Segment Information

6 Months Ended

Jun. 28, 2020

S. SEGMENT INFORMATIO

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

and

distribution channels. 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

and system level

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 in effect are described in Note B: “Accounting Policies” in Teradyne’s Annual Report on Form

10-K

for the year ended December 31, 2019.

Segment information for the three and six months ended June 28, 2020 and June 30, 2019 is as follows:


	Semiconductor Test		System Test		Industrial Automation			Wireless Test		Corporate and Other			Consolidated
	(in thousands)
Three Months Ended June 28, 2020
Revenues	$	659,147	$	71,806	$	58,776		$	49,185	$	(253	)	$	838,661
Income (loss) before income taxes (1)(2)		228,787		19,193		(11,403	)		14,482		(33,768	)		217,291
Total assets (3)		1,192,355		126,164		662,103			108,066		1,160,501			3,249,189
Three Months Ended June 30, 2019
Revenues	$	374,898	$	73,407	$	74,726		$	41,236	$	(89	)	$	564,178
Income before income taxes (1)(2)		91,355		23,535		(3,730	)		10,930		9,087			131,177
Total assets (3)		745,073		123,460		601,676			93,232		1,108,073			2,671,514
Six Months Ended June 28, 2020
Revenues	$	1,143,636	$	187,882	$	119,081		$	92,670	$	(253	)	$	1,543,016
Income (loss) before income taxes (1)(2)		382,603		67,600		(26,738	)		24,702		(33,808	)		414,359
Total assets (3)		1,192,355		126,164		662,103			108,066		1,160,501			3,249,189
Six Months Ended June 30, 2019
Revenues	$	715,751	$	131,627	$	140,862		$	70,277	$	(240	)	$	1,058,277
Income (loss) before income taxes (1)(2)		174,404		38,875		(9,025	)		14,558		6,344			225,156
Total assets (3)		745,073		123,460		601,676			93,232		1,108,073			2,671,514

(1)	Included in Corporate and Other are: contingent consideration adjustments, severance charges, interest income, interest expense, net foreign exchange gains (losses), pension and postretirement plans actuarial (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.

(3)	Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets.

Included in each segment are charges and credits in the following line items in the statements of operations:


	For the Three Months Ended						For the Six Months Ended
	June 28, 2020			June 30, 2019			June 28, 2020			June 30, 2019
	(in thousands)						(in thousands)
Semiconductor Test:
Contract termination settlement charge	$	4,000		$	—		$	4,000		$	—
Cost of revenues—inventory charge		3,799			2,278			6,825			3,452
Restructuring and other—employee severance		—			—			—			924
Wireless Test:
Cost of revenues—inventory charge		1,582			829			2,155			1,168
Industrial Automation:
Restructuring and other—acquisition related expenses and compensation		—			—			790			1,695
System Test:
Cost of revenues—inventory charge		—			—			—			763
Corporate and Other:
Restructuring and other—AutoGuide contingent consideration adjustment		29,927			—			22,785			—
Restructuring and other—acquisition related expenses and compensation		2,974			—			3,715			—
Restructuring and other – other		750			—			750			—
Restructuring and other—MiR contingent consideration adjustment		(668	)		(11,671	)		(3,546	)		(8,668	)