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Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information

T. 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 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” in Teradyne’s Annual Report on Form 10-K for the year ended December 31, 2023.

Segment information for the three and six months ended June 30, 2024, and July 2, 2023, is as follows:

 

 

 

Semiconductor
Test

 

 

System
Test

 

 

Robotics

 

 

Wireless
Test

 

 

Segment Total

 

 

Corporate
and
Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Three Months Ended June 30, 2024

 

Revenues

 

$

542,564

 

 

$

60,801

 

 

$

90,247

 

 

$

36,267

 

 

$

729,879

 

 

$

—

 

 

$

729,879

 

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

 

 

158,284

 

 

 

5,224

 

 

 

(17,916

)

 

 

9,970

 

 

$

155,562

 

 

 

63,841

 

 

$

219,403

 

Total assets (3)

 

 

1,306,390

 

 

 

175,567

 

 

 

731,264

 

 

 

83,262

 

 

$

2,296,483

 

 

 

1,335,223

 

 

$

3,631,706

 

Three Months Ended July 2, 2023

 

Revenues

 

$

474,708

 

 

$

94,272

 

 

$

71,634

 

 

$

43,823

 

 

$

684,437

 

 

$

—

 

 

$

684,437

 

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

 

 

129,040

 

 

 

28,599

 

 

 

(26,401

)

 

 

12,020

 

 

$

143,258

 

 

 

1,144

 

 

$

144,402

 

Total assets (3)

 

 

1,416,109

 

 

 

191,002

 

 

 

685,132

 

 

 

88,869

 

 

$

2,381,112

 

 

 

1,013,784

 

 

$

3,394,896

 

Six Months Ended June 30, 2024

 

Revenues

 

$

954,817

 

 

$

136,123

 

 

$

177,901

 

 

$

60,856

 

 

$

1,329,698

 

 

$

—

 

 

$

1,329,698

 

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

 

 

237,698

 

 

 

23,615

 

 

 

(31,892

)

 

 

9,076

 

 

$

238,497

 

 

 

53,808

 

 

$

292,305

 

Total assets (3)

 

 

1,306,390

 

 

 

175,567

 

 

 

731,264

 

 

 

83,262

 

 

$

2,296,483

 

 

 

1,335,223

 

 

$

3,631,706

 

Six Months Ended July 2, 2023

 

Revenues

 

$

889,717

 

 

$

168,903

 

 

$

160,848

 

 

$

82,498

 

 

$

1,301,966

 

 

$

—

 

 

$

1,301,966

 

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

 

 

225,225

 

 

 

43,874

 

 

 

(44,891

)

 

 

21,372

 

 

$

245,580

 

 

 

(4,094

)

 

$

241,486

 

Total assets (3)

 

 

1,416,109

 

 

 

191,002

 

 

 

685,132

 

 

 

88,869

 

 

$

2,381,112

 

 

 

1,013,784

 

 

$

3,394,896

 

 

(1)
Included in Corporate and Eliminations are: interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, severance charges, pension, acquisition and divestiture related fees, and an expense for the modification of outstanding equity awards.
(2)
Included in income (loss) before taxes are charges related to restructuring and other, expense for the modification of outstanding equity awards, 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

 

 

 

June 30,
2024

 

 

July 2,
2023

 

 

June 30,
2024

 

 

July 2,
2023

 

 

 

(in thousands)

 

 

(in thousands)

 

Semiconductor Test:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues—inventory charge

 

$

2,408

 

 

$

4,184

 

 

$

7,364

 

 

$

7,952

 

Restructuring and other—employee severance

 

 

—

 

 

 

2,485

 

 

 

1,130

 

 

 

3,279

 

System Test:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues—inventory charge

 

$

—

 

 

$

—

 

 

$

720

 

 

$

1,113

 

Restructuring and other—employee severance

 

 

—

 

 

 

—

 

 

 

—

 

 

 

642

 

Robotics:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and other—employee severance

 

$

1,308

 

 

$

1,638

 

 

$

1,537

 

 

$

2,071

 

Cost of revenues—inventory charge

 

 

—

 

 

 

769

 

 

 

534

 

 

 

1,551

 

Wireless Test:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues—inventory charge

 

$

—

 

 

$

—

 

 

$

820

 

 

$

725

 

Corporate and Eliminations:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and other—acquisition & divestiture related
   expenses

 

$

—

 

 

$

—

 

 

$

2,214

 

 

$

—

 

Selling and administrative —equity modification

 

 

—

 

 

 

—

 

 

 

1,469

 

 

 

5,889

 

Restructuring and other—other

 

 

—

 

 

 

1,100

 

 

 

—

 

 

 

1,100

 

Restructuring and other—employee severance

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,124