Home Shopping Network 2012 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2012 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 98

  • 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
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98

Table of Contents
The following table presents HSNi’s basic and diluted earnings per share (in thousands, except per share data):
NOTE 11—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, 2012, there was approximately $15.4 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. The purpose of the Plan is to assist HSNi in attracting, retaining and motivating
officers, employees, directors and consultants, and to provide HSNi with the ability to provide incentives more directly linked to the profitability
of HSNi’s business and increases in shareholder value. As of December 31, 2012, there were approximately 3.3 million shares of common stock
available for grants under the Plan.
Year Ended December 31,
2012
2011
2010
Net income
Continuing operations
$
136,497
$
127,652
$
100,441
Discontinued operations
(5,822
)
(4,582
)
(1,918
)
Net income
$
130,675
$
123,070
$
98,523
Weighted average number of shares outstanding:
Basic
56,314
58,636
57,414
Dilutive effect of stock-based compensation awards
1,642
2,053
2,132
Diluted
57,956
60,689
59,546
Net income (loss) per share - basic:
Continuing operations
$
2.42
$
2.18
$
1.75
Discontinued operations
(0.10
)
(0.08
)
(0.03
)
Net income
$
2.32
$
2.10
$
1.72
Net income (loss) per share - diluted:
Continuing operations
2.36
2.10
1.69
Discontinued operations
$
(0.11
)
$
(0.07
)
$
(0.04
)
Net income
$
2.25
$
2.03
$
1.65
Unexercised employee stock options and stock appreciation rights and unvested restricted stock units
excluded from the diluted EPS calculation because their effect would have been antidilutive
1,276
911
1,632
Year Ended December 31,
2012
2011
2010
Selling and marketing
$
3,515
$
4,722
$
4,042
General and administrative
15,541
21,679
17,190
Stock-based compensation expense before income taxes
19,056
26,401
21,232
Income tax benefit
(6,494
)
(8,792
)
(8,441
)
Stock-based compensation expense after income taxes
$
12,562
$
17,609
$
12,791