Net Income per Share

12 Months Ended

Dec. 31, 2023

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 2023, 2022 and 2021 are as follows:

	2023		2022		2021
	(In thousands, except per share amounts)
Net income	$	1,041,144	$	848,952	$	695,955
Weighted average common shares used to calculate basic net income per share	269,381		271,198		273,504
Stock-based awards	3,367		3,813		5,354
Weighted average common shares used to calculate diluted net income per share	272,748		275,011		278,858
Net income per share – basic	$	3.86	$	3.13	$	2.54
Net income per share – diluted	$	3.82	$	3.09	$	2.50

The following table presents shares of Cadence’s common stock outstanding for fiscal 2023, 2022 and 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: 

	2023	2022	2021
	(In thousands)
Long-term market-based awards	1,381	1,565	—
Options to purchase shares of common stock	345	716	214
Non-vested shares of restricted stock	232	88	41
Total potential common shares excluded	1,958	2,369	255