Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
Our common stock is traded on the Nasdaq Global Select Market under the symbol VRSN. On February 12, 2021, there were 353 holders of record of our common stock. We cannot estimate the number of beneficial owners since many brokers and other institutions hold our stock on behalf of stockholders.
Share Repurchases
The following table presents the share repurchase activity during the three months ended December 31, 2020:
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)(2)
(Shares in thousands)
October 1 – 31, 2020 271 $205.95 271 $ 449.8 million
November 1 – 30, 2020 282 $197.67 282 $ 394.1 million
December 1 – 31, 2020 279 $209.14 279 $ 335.6 million
832 832
(1) Effective February 6, 2020, our Board of Directors authorized the repurchase of our common stock in the amount of $743.0 million, in addition to the $257.0 million that remained available for repurchases under the share repurchase program, for a total repurchase authorization of up to $1.0 billion under the program.
(2) 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 $1.0 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.
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Performance Graph
The information contained in the Performance Graph shall not be deemed to be “soliciting material” or “filed” with the SEC or subject to the liabilities of Section 18 of the Exchange Act, except to the extent that we specifically incorporate it by reference into a document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.
The following graph compares the cumulative total stockholder return on our common stock, the Standard and Poor’s (“S&P”) 500 Index, and the S&P 500 Information Technology Index. The graph assumes that $100 (and the reinvestment of any dividends thereafter) was invested in our common stock, the S&P 500 Index and the S&P 500 Information Technology Index on December 31, 2015, and calculates the return annually through December 31, 2020. The stock price performance on the following graph is not necessarily indicative of future stock price performance.
12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20
VeriSign, Inc. $ 100 $ 87 $ 131 $ 170 $ 221 $ 248
S&P 500 Index $ 100 $ 112 $ 136 $ 130 $ 171 $ 203
S&P 500 Information Technology Index $ 100 $ 114 $ 158 $ 158 $ 237 $ 341
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ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth selected financial data for, and as of the end of, each of the last five fiscal years. The information set forth below is not necessarily indicative of results of future operations, and should be read in conjunction with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and our Notes to Consolidated Financial Statements in Item 8 of this Form 10-K, to fully understand factors that may affect the comparability of the information presented below.
Selected Consolidated Statements of Comprehensive Income Data: (in millions, except per share data)
Year Ended December 31,
2020 2019 2018 2017 2016
Revenues $ 1,265 $ 1,232 $ 1,215 $ 1,165 $ 1,142
Operating income $ 824 $ 806 $ 767 $ 708 $ 687
Net income (1) $ 815 $ 612 $ 582 $ 457 $ 441
Earnings per share:
Basic $ 7.08 $ 5.17 $ 5.13 $ 4.56 $ 4.12
Diluted $ 7.07 $ 5.15 $ 4.75 $ 3.68 $ 3.42
———————
(1) Net income for 2020 includes the recognition of $204.2 million of previously unrecognized income tax benefits. Net income for 2018 includes a $52.0 million after-tax gain related to our divested security services business.
Consolidated Balance Sheet Data: (in millions)
As of December 31,
2020 2019 2018 2017 2016
Cash, cash equivalents and marketable securities (1) (2) $ 1,167 $ 1,218 $ 1,270 $ 2,415 $ 1,798
Total assets (1) (2) $ 1,767 $ 1,854 $ 1,915 $ 2,941 $ 2,335
Deferred revenues $ 1,063 $ 1,034 $ 1,018 $ 999 $ 976
Subordinated convertible debentures, including contingent interest derivative (2) $ — $ — $ — $ 628 $ 630
Long-term debt (1) $ 1,790 $ 1,788 $ 1,785 $ 1,783 $ 1,237
——————
(1) The increases in Cash, cash equivalents and marketable securities, Total assets and Long-term debt from 2016 to 2017 was due to the issuance of $550.0 million aggregate principal amount of 4.75% senior unsecured notes due 2027.
(2) The decreases in Cash, cash equivalents and marketable securities, Total assets and Subordinated convertible debentures, including contingent interest derivative from 2017 to 2018 was due to the settlement of our subordinated convertible debentures in 2018.
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