Revenue

3 Months Ended

Apr. 02, 2023

Revenue from Contract with Customer [Abstract]

Revenue

D. 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						Robotics
	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 April 2, 2023 (1)
Timing of Revenue Recognition
Point in Time	$	273,275	$	61,258	$	56,857	$	70,029	$	15,959	$	35,363	$	—		$	512,741
Over Time		73,559		6,917		17,774		2,008		1,218		3,312		—			104,788
Total	$	346,834	$	68,175	$	74,631	$	72,037	$	17,177	$	38,675	$	—		$	617,529
Geographical Market
Asia Pacific	$	283,259	$	63,695	$	39,590	$	13,217	$	1,502	$	23,231	$	—		$	424,494
Americas		41,568		2,944		28,980		20,447		11,806		12,846		—			118,591
Europe, Middle East and Africa		22,007		1,536		6,061		38,373		3,869		2,598		—			74,444
Total	$	346,834	$	68,175	$	74,631	$	72,037	$	17,177	$	38,675	$	—		$	617,529
For the Three Months Ended April 3, 2022 (1)
Timing of Revenue Recognition
Point in Time	$	323,456	$	88,723	$	105,288	$	83,182	$	16,744	$	48,429	$	(346	)	$	665,476
Over Time		63,129		7,033		13,380		2,102		1,161		3,089		—			89,894
Total	$	386,585	$	95,756	$	118,668	$	85,284	$	17,905	$	51,518	$	(346	)	$	755,370
Geographical Market
Asia Pacific	$	340,741	$	93,151	$	73,784	$	18,621	$	2,592	$	34,946	$	—		$	563,835
Americas		29,714		2,046		36,608		28,148		8,564		9,687		(346	)		114,421
Europe, Middle East and Africa		16,130		559		8,276		38,515		6,749		6,885		—			77,114
Total	$	386,585	$	95,756	$	118,668	$	85,284	$	17,905	$	51,518	$	(346	)	$	755,370

(1) Includes $1.3 million and $2.3 million in 2023 and 2022, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”

Contract Balances

During the three months ended April 2, 2023 and April 3, 2022, Teradyne recognized $50.7 million and $35.0 million, respectively, that was 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 April 2, 2023, Teradyne had $1,240.7 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 and are included in short and long-term deferred revenue and customer advances on the balance sheet:

	April 2, 2023		December 31, 2022
	(in thousands)
Maintenance, service and training	$	70,609	$	78,089
Extended warranty		49,343		56,180
Customer advances, undelivered elements and other		41,200		59,147
Total deferred revenue and customer advances	$	161,152	$	193,416

Accounts Receivable

During the three months ended April 2, 2023 and April 3, 2022, 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 April 2, 2023 and April 3, 2022, total trade accounts receivable sold under the factoring agreements were $34.2 million and $19.4 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.