|
Shareholders' Equity (Note)
|
9 Months Ended |
|---|---|
|
Sep. 30, 2013
|
|
| Stockholders' Equity Note [Abstract] | |
| Shareholders' Equity |
SHAREHOLDERS’ EQUITY
Share Repurchase Program
On September 27, 2011, HSNi’s Board of Directors approved a share repurchase program which allows HSNi to purchase 10 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. The repurchase program may be suspended or discontinued by HSNi at any time. For the nine months ended September 30, 2013, HSNi acquired under the program approximately 2.5 million shares of its outstanding common stock for $137.0 million at an average price of $53.79. For the nine months ended September 30, 2012, HSNi acquired under the program approximately 4.8 million shares of its outstanding common stock for $187.4 million at an average price of $39.15. As of September 30, 2013, approximately 1.2 million shares remained authorized for repurchase under the plan.
Shares repurchased pursuant to HSNi’s share repurchase program are immediately retired upon purchase. Repurchased common stock is reflected as a reduction of stockholders’ equity. HSNi’s accounting policy related to its share repurchases is to reduce its common stock based on the par value of the shares and to reduce its capital surplus for the excess of the repurchase price over the par value. Since the inception of its share repurchase program in September 2011, HSNi has had an accumulated deficit balance; therefore, the excess over the par value has been applied to additional paid-in capital. Once HSNi has retained earnings, the excess will be charged entirely to retained earnings.
Dividend Policy
Effective August 1, 2013, HSNi's Board of Directors approved a quarterly cash dividend of $0.18 per common share. The dividend was paid on September 18, 2013 to HSNi's shareholders of record as of September 4, 2013.
Effective November 6, 2013, HSNi's Board of Directors approved a quarterly cash dividend of $0.25 per common share. This represents an increase over the prior quarterly dividend of 39% or $.07 per common share. The dividend will be paid on December 18, 2013 to HSNi's shareholders of record as of December 4, 2013.
|