Accounting Policies (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2018
	Semiconductor Test				System Test						Industrial Automation						Wireless Test		Corporate and Other			Consolidated
	System on a chip (“SOC”)		Memory		Defense/ Aerospace		Storage Test		Production Board Test		Universal Robots		Mobile Industrial Robots		Energid
			(in thousands)
Americas
Point in Time	$	8,866	$	4,600	$	15,423	$	—	$	2,625	$	17,834	$	1,810	$	104	$	3,820	$	(272	)	$	54,810
Over Time		8,810		686		6,037		—		789		190		—		167		146		—			16,825
Europe, Middle East and Africa
Point in Time		9,728		2,080		161		—		3,223		26,445		2,647		—		1,504		—			45,788
Over Time		5,336		301		505		—		1,510		282		—		457		318		—			8,709
Asia Pacific
Point in Time		258,898		76,429		931		9,916		5,201		13,656		2,087		10		26,851		—			393,979
Over Time		36,722		2,794		212		2,116		885		145		—		79		1,494		—			44,447
Lease Revenue		2,047		—		—		—		72		—		—		—		171		—			2,290
Total	$	330,407	$	86,890	$	23,269	$	12,032	$	14,305	$	58,552	$	6,544	$	817	$	34,304	$	(272	)	$	566,848

	For the Nine Months Ended September 30, 2018
	Semiconductor Test				System Test						Industrial Automation						Wireless Test		Corporate and Other			Consolidated
	SOC		Memory		Defense/ Aerospace		Storage Test		Production Board Test		Universal Robots		Mobile Industrial Robots		Energid
	(in thousands)
Americas
Point in Time	$	30,577	$	10,291	$	42,276	$	284	$	5,814	$	48,025	$	3,009	$	104	$	13,515	$	(602	)	$	153,293
Over Time		26,536		2,092		18,462		—		2,342		431		—		578		379		—			50,820
Europe, Middle East and Africa
Point in Time		32,079		3,066		2,104		—		12,109		75,631		4,647		—		2,570		—			132,206
Over Time		16,240		824		1,596		—		4,781		675		—		732		802		—			25,650
Asia Pacific
Point in Time		702,097		202,336		1,417		51,863		10,804		39,135		3,397		10		68,180		—			1,079,239
Over Time		108,011		7,401		678		5,077		2,364		350		—		79		5,893		—			129,853
Lease Revenue		9,162		—		—		—		337		—		—		—		684		—			10,183
Total	$	924,702	$	226,010	$	66,533	$	57,224	$	38,551	$	164,247	$	11,053	$	1,503	$	92,023	$	(602	)	$	1,581,244

Information about Contract Liabilities

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

	September 30, 2018		January 1, 2018 (as adjusted)		Increase/ Decrease
	(in thousands)
Deferred revenue and customer advances	$	77,953	$	76,638	$	1,315
Long-term deferred revenue and customer advances		29,387		20,848		8,539

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:

	September 30, 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	$	352,476		$	(31,205	)	$	321,271
Inventories, net		154,705			11,708			166,413
Deferred tax assets		70,772			(3,684	)		67,088
Liabilities
Deferred revenue and customer advances	$	77,953		$	(4,825	)	$	73,128
Income taxes payable		24,603			(4,271	)		20,332
Long-term deferred revenue and customer advances		29,387			(9,968	)		19,419
Shareholders’ equity
Accumulated deficit	$	(23,243	)	$	(4,117	)	$	(27,360	)

Condensed Consolidated Statement of Operation:

	For the Three Months ended September 30,  2018
	As Reported		Adjustments to Recognize under Legacy GAAP			Legacy GAAP
	(in thousands, except per share amount)
Total revenues	$	566,848	$	59,738		$	626,586
Total cost of revenues		233,155		21,702			254,857
Income tax provision		20,863		4,771			25,634
Net income		119,981		33,265			153,246
Net income per common share:
Basic	$	0.65	$	0.18		$	0.83
Diluted	$	0.63	$	0.17		$	0.80
	For the Nine Months ended September, 2018
	As Reported		Adjustments to Recognize under Legacy GAAP			Legacy GAAP
	(in thousands, except per share amount)
Total revenues	$	1,581,244	$	(32,668	)	$	1,548,576
Total cost of revenues		670,385		(11,708	)		658,677
Income tax provision		48,684		(4,163	)		44,521
Net income		307,991		(16,797	)		291,194
Net income per common share:
Basic	$	1.62	$	(0.09	)	$	1.53
Diluted	$	1.57	$	(0.09	)	$	1.48