Home Shopping Network 2010 Annual Report Download

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HSN, INC.
FORM 10-K
(Annual Report)
Filed 02/23/11 for the Period Ending 12/31/10
Address 1 HSN DRIVE
ST. PETERSBURG, FL 33729
Telephone 727-872-1000
CIK 0001434729
Symbol HSNI
SIC Code 5940 - Miscellaneous Shopping Goods Stores
Industry Retail (Catalog & Mail Order)
Sector Services
Fiscal Year 12/31
http://www.edgar-online.com
© Copyright 2011, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

Table of contents

  • Page 1
    HSN, INC. FORM 10-K (Annual Report) Filed 02/23/11 for the Period Ending 12/31/10 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 1 HSN DRIVE ST. PETERSBURG, FL 33729 727-872-1000 0001434729 HSNI 5940 - Miscellaneous Shopping Goods Stores Retail (Catalog & Mail Order) Services 12...

  • Page 2
    ... for the past 90 days. Yes  Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, an Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for...

  • Page 3
    ... ABOUT MARKET RISK FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE CONTROLS AND PROCEDURES OTHER INFORMATION PART III ITEM 10. ITEM 11. ITEM 12. ITEM 13. ITEM 14. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE...

  • Page 4
    ... to offer new or alternative products and services in a cost effective manner and consumer acceptance of these products and services; any technological or regulatory developments that could negatively impact the way we do business, including regulations regarding state and local sales and use taxes...

  • Page 5
    ... annually, operates seven separate internet sites and operates 20 retail and outlet stores. Our principal offices are located at 1 HSN Drive, St. Petersburg, Florida 33729 and our main telephone number is 727-872-1000. History HSNi's predecessor company began broadcasting television home shopping...

  • Page 6
    ... website, HSN.com; and a limited number of outlet stores. The HSN television network broadcasts live, customer interactive television home shopping programming 24 hours a day, seven days a week. This programming is intended to promote sales and customer loyalty through a combination of product...

  • Page 7
    .... HSN.com features more than 16,000 product videos. Cornerstone Cornerstone consists of a number of branded catalogs and related websites, the primary of which are Frontgate, Ballard Designs, Garnet Hill, Smith+Noble, The Territory Ahead, TravelSmith and Improvements, and 20 retail and outlet stores...

  • Page 8
    ... featured products. Online versions of certain special events are also featured on HSN.com for a limited period of time following their broadcast on the HSN television network. Also featured on HSN.com are over 16,000 video demonstrations of products available for sale. In an effort to promote its...

  • Page 9
    ... provides customers with convenient options in connection with the purchase, payment and shipment of merchandise, some of which vary by brand, business or product. Merchandise may be purchased online or ordered using toll free phone numbers through live sales and service agents. HSN also offers the...

  • Page 10
    ... of online payment services and electronic contracts. While U.S. Supreme Court decisions generally restrict the imposition of obligations to collect state and local sales and use taxes with respect to sales made over the internet in states in which internet retailers have no nexus, a number of...

  • Page 11
    ... stores to specialty shops, electronic retailers, direct marketing retailers, mail order and catalog companies, infomercial retailers, wholesale clubs and discount retailers. In addition, the HSN television networks compete for access to customers and audience share with other conventional forms...

  • Page 12
    ... is located at http://www.hsni.com . We make available free of charge, on or through the website, our annual, quarterly and current reports, and any amendments to those reports, as soon as reasonably practicable after electronically filing such reports with the SEC. Information relating to corporate...

  • Page 13
    ... number of existing vendors and manufacturers and/or access quality merchandise in a timely and efficient manner could cause us to miss customer delivery dates or delay scheduled promotions, which would result in the failure to meet customer expectations and could cause customers to cancel orders...

  • Page 14
    ... available to the viewing public in the form of new television networks and time-shifted viewing ( e.g. , personal video recorders, video-on-demand, interactive television and streaming video over broadband internet connections). If the HSN television networks are carried exclusively in a system...

