Home Shopping Network 2009 Annual Report Download

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009
Commission File No. 001-34061
HSN, INC.
(Exact name of registrant as specified in its charter)
Delaware 26-2590893
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
1 HSN Drive, St. Petersburg, Florida 33729
(Address of principal executive offices) (Zip Code)
(727) 872-1000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of exchange on which registered
Common Stock, par value $0.01
Series A Junior Participating
Preferred Stock Purchase Rights
The NASDAQ Stock Market LLC
(NASDAQ Global Select Market)
The NASDAQ Stock Market LLC
(NASDAQ Global Select Market)
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes No È
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. Yes No È
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 ÈNo
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, an Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter
period that the registration was required to submit and post such files). Yes No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not
be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III
of this Form 10-K or any amendment to this Form 10-K. È
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company as defined in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer È
Non-accelerated filer Smaller reporting company
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No È
The aggregate market value of the registrant’s outstanding common stock held by non-affiliates as of June 30, 2009 (the registrant’s
most recently completed second fiscal quarter), was $594,104,269 (based on a closing price of $10.57 per share for the registrant’s
common stock on the NASDAQ Global Select Market).
As of March 1, 2010, the registrant had 56,912,318 shares of common stock, $0.01 par value per share, outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement for the 2010 Annual Meeting of Stockholders are incorporated by reference into Items 10,
11, 12, 13 and 14 of Part III of this Form 10-K.

Table of contents

  • Page 1
    ....) 1 HSN Drive, St. Petersburg, Florida (Address of principal executive offices) 33729 (Zip Code) (727) 872-1000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of exchange on which registered Common Stock...

  • Page 2
    ... ...SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS ...CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE ...PRINCIPAL ACCOUNTANT FEES AND SERVICES ...PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES ...79 78 78 78 78 78...

  • Page 3
    ... with pay television operators, vendors, manufacturers and other third parties; technological or regulatory changes; changes in senior management; our ability to offer new or alternative products and services in a cost effective manner and consumer acceptance of these products and services; and...

  • Page 4
    ...internet sites and operates 23 retail and outlet stores. HSNi was incorporated in Delaware in May 2008. Our principal offices are located at 1 HSN Drive, St. Petersburg, Florida 33729 and our main telephone number is 727-872-1000. History HSNi's predecessor company began broadcasting television home...

  • Page 5
    ... for Cornerstone. HSN Overview HSN includes the HSN television network and its related website, HSN.com. The HSN television network broadcasts live, customer interactive television home shopping programming 24 hours a day, seven days a week. This programming is intended to promote sales and customer...

  • Page 6
    ..., value-added video of product demonstrations, live streaming video of the HSN television network, customer-generated product reviews and additional information about HSN show hosts and guest personalities. Cornerstone Cornerstone consists of a number of branded catalogs and related websites, the...

  • Page 7
    ...centers, as well as a feature that allows customers to browse the related catalog online. Supply HSN and Cornerstone purchase products by way of short- and long-term contracts and purchase orders, including products made to their respective specifications, as well as name brand merchandise and lines...

  • Page 8
    ...by brand, business or product. Merchandise may be purchased online or ordered using toll free phone numbers through live sales and service agents. HSN also offers the convenience of an automated attendant system and, in limited markets, remote control ordering capabilities through pay television set...

  • Page 9
    ..., sale and promotion of merchandise and the operation of retail stores and warehouse facilities, as well as laws and regulations applicable to the internet and businesses engaged in online commerce, such as those regulating the sending of unsolicited, commercial electronic mail. Unfavorable...

  • Page 10
    ... internet retailers), ranging from large department stores to specialty shops, electronic retailers, direct marketing retailers, mail order and catalog companies, infomercial retailers, wholesale clubs and discount retailers. In addition, the HSN television network competes for access to customers...

  • Page 11
    ... make available free of charge, on or through the website, our annual, quarterly and current reports, and any amendments to those reports, as soon as reasonably practicable after electronically filing such reports with the SEC. Our Code of Business Conduct and Ethics, which applies to all employees...

