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Accounting Policies (Tables) | 6 Months Ended
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Jul. 01, 2018
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition | The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition.
|  | For the Three Months Ended July 1, 2018 |
|  | Semiconductor Test |  |  | System Test |  |  | Industrial Automation |  |  | Wireless Test |  |  | Corporate and Eliminations |  |  | Consolidated |
|  | System on a chip (“SOC”) |  |  | Memory |  |  | Defense/ Aerospace |  |  | Storage Test |  |  | Production Board Test |  |  | Universal Robots |  |  | Mobile Industrial Robots |  |  |  |  |  |  |  |  |  |
|  |  |  |  | (in thousands) |
Americas |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Point in time |  | $ | 12,111 |  |  | $ | 2,827 |  |  | $ | 15,256 |  |  | $ | 5 |  |  | $ | 1,429 |  |  | $ | 16,053 |  |  | $ | 1,199 |  |  | $ | 4,716 |  |  | $ | (110 | ) |  | $ | 53,486 |
Over time |  |  | 8,934 |  |  |  | 710 |  |  |  | 6,237 |  |  |  | — |  |  |  | 795 |  |  |  | 327 |  |  |  | — |  |  |  | 122 |  |  |  | — |  |  |  | 17,125 |
Europe, Middle East and Africa |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Point in time |  |  | 10,227 |  |  |  | 847 |  |  |  | 447 |  |  |  | — |  |  |  | 4,849 |  |  |  | 26,616 |  |  |  | 2,000 |  |  |  | 26 |  |  |  | — |  |  |  | 45,012 |
Over time |  |  | 5,689 |  |  |  | 254 |  |  |  | 539 |  |  |  | — |  |  |  | 1,713 |  |  |  | 526 |  |  |  | — |  |  |  | 257 |  |  |  | — |  |  |  | 8,978 |
Asia Pacific |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Point in time |  |  | 218,352 |  |  |  | 59,633 |  |  |  | 385 |  |  |  | 31,824 |  |  |  | 3,741 |  |  |  | 13,895 |  |  |  | 1,310 |  |  |  | 27,663 |  |  |  | — |  |  |  | 356,803 |
Over time |  |  | 34,951 |  |  |  | 2,285 |  |  |  | 258 |  |  |  | 1,428 |  |  |  | 744 |  |  |  | 131 |  |  |  | — |  |  |  | 2,103 |  |  |  | — |  |  |  | 41,900 |
Lease revenue |  |  | 3,268 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 32 |  |  |  | — |  |  |  | — |  |  |  | 325 |  |  |  | — |  |  |  | 3,625 |
Total |  | $ | 293,532 |  |  | $ | 66,556 |  |  | $ | 23,122 |  |  | $ | 33,257 |  |  | $ | 13,303 |  |  | $ | 57,548 |  |  | $ | 4,509 |  |  | $ | 35,212 |  |  | $ | (110 | ) |  | $ | 526,929 |
|  | For the Six Months Ended July 1, 2018 |
|  | Semiconductor Test |  |  | System Test |  |  | Industrial Automation |  |  | Wireless Test |  |  | Corporate and Eliminations |  |  | Consolidated |
|  | SOC |  |  | Memory |  |  | Defense/ Aerospace |  |  | Storage Test |  |  | Production Board Test |  |  | Universal Robots |  |  | Mobile Industrial Robots |  |  |  |  |  |  |  |  |  |
|  | (in thousands) |
Americas |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Point in time |  | $ | 21,711 |  |  | $ | 5,691 |  |  | $ | 26,853 |  |  | $ | 284 |  |  | $ | 3,189 |  |  | $ | 30,190 |  |  | $ | 1,199 |  |  | $ | 9,695 |  |  | $ | (332 | ) |  | $ | 98,480 |
Over time |  |  | 17,517 |  |  |  | 1,406 |  |  |  | 12,425 |  |  |  | — |  |  |  | 1,552 |  |  |  | 652 |  |  |  | — |  |  |  | 233 |  |  |  | — |  |  |  | 33,785 |
Europe, Middle East and Africa |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Point in time |  |  | 22,352 |  |  |  | 986 |  |  |  | 1,943 |  |  |  | — |  |  |  | 8,886 |  |  |  | 49,190 |  |  |  | 2,000 |  |  |  | 1,066 |  |  |  | — |  |  |  | 86,423 |
Over time |  |  | 10,888 |  |  |  | 523 |  |  |  | 1,090 |  |  |  | — |  |  |  | 3,272 |  |  |  | 668 |  |  |  | — |  |  |  | 484 |  |  |  | — |  |  |  | 16,925 |
Asia Pacific |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Point in time |  |  | 446,543 |  |  |  | 125,904 |  |  |  | 487 |  |  |  | 41,946 |  |  |  | 5,603 |  |  |  | 25,478 |  |  |  | 1,310 |  |  |  | 41,329 |  |  |  | — |  |  |  | 688,600 |
Over time |  |  | 68,173 |  |  |  | 4,607 |  |  |  | 466 |  |  |  | 2,961 |  |  |  | 1,479 |  |  |  | 204 |  |  |  | — |  |  |  | 4,399 |  |  |  | — |  |  |  | 82,289 |
Lease revenue |  |  | 7,115 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 266 |  |  |  | — |  |  |  | — |  |  |  | 513 |  |  |  | — |  |  |  | 7,894 |
Total |  | $ | 594,299 |  |  | $ | 139,117 |  |  | $ | 43,264 |  |  | $ | 45,191 |  |  | $ | 24,247 |  |  | $ | 106,382 |  |  | $ | 4,509 |  |  | $ | 57,719 |  |  | $ | (332 | ) |  | $ | 1,014,396 |
Information about Contract Liabilities | The following table provides information about contract liabilities. Teradyne does not have material contract assets on the balance sheet.
