Net Income per Share

12 Months Ended

Dec. 31, 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 2022, 2021 and 2020 are as follows:

	2022		2021		2020
	(In thousands, except per share amounts)
Net income	$	848,952	$	695,955	$	590,644
Weighted average common shares used to calculate basic net income per share	271,198		273,504		273,728
Stock-based awards	3,813		5,354		5,913
Weighted average common shares used to calculate diluted net income per share	275,011		278,858		279,641
Net income per share – basic	$	3.13	$	2.54	$	2.16
Net income per share – diluted	$	3.09	$	2.50	$	2.11

The following table presents shares of Cadence’s common stock outstanding for fiscal 2022, 2021 and 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: 

	2022	2021	2020
	(In thousands)
Long-term market-based awards	1,565	—	383
Options to purchase shares of common stock	716	214	201
Non-vested shares of restricted stock	88	41	58
Total potential common shares excluded	2,369	255	642