  • Page 15
    ..., we believe that costs associated with the production and distribution of HSN television programming, paper and printing costs for Cornerstone catalogs and costs associated with online marketing, including search engine marketing (primarily the purchase of relevant keywords) are likely to increase...

  • Page 16
    ... liabilities. We market and provide a broad range of merchandise through television, online catalogs and other channels. As a result, we are subject to a wide variety of statutes, rules, regulations, policies and procedures in various jurisdictions which are subject to change at any time, including...

  • Page 17
    ... or otherwise conduct business online. Failure to effectively manage our Flexpay program could result in unplanned losses. HSN offers Flexpay, pursuant to which customers may pay for certain merchandise in two to six interest-free, monthly credit or debit card payments. We maintain allowances...

  • Page 18
    ... permit the holder, other than the "acquiring person," to purchase from us shares of common stock at a 50% discount to the then prevailing market price. As a result, the rights will cause substantial dilution to a person or group that becomes an "acquiring person" on terms not approved by our Board...

  • Page 19
    ... HSNi owns its corporate headquarters in St. Petersburg, Florida, which consist of approximately 600,000 square feet of office space and include executive offices, television studios, showrooms, broadcast facilities and administrative offices for HSN. HSN leases the HSN fulfillment centers in Piney...

  • Page 20
    ...PURCHASES OF EQUITY SECURITIES Market Information Our common stock trades on the NASDAQ Global Select Market under the symbol HSNI. The table below sets forth the high and low per share sales prices of our common stock for the periods indicated, as reported by the NASDAQ Global Select Market. Sales...

  • Page 21
    ... Index from August 12, 2008, the first day of trading of the Company's common stock on the NASDAQ Global Select Market after the spin-off through December 31, 2010, the last day of our fiscal year. 8/12/2008 12/31/2008 12/31/2009 12/31/2010 HSN, Inc. S&P 500 Retailing Index Russell 2000 Index...

  • Page 22
    ... have been had HSNi been a stand-alone company during the periods presented prior to the spin-off. For information about the shares used in computing earnings per share, see Note 10 of Notes to Consolidated Financial Statements. 2010 2009 Year Ended December 31, 2008 2007 (In thousands, except per...

  • Page 23
    ... acquire or incur any material assets or liabilities. HSN primarily consists of the HSN television networks, HSN.com and a limited number of outlet stores; and Cornerstone includes the Cornerstone Brands portfolio of leading print catalogs, related websites and a number of retail and outlet stores...

  • Page 24
    ... and proprietary label merchandise directly to consumers through (i) television home shopping programming broadcast on the HSN television networks; (ii) catalogs, which consist primarily of the Cornerstone portfolio of leading print catalogs which includes Frontgate, Ballard Designs, Garnet Hill...

  • Page 25
    ...multi-channel growth and selectively invest in catalog circulation within our brands to drive demand. We are committed to managing our operating expenses and will continue to invest in the business, as appropriate, to drive customer growth and profitability. Results of Operations Net Sales Net sales...

  • Page 26
    ...offerings, sales of key items at lower price points and product mix. Divisional product mix at HSN is provided in the table below: 2010 Year Ended December 31, 2009 2008 Jewelry Fashion (apparel & accessories) Beauty & wellness Home & other (including housewares, home fashions, electronics, fitness...

  • Page 27
    ... and other employee-related costs (including stock-based compensation) for personnel engaged in customer service, sales and merchandising functions and on-air distribution costs. Advertising and promotional expenditures primarily include catalog production and distribution costs and online marketing...

  • Page 28
    ..., legal, tax, human resources, information technology and executive management functions, bad debts, facilities costs and fees for professional services. 2010 Change Year Ended December 31, 2009 (Dollars in thousands) Change 2008 HSN As a percentage of HSN net sales Cornerstone As a percentage...

