Accounting Policies (Tables)

6 Months Ended

Jul. 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.

	For the Three Months Ended July 1, 2018
	Semiconductor Test				System Test						Industrial Automation				Wireless Test		Corporate and Eliminations			Consolidated
	System on a chip (“SOC”)		Memory		Defense/ Aerospace		Storage Test		Production Board Test		Universal Robots		Mobile Industrial Robots
			(in thousands)
Americas
Point in time	$	12,111	$	2,827	$	15,256	$	5	$	1,429	$	16,053	$	1,199	$	4,716	$	(110	)	$	53,486
Over time		8,934		710		6,237		—		795		327		—		122		—			17,125
Europe, Middle East and Africa
Point in time		10,227		847		447		—		4,849		26,616		2,000		26		—			45,012
Over time		5,689		254		539		—		1,713		526		—		257		—			8,978
Asia Pacific
Point in time		218,352		59,633		385		31,824		3,741		13,895		1,310		27,663		—			356,803
Over time		34,951		2,285		258		1,428		744		131		—		2,103		—			41,900
Lease revenue		3,268		—		—		—		32		—		—		325		—			3,625
Total	$	293,532	$	66,556	$	23,122	$	33,257	$	13,303	$	57,548	$	4,509	$	35,212	$	(110	)	$	526,929

	For the Six Months Ended July 1, 2018
	Semiconductor Test				System Test						Industrial Automation				Wireless Test		Corporate and Eliminations			Consolidated
	SOC		Memory		Defense/ Aerospace		Storage Test		Production Board Test		Universal Robots		Mobile Industrial Robots
	(in thousands)
Americas
Point in time	$	21,711	$	5,691	$	26,853	$	284	$	3,189	$	30,190	$	1,199	$	9,695	$	(332	)	$	98,480
Over time		17,517		1,406		12,425		—		1,552		652		—		233		—			33,785
Europe, Middle East and Africa
Point in time		22,352		986		1,943		—		8,886		49,190		2,000		1,066		—			86,423
Over time		10,888		523		1,090		—		3,272		668		—		484		—			16,925
Asia Pacific
Point in time		446,543		125,904		487		41,946		5,603		25,478		1,310		41,329		—			688,600
Over time		68,173		4,607		466		2,961		1,479		204		—		4,399		—			82,289
Lease revenue		7,115		—		—		—		266		—		—		513		—			7,894
Total	$	594,299	$	139,117	$	43,264	$	45,191	$	24,247	$	106,382	$	4,509	$	57,719	$	(332	)	$	1,014,396

Information about Contract Liabilities

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

	July 1, 2018		January 1, 2018 (as adjusted)		Increase/ (Decrease)
	(in thousands)
Deferred revenue and customer advances	$	82,491	$	76,638	$	5,853
Long-term deferred revenue and customer advances		25,375		20,848		4,527

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:

	July 1, 2018
	As Reported		Adjustments to Recognize Under Legacy GAAP			Legacy GAAP
	(in thousands, except per share amount)
ASSETS
Accounts receivable, less allowance for doubtful accounts	$	454,122	$	(95,102	)	$	359,020
Inventories, net		135,550		33,830			169,380
Deferred tax assets		73,574		(3,494	)		70,080
LIABILITIES
Deferred revenue and customer advances	$	82,491	$	(7,254	)	$	75,237
Income taxes payable		32,226		(9,002	)		23,224
Long-term deferred revenue and customer advances		25,375		(9,836	)		15,539
SHAREHOLDERS’ EQUITY
Retained earnings	$	74,270	$	(38,674	)	$	35,596

Condensed Consolidated Statement of Operation:

	For the Three Months ended July 1, 2018
	As Reported		Adjustments to Recognize Under Legacy GAAP			Legacy GAAP
	(in thousands, except per share amount)
Total revenues	$	526,929	$	(28,626	)	$	498,303
Total cost of revenues		219,595		(6,081	)		213,514
Income tax provision		18,975		(4,569	)		14,406
Net income		101,037		(17,976	)		83,061
Net income per common share:
Basic	$	0.53	$	(0.09	)	$	0.44
Diluted	$	0.52	$	(0.09	)	$	0.43

	For the Six Months ended July 1, 2018
	As Reported		Adjustments to Recognize Under Legacy GAAP			Legacy GAAP
	(in thousands, except per share amount)
Total revenues	$	1,014,396	$	(94,268	)	$	920,128
Total cost of revenues		437,230		(33,830	)		403,400
Income tax provision		27,821		(9,084	)		18,737
Net income		188,010		(51,354	)		136,656
Net income per common share:
Basic	$	0.97	$	(0.27	)	$	0.71
Diluted	$	0.94	$	(0.26	)	$	0.69