Home Shopping Network 2013 Annual Report Download - page 17

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The market price and trading volume of our common stock may be volatile and may face negative pressure.
Our stock price has experienced, and could continue to experience in the future, substantial volatility as a result of many
factors, including persistent adverse macroeconomic conditions, broad market fluctuations and public perception of the
prospects for the retail industry. Our failure to meet market expectations would also likely result in a decline 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 of approximately 600,000 square feet of
office space and include executive offices, television studios, showrooms, broadcast facilities and administrative offices for
HSN. HSN leases the HSN fulfillment centers in Piney Flats, Tennessee; Fontana, California; Roanoke, Virginia; and
Ronkonkoma, New York; as well as four outlet stores and other properties in various locations in the United States for
administrative offices and data centers pursuant to leases that expire in 2014 through 2023. Cornerstone owns an office and
storage facility in Franconia, New Hampshire. Otherwise, Cornerstone leases its properties, consisting of administrative offices,
retail outlets, fulfillment centers and photo centers in West Chester, Ohio; Phoenix, Arizona; and Tukwila, Washington.
Cornerstone also has 10 retail stores and outlets and other administrative offices in various locations throughout the United
States, all pursuant to leases with expiration dates ranging from 2014 to 2020.
HSNi believes that the duration of each lease is adequate and does not anticipate any future problems renewing or
obtaining suitable leases for its principal properties. HSNi believes that its principal properties, whether owned or leased, are
currently adequate for the purposes for which they are used and are suitably maintained for these purposes. From time to time,
HSNi considers various alternatives related to its long term facilities needs. While HSNi management believes existing
facilities are adequate to meet its short term needs, it may become necessary to lease or acquire additional or alternative space
to accommodate future growth.
ITEM 3. LEGAL PROCEEDINGS
In the ordinary course of business, we are involved in various legal matters arising out of our operations. These matters
may relate to claims involving property, personal injury, contract, intellectual property (including patent infringement), sales
tax, regulatory compliance and other claims. As of the date of this filing, we are not a party to any legal proceedings that are
reasonably expected to have a material adverse effect on our business, results of operations, financial condition or cash flows;
however, litigation matters are subject to inherent uncertainties and the results of these matters cannot be predicted with
certainty. An unfavorable resolution of one or more of these matters could have a material adverse effect on our business,
results of operations, financial condition or cash flows. Moreover, any claims or regulatory actions against us, whether
meritorious 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.
See Note 13 – Commitments and Contigencies in Part II, Item 8 for additional information regarding legal matters in
which we are involved.
ITEM 4. MINE SAFETY DISCLOSURES
Not Applicable.