Home Shopping Network 2011 Annual Report Download - page 47

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HSN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Amortization expense for the definite-lived intangible assets was $0.4 million, $0.6 million and $0.6 million
for the years ended December 31, 2011, 2010 and 2009. At December 31, 2011 and 2010, the following is
information on intangible assets with definite lives (in thousands):
Cost
Accumulated
Amortization Net
Weighted
Average
Amortization
Life (Years)
As of December 31, 2011 .................................. $ — $ — $— —
As of December 31, 2010 .................................. $5,622 $(5,247) $375 10.0
NOTE 4—PROPERTY AND EQUIPMENT
The balance of property and equipment, net, is as follows (in thousands):
December 31,
2011 2010
Capitalized software ...................................................... $197,842 $ 211,816
Computer and broadcast equipment .......................................... 93,364 93,284
Buildings and leasehold improvements ....................................... 93,941 90,417
Furniture and other equipment .............................................. 75,185 72,726
Projects in progress ....................................................... 8,881 3,825
Land and land improvements ............................................... 10,962 10,922
480,175 482,990
Less: accumulated depreciation and amortization ............................... (321,741) (328,003)
Total property and equipment, net ....................................... $158,434 $ 154,987
Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable. As a result of the impairment charge recognized in the fourth
quarter of 2011 related to the indefinite-lived intangible assets of one of the Cornerstone brands, HSNi assessed
if there was an impairment of any of this brand’s long-lived assets. As a result of this assessment, HSNi
recognized an impairment charge of $0.8 million in 2011. This charge is included in operating expenses in the
line item “General and administrative” in the accompanying consolidated statements of operations. As we
periodically reassess estimated future cash flows and asset fair values, changes in our estimates and assumptions
may cause us to realize additional impairment charges in the future.
NOTE 5—ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consist of the following (in thousands):
December 31,
2011 2010
Accrued sales returns ...................................................... $ 39,563 $ 37,354
Accrued cable and satellite related fees ........................................ 27,621 30,442
Accrued freight and fulfillment expenses ....................................... 16,384 18,241
Accrued compensation and benefits ........................................... 40,983 34,692
Income taxes payable ...................................................... 3,417 9,989
Other accrued expenses and current liabilities ................................... 66,023 85,396
Total accrued expenses and other current liabilities ........................... $193,991 $216,114
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