XML 43 R29.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Information
 9 Months Ended
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