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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________________________________________________________________________________
FORM 10-K
______________________________________________________________________________________________
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014
Commission File No. 001-34061
________________________________________________________________________________________________
HSN, INC.
(Exact name of registrant as specified in its charter)
________________________________________________________________________________________________
Delaware 26-2590893
(State or other jurisdiction of
incorporation or organization) (I.R.S. Employer
Identification No.)
1 HSN Drive, St. Petersburg, Florida 33729
(Address of principal executive offices) (Zip Code)
(727) 872-1000
(Registrant’s telephone number, including area code)
________________________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of exchange on which registered
Common Stock, par value $0.01
Series A Junior Participating
Preferred Stock Purchase Rights
NASDAQ Global Select Market
NASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act: None
________________________________________________________________________________________________
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes
No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, an Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter
period that the registration was required to submit and post such files). Yes No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company as defined in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
The aggregate market value of the registrant’s outstanding common stock held by non-affiliates as of June 30, 2014 (the registrant’s
most recently completed second fiscal quarter), was $1,889,878,508 (based on a closing price of $59.24 per share for the registrant’s common
stock on the NASDAQ Global Select Market).
As of February 25, 2015, the registrant had 52,430,415 shares of common stock, $0.01 par value per share, outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement for the 2015 Annual Meeting of Shareholders to be filed with the U.S. Securities and Exchange
Commission no later than 120 days after the end of the registrant’s 2014 fiscal year end are incorporated by reference into Items 10, 11, 12, 13
and 14 of Part III of this Form 10-K.

Table of contents

  • Page 1
    ... HSN, INC. Delaware (State or other jurisdiction of incorporation or organization) 26-2590893 (I.R.S. Employer Identification No.) 1 HSN Drive, St. Petersburg, Florida (Address of principal executive offices) 33729 (Zip Code) (727) 872-1000 (Registrant's telephone number, including area code...

  • Page 2
    ... ABOUT MARKET RISK ...ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ...ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE ...ITEM 9A. CONTROLS AND PROCEDURES...ITEM 9B. OTHER INFORMATION ...PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE...

  • Page 3
    ... of customer, employee or company information, or the failure to comply with various laws applicable to HSNi in the event of such a breach; HSNi's business prospects and strategy, including whether HSNi's initiatives will be effective; our ability to offer new or alternative products and services...

  • Page 4
    ... and top brand names to its customers primarily through television home shopping programming on the HSN television networks and other direct-response television marketing, through its business-to-consumer digital commerce site HSN.com, through mobile applications and through its outlet stores. HSN...

  • Page 5
    ... its Cornerstone brands. HSN Overview HSN includes the HSN television networks and other direct-response television marketing; its related website, HSN.com; its mobile applications and a limited number of outlet stores. The HSN television network broadcasts live, customer interactive home shopping...

  • Page 6
    ...overlap in the product offerings, the home brands are comprised of Frontgate, Ballard Designs, Grandin Road and Improvements. The apparel brands are comprised of Garnet Hill, TravelSmith and Chasing Fireflies. There are also 11 retail and outlet stores located throughout the United States. Frontgate...

  • Page 7
    ... information, online design centers, gift registries and travel centers, as well as a feature that allows customers to browse the related catalog online. In addition, a growing number of customers use mobile devices to shop the Cornerstone brands. Supply HSN and Cornerstone purchase products...

  • Page 8
    ... establish and manage personal accounts. Customers may communicate directly with customer service via e-mail or by telephone with call center representatives available seven days a week. Government Regulation We market and offer a broad range of merchandise through television, online, catalogs and...

  • Page 9
    ..., the provision of online payment services and electronic contracts. While U.S. Supreme Court decisions generally restrict the imposition of obligations to collect state and local sales and use taxes with respect to sales from out-ofstate retailers, an increasing number of states have adopted or are...

  • Page 10
    ... from large department stores to specialty shops, electronic retailers, direct marketing retailers, mail order and catalog companies, infomercial retailers, wholesale clubs and discount retailers. In addition, the HSN television networks compete for access to customers and audience share with other...

