Net Income per Share

12 Months Ended

Jul. 25, 2020

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



Years Ended	July 25, 2020		July 27, 2019		July 28, 2018
Net income	$	11,214	$	11,621	$	110
Weighted-average shares—basic	4,236		4,419		4,837
Effect of dilutive potential common shares	18		34		44
Weighted-average shares—diluted	4,254		4,453		4,881
Net income per share—basic	$	2.65	$	2.63	$	0.02
Net income per share—diluted	$	2.64	$	2.61	$	0.02
Antidilutive employee share-based awards, excluded	76		55		61

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.