Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Deferred Revenue and Customer Advances

As of December 31, 2023 and 2022, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances:

	2023		2022
	(in thousands)
Maintenance, service and training	$	66,458	$	78,089
Customer advances, undelivered elements and other		35,731		59,147
Extended warranty		34,897		56,180
Total deferred revenue and customer advances	$	137,086	$	193,416

Other Accrued Liabilities

	Amount
	(in thousands)
Balance at December 31, 2020	$	16,633
Accruals for warranties issued during the period		35,727
Accruals related to pre-existing warranties		(6,846	)
Settlements made during the period		(20,937	)
Balance at December 31, 2021		24,577
Accruals for warranties issued during the period		21,851
Accruals related to pre-existing warranties		(5,618	)
Settlements made during the period		(26,629	)
Balance at December 31, 2022		14,181
Accruals for warranties issued during the period		21,644
Accruals related to pre-existing warranties		(1,576	)
Settlements made during the period		(18,551	)
Balance at December 31, 2023	$	15,698

Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances

	Amount
	(in thousands)
Balance at December 31, 2020	$	51,929
Deferral of new extended warranty revenue		43,597
Recognition of extended warranty deferred revenue		(31,358	)
Balance at December 31, 2021		64,168
Deferral of new extended warranty revenue		33,686
Recognition of extended warranty deferred revenue		(41,674	)
Balance at December 31, 2022		56,180
Deferral of new extended warranty revenue		14,330
Recognition of extended warranty deferred revenue		(35,613	)
Balance at December 31, 2023	$	34,897

Summary of Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

Prepayments consist of the following:

	2023 (1)		2022
	(in thousands)
Contract manufacturer and supplier prepayments	$	502,257	$	491,105
Prepaid maintenance and other services		17,592		14,545
Prepaid taxes		16,083		18,625
Other prepayments		13,038		8,687
Total prepayments	$	548,970	$	532,962

(1)Excludes $5.3 million of contract manufacturer and supplier prepayments, classified as assets held for sale. See Note E: “Assets held for sale” for additional information.

Useful Lives of Assets

Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows:

Buildings	40 years
Building improvements	5 to 10 years
Leasehold improvements	Lesser of lease term or 10 years
Furniture and fixtures	10 years
Test systems manufactured internally	6 years
Machinery, equipment and software	3 to 5 years