  • Page 11
    ... assortment, price, shipping terms and quality of the merchandise we offer for sale or to keep pace with competitors in our marketing, service, location, reputation, credit availability and technologies, could have a material adverse effect. We depend on relationships with pay television operators...

  • Page 12
    ... to emerging technologies or changes in consumer behavior could have an adverse impact on our competitive position, business and results of operations. A prolonged or permanent inability to broadcast the HSN television networks would result in lost customers and lost sales. Our success is dependent...

  • Page 13
    ... over public networks. We have observed an increased number of cyber attacks that include attempts to gain unauthorized access to digital systems for purposes of misappropriating assets or sensitive information. Our failure, and/or the failure by the various third party vendors and service providers...

  • Page 14
    ... merchandise to customers and the mailing of catalogs, which over the past few years have experienced volatility in comparison to historical levels. Variations in the mix and quantity of products we sell impact the cost to ship our products as do the shipping promotions we frequently offer to drive...

  • Page 15
    ...could result in unplanned losses. HSN offers Flexpay, a program which customers may pay for certain merchandise in two to six interest-free, monthly credit or debit card installments. This is an effective tool for driving sales, primarily for higher-priced items. We maintain allowances for estimated...

  • Page 16
    ..., which could adversely affect our business, financial condition and results of operations. Moreover, unfavorable changes in the laws, rules and regulations applicable to us could decrease demand for merchandise offered by us, negatively impact our marketing efforts, increase costs, subject us to...

  • Page 17
    ...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...

  • Page 18
    ... per share sales prices of our common stock, as reported by the NASDAQ Global Select Market, and the dividends declared for the periods indicated. Sales Price Fiscal 2014 Fourth Quarter...Third Quarter ...Second Quarter ...First Quarter ...Fiscal 2013 Fourth Quarter...Third Quarter ...Second Quarter...

  • Page 19
    ...depicted below compares the five-year performance of our common stock with the cumulative total return on the S&P 500 Retailing Index and the Russell 2000 Index from December 31, 2009 through December 31, 2014. 12/31/2009 HSN, Inc...S&P 500 Retailing Index ...Russell 2000 Index ...100.00 100.00 100...

  • Page 20
    ... of Financial Condition and Results of Operations," and our audited consolidated financial statements and related notes included herein. For information about the shares used in computing earnings per share, see Note 10 of Notes to Consolidated Financial Statements. Year Ended December 31, 2014...

  • Page 21
    ... of catalogs, digital sites and retail and outlet stores. Cornerstone consists of the brands of Ballard Designs, Chasing Fireflies, Frontgate, Garnet Hill, Grandin Road, Improvements and TravelSmith. Products HSNi sells a wide array of merchandise across its various channels of distribution. HSN...

  • Page 22
    ... prior year. Digital sales were tempered in the first quarter by the launch of the digital site redesign across all HSN digital platforms while HSN implemented its new technology and our customers acclimated themselves with the new website design and capabilities. The return rate decreased 80 basis...

  • Page 23
    ...changes in product mix. Catalog circulation increased 5% to 318.2 million compared to the prior year. The brand mix at Cornerstone is provided in the table below: Year Ended December 31, 2014 Home brands (Ballard Designs, Frontgate, Grandin Road and Improvements) ...Apparel brands (Chasing Fireflies...

  • Page 24
    ... product mix and selective price increases. Selling and Marketing Expense Selling and marketing expense consists primarily of advertising and promotional expenditures, compensation and other employee-related costs (including stock-based compensation) for personnel engaged in customer service, sales...

  • Page 25
    ... and other employee-related costs (including stock-based compensation) for personnel engaged in finance, legal, tax, human resources, information technology and executive management functions, bad debts, facilities costs and fees for professional services. Year Ended December 31, 2014 HSN ...As...

  • Page 26
    ...-cash charges) were 23.2% of net sales compared to 23.7% in the prior year. Decreases in HSN's professional services fees and bad debt expense were offset by increases in employee-related and digital marketing costs. Cornerstone Cornerstone's Adjusted EBITDA in 2014 decreased 31%, or $23.4 million...

