Document_and_Entity_Informatio
Document and Entity Information Document | 6 Months Ended |
Jun. 30, 2014 | |
Document Information [Abstract] | ' |
Entity Registrant Name | 'QVC INC |
Entity Central Index Key | '0001254699 |
Entity Filer Category | 'Non-accelerated Filer |
Document Type | 'S-4 |
Document Period End Date | 30-Jun-14 |
Amendment Flag | 'false |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||||
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $548 | $457 | $416 | $540 | $560 | $621 |
Restricted cash | 14 | 14 | ' | 15 | ' | ' |
Accounts receivable, less allowance for doubtful accounts of $85 million at June 30, 2014 and $83 million at December 31, 2013 | 756 | 1,111 | ' | 1,055 | ' | ' |
Inventories | 989 | 931 | ' | 909 | ' | ' |
Deferred income taxes | 165 | 162 | ' | 151 | ' | ' |
Prepaid expenses | 57 | 47 | ' | 53 | ' | ' |
Total current assets | 2,529 | 2,722 | ' | 2,723 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' | ' | ' |
Property and equipment, net of accumulated depreciation of $989 million at June 30, 2014 and $919 million at December 31, 2013 | 1,076 | 1,106 | ' | 1,131 | ' | ' |
Cable and satellite television distribution rights, net | 540 | 624 | ' | 764 | ' | ' |
Goodwill | 5,210 | 5,197 | ' | 5,234 | 5,239 | ' |
Other intangible assets, net | 3,243 | 3,336 | ' | 3,509 | ' | ' |
Other noncurrent assets | 69 | 71 | ' | 77 | ' | ' |
Total assets | 12,667 | 13,056 | ' | 13,438 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 11 | 13 | ' | 12 | ' | ' |
Accounts payable-trade | 470 | 425 | ' | 566 | ' | ' |
Accrued liabilities | 743 | 1,029 | ' | 955 | ' | ' |
Total current liabilities | 1,224 | 1,467 | ' | 1,533 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 3,937 | 3,800 | ' | 3,465 | ' | ' |
Deferred compensation | 14 | 14 | ' | 12 | ' | ' |
Deferred income taxes | 1,223 | 1,326 | ' | 1,410 | ' | ' |
Other long-term liabilities | 157 | 108 | ' | 184 | ' | ' |
Total liabilities | 6,555 | 6,715 | ' | 6,604 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' | ' | ' |
Common stock, $0.01 par value | 0 | 0 | ' | 0 | ' | ' |
Additional paid-in capital | 6,724 | 6,703 | ' | 6,665 | ' | ' |
Accumulated deficit | -882 | -620 | ' | -161 | ' | ' |
Accumulated other comprehensive income | 154 | 139 | 98 | 186 | 194 | 209 |
Total QVC, Inc. stockholder's equity | 5,996 | 6,222 | ' | 6,690 | ' | ' |
Noncontrolling interest | 116 | 119 | ' | 144 | ' | ' |
Total equity | 6,112 | 6,341 | ' | 6,834 | 8,019 | 7,654 |
Total liabilities and equity | $12,667 | $13,056 | ' | $13,438 | ' | ' |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | ' | ' | ' |
Allowance for D/A | $85 | $83 | $74 |
Accumulated depreciation | $989 | $919 | $867 |
Common stock par value | $0.01 | $0.01 | $0.01 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $2,014 | $1,961 | $4,000 | $3,935 | $8,623 | $8,516 | $8,268 |
Cost of goods sold | 1,250 | 1,227 | 2,506 | 2,479 | 5,465 | 5,419 | 5,278 |
Gross profit | 764 | 734 | 1,494 | 1,456 | 3,158 | 3,097 | 2,990 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 180 | 171 | 358 | 344 | 740 | 715 | 744 |
Selling, general and administrative, including stock-based compensation | 155 | 138 | 303 | 293 | 615 | 588 | 535 |
Depreciation | 33 | 33 | 66 | 63 | 127 | 126 | 135 |
Amortization | 112 | 107 | 223 | 211 | 431 | 400 | 439 |
Operating expenses | 480 | 449 | 950 | 911 | 1,913 | 1,829 | 1,853 |
Operating income | 284 | 285 | 544 | 545 | 1,245 | 1,268 | 1,137 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | -2 | -2 | -3 | -1 | -4 | -4 | -2 |
Gains on financial instruments | 0 | 3 | 0 | 15 | 15 | 48 | 50 |
Interest expense, net | -60 | -50 | -122 | -113 | -214 | -233 | -229 |
Foreign currency gain (loss) | 1 | 0 | 0 | -1 | 1 | 2 | -2 |
Loss on extinguishment of debt | 0 | -16 | 0 | -57 | -57 | 0 | 0 |
Nonoperating income (expense) | -61 | -65 | -125 | -157 | -259 | -187 | -183 |
Income before income taxes | 223 | 220 | 419 | 388 | 986 | 1,081 | 954 |
Income tax expense | -83 | -81 | -157 | -143 | -353 | -394 | -342 |
Net income | 140 | 139 | 262 | 245 | 633 | 687 | 612 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 | -45 | -63 | -52 |
Net income attributable to QVC, Inc. stockholder | $130 | $126 | $243 | $220 | $588 | $624 | $560 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income Statement (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Net income | $140 | $139 | $262 | $245 | $633 | $687 | $612 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 | -72 | -27 | -10 |
Total comprehensive income | 142 | 123 | 280 | 138 | 561 | 660 | 602 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 | -20 | -44 | -57 |
Comprehensive income attributable to QVC, Inc. stockholder | $132 | $116 | $258 | $132 | $541 | $616 | $545 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net income | $262 | $245 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Equity in losses of investee | 3 | 1 |
Deferred income taxes | -108 | -52 |
Foreign currency loss | 0 | 1 |
Depreciation | 66 | 63 |
Amortization | 223 | 211 |
Change in fair value of financial instruments and noncash interest | 4 | -11 |
Loss on extinguishment of debt | 0 | 57 |
Stock-based compensation | 18 | 19 |
Change in other long-term liabilities | 55 | 2 |
Effects of changes in working capital items | 26 | -94 |
Net cash provided by operating activities | 549 | 442 |
Investing activities: | ' | ' |
Capital expenditures, net | -57 | -75 |
Expenditures for cable and satellite television distribution rights, net | -8 | -26 |
Changes in other noncurrent assets | 0 | 1 |
Net cash used in investing activities | -65 | -100 |
Financing activities: | ' | ' |
Principal payments of debt and capital lease obligations | -1,419 | -1,695 |
Principal borrowings of debt from senior secured credit facility | 554 | 1,053 |
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | 1,050 |
Payment of debt origination fees | -12 | -16 |
Payment of bond premium fees | 0 | -46 |
Other financing activities | -4 | 7 |
Dividends paid to Liberty | -480 | -765 |
Dividends paid to noncontrolling interest | -25 | -25 |
Net cash used in financing activities | -387 | -437 |
Effect of foreign exchange rate changes on cash and cash equivalents | -6 | -29 |
Net increase (decrease) in cash and cash equivalents | 91 | -124 |
Cash and cash equivalents, beginning of period | 457 | 540 |
Cash and cash equivalents, end of period | 548 | 416 |
Effects of changes in working capital items: | ' | ' |
Decrease in accounts receivable | 357 | 346 |
Increase in inventories | -57 | -51 |
Increase in prepaid expenses | -10 | -11 |
Decrease in accounts payable trade | -14 | -112 |
Decrease in accrued liabilities and other | -250 | -266 |
Effects of changes in working capital items | $26 | ($94) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Equity (USD $) | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income | Noncontrolling interest |
Balance, December 31, 2013 at Dec. 31, 2010 | $7,654,000,000 | $0 | $6,613,000,000 | $710,000,000 | $209,000,000 | $122,000,000 |
Balance, January 1, 2014 (in shares) at Dec. 31, 2010 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 612,000,000 | ' | 0 | 560,000,000 | 0 | 52,000,000 |
Other comprehensive income (expense): | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -10,000,000 | ' | 0 | 0 | -15,000,000 | 5,000,000 |
Dividends paid to Liberty and noncontrolling interest and other | -267,000,000 | ' | 1,000,000 | -218,000,000 | 0 | -50,000,000 |
Excess tax benefit resulting from stock-based compensation | 8,000,000 | ' | 8,000,000 | 0 | 0 | 0 |
Stock based compensation | 22,000,000 | ' | 22,000,000 | 0 | 0 | 0 |
Balance, June 30, 2014 at Dec. 31, 2011 | 8,019,000,000 | 0 | 6,644,000,000 | 1,052,000,000 | 194,000,000 | 129,000,000 |
Balance, June 30, 2014 (in shares) at Dec. 31, 2011 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 687,000,000 | ' | 0 | 624,000,000 | 0 | 63,000,000 |
Other comprehensive income (expense): | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -27,000,000 | ' | 0 | 0 | -8,000,000 | -19,000,000 |
Dividends paid to Liberty and noncontrolling interest and other | -1,899,000,000 | ' | -33,000,000 | -1,837,000,000 | 0 | -29,000,000 |
Excess tax benefit resulting from stock-based compensation | 20,000,000 | ' | 20,000,000 | 0 | 0 | 0 |
Stock based compensation | 34,000,000 | ' | 34,000,000 | 0 | 0 | 0 |
Balance, June 30, 2014 at Dec. 31, 2012 | 6,834,000,000 | 0 | 6,665,000,000 | -161,000,000 | 186,000,000 | 144,000,000 |
Balance, June 30, 2014 (in shares) at Dec. 31, 2012 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 633,000,000 | ' | 0 | 588,000,000 | 0 | 45,000,000 |
Other comprehensive income (expense): | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -72,000,000 | ' | 0 | 0 | -47,000,000 | -25,000,000 |
Dividends paid to Liberty and noncontrolling interest and other | -1,104,000,000 | ' | -12,000,000 | -1,047,000,000 | 0 | -45,000,000 |
Excess tax benefit resulting from stock-based compensation | 12,000,000 | ' | 12,000,000 | 0 | 0 | 0 |
Stock based compensation | 38,000,000 | ' | 38,000,000 | 0 | 0 | 0 |
Balance, June 30, 2014 at Dec. 31, 2013 | 6,341,000,000 | 0 | 6,703,000,000 | -620,000,000 | 139,000,000 | 119,000,000 |
Balance, June 30, 2014 (in shares) at Dec. 31, 2013 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 262,000,000 | ' | 0 | 243,000,000 | 0 | 19,000,000 |
Other comprehensive income (expense): | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | 18,000,000 | ' | 0 | 0 | 15,000,000 | 3,000,000 |
Dividends paid to Liberty and noncontrolling interest and other | -516,000,000 | ' | 0 | -491,000,000 | 0 | -25,000,000 |
Impact of tax liability allocation and indemnification agreement with Liberty | -14,000,000 | ' | 0 | -14,000,000 | 0 | 0 |
Minimum withholding taxes on net share settlements of stock-based compensation | -5,000,000 | ' | -5,000,000 | 0 | 0 | 0 |
Excess tax benefit resulting from stock-based compensation | 8,000,000 | ' | 8,000,000 | 0 | 0 | 0 |
Stock based compensation | 18,000,000 | ' | 18,000,000 | 0 | 0 | 0 |
Balance, June 30, 2014 at Jun. 30, 2014 | $6,112,000,000 | $0 | $6,724,000,000 | ($882,000,000) | $154,000,000 | $116,000,000 |
Balance, June 30, 2014 (in shares) at Jun. 30, 2014 | ' | 1 | ' | ' | ' | ' |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Basis of Presentation [Abstract] | ' | ' |
Basis of Presentation | ' | ' |
Basis of Presentation | (1) Basis of Presentation | |
QVC, Inc. (unless otherwise indicated or required by the context, the terms "we," "our," "us," the "Company" and "QVC" refer to QVC, Inc. and its consolidated subsidiaries) is a retailer of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised shopping programs, the Internet and mobile applications. In the United States, QVC's live programming is distributed via its nationally televised shopping program 24 hours per day, 364 days per year ("QVC-U.S."). Internationally, QVC's program services are based in Japan ("QVC-Japan"), Germany ("QVC-Germany"), the United Kingdom ("QVC-U.K.") and Italy ("QVC-Italy"). QVC-Japan distributes live programming 24 hours per day, QVC-Germany distributes its program 24 hours per day with 17 hours of live programming and QVC-U.K. distributes its program 24 hours per day with 17 hours of live programming. QVC-Italy distributes programming live for 17 hours per day on satellite and digital terrestrial television and an additional seven hours per day of recorded programming on satellite and seven hours per day of general interest programming on digital terrestrial television. | QVC is a retailer of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised shopping programs, the Internet and mobile applications. In the U.S., QVC's live programming is distributed via its nationally televised shopping program 24 hours per day, 364 days per year ("QVC-U.S."). Internationally, QVC's program services are based in Japan ("QVC-Japan"), Germany ("QVC-Germany"), the U.K. ("QVC-U.K.") and Italy ("QVC-Italy"). QVC-Japan distributes live programming 24 hours per day, QVC-Germany distributes its program 24 hours per day with 23 hours of live programming and QVC-U.K. distributes its program 24 hours per day with 17 hours of live programming. QVC-Italy distributes programming live for 17 hours per day on satellite and digital terrestrial television and an additional seven hours per day of recorded programming on satellite and seven hours per day of general interest programming on digital terrestrial television. | |
The Company also has a joint venture with China Broadcasting Corporation, a limited liability company owned by China National Radio ("CNR"). The Company owns a 49% interest in a CNR subsidiary, CNR Home Shopping Co., Ltd. ("CNRS"). CNRS distributes live programming for 15 hours per day and recorded programming for nine hours per day. This joint venture is accounted for as an equity method investment recorded as equity in (losses) earnings of investee in the condensed consolidated statements of operations. | On July 4, 2012, QVC entered into a joint venture with China Broadcasting Corporation, a limited liability company owned by China National Radio ("CNR"), for a 49% interest in a CNR subsidiary, CNR Home Shopping Co., Ltd. ("CNRS"). CNRS distributes live programming for 15 hours a day and recorded programming for nine hours a day. The CNRS joint venture is accounted for as an equity method investment recorded as equity in losses of investee in the consolidated statements of operations. | |
Additionally, the Company's Japanese operations are conducted through a venture with Mitsui & Co. LTD ("Mitsui") for a television and multimedia retailing service in Japan. QVC-Japan is owned 60% by the Company and 40% by Mitsui. The Company and Mitsui share in all profits and losses based on their respective ownership interests. For both the six months ended June 30, 2014 and 2013, QVC-Japan paid dividends to Mitsui of $25 million, respectively. | The Company has a venture with Mitsui & Co. LTD ("Mitsui") for a television and multimedia retailing service in Japan. QVC-Japan is owned 60% by the Company and 40% by Mitsui. The Company and Mitsui share in all profits and losses based on their respective ownership interests. During the years ended December 31, 2013, 2012 and 2011, QVC-Japan paid dividends to Mitsui of $45 million, $29 million and $50 million, respectively. | |
We are an indirect wholly owned subsidiary of Liberty Interactive ("Liberty"), which owns interests in a broad range of digital commerce businesses. On August 9, 2012, Liberty completed the recapitalization of its common stock into shares of the corresponding series of two new tracking stocks, Liberty Interactive (Nasdaq: LINTA, LINTB) and Liberty Ventures (Nasdaq: LVNTA, LVNTB). On October 3, 2014, Liberty's board of directors approved (i) the change in attribution from the Liberty Interactive Group to the Liberty Ventures Group of its digital commerce companies (Provide Commerce, Inc., Backcountry.com, Inc., Bodybuilding.com, LLC, CommerceHub and the Evite.com business), together with $970 million in cash, effective immediately; (ii) the creation of an inter-group interest in Liberty Ventures Group in favor of the former Liberty Interactive Group (which will now be referred to as the "QVC Group"), which is represented as a number of Liberty Ventures shares that may be issued to the QVC Group ("Inter-Group Interest Shares") calculated in accordance with Liberty's Restated Certificate of Incorporation; and (iii) a dividend of the Inter-Group Interest Shares to the holders of QVC Group common stock in full elimination of the inter-group interest. In connection with the payment of the dividend, typical antidilution adjustments will be made to outstanding QVC Group equity incentive awards, and the Liberty board reattributed $30 million in cash to the Liberty Ventures Group relating to its assumption of liabilities related to those awards. We refer to the foregoing transactions as the "2014 Reattribution." As a result of these transactions, we are now attributed to the new QVC Group, which tracks the assets and liabilities of our company and Liberty's 38% equity interest in HSN, Inc., one of our two closest televised shopping competitors, and the trading symbols for the Series A QVC Group tracking stock and the Series B QVC Group tracking stock have changed to "QVCA" and "QVCB," respectively. In connection with the 2014 Reattribution, we increased the balance on our credit facility to $1.06 billion. | We are an indirect wholly owned subsidiary of Liberty Interactive Corporation ("Liberty") (Nasdaq: LINTA, LINTB, LVNTA and LVNTB), which owns interests in a broad range of digital commerce businesses. We are attributed to the Liberty Interactive tracking stock, which tracks the assets and liabilities of Liberty's Interactive Group (the "Interactive Group"). The Interactive Group does not represent a separate legal entity; rather, it represents those businesses, assets and liabilities that are attributed to that group. Liberty also attributes to its Interactive Group those businesses primarily focused on digital commerce and its 38% ownership interest in HSN, Inc. ("HSN"), one of our two closest televised shopping competitors. | |
On April 16, 2014, QVC announced plans to expand its global presence into France. Similar to its other markets, QVC plans to offer a highly immersive digital shopping experience, with strong integration across e-commerce, TV, mobile and social platforms, with the launch scheduled for the second quarter of 2015. | In October 2013, Liberty announced that its board has authorized management to pursue a plan to recapitalize (the "Recapitalization") its Liberty Interactive Group tracking stock into two new tracking stocks, one (currently the Liberty Interactive common stock) to be renamed the QVC Group common stock and the other to be designated as the Liberty Digital Commerce common stock. In the Recapitalization, record holders of Series A and Series B Liberty Interactive common stock would receive one share of the corresponding series of Liberty Digital Commerce common stock for each 10 shares of the renamed QVC Group common stock held by them as of the effective date. Liberty intends to attribute to the Liberty Digital Commerce Group its operating subsidiaries Provide Commerce, Inc.; Backcountry.com, Inc.; Bodybuilding.com, LLC; CommerceHub; Right Start and Evite along with cash and certain liabilities. The QVC Group, which is currently known as the Liberty Interactive Group, would have attributed to it the Company and Liberty's approximate 38% interest in HSN, along with cash and certain liabilities. | |
The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. | The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. | |
The accompanying (a) condensed consolidated balance sheet as of December 31, 2013, which has been derived from audited financial statements, and (b) interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in QVC's Annual Report on Form 10-K for the year ended December 31, 2013. | ||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, depreciable lives of fixed assets, internally-developed software, valuation of acquired intangible assets and goodwill, income taxes and stock-based compensation. | ||
On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | ||
Certain prior period amounts have been reclassified to conform with current period presentation. | ||
Cable_and_Satellite_Television
Cable and Satellite Television Distribution Rights, Net | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Cable and Satellite Television Distribution Rights [Abstract] | ' | ' | ||||||||||
Cable and Satellite Television Distribution Rights, Net | ' | ' | ||||||||||
Cable and Satellite Television Distribution Rights, Net | Cable and Satellite Television Distribution Rights, Net | |||||||||||
Cable and satellite television distribution rights consisted of the following: | Cable and satellite television distribution rights consisted of the following: | |||||||||||
June 30, | December 31, | December 31, | ||||||||||
(in millions) | 2013 | 2012 | ||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Cable and satellite television distribution rights | $ | 2,324 | 2,304 | |||||||||
Cable and satellite television distribution rights | $ | 2,334 | 2,324 | |||||||||
Less accumulated amortization | (1,700 | ) | (1,540 | ) | ||||||||
Less accumulated amortization | (1,794 | ) | (1,700 | ) | Cable and satellite television distribution rights, net | $ | 624 | 764 | ||||
Cable and satellite television distribution rights, net | $ | 540 | 624 | |||||||||
The Company enters into affiliation agreements with cable and satellite television providers for carriage of the Company's shopping service, as well as for certain channel placement. If these cable and satellite affiliates were to add additional subscribers to the agreement through acquisition, the Company may be required to make additional payments. | ||||||||||||
The Company recorded amortization expense of $46 million and $44 million for the three months ended June 30, 2014 and 2013, respectively, related to cable and satellite television distribution rights. For the six months ended June 30, 2014 and 2013, amortization expense for cable and satellite television distribution rights was $93 million and $86 million, respectively. | The Company's ability to continue to sell products to its customers is dependent on its ability to maintain and renew these affiliation agreements. In some cases, renewals are not agreed upon prior to the expiration of a given agreement while the programming continues to be carried by the relevant distributor without an effective agreement in place. The Company does not have distribution agreements with some of the cable operators that carry its programming. | |||||||||||
As of June 30, 2014, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | Cable and satellite television distribution rights are amortized using the straight-line method over the lives of the individual agreements. The remaining weighted average lives of the cable and satellite television distribution rights was approximately 3.7 years at December 31, 2013. Amortization expense for cable and satellite television distribution rights was $177 million, $163 million and $167 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||
The increase in channel placement amortization and related expenses in 2013 was primarily due to new and amended long-term cable and satellite television distribution agreements in the U.S. | ||||||||||||
As of December 31, 2013, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | ||||||||||||
Remainder of 2014 | $ | 87 | ||||||||||
2015 | 168 | 2014 | $ | 176 | ||||||||
2016 | 162 | 2015 | 167 | |||||||||
2017 | 111 | 2016 | 161 | |||||||||
2018 | 6 | 2017 | 110 | |||||||||
2018 | 5 | |||||||||||
The decrease in future amortization expense in 2018 is primarily due to the end of affiliation agreement terms for contracts in place at the time of the Liberty acquisition of QVC in 2003. | ||||||||||||
In return for carrying our signals, each programming distributor in the U.S. receives an allocated portion, based upon market share, of up to 5% of the net sales of merchandise sold via the television programs and from certain Internet sales to customers located in the programming distributors' service areas. In Japan, Germany, the U.K. and Italy, programming distributors predominately receive an agreed-upon annual fee, a monthly fee per subscriber regardless of the net sales, a variable percentage of net sales or some combination of the above arrangements. The Company recorded expense related to these commissions of $298 million, $296 million and $299 million for the years ended December 31, 2013, 2012 and 2011, respectively, which is included as part of operating expenses in the consolidated statements of operations. |
Goodwill
Goodwill | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Goodwill Disclosure | ' | |||||||||||||
Goodwill | ||||||||||||||
The changes in the carrying amount of goodwill were as follows: | ||||||||||||||
(in millions) | QVC-U.S. | QVC-Japan | QVC-Germany | QVC-U.K. | QVC-Italy | Total | ||||||||
Balance as of December 31, 2013 | $ | 4,190 | 288 | 348 | 216 | 155 | 5,197 | |||||||
Exchange rate fluctuations | — | 11 | (3 | ) | 6 | (1 | ) | 13 | ||||||
Balance as of June 30, 2014 | $ | 4,190 | 299 | 345 | 222 | 154 | 5,210 | |||||||
Other_Intangible_Assets_Net
Other Intangible Assets, Net | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Other Intangible Assets [Abstract] | ' | ' | ||||||||||||||||||||||||
Intangible Assets Disclosure | ' | ' | ||||||||||||||||||||||||
Other Intangible Assets, Net | Other Intangible Assets, Net | |||||||||||||||||||||||||
Other intangible assets consisted of the following: | Other intangible assets consisted of the following: | |||||||||||||||||||||||||
June 30, | December 31, | December 31, | Weighted average remaining life (years) | |||||||||||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | Gross | Accumulated | Other intangible assets, net | Gross | Accumulated | Other intangible assets, net | (in millions) | Gross | Accumulated | Gross | Accumulated | |||||||||||||||
cost | amortization | cost | amortization | cost | amortization | cost | amortization | |||||||||||||||||||
Purchased and internally developed software | $ | 630 | (423 | ) | 207 | 615 | (393 | ) | 222 | Purchased and internally developed software | $ | 615 | (393 | ) | 575 | (352 | ) | 1.7 | ||||||||
Affiliate and customer relationships | 2,451 | (1,890 | ) | 561 | 2,450 | (1,802 | ) | 648 | Affiliate and customer relationships | 2,450 | (1,802 | ) | 2,445 | (1,624 | ) | 3.8 | ||||||||||
Debt origination fees | 64 | (17 | ) | 47 | 51 | (13 | ) | 38 | Debt origination fees | 51 | (13 | ) | 54 | (18 | ) | 8.8 | ||||||||||
Trademarks (indefinite life) | 2,428 | — | 2,428 | 2,428 | — | 2,428 | Trademarks (indefinite life) | 2,428 | — | 2,429 | — | — | ||||||||||||||
$ | 5,573 | (2,330 | ) | 3,243 | 5,544 | (2,208 | ) | 3,336 | $ | 5,544 | (2,208 | ) | 5,503 | (1,994 | ) | 3.5 | ||||||||||
The Company recorded amortization expense of $66 million and $63 million for the three months ended June 30, 2014 and 2013, respectively, related to other intangible assets. For the six months ended June 30, 2014 and 2013, amortization expense for other intangible assets was $130 million and $125 million, respectively, related to other intangible assets. | Amortization expense for other intangible assets was $254 million, $237 million and $272 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
As of June 30, 2014, the related amortization expense and interest expense for each of the next five years ended December 31 was as follows (in millions): | The increase in software amortization in 2013 was primarily due to solutions to enhance customer service and productivity in the U.S and Germany. | |||||||||||||||||||||||||
During the fourth quarter of 2011, QVC determined that certain capitalized customer relationship management ("CRM") software did not meet service-level expectations and desired functionality. As a result, QVC recorded an impairment of certain CRM assets in the amount of $47 million included in depreciation and amortization in the consolidated statement of operations within the QVC-U.S. operating segment. | ||||||||||||||||||||||||||
As of December 31, 2013, the related amortization expense and interest expense for each of the next five years ended December 31 was as follows (in millions): | ||||||||||||||||||||||||||
Remainder of 2014 | $ | 146 | ||||||||||||||||||||||||
2015 | 270 | 2014 | $ | 280 | ||||||||||||||||||||||
2016 | 235 | 2015 | 259 | |||||||||||||||||||||||
2017 | 135 | 2016 | 223 | |||||||||||||||||||||||
2018 | 9 | 2017 | 122 | |||||||||||||||||||||||
2018 | 9 | |||||||||||||||||||||||||
The decrease in future amortization expense in 2018 is primarily due to the end of the useful lives of the affiliate and customer relationships in place at the time of the Liberty acquisition of QVC in 2003. |
Accrued_Liabilities
Accrued Liabilities | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||
Accrued Liabilities [Abstract] | ' | ' | |||||||||
Accrued Liabilities | ' | ' | |||||||||
Accrued Liabilities | Accrued Liabilities | ||||||||||
Accrued liabilities consisted of the following: | Accrued liabilities consisted of the following: | ||||||||||
June 30, | December 31, | December 31, | |||||||||
(in millions) | 2013 | 2012 | |||||||||
(in millions) | 2014 | 2013 | |||||||||
Accounts payable non-trade | 323 | 264 | |||||||||
Accounts payable non-trade | 188 | 323 | |||||||||
Income taxes | 126 | 154 | |||||||||
Income taxes | 98 | 126 | |||||||||
Allowance for sales returns | 108 | 92 | |||||||||
Accrued compensation and benefits | 96 | 98 | |||||||||
Accrued compensation and benefits | 98 | 100 | |||||||||
Allowance for sales returns | 80 | 108 | |||||||||
Sales and other taxes | 79 | 62 | |||||||||
Accrued interest | 78 | 58 | |||||||||
Deferred revenue | 73 | 85 | |||||||||
Deferred revenue | 73 | 73 | |||||||||
Liability for consigned goods sold | 69 | 56 | |||||||||
Sales and other taxes | 53 | 79 | |||||||||
Accrued interest | 58 | 50 | |||||||||
Other | 77 | 95 | |||||||||
Other | 95 | 92 | |||||||||
$ | 743 | 960 | |||||||||
1,029 | 955 | ||||||||||
LongTerm_Debt
Long-Term Debt | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ' | ||||||||||
Debt Disclosure | ' | ' | ||||||||||
Long-Term Debt | Long-Term Debt and Interest Rate Swap Arrangements | |||||||||||
Long-term debt consisted of the following: | Long-term debt consisted of the following: | |||||||||||
June 30, | December 31, | December 31, | ||||||||||
(in millions) | 2013 | 2012 | ||||||||||
(in millions) | 2014 | 2013 | ||||||||||
7.125% Senior Secured Notes due 2017 | $ | — | 500 | |||||||||
3.125% Senior Secured Notes due 2019, net of original issue discount | $ | 399 | — | |||||||||
7.5% Senior Secured Notes due 2019, net of original issue discount | 761 | 988 | ||||||||||
7.5% Senior Secured Notes due 2019, net of original issue discount | 761 | 761 | ||||||||||
7.375% Senior Secured Notes due 2020 | 500 | 500 | ||||||||||
7.375% Senior Secured Notes due 2020 | 500 | 500 | ||||||||||
5.125% Senior Secured Notes due 2022 | 500 | 500 | ||||||||||
5.125% Senior Secured Notes due 2022 | 500 | 500 | ||||||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | 750 | — | ||||||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | 750 | 750 | ||||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | — | ||||||||||
4.85% Senior Secured Notes due 2024, net of original issue discount | 600 | — | ||||||||||
Senior secured credit facility | 922 | 903 | ||||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | 300 | ||||||||||
Capital lease obligations | 80 | 86 | ||||||||||
Senior secured credit facility | 65 | 922 | ||||||||||
Total debt | 3,813 | 3,477 | ||||||||||
Capital lease obligations | 73 | 80 | ||||||||||
Less current portion | (13 | ) | (12 | ) | ||||||||
Total debt | 3,948 | 3,813 | Long-term portion of debt and capital lease obligations | $ | 3,800 | 3,465 | ||||||
Less current portion | (11 | ) | (13 | ) | (a) 2013 Tender Offers | |||||||
Long-term portion of debt and capital lease obligations | $ | 3,937 | 3,800 | On March 4, 2013, QVC announced the commencement of cash tender offers (the "Offers") for any and all of its outstanding $500 million in aggregate principal amount of 7.125% Senior Secured Notes due 2017 and up to $250 million in aggregate principal amount of its 7.5% Senior Secured Notes due 2019. | ||||||||
(b) Senior Secured Notes due 2017 | ||||||||||||
Senior Secured Notes | On March 23, 2010, QVC issued $500 million principal amount of 7.125% Senior Secured Notes due 2017 at par. On March 18, 2013, $124 million of the 7.125% Senior Secured Notes due 2017 were tendered pursuant to the Offers, whereby holders of the 7.125% Senior Secured Notes due 2017 received consideration of $1,039.40 for each $1,000 principal amount of tendered 7.125% Senior Secured Notes due 2017. On April 17, 2013, QVC completed the redemption of the remaining $376 million principal amount of its 7.125% Senior Secured Notes due 2017, whereby holders received consideration of $1,035.63 for each $1,000 principal amount of tendered 7.125% Senior Secured Notes due 2017. | |||||||||||
On March 18, 2014, QVC issued $400 million principal amount of 3.125% Senior Secured Notes due 2019 at an issue price of 99.828% and $600 million principal amount of 4.850% Senior Secured Notes due 2024 at an issue price of 99.927% (collectively, the “Notes”). The Notes are secured by a first-priority lien on the capital stock of QVC, which is the same collateral that secures QVC's existing secured indebtedness and certain future indebtedness. The net proceeds from the offerings were used to repay indebtedness under QVC’s senior secured credit facility and for working capital and other general corporate purposes. Interest is payable semi-annually. | (c) Senior Secured Notes due 2019 | |||||||||||
Senior Secured Credit Facility | On September 25, 2009, QVC issued $1 billion principal amount of 7.5% Senior Secured Notes due 2019 at an issue price of 98.278%. On March 18, 2013, $231 million of the 7.5% Senior Secured Notes due 2019 were tendered pursuant to the Offers, whereby holders of the 7.5% Senior Secured Notes due 2019 received consideration of $1,120 for each $1,000 principal amount of tendered 7.5% Senior Secured Notes due 2019. The senior secured notes have equal priority to the senior secured credit facility. The notes are secured by the stock of QVC and certain of its subsidiaries. Interest is payable semi-annually. | |||||||||||
QVC had approximately $1.9 billion available under the terms of the Company's senior secured credit facility at June 30, 2014. The interest rate on the senior secured credit facility was 1.9% at June 30, 2014. | (d) Senior Secured Notes due 2020 | |||||||||||
Other Debt Related Information | On March 23, 2010, QVC issued $500 million principal amount of 7.375% Senior Secured Notes due 2020 at par. The senior secured notes have equal priority to the senior secured credit facility. The notes are secured by the stock of QVC and certain of its subsidiaries. Interest is payable semi-annually. | |||||||||||
QVC was in compliance with all of its debt covenants at June 30, 2014. | (e) Senior Secured Notes due 2022 | |||||||||||
During the quarter, there were no significant changes to QVC's debt credit ratings. | On July 2, 2012, QVC issued $500 million principal amount of 5.125% Senior Secured Notes due 2022 at par. The senior secured notes have equal priority to the senior secured credit facility. The notes are secured by the stock of QVC and certain of its subsidiaries. Interest is payable semi-annually. | |||||||||||
The weighted average rate applicable to all of the outstanding debt (excluding capital leases) was 5.5% as of June 30, 2014. | (f) Senior Secured Notes due 2023 and 2043 | |||||||||||
On March 18, 2013, QVC issued $750 million principal amount of 4.375% Senior Secured Notes due 2023 at an issue price of 99.968% and issued $300 million principal amount of 5.95% Senior Secured Notes due 2043 at an issue price of 99.973%. These notes are secured by the stock of QVC and have equal priority to the senior secured credit facility and QVC's other notes. Interest is payable semi-annually. | ||||||||||||
The net proceeds from the issuance of these instruments were used to reduce the outstanding principal under QVC's existing 7.125% Senior Secured Notes due 2017, the 7.5% Senior Secured Notes due 2019 and the senior secured credit facility, as well as for general corporate purposes. | ||||||||||||
(g) Senior Secured Credit Facility | ||||||||||||
On March 1, 2013, we amended and restated our senior secured credit facility, which provides for a $2.0 billion revolving credit facility with a $250 million sub-limit for standby letters of credit and $1.0 billion of uncommitted incremental revolving loan commitments or incremental term loans. QVC may elect that the loans extended under the senior secured credit facility bear interest at a rate per annum equal to the ABR Rate or LIBOR, as each is defined in the senior secured credit facility agreement, plus a margin of 0.25% to 2.00% depending on various factors. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. Any amounts prepaid on the revolving credit facility may be reborrowed. Payment of loans may be accelerated following certain customary events of default. The senior secured credit facility is a multi-currency facility. The senior secured credit facility is secured by the stock of QVC. We had $1.1 billion available under the terms of the senior secured credit facility at December 31, 2013. The interest rate on the senior secured credit facility was 1.9% at December 31, 2013. | ||||||||||||
The purpose of the amendment was to, among other things, extend the maturity of our senior secured credit facility to March 1, 2018 and lower the interest rate on borrowings. | ||||||||||||
The senior secured credit facility contains certain affirmative and negative covenants, including certain restrictions with respect to, among other things: incurring additional indebtedness; creating liens on property or assets; making certain loans or investments; selling or disposing of assets; paying certain dividends and other restricted payments; dissolving, consolidating or merging; entering into certain transactions with affiliates; entering into sale or leaseback transactions; restricting subsidiary distributions; and limiting QVC's ratio of consolidated total debt to consolidated Adjusted OIBDA (Adjusted OIBDA is defined in note 15). | ||||||||||||
(h) Interest Rate Swap Arrangements | ||||||||||||
In 2009 and 2011, QVC entered into several interest rate swap arrangements to mitigate the interest rate risk associated with interest payments related to its variable rate debt. QVC assessed the effectiveness of its interest rate swaps using the hypothetical derivative method. During 2013, 2012 and 2011, QVC's elected interest terms did not effectively match the terms of the swap arrangements. As a result, the swaps did not qualify as cash flow hedges. Changes in fair value of these interest rate swaps were included in gains on financial instruments in the consolidated statements of operations. In March 2013, QVC's notional interest rate swaps of $3.1 billion expired. | ||||||||||||
(i) Other Debt Related Information | ||||||||||||
As a result of the refinancing transactions discussed above, we incurred an extinguishment loss of $57 million for the year ended December 31, 2013, recorded as loss on extinguishment of debt in the consolidated statements of operations. | ||||||||||||
QVC was in compliance with all of its debt covenants at December 31, 2013. | ||||||||||||
During the year, there were no significant changes to QVC's debt credit ratings. | ||||||||||||
The weighted average rate applicable to all of the outstanding debt (excluding capital leases) was 5.0% as of December 31, 2013. | ||||||||||||
At December 31, 2013 and 2012, outstanding letters of credit totaled $26 million and $30 million, respectively. |
Leases_and_Transponder_Service
Leases and Transponder Service Agreements | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Leases and Transponder Service Agreements [Abstract] | ' | ' | ||||||||||
Leases of Lessee Disclosure | ' | ' | ||||||||||
Leases and Transponder Service Arrangements | Leases and Transponder Service Arrangements | |||||||||||
Future minimum payments under noncancelable operating leases and capital transponder leases with initial terms of one year or more at June 30, 2014 consisted of the following: | Future minimum payments under noncancelable operating leases and capital transponder leases with initial terms of one year or more at December 31, 2013 consisted of the following: | |||||||||||
(in millions) | Capital transponders | Operating leases | (in millions) | Capital transponders | Operating leases | |||||||
Remainder of 2014 | $ | 7 | 10 | 2014 | $ | 15 | 16 | |||||
2015 | 11 | 15 | 2015 | 11 | 14 | |||||||
2016 | 11 | 13 | 2016 | 11 | 12 | |||||||
2017 | 11 | 10 | 2017 | 11 | 10 | |||||||
2018 | 12 | 11 | 2018 | 12 | 10 | |||||||
Thereafter | 28 | 101 | Thereafter | 28 | 96 | |||||||
Total | $ | 80 | 160 | Total | $ | 88 | 158 | |||||
The Company has entered into ten separate agreements with transponder suppliers to transmit its signals in the U.S., Germany and the U.K. at an aggregate monthly cost of $1 million. Depreciation expense related to the transponders was $3 million for both the three months ended June 30, 2014 and 2013, respectively. For both the six months ended June 30, 2014 and 2013, depreciation expense related to the transponders was $6 million, respectively. Total future minimum capital lease payments of $80 million include $7 million of imputed interest. The transponder service agreements for our U.S. transponders expire in 2019 through 2020. The transponder service agreements for our international transponders expire in December 2014 through 2022. | We distribute our television programs, via satellite and optical fiber, to cable television and direct-to-home satellite system operators for retransmission to their subscribers in the U.S., Japan, Germany, the U.K. and neighboring countries. We also transmit our television programs over digital terrestrial broadcast television to viewers throughout Italy, the U.K. and to viewers in certain geographic regions in the U.S and Germany. In the U.S., we uplink our analog and digital programming transmissions using a third party service. Both transmissions are uplinked to protected, non-preemptible transponders on U.S. satellites. "Protected" status means that, in the event of a transponder failure, our signal will be transferred to a spare transponder or, if none is available, to a preemptible transponder located on the same satellite or, in certain cases, to a transponder on another satellite owned by the same service provider if one is available at the time of the failure. "Non-preemptible" status means that, in the event of a transponder failure, our transponders cannot be preempted in favor of a user of a failed transponder, even another user with "protected status." Our international business units each obtain uplinking services from third parties and transmit their programming to non-preemptible transponders on international satellites. Our transponder service agreements for our U.S. transponders expire at the earlier of the end of the lives of the satellites or the service agreements. The service agreements in the U.S. expire in 2019 through 2020. Our transponder service agreements for our international transponders expire in 2014 through 2022. | |||||||||||
Expenses for operating leases, principally for data processing equipment and facilities and for satellite uplink service agreements, amounted to $7 million and $6 million for the three months ended June 30, 2014 and 2013, respectively. For both the six months ended June 30, 2014 and 2013, expenses for operating leases was $14 million, respectively. | The Company has entered into ten separate agreements with transponder suppliers to transmit its signals in the U.S., Germany and the U.K. at an aggregate monthly cost of $1 million. Depreciation expense related to the transponders was $12 million, $11 million and $14 million for the years ended December 31, 2013, 2012 and 2011, respectively. Total future minimum capital lease payments of $88 million include $9 million of imputed interest. | |||||||||||
QVC's ability to continue to sell products to its customers is dependent on its ability to maintain uninterrupted broadcast. | ||||||||||||
Expenses for operating leases, principally for data processing equipment and facilities and for satellite uplink service agreements, amounted to $28 million, $31 million and $24 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
The Company entered into a 21 year operating lease for its QVC-U.K. headquarters that commenced in 2012, which is included in the future minimum operating lease payments in the above table. |
Income_Taxes
Income Taxes | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | ' | |||||||
Income Tax Disclosure | ' | ' | |||||||
Income Taxes | Income Taxes | ||||||||
The Company calculates its interim income tax provision by applying its best estimate of the annual expected effective tax rate to its ordinary year-to-date income or loss. The tax or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. | Income tax expense (benefit) consisted of the following: | ||||||||
The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent and temporary differences as a result of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the tax environment changes. To the extent that the estimated annual effective tax rate changes during a quarter, the effect of the change on the prior quarters is included in the tax expense for the current quarter. | |||||||||
For the three months ended June 30, 2014, the Company recorded a tax provision of $83 million, which represented an effective tax rate of 37.2%. For the six months ended June 30, 2014, the Company recorded a tax provision of $157 million, which represented an effective tax rate of 37.5%. These rates differ from the U.S. federal income tax rate of 35.0% due primarily to state tax expense. | |||||||||
QVC is party to ongoing discussions with the Internal Revenue Service under the Compliance Assurance Process audit program. The Company files Federal tax returns on a consolidated basis with its parent company, Liberty. The Company, or one of its subsidiaries, files income tax returns in various states and foreign jurisdictions. As of June 30, 2014, the Company, or one of its subsidiaries, was under examination in California, Minnesota, New Jersey, New York, the City of New York and Pennsylvania, as well as in Germany, the U.K, and Italy. | Years ended December 31, | ||||||||
The amounts of the tax-related balances due to Liberty at June 30, 2014 and December 31, 2013 were $22 million and $78 million, respectively, and were included in accrued liabilities in the accompanying condensed consolidated balance sheets. | (in millions) | 2013 | 2012 | 2011 | |||||
The Company previously entered into a Tax Liability Allocation and Indemnification Agreement (the “Tax Agreement”) with Liberty. The Tax Agreement establishes the methodology for the calculation and payment of income taxes in connection with the consolidation of the Company with Liberty for income tax purposes. Generally, the Tax Agreement provides that the Company will pay Liberty an amount equal to the tax liability, if any, that it would have if it were to file as a consolidated group separate and apart from Liberty, with exceptions for the treatment and timing of certain items, including but not limited to deferred intercompany transactions, credits, and net operating and capital losses. To the extent that the separate company tax expense is different from the payment terms of the Tax Agreement, the difference is recorded as either a dividend or capital contribution. | |||||||||
Current: | |||||||||
U.S. federal | $ | 361 | 369 | 313 | |||||
State and local | 22 | 23 | 28 | ||||||
Foreign jurisdiction | 78 | 136 | 117 | ||||||
Total | 461 | 528 | 458 | ||||||
Deferred: | |||||||||
U.S. federal | (107 | ) | (121 | ) | (97 | ) | |||
State and local | (7 | ) | (7 | ) | (15 | ) | |||
Foreign jurisdiction | 6 | (6 | ) | (4 | ) | ||||
Total | (108 | ) | (134 | ) | (116 | ) | |||
Total income tax expense | $ | 353 | 394 | 342 | |||||
Pre-tax income was as follows: | |||||||||
Years ended December 31, | |||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||
QVC-U.S. | $ | 824 | 865 | 785 | |||||
QVC-Japan | 181 | 253 | 199 | ||||||
QVC-Germany | 18 | 29 | 32 | ||||||
QVC-U.K. | 1 | (17 | ) | (2 | ) | ||||
QVC-Italy | (38 | ) | (49 | ) | (60 | ) | |||
Consolidated QVC | $ | 986 | 1,081 | 954 | |||||
Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following: | |||||||||
Years ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Provision at statutory rate | 35 | % | 35 | % | 35 | % | |||
State income taxes, net of federal benefit | 0.7 | % | 1 | % | 0.9 | % | |||
Foreign taxes | 0.6 | % | 1.3 | % | 1.3 | % | |||
Foreign earnings repatriation | (0.4 | )% | (1.1 | )% | (1.1 | )% | |||
Permanent differences | — | % | 0.1 | % | — | % | |||
Other, net | (0.1 | )% | 0.1 | % | (0.3 | )% | |||
Total income tax expense | 35.8 | % | 36.4 | % | 35.8 | % | |||
The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: | |||||||||
December 31, | |||||||||
(in millions) | 2013 | 2012 | |||||||
Deferred tax assets: | |||||||||
Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts | $ | 32 | 29 | ||||||
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 | 36 | 39 | |||||||
Allowance for sales returns | 39 | 33 | |||||||
Deferred compensation | 36 | 27 | |||||||
Unrecognized federal and state tax benefits | 29 | 31 | |||||||
Accrued liabilities | 25 | 29 | |||||||
Other | 36 | 42 | |||||||
Subtotal | 233 | 230 | |||||||
Valuation allowance | (1 | ) | (1 | ) | |||||
Total deferred tax assets | 232 | 229 | |||||||
Deferred tax liabilities: | |||||||||
Depreciation and amortization | (1,349 | ) | (1,455 | ) | |||||
Cumulative translation of foreign currencies | (47 | ) | (33 | ) | |||||
Total deferred tax liabilities | (1,396 | ) | (1,488 | ) | |||||
Net deferred tax liability | $ | (1,164 | ) | (1,259 | ) | ||||
In the above table, valuation allowances exist due, in part, to the uncertainty of whether or not the benefit of certain foreign tax credits will ultimately be utilized for income tax purposes. | |||||||||
The Company has recognized tax benefits from the exercise of employee stock options that reduced taxes payable and were credited to additional paid-in capital. The amount of the tax benefits is reported in the consolidated statements of equity. | |||||||||
The Company entered into a Tax Liability Allocation and Indemnification Agreement (the "Tax Agreement"), dated April 26, 2004, with Liberty. The Tax Agreement establishes the methodology for the calculation and payment of income taxes in connection with the consolidation of the Company with Liberty for income tax purposes. Generally, the Tax Agreement provides that the Company will pay Liberty an amount equal to the tax liability, if any, that it would have if it were to file as a consolidated group separate and apart from Liberty, with exceptions for the treatment and timing of certain items, including but not limited to deferred intercompany transactions, credits, and net operating and capital losses. To the extent that the separate company tax expense is different from the payment terms of the Tax Agreement, the difference is recorded as either a dividend or capital contribution. The differences recorded during the years ended December 31, 2013, 2012 and 2011 were $45 million, $47 million and $10 million in dividends, respectively, and related primarily to foreign tax credits recognized by QVC that are creditable under the Tax Agreement when and if utilized in Liberty's consolidated tax return. The amounts of the tax-related balance due to Liberty at December 31, 2013 and 2012 were $78 million and $70 million, respectively, and are included in accrued liabilities in the consolidated balance sheets. | |||||||||
The Company has provided for U.S. income taxes on the undistributed earnings of foreign subsidiaries. The Company expects the amount of foreign tax credits available on those undistributed earnings to offset the U.S. income tax liability and to result in an incremental benefit related to the increased utilization of foreign tax credits. The amount of the U.S. income tax benefit recorded in the years ended December 31, 2013, 2012 and 2011 on those undistributed earnings was $3 million, $12 million and $10 million, respectively. | |||||||||
A reconciliation of the 2013 beginning and ending amount of the liability for unrecognized tax benefits is as follows: | |||||||||
(in millions) | |||||||||
Balance at January 1, 2013 | 95 | ||||||||
Decreases related to prior year tax positions | (11 | ) | |||||||
Increases related to current year tax positions | 12 | ||||||||
Settlements | (7 | ) | |||||||
Balance at December 31, 2013 | 89 | ||||||||
Included in the balance of unrecognized tax benefits at December 31, 2013 are potential benefits of $58 million (net of a $31 million federal tax effect) that, if recognized, would affect the effective rate on income from continuing operations. | |||||||||
The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other income (expense) in the consolidated statements of operations. The Company did not have a material amount of interest accrued related to unrecognized tax benefits or tax penalties. | |||||||||
The Company has tax positions for which the amount of related unrecognized tax benefits could change during 2014. These include federal transfer pricing and nonfederal tax issues. The amount of unrecognized tax benefits related to these issues could have a net decrease of $24 million in 2014 as a result of potential settlements, lapsing of statute of limitations and revisions of settlement estimates. | |||||||||
The Company participates in a consolidated federal return filing with Liberty. As of December 31, 2013, the Company's tax years through 2009 are closed for federal income tax purposes, and the IRS has completed its examination of the Company's 2010, 2011, and 2012 tax years. The Company's 2013 tax year is being examined currently as part of the Liberty consolidated return under the IRS's Compliance Assurance Process ("CAP") program. The Company, or one of its subsidiaries, files income tax returns in various states and foreign jurisdictions. As of December 31, 2013, the Company, or one of its subsidiaries, was under examination in California, Minnesota, New Jersey, New York, the City of New York and Pennsylvania, as well as in Germany and the U.K. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Commitments and Contingencies | ' | ' |
Commitments and Contingencies | Commitments and Contingencies | |
The Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that the amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements. | The Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that the amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the consolidated financial statements. | |
Network and information systems, including the Internet and telecommunication systems, third party delivery services and other technologies are critical to our business activities. Substantially all our customer orders, fulfillment and delivery services are dependent upon the use of network and information systems, including the use of third party telecommunication and delivery service providers. If information systems including the Internet or telecommunication services are disrupted, or if the third party delivery services experience a disruption in their transportation delivery services, we could face a significant disruption in fulfilling our customer orders and shipment of our products. We have active disaster recovery programs in place to help mitigate risks associated with these critical business activities. | Network and information systems, including the Internet and telecommunication systems, third party delivery services and other technologies are critical to our business activities. Substantially all our customer orders, fulfillment and delivery services are dependent upon the use of network and information systems, including the use of third party telecommunication and delivery service providers. If information systems including the Internet or telecommunication services are disrupted, or if the third party delivery services experience a disruption in their transportation delivery services, we could face a significant disruption in fulfilling our customer orders and shipment of our products. We have active disaster recovery programs in place to help mitigate risks associated with these critical business activities. |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | ||||||||||||||||||
Fair Value Disclosures | ' | ' | ||||||||||||||||||
Assets and Liabilities Measured at Fair Value | Assets and Liabilities Measured at Fair Value | |||||||||||||||||||
For assets and liabilities required to be reported or disclosed at fair value, U.S. GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. | For assets and liabilities required to be reported or disclosed at fair value, U.S. GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. | |||||||||||||||||||
The Company's assets and liabilities measured or disclosed at fair value were as follows: | The Company's assets and liabilities measured or disclosed at fair value were as follows: | |||||||||||||||||||
Fair value measurements | Fair value measurements | |||||||||||||||||||
at June 30, 2014 using | at December 31, 2013 using | |||||||||||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | (in millions) | Total | Quoted prices | Significant | Significant | |||||||||||
in active | other | unobservable | in active | other | unobservable | |||||||||||||||
markets for | observable | inputs | markets for | observable | inputs | |||||||||||||||
identical | inputs | (Level 3) | identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | assets | (Level 2) | |||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||||
Cash equivalents | $ | 463 | 463 | — | — | Cash equivalents | $ | 342 | 342 | — | — | |||||||||
Long-term liabilities: | Long-term liabilities: | |||||||||||||||||||
Debt (note 6) | 4,071 | — | 4,071 | — | Debt (note 8) | 3,783 | — | 3,783 | — | |||||||||||
Fair value measurements | Fair value measurements | |||||||||||||||||||
at December 31, 2013 using | at December 31, 2012 using | |||||||||||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | (in millions) | Total | Quoted prices | Significant | Significant | |||||||||||
in active | other | unobservable | in active | other | unobservable | |||||||||||||||
markets for | observable | inputs | markets for | observable | inputs | |||||||||||||||
identical | inputs | (Level 3) | identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | assets | (Level 2) | |||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||||
Cash equivalents | $ | 342 | 342 | — | — | Cash equivalents | $ | 424 | 424 | — | — | |||||||||
Long-term liabilities: | Interest rate swap arrangements (note 8) | 1 | — | 1 | — | |||||||||||||||
Debt (note 6) | 3,783 | — | 3,783 | — | Current liabilities: | |||||||||||||||
The majority of the Company's Level 2 financial assets and liabilities are debt instruments with quoted market prices that are not considered to be traded on "active markets," as defined in U.S. GAAP. Accordingly, the financial instruments are reported in the foregoing tables as Level 2 fair value instruments. | Interest rate swap arrangements (note 8) | 13 | — | 13 | — | |||||||||||||||
Long-term liabilities: | ||||||||||||||||||||
Debt (note 8) | 3,626 | — | 3,626 | — | ||||||||||||||||
The majority of the Company's Level 2 financial assets and liabilities are debt instruments with quoted market prices that are not considered to be traded on "active markets," as defined in U.S. GAAP. Accordingly, the financial instruments are reported in the foregoing tables as Level 2 fair value instruments. | ||||||||||||||||||||
U.S. GAAP requires the incorporation of a credit risk valuation adjustment in the Company's fair value measurements to estimate the impact of both its own nonperformance risk and the nonperformance risk of its counterparties. The Company estimates credit risk associated with its own and its counterparties' nonperformance primarily by using observable credit default swap rates for terms similar to those of the remaining life of the instrument, adjusted for any master netting arrangements or other factors that provide an estimate of nonperformance risk. These are Level 3 inputs. However, as the credit risk valuation adjustments were not significant, the Company reported its interest rate swaps as Level 2. The counterparties to the Company's interest rate swap arrangements were all major international financial institutions. |
Information_about_QVCs_Operati
Information about QVC's Operating Segments | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ' | |||||||||||||||||||||||||||||||
Segment Reporting Disclosure | ' | ' | |||||||||||||||||||||||||||||||
Information about QVC's Operating Segments | Information about QVC's Operating Segments | ||||||||||||||||||||||||||||||||
Each of the Company's operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the Internet and mobile applications in certain markets. The Company has operations in the United States, Japan, Germany, the United Kingdom and Italy. The Company has identified five reportable segments: the United States, Japan, Germany, the United Kingdom and Italy. | Each of the Company's operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the Internet and mobile applications in certain markets. The Company has operations in the U.S., Japan, Germany, the U.K. and Italy. As such, the Company has identified five reportable segments: the U.S., Japan, Germany, the U.K. and Italy. | ||||||||||||||||||||||||||||||||
The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units shipped and revenue or sales per subscriber equivalent. The Company defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its segments, including the ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among our businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization and stock-based compensation, that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP. | The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units shipped and revenue or sales per subscriber equivalent. The Company defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its segments, including the ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among our businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization and stock-based compensation, that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP. | ||||||||||||||||||||||||||||||||
Performance measures | Performance measures | ||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | Net | Adjusted | (in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | ||||||||||||||||||
revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | ||||||||||||||||||||
QVC-U.S. | $ | 1,352 | 325 | 1,312 | 320 | 2,657 | 626 | 2,609 | 611 | QVC-U.S. | $ | 5,844 | 1,352 | 5,585 | 1,292 | 5,412 | 1,225 | ||||||||||||||||
QVC-Japan | 223 | 43 | 260 | 57 | 457 | 90 | 516 | 111 | QVC-Japan | 1,024 | 212 | 1,247 | 279 | 1,127 | 241 | ||||||||||||||||||
QVC-Germany | 227 | 40 | 207 | 35 | 477 | 79 | 457 | 78 | QVC-Germany | 971 | 173 | 956 | 179 | 1,068 | 199 | ||||||||||||||||||
QVC-U.K. | 178 | 33 | 153 | 26 | 343 | 60 | 293 | 45 | QVC-U.K. | 657 | 118 | 641 | 104 | 626 | 111 | ||||||||||||||||||
QVC-Italy | 34 | (2 | ) | 29 | (4 | ) | 66 | (4 | ) | 60 | (7 | ) | QVC-Italy | 127 | (14 | ) | 87 | (26 | ) | 35 | (43 | ) | |||||||||||
Consolidated QVC | $ | 2,014 | 439 | 1,961 | 434 | 4,000 | 851 | 3,935 | 838 | Consolidated QVC | $ | 8,623 | 1,841 | 8,516 | 1,828 | 8,268 | 1,733 | ||||||||||||||||
Net revenue amounts by product category are not available from our general purpose financial statements. | Net revenue amounts by product category are not available from our general purpose financial statements. | ||||||||||||||||||||||||||||||||
Other information | Other information | ||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | (in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | ||||||||||||||||||
QVC-U.S. | $ | 14 | 99 | 14 | 91 | 27 | 192 | 27 | 179 | QVC-U.S. | $ | 55 | 362 | 51 | 338 | 52 | 376 | ||||||||||||||||
QVC-Japan | 4 | 2 | 5 | 2 | 9 | 4 | 8 | 4 | QVC-Japan | 23 | 9 | 16 | 10 | 29 | 12 | ||||||||||||||||||
QVC-Germany | 8 | 8 | 8 | 9 | 16 | 19 | 16 | 18 | QVC-Germany | 30 | 38 | 31 | 33 | 33 | 36 | ||||||||||||||||||
QVC-U.K. | 4 | 3 | 5 | 3 | 8 | 7 | 9 | 6 | QVC-U.K. | 12 | 14 | 21 | 12 | 13 | 11 | ||||||||||||||||||
QVC-Italy | 3 | — | 1 | 2 | 6 | 1 | 3 | 4 | QVC-Italy | 7 | 8 | 7 | 7 | 8 | 4 | ||||||||||||||||||
Consolidated QVC | $ | 33 | 112 | 33 | 107 | 66 | 223 | 63 | 211 | Consolidated QVC | $ | 127 | 431 | 126 | 400 | 135 | 439 | ||||||||||||||||
Six months ended June 30, | Year ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(in millions) | Total | Capital | Total | Capital | (in millions) | Total | Capital | Total | Capital | ||||||||||||||||||||||||
assets | expenditures, net | assets | expenditures, net | assets | expenditures | assets | expenditures | ||||||||||||||||||||||||||
QVC-U.S. | $ | 9,933 | 38 | 10,322 | 123 | QVC-U.S. | $ | 10,322 | 123 | 10,541 | 88 | ||||||||||||||||||||||
QVC-Japan | 732 | (1 | ) | 732 | 16 | QVC-Japan | 732 | 16 | 969 | 105 | |||||||||||||||||||||||
QVC-Germany | 1,103 | 4 | 1,109 | 28 | QVC-Germany | 1,109 | 28 | 1,064 | 25 | ||||||||||||||||||||||||
QVC-U.K. | 628 | 6 | 613 | 16 | QVC-U.K. | 613 | 16 | 619 | 22 | ||||||||||||||||||||||||
QVC-Italy | 271 | 10 | 280 | 28 | QVC-Italy | 280 | 28 | 245 | 6 | ||||||||||||||||||||||||
Consolidated QVC | $ | 12,667 | 57 | 13,056 | 211 | Consolidated QVC | $ | 13,056 | 211 | 13,438 | 246 | ||||||||||||||||||||||
Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | ||||||||||||||||||||||||||||||||
June 30, | December 31, | December 31, | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
QVC-U.S. | $ | 448 | 429 | ||||||||||||||||||||||||||||||
QVC-U.S. | $ | 436 | 448 | ||||||||||||||||||||||||||||||
QVC-Japan | 220 | 280 | |||||||||||||||||||||||||||||||
QVC-Japan | 218 | 220 | |||||||||||||||||||||||||||||||
