Net Income per Share

9 Months Ended

Sep. 27, 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 and nine months ended September 27, 2014 and September 28, 2013 are as follows:

	Three Months Ended				Nine Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
	(In thousands, except per share amounts)
Net income	$	37,535	$	38,500	$	93,868	$	126,538
Weighted average common shares used to calculate basic net income per share	284,462		278,977		283,141		277,034
Convertible notes	—		9		—		11
2015 Warrants	17,580		11,587		15,070		11,042
Stock-based awards	7,953		6,385		7,384		6,444
Weighted average common shares used to calculate diluted net income per share	309,995		296,958		305,595		294,531
Net income per share - basic	$	0.13	$	0.14	$	0.33	$	0.46
Net income per share - diluted	$	0.12	$	0.13	$	0.31	$	0.43

The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 27, 2014 and September 28, 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		Nine Months Ended
	September 27, 2014	September 28, 2013	September 27, 2014	September 28, 2013
	(In thousands)
2013 Warrants	—	6,830	—	6,830
Options to purchase shares of common stock	1,403	5,639	3,479	6,048
Non-vested shares of restricted stock	53	3,280	24	1,099
Total potential common shares excluded	1,456	15,749	3,503	13,977