Net Income per Share

12 Months Ended

Jan. 03, 2015

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 2014, 2013 and 2012 are as follows:

	2014		2013		2012
	(In thousands, except per share amounts)
Net income	$	158,898	$	164,243	$	439,948
Weighted-average common shares used to calculate basic net income per share	283,349		277,796		270,479
Convertible notes	—		8		11
2015 Warrants	15,930		10,549		4,237
Stock-based awards	7,496		6,211		5,940
Weighted-average common shares used to calculate diluted net income per share	306,775		294,564		280,667
Net income per share - basic	$	0.56	$	0.59	$	1.63
Net income per share - diluted	$	0.52	$	0.56	$	1.57

The following table presents shares of Cadence’s common stock outstanding for fiscal 2014, 2013 and 2012 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:

	2014	2013	2012
	(In thousands)
2013 Warrants*	—	6,830	6,830
Options to purchase shares of common stock	2,773	5,973	11,501
Non-vested shares of restricted stock	18	846	70
Total potential common shares excluded	2,791	13,649	18,401

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* These warrants expired on various dates from February 2014 through April 2014.