XML 56 R25.htm IDEA: XBRL DOCUMENT
v2.4.0.6

STOCK BASED COMPENSATION | 62 Months Ended
--- | ---
Dec. 31, 2012
STOCK BASED COMPENSATION | P. STOCK BASED COMPENSATION Stock Compensation Plans At Teradyne’s annual meeting of stockholders held May 28, 2009, Teradyne’s stockholders approved an amendment to Teradyne’s 2006 Equity and Cash Compensation Incentive Plan to increase the number of shares issuable by 10.0 million for an aggregate of 22.0 million shares issuable thereunder. Teradyne’s stockholders also approved an amendment to Teradyne’s 1996 Employee Stock Purchase Plan to increase the number of shares issuable by 5.0 million, for an aggregate of 25.4 million shares issuable thereunder. Restricted stock unit awards granted to employees vest in equal annual installments over four years. Restricted stock unit awards granted to non-employee directors vest after a one year period, with 100% of the award vesting on the first anniversary of the grant date. A portion of the restricted stock unit awards granted to executive officers is subject to time-based vesting and a portion is subject to performance-based vesting. The percentage level of performance satisfied for performance-based grants is assessed on or near the anniversary of the grant date and, in turn, that percentage level determines the number of performance-based restricted stock units available for vesting over the vesting period; portions of the performance-based grants not available for vesting will be forfeited. In 2012, 2011 and 2010, Teradyne granted service-based stock options to executive officers. These stock options vest in equal installments over four years and have a term of seven years. Stock compensation plan activity for the years 2012, 2011 and 2010 follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Restricted Stock Units: |  |  |  |  |  |  |  |  |  |  |  |
Non-vested at January 1 |  |  | 5,840 |  |  |  | 6,963 |  |  |  | 6,896 |
Awarded |  |  | 1,844 |  |  |  | 1,936 |  |  |  | 2,626 |
Vested |  |  | (2,510 | ) |  |  | (2,624 | ) |  |  | (2,406 | )
Forfeited |  |  | (204 | ) |  |  | (435 | ) |  |  | (153 | )
Non-vested at December 31 |  |  | 4,970 |  |  |  | 5,840 |  |  |  | 6,963 |
Stock Options: |  |  |  |  |  |  |  |  |  |  |  |
Outstanding at January 1 |  |  | 5,335 |  |  |  | 7,194 |  |  |  | 11,238 |
Granted |  |  | 151 |  |  |  | 145 |  |  |  | 329 |
Assumed from acquisition |  |  | — |  |  |  | 2,828 |  |  |  | — |
Exercised |  |  | (1,396 | ) |  |  | (965 | ) |  |  | (4,031 | )
Forfeited |  |  | (203 | ) |  |  | — |  |  |  | — |
Cancelled |  |  | (46 | ) |  |  | (3,867 | ) |  |  | (342 | )
Outstanding at December 31 |  |  | 3,841 |  |  |  | 5,335 |  |  |  | 7,194 |
Vested and expected to vest at December 31 |  |  | 3,785 |  |  |  | 4,904 |  |  |  | 7,193 |
Exercisable at December 31 |  |  | 2,004 |  |  |  | 1,844 |  |  |  | 6,046 |
Total shares available for the years 2012, 2011 and 2010:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Shares available: |  |  |  |  |  |  |  |  |  |  |  |
Available for grant at January 1 |  |  | 8,205 |  |  |  | 9,851 |  |  |  | 12,653 |
Options granted |  |  | (151 | ) |  |  | (145 | ) |  |  | (329 | )
Restricted stock units granted |  |  | (1,844 | ) |  |  | (1,936 | ) |  |  | (2,626 | )
Restricted stock units forfeited |  |  | 204 |  |  |  | 435 |  |  |  | 153 |
Available for grant at December 31 |  |  | 6,414 |  |  |  | 8,205 |  |  |  | 9,851 |
Weighted-average restricted stock unit award date fair value information for the years 2012, 2011 and 2010 follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Non-vested at January 1 |  | $ | 10.01 |  |  | $ | 7.92 |  |  | $ | 7.31 |
Awarded |  |  | 16.67 |  |  |  | 15.77 |  |  |  | 9.39 |
Vested |  |  | 9.29 |  |  |  | 8.56 |  |  |  | 7.73 |
Forfeited |  |  | 13.32 |  |  |  | 9.24 |  |  |  | 8.11 |
Non-vested at December 31 |  | $ | 12.72 |  |  | $ | 10.01 |  |  | $ | 7.92 |
Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2012, 2011 and 2010 follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Outstanding |  | $ | 83,949 |  |  | $ | 79,598 |  |  | $ | 97,762 |
Expected to vest |  |  | 78,718 |  |  |  | 75,860 |  |  |  | 90,283 |
Restricted stock units weighted average contractual terms (in years) information at December 31, for the years 2012, 2011 and 2010 follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Outstanding |  |  | 1.01 |  |  |  | 1.04 |  |  |  | 1.13 |
