Calculation Of Net Income Per Share Attributable To Verisign Stockholders

9 Months Ended

Sep. 30, 2011

Calculation Of Net Income Per Share Attributable To Verisign Stockholders [Abstract]

Calculation Of Net Income Per Share Attributable To Verisign Stockholders

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

The Company computes basic net income per share attributable to Verisign stockholders by dividing net income attributable to Verisign stockholders by the weighted-average number of common shares outstanding during the period. Diluted net 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 income per share attributable to Verisign stockholders:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(In thousands)
Weighted-average number of common shares outstanding		163,046		173,572		167,492		179,240
Weighted-average potential shares of common stock outstanding:
Stock options		186		424		353		397
Unvested restricted stock units		667		962		756		889
Conversion spread related to Convertible Debentures		—		—		555		—
Employee stock purchase plan		3		76		20		108
Shares used to compute diluted net income per share attributable to Verisign stockholders		163,902		175,034		169,176		180,634

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 September 30,				Nine Months  Ended September 30,
	2011		2010		2011		2010
	(In thousands, except per share data)
Weighted-average stock options outstanding		645		2,969		395		3,654
Weighted-average exercise price	$	33.68	$	31.33	$	35.85	$	31.06
Weighted-average restricted stock units outstanding		92		33		42		70
Employee stock purchase plan		746		73		419		486