Net Income Per Share

3 Months Ended

Apr. 02, 2022

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 April 2, 2022 and April 3, 2021 are as follows:


	Three Months Ended
		April 2, 2022		April 3, 2021
		(In thousands, except per share amounts)
Net income		$	235,335	$	187,169
Weighted average common shares used to calculate basic net income per share		272,431		274,021
Stock-based awards		4,487		6,119
Weighted average common shares used to calculate diluted net income per share		276,918		280,140
Net income per share - basic		$	0.86	$	0.68
Net income per share - diluted		$	0.85	$	0.67

The following table presents shares of Cadence’s common stock outstanding for the three months ended April 2, 2022 and April 3, 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:


	Three Months Ended
		April 2, 2022	April 3, 2021
		(In thousands)
Long-term market-based awards		1,035	—
Options to purchase shares of common stock		663	138
Non-vested shares of restricted stock		82	58
Total potential common shares excluded		1,780	196