  • Page 12
    ... to identify new vendors and manufacturers, maintain relationships with a significant number of existing vendors and manufacturers and/or access quality merchandise in a timely and efficient manner could cause our businesses to miss customer delivery dates or delay scheduled promotions, which would...

  • Page 13
    ... existing customers or consumers generally or may not be cost-effective. In addition, we believe that costs associated with the production and distribution of HSN television programming, paper and printing costs for Cornerstone catalogs and costs associated with online marketing, including search...

  • Page 14
    ... cost-effective manner to these changes it could result in lost sales. Failure to effectively manage our Flexpay program could result in unplanned losses. HSN offers Flexpay, pursuant to which customers may pay for certain merchandise in two to six interestfree, monthly credit or debit card payments...

  • Page 15
    ..., the importation, sale and promotion of merchandise and the operation of retail stores and warehouse facilities, as well as laws and regulations applicable to the internet and businesses engaged in online commerce, such as those regulating the sending of unsolicited, commercial electronic mail. Our...

  • Page 16
    ... websites, information and related systems, call centers and fulfillment facilities. We may experience occasional system interruptions that make some or all systems or data unavailable or prevent our businesses from efficiently providing services or fulfilling orders. We also rely on affiliate...

  • Page 17
    ...and domain names, copyrights, trade secrets and similar intellectual property (as applicable), as critical to our success. Our businesses also rely heavily upon software codes, informational databases and other components that make up their products and services. From time to time, we are subject to...

  • Page 18
    ... Not applicable. ITEM 2. PROPERTIES HSNi owns its corporate headquarters in St. Petersburg, Florida, which consist of approximately 600,000 square feet of office space and include executive offices, television studios, showrooms, broadcast facilities and administrative offices for HSN. HSN leases...

  • Page 19
    ... relate to claims involving property, personal injury, contract, intellectual property, sales tax and other claims. At March 4, 2010, we are not a party to any legal proceedings that are reasonably expected to have a material adverse effect on our business, results of operations, financial condition...

  • Page 20
    ... SECURITIES Market Information Effective August 12, 2008, our shares of common stock began trading on The NASDAQ Global Select Market under the symbol HSNI. Prior to August 12, 2008, our common stock was not publicly traded. The table below sets forth the high and low per share sales prices of...

  • Page 21
    ... and the Russell 2000 Index from August 12, 2008, the first day of trading of the Company's common stock after the spin-off through December 31, 2009, the last day of our fiscal year. COMPARISON CUMULATIVE TOTAL RETURN AMONG HSN, INC., S&P 500 RETAILING INDEX AND RUSSELL 2000 INDEX 200 150 100 50...

  • Page 22
    ... of HSNi would have been had HSNi been a stand-alone company during the periods presented prior to the spin-off. For information about the shares used in computing earnings per share, see Note 10 of Notes to Consolidated Financial Statements. 2009 2008 Year Ended December 31, 2007 2006 2005...

  • Page 23
    ... the spin-off, did not acquire or incur any material assets or liabilities. HSN primarily consists of the HSN television network and HSN.com, and Cornerstone includes the Cornerstone Brands portfolio of leading print catalogs, related websites and a limited number of retail and outlet stores. The...

  • Page 24
    ... of Revenue HSN revenue includes merchandise sales originating from the live television broadcast of its programming 24 hours per day, seven days a week, the HSN.com website and through mobile handheld devices. HSN also sells merchandise through its "Autoship" program under which customers receive...

  • Page 25
    ... a result of changes in merchandise offerings, sales of key items at lower price points and product mix. HSN manages its product mix to provide a balance between satisfying existing customer demand, generating interest from potential viewers and customers, providing new merchandise or values to its...

  • Page 26
    ... and apparel markets. As a result, average price points and the number of units shipped decreased 3% and 11%, respectively. Cost of Sales and Gross Profit Cost of sales consists primarily of the cost of products sold, shipping and handling costs and compensation and other employee-related costs...

  • Page 27
    ... and other employee-related costs (including stock-based compensation) for personnel engaged in customer service, sales and merchandising functions and on-air distribution costs. Advertising and promotional expenditures primarily include catalog production and distribution costs and online marketing...

