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 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 1 |
Document Type | '10-Q |
Document Period End Date | 30-Jun-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Amendment Flag | 'false |
Entity Current Reporting Status submitted electronically | 'Yes |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $548 | $457 |
Restricted cash | 14 | 14 |
Accounts receivable, less allowance for doubtful accounts of $85 million at June 30, 2014 and $83 million at December 31, 2013 | 756 | 1,111 |
Inventories | 989 | 931 |
Deferred income taxes | 165 | 162 |
Prepaid expenses | 57 | 47 |
Total current assets | 2,529 | 2,722 |
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 |
Cable and satellite television distribution rights, net | 540 | 624 |
Goodwill | 5,210 | 5,197 |
Other intangible assets, net | 3,243 | 3,336 |
Other noncurrent assets | 69 | 71 |
Total assets | 12,667 | 13,056 |
Current liabilities: | ' | ' |
Current portion of debt and capital lease obligations | 11 | 13 |
Accounts payable-trade | 470 | 494 |
Accrued liabilities | 743 | 960 |
Total current liabilities | 1,224 | 1,467 |
Noncurrent liabilities: | ' | ' |
Long-term portion of debt and capital lease obligations | 3,937 | 3,800 |
Deferred compensation | 14 | 14 |
Deferred income taxes | 1,223 | 1,326 |
Other long-term liabilities | 157 | 108 |
Total liabilities | 6,555 | 6,715 |
QVC, Inc. stockholder's equity: | ' | ' |
Common stock, $0.01 par value | 0 | 0 |
Additional paid-in capital | 6,724 | 6,703 |
Accumulated deficit | -882 | -620 |
Accumulated other comprehensive income | 154 | 139 |
Total QVC, Inc. stockholder's equity | 5,996 | 6,222 |
Noncontrolling interest | 116 | 119 |
Total equity | 6,112 | 6,341 |
Total liabilities and equity | $12,667 | $13,056 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Allowance for D/A | $85 | $83 |
Accumulated depreciation | $989 | $919 |
Common stock par value | $0.01 | $0.01 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net revenue | $2,014 | $1,961 | $4,000 | $3,935 |
Cost of goods sold | 1,250 | 1,227 | 2,506 | 2,479 |
Gross profit | 764 | 734 | 1,494 | 1,456 |
Operating expenses: | ' | ' | ' | ' |
Operating | 180 | 171 | 358 | 344 |
Selling, general and administrative, including stock-based compensation | 155 | 138 | 303 | 293 |
Depreciation | 33 | 33 | 66 | 63 |
Amortization | 112 | 107 | 223 | 211 |
Operating expenses | 480 | 449 | 950 | 911 |
Operating income | 284 | 285 | 544 | 545 |
Other (expense) income: | ' | ' | ' | ' |
Equity in losses of investee | -2 | -2 | -3 | -1 |
Gains on financial instruments | 0 | 3 | 0 | 15 |
Interest expense, net | -60 | -50 | -122 | -113 |
Foreign currency gain (loss) | 1 | 0 | 0 | -1 |
Loss on extinguishment of debt | 0 | -16 | 0 | -57 |
Nonoperating income (expense) | -61 | -65 | -125 | -157 |
Income before income taxes | 223 | 220 | 419 | 388 |
Income tax expense | -83 | -81 | -157 | -143 |
Net income | 140 | 139 | 262 | 245 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 |
Net income attributable to QVC, Inc. stockholder | $130 | $126 | $243 | $220 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income Statement (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income | $140 | $139 | $262 | $245 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 |
Total comprehensive income | 142 | 123 | 280 | 138 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 |
Comprehensive income attributable to QVC, Inc. stockholder | $132 | $116 | $258 | $132 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
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 payablebtrade | -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 |
In Millions, except Share data, unless otherwise specified | ||||||
Balance, December 31, 2013 at Dec. 31, 2013 | $6,341 | $0 | $6,703 | ($620) | $139 | $119 |
Balance, January 1, 2014 (in shares) at Dec. 31, 2013 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 262 | ' | 0 | 243 | 0 | 19 |
Other comprehensive income (expense): | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | 18 | ' | 0 | 0 | 15 | 3 |
Dividends paid to Liberty and noncontrolling interest and other | -516 | ' | 0 | -491 | 0 | -25 |
Impact of tax liability allocation and indemnification agreement with Liberty | -14 | ' | 0 | -14 | 0 | 0 |
Minimum withholding taxes on net share settlements of stock-based compensation | -5 | ' | -5 | 0 | 0 | 0 |
Excess tax benefit resulting from stock-based compensation | 8 | ' | 8 | 0 | 0 | 0 |
Stockbbased compensation | 18 | ' | 18 | 0 | 0 | 0 |
Balance, June 30, 2014 at Jun. 30, 2014 | $6,112 | $0 | $6,724 | ($882) | $154 | $116 |
Balance, June 30, 2014 (in shares) at Jun. 30, 2014 | ' | 1 | ' | ' | ' | ' |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
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. | |
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. | |
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. | |
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 approximate 38% ownership interest in HSN, Inc. ("HSN"), one of our two closest televised shopping competitors. | |
In October 2013, Liberty announced that its board had authorized management to pursue a plan to recapitalize its 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. The Digital Commerce Group would have had attributed to it Liberty's subsidiaries Provide Commerce, Inc. ("Provide"), Backcountry.com, Inc., Bodybuilding.com, LLC, CommerceHub and the Evite.com business, along with cash and certain liabilities. The QVC Group, which is currently known as the Interactive Group, would have attributed to it Liberty’s subsidiary QVC, Inc. and its approximate 38% interest in HSN, Inc., along with cash and certain liabilities. | |
On July 30, 2014, Liberty announced the execution of a definitive agreement under which FTD Companies, Inc. ("FTD") will acquire Provide. FTD and Liberty expect to complete the transaction by the end of 2014. Liberty still plans to create the QVC Group tracking stock but in light of the pending Provide transaction, and other factors, management is reevaluating the optimal structure and best alignment of the Digital Commerce Group. As a result, the timing of the transition to the QVC Group has been delayed. | |
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. | |
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 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 | |||||
Jun. 30, 2014 | ||||||
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 consisted of the following: | ||||||
June 30, | December 31, | |||||
(in millions) | 2014 | 2013 | ||||
Cable and satellite television distribution rights | $ | 2,334 | 2,324 | |||
Less accumulated amortization | (1,794 | ) | (1,700 | ) | ||
Cable and satellite television distribution rights, net | $ | 540 | 624 | |||
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. | ||||||
As of June 30, 2014, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | ||||||
Remainder of 2014 | $ | 87 | ||||
2015 | 168 | |||||
2016 | 162 | |||||
2017 | 111 | |||||
2018 | 6 | |||||
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 | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Other Intangible Assets [Abstract] | ' | |||||||||||||
Intangible Assets Disclosure | ' | |||||||||||||
Other Intangible Assets, Net | ||||||||||||||
Other intangible assets consisted of the following: | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in millions) | Gross | Accumulated | Other intangible assets, net | Gross | Accumulated | Other intangible assets, net | ||||||||
cost | amortization | cost | amortization | |||||||||||
Purchased and internally developed software | $ | 630 | (423 | ) | 207 | 615 | (393 | ) | 222 | |||||
Affiliate and customer relationships | 2,451 | (1,890 | ) | 561 | 2,450 | (1,802 | ) | 648 | ||||||
Debt origination fees | 64 | (17 | ) | 47 | 51 | (13 | ) | 38 | ||||||
Trademarks (indefinite life) | 2,428 | — | 2,428 | 2,428 | — | 2,428 | ||||||||
$ | 5,573 | (2,330 | ) | 3,243 | 5,544 | (2,208 | ) | 3,336 | ||||||
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. | ||||||||||||||
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): | ||||||||||||||
Remainder of 2014 | $ | 146 | ||||||||||||
2015 | 270 | |||||||||||||
2016 | 235 | |||||||||||||
2017 | 135 | |||||||||||||
2018 | 9 | |||||||||||||
Accrued_Liabilities
Accrued Liabilities | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Accrued Liabilities [Abstract] | ' | |||||
Accrued Liabilities | ' | |||||
Accrued Liabilities | ||||||
Accrued liabilities consisted of the following: | ||||||
June 30, | December 31, | |||||
(in millions) | 2014 | 2013 | ||||
Accounts payable non-trade | 188 | 323 | ||||
Income taxes | 98 | 126 | ||||
Accrued compensation and benefits | 96 | 98 | ||||
Allowance for sales returns | 80 | 108 | ||||
Accrued interest | 78 | 58 | ||||
Deferred revenue | 73 | 73 | ||||
Sales and other taxes | 53 | 79 | ||||
Other | 77 | 95 | ||||
$ | 743 | 960 | ||||
LongTerm_Debt
Long-Term Debt | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Debt Disclosure [Abstract] | ' | |||||
Debt Disclosure | ' | |||||
Long-Term Debt | ||||||
Long-term debt consisted of the following: | ||||||
June 30, | December 31, | |||||
(in millions) | 2014 | 2013 | ||||
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 | 761 | ||||
7.375% Senior Secured Notes due 2020 | 500 | 500 | ||||
5.125% Senior Secured Notes due 2022 | 500 | 500 | ||||
4.375% Senior Secured Notes due 2023, net of original issue discount | 750 | 750 | ||||
4.85% Senior Secured Notes due 2024, net of original issue discount | 600 | — | ||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | 300 | ||||
Senior secured credit facility | 65 | 922 | ||||
Capital lease obligations | 73 | 80 | ||||
Total debt | 3,948 | 3,813 | ||||
Less current portion | (11 | ) | (13 | ) | ||
Long-term portion of debt and capital lease obligations | $ | 3,937 | 3,800 | |||
Senior Secured Notes | ||||||
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. | ||||||
Senior Secured Credit Facility | ||||||
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. | ||||||
Other Debt Related Information | ||||||
QVC was in compliance with all of its debt covenants at June 30, 2014. | ||||||
During the quarter, 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 5.5% as of June 30, 2014. |
Leases_and_Transponder_Service
Leases and Transponder Service Agreements | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Leases and Transponder Service Agreements [Abstract] | ' | |||||
Leases of Lessee Disclosure | ' | |||||
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: | ||||||
(in millions) | Capital transponders | Operating leases | ||||
Remainder of 2014 | $ | 7 | 10 | |||
2015 | 11 | 15 | ||||
2016 | 11 | 13 | ||||
2017 | 11 | 10 | ||||
2018 | 12 | 11 | ||||
Thereafter | 28 | 101 | ||||
Total | $ | 80 | 160 | |||
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. | ||||||
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. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure | ' |
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. | |
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. | |
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. | |
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. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
