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Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Deferred Revenue and Customer Advances

As of December 31, 2022 and 2021, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances:

		2022				2021
		(in thousands)
Maintenance, service and training		$	78,089			$	81,826
Customer advances, undelivered elements and other			59,147				55,112
Extended warranty			56,180				64,168
Total deferred revenue and customer advances		$	193,416			$	201,106

Other Accrued Liabilities

		Amount
		(in thousands)
Balance at December 31, 2019		$	8,996
Accruals for warranties issued during the period			28,490
Accruals related to pre-existing warranties			821
Settlements made during the period			(21,674	)
Balance at December 31, 2020			16,633
Accruals for warranties issued during the period			35,727
Accruals related to pre-existing warranties			(6,846	)
Settlements made during the period			(20,937	)
Balance at December 31, 2021			24,577
Accruals for warranties issued during the period			21,851
Accruals related to pre-existing warranties			(5,618	)
Settlements made during the period			(26,629	)
Balance at December 31, 2022		$	14,181

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

		Amount
		(in thousands)
Balance at December 31, 2019		$	30,677
Deferral of new extended warranty revenue			41,694
Recognition of extended warranty deferred revenue			(20,442	)
Balance at December 31, 2020			51,929
Deferral of new extended warranty revenue			43,597
Recognition of extended warranty deferred revenue			(31,358	)
Balance at December 31, 2021			64,168
Deferral of new extended warranty revenue			33,686
Recognition of extended warranty deferred revenue			(41,674	)
Balance at December 31, 2022		$	56,180

Summary of Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

Prepayments consist of the following:

		2022				2021
		(in thousands)
Contract manufacturer and supplier prepayments		$	491,105			$	364,478
Prepaid taxes			18,625				15,090
Prepaid maintenance and other services			14,545				13,660
Other prepayments			8,687				13,038
Total prepayments		$	532,962			$	406,266

Useful Lives of Assets

Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows:

Buildings		40 years
Building improvements		5 to 10 years
Leasehold improvements		Lesser of lease term or 10 years
Furniture and fixtures		10 years
Test systems manufactured internally		6 years
Machinery, equipment and software		3 to 5 years

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