Product Warranty

3 Months Ended

Apr. 03, 2022

Product Warranties Disclosures [Abstract]

Product Warranty

J. PRODUCT WARRANTY 

Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance or shipment. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience. Related costs are charged to the warranty accrual as incurred. The balance below is included in other accrued liabilities.​​​​​​​ 

	For the Three Months Ended
	April 3, 2022			April 4, 2021
	(in thousands)
Balance at beginning of period	$	24,577		$	16,633
Accruals for warranties issued during the period		4,100			11,881
Accruals related to pre-existing warranties		(2,758	)		447
Settlements made during the period		(5,814	)		(5,068	)
Balance at end of period	$	20,105		$	23,893

When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances.​​​​​​​​​​​​​​

	For the Three Months Ended
	April 3, 2022			April 4, 2021
	(in thousands)
Balance at beginning of period	$	64,168		$	51,929
Deferral of new extended warranty revenue		11,774			7,517
Recognition of extended warranty deferred revenue		(10,216	)		(5,538	)
Balance at end of period	$	65,726		$	53,908