Net Income per Share

12 Months Ended

Jan. 02, 2021

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 fiscal 2020, 2019 and 2018 are as follows:

	2020		2019		2018
	(In thousands, except per share amounts)
Net income	$	590,644	$	988,979	$	345,777
Weighted-average common shares used to calculate basic net income per share	273,728		273,239		273,729
Stock-based awards	5,913		7,276		7,415
Weighted-average common shares used to calculate diluted net income per share	279,641		280,515		281,144
Net income per share – basic	$	2.16	$	3.62	$	1.26
Net income per share – diluted	$	2.11	$	3.53	$	1.23

The following table presents shares of Cadence’s common stock outstanding for fiscal 2020, 2019 and 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: 

	2020	2019	2018
	(In thousands)
Long-term market-based awards	383	1,097	50
Options to purchase shares of common stock	201	359	637
Non-vested shares of restricted stock	58	727	290
Total potential common shares excluded	642	2,183	977