Home Shopping Network 2011 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2011 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 84

  • 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

EXHIBIT 12.1
HSN, Inc.
Computation of Ratio of Earnings to Fixed Charges
Year Ended December 31,
2011 2010 2009 2008 2007
(unaudited)
(In thousands, except ratios)
Income (loss) from continuing operations before
income taxes ............................. $200,406 $163,564 $120,624 $(3,118,251) $169,787
Fixed charges:
Interest expense (a) ..................... 32,022 33,124 35,373 16,420 —
Estimated interest portion of rental expense . . 8,217 8,151 8,283 8,382 9,669
Total fixed charges .................. 40,239 41,275 43,656 24,802 9,669
Income (loss) from continuing operations
before income taxes and fixed
charges ......................... 240,645 204,839 164,280 (3,093,449) 179,456
Ratio of earnings to fixed charges .............. 5.98 4.96 3.8 (b) 18.56
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.