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Net Income (Loss) per Common Share
 12 Months Ended
Dec. 31, 2019
Net Income per Common Share
N.    NET INCOME PER COMMON SHARE
The following table sets forth the computation of basic and diluted net income per common share:
 
      2019      
 
  
      2018      
 
  
      2017      
 
  
(in thousands, except per share amounts)
 
Net income for basic and diluted net income per share
  $
467,468
     $
451,779
    $
257,692
 
                         
Weighted average common shares-basic
   
170,425
     
187,672
     
198,069
 
Effect of dilutive potential common shares:
   
     
     
 
Incremental shares from assumed conversion of convertible notes (1)
   
4,909
     
2,749
     
1,298
 
Convertible note hedge warrant shares (2)
   
2,698
     
485
     
112
 
Restricted stock units
   
1,236
     
1,385
     
1,800
 
Stock options
   
178
     
278
     
335
 
Employee stock purchase rights
   
13
     
36
     
27
 
                         
Dilutive potential common shares
   
9,034
     
4,933
     
3,572
 
                         
Weighted average common shares-diluted
   
179,459
     
192,605
     
201,641
 
                         
Net income per common share-basic
  $
2.74
     $
2.41
    $
1.30
 
                         
Net income per common share-diluted
  $
2.60
     $
2.35
    $
1.28
 
                         
 
(1)
Incremental shares from the 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 $31.62, 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 $39.68, 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 2018 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.5 million shares because the effect would have been anti-dilutive.
The computation of diluted net income per common share for 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.