Net Income per Share

3 Months Ended

Oct. 26, 2019

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



	Three Months Ended
	October 26, 2019		October 27, 2018
Net income	$	2,926	$	3,549
Weighted-average shares—basic	4,246		4,565
Effect of dilutive potential common shares	27		49
Weighted-average shares—diluted	4,273		4,614
Net income per share—basic	$	0.69	$	0.78
Net income per share—diluted	$	0.68	$	0.77
Antidilutive employee share-based awards, excluded	11		9

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 been recognized are collectively assumed to be used to repurchase shares.