Home Shopping Network 2010 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 of the 2010 Home Shopping Network annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 89

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89

Exhibit 12.1
HSN, Inc.
Computation of Ratio of Earnings to Fixed Charges
Year Ended December 31,
2010
2009
2008
2007
2006
(unaudited)
(In thousands, except ratios)
Income (loss) from continuing operations before income taxes
$
163,603
$
120,714
$
(3,118,251
)
$
169,787
$
212,742
Fixed charges:
Interest expense (a)
33,085
35,283
16,420
—
—
Estimated interest portion of rental expense
8,151
8,283
8,382
9,669
9,471
Total fixed charges
41,236
43,566
24,802
9,669
9,471
Income (loss) from continuing operations before income taxes
and fixed charges
204,839
164,280
(3,093,449
)
179,456
222,213
Ratio of earnings to fixed charges
4.97
3.77
(b
)
18.56
23.46
Note:
The Ratio of Earnings to Fixed Charges should be read in conjunction with the Consolidated Financial Statements and Management’s
Discussion and Analysis of Financial Condition and Results of Operations in this Form 10
-
K.
(a)
Includes interest on debt and amortization of debt issuance costs. Excludes interest income and interest associated with unrecognized tax
benefit liabilities, which is recorded within income tax expense.
(b)
Income for the year ended December 31, 2008 was inadequate to cover fixed charges. Additional income of $3.1 billion would have been
necessary to bring the respective ratio to 1.0.