Net Income per Share

12 Months Ended

Jul. 26, 2014

Earnings Per Share [Abstract]

Net Income per Share

18. Net Income per Share

The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts):

Years Ended	July 26, 2014		July 27, 2013		July 28, 2012
Net income	$	7,853	$	9,983	$	8,041
Weighted-average shares—basic	5,234		5,329		5,370
Effect of dilutive potential common shares	47		51		34
Weighted-average shares—diluted	5,281		5,380		5,404
Net income per share—basic	$	1.50	$	1.87	$	1.50
Net income per share—diluted	$	1.49	$	1.86	$	1.49
Antidilutive employee share-based awards, excluded	254		407		591

Employee equity share options, unvested shares, and similar equity instruments granted by the Company are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are collectively assumed to be used to repurchase shares.