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Net Income Per Common Share | 9 Months Ended
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Sep. 27, 2020
Net Income per Common Share | O. 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 Nine Months Ended |
|  | September 27, |  |  | September 29, |  |  | September 27, |  |  | September 29, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
|  | (in thousands, except per share amounts) |
Net income for basic and diluted net income per share |  | $ | 222,718 |  |  | $ | 135,860 |  |  | $ | 587,815 |  |  | $ | 342,395 |
Weighted average common shares-basic |  |  | 166,014 |  |  |  | 169,641 |  |  |  | 166,131 |  |  |  | 171,471 |
Effect of dilutive potential common shares: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Incremental shares from assumed conversion of convertible notes (1) |  |  | 9,156 |  |  |  | 5,800 |  |  |  | 8,029 |  |  |  | 4,117 |
Convertible note hedge warrant shares (2) |  |  | 7,775 |  |  |  | 3,580 |  |  |  | 6,364 |  |  |  | 1,786 |
Restricted stock units |  |  | 1,237 |  |  |  | 1,313 |  |  |  | 1,104 |  |  |  | 1,112 |
Stock options |  |  | 141 |  |  |  | 155 |  |  |  | 136 |  |  |  | 186 |
Employee stock purchase plan |  |  | 15 |  |  |  | 5 |  |  |  | 13 |  |  |  | 13 |
Dilutive potential common shares |  |  | 18,324 |  |  |  | 10,853 |  |  |  | 15,646 |  |  |  | 7,214 |
Weighted average common shares-diluted |  |  | 184,338 |  |  |  | 180,494 |  |  |  | 181,777 |  |  |  | 178,685 |
Net income per common share-basic |  | $ | 1.34 |  |  | $ | 0.80 |  |  | $ | 3.54 |  |  | $ | 2.00 |
Net income per common share-diluted |  | $ | 1.21 |  |  | $ | 0.75 |  |  | $ | 3.23 |  |  | $ | 1.92 |
(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 $31.57, multiplied by 14.6 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 $39.62, multiplied by 14.6 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 nine months ended September 27, 2020 excludes the effect of the potential vesting of 0.1 million and 0.2 million, respectively, 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 nine months ended September 29, 2019 excludes the effect of the potential vesting of 0.1 million of stock options, because the effect would have been anti-dilutive. The computation of diluted net income per share for the nine months ended September 29, 2019 excludes the effect of the potential vesting of 0.2 million of restricted stock units, because the effect would have been anti-dilutive.

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- Definition The entire disclosure for earnings per share. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=109243012&loc=SL65017193-207537 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -URI http://asc.fasb.org/topic&trid=2144383 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3630-109257 + Details
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