Calculation Of Net Income Per Share

6 Months Ended

Jun. 30, 2013

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 the conversion spread relating to the Subordinated Convertible Debentures, unvested RSUs, outstanding stock options, 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,
	2013	2012	2013	2012
	(In thousands)
Weighted-average shares of common stock outstanding	148,576	157,599	150,549	158,471
Weighted-average potential shares of common stock outstanding:
Conversion spread related to the Subordinated Convertible Debentures	9,391	5,636	8,647	4,089
Unvested RSUs	536	659	661	713
Stock options	98	189	101	195
Employee stock purchase plan	40	95	24	62
Shares used to compute diluted net income per share	158,641	164,178	159,982	163,530

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,
	2013		2012		2013		2012
	(In thousands, except per share data)
Weighted-average stock options outstanding	—		58		—		59
Weighted-average exercise price	$	—	$	40.81	$	—	$	40.81
Weighted-average RSUs outstanding	1		4		151		3
Employee stock purchase plan	54		—		70		60

Performance based RSUs granted by the Company are excluded from the above calculation of diluted weighted average shares outstanding until the relevant performance criteria are achieved. There were less than 0.2 million such shares excluded from the calculation for each of the periods presented.