Operating Segment, Geographic and Significant Customer Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

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.

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, 2023, 2022 and 2021 is as follows:

	Semiconductor Test		System Test		Robotics			Wireless Test		Segment Total		Corporate and Eliminations			Consolidated
	(in thousands)
2023
Revenues	$	1,818,636	$	338,197	$	375,183		$	144,282	$	2,676,298	$	—		$	2,676,298
Income (loss) before taxes (1)(2)		453,320		94,073		(54,251	)		30,568		523,710		1,862			525,572
Total assets (3)		1,329,522		182,084		737,323			68,291		2,317,220		1,169,604			3,486,824
Property additions		113,415		3,643		40,739			1,845		159,642		—			159,642
Depreciation and amortization expense		77,745		3,801		25,527			4,043		111,116		(230	)		110,886
2022
Revenues	$	2,080,590	$	469,346	$	403,138		$	201,720	$	3,154,794	$	251		$	3,155,045
Income (loss) before taxes (1)(2)		634,488		166,879		(16,244	)		66,820		851,943		(11,558	)		840,385
Total assets (3)		1,382,623		165,925		665,638			94,298		2,308,484		1,192,768			3,501,252
Property additions		126,898		7,275		25,712			3,364		163,249		—			163,249
Depreciation and amortization expense		76,532		3,235		25,339			4,991		110,097		578			110,675
2021
Revenues	$	2,642,342	$	467,739	$	375,905		$	216,895	$	3,702,881	$	—		$	3,702,881
Income (loss) before taxes (1)(2)		976,988		163,064		(8,167	)		83,543		1,215,428		(54,473	)		1,160,955
Total assets (3)		1,245,596		170,954		701,196			107,513		2,225,259		1,584,166			3,809,425
Property additions		115,618		3,905		9,821			3,128		132,472		—			132,472
Depreciation and amortization expense		75,982		3,156		27,336			6,055		112,529		12,956			125,485

(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 and divestiture related expenses, contract termination settlement charge, an expense for the modification of Teradyne's former chief executive officer's outstanding equity awards, 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. Semiconductor Test includes $34.8 million of total assets classified as assets held for sale. See Note E: “Assets held for sale” for additional information. 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,
	2023			2022			2021
	(in thousands)
Semiconductor Test:
Cost of revenues—inventory charge	$	22,482		$	21,456		$	6,661
Restructuring and other—employee severance		5,666			—			—
System Test:
Cost of revenues—inventory charge	$	1,855		$	1,730		$	641
Restructuring and other—employee severance		1,541		$	—		$	—
Robotics:
Cost of revenues—inventory charge	$	2,275		$	3,668		$	6,403
Restructuring and other—employee severance		3,707			2,115			1,210
Restructuring and other—acquisition & divestiture related expenses		—			—			1,000
Wireless:
Cost of revenues—inventory charge	$	1,746		$	4,598		$	1,770
Corporate and Eliminations:
Selling and administrative—equity modification charge	$	5,889		$	—		$	—
Restructuring and other—employee severance		3,599			—			—
Restructuring and other—acquisition & divestiture related expenses		3,562			—			(513	)
Restructuring and other—contract termination		1,511			—			—
Restructuring and other—environmental and legal liabilities		1,100			2,700			1,971
Other (income) expense, net—gain on foreign exchange option		(7,464	)		—			—
Restructuring and other—legal settlement charge		—			14,700			12,000
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	)

Information as to Teradyne’s revenues by country is as follows:

	2023		2022		2021
	(in thousands)
Revenues from customers (1):
United States	$	433,661	$	469,948	$	392,626
Korea		394,690		544,816		502,167
Taiwan		384,842		626,424		1,117,874
China		314,899		491,798		631,963
Japan		281,742		162,920		166,231
Europe		273,784		268,384		259,954
Philippines		189,419		124,107		166,838
Singapore		116,969		99,503		121,582
Thailand		91,818		137,356		138,812
Malaysia		89,197		142,203		136,774
Rest of the World		105,277		87,586		68,060
	$	2,676,298	$	3,155,045	$	3,702,881

(1)Revenues attributable to a country are based on location of customer site.

In 2023, revenues from Texas Instruments Inc., a customer of our Semiconductor Test segment, accounted for 10% of our consolidated revenues. In 2021, revenues from Taiwan Semiconductor Manufacturing Company Ltd., a customer of Teradyne’s Semiconductor Test segment, accounted for 12%, 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. Teradyne estimates consolidated revenues driven by one OEM customer, of our Semiconductor Test and Wireless Test segments, combining direct sales to that customer with sales to the customer’s OSATs (which include Taiwan Semiconductor Manufacturing Company Ltd.), accounted for 19% in 2021.

Long-lived assets by geographic area:

	United States		Foreign (1)		Total
	(in thousands)
December 31, 2023 (2)	$	322,445	$	207,995	$	530,440
December 31, 2022	$	328,341	$	164,076	$	492,417

(1)As of December 31, 2023 and December 31, 2022, long-lived assets attributable to Denmark were $78.1 million and $42.5 million, respectively.

(2)Includes $11.5 million of long-lived assets classified as assets held for sale. See Note E: “Assets held for sale” for additional information.