Net Income (Loss) per Share

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



	Three Months Ended					Six Months Ended
	January 26, 2019		January 27, 2018			January 26, 2019		January 27, 2018
Net income (loss)	$	2,822	$	(8,778	)	$	6,371	$	(6,384	)
Weighted-average shares—basic	4,470		4,924			4,517		4,942
Effect of dilutive potential common shares	35		—			40		—
Weighted-average shares—diluted	4,505		4,924			4,557		4,942
Net income (loss) per share—basic	$	0.63	$	(1.78	)	$	1.41	$	(1.29	)
Net income (loss) per share—diluted	$	0.63	$	(1.78	)	$	1.40	$	(1.29	)

Employee equity share options, unvested shares, and similar equity instruments granted and assumed by Cisco 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 are collectively assumed to be used to repurchase shares.

We excluded antidilutive employee-share based awards of 27 million and 28 million for the second quarter and first six months of fiscal 2019, respectively. For the second quarter and first six months of fiscal 2018, we excluded the impact of potentially dilutive common shares from the calculation of net income (loss) per share as the inclusion would have an antidilutive effect.