QVC Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Sep. 30, 2011

NOTE 7—EARNINGS PER SHARE

HSNi computes basic earnings per share using the weighted average number of common shares outstanding for the period. HSNi computes diluted earnings per share using the treasury stock method which includes the weighted average number of common shares outstanding for the period plus the potential dilution that could occur if various equity awards to issue common stock were exercised or restricted equity awards were vested resulting in the issuance of common stock that could share in HSNi's earnings.

The following table presents HSNi's basic and diluted earnings per share (in thousands, except per share data):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Net income	$	24,304	$	14,878	$	76,551	$	57,236

Weighted average number of shares outstanding:
Basic		58,854		57,607		58,574		57,279
Dilutive effect of stock-based compensation awards		1,959		2,117		2,072		2,124

Diluted		60,813		59,724		60,646		59,403


Net income per share:
Basic	$	0.41	$	0.26	$	1.31	$	1.00

Diluted	$	0.40	$	0.25	$	1.26	$	0.96

Unexercised employee stock options and stock appreciation rights and unvested restricted stock units excluded from the diluted EPS calculation because their effect would have been antidilutive		1,207		1,577		1,272		1,835