Net Income per Share

3 Months Ended

Apr. 01, 2017

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 months ended April 1, 2017 and April 2, 2016 are as follows:



	Three Months Ended
	April 1, 2017		April 2, 2016
	(In thousands, except per share amounts)
Net income	$	68,259	$	50,562
Weighted average common shares used to calculate basic net income per share	270,173		296,615
Stock-based awards	7,563		6,819
Weighted average common shares used to calculate diluted net income per share	277,736		303,434
Net income per share - basic	$	0.25	$	0.17
Net income per share - diluted	$	0.25	$	0.17

The following table presents shares of Cadence’s common stock outstanding for the three months ended April 1, 2017 and April 2, 2016 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
	April 1, 2017	April 2, 2016
	(In thousands)
Long-term performance-based stock awards	232	635
Options to purchase shares of common stock	391	749
Non-vested shares of restricted stock	161	83
Total potential common shares excluded	784	1,467