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Net Income Per Common Share | 6 Months Ended
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Jul. 01, 2018
Net Income Per Common Share | N. NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted net income per common share:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | July 1, 2018 |  |  | July 2, 2017 |  |  | July 1, 2018 |  |  | July 2, 2017 |
|  | (in thousands, except per share amounts) |
Net income for basic and diluted net income per share |  | $ | 101,037 |  |  | $ | 174,976 |  |  | $ | 188,010 |  |  | $ | 260,197 |
Weighted average common shares-basic |  |  | 190,730 |  |  |  | 198,774 |  |  |  | 192,992 |  |  |  | 199,390 |
Effect of dilutive potential common shares: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Incremental shares from assumed conversion of convertible notes (1) |  |  | 2,643 |  |  |  | 752 |  |  |  | 3,520 |  |  |  | 376 |
Convertible note hedge warrant shares (2) |  |  | — |  |  |  | — |  |  |  | 915 |  |  |  | — |
Restricted stock units |  |  | 1,219 |  |  |  | 1,622 |  |  |  | 1,444 |  |  |  | 1,576 |
Stock options |  |  | 274 |  |  |  | 318 |  |  |  | 298 |  |  |  | 354 |
Employee stock purchase plan |  |  | 43 |  |  |  | 63 |  |  |  | 28 |  |  |  | 36 |
Dilutive potential common shares |  |  | 4,179 |  |  |  | 2,755 |  |  |  | 6,205 |  |  |  | 2,342 |
Weighted average common shares-diluted |  |  | 194,909 |  |  |  | 201,529 |  |  |  | 199,197 |  |  |  | 201,732 |
Net income per common share-basic |  | $ | 0.53 |  |  | $ | 0.88 |  |  | $ | 0.97 |  |  | $ | 1.30 |
Net income per common share-diluted |  | $ | 0.52 |  |  | $ | 0.87 |  |  | $ | 0.94 |  |  | $ | 1.29 |
(1) | Incremental shares from 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 $31.80, multiplied by 14.5 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 $39.91, multiplied by 14.5 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.
The computation of diluted net income per common share for the three and six months ended July 1, 2018 excludes the effect of the potential vesting of 0.7 million and 0.6 million shares of restricted stock units because the effect would have been anti-dilutive. The computation of diluted net income per common share for the three and six months ended July 2, 2017 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares because the effect would have been anti-dilutive.

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- Definition The entire disclosure for earnings per share. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -URI http://asc.fasb.org/topic&trid=2144383 + Details
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Period Type: | duration