10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________ 

FORM 10-Q

 ____________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                 

Commission File Number: 000-23593 

VERISIGN, INC.

(Exact name of registrant as specified in its charter)

Delaware		94-3221585
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
12061 Bluemont Way,
Reston,	Virginia	20190
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (703) 948-3200

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	VRSN	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒     No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes ☒     No   ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes ☐     No  ☒ 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class	Shares Outstanding as of October 22, 2021
Common stock, $0.001 par value per share	111,078,436

TABLE OF CONTENTS

		Page
	PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020	3
	Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2021 and 2020	4
	Condensed Consolidated Statements of Stockholders’ Deficit for the Three and Nine Months Ended September 30, 2021 and 2020	5
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4.	Controls and Procedures	20
	PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 6.	Exhibits	22
Signatures		23

2

PART I—FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

VERISIGN, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

	September 30, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	256,869	$	401,194
Marketable securities	941,552		765,713
Other current assets	65,989		51,033
Total current assets	1,264,410		1,217,940
Property and equipment, net	249,093		245,571
Goodwill	52,527		52,527
Deferred tax assets	65,163		67,914
Deposits to acquire intangible assets	145,000		145,000
Other long-term assets	38,514		37,958
Total long-term assets	550,297		548,970
Total assets	$	1,814,707	$	1,766,910
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities	$	204,511	$	208,642
Deferred revenues	843,664		780,051
Total current liabilities	1,048,175		988,693
Long-term deferred revenues	314,089		282,838
Senior notes	1,785,152		1,790,083
Long-term tax and other liabilities	84,869		95,494
Total long-term liabilities	2,184,110		2,168,415
Total liabilities	3,232,285		3,157,108
Commitments and contingencies
Stockholders’ deficit:
Preferred stock—par value $.001 per share; Authorized shares: 5,000; Issued and outstanding shares: none	—		—
Common stock and additional paid-in capital—par value $.001 per share; Authorized shares: 1,000,000; Issued shares: 354,154 at September 30, 2021 and 353,789 at December 31, 2020; Outstanding shares: 111,283 at September 30, 2021 and 113,470 at December 31, 2020	13,793,049		14,275,160
Accumulated deficit	(15,207,854)		(15,662,602)
Accumulated other comprehensive loss	(2,773)		(2,756)
Total stockholders’ deficit	(1,417,578)		(1,390,198)
Total liabilities and stockholders’ deficit	$	1,814,707	$	1,766,910

See accompanying Notes to Condensed Consolidated Financial Statements.

3

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share data)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
Revenues	$	334,242	$	317,879	$	987,268	$	944,768
Costs and expenses:
Cost of revenues	47,801		45,024		142,565		134,205
Sales and marketing	9,410		8,389		28,115		23,883
Research and development	19,566		19,708		59,685		55,268
General and administrative	36,160		38,109		112,212		111,719
Total costs and expenses	112,937		111,230		342,577		325,075
Operating income	221,305		206,649		644,691		619,693
Interest expense	(18,829)		(22,537)		(64,427)		(67,607)
Non-operating income (loss), net	164		775		(1,433)		15,262
Income before income taxes	202,640		184,887		578,831		567,348
Income tax (expense) benefit	(46,018)		(13,908)		(124,083)		90,226
Net income	156,622		170,979		454,748		657,574
Other comprehensive income (loss)	61		(383)		(17)		(120)
Comprehensive income	$	156,683	$	170,596	$	454,731	$	657,454
Earnings per share:
Basic	$	1.40	$	1.49	$	4.05	$	5.70
Diluted	$	1.40	$	1.49	$	4.04	$	5.68
Shares used to compute earnings per share
Basic	111,664		114,655		112,389		115,456
Diluted	111,793		114,831		112,530		115,699

See accompanying Notes to Condensed Consolidated Financial Statements.

4

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(In thousands)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
Total stockholders’ deficit, beginning of period	$	(1,417,785)	$	(1,400,324)	$	(1,390,198)	$	(1,490,100)
Common stock and additional paid-in capital
Beginning balance	13,949,525		14,592,929		14,275,160		14,990,011
Repurchase of common stock	(175,598)		(173,879)		(536,797)		(603,705)
Stock-based compensation expense	14,819		13,078		42,282		37,526
Issuance of common stock under stock plans	4,303		4,281		12,404		12,577
Balance, end of period	13,793,049		14,436,409		13,793,049		14,436,409
Accumulated deficit
Beginning balance	(15,364,476)		(15,990,895)		(15,662,602)		(16,477,490)
Net income	156,622		170,979		454,748		657,574
Balance, end of period	(15,207,854)		(15,819,916)		(15,207,854)		(15,819,916)
Accumulated other comprehensive loss
Beginning balance	(2,834)		(2,358)		(2,756)		(2,621)
Other comprehensive income (loss)	61		(383)		(17)		(120)
Balance, end of period	(2,773)		(2,741)		(2,773)		(2,741)
Total stockholders’ deficit, end of period	$	(1,417,578)	$	(1,386,248)	$	(1,417,578)	$	(1,386,248)

See accompanying Notes to Condensed Consolidated Financial Statements.

5

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended  September 30,
	2021		2020
Cash flows from operating activities:
Net income	$	454,748	$	657,574
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	35,609		34,463
Stock-based compensation	41,019		36,106
Other, net	5,410		(8,482)
Changes in operating assets and liabilities:
Other assets	(19,735)		(11,107)
Accounts payable and accrued liabilities	(5,529)		(5,912)
Deferred revenues	94,863		27,673
Net deferred income taxes and other long-term tax liabilities	(5,476)		(195,353)
Net cash provided by operating activities	600,909		534,962
Cash flows from investing activities:
Proceeds from maturities and sales of marketable securities	2,246,148		1,804,541
Purchases of marketable securities	(2,421,705)		(2,093,437)
Purchases of property and equipment	(39,536)		(36,933)
Proceeds received related to sale of business	—		20,009
Net cash used in investing activities	(215,093)		(305,820)
Cash flows from financing activities:
Repayment of borrowings	(750,000)		—
Proceeds from senior note issuance, net of issuance costs	741,075		—
Repurchases of common stock	(536,797)		(603,705)
Proceeds from employee stock purchase plan	12,404		12,577
Net cash used in financing activities	(533,318)		(591,128)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(600)		(506)
Net decrease in cash, cash equivalents, and restricted cash	(148,102)		(362,492)
Cash, cash equivalents, and restricted cash at beginning of period	410,601		517,601
Cash, cash equivalents, and restricted cash at end of period	$	262,499	$	155,109
Supplemental cash flow disclosures:
Cash paid for interest	$	61,845	$	56,860
Cash paid for income taxes, net of refunds received	$	132,202	$	105,258

See accompanying Notes to Condensed Consolidated Financial Statements.

6

VERISIGN, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Basis of Presentation

Interim Financial Statements

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by VeriSign, Inc. (“Verisign” or the “Company”) in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes contained in Verisign’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) filed with the SEC on February 19, 2021.

Note 2. Financial Instruments

Cash, Cash Equivalents, and Marketable Securities

The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis:

	September 30,		December 31,
	2021		2020
	(In thousands)
Cash	$	24,317	$	28,832
Time deposits	3,708		4,176
Money market funds (Level 1)	208,377		129,627
Debt securities issued by the U.S. Treasury (Level 1)	967,649		1,013,679
Total	$	1,204,051	$	1,176,314
Cash and cash equivalents	$	256,869	$	401,194
Restricted cash (included in Other long-term assets)	5,630		9,407
Total Cash, cash equivalents, and restricted cash	262,499		410,601
Marketable securities	941,552		765,713
Total	$	1,204,051	$	1,176,314

The fair value of the debt securities held as of September 30, 2021, included less than $0.1 million of gross and net unrealized gains. All of the debt securities held as of September 30, 2021 are scheduled to mature in less than one year.

Fair Value Measurements

The fair value of the Company’s investments in money market funds approximates their face value. Such instruments are included in Cash and cash equivalents. The fair value of the debt securities consisting of U.S. Treasury bills is based on their quoted market prices. Debt securities purchased with original maturities in excess of three months are included in Marketable securities. The fair value of all of these financial instruments are classified as Level 1 in the fair value hierarchy.

The Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable. As of September 30, 2021, the carrying value of these financial instruments approximated their fair value. The fair values of the senior notes due 2025, 2027, and 2031 were $563.6 million, $580.0 million, and $763.5 million, respectively, as of September 30, 2021. The fair values of these debt instruments are based on available market information from public data sources and are classified as Level 2.

7

Note 3. Selected Balance Sheet Items

Other Current Assets

Other current assets consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Prepaid expenses	$	31,189	$	17,920
Prepaid registry fees	24,513		22,654
Accounts receivable, net	5,062		4,642
Taxes receivable	4,091		3,572
Other	1,134		2,245
Total other current assets	$	65,989	$	51,033

Other Long-Term Assets

Other long-term assets consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Long-term prepaid expenses	$	12,250	$	7,105
Operating lease right-of-use asset	9,625		11,277
Long-term prepaid registry fees	8,990		7,997
Restricted cash	5,630		9,407
Other	2,019		2,172
Total other long-term assets	$	38,514	$	37,958

The prepaid expenses included in Other current assets and Other long-term assets as of September 30, 2021 are primarily related to prepaid hardware and software maintenance expenses. The current and long-term prepaid registry fees in the tables above relate to the fees the Company pays to Internet Corporation for Assigned Names and Numbers (“ICANN”) for each annual increment of .com domain name registrations and renewals which are deferred and amortized over the domain name registration term. The amount of prepaid registry fees as of September 30, 2021 reflects amortization of $9.7 million and $28.5 million during the three and nine months ended September 30, 2021 which was recorded in Cost of Revenues.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Accounts payable and accrued expenses	$	6,233	$	12,340
Customer deposits	64,650		53,631
Accrued employee compensation	48,890		54,596
Interest payable	24,988		24,408
Taxes payable and other non-income tax liabilities	24,593		27,194
Accrued registry fees	14,717		13,090
Customer incentives payable	10,210		12,556
Other accrued liabilities	10,230		10,827
Total accounts payable and accrued liabilities	$	204,511	$	208,642

8

Customer deposits primarily relate to advance payments to cover domain name registration activity by registrars. Accrued employee compensation primarily consists of liabilities for employee leave, salaries, payroll taxes, employee contributions to the employee stock purchase plan, and incentive compensation. Accrued employee incentive compensation as of December 31, 2020, was paid during the nine months ended September 30, 2021. Interest payable varies at each period-end based on the payment due dates for each senior note issuance. Taxes payable and other non-income tax liabilities reflect amounts accrued for the income tax provision and payments made during the period. Customer incentives payable includes amounts related to rebates and marketing programs payable to registrars. These amounts may vary from period to period due to the timing of payments.

