Net Income Per Common Share (Tables)

12 Months Ended

Dec. 31, 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:


	2024		2023		2022
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	542,372	$	448,752	$	715,501
Weighted average common shares-basic		159,083		154,310		158,434
Effect of dilutive potential common shares:
Convertible note hedge warrant shares (1)		3,563		8,897		8,806
Restricted stock units		651		423		657
Stock options		11		34		52
Employee stock purchase rights		6		7		22
Incremental shares from assumed conversion of convertible notes (2)		—		633		1,763
Dilutive potential common shares		4,231		9,994		11,300
Weighted average common shares-diluted		163,314		164,304		169,734
Net income per common share-basic	$	3.41	$	2.91	$	4.52
Net income per common share-diluted	$	3.32	$	2.73	$	4.22

(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.