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Net Income Per Common Share
 9 Months Ended
Sep. 29, 2019
Net Income per Common Share
P. 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
 
  
September 29,
2019
 
  
September 30,
2018
 
  
September 29,
2019
 
  
September 30,
2018
 
  
(in thousands, except per share amounts)
 
Net income for basic and diluted net income per share
  $
135,860
    $
119,981
    $
342,395
    $
307,991
 
Weighted average common shares-basic
   
169,641
     
185,744
     
171,471
     
190,576
 
Effect of dilutive potential common shares:
   
     
     
     
 
Incremental shares from assumed conversion of convertible notes (1)
   
5,800
     
3,025
     
4,117
     
3,356
 
Convertible note hedge warrant shares (2)
   
3,580
     
108
     
1,786
     
646
 
Restricted stock units
   
1,313
     
1,331
     
1,112
     
1,406
 
Stock options
   
155
     
275
     
186
     
290
 
Employee stock purchase plan
   
5
     
22
     
13
     
26
 
                                 
Dilutive potential common shares
   
10,853
     
4,761
     
7,214
     
5,724
 
                                 
Weighted average common shares-diluted
   
180,494
     
190,505
     
178,685
     
196,300
 
                                 
Net income per common share-basic
  $
0.80
    $
0.65
    $
2.00
    $
1.62
 
                                 
Net income per common share-diluted
  $
0.75
    $
0.63
    $
1.92
    $
1.57
 
                                 
 
(1) Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.70, 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 note hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.78, 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.
The computation of diluted net income per common share for the three and nine months ended September 29, 2019 excludes the effect of the potential vesting of 0.1 million of stock options
,
because the effect would have been anti-dilutiv​​​​​​​e.
The computation of diluted net income per share for the nine months ended September 29, 2019 excludes the effect of the potential vesting of 0.2 million of restricted stock units because the effect would have been anti-dilutive.
The computation of diluted net income per common share for the three and nine months ended September 30, 2018 excludes the effect of the potential vesting of 0.5 million shares of restricted stock units because the effect would have been anti-dilutive.