Net Income Per Share

6 Months Ended

Jul. 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 and six months ended July 3, 2021 and June 27, 2020 are as follows:


	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
	(In thousands, except per share amounts)
Net income	$	155,900	$	131,288	$	343,069	$	255,276
Weighted average common shares used to calculate basic net income per share	273,565		273,432		273,843		273,488
Stock-based awards	4,993		5,648		5,556		5,719
Weighted average common shares used to calculate diluted net income per share	278,558		279,080		279,399		279,207
Net income per share - basic	$	0.57	$	0.48	$	1.25	$	0.93
Net income per share - diluted	$	0.56	$	0.47	$	1.23	$	0.91

The following table presents shares of Cadence’s common stock outstanding for the three and six months ended July 3, 2021 and June 27, 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		Six Months Ended
	July 3, 2021	June 27, 2020	July 3, 2021	June 27, 2020
	(In thousands)
Long-term market-based awards	—	40	—	713
Options to purchase shares of common stock	331	506	235	376
Non-vested shares of restricted stock	75	4	67	102
Total potential common shares excluded	406	550	302	1,191