Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Document Information [Abstract] | |
Entity Registrant Name | QVC INC |
Entity Central Index Key | 1254699 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 1 |
Document Type | 10-K |
Document Period End Date | 31-Dec-14 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Amendment Flag | FALSE |
Entity Current Reporting Status submitted electronically | Yes |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Public Float | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $347 | $457 |
Restricted cash | 12 | 14 |
Accounts receivable, less allowance for doubtful accounts of $91 million at December 31, 2014 and $83 million at December 31, 2013 | 1,196 | 1,111 |
Inventories | 882 | 931 |
Deferred income taxes | 210 | 162 |
Prepaid expenses | 50 | 47 |
Total current assets | 2,697 | 2,722 |
Noncurrent assets: | ||
Property and equipment, net of accumulated depreciation of $884 million at December 31, 2014 and $919 million at December 31, 2013 | 1,026 | 1,106 |
Cable and satellite television distribution rights, net | 461 | 624 |
Goodwill | 5,091 | 5,197 |
Other intangible assets, net | 3,143 | 3,336 |
Other noncurrent assets | 58 | 71 |
Total assets | 12,476 | 13,056 |
Current liabilities: | ||
Current portion of debt and capital lease obligations | 9 | 13 |
Accounts payable-trade | 629 | 494 |
Accrued liabilities | 885 | 960 |
Total current liabilities | 1,523 | 1,467 |
Noncurrent liabilities: | ||
Long-term portion of debt and capital lease obligations | 4,620 | 3,800 |
Deferred compensation | 17 | 14 |
Deferred income taxes | 1,121 | 1,326 |
Other long-term liabilities | 149 | 108 |
Total liabilities | 7,430 | 6,715 |
QVC, Inc. stockholder's equity: | ||
Common stock, $0.01 par value, 1 authorized share | 0 | 0 |
Additional paid-in capital | 6,787 | 6,703 |
Accumulated deficit | -1,805 | -620 |
Accumulated other comprehensive (loss) income | -39 | 139 |
Total QVC, Inc. stockholder's equity | 4,943 | 6,222 |
Noncontrolling interest | 103 | 119 |
Total equity | 5,046 | 6,341 |
Total liabilities and equity | $12,476 | $13,056 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Allowance for D/A | $91 | $83 |
Accumulated depreciation | $884 | $919 |
Common stock par value | $0.01 | $0.01 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net revenue | $8,801 | $8,623 | $8,516 |
Cost of goods sold | 5,547 | 5,465 | 5,419 |
Gross profit | 3,254 | 3,158 | 3,097 |
Operating expenses: | |||
Operating | 753 | 740 | 715 |
Selling, general and administrative, including stock-based compensation | 635 | 615 | 588 |
Depreciation | 135 | 127 | 126 |
Amortization | 452 | 431 | 400 |
Operating expenses | 1,975 | 1,913 | 1,829 |
Operating income | 1,279 | 1,245 | 1,268 |
Other (expense) income: | |||
Equity in losses of investee | -8 | -4 | -4 |
Gains on financial instruments | 0 | 15 | 48 |
Interest expense, net | -239 | -214 | -233 |
Foreign currency gain | 3 | 1 | 2 |
Loss on extinguishment of debt | -48 | -57 | 0 |
Nonoperating (expense) income | -292 | -259 | -187 |
Income before income taxes | 987 | 986 | 1,081 |
Income tax expense | -354 | -353 | -394 |
Net income | 633 | 633 | 687 |
Less net income attributable to the noncontrolling interest | -39 | -45 | -63 |
Net income attributable to QVC, Inc. stockholder | $594 | $588 | $624 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income Statement (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $633 | $633 | $687 |
Foreign currency translation adjustments | -191 | -72 | -27 |
Total comprehensive income | 442 | 561 | 660 |
Comprehensive income attributable to noncontrolling interest | -26 | -20 | -44 |
Comprehensive income attributable to QVC, Inc. stockholder | $416 | $541 | $616 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net income | $633,000,000 | $633,000,000 | $687,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in losses of investee | 8,000,000 | 4,000,000 | 4,000,000 |
Deferred income taxes | -202,000,000 | -108,000,000 | -134,000,000 |
Foreign currency gain | -3,000,000 | -1,000,000 | -2,000,000 |
Depreciation | 135,000,000 | 127,000,000 | 126,000,000 |
Amortization | 452,000,000 | 431,000,000 | 400,000,000 |
Change in fair value of financial instruments and noncash interest | 9,000,000 | -6,000,000 | -39,000,000 |
Loss on extinguishment of debt | 48,000,000 | 57,000,000 | 0 |
Stock-based compensation | 44,000,000 | 38,000,000 | 34,000,000 |
Change in other long-term liabilities | 47,000,000 | 3,000,000 | 2,000,000 |
Effects of changes in working capital items | 42,000,000 | -205,000,000 | 128,000,000 |
Net cash provided by operating activities | 1,213,000,000 | 973,000,000 | 1,206,000,000 |
Investing activities: | |||
Capital expenditures, net | -182,000,000 | -211,000,000 | -246,000,000 |
Expenditures for cable and satellite television distribution rights, net | -31,000,000 | -58,000,000 | -2,000,000 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | 0 | 0 | -95,000,000 |
Decreases in restricted cash | 2,000,000 | 1,000,000 | 2,000,000 |
Changes in other noncurrent assets | 0 | -2,000,000 | -3,000,000 |
Net cash used in investing activities | -211,000,000 | -270,000,000 | -344,000,000 |
Financing activities: | |||
Principal payments of debt and capital lease obligations | -3,049,000,000 | -2,387,000,000 | -1,246,000,000 |
Principal borrowings of debt from senior secured credit facility | 1,852,000,000 | 1,674,000,000 | 1,717,000,000 |
Proceeds from issuance of senior secured notes, net of original issue discount | 1,997,000,000 | 1,050,000,000 | 500,000,000 |
Payment of debt origination fees | -24,000,000 | -16,000,000 | -7,000,000 |
Payment of bond premium fees | -32,000,000 | -46,000,000 | 0 |
Other financing activities | -3,000,000 | 12,000,000 | 20,000,000 |
Dividends paid to Liberty | -1,765,000,000 | -1,005,000,000 | -1,817,000,000 |
Dividends paid to noncontrolling interest | -42,000,000 | -45,000,000 | -29,000,000 |
Net cash used in financing activities | -1,066,000,000 | -763,000,000 | -862,000,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | -46,000,000 | -23,000,000 | -20,000,000 |
Net decrease in cash and cash equivalents | -110,000,000 | -83,000,000 | -20,000,000 |
Cash and cash equivalents, beginning of period | 457,000,000 | 540,000,000 | 560,000,000 |
Cash and cash equivalents, end of period | 347,000,000 | 457,000,000 | 540,000,000 |
Effects of changes in working capital items: | |||
Increase in accounts receivable | -96,000,000 | -63,000,000 | -50,000,000 |
Decrease (increase) in inventories | 20,000,000 | -14,000,000 | 2,000,000 |
(Increase) decrease in prepaid expenses | -1,000,000 | -1,000,000 | 3,000,000 |
Increase (decrease) in accounts payable-trade | 172,000,000 | -121,000,000 | 74,000,000 |
(Decrease) increase in accrued liabilities and other | -53,000,000 | -6,000,000 | 99,000,000 |
Effects of changes in working capital items | 42,000,000 | -205,000,000 | 128,000,000 |
Supplemental cash flow information: | |||
Cash paid for taxes-to Liberty | 375,000,000 | 385,000,000 | 338,000,000 |
Cash paid for taxes-other | 98,000,000 | -156,000,000 | 128,000,000 |
Cash paid for interest | $211,000,000 | $206,000,000 | $215,000,000 |
Consolidated_Statement_of_Equi
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, Beginning at Dec. 31, 2011 | $8,019 | $0 | $6,644 | $1,052 | $194 | $129 |
Balance, Beginning (in shares) at Dec. 31, 2011 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 687 | 0 | 624 | 0 | 63 | |
Other comprehensive (expense) income: | ||||||
Foreign currency translation adjustments | -27 | 0 | 0 | -8 | -19 | |
Dividends paid to Liberty and noncontrolling interest and other | -1,819 | 0 | -1,790 | 0 | -29 | |
Impact of tax liability allocation and indemnification agreement with Liberty | -47 | 0 | -47 | 0 | 0 | |
Minimum withholding taxes on net share settlements of stock-based compensation | -33 | -33 | 0 | 0 | 0 | |
Excess tax benefit resulting from stock-based compensation | 20 | 20 | 0 | 0 | 0 | |
Stock-based compensation | 34 | 34 | 0 | 0 | 0 | |
Balance, Ending at Dec. 31, 2012 | 6,834 | 0 | 6,665 | -161 | 186 | 144 |
Balance, Ending (in shares) at Dec. 31, 2012 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 633 | 0 | 588 | 0 | 45 | |
Other comprehensive (expense) income: | ||||||
Foreign currency translation adjustments | -72 | 0 | 0 | -47 | -25 | |
Dividends paid to Liberty and noncontrolling interest and other | -1,047 | 0 | -1,002 | 0 | -45 | |
Impact of tax liability allocation and indemnification agreement with Liberty | -45 | 0 | -45 | 0 | 0 | |
Minimum withholding taxes on net share settlements of stock-based compensation | -12 | -12 | 0 | 0 | 0 | |
Excess tax benefit resulting from stock-based compensation | 12 | 12 | 0 | 0 | 0 | |
Stock-based compensation | 38 | 38 | 0 | 0 | 0 | |
Balance, Ending at Dec. 31, 2013 | 6,341 | 0 | 6,703 | -620 | 139 | 119 |
Balance, Ending (in shares) at Dec. 31, 2013 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 633 | 0 | 594 | 0 | 39 | |
Other comprehensive (expense) income: | ||||||
Foreign currency translation adjustments | -191 | 0 | 0 | -178 | -13 | |
Dividends paid to Liberty and noncontrolling interest and other | -1,821 | 0 | -1,779 | 0 | -42 | |
Impact of tax liability allocation and indemnification agreement with Liberty | 35 | 35 | 0 | 0 | 0 | |
Minimum withholding taxes on net share settlements of stock-based compensation | -11 | -11 | 0 | 0 | 0 | |
Excess tax benefit resulting from stock-based compensation | 16 | 16 | 0 | 0 | 0 | |
Stock-based compensation | 44 | 44 | 0 | 0 | 0 | |
Balance, Ending at Dec. 31, 2014 | $5,046 | $0 | $6,787 | ($1,805) | ($39) | $103 |
Balance, Ending (in shares) at Dec. 31, 2014 | 1 |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Basis of Presentation [Abstract] | |
Basis of presentation | Basis of Presentation |
QVC, Inc. and its consolidated subsidiaries ("QVC" or the "Company") 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 Germany ("QVC-Germany"), Japan ("QVC-Japan"), the United Kingdom ("QVC-U.K.") and Italy ("QVC-Italy"). QVC-Germany distributes its program 24 hours per day with 17 hours of live programming, QVC-Japan distributes live programming 24 hours per day, 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's Japanese operations are conducted through a joint venture with Mitsui & Co., LTD ("Mitsui") for a television and multimedia retailing service in Japan. QVC-Japan is owned 60% by the Company and 40% by Mitsui. The Company and Mitsui share in all profits and losses based on their respective ownership interests. During the years ended December 31, 2014, 2013 and 2012, QVC-Japan paid dividends to Mitsui of $42 million, $45 million and $29 million, respectively. | |
Additionally, the Company also has a joint venture with CNR Media Group, formerly known as 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 17 hours per day and recorded programming for seven hours per day. This joint venture is accounted for as an equity method investment recorded as equity in losses of investee in the consolidated statements of operations. | |
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 expected in the summer of 2015. | |
QVC is an indirect wholly owned subsidiary of Liberty Interactive Corporation ("Liberty," formerly known as Liberty Media Corporation). Liberty, which owns interests in a broad range of digital commerce businesses. On August 9, 2012, Liberty completed the recapitalization of its common stock into shares of the corresponding series of two new tracking stocks, Liberty Interactive (Nasdaq: LINTA, LINTB), of which QVC was a part of, and Liberty Ventures ("Ventures Group") (Nasdaq: LVNTA, LVNTB). On October 3, 2014, the Company declared and paid a dividend in cash to Liberty in the amount of $1 billion with funds drawn from the Company's credit facility. Additionally, Liberty reattributed from the Interactive Group to the Ventures Group $970 million in cash and certain of its digital commerce companies, including Backcountry.com, Inc., Bodybuilding.com, LLC, CommerceHub, Provide Commerce, Inc., Evite, Inc. and LMC Right Start, Inc. As a result of these transactions, the Interactive Group is now referred to as the QVC Group, which tracks the Company and Liberty's 38% equity interest in HSN, Inc. ("HSN"), one of the Company's two closest televised shopping competitors, along with cash and certain liabilities. The Liberty Interactive tracking stock trading symbol "LINTA" was changed to "QVCA" and the "LINTB" trading symbol to "QVCB," effective October 7, 2014. The foregoing transactions are referred to as the "2014 Reattribution." | |
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. |
Significant_Accounting_Policie
Significant Accounting Policies (Notes) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||
Significant accounting policies | Summary of Significant Accounting Policies | |||||||||||||
(a) Cash and cash equivalents | ||||||||||||||
All highly liquid investments purchased with an original maturity of three months or less are classified as cash equivalents. Cash equivalents were $245 million and $342 million at December 31, 2014 and 2013, respectively. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximates their fair values (Level 1). | ||||||||||||||
(b) Restricted cash | ||||||||||||||
Restricted cash at December 31, 2014 and 2013 primarily includes a cash deposit with a third party trustee that provides financial assurance that the Company will fulfill its obligations in relation to claims under its workers' compensation policy. | ||||||||||||||
(c) Accounts receivable | ||||||||||||||
A provision for customer bad debts is provided as a percentage of accounts receivable based on historical experience and is included within selling, general and administrative expense. A provision for noncustomer bad debt expense, related to amounts due from vendors for unsold and returned products, is provided based on an estimate of the probable expected losses and is included in cost of goods sold. | ||||||||||||||
(d) Inventories | ||||||||||||||
Inventories, consisting primarily of products held for sale, are stated at the lower of cost or market. Cost is determined by the average cost method, which approximates the first-in, first-out method. Assessments about the realizability of inventory require the Company to make judgments based on currently available information about the likely method of disposition including sales to individual customers, returns to product vendors, liquidations and the estimated recoverable values of each disposition category. | ||||||||||||||
(e) Property and equipment | ||||||||||||||
The costs of property and equipment are capitalized and depreciated over their estimated useful lives using the straight-line method beginning in the month of acquisition or in-service date. Transponders under capital leases are stated at the present value of minimum lease payments. When assets are sold or retired, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in net income. The costs of maintenance and repairs are charged to expense as incurred. | ||||||||||||||
The Company is party to several transponder capacity arrangements as a lessee, which are accounted for as capital leases. | ||||||||||||||
(f) Capitalized interest | ||||||||||||||
The Company capitalizes interest cost incurred on debt during the construction of major projects exceeding one year. Capitalized interest was not material to the consolidated financial statements for any periods presented. | ||||||||||||||
(g) Internally developed software | ||||||||||||||
Internal software development costs are capitalized in accordance with guidance on accounting for the costs of computer software developed or obtained for internal use, and are classified within other intangible assets in the consolidated balance sheets. The Company amortizes computer software and internal software development costs over an estimated useful life of approximately three years using the straight-line method. | ||||||||||||||
(h) Goodwill | ||||||||||||||
Goodwill represents the excess of costs over the fair value of the net assets of businesses acquired. Goodwill is not amortized. Goodwill is tested annually for impairment, and more frequently if events and circumstances indicated that the asset might be impaired. An impairment loss would be recognized to the extent that the carrying amount exceeded the reporting unit's fair value. | ||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||
(in millions) | QVC-U.S. | QVC-Germany | QVC-Japan | QVC-U.K. | QVC-Italy | Total | ||||||||
Balance as of December 31, 2012 | $ | 4,190 | 334 | 349 | 212 | 149 | 5,234 | |||||||
Exchange rate fluctuations | — | 14 | (61 | ) | 4 | 6 | (37 | ) | ||||||
Balance as of December 31, 2013 | 4,190 | 348 | 288 | 216 | 155 | 5,197 | ||||||||
Exchange rate fluctuations | — | (40 | ) | (35 | ) | (13 | ) | (18 | ) | (106 | ) | |||
Balance as of December 31, 2014 | $ | 4,190 | 308 | 253 | 203 | 137 | 5,091 | |||||||
QVC utilizes a qualitative assessment for determining whether step one of the goodwill impairment analysis is necessary. In evaluating goodwill on a qualitative basis, QVC reviews the business performance of each reporting unit and evaluates other relevant factors. The Company considers whether there were any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges and the legal environments, and how these factors might impact country specific performance in future periods. Based on the mentioned considerations and the fact that a quantitative analysis (the "Step 1 Test") had not been performed in several years, QVC considered it prudent to perform a Step 1 Test for each reporting unit for the year ended December 31, 2014. If the carrying value of a reporting unit exceeds its fair value, a second test is required to measure the impairment loss (the "Step 2 Test"). In the Step 2 Test, the fair value (Level 3) of the reporting unit is allocated to all of the assets and liabilities of the reporting unit with any residual value being allocated to goodwill. Any excess of the carrying value of the goodwill over this allocated amount is recorded as an impairment charge. For all reporting units, fair value exceeded carrying value; and as such, no Step 2 Test or impairment charge was recorded in 2014. | ||||||||||||||
Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company's valuation analysis are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. | ||||||||||||||
(i) Translation of foreign currencies | ||||||||||||||
Assets and liabilities of foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustments, net of applicable income taxes, are recorded as a component of accumulated other comprehensive income in equity. | ||||||||||||||
Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in the consolidated statements of operations as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions. | ||||||||||||||
(j) Revenue recognition | ||||||||||||||
The Company recognizes revenue at the time of delivery to customers. The revenue for shipments in-transit is recorded as deferred revenue. | ||||||||||||||
The Company's general policy is to allow customers to return merchandise for up to thirty days after the date of shipment. An allowance for returned merchandise is provided at the time revenue is recorded as a percentage of sales based on historical experience. The total reduction in net revenue due to returns for the years ended December 31, 2014, 2013 and 2012 aggregated to $2,023 million, $2,036 million and $1,965 million, respectively. | ||||||||||||||
A summary of activity in the allowance for sales returns, recorded on a net margin basis, was as follows: | ||||||||||||||
(in millions) | Balance | Additions- | Deductions | Balance | ||||||||||
beginning | charged | end of | ||||||||||||
of year | to earnings | year | ||||||||||||
2014 | $ | 106 | 1,253 | (1,250 | ) | 109 | ||||||||
2013 | 90 | 1,296 | (1,280 | ) | 106 | |||||||||
2012 | 85 | 1,222 | (1,217 | ) | 90 | |||||||||
The Company evaluates the criteria for reporting revenue gross as a principal versus net as an agent, in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, the Company is the primary obligor in the arrangement, has inventory risk, has latitude in establishing the selling price and selecting suppliers, and accordingly, records revenue gross. | ||||||||||||||
Sales and use taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from net revenue in the consolidated statements of operations. | ||||||||||||||
(k) Cost of goods sold | ||||||||||||||
Cost of goods sold primarily includes actual product cost, provision for obsolete inventory, buying allowances received from suppliers, shipping and handling costs and warehouse costs. | ||||||||||||||
(l) Advertising costs | ||||||||||||||
Advertising costs are expensed as incurred. Advertising costs amounted to $92 million, $89 million and $91 million for the years ended December 31, 2014, 2013 and 2012, respectively. These costs were included in selling, general and administrative expenses in the consolidated statements of operations. | ||||||||||||||
(m) Stock-based compensation | ||||||||||||||
As more fully described in note 10, the Company and Liberty have granted certain stock-based awards to employees of the Company. The Company measures the cost of employee services received in exchange for an award of equity instruments (such as stock options and restricted stock) based on the grant-date fair value of the award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the award). Stock-based compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations. | ||||||||||||||
(n) Impairment of long-lived assets | ||||||||||||||
