Home Shopping Network 2013 Annual Report Download - page 65

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63
NOTE 20—RETIREMENT AND SAVINGS PLANS
Effective December 31, 2008, HSNi established the HSN, Inc. Retirement Savings Plan that qualifies under Section 401
(k) of the Internal Revenue Code. Participating employees may contribute up to 50% of their pretax salary, up to the statutory
limits. For the year ended December 31, 2013, HSNi contributed fifty cents for each dollar a participant contributed of the first
6% of a participant's deferrals. For the years ended December 31, 2012 and December 31, 2011, HSNi contributed twenty-five
cents for each dollar a participant contributed of the first 6% of a participant's deferrals. HSNi’s matching contributions were
$4.6 million, $2.0 million and $1.9 million for the years ended December 31, 2013, 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 of investment options, including equity and debt mutual funds. HSNi intends to invest comparable
amounts in marketable securities through life insurance policies to mitigate the risk associated with the investment return on the
employee deferrals. Assets related to the funded portion of the deferred compensation plan will be held in a rabbi trust which
remains subject to claims of the Company's general creditors. HSNi remains liable to the participants for the unfunded portion
of the plan. HSNi will record changes in the fair value of the asset and liability in the statement of operations.