Net Income Per Common Share

9 Months Ended

Sep. 29, 2024

O. 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 Nine Months Ended
	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
	(in thousands, except per share amounts)				(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	145,649	$	128,116	$	396,119	$	331,698
Weighted average common shares-basic		163,002		153,762		157,951		154,809
Effect of dilutive potential common shares:
Restricted stock units		768		455		637		410
Convertible note hedge warrant shares (1)		460		9,168		4,751		9,009
Stock options		13		26		13		39
Employee stock purchase plan		10		10		5		8
Incremental shares from assumed conversion of convertible notes (2)		—		629		—		762
Dilutive potential common shares		1,251		10,288		5,406		10,228
Weighted average common shares-diluted		164,253		164,050		163,357		165,037
Net income per common share-basic	$	0.89	$	0.83	$	2.51	$	2.14
Net income per common share-diluted	$	0.89	$	0.78	$	2.42	$	2.01

(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.

The computation of diluted net income per common share for the three and nine months ended September 29, 2024, excludes the effect of the potential vesting of 0.1 million and 0.5 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 nine months ended October 1, 2023, excludes the effect of the potential vesting of 0.1 million and 0.4 million, respectively, of restricted stock units because the effect would have been anti-dilutive.