Home Shopping Network 2008 Annual Report Download - page 62

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HSN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
59
fair value measured at the spin-off date as a result of the modifications discussed previously. The RSUs are
generally subject to service-based vesting over a three to five year term. HSNi’s Board of Directors were granted
approximately 136,000 RSUs during the year ended December 31, 2008 which have graded vesting over a two year
period.
A summary of the status of the nonvested RSUs, including the Adjusted Awards and awards granted under
the Plan, as of December 31, 2008 and changes during the year ended December 31, 2008 is as follows:
Nonvested at 8/20/08 1,090,304 $ 22.24
Granted
433,065
5.53
Vested - -
Forfeited (88,317) 23.89
Nonvested at 12/31/08 (1) 1,435,052 17.10
(1) Approximately 337,000 of the nonvested awards outstanding as of December 31, 2008 were held by employees of the other
Spincos.
RSUs
Number of
shares
Weighted
Average Grant
Date Fair Value
A portion of the RSUs granted by IAC prior to the spin-off accelerated at the date of the spin-off and were
settled in HSNi common stock. In connection with these accelerated RSUs, approximately 240,000 shares of HSNi
common stock were issued at the date of the spin-off to employees of all five Spincos which had a value of
approximately $3.0 million.
As of December 31, 2008, there was approximately $13.9 million of unrecognized compensation cost, net
of estimated forfeitures, related to RSUs, which is currently expected to be recognized over a weighted average
period of approximately 2.6 years.
Stock Options and Stock-Settled SARs
Stock-settled SARs are similar to traditional stock options, except, upon exercise, holders of stock-settled
SARs will only receive shares with a value equal to the spread between the 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 based on the fair market value of IAC’s stock at the date of grant and then adjusted based
on the relative market capitalizations of IAC and HSNi following the spin-off. Awards typically vest periodically
over a three or four year term.
A summary of the status of the outstanding stock options and SARs as of December 31, 2008 is as follows: