Revenue

9 Months Ended

Sep. 29, 2019

Revenue from Contract with Customer [Abstract]

Revenue

E. REVENUE

For the three and nine months ended September 29, 2019, revenues recognized in accordance with ASC 606: “Revenue from Contracts with Customers” were $580.6 million and $1,635.5 million, respectively. For the three and nine months ended September 29, 2019, Teradyne also recognized $1.5 million and $4.9 million, respectively, of revenues from leases of Teradyne systems, which are accounted for outside of ASC 606.

For the three and nine months ended September 30, 2018, revenues recognized in accordance with ASC 606: “Revenue from Contracts with Customers” were $564.5 million and $1,571.0 million, respectively. For the three and nine months ended September 30, 2018, Teradyne also recognized $2.3 million and $10.2 million, respectively, of revenues from leases of Teradyne systems, which are accounted for outside of ASC 606.

Disaggregation of Revenue

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 29, 2019
	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		MiR		Energid
	(in thousands)
Americas
Point in time	$	6,307	$	3,464	$	22,861	$	2,232	$	2,165	$	16,294	$	2,820	$	—	$	5,621	$	(160	)	$	61,604
Over time		8,497		621		5,814		—		796		293		—		188		723		—			16,932
Europe, Middle East and Africa
Point in time		6,894		274		742		—		4,354		25,557		5,011		—		1,220		—			44,052
Over time		5,189		255		469		—		1,613		459		—		615		48		—			8,648
Asia Pacific
Point in time		259,909		63,483		99		22,696		6,751		15,575		1,800		—		33,032		—			403,345
Over time		37,680		3,874		299		1,496		830		280		—		—		1,545		—			46,004
Lease Revenue		1,290		—		—		—		88		—		—		—		75		—			1,453
Total	$	325,766	$	71,971	$	30,284	$	26,424	$	16,597	$	58,458	$	9,631	$	803	$	42,264	$	(160	)	$	582,038

	For the Three 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		MiR		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 29, 2019
	Semiconductor Test				System Test						Industrial Automation						Wireless Test		Corporate and Other			Consolidated
	SOC		Memory		Defense/ Aerospace		Storage Test		Production Board Test		Universal Robots		MiR		Energid
	(in thousands)
Americas
Point in time	$	21,830	$	19,574	$	54,870	$	7,528	$	6,760	$	48,529	$	9,152	$	—	$	12,961	$	(402	)	$	180,802
Over time		24,862		2,056		19,116		—		2,317		793		—		1,235		1,550		—			51,929
Europe, Middle East and Africa
Point in time		27,934		2,443		992		—		12,391		78,007		13,883		—		2,575		—			138,225
Over time		15,681		819		1,442		—		4,782		1,274		—		1,381		140		—			25,519
Asia Pacific
Point in time		727,035		143,163		525		66,974		17,235		48,284		6,208		—		91,029		—			1,100,453
Over time		113,158		10,447		1,391		5,860		2,526		786		—		221		4,146		—			138,535
Lease Revenue		4,487		—		—		—		225		—		—		—		140		—			4,852
Total	$	934,987	$	178,502	$	78,336	$	80,362	$	46,236	$	177,673	$	29,243	$	2,837	$	112,541	$	(402	)	$	1,640,315

	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		MiR		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

Contract Balances

During the three and nine months ended September 29, 2019, Teradyne recognized $14.2 million and $47.6 million, respectively, that was previously included within the deferred revenue and customer advances balances. During the three and nine months ended September 30, 2018, Teradyne recognized $24.5 million and $70.9 million, respectively, that was previously included within the deferred revenue and customer advances balances. This revenue primarily relates to undelivered hardware, extended warranties, training, application support, and post contract support. Each of these represents a distinct performance obligation. Teradyne expects to recognize 69% of the remaining performance obligation in the next 12 months, 26% in 1-3 years, and the remainder thereafter.

Accounts Receivable

Teradyne sells certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. Teradyne accounts for these transactions as sales of receivables and presents cash proceeds in operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreements were $113.4 million and $10.6 million for the nine months ended September 29, 2019 and September 30, 2018, respectively. Factoring fees for the sales of receivables are recorded in interest expense and are not material.