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Stock-Based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2022
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:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Risk-free interest rate |  |  | 1.4 | % |  |  | 0.2 | % |  |  | 1.5 | %
Teradyne volatility-historical |  |  | 47.1 | % |  |  | 43.9 | % |  |  | 34.9 | %
NYSE Composite Index volatility-historical |  |  | 22.7 | % |  |  | 22.9 | % |  |  | 11.4 | %
Dividend yield |  |  | 0.4 | % |  |  | 0.4 | % |  |  | 0.6 | %
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:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Expected life (years) |  |  | 4.0 |  |  |  | 5.0 |  |  |  | 5.0 |
Risk-free interest rate |  |  | 1.6 | % |  |  | 0.4 | % |  |  | 1.5 | %
Volatility-historical |  |  | 43.7 | % |  |  | 37.8 | % |  |  | 32.0 | %
Dividend yield |  |  | 0.4 | % |  |  | 0.4 | % |  |  | 0.5 | %
Stock Compensation Plan Activity | Stock compensation plan activity for the years 2022, 2021, and 2020, is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Restricted Stock Units: |  |  |  |  |  |  |  |  |  |  |  |
Non-vested at January 1 |  |  | 1,417 |  |  |  | 1,789 |  |  |  | 2,269 |
Awarded |  |  | 660 |  |  |  | 447 |  |  |  | 616 |
Vested |  |  | (709 | ) |  |  | (749 | ) |  |  | (1,028 | )
Forfeited |  |  | (51 | ) |  |  | (70 | ) |  |  | (68 | )
Non-vested at December 31 |  |  | 1,317 |  |  |  | 1,417 |  |  |  | 1,789 |
Stock Options: |  |  |  |  |  |  |  |  |  |  |  |
Outstanding at January 1 |  |  | 171 |  |  |  | 216 |  |  |  | 319 |
Granted |  |  | 42 |  |  |  | 34 |  |  |  | 56 |
Exercised |  |  | (25 | ) |  |  | (78 | ) |  |  | (159 | )
Forfeited |  |  | — |  |  |  | (1 | ) |  |  | — |
Expired |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at December 31 |  |  | 188 |  |  |  | 171 |  |  |  | 216 |
Vested and expected to vest at December 31 |  |  | 188 |  |  |  | 171 |  |  |  | 216 |
Exercisable at December 31 |  |  | 69 |  |  |  | 30 |  |  |  | 27 |
Share Based Compensation Total Shares Available | Total shares available for the years 2022, 2021, and 2020:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Shares available: |  |  |  |  |  |  |  |  |  |  |  |
Available for grant at January 1 |  |  | 5,713 |  |  |  | 6,123 |  |  |  | 6,727 |
Options granted |  |  | (42 | ) |  |  | (34 | ) |  |  | (56 | )
Options forfeited |  |  | — |  |  |  | 1 |  |  |  | — |
Restricted stock units awarded |  |  | (660 | ) |  |  | (447 | ) |  |  | (616 | )
Restricted stock units forfeited |  |  | 51 |  |  |  | 70 |  |  |  | 68 |
Available for grant at December 31 |  |  | 5,062 |  |  |  | 5,713 |  |  |  | 6,123 |
Weighted-Average Restricted Stock Unit Award Date Fair Value | Weighted average restricted stock unit award date fair value information for the years 2022, 2021, and 2020, is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Non-vested at January 1 |  | $ | 67.97 |  |  | $ | 47.84 |  |  | $ | 35.58 |
Awarded |  |  | 108.74 |  |  |  | 115.51 |  |  |  | 72.76 |
Vested |  |  | 54.27 |  |  |  | 43.99 |  |  |  | 31.53 |
Forfeited |  |  | 85.71 |  |  |  | 65.52 |  |  |  | 45.36 |
Non-vested at December 31 |  | $ | 88.71 |  |  | $ | 67.97 |  |  | $ | 47.84 |
Restricted Stock Unit Awards Aggregate Intrinsic Value | Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2022, 2021, and 2020 is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Vested |  | $ | 95,408 |  |  | $ | 101,679 |  |  | $ | 71,582 |
Outstanding |  |  | 115,087 |  |  |  | 231,763 |  |  |  | 214,509 |
Expected to vest |  |  | 108,666 |  |  |  | 231,246 |  |  |  | 210,301 |
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 2022, 2021, and 2020 is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Outstanding |  |  | 0.99 |  |  |  | 0.89 |  |  |  | 0.96 |
Expected to vest |  |  | 0.99 |  |  |  | 0.89 |  |  |  | 0.96 |
Weighted Average Stock Options Exercise Price | Weighted average stock options exercise price information for the year ended December 31, 2022 is as follows:
|  | 2022 |
Outstanding at January 1 |  | $ | 62.13 |
Options granted |  |  | 112.12 |
Options exercised |  |  | 37.13 |
Options forfeited |  |  | — |
Options cancelled |  |  | — |
Outstanding at December 31 |  |  | 76.52 |
Exercisable at December 31 |  |  | 55.90 |
Stock Option Aggregate Intrinsic Value Information | Stock option aggregate intrinsic value information for the years ended December 31, 2022, 2021, and 2020 is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Exercised |  | $ | 2,030 |  |  | $ | 6,345 |  |  | $ | 9,682 |
Outstanding |  |  | 3,963 |  |  |  | 17,356 |  |  |  | 16,083 |
E xpected to vest |  |  | 1,583 |  |  |  | 13,500 |  |  |  | 13,499 |
Vested and exercisable |  |  | 2,380 |  |  |  | 3,856 |  |  |  | 2,584 |
Stock Options Weighted Average Remaining Contractual Terms | Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2022, 2021, and 2020 is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Outstanding |  |  | 4.2 |  |  |  | 4.4 |  |  |  | 4.6 |
E xpected to vest |  |  | 4.8 |  |  |  | 4.8 |  |  |  | 4.9 |
Vested and exercisable |  |  | 3.1 |  |  |  | 2.5 |  |  |  | 2.5 |
Effect to Income (Loss) from Operations for Recording Stock-Based Compensation | The following table provides the effect to income from operations for recording stock-based compensation for the years ended December 31, 2022, 2021, and 2020:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Cost of revenues |  | $ | 4,050 |  |  | $ | 4,196 |  |  | $ | 4,227 |
Engineering and development |  |  | 9,992 |  |  |  | 9,783 |  |  |  | 12,039 |
Selling and administrative |  |  | 34,186 |  |  |  | 31,664 |  |  |  | 28,640 |
Stock-based compensation |  |  | 48,228 |  |  |  | 45,643 |  |  |  | 44,906 |
Income tax benefit |  |  | (11,493 | ) |  |  | (14,389 | ) |  |  | (13,060 | )
Total stock-based compensation expense after income taxes |  | $ | 36,735 |  |  | $ | 31,254 |  |  | $ | 31,846 |

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