Home Shopping Network 2013 Annual Report Download

Download and view the complete annual report

Please find the complete 2013 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

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013
Commission File No. 001-34061
HSN, INC.
(Exact name of registrant as specified in its charter)
Delaware 26-2590893
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
1 HSN Drive, St. Petersburg, Florida 33729
(Address of principal executive offices) (Zip Code)
(727) 872-1000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of exchange on which registered
Common Stock, par value $0.01
Series A Junior Participating
Preferred Stock Purchase Rights
NASDAQ Global Select Market
NASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes ÈNo
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. Yes No È
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. Yes ÈNo
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, an Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter
period that the registration was required to submit and post such files). Yes ÈNo
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not
be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III
of this Form 10-K or any amendment to this Form 10-K.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company as defined in Rule 12b-2 of the Exchange Act.
Large accelerated filer ÈAccelerated filer
Non-accelerated filer Smaller reporting company
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No È
The aggregate market value of the registrant’s outstanding common stock held by non-affiliates as of June 30, 2013 (the registrant’s
most recently completed second fiscal quarter), was $1,759,570,690 (based on a closing price of $53.72 per share for the registrant’s
common stock on the NASDAQ Global Select Market).
As of February 18, 2014, the registrant had 53,122,005 shares of common stock, $0.01 par value per share, outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement for the 2014 Annual Meeting of Shareholders to be filed with the U.S. Securities and
Exchange Commission no later than 120 days after the end of the registrant’s 2013 fiscal year end are incorporated by reference into Items
10, 11, 12, 13 and 14 of Part III of this Form 10-K.

Table of contents

  • Page 1
    ... Employer Identification No.) 1 HSN Drive, St. Petersburg, Florida (Address of principal executive offices) 33729 (Zip Code) (727) 872-1000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of exchange on...

  • Page 2
    ... ABOUT MARKET RISK ...ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ...ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE ...ITEM 9A. CONTROLS AND PROCEDURES...ITEM 9B. OTHER INFORMATION ...PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE...

  • Page 3
    ...of customer, employee or company information, or the failure to comply with various laws applicable to HSNi in the event of such a breach; HSNi's business prospects and strategy, including whether HSNi's initiatives will be effective; and our ability to offer new or alternative products and services...

  • Page 4
    ... television, online, mobile, catalogs and in retail and outlet stores through the eight brands of its two operating segments, HSN and Cornerstone. HSN is an interactive entertainment and lifestyle retailer offering a curated assortment of exclusive products and top brand names to its customers...

  • Page 5
    ...for its Cornerstone brands. HSN Overview HSN includes the HSN television networks; its related website, HSN.com; its mobile applications and a limited number of outlet stores. The HSN television network broadcasts live, customer interactive home shopping programming 24 hours a day, seven days a week...

  • Page 6
    ...overlap in the product offerings, the home brands are comprised of Frontgate, Ballard Designs, Grandin Road and Improvements. The apparel brands are comprised of Garnet Hill, TravelSmith and Chasing Fireflies. There are also 10 retail and outlet stores located throughout the United States. Frontgate...

  • Page 7
    ... catalog online. In addition, a growing number of customers use mobile devices to shop the Cornerstone brands. Supply HSN and Cornerstone purchase products by way of short- and long-term contracts and purchase orders, including products made to their respective specifications, as well as name brand...

  • Page 8
    ... in connection with the purchase, payment and shipment of merchandise, some of which may vary by brand, business or product. Merchandise may be purchased online, through mobile devices, or ordered using toll free phone numbers through live sales and service agents. HSN also offers the convenience of...

  • Page 9
    ... to control marketing on or through the internet using our various domain names either of which could adversely affect our business, financial condition and results of operations. Some of our businesses have been granted patents and/or have patent applications pending with the United States Patent...

  • Page 10
    ...These brands and businesses are in direct competition for consumers with traditional and online retailers (both television and internet retailers), ranging from large department stores to specialty shops, electronic retailers, direct marketing retailers, mail order and catalog companies, infomercial...

