Calculation Of Net Income Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Calculation Of Net Income Per Share Attributable To Verisign Stockholders

Calculation of Net Income per Share

The Company computes basic net income per share by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share gives effect to dilutive potential common shares, including outstanding stock options, unvested RSUs, conversion spread relating to the Convertible Debentures, and employee stock purchases using the treasury stock method. The following table presents the computation of weighted-average shares used in the calculation of basic and diluted net income per share:

	Three Months Ended June 30,		Six Months Ended June 30,
	2012	2011	2012	2011
	(In thousands)
Weighted-average number of common shares outstanding	157,599	167,471	158,471	169,751
Weighted-average potential shares of common stock outstanding:
Stock options	189	—	195	436
Unvested RSUs	659	—	713	802
Conversion spread related to Convertible Debentures	5,636	—	4,089	833
Employee stock purchase plan	95	—	62	28
Shares used to compute diluted net income per share	164,178	167,471	163,530	171,850

The following table presents the weighted-average potential shares of common stock that were excluded from the above calculation because their effect was anti-dilutive, and the respective weighted-average exercise prices of the weighted-average stock options outstanding:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(In thousands, except per share data)
Weighted-average stock options outstanding	58		2,443		59		270
Weighted-average exercise price	$	40.81	$	27.14	$	40.81	$	38.43
Weighted-average RSUs outstanding	4		2,856		3		17
Employee stock purchase plan	—		653		60		255