  • Page 28
    ... extended payment program. Flexpay, which is offered exclusively through HSN, allows customers to pay for merchandise in interest free monthly payments over a two to six month period. Production and Programming Expense Year Ended December 31, % % Change 2008 Change (Dollars in thousands) 2009 2007...

  • Page 29
    ... expenditures were primarily at HSN in 2009 and were for investments in equipment relating to high-definition television programming, campus renovations and other information technology and broadcast-related investments. The capital expenditures in 2008 were also primarily at HSN and were for campus...

  • Page 30
    ...decrease in sales and gross margins in a highly promotional retail environment, partially offset by reduced costs associated with a 19% planned reduction in catalog circulation. Operating Income (Loss) Year Ended December 31, % % Change 2008 Change (Dollars in thousands) 2009 2007 HSN ...$157,233...

  • Page 31
    ... relates to 2007 income tax returns filed in 2008. Income from discontinued operations, net of tax, in 2007 primarily includes the income of HSE. Additionally, in 2007 HSNi recognized an after-tax gain on the sale of HSE of $30.6 million. Liquidity and Capital Resources As of December 31, 2009...

  • Page 32
    ... were primarily at HSN and were for campus renovations, information technology and broadcast-related expenditures. Net cash used in financing activities attributable to continuing operations in 2009 was $69.7 million related to the $50.0 million repayment of long-term debt under the term loan which...

  • Page 33
    ... bonds primarily consist of custom bonds which relate to the import of merchandise into the United States. At December 31, 2009, we had $0.5 million recorded for uncertain tax positions under current accounting guidance. We are not able to reasonably estimate the timing of payments, or the amount by...

  • Page 34
    ... measure for those evaluating companies in the retail industry. Adjusted EBITDA measures the amount of income generated each period that could be used to service debt, pay taxes and fund capital expenditures. Adjusted EBITDA has certain limitations in that it does not take into account the impact to...

  • Page 35
    ... been acquired in a business combination and the estimated fair value of the reporting unit was the purchase price paid. The fair value of the reporting unit is determined by using a combination of a discounted cash flow analysis and an equity analysis based on the trading value of its common stock...

  • Page 36
    ... reimbursed shipping and handling costs) are provided based upon past experience. Actual levels of product returns may vary from these estimates. HSNi's estimated return rates were 17.8%, 18.4% and 18.4% in 2009, 2008 and 2007, respectively. Allowance for Doubtful Accounts HSNi makes judgments...

  • Page 37
    ...date using the Black-Scholes option pricing model. This model incorporates various assumptions, including expected volatility and expected term. Expected stock price volatilities are estimated based on the historical and implied volatilities of comparable publicly-traded companies. The expected term...

  • Page 38
    ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Consolidated Financial Statements Page Report of Independent Registered Certified Public Accounting Firm ...Consolidated Statements of Operations for the years ended December 31, 2009, 2008 and 2007 ...Consolidated Balance Sheets at ...

  • Page 39
    ... December 31, 2009 and 2008, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when...

  • Page 40
    HSN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Years Ended December 31, 2008 2009 2007 Net sales ...Cost of sales ...Gross profit ...Operating expenses: Selling and marketing ...General and administrative ...Production and programming ......

  • Page 41
    HSN, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) December 31, 2009 2008 ASSETS Current assets: Cash and cash equivalents ...Accounts receivable, net of allowance of $11,608 and $10,026, respectively ...Inventories ...Deferred income taxes ...Prepaid expenses ...

  • Page 42
    ... accounted for as a liability ...Capitalization as a result of the spin-off, net of extinguishment of IAC receivables ...Issuance of common stock at spin-off ...Board of Directors deferred compensation ...Issuance of common stock upon exercise of stock options ...Balance as of December 31, 2008...

  • Page 43
    ... of long-term debt, net of issuance costs ...Repayments of long-term debt ...Borrowings under revolving credit facility ...Repayments under revolving credit facility ...Distribution to IAC in connection with the spin-off ...Excess tax benefits from stock-based awards ...Other, net ...Net cash (used...