QVC-Germany | 244 | 247 | |||||||||||||||||||||||||||||||
QVC-Germany | 225 | 244 | |||||||||||||||||||||||||||||||
QVC-U.K. | 129 | 128 | |||||||||||||||||||||||||||||||
QVC-U.K. | 129 | 129 | |||||||||||||||||||||||||||||||
QVC-Italy | 65 | 47 | |||||||||||||||||||||||||||||||
QVC-Italy | 68 | 65 | |||||||||||||||||||||||||||||||
Consolidated QVC | $ | 1,106 | 1,131 | ||||||||||||||||||||||||||||||
Consolidated QVC | $ | 1,076 | 1,106 | ||||||||||||||||||||||||||||||
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | |||||||||||||||||||||||||||||||||
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | |||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | (in millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Adjusted OIBDA | $ | 1,841 | 1,828 | 1,733 | |||||||||||||||||||||||||||||
Adjusted OIBDA | $ | 439 | 434 | 851 | 838 | ||||||||||||||||||||||||||||
Stock‑based compensation | (38 | ) | (34 | ) | (22 | ) | |||||||||||||||||||||||||||
Stock‑based compensation | (10 | ) | (9 | ) | (18 | ) | (19 | ) | Depreciation and amortization | (558 | ) | (526 | ) | (574 | ) | ||||||||||||||||||
Depreciation and amortization | (145 | ) | (140 | ) | (289 | ) | (274 | ) | Equity in losses of investee | (4 | ) | (4 | ) | (2 | ) | ||||||||||||||||||
Equity in losses of investee | (2 | ) | (2 | ) | (3 | ) | (1 | ) | Gains on financial instruments | 15 | 48 | 50 | |||||||||||||||||||||
Gains on financial instruments | — | 3 | — | 15 | |||||||||||||||||||||||||||||
Interest expense, net | (214 | ) | (233 | ) | (229 | ) | |||||||||||||||||||||||||||
Interest expense, net | (60 | ) | (50 | ) | (122 | ) | (113 | ) | Foreign currency gain (loss) | 1 | 2 | (2 | ) | ||||||||||||||||||||
Foreign currency gain (loss) | 1 | — | — | (1 | ) | ||||||||||||||||||||||||||||
Loss on extinguishment of debt | (57 | ) | — | — | |||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | (16 | ) | — | (57 | ) | |||||||||||||||||||||||||||
Income before income taxes | $ | 986 | 1,081 | 954 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 223 | 220 | 419 | 388 | ||||||||||||||||||||||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 6 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ||||||||||||||
Comprehensive Income (Loss) | ' | ' | ||||||||||||||
Other Comprehensive Income | Other Comprehensive Income | |||||||||||||||
The change in the component of accumulated other comprehensive income, net of taxes ("AOCI"), is summarized as follows: | The change in the component of accumulated other comprehensive income, net of taxes ("AOCI"), is summarized as follows: | |||||||||||||||
(in millions) | Foreign currency translation adjustments | AOCI | (in millions) | Foreign currency translation adjustments | AOCI | |||||||||||
Balance at January 1, 2013 | $ | 186 | 186 | Balance at January 1, 2011 | $ | 209 | 209 | |||||||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (88 | ) | (88 | ) | Other comprehensive loss attributable to QVC, Inc. shareholder | (15 | ) | (15 | ) | |||||||
Balance at June 30, 2013 | 98 | 98 | Balance at December 31, 2011 | 194 | 194 | |||||||||||
Other comprehensive loss attributable to QVC, Inc. shareholder | (8 | ) | (8 | ) | ||||||||||||
Balance at January 1, 2014 | $ | 139 | 139 | Balance at December 31, 2012 | 186 | 186 | ||||||||||
Other comprehensive income attributable to QVC, Inc. stockholder | 15 | 15 | Other comprehensive loss attributable to QVC, Inc. shareholder | (47 | ) | (47 | ) | |||||||||
Balance at December 31, 2013 | 139 | 139 | ||||||||||||||
Balance at June 30, 2014 | 154 | 154 | ||||||||||||||
The component of other comprehensive income is reflected in QVC's consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive income: | ||||||||||||||||
The component of other comprehensive income is reflected in QVC's condensed consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive income: | ||||||||||||||||
(in millions) | Before-tax amount | Tax (expense) benefit | Net-of-tax amount | |||||||||||||
(in millions) | Before-tax amount | Tax (expense) benefit | Net-of-tax amount | |||||||||||||
Year ended December 31, 2013: | ||||||||||||||||
Three months ended June 30, 2014: | ||||||||||||||||
Foreign currency translation adjustments | $ | (64 | ) | (8 | ) | (72 | ) | |||||||||
Foreign currency translation adjustments | $ | 2 | — | 2 | Other comprehensive loss | (64 | ) | (8 | ) | (72 | ) | |||||
Other comprehensive income | 2 | — | 2 | Year ended December 31, 2012: | ||||||||||||
Foreign currency translation adjustments | $ | (48 | ) | 21 | (27 | ) | ||||||||||
Three months ended June 30, 2013: | ||||||||||||||||
Other comprehensive loss | (48 | ) | 21 | (27 | ) | |||||||||||
Foreign currency translation adjustments | $ | (13 | ) | (3 | ) | (16 | ) | |||||||||
Other comprehensive loss | (13 | ) | (3 | ) | (16 | ) | ||||||||||
Year ended December 31, 2011: | ||||||||||||||||
Six months ended June 30, 2014: | ||||||||||||||||
Foreign currency translation adjustments | $ | (20 | ) | 10 | (10 | ) | ||||||||||
Foreign currency translation adjustments | $ | 21 | (3 | ) | 18 | |||||||||||
Other comprehensive loss | (20 | ) | 10 | (10 | ) | |||||||||||
Other comprehensive income (loss) | 21 | (3 | ) | 18 | ||||||||||||
Six months ended June 30, 2013: | ||||||||||||||||
Foreign currency translation adjustments | $ | (129 | ) | 22 | (107 | ) | ||||||||||
Other comprehensive (loss) income | (129 | ) | 22 | (107 | ) | |||||||||||
Subsequent_Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' | ' |
Subsequent Events | ' | ' |
Subsequent Event | ||
Subsequent Events | QVC declared and paid dividends to Liberty in the amount of $108 million subsequent to December 31, 2013. | |
QVC declared and paid dividends to Liberty in the amount of $1.4 billion subsequent to June 30, 2014. | ||
GuarantorNonGuarantor_Subsidia
Guarantor/Non-Guarantor Subsidiary Financial Information | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | ' | ' | ||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information | ' | ' | ||||||||||||||||||||||
Guarantor/Non-guarantor Subsidiary Financial Information | (19) Guarantor/Non-guarantor Subsidiary Financial Information | |||||||||||||||||||||||
The following information contains the condensed consolidating financial statements for the Company, the parent on a stand-alone basis (QVC, Inc.), the combined subsidiary guarantors (Affiliate Relations Holdings, Inc.; Affiliate Investment, Inc.; AMI 2, Inc.; ER Marks, Inc.; QVC International LLC; QVC Rocky Mount, Inc. and QVC San Antonio, LLC) and the combined non-guarantor subsidiaries pursuant to Rule 3-10 of Regulation S-X. Certain non-guarantor subsidiaries are majority-owned by QVC International LLC, which is a guarantor subsidiary. | The following information contains the consolidating financial statements for the Company, the parent on a stand-alone basis (QVC, Inc.), the combined subsidiary guarantors (Affiliate Relations Holdings, Inc.; Affiliate Investment, Inc.; AMI 2, Inc.; ER Marks, Inc.; QVC International LLC; QVC Rocky Mount, Inc. and QVC San Antonio, LLC) and the combined non-guarantor subsidiaries pursuant to Rule 3-10 of Regulation S-X. Certain non-guarantor subsidiaries are majority-owned by QVC International LLC, which is a guarantor subsidiary. | |||||||||||||||||||||||
These condensed consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the Company's condensed consolidated financial statements. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, such as management fees, royalty revenue and expense, interest income and expense and gains on intercompany asset transfers. Goodwill and other intangible assets have been allocated to the subsidiaries based on management’s estimates. Certain costs have been partially allocated to all of the subsidiaries of the Company. | These consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the Company's consolidated financial statements. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, such as management fees, royalty revenue and expense and interest income and expense. Goodwill and other intangible assets have been allocated to the subsidiaries based on management’s estimates. Certain costs have been partially allocated to all of the subsidiaries of the Company. | |||||||||||||||||||||||
During the three months ended June 30, 2014, an intangible asset held by certain non-guarantor subsidiaries was sold to QVC, Inc. resulting in a gain of $20 million reflected in intercompany interest and other income for the non-guarantor subsidiaries and also included in equity in earnings of subsidiaries for the subsidiary guarantors. The gain is eliminated in the eliminations column. The impact of these earnings has been eliminated in the presentation of intangible assets and equity in earnings of subsidiaries of the parent company. | The subsidiary guarantors are 100% owned by the Company. All guarantees are full and unconditional and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its U.S. subsidiaries, including the guarantors, by dividend or loan. The Company has not presented separate notes and other disclosures concerning the subsidiary guarantors as the Company has determined that such material information is available in the notes to the Company's consolidated financial statements. | |||||||||||||||||||||||
The subsidiary guarantors are 100% owned by the Company. All guarantees are full and unconditional and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its U.S. subsidiaries, including the guarantors, by dividend or loan. The Company has not presented separate notes and other disclosures concerning the subsidiary guarantors as the Company has determined that such material information is available in the notes to the Company's condensed consolidated financial statements. | The Company adjusted the previously reported consolidating financial statements to correctly classify transactions among QVC Inc., the combined subsidiary guarantors and the combined non-guarantor subsidiaries. | |||||||||||||||||||||||
The Company adjusted the previously reported consolidating financial statements to correctly classify transactions among QVC Inc., the combined subsidiary guarantors and the combined non-guarantor subsidiaries. | The adjustments to the consolidating balance sheets: | |||||||||||||||||||||||
The adjustments to the condensed consolidating statements of operations: | ||||||||||||||||||||||||
• | increased intercompany accounts receivable of the combined non-guarantor subsidiaries by $650 million and increased intercompany accounts payable of QVC, Inc. by $1,055 million related to cumulative revenue net of cumulative cost of goods sold and cumulative operating expenses, which have been attributed from QVC, Inc. to the combined non-guarantor subsidiaries as of December 31, 2012; and | |||||||||||||||||||||||
• | attributed net revenue of $58 million and operating expenses of $9 million from QVC, Inc. to the combined non-guarantor subsidiaries for the three months ended June 30, 2013; | |||||||||||||||||||||||
• | increased shareholder’s equity for the combined subsidiary guarantors by $405 million and combined non-guarantor subsidiaries by $650 million with an equal and offsetting increase in the investment in subsidiaries of QVC, Inc. and its corresponding elimination as of December 31, 2012. | |||||||||||||||||||||||
• | recognized equal and offsetting increases in the equity in earnings of subsidiaries of QVC, Inc. with a corresponding elimination for the three months ended June 30, 2013; | The adjustments to the consolidating statements of operations: | ||||||||||||||||||||||
• | attributed net revenue of $112 million, cost of goods sold of $11 million and operating expenses of $17 million from QVC, Inc. to the combined non-guarantor subsidiaries for the six months ended June 30, 2013; and | • | attributed $231 million and $199 million of revenue, $69 million and $73 million of cost of goods sold and $33 million and $25 million in operating expenses for the years ended 2012 and 2011, respectively, from QVC, Inc. to the combined non-guarantor subsidiaries and recognized equal and offsetting increases in the equity in earnings of subsidiaries of QVC, Inc.; and | |||||||||||||||||||||
• | recognized equal and offsetting increases in the equity in earnings of subsidiaries of QVC, Inc. with a corresponding elimination for the six months ended June 30, 2013. | • | recognized $63 million and $52 million for the years ended 2012 and 2011, respectively, in net income attributable to noncontrolling interests of QVC, Inc. and eliminated that income in consolidation. | |||||||||||||||||||||
The adjustments to the condensed consolidating statements of cash flows for the six months ended June 30, 2013: | The adjustments to the condensed consolidating statements of cash flows: | |||||||||||||||||||||||
• | attributed net cash provided by operating activities of $83 million from QVC, Inc. to the combined non-guarantor subsidiaries primarily related to revenue net of cost of goods sold and operating expenses; | • | attributed net cash provided by operating activities from QVC, Inc. to the combined non-guarantor subsidiaries primarily related to revenue net of cost of goods sold and operating expenses of $156 million and $103 million for the years ended 2012 and 2011, respectively; | |||||||||||||||||||||
• | decreased net cash provided by investing activities of $34 million of QVC, Inc. with an equal and offsetting elimination; and | • | increased net cash provided by the investing activities of QVC, Inc. of $101 million for the year ended 2012, decreased net cash used in the investing activities of QVC, Inc. of $37 million for the year ended 2011 and increased net cash provided by the investing activities of the combined subsidiary guarantors of $49 million for the year ended 2012, all with equal and offsetting eliminations; and | |||||||||||||||||||||
• | increased net cash provided by financing activities of $117 million of QVC, Inc. and decreased net cash used in financing activities of $83 million of the non-guarantor subsidiaries, all with equal and offsetting eliminations. | • | increased net cash provided by the financing activities of QVC, Inc. of $55 million and $140 million for the years ended 2012 and 2011, respectively, decreased net cash used in the financing activities of the combined subsidiary guarantors of $48 million for the year ended 2012 and decreased net cash used in the financing activities of the non-guarantor subsidiaries of $152 million and $106 million for the years ended 2012 and 2011, respectively, all with equal and offsetting eliminations. | |||||||||||||||||||||
The adjustments had no impact to the Company's condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statements of comprehensive income, condensed consolidated statements of changes in equity or condensed consolidated statements of cash flows for any current and previously reported period. | The adjustments had no impact to the Company's consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income, consolidated statements of changes in equity or consolidated statements of cash flows for any current and previously reported period. | |||||||||||||||||||||||
The effect of the adjustment on equity as of January 1, 2012 was as follows: | ||||||||||||||||||||||||
Condensed consolidating balance sheets | ||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
June 30, 2014 | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | As previously reported | $ | 7,890 | 3,465 | 1,716 | (5,052 | ) | 8,019 | |||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Assets | Adjustment | — | 450 | 465 | (915 | ) | — | |||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Adjusted | $ | 7,890 | 3,915 | 2,181 | (5,967 | ) | 8,019 | |||||||||||||||||
Cash and cash equivalents | $ | 18 | 162 | 368 | — | 548 | ||||||||||||||||||
Consolidating balance sheets | ||||||||||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||||||||||||||
Accounts receivable, net | 490 | — | 266 | — | 756 | December 31, 2013 | ||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
Inventories | 725 | — | 264 | — | 989 | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Deferred income taxes | 147 | — | 18 | — | 165 | Assets | ||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Prepaid expenses | 28 | — | 29 | — | 57 | |||||||||||||||||||
Cash and cash equivalents | $ | 78 | 133 | 246 | — | 457 | ||||||||||||||||||
Total current assets | 1,419 | 162 | 948 | — | 2,529 | |||||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||||||||||||||
Property and equipment, net | 253 | 66 | 757 | — | 1,076 | |||||||||||||||||||
Accounts receivable, net | 816 | — | 295 | — | 1,111 | |||||||||||||||||||
Cable and satellite television distribution rights, net | — | 441 | 99 | — | 540 | |||||||||||||||||||
Inventories | 684 | — | 247 | — | 931 | |||||||||||||||||||
Goodwill | 4,169 | — | 1,041 | — | 5,210 | |||||||||||||||||||
Deferred income taxes | 146 | — | 16 | — | 162 | |||||||||||||||||||
Other intangible assets, net | 1,092 | 2,049 | 102 | — | 3,243 | |||||||||||||||||||
Prepaid expenses | 20 | — | 27 | — | 47 | |||||||||||||||||||
Other noncurrent assets | 9 | — | 60 | — | 69 | |||||||||||||||||||
Total current assets | 1,755 | 133 | 834 | — | 2,722 | |||||||||||||||||||
Investments in subsidiaries | 4,893 | 1,601 | — | (6,494 | ) | — | ||||||||||||||||||
Property, plant and equipment, net | 265 | 67 | 774 | — | 1,106 | |||||||||||||||||||
Total assets | $ | 11,835 | 4,319 | 3,007 | (6,494 | ) | 12,667 | |||||||||||||||||
Cable and satellite television distribution rights, net | — | 510 | 114 | — | 624 | |||||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Current liabilities: | Goodwill | 4,169 | — | 1,028 | — | 5,197 | ||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 9 | — | 11 | Other intangible assets, net | 1,128 | 2,050 | 158 | — | 3,336 | ||||||||||||
Accounts payable-trade | 275 | — | 195 | — | 470 | Other noncurrent assets | 8 | — | 63 | — | 71 | |||||||||||||
Accrued liabilities | 150 | 86 | 507 | — | 743 | Investments in subsidiaries | 4,894 | 1,628 | — | (6,522 | ) | — | ||||||||||||
Intercompany accounts payable (receivable) | 1,084 | (814 | ) | (270 | ) | — | — | Total assets | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | |||||||||
Total current liabilities | 1,511 | (728 | ) | 441 | — | 1,224 | Liabilities and equity | |||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Long-term portion of debt and capital lease obligations | 3,886 | — | 51 | — | 3,937 | |||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 11 | — | 13 | ||||||||||||||||||
Deferred compensation | 14 | — | — | — | 14 | |||||||||||||||||||
Accounts payable-trade | 266 | — | 159 | — | 425 | |||||||||||||||||||
Deferred income taxes | 319 | 901 | 3 | — | 1,223 | |||||||||||||||||||
Accrued liabilities | 463 | 96 | 470 | — | 1,029 | |||||||||||||||||||
Other long-term liabilities | 109 | — | 48 | — | 157 | |||||||||||||||||||
Intercompany accounts payable (receivable) | 1,019 | (879 | ) | (140 | ) | — | — | |||||||||||||||||
Total liabilities | 5,839 | 173 | 543 | — | 6,555 | |||||||||||||||||||
Total current liabilities | 1,750 | (783 | ) | 500 | — | 1,467 | ||||||||||||||||||
Equity: | ||||||||||||||||||||||||
Long-term portion of debt and capital lease obligations | 3,745 | — | 55 | — | 3,800 | |||||||||||||||||||
QVC, Inc. stockholder's equity | 5,996 | 4,146 | 2,348 | (6,494 | ) | 5,996 | ||||||||||||||||||
Deferred compensation | 13 | — | 1 | — | 14 | |||||||||||||||||||
Noncontrolling interest | — | — | 116 | — | 116 | |||||||||||||||||||
Deferred income taxes | 399 | 923 | 4 | — | 1,326 | |||||||||||||||||||
Total equity | 5,996 | 4,146 | 2,464 | (6,494 | ) | 6,112 | ||||||||||||||||||
Other long-term liabilities | 90 | — | 18 | — | 108 | |||||||||||||||||||
Total liabilities and equity | $ | 11,835 | 4,319 | 3,007 | (6,494 | ) | 12,667 | |||||||||||||||||
Total liabilities | 5,997 | 140 | 578 | — | 6,715 | |||||||||||||||||||
Condensed consolidating balance sheets | Equity: | |||||||||||||||||||||||
QVC, Inc. shareholder's equity | 6,222 | 4,248 | 2,274 | (6,522 | ) | 6,222 | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | Noncontrolling interest | — | — | 119 | — | 119 | |||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | Total equity | 6,222 | 4,248 | 2,393 | (6,522 | ) | 6,341 | ||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets: | Total liabilities and equity | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | ||||||||||||||||
Cash and cash equivalents | $ | 78 | 133 | 246 | — | 457 | Consolidating balance sheets - Adjusted | |||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Accounts receivable, net | 816 | — | 295 | — | 1,111 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Inventories | 684 | — | 247 | — | 931 | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||
Assets | ||||||||||||||||||||||||
Deferred income taxes | 146 | — | 16 | — | 162 | Current assets: | ||||||||||||||||||
Prepaid expenses | 20 | — | 27 | — | 47 | Cash and cash equivalents | $ | 75 | 165 | 300 | — | 540 | ||||||||||||
Total current assets | 1,755 | 133 | 834 | — | 2,722 | Restricted cash | 13 | — | 2 | — | 15 | |||||||||||||
Property and equipment, net | 265 | 67 | 774 | — | 1,106 | Accounts receivable, net | 747 | — | 308 | — | 1,055 | |||||||||||||
Cable and satellite television distribution rights, net | — | 510 | 114 | — | 624 | Inventories | 691 | — | 218 | — | 909 | |||||||||||||
Goodwill | 4,169 | — | 1,028 | — | 5,197 | Deferred income taxes | 131 | — | 20 | — | 151 | |||||||||||||
Other intangible assets, net | 1,128 | 2,050 | 158 | — | 3,336 | Prepaid expenses | 19 | — | 34 | — | 53 | |||||||||||||
Other noncurrent assets | 8 | — | 63 | — | 71 | Total current assets | 1,676 | 165 | 882 | — | 2,723 | |||||||||||||
Investments in subsidiaries | 4,894 | 1,628 | — | (6,522 | ) | — | Property, plant and equipment, net | 247 | 67 | 817 | — | 1,131 | ||||||||||||
Total assets | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | Cable and satellite television distribution rights, net | — | 618 | 146 | — | 764 | |||||||||||
Liabilities and equity | Goodwill | 4,169 | — | 1,065 | — | 5,234 | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Other intangible assets, net | 1,280 | 2,049 | 180 | — | 3,509 | |||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 11 | — | 13 | ||||||||||||||||||
Other noncurrent assets | 14 | — | 63 | — | 77 | |||||||||||||||||||
Accounts payable-trade | 336 | — | 158 | — | 494 | |||||||||||||||||||
Investments in subsidiaries | 4,844 | 1,838 | — | (6,682 | ) | — | ||||||||||||||||||
Accrued liabilities | 393 | 96 | 471 | — | 960 | |||||||||||||||||||
Total assets | $ | 12,230 | 4,737 | 3,153 | (6,682 | ) | 13,438 | |||||||||||||||||
Intercompany accounts payable (receivable) | 1,019 | (879 | ) | (140 | ) | — | — | |||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Total current liabilities | 1,750 | (783 | ) | 500 | — | 1,467 | Current liabilities: | |||||||||||||||||
Long-term portion of debt and capital lease obligations | 3,745 | — | 55 | — | 3,800 | Current portion of debt and capital lease obligations | $ | 2 | — | 10 | — | 12 | ||||||||||||
Deferred compensation | 13 | — | 1 | — | 14 | Accounts payable-trade | 324 | — | 242 | — | 566 | |||||||||||||
Deferred income taxes | 399 | 923 | 4 | — | 1,326 | Accrued liabilities | 402 | 106 | 447 | — | 955 | |||||||||||||
Other long-term liabilities | 90 | — | 18 | — | 108 | Intercompany accounts payable (receivable) | 829 | (816 | ) | (13 | ) | — | — | |||||||||||
Total liabilities | 5,997 | 140 | 578 | — | 6,715 | Total current liabilities | 1,557 | (710 | ) | 686 | — | 1,533 | ||||||||||||
Equity: | Long-term portion of debt and capital lease obligations | 3,404 | — | 61 | — | 3,465 | ||||||||||||||||||
QVC, Inc. stockholder's equity | 6,222 | 4,248 | 2,274 | (6,522 | ) | 6,222 | Deferred compensation | 11 | — | 1 | — | 12 | ||||||||||||
Noncontrolling interest | — | — | 119 | — | 119 | Deferred income taxes | 431 | 964 | 15 | — | 1,410 | |||||||||||||
Total equity | 6,222 | 4,248 | 2,393 | (6,522 | ) | 6,341 | Other long-term liabilities | 137 | 17 | 30 | — | 184 | ||||||||||||
Total liabilities and equity | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | Total liabilities | 5,540 | 271 | 793 | — | 6,604 | |||||||||||
Equity: | ||||||||||||||||||||||||
Condensed consolidating statements of operations | ||||||||||||||||||||||||
QVC, Inc. shareholder's equity | 6,690 | 4,466 | 2,216 | (6,682 | ) | 6,690 | ||||||||||||||||||
Three months ended June 30, 2014 | Noncontrolling interest | — | — | 144 | — | 144 | ||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Total equity | 6,690 | 4,466 | 2,360 | (6,682 | ) | 6,834 | ||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net revenue | $ | 1,368 | 187 | 692 | (233 | ) | 2,014 | Total liabilities and equity | $ | 12,230 | 4,737 | 3,153 | (6,682 | ) | 13,438 | |||||||||
Cost of goods sold | 850 | 23 | 432 | (55 | ) | 1,250 | Consolidating statements of operations | |||||||||||||||||
Gross profit | 518 | 164 | 260 | (178 | ) | 764 | ||||||||||||||||||
Year ended December, 2013 | ||||||||||||||||||||||||
Operating expenses: | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Operating | 42 | 49 | 89 | — | 180 | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||
Net revenue | $ | 5,914 | 841 | 2,914 | (1,046 | ) | 8,623 | |||||||||||||||||
Selling, general and administrative, including stock-based compensation | 243 | 1 | 89 | (178 | ) | 155 | ||||||||||||||||||
Cost of goods sold | 3,804 | 107 | 1,831 | (277 | ) | 5,465 | ||||||||||||||||||
Depreciation | 10 | 1 | 22 | — | 33 | |||||||||||||||||||
Gross profit | 2,110 | 734 | 1,083 | (769 | ) | 3,158 | ||||||||||||||||||
Amortization | 58 | 38 | 16 | — | 112 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Intercompany management expense (income) | 20 | (5 | ) | (15 | ) | — | — | |||||||||||||||||
Operating | 168 | 214 | 358 | — | 740 | |||||||||||||||||||
373 | 84 | 201 | (178 | ) | 480 | |||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 1,028 | — | 356 | (769 | ) | 615 | ||||||||||||||||||
Operating income | 145 | 80 | 59 | — | 284 | |||||||||||||||||||
Depreciation | 38 | 6 | 83 | — | 127 | |||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
Amortization of intangible assets | 204 | 146 | 81 | — | 431 | |||||||||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Intercompany management expense (income) | 50 | 1 | (51 | ) | — | — | ||||||||||||||||||
Interest expense, net | (60 | ) | — | — | — | (60 | ) | |||||||||||||||||
1,488 | 367 | 827 | (769 | ) | 1,913 | |||||||||||||||||||
Foreign currency (loss) gain | (1 | ) | — | 2 | — | 1 | ||||||||||||||||||
Operating income | 622 | 367 | 256 | — | 1,245 | |||||||||||||||||||
Intercompany interest and other (expense) income | (5 | ) | 13 | 12 | (20 | ) | — | |||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
(66 | ) | 13 | 12 | (20 | ) | (61 | ) | |||||||||||||||||
Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||
Income before income taxes | 79 | 93 | 71 | (20 | ) | 223 | ||||||||||||||||||
Gains on financial instruments | 12 | — | 3 | — | 15 | |||||||||||||||||||
Income tax expense | (27 | ) | (28 | ) | (28 | ) | — | (83 | ) | |||||||||||||||
Interest expense, net | (214 | ) | — | — | — | (214 | ) | |||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 88 | 29 | — | (117 | ) | — | ||||||||||||||||||
Foreign currency (loss) gain | (13 | ) | — | 14 | — | 1 | ||||||||||||||||||
Net income | 140 | 94 | 43 | (137 | ) | 140 | ||||||||||||||||||
Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | |||||||||||||||||
Less net income attributable to the noncontrolling interest | (10 | ) | — | (10 | ) | 10 | (10 | ) | ||||||||||||||||
Intercompany interest (expense) income | (16 | ) | 51 | (35 | ) | — | — | |||||||||||||||||
Net income attributable to QVC, Inc. stockholder | $ | 130 | 94 | 33 | (127 | ) | 130 | |||||||||||||||||
(288 | ) | 51 | (22 | ) | — | (259 | ) | |||||||||||||||||
Condensed consolidating statements of operations - Adjusted | Income before income taxes | 334 | 418 | 234 | — | 986 | ||||||||||||||||||
Income tax expense | (119 | ) | (132 | ) | (102 | ) | — | (353 | ) | |||||||||||||||
Three months ended June 30, 2013 | ||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | Equity in earnings of subsidiaries, net of tax | 418 | 67 | — | (485 | ) | — | ||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | Net income | 633 | 353 | 132 | (485 | ) | 633 | ||||||||||||||
Net revenue | $ | 1,326 | 182 | 681 | (228 | ) | 1,961 | |||||||||||||||||
Less net income attributable to the noncontrolling interest | (45 | ) | — | (45 | ) | 45 | (45 | ) | ||||||||||||||||
Cost of goods sold | 836 | 23 | 427 | (59 | ) | 1,227 | ||||||||||||||||||
Net income attributable to QVC, Inc. shareholder | $ | 588 | 353 | 87 | (440 | ) | 588 | |||||||||||||||||
Gross profit | 490 | 159 | 254 | (169 | ) | 734 | ||||||||||||||||||
Consolidating statements of operations - Adjusted | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Operating | 38 | 48 | 85 | — | 171 | Year ended December 31, 2012 | ||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 227 | — | 80 | (169 | ) | 138 | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Depreciation | 9 | 2 | 22 | — | 33 | Net revenue | $ | 5,653 | 819 | 3,078 | (1,034 | ) | 8,516 | |||||||||||
Amortization | 51 | 36 | 20 | — | 107 | Cost of goods sold | 3,644 | 116 | 1,941 | (282 | ) | 5,419 | ||||||||||||
Intercompany management expense (income) | 15 | (4 | ) | (11 | ) | — | — | Gross profit | 2,009 | 703 | 1,137 | (752 | ) | 3,097 | ||||||||||
340 | 82 | 196 | (169 | ) | 449 | Operating expenses: | ||||||||||||||||||
Operating income | 150 | 77 | 58 | — | 285 | Operating | 140 | 206 | 369 | — | 715 | |||||||||||||
Other (expense) income: | Selling, general and administrative, including stock-based compensation | 1,002 | 1 | 337 | (752 | ) | 588 | |||||||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | Depreciation | 35 | 4 | 87 | — | 126 | |||||||||||
Gains on financial instruments | — | — | 3 | — | 3 | Amortization of intangible assets | 204 | 130 | 66 | — | 400 | |||||||||||||
Interest (expense) income, net | (50 | ) | (1 | ) | 1 | — | (50 | ) | Intercompany management expense (income) | 60 | (14 | ) | (46 | ) | — | — | ||||||||
Foreign currency (loss) gain | (1 | ) | — | 1 | — | — | 1,441 | 327 | 813 | (752 | ) | 1,829 | ||||||||||||
Loss on extinguishment of debt | (16 | ) | — | — | — | (16 | ) | Operating income | 568 | 376 | 324 | — | 1,268 | |||||||||||
Intercompany interest and other (expense) income | (4 | ) | 12 | (8 | ) | — | — | Other (expense) income: | ||||||||||||||||
(71 | ) | 11 | (5 | ) | — | (65 | ) | Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | |||||||||
Income before income taxes | 79 | 88 | 53 | — | 220 | Gains on financial instruments | 48 | — | — | — | 48 | |||||||||||||
Income tax expense | (21 | ) | (32 | ) | (28 | ) | — | (81 | ) | Interest expense, net | (233 | ) | — | — | — | (233 | ) | |||||||
Equity in earnings of subsidiaries, net of tax | 81 | 11 | — | (92 | ) | — | Foreign currency (loss) gain | (10 | ) | 4 | 8 | — | 2 | |||||||||||
Net income | 139 | 67 | 25 | (92 | ) | 139 | Intercompany interest (expense) income | (13 | ) | 51 | (38 | ) | — | — | ||||||||||
Less net income attributable to the noncontrolling interest | (13 | ) | — | (13 | ) | 13 | (13 | ) | (208 | ) | 55 | (34 | ) | — | (187 | ) | ||||||||
Net income attributable to QVC, Inc. stockholder | $ | 126 | 67 | 12 | (79 | ) | 126 | Income before income taxes | 360 | 431 | 290 | — | 1,081 | |||||||||||
Income tax expense | (116 | ) | (141 | ) | (137 | ) | — | (394 | ) | |||||||||||||||
Condensed consolidating statements of operations | ||||||||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 443 | 93 | — | (536 | ) | — | ||||||||||||||||||
Six months ended June 30, 2014 | Net income | 687 | 383 | 153 | (536 | ) | 687 | |||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Less net income attributable to the noncontrolling interest | (63 | ) | — | (63 | ) | 63 | (63 | ) | ||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net revenue | $ | 2,692 | 364 | 1,399 | (455 | ) | 4,000 | Net income attributable to QVC, Inc. shareholder | $ | 624 | 383 | 90 | (473 | ) | 624 | |||||||||
Cost of goods sold | 1,692 | 48 | 878 | (112 | ) | 2,506 | Consolidating statements of operations - Adjusted | |||||||||||||||||
Gross profit | 1,000 | 316 | 521 | (343 | ) | 1,494 | ||||||||||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||||||
Operating expenses: | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Operating | 82 | 95 | 181 | — | 358 | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||
Net revenue | $ | 5,485 | 790 | 2,988 | (995 | ) | 8,268 | |||||||||||||||||
Selling, general and administrative, including stock-based compensation | 466 | (1 | ) | 181 | (343 | ) | 303 | |||||||||||||||||
Cost of goods sold | 3,507 | 120 | 1,906 | (255 | ) | 5,278 | ||||||||||||||||||
Depreciation | 19 | 3 | 44 | — | 66 | |||||||||||||||||||
Gross profit | 1,978 | 670 | 1,082 | (740 | ) | 2,990 | ||||||||||||||||||
Amortization | 110 | 77 | 36 | — | 223 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Intercompany management expense (income) | 40 | (8 | ) | (32 | ) | — | — | |||||||||||||||||
Operating | 166 | 201 | 377 | — | 744 | |||||||||||||||||||
717 | 166 | 410 | (343 | ) | 950 | |||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 947 | — | 328 | (740 | ) | 535 | ||||||||||||||||||
Operating income | 283 | 150 | 111 | — | 544 | |||||||||||||||||||
Depreciation | 36 | 4 | 95 | — | 135 | |||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
Amortization of intangible assets | 242 | 133 | 64 | — | 439 | |||||||||||||||||||
Equity in losses of investee | — | — | (3 | ) | — | (3 | ) | |||||||||||||||||
Intercompany management expense (income) | 89 | (27 | ) | (62 | ) | — | — | |||||||||||||||||
Interest expense, net | (113 | ) | — | (9 | ) | — | (122 | ) | ||||||||||||||||
1,480 | 311 | 802 | (740 | ) | 1,853 | |||||||||||||||||||
Foreign currency (loss) gain | (3 | ) | — | 3 | — | — | ||||||||||||||||||
Operating income | 498 | 359 | 280 | — | 1,137 | |||||||||||||||||||
Intercompany interest and other (expense) income | (10 | ) | 26 | 4 | (20 | ) | — | |||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
(126 | ) | 26 | (5 | ) | (20 | ) | (125 | ) | ||||||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Income before income taxes | 157 | 176 | 106 | (20 | ) | 419 | ||||||||||||||||||
Gains on financial instruments | 50 | — | — | — | 50 | |||||||||||||||||||
Income tax expense | (7 | ) | (52 | ) | (98 | ) | — | (157 | ) | |||||||||||||||
Interest (expense) income | (230 | ) | — | 1 | — | (229 | ) | |||||||||||||||||
Equity in earnings (losses) of subsidiaries, net of tax | 112 | (19 | ) | — | (93 | ) | — | |||||||||||||||||
Foreign currency (loss) gain | (3 | ) | (2 | ) | 3 | — | (2 | ) | ||||||||||||||||
Net income | 262 | 105 | 8 | (113 | ) | 262 | ||||||||||||||||||
Intercompany interest (expense) income | (9 | ) | 53 | (44 | ) | — | — | |||||||||||||||||
Less net income attributable to the noncontrolling interest | (19 | ) | — | (19 | ) | 19 | (19 | ) | ||||||||||||||||
(192 | ) | 51 | (42 | ) | — | (183 | ) | |||||||||||||||||
Net income (loss) attributable to QVC, Inc. stockholder | $ | 243 | 105 | (11 | ) | (94 | ) | 243 | ||||||||||||||||
Income before income taxes | 306 | 410 | 238 | — | 954 | |||||||||||||||||||
The increase in tax expense of the combined non-guarantor subsidiaries compared to the same period in the prior year was primarily due to an unfavorable tax audit settlement in one of our European subsidiaries. This also resulted in a tax benefit for QVC, Inc. as a result of the corresponding foreign tax credit in the U.S. | ||||||||||||||||||||||||
Income tax expense | (110 | ) | (124 | ) | (108 | ) | — | (342 | ) | |||||||||||||||
Condensed consolidating statements of operations - Adjusted | ||||||||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 416 | 70 | — | (486 | ) | — | ||||||||||||||||||
Six months ended June 30, 2013 | Net income | 612 | 356 | 130 | (486 | ) | 612 | |||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Less net income attributable to the noncontrolling interest | (52 | ) | — | (52 | ) | 52 | (52 | ) | ||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net revenue | $ | 2,640 | 365 | 1,389 | (459 | ) | 3,935 | Net income attributable to QVC, Inc. shareholder | $ | 560 | 356 | 78 | (434 | ) | 560 | |||||||||
Cost of goods sold | 1,679 | 49 | 871 | (120 | ) | 2,479 | Consolidating statements of comprehensive income | |||||||||||||||||
Gross profit | 961 | 316 | 518 | (339 | ) | 1,456 | ||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||
Operating expenses: | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Operating | 75 | 93 | 176 | — | 344 | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||
Net income | $ | 633 | 353 | 132 | (485 | ) | 633 | |||||||||||||||||
Selling, general and administrative, including stock-based compensation | 463 | — | 169 | (339 | ) | 293 | ||||||||||||||||||
Foreign currency translation adjustments | (72 | ) | — | (72 | ) | 72 | (72 | ) | ||||||||||||||||
Depreciation | 19 | 3 | 41 | — | 63 | |||||||||||||||||||
Total comprehensive income | 561 | 353 | 60 | (413 | ) | 561 | ||||||||||||||||||
Amortization | 102 | 70 | 39 | — | 211 | |||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (20 | ) | — | (20 | ) | 20 | (20 | ) | ||||||||||||||||
Intercompany management expense (income) | 32 | (7 | ) | (25 | ) | — | — | |||||||||||||||||
Comprehensive income attributable to QVC, Inc. shareholder | $ | 541 | 353 | 40 | (393 | ) | 541 | |||||||||||||||||
691 | 159 | 400 | (339 | ) | 911 | |||||||||||||||||||
Consolidating statements of comprehensive income - Adjusted | ||||||||||||||||||||||||
Operating income | 270 | 157 | 118 | — | 545 | |||||||||||||||||||
Other (expense) income: | Year ended December 31, 2012 | |||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
Equity in losses of investee | — | — | (1 | ) | — | (1 | ) | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Gains on financial instruments | 12 | — | 3 | — | 15 | Net income | $ | 687 | 383 | 153 | (536 | ) | 687 | |||||||||||
Interest expense, net | (112 | ) | (1 | ) | — | — | (113 | ) | Foreign currency translation adjustments | (27 | ) | — | (27 | ) | 27 | (27 | ) | |||||||
Foreign currency (loss) gain | (2 | ) | (1 | ) | 2 | — | (1 | ) | Total comprehensive income | 660 | 383 | 126 | (509 | ) | 660 | |||||||||
Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | Comprehensive income attributable to noncontrolling interest | (44 | ) | — | (44 | ) | 44 | (44 | ) | ||||||||
Intercompany interest and other (expense) income | (7 | ) | 25 | (18 | ) | — | — | Comprehensive income attributable to QVC, Inc. shareholder | $ | 616 | 383 | 82 | (465 | ) | 616 | |||||||||
(166 | ) | 23 | (14 | ) | — | (157 | ) | Consolidating statements of comprehensive income - Adjusted | ||||||||||||||||
Income before income taxes | 104 | 180 | 104 | — | 388 | |||||||||||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||||||
Income tax expense | (32 | ) | (60 | ) | (51 | ) | — | (143 | ) | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 173 | 26 | — | (199 | ) | — | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||
Net income | 612 | 356 | 130 | (486 | ) | 612 | ||||||||||||||||||
Net income | 245 | 146 | 53 | (199 | ) | 245 | ||||||||||||||||||
Foreign currency translation adjustments | (10 | ) | — | (10 | ) | 10 | (10 | ) | ||||||||||||||||
Less net income attributable to the noncontrolling interest | (25 | ) | — | (25 | ) | 25 | (25 | ) | ||||||||||||||||
Total comprehensive income | 602 | 356 | 120 | (476 | ) | 602 | ||||||||||||||||||
Net income attributable to QVC, Inc. stockholder | $ | 220 | 146 | 28 | (174 | ) | 220 | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (57 | ) | — | (57 | ) | 57 | (57 | ) | ||||||||||||||||
Condensed consolidating statements of comprehensive income | Comprehensive income attributable to QVC, Inc. shareholder | $ | 545 | 356 | 63 | (419 | ) | 545 | ||||||||||||||||
Three months ended June 30, 2014 | ||||||||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | Consolidating statements of cash flows | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net income | $ | 140 | 94 | 43 | (137 | ) | 140 | Year ended December 31, 2013 | ||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
Foreign currency translation adjustments | 2 | — | 2 | (2 | ) | 2 | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Total comprehensive income | 142 | 94 | 45 | (139 | ) | 142 | Operating activities: | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (10 | ) | — | (10 | ) | 10 | (10 | ) | Net cash provided by operating activities | $ | 379 | 389 | 205 | — | 973 | |||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 132 | 94 | 35 | (129 | ) | 132 | Investing activities: | ||||||||||||||||
Capital expenditures, net | (106 | ) | (8 | ) | (97 | ) | — | (211 | ) | |||||||||||||||
Condensed consolidating statements of comprehensive income - Adjusted | ||||||||||||||||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (56 | ) | (2 | ) | — | (58 | ) | ||||||||||||||||
Three months ended June 30, 2013 | Decrease (increase) in restricted cash | 2 | — | (1 | ) | — | 1 | |||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Changes in other noncurrent assets | (1 | ) | — | (1 | ) | — | (2 | ) | ||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net income | $ | 139 | 67 | 25 | (92 | ) | 139 | Intercompany investing activities | 368 | 277 | — | (645 | ) | — | ||||||||||
Foreign currency translation adjustments | (16 | ) | — | (16 | ) | 16 | (16 | ) | Net cash provided by (used in) investing activities | 263 | 213 | (101 | ) | (645 | ) | (270 | ) | |||||||
Total comprehensive income | 123 | 67 | 9 | (76 | ) | 123 | Financing activities: | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (7 | ) | — | (7 | ) | 7 | (7 | ) | Principal payments of debt and capital lease obligations | (2,375 | ) | — | (12 | ) | — | (2,387 | ) | |||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 116 | 67 | 2 | (69 | ) | 116 | Principal borrowings of debt from senior secured credit facility | 1,674 | — | — | — | 1,674 | |||||||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | |||||||||||||||||||
Condensed consolidating statements of comprehensive income | ||||||||||||||||||||||||
Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | |||||||||||||||||
Six months ended June 30, 2014 | Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | ||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Other financing activities | 12 | — | — | — | 12 | |||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net income | $ | 262 | 105 | 8 | (113 | ) | 262 | Dividends paid to Liberty | (1,005 | ) | — | — | — | (1,005 | ) | |||||||||
Foreign currency translation adjustments | 18 | — | 18 | (18 | ) | 18 | Dividends paid to noncontrolling interest | — | — | (45 | ) | — | (45 | ) | ||||||||||
Total comprehensive income | 280 | 105 | 26 | (131 | ) | 280 | Net short-term intercompany debt borrowings (repayments) | 190 | (63 | ) | (127 | ) | — | — | ||||||||||
Comprehensive income attributable to noncontrolling interest | (22 | ) | — | (22 | ) | 22 | (22 | ) | Intercompany financing activities | (123 | ) | (571 | ) | 49 | 645 | — | ||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 258 | 105 | 4 | (109 | ) | 258 | Net cash used in financing activities | (639 | ) | (634 | ) | (135 | ) | 645 | (763 | ) | |||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (23 | ) | — | (23 | ) | |||||||||||||||||
Condensed consolidating statements of comprehensive income - Adjusted | ||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 3 | (32 | ) | (54 | ) | — | (83 | ) | ||||||||||||||||
Six months ended June 30, 2013 | Cash and cash equivalents, beginning of period | 75 | 165 | 300 | — | 540 | ||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Cash and cash equivalents, end of period | $ | 78 | 133 | 246 | — | 457 | ||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net income | $ | 245 | 146 | 53 | (199 | ) | 245 | Consolidating statements of cash flows - Adjusted | ||||||||||||||||
Foreign currency translation adjustments | (107 | ) | — | (107 | ) | 107 | (107 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||
Total comprehensive income (loss) | 138 | 146 | (54 | ) | (92 | ) | 138 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (6 | ) | — | (6 | ) | 6 | (6 | ) | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||
Operating activities: | ||||||||||||||||||||||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 132 | 146 | (60 | ) | (86 | ) | 132 | ||||||||||||||||
Net cash provided by operating activities | $ | 462 | 412 | 332 | — | 1,206 | ||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Condensed consolidating statements of cash flows | ||||||||||||||||||||||||
Capital expenditures, net | (76 | ) | (5 | ) | (165 | ) | — | (246 | ) | |||||||||||||||
Six months ended June 30, 2014 | Expenditures for cable and satellite television distribution rights, net | — | (1 | ) | (1 | ) | — | (2 | ) | |||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Cash paid for joint ventures and acquisitions of businesses, net of cash received | — | — | (95 | ) | — | (95 | ) | |||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Operating activities: | Decrease in restricted cash | 2 | — | — | — | 2 | ||||||||||||||||||
Net cash provided by operating activities | $ | 217 | 172 | 160 | — | 549 | Changes in other noncurrent assets | (3 | ) | — | — | — | (3 | ) | ||||||||||
Investing activities: | Intercompany investing activities | 443 | 265 | — | (708 | ) | — | |||||||||||||||||
Capital expenditures, net | (74 | ) | (1 | ) | 38 | (20 | ) | (57 | ) | Net cash provided by (used in) investing activities | 366 | 259 | (261 | ) | (708 | ) | (344 | ) | ||||||
Expenditures for cable and satellite television distribution rights, net | — | (8 | ) | — | — | (8 | ) | Financing activities: | ||||||||||||||||
Intercompany investing activities | 114 | 27 | — | (141 | ) | — | Principal payments of debt and capital lease obligations | (1,237 | ) | — | (9 | ) | — | (1,246 | ) | |||||||||
Net cash provided by (used in) investing activities | 40 | 18 | 38 | (161 | ) | (65 | ) | Principal borrowings of debt from senior secured credit facility | 1,717 | — | — | — | 1,717 | |||||||||||
Financing activities: | Proceeds from issuance of senior secured notes | 500 | — | — | — | 500 | ||||||||||||||||||
Principal payments of debt and capital lease obligations | (1,414 | ) | — | (5 | ) | — | (1,419 | ) | Payment of debt origination fees | (7 | ) | — | — | — | (7 | ) | ||||||||
Principal borrowings of debt from senior secured credit facility | 554 | — | — | — | 554 | Other financing activities | 20 | — | — | — | 20 | |||||||||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | — | — | — | 999 | Dividends paid to Liberty | (1,817 | ) | — | — | — | (1,817 | ) | |||||||||||
Payment of debt origination fees | (12 | ) | — | — | — | (12 | ) | Dividend paid to noncontrolling interest | — | — | (29 | ) | — | (29 | ) | |||||||||
Other financing activities | (4 | ) | — | — | — | (4 | ) | Net short-term intercompany debt borrowings (repayments) | 214 | (59 | ) | (155 | ) | — | — | |||||||||
Dividends paid to Liberty | (480 | ) | — | — | — | (480 | ) | Intercompany financing activities | (146 | ) | (670 | ) | 108 | 708 | — | |||||||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | Net cash used in financing activities | (756 | ) | (729 | ) | (85 | ) | 708 | (862 | ) | |||||||
Net short-term intercompany debt borrowings (repayments) | 65 | 65 | (130 | ) | — | — | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (20 | ) | — | (20 | ) | ||||||||||
Intercompany financing activities | (25 | ) | (226 | ) | 90 | 161 | — | Net increase (decrease) in cash and cash equivalents | 72 | (58 | ) | (34 | ) | — | (20 | ) | ||||||||
Net cash used in financing activities | (317 | ) | (161 | ) | (70 | ) | 161 | (387 | ) | Cash and cash equivalents, beginning of period | 3 | 223 | 334 | — | 560 | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (6 | ) | — | (6 | ) | Cash and cash equivalents, end of period | $ | 75 | 165 | 300 | — | 540 | ||||||||||
Net (decrease) increase in cash and cash equivalents | (60 | ) | 29 | 122 | — | 91 | Consolidating statements of cash flows - Adjusted | |||||||||||||||||
Cash and cash equivalents, beginning of period | 78 | 133 | 246 | — | 457 | |||||||||||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 18 | 162 | 368 | — | 548 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Condensed consolidating statements of cash flows - Adjusted | Operating activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 225 | 380 | 213 | — | 818 | ||||||||||||||||||
Six months ended June 30, 2013 | ||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | Investing activities: | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | Capital expenditures, net | (83 | ) | (8 | ) | (168 | ) | — | (259 | ) | |||||||||||
Operating activities: | ||||||||||||||||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (2 | ) | — | — | (2 | ) | |||||||||||||||||
Net cash provided by operating activities | $ | 275 | 115 | 52 | — | 442 | ||||||||||||||||||
Decrease in restricted cash | 1 | — | — | — | 1 | |||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Changes in other noncurrent assets and liabilities | 5 | — | (1 | ) | — | 4 | ||||||||||||||||||
Capital expenditures, net | (33 | ) | — | (42 | ) | — | (75 | ) | ||||||||||||||||
Intercompany investing activities | 348 | 190 | — | (538 | ) | — | ||||||||||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (25 | ) | (1 | ) | — | (26 | ) | ||||||||||||||||
Net cash provided by (used in) investing activities | 271 | 180 | (169 | ) | (538 | ) | (256 | ) | ||||||||||||||||
Changes in other noncurrent assets | 4 | — | (3 | ) | — | 1 | ||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Intercompany investing activities | 258 | 149 | — | (407 | ) | — | ||||||||||||||||||
Principal payments of debt and capital lease obligations | (825 | ) | — | (12 | ) | — | (837 | ) | ||||||||||||||||
Net cash provided by (used in) investing activities | 229 | 124 | (46 | ) | (407 | ) | (100 | ) | ||||||||||||||||
Principal borrowings of debt from senior secured credit facility | 465 | — | — | — | 465 | |||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Dividends paid to Liberty | (205 | ) | — | — | — | (205 | ) | |||||||||||||||||
Principal payments of debt and capital lease obligations | (1,690 | ) | — | (5 | ) | — | (1,695 | ) | ||||||||||||||||
Dividends paid to noncontrolling interest | — | — | (50 | ) | — | (50 | ) | |||||||||||||||||
Principal borrowings of debt from senior secured credit facility | 1,053 | — | — | — | 1,053 | |||||||||||||||||||
Net short-term intercompany debt borrowings (repayments) | 104 | 2 | (106 | ) | — | — | ||||||||||||||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | |||||||||||||||||||
Intercompany financing activities | (76 | ) | (499 | ) | 37 | 538 | — | |||||||||||||||||
Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | |||||||||||||||||
Net cash used in financing activities | (537 | ) | (497 | ) | (131 | ) | 538 | (627 | ) | |||||||||||||||
Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | |||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 4 | — | 4 | |||||||||||||||||||
Other financing activities | 7 | — | — | — | 7 | |||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (41 | ) | 63 | (83 | ) | — | (61 | ) | ||||||||||||||||
Dividends paid to Liberty | (765 | ) | — | — | — | (765 | ) | |||||||||||||||||
Cash and cash equivalents, beginning of period | 44 | 160 | 417 | — | 621 | |||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 3 | 223 | 334 | — | 560 | ||||||||||||||||||
Net short-term intercompany debt (repayments) borrowings | (21 | ) | 86 | (65 | ) | — | — | |||||||||||||||||
Intercompany financing activities | (143 | ) | (326 | ) | 62 | 407 | — | |||||||||||||||||
Net cash used in financing activities | (571 | ) | (240 | ) | (33 | ) | 407 | (437 | ) | |||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (29 | ) | — | (29 | ) | |||||||||||||||||
Net decrease in cash and cash equivalents | (67 | ) | (1 | ) | (56 | ) | — | (124 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | 75 | 165 | 300 | — | 540 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 8 | 164 | 244 | — | 416 | ||||||||||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Basis of Presentation [Abstract] | ' | ' |
Consolidation policy | ' | ' |
The condensed consolidated financial statements include the accounts of the Company and its majority‑owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. | The consolidated financial statements include the accounts of the Company and its majority‑owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. | |
(q) Noncontrolling interest | ||
The Company reports the noncontrolling interest of QVC-Japan within equity in the consolidated balance sheets and the amount of consolidated net income attributable to the noncontrolling interest is presented in the consolidated statements of operations. | ||
New accounting pronouncements policy | ' | ' |
On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | (u) Recent accounting pronouncements | |
In February 2013, the FASB issued Accounting Standards Update ("ASU") No. 2013-02, which amends Accounting Standards Codification ("ASC") Topic 220, Comprehensive Income and requires that companies present information about reclassification adjustments from accumulated other comprehensive income in their interim and annual financial statements. The standard requires that companies present either in a single note, or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies will instead cross reference to the related footnote for additional information. QVC adopted this guidance as of January 1, 2013, and adoption did not have an impact on QVC's consolidated financial position, results of operations or cash flows. | ||
Reclassification policy | ' | ' |
Certain prior period amounts have been reclassified to conform with current period presentation. | (v) Reclassifications | |
Certain prior period amounts have been reclassified to conform with current period presentation. |
Cable_and_Satellite_Television1
Cable and Satellite Television Distribution Rights, Net (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Cable and Satellite Television Distribution Rights [Abstract] | ' | ' | ||||||||||
Schedule of Cable and Satellite Television Distribution Rights | ' | ' | ||||||||||
Cable and satellite television distribution rights consisted of the following: | Cable and satellite television distribution rights consisted of the following: | |||||||||||
June 30, | December 31, | December 31, | ||||||||||
(in millions) | 2013 | 2012 | ||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Cable and satellite television distribution rights | $ | 2,324 | 2,304 | |||||||||
Cable and satellite television distribution rights | $ | 2,334 | 2,324 | |||||||||
Less accumulated amortization | (1,700 | ) | (1,540 | ) | ||||||||
Less accumulated amortization | (1,794 | ) | (1,700 | ) | Cable and satellite television distribution rights, net | $ | 624 | 764 | ||||
Cable and satellite television distribution rights, net | $ | 540 | 624 | |||||||||
Schedule of Expected Amortization Expense | ' | ' | ||||||||||
As of June 30, 2014, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | As of December 31, 2013, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | |||||||||||
Remainder of 2014 | $ | 87 | 2014 | $ | 176 | |||||||
2015 | 168 | 2015 | 167 | |||||||||
2016 | 162 | 2016 | 161 | |||||||||
2017 | 111 | 2017 | 110 | |||||||||
2018 | 6 | 2018 | 5 | |||||||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||
Schedule of Goodwill | ' | ' | ||||||||||||||||||||||||||
The changes in the carrying amount of goodwill were as follows: | The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||
(in millions) | QVC-U.S. | QVC-Japan | QVC-Germany | QVC-U.K. | QVC-Italy | Total | (in millions) | QVC-U.S. | QVC-Japan | QVC-Germany | QVC-U.K. | QVC-Italy | Total | |||||||||||||||
Balance as of December 31, 2013 | $ | 4,190 | 288 | 348 | 216 | 155 | 5,197 | Balance as of December 31, 2011 | $ | 4,169 | 393 | 328 | 203 | 146 | 5,239 | |||||||||||||
Exchange rate fluctuations | — | 11 | (3 | ) | 6 | (1 | ) | 13 | Acquisitions | 21 | — | — | — | — | 21 | |||||||||||||
Balance as of June 30, 2014 | $ | 4,190 | 299 | 345 | 222 | 154 | 5,210 | Exchange rate fluctuations | — | (44 | ) | 6 | 9 | 3 | (26 | ) | ||||||||||||
Balance as of December 31, 2012 | 4,190 | 349 | 334 | 212 | 149 | 5,234 | ||||||||||||||||||||||
Exchange rate fluctuations | — | (61 | ) | 14 | 4 | 6 | (37 | ) | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 4,190 | 288 | 348 | 216 | 155 | 5,197 | |||||||||||||||||||||
Other_Intangible_Assets_Net_Ta
Other Intangible Assets, Net (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Other Intangible Assets [Abstract] | ' | ' | ||||||||||||||||||||||||
Schedule of Acquired Intangible Assets by Class | ' | ' | ||||||||||||||||||||||||
Other intangible assets consisted of the following: | Other intangible assets consisted of the following: | |||||||||||||||||||||||||
June 30, | December 31, | December 31, | Weighted average remaining life (years) | |||||||||||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | Gross | Accumulated | Other intangible assets, net | Gross | Accumulated | Other intangible assets, net | (in millions) | Gross | Accumulated | Gross | Accumulated | |||||||||||||||
cost | amortization | cost | amortization | cost | amortization | cost | amortization | |||||||||||||||||||
Purchased and internally developed software | $ | 630 | (423 | ) | 207 | 615 | (393 | ) | 222 | Purchased and internally developed software | $ | 615 | (393 | ) | 575 | (352 | ) | 1.7 | ||||||||
Affiliate and customer relationships | 2,451 | (1,890 | ) | 561 | 2,450 | (1,802 | ) | 648 | Affiliate and customer relationships | 2,450 | (1,802 | ) | 2,445 | (1,624 | ) | 3.8 | ||||||||||
Debt origination fees | 64 | (17 | ) | 47 | 51 | (13 | ) | 38 | Debt origination fees | 51 | (13 | ) | 54 | (18 | ) | 8.8 | ||||||||||
Trademarks (indefinite life) | 2,428 | — | 2,428 | 2,428 | — | 2,428 | Trademarks (indefinite life) | 2,428 | — | 2,429 | — | — | ||||||||||||||
$ | 5,573 | (2,330 | ) | 3,243 | 5,544 | (2,208 | ) | 3,336 | $ | 5,544 | (2,208 | ) | 5,503 | (1,994 | ) | 3.5 | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ' | ||||||||||||||||||||||||
As of June 30, 2014, the related amortization expense and interest expense for each of the next five years ended December 31 was as follows (in millions): | As of December 31, 2013, the related amortization expense and interest expense for each of the next five years ended December 31 was as follows (in millions): | |||||||||||||||||||||||||
Remainder of 2014 | $ | 146 | 2014 | $ | 280 | |||||||||||||||||||||
2015 | 270 | 2015 | 259 | |||||||||||||||||||||||
2016 | 235 | 2016 | 223 | |||||||||||||||||||||||
2017 | 135 | 2017 | 122 | |||||||||||||||||||||||
2018 | 9 | 2018 | 9 | |||||||||||||||||||||||
The decrease in future amortization expense in 2018 is primarily due to the end of the useful lives of the affiliate and customer relationships in place at the time of the Liberty acquisition of QVC in 2003. |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||
Accrued Liabilities [Abstract] | ' | ' | |||||||||
Schedule of Accrued Liabilities | ' | ' | |||||||||
Accrued liabilities consisted of the following: | Accrued liabilities consisted of the following: | ||||||||||
June 30, | December 31, | December 31, | |||||||||
(in millions) | 2013 | 2012 | |||||||||
(in millions) | 2014 | 2013 | |||||||||
Accounts payable non-trade | 323 | 264 | |||||||||
Accounts payable non-trade | 188 | 323 | |||||||||
Income taxes | 126 | 154 | |||||||||
Income taxes | 98 | 126 | |||||||||
Allowance for sales returns | 108 | 92 | |||||||||
Accrued compensation and benefits | 96 | 98 | |||||||||
Accrued compensation and benefits | 98 | 100 | |||||||||
Allowance for sales returns | 80 | 108 | |||||||||
Sales and other taxes | 79 | 62 | |||||||||
Accrued interest | 78 | 58 | |||||||||
Deferred revenue | 73 | 85 | |||||||||
Deferred revenue | 73 | 73 | |||||||||
Liability for consigned goods sold | 69 | 56 | |||||||||
Sales and other taxes | 53 | 79 | |||||||||
Accrued interest | 58 | 50 | |||||||||
Other | 77 | 95 | |||||||||
Other | 95 | 92 | |||||||||
$ | 743 | 960 | |||||||||
1,029 | 955 | ||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ' | ||||||||||
Schedule of Debt | ' | ' | ||||||||||
Long-term debt consisted of the following: | Long-term debt consisted of the following: | |||||||||||
June 30, | December 31, | December 31, | ||||||||||
(in millions) | 2013 | 2012 | ||||||||||
(in millions) | 2014 | 2013 | ||||||||||
7.125% Senior Secured Notes due 2017 | $ | — | 500 | |||||||||
3.125% Senior Secured Notes due 2019, net of original issue discount | $ | 399 | — | |||||||||
7.5% Senior Secured Notes due 2019, net of original issue discount | 761 | 988 | ||||||||||
7.5% Senior Secured Notes due 2019, net of original issue discount | 761 | 761 | ||||||||||
7.375% Senior Secured Notes due 2020 | 500 | 500 | ||||||||||
7.375% Senior Secured Notes due 2020 | 500 | 500 | ||||||||||
5.125% Senior Secured Notes due 2022 | 500 | 500 | ||||||||||
5.125% Senior Secured Notes due 2022 | 500 | 500 | ||||||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | 750 | — | ||||||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | 750 | 750 | ||||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | — | ||||||||||
4.85% Senior Secured Notes due 2024, net of original issue discount | 600 | — | ||||||||||
Senior secured credit facility | 922 | 903 | ||||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | 300 | ||||||||||
Capital lease obligations | 80 | 86 | ||||||||||
Senior secured credit facility | 65 | 922 | ||||||||||
Total debt | 3,813 | 3,477 | ||||||||||
Capital lease obligations | 73 | 80 | ||||||||||
Less current portion | (13 | ) | (12 | ) | ||||||||
Total debt | 3,948 | 3,813 | Long-term portion of debt and capital lease obligations | $ | 3,800 | 3,465 | ||||||
Less current portion | (11 | ) | (13 | ) | ||||||||
Long-term portion of debt and capital lease obligations | $ | 3,937 | 3,800 | |||||||||
Leases_and_Transponder_Service1
Leases and Transponder Service Agreements (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Leases and Transponder Service Agreements [Abstract] | ' | ' | ||||||||||
Future Minimum Lease Payments | ' | ' | ||||||||||
Future minimum payments under noncancelable operating leases and capital transponder leases with initial terms of one year or more at June 30, 2014 consisted of the following: | Future minimum payments under noncancelable operating leases and capital transponder leases with initial terms of one year or more at December 31, 2013 consisted of the following: | |||||||||||
(in millions) | Capital transponders | Operating leases | (in millions) | Capital transponders | Operating leases | |||||||
Remainder of 2014 | $ | 7 | 10 | 2014 | $ | 15 | 16 | |||||
2015 | 11 | 15 | 2015 | 11 | 14 | |||||||
2016 | 11 | 13 | 2016 | 11 | 12 | |||||||
2017 | 11 | 10 | 2017 | 11 | 10 | |||||||
2018 | 12 | 11 | 2018 | 12 | 10 | |||||||
Thereafter | 28 | 101 | Thereafter | 28 | 96 | |||||||
Total | $ | 80 | 160 | Total | $ | 88 | 158 | |||||
Assets_and_Liabilities_Measure1
Assets and Liabilities Measured at Fair Value (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | ||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||||||||||||||||||
The Company's assets and liabilities measured or disclosed at fair value were as follows: | The Company's assets and liabilities measured or disclosed at fair value were as follows: | |||||||||||||||||||
Fair value measurements | Fair value measurements | |||||||||||||||||||
at June 30, 2014 using | at December 31, 2013 using | |||||||||||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | (in millions) | Total | Quoted prices | Significant | Significant | |||||||||||
in active | other | unobservable | in active | other | unobservable | |||||||||||||||
markets for | observable | inputs | markets for | observable | inputs | |||||||||||||||
identical | inputs | (Level 3) | identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | assets | (Level 2) | |||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||||
Cash equivalents | $ | 463 | 463 | — | — | Cash equivalents | $ | 342 | 342 | — | — | |||||||||
Long-term liabilities: | Long-term liabilities: | |||||||||||||||||||
Debt (note 6) | 4,071 | — | 4,071 | — | Debt (note 8) | 3,783 | — | 3,783 | — | |||||||||||
Fair value measurements | Fair value measurements | |||||||||||||||||||
at December 31, 2013 using | at December 31, 2012 using | |||||||||||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | (in millions) | Total | Quoted prices | Significant | Significant | |||||||||||
in active | other | unobservable | in active | other | unobservable | |||||||||||||||
markets for | observable | inputs | markets for | observable | inputs | |||||||||||||||
identical | inputs | (Level 3) | identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | assets | (Level 2) | |||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||||
Cash equivalents | $ | 342 | 342 | — | — | Cash equivalents | $ | 424 | 424 | — | — | |||||||||
Long-term liabilities: | Interest rate swap arrangements (note 8) | 1 | — | 1 | — | |||||||||||||||
