Revenue

6 Months Ended

Jul. 03, 2022

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 Eliminations			Total
	(in thousands)
For the Three Months Ended July 3, 2022 (1)
Timing of Revenue Recognition
Point in Time	$	395,211	$	74,790	$	118,692	$	80,409	$	16,730	$	1,071		$	60,765	$	(193	)	$	747,475
Over Time		64,253		7,094		16,010		2,104		668		73			3,089		—			93,291
Total	$	459,464	$	81,884	$	134,702	$	82,513	$	17,398	$	1,144		$	63,854	$	(193	)	$	840,766
Geographical Market
Asia Pacific	$	413,537	$	78,996	$	95,584	$	17,357	$	5,317	$	—		$	44,106	$	—		$	654,897
Americas		28,714		2,552		33,409		27,732		6,085		1,144			17,460		(193	)		116,903
Europe, Middle East and Africa		17,213		336		5,709		37,424		5,996		—			2,288		—			68,966
Total	$	459,464	$	81,884	$	134,702	$	82,513	$	17,398	$	1,144		$	63,854	$	(193	)	$	840,766
For the Three Months Ended July 4, 2021 (1)
Timing of Revenue Recognition
Point in Time	$	675,958	$	84,232	$	88,197	$	74,412	$	15,091	$	—		$	51,619	$	(146	)	$	989,363
Over Time		65,712		8,074		16,622		1,665		809		209			3,274		—			96,365
Total	$	741,670	$	92,306	$	104,819	$	76,077	$	15,900	$	209		$	54,893	$	(146	)	$	1,085,728
Geographical Market
Asia Pacific	$	710,995	$	87,151	$	61,230	$	18,044	$	2,439	$	—		$	45,802	$	—		$	925,661
Americas		21,664		3,672		36,256		24,808		6,897		209			7,107		(146	)		100,467
Europe, Middle East and Africa		9,011		1,483		7,333		33,225		6,564		—			1,984		—			59,600
Total	$	741,670	$	92,306	$	104,819	$	76,077	$	15,900	$	209		$	54,893	$	(146	)	$	1,085,728
For the Six Months Ended July 3, 2022 (2)
Timing of Revenue Recognition
Point in Time	$	718,666	$	163,513	$	223,981	$	163,591	$	33,264	$	1,281		$	109,194	$	(539	)	$	1,412,951
Over Time		127,382		14,127		29,390		4,206		1,342		560			6,178		—			183,185
Total	$	846,048	$	177,640	$	253,371	$	167,797	$	34,606	$	1,841		$	115,372	$	(539	)	$	1,596,136
Geographical Market
Asia Pacific	$	754,277	$	172,147	$	169,369	$	35,978	$	7,909	$	—		$	79,052	$	—		$	1,218,732
Americas		58,428		4,598		70,017		55,880		13,952		1,841			27,147		(539	)		231,324
Europe, Middle East and Africa		33,343		895		13,985		75,939		12,745		—			9,173		—			146,080
Total	$	846,048	$	177,640	$	253,371	$	167,797	$	34,606	$	1,841		$	115,372	$	(539	)	$	1,596,136
For the Six Months Ended July 4, 2021 (2)
Timing of Revenue Recognition
Point in Time	$	1,040,148	$	186,124	$	207,511	$	138,419	$	29,155	$	(120	)	$	89,499	$	(289	)	$	1,690,447
Over Time		121,752		14,015		30,145		3,259		876		548			6,292		—			176,887
Total	$	1,161,900	$	200,139	$	237,656	$	141,678	$	30,031	$	428		$	95,791	$	(289	)	$	1,867,334
Geographical Market
Asia Pacific	$	1,098,231	$	191,200	$	160,750	$	35,877	$	5,886	$	—		$	79,334	$	—		$	1,571,278
Americas		42,443		7,092		63,915		42,961		12,050		428			12,876		(289	)		181,476
Europe, Middle East and Africa		21,226		1,847		12,991		62,840		12,095		—			3,581		—			114,580
Total	$	1,161,900	$	200,139	$	237,656	$	141,678	$	30,031	$	428		$	95,791	$	(289	)	$	1,867,334

(1) Includes $1.9 million and $4.2 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”

(2) Includes $4.2 million and $7.3 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers.”

Contract Balances

During the three and six months ended July 3, 2022, Teradyne recognized $25.1 million and $60.2 million, respectively, that was previously included within the deferred revenue and customer advances balances at the beginning of the period. During the three and six months ended July 4, 2021, Teradyne recognized $22.0 million and $49.6 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. As of July 3, 2022, Teradyne has $1,574 million of unsatisfied performance obligations. Teradyne expects to recognize 90% of the remaining performance obligations in the next 12 months and 10% in 1-3 years.

Deferred revenue and customer advances consist of the following at July 3, 2022 and December 31, 2021, and are included in short and long-term deferred revenue and customer advances on the balance sheet:

	July 3,		December 31,
	2022		2021
	(in thousands)
Maintenance, service and training	$	83,464	$	81,826
Extended warranty		65,791		64,168
Customer advances, undelivered elements and other		64,229		55,112
Total deferred revenue and customer advances	$	213,484	$	201,106

Accounts Receivable

During the three and six months ended July 3, 2022 and July 4, 2021, Teradyne sold certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. During the three months ended July 3, 2022 and July 4, 2021, total trade accounts receivable sold under the factoring agreements were $37.6 million and $7.6 million, respectively. During the six months ended July 3, 2022 and July 4, 2021, total trade accounts receivable sold under the factoring agreements were $57.1 million and $14.9 million, respectively. Factoring fees for the sales of receivables were recorded in interest expense and were not material. Teradyne accounted for these transactions as sales of receivables and presented cash proceeds as cash provided by operating activities in the consolidated statements of cash flows.