Stock-Based Compensation (Tables)

3 Months Ended

Apr. 04, 2021

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
	April 4,			March 29,
	2021			2020
Risk-free interest rate		0.2	%		1.5	%
Teradyne volatility-historical		43.9	%		34.9	%
NYSE Composite Index volatility-historical		22.9	%		11.4	%
Dividend yield		0.4	%		0.6	%

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
	April 4,			March 29,
	2021			2020
Expected life (years)		5.0			5.0
Risk-free interest rate		0.4	%		1.6	%
Volatility-historical		37.8	%		31.6	%
Dividend yield		0.4	%		0.6	%