Product Warranty

3 Months Ended

Apr. 01, 2012

Product Warranty [Abstract]

Product Warranty

I. Product Warranty

Teradyne generally provides a one-year warranty on its products commencing upon installation 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 1, 2012			April 3, 2011
	(in thousands)
Balance at beginning of period	$	8,153		$	9,886
Accruals for warranties issued during the period		3,776			3,577
Adjustments related to pre-existing warranties		(260	)		(956	)
Settlements made during the period		(2,947	)		(3,005	)
Balance at end of period	$	8,722		$	9,502

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 deferred revenue and customer advances and long-term other accrued liabilities.

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Balance at beginning of period	$	12,742		$	8,972
Deferral of new extended warranty revenue		2,347			1,939
Recognition of extended warranty deferred revenue		(2,162	)		(1,041	)
Balance at end of period	$	12,927		$	9,870