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 29, 2018 and September 30, 2017 are as follows:



	Three Months Ended				Nine Months Ended
	September 29, 2018		September 30, 2017		September 29, 2018		September 30, 2017
	(In thousands, except per share amounts)
Net income	$	99,318	$	81,157	$	247,352	$	218,543
Weighted average common shares used to calculate basic net income per share	273,716		273,156		273,718		271,739
Stock-based awards	7,930		8,244		7,673		7,815
Weighted average common shares used to calculate diluted net income per share	281,646		281,400		281,391		279,554
Net income per share - basic	$	0.36	$	0.30	$	0.90	$	0.80
Net income per share - diluted	$	0.35	$	0.29	$	0.88	$	0.78

The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 29, 2018 and September 30, 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		Nine Months Ended
	September 29, 2018	September 30, 2017	September 29, 2018	September 30, 2017
	(In thousands)
Long-term performance-based stock awards	—	100	50	186
Options to purchase shares of common stock	701	—	606	404
Non-vested shares of restricted stock	3	12	367	62
Total potential common shares excluded	704	112	1,023	652