Net Income per Share

3 Months Ended

Mar. 28, 2020

Earnings Per Share [Abstract]

NET INCOME PER SHARE

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 28, 2020 and March 30, 2019 are as follows:

	Three Months Ended
	March 28, 2020		March 30, 2019
	(In thousands, except per share amounts)
Net income	$	123,988	$	120,555
Weighted average common shares used to calculate basic net income per share	273,476		273,066
Stock-based awards	5,789		7,549
Weighted average common shares used to calculate diluted net income per share	279,265		280,615
Net income per share - basic	$	0.45	$	0.44
Net income per share - diluted	$	0.44	$	0.43

The following table presents shares of Cadence’s common stock outstanding for the three months ended March 28, 2020 and March 30, 2019 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 28, 2020	March 30, 2019
	(In thousands)
Long-term performance-based stock awards	1,386	228
Options to purchase shares of common stock	245	242
Non-vested shares of restricted stock	199	122
Total potential common shares excluded	1,830	592