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Operating Segment, Geographic and Significant Customer Information | 12 Months Ended
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Dec. 31, 2018
Operating Segment, Geographic and Significant Customer Information | R. OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION Teradyne has four reportable segments (Semiconductor Test, System Test, Industrial Automation and Wireless Test). Each of the Semiconductor Test, System Test, and Wireless Test segments is also an individual operating segment. The Industrial Automation reportable segment consists of operating segments with discrete financial information, which have been combined into one reportable segment as they share similar economic characteristics, types of products, production processes, distribution channels, and currency risks. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services. The System Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace instrumentation test, storage test and circuit-board test. The Industrial Automation segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms, autonomous mobile robots and advanced robotic control software. The Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services. Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income (loss) before income taxes. The accounting policies of the business segments are the same as those described in Note B: “Accounting Policies.” Segment information for the years ended December 31, 2018, 2017, and 2016 is as follows:
|  | Semiconductor Test |  |  | System Test |  |  | Industrial Automation |  |  | Wireless Test |  |  | Corporate And Other |  |  | Consolidated |
|  | (in thousands) |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,492,417 |  |  | $ | 216,132 |  |  | $ | 261,452 |  |  | $ | 132,006 |  |  | $ | (1,205 | ) |  | $ | 2,100,802 |
Income (loss) before taxes (1)(2) |  |  | 397,645 |  |  |  | 48,857 |  |  |  | 7,670 |  |  |  | 29,052 |  |  |  | (15,423 | ) |  |  | 467,801 |
Total assets (3) |  |  | 669,452 |  |  |  | 88,098 |  |  |  | 607,502 |  |  |  | 77,570 |  |  |  | 1,263,984 |  |  |  | 2,706,606 |
Property additions |  |  | 94,496 |  |  |  | 3,469 |  |  |  | 11,188 |  |  |  | 5,226 |  |  |  | — |  |  |  | 114,379 |
Depreciation and amortization expense |  |  | 58,095 |  |  |  | 6,430 |  |  |  | 36,755 |  |  |  | 5,328 |  |  |  | 6,616 |  |  |  | 113,224 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,662,549 |  |  | $ | 192,135 |  |  | $ | 170,056 |  |  | $ | 111,866 |  |  | $ | — |  |  | $ | 2,136,606 |
Income (loss) before taxes (1)(2) |  |  | 491,361 |  |  |  | 10,305 |  |  |  | 8,763 |  |  |  | 17,350 |  |  |  | (3,368 | ) |  |  | 524,411 |
Total assets (3) |  |  | 597,480 |  |  |  | 97,018 |  |  |  | 368,037 |  |  |  | 59,912 |  |  |  | 1,987,098 |  |  |  | 3,109,545 |
Property additions |  |  | 87,920 |  |  |  | 5,976 |  |  |  | 7,044 |  |  |  | 4,435 |  |  |  | — |  |  |  | 105,375 |
Depreciation and amortization expense |  |  | 58,901 |  |  |  | 6,646 |  |  |  | 25,711 |  |  |  | 5,392 |  |  |  | 11,425 |  |  |  | 108,075 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,368,169 |  |  | $ | 189,846 |  |  | $ | 99,031 |  |  | $ | 96,204 |  |  | $ | — |  |  | $ | 1,753,250 |
Income (loss) before taxes (1)(2) |  |  | 311,939 |  |  |  | 28,916 |  |  |  | (16,783 | ) |  |  | (371,409 | ) |  |  | (7,723 | ) |  |  | (55,060 | )
Total assets (3) |  |  | 557,546 |  |  |  | 110,361 |  |  |  | 317,635 |  |  |  | 62,366 |  |  |  | 1,714,585 |  |  |  | 2,762,493 |
Property additions |  |  | 70,543 |  |  |  | 3,788 |  |  |  | 6,755 |  |  |  | 4,186 |  |  |  | — |  |  |  | 85,272 |
Depreciation and amortization expense |  |  | 58,087 |  |  |  | 6,551 |  |  |  | 26,869 |  |  |  | 25,921 |  |  |  | 2,581 |  |  |  | 120,009 |
(1) | Included in Corporate and Other are: contingent consideration adjustments, pension and postretirement plans actuarial gains (losses), severance charges, impairment of fixed assets and expenses related to the Japan earthquake, property insurance recovery, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations and acquisition related charges.
(2) | Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. In 2016, loss before income taxes in Wireless Test also included charges related to goodwill and acquired intangible assets impairment.
(3) | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets.
