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Stock-Based Compensation (Tables)
9 Months Ended
Oct. 01, 2017
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions

The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions:

 

     For the Nine Months
Ended
 
     October 1,
2017
    October 2,
2016
 

Expected life (years)

     5.0       5.0  

Risk-free interest rate

     2.0     1.4

Volatility-historical

     27.8     32.9

Dividend yield

     1.0     1.2

 

Stock Options  
Fair Value of Stock Options Using Assumptions
The fair value was estimated using the Monte Carlo simulation model with the following assumptions:

 

     For the Nine Months
Ended
 
     October 1,
2017
    October 2,
2016
 

Risk-free interest rate

     1.5     1.0

Teradyne volatility-historical

     26.6     27.0

NYSE Composite Index volatility-historical

     13.4     13.1

Dividend yield

     1.0     1.2