Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

v2.4.0.6
Earnings Per Share
 12 Months Ended
Dec. 31, 2011
Earnings Per Share [Abstract]  
Earnings Per Share

NOTE 9—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.

Basic Earnings Per Share

For the years ended December 31, 2011, 2010 and 2009, basic earnings per share was computed using the number of weighted average shares of common stock outstanding for the period.

Diluted Earnings Per Share

For the years ended December 31, 2011, 2010 and 2009, diluted earnings per share was computed using the number of shares of common stock 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 rights and the vesting of restricted stock units using the treasury stock method.

 

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

 

     Year Ended December 31,  
     2011      2010      2009  

Net income

    $ 123,070       $ 98,523       $ 72,488   
  

 

 

     

 

 

     

 

 

  

Weighted average number of shares outstanding:

         

Basic

      58,636         57,414         56,383   

Dilutive effect of stock-based compensation awards

      2,053         2,132         947   
  

 

 

     

 

 

     

 

 

  

Diluted

      60,689         59,546         57,330   
  

 

 

     

 

 

     

 

 

  

Net income per share:

         

Basic

    $ 2.10       $ 1.72       $ 1.29   

Diluted

    $ 2.03       $ 1.65       $ 1.26   

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

      911         1,632         4,372