  • Page 11
    ... retailers, internet retailers, and mail-order and catalog companies. Many of our current and potential competitors have greater resources, longer histories, more customers and greater brand recognition than we do. They may secure better terms from vendors, adopt more aggressive pricing, offer free...

  • Page 12
    ... cost-efficient operations. We use the internet, mobile devices, social networking and other online activities to connect with our customers. Our success depends, in part, on our ability to maintain the integrity of our systems and infrastructures, including websites, information and related systems...

  • Page 13
    ... over public networks. We have observed an increased number of cyber attacks that include attempts to gain unauthorized access to digital systems for purposes of misappropriating assets or sensitive information. Our failure, and/or the failure by the various third party vendors and service providers...

  • Page 14
    ... to customers and the mailing of catalogs, which over the past few years have experienced volatility in comparison to historical levels. Variations in the mix and quantity of products we sell impact the cost to ship our products as do the shipping promotions we frequently offer to drive revenues. We...

  • Page 15
    ...could result in unplanned losses. HSN offers Flexpay, a program which customers may pay for certain merchandise in two to six interest-free, monthly credit or debit card installments. This is an effective tool for driving sales, primarily for higher-priced items. We maintain allowances for estimated...

  • Page 16
    ... the importation, sale and promotion of merchandise and the operation of retail stores and warehouse facilities, as well as laws and regulations applicable to the internet and businesses engaged in digital commerce, such as those regulating the sending of unsolicited, commercial electronic mail. Our...

  • Page 17
    ...in the market price of our stock. These and other factors may result in short-term or long-term negative pressure on the value of our common stock. ITEM 1B. UNRESOLVED STAFF COMMENTS Not applicable. ITEM 2. PROPERTIES HSNi owns its corporate headquarters in St. Petersburg, Florida, which consist...

  • Page 18
    ... per share sales prices of our common stock, as reported by the NASDAQ Global Select Market, and the dividends declared for the periods indicated. Sales Price Fiscal 2013 Fourth Quarter...Third Quarter ...Second Quarter ...First Quarter ...Fiscal 2012 Fourth Quarter...Third Quarter ...Second Quarter...

  • Page 19
    ... at an average price of $51.99 per share. Below is a summary of our common stock repurchases during the fourth quarter of 2013, as well as the number of shares still available for purchase as of December 31, 2013: Number of Shares Purchased as Part of Publicly Announced Plans or Programs 168,313...

  • Page 20
    ...statements and related notes included herein. For information about the shares used in computing earnings per share, see Note 10 of Notes to Consolidated Financial Statements. Year Ended December 31, 2013 Statement of Operations Data: Net sales ...Operating income...Income from continuing operations...

  • Page 21
    ..., Chasing Fireflies, Frontgate, Garnet Hill, Grandin Road, Improvements and TravelSmith; (ii) websites, consisting primarily of the eight branded websites operated by Cornerstone; (iii) retail and outlet stores; and (iv) mobile devices. Sources of Revenue HSN revenue includes merchandise sales...

  • Page 22
    .... The number of units shipped in 2012 increased 8% to 59.6 million and the average price point decreased 2% to $62.92. HSN HSN net sales in 2013 increased 2%, or $47.4 million. Sales grew in beauty & health, home design and household, offset by lower sales in jewelry, culinary and electronics. HSN...

  • Page 23
    ... 31, 2013 Home brands (Ballard Designs, Frontgate, Grandin Road and Improvements) ...Apparel brands (Chasing Fireflies, Garnet Hill and TravelSmith) (a) ...Total ...(a) Chasing Fireflies was acquired in April 2012. 73.9% 26.1% 100.0% 2012 71.8% 28.2% 100.0% 2011 71.5% 28.5% 100.0% Cost of Sales and...

