Net Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024		July 2, 2023		June 30, 2024		July 2, 2023
	(in thousands, except per share amounts)				(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	186,273	$	120,050	$	250,470	$	203,581
Weighted average common shares-basic		157,804		154,760		155,426		155,332
Effect of dilutive potential common shares:
Convertible note hedge warrant shares (1)		4,930		8,876		6,896		8,929
Restricted stock units		726		323		573		389
Stock options		9		43		12		45
Employee stock purchase plan		1		7		2		7
Incremental shares from assumed conversion of convertible notes (2)		—		742		—		828
Dilutive potential common shares		5,666		9,991		7,483		10,198
Weighted average common shares-diluted		163,470		164,751		162,909		165,530
Net income per common share-basic	$	1.18	$	0.78	$	1.61	$	1.31
Net income per common share-diluted	$	1.14	$	0.73	$	1.54	$	1.23

(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 assumed conversion of the convertible notes were 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 notes, was divided by the average Teradyne stock price for the period.