  • Page 29
    ... technology and broadcast-related investments. Adjusted EBITDA Adjusted EBITDA is a non-GAAP measure and is defined in Note 6 of Notes to Consolidated Financial Statements. 2010 Change Year Ended December 31, 2009 (Dollars in thousands) Change 2008 HSN As a percentage of HSN net sales Cornerstone...

  • Page 30
    ...as a result of productivity improvements from the 24% planned reduction in catalog circulation, offset by a $49.6 million decrease in gross profit. Operating Income (Loss) 2010 Change Year Ended December 31, 2009 Change (Dollars in thousands) 2008 HSN As a percentage of HSN net sales Cornerstone As...

  • Page 31
    ... to support sales growth and increased payments of income taxes and trade payables, partially offset by the improved operating performance. Gross inventory balances have increased 13% from December 31, 2009. Net cash used in investing activities attributable to continuing operations in 2010 of $37...

  • Page 32
    ... of Contents excess tax benefits from stock-based awards. The repayment of long-term debt under the term loan included a voluntary prepayment of approximately $25.4 million in December 2010, of which approximately $19.6 million would have been required to be paid in 2011. Net cash used in financing...

  • Page 33
    ... used for inventory purchases. Trade LOCs are guarantees of payment based upon the delivery of goods. The surety bonds primarily consist of custom bonds which relate to the import of merchandise into the United States. At December 31, 2010, we had $0.6 million recorded for uncertain tax positions...

  • Page 34
    ... provided to HSNi by IAC. The non-cash marketing was secured by IAC from Universal Television and was available to HSN for television advertising on various NBC Universal network and cable channels without any cash cost through the third quarter of 2008. The expense for this advertising is excluded...

  • Page 35
    ... handling costs) are provided based upon past experience. Actual levels of product returns may vary from these estimates. HSNi's estimated return rates were 17.8%, 17.8% and 18.4% in 2010, 2009 and 2008, respectively. Allowance for Doubtful Accounts HSNi makes judgments as to its ability to collect...

  • Page 36
    ... on the number of shares granted and the closing price of our common stock at the grant date. The fair value of stock options, stock appreciation rights and options granted under our employee stock purchase plan are estimated on the grant date using the Black-Scholes option pricing model. This model...

  • Page 37
    Table of Contents ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Consolidated Financial Statements Page Report of Independent Registered Certified Public Accounting Firm Consolidated Statements of Operations for the years ended December 31, 2010, 2009 and 2008 Consolidated Balance ...

  • Page 38
    .... We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), HSN, Inc. and subsidiaries' internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control - Integrated Framework issued by...

  • Page 39
    Table of Contents HSN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Years Ended December 31, 2009 2010 2008 Net sales Cost of sales Gross profit Operating expenses: Selling and marketing General and administrative Production and programming ...

  • Page 40
    ...-term debt, less current maturities Deferred income taxes Other long-term liabilities Total liabilities Commitments and contingencies (Note 14) SHAREHOLDERS' EQUITY: Preferred stock $0.01 par value; 25,000,000 authorized shares; no issued shares Common stock $0.01 par value; 300,000,000 authorized...

  • Page 41
    ...change in transfers to and receivables from IAC Distribution to IAC Stock-based compensation expense for equity awards Stock-based awards accounted...Stock-based compensation expense for equity awards Issuance of common stock from stock-based compensation awards Balance as of December 31, 2010...

  • Page 42
    ...Repayments of long-term debt Borrowings under revolving credit facility Repayments under revolving credit facility Distribution to IAC in connection with the spin-off Excess tax benefits from stock-based awards Issuance of common stock, net of withholding taxes Other, net Net cash (used in) provided...

  • Page 43
    ... party and private label merchandise directly to consumers through (i) television home shopping programming broadcast on the HSN television networks; (ii) catalogs, which consist primarily of the Cornerstone portfolio of leading print catalogs which includes Frontgate, Ballard Designs, Garnet Hill...

