Net Income per Share

9 Months Ended

Sep. 29, 2012

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 the three and nine months ended September 29, 2012, and October 1, 2011, are as follows:

	Three Months Ended				Nine Months Ended
	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
	(In thousands, except per share amounts)
Net income	$	58,584	$	28,106	$	126,074	$	61,337
Weighted average common shares used to calculate basic net income per share	271,350		264,723		269,643		263,149
2023 Notes	11		11		11		11
2015 Warrants	6,286		—		3,148		—
Stock-based compensation	5,681		6,007		5,958		6,908
Weighted average common shares used to calculate diluted net income per share	283,328		270,741		278,760		270,068
Net income per share - basic	$	0.22	$	0.11	$	0.47	$	0.23
Net income per share - diluted	$	0.21	$	0.10	$	0.45	$	0.23

The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 29, 2012, and October 1, 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		Nine Months Ended
	September 29, 2012	October 1, 2011	September 29, 2012	October 1, 2011
	(In thousands)
2015 Warrants (various expiration dates through 2015)	—	46,382	—	46,382
2011 Warrants and 2013 Warrants (various expiration dates through 2014)	6,830	17,916	6,830	18,194
Options to purchase shares of common stock (various expiration dates through 2022)	10,003	14,184	12,767	14,184
Non-vested shares of restricted stock	10	2,805	82	21
Total potential common shares excluded	16,843	81,287	19,679	78,781