Product Warranty (Tables)

9 Months Ended

Sep. 30, 2018

Other Accrued Liabilities

The warranty balance below is included in other accrued liabilities on the balance sheet.

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2018			October 1, 2017			September 30, 2018			October 1, 2017
	(in thousands)
Balance at beginning of period	$	7,136		$	9,093		$	8,200		$	7,203
Acquisition		—			—			41			—
Accruals for warranties issued during the period		2,760			2,734			9,171			11,049
Adjustments related to pre-existing warranties		282			(35	)		109			(499	)
Settlements made during the period		(2,675	)		(3,055	)		(10,018	)		(9,016	)
Balance at end of period	$	7,503		$	8,737		$	7,503		$	8,737

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

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 on the balance sheet.

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2018			October 1, 2017			September 30, 2018			October 1, 2017
	(in thousands)
Balance at beginning of period	$	25,971		$	29,377		$	24,438		$	28,200
Deferral of new extended warranty revenue		7,232			2,636			19,072			17,126
Recognition of extended warranty deferred revenue		(5,586	)		(5,521	)		(15,893	)		(18,834	)
Balance at end of period	$	27,617		$	26,492		$	27,617		$	26,492