Net Income per Share

6 Months Ended

Jan. 25, 2020

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



	Three Months Ended				Six Months Ended
	January 25, 2020		January 26, 2019		January 25, 2020		January 26, 2019
Net income	$	2,878	$	2,822	$	5,804	$	6,371
Weighted-average shares—basic	4,242		4,470		4,244		4,517
Effect of dilutive potential common shares	18		35		21		40
Weighted-average shares—diluted	4,260		4,505		4,265		4,557
Net income per share—basic	$	0.68	$	0.63	$	1.37	$	1.41
Net income per share—diluted	$	0.68	$	0.63	$	1.36	$	1.40
Antidilutive employee share-based awards, excluded	29		27		32		28

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.