VeriSign (VRSN)

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, facilities, computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees, bad debt expense and allocations of indirect costs such as corporate overhead. All allocations of indirect costs are included in continuing operations.

A comparison of general and administrative expenses is presented below:

General and administrative expenses decreased $5.3 million primarily due to decreases in salary and employee benefits expenses, and legal expenses, partially offset by an increase in contractual professional services. Salary and employee benefits expenses, which include stock-based compensation expenses, decreased $5.8 million primarily due to a reduction in average headcount resulting from the 2008 restructuring plan. Legal expenses decreased $2.0 million primarily due to a reduction in litigation expenses. Contract and professional services expenses increased $3.2 million primarily due to an increase in external consulting services related to accounting, income taxes and internal audit.

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, facilities, computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees, bad debt expense and allocations of indirect costs such as corporate overheads. All allocations of indirect costs are included in continuing operations.

A comparison of general and administrative expenses is presented below:

2008 compared to 2007:    General and administrative expenses decreased $57.6 million primarily due to decreases in salary and employee benefits expenses, contract and professional services expenses, depreciation expense and legal expenses. Legal expenses decreased $31.2 million primarily due to lower litigation expenses and the reversal of certain previously accrued estimated litigation settlement costs in excess of actual final outcome, offset by legal consulting fees related to our plan to divest or wind down our non-core businesses during 2008. Salary and employee benefits expenses, which includes stock-based compensation expenses, decreased $27.4 million primarily due to severance charges related to a former chief executive officer recorded in the second quarter of 2007, $5.9 million in additional penalties recorded in the latter half of 2007 that resulted from late payments of federal and state payroll taxes, and a reduction in headcount relating to the 2008 restructuring plan. The decrease in salary and employee benefits expenses was partially offset by $4.9 million of stock-based compensation expenses related to the acceleration of vesting of stock-based awards for a former chief executive officer in the second quarter of 2008. Contract and professional services expenses decreased $8.9 million due to cost savings initiatives and reduction in external services as a result of our plan to divest or wind down our non-core businesses. Depreciation expense decreased $3.9 million primarily due to the sale of part of our Mountain View facility in the second quarter of 2008. Allocated expenses increased $14.3 million primarily due to proportionately higher headcount in the general and administrative function.

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2007 compared to 2006:    General and administrative expenses increased $30.0 million primarily due to increases in salary and employee benefits expenses and legal expenses, partially offset by a decrease in expenses related to the realignment of our business divisions. Salary and employee benefit expenses increased $33.6 million primarily due to severance charges related to a former chief executive officer and former chief financial officer. Stock-based compensation expenses increased due to an increase in the issuances of restricted stock to employees and a modification expense as a result of an amendment of our employee stock purchase plan to allow employees to increase their contribution withholding percentages in 2007. Legal expenses increased $14.9 million primarily due to litigation accruals, partially offset by a decrease in legal expenses, which were higher in 2006 associated with the stock option investigation. These increases were primarily offset by a decrease in allocated overhead expenses of $25.1 million primarily due to the redeployment of certain employees from the general and administrative function to certain other functions resulting from the 2007 restructuring plan realignment initiatives.

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, facilities, computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees and bad debt expense.

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A comparison of general and administrative expenses is presented below:

General and administrative expenses decreased $9.4 million and $24.3 million during the three and nine months ended September 30, 2008, respectively, as compared to the same periods last year. Salary and employee benefits expenses, which include stock-based compensation expenses, decreased $9.6 million and $21.1 million during the three and nine months ended September 30, 2008, respectively, as compared to the same periods last year. The decrease was primarily due to $4.0 million in additional penalties recorded in the third quarter of 2007 that resulted from late payments of federal and state payroll taxes, a reduction in compensation and bonus expenses as a result of a reduction in headcount relating to the 2008 restructuring plan to divest or wind down our non-core businesses and compensation and severance charges related to a former chief executive officer recorded in the second quarter of 2007. The decrease was partially offset by $4.9 million of stock-based compensation expenses related to the acceleration of vesting of stock-based awards for a former chief executive officer in the second quarter of 2008. Contract and professional services expenses decreased $2.4 million and $5.6 million during the three and nine months ended September 30, 2008, respectively, as compared to the same periods last year, primarily due to cost savings initiatives and reduction in external services as a result of our plan to divest or wind-down our non-core businesses. Legal expenses increased $1.6 million and decreased $6.0 million during the three and nine months ended September 30, 2008, respectively, as compared to the same periods last year. The increase in legal expenses during the three months ended September 30, 2008, as compared to the same period last year, was primarily due to an increase in litigation expenses and legal consulting fees related to our plan to divest or wind down our non-core businesses. The decrease in legal expenses during the nine months ended September 30, 2008, as compared to the same period last year, was primarily due to the reversal of certain previously accrued litigation expenses.

