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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.