  • Page 27
    ...to increases in employee-related costs, catalog costs and digital marketing; partially offset by a $7.8 million sales tax settlement at Cornerstone in the prior year and decreases in professional services fees and bad debt expenses at HSN. Other Income (Expense) Year Ended December 31, 2014 Interest...

  • Page 28
    ... the Home brands, to support their new initiatives. The growth in accounts receivable was primarily due to HSN's sales growth and an increase in its offering of Flexpay, an installment program allowing customers to pay for select merchandise in two to six interest-free, monthly payments. Consistent...

  • Page 29
    ... allows HSNi to purchase 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 depends on a variety of factors, including the stock price, corporate and regulatory requirements...

  • Page 30
    ... by seasonality, although historically our business has exhibited less seasonality than many other retail businesses. Our sales levels are generally higher in the fourth quarter. Reported revenues in the fourth quarter were 31% of total reported annual revenues in 2014 and 30% in 2013 and 2012. 28

  • Page 31
    ... At the time of an acquisition, the intangible assets of the acquired company, such as distribution agreements, customer relationships and merchandise agreements, are valued and amortized over their estimated lives. Depreciation, gains and losses on asset dispositions and long-lived asset impairment...

  • Page 32
    ... (but not limited to): macroeconomic, industry and market conditions; cost factors affecting the business; the overall financial performance of the business; any relevant changes in management, strategies or customers; and any sustained decreases in its stock price. If HSNi determines based on this...

  • Page 33
    ... of restricted stock units is determined based on the number of shares granted and the closing price of our common stock at the grant date. The fair value of stock options, stock appreciation rights and options granted under our employee stock purchase plan are estimated on the grant date using the...

  • Page 34
    ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Consolidated Financial Statements Page Report of Independent Registered Certified Public Accounting Firm ...Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012 ...Consolidated Statements of ...

  • Page 35
    ... with the standards of the Public Company Accounting Oversight Board (United States), HSN, Inc. and subsidiaries' internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring...

  • Page 36
    HSN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Years Ended December 31, 2014 Net sales ...Cost of sales ...Gross profit ...Operating expenses: Selling and marketing ...General and administrative ...Depreciation and amortization...Total ...

  • Page 37
    ... 31, 2014 Net income ...Other comprehensive (loss) income, net of tax: Change in fair value of derivative instrument ...Other comprehensive (loss) income, net of tax ...Comprehensive income ...$ (227) (227) 172,757 $ 825 825 179,274 $ (471) (471) 130,204 $ 172,984 $ 2013 178,449 $ 2012 130,675...

  • Page 38
    ...Other long-term liabilities ...Total liabilities ...Commitments and contingencies (Note 13) SHAREHOLDERS' EQUITY: Preferred stock $0.01 par value; 25,000,000 authorized shares; no issued shares ...Common stock $0.01 par value; 300,000,000 authorized shares; 52,425,895 and 53,002,368 issued shares as...

  • Page 39
    ...-based compensation awards, including tax benefit of $8,293 ...Repurchases of common stock . . Balance as of December 31, 2014 - - - - - Amount $ - - - - - Common Stock Shares 58,414 - - - - Amount $ 584 - - - - Additional Paid-in Capital $ 2,180,112 - - 14,440 (31,049) Accumulated Deficit 130...

  • Page 40
    ... sale of discontinued operations ...Other...Net cash used in investing activities attributable to continuing operations ...Cash flows from financing activities attributable to continuing operations: Redemption of Senior Notes ...Borrowing under term loan ...Repayments of long-term debt ...Payments...

  • Page 41
    ... Designs, Chasing Fireflies, Frontgate, Garnet Hill, Grandin Road, Improvements and TravelSmith; (iii) websites, which consist primarily of HSN.com and the seven branded websites operated by Cornerstone; (iv) mobile devices; and (v) retail and outlet stores. HSNi's television home shopping business...

  • Page 42
    ... and credit card companies, net of an allowance for doubtful accounts. HSN provides extended payment terms to its customers on certain products known as Flexpay. Revenue is recorded when delivery to the customer has occurred, at which time HSN collects the first payment, sales tax and all shipping...

