Net Income per Share

9 Months Ended

Oct. 01, 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 nine months ended October 1, 2016 and October 3, 2015 are as follows:



	Three Months Ended				Nine Months Ended
	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
	(In thousands, except per share amounts)
Net income	$	64,712	$	77,624	$	164,609	$	172,043
Weighted average common shares used to calculate basic net income per share	280,622		284,818		288,476		284,880
2015 Warrants	—		20,548		—		20,031
Stock-based awards	6,851		7,820		6,893		7,988
Weighted average common shares used to calculate diluted net income per share	287,473		313,186		295,369		312,899
Net income per share - basic	$	0.23	$	0.27	$	0.57	$	0.60
Net income per share - diluted	$	0.23	$	0.25	$	0.56	$	0.55

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 nine months ended October 1, 2016 and October 3, 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		Nine Months Ended
	October 1, 2016	October 3, 2015	October 1, 2016	October 3, 2015
	(In thousands)
Long-term performance-based stock awards	1,250	—	1,008	—
Options to purchase shares of common stock	160	1,472	729	1,362
Non-vested shares of restricted stock	7	169	36	68
Total potential common shares excluded	1,417	1,641	1,773	1,430