  • Page 44
    ...'s television home shopping business and related internet commerce is referred to herein as "HSN" and all catalog operations, including related internet commerce and retail stores, are collectively referred to herein as "Cornerstone." HSN offerings primarily consist of jewelry, apparel & accessories...

  • Page 45
    ... past experience. HSNi believes that actual returns of product sales have not materially varied from estimates in any of the periods presented. HSNi's estimated return rates were 17.8%, 18.4% and 18.4% in 2009, 2008 and 2007, respectively. Sales taxes collected are not included in revenue. Shipping...

  • Page 46
    ... time HSN collects the first payment, sales tax and all shipping and handling fees. Subsequent collections are due from customers in 30-day increments, payable automatically upon authorization of the customer's method of payment. HSN accepts most credit, and select debit cards. HSN offers Flexpay...

  • Page 47
    ... accompanying consolidated balance sheets. Advertising Advertising costs principally represent offline costs, including catalog production and distribution costs, and online advertising costs. Advertising costs are expensed in the period incurred, except for Cornerstone's direct costs of producing...

  • Page 48
    ... transaction by which IAC sold its partnership interests in VUE. HSNi used the non-cash advertising for television advertising on various NBC Universal network and cable channels through the third quarter of 2008 without any cash cost. Income Taxes HSNi accounts for income taxes under the liability...

  • Page 49
    ... of cost or market adjustment for inventory; sales returns and other revenue allowances; the allowance for doubtful accounts; the recoverability of long-lived assets; the impairment of goodwill and intangible assets; the determination of deferred income taxes, including related valuation allowances...

  • Page 50
    ... beneficiary of the VIE. The guidance is effective for annual reporting periods beginning after November 15, 2009, and therefore, will be applicable to HSNi in the first quarter of fiscal year 2010. HSNi does not expect the adoption of this new standard to have a material impact on its consolidated...

  • Page 51
    ...particularly in the home and apparel categories (which are Cornerstone's primary markets), the negative impact of this environment on Cornerstone's performance and the related reduction in market valuations for retailers. HSNi conducted its annual test for impairment as of October 1, 2008 during the...

  • Page 52
    ... relate principally to trade names and trademarks acquired in various acquisitions. When definite-lived intangible assets are sold or expire, the cost of the asset and the related accumulated amortization are eliminated and any gain or loss is recognized at such time. At December 31, 2009 and 2008...

  • Page 53
    ... tax deductions are realized. NOTE 4-PROPERTY AND EQUIPMENT The balance of property and equipment, net, is as follows (in thousands): December 31, 2009 2008 Capitalized software ...Computer and broadcast equipment ...Buildings and leasehold improvements ...Furniture and other equipment ...Projects...

  • Page 54
    .... NOTES TO CONSOLIDATED FINANCIAL STATEMENTS products or services offered or the target market. HSNi has two operating segments, HSN and Cornerstone. Entities included in discontinued operations, as described in Note 7, are excluded from the schedules below. The accounting policies of the segments...

  • Page 55
    ...34,288 14,426 48,714 HSNi does not report revenue from external customers for each product or each group of similar products as it is impracticable to do so. HSNi maintains operations principally in the United States with no long-lived assets and insignificant net sales in all other countries. NOTE...

  • Page 56
    ... 31, 2009, 2008 and 2007, respectively. NOTE 10-EARNINGS PER SHARE We compute basic earnings per share using the weighted average number of common shares outstanding for the period. We compute diluted earnings per share using the treasury stock method or as if converted method, as applicable, which...

  • Page 57
    HSN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Basic Earnings Per Share For the year ended December 31, 2009, basic earnings per share was computed using the number of weighted average shares of common stock outstanding for the period. For the year ended December 31, 2008, basic earnings per ...

  • Page 58
    ..., except per share data): 2009 Year Ended December 31, 2008 2007 Net income (loss): Income (loss) from continuing operations ...(Loss) income from discontinued operations ...Net income (loss) ...Weighted average number of shares outstanding: Basic ...Dilutive effect of stock-based compensation...

