NET INCOME PER SHARE

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 September 30, 2017 and October 1, 2016 are as follows:



	Three Months Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
	(In thousands, except per share amounts)
Net income	$	81,157	$	64,712	$	218,543	$	164,609
Weighted average common shares used to calculate basic net income per share	273,156		280,622		271,739		288,476
Stock-based awards	8,244		6,851		7,815		6,893
Weighted average common shares used to calculate diluted net income per share	281,400		287,473		279,554		295,369
Net income per share - basic	$	0.30	$	0.23	$	0.80	$	0.57
Net income per share - diluted	$	0.29	$	0.23	$	0.78	$	0.56

The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 30, 2017 and October 1, 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		Nine Months Ended
	September 30, 2017	October 1, 2016	September 30, 2017	October 1, 2016
	(In thousands)
Long-term performance-based stock awards	100	1,250	186	1,008
Options to purchase shares of common stock	—	160	404	729
Non-vested shares of restricted stock	12	7	62	36
Total potential common shares excluded	112	1,417	652	1,773