Net Income Per Share

3 Months Ended

Mar. 31, 2023

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 months ended March 31, 2023 and April 2, 2022 are as follows:


	Three Months Ended
		March 31, 2023		April 2, 2022
		(In thousands, except per share amounts)
Net income		$	241,804	$	235,335
Weighted average common shares used to calculate basic net income per share		269,501		272,431
Stock-based awards		3,658		4,487
Weighted average common shares used to calculate diluted net income per share		273,159		276,918
Net income per share - basic		$	0.90	$	0.86
Net income per share - diluted		$	0.89	$	0.85

The following table presents shares of Cadence’s common stock outstanding for the three months ended March 31, 2023 and April 2, 2022 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
		March 31, 2023	April 2, 2022
		(In thousands)
Long-term market-based awards		1,826	1,035
Options to purchase shares of common stock		332	663
Non-vested shares of restricted stock		50	82
Total potential common shares excluded		2,208	1,780