Stock-Based Compensation (Tables)

6 Months Ended

Jul. 02, 2017

Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions

The fair value was estimated using the Monte Carlo simulation model with the following assumptions:

	For the Six Months Ended
	July 2, 2017			July 3, 2016
Risk-free interest rate		1.5	%		1.0	%
Teradyne volatility-historical		26.6	%		27.0	%
NYSE Composite Index volatility-historical		13.4	%		13.1	%
Dividend yield		1.0	%		1.2	%

Stock Options

Fair Value of Stock Options Using Assumptions

The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions:

	For the Six Months Ended
	July 2, 2017			July 3, 2016
Expected life (years)		5.0			5.0
Risk-free interest rate		2.0	%		1.4	%
Volatility-historical		27.8	%		32.9	%
Dividend yield		1.0	%		1.2	%