10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________________________________________________________________________

FORM 10-K

______________________________________________________________________________________________

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014

Commission File No. 001-34061

________________________________________________________________________________________________

HSN, INC.

(Exact name of registrant as specified in its charter)

________________________________________________________________________________________________

Delaware	26-2590893
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1 HSN Drive, St. Petersburg, Florida	33729
(Address of principal executive offices)	(Zip Code)

(727) 872-1000

(Registrant’s telephone number, including area code)

________________________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of exchange on which registered
Common Stock, par value $0.01 Series A Junior Participating Preferred Stock Purchase Rights	NASDAQ Global Select Market NASDAQ Global Select Market

Securities registered pursuant to Section 12(g) of the Act: None

________________________________________________________________________________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.     Yes x    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.     Yes ¨    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, an Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registration was required to submit and post such files).   Yes x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company as defined in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ¨    No  x

The aggregate market value of the registrant’s outstanding common stock held by non-affiliates as of June 30, 2014 (the registrant’s most recently completed second fiscal quarter), was $1,889,878,508 (based on a closing price of $59.24 per share for the registrant’s common stock on the NASDAQ Global Select Market).

As of February 25, 2015, the registrant had 52,430,415 shares of common stock, $0.01 par value per share, outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the definitive Proxy Statement for the 2015 Annual Meeting of Shareholders to be filed with the U.S. Securities and Exchange Commission no later than 120 days after the end of the registrant’s 2014 fiscal year end are incorporated by reference into Items 10, 11, 12, 13 and 14 of Part III of this Form 10-K.

TABLE OF CONTENTS

		Page
	PART I
ITEM 1.	BUSINESS	2
ITEM 1A.	RISK FACTORS	9
ITEM 1B.	UNRESOLVED STAFF COMMENTS	15
ITEM 2.	PROPERTIES	15
ITEM 3.	LEGAL PROCEEDINGS	15
ITEM 4.	MINE SAFETY DISCLOSURES	15
	PART II
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	16
ITEM 6.	SELECTED FINANCIAL DATA	18
ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	19
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	31
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	32
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	67
ITEM 9A.	CONTROLS AND PROCEDURES	67
ITEM 9B.	OTHER INFORMATION	70
	PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	70
ITEM 11.	EXECUTIVE COMPENSATION	70
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS	70
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE	70
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	70
	PART IV
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	71

FORWARD-LOOKING STATEMENTS

This annual report on Form 10-K contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), which are based on management’s exercise of business judgment, as well as assumptions made by and information currently available to management. When used in this document, the words “may,” “will,” “anticipate,” “believe,” “estimate,” “expect,” “intend” and words of similar import, are intended to identify any forward-looking statements. These forward-looking statements include, among other things, statements relating to the following: HSN, Inc.’s ("HSNi's") future financial performance, HSNi’s business prospects and strategy, anticipated trends and prospects in the various markets in which HSNi’s businesses operate and other similar matters. These forward-looking statements relate to expectations concerning matters that are not historical fact and are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Although we believe our expectations are based on reasonable estimates and assumptions, they are not guarantees of performance.

Should one or more of these uncertainties, risks or changes in circumstances materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. Factors that could cause or contribute to such differences include but are not limited to those described under “Risk Factors,” and the following:

• the influence of the macroeconomic environment and its impact on consumer confidence and spending levels;

• our ability to attract new and retain existing customers in a cost-effective manner;

• our exposure to intense competition and our ability to effectively compete for customers;

• changes in our relationships with pay television operators, vendors, manufacturers and other third parties;

• changes in product shipping promotions or delivery costs particularly if we are unable to offset them;

• any technological or regulatory developments that could negatively impact the way we do business, including developments requiring us to collect and remit state and local sales and use taxes in states where we do not currently do so;

• risks associated with possible systems failures and/or security breaches, including, any security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or company information, or the failure to comply with various laws applicable to HSNi in the event of such a breach;

• HSNi’s business prospects and strategy, including whether HSNi’s initiatives will be effective;

• our ability to offer new or alternative products and services through various platforms in a cost effective manner and consumer acceptance of these products and services;

• risks associated with acquisitions including the ability to successfully integrate new businesses and achieve expected benefits and results; and

• the loss of any key member of our senior management team.

Other unknown or unpredictable factors that could also adversely affect HSNi’s business, financial condition and results of operations may arise from time to time.

You should not place undue reliance on these forward-looking statements. All written or oral forward-looking statements that are made or are attributable to us are expressly qualified in their entirety by this cautionary notice. Such forward-looking statements speak only to the date such statements are made and we do not undertake to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Historical results should not be considered an indication of future performance.

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PART I

ITEM 1. BUSINESS

Unless otherwise indicated in this Annual Report or the context otherwise requires, all references in this Annual Report to “HSNi,” the “Company,” “us,” “our” or “we” are to HSN, Inc. and/or its subsidiaries and affiliates.

Business Overview

HSNi is an interactive multi-channel retailer offering customers innovative and differentiated experiences through various platforms including television, online, mobile, catalogs and in retail and outlet stores through the eight brands of its two operating segments, HSN and Cornerstone.

HSN is an interactive entertainment and lifestyle retailer offering a curated assortment of exclusive products and top brand names to its customers primarily through television home shopping programming on the HSN television networks and other direct-response television marketing, through its business-to-consumer digital commerce site HSN.com, through mobile applications and through its outlet stores. HSN incorporates entertainment, inspiration and personalities to provide an entirely unique shopping experience.

Cornerstone is comprised of interactive, aspirational home and apparel lifestyle brands, including Ballard Designs, Chasing Fireflies, Frontgate, Garnet Hill, Grandin Road, Improvements and TravelSmith. Cornerstone operates seven separate digital sales sites, distributes approximately 325 million catalogs annually and operates 11 retail and outlet stores. For financial information about our operating segments, please refer to Note 6 to our audited consolidated financial statements, as well as to Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations," each of which are included elsewhere in this document.

Our principal offices are located at 1 HSN Drive, St. Petersburg, Florida 33729 and our main telephone number is 727-872-1000. Our website is located at http://www.hsni.com.

History

HSNi’s predecessor company began broadcasting television home shopping programming from its studios in St. Petersburg, Florida in 1981 and, by 1985, was broadcasting this programming through a national network of cable and local television stations 24 hours a day, seven days a week. The company continued to broaden its national distribution network through a combination of cable, satellite and broadcast systems and, as of December 31, 2014, the HSN television networks reached approximately 95.0 million residential homes in the United States.

The company began conducting business online in 1994 and formally launched HSN.com, the online shopping portal for the HSN television network, in 1999.

The company acquired Improvements, a catalog featuring thousands of innovative home, patio and outdoor products, in June 2001, and significantly grew its catalog business through the acquisition of Cornerstone Brands, Inc., with its portfolio of leading print catalogs and related websites, in April 2005.

HSNi was incorporated in Delaware in May 2008 in connection with the spin-off of several businesses previously owned by IAC/InterActiveCorp, or IAC. HSNi was formed to hold HSN and Cornerstone, the businesses that previously comprised most of IAC’s retailing segment. The spin-off from IAC (the "Spin-off") occurred on August 20, 2008 and, in connection with the Spin-off, HSNi's shares began trading on the NASDAQ Global Select Market under the symbol "HSNI."

In early 2012, the Company initiated efforts to strengthen its portfolio of aspirational home and apparel lifestyle catalog brands. This resulted in the acquisition of Chasing Fireflies, LLC, a leading direct-to-consumer premium children's and family's lifestyle brand, in April 2012. This was followed by the divestitures of Smith+Noble, a brand specializing in window treatments, in May 2012 and The Territory Ahead, a brand specializing in casual apparel for men and women, in July 2012.

What We Do

HSNi markets and sells a wide range of third party and proprietary private label merchandise directly to consumers through HSN, which includes the HSN television networks and digital platforms, including mobile, as well as through Cornerstone’s portfolio of catalogs and digital platforms, including mobile.

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HSNi is committed to providing customers with an evolving variety of quality products at reasonable prices and from brands that resonate with its customers. Products offered through HSN include jewelry, fashion (apparel & accessories), beauty & health, and home & other (including household, home design, electronics, culinary and other). Featured products include proprietary label products and third party-branded products, some of which are produced exclusively for HSN, as well as merchandise generally available through other retailers. Cornerstone primarily offers home and outdoor furnishings, in addition to women and children's apparel with the majority produced exclusively for its Cornerstone brands.

HSN

Overview

HSN includes the HSN television networks and other direct-response television marketing; its related website, HSN.com; its mobile applications and a limited number of outlet stores. The HSN television network broadcasts live, customer interactive home shopping programming 24 hours a day, seven days a week. HSN2, which debuted in August 2010, is a network that primarily distributes taped programming on a limited distribution basis. HSN’s programming is intended to promote sales and customer loyalty through a combination of product quality, value and selection, coupled with product information, entertainment and interactive experiences. Programming is divided into separately televised segments, most of which have hosts who present and convey information regarding featured products, sometimes with the assistance of a celebrity, industry expert, representative from the product vendor or someone retained to aid in the sale of the products. HSN also produces entertainment such as live concerts to entertain and engage with customers and promote certain products. HSN.com is a business-to-consumer digital commerce site that sells all of the merchandise offered on the HSN television networks, together with complementary products and select merchandise sold exclusively on HSN.com. HSN provides seamless experiences across all digital platforms and optimizes each unique platform by delivering exclusive content both at HSN.com and on mobile phones and tablets, including the iPad, iPhone and Android and Windows devices. The HSN strategy is to create immersive experiences, offer differentiated products and leverage technology to build seamless relationships with its customers across all of its platforms. HSN fosters social communities as part of the HSN experience to encourage customers to share their product finds, thoughts and reviews with their friends via Facebook, Twitter, Pinterest and Instagram.

Reach

HSN produces live programming for the HSN television network primarily from its studios in St. Petersburg, Florida, and distributes this programming by means of satellite uplink facilities, which it owns and operates, to a satellite transponder which is leased on a full-time basis through May 2019. The satellite transponder lease provides for continued carriage of the HSN television networks on a replacement transponder and/or replacement satellite, as applicable, in the event of a failure of the transponder and/or satellite.

As of December 31, 2014 and 2013, the HSN television networks reached approximately 95.0 million homes of the approximately 113.8 million and 115.6 million homes, respectively, in the United States with a television set. Television households reached by the HSN television networks as of December 31, 2014 and 2013 primarily include approximately 64.3 million and 64.1 million households capable of receiving cable and/or telephone company ("Telco") transmissions, respectively, and approximately 30.7 million and 30.9 million direct broadcast satellite system, or DBS, households, respectively.

Pay Television Distribution

HSN has entered into distribution and affiliation agreements with cable television, Telco and DBS operators, collectively referred to in this document as pay television operators, in the United States to carry the HSN television networks, as well as to promote the networks by carrying related commercials and distributing related marketing materials to their respective subscriber bases. HSN currently has contracts with many local and national pay television operators to distribute HSN television programming.

HSN’s larger pay television operators include Comcast, DirecTV, Echostar/DISH and Time Warner Cable.

In exchange for this carriage and related promotional and other efforts, HSN generally pays these pay television operators a fee consisting of commissions based on a percentage of the net merchandise sales to their subscriber bases and/or a per subscriber fee. In some cases, pay television operators receive additional compensation in the form of commission guarantees in exchange for their commitments to deliver a specified number of subscribers, channel placement incentives and advertising insertion time on the HSN television network.

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HSN typically negotiates agreements that require HSN to pay monthly or annual fees. Distribution and affiliation agreements with pay television operators expire from time to time and renewal and negotiation processes may be lengthy. At any given time in the ordinary course of business HSN is likely to be engaged in renewal and/or negotiation processes with multiple pay television operators. In some cases, renewals are not agreed upon prior to the expiration of a given agreement and the HSN television network continues to be carried by the relevant pay television operator without an effective affiliation agreement in place or via month-to-month contracts. HSN expects that any extension of agreements that have expired will be on terms that, when taken as a whole, are commercially reasonable to HSN and competitive with the economics of other pay television operators.

Broadcast Television Distribution

As of December 31, 2014, HSN also had affiliation agreements with 87 broadcast television stations for leased carriage of the HSN television network with terms ranging from several weeks to several years. In exchange for this carriage, HSN pays the broadcast television stations hourly or monthly fixed rates or commissions based on a percentage of the net merchandise sales to their viewership bases. HSNi’s subsidiary, Ventana Television, Inc. also owns 25 broadcast television stations that carry the HSN television networks on a full-time basis.

HSN.com

HSN also includes HSN.com, a transactional e-commerce site that sells merchandise offered on the HSN television networks, as well as select merchandise sold exclusively on HSN.com. HSN.com provides customers with additional content to support and enhance HSN television programming. For example, HSN.com provides users with an online program guide, value-added video of product demonstrations, live streaming video of the HSN television network, customer-generated product reviews and additional information about HSN show hosts and guest personalities. HSN.com offers customers a content-rich experience that houses more than 50,000 product and how-to videos.

Digital Distribution

HSN has applications for the iPhone, iPad and Android and Windows devices. These applications are highly video-centric, customized experiences that allow users to order merchandise, stream live video from HSN and watch previously-aired content from the network’s video library while simultaneously browsing related products. Among other things, these applications also allow customers to create their own personalized channels, select their favorite brands or categories of merchandise and compile videos focused on these preferences. Mobile devices represent our fastest growing sales channel.

Cornerstone

Cornerstone consists of a portfolio of aspirational home and apparel brands, prominent in the direct marketing and retail space, including catalog distribution and related websites. Although there is some overlap in the product offerings, the home brands are comprised of Frontgate, Ballard Designs, Grandin Road and Improvements. The apparel brands are comprised of Garnet Hill, TravelSmith and Chasing Fireflies. There are also 11 retail and outlet stores located throughout the United States.

Frontgate features premium, high quality, luxury bed, bath, kitchen, outdoor, patio, garden and pool furnishings and accessories. Ballard Designs features European‑inspired bed, bath, dining, outdoor and office furnishings and accessories, as well as rugs, shelving and architectural accents for the home. Grandin Road offers an affordable style assortment of products ranging from occasional furniture, accessories, holiday décor and outdoor furniture and Improvements features thousands of innovative home, patio and outdoor products.

Garnet Hill offers apparel and accessories for women and children as well as bed and bath furnishings and soft goods. TravelSmith offers travel wear for men and women and related accessories. Chasing Fireflies is a leading children's and family lifestyle brand offering keepsake-quality apparel, costumes, gifts and accessories.

The Cornerstone brands generally incorporate on-site photography and real-life settings, coupled with related editorial content describing the merchandise and depicting situations in which it may be used. Branded catalogs are designed and produced in-house, which enables each individual brand to control the production process and reduces the amount of lead time required to produce a given catalog.

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New editions of full-color catalogs are mailed to customers several times each year, with a total annual circulation in 2014 of approximately 325 million catalogs. The timing and frequency of catalog circulation varies by brand and depends upon a number of factors, including the timing of the introduction of new products, marketing campaigns and promotions and inventory levels, among other factors.

Cornerstone also operates websites for each of its featured brands, such as Frontgate.com, BallardDesigns.com, Chasing-Fireflies.com, GarnetHill.com, GrandinRoad.com, TravelSmith.com and Improvementscatalog.com. These websites serve as additional storefronts for products featured in related print catalogs, as well as provide customers with additional content and product assortments to support and enhance their shopping experience. Additional content provided by these websites, which differs across the various websites, includes decorating tips, measuring information, online design centers, gift registries and travel centers, as well as a feature that allows customers to browse the related catalog online. In addition, a growing number of customers use mobile devices to shop the Cornerstone brands.

Supply

HSN and Cornerstone purchase products by way of short- and long-term contracts and purchase orders, including products made to their respective specifications, as well as name brand merchandise and lines from third party partners, typically with certain exclusive rights. The terms of these contracts and purchase orders vary depending upon the underlying products, the retail channel in which the products will ultimately be sold and the method of sale. In some cases, these contracts provide for the payment of additional amounts to partners in the form of commissions, the amount of which is based upon the achievement of agreed upon sales targets, among other milestones. In addition, in the case of some purchases, HSNi may have certain return, extended payment and/or termination rights. The mix and source of products generally depends upon a variety of factors, including price and availability, and HSNi manages inventory levels through periodic, ongoing analyses of anticipated and current sales. No single vendor accounted for more than 10% of HSNi’s consolidated net sales in 2014, 2013 or 2012.

Marketing and Merchandising

HSNi offers our customers a broad assortment of differentiated products in a compelling, informative and entertaining format that will inspire them to regularly engage and shop with us. For example, HSN frequently collaborates with experts from a variety of fields to present special events on the HSN television network featuring HSN products and relevant expert content. HSN produces live entertainment as a way to further engage with our customers. These events are staged at HSN’s television studios or elsewhere. Certain special events are also featured on HSN.com and HSN2 for a limited period of time following their live broadcast on the HSN television network. HSN also has integrated a gamification strategy into its e-commerce platform to promote customer loyalty and engagement. In addition, HSN.com has over 50,000 video demonstrations of products and how-to videos.

In an effort to promote its own differentiated brand, HSN seeks to provide its customers with unique products that can only be purchased through HSN. HSN frequently partners with leading personalities and brands to develop product lines exclusive to HSN and believes that these affiliations enhance the awareness of the HSN brand among consumers, as well as increase the extent to which HSN and/or products sold through HSN are featured in the media. In some cases, vendors have agreed to market their HSN affiliation to their existing customers (e.g., notifying customers when their products will be featured on the HSN television network).

HSN engages in co-promotional partnerships with major media companies. These are done primarily because they offer us editorial authority while they also secure print advertising in national fashion, style and/or lifestyle publications to market HSN to prospective customers in its target demographics. HSN also engages in search engine marketing and targeted offline advertising. As part of HSN's entertainment strategy, it participates in innovative joint marketing and promotional partnerships with major motion picture companies as well as well-known recording artists. HSN also creates strategic alliances with world-class, consumer brands in an effort to reach new prospects through relevant brand integrations and occasion-based event marketing. These promotions are designed to not only generate additional revenue and create brand awareness, but to also provide unique experiences for our customers in our continued effort to drive customer engagement as well as position HSN as a proven and powerful marketing vehicle.

HSN's credit card program offers eligible customers a private label credit card. All cardholders receive certain rewards and benefits which are designed to recognize and promote client loyalty. HSN designs, executes and administers marketing programs to promote usage of the card to current and potential customers. These marketing programs are funded largely by the sponsoring bank. Typically, customers using the HSN private label credit card shop with HSN more frequently, as well as spend more money per visit, than customers not using the card. In addition to fostering greater customer loyalty and driving more sales, HSN also saves on interchange fees that it would incur if its customers used third-party cards. Purchases made through the private label credit card represented 31%, 28% and 27% of HSN's business in 2014, 2013 and 2012, respectively.

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The Cornerstone brands differentiate themselves by offering customers an assortment of innovative proprietary and branded apparel and home products. In many cases, Cornerstone seeks to secure exclusive distribution rights for certain products. Cornerstone employs in-house designers and partners with leading manufacturers and designers to aid in the development of its unique, exclusive product assortment. The Cornerstone brands use their respective websites and e-mail marketing to promote special offers, including cross-promotions for other Cornerstone brands. In addition, Cornerstone partners with third parties to offer promotional events such as sweepstakes and/or enter into other advertising agreements. HSNi believes that these affiliations enhance the awareness of the Cornerstone brands among consumers as well as strengthen its various brands overall.

Order Entry, Fulfillment and Customer Service

HSNi provides customers with convenient options in connection with the purchase, payment and shipment of merchandise, some of which may vary by brand, business or product. Merchandise may be purchased online, through mobile devices, or ordered using toll free phone numbers through live sales and service agents. HSN also offers the convenience of an automated attendant system and, in limited markets, remote control ordering capabilities through pay television set-top boxes. Cornerstone’s catalog orders can also be made via submission of traditional catalog sales order forms.

HSNi offers traditional payment options, such as credit and certain debit cards. In addition, HSN also offers other payment options including private label credit cards, Paypal and Flexpay. By utilizing Flexpay, customers may pay for select merchandise in two to six interest-free, monthly credit or debit card payments. HSN also offers its customers the convenience of ordering products under its Autoship program, through which customers may arrange to have products automatically shipped and billed at scheduled intervals. Standard and express shipping options are available and customers may generally return most merchandise for a full refund or exchange in accordance with applicable return policies (which vary by brand and business). Returns generally must be received within specified time periods after purchase, ranging from a minimum of thirty days to a maximum of one year, depending upon the applicable policy.

HSNi seeks to fulfill customer orders and process returns quickly and accurately from a network of fulfillment centers. For HSN, these centers are located in Tennessee, California, Virginia and New York, and for Cornerstone, the fulfillment centers are located in Ohio and Arizona. HSNi contracts with several third party carriers and other fulfillment partners for the delivery of products to its customers and processing of returns.

Through HSN.com and the various websites operated by Cornerstone or through HSNi’s common carriers, customers can also generally track the status of their orders, confirm information regarding shipping and, in some cases, confirm the availability of inventory and establish and manage personal accounts. Customers may communicate directly with customer service via e-mail or by telephone with call center representatives available seven days a week.

Government Regulation

We market and offer a broad range of merchandise through television, online, catalogs and other channels. The manner in which we promote and sell merchandise, including claims and representations made in connection with these efforts, is regulated by a wide variety of federal, state and local laws, regulations, rules, policies and procedures. Some examples of these that affect the manner in which we sell and promote merchandise or otherwise operate our businesses include, but are not limited to, the following:

• The Federal Trade Commission’s regulations related to the sale of products and/or commercial contacts with our customers or potential customers, such as the Telemarketing Sales Rule and Do Not Call;

• The Food and Drug Administration’s regulations regarding marketing claims that can be made about cosmetic beauty products and over-the-counter drugs, which include products for treating acne or medical products, and claims that can be made about food products;

• Regulations related to product safety issues and product recalls including, but not limited to, the Consumer Product Safety Act, the Consumer Product Safety Improvement Act of 2008, the Federal Hazardous Substance Act, the Flammable Fabrics Act and regulations promulgated pursuant to these acts; and

• Various state laws, regulations and interpretations regarding the obligations of retailers with respect to the collection of sales tax on internet sales.

These laws, regulations, rules, policies and procedures are subject to change at any time. Unfavorable changes applicable to us could decrease demand for merchandise offered by us, increase costs which we may not be able to offset, subject us to additional liabilities and/or otherwise adversely affect our businesses.

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Since October 1996, HSN has been subject to a consent order issued by the Federal Trade Commission, or FTC, which terminates on the later of April 15, 2019, or 20 years from the most recent date that the United States or the FTC files a complaint in federal court alleging any violation thereunder. Pursuant to this consent order, we are prohibited from making claims for specified categories of products, including claims that a given product can cure, treat or prevent any disease or have an effect on the structure or function of the human body, unless we have competent and reliable scientific evidence to substantiate such claims. Violation of this consent order may result in the imposition of significant civil penalties for non-compliance and related redress to consumers and/or the issuance of an injunction enjoining us from engaging in prohibited activities. The FTC may periodically investigate our business and operations on an ongoing basis for purposes of determining our compliance with the consent order.

Online sales must comply with a variety of federal and state laws dealing with, amongst other things, privacy, intellectual property, taxation, the provision of online payment services and electronic contracts. While U.S. Supreme Court decisions generally restrict the imposition of obligations to collect state and local sales and use taxes with respect to sales from out-of-state retailers, an increasing number of states have adopted or are considering laws that would impose obligations on out-of-state retailers to collect taxes on their behalf. Congress is also considering legislation allowing states to require out-of-state sellers to collect sales and use taxes. An unfavorable change in U.S. Supreme Court guidance related to sales tax or a successful assertion by one or more states may result in material tax liabilities, interest and penalties. A change in state law or federal laws, our business model, business strategy or marketing initiatives may require us to collect sales tax in states for which we do not currently collect such tax. These developments, should they occur, may result in a decrease in future sales, may limit our ability to compete effectively or may otherwise harm our business.

While we believe that the practices of our businesses have been structured in a manner to ensure compliance with these laws and regulations; federal, state or local regulatory authorities may take a contrary position. Our failure to comply with these laws and regulations could result in proceedings against us, tax assessments, fines and penalties and/or a diminution of our reputation, each of which could adversely affect our financial condition, results of operations and businesses.

Intellectual Property

We regard our intellectual property rights, including patents, service marks, trademarks, domain names, copyrights and trade secrets, as important to our success. Our businesses also rely heavily upon software, informational databases and other systemic components that are necessary to manage and support our operations. We rely on a combination of laws and contractual restrictions with employees, customers, suppliers, licensees, affiliates and other third parties to establish and protect these proprietary rights. Despite these precautions, it may be possible for a third party to copy or otherwise obtain and use trade secrets or copyrighted intellectual property without authorization which, if discovered, might require legal action to correct. In addition, third parties may independently and lawfully develop substantially similar intellectual properties.

We have generally registered and continue to apply to register, or secure by contract when appropriate, our trademarks and service marks as they are developed and used, and reserve and register domain names as we deem appropriate. We consider the protection of our trademarks to be important for purposes of brand maintenance and reputation. While we vigorously protect our trademarks, service marks and domain names, effective trademark protection may not be available or may not be sought in every country in which products and services are made available, and contractual disputes may affect the use of marks governed by private contract. Similarly, not every variation of a domain name may be available or be registered, even if available. Our failure to protect our intellectual property rights in a meaningful manner or challenges to related contractual rights could result in dilution of brand names and/or limit our ability to control marketing on or through the internet using our various domain names either of which could adversely affect our business, financial condition and results of operations.

Some of our businesses have been granted patents and/or have patent applications pending with the United States Patent and Trademark Office and/or foreign patent authorities for various proprietary technologies and other inventions. We consider applying for patents or for other appropriate statutory protection when we develop or identify new or improved proprietary technologies or inventions, and will continue to consider the appropriateness of filing for patents to protect future proprietary technologies and inventions as circumstances may warrant. The issuance or assessment of the validity of any patent involves complex legal and factual questions, and the breadth of claims allowed is uncertain. Accordingly, any patent application filed may not result in a patent being issued or existing or future patents may not be adjudicated valid by a court or be afforded adequate protection against competitors with similar technology. In addition, third parties may create new products or methods that achieve similar results without infringing upon patents that we own. Likewise, the issuance of a patent to us does not mean that our processes or inventions will not be found to infringe upon patents or other rights previously issued to third parties.

From time to time, we are subject to legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of the trademarks, copyrights, patents and other intellectual property rights of third parties. In addition, litigation may be necessary in the future to enforce our intellectual property rights, protect trade secrets or determine the

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validity and scope of proprietary rights claimed by others. Any litigation of this nature, regardless of outcome or merit, could result in substantial costs and diversion of management and technical resources, any of which could adversely affect our business, financial condition and results of operations. Patent litigation tends to be particularly protracted and expensive.

Competition

HSNi brands and businesses operate in a highly competitive environment. These brands and businesses are in direct competition for consumers with traditional and online retailers (both television and internet retailers), ranging from large department stores to specialty shops, electronic retailers, direct marketing retailers, mail order and catalog companies, infomercial retailers, wholesale clubs and discount retailers. In addition, the HSN television networks compete for access to customers and audience share with other conventional forms of entertainment and content. The price and availability of programming for pay television systems affect the availability of distribution for HSN television programming. Principal competitive factors for HSNi brands and businesses include: (i) brand recognition, (ii) value, quality and selection of merchandise, (iii) customer experience, including customer service and reliability of fulfillment and delivery services and (iv) convenience and accessibility of sales channels.

Employees

As of January 22, 2015, HSNi employed approximately 6,900 employees. No HSNi employees are represented by unions or other similar organizations and HSNi considers its relations with its employees to be good.

Available Information

We file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy and information statements and amendments to reports filed or furnished pursuant to Sections 13(a), 14 and 15(d) of the Securities Exchange Act of 1934, as amended. The public may read and copy these materials at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains a website at www.sec.gov that contains reports, proxy and information statements and other information regarding HSN, Inc. and other companies that file materials with the SEC electronically.

Our website is located at http://www.hsni.com. We make available free of charge, on or through the website, our annual, quarterly and current reports, and any amendments to those reports, as soon as reasonably practicable after electronically filing such reports with the SEC.

Information relating to corporate governance, including our Code of Business Conduct and Ethics and our Corporate Governance Guidelines, is also available on our website at http://www.hsni.com/governance.cfm. The code of conduct complies with Item 406 of SEC Regulation S-K and the rules of the NASDAQ Global Select Market. Any changes to the code of conduct that affect the provisions required by Item 406 of Regulation S-K, and any waivers of the code of conduct for our executive officers, directors or senior financial officers, will also be disclosed on our website.

The content of our website is not a part of this Annual Report or any other report filed with the SEC.

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ITEM 1A. RISK FACTORS

The risks and uncertainties described below are not the only risks that may have a material adverse effect on HSNi. There exist additional risks and uncertainties that could adversely affect our business and our results. If any of the following risks actually occur, our business, financial condition or results of operations could be negatively affected, and the market price for our shares could decline. Further, to the extent that any of the information contained in this Annual Report on Form 10-K constitutes forward-looking statements, the risk factors set forth below also are cautionary statements identifying important factors that could cause the actual results of HSNi to differ materially from those expressed in any forward-looking statements made by or on behalf of HSNi.

Risks Related to Our Business

Our long-term success depends, in large part, on our continued ability to attract new and retain existing customers in a cost-effective manner.

In an effort to attract and retain customers, we engage in various marketing and merchandising initiatives, which involve the expenditure of considerable funds and resources, particularly in the case of the production and distribution of HSN television programming, Cornerstone catalogs and continuously updating our digital strategy. We have spent, and expect to continue to spend, increasing amounts of money on, and devote greater resources to, certain of these initiatives, particularly in connection with the growth and maintenance of our brands generally, as well as in the continuing efforts of our businesses to increasingly engage customers through digital channels. These initiatives, however, may not resonate with existing customers or consumers generally or may not be cost-effective. In addition, we believe that costs associated with the production and distribution of HSN television programming, paper and printing costs for Cornerstone catalogs and costs associated with digital marketing, including search engine marketing (primarily the purchase of relevant keywords) are likely to increase in the foreseeable future and, if significant, could have an adverse effect on our business, financial condition and results of operations to the extent that they do not result in corresponding increases in sales.

The retail business environment is subject to intense competition, and we may not be able to effectively compete for customers.

We operate in a rapidly evolving and highly competitive retail business environment. We have numerous and varied competitors at the national and local levels, ranging from large department stores to specialty shops, electronic retailers, direct marketing retailers, wholesale clubs, discount retailers, other televised shopping retailers such as QVC and ShopHQ, infomercial retailers, internet retailers, and mail-order and catalog companies. Many of our current and potential competitors are larger, have greater resources, longer histories, more customers and greater brand recognition than we do. They may secure better terms from vendors, adopt more aggressive pricing, offer free or subsidized shipping and devote more resources to technology, fulfillment and marketing. Other companies also may enter into business combinations or alliances that strengthen their competitive positions.

We also compete for access to customers and audience share with other providers of televised, online and hard copy entertainment and content. Our inability to compete effectively with regard to the assortment, price, shipping terms and quality of the merchandise we offer for sale or to keep pace with competitors in our marketing, service, location, reputation, credit availability and technologies, could have a material adverse effect.

We depend on relationships with pay television operators and adverse changes in these relationships could result in an interruption, material decrease or even the cessation of carriage of the HSN television networks.

We are dependent upon the pay television operators with whom we enter into distribution and affiliation agreements to carry the HSN television networks. We currently have contracts with many local and national pay television operators to distribute HSN television programming. Some of HSN’s larger pay television operators include Comcast, DirecTV, Echostar/DISH and Time Warner Cable. The two largest pay television operators represent 43% of our subscribers. The cessation of carriage of the HSN television networks by a major pay television operator or a significant number of smaller pay television operators for a prolonged period of time could adversely affect our business, financial condition and results of operations. While we believe that we will be able to continue to successfully manage the distribution process in the future, certain changes in distribution levels, as well as increases in fees payable for carriage, could occur notwithstanding these efforts.

We typically seek to enter into long-term distribution and affiliation agreements with these major pay television operators; however, in some cases, renewals are not agreed upon prior to the expiration of a given agreement and the HSN television networks continue to be carried by the relevant pay television operator without an effective agreement in place. We currently provide service to approximately 50% of our total subscribers pursuant to month-to-month contracts or contracts that

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have expired. In addition, another 40% of our subscribers are represented by contracts that expire within one year. Renewal and negotiation processes with pay television operators are typically lengthy. No assurance can be given that we will be successful in negotiating renewals with all these operators or that the financial and other terms of renewal will be on acceptable terms. The failure to successfully renew or negotiate new distribution and affiliation agreements covering a material portion of the existing cable and satellite households on acceptable terms could adversely affect our growth, sales revenue and earnings.

Our revenues and profit margin are negatively influenced by economic conditions that impact consumer spending. If macroeconomic conditions do not continue to improve or if conditions worsen, our business could be adversely affected.

Retailers generally are particularly sensitive to adverse economic and business conditions, in particular to the extent they result in a loss of consumer confidence, rising unemployment, increased taxes and decreases in consumer spending, particularly discretionary spending. Our customers anticipate and respond to adverse changes in economic conditions. If macroeconomic conditions do not continue to improve or if conditions worsen, our business could be adversely affected.

The failure to attract and retain television viewers and secure a suitable programming tier of carriage and channel placement for the HSN television network programming could result in a decrease in revenue.

We are dependent, in part, upon the continued ability of HSN to compete effectively for television viewers. Effectively competing for television viewers is dependent, in substantial part, on the ability of HSN to secure placement of the HSN television networks within a suitable programming tier and to effectively compete against others for the leisure and entertainment time of consumers. The advent of digital compression technologies and the adoption of digital cable has resulted in increased channel capacity. In addition, there are now more programming options available to the viewing public in the form of new television networks and time-shifted viewing (e.g., personal video recorders, video-on-demand, interactive television and streaming video over broadband internet connections as well as increased access to various media through wireless devices). These have the potential to reduce the viewing of our content. New technologies have been and will continue to be developed that increase the number of entertainment choices available and the manners in which they are delivered. Our failure to effectively anticipate or adapt to emerging technologies or changes in consumer behavior could have an adverse impact on our competitive position, business and results of operations.

A prolonged or permanent inability to broadcast the HSN television networks would result in lost customers and lost sales.

Our success is dependent upon the continued ability of HSN to transmit the HSN television networks to broadcast and pay television operators from its satellite uplink facilities, which transmission is subject to the Federal Communications Commission (“FCC”) compliance. HSN has entered into a satellite transponder lease to provide for continued carriage of the HSN television networks on a replacement transponder and/or replacement satellite, as applicable, in the event of a failure of the transponder and/or satellite. Any such disruption could have a material adverse effect on our competitive position, business and results of operations.

Interruption and the lack of integration and redundancy in our systems and infrastructures may adversely affect our ability to broadcast, operate websites, process and fulfill transactions, respond to customer inquiries and generally maintain cost-efficient operations.

We use the internet, mobile devices, social networking and other online activities to connect with our customers. Our success depends, in part, on our ability to maintain the integrity of our systems and infrastructures, including websites, information and related systems, call centers and fulfillment facilities. We may experience occasional system interruptions, including those caused by system conversions, that make some or all systems or data unavailable or prevent our businesses from efficiently providing services or fulfilling orders. We also rely on affiliate and third-party computer systems, broadband and other communications systems and service providers in connection with the provision of services generally, as well as to facilitate, process and fulfill transactions. Any interruptions, outages or delays in our systems and infrastructures, our businesses, our affiliates and/or third parties, or deterioration in the performance of these systems and infrastructures, could impair our ability to provide services, fulfill orders and/or process transactions. Fire, flood, power loss, telecommunications failure, hurricanes, tornadoes, earthquakes, acts of war or terrorism, acts of God and similar events or disruptions may damage or interrupt broadcast, computer, broadband or other communications systems and infrastructures at any time. In addition, we have observed an increase in the number of cyber attacks that include gaining access to digital systems for purposes of corrupting data or causing operational disruption. Any of these events could cause system interruption, delays and loss of critical data, and could prevent us from providing services, fulfilling orders and/or processing transactions which could have an adverse impact on our competitive position, business and results of operations. While we have backup systems for certain aspects of our operations, these systems are not fully redundant and disaster recovery planning is not sufficient for all eventualities. In addition, we may not have adequate insurance coverage to compensate for losses from a major interruption.

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The processing, storage, use and disclosure of personal data could give rise to liabilities as a result of governmental regulation, conflicting legal requirements or differing views of personal privacy rights.

In the processing of consumer transactions, we receive, transmit and store a large volume of personally identifiable information and other user data. The sharing, use, disclosure and protection of this information are governed by the privacy and data security policies maintained by us. Moreover, there are federal, state and international laws regarding privacy and the storing, sharing, use, disclosure and protection of personally identifiable information and user data. Specifically, personally identifiable information is increasingly subject to legislation and regulations in numerous jurisdictions around the world, the intent of which is to protect the privacy of personal information that is collected, processed and transmitted in or from the governing jurisdiction. We could be adversely affected if legislation or regulations are expanded to require changes in business practices or privacy policies, or if governing jurisdictions interpret or implement their legislation or regulations in ways that negatively affect our business, financial condition and results of operations.

We are subject to online and other cyber security risks and cyber incidents, including security and data breaches and identity theft.

To succeed, we must be able to provide for secure transmission of confidential information over public networks. We have observed an increased number of cyber attacks that include attempts to gain unauthorized access to digital systems for purposes of misappropriating assets or sensitive information. Our failure, and/or the failure by the various third party vendors and service providers with which we do business, to comply with applicable privacy policies or federal, state or similar international laws and regulations or any compromise of security that results in the unauthorized release of personally identifiable information or other user data could damage the reputation of our businesses, discourage potential users from trying our products and services and/or result in fines and/or proceedings by governmental agencies and/or consumers, one or all of which could adversely affect our business, financial condition and results of operations. Any penetration of network security or other misappropriation or misuse of personal consumer information could cause interruptions in the operations of our businesses and subject us to increased costs, litigation and other liabilities. Security and data breaches could also significantly damage our reputation with consumers and third parties with whom we do business. We may be required to expend significant capital and other resources to protect against and remedy any potential or existing security and data breaches and their consequences. We also face risks associated with security and data breaches affecting third parties with which we are affiliated or otherwise conduct business online.

We could be subject to additional sales tax liability, including liability for past sales.

U.S. Supreme Court decisions restrict the imposition of obligations to collect state and local sales taxes with respect to sales from out-of-state retailers.  As a result, approximately 38% of our revenue is not currently subject to sales tax or its equivalent. However, an increasing number of states have adopted or are considering laws that attempt to impose obligations on out-of-state retailers to collect taxes on their behalf.  Congress is also considering legislation allowing states to require out-of-state sellers to collect sales and use taxes.  It is not possible to predict with any degree of certainty the outcome of these initiatives or the impact of these initiatives on our business and marketing strategies that we are considering or may consider in the future.

An unfavorable change in U.S. Supreme Court guidance related to sales tax, or a successful assertion by one or more states may result in material tax liabilities, interest and penalties.  A change in state or federal laws, or our business model, business strategy, or marketing initiatives may require us to collect sales tax on transactions in which we do not currently collect such tax.  These developments, should they occur, may result in a decrease in future sales, may decrease our ability to compete, or otherwise harm our business. 

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Increased delivery costs, particularly if we are unable to offset them by increasing prices without a detrimental effect on customer demand, and the extent to which we offer shipping promotions to our customers, could adversely impact our profits.

We are impacted by increases in shipping rates charged by various shipping vendors relating to the procurement of merchandise from vendors and manufacturers, the shipment of merchandise to customers and the mailing of catalogs, which over the past few years have experienced volatility in comparison to historical levels. Variations in the mix and quantity of products we sell impact the cost to ship our products as do the shipping promotions we frequently offer to drive revenues. We currently expect that shipping and postal rates will continue to increase as well as the trend towards free shipping in the direct-to-consumer marketplace. In the case of deliveries to customers, we have negotiated favorable shipping rates, which increase at agreed upon levels over time, with one independent, third party shipping company pursuant to a long-term contract. If this relationship were to terminate or if the shipping company was unable to fulfill its obligations under the contract for any reason, particularly during peak shipping seasons, we would have to work with other shipping companies to deliver merchandise to customers, which could be at less favorable rates and could cause a disruption in our business. A significant increase in shipping promotions as well as any increase in shipping rates and related fuel and other surcharges passed on to us by our shipping company may adversely impact profits given that we may not be able to pass these increased costs directly to customers or offset them by increasing prices without a detrimental effect on customer demand.

We depend on relationships with vendors, manufacturers and other third parties; any adverse changes in these relationships could result in a failure to meet customer expectations which could result in lost sales.

We purchase merchandise from a wide variety of third party vendors, manufacturers and other sources pursuant to short- and long-term contracts and purchase orders. Our ability to identify and establish relationships with these parties, as well as access quality merchandise in a timely and efficient manner on acceptable terms and at acceptable costs, can be challenging. In particular, we purchase a significant amount of merchandise from vendors and manufacturers abroad and have experienced (and expect to continue to experience) increased costs for goods sourced in these markets. We depend on the ability of vendors and manufacturers in the U.S. and abroad to produce and deliver goods that meet applicable quality standards, which is impacted by a number of factors not within the control of these parties, such as political or financial instability, trade restrictions, tariffs, currency exchange rates, transport capacity, labor actions and costs, among others. In particular, Cornerstone is dependent, in significant part, upon independent, third party manufacturers to produce its private label merchandise.

Our failure to identify new vendors and manufacturers, maintain relationships with a significant number of existing vendors and manufacturers and/or access quality merchandise in a timely and efficient manner could cause us to miss customer delivery dates or delay scheduled promotions, which would result in the failure to meet customer expectations and could cause customers to cancel orders or cause us to be unable to source merchandise in sufficient quantities, which could result in lost sales.

The unanticipated loss of certain larger vendors could negatively impact our sales and profitability on a short term basis.

It is possible that one or more of our larger vendors could experience financial difficulties, including bankruptcy, or otherwise could elect to cease doing business with us. While we have periodically experienced the loss of a major vendor, if a major vendor or a number of our current larger vendors ceased doing business with us, this could materially and adversely impact our sales and profitability.

We may not be able to accurately predict and/or respond in a timely manner to evolving customer preferences and trends and industry standards, which could result in excess inventory, related markdowns and lost sales.

Our success depends, in significant part, on our ability to accurately predict, and respond in a timely manner to, changes in customer preferences and fashion, lifestyle and other trends and industry standards. While product mix and price points are continuously monitored and adjusted in an attempt to satisfy consumer demand and respond to changing economic and business conditions, we may not be successful in these efforts, and any sustained failure could result in excess inventory and related markdowns.

In addition, e-commerce is characterized by evolving industry standards, frequent new service and product introductions and enhancements, as well as changing customer demands and increasing privacy and data security needs. If we are not able to adapt quickly enough and/or in a cost-effective manner to these changes it could result in lost sales which would negatively impact our results of operations.

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We are currently the subject of a consent order issued by the FTC and violation of this consent order could result in significant civil penalties and/or an injunction enjoining HSN from engaging in prohibited activities, among other penalties or remedies.

In October 1996, HSN became subject to a consent order issued by the FTC which terminates on the later of April 15, 2019, or 20 years from the most recent date that the United States or the FTC files a complaint in federal court alleging any violation thereunder. Pursuant to this consent order, HSNi (including its subsidiaries and affiliates) is prohibited from making claims for specified categories of products, including claims that a given product can cure, treat or prevent any disease or have an effect on the structure or function of the human body, unless it has competent and reliable scientific evidence to substantiate such claims. Violation of this consent order may result in the imposition of significant civil penalties for non-compliance and related redress to consumers and/or the issuance of an injunction enjoining us from engaging in prohibited activities. The FTC periodically investigates our business and operations on an ongoing basis for purposes of determining its compliance with the consent order.

We may be subject to claims for representations made in connection with the sale and promotion of merchandise or for harm experienced by customers who purchase merchandise from us.

The manner in which we sell and promote merchandise and related claims and representations made in connection with these efforts is regulated by federal, state and local law. We may be exposed to potential liability from claims by consumers or from federal, state and local regulators and law enforcement agencies, including, but not limited to, for personal injury, product safety, wrongful death and damage to personal property relating to merchandise sold and/or misrepresentation of merchandise features and/or benefits. In certain instances, we have the right to seek indemnification for related liabilities from our vendors and may require such vendors to carry minimum levels of product liability and errors and omissions insurance. These vendors, however, may be unable to obtain suitable coverage or maintain this coverage on acceptable terms; this insurance may provide inadequate coverage against all potential claims or may not even be available with respect to a particular claim. If insurance is insufficient or unavailable, our vendor may have insufficient resources to cover their indemnification obligations, or if our vendor ceases to do business, our results of operations could be negatively impacted. Even if vendors can satisfy their financial obligations, our brand and reputation could be negatively impacted.

Failure to effectively manage our Flexpay program could result in unplanned losses.

HSN offers Flexpay, a program which customers may pay for certain merchandise in two to six interest-free, monthly credit or debit card installments. This is an effective tool for driving sales, primarily for higher-priced items. We maintain allowances for estimated losses resulting from the inability of customers to make required payments. While actual losses due to the inability of customers to make required payments have historically been within estimates, they may increase in a given period or exceed related estimates. As Flexpay usage continues to grow, we may experience these losses at greater rates, which will require us to maintain greater allowances for doubtful accounts of estimated losses than we have historically. To the extent that Flexpay losses exceed historical levels, our results of operations may be negatively impacted.

We may fail to protect our intellectual property rights within the full scope and manner available to us under applicable law or statute or may be accused of infringing upon the intellectual property rights of third parties.

We regard our intellectual property rights, including patents, service marks, trademarks and domain names, copyrights and trade secrets, as critical to our success. We rely heavily upon software, databases and other systemic components that are necessary to manage and support our business operations.

We are subject to legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of the trademarks, copyrights, patents and other intellectual property rights of third parties. In addition, litigation may be necessary in the future to enforce our intellectual property rights, protect trade secrets or to determine the validity and scope of proprietary rights claimed by others. Any litigation of this nature, regardless of outcome or merit, could result in substantial costs and diversion of management and technical resources, any of which could adversely affect our business, financial condition and results of operations. Patent litigation tends to be particularly protracted and expensive. Our failure to protect our intellectual property rights in a meaningful manner or challenges to related contractual rights could result in erosion of brand names and limit our ability to control marketing on or through the internet using our various domain names or otherwise, which could adversely affect our business, financial condition and results of operations.

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Failure to comply with existing laws, rules and regulations, or to obtain and maintain required licenses and rights could subject us to additional liabilities.

We market and provide a broad range of merchandise through television, digital, catalogs and other channels. As a result, we are subject to a wide variety of statutes, rules, regulations, policies and procedures in various jurisdictions which are subject to change at any time, including laws regarding product safety, consumer protection, privacy, the regulation of retailers generally, the importation, sale and promotion of merchandise and the operation of retail stores and warehouse facilities, as well as laws and regulations applicable to the internet and businesses engaged in digital commerce, such as those regulating the sending of unsolicited, commercial electronic mail. Our failure to comply with these laws and regulations could result in fines and/or proceedings against us by governmental agencies and/or consumers, which could adversely affect our business, financial condition and results of operations. Moreover, unfavorable changes in the laws, rules and regulations applicable to us could decrease demand for merchandise offered by us, negatively impact our marketing efforts, increase costs, subject us to additional liabilities and/or otherwise adversely affect our businesses.

Our leveraged capital structure may adversely affect our financial condition, results of operations and earnings per share.

We completed a leveraged recapitalization transaction during the fiscal quarter ending March 31, 2015, which included increasing our level of indebtedness and the payment of a special cash dividend of approximately $524 million. The existence of increased debt could have important consequences including, among other things:

• require a more substantial portion of our cash flows from operations to be dedicated to the payment of principal and interest on our indebtedness;

• limit our ability to use cash flow or obtain additional financing for future working capital, capital expenditures, acquisitions, investments, dividends, stock repurchases or other general corporate purposes;

• increase our vulnerability to general economic and industry conditions; or

• expose us to the risk of increased interest rates for that portion of our borrowings under our credit facilities that are at variable interest rates.

Our credit facility includes restrictive financial and non-financial covenants. Limitations imposed as a part of the debt, such as the availability of credit and the existence of restrictive covenants may, among other things, make it difficult for us to satisfy our financial obligations; and/or limit our ability to respond to business opportunities.

There are risks associated with our acquisitions.

Mergers and acquisitions entail a number of risks including, among other things, higher than anticipated acquisition costs and expenses, the difficulty and expense of integrating the operations and personnel of the companies and the potential loss of key employees and customers as a result of changes in management. We may not be successful in overcoming these risks or any other problems encountered in connection with any acquisition.

Acquisition valuations require us to make certain estimates and assumptions to determine the fair value of the acquired entities (including the underlying assets and liabilities). If our estimates or assumptions used to value acquired assets and liabilities are not accurate, we may be exposed to losses that may be material.

Risks Related to Our Common Stock

The shareholders’ rights plan adopted by the Board of Directors in December 2008 may inhibit takeovers that would otherwise be beneficial to shareholders.

In the fourth quarter of 2008, our Board of Directors approved the creation of a Series A Junior Participating Preferred Stock, adopted a shareholders’ rights plan and declared a dividend of one right for each outstanding share of common stock held by our shareholders. Initially, these rights, which trade with the shares of our common stock, are not exercisable. Under the rights plan, these rights will be exercisable if a person or group acquires or commences a tender or exchange offer for 15% or more of our common stock (except for certain grandfathered persons to which higher thresholds apply). If the rights become exercisable, each right will permit the holder, other than the “acquiring person,” to purchase from us shares of common stock at a 50% discount to the then prevailing market price. As a result, the rights will cause substantial dilution to a person or group that becomes an “acquiring person” on terms not approved by our Board of Directors. The existence of these rights may prevent, discourage or delay us from being acquired, even if such acquisition would be beneficial to our shareholders.

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The market price and trading volume of our common stock may be volatile and may face negative pressure.

Our stock price has experienced, and could continue to experience in the future, substantial volatility as a result of many factors, including persistent adverse macroeconomic conditions, broad market fluctuations and public perception of the prospects for the retail industry. Our failure to meet market expectations would also likely result in a decline in the market price of our stock. These and other factors may result in short-term or long-term negative pressure on the value of our common stock.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 2. PROPERTIES

HSNi owns its corporate headquarters in St. Petersburg, Florida, which consist of approximately 600,000 square feet of office space and include executive offices, television studios, showrooms, broadcast facilities and administrative offices for HSN. HSN owns its fulfillment center in Piney Flats, Tennessee. HSN leases its fulfillment centers in Fontana, California; Roanoke, Virginia; and Ronkonkoma, New York; as well as four outlet stores and other properties in various locations in the United States for administrative offices and data centers pursuant to leases that expire in 2015 through 2022. Cornerstone owns an office and storage facility in Franconia, New Hampshire. Cornerstone leases its fulfillment centers in West Chester, Ohio and Phoenix, Arizona. It also leases other properties consisting of administrative offices, 11 retail stores and outlets, and photo centers in various locations throughout the United States, all pursuant to leases with expiration dates ranging from 2015 to 2020.

HSNi believes that the duration of each lease is adequate and does not anticipate any future problems renewing or obtaining suitable leases for its principal properties. HSNi believes that its principal properties, whether owned or leased, are currently adequate for the purposes for which they are used and are suitably maintained for these purposes. From time to time, HSNi considers various alternatives related to its long term facilities needs. While HSNi management believes existing facilities are adequate to meet its short term needs, it may become necessary to lease or acquire additional or alternative space to accommodate future growth.

ITEM 3. LEGAL PROCEEDINGS

In the ordinary course of business, we are involved in various legal matters arising out of our operations. These matters may relate to claims involving property, personal injury, contract, intellectual property (including patent infringement), sales tax, regulatory compliance, employment matters and other claims. As of the date of this filing, we are not a party to any legal proceedings that are reasonably expected to have a material adverse effect on our business, results of operations, financial condition or cash flows; however, litigation matters are subject to inherent uncertainties and the results of these matters cannot be predicted with certainty. An unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition or cash flows. Moreover, any claims or regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources.

See Note 13 – Commitments and Contigencies in Part II, Item 8 for additional information regarding legal matters in which we are involved.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market and Dividend Information

Our common stock trades on the NASDAQ Global Select Market under the symbol HSNI. The table below sets forth the high and low per share sales prices of our common stock, as reported by the NASDAQ Global Select Market, and the dividends declared for the periods indicated.

	Sales Price
Fiscal 2014	High		Low		Dividends
Fourth Quarter	$	77.82	$	59.67	$	0.35
Third Quarter	$	62.32	$	54.40	$	0.25
Second Quarter	$	61.40	$	52.93	$	0.25
First Quarter	$	62.59	$	53.00	$	0.25
Fiscal 2013
Fourth Quarter	$	63.54	$	50.03	$	0.25
Third Quarter	$	65.00	$	52.79	$	0.18
Second Quarter	$	58.56	$	50.76	$	0.18
First Quarter	$	60.87	$	49.14	$	0.18

During the fourth quarters of 2014 and 2013, our Board of Directors approved increases in our quarterly cash dividend of 40% and 39%, respectively. In January 2015, our Board of Directors approved a special cash dividend of $10.00 per share payable February 19, 2015 to shareholders of record as of February 9, 2015. Additionally, in February 2015, our Board of Directors approved a quarterly cash dividend of $0.35 per share payable March 25, 2015 to shareholders of record as of March 11, 2015. We currently expect to continue to declare and pay quarterly dividends of an amount similar to our past quarterly declaration. However, any determination to pay cash dividends will be at the discretion of our Board of Directors and will depend upon our operating results, financial condition and capital requirements, general business conditions and such other factors that the Board of Directors considers relevant. Our credit agreement limits the amount of and our ability to pay cash dividends.

Holders

As of January 21, 2015, there were 1,512 shareholders of record of our common stock. Because many of our shares of common stock are held by brokers and other institutions on behalf of shareholders, we are not able to estimate the total number of beneficial shareholders represented by these record holders.

Issuer Purchases of Equity Security

On September 27, 2011, our Board of Directors authorized us to repurchase up to 10 million shares of our common stock. In July 2014, HSNi completed the 10 million share repurchase program at an aggregate cost of $451.0 million, representing an average cost of $45.10 per share.

Effective January 27, 2015, our Board of Directors authorized a new share repurchase program allowing us to repurchase up to 4 million shares of our common stock, principally to offset dilution related to HSNi's equity compensation programs. Under the terms of the share repurchase program, HSNi will repurchase its common stock from time to time through privately negotiated or open market transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended, or by any combination of such methods. The timing of any repurchases and actual number of shares repurchased will depend on a variety of factors, including the stock price, corporate and regulatory requirements, restrictions under the company’s debt obligations and other market and economic conditions. The repurchase program may be suspended or discontinued by HSNi at any time.

There were no shares repurchased under either share repurchase program during the three months ended December 31, 2014.

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Performance Graph

The graph depicted below compares the five-year performance of our common stock with the cumulative total return on the S&P 500 Retailing Index and the Russell 2000 Index from December 31, 2009 through December 31, 2014.

	12/31/2009	12/31/2010	12/31/2011	12/31/2012	12/31/2013	12/31/2014
HSN, Inc.	100.00	151.81	180.22	277.31	318.16	395.12
S&P 500 Retailing Index	100.00	128.49	137.48	176.46	259.37	285.15
Russell 2000 Index	100.00	126.86	121.56	141.43	196.34	205.95

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ITEM 6. SELECTED FINANCIAL DATA

The following table presents selected consolidated financial data for HSNi. The information in this table is not necessarily indicative of future performance and should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations,” and our audited consolidated financial statements and related notes included herein.

For information about the shares used in computing earnings per share, see Note 10 of Notes to Consolidated Financial Statements.

	Year Ended December 31,
	2014		2013		2012		2011		2010
	(In thousands, except per share data)
Statement of Operations Data:
Net sales	$	3,587,995	$	3,403,983	$	3,266,739	$	3,069,356	$	2,884,308
Operating income	284,609		282,654		258,744		239,042		198,803
Income from continuing operations	172,984		178,449		136,497		127,652		100,441
Net income (1)	172,984		178,449		130,675		123,070		98,523
Income from continuing operations per share:
Basic	$	3.28	$	3.33	$	2.42	$	2.18	$	1.75
Diluted	$	3.23	$	3.25	$	2.36	$	2.10	$	1.69
Net income per share:
Basic	$	3.28	$	3.33	$	2.32	$	2.10	$	1.72
Diluted	$	3.23	$	3.25	$	2.25	$	2.03	$	1.65
Shares used in computing earnings per share:
Basic	52,736		53,640		56,314		58,636		57,414
Diluted	53,633		54,857		57,956		60,689		59,546
Dividends declared per common share	$	1.10	$	0.79	$	0.555	$	0.125	$	—
Balance Sheet Data (end of period):
Working capital	$	440,322	$	391,147	$	384,868	$	505,901	$	451,406
Total assets	1,432,194		1,337,923		1,331,952		1,394,973		1,345,743
Total debt, including current maturities	228,126		240,625		250,000		239,111		308,758
Other long-term liabilities, including deferred income taxes	105,366		104,606		94,988		101,947		100,107

(1) Loss from discontinued operations for the periods presented includes the income and losses for The Territory Ahead and Smith+Noble, two brands sold by Cornerstone in 2012.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this annual report. Historical results and trends which might appear should not be taken as indicative of future operations. Our results of operations and financial condition, as reflected in the accompanying consolidated financial statements and related notes, are subject to management’s evaluation and interpretations of business conditions, changing market conditions and other factors.

Management Overview

HSNi offers innovative, differentiated retail experiences and markets and sells a wide range of third party and proprietary merchandise directly to consumers through its two operating segments, HSN and Cornerstone. HSN's business platforms include (i) the television home shopping programming broadcast on the HSN television networks; (ii) the HSN.com website; (iii) mobile applications; (iv) outlet stores; and (v) direct-response television marketing. Cornerstone's business platforms include (i) catalogs, consisting primarily of the Cornerstone portfolio of leading print catalogs which includes Ballard Designs, Chasing Fireflies, Frontgate, Garnet Hill, Grandin Road, Improvements and TravelSmith; (ii) websites, consisting primarily of the seven branded websites operated by Cornerstone; (iii) retail and outlet stores; and (iv) mobile devices.

Sources of Revenue

HSN revenue includes merchandise sales originating from the live television broadcasts of its programming 24 hours per day, seven days a week; HSN2, a network that primarily distributes taped programming on a limited distribution basis; the HSN.com website; mobile handheld devices; through outlet stores; and direct-response television marketing. HSN also sells merchandise through its "Autoship" program under which customers receive scheduled merchandise shipments according to a pre-determined calendar.

Cornerstone sells private label and third party merchandise through its assortment of catalogs, digital sites and retail and outlet stores. Cornerstone consists of the brands of Ballard Designs, Chasing Fireflies, Frontgate, Garnet Hill, Grandin Road, Improvements and TravelSmith.

Products

HSNi sells a wide array of merchandise across its various channels of distribution. HSN merchandise categories primarily consist of jewelry, fashion (apparel & accessories), beauty & health, and home & other (including household, home design, electronics, culinary and other). HSN manages its product mix to provide a balance between satisfying existing customer demand, generating interest from potential viewers and customers, providing new merchandise to its viewership and maximizing airtime and internet efficiency. Cornerstone merchandise categories generally consist of home and outdoor furnishings and apparel & accessories.

HSNi management believes that merchandise diversification, combined with an interactive multi-channel distribution strategy, appeals to a broader segment of potential customers and is an important part of its overall business strategy. HSNi is continually developing new merchandise offerings from existing, potential and future suppliers, to supplement its existing product lines.

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Results of Operations

Net Sales

Net sales primarily relate to the sale of merchandise, including shipping and handling fees, and are reduced by incentive discounts and actual and estimated sales returns. Sales taxes collected are not included in net sales. Digital sales include sales placed through our internet websites and our mobile applications, including tablets and smart phones.

Revenue is recorded when delivery to the customer has occurred. Delivery is considered to have occurred when the customer takes title and assumes the risks and rewards of ownership, which is on the date of shipment. HSNi’s sales policy allows customers to return virtually all merchandise for a full refund or exchange, subject to pre-established time restrictions.

	Year Ended December 31,
	2014		Change	2013		Change	2012
	(Dollars in thousands)
HSN	$	2,476,088	7%	$	2,312,382	2%	$	2,265,026
Cornerstone	1,111,907		2%	1,091,601		9%	1,001,713
Total HSNi net sales	$	3,587,995	5%	$	3,403,983	4%	$	3,266,739

HSNi net sales in 2014 increased 5%, or $184.0 million, due to 7% sales growth at HSN and 2% sales growth at Cornerstone. Digital sales grew 9% with penetration increasing 150 basis points to 48.0%, up from 46.5% in the prior year. The number of units shipped in 2014 increased 4% to 63.6 million and the average price point increased 1% to $63.24.    

HSNi net sales in 2013 increased 4%, or $137.2 million, due to 2% sales growth at HSN and 9% sales growth at Cornerstone. Digital sales grew 9% with penetration increasing 210 basis points to 46.5%, up from 44.4% in the prior year. The number of units shipped in 2013 increased 4% to 61.2 million and the average price point decreased 1% to $62.37.

HSN

HSN net sales in 2014 increased 7%, or $163.7 million. Sales grew in all divisions except Jewelry with significant growth in the home design category. Digital sales grew 14% with penetration increasing 240 basis points to 39.4%, up from 37.0% in the prior year. The return rate decreased 110 basis points to 17.7% from 18.8% in the prior year primarily due to a shift from merchandise with historically higher return rates, such as jewelry, to merchandise with lower return rates, such as home design. Units shipped in 2014 increased 5% to 48.4 million. The average price point increased 2% to $59.10 primarily due to a decrease in clearance sales.

During 2014, we recognized $5.0 million of revenue related to unused merchandise credits where we determined it was not probable we have an obligation to escheat the value of the cards under unclaimed property laws and the likelihood of redemption was considered remote (“breakage”). This was the first year in which we were able to estimate and recognize merchandise credit breakage and, therefore, it included the breakage revenue related to merchandise credits issued since inception of this program. While we expect to continue to recognize merchandise credit breakage in future periods, the amounts will be significantly less than in 2014 due to the one-time multi-year inclusion in 2014.

HSN net sales in 2013 increased 2%, or $47.4 million. Sales grew in the Beauty & Health and Fashion divisions but declined in Jewelry and Home & Other. Within Home & Other, the increases in home design and household were more than offset by the decreases in culinary and electronics. HSN repositioned the jewelry and culinary businesses in 2013 through changes in product and brand assortment and, as a result, dedicated lower airtime to these product categories. Digital sales grew 7% and penetration increased 160 basis points to 37.0%, up from 35.4% in the prior year. Digital sales were tempered in the first quarter by the launch of the digital site redesign across all HSN digital platforms while HSN implemented its new technology and our customers acclimated themselves with the new website design and capabilities. The return rate decreased 80 basis points to 18.8% from 19.6% in the prior year primarily due to the shift in product mix to categories with lower return rates as well as experiencing lower than historical return rates in many of its product categories. The gross units shipped increased 5% to 46.1 million while average price point decreased 4% to $58.21 primarily due to an increase in clearance activity and changes in product mix.

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Divisional product mix at HSN is provided in the table below:

	Year Ended December 31,
	2014		2013		2012
Jewelry	9.6	%	11.1	%	13.1	%
Fashion (apparel & accessories)	14.0	%	13.9	%	13.1	%
Beauty & Health	24.3	%	24.5	%	22.7	%
Home & Other (including household, home design, electronics, culinary and other)	52.1	%	50.5	%	51.1	%
Total	100.0	%	100.0	%	100.0	%

Cornerstone

Cornerstone net sales in 2014 increased 2%, or $20.3 million. The increase in net sales was driven primarily by sales growth in the home brands, partially offset by lower sales in the apparel brands, particularly Garnet Hill. Digital sales grew 3% with penetration increasing 60 basis points to 67.0%, up from 66.4% in the prior year. The return rate increased 20 basis points to 13.1%. Catalog circulation increased 2% to 325.1 million compared to the prior year.

Cornerstone net sales in 2013 increased 9%, or $89.9 million. The increase in net sales was driven by sales growth in the home brands. Digital sales grew 12% with penetration increasing 150 basis points to 66.4%, up from 64.9% in the prior year. The return rate decreased 50 basis points to 12.9% due primarily to changes in product mix. Catalog circulation increased 5% to 318.2 million compared to the prior year.

The brand mix at Cornerstone is provided in the table below:

	Year Ended December 31,
	2014		2013		2012
Home brands (Ballard Designs, Frontgate, Grandin Road and Improvements)	76.5	%	73.9	%	71.8	%
Apparel brands (Chasing Fireflies, Garnet Hill and TravelSmith) (a)	23.5	%	26.1	%	28.2	%
Total	100.0	%	100.0	%	100.0	%
(a) Chasing Fireflies was acquired in April 2012.

Cost of Sales and Gross Profit

Cost of sales consists primarily of the cost of products sold, shipping and handling costs and compensation and other employee-related costs for personnel engaged in warehouse functions. Cost of products sold includes merchandise cost, inbound freight and duties and certain allocable general and administrative costs, including certain warehouse costs.

	Year Ended December 31,
	2014			Change	2013			Change	2012
	(Dollars in thousands)
Gross profit:
HSN	$	852,046		7%	$	796,705		1%	$	786,650
HSN gross margin	34.4		%	(10 bp)	34.5		%	(20 bp)	34.7		%
Cornerstone	$	421,016		(3)%	$	433,110		9%	$	397,074
Cornerstone gross margin	37.9		%	(180 bp)	39.7		%	10 bp	39.6		%
HSNi	$	1,273,062		4%	$	1,229,815		4%	$	1,183,724
HSNi gross margin	35.5		%	(60 bp)	36.1		%	(10 bp)	36.2		%

bp = basis points

HSN

Gross profit for HSN in 2014 increased 7%, or $55.3 million, compared to the prior year. Gross margin decreased 10 basis points to 34.4% primarily due to an increase in net shipping expense driven by higher shipping promotions and shipping costs, offset by lower clearance sales.

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Gross profit for HSN in 2013 increased 1%, or $10.1 million, compared to the prior year. Gross margin decreased 20 basis points to 34.5% primarily due to an increase in net shipping expense driven by higher shipping promotions and shipping costs.

Cornerstone

Gross profit for Cornerstone in 2014 decreased 3%, or $12.1 million, compared to the prior year. Gross margin decreased 180 basis points from 39.7% to 37.9% primarily due to increased promotional activity in response to competitive market conditions and higher liquidations and inventory reserves related to excess inventory positions.

Gross profit for Cornerstone in 2013 increased 9%, or $36.0 million, compared to the prior year. Gross margin increased 10 basis points from 39.6% to 39.7% primarily due to an increase in product margins driven by product mix and selective price increases.

Selling and Marketing Expense

Selling and marketing expense consists primarily of advertising and promotional expenditures, compensation and other employee-related costs (including stock-based compensation) for personnel engaged in customer service, sales and merchandising, production and programming functions and on-air distribution costs. Advertising and promotional expenditures primarily include catalog production and distribution costs and online marketing, including fees paid to search engines and third-party distribution partners.

	Year Ended December 31,
	2014			Change	2013			Change	2012
	(Dollars in thousands)
HSN	$	410,977		5%	$	392,715		2%	$	385,243
As a percentage of HSN net sales	16.6		%	(40 bp)	17.0		%	0 bp	17.0		%
Cornerstone	$	312,430		3%	$	303,079		9%	$	277,079
As a percentage of Cornerstone net sales	28.1		%	30 bp	27.8		%	10 bp	27.7		%
HSNi	$	723,407		4%	$	695,794		5%	$	662,322
As a percentage of HSNi net sales	20.2		%	(20 bp)	20.4		%	10 bp	20.3		%

HSNi's selling and marketing expense in 2014 increased 4%, or $27.6 million, and was 20.2% of net sales compared to 20.4% in the prior year. HSNi's selling and marketing expense in 2013 increased 5%, or $33.5 million, and was 20.4% of net sales compared to 20.3% in the prior year.

HSN

HSN's selling and marketing expense in 2014 increased 5%, or $18.3 million, primarily due to additional distribution of HSN2, media spend for direct-response television marketing, higher net marketing expense and an increase in healthcare costs. Selling and marketing expense was 16.6% of net sales compared to 17.0% in the prior year due to the improved leverage of its fixed costs, particularly its distribution and employee-related costs.

HSN's selling and marketing expense in 2013 increased 2%, or $7.5 million, and was 17.0% of net sales, consistent with the prior year. The increase in expense was primarily due increases in employee-related and digital marketing costs, partially offset by lower net marketing expense.

Cornerstone

Cornerstone's selling and marketing expense in 2014 increased 3%, or $9.4 million, and was 28.1% of net sales compared to 27.8% in the prior year. The increase was primarily due to additional catalog costs associated with a 3% increase in circulation and increases in digital marketing costs and employee-related costs, particularly for its call center.

    Cornerstone's selling and marketing expense in 2013 increased 9%, or $26.0 million, and was 27.8% of net sales compared to 27.7% in the prior year. The increase was primarily due to additional catalog costs associated with a 5% increase in Cornerstone's catalog circulation and increases in employee-related and digital marketing costs.

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General and Administrative Expense

General and administrative expense consists primarily of compensation and other employee-related costs (including stock-based compensation) for personnel engaged in finance, legal, tax, human resources, information technology and executive management functions, bad debts, facilities costs and fees for professional services.

	Year Ended December 31,
	2014			Change	2013			Change	2012
	(Dollars in thousands)
HSN	$	159,208		3%	$	154,434		(5)%	$	162,417
As a percentage of HSN net sales	6.4		%	(30 bp)	6.7		%	(50 bp)	7.2		%
Cornerstone	$	61,904		10%	$	56,344		(9)%	$	62,236
As a percentage of Cornerstone net sales	5.6		%	40 bp	5.2		%	(100 bp)	6.2		%
HSNi	$	221,112		5%	$	210,778		(6)%	$	224,653
As a percentage of HSNi net sales	6.2		%	0 bp	6.2		%	(70 bp)	6.9		%

HSNi’s general and administrative expense in 2014 increased 5%, or $10.3 million, and remained flat at 6.2% of sales compared to the prior year. HSNi’s general and administrative expense in 2013 decreased 6%, or $13.9 million, and was 6.2% of net sales compared to 6.9% in the prior year.

HSN

HSN’s general and administrative expense in 2014 increased 3%, or $4.8 million, and was 6.4% of net sales compared to 6.7% in the prior year. The increase in expense was primarily due to higher bad debt expense driven by increased usage of HSN's extended payment program ("Flexpay") and an increase in employee-related costs. The increase in employee-related costs was primarily related to performance-based incentives, partially offset by a decrease in severance-related costs.

HSN’s general and administrative expense in 2013 decreased 5%, or $8.0 million, and was 6.7% of net sales compared to 7.2% in the prior year. The decrease in expense was primarily due lower bad debt expense related to Flexpay and lower consulting fees.

Cornerstone

Cornerstone’s general and administrative expense in 2014 increased 10%, or $5.6 million, and was 5.6% of net sales compared to 5.2% in the prior year. The increase in expense was primarily due to a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC") and related legal fees.

Cornerstone’s general and administrative expense in 2013 decreased 9%, or $5.9 million, and was 5.2% of net sales compared to 6.2% in the prior year. The decrease in expense was primarily due a $7.8 million sales tax settlement at Cornerstone that occurred in the prior year. Additionally, Cornerstone recognized non-cash fair value adjustments in the fourth quarter of 2013 related to a contingent consideration obligation and certain intangible assets associated with its 2012 acquisition of Chasing Fireflies. The net impact of the reduction of the contingent consideration obligation and the intangible asset impairment charge was a reduction of expense of $0.6 million.

Depreciation and Amortization

	Year Ended December 31,
	2014			Change	2013			Change	2012
	(Dollars in thousands)
HSN	$	29,762		5%	$	28,372		7%	$	26,486
Cornerstone	14,172			16%	12,217			6%	11,519
HSNi	$	43,934		8%	$	40,589		7%	$	38,005
As a percentage of HSNi net sales	1.2		%	0 bp	1.2		%	0 bp	1.2		%

Depreciation and amortization in 2014 increased 8%, or $3.3 million, compared to the prior year. The increase was primarily due to the incremental depreciation associated with recent capital expenditures for facilities, including distribution centers, and information and digital technology.

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Depreciation and amortization in 2013 increased 7%, or $2.6 million, compared to the prior year. The increase was primarily due to the incremental depreciation associated with recent capital expenditures for information and digital technology.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP measure and is defined in Note 6 of Notes to Consolidated Financial Statements.

	Year Ended December 31,
	2014			Change	2013			Change	2012
	(Dollars in thousands)
HSN	$	289,141		11%	$	261,292		4%	$	250,836
As a percentage of HSN net sales	11.7		%	40 bp	11.3		%	20 bp	11.1		%
Cornerstone	$	53,199		(31)%	$	76,574		4%	$	73,441
As a percentage of Cornerstone net sales	4.8		%	(220 bp)	7.0		%	(30 bp)	7.3		%
HSNi	$	342,340		1%	$	337,866		4%	$	324,277
As a percentage of HSNi net sales	9.5		%	(40 bp)	9.9		%	0 bp	9.9		%

HSNi's Adjusted EBITDA in 2014 increased 1%, or $4.5 million, and was 9.5% of net sales, compared to 9.9% in the prior year. The increase in Adjusted EBITDA was due to a 5% increase in net sales offset by a 60 basis point decrease in gross margin and 4% increase in operating expenses (excluding non-cash charges and the $3.1 million CPSC settlement). HSNi's Adjusted EBITDA in 2013 increased 4%, or $13.6 million, and was 9.9% of net sales, consistent with the prior year. The increase in Adjusted EBITDA was due to a 4% increase in net sales, partially offset by a 4% increase in operating expenses (excluding non-cash charges and a $7.8 million sales tax settlement in the prior year).

HSN

HSN's Adjusted EBITDA in 2014 increased 11%, or $27.8 million, and was 11.7% of net sales compared to 11.3% in the prior year. The increase in Adjusted EBITDA is primarily due to a 7% increase in net sales, partially offset by a 4% increase in operating expenses (excluding non-cash charges). Operating expenses increased primarily due to additional distribution of HSN2; employee-related costs, particularly for performance-based incentives and healthcare; media spend for direct-response television marketing and higher net marketing expense. HSN's operating expenses (excluding non-cash charges) were 22.6% of net sales compared to 23.2% in the prior year.

HSN's Adjusted EBITDA in 2013 increased 4%, or $10.5 million, and was 11.3% of net sales compared to 11.1% in the prior year. The increase in Adjusted EBITDA is primarily due to a 2% increase in net sales and 50 basis point improvement in operating expense leverage (excluding non-cash charges), partially offset by a 20 basis point decline in gross margin. HSN's operating expenses (excluding non-cash charges) were 23.2% of net sales compared to 23.7% in the prior year. Decreases in HSN's professional services fees and bad debt expense were offset by increases in employee-related and digital marketing costs.

Cornerstone

Cornerstone's Adjusted EBITDA in 2014 decreased 31%, or $23.4 million, primarily due to the 180 basis point decrease in gross margin and 40 basis point decrease in operating expense leverage (excluding non-cash charges and the $3.1 million CPSC settlement). The increase in operating expenses is primarily due to catalog costs associated with a 2% increase in circulation; employee-related costs and investments in digital marketing.

Cornerstone's Adjusted EBITDA in 2013 increased 4%, or $3.1 million, primarily due to a 9% increase in net sales, partially offset by a 10% increase in operating expenses (excluding non-cash charges and a $7.8 million sales tax settlement in the prior year). The increase in operating expenses was largely due to catalog costs associated with a 5% increase in circulation; employee-related costs; the incremental expenses from the addition of Chasing Fireflies to the portfolio in April 2012 and investments in digital marketing.

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Operating Income

	Year Ended December 31,
	2014			Change	2013			Change	2012
	(Dollars in thousands)
HSN	$	252,098		14%	$	221,184		4%	$	212,503
As a percentage of HSN net sales	10.2		%	60 bp	9.6		%	20 bp	9.4		%
Cornerstone	$	32,511		(47)%	$	61,470		33%	$	46,241
As a percentage of Cornerstone net sales	2.9		%	(270 bp)	5.6		%	100 bp	4.6		%
HSNi	$	284,609		1%	$	282,654		9%	$	258,744
As a percentage of HSNi net sales	7.9		%	(40 bp)	8.3		%	40 bp	7.9		%

HSNi's operating income in 2014 increased 1%, or $2.0 million, and was 7.9% of net sales compared to 8.3% in the prior year. The increase was primarily due to 5% growth in net sales offset by 60 basis point decrease in gross margin and a 4% increase in operating expenses. The increase in operating expenses was primarily due to increases in employee-related costs; selling and marketing costs, including catalog costs; additional distribution costs for HSN2; incremental depreciation expense; and the $3.1 million CPSC settlement.

HSNi's operating income in 2013 increased 9%, or $23.9 million, and was 8.3% of net sales compared to 7.9% in the prior year. The increase was primarily due to 4% growth in net sales offset by a 2% increase in operating expenses. The increase in operating expenses was primarily due to increases in employee-related costs, catalog costs and digital marketing; partially offset by a $7.8 million sales tax settlement at Cornerstone in the prior year and decreases in professional services fees and bad debt expenses at HSN.

Other Income (Expense)

	Year Ended December 31,
	2014			Change	2013			Change	2012
	(Dollars in thousands)
Interest income	$	184		(10)%	$	205		(64)%	$	564
Interest expense	(7,266		)	8%	(6,718		)	(68)%	(20,811		)
Loss on debt extinguishment	—			NA	—			NA	(18,627		)
Total other expense, net	$	(7,082	)	9%	$	(6,513	)	(83)%	$	(38,874	)
As a percentage of HSNi net sales	0.2		%	0 bp	0.2		%	(100 bp)	(1.2		)%

Interest Expense

On April 24, 2012, HSNi entered into a $600 million five-year syndicated credit agreement which replaced the credit agreement that was set to expire in July 2013.  On July 31, 2012, HSNi drew $250 million from its delayed draw term loan under the new credit agreement. The proceeds of the term loan were used to fully redeem the $240 million 11.25% Senior Notes due 2016 (“Senior Notes”) on August 1, 2012 as discussed below. As a result of these refinancing transactions, interest expense decreased 68% in 2013, or $14.1 million.

Loss on Debt Extinguishment

On August 1, 2012, HSNi fully redeemed its $240 million Senior Notes. The Senior Notes were redeemed for $253.5 million, or 105.625% of the principal amount.  HSNi reported approximately $18.6 million in “Loss on debt extinguishment” primarily associated with redemption of the Senior Notes in the third quarter of 2012.  These charges resulted from the redemption premium of $13.5 million and $5.1 million related to the write-off of unamortized issuance costs and original issue discount. See Note 7 of Notes to Consolidated Financial Statements for further discussion of the redemption of the Senior Notes.

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Income Tax Provision

For the years ended December 31, 2014, 2013 and 2012, HSNi recorded tax provisions from continuing operations of $104.5 million, $97.7 million and $83.4 million, respectively, which represent effective tax rates of 37.7%, 35.4% and 37.9%, respectively.

The effective tax rate in 2014 was unfavorably impacted by the non-deductibility of the $3.1 million settlement with the CPSC. The effective tax rate in 2013 was favorably impacted by discrete tax benefits of $3.7 million realized in the third quarter of 2013 and the favorable tax treatment of the fair value adjustments related to the 2012 acquisition of Chasing Fireflies recorded in the fourth quarter of 2013.  Excluding the impact of these items, the 2014 and 2013 effective tax rates would have been 37%. The effective tax rates in 2014, 2013 and 2012, excluding the impact of the above items, are higher than the federal statutory rate of 35% due principally to state income taxes.

Discontinued Operations

In May 2012 and July 2012, substantially all of the assets and certain liabilities of Smith+Noble, a Cornerstone brand specializing in window treatments, and The Territory Ahead, a Cornerstone brand specializing in casual apparel for men and women, were sold for $5.5 million and $1.1 million, respectively. The results of operations for Smith+Noble and The Territory Ahead are presented separately as “Loss from discontinued operations, net of tax” in the consolidated statements of operations for all periods presented. Cornerstone recorded pre-tax losses of $6.0 million on the sales, including related impairment charges, in the second quarter of 2012, which is included in “Loss from discontinued operations, net of tax” in the accompanying consolidated statements of operations.

Liquidity and Capital Resources

As of December 31, 2014, HSNi had $160.0 million of cash and cash equivalents, down from $196.4 million as of December 31, 2013.

Net cash provided by operating activities attributable to continuing operations was $138.7 million in 2014 compared to $231.9 million in 2013, a decrease of $93.2 million. This decrease was primarily due to increases in inventories and accounts receivable, partially offset by improved operating performance and the timing of income tax payments.

Inventories grew in 2014 as HSN normalized its inventory levels to support future sales growth, made strategic investments in certain proprietary product categories and enhanced its digital assortment. These measures have resulted in inventory in 2014 increasing by 31% compared to prior year. Cornerstone inventories increased 12% in 2014 primarily due to the growth in “full price” merchandise, primarily in the Home brands, to support their new initiatives.

The growth in accounts receivable was primarily due to HSN's sales growth and an increase in its offering of Flexpay, an installment program allowing customers to pay for select merchandise in two to six interest-free, monthly payments. Consistent with prior years, HSN continued to increase its offering of Flexpay. This program increases the Company's cash requirements as the sales proceeds get delayed by using the Flexpay alternative. Despite the increased usage of Flexpay, the Company did not experience deterioration in the aging of Flexpay receivables.

Net cash used in investing activities attributable to continuing operations in 2014 was $47.6 million. Capital expenditures in 2014 were $47.3 million and were primarily for investments in facilities, including distribution centers, and information and digital technology.

Net cash used in financing activities attributable to continuing operations in 2014 was $127.5 million. During 2014, HSNi repurchased 1.0 million shares of common stock for $55.5 million at an average cost of $54.87. HSNi also paid dividends totaling $1.10 per common share resulting in $57.8 million in payments during 2014. Repayments of $12.5 million of HSNi's term loan were made in 2014. HSNi had a cash inflow of $2.6 million from the proceeds from stock option exercises and a cash outflow of $12.7 million to cover withholding taxes for stock-based awards. Additionally, in 2014 HSNi had $8.4 million of excess tax benefits from stock-based awards.

On January 27, 2015, HSNi entered into a $1.25 billion five-year syndicated credit agreement ("new Credit Agreement") which is secured by 100% of the voting equity securities of HSNi's U.S. subsidiaries and 65% of HSNi's first-tier foreign subsidiaries. The new Credit Agreement replaced the existing $600 million credit agreement that was set to expire in April 2017. Certain HSNi subsidiaries have unconditionally guaranteed HSNi's obligations under the new Credit Agreement. The new Credit Agreement, which includes a $750 million revolving credit facility and a $500 million term loan, may be increased up to $1.75 billion subject to certain conditions and expires January 27, 2020. HSNi drew $200 million from its term loan under the new Credit Agreement on January 27, 2015 to repay its existing term loan of $228.1 million and drew the

26

remaining $300 million from its term loan and $200 million under the revolving credit facility, both under the new Credit Agreement, on February 18, 2015 to fund a $524 million special cash dividend that was paid on February 19, 2015, as discussed below.

In connection with the termination of the prior credit agreement, of the unamortized deferred financing costs of $2.4 million, $0.5 million will be written off in the first quarter of 2015. The balance of $1.9 million will be amortized to interest expense over the five-year term of the new Credit Agreement in addition to the $6.6 million in capitalized financing costs related to the new Credit Agreement.

The new Credit Agreement includes various covenants, limitations and events of default customary for similar facilities including a maximum leverage ratio of 3.50x and a minimum interest coverage ratio of 3.00x. Loans under the new Credit Agreement bear interest at a per annum rate equal to a LIBOR rate plus a predetermined margin that ranges from 1.50% to 2.25% or the Base Rate (as defined in the Credit Agreement) plus a predetermined margin that ranges from 0.50% to 1.25%. HSNi can elect to borrow at either a LIBOR rate or the Base Rate and the predetermined margin is based on HSNi's leverage ratio. HSNi pays a commitment fee ranging from 0.20% to 0.40% (based on the leverage ratio) on the unused portion of the revolving credit facility.

The amount available under the credit agreements is reduced by the amount of commercial and standby letters of credit issued under the revolving credit facility, which totaled $10.6 million as of December 31, 2014. The ability to draw funds under the revolving credit facility is dependent upon meeting the aforementioned financial covenants, which may limit HSNi’s ability to draw the full amount of the facility. As of December 31, 2014, the additional amount that could be borrowed under the revolving credit facility under the prior credit agreement, in consideration of the financial covenants and outstanding letters of credit, was approximately $339.4 million.

To reduce our exposure to rising interest rates, we entered into a forward-starting swap in December 2012 that effectively converts $187.5 million of our variable rate term loan to a fixed-rate of 0.8525%, resulting in an all-in fixed rate of 2.3525% (based on HSNi's leverage ratio as of December 31, 2014), through April 2017. For additional information related to our interest rate swaps, refer to Note 8 of Notes to Consolidated Financial Statements.

HSNi anticipates it will need to make capital and other expenditures in connection with the development and expansion of its operations. Our capital expenditures for fiscal 2015 are planned at approximately $65 million to $75 million and primarily relate to our investments in our distribution centers, including our warehouse automation project; information technology; and digital commerce. HSNi’s ability to fund its cash and capital needs will be affected by its ongoing ability to generate cash from operations, the overall capacity and terms of its financing arrangements as discussed above, and access to the capital markets. HSNi believes that its cash on hand, its anticipated operating cash flows, its available unused portion of the revolving credit facility and its access to capital markets will be sufficient to fund its operating needs, capital, investing and other commitments and contingencies for the foreseeable future.

On September 27, 2011, HSNi’s Board of Directors approved a share repurchase program which allowed HSNi to purchase 10 million shares of its common stock. For the year ended December 31, 2014, HSNi repurchased approximately 1.0 million shares at a cost of $55.5 million at an average cost of $54.87 per share. In July 2014, HSNi completed its 10 million share repurchase program at an aggregate cost of $451.0 million, representing an average cost of $45.10 per share.

Effective January 27, 2015, HSNi's Board of Directors authorized a new 4 million share repurchase program which allows HSNi to purchase shares of its common stock from time to time through privately negotiated and/or open market transactions. The timing of any 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. .

In February 2015, HSNi's Board of Directors approved a cash dividend of $0.35 per common share. The dividend will be paid on March 25, 2014 to HSNi's record holders as of March 19, 2014. Additionally, in January 2015, HSNi's Board of Directors approved a special cash dividend of $10.00 per share, representing $524 million in the aggregate, that was paid February 19, 2015 to shareholders of record as of February 9, 2015.

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Contractual Obligations and Commercial Commitments

The following table presents HSNi’s contractual obligations and commercial commitments as of December 31, 2014:

	Payments Due by Period
Contractual Obligations	Total Amounts Committed		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5  Years
	(In thousands)
Long-term debt, including current maturities (a)	$	228,126	$	17,188	$	210,938	$	—	$	—
Interest on debt (a)(b)	11,236		5,068		6,168		—		—
Operating leases	103,679		26,690		43,621		28,518		4,850
Purchase obligations (b)	101,848		78,964		15,074		7,810		—
Total contractual obligations	$	444,889	$	127,910	$	275,801	$	36,328	$	4,850

(a) Long-term debt and related interest are based on HSNi's debt that was outstanding as of December 31, 2014 under its $600 million credit agreement that was refinanced in January 2015.

(b) Includes interest on variable rate debt estimated using the rate in effect as of December 31, 2014, net of the impact of the interest rate swap. An all-in fixed rate of 2.3525% based on HSNi's leverage ratio as of December 31, 2014 is assumed through April 2017, the date of expiration of the variable rate debt.

(c) The purchase obligations primarily relate to contracts with pay television operators and include obligations for future cable distribution and commission guarantees.

	Amount of Commitments Expiration Per Period
Commercial Commitments	Total Amounts Committed		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
	(In thousands)
Letters of credit and surety bonds (c)	$	14,253	$	14,193	$	60	$	—	$	—

(c) The letters of credit (“LOCs”) primarily consist of trade LOCs which are used for inventory purchases. Trade LOCs are guarantees of payment based upon the delivery of goods. The surety bonds primarily consist of custom bonds which relate to the import of merchandise into the United States.

We issue inventory purchase orders in the normal course of business, which represent authorizations to purchase that are cancelable by their terms. We do not consider purchase orders to be firm inventory commitments; therefore, they are excluded from the table above. If we choose to cancel a purchase order, we may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation.

At December 31, 2014, we had $2.4 million, including penalties and interest, recorded for uncertain tax positions. We are not able to reasonably estimate the timing of payments in future periods; therefore, the liability of $2.4 million has not been included in the contractual obligations table above.

Off-Balance Sheet Arrangements

Other than the items described above, HSNi does not have any material off-balance sheet arrangements as of December 31, 2014.

Seasonality

HSNi is affected by seasonality, although historically our business has exhibited less seasonality than many other retail businesses. Our sales levels are generally higher in the fourth quarter. Reported revenues in the fourth quarter were 31% of total reported annual revenues in 2014 and 30% in 2013 and 2012.

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Non-GAAP Measure

HSNi reports Adjusted EBITDA as a supplemental measure to generally accepted accounting principles ("GAAP"). This measure is one of the primary metrics by which HSNi evaluates the performance of its businesses, on which its internal budgets are based and by which management is compensated. HSNi believes that investors should have access to the same information that it uses in analyzing its results.

Adjusted EBITDA is defined as operating income excluding, if applicable: (1) non-cash charges including: (a) stock-based compensation expense, (b) amortization of intangibles, (c) depreciation and gains and losses on asset dispositions, and (d) goodwill, long-lived asset and intangible asset impairments; (2) pro forma adjustments for significant acquisitions; and (3) other significant items. Significant items, while periodically affecting our results, may vary significantly from period to period and have a disproportionate effect in a given period, thereby affecting the comparability of results. Adjusted EBITDA is not a measure determined in accordance with GAAP, and should not be considered in isolation or as a substitute for operating income, net income or any other measure determined in accordance with GAAP. Adjusted EBITDA is used as a measurement of operating efficiency and overall financial performance and HSNi believes it to be a helpful measure for those evaluating companies in the retail and media industries. Adjusted EBITDA has certain limitations in that it does not take into account the impact to HSNi's consolidated statements of operations of certain expenses, including stock-based compensation, amortization of intangibles, depreciation, gains and losses on asset dispositions, asset impairment charges, acquisition-related accounting and other significant items.

Items That Are Excluded From HSNi's Non-GAAP Measure

Stock-based compensation expense consists principally of expense associated with the grants of restricted stock, restricted stock units, stock options and stock appreciation rights. These expenses are not paid in cash, and HSNi includes the related shares in its calculations of diluted shares outstanding. Upon vesting of restricted stock and restricted stock units and the exercise of certain stock options and stock appreciation rights, the awards can be settled, at HSNi's discretion, on a net basis, with HSNi remitting the required tax withholding amount from its current funds.

Amortization of intangibles is a non-cash expense relating primarily to acquisitions. At the time of an acquisition, the intangible assets of the acquired company, such as distribution agreements, customer relationships and merchandise agreements, are valued and amortized over their estimated lives.

Depreciation, gains and losses on asset dispositions and long-lived asset impairment charges are non-cash items relating to our long-lived assets and have been excluded from Adjusted EBITDA.

Goodwill and intangible asset impairment charges are also non-cash expenses that have been excluded from Adjusted EBITDA.

Other Significant Items represent transactions that may vary significantly from period to period and have a disproportionate effect in a given period, thereby affecting the comparability of results.

Reconciliation of Adjusted EBITDA

See Note 6 of Notes to Consolidated Financial Statements for the reconciliation between Adjusted EBITDA and net income for the years ended December 31, 2014, 2013 and 2012.

Critical Accounting Policies and Estimates

The following disclosure is provided to supplement the descriptions of HSNi's accounting policies contained in Note 2 of Notes to Consolidated Financial Statements in regard to significant areas of judgment. HSNi's management is required to make certain estimates and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net income during any period. Actual results could differ from those estimates. Because of the size of the financial statement elements to which they relate, some of HSNi's accounting policies and estimates have a more significant impact on its consolidated financial statements than others. The following is a discussion of some of HSNi's more significant accounting policies and estimates.

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Recoverability of Long-Lived Assets

HSNi reviews the carrying value of all long-lived assets, primarily property and equipment and definite-lived intangible assets, for impairment whenever triggering events or changes in circumstances indicate that the carrying value of an asset may be impaired. Impairment is considered to have occurred whenever the carrying value of a long-lived asset exceeds the sum of the undiscounted cash flows that is expected to result from the use and eventual disposition of the asset. The impairment is measured by comparing the fair value of the asset to its carrying value. Our valuation methodologies include, but are not limited to, discounting the future cash flows from the asset being tested. Significant judgments include determining if a triggering event has occurred, determining the future cash flows from the assets and applying the appropriate discount rate when measuring the fair value. The determination of cash flows is based upon assumptions that may not occur.

Impairment of Goodwill and Indefinite-Lived Intangible Assets

HSNi assesses the impairment of goodwill and identifiable indefinite-lived intangible assets, principally trademarks and trade names, at least annually during the fourth quarter and whenever events or changes in circumstances indicate that the carrying value of an asset may be impaired. In performing this review, HSNi has the option of performing a qualitative assessment to determine whether it is more likely than not that the fair values of the reporting unit and/or indefinite-lived intangible assets are less than the carrying values. In performing the qualitative assessment, HSNi considers various factors including (but not limited to): macroeconomic, industry and market conditions; cost factors affecting the business; the overall financial performance of the business; any relevant changes in management, strategies or customers; and any sustained decreases in its stock price. If HSNi determines based on this assessment that it is not more likely that the fair value is less than its carrying value, then the goodwill and/or the indefinite-lived intangible assets are deemed to be not impaired and no further testing is required until the next annual test date (or sooner if conditions or events before that date raise concerns of potential impairment in the business). If HSNi determines that it is more likely than not that the fair value is less than its carrying value, then the quantitative goodwill and/or indefinite-lived intangible asset impairment tests must be completed.

If necessary, HSNi performs a quantitative assessment of the fair values of its goodwill and intangible assets. In performing this review, HSNi is required to make an assessment of the fair value of its intangible assets. If it is determined that the implied fair value of goodwill and/or indefinite-lived intangible assets is less than the carrying amount, an impairment charge, equal to the excess, is recorded. HSNi determines the fair value of its reporting units by using a discounted cash flow analysis with consideration of an equity analysis based on the trading value of its common stock. HSNi utilizes the relief from royalty method to assess fair values of its trademarks and trade names.

In assessing fair value, HSNi considers, among other indicators, differences between estimated and actual cash flows and revenue streams and changes in the related discount, royalty and terminal growth rates. Determining these rates requires the exercise of significant judgments. These factors used in the determination of fair value are sensitive to, among other things, changes in the retail consumer market and the general economy.

Returns Reserves

Net sales from HSNi primarily consist of merchandise sales and are reduced by incentive discounts and sales returns. HSNi's sales policy allows customers to return virtually all merchandise for a full refund or exchange, subject to pre-established time restrictions. Allowances for returned merchandise and other adjustments (including reimbursed shipping and handling costs) are provided based upon past experience. Actual levels of product returns may vary from these estimates. HSNi's estimated return rates were 16.3%, 17.0% and 17.8% in 2014, 2013 and 2012, respectively.

