Net Income per Share

9 Months Ended

Sep. 28, 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 nine months ended September 28, 2019 and September 29, 2018 are as follows:



	Three Months Ended				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
	(In thousands, except per share amounts)
Net income	$	101,514	$	99,318	$	329,304	$	247,352
Weighted average common shares used to calculate basic net income per share	273,329		273,716		273,224		273,718
Stock-based awards	7,337		7,930		7,593		7,673
Weighted average common shares used to calculate diluted net income per share	280,666		281,646		280,817		281,391
Net income per share - basic	$	0.37	$	0.36	$	1.21	$	0.90
Net income per share - diluted	$	0.36	$	0.35	$	1.17	$	0.88

The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 28, 2019 and September 29, 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		Nine Months Ended
	September 28, 2019	September 29, 2018	September 28, 2019	September 29, 2018
	(In thousands)
Long-term performance-based stock awards	1,386	—	279	50
Options to purchase shares of common stock	—	701	476	606
Non-vested shares of restricted stock	1,276	3	1,000	367
Total potential common shares excluded	2,662	704	1,755	1,023