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


	For the Three Months Ended
	April 1, 2018		April 2, 2017
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	86,974	$	85,221

Weighted average common shares-basic		195,255		200,005
Effect of dilutive potential common shares:
Incremental shares from assumed conversion of convertible notes (1)		4,398		—
Convertible note hedge warrant shares (2)		1,830		—
Restricted stock units		1,666		1,533
Stock options		321		390
Employee stock purchase plan		14		8

Dilutive potential common shares		8,229		1,931

Weighted average common shares-diluted		203,484		201,936

Net income per common share-basic	$	0.45	$	0.43

Net income per common share-diluted	$	0.43	$	0.42

(1)

Incremental shares from assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.80, multiplied by 14.5 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.

(2)

Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.91, multiplied by 14.5 million 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.