Net Income per Share

9 Months Ended

Apr. 30, 2016


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):



	Three Months Ended				Nine Months Ended
	April 30, 2016		April 25, 2015		April 30, 2016		April 25, 2015
Net income	$	2,349	$	2,437	$	7,926	$	6,662
Weighted-average shares—basic	5,032		5,102		5,060		5,110
Effect of dilutive potential common shares	33		46		35		44
Weighted-average shares—diluted	5,065		5,148		5,095		5,154
Net income per share—basic	$	0.47	$	0.48	$	1.57	$	1.30
Net income per share—diluted	$	0.46	$	0.47	$	1.56	$	1.29
Antidilutive employee share-based awards, excluded	75		75		149		156

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.