  • Page 44
    ... upon past experience. HSNi believes that actual returns of product sales have not materially varied from estimates in any of the periods presented. HSNi's estimated return rates were 17.8%, 17.8% and 18.4% in 2010, 2009 and 2008, respectively. Sales taxes collected are not included in revenue. 45

  • Page 45
    ... for doubtful accounts. HSN provides extended payment terms to its customers known as Flexpay. Flexpay is offered on certain products sold by HSN. Revenue is recorded when delivery to the customer has occurred, at which time HSN collects the first payment, sales tax and all shipping and handling...

  • Page 46
    ... Intangible Assets Goodwill acquired in business combinations is assigned to the reporting units that are expected to benefit from the combination as of the acquisition date. Goodwill and indefinite-lived intangible assets, primarily trade names and trademarks, are tested annually for impairment as...

  • Page 47
    ... transaction by which IAC sold its partnership interests in VUE. HSNi used the non-cash advertising for television advertising on various NBC Universal network and cable channels through the third quarter of 2008 without any cash cost. Income Taxes HSNi accounts for income taxes under the liability...

  • Page 48
    ... HSNi's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security, consumer credit risk and credit card fraud. HSNi also depends on third-party service providers for processing certain...

  • Page 49
    ... 10-day average market value of HSNi's stock plus an estimated control premium based upon observable transactions of comparable companies. As a result of the analyses, the goodwill impairment charges recorded in the fourth quarter of 2008 at the HSN and Cornerstone reporting units were $2.4 billion...

  • Page 50
    ... assets with definite lives is computed on a straight-line basis. The balance of intangible assets with definite lives as of December 31, 2010 is estimated to be fully amortized by December 31, 2011. The following tables present the balance of goodwill by reporting unit, including changes in the...

  • Page 51
    ... maker and executive management view the businesses, how the businesses are organized as to segment management, and the focus of the businesses with regards to the types of products or services offered or the target market. HSNi has two operating segments, HSN and Cornerstone. Entities included...

  • Page 52
    ...income (in thousands): HSN Year Ended December 31, 2010 Cornerstone Total Adjusted EBITDA Stock-based compensation expense ... from continuing operations before income taxes Income tax provision Income from continuing operations Loss from discontinued operations, net of tax Net income $213,612 (13...

  • Page 53
    ... $ 33,367 6,295 39,662 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. 54

  • Page 54
    ... Year Ended December 31, 2010 2009 2008 Net sales Loss before income taxes Income tax benefit (expense) Loss from discontinued operations, net of tax NOTE 8-FAIR VALUE $- $ (62) 23 $ (39) $- $(145) 55 $ (90) $ - $ (749) (2,661) $(3,410) Fair value is defined as the price that would be received...

  • Page 55
    ... and 2009, basic earnings per share was computed using the number of weighted average shares of common stock outstanding for the period. 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...

  • Page 56
    Table of Contents HSN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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, as if such shares were outstanding for the entire period...

  • Page 57
    ...HSN, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 11-LONG-TERM DEBT December 31, 2010 2009 Secured credit agreement expiring July 25, 2013: Term loan Revolving credit... Senior Notes. At any time prior to August 1, 2012, we may redeem the Senior Notes at a redemption price equal to the sum of...

  • Page 58
    ... line items in the accompanying consolidated statements of operations (in thousands): 2010 Year Ended December 31, 2009 2008 Cost of sales Selling and marketing General and administrative Production and programming Stock-based compensation expense before income taxes Income tax benefit Stock...

  • Page 59
    ...option awards granted on or prior to December 31, 2007 to purchase shares of IAC common stock, whether vested or unvested, converted into an option to purchase shares of common stock of each of the five publicly-traded companies resulting from the spin-off (the "Spincos"). Certain unvested RSUs were...

