Computation of Basic and Diluted Net Income (Loss) Per Common Share |
The following table sets forth the computation of basic and diluted net income per common share:
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(in thousands, except per share amounts) |
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Net income for basic and diluted net income per share |
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$ |
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$ |
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$ |
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$ |
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Weighted average common shares-basic |
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Effect of dilutive potential common shares: |
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Incremental shares from assumed conversion of convertible notes (1) |
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Convertible note hedge warrant shares (2) |
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Employee stock purchase plan |
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Dilutive potential common shares |
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Weighted average common shares-diluted |
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Net income per common share-basic |
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$ |
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$ |
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$ |
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$ |
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Net income per common share-diluted |
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$ |
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$ |
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$ |
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$ |
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(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. | |