Net Income per Share

3 Months Ended

Mar. 31, 2012

Net Income per Share [Abstract]

NET INCOME PER SHARE

NOTE 9. 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. 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.

The calculations for basic and diluted net income per share for the three months ended March 31, 2012, and April 2, 2011, are as follows:

	Three Months Ended
	March 31, 2012		April 2, 2011
	(In thousands, except per share amounts)
Net income	$	31,104	$	6,323
Weighted average common shares used to calculate basic net income per share		267,940		261,533
2023 Notes		11		11
2015 Warrants		2,523		—
Stock-based compensation		7,259		7,034
Weighted average common shares used to calculate diluted net income per share		277,733		268,578
Basic net income per share	$	0.12	$	0.02
Diluted net income per share	$	0.11	$	0.02

The following table presents shares of Cadence’s common stock outstanding for the three months ended March 31, 2012 and April 2, 2011 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, 2012		April 2, 2011
	(In thousands)
2015 Warrants (various expiration dates through 2015)		—		46,382
2011 Warrants and 2013 Warrants (various expiration dates through 2014)		7,815		13,922
Options to purchase shares of common stock (various expiration dates through 2021)		14,070		18,524
Unvested shares of restricted stock		33		369
Total potential common shares excluded		21,918		79,197