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 six months ended June 30, 2018 and July 1, 2017 are as follows:



	Three Months Ended				Six Months Ended
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
	(In thousands, except per share amounts)
Net income	$	75,149	$	69,127	$	148,034	$	137,386
Weighted average common shares used to calculate basic net income per share	273,564		271,887		273,703		271,030
Stock-based awards	7,210		7,639		7,544		7,601
Weighted average common shares used to calculate diluted net income per share	280,774		279,526		281,247		278,631
Net income per share - basic	$	0.27	$	0.25	$	0.54	$	0.51
Net income per share - diluted	$	0.27	$	0.25	$	0.53	$	0.49

The following table presents shares of Cadence’s common stock outstanding for the three and six months ended June 30, 2018 and July 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		Six Months Ended
	June 30, 2018	July 1, 2017	June 30, 2018	July 1, 2017
	(In thousands)
Long-term performance-based stock awards	—	225	75	229
Options to purchase shares of common stock	701	820	559	606
Non-vested shares of restricted stock	818	13	549	87
Total potential common shares excluded	1,519	1,058	1,183	922