The Company reviews long-lived assets, such as property and equipment, internally developed software and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Impairment charges are recognized as an acceleration of depreciation expense or amortization expense in the consolidated statement of operations. | ||||||||||||||
(o) Derivatives | ||||||||||||||
The Company accounts for derivatives and hedging activities in accordance with standards issued by the Financial Accounting Standards Board ("FASB"), which requires that all derivative instruments be recorded on the balance sheet at their respective fair values. Fair value is based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. For derivatives designated as hedges, changes in the fair value are either offset against the changes in fair value of the designated hedged item through earnings or recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. | ||||||||||||||
The Company generally enters into derivative contracts that it intends to designate as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. The ineffective portion of the change in fair value of a derivative instrument that qualifies as a cash flow hedge is reported in earnings. | ||||||||||||||
During the years ended December 31, 2009 and December 31, 2011, QVC entered into several interest rate swap arrangements to mitigate the interest rate risk associated with interest payments related to its variable rate debt. QVC assessed the effectiveness of its interest rate swaps using the hypothetical derivative method. During 2013 and 2012, QVC's elected interest terms did not effectively match the terms of the swap arrangements. As a result, the swaps did not qualify as cash flow hedges. Changes in fair value of these interest rate swaps were included in gains on financial instruments in the consolidated statements of operations. In March 2013, QVC's notional interest rate swaps of $3.1 billion expired. | ||||||||||||||
(p) Income taxes | ||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||||
When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other income (expense) in the consolidated statements of operations. | ||||||||||||||
(q) Noncontrolling interest | ||||||||||||||
The Company reports the noncontrolling interest of QVC-Japan within equity in the consolidated balance sheets and the amount of consolidated net income attributable to the noncontrolling interest is presented in the consolidated statements of operations. | ||||||||||||||
(r) Business acquisitions | ||||||||||||||
Acquired businesses are accounted for using the acquisition method of accounting, which requires the Company to record assets acquired and liabilities assumed at their respective fair values with the excess of the purchase price over estimated fair values recorded as goodwill. The assumptions made in determining the fair value of acquired assets and assumed liabilities as well as asset lives can materially impact the results of operations. The Company obtains information during due diligence and through other sources to establish respective fair values. Examples of factors and information that the Company uses to determine the fair values include tangible and intangible asset evaluations and appraisals and evaluations of existing contingencies and liabilities. If the initial valuation for an acquisition is incomplete by the end of the quarter in which the acquisition occurred, the Company will record a provisional estimate in the financial statements. The provisional estimate will be finalized as soon as information becomes available, but not later than one year from the acquisition date. | ||||||||||||||
(s) Investment in affiliate | ||||||||||||||
The Company holds an investment in China that is accounted for using the equity method. The equity method of accounting is used when we exercise significant influence, but do not have operating control, generally assumed to be 20%-50% ownership. Under the equity method, original investments are recorded at cost and adjusted by our share of undistributed earnings or losses of these companies. The excess of the Company's cost on its underlying interest in the net assets of the affiliate is allocated to identifiable intangible assets and goodwill. Equity investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. | ||||||||||||||
(t) Use of estimates in the preparation of consolidated financial statements | ||||||||||||||
The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, medical and other benefit related costs, depreciable lives of fixed assets, internally developed software, valuation of acquired intangible assets and goodwill, income taxes and stock-based compensation. | ||||||||||||||
(u) Recent accounting pronouncements | ||||||||||||||
On May 28, 2014, the FASB 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. | ||||||||||||||
(v) Reclassifications | ||||||||||||||
Certain prior period amounts have been reclassified to conform with current period presentation. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Receivables [Abstract] | ||||||||||
Accounts Receivable | Accounts Receivable | |||||||||
The Company has two credit programs, the QVC Easy-Pay Plan offered in the U.S., Germany, the U.K., and Italy (known as Q-Pay in Germany and Italy) and the QVC-U.S. revolving credit card program. The QVC Easy-Pay Plan permits customers to pay for items in two or more installments. When the QVC Easy-Pay Plan is offered by QVC and elected by the customer, the first installment is typically billed to the customer's credit card upon shipment. Generally, the customer's credit card is subsequently billed up to five additional monthly installments until the total purchase price of the products has been billed by the Company. | ||||||||||
In 2014, QVC-U.S. amended and restated its agreement with a large consumer financial services company (the "Bank") pursuant to which the Bank provides revolving credit directly to QVC's customers for the sole purpose of purchasing merchandise or services with a QVC branded credit card ("Q Card"). The Company receives a portion of the net economics of the credit card program. The Company cannot predict the extent to which customers will use the Q Card, nor the extent that they will make payments on their outstanding balances. The net amount of finance income resulting from credit card operations is included as a reduction of selling, general and administrative expenses and was $80 million, $63 million and $65 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
The Company also accepts major credit cards for its sales. Accounts receivable from major credit cards represents amounts owed to QVC from the credit card clearing houses for amounts billed but not yet collected. | ||||||||||
Accounts receivable consisted of the following: | ||||||||||
December 31, | ||||||||||
(in millions) | 2014 | 2013 | ||||||||
QVC Easy-Pay plan | $ | 1,015 | 915 | |||||||
Major credit card and other receivables | 272 | 279 | ||||||||
1,287 | 1,194 | |||||||||
Less allowance for doubtful accounts | (91 | ) | (83 | ) | ||||||
Accounts receivable, net | $ | 1,196 | 1,111 | |||||||
A summary of activity in the allowance for doubtful accounts was as follows (in millions): | ||||||||||
(in millions) | Balance | Additions- | Deductions- | Balance | ||||||
beginning | charged | write-offs | end of | |||||||
of year | to expense | year | ||||||||
2014 | $ | 83 | 92 | (84 | ) | 91 | ||||
2013 | 74 | 81 | (72 | ) | 83 | |||||
2012 | 79 | 75 | (80 | ) | 74 | |||||
The carrying value of accounts receivable, adjusted for the reserves described above, approximates fair value as of December 31, 2014, 2013 and 2012. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Property and Equipment, Net | Property and Equipment, Net | ||||||
Property and equipment consisted of the following: | |||||||
December 31, | Estimated | ||||||
useful | |||||||
(in millions) | 2014 | 2013 | life | ||||
Land | $ | 84 | 87 | N/A | |||
Buildings and improvements | 948 | 954 | 8Â -Â 20Â years | ||||
Furniture and other equipment | 417 | 429 | 2Â -Â 8Â years | ||||
Broadcast equipment | 105 | 107 | 3Â -Â 5Â years | ||||
Computer equipment | 145 | 204 | 2Â -Â 4Â years | ||||
Transponders (note 9) | 168 | 170 | 8 - 15 years | ||||
Projects in progress | 43 | 74 | N/A | ||||
1,910 | 2,025 | ||||||
Less accumulated depreciation | (884 | ) | (919 | ) | |||
Property and equipment, net | $ | 1,026 | 1,106 | ||||
Disposal of fully depreciated assets reduced property and equipment and accumulated depreciation $101 million with no impact to earnings for the year ended December 31, 2014. | |||||||
In 2014, QVC-Italy took ownership of its previously leased headquarters in Italy that includes television studios, broadcast facilities, administrative offices and a call center for approximately $20 million using exchange rates as of December 31, 2014. | |||||||
In 2013, QVC-Japan transitioned to its new headquarters in Japan that includes television studios, broadcast facilities, administrative offices and a call center. The total project cost was approximately $220 million. |
Cable_and_Satellite_Television
Cable and Satellite Television Distribution Rights, Net | 12 Months Ended | |||||
Dec. 31, 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: | ||||||
December 31, | ||||||
(in millions) | 2014 | 2013 | ||||
Cable and satellite television distribution rights | $ | 2,308 | 2,324 | |||
Less accumulated amortization | (1,847 | ) | (1,700 | ) | ||
Cable and satellite television distribution rights, net | $ | 461 | 624 | |||
The Company enters into affiliation agreements with cable and satellite television providers for carriage of the Company's shopping service, as well as for certain channel placement. If these cable and satellite affiliates were to add additional subscribers to the agreement through acquisition, the Company may be required to make additional payments. | ||||||
The Company's ability to continue to sell products to its customers is dependent on its ability to maintain and renew these affiliation agreements. In some cases, renewals are not agreed upon prior to the expiration of a given agreement while the programming continues to be carried by the relevant distributor without an effective agreement in place. The Company does not have distribution agreements with some of the cable operators that carry its programming. | ||||||
Cable and satellite television distribution rights are amortized using the straight-line method over the lives of the individual agreements. The remaining weighted average lives of the cable and satellite television distribution rights was approximately 2.9 years at December 31, 2014. Amortization expense for cable and satellite television distribution rights was $185 million, $177 million and $163 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||
As of December 31, 2014, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | ||||||
2015 | $ | 171 | ||||
2016 | 165 | |||||
2017 | 111 | |||||
2018 | 6 | |||||
2019 | 3 | |||||
The decrease in future amortization expense in 2018 is primarily due to the end of affiliation agreement terms for contracts in place at the time of the Liberty acquisition of QVC in 2003. | ||||||
In return for carrying our signals, each programming distributor in the U.S. receives an allocated portion, based upon market share, of up to 5% of the net sales of merchandise sold via the television programs and from certain Internet sales to customers located in the programming distributors' service areas. In Germany, Japan, the U.K. and Italy, programming distributors predominately receive an agreed-upon annual fee, a monthly fee per subscriber regardless of the net sales, a variable percentage of net sales or some combination of the above arrangements. The Company recorded expense related to these commissions of $299 million, $298 million and $296 million for the years ended December 31, 2014, 2013 and 2012, respectively, which is included as part of operating expenses in the consolidated statements of operations. |
Other_Intangible_Assets_Net
Other Intangible Assets, Net | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Other Intangible Assets [Abstract] | ||||||||||||||||
Intangible Assets Disclosure | Other Intangible Assets, Net | |||||||||||||||
Other intangible assets consisted of the following: | ||||||||||||||||
December 31, | Weighted average remaining life (years) | |||||||||||||||
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 | $ | 568 | (369 | ) | 199 | 615 | (393 | ) | 222 | 2.3 | ||||||
Affiliate and customer relationships | 2,428 | (1,958 | ) | 470 | 2,450 | (1,802 | ) | 648 | 2.8 | |||||||
Debt origination fees | 60 | (14 | ) | 46 | 51 | (13 | ) | 38 | 10 | |||||||
Trademarks (indefinite life) | 2,428 | — | 2,428 | 2,428 | — | 2,428 | — | |||||||||
$ | 5,484 | (2,341 | ) | 3,143 | 5,544 | (2,208 | ) | 3,336 | 3.1 | |||||||
Disposal of fully amortized assets reduced other intangible assets and accumulated amortization $80 million with no impact to earnings for the year ended December 31, 2014. | ||||||||||||||||
Amortization expense for other intangible assets was $267 million, $254 million and $237 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
As of December 31, 2014, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions): | ||||||||||||||||
2015 | $ | 279 | ||||||||||||||
2016 | 248 | |||||||||||||||
2017 | 154 | |||||||||||||||
2018 | 9 | |||||||||||||||
2019 | 8 | |||||||||||||||
The decrease in future amortization expense in 2018 is primarily due to the end of the useful lives of the affiliate and customer relationships in place at the time of the Liberty acquisition of QVC in 2003. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accrued Liabilities [Abstract] | ||||||
Accrued Liabilities | Accrued Liabilities | |||||
Accrued liabilities consisted of the following: | ||||||
December 31, | ||||||
(in millions) | 2014 | 2013 | ||||
Accounts payable non-trade | $ | 200 | 323 | |||
Income taxes | 137 | 126 | ||||
Accrued compensation and benefits | 110 | 98 | ||||
Allowance for sales returns | 109 | 106 | ||||
Deferred revenue | 85 | 73 | ||||
Sales and other taxes | 83 | 79 | ||||
Accrued interest | 79 | 58 | ||||
Other | 82 | 97 | ||||
$ | 885 | 960 | ||||
LongTerm_Debt_and_Interest_Rat
Long-Term Debt and Interest Rate Swap Arrangements | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Debt Disclosure [Abstract] | ||||||
Debt Disclosure | Long-Term Debt and Interest Rate Swap Arrangements | |||||
Long-term debt consisted of the following: | ||||||
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 | ||||
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 | — | ||||
4.45% Senior Secured Notes due 2025, net of original issue discount | 599 | — | ||||
5.45% Senior Secured Notes due 2034, net of original issue discount | 399 | — | ||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | 300 | ||||
Senior secured credit facility | 508 | 922 | ||||
Capital lease obligations | 74 | 80 | ||||
Total debt | 4,629 | 3,813 | ||||
Less current portion | (9 | ) | (13 | ) | ||
Long-term portion of debt and capital lease obligations | $ | 4,620 | 3,800 | |||
Senior Secured Notes | ||||||
All of QVC's senior secured notes are secured by the capital stock of QVC and certain of its subsidiaries and have equal priority to the senior secured credit facility. The interest on all of QVC's senior secured notes is payable semi-annually. | ||||||
(a) 7.125% Senior Secured Notes due 2017 | ||||||
On March 23, 2010, QVC issued $500 million principal amount of 7.125% Senior Secured Notes due 2017 at par (not presented within the above table due to zero balance at both December 31, 2014 and 2013). On March 18, 2013, $124 million of the 7.125% Senior Secured Notes due 2017 were tendered whereby holders of the 7.125% Senior Secured Notes due 2017 received consideration of $1,039.40 for each $1,000 of principal tendered. On April 17, 2013, QVC completed the redemption of the remaining $376 million principal amount of its 7.125% Senior Secured Notes due 2017, whereby holders received consideration of $1,035.63 for each $1,000 of principal tendered. | ||||||
(b) 3.125% Senior Secured Notes due 2019 | ||||||
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%. The net proceeds from the offerings of these notes were used to repay indebtedness under QVC’s senior secured credit facility and for working capital and other general corporate purposes. | ||||||
(c) 7.5% Senior Secured Notes due 2019 | ||||||
On September 25, 2009, QVC issued $1 billion principal amount of 7.5% Senior Secured Notes due 2019 at an issue price of 98.278%. On March 18, 2013, $231 million of the 7.5% Senior Secured Notes due 2019 were tendered whereby holders of the 7.5% Senior Secured Notes due 2019 received consideration of $1,120.00 for each $1,000 of principal tendered. On September 8, 2014, QVC completed the redemption of the remaining balance outstanding on these notes. Holders of the notes received consideration of $1,042.05 for each $1,000 of principal tendered. | ||||||
(d) 7.375% Senior Secured Notes due 2020 | ||||||
On March 23, 2010, QVC issued $500 million principal amount of 7.375% Senior Secured Notes due 2020 at par. | ||||||
(e) 5.125% Senior Secured Notes due 2022 | ||||||
On July 2, 2012, QVC issued $500 million principal amount of 5.125% Senior Secured Notes due 2022 at par. | ||||||
(f) 4.375% Senior Secured Notes due 2023 | ||||||
On March 18, 2013, QVC issued $750 million principal amount of 4.375% Senior Secured Notes due 2023 at an issue price of 99.968%. The net proceeds from the issuance of these instruments were used to reduce the outstanding principal under QVC's existing 7.125% Senior Secured Notes due 2017, the 7.5% Senior Secured Notes due 2019 and the senior secured credit facility, as well as for general corporate purposes. | ||||||
(g) 4.85% Senior Secured Notes due 2024 | ||||||
On March 18, 2014, QVC issued $600 million principal amount of 4.85% Senior Secured Notes due 2024 at an issue price of 99.927%. The net proceeds from the offerings of these notes were used to repay indebtedness under QVC’s senior secured credit facility and for working capital and other general corporate purposes. | ||||||
(h) 4.45% Senior Secured Notes due 2025 | ||||||
On August 21, 2014, QVC issued $600 million principal amount of 4.45% Senior Secured Notes due 2025 at an issue price of 99.860%. The net proceeds from the offerings of these notes were used for the redemption of QVC’s 7.5% Senior Secured Notes due 2019 on September 8, 2014 and for working capital and other general corporate purposes. | ||||||
(i) 5.45% Senior Secured Notes due 2034 | ||||||
On August 21, 2014, QVC issued $400 million principal amount of 5.45% Senior Secured Notes due 2034 at an issue price of 99.784%. The net proceeds from the offerings of these notes were used for the redemption of QVC’s 7.5% Senior Secured Notes due 2019 on September 8, 2014 and for working capital and other general corporate purposes. | ||||||
(j) 5.95% Senior Secured Notes due 2043 | ||||||
On March 18, 2013, QVC issued $300 million principal amount of 5.95% Senior Secured Notes due 2043 at an issue price of 99.973%. The net proceeds from the issuance of these instruments were used to reduce the outstanding principal of QVC's existing 7.125% Senior Secured Notes due 2017, the 7.5% Senior Secured Notes due 2019 and the senior secured credit facility, as well as for general corporate purposes. | ||||||
Senior Secured Credit Facility | ||||||
On March 1, 2013, QVC amended and restated its senior secured credit facility, which provides for a $2.0 billion revolving credit facility with a $250 million sub-limit for standby letters of credit and $1.0 billion of uncommitted incremental revolving loan commitments or incremental term loans. QVC may elect that the loans extended under the senior secured credit facility bear interest at a rate per annum equal to the ABR Rate or LIBOR, as each is defined in the senior secured credit facility agreement, plus a margin of 0.25% to 2.00% depending on various factors. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. Any amounts prepaid on the revolving credit facility may be reborrowed. Payment of loans may be accelerated following certain customary events of default. The senior secured credit facility is a multi-currency facility. The senior secured credit facility is secured by the capital stock of QVC. We had $1.5 billion available under the terms of the senior secured credit facility at December 31, 2014. The interest rate on the senior secured credit facility was 2.0% at December 31, 2014. | ||||||
The purpose of the amendment was to, among other things, extend the maturity of our senior secured credit facility to March 1, 2018 and lower the interest rate on borrowings. | ||||||
The senior secured credit facility contains certain affirmative and negative covenants, including certain restrictions with respect to, among other things: incurring additional indebtedness; creating liens on property or assets; making certain loans or investments; selling or disposing of assets; paying certain dividends and other restricted payments; dissolving, consolidating or merging; entering into certain transactions with affiliates; entering into sale or leaseback transactions; restricting subsidiary distributions; and limiting QVC's ratio of consolidated total debt to consolidated Adjusted OIBDA (Adjusted OIBDA is defined in note 15). | ||||||
Interest Rate Swap Arrangements | ||||||
