NET INCOME PER SHARE

3 Months Ended

Mar. 31, 2024

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, 2024 and March 31, 2023 are as follows:


	Three Months Ended
		March 31, 2024		March 31, 2023
		(In thousands, except per share amounts)
Net income		$	247,643	$	241,804
Weighted average common shares used to calculate basic net income per share		269,606		269,501
Stock-based awards		3,938		3,658
Weighted average common shares used to calculate diluted net income per share		273,544		273,159
Net income per share - basic		$	0.92	$	0.90
Net income per share - diluted		$	0.91	$	0.89

The following table presents shares of Cadence’s common stock outstanding for the three months ended March 31, 2024 and March 31, 2023 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, 2024	March 31, 2023
		(In thousands)
Long-term market-based awards		—	1,826
Options to purchase shares of common stock		59	332
Non-vested shares of restricted stock		8	50
Total potential common shares excluded		67	2,208