Net Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2019

Computation of Basic and Diluted Net Income (Loss) 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
	June 30, 2019		July 1, 2018		June 30, 2019		July 1, 2018
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	97,397	$	101,037	$	206,535	$	188,010

Weighted average common shares-basic		171,241		190,730		172,387		192,992
Effect of dilutive potential common shares:
Incremental shares from assumed conversion of convertible notes (1)		4,364		2,643		3,275		3,520
Convertible note hedge warrant shares (2)		1,778		—		889		915
Restricted stock units		1,002		1,219		1,012		1,444
Stock options		183		274		202		298
Employee stock purchase plan		22		43		16		28

Dilutive potential common shares		7,349		4,179		5,394		6,205

Weighted average common shares-diluted		178,590		194,909		177,781		199,197

Net income per common share-basic	$	0.57	$	0.53	$	1.20	$	0.97

Net income per common share-diluted	$	0.55	$	0.52	$	1.16	$	0.94

(1)

Incremental shares from assumed conversion of the convertible notes were 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 note 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.