During the years ended December 31, 2009 and December 31, 2011, QVC entered into several interest rate swap arrangements to mitigate the interest rate risk associated with interest payments related to its variable rate debt. QVC assessed the effectiveness of its interest rate swaps using the hypothetical derivative method. During 2013 and 2012, QVC's elected interest terms did not effectively match the terms of the swap arrangements. As a result, the swaps did not qualify as cash flow hedges. Changes in fair value of these interest rate swaps were included in gains on financial instruments in the consolidated statements of operations. In March 2013, QVC's notional interest rate swaps of $3.1 billion expired. | ||||||
Other Debt Related Information | ||||||
As a result of the refinancing transactions discussed above, we incurred an extinguishment loss of $48 million and $57 million for the years ended December 31, 2014 and 2013, respectively, recorded as loss on extinguishment of debt in the consolidated statements of operations. | ||||||
QVC was in compliance with all of its debt covenants at December 31, 2014. | ||||||
During the year, there were no significant changes to QVC's debt credit ratings. | ||||||
The weighted average rate applicable to all of the outstanding debt (excluding capital leases) was 4.7% as of December 31, 2014. | ||||||
At December 31, 2014 and 2013, outstanding letters of credit totaled $18 million and $26 million, respectively. |
Leases_and_Transponder_Service
Leases and Transponder Service Agreements | 12 Months Ended | |||||
Dec. 31, 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 December 31, 2014 consisted of the following: | ||||||
(in millions) | Capital transponders | Operating leases | ||||
2015 | $ | 11 | 15 | |||
2016 | 10 | 14 | ||||
2017 | 11 | 14 | ||||
2018 | 12 | 13 | ||||
2019 | 11 | 12 | ||||
Thereafter | 26 | 97 | ||||
Total | $ | 81 | 165 | |||
We distribute our television programs, via satellite and optical fiber, to cable television and direct-to-home satellite system operators for retransmission to their subscribers in the U.S., Germany, Japan, the U.K. and neighboring countries. We also transmit our television programs over digital terrestrial broadcast television to viewers throughout Italy, the U.K. and to viewers in certain geographic regions in the U.S and Germany. In the U.S., we uplink our analog and digital programming transmissions using a third party service. Both transmissions are uplinked to protected, non-preemptible transponders on U.S. satellites. "Protected" status means that, in the event of a transponder failure, our signal will be transferred to a spare transponder or, if none is available, to a preemptible transponder located on the same satellite or, in certain cases, to a transponder on another satellite owned by the same service provider if one is available at the time of the failure. "Non-preemptible" status means that, in the event of a transponder failure, our transponders cannot be preempted in favor of a user of a failed transponder, even another user with "protected status." Our international business units each obtain uplinking services from third parties and transmit their programming to non-preemptible transponders on international satellites. The service agreements in the U.S. expire in 2019 through 2020. Our transponder service agreements for our international transponders expire in 2015 through 2024. | ||||||
The Company has entered into eleven 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 $13 million, $12 million and $11 million for the years ended December 31, 2014, 2013 and 2012, respectively. Total future minimum capital lease payments of $81 million include $7 million of imputed interest. | ||||||
QVC's ability to continue to sell products to its customers is dependent on its ability to maintain uninterrupted broadcast. | ||||||
Expenses for operating leases, principally for data processing equipment and facilities and for satellite uplink service agreements, amounted to $24 million, $28 million and $31 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||
The Company entered into a 21 year operating lease for its QVC-U.K. headquarters that commenced in 2012, which is included in the future minimum operating lease payments in the above table. |
Stock_Options_and_Other_ShareB
Stock Options and Other Share-Based Awards | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||
Stock Options and Other Share-Based Payments | Stock Options and Other Share-Based Payments | |||||||||
QVC employees and officers have received stock options (the "Options") and restricted shares in LINTA ("Series A Liberty Interactive" now "QVCA;" refer to 2014 Reattribution below) and LVNTA ("Series A Liberty Ventures") common stock in accordance with the Liberty Interactive Corporation 2000 Incentive Plan, as amended from time to time; the Liberty Interactive Corporation 2007 Incentive Plan, as amended from time to time; the Liberty Interactive Corporation 2010 Incentive Plan, as amended from time to time; and the Liberty Interactive Corporation 2012 Incentive Plan, as amended from time to time (collectively, the "Liberty Incentive Plan"). | ||||||||||
(a) Stock options | ||||||||||
2012 Creation of Liberty Ventures Tracking Stock | ||||||||||
In August 2012, the LINTA stock was split into two tracking stocks, LINTA and LVNTA. The split was one LVNTA share for every 20 LINTA shares. Under the Liberty Incentive Plan, the Options have an exercise price equal to or greater than the fair market value of a share of LINTA and LVNTA common stock at the date of the grant. Under the Liberty Incentive Plan, the Options have a seven year term from the date of grant, with the Options generally becoming exercisable over four years from the date of grant, vesting in eight equal semi-annual traunches. | ||||||||||
For accounting purposes, the Options are classified as equity-based awards. | ||||||||||
Option Exchange | ||||||||||
During the fourth quarter of 2012, Liberty entered into an option exchange transaction that required a series of transactions with certain officers of the Company in order to recognize tax deductions associated with the stock options in that year versus future years (the "2012 Option Exchange"). On December 4, 2012 (the "Grant Date"), there was an acceleration of (i) each unvested in-the-money option to acquire shares of Liberty Interactive and (ii) each unvested in-the-money option to acquire shares of Series A Liberty Ventures common stock, in each case, held by certain officers (collectively, the "Eligible Optionholders"). Following this acceleration, also on the Grant Date, each Eligible Optionholder exercised, on a net settled basis, substantially all of his or her outstanding in-the-money vested and unvested options to acquire Series A Liberty Interactive shares and Series A Liberty Ventures shares (the "Eligible Options"), and: | ||||||||||
• | with respect to each vested Eligible Option, Liberty granted the Eligible Optionholder a vested new option with substantially the same terms and conditions as the exercised vested Eligible Option; | |||||||||
• | and with respect to each unvested Eligible Option: | |||||||||
â—¦ | the Eligible Optionholder sold to Liberty, for cash, the shares of Series A Liberty Interactive or Series A Liberty Ventures, as applicable, received upon exercise of such unvested Eligible Option and used the proceeds of that net sale to purchase from Liberty at that price an equal number of restricted Series A Liberty Interactive or Series A Liberty Ventures shares, as applicable, which have a vesting schedule identical to that of the exercised unvested Eligible Option; and | |||||||||
â—¦ | Liberty granted the Eligible Optionholder an unvested new option, with substantially the same terms and conditions as the exercised unvested Eligible Option, except that (a) the number of shares underlying the new option is equal to the number of shares underlying such exercised unvested Eligible Option less the number of restricted shares purchased from Liberty as described above and (b) the exercise price of the new option was the closing price per Series A Liberty Interactive or Series A Liberty Ventures share, as applicable, on The Nasdaq Global Select Market on the Grant Date. | |||||||||
This 2012 Option Exchange was considered a modification under ASC 718 - Stock Compensation and resulted in incremental compensation expense in 2012 and over the remaining vesting periods of the new unvested options and the restricted shares, and is included in unrecognized compensation. | ||||||||||
2014 Liberty Ventures 2 for 1 Stock Split | ||||||||||
On February 27, 2014, Liberty's board approved a two for one stock split of Series A and Series B Liberty Ventures common stock, effected by means of a dividend. The stock split was done in order to bring Liberty into compliance with a Nasdaq listing requirement regarding the minimum number of publicly held shares of the Series B Liberty Ventures common stock. In the stock split, a dividend was paid on April 11, 2014 of one share of Series A or Series B Liberty Ventures common stock to holders of each share of Series A or Series B Liberty Ventures common stock, respectively, held by them as of 5:00 pm, New York City time, on April 4, 2014. The stock split has been recorded retroactively for all periods presented for comparability purposes. | ||||||||||
TripAdvisor Holdings Spin-Off | ||||||||||
In August 2014, in connection with Liberty's spin-off (the "TripAdvisor Holdings Spin-Off") of its former wholly-owned subsidiary Liberty TripAdvisor Holdings, Inc. ("TripAdvisor Holdings") from Liberty Ventures, all outstanding awards with respect to Liberty Ventures common stock ("Liberty Ventures Award") were adjusted pursuant to the anti-dilution provisions of the incentive plans under which the equity awards were granted, such that a holder of a Liberty Ventures Award received: | ||||||||||
i. | An adjustment to the exercise price or base price, as applicable, and the number of shares subject to the Liberty Ventures Award (as so adjusted, an "Adjusted Liberty Ventures Award") and | |||||||||
ii. | A corresponding equity award relating to shares of TripAdvisor Holdings common stock (a "TripAdvisor Holdings Award"). | |||||||||
The exercise prices and number of shares subject to the Adjusted Liberty Ventures Award and the TripAdvisor Holdings Award were determined based on 1.) the exercise prices and number of shares subject to the Liberty Ventures Award, 2.) the pre-distribution trading price of the Liberty Ventures common stock and 3.) the post-distribution trading prices of Liberty Ventures common stock and TripAdvisor Holdings common stock, such that all of the pre-distribution intrinsic value of the Liberty Ventures Award was allocated between the Adjusted Liberty Ventures Award and the TripAdvisor Holdings Award. | ||||||||||
Following the TripAdvisor Holdings Spin-Off, employees of QVC hold awards in both Liberty Ventures common stock and TripAdvisor Holdings common stock. The compensation expense relating to employees of QVC is recorded at QVC. | ||||||||||
2014 Reattribution | ||||||||||
On October 3, 2014, Liberty completed a transaction whereby certain of its digital commerce businesses and cash were reattributed from the QVC Group to the Ventures Group. In return, Liberty distributed Ventures Group common stock to the QVC Group stockholders in the form of a dividend. This reattribution transaction resulted in an adjustment to the outstanding QVCA options, a corresponding LVNTA option award and a LVNTA restricted stock award using a methodology similar to the one described above for the TripAdvisor Holdings Spin-Off. The adjustments to the QVCA options, LVNTA options and LVNTA restricted stock have been reflected within each respective table within this note. | ||||||||||
A summary of the activity of the Liberty Incentive Plan with respect to the QVCA options granted to QVC employees and officers as of and during the year ended December 31, 2014 is presented below: | ||||||||||
Options | Weighted | Aggregate | Weighted average remaining | |||||||
average | intrinsic | life | ||||||||
exercise | value | (years) | ||||||||
price | (000s) | |||||||||
Outstanding at January 1, 2014 | 15,638,139 | $ | 17.01 | $ | 192,975 | 4.4 | ||||
Granted | 1,819,559 | 26.9 | ||||||||
Exercised | (3,784,111 | ) | 14.42 | |||||||
Forfeited | (1,007,491 | ) | 19.31 | |||||||
Net effect of 2014 Reattribution | 512,995 | 16.36 | ||||||||
Outstanding at December 31, 2014 | 13,179,091 | 17.34 | 159,203 | 3.7 | ||||||
Exercisable at December 31, 2014 | 7,325,843 | 14.94 | 106,078 | 2.9 | ||||||
A summary of the activity of the Liberty Incentive Plan with respect to the LVNTA options granted to QVC employees and officers as of and during the year ended December 31, 2014 is presented below: | ||||||||||
Options | Weighted average exercise | Aggregate intrinsic | Weighted average remaining | |||||||
price | value (000s) | life (years) | ||||||||
Outstanding at January 1, 2014 | 441,212 | $ | 29.4 | $ | 14,072 | 3.6 | ||||
Granted | — | — | ||||||||
Exercised | (106,709 | ) | 16.02 | |||||||
Forfeited | — | — | ||||||||
Adjustment for TripAdvisor Holdings Spin-Off | 6,736 | 14.86 | ||||||||
Net effect of 2014 Reattribution | 612,138 | 22.31 | ||||||||
Outstanding at December 31, 2014 | 953,377 | 19.51 | 17,361 | 2.8 | ||||||
Exercisable at December 31, 2014 | 597,523 | 19.7 | 10,767 | 2.6 | ||||||
Upon employee exercise of the Options, the exercise price is remitted to Liberty in exchange for the shares. The aggregate intrinsic value of all options exercised during the years ended December 31, 2014, 2013 and 2012 was $54 million, $37 million and $97 million, respectively. | ||||||||||
The weighted average fair value at date of grant of a QVCA Option granted, excluding the 2012 Option Exchange, during the years ended December 31, 2014, 2013 and 2012 was $11.16, $8.16 and $6.66, respectively. The weighted average fair value at date of grant of a QVCA 2012 Option Exchange option granted during the year ended December 31, 2012 was $6.94. The weighted average fair value at date of grant of a LVNTA Option granted, excluding the 2012 Option Exchange, during the year ended December 31, 2012 was $15.22. There were no LVNTA Options granted during the years ended December 31, 2014 and 2013. The weighted average fair value at date of grant of a LVNTA 2012 Option Exchange option granted during the year ended December 31, 2012 was $25.69. | ||||||||||
During the years ended December 31, 2014, 2013 and 2012, the fair value of each QVCA option was determined as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Expected volatility | 38.7 | % | 38.3 | % | 41.9 | % | ||||
Expected term (years) | 6.3 | 6.2 | 5.2 | |||||||
Risk free interest rate | 2 | % | 1.1 | % | 0.8 | % | ||||
Expected dividend yield | — | — | — | |||||||
During the years ended December 31, 2014, 2013 and 2012, the fair value of each LVNTA option was determined as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Expected volatility | — | % | — | % | 49.9 | % | ||||
Expected term (years) | — | — | 4.9 | |||||||
Risk free interest rate | — | % | — | % | 0.6 | % | ||||
Expected dividend yield | — | — | — | |||||||
Expected volatility is based on historical and implied volatilities of QVCA and LVNTA common stock over a period commensurate with the expected term of the options. The Company estimates the expected term of the options based on historical exercise and forfeiture data. The volatility used in the calculation for the options is based on the historical volatility of Liberty's stocks and the implied volatility of publicly traded Liberty options. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject options. | ||||||||||
The fair value of the options is recognized as expense over the requisite service period, net of estimated forfeitures. Based on QVC's historical experience of option pre-vesting cancellations, the Company has assumed an annualized forfeiture rate of 10% for all participants. We will record additional expense if the actual forfeiture rate is lower than estimated, and will record a recovery of prior expense if the actual forfeiture is higher than estimated. | ||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company recorded $36 million, $31 million and $29 million, respectively, of stock-based compensation expense related to the options. As of December 31, 2014, the total unrecognized compensation cost related to unvested options, net of estimated forfeitures, was approximately $34 million. Such amount will be recognized in the Company's consolidated statement of operations over a weighted average period of approximately 3.8 years. | ||||||||||
(b) Restricted stock plan | ||||||||||
A summary of the activity of the Liberty Incentive Plan with respect to the QVCA restricted shares granted to QVC employees and officers as of and during the year ended December 31, 2014 is presented below: | ||||||||||
Restricted Shares | Weighted average | |||||||||
grant date fair value | ||||||||||
Outstanding at January 1, 2014 | 1,214,462 | $ | 17.62 | |||||||
Granted | 328,887 | 24.86 | ||||||||
Vested | (460,069 | ) | 14.79 | |||||||
Forfeited | (48,154 | ) | 17.79 | |||||||
Outstanding at December 31, 2014 | 1,035,126 | 19.29 | ||||||||
A summary of the activity of the Liberty Incentive Plan with respect to the LVNTA restricted shares granted to QVC employees and officers as of and during the year ended December 31, 2014 is presented below: | ||||||||||
Restricted Shares | Weighted | |||||||||
Average | ||||||||||
Grant Date Fair Value | ||||||||||
Outstanding at January 1, 2014 | 64,158 | 19.34 | ||||||||
Granted | — | — | ||||||||
Vested | (34,718 | ) | 9.01 | |||||||
Forfeited | (2,445 | ) | 14.98 | |||||||
Net effect of 2014 Reattribution | 146,798 | 23.13 | ||||||||
Outstanding at December 31, 2014 | 173,793 | 22.13 | ||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company recorded $8 million, $7 million and $5 million, respectively, of stock-based compensation expense related to these shares. As of December 31, 2014, the total unrecognized compensation cost related to unvested restricted shares of common stock was approximately $14 million. Such amount will be recognized in the Company's consolidated statement of operations over a weighted average period of approximately 1.1 years. The aggregate fair value of all restricted shares of common stock that vested during the years ended December 31, 2014, 2013 and 2012 was $16 million, $15 million and $9 million, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Taxes | Income Taxes | |||||||
Income tax expense (benefit) consisted of the following: | ||||||||
Years ended December 31, | ||||||||
(in millions) | 2014 | 2013 | 2012 | |||||
Current: | ||||||||
U.S. federal | $ | 396 | 361 | 369 | ||||
State and local | 28 | 22 | 23 | |||||
Foreign jurisdiction | 132 | 78 | 136 | |||||
Total | 556 | 461 | 528 | |||||
Deferred: | ||||||||
U.S. federal | (182 | ) | (107 | ) | (121 | ) | ||
State and local | (15 | ) | (7 | ) | (7 | ) | ||
Foreign jurisdiction | (5 | ) | 6 | (6 | ) | |||
Total | (202 | ) | (108 | ) | (134 | ) | ||
Total income tax expense | $ | 354 | 353 | 394 | ||||
Pre-tax income was as follows: | ||||||||
Years ended December 31, | ||||||||
(in millions) | 2014 | 2013 | 2012 | |||||
QVC-U.S. | $ | 827 | 824 | 865 | ||||
QVC-Germany | 16 | 18 | 29 | |||||
QVC-Japan | 146 | 181 | 253 | |||||
QVC-U.K. | 19 | 1 | (17 | ) | ||||
QVC-Italy | (15 | ) | (38 | ) | (49 | ) | ||
QVC-France | (6 | ) | — | — | ||||
Consolidated QVC | $ | 987 | 986 | 1,081 | ||||
Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following: | ||||||||
Years ended December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Provision at statutory rate | 35 | Â % | 35 | Â % | 35 | Â % | ||
State income taxes, net of federal benefit | 0.9 | Â % | 0.7 | Â % | 1 | Â % | ||
Foreign taxes | 0.6 | Â % | 0.6 | Â % | 1.3 | Â % | ||
Foreign earnings repatriation | (0.3 | )% | (0.4 | )% | (1.1 | )% | ||
Valuation allowance | 0.2 |  % | — |  % | — |  % | ||
Permanent differences | (0.5 | )% | — |  % | 0.1 |  % | ||
Other, net | — |  % | (0.1 | )% | 0.1 |  % | ||
Total income tax expense | 35.9 | Â % | 35.8 | Â % | 36.4 | Â % | ||
The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: | ||||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Deferred tax assets: | ||||||||
Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts | $ | 33 | 32 | |||||
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 | 33 | 36 | ||||||
Allowance for sales returns | 41 | 39 | ||||||
Deferred compensation | 43 | 36 | ||||||
Unrecognized federal and state tax benefits | 63 | 29 | ||||||
Accrued liabilities | 82 | 25 | ||||||
Other | 27 | 36 | ||||||
Subtotal | 322 | 233 | ||||||
Valuation allowance | (3 | ) | (1 | ) | ||||
Total deferred tax assets | 319 | 232 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | (1,222 | ) | (1,349 | ) | ||||
Cumulative translation of foreign currencies | (8 | ) | (47 | ) | ||||
Total deferred tax liabilities | (1,230 | ) | (1,396 | ) | ||||
Net deferred tax liability | $ | (911 | ) | (1,164 | ) | |||
In the above table, valuation allowances exist due, in part, to the uncertainty of whether or not the benefit of certain foreign tax credits and benefits will ultimately be utilized for income tax purposes. | ||||||||
The Company has recognized tax benefits from the exercise of employee stock options that reduced taxes payable and were credited to additional paid-in capital. The amount of the tax benefits is reported in the consolidated statements of equity. | ||||||||