Long-term Tax and Other Liabilities

Long-term tax and other liabilities consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Long-term tax liabilities	$	82,108	$	90,335
Long-term operating lease liability	2,761		5,159
Long-term tax and other liabilities	$	84,869	$	95,494

Long-term tax liabilities as of September 30, 2021 reflects a $7.7 million reclassification of a portion of the transition tax liability on accumulated foreign earnings from non-current to current as of September 30, 2021.

Note 4. Stockholders’ Deficit

Effective February 11, 2021, the Company’s Board of Directors authorized the repurchase of its common stock in the amount of $747.0 million, in addition to the $253.0 million that remained available for repurchases under the share repurchase program, for a total repurchase authorization of up to $1.00 billion under the program. The program has no expiration date. Purchases made under the program could be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. During the three and nine months ended September 30, 2021, the Company repurchased 0.8 million and 2.5 million shares of its common stock, respectively, at an average stock price of $219.62 and $210.55, respectively. The aggregate cost of the repurchases in the three and nine months ended September 30, 2021 was $172.4 million and $517.6 million, respectively. As of September 30, 2021, there was approximately $565.1 million remaining available for future share repurchases under the share repurchase program.

During the nine months ended September 30, 2021, the Company placed 0.1 million shares, at an average stock price of $205.10, and for an aggregate cost of $19.3 million, into treasury stock for purposes related to tax withholding upon vesting of Restricted Stock Units (“RSUs”).

Since inception, the Company has repurchased 242.9 million shares of its common stock for an aggregate cost of $11.52 billion, which is presented as a reduction of Additional paid-in capital.

Note 5. Calculation of Earnings per Share

The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share:

	Three Months Ended September 30,		Nine Months Ended  September 30,
	2021	2020	2021	2020
	(In thousands)
Weighted-average shares of common stock outstanding	111,664	114,655	112,389	115,456
Weighted-average potential shares of common stock outstanding:
Unvested RSUs and ESPP	129	176	141	243
Shares used to compute diluted earnings per share	111,793	114,831	112,530	115,699

The calculation of diluted weighted average shares outstanding excludes 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.

9

Note 6. Revenues

The Company generates revenues in the U.S.; Europe, the Middle East and Africa (“EMEA”); China; and certain other countries, including Canada, Australia, and Japan.

The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
U.S.	$	214,352	$	202,934	$	632,424	$	599,845
EMEA	58,615		54,034		172,717		159,103
China	24,607		27,463		74,974		86,676
Other	36,668		33,448		107,153		99,144
Total revenues	$	334,242	$	317,879	$	987,268	$	944,768

Revenues in the table above are attributed to the country of domicile and the respective regions in which registrars are located; however, this may differ from the regions where the registrars operate or where registrants are located. Revenues for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenues for each region may also be impacted by registrars domiciled in one region, registering domain names in another region.

Deferred Revenues

As payment for domain name registrations and renewals are due in advance of our performance, we record these amounts as deferred revenues. The increase in the deferred revenues balance for the nine months ended September 30, 2021 was primarily driven by amounts billed in the nine months ended September 30, 2021 for domain name registrations and renewals to be recognized as revenues in future periods, offset by refunds for domain name renewals deleted during the 45-day grace period, and $665.1 million of revenues recognized that were included in the deferred revenues balance at the beginning of the period. The higher deferred revenue balance as of September 30, 2021 also reflects an increase in the volume of early renewal transactions that occurred before the .com price increase became effective on September 1, 2021. The balance of deferred revenues as of September 30, 2021 represents our aggregate remaining performance obligations. Amounts included in current deferred revenues are all expected to be recognized in revenues within 12 months, except for a portion of deferred revenues that relates to domain name renewals that are deleted in the 45-day grace period following the transaction. The long-term deferred revenues amounts will be recognized in revenues over several years and in some cases up to 10 years.

Note 7. Stock-based Compensation

Stock-based compensation is classified in the Condensed Consolidated Statements of Comprehensive Income in the same expense line items as cash compensation. The following table presents the classification of stock-based compensation:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
Cost of revenues	$	1,636	$	1,558	$	4,925	$	4,761
Sales and marketing	1,202		830		3,241		2,558
Research and development	2,151		1,810		6,078		5,266
General and administrative	9,439		8,480		26,775		23,521
Total stock-based compensation expense	$	14,428	$	12,678	$	41,019	$	36,106

10

The following table presents the nature of the Company’s total stock-based compensation:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
RSUs	$	11,899	$	10,871	$	31,777	$	29,060
Performance-based RSUs	1,857		1,102		7,283		5,146
ESPP	1,063		1,105		3,222		3,320
Capitalization (included in Property and equipment, net)	(391)		(400)		(1,263)		(1,420)
Total stock-based compensation expense	$	14,428	$	12,678	$	41,019	$	36,106

Note 8. Debt

On June 8, 2021, the Company issued $750.0 million of 2.700% senior unsecured notes due June 15, 2031 (“2031 Notes”). The 2031 Notes were issued at 99.712% of par value. The Company will pay interest on the notes semi-annually on June 15 and December 15, commencing on December 15, 2021. The total discount and issuance costs of $8.9 million are presented on the balance sheet as a reduction of the debt obligation and are being amortized to Interest expense over the 10-year term of the notes.

On June 23, 2021, the Company used the net proceeds from the 2031 Notes and cash on hand, to redeem all of its $750.0 million aggregate principal amount of outstanding 4.625% senior notes due 2023 (“2023 Notes”). The redemption of the 2023 Notes resulted in a loss on debt extinguishment of $2.1 million related to the unamortized debt issuance costs on the notes in the second quarter of 2021. The loss on extinguishment is included in Non-operating income (loss) during the nine months ended September 30, 2021.

Note 9. Non-operating Income (Loss), Net

The following table presents the components of Non-operating income (loss), net:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
Interest income	$	111	$	805	$	438	$	7,500
Loss on extinguishment of debt	—		—		(2,149)		—
Gain on sale of business	—		(9)		—		5,602
Transition services income	—		—		—		2,100
Other, net	53		(21)		278		60
Total non-operating income (loss), net	$	164	$	775	$	(1,433)	$	15,262

The lower interest income during the three and nine months ended September 30, 2021 reflects a decline in interest rates on our investments in debt securities. The gain on sale of business in 2020 represents the excess of the contingent consideration received related to the divested security services business compared to the estimated receivable. The transition services income in 2020 relates to the divested security services business. The transition services agreement ended in February 2020.

Note 10. Income Taxes

The following table presents Income tax expense (benefit) and the effective tax rate:

	Three Months Ended September 30,						Nine Months Ended  September 30,
	2021			2020			2021			2020
	(Dollars in thousands)
Income tax expense (benefit)	$	46,018		$	13,908		$	124,083		$	(90,226)
Effective tax rate	23		%	8		%	21		%	(16)		%

When compared to the statutory federal rate of 21%, the effective tax rates above reflect a lower effective tax rate on foreign income and excess tax benefits related to stock-based compensation, which are offset by state income taxes and U.S.

11

taxes on foreign earnings, net of foreign tax credits. The effective tax rate for the three and nine months ended September 30, 2020 also reflected the remeasurement of unrecognized tax benefits discussed below.

The Company remeasured certain previously unrecognized income tax benefits, which resulted in the recognition of $24.0 million and $191.8 million of income tax benefits in the three and nine months ended September 30, 2020, respectively. The most significant portion of these tax benefits related to the worthless stock deduction taken in 2013, which resulted in the recognition of a $167.8 million benefit in the first quarter of 2020. These remeasurements were based on written confirmations from the Internal Revenue Service (“IRS”), received in the first and third quarters of 2020, indicating no examination adjustments would be proposed related to the worthless stock deduction or certain other matters reviewed as part of the audit of the Company’s federal income tax returns for 2010 through 2014. Notwithstanding these written confirmations, the Company’s U.S. federal income tax returns for those years remain under examination by the IRS.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion in conjunction with the 2020 Form 10-K and the interim unaudited Condensed Consolidated Financial Statements and related notes included in Part I, Item I of this Quarterly Report on Form 10-Q.

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties, including, among other things, statements regarding our expectations about (i) the impact from the effects of the COVID-19 pandemic, (ii) the growth in revenues for the remainder of 2021, (iii) Cost of revenues, Sales and marketing expenses, Research and development expenses, General and administrative expenses, quarterly Interest expense, and quarterly Non-operating income (loss), net, for the remainder of 2021, (iv) our annual effective tax rate for 2021, and (v) the sufficiency of our existing cash, cash equivalents and marketable securities, and funds generated from operations, together with our borrowing capacity under the unsecured revolving credit facility. Forward-looking statements include, among others, those statements including the words “expects,” “anticipates,” “intends,” “believes” and similar language. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the section titled “Risk Factors” in Part I, Item 1A of the 2020 Form 10-K. You should also carefully review the risks described in other documents we file from time to time with the Securities and Exchange Commission, including the Quarterly Reports on Form 10-Q or Current Reports on Form 8-K that we file in 2021. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. We undertake no obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise, except as required by law.

