Net Income Per Common Share (Tables)

3 Months Ended

Mar. 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:

	For the Three Months  Ended
	March 31, 2024		April 2, 2023
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	64,197	$	83,531
Weighted average common shares-basic		153,047		155,904
Effect of dilutive potential common shares:
Convertible note hedge warrant shares (1)		8,862		8,983
Incremental shares from assumed conversion of convertible notes (2)		—		914
Restricted stock units		419		453
Stock options		16		48
Employee stock purchase plan		4		6
Dilutive potential common shares		9,301		10,404
Weighted average common shares-diluted		162,348		166,308
Net income per common share-basic	$	0.42	$	0.54
Net income per common share-diluted	$	0.40	$	0.50

(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.