Allowance for Doubtful Accounts

HSNi makes judgments as to its ability to collect outstanding receivables and provide allowances when it has determined that all or a portion of the receivable will not be collected. HSNi determines its allowance by considering a number of factors, including the length of time accounts receivable are past due, its previous loss history and the condition of the general economy. HSNi writes off accounts receivable when they are determined to be uncollectible.

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Income Taxes

Estimates of deferred income taxes and the significant items giving rise to the deferred tax assets and liabilities are shown in Note 12 of Notes to Consolidated Financial Statements, and reflect management's assessment of actual future taxes to be paid on items reflected in the consolidated financial statements, giving consideration to both timing and the probability of realization. Actual income taxes could vary from these estimates due to future changes in income tax law, state income tax apportionment, as well as actual operating results of HSNi that vary significantly from anticipated results. Valuation allowances are related to items for which it is more likely than not that the tax benefit will not be realized. In assessing the adequacy of a recorded valuation allowance, we consider all positive and negative information and a variety of factors including the scheduled reversal of deferred tax liabilities, historical and projected future taxable income and feasible tax planning strategies. HSNi recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on its technical merits. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. This measurement step is inherently difficult and requires subjective estimations of such amounts to determine the probability of various possible outcomes. HSNi considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes.

Inventory Valuation

Inventories are valued at the lower of cost or market, cost being determined based upon the first-in, first-out method. Market is determined on the basis of net realizable value, giving consideration to obsolescence and other factors. Net realizable value is estimated by HSNi based upon historical sales data, the age of inventory, the quantity of goods on hand and the ability to return merchandise to vendors. The actual net realizable value may vary from estimates due to changes in customer tastes or viewing habits, or judgmental decisions made by merchandising personnel when ordering new products.

Stock-Based Compensation

We measure compensation cost for stock-based awards at fair value and recognize compensation over the service period for awards expected to vest. We consider many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. HSNi grants performance-based equity awards whose value is based on the extent to which certain pre-established performance goals are achieved during a three-year period. Each reporting period prior to the vesting of these awards, management must apply significant judgment when estimating the expected future achievement of the designated performance metrics. The estimation of stock awards that will ultimately vest and the estimation of the value of the performance-based awards require judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The fair value of restricted stock units is determined based on the number of shares granted and the closing price of our common stock at the grant date. The fair value of stock options, stock appreciation rights and options granted under our employee stock purchase plan are estimated on the grant date using the Black-Scholes option pricing model. This model incorporates various assumptions, including expected volatility and expected term. Expected stock price volatilities are estimated based on HSNi's historical experience and the historical and implied volatilities of comparable publicly-traded companies. The expected term of awards granted is based on analyses of historical employee termination rates and option exercise patterns, giving consideration to expectations of future employee behavior. Actual results and future estimates may differ substantially from our current estimates.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

At December 31, 2014 and 2013, HSNi’s outstanding long-term debt was $228.1 million and $240.6 million, respectively, all of which pays interest at a variable rate, generally tied to LIBOR. Changes in interest rates on our variable rate debt could affect our earnings. We are managing our future interest rate exposure through an interest rate swap with a notional amount of $187.5 million and a fixed rate of 0.8525% that took effect January 2014. A hypothetical 100 basis point increase in interest rates on the portion of our variable rate debt that was outstanding as of December 31, 2014 and that was not effectively hedged by the fixed-rate interest rate swap would increase our annual interest expense by approximately $0.4 million in 2015.

On January 27, 2015, HSNi replaced its $600 million credit agreement with a new $1.25 billion five-year Credit Agreement, which includes a $750 million revolving credit facility and a $500 million term loan, all of which pays interest at a variable rate, generally tied to LIBOR. We will manage our interest rate risk through the existing interest rate swap with a notional amount of $187.5 million and a fixed rate of 0.8525% but will continue to evaluate our interest rate exposure.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Consolidated Financial Statements

	Page
Report of Independent Registered Certified Public Accounting Firm	33
Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012	34
Consolidated Statements of Comprehensive Income for the years ended December 31, 2014, 2013 and 2012	35
Consolidated Balance Sheets at December 31, 2014 and 2013	36
Consolidated Statements of Shareholders' Equity for the years ended December 31, 2014, 2013 and 2012	37
Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012	38
Notes to Consolidated Financial Statements	39
Schedule II – Valuation and Qualifying Accounts	66

32

Report of Independent Registered Certified Public Accounting Firm

The Board of Directors and Shareholders of HSN, Inc.

We have audited the accompanying consolidated balance sheets of HSN, Inc. and subsidiaries as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2014. Our audits also included the financial statement schedule listed in the Index as Schedule II. These financial statements and financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and the financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of HSN, Inc. and subsidiaries at December 31, 2014 and 2013, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2014, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), HSN, Inc. and subsidiaries’ internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 26, 2015, expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Tampa, Florida

February 26, 2015

33

HSN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Years Ended December 31,
	2014			2013			2012
Net sales	$	3,587,995		$	3,403,983		$	3,266,739
Cost of sales	2,314,933			2,174,168			2,083,015
Gross profit	1,273,062			1,229,815			1,183,724
Operating expenses:
Selling and marketing	723,407			695,794			662,322
General and administrative	221,112			210,778			224,653
Depreciation and amortization	43,934			40,589			38,005
Total operating expenses	988,453			947,161			924,980
Operating income	284,609			282,654			258,744
Other income (expense):
Interest income	184			205			564
Interest expense	(7,266		)	(6,718		)	(20,811		)
Loss on debt extinguishment	—			—			(18,627		)
Total other expense, net	(7,082		)	(6,513		)	(38,874		)
Income from continuing operations before income taxes	277,527			276,141			219,870
Income tax provision	(104,543		)	(97,692		)	(83,373		)
Income from continuing operations	172,984			178,449			136,497
Loss from discontinued operations, net of tax	—			—			(5,822		)
Net income	$	172,984		$	178,449		$	130,675
Income from continuing operations per share:
Basic	$	3.28		$	3.33		$	2.42
Diluted	$	3.23		$	3.25		$	2.36
Net income per share:
Basic	$	3.28		$	3.33		$	2.32
Diluted	$	3.23		$	3.25		$	2.25
Shares used in computing earnings per share:
Basic	52,736			53,640			56,314
Diluted	53,633			54,857			57,956
Dividends declared per common share	$	1.10		$	0.79		$	0.555

The accompanying notes are an integral part of these consolidated financial statements.

34

HSN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

	Years Ended December 31,
	2014			2013		2012
Net income	$	172,984		$	178,449	$	130,675
Other comprehensive (loss) income, net of tax:
Change in fair value of derivative instrument	(227		)	825		(471		)
Other comprehensive (loss) income, net of tax	(227		)	825		(471		)
Comprehensive income	$	172,757		$	179,274	$	130,204

The accompanying notes are an integral part of these consolidated financial statements.

35

HSN, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	December 31,
	2014			2013
ASSETS
Current assets:
Cash and cash equivalents	$	159,985		$	196,433
Accounts receivable, net of allowance of $18,824 and $16,863, respectively	317,785			265,115
Inventories	398,705			327,319
Deferred income taxes	32,668			29,761
Prepaid expenses and other current assets	44,728			48,630
Total current assets	953,871			867,258
Property and equipment, net	193,889			178,720
Intangible assets, net	261,962			262,460
Goodwill	9,858			9,858
Other non-current assets	12,614			19,627
TOTAL ASSETS	$	1,432,194		$	1,337,923
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable, trade	$	255,287		$	255,627
Current maturities of long-term debt	17,188			12,500
Accrued expenses and other current liabilities	241,074			207,984
Total current liabilities	513,549			476,111
Long-term debt, less current maturities	210,938			228,125
Deferred income taxes	88,787			88,034
Other long-term liabilities	16,579			16,572
Total liabilities	829,853			808,842
Commitments and contingencies (Note 13)
SHAREHOLDERS’ EQUITY:
Preferred stock $0.01 par value; 25,000,000 authorized shares; no issued shares	—			—
Common stock $0.01 par value; 300,000,000 authorized shares; 52,425,895 and 53,002,368 issued shares as of December 31, 2014 and 2013, respectively	524			530
Additional paid-in capital	1,710,581			1,810,072
Accumulated deficit	(1,108,891		)	(1,281,875		)
Accumulated other comprehensive income	127			354
Total shareholders’ equity	602,341			529,081
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,432,194		$	1,337,923

The accompanying notes are an integral part of these consolidated financial statements.

36

HSN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands)

	Preferred Stock			Common Stock					Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive (Loss) Income			Total
	Shares	Amount		Shares		Amount
Balance as of December 31, 2011	—	$	—	58,414		$	584		$	2,180,112		$	(1,590,999	)	$	—		$	589,697
Net income	—	—		—		—			—			130,675			—			130,675
Other comprehensive loss	—	—		—		—			—			—			(471		)	(471		)
Stock-based compensation expense for equity awards	—	—		—		—			14,440			—			—			14,440
Cash dividend declared on common stock	—	—		—		—			(31,049		)	—			—			(31,049		)
Issuance of common stock from stock-based compensation awards, including tax benefit of $18,900	—	—		1,901		19			21,797			—			—			21,816
Repurchases of common stock	—	—		(5,461	)	(54		)	(220,540		)	—			—			(220,594		)
Balance as of December 31, 2012	—	—		54,854		549			1,964,760			(1,460,324		)	(471		)	504,514
Net income	—	—		—		—			—			178,449			—			178,449
Other comprehensive income	—	—		—		—			—			—			825			825
Stock-based compensation expense for equity awards	—	—		—		—			14,043			—			—			14,043
Cash dividend declared on common stock	—	—		—		—			(42,281		)	—			—			(42,281		)
Issuance of common stock from stock-based compensation awards, including tax benefit of $9,788	—	—		885		9			20,416			—			—			20,425
Repurchases of common stock	—	—		(2,737	)	(28		)	(146,866		)	—			—			(146,894		)
Balance as of December 31, 2013	—	—		53,002		530			1,810,072			(1,281,875		)	354			529,081
Net income	—	—		—		—			—			172,984			—			172,984
Other comprehensive loss	—	—		—		—			—			—			(227		)	(227		)
Stock-based compensation expense for equity awards	—	—		—		—			15,606			—			—			15,606
Cash dividend declared on common stock	—	—		—		—			(57,824		)	—			—			(57,824		)
Issuance of common stock from stock-based compensation awards, including tax benefit of $8,293	—	—		435		4			(1,816		)	—			—			(1,812		)
Repurchases of common stock	—	—		(1,011	)	(10		)	(55,457		)	—			—			(55,467		)
Balance as of December 31, 2014	—	$	—	52,426		$	524		$	1,710,581		$	(1,108,891	)	$	127		$	602,341

The accompanying notes are an integral part of these consolidated financial statements.

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HSN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Years Ended December 31,
	2014			2013			2012
Cash flows from operating activities attributable to continuing operations:
Net income	$	172,984		$	178,449		$	130,675
Loss from discontinued operations, net of tax	—			—			(5,822		)
Income from continuing operations	172,984			178,449			136,497
Adjustments to reconcile income from continuing operations to net cash provided by operating activities attributable to continuing operations:
Depreciation and amortization	43,934			40,589			38,005
Stock-based compensation expense	15,606			14,043			19,056
Loss on debt extinguishment	—			—			18,627
Amortization of debt issuance costs	1,107			1,130			1,777
Deferred income taxes	(2,045		)	6,370			(2,146		)
Bad debt expense	23,986			22,773			24,186
Excess tax benefits from stock-based awards	(8,397		)	(10,360		)	(19,004		)
Fair value adjustment to contingent consideration obligation	—			(3,600		)	—
Asset impairment	—			3,040			—
Other	48			1,140			764
Changes in assets and liabilities:
Accounts receivable	(76,654		)	(38,211		)	(51,995		)
Inventories	(71,386		)	3,617			(36,117		)
Prepaid expenses and other assets	2,243			(6,318		)	(3,724		)
Accounts payable, accrued expenses and other current liabilities	37,285			19,245			21,487
Net cash provided by operating activities attributable to continuing operations	138,711			231,907			147,413
Cash flows from investing activities attributable to continuing operations:
Capital expenditures	(47,316		)	(51,952		)	(45,803		)
Acquisition of business, net of cash received	—			—			(22,875		)
Advance payment of capital expenditure	—			(9,100		)	—
Proceeds from sale of discontinued operations	—			—			6,580
Other	(320		)	—			—
Net cash used in investing activities attributable to continuing operations	(47,636		)	(61,052		)	(62,098		)
Cash flows from financing activities attributable to continuing operations:
Redemption of Senior Notes	—			—			(253,500		)
Borrowing under term loan	—			—			250,000
Repayments of long-term debt	(12,500		)	(9,375		)	—
Payments of debt issuance costs	—			—			(4,607		)
Repurchase of common stock	(55,467		)	(146,894		)	(221,835		)
Cash dividends paid	(57,824		)	(42,281		)	(31,049		)
Proceeds from issuance of common stock	2,599			8,396			20,688
Tax withholdings related to stock-based awards	(12,707		)	(14,395		)	(18,209		)
Excess tax benefits from stock-based awards	8,397			10,360			19,004
Payment of contingent consideration obligation	—			(2,172		)	—
Net cash used in financing activities attributable to continuing operations	(127,502		)	(196,361		)	(239,508		)
Total cash used in continuing operations	(36,427		)	(25,506		)	(154,193		)
Cash flows from discontinued operations:
Net cash used in operating activities attributable to discontinued operations	(21		)	(153		)	(5,523		)
Total cash used in discontinued operations	(21		)	(153		)	(5,523		)
Net decrease in cash and cash equivalents	(36,448		)	(25,659		)	(159,716		)
Cash and cash equivalents at beginning of period	196,433			222,092			381,808
Cash and cash equivalents at end of period	$	159,985		$	196,433		$	222,092

The accompanying notes are an integral part of these consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION

Company Overview

HSN, Inc. (“HSNi”) is an interactive multi-channel retailer that markets and sells a wide range of third party and proprietary merchandise directly to consumers through various platforms including (i) television home shopping programming broadcast on the HSN television networks; (ii) catalogs, consisting primarily of the Cornerstone portfolio of leading print catalogs which includes, Ballard Designs, Chasing Fireflies, Frontgate, Garnet Hill, Grandin Road, Improvements and TravelSmith; (iii) websites, which consist primarily of HSN.com and the seven branded websites operated by Cornerstone; (iv) mobile devices; and (v) retail and outlet stores. HSNi’s television home shopping business, related digital sales and outlet stores are referred to herein as “HSN” and all catalog operations, including related digital sales and stores, are collectively referred to herein as “Cornerstone.”

HSN offerings primarily consist of jewelry, fashion (apparel & accessories), beauty & health, and home & other (including household, home design, electronics and culinary). Merchandise offered by Cornerstone primarily consists of home furnishings (including indoor/outdoor furniture, home décor, tabletop, textiles and other home related goods) and apparel & accessories.

Basis of Presentation

HSNi was incorporated in Delaware in May 2008 in connection with the spin-off of several businesses previously owned by IAC/InterActiveCorp ("IAC"). The spin-off from IAC occurred August 20, 2008 concurrent with the spin-offs from IAC of Interval Leisure Group, Inc., Ticketmaster Entertainment, Inc. (now a wholly-owned subsidiary of Live Nation Entertainment, Inc.), and Tree.com, Inc. Throughout these financial statements, the separation transaction is referred to as the “Spin-off” and each of these companies as “Spincos.” In connection with the Spin-off, HSNi's shares began trading on the NASDAQ Global Select Market under the symbol “HSNI.”

The consolidated financial statements include the accounts of HSN, Inc. and its subsidiaries. Intercompany accounts and transactions have been eliminated. The operating results of Smith+Noble and The Territory Ahead are presented as discontinued operations in the consolidated statements of operations and the consolidated statements of cash flows for all periods presented. See Note 17 for further discussion of discontinued operations.

Recent Accounting Developments

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). It outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that revenue is recognized when a customer obtains control of a good or service. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. ASU 2014-09 is effective for annual periods beginning after December 15, 2016, including interim periods within that annual period. HSNi is in the process of assessing the impact of the adoption of ASU 2014-09 to its consolidated financial statements.

Fiscal Year

HSNi’s consolidated financial results are reported on a calendar year basis ending on December 31. HSN’s reporting period is the same as HSNi. Cornerstone has a 4-4-5 week accounting cycle with the fiscal year ending on the Saturday on or immediately preceding December 31. Cornerstone’s fiscal years 2014, 2013, and 2012 each included 52 weeks. 

Reclassifications

Reclassifications were made to prior period amounts within the consolidated statements of cash flows to conform to the current year's presentation.

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NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue Recognition

Revenue primarily consists of merchandise sales and is reduced by incentive discounts and sales returns to arrive at net sales. Revenue is recorded when delivery to the customer has occurred. Delivery is considered to have occurred when the customer takes title and assumes the risks and rewards of ownership, which is on the date of shipment. HSNi's sales policy allows customers to return merchandise for a full refund or exchange, subject to pre-established time restrictions. Allowances for returned merchandise and other adjustments (including reimbursed shipping and handling costs) are provided based upon past experience. Actual returns of product sales have not materially varied from estimates in any of the periods presented. HSNi's estimated return rates were 16.3%, 17.0%, and 17.8% in 2014, 2013, and 2012, respectively. Sales taxes collected are not included in revenue.

HSN issues merchandise credits primarily for products returned outside of HSN’s normal return policy. Revenues from these credits are recognized when (1) redeemed by the customer, or (2) it is determined that it is not probable the Company has an obligation to escheat the value of the unredeemed credit to relevant jurisdictions and the likelihood of the credit being redeemed by the customer is remote (“breakage”). During the year ended December 31, 2014, the Company recognized $5.0 million of revenue for merchandise credit breakage. This was the first period during which the Company recognized merchandise credit breakage and, therefore, it included breakage income related to merchandise credits issued since inception of this program. Merchandise credit breakage is estimated based upon an analysis of actual historical redemption patterns and is included in "Net sales" in the accompanying consolidated statements of operations.

Shipping and Handling Fees and Costs

Shipping and handling fees billed to customers are recorded as revenue. The costs associated with shipping goods to customers are recorded as cost of sales.

Cash and Cash Equivalents

Cash and cash equivalents include cash and money market instruments with an original maturity of three months or less when purchased and are stated at cost.

Accounts Receivable

Accounts receivable are principally comprised of amounts due from customers and credit card companies, net of an allowance for doubtful accounts. HSN provides extended payment terms to its customers on certain products known as Flexpay. Revenue is recorded when delivery to the customer has occurred, at which time HSN collects the first payment, sales tax and all shipping and handling fees. Subsequent collections are due from customers in 30-day increments, payable automatically upon authorization of the customer’s method of payment. HSN accepts most credit and select debit cards. HSN offers Flexpay programs ranging from two to six interest-free monthly payments. Flexpay receivables consist of outstanding balances owed by customers, less a reserve for uncollectible balances.

The balance of accounts receivable, net of allowances, is as follows (in thousands):

	December 31,
	2014		2013
Flexpay and other customer-related	$	271,613	$	222,983
Credit card companies	17,865		21,447
Other	28,307		20,685
Accounts receivable, net	$	317,785	$	265,115

Accounts receivable outstanding longer than the contractual payment terms are considered past due. HSNi determines its allowance by considering a number of factors, including the length of time accounts receivable are past due, HSNi’s previous loss history and the condition of the general economy. HSNi writes off accounts receivable when they are deemed uncollectible.

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Inventories

Inventories, which primarily consist of finished goods, are valued at the lower of cost or market, with the cost being determined based upon the first-in, first-out method. Cost includes inbound freight and duties and, in the case of HSN, certain allocable costs, including certain warehouse costs. Inventories include approximately $6.0 million of these allocable general and administrative overhead costs at December 31, 2014 and 2013, and approximately $24.0 million, $23.9 million, and $24.3 million of such costs were included in the accompanying consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012, respectively. Market is determined on the basis of net realizable value, giving consideration to obsolescence and other factors.

Property and Equipment

Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance and any gains or losses on dispositions are included in the consolidated statement of operations.

Depreciation is recorded on a straight-line basis to allocate the cost of depreciable assets to operations over the shorter of the estimated service life or lease period.

Asset Category	Depreciation Period
Computer and broadcast equipment and capitalized software	3 to 6 Years
Buildings, leasehold improvements and land improvements	3 to 40 Years
Furniture and other equipment	2 to 10 Years

HSNi capitalizes certain qualified costs incurred in connection with the development of internal use software. Capitalization of internal use software costs begins when the preliminary project stage is completed; management with the relevant authority authorizes and commits to the funding of the software project; and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalized internal use software is amortized on a straight-line basis over the estimated useful life of the software, not to exceed five years. Capitalized software costs, net of accumulated amortization, totaled $37.9 million and $37.3 million at December 31, 2014 and 2013, respectively, and are included in “Property and equipment, net” in the accompanying consolidated balance sheets. Amortization expense related to the capitalized software costs was $18.3 million, $15.1 million and $12.7 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in "Depreciation and amortization" expense in the accompanying consolidated statements of operations.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill acquired in business combinations is assigned to the reporting units that are expected to benefit from the combination as of the acquisition date. Goodwill and indefinite-lived intangible assets, primarily trade names and trademarks, are assessed annually for impairment as of October 1 or upon the occurrence of certain events or substantive changes in circumstances. See Note 3 for a further discussion on goodwill and indefinite-lived intangible assets.

Long-Lived Assets and Intangible Assets with Definite Lives

Long-lived assets, including property and equipment and intangible assets with definite lives, are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is deemed to not be recoverable, an impairment loss is recorded as the amount by which the carrying amount of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is generally recorded on a straight-line or accelerated basis over their estimated lives.

Cable and Satellite Distribution Fees

Cable and satellite distribution fees relate to fees paid in connection with cable and satellite contracts for carriage of HSN’s programming. Fees that are paid upfront for annual contracts are included in "Prepaid expenses and other current assets" in the accompanying consolidated balance sheets and are amortized on a straight-line basis over the terms of the respective contracts. Unpaid fees are accrued and included in the line item “Accrued expenses and other current liabilities” in the accompanying consolidated balance sheets. Cable and satellite distribution fees and amortization are included in “Selling and marketing" expense in the accompanying consolidated statements of operations.

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Advertising

Advertising costs include catalog production and distribution costs. Advertising costs are expensed in the period incurred, except for Cornerstone’s direct costs of producing and distributing its catalogs, which are capitalized. These capitalized costs are amortized over the expected future revenue stream, which is generally three months from the date catalogs are mailed. Such capitalized costs totaled $18.0 million and $18.8 million as of December 31, 2014 and 2013, respectively, and are included in “Prepaid expenses and other current assets” in the accompanying consolidated balance sheets. Of these amounts, $9.6 million and $13.0 million as of December 31, 2014 and 2013, respectively, related to catalogs that had not yet been mailed. Advertising expense was $279.6 million, $268.0 million, and $245.0 million for the years ended December 31, 2014, 2013 and 2012, respectively, and were included in "Selling and marketing" expense in the accompanying consolidated statements of operations.

Income Taxes

HSNi accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the deferred tax asset will not be realized. HSNi records interest and penalties on potential tax contingencies as a component of income tax expense and records interest net of any applicable related income tax benefit.

HSNi recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on its technical merits. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement.

Stock-Based Compensation

HSNi recognizes compensation expense for stock-based awards, reduced for estimated forfeitures, on a straight-line basis over the requisite service period for awards with service conditions and on a graded-vested basis for awards with market or performance conditions. Tax benefits resulting from tax deductions in excess of the stock-based compensation expense recognized in the consolidated statements of cash flows are reported as a component of financing cash flows. HSNi issues new shares to satisfy equity vestings and exercises. See Note 11 for a further description of our stock compensation plans.

Earnings Per Share

HSNi computes basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the treasury stock method.

Derivative Instruments

HSNi uses derivatives in the management of interest rate risk with respect to interest expense on variable rate debt. Such instruments are not held or used for trading purposes. HSNi is party to an interest rate swap agreement which began in January 2014 with one major financial institution that fixes the variable benchmark component (LIBOR) of HSNi's interest rate on a portion of its variable-rate debt. See Note 8 for further discussion of derivative instruments.

Share Repurchases

Shares repurchased pursuant to HSNi's share repurchase program are immediately retired upon purchase. Repurchased common stock is reflected as a reduction of shareholders' 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 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.

Private Label Credit Card

HSN's credit card program offers eligible customers a private label credit card. All cardholders receive certain rewards and benefits which are designed to recognize and promote client loyalty. HSN designs, executes and administers marketing programs to promote usage of the card to current and potential customers. These marketing programs are funded largely by the sponsoring bank. HSN also saves on interchange fees that it would incur if its customers used third-party cards. Purchases

42

made through the private label credit card represented 31%, 28% and 27% of HSN's business in 2014, 2013 and 2012, respectively.

In November 2013, HSN extended its agreement with the sponsoring bank through 2020. As with the original agreement, HSN received an upfront signing bonus from the sponsoring bank which is being amortized over the term of the agreement and also receives ongoing payments for new accounts activated as well as a share of net sales collected by the sponsoring bank. For the years ended December 31, 2014, December 31, 2013 and December 31, 2012, HSN recognized approximately $16.5 million, $12.8 million, and $11.4 million, respectively, of income from the sponsoring bank that was used to offset credit card fees included in costs of goods sold.

Accounting Estimates

HSNi prepares its financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”). These principles require management to make certain estimates and assumptions during the preparation of its consolidated financial statements. These estimates and assumptions impact the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates.

Significant estimates underlying the accompanying consolidated financial statements include: the determination of the lower of cost or market adjustment for inventory; sales returns and other revenue allowances; the allowance for doubtful accounts; the recoverability of long-lived assets; the impairment of intangible assets; the annual expected effective tax rate; the determination of deferred income taxes, including related valuation allowances; the accrual for actual, pending or threatened litigation, claims and assessments; the breakage of merchandise credits; and assumptions related to the determination of stock-based compensation and contingent consideration related to acquisitions.

Certain Risks and Concentrations

HSNi’s business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security, consumer credit risk and credit card fraud. HSNi also depends on third-party service providers for processing certain fulfillment services.

NOTE 3—INTANGIBLE ASSETS AND GOODWILL

HSNi assesses the impairment of goodwill and indefinite-lived identifiable intangible assets, principally trademarks and trade names, at least annually during the fourth quarter and whenever events or circumstances indicate that the carrying value may not be fully recoverable. In performing this review, HSNi has the option of performing a qualitative assessment to determine whether it is more likely than not that the fair values of the reporting unit and/or indefinite-lived intangible assets are less than the carrying values. If HSNi determines that it is not more likely that the fair value is less than its carrying value, then the goodwill and/or the indefinite-lived intangible assets are deemed to be not impaired and no further testing is required until the next annual test date (or sooner if conditions or events before that date raise concerns of potential impairment in the business). If HSNi determines that it is more likely than not that the fair value is less than its carrying value, then the quantitative goodwill and/or indefinite-lived intangible asset impairment tests (as discussed below) must be completed.

If necessary, HSNi performs a quantitative assessment of the fair values of its goodwill and intangible assets. If it is determined that the implied fair value of goodwill and/or indefinite-lived intangible assets is less than the carrying amount, an impairment charge, equal to the excess, is recorded. The implied fair value of goodwill is determined in the same manner as in a business combination. The estimated fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the estimated fair value of the reporting unit was the purchase price paid. The fair value of the reporting unit is determined by using a discounted cash flow analysis with consideration of an equity analysis based on the trading value of its common stock. The discounted cash flow analysis indicates the fair value of the reporting units based on the present value of the cash flows expected to be generated in the future. The equity analysis is based on the trading value of its common stock as of the valuation date or the average stock price over a range of dates prior to the valuation date, plus an estimated control premium. HSNi utilizes a relief from royalty method to assess the fair values of its trademarks and trade names.

In assessing fair value, HSNi considers, among other indicators, differences between estimated and actual cash flows and revenue streams; changes in the related discount, royalty and terminal growth rate; and the relationship between the trading price of its common stock and its per-share book value. Determining fair value requires the exercise of significant judgments.

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These factors used in the determination of fair value are sensitive to, among other things, changes in the retail consumer market and the general economy.

Intangible Assets

Intangible assets with indefinite lives relate principally to trade names and trademarks. Definite-lived intangible assets consist primarily of customer relationships which are amortized on an accelerated basis over their useful lives. When definite-lived intangible assets are sold or expire, the cost of the asset and the related accumulated amortization are eliminated and any gain or loss is recognized at such time.

The total balance of HSNi's intangible assets, net, is as follows (in thousands):

	December 31,
	2014		2013
Intangible assets with indefinite lives	$	261,808	$	261,809
Intangible assets with definite lives, net	154		651
Total intangible assets, net	$	261,962	$	262,460

In the fourth quarter of 2014, HSNi performed quantitative assessments of its indefinite-lived intangible assets and concluded there were no impairments. In the fourth quarter of 2013, HSNi performed qualitative and quantitative assessments (as applicable) of its intangible assets and concluded an adjustment was necessary related to trademarks associated with the 2012 acquisition of Chasing Fireflies. An impairment charge of $3.0 million was recorded in the fourth quarter of 2013 within the Cornerstone segment and is included in "General and administrative" expense in the accompanying consolidated statements of operations.

Amortization expense for the definite-lived intangible assets was $0.6 million, $1.4 million, and $1.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. At December 31, 2014 and 2013, the following is information on intangible assets with definite lives (in thousands):

	Cost		Accumulated Amortization			Net		Weighted Average Amortization Life (Years)
As of December 31, 2014	$	3,859	$	(3,705	)	$	154	6.1
As of December 31, 2013	$	3,800	$	(3,149	)	$	651	1.1

Goodwill

In the second quarter of 2012, $9.9 million of goodwill was recorded in connection with the acquisition of Chasing Fireflies which was allocated to the Cornerstone reporting unit. No adjustments have been made to the goodwill balance subsequent to the acquisition. Based on the quantitative assessment performed in the fourth quarter of 2014 and the qualitative assessment performed in the fourth quarter of 2013, HSNi concluded there was no impairment of its goodwill.

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The following tables present the balance of goodwill by reporting unit, including changes in the carrying amount of goodwill, for the years ended December 31, 2014 and 2013 (in thousands):

	Gross Balance as of January 1, 2014		Accumulated Impairment			Net Balance as of January 1, 2014		Additions		Impairment		Net Balance as of December 31, 2014
HSN	$	2,391,594	$	(2,391,594	)	$	—	$	—	$	—	$	—
Cornerstone	502,464		(492,606		)	9,858		—		—		9,858
Total	$	2,894,058	$	(2,884,200	)	$	9,858	$	—	$	—	$	9,858
	Gross Balance as of January 1, 2013		Accumulated Impairment			Net Balance as of January 1, 2013		Additions		Impairment		Net Balance as of December 31, 2013
HSN	$	2,391,594	$	(2,391,594	)	$	—	$	—	$	—	$	—
Cornerstone	502,464		(492,606		)	9,858		—		—		9,858
Total	$	2,894,058	$	(2,884,200	)	$	9,858	$	—	$	—	$	9,858

NOTE 4—PROPERTY AND EQUIPMENT

The balance of property and equipment, net, is as follows (in thousands):

	December 31,
	2014			2013
Capitalized software	$	223,436		$	215,893
Computer and broadcast equipment	89,739			85,521
Buildings and leasehold improvements	105,086			102,437
Furniture and other equipment	88,174			83,779
Projects in progress	30,794			12,528
Land and land improvements	10,541			10,460
	547,770			510,618
Less: accumulated depreciation and amortization	(353,881		)	(331,898		)
Total property and equipment, net	$	193,889		$	178,720

Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. There were no impairment charges related to HSNi's long-lived assets in fiscal 2014 or 2013. As we periodically reassess estimated future cash flows and asset fair values, changes in our estimates and assumptions may cause us to realize impairment charges in the future.

NOTE 5—ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following (in thousands):

	December 31,
	2014		2013
Accrued sales returns	$	40,789	$	40,072
Accrued cable and satellite distribution fees	41,375		30,452
Accrued freight and fulfillment expenses	35,225		32,646
Accrued compensation and benefits	40,327		36,567
Other accrued expenses and current liabilities	83,358		68,247
Total accrued expenses and other current liabilities	$	241,074	$	207,984

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NOTE 6—SEGMENT INFORMATION

HSNi presents its operating segments and related financial information in a manner consistent with how the chief operating decision maker and executive management view the businesses, how the businesses are organized as to segment management, and the focus of the businesses with regards to the types of products or services offered or the target market. HSNi has two operating segments, HSN and Cornerstone. The accounting policies of the segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. Intercompany accounts and transactions have been eliminated in consolidation.

HSNi’s primary performance metric is Adjusted EBITDA, which is defined as operating income excluding, if applicable: (1) non-cash charges including: (a) stock-based compensation expense, (b) amortization of intangibles, (c) depreciation and gains and losses on asset dispositions, and (d) goodwill, long-lived asset and intangible asset impairments; (2) pro forma adjustments for significant acquisitions; and (3) other significant items. Significant items, while periodically affecting our results, may vary significantly from period to period and have a disproportionate effect in a given period, thereby affecting the comparability of results. Adjusted EBITDA is not a measure determined in accordance with GAAP, and should not be considered in isolation or as a substitute for operating income, net income or any other measure determined in accordance with GAAP. Adjusted EBITDA is used as a measurement of operating efficiency and overall financial performance and HSNi believes it to be a helpful measure for those evaluating companies in the retail and media industries. Adjusted EBITDA has certain limitations in that it does not take into account the impact to HSNi’s consolidated statements of operations of certain expenses, gains and losses; including stock-based compensation, amortization of intangibles, depreciation, gains and losses on asset dispositions, asset impairment charges, acquisition-related accounting expenses and other significant items.

The following tables reconcile Adjusted EBITDA to operating income for HSNi’s operating segments and to HSNi’s consolidated net income (in thousands):

	Year Ended December 31, 2014
	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 from merchandise credits (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							(7,082		)
Income from continuing operations before income taxes							277,527
Income tax provision							(104,543		)
Net income							$	172,984

(a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

(b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

	Year Ended December 31, 2013
	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.

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	Year Ended December 31, 2012
	HSN			Cornerstone			Total
Adjusted EBITDA	$	250,836		$	73,441		$	324,277
Stock-based compensation expense	(11,167		)	(7,889		)	(19,056		)
Depreciation and amortization	(26,486		)	(11,519		)	(38,005		)
Sales tax settlement	—			(7,750		)	(7,750		)
Loss on disposition of fixed assets	(680		)	(42		)	(722		)
Operating income	$	212,503		$	46,241		258,744
Total other expense, net							(38,874		)
Income from continuing operations before income taxes							219,870
Income tax provision							(83,373		)
Income from continuing operations							136,497
Loss from discontinued operations, net of tax							(5,822		)
Net income							$	130,675

(a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

Financial information by segment is as follows (thousands):

	Year Ended December 31,
	2014		2013		2012
Net sales:
HSN	$	2,476,088	$	2,312,382	$	2,265,026
Cornerstone	1,111,907		1,091,601		1,001,713
Total	$	3,587,995	$	3,403,983	$	3,266,739
Identifiable assets:
HSN	$	1,134,685	$	1,058,573	$	1,083,714
Cornerstone	297,509		279,350		248,238
Total	1,432,194		1,337,923		1,331,952
Capital expenditures:
HSN	$	32,307	$	36,156	$	33,566
Cornerstone	15,009		15,796		12,237
Total	$	47,316	$	51,952	$	45,803

HSNi does not report revenue from external customers for each product or each group of similar products as it is impracticable to do so. HSNi maintains operations principally in the United States with no long-lived assets and insignificant net sales in all other countries.

NOTE 7—LONG-TERM DEBT

	December 31,
	2014			2013
Secured credit agreement expiring April 24, 2017:
Term loan	$	228,126		$	240,625
Revolving credit facility	—			—
Total long-term debt	228,126			240,625
Less: current maturities	(17,188		)	(12,500		)
Long-term debt, less current maturities	$	210,938		$	228,125

On April 24, 2012, HSNi entered into a $600 millionfive-year syndicated credit agreement ("Credit Agreement") which is secured by 100% of the voting equity securities of HSNi's U.S. subsidiaries and 65% of HSNi's first-tier foreign subsidiaries. Certain HSNi subsidiaries have unconditionally guaranteed HSNi's obligations under the Credit Agreement.  The Credit Agreement, which includes a $350 million revolving credit facility and a $250 million term loan, may be increased up to $850

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million subject to certain conditions and expires April 24, 2017. HSNi capitalized $5.5 million in financing costs related to the Credit Agreement and is amortizing these costs to interest expense over the Credit Agreement's five-year term.

The Credit Agreement includes various covenants, limitations and events of default customary for similar facilities including a maximum leverage ratio of 3.00x and a minimum interest coverage ratio of 3.00x. HSNi was in compliance with all such covenants as of December 31, 2014, with a leverage ratio of 0.68x and an interest coverage ratio of 55.73x. The Credit Agreement also contains covenants that limit our ability and the ability of our subsidiaries to, among other things, incur additional indebtedness, pay dividends or make other distributions to third parties, repurchase or redeem our stock, make investments, sell assets, incur liens, enter into agreements restricting our subsidiaries' ability to pay dividends, enter into transactions with affiliates and consolidate, merge or sell all or substantially all of our assets. Dividends, loans or advances to HSNi by its subsidiaries are not restricted by the Credit Agreement.

Loans under the Credit Agreement bear interest at a per annum rate equal to LIBOR plus a predetermined margin that ranges from 1.50% to 2.25% or the Base Rate (as defined in the Credit Agreement) plus a predetermined margin that ranges from 0.50% to 1.25%.  HSNi can elect to borrow at either LIBOR or the Base Rate and the predetermined margin is based on HSNi's leverage ratio. The term loan interest rate as of December 31, 2014 was 1.66%.  HSNi pays a commitment fee ranging from 0.25% to 0.40% (based on the leverage ratio) on the unused portion of the revolving credit facility. 

The amount available to HSNi under the revolving credit facility portion of the Credit Agreement is reduced by the amount of outstanding letters of credit issued under the revolving credit facility, which totaled $10.6 million as of December 31, 2014. The ability to draw funds under the revolving credit facility is dependent upon meeting the aforementioned financial covenants. As of December 31, 2014, the amount that could be borrowed under the revolving credit facility, in consideration of the financial covenants and the outstanding letters of credit, was approximately $339.4 million. As of December 31, 2014, there was no outstanding balance due under the revolving credit facility.

Aggregate contractual maturities of long-term debt are as follows (in thousands):

Years Ending December 31,
2015	$	17,188
2016	18,750
2017	192,188
	$	228,126

On January 27, 2015, HSNi entered into a new $1.25 billionfive-year credit agreement with a syndicate of banks, replacing its existing $600 million Credit Agreement. See Note 21-Subsequent Events for discussion of the new credit agreement.

On July 28, 2008, HSNi issued $240 million of 11.25% senior notes due 2016 (the “Senior Notes”). The Senior Notes were fully redeemed on August 1, 2012 for $253.5 million, or 105.625% of the principal amount, plus accrued and unpaid interest to the redemption date, at which time the Senior Notes were no longer deemed to be outstanding, interest ceased to accrue thereon and all rights of the holders of the Senior Notes ceased to exist, except for the right to receive the redemption price. HSNi drew $250 million from its term loan on July 31, 2012 and used its cash on hand to fund the redemption. HSNi reported approximately $18.6 million in pre-tax charges primarily associated with redemption of the Senior Notes. These charges resulted from the redemption premium of $13.5 million and $5.1 million related to the write-off of unamortized issuance costs and original issue discount.

NOTE 8—DERIVATIVE INSTRUMENTS

HSNi uses derivatives in the management of its interest rate risk with respect to its variable rate debt. HSNi's strategy is to eliminate the cash flow risk on a portion of its variable rate debt caused by changes in the benchmark interest rate (LIBOR). Derivative instruments are not entered into for speculative purposes.

HSNi entered into a forward-starting interest rate swap agreement on December 20, 2012 with a notional amount of $187.5 million at a fixed rate of 0.8525%, resulting in an all-in fixed rate of 2.3525% based on HSNi's leverage ratio as of December 31, 2014. The interest rate swap took effect on January 31, 2014 with a maturity date in April 2017. Under this swap, HSNi pays at a fixed rate and receives payments at a variable rate based on one-month LIBOR. The swap effectively fixes the floating LIBOR-based interest of our outstanding LIBOR-based debt. The interest rate swap was designated and qualified as a cash flow hedge; therefore, the effective portion of the changes in fair value is recorded in accumulated other

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comprehensive income (loss). Any ineffective portions of the changes in fair value of the interest rate swap will be immediately recognized directly to earnings in the consolidated statements of operations. The change in fair value of the interest rate swap (inclusive of reclassifications to net income) was a loss of $0.2 million and a gain of $0.8 million, net of tax, for the years ended December 2014 and 2013, respectively, and were reflected in "Accumulated other comprehensive income (loss)" in the consolidated balance sheets. As of December 31, 2014, HSNi estimates that approximately $1.0 million of unrealized losses included in accumulated other comprehensive income related to this swap will be realized and reported in earnings within the next twelve months.

The fair value of the interest rate swap asset as of December 31, 2014 and December 31, 2013 was $0.2 million and $0.6 million, respectively, and was recorded in "Other non-current assets" in the consolidated balance sheets. See Note 9 for discussion of the fair value measurements concerning this interest rate swap.

NOTE 9—FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value assumptions are made at a specific point in time and changes in underlying assumptions could significantly affect these estimates. HSNi applies the following framework for measuring fair value which is based on a three-level hierarchy:

Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of these items. The following table summarizes the fair value of HSNi's other financial assets and liabilities which are measured at fair value on a recurring basis in the consolidated balance sheets (in thousands):

	December 31, 2014
		Total Fair Value and Carrying Value on Balance Sheet		Fair Value Measurement Category
				Level 1		Level 2		Level 3
Assets:
Interest rate swap		$	208	$	—	$	208	$	—

	December 31, 2013
		Total Fair Value and Carrying Value on Balance Sheet		Fair Value Measurement Category
				Level 1		Level 2		Level 3
Assets:
Interest rate swap		$	574	$	—	$	574	$	—
Liabilities:
Contingent consideration		1,032		—		—		1,032

HSNi's interest rate swap was carried on the balance sheet at fair value as of December 31, 2014 and December 31, 2013. The swap was entered into for the purpose of hedging the variability of interest expense and interest payments on HSNi's long-term variable rate debt. The fair value is based on a valuation model which utilizes interest rate yield curves and credit spreads as the significant inputs to the model. These inputs are observable in active markets (level 2 criteria). HSNi considers credit risk associated with its own standing as well as the credit standing of any counterparties involved in the valuation of its financial instruments.

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In connection with the 2012 acquisition of Chasing Fireflies, the purchase price included contingent consideration that was based on achieving specific annual performance targets or a cumulative three-year performance target for the three-year period ending December 31, 2014. During the year ended December 31, 2014, the performance targets were not achieved. Therefore, during the year ended December 31, 2014, HSNi adjusted the fair value of the contingent consideration to zero.

During the year ended December 31, 2013 Chasing Fireflies performance targets were not achieved and the fair value of the contingent consideration was decreased $3.6 million to $1.0 million at December 31, 2013. During the year ended December 31, 2013, HSNi also recognized a fair value adjustment of $3.0 million for indefinite-lived intangible assets related to the acquisition of Chasing Fireflies. The fair value of the intangible assets, consisting of trademarks and trade names, was determined using the relief from royalty method (level 3 criteria). Key inputs used in this calculation included revenue growth, discount, royalty and terminal growth rates. The net impact of the impairment charge and the contingent consideration adjustment was a reduction of expense of $0.6 million and is included in "General and administrative expense" in the accompanying consolidated statements of operations.

The following table summarizes the fair value of HSNi’s financial assets and liabilities which are carried at cost (in thousands):

	December 31, 2014
	Carrying Value		Fair Value		Fair Value Measurement Category
					Level 1		Level 2		Level 3
Term Loan	$	228,126	$	228,126	$	—	$	228,126	$	—

	December 31, 2013
	Carrying Value		Fair Value		Fair Value Measurement Category
					Level 1		Level 2		Level 3
Term Loan	$	240,625	$	240,625	$	—	$	240,625	$	—

The fair value of the term loan was estimated by discounting expected cash flows at the rates currently offered to HSNi for debt of the same remaining maturities (level 2 criteria).

HSNi measures certain assets, such as property and equipment and definite-lived intangible assets, at fair value on a non-recurring basis. These assets are recognized at fair value if they are deemed to be impaired. There were no fair value adjustments to the carrying values of HSNi's property and equipment and definite-lived intangible assets during December 31, 2014 or 2013.

NOTE 10—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, 2014, 2013 and 2012, 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, 2014, 2013 and 2012, 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.

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

	Year Ended December 31,
	2014		2013		2012
Net income
Continuing operations	$	172,984	$	178,449	$	136,497
Discontinued operations	—		—		(5,822		)
Net income	$	172,984	$	178,449	$	130,675
Weighted average number of shares outstanding:
Basic	52,736		53,640		56,314
Dilutive effect of stock-based compensation awards	897		1,217		1,642
Diluted	53,633		54,857		57,956
Net income (loss) per share - basic:
Continuing operations	$	3.28	$	3.33	$	2.42
Discontinued operations	—		—		(0.10		)
Net income	$	3.28	$	3.33	$	2.32
Net income (loss) per share - diluted:
Continuing operations	$	3.23	$	3.25	$	2.36
Discontinued operations	—		—		(0.11		)
Net income	$	3.23	$	3.25	$	2.25
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	763		432		1,276

NOTE 11—STOCK-BASED AWARDS

Stock-based compensation expense is included in the following line items in the accompanying consolidated statements of operations (in thousands):

	Year Ended December 31,
	2014			2013			2012
Selling and marketing	$	4,736		$	3,793		$	3,515
General and administrative	10,870			10,250			15,541
Stock-based compensation expense before income taxes	15,606			14,043			19,056
Income tax benefit	(5,685		)	(4,835		)	(6,494		)
Stock-based compensation expense after income taxes	$	9,921		$	9,208		$	12,562

As of December 31, 2014, there was approximately $22.3 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is currently expected to be recognized on a straight-line basis over a weighted average period of approximately 2.1 years.

Second Amended and Restated 2008 Stock and Annual Incentive Plan

The Second Amended and Restated 2008 Stock and Annual Incentive Plan, as amended (the “Plan”), authorizes the issuance of 8.0 million shares of HSNi common stock for new awards granted by HSNi. The purpose of the Plan is to assist HSNi in attracting, retaining and motivating officers, employees, directors and consultants, and to provide HSNi with the ability to provide incentives more directly linked to the profitability of HSNi’s business and increases in shareholder value. As of December 31, 2014, there were approximately 2.6 million shares of common stock available for grants under the Plan.

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HSNi can grant restricted stock, restricted stock units ("RSUs"), market stock units ("MSUs"), stock options, stock appreciation rights (“SARs”), dividend equivalents and other stock-based awards under the Plan. Stock-based awards have a maximum term of 10 years. The exercise price of options and SARs granted under the Plan is required to be at, or above, the fair market value of HSNi’s stock on the date of grant. RSUs have rights to receive dividend equivalents that vest at the same time the underlying RSUs vest once the requisite service has been rendered. HSNi elects to issue shares of its common stock for RSU vestings and SAR exercises net of the employees’ minimum tax withholding obligation. The payments made by HSNi to the taxing authorities for these taxes were $12.7 million, $14.4 million, and $18.2 million for the years ended December 31, 2014, 2013 and 2012, respectively.