For purposes of this Quarterly Report on Form 10-Q, the terms “Verisign,” “the Company,” “we,” “us,” and “our” refer to VeriSign, Inc. and its consolidated subsidiaries.

Overview

We are a global provider of domain name registry services and internet infrastructure, enabling internet navigation for many of the world’s most recognized domain names. We enable the security, stability, and resiliency of key internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains (“TLDs”), which support the majority of global e-commerce.

As of September 30, 2021, we had 172.1 million .com and .net registrations in the domain name base. The number of domain names registered is largely driven by continued growth in online advertising, e-commerce, and the number of internet users, which is partially driven by greater availability of internet access, as well as marketing activities carried out by us and our registrars. Growth in the number of domain name registrations under our management may be hindered by certain factors, including overall economic conditions, competition from country code top-level domains (“ccTLDs”), other generic top-level domains (“gTLDs”), services that offer alternatives for an online presence, such as social media, and ongoing changes in the internet practices and behaviors of consumers and businesses. Factors such as the evolving practices and preferences of internet users, and how they navigate the internet, as well as the motivation of domain name registrants and how they will manage their investment in domain names, can negatively impact our business and the demand for new domain name registrations and renewals.

Business Highlights and Trends

•We recorded revenues of $334.2 million and $987.3 million during the three and nine months ended September 30, 2021, an increase of 5% and 4%, respectively, compared to the same periods in 2020.

•We recorded operating income of $221.3 million and $644.7 million during the three and nine months ended September 30, 2021, an increase of 7% and 4%, respectively, compared to the same periods in 2020.

•As of September 30, 2021, we had 172.1 million .com and .net registrations in the domain name base, which represents a 5% increase from September 30, 2020, and a net increase of 1.5 million domain name registrations from June 30, 2021.

•During the three months ended September 30, 2021, we processed 10.7 million new domain name registrations for .com and .net compared to 10.9 million for the same period in 2020.

•The final .com and .net renewal rate for the second quarter of 2021 was 75.4% compared to 72.8% for the second quarter of 2020. Renewal rates are not fully measurable until 45 days after the end of the quarter.

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•During the three months ended September 30, 2021, we repurchased 0.8 million shares of our common stock for an aggregate cost of $172.4 million. As of September 30, 2021, there was approximately $565.1 million remaining available for future share repurchases under our share repurchase program.

•We generated cash flows from operating activities of $600.9 million during the nine months ended September 30, 2021, compared to $535.0 million for the same period in 2020.

Pursuant to our agreements with the Internet Corporation for Assigned Names and Numbers (“ICANN”), we make available files containing all active domain names registered in the .com and .net registries. Further, we also make available a summary of the active zone count registered in the .com and .net registries and the number of .com and .net domain name registrations in the domain name base. The zone counts and information on how to obtain access to the zone files can be found at https://www.Verisign.com/zone. The domain name base is the active zone plus the number of domain names that are registered but not configured for use in the respective top-level domain zone file plus the number of domain names that are in a client or server hold status. The domain name base may also reflect compensated or uncompensated judicial or administrative actions to add or remove from the active zone an immaterial number of domain names. These files and the related summary data are updated at least once per day. The update times may vary each day. The number of domain names provided in this Form 10-Q are as of midnight of the date reported.

COVID-19 Update

The United States and the global community we serve are facing unprecedented challenges posed by the COVID-19 pandemic. In response to the pandemic, we have established a task force to monitor the pandemic and have taken a number of actions to protect our employees, including restricting travel, modifying our sick leave policy to encourage quarantine and isolation when warranted, and directing most of our employees to work from home. We have implemented our readiness plans, which include the ability to maintain critical internet infrastructure with most employees working remotely. We believe that the effects of the pandemic to date have led to an increase in the demand for domain names, particularly as businesses and entrepreneurs have been seeking to establish or expand their presence online in response to the pandemic. Our revenues continued to grow during 2020 and the nine months ended September 30, 2021 primarily driven by an increase in the domain name base for the .com TLD; however, the situation remains uncertain and hard to predict. The broader implications of the pandemic on our business and operations and our financial results, including the extent to which the effects of the pandemic will impact future growth in the domain name base, remain uncertain. The duration and severity of the economic disruptions from the pandemic may ultimately result in negative impacts on our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources. For further discussion, see “Risk Factors – The effects of the COVID-19 pandemic have impacted how we operate our business, and the extent to which the effects of the pandemic will impact our business, operations, financial condition and results of operations remains uncertain” in Part 1, Item 1A of the 2020 Form 10-K.

Results of Operations

The following table presents information regarding our results of operations as a percentage of revenues:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
Revenues	100.0	%	100.0	%	100.0	%	100.0	%
Costs and expenses:
Cost of revenues	14.3		14.2		14.4		14.2
Sales and marketing	2.8		2.6		2.9		2.5
Research and development	5.9		6.2		6.0		5.9
General and administrative	10.8		12.0		11.4		11.8
Total costs and expenses	33.8		35.0		34.7		34.4
Operating income	66.2		65.0		65.3		65.6
Interest expense	(5.6)		(7.1)		(6.5)		(7.2)
Non-operating income (loss), net	—		0.3		(0.2)		1.6
Income before income taxes	60.6		58.2		58.6		60.0
Income tax (expense) benefit	(13.7)		(4.4)		(12.5)		9.6
Net income	46.9	%	53.8	%	46.1	%	69.6	%

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Revenues

Our revenues are primarily derived from registrations for domain names in the .com and .net domain name registries. We also derive revenues from operating domain name registries for several other TLDs and from providing back-end registry services to a number of TLD registry operators, all of which are not significant in relation to our consolidated revenues. For domain names registered in the .com and .net registries we receive a fee from registrars per annual registration that is determined pursuant to our agreements with ICANN. Individual customers, called registrants, contract directly with registrars or their resellers, and the registrars in turn register the domain names with Verisign. Changes in revenues are driven largely by changes in the number of new domain name registrations and the renewal rate for existing registrations as well as the impact of new and prior price increases, to the extent permitted by ICANN and the Department of Commerce (“DOC”). New registrations and the renewal rate for existing registrations are impacted by continued growth in online advertising, e-commerce, and the number of internet users, as well as marketing activities carried out by us and our registrars. We also offer promotional incentive-based discount programs to registrars based upon market conditions and the business environment in which the registrars operate.

On October 26, 2018, Verisign and the DOC amended the Cooperative Agreement. The amendment, among other items, extends the term of the Cooperative Agreement until November 30, 2024 and permits the price of a .com domain name to be increased, subject to appropriate changes to the .com Registry Agreement, without further DOC approval, by up to 7% in each of the final four years of each six-year period beginning on October 26, 2018. On March 27, 2020, Verisign and ICANN amended the .com Registry Agreement that, among other items, incorporates these changes agreed to with the DOC to the pricing terms. Effective September 1, 2021, we increased the annual registry-level wholesale fee for each new and renewal .com domain name registration from $7.85 to $8.39. We have the contractual right to increase the fees for .net domain name registrations by up to 10% each year during the term of our agreement with ICANN, through June 30, 2023. All fees paid to us for .com and .net registrations are in U.S. dollars.

A comparison of revenues is presented below:

	Three Months Ended September 30,					Nine Months Ended  September 30,
	2021		% Change	2020		2021		% Change	2020
	(Dollars in thousands)
Revenues	$	334,242	5%	$	317,879	$	987,268	4%	$	944,768

The following table compares the .com and .net domain name registrations in the domain name base:

	September 30, 2021	% Change	September 30, 2020
.com and .net domain name registrations in the domain name base	172.1 million	5%	163.7 million

Revenues increased by $16.4 million and $42.5 million during the three and nine months ended September 30, 2021, respectively, as compared to the same periods last year, primarily due to an increase in revenues from the operation of the registry for the .com TLD driven by a 5% increase in the domain name base for .com.

Growth in the domain name base has been primarily driven by continued internet growth and marketing activities carried out by us and our registrars. However, competitive pressure from ccTLDs, other gTLDs, services that offer alternatives for an online presence, such as social media, ongoing changes in internet practices and behaviors of consumers and business, as well as the motivation of existing domain name registrants managing their investment in domain names, and historical global economic uncertainty, has limited the rate of growth of the domain name base in recent years and may do so in the remainder of 2021 and beyond.

We expect quarterly revenues will continue to grow during the fourth quarter of 2021 compared to each of the first three quarters of 2021, as a result of continued growth in the aggregate number of .com domain names and the impact of the price increase for .com domain names which became effective September 1, 2021.

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Geographic revenues

We generate revenues in the U.S.; Europe, the Middle East and Africa (“EMEA”); China; and certain other countries, including Canada, Australia, and Japan.

The following table presents a comparison of our geographic revenues:

	Three Months Ended September 30,					Nine Months Ended  September 30,
	2021		% Change	2020		2021		% Change	2020
	(Dollars in thousands)
U.S.	$	214,352	6%	$	202,934	$	632,424	5%	$	599,845
EMEA	58,615		8%	54,034		172,717		9%	159,103
China	24,607		(10)%	27,463		74,974		(14)%	86,676
Other	36,668		10%	33,448		107,153		8%	99,144
Total revenues	$	334,242		$	317,879	$	987,268		$	944,768

Revenues in the table above are attributed to the country of domicile and the respective regions in which our registrars are located; however, this may differ from the regions where the registrars operate or where registrants are located. Revenue growth for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenue growth for each region may also be impacted by registrars domiciled in one region, registering domain names in another region. During the three and nine months ended September 30, 2021, revenues increased in all regions except China. Revenues from registrars based in China declined during the three and nine months ended September 30, 2021 as a result of lower new registrations and renewal rates in the country.