  • Page 60
    ...,426 of the nonvested awards outstanding as of December 31, 2010 were held by employees of the other Spincos. The weighted average fair value of RSUs granted during the years ended December 31, 2010, 2009 and 2008 based on market prices of HSNi's common stock on the grant date was $23.50, $5.19 and...

  • Page 61
    ... patterns, giving consideration to expectations of future employee behavior. The weighted average assumptions used in the Black-Scholes option pricing model are as follows: Year Ended December 31, 2010 2009 2008 Volatility factor Risk-free interest rate Expected term Dividend yield 46.5% 2.39...

  • Page 62
    ...ESPP. The ESPP permits employees to purchase shares of HSNi's common stock during semi-annual purchase periods. Under the terms of the ESPP, eligible employees accumulate funds through payroll deductions and purchase shares at a price equal to the lesser of 85% of the fair market value of the common...

  • Page 63
    ... by IAC upon the purchase of Cornerstone Brands. The initial value of the preferred interest was equal to the acquisition price of Cornerstone Brands. The preferred interest accretes value at a 15% annual rate. Upon exercise of the put or call the consideration is payable in HSNi shares or cash or...

  • Page 64
    ... for the years ended December 31, 2010, 2009 and 2008, respectively, for tax deductions attributable to stock-based compensation. The related income tax benefits of this stock-based compensation were recorded as amounts charged or credited to the income tax provision and additional paid-in capital...

  • Page 65
    ...amount within twelve months of the current reporting date due to settlement with the taxing authority. An estimate of other changes in unrecognized tax benefits cannot be made but are not expected to be significant. By virtue of previously filed separate company and consolidated tax returns with IAC...

  • Page 66
    ... New York City, for various tax years after December 31, 2003. These examinations are expected to be completed in 2011. By virtue of the Tax Sharing Agreement with IAC, HSNi is indemnified with respect to additional tax liabilities for consolidated or combined federal tax returns prepared and filed...

  • Page 67
    ...- - - The letters of credit ("LOCs") primarily consist of trade LOCs, which are used for inventory purchases. Trade LOCs are guarantees of payment based upon the delivery of goods. The surety bonds primarily consist of customs bonds, which relate to the import of merchandise into the United States...

  • Page 68
    ... obligations under the Separation and Distribution Agreement, Employee Matters Agreement and Transition Services Agreement. HSNi continues to be subject to certain post-spin obligations under the Tax Sharing Agreement. Relationship Between Liberty Media Corporation and HSNi After the Spin-off Spinco...

  • Page 69
    ...were nominated by Liberty, are officers or employees of HSNi or were not...business combination has been approved by HSNi; transfers in a public offering in a manner designed to result in a wide distribution, provided that no such transfer is made, to the knowledge of the Liberty Parties, to any person...

  • Page 70
    ...of Cash Flow Information: 2010 Year Ended December 31, 2009 2008 (in thousands) Cash paid during the period for: Income tax payments (including amounts paid to IAC for HSNi's share of IAC's consolidated tax liability in periods prior to the spin-off) Income tax refunds Interest payments 71 $82,860...

  • Page 71
    ... or commences a tender or exchange offer for 15% or more of HSNi's common stock. If the rights become exercisable, each right will permit its holder, other than the "acquiring person," to purchase from us shares of common stock at a 50% discount to the then prevailing market price. As a result, the...

  • Page 72
    ... Description Deductions 2010 Allowance for doubtful accounts Sales return accrual Deferred tax valuation allowance 2009 Allowance for doubtful accounts Sales return accrual Deferred tax valuation allowance 2008 Allowance for doubtful accounts Sales return accrual Deferred tax valuation allowance...

  • Page 73
    ... in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and to ensure that information is accumulated and communicated to our management, including the Chief Executive Officer and...

  • Page 74
    ... control over financial reporting in order to improve its effectiveness. In the course of these evaluations, we modify and refine our internal processes as conditions warrant. As required by Rule 13a-15(d) under the Exchange Act, our management, including our Chief Executive Officer and our Chief...

