Net Income Per Common Share (Tables)

12 Months Ended

Dec. 31, 2022

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:


	2022		2021		2020
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	715,501	$	1,014,589	$	784,147

Weighted average common shares-basic		158,434		164,960		166,120
Effect of dilutive potential common shares:
Convertible note hedge warrant shares (1)		8,806		9,956		6,989
Incremental shares from assumed conversion of convertible notes (2)		1,763		7,435		8,528
Restricted stock units		657		1,180		1,264
Stock options		52		86		131
Employee stock purchase rights		22		8		10

Dilutive potential common shares		11,300		18,665		16,922

Weighted average common shares-diluted		169,734		183,625		183,042

Net income per common share-basic	$	4.52	$	6.15	$	4.72

Net income per common share-diluted	$	4.22	$	5.53	$	4.28

(1)

Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant 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.

(2)

Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes 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.