Net Income Per Share

9 Months Ended

Oct. 02, 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 nine months ended October 2, 2021 and September 26, 2020 are as follows:


	Three Months Ended				Nine Months Ended
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
	(In thousands, except per share amounts)
Net income	$	176,307	$	161,630	$	519,376	$	416,906
Weighted average common shares used to calculate basic net income per share	273,194		273,996		273,636		273,633
Stock-based awards	5,117		6,028		5,410		5,822
Weighted average common shares used to calculate diluted net income per share	278,311		280,024		279,046		279,455
Net income per share - basic	$	0.65	$	0.59	$	1.90	$	1.52
Net income per share - diluted	$	0.63	$	0.58	$	1.86	$	1.49

The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended October 2, 2021 and September 26, 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		Nine Months Ended
	October 2, 2021	September 26, 2020	October 2, 2021	September 26, 2020
	(In thousands)
Long-term market-based awards	—	105	—	510
Options to purchase shares of common stock	331	23	267	258
Non-vested shares of restricted stock	5	21	46	75
Total potential common shares excluded	336	149	313	843