The following table sets forth the computation of basic and diluted net income per common share:


	2015		2014		2013
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	206,477	$	81,272	$	164,947

Weighted average common shares-basic		211,544		202,908		190,772
Effect of dilutive potential common shares:
Incremental shares from assumed conversion of convertible notes (1)		—		5,013		23,341
Convertible note hedge warrant shares (2)		—		12,562		18,795
Restricted stock units		1,130		1,092		1,127
Stock options		606		944		1,528
Employee stock purchase rights		41		31		36

Dilutive potential common shares		1,777		19,642		44,827

Weighted average common shares-diluted		213,321		222,550		235,599

Net income per common share-basic	$	0.98	$	0.40	$	0.86

Net income per common share-diluted	$	0.97	$	0.37	$	0.70

(1)

Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period.

(2)

Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. Teradyne’s call option on its common stock (convertible note hedge transaction) was excluded from the calculation of diluted shares because the effect was anti-dilutive. See Note G: “Debt” regarding the convertible note hedge transaction.