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, facilities, computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees and bad debt expense.

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A comparison of general and administrative expenses is presented below:

General and administrative expenses decreased $16.6 million and $2.5 million during the three and six months ended June 30, 2008, respectively, as compared to the same periods last year. Salary and employee benefits expenses, which include stock-based compensation expenses, decreased $12.8 million and $8.6 million during the three and six months ended June 30, 2008, respectively, as compared to the same periods last year. The decrease was primarily due to stock-based compensation and severance charges related to a former chief executive officer in the second quarter of 2007. The decrease was partially offset by an increase in the issuances of restricted stock to employees and greater participation pertaining to our employee stock purchase plan that allowed employees to increase their contribution withholding percentages beginning in the latter half of 2007, and $4.9 million of stock-based compensation expenses related to the acceleration of vesting of stock-based awards for our former chief executive officer in the second quarter of 2008. Legal expenses decreased $5.9 million and increased $2.2 million during the three and six months ended June 30, 2008, respectively, as compared to the same periods last year. The decrease in legal expenses during the second quarter of 2008, as compared to the same period last year, was primarily due to releases in the second quarter of 2008 of previously accrued estimated litigation costs as a result of negotiated settlements. The increase in legal expenses for the six months ended June 30, 2008, as compared to the same period last year, was primarily due to increased litigation expense and legal consulting fees related to the 2008 restructuring plan to divest or wind down our non-core businesses. Allocated overhead expenses increased $1.4 million and $2.8 million during the three and six months ended June 30, 2008, respectively, as compared to the same periods last year primarily due to proportionately higher headcount in the general and administrative function.

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, facilities, computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees and bad debt expense.

A comparison of general and administrative expenses is presented below:

General and administrative expenses increased approximately $22.4 million during the three months ended March 31, 2008, as compared to the same period last year. Salary and employee benefit costs increased approximately $11.3 million during the three months ended March 31, 2008, as compared to the same period last year. The increase was primarily due to payroll tax penalties and merit pay increases. We recorded approximately $8.1 million in penalties and interest related to late payment of payroll taxes on employee stock-based awards during fiscal 2004 through the first quarter of fiscal 2008. Stock-based compensation expense increased $1.7 million during the three months ended March 31, 2008, as compared to the same period last year, primarily due to an increase in the issuances of restricted stock to employees and greater participation pertaining to our employee stock purchase plan that allowed employees to increase their contribution withholding percentages beginning in the latter half of 2007. Legal expenses increased $8.2 million during the three months ended March 31, 2008, as compared to the same period last year, primarily due to increased litigation expense and legal consulting fees relating to the 2008 restructuring plan to divest our non-core businesses.

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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, and facility related expenses.

A comparison of general and administrative expenses is presented below:

2007 compared to 2006:    General and administrative expenses increased approximately $19.5 million primarily due to a recognizing a full year of expenses for the acquisitions of inCode, GeoTrust and m-Qube during the latter half of 2006, partially offset by a reduction of expenses due to the divestiture of our majority ownership interest in Jamba. Salary and benefit expenses increased $18.3 million primarily due to severance charges in connection with the separation agreements entered into with our former chief executive officer and former chief financial officer, merit pay increases, and additional expenses related to the acquisitions in late 2006. Stock-based compensation expense increased approximately $7.6 million primarily due to an increase in the issuances of restricted stock to employees and a modification expense pertaining to our employee stock purchase plan that allowed employees to increase their contribution withholding percentages in 2007. Legal expense increased by $14.6 million primarily due to $24.8 million in litigation accruals, partially offset by a decrease in legal expenses, which were higher in 2006 due to increased activity associated with the stock option investigation. These increases were primarily offset by a decrease in expenses related primarily to redeployed employees of $26.9 million in general and administrative due to the realignment of business divisions as a result of the 2007 restructuring plan.

