Revenue

3 Months Ended

Apr. 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 April 3, 2022 (1)
Timing of Revenue Recognition
Point in Time	$	323,456	$	88,723	$	105,288	$	83,182	$	16,534	$	210		$	48,429	$	(346	)	$	665,476
Over Time		63,129		7,033		13,380		2,102		674		487			3,089		—			89,894
Total	$	386,585	$	95,756	$	118,668	$	85,284	$	17,208	$	697		$	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		7,867		697			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	$	17,208	$	697		$	51,518	$	(346	)	$	755,370
For the Three Months Ended April 4, 2021 (1)
Timing of Revenue Recognition
Point in Time	$	364,190	$	101,892	$	119,314	$	64,007	$	14,064	$	(120	)	$	37,880	$	(143	)	$	701,084
Over Time		56,040		5,941		13,523		1,594		67		339			3,018		—			80,522
Total	$	420,230	$	107,833	$	132,837	$	65,601	$	14,131	$	219		$	40,898	$	(143	)	$	781,606
Geographical Market
Asia Pacific	$	387,236	$	104,049	$	99,520	$	17,833	$	3,447	$	—		$	33,532	$	—		$	645,617
Americas		20,779		3,420		27,659		18,153		5,153		219			5,769		(143	)		81,009
Europe, Middle East and Africa		12,215		364		5,658		29,615		5,531		—			1,597		—			54,980
Total	$	420,230	$	107,833	$	132,837	$	65,601	$	14,131	$	219		$	40,898	$	(143	)	$	781,606

(1) Includes $2.3 million and $3.1 million in 2022 and 2021, 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 3, 2022 and April 4, 2021, Teradyne recognized $35.0 million and $27.8 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 April 3, 2022, Teradyne has $1,417.4 million of unsatisfied performance obligations. Teradyne expects to recognize 89% of the remaining performance obligations in the next 12 months and 11% 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 3, 2022		December 31, 2021
	(in thousands)
Maintenance, service and training	$	83,212	$	81,826
Customer advances, undelivered elements and other		58,521		55,112
Extended warranty		65,726		64,168
Total deferred revenue and customer advances	$	207,459	$	201,106

Accounts Receivable

During the three months ended April 3, 2022 and April 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 April 3, 2022 and April 4, 2021, total trade accounts receivable sold under the factoring agreements were $19.4 million and $7.3 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.