Debt (note 6) | 3,783 | — | 3,783 | — | Current liabilities: | |||||||||||||||
Interest rate swap arrangements (note 8) | 13 | — | 13 | — | ||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||
Debt (note 8) | 3,626 | — | 3,626 | — | ||||||||||||||||
Information_about_QVCs_Operati1
Information about QVC's Operating Segments (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ' | |||||||||||||||||||||||||||||||
Schedule of Revenue and Adjusted OIBDA by Segment | ' | ' | |||||||||||||||||||||||||||||||
Performance measures | Performance measures | ||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | Net | Adjusted | (in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | ||||||||||||||||||
revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | ||||||||||||||||||||
QVC-U.S. | $ | 1,352 | 325 | 1,312 | 320 | 2,657 | 626 | 2,609 | 611 | QVC-U.S. | $ | 5,844 | 1,352 | 5,585 | 1,292 | 5,412 | 1,225 | ||||||||||||||||
QVC-Japan | 223 | 43 | 260 | 57 | 457 | 90 | 516 | 111 | QVC-Japan | 1,024 | 212 | 1,247 | 279 | 1,127 | 241 | ||||||||||||||||||
QVC-Germany | 227 | 40 | 207 | 35 | 477 | 79 | 457 | 78 | QVC-Germany | 971 | 173 | 956 | 179 | 1,068 | 199 | ||||||||||||||||||
QVC-U.K. | 178 | 33 | 153 | 26 | 343 | 60 | 293 | 45 | QVC-U.K. | 657 | 118 | 641 | 104 | 626 | 111 | ||||||||||||||||||
QVC-Italy | 34 | (2 | ) | 29 | (4 | ) | 66 | (4 | ) | 60 | (7 | ) | QVC-Italy | 127 | (14 | ) | 87 | (26 | ) | 35 | (43 | ) | |||||||||||
Consolidated QVC | $ | 2,014 | 439 | 1,961 | 434 | 4,000 | 851 | 3,935 | 838 | Consolidated QVC | $ | 8,623 | 1,841 | 8,516 | 1,828 | 8,268 | 1,733 | ||||||||||||||||
Schedule of Depreciation and Amortization by Segment | ' | ' | |||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | (in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | ||||||||||||||||||
QVC-U.S. | $ | 14 | 99 | 14 | 91 | 27 | 192 | 27 | 179 | QVC-U.S. | $ | 55 | 362 | 51 | 338 | 52 | 376 | ||||||||||||||||
QVC-Japan | 4 | 2 | 5 | 2 | 9 | 4 | 8 | 4 | QVC-Japan | 23 | 9 | 16 | 10 | 29 | 12 | ||||||||||||||||||
QVC-Germany | 8 | 8 | 8 | 9 | 16 | 19 | 16 | 18 | QVC-Germany | 30 | 38 | 31 | 33 | 33 | 36 | ||||||||||||||||||
QVC-U.K. | 4 | 3 | 5 | 3 | 8 | 7 | 9 | 6 | QVC-U.K. | 12 | 14 | 21 | 12 | 13 | 11 | ||||||||||||||||||
QVC-Italy | 3 | — | 1 | 2 | 6 | 1 | 3 | 4 | QVC-Italy | 7 | 8 | 7 | 7 | 8 | 4 | ||||||||||||||||||
Consolidated QVC | $ | 33 | 112 | 33 | 107 | 66 | 223 | 63 | 211 | Consolidated QVC | $ | 127 | 431 | 126 | 400 | 135 | 439 | ||||||||||||||||
Schedule of Capital Expenditures and Total Assets by Segment | ' | ' | |||||||||||||||||||||||||||||||
Six months ended June 30, | Year ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(in millions) | Total | Capital | Total | Capital | (in millions) | Total | Capital | Total | Capital | ||||||||||||||||||||||||
assets | expenditures, net | assets | expenditures, net | assets | expenditures | assets | expenditures | ||||||||||||||||||||||||||
QVC-U.S. | $ | 9,933 | 38 | 10,322 | 123 | QVC-U.S. | $ | 10,322 | 123 | 10,541 | 88 | ||||||||||||||||||||||
QVC-Japan | 732 | (1 | ) | 732 | 16 | QVC-Japan | 732 | 16 | 969 | 105 | |||||||||||||||||||||||
QVC-Germany | 1,103 | 4 | 1,109 | 28 | QVC-Germany | 1,109 | 28 | 1,064 | 25 | ||||||||||||||||||||||||
QVC-U.K. | 628 | 6 | 613 | 16 | QVC-U.K. | 613 | 16 | 619 | 22 | ||||||||||||||||||||||||
QVC-Italy | 271 | 10 | 280 | 28 | QVC-Italy | 280 | 28 | 245 | 6 | ||||||||||||||||||||||||
Consolidated QVC | $ | 12,667 | 57 | 13,056 | 211 | Consolidated QVC | $ | 13,056 | 211 | 13,438 | 246 | ||||||||||||||||||||||
Long-Lived Assets by Segment | ' | ' | |||||||||||||||||||||||||||||||
Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | ||||||||||||||||||||||||||||||||
June 30, | December 31, | December 31, | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
QVC-U.S. | $ | 448 | 429 | ||||||||||||||||||||||||||||||
QVC-U.S. | $ | 436 | 448 | ||||||||||||||||||||||||||||||
QVC-Japan | 220 | 280 | |||||||||||||||||||||||||||||||
QVC-Japan | 218 | 220 | |||||||||||||||||||||||||||||||
QVC-Germany | 244 | 247 | |||||||||||||||||||||||||||||||
QVC-Germany | 225 | 244 | |||||||||||||||||||||||||||||||
QVC-U.K. | 129 | 128 | |||||||||||||||||||||||||||||||
QVC-U.K. | 129 | 129 | |||||||||||||||||||||||||||||||
QVC-Italy | 65 | 47 | |||||||||||||||||||||||||||||||
QVC-Italy | 68 | 65 | |||||||||||||||||||||||||||||||
Consolidated QVC | $ | 1,106 | 1,131 | ||||||||||||||||||||||||||||||
Consolidated QVC | $ | 1,076 | 1,106 | ||||||||||||||||||||||||||||||
Reconciliation of Adjusted OIBDA to Income before Income Taxes | ' | ' | |||||||||||||||||||||||||||||||
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | ||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | (in millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||
Adjusted OIBDA | $ | 439 | 434 | 851 | 838 | Adjusted OIBDA | $ | 1,841 | 1,828 | 1,733 | |||||||||||||||||||||||
Stock‑based compensation | (10 | ) | (9 | ) | (18 | ) | (19 | ) | Stock‑based compensation | (38 | ) | (34 | ) | (22 | ) | ||||||||||||||||||
Depreciation and amortization | (145 | ) | (140 | ) | (289 | ) | (274 | ) | Depreciation and amortization | (558 | ) | (526 | ) | (574 | ) | ||||||||||||||||||
Equity in losses of investee | (2 | ) | (2 | ) | (3 | ) | (1 | ) | Equity in losses of investee | (4 | ) | (4 | ) | (2 | ) | ||||||||||||||||||
Gains on financial instruments | — | 3 | — | 15 | Gains on financial instruments | 15 | 48 | 50 | |||||||||||||||||||||||||
Interest expense, net | (60 | ) | (50 | ) | (122 | ) | (113 | ) | Interest expense, net | (214 | ) | (233 | ) | (229 | ) | ||||||||||||||||||
Foreign currency gain (loss) | 1 | — | — | (1 | ) | Foreign currency gain (loss) | 1 | 2 | (2 | ) | |||||||||||||||||||||||
Loss on extinguishment of debt | — | (16 | ) | — | (57 | ) | Loss on extinguishment of debt | (57 | ) | — | — | ||||||||||||||||||||||
Income before income taxes | $ | 223 | 220 | 419 | 388 | Income before income taxes | $ | 986 | 1,081 | 954 | |||||||||||||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ' | ||||||||||||||
The change in the component of accumulated other comprehensive income, net of taxes ("AOCI"), is summarized as follows: | The change in the component of accumulated other comprehensive income, net of taxes ("AOCI"), is summarized as follows: | |||||||||||||||
(in millions) | Foreign currency translation adjustments | AOCI | (in millions) | Foreign currency translation adjustments | AOCI | |||||||||||
Balance at January 1, 2013 | $ | 186 | 186 | Balance at January 1, 2011 | $ | 209 | 209 | |||||||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (88 | ) | (88 | ) | Other comprehensive loss attributable to QVC, Inc. shareholder | (15 | ) | (15 | ) | |||||||
Balance at June 30, 2013 | 98 | 98 | Balance at December 31, 2011 | 194 | 194 | |||||||||||
Other comprehensive loss attributable to QVC, Inc. shareholder | (8 | ) | (8 | ) | ||||||||||||
Balance at January 1, 2014 | $ | 139 | 139 | Balance at December 31, 2012 | 186 | 186 | ||||||||||
Other comprehensive income attributable to QVC, Inc. stockholder | 15 | 15 | Other comprehensive loss attributable to QVC, Inc. shareholder | (47 | ) | (47 | ) | |||||||||
Balance at December 31, 2013 | 139 | 139 | ||||||||||||||
Balance at June 30, 2014 | 154 | 154 | ||||||||||||||
Schedule of Component of Comprehensive Income (Loss) | ' | ' | ||||||||||||||
The following table summarizes the tax effects related to the component of other comprehensive income: | The following table summarizes the tax effects related to the component of other comprehensive income: | |||||||||||||||
(in millions) | Before-tax amount | Tax (expense) benefit | Net-of-tax amount | (in millions) | Before-tax amount | Tax (expense) benefit | Net-of-tax amount | |||||||||
Three months ended June 30, 2014: | Year ended December 31, 2013: | |||||||||||||||
Foreign currency translation adjustments | $ | 2 | — | 2 | Foreign currency translation adjustments | $ | (64 | ) | (8 | ) | (72 | ) | ||||
Other comprehensive loss | (64 | ) | (8 | ) | (72 | ) | ||||||||||
Other comprehensive income | 2 | — | 2 | |||||||||||||
Year ended December 31, 2012: | ||||||||||||||||
Three months ended June 30, 2013: | Foreign currency translation adjustments | $ | (48 | ) | 21 | (27 | ) | |||||||||
Foreign currency translation adjustments | $ | (13 | ) | (3 | ) | (16 | ) | Other comprehensive loss | (48 | ) | 21 | (27 | ) | |||
Other comprehensive loss | (13 | ) | (3 | ) | (16 | ) | ||||||||||
Six months ended June 30, 2014: | Year ended December 31, 2011: | |||||||||||||||
Foreign currency translation adjustments | $ | 21 | (3 | ) | 18 | Foreign currency translation adjustments | $ | (20 | ) | 10 | (10 | ) | ||||
Other comprehensive income (loss) | 21 | (3 | ) | 18 | Other comprehensive loss | (20 | ) | 10 | (10 | ) | ||||||
Six months ended June 30, 2013: | ||||||||||||||||
Foreign currency translation adjustments | $ | (129 | ) | 22 | (107 | ) | ||||||||||
Other comprehensive (loss) income | (129 | ) | 22 | (107 | ) | |||||||||||
GuarantorNonGuarantor_Subsidia1
Guarantor/Non-Guarantor Subsidiary Financial Information (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | ' | ' | |||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Year | ' | ' | |||||||||||||||||||||||||||
Condensed consolidating balance sheets | |||||||||||||||||||||||||||||
Consolidating balance sheets | |||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | December 31, 2013 | |||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated— | ||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | issuer— | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||
Assets | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||
Current assets: | Assets | ||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 18 | 162 | 368 | — | 548 | Cash and cash equivalents | $ | 78 | 133 | 246 | — | 457 | ||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | ||||||||||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | Accounts receivable, net | 816 | — | 295 | — | 1,111 | ||||||||||||||||||
Inventories | 684 | — | 247 | — | 931 | ||||||||||||||||||||||||
Accounts receivable, net | 490 | — | 266 | — | 756 | Deferred income taxes | 146 | — | 16 | — | 162 | ||||||||||||||||||
Prepaid expenses | 20 | — | 27 | — | 47 | ||||||||||||||||||||||||
Inventories | 725 | — | 264 | — | 989 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Deferred income taxes | 147 | — | 18 | — | 165 | Total current assets | 1,755 | 133 | 834 | — | 2,722 | ||||||||||||||||||
Property, plant and equipment, net | 265 | 67 | 774 | — | 1,106 | ||||||||||||||||||||||||
Prepaid expenses | 28 | — | 29 | — | 57 | Cable and satellite television distribution rights, net | — | 510 | 114 | — | 624 | ||||||||||||||||||
Goodwill | 4,169 | — | 1,028 | — | 5,197 | ||||||||||||||||||||||||
Total current assets | 1,419 | 162 | 948 | — | 2,529 | Other intangible assets, net | 1,128 | 2,050 | 158 | — | 3,336 | ||||||||||||||||||
Other noncurrent assets | 8 | — | 63 | — | 71 | ||||||||||||||||||||||||
Property and equipment, net | 253 | 66 | 757 | — | 1,076 | Investments in subsidiaries | 4,894 | 1,628 | — | (6,522 | ) | — | |||||||||||||||||
Cable and satellite television distribution rights, net | — | 441 | 99 | — | 540 | | | | | | | | | | | | | | | | | | |||||||
Total assets | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | ||||||||||||||||||||||
Goodwill | 4,169 | — | 1,041 | — | 5,210 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Other intangible assets, net | 1,092 | 2,049 | 102 | — | 3,243 | Liabilities and equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||
Other noncurrent assets | 9 | — | 60 | — | 69 | Current portion of debt and capital lease obligations | $ | 2 | — | 11 | — | 13 | |||||||||||||||||
Accounts payable—trade | 266 | — | 159 | — | 425 | ||||||||||||||||||||||||
Investments in subsidiaries | 4,893 | 1,601 | — | (6,494 | ) | — | Accrued liabilities | 463 | 96 | 470 | — | 1,029 | |||||||||||||||||
Intercompany accounts payable (receivable) | 1,019 | (879 | ) | (140 | ) | — | — | ||||||||||||||||||||||
Total assets | $ | 11,835 | 4,319 | 3,007 | (6,494 | ) | 12,667 | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Liabilities and equity | Total current liabilities | 1,750 | (783 | ) | 500 | — | 1,467 | ||||||||||||||||||||||
Current liabilities: | Long-term portion of debt and capital lease obligations | 3,745 | — | 55 | — | 3,800 | |||||||||||||||||||||||
Deferred compensation | 13 | — | 1 | — | 14 | ||||||||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 9 | — | 11 | Deferred income taxes | 399 | 923 | 4 | — | 1,326 | |||||||||||||||||
Other long-term liabilities | 90 | — | 18 | — | 108 | ||||||||||||||||||||||||
Accounts payable-trade | 275 | — | 195 | — | 470 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Accrued liabilities | 150 | 86 | 507 | — | 743 | Total liabilities | 5,997 | 140 | 578 | — | 6,715 | ||||||||||||||||||
Intercompany accounts payable (receivable) | 1,084 | (814 | ) | (270 | ) | — | — | | | | | | | | | | | | | | | | | | |||||
Equity: | |||||||||||||||||||||||||||||
Total current liabilities | 1,511 | (728 | ) | 441 | — | 1,224 | QVC, Inc. shareholder's equity | 6,222 | 4,248 | 2,274 | (6,522 | ) | 6,222 | ||||||||||||||||
Noncontrolling interest | — | — | 119 | — | 119 | ||||||||||||||||||||||||
Long-term portion of debt and capital lease obligations | 3,886 | — | 51 | — | 3,937 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Deferred compensation | 14 | — | — | — | 14 | Total equity | 6,222 | 4,248 | 2,393 | (6,522 | ) | 6,341 | |||||||||||||||||
Deferred income taxes | 319 | 901 | 3 | — | 1,223 | | | | | | | | | | | | | | | | | | |||||||
Total liabilities and equity | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | ||||||||||||||||||||||
Other long-term liabilities | 109 | — | 48 | — | 157 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Total liabilities | 5,839 | 173 | 543 | — | 6,555 | ||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
QVC, Inc. stockholder's equity | 5,996 | 4,146 | 2,348 | (6,494 | ) | 5,996 | |||||||||||||||||||||||
Noncontrolling interest | — | — | 116 | — | 116 | ||||||||||||||||||||||||
Total equity | 5,996 | 4,146 | 2,464 | (6,494 | ) | 6,112 | |||||||||||||||||||||||
Total liabilities and equity | $ | 11,835 | 4,319 | 3,007 | (6,494 | ) | 12,667 | ||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Year | ' | ' | |||||||||||||||||||||||||||
Condensed consolidating balance sheets | |||||||||||||||||||||||||||||
Consolidating balance sheets—Adjusted | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | December 31, 2012 | |||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated— | ||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | issuer— | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||
Assets | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||
Current assets: | Assets | ||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 78 | 133 | 246 | — | 457 | Cash and cash equivalents | $ | 75 | 165 | 300 | — | 540 | ||||||||||||||||
Restricted cash | 13 | — | 2 | — | 15 | ||||||||||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | Accounts receivable, net | 747 | — | 308 | — | 1,055 | ||||||||||||||||||
Inventories | 691 | — | 218 | — | 909 | ||||||||||||||||||||||||
Accounts receivable, net | 816 | — | 295 | — | 1,111 | Deferred income taxes | 131 | — | 20 | — | 151 | ||||||||||||||||||
Prepaid expenses | 19 | — | 34 | — | 53 | ||||||||||||||||||||||||
Inventories | 684 | — | 247 | — | 931 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Deferred income taxes | 146 | — | 16 | — | 162 | Total current assets | 1,676 | 165 | 882 | — | 2,723 | ||||||||||||||||||
Property, plant and equipment, net | 247 | 67 | 817 | — | 1,131 | ||||||||||||||||||||||||
Prepaid expenses | 20 | — | 27 | — | 47 | Cable and satellite television distribution rights, net | — | 618 | 146 | — | 764 | ||||||||||||||||||
Goodwill | 4,169 | — | 1,065 | — | 5,234 | ||||||||||||||||||||||||
Total current assets | 1,755 | 133 | 834 | — | 2,722 | Other intangible assets, net | 1,280 | 2,049 | 180 | — | 3,509 | ||||||||||||||||||
Other noncurrent assets | 14 | — | 63 | — | 77 | ||||||||||||||||||||||||
Property and equipment, net | 265 | 67 | 774 | — | 1,106 | Investments in subsidiaries | 4,844 | 1,838 | — | (6,682 | ) | — | |||||||||||||||||
Cable and satellite television distribution rights, net | — | 510 | 114 | — | 624 | | | | | | | | | | | | | | | | | | |||||||
Total assets | $ | 12,230 | 4,737 | 3,153 | (6,682 | ) | 13,438 | ||||||||||||||||||||||
Goodwill | 4,169 | — | 1,028 | — | 5,197 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Other intangible assets, net | 1,128 | 2,050 | 158 | — | 3,336 | | | | | | | | | | | | | | | | | | |||||||
Other noncurrent assets | 8 | — | 63 | — | 71 | Liabilities and equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||
Investments in subsidiaries | 4,894 | 1,628 | — | (6,522 | ) | — | Current portion of debt and capital lease obligations | $ | 2 | — | 10 | — | 12 | ||||||||||||||||
Accounts payable—trade | 324 | — | 242 | — | 566 | ||||||||||||||||||||||||
Total assets | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | Accrued liabilities | 402 | 106 | 447 | — | 955 | ||||||||||||||||
Intercompany accounts payable (receivable) | 829 | (816 | ) | (13 | ) | — | — | ||||||||||||||||||||||
Liabilities and equity | |||||||||||||||||||||||||||||
Current liabilities: | | | | | | | | | | | | | | | | | | ||||||||||||
Total current liabilities | 1,557 | (710 | ) | 686 | — | 1,533 | |||||||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 11 | — | 13 | Long-term portion of debt and capital lease obligations | 3,404 | — | 61 | — | 3,465 | |||||||||||||||||
Deferred compensation | 11 | — | 1 | — | 12 | ||||||||||||||||||||||||
Accounts payable-trade | 336 | — | 158 | — | 494 | Deferred income taxes | 431 | 964 | 15 | — | 1,410 | ||||||||||||||||||
Other long-term liabilities | 137 | 17 | 30 | — | 184 | ||||||||||||||||||||||||
Accrued liabilities | 393 | 96 | 471 | — | 960 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Intercompany accounts payable (receivable) | 1,019 | (879 | ) | (140 | ) | — | — | Total liabilities | 5,540 | 271 | 793 | — | 6,604 | ||||||||||||||||
Total current liabilities | 1,750 | (783 | ) | 500 | — | 1,467 | | | | | | | | | | | | | | | | | | ||||||
Equity: | |||||||||||||||||||||||||||||
Long-term portion of debt and capital lease obligations | 3,745 | — | 55 | — | 3,800 | QVC, Inc. shareholder's equity | 6,690 | 4,466 | 2,216 | (6,682 | ) | 6,690 | |||||||||||||||||
Noncontrolling interest | — | — | 144 | — | 144 | ||||||||||||||||||||||||
Deferred compensation | 13 | — | 1 | — | 14 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Deferred income taxes | 399 | 923 | 4 | — | 1,326 | Total equity | 6,690 | 4,466 | 2,360 | (6,682 | ) | 6,834 | |||||||||||||||||
Other long-term liabilities | 90 | — | 18 | — | 108 | | | | | | | | | | | | | | | | | | |||||||
Total liabilities and equity | $ | 12,230 | 4,737 | 3,153 | (6,682 | ) | 13,438 | ||||||||||||||||||||||
Total liabilities | 5,997 | 140 | 578 | — | 6,715 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Equity: | | | | | | | | | | | | | | | | | | ||||||||||||
QVC, Inc. stockholder's equity | 6,222 | 4,248 | 2,274 | (6,522 | ) | 6,222 | |||||||||||||||||||||||
Noncontrolling interest | — | — | 119 | — | 119 | ||||||||||||||||||||||||
Total equity | 6,222 | 4,248 | 2,393 | (6,522 | ) | 6,341 | |||||||||||||||||||||||
Total liabilities and equity | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | ||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Year | ' | ' | |||||||||||||||||||||||||||
Condensed consolidating statements of operations | Consolidating statements of operations | ||||||||||||||||||||||||||||
Six months ended June 30, 2014 | Year ended December, 2013 | ||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||
Net revenue | $ | 2,692 | 364 | 1,399 | (455 | ) | 4,000 | Net revenue | $ | 5,914 | 841 | 2,914 | (1,046 | ) | 8,623 | ||||||||||||||
Cost of goods sold | 1,692 | 48 | 878 | (112 | ) | 2,506 | Cost of goods sold | 3,804 | 107 | 1,831 | (277 | ) | 5,465 | ||||||||||||||||
Gross profit | 1,000 | 316 | 521 | (343 | ) | 1,494 | Gross profit | 2,110 | 734 | 1,083 | (769 | ) | 3,158 | ||||||||||||||||
Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||
Operating | 82 | 95 | 181 | — | 358 | Operating | 168 | 214 | 358 | — | 740 | ||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 466 | (1 | ) | 181 | (343 | ) | 303 | Selling, general and administrative, including stock-based compensation | 1,028 | — | 356 | (769 | ) | 615 | |||||||||||||||
Depreciation | 19 | 3 | 44 | — | 66 | Depreciation | 38 | 6 | 83 | — | 127 | ||||||||||||||||||
Amortization | 110 | 77 | 36 | — | 223 | Amortization of intangible assets | 204 | 146 | 81 | — | 431 | ||||||||||||||||||
Intercompany management expense (income) | 40 | (8 | ) | (32 | ) | — | — | Intercompany management expense (income) | 50 | 1 | (51 | ) | — | — | |||||||||||||||
717 | 166 | 410 | (343 | ) | 950 | 1,488 | 367 | 827 | (769 | ) | 1,913 | ||||||||||||||||||
Operating income | 283 | 150 | 111 | — | 544 | Operating income | 622 | 367 | 256 | — | 1,245 | ||||||||||||||||||
Other (expense) income: | Other (expense) income: | ||||||||||||||||||||||||||||
Equity in losses of investee | — | — | (3 | ) | — | (3 | ) | Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | ||||||||||||||
Interest expense, net | (113 | ) | — | (9 | ) | — | (122 | ) | Gains on financial instruments | 12 | — | 3 | — | 15 | |||||||||||||||
Foreign currency (loss) gain | (3 | ) | — | 3 | — | — | Interest expense, net | (214 | ) | — | — | — | (214 | ) | |||||||||||||||
Intercompany interest and other (expense) income | (10 | ) | 26 | 4 | (20 | ) | — | Foreign currency (loss) gain | (13 | ) | — | 14 | — | 1 | |||||||||||||||
(126 | ) | 26 | (5 | ) | (20 | ) | (125 | ) | Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | |||||||||||||
Income before income taxes | 157 | 176 | 106 | (20 | ) | 419 | Intercompany interest (expense) income | (16 | ) | 51 | (35 | ) | — | — | |||||||||||||||
Income tax expense | (7 | ) | (52 | ) | (98 | ) | — | (157 | ) | (288 | ) | 51 | (22 | ) | — | (259 | ) | ||||||||||||
Equity in earnings (losses) of subsidiaries, net of tax | 112 | (19 | ) | — | (93 | ) | — | Income before income taxes | 334 | 418 | 234 | — | 986 | ||||||||||||||||
Net income | 262 | 105 | 8 | (113 | ) | 262 | Income tax expense | (119 | ) | (132 | ) | (102 | ) | — | (353 | ) | |||||||||||||
Less net income attributable to the noncontrolling interest | (19 | ) | — | (19 | ) | 19 | (19 | ) | Equity in earnings of subsidiaries, net of tax | 418 | 67 | — | (485 | ) | — | ||||||||||||||
Net income (loss) attributable to QVC, Inc. stockholder | $ | 243 | 105 | (11 | ) | (94 | ) | 243 | Net income | 633 | 353 | 132 | (485 | ) | 633 | ||||||||||||||
Condensed consolidating statements of operations | Less net income attributable to the noncontrolling interest | (45 | ) | — | (45 | ) | 45 | (45 | ) | ||||||||||||||||||||
Net income attributable to QVC, Inc. shareholder | $ | 588 | 353 | 87 | (440 | ) | 588 | ||||||||||||||||||||||
Three months ended June 30, 2014 | |||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||||||
Net revenue | $ | 1,368 | 187 | 692 | (233 | ) | 2,014 | ||||||||||||||||||||||
Cost of goods sold | 850 | 23 | 432 | (55 | ) | 1,250 | |||||||||||||||||||||||
Gross profit | 518 | 164 | 260 | (178 | ) | 764 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Operating | 42 | 49 | 89 | — | 180 | ||||||||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 243 | 1 | 89 | (178 | ) | 155 | |||||||||||||||||||||||
Depreciation | 10 | 1 | 22 | — | 33 | ||||||||||||||||||||||||
Amortization | 58 | 38 | 16 | — | 112 | ||||||||||||||||||||||||
Intercompany management expense (income) | 20 | (5 | ) | (15 | ) | — | — | ||||||||||||||||||||||
373 | 84 | 201 | (178 | ) | 480 | ||||||||||||||||||||||||
Operating income | 145 | 80 | 59 | — | 284 | ||||||||||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||
Interest expense, net | (60 | ) | — | — | — | (60 | ) | ||||||||||||||||||||||
Foreign currency (loss) gain | (1 | ) | — | 2 | — | 1 | |||||||||||||||||||||||
Intercompany interest and other (expense) income | (5 | ) | 13 | 12 | (20 | ) | — | ||||||||||||||||||||||
(66 | ) | 13 | 12 | (20 | ) | (61 | ) | ||||||||||||||||||||||
Income before income taxes | 79 | 93 | 71 | (20 | ) | 223 | |||||||||||||||||||||||
Income tax expense | (27 | ) | (28 | ) | (28 | ) | — | (83 | ) | ||||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 88 | 29 | — | (117 | ) | — | |||||||||||||||||||||||
Net income | 140 | 94 | 43 | (137 | ) | 140 | |||||||||||||||||||||||
Less net income attributable to the noncontrolling interest | (10 | ) | — | (10 | ) | 10 | (10 | ) | |||||||||||||||||||||
Net income attributable to QVC, Inc. stockholder | $ | 130 | 94 | 33 | (127 | ) | 130 | ||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Year | ' | ' | |||||||||||||||||||||||||||
Condensed consolidating statements of operations - Adjusted | Consolidating statements of operations - Adjusted | ||||||||||||||||||||||||||||
Three months ended June 30, 2013 | Year ended December 31, 2011 | ||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||
Net revenue | $ | 1,326 | 182 | 681 | (228 | ) | 1,961 | Net revenue | $ | 5,485 | 790 | 2,988 | (995 | ) | 8,268 | ||||||||||||||
Cost of goods sold | 836 | 23 | 427 | (59 | ) | 1,227 | Cost of goods sold | 3,507 | 120 | 1,906 | (255 | ) | 5,278 | ||||||||||||||||
Gross profit | 490 | 159 | 254 | (169 | ) | 734 | Gross profit | 1,978 | 670 | 1,082 | (740 | ) | 2,990 | ||||||||||||||||
Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||
Operating | 38 | 48 | 85 | — | 171 | Operating | 166 | 201 | 377 | — | 744 | ||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 227 | — | 80 | (169 | ) | 138 | Selling, general and administrative, including stock-based compensation | 947 | — | 328 | (740 | ) | 535 | ||||||||||||||||
Depreciation | 9 | 2 | 22 | — | 33 | Depreciation | 36 | 4 | 95 | — | 135 | ||||||||||||||||||
Amortization | 51 | 36 | 20 | — | 107 | Amortization of intangible assets | 242 | 133 | 64 | — | 439 | ||||||||||||||||||
Intercompany management expense (income) | 15 | (4 | ) | (11 | ) | — | — | Intercompany management expense (income) | 89 | (27 | ) | (62 | ) | — | — | ||||||||||||||
340 | 82 | 196 | (169 | ) | 449 | 1,480 | 311 | 802 | (740 | ) | 1,853 | ||||||||||||||||||
Operating income | 150 | 77 | 58 | — | 285 | Operating income | 498 | 359 | 280 | — | 1,137 | ||||||||||||||||||
Other (expense) income: | Other (expense) income: | ||||||||||||||||||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Gains on financial instruments | — | — | 3 | — | 3 | Gains on financial instruments | 50 | — | — | — | 50 | ||||||||||||||||||
Interest (expense) income, net | (50 | ) | (1 | ) | 1 | — | (50 | ) | Interest (expense) income | (230 | ) | — | 1 | — | (229 | ) | |||||||||||||
Foreign currency (loss) gain | (1 | ) | — | 1 | — | — | Foreign currency (loss) gain | (3 | ) | (2 | ) | 3 | — | (2 | ) | ||||||||||||||
Loss on extinguishment of debt | (16 | ) | — | — | — | (16 | ) | Intercompany interest (expense) income | (9 | ) | 53 | (44 | ) | — | — | ||||||||||||||
Intercompany interest and other (expense) income | (4 | ) | 12 | (8 | ) | — | — | (192 | ) | 51 | (42 | ) | — | (183 | ) | ||||||||||||||
(71 | ) | 11 | (5 | ) | — | (65 | ) | Income before income taxes | 306 | 410 | 238 | — | 954 | ||||||||||||||||
Income before income taxes | 79 | 88 | 53 | — | 220 | Income tax expense | (110 | ) | (124 | ) | (108 | ) | — | (342 | ) | ||||||||||||||
Income tax expense | (21 | ) | (32 | ) | (28 | ) | — | (81 | ) | Equity in earnings of subsidiaries, net of tax | 416 | 70 | — | (486 | ) | — | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 81 | 11 | — | (92 | ) | — | Net income | 612 | 356 | 130 | (486 | ) | 612 | ||||||||||||||||
Net income | 139 | 67 | 25 | (92 | ) | 139 | Less net income attributable to the noncontrolling interest | (52 | ) | — | (52 | ) | 52 | (52 | ) | ||||||||||||||
Less net income attributable to the noncontrolling interest | (13 | ) | — | (13 | ) | 13 | (13 | ) | Net income attributable to QVC, Inc. shareholder | $ | 560 | 356 | 78 | (434 | ) | 560 | |||||||||||||
Net income attributable to QVC, Inc. stockholder | $ | 126 | 67 | 12 | (79 | ) | 126 | Consolidating statements of operations - Adjusted | |||||||||||||||||||||
Condensed consolidating statements of operations - Adjusted | |||||||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||||||||
Six months ended June 30, 2013 | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Net revenue | $ | 5,653 | 819 | 3,078 | (1,034 | ) | 8,516 | ||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||||||
Net revenue | $ | 2,640 | 365 | 1,389 | (459 | ) | 3,935 | Cost of goods sold | 3,644 | 116 | 1,941 | (282 | ) | 5,419 | |||||||||||||||
Cost of goods sold | 1,679 | 49 | 871 | (120 | ) | 2,479 | Gross profit | 2,009 | 703 | 1,137 | (752 | ) | 3,097 | ||||||||||||||||
Gross profit | 961 | 316 | 518 | (339 | ) | 1,456 | Operating expenses: | ||||||||||||||||||||||
Operating expenses: | Operating | 140 | 206 | 369 | — | 715 | |||||||||||||||||||||||
Operating | 75 | 93 | 176 | — | 344 | Selling, general and administrative, including stock-based compensation | 1,002 | 1 | 337 | (752 | ) | 588 | |||||||||||||||||
Selling, general and administrative, including stock-based compensation | 463 | — | 169 | (339 | ) | 293 | Depreciation | 35 | 4 | 87 | — | 126 | |||||||||||||||||
Depreciation | 19 | 3 | 41 | — | 63 | Amortization of intangible assets | 204 | 130 | 66 | — | 400 | ||||||||||||||||||
Amortization | 102 | 70 | 39 | — | 211 | Intercompany management expense (income) | 60 | (14 | ) | (46 | ) | — | — | ||||||||||||||||
Intercompany management expense (income) | 32 | (7 | ) | (25 | ) | — | — | 1,441 | 327 | 813 | (752 | ) | 1,829 | ||||||||||||||||
691 | 159 | 400 | (339 | ) | 911 | Operating income | 568 | 376 | 324 | — | 1,268 | ||||||||||||||||||
Operating income | 270 | 157 | 118 | — | 545 | Other (expense) income: | |||||||||||||||||||||||
Other (expense) income: | Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||||||
Equity in losses of investee | — | — | (1 | ) | — | (1 | ) | Gains on financial instruments | 48 | — | — | — | 48 | ||||||||||||||||
Gains on financial instruments | 12 | — | 3 | — | 15 | Interest expense, net | (233 | ) | — | — | — | (233 | ) | ||||||||||||||||
Interest expense, net | (112 | ) | (1 | ) | — | — | (113 | ) | Foreign currency (loss) gain | (10 | ) | 4 | 8 | — | 2 | ||||||||||||||
Foreign currency (loss) gain | (2 | ) | (1 | ) | 2 | — | (1 | ) | Intercompany interest (expense) income | (13 | ) | 51 | (38 | ) | — | — | |||||||||||||
Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | (208 | ) | 55 | (34 | ) | — | (187 | ) | ||||||||||||||
Intercompany interest and other (expense) income | (7 | ) | 25 | (18 | ) | — | — | Income before income taxes | 360 | 431 | 290 | — | 1,081 | ||||||||||||||||
(166 | ) | 23 | (14 | ) | — | (157 | ) | Income tax expense | (116 | ) | (141 | ) | (137 | ) | — | (394 | ) | ||||||||||||
Income before income taxes | 104 | 180 | 104 | — | 388 | Equity in earnings of subsidiaries, net of tax | 443 | 93 | — | (536 | ) | — | |||||||||||||||||
Income tax expense | (32 | ) | (60 | ) | (51 | ) | — | (143 | ) | Net income | 687 | 383 | 153 | (536 | ) | 687 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 173 | 26 | — | (199 | ) | — | Less net income attributable to the noncontrolling interest | (63 | ) | — | (63 | ) | 63 | (63 | ) | ||||||||||||||
Net income | 245 | 146 | 53 | (199 | ) | 245 | Net income attributable to QVC, Inc. shareholder | $ | 624 | 383 | 90 | (473 | ) | 624 | |||||||||||||||
Less net income attributable to the noncontrolling interest | (25 | ) | — | (25 | ) | 25 | (25 | ) | |||||||||||||||||||||
Net income attributable to QVC, Inc. stockholder | $ | 220 | 146 | 28 | (174 | ) | 220 | ||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Year | ' | ' | |||||||||||||||||||||||||||
Condensed consolidating statements of comprehensive income | |||||||||||||||||||||||||||||
Consolidating statements of comprehensive income | |||||||||||||||||||||||||||||
Three months ended June 30, 2014 | |||||||||||||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | Year ended December 31, 2013 | |||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated— | ||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | issuer— | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||
Net income | $ | 140 | 94 | 43 | (137 | ) | 140 | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||
Net income | $ | 633 | 353 | 132 | (485 | ) | 633 | ||||||||||||||||||||||
Foreign currency translation adjustments | 2 | — | 2 | (2 | ) | 2 | Foreign currency translation adjustments | (72 | ) | — | (72 | ) | 72 | (72 | ) | ||||||||||||||
Total comprehensive income | 142 | 94 | 45 | (139 | ) | 142 | | | | | | | | | | | | | | | | | | ||||||
Total comprehensive income | 561 | 353 | 60 | (413 | ) | 561 | |||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (10 | ) | — | (10 | ) | 10 | (10 | ) | Comprehensive income attributable to noncontrolling interest | (20 | ) | — | (20 | ) | 20 | (20 | ) | ||||||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 132 | 94 | 35 | (129 | ) | 132 | | | | | | | | | | | | | | | | | | |||||
Comprehensive income attributable to QVC, Inc. shareholder | $ | 541 | 353 | 40 | (393 | ) | 541 | ||||||||||||||||||||||
Condensed consolidating statements of comprehensive income | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Six months ended June 30, 2014 | |||||||||||||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||||||
Net income | $ | 262 | 105 | 8 | (113 | ) | 262 | ||||||||||||||||||||||
Foreign currency translation adjustments | 18 | — | 18 | (18 | ) | 18 | |||||||||||||||||||||||
Total comprehensive income | 280 | 105 | 26 | (131 | ) | 280 | |||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (22 | ) | — | (22 | ) | 22 | (22 | ) | |||||||||||||||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 258 | 105 | 4 | (109 | ) | 258 | ||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Year | ' | ' | |||||||||||||||||||||||||||
Three months ended June 30, 2013 | Year ended December 31, 2011 | ||||||||||||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||
Net income | $ | 139 | 67 | 25 | (92 | ) | 139 | Net income | 612 | 356 | 130 | (486 | ) | 612 | |||||||||||||||
Foreign currency translation adjustments | (16 | ) | — | (16 | ) | 16 | (16 | ) | Foreign currency translation adjustments | (10 | ) | — | (10 | ) | 10 | (10 | ) | ||||||||||||
Total comprehensive income | 123 | 67 | 9 | (76 | ) | 123 | Total comprehensive income | 602 | 356 | 120 | (476 | ) | 602 | ||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (7 | ) | — | (7 | ) | 7 | (7 | ) | Comprehensive income attributable to noncontrolling interest | (57 | ) | — | (57 | ) | 57 | (57 | ) | ||||||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 116 | 67 | 2 | (69 | ) | 116 | Comprehensive income attributable to QVC, Inc. shareholder | $ | 545 | 356 | 63 | (419 | ) | 545 | ||||||||||||||
Condensed consolidating statements of comprehensive income - Adjusted | |||||||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Six months ended June 30, 2013 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | Net income | $ | 687 | 383 | 153 | (536 | ) | 687 | ||||||||||||||||||
Net income | $ | 245 | 146 | 53 | (199 | ) | 245 | ||||||||||||||||||||||
Foreign currency translation adjustments | (27 | ) | — | (27 | ) | 27 | (27 | ) | |||||||||||||||||||||
Foreign currency translation adjustments | (107 | ) | — | (107 | ) | 107 | (107 | ) | |||||||||||||||||||||
Total comprehensive income | 660 | 383 | 126 | (509 | ) | 660 | |||||||||||||||||||||||
Total comprehensive income (loss) | 138 | 146 | (54 | ) | (92 | ) | 138 | ||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (44 | ) | — | (44 | ) | 44 | (44 | ) | |||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (6 | ) | — | (6 | ) | 6 | (6 | ) | |||||||||||||||||||||
Comprehensive income attributable to QVC, Inc. shareholder | $ | 616 | 383 | 82 | (465 | ) | 616 | ||||||||||||||||||||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 132 | 146 | (60 | ) | (86 | ) | 132 | |||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Year | ' | ' | |||||||||||||||||||||||||||
Condensed consolidating statements of cash flows | Consolidating statements of cash flows | ||||||||||||||||||||||||||||
Six months ended June 30, 2014 | Year ended December 31, 2013 | ||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||
Operating activities: | Operating activities: | ||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 217 | 172 | 160 | — | 549 | Net cash provided by operating activities | $ | 379 | 389 | 205 | — | 973 | ||||||||||||||||
Investing activities: | Investing activities: | ||||||||||||||||||||||||||||
Capital expenditures, net | (74 | ) | (1 | ) | 38 | (20 | ) | (57 | ) | Capital expenditures, net | (106 | ) | (8 | ) | (97 | ) | — | (211 | ) | ||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (8 | ) | — | — | (8 | ) | Expenditures for cable and satellite television distribution rights, net | — | (56 | ) | (2 | ) | — | (58 | ) | |||||||||||||
Intercompany investing activities | 114 | 27 | — | (141 | ) | — | Decrease (increase) in restricted cash | 2 | — | (1 | ) | — | 1 | ||||||||||||||||
Net cash provided by (used in) investing activities | 40 | 18 | 38 | (161 | ) | (65 | ) | Changes in other noncurrent assets | (1 | ) | — | (1 | ) | — | (2 | ) | |||||||||||||
Financing activities: | Intercompany investing activities | 368 | 277 | — | (645 | ) | — | ||||||||||||||||||||||
Principal payments of debt and capital lease obligations | (1,414 | ) | — | (5 | ) | — | (1,419 | ) | Net cash provided by (used in) investing activities | 263 | 213 | (101 | ) | (645 | ) | (270 | ) | ||||||||||||
Principal borrowings of debt from senior secured credit facility | 554 | — | — | — | 554 | Financing activities: | |||||||||||||||||||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | — | — | — | 999 | Principal payments of debt and capital lease obligations | (2,375 | ) | — | (12 | ) | — | (2,387 | ) | |||||||||||||||
Payment of debt origination fees | (12 | ) | — | — | — | (12 | ) | Principal borrowings of debt from senior secured credit facility | 1,674 | — | — | — | 1,674 | ||||||||||||||||
Other financing activities | (4 | ) | — | — | — | (4 | ) | Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | ||||||||||||||||
Dividends paid to Liberty | (480 | ) | — | — | — | (480 | ) | Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | ||||||||||||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | ||||||||||||||
Net short-term intercompany debt borrowings (repayments) | 65 | 65 | (130 | ) | — | — | Other financing activities | 12 | — | — | — | 12 | |||||||||||||||||
Intercompany financing activities | (25 | ) | (226 | ) | 90 | 161 | — | Dividends paid to Liberty | (1,005 | ) | — | — | — | (1,005 | ) | ||||||||||||||
Net cash used in financing activities | (317 | ) | (161 | ) | (70 | ) | 161 | (387 | ) | Dividends paid to noncontrolling interest | — | — | (45 | ) | — | (45 | ) | ||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (6 | ) | — | (6 | ) | Net short-term intercompany debt borrowings (repayments) | 190 | (63 | ) | (127 | ) | — | — | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (60 | ) | 29 | 122 | — | 91 | Intercompany financing activities | (123 | ) | (571 | ) | 49 | 645 | — | |||||||||||||||
Cash and cash equivalents, beginning of period | 78 | 133 | 246 | — | 457 | Net cash used in financing activities | (639 | ) | (634 | ) | (135 | ) | 645 | (763 | ) | ||||||||||||||
Cash and cash equivalents, end of period | $ | 18 | 162 | 368 | — | 548 | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (23 | ) | — | (23 | ) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 3 | (32 | ) | (54 | ) | — | (83 | ) | |||||||||||||||||||||
Cash and cash equivalents, beginning of period | 75 | 165 | 300 | — | 540 | ||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 78 | 133 | 246 | — | 457 | |||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Year | ' | ' | |||||||||||||||||||||||||||
Condensed consolidating statements of cash flows - Adjusted | Consolidating statements of cash flows - Adjusted | ||||||||||||||||||||||||||||
Six months ended June 30, 2013 | Year ended December 31, 2011 | ||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||
Operating activities: | Operating activities: | ||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 275 | 115 | 52 | — | 442 | Net cash provided by operating activities | $ | 225 | 380 | 213 | — | 818 | ||||||||||||||||
Investing activities: | Investing activities: | ||||||||||||||||||||||||||||
Capital expenditures, net | (33 | ) | — | (42 | ) | — | (75 | ) | Capital expenditures, net | (83 | ) | (8 | ) | (168 | ) | — | (259 | ) | |||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (25 | ) | (1 | ) | — | (26 | ) | Expenditures for cable and satellite television distribution rights, net | — | (2 | ) | — | — | (2 | ) | |||||||||||||
Changes in other noncurrent assets | 4 | — | (3 | ) | — | 1 | Decrease in restricted cash | 1 | — | — | — | 1 | |||||||||||||||||
Intercompany investing activities | 258 | 149 | — | (407 | ) | — | Changes in other noncurrent assets and liabilities | 5 | — | (1 | ) | — | 4 | ||||||||||||||||
Net cash provided by (used in) investing activities | 229 | 124 | (46 | ) | (407 | ) | (100 | ) | Intercompany investing activities | 348 | 190 | — | (538 | ) | — | ||||||||||||||
Financing activities: | Net cash provided by (used in) investing activities | 271 | 180 | (169 | ) | (538 | ) | (256 | ) | ||||||||||||||||||||
Principal payments of debt and capital lease obligations | (1,690 | ) | — | (5 | ) | — | (1,695 | ) | Financing activities: | ||||||||||||||||||||
Principal borrowings of debt from senior secured credit facility | 1,053 | — | — | — | 1,053 | Principal payments of debt and capital lease obligations | (825 | ) | — | (12 | ) | — | (837 | ) | |||||||||||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | Principal borrowings of debt from senior secured credit facility | 465 | — | — | — | 465 | ||||||||||||||||||
Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | Dividends paid to Liberty | (205 | ) | — | — | — | (205 | ) | ||||||||||||||
Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | Dividends paid to noncontrolling interest | — | — | (50 | ) | — | (50 | ) | ||||||||||||||
Other financing activities | 7 | — | — | — | 7 | Net short-term intercompany debt borrowings (repayments) | 104 | 2 | (106 | ) | — | — | |||||||||||||||||
Dividends paid to Liberty | (765 | ) | — | — | — | (765 | ) | Intercompany financing activities | (76 | ) | (499 | ) | 37 | 538 | — | ||||||||||||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | Net cash used in financing activities | (537 | ) | (497 | ) | (131 | ) | 538 | (627 | ) | ||||||||||||
Net short-term intercompany debt (repayments) borrowings | (21 | ) | 86 | (65 | ) | — | — | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 4 | — | 4 | ||||||||||||||||
Intercompany financing activities | (143 | ) | (326 | ) | 62 | 407 | — | Net (decrease) increase in cash and cash equivalents | (41 | ) | 63 | (83 | ) | — | (61 | ) | |||||||||||||
Net cash used in financing activities | (571 | ) | (240 | ) | (33 | ) | 407 | (437 | ) | Cash and cash equivalents, beginning of period | 44 | 160 | 417 | — | 621 | ||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (29 | ) | — | (29 | ) | Cash and cash equivalents, end of period | $ | 3 | 223 | 334 | — | 560 | |||||||||||||||
Net decrease in cash and cash equivalents | (67 | ) | (1 | ) | (56 | ) | — | (124 | ) | Consolidating statements of cash flows - Adjusted | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 75 | 165 | 300 | — | 540 | ||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 8 | 164 | 244 | — | 416 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 462 | 412 | 332 | — | 1,206 | |||||||||||||||||||||||
Investing activities: | |||||||||||||||||||||||||||||
Capital expenditures, net | (76 | ) | (5 | ) | (165 | ) | — | (246 | ) | ||||||||||||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (1 | ) | (1 | ) | — | (2 | ) | |||||||||||||||||||||
Cash paid for joint ventures and acquisitions of businesses, net of cash received | — | — | (95 | ) | — | (95 | ) | ||||||||||||||||||||||
Decrease in restricted cash | 2 | — | — | — | 2 | ||||||||||||||||||||||||
Changes in other noncurrent assets | (3 | ) | — | — | — | (3 | ) | ||||||||||||||||||||||
Intercompany investing activities | 443 | 265 | — | (708 | ) | — | |||||||||||||||||||||||
Net cash provided by (used in) investing activities | 366 | 259 | (261 | ) | (708 | ) | (344 | ) | |||||||||||||||||||||
Financing activities: | |||||||||||||||||||||||||||||
Principal payments of debt and capital lease obligations | (1,237 | ) | — | (9 | ) | — | (1,246 | ) | |||||||||||||||||||||
Principal borrowings of debt from senior secured credit facility | 1,717 | — | — | — | 1,717 | ||||||||||||||||||||||||
Proceeds from issuance of senior secured notes | 500 | — | — | — | 500 | ||||||||||||||||||||||||
Payment of debt origination fees | (7 | ) | — | — | — | (7 | ) | ||||||||||||||||||||||
Other financing activities | 20 | — | — | — | 20 | ||||||||||||||||||||||||
Dividends paid to Liberty | (1,817 | ) | — | — | — | (1,817 | ) | ||||||||||||||||||||||
Dividend paid to noncontrolling interest | — | — | (29 | ) | — | (29 | ) | ||||||||||||||||||||||
Net short-term intercompany debt borrowings (repayments) | 214 | (59 | ) | (155 | ) | — | — | ||||||||||||||||||||||
Intercompany financing activities | (146 | ) | (670 | ) | 108 | 708 | — | ||||||||||||||||||||||
Net cash used in financing activities | (756 | ) | (729 | ) | (85 | ) | 708 | (862 | ) | ||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (20 | ) | — | (20 | ) | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 72 | (58 | ) | (34 | ) | — | (20 | ) | |||||||||||||||||||||
Cash and cash equivalents, beginning of period | 3 | 223 | 334 | — | 560 | ||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 75 | 165 | 300 | — | 540 | |||||||||||||||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Oct. 03, 2014 | |
Live Programming - U.S. | Live Programming - U.S. | Live Programming - Japan | Live Programming - Japan | Distribution - Germany | Distribution - Germany | Live Programming - Germany | Live Programming - Germany | Distribution - U.K. | Distribution - U.K. | Live Programming - U.K. | Live Programming - U.K. | Live Programming - Italy | Live Programming - Italy | Recorded Programming - Italy | Recorded Programming - Italy | Live Programming - CNRS | Live Programming - CNRS | Recorded Programming - CNRS | Recorded Programming - CNRS | CNR Home Shopping Co., Ltd. | CNR Home Shopping Co., Ltd. | QVC-Japan | QVC-Japan | HSN, Inc. | HSN, Inc. | Liberty | ||||||
General business information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hours of distribution per day | ' | ' | ' | ' | ' | '24 hours | '24 hours | '24 hours | '24 hours | '24 hours | '24 hours | '17 hours | '23 hours | '24 hours | '24 hours | '17 hours | '17 hours | '17 hours | '17 hours | '7 hours | '7 hours | '15 hours | '15 hours | '9 hours | '9 hours | ' | ' | ' | ' | ' | ' | ' |
Days per year of programming | ' | ' | ' | ' | ' | '364 days | '364 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | 49.00% | ' | ' | ' | ' | ' |
Investment owned, percent of net assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | 60.00% | ' | ' | ' |
Noncontrolling interest, ownership percentage by noncontrolling owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 40.00% | ' | ' | ' |
Dividends paid to noncontrolling interest | ($25,000,000) | ($25,000,000) | ($45,000,000) | ($29,000,000) | ($50,000,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount in cash approved by board of directors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 970,000,000 |
Amount reattributed in cash to the Liberty Ventures Group relating to its assumption of liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 |
Parent ownership in equity investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38.00% | 38.00% | ' |
Line of credit facility amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,060,000,000 |
Cable_and_Satellite_Television2
Cable and Satellite Television Distribution Rights, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cable and satellite television distribution rights | $5,573 | ' | $5,573 | ' | $5,544 | $5,503 | ' |
Less accumulated amortization | 2,330 | ' | 2,330 | ' | 2,208 | 1,994 | ' |
Amortization | 112 | 107 | 223 | 211 | 431 | 400 | 439 |
Cable and satellite television distribution rights | ' | ' | ' | ' | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cable and satellite television distribution rights | 2,334 | ' | 2,334 | ' | 2,324 | 2,304 | ' |
Less accumulated amortization | -1,794 | ' | -1,794 | ' | -1,700 | -1,540 | ' |
Cable and satellite television distribution rights, net | 540 | ' | 540 | ' | 624 | 764 | ' |
Amortization | $46 | $44 | $93 | $86 | $177 | $163 | $167 |
Cable_and_Satellite_Television3
Cable and Satellite Television Distribution Rights, Net (Future Amortization Expense) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
2015 | $270 | $259 |
2016 | 235 | 223 |
2017 | 135 | 122 |
2018 | 9 | 9 |
Cable and satellite television distribution rights | ' | ' |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
Remainder of 2014 | 87 | ' |
2015 | 168 | 167 |
2016 | 162 | 161 |
2017 | 111 | 110 |
2018 | $6 | $5 |
Goodwill_Details
Goodwill (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | $5,197 | $5,234 | $5,239 |
Exchange rate fluctuations | 13 | -37 | -26 |
Balance as of June 30, 2014 | 5,210 | 5,197 | 5,234 |
QVC-U.S. | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | 4,190 | 4,190 | 4,169 |
Exchange rate fluctuations | 0 | 0 | 0 |
Balance as of June 30, 2014 | 4,190 | 4,190 | 4,190 |
QVC-Japan | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | 216 | 212 | 203 |
Exchange rate fluctuations | 11 | 4 | 9 |
Balance as of June 30, 2014 | 299 | 216 | 212 |
QVC-Germany | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | 348 | 334 | 328 |
Exchange rate fluctuations | -3 | 14 | 6 |
Balance as of June 30, 2014 | 345 | 348 | 334 |
QVC-U.K. | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | 288 | 349 | 393 |
Exchange rate fluctuations | 6 | -61 | -44 |
Balance as of June 30, 2014 | 222 | 288 | 349 |
QVC-Italy | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | 155 | 149 | 146 |
Exchange rate fluctuations | -1 | 6 | 3 |
Balance as of June 30, 2014 | $154 | $155 | $149 |
Other_Intangible_Assets_Net_Ot
Other Intangible Assets, Net (Other Intangible Assets) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gross cost | ' | ' | ' | ' | ' | ' | ' |
Purchased and internally developed software | $630 | ' | $630 | ' | $615 | $575 | ' |
Affiliate and customer relationships | 2,451 | ' | 2,451 | ' | 2,450 | 2,445 | ' |
Debt origination fees | 64 | ' | 64 | ' | 51 | ' | ' |
Other intangible assets (excluding goodwill), gross | 5,573 | ' | 5,573 | ' | 5,544 | 5,503 | ' |
Accumulated amortization | ' | ' | ' | ' | ' | ' | ' |
Purchased and internally developed software | -423 | ' | -423 | ' | -393 | -352 | ' |
Affiliate and customer relationships | -1,890 | ' | -1,890 | ' | -1,802 | -1,624 | ' |
Debt origination fees | -17 | ' | -17 | ' | -13 | ' | ' |
Other intangible assets (excluding goodwill), accumulated amortization | -2,330 | ' | -2,330 | ' | -2,208 | -1,994 | ' |
Other intangible assets, net | ' | ' | ' | ' | ' | ' | ' |
Purchased and internally developed software | 207 | ' | 207 | ' | 222 | ' | ' |
Affiliate and customer relationships | 561 | ' | 561 | ' | 648 | ' | ' |
Debt origination fees | 47 | ' | 47 | ' | 38 | ' | ' |
Trademarks (indefinite life) | 2,428 | ' | 2,428 | ' | 2,428 | 2,429 | ' |
Other intangible assets (excluding goodwill), net | 3,243 | ' | 3,243 | ' | 3,336 | 3,509 | ' |
Amortization of other intangible assets | $66 | $63 | $130 | $125 | $254 | $237 | $272 |
Other_Intangible_Assets_Net_Fu
Other Intangible Assets, Net (Future Amortization Expense) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
Remainder of 2014 | $146 | $280 |
2015 | 270 | 259 |
2016 | 235 | 223 |
2017 | 135 | 122 |
2018 | $9 | $9 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Accrued Liabilities [Abstract] | ' | ' | ' |
Accounts payable non-trade | $188 | $323 | $264 |
Income taxes | 98 | 126 | 154 |
Accrued compensation and benefits | 96 | 98 | 100 |
Allowance for sales returns | 80 | 108 | 92 |
Accrued interest | 78 | 58 | 50 |
Deferred revenue | 73 | 73 | 85 |
Sales and other taxes | 53 | 79 | 62 |
Other | 77 | 95 | 92 |
Accrued liabilities | $743 | $1,029 | $955 |
LongTerm_Debt_Debt_Details
Long-Term Debt (Debt) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Debt and capital lease obligations | $3,948 | $3,813 | $3,477 |
Current portion of debt and capital lease obligations | -11 | -13 | -12 |
Long-term portion of debt and capital lease obligations | 3,937 | 3,800 | 3,465 |
3.125% Senior Secured Notes due 2019, net of original issue discount | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt and capital lease obligations | 399 | 0 | ' |
7.5% Senior Secured Notes due 2019, net of original issue discount | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt and capital lease obligations | 761 | 761 | 988 |
7.375% Senior Secured Notes due 2020 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt and capital lease obligations | 500 | 500 | 500 |
5.125% Senior Secured Notes due 2022 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt and capital lease obligations | 500 | 500 | 500 |
4.375% Senior Secured Notes due 2023, net of original issue discount | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt and capital lease obligations | 750 | 750 | 0 |
4.85% Senior Secured Notes due 2024, net of original issue discount | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt and capital lease obligations | 600 | 0 | ' |
5.95% Senior Secured Notes due 2043, net of original issue discount | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt and capital lease obligations | 300 | 300 | 0 |
Senior secured credit facility | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt and capital lease obligations | 65 | 922 | 903 |
Capital lease obligations | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt and capital lease obligations | $73 | $80 | $86 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 18, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 04, 2013 | Sep. 25, 2009 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 23, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Jul. 02, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 18, 2013 | Jun. 30, 2014 | Mar. 18, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 18, 2013 |
3.125% Senior Secured Notes due 2019, net of original issue discount | 3.125% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.375% Senior Secured Notes due 2020 | 7.375% Senior Secured Notes due 2020 | 7.375% Senior Secured Notes due 2020 | 5.125% Senior Secured Notes due 2022 | 5.125% Senior Secured Notes due 2022 | 5.125% Senior Secured Notes due 2022 | 4.375% Senior Secured Notes due 2023, net of original issue discount | 4.375% Senior Secured Notes due 2023, net of original issue discount | 4.375% Senior Secured Notes due 2023, net of original issue discount | 4.85% Senior Secured Notes due 2024, net of original issue discount | 4.85% Senior Secured Notes due 2024, net of original issue discount | 5.95% Senior Secured Notes due 2043, net of original issue discount | 5.95% Senior Secured Notes due 2043, net of original issue discount | 5.95% Senior Secured Notes due 2043, net of original issue discount | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | $400,000,000 | ' | ' | ' | $1,000,000,000 | ' | ' | $500,000,000 | ' | ' | $500,000,000 | ' | ' | $750,000,000 | ' | $600,000,000 | ' | ' | $300,000,000 |
Debt instrument interest rate stated percentage | ' | ' | 3.13% | 3.13% | 7.50% | 7.50% | 7.50% | 7.50% | 7.38% | 7.38% | 7.38% | 5.13% | 5.13% | 5.13% | 4.38% | 4.38% | 4.38% | 4.85% | 4.85% | 5.95% | 5.95% | 5.95% |
Debt issuance price percentage | ' | ' | ' | 99.83% | ' | ' | ' | 98.28% | ' | ' | ' | ' | ' | ' | ' | ' | 99.97% | ' | 99.93% | ' | ' | 99.97% |
Line of credit facility remaining borrowing capacity | $1,900,000,000 | $1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility interest rate at period end | 1.90% | 1.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt weighted average interest rate | 5.50% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_and_Transponder_Service2
Leases and Transponder Service Agreements (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Capital transponders | ' | ' | ' | ' | ' | ' | ' |
Remainder of 2014 | $7 | ' | $7 | ' | $15 | ' | ' |
2015 | 11 | ' | 11 | ' | 11 | ' | ' |
2016 | 11 | ' | 11 | ' | 11 | ' | ' |
2017 | 11 | ' | 11 | ' | 11 | ' | ' |
2018 | 12 | ' | 12 | ' | 12 | ' | ' |
Thereafter | 28 | ' | 28 | ' | 28 | ' | ' |
Total | 80 | ' | 80 | ' | 88 | ' | ' |
Operating leases | ' | ' | ' | ' | ' | ' | ' |
Remainder of 2014 | 10 | ' | 10 | ' | 16 | ' | ' |
2015 | 15 | ' | 15 | ' | 14 | ' | ' |
2016 | 13 | ' | 13 | ' | 12 | ' | ' |
2017 | 10 | ' | 10 | ' | 10 | ' | ' |
2018 | 11 | ' | 11 | ' | 10 | ' | ' |
Thereafter | 101 | ' | 101 | ' | 96 | ' | ' |
Total | 160 | ' | 160 | ' | 158 | ' | ' |
Capital transponder monthly lease expense | 1 | ' | 1 | ' | 1 | ' | ' |
Capital leases income statement amortization expense | 3 | 3 | 6 | 6 | 12 | 11 | 14 |
Imputed interest on capital lease | 7 | ' | 7 | ' | 9 | ' | ' |
Operating leases rent expense net | $7 | $6 | $14 | $14 | $28 | $31 | $24 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Income tax expense | ($83) | ($81) | ($157) | ($143) | ($353) | ($394) | ($342) |
Effective income tax rate | 37.20% | ' | 37.50% | ' | 35.80% | 36.40% | 35.80% |
United States Federal Statutory Tax Rate | ' | ' | 35.00% | ' | 35.00% | 35.00% | 35.00% |
Liberty | ' | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Current tax payments due to related parties | $22 | ' | $22 | ' | $78 | ' | ' |
Assets_and_Liabilities_Measure2
Assets and Liabilities Measured at Fair Value (Details) (Recurring, USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash equivalents | $463 | $342 | $424 |
Long-term liabilities: | ' | ' | ' |
Debt (note 6) | 4,071 | 3,783 | 3,626 |
Level 1 | ' | ' | ' |
Current assets: | ' | ' | ' |
Cash equivalents | 463 | 342 | 424 |
Level 2 | ' | ' | ' |
Long-term liabilities: | ' | ' | ' |
Debt (note 6) | $4,071 | $3,783 | $3,626 |
Information_about_QVCs_Operati2
Information about QVC's Operating Segments (Revenue and Adjusted OIBDA by Segment) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $2,014 | $1,961 | $4,000 | $3,935 | $8,623 | $8,516 | $8,268 |
Adjusted OIBDA | 439 | 434 | 851 | 838 | 1,841 | 1,828 | 1,733 |
QVC-U.S. | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 1,352 | 1,312 | 2,657 | 2,609 | 5,844 | 5,585 | 5,412 |
Adjusted OIBDA | 325 | 320 | 626 | 611 | 1,352 | 1,292 | 1,225 |
QVC-Japan | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 223 | 260 | 457 | 516 | 1,024 | 1,247 | 1,127 |
Adjusted OIBDA | 43 | 57 | 90 | 111 | 212 | 279 | 241 |
QVC-Germany | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 227 | 207 | 477 | 457 | 971 | 956 | 1,068 |
Adjusted OIBDA | 40 | 35 | 79 | 78 | 173 | 179 | 199 |
QVC-U.K. | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 178 | 153 | 343 | 293 | 657 | 641 | 626 |
Adjusted OIBDA | 33 | 26 | 60 | 45 | 118 | 104 | 111 |
QVC-Italy | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 34 | 29 | 66 | 60 | 127 | 87 | 35 |
Adjusted OIBDA | ($2) | ($4) | ($4) | ($7) | ($14) | ($26) | ($43) |
Information_about_QVCs_Operati3
Information about QVC's Operating Segments (Depreciation/Amortization by Segment) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | $33 | $33 | $66 | $63 | $127 | $126 | $135 |
Amortization | 112 | 107 | 223 | 211 | 431 | 400 | 439 |
QVC-U.S. | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 14 | 14 | 27 | 27 | 55 | 51 | 52 |
Amortization | 99 | 91 | 192 | 179 | 362 | 338 | 376 |
QVC-Japan | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 4 | 5 | 9 | 8 | 23 | 16 | 29 |
Amortization | 2 | 2 | 4 | 4 | 9 | 10 | 12 |
QVC-Germany | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 8 | 8 | 16 | 16 | 30 | 31 | 33 |
Amortization | 8 | 9 | 19 | 18 | 38 | 33 | 36 |
QVC-U.K. | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 4 | 5 | 8 | 9 | 12 | 21 | 13 |
Amortization | 3 | 3 | 7 | 6 | 14 | 12 | 11 |
QVC-Italy | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 3 | 1 | 6 | 3 | 7 | 7 | 8 |
Amortization | $0 | $2 | $1 | $4 | $8 | $7 | $4 |
Information_about_QVCs_Operati4
Information about QVC's Operating Segments (Total Assets and CAPEX by Segment) (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Assets | $12,667 | ' | $13,056 | $13,438 | ' |
Net capital expenditures | 57 | 75 | 211 | 246 | 259 |
QVC-U.S. | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Assets | 9,933 | ' | 10,322 | 10,541 | ' |
Net capital expenditures | 38 | ' | 123 | ' | ' |
QVC-Japan | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Assets | 732 | ' | 732 | 969 | ' |
Net capital expenditures | -1 | ' | 16 | ' | ' |
QVC-Germany | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Assets | 1,103 | ' | 1,109 | 1,064 | ' |
Net capital expenditures | 4 | ' | 28 | ' | ' |
QVC-U.K. | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Assets | 628 | ' | 613 | 619 | ' |
Net capital expenditures | 6 | ' | 16 | ' | ' |
QVC-Italy | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Assets | 271 | ' | 280 | 245 | ' |
Net capital expenditures | $10 | ' | $28 | ' | ' |
Information_about_QVCs_Operati5
Information about QVC's Operating Segments (Long-lived Assets by Segment) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | $1,076 | $1,106 | $1,131 |
QVC-U.S. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 436 | 448 | 429 |
QVC-Japan | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 218 | 220 | 280 |
QVC-Germany | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 225 | 244 | 247 |
QVC-U.K. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 129 | 129 | 128 |
QVC-Italy | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | $68 | $65 | $47 |
Information_about_QVCs_Operati6
Information about QVC's Operating Segments (Reconciliation of Adjusted OIBDA to Income before Income Taxes) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Adjusted OIBDA | $439 | $434 | $851 | $838 | $1,841 | $1,828 | $1,733 |
Stock based compensation | -10 | -9 | -18 | -19 | -38 | -34 | -22 |
Depreciation and amortization | -145 | -140 | -289 | -274 | -558 | -526 | -574 |
Equity in losses of investee | -2 | -2 | -3 | -1 | -4 | -4 | -2 |
Gains on financial instruments | 0 | 3 | 0 | 15 | 15 | 48 | 50 |
Interest expense, net | -60 | -50 | -122 | -113 | -214 | -233 | -229 |
Foreign currency gain (loss) | 1 | 0 | 0 | -1 | 1 | 2 | -2 |
Loss on extinguishment of debt | 0 | -16 | 0 | -57 | -57 | 0 | 0 |
Income before income taxes | $223 | $220 | $419 | $388 | $986 | $1,081 | $954 |
Other_Comprehensive_Income_Acc
Other Comprehensive Income (Accumulated Other Comprehensive Income) (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | $139 | $186 | $186 | $194 | $209 |
Other comprehensive loss attributable to QVC, Inc. stockholder | 15 | -88 | -47 | -8 | -15 |
Ending balance | $154 | $98 | $139 | $186 | $194 |
Other_Comprehensive_Income_Com
Other Comprehensive Income (Component of Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Foreign currency transaction and translation gain (loss) before tax | $2 | ($13) | $21 | ($129) | ($64) | ($48) | ($20) |
Tax (expense) benefit from foreign currency translation gain (loss) | 0 | -3 | -3 | 22 | -8 | 21 | 10 |
Foreign currency translation adjustments, net-of-tax | $2 | ($16) | $18 | ($107) | ($72) | ($27) | ($10) |
Subsequent_Events_Details
Subsequent Events (Details) (Liberty, USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Liberty | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Subsequent event dividend to parent | $1,400 | $108 |
GuarantorNonGuarantor_Subsidia2
Guarantor/Non-Guarantor Subsidiary Financial Information (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intercompany gain | $20 | ' | ' | ' | ' | ' | ' |
Subsidiary guarantors ownership percentage | 100.00% | ' | 100.00% | ' | 100.00% | ' | ' |
Net revenue | 2,014 | 1,961 | 4,000 | 3,935 | 8,623 | 8,516 | 8,268 |
Cost of goods sold | 1,250 | 1,227 | 2,506 | 2,479 | 5,465 | 5,419 | 5,278 |
Operating | 180 | 171 | 358 | 344 | 740 | 715 | 744 |
Net cash provided by operating activities | ' | ' | 549 | 442 | 973 | 1,206 | 818 |
Net cash used in investing activities | ' | ' | -65 | -100 | -270 | -344 | -256 |
Net cash used in financing activities | ' | ' | -387 | -437 | -763 | -862 | -627 |
Parent company | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 1,368 | 1,326 | 2,692 | 2,640 | 5,914 | 5,653 | 5,485 |
Cost of goods sold | 850 | 836 | 1,692 | 1,679 | 3,804 | 3,644 | 3,507 |
Operating | 42 | 38 | 82 | 75 | 168 | 140 | 166 |
Net cash provided by operating activities | ' | ' | 217 | 275 | 379 | 462 | 225 |
Net cash used in investing activities | ' | ' | 40 | 229 | 263 | 366 | 271 |
Net cash used in financing activities | ' | ' | -317 | -571 | -639 | -756 | -537 |
Parent company | Adjustment | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | 58 | ' | 112 | ' | 231 | 199 |
Cost of goods sold | ' | ' | ' | 11 | ' | 69 | 73 |
Operating | ' | 9 | ' | 17 | ' | 33 | 25 |
Net cash provided by operating activities | ' | ' | ' | 83 | ' | 156 | 103 |
Net cash used in investing activities | ' | ' | ' | 34 | ' | 101 | 37 |
Net cash used in financing activities | ' | ' | ' | 117 | ' | 55 | 140 |
Non-guarantor subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 692 | 681 | 1,399 | 1,389 | 2,914 | 3,078 | 2,988 |
Cost of goods sold | 432 | 427 | 878 | 871 | 1,831 | 1,941 | 1,906 |
Operating | 89 | 85 | 181 | 176 | 358 | 369 | 377 |
Net cash provided by operating activities | ' | ' | 160 | 52 | 205 | 332 | 213 |
Net cash used in investing activities | ' | ' | 38 | -46 | -101 | -261 | -169 |
Net cash used in financing activities | ' | ' | -70 | -33 | -135 | -85 | -131 |
Non-guarantor subsidiaries | Adjustment | ' | ' | ' | ' | ' | ' | ' |
Net cash used in financing activities | ' | ' | ' | $83 | ' | $152 | $106 |
GuarantorNonGuarantor_Subsidia3
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Financial Position) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||||
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $548 | $457 | $416 | $540 | $560 | $621 |
Restricted cash | 14 | 14 | ' | 15 | ' | ' |
Accounts receivable, net | 756 | 1,111 | ' | 1,055 | ' | ' |
Inventories | 989 | 931 | ' | 909 | ' | ' |
Deferred income taxes | 165 | 162 | ' | 151 | ' | ' |
Prepaid expenses | 57 | 47 | ' | 53 | ' | ' |
Total current assets | 2,529 | 2,722 | ' | 2,723 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 1,076 | 1,106 | ' | 1,131 | ' | ' |
Cable and satellite television distribution rights, net | 540 | 624 | ' | 764 | ' | ' |
Goodwill | 5,210 | 5,197 | ' | 5,234 | 5,239 | ' |
Other intangible assets, net | 3,243 | 3,336 | ' | 3,509 | ' | ' |
Other noncurrent assets | 69 | 71 | ' | 77 | ' | ' |
Investments in subsidiaries | 0 | 0 | ' | 0 | ' | ' |
Total assets | 12,667 | 13,056 | ' | 13,438 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 11 | 13 | ' | 12 | ' | ' |
Accounts payable-trade | 470 | 425 | ' | 566 | ' | ' |
Accrued liabilities | 743 | 1,029 | ' | 955 | ' | ' |
Intercompany accounts payable (receivable) | 0 | 0 | ' | 0 | ' | ' |
Total current liabilities | 1,224 | 1,467 | ' | 1,533 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 3,937 | 3,800 | ' | 3,465 | ' | ' |
Deferred compensation | 14 | 14 | ' | 12 | ' | ' |
Deferred income taxes | 1,223 | 1,326 | ' | 1,410 | ' | ' |
Other long-term liabilities | 157 | 108 | ' | 184 | ' | ' |
Total liabilities | 6,555 | 6,715 | ' | 6,604 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' | ' | ' |
QVC, Inc. stockholder's equity | 5,996 | 6,222 | ' | 6,690 | ' | ' |
Noncontrolling interest | 116 | 119 | ' | 144 | ' | ' |
Total equity | 6,112 | 6,341 | ' | 6,834 | 8,019 | 7,654 |
Total liabilities and equity | 12,667 | 13,056 | ' | 13,438 | ' | ' |
Parent company | ' | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 18 | 78 | 8 | 75 | 3 | 44 |
Restricted cash | 11 | 11 | ' | 13 | ' | ' |
Accounts receivable, net | 490 | 816 | ' | 747 | ' | ' |
Inventories | 725 | 684 | ' | 691 | ' | ' |
Deferred income taxes | 147 | 146 | ' | 131 | ' | ' |
Prepaid expenses | 28 | 20 | ' | 19 | ' | ' |
Total current assets | 1,419 | 1,755 | ' | 1,676 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 253 | 265 | ' | 247 | ' | ' |
Cable and satellite television distribution rights, net | 0 | 0 | ' | 0 | ' | ' |
Goodwill | 4,169 | 4,169 | ' | 4,169 | ' | ' |
Other intangible assets, net | 1,092 | 1,128 | ' | 1,280 | ' | ' |
Other noncurrent assets | 9 | 8 | ' | 14 | ' | ' |
Investments in subsidiaries | 4,893 | 4,894 | ' | 4,844 | ' | ' |
Total assets | 11,835 | 12,219 | ' | 12,230 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 2 | 2 | ' | 2 | ' | ' |
Accounts payable-trade | 275 | 266 | ' | 324 | ' | ' |
Accrued liabilities | 150 | 463 | ' | 402 | ' | ' |
Intercompany accounts payable (receivable) | 1,084 | 1,019 | ' | 829 | ' | ' |
Total current liabilities | 1,511 | 1,750 | ' | 1,557 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 3,886 | 3,745 | ' | 3,404 | ' | ' |
Deferred compensation | 14 | 13 | ' | 11 | ' | ' |
Deferred income taxes | 319 | 399 | ' | 431 | ' | ' |
Other long-term liabilities | 109 | 90 | ' | 137 | ' | ' |
Total liabilities | 5,839 | 5,997 | ' | 5,540 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' | ' | ' |
QVC, Inc. stockholder's equity | 5,996 | 6,222 | ' | 6,690 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | 0 | ' | ' |
Total equity | 5,996 | 6,222 | ' | 6,690 | 7,890 | ' |
Total liabilities and equity | 11,835 | 12,219 | ' | 12,230 | ' | ' |
Guarantor subsidiaries | ' | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 162 | 133 | 164 | 165 | 223 | 160 |
Restricted cash | 0 | 0 | ' | 0 | ' | ' |
Accounts receivable, net | 0 | 0 | ' | 0 | ' | ' |
Inventories | 0 | 0 | ' | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | 0 | ' | ' |
Prepaid expenses | 0 | 0 | ' | 0 | ' | ' |
Total current assets | 162 | 133 | ' | 165 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 66 | 67 | ' | 67 | ' | ' |
Cable and satellite television distribution rights, net | 441 | 510 | ' | 618 | ' | ' |
Goodwill | 0 | 0 | ' | 0 | ' | ' |
Other intangible assets, net | 2,049 | 2,050 | ' | 2,049 | ' | ' |
Other noncurrent assets | 0 | 0 | ' | 0 | ' | ' |
Investments in subsidiaries | 1,601 | 1,628 | ' | 1,838 | ' | ' |
Total assets | 4,319 | 4,388 | ' | 4,737 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 0 | 0 | ' | 0 | ' | ' |
Accounts payable-trade | 0 | 0 | ' | 0 | ' | ' |
Accrued liabilities | 86 | 96 | ' | 106 | ' | ' |
Intercompany accounts payable (receivable) | -814 | -879 | ' | -816 | ' | ' |
Total current liabilities | -728 | -783 | ' | -710 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 0 | 0 | ' | 0 | ' | ' |
Deferred compensation | 0 | 0 | ' | 0 | ' | ' |
Deferred income taxes | 901 | 923 | ' | 964 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | 17 | ' | ' |
Total liabilities | 173 | 140 | ' | 271 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' | ' | ' |
QVC, Inc. stockholder's equity | 4,146 | 4,248 | ' | 4,466 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | 0 | ' | ' |
Total equity | 4,146 | 4,248 | ' | 4,466 | 3,915 | ' |
Total liabilities and equity | 4,319 | 4,388 | ' | 4,737 | ' | ' |
Non-guarantor subsidiaries | ' | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 368 | 246 | 244 | 300 | 334 | 417 |
Restricted cash | 3 | 3 | ' | 2 | ' | ' |
Accounts receivable, net | 266 | 295 | ' | 308 | ' | ' |
Inventories | 264 | 247 | ' | 218 | ' | ' |
Deferred income taxes | 18 | 16 | ' | 20 | ' | ' |
Prepaid expenses | 29 | 27 | ' | 34 | ' | ' |
Total current assets | 948 | 834 | ' | 882 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 757 | 774 | ' | 817 | ' | ' |
Cable and satellite television distribution rights, net | 99 | 114 | ' | 146 | ' | ' |
Goodwill | 1,041 | 1,028 | ' | 1,065 | ' | ' |
Other intangible assets, net | 102 | 158 | ' | 180 | ' | ' |
Other noncurrent assets | 60 | 63 | ' | 63 | ' | ' |
Investments in subsidiaries | 0 | 0 | ' | 0 | ' | ' |
Total assets | 3,007 | 2,971 | ' | 3,153 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 9 | 11 | ' | 10 | ' | ' |
Accounts payable-trade | 195 | 159 | ' | 242 | ' | ' |
Accrued liabilities | 507 | 470 | ' | 447 | ' | ' |
Intercompany accounts payable (receivable) | -270 | -140 | ' | -13 | ' | ' |
Total current liabilities | 441 | 500 | ' | 686 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 51 | 55 | ' | 61 | ' | ' |
Deferred compensation | 0 | 1 | ' | 1 | ' | ' |
Deferred income taxes | 3 | 4 | ' | 15 | ' | ' |
Other long-term liabilities | 48 | 18 | ' | 30 | ' | ' |
Total liabilities | 543 | 578 | ' | 793 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' | ' | ' |
QVC, Inc. stockholder's equity | 2,348 | 2,274 | ' | 2,216 | ' | ' |
Noncontrolling interest | 116 | 119 | ' | 144 | ' | ' |
Total equity | 2,464 | 2,393 | ' | 2,360 | 2,181 | ' |
Total liabilities and equity | 3,007 | 2,971 | ' | 3,153 | ' | ' |
Eliminations | ' | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ' | 0 | ' | ' |
Accounts receivable, net | 0 | 0 | ' | 0 | ' | ' |
Inventories | 0 | 0 | ' | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | 0 | ' | ' |
Prepaid expenses | 0 | 0 | ' | 0 | ' | ' |
Total current assets | 0 | 0 | ' | 0 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 0 | 0 | ' | 0 | ' | ' |
Cable and satellite television distribution rights, net | 0 | 0 | ' | 0 | ' | ' |
Goodwill | 0 | 0 | ' | 0 | ' | ' |
Other intangible assets, net | 0 | 0 | ' | 0 | ' | ' |
Other noncurrent assets | 0 | 0 | ' | 0 | ' | ' |
Investments in subsidiaries | -6,494 | -6,522 | ' | -6,682 | ' | ' |
Total assets | -6,494 | -6,522 | ' | -6,682 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 0 | 0 | ' | 0 | ' | ' |
Accounts payable-trade | 0 | 0 | ' | 0 | ' | ' |
Accrued liabilities | 0 | 0 | ' | 0 | ' | ' |
Intercompany accounts payable (receivable) | 0 | 0 | ' | 0 | ' | ' |
Total current liabilities | 0 | 0 | ' | 0 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 0 | 0 | ' | 0 | ' | ' |
Deferred compensation | 0 | 0 | ' | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | 0 | ' | ' |
Total liabilities | 0 | 0 | ' | 0 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' | ' | ' |
QVC, Inc. stockholder's equity | -6,494 | -6,522 | ' | -6,682 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | 0 | ' | ' |
Total equity | -6,494 | -6,522 | ' | -6,682 | -5,967 | ' |
Total liabilities and equity | ($6,494) | ($6,522) | ' | ($6,682) | ' | ' |
GuarantorNonGuarantor_Subsidia4
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Operations) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $2,014 | $1,961 | $4,000 | $3,935 | $8,623 | $8,516 | $8,268 |
Cost of goods sold | 1,250 | 1,227 | 2,506 | 2,479 | 5,465 | 5,419 | 5,278 |
Gross profit | 764 | 734 | 1,494 | 1,456 | 3,158 | 3,097 | 2,990 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 180 | 171 | 358 | 344 | 740 | 715 | 744 |
Selling, general and administrative, including stock-based compensation | 155 | 138 | 303 | 293 | 615 | 588 | 535 |
Depreciation | 33 | 33 | 66 | 63 | 127 | 126 | 135 |
Amortization | 112 | 107 | 223 | 211 | 431 | 400 | 439 |
Intercompany management expense (income) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operating expenses | 480 | 449 | 950 | 911 | 1,913 | 1,829 | 1,853 |
Operating income | 284 | 285 | 544 | 545 | 1,245 | 1,268 | 1,137 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | -2 | -2 | -3 | -1 | -4 | -4 | -2 |
Gains on financial instruments | 0 | 3 | 0 | 15 | 15 | 48 | 50 |
Interest expense, net | -60 | -50 | -122 | -113 | -214 | -233 | -229 |
Foreign currency gain (loss) | 1 | 0 | 0 | -1 | 1 | 2 | -2 |
Loss on extinguishment of debt | 0 | -16 | 0 | -57 | -57 | 0 | 0 |
Intercompany interest and other (expense) income | 0 | 0 | 0 | 0 | ' | ' | ' |
Nonoperating income (expense) | -61 | -65 | -125 | -157 | -259 | -187 | -183 |
Income before income taxes | 223 | 220 | 419 | 388 | 986 | 1,081 | 954 |
Income tax expense | -83 | -81 | -157 | -143 | -353 | -394 | -342 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net income | 140 | 139 | 262 | 245 | 633 | 687 | 612 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 | -45 | -63 | -52 |
Net income attributable to QVC, Inc. stockholder | 130 | 126 | 243 | 220 | 588 | 624 | 560 |
Parent company | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 1,368 | 1,326 | 2,692 | 2,640 | 5,914 | 5,653 | 5,485 |
Cost of goods sold | 850 | 836 | 1,692 | 1,679 | 3,804 | 3,644 | 3,507 |
Gross profit | 518 | 490 | 1,000 | 961 | 2,110 | 2,009 | 1,978 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 42 | 38 | 82 | 75 | 168 | 140 | 166 |
Selling, general and administrative, including stock-based compensation | 243 | 227 | 466 | 463 | 1,028 | 1,002 | 947 |
Depreciation | 10 | 9 | 19 | 19 | 38 | 35 | 36 |
Amortization | 58 | 51 | 110 | 102 | 204 | 204 | 242 |
Intercompany management expense (income) | 20 | 15 | 40 | 32 | 50 | 60 | 89 |
Operating expenses | 373 | 340 | 717 | 691 | 1,488 | 1,441 | 1,480 |
Operating income | 145 | 150 | 283 | 270 | 622 | 568 | 498 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Gains on financial instruments | ' | 0 | ' | 12 | 12 | 48 | 50 |
Interest expense, net | -60 | -50 | -113 | -112 | -214 | -233 | -230 |
Foreign currency gain (loss) | -1 | -1 | -3 | -2 | -13 | -10 | -3 |
Loss on extinguishment of debt | ' | -16 | ' | -57 | -57 | ' | ' |
Intercompany interest and other (expense) income | -5 | -4 | -10 | -7 | ' | ' | ' |
Nonoperating income (expense) | -66 | -71 | -126 | -166 | -288 | -208 | -192 |
Income before income taxes | 79 | 79 | 157 | 104 | 334 | 360 | 306 |
Income tax expense | -27 | -21 | -7 | -32 | -119 | -116 | -110 |
Equity in earnings of subsidiaries, net of tax | 88 | 81 | 112 | 173 | 418 | 443 | 416 |
Net income | 140 | 139 | 262 | 245 | 633 | 687 | 612 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 | -45 | -63 | -52 |
Net income attributable to QVC, Inc. stockholder | 130 | 126 | 243 | 220 | 588 | 624 | 560 |
Guarantor subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 187 | 182 | 364 | 365 | 841 | 819 | 790 |
Cost of goods sold | 23 | 23 | 48 | 49 | 107 | 116 | 120 |
Gross profit | 164 | 159 | 316 | 316 | 734 | 703 | 670 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 49 | 48 | 95 | 93 | 214 | 206 | 201 |
Selling, general and administrative, including stock-based compensation | 1 | 0 | -1 | 0 | 0 | 1 | 0 |
Depreciation | 1 | 2 | 3 | 3 | 6 | 4 | 4 |
Amortization | 38 | 36 | 77 | 70 | 146 | 130 | 133 |
Intercompany management expense (income) | -5 | -4 | -8 | -7 | 1 | -14 | -27 |
Operating expenses | 84 | 82 | 166 | 159 | 367 | 327 | 311 |
Operating income | 80 | 77 | 150 | 157 | 367 | 376 | 359 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Gains on financial instruments | ' | 0 | ' | 0 | 0 | 0 | 0 |
Interest expense, net | 0 | -1 | 0 | -1 | 0 | 0 | 0 |
Foreign currency gain (loss) | 0 | 0 | 0 | -1 | 0 | 4 | -2 |
Loss on extinguishment of debt | ' | 0 | ' | 0 | 0 | ' | ' |
Intercompany interest and other (expense) income | 13 | 12 | 26 | 25 | ' | ' | ' |
Nonoperating income (expense) | 13 | 11 | 26 | 23 | 51 | 55 | 51 |
Income before income taxes | 93 | 88 | 176 | 180 | 418 | 431 | 410 |
Income tax expense | -28 | -32 | -52 | -60 | -132 | -141 | -124 |
Equity in earnings of subsidiaries, net of tax | 29 | 11 | -19 | 26 | 67 | 93 | 70 |
Net income | 94 | 67 | 105 | 146 | 353 | 383 | 356 |
Less net income attributable to the noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net income attributable to QVC, Inc. stockholder | 94 | 67 | 105 | 146 | 353 | 383 | 356 |
Non-guarantor subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 692 | 681 | 1,399 | 1,389 | 2,914 | 3,078 | 2,988 |
Cost of goods sold | 432 | 427 | 878 | 871 | 1,831 | 1,941 | 1,906 |
Gross profit | 260 | 254 | 521 | 518 | 1,083 | 1,137 | 1,082 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 89 | 85 | 181 | 176 | 358 | 369 | 377 |
Selling, general and administrative, including stock-based compensation | 89 | 80 | 181 | 169 | 356 | 337 | 328 |
Depreciation | 22 | 22 | 44 | 41 | 83 | 87 | 95 |
Amortization | 16 | 20 | 36 | 39 | 81 | 66 | 64 |
Intercompany management expense (income) | -15 | -11 | -32 | -25 | -51 | -46 | -62 |
Operating expenses | 201 | 196 | 410 | 400 | 827 | 813 | 802 |
Operating income | 59 | 58 | 111 | 118 | 256 | 324 | 280 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | -2 | -2 | -3 | -1 | -4 | -4 | -2 |
Gains on financial instruments | ' | 3 | ' | 3 | 3 | 0 | 0 |
Interest expense, net | 0 | 1 | -9 | 0 | 0 | 0 | 1 |
Foreign currency gain (loss) | 2 | 1 | 3 | 2 | 14 | 8 | 3 |
Loss on extinguishment of debt | ' | 0 | ' | 0 | 0 | ' | ' |
Intercompany interest and other (expense) income | 12 | -8 | 4 | -18 | ' | ' | ' |
Nonoperating income (expense) | 12 | -5 | -5 | -14 | -22 | -34 | -42 |
Income before income taxes | 71 | 53 | 106 | 104 | 234 | 290 | 238 |
Income tax expense | -28 | -28 | -98 | -51 | -102 | -137 | -108 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net income | 43 | 25 | 8 | 53 | 132 | 153 | 130 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 | -45 | -63 | -52 |
Net income attributable to QVC, Inc. stockholder | 33 | 12 | -11 | 28 | 87 | 90 | 78 |
Eliminations | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | -233 | -228 | -455 | -459 | -1,046 | -1,034 | -995 |
Cost of goods sold | -55 | -59 | -112 | -120 | -277 | -282 | -255 |
Gross profit | -178 | -169 | -343 | -339 | -769 | -752 | -740 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Selling, general and administrative, including stock-based compensation | -178 | -169 | -343 | -339 | -769 | -752 | -740 |
Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Intercompany management expense (income) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operating expenses | -178 | -169 | -343 | -339 | -769 | -752 | -740 |
Operating income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Gains on financial instruments | ' | 0 | ' | 0 | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Foreign currency gain (loss) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Loss on extinguishment of debt | ' | 0 | ' | 0 | 0 | ' | ' |
Intercompany interest and other (expense) income | -20 | 0 | -20 | 0 | ' | ' | ' |
Nonoperating income (expense) | -20 | 0 | -20 | 0 | 0 | 0 | 0 |
Income before income taxes | -20 | 0 | -20 | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | -117 | -92 | -93 | -199 | -485 | -536 | -486 |
Net income | -137 | -92 | -113 | -199 | -485 | -536 | -486 |
Less net income attributable to the noncontrolling interest | 10 | 13 | 19 | 25 | 45 | 63 | 52 |
Net income attributable to QVC, Inc. stockholder | ($127) | ($79) | ($94) | ($174) | ($440) | ($473) | ($434) |
GuarantorNonGuarantor_Subsidia5
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net income | $140 | $139 | $262 | $245 | $633 | $687 | $612 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 | -72 | -27 | -10 |
Total comprehensive income (loss) | 142 | 123 | 280 | 138 | 561 | 660 | 602 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 | -20 | -44 | -57 |
Comprehensive income attributable to QVC, Inc. stockholder | 132 | 116 | 258 | 132 | 541 | 616 | 545 |
Parent company | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net income | 140 | 139 | 262 | 245 | 633 | 687 | 612 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 | -72 | -27 | -10 |
Total comprehensive income (loss) | 142 | 123 | 280 | 138 | 561 | 660 | 602 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 | -20 | -44 | -57 |
Comprehensive income attributable to QVC, Inc. stockholder | 132 | 116 | 258 | 132 | 541 | 616 | 545 |
Guarantor subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net income | 94 | 67 | 105 | 146 | 353 | 383 | 356 |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) | 94 | 67 | 105 | 146 | 353 | 383 | 356 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Comprehensive income attributable to QVC, Inc. stockholder | 94 | 67 | 105 | 146 | 353 | 383 | 356 |
Non-guarantor subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net income | 43 | 25 | 8 | 53 | 132 | 153 | 130 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 | -72 | -27 | -10 |
Total comprehensive income (loss) | 45 | 9 | 26 | -54 | 60 | 126 | 120 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 | -20 | -44 | -57 |
Comprehensive income attributable to QVC, Inc. stockholder | 35 | 2 | 4 | -60 | 40 | 82 | 63 |
Eliminations | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net income | -137 | -92 | -113 | -199 | -485 | -536 | -486 |
Foreign currency translation adjustments | -2 | 16 | -18 | 107 | 72 | 27 | 10 |
Total comprehensive income (loss) | -139 | -76 | -131 | -92 | -413 | -509 | -476 |
Comprehensive income attributable to noncontrolling interest | 10 | 7 | 22 | 6 | 20 | 44 | 57 |
Comprehensive income attributable to QVC, Inc. stockholder | ($129) | ($69) | ($109) | ($86) | ($393) | ($465) | ($419) |
GuarantorNonGuarantor_Subsidia6
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Cash Flow) (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net cash provided by operating activities | $549 | $442 | $973 | $1,206 | $818 |
Investing activities: | ' | ' | ' | ' | ' |
Capital expenditures, net | -57 | -75 | -211 | -246 | -259 |
Expenditures for cable and satellite television distribution rights, net | -8 | -26 | -58 | -2 | -2 |
Changes in other noncurrent assets | 0 | 1 | -2 | -3 | 4 |
Intercompany investing activities | 0 | 0 | 0 | 0 | 0 |
Net cash used in investing activities | -65 | -100 | -270 | -344 | -256 |
Financing activities: | ' | ' | ' | ' | ' |
Principal payments of debt and capital lease obligations | -1,419 | -1,695 | -2,387 | -1,246 | -837 |
Principal borrowings of debt from senior secured credit facility | 554 | 1,053 | 1,674 | 1,717 | 465 |
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | 1,050 | 1,050 | 500 | 0 |
Payment of debt origination fees | -12 | -16 | -16 | -7 | 0 |
Payment of bond premium fees | 0 | -46 | -46 | 0 | 0 |
Other financing activities | -4 | 7 | 12 | 20 | 0 |
Dividends paid to Liberty | -480 | -765 | -1,005 | -1,817 | -205 |
Dividends paid to noncontrolling interest | -25 | -25 | -45 | -29 | -50 |
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | 0 | 0 | 0 |
Intercompany financing activities | 0 | 0 | 0 | 0 | 0 |
Net cash used in financing activities | -387 | -437 | -763 | -862 | -627 |
Effect of foreign exchange rate changes on cash and cash equivalents | -6 | -29 | -23 | -20 | 4 |
Net increase (decrease) in cash and cash equivalents | 91 | -124 | -83 | -20 | -61 |
Cash and cash equivalents, beginning of period | 457 | 540 | 540 | 560 | 621 |
Cash and cash equivalents, end of period | 548 | 416 | 457 | 540 | 560 |
Parent company | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net cash provided by operating activities | 217 | 275 | 379 | 462 | 225 |
Investing activities: | ' | ' | ' | ' | ' |
Capital expenditures, net | -74 | -33 | -106 | -76 | -83 |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 | 0 | 0 | 0 |
Changes in other noncurrent assets | ' | 4 | -1 | -3 | 5 |
Intercompany investing activities | 114 | 258 | 368 | 443 | 348 |
Net cash used in investing activities | 40 | 229 | 263 | 366 | 271 |
Financing activities: | ' | ' | ' | ' | ' |
Principal payments of debt and capital lease obligations | -1,414 | -1,690 | -2,375 | -1,237 | -825 |
Principal borrowings of debt from senior secured credit facility | 554 | 1,053 | 1,674 | 1,717 | 465 |
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | 1,050 | 1,050 | 500 | ' |
Payment of debt origination fees | -12 | -16 | -16 | -7 | ' |
Payment of bond premium fees | ' | -46 | -46 | ' | ' |
Other financing activities | -4 | 7 | 12 | 20 | ' |
Dividends paid to Liberty | -480 | -765 | -1,005 | -1,817 | -205 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 |
Net short-term intercompany debt borrowings (repayments) | 65 | -21 | 190 | 214 | 104 |
Intercompany financing activities | -25 | -143 | -123 | -146 | -76 |
Net cash used in financing activities | -317 | -571 | -639 | -756 | -537 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | -60 | -67 | 3 | 72 | -41 |
Cash and cash equivalents, beginning of period | 78 | 75 | 75 | 3 | 44 |
Cash and cash equivalents, end of period | 18 | 8 | 78 | 75 | 3 |
Guarantor subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net cash provided by operating activities | 172 | 115 | 389 | 412 | 380 |
Investing activities: | ' | ' | ' | ' | ' |
Capital expenditures, net | -1 | 0 | -8 | -5 | -8 |
Expenditures for cable and satellite television distribution rights, net | -8 | -25 | -56 | -1 | -2 |
Changes in other noncurrent assets | ' | 0 | 0 | 0 | 0 |
Intercompany investing activities | 27 | 149 | 277 | 265 | 190 |
Net cash used in investing activities | 18 | 124 | 213 | 259 | 180 |
Financing activities: | ' | ' | ' | ' | ' |
Principal payments of debt and capital lease obligations | 0 | 0 | 0 | 0 | 0 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | 0 | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | 0 | 0 | ' |
Payment of debt origination fees | 0 | 0 | 0 | 0 | ' |
Payment of bond premium fees | ' | 0 | 0 | ' | ' |
Other financing activities | 0 | 0 | 0 | 0 | ' |
Dividends paid to Liberty | 0 | 0 | 0 | 0 | 0 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 |
Net short-term intercompany debt borrowings (repayments) | 65 | 86 | -63 | -59 | 2 |
Intercompany financing activities | -226 | -326 | -571 | -670 | -499 |
Net cash used in financing activities | -161 | -240 | -634 | -729 | -497 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 29 | -1 | -32 | -58 | 63 |
Cash and cash equivalents, beginning of period | 133 | 165 | 165 | 223 | 160 |
Cash and cash equivalents, end of period | 162 | 164 | 133 | 165 | 223 |
Non-guarantor subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net cash provided by operating activities | 160 | 52 | 205 | 332 | 213 |
Investing activities: | ' | ' | ' | ' | ' |
Capital expenditures, net | 38 | -42 | -97 | -165 | -168 |
Expenditures for cable and satellite television distribution rights, net | 0 | -1 | -2 | -1 | 0 |
Changes in other noncurrent assets | ' | -3 | -1 | 0 | -1 |
Intercompany investing activities | 0 | 0 | 0 | 0 | 0 |
Net cash used in investing activities | 38 | -46 | -101 | -261 | -169 |
Financing activities: | ' | ' | ' | ' | ' |
Principal payments of debt and capital lease obligations | -5 | -5 | -12 | -9 | -12 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | 0 | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | 0 | 0 | ' |
Payment of debt origination fees | 0 | 0 | 0 | 0 | ' |
Payment of bond premium fees | ' | 0 | 0 | ' | ' |
Other financing activities | 0 | 0 | 0 | 0 | ' |
Dividends paid to Liberty | 0 | 0 | 0 | 0 | 0 |
Dividends paid to noncontrolling interest | -25 | -25 | -45 | -29 | -50 |
Net short-term intercompany debt borrowings (repayments) | -130 | -65 | -127 | -155 | -106 |
Intercompany financing activities | 90 | 62 | 49 | 108 | 37 |
Net cash used in financing activities | -70 | -33 | -135 | -85 | -131 |
Effect of foreign exchange rate changes on cash and cash equivalents | -6 | -29 | -23 | -20 | 4 |
Net increase (decrease) in cash and cash equivalents | 122 | -56 | -54 | -34 | -83 |
Cash and cash equivalents, beginning of period | 246 | 300 | 300 | 334 | 417 |
Cash and cash equivalents, end of period | 368 | 244 | 246 | 300 | 334 |
Eliminations | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net cash provided by operating activities | 0 | 0 | 0 | 0 | 0 |
Investing activities: | ' | ' | ' | ' | ' |
Capital expenditures, net | -20 | 0 | 0 | 0 | 0 |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 | 0 | 0 | 0 |
Changes in other noncurrent assets | ' | 0 | 0 | 0 | 0 |
Intercompany investing activities | -141 | -407 | -645 | -708 | -538 |
Net cash used in investing activities | -161 | -407 | -645 | -708 | -538 |
Financing activities: | ' | ' | ' | ' | ' |
Principal payments of debt and capital lease obligations | 0 | 0 | 0 | 0 | 0 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | 0 | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | 0 | 0 | ' |
Payment of debt origination fees | 0 | 0 | 0 | 0 | ' |
Payment of bond premium fees | ' | 0 | 0 | ' | ' |
Other financing activities | 0 | 0 | 0 | 0 | ' |
Dividends paid to Liberty | 0 | 0 | 0 | 0 | 0 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 |
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | 0 | 0 | 0 |
Intercompany financing activities | 161 | 407 | 645 | 708 | 538 |
Net cash used in financing activities | 161 | 407 | 645 | 708 | 538 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 | $0 | $0 | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||||
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $548 | $457 | $416 | $540 | $560 | $621 |
Restricted cash | 14 | 14 | ' | 15 | ' | ' |
Accounts receivable, less allowance for doubtful accounts of $85 million at June 30, 2014 and $83 million at December 31, 2013 | 756 | 1,111 | ' | 1,055 | ' | ' |
Inventories | 989 | 931 | ' | 909 | ' | ' |
Deferred income taxes | 165 | 162 | ' | 151 | ' | ' |
Prepaid expenses | 57 | 47 | ' | 53 | ' | ' |
Total current assets | 2,529 | 2,722 | ' | 2,723 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' | ' | ' |
Property and equipment, net of accumulated depreciation of $989 million at June 30, 2014 and $919 million at December 31, 2013 | 1,076 | 1,106 | ' | 1,131 | ' | ' |
Cable and satellite television distribution rights, net | 540 | 624 | ' | 764 | ' | ' |
Goodwill | 5,210 | 5,197 | ' | 5,234 | 5,239 | ' |
Other intangible assets, net | 3,243 | 3,336 | ' | 3,509 | ' | ' |
Other noncurrent assets | 69 | 71 | ' | 77 | ' | ' |
Total assets | 12,667 | 13,056 | ' | 13,438 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 11 | 13 | ' | 12 | ' | ' |
Accounts payable-trade | 470 | 425 | ' | 566 | ' | ' |
Accrued liabilities | 743 | 1,029 | ' | 955 | ' | ' |
Total current liabilities | 1,224 | 1,467 | ' | 1,533 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 3,937 | 3,800 | ' | 3,465 | ' | ' |
Deferred compensation | 14 | 14 | ' | 12 | ' | ' |
Deferred income taxes | 1,223 | 1,326 | ' | 1,410 | ' | ' |
Other long-term liabilities | 157 | 108 | ' | 184 | ' | ' |
Total liabilities | 6,555 | 6,715 | ' | 6,604 | ' | ' |
QVC, Inc. shareholder's equity: | ' | ' | ' | ' | ' | ' |
Common stock, $0.01 par value | 0 | 0 | ' | 0 | ' | ' |
Additional paid-in capital | 6,724 | 6,703 | ' | 6,665 | ' | ' |
Accumulated deficit | -882 | -620 | ' | -161 | ' | ' |
Accumulated other comprehensive income | 154 | 139 | 98 | 186 | 194 | 209 |
Total QVC, Inc. stockholder's equity | 5,996 | 6,222 | ' | 6,690 | ' | ' |
Noncontrolling interest | 116 | 119 | ' | 144 | ' | ' |
Total equity | 6,112 | 6,341 | ' | 6,834 | 8,019 | 7,654 |
Total liabilities and equity | $12,667 | $13,056 | ' | $13,438 | ' | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | ' | ' | ' |
Allowance for D/A | $85 | $83 | $74 |
Accumulated depreciation | $989 | $919 | $867 |
Common stock par value | $0.01 | $0.01 | $0.01 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $2,014 | $1,961 | $4,000 | $3,935 | $8,623 | $8,516 | $8,268 |
Cost of goods sold | 1,250 | 1,227 | 2,506 | 2,479 | 5,465 | 5,419 | 5,278 |
Gross profit | 764 | 734 | 1,494 | 1,456 | 3,158 | 3,097 | 2,990 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 180 | 171 | 358 | 344 | 740 | 715 | 744 |
Selling, general and administrative, including stock-based compensation | 155 | 138 | 303 | 293 | 615 | 588 | 535 |
Depreciation | 33 | 33 | 66 | 63 | 127 | 126 | 135 |
Amortization of intangible assets | 112 | 107 | 223 | 211 | 431 | 400 | 439 |
Operating expenses | 480 | 449 | 950 | 911 | 1,913 | 1,829 | 1,853 |
Operating income | 284 | 285 | 544 | 545 | 1,245 | 1,268 | 1,137 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | -2 | -2 | -3 | -1 | -4 | -4 | -2 |
Gains on financial instruments | 0 | 3 | 0 | 15 | 15 | 48 | 50 |
Interest expense, net | -60 | -50 | -122 | -113 | -214 | -233 | -229 |
Foreign currency gain (loss) | 1 | 0 | 0 | -1 | 1 | 2 | -2 |
Loss on extinguishment of debt | 0 | -16 | 0 | -57 | -57 | 0 | 0 |
Nonoperating income (expense) | -61 | -65 | -125 | -157 | -259 | -187 | -183 |
Income before income taxes | 223 | 220 | 419 | 388 | 986 | 1,081 | 954 |
Income tax expense | -83 | -81 | -157 | -143 | -353 | -394 | -342 |
Net income | 140 | 139 | 262 | 245 | 633 | 687 | 612 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 | -45 | -63 | -52 |
Net income attributable to QVC, Inc. stockholder | $130 | $126 | $243 | $220 | $588 | $624 | $560 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income Statement (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Net income | $140 | $139 | $262 | $245 | $633 | $687 | $612 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 | -72 | -27 | -10 |
Total comprehensive income | 142 | 123 | 280 | 138 | 561 | 660 | 602 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 | -20 | -44 | -57 |
Comprehensive income attributable to QVC, Inc. stockholder | $132 | $116 | $258 | $132 | $541 | $616 | $545 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Cash Flows [Abstract] | ' | ' | ' |
Net income | $633 | $687 | $612 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Equity in losses of investee | 4 | 4 | 2 |
Deferred income taxes | -108 | -134 | -116 |
Foreign currency (gain) loss | -1 | -2 | 2 |
Depreciation | 127 | 126 | 135 |
Amortization of intangible assets | 431 | 400 | 439 |
Change in fair value of financial instruments and noncash interest | -6 | -39 | -42 |
Loss on extinguishment of debt | 57 | 0 | 0 |
Stock-based compensation | 38 | 34 | 22 |
Change in other long-term liabilities | 3 | 2 | -1 |
Effects of changes in working capital items | -205 | 128 | -235 |
Net cash provided by operating activities | 973 | 1,206 | 818 |
Investing activities: | ' | ' | ' |
Capital expenditures, net | -211 | -246 | -259 |
Expenditures for cable and satellite television distribution rights, net | -58 | -2 | -2 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | 0 | -95 | 0 |
Decrease in restricted cash | 1 | 2 | 1 |
Changes in other noncurrent assets | -2 | -3 | 4 |
Net cash used in investing activities | -270 | -344 | -256 |
Financing activities: | ' | ' | ' |
Principal payments of debt and capital lease obligations | -2,387 | -1,246 | -837 |
Principal borrowings of debt from senior secured credit facility | 1,674 | 1,717 | 465 |
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | 500 | 0 |
Payment of debt origination fees | -16 | -7 | 0 |
Payment of bond premium fees | -46 | 0 | 0 |
Other financing activities | 12 | 20 | 0 |
Dividends paid to Liberty | -1,005 | -1,817 | -205 |
Dividends paid to noncontrolling interest | -45 | -29 | -50 |
Net cash used in financing activities | -763 | -862 | -627 |
Effect of foreign exchange rate changes on cash and cash equivalents | -23 | -20 | 4 |
Net increase (decrease) in cash and cash equivalents | -83 | -20 | -61 |
Cash and cash equivalents, beginning of period | 540 | 560 | 621 |
Cash and cash equivalents, end of period | 457 | 540 | 560 |
Effects of changes in working capital items: | ' | ' | ' |
Increase in accounts receivable | -63 | -50 | -167 |
(Increase) decrease in inventories | -14 | 2 | 29 |
(Increase) decrease in prepaid expenses | -1 | 3 | -1 |
(Decrease) increase in accounts payable trade | -134 | 88 | -29 |
Increase (decrease) in accrued liabilities and other | 7 | 85 | -67 |
Effects of changes in working capital items | -205 | 128 | -235 |
Supplemental cash flow information: | ' | ' | ' |
Cash paid for taxes-to Liberty | 385 | 338 | 358 |
Cash paid for taxes-other | 156 | 128 | 145 |
Cash paid for interest | $206 | $215 | $231 |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (USD $) | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income | Noncontrolling interest |
Balance, December 31, 2013 at Dec. 31, 2010 | $7,654,000,000 | $0 | $6,613,000,000 | $710,000,000 | $209,000,000 | $122,000,000 |
Balance, January 1, 2014 (in shares) at Dec. 31, 2010 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 612,000,000 | ' | 0 | 560,000,000 | 0 | 52,000,000 |
Other comprehensive (expense) income: | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -10,000,000 | ' | 0 | 0 | -15,000,000 | 5,000,000 |
Dividends paid to Liberty and noncontrolling interest | -267,000,000 | ' | 1,000,000 | -218,000,000 | 0 | -50,000,000 |
Tax benefit resulting from exercise of employee stock options | 8,000,000 | ' | 8,000,000 | 0 | 0 | 0 |
Stock based compensation | 22,000,000 | ' | 22,000,000 | 0 | 0 | 0 |
Balance, June 30, 2014 at Dec. 31, 2011 | 8,019,000,000 | 0 | 6,644,000,000 | 1,052,000,000 | 194,000,000 | 129,000,000 |
Balance, June 30, 2014 (in shares) at Dec. 31, 2011 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 687,000,000 | ' | 0 | 624,000,000 | 0 | 63,000,000 |
Other comprehensive (expense) income: | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -27,000,000 | ' | 0 | 0 | -8,000,000 | -19,000,000 |
Dividends paid to Liberty and noncontrolling interest | -1,899,000,000 | ' | -33,000,000 | -1,837,000,000 | 0 | -29,000,000 |
Tax benefit resulting from exercise of employee stock options | 20,000,000 | ' | 20,000,000 | 0 | 0 | 0 |
Stock based compensation | 34,000,000 | ' | 34,000,000 | 0 | 0 | 0 |
Balance, June 30, 2014 at Dec. 31, 2012 | 6,834,000,000 | 0 | 6,665,000,000 | -161,000,000 | 186,000,000 | 144,000,000 |
Balance, June 30, 2014 (in shares) at Dec. 31, 2012 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 633,000,000 | ' | 0 | 588,000,000 | 0 | 45,000,000 |
Other comprehensive (expense) income: | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -72,000,000 | ' | 0 | 0 | -47,000,000 | -25,000,000 |
Dividends paid to Liberty and noncontrolling interest | -1,104,000,000 | ' | -12,000,000 | -1,047,000,000 | 0 | -45,000,000 |
Tax benefit resulting from exercise of employee stock options | 12,000,000 | ' | 12,000,000 | 0 | 0 | 0 |
Stock based compensation | 38,000,000 | ' | 38,000,000 | 0 | 0 | 0 |
Balance, June 30, 2014 at Dec. 31, 2013 | 6,341,000,000 | 0 | 6,703,000,000 | -620,000,000 | 139,000,000 | 119,000,000 |
Balance, June 30, 2014 (in shares) at Dec. 31, 2013 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 262,000,000 | ' | 0 | 243,000,000 | 0 | 19,000,000 |
Other comprehensive (expense) income: | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | 18,000,000 | ' | 0 | 0 | 15,000,000 | 3,000,000 |
Dividends paid to Liberty and noncontrolling interest | -516,000,000 | ' | 0 | -491,000,000 | 0 | -25,000,000 |
Tax benefit resulting from exercise of employee stock options | 8,000,000 | ' | 8,000,000 | 0 | 0 | 0 |
Stock based compensation | 18,000,000 | ' | 18,000,000 | 0 | 0 | 0 |
Balance, June 30, 2014 at Jun. 30, 2014 | $6,112,000,000 | $0 | $6,724,000,000 | ($882,000,000) | $154,000,000 | $116,000,000 |
Balance, June 30, 2014 (in shares) at Jun. 30, 2014 | ' | 1 | ' | ' | ' | ' |
Basis_of_Presentation1
Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Basis of Presentation [Abstract] | ' |
Basis of presentation | ' |
Basis of Presentation | |
QVC is a retailer of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised shopping programs, the Internet and mobile applications. In the U.S., QVC's live programming is distributed via its nationally televised shopping program 24 hours per day, 364 days per year ("QVC-U.S."). Internationally, QVC's program services are based in Japan ("QVC-Japan"), Germany ("QVC-Germany"), the U.K. ("QVC-U.K.") and Italy ("QVC-Italy"). QVC-Japan distributes live programming 24 hours per day, QVC-Germany distributes its program 24 hours per day with 23 hours of live programming and QVC-U.K. distributes its program 24 hours per day with 17 hours of live programming. QVC-Italy distributes programming live for 17 hours per day on satellite and digital terrestrial television and an additional seven hours per day of recorded programming on satellite and seven hours per day of general interest programming on digital terrestrial television. | |
On July 4, 2012, QVC entered into a joint venture with China Broadcasting Corporation, a limited liability company owned by China National Radio ("CNR"), for a 49% interest in a CNR subsidiary, CNR Home Shopping Co., Ltd. ("CNRS"). CNRS distributes live programming for 15 hours a day and recorded programming for nine hours a day. The CNRS joint venture is accounted for as an equity method investment recorded as equity in losses of investee in the consolidated statements of operations. | |
The Company has a venture with Mitsui & Co. LTD ("Mitsui") for a television and multimedia retailing service in Japan. QVC-Japan is owned 60% by the Company and 40% by Mitsui. The Company and Mitsui share in all profits and losses based on their respective ownership interests. During the years ended December 31, 2013, 2012 and 2011, QVC-Japan paid dividends to Mitsui of $45 million, $29 million and $50 million, respectively. | |
We are an indirect wholly owned subsidiary of Liberty (Nasdaq: LINTA, LINTB, LVNTA and LVNTB), which owns interests in a broad range of digital commerce businesses. We are attributed to the Liberty Interactive tracking stock, which tracks the assets and liabilities of Liberty's Interactive Group (the "Interactive Group"). The Interactive Group does not represent a separate legal entity; rather, it represents those businesses, assets and liabilities that are attributed to that group. Liberty also attributes to its Interactive Group those businesses primarily focused on digital commerce and its 38% ownership interest in HSN, Inc. ("HSN"), one of our two closest televised shopping competitors. | |
In October 2013, Liberty announced that its board has authorized management to pursue a plan to recapitalize (the "Recapitalization") its Liberty Interactive Group tracking stock into two new tracking stocks, one (currently the Liberty Interactive common stock) to be renamed the QVC Group common stock and the other to be designated as the Liberty Digital Commerce common stock. In the Recapitalization, record holders of Series A and Series B Liberty Interactive common stock would receive one share of the corresponding series of Liberty Digital Commerce common stock for each 10 shares of the renamed QVC Group common stock held by them as of the effective date. Liberty intends to attribute to the Liberty Digital Commerce Group its operating subsidiaries Provide Commerce, Inc.; Backcountry.com, Inc.; Bodybuilding.com, LLC; CommerceHub; Right Start and Evite along with cash and certain liabilities. The QVC Group, which is currently known as the Liberty Interactive Group, would have attributed to it the Company and Liberty's approximate 38% interest in HSN, along with cash and certain liabilities. | |
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. | |
Significant_Accounting_Policie
Significant Accounting Policies (Notes) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Significant accounting policies | ' | |||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||
(a) Cash and cash equivalents | ||||||||||||||
All highly liquid investments purchased with an original maturity of three months or less are classified as cash equivalents. Cash equivalents were $342 million and $424 million at December 31, 2013 and 2012, respectively. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximates their fair values (Level 1). | ||||||||||||||
(b) Restricted cash | ||||||||||||||
Restricted cash at December 31, 2013 and 2012 primarily includes a cash deposit with a third party trustee that provides financial assurance that the Company will fulfill its obligations in relation to claims under its workers' compensation policy. | ||||||||||||||
(c) Accounts receivable | ||||||||||||||
A provision for customer bad debts is provided as a percentage of accounts receivable based on historical experience and is included within selling, general and administrative expense. A provision for noncustomer bad debt expense, related to amounts due from vendors for unsold and returned products, is provided based on an estimate of the probable expected losses and is included in cost of goods sold. | ||||||||||||||
(d) Inventories | ||||||||||||||
Inventories, consisting primarily of products held for sale, are stated at the lower of cost or market. Cost is determined by the average cost method, which approximates the first-in, first-out method. Assessments about the realizability of inventory require the Company to make judgments based on currently available information about the likely method of disposition including sales to individual customers, returns to product vendors, liquidations and the estimated recoverable values of each disposition category. | ||||||||||||||
(e) Property, plant and equipment | ||||||||||||||
The costs of property, plant and equipment are capitalized and depreciated over their estimated useful lives using the straight-line method beginning in the month of acquisition or in-service date. Transponders under capital leases are stated at the present value of minimum lease payments. When assets are sold or retired, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in net income. The costs of maintenance and repairs are charged to expense as incurred. | ||||||||||||||
The Company is party to several transponder capacity arrangements as a lessee, which are accounted for as capital leases. | ||||||||||||||
(f) Capitalized interest | ||||||||||||||
The Company capitalizes interest cost incurred on debt during the construction of major projects exceeding one year. Capitalized interest was not material to the financial statements for any periods presented. | ||||||||||||||
(g) Internally developed software | ||||||||||||||
Internal software development costs are capitalized in accordance with guidance on accounting for the costs of computer software developed or obtained for internal use, and are classified within other intangible assets in the consolidated balance sheets. The Company amortizes computer software and internal software development costs over an estimated useful life of approximately three years using the straight-line method. | ||||||||||||||
(h) Goodwill | ||||||||||||||
Goodwill represents the excess of costs over the fair value of the net assets of businesses acquired. Goodwill is not amortized. Goodwill is tested annually for impairment, and more frequently if events and circumstances indicated that the asset might be impaired. An impairment loss would be recognized to the extent that the carrying amount exceeded the reporting unit's fair value. | ||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||||
(in millions) | QVC-U.S. | QVC-Japan | QVC-Germany | QVC-U.K. | QVC-Italy | Total | ||||||||
Balance as of December 31, 2011 | $ | 4,169 | 393 | 328 | 203 | 146 | 5,239 | |||||||
Acquisitions | 21 | — | — | — | — | 21 | ||||||||
Exchange rate fluctuations | — | (44 | ) | 6 | 9 | 3 | (26 | ) | ||||||
Balance as of December 31, 2012 | 4,190 | 349 | 334 | 212 | 149 | 5,234 | ||||||||
Exchange rate fluctuations | — | (61 | ) | 14 | 4 | 6 | (37 | ) | ||||||
Balance as of December 31, 2013 | $ | 4,190 | 288 | 348 | 216 | 155 | 5,197 | |||||||
The Company utilized a qualitative assessment for determining whether step one of the goodwill impairment analysis was necessary, and concluded it was not. In evaluating goodwill on a qualitative basis, the Company reviewed the business performance of each reporting unit, evaluated other relevant factors and determined that it was not more likely than not that an impairment existed for any of the Company's reporting units. The Company considered whether there were any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges, the legal environments and how these factors might impact company specific performance in future periods. | ||||||||||||||
If a step one test would have been necessary based on the qualitative factors, the Company would have compared the estimated fair value of a reporting unit to its carrying value. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company's valuation analysis are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. For those reporting units whose carrying value exceeds the fair value, a second test is required to measure the impairment loss (the "Step 2 Test"). In the Step 2 Test, the fair value (Level 3) of the reporting unit is allocated to all of the assets and liabilities of the reporting unit with any residual value being allocated to goodwill. Any excess of the carrying value of the goodwill over this allocated amount is recorded as an impairment charge. | ||||||||||||||
(i) Translation of foreign currencies | ||||||||||||||
Assets and liabilities of foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date, and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustments, net of applicable income taxes, are recorded as a component of accumulated other comprehensive income in equity. | ||||||||||||||
Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in the consolidated statements of operations as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions. | ||||||||||||||
(j) Revenue recognition | ||||||||||||||
The Company recognizes revenue at the time of delivery to customers. The revenue for shipments in-transit is recorded as deferred revenue. | ||||||||||||||
The Company's policy is to allow customers to return merchandise for up to thirty days after the date of shipment. An allowance for returned merchandise is provided at the time revenue is recorded as a percentage of sales based on historical experience. The total reduction in net revenue due to returns for the years ended years ended December 31, 2013, 2012 and 2011 aggregated to $2,036 million, $1,965 million and $1,900 million, respectively. | ||||||||||||||
The Company evaluates the criteria for reporting revenue gross as a principal versus net as an agent, in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, the Company is the primary obligor in the arrangement, has inventory risk, has latitude in establishing the selling price and selecting suppliers, and accordingly, records revenue gross. | ||||||||||||||
Sales and use taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from net revenue in the consolidated statements of operations. | ||||||||||||||
(k) Cost of goods sold | ||||||||||||||
Cost of goods sold primarily includes actual product cost, provision for obsolete inventory, buying allowances received from suppliers, shipping and handling costs and warehouse costs. | ||||||||||||||
(l) Advertising costs | ||||||||||||||
Advertising costs are expensed as incurred. Advertising costs amounted to $89 million, $91 million and $81 million for the years ended December 31, 2013, 2012 and 2011, respectively. These costs were included in selling, general and administrative expenses in the consolidated statements of operations. | ||||||||||||||
(m) Stock-based compensation | ||||||||||||||
As more fully described in note 10, the Company and Liberty have granted certain stock‑based awards to employees of the Company. The Company measures the cost of employee services received in exchange for an award of equity instruments (such as stock options and restricted stock) based on the grant-date fair value of the award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the award). Stock‑based compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations. | ||||||||||||||
(n) Impairment of long-lived assets | ||||||||||||||
The Company reviews long-lived assets, such as property, plant and equipment, internally developed software and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Impairment charges are recognized as an acceleration of depreciation expense or amortization expense in the consolidated statement of operations. | ||||||||||||||
During the fourth quarter of 2011, the Company determined that certain capitalized customer relationship management ("CRM") software did not meet our service-level expectations and desired functionality. As a result, the Company recorded an impairment of certain CRM assets in the amount of $47 million included in depreciation and amortization in the statement of operations within the QVC-U.S. operating segment. | ||||||||||||||
(o) Derivatives | ||||||||||||||
The Company accounts for derivatives and hedging activities in accordance with standards issued by the Financial Accounting Standards Board ("FASB"), which requires that all derivative instruments be recorded on the balance sheet at their respective fair values. Fair value is based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. For derivatives designated as hedges, changes in the fair value are either offset against the changes in fair value of the designated hedged item through earnings or recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. | ||||||||||||||
The Company generally enters into derivative contracts that it intends to designate as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. The ineffective portion of the change in fair value of a derivative instrument that qualifies as a cash flow hedge is reported in earnings. | ||||||||||||||
In 2009 and 2011, QVC entered into several interest rate swap arrangements to mitigate the interest rate risk associated with interest payments related to its variable rate debt. QVC assessed the effectiveness of its interest rate swaps using the hypothetical derivative method. During 2013, 2012 and 2011, QVC's elected interest terms did not effectively match the terms of the swap arrangements. As a result, the swaps did not qualify as cash flow hedges. Changes in fair value of these interest rate swaps were included in gains on financial instruments in the consolidated statements of operations. In March 2013, QVC's notional interest rate swaps of $3.1 billion expired. | ||||||||||||||
(p) Income taxes | ||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred income 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 income tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||||
When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other income (expense) in the consolidated statements of operations. | ||||||||||||||
(q) Noncontrolling interest | ||||||||||||||
The Company reports the noncontrolling interest of QVC-Japan within equity in the consolidated balance sheets and the amount of consolidated net income attributable to the noncontrolling interest is presented in the consolidated statements of operations. | ||||||||||||||
(r) Business acquisitions | ||||||||||||||
Acquired businesses are accounted for using the acquisition method of accounting, which requires the Company to record assets acquired and liabilities assumed at their respective fair values with the excess of the purchase price over estimated fair values recorded as goodwill. The assumptions made in determining the fair value of acquired assets and assumed liabilities as well as asset lives can materially impact the results of operations. The Company obtains information during due diligence and through other sources to establish respective fair values. Examples of factors and information that the Company uses to determine the fair values include tangible and intangible asset evaluations and appraisals and evaluations of existing contingencies and liabilities. If the initial valuation for an acquisition is incomplete by the end of the quarter in which the acquisition occurred, the Company will record a provisional estimate in the financial statements. The provisional estimate will be finalized as soon as information becomes available, but not later than one year from the acquisition date. | ||||||||||||||
(s) Investment in affiliate | ||||||||||||||
The Company holds an investment in China that is accounted for using the equity method. The equity method of accounting is used when we exercise significant influence, but do not have operating control, generally assumed to be 20%-50% ownership. Under the equity method, original investments are recorded at cost and adjusted by our share of undistributed earnings or losses of these companies. The excess of the Company's cost on its underlying interest in the net assets of the affiliate is allocated to identifiable intangible assets and goodwill. Equity investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. | ||||||||||||||
(t) Use of estimates in the preparation of consolidated financial statements | ||||||||||||||
The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, medical and other benefit related costs, depreciable lives of fixed assets, internally developed software, valuation of acquired intangible assets and goodwill, income taxes and stock‑based compensation. | ||||||||||||||
(u) Recent accounting pronouncements | ||||||||||||||
In February 2013, the FASB issued Accounting Standards Update ("ASU") No. 2013-02, which amends Accounting Standards Codification ("ASC") Topic 220, Comprehensive Income and requires that companies present information about reclassification adjustments from accumulated other comprehensive income in their interim and annual financial statements. The standard requires that companies present either in a single note, or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies will instead cross reference to the related footnote for additional information. QVC adopted this guidance as of January 1, 2013, and adoption did not have an impact on QVC's consolidated financial position, results of operations or cash flows. | ||||||||||||||
(v) Reclassifications | ||||||||||||||
Certain prior period amounts have been reclassified to conform with current period presentation. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Receivables [Abstract] | ' | |||||||||
Accounts Receivable | ' | |||||||||
Accounts Receivable | ||||||||||
The Company has two credit programs, the QVC Easy-Pay Plan (known as Q Pay in Germany) and the QVC-U.S. revolving credit card program. The QVC Easy-Pay Plan permits customers to pay for items in two or more installments. When the QVC Easy-Pay Plan is offered by QVC and elected by the customer, the first installment is typically billed to the customer's credit card upon shipment. Generally, the customer's credit card is subsequently billed up to five additional monthly installments until the total purchase price of the products has been billed by the Company. | ||||||||||
QVC-U.S. has an agreement with a large consumer financial institution (the "Bank") pursuant to which the Bank provides revolving credit directly to our customers for the sole purpose of purchasing merchandise from us with a QVC branded credit card ("Q Card"). We receive a portion of the net economics of the credit card program according to percentages that vary with the performance of the portfolio. We cannot predict the extent to which customers will use the Q Card, nor the extent that they will make payments on their outstanding balances. The net amount of finance income resulting from credit card operations is included as a reduction of selling, general and administrative expenses and was $63 million, $65 million and $58 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||
The Company also accepts major credit cards for its sales. Accounts receivable from major credit cards represents amounts owed to QVC from the credit card clearing houses for amounts billed but not yet collected. | ||||||||||
Accounts receivable consisted of the following: | ||||||||||
December 31, | ||||||||||
(in millions) | 2013 | 2012 | ||||||||
QVC Easy-Pay plan | $ | 915 | 816 | |||||||
Major credit card and other receivables | 279 | 313 | ||||||||
1,194 | 1,129 | |||||||||
Less allowance for doubtful accounts | (83 | ) | (74 | ) | ||||||
Accounts receivable, net | $ | 1,111 | 1,055 | |||||||
A summary of activity in the allowance for doubtful accounts was as follows (in millions): | ||||||||||
(in millions) | Balance | Additions‑ | Deductions‑ | Balance | ||||||
beginning | charged | write-offs | end of | |||||||
of year | to expense | year | ||||||||
2013 | $ | 74 | 81 | (72 | ) | 83 | ||||
2012 | 79 | 75 | (80 | ) | 74 | |||||
2011 | 66 | 68 | (55 | ) | 79 | |||||
The carrying value of accounts receivable, adjusted for the reserves described above, approximates fair value as of December 31, 2013, 2012 and 2011. |
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Property, Plant and Equipment, Net | ' | ||||||
Property, Plant and Equipment, Net | |||||||
Property, plant and equipment consisted of the following: | |||||||
December 31, | Estimated | ||||||
useful | |||||||
(in millions) | 2013 | 2012 | life | ||||
Land | $ | 87 | 97 | N/A | |||
Buildings and improvements | 954 | 877 | 8 - 20 years | ||||
Furniture and other equipment | 429 | 412 | 2 - 8 years | ||||
Broadcast equipment | 107 | 91 | 3 - 5 years | ||||
Computer equipment | 204 | 185 | 2 - 4 years | ||||
Transponders (note 9) | 170 | 137 | 8 - 15 years | ||||
Projects in progress | 74 | 199 | N/A | ||||
2,025 | 1,998 | ||||||
Less accumulated depreciation | (919 | ) | (867 | ) | |||
Property, plant and equipment, net | $ | 1,106 | 1,131 | ||||
In 2013, QVC-Japan transitioned to its new headquarters in Japan that includes television studios, broadcast facilities, administrative offices and a call center. The total project cost was approximately $220 million. | |||||||
In 2012, QVC-U.K. transitioned to its new leased headquarters in the U.K. that includes television studios, broadcast facilities and administrative offices. QVC-U.K. made certain improvements to its new leased facility costing approximately $50 million. | |||||||
In 2014, QVC-Italy will take ownership of its current leased headquarters in Italy that includes television studios, broadcast facilities, administrative offices and a call center for approximately $22 million, of which $14 million was deposited in 2013. |
Cable_and_Satellite_Television4
Cable and Satellite Television Distribution Rights, Net | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Cable and Satellite Television Distribution Rights [Abstract] | ' | ' | ||||||||||
Cable and Satellite Television Distribution Rights, Net | ' | ' | ||||||||||
Cable and Satellite Television Distribution Rights, Net | Cable and Satellite Television Distribution Rights, Net | |||||||||||
Cable and satellite television distribution rights consisted of the following: | Cable and satellite television distribution rights consisted of the following: | |||||||||||
June 30, | December 31, | December 31, | ||||||||||
(in millions) | 2013 | 2012 | ||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Cable and satellite television distribution rights | $ | 2,324 | 2,304 | |||||||||
Cable and satellite television distribution rights | $ | 2,334 | 2,324 | |||||||||
Less accumulated amortization | (1,700 | ) | (1,540 | ) | ||||||||
Less accumulated amortization | (1,794 | ) | (1,700 | ) | Cable and satellite television distribution rights, net | $ | 624 | 764 | ||||
Cable and satellite television distribution rights, net | $ | 540 | 624 | |||||||||
The Company enters into affiliation agreements with cable and satellite television providers for carriage of the Company's shopping service, as well as for certain channel placement. If these cable and satellite affiliates were to add additional subscribers to the agreement through acquisition, the Company may be required to make additional payments. | ||||||||||||
The Company recorded amortization expense of $46 million and $44 million for the three months ended June 30, 2014 and 2013, respectively, related to cable and satellite television distribution rights. For the six months ended June 30, 2014 and 2013, amortization expense for cable and satellite television distribution rights was $93 million and $86 million, respectively. | The Company's ability to continue to sell products to its customers is dependent on its ability to maintain and renew these affiliation agreements. In some cases, renewals are not agreed upon prior to the expiration of a given agreement while the programming continues to be carried by the relevant distributor without an effective agreement in place. The Company does not have distribution agreements with some of the cable operators that carry its programming. | |||||||||||
As of June 30, 2014, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | Cable and satellite television distribution rights are amortized using the straight-line method over the lives of the individual agreements. The remaining weighted average lives of the cable and satellite television distribution rights was approximately 3.7 years at December 31, 2013. Amortization expense for cable and satellite television distribution rights was $177 million, $163 million and $167 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||
The increase in channel placement amortization and related expenses in 2013 was primarily due to new and amended long-term cable and satellite television distribution agreements in the U.S. | ||||||||||||
As of December 31, 2013, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | ||||||||||||
Remainder of 2014 | $ | 87 | ||||||||||
2015 | 168 | 2014 | $ | 176 | ||||||||
2016 | 162 | 2015 | 167 | |||||||||
2017 | 111 | 2016 | 161 | |||||||||
2018 | 6 | 2017 | 110 | |||||||||
2018 | 5 | |||||||||||
The decrease in future amortization expense in 2018 is primarily due to the end of affiliation agreement terms for contracts in place at the time of the Liberty acquisition of QVC in 2003. | ||||||||||||
In return for carrying our signals, each programming distributor in the U.S. receives an allocated portion, based upon market share, of up to 5% of the net sales of merchandise sold via the television programs and from certain Internet sales to customers located in the programming distributors' service areas. In Japan, Germany, the U.K. and Italy, programming distributors predominately receive an agreed-upon annual fee, a monthly fee per subscriber regardless of the net sales, a variable percentage of net sales or some combination of the above arrangements. The Company recorded expense related to these commissions of $298 million, $296 million and $299 million for the years ended December 31, 2013, 2012 and 2011, respectively, which is included as part of operating expenses in the consolidated statements of operations. |
Other_Intangible_Assets_Net1
Other Intangible Assets, Net | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Other Intangible Assets [Abstract] | ' | ' | ||||||||||||||||||||||||
Intangible Assets Disclosure | ' | ' | ||||||||||||||||||||||||
Other Intangible Assets, Net | Other Intangible Assets, Net | |||||||||||||||||||||||||
Other intangible assets consisted of the following: | Other intangible assets consisted of the following: | |||||||||||||||||||||||||
June 30, | December 31, | December 31, | Weighted average remaining life (years) | |||||||||||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | Gross | Accumulated | Other intangible assets, net | Gross | Accumulated | Other intangible assets, net | (in millions) | Gross | Accumulated | Gross | Accumulated | |||||||||||||||
cost | amortization | cost | amortization | cost | amortization | cost | amortization | |||||||||||||||||||
Purchased and internally developed software | $ | 630 | (423 | ) | 207 | 615 | (393 | ) | 222 | Purchased and internally developed software | $ | 615 | (393 | ) | 575 | (352 | ) | 1.7 | ||||||||
Affiliate and customer relationships | 2,451 | (1,890 | ) | 561 | 2,450 | (1,802 | ) | 648 | Affiliate and customer relationships | 2,450 | (1,802 | ) | 2,445 | (1,624 | ) | 3.8 | ||||||||||
Debt origination fees | 64 | (17 | ) | 47 | 51 | (13 | ) | 38 | Debt origination fees | 51 | (13 | ) | 54 | (18 | ) | 8.8 | ||||||||||
Trademarks (indefinite life) | 2,428 | — | 2,428 | 2,428 | — | 2,428 | Trademarks (indefinite life) | 2,428 | — | 2,429 | — | — | ||||||||||||||
$ | 5,573 | (2,330 | ) | 3,243 | 5,544 | (2,208 | ) | 3,336 | $ | 5,544 | (2,208 | ) | 5,503 | (1,994 | ) | 3.5 | ||||||||||
The Company recorded amortization expense of $66 million and $63 million for the three months ended June 30, 2014 and 2013, respectively, related to other intangible assets. For the six months ended June 30, 2014 and 2013, amortization expense for other intangible assets was $130 million and $125 million, respectively, related to other intangible assets. | Amortization expense for other intangible assets was $254 million, $237 million and $272 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
As of June 30, 2014, the related amortization expense and interest expense for each of the next five years ended December 31 was as follows (in millions): | The increase in software amortization in 2013 was primarily due to solutions to enhance customer service and productivity in the U.S and Germany. | |||||||||||||||||||||||||
During the fourth quarter of 2011, QVC determined that certain capitalized customer relationship management ("CRM") software did not meet service-level expectations and desired functionality. As a result, QVC recorded an impairment of certain CRM assets in the amount of $47 million included in depreciation and amortization in the consolidated statement of operations within the QVC-U.S. operating segment. | ||||||||||||||||||||||||||
As of December 31, 2013, the related amortization expense and interest expense for each of the next five years ended December 31 was as follows (in millions): | ||||||||||||||||||||||||||
Remainder of 2014 | $ | 146 | ||||||||||||||||||||||||
2015 | 270 | 2014 | $ | 280 | ||||||||||||||||||||||
2016 | 235 | 2015 | 259 | |||||||||||||||||||||||
2017 | 135 | 2016 | 223 | |||||||||||||||||||||||
2018 | 9 | 2017 | 122 | |||||||||||||||||||||||
2018 | 9 | |||||||||||||||||||||||||
The decrease in future amortization expense in 2018 is primarily due to the end of the useful lives of the affiliate and customer relationships in place at the time of the Liberty acquisition of QVC in 2003. |
Accrued_Liabilities1
Accrued Liabilities | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||
Accrued Liabilities [Abstract] | ' | ' | |||||||||
Accrued Liabilities | ' | ' | |||||||||
Accrued Liabilities | Accrued Liabilities | ||||||||||
Accrued liabilities consisted of the following: | Accrued liabilities consisted of the following: | ||||||||||
June 30, | December 31, | December 31, | |||||||||
(in millions) | 2013 | 2012 | |||||||||
(in millions) | 2014 | 2013 | |||||||||
Accounts payable non-trade | 323 | 264 | |||||||||
Accounts payable non-trade | 188 | 323 | |||||||||
Income taxes | 126 | 154 | |||||||||
Income taxes | 98 | 126 | |||||||||
Allowance for sales returns | 108 | 92 | |||||||||
Accrued compensation and benefits | 96 | 98 | |||||||||
Accrued compensation and benefits | 98 | 100 | |||||||||
Allowance for sales returns | 80 | 108 | |||||||||
Sales and other taxes | 79 | 62 | |||||||||
Accrued interest | 78 | 58 | |||||||||
Deferred revenue | 73 | 85 | |||||||||
Deferred revenue | 73 | 73 | |||||||||
Liability for consigned goods sold | 69 | 56 | |||||||||
Sales and other taxes | 53 | 79 | |||||||||
Accrued interest | 58 | 50 | |||||||||
Other | 77 | 95 | |||||||||
Other | 95 | 92 | |||||||||
$ | 743 | 960 | |||||||||
1,029 | 955 | ||||||||||
LongTerm_Debt_and_Interest_Rat
Long-Term Debt and Interest Rate Swap Arrangements | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ' | ||||||||||
Debt Disclosure | ' | ' | ||||||||||
Long-Term Debt | Long-Term Debt and Interest Rate Swap Arrangements | |||||||||||
Long-term debt consisted of the following: | Long-term debt consisted of the following: | |||||||||||
June 30, | December 31, | December 31, | ||||||||||
(in millions) | 2013 | 2012 | ||||||||||
(in millions) | 2014 | 2013 | ||||||||||
7.125% Senior Secured Notes due 2017 | $ | — | 500 | |||||||||
3.125% Senior Secured Notes due 2019, net of original issue discount | $ | 399 | — | |||||||||
7.5% Senior Secured Notes due 2019, net of original issue discount | 761 | 988 | ||||||||||
7.5% Senior Secured Notes due 2019, net of original issue discount | 761 | 761 | ||||||||||
7.375% Senior Secured Notes due 2020 | 500 | 500 | ||||||||||
7.375% Senior Secured Notes due 2020 | 500 | 500 | ||||||||||
5.125% Senior Secured Notes due 2022 | 500 | 500 | ||||||||||
5.125% Senior Secured Notes due 2022 | 500 | 500 | ||||||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | 750 | — | ||||||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | 750 | 750 | ||||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | — | ||||||||||
4.85% Senior Secured Notes due 2024, net of original issue discount | 600 | — | ||||||||||
Senior secured credit facility | 922 | 903 | ||||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | 300 | ||||||||||
Capital lease obligations | 80 | 86 | ||||||||||
Senior secured credit facility | 65 | 922 | ||||||||||
Total debt | 3,813 | 3,477 | ||||||||||
Capital lease obligations | 73 | 80 | ||||||||||
Less current portion | (13 | ) | (12 | ) | ||||||||
Total debt | 3,948 | 3,813 | Long-term portion of debt and capital lease obligations | $ | 3,800 | 3,465 | ||||||
Less current portion | (11 | ) | (13 | ) | (a) 2013 Tender Offers | |||||||
Long-term portion of debt and capital lease obligations | $ | 3,937 | 3,800 | On March 4, 2013, QVC announced the commencement of cash tender offers (the "Offers") for any and all of its outstanding $500 million in aggregate principal amount of 7.125% Senior Secured Notes due 2017 and up to $250 million in aggregate principal amount of its 7.5% Senior Secured Notes due 2019. | ||||||||
(b) Senior Secured Notes due 2017 | ||||||||||||
Senior Secured Notes | On March 23, 2010, QVC issued $500 million principal amount of 7.125% Senior Secured Notes due 2017 at par. On March 18, 2013, $124 million of the 7.125% Senior Secured Notes due 2017 were tendered pursuant to the Offers, whereby holders of the 7.125% Senior Secured Notes due 2017 received consideration of $1,039.40 for each $1,000 principal amount of tendered 7.125% Senior Secured Notes due 2017. On April 17, 2013, QVC completed the redemption of the remaining $376 million principal amount of its 7.125% Senior Secured Notes due 2017, whereby holders received consideration of $1,035.63 for each $1,000 principal amount of tendered 7.125% Senior Secured Notes due 2017. | |||||||||||
On March 18, 2014, QVC issued $400 million principal amount of 3.125% Senior Secured Notes due 2019 at an issue price of 99.828% and $600 million principal amount of 4.850% Senior Secured Notes due 2024 at an issue price of 99.927% (collectively, the “Notes”). The Notes are secured by a first-priority lien on the capital stock of QVC, which is the same collateral that secures QVC's existing secured indebtedness and certain future indebtedness. The net proceeds from the offerings were used to repay indebtedness under QVC’s senior secured credit facility and for working capital and other general corporate purposes. Interest is payable semi-annually. | (c) Senior Secured Notes due 2019 | |||||||||||
Senior Secured Credit Facility | On September 25, 2009, QVC issued $1 billion principal amount of 7.5% Senior Secured Notes due 2019 at an issue price of 98.278%. On March 18, 2013, $231 million of the 7.5% Senior Secured Notes due 2019 were tendered pursuant to the Offers, whereby holders of the 7.5% Senior Secured Notes due 2019 received consideration of $1,120 for each $1,000 principal amount of tendered 7.5% Senior Secured Notes due 2019. The senior secured notes have equal priority to the senior secured credit facility. The notes are secured by the stock of QVC and certain of its subsidiaries. Interest is payable semi-annually. | |||||||||||
QVC had approximately $1.9 billion available under the terms of the Company's senior secured credit facility at June 30, 2014. The interest rate on the senior secured credit facility was 1.9% at June 30, 2014. | (d) Senior Secured Notes due 2020 | |||||||||||
Other Debt Related Information | On March 23, 2010, QVC issued $500 million principal amount of 7.375% Senior Secured Notes due 2020 at par. The senior secured notes have equal priority to the senior secured credit facility. The notes are secured by the stock of QVC and certain of its subsidiaries. Interest is payable semi-annually. | |||||||||||
QVC was in compliance with all of its debt covenants at June 30, 2014. | (e) Senior Secured Notes due 2022 | |||||||||||
During the quarter, there were no significant changes to QVC's debt credit ratings. | On July 2, 2012, QVC issued $500 million principal amount of 5.125% Senior Secured Notes due 2022 at par. The senior secured notes have equal priority to the senior secured credit facility. The notes are secured by the stock of QVC and certain of its subsidiaries. Interest is payable semi-annually. | |||||||||||
The weighted average rate applicable to all of the outstanding debt (excluding capital leases) was 5.5% as of June 30, 2014. | (f) Senior Secured Notes due 2023 and 2043 | |||||||||||
On March 18, 2013, QVC issued $750 million principal amount of 4.375% Senior Secured Notes due 2023 at an issue price of 99.968% and issued $300 million principal amount of 5.95% Senior Secured Notes due 2043 at an issue price of 99.973%. These notes are secured by the stock of QVC and have equal priority to the senior secured credit facility and QVC's other notes. Interest is payable semi-annually. | ||||||||||||
The net proceeds from the issuance of these instruments were used to reduce the outstanding principal under QVC's existing 7.125% Senior Secured Notes due 2017, the 7.5% Senior Secured Notes due 2019 and the senior secured credit facility, as well as for general corporate purposes. | ||||||||||||
(g) Senior Secured Credit Facility | ||||||||||||
On March 1, 2013, we amended and restated our senior secured credit facility, which provides for a $2.0 billion revolving credit facility with a $250 million sub-limit for standby letters of credit and $1.0 billion of uncommitted incremental revolving loan commitments or incremental term loans. QVC may elect that the loans extended under the senior secured credit facility bear interest at a rate per annum equal to the ABR Rate or LIBOR, as each is defined in the senior secured credit facility agreement, plus a margin of 0.25% to 2.00% depending on various factors. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. Any amounts prepaid on the revolving credit facility may be reborrowed. Payment of loans may be accelerated following certain customary events of default. The senior secured credit facility is a multi-currency facility. The senior secured credit facility is secured by the stock of QVC. We had $1.1 billion available under the terms of the senior secured credit facility at December 31, 2013. The interest rate on the senior secured credit facility was 1.9% at December 31, 2013. | ||||||||||||
The purpose of the amendment was to, among other things, extend the maturity of our senior secured credit facility to March 1, 2018 and lower the interest rate on borrowings. | ||||||||||||
The senior secured credit facility contains certain affirmative and negative covenants, including certain restrictions with respect to, among other things: incurring additional indebtedness; creating liens on property or assets; making certain loans or investments; selling or disposing of assets; paying certain dividends and other restricted payments; dissolving, consolidating or merging; entering into certain transactions with affiliates; entering into sale or leaseback transactions; restricting subsidiary distributions; and limiting QVC's ratio of consolidated total debt to consolidated Adjusted OIBDA (Adjusted OIBDA is defined in note 15). | ||||||||||||
(h) Interest Rate Swap Arrangements | ||||||||||||
In 2009 and 2011, QVC entered into several interest rate swap arrangements to mitigate the interest rate risk associated with interest payments related to its variable rate debt. QVC assessed the effectiveness of its interest rate swaps using the hypothetical derivative method. During 2013, 2012 and 2011, QVC's elected interest terms did not effectively match the terms of the swap arrangements. As a result, the swaps did not qualify as cash flow hedges. Changes in fair value of these interest rate swaps were included in gains on financial instruments in the consolidated statements of operations. In March 2013, QVC's notional interest rate swaps of $3.1 billion expired. | ||||||||||||
(i) Other Debt Related Information | ||||||||||||
As a result of the refinancing transactions discussed above, we incurred an extinguishment loss of $57 million for the year ended December 31, 2013, recorded as loss on extinguishment of debt in the consolidated statements of operations. | ||||||||||||
QVC was in compliance with all of its debt covenants at December 31, 2013. | ||||||||||||
During the year, there were no significant changes to QVC's debt credit ratings. | ||||||||||||
The weighted average rate applicable to all of the outstanding debt (excluding capital leases) was 5.0% as of December 31, 2013. | ||||||||||||
At December 31, 2013 and 2012, outstanding letters of credit totaled $26 million and $30 million, respectively. |
Leases_and_Transponder_Service3
Leases and Transponder Service Agreements | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Leases and Transponder Service Agreements [Abstract] | ' | ' | ||||||||||
Leases of Lessee Disclosure | ' | ' | ||||||||||
Leases and Transponder Service Arrangements | Leases and Transponder Service Arrangements | |||||||||||
Future minimum payments under noncancelable operating leases and capital transponder leases with initial terms of one year or more at June 30, 2014 consisted of the following: | Future minimum payments under noncancelable operating leases and capital transponder leases with initial terms of one year or more at December 31, 2013 consisted of the following: | |||||||||||
(in millions) | Capital transponders | Operating leases | (in millions) | Capital transponders | Operating leases | |||||||
Remainder of 2014 | $ | 7 | 10 | 2014 | $ | 15 | 16 | |||||
2015 | 11 | 15 | 2015 | 11 | 14 | |||||||
2016 | 11 | 13 | 2016 | 11 | 12 | |||||||
2017 | 11 | 10 | 2017 | 11 | 10 | |||||||
2018 | 12 | 11 | 2018 | 12 | 10 | |||||||
Thereafter | 28 | 101 | Thereafter | 28 | 96 | |||||||
Total | $ | 80 | 160 | Total | $ | 88 | 158 | |||||
The Company has entered into ten separate agreements with transponder suppliers to transmit its signals in the U.S., Germany and the U.K. at an aggregate monthly cost of $1 million. Depreciation expense related to the transponders was $3 million for both the three months ended June 30, 2014 and 2013, respectively. For both the six months ended June 30, 2014 and 2013, depreciation expense related to the transponders was $6 million, respectively. Total future minimum capital lease payments of $80 million include $7 million of imputed interest. The transponder service agreements for our U.S. transponders expire in 2019 through 2020. The transponder service agreements for our international transponders expire in December 2014 through 2022. | We distribute our television programs, via satellite and optical fiber, to cable television and direct-to-home satellite system operators for retransmission to their subscribers in the U.S., Japan, Germany, the U.K. and neighboring countries. We also transmit our television programs over digital terrestrial broadcast television to viewers throughout Italy, the U.K. and to viewers in certain geographic regions in the U.S and Germany. In the U.S., we uplink our analog and digital programming transmissions using a third party service. Both transmissions are uplinked to protected, non-preemptible transponders on U.S. satellites. "Protected" status means that, in the event of a transponder failure, our signal will be transferred to a spare transponder or, if none is available, to a preemptible transponder located on the same satellite or, in certain cases, to a transponder on another satellite owned by the same service provider if one is available at the time of the failure. "Non-preemptible" status means that, in the event of a transponder failure, our transponders cannot be preempted in favor of a user of a failed transponder, even another user with "protected status." Our international business units each obtain uplinking services from third parties and transmit their programming to non-preemptible transponders on international satellites. Our transponder service agreements for our U.S. transponders expire at the earlier of the end of the lives of the satellites or the service agreements. The service agreements in the U.S. expire in 2019 through 2020. Our transponder service agreements for our international transponders expire in 2014 through 2022. | |||||||||||
Expenses for operating leases, principally for data processing equipment and facilities and for satellite uplink service agreements, amounted to $7 million and $6 million for the three months ended June 30, 2014 and 2013, respectively. For both the six months ended June 30, 2014 and 2013, expenses for operating leases was $14 million, respectively. | The Company has entered into ten separate agreements with transponder suppliers to transmit its signals in the U.S., Germany and the U.K. at an aggregate monthly cost of $1 million. Depreciation expense related to the transponders was $12 million, $11 million and $14 million for the years ended December 31, 2013, 2012 and 2011, respectively. Total future minimum capital lease payments of $88 million include $9 million of imputed interest. | |||||||||||
QVC's ability to continue to sell products to its customers is dependent on its ability to maintain uninterrupted broadcast. | ||||||||||||
Expenses for operating leases, principally for data processing equipment and facilities and for satellite uplink service agreements, amounted to $28 million, $31 million and $24 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
The Company entered into a 21 year operating lease for its QVC-U.K. headquarters that commenced in 2012, which is included in the future minimum operating lease payments in the above table. |
Stock_Options_and_Other_ShareB
Stock Options and Other Share-Based Awards | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Stock Options and Other Share-Based Payments | ' | |||||||
(10) Stock Options and Other Share-Based Payments | ||||||||
QVC employees and officers received stock options (the "Options") and restricted shares in LINTA and LVNTA common stock in accordance with the Liberty Interactive Corporation 2000 Incentive Plan, as amended from time to time; the Liberty Interactive Corporation 2007 Incentive Plan, as amended from time to time; the Liberty Interactive Corporation 2010 Incentive Plan, as amended from time to time; and the Liberty Interactive Corporation 2012 Incentive Plan, as amended from time to time (collectively, the "Liberty Incentive Plan"). | ||||||||
(a) Stock options | ||||||||
In August 2012, the LINTA stock was split into two tracking stocks, LINTA and LVNTA. The split was one LVNTA share for every 20 LINTA shares. Under the Liberty Incentive Plan, the Options have an exercise price equal to or greater than the fair market value of a share of LINTA and LVNTA common stock at the date of the grant. Under the Liberty Incentive Plan, the Options have a seven year term from the date of grant, with the Options generally becoming exercisable over four years from the date of grant, vesting in eight equal semi-annual traunches. | ||||||||
For accounting purposes, the Options are classified as equity‑based awards. | ||||||||
During the fourth quarter of 2012, Liberty entered into an option exchange transaction that required a series of transactions with certain officers of the Company in order to recognize tax deductions associated with the stock options in the current year versus future years (the "Option Exchange"). On December 4, 2012 (the "Grant Date"), there was an acceleration of (i) each unvested in-the-money option to acquire shares of LINTA and (ii) each unvested in-the-money option to acquire shares of LVNTA, in each case, held by certain officers (collectively, the "Eligible Optionholders"). Following this acceleration, also on the Grant Date, each Eligible Optionholder exercised, on a net settled basis, substantially all of his or her outstanding in-the-money vested and unvested options to acquire LINTA shares and LVNTA shares (the "Eligible Options"), and: | ||||||||
• | with respect to each vested Eligible Option, Liberty granted the Eligible Optionholder a vested new option with substantially the same terms and conditions as the exercised vested Eligible Option; | |||||||
• | and with respect to each unvested Eligible Option: | |||||||
◦ | the Eligible Optionholder sold to Liberty the shares of LINTA or LVNTA, as applicable, received upon exercise of such unvested Eligible Option and used the proceeds of that net sale to purchase from Liberty at that price an equal number of restricted LINTA or LVNTA shares, as applicable, which have a vesting schedule identical to that of the exercised unvested Eligible Option; and | |||||||
◦ | Liberty granted the Eligible Optionholder an unvested new option, with substantially the same terms and conditions as the exercised unvested Eligible Option, except that (a) the number of shares underlying the new option is equal to the number of shares underlying such exercised unvested Eligible Option less the number of restricted shares purchased from Liberty as described above and (b) the exercise price of the new option is the closing price per LINTA or LVNTA share, as applicable, on The Nasdaq Global Select Market on the grant date. | |||||||
This Option Exchange was considered a modification under ASC 718 - Stock Compensation and resulted in incremental compensation expense in 2012 and over the remaining vesting periods of the new unvested options and the restricted shares, which is included in unrecognized compensation. | ||||||||
A summary of the activity of the Liberty Incentive Plan with respect to the LINTA Options granted to QVC employees and officers as of and during the year ended December 31, 2013 is presented below: | ||||||||
Options | Weighted | Aggregate | Weighted average remaining | |||||
average | intrinsic | life | ||||||
exercise | value | (years) | ||||||
price | (000s) | |||||||
Outstanding at January 1, 2013 | 14,741,992 | 14.53 | 75,897 | 4.6 | ||||
Granted | 4,187,768 | 21.08 | ||||||
Exercised | (2,776,282 | ) | 10.19 | |||||
Forfeited | (515,339 | ) | 15.87 | |||||
Outstanding at December 31, 2013 | 15,638,139 | 17.01 | 192,975 | 4.4 | ||||
Exercisable at December 31, 2013 | 5,932,895 | 13.44 | 94,400 | 3.2 | ||||
A summary of the activity of the Liberty Incentive Plan with respect to the LVNTA Options granted to QVC employees and officers as of and during the year ended December 31, 2013 is presented below: | ||||||||
Options | Weighted average exercise | Aggregate intrinsic | Weighted average remaining | |||||
price | value (000s) | life (years) | ||||||
Outstanding at January 1, 2013 | 220,606 | 58.8 | 1,977 | 4.6 | ||||
Granted | — | — | ||||||
Exercised | — | — | ||||||
Forfeited | — | — | ||||||
Outstanding at December 31, 2013 | 220,606 | 58.8 | 14,072 | 3.6 | ||||
Exercisable at December 31, 2013 | 71,554 | 58.8 | 4,564 | 2.6 | ||||
Upon employee exercise of the Options, the exercise price is remitted to Liberty in exchange for the shares. The aggregate intrinsic value of all options exercised during the years ended December 31, 2013, 2012 and 2011 was $37 million, $97 million and $20 million, respectively. | ||||||||
The weighted average fair value at date of grant of a LINTA Option granted, excluding the Option Exchange, during the years ended December 31, 2013, 2012 and 2011 was $8.16, $6.66 and $7.32, respectively. The weighted average fair value at date of grant of a LINTA Exchange Option granted during the year ended December 31, 2012 was $6.94. The weighted average fair value at date of grant of a LVNTA Option granted, excluding the Option Exchange, during the year ended December 31, 2012 was $15.22. The weighted average fair value at date of grant of a LVNTA Exchange Option granted during the year ended December 31, 2012 was $25.69. | ||||||||
During the years ended December 31, 2013, 2012 and 2011, the fair value of each LINTA Option was determined as of the date of grant using the Black‑Scholes option pricing model with the following assumptions: | ||||||||
2013 | 2012 | 2011 | ||||||
Weighted average expected volatility | 38.3 | % | 41.9 | % | 44.8 | % | ||
Expected term (years) | 6.2 | 5.2 | 5.9 | |||||
Risk free interest rate | 1.1 | % | 0.8 | % | 1.2%-2.5% | |||
Expected dividend yield | — | — | — | |||||
During the year ended December 31, 2012, the fair value of each LVNTA Option was determined as of the date of grant using the Black‑Scholes option pricing model with the following assumptions: | ||||||||
2012 | ||||||||
Weighted average expected volatility | 49.9 | % | ||||||
Expected term (years) | 4.9 | |||||||
Risk free interest rate | 0.6 | % | ||||||
Expected dividend yield | — | |||||||
Expected volatility is based on historical and implied volatilities of LINTA and LVNTA common stock over a period commensurate with the expected term of the Options. The Company estimates the expected term of the Options based on historical exercise and forfeiture data. The volatility used in the calculation for the Options is based on the historical volatility of Liberty's stocks and the implied volatility of publicly traded Liberty options. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject Options. | ||||||||
The fair value of the Options is recognized as expense over the requisite service period, net of estimated forfeitures. Based on QVC's historical experience of option pre-vesting cancellations, the Company has assumed an annualized forfeiture rate of 10% for all participants. We will record additional expense if the actual forfeiture rate is lower than estimated, and will record a recovery of prior expense if the actual forfeiture is higher than estimated. | ||||||||
As of December 31, 2013, 2012 and 2011, the Company recorded $31 million, $29 million and $18 million, respectively, of stock‑based compensation expense related to the Options. The total unrecognized compensation cost related to unvested Options, net of estimated forfeitures, was approximately $50 million as of December 31, 2013. Such amount will be recognized in the Company's consolidated statements of operations. These LINTA Options had a weighted average life of 4.8, 4.0 and 4.1 years for the years ended December 31, 2013, 2012 and 2011, respectively. These LVNTA Options had a weighted average life of 4.5 and 5.6 years at December 31, 2013 and 2012, respectively. | ||||||||
(b) Restricted stock plan | ||||||||
A summary of the activity of the Liberty Incentive Plan with respect to the LINTA restricted shares granted to QVC employees and officers as of and during the year ended December 31, 2013 is presented below: | ||||||||
Restricted Shares | Weighted average | |||||||
grant date fair value | ||||||||
Outstanding at January 1, 2013 | 1,454,148 | 12.75 | ||||||
Granted | 450,140 | 21.44 | ||||||
Lapsed | (608,490 | ) | 9.81 | |||||
Forfeited | (81,336 | ) | 16.25 | |||||
Outstanding at December 31, 2013 | 1,214,462 | 18.01 | ||||||
A summary of the activity of the Liberty Incentive Plan with respect to the LVNTA restricted shares granted to QVC employees and officers as of and during the year ended December 31, 2013 is presented below: | ||||||||
Restricted Shares | Weighted | |||||||
Average | ||||||||
Grant Date Fair Value | ||||||||
Outstanding at January 1, 2013 | 65,542 | 31.75 | ||||||
Granted | — | — | ||||||
Lapsed | (30,007 | ) | 23.64 | |||||
Forfeited | (3,456 | ) | 37.84 | |||||
Outstanding at December 31, 2013 | 32,079 | 38.68 | ||||||
As of December 31, 2013, 2012 and 2011, the Company recorded $7 million, $5 million and $4 million, respectively, of stock‑based compensation expense related to these shares. The total unrecognized compensation cost related to restricted shares of LINTA and LVNTA common stock was approximately $13 million as of December 31, 2013. Such amount will be recognized in the Company's consolidated statements of operations. Restricted shares of LINTA common stock had a weighted average life of 1.6, 2.5 and 2.1 years for the years ended December 31, 2013, 2012 and 2011, respectively. Restricted shares of LVNTA common stock had a weighted average life of 1.8 and 2.3 years at December 31, 2013 and 2012, respectively. |
Income_Taxes1
Income Taxes | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | ' | |||||||
Income Taxes | ' | ' | |||||||
Income Taxes | Income Taxes | ||||||||
The Company calculates its interim income tax provision by applying its best estimate of the annual expected effective tax rate to its ordinary year-to-date income or loss. The tax or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. | Income tax expense (benefit) consisted of the following: | ||||||||
The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent and temporary differences as a result of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the tax environment changes. To the extent that the estimated annual effective tax rate changes during a quarter, the effect of the change on the prior quarters is included in the tax expense for the current quarter. | |||||||||
For the three months ended June 30, 2014, the Company recorded a tax provision of $83 million, which represented an effective tax rate of 37.2%. For the six months ended June 30, 2014, the Company recorded a tax provision of $157 million, which represented an effective tax rate of 37.5%. These rates differ from the U.S. federal income tax rate of 35.0% due primarily to state tax expense. | |||||||||
QVC is party to ongoing discussions with the Internal Revenue Service under the Compliance Assurance Process audit program. The Company files Federal tax returns on a consolidated basis with its parent company, Liberty. The Company, or one of its subsidiaries, files income tax returns in various states and foreign jurisdictions. As of June 30, 2014, the Company, or one of its subsidiaries, was under examination in California, Minnesota, New Jersey, New York, the City of New York and Pennsylvania, as well as in Germany, the U.K, and Italy. | Years ended December 31, | ||||||||
The amounts of the tax-related balances due to Liberty at June 30, 2014 and December 31, 2013 were $22 million and $78 million, respectively, and were included in accrued liabilities in the accompanying condensed consolidated balance sheets. | (in millions) | 2013 | 2012 | 2011 | |||||
The Company previously entered into a Tax Liability Allocation and Indemnification Agreement (the “Tax Agreement”) with Liberty. The Tax Agreement establishes the methodology for the calculation and payment of income taxes in connection with the consolidation of the Company with Liberty for income tax purposes. Generally, the Tax Agreement provides that the Company will pay Liberty an amount equal to the tax liability, if any, that it would have if it were to file as a consolidated group separate and apart from Liberty, with exceptions for the treatment and timing of certain items, including but not limited to deferred intercompany transactions, credits, and net operating and capital losses. To the extent that the separate company tax expense is different from the payment terms of the Tax Agreement, the difference is recorded as either a dividend or capital contribution. | |||||||||
Current: | |||||||||
U.S. federal | $ | 361 | 369 | 313 | |||||
State and local | 22 | 23 | 28 | ||||||
Foreign jurisdiction | 78 | 136 | 117 | ||||||
Total | 461 | 528 | 458 | ||||||
Deferred: | |||||||||
U.S. federal | (107 | ) | (121 | ) | (97 | ) | |||
State and local | (7 | ) | (7 | ) | (15 | ) | |||
Foreign jurisdiction | 6 | (6 | ) | (4 | ) | ||||
Total | (108 | ) | (134 | ) | (116 | ) | |||
Total income tax expense | $ | 353 | 394 | 342 | |||||
Pre-tax income was as follows: | |||||||||
Years ended December 31, | |||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||
QVC-U.S. | $ | 824 | 865 | 785 | |||||
QVC-Japan | 181 | 253 | 199 | ||||||
QVC-Germany | 18 | 29 | 32 | ||||||
QVC-U.K. | 1 | (17 | ) | (2 | ) | ||||
QVC-Italy | (38 | ) | (49 | ) | (60 | ) | |||
Consolidated QVC | $ | 986 | 1,081 | 954 | |||||
Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following: | |||||||||
Years ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Provision at statutory rate | 35 | % | 35 | % | 35 | % | |||
State income taxes, net of federal benefit | 0.7 | % | 1 | % | 0.9 | % | |||
Foreign taxes | 0.6 | % | 1.3 | % | 1.3 | % | |||
Foreign earnings repatriation | (0.4 | )% | (1.1 | )% | (1.1 | )% | |||
Permanent differences | — | % | 0.1 | % | — | % | |||
Other, net | (0.1 | )% | 0.1 | % | (0.3 | )% | |||
Total income tax expense | 35.8 | % | 36.4 | % | 35.8 | % | |||
The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: | |||||||||
December 31, | |||||||||
(in millions) | 2013 | 2012 | |||||||
Deferred tax assets: | |||||||||
Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts | $ | 32 | 29 | ||||||
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 | 36 | 39 | |||||||
Allowance for sales returns | 39 | 33 | |||||||
Deferred compensation | 36 | 27 | |||||||
Unrecognized federal and state tax benefits | 29 | 31 | |||||||
Accrued liabilities | 25 | 29 | |||||||
Other | 36 | 42 | |||||||
Subtotal | 233 | 230 | |||||||
Valuation allowance | (1 | ) | (1 | ) | |||||
Total deferred tax assets | 232 | 229 | |||||||
Deferred tax liabilities: | |||||||||
Depreciation and amortization | (1,349 | ) | (1,455 | ) | |||||
Cumulative translation of foreign currencies | (47 | ) | (33 | ) | |||||
Total deferred tax liabilities | (1,396 | ) | (1,488 | ) | |||||
Net deferred tax liability | $ | (1,164 | ) | (1,259 | ) | ||||
In the above table, valuation allowances exist due, in part, to the uncertainty of whether or not the benefit of certain foreign tax credits will ultimately be utilized for income tax purposes. | |||||||||
The Company has recognized tax benefits from the exercise of employee stock options that reduced taxes payable and were credited to additional paid-in capital. The amount of the tax benefits is reported in the consolidated statements of equity. | |||||||||
The Company entered into a Tax Liability Allocation and Indemnification Agreement (the "Tax Agreement"), dated April 26, 2004, with Liberty. The Tax Agreement establishes the methodology for the calculation and payment of income taxes in connection with the consolidation of the Company with Liberty for income tax purposes. Generally, the Tax Agreement provides that the Company will pay Liberty an amount equal to the tax liability, if any, that it would have if it were to file as a consolidated group separate and apart from Liberty, with exceptions for the treatment and timing of certain items, including but not limited to deferred intercompany transactions, credits, and net operating and capital losses. To the extent that the separate company tax expense is different from the payment terms of the Tax Agreement, the difference is recorded as either a dividend or capital contribution. The differences recorded during the years ended December 31, 2013, 2012 and 2011 were $45 million, $47 million and $10 million in dividends, respectively, and related primarily to foreign tax credits recognized by QVC that are creditable under the Tax Agreement when and if utilized in Liberty's consolidated tax return. The amounts of the tax-related balance due to Liberty at December 31, 2013 and 2012 were $78 million and $70 million, respectively, and are included in accrued liabilities in the consolidated balance sheets. | |||||||||
The Company has provided for U.S. income taxes on the undistributed earnings of foreign subsidiaries. The Company expects the amount of foreign tax credits available on those undistributed earnings to offset the U.S. income tax liability and to result in an incremental benefit related to the increased utilization of foreign tax credits. The amount of the U.S. income tax benefit recorded in the years ended December 31, 2013, 2012 and 2011 on those undistributed earnings was $3 million, $12 million and $10 million, respectively. | |||||||||
A reconciliation of the 2013 beginning and ending amount of the liability for unrecognized tax benefits is as follows: | |||||||||
(in millions) | |||||||||
Balance at January 1, 2013 | 95 | ||||||||
Decreases related to prior year tax positions | (11 | ) | |||||||
Increases related to current year tax positions | 12 | ||||||||
Settlements | (7 | ) | |||||||
Balance at December 31, 2013 | 89 | ||||||||
Included in the balance of unrecognized tax benefits at December 31, 2013 are potential benefits of $58 million (net of a $31 million federal tax effect) that, if recognized, would affect the effective rate on income from continuing operations. | |||||||||
The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other income (expense) in the consolidated statements of operations. The Company did not have a material amount of interest accrued related to unrecognized tax benefits or tax penalties. | |||||||||
The Company has tax positions for which the amount of related unrecognized tax benefits could change during 2014. These include federal transfer pricing and nonfederal tax issues. The amount of unrecognized tax benefits related to these issues could have a net decrease of $24 million in 2014 as a result of potential settlements, lapsing of statute of limitations and revisions of settlement estimates. | |||||||||
The Company participates in a consolidated federal return filing with Liberty. As of December 31, 2013, the Company's tax years through 2009 are closed for federal income tax purposes, and the IRS has completed its examination of the Company's 2010, 2011, and 2012 tax years. The Company's 2013 tax year is being examined currently as part of the Liberty consolidated return under the IRS's Compliance Assurance Process ("CAP") program. The Company, or one of its subsidiaries, files income tax returns in various states and foreign jurisdictions. As of December 31, 2013, the Company, or one of its subsidiaries, was under examination in California, Minnesota, New Jersey, New York, the City of New York and Pennsylvania, as well as in Germany and the U.K. |
Commitments_and_Contingencies1
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Commitments and Contingencies | ' | ' |
Commitments and Contingencies | Commitments and Contingencies | |
The Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that the amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements. | The Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that the amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the consolidated financial statements. | |
Network and information systems, including the Internet and telecommunication systems, third party delivery services and other technologies are critical to our business activities. Substantially all our customer orders, fulfillment and delivery services are dependent upon the use of network and information systems, including the use of third party telecommunication and delivery service providers. If information systems including the Internet or telecommunication services are disrupted, or if the third party delivery services experience a disruption in their transportation delivery services, we could face a significant disruption in fulfilling our customer orders and shipment of our products. We have active disaster recovery programs in place to help mitigate risks associated with these critical business activities. | Network and information systems, including the Internet and telecommunication systems, third party delivery services and other technologies are critical to our business activities. Substantially all our customer orders, fulfillment and delivery services are dependent upon the use of network and information systems, including the use of third party telecommunication and delivery service providers. If information systems including the Internet or telecommunication services are disrupted, or if the third party delivery services experience a disruption in their transportation delivery services, we could face a significant disruption in fulfilling our customer orders and shipment of our products. We have active disaster recovery programs in place to help mitigate risks associated with these critical business activities. |
Business_Acquisitions_and_Inve
Business Acquisitions and Investments in Affiliates (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Business acquisitions and investments in affiliates [Abstract] | ' |
Equity method investments and joint ventures disclosure | ' |
Business Acquisitions and Investment in Affiliate | |
On February 21, 2012, the Company acquired all of the outstanding shares of Send the Trend, Inc. ("STT"). The Company believes that this transaction will strengthen its penetration in e-commerce due to STT's proprietary personalization software. | |
On December 31, 2012, the Company acquired substantially all of the assets of Oodle, Inc. ("Oodle"). Oodle provides a sophisticated technology platform that is expected to help us capitalize on the growing consumer trend of discovering new products via social media as well as grow our customer base and strengthen our brand as an innovative retailer. | |
On July 4, 2012, the Company entered into a joint venture with China Broadcasting Corporation, a limited liability company, owned by China National Radio (''CNR'') for a 49% interest in a CNR subsidiary, CNR Home Shopping Co., Ltd. (''CNRS''). The CNRS joint venture is accounted for as an equity method investment as a component of other noncurrent assets on the consolidated balance sheets and loss on investments on the consolidated statements of operations. CNRS operates a retailing business in China through a televised shopping channel with an associated website. CNRS is headquartered in Beijing, China. The joint venture's strategy is to combine CNRS' existing knowledge of the digital shopping market and consumers in China with QVC's global experience and know-how in multimedia retailing. | |
The aggregate purchase price for these business acquisitions and the investment in affiliate was $95 million. |
Assets_and_Liabilities_Measure3
Assets and Liabilities Measured at Fair Value | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||
Fair Value [Abstract] | ' | ' | ||||||||||||||||||
Fair value disclosures | ' | ' | ||||||||||||||||||
Assets and Liabilities Measured at Fair Value | Assets and Liabilities Measured at Fair Value | |||||||||||||||||||
For assets and liabilities required to be reported or disclosed at fair value, U.S. GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. | For assets and liabilities required to be reported or disclosed at fair value, U.S. GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. | |||||||||||||||||||
The Company's assets and liabilities measured or disclosed at fair value were as follows: | The Company's assets and liabilities measured or disclosed at fair value were as follows: | |||||||||||||||||||
Fair value measurements | Fair value measurements | |||||||||||||||||||
at June 30, 2014 using | at December 31, 2013 using | |||||||||||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | (in millions) | Total | Quoted prices | Significant | Significant | |||||||||||
in active | other | unobservable | in active | other | unobservable | |||||||||||||||
markets for | observable | inputs | markets for | observable | inputs | |||||||||||||||
identical | inputs | (Level 3) | identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | assets | (Level 2) | |||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||||
Cash equivalents | $ | 463 | 463 | — | — | Cash equivalents | $ | 342 | 342 | — | — | |||||||||
Long-term liabilities: | Long-term liabilities: | |||||||||||||||||||
Debt (note 6) | 4,071 | — | 4,071 | — | Debt (note 8) | 3,783 | — | 3,783 | — | |||||||||||
Fair value measurements | Fair value measurements | |||||||||||||||||||
at December 31, 2013 using | at December 31, 2012 using | |||||||||||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | (in millions) | Total | Quoted prices | Significant | Significant | |||||||||||
in active | other | unobservable | in active | other | unobservable | |||||||||||||||
markets for | observable | inputs | markets for | observable | inputs | |||||||||||||||
identical | inputs | (Level 3) | identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | assets | (Level 2) | |||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||||
Cash equivalents | $ | 342 | 342 | — | — | Cash equivalents | $ | 424 | 424 | — | — | |||||||||
Long-term liabilities: | Interest rate swap arrangements (note 8) | 1 | — | 1 | — | |||||||||||||||
Debt (note 6) | 3,783 | — | 3,783 | — | Current liabilities: | |||||||||||||||
The majority of the Company's Level 2 financial assets and liabilities are debt instruments with quoted market prices that are not considered to be traded on "active markets," as defined in U.S. GAAP. Accordingly, the financial instruments are reported in the foregoing tables as Level 2 fair value instruments. | Interest rate swap arrangements (note 8) | 13 | — | 13 | — | |||||||||||||||
Long-term liabilities: | ||||||||||||||||||||
Debt (note 8) | 3,626 | — | 3,626 | — | ||||||||||||||||
The majority of the Company's Level 2 financial assets and liabilities are debt instruments with quoted market prices that are not considered to be traded on "active markets," as defined in U.S. GAAP. Accordingly, the financial instruments are reported in the foregoing tables as Level 2 fair value instruments. | ||||||||||||||||||||
U.S. GAAP requires the incorporation of a credit risk valuation adjustment in the Company's fair value measurements to estimate the impact of both its own nonperformance risk and the nonperformance risk of its counterparties. The Company estimates credit risk associated with its own and its counterparties' nonperformance primarily by using observable credit default swap rates for terms similar to those of the remaining life of the instrument, adjusted for any master netting arrangements or other factors that provide an estimate of nonperformance risk. These are Level 3 inputs. However, as the credit risk valuation adjustments were not significant, the Company reported its interest rate swaps as Level 2. The counterparties to the Company's interest rate swap arrangements were all major international financial institutions. |
Information_about_QVCs_Operati7
Information about QVC's Operating Segments | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ' | |||||||||||||||||||||||||||||||
Segment reporting disclosure | ' | ' | |||||||||||||||||||||||||||||||
Information about QVC's Operating Segments | Information about QVC's Operating Segments | ||||||||||||||||||||||||||||||||
Each of the Company's operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the Internet and mobile applications in certain markets. The Company has operations in the United States, Japan, Germany, the United Kingdom and Italy. The Company has identified five reportable segments: the United States, Japan, Germany, the United Kingdom and Italy. | Each of the Company's operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the Internet and mobile applications in certain markets. The Company has operations in the U.S., Japan, Germany, the U.K. and Italy. As such, the Company has identified five reportable segments: the U.S., Japan, Germany, the U.K. and Italy. | ||||||||||||||||||||||||||||||||
The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units shipped and revenue or sales per subscriber equivalent. The Company defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its segments, including the ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among our businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization and stock-based compensation, that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP. | The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units shipped and revenue or sales per subscriber equivalent. The Company defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its segments, including the ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among our businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization and stock-based compensation, that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP. | ||||||||||||||||||||||||||||||||
Performance measures | Performance measures | ||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | Net | Adjusted | (in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | ||||||||||||||||||
revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | ||||||||||||||||||||
QVC-U.S. | $ | 1,352 | 325 | 1,312 | 320 | 2,657 | 626 | 2,609 | 611 | QVC-U.S. | $ | 5,844 | 1,352 | 5,585 | 1,292 | 5,412 | 1,225 | ||||||||||||||||
QVC-Japan | 223 | 43 | 260 | 57 | 457 | 90 | 516 | 111 | QVC-Japan | 1,024 | 212 | 1,247 | 279 | 1,127 | 241 | ||||||||||||||||||
QVC-Germany | 227 | 40 | 207 | 35 | 477 | 79 | 457 | 78 | QVC-Germany | 971 | 173 | 956 | 179 | 1,068 | 199 | ||||||||||||||||||
QVC-U.K. | 178 | 33 | 153 | 26 | 343 | 60 | 293 | 45 | QVC-U.K. | 657 | 118 | 641 | 104 | 626 | 111 | ||||||||||||||||||
QVC-Italy | 34 | (2 | ) | 29 | (4 | ) | 66 | (4 | ) | 60 | (7 | ) | QVC-Italy | 127 | (14 | ) | 87 | (26 | ) | 35 | (43 | ) | |||||||||||
Consolidated QVC | $ | 2,014 | 439 | 1,961 | 434 | 4,000 | 851 | 3,935 | 838 | Consolidated QVC | $ | 8,623 | 1,841 | 8,516 | 1,828 | 8,268 | 1,733 | ||||||||||||||||
Net revenue amounts by product category are not available from our general purpose financial statements. | Net revenue amounts by product category are not available from our general purpose financial statements. | ||||||||||||||||||||||||||||||||
Other information | Other information | ||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | (in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | ||||||||||||||||||
QVC-U.S. | $ | 14 | 99 | 14 | 91 | 27 | 192 | 27 | 179 | QVC-U.S. | $ | 55 | 362 | 51 | 338 | 52 | 376 | ||||||||||||||||
QVC-Japan | 4 | 2 | 5 | 2 | 9 | 4 | 8 | 4 | QVC-Japan | 23 | 9 | 16 | 10 | 29 | 12 | ||||||||||||||||||
QVC-Germany | 8 | 8 | 8 | 9 | 16 | 19 | 16 | 18 | QVC-Germany | 30 | 38 | 31 | 33 | 33 | 36 | ||||||||||||||||||
QVC-U.K. | 4 | 3 | 5 | 3 | 8 | 7 | 9 | 6 | QVC-U.K. | 12 | 14 | 21 | 12 | 13 | 11 | ||||||||||||||||||
QVC-Italy | 3 | — | 1 | 2 | 6 | 1 | 3 | 4 | QVC-Italy | 7 | 8 | 7 | 7 | 8 | 4 | ||||||||||||||||||
Consolidated QVC | $ | 33 | 112 | 33 | 107 | 66 | 223 | 63 | 211 | Consolidated QVC | $ | 127 | 431 | 126 | 400 | 135 | 439 | ||||||||||||||||
Six months ended June 30, | Year ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(in millions) | Total | Capital | Total | Capital | (in millions) | Total | Capital | Total | Capital | ||||||||||||||||||||||||
assets | expenditures, net | assets | expenditures, net | assets | expenditures | assets | expenditures | ||||||||||||||||||||||||||
QVC-U.S. | $ | 9,933 | 38 | 10,322 | 123 | QVC-U.S. | $ | 10,322 | 123 | 10,541 | 88 | ||||||||||||||||||||||
QVC-Japan | 732 | (1 | ) | 732 | 16 | QVC-Japan | 732 | 16 | 969 | 105 | |||||||||||||||||||||||
QVC-Germany | 1,103 | 4 | 1,109 | 28 | QVC-Germany | 1,109 | 28 | 1,064 | 25 | ||||||||||||||||||||||||
QVC-U.K. | 628 | 6 | 613 | 16 | QVC-U.K. | 613 | 16 | 619 | 22 | ||||||||||||||||||||||||
QVC-Italy | 271 | 10 | 280 | 28 | QVC-Italy | 280 | 28 | 245 | 6 | ||||||||||||||||||||||||
Consolidated QVC | $ | 12,667 | 57 | 13,056 | 211 | Consolidated QVC | $ | 13,056 | 211 | 13,438 | 246 | ||||||||||||||||||||||
Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | ||||||||||||||||||||||||||||||||
June 30, | December 31, | December 31, | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
QVC-U.S. | $ | 448 | 429 | ||||||||||||||||||||||||||||||
QVC-U.S. | $ | 436 | 448 | ||||||||||||||||||||||||||||||
QVC-Japan | 220 | 280 | |||||||||||||||||||||||||||||||
QVC-Japan | 218 | 220 | |||||||||||||||||||||||||||||||
QVC-Germany | 244 | 247 | |||||||||||||||||||||||||||||||
QVC-Germany | 225 | 244 | |||||||||||||||||||||||||||||||
QVC-U.K. | 129 | 128 | |||||||||||||||||||||||||||||||
QVC-U.K. | 129 | 129 | |||||||||||||||||||||||||||||||
QVC-Italy | 65 | 47 | |||||||||||||||||||||||||||||||
QVC-Italy | 68 | 65 | |||||||||||||||||||||||||||||||
Consolidated QVC | $ | 1,106 | 1,131 | ||||||||||||||||||||||||||||||
Consolidated QVC | $ | 1,076 | 1,106 | ||||||||||||||||||||||||||||||
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | |||||||||||||||||||||||||||||||||
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | |||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | (in millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Adjusted OIBDA | $ | 1,841 | 1,828 | 1,733 | |||||||||||||||||||||||||||||
Adjusted OIBDA | $ | 439 | 434 | 851 | 838 | ||||||||||||||||||||||||||||
Stock‑based compensation | (38 | ) | (34 | ) | (22 | ) | |||||||||||||||||||||||||||
Stock‑based compensation | (10 | ) | (9 | ) | (18 | ) | (19 | ) | Depreciation and amortization | (558 | ) | (526 | ) | (574 | ) | ||||||||||||||||||
Depreciation and amortization | (145 | ) | (140 | ) | (289 | ) | (274 | ) | Equity in losses of investee | (4 | ) | (4 | ) | (2 | ) | ||||||||||||||||||
Equity in losses of investee | (2 | ) | (2 | ) | (3 | ) | (1 | ) | Gains on financial instruments | 15 | 48 | 50 | |||||||||||||||||||||
Gains on financial instruments | — | 3 | — | 15 | |||||||||||||||||||||||||||||
Interest expense, net | (214 | ) | (233 | ) | (229 | ) | |||||||||||||||||||||||||||
Interest expense, net | (60 | ) | (50 | ) | (122 | ) | (113 | ) | Foreign currency gain (loss) | 1 | 2 | (2 | ) | ||||||||||||||||||||
Foreign currency gain (loss) | 1 | — | — | (1 | ) | ||||||||||||||||||||||||||||
Loss on extinguishment of debt | (57 | ) | — | — | |||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | (16 | ) | — | (57 | ) | |||||||||||||||||||||||||||
Income before income taxes | $ | 986 | 1,081 | 954 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 223 | 220 | 419 | 388 | ||||||||||||||||||||||||||||
Other_Comprehensive_Income1
Other Comprehensive Income | 6 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ||||||||||||||
Comprehensive Income (Loss) | ' | ' | ||||||||||||||
Other Comprehensive Income | Other Comprehensive Income | |||||||||||||||
The change in the component of accumulated other comprehensive income, net of taxes ("AOCI"), is summarized as follows: | The change in the component of accumulated other comprehensive income, net of taxes ("AOCI"), is summarized as follows: | |||||||||||||||
(in millions) | Foreign currency translation adjustments | AOCI | (in millions) | Foreign currency translation adjustments | AOCI | |||||||||||
Balance at January 1, 2013 | $ | 186 | 186 | Balance at January 1, 2011 | $ | 209 | 209 | |||||||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (88 | ) | (88 | ) | Other comprehensive loss attributable to QVC, Inc. shareholder | (15 | ) | (15 | ) | |||||||
Balance at June 30, 2013 | 98 | 98 | Balance at December 31, 2011 | 194 | 194 | |||||||||||
Other comprehensive loss attributable to QVC, Inc. shareholder | (8 | ) | (8 | ) | ||||||||||||
Balance at January 1, 2014 | $ | 139 | 139 | Balance at December 31, 2012 | 186 | 186 | ||||||||||
Other comprehensive income attributable to QVC, Inc. stockholder | 15 | 15 | Other comprehensive loss attributable to QVC, Inc. shareholder | (47 | ) | (47 | ) | |||||||||
Balance at December 31, 2013 | 139 | 139 | ||||||||||||||
Balance at June 30, 2014 | 154 | 154 | ||||||||||||||
The component of other comprehensive income is reflected in QVC's consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive income: | ||||||||||||||||
The component of other comprehensive income is reflected in QVC's condensed consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive income: | ||||||||||||||||
(in millions) | Before-tax amount | Tax (expense) benefit | Net-of-tax amount | |||||||||||||
(in millions) | Before-tax amount | Tax (expense) benefit | Net-of-tax amount | |||||||||||||
Year ended December 31, 2013: | ||||||||||||||||
Three months ended June 30, 2014: | ||||||||||||||||
Foreign currency translation adjustments | $ | (64 | ) | (8 | ) | (72 | ) | |||||||||
Foreign currency translation adjustments | $ | 2 | — | 2 | Other comprehensive loss | (64 | ) | (8 | ) | (72 | ) | |||||
Other comprehensive income | 2 | — | 2 | Year ended December 31, 2012: | ||||||||||||
Foreign currency translation adjustments | $ | (48 | ) | 21 | (27 | ) | ||||||||||
Three months ended June 30, 2013: | ||||||||||||||||
Other comprehensive loss | (48 | ) | 21 | (27 | ) | |||||||||||
Foreign currency translation adjustments | $ | (13 | ) | (3 | ) | (16 | ) | |||||||||
Other comprehensive loss | (13 | ) | (3 | ) | (16 | ) | ||||||||||
Year ended December 31, 2011: | ||||||||||||||||
Six months ended June 30, 2014: | ||||||||||||||||
Foreign currency translation adjustments | $ | (20 | ) | 10 | (10 | ) | ||||||||||
Foreign currency translation adjustments | $ | 21 | (3 | ) | 18 | |||||||||||
Other comprehensive loss | (20 | ) | 10 | (10 | ) | |||||||||||
Other comprehensive income (loss) | 21 | (3 | ) | 18 | ||||||||||||
Six months ended June 30, 2013: | ||||||||||||||||
Foreign currency translation adjustments | $ | (129 | ) | 22 | (107 | ) | ||||||||||
Other comprehensive (loss) income | (129 | ) | 22 | (107 | ) | |||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
Employee Benefit Plans | |
In certain markets, QVC sponsors defined contribution plans, which provide employees an opportunity to make contributions to a trust for investment in a variety of securities. Generally, the Company makes matching contributions to the plans based on a percentage of the amount contributed by employees. The Company's cash contributions to the plans were $19 million, $16 million and $16 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Subsequent_Events1
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' | ' |
Subsequent Events | ' | ' |
Subsequent Event | ||
Subsequent Events | QVC declared and paid dividends to Liberty in the amount of $108 million subsequent to December 31, 2013. | |
QVC declared and paid dividends to Liberty in the amount of $1.4 billion subsequent to June 30, 2014. | ||
GuarantorNonGuarantor_Subsidia7
Guarantor/Non-Guarantor Subsidiary Financial Information | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | ' | ' | ||||||||||||||||||||||
Guarantor/Non-guarantor Subsidiary Financial Information | ' | ' | ||||||||||||||||||||||
Guarantor/Non-guarantor Subsidiary Financial Information | (19) Guarantor/Non-guarantor Subsidiary Financial Information | |||||||||||||||||||||||
The following information contains the condensed consolidating financial statements for the Company, the parent on a stand-alone basis (QVC, Inc.), the combined subsidiary guarantors (Affiliate Relations Holdings, Inc.; Affiliate Investment, Inc.; AMI 2, Inc.; ER Marks, Inc.; QVC International LLC; QVC Rocky Mount, Inc. and QVC San Antonio, LLC) and the combined non-guarantor subsidiaries pursuant to Rule 3-10 of Regulation S-X. Certain non-guarantor subsidiaries are majority-owned by QVC International LLC, which is a guarantor subsidiary. | The following information contains the consolidating financial statements for the Company, the parent on a stand-alone basis (QVC, Inc.), the combined subsidiary guarantors (Affiliate Relations Holdings, Inc.; Affiliate Investment, Inc.; AMI 2, Inc.; ER Marks, Inc.; QVC International LLC; QVC Rocky Mount, Inc. and QVC San Antonio, LLC) and the combined non-guarantor subsidiaries pursuant to Rule 3-10 of Regulation S-X. Certain non-guarantor subsidiaries are majority-owned by QVC International LLC, which is a guarantor subsidiary. | |||||||||||||||||||||||
These condensed consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the Company's condensed consolidated financial statements. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, such as management fees, royalty revenue and expense, interest income and expense and gains on intercompany asset transfers. Goodwill and other intangible assets have been allocated to the subsidiaries based on management’s estimates. Certain costs have been partially allocated to all of the subsidiaries of the Company. | These consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the Company's consolidated financial statements. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, such as management fees, royalty revenue and expense and interest income and expense. Goodwill and other intangible assets have been allocated to the subsidiaries based on management’s estimates. Certain costs have been partially allocated to all of the subsidiaries of the Company. | |||||||||||||||||||||||
During the three months ended June 30, 2014, an intangible asset held by certain non-guarantor subsidiaries was sold to QVC, Inc. resulting in a gain of $20 million reflected in intercompany interest and other income for the non-guarantor subsidiaries and also included in equity in earnings of subsidiaries for the subsidiary guarantors. The gain is eliminated in the eliminations column. The impact of these earnings has been eliminated in the presentation of intangible assets and equity in earnings of subsidiaries of the parent company. | The subsidiary guarantors are 100% owned by the Company. All guarantees are full and unconditional and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its U.S. subsidiaries, including the guarantors, by dividend or loan. The Company has not presented separate notes and other disclosures concerning the subsidiary guarantors as the Company has determined that such material information is available in the notes to the Company's consolidated financial statements. | |||||||||||||||||||||||
The subsidiary guarantors are 100% owned by the Company. All guarantees are full and unconditional and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its U.S. subsidiaries, including the guarantors, by dividend or loan. The Company has not presented separate notes and other disclosures concerning the subsidiary guarantors as the Company has determined that such material information is available in the notes to the Company's condensed consolidated financial statements. | The Company adjusted the previously reported consolidating financial statements to correctly classify transactions among QVC Inc., the combined subsidiary guarantors and the combined non-guarantor subsidiaries. | |||||||||||||||||||||||
The Company adjusted the previously reported consolidating financial statements to correctly classify transactions among QVC Inc., the combined subsidiary guarantors and the combined non-guarantor subsidiaries. | The adjustments to the consolidating balance sheets: | |||||||||||||||||||||||
The adjustments to the condensed consolidating statements of operations: | ||||||||||||||||||||||||
• | increased intercompany accounts receivable of the combined non-guarantor subsidiaries by $650 million and increased intercompany accounts payable of QVC, Inc. by $1,055 million related to cumulative revenue net of cumulative cost of goods sold and cumulative operating expenses, which have been attributed from QVC, Inc. to the combined non-guarantor subsidiaries as of December 31, 2012; and | |||||||||||||||||||||||
• | attributed net revenue of $58 million and operating expenses of $9 million from QVC, Inc. to the combined non-guarantor subsidiaries for the three months ended June 30, 2013; | |||||||||||||||||||||||
• | increased shareholder’s equity for the combined subsidiary guarantors by $405 million and combined non-guarantor subsidiaries by $650 million with an equal and offsetting increase in the investment in subsidiaries of QVC, Inc. and its corresponding elimination as of December 31, 2012. | |||||||||||||||||||||||
• | recognized equal and offsetting increases in the equity in earnings of subsidiaries of QVC, Inc. with a corresponding elimination for the three months ended June 30, 2013; | The adjustments to the consolidating statements of operations: | ||||||||||||||||||||||
• | attributed net revenue of $112 million, cost of goods sold of $11 million and operating expenses of $17 million from QVC, Inc. to the combined non-guarantor subsidiaries for the six months ended June 30, 2013; and | • | attributed $231 million and $199 million of revenue, $69 million and $73 million of cost of goods sold and $33 million and $25 million in operating expenses for the years ended 2012 and 2011, respectively, from QVC, Inc. to the combined non-guarantor subsidiaries and recognized equal and offsetting increases in the equity in earnings of subsidiaries of QVC, Inc.; and | |||||||||||||||||||||
• | recognized equal and offsetting increases in the equity in earnings of subsidiaries of QVC, Inc. with a corresponding elimination for the six months ended June 30, 2013. | • | recognized $63 million and $52 million for the years ended 2012 and 2011, respectively, in net income attributable to noncontrolling interests of QVC, Inc. and eliminated that income in consolidation. | |||||||||||||||||||||
The adjustments to the condensed consolidating statements of cash flows for the six months ended June 30, 2013: | The adjustments to the condensed consolidating statements of cash flows: | |||||||||||||||||||||||
• | attributed net cash provided by operating activities of $83 million from QVC, Inc. to the combined non-guarantor subsidiaries primarily related to revenue net of cost of goods sold and operating expenses; | • | attributed net cash provided by operating activities from QVC, Inc. to the combined non-guarantor subsidiaries primarily related to revenue net of cost of goods sold and operating expenses of $156 million and $103 million for the years ended 2012 and 2011, respectively; | |||||||||||||||||||||
• | decreased net cash provided by investing activities of $34 million of QVC, Inc. with an equal and offsetting elimination; and | • | increased net cash provided by the investing activities of QVC, Inc. of $101 million for the year ended 2012, decreased net cash used in the investing activities of QVC, Inc. of $37 million for the year ended 2011 and increased net cash provided by the investing activities of the combined subsidiary guarantors of $49 million for the year ended 2012, all with equal and offsetting eliminations; and | |||||||||||||||||||||
• | increased net cash provided by financing activities of $117 million of QVC, Inc. and decreased net cash used in financing activities of $83 million of the non-guarantor subsidiaries, all with equal and offsetting eliminations. | • | increased net cash provided by the financing activities of QVC, Inc. of $55 million and $140 million for the years ended 2012 and 2011, respectively, decreased net cash used in the financing activities of the combined subsidiary guarantors of $48 million for the year ended 2012 and decreased net cash used in the financing activities of the non-guarantor subsidiaries of $152 million and $106 million for the years ended 2012 and 2011, respectively, all with equal and offsetting eliminations. | |||||||||||||||||||||
The adjustments had no impact to the Company's condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statements of comprehensive income, condensed consolidated statements of changes in equity or condensed consolidated statements of cash flows for any current and previously reported period. | The adjustments had no impact to the Company's consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income, consolidated statements of changes in equity or consolidated statements of cash flows for any current and previously reported period. | |||||||||||||||||||||||
The effect of the adjustment on equity as of January 1, 2012 was as follows: | ||||||||||||||||||||||||
Condensed consolidating balance sheets | ||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
June 30, 2014 | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | As previously reported | $ | 7,890 | 3,465 | 1,716 | (5,052 | ) | 8,019 | |||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Assets | Adjustment | — | 450 | 465 | (915 | ) | — | |||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Adjusted | $ | 7,890 | 3,915 | 2,181 | (5,967 | ) | 8,019 | |||||||||||||||||
Cash and cash equivalents | $ | 18 | 162 | 368 | — | 548 | ||||||||||||||||||
Consolidating balance sheets | ||||||||||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||||||||||||||
Accounts receivable, net | 490 | — | 266 | — | 756 | December 31, 2013 | ||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
Inventories | 725 | — | 264 | — | 989 | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Deferred income taxes | 147 | — | 18 | — | 165 | Assets | ||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Prepaid expenses | 28 | — | 29 | — | 57 | |||||||||||||||||||
Cash and cash equivalents | $ | 78 | 133 | 246 | — | 457 | ||||||||||||||||||
Total current assets | 1,419 | 162 | 948 | — | 2,529 | |||||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||||||||||||||
Property and equipment, net | 253 | 66 | 757 | — | 1,076 | |||||||||||||||||||
Accounts receivable, net | 816 | — | 295 | — | 1,111 | |||||||||||||||||||
Cable and satellite television distribution rights, net | — | 441 | 99 | — | 540 | |||||||||||||||||||
Inventories | 684 | — | 247 | — | 931 | |||||||||||||||||||
Goodwill | 4,169 | — | 1,041 | — | 5,210 | |||||||||||||||||||
Deferred income taxes | 146 | — | 16 | — | 162 | |||||||||||||||||||
Other intangible assets, net | 1,092 | 2,049 | 102 | — | 3,243 | |||||||||||||||||||
Prepaid expenses | 20 | — | 27 | — | 47 | |||||||||||||||||||
Other noncurrent assets | 9 | — | 60 | — | 69 | |||||||||||||||||||
Total current assets | 1,755 | 133 | 834 | — | 2,722 | |||||||||||||||||||
Investments in subsidiaries | 4,893 | 1,601 | — | (6,494 | ) | — | ||||||||||||||||||
Property, plant and equipment, net | 265 | 67 | 774 | — | 1,106 | |||||||||||||||||||
Total assets | $ | 11,835 | 4,319 | 3,007 | (6,494 | ) | 12,667 | |||||||||||||||||
Cable and satellite television distribution rights, net | — | 510 | 114 | — | 624 | |||||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Current liabilities: | Goodwill | 4,169 | — | 1,028 | — | 5,197 | ||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 9 | — | 11 | Other intangible assets, net | 1,128 | 2,050 | 158 | — | 3,336 | ||||||||||||
Accounts payable-trade | 275 | — | 195 | — | 470 | Other noncurrent assets | 8 | — | 63 | — | 71 | |||||||||||||
Accrued liabilities | 150 | 86 | 507 | — | 743 | Investments in subsidiaries | 4,894 | 1,628 | — | (6,522 | ) | — | ||||||||||||
Intercompany accounts payable (receivable) | 1,084 | (814 | ) | (270 | ) | — | — | Total assets | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | |||||||||
Total current liabilities | 1,511 | (728 | ) | 441 | — | 1,224 | Liabilities and equity | |||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Long-term portion of debt and capital lease obligations | 3,886 | — | 51 | — | 3,937 | |||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 11 | — | 13 | ||||||||||||||||||
Deferred compensation | 14 | — | — | — | 14 | |||||||||||||||||||
Accounts payable-trade | 266 | — | 159 | — | 425 | |||||||||||||||||||
Deferred income taxes | 319 | 901 | 3 | — | 1,223 | |||||||||||||||||||
Accrued liabilities | 463 | 96 | 470 | — | 1,029 | |||||||||||||||||||
Other long-term liabilities | 109 | — | 48 | — | 157 | |||||||||||||||||||
Intercompany accounts payable (receivable) | 1,019 | (879 | ) | (140 | ) | — | — | |||||||||||||||||
Total liabilities | 5,839 | 173 | 543 | — | 6,555 | |||||||||||||||||||
Total current liabilities | 1,750 | (783 | ) | 500 | — | 1,467 | ||||||||||||||||||
Equity: | ||||||||||||||||||||||||
Long-term portion of debt and capital lease obligations | 3,745 | — | 55 | — | 3,800 | |||||||||||||||||||
QVC, Inc. stockholder's equity | 5,996 | 4,146 | 2,348 | (6,494 | ) | 5,996 | ||||||||||||||||||
Deferred compensation | 13 | — | 1 | — | 14 | |||||||||||||||||||
Noncontrolling interest | — | — | 116 | — | 116 | |||||||||||||||||||
Deferred income taxes | 399 | 923 | 4 | — | 1,326 | |||||||||||||||||||
Total equity | 5,996 | 4,146 | 2,464 | (6,494 | ) | 6,112 | ||||||||||||||||||
Other long-term liabilities | 90 | — | 18 | — | 108 | |||||||||||||||||||
Total liabilities and equity | $ | 11,835 | 4,319 | 3,007 | (6,494 | ) | 12,667 | |||||||||||||||||
Total liabilities | 5,997 | 140 | 578 | — | 6,715 | |||||||||||||||||||
Condensed consolidating balance sheets | Equity: | |||||||||||||||||||||||
QVC, Inc. shareholder's equity | 6,222 | 4,248 | 2,274 | (6,522 | ) | 6,222 | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | Noncontrolling interest | — | — | 119 | — | 119 | |||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | Total equity | 6,222 | 4,248 | 2,393 | (6,522 | ) | 6,341 | ||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets: | Total liabilities and equity | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | ||||||||||||||||
Cash and cash equivalents | $ | 78 | 133 | 246 | — | 457 | Consolidating balance sheets - Adjusted | |||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Accounts receivable, net | 816 | — | 295 | — | 1,111 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Inventories | 684 | — | 247 | — | 931 | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||
Assets | ||||||||||||||||||||||||
Deferred income taxes | 146 | — | 16 | — | 162 | Current assets: | ||||||||||||||||||
Prepaid expenses | 20 | — | 27 | — | 47 | Cash and cash equivalents | $ | 75 | 165 | 300 | — | 540 | ||||||||||||
Total current assets | 1,755 | 133 | 834 | — | 2,722 | Restricted cash | 13 | — | 2 | — | 15 | |||||||||||||
Property and equipment, net | 265 | 67 | 774 | — | 1,106 | Accounts receivable, net | 747 | — | 308 | — | 1,055 | |||||||||||||
Cable and satellite television distribution rights, net | — | 510 | 114 | — | 624 | Inventories | 691 | — | 218 | — | 909 | |||||||||||||
Goodwill | 4,169 | — | 1,028 | — | 5,197 | Deferred income taxes | 131 | — | 20 | — | 151 | |||||||||||||
Other intangible assets, net | 1,128 | 2,050 | 158 | — | 3,336 | Prepaid expenses | 19 | — | 34 | — | 53 | |||||||||||||
Other noncurrent assets | 8 | — | 63 | — | 71 | Total current assets | 1,676 | 165 | 882 | — | 2,723 | |||||||||||||
Investments in subsidiaries | 4,894 | 1,628 | — | (6,522 | ) | — | Property, plant and equipment, net | 247 | 67 | 817 | — | 1,131 | ||||||||||||
Total assets | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | Cable and satellite television distribution rights, net | — | 618 | 146 | — | 764 | |||||||||||
Liabilities and equity | Goodwill | 4,169 | — | 1,065 | — | 5,234 | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Other intangible assets, net | 1,280 | 2,049 | 180 | — | 3,509 | |||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 11 | — | 13 | ||||||||||||||||||
Other noncurrent assets | 14 | — | 63 | — | 77 | |||||||||||||||||||
Accounts payable-trade | 336 | — | 158 | — | 494 | |||||||||||||||||||
Investments in subsidiaries | 4,844 | 1,838 | — | (6,682 | ) | — | ||||||||||||||||||
Accrued liabilities | 393 | 96 | 471 | — | 960 | |||||||||||||||||||
Total assets | $ | 12,230 | 4,737 | 3,153 | (6,682 | ) | 13,438 | |||||||||||||||||
Intercompany accounts payable (receivable) | 1,019 | (879 | ) | (140 | ) | — | — | |||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Total current liabilities | 1,750 | (783 | ) | 500 | — | 1,467 | Current liabilities: | |||||||||||||||||
Long-term portion of debt and capital lease obligations | 3,745 | — | 55 | — | 3,800 | Current portion of debt and capital lease obligations | $ | 2 | — | 10 | — | 12 | ||||||||||||
Deferred compensation | 13 | — | 1 | — | 14 | Accounts payable-trade | 324 | — | 242 | — | 566 | |||||||||||||
Deferred income taxes | 399 | 923 | 4 | — | 1,326 | Accrued liabilities | 402 | 106 | 447 | — | 955 | |||||||||||||
Other long-term liabilities | 90 | — | 18 | — | 108 | Intercompany accounts payable (receivable) | 829 | (816 | ) | (13 | ) | — | — | |||||||||||
Total liabilities | 5,997 | 140 | 578 | — | 6,715 | Total current liabilities | 1,557 | (710 | ) | 686 | — | 1,533 | ||||||||||||
Equity: | Long-term portion of debt and capital lease obligations | 3,404 | — | 61 | — | 3,465 | ||||||||||||||||||
QVC, Inc. stockholder's equity | 6,222 | 4,248 | 2,274 | (6,522 | ) | 6,222 | Deferred compensation | 11 | — | 1 | — | 12 | ||||||||||||
Noncontrolling interest | — | — | 119 | — | 119 | Deferred income taxes | 431 | 964 | 15 | — | 1,410 | |||||||||||||
Total equity | 6,222 | 4,248 | 2,393 | (6,522 | ) | 6,341 | Other long-term liabilities | 137 | 17 | 30 | — | 184 | ||||||||||||
Total liabilities and equity | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | Total liabilities | 5,540 | 271 | 793 | — | 6,604 | |||||||||||
Equity: | ||||||||||||||||||||||||
Condensed consolidating statements of operations | ||||||||||||||||||||||||
QVC, Inc. shareholder's equity | 6,690 | 4,466 | 2,216 | (6,682 | ) | 6,690 | ||||||||||||||||||
Three months ended June 30, 2014 | Noncontrolling interest | — | — | 144 | — | 144 | ||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Total equity | 6,690 | 4,466 | 2,360 | (6,682 | ) | 6,834 | ||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net revenue | $ | 1,368 | 187 | 692 | (233 | ) | 2,014 | Total liabilities and equity | $ | 12,230 | 4,737 | 3,153 | (6,682 | ) | 13,438 | |||||||||
Cost of goods sold | 850 | 23 | 432 | (55 | ) | 1,250 | Consolidating statements of operations | |||||||||||||||||
Gross profit | 518 | 164 | 260 | (178 | ) | 764 | ||||||||||||||||||
Year ended December, 2013 | ||||||||||||||||||||||||
Operating expenses: | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Operating | 42 | 49 | 89 | — | 180 | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||
Net revenue | $ | 5,914 | 841 | 2,914 | (1,046 | ) | 8,623 | |||||||||||||||||
Selling, general and administrative, including stock-based compensation | 243 | 1 | 89 | (178 | ) | 155 | ||||||||||||||||||
Cost of goods sold | 3,804 | 107 | 1,831 | (277 | ) | 5,465 | ||||||||||||||||||
Depreciation | 10 | 1 | 22 | — | 33 | |||||||||||||||||||
Gross profit | 2,110 | 734 | 1,083 | (769 | ) | 3,158 | ||||||||||||||||||
Amortization | 58 | 38 | 16 | — | 112 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Intercompany management expense (income) | 20 | (5 | ) | (15 | ) | — | — | |||||||||||||||||
Operating | 168 | 214 | 358 | — | 740 | |||||||||||||||||||
373 | 84 | 201 | (178 | ) | 480 | |||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 1,028 | — | 356 | (769 | ) | 615 | ||||||||||||||||||
Operating income | 145 | 80 | 59 | — | 284 | |||||||||||||||||||
Depreciation | 38 | 6 | 83 | — | 127 | |||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
Amortization of intangible assets | 204 | 146 | 81 | — | 431 | |||||||||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Intercompany management expense (income) | 50 | 1 | (51 | ) | — | — | ||||||||||||||||||
Interest expense, net | (60 | ) | — | — | — | (60 | ) | |||||||||||||||||
1,488 | 367 | 827 | (769 | ) | 1,913 | |||||||||||||||||||
Foreign currency (loss) gain | (1 | ) | — | 2 | — | 1 | ||||||||||||||||||
Operating income | 622 | 367 | 256 | — | 1,245 | |||||||||||||||||||
Intercompany interest and other (expense) income | (5 | ) | 13 | 12 | (20 | ) | — | |||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
(66 | ) | 13 | 12 | (20 | ) | (61 | ) | |||||||||||||||||
Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||
Income before income taxes | 79 | 93 | 71 | (20 | ) | 223 | ||||||||||||||||||
Gains on financial instruments | 12 | — | 3 | — | 15 | |||||||||||||||||||
Income tax expense | (27 | ) | (28 | ) | (28 | ) | — | (83 | ) | |||||||||||||||
Interest expense, net | (214 | ) | — | — | — | (214 | ) | |||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 88 | 29 | — | (117 | ) | — | ||||||||||||||||||
Foreign currency (loss) gain | (13 | ) | — | 14 | — | 1 | ||||||||||||||||||
Net income | 140 | 94 | 43 | (137 | ) | 140 | ||||||||||||||||||
Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | |||||||||||||||||
Less net income attributable to the noncontrolling interest | (10 | ) | — | (10 | ) | 10 | (10 | ) | ||||||||||||||||
Intercompany interest (expense) income | (16 | ) | 51 | (35 | ) | — | — | |||||||||||||||||
Net income attributable to QVC, Inc. stockholder | $ | 130 | 94 | 33 | (127 | ) | 130 | |||||||||||||||||
(288 | ) | 51 | (22 | ) | — | (259 | ) | |||||||||||||||||
Condensed consolidating statements of operations - Adjusted | Income before income taxes | 334 | 418 | 234 | — | 986 | ||||||||||||||||||
Income tax expense | (119 | ) | (132 | ) | (102 | ) | — | (353 | ) | |||||||||||||||
Three months ended June 30, 2013 | ||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | Equity in earnings of subsidiaries, net of tax | 418 | 67 | — | (485 | ) | — | ||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | Net income | 633 | 353 | 132 | (485 | ) | 633 | ||||||||||||||
Net revenue | $ | 1,326 | 182 | 681 | (228 | ) | 1,961 | |||||||||||||||||
Less net income attributable to the noncontrolling interest | (45 | ) | — | (45 | ) | 45 | (45 | ) | ||||||||||||||||
Cost of goods sold | 836 | 23 | 427 | (59 | ) | 1,227 | ||||||||||||||||||
Net income attributable to QVC, Inc. shareholder | $ | 588 | 353 | 87 | (440 | ) | 588 | |||||||||||||||||
Gross profit | 490 | 159 | 254 | (169 | ) | 734 | ||||||||||||||||||
Consolidating statements of operations - Adjusted | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Operating | 38 | 48 | 85 | — | 171 | Year ended December 31, 2012 | ||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 227 | — | 80 | (169 | ) | 138 | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Depreciation | 9 | 2 | 22 | — | 33 | Net revenue | $ | 5,653 | 819 | 3,078 | (1,034 | ) | 8,516 | |||||||||||
Amortization | 51 | 36 | 20 | — | 107 | Cost of goods sold | 3,644 | 116 | 1,941 | (282 | ) | 5,419 | ||||||||||||
Intercompany management expense (income) | 15 | (4 | ) | (11 | ) | — | — | Gross profit | 2,009 | 703 | 1,137 | (752 | ) | 3,097 | ||||||||||
340 | 82 | 196 | (169 | ) | 449 | Operating expenses: | ||||||||||||||||||
Operating income | 150 | 77 | 58 | — | 285 | Operating | 140 | 206 | 369 | — | 715 | |||||||||||||
Other (expense) income: | Selling, general and administrative, including stock-based compensation | 1,002 | 1 | 337 | (752 | ) | 588 | |||||||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | Depreciation | 35 | 4 | 87 | — | 126 | |||||||||||
Gains on financial instruments | — | — | 3 | — | 3 | Amortization of intangible assets | 204 | 130 | 66 | — | 400 | |||||||||||||
Interest (expense) income, net | (50 | ) | (1 | ) | 1 | — | (50 | ) | Intercompany management expense (income) | 60 | (14 | ) | (46 | ) | — | — | ||||||||
Foreign currency (loss) gain | (1 | ) | — | 1 | — | — | 1,441 | 327 | 813 | (752 | ) | 1,829 | ||||||||||||
Loss on extinguishment of debt | (16 | ) | — | — | — | (16 | ) | Operating income | 568 | 376 | 324 | — | 1,268 | |||||||||||
Intercompany interest and other (expense) income | (4 | ) | 12 | (8 | ) | — | — | Other (expense) income: | ||||||||||||||||
(71 | ) | 11 | (5 | ) | — | (65 | ) | Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | |||||||||
Income before income taxes | 79 | 88 | 53 | — | 220 | Gains on financial instruments | 48 | — | — | — | 48 | |||||||||||||
Income tax expense | (21 | ) | (32 | ) | (28 | ) | — | (81 | ) | Interest expense, net | (233 | ) | — | — | — | (233 | ) | |||||||
Equity in earnings of subsidiaries, net of tax | 81 | 11 | — | (92 | ) | — | Foreign currency (loss) gain | (10 | ) | 4 | 8 | — | 2 | |||||||||||
Net income | 139 | 67 | 25 | (92 | ) | 139 | Intercompany interest (expense) income | (13 | ) | 51 | (38 | ) | — | — | ||||||||||
Less net income attributable to the noncontrolling interest | (13 | ) | — | (13 | ) | 13 | (13 | ) | (208 | ) | 55 | (34 | ) | — | (187 | ) | ||||||||
Net income attributable to QVC, Inc. stockholder | $ | 126 | 67 | 12 | (79 | ) | 126 | Income before income taxes | 360 | 431 | 290 | — | 1,081 | |||||||||||
Income tax expense | (116 | ) | (141 | ) | (137 | ) | — | (394 | ) | |||||||||||||||
Condensed consolidating statements of operations | ||||||||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 443 | 93 | — | (536 | ) | — | ||||||||||||||||||
Six months ended June 30, 2014 | Net income | 687 | 383 | 153 | (536 | ) | 687 | |||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Less net income attributable to the noncontrolling interest | (63 | ) | — | (63 | ) | 63 | (63 | ) | ||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net revenue | $ | 2,692 | 364 | 1,399 | (455 | ) | 4,000 | Net income attributable to QVC, Inc. shareholder | $ | 624 | 383 | 90 | (473 | ) | 624 | |||||||||
Cost of goods sold | 1,692 | 48 | 878 | (112 | ) | 2,506 | Consolidating statements of operations - Adjusted | |||||||||||||||||
Gross profit | 1,000 | 316 | 521 | (343 | ) | 1,494 | ||||||||||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||||||
Operating expenses: | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Operating | 82 | 95 | 181 | — | 358 | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||
Net revenue | $ | 5,485 | 790 | 2,988 | (995 | ) | 8,268 | |||||||||||||||||
Selling, general and administrative, including stock-based compensation | 466 | (1 | ) | 181 | (343 | ) | 303 | |||||||||||||||||
Cost of goods sold | 3,507 | 120 | 1,906 | (255 | ) | 5,278 | ||||||||||||||||||
Depreciation | 19 | 3 | 44 | — | 66 | |||||||||||||||||||
Gross profit | 1,978 | 670 | 1,082 | (740 | ) | 2,990 | ||||||||||||||||||
Amortization | 110 | 77 | 36 | — | 223 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Intercompany management expense (income) | 40 | (8 | ) | (32 | ) | — | — | |||||||||||||||||
Operating | 166 | 201 | 377 | — | 744 | |||||||||||||||||||
717 | 166 | 410 | (343 | ) | 950 | |||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 947 | — | 328 | (740 | ) | 535 | ||||||||||||||||||
Operating income | 283 | 150 | 111 | — | 544 | |||||||||||||||||||
Depreciation | 36 | 4 | 95 | — | 135 | |||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
Amortization of intangible assets | 242 | 133 | 64 | — | 439 | |||||||||||||||||||
Equity in losses of investee | — | — | (3 | ) | — | (3 | ) | |||||||||||||||||
Intercompany management expense (income) | 89 | (27 | ) | (62 | ) | — | — | |||||||||||||||||
Interest expense, net | (113 | ) | — | (9 | ) | — | (122 | ) | ||||||||||||||||
1,480 | 311 | 802 | (740 | ) | 1,853 | |||||||||||||||||||
Foreign currency (loss) gain | (3 | ) | — | 3 | — | — | ||||||||||||||||||
Operating income | 498 | 359 | 280 | — | 1,137 | |||||||||||||||||||
Intercompany interest and other (expense) income | (10 | ) | 26 | 4 | (20 | ) | — | |||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
(126 | ) | 26 | (5 | ) | (20 | ) | (125 | ) | ||||||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Income before income taxes | 157 | 176 | 106 | (20 | ) | 419 | ||||||||||||||||||
Gains on financial instruments | 50 | — | — | — | 50 | |||||||||||||||||||
Income tax expense | (7 | ) | (52 | ) | (98 | ) | — | (157 | ) | |||||||||||||||
Interest (expense) income | (230 | ) | — | 1 | — | (229 | ) | |||||||||||||||||
Equity in earnings (losses) of subsidiaries, net of tax | 112 | (19 | ) | — | (93 | ) | — | |||||||||||||||||
Foreign currency (loss) gain | (3 | ) | (2 | ) | 3 | — | (2 | ) | ||||||||||||||||
Net income | 262 | 105 | 8 | (113 | ) | 262 | ||||||||||||||||||
Intercompany interest (expense) income | (9 | ) | 53 | (44 | ) | — | — | |||||||||||||||||
Less net income attributable to the noncontrolling interest | (19 | ) | — | (19 | ) | 19 | (19 | ) | ||||||||||||||||
(192 | ) | 51 | (42 | ) | — | (183 | ) | |||||||||||||||||
Net income (loss) attributable to QVC, Inc. stockholder | $ | 243 | 105 | (11 | ) | (94 | ) | 243 | ||||||||||||||||
Income before income taxes | 306 | 410 | 238 | — | 954 | |||||||||||||||||||
The increase in tax expense of the combined non-guarantor subsidiaries compared to the same period in the prior year was primarily due to an unfavorable tax audit settlement in one of our European subsidiaries. This also resulted in a tax benefit for QVC, Inc. as a result of the corresponding foreign tax credit in the U.S. | ||||||||||||||||||||||||
Income tax expense | (110 | ) | (124 | ) | (108 | ) | — | (342 | ) | |||||||||||||||
Condensed consolidating statements of operations - Adjusted | ||||||||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 416 | 70 | — | (486 | ) | — | ||||||||||||||||||
Six months ended June 30, 2013 | Net income | 612 | 356 | 130 | (486 | ) | 612 | |||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Less net income attributable to the noncontrolling interest | (52 | ) | — | (52 | ) | 52 | (52 | ) | ||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net revenue | $ | 2,640 | 365 | 1,389 | (459 | ) | 3,935 | Net income attributable to QVC, Inc. shareholder | $ | 560 | 356 | 78 | (434 | ) | 560 | |||||||||
Cost of goods sold | 1,679 | 49 | 871 | (120 | ) | 2,479 | Consolidating statements of comprehensive income | |||||||||||||||||
Gross profit | 961 | 316 | 518 | (339 | ) | 1,456 | ||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||
Operating expenses: | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Operating | 75 | 93 | 176 | — | 344 | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||
Net income | $ | 633 | 353 | 132 | (485 | ) | 633 | |||||||||||||||||
Selling, general and administrative, including stock-based compensation | 463 | — | 169 | (339 | ) | 293 | ||||||||||||||||||
Foreign currency translation adjustments | (72 | ) | — | (72 | ) | 72 | (72 | ) | ||||||||||||||||
Depreciation | 19 | 3 | 41 | — | 63 | |||||||||||||||||||
Total comprehensive income | 561 | 353 | 60 | (413 | ) | 561 | ||||||||||||||||||
Amortization | 102 | 70 | 39 | — | 211 | |||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (20 | ) | — | (20 | ) | 20 | (20 | ) | ||||||||||||||||
Intercompany management expense (income) | 32 | (7 | ) | (25 | ) | — | — | |||||||||||||||||
Comprehensive income attributable to QVC, Inc. shareholder | $ | 541 | 353 | 40 | (393 | ) | 541 | |||||||||||||||||
691 | 159 | 400 | (339 | ) | 911 | |||||||||||||||||||
Consolidating statements of comprehensive income - Adjusted | ||||||||||||||||||||||||
Operating income | 270 | 157 | 118 | — | 545 | |||||||||||||||||||
Other (expense) income: | Year ended December 31, 2012 | |||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
Equity in losses of investee | — | — | (1 | ) | — | (1 | ) | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Gains on financial instruments | 12 | — | 3 | — | 15 | Net income | $ | 687 | 383 | 153 | (536 | ) | 687 | |||||||||||
Interest expense, net | (112 | ) | (1 | ) | — | — | (113 | ) | Foreign currency translation adjustments | (27 | ) | — | (27 | ) | 27 | (27 | ) | |||||||
Foreign currency (loss) gain | (2 | ) | (1 | ) | 2 | — | (1 | ) | Total comprehensive income | 660 | 383 | 126 | (509 | ) | 660 | |||||||||
Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | Comprehensive income attributable to noncontrolling interest | (44 | ) | — | (44 | ) | 44 | (44 | ) | ||||||||
Intercompany interest and other (expense) income | (7 | ) | 25 | (18 | ) | — | — | Comprehensive income attributable to QVC, Inc. shareholder | $ | 616 | 383 | 82 | (465 | ) | 616 | |||||||||
(166 | ) | 23 | (14 | ) | — | (157 | ) | Consolidating statements of comprehensive income - Adjusted | ||||||||||||||||
Income before income taxes | 104 | 180 | 104 | — | 388 | |||||||||||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||||||
Income tax expense | (32 | ) | (60 | ) | (51 | ) | — | (143 | ) | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 173 | 26 | — | (199 | ) | — | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||
Net income | 612 | 356 | 130 | (486 | ) | 612 | ||||||||||||||||||
Net income | 245 | 146 | 53 | (199 | ) | 245 | ||||||||||||||||||
Foreign currency translation adjustments | (10 | ) | — | (10 | ) | 10 | (10 | ) | ||||||||||||||||
Less net income attributable to the noncontrolling interest | (25 | ) | — | (25 | ) | 25 | (25 | ) | ||||||||||||||||
Total comprehensive income | 602 | 356 | 120 | (476 | ) | 602 | ||||||||||||||||||
Net income attributable to QVC, Inc. stockholder | $ | 220 | 146 | 28 | (174 | ) | 220 | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (57 | ) | — | (57 | ) | 57 | (57 | ) | ||||||||||||||||
Condensed consolidating statements of comprehensive income | Comprehensive income attributable to QVC, Inc. shareholder | $ | 545 | 356 | 63 | (419 | ) | 545 | ||||||||||||||||
Three months ended June 30, 2014 | ||||||||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | Consolidating statements of cash flows | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net income | $ | 140 | 94 | 43 | (137 | ) | 140 | Year ended December 31, 2013 | ||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
Foreign currency translation adjustments | 2 | — | 2 | (2 | ) | 2 | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Total comprehensive income | 142 | 94 | 45 | (139 | ) | 142 | Operating activities: | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (10 | ) | — | (10 | ) | 10 | (10 | ) | Net cash provided by operating activities | $ | 379 | 389 | 205 | — | 973 | |||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 132 | 94 | 35 | (129 | ) | 132 | Investing activities: | ||||||||||||||||
Capital expenditures, net | (106 | ) | (8 | ) | (97 | ) | — | (211 | ) | |||||||||||||||
Condensed consolidating statements of comprehensive income - Adjusted | ||||||||||||||||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (56 | ) | (2 | ) | — | (58 | ) | ||||||||||||||||
Three months ended June 30, 2013 | Decrease (increase) in restricted cash | 2 | — | (1 | ) | — | 1 | |||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Changes in other noncurrent assets | (1 | ) | — | (1 | ) | — | (2 | ) | ||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net income | $ | 139 | 67 | 25 | (92 | ) | 139 | Intercompany investing activities | 368 | 277 | — | (645 | ) | — | ||||||||||
Foreign currency translation adjustments | (16 | ) | — | (16 | ) | 16 | (16 | ) | Net cash provided by (used in) investing activities | 263 | 213 | (101 | ) | (645 | ) | (270 | ) | |||||||
Total comprehensive income | 123 | 67 | 9 | (76 | ) | 123 | Financing activities: | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (7 | ) | — | (7 | ) | 7 | (7 | ) | Principal payments of debt and capital lease obligations | (2,375 | ) | — | (12 | ) | — | (2,387 | ) | |||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 116 | 67 | 2 | (69 | ) | 116 | Principal borrowings of debt from senior secured credit facility | 1,674 | — | — | — | 1,674 | |||||||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | |||||||||||||||||||
Condensed consolidating statements of comprehensive income | ||||||||||||||||||||||||
Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | |||||||||||||||||
Six months ended June 30, 2014 | Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | ||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Other financing activities | 12 | — | — | — | 12 | |||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net income | $ | 262 | 105 | 8 | (113 | ) | 262 | Dividends paid to Liberty | (1,005 | ) | — | — | — | (1,005 | ) | |||||||||
Foreign currency translation adjustments | 18 | — | 18 | (18 | ) | 18 | Dividends paid to noncontrolling interest | — | — | (45 | ) | — | (45 | ) | ||||||||||
Total comprehensive income | 280 | 105 | 26 | (131 | ) | 280 | Net short-term intercompany debt borrowings (repayments) | 190 | (63 | ) | (127 | ) | — | — | ||||||||||
Comprehensive income attributable to noncontrolling interest | (22 | ) | — | (22 | ) | 22 | (22 | ) | Intercompany financing activities | (123 | ) | (571 | ) | 49 | 645 | — | ||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 258 | 105 | 4 | (109 | ) | 258 | Net cash used in financing activities | (639 | ) | (634 | ) | (135 | ) | 645 | (763 | ) | |||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (23 | ) | — | (23 | ) | |||||||||||||||||
Condensed consolidating statements of comprehensive income - Adjusted | ||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 3 | (32 | ) | (54 | ) | — | (83 | ) | ||||||||||||||||
Six months ended June 30, 2013 | Cash and cash equivalents, beginning of period | 75 | 165 | 300 | — | 540 | ||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Cash and cash equivalents, end of period | $ | 78 | 133 | 246 | — | 457 | ||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Net income | $ | 245 | 146 | 53 | (199 | ) | 245 | Consolidating statements of cash flows - Adjusted | ||||||||||||||||
Foreign currency translation adjustments | (107 | ) | — | (107 | ) | 107 | (107 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||
Total comprehensive income (loss) | 138 | 146 | (54 | ) | (92 | ) | 138 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (6 | ) | — | (6 | ) | 6 | (6 | ) | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||
Operating activities: | ||||||||||||||||||||||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 132 | 146 | (60 | ) | (86 | ) | 132 | ||||||||||||||||
Net cash provided by operating activities | $ | 462 | 412 | 332 | — | 1,206 | ||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Condensed consolidating statements of cash flows | ||||||||||||||||||||||||
Capital expenditures, net | (76 | ) | (5 | ) | (165 | ) | — | (246 | ) | |||||||||||||||
Six months ended June 30, 2014 | Expenditures for cable and satellite television distribution rights, net | — | (1 | ) | (1 | ) | — | (2 | ) | |||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Cash paid for joint ventures and acquisitions of businesses, net of cash received | — | — | (95 | ) | — | (95 | ) | |||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Operating activities: | Decrease in restricted cash | 2 | — | — | — | 2 | ||||||||||||||||||
Net cash provided by operating activities | $ | 217 | 172 | 160 | — | 549 | Changes in other noncurrent assets | (3 | ) | — | — | — | (3 | ) | ||||||||||
Investing activities: | Intercompany investing activities | 443 | 265 | — | (708 | ) | — | |||||||||||||||||
Capital expenditures, net | (74 | ) | (1 | ) | 38 | (20 | ) | (57 | ) | Net cash provided by (used in) investing activities | 366 | 259 | (261 | ) | (708 | ) | (344 | ) | ||||||
Expenditures for cable and satellite television distribution rights, net | — | (8 | ) | — | — | (8 | ) | Financing activities: | ||||||||||||||||
Intercompany investing activities | 114 | 27 | — | (141 | ) | — | Principal payments of debt and capital lease obligations | (1,237 | ) | — | (9 | ) | — | (1,246 | ) | |||||||||
Net cash provided by (used in) investing activities | 40 | 18 | 38 | (161 | ) | (65 | ) | Principal borrowings of debt from senior secured credit facility | 1,717 | — | — | — | 1,717 | |||||||||||
Financing activities: | Proceeds from issuance of senior secured notes | 500 | — | — | — | 500 | ||||||||||||||||||
Principal payments of debt and capital lease obligations | (1,414 | ) | — | (5 | ) | — | (1,419 | ) | Payment of debt origination fees | (7 | ) | — | — | — | (7 | ) | ||||||||
Principal borrowings of debt from senior secured credit facility | 554 | — | — | — | 554 | Other financing activities | 20 | — | — | — | 20 | |||||||||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | — | — | — | 999 | Dividends paid to Liberty | (1,817 | ) | — | — | — | (1,817 | ) | |||||||||||
Payment of debt origination fees | (12 | ) | — | — | — | (12 | ) | Dividend paid to noncontrolling interest | — | — | (29 | ) | — | (29 | ) | |||||||||
Other financing activities | (4 | ) | — | — | — | (4 | ) | Net short-term intercompany debt borrowings (repayments) | 214 | (59 | ) | (155 | ) | — | — | |||||||||
Dividends paid to Liberty | (480 | ) | — | — | — | (480 | ) | Intercompany financing activities | (146 | ) | (670 | ) | 108 | 708 | — | |||||||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | Net cash used in financing activities | (756 | ) | (729 | ) | (85 | ) | 708 | (862 | ) | |||||||
Net short-term intercompany debt borrowings (repayments) | 65 | 65 | (130 | ) | — | — | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (20 | ) | — | (20 | ) | ||||||||||
Intercompany financing activities | (25 | ) | (226 | ) | 90 | 161 | — | Net increase (decrease) in cash and cash equivalents | 72 | (58 | ) | (34 | ) | — | (20 | ) | ||||||||
Net cash used in financing activities | (317 | ) | (161 | ) | (70 | ) | 161 | (387 | ) | Cash and cash equivalents, beginning of period | 3 | 223 | 334 | — | 560 | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (6 | ) | — | (6 | ) | Cash and cash equivalents, end of period | $ | 75 | 165 | 300 | — | 540 | ||||||||||
Net (decrease) increase in cash and cash equivalents | (60 | ) | 29 | 122 | — | 91 | Consolidating statements of cash flows - Adjusted | |||||||||||||||||
Cash and cash equivalents, beginning of period | 78 | 133 | 246 | — | 457 | |||||||||||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 18 | 162 | 368 | — | 548 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||
Condensed consolidating statements of cash flows - Adjusted | Operating activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 225 | 380 | 213 | — | 818 | ||||||||||||||||||
Six months ended June 30, 2013 | ||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | Investing activities: | ||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | Capital expenditures, net | (83 | ) | (8 | ) | (168 | ) | — | (259 | ) | |||||||||||
Operating activities: | ||||||||||||||||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (2 | ) | — | — | (2 | ) | |||||||||||||||||
Net cash provided by operating activities | $ | 275 | 115 | 52 | — | 442 | ||||||||||||||||||
Decrease in restricted cash | 1 | — | — | — | 1 | |||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Changes in other noncurrent assets and liabilities | 5 | — | (1 | ) | — | 4 | ||||||||||||||||||
Capital expenditures, net | (33 | ) | — | (42 | ) | — | (75 | ) | ||||||||||||||||
Intercompany investing activities | 348 | 190 | — | (538 | ) | — | ||||||||||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (25 | ) | (1 | ) | — | (26 | ) | ||||||||||||||||
Net cash provided by (used in) investing activities | 271 | 180 | (169 | ) | (538 | ) | (256 | ) | ||||||||||||||||
Changes in other noncurrent assets | 4 | — | (3 | ) | — | 1 | ||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Intercompany investing activities | 258 | 149 | — | (407 | ) | — | ||||||||||||||||||
Principal payments of debt and capital lease obligations | (825 | ) | — | (12 | ) | — | (837 | ) | ||||||||||||||||
Net cash provided by (used in) investing activities | 229 | 124 | (46 | ) | (407 | ) | (100 | ) | ||||||||||||||||
Principal borrowings of debt from senior secured credit facility | 465 | — | — | — | 465 | |||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Dividends paid to Liberty | (205 | ) | — | — | — | (205 | ) | |||||||||||||||||
Principal payments of debt and capital lease obligations | (1,690 | ) | — | (5 | ) | — | (1,695 | ) | ||||||||||||||||
Dividends paid to noncontrolling interest | — | — | (50 | ) | — | (50 | ) | |||||||||||||||||
Principal borrowings of debt from senior secured credit facility | 1,053 | — | — | — | 1,053 | |||||||||||||||||||
Net short-term intercompany debt borrowings (repayments) | 104 | 2 | (106 | ) | — | — | ||||||||||||||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | |||||||||||||||||||
Intercompany financing activities | (76 | ) | (499 | ) | 37 | 538 | — | |||||||||||||||||
Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | |||||||||||||||||
Net cash used in financing activities | (537 | ) | (497 | ) | (131 | ) | 538 | (627 | ) | |||||||||||||||
Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | |||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 4 | — | 4 | |||||||||||||||||||
Other financing activities | 7 | — | — | — | 7 | |||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (41 | ) | 63 | (83 | ) | — | (61 | ) | ||||||||||||||||
Dividends paid to Liberty | (765 | ) | — | — | — | (765 | ) | |||||||||||||||||
Cash and cash equivalents, beginning of period | 44 | 160 | 417 | — | 621 | |||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 3 | 223 | 334 | — | 560 | ||||||||||||||||||
Net short-term intercompany debt (repayments) borrowings | (21 | ) | 86 | (65 | ) | — | — | |||||||||||||||||
Intercompany financing activities | (143 | ) | (326 | ) | 62 | 407 | — | |||||||||||||||||
Net cash used in financing activities | (571 | ) | (240 | ) | (33 | ) | 407 | (437 | ) | |||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (29 | ) | — | (29 | ) | |||||||||||||||||
Net decrease in cash and cash equivalents | (67 | ) | (1 | ) | (56 | ) | — | (124 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | 75 | 165 | 300 | — | 540 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 8 | 164 | 244 | — | 416 | ||||||||||||||||||
Basis_of_Presentation_Policies1
Basis of Presentation (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Basis of Presentation [Abstract] | ' | ' |
Consolidation policy | ' | ' |
The condensed consolidated financial statements include the accounts of the Company and its majority‑owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. | The consolidated financial statements include the accounts of the Company and its majority‑owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. | |
(q) Noncontrolling interest | ||
The Company reports the noncontrolling interest of QVC-Japan within equity in the consolidated balance sheets and the amount of consolidated net income attributable to the noncontrolling interest is presented in the consolidated statements of operations. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | ' | |||||||||||||
Cash and cash equivalents policy | ' | ' | |||||||||||||
(a) Cash and cash equivalents | |||||||||||||||
All highly liquid investments purchased with an original maturity of three months or less are classified as cash equivalents. Cash equivalents were $342 million and $424 million at December 31, 2013 and 2012, respectively. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximates their fair values (Level 1). | |||||||||||||||
Restricted cash policy | ' | ' | |||||||||||||
(b) Restricted cash | |||||||||||||||
Restricted cash at December 31, 2013 and 2012 primarily includes a cash deposit with a third party trustee that provides financial assurance that the Company will fulfill its obligations in relation to claims under its workers' compensation policy. | |||||||||||||||
Receivables policy | ' | ' | |||||||||||||
(c) Accounts receivable | |||||||||||||||
A provision for customer bad debts is provided as a percentage of accounts receivable based on historical experience and is included within selling, general and administrative expense. A provision for noncustomer bad debt expense, related to amounts due from vendors for unsold and returned products, is provided based on an estimate of the probable expected losses and is included in cost of goods sold. | |||||||||||||||
Inventory policy | ' | ' | |||||||||||||
(d) Inventories | |||||||||||||||
Inventories, consisting primarily of products held for sale, are stated at the lower of cost or market. Cost is determined by the average cost method, which approximates the first-in, first-out method. Assessments about the realizability of inventory require the Company to make judgments based on currently available information about the likely method of disposition including sales to individual customers, returns to product vendors, liquidations and the estimated recoverable values of each disposition category. | |||||||||||||||
Property, plant and equipment policy | ' | ' | |||||||||||||
(e) Property, plant and equipment | |||||||||||||||
The costs of property, plant and equipment are capitalized and depreciated over their estimated useful lives using the straight-line method beginning in the month of acquisition or in-service date. Transponders under capital leases are stated at the present value of minimum lease payments. When assets are sold or retired, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in net income. The costs of maintenance and repairs are charged to expense as incurred. | |||||||||||||||
The Company is party to several transponder capacity arrangements as a lessee, which are accounted for as capital leases. | |||||||||||||||
Interest capitalization policy | ' | ' | |||||||||||||
(f) Capitalized interest | |||||||||||||||
The Company capitalizes interest cost incurred on debt during the construction of major projects exceeding one year. Capitalized interest was not material to the financial statements for any periods presented. | |||||||||||||||
Internal use software policy | ' | ' | |||||||||||||
(g) Internally developed software | |||||||||||||||
Internal software development costs are capitalized in accordance with guidance on accounting for the costs of computer software developed or obtained for internal use, and are classified within other intangible assets in the consolidated balance sheets. The Company amortizes computer software and internal software development costs over an estimated useful life of approximately three years using the straight-line method. | |||||||||||||||
Goodwill policy | ' | ' | |||||||||||||
(h) Goodwill | |||||||||||||||
Goodwill represents the excess of costs over the fair value of the net assets of businesses acquired. Goodwill is not amortized. Goodwill is tested annually for impairment, and more frequently if events and circumstances indicated that the asset might be impaired. An impairment loss would be recognized to the extent that the carrying amount exceeded the reporting unit's fair value. | |||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows: | |||||||||||||||
(in millions) | QVC-U.S. | QVC-Japan | QVC-Germany | QVC-U.K. | QVC-Italy | Total | |||||||||
Balance as of December 31, 2011 | $ | 4,169 | 393 | 328 | 203 | 146 | 5,239 | ||||||||
Acquisitions | 21 | — | — | — | — | 21 | |||||||||
Exchange rate fluctuations | — | (44 | ) | 6 | 9 | 3 | (26 | ) | |||||||
Balance as of December 31, 2012 | 4,190 | 349 | 334 | 212 | 149 | 5,234 | |||||||||
Exchange rate fluctuations | — | (61 | ) | 14 | 4 | 6 | (37 | ) | |||||||
Balance as of December 31, 2013 | $ | 4,190 | 288 | 348 | 216 | 155 | 5,197 | ||||||||
The Company utilized a qualitative assessment for determining whether step one of the goodwill impairment analysis was necessary, and concluded it was not. In evaluating goodwill on a qualitative basis, the Company reviewed the business performance of each reporting unit, evaluated other relevant factors and determined that it was not more likely than not that an impairment existed for any of the Company's reporting units. The Company considered whether there were any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges, the legal environments and how these factors might impact company specific performance in future periods. | |||||||||||||||
If a step one test would have been necessary based on the qualitative factors, the Company would have compared the estimated fair value of a reporting unit to its carrying value. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company's valuation analysis are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. For those reporting units whose carrying value exceeds the fair value, a second test is required to measure the impairment loss (the "Step 2 Test"). In the Step 2 Test, the fair value (Level 3) of the reporting unit is allocated to all of the assets and liabilities of the reporting unit with any residual value being allocated to goodwill. Any excess of the carrying value of the goodwill over this allocated amount is recorded as an impairment charge. | |||||||||||||||
Foreign currency transactions and translations policy | ' | ' | |||||||||||||
(i) Translation of foreign currencies | |||||||||||||||
Assets and liabilities of foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date, and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustments, net of applicable income taxes, are recorded as a component of accumulated other comprehensive income in equity. | |||||||||||||||
Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in the consolidated statements of operations as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions. | |||||||||||||||
Revenue recognition policy | ' | ' | |||||||||||||
(j) Revenue recognition | |||||||||||||||
The Company recognizes revenue at the time of delivery to customers. The revenue for shipments in-transit is recorded as deferred revenue. | |||||||||||||||
The Company's policy is to allow customers to return merchandise for up to thirty days after the date of shipment. An allowance for returned merchandise is provided at the time revenue is recorded as a percentage of sales based on historical experience. The total reduction in net revenue due to returns for the years ended years ended December 31, 2013, 2012 and 2011 aggregated to $2,036 million, $1,965 million and $1,900 million, respectively. | |||||||||||||||
The Company evaluates the criteria for reporting revenue gross as a principal versus net as an agent, in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, the Company is the primary obligor in the arrangement, has inventory risk, has latitude in establishing the selling price and selecting suppliers, and accordingly, records revenue gross. | |||||||||||||||
Sales and use taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from net revenue in the consolidated statements of operations. | |||||||||||||||
Cost of sales policy | ' | ' | |||||||||||||
(k) Cost of goods sold | |||||||||||||||
Cost of goods sold primarily includes actual product cost, provision for obsolete inventory, buying allowances received from suppliers, shipping and handling costs and warehouse costs. | |||||||||||||||
Advertising cost policy | ' | ' | |||||||||||||
(l) Advertising costs | |||||||||||||||
Advertising costs are expensed as incurred. Advertising costs amounted to $89 million, $91 million and $81 million for the years ended December 31, 2013, 2012 and 2011, respectively. These costs were included in selling, general and administrative expenses in the consolidated statements of operations. | |||||||||||||||
Stock-based compensation policy | ' | ' | |||||||||||||
(m) Stock-based compensation | |||||||||||||||
As more fully described in note 10, the Company and Liberty have granted certain stock‑based awards to employees of the Company. The Company measures the cost of employee services received in exchange for an award of equity instruments (such as stock options and restricted stock) based on the grant-date fair value of the award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the award). Stock‑based compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations. | |||||||||||||||
Impairment of long-lived assets policy | ' | ' | |||||||||||||
(n) Impairment of long-lived assets | |||||||||||||||
The Company reviews long-lived assets, such as property, plant and equipment, internally developed software and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Impairment charges are recognized as an acceleration of depreciation expense or amortization expense in the consolidated statement of operations. | |||||||||||||||
During the fourth quarter of 2011, the Company determined that certain capitalized customer relationship management ("CRM") software did not meet our service-level expectations and desired functionality. As a result, the Company recorded an impairment of certain CRM assets in the amount of $47 million included in depreciation and amortization in the statement of operations within the QVC-U.S. operating segment. | |||||||||||||||
Derivatives policy | ' | ' | |||||||||||||
(o) Derivatives | |||||||||||||||
The Company accounts for derivatives and hedging activities in accordance with standards issued by the Financial Accounting Standards Board ("FASB"), which requires that all derivative instruments be recorded on the balance sheet at their respective fair values. Fair value is based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. For derivatives designated as hedges, changes in the fair value are either offset against the changes in fair value of the designated hedged item through earnings or recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. | |||||||||||||||
The Company generally enters into derivative contracts that it intends to designate as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. The ineffective portion of the change in fair value of a derivative instrument that qualifies as a cash flow hedge is reported in earnings. | |||||||||||||||
In 2009 and 2011, QVC entered into several interest rate swap arrangements to mitigate the interest rate risk associated with interest payments related to its variable rate debt. QVC assessed the effectiveness of its interest rate swaps using the hypothetical derivative method. During 2013, 2012 and 2011, QVC's elected interest terms did not effectively match the terms of the swap arrangements. As a result, the swaps did not qualify as cash flow hedges. Changes in fair value of these interest rate swaps were included in gains on financial instruments in the consolidated statements of operations. In March 2013, QVC's notional interest rate swaps of $3.1 billion expired. | |||||||||||||||
Income tax policy | ' | ' | |||||||||||||
(p) Income taxes | |||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred income 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 income tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||||
When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. | |||||||||||||||
Consolidation policy | ' | ' | |||||||||||||
The condensed consolidated financial statements include the accounts of the Company and its majority‑owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. | The consolidated financial statements include the accounts of the Company and its majority‑owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. | ||||||||||||||
(q) Noncontrolling interest | |||||||||||||||
The Company reports the noncontrolling interest of QVC-Japan within equity in the consolidated balance sheets and the amount of consolidated net income attributable to the noncontrolling interest is presented in the consolidated statements of operations. | |||||||||||||||
Business acquisition policy | ' | ' | |||||||||||||
(r) Business acquisitions | |||||||||||||||
Acquired businesses are accounted for using the acquisition method of accounting, which requires the Company to record assets acquired and liabilities assumed at their respective fair values with the excess of the purchase price over estimated fair values recorded as goodwill. The assumptions made in determining the fair value of acquired assets and assumed liabilities as well as asset lives can materially impact the results of operations. The Company obtains information during due diligence and through other sources to establish respective fair values. Examples of factors and information that the Company uses to determine the fair values include tangible and intangible asset evaluations and appraisals and evaluations of existing contingencies and liabilities. If the initial valuation for an acquisition is incomplete by the end of the quarter in which the acquisition occurred, the Company will record a provisional estimate in the financial statements. The provisional estimate will be finalized as soon as information becomes available, but not later than one year from the acquisition date. | |||||||||||||||
Equity method investments policy | ' | ' | |||||||||||||
(s) Investment in affiliate | |||||||||||||||
The Company holds an investment in China that is accounted for using the equity method. The equity method of accounting is used when we exercise significant influence, but do not have operating control, generally assumed to be 20%-50% ownership. Under the equity method, original investments are recorded at cost and adjusted by our share of undistributed earnings or losses of these companies. The excess of the Company's cost on its underlying interest in the net assets of the affiliate is allocated to identifiable intangible assets and goodwill. Equity investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. | |||||||||||||||
Use of estimates policy | ' | ' | |||||||||||||
(t) Use of estimates in the preparation of consolidated financial statements | |||||||||||||||
The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, medical and other benefit related costs, depreciable lives of fixed assets, internally developed software, valuation of acquired intangible assets and goodwill, income taxes and stock‑based compensation. | |||||||||||||||
New accounting pronouncements policy | ' | ' | |||||||||||||
On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | (u) Recent accounting pronouncements | ||||||||||||||
In February 2013, the FASB issued Accounting Standards Update ("ASU") No. 2013-02, which amends Accounting Standards Codification ("ASC") Topic 220, Comprehensive Income and requires that companies present information about reclassification adjustments from accumulated other comprehensive income in their interim and annual financial statements. The standard requires that companies present either in a single note, or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies will instead cross reference to the related footnote for additional information. QVC adopted this guidance as of January 1, 2013, and adoption did not have an impact on QVC's consolidated financial position, results of operations or cash flows. | |||||||||||||||
Reclassification policy | ' | ' | |||||||||||||
Certain prior period amounts have been reclassified to conform with current period presentation. | (v) Reclassifications | ||||||||||||||
Certain prior period amounts have been reclassified to conform with current period presentation. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ' | ||||||||||||||||||||||||||
Schedule of goodwill | ' | ' | ||||||||||||||||||||||||||
The changes in the carrying amount of goodwill were as follows: | The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||
(in millions) | QVC-U.S. | QVC-Japan | QVC-Germany | QVC-U.K. | QVC-Italy | Total | (in millions) | QVC-U.S. | QVC-Japan | QVC-Germany | QVC-U.K. | QVC-Italy | Total | |||||||||||||||
Balance as of December 31, 2013 | $ | 4,190 | 288 | 348 | 216 | 155 | 5,197 | Balance as of December 31, 2011 | $ | 4,169 | 393 | 328 | 203 | 146 | 5,239 | |||||||||||||
Exchange rate fluctuations | — | 11 | (3 | ) | 6 | (1 | ) | 13 | Acquisitions | 21 | — | — | — | — | 21 | |||||||||||||
Balance as of June 30, 2014 | $ | 4,190 | 299 | 345 | 222 | 154 | 5,210 | Exchange rate fluctuations | — | (44 | ) | 6 | 9 | 3 | (26 | ) | ||||||||||||
Balance as of December 31, 2012 | 4,190 | 349 | 334 | 212 | 149 | 5,234 | ||||||||||||||||||||||
Exchange rate fluctuations | — | (61 | ) | 14 | 4 | 6 | (37 | ) | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 4,190 | 288 | 348 | 216 | 155 | 5,197 | |||||||||||||||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Receivables [Abstract] | ' | |||||||||
Schedule of accounts receivable | ' | |||||||||
Accounts receivable consisted of the following: | ||||||||||
December 31, | ||||||||||
(in millions) | 2013 | 2012 | ||||||||
QVC Easy-Pay plan | $ | 915 | 816 | |||||||
Major credit card and other receivables | 279 | 313 | ||||||||
1,194 | 1,129 | |||||||||
Less allowance for doubtful accounts | (83 | ) | (74 | ) | ||||||
Accounts receivable, net | $ | 1,111 | 1,055 | |||||||
Summary of activity in the allowance for doubtful accounts | ' | |||||||||
A summary of activity in the allowance for doubtful accounts was as follows (in millions): | ||||||||||
(in millions) | Balance | Additions‑ | Deductions‑ | Balance | ||||||
beginning | charged | write-offs | end of | |||||||
of year | to expense | year | ||||||||
2013 | $ | 74 | 81 | (72 | ) | 83 | ||||
2012 | 79 | 75 | (80 | ) | 74 | |||||
2011 | 66 | 68 | (55 | ) | 79 | |||||
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Schedule of property, plant and equipment, net | ' | ||||||
Property, plant and equipment consisted of the following: | |||||||
December 31, | Estimated | ||||||
useful | |||||||
(in millions) | 2013 | 2012 | life | ||||
Land | $ | 87 | 97 | N/A | |||
Buildings and improvements | 954 | 877 | 8 - 20 years | ||||
Furniture and other equipment | 429 | 412 | 2 - 8 years | ||||
Broadcast equipment | 107 | 91 | 3 - 5 years | ||||
Computer equipment | 204 | 185 | 2 - 4 years | ||||
Transponders (note 9) | 170 | 137 | 8 - 15 years | ||||
Projects in progress | 74 | 199 | N/A | ||||
2,025 | 1,998 | ||||||
Less accumulated depreciation | (919 | ) | (867 | ) | |||
Property, plant and equipment, net | $ | 1,106 | 1,131 | ||||
Cable_and_Satellite_Television5
Cable and Satellite Television Distribution Rights, Net (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Cable and Satellite Television Distribution Rights [Abstract] | ' | ' | ||||||||||
Schedule of Cable and Satellite Television Distribution Rights | ' | ' | ||||||||||
Cable and satellite television distribution rights consisted of the following: | Cable and satellite television distribution rights consisted of the following: | |||||||||||
June 30, | December 31, | December 31, | ||||||||||
(in millions) | 2013 | 2012 | ||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Cable and satellite television distribution rights | $ | 2,324 | 2,304 | |||||||||
Cable and satellite television distribution rights | $ | 2,334 | 2,324 | |||||||||
Less accumulated amortization | (1,700 | ) | (1,540 | ) | ||||||||
Less accumulated amortization | (1,794 | ) | (1,700 | ) | Cable and satellite television distribution rights, net | $ | 624 | 764 | ||||
Cable and satellite television distribution rights, net | $ | 540 | 624 | |||||||||
Schedule of Expected Amortization Expense | ' | ' | ||||||||||
As of June 30, 2014, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | As of December 31, 2013, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | |||||||||||
Remainder of 2014 | $ | 87 | 2014 | $ | 176 | |||||||
2015 | 168 | 2015 | 167 | |||||||||
2016 | 162 | 2016 | 161 | |||||||||
2017 | 111 | 2017 | 110 | |||||||||
2018 | 6 | 2018 | 5 | |||||||||
Other_Intangible_Assets_Net_Ta1
Other Intangible Assets, Net (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Other Intangible Assets [Abstract] | ' | ' | ||||||||||||||||||||||||
Schedule of Acquired Intangible Assets by Class | ' | ' | ||||||||||||||||||||||||
Other intangible assets consisted of the following: | Other intangible assets consisted of the following: | |||||||||||||||||||||||||
June 30, | December 31, | December 31, | Weighted average remaining life (years) | |||||||||||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | Gross | Accumulated | Other intangible assets, net | Gross | Accumulated | Other intangible assets, net | (in millions) | Gross | Accumulated | Gross | Accumulated | |||||||||||||||
cost | amortization | cost | amortization | cost | amortization | cost | amortization | |||||||||||||||||||
Purchased and internally developed software | $ | 630 | (423 | ) | 207 | 615 | (393 | ) | 222 | Purchased and internally developed software | $ | 615 | (393 | ) | 575 | (352 | ) | 1.7 | ||||||||
Affiliate and customer relationships | 2,451 | (1,890 | ) | 561 | 2,450 | (1,802 | ) | 648 | Affiliate and customer relationships | 2,450 | (1,802 | ) | 2,445 | (1,624 | ) | 3.8 | ||||||||||
Debt origination fees | 64 | (17 | ) | 47 | 51 | (13 | ) | 38 | Debt origination fees | 51 | (13 | ) | 54 | (18 | ) | 8.8 | ||||||||||
Trademarks (indefinite life) | 2,428 | — | 2,428 | 2,428 | — | 2,428 | Trademarks (indefinite life) | 2,428 | — | 2,429 | — | — | ||||||||||||||
$ | 5,573 | (2,330 | ) | 3,243 | 5,544 | (2,208 | ) | 3,336 | $ | 5,544 | (2,208 | ) | 5,503 | (1,994 | ) | 3.5 | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ' | ||||||||||||||||||||||||
As of June 30, 2014, the related amortization expense and interest expense for each of the next five years ended December 31 was as follows (in millions): | As of December 31, 2013, the related amortization expense and interest expense for each of the next five years ended December 31 was as follows (in millions): | |||||||||||||||||||||||||
Remainder of 2014 | $ | 146 | 2014 | $ | 280 | |||||||||||||||||||||
2015 | 270 | 2015 | 259 | |||||||||||||||||||||||
2016 | 235 | 2016 | 223 | |||||||||||||||||||||||
2017 | 135 | 2017 | 122 | |||||||||||||||||||||||
2018 | 9 | 2018 | 9 | |||||||||||||||||||||||
The decrease in future amortization expense in 2018 is primarily due to the end of the useful lives of the affiliate and customer relationships in place at the time of the Liberty acquisition of QVC in 2003. |
Accrued_Liabilities_Tables1
Accrued Liabilities (Tables) | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||
Accrued Liabilities [Abstract] | ' | ' | |||||||||
Schedule of Accrued Liabilities | ' | ' | |||||||||
Accrued liabilities consisted of the following: | Accrued liabilities consisted of the following: | ||||||||||
June 30, | December 31, | December 31, | |||||||||
(in millions) | 2013 | 2012 | |||||||||
(in millions) | 2014 | 2013 | |||||||||
Accounts payable non-trade | 323 | 264 | |||||||||
Accounts payable non-trade | 188 | 323 | |||||||||
Income taxes | 126 | 154 | |||||||||
Income taxes | 98 | 126 | |||||||||
Allowance for sales returns | 108 | 92 | |||||||||
Accrued compensation and benefits | 96 | 98 | |||||||||
Accrued compensation and benefits | 98 | 100 | |||||||||
Allowance for sales returns | 80 | 108 | |||||||||
Sales and other taxes | 79 | 62 | |||||||||
Accrued interest | 78 | 58 | |||||||||
Deferred revenue | 73 | 85 | |||||||||
Deferred revenue | 73 | 73 | |||||||||
Liability for consigned goods sold | 69 | 56 | |||||||||
Sales and other taxes | 53 | 79 | |||||||||