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. | |
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 | |||||||||
Jun. 30, 2014 | ||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||
Fair Value Disclosures | ' | |||||||||
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. | ||||||||||
The Company's assets and liabilities measured or disclosed at fair value were as follows: | ||||||||||
Fair value measurements | ||||||||||
at June 30, 2014 using | ||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | ||||||
in active | other | unobservable | ||||||||
markets for | observable | inputs | ||||||||
identical | inputs | (Level 3) | ||||||||
assets | (Level 2) | |||||||||
(Level 1) | ||||||||||
Current assets: | ||||||||||
Cash equivalents | $ | 463 | 463 | — | — | |||||
Long-term liabilities: | ||||||||||
Debt (note 6) | 4,071 | — | 4,071 | — | ||||||
Fair value measurements | ||||||||||
at December 31, 2013 using | ||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | ||||||
in active | other | unobservable | ||||||||
markets for | observable | inputs | ||||||||
identical | inputs | (Level 3) | ||||||||
assets | (Level 2) | |||||||||
(Level 1) | ||||||||||
Current assets: | ||||||||||
Cash equivalents | $ | 342 | 342 | — | — | |||||
Long-term liabilities: | ||||||||||
Debt (note 6) | 3,783 | — | 3,783 | — | ||||||
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. |
Information_about_QVCs_Operati
Information about QVC's Operating Segments | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||
Segment Reporting Disclosure | ' | ||||||||||||||||||
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. | |||||||||||||||||||
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 | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | Net | Adjusted | |||||||||||
revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | ||||||||||||
QVC-U.S. | $ | 1,352 | 325 | 1,312 | 320 | 2,657 | 626 | 2,609 | 611 | ||||||||||
QVC-Japan | 223 | 43 | 260 | 57 | 457 | 90 | 516 | 111 | |||||||||||
QVC-Germany | 227 | 40 | 207 | 35 | 477 | 79 | 457 | 78 | |||||||||||
QVC-U.K. | 178 | 33 | 153 | 26 | 343 | 60 | 293 | 45 | |||||||||||
QVC-Italy | 34 | (2 | ) | 29 | (4 | ) | 66 | (4 | ) | 60 | (7 | ) | |||||||
Consolidated QVC | $ | 2,014 | 439 | 1,961 | 434 | 4,000 | 851 | 3,935 | 838 | ||||||||||
Net revenue amounts by product category are not available from our general purpose financial statements. | |||||||||||||||||||
Other information | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | |||||||||||
QVC-U.S. | $ | 14 | 99 | 14 | 91 | 27 | 192 | 27 | 179 | ||||||||||
QVC-Japan | 4 | 2 | 5 | 2 | 9 | 4 | 8 | 4 | |||||||||||
QVC-Germany | 8 | 8 | 8 | 9 | 16 | 19 | 16 | 18 | |||||||||||
QVC-U.K. | 4 | 3 | 5 | 3 | 8 | 7 | 9 | 6 | |||||||||||
QVC-Italy | 3 | — | 1 | 2 | 6 | 1 | 3 | 4 | |||||||||||
Consolidated QVC | $ | 33 | 112 | 33 | 107 | 66 | 223 | 63 | 211 | ||||||||||
Six months ended June 30, | Year ended December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(in millions) | Total | Capital | Total | Capital | |||||||||||||||
assets | expenditures, net | assets | expenditures, net | ||||||||||||||||
QVC-U.S. | $ | 9,933 | 38 | 10,322 | 123 | ||||||||||||||
QVC-Japan | 732 | (1 | ) | 732 | 16 | ||||||||||||||
QVC-Germany | 1,103 | 4 | 1,109 | 28 | |||||||||||||||
QVC-U.K. | 628 | 6 | 613 | 16 | |||||||||||||||
QVC-Italy | 271 | 10 | 280 | 28 | |||||||||||||||
Consolidated QVC | $ | 12,667 | 57 | 13,056 | 211 | ||||||||||||||
Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | |||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||||||
QVC-U.S. | $ | 436 | 448 | ||||||||||||||||
QVC-Japan | 218 | 220 | |||||||||||||||||
QVC-Germany | 225 | 244 | |||||||||||||||||
QVC-U.K. | 129 | 129 | |||||||||||||||||
QVC-Italy | 68 | 65 | |||||||||||||||||
Consolidated QVC | $ | 1,076 | 1,106 | ||||||||||||||||
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Adjusted OIBDA | $ | 439 | 434 | 851 | 838 | ||||||||||||||
Stock‑based compensation | (10 | ) | (9 | ) | (18 | ) | (19 | ) | |||||||||||
Depreciation and amortization | (145 | ) | (140 | ) | (289 | ) | (274 | ) | |||||||||||
Equity in losses of investee | (2 | ) | (2 | ) | (3 | ) | (1 | ) | |||||||||||
Gains on financial instruments | — | 3 | — | 15 | |||||||||||||||
Interest expense, net | (60 | ) | (50 | ) | (122 | ) | (113 | ) | |||||||||||
Foreign currency gain (loss) | 1 | — | — | (1 | ) | ||||||||||||||
Loss on extinguishment of debt | — | (16 | ) | — | (57 | ) | |||||||||||||
Income before income taxes | $ | 223 | 220 | 419 | 388 | ||||||||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||
Comprehensive Income (Loss) | ' | |||||||
Other Comprehensive Income | ||||||||
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 | ||||||
Balance at January 1, 2013 | $ | 186 | 186 | |||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (88 | ) | (88 | ) | ||||
Balance at June 30, 2013 | 98 | 98 | ||||||
Balance at January 1, 2014 | $ | 139 | 139 | |||||
Other comprehensive income attributable to QVC, Inc. stockholder | 15 | 15 | ||||||
Balance at June 30, 2014 | 154 | 154 | ||||||
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 | |||||
Three months ended June 30, 2014: | ||||||||
Foreign currency translation adjustments | $ | 2 | — | 2 | ||||
Other comprehensive income | 2 | — | 2 | |||||
Three months ended June 30, 2013: | ||||||||
Foreign currency translation adjustments | $ | (13 | ) | (3 | ) | (16 | ) | |
Other comprehensive loss | (13 | ) | (3 | ) | (16 | ) | ||
Six months ended June 30, 2014: | ||||||||
Foreign currency translation adjustments | $ | 21 | (3 | ) | 18 | |||
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 |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
QVC declared and paid dividends to Liberty in the amount of $133 million subsequent to June 30, 2014. |
GuarantorNonGuarantor_Subsidia
Guarantor/Non-Guarantor Subsidiary Financial Information | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | ' | |||||||||||
Guarantor Non-guarantor Subsidiary Financial Information | ' | |||||||||||
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. | ||||||||||||
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. | ||||||||||||
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 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 adjustments to the condensed consolidating statements of operations: | ||||||||||||
• | 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; | |||||||||||
• | 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; | |||||||||||
• | 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 | |||||||||||
• | 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. | |||||||||||
The adjustments to the condensed consolidating statements of cash flows for the six months ended June 30, 2013: | ||||||||||||
• | 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; | |||||||||||
• | 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 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. | |||||||||||
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. | ||||||||||||
Condensed consolidating balance sheets | ||||||||||||
June 30, 2014 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 18 | 162 | 368 | — | 548 | ||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||
Accounts receivable, net | 490 | — | 266 | — | 756 | |||||||
Inventories | 725 | — | 264 | — | 989 | |||||||
Deferred income taxes | 147 | — | 18 | — | 165 | |||||||
Prepaid expenses | 28 | — | 29 | — | 57 | |||||||
Total current assets | 1,419 | 162 | 948 | — | 2,529 | |||||||
Property and equipment, net | 253 | 66 | 757 | — | 1,076 | |||||||
Cable and satellite television distribution rights, net | — | 441 | 99 | — | 540 | |||||||
Goodwill | 4,169 | — | 1,041 | — | 5,210 | |||||||
Other intangible assets, net | 1,092 | 2,049 | 102 | — | 3,243 | |||||||
Other noncurrent assets | 9 | — | 60 | — | 69 | |||||||
Investments in subsidiaries | 4,893 | 1,601 | — | (6,494 | ) | — | ||||||
Total assets | $ | 11,835 | 4,319 | 3,007 | (6,494 | ) | 12,667 | |||||
Liabilities and equity | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 9 | — | 11 | ||||||
Accounts payable-trade | 275 | — | 195 | — | 470 | |||||||
Accrued liabilities | 150 | 86 | 507 | — | 743 | |||||||
Intercompany accounts payable (receivable) | 1,084 | (814 | ) | (270 | ) | — | — | |||||
Total current liabilities | 1,511 | (728 | ) | 441 | — | 1,224 | ||||||
Long-term portion of debt and capital lease obligations | 3,886 | — | 51 | — | 3,937 | |||||||
Deferred compensation | 14 | — | — | — | 14 | |||||||
Deferred income taxes | 319 | 901 | 3 | — | 1,223 | |||||||
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 | |||||
Condensed consolidating balance sheets | ||||||||||||
December 31, 2013 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 78 | 133 | 246 | — | 457 | ||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||
Accounts receivable, net | 816 | — | 295 | — | 1,111 | |||||||
Inventories | 684 | — | 247 | — | 931 | |||||||
Deferred income taxes | 146 | — | 16 | — | 162 | |||||||
Prepaid expenses | 20 | — | 27 | — | 47 | |||||||
Total current assets | 1,755 | 133 | 834 | — | 2,722 | |||||||
Property and equipment, net | 265 | 67 | 774 | — | 1,106 | |||||||
Cable and satellite television distribution rights, net | — | 510 | 114 | — | 624 | |||||||
Goodwill | 4,169 | — | 1,028 | — | 5,197 | |||||||
Other intangible assets, net | 1,128 | 2,050 | 158 | — | 3,336 | |||||||
Other noncurrent assets | 8 | — | 63 | — | 71 | |||||||
Investments in subsidiaries | 4,894 | 1,628 | — | (6,522 | ) | — | ||||||
Total assets | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | |||||
Liabilities and equity | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 11 | — | 13 | ||||||
Accounts payable-trade | 336 | — | 158 | — | 494 | |||||||
Accrued liabilities | 393 | 96 | 471 | — | 960 | |||||||
Intercompany accounts payable (receivable) | 1,019 | (879 | ) | (140 | ) | — | — | |||||
Total current liabilities | 1,750 | (783 | ) | 500 | — | 1,467 | ||||||
Long-term portion of debt and capital lease obligations | 3,745 | — | 55 | — | 3,800 | |||||||
Deferred compensation | 13 | — | 1 | — | 14 | |||||||
Deferred income taxes | 399 | 923 | 4 | — | 1,326 | |||||||
Other long-term liabilities | 90 | — | 18 | — | 108 | |||||||
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 | |||||
Condensed consolidating statements of operations | ||||||||||||
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 | |||||
Condensed consolidating statements of operations - Adjusted | ||||||||||||
Three months ended June 30, 2013 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 1,326 | 182 | 681 | (228 | ) | 1,961 | |||||
Cost of goods sold | 836 | 23 | 427 | (59 | ) | 1,227 | ||||||
Gross profit | 490 | 159 | 254 | (169 | ) | 734 | ||||||
Operating expenses: | ||||||||||||
Operating | 38 | 48 | 85 | — | 171 | |||||||
Selling, general and administrative, including stock-based compensation | 227 | — | 80 | (169 | ) | 138 | ||||||
Depreciation | 9 | 2 | 22 | — | 33 | |||||||
Amortization | 51 | 36 | 20 | — | 107 | |||||||
Intercompany management expense (income) | 15 | (4 | ) | (11 | ) | — | — | |||||
340 | 82 | 196 | (169 | ) | 449 | |||||||
Operating income | 150 | 77 | 58 | — | 285 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | |||||
Gains on financial instruments | — | — | 3 | — | 3 | |||||||
Interest (expense) income, net | (50 | ) | (1 | ) | 1 | — | (50 | ) | ||||
Foreign currency (loss) gain | (1 | ) | — | 1 | — | — | ||||||
Loss on extinguishment of debt | (16 | ) | — | — | — | (16 | ) | |||||
Intercompany interest and other (expense) income | (4 | ) | 12 | (8 | ) | — | — | |||||
(71 | ) | 11 | (5 | ) | — | (65 | ) | |||||
Income before income taxes | 79 | 88 | 53 | — | 220 | |||||||
Income tax expense | (21 | ) | (32 | ) | (28 | ) | — | (81 | ) | |||
Equity in earnings of subsidiaries, net of tax | 81 | 11 | — | (92 | ) | — | ||||||
Net income | 139 | 67 | 25 | (92 | ) | 139 | ||||||
Less net income attributable to the noncontrolling interest | (13 | ) | — | (13 | ) | 13 | (13 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 126 | 67 | 12 | (79 | ) | 126 | |||||
Condensed consolidating statements of operations | ||||||||||||
Six 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 | $ | 2,692 | 364 | 1,399 | (455 | ) | 4,000 | |||||
Cost of goods sold | 1,692 | 48 | 878 | (112 | ) | 2,506 | ||||||
Gross profit | 1,000 | 316 | 521 | (343 | ) | 1,494 | ||||||
Operating expenses: | ||||||||||||
Operating | 82 | 95 | 181 | — | 358 | |||||||
Selling, general and administrative, including stock-based compensation | 466 | (1 | ) | 181 | (343 | ) | 303 | |||||
Depreciation | 19 | 3 | 44 | — | 66 | |||||||
Amortization | 110 | 77 | 36 | — | 223 | |||||||
Intercompany management expense (income) | 40 | (8 | ) | (32 | ) | — | — | |||||
717 | 166 | 410 | (343 | ) | 950 | |||||||
Operating income | 283 | 150 | 111 | — | 544 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (3 | ) | — | (3 | ) | |||||
Interest expense, net | (113 | ) | — | (9 | ) | — | (122 | ) | ||||
Foreign currency (loss) gain | (3 | ) | — | 3 | — | — | ||||||
Intercompany interest and other (expense) income | (10 | ) | 26 | 4 | (20 | ) | — | |||||
(126 | ) | 26 | (5 | ) | (20 | ) | (125 | ) | ||||
Income before income taxes | 157 | 176 | 106 | (20 | ) | 419 | ||||||
Income tax expense | (7 | ) | (52 | ) | (98 | ) | — | (157 | ) | |||
Equity in earnings (losses) of subsidiaries, net of tax | 112 | (19 | ) | — | (93 | ) | — | |||||
Net income | 262 | 105 | 8 | (113 | ) | 262 | ||||||
Less net income attributable to the noncontrolling interest | (19 | ) | — | (19 | ) | 19 | (19 | ) | ||||
Net income (loss) attributable to QVC, Inc. stockholder | $ | 243 | 105 | (11 | ) | (94 | ) | 243 | ||||
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. | ||||||||||||
Condensed consolidating statements of operations - Adjusted | ||||||||||||
Six months ended June 30, 2013 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 2,640 | 365 | 1,389 | (459 | ) | 3,935 | |||||
Cost of goods sold | 1,679 | 49 | 871 | (120 | ) | 2,479 | ||||||
Gross profit | 961 | 316 | 518 | (339 | ) | 1,456 | ||||||
Operating expenses: | ||||||||||||
Operating | 75 | 93 | 176 | — | 344 | |||||||
Selling, general and administrative, including stock-based compensation | 463 | — | 169 | (339 | ) | 293 | ||||||
Depreciation | 19 | 3 | 41 | — | 63 | |||||||
Amortization | 102 | 70 | 39 | — | 211 | |||||||
Intercompany management expense (income) | 32 | (7 | ) | (25 | ) | — | — | |||||
691 | 159 | 400 | (339 | ) | 911 | |||||||
Operating income | 270 | 157 | 118 | — | 545 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (1 | ) | — | (1 | ) | |||||
Gains on financial instruments | 12 | — | 3 | — | 15 | |||||||
Interest expense, net | (112 | ) | (1 | ) | — | — | (113 | ) | ||||
Foreign currency (loss) gain | (2 | ) | (1 | ) | 2 | — | (1 | ) | ||||
Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | |||||
Intercompany interest and other (expense) income | (7 | ) | 25 | (18 | ) | — | — | |||||
(166 | ) | 23 | (14 | ) | — | (157 | ) | |||||
Income before income taxes | 104 | 180 | 104 | — | 388 | |||||||
Income tax expense | (32 | ) | (60 | ) | (51 | ) | — | (143 | ) | |||
Equity in earnings of subsidiaries, net of tax | 173 | 26 | — | (199 | ) | — | ||||||
Net income | 245 | 146 | 53 | (199 | ) | 245 | ||||||
Less net income attributable to the noncontrolling interest | (25 | ) | — | (25 | ) | 25 | (25 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 220 | 146 | 28 | (174 | ) | 220 | |||||
Condensed consolidating statements of comprehensive income | ||||||||||||
Three 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 | $ | 140 | 94 | 43 | (137 | ) | 140 | |||||
Foreign currency translation adjustments | 2 | — | 2 | (2 | ) | 2 | ||||||
Total comprehensive income | 142 | 94 | 45 | (139 | ) | 142 | ||||||
Comprehensive income attributable to noncontrolling interest | (10 | ) | — | (10 | ) | 10 | (10 | ) | ||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 132 | 94 | 35 | (129 | ) | 132 | |||||
Condensed consolidating statements of comprehensive income - Adjusted | ||||||||||||
Three months ended June 30, 2013 | ||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 139 | 67 | 25 | (92 | ) | 139 | |||||
Foreign currency translation adjustments | (16 | ) | — | (16 | ) | 16 | (16 | ) | ||||
Total comprehensive income | 123 | 67 | 9 | (76 | ) | 123 | ||||||
Comprehensive income attributable to noncontrolling interest | (7 | ) | — | (7 | ) | 7 | (7 | ) | ||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 116 | 67 | 2 | (69 | ) | 116 | |||||
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 | |||||
Condensed consolidating statements of comprehensive income - Adjusted | ||||||||||||
Six months ended June 30, 2013 | ||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 245 | 146 | 53 | (199 | ) | 245 | |||||
Foreign currency translation adjustments | (107 | ) | — | (107 | ) | 107 | (107 | ) | ||||
Total comprehensive income (loss) | 138 | 146 | (54 | ) | (92 | ) | 138 | |||||
Comprehensive income attributable to noncontrolling interest | (6 | ) | — | (6 | ) | 6 | (6 | ) | ||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 132 | 146 | (60 | ) | (86 | ) | 132 | ||||
Condensed consolidating statements of cash flows | ||||||||||||
Six months ended June 30, 2014 | ||||||||||||
(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 | $ | 217 | 172 | 160 | — | 549 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (74 | ) | (1 | ) | 38 | (20 | ) | (57 | ) | |||
Expenditures for cable and satellite television distribution rights, net | — | (8 | ) | — | — | (8 | ) | |||||
Intercompany investing activities | 114 | 27 | — | (141 | ) | — | ||||||
Net cash provided by (used in) investing activities | 40 | 18 | 38 | (161 | ) | (65 | ) | |||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (1,414 | ) | — | (5 | ) | — | (1,419 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 554 | — | — | — | 554 | |||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | — | — | — | 999 | |||||||
Payment of debt origination fees | (12 | ) | — | — | — | (12 | ) | |||||
Other financing activities | (4 | ) | — | — | — | (4 | ) | |||||
Dividends paid to Liberty | (480 | ) | — | — | — | (480 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | |||||
Net short-term intercompany debt borrowings (repayments) | 65 | 65 | (130 | ) | — | — | ||||||
Intercompany financing activities | (25 | ) | (226 | ) | 90 | 161 | — | |||||
Net cash used in financing activities | (317 | ) | (161 | ) | (70 | ) | 161 | (387 | ) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (6 | ) | — | (6 | ) | |||||
Net (decrease) increase in cash and cash equivalents | (60 | ) | 29 | 122 | — | 91 | ||||||
Cash and cash equivalents, beginning of period | 78 | 133 | 246 | — | 457 | |||||||
Cash and cash equivalents, end of period | $ | 18 | 162 | 368 | — | 548 | ||||||
Condensed consolidating statements of cash flows - Adjusted | ||||||||||||
Six months ended June 30, 2013 | ||||||||||||
(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 | $ | 275 | 115 | 52 | — | 442 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (33 | ) | — | (42 | ) | — | (75 | ) | ||||
Expenditures for cable and satellite television distribution rights, net | — | (25 | ) | (1 | ) | — | (26 | ) | ||||
Changes in other noncurrent assets | 4 | — | (3 | ) | — | 1 | ||||||
Intercompany investing activities | 258 | 149 | — | (407 | ) | — | ||||||
Net cash provided by (used in) investing activities | 229 | 124 | (46 | ) | (407 | ) | (100 | ) | ||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (1,690 | ) | — | (5 | ) | — | (1,695 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 1,053 | — | — | — | 1,053 | |||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | |||||||
Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | |||||
Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | |||||
Other financing activities | 7 | — | — | — | 7 | |||||||
Dividends paid to Liberty | (765 | ) | — | — | — | (765 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | |||||
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 |
Jun. 30, 2014 | |
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. | |
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. | |
Reclassification policy | ' |
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 | |||||
Jun. 30, 2014 | ||||||
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: | ||||||
June 30, | December 31, | |||||
(in millions) | 2014 | 2013 | ||||
Cable and satellite television distribution rights | $ | 2,334 | 2,324 | |||
Less accumulated amortization | (1,794 | ) | (1,700 | ) | ||
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): | ||||||
Remainder of 2014 | $ | 87 | ||||
2015 | 168 | |||||
2016 | 162 | |||||
2017 | 111 | |||||
2018 | 6 | |||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Schedule of 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_Ta
Other Intangible Assets, Net (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Other Intangible Assets [Abstract] | ' | |||||||||||||
Schedule of Acquired Intangible Assets by Class | ' | |||||||||||||
Other intangible assets consisted of the following: | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in millions) | Gross | Accumulated | Other intangible assets, net | Gross | Accumulated | Other intangible assets, net | ||||||||
cost | amortization | cost | amortization | |||||||||||
Purchased and internally developed software | $ | 630 | (423 | ) | 207 | 615 | (393 | ) | 222 | |||||
Affiliate and customer relationships | 2,451 | (1,890 | ) | 561 | 2,450 | (1,802 | ) | 648 | ||||||
Debt origination fees | 64 | (17 | ) | 47 | 51 | (13 | ) | 38 | ||||||
Trademarks (indefinite life) | 2,428 | — | 2,428 | 2,428 | — | 2,428 | ||||||||
$ | 5,573 | (2,330 | ) | 3,243 | 5,544 | (2,208 | ) | 3,336 | ||||||
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): | ||||||||||||||
Remainder of 2014 | $ | 146 | ||||||||||||
2015 | 270 | |||||||||||||
2016 | 235 | |||||||||||||
2017 | 135 | |||||||||||||
2018 | 9 | |||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Accrued Liabilities [Abstract] | ' | |||||
Schedule of Accrued Liabilities | ' | |||||
Accrued liabilities consisted of the following: | ||||||
June 30, | December 31, | |||||
(in millions) | 2014 | 2013 | ||||
Accounts payable non-trade | 188 | 323 | ||||
Income taxes | 98 | 126 | ||||
Accrued compensation and benefits | 96 | 98 | ||||
Allowance for sales returns | 80 | 108 | ||||
Accrued interest | 78 | 58 | ||||
Deferred revenue | 73 | 73 | ||||
Sales and other taxes | 53 | 79 | ||||
Other | 77 | 95 | ||||
$ | 743 | 960 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Debt Disclosure [Abstract] | ' | |||||
Schedule of Debt | ' | |||||
Long-term debt consisted of the following: | ||||||
June 30, | December 31, | |||||
(in millions) | 2014 | 2013 | ||||
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 | 761 | ||||
7.375% Senior Secured Notes due 2020 | 500 | 500 | ||||
5.125% Senior Secured Notes due 2022 | 500 | 500 | ||||
4.375% Senior Secured Notes due 2023, net of original issue discount | 750 | 750 | ||||
4.85% Senior Secured Notes due 2024, net of original issue discount | 600 | — | ||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | 300 | ||||
Senior secured credit facility | 65 | 922 | ||||
Capital lease obligations | 73 | 80 | ||||
Total debt | 3,948 | 3,813 | ||||
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 | |||||
Jun. 30, 2014 | ||||||
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: | ||||||
(in millions) | Capital transponders | Operating leases | ||||
Remainder of 2014 | $ | 7 | 10 | |||
2015 | 11 | 15 | ||||
2016 | 11 | 13 | ||||
2017 | 11 | 10 | ||||
2018 | 12 | 11 | ||||
Thereafter | 28 | 101 | ||||
Total | $ | 80 | 160 | |||
Assets_and_Liabilities_Measure1
Assets and Liabilities Measured at Fair Value (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
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: | ||||||||||
Fair value measurements | ||||||||||
at June 30, 2014 using | ||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | ||||||
in active | other | unobservable | ||||||||
markets for | observable | inputs | ||||||||
identical | inputs | (Level 3) | ||||||||
assets | (Level 2) | |||||||||
(Level 1) | ||||||||||
Current assets: | ||||||||||
Cash equivalents | $ | 463 | 463 | — | — | |||||
Long-term liabilities: | ||||||||||
Debt (note 6) | 4,071 | — | 4,071 | — | ||||||
Fair value measurements | ||||||||||
at December 31, 2013 using | ||||||||||
(in millions) | Total | Quoted prices | Significant | Significant | ||||||
in active | other | unobservable | ||||||||
markets for | observable | inputs | ||||||||
identical | inputs | (Level 3) | ||||||||
assets | (Level 2) | |||||||||
(Level 1) | ||||||||||
Current assets: | ||||||||||
Cash equivalents | $ | 342 | 342 | — | — | |||||
Long-term liabilities: | ||||||||||
Debt (note 6) | 3,783 | — | 3,783 | — | ||||||
Information_about_QVCs_Operati1
Information about QVC's Operating Segments (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||
Schedule of Revenue and Adjusted OIBDA by Segment | ' | ||||||||||||||||||
Performance measures | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | Net | Adjusted | |||||||||||
revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | ||||||||||||
QVC-U.S. | $ | 1,352 | 325 | 1,312 | 320 | 2,657 | 626 | 2,609 | 611 | ||||||||||
QVC-Japan | 223 | 43 | 260 | 57 | 457 | 90 | 516 | 111 | |||||||||||
QVC-Germany | 227 | 40 | 207 | 35 | 477 | 79 | 457 | 78 | |||||||||||
QVC-U.K. | 178 | 33 | 153 | 26 | 343 | 60 | 293 | 45 | |||||||||||
QVC-Italy | 34 | (2 | ) | 29 | (4 | ) | 66 | (4 | ) | 60 | (7 | ) | |||||||
Consolidated QVC | $ | 2,014 | 439 | 1,961 | 434 | 4,000 | 851 | 3,935 | 838 | ||||||||||
Schedule of Depreciation and Amortization by Segment | ' | ||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | |||||||||||
QVC-U.S. | $ | 14 | 99 | 14 | 91 | 27 | 192 | 27 | 179 | ||||||||||
QVC-Japan | 4 | 2 | 5 | 2 | 9 | 4 | 8 | 4 | |||||||||||
QVC-Germany | 8 | 8 | 8 | 9 | 16 | 19 | 16 | 18 | |||||||||||
QVC-U.K. | 4 | 3 | 5 | 3 | 8 | 7 | 9 | 6 | |||||||||||
QVC-Italy | 3 | — | 1 | 2 | 6 | 1 | 3 | 4 | |||||||||||
Consolidated QVC | $ | 33 | 112 | 33 | 107 | 66 | 223 | 63 | 211 | ||||||||||
Schedule of Capital Expenditures and Total Assets by Segment | ' | ||||||||||||||||||
Six months ended June 30, | Year ended December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(in millions) | Total | Capital | Total | Capital | |||||||||||||||
assets | expenditures, net | assets | expenditures, net | ||||||||||||||||
QVC-U.S. | $ | 9,933 | 38 | 10,322 | 123 | ||||||||||||||
QVC-Japan | 732 | (1 | ) | 732 | 16 | ||||||||||||||
QVC-Germany | 1,103 | 4 | 1,109 | 28 | |||||||||||||||
QVC-U.K. | 628 | 6 | 613 | 16 | |||||||||||||||
QVC-Italy | 271 | 10 | 280 | 28 | |||||||||||||||
Consolidated QVC | $ | 12,667 | 57 | 13,056 | 211 | ||||||||||||||
Long-Lived Assets by Segment | ' | ||||||||||||||||||
Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | |||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||||||
QVC-U.S. | $ | 436 | 448 | ||||||||||||||||
QVC-Japan | 218 | 220 | |||||||||||||||||
QVC-Germany | 225 | 244 | |||||||||||||||||
QVC-U.K. | 129 | 129 | |||||||||||||||||
QVC-Italy | 68 | 65 | |||||||||||||||||
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: | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Adjusted OIBDA | $ | 439 | 434 | 851 | 838 | ||||||||||||||
Stock‑based compensation | (10 | ) | (9 | ) | (18 | ) | (19 | ) | |||||||||||
Depreciation and amortization | (145 | ) | (140 | ) | (289 | ) | (274 | ) | |||||||||||
Equity in losses of investee | (2 | ) | (2 | ) | (3 | ) | (1 | ) | |||||||||||
Gains on financial instruments | — | 3 | — | 15 | |||||||||||||||
Interest expense, net | (60 | ) | (50 | ) | (122 | ) | (113 | ) | |||||||||||
Foreign currency gain (loss) | 1 | — | — | (1 | ) | ||||||||||||||
Loss on extinguishment of debt | — | (16 | ) | — | (57 | ) | |||||||||||||
Income before income taxes | $ | 223 | 220 | 419 | 388 | ||||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
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: | ||||||||
(in millions) | Foreign currency translation adjustments | AOCI | ||||||
Balance at January 1, 2013 | $ | 186 | 186 | |||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (88 | ) | (88 | ) | ||||
Balance at June 30, 2013 | 98 | 98 | ||||||
Balance at January 1, 2014 | $ | 139 | 139 | |||||
Other comprehensive income attributable to QVC, Inc. stockholder | 15 | 15 | ||||||
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: | ||||||||
(in millions) | Before-tax amount | Tax (expense) benefit | Net-of-tax amount | |||||
Three months ended June 30, 2014: | ||||||||
Foreign currency translation adjustments | $ | 2 | — | 2 | ||||
Other comprehensive income | 2 | — | 2 | |||||
Three months ended June 30, 2013: | ||||||||
Foreign currency translation adjustments | $ | (13 | ) | (3 | ) | (16 | ) | |
Other comprehensive loss | (13 | ) | (3 | ) | (16 | ) | ||
Six months ended June 30, 2014: | ||||||||
Foreign currency translation adjustments | $ | 21 | (3 | ) | 18 | |||
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 | ) | |||
GuarantorNonGuarantor_Subsidia1
Guarantor/Non-Guarantor Subsidiary Financial Information (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | ' | |||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Year | ' | |||||||||||
Condensed consolidating balance sheets | ||||||||||||
June 30, 2014 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 18 | 162 | 368 | — | 548 | ||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||
Accounts receivable, net | 490 | — | 266 | — | 756 | |||||||
Inventories | 725 | — | 264 | — | 989 | |||||||
Deferred income taxes | 147 | — | 18 | — | 165 | |||||||
Prepaid expenses | 28 | — | 29 | — | 57 | |||||||
Total current assets | 1,419 | 162 | 948 | — | 2,529 | |||||||
Property and equipment, net | 253 | 66 | 757 | — | 1,076 | |||||||
Cable and satellite television distribution rights, net | — | 441 | 99 | — | 540 | |||||||
Goodwill | 4,169 | — | 1,041 | — | 5,210 | |||||||
Other intangible assets, net | 1,092 | 2,049 | 102 | — | 3,243 | |||||||
Other noncurrent assets | 9 | — | 60 | — | 69 | |||||||
Investments in subsidiaries | 4,893 | 1,601 | — | (6,494 | ) | — | ||||||
Total assets | $ | 11,835 | 4,319 | 3,007 | (6,494 | ) | 12,667 | |||||
Liabilities and equity | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 9 | — | 11 | ||||||
Accounts payable-trade | 275 | — | 195 | — | 470 | |||||||
Accrued liabilities | 150 | 86 | 507 | — | 743 | |||||||
Intercompany accounts payable (receivable) | 1,084 | (814 | ) | (270 | ) | — | — | |||||
Total current liabilities | 1,511 | (728 | ) | 441 | — | 1,224 | ||||||
Long-term portion of debt and capital lease obligations | 3,886 | — | 51 | — | 3,937 | |||||||
Deferred compensation | 14 | — | — | — | 14 | |||||||
Deferred income taxes | 319 | 901 | 3 | — | 1,223 | |||||||
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 | ||||||||||||
December 31, 2013 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 78 | 133 | 246 | — | 457 | ||||||
Restricted cash | 11 | — | 3 | — | 14 | |||||||
Accounts receivable, net | 816 | — | 295 | — | 1,111 | |||||||
Inventories | 684 | — | 247 | — | 931 | |||||||
Deferred income taxes | 146 | — | 16 | — | 162 | |||||||
Prepaid expenses | 20 | — | 27 | — | 47 | |||||||
Total current assets | 1,755 | 133 | 834 | — | 2,722 | |||||||
Property and equipment, net | 265 | 67 | 774 | — | 1,106 | |||||||
Cable and satellite television distribution rights, net | — | 510 | 114 | — | 624 | |||||||
Goodwill | 4,169 | — | 1,028 | — | 5,197 | |||||||
Other intangible assets, net | 1,128 | 2,050 | 158 | — | 3,336 | |||||||
Other noncurrent assets | 8 | — | 63 | — | 71 | |||||||
Investments in subsidiaries | 4,894 | 1,628 | — | (6,522 | ) | — | ||||||
Total assets | $ | 12,219 | 4,388 | 2,971 | (6,522 | ) | 13,056 | |||||
Liabilities and equity | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 11 | — | 13 | ||||||
Accounts payable-trade | 336 | — | 158 | — | 494 | |||||||
Accrued liabilities | 393 | 96 | 471 | — | 960 | |||||||
Intercompany accounts payable (receivable) | 1,019 | (879 | ) | (140 | ) | — | — | |||||
Total current liabilities | 1,750 | (783 | ) | 500 | — | 1,467 | ||||||
Long-term portion of debt and capital lease obligations | 3,745 | — | 55 | — | 3,800 | |||||||
Deferred compensation | 13 | — | 1 | — | 14 | |||||||
Deferred income taxes | 399 | 923 | 4 | — | 1,326 | |||||||
Other long-term liabilities | 90 | — | 18 | — | 108 | |||||||
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, Prior Year | ' | |||||||||||
Condensed consolidating statements of operations - Adjusted | ||||||||||||
Three months ended June 30, 2013 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 1,326 | 182 | 681 | (228 | ) | 1,961 | |||||
Cost of goods sold | 836 | 23 | 427 | (59 | ) | 1,227 | ||||||
Gross profit | 490 | 159 | 254 | (169 | ) | 734 | ||||||
Operating expenses: | ||||||||||||
Operating | 38 | 48 | 85 | — | 171 | |||||||
Selling, general and administrative, including stock-based compensation | 227 | — | 80 | (169 | ) | 138 | ||||||
Depreciation | 9 | 2 | 22 | — | 33 | |||||||
Amortization | 51 | 36 | 20 | — | 107 | |||||||
Intercompany management expense (income) | 15 | (4 | ) | (11 | ) | — | — | |||||
340 | 82 | 196 | (169 | ) | 449 | |||||||
Operating income | 150 | 77 | 58 | — | 285 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (2 | ) | — | (2 | ) | |||||
Gains on financial instruments | — | — | 3 | — | 3 | |||||||
Interest (expense) income, net | (50 | ) | (1 | ) | 1 | — | (50 | ) | ||||
Foreign currency (loss) gain | (1 | ) | — | 1 | — | — | ||||||
Loss on extinguishment of debt | (16 | ) | — | — | — | (16 | ) | |||||
Intercompany interest and other (expense) income | (4 | ) | 12 | (8 | ) | — | — | |||||
(71 | ) | 11 | (5 | ) | — | (65 | ) | |||||
Income before income taxes | 79 | 88 | 53 | — | 220 | |||||||
Income tax expense | (21 | ) | (32 | ) | (28 | ) | — | (81 | ) | |||
Equity in earnings of subsidiaries, net of tax | 81 | 11 | — | (92 | ) | — | ||||||
Net income | 139 | 67 | 25 | (92 | ) | 139 | ||||||
Less net income attributable to the noncontrolling interest | (13 | ) | — | (13 | ) | 13 | (13 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 126 | 67 | 12 | (79 | ) | 126 | |||||
Condensed consolidating statements of operations - Adjusted | ||||||||||||
Six months ended June 30, 2013 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 2,640 | 365 | 1,389 | (459 | ) | 3,935 | |||||
Cost of goods sold | 1,679 | 49 | 871 | (120 | ) | 2,479 | ||||||
Gross profit | 961 | 316 | 518 | (339 | ) | 1,456 | ||||||
Operating expenses: | ||||||||||||
Operating | 75 | 93 | 176 | — | 344 | |||||||
Selling, general and administrative, including stock-based compensation | 463 | — | 169 | (339 | ) | 293 | ||||||
Depreciation | 19 | 3 | 41 | — | 63 | |||||||
Amortization | 102 | 70 | 39 | — | 211 | |||||||
Intercompany management expense (income) | 32 | (7 | ) | (25 | ) | — | — | |||||
691 | 159 | 400 | (339 | ) | 911 | |||||||
Operating income | 270 | 157 | 118 | — | 545 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (1 | ) | — | (1 | ) | |||||
Gains on financial instruments | 12 | — | 3 | — | 15 | |||||||
Interest expense, net | (112 | ) | (1 | ) | — | — | (113 | ) | ||||
Foreign currency (loss) gain | (2 | ) | (1 | ) | 2 | — | (1 | ) | ||||
Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | |||||
Intercompany interest and other (expense) income | (7 | ) | 25 | (18 | ) | — | — | |||||
(166 | ) | 23 | (14 | ) | — | (157 | ) | |||||
Income before income taxes | 104 | 180 | 104 | — | 388 | |||||||
Income tax expense | (32 | ) | (60 | ) | (51 | ) | — | (143 | ) | |||
Equity in earnings of subsidiaries, net of tax | 173 | 26 | — | (199 | ) | — | ||||||
Net income | 245 | 146 | 53 | (199 | ) | 245 | ||||||
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, Statements of Operations, Current Year | ' | |||||||||||
Condensed consolidating statements of operations | ||||||||||||
Six 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 | $ | 2,692 | 364 | 1,399 | (455 | ) | 4,000 | |||||
Cost of goods sold | 1,692 | 48 | 878 | (112 | ) | 2,506 | ||||||
Gross profit | 1,000 | 316 | 521 | (343 | ) | 1,494 | ||||||
Operating expenses: | ||||||||||||
Operating | 82 | 95 | 181 | — | 358 | |||||||
Selling, general and administrative, including stock-based compensation | 466 | (1 | ) | 181 | (343 | ) | 303 | |||||
Depreciation | 19 | 3 | 44 | — | 66 | |||||||
Amortization | 110 | 77 | 36 | — | 223 | |||||||
Intercompany management expense (income) | 40 | (8 | ) | (32 | ) | — | — | |||||
717 | 166 | 410 | (343 | ) | 950 | |||||||
Operating income | 283 | 150 | 111 | — | 544 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (3 | ) | — | (3 | ) | |||||
Interest expense, net | (113 | ) | — | (9 | ) | — | (122 | ) | ||||
Foreign currency (loss) gain | (3 | ) | — | 3 | — | — | ||||||
Intercompany interest and other (expense) income | (10 | ) | 26 | 4 | (20 | ) | — | |||||
(126 | ) | 26 | (5 | ) | (20 | ) | (125 | ) | ||||
Income before income taxes | 157 | 176 | 106 | (20 | ) | 419 | ||||||
Income tax expense | (7 | ) | (52 | ) | (98 | ) | — | (157 | ) | |||
Equity in earnings (losses) of subsidiaries, net of tax | 112 | (19 | ) | — | (93 | ) | — | |||||
Net income | 262 | 105 | 8 | (113 | ) | 262 | ||||||
Less net income attributable to the noncontrolling interest | (19 | ) | — | (19 | ) | 19 | (19 | ) | ||||
Net income (loss) attributable to QVC, Inc. stockholder | $ | 243 | 105 | (11 | ) | (94 | ) | 243 | ||||
Condensed consolidating statements of operations | ||||||||||||
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, Comprehensive Income (Loss), Prior Year | ' | |||||||||||
Three months ended June 30, 2013 | ||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 139 | 67 | 25 | (92 | ) | 139 | |||||
Foreign currency translation adjustments | (16 | ) | — | (16 | ) | 16 | (16 | ) | ||||
Total comprehensive income | 123 | 67 | 9 | (76 | ) | 123 | ||||||
Comprehensive income attributable to noncontrolling interest | (7 | ) | — | (7 | ) | 7 | (7 | ) | ||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 116 | 67 | 2 | (69 | ) | 116 | |||||
Condensed consolidating statements of comprehensive income - Adjusted | ||||||||||||
Six months ended June 30, 2013 | ||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 245 | 146 | 53 | (199 | ) | 245 | |||||
Foreign currency translation adjustments | (107 | ) | — | (107 | ) | 107 | (107 | ) | ||||
Total comprehensive income (loss) | 138 | 146 | (54 | ) | (92 | ) | 138 | |||||
Comprehensive income attributable to noncontrolling interest | (6 | ) | — | (6 | ) | 6 | (6 | ) | ||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 132 | 146 | (60 | ) | (86 | ) | 132 | ||||
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Year | ' | |||||||||||
Condensed consolidating statements of comprehensive income | ||||||||||||
Three 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 | $ | 140 | 94 | 43 | (137 | ) | 140 | |||||
Foreign currency translation adjustments | 2 | — | 2 | (2 | ) | 2 | ||||||
Total comprehensive income | 142 | 94 | 45 | (139 | ) | 142 | ||||||
Comprehensive income attributable to noncontrolling interest | (10 | ) | — | (10 | ) | 10 | (10 | ) | ||||
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, Schedule of Cash Flows, Current Year | ' | |||||||||||
Condensed consolidating statements of cash flows | ||||||||||||
Six months ended June 30, 2014 | ||||||||||||
(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 | $ | 217 | 172 | 160 | — | 549 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (74 | ) | (1 | ) | 38 | (20 | ) | (57 | ) | |||
Expenditures for cable and satellite television distribution rights, net | — | (8 | ) | — | — | (8 | ) | |||||
Intercompany investing activities | 114 | 27 | — | (141 | ) | — | ||||||
Net cash provided by (used in) investing activities | 40 | 18 | 38 | (161 | ) | (65 | ) | |||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (1,414 | ) | — | (5 | ) | — | (1,419 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 554 | — | — | — | 554 | |||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | — | — | — | 999 | |||||||
Payment of debt origination fees | (12 | ) | — | — | — | (12 | ) | |||||
Other financing activities | (4 | ) | — | — | — | (4 | ) | |||||
Dividends paid to Liberty | (480 | ) | — | — | — | (480 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | |||||
Net short-term intercompany debt borrowings (repayments) | 65 | 65 | (130 | ) | — | — | ||||||
Intercompany financing activities | (25 | ) | (226 | ) | 90 | 161 | — | |||||
Net cash used in financing activities | (317 | ) | (161 | ) | (70 | ) | 161 | (387 | ) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (6 | ) | — | (6 | ) | |||||
Net (decrease) increase in cash and cash equivalents | (60 | ) | 29 | 122 | — | 91 | ||||||
Cash and cash equivalents, beginning of period | 78 | 133 | 246 | — | 457 | |||||||
Cash and cash equivalents, end of period | $ | 18 | 162 | 368 | — | 548 | ||||||
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Year | ' | |||||||||||
Condensed consolidating statements of cash flows - Adjusted | ||||||||||||
Six months ended June 30, 2013 | ||||||||||||
(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 | $ | 275 | 115 | 52 | — | 442 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (33 | ) | — | (42 | ) | — | (75 | ) | ||||
Expenditures for cable and satellite television distribution rights, net | — | (25 | ) | (1 | ) | — | (26 | ) | ||||
Changes in other noncurrent assets | 4 | — | (3 | ) | — | 1 | ||||||
Intercompany investing activities | 258 | 149 | — | (407 | ) | — | ||||||
Net cash provided by (used in) investing activities | 229 | 124 | (46 | ) | (407 | ) | (100 | ) | ||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (1,690 | ) | — | (5 | ) | — | (1,695 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 1,053 | — | — | — | 1,053 | |||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | |||||||
Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | |||||
Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | |||||
Other financing activities | 7 | — | — | — | 7 | |||||||
Dividends paid to Liberty | (765 | ) | — | — | — | (765 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | |||||
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_Details
Basis of Presentation (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
General business information | ' | ' |
Dividends paid to noncontrolling interest | ($25) | ($25) |
Live Programming - U.S. | ' | ' |
General business information | ' | ' |
Hours of distribution per day | '24 hours | ' |
Days per year of programming | '364 days | ' |
Live Programming - Japan | ' | ' |
General business information | ' | ' |
Hours of distribution per day | '24 hours | ' |
Distribution - Germany | ' | ' |
General business information | ' | ' |
Hours of distribution per day | '24 hours | ' |
Live Programming - Germany | ' | ' |
General business information | ' | ' |
Hours of distribution per day | '17 hours | ' |
Distribution - U.K. | ' | ' |
General business information | ' | ' |
Hours of distribution per day | '24 hours | ' |
Live Programming - U.K. | ' | ' |
General business information | ' | ' |
Hours of distribution per day | '17 hours | ' |
Live Programming - Italy | ' | ' |
General business information | ' | ' |
Hours of distribution per day | '17 hours | ' |
Recorded Programming - Italy | ' | ' |
General business information | ' | ' |
Hours of distribution per day | '7 hours | ' |
Live Programming - CNRS | ' | ' |
General business information | ' | ' |
Hours of distribution per day | '15 hours | ' |
Recorded Programming - CNRS | ' | ' |
General business information | ' | ' |
Hours of distribution per day | '9 hours | ' |
CNR Home Shopping Co., Ltd. | ' | ' |
General business information | ' | ' |
Equity method investment, ownership percentage | 49.00% | ' |
QVC-Japan | ' | ' |
General business information | ' | ' |
Investment owned, percent of net assets | 60.00% | ' |
Noncontrolling interest, ownership percentage by noncontrolling owners | 40.00% | ' |
HSN, Inc. | ' | ' |
General business information | ' | ' |
Parent ownership in equity investment | 38.00% | ' |
Cable_and_Satellite_Television2
Cable and Satellite Television Distribution Rights, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' |
Cable and satellite television distribution rights | $5,573 | ' | $5,573 | ' | $5,544 |
Less accumulated amortization | 2,330 | ' | 2,330 | ' | 2,208 |
Amortization | 112 | 107 | 223 | 211 | ' |
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 |
Less accumulated amortization | -1,794 | ' | -1,794 | ' | -1,700 |
Cable and satellite television distribution rights, net | 540 | ' | 540 | ' | 624 |
Amortization | $46 | $44 | $93 | $86 | ' |
Cable_and_Satellite_Television3
Cable and Satellite Television Distribution Rights, Net (Future Amortization Expense) (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
2015 | $270 |
2016 | 235 |
2017 | 135 |
2018 | 9 |
Cable and satellite television distribution rights | ' |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
Remainder of 2014 | 87 |
2015 | 168 |
2016 | 162 |
2017 | 111 |
2018 | $6 |
Goodwill_Details
Goodwill (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
Balance as of December 31, 2013 | $5,197 |
Exchange rate fluctuations | 13 |
Balance as of June 30, 2014 | 5,210 |
QVC-U.S. | ' |
Goodwill [Roll Forward] | ' |
Balance as of December 31, 2013 | 4,190 |
Exchange rate fluctuations | 0 |
Balance as of June 30, 2014 | 4,190 |
QVC-Japan | ' |
Goodwill [Roll Forward] | ' |
Balance as of December 31, 2013 | 288 |
Exchange rate fluctuations | 11 |
Balance as of June 30, 2014 | 299 |
QVC-Germany | ' |
Goodwill [Roll Forward] | ' |
Balance as of December 31, 2013 | 348 |
Exchange rate fluctuations | -3 |
Balance as of June 30, 2014 | 345 |
QVC-U.K. | ' |
Goodwill [Roll Forward] | ' |
Balance as of December 31, 2013 | 216 |
Exchange rate fluctuations | 6 |
Balance as of June 30, 2014 | 222 |
QVC-Italy | ' |
Goodwill [Roll Forward] | ' |
Balance as of December 31, 2013 | 155 |
Exchange rate fluctuations | -1 |
Balance as of June 30, 2014 | $154 |
Other_Intangible_Assets_Net_Ot
Other Intangible Assets, Net (Other Intangible Assets) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Gross cost | ' | ' | ' | ' | ' |
Purchased and internally developed software | $630 | ' | $630 | ' | $615 |
Affiliate and customer relationships | 2,451 | ' | 2,451 | ' | 2,450 |
Debt origination fees | 64 | ' | 64 | ' | 51 |
Other intangible assets (excluding goodwill), gross | 5,573 | ' | 5,573 | ' | 5,544 |
Accumulated amortization | ' | ' | ' | ' | ' |
Purchased and internally developed software | -423 | ' | -423 | ' | -393 |
Affiliate and customer relationships | -1,890 | ' | -1,890 | ' | -1,802 |
Debt origination fees | -17 | ' | -17 | ' | -13 |
Other intangible assets (excluding goodwill), accumulated amortization | -2,330 | ' | -2,330 | ' | -2,208 |
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 |
Other intangible assets (excluding goodwill), net | 3,243 | ' | 3,243 | ' | 3,336 |
Amortization of other intangible assets | $66 | $63 | $130 | $125 | ' |
Other_Intangible_Assets_Net_Fu
Other Intangible Assets, Net (Future Amortization Expense) (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
Remainder of 2014 | $146 |
2015 | 270 |
2016 | 235 |
2017 | 135 |
2018 | $9 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ' | ' |
Accounts payable non-trade | $188 | $323 |
Income taxes | 98 | 126 |
Accrued compensation and benefits | 96 | 98 |
Allowance for sales returns | 80 | 108 |
Accrued interest | 78 | 58 |
Deferred revenue | 73 | 73 |
Sales and other taxes | 53 | 79 |
Other | 77 | 95 |
Accrued liabilities | $743 | $960 |
LongTerm_Debt_Debt_Details
Long-Term Debt (Debt) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Debt and capital lease obligations | $3,948 | $3,813 |
Current portion of debt and capital lease obligations | -11 | -13 |
Long-term portion of debt and capital lease obligations | 3,937 | 3,800 |
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 |
7.375% Senior Secured Notes due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt and capital lease obligations | 500 | 500 |
5.125% Senior Secured Notes due 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt and capital lease obligations | 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 |
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 |
Senior secured credit facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt and capital lease obligations | 65 | 922 |
Capital lease obligations | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt and capital lease obligations | $73 | $80 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | Jun. 30, 2014 | Mar. 18, 2014 |
Debt Instrument [Line Items] | ' | ' |
Line of credit facility remaining borrowing capacity | 1,900,000,000 | ' |
Line of credit facility interest rate at period end | 1.90% | ' |
Debt weighted average interest rate | 5.50% | ' |
3.125% Senior Secured Notes due 2019, net of original issue discount | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, face amount | ' | 400,000,000 |
Debt instrument interest rate stated percentage | 3.13% | 3.13% |
Debt issuance price percentage | ' | 99.83% |
7.5% Senior Secured Notes due 2019, net of original issue discount | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate stated percentage | 7.50% | ' |
7.375% Senior Secured Notes due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate stated percentage | 7.38% | ' |
5.125% Senior Secured Notes due 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate stated percentage | 5.13% | ' |
4.375% Senior Secured Notes due 2023, net of original issue discount | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate stated percentage | 4.38% | ' |
4.85% Senior Secured Notes due 2024, net of original issue discount | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, face amount | ' | $600,000,000 |
Debt instrument interest rate stated percentage | 4.85% | 4.85% |
Debt issuance price percentage | ' | 99.93% |
5.95% Senior Secured Notes due 2043, net of original issue discount | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate stated percentage | 5.95% | ' |
Leases_and_Transponder_Service2
Leases and Transponder Service Agreements (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Capital transponders | ' | ' | ' | ' |
Remainder of 2014 | $7 | ' | $7 | ' |
2015 | 11 | ' | 11 | ' |
2016 | 11 | ' | 11 | ' |
2017 | 11 | ' | 11 | ' |
2018 | 12 | ' | 12 | ' |
Thereafter | 28 | ' | 28 | ' |
Total | 80 | ' | 80 | ' |
Operating leases | ' | ' | ' | ' |
Remainder of 2014 | 10 | ' | 10 | ' |
2015 | 15 | ' | 15 | ' |
2016 | 13 | ' | 13 | ' |
2017 | 10 | ' | 10 | ' |
2018 | 11 | ' | 11 | ' |
Thereafter | 101 | ' | 101 | ' |
Total | 160 | ' | 160 | ' |
Capital transponder monthly lease expense | 1 | ' | 1 | ' |
Capital leases income statement amortization expense | 3 | 3 | 6 | 6 |
Imputed interest on capital lease | 7 | ' | 7 | ' |
Operating leases rent expense net | $7 | $6 | $14 | $14 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Liberty | Liberty | |||||
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Income tax expense | ($83) | ($81) | ($157) | ($143) | ' | ' |
Effective income tax rate | 37.20% | ' | 37.50% | ' | ' | ' |
United States Federal Statutory Tax Rate | ' | ' | 35.00% | ' | ' | ' |
Current tax payments due to related parties | ' | ' | ' | ' | $22 | $78 |
Assets_and_Liabilities_Measure2
Assets and Liabilities Measured at Fair Value (Details) (Recurring, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash equivalents | $463 | $342 |
Long-term liabilities: | ' | ' |
Debt (note 6) | 4,071 | 3,783 |
Level 1 | ' | ' |
Current assets: | ' | ' |
Cash equivalents | 463 | 342 |
Level 2 | ' | ' |
Long-term liabilities: | ' | ' |
Debt (note 6) | $4,071 | $3,783 |
Information_about_QVCs_Operati2
Information about QVC's Operating Segments (Revenue and Adjusted OIBDA by Segment) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | $2,014 | $1,961 | $4,000 | $3,935 |
Adjusted OIBDA | 439 | 434 | 851 | 838 |
QVC-U.S. | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 1,352 | 1,312 | 2,657 | 2,609 |
Adjusted OIBDA | 325 | 320 | 626 | 611 |
QVC-Japan | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 223 | 260 | 457 | 516 |
Adjusted OIBDA | 43 | 57 | 90 | 111 |
QVC-Germany | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 227 | 207 | 477 | 457 |
Adjusted OIBDA | 40 | 35 | 79 | 78 |
QVC-U.K. | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 178 | 153 | 343 | 293 |
Adjusted OIBDA | 33 | 26 | 60 | 45 |
QVC-Italy | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 34 | 29 | 66 | 60 |
Adjusted OIBDA | ($2) | ($4) | ($4) | ($7) |
Information_about_QVCs_Operati3
Information about QVC's Operating Segments (Depreciation/Amortization by Segment) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation | $33 | $33 | $66 | $63 |
Amortization | 112 | 107 | 223 | 211 |
QVC-U.S. | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation | 14 | 14 | 27 | 27 |
Amortization | 99 | 91 | 192 | 179 |
QVC-Japan | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation | 4 | 5 | 9 | 8 |
Amortization | 2 | 2 | 4 | 4 |
QVC-Germany | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation | 8 | 8 | 16 | 16 |
Amortization | 8 | 9 | 19 | 18 |
QVC-U.K. | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation | 4 | 5 | 8 | 9 |
Amortization | 3 | 3 | 7 | 6 |
QVC-Italy | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation | 3 | 1 | 6 | 3 |
Amortization | $0 | $2 | $1 | $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 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | $12,667 | ' | $13,056 |
Net capital expenditures | 57 | 75 | 211 |
QVC-U.S. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 9,933 | ' | 10,322 |
Net capital expenditures | 38 | ' | 123 |
QVC-Japan | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 732 | ' | 732 |
Net capital expenditures | -1 | ' | 16 |
QVC-Germany | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 1,103 | ' | 1,109 |
Net capital expenditures | 4 | ' | 28 |
QVC-U.K. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 628 | ' | 613 |
Net capital expenditures | 6 | ' | 16 |
QVC-Italy | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 271 | ' | 280 |
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 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $1,076 | $1,106 |
QVC-U.S. | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 436 | 448 |
QVC-Japan | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 218 | 220 |
QVC-Germany | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 225 | 244 |
QVC-U.K. | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 129 | 129 |
QVC-Italy | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $68 | $65 |
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 | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Adjusted OIBDA | $439 | $434 | $851 | $838 |
Stockbbased compensation | -10 | -9 | -18 | -19 |
Depreciation and amortization | -145 | -140 | -289 | -274 |
Equity in losses of investee | -2 | -2 | -3 | -1 |
Gains on financial instruments | 0 | 3 | 0 | 15 |
Interest expense, net | -60 | -50 | -122 | -113 |
Foreign currency gain (loss) | 1 | 0 | 0 | -1 |
Loss on extinguishment of debt | 0 | -16 | 0 | -57 |
Income before income taxes | $223 | $220 | $419 | $388 |
Other_Comprehensive_Income_Acc
Other Comprehensive Income (Accumulated Other Comprehensive Income) (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' |
Beginning balance | $139 | $186 |
Other comprehensive loss attributable to QVC, Inc. stockholder | 15 | -88 |
Ending balance | $154 | $98 |
Other_Comprehensive_Income_Com
Other Comprehensive Income (Component of Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Foreign currency transaction and translation gain (loss) before tax | $2 | ($13) | $21 | ($129) |
Tax (expense) benefit from foreign currency translation gain (loss) | 0 | -3 | -3 | 22 |
Foreign currency translation adjustments, net-of-tax | $2 | ($16) | $18 | ($107) |
Subsequent_Events_Details
Subsequent Events (Details) (Liberty, USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Liberty | ' |
Subsequent Event [Line Items] | ' |
Subsequent event dividend to parent | $133 |
GuarantorNonGuarantor_Subsidia2
Guarantor/Non-Guarantor Subsidiary Financial Information (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Intercompany gain | $20 | ' | ' | ' |
Subsidiary guarantors ownership percentage | 100.00% | ' | 100.00% | ' |
Net revenue | 2,014 | 1,961 | 4,000 | 3,935 |
Cost of goods sold | 1,250 | 1,227 | 2,506 | 2,479 |
Operating | 180 | 171 | 358 | 344 |
Net cash provided by operating activities | ' | ' | 549 | 442 |
Net cash used in investing activities | ' | ' | -65 | -100 |
Net cash used in financing activities | ' | ' | -387 | -437 |
Parent company | ' | ' | ' | ' |
Net revenue | 1,368 | 1,326 | 2,692 | 2,640 |
Cost of goods sold | 850 | 836 | 1,692 | 1,679 |
Operating | 42 | 38 | 82 | 75 |
Net cash provided by operating activities | ' | ' | 217 | 275 |
Net cash used in investing activities | ' | ' | 40 | 229 |
Net cash used in financing activities | ' | ' | -317 | -571 |
Parent company | Adjustment | ' | ' | ' | ' |
Net revenue | ' | 58 | ' | 112 |
Cost of goods sold | ' | ' | ' | 11 |
Operating | ' | 9 | ' | 17 |
Net cash provided by operating activities | ' | ' | ' | 83 |
Net cash used in investing activities | ' | ' | ' | 34 |
Net cash used in financing activities | ' | ' | ' | 117 |
Non-guarantor subsidiaries | ' | ' | ' | ' |
Net revenue | 692 | 681 | 1,399 | 1,389 |
Cost of goods sold | 432 | 427 | 878 | 871 |
Operating | 89 | 85 | 181 | 176 |
Net cash provided by operating activities | ' | ' | 160 | 52 |
Net cash used in investing activities | ' | ' | 38 | -46 |
Net cash used in financing activities | ' | ' | -70 | -33 |
Non-guarantor subsidiaries | Adjustment | ' | ' | ' | ' |
Net cash used in financing activities | ' | ' | ' | $83 |
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 |
In Millions, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $548 | $457 | $416 | $540 |
Restricted cash | 14 | 14 | ' | ' |
Accounts receivable, net | 756 | 1,111 | ' | ' |
Inventories | 989 | 931 | ' | ' |
Deferred income taxes | 165 | 162 | ' | ' |
Prepaid expenses | 57 | 47 | ' | ' |
Total current assets | 2,529 | 2,722 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' |
Property and equipment, net | 1,076 | 1,106 | ' | ' |
Cable and satellite television distribution rights, net | 540 | 624 | ' | ' |
Goodwill | 5,210 | 5,197 | ' | ' |
Other intangible assets, net | 3,243 | 3,336 | ' | ' |
Other noncurrent assets | 69 | 71 | ' | ' |
Investments in subsidiaries | 0 | 0 | ' | ' |
Total assets | 12,667 | 13,056 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 11 | 13 | ' | ' |
Accounts payable-trade | 470 | 494 | ' | ' |
Accrued liabilities | 743 | 960 | ' | ' |
Intercompany accounts payable (receivable) | 0 | 0 | ' | ' |
Total current liabilities | 1,224 | 1,467 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 3,937 | 3,800 | ' | ' |
Deferred compensation | 14 | 14 | ' | ' |
Deferred income taxes | 1,223 | 1,326 | ' | ' |
Other long-term liabilities | 157 | 108 | ' | ' |
Total liabilities | 6,555 | 6,715 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' |
QVC, Inc. stockholder's equity | 5,996 | 6,222 | ' | ' |
Noncontrolling interest | 116 | 119 | ' | ' |
Total equity | 6,112 | 6,341 | ' | ' |
Total liabilities and equity | 12,667 | 13,056 | ' | ' |
Parent company | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 18 | 78 | 8 | 75 |
Restricted cash | 11 | 11 | ' | ' |
Accounts receivable, net | 490 | 816 | ' | ' |
Inventories | 725 | 684 | ' | ' |
Deferred income taxes | 147 | 146 | ' | ' |
Prepaid expenses | 28 | 20 | ' | ' |
Total current assets | 1,419 | 1,755 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' |
Property and equipment, net | 253 | 265 | ' | ' |
Cable and satellite television distribution rights, net | 0 | 0 | ' | ' |
Goodwill | 4,169 | 4,169 | ' | ' |
Other intangible assets, net | 1,092 | 1,128 | ' | ' |
Other noncurrent assets | 9 | 8 | ' | ' |
Investments in subsidiaries | 4,893 | 4,894 | ' | ' |
Total assets | 11,835 | 12,219 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 2 | 2 | ' | ' |
Accounts payable-trade | 275 | 336 | ' | ' |
Accrued liabilities | 150 | 393 | ' | ' |
Intercompany accounts payable (receivable) | 1,084 | 1,019 | ' | ' |
Total current liabilities | 1,511 | 1,750 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 3,886 | 3,745 | ' | ' |
Deferred compensation | 14 | 13 | ' | ' |
Deferred income taxes | 319 | 399 | ' | ' |
Other long-term liabilities | 109 | 90 | ' | ' |
Total liabilities | 5,839 | 5,997 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' |
QVC, Inc. stockholder's equity | 5,996 | 6,222 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | ' |
Total equity | 5,996 | 6,222 | ' | ' |
Total liabilities and equity | 11,835 | 12,219 | ' | ' |
Guarantor subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 162 | 133 | 164 | 165 |
Restricted cash | 0 | 0 | ' | ' |
Accounts receivable, net | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Prepaid expenses | 0 | 0 | ' | ' |
Total current assets | 162 | 133 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' |
Property and equipment, net | 66 | 67 | ' | ' |
Cable and satellite television distribution rights, net | 441 | 510 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangible assets, net | 2,049 | 2,050 | ' | ' |
Other noncurrent assets | 0 | 0 | ' | ' |
Investments in subsidiaries | 1,601 | 1,628 | ' | ' |
Total assets | 4,319 | 4,388 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 0 | 0 | ' | ' |
Accounts payable-trade | 0 | 0 | ' | ' |
Accrued liabilities | 86 | 96 | ' | ' |
Intercompany accounts payable (receivable) | -814 | -879 | ' | ' |
Total current liabilities | -728 | -783 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 0 | 0 | ' | ' |
Deferred compensation | 0 | 0 | ' | ' |
Deferred income taxes | 901 | 923 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Total liabilities | 173 | 140 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' |
QVC, Inc. stockholder's equity | 4,146 | 4,248 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | ' |
Total equity | 4,146 | 4,248 | ' | ' |
Total liabilities and equity | 4,319 | 4,388 | ' | ' |
Non-guarantor subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 368 | 246 | 244 | 300 |
Restricted cash | 3 | 3 | ' | ' |
Accounts receivable, net | 266 | 295 | ' | ' |
Inventories | 264 | 247 | ' | ' |
Deferred income taxes | 18 | 16 | ' | ' |
Prepaid expenses | 29 | 27 | ' | ' |
Total current assets | 948 | 834 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' |
Property and equipment, net | 757 | 774 | ' | ' |
Cable and satellite television distribution rights, net | 99 | 114 | ' | ' |
Goodwill | 1,041 | 1,028 | ' | ' |
Other intangible assets, net | 102 | 158 | ' | ' |
Other noncurrent assets | 60 | 63 | ' | ' |
Investments in subsidiaries | 0 | 0 | ' | ' |
Total assets | 3,007 | 2,971 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 9 | 11 | ' | ' |
Accounts payable-trade | 195 | 158 | ' | ' |
Accrued liabilities | 507 | 471 | ' | ' |
Intercompany accounts payable (receivable) | -270 | -140 | ' | ' |
Total current liabilities | 441 | 500 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 51 | 55 | ' | ' |
Deferred compensation | 0 | 1 | ' | ' |
Deferred income taxes | 3 | 4 | ' | ' |
Other long-term liabilities | 48 | 18 | ' | ' |
Total liabilities | 543 | 578 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' |
QVC, Inc. stockholder's equity | 2,348 | 2,274 | ' | ' |
Noncontrolling interest | 116 | 119 | ' | ' |
Total equity | 2,464 | 2,393 | ' | ' |
Total liabilities and equity | 3,007 | 2,971 | ' | ' |
Eliminations | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ' | ' |
Accounts receivable, net | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Prepaid expenses | 0 | 0 | ' | ' |
Total current assets | 0 | 0 | ' | ' |
Noncurrent assets: | ' | ' | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Cable and satellite television distribution rights, net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangible assets, net | 0 | 0 | ' | ' |
Other noncurrent assets | 0 | 0 | ' | ' |
Investments in subsidiaries | -6,494 | -6,522 | ' | ' |
Total assets | -6,494 | -6,522 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 0 | 0 | ' | ' |
Accounts payable-trade | 0 | 0 | ' | ' |
Accrued liabilities | 0 | 0 | ' | ' |
Intercompany accounts payable (receivable) | 0 | 0 | ' | ' |
Total current liabilities | 0 | 0 | ' | ' |
Noncurrent liabilities: | ' | ' | ' | ' |
Long-term portion of debt and capital lease obligations | 0 | 0 | ' | ' |
Deferred compensation | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Total liabilities | 0 | 0 | ' | ' |
QVC, Inc. stockholder's equity: | ' | ' | ' | ' |
QVC, Inc. stockholder's equity | -6,494 | -6,522 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | ' |
Total equity | -6,494 | -6,522 | ' | ' |
Total liabilities and equity | ($6,494) | ($6,522) | ' | ' |
GuarantorNonGuarantor_Subsidia4
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Operations) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net revenue | $2,014 | $1,961 | $4,000 | $3,935 |
Cost of goods sold | 1,250 | 1,227 | 2,506 | 2,479 |
Gross profit | 764 | 734 | 1,494 | 1,456 |
Operating expenses: | ' | ' | ' | ' |
Operating | 180 | 171 | 358 | 344 |
Selling, general and administrative, including stock-based compensation | 155 | 138 | 303 | 293 |
Depreciation | 33 | 33 | 66 | 63 |
Amortization | 112 | 107 | 223 | 211 |
Intercompany management expense (income) | 0 | 0 | 0 | 0 |
Operating expenses | 480 | 449 | 950 | 911 |
Operating income | 284 | 285 | 544 | 545 |
Other (expense) income: | ' | ' | ' | ' |
Equity in losses of investee | -2 | -2 | -3 | -1 |
Gains on financial instruments | 0 | 3 | 0 | 15 |
Interest expense, net | -60 | -50 | -122 | -113 |
Foreign currency gain (loss) | 1 | 0 | 0 | -1 |
Loss on extinguishment of debt | 0 | -16 | 0 | -57 |
Intercompany interest and other (expense) income | 0 | 0 | 0 | 0 |
Nonoperating income (expense) | -61 | -65 | -125 | -157 |
Income before income taxes | 223 | 220 | 419 | 388 |
Income tax expense | -83 | -81 | -157 | -143 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 140 | 139 | 262 | 245 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 |
Net income attributable to QVC, Inc. stockholder | 130 | 126 | 243 | 220 |
Parent company | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net revenue | 1,368 | 1,326 | 2,692 | 2,640 |
Cost of goods sold | 850 | 836 | 1,692 | 1,679 |
Gross profit | 518 | 490 | 1,000 | 961 |
Operating expenses: | ' | ' | ' | ' |
Operating | 42 | 38 | 82 | 75 |
Selling, general and administrative, including stock-based compensation | 243 | 227 | 466 | 463 |
Depreciation | 10 | 9 | 19 | 19 |
Amortization | 58 | 51 | 110 | 102 |
Intercompany management expense (income) | 20 | 15 | 40 | 32 |
Operating expenses | 373 | 340 | 717 | 691 |
Operating income | 145 | 150 | 283 | 270 |
Other (expense) income: | ' | ' | ' | ' |
Equity in losses of investee | 0 | 0 | 0 | 0 |
Gains on financial instruments | ' | 0 | ' | 12 |
Interest expense, net | -60 | -50 | -113 | -112 |
Foreign currency gain (loss) | -1 | -1 | -3 | -2 |
Loss on extinguishment of debt | ' | -16 | ' | -57 |
Intercompany interest and other (expense) income | -5 | -4 | -10 | -7 |
Nonoperating income (expense) | -66 | -71 | -126 | -166 |
Income before income taxes | 79 | 79 | 157 | 104 |
Income tax expense | -27 | -21 | -7 | -32 |
Equity in earnings of subsidiaries, net of tax | 88 | 81 | 112 | 173 |
Net income | 140 | 139 | 262 | 245 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 |
Net income attributable to QVC, Inc. stockholder | 130 | 126 | 243 | 220 |
Guarantor subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net revenue | 187 | 182 | 364 | 365 |
Cost of goods sold | 23 | 23 | 48 | 49 |
Gross profit | 164 | 159 | 316 | 316 |
Operating expenses: | ' | ' | ' | ' |
Operating | 49 | 48 | 95 | 93 |
Selling, general and administrative, including stock-based compensation | 1 | 0 | -1 | 0 |
Depreciation | 1 | 2 | 3 | 3 |
Amortization | 38 | 36 | 77 | 70 |
Intercompany management expense (income) | -5 | -4 | -8 | -7 |
Operating expenses | 84 | 82 | 166 | 159 |
Operating income | 80 | 77 | 150 | 157 |
Other (expense) income: | ' | ' | ' | ' |
Equity in losses of investee | 0 | 0 | 0 | 0 |
Gains on financial instruments | ' | 0 | ' | 0 |
Interest expense, net | 0 | -1 | 0 | -1 |
Foreign currency gain (loss) | 0 | 0 | 0 | -1 |
Loss on extinguishment of debt | ' | 0 | ' | 0 |
Intercompany interest and other (expense) income | 13 | 12 | 26 | 25 |
Nonoperating income (expense) | 13 | 11 | 26 | 23 |
Income before income taxes | 93 | 88 | 176 | 180 |
Income tax expense | -28 | -32 | -52 | -60 |
Equity in earnings of subsidiaries, net of tax | 29 | 11 | -19 | 26 |
Net income | 94 | 67 | 105 | 146 |
Less net income attributable to the noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to QVC, Inc. stockholder | 94 | 67 | 105 | 146 |
Non-guarantor subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net revenue | 692 | 681 | 1,399 | 1,389 |
Cost of goods sold | 432 | 427 | 878 | 871 |
Gross profit | 260 | 254 | 521 | 518 |
Operating expenses: | ' | ' | ' | ' |
Operating | 89 | 85 | 181 | 176 |
Selling, general and administrative, including stock-based compensation | 89 | 80 | 181 | 169 |
Depreciation | 22 | 22 | 44 | 41 |
Amortization | 16 | 20 | 36 | 39 |
Intercompany management expense (income) | -15 | -11 | -32 | -25 |
Operating expenses | 201 | 196 | 410 | 400 |
Operating income | 59 | 58 | 111 | 118 |
Other (expense) income: | ' | ' | ' | ' |
Equity in losses of investee | -2 | -2 | -3 | -1 |
Gains on financial instruments | ' | 3 | ' | 3 |
Interest expense, net | 0 | 1 | -9 | 0 |
Foreign currency gain (loss) | 2 | 1 | 3 | 2 |
Loss on extinguishment of debt | ' | 0 | ' | 0 |
Intercompany interest and other (expense) income | 12 | -8 | 4 | -18 |
Nonoperating income (expense) | 12 | -5 | -5 | -14 |
Income before income taxes | 71 | 53 | 106 | 104 |
Income tax expense | -28 | -28 | -98 | -51 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 43 | 25 | 8 | 53 |
Less net income attributable to the noncontrolling interest | -10 | -13 | -19 | -25 |
Net income attributable to QVC, Inc. stockholder | 33 | 12 | -11 | 28 |
Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net revenue | -233 | -228 | -455 | -459 |
Cost of goods sold | -55 | -59 | -112 | -120 |
Gross profit | -178 | -169 | -343 | -339 |
Operating expenses: | ' | ' | ' | ' |
Operating | 0 | 0 | 0 | 0 |
Selling, general and administrative, including stock-based compensation | -178 | -169 | -343 | -339 |
Depreciation | 0 | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 | 0 |
Intercompany management expense (income) | 0 | 0 | 0 | 0 |
Operating expenses | -178 | -169 | -343 | -339 |
Operating income | 0 | 0 | 0 | 0 |
Other (expense) income: | ' | ' | ' | ' |
Equity in losses of investee | 0 | 0 | 0 | 0 |
Gains on financial instruments | ' | 0 | ' | 0 |
Interest expense, net | 0 | 0 | 0 | 0 |
Foreign currency gain (loss) | 0 | 0 | 0 | 0 |
Loss on extinguishment of debt | ' | 0 | ' | 0 |
Intercompany interest and other (expense) income | -20 | 0 | -20 | 0 |
Nonoperating income (expense) | -20 | 0 | -20 | 0 |
Income before income taxes | -20 | 0 | -20 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | -117 | -92 | -93 | -199 |
Net income | -137 | -92 | -113 | -199 |
Less net income attributable to the noncontrolling interest | 10 | 13 | 19 | 25 |
Net income attributable to QVC, Inc. stockholder | ($127) | ($79) | ($94) | ($174) |
GuarantorNonGuarantor_Subsidia5
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | $140 | $139 | $262 | $245 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 |
Total comprehensive income (loss) | 142 | 123 | 280 | 138 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 |
Comprehensive income attributable to QVC, Inc. stockholder | 132 | 116 | 258 | 132 |
Parent company | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | 140 | 139 | 262 | 245 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 |
Total comprehensive income (loss) | 142 | 123 | 280 | 138 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 |
Comprehensive income attributable to QVC, Inc. stockholder | 132 | 116 | 258 | 132 |
Guarantor subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | 94 | 67 | 105 | 146 |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) | 94 | 67 | 105 | 146 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributable to QVC, Inc. stockholder | 94 | 67 | 105 | 146 |
Non-guarantor subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | 43 | 25 | 8 | 53 |
Foreign currency translation adjustments | 2 | -16 | 18 | -107 |
Total comprehensive income (loss) | 45 | 9 | 26 | -54 |
Comprehensive income attributable to noncontrolling interest | -10 | -7 | -22 | -6 |
Comprehensive income attributable to QVC, Inc. stockholder | 35 | 2 | 4 | -60 |
Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | -137 | -92 | -113 | -199 |
Foreign currency translation adjustments | -2 | 16 | -18 | 107 |
Total comprehensive income (loss) | -139 | -76 | -131 | -92 |
Comprehensive income attributable to noncontrolling interest | 10 | 7 | 22 | 6 |
Comprehensive income attributable to QVC, Inc. stockholder | ($129) | ($69) | ($109) | ($86) |
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 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash provided by operating activities | $549 | $442 | ' |
Investing activities: | ' | ' | ' |
Capital expenditures, net | -57 | -75 | -211 |
Expenditures for cable and satellite television distribution rights, net | -8 | -26 | ' |
Changes in other noncurrent assets | 0 | 1 | ' |
Intercompany investing activities | 0 | 0 | ' |
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 short-term intercompany debt borrowings (repayments) | 0 | 0 | ' |
Intercompany financing activities | 0 | 0 | ' |
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 | 540 |
Cash and cash equivalents, end of period | 548 | 416 | 457 |
Parent company | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash provided by operating activities | 217 | 275 | ' |
Investing activities: | ' | ' | ' |
Capital expenditures, net | -74 | -33 | ' |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 | ' |
Changes in other noncurrent assets | ' | 4 | ' |
Intercompany investing activities | 114 | 258 | ' |
Net cash used in investing activities | 40 | 229 | ' |
Financing activities: | ' | ' | ' |
Principal payments of debt and capital lease obligations | -1,414 | -1,690 | ' |
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 | ' | -46 | ' |
Other financing activities | -4 | 7 | ' |
Dividends paid to Liberty | -480 | -765 | ' |
Dividends paid to noncontrolling interest | 0 | 0 | ' |
Net short-term intercompany debt borrowings (repayments) | 65 | -21 | ' |
Intercompany financing activities | -25 | -143 | ' |
Net cash used in financing activities | -317 | -571 | ' |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | ' |
Net increase (decrease) in cash and cash equivalents | -60 | -67 | ' |
Cash and cash equivalents, beginning of period | 78 | 75 | 75 |
Cash and cash equivalents, end of period | 18 | 8 | ' |
Guarantor subsidiaries | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash provided by operating activities | 172 | 115 | ' |
Investing activities: | ' | ' | ' |
Capital expenditures, net | -1 | 0 | ' |
Expenditures for cable and satellite television distribution rights, net | -8 | -25 | ' |
Changes in other noncurrent assets | ' | 0 | ' |
Intercompany investing activities | 27 | 149 | ' |
Net cash used in investing activities | 18 | 124 | ' |
Financing activities: | ' | ' | ' |
Principal payments of debt and capital lease obligations | 0 | 0 | ' |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | ' |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | ' |
Payment of debt origination fees | 0 | 0 | ' |
Payment of bond premium fees | ' | 0 | ' |
Other financing activities | 0 | 0 | ' |
Dividends paid to Liberty | 0 | 0 | ' |
Dividends paid to noncontrolling interest | 0 | 0 | ' |
Net short-term intercompany debt borrowings (repayments) | 65 | 86 | ' |
Intercompany financing activities | -226 | -326 | ' |
Net cash used in financing activities | -161 | -240 | ' |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | ' |
Net increase (decrease) in cash and cash equivalents | 29 | -1 | ' |
Cash and cash equivalents, beginning of period | 133 | 165 | 165 |
Cash and cash equivalents, end of period | 162 | 164 | ' |
Non-guarantor subsidiaries | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash provided by operating activities | 160 | 52 | ' |
Investing activities: | ' | ' | ' |
Capital expenditures, net | 38 | -42 | ' |
Expenditures for cable and satellite television distribution rights, net | 0 | -1 | ' |
Changes in other noncurrent assets | ' | -3 | ' |
Intercompany investing activities | 0 | 0 | ' |
Net cash used in investing activities | 38 | -46 | ' |
Financing activities: | ' | ' | ' |
Principal payments of debt and capital lease obligations | -5 | -5 | ' |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | ' |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | ' |
Payment of debt origination fees | 0 | 0 | ' |
Payment of bond premium fees | ' | 0 | ' |
Other financing activities | 0 | 0 | ' |
Dividends paid to Liberty | 0 | 0 | ' |
Dividends paid to noncontrolling interest | -25 | -25 | ' |
Net short-term intercompany debt borrowings (repayments) | -130 | -65 | ' |
Intercompany financing activities | 90 | 62 | ' |
Net cash used in financing activities | -70 | -33 | ' |
Effect of foreign exchange rate changes on cash and cash equivalents | -6 | -29 | ' |
Net increase (decrease) in cash and cash equivalents | 122 | -56 | ' |
Cash and cash equivalents, beginning of period | 246 | 300 | 300 |
Cash and cash equivalents, end of period | 368 | 244 | ' |
Eliminations | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash provided by operating activities | 0 | 0 | ' |
Investing activities: | ' | ' | ' |
Capital expenditures, net | -20 | 0 | ' |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 | ' |
Changes in other noncurrent assets | ' | 0 | ' |
Intercompany investing activities | -141 | -407 | ' |
Net cash used in investing activities | -161 | -407 | ' |
Financing activities: | ' | ' | ' |
Principal payments of debt and capital lease obligations | 0 | 0 | ' |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | ' |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | ' |
Payment of debt origination fees | 0 | 0 | ' |
Payment of bond premium fees | ' | 0 | ' |
Other financing activities | 0 | 0 | ' |
Dividends paid to Liberty | 0 | 0 | ' |
Dividends paid to noncontrolling interest | 0 | 0 | ' |
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | ' |
Intercompany financing activities | 161 | 407 | ' |
Net cash used in financing activities | 161 | 407 | ' |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | ' |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ' |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 | ' |