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Segment Information
 6 Months Ended
Jul. 02, 2023
Segment Reporting [Abstract]  
Segment Information
R. SEGMENT INFORMATION
Teradyne has four reportable segments (Semiconductor Test, System Test, Wireless Test and Robotics). Each of the reportable segments represents 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 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 contact 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” in Teradyne’s Annual Report on Form
10-K
for the year ended December 31, 2022.
Segment information for the three and six months ended July 2, 2023 and July 3, 2022 is as follows:

 
 
  
Semiconductor

Test
 
  
System

Test
 
  
Robotics
 
 
Wireless

Test
 
  
Corporate

and

Eliminations
 
 
Consolidated
 
 
  
 
 
  
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
  
(in thousands)
 
Three Months Ended July 2, 2023
                                                    
Revenues
    $ 474,708      $ 94,272      $ 71,634     $ 43,823      $ —       $ 684,437  
Income (loss) before income taxes (1)(2)
      129,040        28,599        (26,401 )      12,020        1,144       144,402  
Total assets (3)
      1,416,109        191,002        685,132       88,869        1,013,784       3,394,896  
Three Months Ended July 3, 2022
                                                    
Revenues
    $ 541,348      $ 134,702      $ 101,055     $ 63,854      $ (193 )    $ 840,766  
Income (loss) before income taxes (1)(2)
      177,782        54,042        (6,406 )      25,393        (12,219 )      238,592  
Total assets (3)
      1,449,878        229,359        644,099       118,445        1,046,645       3,488,426  
Six Months Ended July 2, 2023
                                                    
Revenues
    $ 889,717      $ 168,903      $ 160,848     $ 82,498      $ —       $ 1,301,966  
Income (loss) before income taxes (1)(2)
      225,225        43,874        (44,891 )      21,372        (4,094 )      241,486  
Total assets (3)
      1,416,109        191,002        685,132       88,869        1,013,784       3,394,896  
Six Months Ended July 3, 2022
                                                    
Revenues
    $ 1,023,688      $ 253,371      $ 204,244     $ 115,372      $ (539 )    $ 1,596,136  
Income (loss) before income taxes (1)(2)
      327,487        95,365        (11,504 )      44,012        (36,409 )      418,951  
Total assets (3)
      1,449,878        229,359        644,099       118,445        1,046,645       3,488,426  
 
(1)
Included in Corporate and Eliminations are: interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, legal and environmental fees, severance charges, pension, and an expense for the modification of Teradyne’s former chief executive officer’s outstanding equity awards.
(2)
Included in income (loss) before taxes are charges 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 Six Months

Ended
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  
July 2,
2023
 
  
July 3,
2022
 
  
July 2,
2023
 
  
July 3,
2022
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  
(in thousands)
 
Semiconductor Test:
                                    
Cost of revenues—inventory charge
    $ 4,184      $ 2,071      $ 7,952      $ 2,315  
Restructuring and other—employee severance
      2,485        —          3,279           
System Test:
                                    
Cost of revenues—inventory charge
    $ —        $ —        $ 1,113      $ —    
Restructuring and other—employee severance
      —          —          642        —    
Robotics:
                                    
Restructuring and other—employee severance
    $ 1,638      $ —        $ 2,071      $ —    
Cost of revenues—inventory charge
      769        831        1,551        1,197  
Wireless:
                                    
Cost of revenues—inventory charge
    $ —        $ 2,099      $ 725      $ 2,976  
Corporate and Eliminations:
                                    
Restructuring and other—other
    $ 1,100        1,500        1,100        2,000  
Restructuring and other—employee severance
      —          —          1,124        —    
Selling and administrative—equity modification charge
      —          —          5,889        —    
Restructuring and other—legal settlement charge
      —          —          —          14,700