In conjunction with a special cash dividend declared in the first quarter of 2015, as required by the anti-dilution provisions of the Plans, adjustments were made to outstanding equity awards as of the ex-dividend date to preserve their value following the dividend. For further discussion of the impact of the special cash dividend on the outstanding equity awards, see Note 21-Subsequent Events.

Restricted Stock Units

RSUs are awards that are denominated in a hypothetical equivalent number of shares of HSNi’s common stock. At the time of grant, HSNi determines if the RSUs will be settled in cash, stock or both. The value to the holder of the RSU is based upon the market value of HSNi’s stock when the RSUs vest. Compensation expense for RSUs granted under the Plan is measured at the grant date as the fair market value of HSNi’s common stock and expensed ratably over the vesting term. The RSUs are generally subject to service-based vesting over a term of 3 years to 5 years.

A summary of the status of the nonvested RSUs, as of December 31, 2014 and changes during the year ended December 31, 2014 is as follows:

	Number of RSUs		Weighted Average Grant Date Fair Value
Nonvested at January 1, 2014	623,709		$	40.25
Granted	238,620		55.06
Vested	(191,106	)	29.18
Forfeited	(69,644	)	47.62
Nonvested at December 31, 2014	601,579		48.88

The weighted average per share fair value of RSUs granted during the years ended December 31, 2014, 2013 and 2012 based on market prices of HSNi’s common stock on the grant date was $55.06, $58.83, and $36.51, respectively.

The total fair value of RSUs that vested during the years ended December 31, 2014, 2013 and 2012 and settled in HSNi common stock was $10.9 million, $36.2 million, and $33.9 million, respectively. HSNi realizes a tax benefit for RSUs held by its employees in the year in which the award vests. The tax benefit realized by HSNi related to RSUs was approximately $4.2 million, $12.5 million, and $10.9 million for the years ended December 31, 2014, 2013 and 2012, respectively.

As of December 31, 2014, there was approximately $16.0 million of unrecognized compensation cost, net of estimated forfeitures, related to RSUs, which is currently expected to be recognized on a straight-line basis over a weighted average period of approximately 2.3 years.

Stock Options and SARs

SARs are similar to traditional stock options, except, upon exercise, holders of SARs will only receive a value equal to the spread between the current market price per share of the common stock and the exercise price. The SARs granted by HSNi may be settled in cash or common stock of HSNi, in the sole discretion of HSNi. All SARs exercised by employees of HSNi have been settled in stock. For all SARs currently outstanding, HSNi intends to settle these awards in stock upon exercise. The exercise price for awards granted under the Plan is required to be priced at, or above, the fair market value of HSNi’s stock at the date of grant. Awards typically vest ratably over a term of 3 years.

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A summary of the status of the outstanding stock options and SARs as of December 31, 2014 is as follows:

	Number of options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2014	2,580,889		$	34.15
Granted	423,579		55.05
Exercised	(650,740	)	24.34
Forfeited	(39,528	)	54.70
Expired	(17,520	)	17.63
Outstanding at December 31, 2014 (1)	2,296,680		40.54		5.3	$	81,429,314
Vested and expected to vest at December 31, 2014	2,223,860		40.04		5.2	$	79,976,327
Exercisable at December 31, 2014	1,598,089		35.07		3.9	$	65,406,938

(1) Approximately 0.3 million stock options outstanding as of December 31, 2014 were held by employees of the other Spincos.

The aggregate intrinsic value in the table above represents the pre-tax difference between the closing price of HSNi’s common stock on December 31, 2014 of $76.00 and the exercise price for all “in the money” awards at December 31, 2014. This amount changes based on the fair market value of HSNi’s common stock. The intrinsic value of the stock options and SARs exercised during the years ended December 31, 2014, 2013 and 2012 was approximately $23.4 million, $19.3 million, and $45.7 million, respectively. Cash received from stock option exercises for the years ended December 31, 2014, 2013 and 2012 was $0.6 million, $6.5 million, and $19.1 million, respectively. The tax benefit realized from stock option exercises for the years ended December 31, 2014, 2013 and 2012 was $8.8 million, $7.3 million, and $11.7 million, respectively.

The fair value of each stock option and SAR award, which HSNi intends to settle in stock, is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates various assumptions, including expected volatility and expected term. Expected stock price volatilities are estimated based on HSNi's historical volatility and the historical and implied volatilities of comparable publicly-traded companies. The risk-free interest rates are based on U.S. Treasury yields for notes with comparable terms as the awards in effect at the grant date. The expected term of options and SARs granted is based on an analysis of historical employee termination rates and option exercise patterns, giving consideration to expectations of future employee behavior. Dividends yields are estimated based on HSNi's historical and anticipated dividend payments.

The weighted average assumptions used in the Black-Scholes option pricing model are as follows:

	Year Ended December 31,
	2014		2013		2012
Volatility factor	36.4	%	49.1	%	46.5	%
Risk-free interest rate	1.55	%	0.85	%	0.91	%
Expected term	4.7		4.8		5.0
Dividend yield	1.8	%	1.2	%	1.4	%

The weighted average fair values of stock options and SARs granted from the Plan during the years ended December 31, 2014, 2013 and 2012 at market prices equal to HSNi’s common stock on the grant date were $15.24, $22.57, and $12.96, respectively.

At the date of the Spin-off, HSNi granted approximately 719,000 stock options to its Chief Executive Officer at exercise prices greater than market value on the date of grant with a term of 10 years and graded vesting over 4 years. The weighted average exercise price and the weighted average fair value related to these grants were $39.84 and $3.36, respectively. All other awards granted under the Plan have exercise prices based on the fair market value of HSNi’s common stock at the date of grant.

As of December 31, 2014, there was approximately $6.3 million of unrecognized compensation cost, net of estimated forfeitures, related to stock options and SARs, which is currently expected to be recognized on a straight-line basis over a weighted average period of approximately 1.7 years.

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The following table summarizes the information about stock options and SARs outstanding and exercisable as of December 31, 2014:

	Outstanding				Exercisable
	Number Outstanding  at December 31, 2014	Weighted Average Exercise  Price		Weighted Average Remaining Contractual Term in Years	Number Exercisable  at December 31, 2014	Weighted Average Exercise Price
$0.00 to $9.99	96,094	$	5.65	4.0	96,094	$	5.65
$10.00 to $19.99	136,836	17.74		3.7	136,836	17.74
$20.00 to $29.99	57,320	29.72		6.1	57,320	29.72
$30.00 to $39.99	959,121	34.92		3.9	848,201	34.82
$40.00 to $49.99	370,555	44.71		3.6	370,555	44.71
$50.00 to $59.99	676,754	56.72		8.7	89,083	59.19
	2,296,680				1,598,089

Performance-Based Awards

During the first quarter of 2010, HSNi implemented a performance-based equity compensation program for certain key members of Cornerstone’s management. The amount payable was based on the extent to which certain pre-established performance goals for Cornerstone were achieved during the three years ending December 31, 2012. These equity awards were accounted for as liabilities which were remeasured each reporting period based on the probability of achievement of the performance conditions.The amount earned pursuant to the award at the end of the December 31, 2012 service period was $16.8 million which was settled in shares of HSNi common stock in the first quarter of 2013.

During the third quarter of 2013, HSNi granted approximately 101,000 MSUs to its Chief Executive Officer. The MSUs vest over respective 3 years and 5 years performance periods (50% for each period). Payout percentages range between 0% and 200% of the target award depending on the awards' market condition, the future price of HSNi's stock at the end of each performance period as compared to HSNi's stock price at the date of grant (as defined in the MSU agreement). The fair value of the MSUs was $8.3 million, or an average of $82.67 per unit, and is recognized on a graded-vested basis over the performance periods. The fair value was measured on the grant date by applying a Monte Carlo simulation pricing model which estimates the potential outcome of reaching the market condition based on simulated future stock prices. The weighted average assumptions used in the valuation of the MSUs were the following: volatility factor of 39.7%, risk-free interest rate of 1.00%, expected term of 4.0 years and dividend yield of 1.1%.

During the years ended December 31, 2014, 2013 and 2012, HSNi granted performance-based cash awards to certain executive employees (“Performance Cash”). Performance Cash vests over a three year performance period. Payout percentages range between 0% and 200% of the target award based on the award’s market condition, HSNi’s Total Shareholder Return relative to a peer group at the end of the performance period. Performance Cash is accounted for as a liability-based award as it will be settled in cash. For the years ended December 31, 2014, 2013 and 2012, HSNi granted Performance Cash with an aggregate target value of $4.4 million, $2.7 million and $1.6 million, respectively, with a grant date fair value of $3.8 million, $2.6 million and $1.1 million, respectively. Fair value is measured using a Monte-Carlo simulation and is remeasured at the end of each reporting period. As of December 31, 2014, 2013 and 2012, a liability of $4.4 million, $1.6 million and $0.5 million, respectively, was recorded for these awards.

Employee Stock Purchase Plan

The HSN, Inc. 2010 Employee Stock Purchase Plan (“ESPP”) was approved May 2010 and 750,000 shares of HSNi common stock were reserved for issuance under the ESPP. The ESPP permits employees to purchase shares of HSNi’s common stock during semi-annual purchase periods. Under the terms of the ESPP, eligible employees accumulate funds through payroll deductions and purchase shares at a price equal to the lesser of 85% of the fair market value of the common stock at the grant date or purchase date. All shares purchased under the ESPP must be held for a period of 6 months.

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For the years ended December 31, 2014 and 2013, HSNi granted approximately 44,000 and 45,000 options, respectively, under the ESPP. The fair value of each option granted under the ESPP is determined on the grant date using the Black-Scholes option pricing model. The following are the weighted average assumptions used in the valuation of the ESPP options for the years ended December 31, 2014 and 2013:

	Year Ended December 31,
	2014		2013
Volatility factor	22.0	%	23.3	%
Risk-free interest rate	0.08	%	0.10	%
Expected term	0.5		0.5
Dividend yield	1.7	%	1.3	%

For the years ended December 31, 2014, 2013 and 2012, approximately $0.5 million of expense was included in the consolidated statements of operations. For the years ended December 31, 2014, 2013 and 2012, HSNi received cash proceeds from the participating employees of approximately $2.0 million, $1.9 million and $1.6 million, respectively.

Restricted Common Equity in Cornerstone Brands

In connection with the acquisition of Cornerstone Brands by IAC in 2005 certain members of Cornerstone Brand’s management were granted restricted common equity in Cornerstone Brands. These awards were granted on April 1, 2005 and were initially measured at fair value, which was amortized to expense over the vesting period. These awards vested ratably over 4 years, or earlier based upon the occurrence of certain prescribed events. The awards vested in non-voting restricted common shares of Cornerstone Brands. As of December 31, 2014, these awards were significantly out of the money and are not expected to result in any cost should HSNi exercise its call right.

NOTE 12—INCOME TAXES

The components of the provision for income taxes are as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Current income tax provision:
Federal	$	(96,269	)	$	(81,521	)	$	(76,992	)
State	(10,289		)	(9,990		)	(8,904		)
Current income tax provision	(106,558		)	(91,511		)	(85,896		)
Deferred income tax (provision) benefit:
Federal	1,468			(6,489		)	1,814
State	547			308			709
Deferred income tax (provision) benefit	2,015			(6,181		)	2,523
Income tax provision	$	(104,543	)	$	(97,692	)	$	(83,373	)

Current income taxes payable has been reduced by $12.9 million, $19.8 million, and $22.7 million for the years ended December 31, 2014, 2013 and 2012, respectively, for tax deductions attributable to stock-based compensation. The related income tax benefits of this stock-based compensation were recorded as amounts charged or credited to the income tax provision and additional paid-in capital.

The tax effects of cumulative temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are presented below (in thousands). The valuation allowance is related to items for which it is more likely than not that the tax benefit will not be realized.

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	December 31,
	2014			2013
Deferred tax assets:
Provision for accrued expenses	$	34,987		$	33,647
Inventories	13,969			13,125
Stock-based compensation	12,072			10,888
Net operating losses	1,705			1,531
Other	4,098			4,078
Total deferred tax assets	66,831			63,269
Less valuation allowance	(1,577		)	(1,495		)
Net deferred tax assets	65,254			61,774
Deferred tax liabilities:
Intangible and other assets	(92,267		)	(91,018		)
Prepaid expenses	(12,890		)	(13,574		)
Property and equipment	(16,216		)	(15,455		)
Total deferred tax liabilities	(121,373		)	(120,047		)
Net deferred tax liability	$	(56,119	)	$	(58,273	)

At December 31, 2014, HSNi had $4.8 million of net operating loss carryforwards which begin expiring in 2015. As of December 31, 2014 and 2013, HSNi had a valuation allowance of approximately $1.6 million and $1.5 million, respectively. Valuation allowances are recorded for certain deferred tax assets related to foreign and separate state net operating losses.

A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Income tax provision at the federal statutory rate of 35%	$	(97,135	)	$	(96,649	)	$	(76,955	)
State income taxes, net of effect of federal tax benefit	(6,306		)	(6,293		)	(5,327		)
Other, net	(1,102		)	5,250			(1,091		)
Income tax provision	$	(104,543	)	$	(97,692	)	$	(83,373	)

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, is as follows (in thousands):

	2014		2013			2012
Balance at beginning of year	$	910	$	682		$	664
Additions based on tax positions related to the current year	525		417			—
Additions for tax positions of prior years	576		—			18
Reductions for tax positions of prior years	—		(189		)	—
Balance at end of year	$	2,011	$	910		$	682

As of December 31, 2014 and 2013, the unrecognized tax benefits, including interest, were $2.4 million and $1.1 million, respectively. At December 31, 2014 and 2013, there are approximately $2.4 million and $0.9 million of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate.

HSNi recognizes interest and, if applicable, penalties related to unrecognized tax benefits in income tax expense. There is no material interest on unrecognized tax benefits included in income tax expense for the years ended December 31, 2014, 2013 and 2012. At December 31, 2014 and 2013, HSNi has no material accrual for the payment of interest or penalties.

HSNi believes that it is reasonably possible that its unrecognized tax benefits could decrease by an immaterial amount within twelve months of the current reporting date due to settlement with the taxing authority.

HSNi is routinely under audit by federal, state, local and foreign tax authorities. These audits include questioning the timing and the amount of deductions and the allocation of income among various tax jurisdictions. Income taxes payable include amounts considered sufficient to pay assessments that may result from examination of prior year returns; however, the

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amount paid upon resolution of issues raised may differ from the amount provided. Differences between the reserves for tax contingencies and the amounts owed by HSNi are recorded in the period they become known.

The Internal Revenue Service ("IRS") has concluded its examination of HSNi's consolidated federal income tax return for the year ended December 31, 2010 and its limited scope examination of HSNi's consolidated federal income tax return for the year ended December 31, 2011. No material adjustments resulted from these IRS examinations. No state income tax examinations are currently in process.

HSNi and several companies previously owned by IAC, were spun-off from IAC on August 20, 2008. In connection with the spin-off, HSNi entered into a Tax Sharing Agreement with IAC pursuant to which, among other things, each of the Spincos has indemnified IAC and the other Spincos for any taxes resulting from the Spin-off of such Spinco (and any related interest, penalties, legal and professional fees, and all costs and damages associated with related shareholder litigation or controversies) to the extent such amounts result from (i) any act or failure to act by such Spinco described in the covenants in the Tax Sharing Agreement, (ii) any acquisition of equity securities or assets of such Spinco or a member of its group, and (iii) any breach by such Spinco or any member of its group of any representation or covenant contained in the separation documents or in the documents relating to the IRS private letter ruling and/or tax opinions. In the event an adjustment with respect to a pre-spin-off period for which IAC is responsible results in a tax benefit to HSNi in a post-spin-off period, HSNi will be required to pay such tax benefit to IAC. In general, IAC controls all audits and administrative matters and other tax proceedings relating to the consolidated federal income tax return of the IAC group and any other tax returns for which the IAC group is responsible. The provisions set forth in the Tax Sharing Agreement could subject HSNi to future tax contingencies.

The IRS has completed its review of the IAC consolidated tax returns for the years ended December 31, 2001 through 2009, which includes the operations of HSNi through the date of the Spin-off. The settlement for these years has been submitted to and approved by the Joint Committee on Taxation. Various IAC consolidated tax returns filed with state, local and foreign jurisdictions are currently under examination for various tax years beginning with 2006. By virtue of the Tax Sharing Agreement with IAC, HSNi is indemnified with respect to additional tax liabilities for consolidated or combined federal and state tax returns prepared and filed by IAC prior to the Spin-off, but is liable for any additional tax liabilities for HSNi separately filed state income tax returns.

NOTE 13—COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, HSNi is a party to various audits, claims and lawsuits. These audits or litigation may relate to claims involving property, personal injury, contract, intellectual property (including patent infringement), sales tax, regulatory compliance, employment matters and other claims. HSNi establishes reserves for specific legal or tax compliance matters that it has determined the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where it believes an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that an unfavorable resolution of claims against HSNi, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on its liquidity, results of operations, financial condition or cash flows, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future and an unfavorable resolution of such a proceeding could have a material impact. Moreover, any claims or regulatory actions against HSNi, whether meritorious or not, could be time-consuming, result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources.

HSNi leases a satellite transponder, warehouse and office space, equipment and services used in connection with its operations under various operating leases, many of which contain escalation clauses.

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Future minimum payments under operating lease agreements are as follows (in thousands):

Years Ending December 31,
2015	$	26,690
2016	23,797
2017	19,825
2018	16,337
2019	12,180
Thereafter	4,850
Total	$	103,679

Expenses charged under these agreements were $25.1 million, $23.1 million, and $22.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, and were included in "General and administrative" expense in the accompanying consolidated statements of operations.

HSNi also has funding commitments that could potentially require its performance in the event of demands by third parties or contingent events, as follows (in thousands):

	Amount of Commitments Expiration Per Period
	Total Amounts Committed		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
Letters of credit and surety bonds	$	14,253	$	14,193	$	60	$	—	$	—
Purchase obligations	101,848		78,964		15,074		7,810		—
Total commercial commitments	$	116,101	$	93,157	$	15,134	$	7,810	$	—

The letters of credit (“LOCs”) primarily consist of trade LOCs, which are used for inventory purchases. Trade LOCs are guarantees of payment based upon the delivery of goods. The surety bonds primarily consist of customs bonds, which relate to the import of merchandise into the United States.

The purchase obligations primarily relate to cable contracts and include obligations for future cable distribution and commission guarantees.

NOTE 14—RELATED PARTY TRANSACTIONS

Relationship Between Liberty Media Corporation and HSNi

Spinco Agreement

In connection with the Spin-off, pursuant to a Spinco Assignment and Assumption Agreement (the “Spinco Agreement”), dated as of August 20, 2008, among HSNi, IAC, Liberty Media Corporation (“Liberty”) and a subsidiary of Liberty that held shares of IAC common stock and IAC Class B common stock (together with Liberty, the “Liberty Parties”), HSNi (i) assumed from IAC all rights and obligations providing for post-Spin-off governance and other arrangements at HSNi under the Spinco Agreement, dated May 13, 2008, among IAC, Liberty and affiliates of Liberty that held shares of IAC common stock and/or Class B common stock at the time such Spinco Agreement was entered into, and (ii) as required by the Spinco Agreement, entered into a registration rights agreement with the Liberty Parties. Following is a summary of the material terms of the Spinco Agreement:

Representation of Liberty on the Spinco Boards of Directors

The Spinco Agreement generally provides that so long as Liberty beneficially owns securities of HSNi representing at least 20% of the total voting power of HSNi’s equity securities, Liberty has the right to nominate up to 20% of the directors serving on HSNi’s Board of Directors (rounded up to the nearest whole number). Any director nominated by Liberty must be reasonably acceptable to a majority of the directors on HSNi’s Board who were not nominated by Liberty. All but one of Liberty’s nominees serving on the Board of Directors must qualify as “independent” under applicable stock exchange rules. In addition, the Nominating Committee of the Board may include only “Qualified Directors,” namely directors other than any who were nominated by Liberty, are officers or employees of HSNi or were not nominated by the Nominating Committee of the HSNi Board in their initial election to the Board and for whose election any Liberty Party voted shares.

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Acquisition Restrictions

The Liberty Parties have agreed not to acquire beneficial ownership of any equity securities of HSNi (with specified exceptions) unless:

• the acquisition was approved by a majority of the Qualified Directors;

• the acquisition is permitted under the provisions described in “Competing Offers” below; or

• after giving effect to the acquisition, Liberty’s ownership percentage of the equity securities of HSNi, based on voting power, would not exceed the Applicable Percentage.

The “Applicable Percentage” is Liberty’s ownership percentage upon the Spin-off of HSNi, based on voting power (approximately 30%), plus 5%, but in no event more than 35%. Notwithstanding the foregoing, Liberty’s beneficial ownership may increase (and has increased) above the Applicable Percentage as a result of HSNi’s share repurchase program. Following the Spin-off, the Applicable Percentage for the Spinco is reduced for specified transfers of equity securities of the Spinco by the Liberty Parties. During the first two years following the Spin-off, acquisitions by the Liberty Parties were further limited to specified extraordinary transactions and, otherwise, to acquisitions representing no more than one-third of HSNi Common Stock received by the Liberty Parties in the Spin-off:

• transfers pursuant to a third party tender or exchange offer or in connection with any merger or other business combination, which merger or business combination has been approved by HSNi;

• transfers in a public offering in a manner designed to result in a wide distribution, provided that no such transfer is made, to the knowledge of the Liberty Parties, to any person whose ownership percentage (based on voting power) of HSNi’s equity securities, giving effect to the transfer, would exceed 15%;

• a transfer of all of the equity securities of HSNi beneficially owned by the Liberty Parties and their affiliates in a single transaction if the transferee’s ownership percentage (based on voting power), after giving effect to the transfer, would not exceed the Applicable Percentage and only if the transferee assumes all of the rights and obligations (subject to limited exceptions) of the Liberty Parties under the Spinco Agreement;

• specified transfers in connection with changes in the beneficial ownership of the ultimate parent company of a Liberty Party or a distribution of the equity interests of a Liberty Party or certain similar events; and

• specified transfers relating to certain hedging transactions or stock lending transactions in respect of the Liberty Parties’ equity securities in HSNi, subject to specified restrictions.

Competing Offers

During the period when Liberty continues to have the right to nominate directors to HSNi’s Board of Directors, if the Board of Directors determines to pursue certain types of transactions on a negotiated basis (either through an “auction” or with a single bidder), Liberty is granted certain rights to compete with the bidder or bidders, including the right to receive certain notices and information, subject to specified conditions and limitations. In connection with any such transaction that HSNi is negotiating with a single bidder, the Board of Directors must consider any offer for a transaction made in good faith by Liberty but is not obligated to accept any such offer or to enter into negotiations with Liberty.

If a third party (x) commences a tender or exchange offer for at least 35% of the capital stock of HSNi other than pursuant to an agreement with HSNi or (y) publicly discloses that its ownership percentage (based on voting power) exceeds 20% and HSNi’s Board fails to take certain actions to block such third party from acquiring an ownership percentage of HSNi (based on voting power) exceeding the Applicable Percentage, the Liberty Parties generally will be relieved of the obligations described under “Standstill Restrictions” and “Acquisition Restrictions” above to the extent reasonably necessary to permit Liberty to commence and consummate a competing offer. If Liberty’s ownership percentage (based on voting power) as a result of the consummation of a competing offer in response to a tender or exchange offer described in (x) above exceeds 50%, any consent or approval requirements of the Qualified Directors in the Spinco Agreement will be terminated, and, following the later of the second anniversary of the Spin-off and the date that Liberty’s ownership percentage (based on voting power) exceeds 50%, the obligations described under “Acquisition Restrictions” will be terminated.

Other

Following the Spin-off, amendments to the Spinco Agreement and determinations required to be made thereunder (including approval of transactions between a Liberty Party and HSNi that would be reportable under the proxy rules) will require the approval of the Qualified Directors.

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Registration Rights Agreement

Under the registration rights agreement, the Liberty Parties and their permitted transferees (the “Holders”) will be entitled to three demand registration rights (and unlimited piggyback registration rights) in respect of the shares of HSNi common stock received by the Liberty Parties as a result of the Spin-off and other shares of HSNi common stock acquired by the Liberty Parties consistent with the Spinco Agreement (collectively, the “Registrable Shares”). The Holders will be permitted to exercise their registration rights in connection with certain hedging transactions that they may enter into with respect to the Registrable Shares.

HSNi will be obligated to indemnify the Holders, and each selling Holder will be obligated to indemnify HSNi, against specified liabilities in connection with misstatements or omissions in any registration statement.

NOTE 15—SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental Disclosure of Cash Flow Information:

	Year Ended December 31,
	2014			2013			2012
	(in thousands)
Cash paid during the period for:
Income tax payments	$	87,787		$	92,502		$	52,709
Income tax refunds	(482		)	(2,061		)	(10		)
Interest payments	6,142			5,230			29,985
Non-cash investing activities:
Capital expenditures incurred but paid in advance	9,100			—			—
Non-cash financing activities:
Effective portion of change in interest rate swap	(1,581		)	1,296			755

NOTE 16—SHAREHOLDERS’ EQUITY

Stock Purchase Rights

In December 2008, HSNi’s Board of Directors approved the creation of a Series A Junior Participating Preferred Stock, adopted a shareholders rights plan and declared a dividend of one right for each outstanding share of common stock held by our shareholders of record as of the close of business on January 5, 2009. The rights attached to any additional shares of common stock issued after January 5, 2009. Initially, these rights, which trade with the shares of HSNi’s common stock, will not be exercisable. Under the rights plan, these rights will be exercisable if a person or group acquires or commences a tender or exchange offer for 15% or more of HSNi’s common stock (except for certain grandfathered persons, such as Liberty, to which higher thresholds apply). If the rights become exercisable, each right will permit its holder, other than the “acquiring person,” to purchase from us shares of common stock at a 50% discount to the then prevailing market price. As a result, the rights will cause substantial dilution to a person or group that becomes an “acquiring person” on terms not approved by HSNi’s Board of Directors.

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Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) includes the cumulative gains and losses of derivative instruments that qualify as cash flow hedges. The following table provides a rollforward of accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012 (in thousands):

	2014			2013			2012
Accumulated other comprehensive income (loss) as of January 1,	$	354		$	(471	)	$	—
Other comprehensive (loss) income before reclassifications	(1,581		)	1,329			(755		)
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense in the consolidated statements of operations	1,215			—			—
Income tax (benefit) expense	139			(504		)	284
Other comprehensive income, net of tax	(227		)	825			(471		)
Accumulated other comprehensive income (loss) as of December 31,	$	127		$	354		$	(471	)

Share Repurchase Program

On September 27, 2011, HSNi’s Board of Directors approved a share repurchase program which allowed HSNi to purchase 10 million shares of its common stock from time to time through privately negotiated and/or open market transactions. For the year ended December 31, 2014, HSNi acquired approximately 1.0 million shares of outstanding common stock for $55.5 million under the program at an average price of $54.87. For the year ended December 31, 2013, HSNi acquired approximately 2.7 million shares of outstanding common stock for $146.9 million under the program at an average price of $53.67. In July 2014, HSNi completed its 10 million share repurchase program at an aggregate cost of $451.0 million, representing an average cost of $45.10 per share. All shares were immediately retired upon purchase.

On January 27, 2015, HSNi's Board of Directors approved a new share repurchase program which will allow HSNi to purchase up to 4 million shares of its common stock. The timing of any repurchases and actual number of shares repurchased will depend 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. See discussion of new share repurchase program in Note 21-Subsequent Events.

Dividend Policy

During the year ended December 31, 2014, HSNi's Board of Directors approved four quarterly cash dividends totaling $1.10 per common share resulting in aggregate dividend payments of approximately $57.8 million. During the year ended December 31, 2013, HSNi’s Board of Directors approved four quarterly cash dividends totaling $0.79 per common share resulting in a dividend payment of approximately $42.3 million.

In January 2015, HSNi's Board of Directors approved a special cash dividend of $10.00 per common share, representing $524 million in the aggregate, that will be paid February 19, 2015 to HSNi record holders as of February 9, 2015. In February 2015, HSNi's Board of Directors approved a quarterly cash dividend of $0.35 per common share. The dividend will be paid March 25, 2014 to HSNi's record holders as of March 11, 2014. See discussion of special cash dividend in Note 21-Subsequent Events.

NOTE 17—DISCONTINUED OPERATIONS

In May 2012 and July 2012, substantially all of the assets and certain liabilities of Smith+Noble, a Cornerstone brand specializing in window treatments, and The Territory Ahead, a Cornerstone brand specializing in casual apparel for men and women, were sold for $5.5 million and $1.1 million, respectively. The results of operations for Smith+Noble and The Territory Ahead are presented separately as “Loss from discontinued operations, net of tax” in the consolidated statements of operations for all periods presented, and the cash flows are presented separately as discontinued operations in the consolidated statements of cash flows for all periods presented. Cornerstone recorded pre-tax losses of $6.0 million on the sales, including related impairment charges, in the second quarter of 2012, which is included in “Loss from discontinued operations, net of tax” in the accompanying consolidated statements of operations.

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The following table reflects the results of Smith+Noble and The Territory Ahead that are reported as discontinued operations for all periods presented (in thousands):

	Year Ended December 31,
	2014		2013		2012
Net sales	$	—	$	—	$	40,154
Loss from discontinued operations (including loss on sale of $6.0 million recognized in the second quarter of 2012)	$	—	$	—	$	(9,370	)
Income tax benefit	—		—		3,548
Loss from discontinued operations, net of tax	$	—	$	—	$	(5,822	)

NOTE 18—ACQUISITION

In April 2012, HSNi, through Cornerstone, acquired substantially all of the assets and liabilities of Chasing Fireflies, LLC, a leading direct-to-consumer premium children's and family lifestyle brand. The purchase price was $22.9 million in cash and contingent consideration valued at $6.5 million as of the acquisition date. The fair value of the contingent consideration was estimated by applying a probability-weighted income approach. The acquisition was accounted for as a business combination and the total purchase consideration was assigned to the assets acquired, primarily inventory and other assets totaling $8.6 million and liabilities assumed totaling $2.6 million, at their estimated fair value as of the acquisition date. The allocation of the identifiable intangible assets and goodwill included $13.5 million primarily for trade names and customer relationships and $9.9 million for goodwill. Proforma information was not presented for this acquisition as it was not material to HSNi's consolidated results of operations or financial position.

Chasing Fireflies did not achieve the performance targets to earn the outstanding contingent consideration for the years ended December 31, 2014 and December 31, 2013; therefore, HSNi reduced the fair value of the contingent consideration by $1.0 million and $3.6 million, respectively, which was included in "General and administrative expense" in the accompanying consolidated statements of operations.

While performing its annual impairment testing in the fourth quarter of fiscal 2013 for HSNi's goodwill and indefinite-lived intangible assets, HSNi determined the fair value of the indefinite-lived intangible assets from the Chasing Fireflies acquisition was lower than its carrying value; therefore, an impairment charge of $3.0 million was recorded during the fourth quarter of fiscal 2013 and was included in "General and administrative expense" in the accompanying consolidated statements of operations. See Note 3 for a further discussion on goodwill and indefinite-lived intangible assets.    

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NOTE 19—QUARTERLY RESULTS (UNAUDITED)

	Quarter Ended
	March 31,			June 30,		September 30,		December 31,
	(a)					(b)		(c) (d)
	(In thousands, except per share data)
Year Ended December 31, 2014
Net sales	$	777,420		$	855,204	$	837,477	$	1,117,894
Gross profit	275,774			313,135		302,415		381,737
Operating income	41,868			67,367		65,968		109,406
Income from continuing operations	24,182			40,940		39,531		68,331
Loss from discontinued operations, net of tax	—			—		—		—
Net income	24,182			40,940		39,531		68,331
Income from continuing operations per share:
Basic	$	0.45		$	0.77	$	0.75	$	1.30
Diluted	$	0.45		$	0.76	$	0.74	$	1.28
Net income per share:
Basic	$	0.45		$	0.77	$	0.75	$	1.30
Diluted	$	0.45		$	0.76	$	0.74	$	1.28
Dividends declared per common share	$	0.25		$	0.25	$	0.25	$	0.35
Year Ended December 31, 2013
Net sales	$	772,651		$	812,606	$	798,890	$	1,019,835
Gross profit	280,147			308,777		288,590		352,300
Operating income	52,518			71,299		61,085		97,752
Income from continuing operations	31,553			43,271		42,052		61,573
(Loss) income from discontinued operations, net of tax	(9		)	9		—		—
Net income	31,544			43,280		42,052		61,573
Income from continuing operations per share:
Basic	$	0.58		$	0.81	$	0.79	$	1.16
Diluted	$	0.56		$	0.79	$	0.77	$	1.14
Net income per share:
Basic	$	0.58		$	0.81	$	0.79	$	1.16
Diluted	$	0.56		$	0.79	$	0.77	$	1.14
Dividends declared per common share	$	0.18		$	0.18	$	0.18	$	0.25

(a) The first quarter of 2014 includes a $3.1 million settlement with the Consumer Product Safety Commission.

(b) The third quarter of 2013 includes discrete tax benefits of $3.7 million which increased diluted earnings per share by $0.07.

(c) The fourth quarter of 2013 includes a $3.6 million reduction to a previously recorded contingent consideration obligation and a $3.0 million impairment charge of intangible assets related to a 2012 acquisition resulting in a net expense reduction of $0.6 million, or $1.7 million net of taxes. These fair value adjustments increased diluted earnings per share by $0.03.

(d) The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share by $0.06.

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NOTE 20—RETIREMENT AND SAVINGS PLANS

Effective December 31, 2008, HSNi established the HSN, Inc. Retirement Savings Plan that qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 50% of their pretax salary, up to the statutory limits. For the years ended December 31, 2014 and December 31, 2013, HSNi contributed fifty cents for each dollar a participant contributed of the first 6% of a participant's deferrals. For the year ended December 31, 2012, HSNi contributed twenty-five cents for each dollar a participant contributed of the first 6% of a participant's deferrals. HSNi’s matching contributions were $4.6 million, $4.6 million and $2.0 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Effective January 1, 2014, HSNi initiated a nonqualified deferred compensation plan allowing salary and annual bonus deferrals for qualifying employees as permitted by the Internal Revenue Code. Participant deferrals earn investment returns based on a select number of investment options, including equity and debt mutual funds. HSNi invested comparable amounts in marketable securities through life insurance policies to mitigate the risk associated with the investment return on the employee deferrals. Assets related to the funded portion of the deferred compensation plan are held in a rabbi trust which remains subject to claims of HSNi's general creditors. HSNi remains liable to the participants for the unfunded portion of the plan. HSNi records changes in the fair value of the asset and liability in the statement of operations. As of December 31, 2014, the company-owned life insurance policies had a cash surrender value of $0.5 million and was recorded in "Other non-current assets" in the consolidated balance sheet and the deferred compensation liability was $0.6 million and was recorded in "Other long-term liabilities" in the consolidated balance sheet.

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NOTE 21—SUBSEQUENT EVENTS

New Credit Agreement

On January 27, 2015, HSNi entered into a $1.25 billionfive-year syndicated credit agreement ("Credit Agreement") which is secured by 100% of the voting equity securities of HSNi's U.S. subsidiaries and 65% of HSNi's first-tier foreign subsidiaries. The Credit Agreement replaced the existing $600 million credit facility that was set to expire in April 2017. Certain HSNi subsidiaries have unconditionally guaranteed HSNi's obligations under the Credit Agreement. The Credit Agreement, which includes a $750 million revolving credit facility and a $500 million term loan, may be increased up to $1.75 billion subject to certain conditions and expires January 27, 2020. HSNi drew $200 million from its term loan under the new Credit Agreement on January 27, 2015 to repay its existing term loan of $228.1 million and drew the remaining $300 million from its term loan and $200 million under the revolving credit facility, both under the new Credit Agreement, on February 18, 2015 to fund a $524 million special cash dividend that was paid on February 19, 2015, as discussed below.

In connection with the termination of the prior credit agreement, of the unamortized deferred financing costs of $2.4 million, $0.5 million will be written off in the first quarter of 2015. The balance of $1.9 million will be amortized to interest expense over the five-year term of the new Credit Agreement in addition to the $6.6 million in capitalized financing costs related to the new Credit Agreement.

The Credit Agreement includes various covenants, limitations and events of default customary for similar facilities

including a maximum leverage ratio of 3.50x and a minimum interest coverage ratio of 3.00x. Loans under the Credit Agreement bear interest at a per annum rate equal to a LIBOR rate plus a predetermined margin that ranges from 1.50% to 2.25% or the Base Rate (as defined in the Credit Agreement) plus a predetermined margin that ranges from 0.50% to 1.25%. HSNi can elect to borrow at either a LIBOR or the Base Rate and the predetermined margin is based on HSNi's leverage ratio. HSNi pays a commitment fee ranging from 0.20% to 0.40% (based on the leverage ratio) on the unused portion of the revolving credit facility.

Special Cash Dividend and Share Repurchase Program

Effective January 27, 2015, HSNi's Board of Directors approved a special cash dividend of $10.00 per common share, representing $524 million in the aggregate, that was paid February 19, 2015 to HSNi record holders as of February 9, 2015. The special cash dividend was funded primarily from HSNi's new $1.25 billion Credit Agreement. As of December 31, 2014, on a pro forma basis after giving retroactive effect to the special cash dividend, HSNi's leverage ratio of net debt to Adjusted EBITDA would have been approximately 1.8x. Additionally, the Board also authorized a new share repurchase program covering 4 million shares, principally to offset dilution related to HSNi's equity compensation programs.

In conjunction with the special cash dividend, as required by the anti-dilution provisions of HSNi's equity compensation plans (the "Plans"), adjustments were made to outstanding equity awards as of the ex-dividend date to preserve their value following the dividend, as follows: (i) the number of shares subject to outstanding RSUs was increased as a result of the reinvestment of the dividend; and (ii) the exercise prices of outstanding stock options and SARs and the grant date fair value of MSUs were reduced and the number of shares subject to such awards was increased. Approximately 452,000 additional awards were issued as a result of the special dividend. These adjustments did not result in additional stock-based compensation expense, as the fair value of the outstanding awards did not change. As further required by the Plans, the maximum number of shares issuable under the Plans was also proportionally adjusted, which resulted in approximately 943,000 additional shares available to be issued.

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Schedule II

HSN, INC. AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS

Description	Balance at Beginning of Period		Charges to Earnings		Charges to Other Accounts			Deductions				Balance at End of Period
2014
Allowance for doubtful accounts	$	16,863	$	23,986	$	1,874		$	(23,899	)	(1)	$	18,824
Sales return accrual	40,072		655,304		—			(654,587		)		40,789
Deferred tax valuation allowance	1,495		82		—			—				1,577
2013
Allowance for doubtful accounts	$	14,537	$	23,414	$	13		$	(21,101	)	(1)	$	16,863
Sales return accrual	40,554		648,381		—			(648,863		)		40,072
Deferred tax valuation allowance	5,293		262		(4,060		)	—				1,495
2012
Allowance for doubtful accounts	$	13,127	$	24,186	$	(137	)	$	(22,639	)	(1)	$	14,537
Sales return accrual	39,563		658,394		205			(657,608		)		40,554
Deferred tax valuation allowance	14,274		23		(9,004		)	—				5,293

(1) Write-off of uncollectible accounts receivable

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain a system of disclosure controls and procedures designed to provide reasonable assurance that the information required to be disclosed by HSNi in reports that it files and submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls also are designed to reasonably assure that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Disclosure controls include components of internal control over financial reporting, which consists of control processes designated to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with United States generally accepted accounting principles.

We monitor and evaluate on an ongoing basis our disclosure controls and procedures in order to improve their overall effectiveness. In the course of these evaluations, we modify and refine our internal processes as conditions warrant.

Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) promulgated under the Exchange Act) as of December 31, 2014. Based on that evaluation, management has concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and to ensure that information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Management’s Annual Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate “internal control over financial reporting” (as defined in Rule 13a-15(f) under the Exchange Act) for the Company. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. Our management does not expect that our disclosure controls or our internal controls over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

As required by Rule 13a-15(b) under the Exchange Act, our management evaluated the effectiveness of our internal controls and procedures (as defined by Rule 13a-15(e) and 15d-15(e) under the Exchange Act). In making this assessment, our management used the criteria for effective internal control over financial reporting described in “Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based upon that evaluation and criterion, we concluded that as December 31, 2014, our internal control over financial reporting was effective.

Our independent registered certified public accounting firm, Ernst & Young LLP, has issued an attestation report on our internal control over financial reporting. The attestation report is included herein.

Changes in Internal Control Over Financial Reporting

We regularly monitor and evaluate on an ongoing basis our internal control over financial reporting in order to improve its effectiveness. In the course of these evaluations, we modify and refine our internal processes as conditions warrant.

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As required by Rule 13a-15(d) under the Exchange Act, our management, including our Chief Executive Officer and our Chief Financial Officer, also conducted an evaluation of our internal control over financial reporting to determine whether any changes occurred during the quarter ended December 31, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Based on that evaluation, management has concluded that there were no such changes during this period.

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Report of Independent Registered Certified Public Accounting Firm

The Board of Directors and Shareholders of HSN, Inc.

We have audited HSN, Inc. and subsidiaries’ internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework)(the COSO criteria). HSN, Inc. and subsidiaries’ management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying management’s annual report on internal control over financial reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, HSN, Inc. and subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of HSN, Inc. and subsidiaries as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2014 of HSN, Inc. and subsidiaries and our report dated February 26, 2015 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Tampa, Florida

February 26, 2015

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ITEM 9B. OTHER INFORMATION

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Incorporated by reference from our Proxy Statement for our 2015 Annual Meeting of Shareholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2014.

ITEM 11. EXECUTIVE COMPENSATION

Incorporated by reference from our Proxy Statement for our 2015 Annual Meeting of Shareholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2014.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS

Incorporated by reference from our Proxy Statement for our 2015 Annual Meeting of Shareholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2014.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

Incorporated by reference from our Proxy Statement for our 2015 Annual Meeting of Shareholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2014.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Incorporated by reference from our Proxy Statement for our 2015 Annual Meeting of Shareholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2014.

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PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) The following documents are filed as part of this report:

1. Financial Statements.

Financial statements filed as part of this Form 10-K are listed under Item 8.

2. Financial Statement Schedules.

Financial statement schedules filed as part of this Form 10-K are listed under Item 8. All other schedules have been omitted because they are either not applicable or not required under the instructions contained in Regulation S-X because the information called for is contained in the financial statements and notes thereto.

3. Exhibits.

The documents set forth below, numbered in accordance with Item 601 of Regulation S-K, are filed herewith or incorporated herein by reference to the location indicated.

Exhibit No.	Description of Document	Method of Filing
3.1	Amended and Restated Certificate of Incorporation of HSN, Inc.	Exhibit 3.1 to the Company’s Current Report on Form 8-K filed August 25, 2008
3.2	Amended and Restated By-laws of HSN, Inc.	Exhibit 3.2 to the Company’s Current Report on Form 8-K filed August 25, 2008
3.3	Certificate of Designations, Preferences and Rights to Series A Junior Participating Preferred Stock	Exhibit 3.3 to the Company’s Annual Report on Form 10-K filed March 31, 2009
4.1	Rights Agreement, dated as of December 23, 2008, between HSN, Inc. and The Bank of New York Mellon, as Rights Agent.	Exhibit 4.1 to the Company’s Current Report on Form 8-K filed December 29, 2008
4.2	Indenture, dated as of July 28, 2008, between HSN, Inc., as Issuer, and the Bank of New York Mellon, as Trustee	Exhibit 10.13 to the Company’s Registration Statement on Form S-1 (Registration No. 333-152697) filed August 1, 2008
4.3	First Supplemental Indenture, dated as of August 20, 2008, between HSN, Inc., as Issuer, and The Bank of New York Mellon, as Trustee	Exhibit 4.1 to the Company’s Current Report on Form 8-K filed August 25, 2008
4.4	Second Supplemental Indenture dated as of January 1, 2010 between HSN, Inc., as Issuer, and The Bank of New York Mellon, as Trustee	Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q filed August 4, 2010
4.5	Third Supplemental Indenture, dated as of April 19, 2012, among HSN, Inc., as Issuer, the Guarantors listed on Appendix I and Appendix II, and The Bank of New York Mellon Trust Company, N.A., as Trustee	Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q filed May 2, 2012
10.1	Separation and Distribution Agreement, dated August 20, 2008, by and among HSN, Inc., Interval Leisure Group, Inc., Ticketmaster, Tree.com, Inc. and IAC/InterActiveCorp	Exhibit 10.1 to the Company’s Current Report on Form 8-K filed August 25, 2008
10.2	Tax Sharing Agreement, dated August 20, 2008, among HSN, Inc., Interval Leisure Group, Inc., Ticketmaster, Inc., Tree.com and IAC/InterActive Corp	Exhibit 10.2 to the Company’s Current Report on Form 8-K filed August 25, 2008
10.3	Employee Matters Agreement, dated August 20, 2008, among HSN, Inc., Interval Leisure Group, Inc., Ticketmaster, Tree.com, Inc. and IAC/InterActiveCorp	Exhibit 10.3 to the Company’s Current Report on Form 8-K filed August 25, 2008

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Exhibit No.	Description of Document	Method of Filing
10.4	Registration Rights Agreement, dated as of August 20, 2008, among Liberty Media Corporation, the Liberty Parties (as defined in the Agreement) and HSN, Inc.	Exhibit 10.5 to the Company’s Current Report on Form 8-K filed December 29, 2008
10.5	Spinco Assignment and Assumption Agreement, dated as of August 20, 2008, by and among IAC/InterActive Corp, HSN, Inc., Liberty Media Corporation and Liberty USA Holdings, LLC	Exhibit 10.6 to the Company’s Current Report on Form 8-K filed August 25, 2008
10.6	Spinco Agreement, dated as of May 13, 2008, between IAC/InterActiveCorp, Liberty Media Corp., LMC Silver King, Inc., Liberty HSN II, Inc., LMC USA VIII, Inc., LMC USA IX, Inc., LMC USA XI, Inc., LMC USA XII, Inc., LMC USA XIII, Inc., LMC USA XIV, Inc., LMC USA XV, Inc., Liberty Tweety, Inc., BDTV Inc., BDTV II Inc., BDTV III Inc., BDTV IV Inc. and Barry Diller	Exhibit 10.1 to IAC/InterActiveCorp’s Current Report on Form 8-K (SEC File No. 0-20570) dated May 16, 2008 and incorporated herein by reference
10.7	Credit Agreement dated as of April 24, 2012, among HSN, Inc., as Borrower; Bank of America, N.A., as Administrative Agent and Collateral Agent; JPMorgan Chase Bank, N.A., Wells Fargo Bank, National Association, and Barclays Bank PLC, each as a Syndication Agent; Branch Banking & Trust, Regions Bank, and Union Bank, each as a Documentation Agent; and Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and Barclays Bank PLC, as Joint Lead Arrangers and Joint Book Managers	Exhibit 10.1 to the Company’s Current Report on Form 8-K filed April 25, 2012
10.8	Pledge Agreement dated as of April 24, 2012, by the Credit Parties (as defined in the Credit Agreement dated April 24, 2012) and Bank of America, N.A., as Collateral Agent	Exhibit 10.2 to the Company’s Current Report on Form 8-K filed April 25, 2012
10.9	Credit Agreement among HSN, Inc., as Borrower, Certain Subsidiaries of the Borrower, as Guarantors, The Lenders Party thereto, Bank of America, N.A., as Administrative Agent and Collateral Agent, dated as of July 25, 2008	Exhibit 10.12 to the Company’s Registration Statement on Form S-1 (Registration No. 333-152697) filed August 1, 2008
10.10	Credit Agreement dated as of January 27, 2015 by and among HSN, Inc. and certain of its subsidiaries, Bank of America, N.A., as Administrative Agent and Collateral Agent; JPMorgan Chase Bank, N.A., and Wells Fargo Bank, National Association, each as a Syndication Agent; Fifth Third Bank, Regions Bank, MUFG Union Bank, Branch Banking and Trust Company, BBVA Compass Bank and PNC Bank, National Association, each as a Documentation Agent; and Bank of America Merrill Lynch, J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Joint Bookrunners	Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 28, 2015
10.11	Pledge Agreement dated as of January 27, 2015, by the Credit Parties (as defined in the Credit Agreement dated January 27, 2015) and Bank of America, N.A, as Collateral Agent.	Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 28, 2015
10.12	Employment Agreement between Mindy Grossman and HSN, Inc., dated as of July 29, 2008*	Exhibit 10.5 to the Company’s Registration Statement on Form S-1 (Registration No. 333-152697) filed August 1, 2008
* Reflects management contracts and management and director compensation plans.

