Net Income per Share

6 Months Ended

Jul. 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 the three and six months ended July 2, 2016 and July 4, 2015 are as follows:



	Three Months Ended				Six Months Ended
	July 2, 2016		July 4, 2015		July 2, 2016		July 4, 2015
	(In thousands, except per share amounts)
Net income	$	49,335	$	58,160	$	99,897	$	94,419
Weighted average common shares used to calculate basic net income per share	288,191		285,297		292,403		284,910
2015 Warrants	—		20,635		—		19,773
Stock-based awards	7,010		7,733		6,915		8,073
Weighted average common shares used to calculate diluted net income per share	295,201		313,665		299,318		312,756
Net income per share - basic	$	0.17	$	0.20	$	0.34	$	0.33
Net income per share - diluted	$	0.17	$	0.19	$	0.33	$	0.30

The 2015 Warrants expired in December 2015. For an additional description of the 2015 Warrants, see Note 3 in the notes to consolidated financial statements in Cadence’s Annual Report on Form 10-K for the fiscal year ended January 2, 2016.

The following table presents shares of Cadence’s common stock outstanding for the three and six months ended July 2, 2016 and July 4, 2015 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 2, 2016	July 4, 2015	July 2, 2016	July 4, 2015
	(In thousands)
Options to purchase shares of common stock	1,279	1,503	1,014	1,308
Non-vested shares of restricted stock	19	23	51	18
Total potential common shares excluded	1,298	1,526	1,065	1,326