Segment, Geographic and Significant Customer Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment, Geographic and Significant Customer Information

U.SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

Teradyne historically has had four reportable segments (Semiconductor Test, System Test, Wireless Test and Robotics). Each of the reportable segments represented an individual operating segment.

In the fourth quarter of 2024, Teradyne observed a shift in forecasted revenue generating activities within Integrated System Test, a historical component of System Test, to activities that more closely align with the Semiconductor Test segment. In response, beginning in the fourth quarter of 2024, Teradyne made changes to the operational structure of the business to better align the components within the operating segments based on the chief operating decision maker’s ("CODM") conclusion that it would be more appropriate to include Integrated System Test results within Semiconductor Test results. This was a primary consideration for including Integrated System Test within Semiconductor Test and will allow for better informed decisions related to evaluating segment performance. This change does not result in a change in the identified operating segments. However, the System Test segment no longer meets the requirements for individual disclosure. Wireless Test also does not meet the requirements for individual disclosure. As such, System Test and Wireless Test will be included within the “All other” segments category.

As of December 31, 2024, Teradyne has two reportable segments (Semiconductor Test and Robotics). Each of the reportable segments continues to represent an individual operating segment.

The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services inclusive of storage and system level test products. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms and autonomous mobile robots. Each reportable segment has a segment manager who is accountable to and maintains regular contact with Teradyne’s CODM (Teradyne’s chief executive officer) to discuss operating activities, financial results, forecasts, and plans for the segment.

The CODM uses business segment income (loss) before income taxes predominantly in the annual budgeting and forecasting process. The CODM also uses this measure when making decisions about the allocation of operating and capital resources to each segment. 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, 2024, 2023 and 2022 is as follows:

	Semiconductor Test		Robotics			Reportable Segments		All Other		Corporate and Eliminations			Consolidated
	(in thousands)
2024
Revenues	$	2,123,920	$	364,848		$	2,488,768	$	331,112	$	—		$	2,819,880
Less:
Cost of revenues		866,353		155,080			1,021,433		120,400		—			1,141,833
Engineering and development		295,614		67,306			362,920		46,556		—			409,476
Selling and marketing		187,384		113,327			300,711		50,317		—			351,028
General and administrative		89,952		54,328			144,280		21,282		—			165,562
Other segment items (1)(2)		126,449		52,359			178,808		26,833		(62,746	)		142,895
Income (loss) before taxes (2)		558,168		(77,552	)		480,616		65,724		62,746			609,086
Total assets (3)		1,287,219		742,017			2,029,236		213,749		1,465,730			3,708,714
Property additions		168,130		22,275			190,405		7,690		—			198,095
Depreciation and amortization expense		85,737		27,668			113,405		6,336		—			119,741
2023
Revenues	$	1,957,188	$	375,183		$	2,332,371	$	343,927	$	—		$	2,676,298
Less:
Cost of revenues		846,570		151,833			998,403		118,040		—			1,116,443
Engineering and development		257,387		68,668			326,055		44,538		—			370,593
Selling and marketing		162,068		107,157			269,225		50,131		—			319,356
General and administrative		77,786		56,483			134,269		25,104		—			159,373
Other segment items (1)(2)		114,873		45,294			160,167		26,657		(1,863	)		184,961
Income (loss) before taxes (2)		498,504		(54,252	)		444,252		79,457		1,863			525,572
Total assets (3)		1,388,842		737,323			2,126,165		191,055		1,169,605			3,486,824
Property additions		113,664		40,739			154,403		5,239		—			159,642
Depreciation and amortization expense		78,568		25,527			104,095		7,021		(230	)		110,886
2022
Revenues	$	2,350,603	$	403,138		$	2,753,741	$	401,053	$	251		$	3,155,045
Less:
Cost of revenues		970,972		161,383			1,132,355		125,522		—			1,257,877
Engineering and development		272,296		64,670			336,966		44,111		—			381,077
Selling and marketing		156,520		101,584			258,104		51,888		—			309,992
General and administrative		75,544		57,845			133,389		20,785		—			154,174
Other segment items (1)(2)		131,464		33,785			165,249		34,587		11,704			211,540
Income (loss) before taxes (2)		743,807		(16,129	)		727,678		124,160		(11,453	)		840,385
Total assets (3)		1,435,766		665,638			2,101,403		207,079		1,192,769			3,501,252
Property additions		126,899		25,711			152,610		10,639		—			163,249
Depreciation and amortization expense		76,922		25,339			102,261		7,836		578			110,675

(1)For each reportable segment, the other segment items category includes equity and variable compensation, acquired intangible assets amortization, and restructuring and other charges.

(2)Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, acquired intangible amortization, gain on the sale of a business, pension and postretirement plan actuarial gains (losses), legal and environmental fees, contingent consideration adjustments, acquisition and divestiture related expenses, contract termination settlement charge, and an expense for the modification of Teradyne's former chief executive officer's outstanding equity awards.

(3)Total assets are attributable to each segment. In 2023, Semiconductor Test includes $34.8 million of total assets classified as assets held for sale. See Note E: "Dispositions" for additional information. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets.

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

	2024		2023		2022
	(in thousands)
Revenues from customers (1):
Korea	$	695,669	$	394,690	$	544,816
Taiwan		601,997		384,842		626,424
China		375,186		314,899		491,798
United States		374,333		433,661		469,948
Europe		251,285		273,784		268,384
Japan		159,827		281,742		162,920
Singapore		90,113		116,969		99,503
Malaysia		62,376		89,197		142,203
Philippines		53,636		189,419		124,107
Thailand		49,268		91,818		137,356
Rest of the World		106,190		105,277		87,586
	$	2,819,880	$	2,676,298	$	3,155,045

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

In 2024, revenues from Samsung, a customer of our Semiconductor Test segment, accounted for 12.5% of our consolidated revenues. In 2023, revenues from Texas Instruments Inc., a customer of our Semiconductor Test segment, accounted for 10% of our 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.

Long-lived assets by geographic area:

	United States		Foreign (1)		Total
	(in thousands)
December 31, 2024	$	328,733	$	249,623	$	578,356
December 31, 2023 (2)	$	322,445	$	207,995	$	530,440

(1)As of December 31, 2024 and December 31, 2023, long-lived assets attributable to Denmark were $85.1 million and $78.1 million, respectively. Long-lived assets attributable to Singapore were $74.8 million as of December 31, 2024.

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