Net Income per Share

12 Months Ended

Dec. 29, 2012

Earnings Per Share [Abstract]

NET INCOME PER SHARE

NET INCOME PER SHARE

Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting.

The calculations for basic and diluted net income per share for fiscal 2012, 2011 and 2010 are as follows:

	2012		2011		2010
	(In thousands, except per share amounts)
Net income	$	439,948	$	72,229	$	126,538
Weighted average common shares used to calculate basic net income per share	270,479		263,892		260,787
2023 Notes	11		11		11
2015 Warrants	4,237		—		—
Stock-based compensation	5,940		6,913		5,073
Weighted average common shares used to calculate diluted net income per share	280,667		270,816		265,871
Net income per share - basic	$	1.63	$	0.27	$	0.49
Net income per share - diluted	$	1.57	$	0.27	$	0.48

The following table presents shares of Cadence's common stock outstanding for fiscal 2012, 2011 and 2010 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive:

	2012	2011	2010
	(In thousands)
2015 Warrants	—	46,382	46,382
2011 Warrants and 2013 Warrants	6,830	13,922	13,922
Options to purchase shares of common stock	11,501	17,580	22,100
Non-vested shares of restricted stock	70	800	1,808
Total potential common shares excluded	18,401	78,684	84,212