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Product Warranty | 6 Months Ended
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Jun. 28, 2020
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 |  |  | For the Six Months Ended |
|  | June 28, 2020 |  |  | June 30, 2019 |  |  | June 28, 2020 |  |  | June 30, 2019 |
|  | (in thousands) |
Balance at beginning of period |  | $ | 10,971 |  |  | $ | 7,752 |  |  | $ | 8,996 |  |  | $ | 7,909 |
Accruals for warranties issued during the period |  |  | 6,200 |  |  |  | 2,295 |  |  |  | 11,267 |  |  |  | 5,360 |
Accruals related to pre-existing warranties |  |  | 356 |  |  |  | 694 |  |  |  | 1,412 |  |  |  | 2,024 |
Settlements made during the period |  |  | (4,511 | ) |  |  | (2,608 | ) |  |  | (8,659 | ) |  |  | (7,174 | )
Acquisition |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 14 |
Balance at end of period |  | $ | 13,016 |  |  | $ | 8,133 |  |  | $ | 13,016 |  |  | $ | 8,133 |
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 |  |  | For the Six Months Ended |
|  | June 28, 2020 |  |  | June 30, 2019 |  |  | June 28, 2020 |  |  | June 30, 2019 |
|  | (in thousands) |
Balance at beginning of period |  | $ | 33,503 |  |  | $ | 27,242 |  |  | $ | 30,677 |  |  | $ | 27,422 |
Deferral of new extended warranty revenue |  |  | 11,450 |  |  |  | 5,476 |  |  |  | 19,050 |  |  |  | 11,296 |
Recognition of extended warranty deferred revenue |  |  | (4,775 | ) |  |  | (4,002 | ) |  |  | (9,549 | ) |  |  | (10,002 | )
Balance at end of period |  | $ | 40,178 |  |  | $ | 28,716 |  |  | $ | 40,178 |  |  | $ | 28,716 |

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- Definition The entire disclosure for standard and extended product warranties and other product guarantee contracts, including a tabular reconciliation of the changes in the guarantor's aggregate product warranty liability for the reporting period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -URI http://asc.fasb.org/topic&trid=2155896 + Details
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Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration