Annual report pursuant to Section 13 and 15(d)

Earnings Per Share (Note)

v2.4.0.6
Earnings Per Share (Note)
 12 Months Ended
Dec. 31, 2012
Earnings Per Share [Abstract]  
Earnings Per Share
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, 2012, 2011 and 2010, 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, 2012, 2011 and 2010, 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,
 
 
2012
 
2011
 
2010
Net income
 


 


 


Continuing operations
 
$
136,497

 
$
127,652

 
$
100,441

Discontinued operations
 
(5,822
)
 
(4,582
)
 
(1,918
)
Net income
 
$
130,675

 
$
123,070

 
$
98,523

 
 
 
 
 
 
 
Weighted average number of shares outstanding:
 
 
 
 
 
 
Basic
 
56,314

 
58,636

 
57,414

Dilutive effect of stock-based compensation awards
 
1,642

 
2,053

 
2,132

Diluted
 
57,956

 
60,689

 
59,546

 
 
 
 
 
 
 
Net income (loss) per share - basic:
 
 
 
 
 
 
Continuing operations
 
$
2.42

 
$
2.18

 
$
1.75

Discontinued operations
 
(0.10
)
 
(0.08
)
 
(0.03
)
Net income
 
$
2.32

 
$
2.10

 
$
1.72

 
 
 
 
 
 
 
Net income (loss) per share - diluted:
 
 
 
 
 
 
Continuing operations
 
2.36

 
2.10

 
1.69

Discontinued operations
 
$
(0.11
)
 
$
(0.07
)
 
$
(0.04
)
Net income
 
$
2.25

 
$
2.03

 
$
1.65

 
 
 
 
 
 
 
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
 
1,276

 
911

 
1,632