Net Income Per Common Share (Tables)

12 Months Ended

Dec. 31, 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:

	2021		2020		2019
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	1,014,589	$	784,147	$	467,468
Weighted average common shares-basic		164,960		166,120		170,425
Effect of dilutive potential common shares:
Convertible note hedge warrant shares (1)		9,956		6,989		2,698
Incremental shares from assumed conversion of convertible notes (2)		7,435		8,528		4,909
Restricted stock units		1,180		1,264		1,236
Stock options		86		131		178
Employee stock purchase rights		8		10		13
Dilutive potential common shares		18,665		16,922		9,034
Weighted average common shares-diluted		183,625		183,042		179,459
Net income per common share-basic	$	6.15	$	4.72	$	2.74
Net income per common share-diluted	$	5.53	$	4.28	$	2.60

(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 $39.55, multiplied by 14.6 million 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 the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.52, multiplied by 4.4 million 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.