  • Page 59
    .... The annual fee to maintain the revolving credit facility is 50 basis points on the revolving credit facility portion of the credit agreement. As of December 31, 2009, there was $0 outstanding on the revolving credit facility and $100 million outstanding related to the term loan. On July 28, 2008...

  • Page 60
    ... Annual Incentive Plan The Second Amended and Restated 2008 Stock and Annual Incentive Plan (the "Plan") authorizes the issuance of 8.0 million shares of HSNi common stock for new awards granted by HSNi. As of December 31, 2009, there were approximately 4.2 million shares of common stock available...

  • Page 61
    ... to each award and the stock option exercise prices were based on the relative market capitalization of IAC and each of the Spincos following the spin-off. The conversion was accounted for as a modification under the provisions of accounting guidance related to share-based payments, and resulted in...

  • Page 62
    ... current market price per share of HSNi common stock and the exercise price. The exercise price for awards granted under the Plan is required to be priced at, or above, the fair market value of HSNi's stock at the date of grant. For stock options granted prior to the spin-off, the exercise price was...

  • Page 63
    ... expected volatility and expected term. For purposes of this model, no dividends have been assumed. Expected stock price volatilities are estimated based on the historical and implied volatilities of comparable publicly-traded companies. The risk-free interest rates are based on U.S. Treasury...

  • Page 64
    ... price of Cornerstone Brands. The preferred interest accretes value at a 15% annual rate. Upon exercise of the put or call the consideration is payable in HSNi shares or cash or a combination thereof at HSNi's option. As of December 31, 2009, these awards were significantly out of the money...

  • Page 65
    ... tax liabilities related to the goodwill and intangible asset impairments recognized in 2008. These deferred tax liabilities for both HSN and Cornerstone were recorded upon the acquisition of certain business operations and interests in prior years in accordance with the prescribed accounting...

  • Page 66
    ...thousands). The valuation allowance is related to items for which it is more likely than not that the tax benefit will not be realized. December 31, 2009 2008 Deferred tax assets: Provision for accrued expenses ...Inventories ...Foreign investment ...Stock-based compensation ...Net operating losses...

  • Page 67
    ... entered into a Tax Sharing Agreement with IAC in which, among other things, each of the four publicly-traded companies resulting from the spin-off (the "Spinco" or "Spincos") has indemnified IAC and the other Spincos for any taxes resulting from the spin-off of such Spinco (and any related interest...

  • Page 68
    ... probability and estimated extent of potential loss. See Note 13 for discussion related to income tax contingencies. HSNi leases satellite transponders, computers, warehouse and office space, equipment and services used in connection with its operations under various operating leases, many of which...

  • Page 69
    ... instruments at December 31, 2009 or 2008. NOTE 16-RELATED PARTY TRANSACTIONS Relationship Between IAC and HSNi Prior to the Spin-off HSNi's expenses prior to the spin-off include allocations from IAC of costs associated with IAC's accounting, treasury, legal, tax, corporate support, human resources...

  • Page 70
    ... their dependents and beneficiaries), as well as the provision of health and welfare benefits to employees of HSNi (the costs of which will be borne by HSNi) pursuant to IAC's employee benefit plans through the end of 2008; and a Transition Services Agreement that governs the provision of transition...

  • Page 71
    HSN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS IAC, Liberty and affiliates of Liberty that held shares of IAC common stock and/or Class B common stock at the time such Spinco Agreement was entered into, and (ii) as required by the Spinco Agreement, entered into a registration rights agreement ...

  • Page 72
    ... of which IAC and HSNi do not make certain determinations with respect to the transferee will be prohibited, unless such transfers represent no more than one-third of HSNi Common Stock received by the Liberty Parties in the spin-off. Competing Offers During the period when Liberty continues to...

  • Page 73
    ...three years. In accordance with the terms of the spin-off, the ARO Shares and the contingent value right were transferred to IAC in 2008. This transfer totaled approximately $217.2 million, of which $190.1 million related to the ARO Shares and $27.1 million related to the contingent value right, and...

  • Page 74
    ... offer for 15% or more of HSNi's common stock. If the rights become exercisable, each right will permit its holder, other than the "acquiring person," to purchase from us shares of common stock at a 50% discount to the then prevailing market price. As a result, the rights will cause substantial...