  • Page 75
    ... accompanying management's annual report on internal control over financial reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting...

  • Page 76
    ... ITEM 9B. None. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OTHER INFORMATION Incorporated by reference from our Proxy Statement for our 2011 Annual Meeting of Shareholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2010. ITEM...

  • Page 77
    ... Tax Sharing Agreement, dated August 20, 2008, among HSN, Inc., Interval Leisure Group, Inc., Ticketmaster, Inc., Tree.com and IAC/InterActive Corp 74 Exhibit 3.1 to the Company's Current Report on Form 8-K filed August 25, 2008 Exhibit 3.2 to the Company's Current Report on Form 8-K filed...

  • Page 78
    ...Quarterly Report on Form 10-Q filed August 4, 2010 Exhibit 10.14 to the Company's Annual Report on Form 10K filed March 31, 2009 Exhibit 10.12 to the Company's Registration Statement on Form S-1 (Registration No. 333-152697) filed August 1, 2008 10.9 10.10 10.11 10.12 10.13 * Reflects management...

  • Page 79
    ... Agreement (for NonEmployee Directors)* HSN, Inc. Second Amended and Restated 2008 Stock and Annual Incentive Plan* Named Executive Officer and EVP Severance Plan* Executive Severance Plan* Form of Performance Cash Award Agreement* Employee Stock Purchase Plan Computation of Ratio of Earnings to...

  • Page 80
    ...Contents Exhibit No. Description of Document Method of Filing 32.1 Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted...

  • Page 81
    ...of 1934, this Annual Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on February 23, 2011. / S/ /S/ M INDY G ROSSMAN Mindy Grossman Chief Executive Officer and Director (Principal Executive Officer) Chief Financial Officer (Principal...

  • Page 82
    ... No. Description of Document 12.1 21.1 23.1 31.1 31.2 32.1 32.2 Computation of Ratio of Earnings to Fixed Charges Subsidiaries of HSN, Inc. Consent of Independent Registered Certified Accounting Firm Chief Executive Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of...

  • Page 83
    Exhibit 12.1 HSN, Inc. Computation of Ratio of Earnings to Fixed Charges 2010 2009 Year Ended December 31, 2008 2007 (unaudited) (In thousands, except ratios) 2006 Income (loss) from continuing operations before income taxes Fixed charges: Interest expense (a) Estimated interest portion of rental ...

  • Page 84
    .... Ballard Designs, Inc. Cinmar, LLC Contract Décor, Inc. Cornerstone Brands, Inc. Cornerstone Consolidated Services Group, Inc. Cornerstone Services, Inc. Exception Management Services LLC Frontgate Marketing, Inc. Garnet Hill, Inc. H.O.T. Networks Holdings (Delaware) LLC Home Shopping Network En...

  • Page 85
    ... to the Employee Stock Purchase Plan of HSN, Inc.; of our reports dated February 23, 2011, with respect to the consolidated financial statements and schedule of HSN, Inc., and the effectiveness of internal control over financial reporting of HSN, Inc., included in this Annual Report (Form 10-K) of...

  • Page 86
    ... ACT OF 2002 I, Mindy Grossman, certify that: 1. 2. I have reviewed this Annual Report on Form 10-K of HSN, Inc.; Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the...

  • Page 87
    ... OF 2002 I, Judy A. Schmeling, certify that: 1. 2. I have reviewed this Annual Report on Form 10-K of HSN, Inc.; Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the...

  • Page 88
    ...: (1) the Annual Report of HSN, Inc. on Form 10-K for the fiscal year ended December 31, 2010 of HSN, Inc. (the "Report"), which this statement... (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HSN, Inc. ...

  • Page 89
    ... the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge: (1) the Annual Report of HSN, Inc. on Form 10-K for the fiscal year ended December 31, 2010 of HSN, Inc. (the "Report"), which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of...