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Net Income (Loss) per Common Share
 6 Months Ended
Jul. 02, 2017
Net Income (Loss) per Common Share

M. NET INCOME (LOSS) PER COMMON SHARE

The following table sets forth the computation of basic and diluted net income (loss) per common share:

 

    For the Three Months
Ended		     For the Six Months
Ended		  
    July 2,
2017		     July 3,
2016		     July 2,
2017		     July 3,
2016		  
    (in thousands, except per share amounts)  

Net income (loss) for basic and diluted net income (loss) per common share

   $ 174,976     $ (223,546 )    $ 260,197     $ (173,560 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average common shares-basic

     198,774       203,018       199,390       203,645  

Effect of dilutive potential common shares:

        

Restricted stock units

     1,622       —         1,576       —    

Incremental shares from assumed conversion of convertible note (1)

     752       —         376       —    

Stock options

     318       —         354       —    

Employee stock purchase plan

     63       —         36       —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Dilutive potential common shares

     2,755       —         2,342       —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average common shares-diluted

     201,529       203,018       201,732       203,645  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) per common share-basic

   $ 0.88     $ (1.10 )    $ 1.30     $ (0.85 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) per common share-diluted

   $ 0.87     $ (1.10 )    $ 1.29     $ (0.85 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Incremental shares from assumed conversion of the convertible notes for the three and six months ended July 2, 2017 are calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.84, multiplied by the 14.4 million shares that would be issued upon conversion. The result of this calculation, representing the total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period.

The computation of diluted net income per common share for the three months ended July 2, 2017 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 three and six months ended July 3, 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.