Net Income per Share

9 Months Ended

Apr. 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				Nine Months Ended
	April 25, 2020		April 27, 2019		April 25, 2020		April 27, 2019
Net income	$	2,774	$	3,044	$	8,578	$	9,415
Weighted-average shares—basic	4,230		4,370		4,239		4,468
Effect of dilutive potential common shares	13		45		19		41
Weighted-average shares—diluted	4,243		4,415		4,258		4,509
Net income per share—basic	$	0.66	$	0.70	$	2.02	$	2.11
Net income per share—diluted	$	0.65	$	0.69	$	2.01	$	2.09
Antidilutive employee share-based awards, excluded	14		5		42		32

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.