Segment, Geographic and Significant Customer Information

3 Months Ended

Mar. 30, 2025

Segment Reporting [Abstract]

Segment, Geographic and Significant Customer Information

U. SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

As of December 31, 2024, Teradyne had two reportable segments (Semiconductor Test and Robotics) and four operating segments (Semiconductor Test, System Test, wireless test systems and Robotics). Effective March 2025, Teradyne's Chief Operating Decision Maker ("CODM") has placed Regan Mills as President, Product Test, in order to streamline operating activities of Production Board Test, Defense/Aerospace, and wireless test systems. As a result, as of March 30, 2025, Teradyne has three reportable segments (Semiconductor Test, Robotics, and Product Test). As of March 30, 2025, each of Teradyne's reportable segments represents an individual operating segment. All prior period disclosures have been recast to conform to the current segment structure and presentation requirements.

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. The Product Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, and wireless test systems. 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 three months ended March 30, 2025 and March 31, 2024, is as follows:

	Semiconductor Test		Robotics			Product Test		Total Reportable Segments		Corporate and Eliminations			Consolidated
	(in thousands)
Three months ended March 30, 2025
Revenues	$	542,504	$	68,987		$	74,189	$	685,680	$	—		$	685,680
Less:
Cost of revenues		202,747		32,292			30,035		265,074		—			265,074
Engineering and development		80,211		15,855			11,539		107,605		—			107,605
Selling and marketing		51,697		24,514			11,737		87,948		—			87,948
General and administrative		26,552		9,865			4,969		41,386		1,763			43,149
Other segment items (1)(2)		25,495		23,638			7,273		56,406		6,474			62,880
Income (loss) before taxes (2)		155,802		(37,177	)		8,636		127,261		(8,237	)		119,024
Total assets (3)		1,396,660		742,621			205,840		2,345,121		1,360,716			3,705,837
Property additions		59,732		2,676			2,778		65,186		—			65,186
Depreciation and amortization expense		22,865		5,941			1,506		30,312		(10	)		30,302
Three months ended March 31, 2024
Revenues	$	434,770	$	87,654		$	77,395	$	599,819	$	—		$	599,819
Less:
Cost of revenues		192,894		34,453			28,278		255,625		—			255,625
Engineering and development		65,649		15,787			11,800		93,236		—			93,236
Selling and marketing		44,987		24,821			12,181		81,989		—			81,989
General and administrative		21,062		13,217			5,116		39,395		1,772			41,167
Other segment items (1)(2)		26,784		13,422			6,503		46,709		8,191			54,900
Income (loss) before taxes (2)		83,394		(14,046	)		13,517		82,865		(9,963	)		72,902
Total assets (3)		1,407,239		721,318			192,912		2,321,469		1,089,251			3,410,720
Property additions		36,554		5,713			1,756		44,023		—			44,023
Depreciation and amortization expense		19,871		6,431			1,749		28,051		69			28,120

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

(2)Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, severance charges, pension and postretirement plan actuarial gains (losses), acquisition and divestiture related expenses, ERP implementation related costs, and an expense for the modification of outstanding equity awards.

(3)Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities, and certain other assets.