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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, 2015
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, 2015 (the registrant’s
most recently completed second fiscal quarter), was $2,270,612,809 (based on a closing price of $70.19 per share for the registrant’s common
stock on the NASDAQ Global Select Market).
As of February 23, 2016, the registrant had 52,276,850 shares of common stock, $0.01 par value per share, outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement for the 2016 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 2015 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
    ... File No. 001-34061 _____ (Exact name of registrant as specified in its charter) _____ 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...

  • 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
    ... 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 sites HSN.com and joymangano.com, through mobile applications, through its outlet...

  • Page 5
    ... marketing; its related website, HSN.com; its mobile applications, a limited number of outlet stores and its wholesale distribution of certain proprietary products to other retailers. The HSN television network broadcasts customer interactive home shopping programming 24 hours a day, seven days...

  • 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 14 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
    ... product. Merchandise may be purchased online, through mobile devices, or ordered using toll free phone numbers through live sales and service agents. HSN also offers the convenience of an automated attendant system and, in limited markets, remote control ordering capabilities through pay television...

  • 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
    ..., 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 conventional forms of entertainment and content. The price and availability of programming for pay...

  • 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
    ...and entertainment time of consumers. The advent of digital compression technologies and the adoption of digital cable has resulted in increased channel capacity. In addition, there are now more programming options available to the viewing public in the form of new television networks and alternative...

  • 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
    ... to ship our products as do the shipping promotions we frequently offer to drive revenues. We currently expect that shipping and postal rates will continue to increase as well as the trend towards free shipping in the directto-consumer marketplace. In the case of deliveries to customers, we believe...

  • Page 15
    ... manage our Flexpay program 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...

  • Page 16
    ... to which higher thresholds apply). If the rights become exercisable, each right will permit the 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...

  • 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
    ... stock trades on the NASDAQ Global Select Market under the symbol HSNI. The table below sets forth the high and low 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 2015 Fourth Quarter...

  • Page 19
    ... 0.1 million shares at an average price of $50.05 per share. Below is a summary of our common stock repurchases during the fourth quarter of 2015, as well as the number of shares still available for purchase as of December 31, 2015: Number of Shares Purchased as Part of Publicly Announced Plans or...

  • Page 20
    ... HSN, Inc...Russell 2000 Index...S&P 500 Retailing Index ...S&P Retail Select Industry Index ...100.00 100.00 100.00 100.00 12/31/2011 118.72 95.82 104.33 109.89 12/31/2012 ...182.67 111.49 131.90 132.83 12/31/2013 209.58 154.78 191.96 189.46 12/31/2014 260.28 162.35 213.33 208.83 12/31/2015...

  • Page 21
    ... income per share: Basic ...Diluted ...Shares used in computing earnings per share: Basic ...Diluted ...Dividends declared per common share ...Balance Sheet Data (end of period) (b): Working capital ...Total assets...Total debt, including current maturities...Other long-term liabilities, including...

  • Page 22
    ... seven branded websites operated by Cornerstone; (iii) retail and outlet stores; and (iv) mobile devices. Sources of Revenue HSN revenue includes merchandise sales originating from the live television broadcasts of its programming 24 hours per day, seven days a week; HSN2, a network that primarily...

  • Page 23
    ...as jewelry, to merchandise with lower return rates, such as electronics. Units shipped in 2015 increased 3% to 49.8 million. The average price point decreased 1% to $58.61. Sales from HSN's wholesale business increased in 2015 driven by an expanded product assortment sold to additional retail stores...

  • Page 24
    ... to 13.1%. Catalog circulation increased 2% to 325.1 million compared to the prior year. The brand mix at Cornerstone is provided in the table below: Year Ended December 31, 2015 Home brands (Ballard Designs, Frontgate, Grandin Road and Improvements) ...Apparel brands (Chasing Fireflies, Garnet Hill...

  • Page 25
    ... in customer service, sales and merchandising, production and programming functions, on-air distribution costs and marketing partnership programs. Advertising and promotional expenditures primarily include catalog production and distribution costs and online marketing, including fees paid to search...

  • Page 26
    ... 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, 2015 HSN ...As a percentage of HSN net sales ...Cornerstone...

  • Page 27
    ... centers, and information and digital technology. Adjusted EBITDA Adjusted EBITDA is a non-GAAP measure and is defined in Note 6 of Notes to Consolidated Financial Statements. Year Ended December 31, 2015 HSN ...As a percentage of HSN net sales ...Cornerstone ...As a percentage of Cornerstone...

