Home Shopping Network 2010 Annual Report Download - page 58

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Table of Contents
HSN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In addition, prior to August 1, 2011, we may redeem up to 35% of the aggregate principal amount of the Senior Notes at a redemption
price equal to 111.25% of the principal amount thereof, plus accrued interest with the net cash proceeds from certain equity offerings. If we
experience a change of control, we may be required to offer to purchase the Senior Notes at a purchase price equal to 101% of the principal
amount, plus accrued interest.
Substantially all of our domestic subsidiaries have unconditionally guaranteed the Senior Notes. The indenture governing the Senior Notes
contains covenants that limit our ability and the ability of our subsidiaries to, among other things, incur additional indebtedness, pay dividends or
make other distributions, repurchase or 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):
NOTE 12—STOCK-BASED AWARDS
Stock-based compensation expense is included in the following line items in the accompanying consolidated statements of operations (in
thousands):
As of December 31, 2010, there was approximately $20.8 million of unrecognized compensation cost, net of estimated forfeitures, related
to all equity-based awards, which is currently expected to be recognized on a straight-
line basis over a weighted average period of approximately
1.8 years.
Second Amended and Restated 2008 Stock and Annual Incentive Plan
The Second Amended and Restated 2008 Stock and Annual Incentive Plan, as amended (the “Plan”),
authorizes the issuance of 8.0 million
shares of HSNi common stock for new awards granted by HSNi. As of December 31, 2010, there were approximately 3.4 million shares of
common stock available for grants under the
55
Years Ending December 31,
2011
5,820
2012
23,280
2013
40,741
2014
—
2015
—
Thereafter
240,000
$
309,841
Year Ended December 31,
2010
2009
2008
Cost of sales
$
—
$
—
$
1,412
Selling and marketing
3,044
1,946
1,968
General and administrative
17,190
8,618
16,774
Production and programming
998
700
132
Stock
-
based compensation expense before income taxes
21,232
11,264
20,286
Income tax benefit
(8,441
)
(4,492
)
(7,709
)
Stock
-
based compensation expense after income taxes
$
12,791
$
6,772
$
12,577