|  | July 1, 2018 |  |  | January 1, 2018 (as adjusted) |  |  | Increase/ (Decrease) |
|  | (in thousands) |
Deferred revenue and customer advances |  | $ | 82,491 |  |  | $ | 76,638 |  |  | $ | 5,853 |
Long-term deferred revenue and customer advances |  |  | 25,375 |  |  |  | 20,848 |  |  |  | 4,527 |
ASU 2014-09 |
Summarize Impact of ASC 606 to Consolidated Financial Statements | The following tables summarize the impact of ASC 606 to Teradyne’s consolidated financial statements. Differences are the result of timing differences between the recognition of revenue under ASC 606 and ASC 605 primarily with respect to software transactions deferred due to lack of vendor specific objective evidence of price under ASC 605 and Teradyne’s assessment of acceptance under ASC 606. Under Legacy GAAP, Teradyne did not recognize revenue prior to acceptance if payment, title, or risk of loss was tied to acceptance. Under ASC 606, Teradyne recognizes revenue prior to receipt of acceptance if acceptance is deemed a formality. Condensed Consolidated Balance Sheet:
|  | July 1, 2018 |
|  | As Reported |  |  | Adjustments to Recognize Under Legacy GAAP |  |  | Legacy GAAP |
|  | (in thousands, except per share amount) |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable, less allowance for doubtful accounts |  | $ | 454,122 |  |  | $ | (95,102 | ) |  | $ | 359,020 |
Inventories, net |  |  | 135,550 |  |  |  | 33,830 |  |  |  | 169,380 |
Deferred tax assets |  |  | 73,574 |  |  |  | (3,494 | ) |  |  | 70,080 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Deferred revenue and customer advances |  | $ | 82,491 |  |  | $ | (7,254 | ) |  | $ | 75,237 |
Income taxes payable |  |  | 32,226 |  |  |  | (9,002 | ) |  |  | 23,224 |
Long-term deferred revenue and customer advances |  |  | 25,375 |  |  |  | (9,836 | ) |  |  | 15,539 |
SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Retained earnings |  | $ | 74,270 |  |  | $ | (38,674 | ) |  | $ | 35,596 |
Condensed Consolidated Statement of Operation:
|  | For the Three Months ended July 1, 2018 |
|  | As Reported |  |  | Adjustments to Recognize Under Legacy GAAP |  |  | Legacy GAAP |
|  | (in thousands, except per share amount) |
Total revenues |  | $ | 526,929 |  |  | $ | (28,626 | ) |  | $ | 498,303 |
Total cost of revenues |  |  | 219,595 |  |  |  | (6,081 | ) |  |  | 213,514 |
Income tax provision |  |  | 18,975 |  |  |  | (4,569 | ) |  |  | 14,406 |
Net income |  |  | 101,037 |  |  |  | (17,976 | ) |  |  | 83,061 |
Net income per common share: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.53 |  |  | $ | (0.09 | ) |  | $ | 0.44 |
Diluted |  | $ | 0.52 |  |  | $ | (0.09 | ) |  | $ | 0.43 |
|  | For the Six Months ended July 1, 2018 |
|  | As Reported |  |  | Adjustments to Recognize Under Legacy GAAP |  |  | Legacy GAAP |
|  | (in thousands, except per share amount) |
Total revenues |  | $ | 1,014,396 |  |  | $ | (94,268 | ) |  | $ | 920,128 |
Total cost of revenues |  |  | 437,230 |  |  |  | (33,830 | ) |  |  | 403,400 |
Income tax provision |  |  | 27,821 |  |  |  | (9,084 | ) |  |  | 18,737 |
Net income |  |  | 188,010 |  |  |  | (51,354 | ) |  |  | 136,656 |
Net income per common share: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.97 |  |  | $ | (0.27 | ) |  | $ | 0.71 |
Diluted |  | $ | 0.94 |  |  | $ | (0.26 | ) |  | $ | 0.69 |

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