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Operating Segment, Geographic and Significant Customer Information | 12 Months Ended
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Dec. 31, 2022
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 Robotics). Each of the reportable segments represents an individual operating segment. On September 15, 2020, Teradyne announced the appointment of Gregory Smith as President of Robotics reportable segment effective October 1, 2020. With the appointment of the President of Robotics, the Robotics 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 Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms, autonomous mobile robots and advanced robotic control software. Each operating segment has a segment manager who is accountable to and maintains regular contract with Teradyne’s chief operating decision maker (Teradyne’s chief executive officer) to discuss operating activities, financial results, forecasts, and plans for the segment. 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, 2022, 2021, and 2020 is as follows:
|  | Semiconductor Test |  |  | System Test |  |  | Robotics |  |  | Wireless Test |  |  | Corporate and Eliminations |  |  | Consolidated |
|  | (in thousands) |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 2,080,590 |  |  | $ | 469,346 |  |  | $ | 403,138 |  |  | $ | 201,720 |  |  | $ | 251 |  |  | $ | 3,155,045 |
Income (loss) before taxes (1)(2) |  |  | 634,488 |  |  |  | 166,879 |  |  |  | (16,244 | ) |  |  | 66,820 |  |  |  | (11,558 | ) |  |  | 840,385 |
Total assets (3) |  |  | 1,382,623 |  |  |  | 165,925 |  |  |  | 665,638 |  |  |  | 94,298 |  |  |  | 1,192,768 |  |  |  | 3,501,252 |
Property additions |  |  | 126,898 |  |  |  | 7,275 |  |  |  | 25,712 |  |  |  | 3,364 |  |  |  | — |  |  |  | 163,249 |
Depreciation and amortization expense |  |  | 76,532 |  |  |  | 3,235 |  |  |  | 25,339 |  |  |  | 4,991 |  |  |  | 578 |  |  |  | 110,675 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 2,642,342 |  |  | $ | 467,739 |  |  | $ | 375,905 |  |  | $ | 216,895 |  |  | $ | — |  |  | $ | 3,702,881 |
Income (loss) before taxes (1)(2) |  |  | 976,988 |  |  |  | 163,064 |  |  |  | (8,167 | ) |  |  | 83,543 |  |  |  | (54,473 | ) |  |  | 1,160,955 |
Total assets (3) |  |  | 1,245,596 |  |  |  | 170,954 |  |  |  | 701,196 |  |  |  | 107,513 |  |  |  | 1,584,166 |  |  |  | 3,809,425 |
Property additions |  |  | 115,618 |  |  |  | 3,905 |  |  |  | 9,821 |  |  |  | 3,128 |  |  |  | — |  |  |  | 132,472 |
Depreciation and amortization expense |  |  | 75,982 |  |  |  | 3,156 |  |  |  | 27,336 |  |  |  | 6,055 |  |  |  | 12,956 |  |  |  | 125,485 |
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 |
(1) | Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, pension and postretirement plan actuarial gains (losses), legal and environmental fees, contingent consideration adjustments, acquisition related charges and compensation and loss on convertible debt conversions in 2021.
(2) | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and loss on convertible debt conversions in 2021.
(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 Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Semiconductor Test: |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues—inventory charge |  | $ | 21,456 |  |  | $ | 6,661 |  |  | $ | 11,013 |
Contract termination settlement fee |  |  | — |  |  |  | — |  |  |  | 4,000 |
System Test: |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues—inventory charge |  | $ | 1,730 |  |  | $ | 641 |  |  | $ | 887 |
Robotics: |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues—inventory charge |  | $ | 3,668 |  |  | $ | 6,403 |  |  | $ | 834 |
Restructuring and other—employee severance |  |  | 2,115 |  |  |  | 1,210 |  |  |  | 1,584 |
Restructuring and other—acquisition related expenses and compensation |  |  | — |  |  |  | 1,000 |  |  |  | 985 |
Wireless Test: |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues—inventory charge |  | $ | 4,598 |  |  | $ | 1,770 |  |  | $ | 4,800 |
Corporate and Eliminations: |  |  |  |  |  |  |  |  |  |  |  |
Restructuring and other—legal settlement charge |  | $ | 14,700 |  |  | $ | 12,000 |  |  | $ | — |
Restructuring and other— environmental and legal liabilities |  |  | 2,700 |  |  |  | 1,971 |  |  |  | — |
Restructuring and other—gain on sale of asset |  |  | (3,410 | ) |  |  | — |  |  |  | — |
Other (income) expense, net—loss on convertible debt conversion |  |  | — |  |  |  | 28,828 |  |  |  | — |
Restructuring and other—AutoGuide contingent consideration adjustment |  |  | — |  |  |  | (7,227 | ) |  |  | (19,724 | )
Restructuring and other—MiR contingent consideration adjustment |  |  | — |  |  |  | — |  |  |  | (3,546 | )
Restructuring and other—acquisition related expenses and compensation |  |  | — |  |  |  | (513 | ) |  |  | 1,728 |
Selling and administrative—equity modification charge |  |  | — |  |  |  | — |  |  |  | 766 |
Information as to Teradyne’s revenues by country is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Revenues from customers (1): |  |  |  |  |  |  |  |  |  |  |  |
Taiwan |  | $ | 626,424 |  |  | $ | 1,117,874 |  |  | $ | 1,178,068 |
Korea |  |  | 544,816 |  |  |  | 502,167 |  |  |  | 391,571 |
China |  |  | 491,798 |  |  |  | 631,963 |  |  |  | 465,722 |
United States |  |  | 469,948 |  |  |  | 392,626 |  |  |  | 321,674 |
Europe |  |  | 268,384 |  |  |  | 259,954 |  |  |  | 205,587 |
Japan |  |  | 162,920 |  |  |  | 166,231 |  |  |  | 143,983 |
Malaysia |  |  | 142,203 |  |  |  | 136,774 |  |  |  | 56,096 |
Thailand |  |  | 137,356 |  |  |  | 138,812 |  |  |  | 138,787 |
Philippines |  |  | 124,107 |  |  |  | 166,838 |  |  |  | 68,887 |
Singapore |  |  | 99,503 |  |  |  | 121,582 |  |  |  | 76,460 |
Rest of the World |  |  | 87,586 |  |  |  | 68,060 |  |  |  | 74,634 |
|  | $ | 3,155,045 |  |  | $ | 3,702,881 |  |  | $ | 3,121,469 |
(1) | Revenues attributable to a country are based on location of customer site.
In 2021 and 2020, revenues from Taiwan Semiconductor Manufacturing Company Ltd., a customer of Teradyne’s Semiconductor Test segment, accounted for 12% and 15%, respectively, of Teradyne’s consolidated revenues. Teradyne estimates consolidated revenues driven by Qualcomm, a customer of our Semiconductor Test, System Test, and Wireless Test segments, combining direct and indirect sales, accounted for approximately 11% of its consolidated revenues in 2022 and less than 10% in 2021 and 2020. Teradyne estimates consolidated revenues driven by one OEM customer, of our Semiconductor Test and Wireless Test segments, combining
|  | United States |  |  | Foreign |  |  | Total |
|  | (in thousands) |
December 31, 2022 |  | $ | 328,341 |  |  | $ | 164,076 |  |  | $ | 492,417 |
December 31, 2021 |  | $ | 308,438 |  |  | $ | 147,609 |  |  | $ | 456,047 |

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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