  • Page 24
    ...costs (including stock-based compensation) for personnel engaged in customer service, sales and merchandising, production and programming functions and on-air distribution costs. Advertising and promotional expenditures primarily include catalog production and distribution costs and online marketing...

  • Page 25
    ... stock-based compensation) for personnel engaged in finance, legal, tax, human resources, information technology and executive management functions, bad debts, facilities costs and fees for professional services. Year Ended December 31, 2013 HSN ...As a percentage of HSN net sales ...Cornerstone...

  • Page 26
    ... for employee-related costs, digital and brand marketing and bad debt expense. Cornerstone's Adjusted EBITDA increased 9%, or $5.8 million, primarily due to the acquisition of Chasing Fireflies in April 2012. Operating Income Year Ended December 31, 2013 HSN ...As a percentage of HSN net sales...

  • Page 27
    ... tax" in the accompanying consolidated statements of operations. In July 2012, substantially all of the assets and certain liabilities of The Territory Ahead, a Cornerstone brand specializing in casual apparel for men and women, were sold for approximately $1.1 million. The operating results for The...

  • Page 28
    ...to support its future sales growth. Cornerstone's inventory increased 26% in 2013 and 10% in 2012. Consistent with prior years, HSN continued to increase its offering of Flexpay, an installment program which allows customers to pay for select merchandise in two to six interest-free, monthly payments...

  • Page 29
    ...allows HSNi to purchase 10 million shares of its common stock from time to time through privately negotiated and/or open market transactions. The timing of any repurchases and actual number of shares repurchased will depend on a variety of factors, including the stock price, corporate and regulatory...

  • Page 30
    ...seasonality, although historically our business has exhibited less seasonality than many other retail businesses. Our sales levels are generally higher in the fourth quarter. Reported revenues in the fourth quarter were 30% of total reported annual revenues in 2013, 2012 and 2011, respectively. Non...

  • Page 31
    ... (but not limited to): macroeconomic, industry and market conditions; cost factors affecting the business; the overall financial performance of the business; any relevant changes in management, strategies or customers; and any sustained decreases in its stock price. If HSNi determines based on this...

  • Page 32
    ... reimbursed shipping and handling costs) are provided based upon past experience. Actual levels of product returns may vary from these estimates. HSNi's estimated return rates were 17.0%, 17.8% and 18.5% in 2013, 2012 and 2011, respectively. Allowance for Doubtful Accounts HSNi makes judgments...

  • Page 33
    ... estimates. ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK At December 31, 2013 and 2012, HSNi's outstanding long-term debt was $240.6 million and $250.0 million, respectively, all of which pays interest at a variable rate, generally tied to LIBOR. Changes in interest rates on...

  • Page 34
    ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Consolidated Financial Statements Page Report of Independent Registered Certified Public Accounting Firm ...Consolidated Statements of Operations for the years ended December 31, 2013, 2012 and 2011...Consolidated Statements of ...

  • Page 35
    ... material respects the information set forth therein. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), HSN, Inc. and subsidiaries' internal control over financial reporting as of December 31, 2013, based on criteria established...

  • Page 36
    HSN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Years Ended December 31, 2013 Net sales ...Cost of sales ...Gross profit ...Operating expenses: Selling and marketing ...General and administrative ...Depreciation and amortization...Total ...

  • Page 37
    ...) Years Ended December 31, 2013 Net income ...Other comprehensive income (loss), net of tax: Change in fair value of derivative instrument ...Other comprehensive income (loss), net of tax ...Comprehensive income ...$ 825 825 179,274 $ (471) (471) 130,204 $ - - 123,070 $ 178,449 $ 2012 130,675 $ 2011...

  • Page 38
    HSN, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) December 31, 2013 ASSETS Current assets: Cash and cash equivalents ...Accounts receivable, net of allowance of $16,863 and $14,537, respectively ...Inventories...Deferred income taxes ...Prepaid expenses and ...

