Revenue

9 Months Ended

Oct. 03, 2021

Revenue from Contract with Customer [Abstract]

Revenue

E. REVENUE

Disaggregation of Revenue

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

	Semiconductor Test						Industrial Automation
	System on-a-Chip		Memory		System Test		Universal Robots		Mobile Industrial Robots		AutoGuide		Wireless Test		Corporate and Other			Total
	(in thousands)
For the Three Months Ended October 3, 2021 (1)
Timing of Revenue Recognition
Point in Time	$	508,747	$	105,454	$	88,155	$	76,008	$	12,351	$	226	$	65,409	$	(63	)	$	856,287
Over Time		66,270		7,761		14,450		1,742		607		80		3,304		—			94,214
Total	$	575,017	$	113,215	$	102,605	$	77,750	$	12,958	$	306	$	68,713	$	(63	)	$	950,501
Geographical Market
Asia Pacific	$	519,886	$	110,362	$	62,757	$	19,654	$	2,788	$	—	$	54,344	$	—		$	769,791
Americas		29,119		2,281		34,560		23,429		5,015		306		11,352		(63	)		105,999
Europe, Middle East and Africa		26,012		572		5,288		34,667		5,155		—		3,017		—			74,711
Total	$	575,017	$	113,215	$	102,605	$	77,750	$	12,958	$	306	$	68,713	$	(63	)	$	950,501
For the Three Months Ended September 27, 2020 (1)
Timing of Revenue Recognition
Point in Time	$	393,717	$	137,929	$	101,045	$	51,523	$	10,175	$	4,076	$	37,901	$	(41	)	$	736,325
Over Time		55,988		4,507		17,124		1,686		59		1,192		2,603		—			83,159
Total	$	449,705	$	142,436	$	118,169	$	53,209	$	10,234	$	5,268	$	40,504	$	(41	)	$	819,484
Geographical Market
Asia Pacific	$	420,821	$	137,286	$	78,534	$	14,471	$	1,566	$	—	$	33,865	$	—		$	686,543
Americas		17,678		3,730		35,140		16,527		3,981		5,268		5,211		(41	)		87,494
Europe, Middle East and Africa		11,206		1,420		4,495		22,211		4,687		—		1,428		—			45,447
Total	$	449,705	$	142,436	$	118,169	$	53,209	$	10,234	$	5,268	$	40,504	$	(41	)	$	819,484
For the Nine Months Ended October 3, 2021 (2)
Timing of Revenue Recognition
Point in Time	$	1,548,895	$	291,578	$	295,666	$	214,427	$	41,506	$	106	$	154,908	$	(352	)	$	2,546,734
Over Time		188,022		21,776		44,595		5,001		1,483		628		9,596		—			271,101
Total	$	1,736,917	$	313,354	$	340,261	$	219,428	$	42,989	$	734	$	164,504	$	(352	)	$	2,817,835
Geographical Market
Asia Pacific	$	1,618,117	$	301,562	$	223,507	$	55,531	$	8,674	$	—	$	133,678	$	—		$	2,341,069
Americas		71,562		9,373		98,475		66,390		17,065		734		24,228		(352	)		287,475
Europe, Middle East and Africa		47,238		2,419		18,279		97,507		17,250		—		6,598		—			189,291
Total	$	1,736,917	$	313,354	$	340,261	$	219,428	$	42,989	$	734	$	164,504	$	(352	)	$	2,817,835
For the Nine Months Ended September 27, 2020 (2)
Timing of Revenue Recognition
Point in Time	$	1,261,468	$	298,150	$	259,498	$	140,829	$	30,468	$	8,608	$	125,304	$	(294	)	$	2,124,031
Over Time		162,159		14,000		46,553		5,628		176		2,083		7,870		—			238,469
Total	$	1,423,627	$	312,150	$	306,051	$	146,457	$	30,644	$	10,691	$	133,174	$	(294	)	$	2,362,500
Geographical Market
Asia Pacific	$	1,330,463	$	296,679	$	197,208	$	39,665	$	4,391	$	—	$	113,576	$	—		$	1,981,982
Americas		51,315		11,481		91,924		42,634		9,836		10,691		15,253		(294	)		232,840
Europe, Middle East and Africa		41,849		3,990		16,919		64,158		16,417		—		4,345		—			147,678
Total	$	1,423,627	$	312,150	$	306,051	$	146,457	$	30,644	$	10,691	$	133,174	$	(294	)	$	2,362,500

(1) Includes $3.8 million and $1.7 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”

(2) Includes $11.1 million and $6.1 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers.”

Contract Balances

During the three and nine months ended October 3, 2021, Teradyne recognized $32.9 million and $82.5 million, respectively, that was previously included within the deferred revenue and customer advances balances at the beginning of the period. During the three and nine months ended September 27, 2020, Teradyne recognized $17.6 million and $78.2 million, respectively, that was previously included within the deferred revenue and customer advances balances at the beginning of the period. This revenue primarily relates to undelivered hardware, extended warranties, training, application support, and post contract support. Each of these represents a distinct performance obligation. As of October 3, 2021, Teradyne has $1,293.0 million of unsatisfied performance obligations. Teradyne expects to recognize 94% of the remaining performance obligations in the next 12 months, 5% in 1-3 years and 1% beyond 3 years.

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 as cash provided by operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreements were $66.9 million and $16.5 million for the three months ended October 3, 2021 and September 27, 2020, respectively, and $81.7 million and $113.5 million for the nine months ended October 3, 2021 and September 27, 2020, respectively. Factoring fees for the sales of receivables were recorded in interest expense and were not material.