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Product Warranty
 3 Months Ended
Mar. 31, 2019
Product Warranty
L. PRODUCT WARRANTY
Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance, delivery 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 warranty balance below is included in other accrued liabilities on the balance sheet.
 
 
 
For the Three Months

Ended
 
 
 
March 31,
 
 
April 1,
 
 
 
2019
 
 
2018
 
 
 
(in thousands)
 
Balance at beginning of period
 
$
7,909
 
 
$
8,200
 
Acquisition
 
 
14
 
 
 
—
 
Accruals for warranties issued during the period
 
 
3,066
 
 
 
3,063
 
Accruals related to pre-existing warranties
 
 
1,330
 
 
 
(139
)
Settlements made during the period
 
 
(4,567
)
 
 
(3,576
)
Balance at end of period
 
$
7,752
 
 
$
7,548
 
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
 
 
 
March 31,
 
 
April 1,
 
 
 
2019
 
 
2018
 
 
 
(in thousands)
 
Balance at beginning of period
 
$
27,422
 
 
$
24,438
 
Deferral of new extended warranty revenue
 
 
5,820
 
 
 
5,139
 
Recognition of extended warranty deferred revenue
 
 
(6,000
)
 
 
(4,987
)
Balance at end of period
 
$
27,242
 
 
$
24,590