Home Shopping Network 2015 Annual Report Download - page 63

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NOTE 15—SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental Disclosure of Cash Flow Information:
Year Ended December 31,
2015 2014 2013
(in thousands)
Cash paid during the period for:
Income tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 99,012 $ 87,787 $ 92,502
Income tax refunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (102) (482) (2,061)
Interest payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,087 6,142 5,230
Non-cash investing activities:
Capital expenditures incurred but paid in advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 9,100 —
Non-cash financing activities:
Effective portion of change in interest rate swap. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,620) (1,581) 1,296
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.
Accumulated Other Comprehensive (Loss) Income
Accumulated other comprehensive income (loss) includes the cumulative gains and losses of derivative instruments that
qualify as cash flow hedges. The following table provides a rollforward of accumulated other comprehensive income (loss) for
the years ended December 31, 2015, 2014 and 2013 (in thousands):
2015 2014 2013
Accumulated other comprehensive income (loss) as of January 1, . . . . . . . . . . . $ 127 $ 354 $ (471)
Other comprehensive (loss) income before reclassifications . . . . . . . . . . . . . . . . (1,620) (1,581) 1,329
Amounts reclassified from accumulated other comprehensive income (loss) to
interest expense in the consolidated statements of operations . . . . . . . . . . . . . . . 1,263 1,215 —
Income tax benefit (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 139 (504)
Other comprehensive (loss) income, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . (222) (227) 825
Accumulated other comprehensive (loss) income as of December 31, . . . . . . . . $ (95) $ 127 $ 354
Share Repurchase Program
On September 27, 2011, HSNi’s Board of Directors approved a share repurchase program which allowed HSNi to
purchase 10 million shares of its common stock from time to time through privately negotiated and/or open market
transactions. In July 2014, HSNi completed its 10 million share repurchase program at an aggregate cost of $451.0 million,
representing an average cost of $45.10 per share. All shares were immediately retired upon purchase.
Effective January 27, 2015, HSNi's Board of Directors approved a new share repurchase program which allows HSNi to
purchase up to 4 million shares of its common stock from time to time through privately negotiated and/or open market
transactions. The timing of repurchases and actual number of shares repurchased depends 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. As of December 31, 2015, approximately 3.1 million shares remained authorized for repurchase under the program.