The Company is party to 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. These differences are related primarily to foreign tax credits recognized by QVC that are creditable under the Tax Agreement when and if utilized in Liberty’s consolidated tax return. The difference recorded during the year ended December 31, 2014, was a $29 million capital contribution related primarily to foreign tax credit carryovers being utilized in Liberty’s consolidated tax return in excess of those recognized by QVC during the year. The differences recorded during the years ended December 31, 2013 and 2012 were $45 million and $47 million in dividends, respectively, and related primarily to foreign tax credits recognized by QVC and not utilized in Liberty’s tax return during the respective tax years. The amounts of the tax-related balance due to Liberty at December 31, 2014 and 2013 were $52 million and $78 million, respectively, and are included in accrued liabilities in the consolidated balance sheets. | ||||||||
The Company has provided for U.S. income taxes on the undistributed earnings of foreign subsidiaries. The Company expects the amount of foreign tax credits available on those undistributed earnings to offset the U.S. income tax liability and to result in an incremental benefit related to the increased utilization of foreign tax credits. The amount of the U.S. income tax benefit recorded in the years ended December 31, 2014, 2013 and 2012 on those undistributed earnings was $3 million, $3 million and $12 million, respectively. | ||||||||
A reconciliation of the 2014 beginning and ending amount of the liability for unrecognized tax benefits is as follows: | ||||||||
(in millions) | ||||||||
Balance at January 1, 2014 | 89 | |||||||
Increases related to prior year tax positions | 27 | |||||||
Decreases related to prior year tax positions | (10 | ) | ||||||
Increases related to current year tax positions | 17 | |||||||
Balance at December 31, 2014 | 123 | |||||||
Included in the balance of unrecognized tax benefits at December 31, 2014 are potential benefits of $59 million (net of a $32 million federal tax effect) that, if recognized, would affect the effective rate on income from continuing operations. | ||||||||
The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other income (expense) in the consolidated statements of operations. The Company did not have a material amount of interest accrued related to unrecognized tax benefits or tax penalties. | ||||||||
The Company has tax positions for which the amount of related unrecognized tax benefits could change during 2015. These include nonfederal transfer pricing and other tax issues. The amount of unrecognized tax benefits related to these issues could have a net decrease of $23 million in 2015 as a result of potential settlements, lapsing of statute of limitations and revisions of settlement estimates. | ||||||||
The Company participates in a consolidated federal return filing with Liberty. As of December 31, 2014, the Company's tax years through 2010 are closed for federal income tax purposes, and the IRS has completed its examination of the Company's 2011, 2012 and 2013 tax years. The Company's 2014 tax year is being examined currently as part of the Liberty consolidated return under the IRS's Compliance Assurance Process ("CAP") program. The Company, or one of its subsidiaries, files income tax returns in various states and foreign jurisdictions. As of December 31, 2014, the Company, or one of its subsidiaries, was under examination in the states of California, Minnesota, New York, Pennsylvania and Virgina as well as in Germany, Italy and the U.K. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 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. |
Business_Acquisitions_and_Inve
Business Acquisitions and Investments in Affiliates (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Business acquisitions and investments in affiliates [Abstract] | |
Equity method investments and joint ventures disclosure | In 2012, the Company acquired all of the outstanding shares of Send the Trend, Inc., a provider of personalization software, and acquired substantially all of the assets of Oodle, Inc., a social media technology platform provider. |
On July 4, 2012, the Company entered into a joint venture with CNR Media Group, a limited liability company, owned by CNR for a 49% interest in a CNR subsidiary, CNRS. The CNRS joint venture is accounted for as an equity method investment as a component of other noncurrent assets on the consolidated balance sheets and equity in losses of investee in the consolidated statements of operations. CNRS operates a retailing business in China through a televised shopping channel with an associated website. CNRS is headquartered in Beijing, China. The joint venture's strategy is to combine CNRS' existing knowledge of the digital shopping market and consumers in China with QVC's global experience and know-how in multimedia retailing. | |
The aggregate purchase price for these business acquisitions and the investment in affiliate was $95 million. |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value | 12 Months Ended | |||||||||
Dec. 31, 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 December 31, 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 | $ | 245 | 245 | — | — | |||||
Long-term liabilities: | ||||||||||
Debt (note 8) | 4,626 | — | 4,626 | — | ||||||
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 8) | 3,783 | — | 3,783 | — | ||||||
The majority of the Company's Level 2 financial 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 | 12 Months Ended | |||||||||||||
Dec. 31, 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 identified six reportable operating segments: the United States, Germany, Japan, the United Kingdom, Italy and France. | ||||||||||||||
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 | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | ||||||||
revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | |||||||||
QVC-U.S. | $ | 6,055 | 1,429 | 5,844 | 1,352 | 5,585 | 1,292 | |||||||
QVC-Germany | 970 | 174 | 971 | 173 | 956 | 179 | ||||||||
QVC-Japan | 908 | 176 | 1,024 | 212 | 1,247 | 279 | ||||||||
QVC-U.K. | 730 | 141 | 657 | 118 | 641 | 104 | ||||||||
QVC-Italy | 138 | (4 | ) | 127 | (14 | ) | 87 | (26 | ) | |||||
QVC-France | — | (6 | ) | — | — | — | — | |||||||
Consolidated QVC | $ | 8,801 | 1,910 | 8,623 | 1,841 | 8,516 | 1,828 | |||||||
Net revenue amounts by product category are not available from our general purpose financial statements. | ||||||||||||||
Other information | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | ||||||||
QVC-U.S. | $ | 56 | 391 | 55 | 362 | 51 | 338 | |||||||
QVC-Germany | 33 | 36 | 30 | 38 | 31 | 33 | ||||||||
QVC-Japan | 19 | 9 | 23 | 9 | 16 | 10 | ||||||||
QVC-U.K. | 16 | 14 | 12 | 14 | 21 | 12 | ||||||||
QVC-Italy | 11 | 2 | 7 | 8 | 7 | 7 | ||||||||
QVC-France | — | — | — | — | — | — | ||||||||
Consolidated QVC | $ | 135 | 452 | 127 | 431 | 126 | 400 | |||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
(in millions) | Total | Capital | Total | Capital | ||||||||||
assets | expenditures, net | assets | expenditures, net | |||||||||||
QVC-U.S. | $ | 10,133 | 141 | 10,322 | 123 | |||||||||
QVC-Germany | 915 | 10 | 1,109 | 28 | ||||||||||
QVC-Japan | 644 | 2 | 732 | 16 | ||||||||||
QVC-U.K. | 537 | 16 | 613 | 16 | ||||||||||
QVC-Italy | 245 | 12 | 280 | 28 | ||||||||||
QVC-France | 2 | 1 | — | — | ||||||||||
Consolidated QVC | $ | 12,476 | 182 | 13,056 | 211 | |||||||||
Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | ||||||||||||||
December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||
QVC-U.S. | $ | 463 | 448 | |||||||||||
QVC-Germany | 209 | 244 | ||||||||||||
QVC-Japan | 176 | 220 | ||||||||||||
QVC-U.K. | 120 | 129 | ||||||||||||
QVC-Italy | 57 | 65 | ||||||||||||
QVC-France | 1 | — | ||||||||||||
Consolidated QVC | $ | 1,026 | 1,106 | |||||||||||
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | ||||||||||||||
Years ended December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||
Adjusted OIBDA | $ | 1,910 | 1,841 | 1,828 | ||||||||||
Stock-based compensation | (44 | ) | (38 | ) | (34 | ) | ||||||||
Depreciation and amortization | (587 | ) | (558 | ) | (526 | ) | ||||||||
Equity in losses of investee | (8 | ) | (4 | ) | (4 | ) | ||||||||
Gains on financial instruments | — | 15 | 48 | |||||||||||
Interest expense, net | (239 | ) | (214 | ) | (233 | ) | ||||||||
Foreign currency gain | 3 | 1 | 2 | |||||||||||
Loss on extinguishment of debt | (48 | ) | (57 | ) | — | |||||||||
Income before income taxes | $ | 987 | 986 | 1,081 | ||||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Comprehensive Income (Loss) | Other Comprehensive Income (Loss) | |||||||
The change in the component of accumulated other comprehensive income (loss), net of taxes ("AOCI"), is summarized as follows: | ||||||||
(in millions) | Foreign currency translation adjustments | AOCI | ||||||
Balance at January 1, 2012 | $ | 194 | 194 | |||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (8 | ) | (8 | ) | ||||
Balance at December 31, 2012 | 186 | 186 | ||||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (47 | ) | (47 | ) | ||||
Balance at December 31, 2013 | 139 | 139 | ||||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (178 | ) | (178 | ) | ||||
Balance at December 31, 2014 | (39 | ) | (39 | ) | ||||
The component of other comprehensive income is reflected in QVC's consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive income: | ||||||||
(in millions) | Before-tax amount | Tax (expense) benefit | Net-of-tax amount | |||||
Year ended December 31, 2014: | ||||||||
Foreign currency translation adjustments | $ | (240 | ) | 49 | (191 | ) | ||
Other comprehensive loss | (240 | ) | 49 | (191 | ) | |||
Year ended December 31, 2013: | ||||||||
Foreign currency translation adjustments | $ | (64 | ) | (8 | ) | (72 | ) | |
Other comprehensive loss | (64 | ) | (8 | ) | (72 | ) | ||
Year ended December 31, 2012: | ||||||||
Foreign currency translation adjustments | $ | (48 | ) | 21 | (27 | ) | ||
Other comprehensive loss | (48 | ) | 21 | (27 | ) | |||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans |
In certain markets, QVC sponsors defined contribution plans, which provide employees an opportunity to make contributions to a trust for investment in a variety of securities. Generally, the Company makes matching contributions to the plans based on a percentage of the amount contributed by employees. The Company's cash contributions to the plans were $23 million, $19 million and $16 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event |
QVC declared and paid dividends to Liberty in the amount of $58 million subsequent to December 31, 2014 |
GuarantorNonGuarantor_Subsidia
Guarantor/Non-Guarantor Subsidiary Financial Information | 12 Months Ended | |||||||||||
Dec. 31, 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 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 consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the Company's consolidated financial statements. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, such as management fees, royalty revenue and expense, interest income and expense and gains on intercompany asset transfers. During 2014, the Company revised the presentation of intercompany management expense (income) and prior period amounts have been reclassified to conform with current period presentation. 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 year ended December 31, 2014, an intangible asset held by certain non-guarantor subsidiaries was sold to QVC, Inc. resulting in a gain of $20 million reflected in intercompany interest and other income for the non-guarantor subsidiaries and also included in equity in earnings of subsidiaries for the subsidiary guarantors. The gain is eliminated in the eliminations column. The impact of these earnings has been eliminated in the presentation of intangible assets and equity in earnings of subsidiaries of the parent company. | ||||||||||||
The subsidiary guarantors are 100% owned by the Company. All guarantees are full and unconditional and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its U.S. subsidiaries, including the guarantors, by dividend or loan. The Company has not presented separate notes and other disclosures concerning the subsidiary guarantors as the Company has determined that such material information is available in the notes to the Company's consolidated financial statements. | ||||||||||||
Consolidating Balance Sheets | ||||||||||||
December 31, 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 | $ | 2 | 123 | 222 | — | 347 | ||||||
Restricted cash | 10 | — | 2 | — | 12 | |||||||
Accounts receivable, net | 909 | — | 287 | — | 1,196 | |||||||
Inventories | 680 | — | 202 | — | 882 | |||||||
Deferred income taxes | 192 | — | 18 | — | 210 | |||||||
Prepaid expenses | 25 | — | 25 | — | 50 | |||||||
Total current assets | 1,818 | 123 | 756 | — | 2,697 | |||||||
Property and equipment, net | 273 | 68 | 685 | — | 1,026 | |||||||
Cable and satellite television distribution rights, net | — | 388 | 73 | — | 461 | |||||||
Goodwill | 4,184 | — | 907 | — | 5,091 | |||||||
Other intangible assets, net | 1,023 | 2,051 | 69 | — | 3,143 | |||||||
Other noncurrent assets | 1 | — | 57 | — | 58 | |||||||
Investments in subsidiaries | 4,681 | 1,386 | — | (6,067 | ) | — | ||||||
Total assets | $ | 11,980 | 4,016 | 2,547 | (6,067 | ) | 12,476 | |||||
Liabilities and equity | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 7 | — | 9 | ||||||
Accounts payable-trade | 420 | — | 209 | — | 629 | |||||||
Accrued liabilities | 282 | 143 | 460 | — | 885 | |||||||
Intercompany accounts payable (receivable) | 1,384 | (921 | ) | (463 | ) | — | — | |||||
Total current liabilities | 2,088 | (778 | ) | 213 | — | 1,523 | ||||||
Long-term portion of debt and capital lease obligations | 4,565 | — | 55 | — | 4,620 | |||||||
Deferred compensation | 16 | — | 1 | — | 17 | |||||||
Deferred income taxes | 269 | 877 | (25 | ) | — | 1,121 | ||||||
Other long-term liabilities | 99 | — | 50 | — | 149 | |||||||
Total liabilities | 7,037 | 99 | 294 | — | 7,430 | |||||||
Equity: | ||||||||||||
QVC, Inc. stockholder's equity | 4,943 | 3,917 | 2,150 | (6,067 | ) | 4,943 | ||||||
Noncontrolling interest | — | — | 103 | — | 103 | |||||||
Total equity | 4,943 | 3,917 | 2,253 | (6,067 | ) | 5,046 | ||||||
Total liabilities and equity | $ | 11,980 | 4,016 | 2,547 | (6,067 | ) | 12,476 | |||||
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 | |||||
Consolidating Statements of Operations | ||||||||||||
Year ended December 31, 2014 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 6,198 | 920 | 2,992 | (1,309 | ) | 8,801 | |||||
Cost of goods sold | 3,907 | 108 | 1,807 | (275 | ) | 5,547 | ||||||
Gross profit | 2,291 | 812 | 1,185 | (1,034 | ) | 3,254 | ||||||
Operating expenses: | ||||||||||||
Operating | 343 | 269 | 376 | (235 | ) | 753 | ||||||
Selling, general and administrative, including stock-based compensation | 1,081 | 1 | 352 | (799 | ) | 635 | ||||||
Depreciation | 39 | 5 | 91 | — | 135 | |||||||
Amortization | 223 | 153 | 76 | — | 452 | |||||||
1,686 | 428 | 895 | (1,034 | ) | 1,975 | |||||||
Operating income | 605 | 384 | 290 | — | 1,279 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (8 | ) | — | (8 | ) | |||||
Interest expense, net | (230 | ) | — | (9 | ) | — | (239 | ) | ||||
Foreign currency gain (loss) | 10 | (3 | ) | (4 | ) | — | 3 | |||||
Loss on extinguishment of debt | (48 | ) | — | — | — | (48 | ) | |||||
Intercompany interest and other (expense) income | (22 | ) | 51 | (9 | ) | (20 | ) | — | ||||
(290 | ) | 48 | (30 | ) | (20 | ) | (292 | ) | ||||
Income before income taxes | 315 | 432 | 260 | (20 | ) | 987 | ||||||
Income tax expense | (73 | ) | (135 | ) | (146 | ) | — | (354 | ) | |||
Equity in earnings of subsidiaries, net of tax | 391 | 25 | — | (416 | ) | — | ||||||
Net income | 633 | 322 | 114 | (436 | ) | 633 | ||||||
Less net income attributable to the noncontrolling interest | (39 | ) | — | (39 | ) | 39 | (39 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 594 | 322 | 75 | (397 | ) | 594 | |||||
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. | ||||||||||||
Consolidating Statements of Operations | ||||||||||||
Year ended December 31, 2013 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 5,979 | 893 | 2,977 | (1,226 | ) | 8,623 | |||||
Cost of goods sold | 3,804 | 107 | 1,831 | (277 | ) | 5,465 | ||||||
Gross profit | 2,175 | 786 | 1,146 | (949 | ) | 3,158 | ||||||
Operating expenses: | ||||||||||||
Operating | 283 | 267 | 370 | (180 | ) | 740 | ||||||
Selling, general and administrative, including stock-based compensation | 1,028 | — | 356 | (769 | ) | 615 | ||||||
Depreciation | 38 | 6 | 83 | — | 127 | |||||||
Amortization | 204 | 146 | 81 | — | 431 | |||||||
1,553 | 419 | 890 | (949 | ) | 1,913 | |||||||
Operating income | 622 | 367 | 256 | — | 1,245 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | |||||
Gains on financial instruments | 12 | — | 3 | — | 15 | |||||||
Interest expense, net | (214 | ) | — | — | — | (214 | ) | |||||
Foreign currency (loss) gain | (13 | ) | — | 14 | — | 1 | ||||||
Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | |||||
Intercompany interest (expense) income | (16 | ) | 51 | (35 | ) | — | — | |||||
(288 | ) | 51 | (22 | ) | — | (259 | ) | |||||
Income before income taxes | 334 | 418 | 234 | — | 986 | |||||||
Income tax expense | (119 | ) | (132 | ) | (102 | ) | — | (353 | ) | |||
Equity in earnings of subsidiaries, net of tax | 418 | 76 | — | (494 | ) | — | ||||||
Net income | 633 | 362 | 132 | (494 | ) | 633 | ||||||
Less net income attributable to the noncontrolling interest | (45 | ) | — | (45 | ) | 45 | (45 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 588 | 362 | 87 | (449 | ) | 588 | |||||
Consolidating Statements of Operations | ||||||||||||
Year ended December 31, 2012 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 5,709 | 865 | 3,148 | (1,206 | ) | 8,516 | |||||
Cost of goods sold | 3,644 | 116 | 1,941 | (282 | ) | 5,419 | ||||||
Gross profit | 2,065 | 749 | 1,207 | (924 | ) | 3,097 | ||||||
Operating expenses: | ||||||||||||
Operating | 254 | 238 | 395 | (172 | ) | 715 | ||||||
Selling, general and administrative, including stock-based compensation | 1,004 | 1 | 335 | (752 | ) | 588 | ||||||
Depreciation | 35 | 4 | 87 | — | 126 | |||||||
Amortization | 204 | 130 | 66 | — | 400 | |||||||
1,497 | 373 | 883 | (924 | ) | 1,829 | |||||||
Operating income | 568 | 376 | 324 | — | 1,268 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | |||||
Gains on financial instruments | 48 | — | — | — | 48 | |||||||
Interest expense, net | (233 | ) | — | — | — | (233 | ) | |||||
Foreign currency (loss) gain | (10 | ) | 4 | 8 | — | 2 | ||||||
Intercompany (expense) interest income | (13 | ) | 51 | (38 | ) | — | — | |||||
(208 | ) | 55 | (34 | ) | — | (187 | ) | |||||
Income before income taxes | 360 | 431 | 290 | — | 1,081 | |||||||
Income tax expense | (116 | ) | (141 | ) | (137 | ) | — | (394 | ) | |||
Equity in earnings of subsidiaries, net of tax | 443 | 93 | — | (536 | ) | — | ||||||
Net income | 687 | 383 | 153 | (536 | ) | 687 | ||||||
Less net income attributable to the noncontrolling interest | (63 | ) | — | (63 | ) | 63 | (63 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 624 | 383 | 90 | (473 | ) | 624 | |||||
Consolidating Statements of Comprehensive Income | ||||||||||||
Year ended December 31, 2014 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 633 | 322 | 114 | (436 | ) | 633 | |||||
Foreign currency translation adjustments | (191 | ) | — | (191 | ) | 191 | (191 | ) | ||||
Total comprehensive income (loss) | 442 | 322 | (77 | ) | (245 | ) | 442 | |||||
Comprehensive income attributable to noncontrolling interest | (26 | ) | — | (26 | ) | 26 | (26 | ) | ||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 416 | 322 | (103 | ) | (219 | ) | 416 | ||||
Consolidating Statements of Comprehensive Income | ||||||||||||
Year ended December 31, 2013 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 633 | 362 | 132 | (494 | ) | 633 | |||||
Foreign currency translation adjustments | (72 | ) | — | (72 | ) | 72 | (72 | ) | ||||
Total comprehensive income | 561 | 362 | 60 | (422 | ) | 561 | ||||||
Comprehensive income attributable to noncontrolling interest | (20 | ) | — | (20 | ) | 20 | (20 | ) | ||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 541 | 362 | 40 | (402 | ) | 541 | |||||
Consolidating Statements of Comprehensive Income | ||||||||||||
Year ended December 31, 2012 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 687 | 383 | 153 | (536 | ) | 687 | |||||
Foreign currency translation adjustments | (27 | ) | — | (27 | ) | 27 | (27 | ) | ||||
Total comprehensive income | 660 | 383 | 126 | (509 | ) | 660 | ||||||
Comprehensive income attributable to noncontrolling interest | (44 | ) | — | (44 | ) | 44 | (44 | ) | ||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 616 | 383 | 82 | (465 | ) | 616 | |||||
Consolidating Statements of Cash Flows | ||||||||||||
Year ended December 31, 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 | $ | 349 | 459 | 405 | — | 1,213 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (160 | ) | (7 | ) | 5 | (20 | ) | (182 | ) | |||
Expenditures for cable and satellite television distribution rights, net | — | (31 | ) | — | — | (31 | ) | |||||
Decreases in restricted cash | 1 | — | 1 | — | 2 | |||||||
Intercompany investing activities | 607 | 267 | — | (874 | ) | — | ||||||
Net cash provided by (used in) investing activities | 448 | 229 | 6 | (894 | ) | (211 | ) | |||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (3,039 | ) | — | (10 | ) | — | (3,049 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 1,852 | — | — | — | 1,852 | |||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,997 | — | — | — | 1,997 | |||||||
Payment of debt origination fees | (24 | ) | — | — | — | (24 | ) | |||||
Payment of bond premium fees | (32 | ) | — | — | — | (32 | ) | |||||