Accrued interest | 58 | 50 | |||||||||
Other | 77 | 95 | |||||||||
Other | 95 | 92 | |||||||||
$ | 743 | 960 | |||||||||
1,029 | 955 | ||||||||||
LongTerm_Debt_and_Interest_Rat1
Long-Term Debt and Interest Rate Swap Arrangements (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ' | ||||||||||
Schedule of Debt | ' | ' | ||||||||||
Long-term debt consisted of the following: | Long-term debt consisted of the following: | |||||||||||
June 30, | December 31, | December 31, | ||||||||||
(in millions) | 2013 | 2012 | ||||||||||
(in millions) | 2014 | 2013 | ||||||||||
7.125% Senior Secured Notes due 2017 | $ | — | 500 | |||||||||
3.125% Senior Secured Notes due 2019, net of original issue discount | $ | 399 | — | |||||||||
7.5% Senior Secured Notes due 2019, net of original issue discount | 761 | 988 | ||||||||||
7.5% Senior Secured Notes due 2019, net of original issue discount | 761 | 761 | ||||||||||
7.375% Senior Secured Notes due 2020 | 500 | 500 | ||||||||||
7.375% Senior Secured Notes due 2020 | 500 | 500 | ||||||||||
5.125% Senior Secured Notes due 2022 | 500 | 500 | ||||||||||
5.125% Senior Secured Notes due 2022 | 500 | 500 | ||||||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | 750 | — | ||||||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | 750 | 750 | ||||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | — | ||||||||||
4.85% Senior Secured Notes due 2024, net of original issue discount | 600 | — | ||||||||||
Senior secured credit facility | 922 | 903 | ||||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | 300 | ||||||||||
Capital lease obligations | 80 | 86 | ||||||||||
Senior secured credit facility | 65 | 922 | ||||||||||
Total debt | 3,813 | 3,477 | ||||||||||
Capital lease obligations | 73 | 80 | ||||||||||
Less current portion | (13 | ) | (12 | ) | ||||||||
Total debt | 3,948 | 3,813 | Long-term portion of debt and capital lease obligations | $ | 3,800 | 3,465 | ||||||
Less current portion | (11 | ) | (13 | ) | ||||||||
Long-term portion of debt and capital lease obligations | $ | 3,937 | 3,800 | |||||||||
Leases_and_Transponder_Service4
Leases and Transponder Service Agreements (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||
Leases and Transponder Service Agreements [Abstract] | ' | ' | ||||||||||
Future Minimum Lease Payments | ' | ' | ||||||||||
Future minimum payments under noncancelable operating leases and capital transponder leases with initial terms of one year or more at June 30, 2014 consisted of the following: | Future minimum payments under noncancelable operating leases and capital transponder leases with initial terms of one year or more at December 31, 2013 consisted of the following: | |||||||||||
(in millions) | Capital transponders | Operating leases | (in millions) | Capital transponders | Operating leases | |||||||
Remainder of 2014 | $ | 7 | 10 | 2014 | $ | 15 | 16 | |||||
2015 | 11 | 15 | 2015 | 11 | 14 | |||||||
2016 | 11 | 13 | 2016 | 11 | 12 | |||||||
2017 | 11 | 10 | 2017 | 11 | 10 | |||||||
2018 | 12 | 11 | 2018 | 12 | 10 | |||||||
Thereafter | 28 | 101 | Thereafter | 28 | 96 | |||||||
Total | $ | 80 | 160 | Total | $ | 88 | 158 | |||||
Stock_Options_and_Other_ShareB1
Stock Options and Other Share-Based Awards (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Schedule of stock options activity | ' | |||||||
A summary of the activity of the Liberty Incentive Plan with respect to the LINTA Options granted to QVC employees and officers as of and during the year ended December 31, 2013 is presented below: | ||||||||
Options | Weighted | Aggregate | Weighted average remaining | |||||
average | intrinsic | life | ||||||
exercise | value | (years) | ||||||
price | (000s) | |||||||
Outstanding at January 1, 2013 | 14,741,992 | 14.53 | 75,897 | 4.6 | ||||
Granted | 4,187,768 | 21.08 | ||||||
Exercised | (2,776,282 | ) | 10.19 | |||||
Forfeited | (515,339 | ) | 15.87 | |||||
Outstanding at December 31, 2013 | 15,638,139 | 17.01 | 192,975 | 4.4 | ||||
Exercisable at December 31, 2013 | 5,932,895 | 13.44 | 94,400 | 3.2 | ||||
A summary of the activity of the Liberty Incentive Plan with respect to the LVNTA Options granted to QVC employees and officers as of and during the year ended December 31, 2013 is presented below: | ||||||||
Options | Weighted average exercise | Aggregate intrinsic | Weighted average remaining | |||||
price | value (000s) | life (years) | ||||||
Outstanding at January 1, 2013 | 220,606 | 58.8 | 1,977 | 4.6 | ||||
Granted | — | — | ||||||
Exercised | — | — | ||||||
Forfeited | — | — | ||||||
Outstanding at December 31, 2013 | 220,606 | 58.8 | 14,072 | 3.6 | ||||
Exercisable at December 31, 2013 | 71,554 | 58.8 | 4,564 | 2.6 | ||||
Schedule of stock options valuation assumptions | ' | |||||||
During the years ended December 31, 2013, 2012 and 2011, the fair value of each LINTA Option was determined as of the date of grant using the Black‑Scholes option pricing model with the following assumptions: | ||||||||
2013 | 2012 | 2011 | ||||||
Weighted average expected volatility | 38.3 | % | 41.9 | % | 44.8 | % | ||
Expected term (years) | 6.2 | 5.2 | 5.9 | |||||
Risk free interest rate | 1.1 | % | 0.8 | % | 1.2%-2.5% | |||
Expected dividend yield | — | — | — | |||||
During the year ended December 31, 2012, the fair value of each LVNTA Option was determined as of the date of grant using the Black‑Scholes option pricing model with the following assumptions: | ||||||||
2012 | ||||||||
Weighted average expected volatility | 49.9 | % | ||||||
Expected term (years) | 4.9 | |||||||
Risk free interest rate | 0.6 | % | ||||||
Expected dividend yield | — | |||||||
Schedule of restricted stock activity | ' | |||||||
A summary of the activity of the Liberty Incentive Plan with respect to the LINTA restricted shares granted to QVC employees and officers as of and during the year ended December 31, 2013 is presented below: | ||||||||
Restricted Shares | Weighted average | |||||||
grant date fair value | ||||||||
Outstanding at January 1, 2013 | 1,454,148 | 12.75 | ||||||
Granted | 450,140 | 21.44 | ||||||
Lapsed | (608,490 | ) | 9.81 | |||||
Forfeited | (81,336 | ) | 16.25 | |||||
Outstanding at December 31, 2013 | 1,214,462 | 18.01 | ||||||
A summary of the activity of the Liberty Incentive Plan with respect to the LVNTA restricted shares granted to QVC employees and officers as of and during the year ended December 31, 2013 is presented below: | ||||||||
Restricted Shares | Weighted | |||||||
Average | ||||||||
Grant Date Fair Value | ||||||||
Outstanding at January 1, 2013 | 65,542 | 31.75 | ||||||
Granted | — | — | ||||||
Lapsed | (30,007 | ) | 23.64 | |||||
Forfeited | (3,456 | ) | 37.84 | |||||
Outstanding at December 31, 2013 | 32,079 | 38.68 | ||||||
Income_Taxes_Income_Tax_Tables
Income Taxes Income Tax (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of components of income tax expense (benefit) | ' | |||||||
Income tax expense (benefit) consisted of the following: | ||||||||
Years ended December 31, | ||||||||
(in millions) | 2013 | 2012 | 2011 | |||||
Current: | ||||||||
U.S. federal | $ | 361 | 369 | 313 | ||||
State and local | 22 | 23 | 28 | |||||
Foreign jurisdiction | 78 | 136 | 117 | |||||
Total | 461 | 528 | 458 | |||||
Deferred: | ||||||||
U.S. federal | (107 | ) | (121 | ) | (97 | ) | ||
State and local | (7 | ) | (7 | ) | (15 | ) | ||
Foreign jurisdiction | 6 | (6 | ) | (4 | ) | |||
Total | (108 | ) | (134 | ) | (116 | ) | ||
Total income tax expense | $ | 353 | 394 | 342 | ||||
Schedule of pre-tax income, domestic and foreign | ' | |||||||
Pre-tax income was as follows: | ||||||||
Years ended December 31, | ||||||||
(in millions) | 2013 | 2012 | 2011 | |||||
QVC-U.S. | $ | 824 | 865 | 785 | ||||
QVC-Japan | 181 | 253 | 199 | |||||
QVC-Germany | 18 | 29 | 32 | |||||
QVC-U.K. | 1 | (17 | ) | (2 | ) | |||
QVC-Italy | (38 | ) | (49 | ) | (60 | ) | ||
Consolidated QVC | $ | 986 | 1,081 | 954 | ||||
Schedule of effective income tax rate reconciliation | ' | |||||||
Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following: | ||||||||
Years ended December 31, | ||||||||
2013 | 2012 | 2011 | ||||||
Provision at statutory rate | 35 | % | 35 | % | 35 | % | ||
State income taxes, net of federal benefit | 0.7 | % | 1 | % | 0.9 | % | ||
Foreign taxes | 0.6 | % | 1.3 | % | 1.3 | % | ||
Foreign earnings repatriation | (0.4 | )% | (1.1 | )% | (1.1 | )% | ||
Permanent differences | — | % | 0.1 | % | — | % | ||
Other, net | (0.1 | )% | 0.1 | % | (0.3 | )% | ||
Total income tax expense | 35.8 | % | 36.4 | % | 35.8 | % | ||
Schedule of deferred tax assets and liabilities | ' | |||||||
The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: | ||||||||
December 31, | ||||||||
(in millions) | 2013 | 2012 | ||||||
Deferred tax assets: | ||||||||
Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts | $ | 32 | 29 | |||||
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 | 36 | 39 | ||||||
Allowance for sales returns | 39 | 33 | ||||||
Deferred compensation | 36 | 27 | ||||||
Unrecognized federal and state tax benefits | 29 | 31 | ||||||
Accrued liabilities | 25 | 29 | ||||||
Other | 36 | 42 | ||||||
Subtotal | 233 | 230 | ||||||
Valuation allowance | (1 | ) | (1 | ) | ||||
Total deferred tax assets | 232 | 229 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | (1,349 | ) | (1,455 | ) | ||||
Cumulative translation of foreign currencies | (47 | ) | (33 | ) | ||||
Total deferred tax liabilities | (1,396 | ) | (1,488 | ) | ||||
Net deferred tax liability | $ | (1,164 | ) | (1,259 | ) | |||
Schedule of unrecognized tax benefits roll forward | ' | |||||||
A reconciliation of the 2013 beginning and ending amount of the liability for unrecognized tax benefits is as follows: | ||||||||
(in millions) | ||||||||
Balance at January 1, 2013 | 95 | |||||||
Decreases related to prior year tax positions | (11 | ) | ||||||
Increases related to current year tax positions | 12 | |||||||
Settlements | (7 | ) | ||||||
Balance at December 31, 2013 | 89 | |||||||
Assets_and_Liabilities_Measure4
Assets and Liabilities Measured at Fair Value (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | ||||||||||||||||||
Schedule of fair value, assets and liabilities measured on recurring basis | ' | ' | ||||||||||||||||||
The Company's assets and liabilities measured or disclosed at fair value were as follows: | The Company's assets and liabilities measured or disclosed at fair value were as follows: | |||||||||||||||||||
Fair value measurements | Fair value measurements | |||||||||||||||||||
at June 30, 2014 using | at December 31, 2013 using | |||||||||||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | (in millions) | Total | Quoted prices | Significant | Significant | |||||||||||
in active | other | unobservable | in active | other | unobservable | |||||||||||||||
markets for | observable | inputs | markets for | observable | inputs | |||||||||||||||
identical | inputs | (Level 3) | identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | assets | (Level 2) | |||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||||
Cash equivalents | $ | 463 | 463 | — | — | Cash equivalents | $ | 342 | 342 | — | — | |||||||||
Long-term liabilities: | Long-term liabilities: | |||||||||||||||||||
Debt (note 6) | 4,071 | — | 4,071 | — | Debt (note 8) | 3,783 | — | 3,783 | — | |||||||||||
Fair value measurements | Fair value measurements | |||||||||||||||||||
at December 31, 2013 using | at December 31, 2012 using | |||||||||||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | (in millions) | Total | Quoted prices | Significant | Significant | |||||||||||
in active | other | unobservable | in active | other | unobservable | |||||||||||||||
markets for | observable | inputs | markets for | observable | inputs | |||||||||||||||
identical | inputs | (Level 3) | identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | assets | (Level 2) | |||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||||
Cash equivalents | $ | 342 | 342 | — | — | Cash equivalents | $ | 424 | 424 | — | — | |||||||||
Long-term liabilities: | Interest rate swap arrangements (note 8) | 1 | — | 1 | — | |||||||||||||||
Debt (note 6) | 3,783 | — | 3,783 | — | Current liabilities: | |||||||||||||||
Interest rate swap arrangements (note 8) | 13 | — | 13 | — | ||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||
Debt (note 8) | 3,626 | — | 3,626 | — | ||||||||||||||||
Information_about_QVCs_Operati8
Information about QVC's Operating Segments (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ' | |||||||||||||||||||||||||||||||
Schedule of Revenue and Adjusted OIBDA by Segment | ' | ' | |||||||||||||||||||||||||||||||
Performance measures | Performance measures | ||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | Net | Adjusted | (in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | ||||||||||||||||||
revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | ||||||||||||||||||||
QVC-U.S. | $ | 1,352 | 325 | 1,312 | 320 | 2,657 | 626 | 2,609 | 611 | QVC-U.S. | $ | 5,844 | 1,352 | 5,585 | 1,292 | 5,412 | 1,225 | ||||||||||||||||
QVC-Japan | 223 | 43 | 260 | 57 | 457 | 90 | 516 | 111 | QVC-Japan | 1,024 | 212 | 1,247 | 279 | 1,127 | 241 | ||||||||||||||||||
QVC-Germany | 227 | 40 | 207 | 35 | 477 | 79 | 457 | 78 | QVC-Germany | 971 | 173 | 956 | 179 | 1,068 | 199 | ||||||||||||||||||
QVC-U.K. | 178 | 33 | 153 | 26 | 343 | 60 | 293 | 45 | QVC-U.K. | 657 | 118 | 641 | 104 | 626 | 111 | ||||||||||||||||||
QVC-Italy | 34 | (2 | ) | 29 | (4 | ) | 66 | (4 | ) | 60 | (7 | ) | QVC-Italy | 127 | (14 | ) | 87 | (26 | ) | 35 | (43 | ) | |||||||||||
Consolidated QVC | $ | 2,014 | 439 | 1,961 | 434 | 4,000 | 851 | 3,935 | 838 | Consolidated QVC | $ | 8,623 | 1,841 | 8,516 | 1,828 | 8,268 | 1,733 | ||||||||||||||||
Schedule of Depreciation and Amortization by Segment | ' | ' | |||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | (in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | ||||||||||||||||||
QVC-U.S. | $ | 14 | 99 | 14 | 91 | 27 | 192 | 27 | 179 | QVC-U.S. | $ | 55 | 362 | 51 | 338 | 52 | 376 | ||||||||||||||||
QVC-Japan | 4 | 2 | 5 | 2 | 9 | 4 | 8 | 4 | QVC-Japan | 23 | 9 | 16 | 10 | 29 | 12 | ||||||||||||||||||
QVC-Germany | 8 | 8 | 8 | 9 | 16 | 19 | 16 | 18 | QVC-Germany | 30 | 38 | 31 | 33 | 33 | 36 | ||||||||||||||||||
QVC-U.K. | 4 | 3 | 5 | 3 | 8 | 7 | 9 | 6 | QVC-U.K. | 12 | 14 | 21 | 12 | 13 | 11 | ||||||||||||||||||
QVC-Italy | 3 | — | 1 | 2 | 6 | 1 | 3 | 4 | QVC-Italy | 7 | 8 | 7 | 7 | 8 | 4 | ||||||||||||||||||
Consolidated QVC | $ | 33 | 112 | 33 | 107 | 66 | 223 | 63 | 211 | Consolidated QVC | $ | 127 | 431 | 126 | 400 | 135 | 439 | ||||||||||||||||
Schedule of Capital Expenditures and Total Assets by Segment | ' | ' | |||||||||||||||||||||||||||||||
Six months ended June 30, | Year ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(in millions) | Total | Capital | Total | Capital | (in millions) | Total | Capital | Total | Capital | ||||||||||||||||||||||||
assets | expenditures, net | assets | expenditures, net | assets | expenditures | assets | expenditures | ||||||||||||||||||||||||||
QVC-U.S. | $ | 9,933 | 38 | 10,322 | 123 | QVC-U.S. | $ | 10,322 | 123 | 10,541 | 88 | ||||||||||||||||||||||
QVC-Japan | 732 | (1 | ) | 732 | 16 | QVC-Japan | 732 | 16 | 969 | 105 | |||||||||||||||||||||||
QVC-Germany | 1,103 | 4 | 1,109 | 28 | QVC-Germany | 1,109 | 28 | 1,064 | 25 | ||||||||||||||||||||||||
QVC-U.K. | 628 | 6 | 613 | 16 | QVC-U.K. | 613 | 16 | 619 | 22 | ||||||||||||||||||||||||
QVC-Italy | 271 | 10 | 280 | 28 | QVC-Italy | 280 | 28 | 245 | 6 | ||||||||||||||||||||||||
Consolidated QVC | $ | 12,667 | 57 | 13,056 | 211 | Consolidated QVC | $ | 13,056 | 211 | 13,438 | 246 | ||||||||||||||||||||||
Long-Lived Assets by Segment | ' | ' | |||||||||||||||||||||||||||||||
Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | ||||||||||||||||||||||||||||||||
June 30, | December 31, | December 31, | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
QVC-U.S. | $ | 448 | 429 | ||||||||||||||||||||||||||||||
QVC-U.S. | $ | 436 | 448 | ||||||||||||||||||||||||||||||
QVC-Japan | 220 | 280 | |||||||||||||||||||||||||||||||
QVC-Japan | 218 | 220 | |||||||||||||||||||||||||||||||
QVC-Germany | 244 | 247 | |||||||||||||||||||||||||||||||
QVC-Germany | 225 | 244 | |||||||||||||||||||||||||||||||
QVC-U.K. | 129 | 128 | |||||||||||||||||||||||||||||||
QVC-U.K. | 129 | 129 | |||||||||||||||||||||||||||||||
QVC-Italy | 65 | 47 | |||||||||||||||||||||||||||||||
QVC-Italy | 68 | 65 | |||||||||||||||||||||||||||||||
Consolidated QVC | $ | 1,106 | 1,131 | ||||||||||||||||||||||||||||||
Consolidated QVC | $ | 1,076 | 1,106 | ||||||||||||||||||||||||||||||
Reconciliation of Adjusted OIBDA to Income before Income Taxes | ' | ' | |||||||||||||||||||||||||||||||
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | ||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | (in millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||
Adjusted OIBDA | $ | 439 | 434 | 851 | 838 | Adjusted OIBDA | $ | 1,841 | 1,828 | 1,733 | |||||||||||||||||||||||
Stock‑based compensation | (10 | ) | (9 | ) | (18 | ) | (19 | ) | Stock‑based compensation | (38 | ) | (34 | ) | (22 | ) | ||||||||||||||||||
Depreciation and amortization | (145 | ) | (140 | ) | (289 | ) | (274 | ) | Depreciation and amortization | (558 | ) | (526 | ) | (574 | ) | ||||||||||||||||||
Equity in losses of investee | (2 | ) | (2 | ) | (3 | ) | (1 | ) | Equity in losses of investee | (4 | ) | (4 | ) | (2 | ) | ||||||||||||||||||
Gains on financial instruments | — | 3 | — | 15 | Gains on financial instruments | 15 | 48 | 50 | |||||||||||||||||||||||||
Interest expense, net | (60 | ) | (50 | ) | (122 | ) | (113 | ) | Interest expense, net | (214 | ) | (233 | ) | (229 | ) | ||||||||||||||||||
Foreign currency gain (loss) | 1 | — | — | (1 | ) | Foreign currency gain (loss) | 1 | 2 | (2 | ) | |||||||||||||||||||||||
Loss on extinguishment of debt | — | (16 | ) | — | (57 | ) | Loss on extinguishment of debt | (57 | ) | — | — | ||||||||||||||||||||||
Income before income taxes | $ | 223 | 220 | 419 | 388 | Income before income taxes | $ | 986 | 1,081 | 954 | |||||||||||||||||||||||
Other_Comprehensive_Income_Tab1
Other Comprehensive Income (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ' | ||||||||||||||
The change in the component of accumulated other comprehensive income, net of taxes ("AOCI"), is summarized as follows: | The change in the component of accumulated other comprehensive income, net of taxes ("AOCI"), is summarized as follows: | |||||||||||||||
(in millions) | Foreign currency translation adjustments | AOCI | (in millions) | Foreign currency translation adjustments | AOCI | |||||||||||
Balance at January 1, 2013 | $ | 186 | 186 | Balance at January 1, 2011 | $ | 209 | 209 | |||||||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (88 | ) | (88 | ) | Other comprehensive loss attributable to QVC, Inc. shareholder | (15 | ) | (15 | ) | |||||||
Balance at June 30, 2013 | 98 | 98 | Balance at December 31, 2011 | 194 | 194 | |||||||||||
Other comprehensive loss attributable to QVC, Inc. shareholder | (8 | ) | (8 | ) | ||||||||||||
Balance at January 1, 2014 | $ | 139 | 139 | Balance at December 31, 2012 | 186 | 186 | ||||||||||
Other comprehensive income attributable to QVC, Inc. stockholder | 15 | 15 | Other comprehensive loss attributable to QVC, Inc. shareholder | (47 | ) | (47 | ) | |||||||||
Balance at December 31, 2013 | 139 | 139 | ||||||||||||||
Balance at June 30, 2014 | 154 | 154 | ||||||||||||||
Schedule of Component of Comprehensive Income (Loss) | ' | ' | ||||||||||||||
The following table summarizes the tax effects related to the component of other comprehensive income: | The following table summarizes the tax effects related to the component of other comprehensive income: | |||||||||||||||
(in millions) | Before-tax amount | Tax (expense) benefit | Net-of-tax amount | (in millions) | Before-tax amount | Tax (expense) benefit | Net-of-tax amount | |||||||||
Three months ended June 30, 2014: | Year ended December 31, 2013: | |||||||||||||||
Foreign currency translation adjustments | $ | 2 | — | 2 | Foreign currency translation adjustments | $ | (64 | ) | (8 | ) | (72 | ) | ||||
Other comprehensive loss | (64 | ) | (8 | ) | (72 | ) | ||||||||||
Other comprehensive income | 2 | — | 2 | |||||||||||||
Year ended December 31, 2012: | ||||||||||||||||
Three months ended June 30, 2013: | Foreign currency translation adjustments | $ | (48 | ) | 21 | (27 | ) | |||||||||
Foreign currency translation adjustments | $ | (13 | ) | (3 | ) | (16 | ) | Other comprehensive loss | (48 | ) | 21 | (27 | ) | |||
Other comprehensive loss | (13 | ) | (3 | ) | (16 | ) | ||||||||||
Six months ended June 30, 2014: | Year ended December 31, 2011: | |||||||||||||||
Foreign currency translation adjustments | $ | 21 | (3 | ) | 18 | Foreign currency translation adjustments | $ | (20 | ) | 10 | (10 | ) | ||||
Other comprehensive income (loss) | 21 | (3 | ) | 18 | Other comprehensive loss | (20 | ) | 10 | (10 | ) | ||||||
Six months ended June 30, 2013: | ||||||||||||||||
Foreign currency translation adjustments | $ | (129 | ) | 22 | (107 | ) | ||||||||||
Other comprehensive (loss) income | (129 | ) | 22 | (107 | ) | |||||||||||
GuarantorNonGuarantor_Subsidia8
Guarantor/Non-Guarantor Subsidiary Financial Information (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Schedule of Effect of Prior Period Adjustments on Equity [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||
The effect of the adjustment on equity as of January 1, 2012 was as follows: | ||||||||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||||||
As previously reported | $ | 7,890 | 3,465 | 1,716 | (5,052 | ) | 8,019 | |||||||||||||||||||||||||||
Adjustment | — | 450 | 465 | (915 | ) | — | ||||||||||||||||||||||||||||
Adjusted | $ | 7,890 | 3,915 | 2,181 | (5,967 | ) | 8,019 | |||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Period | ' | ' | ||||||||||||||||||||||||||||||||
Condensed consolidating balance sheets | ||||||||||||||||||||||||||||||||||
Consolidating balance sheets | ||||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | December 31, 2013 | ||||||||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated— | |||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | issuer— | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||
Assets | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||||||||||
Current assets: | Assets | |||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 18 | 162 | 368 | — | 548 | Cash and cash equivalents | $ | 78 | 133 | 246 | — | 457 | |||||||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||||||||||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | Accounts receivable, net | 816 | — | 295 | — | 1,111 | |||||||||||||||||||||||
Inventories | 684 | — | 247 | — | 931 | |||||||||||||||||||||||||||||
Accounts receivable, net | 490 | — | 266 | — | 756 | Deferred income taxes | 146 | — | 16 | — | 162 | |||||||||||||||||||||||
Prepaid expenses | 20 | — | 27 | — | 47 | |||||||||||||||||||||||||||||
Inventories | 725 | — | 264 | — | 989 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Deferred income taxes | 147 | — | 18 | — | 165 | Total current assets | 1,755 | 133 | 834 | — | 2,722 | |||||||||||||||||||||||
Property, plant and equipment, net | 265 | 67 | 774 | — | 1,106 | |||||||||||||||||||||||||||||
Prepaid expenses | 28 | — | 29 | — | 57 | Cable and satellite television distribution rights, net | — | 510 | 114 | — | 624 | |||||||||||||||||||||||
Goodwill | 4,169 | — | 1,028 | — | 5,197 | |||||||||||||||||||||||||||||
Total current assets | 1,419 | 162 | 948 | — | 2,529 | Other intangible assets, net | 1,128 | 2,050 | 158 | — | 3,336 | |||||||||||||||||||||||
Other noncurrent assets | 8 | — | 63 | — | 71 | |||||||||||||||||||||||||||||
Property and equipment, net | 253 | 66 | 757 | — | 1,076 | Investments in subsidiaries | 4,894 | 1,628 | — | (6,522 | ) | — | ||||||||||||||||||||||
Cable and satellite television distribution rights, net | — | 441 | 99 | — | 540 | | | | | | | | | | | | | | | | | | ||||||||||||
Total assets | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | |||||||||||||||||||||||||||
Goodwill | 4,169 | — | 1,041 | — | 5,210 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Other intangible assets, net | 1,092 | 2,049 | 102 | — | 3,243 | Liabilities and equity | ||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||||
Other noncurrent assets | 9 | — | 60 | — | 69 | Current portion of debt and capital lease obligations | $ | 2 | — | 11 | — | 13 | ||||||||||||||||||||||
Accounts payable—trade | 266 | — | 159 | — | 425 | |||||||||||||||||||||||||||||
Investments in subsidiaries | 4,893 | 1,601 | — | (6,494 | ) | — | Accrued liabilities | 463 | 96 | 470 | — | 1,029 | ||||||||||||||||||||||
Intercompany accounts payable (receivable) | 1,019 | (879 | ) | (140 | ) | — | — | |||||||||||||||||||||||||||
Total assets | $ | 11,835 | 4,319 | 3,007 | (6,494 | ) | 12,667 | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Liabilities and equity | Total current liabilities | 1,750 | (783 | ) | 500 | — | 1,467 | |||||||||||||||||||||||||||
Current liabilities: | Long-term portion of debt and capital lease obligations | 3,745 | — | 55 | — | 3,800 | ||||||||||||||||||||||||||||
Deferred compensation | 13 | — | 1 | — | 14 | |||||||||||||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 9 | — | 11 | Deferred income taxes | 399 | 923 | 4 | — | 1,326 | ||||||||||||||||||||||
Other long-term liabilities | 90 | — | 18 | — | 108 | |||||||||||||||||||||||||||||
Accounts payable-trade | 275 | — | 195 | — | 470 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Accrued liabilities | 150 | 86 | 507 | — | 743 | Total liabilities | 5,997 | 140 | 578 | — | 6,715 | |||||||||||||||||||||||
Intercompany accounts payable (receivable) | 1,084 | (814 | ) | (270 | ) | — | — | | | | | | | | | | | | | | | | | | ||||||||||
Equity: | ||||||||||||||||||||||||||||||||||
Total current liabilities | 1,511 | (728 | ) | 441 | — | 1,224 | QVC, Inc. shareholder's equity | 6,222 | 4,248 | 2,274 | (6,522 | ) | 6,222 | |||||||||||||||||||||
Noncontrolling interest | — | — | 119 | — | 119 | |||||||||||||||||||||||||||||
Long-term portion of debt and capital lease obligations | 3,886 | — | 51 | — | 3,937 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Deferred compensation | 14 | — | — | — | 14 | Total equity | 6,222 | 4,248 | 2,393 | (6,522 | ) | 6,341 | ||||||||||||||||||||||
Deferred income taxes | 319 | 901 | 3 | — | 1,223 | | | | | | | | | | | | | | | | | | ||||||||||||
Total liabilities and equity | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | |||||||||||||||||||||||||||
Other long-term liabilities | 109 | — | 48 | — | 157 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Total liabilities | 5,839 | 173 | 543 | — | 6,555 | |||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||
QVC, Inc. stockholder's equity | 5,996 | 4,146 | 2,348 | (6,494 | ) | 5,996 | ||||||||||||||||||||||||||||
Noncontrolling interest | — | — | 116 | — | 116 | |||||||||||||||||||||||||||||
Total equity | 5,996 | 4,146 | 2,464 | (6,494 | ) | 6,112 | ||||||||||||||||||||||||||||
Total liabilities and equity | $ | 11,835 | 4,319 | 3,007 | (6,494 | ) | 12,667 | |||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Period | ' | ' | ||||||||||||||||||||||||||||||||
Condensed consolidating balance sheets | ||||||||||||||||||||||||||||||||||
Consolidating balance sheets—Adjusted | ||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | December 31, 2012 | ||||||||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated— | |||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | issuer— | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||
Assets | QVC, Inc. | guarantors | subsidiaries | subsidiaries | ||||||||||||||||||||||||||||||
Current assets: | Assets | |||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 78 | 133 | 246 | — | 457 | Cash and cash equivalents | $ | 75 | 165 | 300 | — | 540 | |||||||||||||||||||||
Restricted cash | 13 | — | 2 | — | 15 | |||||||||||||||||||||||||||||
Restricted cash | 11 | — | 3 | — | 14 | Accounts receivable, net | 747 | — | 308 | — | 1,055 | |||||||||||||||||||||||
Inventories | 691 | — | 218 | — | 909 | |||||||||||||||||||||||||||||
Accounts receivable, net | 816 | — | 295 | — | 1,111 | Deferred income taxes | 131 | — | 20 | — | 151 | |||||||||||||||||||||||
Prepaid expenses | 19 | — | 34 | — | 53 | |||||||||||||||||||||||||||||
Inventories | 684 | — | 247 | — | 931 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Deferred income taxes | 146 | — | 16 | — | 162 | Total current assets | 1,676 | 165 | 882 | — | 2,723 | |||||||||||||||||||||||
Property, plant and equipment, net | 247 | 67 | 817 | — | 1,131 | |||||||||||||||||||||||||||||
Prepaid expenses | 20 | — | 27 | — | 47 | Cable and satellite television distribution rights, net | — | 618 | 146 | — | 764 | |||||||||||||||||||||||
Goodwill | 4,169 | — | 1,065 | — | 5,234 | |||||||||||||||||||||||||||||
Total current assets | 1,755 | 133 | 834 | — | 2,722 | Other intangible assets, net | 1,280 | 2,049 | 180 | — | 3,509 | |||||||||||||||||||||||
Other noncurrent assets | 14 | — | 63 | — | 77 | |||||||||||||||||||||||||||||
Property and equipment, net | 265 | 67 | 774 | — | 1,106 | Investments in subsidiaries | 4,844 | 1,838 | — | (6,682 | ) | — | ||||||||||||||||||||||
Cable and satellite television distribution rights, net | — | 510 | 114 | — | 624 | | | | | | | | | | | | | | | | | | ||||||||||||
Total assets | $ | 12,230 | 4,737 | 3,153 | (6,682 | ) | 13,438 | |||||||||||||||||||||||||||
Goodwill | 4,169 | — | 1,028 | — | 5,197 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Other intangible assets, net | 1,128 | 2,050 | 158 | — | 3,336 | | | | | | | | | | | | | | | | | | ||||||||||||
Other noncurrent assets | 8 | — | 63 | — | 71 | Liabilities and equity | ||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||||
Investments in subsidiaries | 4,894 | 1,628 | — | (6,522 | ) | — | Current portion of debt and capital lease obligations | $ | 2 | — | 10 | — | 12 | |||||||||||||||||||||
Accounts payable—trade | 324 | — | 242 | — | 566 | |||||||||||||||||||||||||||||
Total assets | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | Accrued liabilities | 402 | 106 | 447 | — | 955 | |||||||||||||||||||||
Intercompany accounts payable (receivable) | 829 | (816 | ) | (13 | ) | — | — | |||||||||||||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||||||||||||
Current liabilities: | | | | | | | | | | | | | | | | | | |||||||||||||||||
Total current liabilities | 1,557 | (710 | ) | 686 | — | 1,533 | ||||||||||||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 11 | — | 13 | Long-term portion of debt and capital lease obligations | 3,404 | — | 61 | — | 3,465 | ||||||||||||||||||||||
Deferred compensation | 11 | — | 1 | — | 12 | |||||||||||||||||||||||||||||
Accounts payable-trade | 336 | — | 158 | — | 494 | Deferred income taxes | 431 | 964 | 15 | — | 1,410 | |||||||||||||||||||||||
Other long-term liabilities | 137 | 17 | 30 | — | 184 | |||||||||||||||||||||||||||||
Accrued liabilities | 393 | 96 | 471 | — | 960 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Intercompany accounts payable (receivable) | 1,019 | (879 | ) | (140 | ) | — | — | Total liabilities | 5,540 | 271 | 793 | — | 6,604 | |||||||||||||||||||||
Total current liabilities | 1,750 | (783 | ) | 500 | — | 1,467 | | | | | | | | | | | | | | | | | | |||||||||||
Equity: | ||||||||||||||||||||||||||||||||||
Long-term portion of debt and capital lease obligations | 3,745 | — | 55 | — | 3,800 | QVC, Inc. shareholder's equity | 6,690 | 4,466 | 2,216 | (6,682 | ) | 6,690 | ||||||||||||||||||||||
Noncontrolling interest | — | — | 144 | — | 144 | |||||||||||||||||||||||||||||
Deferred compensation | 13 | — | 1 | — | 14 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Deferred income taxes | 399 | 923 | 4 | — | 1,326 | Total equity | 6,690 | 4,466 | 2,360 | (6,682 | ) | 6,834 | ||||||||||||||||||||||
Other long-term liabilities | 90 | — | 18 | — | 108 | | | | | | | | | | | | | | | | | | ||||||||||||
Total liabilities and equity | $ | 12,230 | 4,737 | 3,153 | (6,682 | ) | 13,438 | |||||||||||||||||||||||||||
Total liabilities | 5,997 | 140 | 578 | — | 6,715 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Equity: | | | | | | | | | | | | | | | | | | |||||||||||||||||
QVC, Inc. stockholder's equity | 6,222 | 4,248 | 2,274 | (6,522 | ) | 6,222 | ||||||||||||||||||||||||||||
Noncontrolling interest | — | — | 119 | — | 119 | |||||||||||||||||||||||||||||
Total equity | 6,222 | 4,248 | 2,393 | (6,522 | ) | 6,341 | ||||||||||||||||||||||||||||
Total liabilities and equity | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | |||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Period | ' | ' | ||||||||||||||||||||||||||||||||
Condensed consolidating statements of operations | Consolidating statements of operations | |||||||||||||||||||||||||||||||||
Six months ended June 30, 2014 | Year ended December, 2013 | |||||||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||
Net revenue | $ | 2,692 | 364 | 1,399 | (455 | ) | 4,000 | Net revenue | $ | 5,914 | 841 | 2,914 | (1,046 | ) | 8,623 | |||||||||||||||||||
Cost of goods sold | 1,692 | 48 | 878 | (112 | ) | 2,506 | Cost of goods sold | 3,804 | 107 | 1,831 | (277 | ) | 5,465 | |||||||||||||||||||||
Gross profit | 1,000 | 316 | 521 | (343 | ) | 1,494 | Gross profit | 2,110 | 734 | 1,083 | (769 | ) | 3,158 | |||||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||||||||
Operating | 82 | 95 | 181 | — | 358 | Operating | 168 | 214 | 358 | — | 740 | |||||||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 466 | (1 | ) | 181 | (343 | ) | 303 | Selling, general and administrative, including stock-based compensation | 1,028 | — | 356 | (769 | ) | 615 | ||||||||||||||||||||
Depreciation | 19 | 3 | 44 | — | 66 | Depreciation | 38 | 6 | 83 | — | 127 | |||||||||||||||||||||||
Amortization | 110 | 77 | 36 | — | 223 | Amortization of intangible assets | 204 | 146 | 81 | — | 431 | |||||||||||||||||||||||
Intercompany management expense (income) | 40 | (8 | ) | (32 | ) | — | — | Intercompany management expense (income) | 50 | 1 | (51 | ) | — | — | ||||||||||||||||||||
717 | 166 | 410 | (343 | ) | 950 | 1,488 | 367 | 827 | (769 | ) | 1,913 | |||||||||||||||||||||||
Operating income | 283 | 150 | 111 | — | 544 | Operating income | 622 | 367 | 256 | — | 1,245 | |||||||||||||||||||||||
Other (expense) income: | Other (expense) income: | |||||||||||||||||||||||||||||||||
Equity in losses of investee | — | — | (3 | ) | — | (3 | ) | Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||||
Interest expense, net | (113 | ) | — | (9 | ) | — | (122 | ) | Gains on financial instruments | 12 | — | 3 | — | 15 | ||||||||||||||||||||
Foreign currency (loss) gain | (3 | ) | — | 3 | — | — | Interest expense, net | (214 | ) | — | — | — | (214 | ) | ||||||||||||||||||||
Intercompany interest and other (expense) income | (10 | ) | 26 | 4 | (20 | ) | — | Foreign currency (loss) gain | (13 | ) | — | 14 | — | 1 | ||||||||||||||||||||
(126 | ) | 26 | (5 | ) | (20 | ) | (125 | ) | Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | ||||||||||||||||||
Income before income taxes | 157 | 176 | 106 | (20 | ) | 419 | Intercompany interest (expense) income | (16 | ) | 51 | (35 | ) | — | — | ||||||||||||||||||||
Income tax expense | (7 | ) | (52 | ) | (98 | ) | — | (157 | ) | (288 | ) | 51 | (22 | ) | — | (259 | ) | |||||||||||||||||
Equity in earnings (losses) of subsidiaries, net of tax | 112 | (19 | ) | — | (93 | ) | — | Income before income taxes | 334 | 418 | 234 | — | 986 | |||||||||||||||||||||
Net income | 262 | 105 | 8 | (113 | ) | 262 | Income tax expense | (119 | ) | (132 | ) | (102 | ) | — | (353 | ) | ||||||||||||||||||
Less net income attributable to the noncontrolling interest | (19 | ) | — | (19 | ) | 19 | (19 | ) | Equity in earnings of subsidiaries, net of tax | 418 | 67 | — | (485 | ) | — | |||||||||||||||||||
Net income (loss) attributable to QVC, Inc. stockholder | $ | 243 | 105 | (11 | ) | (94 | ) | 243 | Net income | 633 | 353 | 132 | (485 | ) | 633 | |||||||||||||||||||
Condensed consolidating statements of operations | Less net income attributable to the noncontrolling interest | (45 | ) | — | (45 | ) | 45 | (45 | ) | |||||||||||||||||||||||||
Net income attributable to QVC, Inc. shareholder | $ | 588 | 353 | 87 | (440 | ) | 588 | |||||||||||||||||||||||||||
Three months ended June 30, 2014 | ||||||||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||||||
Net revenue | $ | 1,368 | 187 | 692 | (233 | ) | 2,014 | |||||||||||||||||||||||||||
Cost of goods sold | 850 | 23 | 432 | (55 | ) | 1,250 | ||||||||||||||||||||||||||||
Gross profit | 518 | 164 | 260 | (178 | ) | 764 | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||
Operating | 42 | 49 | 89 | — | 180 | |||||||||||||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 243 | 1 | 89 | (178 | ) | 155 | ||||||||||||||||||||||||||||
Depreciation | 10 | 1 | 22 | — | 33 | |||||||||||||||||||||||||||||
Amortization | 58 | 38 | 16 | — | 112 | |||||||||||||||||||||||||||||
Intercompany management expense (income) | 20 | (5 | ) | (15 | ) | — | — | |||||||||||||||||||||||||||
373 | 84 | 201 | (178 | ) | 480 | |||||||||||||||||||||||||||||
Operating income | 145 | 80 | 59 | — | 284 | |||||||||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||||||||||||
Interest expense, net | (60 | ) | — | — | — | (60 | ) | |||||||||||||||||||||||||||
Foreign currency (loss) gain | (1 | ) | — | 2 | — | 1 | ||||||||||||||||||||||||||||
Intercompany interest and other (expense) income | (5 | ) | 13 | 12 | (20 | ) | — | |||||||||||||||||||||||||||
(66 | ) | 13 | 12 | (20 | ) | (61 | ) | |||||||||||||||||||||||||||
Income before income taxes | 79 | 93 | 71 | (20 | ) | 223 | ||||||||||||||||||||||||||||
Income tax expense | (27 | ) | (28 | ) | (28 | ) | — | (83 | ) | |||||||||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 88 | 29 | — | (117 | ) | — | ||||||||||||||||||||||||||||
Net income | 140 | 94 | 43 | (137 | ) | 140 | ||||||||||||||||||||||||||||
Less net income attributable to the noncontrolling interest | (10 | ) | — | (10 | ) | 10 | (10 | ) | ||||||||||||||||||||||||||
Net income attributable to QVC, Inc. stockholder | $ | 130 | 94 | 33 | (127 | ) | 130 | |||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Period | ' | ' | ||||||||||||||||||||||||||||||||
Condensed consolidating statements of operations - Adjusted | Consolidating statements of operations - Adjusted | |||||||||||||||||||||||||||||||||
Three months ended June 30, 2013 | Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||
Net revenue | $ | 1,326 | 182 | 681 | (228 | ) | 1,961 | Net revenue | $ | 5,485 | 790 | 2,988 | (995 | ) | 8,268 | |||||||||||||||||||
Cost of goods sold | 836 | 23 | 427 | (59 | ) | 1,227 | Cost of goods sold | 3,507 | 120 | 1,906 | (255 | ) | 5,278 | |||||||||||||||||||||
Gross profit | 490 | 159 | 254 | (169 | ) | 734 | Gross profit | 1,978 | 670 | 1,082 | (740 | ) | 2,990 | |||||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||||||||
Operating | 38 | 48 | 85 | — | 171 | Operating | 166 | 201 | 377 | — | 744 | |||||||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 227 | — | 80 | (169 | ) | 138 | Selling, general and administrative, including stock-based compensation | 947 | — | 328 | (740 | ) | 535 | |||||||||||||||||||||
Depreciation | 9 | 2 | 22 | — | 33 | Depreciation | 36 | 4 | 95 | — | 135 | |||||||||||||||||||||||
Amortization | 51 | 36 | 20 | — | 107 | Amortization of intangible assets | 242 | 133 | 64 | — | 439 | |||||||||||||||||||||||
Intercompany management expense (income) | 15 | (4 | ) | (11 | ) | — | — | Intercompany management expense (income) | 89 | (27 | ) | (62 | ) | — | — | |||||||||||||||||||
340 | 82 | 196 | (169 | ) | 449 | 1,480 | 311 | 802 | (740 | ) | 1,853 | |||||||||||||||||||||||
Operating income | 150 | 77 | 58 | — | 285 | Operating income | 498 | 359 | 280 | — | 1,137 | |||||||||||||||||||||||
Other (expense) income: | Other (expense) income: | |||||||||||||||||||||||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||||
Gains on financial instruments | — | — | 3 | — | 3 | Gains on financial instruments | 50 | — | — | — | 50 | |||||||||||||||||||||||
Interest (expense) income, net | (50 | ) | (1 | ) | 1 | — | (50 | ) | Interest (expense) income | (230 | ) | — | 1 | — | (229 | ) | ||||||||||||||||||
Foreign currency (loss) gain | (1 | ) | — | 1 | — | — | Foreign currency (loss) gain | (3 | ) | (2 | ) | 3 | — | (2 | ) | |||||||||||||||||||
Loss on extinguishment of debt | (16 | ) | — | — | — | (16 | ) | Intercompany interest (expense) income | (9 | ) | 53 | (44 | ) | — | — | |||||||||||||||||||
Intercompany interest and other (expense) income | (4 | ) | 12 | (8 | ) | — | — | (192 | ) | 51 | (42 | ) | — | (183 | ) | |||||||||||||||||||
(71 | ) | 11 | (5 | ) | — | (65 | ) | Income before income taxes | 306 | 410 | 238 | — | 954 | |||||||||||||||||||||
Income before income taxes | 79 | 88 | 53 | — | 220 | Income tax expense | (110 | ) | (124 | ) | (108 | ) | — | (342 | ) | |||||||||||||||||||
Income tax expense | (21 | ) | (32 | ) | (28 | ) | — | (81 | ) | Equity in earnings of subsidiaries, net of tax | 416 | 70 | — | (486 | ) | — | ||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 81 | 11 | — | (92 | ) | — | Net income | 612 | 356 | 130 | (486 | ) | 612 | |||||||||||||||||||||
Net income | 139 | 67 | 25 | (92 | ) | 139 | Less net income attributable to the noncontrolling interest | (52 | ) | — | (52 | ) | 52 | (52 | ) | |||||||||||||||||||
Less net income attributable to the noncontrolling interest | (13 | ) | — | (13 | ) | 13 | (13 | ) | Net income attributable to QVC, Inc. shareholder | $ | 560 | 356 | 78 | (434 | ) | 560 | ||||||||||||||||||
Net income attributable to QVC, Inc. stockholder | $ | 126 | 67 | 12 | (79 | ) | 126 | Consolidating statements of operations - Adjusted | ||||||||||||||||||||||||||
Condensed consolidating statements of operations - Adjusted | ||||||||||||||||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||||||||||||
Six months ended June 30, 2013 | issuer- | subsidiary | non-guarantor | QVC, Inc. and | ||||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | Net revenue | $ | 5,653 | 819 | 3,078 | (1,034 | ) | 8,516 | |||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||||||
Net revenue | $ | 2,640 | 365 | 1,389 | (459 | ) | 3,935 | Cost of goods sold | 3,644 | 116 | 1,941 | (282 | ) | 5,419 | ||||||||||||||||||||
Cost of goods sold | 1,679 | 49 | 871 | (120 | ) | 2,479 | Gross profit | 2,009 | 703 | 1,137 | (752 | ) | 3,097 | |||||||||||||||||||||
Gross profit | 961 | 316 | 518 | (339 | ) | 1,456 | Operating expenses: | |||||||||||||||||||||||||||
Operating expenses: | Operating | 140 | 206 | 369 | — | 715 | ||||||||||||||||||||||||||||
Operating | 75 | 93 | 176 | — | 344 | Selling, general and administrative, including stock-based compensation | 1,002 | 1 | 337 | (752 | ) | 588 | ||||||||||||||||||||||
Selling, general and administrative, including stock-based compensation | 463 | — | 169 | (339 | ) | 293 | Depreciation | 35 | 4 | 87 | — | 126 | ||||||||||||||||||||||
Depreciation | 19 | 3 | 41 | — | 63 | Amortization of intangible assets | 204 | 130 | 66 | — | 400 | |||||||||||||||||||||||
Amortization | 102 | 70 | 39 | — | 211 | Intercompany management expense (income) | 60 | (14 | ) | (46 | ) | — | — | |||||||||||||||||||||
Intercompany management expense (income) | 32 | (7 | ) | (25 | ) | — | — | 1,441 | 327 | 813 | (752 | ) | 1,829 | |||||||||||||||||||||
691 | 159 | 400 | (339 | ) | 911 | Operating income | 568 | 376 | 324 | — | 1,268 | |||||||||||||||||||||||
Operating income | 270 | 157 | 118 | — | 545 | Other (expense) income: | ||||||||||||||||||||||||||||
Other (expense) income: | Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||||||||||||
Equity in losses of investee | — | — | (1 | ) | — | (1 | ) | Gains on financial instruments | 48 | — | — | — | 48 | |||||||||||||||||||||
Gains on financial instruments | 12 | — | 3 | — | 15 | Interest expense, net | (233 | ) | — | — | — | (233 | ) | |||||||||||||||||||||
Interest expense, net | (112 | ) | (1 | ) | — | — | (113 | ) | Foreign currency (loss) gain | (10 | ) | 4 | 8 | — | 2 | |||||||||||||||||||
Foreign currency (loss) gain | (2 | ) | (1 | ) | 2 | — | (1 | ) | Intercompany interest (expense) income | (13 | ) | 51 | (38 | ) | — | — | ||||||||||||||||||
Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | (208 | ) | 55 | (34 | ) | — | (187 | ) | |||||||||||||||||||
Intercompany interest and other (expense) income | (7 | ) | 25 | (18 | ) | — | — | Income before income taxes | 360 | 431 | 290 | — | 1,081 | |||||||||||||||||||||
(166 | ) | 23 | (14 | ) | — | (157 | ) | Income tax expense | (116 | ) | (141 | ) | (137 | ) | — | (394 | ) | |||||||||||||||||
Income before income taxes | 104 | 180 | 104 | — | 388 | Equity in earnings of subsidiaries, net of tax | 443 | 93 | — | (536 | ) | — | ||||||||||||||||||||||
Income tax expense | (32 | ) | (60 | ) | (51 | ) | — | (143 | ) | Net income | 687 | 383 | 153 | (536 | ) | 687 | ||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 173 | 26 | — | (199 | ) | — | Less net income attributable to the noncontrolling interest | (63 | ) | — | (63 | ) | 63 | (63 | ) | |||||||||||||||||||
Net income | 245 | 146 | 53 | (199 | ) | 245 | Net income attributable to QVC, Inc. shareholder | $ | 624 | 383 | 90 | (473 | ) | 624 | ||||||||||||||||||||
Less net income attributable to the noncontrolling interest | (25 | ) | — | (25 | ) | 25 | (25 | ) | ||||||||||||||||||||||||||
Net income attributable to QVC, Inc. stockholder | $ | 220 | 146 | 28 | (174 | ) | 220 | |||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Period | ' | ' | ||||||||||||||||||||||||||||||||
Consolidating statements of comprehensive income | ||||||||||||||||||||||||||||||||||
Condensed consolidating statements of comprehensive income | ||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||
Three months ended June 30, 2014 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | Net income | $ | 633 | 353 | 132 | (485 | ) | 633 | |||||||||||||||||||||||
Net income | $ | 140 | 94 | 43 | (137 | ) | 140 | |||||||||||||||||||||||||||
Foreign currency translation adjustments | 2 | — | 2 | (2 | ) | 2 | Foreign currency translation adjustments | (72 | ) | — | (72 | ) | 72 | (72 | ) | |||||||||||||||||||
| | | | | | | | | | | | | | | | | Total comprehensive income | 561 | 353 | 60 | (413 | ) | 561 | |||||||||||
Total comprehensive income | 142 | 94 | 45 | (139 | ) | 142 | ||||||||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (10 | ) | — | (10 | ) | 10 | (10 | ) | Comprehensive income attributable to noncontrolling interest | (20 | ) | — | (20 | ) | 20 | (20 | ) | |||||||||||||||||
| | | | | | | | | | | | | | | | | Comprehensive income attributable to QVC, Inc. shareholder | $ | 541 | 353 | 40 | (393 | ) | 541 | ||||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 132 | 94 | 35 | (129 | ) | 132 | |||||||||||||||||||||||||||
Condensed consolidating statements of comprehensive income | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||||||
Net income | $ | 262 | 105 | 8 | (113 | ) | 262 | |||||||||||||||||||||||||||
Foreign currency translation adjustments | 18 | — | 18 | (18 | ) | 18 | ||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Total comprehensive income | 280 | 105 | 26 | (131 | ) | 280 | ||||||||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (22 | ) | — | (22 | ) | 22 | (22 | ) | ||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 258 | 105 | 4 | (109 | ) | 258 | |||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Period | ' | ' | ||||||||||||||||||||||||||||||||
Three months ended June 30, 2013 | Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||
Net income | $ | 139 | 67 | 25 | (92 | ) | 139 | Net income | 612 | 356 | 130 | (486 | ) | 612 | ||||||||||||||||||||
Foreign currency translation adjustments | (16 | ) | — | (16 | ) | 16 | (16 | ) | Foreign currency translation adjustments | (10 | ) | — | (10 | ) | 10 | (10 | ) | |||||||||||||||||
Total comprehensive income | 123 | 67 | 9 | (76 | ) | 123 | Total comprehensive income | 602 | 356 | 120 | (476 | ) | 602 | |||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (7 | ) | — | (7 | ) | 7 | (7 | ) | Comprehensive income attributable to noncontrolling interest | (57 | ) | — | (57 | ) | 57 | (57 | ) | |||||||||||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 116 | 67 | 2 | (69 | ) | 116 | Comprehensive income attributable to QVC, Inc. shareholder | $ | 545 | 356 | 63 | (419 | ) | 545 | |||||||||||||||||||
Condensed consolidating statements of comprehensive income - Adjusted | ||||||||||||||||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2013 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | Net income | $ | 687 | 383 | 153 | (536 | ) | 687 | |||||||||||||||||||||||
Net income | $ | 245 | 146 | 53 | (199 | ) | 245 | |||||||||||||||||||||||||||
Foreign currency translation adjustments | (27 | ) | — | (27 | ) | 27 | (27 | ) | ||||||||||||||||||||||||||
Foreign currency translation adjustments | (107 | ) | — | (107 | ) | 107 | (107 | ) | ||||||||||||||||||||||||||
Total comprehensive income | 660 | 383 | 126 | (509 | ) | 660 | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | 138 | 146 | (54 | ) | (92 | ) | 138 | |||||||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (44 | ) | — | (44 | ) | 44 | (44 | ) | ||||||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | (6 | ) | — | (6 | ) | 6 | (6 | ) | ||||||||||||||||||||||||||
Comprehensive income attributable to QVC, Inc. shareholder | $ | 616 | 383 | 82 | (465 | ) | 616 | |||||||||||||||||||||||||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 132 | 146 | (60 | ) | (86 | ) | 132 | ||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Period | ' | ' | ||||||||||||||||||||||||||||||||
Condensed consolidating statements of cash flows | Consolidating statements of cash flows | |||||||||||||||||||||||||||||||||
Six months ended June 30, 2014 | Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||
Operating activities: | Operating activities: | |||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 217 | 172 | 160 | — | 549 | Net cash provided by operating activities | $ | 379 | 389 | 205 | — | 973 | |||||||||||||||||||||
Investing activities: | Investing activities: | |||||||||||||||||||||||||||||||||
Capital expenditures, net | (74 | ) | (1 | ) | 38 | (20 | ) | (57 | ) | Capital expenditures, net | (106 | ) | (8 | ) | (97 | ) | — | (211 | ) | |||||||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (8 | ) | — | — | (8 | ) | Expenditures for cable and satellite television distribution rights, net | — | (56 | ) | (2 | ) | — | (58 | ) | ||||||||||||||||||
Intercompany investing activities | 114 | 27 | — | (141 | ) | — | Decrease (increase) in restricted cash | 2 | — | (1 | ) | — | 1 | |||||||||||||||||||||
Net cash provided by (used in) investing activities | 40 | 18 | 38 | (161 | ) | (65 | ) | Changes in other noncurrent assets | (1 | ) | — | (1 | ) | — | (2 | ) | ||||||||||||||||||
Financing activities: | Intercompany investing activities | 368 | 277 | — | (645 | ) | — | |||||||||||||||||||||||||||
Principal payments of debt and capital lease obligations | (1,414 | ) | — | (5 | ) | — | (1,419 | ) | Net cash provided by (used in) investing activities | 263 | 213 | (101 | ) | (645 | ) | (270 | ) | |||||||||||||||||
Principal borrowings of debt from senior secured credit facility | 554 | — | — | — | 554 | Financing activities: | ||||||||||||||||||||||||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | — | — | — | 999 | Principal payments of debt and capital lease obligations | (2,375 | ) | — | (12 | ) | — | (2,387 | ) | ||||||||||||||||||||
Payment of debt origination fees | (12 | ) | — | — | — | (12 | ) | Principal borrowings of debt from senior secured credit facility | 1,674 | — | — | — | 1,674 | |||||||||||||||||||||
Other financing activities | (4 | ) | — | — | — | (4 | ) | Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | |||||||||||||||||||||
Dividends paid to Liberty | (480 | ) | — | — | — | (480 | ) | Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | |||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | |||||||||||||||||||
Net short-term intercompany debt borrowings (repayments) | 65 | 65 | (130 | ) | — | — | Other financing activities | 12 | — | — | — | 12 | ||||||||||||||||||||||
Intercompany financing activities | (25 | ) | (226 | ) | 90 | 161 | — | Dividends paid to Liberty | (1,005 | ) | — | — | — | (1,005 | ) | |||||||||||||||||||
Net cash used in financing activities | (317 | ) | (161 | ) | (70 | ) | 161 | (387 | ) | Dividends paid to noncontrolling interest | — | — | (45 | ) | — | (45 | ) | |||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (6 | ) | — | (6 | ) | Net short-term intercompany debt borrowings (repayments) | 190 | (63 | ) | (127 | ) | — | — | |||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (60 | ) | 29 | 122 | — | 91 | Intercompany financing activities | (123 | ) | (571 | ) | 49 | 645 | — | ||||||||||||||||||||
Cash and cash equivalents, beginning of period | 78 | 133 | 246 | — | 457 | Net cash used in financing activities | (639 | ) | (634 | ) | (135 | ) | 645 | (763 | ) | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 18 | 162 | 368 | — | 548 | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (23 | ) | — | (23 | ) | ||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 3 | (32 | ) | (54 | ) | — | (83 | ) | ||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 75 | 165 | 300 | — | 540 | |||||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 78 | 133 | 246 | — | 457 | ||||||||||||||||||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Period | ' | ' | ||||||||||||||||||||||||||||||||
Condensed consolidating statements of cash flows - Adjusted | Consolidating statements of cash flows - Adjusted | |||||||||||||||||||||||||||||||||
Six months ended June 30, 2013 | Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||
Operating activities: | Operating activities: | |||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 275 | 115 | 52 | — | 442 | Net cash provided by operating activities | $ | 225 | 380 | 213 | — | 818 | |||||||||||||||||||||
Investing activities: | Investing activities: | |||||||||||||||||||||||||||||||||
Capital expenditures, net | (33 | ) | — | (42 | ) | — | (75 | ) | Capital expenditures, net | (83 | ) | (8 | ) | (168 | ) | — | (259 | ) | ||||||||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (25 | ) | (1 | ) | — | (26 | ) | Expenditures for cable and satellite television distribution rights, net | — | (2 | ) | — | — | (2 | ) | ||||||||||||||||||
Changes in other noncurrent assets | 4 | — | (3 | ) | — | 1 | Decrease in restricted cash | 1 | — | — | — | 1 | ||||||||||||||||||||||
Intercompany investing activities | 258 | 149 | — | (407 | ) | — | Changes in other noncurrent assets and liabilities | 5 | — | (1 | ) | — | 4 | |||||||||||||||||||||
Net cash provided by (used in) investing activities | 229 | 124 | (46 | ) | (407 | ) | (100 | ) | Intercompany investing activities | 348 | 190 | — | (538 | ) | — | |||||||||||||||||||
Financing activities: | Net cash provided by (used in) investing activities | 271 | 180 | (169 | ) | (538 | ) | (256 | ) | |||||||||||||||||||||||||
Principal payments of debt and capital lease obligations | (1,690 | ) | — | (5 | ) | — | (1,695 | ) | Financing activities: | |||||||||||||||||||||||||
Principal borrowings of debt from senior secured credit facility | 1,053 | — | — | — | 1,053 | Principal payments of debt and capital lease obligations | (825 | ) | — | (12 | ) | — | (837 | ) | ||||||||||||||||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | Principal borrowings of debt from senior secured credit facility | 465 | — | — | — | 465 | |||||||||||||||||||||||
Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | Dividends paid to Liberty | (205 | ) | — | — | — | (205 | ) | |||||||||||||||||||
Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | Dividends paid to noncontrolling interest | — | — | (50 | ) | — | (50 | ) | |||||||||||||||||||
Other financing activities | 7 | — | — | — | 7 | Net short-term intercompany debt borrowings (repayments) | 104 | 2 | (106 | ) | — | — | ||||||||||||||||||||||
Dividends paid to Liberty | (765 | ) | — | — | — | (765 | ) | Intercompany financing activities | (76 | ) | (499 | ) | 37 | 538 | — | |||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | Net cash used in financing activities | (537 | ) | (497 | ) | (131 | ) | 538 | (627 | ) | |||||||||||||||||
Net short-term intercompany debt (repayments) borrowings | (21 | ) | 86 | (65 | ) | — | — | Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 4 | — | 4 | |||||||||||||||||||||
Intercompany financing activities | (143 | ) | (326 | ) | 62 | 407 | — | Net (decrease) increase in cash and cash equivalents | (41 | ) | 63 | (83 | ) | — | (61 | ) | ||||||||||||||||||
Net cash used in financing activities | (571 | ) | (240 | ) | (33 | ) | 407 | (437 | ) | Cash and cash equivalents, beginning of period | 44 | 160 | 417 | — | 621 | |||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (29 | ) | — | (29 | ) | Cash and cash equivalents, end of period | $ | 3 | 223 | 334 | — | 560 | ||||||||||||||||||||
Net decrease in cash and cash equivalents | (67 | ) | (1 | ) | (56 | ) | — | (124 | ) | Consolidating statements of cash flows - Adjusted | ||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 75 | 165 | 300 | — | 540 | |||||||||||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 8 | 164 | 244 | — | 416 | (in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | ||||||||||||||||||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||||||||||||||||||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 462 | 412 | 332 | — | 1,206 | ||||||||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||||||||||||
Capital expenditures, net | (76 | ) | (5 | ) | (165 | ) | — | (246 | ) | |||||||||||||||||||||||||
Expenditures for cable and satellite television distribution rights, net | — | (1 | ) | (1 | ) | — | (2 | ) | ||||||||||||||||||||||||||
Cash paid for joint ventures and acquisitions of businesses, net of cash received | — | — | (95 | ) | — | (95 | ) | |||||||||||||||||||||||||||
Decrease in restricted cash | 2 | — | — | — | 2 | |||||||||||||||||||||||||||||
Changes in other noncurrent assets | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||||||||||||
Intercompany investing activities | 443 | 265 | — | (708 | ) | — | ||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 366 | 259 | (261 | ) | (708 | ) | (344 | ) | ||||||||||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||||||||||||
Principal payments of debt and capital lease obligations | (1,237 | ) | — | (9 | ) | — | (1,246 | ) | ||||||||||||||||||||||||||
Principal borrowings of debt from senior secured credit facility | 1,717 | — | — | — | 1,717 | |||||||||||||||||||||||||||||
Proceeds from issuance of senior secured notes | 500 | — | — | — | 500 | |||||||||||||||||||||||||||||
Payment of debt origination fees | (7 | ) | — | — | — | (7 | ) | |||||||||||||||||||||||||||
Other financing activities | 20 | — | — | — | 20 | |||||||||||||||||||||||||||||
Dividends paid to Liberty | (1,817 | ) | — | — | — | (1,817 | ) | |||||||||||||||||||||||||||
Dividend paid to noncontrolling interest | — | — | (29 | ) | — | (29 | ) | |||||||||||||||||||||||||||
Net short-term intercompany debt borrowings (repayments) | 214 | (59 | ) | (155 | ) | — | — | |||||||||||||||||||||||||||
Intercompany financing activities | (146 | ) | (670 | ) | 108 | 708 | — | |||||||||||||||||||||||||||
Net cash used in financing activities | (756 | ) | (729 | ) | (85 | ) | 708 | (862 | ) | |||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (20 | ) | — | (20 | ) | |||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 72 | (58 | ) | (34 | ) | — | (20 | ) | ||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 3 | 223 | 334 | — | 560 | |||||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 75 | 165 | 300 | — | 540 | ||||||||||||||||||||||||||||
Basis_of_Presentation_Details1
Basis of Presentation (Details) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Oct. 03, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
Live Programming - U.S. | Live Programming - U.S. | Live Programming - Japan | Live Programming - Japan | Distribution - Germany | Distribution - Germany | Live Programming - Germany | Live Programming - Germany | Distribution - U.K. | Distribution - U.K. | Live Programming - U.K. | Live Programming - U.K. | Live Programming - Italy | Live Programming - Italy | Recorded Programming - Italy | Recorded Programming - Italy | Live Programming - CNRS | Live Programming - CNRS | Recorded Programming - CNRS | Recorded Programming - CNRS | CNR Home Shopping Co., Ltd. | CNR Home Shopping Co., Ltd. | QVC-Japan | QVC-Japan | HSN, Inc. | HSN, Inc. | Liberty | Liberty Digital Commerce common stock [Member] | QVC Group common stock [Member] | ||||||
General business information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hours of distribution per day | ' | ' | ' | ' | ' | '24 hours | '24 hours | '24 hours | '24 hours | '24 hours | '24 hours | '17 hours | '23 hours | '24 hours | '24 hours | '17 hours | '17 hours | '17 hours | '17 hours | '7 hours | '7 hours | '15 hours | '15 hours | '9 hours | '9 hours | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Days per year of programming | ' | ' | ' | ' | ' | '364 days | '364 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | 49.00% | ' | ' | ' | ' | ' | ' | ' |
Investment owned, percent of net assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | 60.00% | ' | ' | ' | ' | ' |
Noncontrolling interest, ownership percentage by noncontrolling owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 40.00% | ' | ' | ' | ' | ' |
Dividend paid to noncontrolling interest | $25 | $25 | $45 | $29 | $50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount in cash approved by board of directors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 970 | ' | ' |
Amount reattributed in cash to the Liberty Ventures Group relating to its assumption of liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30 | ' | ' |
Common stock exchange | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 10 |
Parent ownership in equity investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38.00% | 38.00% | ' | ' | ' |
Significant_Accounting_Policie3
Significant Accounting Policies Goodwill (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | $5,197 | $5,234 | $5,239 |
Goodwill, acquired | ' | ' | 21 |
Exchange rate fluctuations | 13 | -37 | -26 |
Balance as of June 30, 2014 | 5,210 | 5,197 | 5,234 |
QVC-U.S. | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | 4,190 | 4,190 | 4,169 |
Goodwill, acquired | ' | ' | 21 |
Exchange rate fluctuations | 0 | 0 | 0 |
Balance as of June 30, 2014 | 4,190 | 4,190 | 4,190 |
QVC-Japan | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | 288 | 349 | 393 |
Goodwill, acquired | ' | ' | 0 |
Exchange rate fluctuations | 6 | -61 | -44 |
Balance as of June 30, 2014 | 222 | 288 | 349 |
QVC-Germany | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | 348 | 334 | 328 |
Goodwill, acquired | ' | ' | 0 |
Exchange rate fluctuations | -3 | 14 | 6 |
Balance as of June 30, 2014 | 345 | 348 | 334 |
QVC-U.K. | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | 216 | 212 | 203 |
Goodwill, acquired | ' | ' | 0 |
Exchange rate fluctuations | 11 | 4 | 9 |
Balance as of June 30, 2014 | 299 | 216 | 212 |
QVC-Italy | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Balance as of December 31, 2013 | 155 | 149 | 146 |
Goodwill, acquired | ' | ' | 0 |
Exchange rate fluctuations | -1 | 6 | 3 |
Balance as of June 30, 2014 | $154 | $155 | $149 |
Significant_Accounting_Policie4
Significant Accounting Policies Other Details (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Cash equivalents | ' | $342,000,000 | $424,000,000 | ' | ' |
Customer returns | ' | 2,036,000,000 | 1,965,000,000 | 1,900,000,000 | ' |
Advertising expense | ' | 89,000,000 | 91,000,000 | 81,000,000 | ' |
Impairment of intangible assets, finite-lived | 47,000,000 | ' | ' | ' | ' |
Notional amount of interest rate derivative instruments not designated as hedging instruments | ' | ' | ' | ' | $3,100,000,000 |
Software Development [Member] | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | '3 years | ' | ' | ' |
Accounts_Receivable_Accounts_R
Accounts Receivable (Accounts Receivable) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | QVC Easy-Pay plan | QVC Easy-Pay plan | Major credit card and other receivables | Major credit card and other receivables | SG&A | SG&A | SG&A | Minimum | Maximum | |||
QVC Easy-Pay plan | QVC Easy-Pay plan | |||||||||||
installment | installment | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of installments plan permits for customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Number of monthly installments billed after first installment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Finance income from company branded credit card issued by a financial institution | ' | ' | ' | ' | ' | ' | ' | $63 | $65 | $58 | ' | ' |
Accounts Receivable, Net, Current [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable, gross | ' | 1,194 | 1,129 | 915 | 816 | 279 | 313 | ' | ' | ' | ' | ' |
Less allowance for doubtful accounts | -85 | -83 | -74 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable, net | $756 | $1,111 | $1,055 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts_Receivable_Activity_i
Accounts Receivable (Activity in the Allowance for Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' |
Balance beginning of year | $74 | $79 | $66 |
Additions charged to expense | 81 | 75 | 68 |