  • Page 28
    ... costs for the planned closure of a distribution center and for the HSN reorganization; bad debt expense; $6.7 million impairment of intangibles related to Chasing Fireflies; media spend for direct-response television marketing; and catalog costs; partially offset by lower on-air distribution costs...

  • Page 29
    ... return plan and related refinancing. HSNi paid a special cash dividend of $10.00 per common share in February 2015 and quarterly cash dividends totaling $1.40 per common share, representing aggregate payments of $597.9 million. HSNi also repurchased approximately 948,000 shares of common stock...

  • Page 30
    ... expenditures for fiscal 2016 are planned at approximately $60 million to $70 million and primarily relate to our investments in our distribution centers, including our warehouse automation project; information technology; Cornerstone's retail store expansion and digital commerce. HSNi's ability to...

  • Page 31
    ... less seasonality than many other retail businesses. Our sales levels are generally higher in the fourth quarter. Reported revenues in the fourth quarter were 30%, 31% and 30% of total reported annual revenues in 2015, 2014 and 2013, respectively. Non-GAAP Measure HSNi reports Adjusted EBITDA as...

  • Page 32
    ... including (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...

  • Page 33
    ... 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 Black-Scholes option pricing model. This model...

  • Page 34
    ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK At December 31, 2015 and 2014, HSNi's outstanding long-term debt was $640.0 million and $228.1 million, respectively, all of which pays interest at a variable rate, generally tied to LIBOR. The increase in HSNi's outstanding ...

  • Page 35
    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, 2015, 2014 and 2013 ...Consolidated Statements of ...

  • Page 36
    ... material respects the information set forth therein. We also have audited, in accordance 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, 2015, based on criteria established...

  • Page 37
    HSN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Years Ended December 31, 2015 Net sales ...Cost of sales ...Gross profit ...Operating expenses: Selling and marketing ...General and administrative ...Depreciation and amortization...Total ...

  • Page 38
    HSN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Years Ended December 31, 2015 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 ...

  • Page 39
    ... debt, less current maturities ...Deferred income taxes ...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...

  • Page 40
    ... for equity awards ...Cash dividend declared on common stock ...Issuance of common stock from stock-based compensation awards, including tax benefit of $12,526 ...Repurchases of common stock . . Balance as of December 31, 2015 - - - - - Amount $ - - - - - Common Stock Shares 54,854 - - - - Amount...

  • Page 41
    ... used in investing activities ...Cash flows from financing activities: Borrowing under term loan ...Repayments of long-term debt ...Borrowings under revolving credit facility ...Repayments of revolving credit facility ...Payments of debt issuance costs...Repurchase of common stock...Cash dividends...

  • Page 42
    ...of HSN.com, joymangano.com and the seven branded websites operated by Cornerstone; (iv) mobile devices; (v) retail and outlet stores; and (vi) wholesale distribution of certain proprietary products to other retailers. HSNi's television home shopping business, related digital sales, outlet stores and...

  • Page 43
    ... 16.3%, and 17.0% in 2015, 2014, and 2013, respectively. Sales taxes collected are not included in revenue. HSN issues customer credits primarily for products returned outside of HSN's normal return policy. Revenues from these credits are recognized when (1) redeemed by the customer, or (2) it is...

  • Page 44
    ... companies, net of an allowance for doubtful accounts. HSNi accepts most credit and select debit cards. HSN provides extended payment terms to its qualified customers known as Flexpay. Revenue is recorded when delivery to the customer has occurred, at which time HSN collects the first payment, sales...

  • Page 45
    ... basis for awards with market or performance conditions. Tax benefits resulting from tax deductions in excess of the stock-based compensation expense recognized in the consolidated statements of cash flows are reported as a component of financing cash flows. HSNi issues new shares to satisfy equity...

  • Page 46
    ... and potential customers. These marketing programs are funded largely by the sponsoring bank. HSN also saves on interchange fees that it would incur if its customers used third-party cards. Purchases made through the private label credit card represented 34%, 31% and 28% of HSN's sales in 2015, 2014...

  • Page 47
    ... been acquired in a business combination and the estimated fair value of the reporting unit was the purchase price paid. The fair value of the reporting unit is determined by using a discounted cash flow analysis with consideration of an equity analysis based on the trading value of its common stock...

  • Page 48
    ...547,770 (353,881) 193,889 Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. There were no impairment charges related to HSNi's long-lived assets in fiscal 2015 or 2014. As we periodically reassess...

