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 27, 2026			September 28, 2025			September 27, 2026			September 28, 2025
	(in thousands)						(in thousands)
Balance at beginning of period	$	25,694		$	12,238		$	19,150		$	12,962
Accruals for warranties issued during the period		10,495			5,038			28,582			15,194
Accruals related to pre-existing warranties		761			(255	)		1,114			(1,177	)
Settlements made during the period		(9,015	)		(3,881	)		(20,911	)		(13,839	)
Balance at end of period	$	27,935		$	13,140		$	27,935		$	13,140

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 27, 2026			September 28, 2025			September 27, 2026			September 28, 2025
	(in thousands)						(in thousands)
Balance at beginning of period	$	78,124		$	46,751		$	55,913		$	41,624
Deferral of new extended warranty revenue		8,324			10,573			44,528			28,216
Recognition of extended warranty deferred revenue		(6,862	)		(6,309	)		(20,855	)		(18,825	)
Balance at end of period	$	79,586		$	51,015		$	79,586		$	51,015