Home Shopping Network 2013 Annual Report Download - page 62

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NOTE 15—SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental Disclosure of Cash Flow Information:
Year Ended December 31,
2013 2012 2011
(in thousands)
Cash paid during the period for:
Income tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 92,502 $ 52,709 $ 73,847
Income tax refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,061) (10) (1,806)
Interest payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,230 29,985 29,198
Non-cash financing activities:
Effective portion of change in interest rate swap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,296 755 —
NOTE 16—SHAREHOLDERS’ EQUITY
Stock Purchase Rights
In December 2008, HSNi’s Board of Directors approved the creation of a Series A Junior Participating Preferred Stock,
adopted a shareholders rights plan and declared a dividend of one right for each outstanding share of common stock held by our
shareholders of record as of the close of business on January 5, 2009. The rights attached to any additional shares of common
stock issued after January 5, 2009. Initially, these rights, which trade with the shares of HSNi’s common stock, will not be
exercisable. Under the rights plan, these rights will be exercisable if a person or group acquires or commences a tender or
exchange offer for 15% or more of HSNi’s common stock (except for certain grandfathered persons, such as Liberty, to which
higher thresholds apply). If the rights become exercisable, each right will permit 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
Directors.
Share Repurchase Program
On September 27, 2011, HSNi’s Board of Directors approved a share repurchase program which 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 requirements, restrictions under HSNi’s debt obligations and other market
and economic conditions. The repurchase program may be suspended or discontinued by HSNi at any time. For the year ended
December 31, 2013, HSNi acquired approximately 2.7 million shares of outstanding common stock for $146.9 million under
the program at an average price of $53.67. For the year ended December 31, 2012, HSNi acquired approximately 5.5 million
shares of outstanding common stock for $220.6 million under the program at an average price of $40.40. All shares were
immediately retired upon purchase.
Dividend Policy
During the year ended December 31, 2013, HSNi's Board of Directors approved four quarterly cash dividends totaling
$0.79 per common share resulting in aggregate dividend payments of approximately $42.3 million. During the year ended
December 31, 2012, HSNi’s Board of Directors approved the initial quarterly cash dividend of $0.555 per common share
resulting in a dividend payment of approximately $31.0 million.
In February 2014, HSNi's Board of Directors approved a quarterly cash dividend of $0.25 per common share. The
dividend will be paid on March 19, 2014 to HSNi's record holders as of March 5, 2014.