Stock-Based Compensation (Tables)

6 Months Ended

Jul. 03, 2022

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 3, 2022			July 4, 2021
Risk-free interest rate		1.4	%		0.2	%
Teradyne volatility-historical		47.1	%		43.9	%
NYSE Composite Index volatility-historical		22.7	%		22.9	%
Dividend yield		0.4	%		0.4	%

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 3, 2022			July 4, 2021
Expected life (years)		4.0			5.0
Risk-free interest rate		1.6	%		0.4	%
Volatility-historical		43.7	%		37.8	%
Dividend yield		0.4	%		0.4	%