| Computation of Basic and Diluted Net Income Per Common Share |
The following table sets forth the computation of basic and diluted
net income per common share:
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For the Three Months
Ended |
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For the Six Months
Ended |
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June 29,
2014 |
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June 30,
2013 |
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June 29,
2014 |
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June 30,
2013 |
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(in thousands, except per share amounts) |
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Net income for basic and diluted net income per share
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$ |
101,205 |
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$ |
66,556 |
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$ |
102,134 |
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$ |
73,145 |
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Weighted average common shares-basic
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194,408 |
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190,569 |
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193,860 |
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190,128 |
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Effect of dilutive potential common shares:
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Incremental shares from assumed conversion of convertible
notes (1)
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— |
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23,266 |
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10,026 |
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23,326 |
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Convertible note hedge warrant shares (2)
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20,406 |
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18,689 |
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20,674 |
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18,774 |
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Restricted stock units
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705 |
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772 |
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878 |
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947 |
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Stock options
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1,006 |
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1,554 |
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1,056 |
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1,615 |
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Employee stock purchase rights
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43 |
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59 |
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32 |
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43 |
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Dilutive potential common shares
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22,160 |
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44,340 |
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32,666 |
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44,705 |
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Weighted average common shares-diluted
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216,568 |
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234,909 |
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226,526 |
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234,833 |
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Net income per common share-basic
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$ |
0.52 |
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$ |
0.35 |
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$ |
0.53 |
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$ |
0.38 |
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Net income per common share-diluted
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$ |
0.47 |
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$ |
0.28 |
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$ |
0.45 |
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$ |
0.31 |
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| (1) |
Incremental shares from conversion of
the convertible notes for the six months ended June 29, 2014
were calculated using the difference between the average Teradyne
stock price from January 1, 2014 through March 12, 2014
and the conversion price of $5.4750, multiplied by
34.7 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 from
January 1, 2014 to March 12, 2014 and adjusted for the
number of days the convertible notes were outstanding during the
six months ended June 29, 2014. Incremental shares from
assumed conversion of the convertible notes for the three and six
months ended June 30, 2013 were calculated using the
difference between the average Teradyne stock price for the period
and the conversion price of $5.4750, multiplied by the
34.7 million shares to be issued upon conversion. 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 note hedge warrant shares
for the three and six months ended June 29, 2014 and
June 30, 2013 are calculated using the difference between the
average Teradyne stock price for the period and the warrant price
of $7.6389, multiplied by the weighted average warrant shares
outstanding. The result of this calculation, representing the total
intrinsic value of the warrant, is divided by the average Teradyne
stock price for the period. |
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