Calculation Of Net Income Per Share

3 Months Ended

Mar. 31, 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 March 31,
	2014	2013
	(In thousands)
Weighted-average shares of common stock outstanding	133,417	152,543
Weighted-average potential shares of common stock outstanding:
Conversion spread related to the Subordinated Convertible Debentures	14,286	7,904
Unvested RSUs	817	787
Stock options	37	104
Employee stock purchase plan	43	8
Shares used to compute diluted net income per share	148,600	161,346

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:

	Three Months Ended March 31,
	2014	2013
	(In thousands)
Weighted-average RSUs outstanding	19	301
Employee stock purchase plan	90	86

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 0.3 million such shares excluded from the calculation for each of the periods presented.