QVC Group, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings Per Share (Note)

Earnings Per Share (Note)

12 Months Ended

Dec. 31, 2016

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, 2016, 2015 and 2014, basic earnings per share was computed using the number of weighted average shares of common stock outstanding and assumed to be outstanding for the period.

Diluted Earnings Per Share

For the years ended December 31, 2016, 2015 and 2014, diluted earnings per share was computed using the number of shares of common stock outstanding and assumed to be 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,
	2016		2015		2014

Net income	$	118,708	$	169,239	$	172,984

Weighted average number of shares outstanding:
Basic	52,359		52,627		52,736
Dilutive effect of stock-based compensation awards	504		878		897
Diluted	52,863		53,505		53,633

Net income per share:
Basic	$	2.27	$	3.22	$	3.28
Diluted	$	2.25	$	3.16	$	3.23

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	2,076		560		763