Net Income (Loss) per Share

12 Months Ended

Dec. 31, 2011

Net Income (loss) per Share [Abstract]

NET INCOME (LOSS) PER SHARE

NOTE 14. NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) during the period by the weighted-average number of shares of common stock outstanding, less unvested restricted stock awards. None of Cadence’s outstanding grants of restricted stock contain nonforfeitable dividend rights. 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. In periods in which a net loss is recorded, potentially dilutive equity instruments would decrease the loss per share and therefore are not added to the weighted-average shares outstanding for the diluted net loss per share calculation.

The calculations for basic and diluted net income (loss) per share for fiscal 2011, fiscal 2010 and fiscal 2009 are as follows:

	2011		2010		2009
	(In thousands, except per share amounts)
Net income (loss)	$	72,229	$	126,538	$	(149,871	)
Weighted-average common shares used to calculate basic net income (loss) per share		263,892		260,787		257,782
2023 Notes		11		11		----
Equity based compensation		6,913		5,073		----
Weighted-average common shares used to calculate diluted net income (loss) per share		270,816		265,871		257,782
Basic net income (loss) per share	$	0.27	$	0.49	$	(0.58	)
Diluted net income (loss) per share	$	0.27	$	0.48	$	(0.58	)

The following table presents shares of Cadence’s common stock outstanding for fiscal 2011, fiscal 2010 and fiscal 2009 that were excluded from the computation of diluted net income (loss) per share because the effect of including these shares in the computation of diluted net income (loss) per share would have been anti-dilutive:

	2011		2010		2009
	(In thousands)
2015 Warrants (various expiration dates through 2015)		46,382		46,382		----
Options to purchase shares of common stock (various expiration dates through 2021)		17,580		22,100		35,840
2011 and 2013 Notes Warrants (various expiration dates through 2014)		13,922		13,922		23,640
Unvested shares of restricted stock		800		1,808		8,667
Employee stock purchase plan		----		----		1,342
2023 Notes		----		----		11
Total potential common shares excluded		78,684		84,212		69,500