Net Income per Share

3 Months Ended

Oct. 28, 2017

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



	Three Months Ended
	October 28, 2017		October 29, 2016
Net income	$	2,394	$	2,322
Weighted-average shares—basic	4,959		5,027
Effect of dilutive potential common shares	35		39
Weighted-average shares—diluted	4,994		5,066
Net income per share—basic	$	0.48	$	0.46
Net income per share—diluted	$	0.48	$	0.46
Antidilutive employee share-based awards, excluded	15		67

Employee equity share options, unvested shares, and similar equity instruments 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 and the amount of compensation cost for future service that has not yet recognized would be recorded in additional paid-in capital when the award becomes deductible are collectively assumed to be used to repurchase shares.