Home Shopping Network 2008 Annual Report Download - page 73

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HSN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
70
NOTE 19—QUARTERLY RESULTS (UNAUDITED)
(a)
(b)
(c)
Year Ended December 31, 2008
Net sales $ 676,886 $ 695,826 $ 672,348 $ 778,533
Gross profit 235,484 248,565 235,826 265,555
Operating income (loss) 15,078 (277,632) 12,316 (2,852,073)
Income (loss) from continuing operations 9,406 (249,377) 5,018 (2,152,525)
(Loss) income from discontinued operations, net of tax (78) (451) (2,837) (44)
Net income 9,328 (249,828) 2,181 (2,152,569)
Income (loss) from continuing operations per share:
Basic $ 0.17 $ (4.44) $ 0.09 $ (38.29)
Diluted $ 0.17 $ (4.44) $ 0.09 $ (38.29)
Net income (loss) per share:
Basic $ 0.17 $ (4.44) $ 0.04 $ (38.29)
Diluted $ 0.16 $ (4.44) $ 0.04 $ (38.29)
Year Ended December 31, 2007
Net sales $ 666,705 $ 681,506 $ 680,762 $ 879,268
Gross profit 247,999 260,032 256,294 323,868
Operating income 30,147 29,763 36,427 73,453
Income from continuing operations 18,652 18,420 22,589 45,571
Income (loss) from discontinued operations, net of tax (1,566) 56,186 (5,934) 10,886
Net income 17,086 74,606 16,655 56,457
Income from continuing operations per share:
Basic $ 0.33 $ 0.33 $ 0.40 $ 0.81
Diluted $ 0.33 $ 0.33 $ 0.40 $ 0.80
Net income per share:
Basic $ 0.30 $ 1.33 $ 0.30 $ 1.00
Diluted $ 0.30 $ 1.32 $ 0.29 $ 1.00
(In thousands)
Quarter Ended
March 31, Quarter Ended
June 30, Quarter Ended
September 30,
Quarter Ended
December 31,
(a) The second quarter of 2008 includes $300.0 million of asset impairment charges related to goodwill and
intangible assets and a $36.6 million tax benefit from the release of the related deferred tax liabilities in the
Cornerstone segment. These adjustments increased diluted loss per share by $4.65.
The second quarter of 2007 includes an after-tax gain of $34.8 million related to the sale of HSE, IAC's former
Retailing International segment., which increased diluted earnings per share by $0.61 per share for the quarter
ended June 30, 2007.
(b) The third quarter of 2007 includes an after-tax loss of $4.2 million related to an adjustment to the gain
recognized for the sale of HSE. This adjustment decreased diluted earnings per share by $0.07.
(c) The fourth quarter of 2008 includes $2.9 billion of asset impairment charges related to goodwill and intangible
assets and $716.7 million of tax benefits from 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, after taxes, decreased loss per share by $0.06.