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Stock-Based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2017
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:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Risk-free interest rate |  |  | 1.5 | % |  |  | 1.0 | % |  |  | 0.8 | %
Teradyne volatility-historical |  |  | 26.6 | % |  |  | 27.0 | % |  |  | 28.2 | %
NYSE Composite Index volatility-historical |  |  | 13.4 | % |  |  | 13.1 | % |  |  | — |
Philadelphia Semiconductor Index volatility-historical |  |  | — |  |  |  | — |  |  |  | 19.7 | %
Dividend yield |  |  | 1.0 | % |  |  | 1.2 | % |  |  | 1.3 | %
Fair Value of Stock Options Using Assumptions | The fair value of the stock options at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Expected life (years) |  |  | 5.0 |  |  |  | 5.0 |  |  |  | 4.0 |
Risk-free interest rate |  |  | 2.0 | % |  |  | 1.4 | % |  |  | 1.1 | %
Volatility-historical |  |  | 27.8 | % |  |  | 32.9 | % |  |  | 33.4 | %
Dividend yield |  |  | 1.0 | % |  |  | 1.2 | % |  |  | 1.3 | %
Stock Compensation Plan Activity | Stock compensation plan activity for the years 2017, 2016, and 2015 follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in thousands) |
Restricted Stock Units: |  |  |  |  |  |  |  |  |  |  |  |
Non-vested at January 1 |  |  | 3,778 |  |  |  | 4,070 |  |  |  | 4,352 |
Awarded |  |  | 939 |  |  |  | 1,471 |  |  |  | 1,681 |
Vested |  |  | (1,434 | ) |  |  | (1,530 | ) |  |  | (1,679 | )
Forfeited |  |  | (109 | ) |  |  | (233 | ) |  |  | (284 | )
Non-vested at December 31 |  |  | 3,174 |  |  |  | 3,778 |  |  |  | 4,070 |
Stock Options: |  |  |  |  |  |  |  |  |  |  |  |
Outstanding at January 1 |  |  | 926 |  |  |  | 1,121 |  |  |  | 1,507 |
Granted |  |  | 111 |  |  |  | 130 |  |  |  | 132 |
Exercised |  |  | (501 | ) |  |  | (324 | ) |  |  | (518 | )
Forfeited |  |  | — |  |  |  | — |  |  |  | — |
Expired |  |  | (5 | ) |  |  | (2 | ) |  |  | — |
Outstanding at December 31 |  |  | 531 |  |  |  | 926 |  |  |  | 1,121 |
Vested and expected to vest at December 31 |  |  | 531 |  |  |  | 926 |  |  |  | 1,121 |
Exercisable at December 31 |  |  | 233 |  |  |  | 598 |  |  |  | 779 |
Share Based Compensation Total Shares Available | Total shares available for the years 2017, 2016, and 2015:
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in thousands) |
Shares available: |  |  |  |  |  |  |  |  |  |  |  |
Available for grant at January 1 |  |  | 9,546 |  |  |  | 10,914 |  |  |  | 12,443 |
Options granted |  |  | (111 | ) |  |  | (130 | ) |  |  | (132 | )
Restricted stock units awarded |  |  | (939 | ) |  |  | (1,471 | ) |  |  | (1,681 | )
Restricted stock units forfeited |  |  | 109 |  |  |  | 233 |  |  |  | 284 |
Additional shares reserved |  |  | — |  |  |  | — |  |  |  | — |
Available for grant at December 31 |  |  | 8,605 |  |  |  | 9,546 |  |  |  | 10,914 |
Weighted-Average Restricted Stock Unit Award Date Fair Value | Weighted average restricted stock unit award date fair value information for the years 2017, 2016, and 2015 follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Non-vested at January 1 |  | $ | 18.27 |  |  | $ | 17.66 |  |  | $ | 17.35 |
Awarded |  |  | 28.91 |  |  |  | 18.95 |  |  |  | 17.66 |
Vested |  |  | 17.90 |  |  |  | 17.36 |  |  |  | 16.93 |
Forfeited |  |  | 20.35 |  |  |  | 17.80 |  |  |  | 17.28 |
Non-vested at December 31 |  | $ | 21.71 |  |  | $ | 18.27 |  |  | $ | 17.66 |
Restricted Stock Unit Awards Aggregate Intrinsic Value | Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2017, 2016, and 2015 follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in thousands) |
Vested |  | $ | 40,649 |  |  | $ | 30,008 |  |  | $ | 32,200 |
Outstanding |  |  | 132,875 |  |  |  | 95,952 |  |  |  | 84,129 |
Expected to vest |  |  | 130,594 |  |  |  | 91,871 |  |  |  | 79,611 |
Restricted Stock Units Weighted Average Remaining Contractual Terms | Restricted stock units weighted average remaining contractual terms (in years) information at December 31, for the years 2017, 2016, and 2015 follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Outstanding |  |  | 1.00 |  |  |  | 1.04 |  |  |  | 1.09 |
Expected to vest |  |  | 0.99 |  |  |  | 1.03 |  |  |  | 1.08 |
Weighted Average Stock Options Exercise Price | Weighted average stock options exercise price information for the year ended December 31, 2017 follows:
|  | 2017 |
Outstanding at January 1 |  | $ | 11.93 |
Options granted |  |  | 28.56 |
Options exercised |  |  | 13.60 |
Options forfeited |  |  | 3.04 |
Options cancelled |  |  | — |
Outstanding at December 31 |  |  | 13.92 |
Exercisable at December 31 |  |  | 2.95 |
Stock Option Aggregate Intrinsic Value Information | Stock option aggregate intrinsic value information for the years ended December 31, 2017, 2016, and 2015 follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in thousands) |
Exercised |  | $ | 8,035 |  |  | $ | 3,729 |  |  | $ | 7,255 |
Outstanding |  |  | 14,831 |  |  |  | 12,468 |  |  |  | 11,729 |
Vested and expected to vest |  |  | 14,831 |  |  |  | 12,468 |  |  |  | 11,729 |
Exercisable |  |  | 9,076 |  |  |  | 10,217 |  |  |  | 10,716 |
Stock Options Weighted Average Remaining Contractual Terms | Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2017, 2016, and 2015 follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Outstanding |  |  | 4.1 |  |  |  | 3.9 |  |  |  | 4.2 |
Vested and expected to vest |  |  | 4.1 |  |  |  | 3.9 |  |  |  | 4.2 |
Exercisable |  |  | 2.8 |  |  |  | 3.2 |  |  |  | 3.9 |
Significant Option Groups Outstanding | Significant option groups outstanding at December 31, 2017 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) |
$1.48 – $2.58 |  |  | 2.19 |  |  |  | 99 |  |  | $ | 1.81 |  |  |  | 99 |  |  | $ | 1.81 |
$2.67 – $7.71 |  |  | 3.17 |  |  |  | 126 |  |  |  | 2.89 |  |  |  | 126 |  |  |  | 2.89 |
$18.10 – $19.43 |  |  | 4.48 |  |  |  | 194 |  |  |  | 18.91 |  |  |  | 8 |  |  |  | 18.51 |
$28.56 |  |  | 6.08 |  |  |  | 112 |  |  |  | 28.56 |  |  |  | — |  |  |  | — |
|  |  |  |  |  |  | 531 |  |  | $ | 13.92 |  |  |  | 233 |  |  | $ | 2.95 |
Effect to Income (Loss) from Operations for Recording Stock-Based Compensation | The effect to income from operations for recording stock-based compensation for the years ended December 31 was as follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in thousands) |
Cost of revenues |  | $ | 3,212 |  |  | $ | 3,153 |  |  | $ | 3,065 |
Engineering and development |  |  | 9,370 |  |  |  | 9,458 |  |  |  | 9,362 |
Selling and administrative |  |  | 21,515 |  |  |  | 18,139 |  |  |  | 18,024 |
Stock-based compensation |  |  | 34,097 |  |  |  | 30,750 |  |  |  | 30,451 |
Income tax benefit |  |  | (10,462 | ) |  |  | (8,752 | ) |  |  | (8,528 | )
Total stock-based compensation expense after income taxes |  | $ | 23,635 |  |  | $ | 21,998 |  |  | $ | 21,923 |

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- Definition Tabular disclosure for share-based compensation plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 + Details
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