Deductions write-offs | -72 | -80 | -55 |
Balance end of year | $83 | $74 | $79 |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Millions, unless otherwise specified | QVC-Italy | QVC-Italy | Land | Land | Buildings and improvements | Buildings and improvements | Buildings and improvements | Buildings and improvements | Buildings and improvements | Furniture and other equipment | Furniture and other equipment | Furniture and other equipment | Furniture and other equipment | Broadcast equipment | Broadcast equipment | Broadcast equipment | Broadcast equipment | Computer equipment | Computer equipment | Computer equipment | Computer equipment | Transponders | Transponders | Transponders | Transponders | Projects in progress | Projects in progress | Leasehold improvements | |||
Forecast | Minimum | Maximum | QVC-Japan | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | QVC-U.K. | |||||||||||||||||||
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | ' | $2,025 | $1,998 | ' | ' | $87 | $97 | $954 | $877 | ' | ' | ' | $429 | $412 | ' | ' | $107 | $91 | ' | ' | $204 | $185 | ' | ' | $170 | $137 | ' | ' | $74 | $199 | ' |
Less accumulated depreciation | -989 | -919 | -867 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 1,076 | 1,106 | 1,131 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | '20 years | ' | ' | ' | '2 years | '8 years | ' | ' | '3 years | '5 years | ' | ' | '2 years | '4 years | ' | ' | '8 years | '15 years | ' | ' | ' |
Total project cost and improvements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 220 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 |
Property, plant and equipment additions | ' | ' | ' | ' | 22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits for property, plant and equipment additions | ' | ' | ' | $14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cable_and_Satellite_Television6
Cable and Satellite Television Distribution Rights, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cable and satellite television distribution rights | $5,573 | ' | $5,573 | ' | $5,544 | $5,503 | ' |
Less accumulated amortization | 2,330 | ' | 2,330 | ' | 2,208 | 1,994 | ' |
Amortization of intangible assets | 112 | 107 | 223 | 211 | 431 | 400 | 439 |
Percentage of net sales | ' | ' | ' | ' | 5.00% | ' | ' |
Cable and satellite television distribution rights | ' | ' | ' | ' | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cable and satellite television distribution rights | 2,334 | ' | 2,334 | ' | 2,324 | 2,304 | ' |
Less accumulated amortization | -1,794 | ' | -1,794 | ' | -1,700 | -1,540 | ' |
Cable and satellite television distribution rights, net | 540 | ' | 540 | ' | 624 | 764 | ' |
Acquired finite-lived intangible assets, weighted average useful life | ' | ' | ' | ' | '3 years 8 months 12 days | ' | ' |
Amortization of intangible assets | 46 | 44 | 93 | 86 | 177 | 163 | 167 |
Commission expense | ' | ' | ' | ' | $298 | $296 | $299 |
Cable_and_Satellite_Television7
Cable and Satellite Television Distribution Rights, Net (Future Amortization Expense) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
2014 | $146 | $280 |
2015 | 270 | 259 |
2016 | 235 | 223 |
2017 | 135 | 122 |
2018 | 9 | 9 |
Cable and satellite television distribution rights | ' | ' |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
2014 | ' | 176 |
2015 | 168 | 167 |
2016 | 162 | 161 |
2017 | 111 | 110 |
2018 | $6 | $5 |
Other_Intangible_Assets_Net_Ot1
Other Intangible Assets, Net (Other Intangible Assets) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gross cost | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased and internally developed software | $630 | ' | ' | $630 | ' | $615 | $575 | ' |
Affiliate and customer relationships | 2,451 | ' | ' | 2,451 | ' | 2,450 | 2,445 | ' |
Debt origination fees | ' | ' | ' | ' | ' | 51 | 54 | ' |
Trademarks (indefinite life) | 2,428 | ' | ' | 2,428 | ' | 2,428 | 2,429 | ' |
Other intangible assets (excluding goodwill), gross | 5,573 | ' | ' | 5,573 | ' | 5,544 | 5,503 | ' |
Accumulated amortization | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased and internally developed software | -423 | ' | ' | -423 | ' | -393 | -352 | ' |
Affiliate and customer relationships | -1,890 | ' | ' | -1,890 | ' | -1,802 | -1,624 | ' |
Debt origination fees | ' | ' | ' | ' | ' | -13 | -18 | ' |
Other intangible assets (excluding goodwill), accumulated amortization | -2,330 | ' | ' | -2,330 | ' | -2,208 | -1,994 | ' |
Amortization of other intangible assets | 66 | 63 | ' | 130 | 125 | 254 | 237 | 272 |
Impairment of intangible assets, finite-lived | ' | ' | $47 | ' | ' | ' | ' | ' |
Software and Software Development Costs [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining weighted average years | ' | ' | ' | ' | ' | '1 year 8 months 12 days | ' | ' |
Customer Lists [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining weighted average years | ' | ' | ' | ' | ' | '3 years 9 months 12 days | ' | ' |
Debt [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining weighted average years | ' | ' | ' | ' | ' | '8 years 9 months 12 days | ' | ' |
Other Intangible Assets [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining weighted average years | ' | ' | ' | ' | ' | '3 years 6 months 12 days | ' | ' |
Other_Intangible_Assets_Net_Fu1
Other Intangible Assets, Net (Future Amortization Expense) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
2014 | $146 | $280 |
2015 | 270 | 259 |
2016 | 235 | 223 |
2017 | 135 | 122 |
2018 | $9 | $9 |
Accrued_Liabilities_Details1
Accrued Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Accrued Liabilities [Abstract] | ' | ' | ' |
Accounts payable non-trade | $188 | $323 | $264 |
Income taxes | 98 | 126 | 154 |
Allowance for sales returns | 80 | 108 | 92 |
Accrued compensation and benefits | 96 | 98 | 100 |
Sales and other taxes | 53 | 79 | 62 |
Deferred revenue | 73 | 73 | 85 |
Liability for consigned goods sold | ' | 69 | 56 |
Accrued interest | 78 | 58 | 50 |
Other | 77 | 95 | 92 |
Accrued liabilities | $743 | $1,029 | $955 |
LongTerm_Debt_and_Interest_Rat2
Long-Term Debt and Interest Rate Swap Arrangements (Debt) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 23, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 25, 2009 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 23, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 02, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 18, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 18, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | 7.125% Senior Secured Notes due 2017 | 7.125% Senior Secured Notes due 2017 | 7.125% Senior Secured Notes due 2017 | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.375% Senior Secured Notes due 2020 | 7.375% Senior Secured Notes due 2020 | 7.375% Senior Secured Notes due 2020 | 7.375% Senior Secured Notes due 2020 | 5.125% Senior Secured Notes due 2022 | 5.125% Senior Secured Notes due 2022 | 5.125% Senior Secured Notes due 2022 | 5.125% Senior Secured Notes due 2022 | 4.375% Senior Secured Notes due 2023, net of original issue discount | 4.375% Senior Secured Notes due 2023, net of original issue discount | 4.375% Senior Secured Notes due 2023, net of original issue discount | 4.375% Senior Secured Notes due 2023, net of original issue discount | 5.95% Senior Secured Notes due 2043, net of original issue discount | 5.95% Senior Secured Notes due 2043, net of original issue discount | 5.95% Senior Secured Notes due 2043, net of original issue discount | 5.95% Senior Secured Notes due 2043, net of original issue discount | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Capital lease obligations | Capital lease obligations | Capital lease obligations | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt and Capital Lease Obligations | $3,948 | $3,813 | $3,477 | $0 | $500 | ' | $761 | $761 | $988 | ' | $500 | $500 | $500 | ' | $500 | $500 | $500 | ' | $750 | $750 | ' | $0 | $300 | $300 | ' | $0 | $65 | $922 | $903 | $73 | $80 | $86 |
Total debt | ' | ' | ' | ' | ' | 500 | ' | ' | ' | 1,000 | ' | ' | ' | 500 | ' | ' | ' | 500 | ' | ' | 750 | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | -11 | -13 | -12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | $3,937 | $3,800 | $3,465 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_and_Interest_Rat3
Long-Term Debt and Interest Rate Swap Arrangements (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Mar. 01, 2013 | Apr. 17, 2013 | Mar. 18, 2013 | Mar. 04, 2013 | Dec. 31, 2013 | Mar. 23, 2010 | Mar. 18, 2013 | Mar. 04, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 25, 2009 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 23, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Jul. 02, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 18, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 18, 2013 | |
7.125% Senior Secured Notes due 2017 | 7.125% Senior Secured Notes due 2017 | 7.125% Senior Secured Notes due 2017 | 7.125% Senior Secured Notes due 2017 | 7.125% Senior Secured Notes due 2017 | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.5% Senior Secured Notes due 2019, net of original issue discount | 7.375% Senior Secured Notes due 2020 | 7.375% Senior Secured Notes due 2020 | 7.375% Senior Secured Notes due 2020 | 5.125% Senior Secured Notes due 2022 | 5.125% Senior Secured Notes due 2022 | 5.125% Senior Secured Notes due 2022 | 4.375% Senior Secured Notes due 2023, net of original issue discount | 4.375% Senior Secured Notes due 2023, net of original issue discount | 4.375% Senior Secured Notes due 2023, net of original issue discount | 5.95% Senior Secured Notes due 2043, net of original issue discount | 5.95% Senior Secured Notes due 2043, net of original issue discount | 5.95% Senior Secured Notes due 2043, net of original issue discount | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of tender offer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | ' | ' | $250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument interest rate stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.13% | 7.13% | 7.13% | ' | 7.50% | 7.50% | 7.50% | 7.50% | 7.38% | 7.38% | 7.38% | 5.13% | 5.13% | 5.13% | 4.38% | 4.38% | 4.38% | 5.95% | 5.95% | 5.95% |
Total debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | 1,000,000,000 | ' | ' | 500,000,000 | ' | ' | 500,000,000 | ' | ' | 750,000,000 | ' | ' | 300,000,000 |
Extinguishment of debt amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 376,000,000 | 124,000,000 | ' | ' | ' | 231,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase price of individual bonds including premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,035.63 | 1,039.40 | ' | ' | ' | 1,120 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of individual bonds repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | 1,000 | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance price percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.28% | ' | ' | ' | ' | ' | ' | ' | ' | 99.97% | ' | ' | 99.97% |
Line of credit facility maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility standby letter of credit | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility uncommitted loan | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument lower range of basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument higher range of basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility remaining borrowing capacity | 1,900,000,000 | ' | 1,900,000,000 | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility interest rate at period end | 1.90% | ' | 1.90% | ' | 1.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of interest rate derivative instruments not designated as hedging instruments | ' | ' | ' | ' | ' | ' | ' | 3,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt | 0 | -16,000,000 | 0 | -57,000,000 | -57,000,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt weighted average interest rate | 5.50% | ' | 5.50% | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | ' | ' | ' | ' | $26,000,000 | $30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_and_Transponder_Service5
Leases and Transponder Service Agreements (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Capital transponders | ' | ' | ' | ' | ' | ' | ' |
2014 | $7 | ' | $7 | ' | $15 | ' | ' |
2015 | 11 | ' | 11 | ' | 11 | ' | ' |
2016 | 11 | ' | 11 | ' | 11 | ' | ' |
2017 | 11 | ' | 11 | ' | 11 | ' | ' |
2018 | 12 | ' | 12 | ' | 12 | ' | ' |
Thereafter | 28 | ' | 28 | ' | 28 | ' | ' |
Total | 80 | ' | 80 | ' | 88 | ' | ' |
Operating leases | ' | ' | ' | ' | ' | ' | ' |
2014 | 10 | ' | 10 | ' | 16 | ' | ' |
2015 | 15 | ' | 15 | ' | 14 | ' | ' |
2016 | 13 | ' | 13 | ' | 12 | ' | ' |
2017 | 10 | ' | 10 | ' | 10 | ' | ' |
2018 | 11 | ' | 11 | ' | 10 | ' | ' |
Thereafter | 101 | ' | 101 | ' | 96 | ' | ' |
Total | 160 | ' | 160 | ' | 158 | ' | ' |
Capital transponder monthly lease expense | 1 | ' | 1 | ' | 1 | ' | ' |
Capital leases income statement amortization expense | 3 | 3 | 6 | 6 | 12 | 11 | 14 |
Imputed interest on capital lease | 7 | ' | 7 | ' | 9 | ' | ' |
Operating leases rent expense net | $7 | $6 | $14 | $14 | $28 | $31 | $24 |
QVC-U.K. | ' | ' | ' | ' | ' | ' | ' |
Operating leased assets | ' | ' | ' | ' | ' | ' | ' |
Operating lease, term | ' | ' | ' | ' | ' | '21 years | ' |
Stock_Options_and_Other_ShareB2
Stock Options and Other Share-Based Awards (Stock Options Activity) (Details) (Liberty Incentive Plan, USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
LINTA | ' | ' |
Options | ' | ' |
Outstanding at beginning of the year (in shares) | 14,741,992 | ' |
Granted (in shares) | 4,187,768 | ' |
Exercised (in shares) | -2,776,282 | ' |
Forfeited (in shares) | -515,339 | ' |
Outstanding at end of the year (in shares) | 15,638,139 | 14,741,992 |
Weighted average exercise price | ' | ' |
Outstanding at beginning of the year ( in dollars per share) | $14.53 | ' |
Granted (in dollars per share) | $21.08 | ' |
Exercised (in dollars per share) | $10.19 | ' |
Forfeited (in dollars per share) | $15.87 | ' |
Outstanding at ending of the year ( in dollars per share) | $17.01 | $14.53 |
Additional Stock Option Disclosures | ' | ' |
Aggregate intrinsic value (000s) | $192,975 | $75,897 |
Weighted average remaining life (years) | '4 years 4 months 24 days | '4 years 7 months 6 days |
Exercisable at December 31, 2013 | ' | ' |
Options (in shares) | 5,932,895 | ' |
Weighted average exercise price (in dollars per share) | $13.44 | ' |
Aggregate intrinsic value (000s) | 94,400 | ' |
Weighted average remaining life (years) | '3 years 2 months 12 days | ' |
LVNTA | ' | ' |
Options | ' | ' |
Outstanding at beginning of the year (in shares) | 220,606 | ' |
Granted (in shares) | 0 | ' |
Exercised (in shares) | 0 | ' |
Forfeited (in shares) | 0 | ' |
Outstanding at end of the year (in shares) | 220,606 | 220,606 |
Weighted average exercise price | ' | ' |
Outstanding at beginning of the year ( in dollars per share) | $58.80 | ' |
Granted (in dollars per share) | $0 | ' |
Exercised (in dollars per share) | $0 | ' |
Forfeited (in dollars per share) | $0 | ' |
Outstanding at ending of the year ( in dollars per share) | $58.80 | $58.80 |
Additional Stock Option Disclosures | ' | ' |
Aggregate intrinsic value (000s) | 14,072 | 1,977 |
Weighted average remaining life (years) | '3 years 7 months 6 days | '4 years 7 months 6 days |
Exercisable at December 31, 2013 | ' | ' |
Options (in shares) | 71,554 | ' |
Weighted average exercise price (in dollars per share) | $58.80 | ' |
Aggregate intrinsic value (000s) | $4,564 | ' |
Weighted average remaining life (years) | '2 years 7 months 6 days | ' |
Stock_Options_and_Other_ShareB3
Stock Options and Other Share-Based Awards (Stock Options Valuations Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
LINTA | Minimum | ' | ' | ' |
Black Scholes option pricing model valuation assumptions | ' | ' | ' |
Risk free interest rate | ' | ' | 1.20% |
LINTA | Maximum | ' | ' | ' |
Black Scholes option pricing model valuation assumptions | ' | ' | ' |
Risk free interest rate | ' | ' | 2.50% |
Liberty Incentive Plan | LINTA | Stock options | ' | ' | ' |
Black Scholes option pricing model valuation assumptions | ' | ' | ' |
Weighted average expected volatility | 38.26% | 41.90% | 44.80% |
Expected term (years) | '6 years 2 months 12 days | '5 years 2 months 12 days | '5 years 10 months 24 days |
Risk free interest rate | 1.10% | 0.80% | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Liberty Incentive Plan | LVNTA | Stock options | ' | ' | ' |
Black Scholes option pricing model valuation assumptions | ' | ' | ' |
Weighted average expected volatility | ' | 49.90% | ' |
Expected term (years) | ' | '4 years 10 months 24 days | ' |
Risk free interest rate | ' | 0.58% | ' |
Expected dividend yield | ' | 0.00% | ' |
Stock_Options_and_Other_ShareB4
Stock Options and Other Share-Based Awards (Restricted Stock Activity) (Details) (Liberty Incentive Plan, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
LINTA | ' |
Restricted Shares | ' |
Outstanding at beginning of the year (in shares) | 1,454,148 |
Granted (in shares) | 450,140 |
Lapsed (in shares) | -608,490 |
Forfeited (in shares) | -81,336 |
Outstanding at end of the year (in shares) | 1,214,462 |
Weighted average grant date fair value | ' |
Outstanding at beginning of the year (in dollars per share) | $12.75 |
Granted (in dollars per share) | $21.44 |
Lapsed (in dollars per share) | $9.81 |
Forfeited (in dollars per share) | $16.25 |
Outstanding at end of the year (in dollars per share) | $18.01 |
LVNTA | ' |
Restricted Shares | ' |
Outstanding at beginning of the year (in shares) | 65,542 |
Granted (in shares) | 0 |
Lapsed (in shares) | -30,007 |
Forfeited (in shares) | -3,456 |
Outstanding at end of the year (in shares) | 32,079 |
Weighted average grant date fair value | ' |
Outstanding at beginning of the year (in dollars per share) | $31.75 |
Granted (in dollars per share) | $0 |
Lapsed (in dollars per share) | $23.64 |
Forfeited (in dollars per share) | $37.84 |
Outstanding at end of the year (in dollars per share) | $38.68 |
Stock_Options_and_Other_ShareB5
Stock Options and Other Share-Based Awards (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | Liberty Incentive Plan | ||||||||
Stock options | Stock options | Stock options | Restricted stock | Restricted stock | Restricted stock | LINTA | LINTA | LINTA | LINTA | LINTA | LINTA | LINTA | LINTA | LINTA | LINTA | LINTA | LVNTA | LVNTA | LVNTA | LVNTA | LVNTA | LVNTA | ||||||||||||
tranche | tracking-stock | Stock options | Stock options | Stock options | Restricted stock | Restricted stock | Restricted stock | Option Exchange | Stock options | Stock options | Restricted stock | Restricted stock | Option Exchange | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of tracking stocks after the split | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tracking stock conversion ratio, subsidiary to parent (for each subsidiary share issued) | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period in equal semi-annual tranches | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised during period | ' | ' | ' | ' | ' | ' | ' | ' | $37 | $97 | $20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value of options granted during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.16 | $6.66 | $7.32 | ' | ' | ' | ' | ' | ' | $6.94 | $15.22 | ' | ' | ' | ' | $25.69 |
Forfeiture rate assumed in stock option valuations (annualized) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 10 | 9 | 18 | 19 | 38 | 34 | 22 | ' | ' | ' | ' | 31 | 29 | 18 | 7 | 5 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to options | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, period for recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 9 months 18 days | '4 years | '4 years 1 month 6 days | '1 year 7 months 6 days | '2 years 6 months | '2 years 1 month 6 days | ' | ' | '4 years 6 months | '5 years 7 months 6 days | '1 year 9 months 18 days | '2 years 3 months 18 days | ' |
Unrecognized compensation cost related to restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' | ' | ' | ' | ' |
U.S. federal | ' | ' | ' | ' | $361 | $369 | $313 |
State and local | ' | ' | ' | ' | 22 | 23 | 28 |
Foreign jurisdiction | ' | ' | ' | ' | 78 | 136 | 117 |
Total | ' | ' | ' | ' | 461 | 528 | 458 |
Deferred: | ' | ' | ' | ' | ' | ' | ' |
U.S. federal | ' | ' | ' | ' | -107 | -121 | -97 |
State and local | ' | ' | ' | ' | -7 | -7 | -15 |
Foreign jurisdiction | ' | ' | ' | ' | 6 | -6 | -4 |
Total | ' | ' | -108 | -52 | -108 | -134 | -116 |
Total income tax expense | $83 | $81 | $157 | $143 | $353 | $394 | $342 |
Income_Taxes_Pretax_Income_Dom
Income Taxes (Pre-tax Income, Domestic and Foreign) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' |
U.S. pre-tax income | $824 | $865 | $785 |
Consolidated pre-tax income | 986 | 1,081 | 954 |
QVC-Japan | ' | ' | ' |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' |
Foreign pre-tax income | 181 | 253 | 199 |
QVC-Germany | ' | ' | ' |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' |
Foreign pre-tax income | 18 | 29 | 32 |
QVC-U.K. | ' | ' | ' |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' |
Foreign pre-tax income | 1 | -17 | -2 |
QVC-Italy | ' | ' | ' |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' |
Foreign pre-tax income | ($38) | ($49) | ($60) |
Income_Taxes_Effective_Income_
Income Taxes ( Effective Income Tax Rate Reconciliation) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' | ' | ' |
Provision at statutory rate | ' | 35.00% | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | ' | ' | 0.70% | 1.00% | 0.90% |
Foreign taxes | ' | ' | 0.60% | 1.30% | 1.30% |
Foreign earnings repatriation | ' | ' | -0.40% | -1.10% | -1.10% |
Permanent differences | ' | ' | 0.00% | 0.10% | 0.00% |
Other, net | ' | ' | -0.10% | 0.10% | -0.30% |
Total income tax expense | 37.20% | 37.50% | 35.80% | 36.40% | 35.80% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts | $32 | $29 |
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 | 36 | 39 |
Allowance for sales returns | 39 | 33 |
Deferred compensation | 36 | 27 |
Unrecognized federal and state tax benefits | 29 | 31 |
Accrued liabilities | 25 | 29 |
Other | 36 | 42 |
Subtotal | 233 | 230 |
Valuation allowance | -1 | -1 |
Total deferred tax assets | 232 | 229 |
Deferred tax liabilities: | ' | ' |
Depreciation and amortization | -1,349 | -1,455 |
Cumulative translation of foreign currencies | -47 | -33 |
Total deferred tax liabilities | -1,396 | -1,488 |
Net deferred tax liability | ($1,164) | ($1,259) |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' |
Balance at January 1, 2013 | $95 |
Decreases related to prior year tax positions | -11 |
Increases related to current year tax positions | 12 |
Settlements | -7 |
Balance at December 31, 2013 | $89 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Cash dividends paid to parent company for taxes | $385 | $338 | $358 |
Unrecognized tax benefits that would impact effective tax rate net | 58 | ' | ' |
Unrecognized tax benefits, federal tax benefits portion | 31 | ' | ' |
Unrecognized tax benefits, net decreases expected during 2014 | 24 | ' | ' |
United States | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income tax benefit recorded on undistributed foreign earnings | 3 | 12 | 10 |
Liberty | Tax agreement | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Cash dividends paid to parent company for taxes | 45 | 47 | 10 |
Current tax payments due to related parties | $78 | $70 | ' |
Business_Acquisitions_and_Inve1
Business Acquisitions and Investments in Affiliates (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 |
CNR Home Shopping Co., Ltd. | CNR Home Shopping Co., Ltd. | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity method investment, ownership percentage | ' | 49.00% | 49.00% |
Business acquisition, cost of acquired entity, cash paid | $95 | ' | ' |
Assets_and_Liabilities_Measure5
Assets and Liabilities Measured at Fair Value (Details) (Recurring, USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash equivalents | $463 | $342 | $424 |
Interest rate swap arrangements (note 6) | ' | ' | 1 |
Current liabilities: | ' | ' | ' |
Interest rate swap arrangements (note 6) | ' | ' | 13 |
Long-term liabilities: | ' | ' | ' |
Debt (note 6) | 4,071 | 3,783 | 3,626 |
Level 1 | ' | ' | ' |
Current assets: | ' | ' | ' |
Cash equivalents | 463 | 342 | 424 |
Level 2 | ' | ' | ' |
Current assets: | ' | ' | ' |
Interest rate swap arrangements (note 6) | ' | ' | 1 |
Current liabilities: | ' | ' | ' |
Interest rate swap arrangements (note 6) | ' | ' | 13 |
Long-term liabilities: | ' | ' | ' |
Debt (note 6) | $4,071 | $3,783 | $3,626 |
Information_about_QVCs_Operati9
Information about QVC's Operating Segments (Revenue and Adjusted OIBDA by Segment) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $2,014 | $1,961 | $4,000 | $3,935 | $8,623 | $8,516 | $8,268 |
Adjusted OIBDA | 439 | 434 | 851 | 838 | 1,841 | 1,828 | 1,733 |
QVC-U.S. | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 1,352 | 1,312 | 2,657 | 2,609 | 5,844 | 5,585 | 5,412 |
Adjusted OIBDA | 325 | 320 | 626 | 611 | 1,352 | 1,292 | 1,225 |
QVC-Japan | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 223 | 260 | 457 | 516 | 1,024 | 1,247 | 1,127 |
Adjusted OIBDA | 43 | 57 | 90 | 111 | 212 | 279 | 241 |
QVC-Germany | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 227 | 207 | 477 | 457 | 971 | 956 | 1,068 |
Adjusted OIBDA | 40 | 35 | 79 | 78 | 173 | 179 | 199 |
QVC-U.K. | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 178 | 153 | 343 | 293 | 657 | 641 | 626 |
Adjusted OIBDA | 33 | 26 | 60 | 45 | 118 | 104 | 111 |
QVC-Italy | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 34 | 29 | 66 | 60 | 127 | 87 | 35 |
Adjusted OIBDA | ($2) | ($4) | ($4) | ($7) | ($14) | ($26) | ($43) |
Recovered_Sheet1
Information about QVC's Operating Segments (Depreciation/Amortization by Segment) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | $33 | $33 | $66 | $63 | $127 | $126 | $135 |
Amortization of intangible assets | 112 | 107 | 223 | 211 | 431 | 400 | 439 |
QVC-U.S. | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 14 | 14 | 27 | 27 | 55 | 51 | 52 |
Amortization of intangible assets | 99 | 91 | 192 | 179 | 362 | 338 | 376 |
QVC-Japan | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 4 | 5 | 9 | 8 | 23 | 16 | 29 |
Amortization of intangible assets | 2 | 2 | 4 | 4 | 9 | 10 | 12 |
QVC-Germany | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 8 | 8 | 16 | 16 | 30 | 31 | 33 |
Amortization of intangible assets | 8 | 9 | 19 | 18 | 38 | 33 | 36 |
QVC-U.K. | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 4 | 5 | 8 | 9 | 12 | 21 | 13 |
Amortization of intangible assets | 3 | 3 | 7 | 6 | 14 | 12 | 11 |
QVC-Italy | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 3 | 1 | 6 | 3 | 7 | 7 | 8 |
Amortization of intangible assets | $0 | $2 | $1 | $4 | $8 | $7 | $4 |
Recovered_Sheet2
Information about QVC's Operating Segments (Total Assets and CAPEX by Segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | $13,056 | $13,438 | $12,667 |
Capital expenditures | 211 | 246 | ' |
QVC-U.S. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 10,322 | 10,541 | 9,933 |
Capital expenditures | 123 | 88 | ' |
QVC-Japan | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 732 | 969 | 732 |
Capital expenditures | 16 | 105 | ' |
QVC-Germany | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 1,109 | 1,064 | 1,103 |
Capital expenditures | 28 | 25 | ' |
QVC-U.K. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 613 | 619 | 628 |
Capital expenditures | 16 | 22 | ' |
QVC-Italy | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 280 | 245 | 271 |
Capital expenditures | $28 | $6 | ' |
Recovered_Sheet3
Information about QVC's Operating Segments (Long-lived Assets by Segment) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | $1,076 | $1,106 | $1,131 |
QVC-U.S. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 436 | 448 | 429 |
QVC-Japan | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 218 | 220 | 280 |
QVC-Germany | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 225 | 244 | 247 |
QVC-U.K. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 129 | 129 | 128 |
QVC-Italy | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | $68 | $65 | $47 |
Recovered_Sheet4
Information about QVC's Operating Segments (Reconciliation of Adjusted OIBDA to Income before Income Taxes) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Adjusted OIBDA | $439 | $434 | $851 | $838 | $1,841 | $1,828 | $1,733 |
Stock based compensation | -10 | -9 | -18 | -19 | -38 | -34 | -22 |
Depreciation and amortization | -145 | -140 | -289 | -274 | -558 | -526 | -574 |
Equity in losses of investee | -2 | -2 | -3 | -1 | -4 | -4 | -2 |
Gains on financial instruments | 0 | 3 | 0 | 15 | 15 | 48 | 50 |
Interest expense, net | -60 | -50 | -122 | -113 | -214 | -233 | -229 |
Foreign currency gain (loss) | 1 | 0 | 0 | -1 | 1 | 2 | -2 |
Loss on extinguishment of debt | 0 | -16 | 0 | -57 | -57 | 0 | 0 |
Income before income taxes | $223 | $220 | $419 | $388 | $986 | $1,081 | $954 |
Other_Comprehensive_Income_Acc1
Other Comprehensive Income (Accumulated Other Comprehensive Income) (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Foreign currency translation adjustments | ' | ' | ' | ' | ' |
Beginning balance | $139 | $186 | $186 | $194 | $209 |
Other comprehensive loss attributable to QVC, Inc. shareholder | 15 | -88 | -47 | -8 | -15 |
Ending balance | ' | ' | 139 | 186 | 194 |
AOCI | ' | ' | ' | ' | ' |
Beginning balance | 139 | 186 | 186 | 194 | 209 |
Other comprehensive loss attributable to QVC, Inc. shareholder | ' | ' | -47 | -8 | -15 |
Ending balance | $154 | $98 | $139 | $186 | $194 |
Other_Comprehensive_Income_Com1
Other Comprehensive Income (Component of Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Foreign currency transaction and translation gain (loss) before tax | $2 | ($13) | $21 | ($129) | ($64) | ($48) | ($20) |
Tax (expense) benefit from foreign currency translation gain (loss) | 0 | -3 | -3 | 22 | -8 | 21 | 10 |
Foreign currency translation adjustments, net-of-tax | $2 | ($16) | $18 | ($107) | ($72) | ($27) | ($10) |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Cash contributions to defined contribution plans | $19 | $16 | $16 |
Subsequent_Events_Details1
Subsequent Events (Details) (Liberty, USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Liberty | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Subsequent event dividend to parent | $1,400 | $108 |
GuarantorNonGuarantor_Subsidia9
Guarantor/Non-Guarantor Subsidiary Financial Information (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Guaranor Non-guarantor Subsidiary Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Subsidiary Guarantors, Ownership Percentage | 100.00% | ' | 100.00% | ' | 100.00% | ' | ' |
Intercompany accounts payable (receivable) | $0 | ' | $0 | ' | $0 | $0 | ' |
QVC, Inc. shareholder's equity | 5,996 | ' | 5,996 | ' | 6,222 | 6,690 | ' |
Net revenue | 2,014 | 1,961 | 4,000 | 3,935 | 8,623 | 8,516 | 8,268 |
Cost of goods sold | 1,250 | 1,227 | 2,506 | 2,479 | 5,465 | 5,419 | 5,278 |
Operating | 180 | 171 | 358 | 344 | 740 | 715 | 744 |
Net Income (Loss) Attributable to Noncontrolling Interest | 10 | 13 | 19 | 25 | 45 | 63 | 52 |
Net cash provided by operating activities | ' | ' | 549 | 442 | 973 | 1,206 | 818 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | -65 | -100 | -270 | -344 | -256 |
Net Cash Provided by (Used in) Financing Activities | ' | ' | -387 | -437 | -763 | -862 | -627 |
Parent Company | ' | ' | ' | ' | ' | ' | ' |
Guaranor Non-guarantor Subsidiary Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Intercompany accounts payable (receivable) | 1,084 | ' | 1,084 | ' | 1,019 | 829 | ' |
QVC, Inc. shareholder's equity | 5,996 | ' | 5,996 | ' | 6,222 | 6,690 | ' |
Net revenue | 1,368 | 1,326 | 2,692 | 2,640 | 5,914 | 5,653 | 5,485 |
Cost of goods sold | 850 | 836 | 1,692 | 1,679 | 3,804 | 3,644 | 3,507 |
Operating | 42 | 38 | 82 | 75 | 168 | 140 | 166 |
Net Income (Loss) Attributable to Noncontrolling Interest | 10 | 13 | 19 | 25 | 45 | 63 | 52 |
Net cash provided by operating activities | ' | ' | 217 | 275 | 379 | 462 | 225 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | 40 | 229 | 263 | 366 | 271 |
Net Cash Provided by (Used in) Financing Activities | ' | ' | -317 | -571 | -639 | -756 | -537 |
Parent Company | Adjustment | ' | ' | ' | ' | ' | ' | ' |
Guaranor Non-guarantor Subsidiary Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Intercompany accounts payable (receivable) | ' | ' | ' | ' | ' | 1,055 | ' |
Net revenue | ' | 58 | ' | 112 | ' | 231 | 199 |
Cost of goods sold | ' | ' | ' | 11 | ' | 69 | 73 |
Operating | ' | 9 | ' | 17 | ' | 33 | 25 |
Net Income (Loss) Attributable to Noncontrolling Interest | ' | ' | ' | ' | ' | 63 | 52 |
Net cash provided by operating activities | ' | ' | ' | 83 | ' | 156 | 103 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | ' | 34 | ' | 101 | 37 |
Net Cash Provided by (Used in) Financing Activities | ' | ' | ' | 117 | ' | 55 | 140 |
Guarantor Subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Guaranor Non-guarantor Subsidiary Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Intercompany accounts payable (receivable) | -814 | ' | -814 | ' | -879 | -816 | ' |
QVC, Inc. shareholder's equity | 4,146 | ' | 4,146 | ' | 4,248 | 4,466 | ' |
Net revenue | 187 | 182 | 364 | 365 | 841 | 819 | 790 |
Cost of goods sold | 23 | 23 | 48 | 49 | 107 | 116 | 120 |
Operating | 49 | 48 | 95 | 93 | 214 | 206 | 201 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net cash provided by operating activities | ' | ' | 172 | 115 | 389 | 412 | 380 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | 18 | 124 | 213 | 259 | 180 |
Net Cash Provided by (Used in) Financing Activities | ' | ' | -161 | -240 | -634 | -729 | -497 |
Guarantor Subsidiaries | Adjustment | ' | ' | ' | ' | ' | ' | ' |
Guaranor Non-guarantor Subsidiary Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
QVC, Inc. shareholder's equity | ' | ' | ' | ' | ' | 405 | ' |
Net Cash Provided by (Used in) Investing Activities | ' | ' | ' | ' | ' | 49 | ' |
Net Cash Provided by (Used in) Financing Activities | ' | ' | ' | ' | ' | 48 | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Guaranor Non-guarantor Subsidiary Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Intercompany accounts payable (receivable) | -270 | ' | -270 | ' | -140 | -13 | ' |
QVC, Inc. shareholder's equity | 2,348 | ' | 2,348 | ' | 2,274 | 2,216 | ' |
Net revenue | 692 | 681 | 1,399 | 1,389 | 2,914 | 3,078 | 2,988 |
Cost of goods sold | 432 | 427 | 878 | 871 | 1,831 | 1,941 | 1,906 |
Operating | 89 | 85 | 181 | 176 | 358 | 369 | 377 |
Net Income (Loss) Attributable to Noncontrolling Interest | 10 | 13 | 19 | 25 | 45 | 63 | 52 |
Net cash provided by operating activities | ' | ' | 160 | 52 | 205 | 332 | 213 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | 38 | -46 | -101 | -261 | -169 |
Net Cash Provided by (Used in) Financing Activities | ' | ' | -70 | -33 | -135 | -85 | -131 |
Non-Guarantor Subsidiaries | Adjustment | ' | ' | ' | ' | ' | ' | ' |
Guaranor Non-guarantor Subsidiary Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Intercompany accounts payable (receivable) | ' | ' | ' | ' | ' | 650 | ' |
QVC, Inc. shareholder's equity | ' | ' | ' | ' | ' | 650 | ' |
Net Cash Provided by (Used in) Financing Activities | ' | ' | ' | $83 | ' | $152 | $106 |
Recovered_Sheet5
Guarantor/Non-Guarantor Subsidiary Financial Information (Effect of the Adjustment on Equity) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | |||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | $6,112 | $6,341 | $6,834 | $8,019 | $7,654 |
As previously reported | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | 8,019 | ' |
Adjustment | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | 0 | ' |
Parent company | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | 5,996 | 6,222 | 6,690 | 7,890 | ' |
Parent company | As previously reported | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | 7,890 | ' |
Parent company | Adjustment | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | 0 | ' |
Guarantor subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | 4,146 | 4,248 | 4,466 | 3,915 | ' |
Guarantor subsidiaries | As previously reported | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | 3,465 | ' |
Guarantor subsidiaries | Adjustment | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | 450 | ' |
Non-guarantor subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | 2,464 | 2,393 | 2,360 | 2,181 | ' |
Non-guarantor subsidiaries | As previously reported | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | 1,716 | ' |
Non-guarantor subsidiaries | Adjustment | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | 465 | ' |
Eliminations | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | -6,494 | -6,522 | -6,682 | -5,967 | ' |
Eliminations | As previously reported | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | -5,052 | ' |
Eliminations | Adjustment | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | ($915) | ' |
Recovered_Sheet6
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Financial Position) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||||
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $548 | $457 | $416 | $540 | $560 | $621 |
Restricted cash | 14 | 14 | ' | 15 | ' | ' |
Accounts receivable, less allowance for doubtful accounts of $85 million at June 30, 2014 and $83 million at December 31, 2013 | 756 | 1,111 | ' | 1,055 | ' | ' |
Inventories | 989 | 931 | ' | 909 | ' | ' |
Deferred income taxes | 165 | 162 | ' | 151 | ' | ' |
Prepaid expenses | 57 | 47 | ' | 53 | ' | ' |
Total current assets | 2,529 | 2,722 | ' | 2,723 | ' | ' |
Property and equipment, net of accumulated depreciation of $989 million at June 30, 2014 and $919 million at December 31, 2013 | 1,076 | 1,106 | ' | 1,131 | ' | ' |
Cable and satellite television distribution rights, net | 540 | 624 | ' | 764 | ' | ' |
Goodwill | 5,210 | 5,197 | ' | 5,234 | 5,239 | ' |
Other intangible assets, net | 3,243 | 3,336 | ' | 3,509 | ' | ' |
Other noncurrent assets | 69 | 71 | ' | 77 | ' | ' |
Investments in subsidiaries | 0 | 0 | ' | 0 | ' | ' |
Total assets | 12,667 | 13,056 | ' | 13,438 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 11 | 13 | ' | 12 | ' | ' |
Accounts payable-trade | 470 | 425 | ' | 566 | ' | ' |
Accrued liabilities | 743 | 1,029 | ' | 955 | ' | ' |
Intercompany accounts payable (receivable) | 0 | 0 | ' | 0 | ' | ' |
Total current liabilities | 1,224 | 1,467 | ' | 1,533 | ' | ' |
Long-term portion of debt and capital lease obligations | 3,937 | 3,800 | ' | 3,465 | ' | ' |
Deferred compensation | 14 | 14 | ' | 12 | ' | ' |
Deferred income taxes | 1,223 | 1,326 | ' | 1,410 | ' | ' |
Other long-term liabilities | 157 | 108 | ' | 184 | ' | ' |
Liabilities | 6,555 | 6,715 | ' | 6,604 | ' | ' |
QVC, Inc. shareholder's equity: | ' | ' | ' | ' | ' | ' |
QVC, Inc. shareholder's equity | 5,996 | 6,222 | ' | 6,690 | ' | ' |
Noncontrolling interest | 116 | 119 | ' | 144 | ' | ' |
Total equity | 6,112 | 6,341 | ' | 6,834 | 8,019 | 7,654 |
Total liabilities and equity | 12,667 | 13,056 | ' | 13,438 | ' | ' |
Parent company | ' | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 18 | 78 | 8 | 75 | 3 | 44 |
Restricted cash | 11 | 11 | ' | 13 | ' | ' |
Accounts receivable, less allowance for doubtful accounts of $85 million at June 30, 2014 and $83 million at December 31, 2013 | 490 | 816 | ' | 747 | ' | ' |
Inventories | 725 | 684 | ' | 691 | ' | ' |
Deferred income taxes | 147 | 146 | ' | 131 | ' | ' |
Prepaid expenses | 28 | 20 | ' | 19 | ' | ' |
Total current assets | 1,419 | 1,755 | ' | 1,676 | ' | ' |
Property and equipment, net of accumulated depreciation of $989 million at June 30, 2014 and $919 million at December 31, 2013 | 253 | 265 | ' | 247 | ' | ' |
Cable and satellite television distribution rights, net | 0 | 0 | ' | 0 | ' | ' |
Goodwill | 4,169 | 4,169 | ' | 4,169 | ' | ' |
Other intangible assets, net | 1,092 | 1,128 | ' | 1,280 | ' | ' |
Other noncurrent assets | 9 | 8 | ' | 14 | ' | ' |
Investments in subsidiaries | 4,893 | 4,894 | ' | 4,844 | ' | ' |
Total assets | 11,835 | 12,219 | ' | 12,230 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 2 | 2 | ' | 2 | ' | ' |
Accounts payable-trade | 275 | 266 | ' | 324 | ' | ' |
Accrued liabilities | 150 | 463 | ' | 402 | ' | ' |
Intercompany accounts payable (receivable) | 1,084 | 1,019 | ' | 829 | ' | ' |
Total current liabilities | 1,511 | 1,750 | ' | 1,557 | ' | ' |
Long-term portion of debt and capital lease obligations | 3,886 | 3,745 | ' | 3,404 | ' | ' |
Deferred compensation | 14 | 13 | ' | 11 | ' | ' |
Deferred income taxes | 319 | 399 | ' | 431 | ' | ' |
Other long-term liabilities | 109 | 90 | ' | 137 | ' | ' |
Liabilities | 5,839 | 5,997 | ' | 5,540 | ' | ' |
QVC, Inc. shareholder's equity: | ' | ' | ' | ' | ' | ' |
QVC, Inc. shareholder's equity | 5,996 | 6,222 | ' | 6,690 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | 0 | ' | ' |
Total equity | 5,996 | 6,222 | ' | 6,690 | 7,890 | ' |
Total liabilities and equity | 11,835 | 12,219 | ' | 12,230 | ' | ' |
Guarantor subsidiaries | ' | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 162 | 133 | 164 | 165 | 223 | 160 |
Restricted cash | 0 | 0 | ' | 0 | ' | ' |
Accounts receivable, less allowance for doubtful accounts of $85 million at June 30, 2014 and $83 million at December 31, 2013 | 0 | 0 | ' | 0 | ' | ' |
Inventories | 0 | 0 | ' | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | 0 | ' | ' |
Prepaid expenses | 0 | 0 | ' | 0 | ' | ' |
Total current assets | 162 | 133 | ' | 165 | ' | ' |
Property and equipment, net of accumulated depreciation of $989 million at June 30, 2014 and $919 million at December 31, 2013 | 66 | 67 | ' | 67 | ' | ' |
Cable and satellite television distribution rights, net | 441 | 510 | ' | 618 | ' | ' |
Goodwill | 0 | 0 | ' | 0 | ' | ' |
Other intangible assets, net | 2,049 | 2,050 | ' | 2,049 | ' | ' |
Other noncurrent assets | 0 | 0 | ' | 0 | ' | ' |
Investments in subsidiaries | 1,601 | 1,628 | ' | 1,838 | ' | ' |
Total assets | 4,319 | 4,388 | ' | 4,737 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 0 | 0 | ' | 0 | ' | ' |
Accounts payable-trade | 0 | 0 | ' | 0 | ' | ' |
Accrued liabilities | 86 | 96 | ' | 106 | ' | ' |
Intercompany accounts payable (receivable) | -814 | -879 | ' | -816 | ' | ' |
Total current liabilities | -728 | -783 | ' | -710 | ' | ' |
Long-term portion of debt and capital lease obligations | 0 | 0 | ' | 0 | ' | ' |
Deferred compensation | 0 | 0 | ' | 0 | ' | ' |
Deferred income taxes | 901 | 923 | ' | 964 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | 17 | ' | ' |
Liabilities | 173 | 140 | ' | 271 | ' | ' |
QVC, Inc. shareholder's equity: | ' | ' | ' | ' | ' | ' |
QVC, Inc. shareholder's equity | 4,146 | 4,248 | ' | 4,466 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | 0 | ' | ' |
Total equity | 4,146 | 4,248 | ' | 4,466 | 3,915 | ' |
Total liabilities and equity | 4,319 | 4,388 | ' | 4,737 | ' | ' |
Non-guarantor subsidiaries | ' | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 368 | 246 | 244 | 300 | 334 | 417 |
Restricted cash | 3 | 3 | ' | 2 | ' | ' |
Accounts receivable, less allowance for doubtful accounts of $85 million at June 30, 2014 and $83 million at December 31, 2013 | 266 | 295 | ' | 308 | ' | ' |
Inventories | 264 | 247 | ' | 218 | ' | ' |
Deferred income taxes | 18 | 16 | ' | 20 | ' | ' |
Prepaid expenses | 29 | 27 | ' | 34 | ' | ' |
Total current assets | 948 | 834 | ' | 882 | ' | ' |
Property and equipment, net of accumulated depreciation of $989 million at June 30, 2014 and $919 million at December 31, 2013 | 757 | 774 | ' | 817 | ' | ' |
Cable and satellite television distribution rights, net | 99 | 114 | ' | 146 | ' | ' |
Goodwill | 1,041 | 1,028 | ' | 1,065 | ' | ' |
Other intangible assets, net | 102 | 158 | ' | 180 | ' | ' |
Other noncurrent assets | 60 | 63 | ' | 63 | ' | ' |
Investments in subsidiaries | 0 | 0 | ' | 0 | ' | ' |
Total assets | 3,007 | 2,971 | ' | 3,153 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 9 | 11 | ' | 10 | ' | ' |
Accounts payable-trade | 195 | 159 | ' | 242 | ' | ' |
Accrued liabilities | 507 | 470 | ' | 447 | ' | ' |
Intercompany accounts payable (receivable) | -270 | -140 | ' | -13 | ' | ' |
Total current liabilities | 441 | 500 | ' | 686 | ' | ' |
Long-term portion of debt and capital lease obligations | 51 | 55 | ' | 61 | ' | ' |
Deferred compensation | 0 | 1 | ' | 1 | ' | ' |
Deferred income taxes | 3 | 4 | ' | 15 | ' | ' |
Other long-term liabilities | 48 | 18 | ' | 30 | ' | ' |
Liabilities | 543 | 578 | ' | 793 | ' | ' |
QVC, Inc. shareholder's equity: | ' | ' | ' | ' | ' | ' |
QVC, Inc. shareholder's equity | 2,348 | 2,274 | ' | 2,216 | ' | ' |
Noncontrolling interest | 116 | 119 | ' | 144 | ' | ' |
Total equity | 2,464 | 2,393 | ' | 2,360 | 2,181 | ' |
Total liabilities and equity | 3,007 | 2,971 | ' | 3,153 | ' | ' |
Eliminations | ' | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ' | 0 | ' | ' |
Accounts receivable, less allowance for doubtful accounts of $85 million at June 30, 2014 and $83 million at December 31, 2013 | 0 | 0 | ' | 0 | ' | ' |
Inventories | 0 | 0 | ' | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | 0 | ' | ' |
Prepaid expenses | 0 | 0 | ' | 0 | ' | ' |
Total current assets | 0 | 0 | ' | 0 | ' | ' |
Property and equipment, net of accumulated depreciation of $989 million at June 30, 2014 and $919 million at December 31, 2013 | 0 | 0 | ' | 0 | ' | ' |
Cable and satellite television distribution rights, net | 0 | 0 | ' | 0 | ' | ' |
Goodwill | 0 | 0 | ' | 0 | ' | ' |
Other intangible assets, net | 0 | 0 | ' | 0 | ' | ' |
Other noncurrent assets | 0 | 0 | ' | 0 | ' | ' |
Investments in subsidiaries | -6,494 | -6,522 | ' | -6,682 | ' | ' |
Total assets | -6,494 | -6,522 | ' | -6,682 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 0 | 0 | ' | 0 | ' | ' |
Accounts payable-trade | 0 | 0 | ' | 0 | ' | ' |
Accrued liabilities | 0 | 0 | ' | 0 | ' | ' |
Intercompany accounts payable (receivable) | 0 | 0 | ' | 0 | ' | ' |
Total current liabilities | 0 | 0 | ' | 0 | ' | ' |
Long-term portion of debt and capital lease obligations | 0 | 0 | ' | 0 | ' | ' |
Deferred compensation | 0 | 0 | ' | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | 0 | ' | ' |
Liabilities | 0 | 0 | ' | 0 | ' | ' |
QVC, Inc. shareholder's equity: | ' | ' | ' | ' | ' | ' |
QVC, Inc. shareholder's equity | -6,494 | -6,522 | ' | -6,682 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | 0 | ' | ' |
Total equity | -6,494 | -6,522 | ' | -6,682 | -5,967 | ' |
Total liabilities and equity | ($6,494) | ($6,522) | ' | ($6,682) | ' | ' |
Recovered_Sheet7
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Operations) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $2,014 | $1,961 | $4,000 | $3,935 | $8,623 | $8,516 | $8,268 |
Cost of goods sold | 1,250 | 1,227 | 2,506 | 2,479 | 5,465 | 5,419 | 5,278 |
Gross profit | 764 | 734 | 1,494 | 1,456 | 3,158 | 3,097 | 2,990 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 180 | 171 | 358 | 344 | 740 | 715 | 744 |
Selling, general and administrative, including stock-based compensation | 155 | 138 | 303 | 293 | 615 | 588 | 535 |
Depreciation | 33 | 33 | 66 | 63 | 127 | 126 | 135 |
Amortization of intangible assets | 112 | 107 | 223 | 211 | 431 | 400 | 439 |
Intercompany management expense (income) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operating expenses | 480 | 449 | 950 | 911 | 1,913 | 1,829 | 1,853 |
Operating income | 284 | 285 | 544 | 545 | 1,245 | 1,268 | 1,137 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | -2 | -2 | -3 | -1 | -4 | -4 | -2 |
Gains on financial instruments | 0 | 3 | 0 | 15 | 15 | 48 | 50 |
Interest expense, net | -60 | -50 | -122 | -113 | -214 | -233 | -229 |
Foreign currency gain (loss) | 1 | 0 | 0 | -1 | 1 | 2 | -2 |
Loss on extinguishment of debt | 0 | -16 | 0 | -57 | -57 | 0 | 0 |
Intercompany interest (expense) income | ' | ' | ' | ' | 0 | 0 | 0 |
Nonoperating income (expense) | -61 | -65 | -125 | -157 | -259 | -187 | -183 |
Income before income taxes | 223 | 220 | 419 | 388 | 986 | 1,081 | 954 |
Income tax expense | -83 | -81 | -157 | -143 | -353 | -394 | -342 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net income | 140 | 139 | 262 | 245 | 633 | 687 | 612 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 | -45 | -63 | -52 |
Net income attributable to QVC, Inc. stockholder | 130 | 126 | 243 | 220 | 588 | 624 | 560 |
Parent company | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 1,368 | 1,326 | 2,692 | 2,640 | 5,914 | 5,653 | 5,485 |
Cost of goods sold | 850 | 836 | 1,692 | 1,679 | 3,804 | 3,644 | 3,507 |
Gross profit | 518 | 490 | 1,000 | 961 | 2,110 | 2,009 | 1,978 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 42 | 38 | 82 | 75 | 168 | 140 | 166 |
Selling, general and administrative, including stock-based compensation | 243 | 227 | 466 | 463 | 1,028 | 1,002 | 947 |
Depreciation | 10 | 9 | 19 | 19 | 38 | 35 | 36 |
Amortization of intangible assets | 58 | 51 | 110 | 102 | 204 | 204 | 242 |
Intercompany management expense (income) | 20 | 15 | 40 | 32 | 50 | 60 | 89 |
Operating expenses | 373 | 340 | 717 | 691 | 1,488 | 1,441 | 1,480 |
Operating income | 145 | 150 | 283 | 270 | 622 | 568 | 498 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Gains on financial instruments | ' | 0 | ' | 12 | 12 | 48 | 50 |
Interest expense, net | -60 | -50 | -113 | -112 | -214 | -233 | -230 |
Foreign currency gain (loss) | -1 | -1 | -3 | -2 | -13 | -10 | -3 |
Loss on extinguishment of debt | ' | -16 | ' | -57 | -57 | ' | ' |
Intercompany interest (expense) income | ' | ' | ' | ' | -16 | -13 | -9 |
Nonoperating income (expense) | -66 | -71 | -126 | -166 | -288 | -208 | -192 |
Income before income taxes | 79 | 79 | 157 | 104 | 334 | 360 | 306 |
Income tax expense | -27 | -21 | -7 | -32 | -119 | -116 | -110 |
Equity in earnings of subsidiaries, net of tax | 88 | 81 | 112 | 173 | 418 | 443 | 416 |
Net income | 140 | 139 | 262 | 245 | 633 | 687 | 612 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 | -45 | -63 | -52 |
Net income attributable to QVC, Inc. stockholder | 130 | 126 | 243 | 220 | 588 | 624 | 560 |
Guarantor subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 187 | 182 | 364 | 365 | 841 | 819 | 790 |
Cost of goods sold | 23 | 23 | 48 | 49 | 107 | 116 | 120 |
Gross profit | 164 | 159 | 316 | 316 | 734 | 703 | 670 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 49 | 48 | 95 | 93 | 214 | 206 | 201 |
Selling, general and administrative, including stock-based compensation | 1 | 0 | -1 | 0 | 0 | 1 | 0 |
Depreciation | 1 | 2 | 3 | 3 | 6 | 4 | 4 |
Amortization of intangible assets | 38 | 36 | 77 | 70 | 146 | 130 | 133 |
Intercompany management expense (income) | -5 | -4 | -8 | -7 | 1 | -14 | -27 |
Operating expenses | 84 | 82 | 166 | 159 | 367 | 327 | 311 |
Operating income | 80 | 77 | 150 | 157 | 367 | 376 | 359 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Gains on financial instruments | ' | 0 | ' | 0 | 0 | 0 | 0 |
Interest expense, net | 0 | -1 | 0 | -1 | 0 | 0 | 0 |
Foreign currency gain (loss) | 0 | 0 | 0 | -1 | 0 | 4 | -2 |
Loss on extinguishment of debt | ' | 0 | ' | 0 | 0 | ' | ' |
Intercompany interest (expense) income | ' | ' | ' | ' | 51 | 51 | 53 |
Nonoperating income (expense) | 13 | 11 | 26 | 23 | 51 | 55 | 51 |
Income before income taxes | 93 | 88 | 176 | 180 | 418 | 431 | 410 |
Income tax expense | -28 | -32 | -52 | -60 | -132 | -141 | -124 |
Equity in earnings of subsidiaries, net of tax | 29 | 11 | -19 | 26 | 67 | 93 | 70 |
Net income | 94 | 67 | 105 | 146 | 353 | 383 | 356 |
Less net income attributable to the noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net income attributable to QVC, Inc. stockholder | 94 | 67 | 105 | 146 | 353 | 383 | 356 |
Non-guarantor subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 692 | 681 | 1,399 | 1,389 | 2,914 | 3,078 | 2,988 |
Cost of goods sold | 432 | 427 | 878 | 871 | 1,831 | 1,941 | 1,906 |
Gross profit | 260 | 254 | 521 | 518 | 1,083 | 1,137 | 1,082 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 89 | 85 | 181 | 176 | 358 | 369 | 377 |
Selling, general and administrative, including stock-based compensation | 89 | 80 | 181 | 169 | 356 | 337 | 328 |
Depreciation | 22 | 22 | 44 | 41 | 83 | 87 | 95 |
Amortization of intangible assets | 16 | 20 | 36 | 39 | 81 | 66 | 64 |
Intercompany management expense (income) | -15 | -11 | -32 | -25 | -51 | -46 | -62 |
Operating expenses | 201 | 196 | 410 | 400 | 827 | 813 | 802 |
Operating income | 59 | 58 | 111 | 118 | 256 | 324 | 280 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | -2 | -2 | -3 | -1 | -4 | -4 | -2 |
Gains on financial instruments | ' | 3 | ' | 3 | 3 | 0 | 0 |
Interest expense, net | 0 | 1 | -9 | 0 | 0 | 0 | 1 |
Foreign currency gain (loss) | 2 | 1 | 3 | 2 | 14 | 8 | 3 |
Loss on extinguishment of debt | ' | 0 | ' | 0 | 0 | ' | ' |
Intercompany interest (expense) income | ' | ' | ' | ' | -35 | -38 | -44 |
Nonoperating income (expense) | 12 | -5 | -5 | -14 | -22 | -34 | -42 |
Income before income taxes | 71 | 53 | 106 | 104 | 234 | 290 | 238 |
Income tax expense | -28 | -28 | -98 | -51 | -102 | -137 | -108 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net income | 43 | 25 | 8 | 53 | 132 | 153 | 130 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 | -45 | -63 | -52 |
Net income attributable to QVC, Inc. stockholder | 33 | 12 | -11 | 28 | 87 | 90 | 78 |
Eliminations | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net revenue | -233 | -228 | -455 | -459 | -1,046 | -1,034 | -995 |
Cost of goods sold | -55 | -59 | -112 | -120 | -277 | -282 | -255 |
Gross profit | -178 | -169 | -343 | -339 | -769 | -752 | -740 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Operating | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Selling, general and administrative, including stock-based compensation | -178 | -169 | -343 | -339 | -769 | -752 | -740 |
Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Intercompany management expense (income) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operating expenses | -178 | -169 | -343 | -339 | -769 | -752 | -740 |
Operating income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' |
Equity in losses of investee | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Gains on financial instruments | ' | 0 | ' | 0 | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Foreign currency gain (loss) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Loss on extinguishment of debt | ' | 0 | ' | 0 | 0 | ' | ' |
Intercompany interest (expense) income | ' | ' | ' | ' | 0 | 0 | 0 |
Nonoperating income (expense) | -20 | 0 | -20 | 0 | 0 | 0 | 0 |
Income before income taxes | -20 | 0 | -20 | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | -117 | -92 | -93 | -199 | -485 | -536 | -486 |
Net income | -137 | -92 | -113 | -199 | -485 | -536 | -486 |
Less net income attributable to the noncontrolling interest | 10 | 13 | 19 | 25 | 45 | 63 | 52 |
Net income attributable to QVC, Inc. stockholder | ($127) | ($79) | ($94) | ($174) | ($440) | ($473) | ($434) |
Recovered_Sheet8
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net income | $140 | $139 | $262 | $245 | $633 | $687 | $612 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 | -72 | -27 | -10 |
Total comprehensive income | 142 | 123 | 280 | 138 | 561 | 660 | 602 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 | -20 | -44 | -57 |
Comprehensive income attributable to QVC, Inc. shareholder | 132 | 116 | 258 | 132 | 541 | 616 | 545 |
Parent company | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net income | 140 | 139 | 262 | 245 | 633 | 687 | 612 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 | -72 | -27 | -10 |
Total comprehensive income | 142 | 123 | 280 | 138 | 561 | 660 | 602 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 | -20 | -44 | -57 |
Comprehensive income attributable to QVC, Inc. shareholder | 132 | 116 | 258 | 132 | 541 | 616 | 545 |
Guarantor subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net income | 94 | 67 | 105 | 146 | 353 | 383 | 356 |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total comprehensive income | 94 | 67 | 105 | 146 | 353 | 383 | 356 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Comprehensive income attributable to QVC, Inc. shareholder | 94 | 67 | 105 | 146 | 353 | 383 | 356 |
Non-guarantor subsidiaries | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net income | 43 | 25 | 8 | 53 | 132 | 153 | 130 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 | -72 | -27 | -10 |
Total comprehensive income | 45 | 9 | 26 | -54 | 60 | 126 | 120 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 | -20 | -44 | -57 |
Comprehensive income attributable to QVC, Inc. shareholder | 35 | 2 | 4 | -60 | 40 | 82 | 63 |
Eliminations | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net income | -137 | -92 | -113 | -199 | -485 | -536 | -486 |
Foreign currency translation adjustments | -2 | 16 | -18 | 107 | 72 | 27 | 10 |
Total comprehensive income | -139 | -76 | -131 | -92 | -413 | -509 | -476 |
Comprehensive income attributable to noncontrolling interest | 10 | 7 | 22 | 6 | 20 | 44 | 57 |
Comprehensive income attributable to QVC, Inc. shareholder | ($129) | ($69) | ($109) | ($86) | ($393) | ($465) | ($419) |
Recovered_Sheet9
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Cash Flow) (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' | ' | ' |
Net cash provided by operating activities | $549 | $442 | $973 | $1,206 | $818 |
Investing activities: | ' | ' | ' | ' | ' |
Capital expenditures, net | -57 | -75 | -211 | -246 | -259 |
Expenditures for cable and satellite television distribution rights, net | -8 | -26 | -58 | -2 | -2 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | ' | ' | 0 | -95 | 0 |
Decrease in restricted cash | ' | ' | 1 | 2 | 1 |
Changes in other noncurrent assets | 0 | 1 | -2 | -3 | 4 |
Intercompany investing activities | 0 | 0 | 0 | 0 | 0 |
Net cash used in investing activities | -65 | -100 | -270 | -344 | -256 |
Financing activities: | ' | ' | ' | ' | ' |
Principal payments of debt and capital lease obligations | -1,419 | -1,695 | -2,387 | -1,246 | -837 |
Principal borrowings of debt from senior secured credit facility | 554 | 1,053 | 1,674 | 1,717 | 465 |
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | 1,050 | 1,050 | 500 | 0 |
Payment of debt origination fees | -12 | -16 | -16 | -7 | 0 |
Payment of bond premium fees | 0 | -46 | -46 | 0 | 0 |
Other financing activities | -4 | 7 | 12 | 20 | 0 |
Dividends paid to Liberty | -480 | -765 | -1,005 | -1,817 | -205 |
Dividends paid to noncontrolling interest | -25 | -25 | -45 | -29 | -50 |
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | 0 | 0 | 0 |
Intercompany financing activities | 0 | 0 | 0 | 0 | 0 |
Net cash used in financing activities | -387 | -437 | -763 | -862 | -627 |
Effect of foreign exchange rate changes on cash and cash equivalents | -6 | -29 | -23 | -20 | 4 |
Net increase (decrease) in cash and cash equivalents | 91 | -124 | -83 | -20 | -61 |
Cash and cash equivalents, beginning of period | 457 | 540 | 540 | 560 | 621 |
Cash and cash equivalents, end of period | 548 | 416 | 457 | 540 | 560 |
Parent company | ' | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' | ' |
Net cash provided by operating activities | 217 | 275 | 379 | 462 | 225 |
Investing activities: | ' | ' | ' | ' | ' |
Capital expenditures, net | -74 | -33 | -106 | -76 | -83 |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 | 0 | 0 | 0 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | ' | ' | ' | 0 | ' |
Decrease in restricted cash | ' | ' | 2 | 2 | 1 |
Changes in other noncurrent assets | ' | 4 | -1 | -3 | 5 |
Intercompany investing activities | 114 | 258 | 368 | 443 | 348 |
Net cash used in investing activities | 40 | 229 | 263 | 366 | 271 |
Financing activities: | ' | ' | ' | ' | ' |
Principal payments of debt and capital lease obligations | -1,414 | -1,690 | -2,375 | -1,237 | -825 |
Principal borrowings of debt from senior secured credit facility | 554 | 1,053 | 1,674 | 1,717 | 465 |
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | 1,050 | 1,050 | 500 | ' |
Payment of debt origination fees | -12 | -16 | -16 | -7 | ' |
Payment of bond premium fees | ' | -46 | -46 | ' | ' |
Other financing activities | -4 | 7 | 12 | 20 | ' |
Dividends paid to Liberty | -480 | -765 | -1,005 | -1,817 | -205 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 |
Net short-term intercompany debt borrowings (repayments) | 65 | -21 | 190 | 214 | 104 |
Intercompany financing activities | -25 | -143 | -123 | -146 | -76 |
Net cash used in financing activities | -317 | -571 | -639 | -756 | -537 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | -60 | -67 | 3 | 72 | -41 |
Cash and cash equivalents, beginning of period | 78 | 75 | 75 | 3 | 44 |
Cash and cash equivalents, end of period | 18 | 8 | 78 | 75 | 3 |
Guarantor subsidiaries | ' | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' | ' |
Net cash provided by operating activities | 172 | 115 | 389 | 412 | 380 |
Investing activities: | ' | ' | ' | ' | ' |
Capital expenditures, net | -1 | 0 | -8 | -5 | -8 |
Expenditures for cable and satellite television distribution rights, net | -8 | -25 | -56 | -1 | -2 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | ' | ' | ' | 0 | ' |
Decrease in restricted cash | ' | ' | 0 | 0 | 0 |
Changes in other noncurrent assets | ' | 0 | 0 | 0 | 0 |
Intercompany investing activities | 27 | 149 | 277 | 265 | 190 |
Net cash used in investing activities | 18 | 124 | 213 | 259 | 180 |
Financing activities: | ' | ' | ' | ' | ' |
Principal payments of debt and capital lease obligations | 0 | 0 | 0 | 0 | 0 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | 0 | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | 0 | 0 | ' |
Payment of debt origination fees | 0 | 0 | 0 | 0 | ' |
Payment of bond premium fees | ' | 0 | 0 | ' | ' |
Other financing activities | 0 | 0 | 0 | 0 | ' |
Dividends paid to Liberty | 0 | 0 | 0 | 0 | 0 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 |
Net short-term intercompany debt borrowings (repayments) | 65 | 86 | -63 | -59 | 2 |
Intercompany financing activities | -226 | -326 | -571 | -670 | -499 |
Net cash used in financing activities | -161 | -240 | -634 | -729 | -497 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 29 | -1 | -32 | -58 | 63 |
Cash and cash equivalents, beginning of period | 133 | 165 | 165 | 223 | 160 |
Cash and cash equivalents, end of period | 162 | 164 | 133 | 165 | 223 |
Non-guarantor subsidiaries | ' | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' | ' |
Net cash provided by operating activities | 160 | 52 | 205 | 332 | 213 |
Investing activities: | ' | ' | ' | ' | ' |
Capital expenditures, net | 38 | -42 | -97 | -165 | -168 |
Expenditures for cable and satellite television distribution rights, net | 0 | -1 | -2 | -1 | 0 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | ' | ' | ' | -95 | ' |
Decrease in restricted cash | ' | ' | -1 | 0 | 0 |
Changes in other noncurrent assets | ' | -3 | -1 | 0 | -1 |
Intercompany investing activities | 0 | 0 | 0 | 0 | 0 |
Net cash used in investing activities | 38 | -46 | -101 | -261 | -169 |
Financing activities: | ' | ' | ' | ' | ' |
Principal payments of debt and capital lease obligations | -5 | -5 | -12 | -9 | -12 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | 0 | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | 0 | 0 | ' |
Payment of debt origination fees | 0 | 0 | 0 | 0 | ' |
Payment of bond premium fees | ' | 0 | 0 | ' | ' |
Other financing activities | 0 | 0 | 0 | 0 | ' |
Dividends paid to Liberty | 0 | 0 | 0 | 0 | 0 |
Dividends paid to noncontrolling interest | -25 | -25 | -45 | -29 | -50 |
Net short-term intercompany debt borrowings (repayments) | -130 | -65 | -127 | -155 | -106 |
Intercompany financing activities | 90 | 62 | 49 | 108 | 37 |
Net cash used in financing activities | -70 | -33 | -135 | -85 | -131 |
Effect of foreign exchange rate changes on cash and cash equivalents | -6 | -29 | -23 | -20 | 4 |
Net increase (decrease) in cash and cash equivalents | 122 | -56 | -54 | -34 | -83 |
Cash and cash equivalents, beginning of period | 246 | 300 | 300 | 334 | 417 |
Cash and cash equivalents, end of period | 368 | 244 | 246 | 300 | 334 |
Eliminations | ' | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' | ' |
Net cash provided by operating activities | 0 | 0 | 0 | 0 | 0 |
Investing activities: | ' | ' | ' | ' | ' |
Capital expenditures, net | -20 | 0 | 0 | 0 | 0 |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 | 0 | 0 | 0 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | ' | ' | ' | 0 | ' |
Decrease in restricted cash | ' | ' | 0 | 0 | 0 |
Changes in other noncurrent assets | ' | 0 | 0 | 0 | 0 |
Intercompany investing activities | -141 | -407 | -645 | -708 | -538 |
Net cash used in investing activities | -161 | -407 | -645 | -708 | -538 |
Financing activities: | ' | ' | ' | ' | ' |
Principal payments of debt and capital lease obligations | 0 | 0 | 0 | 0 | 0 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | 0 | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | 0 | 0 | ' |
Payment of debt origination fees | 0 | 0 | 0 | 0 | ' |
Payment of bond premium fees | ' | 0 | 0 | ' | ' |
Other financing activities | 0 | 0 | 0 | 0 | ' |
Dividends paid to Liberty | 0 | 0 | 0 | 0 | 0 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 |
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | 0 | 0 | 0 |
Intercompany financing activities | 161 | 407 | 645 | 708 | 538 |
Net cash used in financing activities | 161 | 407 | 645 | 708 | 538 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 | $0 | $0 | $0 |