Calculation Of Net Income Per Share

3 Months Ended

Mar. 31, 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
	March 31,
	2012	2011
	(In thousands)
Weighted-average number of common shares outstanding	159,344	170,193
Weighted-average potential shares of common stock outstanding:
Stock options	201	445
Unvested RSUs	767	814
Conversion spread related to Convertible Debentures	2,541	506
Employee stock purchase plan	28	21
Shares used to compute diluted net income per share	162,881	171,979

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
	March 31,
	2012		2011
	(In thousands, except per share data)
Weighted-average stock options outstanding	60		301
Weighted-average exercise price	$	40.81	$	38.24
Weighted-average RSUs outstanding	2		32
Employee stock purchase plan	120		510