Net Income per Share

6 Months Ended

Jun. 29, 2019

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 29, 2019 and June 30, 2018 are as follows:



	Three Months Ended				Six Months Ended
	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
	(In thousands, except per share amounts)
Net income	$	107,235	$	75,149	$	227,790	$	148,034
Weighted average common shares used to calculate basic net income per share	273,159		273,564		273,155		273,703
Stock-based awards	7,895		7,210		7,722		7,544
Weighted average common shares used to calculate diluted net income per share	281,054		280,774		280,877		281,247
Net income per share - basic	$	0.39	$	0.27	$	0.83	$	0.54
Net income per share - diluted	$	0.38	$	0.27	$	0.81	$	0.53

The following table presents shares of Cadence’s common stock outstanding for the three and six months ended June 29, 2019 and June 30, 2018 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 29, 2019	June 30, 2018	June 29, 2019	June 30, 2018
	(In thousands)
Long-term performance-based stock awards	1,386	—	807	75
Options to purchase shares of common stock	596	701	419	559
Non-vested shares of restricted stock	29	818	76	549
Total potential common shares excluded	2,011	1,519	1,302	1,183