Cost of revenues

Cost of revenues consist primarily of salaries and employee benefits expenses for our personnel who manage the operational systems, depreciation expenses, operational costs associated with the delivery of our services, fees paid to ICANN, customer support and training, costs of facilities and computer equipment used in these activities, telecommunications expense and allocations of indirect costs such as corporate overhead.

A comparison of Cost of revenues is presented below:

	Three Months Ended September 30,					Nine Months Ended  September 30,
	2021		% Change	2020		2021		% Change	2020
	(Dollars in thousands)
Cost of revenues	$	47,801	6%	$	45,024	$	142,565	6%	$	134,205

Cost of revenues increased by $2.8 million during the three months ended September 30, 2021, compared to the same period last year, due to a combination of individually insignificant factors.

Cost of revenues increased by $8.4 million during the nine months ended September 30, 2021, compared to the same period last year, primarily due to a $4.4 million increase in registry fees payable to ICANN in connection with the operation of the registry for the .com TLD. Allocated overhead expenses also increased by $1.9 million due to an increase in total allocable expenses.

We expect Cost of revenues as a percentage of revenues to remain consistent during the remainder of 2021 compared to the nine months ended September 30, 2021.

Sales and marketing

Sales and marketing expenses consist primarily of salaries and other personnel-related expenses, travel and related expenses, trade shows, costs of computer and communications equipment and support services, facilities costs, consulting fees, costs of marketing programs, such as online, television, radio, print and direct mail advertising costs, and allocations of indirect costs such as corporate overhead.

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A comparison of Sales and marketing expenses is presented below:

	Three Months Ended September 30,					Nine Months Ended  September 30,
	2021		% Change	2020		2021		% Change	2020
	(Dollars in thousands)					(Dollars in thousands)
Sales and marketing	$	9,410	12%	$	8,389	$	28,115	18%	$	23,883

Sales and marketing expenses increased by $1.0 million during the three months ended September 30, 2021, compared to the same period last year, due to a combination of individually insignificant factors.

Sales and marketing expenses increased by $4.2 million during the nine months ended September 30, 2021, compared to the same period last year, primarily due to an increase in salary and employee benefits expenses, including stock-based compensation, and a combination of individually insignificant factors. Salary and employee benefits expenses, including stock-based compensation, increased by $2.5 million due to an increase in average headcount and higher expenses for salaries and certain employee related benefits.

We expect Sales and marketing expenses as a percentage of revenues to increase slightly during the remainder of 2021, compared to the nine months ended September 30, 2021.

Research and development

Research and development expenses consist primarily of costs related to research and development personnel, including salaries and other personnel-related expenses, consulting fees, facilities costs, computer and communications equipment, support services used in our service and technology development, and allocations of indirect costs such as corporate overhead.

A comparison of Research and development expenses is presented below:

	Three Months Ended September 30,					Nine Months Ended  September 30,
	2021		% Change	2020		2021		% Change	2020
	(Dollars in thousands)
Research and development	$	19,566	(1)%	$	19,708	$	59,685	8%	$	55,268

Research and development expenses remained consistent during the three months ended September 30, 2021, compared to the same period last year.

Research and development expenses increased by $4.4 million during the nine months ended September 30, 2021, compared to the same period last year, primarily due to an increase in salary and employee benefits expenses, including stock-based compensation, and a combination of individually insignificant factors. Salary and employee benefits expenses, including stock-based compensation, increased by $2.5 million due to a slight increase in average headcount and higher expenses for salaries and certain employee related benefits.

We expect Research and development expenses as a percentage of revenues to remain consistent during the remainder of 2021 compared to the nine months ended September 30, 2021.

General and administrative

General and administrative expenses consist primarily of salaries and other personnel-related expenses for our executive, administrative, legal, finance, information technology and human resources personnel, costs of facilities, computer and communications equipment, management information systems, support services, professional services fees, and certain tax and license fees, offset by allocations of indirect costs such as facilities and shared services expenses to other cost types.

A comparison of General and administrative expenses is presented below:

	Three Months Ended September 30,					Nine Months Ended  September 30,
	2021		% Change	2020		2021		% Change	2020
	(Dollars in thousands)
General and administrative	$	36,160	(5)%	$	38,109	$	112,212	—%	$	111,719

General and administrative expenses decreased by $1.9 million during the three months ended September 30, 2021, compared to the same period last year, primarily due to a $2.1 million decrease in external legal costs on various projects.

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General and administrative expenses increased by $0.5 million during the nine months ended September 30, 2021, compared to the same period last year, due to increases in salary and employee benefits expenses, equipment and software expenses, and stock-based compensation expenses, partially offset by an increase in overhead expenses allocated to other cost types and decreases in legal expenses and charitable contributions. Salary and employee benefits expenses increased by $4.6 million due to an increase in average headcount and higher expenses for certain employee health insurance related benefits. Equipment and software expenses increased by $4.3 million due to expenses related to network security and other software services. Stock-based compensation expenses increased by $3.3 million due to higher achievement levels on certain performance-based RSU grants and increases in the total value of RSUs granted in 2021. Overhead expenses allocated to other cost types increased by $3.7 million due to an increase in the total allocable expenses. Legal expenses decreased by $4.5 million due to a decrease in external legal costs on various projects. Charitable contributions decreased by $2.0 million due to contributions we made during the nine months ended September 30, 2020 to help with immediate COVID-related hardship and to support social justice efforts, compared to ongoing contributions during the nine months ended September 30, 2021.

We expect General and administrative expenses as a percentage of revenues to remain consistent during the remainder of 2021 compared to the nine months ended September 30, 2021.

Interest expense

Interest expense decreased by $3.7 million and $3.2 million in the three and nine months ended September 30, 2021, respectively, compared to the same periods last year due to the lower interest rate on our 2031 Notes compared to the 2023 Notes which were redeemed in June 2021. We expect Interest expense in the fourth quarter of 2021 to be consistent with the third quarter of 2021.

Non-operating income (loss), net

The following table presents the components of Non-operating income (loss), net:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
Interest income	$	111	$	805	$	438	$	7,500
Loss on extinguishment of debt	—		—		(2,149)		—
Gain on sale of business	—		(9)		—		5,602
Transition services income	—		—		—		2,100
Other, net	53		(21)		278		60
Total non-operating income (loss), net	$	164	$	775	$	(1,433)	$	15,262

Interest income decreased in the three and nine months ended September 30, 2021 due to a decline in interest rates on our investments in debt securities. The redemption of the 2023 Notes resulted in a loss on debt extinguishment of $2.1 million related to the unamortized debt issuance costs on the notes during the second quarter of 2021. The gain on sale of business in 2020 represents the excess of the contingent consideration received related to the divested security services business compared to the estimated receivable. The transition services income in 2020 relates to the divested security services business. The transition services agreement ended in February 2020.

We do not expect Non-operating income (loss), net to be significant during the remainder of 2021.

Income tax expense (benefit)

The following table presents Income tax expense (benefit) and the effective tax rate:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(Dollars in thousands)
Income tax expense (benefit)	$	46,018		$	13,908		$	124,083		$	(90,226)
Effective tax rate	23		%	8		%	21		%	(16)		%

When compared to the statutory federal rate of 21%, the effective tax rates above reflect a lower effective tax rate on foreign income and excess tax benefits related to stock-based compensation, which are offset by state income taxes and U.S. taxes on foreign earnings, net of foreign tax credits. The effective tax rate for the three and nine months ended September 30, 2020 also reflected the remeasurement of unrecognized tax benefits discussed below.

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We remeasured certain previously unrecognized income tax benefits, which resulted in the recognition of $24.0 million and $191.8 million of income tax benefits in the three and nine months ended September 30, 2020, respectively. The most significant portion of these tax benefits related to the worthless stock deduction taken in 2013, which resulted in the recognition of a $167.8 million benefit in the first quarter of 2020. These remeasurements were based on written confirmations from the IRS, received in the first and third quarters of 2020, indicating no examination adjustments would be proposed related to the worthless stock deduction or certain other matters reviewed as part of the audit of our federal income tax returns for 2010 through 2014. Notwithstanding these written confirmations, our U.S. federal income tax returns for those years remain under examination by the IRS.

We expect our annual effective tax rate for 2021 to be between 20% and 23%.

Liquidity and Capital Resources

The following table presents our principal sources of liquidity:

	September 30,		December 31,
	2021		2020
	(In thousands)
Cash and cash equivalents	$	256,869	$	401,194
Marketable securities	941,552		765,713
Total	$	1,198,421	$	1,166,907

The marketable securities primarily consist of debt securities issued by the U.S. Treasury meeting the criteria of our investment policy, which is focused on the preservation of our capital through investment in investment grade securities. The cash equivalents consist of amounts invested in money market funds, time deposits and U.S. Treasury bills purchased with original maturities of three months or less. As of September 30, 2021, all of our debt securities have contractual maturities of less than one year. Our cash and cash equivalents are readily accessible. For additional information on our investment portfolio, see Note 2, “Financial Instruments,” of our Notes to Condensed Consolidated Financial Statements in Part I, Item I of this Quarterly Report on Form 10-Q.

During the three months ended September 30, 2021, we repurchased 0.8 million shares of our common stock for an aggregate cost of $172.4 million. As of September 30, 2021, there was approximately $565.1 million remaining available for future share repurchases under the share repurchase program which has no expiration date.

