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44
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
Accumulated
Impairment
Net Balance as of
January 1, 2013 Additions Impairment
Net Balance as of
December 31,
2013
HSN . . . . . . . . . . . . . . . . . . . $ 2,391,594 $ (2,391,594) $ — $ — $ — $ —
Cornerstone . . . . . . . . . . . . . 502,464 (492,606) 9,858 — — 9,858
Total . . . . . . . . . . . . . . . . . $ 2,894,058 $ (2,884,200) $ 9,858 $ — $ — $ 9,858
Gross Balance as
of January 1,
2012
Accumulated
Impairment
Net Balance as of
January 1, 2012 Additions Impairment
Net Balance as of
December 31,
2012
HSN . . . . . . . . . . . . . . . . . . . $ 2,391,594 $ (2,391,594) $ — $ — $ — $ —
Cornerstone . . . . . . . . . . . . . 492,606 (492,606) — 9,858 — 9,858
Total . . . . . . . . . . . . . . . . . $ 2,884,200 $ (2,884,200) $ — $ 9,858 $ — $ 9,858
NOTE 4—PROPERTY AND EQUIPMENT
The balance of property and equipment, net, is as follows (in thousands):
December 31,
2013 2012
Capitalized software. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 215,893 $ 196,529
Computer and broadcast equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,521 83,038
Buildings and leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,437 98,241
Furniture and other equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,779 79,748
Projects in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,528 18,494
Land and land improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,460 10,734
510,618 486,784
Less: accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (331,898) (315,481)
Total property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 178,720 $ 171,303
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 2013 related to the
indefinite-lived intangible assets of Chasing Fireflies, HSNi assessed if there was an impairment of any of this brand’s long-
lived assets and determined that there was none. 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,
2013 2012
Accrued sales returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,072 $ 40,554
Accrued cable and satellite distribution fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,452 23,874
Accrued freight and fulfillment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,646 23,979
Accrued compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,567 53,635
Other accrued expenses and current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,247 73,347
Total accrued expenses and other current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 207,984 $ 215,389