  • Page 43
    ...December 31, 2014, 2013 and 2012, respectively, and is included in "Depreciation and amortization" expense in the accompanying consolidated statements of operations. Goodwill and Indefinite-Lived Intangible Assets Goodwill acquired in business combinations is assigned to the reporting units that are...

  • Page 44
    ... Label Credit Card HSN's credit card program offers eligible customers a private label credit card. All cardholders receive certain rewards and benefits which are designed to recognize and promote client loyalty. HSN designs, executes and administers marketing programs to promote usage of the card...

  • Page 45
    made through the private label credit card represented 31%, 28% and 27% of HSN's business in 2014, 2013 and 2012, respectively. In November 2013, HSN extended its agreement with the sponsoring bank through 2020. As with the original agreement, HSN received an upfront signing bonus from the ...

  • Page 46
    ..., 2014 ...As of December 31, 2013 ...$ $ 3,859 3,800 $ $ Accumulated Amortization (3,705) $ (3,149) $ Net Goodwill In the second quarter of 2012, $9.9 million of goodwill was recorded in connection with the acquisition of Chasing Fireflies which was allocated to the Cornerstone reporting unit. No...

  • Page 47
    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, 2014 and 2013 (in thousands): Gross Balance as of January 1, 2014 HSN ...Cornerstone ...Total ...$ $ 2,391,594 502,464 2,894,058 $ $ ...

  • Page 48
    ... information in a manner consistent with how the chief operating decision maker and executive management view the businesses, how the businesses are organized as to segment management, and the focus of the businesses with regards to the types of products or services offered or the target market...

  • Page 49
    ... customers for each product or each group of similar products as it is impracticable to do so. HSNi maintains operations principally in the United States with no long-lived assets and insignificant net sales in all other countries. NOTE 7-LONG-TERM DEBT December 31, 2014 Secured credit agreement...

  • Page 50
    ... costs and original issue discount. NOTE 8-DERIVATIVE INSTRUMENTS HSNi uses derivatives in the management of its interest rate risk with respect to its variable rate debt. HSNi's strategy is to eliminate the cash flow risk on a portion of its variable rate debt caused by changes in the benchmark...

  • Page 51
    ... of interest expense and interest payments on HSNi's long-term variable rate debt. The fair value is based on a valuation model which utilizes interest rate yield curves and credit spreads as the significant inputs to the model. These inputs are observable in active markets (level 2 criteria). HSNi...

  • Page 52
    ... 31, 2014, 2013 and 2012, diluted earnings per share was computed using the number of shares of common stock outstanding and assumed to be 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...

  • Page 53
    ... Amended and Restated 2008 Stock and Annual Incentive Plan, as amended (the "Plan"), authorizes the issuance of 8.0 million shares of HSNi common stock for new awards granted by HSNi. The purpose of the Plan is to assist HSNi in attracting, retaining and motivating officers, employees, directors and...

  • Page 54
    ...Plan is measured at the grant date as the fair market value of HSNi's common stock and expensed ratably over the vesting term. The RSUs are generally subject to service-based vesting over a term of 3 years to 5 years. A summary of the status of the nonvested RSUs, as of December 31, 2014 and changes...

  • Page 55
    ... Plan during the years ended December 31, 2014, 2013 and 2012 at market prices equal to HSNi's common stock on the grant date were $15.24, $22.57, and $12.96, respectively. At the date of the Spin-off, HSNi granted approximately 719,000 stock options to its Chief Executive Officer at exercise prices...

  • Page 56
    ... simulation pricing model which estimates the potential outcome of reaching the market condition based on simulated future stock prices. The weighted average assumptions used in the valuation of the MSUs were the following: volatility factor of 39.7%, risk-free interest rate of 1.00%, expected term...

  • Page 57
    ...grant date using the Black-Scholes option pricing model. The following are the weighted average assumptions used in the valuation of the ESPP options for the years ended December 31, 2014 and 2013: Year Ended December 31, 2014 Volatility factor ...Risk-free interest rate ...Expected term ...Dividend...