Other financing activities | (3 | ) | — | — | — | (3 | ) | |||||
Dividends paid to Liberty | (1,765 | ) | — | — | — | (1,765 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (42 | ) | — | (42 | ) | |||||
Net short-term intercompany debt borrowings (repayments) | 365 | (42 | ) | (323 | ) | — | — | |||||
Intercompany financing activities | (224 | ) | (656 | ) | (14 | ) | 894 | — | ||||
Net cash used in financing activities | (873 | ) | (698 | ) | (389 | ) | 894 | (1,066 | ) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (46 | ) | — | (46 | ) | |||||
Net decrease in cash and cash equivalents | (76 | ) | (10 | ) | (24 | ) | — | (110 | ) | |||
Cash and cash equivalents, beginning of period | 78 | 133 | 246 | — | 457 | |||||||
Cash and cash equivalents, end of period | $ | 2 | 123 | 222 | — | 347 | ||||||
Consolidating Statements of Cash Flows | ||||||||||||
Year ended December 31, 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 | $ | 379 | 389 | 205 | — | 973 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (106 | ) | (8 | ) | (97 | ) | — | (211 | ) | |||
Expenditures for cable and satellite television distribution rights, net | — | (56 | ) | (2 | ) | — | (58 | ) | ||||
Decrease (increase) in restricted cash | 2 | — | (1 | ) | — | 1 | ||||||
Changes in other noncurrent assets | (1 | ) | — | (1 | ) | — | (2 | ) | ||||
Intercompany investing activities | 368 | 277 | — | (645 | ) | — | ||||||
Net cash provided by (used in) investing activities | 263 | 213 | (101 | ) | (645 | ) | (270 | ) | ||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (2,375 | ) | — | (12 | ) | — | (2,387 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 1,674 | — | — | — | 1,674 | |||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | |||||||
Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | |||||
Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | |||||
Other financing activities | 12 | — | — | — | 12 | |||||||
Dividends paid to Liberty | (1,005 | ) | — | — | — | (1,005 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (45 | ) | — | (45 | ) | |||||
Net short-term intercompany debt borrowings (repayments) | 190 | (63 | ) | (127 | ) | — | — | |||||
Intercompany financing activities | (123 | ) | (571 | ) | 49 | 645 | — | |||||
Net cash used in financing activities | (639 | ) | (634 | ) | (135 | ) | 645 | (763 | ) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (23 | ) | — | (23 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 3 | (32 | ) | (54 | ) | — | (83 | ) | ||||
Cash and cash equivalents, beginning of period | 75 | 165 | 300 | — | 540 | |||||||
Cash and cash equivalents, end of period | $ | 78 | 133 | 246 | — | 457 | ||||||
Consolidating Statements of Cash Flows | ||||||||||||
Year ended December 31, 2012 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Operating activities: | ||||||||||||
Net cash provided by operating activities | $ | 462 | 412 | 332 | — | 1,206 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (76 | ) | (5 | ) | (165 | ) | — | (246 | ) | |||
Expenditures for cable and satellite television distribution rights, net | — | (1 | ) | (1 | ) | — | (2 | ) | ||||
Cash paid for joint ventures and acquisitions of businesses, net of cash received | — | — | (95 | ) | — | (95 | ) | |||||
Decrease in restricted cash | 2 | — | — | — | 2 | |||||||
Changes in other noncurrent assets | (3 | ) | — | — | — | (3 | ) | |||||
Intercompany investing activities | 443 | 265 | — | (708 | ) | — | ||||||
Net cash provided by (used in) investing activities | 366 | 259 | (261 | ) | (708 | ) | (344 | ) | ||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (1,237 | ) | — | (9 | ) | — | (1,246 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 1,717 | — | — | — | 1,717 | |||||||
Proceeds from issuance of senior secured notes | 500 | — | — | — | 500 | |||||||
Payment of debt origination fees | (7 | ) | — | — | — | (7 | ) | |||||
Other financing activities | 20 | — | — | — | 20 | |||||||
Dividends paid to Liberty | (1,817 | ) | — | — | — | (1,817 | ) | |||||
Dividend paid to noncontrolling interest | — | — | (29 | ) | — | (29 | ) | |||||
Net short-term intercompany debt borrowings (repayments) | 214 | (59 | ) | (155 | ) | — | — | |||||
Intercompany financing activities | (146 | ) | (670 | ) | 108 | 708 | — | |||||
Net cash used in financing activities | $ | (756 | ) | (729 | ) | (85 | ) | 708 | (862 | ) | ||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (20 | ) | — | (20 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 72 | (58 | ) | (34 | ) | — | (20 | ) | ||||
Cash and cash equivalents, beginning of period | 3 | 223 | 334 | — | 560 | |||||||
Cash and cash equivalents, end of period | $ | 75 | 165 | 300 | — | 540 | ||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||
Cash and cash equivalents policy | (a) Cash and cash equivalents | |||||||||||||
All highly liquid investments purchased with an original maturity of three months or less are classified as cash equivalents. Cash equivalents were $245 million and $342 million at December 31, 2014 and 2013, respectively. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximates their fair values (Level 1). | ||||||||||||||
Restricted cash policy | (b) Restricted cash | |||||||||||||
Restricted cash at December 31, 2014 and 2013 primarily includes a cash deposit with a third party trustee that provides financial assurance that the Company will fulfill its obligations in relation to claims under its workers' compensation policy. | ||||||||||||||
Receivables policy | (c) Accounts receivable | |||||||||||||
A provision for customer bad debts is provided as a percentage of accounts receivable based on historical experience and is included within selling, general and administrative expense. A provision for noncustomer bad debt expense, related to amounts due from vendors for unsold and returned products, is provided based on an estimate of the probable expected losses and is included in cost of goods sold. | ||||||||||||||
Inventory policy | (d) Inventories | |||||||||||||
Inventories, consisting primarily of products held for sale, are stated at the lower of cost or market. Cost is determined by the average cost method, which approximates the first-in, first-out method. Assessments about the realizability of inventory require the Company to make judgments based on currently available information about the likely method of disposition including sales to individual customers, returns to product vendors, liquidations and the estimated recoverable values of each disposition category. | ||||||||||||||
Property and equipment policy | (e) Property and equipment | |||||||||||||
The costs of property and equipment are capitalized and depreciated over their estimated useful lives using the straight-line method beginning in the month of acquisition or in-service date. Transponders under capital leases are stated at the present value of minimum lease payments. When assets are sold or retired, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in net income. The costs of maintenance and repairs are charged to expense as incurred. | ||||||||||||||
The Company is party to several transponder capacity arrangements as a lessee, which are accounted for as capital leases. | ||||||||||||||
Interest capitalization policy | (f) Capitalized interest | |||||||||||||
The Company capitalizes interest cost incurred on debt during the construction of major projects exceeding one year. Capitalized interest was not material to the consolidated financial statements for any periods presented. | ||||||||||||||
Internal use software policy | (g) Internally developed software | |||||||||||||
Internal software development costs are capitalized in accordance with guidance on accounting for the costs of computer software developed or obtained for internal use, and are classified within other intangible assets in the consolidated balance sheets. The Company amortizes computer software and internal software development costs over an estimated useful life of approximately three years using the straight-line method. | ||||||||||||||
Goodwill policy | (h) Goodwill | |||||||||||||
Goodwill represents the excess of costs over the fair value of the net assets of businesses acquired. Goodwill is not amortized. Goodwill is tested annually for impairment, and more frequently if events and circumstances indicated that the asset might be impaired. An impairment loss would be recognized to the extent that the carrying amount exceeded the reporting unit's fair value. | ||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||
(in millions) | QVC-U.S. | QVC-Germany | QVC-Japan | QVC-U.K. | QVC-Italy | Total | ||||||||
Balance as of December 31, 2012 | $ | 4,190 | 334 | 349 | 212 | 149 | 5,234 | |||||||
Exchange rate fluctuations | — | 14 | (61 | ) | 4 | 6 | (37 | ) | ||||||
Balance as of December 31, 2013 | 4,190 | 348 | 288 | 216 | 155 | 5,197 | ||||||||
Exchange rate fluctuations | — | (40 | ) | (35 | ) | (13 | ) | (18 | ) | (106 | ) | |||
Balance as of December 31, 2014 | $ | 4,190 | 308 | 253 | 203 | 137 | 5,091 | |||||||
QVC utilizes a qualitative assessment for determining whether step one of the goodwill impairment analysis is necessary. In evaluating goodwill on a qualitative basis, QVC reviews the business performance of each reporting unit and evaluates other relevant factors. The Company considers whether there were any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges and the legal environments, and how these factors might impact country specific performance in future periods. Based on the mentioned considerations and the fact that a quantitative analysis (the "Step 1 Test") had not been performed in several years, QVC considered it prudent to perform a Step 1 Test for each reporting unit for the year ended December 31, 2014. If the carrying value of a reporting unit exceeds its fair value, a second test is required to measure the impairment loss (the "Step 2 Test"). In the Step 2 Test, the fair value (Level 3) of the reporting unit is allocated to all of the assets and liabilities of the reporting unit with any residual value being allocated to goodwill. Any excess of the carrying value of the goodwill over this allocated amount is recorded as an impairment charge. For all reporting units, fair value exceeded carrying value; and as such, no Step 2 Test or impairment charge was recorded in 2014. | ||||||||||||||
Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company's valuation analysis are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. | ||||||||||||||
Foreign currency transactions and translations policy | (i) Translation of foreign currencies | |||||||||||||
Assets and liabilities of foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustments, net of applicable income taxes, are recorded as a component of accumulated other comprehensive income in equity. | ||||||||||||||
Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in the consolidated statements of operations as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions. | ||||||||||||||
Revenue recognition policy | (j) Revenue recognition | |||||||||||||
The Company recognizes revenue at the time of delivery to customers. The revenue for shipments in-transit is recorded as deferred revenue. | ||||||||||||||
The Company's general policy is to allow customers to return merchandise for up to thirty days after the date of shipment. An allowance for returned merchandise is provided at the time revenue is recorded as a percentage of sales based on historical experience. The total reduction in net revenue due to returns for the years ended December 31, 2014, 2013 and 2012 aggregated to $2,023 million, $2,036 million and $1,965 million, respectively. | ||||||||||||||
A summary of activity in the allowance for sales returns, recorded on a net margin basis, was as follows: | ||||||||||||||
(in millions) | Balance | Additions- | Deductions | Balance | ||||||||||
beginning | charged | end of | ||||||||||||
of year | to earnings | year | ||||||||||||
2014 | $ | 106 | 1,253 | (1,250 | ) | 109 | ||||||||
2013 | 90 | 1,296 | (1,280 | ) | 106 | |||||||||
2012 | 85 | 1,222 | (1,217 | ) | 90 | |||||||||
The Company evaluates the criteria for reporting revenue gross as a principal versus net as an agent, in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, the Company is the primary obligor in the arrangement, has inventory risk, has latitude in establishing the selling price and selecting suppliers, and accordingly, records revenue gross. | ||||||||||||||
Sales and use taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from net revenue in the consolidated statements of operations. | ||||||||||||||
Cost of sales policy | (k) Cost of goods sold | |||||||||||||
Cost of goods sold primarily includes actual product cost, provision for obsolete inventory, buying allowances received from suppliers, shipping and handling costs and warehouse costs. | ||||||||||||||
Advertising cost policy | (l) Advertising costs | |||||||||||||
Advertising costs are expensed as incurred. Advertising costs amounted to $92 million, $89 million and $91 million for the years ended December 31, 2014, 2013 and 2012, respectively. These costs were included in selling, general and administrative expenses in the consolidated statements of operations. | ||||||||||||||
Stock-based compensation policy | (m) Stock-based compensation | |||||||||||||
As more fully described in note 10, the Company and Liberty have granted certain stock-based awards to employees of the Company. The Company measures the cost of employee services received in exchange for an award of equity instruments (such as stock options and restricted stock) based on the grant-date fair value of the award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the award). Stock-based compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations. | ||||||||||||||
Impairment of long-lived assets policy | (n) Impairment of long-lived assets | |||||||||||||
The Company reviews long-lived assets, such as property and equipment, internally developed software and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Impairment charges are recognized as an acceleration of depreciation expense or amortization expense in the consolidated statement of operations. | ||||||||||||||
Derivatives policy | (o) Derivatives | |||||||||||||
The Company accounts for derivatives and hedging activities in accordance with standards issued by the Financial Accounting Standards Board ("FASB"), which requires that all derivative instruments be recorded on the balance sheet at their respective fair values. Fair value is based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. For derivatives designated as hedges, changes in the fair value are either offset against the changes in fair value of the designated hedged item through earnings or recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. | ||||||||||||||
The Company generally enters into derivative contracts that it intends to designate as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. The ineffective portion of the change in fair value of a derivative instrument that qualifies as a cash flow hedge is reported in earnings. | ||||||||||||||
During the years ended December 31, 2009 and December 31, 2011, QVC entered into several interest rate swap arrangements to mitigate the interest rate risk associated with interest payments related to its variable rate debt. QVC assessed the effectiveness of its interest rate swaps using the hypothetical derivative method. During 2013 and 2012, QVC's elected interest terms did not effectively match the terms of the swap arrangements. As a result, the swaps did not qualify as cash flow hedges. Changes in fair value of these interest rate swaps were included in gains on financial instruments in the consolidated statements of operations. In March 2013, QVC's notional interest rate swaps of $3.1 billion expired. | ||||||||||||||
Income tax policy | (p) Income taxes | |||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||||
When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other income (expense) in the consolidated statements of operations. | ||||||||||||||
Consolidation policy | (q) Noncontrolling interest | |||||||||||||
The Company reports the noncontrolling interest of QVC-Japan within equity in the consolidated balance sheets and the amount of consolidated net income attributable to the noncontrolling interest is presented in the consolidated statements of operations. | ||||||||||||||
Business acquisition policy | (r) Business acquisitions | |||||||||||||
Acquired businesses are accounted for using the acquisition method of accounting, which requires the Company to record assets acquired and liabilities assumed at their respective fair values with the excess of the purchase price over estimated fair values recorded as goodwill. The assumptions made in determining the fair value of acquired assets and assumed liabilities as well as asset lives can materially impact the results of operations. The Company obtains information during due diligence and through other sources to establish respective fair values. Examples of factors and information that the Company uses to determine the fair values include tangible and intangible asset evaluations and appraisals and evaluations of existing contingencies and liabilities. If the initial valuation for an acquisition is incomplete by the end of the quarter in which the acquisition occurred, the Company will record a provisional estimate in the financial statements. The provisional estimate will be finalized as soon as information becomes available, but not later than one year from the acquisition date. | ||||||||||||||
Equity method investments policy | (s) Investment in affiliate | |||||||||||||
The Company holds an investment in China that is accounted for using the equity method. The equity method of accounting is used when we exercise significant influence, but do not have operating control, generally assumed to be 20%-50% ownership. Under the equity method, original investments are recorded at cost and adjusted by our share of undistributed earnings or losses of these companies. The excess of the Company's cost on its underlying interest in the net assets of the affiliate is allocated to identifiable intangible assets and goodwill. Equity investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. | ||||||||||||||
Use of estimates policy | (t) Use of estimates in the preparation of consolidated financial statements | |||||||||||||
The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, medical and other benefit related costs, depreciable lives of fixed assets, internally developed software, valuation of acquired intangible assets and goodwill, income taxes and stock-based compensation. | ||||||||||||||
New accounting pronouncements policy | (u) Recent accounting pronouncements | |||||||||||||
On May 28, 2014, the FASB 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 | (v) Reclassifications | |||||||||||||
Certain prior period amounts have been reclassified to conform with current period presentation. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||
Schedule of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||
(in millions) | QVC-U.S. | QVC-Germany | QVC-Japan | QVC-U.K. | QVC-Italy | Total | ||||||||
Balance as of December 31, 2012 | $ | 4,190 | 334 | 349 | 212 | 149 | 5,234 | |||||||
Exchange rate fluctuations | — | 14 | (61 | ) | 4 | 6 | (37 | ) | ||||||
Balance as of December 31, 2013 | 4,190 | 348 | 288 | 216 | 155 | 5,197 | ||||||||
Exchange rate fluctuations | — | (40 | ) | (35 | ) | (13 | ) | (18 | ) | (106 | ) | |||
Balance as of December 31, 2014 | $ | 4,190 | 308 | 253 | 203 | 137 | 5,091 | |||||||
Summary of activity in allowance for sales returns | A summary of activity in the allowance for sales returns, recorded on a net margin basis, was as follows: | |||||||||||||
(in millions) | Balance | Additions- | Deductions | Balance | ||||||||||
beginning | charged | end of | ||||||||||||
of year | to earnings | year | ||||||||||||
2014 | $ | 106 | 1,253 | (1,250 | ) | 109 | ||||||||
2013 | 90 | 1,296 | (1,280 | ) | 106 | |||||||||
2012 | 85 | 1,222 | (1,217 | ) | 90 | |||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Receivables [Abstract] | ||||||||||
Schedule of accounts receivable | Accounts receivable consisted of the following: | |||||||||
December 31, | ||||||||||
(in millions) | 2014 | 2013 | ||||||||
QVC Easy-Pay plan | $ | 1,015 | 915 | |||||||
Major credit card and other receivables | 272 | 279 | ||||||||
1,287 | 1,194 | |||||||||
Less allowance for doubtful accounts | (91 | ) | (83 | ) | ||||||
Accounts receivable, net | $ | 1,196 | 1,111 | |||||||
Summary of activity in the allowance for doubtful accounts | A summary of activity in the allowance for doubtful accounts was as follows (in millions): | |||||||||
(in millions) | Balance | Additions- | Deductions- | Balance | ||||||
beginning | charged | write-offs | end of | |||||||
of year | to expense | year | ||||||||
2014 | $ | 83 | 92 | (84 | ) | 91 | ||||
2013 | 74 | 81 | (72 | ) | 83 | |||||
2012 | 79 | 75 | (80 | ) | 74 | |||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Schedule of property and equipment, net | Property and equipment consisted of the following: | ||||||
December 31, | Estimated | ||||||
useful | |||||||
(in millions) | 2014 | 2013 | life | ||||
Land | $ | 84 | 87 | N/A | |||
Buildings and improvements | 948 | 954 | 8Â -Â 20Â years | ||||
Furniture and other equipment | 417 | 429 | 2Â -Â 8Â years | ||||
Broadcast equipment | 105 | 107 | 3Â -Â 5Â years | ||||
Computer equipment | 145 | 204 | 2Â -Â 4Â years | ||||
Transponders (note 9) | 168 | 170 | 8 - 15 years | ||||
