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Stock-Based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
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:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Risk-free interest rate |  |  | 3.9 | % |  |  | 4.0 | % |  |  | 1.4 | %
Teradyne volatility-historical |  |  | 42.4 | % |  |  | 49.7 | % |  |  | 47.1 | %
NYSE Composite Index volatility-historical |  |  | 15.6 | % |  |  | 24.1 | % |  |  | 22.7 | %
Dividend yield |  |  | 0.5 | % |  |  | 0.4 | % |  |  | 0.4 | %
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:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Expected life (years) |  |  | 4.0 |  |  |  | 4.0 |  |  |  | 4.0 |
Risk-free interest rate |  |  | 4.0 | % |  |  | 3.8 | % |  |  | 1.6 | %
Volatility-historical |  |  | 46.3 | % |  |  | 46.6 | % |  |  | 43.7 | %
Dividend yield |  |  | 0.5 | % |  |  | 0.4 | % |  |  | 0.4 | %
Stock Compensation Plan Activity | Stock compensation plan activity for the years 2024, 2023 and 2022, is as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |
|  | (in thousands) |
Restricted Stock Units: |  |  |  |  |  |  |  |  |
Non-vested at January 1 |  |  | 1,378 |  |  |  | 1,317 |  |  |  | 1,417 |
Awarded |  |  | 703 |  |  |  | 728 |  |  |  | 660 |
Vested |  |  | (492 | ) |  |  | (609 | ) |  |  | (709 | )
Forfeited |  |  | (62 | ) |  |  | (58 | ) |  |  | (51 | )
Non-vested at December 31 |  |  | 1,527 |  |  |  | 1,378 |  |  |  | 1,317 |
Stock Options: |  |  |  |  |  |  |  |  |
Outstanding at January 1 |  |  | 171 |  |  |  | 188 |  |  |  | 171 |
Granted |  |  | 49 |  |  |  | 41 |  |  |  | 42 |
Exercised |  |  | (77 | ) |  |  | (56 | ) |  |  | (25 | )
Forfeited |  |  | (2 | ) |  |  | (2 | ) |  |  | — |
Expired |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at December 31 |  |  | 141 |  |  |  | 171 |  |  |  | 188 |
Vested and expected to vest at December 31 |  |  | 141 |  |  |  | 171 |  |  |  | 188 |
Exercisable at December 31 |  |  | 34 |  |  |  | 68 |  |  |  | 69 |
Share Based Compensation Total Shares Available | Total shares available for the years 2024, 2023 and 2022:
|  | 2024 |  |  | 2023 |  |  | 2022 |
|  | (in thousands) |
Shares available: |  |  |  |  |  |  |  |  |
Available for grant at January 1 |  |  | 4,353 |  |  |  | 5,062 |  |  |  | 5,713 |
Options granted |  |  | (49 | ) |  |  | (41 | ) |  |  | (42 | )
Options forfeited |  |  | 2 |  |  |  | 2 |  |  |  | — |
Restricted stock units awarded |  |  | (703 | ) |  |  | (728 | ) |  |  | (660 | )
Restricted stock units forfeited |  |  | 62 |  |  |  | 58 |  |  |  | 51 |
Available for grant at December 31 |  |  | 3,665 |  |  |  | 4,353 |  |  |  | 5,062 |
Weighted-Average Restricted Stock Unit Award Date Fair Value | Weighted average restricted stock unit award date fair value information for the years 2024, 2023 and 2022, is as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Non-vested at January 1 |  | $ | 101.00 |  |  | $ | 88.71 |  |  | $ | 67.97 |
Awarded |  |  | 97.06 |  |  |  | 105.05 |  |  |  | 108.74 |
Vested |  |  | 93.12 |  |  |  | 75.55 |  |  |  | 54.27 |
Forfeited |  |  | 103.81 |  |  |  | 102.12 |  |  |  | 85.71 |
Non-vested at December 31 |  | $ | 101.17 |  |  | $ | 101.00 |  |  | $ | 88.71 |
Restricted Stock Unit Awards Aggregate Intrinsic Value | Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2024, 2023 and 2022 is as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |
|  | (in thousands) |
Vested |  | $ | 54,235 |  |  | $ | 62,001 |  |  | $ | 95,408 |
Outstanding |  |  | 192,324 |  |  |  | 149,504 |  |  |  | 115,087 |
Expected to vest |  |  | 177,878 |  |  |  | 135,238 |  |  |  | 108,666 |
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 2024, 2023 and 2022 is as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Outstanding |  |  | 1.19 |  |  |  | 1.13 |  |  |  | 0.99 |
Expected to vest |  |  | 1.19 |  |  |  | 1.13 |  |  |  | 0.99 |
Weighted Average Stock Options Exercise Price | Weighted average stock options exercise price information for the year ended December 31, 2024 is as follows:
|  | 2024 |
Outstanding at January 1 |  | $ | 94.85 |
Options granted |  |  | 95.14 |
Options exercised |  |  | 86.02 |
Options forfeited |  |  | 112.58 |
Options cancelled |  |  | 112.80 |
Outstanding at December 31 |  |  | 99.51 |
Exercisable at December 31 |  |  | 91.27 |
Stock Option Aggregate Intrinsic Value Information | Stock option aggregate intrinsic value information for the years ended December 31, 2024, 2023 and 2022 is as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |
|  | (in thousands) |
Exercised |  | $ | 2,783 |  |  | $ | 3,901 |  |  | $ | 2,030 |
Outstanding |  |  | 3,709 |  |  |  | 2,647 |  |  |  | 3,963 |
Expected to vest |  |  | 2,531 |  |  |  | 696 |  |  |  | 1,583 |
Vested and exercisable |  |  | 1,178 |  |  |  | 1,950 |  |  |  | 2,380 |
Stock Options Weighted Average Remaining Contractual Terms | Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2024, 2023 and 2022 is as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Outstanding |  |  | 4.8 |  |  |  | 4.4 |  |  |  | 4.2 |
Expected to vest |  |  | 5.2 |  |  |  | 5.1 |  |  |  | 4.8 |
Vested and exercisable |  |  | 3.3 |  |  |  | 3.4 |  |  |  | 3.1 |
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, 2024, 2023, and 2022:
|  | 2024 |  |  | 2023 |  |  | 2022 |
|  | (in thousands) |
Cost of revenues |  | $ | 4,922 |  |  | $ | 4,208 |  |  | $ | 4,050 |
Engineering and development |  |  | 12,531 |  |  |  | 10,659 |  |  |  | 9,992 |
Selling and administrative |  |  | 42,669 |  |  |  | 42,815 |  |  |  | 34,186 |
Stock-based compensation |  |  | 60,122 |  |  |  | 57,682 |  |  |  | 48,228 |
Income tax benefit |  |  | (10,472 | ) |  |  | (10,397 | ) |  |  | (11,493 | )
Total stock-based compensation expense after income taxes |  | $ | 49,650 |  |  | $ | 47,285 |  |  | $ | 36,735 |

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