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Exhibit No.	Description of Document	Method of Filing
10.13	First Amendment to Employment Agreement between Mindy Grossman and HSN, Inc., dated as of August 5, 2010*	Exhibit 10.1 to the Company’s Current Report on Form 8-K filed August 9, 2010
10.14	HSN, Inc. Amended and Restated 2008 Stock and Annual Incentive Plan*	Exhibit 10.13 to the Company’s Annual Report on Form 10-K filed March 31, 2009
10.15	HSN, Inc. Second Amended and Restated 2008 Stock and Annual Incentive Plan*	Exhibit 10.13 to the Company's Annual Report on Form 10-K filed February 20, 2014
10.16	Amended and Restated Deferred Compensation Plan for Non-Employee Directors*	Exhibit 10.14 to the Company’s Annual Report on Form 10-K filed March 31, 2009
10.17	Form of Stock Appreciation Rights Agreement*	Filed herewith
10.18	Form of Stock Option Agreement*	Exhibit 10.20 to the Company’s Annual Report on Form 10-K filed March 31, 2009
10.19	Form of Restricted Stock Units Agreement*	Filed herewith
10.20	Form of Restricted Stock Units Agreement (for Non-Employee Directors)*	Exhibit 10.22 to the Company’s Annual Report on Form 10-K filed March 31, 2009
10.21	Form of Deferred Restricted Stock Unit Agreement*	Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed November 6, 2013
10.22	Named Executive Officer and EVP Severance Plan*	Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 24, 2009
10.23	Executive Severance Plan*	Exhibit 10.25 to the Company’s Annual Report on Form 10-K filed March 4, 2010
10.24	Form of Performance Cash Award Agreement*	Exhibit 10.21 to the Company's Annual Report on Form 10-K filed February 21, 2013
10.25	Employee Stock Purchase Plan	Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed August 4, 2010
10.26	Form of Deferred Share Unit Agreement*	Exhibit 10.23 to the Company's Annual Report on Form 10-K filed February 23, 2012
10.27	Form of Performance Award Agreement*	Exhibit 10.24 to the Company's Annual Report on Form 10-K filed February 21, 2013
10.28	Form of Market Stock Unit Agreement*	Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed November 6, 2013
10.29	HSN, Inc. Nonqualified Deferred Compensation Plan	Exhibit 10.27 to the Company's Annual Report on Form 10-K filed February 20, 2014
12.1	Computation of Ratio of Earnings to Fixed Charges	Filed herewith
21.1	Subsidiaries of HSN, Inc.	Filed herewith
23.1	Consent of Independent Registered Certified Public Accounting Firm	Filed herewith
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act	Filed herewith
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act	Filed herewith
* Reflects management contracts and management and director compensation plans.

73

Exhibit No	Description of Document	Method of Filing
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith
101	The following financial information from HSNi’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, formatted in XBRL (eXtensible Business Reporting Language) and furnished electronically herewith: (i) Consolidated Statements of Operations for the Years Ended December 31, 2014, 2013, and 2012, (ii) Consolidated Balance Sheets as of December 31, 2014 and 2013, (iii) Consolidated Statements of Shareholders’ Equity, (iv) Consolidated Statements of Cash Flows for the Years Ended December 31, 2014, 2013, and 2012, (v) Notes to the Consolidated Financial Statements, and (vi) financial statement schedule.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	HSN, INC.
Date: February 26, 2015	By:	/S/  Mindy Grossman
		Mindy Grossman, Chief Executive Officer (Principal Executive Officer)

Date: February 26, 2015	By:	/S/  Judy A. Schmeling
		Judy A. Schmeling, Chief Financial Officer and Chief Operating Officer (Principal Financial and Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated as of February 26, 2015.

/S/ Mindy Grossman	Chief Executive Officer and Director     (Principal Executive Officer)
Mindy Grossman
/S/ Judy A. Schmeling	Chief Financial Officer and Chief Operating Officer (Principal Financial and Accounting Officer)
Judy A. Schmeling
/S/ William Costello
William Costello	Director
/S/ James Follo
James Follo	Director
/S/ Stephanie Kugelman
Stephanie Kugelman	Director
/S/ Arthur Martinez
Arthur Martinez	Chairman of the Board of Directors
/S/ Thomas McInerney
Thomas McInerney	Director
/S/ John B. Morse, Jr.
John B. Morse, Jr.	Director
/S/ Matthew Rubel
Matthew Rubel	Director
/S/ Ann Sarnoff
Ann Sarnoff	Director
/S/ Courtnee Ulrich
Courtnee Ulrich	Director

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EXHIBIT INDEX

Exhibit No.	Description of Document
10.17	Form of Stock Appreciation Rights Agreement
10.19	Form of Restricted Stock Unit Agreement
12.1	Computation of Ratio of Earnings to Fixed Charges
21.1	Subsidiaries of HSN, Inc.
23.1	Consent of Independent Registered Certified Public Accounting Firm
31.1	Chief Executive Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Chief Financial Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial information from HSNi’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, formatted in XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) Consolidated Statements of Operations for the Years Ended December 31, 2014, 2013, and 2012, (ii) Consolidated Balance Sheets as of December 31, 2014 and 2013, (iii) Consolidated Statements of Shareholders’ Equity, (iv) Consolidated Statements of Cash Flows for the Years Ended December 31, 2014, 2013, and 2012, (v) Notes to the Consolidated Financial Statements, and (vi) financial statement schedule.

EX-10.17

EXHIBIT 10.17

STOCK APPRECIATION RIGHT AGREEMENT

THIS STOCK APPRECIATION RIGHT AGREEMENT (this “Agreement”), between HSN, Inc., a Delaware corporation (the “Company”), and the Participant set forth in the Grant Summary(the “Grantee”) is made as of the Grant Date set forth in the Grant Summary.

1. Award and Vesting of SARs

(a)Subject to the terms, definitions, and provisions of this Agreement and the Company’s Second Amended and Restated 2008 Stock and Annual Incentive Plan, as amended, (the “Plan”), the Company hereby grants to the Grantee as of the Award Date a stock appreciation right with respect to the total number of shares of common stock, par value $0.01 per share (“Common Stock”), and at the grant price per share set forth in the Grant Summary (the “SARs”). Your Grant Summary, on the Morgan Stanley Smith Barney Benefit Access System or any successor equity administration website or system (the “Grant Summary”) sets forth the Award Date, the number of SARs granted to you by the Company and the grant price for such SARs (among other information), and is hereby incorporated by reference to, and shall be read as part and parcel of, this Agreement. Any defined terms not defined in this Agreement or the Grant Summary shall have the meaning ascribed to it in the Plan.

(b)Subject to the terms and conditions of this Agreement and the provisions of the Plan, the SARs shall vest and no longer be subject to any restriction in accordance with the Vesting Period described in the Grant Summary.

(c)Notwithstanding the provisions of Section 1(b) and except as provided in Section 5 of this Agreement, in the event of termination of the Grantee’s service with the Company during the Vesting Period for any reason, all remaining unvested SARs shall be forfeited by the Grantee and canceled in their entirety effective immediately upon such termination.

(d)Unless earlier terminated pursuant to the terms of this Agreement or the Plan, the SARs will expire on the tenth anniversary of the Award Date.

(e)Nothing in this Agreement shall confer upon the Grantee any right to continue in the employ or service of the Company or any of its affiliates or interfere in any way with the right of the Company or any such Affiliates to terminate the Grantee’s service at any time, with or without cause.

1. Exercise.

(a)The vested portion of the SARs shall be exercisable by delivery to the Company of a written notice stating the number of whole shares of Common Stock in respect of which this SAR is being exercised. The SARs may not be exercised at any one time as to fewer than 100 shares (or such number of shares as to which the SARs are then exercisable if less than 100). Fractional share interests shall be disregarded except they may be accumulated.

(b)Upon exercise of this SAR pursuant to this Section 2, Grantee will receive a payment equal to the difference between the aggregate Fair Market Value of the shares of Common Stock with respect to which this SAR is exercised and determined as of the exercise date and the aggregate Grant price. Payment shall be made, in the sole discretion of the Company, in either cash or shares of Common Stock (either in book-entry form or otherwise), and shall be net of any amounts required to satisfy the Company’s withholding obligations. Any fractional share due to Grantee upon exercise shall be rounded up to the next full share of Common Stock.

3. Non-Transferability of the SARs

During the Vesting Period and until such time as the SARs are ultimately settled as provided in Section 2 above, the SARs shall not be transferable by the Grantee by means of sale, assignment, exchange, encumbrance, pledge, hedge or otherwise.

4.Rights as a Stockholder

Except as otherwise specifically provided in this Agreement or the Plan, until the SARs are exercised and only to the extent the Grantee receives and owns shares of Common Stock, the Grantee shall not be entitled to any rights of a stockholder with respect to the SARs (including the right to vote the shares of Common Stock underlying the SARs and the right to receive dividends).

1. Adjustment in the Event of Change in Stock; Change in Control

(a)In the event of any change in corporate capitalization (including, but not limited to, a change in the number of shares of Common Stock outstanding), such as a stock split or a corporate transaction, such as any merger, consolidation, separation, including a spin-off, or other distribution of stock or property of the Company (including any extraordinary cash or stock dividend), any reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code) or any partial or complete liquidation of the Company, the number of SARs and the shares underlying such SARs shall be equitably adjusted by the Committee (including, in its discretion, providing for other property to be held as restricted property) as it may deem appropriate in its sole discretion. The determination of the Committee regarding any such adjustment will be final and conclusive.

(b)With respect to the awards evidenced by this Agreement, subject to paragraph (e) of Section 10 of the Plan, notwithstanding any provision of the Plan to the contrary, upon Grantee’s Termination of Employment, during the one-year period following a Change in Control, by the Company for other than Cause or Disability or by the Grantee for Good Reason:

(i)    any SARs outstanding as of such date of Termination of Employment which were outstanding as of the date of such Change in Control shall be fully exercisable and vested and shall remain exercisable until the later of (i) the last date on which such SAR would be exercisable in the absence of this Section 5(b) and (ii) and the earlier of (A) the first anniversary of such Change in Control and (B) the expiration date of the SARs.

(ii)    the restrictions and deferral limitations applicable to any SARs shall lapse, and such SAR outstanding as of such date of Termination of Employment which were outstanding as of the date of such Change in Control shall become free of all restrictions and become fully vested and transferable.

6. Payment of Transfer Taxes, Fees and Other Expenses

The Company agrees to pay any and all original issue taxes and stock transfer taxes that may be imposed on the issuance of shares received by a Grantee in connection with the SARs, together with any and all other fees and expenses necessarily incurred by the Company in connection therewith.

7. Other Restrictions

(a)    The SARs shall be subject to the requirement that, if at any time the Committee shall determine that (i) the listing, registration or qualification of the shares of Common Stock subject or related thereto upon any securities exchange or under any state or federal law, or (ii) the consent or approval of any government regulatory body, then in any such event, the award of SARs shall not be effective unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

(b)    The Grantee acknowledges that the Grantee is subject to the Company’s policies regarding compliance with securities laws, including but not limited to its Securities Trading Policy (as in effect from time to time and any successor policies), and, pursuant to these policies, if the Grantee is on the Company’s insider list, the Grantee may be required to obtain pre-clearance from the Company’s General Counsel prior to purchasing or selling any of the Company’s securities, including any shares issued upon vesting of the SARs, and may be prohibited from selling such shares other than during an open trading window. The Grantee further acknowledges that, in its discretion, the Company may prohibit the Grantee from selling such shares even during an open trading window if the Company has concerns over the potential for insider trading.

8. Notices

All notices and other communications under this Agreement shall be in writing and shall be given by overnight courier; registered or certified mail, return receipt requested, postage prepaid; hand delivery to the other party; corporate assigned email; personal address provided to the Company or Agent; or by facsimile addressed as follows:

If to the Grantee: at the address last provided by the Grantee to the Company’s Human Resources Department or the Agent.

If to the Company:        HSN, Inc.

1 HSN Drive

St. Petersburg, FL 33729

Attention:  General Counsel

Facsimile:  (727) 872-1000

or to such other address or facsimile number as any party shall have furnished to the other in writing in accordance with this Section 8. Notices and communications shall be effective upon the earlier of (i) when actually received by the addressee, (ii) four business days if by registered or certified mail, (iii) next business day if sent via overnight delivery, e-mail, facsimile, or electronic delivery. The Grantee consents to electronic delivery of (i) all communications under the Plan or necessary for administration of the Plan and (iii) any documents required to be delivered by the Company under the securities laws.

9. Effect of Agreement

Except as otherwise provided hereunder, this Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company.

10. Laws Applicable to Construction; Consent to Jurisdiction

The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without reference to principles of conflict of laws, as applied to contracts executed in and performed wholly within the State of Delaware. In addition to the terms and conditions set forth in this Agreement and the Grant Summary, the SARs are subject to the terms and conditions of the Plan, which are hereby incorporated by reference.

Any and all disputes arising under or out of this Agreement, including without limitation any issues involving the enforcement or interpretation of any of the provisions of this Agreement, shall be resolved by the commencement of an appropriate action in the state or federal courts located within the State of Florida, which shall be the exclusive jurisdiction for the resolution of any such disputes.  The Grantee hereby agrees and consents to the personal jurisdiction of said courts over the Grantee for purposes of the resolution of any and all such disputes.

11. Severability

The invalidity or enforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

12. Conflicts and Interpretation

In the event of any conflict between this Agreement and the Plan, the Plan shall control. In the event of any ambiguity in this Agreement, or any matters as to which this Agreement is silent, the Plan shall govern including, without limitation, the provisions thereof pursuant to which the Committee has the power, among others, to (i) interpret the Plan, (ii) prescribe, amend and rescind rules and regulations relating to the Plan, and (iii) make all other determinations deemed necessary or advisable for the administration of the Plan.

In the event of any (i) conflict between the Grant Summary (or any information posted on the Morgan Stanley Smith Barney Benefit Access System) and this Agreement, the Plan and/or the books and records of the Company, or (ii) ambiguity in the Grant Summary (or any information posted on the Morgan Stanley Smith Barney Benefit Access System), this Agreement, the Plan and/or the books and records of the Company, as applicable, shall control.

13. Amendment

The Company may modify, amend or waive the terms of the SAR award, prospectively or retroactively, but no such modification, amendment or waiver shall impair the rights of the Grantee without his or her consent, except as required by applicable law, NASDAQ or stock exchange rules, tax rules or accounting rules.  The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.

14. Headings

The headings of paragraphs herein are included solely for convenience of reference and shall not affect the meaning or interpretation of any of the provisions of this Agreement.

15. Counterparts

This Agreement may be executed electronically or in counterparts, which together shall constitute one and the same original.

16.Data Protection

The Grantee authorizes the release from time to time to the Company (and any of its subsidiaries or affiliated companies) and to the Agent (together, the “Relevant Companies”) of any and all personal or professional data that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).  Without limiting the above, Grantee permits his or her employing company to collect, process, register and transfer to the Relevant Companies all Relevant Information (including any professional and personal data that may be useful or necessary for the purposes of the administration of the Plan and/or this Agreement and/or to implement or structure any further grants of equity awards (if any)).  Grantee hereby authorizes the Relevant Information to be transferred to any jurisdiction in which the Company, his or her employing company or the Agent considers appropriate.  Grantee shall have access to, and the right to change, the Relevant Information.  Relevant Information will only be used in accordance with applicable law.

IN WITNESS WHEREOF, as of the date first above written, the Company has caused this Agreement to be executed on its behalf by a duly authorized officer. Your acceptance of the benefits of this Agreement constitutes your acceptance to be bound by its terms.

HSN, INC.

By:

Maria Martinez

Chief Human Resources Officer

EX-10.19

EXHIBIT 10.19

RESTRICTED STOCK UNIT AGREEMENT

THIS RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”), between HSN, Inc., a Delaware corporation (the “Company”), and the Participant set forth in the Grant Summary (the “Grantee”) is made as of the Grant Date set forth in the Grant Summary.

1.Award and Vesting of RSUs

(a)Subject to the terms, definitions and provisions of this Agreement and the Company’s Second Amended and Restated 2008 Stock and Annual Incentive Plan, as amended (the “Plan”), the Company hereby grants to the Grantee the number of restricted stock units set forth in the Grant Summary (the “RSUs”). Your Grant Summary on the Morgan Stanley Smith Barney Benefit Access System or any successor equity administration website or system (the “Grant Summary”) sets forth the number of RSUs granted to you by the Company and the Award Date referred to as the Grant Date in the Award Summary (among other information), and is hereby incorporated by reference to, and shall be read as part and parcel of, this Agreement. Any defined terms not defined in this Agreement or the Grant Summary shall have the meaning ascribed to it in the Plan.

(b)Subject to the terms and conditions of this Agreement and the provisions of the Plan, the RSUs shall vest and no longer be subject to any restriction in accordance with the Vesting Period described in the Grant Summary. 

(c)Notwithstanding the provisions of Section 1(b) and except as provided in Section 5 of this Agreement, in the event of termination of the Grantee’s service with the Company during the Vesting Period for any reason, all remaining unvested RSUs shall be forfeited by the Grantee and canceled in their entirety effective immediately upon such termination.

(d)Nothing in this Agreement shall confer upon the Grantee any right to continue in the employ or service of the Company or any of its affiliates or interfere in any way with the right of the Company or any such Affiliates to terminate the Grantee’s service at any time, with or without cause.

2. Settlement of RSUs

As soon as practicable after any RSUs have vested and are no longer subject to the Vesting Period, such RSUs shall be settled. Subject to Section 14(d) of the Plan (pertaining to the withholding of taxes), for each RSU settled pursuant to this Section 2, the Company shall (i) if the Grantee is employed within the United States, issue (either in book-entry form or otherwise) one share of Common Stock for each RSU vesting at such time and cause to be delivered to the Grantee one or more unlegended, freely-transferable stock certificates in respect of such shares issued upon settlement of the vesting RSUs or (ii) if the Grantee is employed outside the United States, pay, or cause to be paid, to the Grantee an amount of cash equal to the Fair Market Value of one share of Common Stock for each RSU vesting at such time. Notwithstanding the foregoing, the Company shall be entitled to hold the shares or cash issuable upon settlement of RSUs that have vested until the Company or the agent selected by the Company to manage the Plan under which the RSUs have been issued (the “Agent”) shall have received from the Grantee a duly executed Form W-9 or W-8, as applicable.

3. Non-Transferability of the RSUs

During the Vesting Period and until such time as the RSUs are ultimately settled as provided in Section 2 above, the RSUs shall not be transferable by the Grantee by means of sale, assignment, exchange, encumbrance, pledge, hedge or otherwise.

4.Rights as a Stockholder

Except as otherwise specifically provided in this Agreement, the Grantee shall not be entitled to any rights of a stockholder with respect to the RSUs. Notwithstanding the foregoing, if the Company declares and pays dividends on the Common Stock during the Vesting Period, the Grantee will be credited with additional amounts for each RSU equal to the dividend that would have been paid with respect to such RSU if it had been an actual share of Common Stock, which amount shall remain subject to restrictions (and as determined by the Committee may be reinvested in RSUs or may be held in kind as restricted property) and shall vest concurrently with the vesting of the RSUs upon which such dividend equivalent amounts were paid. Notwithstanding

the foregoing, dividends and distributions other than regular quarterly cash dividends, if any, may result in an adjustment pursuant to Section 5.

1. Adjustment in the Event of Change in Stock; Change in Control

(a)In the event of any change in corporate capitalization (including, but not limited to, a change in the number of shares of Common Stock outstanding), such as a stock split or a corporate transaction, such as any merger, consolidation, separation, including a spin-off, or other distribution of stock or property of the Company (including any extraordinary cash or stock dividend), any reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code) or any partial or complete liquidation of the Company, the number of RSUs and the shares underlying such RSUs shall be equitably adjusted by the Committee (including, in its discretion, providing for other property to be held as restricted property) as it may deem appropriate in its sole discretion. The determination of the Committee regarding any such adjustment will be final and conclusive.

(b)With respect to the awards evidenced by this Agreement, subject to paragraph (e) of Section 10 of the Plan, notwithstanding any provision of the Plan to the contrary, upon Grantee’s Termination of Employment, during the one-year period following a Change in Control, by the Company for other than Cause or Disability or by the Grantee for Good Reason:

(i)    any RSUs outstanding as of such date of Termination of Employment which were outstanding as of the date of such Change in Control shall be fully vested and become immediately payable; 

(ii)    the restrictions and deferral limitations applicable to any RSU shall lapse, and such RSU outstanding as of such date of Termination of Employment which were outstanding as of the date of such Change in Control shall become free of all restrictions and become fully vested and transferable; and

(iii)    all RSUs outstanding as of such date of Termination of Employment which were outstanding as of the date of such Change in Control shall be considered to be earned and payable in full, and any restrictions shall lapse and such RSUs shall be settled as promptly as is practicable in the form set forth in this Agreement and the Plan.

6. Payment of Transfer Taxes, Fees and Other Expenses

The Company agrees to pay any and all original issue taxes and stock transfer taxes that may be imposed on the issuance of shares received by a Grantee in connection with the RSUs, together with any and all other fees and expenses necessarily incurred by the Company in connection therewith.

7. Other Restrictions

(a)    The RSUs shall be subject to the requirement that, if at any time the Committee shall determine that (i) the listing, registration or qualification of the shares of Common Stock subject or related thereto upon any securities exchange or under any state or federal law, or (ii) the consent or approval of any government regulatory body, then in any such event, the award of RSUs shall not be effective unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

(b)    The Grantee acknowledges that the Grantee is subject to the Company’s policies regarding compliance with securities laws, including but not limited to its Securities Trading Policy (as in effect from time to time and any successor policies), and, pursuant to these policies, if the Grantee is on the Company’s insider list, the Grantee may be required to obtain pre-clearance from the Company’s General Counsel prior to purchasing or selling any of the Company’s securities, including any shares issued upon vesting of the RSUs, and may be prohibited from selling such shares other than during an open trading window. The Grantee further acknowledges that, in its discretion, the Company may prohibit the Grantee from selling such shares even during an open trading window if the Company has concerns over the potential for insider trading.

8. Notices

All notices and other communications under this Agreement shall be in writing and shall be given by overnight courier; registered or certified mail, return receipt requested, postage prepaid; hand delivery to the other party; corporate assigned email address; personal address provided to the Company or Agent; or by facsimile, addressed as follows:

If to the Grantee: at the address last provided by the Grantee to the Company’s Human Resources Department or the Agent.

If to the Company:            HSN, Inc.

1 HSN Drive

St. Petersburg, FL 33729

Attention:  General Counsel

Facsimile:  (727) 872-1000

or to such other address or facsimile number as any party shall have furnished to the other in writing in accordance with this Section 8. Notice and communications shall be effective upon the earlier of (i) when actually received by the addressee, (ii) four business days if by registered or certified mail, (ii) next business day if sent via overnight delivery, e-mail, facsimile, electronic delivery.  The Grantee consents to electronic delivery of (i) all communications under the Plan or necessary for administration of the Plan and (ii) any documents required to be delivered by the Company under the securities laws.

9. Effect of Agreement

Except as otherwise provided hereunder, this Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company.

10. Laws Applicable to Construction; Consent to Jurisdiction

The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without reference to principles of conflict of laws, as applied to contracts executed in and performed wholly within the State of Delaware. In addition to the terms and conditions set forth in this Agreement and the Grant Summary, the RSUs are subject to the terms and conditions of the Plan, which are hereby incorporated by reference.

Any and all disputes arising under or out of this Agreement, including without limitation any issues involving the enforcement or interpretation of any of the provisions of this Agreement, shall be resolved by the commencement of an appropriate action in the state or federal courts located within the State of Florida, which shall be the exclusive jurisdiction for the resolution of any such disputes. The Grantee hereby agrees and consents to the personal jurisdiction of said courts over the Grantee for purposes of the resolution of any and all such disputes.

11. Severability

The invalidity or enforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

12. Conflicts and Interpretation

In the event of any conflict between this Agreement and the Plan, the Plan shall control. In the event of any ambiguity in this Agreement, or any matters as to which this Agreement is silent, the Plan shall govern including, without limitation, the provisions thereof pursuant to which the Committee has the power, among others, to (i) interpret the Plan, (ii) prescribe, amend and rescind rules and regulations relating to the Plan, and (iii) make all other determinations deemed necessary or advisable for the administration of the Plan.

In the event of any (i) conflict between the Grant Summary (or any information posted on the Morgan Stanley Smith Barney Benefit Access System) and this Agreement, the Plan and/or the books and records of the Company, or (ii) ambiguity in the Grant Summary (or any information posted on the Morgan Stanley Smith Barney Benefit Access System), this Agreement, the Plan and/or the books and records of the Company, as applicable, shall control.

13. Amendment

The Company may modify, amend or waive the terms of the RSU award, prospectively or retroactively, but no such modification, amendment or waiver shall impair the rights of the Grantee without his or her consent, except as required by applicable law, NASDAQ or stock exchange rules, tax rules or accounting rules.  The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.

14. Headings

The headings of paragraphs herein are included solely for convenience of reference and shall not affect the meaning or interpretation of any of the provisions of this Agreement.

15. Counterparts

This Agreement may be executed in counterparts, which together shall constitute one and the same original.

16.Data Protection

The Grantee authorizes the release from time to time to the Company (and any of its subsidiaries or affiliated companies) and to the Agent (together, the “Relevant Companies”) of any and all personal or professional data that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).  Without limiting the above, Grantee permits his or her employing company to collect, process, register and transfer to the Relevant Companies all Relevant Information (including any professional and personal data that may be useful or necessary for the purposes of the administration of the Plan and/or this Agreement and/or to implement or structure any further grants of equity awards (if any)).  Grantee hereby authorizes the Relevant Information to be transferred to any jurisdiction in which the Company, his or her employing company or the Agent considers appropriate.  Grantee shall have access to, and the right to change, the Relevant Information.  Relevant Information will only be used in accordance with applicable law.

IN WITNESS WHEREOF, as of the date first above written, the Company has caused this Agreement to be executed on its behalf by a duly authorized officer. Your acceptance of the benefits of this Agreement constitutes your acceptance to be bound by its terms.

.

HSN, INC.

By:

Maria Martinez

Chief Human Resources Officer

EX-12.1

EXHIBIT 12.1

HSN, Inc.
Computation of Ratio of Earnings to Fixed Charges
		Year Ended December 31,
		2014		2013		2012		2011		2010
		(unaudited)
		(In thousands, except ratios)
Income from continuing operations before income taxes		$	277,527	$	276,141	$	219,870	$	207,758	$	166,618
Fixed charges:
Interest expense (a)		7,266		6,718		20,811		31,963		33,124
Estimated interest portion of rental expense		8,269		7,614		7,301		6,860		6,788
	Total fixed charges	15,535		14,332		28,112		38,823		39,912
	Income from continuing operations before income taxes and fixed charges	$	293,062	$	290,473	$	247,982	$	246,581	$	206,530
Ratio of earnings to fixed charges		18.9		20.3		8.8		6.4		5.2
Note:	The Ratio of Earnings to Fixed Charges should be read in conjunction with the Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K.
(a)	Includes interest on debt and amortization of debt issuance costs. Excludes interest income and interest associated with unrecognized tax benefits, which is recorded within income tax expense.

EX-21.1

EXHIBIT 21.1

HSN, Inc. Subsidiaries

As of December 31, 2014

Name	Jurisdiction of Organization
AST Sub, Inc.	DE
Ballard Designs, Inc.	GA
Chasing Fireflies, LLC	DE
Cinmar, LLC	DE
Contract Décor, Inc.	DE
Cornerstone Brands, Inc.	DE
Cornerstone Services, Inc.	DE
Frontgate Marketing, Inc.	DE
Garnet Hill, Inc.	NH
H.O.T. Networks Holdings (Delaware) LLC	DE
Home Shopping Network En Espanol, L.P.	DE
Home Shopping Network En Espanol, L.L.C.	DE
HSN Catalog Services, Inc.	DE
HSN Fulfillment LLC	DE
HSN Holding LLC	DE
HSN Improvements LLC	DE
HSN Interactive LLC	DE
HSNi, LLC	DE
HSN of Nevada LLC	DE
HSN Realty LLC	DE
Ingenious Designs LLC	DE
NLG Merger Corp.	DE
S&N Operations, LLC	DE
The Cornertone Brands Group, Inc.	DE
The Cornerstone Holdings Group, Inc.	DE
TTA Operations, Inc.	DE
TravelSmith Outfitters, Inc.	CA
Ventana Television Holdings, Inc.	DE
Ventana Television, Inc.	DE
H.O.T. Home Order Television Belgium S.A.	Belgium
Home Shopping Espanol (Mexico) S. De. R.L. De. CV	Mexico
Home Shopping Espanol Servicios (Mexico) S. De. R.L. De. CV	Mexico

EX-23.1

EXHIBIT 23.1

Consent of Independent Registered Certified Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Post Effective Amendment No. 4 to Form S-1 on Form S-3 No. 333-152697) of HSN, Inc. and subsidiaries (HSN, Inc.) and

(2) Registration Statement (Form S-8 No. 333-168570) pertaining to the Employee Stock Purchase Plan of HSN, Inc.;

of our reports dated February 26, 2015, with respect to the consolidated financial statements and schedule of HSN, Inc., and the effectiveness of internal control over financial reporting of HSN, Inc., included in this Annual Report (Form 10-K) of HSN, Inc. for the year ended December 31, 2014.

/s/ Ernst & Young LLP

Tampa, Florida

February 26, 2015

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Mindy Grossman, certify that:

1. I have reviewed this Annual Report on Form 10-K of HSN, Inc.;

2. Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Annual Report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: February 26, 2015 By: /s/ Mindy Grossman

Mindy Grossman

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Judy A. Schmeling, certify that:

1. I have reviewed this Annual Report on Form 10-K of HSN, Inc.;

2. Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Annual Report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: February 26, 2015 By: /s/ Judy A. Schmeling

Judy A. Schmeling

Chief Financial Officer and Chief Operating Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Mindy Grossman, certify pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1)    the Annual Report of HSN, Inc. on Form 10-K for the fiscal year ended December 31, 2014 of HSN, Inc. (the “Report”), which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HSN, Inc.

Date: February 26, 2015 By: /s/ Mindy Grossman

Mindy Grossman

Chief Executive Officer

EX-32.2

EXHIBIT 32.2

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Judy A. Schmeling, certify pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1)    the Annual Report of HSN, Inc. on Form 10-K for the fiscal year ended December 31, 2014 of HSN, Inc. (the “Report”), which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HSN, Inc.

Date: February 26, 2015 By:      /s/ Judy A. Schmeling

Judy A. Schmeling

Chief Financial Officer and Chief Operating Officer

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Basic And Diluted Earnings Per Share

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

	Year Ended December 31,
	2014		2013		2012
Net income
Continuing operations	$	172,984	$	178,449	$	136,497
Discontinued operations	—		—		(5,822		)
Net income	$	172,984	$	178,449	$	130,675
Weighted average number of shares outstanding:
Basic	52,736		53,640		56,314
Dilutive effect of stock-based compensation awards	897		1,217		1,642
Diluted	53,633		54,857		57,956
Net income (loss) per share - basic:
Continuing operations	$	3.28	$	3.33	$	2.42
Discontinued operations	—		—		(0.10		)
Net income	$	3.28	$	3.33	$	2.32
Net income (loss) per share - diluted:
Continuing operations	$	3.23	$	3.25	$	2.36
Discontinued operations	—		—		(0.11		)
Net income	$	3.23	$	3.25	$	2.25
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	763		432		1,276

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Intangible Assets And Goodwill (Intangible Assets With Definite Lives) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Cost	$ 3,859	$ 3,800
Accumulated Amortization	(3,705)	(3,149)
Net	$ 154	$ 651
Weighted Average Amortization Life (Years)	6 years 1 month 0 days	1 year 1 month 24 days

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Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2014		Dec. 31, 2013	Dec. 31, 2012
Summary Of Significant Accounting Policies [Line Items]
Estimated return rates		16.30%		17.00%	17.80%
Breakage income from merchandise credits	$ 5,000,000	$ 4,962,000	[1],[2]
Collection period of receivables from customer, days		30 days
Accounts receivable, net	317,785,000	317,785,000		265,115,000
General and Administrative Costs in Inventory, Amount Remaining	6,000,000	6,000,000		6,000,000
General and administrative cost in inventory	24,000,000	24,000,000		23,900,000	24,300,000
Capitalized software costs, net of accumulated amortization	37,900,000	37,900,000		37,300,000
Amortization expense related to the capitalized software costs		18,300,000		15,100,000	12,700,000
Capitalized advertising costs	18,000,000	18,000,000		18,800,000
Advertising expense		279,600,000		268,000,000	245,000,000
Percentage of likeliness of income tax being realized		50.00%
Private Label Credit Card Sales, percent of sales		31.00%		28.00%	27.00%
private label credit card income		16,500,000		12,800,000	11,400,000
Unmailed Catalogs [Member]
Summary Of Significant Accounting Policies [Line Items]
Capitalized advertising costs	$ 9,600,000	$ 9,600,000		$ 13,000,000
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of interest-free monthly payments		2 months
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of interest-free monthly payments		6 months
Maximum [Member] | Capitalized Software [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		5 years

[1] (b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

[2] (a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

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Stock-Based Awards (Summary Of Status Of Nonvested RSUs) (Details) (Restricted Stock Units (RSUs) [Member], USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested RSUs, beginning balance (in shares)	623,709
Granted, RSUs (in shares)	238,620
Vested, RSUs (in shares)	(191,106)
Forfeited, RSUs (in shares)	(69,644)
Nonvested RSUs, ending balance (in shares)	601,579	623,709
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested, beginning balance weighted average grant date fair value (in usd per share)	$ 40.25
Granted, weighted average grant date fair value (in usd per share)	$ 55.06	$ 58.83	$ 36.51
Vested, weighted average grant date fair value (in usd per share)	$ 29.18
Forfeited, weighted average grant date fair value (in usd per share)	$ 47.62
Nonvested, ending balance weighted average grant date fair value (in usd per share)	$ 48.88	$ 40.25

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Intangible Assets And Goodwill Intangible Assets And Goodwill (Balance of Goodwill by Reporting Unit) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Goodwill [Line Items]
Gross Balance		$ 2,894,058	$ 2,894,058
Accumulated Impairment		(2,884,200)	(2,884,200)
Goodwill [Roll Forward]
Beginning Balance	9,858	9,858
Additions	0	0
Impairment	0	0
Ending Balance	9,858	9,858
HSN [Member]
Goodwill [Line Items]
Gross Balance		2,391,594	2,391,594
Accumulated Impairment		(2,391,594)	(2,391,594)
Goodwill [Roll Forward]
Beginning Balance	0	0
Additions	0	0
Impairment	0	0
Ending Balance	0	0
Cornerstone [Member]
Goodwill [Line Items]
Gross Balance		502,464	502,464
Accumulated Impairment		(492,606)	(492,606)
Goodwill [Roll Forward]
Beginning Balance	9,858	9,858
Additions	0	0
Impairment	0	0
Ending Balance	$ 9,858	$ 9,858

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Income Taxes (Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of Unrecognized Tax Benefits, Excluding Interest [Roll Forward]
Balance at beginning of year	$ 910	$ 682	$ 664
Additions based on tax positions related to the current year	525	417	0
Additions for tax positions of prior years	576	0	18
Reductions for tax positions of prior years	0	189	0
Balance at end of year	$ 2,011	$ 910	$ 682

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Quarterly Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Data [Abstract]

Schedule Of Quarterly Results

	Quarter Ended
	March 31,			June 30,		September 30,		December 31,
	(a)					(b)		(c) (d)
	(In thousands, except per share data)
Year Ended December 31, 2014
Net sales	$	777,420		$	855,204	$	837,477	$	1,117,894
Gross profit	275,774			313,135		302,415		381,737
Operating income	41,868			67,367		65,968		109,406
Income from continuing operations	24,182			40,940		39,531		68,331
Loss from discontinued operations, net of tax	—			—		—		—
Net income	24,182			40,940		39,531		68,331
Income from continuing operations per share:
Basic	$	0.45		$	0.77	$	0.75	$	1.30
Diluted	$	0.45		$	0.76	$	0.74	$	1.28
Net income per share:
Basic	$	0.45		$	0.77	$	0.75	$	1.30
Diluted	$	0.45		$	0.76	$	0.74	$	1.28
Dividends declared per common share	$	0.25		$	0.25	$	0.25	$	0.35
Year Ended December 31, 2013
Net sales	$	772,651		$	812,606	$	798,890	$	1,019,835
Gross profit	280,147			308,777		288,590		352,300
Operating income	52,518			71,299		61,085		97,752
Income from continuing operations	31,553			43,271		42,052		61,573
(Loss) income from discontinued operations, net of tax	(9		)	9		—		—
Net income	31,544			43,280		42,052		61,573
Income from continuing operations per share:
Basic	$	0.58		$	0.81	$	0.79	$	1.16
Diluted	$	0.56		$	0.79	$	0.77	$	1.14
Net income per share:
Basic	$	0.58		$	0.81	$	0.79	$	1.16
Diluted	$	0.56		$	0.79	$	0.77	$	1.14
Dividends declared per common share	$	0.18		$	0.18	$	0.18	$	0.25

(a) The first quarter of 2014 includes a $3.1 million settlement with the Consumer Product Safety Commission.

(b) The third quarter of 2013 includes discrete tax benefits of $3.7 million which increased diluted earnings per share by $0.07.

(c) The fourth quarter of 2013 includes a $3.6 million reduction to a previously recorded contingent consideration obligation and a $3.0 million impairment charge of intangible assets related to a 2012 acquisition resulting in a net expense reduction of $0.6 million, or $1.7 million net of taxes. These fair value adjustments increased diluted earnings per share by $0.03.

(d) The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share by $0.06.

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Intangible Assets And Goodwill (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Balance Of Intangible Assets, Net

The total balance of HSNi's intangible assets, net, is as follows (in thousands):

	December 31,
	2014		2013
Intangible assets with indefinite lives	$	261,808	$	261,809
Intangible assets with definite lives, net	154		651
Total intangible assets, net	$	261,962	$	262,460

Intangible Assets With Definite Lives

At December 31, 2014 and 2013, the following is information on intangible assets with definite lives (in thousands):

	Cost		Accumulated Amortization			Net		Weighted Average Amortization Life (Years)
As of December 31, 2014	$	3,859	$	(3,705	)	$	154	6.1
As of December 31, 2013	$	3,800	$	(3,149	)	$	651	1.1

Balance of Goodwill by Reporting Unit

The following tables present the balance of goodwill by reporting unit, including changes in the carrying amount of goodwill, for the years ended December 31, 2014 and 2013 (in thousands):

	Gross Balance as of January 1, 2014		Accumulated Impairment			Net Balance as of January 1, 2014		Additions		Impairment		Net Balance as of December 31, 2014
HSN	$	2,391,594	$	(2,391,594	)	$	—	$	—	$	—	$	—
Cornerstone	502,464		(492,606		)	9,858		—		—		9,858
Total	$	2,894,058	$	(2,884,200	)	$	9,858	$	—	$	—	$	9,858
	Gross Balance as of January 1, 2013		Accumulated Impairment			Net Balance as of January 1, 2013		Additions		Impairment		Net Balance as of December 31, 2013
HSN	$	2,391,594	$	(2,391,594	)	$	—	$	—	$	—	$	—
Cornerstone	502,464		(492,606		)	9,858		—		—		9,858
Total	$	2,894,058	$	(2,884,200	)	$	9,858	$	—	$	—	$	9,858

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Commitments And Contingencies (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Commitments And Contingencies [Abstract]
Contingency reserve	$ 0
Expenses charged to operations	$ 25.1	$ 23.1	$ 22.1

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Stock-Based Awards (Summary Of Information About Stock Options And SARs Outstanding And Exercisable) (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding at December 31, 2013	2,296,680
Number Exercisable at December 31, 2013	1,598,089
$0.00 to $9.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit	$ 0.00
Range of exercise prices, upper limit	$ 9.99
Number Outstanding at December 31, 2013	96,094
Weighted Average Exercise Price	$ 5.65
Weighted Average Remaining Contractual Term in Years	4 years
Number Exercisable at December 31, 2013	96,094
Weighted Average Exercise Price	$ 5.65
$10.00 to $19.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit	$ 10.00
Range of exercise prices, upper limit	$ 19.99
Number Outstanding at December 31, 2013	136,836
Weighted Average Exercise Price	$ 17.74
Weighted Average Remaining Contractual Term in Years	3 years 8 months
Number Exercisable at December 31, 2013	136,836
Weighted Average Exercise Price	$ 17.74
$20.00 to $29.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit	$ 20.00
Range of exercise prices, upper limit	$ 29.99
Number Outstanding at December 31, 2013	57,320
Weighted Average Exercise Price	$ 29.72
Weighted Average Remaining Contractual Term in Years	6 years 1 month
Number Exercisable at December 31, 2013	57,320
Weighted Average Exercise Price	$ 29.72
$30.00 to $39.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit	$ 30.00
Range of exercise prices, upper limit	$ 39.99
Number Outstanding at December 31, 2013	959,121
Weighted Average Exercise Price	$ 34.92
Weighted Average Remaining Contractual Term in Years	3 years 11 months
Number Exercisable at December 31, 2013	848,201
Weighted Average Exercise Price	$ 34.82
$40.00 to $49.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit	$ 40.00
Range of exercise prices, upper limit	$ 49.99
Number Outstanding at December 31, 2013	370,555
Weighted Average Exercise Price	$ 44.71
Weighted Average Remaining Contractual Term in Years	3 years 7 months
Number Exercisable at December 31, 2013	370,555
Weighted Average Exercise Price	$ 44.71
$50.00 to $59.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit	$ 50.00
Range of exercise prices, upper limit	$ 59.99
Number Outstanding at December 31, 2013	676,754
Weighted Average Exercise Price	$ 56.72
Weighted Average Remaining Contractual Term in Years	8 years 8 months
Number Exercisable at December 31, 2013	89,083
Weighted Average Exercise Price	$ 59.19

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Retirement And Savings Plan (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Compensation and Retirement Disclosure [Abstract]
Percentage of employee contribution	50.00%
Contribution by employer, per dollar	$ 0.50	$ 0.50	$ 0.25
Percentage of plan participant's deferrals	6.00%	6.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount	4,600,000	4,600,000	2,000,000
Cash Surrender Value of Life Insurance	500,000
Deferred Compensation Liability, Current and Noncurrent	$ 600,000

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Accrued Expenses And Other Current Liabilities (Summary Of Accrued Expenses And Other Current Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accrued Liabilities, Current [Abstract]
Accrued sales returns	$ 40,789	$ 40,072
Accrued cable and satellite distribution fees	41,375	30,452
Accrued freight and fulfillment expenses	35,225	32,646
Accrued compensation and benefits	40,327	36,567
Other accrued expenses and current liabilities	83,358	68,247
Total accrued expenses and other current liabilities	$ 241,074	$ 207,984

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Income Taxes (Deferred Tax Assets And Deferred Tax Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Deferred tax assets:
Provision for accrued expenses	$ 34,987	$ 33,647
Inventories	13,969	13,125
Stock-based compensation	12,072	10,888
Net operating losses	1,705	1,531
Other	4,098	4,078
Total deferred tax assets	66,831	63,269
Less valuation allowance	(1,577)	(1,495)
Net deferred tax assets	65,254	61,774
Deferred tax liabilities:
Intangible and other assets	(92,267)	(91,018)
Prepaid expenses	(12,890)	(13,574)
Property and equipment	(16,216)	(15,455)
Total deferred tax liabilities	(121,373)	(120,047)
Net deferred tax liability	$ (56,119)	$ (58,273)

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Discontinued Operations Discontinued Operations Summary (Details) (USD $)	3 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Discontinued Operations and Disposal Groups [Abstract]
Net sales		$ 0	$ 0	$ 40,154,000
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax		0	0	(9,370,000)
Discontinued Operation, Tax Effect of Discontinued Operation		0	0	(3,548,000)
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest		0	0	(5,822,000)
Loss on sale	$ 6,000,000

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Commitments And Contingencies (Funding Commitments By Third Parties Or Contingent Events) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Recorded Unconditional Purchase Obligation [Line Items]
Total Amounts Committed	$ 116,101
Less Than 1 Year	93,157
1 - 3 Years	15,134
3 - 5 Years	7,810
More Than 5 Years	0
Letters Of Credit And Surety Bonds [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Total Amounts Committed	14,253
Less Than 1 Year	14,193
1 - 3 Years	60
3 - 5 Years	0
More Than 5 Years	0
Purchase Obligations [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Total Amounts Committed	101,848
Less Than 1 Year	78,964
1 - 3 Years	15,074
3 - 5 Years	7,810
More Than 5 Years	$ 0

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Acquisition Acquisition (Details) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Apr. 02, 2012
Business Combinations [Abstract]
Purchase price, cash paid		$ 0	$ 0	$ 22,875,000
Contingent consideration					6,500,000
Inventory and other assets					8,600,000
Liabilities assumed					2,600,000
Identifiable intangible assets excluding goodwill					13,500,000
Goodwill					9,900,000
Fair value adjustment to contingent consideration obligation		1,000,000	3,600,000
Goodwill and Intangible Asset Impairment	$ 3,000,000

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Income Taxes (Reconciliation Of Income Tax Provision) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Income Tax Expense (Benefit), Continuing Operations [Abstract]
Income tax provision at the federal statutory rate of 35%	$ (97,135)		$ (96,649)		$ (76,955)
State income taxes, net of effect of federal tax benefit	(6,306)		(6,293)		(5,327)
Other, net	(1,102)		5,250		(1,091)
Income tax provision	$ (104,543)	[1],[2]	$ (97,692)	[3]	$ (83,373)	[4]
Federal statutory rate	35.00%		35.00%		35.00%

[1] (b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

[2] (a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

[3] (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

[4] (a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

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Stock-Based Awards (Summary Of Status Of Outstanding Stock Options And SARs) (Details) (Stock Options And Stock Appreciation Rights [Member], USD $)	12 Months Ended
	Dec. 31, 2014
Stock Options And Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning balance (in shares)	2,580,889
Granted (in shares)	423,579
Exercised (in shares)	(650,740)
Forfeited (in shares)	(39,528)
Expired (in shares)	(17,520)
Outstanding, ending balance (in shares)	2,296,680	[1]
Vested and expected to vest at December 31, 2013 (in shares)	2,223,860
Exercisable at December 31, 2013 (in shares)	1,598,089
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at January 1, 2013, weighted average exercise price (in usd per share)	$ 34.15
Granted, weighted average exercise price (in usd per share)	$ 55.05
Exercised, weighted average exercise price (in usd per share)	$ 24.34
Forfeited, weighted average exercise price (in usd per share)	$ 54.70
Expired, weighted average exercise price (in usd per share)	$ 17.63
Outstanding at December 31, 2013, weighted average exercise price (in usd per share)	$ 40.54	[1]
Vested and expected to vest at December 31, 2013, weighted average exercise price (in usd per share)	$ 40.04
Exercisable at December 31, 2013, weighted average exercise price (in usd per share)	$ 35.07
Outstanding at December 31, 2013, Weighted Average Remaining Contractual Term	5 years 4 months
Vested and expected to vest at December 31, 2013, Weighted Average Remaining Contractual Term	5 years 2 months
Exercisable at December 31, 2013, Weighted Average Remaining Contractual Term	3 years 11 months
Outstanding at December 31, 2013, Aggregate Intrinsic Value	$ 81,429,314	[1]
Vested and expected to vest at December 31, 2013, Aggregate Intrinsic Value	79,976,327
Exercisable at December 31, 2013, Aggregate Intrinsic Value	$ 65,406,938
Stock options held by employees of spincos	300,000

[1] (1)Approximately 0.3 million stock options outstanding as of December 31, 2014 were held by employees of the other Spincos.

