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Segment Information | 9 Months Ended
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Sep. 27, 2020
Segment Reporting [Abstract] |
Segment Information | T. SEGMENT 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 and distribution channels. On September 15, 2020, Teradyne announced the appointment of Gregory Smith as President of Teradyne’s Industrial Automation reportable segment effective October 1, 2020. With the appointment of Gregory Smith, the Industrial Automation reportable segment will become an individual operating segment. 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 produc t s 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 nine months ended September 27, 2020 an d September 29, 2019 is as follows:
|  | Semiconductor Test |  |  | System Test |  |  | Industrial Automation |  |  | Wireless Test |  |  | Corporate and Other |  |  | Consolidated |
|  | (in thousands) |
Three Months Ended September 27, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 592,141 |  |  | $ | 118,169 |  |  | $ | 68,711 |  |  | $ | 40,504 |  |  | $ | (41 | ) |  | $ | 819,484 |
Income (loss) before income taxes (1)(2) |  |  | 189,116 |  |  |  | 47,368 |  |  |  | (5,302 | ) |  |  | 10,938 |  |  |  | 21,611 |  |  |  | 263,731 |
Total assets (3) |  |  | 1,069,830 |  |  |  | 155,642 |  |  |  | 667,132 |  |  |  | 108,671 |  |  |  | 1,435,237 |  |  |  | 3,436,512 |
Three Months Ended September 29, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 397,737 |  |  | $ | 73,305 |  |  | $ | 68,892 |  |  | $ | 42,264 |  |  | $ | (160 | ) |  | $ | 582,038 |
Income (loss) before income taxe s (1) (2) |  |  | 116,633 |  |  |  | 24,381 |  |  |  | (1,645 | ) |  |  | 11,182 |  |  |  | 1,182 |  |  |  | 151,733 |
Total assets (3) |  |  | 757,422 |  |  |  | 126,452 |  |  |  | 580,635 |  |  |  | 94,789 |  |  |  | 1,139,493 |  |  |  | 2,698,791 |
Nine Months Ended September 27, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,735,777 |  |  | $ | 306,051 |  |  | $ | 187,792 |  |  | $ | 133,174 |  |  | $ | (294 | ) |  | $ | 2,362,500 |
Income (loss) before income taxes (1)(2) |  |  | 571,719 |  |  |  | 114,968 |  |  |  | (32,041 | ) |  |  | 35,640 |  |  |  | (12,197 | ) |  |  | 678,089 |
Total assets (3) |  |  | 1,069,830 |  |  |  | 155,642 |  |  |  | 667,132 |  |  |  | 108,671 |  |  |  | 1,435,237 |  |  |  | 3,436,512 |
Nine Months Ended September 29, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,113,489 |  |  | $ | 204,934 |  |  | $ | 209,753 |  |  | $ | 112,541 |  |  | $ | (402 | ) |  | $ | 1,640,315 |
Income (loss) before income taxes (1)(2) |  |  | 291,037 |  |  |  | 63,254 |  |  |  | (10,670 | ) |  |  | 25,740 |  |  |  | 7,528 |  |  |  | 376,889 |
Total assets (3) |  |  | 757,422 |  |  |  | 126,452 |  |  |  | 580,635 |  |  |  | 94,789 |  |  |  | 1,139,493 |  |  |  | 2,698,791 |
(1) | Included in Corporate and Other are: contingent consideration adjustments, employee severance charges, interest (income) and expense , net foreign exchange (gains) and losses, pension and postretirement plan actuarial (gains) and losses and settlement charges, intercompany eliminations, and certain acquisition related charges and compensation.
(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 Nine Months Ended |
|  |  | September 27, |  |  | September 29, |  |  | September 27, |  |  | September 29, |
|  |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
|  |  | (in thousands) |
Semiconductor Test: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues - inventory charge |  |  | $ | 1,131 |  |  | $ | 1,867 |  |  | $ | 7,956 |  |  | $ | 5,319 |
Restructuring and other - contract termination settlement fee |  |  |  | — |  |  |  | — |  |  |  | 4,000 |  |  |  | — |
Restructuring and other - employee severance |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,009 |
Wireless: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues - inventory charge |  |  | $ | 1,802 |  |  | $ | 724 |  |  | $ | 3,957 |  |  | $ | 1,892 |
Restructuring and other - employee severance |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 566 |
Industrial Automation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues - inventory charge |  |  | $ | — |  |  | $ | — |  |  | $ | 505 |  |  | $ | 508 |
Restructuring and other - acquisition related compensation and expenses |  |  |  | — |  |  |  | — |  |  |  | 790 |  |  |  | 1,330
Restructuring and other - employee severance |  |  |  | — |  |  |  | — |  |  |  | 664 |  |  |  | 604 |
System Test: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues - inventory charge |  |  | $ | — |  |  | $ | — |  |  | $ | 698 |  |  | $ | 1,129 |
Corporate and Other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restructuring and other - AutoGuide contingent consideration adjustment |  |  | $ | (27,206 | ) |  | $ | — |  |  | $ | (4,421 | ) |  | $ | — |
Restructuring and other - acquisition related compensation and expenses |  |  |  | (1,086 | ) |  |  | 816 |  |  |  | 2,629 |  |  |  | 928 |
Restructuring and other - MiR contingent consideration adjustment |  |  |  | — |  |  |  | (7,759 | ) |  |  | (3,546 | ) |  |  | (16,427 | )
Selling and administrative - equity modification charge |  |  |  | — |  |  |  | 2,108 |  |  |  | — |  |  |  | 2,108 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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