  • Page 58
    .... At December 31, 2014 and 2013, HSNi has no material accrual for the payment of interest or penalties. HSNi believes that it is reasonably possible that its unrecognized tax benefits could decrease by an immaterial amount within twelve months of the current reporting date due to settlement with the...

  • Page 59
    ... result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. HSNi leases a satellite transponder, warehouse and office space, equipment and services used in connection with its operations under various operating leases...

  • Page 60
    ... of credit ("LOCs") primarily consist of trade LOCs, which are used for inventory purchases. Trade LOCs are guarantees of payment based upon the delivery of goods. The surety bonds primarily consist of customs bonds, which relate to the import of merchandise into the United States. The purchase...

  • Page 61
    ... combination, which merger or business combination has been approved by HSNi; transfers in a public offering in a manner designed to result in a wide distribution, provided that no such transfer is made, to the knowledge of the Liberty Parties, to any person whose ownership percentage (based on...

  • Page 62
    ... 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...

  • Page 63
    ... to purchase 10 million shares of its common stock from time to time through privately negotiated and/or open market transactions. For the year ended December 31, 2014, HSNi acquired approximately 1.0 million shares of outstanding common stock for $55.5 million under the program at an average price...

  • Page 64
    NOTE 18-ACQUISITION In April 2012, HSNi, through Cornerstone, acquired substantially all of the assets and liabilities of Chasing Fireflies, LLC, a leading direct-to-consumer premium children's and family lifestyle brand. The purchase price was $22.9 million in cash and contingent consideration ...

  • Page 65
    ... increased diluted earnings per share by $0.03. (d) The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share...

  • Page 66
    ...2014, 2013 and 2012, 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 earn investment returns based on a select number...

  • Page 67
    ...was increased. Approximately 452,000 additional awards were issued as a result of the special dividend. These adjustments did not result in additional stock-based compensation expense, as the fair value of the outstanding awards did not change. As further required by the Plans, the maximum number of...

  • Page 68
    ...,554 5,293 Description 2014 Allowance for doubtful accounts ...Sales return accrual ...Deferred tax valuation allowance ...2013 Allowance for doubtful accounts ...Sales return accrual ...Deferred tax valuation allowance ...2012 Allowance for doubtful accounts ...Sales return accrual ...Deferred tax...

  • Page 69
    ...we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and to ensure that information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer...

  • Page 70
    ... the Exchange Act, our management, including our Chief Executive Officer and our Chief Financial Officer, also conducted an evaluation of our internal control over financial reporting to determine whether any changes occurred during the quarter ended December 31, 2014 that have materially affected...

  • Page 71
    ...respects, effective internal control over financial reporting as of December 31, 2014, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of HSN, Inc. and subsidiaries as...

  • Page 72
    ITEM 9B. None. OTHER INFORMATION PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Incorporated by reference from our Proxy Statement for our 2015 Annual Meeting of Shareholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2014. ITEM...

  • Page 73
    ... to the Company's Quarterly Report on 2012, among HSN, Inc., as Issuer, the Guarantors Form 10-Q filed May 2, 2012 listed on Appendix I and Appendix II, and The Bank of New York Mellon Trust Company, N.A., as Trustee Separation and Distribution Agreement, dated August 20, 2008, by and among HSN, Inc...

  • Page 74
    ... Report on Form 8-K (SEC File No. 0-20570) dated May 16, 2008 and incorporated herein by reference 10.5 10.6 10.7 Credit Agreement dated as of April 24, 2012, among Exhibit 10.1 to the Company's Current Report on HSN, Inc., as Borrower; Bank of America, N.A., as Form 8-K filed April 25, 2012...

  • Page 75
    ... Restricted Stock Unit Agreement* Named Executive Officer and EVP Severance Plan* Executive Severance Plan* Form of Performance Cash Award Agreement* Employee Stock Purchase Plan Form of Deferred Share Unit Agreement* Form of Performance Award Agreement* Form of Market Stock Unit Agreement* HSN, Inc...

