Home Shopping Network 2008 Annual Report Download - page 60

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HSN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
57
redeem our stock, make investments, sell assets, incur liens, enter into agreements restricting our subsidiaries’
ability to pay dividends, enter into transactions with affiliates and consolidate, merge or sell all or substantially all of
our assets.
Aggregate contractual maturities of long-term debt are as follows (in thousands):
Years ending December 31,
2009 15,000$
2010 22,500
2011 30,000
2012 30,000
2013 72,500
Thereafter 240,000
410,000$
NOTE 12—STOCK-BASED AWARDS
Effective January 1, 2006, HSNi adopted SFAS No. 123R using the modified prospective transition method
and has applied the classification provisions of Staff Accounting Bulletin No. 107 regarding the SEC's interpretation
of SFAS No. 123R and the valuation of stock-based payments for public companies in its adoption of SFAS 123R.
The adoption of SFAS No. 123R did not impact the amount of stock-based compensation expense recorded in the
accompanying consolidated statements of operations for the year ended December 31, 2006, since HSNi had
previously adopted the expense recognition provisions of SFAS No. 123, “Accounting for Stock-Based
Compensation.”
Non-cash compensation expense is included in the following line items in the accompanying consolidated
statements of operations (in thousands):
Cost of sales $ 1,412 $ 937
$ 755
Selling and marketing 1,968 1,025
1,117
General and administrative 16,774 10,189
9,867
Production and programming 132 9
7
Non-cash stock-based compensation expense before
income taxes 20,286 12,160
11,746
Income tax benefit (7,709) (4,434) (4,017)
Non-cash stock-based compensation expense after
income taxes $ 12,577 $ 7,726
$ 7,729
Year Ended
December 31,
2008 2007 2006
As of December 31, 2008, there was approximately $26.7 million of unrecognized compensation cost, net
of estimated forfeitures, related to all equity-based awards, which is currently expected to be recognized over a
weighted average period of approximately 2.9 years.
2008 Stock and Annual Incentive Plan
The 2008 Stock and Annual Incentive Plan (the “Plan”) became effective upon the date of the spin-off and
authorizes the issuance of 5 million shares of HSNi common stock for new awards granted by HSNi. As of
December 31, 2008, there were 2.8 million shares of common stock available for grants under the Plan. The
purpose of the Plan is to assist HSNi in attracting, retaining and motivating officers, employees, directors and
consultants, and to provide HSNi with the ability to provide incentives more directly linked to the profitability of our
business and increases in stockholder value.