Revenue

9 Months Ended

Oct. 02, 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. During the three months ended October 2, 2022 Teradyne combined Mobile Industrial Robots and AutoGuide into one business unit. Revenues for all periods shown below have been combined accordingly.

	Semiconductor Test						Industrial Automation
	System on-a-Chip		Memory		System Test		Universal Robots		Mobile Industrial Robots		Wireless Test		Corporate and Eliminations			Total
	(in thousands)
For the Three Months Ended October 2, 2022 (1)
Timing of Revenue Recognition
Point in Time	$	383,801	$	117,943	$	93,248	$	71,300	$	15,025	$	42,885	$	—		$	724,202
Over Time		66,614		7,346		22,906		2,062		680		3,263		—			102,871
Total	$	450,415	$	125,289	$	116,154	$	73,362	$	15,705	$	46,148	$	—		$	827,073
Geographical Market
Asia Pacific	$	399,323	$	122,839	$	73,768	$	18,850	$	2,917	$	34,420	$	—		$	652,117
Americas		31,719		2,129		35,865		26,515		8,877		9,481		—			114,586
Europe, Middle East and Africa		19,373		321		6,521		27,997		3,911		2,247		—			60,370
Total	$	450,415	$	125,289	$	116,154	$	73,362	$	15,705	$	46,148	$	—		$	827,073
For the Three Months Ended October 3, 2021 (1)
Timing of Revenue Recognition
Point in Time	$	508,747	$	105,454	$	88,155	$	76,008	$	12,577	$	65,409	$	(63	)	$	856,287
Over Time		66,270		7,761		14,450		1,742		687		3,304		—			94,214
Total	$	575,017	$	113,215	$	102,605	$	77,750	$	13,264	$	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		5,321		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	$	13,264	$	68,713	$	(63	)	$	950,501
For the Nine Months Ended October 2, 2022 (2)
Timing of Revenue Recognition
Point in Time	$	1,102,467	$	281,456	$	317,230	$	234,352	$	49,570	$	152,079	$	—		$	2,137,154
Over Time		193,996		21,473		52,295		6,268		2,582		9,441		—			286,055
Total	$	1,296,463	$	302,929	$	369,525	$	240,620	$	52,152	$	161,520	$	—		$	2,423,209
Geographical Market
Asia Pacific	$	1,153,599	$	294,986	$	243,135	$	54,828	$	10,826	$	113,472	$	—		$	1,870,846
Americas		90,148		6,727		105,884		81,857		24,670		36,628		—			345,914
Europe, Middle East and Africa		52,716		1,216		20,506		103,935		16,656		11,420		—			206,449
Total	$	1,296,463	$	302,929	$	369,525	$	240,620	$	52,152	$	161,520	$	—		$	2,423,209

	Semiconductor Test						Industrial Automation
	System on-a-Chip		Memory		System Test		Universal Robots		Mobile Industrial Robots		Wireless Test		Corporate and Eliminations			Total
	(in thousands)
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	$	41,612	$	154,908	$	(352	)	$	2,546,734
Over Time		188,022		21,776		44,595		5,001		2,111		9,596		—			271,101
Total	$	1,736,917	$	313,354	$	340,261	$	219,428	$	43,723	$	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		17,799		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	$	43,723	$	164,504	$	(352	)	$	2,817,835

(1) Includes $1.8 million and $3.8 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 $5.9 million and $11.1 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 nine months ended October 2, 2022, Teradyne recognized $27.1 million and $87.3 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 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. 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 2, 2022, Teradyne has $1,506 million of unsatisfied performance obligations. Teradyne expects to recognize 88% of the remaining performance obligations in the next 12 months and 12% in 1-3 years.

Deferred revenue and customer advances consist of the following at October 2, 2022 and December 31, 2021, and are included in short and long-term deferred revenue and customer advances on the balance sheet:

	October 2, 2022		December 31, 2021
	(in thousands)
Maintenance, service and training	$	76,310	$	81,826
Extended warranty		61,920		64,168
Customer advances, undelivered elements and other		53,849		55,112
Total deferred revenue and customer advances	$	192,079	$	201,106

Accounts Receivable

During the three and nine months ended October 2, 2022 and October 3, 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 October 2, 2022 and October 3, 2021, total trade accounts receivable sold under the factoring agreements were $15.9 million and $66.9 million, respectively. During the nine months ended October 2, 2022 and October 3, 2021, total trade accounts receivable sold under the factoring agreements were $73.0 million and $81.7 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.