Net Income per Share

6 Months Ended

Jul. 04, 2015

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 six months ended July 4, 2015 and June 28, 2014 are as follows:



	Three Months Ended				Six Months Ended
	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
	(In thousands, except per share amounts)
Net income	$	58,160	$	23,263	$	94,419	$	56,333
Weighted average common shares used to calculate basic net income per share	285,297		283,344		284,910		282,480
2015 Warrants	20,635		15,054		19,773		13,815
Stock-based awards	7,733		7,357		8,073		7,100
Weighted average common shares used to calculate diluted net income per share	313,665		305,755		312,756		303,395
Net income per share - basic	$	0.20	$	0.08	$	0.33	$	0.20
Net income per share - diluted	$	0.19	$	0.08	$	0.30	$	0.19

The following table presents shares of Cadence’s common stock outstanding for the three and six months ended July 4, 2015 and June 28, 2014 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		Six Months Ended
	July 4, 2015	June 28, 2014	July 4, 2015	June 28, 2014
	(In thousands)
Options to purchase shares of common stock	1,503	4,399	1,308	4,517
Non-vested shares of restricted stock	23	8	18	9
Total potential common shares excluded	1,526	4,407	1,326	4,526