Included in the Semiconductor Test segment are charges in the following accounts:
|  | For the Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in thousands) |
Restructuring and other—employee severance |  | $ | 8,429 |  |  | $ | 1,779 |  |  | $ | 2,860 |
Cost of revenues—inventory charge |  |  | 6,822 |  |  |  | 4,606 |  |  |  | 9,656 |
Restructuring and other—impairment of fixed assets |  |  | — |  |  |  | 1,124 |  |  |  | — |
Included in the System Test segment are charges in the following accounts:
|  | For the Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 1,175 |  |  | $ | 1,918 |  |  | $ | 630 |
Included in the Industrial Automation segment are charges in the following accounts:
|  | For the Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in thousands) |
Restructuring and other—acquisition related expenses and compensation |  | $ | 1,163 |  |  | $ | — |  |  | $ | — |
Cost of revenues—inventory charge |  |  | 680 |  |  |  | — |  |  |  | — |
Restructuring and other—employee severance |  |  | — |  |  |  | 1,414 |  |  |  | 585 |
Included in the Wireless Test segment are charges in the following accounts:
|  | For the Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 2,565 |  |  | $ | 2,190 |  |  | $ | 7,207 |
Restructuring and other—lease impairment |  |  | — |  |  |  | 972 |  |  |  | — |
Restructuring and other—employee severance |  |  | — |  |  |  | — |  |  |  | 2,650 |
Goodwill impairment charge |  |  | — |  |  |  | — |  |  |  | 254,946 |
Intangible assets impairment charge |  |  | — |  |  |  | — |  |  |  | 83,339 |
Included in Corporate and Other are charges and credits in the following accounts:
|  | For the Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in thousands) |
Restructuring and other—MiR contingent consideration adjustment |  | $ | 17,666 |  |  | $ | — |  |  | $ | — |
Restructuring and other—Universal Robots contingent consideration adjustment |  |  | (16,679 | ) |  |  | 7,820 |  |  |  | 15,346 |
Restructuring and other—acquisition related expenses |  |  | 3,422 |  |  |  | — |  |  |  | — |
Restructuring and other |  |  | 872 |  |  |  | — |  |  |  | — |
Restructuring and other—expense related to Japan earthquake and impairment of fixed assets |  |  | — |  |  |  | 755 |  |  |  | 5,051 |
Restructuring and other—property insurance recovery |  |  | — |  |  |  | (5,064 | ) |  |  | (5,051 | )
Information as to Teradyne’s revenues by country is as follows:
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in thousands) |
Revenues from customers (1): |  |  |  |  |  |  |  |  |  |  |  |
Taiwan |  | $ | 516,322 |  |  | $ | 687,031 |  |  | $ | 653,076 |
China |  |  | 348,942 |  |  |  | 260,451 |  |  |  | 174,876 |
United States |  |  | 282,869 |  |  |  | 252,516 |  |  |  | 221,948 |
Europe |  |  | 223,207 |  |  |  | 163,715 |  |  |  | 117,671 |
Korea |  |  | 163,224 |  |  |  | 206,819 |  |  |  | 147,882 |
Japan |  |  | 158,281 |  |  |  | 169,093 |  |  |  | 135,978 |
Malaysia |  |  | 122,797 |  |  |  | 124,048 |  |  |  | 103,472 |
Singapore |  |  | 108,618 |  |  |  | 101,085 |  |  |  | 73,172 |
Philippines |  |  | 77,996 |  |  |  | 105,850 |  |  |  | 54,705 |
Thailand |  |  | 59,184 |  |  |  | 29,566 |  |  |  | 43,097 |
Rest of the World |  |  | 39,362 |  |  |  | 36,432 |  |  |  | 27,373 |
|  | $ | 2,100,802 |  |  | $ | 2,136,606 |  |  | $ | 1,753,250 |
(1) | Revenues attributable to a country are based on location of customer site.
In 2018, no single customer accounted for more than 10% of total consolidated revenue. In 2017 and 2016, one customer of Teradyne’s Semiconductor Test segment accounted for 13 % and 12%, respectively, of total consolidated revenues. In 2016, a different customer of Teradyne’s Semiconductor Test segment accounted for 12% of total consolidated revenues. Teradyne estimates consolidated revenues driven by a single OEM customer, combining direct sales to that customer with sales to the customer’s outsourced semiconductor assembly and test providers (“OSATs”), accounted for approximately 13%, 22%, and 26% of Teradyne’s consolidated revenues in 2018, 2017, and 2016, respectively. Long-lived assets by geographic area:
|  | United States |  |  | Foreign(1) |  |  | Total |
|  | (in thousands) |
December 31, 2018 |  | $ | 209,368 |  |  | $ | 70,453 |  |  | $ | 279,821 |
December 31, 2017 |  | $ | 198,855 |  |  | $ | 69,592 |  |  | $ | 268,447 |
(1) | As of December 31, 2018 and 2017, long-lived assets attributable to Singapore were $19.4 million and $23.6 million, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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