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50
NOTE 10—EARNINGS PER SHARE
HSNi computes basic earnings per share using the weighted average number of common shares outstanding for the
period. HSNi computes diluted earnings per share using the treasury stock method, which includes the weighted average
number of common shares outstanding for the period plus the potential dilution that could occur if various equity awards to
issue common stock were exercised or restricted equity awards were vested resulting in the issuance of common stock that
could share in HSNi’s earnings.
Basic Earnings Per Share
For the years ended December 31, 2013, 2012 and 2011, basic 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 the year and, if dilutive, the incremental common stock that HSNi would issue upon
the assumed exercise of stock options and stock appreciation rights and the vesting of restricted stock units using the treasury
stock method.
The following table presents HSNi’s basic and diluted earnings per share (in thousands, except per share data):
Year Ended December 31,
2013 2012 2011
Net income
Continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 178,449 $ 136,497 $ 127,652
Discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (5,822) (4,582)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 178,449 $ 130,675 $ 123,070
Weighted average number of shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,640 56,314 58,636
Dilutive effect of stock-based compensation awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,217 1,642 2,053
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,857 57,956 60,689
Net income (loss) per share - basic:
Continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.33 $ 2.42 $ 2.18
Discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (0.10) (0.08)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.33 $ 2.32 $ 2.10
Net income (loss) per share - diluted:
Continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.25 $ 2.36 $ 2.10
Discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (0.11) (0.07)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.25 $ 2.25 $ 2.03
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 1,276 911