  • Page 39
    HSN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In thousands) Preferred Stock Shares Balance as of December 31, 2010 Net income ...Stock-based compensation expense for equity awards ...Cash dividend declared on common stock ...Issuance of common stock from stock-based ...

  • Page 40
    ... used in investing activities attributable to continuing operations ...Cash flows from financing activities attributable to continuing operations: Redemption of Senior Notes ...Borrowing under term loan ...Repayments of long-term debt ...Payments of debt issuance costs...Repurchase of common stock...

  • Page 41
    ... Designs, Chasing Fireflies, Frontgate, Garnet Hill, Grandin Road, Improvements and TravelSmith; (iii) websites, which consist primarily of HSN.com and the eight branded websites operated by Cornerstone; (iv) retail and outlet stores; and (v) mobile devices. HSNi's television home shopping business...

  • Page 42
    ... customer's method of payment. HSN accepts most credit and select debit cards. HSN offers Flexpay programs ranging from two to six interest-free monthly payments. Flexpay receivables consist of outstanding balances owed by customers, less a reserve for uncollectible balances. The balance of accounts...

  • Page 43
    ... which is generally three months from the date catalogs are mailed. Such capitalized costs totaled $18.8 million and $19.1 million as of December 31, 2013 and 2012, respectively, and are included in "Prepaid expenses and other current assets" in the accompanying consolidated balance sheets. Of these...

  • Page 44
    ... estimates underlying the accompanying consolidated financial statements include: the determination of the lower of cost or market adjustment for inventory; sales returns and other revenue allowances; the allowance for doubtful accounts; the recoverability of long-lived assets; the impairment of...

  • Page 45
    ...recorded in connection with the acquisition of Chasing Fireflies which was allocated to the Cornerstone reporting unit. No adjustments have been made to the goodwill balance subsequent to the acquisition. In the fourth quarter of 2013 and 2012, HSNi performed a qualitative assessment of its goodwill...

  • Page 46
    The following tables present the balance of goodwill by reporting unit, including changes in the carrying amount of goodwill, for the years ended December 31, 2013 and 2012 (in thousands): Gross Balance as of January 1, 2013 HSN ...Cornerstone ...Total ...$ $ 2,391,594 502,464 2,894,058 $ $ ...

  • Page 47
    ...chief operating decision maker and executive management view the businesses, how the businesses are organized as to segment management, and the focus of the businesses with regards to the types of products or services offered or the target market. HSNi has two operating segments, HSN and Cornerstone...

  • Page 48
    ...does not report revenue from external customers for each product or each group of similar products as it is impracticable to do so. HSNi maintains operations principally in the United States with no long-lived assets and insignificant net sales in all other countries. NOTE 7-LONG-TERM DEBT December...

  • Page 49
    ... and the predetermined margin is based on HSNi's leverage ratio. The term loan interest rate as of December 31, 2013 was 1.66%. HSNi pays a commitment fee ranging from 0.25% to 0.40% (based on the leverage ratio) on the unused portion of the revolving credit facility. The amount available to HSNi...

  • Page 50
    ... this interest rate swap. NOTE 9-FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value assumptions are made at a specific point in time and changes in...

  • Page 51
    ... million and the estimated costs to sell the business. See Note 17 for further discussion of the sale of The Territory Ahead. There were no other fair value adjustments to the carrying values of HSNi's property and equipment and definite-lived intangible assets during December 31, 2013 or 2012. 49

  • Page 52
    ... earnings per share was computed using the number of weighted average shares of common stock outstanding for the period. Diluted Earnings Per Share For the years ended December 31, 2013, 2012 and 2011, diluted earnings per share was computed using the number of shares of common stock outstanding for...

  • Page 53
    ... directly linked to the profitability of HSNi's business and increases in shareholder value. As of December 31, 2013, there were approximately 2.7 million shares of common stock available for grants under the Plan. HSNi can grant restricted stock units ("RSUs"), market stock units ("MSUs"), stock...