Projects in progress | 43 | 74 | N/A | ||||
1,910 | 2,025 | ||||||
Less accumulated depreciation | (884 | ) | (919 | ) | |||
Property and equipment, net | $ | 1,026 | 1,106 | ||||
Cable_and_Satellite_Television1
Cable and Satellite Television Distribution Rights, Net (Tables) | 12 Months Ended | |||||
Dec. 31, 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: | |||||
December 31, | ||||||
(in millions) | 2014 | 2013 | ||||
Cable and satellite television distribution rights | $ | 2,308 | 2,324 | |||
Less accumulated amortization | (1,847 | ) | (1,700 | ) | ||
Cable and satellite television distribution rights, net | $ | 461 | 624 | |||
Schedule of Expected Amortization Expense | As of December 31, 2014, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | |||||
2015 | $ | 171 | ||||
2016 | 165 | |||||
2017 | 111 | |||||
2018 | 6 | |||||
2019 | 3 | |||||
Other_Intangible_Assets_Net_Ta
Other Intangible Assets, Net (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Other Intangible Assets [Abstract] | ||||||||||||||||
Schedule of Acquired Intangible Assets by Class | Other intangible assets consisted of the following: | |||||||||||||||
December 31, | Weighted average remaining life (years) | |||||||||||||||
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 | $ | 568 | (369 | ) | 199 | 615 | (393 | ) | 222 | 2.3 | ||||||
Affiliate and customer relationships | 2,428 | (1,958 | ) | 470 | 2,450 | (1,802 | ) | 648 | 2.8 | |||||||
Debt origination fees | 60 | (14 | ) | 46 | 51 | (13 | ) | 38 | 10 | |||||||
Trademarks (indefinite life) | 2,428 | — | 2,428 | 2,428 | — | 2,428 | — | |||||||||
$ | 5,484 | (2,341 | ) | 3,143 | 5,544 | (2,208 | ) | 3,336 | 3.1 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2014, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions): | |||||||||||||||
2015 | $ | 279 | ||||||||||||||
2016 | 248 | |||||||||||||||
2017 | 154 | |||||||||||||||
2018 | 9 | |||||||||||||||
2019 | 8 | |||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accrued Liabilities [Abstract] | ||||||
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: | |||||
December 31, | ||||||
(in millions) | 2014 | 2013 | ||||
Accounts payable non-trade | $ | 200 | 323 | |||
Income taxes | 137 | 126 | ||||
Accrued compensation and benefits | 110 | 98 | ||||
Allowance for sales returns | 109 | 106 | ||||
Deferred revenue | 85 | 73 | ||||
Sales and other taxes | 83 | 79 | ||||
Accrued interest | 79 | 58 | ||||
Other | 82 | 97 | ||||
$ | 885 | 960 | ||||
LongTerm_Debt_and_Interest_Rat1
Long-Term Debt and Interest Rate Swap Arrangements (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Debt Disclosure [Abstract] | ||||||
Schedule of Debt | Long-term debt consisted of the following: | |||||
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 | ||||
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 | — | ||||
4.45% Senior Secured Notes due 2025, net of original issue discount | 599 | — | ||||
5.45% Senior Secured Notes due 2034, net of original issue discount | 399 | — | ||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | 300 | ||||
Senior secured credit facility | 508 | 922 | ||||
Capital lease obligations | 74 | 80 | ||||
Total debt | 4,629 | 3,813 | ||||
Less current portion | (9 | ) | (13 | ) | ||
Long-term portion of debt and capital lease obligations | $ | 4,620 | 3,800 | |||
Leases_and_Transponder_Service1
Leases and Transponder Service Agreements (Tables) | 12 Months Ended | |||||
Dec. 31, 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 December 31, 2014 consisted of the following: | |||||
(in millions) | Capital transponders | Operating leases | ||||
2015 | $ | 11 | 15 | |||
2016 | 10 | 14 | ||||
2017 | 11 | 14 | ||||
2018 | 12 | 13 | ||||
2019 | 11 | 12 | ||||
Thereafter | 26 | 97 | ||||
Total | $ | 81 | 165 | |||
Stock_Options_and_Other_ShareB1
Stock Options and Other Share-Based Awards (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||
Schedule of stock options activity | A summary of the activity of the Liberty Incentive Plan with respect to the QVCA options granted to QVC employees and officers as of and during the year ended December 31, 2014 is presented below: | |||||||||
Options | Weighted | Aggregate | Weighted average remaining | |||||||
average | intrinsic | life | ||||||||
exercise | value | (years) | ||||||||
price | (000s) | |||||||||
Outstanding at January 1, 2014 | 15,638,139 | $ | 17.01 | $ | 192,975 | 4.4 | ||||
Granted | 1,819,559 | 26.9 | ||||||||
Exercised | (3,784,111 | ) | 14.42 | |||||||
Forfeited | (1,007,491 | ) | 19.31 | |||||||
Net effect of 2014 Reattribution | 512,995 | 16.36 | ||||||||
Outstanding at December 31, 2014 | 13,179,091 | 17.34 | 159,203 | 3.7 | ||||||
Exercisable at December 31, 2014 | 7,325,843 | 14.94 | 106,078 | 2.9 | ||||||
A summary of the activity of the Liberty Incentive Plan with respect to the LVNTA options granted to QVC employees and officers as of and during the year ended December 31, 2014 is presented below: | ||||||||||
Options | Weighted average exercise | Aggregate intrinsic | Weighted average remaining | |||||||
price | value (000s) | life (years) | ||||||||
Outstanding at January 1, 2014 | 441,212 | $ | 29.4 | $ | 14,072 | 3.6 | ||||
Granted | — | — | ||||||||
Exercised | (106,709 | ) | 16.02 | |||||||
Forfeited | — | — | ||||||||
Adjustment for TripAdvisor Holdings Spin-Off | 6,736 | 14.86 | ||||||||
Net effect of 2014 Reattribution | 612,138 | 22.31 | ||||||||
Outstanding at December 31, 2014 | 953,377 | 19.51 | 17,361 | 2.8 | ||||||
Exercisable at December 31, 2014 | 597,523 | 19.7 | 10,767 | 2.6 | ||||||
Schedule of stock options valuation assumptions | During the years ended December 31, 2014, 2013 and 2012, the fair value of each QVCA option was determined as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: | |||||||||
2014 | 2013 | 2012 | ||||||||
Expected volatility | 38.7 | % | 38.3 | % | 41.9 | % | ||||
Expected term (years) | 6.3 | 6.2 | 5.2 | |||||||
Risk free interest rate | 2 | % | 1.1 | % | 0.8 | % | ||||
Expected dividend yield | — | — | — | |||||||
During the years ended December 31, 2014, 2013 and 2012, the fair value of each LVNTA option was determined as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Expected volatility | — | % | — | % | 49.9 | % | ||||
Expected term (years) | — | — | 4.9 | |||||||
Risk free interest rate | — | % | — | % | 0.6 | % | ||||
Expected dividend yield | — | — | — | |||||||
Schedule of restricted stock activity | A summary of the activity of the Liberty Incentive Plan with respect to the QVCA restricted shares granted to QVC employees and officers as of and during the year ended December 31, 2014 is presented below: | |||||||||
Restricted Shares | Weighted average | |||||||||
grant date fair value | ||||||||||
Outstanding at January 1, 2014 | 1,214,462 | $ | 17.62 | |||||||
Granted | 328,887 | 24.86 | ||||||||
Vested | (460,069 | ) | 14.79 | |||||||
Forfeited | (48,154 | ) | 17.79 | |||||||
Outstanding at December 31, 2014 | 1,035,126 | 19.29 | ||||||||
A summary of the activity of the Liberty Incentive Plan with respect to the LVNTA restricted shares granted to QVC employees and officers as of and during the year ended December 31, 2014 is presented below: | ||||||||||
Restricted Shares | Weighted | |||||||||
Average | ||||||||||
Grant Date Fair Value | ||||||||||
Outstanding at January 1, 2014 | 64,158 | 19.34 | ||||||||
Granted | — | — | ||||||||
Vested | (34,718 | ) | 9.01 | |||||||
Forfeited | (2,445 | ) | 14.98 | |||||||
Net effect of 2014 Reattribution | 146,798 | 23.13 | ||||||||
Outstanding at December 31, 2014 | 173,793 | 22.13 | ||||||||
Income_Taxes_Income_Tax_Tables
Income Taxes Income Tax (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of components of income tax expense (benefit) | Income tax expense (benefit) consisted of the following: | |||||||
Years ended December 31, | ||||||||
(in millions) | 2014 | 2013 | 2012 | |||||
Current: | ||||||||
U.S. federal | $ | 396 | 361 | 369 | ||||
State and local | 28 | 22 | 23 | |||||
Foreign jurisdiction | 132 | 78 | 136 | |||||
Total | 556 | 461 | 528 | |||||
Deferred: | ||||||||
U.S. federal | (182 | ) | (107 | ) | (121 | ) | ||
State and local | (15 | ) | (7 | ) | (7 | ) | ||
Foreign jurisdiction | (5 | ) | 6 | (6 | ) | |||
Total | (202 | ) | (108 | ) | (134 | ) | ||
Total income tax expense | $ | 354 | 353 | 394 | ||||
Schedule of pre-tax income, domestic and foreign | Pre-tax income was as follows: | |||||||
Years ended December 31, | ||||||||
(in millions) | 2014 | 2013 | 2012 | |||||
QVC-U.S. | $ | 827 | 824 | 865 | ||||
QVC-Germany | 16 | 18 | 29 | |||||
QVC-Japan | 146 | 181 | 253 | |||||
QVC-U.K. | 19 | 1 | (17 | ) | ||||
QVC-Italy | (15 | ) | (38 | ) | (49 | ) | ||
QVC-France | (6 | ) | — | — | ||||
Consolidated QVC | $ | 987 | 986 | 1,081 | ||||
Schedule of effective income tax rate reconciliation | Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following: | |||||||
Years ended December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Provision at statutory rate | 35 | Â % | 35 | Â % | 35 | Â % | ||
State income taxes, net of federal benefit | 0.9 | Â % | 0.7 | Â % | 1 | Â % | ||
Foreign taxes | 0.6 | Â % | 0.6 | Â % | 1.3 | Â % | ||
Foreign earnings repatriation | (0.3 | )% | (0.4 | )% | (1.1 | )% | ||
Valuation allowance | 0.2 |  % | — |  % | — |  % | ||
Permanent differences | (0.5 | )% | — |  % | 0.1 |  % | ||
Other, net | — |  % | (0.1 | )% | 0.1 |  % | ||
Total income tax expense | 35.9 | Â % | 35.8 | Â % | 36.4 | Â % | ||
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: | |||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Deferred tax assets: | ||||||||
Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts | $ | 33 | 32 | |||||
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 | 33 | 36 | ||||||
Allowance for sales returns | 41 | 39 | ||||||
Deferred compensation | 43 | 36 | ||||||
Unrecognized federal and state tax benefits | 63 | 29 | ||||||
Accrued liabilities | 82 | 25 | ||||||
Other | 27 | 36 | ||||||
Subtotal | 322 | 233 | ||||||
Valuation allowance | (3 | ) | (1 | ) | ||||
Total deferred tax assets | 319 | 232 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | (1,222 | ) | (1,349 | ) | ||||
Cumulative translation of foreign currencies | (8 | ) | (47 | ) | ||||
Total deferred tax liabilities | (1,230 | ) | (1,396 | ) | ||||
Net deferred tax liability | $ | (911 | ) | (1,164 | ) | |||
Schedule of unrecognized tax benefits roll forward | A reconciliation of the 2014 beginning and ending amount of the liability for unrecognized tax benefits is as follows: | |||||||
(in millions) | ||||||||
Balance at January 1, 2014 | 89 | |||||||
Increases related to prior year tax positions | 27 | |||||||
Decreases related to prior year tax positions | (10 | ) | ||||||
Increases related to current year tax positions | 17 | |||||||
Balance at December 31, 2014 | 123 | |||||||
Assets_and_Liabilities_Measure1
Assets and Liabilities Measured at Fair Value (Tables) | 12 Months Ended | |||||||||
Dec. 31, 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 December 31, 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 | $ | 245 | 245 | — | — | |||||
Long-term liabilities: | ||||||||||
Debt (note 8) | 4,626 | — | 4,626 | — | ||||||
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 8) | 3,783 | — | 3,783 | — | ||||||
Information_about_QVCs_Operati1
Information about QVC's Operating Segments (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Schedule of Revenue and Adjusted OIBDA by Segment | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in millions) | Net | Adjusted | Net | Adjusted | Net | Adjusted | ||||||||
revenue | OIBDA | revenue | OIBDA | revenue | OIBDA | |||||||||
QVC-U.S. | $ | 6,055 | 1,429 | 5,844 | 1,352 | 5,585 | 1,292 | |||||||
QVC-Germany | 970 | 174 | 971 | 173 | 956 | 179 | ||||||||
QVC-Japan | 908 | 176 | 1,024 | 212 | 1,247 | 279 | ||||||||
QVC-U.K. | 730 | 141 | 657 | 118 | 641 | 104 | ||||||||
QVC-Italy | 138 | (4 | ) | 127 | (14 | ) | 87 | (26 | ) | |||||
QVC-France | — | (6 | ) | — | — | — | — | |||||||
Consolidated QVC | $ | 8,801 | 1,910 | 8,623 | 1,841 | 8,516 | 1,828 | |||||||
Schedule of Depreciation and Amortization by Segment | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | ||||||||
QVC-U.S. | $ | 56 | 391 | 55 | 362 | 51 | 338 | |||||||
QVC-Germany | 33 | 36 | 30 | 38 | 31 | 33 | ||||||||
QVC-Japan | 19 | 9 | 23 | 9 | 16 | 10 | ||||||||
QVC-U.K. | 16 | 14 | 12 | 14 | 21 | 12 | ||||||||
QVC-Italy | 11 | 2 | 7 | 8 | 7 | 7 | ||||||||
QVC-France | — | — | — | — | — | — | ||||||||
Consolidated QVC | $ | 135 | 452 | 127 | 431 | 126 | 400 | |||||||
Schedule of Capital Expenditures and Total Assets by Segment | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
(in millions) | Total | Capital | Total | Capital | ||||||||||
assets | expenditures, net | assets | expenditures, net | |||||||||||
QVC-U.S. | $ | 10,133 | 141 | 10,322 | 123 | |||||||||
QVC-Germany | 915 | 10 | 1,109 | 28 | ||||||||||
QVC-Japan | 644 | 2 | 732 | 16 | ||||||||||
QVC-U.K. | 537 | 16 | 613 | 16 | ||||||||||
QVC-Italy | 245 | 12 | 280 | 28 | ||||||||||
QVC-France | 2 | 1 | — | — | ||||||||||
Consolidated QVC | $ | 12,476 | 182 | 13,056 | 211 | |||||||||
Long-Lived Assets by Segment | Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | |||||||||||||
December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||
QVC-U.S. | $ | 463 | 448 | |||||||||||
QVC-Germany | 209 | 244 | ||||||||||||
QVC-Japan | 176 | 220 | ||||||||||||
QVC-U.K. | 120 | 129 | ||||||||||||
QVC-Italy | 57 | 65 | ||||||||||||
QVC-France | 1 | — | ||||||||||||
Consolidated QVC | $ | 1,026 | 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: | |||||||||||||
Years ended December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||
Adjusted OIBDA | $ | 1,910 | 1,841 | 1,828 | ||||||||||
Stock-based compensation | (44 | ) | (38 | ) | (34 | ) | ||||||||
Depreciation and amortization | (587 | ) | (558 | ) | (526 | ) | ||||||||
Equity in losses of investee | (8 | ) | (4 | ) | (4 | ) | ||||||||
Gains on financial instruments | — | 15 | 48 | |||||||||||
Interest expense, net | (239 | ) | (214 | ) | (233 | ) | ||||||||
Foreign currency gain | 3 | 1 | 2 | |||||||||||
Loss on extinguishment of debt | (48 | ) | (57 | ) | — | |||||||||
Income before income taxes | $ | 987 | 986 | 1,081 | ||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | |||||||
Dec. 31, 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 (loss), net of taxes ("AOCI"), is summarized as follows: | |||||||
(in millions) | Foreign currency translation adjustments | AOCI | ||||||
Balance at January 1, 2012 | $ | 194 | 194 | |||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (8 | ) | (8 | ) | ||||
Balance at December 31, 2012 | 186 | 186 | ||||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (47 | ) | (47 | ) | ||||
Balance at December 31, 2013 | 139 | 139 | ||||||
Other comprehensive loss attributable to QVC, Inc. stockholder | (178 | ) | (178 | ) | ||||
Balance at December 31, 2014 | (39 | ) | (39 | ) | ||||
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 | |||||
Year ended December 31, 2014: | ||||||||
Foreign currency translation adjustments | $ | (240 | ) | 49 | (191 | ) | ||
Other comprehensive loss | (240 | ) | 49 | (191 | ) | |||
Year ended December 31, 2013: | ||||||||
Foreign currency translation adjustments | $ | (64 | ) | (8 | ) | (72 | ) | |
Other comprehensive loss | (64 | ) | (8 | ) | (72 | ) | ||
Year ended December 31, 2012: | ||||||||
Foreign currency translation adjustments | $ | (48 | ) | 21 | (27 | ) | ||
Other comprehensive loss | (48 | ) | 21 | (27 | ) | |||
GuarantorNonGuarantor_Subsidia1
Guarantor/Non-Guarantor Subsidiary Financial Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | ||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Period | ||||||||||||
December 31, 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 | $ | 2 | 123 | 222 | — | 347 | ||||||
Restricted cash | 10 | — | 2 | — | 12 | |||||||
Accounts receivable, net | 909 | — | 287 | — | 1,196 | |||||||
Inventories | 680 | — | 202 | — | 882 | |||||||
Deferred income taxes | 192 | — | 18 | — | 210 | |||||||
Prepaid expenses | 25 | — | 25 | — | 50 | |||||||
Total current assets | 1,818 | 123 | 756 | — | 2,697 | |||||||
Property and equipment, net | 273 | 68 | 685 | — | 1,026 | |||||||
Cable and satellite television distribution rights, net | — | 388 | 73 | — | 461 | |||||||
Goodwill | 4,184 | — | 907 | — | 5,091 | |||||||
Other intangible assets, net | 1,023 | 2,051 | 69 | — | 3,143 | |||||||
Other noncurrent assets | 1 | — | 57 | — | 58 | |||||||
Investments in subsidiaries | 4,681 | 1,386 | — | (6,067 | ) | — | ||||||
Total assets | $ | 11,980 | 4,016 | 2,547 | (6,067 | ) | 12,476 | |||||
Liabilities and equity | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 7 | — | 9 | ||||||
Accounts payable-trade | 420 | — | 209 | — | 629 | |||||||
Accrued liabilities | 282 | 143 | 460 | — | 885 | |||||||
Intercompany accounts payable (receivable) | 1,384 | (921 | ) | (463 | ) | — | — | |||||
Total current liabilities | 2,088 | (778 | ) | 213 | — | 1,523 | ||||||
Long-term portion of debt and capital lease obligations | 4,565 | — | 55 | — | 4,620 | |||||||
Deferred compensation | 16 | — | 1 | — | 17 | |||||||
Deferred income taxes | 269 | 877 | (25 | ) | — | 1,121 | ||||||
Other long-term liabilities | 99 | — | 50 | — | 149 | |||||||
Total liabilities | 7,037 | 99 | 294 | — | 7,430 | |||||||
Equity: | ||||||||||||
QVC, Inc. stockholder's equity | 4,943 | 3,917 | 2,150 | (6,067 | ) | 4,943 | ||||||
Noncontrolling interest | — | — | 103 | — | 103 | |||||||
Total equity | 4,943 | 3,917 | 2,253 | (6,067 | ) | 5,046 | ||||||
Total liabilities and equity | $ | 11,980 | 4,016 | 2,547 | (6,067 | ) | 12,476 | |||||
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Period | 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, Current Period | Consolidating Statements of Operations | |||||||||||
Year ended December 31, 2014 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 6,198 | 920 | 2,992 | (1,309 | ) | 8,801 | |||||
Cost of goods sold | 3,907 | 108 | 1,807 | (275 | ) | 5,547 | ||||||
Gross profit | 2,291 | 812 | 1,185 | (1,034 | ) | 3,254 | ||||||
Operating expenses: | ||||||||||||
Operating | 343 | 269 | 376 | (235 | ) | 753 | ||||||
Selling, general and administrative, including stock-based compensation | 1,081 | 1 | 352 | (799 | ) | 635 | ||||||
Depreciation | 39 | 5 | 91 | — | 135 | |||||||
Amortization | 223 | 153 | 76 | — | 452 | |||||||
1,686 | 428 | 895 | (1,034 | ) | 1,975 | |||||||
Operating income | 605 | 384 | 290 | — | 1,279 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (8 | ) | — | (8 | ) | |||||
Interest expense, net | (230 | ) | — | (9 | ) | — | (239 | ) | ||||
Foreign currency gain (loss) | 10 | (3 | ) | (4 | ) | — | 3 | |||||
Loss on extinguishment of debt | (48 | ) | — | — | — | (48 | ) | |||||
Intercompany interest and other (expense) income | (22 | ) | 51 | (9 | ) | (20 | ) | — | ||||
(290 | ) | 48 | (30 | ) | (20 | ) | (292 | ) | ||||
Income before income taxes | 315 | 432 | 260 | (20 | ) | 987 | ||||||
Income tax expense | (73 | ) | (135 | ) | (146 | ) | — | (354 | ) | |||
Equity in earnings of subsidiaries, net of tax | 391 | 25 | — | (416 | ) | — | ||||||
Net income | 633 | 322 | 114 | (436 | ) | 633 | ||||||
Less net income attributable to the noncontrolling interest | (39 | ) | — | (39 | ) | 39 | (39 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 594 | 322 | 75 | (397 | ) | 594 | |||||
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Period | Consolidating Statements of Operations | |||||||||||
Year ended December 31, 2013 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 5,979 | 893 | 2,977 | (1,226 | ) | 8,623 | |||||
Cost of goods sold | 3,804 | 107 | 1,831 | (277 | ) | 5,465 | ||||||
Gross profit | 2,175 | 786 | 1,146 | (949 | ) | 3,158 | ||||||
Operating expenses: | ||||||||||||
Operating | 283 | 267 | 370 | (180 | ) | 740 | ||||||
Selling, general and administrative, including stock-based compensation | 1,028 | — | 356 | (769 | ) | 615 | ||||||
Depreciation | 38 | 6 | 83 | — | 127 | |||||||
Amortization | 204 | 146 | 81 | — | 431 | |||||||
1,553 | 419 | 890 | (949 | ) | 1,913 | |||||||
Operating income | 622 | 367 | 256 | — | 1,245 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | |||||
Gains on financial instruments | 12 | — | 3 | — | 15 | |||||||
Interest expense, net | (214 | ) | — | — | — | (214 | ) | |||||
Foreign currency (loss) gain | (13 | ) | — | 14 | — | 1 | ||||||
Loss on extinguishment of debt | (57 | ) | — | — | — | (57 | ) | |||||
Intercompany interest (expense) income | (16 | ) | 51 | (35 | ) | — | — | |||||
(288 | ) | 51 | (22 | ) | — | (259 | ) | |||||
Income before income taxes | 334 | 418 | 234 | — | 986 | |||||||
Income tax expense | (119 | ) | (132 | ) | (102 | ) | — | (353 | ) | |||
Equity in earnings of subsidiaries, net of tax | 418 | 76 | — | (494 | ) | — | ||||||
Net income | 633 | 362 | 132 | (494 | ) | 633 | ||||||
Less net income attributable to the noncontrolling interest | (45 | ) | — | (45 | ) | 45 | (45 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 588 | 362 | 87 | (449 | ) | 588 | |||||
Year ended December 31, 2012 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 5,709 | 865 | 3,148 | (1,206 | ) | 8,516 | |||||
Cost of goods sold | 3,644 | 116 | 1,941 | (282 | ) | 5,419 | ||||||
Gross profit | 2,065 | 749 | 1,207 | (924 | ) | 3,097 | ||||||
Operating expenses: | ||||||||||||
Operating | 254 | 238 | 395 | (172 | ) | 715 | ||||||
Selling, general and administrative, including stock-based compensation | 1,004 | 1 | 335 | (752 | ) | 588 | ||||||
Depreciation | 35 | 4 | 87 | — | 126 | |||||||
Amortization | 204 | 130 | 66 | — | 400 | |||||||
1,497 | 373 | 883 | (924 | ) | 1,829 | |||||||
