Home Shopping Network 2008 Annual Report Download - page 56

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HSN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
53
2008 2007 2006
Net sales:
HSN $ 1,956,871 $ 1,892,582 $ 1,884,650
Cornerstone 866,722 1,015,660 993,304
Total $ 2,823,593 $ 2,908,242 $ 2,877,954
Identifiable assets:
HSN $ 940,515 $ 3,205,428 $ 3,195,255
Cornerstone 210,949 1,011,923 981,976
Discontinued operations 993 3,280 280,936
Total $ 1,152,457 $ 4,220,631 $ 4,458,167
Capital expenditures:
HSN $ 33,367 $ 34,288 $ 23,415
Cornerstone 6,295 14,426 12,570
Total
$ 39,662
$ 48,714
$ 35,985
Year Ended December 31,
(In thousands)
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 7—DISCONTINUED OPERATIONS
On June 19, 2007, HSNi sold Home Shopping Europe GMbH & Co. KG, and its affiliated station HSE24
("HSE"). Accordingly, HSE is presented as a discontinued operation in the statement of operations. HSNi sold HSE
for approximately $216.5 million, which resulted in a pre-tax gain of $45.7 million and an after-tax gain of
$30.6 million. The pre-tax gain included $22.8 million of foreign currency translation gains that were recognized
into earnings at the time of the sale.
The net sales and net (loss) income for the aforementioned discontinued operation for the applicable
periods are as follows (in thousands):
2008
2007
2006
Net sales $ - $ 192,701 $ 387,281
(Loss) income before income taxes
$ (749) $ 28,786 $ (9,511)
Income tax (expense) benefit (2,661) 213 (1,204)
(Loss) income before income taxes $ (3,410) $ 28,999 $ (10,715)
Year Ended December 31,
NOTE 8—COMPREHENSIVE (LOSS) INCOME
Comprehensive (loss) income is comprised of (in thousands):