| Adjusted EBITDA To Operating Income (Loss) And Consolidated Net Income [Table Text Block] |
The following tables reconcile Adjusted EBITDA to operating income for HSNi’s operating segments and to HSNi’s consolidated net income (in thousands):
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Year Ended December 31, 2015 |
|
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
|
$ |
302,881 |
|
|
$ |
54,561 |
|
|
$ |
357,442 |
|
Stock-based compensation expense |
|
(13,889 |
) |
|
(4,519 |
) |
|
(18,408 |
) |
Depreciation and amortization |
|
(29,371 |
) |
|
(14,047 |
) |
|
(43,418 |
) |
Asset impairments, net (a) |
|
— |
|
|
(5,568 |
) |
|
(5,568 |
) |
Exit and reorganization costs (b) |
|
(5,208 |
) |
|
— |
|
|
(5,208 |
) |
Loss on disposition of fixed assets |
|
(791 |
) |
|
(15 |
) |
|
(806 |
) |
Operating income |
|
$ |
253,622 |
|
|
$ |
30,412 |
|
|
284,034 |
|
Total other expense, net |
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|
|
|
|
(15,180 |
) |
Income from continuing operations before income taxes |
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|
|
|
|
268,854 |
|
Income tax provision |
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|
|
|
|
(99,615 |
) |
Net income |
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|
|
|
|
$ |
169,239 |
|
(a) Results for the year ended December 31, 2015 exclude $6.7 million of charges for the impairment of intangible assets and $1.1 million of other non-cash adjustments.
(b) Results for the year ended December 31, 2015 exclude $3.2 million for certain costs associated with the planned closure of one of HSN's distribution centers as part of its supply chain optimization initiative and $2.0 million of severance costs associated with a reorganization at HSN.
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Year Ended December 31, 2014 |
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|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
|
$ |
289,141 |
|
|
$ |
53,199 |
|
|
$ |
342,340 |
|
Stock-based compensation expense |
|
(12,224 |
) |
|
(3,382 |
) |
|
(15,606 |
) |
Depreciation and amortization |
|
(29,762 |
) |
|
(14,172 |
) |
|
(43,934 |
) |
Breakage income (a) |
|
4,962 |
|
|
— |
|
|
4,962 |
|
CPSC settlement (b) |
|
— |
|
|
(3,100 |
) |
|
(3,100 |
) |
Loss on disposition of fixed assets |
|
(19 |
) |
|
(34 |
) |
|
(53 |
) |
Operating income |
|
$ |
252,098 |
|
|
$ |
32,511 |
|
|
284,609 |
|
Total other expense, net |
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|
|
|
|
(7,082 |
) |
Income from continuing operations before income taxes |
|
|
|
|
|
277,527 |
|
Income tax provision |
|
|
|
|
|
(104,543 |
) |
Net income |
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|
|
|
|
$ |
172,984 |
|
(a) Results for the year ended December 31, 2014 include $5.0 million of breakage income related to the reversal of certain customer credits.
(b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").
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Year Ended December 31, 2013 |
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|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
|
$ |
261,292 |
|
|
$ |
76,574 |
|
|
$ |
337,866 |
|
Stock-based compensation expense |
|
(10,657 |
) |
|
(3,386 |
) |
|
(14,043 |
) |
Depreciation and amortization |
|
(28,372 |
) |
|
(12,217 |
) |
|
(40,589 |
) |
Asset impairment (a) |
|
— |
|
|
(3,040 |
) |
|
(3,040 |
) |
Fair value adjustment to contingent consideration obligation (a) |
|
— |
|
|
3,600 |
|
|
3,600 |
|
Loss on disposition of fixed assets |
|
(1,079 |
) |
|
(61 |
) |
|
(1,140 |
) |
Operating income |
|
$ |
221,184 |
|
|
$ |
61,470 |
|
|
282,654 |
|
Total other expense, net |
|
|
|
|
|
(6,513 |
) |
Income from continuing operations before income taxes |
|
|
|
|
|
276,141 |
|
Income tax provision |
|
|
|
|
|
(97,692 |
) |
Net income |
|
|
|
|
|
$ |
178,449 |
|
(a) Results for the year ended December 31, 2013 include fair value adjustments of $3.6 million related to a contingent consideration liability and $3.0 million for the impairment of indefinite-lived intangible assets, both related to the 2012 acquisition of Chasing Fireflies, one of the Cornerstone brands.
|
| Schedule of Segment Reporting Information, by Segment [Table Text Block] |
Financial information by segment is as follows (thousands):
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Year Ended December 31, |
|
|
2015 |
|
2014 |
|
2013 |
Net sales: |
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|
|
|
HSN |
|
$ |
2,542,107 |
|
|
$ |
2,476,088 |
|
|
$ |
2,312,382 |
|
Cornerstone |
|
1,148,468 |
|
|
1,111,907 |
|
|
1,091,601 |
|
Total |
|
$ |
3,690,575 |
|
|
$ |
3,587,995 |
|
|
$ |
3,403,983 |
|
Identifiable assets: |
|
|
|
|
|
|
HSN |
|
$ |
1,036,367 |
|
|
$ |
1,110,372 |
|
|
$ |
1,035,769 |
|
Cornerstone |
|
305,096 |
|
|
289,154 |
|
|
272,393 |
|
Total |
|
1,341,463 |
|
|
1,399,526 |
|
|
1,308,162 |
|
Capital expenditures: |
|
|
|
|
|
|
HSN |
|
$ |
44,844 |
|
|
$ |
32,307 |
|
|
$ |
36,156 |
|
Cornerstone |
|
15,848 |
|
|
15,009 |
|
|
15,796 |
|
Total |
|
$ |
60,692 |
|
|
$ |
47,316 |
|
|
$ |
51,952 |
|
|