Operating income | 568 | 376 | 324 | — | 1,268 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (4 | ) | — | (4 | ) | |||||
Gains on financial instruments | 48 | — | — | — | 48 | |||||||
Interest expense, net | (233 | ) | — | — | — | (233 | ) | |||||
Foreign currency (loss) gain | (10 | ) | 4 | 8 | — | 2 | ||||||
Intercompany (expense) interest income | (13 | ) | 51 | (38 | ) | — | — | |||||
(208 | ) | 55 | (34 | ) | — | (187 | ) | |||||
Income before income taxes | 360 | 431 | 290 | — | 1,081 | |||||||
Income tax expense | (116 | ) | (141 | ) | (137 | ) | — | (394 | ) | |||
Equity in earnings of subsidiaries, net of tax | 443 | 93 | — | (536 | ) | — | ||||||
Net income | 687 | 383 | 153 | (536 | ) | 687 | ||||||
Less net income attributable to the noncontrolling interest | (63 | ) | — | (63 | ) | 63 | (63 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 624 | 383 | 90 | (473 | ) | 624 | |||||
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Period | Consolidating Statements of Comprehensive Income | |||||||||||
Year ended December 31, 2014 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 633 | 322 | 114 | (436 | ) | 633 | |||||
Foreign currency translation adjustments | (191 | ) | — | (191 | ) | 191 | (191 | ) | ||||
Total comprehensive income (loss) | 442 | 322 | (77 | ) | (245 | ) | 442 | |||||
Comprehensive income attributable to noncontrolling interest | (26 | ) | — | (26 | ) | 26 | (26 | ) | ||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 416 | 322 | (103 | ) | (219 | ) | 416 | ||||
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Period | ||||||||||||
Year ended December 31, 2012 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 687 | 383 | 153 | (536 | ) | 687 | |||||
Foreign currency translation adjustments | (27 | ) | — | (27 | ) | 27 | (27 | ) | ||||
Total comprehensive income | 660 | 383 | 126 | (509 | ) | 660 | ||||||
Comprehensive income attributable to noncontrolling interest | (44 | ) | — | (44 | ) | 44 | (44 | ) | ||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 616 | 383 | 82 | (465 | ) | 616 | |||||
Year ended December 31, 2013 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 633 | 362 | 132 | (494 | ) | 633 | |||||
Foreign currency translation adjustments | (72 | ) | — | (72 | ) | 72 | (72 | ) | ||||
Total comprehensive income | 561 | 362 | 60 | (422 | ) | 561 | ||||||
Comprehensive income attributable to noncontrolling interest | (20 | ) | — | (20 | ) | 20 | (20 | ) | ||||
Comprehensive income attributable to QVC, Inc. stockholder | $ | 541 | 362 | 40 | (402 | ) | 541 | |||||
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Period | Consolidating Statements of Cash Flows | |||||||||||
Year ended December 31, 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 | $ | 349 | 459 | 405 | — | 1,213 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (160 | ) | (7 | ) | 5 | (20 | ) | (182 | ) | |||
Expenditures for cable and satellite television distribution rights, net | — | (31 | ) | — | — | (31 | ) | |||||
Decreases in restricted cash | 1 | — | 1 | — | 2 | |||||||
Intercompany investing activities | 607 | 267 | — | (874 | ) | — | ||||||
Net cash provided by (used in) investing activities | 448 | 229 | 6 | (894 | ) | (211 | ) | |||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (3,039 | ) | — | (10 | ) | — | (3,049 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 1,852 | — | — | — | 1,852 | |||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,997 | — | — | — | 1,997 | |||||||
Payment of debt origination fees | (24 | ) | — | — | — | (24 | ) | |||||
Payment of bond premium fees | (32 | ) | — | — | — | (32 | ) | |||||
Other financing activities | (3 | ) | — | — | — | (3 | ) | |||||
Dividends paid to Liberty | (1,765 | ) | — | — | — | (1,765 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (42 | ) | — | (42 | ) | |||||
Net short-term intercompany debt borrowings (repayments) | 365 | (42 | ) | (323 | ) | — | — | |||||
Intercompany financing activities | (224 | ) | (656 | ) | (14 | ) | 894 | — | ||||
Net cash used in financing activities | (873 | ) | (698 | ) | (389 | ) | 894 | (1,066 | ) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (46 | ) | — | (46 | ) | |||||
Net decrease in cash and cash equivalents | (76 | ) | (10 | ) | (24 | ) | — | (110 | ) | |||
Cash and cash equivalents, beginning of period | 78 | 133 | 246 | — | 457 | |||||||
Cash and cash equivalents, end of period | $ | 2 | 123 | 222 | — | 347 | ||||||
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Period | Consolidating Statements of Cash Flows | |||||||||||
Year ended December 31, 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 | $ | 379 | 389 | 205 | — | 973 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (106 | ) | (8 | ) | (97 | ) | — | (211 | ) | |||
Expenditures for cable and satellite television distribution rights, net | — | (56 | ) | (2 | ) | — | (58 | ) | ||||
Decrease (increase) in restricted cash | 2 | — | (1 | ) | — | 1 | ||||||
Changes in other noncurrent assets | (1 | ) | — | (1 | ) | — | (2 | ) | ||||
Intercompany investing activities | 368 | 277 | — | (645 | ) | — | ||||||
Net cash provided by (used in) investing activities | 263 | 213 | (101 | ) | (645 | ) | (270 | ) | ||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (2,375 | ) | — | (12 | ) | — | (2,387 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 1,674 | — | — | — | 1,674 | |||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 | — | — | — | 1,050 | |||||||
Payment of debt origination fees | (16 | ) | — | — | — | (16 | ) | |||||
Payment of bond premium fees | (46 | ) | — | — | — | (46 | ) | |||||
Other financing activities | 12 | — | — | — | 12 | |||||||
Dividends paid to Liberty | (1,005 | ) | — | — | — | (1,005 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (45 | ) | — | (45 | ) | |||||
Net short-term intercompany debt borrowings (repayments) | 190 | (63 | ) | (127 | ) | — | — | |||||
Intercompany financing activities | (123 | ) | (571 | ) | 49 | 645 | — | |||||
Net cash used in financing activities | (639 | ) | (634 | ) | (135 | ) | 645 | (763 | ) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (23 | ) | — | (23 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 3 | (32 | ) | (54 | ) | — | (83 | ) | ||||
Cash and cash equivalents, beginning of period | 75 | 165 | 300 | — | 540 | |||||||
Cash and cash equivalents, end of period | $ | 78 | 133 | 246 | — | 457 | ||||||
Consolidating Statements of Cash Flows | ||||||||||||
Year ended December 31, 2012 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Operating activities: | ||||||||||||
Net cash provided by operating activities | $ | 462 | 412 | 332 | — | 1,206 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (76 | ) | (5 | ) | (165 | ) | — | (246 | ) | |||
Expenditures for cable and satellite television distribution rights, net | — | (1 | ) | (1 | ) | — | (2 | ) | ||||
Cash paid for joint ventures and acquisitions of businesses, net of cash received | — | — | (95 | ) | — | (95 | ) | |||||
Decrease in restricted cash | 2 | — | — | — | 2 | |||||||
Changes in other noncurrent assets | (3 | ) | — | — | — | (3 | ) | |||||
Intercompany investing activities | 443 | 265 | — | (708 | ) | — | ||||||
Net cash provided by (used in) investing activities | 366 | 259 | (261 | ) | (708 | ) | (344 | ) | ||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (1,237 | ) | — | (9 | ) | — | (1,246 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 1,717 | — | — | — | 1,717 | |||||||
Proceeds from issuance of senior secured notes | 500 | — | — | — | 500 | |||||||
Payment of debt origination fees | (7 | ) | — | — | — | (7 | ) | |||||
Other financing activities | 20 | — | — | — | 20 | |||||||
Dividends paid to Liberty | (1,817 | ) | — | — | — | (1,817 | ) | |||||
Dividend paid to noncontrolling interest | — | — | (29 | ) | — | (29 | ) | |||||
Net short-term intercompany debt borrowings (repayments) | 214 | (59 | ) | (155 | ) | — | — | |||||
Intercompany financing activities | (146 | ) | (670 | ) | 108 | 708 | — | |||||
Net cash used in financing activities | $ | (756 | ) | (729 | ) | (85 | ) | 708 | (862 | ) | ||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (20 | ) | — | (20 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 72 | (58 | ) | (34 | ) | — | (20 | ) | ||||
Cash and cash equivalents, beginning of period | 3 | 223 | 334 | — | 560 | |||||||
Cash and cash equivalents, end of period | $ | 75 | 165 | 300 | — | 540 | ||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 03, 2014 |
General business information | ||||
Dividend paid to noncontrolling interest | $42 | $45 | $29 | |
Cash dividends paid to Liberty | -1,765 | -1,005 | -1,817 | |
Live Programming - U.S. | ||||
General business information | ||||
Hours of distribution per day | 24 hours | |||
Days per year of programming | 364 days | |||
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 | |||
Live Programming - Japan | ||||
General business information | ||||
Hours of distribution per day | 24 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 | 17 hours | |||
Recorded Programming - CNRS | ||||
General business information | ||||
Hours of distribution per day | 7 hours | |||
Liberty | ||||
General business information | ||||
Cash dividends paid to Liberty | 1,000 | |||
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% | |||
Liberty Ventures Group | ||||
General business information | ||||
Cash dividends paid to Liberty | $970 | |||
HSN, Inc. | ||||
General business information | ||||
Parent ownership in equity investment | 38.00% |
Significant_Accounting_Policie3
Significant Accounting Policies Goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Beginning balance | $5,197 | $5,234 |
Exchange rate fluctuations | -106 | -37 |
Ending balance | 5,091 | 5,197 |
QVC-U.S. | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,190 | 4,190 |
Exchange rate fluctuations | 0 | 0 |
Ending balance | 4,190 | 4,190 |
QVC-Germany | ||
Goodwill [Roll Forward] | ||
Beginning balance | 348 | 334 |
Exchange rate fluctuations | -40 | 14 |
Ending balance | 308 | 348 |
QVC-Japan | ||
Goodwill [Roll Forward] | ||
Beginning balance | 288 | 349 |
Exchange rate fluctuations | -35 | -61 |
Ending balance | 253 | 288 |
QVC-U.K. | ||
Goodwill [Roll Forward] | ||
Beginning balance | 216 | 212 |
Exchange rate fluctuations | -13 | 4 |
Ending balance | 203 | 216 |
QVC-Italy | ||
Goodwill [Roll Forward] | ||
Beginning balance | 155 | 149 |
Exchange rate fluctuations | -18 | 6 |
Ending balance | $137 | $155 |
Significant_Accounting_Policie4
Significant Accounting Policies Other Details (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 01, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Cash equivalents | $245,000,000 | $342,000,000 | ||
Customer returns | 2,023,000,000 | 2,036,000,000 | 1,965,000,000 | |
Advertising expense | 92,000,000 | 89,000,000 | 91,000,000 | |
Derivative, notional amount | $3,100,000,000 | |||
Software Development [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years |
Significant_Accounting_Policie5
Significant Accounting Policies Reserve for Sales Returns (Details) (Allowance for Sales Returns [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Sales Returns [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance beginning of year | $106 | $90 | $85 |
Additions - charged to earnings | 1,253 | 1,296 | 1,222 |
Deductions | -1,250 | -1,280 | -1,217 |
Balance end of year | $109 | $106 | $90 |
Accounts_Receivable_Accounts_R
Accounts Receivable (Accounts Receivable) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Receivable, Net, Current [Abstract] | |||
Accounts receivable, gross | $1,287 | $1,194 | |
Less allowance for doubtful accounts | -91 | -83 | |
Accounts receivable, net | 1,196 | 1,111 | |
QVC Easy-Pay plan | |||
Accounts Receivable, Net, Current [Abstract] | |||
Accounts receivable, gross | 1,015 | 915 | |
Major credit card and other receivables | |||
Accounts Receivable, Net, Current [Abstract] | |||
Accounts receivable, gross | 272 | 279 | |
SG&A | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance income from company branded credit card issued by a financial institution | $80 | $63 | $65 |
Minimum | QVC Easy-Pay plan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of installments plan permits for customers | 2 | ||
Maximum | QVC Easy-Pay plan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of monthly installments billed after first installment | 5 |
Accounts_Receivable_Activity_i
Accounts Receivable (Activity in the Allowance for Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance beginning of year | $83 | $74 | $79 |
Additions- charged to expense | 92 | 81 | 75 |
Deductions- write-offs | -84 | -72 | -80 |
Balance end of year | $91 | $83 | $74 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
Property and Equipment [Line Items] | |||
Property and equipment disposals | $101 | ||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 1,910 | 2,025 | |
Less accumulated depreciation | -884 | -919 | |
Property and equipment, net | 1,026 | 1,106 | |
QVC-Italy | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment additions | 20 | ||
Leasehold improvements | QVC-Japan | |||
Property and Equipment, Net, by Type [Abstract] | |||
Total project cost and improvements | 220 | ||
Land | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 84 | 87 | |
Buildings and improvements | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 948 | 954 | |
Furniture and other equipment | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 417 | 429 | |
Broadcast equipment | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 105 | 107 | |
Computer equipment | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 145 | 204 | |
Transponders (note 9) | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 168 | 170 | |
Projects in progress | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $43 | $74 | |
Minimum | Buildings and improvements | |||
Property and Equipment [Line Items] | |||
Property and equipment useful life | 8 years | ||
Minimum | Furniture and other equipment | |||
Property and Equipment [Line Items] | |||
Property and equipment useful life | 2 years | ||
Minimum | Broadcast equipment | |||
Property and Equipment [Line Items] | |||
Property and equipment useful life | 3 years | ||
Minimum | Computer equipment | |||
Property and Equipment [Line Items] | |||
Property and equipment useful life | 2 years | ||
Minimum | Transponders (note 9) | |||
Property and Equipment [Line Items] | |||
Property and equipment useful life | 8 years | ||
Maximum | Buildings and improvements | |||
Property and Equipment [Line Items] | |||
Property and equipment useful life | 20 years | ||
Maximum | Furniture and other equipment | |||
Property and Equipment [Line Items] | |||
Property and equipment useful life | 8 years | ||
Maximum | Broadcast equipment | |||
Property and Equipment [Line Items] | |||
Property and equipment useful life | 5 years | ||
Maximum | Computer equipment | |||
Property and Equipment [Line Items] | |||
Property and equipment useful life | 4 years | ||
Maximum | Transponders (note 9) | |||
Property and Equipment [Line Items] | |||
Property and equipment useful life | 15 years |
Cable_and_Satellite_Television2
Cable and Satellite Television Distribution Rights, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Cable and satellite television distribution rights | $5,484 | $5,544 | |
Less accumulated amortization | 2,341 | 2,208 | |
Amortization | 452 | 431 | 400 |
Percentage of net sales | 5.00% | ||
Cable and satellite television distribution rights | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Cable and satellite television distribution rights | 2,308 | 2,324 | |
Less accumulated amortization | -1,847 | -1,700 | |
Cable and satellite television distribution rights, net | 461 | 624 | |
Acquired finite-lived intangible assets, weighted average useful life | 2 years 10 months 24 days | ||
Amortization | 185 | 177 | 163 |
Commission expense | $299 | $298 | $296 |
Cable_and_Satellite_Television3
Cable and Satellite Television Distribution Rights, Net (Future Amortization Expense) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 | $279 |
2016 | 248 |
2017 | 154 |
2018 | 9 |
2019 | 8 |
Cable and satellite television distribution rights | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 | 171 |
2016 | 165 |
2017 | 111 |
2018 | 6 |
2019 | $3 |
Other_Intangible_Assets_Net_Ot
Other Intangible Assets, Net (Other Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Period Increase (Decrease) | $80 | ||
Amortization of other intangible assets | 267 | 254 | 237 |
Gross cost | |||
Purchased and internally developed software | 568 | 615 | |
Affiliate and customer relationships | 2,428 | 2,450 | |
Debt origination fees | 60 | 51 | |
Trademarks (indefinite life) | 2,428 | 2,428 | |
Other intangible assets (excluding goodwill), gross | 5,484 | 5,544 | |
Accumulated amortization | |||
Purchased and internally developed software | -369 | -393 | |
Affiliate and customer relationships | -1,958 | -1,802 | |
Debt origination fees | -14 | -13 | |
Other intangible assets (excluding goodwill), accumulated amortization | -2,341 | -2,208 | |
Other intangible assets, net | |||
Purchased and internally developed software | 199 | 222 | |
Affiliate and customer relationships | 470 | 648 | |
Debt origination fees | 46 | 38 | |
Trademarks (indefinite life) | 2,428 | 2,428 | |
Other intangible assets (excluding goodwill), net | $3,143 | $3,336 | |
Software and Software Development Costs [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Remaining weighted average years | 2 years 3 months 18 days | ||
Customer Lists [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Remaining weighted average years | 2 years 9 months 18 days | ||
Debt [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Remaining weighted average years | 10 years | ||
Other Intangible Assets [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Remaining weighted average years | 3 years 1 month 6 days |
Other_Intangible_Assets_Net_Fu
Other Intangible Assets, Net (Future Amortization Expense) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 | $279 |
2016 | 248 |
2017 | 154 |
2018 | 9 |
2019 | $8 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ||
Accounts payable non-trade | $200 | $323 |
Income taxes | 137 | 126 |
Accrued compensation and benefits | 110 | 98 |
Allowance for sales returns | 109 | 106 |
Deferred revenue | 85 | 73 |
Sales and other taxes | 83 | 79 |
Accrued interest | 79 | 58 |
Other | 82 | 97 |
Accrued liabilities | $885 | $960 |
LongTerm_Debt_and_Interest_Rat2
Long-Term Debt and Interest Rate Swap Arrangements (Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 01, 2013 | Mar. 18, 2014 | Sep. 25, 2009 | Mar. 23, 2010 | Jul. 02, 2012 | Mar. 18, 2013 | Aug. 21, 2014 |
Debt Instrument [Line Items] | |||||||||
Derivative, notional amount | $3,100,000,000 | ||||||||
Debt and Capital Lease Obligations | 4,629,000,000 | 3,813,000,000 | |||||||
Less current portion | -9,000,000 | -13,000,000 | |||||||
Long-term portion of debt and capital lease obligations | 4,620,000,000 | 3,800,000,000 | |||||||
3.125% Senior Secured Notes due 2019, net of original issue discount | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | 399,000,000 | 0 | |||||||
Total debt | 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 and Capital Lease Obligations | 0 | 761,000,000 | |||||||
Total debt | 1,000,000,000 | ||||||||
Debt instrument interest rate stated percentage | 7.50% | 7.50% | |||||||
Debt issuance price percentage | 98.28% | ||||||||
7.375% Senior Secured Notes due 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | 500,000,000 | 500,000,000 | |||||||
Total debt | 500,000,000 | ||||||||
Debt instrument interest rate stated percentage | 7.38% | 7.38% | |||||||
5.125% Senior Secured Notes due 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | 500,000,000 | 500,000,000 | |||||||
Total debt | 500,000,000 | ||||||||
Debt instrument interest rate stated percentage | 5.13% | 5.13% | |||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | 750,000,000 | 750,000,000 | |||||||
Total debt | 750,000,000 | ||||||||
Debt instrument interest rate stated percentage | 4.38% | 4.38% | |||||||
Debt issuance price percentage | 99.97% | ||||||||
4.85% Senior Secured Notes due 2024, net of original issue discount | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | 600,000,000 | 0 | |||||||
Total debt | 600,000,000 | ||||||||
Debt instrument interest rate stated percentage | 4.85% | 4.85% | |||||||
Debt issuance price percentage | 99.93% | ||||||||
4.45% Senior Secured Notes due 2025, net of original issue discount | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | 599,000,000 | 0 | |||||||
Total debt | 600,000,000 | ||||||||
Debt instrument interest rate stated percentage | 4.45% | 4.45% | |||||||
Debt issuance price percentage | 99.86% | ||||||||
5.45% Senior Secured Notes due 2034, net of original issue discount | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | 399,000,000 | 0 | |||||||
Total debt | 400,000,000 | ||||||||
Debt instrument interest rate stated percentage | 5.45% | 5.45% | |||||||
Debt issuance price percentage | 99.78% | ||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | 300,000,000 | 300,000,000 | |||||||
Total debt | 300,000,000 | ||||||||
Debt instrument interest rate stated percentage | 5.95% | 5.95% | |||||||
Debt issuance price percentage | 99.97% | ||||||||
Senior secured credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | 508,000,000 | 922,000,000 | |||||||
Capital lease obligations | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | $74,000,000 | $80,000,000 |
LongTerm_Debt_and_Interest_Rat3
