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Stock-Based Compensation (Tables)
12 Months Ended
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