Net Income per Share

6 Months Ended

Jul. 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 and six months ended July 1, 2017 and July 2, 2016 are as follows:



	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
	(In thousands, except per share amounts)
Net income	$	69,127	$	49,335	$	137,386	$	99,897
Weighted average common shares used to calculate basic net income per share	271,887		288,191		271,030		292,403
Stock-based awards	7,639		7,010		7,601		6,915
Weighted average common shares used to calculate diluted net income per share	279,526		295,201		278,631		299,318
Net income per share - basic	$	0.25	$	0.17	$	0.51	$	0.34
Net income per share - diluted	$	0.25	$	0.17	$	0.49	$	0.33

The following table presents shares of Cadence’s common stock outstanding for the three and six months ended July 1, 2017 and July 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		Six Months Ended
	July 1, 2017	July 2, 2016	July 1, 2017	July 2, 2016
	(In thousands)
Long-term performance-based stock awards	225	1,141	229	888
Options to purchase shares of common stock	820	1,279	606	1,014
Non-vested shares of restricted stock	13	19	87	51
Total potential common shares excluded	1,058	2,439	922	1,953