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Revenue
 6 Months Ended
Jul. 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 July 2, 2023 (1)
                                                                
Timing of Revenue Recognition
                                                                
Point in Time
   $ 282,080     $ 112,547     $ 76,801     $ 55,737     $ 12,770     $ 40,261     $ —       $ 580,196  
Over Time
     72,614       7,467       17,471       2,116       1,011       3,562       —         104,241  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 354,694     $ 120,014     $ 94,272     $ 57,853     $ 13,781     $ 43,823     $ —       $ 684,437  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Geographical Market
                                                                
Asia Pacific
   $ 303,062     $ 115,250     $ 41,644     $ 14,883     $ 2,291     $ 22,362     $ —       $ 499,492  
Americas
     32,191       4,286       40,163       22,832       6,086       19,491       —         125,049  
Europe, Middle East and Africa
     19,441       478       12,465       20,138       5,404       1,970       —         59,896  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 354,694     $ 120,014     $ 94,272     $ 57,853     $ 13,781     $ 43,823     $ —       $ 684,437  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
For the Three Months Ended July 3, 2022 (1)
                                                                
Timing of Revenue Recognition
                                                                
Point in Time
   $ 395,211     $ 74,790     $ 118,692     $ 80,409     $ 17,801     $ 60,765     $ (193 )    $ 747,475  
Over Time
     64,253       7,094       16,010       2,104       741       3,089       —         93,291  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 459,464     $ 81,884     $ 134,702     $ 82,513     $ 18,542     $ 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       7,229       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     $ 18,542     $ 63,854     $ (193 )    $ 840,766  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
For the Six Months Ended July 2, 2023 (2)
                                                                
Timing of Revenue Recognition
                                                                
Point in Time
   $ 555,354     $ 173,805     $ 133,658     $ 125,760     $ 28,735     $ 75,624     $ —       $ 1,092,937  
Over Time
     146,173       14,384       35,245       4,124       2,229       6,874       —         209,029  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 701,528     $ 188,189     $ 168,903     $ 129,884     $ 30,964     $ 82,498     $ —       $ 1,301,966  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Geographical Market
                                                                
Asia Pacific
   $ 586,321     $ 178,945     $ 81,234     $ 28,100     $ 3,793     $ 45,593     $ —       $ 923,986  
Americas
     73,759       7,230       69,143       43,273       17,898       32,337       —         243,640  
Europe, Middle East and Africa
     41,448       2,014       18,526       58,511       9,273       4,568       —         134,340  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 701,528     $ 188,189     $ 168,903     $ 129,884     $ 30,964     $ 82,498     $ —       $ 1,301,966  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
For the Six Months Ended July 3, 2022 (2)
                                                                
Timing of Revenue Recognition
                                                                
Point in Time
   $ 718,666     $ 163,513     $ 223,981     $ 163,591     $ 34,545     $ 109,194     $ (539 )    $ 1,412,951  
Over Time
     127,382       14,127       29,390       4,206       1,902       6,178       —         183,185  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 846,048     $ 177,640     $ 253,371     $ 167,797     $ 36,447     $ 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       15,793       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     $ 36,447     $ 115,372     $ (539 )    $ 1,596,136  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
Includes $1.3 million and $1.9 million in 2023 and 2022, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606
“Revenue from Contracts with Customers.”
(2)
Includes $2.5 million and $4.2 million in 2023 and 2022, 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 2, 2023, Teradyne recognized $27.3 million and $68.4 million, respectively, that was included within the deferred revenue and customer advances balances at the beginning of the period. During the three and six months ended July 3, 2022, Teradyne recognized $25.1 million and $60.2 
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 July 2, 2023, Teradyne
had $
1,271.6
 million of unsatisfied performance obligations. Teradyne expects to recognize
 
approximately
 
90
% of the remaining performance obligations in the next
12
months and
the remainder
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:

 
 
  
July 2,
 
  
December 31,
 
 
  
2023
 
  
2022
 
 
  
 
 
  
 
 
 
  
(in thousands)
 
Maintenance, service and training
    $ 68,282      $ 78,089  
Customer advances, undelivered elements and other
      46,380        59,147  
Extended warranty
      44,422        56,180  
    
 
 
     
 
 
  
Total deferred revenue and customer advances
    $ 159,084      $ 193,416  
    
 
 
     
 
 
  
Accounts Receivable
During the three and six months ended July 2, 2023 and July 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 July 2, 2023 and July 3, 2022, total trade accounts receivable sold under the factoring agreements were $59.3 million and $37.6 million, respectively. During the six months ended July 2, 2023 and July 3, 2022, total trade account
s
receivable sold under the factoring agreements were $93.5 million and $57.1 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.