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Discontinued Operations (Note)

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

In May 2012 and July 2012, substantially all of the assets and certain liabilities of Smith+Noble, a Cornerstone brand specializing in window treatments, and The Territory Ahead, a Cornerstone brand specializing in casual apparel for men and women, were sold for $5.5 million and $1.1 million, respectively. The results of operations for Smith+Noble and The Territory Ahead are presented separately as “Loss from discontinued operations, net of tax” in the consolidated statements of operations for all periods presented, and the cash flows are presented separately as discontinued operations in the consolidated statements of cash flows for all periods presented. Cornerstone recorded pre-tax losses of $6.0 million on the sales, including related impairment charges, in the second quarter of 2012, which is included in “Loss from discontinued operations, net of tax” in the accompanying consolidated statements of operations.

The following table reflects the results of Smith+Noble and The Territory Ahead that are reported as discontinued operations for all periods presented (in thousands):

	Year Ended December 31,
	2014		2013		2012
Net sales	$	—	$	—	$	40,154
Loss from discontinued operations (including loss on sale of $6.0 million recognized in the second quarter of 2012)	$	—	$	—	$	(9,370	)
Income tax benefit	—		—		3,548
Loss from discontinued operations, net of tax	$	—	$	—	$	(5,822	)

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Summary Of Significant Accounting Policies (Depreciation Period Of Property Plant And Equipment) (Details)	12 Months Ended
	Dec. 31, 2014
Minimum [Member] | Computer and broadcast equipment and capitalized software
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Minimum [Member] | Buildings, leasehold improvements and land improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Minimum [Member] | Furniture and other equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years
Maximum [Member] | Computer and broadcast equipment and capitalized software
Property, Plant and Equipment [Line Items]
Estimated useful life	6 years
Maximum [Member] | Buildings, leasehold improvements and land improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	40 years
Maximum [Member] | Furniture and other equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years

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Commitments And Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Commitments And Contingencies [Abstract]

Future Minimum Payments Under Operating Lease Agreements

Future minimum payments under operating lease agreements are as follows (in thousands):

Years Ending December 31,
2015	$	26,690
2016	23,797
2017	19,825
2018	16,337
2019	12,180
Thereafter	4,850
Total	$	103,679

Funding Commitments By Third Parties Or Contingent Events

HSNi also has funding commitments that could potentially require its performance in the event of demands by third parties or contingent events, as follows (in thousands):

	Amount of Commitments Expiration Per Period
	Total Amounts Committed		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
Letters of credit and surety bonds	$	14,253	$	14,193	$	60	$	—	$	—
Purchase obligations	101,848		78,964		15,074		7,810		—
Total commercial commitments	$	116,101	$	93,157	$	15,134	$	7,810	$	—

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Income Taxes (Components Of Provision For Income Taxes) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Current income tax provision:
Federal	$ (96,269)		$ (81,521)		$ (76,992)
State	(10,289)		(9,990)		(8,904)
Current income tax provision	(106,558)		(91,511)		(85,896)
Federal	1,468		(6,489)		1,814
State	547		308		709
Deferred income tax (provision) benefit	2,015		(6,181)		2,523
Income tax provision	$ (104,543)	[1],[2]	$ (97,692)	[3]	$ (83,373)	[4]

[1] (b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

[2] (a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

[3] (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

[4] (a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2014

Long-term Debt, Unclassified [Abstract]

Schedule Of Long-Term Debt

	December 31,
	2014			2013
Secured credit agreement expiring April 24, 2017:
Term loan	$	228,126		$	240,625
Revolving credit facility	—			—
Total long-term debt	228,126			240,625
Less: current maturities	(17,188		)	(12,500		)
Long-term debt, less current maturities	$	210,938		$	228,125

Aggregate Contractual Maturities Of Long-Term Debt

Aggregate contractual maturities of long-term debt are as follows (in thousands):

Years Ending December 31,
2015	$	17,188
2016	18,750
2017	192,188
	$	228,126

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Intangible Assets And Goodwill (Narrative 2) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of definite-lived intangible assets	$ 0.6	$ 1.4	$ 1.8

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Earnings Per Share (Basic And Diluted Earnings Per Share) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 31, 2014		Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014		Dec. 31, 2013		Sep. 30, 2013		Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Net income
Continuing operations	$ 68,331	[1]	$ 39,531	$ 40,940	$ 24,182	[2]	$ 61,573	[3]	$ 42,052	[4]	$ 43,271	$ 31,553	$ 172,984		$ 178,449		$ 136,497	[5]
Discontinued operations	0	[1]	0	0	0	[2]	0	[3]	0	[4]	(9)	9	0		0		5,822
Net income	$ 68,331	[1]	$ 39,531	$ 40,940	$ 24,182	[2]	$ 61,573	[3]	$ 42,052	[4]	$ 43,280	$ 31,544	$ 172,984	[6],[7]	$ 178,449	[8]	$ 130,675	[5]
Weighted average number of shares outstanding:
Basic (shares)													52,736		53,640		56,314
Dilutive effect of stock-based compensation awards (shares)													897		1,217		1,642
Diluted (shares)													53,633		54,857		57,956
Net income (loss) per share - basic:
Continuing operations (usd per share)	$ 1.30	[1]	$ 0.75	$ 0.77	$ 0.45	[2]	$ 1.16	[3]	$ 0.79	[4]	$ 0.81	$ 0.58	$ 3.28		$ 3.33		$ 2.42
Discontinued operations (usd per share)													$ 0.00		$ 0.00		$ (0.10)
Net income (usd per share)	$ 1.30	[1]	$ 0.75	$ 0.77	$ 0.45	[2]	$ 1.16	[3]	$ 0.79	[4]	$ 0.81	$ 0.58	$ 3.28		$ 3.33		$ 2.32
Net income (loss) per share - diluted:
Continuing operations (usd per share)	$ 1.28	[1]	$ 0.74	$ 0.76	$ 0.45	[2]	$ 1.14	[3]	$ 0.77	[4]	$ 0.79	$ 0.56	$ 3.23		$ 3.25		$ 2.36
Discontinued operations (usd per share)													$ 0.00		$ 0.00		$ (0.11)
Net income (usd per share)	$ 1.28	[1]	$ 0.74	$ 0.76	$ 0.45	[2]	$ 1.14	[3]	$ 0.77	[4]	$ 0.79	$ 0.56	$ 3.23		$ 3.25		$ 2.25
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													763		432		1,276

[1] (d)The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share by $0.06.

[2] (a)The first quarter of 2014 includes a $3.1 million settlement with the Consumer Product Safety Commission.

[3] (c)The fourth quarter of 2013 includes a $3.6 million reduction to a previously recorded contingent consideration obligation and a $3.0 million impairment charge of intangible assets related to a 2012 acquisition resulting in a net expense reduction of $0.6 million, or $1.7 million net of taxes. These fair value adjustments increased diluted earnings per share by $0.03.

[4] (b)The third quarter of 2013 includes discrete tax benefits of $3.7 million which increased diluted earnings per share by $0.07.

[5] (a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

[6] (b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

[7] (a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

[8] (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

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Long-Term Debt (Schedule Of Long-Term Debt) (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Apr. 24, 2012
Debt Instrument [Line Items]
Secured debt	$ 228,126,000	$ 240,625,000
Total long-term debt	228,126,000	240,625,000
Less: current maturities	(17,188,000)	(12,500,000)
Long-term debt, net of current maturities	210,938,000	228,125,000
Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Secured debt			600,000,000
Revolving Credit Facility [Member] | Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Secured debt	0	0	350,000,000
Term Loan [Member] | Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Secured debt	228,126,000	240,625,000	250,000,000
Total long-term debt			$ 250,000,000

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Valuation And Qualifying Accounts Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2014

Valuation and Qualifying Accounts Disclosure [Line Items]

Schedule of Valuation and Qualifying Accounts Disclosure

Description	Balance at Beginning of Period		Charges to Earnings		Charges to Other Accounts			Deductions				Balance at End of Period
2014
Allowance for doubtful accounts	$	16,863	$	23,986	$	1,874		$	(23,899	)	(1)	$	18,824
Sales return accrual	40,072		655,304		—			(654,587		)		40,789
Deferred tax valuation allowance	1,495		82		—			—				1,577
2013
Allowance for doubtful accounts	$	14,537	$	23,414	$	13		$	(21,101	)	(1)	$	16,863
Sales return accrual	40,554		648,381		—			(648,863		)		40,072
Deferred tax valuation allowance	5,293		262		(4,060		)	—				1,495
2012
Allowance for doubtful accounts	$	13,127	$	24,186	$	(137	)	$	(22,639	)	(1)	$	14,537
Sales return accrual	39,563		658,394		205			(657,608		)		40,554
Deferred tax valuation allowance	14,274		23		(9,004		)	—				5,293

(1) Write-off of uncollectible accounts receivable

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Organization (Note)

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

ORGANIZATION

Company Overview

HSN, Inc. (“HSNi”) is an interactive multi-channel retailer that markets and sells a wide range of third party and proprietary merchandise directly to consumers through various platforms including (i) television home shopping programming broadcast on the HSN television networks; (ii) catalogs, consisting primarily of the Cornerstone portfolio of leading print catalogs which includes, Ballard Designs, Chasing Fireflies, Frontgate, Garnet Hill, Grandin Road, Improvements and TravelSmith; (iii) websites, which consist primarily of HSN.com and the seven branded websites operated by Cornerstone; (iv) mobile devices; and (v) retail and outlet stores. HSNi’s television home shopping business, related digital sales and outlet stores are referred to herein as “HSN” and all catalog operations, including related digital sales and stores, are collectively referred to herein as “Cornerstone.”

HSN offerings primarily consist of jewelry, fashion (apparel & accessories), beauty & health, and home & other (including household, home design, electronics and culinary). Merchandise offered by Cornerstone primarily consists of home furnishings (including indoor/outdoor furniture, home décor, tabletop, textiles and other home related goods) and apparel & accessories.

Basis of Presentation

HSNi was incorporated in Delaware in May 2008 in connection with the spin-off of several businesses previously owned by IAC/InterActiveCorp ("IAC"). The spin-off from IAC occurred August 20, 2008 concurrent with the spin-offs from IAC of Interval Leisure Group, Inc., Ticketmaster Entertainment, Inc. (now a wholly-owned subsidiary of Live Nation Entertainment, Inc.), and Tree.com, Inc. Throughout these financial statements, the separation transaction is referred to as the “Spin-off” and each of these companies as “Spincos.” In connection with the Spin-off, HSNi's shares began trading on the NASDAQ Global Select Market under the symbol “HSNI.”

The consolidated financial statements include the accounts of HSN, Inc. and its subsidiaries. Intercompany accounts and transactions have been eliminated. The operating results of Smith+Noble and The Territory Ahead are presented as discontinued operations in the consolidated statements of operations and the consolidated statements of cash flows for all periods presented. See Note 17 for further discussion of discontinued operations.

Recent Accounting Developments

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). It outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that revenue is recognized when a customer obtains control of a good or service. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. ASU 2014-09 is effective for annual periods beginning after December 15, 2016, including interim periods within that annual period. HSNi is in the process of assessing the impact of the adoption of ASU 2014-09 to its consolidated financial statements.

Fiscal Year

HSNi’s consolidated financial results are reported on a calendar year basis ending on December 31. HSN’s reporting period is the same as HSNi. Cornerstone has a 4-4-5 week accounting cycle with the fiscal year ending on the Saturday on or immediately preceding December 31. Cornerstone’s fiscal years 2014, 2013, and 2012 each included 52 weeks. 

Reclassifications

Reclassifications were made to prior period amounts within the consolidated statements of cash flows to conform to the current year's presentation.

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Long-Term Debt (Aggregate Contractual Maturities Of Long-Term Debt) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Long-term Debt, Unclassified [Abstract]
2015	$ 17,188
2016	18,750
2017	192,188
Total long-term debt	$ 228,126	$ 240,625

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Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2014

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosure Of Cash Flow Information

Supplemental Disclosure of Cash Flow Information:

	Year Ended December 31,
	2014			2013			2012
	(in thousands)
Cash paid during the period for:
Income tax payments	$	87,787		$	92,502		$	52,709
Income tax refunds	(482		)	(2,061		)	(10		)
Interest payments	6,142			5,230			29,985
Non-cash investing activities:
Capital expenditures incurred but paid in advance	9,100			—			—
Non-cash financing activities:
Effective portion of change in interest rate swap	(1,581		)	1,296			755

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Subsequent Events Subsequent Event (Note)

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

Subsequent Events [Text Block]

SUBSEQUENT EVENTS

New Credit Agreement

On January 27, 2015, HSNi entered into a $1.25 billionfive-year syndicated credit agreement ("Credit Agreement") which is secured by 100% of the voting equity securities of HSNi's U.S. subsidiaries and 65% of HSNi's first-tier foreign subsidiaries. The Credit Agreement replaced the existing $600 million credit facility that was set to expire in April 2017. Certain HSNi subsidiaries have unconditionally guaranteed HSNi's obligations under the Credit Agreement. The Credit Agreement, which includes a $750 million revolving credit facility and a $500 million term loan, may be increased up to $1.75 billion subject to certain conditions and expires January 27, 2020. HSNi drew $200 million from its term loan under the new Credit Agreement on January 27, 2015 to repay its existing term loan of $228.1 million and drew the remaining $300 million from its term loan and $200 million under the revolving credit facility, both under the new Credit Agreement, on February 18, 2015 to fund a $524 million special cash dividend that was paid on February 19, 2015, as discussed below.

In connection with the termination of the prior credit agreement, of the unamortized deferred financing costs of $2.4 million, $0.5 million will be written off in the first quarter of 2015. The balance of $1.9 million will be amortized to interest expense over the five-year term of the new Credit Agreement in addition to the $6.6 million in capitalized financing costs related to the new Credit Agreement.

The Credit Agreement includes various covenants, limitations and events of default customary for similar facilities

including a maximum leverage ratio of 3.50x and a minimum interest coverage ratio of 3.00x. Loans under the Credit Agreement bear interest at a per annum rate equal to a LIBOR rate plus a predetermined margin that ranges from 1.50% to 2.25% or the Base Rate (as defined in the Credit Agreement) plus a predetermined margin that ranges from 0.50% to 1.25%. HSNi can elect to borrow at either a LIBOR or the Base Rate and the predetermined margin is based on HSNi's leverage ratio. HSNi pays a commitment fee ranging from 0.20% to 0.40% (based on the leverage ratio) on the unused portion of the revolving credit facility.

Special Cash Dividend and Share Repurchase Program

Effective January 27, 2015, HSNi's Board of Directors approved a special cash dividend of $10.00 per common share, representing $524 million in the aggregate, that was paid February 19, 2015 to HSNi record holders as of February 9, 2015. The special cash dividend was funded primarily from HSNi's new $1.25 billion Credit Agreement. As of December 31, 2014, on a pro forma basis after giving retroactive effect to the special cash dividend, HSNi's leverage ratio of net debt to Adjusted EBITDA would have been approximately 1.8x. Additionally, the Board also authorized a new share repurchase program covering 4 million shares, principally to offset dilution related to HSNi's equity compensation programs.

In conjunction with the special cash dividend, as required by the anti-dilution provisions of HSNi's equity compensation plans (the "Plans"), adjustments were made to outstanding equity awards as of the ex-dividend date to preserve their value following the dividend, as follows: (i) the number of shares subject to outstanding RSUs was increased as a result of the reinvestment of the dividend; and (ii) the exercise prices of outstanding stock options and SARs and the grant date fair value of MSUs were reduced and the number of shares subject to such awards was increased. Approximately 452,000 additional awards were issued as a result of the special dividend. These adjustments did not result in additional stock-based compensation expense, as the fair value of the outstanding awards did not change. As further required by the Plans, the maximum number of shares issuable under the Plans was also proportionally adjusted, which resulted in approximately 943,000 additional shares available to be issued.

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Retirement And Savings Plan (Note)

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Retirement And Savings Plan

RETIREMENT AND SAVINGS PLANS

Effective December 31, 2008, HSNi established the HSN, Inc. Retirement Savings Plan that qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 50% of their pretax salary, up to the statutory limits. For the years ended December 31, 2014 and December 31, 2013, HSNi contributed fifty cents for each dollar a participant contributed of the first 6% of a participant's deferrals. For the year ended December 31, 2012, HSNi contributed twenty-five cents for each dollar a participant contributed of the first 6% of a participant's deferrals. HSNi’s matching contributions were $4.6 million, $4.6 million and $2.0 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Effective January 1, 2014, HSNi initiated a nonqualified deferred compensation plan allowing salary and annual bonus deferrals for qualifying employees as permitted by the Internal Revenue Code. Participant deferrals earn investment returns based on a select number of investment options, including equity and debt mutual funds. HSNi invested comparable amounts in marketable securities through life insurance policies to mitigate the risk associated with the investment return on the employee deferrals. Assets related to the funded portion of the deferred compensation plan are held in a rabbi trust which remains subject to claims of HSNi's general creditors. HSNi remains liable to the participants for the unfunded portion of the plan. HSNi records changes in the fair value of the asset and liability in the statement of operations. As of December 31, 2014, the company-owned life insurance policies had a cash surrender value of $0.5 million and was recorded in "Other non-current assets" in the consolidated balance sheet and the deferred compensation liability was $0.6 million and was recorded in "Other long-term liabilities" in the consolidated balance sheet.

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Property And Equipment (Schedule Of Property And Equipment) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Capitalized software	$ 223,436	$ 215,893
Computer and broadcast equipment	89,739	85,521
Buildings and leasehold improvements	105,086	102,437
Furniture and other equipment	88,174	83,779
Projects in progress	30,794	12,528
Land and land improvements	10,541	10,460
Property and equipment, gross	547,770	510,618
Less: accumulated depreciation and amortization	(353,881)	(331,898)
Total property and equipment, net	$ 193,889	$ 178,720

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Shareholders' Equity Shareholders Equity Note (Tables)

12 Months Ended

Dec. 31, 2014

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table provides a rollforward of accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012 (in thousands):

	2014			2013			2012
Accumulated other comprehensive income (loss) as of January 1,	$	354		$	(471	)	$	—
Other comprehensive (loss) income before reclassifications	(1,581		)	1,329			(755		)
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense in the consolidated statements of operations	1,215			—			—
Income tax (benefit) expense	139			(504		)	284
Other comprehensive income, net of tax	(227		)	825			(471		)
Accumulated other comprehensive income (loss) as of December 31,	$	127		$	354		$	(471	)

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Valuation And Qualifying Accounts

12 Months Ended

Dec. 31, 2014

Valuation and Qualifying Accounts [Abstract]

Valuation And Qualifying Accounts

Description	Balance at Beginning of Period		Charges to Earnings		Charges to Other Accounts			Deductions				Balance at End of Period
2014
Allowance for doubtful accounts	$	16,863	$	23,986	$	1,874		$	(23,899	)	(1)	$	18,824
Sales return accrual	40,072		655,304		—			(654,587		)		40,789
Deferred tax valuation allowance	1,495		82		—			—				1,577
2013
Allowance for doubtful accounts	$	14,537	$	23,414	$	13		$	(21,101	)	(1)	$	16,863
Sales return accrual	40,554		648,381		—			(648,863		)		40,072
Deferred tax valuation allowance	5,293		262		(4,060		)	—				1,495
2012
Allowance for doubtful accounts	$	13,127	$	24,186	$	(137	)	$	(22,639	)	(1)	$	14,537
Sales return accrual	39,563		658,394		205			(657,608		)		40,554
Deferred tax valuation allowance	14,274		23		(9,004		)	—				5,293

(1) Write-off of uncollectible accounts receivable

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Summary Of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Revenue Recognition

Revenue Recognition

Revenue primarily consists of merchandise sales and is reduced by incentive discounts and sales returns to arrive at net sales. Revenue is recorded when delivery to the customer has occurred. Delivery is considered to have occurred when the customer takes title and assumes the risks and rewards of ownership, which is on the date of shipment. HSNi's sales policy allows customers to return merchandise for a full refund or exchange, subject to pre-established time restrictions. Allowances for returned merchandise and other adjustments (including reimbursed shipping and handling costs) are provided based upon past experience. Actual returns of product sales have not materially varied from estimates in any of the periods presented.

Revenue Recognition, Gift Cards

HSN issues merchandise credits primarily for products returned outside of HSN’s normal return policy. Revenues from these credits are recognized when (1) redeemed by the customer, or (2) it is determined that it is not probable the Company has an obligation to escheat the value of the unredeemed credit to relevant jurisdictions and the likelihood of the credit being redeemed by the customer is remote (“breakage”).

Shipping and Handling Fees and Costs

Shipping and Handling Fees and Costs

Shipping and handling fees billed to customers are recorded as revenue. The costs associated with shipping goods to customers are recorded as cost of sales.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and money market instruments with an original maturity of three months or less when purchased and are stated at cost.

Accounts Receivable

Accounts Receivable

Accounts receivable are principally comprised of amounts due from customers and credit card companies, net of an allowance for doubtful accounts. HSN provides extended payment terms to its customers on certain products known as Flexpay. Revenue is recorded when delivery to the customer has occurred, at which time HSN collects the first payment, sales tax and all shipping and handling fees. Subsequent collections are due from customers in 30-day increments, payable automatically upon authorization of the customer’s method of payment. HSN accepts most credit and select debit cards. HSN offers Flexpay programs ranging from two to six interest-free monthly payments. Flexpay receivables consist of outstanding balances owed by customers, less a reserve for uncollectible balances.

Inventories

Inventories

Inventories, which primarily consist of finished goods, are valued at the lower of cost or market, with the cost being determined based upon the first-in, first-out method. Cost includes inbound freight and duties and, in the case of HSN, certain allocable costs, including certain warehouse costs.

Property and Equipment

Property and Equipment

Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance and any gains or losses on dispositions are included in the consolidated statement of operations.

Depreciation is recorded on a straight-line basis to allocate the cost of depreciable assets to operations over the shorter of the estimated service life or lease period.

Asset Category	Depreciation Period
Computer and broadcast equipment and capitalized software	3 to 6 Years
Buildings, leasehold improvements and land improvements	3 to 40 Years
Furniture and other equipment	2 to 10 Years

HSNi capitalizes certain qualified costs incurred in connection with the development of internal use software. Capitalization of internal use software costs begins when the preliminary project stage is completed; management with the relevant authority authorizes and commits to the funding of the software project; and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalized internal use software is amortized on a straight-line basis over the estimated useful life of the software, not to exceed five years.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill and Indefinite-Lived Intangible Assets

Goodwill acquired in business combinations is assigned to the reporting units that are expected to benefit from the combination as of the acquisition date. Goodwill and indefinite-lived intangible assets, primarily trade names and trademarks, are assessed annually for impairment as of October 1 or upon the occurrence of certain events or substantive changes in circumstances. See Note 3 for a further discussion on goodwill and indefinite-lived intangible assets.

Long-Lived Assets and Intangible Assets with Definite Lives

Long-Lived Assets and Intangible Assets with Definite Lives

Long-lived assets, including property and equipment and intangible assets with definite lives, are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is deemed to not be recoverable, an impairment loss is recorded as the amount by which the carrying amount of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is generally recorded on a straight-line or accelerated basis over their estimated lives.

Cable and Satellite Distribution Fees

Cable and Satellite Distribution Fees

Cable and satellite distribution fees relate to fees paid in connection with cable and satellite contracts for carriage of HSN’s programming. Fees that are paid upfront for annual contracts are included in "Prepaid expenses and other current assets" in the accompanying consolidated balance sheets and are amortized on a straight-line basis over the terms of the respective contracts. Unpaid fees are accrued and included in the line item “Accrued expenses and other current liabilities” in the accompanying consolidated balance sheets. Cable and satellite distribution fees and amortization are included in “Selling and marketing" expense in the accompanying consolidated statements of operations.

Advertising

Advertising

Advertising costs include catalog production and distribution costs. Advertising costs are expensed in the period incurred, except for Cornerstone’s direct costs of producing and distributing its catalogs, which are capitalized. These capitalized costs are amortized over the expected future revenue stream, which is generally three months from the date catalogs are mailed.

Income Taxes

Income Taxes

HSNi accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the deferred tax asset will not be realized. HSNi records interest and penalties on potential tax contingencies as a component of income tax expense and records interest net of any applicable related income tax benefit.

HSNi recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on its technical merits. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement.

Stock-Based Compensation

Stock-Based Compensation

HSNi recognizes compensation expense for stock-based awards, reduced for estimated forfeitures, on a straight-line basis over the requisite service period for awards with service conditions and on a graded-vested basis for awards with market or performance conditions. Tax benefits resulting from tax deductions in excess of the stock-based compensation expense recognized in the consolidated statements of cash flows are reported as a component of financing cash flows. HSNi issues new shares to satisfy equity vestings and exercises. See Note 11 for a further description of our stock compensation plans.

Earnings Per Share

Earnings Per Share

HSNi computes basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the treasury stock method.

Derivatives Instruments

Derivative Instruments

HSNi uses derivatives in the management of interest rate risk with respect to interest expense on variable rate debt. Such instruments are not held or used for trading purposes. HSNi is party to an interest rate swap agreement which began in January 2014 with one major financial institution that fixes the variable benchmark component (LIBOR) of HSNi's interest rate on a portion of its variable-rate debt. See Note 8 for further discussion of derivative instruments.

Stockholders' Equity, Policy

Share Repurchases

Shares repurchased pursuant to HSNi's share repurchase program are immediately retired upon purchase. Repurchased common stock is reflected as a reduction of shareholders' 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 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.

Credit Card Origination Costs, Policy

Private Label Credit Card

HSN's credit card program offers eligible customers a private label credit card. All cardholders receive certain rewards and benefits which are designed to recognize and promote client loyalty. HSN designs, executes and administers marketing programs to promote usage of the card to current and potential customers. These marketing programs are funded largely by the sponsoring bank. HSN also saves on interchange fees that it would incur if its customers used third-party cards.

Accounting Estimates

Accounting Estimates

HSNi prepares its financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”). These principles require management to make certain estimates and assumptions during the preparation of its consolidated financial statements. These estimates and assumptions impact the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates.

Significant estimates underlying the accompanying consolidated financial statements include: the determination of the lower of cost or market adjustment for inventory; sales returns and other revenue allowances; the allowance for doubtful accounts; the recoverability of long-lived assets; the impairment of intangible assets; the annual expected effective tax rate; the determination of deferred income taxes, including related valuation allowances; the accrual for actual, pending or threatened litigation, claims and assessments; the breakage of merchandise credits; and assumptions related to the determination of stock-based compensation and contingent consideration related to acquisitions.

Certain Risks and Concentrations

Certain Risks and Concentrations

HSNi’s business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security, consumer credit risk and credit card fraud. HSNi also depends on third-party service providers for processing certain fulfillment services.

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Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Cash flows from operating activities attributable to continuing operations:
Net income	$ 172,984	[1],[2]	$ 178,449	[3]	$ 130,675	[4]
Loss from discontinued operations, net of tax	0		0		(5,822)
Income from continuing operations	172,984		178,449		136,497	[4]
Adjustments to reconcile income from continuing operations to net cash provided by operating activities attributable to continuing operations:
Depreciation and amortization	43,934		40,589		38,005
Stock-based compensation expense	15,606		14,043		19,056
Loss on debt extinguishment	0		0		(18,627)
Amortization of debt issuance costs	1,107		1,130		1,777
Deferred income taxes	(2,045)		6,370		(2,146)
Bad debt expense	23,986		22,773		24,186
Excess tax benefits from stock-based awards	(8,397)		(10,360)		(19,004)
Fair value adjustment to contingent consideration obligation	0		(3,600)	[3]	0
Asset impairment	0		3,040	[3]	0
Other	48		1,140		764
Changes in current assets and liabilities:
Accounts receivable	(76,654)		(38,211)		(51,995)
Inventories	(71,386)		3,617		(36,117)
Prepaid expenses and other assets	2,243		(6,318)		(3,724)
Accounts payable, accrued expenses and other current liabilities	37,285		19,245		21,487
Net cash provided by operating activities attributable to continuing operations	138,711		231,907		147,413
Cash flows from investing activities attributable to continuing operations:
Capital expenditures	(47,316)		(51,952)		(45,803)
Acquisition of business, net of cash received	0		0		(22,875)
Advance payment of capital expenditure	0		(9,100)		0
Proceeds from sale of discontinued operations	0		0		6,580
Other	(320)		0		0
Net cash used in investing activities attributable to continuing operations	(47,636)		(61,052)		(62,098)
Cash flows from financing activities attributable to continuing operations:
Redemption of Senior Notes	0		0		(253,500)
Borrowing under term loan	0		0		250,000
Repayments of long-term debt	(12,500)		(9,375)		0
Payments of debt issuance costs	0		0		(4,607)
Repurchase of common stock	(55,467)		(146,894)		(221,835)
Cash dividends paid	(57,824)		(42,281)		(31,049)
Proceeds from issuance of common stock	2,599		8,396		20,688
Tax withholdings related to stock-based awards	(12,707)		(14,395)		(18,209)
Excess tax benefits from stock-based awards	8,397		10,360		19,004
Payment of contingent consideration obligation	0		(2,172)		0
Net cash used in financing activities attributable to continuing operations	(127,502)		(196,361)		(239,508)
Total cash used in continuing operations	(36,427)		(25,506)		(154,193)
Cash flows from discontinued operations:
Net cash used in operating activities attributable to discontinued operations	(21)		(153)		(5,523)
Total cash used in discontinued operations	(21)		(153)		(5,523)
Net decrease in cash and cash equivalents	(36,448)		(25,659)		(159,716)
Cash and cash equivalents at beginning of period	196,433		222,092		381,808
Cash and cash equivalents at end of period	$ 159,985		$ 196,433		$ 222,092

[1] (b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

[2] (a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

[3] (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

[4] (a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

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Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Accounts Receivable, Net

The balance of accounts receivable, net of allowances, is as follows (in thousands):

	December 31,
	2014		2013
Flexpay and other customer-related	$	271,613	$	222,983
Credit card companies	17,865		21,447
Other	28,307		20,685
Accounts receivable, net	$	317,785	$	265,115

Schedule Of Property And Equipment

Asset Category	Depreciation Period
Computer and broadcast equipment and capitalized software	3 to 6 Years
Buildings, leasehold improvements and land improvements	3 to 40 Years
Furniture and other equipment	2 to 10 Years

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Supplemental Cash Flow Information (Supplemental Disclosure Of Cash Flow Information) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash paid during the period for:
Income tax payments	$ 87,787	$ 92,502	$ 52,709
Income tax refunds	(482)	(2,061)	(10)
Interest payments	6,142	5,230	29,985
Non-cash financing activities:
Capital expenditures incurred but paid in advance	9,100	0	0
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)	$ (1,581)	$ 1,296	$ 755

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Stock-Based Awards (Tables)

12 Months Ended

Dec. 31, 2014

Share-based Compensation [Abstract]

Stock-Based Compensation Expense

Stock-based compensation expense is included in the following line items in the accompanying consolidated statements of operations (in thousands):

	Year Ended December 31,
	2014			2013			2012
Selling and marketing	$	4,736		$	3,793		$	3,515
General and administrative	10,870			10,250			15,541
Stock-based compensation expense before income taxes	15,606			14,043			19,056
Income tax benefit	(5,685		)	(4,835		)	(6,494		)
Stock-based compensation expense after income taxes	$	9,921		$	9,208		$	12,562

Summary Of Status Of Nonvested RSUs

A summary of the status of the nonvested RSUs, as of December 31, 2014 and changes during the year ended December 31, 2014 is as follows:

	Number of RSUs		Weighted Average Grant Date Fair Value
Nonvested at January 1, 2014	623,709		$	40.25
Granted	238,620		55.06
Vested	(191,106	)	29.18
Forfeited	(69,644	)	47.62
Nonvested at December 31, 2014	601,579		48.88

Summary Of Status Of Outstanding Stock Options And SARs

A summary of the status of the outstanding stock options and SARs as of December 31, 2014 is as follows:

	Number of options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2014	2,580,889		$	34.15
Granted	423,579		55.05
Exercised	(650,740	)	24.34
Forfeited	(39,528	)	54.70
Expired	(17,520	)	17.63
Outstanding at December 31, 2014 (1)	2,296,680		40.54		5.3	$	81,429,314
Vested and expected to vest at December 31, 2014	2,223,860		40.04		5.2	$	79,976,327
Exercisable at December 31, 2014	1,598,089		35.07		3.9	$	65,406,938

(1) Approximately 0.3 million stock options outstanding as of December 31, 2014 were held by employees of the other Spincos.

Weighted Average Assumptions Used In Black-Scholes Option Pricing Model

The weighted average assumptions used in the Black-Scholes option pricing model are as follows:

	Year Ended December 31,
	2014		2013		2012
Volatility factor	36.4	%	49.1	%	46.5	%
Risk-free interest rate	1.55	%	0.85	%	0.91	%
Expected term	4.7		4.8		5.0
Dividend yield	1.8	%	1.2	%	1.4	%

Summary Of Information About Stock Options And SARs Outstanding And Exercisable

The following table summarizes the information about stock options and SARs outstanding and exercisable as of December 31, 2014:

	Outstanding				Exercisable
	Number Outstanding  at December 31, 2014	Weighted Average Exercise  Price		Weighted Average Remaining Contractual Term in Years	Number Exercisable  at December 31, 2014	Weighted Average Exercise Price
$0.00 to $9.99	96,094	$	5.65	4.0	96,094	$	5.65
$10.00 to $19.99	136,836	17.74		3.7	136,836	17.74
$20.00 to $29.99	57,320	29.72		6.1	57,320	29.72
$30.00 to $39.99	959,121	34.92		3.9	848,201	34.82
$40.00 to $49.99	370,555	44.71		3.6	370,555	44.71
$50.00 to $59.99	676,754	56.72		8.7	89,083	59.19
	2,296,680				1,598,089

Weighted Average Assumptions Used In Valuation Of ESPP Options

The following are the weighted average assumptions used in the valuation of the ESPP options for the years ended December 31, 2014 and 2013:

	Year Ended December 31,
	2014		2013
Volatility factor	22.0	%	23.3	%
Risk-free interest rate	0.08	%	0.10	%
Expected term	0.5		0.5
Dividend yield	1.7	%	1.3	%

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Intangible Assets And Goodwill (Balance Of Intangible Assets, Net) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets with indefinite lives	$ 261,808	$ 261,809
Intangible assets with definite lives, net	154	651
Total intangible assets, net	$ 261,962	$ 262,460

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Stock-Based Awards (Weighted Average Assumptions Used In Black-Scholes Option Pricing Model) (Details) (Stock Options And Stock Appreciation Rights [Member])	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Stock Options And Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility factor	36.40%	49.10%	46.50%
Risk-free interest rate	1.55%	0.85%	0.91%
Expected term	4 years 8 months	4 years 9 months	5 years
Dividend yield	1.80%	1.20%	1.40%

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Consolidated Statements Of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Income Statement [Abstract]
Net sales	$ 3,587,995		$ 3,403,983		$ 3,266,739
Cost of sales	2,314,933		2,174,168		2,083,015
Gross profit	1,273,062		1,229,815		1,183,724
Operating expenses:
Selling and marketing	723,407		695,794		662,322
General and administrative	221,112		210,778		224,653
Depreciation and amortization	43,934		40,589		38,005
Total operating expenses	988,453		947,161		924,980
Operating income	284,609	[1],[2]	282,654	[3]	258,744	[4]
Other income (expense):
Interest income	184		205		564
Interest expense	(7,266)		(6,718)		(20,811)
Loss on debt extinguishment	0		0		(18,627)
Total other expense, net	(7,082)		(6,513)		(38,874)
Income from continuing operations before income taxes	277,527	[1],[2]	276,141	[3]	219,870	[4]
Income tax provision	(104,543)	[1],[2]	(97,692)	[3]	(83,373)	[4]
Income from continuing operations	172,984		178,449		136,497	[4]
Loss from discontinued operations, net of tax	0		0		(5,822)
Net income	$ 172,984	[1],[2]	$ 178,449	[3]	$ 130,675	[4]
Income from continuing operations per share:
Basic (usd per share)	$ 3.28		$ 3.33		$ 2.42
Diluted (usd per share)	$ 3.23		$ 3.25		$ 2.36
Net income per share:
Basic (usd per share)	$ 3.28		$ 3.33		$ 2.32
Diluted (usd per share)	$ 3.23		$ 3.25		$ 2.25
Shares used in computing earnings per share:
Basic (shares)	52,736		53,640		56,314
Diluted (shares)	53,633		54,857		57,956
Dividends declared per common share (usd per share)	$ 1.10		$ 0.79		$ 0.555

[1] (b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

[2] (a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

[3] (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

[4] (a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

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Discontinued Operations Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Summary of Discontinued Operations

The following table reflects the results of Smith+Noble and The Territory Ahead that are reported as discontinued operations for all periods presented (in thousands):

	Year Ended December 31,
	2014		2013		2012
Net sales	$	—	$	—	$	40,154
Loss from discontinued operations (including loss on sale of $6.0 million recognized in the second quarter of 2012)	$	—	$	—	$	(9,370	)
Income tax benefit	—		—		3,548
Loss from discontinued operations, net of tax	$	—	$	—	$	(5,822	)

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Consolidated Statements Of Shareholders' Equity (USD $) In Thousands, unless otherwise specified		Total		Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive (Loss) Income [Member]
Balance, value at Dec. 31, 2011		$ 589,697		$ 0	$ 584	$ 2,180,112	$ (1,590,999)	$ 0
Balance, shares at Dec. 31, 2011				0	58,414
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from stock-based compensation awards, including tax benefit (shares)					1,901
Repurchases of common stock (shares)					(5,461)
Shares, Outstanding				0	54,854
Stock-based compensation expense for equity awards		14,440				14,440
Cash dividend declared on common stock		(31,049)				(31,049)
Issuance of common stock from stock-based compensation awards		21,816			19	21,797
Repurchases of common stock		(220,594)			(54)	(220,540)
Net income		130,675	[1]				130,675
Other comprehensive income (loss)		(471)						(471)
Balance, value at Dec. 31, 2012		504,514		0	549	1,964,760	(1,460,324)	(471)
Balance, shares at Dec. 31, 2012				0	54,854
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from stock-based compensation awards, including tax benefit (shares)					885
Repurchases of common stock (shares)					(2,737)
Shares, Outstanding				0	53,002
Stock-based compensation expense for equity awards		14,043				14,043
Cash dividend declared on common stock		(42,281)				(42,281)
Issuance of common stock from stock-based compensation awards		20,425			9	20,416
Repurchases of common stock		(146,894)			(28)	(146,866)
Net income		178,449	[2]				178,449
Other comprehensive income (loss)		825						825
Balance, value at Dec. 31, 2013		529,081		0	530	1,810,072	(1,281,875)	354
Balance, value at Sep. 30, 2013
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares, Outstanding				0
Net income	[3]	61,573
Balance, value at Dec. 31, 2013		529,081		0	530	1,810,072	(1,281,875)	354
Balance, shares at Dec. 31, 2013				0	53,002
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from stock-based compensation awards, including tax benefit (shares)					435
Repurchases of common stock (shares)					(1,011)
Shares, Outstanding				0	52,426
Stock-based compensation expense for equity awards		15,606				15,606
Cash dividend declared on common stock		(57,824)				(57,824)
Issuance of common stock from stock-based compensation awards		(1,812)			4	(1,816)
Repurchases of common stock		(55,467)			(10)	(55,457)
Net income		172,984	[4],[5]				172,984
Other comprehensive income (loss)		(227)						(227)
Balance, value at Dec. 31, 2014		602,341		0	524	1,710,581	(1,108,891)	127
Balance, value at Sep. 30, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares, Outstanding				0
Net income	[6]	68,331
Balance, value at Dec. 31, 2014		$ 602,341		$ 0

[1] (a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

[2] (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

[3] (c)The fourth quarter of 2013 includes a $3.6 million reduction to a previously recorded contingent consideration obligation and a $3.0 million impairment charge of intangible assets related to a 2012 acquisition resulting in a net expense reduction of $0.6 million, or $1.7 million net of taxes. These fair value adjustments increased diluted earnings per share by $0.03.

[4] (b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

[5] (a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

[6] (d)The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share by $0.06.

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Segment Information (Financial Information By Segment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 31, 2014		Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014		Dec. 31, 2013		Sep. 30, 2013		Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net sales:
Net sales	$ 1,117,894	[1]	$ 837,477	$ 855,204	$ 777,420	[2]	$ 1,019,835	[3]	$ 798,890	[4]	$ 812,606	$ 772,651	$ 3,587,995	$ 3,403,983	$ 3,266,739
Identifiable assets:
Identifiable assets:	1,432,194						1,337,923						1,432,194	1,337,923	1,331,952
Capital expenditures:
Capital expenditures:													47,316	51,952	45,803
HSN [Member]
Net sales:
Net sales													2,476,088	2,312,382	2,265,026
Identifiable assets:
Identifiable assets:	1,134,685						1,058,573						1,134,685	1,058,573	1,083,714
Capital expenditures:
Capital expenditures:													32,307	36,156	33,566
Cornerstone [Member]
Net sales:
Net sales													1,111,907	1,091,601	1,001,713
Identifiable assets:
Identifiable assets:	297,509						279,350						297,509	279,350	248,238
Capital expenditures:
Capital expenditures:													$ 15,009	$ 15,796	$ 12,237

[1] (d)The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share by $0.06.

[2] (a)The first quarter of 2014 includes a $3.1 million settlement with the Consumer Product Safety Commission.

[3] (c)The fourth quarter of 2013 includes a $3.6 million reduction to a previously recorded contingent consideration obligation and a $3.0 million impairment charge of intangible assets related to a 2012 acquisition resulting in a net expense reduction of $0.6 million, or $1.7 million net of taxes. These fair value adjustments increased diluted earnings per share by $0.03.

[4] (b)The third quarter of 2013 includes discrete tax benefits of $3.7 million which increased diluted earnings per share by $0.07.

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Accrued Expenses And Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2014

Accrued Liabilities, Current [Abstract]

Schedule of Accrued Expenses And Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

	December 31,
	2014		2013
Accrued sales returns	$	40,789	$	40,072
Accrued cable and satellite distribution fees	41,375		30,452
Accrued freight and fulfillment expenses	35,225		32,646
Accrued compensation and benefits	40,327		36,567
Other accrued expenses and current liabilities	83,358		68,247
Total accrued expenses and other current liabilities	$	241,074	$	207,984

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Fair Value Measurements (Fair Value Of Other Financial Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value	$ 0	$ 1,032
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Derivative Assets, at Fair Value	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value		0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Derivative Assets, at Fair Value	208	574
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value		0
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Derivative Assets, at Fair Value	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value		$ 1,032

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Related Party Transactions (Note)

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

Relationship Between Liberty Media Corporation and HSNi

Spinco Agreement

In connection with the Spin-off, pursuant to a Spinco Assignment and Assumption Agreement (the “Spinco Agreement”), dated as of August 20, 2008, among HSNi, IAC, Liberty Media Corporation (“Liberty”) and a subsidiary of Liberty that held shares of IAC common stock and IAC Class B common stock (together with Liberty, the “Liberty Parties”), HSNi (i) assumed from IAC all rights and obligations providing for post-Spin-off governance and other arrangements at HSNi under the Spinco Agreement, dated May 13, 2008, among IAC, Liberty and affiliates of Liberty that held shares of IAC common stock and/or Class B common stock at the time such Spinco Agreement was entered into, and (ii) as required by the Spinco Agreement, entered into a registration rights agreement with the Liberty Parties. Following is a summary of the material terms of the Spinco Agreement:

Representation of Liberty on the Spinco Boards of Directors

The Spinco Agreement generally provides that so long as Liberty beneficially owns securities of HSNi representing at least 20% of the total voting power of HSNi’s equity securities, Liberty has the right to nominate up to 20% of the directors serving on HSNi’s Board of Directors (rounded up to the nearest whole number). Any director nominated by Liberty must be reasonably acceptable to a majority of the directors on HSNi’s Board who were not nominated by Liberty. All but one of Liberty’s nominees serving on the Board of Directors must qualify as “independent” under applicable stock exchange rules. In addition, the Nominating Committee of the Board may include only “Qualified Directors,” namely directors other than any who were nominated by Liberty, are officers or employees of HSNi or were not nominated by the Nominating Committee of the HSNi Board in their initial election to the Board and for whose election any Liberty Party voted shares.

Acquisition Restrictions

The Liberty Parties have agreed not to acquire beneficial ownership of any equity securities of HSNi (with specified exceptions) unless:

• the acquisition was approved by a majority of the Qualified Directors;

• the acquisition is permitted under the provisions described in “Competing Offers” below; or

• after giving effect to the acquisition, Liberty’s ownership percentage of the equity securities of HSNi, based on voting power, would not exceed the Applicable Percentage.

The “Applicable Percentage” is Liberty’s ownership percentage upon the Spin-off of HSNi, based on voting power (approximately 30%), plus 5%, but in no event more than 35%. Notwithstanding the foregoing, Liberty’s beneficial ownership may increase (and has increased) above the Applicable Percentage as a result of HSNi’s share repurchase program. Following the Spin-off, the Applicable Percentage for the Spinco is reduced for specified transfers of equity securities of the Spinco by the Liberty Parties. During the first two years following the Spin-off, acquisitions by the Liberty Parties were further limited to specified extraordinary transactions and, otherwise, to acquisitions representing no more than one-third of HSNi Common Stock received by the Liberty Parties in the Spin-off:

• transfers pursuant to a third party tender or exchange offer or in connection with any merger or other business combination, which merger or business combination has been approved by HSNi;

• transfers in a public offering in a manner designed to result in a wide distribution, provided that no such transfer is made, to the knowledge of the Liberty Parties, to any person whose ownership percentage (based on voting power) of HSNi’s equity securities, giving effect to the transfer, would exceed 15%;

• a transfer of all of the equity securities of HSNi beneficially owned by the Liberty Parties and their affiliates in a single transaction if the transferee’s ownership percentage (based on voting power), after giving effect to the transfer, would not exceed the Applicable Percentage and only if the transferee assumes all of the rights and obligations (subject to limited exceptions) of the Liberty Parties under the Spinco Agreement;

• specified transfers in connection with changes in the beneficial ownership of the ultimate parent company of a Liberty Party or a distribution of the equity interests of a Liberty Party or certain similar events; and

• specified transfers relating to certain hedging transactions or stock lending transactions in respect of the Liberty Parties’ equity securities in HSNi, subject to specified restrictions.

Competing Offers

During the period when Liberty continues to have the right to nominate directors to HSNi’s Board of Directors, if the Board of Directors determines to pursue certain types of transactions on a negotiated basis (either through an “auction” or with a single bidder), Liberty is granted certain rights to compete with the bidder or bidders, including the right to receive certain notices and information, subject to specified conditions and limitations. In connection with any such transaction that HSNi is negotiating with a single bidder, the Board of Directors must consider any offer for a transaction made in good faith by Liberty but is not obligated to accept any such offer or to enter into negotiations with Liberty.

