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Stock Based Compensation | 12 Months Ended
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Dec. 31, 2013
Stock Based Compensation | O. STOCK BASED COMPENSATION Stock Compensation Plans At Teradyne’s annual meeting of stockholders held May 21, 2013, 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 32.0 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 30.4 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 2013, 2012 and 2011, 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 2013, 2012 and 2011 follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (in thousands) |
Restricted Stock Units: |  |  |  |  |  |  |  |  |  |  |  |
Non-vested at January 1 |  |  | 4,970 |  |  |  | 5,840 |  |  |  | 6,963 |
Awarded |  |  | 2,110 |  |  |  | 1,844 |  |  |  | 1,936 |
Vested |  |  | (2,322 | ) |  |  | (2,510 | ) |  |  | (2,624 | )
Forfeited |  |  | (122 | ) |  |  | (204 | ) |  |  | (435 | )
Non-vested at December 31 |  |  | 4,636 |  |  |  | 4,970 |  |  |  | 5,840 |
Stock Options: |  |  |  |  |  |  |  |  |  |  |  |
Outstanding at January 1 |  |  | 3,841 |  |  |  | 5,335 |  |  |  | 7,194 |
Granted |  |  | 213 |  |  |  | 151 |  |  |  | 145 |
Assumed from acquisition |  |  | — |  |  |  | — |  |  |  | 2,828 |
Exercised |  |  | (1,220 | ) |  |  | (1,396 | ) |  |  | (965 | )
Forfeited |  |  | (104 | ) |  |  | (203 | ) |  |  | — |
Cancelled |  |  | (24 | ) |  |  | (46 | ) |  |  | (3,867 | )
Outstanding at December 31 |  |  | 2,706 |  |  |  | 3,841 |  |  |  | 5,335 |
Vested and expected to vest at December 31 |  |  | 2,694 |  |  |  | 3,785 |  |  |  | 4,904 |
Exercisable at December 31 |  |  | 1,814 |  |  |  | 2,004 |  |  |  | 1,844 |
Total shares available for the years 2013, 2012 and 2011:
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (in thousands) |
Shares available: |  |  |  |  |  |  |  |  |  |  |  |
Available for grant at January 1 |  |  | 6,414 |  |  |  | 8,205 |  |  |  | 9,851 |
Options granted |  |  | (213 | ) |  |  | (151 | ) |  |  | (145 | )
Restricted stock units granted |  |  | (2,110 | ) |  |  | (1,844 | ) |  |  | (1,936 | )
Restricted stock units forfeited |  |  | 122 |  |  |  | 204 |  |  |  | 435 |
Additional shares reserved |  |  | 10,000 |  |  |  | — |  |  |  | — |
Available for grant at December 31 |  |  | 14,213 |  |  |  | 6,414 |  |  |  | 8,205 |
Weighted-average restricted stock unit award date fair value information for the years 2013, 2012 and 2011 follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Non-vested at January 1 |  | $ | 12.72 |  |  | $ | 10.01 |  |  | $ | 7.92 |
Awarded |  |  | 16.53 |  |  |  | 16.67 |  |  |  | 15.77 |
Vested |  |  | 10.40 |  |  |  | 9.29 |  |  |  | 8.56 |
Forfeited |  |  | 15.48 |  |  |  | 13.32 |  |  |  | 9.24 |
Non-vested at December 31 |  | $ | 15.56 |  |  | $ | 12.72 |  |  | $ | 10.01 |
Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2013, 2012 and 2011 follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (in thousands) |
Outstanding |  | $ | 81,680 |  |  | $ | 83,949 |  |  | $ | 79,598 |
Expected to vest |  |  | 77,388 |  |  |  | 78,718 |  |  |  | 75,860 |
Restricted stock units weighted average contractual terms (in years) information at December 31, for the years 2013, 2012 and 2011 follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Outstanding |  |  | 1.14 |  |  |  | 1.01 |  |  |  | 1.04 |
Expected to vest |  |  | 1.13 |  |  |  | 1.00 |  |  |  | 1.03 |
Weighted average stock options exercise price information for the years 2013, 2012 and 2011 follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Outstanding at January 1 |  | $ | 4.64 |  |  | $ | 4.12 |  |  | $ | 16.32 |
Options granted |  |  | 16.56 |  |  |  | 16.95 |  |  |  | 16.23 |
Assumed from acquisition |  |  | — |  |  |  | — |  |  |  | 2.69 |
Options exercised |  |  | 3.28 |  |  |  | 3.87 |  |  |  | 4.38 |
Options forfeited |  |  | 2.57 |  |  |  | 3.11 |  |  |  | — |
Options cancelled |  |  | 8.05 |  |  |  | 16.21 |  |  |  | 26.38 |
Outstanding at December 31 |  |  | 6.29 |  |  |  | 4.64 |  |  |  | 4.12 |
Exercisable at December 31 |  |  | 4.55 |  |  |  | 3.70 |  |  |  | 4.10 |
Stock option aggregate intrinsic value information for the years ended December 31, 2013, 2012 and 2011 follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (in thousands) |
Exercised |  | $ | 16,848 |  |  | $ | 17,136 |  |  | $ | 11,307 |
Outstanding |  |  | 30,673 |  |  |  | 47,051 |  |  |  | 51,306 |
Vested and expected to vest |  |  | 30,512 |  |  |  | 46,283 |  |  |  | 46,655 |
Exercisable |  |  | 23,707 |  |  |  | 26,436 |  |  |  | 17,766 |
Stock options weighted average contractual terms (in years) information at December 31, for the years 2013, 2012 and 2011 follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Outstanding |  |  | 4.9 |  |  |  | 5.7 |  |  |  | 6.4 |
Vested and Expected to vest |  |  | 4.9 |  |  |  | 5.6 |  |  |  | 6.2 |
Exercisable |  |  | 4.3 |  |  |  | 4.9 |  |  |  | 4.0 |
Significant option groups outstanding at December 31, 2013 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) |
$0.94 – $2.58 |  |  | 5.97 |  |  |  | 485 |  |  | $ | 1.83 |  |  |  | 436 |  |  | $ | 1.79 |
$2.67 – $2.74 |  |  | 5.39 |  |  |  | 821 |  |  |  | 2.69 |  |  |  | 545 |  |  |  | 2.70 |
$3.23 – $7.71 |  |  | 3.80 |  |  |  | 674 |  |  |  | 5.15 |  |  |  | 590 |  |  |  | 5.00 |
$9.34 – $16.95 |  |  | 4.64 |  |  |  | 726 |  |  |  | 14.39 |  |  |  | 243 |  |  |  | 12.58 |
|  |  |  |  |  |  | 2,706 |  |  | $ | 6.29 |  |  |  | 1,814 |  |  | $ | 4.55 |
As of December 31, 2013, total unrecognized expense related to non-vested restricted stock unit awards and stock options was $51.3 million, and is expected to be recognized over a weighted average period of 2.4 years. Employee Stock Purchase Plan Under the Teradyne 1996 Employee Stock Purchase Plan, eligible employees 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, in 2013, is equal to 85% of the stock price on the last business day of the six month purchase period. In 2012 and 2011, the price paid for the common stock was 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. In July 2013, 0.4 million shares of common stock were issued to employees who participated in the plan during the first half of 2013, at the price of $14.94 per share. In January 2014, Teradyne issued 0.4 million shares of common stock to employees who participated in the plan during the second half of 2013, at the price of $14.98 per share. 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.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + 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 Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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