That would be per side, with a sharp pointed tool, straight in, not depth of compound travel. The depth figure would be more for purposes of calculating root diameter than in cutting the thread. In cutting threads in the lathe, one just starts feeding the tool in for each successive cut until the thread nearly comes up sharp, starting with a relatively heavy cut and reducing the infeed with each pass until nearly on size, gaging the fit with a thread gage or a nut that has had a tap run through it to make sure it is not burred, or, thread wires can also be used for sizing the thread or a thread micrometer can be used, having referred to the tables of pitch diameter in a machinist's handbook.