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Operating Segment, Geographic and Significant Customer Information | 12 Months Ended
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Dec. 31, 2020
Operating Segment, Geographic and Significant Customer Information | T. OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION Teradyne has four reportable segments (Semiconductor Test, System Test, Wireless Test and Industrial Automation). Each of the reportable segment represents an individual operating segment. 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 is considered one operating segment and one reporting unit. 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 storage and system level test, defense/aerospace instrumentation test, and circuit-board test. The Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services. 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. 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, 2020, 2019, and 2018 is as follows:
|  | Semiconductor Test |  |  | System Test |  |  | Industrial Automation |  |  | Wireless Test |  |  | Corporate and Other |  |  | Consolidated |
|  | (in thousands) |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 2,259,597 |  |  | $ | 409,729 |  |  | $ | 279,731 |  |  | $ | 173,016 |  |  | $ | (604 | ) |  | $ | 3,121,469 |
Income (loss) before taxes (1)(2) |  |  | 739,695 |  |  |  | 152,092 |  |  |  | (24,019 | ) |  |  | 41,950 |  |  |  | (8,703 | ) |  |  | 901,015 |
Total assets (3) |  |  | 1,070,378 |  |  |  | 138,295 |  |  |  | 712,936 |  |  |  | 106,273 |  |  |  | 1,624,464 |  |  |  | 3,652,346 |
Property additions |  |  | 168,055 |  |  |  | 3,092 |  |  |  | 8,899 |  |  |  | 4,931 |  |  |  | — |  |  |  | 184,977 |
Depreciation and amortization expense |  |  | 64,998 |  |  |  | 3,426 |  |  |  | 36,242 |  |  |  | 6,258 |  |  |  | 15,819 |  |  |  | 126,743 |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,552,571 |  |  | $ | 287,455 |  |  | $ | 298,139 |  |  | $ | 157,315 |  |  | $ | (515 | ) |  | $ | 2,294,965 |
Income (loss) before taxes (1)(2) |  |  | 416,973 |  |  |  | 93,543 |  |  |  | (5,916 | ) |  |  | 35,585 |  |  |  | (14,413 | ) |  |  | 525,772 |
Total assets (3) |  |  | 784,808 |  |  |  | 131,428 |  |  |  | 671,559 |  |  |  | 97,299 |  |  |  | 1,101,920 |  |  |  | 2,787,014 |
Property additions |  |  | 112,145 |  |  |  | 3,059 |  |  |  | 9,076 |  |  |  | 10,362 |  |  |  | — |  |  |  | 134,642 |
Depreciation and amortization expense |  |  | 59,197 |  |  |  | 5,518 |  |  |  | 40,904 |  |  |  | 5,365 |  |  |  | 9,671 |  |  |  | 120,655 |
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 |
(1) | Included in Corporate and Other are: contingent consideration adjustments, investment impairment, pension and postretirement plans actuarial gains (losses), severance charges, 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.
(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 Year Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (in thousands) |
Semiconductor Test: |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues—inventory charge |  | $ | 11,013 |  |  | $ | 8,731 |  |  | $ | 6,822 |
Contract termination settlement fee |  |  | 4,000 |  |  |  | — |  |  |  | — |
Restructuring and other—employee severance |  |  | — |  |  |  | 1,277 |  |  |  | 8,429 |
System Test: |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues—inventory charge |  | $ | 887 |  |  | $ | 2,000 |  |  | $ | 1,175 |
Industrial Automation: |  |  |  |  |  |  |  |  |  |  |  |
Restructuring and other—acquisition related expenses and compensation |  | $ | 985 |  |  | $ | 741 |  |  | $ | 1,163 |
Cost of revenues—inventory charge |  |  | 834 |  |  |  | 508 |  |  |  | 680 |
Restructuring and other—employee severance |  |  | 1,584 |  |  |  | 796 |  |  |  | — |
Wireless: |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues—inventory charge |  | $ | 4,800 |  |  | $ | 4,005 |  |  | $ | 2,565 |
Corporate and Other: |  |  |  |  |  |  |  |  |  |  |  |
Restructuring and other—AutoGuide contingent consideration adjustment |  | $ | (19,724 | ) |  | $ | 2,976 |  |  | $ | — |
Restructuring and other—MiR contingent consideration adjustment |  |  | (3,546 | ) |  |  | (22,199 | ) |  |  | 17,666 |
Restructuring and other—acquisition related expenses and compensation |  |  | 1,728 |  |  |  | 1,765 |  |  |  | 3,422 |
Other (income) expense, net—investment impairment charge |  |  | — |  |  |  | 15,000 |  |  |  | — |
Selling and administrative—equity modification charge |  |  | 766 |  |  |  | 2,108 |  |  |  | — |
Restructuring and other—Universal Robots contingent consideration adjustment |  |  | — |  |  |  | — |  |  |  | (16,679 | )
Information as to Teradyne’s revenues by country is as follows:
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (in thousands) |
Revenues from customers (1): |  |  |  |  |  |  |  |  |  |  |  |
Taiwan |  | $ | 1,178,068 |  |  | $ | 485,681 |  |  | $ | 516,322 |
China |  |  | 465,722 |  |  |  | 514,327 |  |  |  | 348,942 |
Korea |  |  | 391,571 |  |  |  | 239,504 |  |  |  | 163,224 |
United States |  |  | 321,674 |  |  |  | 333,059 |  |  |  | 282,869 |
Europe |  |  | 205,587 |  |  |  | 219,015 |  |  |  | 223,207 |
Japan |  |  | 143,983 |  |  |  | 175,322 |  |  |  | 158,281 |
Thailand |  |  | 138,787 |  |  |  | 87,503 |  |  |  | 59,184 |
Singapore |  |  | 76,460 |  |  |  | 84,111 |  |  |  | 108,618 |
Philippines |  |  | 68,887 |  |  |  | 54,560 |  |  |  | 77,996 |
Malaysia |  |  | 56,096 |  |  |  | 58,200 |  |  |  | 122,797 |
Rest of the World |  |  | 74,634 |  |  |  | 43,683 |  |  |  | 39,362 |
|  | $ | 3,121,469 |  |  | $ | 2,294,965 |  |  | $ | 2,100,802 |
(1) | Revenues attributable to a country are based on location of customer site.
In 2020, revenues from Taiwan Semiconductor Manufacturing Company Ltd., a customer of Teradyne’s Semiconductor Test segment, accounted for 15% of Teradyne’s consolidated revenues. In 2019 and 2018, no single direct customer accounted for more than 10% of Teradyne’s consolidated revenues. Teradyne estimates consolidated revenues driven by one OEM customer, combining direct sales to that customer with sales to the customer’s OSATs (which include Taiwan Semiconductor Manufacturing Company Ltd.), accounted for approximately 25%, 10% and 13% of its consolidated revenues in 2020, 2019 and 2018, respectively. Teradyne estimates consolidated revenues driven by Huawei Technologies Co., Ltd. (“Huawei”), combining direct sales to that customer with sales to the customer’s OSATs, accounted for approximately 3% and 11% of its consolidated revenues in 2020 and 2019, respectively. Long-lived assets by geographic area:
|  | United States |  |  | Foreign(1) |  |  | Total |
|  | (in thousands) |
December 31, 2020 |  | $ | 291,234 |  |  | $ | 158,135 |  |  | $ | 449,369 |
December 31, 2019 |  | $ | 252,812 |  |  | $ | 124,943 |  |  | $ | 377,755 |
(1) | As of December 31, 2020 and 2019, long-lived assets attributable to Singapore were $62.5 million and $35.2 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://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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