2006 compared to 2005:    General and administrative expenses increased approximately $77.3 million primarily due to an increase of approximately $20.3 million in salary and employee benefit costs that was caused by a 39% increase in headcount and merit increases across all business units. Stock compensation expense increased $38.6 million as a result of the adoption of SFAS 123R. Expenses related to contract and professional services increased approximately $13.4 million primarily due to the legal and consulting services relating to the stock option investigation.

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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, facilities,

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computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees and bad debt expense.

A comparison of general and administrative expenses is presented below:

General and administrative expenses decreased approximately $9.9 million and $1.0 million for the three and nine months ended September 30, 2007, respectively, as compared to the same periods last year. Legal expenses decreased $5.7 million and $7.5 million for the three and nine months ended September 30, 2007, respectively, primarily as a result of reduced litigation expenses. Expenses related primarily to redeployed employees of $7.2 million and $22.7 million in general and administrative were allocated into the other expense categories during the three and nine months ended September 30, 2007, respectively, due to the realignment of business divisions as a result of the 2007 restructuring plan. Salary and employee benefit costs increased approximately $2.2 million and $25.7 million for the three and nine months ended September 30, 2007, respectively, as compared to the same periods last year. The increase during the nine months ended September 30, 2007, was primarily due to an increase in headcount resulting from our business acquisitions in 2006 and $21.4 million in stock-based compensation and severance charges in connection with the separation agreement entered into with our former Chief Executive Officer that was incurred in the second quarter of 2007 offset by a reduction in headcount due to the 2007 restructuring plan.

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, facilities, computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees and bad debt expense.

A comparison of general and administrative expenses is presented below:

General and administrative expenses increased approximately $17.8 million and $8.9 million for the three and six months ended June 30, 2007, respectively, as compared to the same periods last year. Salary and employee benefit costs increased approximately $20.8 million and $23.5 million for the three and six months ended June 30, 2007, respectively, as compared to the same periods last year primarily due to an increase in headcount resulting from our business acquisitions in

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2006, plan and $21.4 million in stock-based compensation and severance charges related to our former Chief Executive Officer offset by a reduction in headcount due to the 2007 restructuring. Expenses related primarily to redeployed employees of $6.8 million and $15.5 million in general and administrative were allocated into the other expense categories during the three and six months ended June 30, 2007, respectively, due to the realignment of business divisions as a result of the 2007 restructuring plan.

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, facilities, computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees and bad debt expense.

A comparison of general and administrative expenses is presented below:

General and administrative expenses decreased approximately $8.9 million for the three months ended March 31, 2007 as compared to the same period last year. Salary and employee benefit costs increased approximately $2.8 million during the three months ended March 31, 2007 due to an increase in headcount as a result of business acquisitions in 2006. Expenses related to redeployed employees of $8.7 million were included in general and administrative into the other expense categories during the three months ended March 31, 2007, primarily due to the realignment of business divisions as a result of the 2007 restructuring plan. Bad debt expense decreased approximately $1.9 million during the three months ended March 31, 2007, compared to the same period last year, primarily due to recoveries.

As a percentage of revenues, general and administrative expenses decreased for the three months ended March 31, 2007 compared to the same period last year primarily due to the reclassification of expenses allocated to other cost categories.

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, facilities, computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees and bad debt expense.

A comparison of general and administrative expenses for the three and nine months ended September 30, 2006 and 2005 is presented below:

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General and administrative expenses increased approximately $29.6 million and $63.7 million for the three and nine months ended September 30, 2006, respectively, as compared to the same periods last year. Salary and employee benefit costs increased approximately $22.7 million and $47.8 million during the three and nine months ended September 30, 2006, respectively, due to an increase in headcount as a result of acquisitions and internal growth and an increase in stock-based compensation expense due to the adoption of SFAS 123R. Rent expense increased approximately $2.7 million and $8.5 million for the three and nine months ended September 30, 2006, primarily attributable to leases from new facilities related to our business acquisitions. Equipment and software related expenses decreased approximately $0.2 million and increased $2.3 million during the three and nine months ended September 30, 2006, respectively, primarily due to increased hardware maintenance costs and an increase in depreciation expense. During the second quarter, withholding and other non-income tax expenses decreased approximately $5.6 million due to the release of a tax reserve upon completion of a voluntary compliance initiative with the Internal Revenue Service for payments made to non-US vendors.