On June 8, 2021, we issued $750.0 million of 2.700% senior unsecured notes due June 15, 2031. On June 23, 2021, we used the net proceeds from the 2031 Notes, along with cash on hand, to redeem all of our $750.0 million aggregate principal amount of outstanding 4.625% senior notes due 2023. As of September 30, 2021, we also had $550.0 million principal amount outstanding of 4.75% senior unsecured notes due 2027 and $500.0 million principal amount outstanding of 5.25% senior unsecured notes due 2025. As of September 30, 2021, there were no borrowings outstanding under our $200.0 million credit facility that will expire in 2024.

We believe existing cash, cash equivalents and marketable securities, and funds generated from operations, together with our borrowing capacity under the unsecured revolving credit facility should be sufficient to meet our working capital, capital expenditure requirements, and to service our debt for at least the next 12 months. We regularly assess our cash management approach and activities in view of our current and potential future needs.

In summary, our cash flows for the nine months ended September 30, 2021 and 2020 were as follows:

	Nine Months Ended  September 30,
	2021		2020
	(In thousands)
Net cash provided by operating activities	$	600,909	$	534,962
Net cash used in investing activities	(215,093)		(305,820)
Net cash used in financing activities	(533,318)		(591,128)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(600)		(506)
Net decrease in cash, cash equivalents, and restricted cash	$	(148,102)	$	(362,492)

Cash flows from operating activities

Our largest source of operating cash flows is cash collections from our customers. Our primary uses of cash from operating activities are for personnel-related expenditures, and other general operating expenses, as well as payments related to taxes, interest and facilities.

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Net cash provided by operating activities increased during the nine months ended September 30, 2021, compared to the same period last year, primarily due to an increase in cash received from customers, partially offset by increases in cash paid to employees and vendors, cash paid for income taxes, cash paid for interest, and decreases in cash received from interest on investments and from transition services. Cash received from customers increased primarily due to higher domain name registrations and renewals and the impact of the .com price increase which became effective September 1, 2021. The increased volume of renewal transactions was due in part to early renewal transactions before the .com price increase became effective. Cash paid to employees and vendors increased primarily due to the timing of payments and an increase in operating expenses. Cash paid for income taxes increased primarily due to comparatively higher federal, state, and foreign taxes. Cash paid for interest increased as the result of the payment of interest on our 2023 Notes through the date of redemption. Cash received from interest on investments decreased due to a decline in interest rates. Cash received from transition services decreased due to the expiration of the transition services agreement related to our divested security services business in February 2020.

Cash flows from investing activities

The changes in cash flows from investing activities primarily relate to purchases, maturities and sales of marketable securities, purchases of property and equipment and the sale of businesses.

Net cash used in investing activities decreased during the nine months ended September 30, 2021, compared to the same period last year, primarily due to a decrease in purchases of marketable securities, net of proceeds from maturities and sales of marketable securities, partially offset by payments received during 2020 related to our divested security services business and an increase in purchases of property and equipment.

Cash flows from financing activities

The changes in cash flows from financing activities primarily relate to share repurchases, proceeds from and repayment of borrowings, and our employee stock purchase plan.

Net cash used in financing activities decreased during the nine months ended September 30, 2021, compared to the same period last year, primarily due to proceeds received from the issuance of the 2031 Notes and a decrease in share repurchases, partially offset by the redemption of our 2023 Notes.

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no significant changes in our market risk exposures since December 31, 2020.

ITEM 4.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based on our management’s evaluation, with the participation of our Chief Executive Officer (our principal executive officer) and our Chief Financial Officer (our principal financial officer), as of September 30, 2021, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended September 30, 2021 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Inherent Limitations of Disclosure Controls and Internal Control over Financial Reporting

Because of their inherent limitations, our disclosure controls and procedures and our internal control over financial reporting may not prevent material errors or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. The effectiveness of our disclosure controls and procedures and our internal control over financial reporting is subject to risks, including that the control may become inadequate because of changes in conditions or that the degree of compliance with our policies or procedures may deteriorate.

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PART II—OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

We are involved in various investigations, claims and lawsuits arising in the normal conduct of our business, none of which, in our opinion, will have a material adverse effect on our financial condition, results of operations, or cash flows. We cannot assure you that we will prevail in any litigation. Regardless of the outcome, any litigation may require us to incur significant litigation expense and may result in significant diversion of management attention.

ITEM 1A.    RISK FACTORS

Our business, operating results, financial condition, reputation, cash flows or prospects can be materially adversely affected by a number of factors including but not limited to those described in Part I, Item 1A of the 2020 Form 10-K under the heading “Risk Factors.” In such case, the trading price of our common stock could decline and you could lose part or all of your investment. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also materially adversely affect our business, operating results, financial condition, reputation, cash flows and prospects. Actual results could differ materially from those projected in the forward-looking statements contained in this Form 10-Q as a result of the risk factors described in Part I, Item 1A of the 2020 Form 10-K and in other filings we make with the SEC. There have been no material changes to the Company’s risk factors since the 2020 Form 10-K.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table presents the share repurchase activity during the three months ended September 30, 2021:

	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
	(Shares in thousands)
July 1 - 31, 2021	248	$	228.30	248	$	680.9	million
August 1 - 31, 2021	278	$	212.99	278	$	621.7	million
September 1 - 30, 2021	259	$	218.43	259	$	565.1	million
	785			785

(1) Effective February 11, 2021, our Board of Directors authorized the repurchase of our common stock in the amount of $747.0 million, in addition to the $253.0 million that remained available for repurchases under the share repurchase program, for a total repurchase authorization of up to $1.00 billion under the program. The share repurchase program has no expiration date. Purchases made under the program could be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions.

21

ITEM 6.    EXHIBITS

As required under Item 6—Exhibits, the exhibits filed as part of this report are provided in this separate section. The exhibits included in this section are as follows:

Exhibit Number	Exhibit Description	Incorporated by Reference
		Form	Date	Number	Filed Herewith
31.01	Certification of Principal Executive Officer pursuant to Exchange Act Rule 13a-14(a).				X
31.02	Certification of Principal Financial Officer pursuant to Exchange Act Rule 13a-14(a).				X
32.01	Certification of Principal Executive Officer pursuant to Exchange Act Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the U.S. Code (18 U.S.C. 1350). *				X
32.02	Certification of Principal Financial Officer pursuant to Exchange Act Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the U.S. Code (18 U.S.C. 1350). *				X
101	Interactive Data File. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.				X
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).				X

* As contemplated by SEC Release No. 33-8212, these exhibits are furnished with this Quarterly Report on Form 10-Q and are not deemed filed with the SEC and are not incorporated by reference in any filing of VeriSign, Inc. under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in such filings.

22

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		VERISIGN, INC.
Date: October 28, 2021	By:	/S/    D. JAMES BIDZOS
		D. James Bidzos
		Chief Executive Officer

Date: October 28, 2021	By:	/S/   GEORGE E. KILGUSS, III
		George E. Kilguss, III
		Chief Financial Officer

23

EX-31.01

EXHIBIT 31.01

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, D. James Bidzos, certify that:

1. I have reviewed this quarterly report on Form 10-Q of VeriSign, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 28, 2021	By:	/S/ D. JAMES BIDZOS
		D. James Bidzos
		Chief Executive Officer

EX-31.02

EXHIBIT 31.02

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO

EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, George E. Kilguss, III, certify that:

1. I have reviewed this quarterly report on Form 10-Q of VeriSign, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 28, 2021	By:	/S/ GEORGE E. KILGUSS, III
		George E. Kilguss, III
		Chief Financial Officer

EX-32.01

EXHIBIT 32.01

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, D. James Bidzos, Chief Executive Officer of VeriSign, Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. the Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended September 30, 2021, as filed with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: October 28, 2021	/S/ D. JAMES BIDZOS
	D. James Bidzos
	Chief Executive Officer

EX-32.02

EXHIBIT 32.02

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, George E. Kilguss, III, Chief Financial Officer of VeriSign, Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. the Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended September 30, 2021, as filed with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: October 28, 2021	/S/ GEORGE E. KILGUSS, III
	George E. Kilguss, III
	Chief Financial Officer

XML

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2021	Oct. 22, 2021
Document And Entity Information [Abstract]
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	VRSN
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3221585
Entity Address, Postal Zip Code	20190
Document Transition Report	false
Document Quarterly Report	true
Entity Registrant Name	VERISIGN INC/CA
Entity Central Index Key	0001014473
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2021
Entity File Number	000-23593
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		111,078,436
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Address, Address Line One	12061 Bluemont Way,
Entity Address, City or Town	Reston,
Entity Address, State or Province	VA
City Area Code	703
Local Phone Number	948-3200
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false

XML

Condensed Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 256,869	$ 401,194
Marketable securities	941,552	765,713
Other Assets, Current	65,989	51,033
Total current assets	1,264,410	1,217,940
Property and equipment, net	249,093	245,571
Goodwill	52,527	52,527
Deferred Income Tax Assets, Net	65,163	67,914
Deposits to acquire Intangible Assets	145,000	145,000
Other long-term assets	38,514	37,958
Total long-term assets	550,297	548,970
Total assets	1,814,707	1,766,910
Current liabilities:
Accounts payable and accrued liabilities	204,511	208,642
Deferred revenues	843,664	780,051
Total current liabilities	1,048,175	988,693
Long-term deferred revenues	314,089	282,838
Senior Notes	1,785,152	1,790,083
Other long-term liabilities	84,869	95,494
Total long-term liabilities	2,184,110	2,168,415
Total liabilities	3,232,285	3,157,108
Commitments and contingencies
Stockholders' deficit:
Preferred stock-par value $.001 per share	0	0
Common Stocks, Including Additional Paid in Capital	13,793,049	14,275,160
Accumulated deficit	(15,207,854)	(15,662,602)
Accumulated other comprehensive loss	(2,773)	(2,756)
Total stockholders' deficit	(1,417,578)	(1,390,198)
Total liabilities and stockholders' deficit	$ 1,814,707	$ 1,766,910
Common Stock, Shares, Issued	354,154	353,789
Common stock, outstanding shares	111,283	113,470
Preferred stock, authorized shares	5,000	5,000
Preferred stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	1,000,000	1,000,000
Common stock, par value	$ 0.001	$ 0.001

