Net Income per Common Share

9 Months Ended

Oct. 02, 2016

Net Income per Common Share

M. Net Income 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 Nine Months Ended
	October 2, 2016		October 4, 2015		October 2, 2016			October 4, 2015
	(in thousands, except per share amounts)
Net income (loss) for basic and diluted net income per share	$	63,794	$	71,453	$	(109,767	)	$	207,118
Weighted average common shares-basic		202,211		210,032		203,167			213,688
Effect of dilutive potential common shares:
Restricted stock units		1,282		1,103		—			994
Stock options		421		578		—			626
Employee stock purchase plan		15		23		—			40
Dilutive potential common shares		1,718		1,704		—			1,660
Weighted average common shares-diluted		203,929		211,736		203,167			215,348
Net income (loss) per common share-basic	$	0.32	$	0.34	$	(0.54	)	$	0.97
Net income (loss) per common share-diluted	$	0.31	$	0.34	$	(0.54	)	$	0.96

The computation of diluted net income per common share for the three months ended October 2, 2016 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares because the effect would have been anti-dilutive.

The computation of diluted net income per common share for the nine months ended October 2, 2016 excludes the effect of the potential exercise of all outstanding stock options and restricted stock units because Teradyne had a net loss and inclusion would be anti-dilutive.

The computation of diluted net income per common share for the three and nine months ended October 4, 2015 excludes the effect of the potential exercise of stock options to purchase approximately 0.2 million shares because the effect would have been anti-dilutive.