Calculation Of Net Income Per Share

9 Months Ended

Sep. 30, 2014

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 weighted-average number of shares used in the calculation of basic and diluted net income per share:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013
	(In thousands)
Weighted-average shares of common stock outstanding	124,109	141,701	128,924	147,567
Weighted-average potential shares of common stock outstanding:
Conversion spread related to the Subordinated Convertible Debentures	13,228	10,480	12,935	9,258
Unvested RSUs	730	669	670	664
Stock options	25	94	30	98
Employee stock purchase plan	20	7	25	19
Shares used to compute diluted net income per share	138,112	152,951	142,584	157,606

The calculation of diluted weighted average shares outstanding, excludes potentially dilutive securities, the effect of which would have been anti-dilutive, as well as performance based RSUs granted by the Company for which the relevant performance criteria have not been achieved. The number of potential shares excluded from the calculation was not significant in any period presented.