Home Shopping Network 2008 Annual Report Download - page 57

HSN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
54
2008
2007
2006
Net (loss) income
$ (2,390,888)
$ 164,804
$ 122,817
Foreign currency translation (loss) gain
(1,416)
(35,045)
16,441
Net gains on derivative contracts
-
(2,355)
4,319
Other comprehensive (loss) income
(1,416)
(37,400)
20,760
Comprehensive (loss) income
(2,392,304)$ 127,404$ 143,577$
Year Ended December 31,
Accumulated other comprehensive income at December 31, 2008 and December 31, 2007 is solely related
to foreign currency translation and is recorded net of tax.
NOTE 9—RETIREMENT AND SAVINGS PLAN
Through December 31, 2008, our employees continued to be eligible to participate in IAC's retirement and
savings plan in the U.S. that qualifies under Section 401(k) of the Internal Revenue Code. Effective December 31,
2008, IAC transferred the assets of our participating employees into the HSN, Inc. Retirement Savings Plan that is
intended to qualify under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up
to 50% of their pretax salary, up to the statutory limits. Through December 31, 2008, we contributed fifty cents for
each dollar a participant contributes in this plan, with a maximum contribution of 3% of a participant's earnings. Our
matching contribution was $4.2 million, $4.4 million and $4.1 million for the years ended December 31, 2008, 2007
and 2006, respectively.
NOTE 10—EARNINGS PER SHARE
We compute earnings per share in accordance with SFAS No. 128, "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
includes the weighted average number of common shares outstanding for the period plus the potential dilution that
could occur if various equity awards to issue common stock were exercised or restricted equity awards were vested
resulting in the issuance of common stock that could share in our earnings.
Basic Earnings Per Share
For the year ended December 31, 2008, basic earnings per share was computed using the number of shares
of common stock outstanding immediately following the spin-off, as if such shares were outstanding for the entire
period prior to the spin-off, plus the weighted average number of such shares outstanding following the spin-off date
through December 31, 2008.
For the years ended December 31, 2007 and 2006, basic earnings per share was computed using the number
of shares of common stock outstanding immediately following the spin-off, as if such shares were outstanding for
the entire period.
Diluted Earnings Per Share
For the year ended December 31, 2008, diluted earnings per share was computed using (i) the number of
shares of common stock outstanding immediately following the spin-off, (ii) the weighted average number of such
shares outstanding following the spin-off date through December 31, 2008, and (iii) if dilutive, the incremental
common stock that we would issue upon the assumed exercise of stock options and the vesting of restricted stock
units using the treasury stock method.
For the years ended December 31, 2007 and 2006, diluted earnings per share was calculated using (i) the
number of shares of common stock outstanding immediately following the spin-off, and (ii) if dilutive, the
incremental common stock that we would issue upon exercise of stock options and the vesting of restricted stock
units using the treasury stock method.