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
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	119,981	$	103,420	$	307,991	$	363,616

Weighted average common shares-basic		185,744		197,485		190,576		198,755
Effect of dilutive potential common shares:
Incremental shares from assumed conversion of convertible notes (1)		3,025		1,144		3,356		632
Convertible note hedge warrant shares (2)		108		—		646		—
Restricted stock units		1,331		1,832		1,406		1,663
Stock options		275		306		290		337
Employee stock purchase plan		22		8		26		26

Dilutive potential common shares		4,761		3,290		5,724		2,658

Weighted average common shares-diluted		190,505		200,775		196,300		201,413

Net income per common share-basic	$	0.65	$	0.52	$	1.62	$	1.83

Net income per common share-diluted	$	0.63	$	0.52	$	1.57	$	1.81

(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.