As a percentage of revenues, general and administrative expenses increased for the three and nine months ended September 30, 2006 compared to the same periods last year primarily due to the increase in headcount, stock-based compensation expenses and a decrease in overall revenue.

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, facilities, computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees and bad debt expense.

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A comparison of general and administrative expenses for the three and six months ended June 30, 2006 and 2005 is presented below:

General and administrative expenses increased approximately $8.4 million and $34.2 million for the three and six months ended June 30, 2006, respectively, as compared to the same periods last year. Salary and employee benefit costs increased approximately $7.3 million and $25.1 million for the three and six months ended June 30, 2006, respectively, as compared to the same periods last year, primarily as a result of an increase in headcount due to our business acquisitions and internal growth and an increase in stock-based compensation expense due to the adoption of SFAS 123R. Rent expense increased approximately $2.5 million and $5.8 million for the three and six months ended June 30, 2006, respectively, as compared to the same periods last year, primarily attributable to leases on new facilities related to our business acquisitions. Outside legal expenses increased approximately $3.2 million and $3.4 million for the three and six months ended June 30, 2006, respectively, as compared to the same periods last year, primarily due to increased litigation costs. Other expenses, which include consulting, internet and security services, payroll, accounting, audit and tax services, increased approximately $1.0 million and $4.2 million for the three and six months ended June 30, 2006, respectively, as compared to the same periods last year, primarily due to an increase use in professional consultants and expenses associated with the independent review of historical stock option practices described in the Explanatory Note and Note 2 of our Notes to Condensed Consolidated Financial Statements contained elsewhere in this report. Equipment and software related expenses increased approximately $1.3 million and $2.5 million for the three and six months ended June 30, 2006, respectively, as compared to the same periods last year, primarily due to increased hardware maintenance costs and an increase in depreciation and amortization expense related to hardware and software placed in service during the third and fourth quarters of 2005. Withholding and other non-income tax expenses decreased approximately $5.6 million and $5.7 million for the three and six months ended June 30, 2006, respectively, as compared to the same periods last year, primarily due to the release of a tax reserve upon completion of a voluntary compliance initiative with the Internal Revenue Service for payments made to non-US vendors.

As a percentage of revenues, general and administrative expenses increased for the three and six months ended June 30, 2006 compared to the same periods last year primarily as a result of an increase in headcount due to our business acquisitions, an increase in stock-based compensation expenses and a decline in revenues.

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, facilities, computer and communications equipment, management information systems, support services, professional services fees, certain tax and license fees and bad debt expense.

A comparison of general and administrative expenses and employee headcount for the years ended December 31, 2006, 2005 and 2004 is presented below:

2006 compared to 2005:    General and administrative expenses increased approximately $76.7 million primarily due to an increase of approximately $20.3 million in salary and employee benefit costs resulting from a 39% increase in headcount and salary increases across all business units. Stock compensation expense increased $38.6 million as a result of the adoption of SFAS 123R. Expenses related to contract and professional services increased approximately $13.4 million primarily due to the legal and consulting services relating to the stock option investigation.

2005 compared to 2004:    General and administrative expenses decreased approximately $13.8 million primarily due to a $45.6 million decrease in stock compensation expense that resulted from variable-plan accounting for certain stock option grants. Salary and employee benefit costs increased approximately $17.0 million primarily due a 24% increase in headcount. Equipment and software related expenses increased approximately $7.4 million, primarily due to an increase in hardware maintenance costs, software licenses and depreciation expense. Legal costs increased approximately $3.1 million primarily due to litigation settlements during the year. Expenses related to contract and professional services increased approximately $3.1 million primarily due to services related to audit, tax and Sarbanes-Oxley compliance.

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