Net Income Per Share

6 Months Ended

Jul. 02, 2022

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 2, 2022 and July 3, 2021 are as follows:


	Three Months Ended				Six Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
	(In thousands, except per share amounts)
Net income	$	186,920	$	155,900	$	422,255	$	343,069
Weighted average common shares used to calculate basic net income per share	271,520		273,565		272,028		273,843
Stock-based awards	3,652		4,993		4,069		5,556
Weighted average common shares used to calculate diluted net income per share	275,172		278,558		276,097		279,399
Net income per share - basic	$	0.69	$	0.57	$	1.55	$	1.25
Net income per share - diluted	$	0.68	$	0.56	$	1.53	$	1.23

The following table presents shares of Cadence’s common stock outstanding for the three and six months ended July 2, 2022 and July 3, 2021 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 2, 2022	July 3, 2021	July 2, 2022	July 3, 2021
	(In thousands)
Long-term market-based awards	1,658	—	1,347	—
Options to purchase shares of common stock	857	331	760	235
Non-vested shares of restricted stock	81	75	82	67
Total potential common shares excluded	2,596	406	2,189	302