Net Income Per Common Share

3 Months Ended

Apr. 02, 2023

. 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
	April 2,		April 3,
	2023		2022

	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	83,531	$	161,928

Weighted average common shares-basic		155,904		162,048
Effect of dilutive potential common shares:
Convertible note hedge warrant shares (1)		8,983		10,028
Incremental shares from assumed conversion of convertible notes (2)		914		2,541
Restricted stock units		453		875
Stock options		48		69
Employee stock purchase plan		6		14

Dilutive potential common shares		10,404		13,527

Weighted average common shares-diluted		166,308		175,575

Net income per common share-basic	$	0.54	$	1.00

Net income per common share-diluted	$	0.50	$	0.92

(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 months ended April 2, 2023 and April 3, 2022 excludes the effect of the potential vesting of 0.5 million and 0.1 million, respectively, of restricted stock units because the effect would have been anti-dilutive.