  • Page 54
    ... awards granted under the Plan is required to be priced at, or above, the fair market value of HSNi's stock at the date of grant. Awards typically vest ratably over a term of 3 years . A summary of the status of the outstanding stock options and SARs as of December 31, 2013 is as follows: Weighted...

  • Page 55
    ... Plan during the years ended December 31, 2013, 2012 and 2011 at market prices equal to HSNi's common stock on the grant date were $22.57, $12.96, and $12.84, respectively. At the date of the Spin-off, HSNi granted approximately 719,000 stock options to its Chief Executive Officer at exercise prices...

  • Page 56
    ...the end of each reporting period. As of December 31, 2013 and 2012, a liability of $1.6 million and $0.5 million, respectively, was recorded for these awards. Employee Stock Purchase Plan The HSN, Inc. 2010 Employee Stock Purchase Plan ("ESPP") was approved May 2010 and 750,000 shares of HSNi common...

  • Page 57
    ...2013, 2012 and 2011, respectively, for tax deductions attributable to stock-based compensation. The related income tax benefits of this stock-based compensation were recorded as amounts charged or credited... 2013 and 2012 are presented below (in thousands). The valuation allowance is related to items ...

  • Page 58
    ...are in process. HSNi does not anticipate any material adjustments to our tax liabilities resulting from any of these examinations. HSNi and several companies previously owned by IAC, were spun-off from IAC on August 20, 2008. In connection with the spin-off, HSNi entered into a Tax Sharing Agreement...

  • Page 59
    ... or not, could be time-consuming, result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. HSNi leases satellite transponders, warehouse and office space, equipment and services used in connection with its...

  • Page 60
    ...- The letters of credit ("LOCs") primarily consist of trade LOCs, which are used for inventory purchases. Trade LOCs are guarantees of payment based upon the delivery of goods. The surety bonds primarily consist of customs bonds, which relate to the import of merchandise into the United States. The...

  • Page 61
    ..., to acquisitions representing no more than one-third of HSNi Common Stock received by the Liberty Parties in the Spin-off: • • transfers pursuant to a third party tender or exchange offer or in connection with any merger or other business combination, which merger or business combination has...

  • Page 62
    ... its holder, other than the "acquiring person," to purchase from us shares of common stock at a 50% discount to the then prevailing market price. As a result, the rights will cause substantial dilution to a person or group that becomes an "acquiring person" on terms not approved by HSNi's Board of...

  • Page 63
    ...$ 3,548 (5,822) $ NOTE 18-ACQUISITION In April 2012, HSNi, through Cornerstone, acquired substantially all of the assets and liabilities of Chasing Fireflies, LLC, a leading direct-to-consumer premium children's and family lifestyle brand. The purchase price was $22.9 million in cash and contingent...

  • Page 64
    ... to the sales of Smith +Noble and The Territory Ahead, two brands formerly included in the Cornerstone portfolio, and is included in the line item "(Loss) income from discontinued operations, net of tax." This loss decreased diluted earnings per share by $0.06. (b) The third quarter of 2013 includes...

  • Page 65
    ... 2012 and 2011, respectively. Effective January 1, 2014, HSNi initiated a nonqualified deferred compensation plan allowing salary and annual bonus deferrals for qualifying employees as permitted by the Internal Revenue Code. Participant deferrals will earn investment returns based on a select number...

  • Page 66
    ...563 14,274 Description 2013 Allowance for doubtful accounts ...Sales return accrual ...Deferred tax valuation allowance ...2012 Allowance for doubtful accounts ...Sales return accrual ...Deferred tax valuation allowance ...2011 Allowance for doubtful accounts ...Sales return accrual ...Deferred tax...

  • Page 67
    ..., processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls also are designed to reasonably assure that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer...

  • Page 68
    ... the Exchange Act, our management, including our Chief Executive Officer and our Chief Financial Officer, also conducted an evaluation of our internal control over financial reporting to determine whether any changes occurred during the quarter ended December 31, 2013 that have materially affected...

