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Net Income Per Common Share (Tables)
 9 Months Ended
Oct. 03, 2021
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:
 
 
  
For the Three Months

Ended
 
  
For the Nine Months

Ended
 
 
  
October 3,
2021
 
  
September 27,
2020
 
  
October 3,
2021
 
  
September 27,
2020
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  
(in thousands, except per share amounts)
 
Net income for basic and diluted net income per share
    $ 256,718      $ 222,718      $ 790,549      $ 587,815  
    
 
 
     
 
 
     
 
 
     
 
 
  
Weighted average common shares-basic
      164,583        166,014        165,690        166,131  
Effect of dilutive potential common shares:
                                    
Convertible note hedge warrant shares (1)
      9,819        7,775        9,774        6,364  
Incremental shares from assumed conversion of convertible notes (2)
      6,464        9,156        8,784        8,029  
Restricted stock units
      1,035        1,237        1,147        1,104  
Stock options
      73        141        87        136  
Employee stock purchase plan
      13        15        10        13  
    
 
 
     
 
 
     
 
 
     
 
 
  
Dilutive potential common shares
      17,404        18,324        19,802        15,646  
    
 
 
     
 
 
     
 
 
     
 
 
  
Weighted average common shares-diluted
      181,987        184,338        185,492        181,777  
    
 
 
     
 
 
     
 
 
     
 
 
  
Net income per common share-basic
    $ 1.56      $ 1.34      $ 4.77      $ 3.54  
    
 
 
     
 
 
     
 
 
     
 
 
  
Net income per common share-diluted
    $ 1.41      $ 1.21      $ 4.26      $ 3.23  
    
 
 
     
 
 
     
 
 
     
 
 
  
 
(1)
Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.56
 
and $39.58, multiplied by
14.6 
million shares and 14.6 million shares for the three and nine months ended October 3, 2021, respectively. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period.
(2)
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 $31.53
 
and $31.54, multiplied by
8.7 
million shares and 11.7 million shares, for the three and nine months ended October 3, 2021, respectively. 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.