  • Page 49
    ... to segment management, and the focus of the businesses with regards to the types of products or services offered and/or the target market. HSNi has two operating segments, HSN and Cornerstone. The accounting policies of the segments are the same as those described in Note 2 - Summary of Significant...

  • Page 50
    ... the 2012 acquisition of Chasing Fireflies, one of the Cornerstone brands. Financial information by segment is as follows (thousands): Year Ended December 31, 2015 Net sales: HSN ...Cornerstone ...Total ...Identifiable assets: HSN ...Cornerstone ...Total ...Capital expenditures: HSN ...Cornerstone...

  • Page 51
    ....15x. The Credit Agreement also contains covenants that limit our ability and the ability of our subsidiaries to, among other things, incur additional indebtedness, pay dividends or make other distributions to third parties, repurchase or redeem our stock, make investments, sell assets, incur liens...

  • Page 52
    ... 515,000 640,000 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 interest rate (LIBOR...

  • Page 53
    ... 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 54
    ... outstanding and assumed to be outstanding for the period. Diluted Earnings Per Share For the years ended December 31, 2015, 2014 and 2013, 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...

  • Page 55
    ... December 31, 2015, after adjustment for the special cash dividend, there were approximately 2.8 million shares of common stock available for grants under the Plan. HSNi can grant restricted stock, restricted stock units ("RSUs"), market stock units ("MSUs"), stock options, stock appreciation rights...

  • Page 56
    ... employee behavior. Dividends yields are estimated based on HSNi's historical and anticipated dividend payments. The weighted average assumptions used in the Black-Scholes option pricing model are as follows: Year Ended December 31, 2015 Volatility factor ...Risk-free interest rate ...Expected term...

  • Page 57
    ... of the Plan related to the special cash dividend) to its Chief Executive Officer. The MSUs vest over performance periods of 3 years and 5 years (50% for each period). Payout percentages range between 0% and 200% of the target award depending on the awards' market condition, the future price of HSNi...

  • Page 58
    ...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, 2015 and 2014: Year Ended December 31, 2015 Volatility factor ...Risk-free interest rate ...Expected term ...Dividend yield...

  • Page 59
    ... of the income tax provision to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows (in thousands): Year Ended December 31, 2015 Income tax provision at the federal statutory rate of 35% ...State income taxes, net of effect...

  • Page 60
    ... 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 61
    ... 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 62
    ... 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 voting power) of HSNi's equity securities...

  • Page 63
    ..., 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...

  • Page 64
    ... share, at Cornerstone for impairment of intangible assets related to Chasing Fireflies. (d) The fourth quarter of 2015 includes $2.0 million, or $0.02 per diluted share, of severance costs associated with a reorganization at HSN. (e) The fourth quarter of 2014 includes $5.0 million of revenue...

  • Page 65
    ... WITH AN EXIT ACTIVITY As part of its supply chain optimization initiative designed to increase operational efficiencies and enhance customer service, HSNi announced in June 2015 its plan to close the HSN distribution center in Roanoke, Virginia and expand the capabilities of its distribution...

  • Page 66
    ... Description 2015 Allowance for doubtful accounts ...Sales return accrual ...Deferred tax valuation allowance ...2014 Allowance for doubtful accounts ...Sales return accrual ...Deferred tax valuation allowance ...2013 Allowance for doubtful accounts ...Sales return accrual ...Deferred tax valuation...

  • Page 67
    ...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 68
    ... 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, 2015 that have materially affected...

  • Page 69
    ...respects, effective internal control over financial reporting as of December 31, 2015, 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 70
    ITEM 9B. None. OTHER INFORMATION PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Incorporated by reference from our Proxy Statement for our 2016 Annual Meeting of Shareholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2015. ITEM...

  • Page 71
    ... Item 8. 2. Financial Statement Schedules. Financial statement schedules filed as part of this Form 10-K are listed under Item 8. All other schedules have been omitted because they are either not applicable or not required under the instructions contained in Regulation S-X because the information...

  • Page 72
    ... 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 73
    ... 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 74
    ...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, 2015, formatted in XBRL (eXtensible Business...

  • Page 75
    ... Annual Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated as of February 24, 2016. /S/ Mindy Grossman Mindy Grossman Chief Executive Officer and Director (Principal Executive Officer) Chief Financial Officer and Chief Operating Officer...

  • Page 76
    ... 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, 2015, formatted in XBRL (eXtensible Business Reporting Language) and filed electronically...

  • Page 77
    ... 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 78
    ... rights relating to its publicly listed and traded common stock ("Continuing SARs") by converting the SARs into a number of Continuing SARs having a value equal to the value of the SARs as of the date of the change based on the closing market price of the relevant reference shares as of the date...

