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Employee Benefits And Stock-Based Compensation
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Employee Benefits And Stock-Based Compensation Employee Benefits and Stock-based Compensation
401(k) Plan
The Company maintains a defined contribution 401(k) plan (the “401(k) Plan”) for substantially all of its U.S. employees. Under the 401(k) Plan, eligible employees may contribute up to 50% of their pre-tax salary, subject to the Internal Revenue Service (“IRS”) annual contribution limits. The Company matches 50% of up to the first 8% of the employee’s annual salary contributed to the plan. The Company contributed $4.7 million in 2019, $4.3 million in 2018, and $4.0 million in 2017 under the 401(k) Plan. The Company can terminate matching contributions at its discretion at any time.
Equity Incentive Plan  
The majority of Verisign’s stock-based compensation relates to RSUs granted under the 2006 Equity Incentive Plan (“the 2006 Plan”).  As of December 31, 2019, a total of 9.0 million shares of common stock remain reserved for issuance upon the vesting of RSUs and for the future grant of equity awards. The 2006 Plan authorizes the award of incentive stock options to employees and non-qualified stock options, restricted stock awards, RSUs, stock bonus awards, stock appreciation rights and performance shares to eligible employees, officers, directors, consultants, independent contractors and advisers. The 2006 Plan is administered by the Compensation Committee which may delegate to a committee of one or more members of the Board or Verisign’s officers the ability to grant certain awards and take certain other actions with respect to participants who are not executive officers or non-employee directors. RSUs are awards covering a specified number of shares of Verisign common stock that may be settled by issuance of those shares (which may be restricted shares). RSUs generally vest over four years. Certain RSUs with performance and market conditions (“PSUs”), granted to the Company’s executives, vest over either three-or four-year terms. Additionally, the Company has granted fully vested RSUs to members of its Board in each of the last three years. The Compensation Committee may authorize grants with a different vesting schedule in the future.
2007 Employee Stock Purchase Plan
Eligible employees of the Company may purchase common stock under the 2007 Employee Stock Purchase Plan through payroll deductions by electing to have between 2% and 25% of their compensation withheld to cover the purchase price. Each participant is granted an option to purchase common stock on the first day of each 24-month offering period and this option is automatically exercised on the last day of each six-month purchase period during the offering period. The purchase price for the common stock under the ESPP is 85% of the lesser of the fair market value of the common stock on the first day of the applicable offering period or the last day of the applicable purchase period. Offering periods begin on the first business day of February and August of each year. As of December 31, 2019, 3.1 million shares of the Company’s common stock remain reserved for future issuance under this plan.
Stock-based Compensation
Stock-based compensation is classified in the Consolidated Statements of Comprehensive Income in the same expense line items as cash compensation. The following table presents the classification of stock-based compensation:
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(In thousands)
Cost of revenues
$
6,739

 
$
6,835

 
$
7,030

Sales and marketing
3,755

 
4,972

 
5,688

Research and development
6,370

 
6,728

 
6,113

General and administrative
33,762

 
33,969

 
34,076

Total stock-based compensation
$
50,626

 
$
52,504

 
$
52,907


The following table presents the nature of the Company’s total stock-based compensation:
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(In thousands)
RSUs
$
36,930

 
$
38,005

 
$
38,087

PSUs
10,522

 
12,403

 
13,270

ESPP
4,864

 
4,166

 
4,005

Capitalization (Included in Property and equipment, net)
(1,690
)
 
(2,070
)
 
(2,455
)
Total stock-based compensation expenses
$
50,626

 
$
52,504

 
$
52,907


The income tax benefit that was included within Income tax expense related to these stock-based compensation expenses for 2019, 2018, and 2017 was $11.7 million, $12.3 million, and $12.5 million, respectively.
RSUs Information
The following table summarizes unvested RSUs activity for the year ended December 31, 2019:
 
Shares
 
Weighted-Average Grant-Date Fair Value
 
(Shares in thousands)
Unvested at beginning of period
1,222

 
$
90.88

Granted
307

 
$
172.87

PSU achievement adjustment
85

 
$
42.22

Vested and settled
(682
)
 
$
81.05

Forfeited
(56
)
 
$
110.45

 
876

 
$
121.21


The RSUs in the table above include PSUs. The unvested RSUs as of December 31, 2019 include approximately 0.3 million PSUs. The number of shares received upon vesting of these PSUs may range from zero to 0.6 million depending on the level of performance achieved and whether any market conditions are satisfied.
The closing price of Verisign’s stock was $192.68 on December 31, 2019. As of December 31, 2019, the aggregate market value of unvested RSUs was $168.9 million. The fair values of RSUs that vested during 2019, 2018, and 2017 were $124.1 million, $107.2 million, and $70.9 million, respectively. The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2018 and 2017, was $112.74 and $83.91, respectively.  As of December 31, 2019, total unrecognized compensation cost related to unvested RSUs was $71.2 million which is expected to be recognized over a weighted-average period of 2.5 years.