cisco-annual-report-2021

20. Net Income per Share
The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts):
Years Ended July 31, 2021 July 25, 2020 July 27, 2019
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,591 $ 11,214 $ 11,621
Weighted-average shares—basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,222 4,236 4,419
Effect of dilutive potential common shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 18 34
Weighted-average shares—diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,236 4,254 4,453
Net income per share—basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.51 $ 2.65 $ 2.63
Net income per share—diluted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.50 $ 2.64 $ 2.61
Antidilutive employee share-based awards, excluded . . . . . . . . . . . . . . . . . . . . . . . . . . 69 76 55
Employee equity share options, unvested shares, and similar equity instruments granted and assumed by us 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.
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