  • Page 79
    .../digital retailing including, without limitation, QVC, EVINE (f/k/a Shop HQ), or World Shopping Source (aka WSS), or Jewelry Television, aka America's Collectibles Network, Inc., or ACNTV, as well as any company which subsequently enters the field of television retailing as its primary business...

  • Page 80
    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 in writing in accordance with this Section 8. Notices and communications shall be ...

  • Page 81
    ...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 82
    ... (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 Award Summary (the "RSUs...

  • Page 83
    ... of restricted stock units relating to its publicly listed and traded common stock ("Continuing RSUs") by converting the RSUs into a number of Continuing RSUs having a value equal to the value of the RSUs as of the date of the change based on the closing market price of the Company's Common Stock as...

  • Page 84
    .../ digital retailing including, without limitation, QVC, EVINE (f/k/a Shop HQ), or World Shopping Source (aka WSS), or Jewelry Television, aka America's Collectibles Network, Inc., or ACNTV, as well as any company which subsequently enters the field of television retailing as its primary business...

  • Page 85
    ..., or (ii) ambiguity in the Award Summary (or any information posted on the Morgan Stanley Stock Plan Connect System), this Agreement, the Plan and/or the books and records of the Company, as applicable, shall control. 15. Amendment The Company may modify, amend or waive the terms of the RSU award...

  • Page 86
    ... 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 benefits of this Agreement constitutes your acceptance to be bound by its terms. . HSN, INC. By: Maria Martinez Chief Human Resources...

  • Page 87
    ... 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 Performance Share Units ("PSUs") set forth in the Award Summary as the Target PSUs (the Target PSUs and the dividend equivalent PSUs...

  • Page 88
    ... longer publicly traded, the company will no longer be included as a Comparator Company. In the event of a bankruptcy of a Comparator Company, such company shall remain a Comparator Company, without adjustment to its financial or market condition. iv. v. (e) Subject to the terms and conditions of...

  • Page 89
    ... performance stock units relating to its publicly listed and traded common stock ("Continuing PSUs") by converting the PSUs into a number of Continuing PSUs having a value equal to the value of the Award as of the date of the change based on the closing market price of the relevant reference shares...

  • Page 90
    ..., stock splits, stock dividends, combination of shares or other changes in the Company's capital structure or its business, (ii) any merger, consolidation or similar transaction by or of the Company, (iii) any offer, issue or sale by the Company of any capital stock of the Company, including...

  • Page 91
    .../digital retailing including, without limitation, QVC, EVINE (f/k/a Shop HQ), or World Shopping Source (aka WSS), or Jewelry Television, aka America's Collectibles Network, Inc., or ACNTV, as well as any company which subsequently enters the field of television retailing as its primary business...

  • Page 92
    ... ambiguity in the Award Summary (or any information posted on the Morgan Stanley Stock Plan Connect System), this Agreement, the Plan and/or the books and records of the Company, as applicable, shall control. 18. Amendment The Company may modify, amend or waive the terms of the Award, prospectively...

  • Page 93
    ...this Agreement to be executed on its behalf by a duly authorized officer. Electronic acceptance of this Agreement pursuant to the Company's instructions to Grantee (including through an online acceptance process managed by the Agent) is acceptable. HSN, INC. By: Maria Martinez Chief Human Resources...

  • Page 94
    ...$ 268,854 $ 2014 277,527 $ 2013 276,141 $ 2012 219,870 $ 2011 207,758 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-K. Includes...

  • Page 95
    ... Brands, Inc...Cornerstone Services, Inc...Frontgate Marketing, Inc...Garnet Hill, Inc...H.O.T. Networks Holdings (Delaware) LLC ...Home Shopping Network En Espanol, L.P...Home Shopping Network En Espanol, L.L.C...HSN Catalog Services, Inc...HSN Holding LLC ...HSN Improvements LLC ...HSN Interactive...

  • Page 96
    ... to the Employee Stock Purchase Plan of HSN, Inc.; of our reports dated February 24, 2016, 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 97
    ... to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report; 3. Based on my knowledge, the financial statements, and other financial information included...

  • Page 98
    ... fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report; Based on my knowledge, the financial statements, and other financial information...

  • Page 99
    ... 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 24, 2016 By: /s/ Mindy Grossman Mindy Grossman Chief Executive Officer

  • Page 100
    ... 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 24, 2016 By: /s/ Judy A. Schmeling Judy A. Schmeling Chief Financial Officer and Chief Operating Officer