Expected to vest |  |  | 1.00 |  |  |  | 1.03 |  |  |  | 1.12 |
Weighted average stock options exercise price information for the years 2012, 2011 and 2010 follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Outstanding at January 1 |  | $ | 4.12 |  |  | $ | 16.32 |  |  | $ | 13.87 |
Options granted |  |  | 16.95 |  |  |  | 16.23 |  |  |  | 9.34 |
Assumed from acquisition |  |  | — |  |  |  | 2.69 |  |  |  | — |
Options exercised |  |  | 3.87 |  |  |  | 4.38 |  |  |  | 8.65 |
Options forfeited |  |  | 3.11 |  |  |  | — |  |  |  | — |
Options cancelled |  |  | 16.21 |  |  |  | 26.38 |  |  |  | 19.54 |
Outstanding at December 31 |  |  | 4.64 |  |  |  | 4.12 |  |  |  | 16.32 |
Exercisable at December 31 |  |  | 3.70 |  |  |  | 4.10 |  |  |  | 18.24 |
Stock option aggregate intrinsic value information for the years ended December 31, 2012, 2011 and 2010 follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Exercised |  | $ | 17,136 |  |  | $ | 11,307 |  |  | $ | 15,096 |
Outstanding |  |  | 47,051 |  |  |  | 51,306 |  |  |  | 30,871 |
Vested and expected to vest |  |  | 46,283 |  |  |  | 46,655 |  |  |  | 30,868 |
Exercisable |  |  | 26,436 |  |  |  | 17,766 |  |  |  | 21,872 |
Stock options weighted average contractual terms (in years) information at December 31, for the years 2012, 2011 and 2010 follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Outstanding |  |  | 5.7 |  |  |  | 6.4 |  |  |  | 2.3 |
Vested and Expected to vest |  |  | 5.6 |  |  |  | 6.2 |  |  |  | 5.4 |
Exercisable |  |  | 4.9 |  |  |  | 4.0 |  |  |  | 1.7 |
Significant option groups outstanding at December 31, 2012 and related weighted average price and remaining contractual life information follow:
|  | Options Outstanding |  |  | Options Exercisable |
Range Of Exercise Prices |  | Weighted- Average Remaining Contractual Life (Years) |  |  | Shares |  |  | Weighted- Average Exercise Price |  |  | Shares |  |  | Weighted- Average Exercise Price |
|  | (shares in thousands) |
$0.47 – $2.58 |  |  | 6.31 |  |  |  | 864 |  |  | $ | 1.69 |  |  |  | 492 |  |  | $ | 1.60 |
$2.67 – $2.74 |  |  | 6.76 |  |  |  | 1,278 |  |  |  | 2.69 |  |  |  | 661 |  |  |  | 2.70 |
$3.23 – $4.81 |  |  | 3.88 |  |  |  | 795 |  |  |  | 4.29 |  |  |  | 490 |  |  |  | 4.14 |
$5.80 – $16.95 |  |  | 5.26 |  |  |  | 904 |  |  |  | 10.54 |  |  |  | 361 |  |  |  | 7.76 |
|  |  |  |  |  |  | 3,841 |  |  | $ | 4.64 |  |  |  | 2,004 |  |  | $ | 3.70 |
As of December 31, 2012, total unrecognized expense related to non-vested restricted stock unit awards and stock options totaled $52.1 million, and is expected to be recognized over a weighted average period of 2.0 years. Employee Stock Purchase Plan Under the Teradyne 1996 Employee Stock Purchase Plan, eligible employees (including executive officers) may purchase shares of common stock through regular payroll deductions of up to 10% of their compensation, to a maximum of shares with a fair market value of $25,000 per calendar year, not to exceed 6,000 shares. Under the plan, the price paid for the common stock is equal to 85% of the lower of the fair market value of Teradyne’s common stock on the first business day and the last business day of each six month purchase period within each year. Beginning in January 2013, the price paid will be equal to 85% of the stock price on the last business day of the purchase period. In July 2012, 0.6 million shares of common stock were issued to employees who participated in the plan during the first half of 2012, at the price of $11.69 per share. In January 2013, Teradyne issued 0.6 million shares of common stock to employees who participated in the plan during the second half of 2012, at the price of $11.91 per share. In July 2011, 0.6 million shares of common stock were issued to employees who participated in the plan during the first half of 2011, at the price of $11.65 per share. In January 2012, Teradyne issued 0.6 million shares of common stock to employees who participated in the plan during the second half of 2011, at the price of $11.59 per share. In July 2010, 0.6 million shares of common stock were issued to employees who participated in the plan during the first half of 2010, at the price of $8.29 per share. In January 2011, Teradyne issued 0.8 million shares of common stock to employees who participated in the plan during the second half of 2010, at the price of $8.12 per share.

X
- Definition Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration