Net Income Per Common Share

6 Months Ended

Jul. 03, 2022

N. 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 Six Months Ended
	July 3, 2022		July 4, 2021		July 3, 2022		July 4, 2021

	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	197,787	$	328,319	$	359,715	$	533,831

Weighted average common shares-basic		159,563		165,995		160,805		166,243
Effect of dilutive potential common shares:
Convertible note hedge warrant shares (1)		9,029		10,073		9,528		9,751
Incremental shares from assumed conversion of convertible notes (2)		1,900		9,578		2,220		9,944
Restricted stock units		581		1,015		730		1,205
Stock options		54		78		61		93
Employee stock purchase plan		32		11		23		9

Dilutive potential common shares		11,596		20,755		12,562		21,002

Weighted average common shares-diluted		171,159		186,750		173,367		187,245

Net income per common share-basic	$	1.24	$	1.98	$	2.24	$	3.21

Net income per common share-diluted	$	1.16	$	1.76	$	2.07	$	2.85

(1)

Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by

the number of warrant

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.

(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, multiplied by

the number of convertible notes

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.

The computation of diluted net income per common share for the three and six months ended July 3, 2022 excludes the effect of the potential vesting of 0.1 million and 0.2 million, respectively, 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 six months ended July 4, 2021 excludes the effect of the potential vesting of 0.1 million and 0.1 million, respectively, of restricted stock units because the effect would have been anti-dilutive.