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Segment Information
 9 Months Ended
Oct. 01, 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 nine months ended October 1, 2023 and October 2, 2022 is as follows:

 

 

 

Semiconductor
Test

 

 

System
Test

 

 

Robotics

 

 

Wireless
Test

 

 

Corporate
and
Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Three Months Ended October 1, 2023

 

Revenues

 

$

497,863

 

 

$

83,203

 

 

$

85,692

 

 

$

36,974

 

 

$

—

 

 

$

703,732

 

Income (loss) before income taxes (1)(2)

 

 

136,451

 

 

 

23,754

 

 

 

(21,812

)

 

 

9,469

 

 

 

(3,582

)

 

 

144,280

 

Total assets (3)

 

 

1,382,444

 

 

 

178,904

 

 

 

684,207

 

 

 

92,514

 

 

 

1,032,586

 

 

 

3,370,655

 

Three Months Ended October 2, 2022

 

Revenues

 

$

575,704

 

 

$

116,154

 

 

$

89,067

 

 

$

46,148

 

 

$

—

 

 

$

827,073

 

Income (loss) before income taxes (1)(2)

 

 

182,625

 

 

 

40,201

 

 

 

(3,992

)

 

 

12,647

 

 

 

(5,284

)

 

 

226,197

 

Total assets (3)

 

 

1,366,478

 

 

 

192,684

 

 

 

614,558

 

 

 

110,484

 

 

 

1,035,702

 

 

 

3,319,906

 

Nine Months Ended October 1, 2023

 

Revenues

 

$

1,387,580

 

 

$

252,106

 

 

$

246,541

 

 

$

119,472

 

 

$

—

 

 

$

2,005,699

 

Income (loss) before income taxes (1)(2)

 

 

361,676

 

 

 

67,629

 

 

 

(66,704

)

 

 

30,841

 

 

 

(7,675

)

 

 

385,767

 

Total assets (3)

 

 

1,382,444

 

 

 

178,904

 

 

 

684,207

 

 

 

92,514

 

 

 

1,032,586

 

 

 

3,370,655

 

Nine Months Ended October 2, 2022

 

Revenues

 

$

1,599,392

 

 

$

369,525

 

 

$

292,772

 

 

$

161,520

 

 

$

—

 

 

$

2,423,209

 

Income (loss) before income taxes (1)(2)

 

 

510,112

 

 

 

135,566

 

 

 

(15,496

)

 

 

56,659

 

 

 

(41,693

)

 

 

645,148

 

Total assets (3)

 

 

1,366,478

 

 

 

192,684

 

 

 

614,558

 

 

 

110,484

 

 

 

1,035,702

 

 

 

3,319,906

 

 

(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, contract termination settlement charge 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 Nine Months
 Ended

 

 

 

October 1,
2023

 

 

October 2,
2022

 

 

October 1,
2023

 

 

October 2,
2022

 

 

 

(in thousands)

 

Semiconductor Test:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues—inventory charge

 

$

10,422

 

 

$

10,829

 

 

$

18,374

 

 

$

13,144

 

Restructuring and other—employee severance

 

 

1,776

 

 

 

—

 

 

 

5,055

 

 

 

—

 

System Test:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and other—employee severance

 

$

—

 

 

$

—

 

 

$

1,124

 

 

$

—

 

Cost of revenues—inventory charge

 

 

—

 

 

 

—

 

 

 

1,412

 

 

 

—

 

Robotics:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues—inventory charge

 

$

652

 

 

$

—

 

 

$

2,203

 

 

$

1,411

 

Restructuring and other—employee severance

 

 

636

 

 

 

1,074

 

 

 

2,707

 

 

 

1,616

 

Wireless:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues—inventory charge

 

$

—

 

 

$

966

 

 

$

1,080

 

 

$

3,942

 

Corporate and Eliminations:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and other—employee severance

 

$

1,753

 

 

$

—

 

 

$

2,877

 

 

$

—

 

Restructuring and other—contract termination

 

 

1,511

 

 

 

—

 

 

 

1,511

 

 

 

—

 

Selling and administrative —equity modification

 

 

—

 

 

 

—

 

 

 

5,889

 

 

 

—

 

Restructuring and other—other

 

 

—

 

 

 

700

 

 

 

1,100

 

 

 

2,700

 

Restructuring and other—legal settlement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,700