Calculation Of Net (Loss) Income Per Share Attributable To Verisign Stockholders

6 Months Ended

Jun. 30, 2011

Calculation Of Net (Loss) Income Per Share Attributable To Verisign Stockholders

Calculation Of Net Income Per Share Attributable To Verisign Stockholders

Note 7. Calculation of Net (Loss) Income per Share Attributable to Verisign Stockholders

The Company computes basic net (loss) income per share attributable to Verisign stockholders by dividing net (loss) income attributable to Verisign stockholders by the weighted-average number of common shares outstanding during the period. Diluted net (loss) income per share attributable to Verisign stockholders gives effect to dilutive potential common shares, including outstanding stock options, unvested RSUs, conversion spread relating to the Convertible Debentures, and employee stock purchases using the treasury stock method. The following table presents the computation of weighted-average shares used in the calculation of basic and diluted net (loss) income per share attributable to Verisign stockholders:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(In thousands)
Weighted-average number of common shares outstanding		167,471		181,120		169,751		182,121
Weighted-average potential shares of common stock outstanding:
Stock options		—		431		436		384
Unvested restricted stock units		—		954		802		851
Conversion spread related to Convertible Debentures		—		—		833		—
Employee stock purchase plan		—		248		28		124
Shares used to compute diluted net (loss) income per share attributable to Verisign stockholders		167,471		182,753		171,850		183,480

The following table presents the weighted-average potential shares of common stock that were excluded from the above calculation because their effect was anti-dilutive, and the respective weighted-average exercise prices of the weighted-average stock options outstanding:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(In thousands, except per share data)
Weighted-average stock options outstanding		2,443		3,558		270		3,997
Weighted-average exercise price	$	27.14	$	31.37	$	38.43	$	30.96
Weighted-average restricted stock units outstanding		2,856		120		17		88
Employee stock purchase plan		653		—		255		693