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized shares	5,000	5,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	1,000,000	1,000,000
Common Stock, Shares, Issued	354,154	353,789
Common stock, outstanding shares	111,283	113,470

XML

Condensed Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues	$ 334,242	$ 317,879	$ 987,268	$ 944,768
Costs and expenses:
Cost of revenues	47,801	45,024	142,565	134,205
Sales and marketing	9,410	8,389	28,115	23,883
Research and development	19,566	19,708	59,685	55,268
General and administrative	36,160	38,109	112,212	111,719
Total costs and expenses	112,937	111,230	342,577	325,075
Operating income	221,305	206,649	644,691	619,693
Interest expense	(18,829)	(22,537)	(64,427)	(67,607)
Non-operating income (loss), net	164	775	(1,433)	15,262
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total	202,640	184,887	578,831	567,348
Income tax expense	(46,018)	(13,908)	(124,083)	90,226
Net Income	156,622	170,979	454,748	657,574
Other comprehensive income (loss)	61	(383)	(17)	(120)
Comprehensive Income	$ 156,683	$ 170,596	$ 454,731	$ 657,454
Basic income (loss) per share
Net Income	$ 1.40	$ 1.49	$ 4.05	$ 5.70
Diluted income (loss) per share
Net Income	$ 1.40	$ 1.49	$ 4.04	$ 5.68
Shares used to compute net income per share
Basic	111,664	114,655	112,389	115,456
Diluted	111,793	114,831	112,530	115,699

XML

Condensed Consolidated Statements of Stockholders' Deficit Statement - USD ($) $ in Thousands	Total	Common Stock Including Additional Paid in Capital [Member]	Accumulated Deficit [Member]	AOCI Attributable to Parent [Member]
Stockholders' Deficit	$ (1,490,100)	$ 14,990,011	$ (16,477,490)	$ (2,621)
Stock-based compensation expense		37,526
Stock Issued During Period, Value, Employee Stock Purchase Plan		12,577
Stock Repurchased During Period, Value		(603,705)
Net Income	657,574		657,574
Other Comprehensive Income (Loss), Net of Tax	(120)			(120)
Stockholders' Deficit	(1,400,324)	14,592,929	(15,990,895)	(2,358)
Stock-based compensation expense		13,078
Stock Issued During Period, Value, Employee Stock Purchase Plan		4,281
Stock Repurchased During Period, Value		(173,879)
Net Income			170,979
Other Comprehensive Income (Loss), Net of Tax	(383)			(383)
Stockholders' Deficit	(1,386,248)	14,436,409	(15,819,916)	(2,741)
Stockholders' Deficit	(1,390,198)	14,275,160	(15,662,602)	(2,756)
Stock-based compensation expense		42,282
Stock Issued During Period, Value, Employee Stock Purchase Plan		12,404
Stock Repurchased During Period, Value		(536,797)
Net Income	454,748		454,748
Other Comprehensive Income (Loss), Net of Tax	(17)			(17)
Stockholders' Deficit	(1,417,785)	13,949,525	(15,364,476)	(2,834)
Stock-based compensation expense		14,819
Stock Issued During Period, Value, Employee Stock Purchase Plan		4,303
Stock Repurchased During Period, Value		(175,598)
Net Income			156,622
Other Comprehensive Income (Loss), Net of Tax	61			61
Stockholders' Deficit	$ (1,417,578)	$ 13,793,049	$ (15,207,854)	$ (2,773)

XML

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 454,748	$ 657,574
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	35,609	34,463
Stock-based compensation	41,019	36,106
Other Noncash Income (Expense)	(5,410)	8,482
Changes in operating assets and liabilities
Other assets	(19,735)	(11,107)
Accounts payable and accrued liabilities	(5,529)	(5,912)
Deferred revenues	94,863	27,673
Deferred Income Taxes	(5,476)	(195,353)
Net cash provided by operating activities	600,909	534,962
Net Cash Provided by (Used in) Investing Activities [Abstract]
Proceeds from maturities and sales of marketable securities	2,246,148	1,804,541
Purchases of marketable securities	(2,421,705)	(2,093,437)
Payments for (Proceeds from) Businesses and Interest in Affiliates	0	20,009
Purchases of property and equipment	(39,536)	(36,933)
Net cash used in investing activities	(215,093)	(305,820)
Repayments of Debt, Maturing in More than Three Months	(750,000)	0
Proceeds from Debt, Net of Issuance Costs	741,075	0
Cash flows from financing activities:
Proceeds from employee stock purchase plans	12,404	12,577
Repurchases of common stock	(536,797)	(603,705)
Net cash used in financing activities	(533,318)	(591,128)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(600)	(506)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(148,102)	(362,492)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period	410,601	517,601
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period	262,499	155,109
Supplemental cash flow disclosures:
Cash paid for interest	61,845	56,860
Cash paid for income taxes, net of refunds received	$ 132,202	$ 105,258

XML

Basis Of Presentation

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Presentation

Basis of Presentation

Interim Financial Statements

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by VeriSign, Inc. (“Verisign” or the “Company”) in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes contained in Verisign’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) filed with the SEC on February 19, 2021.

XML

Financial Instruments

9 Months Ended

Sep. 30, 2021

Financial Instruments, Owned, at Fair Value [Abstract]

Financial Instruments

Financial Instruments

Cash, Cash Equivalents, and Marketable Securities

The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis:

	September 30,		December 31,
	2021		2020
	(In thousands)
Cash	$	24,317	$	28,832
Time deposits	3,708		4,176
Money market funds (Level 1)	208,377		129,627
Debt securities issued by the U.S. Treasury (Level 1)	967,649		1,013,679
Total	$	1,204,051	$	1,176,314
Cash and cash equivalents	$	256,869	$	401,194
Restricted cash (included in Other long-term assets)	5,630		9,407
Total Cash, cash equivalents, and restricted cash	262,499		410,601
Marketable securities	941,552		765,713
Total	$	1,204,051	$	1,176,314

The fair value of the debt securities held as of September 30, 2021, included less than $0.1 million of gross and net unrealized gains. All of the debt securities held as of September 30, 2021 are scheduled to mature in less than one year.

Fair Value Measurements

The fair value of the Company’s investments in money market funds approximates their face value. Such instruments are included in Cash and cash equivalents. The fair value of the debt securities consisting of U.S. Treasury bills is based on their quoted market prices. Debt securities purchased with original maturities in excess of three months are included in Marketable securities. The fair value of all of these financial instruments are classified as Level 1 in the fair value hierarchy.

The Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable. As of September 30, 2021, the carrying value of these financial instruments approximated their fair value. The fair values of the senior notes due 2025, 2027, and 2031 were $563.6 million, $580.0 million, and $763.5 million, respectively, as of September 30, 2021. The fair values of these debt instruments are based on available market information from public data sources and are classified as Level 2.

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Other Balance Sheet Items

9 Months Ended

Sep. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Other Balance Sheet Items

Selected Balance Sheet Items

Other Current Assets

Other current assets consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Prepaid expenses	$	31,189	$	17,920
Prepaid registry fees	24,513		22,654
Accounts receivable, net	5,062		4,642
Taxes receivable	4,091		3,572
Other	1,134		2,245
Total other current assets	$	65,989	$	51,033

Other Long-Term Assets

Other long-term assets consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Long-term prepaid expenses	$	12,250	$	7,105
Operating lease right-of-use asset	9,625		11,277
Long-term prepaid registry fees	8,990		7,997
Restricted cash	5,630		9,407
Other	2,019		2,172
Total other long-term assets	$	38,514	$	37,958

The prepaid expenses included in Other current assets and Other long-term assets as of September 30, 2021 are primarily related to prepaid hardware and software maintenance expenses. The current and long-term prepaid registry fees in the tables above relate to the fees the Company pays to Internet Corporation for Assigned Names and Numbers (“ICANN”) for each annual increment of .com domain name registrations and renewals which are deferred and amortized over the domain name registration term. The amount of prepaid registry fees as of September 30, 2021 reflects amortization of $9.7 million and $28.5 million during the three and nine months ended September 30, 2021 which was recorded in Cost of Revenues.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Accounts payable and accrued expenses	$	6,233	$	12,340
Customer deposits	64,650		53,631
Accrued employee compensation	48,890		54,596
Interest payable	24,988		24,408
Taxes payable and other non-income tax liabilities	24,593		27,194
Accrued registry fees	14,717		13,090
Customer incentives payable	10,210		12,556
Other accrued liabilities	10,230		10,827
Total accounts payable and accrued liabilities	$	204,511	$	208,642

Customer deposits primarily relate to advance payments to cover domain name registration activity by registrars. Accrued employee compensation primarily consists of liabilities for employee leave, salaries, payroll taxes, employee contributions to the employee stock purchase plan, and incentive compensation. Accrued employee incentive compensation as of December 31, 2020, was paid during the nine months ended September 30, 2021. Interest payable varies at each period-end based on the payment due dates for each senior note issuance. Taxes payable and other non-income tax liabilities reflect amounts accrued for the income tax provision and payments made during the period. Customer incentives payable includes amounts related to rebates and marketing programs payable to registrars. These amounts may vary from period to period due to the timing of payments.

Long-term Tax and Other Liabilities

Long-term tax and other liabilities consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Long-term tax liabilities	$	82,108	$	90,335
Long-term operating lease liability	2,761		5,159
Long-term tax and other liabilities	$	84,869	$	95,494

Long-term tax liabilities as of September 30, 2021 reflects a $7.7 million reclassification of a portion of the transition tax liability on accumulated foreign earnings from non-current to current as of September 30, 2021.