  • Page 75
    ...the release of the related deferred tax liabilities in the HSN and Cornerstone segments. These adjustments increased diluted loss per share by $38.60. The fourth quarter of 2008 also includes a $5.0 million accrual adjustment for liabilities associated with on-air distribution costs. This adjustment...

  • Page 76
    ... to Other Accounts Deductions (In thousands) Balance at End of Period Description 2009 Allowance for doubtful accounts ...Sales returns accrual ...Deferred tax valuation allowance ...Other reserves ...2008 Allowance for doubtful accounts ...Sales returns accrual ...Deferred tax valuation allowance...

  • Page 77
    ...we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and to ensure that information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer...

  • Page 78
    ...our internal control over financial reporting in order to improve its effectiveness. In the course of these evaluations, we modify and refine our internal processes as conditions warrant. In addition, we have been evaluating, designing and enhancing controls related to processes that previously were...

  • Page 79
    ... accompanying management's annual report on internal control over financial reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting...

  • Page 80
    ITEM 9B. Other Information None. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Incorporated by reference from our Proxy Statement for our 2010 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2009. ITEM ...

  • Page 81
    ... Item 8. 2. Financial Statement Schedules. Financial statement schedules filed as part of this Form 10-K are listed under Item 8. All other schedules have been omitted because they are either not applicable or not required under the instructions contained in Regulation S-X because the information...

  • Page 82
    ... 31, 2008* HSN, Inc. Amended and Restated 2008 Stock and Annual Incentive Plan* Amended and Restated Deferred Compensation Plan for Non-Employee Directors* Credit Agreement among HSN, Inc., as Borrower, Certain Subsidiaries of the Borrower, as Guarantors, The Lenders Party thereto, Bank of America...

  • Page 83
    ...Agreement (for Non-Employee Directors)* HSN, Inc. Second Amended and Restated 2008 Stock and Annual Incentive Plan* Named Executive Officer and EVP Severance Plan* Executive Severance Plan* Computation of Ratio of Earnings to Fixed Charges Code of Ethics and Business Conduct Subsidiaries of HSN, Inc...

  • Page 84
    ...Annual Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on March 4, 2010. /S/ MINDY GROSSMAN Mindy Grossman Chief Executive Officer and Director (Principal Executive Officer) Chief Financial Officer (Principal Financial and Accounting...

  • Page 85
    ... INDEX Exhibit No. Description of Document 10.25 12.1 21.1 31.1 31.2 32.1 32.2 Executive Severance Plan* Computation of Ratio of Earnings to Fixed Charges Subsidiaries of HSN, Inc. Chief Executive Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted...

  • Page 86
    Exhibit 12.1 HSN, Inc. Computation of Ratio of Earnings to Fixed Charges 2009 Year Ended December 31, 2008 2007 2006 (unaudited) (In thousands, except ratios) 2005 Income (loss) from continuing operations before income taxes ...Fixed charges: Interest expense (a) ...Estimated interest portion of ...

  • Page 87
    ...Brands, Inc...Cornerstone Consolidated Services Group, Inc...Cornerstone Services, Inc...Exception Management Services LP ...Garnet Hill, Inc...H.O.T. Networks Holdings (Delaware) LLC ...Home Shopping Network En Espanol, L.P...Home Shopping Network En Espanol, L.L.C...HSN Catalog Services, Inc...HSN...

  • Page 88
    ...'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 controls over financial reporting. Date: March 4, 2010 By: /s/ MINDY GROSSMAN...

  • Page 89
    ...'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 controls over financial reporting. Date: March 4, 2010 By: /s/ JUDY A. SCHMELING...

  • Page 90
    ... 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 HSN, Inc. Date: March 4, 2010 By: /s/ MINDY GROSSMAN Mindy Grossman Chief Executive Officer

  • Page 91
    ...: (1) the Annual Report of HSN, Inc. on Form 10-K for the fiscal year ended December 31, 2009 of HSN, Inc. (the "Report"), which this ...information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HSN, Inc. Date: March 4, 2010...

  • Page 92