XML 44 R25.htm IDEA: XBRL DOCUMENT v3.19.1
Net Income Per Common Share
 3 Months Ended
Mar. 31, 2019
Net Income (Loss) per Common Share
P. 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
 
 
 
March 31,

2019
 
 
April 1,

2018
 
 
 
(in thousands, except per share amounts)
 
Net income for basic and diluted net income per share
 
$
109,138
 
 
$
86,974
 
Weighted average common shares-basic
 
 
173,532
 
 
 
195,255
 
Effect of dilutive potential common shares:
 
 
 
 
 
 
 
 
Incremental shares from assumed conversion of convertible notes (1)
 
 
2,186
 
 
 
4,398
 
Convertible note hedge warrant shares (2)
 
 
—
 
 
 
1,830
 
Restricted stock units
 
 
1,021
 
 
 
1,666
 
Stock options
 
 
222
 
 
 
321
 
Employee stock purchase plan
 
 
11
 
 
 
14
 
Dilutive potential common shares
 
 
3,440
 
 
 
8,229
 
Weighted average common shares-diluted
 
 
176,972
 
 
 
203,484
 
Net income per common share-basic
 
$
0.63
 
 
$
0.45
 
Net income per common share-diluted
 
$
0.62
 
 
$
0.43
 
 
   
(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 $31.70, 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 $39.78, 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 months ended March 31, 2019 excludes the effect of the potential vesting of 0.6 million of restricted stock units because the effect would have been anti-dilutive.
The computation of diluted net income per common share for the three months ended April 1, 2018 excludes the effect of the potential vesting of 0.4 million shares of restricted stock units because the effect would have been anti-dilutive.