Shareholders' Equity

3 Months Ended

Apr. 02, 2023

Equity [Abstract]

Shareholders' Equity

S. SHAREHOLDERS’ EQUITY

Stock Repurchase Program

In January 2023, Teradyne’s Board of Directors cancelled its January 2021 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. Teradyne intends to repurchase up to $500.0 million of its common stock in 2023 based on market conditions.

During the three months ended April 2, 2023, Teradyne repurchased 0.9 million shares of common stock for a total cost of $93.7 million at an average price of $104.88 per share. As of January 1, 2023, share repurchases in excess of issuances are subject to a 1% excise tax, which is included as part of the cost basis of the shares acquired.

During the three months ended April 3, 2022, Teradyne repurchased 1.8 million shares of common stock for $201.5 million at an average price of $115.12 per share.

The total cost of shares acquired includes commissions and, starting in 2023, related excise tax, and is recorded as a reduction to retained earnings.

Dividend

Holders of Teradyne’s common stock are entitled to receive dividends when they are declared by Teradyne’s Board of Directors.

In January 2023 and January 2022, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.11 per share. Dividend payments for the three months ended April 2, 2023 and April 3, 2022 were $17.2 million and $17.9 million, respectively.