  • Page 69
    ... over financial reporting as of December 31, 2013, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of HSN, Inc. and subsidiaries as of December 31, 2013 and 2012, and...

  • Page 70
    ITEM 9B. None. OTHER INFORMATION PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Incorporated by reference from our Proxy Statement for our 2014 Annual Meeting of Shareholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2013. ITEM...

  • Page 71
    ... 1, 2010 between HSN, Inc., as Issuer, and The Bank of New York Mellon, as Trustee Method of Filing Exhibit 3.1 to the Company's Current Report on Form 8-K filed August 25, 2008 Exhibit 3.2 to the Company's Current Report on Form 8-K filed August 25, 2008 Exhibit 3.3 to the Company's Annual Report...

  • Page 72
    ... Report on Form 8-K (SEC File No. 0-20570) dated May 16, 2008 and incorporated herein by reference 10.5 10.6 10.7 Credit Agreement dated as of April 24, 2012, among Exhibit 10.1 to the Company's Current Report on HSN, Inc., as Borrower; Bank of America, N.A., as Form 8-K filed April 25, 2012...

  • Page 73
    ... of Market Stock Unit Agreement* HSN, Inc. Nonqualified Deferred Compensation Plan Computation of Ratio of Earnings to Fixed Charges Code of Ethics and Business Conduct Subsidiaries of HSN, Inc. Consent of Independent Registered Certified Public Accounting Firm Certification of the Chief Executive...

  • Page 74
    ... following financial information from HSNi's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, formatted in XBRL (eXtensible Business Reporting Language) and furnished electronically herewith: (i) Consolidated Statements of Operations for the Years Ended December 31, 2013, 2012...

  • Page 75
    ... Annual Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated as of February 20, 2014. /S/ Mindy Grossman Mindy Grossman Chief Executive Officer and Director (Principal Executive Officer) Chief Financial Officer and Chief Operating Officer...

  • Page 76
    ...Amended and Restated 2008 Stock and Annual Incentive Plan HSN, Inc. Nonqualified Deferred Compensation Plan Computation of Ratio of Earnings to Fixed Charges Subsidiaries of HSN, Inc. Consent of Independent Registered Certified Public Accounting Firm Chief Executive Officer Certification Pursuant to...

  • Page 77
    EXHIBIT 12.1 HSN, Inc. Computation of Ratio of Earnings to Fixed Charges Year Ended December 31, 2013 2012 2011 (unaudited) (In thousands, except ratios) 2010 2009 Income from continuing operations before income taxes ... $ 276,141 $ 219,870 $ 207,758 $ 166,618 $ 128,512 Fixed charges: ...

  • Page 78
    ... December 31, 2013 Name AST Sub, Inc...Ballard Designs, Inc...Chasing Fireflies, LLC...Cinmar, LLC...Contract Décor, Inc...Cornerstone Brands, Inc...Cornerstone Services, Inc...Frontgate Marketing, Inc...Garnet Hill, Inc...H.O.T. Networks Holdings (Delaware) LLC ...Home Shopping Network En Espanol...

  • Page 79
    ... to the Employee Stock Purchase Plan of HSN, Inc.; of our reports dated February 20, 2014, with respect to the consolidated financial statements and schedule of HSN, Inc., and the effectiveness of internal control over financial reporting of HSN, Inc., included in this Annual Report (Form 10...

  • Page 80
    ... report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: February 20, 2014 By: /s/ Mindy Grossman Mindy Grossman Chief Executive Officer

  • Page 81
    ...in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who...

  • Page 82
    ... 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HSN, Inc. Date: February 20, 2014 By: /s/ Mindy Grossman Mindy Grossman Chief Executive Officer

  • Page 83
    ... Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HSN, Inc. Date: February 20, 2014 By: /s/ Judy A. Schmeling Judy A. Schmeling Chief Financial Officer and Chief Operating Officer

  • Page 84