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


	For the Three Months Ended				For the Nine Months Ended
	October 1, 2017		October 2, 2016		October 1, 2017		October 2, 2016
	(in thousands, except per share amounts)
Net income (loss) for basic and diluted net income (loss) per share	$	103,420	$	63,794	$	363,616	$	(109,767	)

Weighted average common shares-basic		197,485		202,211		198,755		203,167
Effect of dilutive potential common shares:
Restricted stock units		1,832		1,282		1,663		—
Incremental shares from assumed conversion of convertible note		1,144		—		632		—
Stock options		306		421		337		—
Employee stock purchase plan		8		15		26		—

Dilutive potential common shares		3,290		1,718		2,658		—

Weighted average common shares-diluted		200,775		203,929		201,413		203,167

Net income (loss) per common share-basic	$	0.52	$	0.32	$	1.83	$	(0.54	)

Net income (loss) per common share-diluted	$	0.52	$	0.31	$	1.81	$	(0.54	)

(1)

Incremental shares from assumed conversion of the convertible notes for the three and nine months ended October 1, 2017 are calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.84, multiplied by the 14.4 million shares that would be issued upon conversion. The result of this calculation, representing the total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period.