Net Income per Share

12 Months Ended

Jan. 01, 2022

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 2021, 2020 and 2019 are as follows:

	2021		2020		2019
	(In thousands, except per share amounts)
Net income	$	695,955	$	590,644	$	988,979
Weighted average common shares used to calculate basic net income per share	273,504		273,728		273,239
Stock-based awards	5,354		5,913		7,276
Weighted average common shares used to calculate diluted net income per share	278,858		279,641		280,515
Net income per share – basic	$	2.54	$	2.16	$	3.62
Net income per share – diluted	$	2.50	$	2.11	$	3.53

The following table presents shares of Cadence’s common stock outstanding for fiscal 2021, 2020 and 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: 

	2021	2020	2019
	(In thousands)
Long-term market-based awards	—	383	1,097
Options to purchase shares of common stock	214	201	359
Non-vested shares of restricted stock	41	58	727
Total potential common shares excluded	255	642	2,183