Net Income per Share

12 Months Ended

Jan. 02, 2016

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 2015, 2014 and 2013 are as follows:



	2015		2014		2013
	(In thousands, except per share amounts)
Net income	$	252,417	$	158,898	$	164,243
Weighted-average common shares used to calculate basic net income per share	288,018		283,349		277,796
Convertible notes	—		—		8
2015 Warrants	16,434		15,930		10,549
Stock-based awards	7,850		7,496		6,211
Weighted-average common shares used to calculate diluted net income per share	312,302		306,775		294,564
Net income per share - basic	$	0.88	$	0.56	$	0.59
Net income per share - diluted	$	0.81	$	0.52	$	0.56

The 2015 Warrants expired on various dates from September 2015 through December 2015, and Cadence issued approximately 23.1 million shares of common stock to the purchasers of the 2015 Warrants.

The following table presents shares of Cadence’s common stock outstanding for fiscal 2015, 2014 and 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:



	2015	2014	2013
	(In thousands)
2013 Warrants*	—	—	6,830
Options to purchase shares of common stock	1,029	2,773	5,973
Non-vested shares of restricted stock	60	18	846
Total potential common shares excluded	1,089	2,791	13,649

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