Stock-Based Compensation (Tables)

3 Months Ended

Apr. 02, 2023

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 2, 2023			April 3, 2022
Risk-free interest rate		3.9	%		1.4	%
Teradyne volatility-historical		50.2	%		47.1	%
NYSE Composite Index volatility-historical		24.8	%		22.7	%
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 Three Months Ended
	April 2, 2023			April 3, 2022
Expected life (years)		4.0			4.0
Risk-free interest rate		3.7	%		1.6	%
Volatility-historical		46.7	%		43.7	%
Dividend yield		0.4	%		0.4	%