Cisco 2012 Annual Report Download - page 139

Download and view the complete annual report

Please find page 139 of the 2012 Cisco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

17. 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 28, 2012 July 30, 2011 July 31, 2010
Net income ..................................... $8,041 $6,490 $7,767
Weighted-average shares—basic .................... 5,370 5,529 5,732
Effect of dilutive potential common shares ............ 34 34 116
Weighted-average shares—diluted ................... 5,404 5,563 5,848
Net income per share—basic ....................... $ 1.50 $ 1.17 $ 1.36
Net income per share—diluted ...................... $ 1.49 $ 1.17 $ 1.33
Antidilutive employee share-based awards, excluded .... 591 379 344
Employee equity share options, unvested shares, and similar equity instruments granted by the Company 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, the amount of compensation cost for future service that the Company has not yet
recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award
becomes deductible are collectively assumed to be used to repurchase shares.
131