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 months ended March 31, 2018 and April 1, 2017 are as follows:



	Three Months Ended
	March 31, 2018		April 1, 2017
	(In thousands, except per share amounts)
Net income	$	72,885	$	68,259
Weighted average common shares used to calculate basic net income per share	273,773		270,173
Stock-based awards	7,878		7,563
Weighted average common shares used to calculate diluted net income per share	281,651		277,736
Net income per share - basic	$	0.27	$	0.25
Net income per share - diluted	$	0.26	$	0.25

The following table presents shares of Cadence’s common stock outstanding for the three months ended March 31, 2018 and April 1, 2017 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
	March 31, 2018	April 1, 2017
	(In thousands)
Long-term performance-based stock awards	150	232
Options to purchase shares of common stock	416	391
Non-vested shares of restricted stock	279	161
Total potential common shares excluded	845	784