Stock-Based Compensation (Tables)

3 Months Ended

Mar. 29, 2020

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 Three Months Ended
	March 29,			March 31,
	2020			2019
Risk-free interest rate		1.5	%		2.6	%
Teradyne volatility-historical		34.9	%		31.8	%
NYSE Composite Index volatility-historical		11.4	%		12.0	%
Dividend yield		0.6	%		1.0	%

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 Three Months Ended
	March 29,			March 31,
	2020			2019
Expected life (years)		5.0			5.0
Risk-free interest rate		1.6	%		2.6	%
Volatility-historical		31.6	%		30.1	%
Dividend yield		0.6	%		1.0	%