Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Deferred Revenue and Customer Advances

As of December 31, 2021 and 2020, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances:

	2021		2020
	(in thousands)
Maintenance, service and training	$	81,826	$	77,654
Extended warranty		64,168		51,929
Customer advances, undelivered elements and other		55,112		63,438
Total deferred revenue and customer advances	$	201,106	$	193,021

Other Accrued Liabilities

	Amount
	(in thousands)
Balance at December 31, 2018	$	7,909
Acquisition		14
Accruals for warranties issued during the period		14,106
Accruals related to pre-existing warranties		4,026
Settlements made during the period		(17,059	)
Balance at December 31, 2019		8,996
Accruals for warranties issued during the period		28,490
Accruals related to pre-existing warranties		821
Settlements made during the period		(21,674	)
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

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

	Amount
	(in thousands)
Balance at December 31, 2018	$	27,422
Deferral of new extended warranty revenue		23,271
Recognition of extended warranty deferred revenue		(20,016	)
Balance at December 31, 2019		30,677
Deferral of new extended warranty revenue		41,694
Recognition of extended warranty deferred revenue		(20,442	)
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

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

Prepayments consist of the following:

	2021		2020
	(in thousands)
Contract manufacturer and supplier prepayments	$	364,478	$	212,286
Prepaid taxes		15,090		9,361
Prepaid maintenance and other services		13,660		13,116
Other prepayments		13,038		15,329
Total prepayments	$	406,266	$	250,092

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