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Stockholders' Deficit

9 Months Ended

Sep. 30, 2021

Stockholders' Equity Note [Abstract]

Stockholders' (Deficit) Equity

Note 4. Stockholders’ Deficit

Effective February 11, 2021, the Company’s Board of Directors authorized the repurchase of its common stock in the amount of $747.0 million, in addition to the $253.0 million that remained available for repurchases under the share repurchase program, for a total repurchase authorization of up to $1.00 billion under the program. The program has no expiration date. Purchases made under the program could be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. During the three and nine months ended September 30, 2021, the Company repurchased 0.8 million and 2.5 million shares of its common stock, respectively, at an average stock price of $219.62 and $210.55, respectively. The aggregate cost of the repurchases in the three and nine months ended September 30, 2021 was $172.4 million and $517.6 million, respectively. As of September 30, 2021, there was approximately $565.1 million remaining available for future share repurchases under the share repurchase program.

During the nine months ended September 30, 2021, the Company placed 0.1 million shares, at an average stock price of $205.10, and for an aggregate cost of $19.3 million, into treasury stock for purposes related to tax withholding upon vesting of Restricted Stock Units (“RSUs”).

Since inception, the Company has repurchased 242.9 million shares of its common stock for an aggregate cost of $11.52 billion, which is presented as a reduction of Additional paid-in capital.

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Calculation Of Net Income Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Calculation Of Net Income Per Share Attributable To Verisign Stockholders

Calculation of Earnings per Share

The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share:

	Three Months Ended September 30,		Nine Months Ended  September 30,
	2021	2020	2021	2020
	(In thousands)
Weighted-average shares of common stock outstanding	111,664	114,655	112,389	115,456
Weighted-average potential shares of common stock outstanding:
Unvested RSUs and ESPP	129	176	141	243
Shares used to compute diluted earnings per share	111,793	114,831	112,530	115,699

The calculation of diluted weighted average shares outstanding excludes 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.

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Revenue (Notes)

9 Months Ended

Sep. 30, 2021

Revenue Recognition [Abstract]

Revenue from Contract with Customer [Table Text Block]

Revenues

The Company generates revenues in the U.S.; Europe, the Middle East and Africa (“EMEA”); China; and certain other countries, including Canada, Australia, and Japan.

The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
U.S.	$	214,352	$	202,934	$	632,424	$	599,845
EMEA	58,615		54,034		172,717		159,103
China	24,607		27,463		74,974		86,676
Other	36,668		33,448		107,153		99,144
Total revenues	$	334,242	$	317,879	$	987,268	$	944,768

Revenues in the table above are attributed to the country of domicile and the respective regions in which registrars are located; however, this may differ from the regions where the registrars operate or where registrants are located. Revenues for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenues for each region may also be impacted by registrars domiciled in one region, registering domain names in another region.

Deferred Revenues

As payment for domain name registrations and renewals are due in advance of our performance, we record these amounts as deferred revenues. The increase in the deferred revenues balance for the nine months ended September 30, 2021 was primarily driven by amounts billed in the nine months ended September 30, 2021 for domain name registrations and renewals to be recognized as revenues in future periods, offset by refunds for domain name renewals deleted during the 45-day grace period, and $665.1 million of revenues recognized that were included in the deferred revenues balance at the beginning of the period. The higher deferred revenue balance as of September 30, 2021 also reflects an increase in the volume of early renewal transactions that occurred before the .com price increase became effective on September 1, 2021. The balance of deferred revenues as of September 30, 2021 represents our aggregate remaining performance obligations. Amounts included in current deferred revenues are all expected to be recognized in revenues within 12 months, except for a portion of deferred revenues that relates to domain name renewals that are deleted in the 45-day grace period following the transaction. The long-term deferred revenues amounts will be recognized in revenues over several years and in some cases up to 10 years.

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation

Stock-based Compensation

Stock-based compensation is classified in the Condensed Consolidated Statements of Comprehensive Income in the same expense line items as cash compensation. The following table presents the classification of stock-based compensation:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
Cost of revenues	$	1,636	$	1,558	$	4,925	$	4,761
Sales and marketing	1,202		830		3,241		2,558
Research and development	2,151		1,810		6,078		5,266
General and administrative	9,439		8,480		26,775		23,521
Total stock-based compensation expense	$	14,428	$	12,678	$	41,019	$	36,106

The following table presents the nature of the Company’s total stock-based compensation:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
RSUs	$	11,899	$	10,871	$	31,777	$	29,060
Performance-based RSUs	1,857		1,102		7,283		5,146
ESPP	1,063		1,105		3,222		3,320
Capitalization (included in Property and equipment, net)	(391)		(400)		(1,263)		(1,420)
Total stock-based compensation expense	$	14,428	$	12,678	$	41,019	$	36,106

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Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt Disclosure

Debt

On June 8, 2021, the Company issued $750.0 million of 2.700% senior unsecured notes due June 15, 2031 (“2031 Notes”). The 2031 Notes were issued at 99.712% of par value. The Company will pay interest on the notes semi-annually on June 15 and December 15, commencing on December 15, 2021. The total discount and issuance costs of $8.9 million are presented on the balance sheet as a reduction of the debt obligation and are being amortized to Interest expense over the 10-year term of the notes.

On June 23, 2021, the Company used the net proceeds from the 2031 Notes and cash on hand, to redeem all of its $750.0 million aggregate principal amount of outstanding 4.625% senior notes due 2023 (“2023 Notes”). The redemption of the 2023 Notes resulted in a loss on debt extinguishment of $2.1 million related to the unamortized debt issuance costs on the notes in the second quarter of 2021. The loss on extinguishment is included in Non-operating income (loss) during the nine months ended September 30, 2021.

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Non-operating (loss) income

9 Months Ended

Sep. 30, 2021

Non-operating (loss) income, net [Abstract]

Other Income and Other Expense Disclosure

Non-operating Income (Loss), Net

The following table presents the components of Non-operating income (loss), net:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
Interest income	$	111	$	805	$	438	$	7,500
Loss on extinguishment of debt	—		—		(2,149)		—
Gain on sale of business	—		(9)		—		5,602
Transition services income	—		—		—		2,100
Other, net	53		(21)		278		60
Total non-operating income (loss), net	$	164	$	775	$	(1,433)	$	15,262

The lower interest income during the three and nine months ended September 30, 2021 reflects a decline in interest rates on our investments in debt securities. The gain on sale of business in 2020 represents the excess of the contingent consideration received related to the divested security services business compared to the estimated receivable. The transition services income in 2020 relates to the divested security services business. The transition services agreement ended in February 2020.

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Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table presents Income tax expense (benefit) and the effective tax rate:

	Three Months Ended September 30,						Nine Months Ended  September 30,
	2021			2020			2021			2020
	(Dollars in thousands)
Income tax expense (benefit)	$	46,018		$	13,908		$	124,083		$	(90,226)
Effective tax rate	23		%	8		%	21		%	(16)		%

When compared to the statutory federal rate of 21%, the effective tax rates above reflect a lower effective tax rate on foreign income and excess tax benefits related to stock-based compensation, which are offset by state income taxes and U.S.

taxes on foreign earnings, net of foreign tax credits. The effective tax rate for the three and nine months ended September 30, 2020 also reflected the remeasurement of unrecognized tax benefits discussed below.

The Company remeasured certain previously unrecognized income tax benefits, which resulted in the recognition of $24.0 million and $191.8 million of income tax benefits in the three and nine months ended September 30, 2020, respectively. The most significant portion of these tax benefits related to the worthless stock deduction taken in 2013, which resulted in the recognition of a $167.8 million benefit in the first quarter of 2020. These remeasurements were based on written confirmations from the Internal Revenue Service (“IRS”), received in the first and third quarters of 2020, indicating no examination adjustments would be proposed related to the worthless stock deduction or certain other matters reviewed as part of the audit of the Company’s federal income tax returns for 2010 through 2014. Notwithstanding these written confirmations, the Company’s U.S. federal income tax returns for those years remain under examination by the IRS.

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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Financial Instruments, Owned, at Fair Value [Abstract]

Cash, Cash Equivalents, And Marketable Securities

The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis:

	September 30,		December 31,
	2021		2020
	(In thousands)
Cash	$	24,317	$	28,832
Time deposits	3,708		4,176
Money market funds (Level 1)	208,377		129,627
Debt securities issued by the U.S. Treasury (Level 1)	967,649		1,013,679
Total	$	1,204,051	$	1,176,314
Cash and cash equivalents	$	256,869	$	401,194
Restricted cash (included in Other long-term assets)	5,630		9,407
Total Cash, cash equivalents, and restricted cash	262,499		410,601
Marketable securities	941,552		765,713
Total	$	1,204,051	$	1,176,314

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Other Balance Sheet Items (Tables)

9 Months Ended

Sep. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Other Current Assets

Other current assets consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Prepaid expenses	$	31,189	$	17,920
Prepaid registry fees	24,513		22,654
Accounts receivable, net	5,062		4,642
Taxes receivable	4,091		3,572
Other	1,134		2,245
Total other current assets	$	65,989	$	51,033

Schedule of Other Assets, Noncurrent [Table Text Block]

Other long-term assets consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Long-term prepaid expenses	$	12,250	$	7,105
Operating lease right-of-use asset	9,625		11,277
Long-term prepaid registry fees	8,990		7,997
Restricted cash	5,630		9,407
Other	2,019		2,172
Total other long-term assets	$	38,514	$	37,958

Components Of Accounts Payable And Accrued Liabilities

Accounts payable and accrued liabilities consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Accounts payable and accrued expenses	$	6,233	$	12,340
Customer deposits	64,650		53,631
Accrued employee compensation	48,890		54,596
Interest payable	24,988		24,408
Taxes payable and other non-income tax liabilities	24,593		27,194
Accrued registry fees	14,717		13,090
Customer incentives payable	10,210		12,556
Other accrued liabilities	10,230		10,827
Total accounts payable and accrued liabilities	$	204,511	$	208,642

