Net Income per Share

3 Months Ended

Mar. 29, 2014

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 the three months ended March 29, 2014 and March 30, 2013 are as follows:

	Three Months Ended
	March 29, 2014		March 30, 2013
	(In thousands, except per share amounts)
Net income	$	33,070	$	78,609
Weighted average common shares used to calculate basic net income per share	281,615		274,936
Convertible notes	—		11
2015 Warrants	12,576		10,668
Stock-based awards	6,843		6,536
Weighted average common shares used to calculate diluted net income per share	301,034		292,151
Net income per share - basic	$	0.12	$	0.29
Net income per share - diluted	$	0.11	$	0.27

The following table presents shares of Cadence’s common stock outstanding for the three months ended March 29, 2014 and March 30, 2013 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:

	Three Months Ended
	March 29, 2014	March 30, 2013
	(In thousands)
2013 Warrants	1,518	6,830
Options to purchase shares of common stock	4,634	6,754
Non-vested shares of restricted stock	11	—
Total potential common shares excluded	6,163	13,584