Product Warranty

9 Months Ended

Sep. 28, 2025

Product Warranties Disclosures [Abstract]

L. 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 Nine Months Ended
	September 28, 2025			September 29, 2024			September 28, 2025			September 29, 2024
	(in thousands)						(in thousands)
Balance at beginning of period	$	12,238		$	15,244		$	12,962		$	15,698
Accruals for warranties issued during the period		5,038			2,149			15,194			8,331
Accruals related to pre-existing warranties		(255	)		(545	)		(1,177	)		(1,513	)
Settlements made during the period		(3,881	)		(2,990	)		(13,839	)		(8,658	)
Balance at end of period	$	13,140		$	13,858		$	13,140		$	13,858

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 Nine Months Ended
	September 28, 2025			September 29, 2024			September 28, 2025			September 29, 2024
	(in thousands)						(in thousands)
Balance at beginning of period	$	46,751		$	33,512		$	41,624		$	34,897
Deferral of new extended warranty revenue		10,573			9,714			28,216			22,316
Recognition of extended warranty deferred revenue		(6,309	)		(4,297	)		(18,825	)		(18,284	)
Balance at end of period	$	51,015		$	38,929		$	51,015		$	38,929