If a third party (x) commences a tender or exchange offer for at least 35% of the capital stock of HSNi other than pursuant to an agreement with HSNi or (y) publicly discloses that its ownership percentage (based on voting power) exceeds 20% and HSNi’s Board fails to take certain actions to block such third party from acquiring an ownership percentage of HSNi (based on voting power) exceeding the Applicable Percentage, the Liberty Parties generally will be relieved of the obligations described under “Standstill Restrictions” and “Acquisition Restrictions” above to the extent reasonably necessary to permit Liberty to commence and consummate a competing offer. If Liberty’s ownership percentage (based on voting power) as a result of the consummation of a competing offer in response to a tender or exchange offer described in (x) above exceeds 50%, any consent or approval requirements of the Qualified Directors in the Spinco Agreement will be terminated, and, following the later of the second anniversary of the Spin-off and the date that Liberty’s ownership percentage (based on voting power) exceeds 50%, the obligations described under “Acquisition Restrictions” will be terminated.

Other

Following the Spin-off, amendments to the Spinco Agreement and determinations required to be made thereunder (including approval of transactions between a Liberty Party and HSNi that would be reportable under the proxy rules) will require the approval of the Qualified Directors.

Registration Rights Agreement

Under the registration rights agreement, the Liberty Parties and their permitted transferees (the “Holders”) will be entitled to three demand registration rights (and unlimited piggyback registration rights) in respect of the shares of HSNi common stock received by the Liberty Parties as a result of the Spin-off and other shares of HSNi common stock acquired by the Liberty Parties consistent with the Spinco Agreement (collectively, the “Registrable Shares”). The Holders will be permitted to exercise their registration rights in connection with certain hedging transactions that they may enter into with respect to the Registrable Shares.

HSNi will be obligated to indemnify the Holders, and each selling Holder will be obligated to indemnify HSNi, against specified liabilities in connection with misstatements or omissions in any registration statement.

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2014

Segment Reporting Information, Profit (Loss) [Abstract]

Adjusted EBITDA To Operating Income (Loss) And Consolidated Net Income

The following tables reconcile Adjusted EBITDA to operating income for HSNi’s operating segments and to HSNi’s consolidated net income (in thousands):

	Year Ended December 31, 2014
	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 from merchandise credits (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							(7,082		)
Income from continuing operations before income taxes							277,527
Income tax provision							(104,543		)
Net income							$	172,984

(a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

(b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

	Year Ended December 31, 2013
	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.

	Year Ended December 31, 2012
	HSN			Cornerstone			Total
Adjusted EBITDA	$	250,836		$	73,441		$	324,277
Stock-based compensation expense	(11,167		)	(7,889		)	(19,056		)
Depreciation and amortization	(26,486		)	(11,519		)	(38,005		)
Sales tax settlement	—			(7,750		)	(7,750		)
Loss on disposition of fixed assets	(680		)	(42		)	(722		)
Operating income	$	212,503		$	46,241		258,744
Total other expense, net							(38,874		)
Income from continuing operations before income taxes							219,870
Income tax provision							(83,373		)
Income from continuing operations							136,497
Loss from discontinued operations, net of tax							(5,822		)
Net income							$	130,675

(a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

Reconciliation of Segment Information to Consolidated

Financial information by segment is as follows (thousands):

	Year Ended December 31,
	2014		2013		2012
Net sales:
HSN	$	2,476,088	$	2,312,382	$	2,265,026
Cornerstone	1,111,907		1,091,601		1,001,713
Total	$	3,587,995	$	3,403,983	$	3,266,739
Identifiable assets:
HSN	$	1,134,685	$	1,058,573	$	1,083,714
Cornerstone	297,509		279,350		248,238
Total	1,432,194		1,337,923		1,331,952
Capital expenditures:
HSN	$	32,307	$	36,156	$	33,566
Cornerstone	15,009		15,796		12,237
Total	$	47,316	$	51,952	$	45,803

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Shareholders' Equity (Note)

12 Months Ended

Dec. 31, 2014

Stockholders' Equity Note [Abstract]

Shareholders' Equity

SHAREHOLDERS’ EQUITY

Stock Purchase Rights

In December 2008, HSNi’s Board of Directors approved the creation of a Series A Junior Participating Preferred Stock, adopted a shareholders rights plan and declared a dividend of one right for each outstanding share of common stock held by our shareholders of record as of the close of business on January 5, 2009. The rights attached to any additional shares of common stock issued after January 5, 2009. Initially, these rights, which trade with the shares of HSNi’s common stock, will not be exercisable. Under the rights plan, these rights will be exercisable if a person or group acquires or commences a tender or exchange offer for 15% or more of HSNi’s common stock (except for certain grandfathered persons, such as Liberty, to which higher thresholds apply). If the rights become exercisable, each right will permit its holder, other than the “acquiring person,” to purchase from us shares of common stock at a 50% discount to the then prevailing market price. As a result, the rights will cause substantial dilution to a person or group that becomes an “acquiring person” on terms not approved by HSNi’s Board of Directors.

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) includes the cumulative gains and losses of derivative instruments that qualify as cash flow hedges. The following table provides a rollforward of accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012 (in thousands):

	2014			2013			2012
Accumulated other comprehensive income (loss) as of January 1,	$	354		$	(471	)	$	—
Other comprehensive (loss) income before reclassifications	(1,581		)	1,329			(755		)
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense in the consolidated statements of operations	1,215			—			—
Income tax (benefit) expense	139			(504		)	284
Other comprehensive income, net of tax	(227		)	825			(471		)
Accumulated other comprehensive income (loss) as of December 31,	$	127		$	354		$	(471	)

Share Repurchase Program

On September 27, 2011, HSNi’s Board of Directors approved a share repurchase program which allowed HSNi to purchase 10 million shares of its common stock from time to time through privately negotiated and/or open market transactions. For the year ended December 31, 2014, HSNi acquired approximately 1.0 million shares of outstanding common stock for $55.5 million under the program at an average price of $54.87. For the year ended December 31, 2013, HSNi acquired approximately 2.7 million shares of outstanding common stock for $146.9 million under the program at an average price of $53.67. In July 2014, HSNi completed its 10 million share repurchase program at an aggregate cost of $451.0 million, representing an average cost of $45.10 per share. All shares were immediately retired upon purchase.

On January 27, 2015, HSNi's Board of Directors approved a new share repurchase program which will allow HSNi to purchase up to 4 million shares of its common stock. The timing of any repurchases and actual number of shares repurchased will depend 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. See discussion of new share repurchase program in Note 21-Subsequent Events.

Dividend Policy

During the year ended December 31, 2014, HSNi's Board of Directors approved four quarterly cash dividends totaling $1.10 per common share resulting in aggregate dividend payments of approximately $57.8 million. During the year ended December 31, 2013, HSNi’s Board of Directors approved four quarterly cash dividends totaling $0.79 per common share resulting in a dividend payment of approximately $42.3 million.

In January 2015, HSNi's Board of Directors approved a special cash dividend of $10.00 per common share, representing $524 million in the aggregate, that will be paid February 19, 2015 to HSNi record holders as of February 9, 2015. In February 2015, HSNi's Board of Directors approved a quarterly cash dividend of $0.35 per common share. The dividend will be paid March 25, 2014 to HSNi's record holders as of March 11, 2014. See discussion of special cash dividend in Note 21-Subsequent Events.

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Stock-Based Awards (Narrative) (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 22,300,000
Weighted average period of recognition of unrecognized compensation cost, years		2 years 1 month 18 days
New awards authorized		8,000,000.0
Available for grants		2,600,000
Deferred Compensation Arrangement with Individual, Maximum Contractual Term		10 years
Payments Related to Tax Withholding for Share-based Compensation		12,707,000	14,395,000	18,209,000
Tax benefit realized		5,685,000	4,835,000	6,494,000
Cash received from stock option exercised		2,599,000	8,396,000	20,688,000
Deferred Compensation Liability, Current and Noncurrent		600,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		16,000,000
Weighted average period of recognition of unrecognized compensation cost, years		2 years 3 months
Total intrinsic value of RSUs held by employees		10,900,000	36,200,000	33,900,000
Tax benefit realized		4,200,000	12,500,000	10,900,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		238,620
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Grant Date Fair Value		$ 55.06	$ 58.83	$ 36.51
Restricted Stock Units (RSUs) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years		3 years
Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years		5 years
Stock Options And Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		6,300,000
Weighted average period of recognition of unrecognized compensation cost, years		1 year 8 months
Pre-tax difference between the closing price of common stock		$ 76.00
Intrinsic value of the stock options and SARs exercised		23,400,000	19,300,000	45,700,000
Cash received from stock option exercised		600,000	6,500,000	19,100,000
Tax benefit realized from stock option exercised		8,800,000	7,300,000	11,700,000
Stock options granted		423,579
Weighted average exercise price of stock options and SARs		$ 55.05
Weighted average fair values of stock options and SARs granted	$ 12.96	$ 15.24	$ 22.57
Volatility factor		36.40%	49.10%	46.50%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		1.55%	0.85%	0.91%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		4 years 8 months	4 years 9 months	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		1.80%	1.20%	1.40%
Stock Options And Stock Appreciation Rights [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years		3 years
Stock Options And Stock Appreciation Rights [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred Compensation Arrangement with Individual, Maximum Contractual Term		10 years
Vesting period, years		4 years
Stock options granted		719,000
Weighted average exercise price of stock options and SARs		$ 39.84
Weighted average fair values of stock options and SARs granted		$ 3.36
Performance Based Equity Compensation Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years		3 years
Share-based liability		16,800,000
Employee Stock Purchase Plan (ESPP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted		44,000	45,000
Volatility factor		22.00%	23.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		0.08%	0.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		6 months	6 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		1.70%	1.30%
Common stock reserved for issuance		750,000
Cash proceeds from the participating employees		2,000,000	1,900,000	1,600,000
Allocated Share-based Compensation Expense		500,000	500,000	500,000
Employee Stock Purchase Plan (ESPP) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period during which purchased shares must be held, months		6 months
Employee Stock Purchase Plan (ESPP) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair market value of the common stock at the grant date		85.00%
Market Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		101,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		50.00%
Share-based Compensation Arrangement by Share-based Payment Award, total fair value		8,300,000
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Grant Date Fair Value		$ 82.67
Volatility factor		39.70%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		1.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		4 years 0 months 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		1.10%
Market Stock Units [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		0.00%
Market Stock Units [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years		5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		200.00%
Performance Cash [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years		3 years
Share-based Compensation Arrangement by Share-based Payment Award, total fair value		3,800,000	2,600,000	1,100,000
Deferred Compensation Liability, Current and Noncurrent		4,400,000	1,600,000	500,000
Aggregate Target Value		$ 4,400,000	$ 2,700,000	$ 1,600,000
Performance Cash [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		0.00%
Performance Cash [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		200.00%
Restricted Common Equity In Cornerstone Brands [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years		4 years

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Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Stockholders' Equity [Abstract]
Issuance of common stock from stock-based compensation awards, tax benefit	$ 8,293	$ 9,788	$ 18,900

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
Net income	$ 172,984	[1],[2]	$ 178,449	[3]	$ 130,675	[4]
Other comprehensive (loss) income, net of tax:
Change in fair value of derivative instrument	(227)		825		(471)
Other comprehensive (loss) income, net of tax	(227)		825		(471)
Comprehensive income	$ 172,757		$ 179,274		$ 130,204

[1] (b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

[2] (a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

[3] (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

[4] (a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

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Fair Value Measurements (Note)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value assumptions are made at a specific point in time and changes in underlying assumptions could significantly affect these estimates. HSNi applies the following framework for measuring fair value which is based on a three-level hierarchy:

Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of these items. The following table summarizes the fair value of HSNi's other financial assets and liabilities which are measured at fair value on a recurring basis in the consolidated balance sheets (in thousands):

	December 31, 2014
		Total Fair Value and Carrying Value on Balance Sheet		Fair Value Measurement Category
				Level 1		Level 2		Level 3
Assets:
Interest rate swap		$	208	$	—	$	208	$	—

	December 31, 2013
		Total Fair Value and Carrying Value on Balance Sheet		Fair Value Measurement Category
				Level 1		Level 2		Level 3
Assets:
Interest rate swap		$	574	$	—	$	574	$	—
Liabilities:
Contingent consideration		1,032		—		—		1,032

HSNi's interest rate swap was carried on the balance sheet at fair value as of December 31, 2014 and December 31, 2013. The swap was entered into for the purpose of hedging the variability of interest expense and interest payments on HSNi's long-term variable rate debt. The fair value is based on a valuation model which utilizes interest rate yield curves and credit spreads as the significant inputs to the model. These inputs are observable in active markets (level 2 criteria). HSNi considers credit risk associated with its own standing as well as the credit standing of any counterparties involved in the valuation of its financial instruments.

In connection with the 2012 acquisition of Chasing Fireflies, the purchase price included contingent consideration that was based on achieving specific annual performance targets or a cumulative three-year performance target for the three-year period ending December 31, 2014. During the year ended December 31, 2014, the performance targets were not achieved. Therefore, during the year ended December 31, 2014, HSNi adjusted the fair value of the contingent consideration to zero.

During the year ended December 31, 2013 Chasing Fireflies performance targets were not achieved and the fair value of the contingent consideration was decreased $3.6 million to $1.0 million at December 31, 2013. During the year ended December 31, 2013, HSNi also recognized a fair value adjustment of $3.0 million for indefinite-lived intangible assets related to the acquisition of Chasing Fireflies. The fair value of the intangible assets, consisting of trademarks and trade names, was determined using the relief from royalty method (level 3 criteria). Key inputs used in this calculation included revenue growth, discount, royalty and terminal growth rates. The net impact of the impairment charge and the contingent consideration adjustment was a reduction of expense of $0.6 million and is included in "General and administrative expense" in the accompanying consolidated statements of operations.

The following table summarizes the fair value of HSNi’s financial assets and liabilities which are carried at cost (in thousands):

	December 31, 2014
	Carrying Value		Fair Value		Fair Value Measurement Category
					Level 1		Level 2		Level 3
Term Loan	$	228,126	$	228,126	$	—	$	228,126	$	—

	December 31, 2013
	Carrying Value		Fair Value		Fair Value Measurement Category
					Level 1		Level 2		Level 3
Term Loan	$	240,625	$	240,625	$	—	$	240,625	$	—

The fair value of the term loan was estimated by discounting expected cash flows at the rates currently offered to HSNi for debt of the same remaining maturities (level 2 criteria).

HSNi measures certain assets, such as property and equipment and definite-lived intangible assets, at fair value on a non-recurring basis. These assets are recognized at fair value if they are deemed to be impaired. There were no fair value adjustments to the carrying values of HSNi's property and equipment and definite-lived intangible assets during December 31, 2014 or 2013.

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Valuation And Qualifying Accounts (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Allowance For Doubtful Accounts [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 16,863		$ 14,537		$ 13,127
Charges to Earnings	23,986		23,414		24,186
Charges to Other Accounts	(1,874)		(13)		137
Deductions	(23,899)	[1]	(21,101)	[1]	(22,639)	[1]
Balance at End of Period	18,824		16,863		14,537
Sales Return Accrual [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	40,072		40,554		39,563
Charges to Earnings	655,304		648,381		658,394
Charges to Other Accounts	0		0		(205)
Deductions	(654,587)		(648,863)		(657,608)
Balance at End of Period	40,789		40,072		40,554
Deferred Tax Valuation Allowance [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	1,495		5,293		14,274
Charges to Earnings	82		262		23
Charges to Other Accounts	0		4,060		9,004
Deductions	0		0		0
Balance at End of Period	$ 1,577		$ 1,495		$ 5,293

[1] Write-off of uncollectible accounts receivable

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Document And Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Feb. 25, 2015	Jun. 30, 2014	Dec. 31, 2013
Document And Entity Information [Abstract]
Entity Registrant Name	HSN, Inc.
Trading Symbol	HSNI
Entity Central Index Key	0001434729
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		52,430,415
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 1,889,878,508
Stock Price			$ 59.24
Common stock, par value	$ 0.01	$ 0.01		$ 0.01

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Earnings Per Share (Note)

12 Months Ended

Dec. 31, 2014

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, 2014, 2013 and 2012, 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, 2014, 2013 and 2012, 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,
	2014		2013		2012
Net income
Continuing operations	$	172,984	$	178,449	$	136,497
Discontinued operations	—		—		(5,822		)
Net income	$	172,984	$	178,449	$	130,675
Weighted average number of shares outstanding:
Basic	52,736		53,640		56,314
Dilutive effect of stock-based compensation awards	897		1,217		1,642
Diluted	53,633		54,857		57,956
Net income (loss) per share - basic:
Continuing operations	$	3.28	$	3.33	$	2.42
Discontinued operations	—		—		(0.10		)
Net income	$	3.28	$	3.33	$	2.32
Net income (loss) per share - diluted:
Continuing operations	$	3.23	$	3.25	$	2.36
Discontinued operations	—		—		(0.11		)
Net income	$	3.23	$	3.25	$	2.25
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	763		432		1,276

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Commitments And Contingencies (Future Minimum Payments Under Operating Lease Agreements) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Commitments And Contingencies [Abstract]
2015	$ 26,690
2016	23,797
2017	19,825
2018	16,337
2019	12,180
Thereafter	4,850
Total	$ 103,679

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Subsequent Events Subsequent Events (Details) (USD $)	3 Months Ended												12 Months Ended			0 Months Ended		1 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2014		Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014		Dec. 31, 2013		Sep. 30, 2013		Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Apr. 24, 2012	Jan. 27, 2015	Feb. 28, 2015	Mar. 31, 2015	Dec. 31, 2015
Line of Credit Facility [Line Items]
Secured debt	$ 228,126,000						$ 240,625,000						$ 228,126,000	$ 240,625,000
Dividends declared per common share (usd per share)	$ 0.35	[1]	$ 0.25	$ 0.25	$ 0.25	[2]	$ 0.25	[3]	$ 0.18	[4]	$ 0.18	$ 0.18	$ 1.10	$ 0.79	$ 0.555
Pro forma leverage ratio													1.8
Credit Agreement 1.25B [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Term													5 years
Syndicated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Secured debt																600,000,000
Debt Instrument, Term													5 years			5 years
Maximum borrowing capacity																850,000,000
Deferred Finance Costs, Net	2,400,000												2,400,000
Deferred Finance Costs, Noncurrent, Net																5,500,000
Maximum leverage ratio, required													3.00
Minimum interest coverage ratio, required													3.00
Syndicated Credit Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Secured debt	0						0						0	0		350,000,000
Syndicated Credit Agreement [Member] | Term Loan [Member]
Line of Credit Facility [Line Items]
Secured debt	228,126,000						240,625,000						228,126,000	240,625,000		250,000,000
Debt Instrument, Interest Rate, Effective Percentage	1.66%												1.66%
Syndicated Credit Agreement [Member] | Voting Equity Securities Of H S Ni U S Subsidiaries [Member]
Line of Credit Facility [Line Items]
Secured rate																100.00%
Syndicated Credit Agreement [Member] | Voting Equity Securities Of First Tier Subsidiaries [Member]
Line of Credit Facility [Line Items]
Secured rate																65.00%
Minimum [Member] | Syndicated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage																1.50%
Debt Instrument, Interest Rate, Effective Percentage																0.50%
Line of Credit Facility, Commitment Fee Percentage													0.25%
Maximum [Member] | Syndicated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage																2.25%
Debt Instrument, Interest Rate, Effective Percentage																1.25%
Line of Credit Facility, Commitment Fee Percentage													0.40%
Subsequent Event [Member]
Line of Credit Facility [Line Items]
Dividends, Cash																		524,000,000
Amortization of Financing Costs																				1,900,000
Dividends declared per common share (usd per share)																		$ 10.00	$ 0.35
Stock Repurchase Program, Authorized Amount																	4,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted																	452,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized																	943,000
Subsequent Event [Member] | Credit Agreement 1.25B [Member]
Line of Credit Facility [Line Items]
Secured debt																	1,250,000,000
Debt Instrument, Term																	5 years
Maximum borrowing capacity																	1,750,000,000
Deferred Finance Costs, Noncurrent, Net																	6,600,000
Maximum leverage ratio, required																	3.50
Minimum interest coverage ratio, required																	3.00
Subsequent Event [Member] | Credit Agreement 1.25B [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Secured debt																	750,000,000
Proceeds from Issuance of Debt																			200,000,000
Subsequent Event [Member] | Credit Agreement 1.25B [Member] | Term Loan [Member]
Line of Credit Facility [Line Items]
Secured debt																	500,000,000
Proceeds from Issuance of Debt																		300,000,000	200,000,000
Subsequent Event [Member] | Credit Agreement 1.25B [Member] | Voting Equity Securities Of H S Ni U S Subsidiaries [Member]
Line of Credit Facility [Line Items]
Secured rate																	100.00%
Subsequent Event [Member] | Credit Agreement 1.25B [Member] | Voting Equity Securities Of First Tier Subsidiaries [Member]
Line of Credit Facility [Line Items]
Secured rate																	65.00%
Subsequent Event [Member] | Syndicated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Write off of Deferred Debt Issuance Cost																			$ 500,000
Subsequent Event [Member] | Minimum [Member] | Credit Agreement 1.25B [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage																	1.50%
Debt Instrument, Interest Rate, Effective Percentage																	0.50%
Line of Credit Facility, Commitment Fee Percentage																				0.20%
Subsequent Event [Member] | Maximum [Member] | Credit Agreement 1.25B [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage																	2.25%
Debt Instrument, Interest Rate, Effective Percentage																	1.25%
Line of Credit Facility, Commitment Fee Percentage																				0.40%

[1] (d)The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share by $0.06.

[2] (a)The first quarter of 2014 includes a $3.1 million settlement with the Consumer Product Safety Commission.

[3] (c)The fourth quarter of 2013 includes a $3.6 million reduction to a previously recorded contingent consideration obligation and a $3.0 million impairment charge of intangible assets related to a 2012 acquisition resulting in a net expense reduction of $0.6 million, or $1.7 million net of taxes. These fair value adjustments increased diluted earnings per share by $0.03.

[4] (b)The third quarter of 2013 includes discrete tax benefits of $3.7 million which increased diluted earnings per share by $0.07.

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 159,985	$ 196,433
Accounts receivable, net of allowance of $18,824 and $16,863, respectively	317,785	265,115
Inventories	398,705	327,319
Deferred income taxes	32,668	29,761
Prepaid expenses and other current assets	44,728	48,630
Total current assets	953,871	867,258
Property and equipment, net	193,889	178,720
Intangible assets, net	261,962	262,460
Goodwill	9,858	9,858
Other non-current assets	12,614	19,627
TOTAL ASSETS	1,432,194	1,337,923
Current liabilities:
Accounts payable, trade	255,287	255,627
Current maturities of long-term debt	17,188	12,500
Accrued expenses and other current liabilities	241,074	207,984
Total current liabilities	513,549	476,111
Long-term debt, less current maturities	210,938	228,125
Deferred income taxes	88,787	88,034
Other long-term liabilities	16,579	16,572
Total liabilities	829,853	808,842
Commitments and contingencies (Note 13)
SHAREHOLDERS’ EQUITY:
Preferred stock $0.01 par value; 25,000,000 authorized shares; no issued shares	0	0
Common stock $0.01 par value; 300,000,000 authorized shares; 52,425,895 and 53,002,368 issued shares as of December 31, 2014 and 2013, respectively	524	530
Additional paid-in capital	1,710,581	1,810,072
Accumulated deficit	(1,108,891)	(1,281,875)
Accumulated other comprehensive income	127	354
Total shareholders’ equity	602,341	529,081
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 1,432,194	$ 1,337,923

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Property And Equipment (Note)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property And Equipment

PROPERTY AND EQUIPMENT

The balance of property and equipment, net, is as follows (in thousands):

	December 31,
	2014			2013
Capitalized software	$	223,436		$	215,893
Computer and broadcast equipment	89,739			85,521
Buildings and leasehold improvements	105,086			102,437
Furniture and other equipment	88,174			83,779
Projects in progress	30,794			12,528
Land and land improvements	10,541			10,460
	547,770			510,618
Less: accumulated depreciation and amortization	(353,881		)	(331,898		)
Total property and equipment, net	$	193,889		$	178,720

Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. There were no impairment charges related to HSNi's long-lived assets in fiscal 2014 or 2013. As we periodically reassess estimated future cash flows and asset fair values, changes in our estimates and assumptions may cause us to realize impairment charges in the future.

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Intangible Assets And Goodwill (Note)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets And Goodwill

INTANGIBLE ASSETS AND GOODWILL

HSNi assesses the impairment of goodwill and indefinite-lived identifiable intangible assets, principally trademarks and trade names, at least annually during the fourth quarter and whenever events or circumstances indicate that the carrying value may not be fully recoverable. In performing this review, HSNi has the option of performing a qualitative assessment to determine whether it is more likely than not that the fair values of the reporting unit and/or indefinite-lived intangible assets are less than the carrying values. If HSNi determines that it is not more likely that the fair value is less than its carrying value, then the goodwill and/or the indefinite-lived intangible assets are deemed to be not impaired and no further testing is required until the next annual test date (or sooner if conditions or events before that date raise concerns of potential impairment in the business). If HSNi determines that it is more likely than not that the fair value is less than its carrying value, then the quantitative goodwill and/or indefinite-lived intangible asset impairment tests (as discussed below) must be completed.

If necessary, HSNi performs a quantitative assessment of the fair values of its goodwill and intangible assets. If it is determined that the implied fair value of goodwill and/or indefinite-lived intangible assets is less than the carrying amount, an impairment charge, equal to the excess, is recorded. The implied fair value of goodwill is determined in the same manner as in a business combination. The estimated fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the estimated fair value of the reporting unit was the purchase price paid. The fair value of the reporting unit is determined by using a discounted cash flow analysis with consideration of an equity analysis based on the trading value of its common stock. The discounted cash flow analysis indicates the fair value of the reporting units based on the present value of the cash flows expected to be generated in the future. The equity analysis is based on the trading value of its common stock as of the valuation date or the average stock price over a range of dates prior to the valuation date, plus an estimated control premium. HSNi utilizes a relief from royalty method to assess the fair values of its trademarks and trade names.

In assessing fair value, HSNi considers, among other indicators, differences between estimated and actual cash flows and revenue streams; changes in the related discount, royalty and terminal growth rate; and the relationship between the trading price of its common stock and its per-share book value. Determining fair value requires the exercise of significant judgments. These factors used in the determination of fair value are sensitive to, among other things, changes in the retail consumer market and the general economy.

Intangible Assets

Intangible assets with indefinite lives relate principally to trade names and trademarks. Definite-lived intangible assets consist primarily of customer relationships which are amortized on an accelerated basis over their useful lives. When definite-lived intangible assets are sold or expire, the cost of the asset and the related accumulated amortization are eliminated and any gain or loss is recognized at such time.

The total balance of HSNi's intangible assets, net, is as follows (in thousands):

	December 31,
	2014		2013
Intangible assets with indefinite lives	$	261,808	$	261,809
Intangible assets with definite lives, net	154		651
Total intangible assets, net	$	261,962	$	262,460

In the fourth quarter of 2014, HSNi performed quantitative assessments of its indefinite-lived intangible assets and concluded there were no impairments. In the fourth quarter of 2013, HSNi performed qualitative and quantitative assessments (as applicable) of its intangible assets and concluded an adjustment was necessary related to trademarks associated with the 2012 acquisition of Chasing Fireflies. An impairment charge of $3.0 million was recorded in the fourth quarter of 2013 within the Cornerstone segment and is included in "General and administrative" expense in the accompanying consolidated statements of operations.

Amortization expense for the definite-lived intangible assets was $0.6 million, $1.4 million, and $1.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. At December 31, 2014 and 2013, the following is information on intangible assets with definite lives (in thousands):

	Cost		Accumulated Amortization			Net		Weighted Average Amortization Life (Years)
As of December 31, 2014	$	3,859	$	(3,705	)	$	154	6.1
As of December 31, 2013	$	3,800	$	(3,149	)	$	651	1.1

Goodwill

In the second quarter of 2012, $9.9 million of goodwill was recorded in connection with the acquisition of Chasing Fireflies which was allocated to the Cornerstone reporting unit. No adjustments have been made to the goodwill balance subsequent to the acquisition. Based on the quantitative assessment performed in the fourth quarter of 2014 and the qualitative assessment performed in the fourth quarter of 2013, HSNi concluded there was no impairment of its goodwill.

The following tables present the balance of goodwill by reporting unit, including changes in the carrying amount of goodwill, for the years ended December 31, 2014 and 2013 (in thousands):

	Gross Balance as of January 1, 2014		Accumulated Impairment			Net Balance as of January 1, 2014		Additions		Impairment		Net Balance as of December 31, 2014
HSN	$	2,391,594	$	(2,391,594	)	$	—	$	—	$	—	$	—
Cornerstone	502,464		(492,606		)	9,858		—		—		9,858
Total	$	2,894,058	$	(2,884,200	)	$	9,858	$	—	$	—	$	9,858
	Gross Balance as of January 1, 2013		Accumulated Impairment			Net Balance as of January 1, 2013		Additions		Impairment		Net Balance as of December 31, 2013
HSN	$	2,391,594	$	(2,391,594	)	$	—	$	—	$	—	$	—
Cornerstone	502,464		(492,606		)	9,858		—		—		9,858
Total	$	2,894,058	$	(2,884,200	)	$	9,858	$	—	$	—	$	9,858

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Supplemental Cash Flow Information (Note)

12 Months Ended

Dec. 31, 2014

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental Disclosure of Cash Flow Information:

	Year Ended December 31,
	2014			2013			2012
	(in thousands)
Cash paid during the period for:
Income tax payments	$	87,787		$	92,502		$	52,709
Income tax refunds	(482		)	(2,061		)	(10		)
Interest payments	6,142			5,230			29,985
Non-cash investing activities:
Capital expenditures incurred but paid in advance	9,100			—			—
Non-cash financing activities:
Effective portion of change in interest rate swap	(1,581		)	1,296			755

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Stock-Based Awards (Note)

12 Months Ended

Dec. 31, 2014

Share-based Compensation [Abstract]

Stock-Based Awards

STOCK-BASED AWARDS

Stock-based compensation expense is included in the following line items in the accompanying consolidated statements of operations (in thousands):

	Year Ended December 31,
	2014			2013			2012
Selling and marketing	$	4,736		$	3,793		$	3,515
General and administrative	10,870			10,250			15,541
Stock-based compensation expense before income taxes	15,606			14,043			19,056
Income tax benefit	(5,685		)	(4,835		)	(6,494		)
Stock-based compensation expense after income taxes	$	9,921		$	9,208		$	12,562

As of December 31, 2014, there was approximately $22.3 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is currently expected to be recognized on a straight-line basis over a weighted average period of approximately 2.1 years.

Second Amended and Restated 2008 Stock and Annual Incentive Plan

The Second Amended and Restated 2008 Stock and Annual Incentive Plan, as amended (the “Plan”), authorizes the issuance of 8.0 million shares of HSNi common stock for new awards granted by HSNi. The purpose of the Plan is to assist HSNi in attracting, retaining and motivating officers, employees, directors and consultants, and to provide HSNi with the ability to provide incentives more directly linked to the profitability of HSNi’s business and increases in shareholder value. As of December 31, 2014, there were approximately 2.6 million shares of common stock available for grants under the Plan.

HSNi can grant restricted stock, restricted stock units ("RSUs"), market stock units ("MSUs"), stock options, stock appreciation rights (“SARs”), dividend equivalents and other stock-based awards under the Plan. Stock-based awards have a maximum term of 10 years. The exercise price of options and SARs granted under the Plan is required to be at, or above, the fair market value of HSNi’s stock on the date of grant. RSUs have rights to receive dividend equivalents that vest at the same time the underlying RSUs vest once the requisite service has been rendered. HSNi elects to issue shares of its common stock for RSU vestings and SAR exercises net of the employees’ minimum tax withholding obligation. The payments made by HSNi to the taxing authorities for these taxes were $12.7 million, $14.4 million, and $18.2 million for the years ended December 31, 2014, 2013 and 2012, respectively.

In conjunction with a special cash dividend declared in the first quarter of 2015, as required by the anti-dilution provisions of the Plans, adjustments were made to outstanding equity awards as of the ex-dividend date to preserve their value following the dividend. For further discussion of the impact of the special cash dividend on the outstanding equity awards, see Note 21-Subsequent Events.

Restricted Stock Units

RSUs are awards that are denominated in a hypothetical equivalent number of shares of HSNi’s common stock. At the time of grant, HSNi determines if the RSUs will be settled in cash, stock or both. The value to the holder of the RSU is based upon the market value of HSNi’s stock when the RSUs vest. Compensation expense for RSUs granted under the Plan is measured at the grant date as the fair market value of HSNi’s common stock and expensed ratably over the vesting term. The RSUs are generally subject to service-based vesting over a term of 3 years to 5 years.

A summary of the status of the nonvested RSUs, as of December 31, 2014 and changes during the year ended December 31, 2014 is as follows:

	Number of RSUs		Weighted Average Grant Date Fair Value
Nonvested at January 1, 2014	623,709		$	40.25
Granted	238,620		55.06
Vested	(191,106	)	29.18
Forfeited	(69,644	)	47.62
Nonvested at December 31, 2014	601,579		48.88

The weighted average per share fair value of RSUs granted during the years ended December 31, 2014, 2013 and 2012 based on market prices of HSNi’s common stock on the grant date was $55.06, $58.83, and $36.51, respectively.

The total fair value of RSUs that vested during the years ended December 31, 2014, 2013 and 2012 and settled in HSNi common stock was $10.9 million, $36.2 million, and $33.9 million, respectively. HSNi realizes a tax benefit for RSUs held by its employees in the year in which the award vests. The tax benefit realized by HSNi related to RSUs was approximately $4.2 million, $12.5 million, and $10.9 million for the years ended December 31, 2014, 2013 and 2012, respectively.

As of December 31, 2014, there was approximately $16.0 million of unrecognized compensation cost, net of estimated forfeitures, related to RSUs, which is currently expected to be recognized on a straight-line basis over a weighted average period of approximately 2.3 years.

Stock Options and SARs

SARs are similar to traditional stock options, except, upon exercise, holders of SARs will only receive a value equal to the spread between the current market price per share of the common stock and the exercise price. The SARs granted by HSNi may be settled in cash or common stock of HSNi, in the sole discretion of HSNi. All SARs exercised by employees of HSNi have been settled in stock. For all SARs currently outstanding, HSNi intends to settle these awards in stock upon exercise. The exercise price for awards granted under the Plan is required to be priced at, or above, the fair market value of HSNi’s stock at the date of grant. Awards typically vest ratably over a term of 3 years.

A summary of the status of the outstanding stock options and SARs as of December 31, 2014 is as follows:

	Number of options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2014	2,580,889		$	34.15
Granted	423,579		55.05
Exercised	(650,740	)	24.34
Forfeited	(39,528	)	54.70
Expired	(17,520	)	17.63
Outstanding at December 31, 2014 (1)	2,296,680		40.54		5.3	$	81,429,314
Vested and expected to vest at December 31, 2014	2,223,860		40.04		5.2	$	79,976,327
Exercisable at December 31, 2014	1,598,089		35.07		3.9	$	65,406,938

(1) Approximately 0.3 million stock options outstanding as of December 31, 2014 were held by employees of the other Spincos.

The aggregate intrinsic value in the table above represents the pre-tax difference between the closing price of HSNi’s common stock on December 31, 2014 of $76.00 and the exercise price for all “in the money” awards at December 31, 2014. This amount changes based on the fair market value of HSNi’s common stock. The intrinsic value of the stock options and SARs exercised during the years ended December 31, 2014, 2013 and 2012 was approximately $23.4 million, $19.3 million, and $45.7 million, respectively. Cash received from stock option exercises for the years ended December 31, 2014, 2013 and 2012 was $0.6 million, $6.5 million, and $19.1 million, respectively. The tax benefit realized from stock option exercises for the years ended December 31, 2014, 2013 and 2012 was $8.8 million, $7.3 million, and $11.7 million, respectively.

The fair value of each stock option and SAR award, which HSNi intends to settle in stock, is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates various assumptions, including expected volatility and expected term. Expected stock price volatilities are estimated based on HSNi's historical volatility and the historical and implied volatilities of comparable publicly-traded companies. The risk-free interest rates are based on U.S. Treasury yields for notes with comparable terms as the awards in effect at the grant date. The expected term of options and SARs granted is based on an analysis of historical employee termination rates and option exercise patterns, giving consideration to expectations of future employee behavior. Dividends yields are estimated based on HSNi's historical and anticipated dividend payments.

The weighted average assumptions used in the Black-Scholes option pricing model are as follows:

	Year Ended December 31,
	2014		2013		2012
Volatility factor	36.4	%	49.1	%	46.5	%
Risk-free interest rate	1.55	%	0.85	%	0.91	%
Expected term	4.7		4.8		5.0
Dividend yield	1.8	%	1.2	%	1.4	%

The weighted average fair values of stock options and SARs granted from the Plan during the years ended December 31, 2014, 2013 and 2012 at market prices equal to HSNi’s common stock on the grant date were $15.24, $22.57, and $12.96, respectively.

At the date of the Spin-off, HSNi granted approximately 719,000 stock options to its Chief Executive Officer at exercise prices greater than market value on the date of grant with a term of 10 years and graded vesting over 4 years. The weighted average exercise price and the weighted average fair value related to these grants were $39.84 and $3.36, respectively. All other awards granted under the Plan have exercise prices based on the fair market value of HSNi’s common stock at the date of grant.

As of December 31, 2014, there was approximately $6.3 million of unrecognized compensation cost, net of estimated forfeitures, related to stock options and SARs, which is currently expected to be recognized on a straight-line basis over a weighted average period of approximately 1.7 years.

The following table summarizes the information about stock options and SARs outstanding and exercisable as of December 31, 2014:

	Outstanding				Exercisable
	Number Outstanding  at December 31, 2014	Weighted Average Exercise  Price		Weighted Average Remaining Contractual Term in Years	Number Exercisable  at December 31, 2014	Weighted Average Exercise Price
$0.00 to $9.99	96,094	$	5.65	4.0	96,094	$	5.65
$10.00 to $19.99	136,836	17.74		3.7	136,836	17.74
$20.00 to $29.99	57,320	29.72		6.1	57,320	29.72
$30.00 to $39.99	959,121	34.92		3.9	848,201	34.82
$40.00 to $49.99	370,555	44.71		3.6	370,555	44.71
$50.00 to $59.99	676,754	56.72		8.7	89,083	59.19
	2,296,680				1,598,089

Performance-Based Awards

During the first quarter of 2010, HSNi implemented a performance-based equity compensation program for certain key members of Cornerstone’s management. The amount payable was based on the extent to which certain pre-established performance goals for Cornerstone were achieved during the three years ending December 31, 2012. These equity awards were accounted for as liabilities which were remeasured each reporting period based on the probability of achievement of the performance conditions.The amount earned pursuant to the award at the end of the December 31, 2012 service period was $16.8 million which was settled in shares of HSNi common stock in the first quarter of 2013.

During the third quarter of 2013, HSNi granted approximately 101,000 MSUs to its Chief Executive Officer. The MSUs vest over respective 3 years and 5 years performance periods (50% for each period). Payout percentages range between 0% and 200% of the target award depending on the awards' market condition, the future price of HSNi's stock at the end of each performance period as compared to HSNi's stock price at the date of grant (as defined in the MSU agreement). The fair value of the MSUs was $8.3 million, or an average of $82.67 per unit, and is recognized on a graded-vested basis over the performance periods. The fair value was measured on the grant date by applying a Monte Carlo simulation pricing model which estimates the potential outcome of reaching the market condition based on simulated future stock prices. The weighted average assumptions used in the valuation of the MSUs were the following: volatility factor of 39.7%, risk-free interest rate of 1.00%, expected term of 4.0 years and dividend yield of 1.1%.

During the years ended December 31, 2014, 2013 and 2012, HSNi granted performance-based cash awards to certain executive employees (“Performance Cash”). Performance Cash vests over a three year performance period. Payout percentages range between 0% and 200% of the target award based on the award’s market condition, HSNi’s Total Shareholder Return relative to a peer group at the end of the performance period. Performance Cash is accounted for as a liability-based award as it will be settled in cash. For the years ended December 31, 2014, 2013 and 2012, HSNi granted Performance Cash with an aggregate target value of $4.4 million, $2.7 million and $1.6 million, respectively, with a grant date fair value of $3.8 million, $2.6 million and $1.1 million, respectively. Fair value is measured using a Monte-Carlo simulation and is remeasured at the end of each reporting period. As of December 31, 2014, 2013 and 2012, a liability of $4.4 million, $1.6 million and $0.5 million, respectively, was recorded for these awards.

Employee Stock Purchase Plan

The HSN, Inc. 2010 Employee Stock Purchase Plan (“ESPP”) was approved May 2010 and 750,000 shares of HSNi common stock were reserved for issuance under the ESPP. The ESPP permits employees to purchase shares of HSNi’s common stock during semi-annual purchase periods. Under the terms of the ESPP, eligible employees accumulate funds through payroll deductions and purchase shares at a price equal to the lesser of 85% of the fair market value of the common stock at the grant date or purchase date. All shares purchased under the ESPP must be held for a period of 6 months.

For the years ended December 31, 2014 and 2013, HSNi granted approximately 44,000 and 45,000 options, respectively, under the ESPP. The fair value of each option granted under the ESPP is determined on the grant date using the Black-Scholes option pricing model. The following are the weighted average assumptions used in the valuation of the ESPP options for the years ended December 31, 2014 and 2013:

	Year Ended December 31,
	2014		2013
Volatility factor	22.0	%	23.3	%
Risk-free interest rate	0.08	%	0.10	%
Expected term	0.5		0.5
Dividend yield	1.7	%	1.3	%

For the years ended December 31, 2014, 2013 and 2012, approximately $0.5 million of expense was included in the consolidated statements of operations. For the years ended December 31, 2014, 2013 and 2012, HSNi received cash proceeds from the participating employees of approximately $2.0 million, $1.9 million and $1.6 million, respectively.

Restricted Common Equity in Cornerstone Brands

In connection with the acquisition of Cornerstone Brands by IAC in 2005 certain members of Cornerstone Brand’s management were granted restricted common equity in Cornerstone Brands. These awards were granted on April 1, 2005 and were initially measured at fair value, which was amortized to expense over the vesting period. These awards vested ratably over 4 years, or earlier based upon the occurrence of certain prescribed events. The awards vested in non-voting restricted common shares of Cornerstone Brands. As of December 31, 2014, these awards were significantly out of the money and are not expected to result in any cost should HSNi exercise its call right.

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Shareholders' Equity (Details) (USD $)	3 Months Ended												12 Months Ended			34 Months Ended	1 Months Ended	3 Months Ended
	Dec. 31, 2014		Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014		Dec. 31, 2013		Sep. 30, 2013		Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jul. 16, 2014	Feb. 28, 2015	Mar. 31, 2015	Sep. 27, 2011	Jan. 27, 2015
Subsequent Event [Line Items]
Shares authorized under share repurchase program																			10,000,000
Dividends declared per common share (usd per share)	$ 0.35	[1]	$ 0.25	$ 0.25	$ 0.25	[2]	$ 0.25	[3]	$ 0.18	[4]	$ 0.18	$ 0.18	$ 1.10	$ 0.79	$ 0.555
Number of rights per outstanding share declared	1												1
Percentage of common stock to be acquired for exercise of the rights													15.00%
Discount on market price common stock for purchase of rights													50.00%
Accumulated other comprehensive income (loss) as of January 1,					$ 354,000							$ (471,000)	$ 354,000	$ (471,000)	$ 0
Other comprehensive (loss) income before reclassifications													(1,581,000)	1,329,000	(755,000)
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense in the consolidated statements of operations													1,215,000	0	0
Income tax (benefit) expense													139,000	(504,000)	284,000
Other comprehensive income, net of tax													(227,000)	825,000	(471,000)
Accumulated other comprehensive income (loss) as of December 31,	127,000						354,000						127,000	354,000	(471,000)
Stock Repurchased and Retired During Period, Shares													1,000,000	2,700,000
Stock Repurchased and Retired During Period, Value													55,500,000	146,900,000		451,000,000
Outstanding common stock acquired, average price													$ 54.87	$ 53.67		$ 45.10
Payments of Dividends													57,824,000	42,281,000	31,049,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Shares authorized under share repurchase program																				4,000,000
Dividends declared per common share (usd per share)																	$ 10.00	$ 0.35
Dividends, Cash																	$ 524,000,000

[1] (d)The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share by $0.06.

[2] (a)The first quarter of 2014 includes a $3.1 million settlement with the Consumer Product Safety Commission.

[3] (c)The fourth quarter of 2013 includes a $3.6 million reduction to a previously recorded contingent consideration obligation and a $3.0 million impairment charge of intangible assets related to a 2012 acquisition resulting in a net expense reduction of $0.6 million, or $1.7 million net of taxes. These fair value adjustments increased diluted earnings per share by $0.03.

[4] (b)The third quarter of 2013 includes discrete tax benefits of $3.7 million which increased diluted earnings per share by $0.07.

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Long-Term Debt (Note)

12 Months Ended

Dec. 31, 2014

Long-term Debt, Unclassified [Abstract]

Long-Term Debt

LONG-TERM DEBT

	December 31,
	2014			2013
Secured credit agreement expiring April 24, 2017:
Term loan	$	228,126		$	240,625
Revolving credit facility	—			—
Total long-term debt	228,126			240,625
Less: current maturities	(17,188		)	(12,500		)
Long-term debt, less current maturities	$	210,938		$	228,125

On April 24, 2012, HSNi entered into a $600 millionfive-year syndicated credit agreement ("Credit Agreement") which is secured by 100% of the voting equity securities of HSNi's U.S. subsidiaries and 65% of HSNi's first-tier foreign subsidiaries. Certain HSNi subsidiaries have unconditionally guaranteed HSNi's obligations under the Credit Agreement.  The Credit Agreement, which includes a $350 million revolving credit facility and a $250 million term loan, may be increased up to $850 million subject to certain conditions and expires April 24, 2017. HSNi capitalized $5.5 million in financing costs related to the Credit Agreement and is amortizing these costs to interest expense over the Credit Agreement's five-year term.

The Credit Agreement includes various covenants, limitations and events of default customary for similar facilities including a maximum leverage ratio of 3.00x and a minimum interest coverage ratio of 3.00x. HSNi was in compliance with all such covenants as of December 31, 2014, with a leverage ratio of 0.68x and an interest coverage ratio of 55.73x. The Credit Agreement also contains covenants that limit our ability and the ability of our subsidiaries to, among other things, incur additional indebtedness, pay dividends or make other distributions to third parties, repurchase or redeem our stock, make investments, sell assets, incur liens, enter into agreements restricting our subsidiaries' ability to pay dividends, enter into transactions with affiliates and consolidate, merge or sell all or substantially all of our assets. Dividends, loans or advances to HSNi by its subsidiaries are not restricted by the Credit Agreement.

Loans under the Credit Agreement bear interest at a per annum rate equal to LIBOR plus a predetermined margin that ranges from 1.50% to 2.25% or the Base Rate (as defined in the Credit Agreement) plus a predetermined margin that ranges from 0.50% to 1.25%.  HSNi can elect to borrow at either LIBOR or the Base Rate and the predetermined margin is based on HSNi's leverage ratio. The term loan interest rate as of December 31, 2014 was 1.66%.  HSNi pays a commitment fee ranging from 0.25% to 0.40% (based on the leverage ratio) on the unused portion of the revolving credit facility. 

The amount available to HSNi under the revolving credit facility portion of the Credit Agreement is reduced by the amount of outstanding letters of credit issued under the revolving credit facility, which totaled $10.6 million as of December 31, 2014. The ability to draw funds under the revolving credit facility is dependent upon meeting the aforementioned financial covenants. As of December 31, 2014, the amount that could be borrowed under the revolving credit facility, in consideration of the financial covenants and the outstanding letters of credit, was approximately $339.4 million. As of December 31, 2014, there was no outstanding balance due under the revolving credit facility.

Aggregate contractual maturities of long-term debt are as follows (in thousands):

Years Ending December 31,
2015	$	17,188
2016	18,750
2017	192,188
	$	228,126

On January 27, 2015, HSNi entered into a new $1.25 billionfive-year credit agreement with a syndicate of banks, replacing its existing $600 million Credit Agreement. See Note 21-Subsequent Events for discussion of the new credit agreement.

