Net Income Per Common Share (Tables)

9 Months Ended

Oct. 01, 2023

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 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	128,116	$	183,485	$	331,698	$	543,200
Weighted average common shares-basic		153,762		156,364		154,809		159,325
Effect of dilutive potential common shares:
Convertible note hedge warrant shares (1)		9,168		8,284		9,009		9,114
Incremental shares from assumed conversion of convertible notes (2)		629		1,453		762		1,965
Restricted stock units		455		564		410		673
Stock options		26		45		39		56
Employee stock purchase plan		10		23		8		23
Dilutive potential common shares		10,288		10,369		10,228		11,831
Weighted average common shares-diluted		164,050		166,733		165,037		171,156
Net income per common share-basic	$	0.83	$	1.17	$	2.14	$	3.41
Net income per common share-diluted	$	0.78	$	1.10	$	2.01	$	3.17

(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 notes, was divided by the average Teradyne stock price for the period.