  • Page 76
    ...of the Chief Financial Officer pursuant to Filed herewith 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act The following financial information from HSNi's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, formatted in XBRL (eXtensible Business...

  • Page 77
    ... Accounting Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated as of February 26, 2015. /S/ Mindy Grossman Mindy Grossman Chief Executive Officer...

  • Page 78
    ... 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. The following financial information from HSNi's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, formatted in XBRL (eXtensible Business Reporting Language) and filed electronically...

  • Page 79
    ... the terms, definitions, and provisions of this Agreement and the Company's Second Amended and Restated 2008 Stock and Annual Incentive Plan, as amended, (the "Plan"), the Company hereby grants to the Grantee as of the Award Date a stock appreciation right with respect to the total number of shares...

  • Page 80
    ... notices and other communications under this Agreement shall be in writing and shall be given by overnight courier; registered or certified mail, return receipt requested, postage prepaid; hand delivery to the other party; corporate assigned email; personal address provided to the Company or Agent...

  • Page 81
    ... last provided by the Grantee to the Company's Human Resources Department or the Agent. If to the Company: HSN, Inc. 1 HSN Drive St. Petersburg, FL 33729 Attention: General Counsel Facsimile: (727) 872-1000 or to such other address or facsimile number as any party shall have furnished to the other...

  • Page 82
    ...and the right to change, the Relevant Information. Relevant Information will only be used in accordance with applicable law. IN WITNESS WHEREOF, as of the date first above written, the Company has caused this Agreement to be executed on its behalf by a duly authorized officer. Your acceptance of the...

  • Page 83
    ...and Vesting of RSUs (a) Subject to the terms, definitions and provisions of this Agreement and the Company's Second Amended and Restated 2008 Stock and Annual Incentive Plan, as amended (the "Plan"), the Company hereby grants to the Grantee the number of restricted stock units set forth in the Grant...

  • Page 84
    ... and other communications under this Agreement shall be in writing and shall be given by overnight courier; registered or certified mail, return receipt requested, postage prepaid; hand delivery to the other party; corporate assigned email address; personal address provided to the Company or Agent...

  • Page 85
    ... last provided by the Grantee to the Company's Human Resources Department or the Agent. If to the Company: HSN, Inc. 1 HSN Drive St. Petersburg, FL 33729 Attention: General Counsel Facsimile: (727) 872-1000 or to such other address or facsimile number as any party shall have furnished to the...

  • Page 86
    ...and the right to change, the Relevant Information. Relevant Information will only be used in accordance with applicable law. IN WITNESS WHEREOF, as of the date first above written, the Company has caused this Agreement to be executed on its behalf by a duly authorized officer. Your acceptance of the...

  • Page 87
    ...206,530 5.2 $ 277,527 $ 2013 276,141 $ 2012 219,870 $ 2011 207,758 $ 2010 166,618 The Ratio of Earnings to Fixed Charges should be read in conjunction with the Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10...

  • Page 88
    ...Home Shopping Network En Espanol, L.L.C...HSN Catalog Services, Inc...HSN Fulfillment LLC ...HSN Holding LLC ...HSN Improvements LLC ...HSN Interactive LLC ...HSNi, LLC ...HSN of Nevada LLC...HSN Realty LLC ...Ingenious Designs LLC ...NLG Merger Corp...S&N Operations, LLC ...The Cornertone Brands...

  • Page 89
    ... to the Employee Stock Purchase Plan of HSN, Inc.; of our reports dated February 26, 2015, with respect to the consolidated financial statements and schedule of HSN, Inc., and the effectiveness of internal control over financial reporting of HSN, Inc., included in this Annual Report (Form 10...

  • Page 90
    ...in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who...

  • Page 91
    ...in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who...

  • Page 92
    ... 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HSN, Inc. Date: February 26, 2015 By: /s/ Mindy Grossman Mindy Grossman Chief Executive Officer

  • Page 93
    ... Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HSN, Inc. Date: February 26, 2015 By: /s/ Judy A. Schmeling Judy A. Schmeling Chief Financial Officer and Chief Operating Officer