Net Income Per Share

3 Months Ended

Apr. 03, 2021

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 April 3, 2021 and March 28, 2020 are as follows:


	Three Months Ended
		April 3, 2021		March 28, 2020
		(In thousands, except per share amounts)
Net income		$	187,169	$	123,988
Weighted average common shares used to calculate basic net income per share		274,021		273,476
Stock-based awards		6,119		5,789
Weighted average common shares used to calculate diluted net income per share		280,140		279,265
Net income per share - basic		$	0.68	$	0.45
Net income per share - diluted		$	0.67	$	0.44

The following table presents shares of Cadence’s common stock outstanding for the three months ended April 3, 2021 and March 28, 2020 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
		April 3, 2021	March 28, 2020
		(In thousands)
Long-term market-based awards		—	1,386
Options to purchase shares of common stock		138	245
Non-vested shares of restricted stock		58	199
Total potential common shares excluded		196	1,830