Stock-Based Compensation (Tables)

9 Months Ended

Sep. 29, 2019

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 Nine Months Ended
	September 29, 2019			September 30, 2018
Risk-free interest rate		2.6	%		2.2	%
Teradyne volatility-historical		31.9	%		26.8	%
NYSE Composite Index volatility-historical		11.9	%		12.4	%
Dividend yield		1.0	%		0.8	%

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 Nine Months Ended
	September 29, 2019			September 30, 2018
Expected life (years)		5.0			5.0
Risk-free interest rate		2.5	%		2.4	%
Volatility-historical		30.1	%		26.4	%
Dividend yield		1.0	%		0.8	%