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Operating Segment, Geographic and Significant Customer Information
 12 Months Ended
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