On July 28, 2008, HSNi issued $240 million of 11.25% senior notes due 2016 (the “Senior Notes”). The Senior Notes were fully redeemed on August 1, 2012 for $253.5 million, or 105.625% of the principal amount, plus accrued and unpaid interest to the redemption date, at which time the Senior Notes were no longer deemed to be outstanding, interest ceased to accrue thereon and all rights of the holders of the Senior Notes ceased to exist, except for the right to receive the redemption price. HSNi drew $250 million from its term loan on July 31, 2012 and used its cash on hand to fund the redemption. HSNi reported approximately $18.6 million in pre-tax charges primarily associated with redemption of the Senior Notes. These charges resulted from the redemption premium of $13.5 million and $5.1 million related to the write-off of unamortized issuance costs and original issue discount.

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Long-Term Debt (Narrative) (Details) (USD $)	12 Months Ended			0 Months Ended			3 Months Ended		0 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Apr. 24, 2012	Aug. 02, 2012 Rate	Jul. 28, 2008 Rate	Sep. 30, 2012	Mar. 31, 2015	Jan. 27, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Term loan, carrying value	$ 228,126,000	$ 240,625,000
Term Loan	228,126,000	240,625,000
Loss on debt extinguishment	0	0	(18,627,000)
Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Term loan, carrying value				600,000,000
Debt Instrument, Term	5 years			5 years
Maximum borrowing capacity				850,000,000
Deferred Finance Costs, Noncurrent, Net				5,500,000
Maximum leverage ratio, required	3.00
Minimum interest coverage ratio, required	3.00
Actual leverage ratio	0.68
Actual interest coverage ratio	55.73
Letters of Credit Outstanding, Amount	10,600,000
Credit Agreement 1.25B [Member]
Debt Instrument [Line Items]
Debt Instrument, Term	5 years
Eleven Point Two Five Percent Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes due 2016						240,000,000
Subordinated Borrowing, Interest Rate						11.25%
Repayments of Debt, Maturing in More than Three Months					253,500,000
Call Price					105.625%
Loss on debt extinguishment							18,600,000
Redemption Premium							13,500,000
Write off of Deferred Debt Issuance Cost							5,100,000
Voting Equity Securities Of H S Ni U S Subsidiaries [Member] | Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Secured rate				100.00%
Voting Equity Securities Of First Tier Subsidiaries [Member] | Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Secured rate				65.00%
Revolving Credit Facility [Member] | Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Term loan, carrying value	0	0		350,000,000
Line of Credit Facility, Remaining Borrowing Capacity	339,400,000
Term Loan [Member] | Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Term loan, carrying value	228,126,000	240,625,000		250,000,000
Term Loan				250,000,000
Debt Instrument, Interest Rate, Effective Percentage	1.66%
Minimum [Member] | Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				1.50%
Debt Instrument, Interest Rate, Effective Percentage				0.50%
Line of Credit Facility, Commitment Fee Percentage	0.25%
Maximum [Member] | Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				2.25%
Debt Instrument, Interest Rate, Effective Percentage				1.25%
Line of Credit Facility, Commitment Fee Percentage	0.40%
Subsequent Event [Member] | Syndicated Credit Agreement [Member]
Debt Instrument [Line Items]
Write off of Deferred Debt Issuance Cost								500,000
Subsequent Event [Member] | Credit Agreement 1.25B [Member]
Debt Instrument [Line Items]
Term loan, carrying value									1,250,000,000
Debt Instrument, Term									5 years
Maximum borrowing capacity									1,750,000,000
Deferred Finance Costs, Noncurrent, Net									6,600,000
Maximum leverage ratio, required									3.50
Minimum interest coverage ratio, required									3.00
Subsequent Event [Member] | Voting Equity Securities Of H S Ni U S Subsidiaries [Member] | Credit Agreement 1.25B [Member]
Debt Instrument [Line Items]
Secured rate									100.00%
Subsequent Event [Member] | Voting Equity Securities Of First Tier Subsidiaries [Member] | Credit Agreement 1.25B [Member]
Debt Instrument [Line Items]
Secured rate									65.00%
Subsequent Event [Member] | Revolving Credit Facility [Member] | Credit Agreement 1.25B [Member]
Debt Instrument [Line Items]
Term loan, carrying value									750,000,000
Subsequent Event [Member] | Term Loan [Member] | Credit Agreement 1.25B [Member]
Debt Instrument [Line Items]
Term loan, carrying value									$ 500,000,000
Subsequent Event [Member] | Minimum [Member] | Credit Agreement 1.25B [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage									1.50%
Debt Instrument, Interest Rate, Effective Percentage									0.50%
Line of Credit Facility, Commitment Fee Percentage										0.20%
Subsequent Event [Member] | Maximum [Member] | Credit Agreement 1.25B [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage									2.25%
Debt Instrument, Interest Rate, Effective Percentage									1.25%
Line of Credit Facility, Commitment Fee Percentage										0.40%

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Accrued Expenses And Other Current Liabilities (Note)

12 Months Ended

Dec. 31, 2014

Accrued Liabilities, Current [Abstract]

Accrued Expenses And Other Current Liabilities

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following (in thousands):

	December 31,
	2014		2013
Accrued sales returns	$	40,789	$	40,072
Accrued cable and satellite distribution fees	41,375		30,452
Accrued freight and fulfillment expenses	35,225		32,646
Accrued compensation and benefits	40,327		36,567
Other accrued expenses and current liabilities	83,358		68,247
Total accrued expenses and other current liabilities	$	241,074	$	207,984

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Segment Information (Note)

12 Months Ended

Dec. 31, 2014

Segment Reporting Information, Profit (Loss) [Abstract]

Segment Information

SEGMENT INFORMATION

HSNi presents its operating segments and related financial information in a manner consistent with how the chief operating decision maker and executive management view the businesses, how the businesses are organized as to segment management, and the focus of the businesses with regards to the types of products or services offered or the target market. HSNi has two operating segments, HSN and Cornerstone. The accounting policies of the segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. Intercompany accounts and transactions have been eliminated in consolidation.

HSNi’s primary performance metric is Adjusted EBITDA, which is defined as operating income excluding, if applicable: (1) non-cash charges including: (a) stock-based compensation expense, (b) amortization of intangibles, (c) depreciation and gains and losses on asset dispositions, and (d) goodwill, long-lived asset and intangible asset impairments; (2) pro forma adjustments for significant acquisitions; and (3) other significant items. Significant items, while periodically affecting our results, may vary significantly from period to period and have a disproportionate effect in a given period, thereby affecting the comparability of results. Adjusted EBITDA is not a measure determined in accordance with GAAP, and should not be considered in isolation or as a substitute for operating income, net income or any other measure determined in accordance with GAAP. Adjusted EBITDA is used as a measurement of operating efficiency and overall financial performance and HSNi believes it to be a helpful measure for those evaluating companies in the retail and media industries. Adjusted EBITDA has certain limitations in that it does not take into account the impact to HSNi’s consolidated statements of operations of certain expenses, gains and losses; including stock-based compensation, amortization of intangibles, depreciation, gains and losses on asset dispositions, asset impairment charges, acquisition-related accounting expenses and other significant items.

The following tables reconcile Adjusted EBITDA to operating income for HSNi’s operating segments and to HSNi’s consolidated net income (in thousands):

	Year Ended December 31, 2014
	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 from merchandise credits (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							(7,082		)
Income from continuing operations before income taxes							277,527
Income tax provision							(104,543		)
Net income							$	172,984

(a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

(b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

	Year Ended December 31, 2013
	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.

	Year Ended December 31, 2012
	HSN			Cornerstone			Total
Adjusted EBITDA	$	250,836		$	73,441		$	324,277
Stock-based compensation expense	(11,167		)	(7,889		)	(19,056		)
Depreciation and amortization	(26,486		)	(11,519		)	(38,005		)
Sales tax settlement	—			(7,750		)	(7,750		)
Loss on disposition of fixed assets	(680		)	(42		)	(722		)
Operating income	$	212,503		$	46,241		258,744
Total other expense, net							(38,874		)
Income from continuing operations before income taxes							219,870
Income tax provision							(83,373		)
Income from continuing operations							136,497
Loss from discontinued operations, net of tax							(5,822		)
Net income							$	130,675

(a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

Financial information by segment is as follows (thousands):

	Year Ended December 31,
	2014		2013		2012
Net sales:
HSN	$	2,476,088	$	2,312,382	$	2,265,026
Cornerstone	1,111,907		1,091,601		1,001,713
Total	$	3,587,995	$	3,403,983	$	3,266,739
Identifiable assets:
HSN	$	1,134,685	$	1,058,573	$	1,083,714
Cornerstone	297,509		279,350		248,238
Total	1,432,194		1,337,923		1,331,952
Capital expenditures:
HSN	$	32,307	$	36,156	$	33,566
Cornerstone	15,009		15,796		12,237
Total	$	47,316	$	51,952	$	45,803

HSNi does not report revenue from external customers for each product or each group of similar products as it is impracticable to do so. HSNi maintains operations principally in the United States with no long-lived assets and insignificant net sales in all other countries.

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Derivative Instruments (Note)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

HSNi uses derivatives in the management of its interest rate risk with respect to its variable rate debt. HSNi's strategy is to eliminate the cash flow risk on a portion of its variable rate debt caused by changes in the benchmark interest rate (LIBOR). Derivative instruments are not entered into for speculative purposes.

HSNi entered into a forward-starting interest rate swap agreement on December 20, 2012 with a notional amount of $187.5 million at a fixed rate of 0.8525%, resulting in an all-in fixed rate of 2.3525% based on HSNi's leverage ratio as of December 31, 2014. The interest rate swap took effect on January 31, 2014 with a maturity date in April 2017. Under this swap, HSNi pays at a fixed rate and receives payments at a variable rate based on one-month LIBOR. The swap effectively fixes the floating LIBOR-based interest of our outstanding LIBOR-based debt. The interest rate swap was designated and qualified as a cash flow hedge; therefore, the effective portion of the changes in fair value is recorded in accumulated other comprehensive income (loss). Any ineffective portions of the changes in fair value of the interest rate swap will be immediately recognized directly to earnings in the consolidated statements of operations. The change in fair value of the interest rate swap (inclusive of reclassifications to net income) was a loss of $0.2 million and a gain of $0.8 million, net of tax, for the years ended December 2014 and 2013, respectively, and were reflected in "Accumulated other comprehensive income (loss)" in the consolidated balance sheets. As of December 31, 2014, HSNi estimates that approximately $1.0 million of unrealized losses included in accumulated other comprehensive income related to this swap will be realized and reported in earnings within the next twelve months.

The fair value of the interest rate swap asset as of December 31, 2014 and December 31, 2013 was $0.2 million and $0.6 million, respectively, and was recorded in "Other non-current assets" in the consolidated balance sheets. See Note 9 for discussion of the fair value measurements concerning this interest rate swap.

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Fair Value Measurements (Narrative) (Details) (USD $)	3 Months Ended		12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013		Dec. 31, 2012
Fair Value Disclosures [Abstract]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value	$ 0	$ 1,032,000	$ 0	$ 1,032,000
Fair value adjustment to contingent consideration obligation			1,000,000	3,600,000
Asset impairment	3,000,000		0	3,040,000	[1]	0
Total fair value adjustments, before tax		$ 600,000		$ 600,000

[1] (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

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Discontinued Operations Discontinued Operations Narrative (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	May 31, 2012	Jun. 30, 2012
Smith Noble [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of interest	$ 5.5
After tax loss on sale of interest		6.0
Territory Ahead [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
After tax loss on sale of interest		$ (1.1)

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Fair Value Measurements (Fair Value Of Assets And Liabilities) (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Term loan, carrying value	$ 228,126,000	$ 240,625,000
Level 1 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Term loan, fair value	0	0
Level 2 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Term loan, fair value	228,126,000	240,625,000
Level 3 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Term loan, fair value	$ 0	$ 0

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Derivative Instruments (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 20, 2012
Derivative [Line Items]
Change in fair value of derivative instrument	$ (227,000)	$ 825,000	$ (471,000)
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, notional amount				187,500,000
Derivative, fixed interest rate				0.8525%
Interest rate, all inclusive	2.3525%
Change in fair value of derivative instrument	200,000	(800,000)
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months	1,000,000
Other Assets [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Liability, Fair Value, Gross Asset	$ 200,000	$ 600,000

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Property And Equipment (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Schedule Of Property And Equipment

The balance of property and equipment, net, is as follows (in thousands):

	December 31,
	2014			2013
Capitalized software	$	223,436		$	215,893
Computer and broadcast equipment	89,739			85,521
Buildings and leasehold improvements	105,086			102,437
Furniture and other equipment	88,174			83,779
Projects in progress	30,794			12,528
Land and land improvements	10,541			10,460
	547,770			510,618
Less: accumulated depreciation and amortization	(353,881		)	(331,898		)
Total property and equipment, net	$	193,889		$	178,720

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Intangible Assets And Goodwill (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended				3 Months Ended
	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2013		Dec. 31, 2012	Jun. 30, 2012
Acquired Indefinite-lived Intangible Assets [Line Items]
Asset impairment	$ 3,000	$ 0	$ 3,040	[1]	$ 0
Goodwill, Acquired During Period		0	0
Chasing Fireflies, LLC [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill, Acquired During Period						$ 9,900

[1] (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

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Commitments And Contingencies (Note)

12 Months Ended

Dec. 31, 2014

Commitments And Contingencies [Abstract]

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, HSNi is a party to various audits, claims and lawsuits. These audits or litigation may relate to claims involving property, personal injury, contract, intellectual property (including patent infringement), sales tax, regulatory compliance, employment matters and other claims. HSNi establishes reserves for specific legal or tax compliance matters that it has determined the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where it believes an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that an unfavorable resolution of claims against HSNi, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on its liquidity, results of operations, financial condition or cash flows, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future and an unfavorable resolution of such a proceeding could have a material impact. Moreover, any claims or regulatory actions against HSNi, whether meritorious or not, could be time-consuming, result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources.

HSNi leases a satellite transponder, warehouse and office space, equipment and services used in connection with its operations under various operating leases, many of which contain escalation clauses.

Future minimum payments under operating lease agreements are as follows (in thousands):

Years Ending December 31,
2015	$	26,690
2016	23,797
2017	19,825
2018	16,337
2019	12,180
Thereafter	4,850
Total	$	103,679

Expenses charged under these agreements were $25.1 million, $23.1 million, and $22.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, and were included in "General and administrative" expense in the accompanying consolidated statements of operations.

HSNi also has funding commitments that could potentially require its performance in the event of demands by third parties or contingent events, as follows (in thousands):

	Amount of Commitments Expiration Per Period
	Total Amounts Committed		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
Letters of credit and surety bonds	$	14,253	$	14,193	$	60	$	—	$	—
Purchase obligations	101,848		78,964		15,074		7,810		—
Total commercial commitments	$	116,101	$	93,157	$	15,134	$	7,810	$	—

The letters of credit (“LOCs”) primarily consist of trade LOCs, which are used for inventory purchases. Trade LOCs are guarantees of payment based upon the delivery of goods. The surety bonds primarily consist of customs bonds, which relate to the import of merchandise into the United States.

The purchase obligations primarily relate to cable contracts and include obligations for future cable distribution and commission guarantees.

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Acquisition (Note)

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Acquisition

ACQUISITION

In April 2012, HSNi, through Cornerstone, acquired substantially all of the assets and liabilities of Chasing Fireflies, LLC, a leading direct-to-consumer premium children's and family lifestyle brand. The purchase price was $22.9 million in cash and contingent consideration valued at $6.5 million as of the acquisition date. The fair value of the contingent consideration was estimated by applying a probability-weighted income approach. The acquisition was accounted for as a business combination and the total purchase consideration was assigned to the assets acquired, primarily inventory and other assets totaling $8.6 million and liabilities assumed totaling $2.6 million, at their estimated fair value as of the acquisition date. The allocation of the identifiable intangible assets and goodwill included $13.5 million primarily for trade names and customer relationships and $9.9 million for goodwill. Proforma information was not presented for this acquisition as it was not material to HSNi's consolidated results of operations or financial position.

Chasing Fireflies did not achieve the performance targets to earn the outstanding contingent consideration for the years ended December 31, 2014 and December 31, 2013; therefore, HSNi reduced the fair value of the contingent consideration by $1.0 million and $3.6 million, respectively, which was included in "General and administrative expense" in the accompanying consolidated statements of operations.

While performing its annual impairment testing in the fourth quarter of fiscal 2013 for HSNi's goodwill and indefinite-lived intangible assets, HSNi determined the fair value of the indefinite-lived intangible assets from the Chasing Fireflies acquisition was lower than its carrying value; therefore, an impairment charge of $3.0 million was recorded during the fourth quarter of fiscal 2013 and was included in "General and administrative expense" in the accompanying consolidated statements of operations. See Note 3 for a further discussion on goodwill and indefinite-lived intangible assets.

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Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies (Schedule Of Accounts Receivable, Net) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 317,785	$ 265,115
Other Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	28,307	20,685
Credit card companies [Member] | Trade Accounts Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	17,865	21,447
Flexpay and other customer-related [Member] | Trade Accounts Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 271,613	$ 222,983

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Expense (Benefit), Continuing Operations [Abstract]

Components Of Provision For Income Taxes

The components of the provision for income taxes are as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Current income tax provision:
Federal	$	(96,269	)	$	(81,521	)	$	(76,992	)
State	(10,289		)	(9,990		)	(8,904		)
Current income tax provision	(106,558		)	(91,511		)	(85,896		)
Deferred income tax (provision) benefit:
Federal	1,468			(6,489		)	1,814
State	547			308			709
Deferred income tax (provision) benefit	2,015			(6,181		)	2,523
Income tax provision	$	(104,543	)	$	(97,692	)	$	(83,373	)

Schedule of Deferred Tax Assets and Liabilities

	December 31,
	2014			2013
Deferred tax assets:
Provision for accrued expenses	$	34,987		$	33,647
Inventories	13,969			13,125
Stock-based compensation	12,072			10,888
Net operating losses	1,705			1,531
Other	4,098			4,078
Total deferred tax assets	66,831			63,269
Less valuation allowance	(1,577		)	(1,495		)
Net deferred tax assets	65,254			61,774
Deferred tax liabilities:
Intangible and other assets	(92,267		)	(91,018		)
Prepaid expenses	(12,890		)	(13,574		)
Property and equipment	(16,216		)	(15,455		)
Total deferred tax liabilities	(121,373		)	(120,047		)
Net deferred tax liability	$	(56,119	)	$	(58,273	)

Reconciliation Of Income Tax Provision

A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Income tax provision at the federal statutory rate of 35%	$	(97,135	)	$	(96,649	)	$	(76,955	)
State income taxes, net of effect of federal tax benefit	(6,306		)	(6,293		)	(5,327		)
Other, net	(1,102		)	5,250			(1,091		)
Income tax provision	$	(104,543	)	$	(97,692	)	$	(83,373	)

Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, is as follows (in thousands):

	2014		2013			2012
Balance at beginning of year	$	910	$	682		$	664
Additions based on tax positions related to the current year	525		417			—
Additions for tax positions of prior years	576		—			18
Reductions for tax positions of prior years	—		(189		)	—
Balance at end of year	$	2,011	$	910		$	682

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 18,824	$ 16,863
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized shares	25,000,000	25,000,000
Preferred stock, issued shares	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	300,000,000	300,000,000
Common stock, issued shares	52,425,895	53,002,368

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Quarterly Results (Unaudited) (Schedule Of Quarterly Results) (Details) (USD $)	3 Months Ended												12 Months Ended
	Dec. 31, 2014		Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014		Dec. 31, 2013		Sep. 30, 2013		Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Quarterly Financial Data [Abstract]
Net sales	$ 1,117,894,000	[1]	$ 837,477,000	$ 855,204,000	$ 777,420,000	[2]	$ 1,019,835,000	[3]	$ 798,890,000	[4]	$ 812,606,000	$ 772,651,000	$ 3,587,995,000		$ 3,403,983,000		$ 3,266,739,000
Gross Profit	381,737,000	[1]	302,415,000	313,135,000	275,774,000	[2]	352,300,000	[3]	288,590,000	[4]	308,777,000	280,147,000	1,273,062,000		1,229,815,000		1,183,724,000
Operating Income (Loss)	109,406,000	[1]	65,968,000	67,367,000	41,868,000	[2]	97,752,000	[3]	61,085,000	[4]	71,299,000	52,518,000	284,609,000	[5],[6]	282,654,000	[7]	258,744,000	[8]
Income from continuing operations	68,331,000	[1]	39,531,000	40,940,000	24,182,000	[2]	61,573,000	[3]	42,052,000	[4]	43,271,000	31,553,000	172,984,000		178,449,000		136,497,000	[8]
Loss from discontinued operations, net of tax	0	[1]	0	0	0	[2]	0	[3]	0	[4]	9,000	(9,000)	0		0		(5,822,000)
Net income	68,331,000	[1]	39,531,000	40,940,000	24,182,000	[2]	61,573,000	[3]	42,052,000	[4]	43,280,000	31,544,000	172,984,000	[5],[6]	178,449,000	[7]	130,675,000	[8]
Basic (usd per share)	$ 1.30	[1]	$ 0.75	$ 0.77	$ 0.45	[2]	$ 1.16	[3]	$ 0.79	[4]	$ 0.81	$ 0.58	$ 3.28		$ 3.33		$ 2.42
Diluted (usd per share)	$ 1.28	[1]	$ 0.74	$ 0.76	$ 0.45	[2]	$ 1.14	[3]	$ 0.77	[4]	$ 0.79	$ 0.56	$ 3.23		$ 3.25		$ 2.36
Basic (usd per share)	$ 1.30	[1]	$ 0.75	$ 0.77	$ 0.45	[2]	$ 1.16	[3]	$ 0.79	[4]	$ 0.81	$ 0.58	$ 3.28		$ 3.33		$ 2.32
Diluted (usd per share)	$ 1.28	[1]	$ 0.74	$ 0.76	$ 0.45	[2]	$ 1.14	[3]	$ 0.77	[4]	$ 0.79	$ 0.56	$ 3.23		$ 3.25		$ 2.25
Dividends declared per common share (usd per share)	$ 0.35	[1]	$ 0.25	$ 0.25	$ 0.25	[2]	$ 0.25	[3]	$ 0.18	[4]	$ 0.18	$ 0.18	$ 1.10		$ 0.79		$ 0.555
CPSC settlement					3,100,000								3,100,000	[5],[6]
Discrete tax benefit									3,700,000
Increase (decrease) in earnings per share, diluted							$ (0.03)		$ (0.07)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings							3,600,000						0		3,600,000	[7]	0
Asset impairment	3,000,000												0		3,040,000	[7]	0
Total fair value adjustments, before tax							600,000								600,000
Total fair value adjustments, net of tax							1,700,000
Breakage income from merchandise credits	5,000,000												4,962,000	[5],[6]
Gift card breakage revenue, net of tax	$ 3,100,000
Revenue gift card breakage per share	$ 0.06

[1] (d)The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share by $0.06.

[2] (a)The first quarter of 2014 includes a $3.1 million settlement with the Consumer Product Safety Commission.

[3] (c)The fourth quarter of 2013 includes a $3.6 million reduction to a previously recorded contingent consideration obligation and a $3.0 million impairment charge of intangible assets related to a 2012 acquisition resulting in a net expense reduction of $0.6 million, or $1.7 million net of taxes. These fair value adjustments increased diluted earnings per share by $0.03.

[4] (b)The third quarter of 2013 includes discrete tax benefits of $3.7 million which increased diluted earnings per share by $0.07.

[5] (b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

[6] (a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

[7] (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

[8] (a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

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Summary Of Significant Accounting Policies (Note)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue Recognition

Revenue primarily consists of merchandise sales and is reduced by incentive discounts and sales returns to arrive at net sales. Revenue is recorded when delivery to the customer has occurred. Delivery is considered to have occurred when the customer takes title and assumes the risks and rewards of ownership, which is on the date of shipment. HSNi's sales policy allows customers to return merchandise for a full refund or exchange, subject to pre-established time restrictions. Allowances for returned merchandise and other adjustments (including reimbursed shipping and handling costs) are provided based upon past experience. Actual returns of product sales have not materially varied from estimates in any of the periods presented. HSNi's estimated return rates were 16.3%, 17.0%, and 17.8% in 2014, 2013, and 2012, respectively. Sales taxes collected are not included in revenue.

HSN issues merchandise credits primarily for products returned outside of HSN’s normal return policy. Revenues from these credits are recognized when (1) redeemed by the customer, or (2) it is determined that it is not probable the Company has an obligation to escheat the value of the unredeemed credit to relevant jurisdictions and the likelihood of the credit being redeemed by the customer is remote (“breakage”). During the year ended December 31, 2014, the Company recognized $5.0 million of revenue for merchandise credit breakage. This was the first period during which the Company recognized merchandise credit breakage and, therefore, it included breakage income related to merchandise credits issued since inception of this program. Merchandise credit breakage is estimated based upon an analysis of actual historical redemption patterns and is included in "Net sales" in the accompanying consolidated statements of operations.

Shipping and Handling Fees and Costs

Shipping and handling fees billed to customers are recorded as revenue. The costs associated with shipping goods to customers are recorded as cost of sales.

Cash and Cash Equivalents

Cash and cash equivalents include cash and money market instruments with an original maturity of three months or less when purchased and are stated at cost.

Accounts Receivable

Accounts receivable are principally comprised of amounts due from customers and credit card companies, net of an allowance for doubtful accounts. HSN provides extended payment terms to its customers on certain products known as Flexpay. Revenue is recorded when delivery to the customer has occurred, at which time HSN collects the first payment, sales tax and all shipping and handling fees. Subsequent collections are due from customers in 30-day increments, payable automatically upon authorization of the customer’s method of payment. HSN accepts most credit and select debit cards. HSN offers Flexpay programs ranging from two to six interest-free monthly payments. Flexpay receivables consist of outstanding balances owed by customers, less a reserve for uncollectible balances.

The balance of accounts receivable, net of allowances, is as follows (in thousands):

	December 31,
	2014		2013
Flexpay and other customer-related	$	271,613	$	222,983
Credit card companies	17,865		21,447
Other	28,307		20,685
Accounts receivable, net	$	317,785	$	265,115

Accounts receivable outstanding longer than the contractual payment terms are considered past due. HSNi determines its allowance by considering a number of factors, including the length of time accounts receivable are past due, HSNi’s previous loss history and the condition of the general economy. HSNi writes off accounts receivable when they are deemed uncollectible.

Inventories

Inventories, which primarily consist of finished goods, are valued at the lower of cost or market, with the cost being determined based upon the first-in, first-out method. Cost includes inbound freight and duties and, in the case of HSN, certain allocable costs, including certain warehouse costs. Inventories include approximately $6.0 million of these allocable general and administrative overhead costs at December 31, 2014 and 2013, and approximately $24.0 million, $23.9 million, and $24.3 million of such costs were included in the accompanying consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012, respectively. Market is determined on the basis of net realizable value, giving consideration to obsolescence and other factors.

Property and Equipment

Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance and any gains or losses on dispositions are included in the consolidated statement of operations.

Depreciation is recorded on a straight-line basis to allocate the cost of depreciable assets to operations over the shorter of the estimated service life or lease period.

Asset Category	Depreciation Period
Computer and broadcast equipment and capitalized software	3 to 6 Years
Buildings, leasehold improvements and land improvements	3 to 40 Years
Furniture and other equipment	2 to 10 Years

HSNi capitalizes certain qualified costs incurred in connection with the development of internal use software. Capitalization of internal use software costs begins when the preliminary project stage is completed; management with the relevant authority authorizes and commits to the funding of the software project; and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalized internal use software is amortized on a straight-line basis over the estimated useful life of the software, not to exceed five years. Capitalized software costs, net of accumulated amortization, totaled $37.9 million and $37.3 million at December 31, 2014 and 2013, respectively, and are included in “Property and equipment, net” in the accompanying consolidated balance sheets. Amortization expense related to the capitalized software costs was $18.3 million, $15.1 million and $12.7 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in "Depreciation and amortization" expense in the accompanying consolidated statements of operations.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill acquired in business combinations is assigned to the reporting units that are expected to benefit from the combination as of the acquisition date. Goodwill and indefinite-lived intangible assets, primarily trade names and trademarks, are assessed annually for impairment as of October 1 or upon the occurrence of certain events or substantive changes in circumstances. See Note 3 for a further discussion on goodwill and indefinite-lived intangible assets.

Long-Lived Assets and Intangible Assets with Definite Lives

Long-lived assets, including property and equipment and intangible assets with definite lives, are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is deemed to not be recoverable, an impairment loss is recorded as the amount by which the carrying amount of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is generally recorded on a straight-line or accelerated basis over their estimated lives.

Cable and Satellite Distribution Fees

Cable and satellite distribution fees relate to fees paid in connection with cable and satellite contracts for carriage of HSN’s programming. Fees that are paid upfront for annual contracts are included in "Prepaid expenses and other current assets" in the accompanying consolidated balance sheets and are amortized on a straight-line basis over the terms of the respective contracts. Unpaid fees are accrued and included in the line item “Accrued expenses and other current liabilities” in the accompanying consolidated balance sheets. Cable and satellite distribution fees and amortization are included in “Selling and marketing" expense in the accompanying consolidated statements of operations.

Advertising

Advertising costs include catalog production and distribution costs. Advertising costs are expensed in the period incurred, except for Cornerstone’s direct costs of producing and distributing its catalogs, which are capitalized. These capitalized costs are amortized over the expected future revenue stream, which is generally three months from the date catalogs are mailed. Such capitalized costs totaled $18.0 million and $18.8 million as of December 31, 2014 and 2013, respectively, and are included in “Prepaid expenses and other current assets” in the accompanying consolidated balance sheets. Of these amounts, $9.6 million and $13.0 million as of December 31, 2014 and 2013, respectively, related to catalogs that had not yet been mailed. Advertising expense was $279.6 million, $268.0 million, and $245.0 million for the years ended December 31, 2014, 2013 and 2012, respectively, and were included in "Selling and marketing" expense in the accompanying consolidated statements of operations.

Income Taxes

HSNi accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the deferred tax asset will not be realized. HSNi records interest and penalties on potential tax contingencies as a component of income tax expense and records interest net of any applicable related income tax benefit.

HSNi recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on its technical merits. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement.

Stock-Based Compensation

HSNi recognizes compensation expense for stock-based awards, reduced for estimated forfeitures, on a straight-line basis over the requisite service period for awards with service conditions and on a graded-vested basis for awards with market or performance conditions. Tax benefits resulting from tax deductions in excess of the stock-based compensation expense recognized in the consolidated statements of cash flows are reported as a component of financing cash flows. HSNi issues new shares to satisfy equity vestings and exercises. See Note 11 for a further description of our stock compensation plans.

Earnings Per Share

HSNi computes basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the treasury stock method.

Derivative Instruments

HSNi uses derivatives in the management of interest rate risk with respect to interest expense on variable rate debt. Such instruments are not held or used for trading purposes. HSNi is party to an interest rate swap agreement which began in January 2014 with one major financial institution that fixes the variable benchmark component (LIBOR) of HSNi's interest rate on a portion of its variable-rate debt. See Note 8 for further discussion of derivative instruments.

Share Repurchases

Shares repurchased pursuant to HSNi's share repurchase program are immediately retired upon purchase. Repurchased common stock is reflected as a reduction of shareholders' 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 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.

Private Label Credit Card

HSN's credit card program offers eligible customers a private label credit card. All cardholders receive certain rewards and benefits which are designed to recognize and promote client loyalty. HSN designs, executes and administers marketing programs to promote usage of the card to current and potential customers. These marketing programs are funded largely by the sponsoring bank. HSN also saves on interchange fees that it would incur if its customers used third-party cards. Purchases made through the private label credit card represented 31%, 28% and 27% of HSN's business in 2014, 2013 and 2012, respectively.

In November 2013, HSN extended its agreement with the sponsoring bank through 2020. As with the original agreement, HSN received an upfront signing bonus from the sponsoring bank which is being amortized over the term of the agreement and also receives ongoing payments for new accounts activated as well as a share of net sales collected by the sponsoring bank. For the years ended December 31, 2014, December 31, 2013 and December 31, 2012, HSN recognized approximately $16.5 million, $12.8 million, and $11.4 million, respectively, of income from the sponsoring bank that was used to offset credit card fees included in costs of goods sold.

Accounting Estimates

HSNi prepares its financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”). These principles require management to make certain estimates and assumptions during the preparation of its consolidated financial statements. These estimates and assumptions impact the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates.

Significant estimates underlying the accompanying consolidated financial statements include: the determination of the lower of cost or market adjustment for inventory; sales returns and other revenue allowances; the allowance for doubtful accounts; the recoverability of long-lived assets; the impairment of intangible assets; the annual expected effective tax rate; the determination of deferred income taxes, including related valuation allowances; the accrual for actual, pending or threatened litigation, claims and assessments; the breakage of merchandise credits; and assumptions related to the determination of stock-based compensation and contingent consideration related to acquisitions.

Certain Risks and Concentrations

HSNi’s business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security, consumer credit risk and credit card fraud. HSNi also depends on third-party service providers for processing certain fulfillment services.

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Segment Information (Adjusted EBITDA To Operating Income (Loss) And Consolidated Net Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 31, 2014		Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014		Dec. 31, 2013		Sep. 30, 2013		Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Segment Reporting Information [Line Items]
Adjusted EBITDA													$ 342,340	[1],[2]	$ 337,866	[3]	$ 324,277
Stock-based compensation expense													(15,606)		(14,043)		(19,056)
Depreciation and amortization													(43,934)		(40,589)		(38,005)
Sales tax settlement																	(7,750)	[4]
Breakage income from merchandise credits	5,000												4,962	[1],[2]
Asset impairment	3,000												0		3,040	[3]	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings							3,600						0		3,600	[3]	0
CPSC settlement					3,100								3,100	[1],[2]
Loss on disposition of fixed assets													(53)		(1,140)		(722)
Operating income	109,406	[5]	65,968	67,367	41,868	[6]	97,752	[7]	61,085	[8]	71,299	52,518	284,609	[1],[2]	282,654	[3]	258,744	[4]
Total other expense, net													(7,082)		(6,513)		(38,874)
Income from continuing operations before income taxes													277,527	[1],[2]	276,141	[3]	219,870	[4]
Income tax provision													(104,543)	[1],[2]	(97,692)	[3]	(83,373)	[4]
Income from continuing operations	68,331	[5]	39,531	40,940	24,182	[6]	61,573	[7]	42,052	[8]	43,271	31,553	172,984		178,449		136,497	[4]
Loss from discontinued operations, net of tax	0	[5]	0	0	0	[6]	0	[7]	0	[8]	9	(9)	0		0		(5,822)
Net income	68,331	[5]	39,531	40,940	24,182	[6]	61,573	[7]	42,052	[8]	43,280	31,544	172,984	[1],[2]	178,449	[3]	130,675	[4]
HSN [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA													289,141	[2]	261,292		250,836
Stock-based compensation expense													(12,224)		(10,657)		(11,167)
Depreciation and amortization													(29,762)		(28,372)		(26,486)
Sales tax settlement																	0	[4]
Breakage income from merchandise credits													4,962
Asset impairment															0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings															0
CPSC settlement													0
Loss on disposition of fixed assets													(19)		(1,079)		(680)
Operating income													252,098	[2]	221,184		212,503	[4]
Cornerstone [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA													53,199	[1]	76,574	[3]	73,441
Stock-based compensation expense													(3,382)		(3,386)		(7,889)
Depreciation and amortization													(14,172)		(12,217)		(11,519)
Sales tax settlement																	(7,750)	[4]
Breakage income from merchandise credits													0
Asset impairment															3,040	[3]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings															3,600	[3]
CPSC settlement													3,100	[1]
Loss on disposition of fixed assets													(34)		(61)		(42)
Operating income													$ 32,511	[1]	$ 61,470	[3]	$ 46,241	[4]

[1] (b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").

[2] (a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.

[3] (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

[4] (a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.

[5] (d)The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share by $0.06.

[6] (a)The first quarter of 2014 includes a $3.1 million settlement with the Consumer Product Safety Commission.

[7] (c)The fourth quarter of 2013 includes a $3.6 million reduction to a previously recorded contingent consideration obligation and a $3.0 million impairment charge of intangible assets related to a 2012 acquisition resulting in a net expense reduction of $0.6 million, or $1.7 million net of taxes. These fair value adjustments increased diluted earnings per share by $0.03.

[8] (b)The third quarter of 2013 includes discrete tax benefits of $3.7 million which increased diluted earnings per share by $0.07.

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Related Party Transactions (Details) (Liberty Parties [Member])	12 Months Ended
	Dec. 31, 2014
Related Party Transaction [Line Items]
Voting power of equity securities held	20.00%
Percentage of nomination of director by the related party	20.00%
Percentage of ownership upon spin-off	30.00%
Maximum ownership percentage entitled after the transfer of equity securities	15.00%
Minimum value of tender offer as a percentage of capital stock which results in reliving of obligations	35.00%
Minimum ownership percentage held by third party that would result in reliving of obligations	20.00%
Minimum ownership interest after consummation of a competing offer that would result in termination of consent	50.00%
Minimum ownership interest held at second anniversary that would result in termination of obligations	50.00%
Minimum [Member]
Related Party Transaction [Line Items]
Additional percentage under the agreement	5.00%
Maximum [Member]
Related Party Transaction [Line Items]
Additional percentage under the agreement	35.00%

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Stock-Based Awards (Stock-Based Compensation Expense) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 15,606	$ 14,043	$ 19,056
Income tax benefit	(5,685)	(4,835)	(6,494)
Stock-based compensation expense after income taxes	9,921	9,208	12,562
Selling And Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	4,736	3,793	3,515
General And Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 10,870	$ 10,250	$ 15,541

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Quarterly Results (Unaudited) (Note)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Data [Abstract]

Quarterly Results (Unaudited)

QUARTERLY RESULTS (UNAUDITED)

	Quarter Ended
	March 31,			June 30,		September 30,		December 31,
	(a)					(b)		(c) (d)
	(In thousands, except per share data)
Year Ended December 31, 2014
Net sales	$	777,420		$	855,204	$	837,477	$	1,117,894
Gross profit	275,774			313,135		302,415		381,737
Operating income	41,868			67,367		65,968		109,406
Income from continuing operations	24,182			40,940		39,531		68,331
Loss from discontinued operations, net of tax	—			—		—		—
Net income	24,182			40,940		39,531		68,331
Income from continuing operations per share:
Basic	$	0.45		$	0.77	$	0.75	$	1.30
Diluted	$	0.45		$	0.76	$	0.74	$	1.28
Net income per share:
Basic	$	0.45		$	0.77	$	0.75	$	1.30
Diluted	$	0.45		$	0.76	$	0.74	$	1.28
Dividends declared per common share	$	0.25		$	0.25	$	0.25	$	0.35
Year Ended December 31, 2013
Net sales	$	772,651		$	812,606	$	798,890	$	1,019,835
Gross profit	280,147			308,777		288,590		352,300
Operating income	52,518			71,299		61,085		97,752
Income from continuing operations	31,553			43,271		42,052		61,573
(Loss) income from discontinued operations, net of tax	(9		)	9		—		—
Net income	31,544			43,280		42,052		61,573
Income from continuing operations per share:
Basic	$	0.58		$	0.81	$	0.79	$	1.16
Diluted	$	0.56		$	0.79	$	0.77	$	1.14
Net income per share:
Basic	$	0.58		$	0.81	$	0.79	$	1.16
Diluted	$	0.56		$	0.79	$	0.77	$	1.14
Dividends declared per common share	$	0.18		$	0.18	$	0.18	$	0.25

(a) The first quarter of 2014 includes a $3.1 million settlement with the Consumer Product Safety Commission.

(b) The third quarter of 2013 includes discrete tax benefits of $3.7 million which increased diluted earnings per share by $0.07.

(c) The fourth quarter of 2013 includes a $3.6 million reduction to a previously recorded contingent consideration obligation and a $3.0 million impairment charge of intangible assets related to a 2012 acquisition resulting in a net expense reduction of $0.6 million, or $1.7 million net of taxes. These fair value adjustments increased diluted earnings per share by $0.03.

(d) The fourth quarter of 2014 includes $5.0 million of revenue, or $3.1 million of income, net of taxes, related to the cumulative reversal of liabilities for certain unused merchandise credits ("breakage") which increased diluted earnings per share by $0.06.

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Income Taxes (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Expense (Benefit), Continuing Operations [Abstract]
Reduction in current income taxes payable	$ 12,900,000	$ 19,800,000	$ 22,700,000
Net operating loss carryforwards	4,800,000
Valuation allowance	1,577,000	1,495,000
Unrecognized tax benefits, including interest	2,400,000	1,100,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 2,400,000	$ 900,000

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value For Other Financial Liabilities

The following table summarizes the fair value of HSNi's other financial assets and liabilities which are measured at fair value on a recurring basis in the consolidated balance sheets (in thousands):

	December 31, 2014
		Total Fair Value and Carrying Value on Balance Sheet		Fair Value Measurement Category
				Level 1		Level 2		Level 3
Assets:
Interest rate swap		$	208	$	—	$	208	$	—

	December 31, 2013
		Total Fair Value and Carrying Value on Balance Sheet		Fair Value Measurement Category
				Level 1		Level 2		Level 3
Assets:
Interest rate swap		$	574	$	—	$	574	$	—
Liabilities:
Contingent consideration		1,032		—		—		1,032

Fair Value Of Assets And Liabilities

The following table summarizes the fair value of HSNi’s financial assets and liabilities which are carried at cost (in thousands):

	December 31, 2014
	Carrying Value		Fair Value		Fair Value Measurement Category
					Level 1		Level 2		Level 3
Term Loan	$	228,126	$	228,126	$	—	$	228,126	$	—

	December 31, 2013
	Carrying Value		Fair Value		Fair Value Measurement Category
					Level 1		Level 2		Level 3
Term Loan	$	240,625	$	240,625	$	—	$	240,625	$	—

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Income Taxes (Note)

12 Months Ended

Dec. 31, 2014

Income Tax Expense (Benefit), Continuing Operations [Abstract]

Income Taxes

INCOME TAXES

The components of the provision for income taxes are as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Current income tax provision:
Federal	$	(96,269	)	$	(81,521	)	$	(76,992	)
State	(10,289		)	(9,990		)	(8,904		)
Current income tax provision	(106,558		)	(91,511		)	(85,896		)
Deferred income tax (provision) benefit:
Federal	1,468			(6,489		)	1,814
State	547			308			709
Deferred income tax (provision) benefit	2,015			(6,181		)	2,523
Income tax provision	$	(104,543	)	$	(97,692	)	$	(83,373	)

Current income taxes payable has been reduced by $12.9 million, $19.8 million, and $22.7 million for the years ended December 31, 2014, 2013 and 2012, respectively, for tax deductions attributable to stock-based compensation. The related income tax benefits of this stock-based compensation were recorded as amounts charged or credited to the income tax provision and additional paid-in capital.

The tax effects of cumulative temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are presented below (in thousands). The valuation allowance is related to items for which it is more likely than not that the tax benefit will not be realized.

	December 31,
	2014			2013
Deferred tax assets:
Provision for accrued expenses	$	34,987		$	33,647
Inventories	13,969			13,125
Stock-based compensation	12,072			10,888
Net operating losses	1,705			1,531
Other	4,098			4,078
Total deferred tax assets	66,831			63,269
Less valuation allowance	(1,577		)	(1,495		)
Net deferred tax assets	65,254			61,774
Deferred tax liabilities:
Intangible and other assets	(92,267		)	(91,018		)
Prepaid expenses	(12,890		)	(13,574		)
Property and equipment	(16,216		)	(15,455		)
Total deferred tax liabilities	(121,373		)	(120,047		)
Net deferred tax liability	$	(56,119	)	$	(58,273	)

At December 31, 2014, HSNi had $4.8 million of net operating loss carryforwards which begin expiring in 2015. As of December 31, 2014 and 2013, HSNi had a valuation allowance of approximately $1.6 million and $1.5 million, respectively. Valuation allowances are recorded for certain deferred tax assets related to foreign and separate state net operating losses.

A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Income tax provision at the federal statutory rate of 35%	$	(97,135	)	$	(96,649	)	$	(76,955	)
State income taxes, net of effect of federal tax benefit	(6,306		)	(6,293		)	(5,327		)
Other, net	(1,102		)	5,250			(1,091		)
Income tax provision	$	(104,543	)	$	(97,692	)	$	(83,373	)

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, is as follows (in thousands):

	2014		2013			2012
Balance at beginning of year	$	910	$	682		$	664
Additions based on tax positions related to the current year	525		417			—
Additions for tax positions of prior years	576		—			18
Reductions for tax positions of prior years	—		(189		)	—
Balance at end of year	$	2,011	$	910		$	682

As of December 31, 2014 and 2013, the unrecognized tax benefits, including interest, were $2.4 million and $1.1 million, respectively. At December 31, 2014 and 2013, there are approximately $2.4 million and $0.9 million of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate.

HSNi recognizes interest and, if applicable, penalties related to unrecognized tax benefits in income tax expense. There is no material interest on unrecognized tax benefits included in income tax expense for the years ended December 31, 2014, 2013 and 2012. At December 31, 2014 and 2013, HSNi has no material accrual for the payment of interest or penalties.

HSNi believes that it is reasonably possible that its unrecognized tax benefits could decrease by an immaterial amount within twelve months of the current reporting date due to settlement with the taxing authority.

HSNi is routinely under audit by federal, state, local and foreign tax authorities. These audits include questioning the timing and the amount of deductions and the allocation of income among various tax jurisdictions. Income taxes payable include amounts considered sufficient to pay assessments that may result from examination of prior year returns; however, the amount paid upon resolution of issues raised may differ from the amount provided. Differences between the reserves for tax contingencies and the amounts owed by HSNi are recorded in the period they become known.

The Internal Revenue Service ("IRS") has concluded its examination of HSNi's consolidated federal income tax return for the year ended December 31, 2010 and its limited scope examination of HSNi's consolidated federal income tax return for the year ended December 31, 2011. No material adjustments resulted from these IRS examinations. No state income tax examinations are currently in process.

HSNi and several companies previously owned by IAC, were spun-off from IAC on August 20, 2008. In connection with the spin-off, HSNi entered into a Tax Sharing Agreement with IAC pursuant to which, among other things, each of the Spincos has indemnified IAC and the other Spincos for any taxes resulting from the Spin-off of such Spinco (and any related interest, penalties, legal and professional fees, and all costs and damages associated with related shareholder litigation or controversies) to the extent such amounts result from (i) any act or failure to act by such Spinco described in the covenants in the Tax Sharing Agreement, (ii) any acquisition of equity securities or assets of such Spinco or a member of its group, and (iii) any breach by such Spinco or any member of its group of any representation or covenant contained in the separation documents or in the documents relating to the IRS private letter ruling and/or tax opinions. In the event an adjustment with respect to a pre-spin-off period for which IAC is responsible results in a tax benefit to HSNi in a post-spin-off period, HSNi will be required to pay such tax benefit to IAC. In general, IAC controls all audits and administrative matters and other tax proceedings relating to the consolidated federal income tax return of the IAC group and any other tax returns for which the IAC group is responsible. The provisions set forth in the Tax Sharing Agreement could subject HSNi to future tax contingencies.

The IRS has completed its review of the IAC consolidated tax returns for the years ended December 31, 2001 through 2009, which includes the operations of HSNi through the date of the Spin-off. The settlement for these years has been submitted to and approved by the Joint Committee on Taxation. Various IAC consolidated tax returns filed with state, local and foreign jurisdictions are currently under examination for various tax years beginning with 2006. By virtue of the Tax Sharing Agreement with IAC, HSNi is indemnified with respect to additional tax liabilities for consolidated or combined federal and state tax returns prepared and filed by IAC prior to the Spin-off, but is liable for any additional tax liabilities for HSNi separately filed state income tax returns.