Accounting Policies (Tables)

3 Months Ended

Apr. 01, 2018

Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition

The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition.

	Semiconductor Test				System Test						Industrial Automation		Wireless Test		Corporate and Other			Consolidated
	SOC(1)		Memory		Defense/ Aerospace		Storage Test		Production Board Test
	(in thousands)
Three Months Ended April 1, 2018
Americas
Point in Time	$	9,600	$	2,862	$	11,597	$	279	$	1,760	$	14,373	$	4,979	$	(221	)	$	45,229
Over Time		8,791		696		6,188		—		757		89		112		—			16,633
Europe, Middle East and Africa
Point in Time		12,125		139		1,497		—		4,037		22,573		1,041		—			41,412
Over Time		5,214		269		551		—		1,559		143		227		—			7,963
Asia Pacific
Point in Time		224,851		66,273		101		10,122		1,861		11,583		13,664		—			328,455
Over Time		36,338		2,323		208		1,533		735		73		2,296		—			43,506
Lease Revenue		3,847		—		—		—		234		—		188		—			4,269
Total	$	300,766	$	72,562	$	20,142	$	11,934	$	10,943	$	48,834	$	22,507	$	(221	)	$	487,467

(1) System on a chip (“SOC”)

Information about Contract Liabilities

The following table provides information about contract liabilities. Teradyne does not have material contract assets on the balance sheet.

	April 1, 2018		January 1, 2018 (as adjusted)		Increase
	(in thousands)
Deferred revenue and customer advances	$	85,892	$	76,638	$	9,254
Long-term deferred revenue and customer advances		21,726		20,848		878

ASU 2014-09

Summarize Impact of ASC 606 to Consolidated Financial Statements

The following tables summarize the impact of ASC 606 to Teradyne’s consolidated financial statements. Differences are the result of timing differences between the recognition of revenue under ASC 606 and ASC 605 primarily with respect to software transactions deferred due to lack of vendor specific objective evidence of price under ASC 605 and Teradyne’s assessment of acceptance under ASC 606. Under Legacy GAAP Teradyne did not recognize revenue prior to acceptance if payment, title, or risk of loss was tied to acceptance. Under ASC 606, Teradyne recognizes revenue prior to receipt of acceptance if acceptance is deemed a formality.

Condensed Consolidated Balance Sheet:

	April 1, 2018
	As reported		Adjustments to Recognize under Legacy GAAP			Legacy GAAP
	(in thousands)
ASSETS
Accounts receivable, less allowance for doubtful accounts	$	413,978	$	(67,728	)	$	346,250
Inventories, net		131,857		27,749			159,606
Deferred tax assets		77,705		2,923			80,628
LIABILITIES
Deferred revenue and customer advances	$	85,892	$	4,990		$	90,882
Income taxes payable		34,828		(5,167	)		29,661
Long-term deferred revenue and customer advances		21,726		9,178			30,904
SHAREHOLDERS’ EQUITY
Retained earnings	$	216,120	$	(46,057	)	$	170,063

Condensed Consolidated Statement of Operation:

	Three months ended April 1, 2018
	As Reported		Adjustments to Recognize under Legacy GAAP			Legacy GAAP
	(in thousands except per share amounts)
Total revenues	$	487,467	$	(65,642	)	$	421,825
Total cost of revenues		217,635		(27,749	)		189,886
Income tax provision		8,846		(4,515	)		4,331
Net income		86,974		(33,378	)		53,596
Net income per common share:
Basic	$	0.45	$	(0.17	)	$	0.27
Diluted	$	0.43	$	(0.16	)	$	0.26