Other Noncurrent Liabilities [Table Text Block]

Long-term tax and other liabilities consist of the following: 

	September 30,		December 31,
	2021		2020
	(In thousands)
Long-term tax liabilities	$	82,108	$	90,335
Long-term operating lease liability	2,761		5,159
Long-term tax and other liabilities	$	84,869	$	95,494

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Calculation Of Net Income Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share:

	Three Months Ended September 30,		Nine Months Ended  September 30,
	2021	2020	2021	2020
	(In thousands)
Weighted-average shares of common stock outstanding	111,664	114,655	112,389	115,456
Weighted-average potential shares of common stock outstanding:
Unvested RSUs and ESPP	129	176	141	243
Shares used to compute diluted earnings per share	111,793	114,831	112,530	115,699

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Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue Recognition [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
U.S.	$	214,352	$	202,934	$	632,424	$	599,845
EMEA	58,615		54,034		172,717		159,103
China	24,607		27,463		74,974		86,676
Other	36,668		33,448		107,153		99,144
Total revenues	$	334,242	$	317,879	$	987,268	$	944,768

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Classification Of Stock-Based Compensation

The following table presents the classification of stock-based compensation:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
Cost of revenues	$	1,636	$	1,558	$	4,925	$	4,761
Sales and marketing	1,202		830		3,241		2,558
Research and development	2,151		1,810		6,078		5,266
General and administrative	9,439		8,480		26,775		23,521
Total stock-based compensation expense	$	14,428	$	12,678	$	41,019	$	36,106

Nature Of Total Stock-Based Compensation

The following table presents the nature of the Company’s total stock-based compensation:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
RSUs	$	11,899	$	10,871	$	31,777	$	29,060
Performance-based RSUs	1,857		1,102		7,283		5,146
ESPP	1,063		1,105		3,222		3,320
Capitalization (included in Property and equipment, net)	(391)		(400)		(1,263)		(1,420)
Total stock-based compensation expense	$	14,428	$	12,678	$	41,019	$	36,106

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Non-operating (loss) income (Tables)

9 Months Ended

Sep. 30, 2021

Non-operating (loss) income, net [Abstract]

Schedule of Other Nonoperating Income (Expense) [Table Text Block]

The following table presents the components of Non-operating income (loss), net:

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2021		2020		2021		2020
	(In thousands)
Interest income	$	111	$	805	$	438	$	7,500
Loss on extinguishment of debt	—		—		(2,149)		—
Gain on sale of business	—		(9)		—		5,602
Transition services income	—		—		—		2,100
Other, net	53		(21)		278		60
Total non-operating income (loss), net	$	164	$	775	$	(1,433)	$	15,262

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Tax Expense From Continuing Operations And The Effective Tax Rate

The following table presents Income tax expense (benefit) and the effective tax rate:

	Three Months Ended September 30,						Nine Months Ended  September 30,
	2021			2020			2021			2020
	(Dollars in thousands)
Income tax expense (benefit)	$	46,018		$	13,908		$	124,083		$	(90,226)
Effective tax rate	23		%	8		%	21		%	(16)		%

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Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Cash	$ 24,317	$ 28,832
Time deposits	3,708	4,176
Money Market Funds (level 1)	208,377	129,627
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value	967,649	1,013,679
Total	1,204,051	1,176,314
Included in Cash and cash equivalents	256,869	401,194
Restricted Cash Equivalents, Noncurrent	5,630	9,407
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	262,499	410,601	$ 155,109	$ 517,601
Included in Marketable securities	$ 941,552	$ 765,713

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Financial Instruments Financial Instruments narrative (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Debt instrument fair value senior notes 2025	$ 563,600
Debt instrument fair value senior notes 2027	580,000
Debt instrument fair value senior notes 2031	763,500
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	$ 100

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Other Balance Sheet Items (Other Current Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Prepaid registry fees, current	$ 24,513	$ 22,654
Prepaid expenses	31,189	17,920
Accounts Receivable, Net	5,062	4,642
Income Taxes Receivable, Current	4,091	3,572
Other Assets, Miscellaneous, Current	1,134	2,245
Other Assets, Current	$ 65,989	$ 51,033

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Other Balance Sheet Items Other Balance Sheet Items (Other long-term assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Restricted Cash	$ 5,630	$ 9,407
Operating Lease, Right-of-Use Asset	9,625	11,277
Prepaid Expense, Noncurrent	12,250	7,105
Prepaid registry fees, noncurent	8,990	7,997
Other Assets, Miscellaneous, Noncurrent	2,019	2,172
Other Assets, Noncurrent	$ 38,514	$ 37,958

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Other Balance Sheet Items (Components Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Accounts payable	$ 6,233	$ 12,340
Accrued employee compensation	48,890	54,596
Taxes Payable	24,593	27,194
Interest Payable	24,988	24,408
Deposits	64,650	53,631
accrued fees	14,717	13,090
customer incentives payable	10,210	12,556
Other accrued liabilities	10,230	10,827
Total accounts payable and accrued liabilities	$ 204,511	$ 208,642

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Other Balance Sheet Items Non-Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
other tax liabilities, noncurrent	$ 82,108	$ 90,335
Operating Lease, Liability, Noncurrent	2,761	5,159
Other long-term liabilities	$ 84,869	$ 95,494

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Other Balance Sheet Items Other Balance Sheet Items (Narrative) (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)
Balance Sheet Related Disclosures [Abstract]
Amortization of Other Deferred Charges	$ 9,700	$ 28,500
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Current	$ 7,700	$ 7,700

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Stockholders' Deficit (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Feb. 11, 2021
Treasury Stock Repurchase Programs [Line Items]
Additional share repurchase amount authorized		$ 747.0
Remaining common stock available for repurchase	$ 565.1	$ 565.1	$ 253.0
Common stock, held in treasury	242.9	242.9
Common stock repurchased	$ 11,520.0	$ 11,520.0
Share Buyback Program [Member]
Treasury Stock Repurchase Programs [Line Items]
Common stock authorized to repurchase			$ 1,000.0
Common stock repurchase, share	0.8	2.5
Average stock price	$ 219.62	$ 210.55
Aggregate cost of share	$ 172.4	$ 517.6
Restricted Stock Units [Member]
Treasury Stock Repurchase Programs [Line Items]
Common stock repurchase, share		0.1
Average stock price		$ 205.10
Aggregate cost of share		$ 19.3

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Calculation Of Net Income Per Share (Weighted-Average Shares Used In Calculation Of Basic And Diluted EPS) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Weighted-average number of common shares outstanding	111,664	114,655	112,389	115,456
Unvested RSUs and ESPP	129	176	141	243
Shares used to compute diluted net income per share	111,793	114,831	112,530	115,699

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Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 334,242	$ 317,879	$ 987,268	$ 944,768
US [Member]
Disaggregation of Revenue [Line Items]
Revenues	214,352	202,934	632,424	599,845
EMEA [Member]
Disaggregation of Revenue [Line Items]
Revenues	58,615	54,034	172,717	159,103
China [Member]
Disaggregation of Revenue [Line Items]
Revenues	24,607	27,463	74,974	86,676
Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 36,668	$ 33,448	$ 107,153	$ 99,144

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Revenue Revenue (Narrative detail) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Revenue Recognition and Deferred Revenue [Abstract]
Deferred Revenue, Revenue Recognized	$ 665.1

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Stock-Based Compensation (Classification Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 14,428	$ 12,678	$ 41,019	$ 36,106
Cost Of Revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,636	1,558	4,925	4,761
Sales And Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,202	830	3,241	2,558
Research And Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	2,151	1,810	6,078	5,266
General And Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 9,439	$ 8,480	$ 26,775	$ 23,521

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Stock-Based Compensation (Nature Of Total Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Amount Capitalized	$ (391)	$ (400)	$ (1,263)	$ (1,420)
Stock-based compensation	14,428	12,678	41,019	36,106
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	11,899	10,871	31,777	29,060
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	1,857	1,102	7,283	5,146
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1,063	$ 1,105	$ 3,222	$ 3,320

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Debt (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 23, 2021
Extinguishment of Debt [Line Items]
Gain (Loss) on Extinguishment of Debt	$ 0	$ 0	$ (2,149)	$ 0
Due 2031 [Member]
Extinguishment of Debt [Line Items]
Debt Issuance Costs, Gross	8,900		8,900
Debt Instrument, Face Amount	$ 750,000		$ 750,000
Debt Instrument, Interest Rate, Stated Percentage	2.70%		2.70%
debt instrument, issue percentage	99.712%		99.712%
Due 2023 [Member]
Extinguishment of Debt [Line Items]
Gain (Loss) on Extinguishment of Debt	$ (2,100)
Debt Instrument, Face Amount					$ 750,000
Debt Instrument, Interest Rate, Stated Percentage					4.625%

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Non-operating (loss) income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Non-operating (loss) income, net [Abstract]
Gain (Loss) on Extinguishment of Debt	$ 0	$ 0	$ (2,149)	$ 0
Interest Income	111	805	438	7,500
Gain (Loss) on Disposition of Business	0	(9)	0	5,602
income from transition services	0	0	0	2,100
Other Nonoperating Income (Expense)	53	(21)	278	60
Nonoperating (loss) Income	$ 164	$ 775	$ (1,433)	$ 15,262

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Income Taxes (Income Tax Expense From Continuing Operations And Effective Tax Rate) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income tax expense from continuing operations	$ 46,018	$ 13,908	$ 124,083	$ (90,226)
Effective tax rate	23.00%	8.00%	21.00%	(16.00%)

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	$ 24,000		$ 191,800
Statutory federal rate		21.00%