Long-Term Debt and Interest Rate Swap Arrangements (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 17, 2013 | Mar. 18, 2013 | Mar. 01, 2013 | Mar. 23, 2010 | Mar. 18, 2014 | Sep. 08, 2014 | Sep. 25, 2009 | Jul. 02, 2012 | Aug. 21, 2014 | |
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility maximum borrowing capacity | $2,000,000,000 | |||||||||||
Line of credit facility standby letter of credit | 250,000,000 | |||||||||||
Line of credit facility uncommitted loan | 1,000,000,000 | |||||||||||
Debt instrument lower range of basis spread on variable rate | 0.25% | |||||||||||
Debt instrument higher range of basis spread on variable rate | 2.00% | |||||||||||
Line of credit facility remaining borrowing capacity | 1,500,000,000 | |||||||||||
Line of credit facility interest rate at period end | 2.00% | |||||||||||
Derivative, notional amount | 3,100,000,000 | |||||||||||
Loss on extinguishment of debt | -48,000,000 | -57,000,000 | 0 | |||||||||
Debt weighted average interest rate | 4.70% | |||||||||||
Letters of credit outstanding amount | 18,000,000 | 26,000,000 | ||||||||||
7.125% Senior Secured Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 7.13% | |||||||||||
Extinguishment of debt amount | 376,000,000 | 124,000,000 | ||||||||||
Total debt | 500,000,000 | |||||||||||
Repurchase price of individual bonds including premium | 1,035.63 | 1,039.40 | ||||||||||
Face value of individual bonds repurchased | 1,000 | 1,000 | ||||||||||
3.125% Senior Secured Notes due 2019, net of original issue discount | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 3.13% | 3.13% | ||||||||||
Total debt | 400,000,000 | |||||||||||
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% | 7.50% | ||||||||||
Extinguishment of debt amount | 231,000,000 | |||||||||||
Total debt | 1,000,000,000 | |||||||||||
Repurchase price of individual bonds including premium | 1,120 | 1,042.05 | ||||||||||
Face value of individual bonds repurchased | 1,000 | 1,000 | ||||||||||
Debt issuance price percentage | 98.28% | |||||||||||
7.375% Senior Secured Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 7.38% | 7.38% | ||||||||||
Total debt | 500,000,000 | |||||||||||
5.125% Senior Secured Notes due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 5.13% | 5.13% | ||||||||||
Total debt | 500,000,000 | |||||||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 4.38% | 4.38% | ||||||||||
Total debt | 750,000,000 | |||||||||||
Debt issuance price percentage | 99.97% | |||||||||||
4.85% Senior Secured Notes due 2024, net of original issue discount | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 4.85% | 4.85% | ||||||||||
Total debt | 600,000,000 | |||||||||||
Debt issuance price percentage | 99.93% | |||||||||||
4.45% Senior Secured Notes due 2025, net of original issue discount | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 4.45% | 4.45% | ||||||||||
Total debt | 600,000,000 | |||||||||||
Debt issuance price percentage | 99.86% | |||||||||||
5.45% Senior Secured Notes due 2034, net of original issue discount | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 5.45% | 5.45% | ||||||||||
Total debt | 400,000,000 | |||||||||||
Debt issuance price percentage | 99.78% | |||||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 5.95% | 5.95% | ||||||||||
Total debt | $300,000,000 | |||||||||||
Debt issuance price percentage | 99.97% |
Leases_and_Transponder_Service2
Leases and Transponder Service Agreements (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Capital transponders | |||
2015 | $11 | ||
2016 | 10 | ||
2017 | 11 | ||
2018 | 12 | ||
2019 | 11 | ||
Thereafter | 26 | ||
Total | 81 | ||
Operating leases | |||
2015 | 15 | ||
2016 | 14 | ||
2017 | 14 | ||
2018 | 13 | ||
2019 | 12 | ||
Thereafter | 97 | ||
Total | 165 | ||
Capital transponder monthly lease expense | 1 | ||
Capital leases income statement depreciation expense | 13 | 12 | 11 |
Imputed interest on capital lease | 7 | ||
Operating leases rent expense net | $24 | $28 | $31 |
QVC-U.K. | |||
Operating leased assets | |||
Operating lease, term | 21 years |
Stock_Options_and_Other_ShareB2
Stock Options and Other Share-Based Awards (Stock Options Activity) (Details) (Liberty Incentive Plan, USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
LINTA | ||
Options | ||
Outstanding at beginning of the year (in shares) | 15,638,139 | |
Granted (in shares) | 1,819,559 | |
Exercised (in shares) | -3,784,111 | |
Forfeited (in shares) | -1,007,491 | |
Net effect of 2014 reattribution (in shares) | 512,995 | |
Outstanding at end of the year (in shares) | 13,179,091 | 15,638,139 |
Weighted average exercise price | ||
Outstanding at beginning of the year ( in dollars per share) | $17.01 | |
Granted (in dollars per share) | $26.90 | |
Exercised (in dollars per share) | $14.42 | |
Forfeited (in dollars per share) | $19.31 | |
Net effect of 2014 reattributioin (in dollars per share) | $16.36 | |
Outstanding at ending of the year ( in dollars per share) | $17.34 | $17.01 |
Additional Stock Option Disclosures | ||
Aggregate intrinsic value (000s) | $159,203 | $192,975 |
Weighted average remaining life (years) | 3 years 8 months 12 days | 4 years 4 months 24 days |
Exercisable at December 31, 2014 | ||
Options (in shares) | 7,325,843 | |
Weighted average exercise price (in dollars per share) | $14.94 | |
Aggregate intrinsic value (000s) | 106,078 | |
Weighted average remaining life (years) | 2 years 10 months 24 days | |
LVNTA | ||
Options | ||
Outstanding at beginning of the year (in shares) | 441,212 | |
Granted (in shares) | 0 | |
Exercised (in shares) | -106,709 | |
Forfeited (in shares) | 0 | |
Adjustment for tripAdvisor holdings spin-off (in shares) | 6,736 | |
Net effect of 2014 reattribution (in shares) | 612,138 | |
Outstanding at end of the year (in shares) | 953,377 | 441,212 |
Weighted average exercise price | ||
Outstanding at beginning of the year ( in dollars per share) | $29.40 | |
Granted (in dollars per share) | $0 | |
Exercised (in dollars per share) | $16.02 | |
Forfeited (in dollars per share) | $0 | |
Adjustment for tripadvisor holdings spin-off (in dollars per share) | $14.86 | |
Net effect of 2014 reattributioin (in dollars per share) | $22.31 | |
Outstanding at ending of the year ( in dollars per share) | $19.51 | $29.40 |
Additional Stock Option Disclosures | ||
Aggregate intrinsic value (000s) | 17,361 | 14,072 |
Weighted average remaining life (years) | 2 years 9 months 18 days | 3 years 7 months 6 days |
Exercisable at December 31, 2014 | ||
Options (in shares) | 597,523 | |
Weighted average exercise price (in dollars per share) | $19.70 | |
Aggregate intrinsic value (000s) | $10,767 | |
Weighted average remaining life (years) | 2 years 7 months 6 days |
Stock_Options_and_Other_ShareB3
Stock Options and Other Share-Based Awards (Stock Options Valuations Assumptions) (Details) (Liberty Incentive Plan, Stock options) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
LINTA | |||
BlackbScholes option pricing model valuation assumptions | |||
Expected volatility | 38.70% | 38.26% | 41.90% |
Expected term (years) | 6 years 3 months 18 days | 6 years 2 months 12 days | 5 years 2 months 12 days |
Risk free interest rate | 2.00% | 1.10% | 0.80% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
LVNTA | |||
BlackbScholes option pricing model valuation assumptions | |||
Expected volatility | 0.00% | 0.00% | 49.90% |
Expected term (years) | 4 years 10 months 24 days | ||
Risk free interest rate | 0.00% | 0.00% | 0.60% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock_Options_and_Other_ShareB4
Stock Options and Other Share-Based Awards (Restricted Stock Activity) (Details) (Liberty Incentive Plan, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
LINTA | |
Restricted Shares | |
Outstanding at beginning of the year (in shares) | 1,214,462 |
Granted (in shares) | 328,887 |
Lapsed (in shares) | -460,069 |
Forfeited (in shares) | -48,154 |
Outstanding at end of the year (in shares) | 1,035,126 |
Weighted average grant date fair value | |
Outstanding at beginning of the year (in dollars per share) | $17.62 |
Granted (in dollars per share) | $24.86 |
Lapsed (in dollars per share) | $14.79 |
Forfeited (in dollars per share) | $17.79 |
Outstanding at end of the year (in dollars per share) | $19.29 |
LVNTA | |
Restricted Shares | |
Outstanding at beginning of the year (in shares) | 64,158 |
Granted (in shares) | 0 |
Lapsed (in shares) | -34,718 |
Forfeited (in shares) | -2,445 |
Net effect of 2014 reattribution (in shares) | 146,798 |
Outstanding at end of the year (in shares) | 173,793 |
Weighted average grant date fair value | |
Outstanding at beginning of the year (in dollars per share) | $19.34 |
Granted (in dollars per share) | $0 |
Lapsed (in dollars per share) | $9.01 |
Forfeited (in dollars per share) | $14.98 |
Net effect of 2014 reattribution (in dollars per share) | $23.13 |
Outstanding at end of the year (in dollars per share) | $22.13 |
Stock_Options_and_Other_ShareB5
Stock Options and Other Share-Based Awards (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Aug. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
tracking-stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $44 | $38 | $34 | |
Liberty Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of options exercised during period | 54 | 37 | 97 | |
Unrecognized compensation cost related to options | 34 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 16 | 15 | 9 | |
Liberty Incentive Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award term | 7 years | |||
Award vesting period | 4 years | |||
Award vesting period in equal semi-annual tranches | 8 | |||
Forfeiture rate assumed in stock option valuations (annualized) | 10.00% | |||
Stock-based compensation expense | 36 | 31 | 29 | |
Unrecognized compensation cost, period for recognition | 3 years 9 months 18 days | |||
Liberty Incentive Plan | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 8 | 7 | 5 | |
Unrecognized compensation cost, period for recognition | 1 year 1 month 6 days | |||
Unrecognized compensation cost related to restricted stock | $14 | |||
Liberty Incentive Plan | LINTA | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of tracking stocks after the split | 2 | |||
Tracking stock conversion ratio, subsidiary to parent (for each subsidiary share issued) | 20 | |||
Weighted average grant date fair value of options granted during period | $11.16 | $8.16 | $6.66 | |
Liberty Incentive Plan | LINTA | Option Exchange | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value of options granted during period | $6.94 | |||
Liberty Incentive Plan | LVNTA | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Tracking stock conversion ratio, subsidiary to parent (for each subsidiary share issued) | 1 | |||
Weighted average grant date fair value of options granted during period | $15.22 | |||
Liberty Incentive Plan | LVNTA | Option Exchange | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value of options granted during period | $25.69 |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
U.S. federal | $396 | $361 | $369 |
State and local | 28 | 22 | 23 |
Foreign jurisdiction | 132 | 78 | 136 |
Total | 556 | 461 | 528 |
Deferred: | |||
U.S. federal | -182 | -107 | -121 |
State and local | -15 | -7 | -7 |
Foreign jurisdiction | -5 | 6 | -6 |
Total | -202 | -108 | -134 |
Total income tax expense | $354 | $353 | $394 |
Income_Taxes_Pretax_Income_Dom
Income Taxes (Pre-tax Income, Domestic and Foreign) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Consolidated pre-tax income | $987 | $986 | $1,081 |
QVC-U.S. | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
U.S. pre-tax income | 827 | 824 | 865 |
QVC-Germany | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Foreign pre-tax income | 16 | 18 | 29 |
QVC-Japan | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Foreign pre-tax income | 146 | 181 | 253 |
QVC-U.K. | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Foreign pre-tax income | 19 | 1 | -17 |
QVC-Italy | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Foreign pre-tax income | -15 | -38 | -49 |
QVC-France | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Foreign pre-tax income | ($6) | $0 | $0 |
Income_Taxes_Effective_Income_
Income Taxes ( Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Provision at statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 0.90% | 0.70% | 1.00% |
Foreign taxes | 0.60% | 0.60% | 1.30% |
Foreign earnings repatriation | -0.30% | -0.40% | -1.10% |
Valuation allowance | 0.20% | 0.00% | 0.00% |
Permanent differences | -0.50% | 0.00% | 0.10% |
Other, net | 0.00% | -0.10% | 0.10% |
Total income tax expense | 35.90% | 35.80% | 36.40% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts | $33 | $32 |
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 | 33 | 36 |
Allowance for sales returns | 41 | 39 |
Deferred compensation | 43 | 36 |
Unrecognized federal and state tax benefits | 63 | 29 |
Accrued liabilities | 82 | 25 |
Other | 27 | 36 |
Subtotal | 322 | 233 |
Valuation allowance | -3 | -1 |
Total deferred tax assets | 319 | 232 |
Deferred tax liabilities: | ||
Depreciation and amortization | -1,222 | -1,349 |
Cumulative translation of foreign currencies | -8 | -47 |
Total deferred tax liabilities | -1,230 | -1,396 |
Net deferred tax liability | ($911) | ($1,164) |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at January 1, 2014 | $89 |
Increases related to prior year tax positions | 27 |
Decreases related to prior year tax positions | -10 |
Increases related to current year tax positions | 17 |
Balance at December 31, 2014 | $123 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Cash dividends paid to parent company for taxes | $375 | $385 | $338 |
Unrecognized tax benefits that would impact effective tax rate net | 59 | ||
Unrecognized tax benefits, federal tax benefits portion | 32 | ||
Unrecognized tax benefits, net decreases expected during 2014 | 23 | ||
United States | |||
Income Tax Contingency [Line Items] | |||
Income tax benefit recorded on undistributed foreign earnings | 3 | 3 | 12 |
Liberty | Tax agreement | |||
Income Tax Contingency [Line Items] | |||
Capital contribution paid to parent company for taxes | 29 | ||
Cash dividends paid to parent company for taxes | 45 | 47 | |
Current tax payments due to related parties | $52 | $78 |
Business_Acquisitions_and_Inve1
Business Acquisitions and Investments in Affiliates (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Business acquisition, cost of acquired entity, cash paid | $95 | |
CNR Home Shopping Co., Ltd. | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% |
Assets_and_Liabilities_Measure2
Assets and Liabilities Measured at Fair Value (Details) (Recurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash equivalents | $245 | $342 |
Long-term liabilities: | ||
Debt (note 8) | 4,626 | 3,783 |
Level 1 | ||
Current assets: | ||
Cash equivalents | 245 | 342 |
Level 2 | ||
Long-term liabilities: | ||
Debt (note 8) | $4,626 | $3,783 |
Information_about_QVCs_Operati2
Information about QVC's Operating Segments (Revenue and Adjusted OIBDA by Segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | |||
Segment Reporting [Abstract] | |||
Number of operating segments | 6 | ||
Segment Reporting Information [Line Items] | |||
Net revenue | $8,801 | $8,623 | $8,516 |
Adjusted OIBDA | 1,910 | 1,841 | 1,828 |
QVC-U.S. | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 6,055 | 5,844 | 5,585 |
Adjusted OIBDA | 1,429 | 1,352 | 1,292 |
QVC-Germany | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 970 | 971 | 956 |
Adjusted OIBDA | 174 | 173 | 179 |
QVC-Japan | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 908 | 1,024 | 1,247 |
Adjusted OIBDA | 176 | 212 | 279 |
QVC-U.K. | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 730 | 657 | 641 |
Adjusted OIBDA | 141 | 118 | 104 |
QVC-Italy | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 138 | 127 | 87 |
Adjusted OIBDA | -4 | -14 | -26 |
QVC-France | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 0 | 0 | 0 |
Adjusted OIBDA | ($6) | $0 | $0 |
Information_about_QVCs_Operati3
Information about QVC's Operating Segments (Depreciation/Amortization by Segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Depreciation | $135 | $127 | $126 |
Amortization | 452 | 431 | 400 |
QVC-U.S. | |||
Segment Reporting Information [Line Items] | |||
Depreciation | 56 | 55 | 51 |
Amortization | 391 | 362 | 338 |
QVC-Germany | |||
Segment Reporting Information [Line Items] | |||
Depreciation | 33 | 30 | 31 |
Amortization | 36 | 38 | 33 |
QVC-Japan | |||
Segment Reporting Information [Line Items] | |||
Depreciation | 19 | 23 | 16 |
Amortization | 9 | 9 | 10 |
QVC-U.K. | |||
Segment Reporting Information [Line Items] | |||
Depreciation | 16 | 12 | 21 |
Amortization | 14 | 14 | 12 |
QVC-Italy | |||
Segment Reporting Information [Line Items] | |||
Depreciation | 11 | 7 | 7 |
Amortization | $2 | $8 | $7 |
Information_about_QVCs_Operati4
Information about QVC's Operating Segments (Total Assets and CAPEX by Segment) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ||
Assets | $12,476 | $13,056 |
Capital expenditures | 182 | 211 |
QVC-U.S. | ||
Segment Reporting Information [Line Items] | ||
Assets | 10,133 | 10,322 |
Capital expenditures | 141 | 123 |
QVC-Germany | ||
Segment Reporting Information [Line Items] | ||
Assets | 915 | 1,109 |
Capital expenditures | 10 | 28 |
QVC-Japan | ||
Segment Reporting Information [Line Items] | ||
Assets | 644 | 732 |
Capital expenditures | 2 | 16 |
QVC-U.K. | ||
Segment Reporting Information [Line Items] | ||
Assets | 537 | 613 |
Capital expenditures | 16 | 16 |
QVC-Italy | ||
Segment Reporting Information [Line Items] | ||
Assets | 245 | 280 |
Capital expenditures | 12 | 28 |
QVC-France | ||
Segment Reporting Information [Line Items] | ||
Assets | 2 | 0 |
Capital expenditures | $1 | $0 |
Information_about_QVCs_Operati5
Information about QVC's Operating Segments (Long-lived Assets by Segment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | $1,026 | $1,106 |
QVC-U.S. | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | 463 | 448 |
QVC-Germany | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | 209 | 244 |
QVC-Japan | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | 176 | 220 |
QVC-U.K. | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | 120 | 129 |
QVC-Italy | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | 57 | 65 |
QVC-France | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | $1 | $0 |
Information_about_QVCs_Operati6
Information about QVC's Operating Segments (Reconciliation of Adjusted OIBDA to Income before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting [Abstract] | |||
Adjusted OIBDA | $1,910 | $1,841 | $1,828 |
Stock-based compensation | -44 | -38 | -34 |
Depreciation and amortization | -587 | -558 | -526 |
Equity in losses of investee | -8 | -4 | -4 |
Gains on financial instruments | 0 | 15 | 48 |
Interest expense, net | -239 | -214 | -233 |
Foreign currency gain | 3 | 1 | 2 |
Loss on extinguishment of debt | -48 | -57 | 0 |
Income before income taxes | $987 | $986 | $1,081 |
Other_Comprehensive_Income_Acc
Other Comprehensive Income (Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign currency translation adjustments | |||
Beginning balance | $139 | $186 | $194 |
Other comprehensive loss attributable to QVC, Inc. stockholder | -178 | -47 | -8 |
Ending balance | -39 | 139 | 186 |
AOCI | |||
Beginning balance | 139 | 186 | 194 |
Other comprehensive loss attributable to QVC, Inc. stockholder | -178 | -47 | -8 |
Ending balance | ($39) | $139 | $186 |
Other_Comprehensive_Income_Com
Other Comprehensive Income (Component of Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency transaction and translation gain (loss) before tax | ($240) | ($64) | ($48) |
Tax (expense) benefit from foreign currency translation gain (loss) | 49 | -8 | 21 |
Foreign currency translation adjustments, net-of-tax | ($191) | ($72) | ($27) |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Cash contributions to defined contribution plans | $23 | $19 | $16 |
Subsequent_Events_Details
Subsequent Events (Details) (Liberty, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Liberty | |
Subsequent Event [Line Items] | |
Subsequent event dividend to parent | $58 |
GuarantorNonGuarantor_Subsidia2
Guarantor/Non-Guarantor Subsidiary Financial Information (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | |
Intercompany Gain | $20 |
Subsidiary Guarantors, Ownership Percentage | 100.00% |
GuarantorNonGuarantor_Subsidia3
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Financial Position) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents, beginning of period | $347 | $457 | $540 | $560 |
Restricted cash | 12 | 14 | ||
Accounts receivable, less allowance for doubtful accounts of $91 million at December 31, 2014 and $83 million at December 31, 2013 | 1,196 | 1,111 | ||
Inventories | 882 | 931 | ||
Deferred income taxes | 210 | 162 | ||
Prepaid expenses | 50 | 47 | ||
Total current assets | 2,697 | 2,722 | ||
Property and equipment, net of accumulated depreciation of $884 million at December 31, 2014 and $919 million at December 31, 2013 | 1,026 | 1,106 | ||
Cable and satellite television distribution rights, net | 461 | 624 | ||
Goodwill | 5,091 | 5,197 | 5,234 | |
Other intangible assets, net | 3,143 | 3,336 | ||
Other noncurrent assets | 58 | 71 | ||
Investments in subsidiaries | 0 | 0 | ||
Total assets | 12,476 | 13,056 | ||
Current liabilities: | ||||
Current portion of debt and capital lease obligations | 9 | 13 | ||
Accounts payable-trade | 629 | 494 | ||
Accrued liabilities | 885 | 960 | ||
Intercompany accounts payable (receivable) | 0 | 0 | ||
Total current liabilities | 1,523 | 1,467 | ||
Long-term portion of debt and capital lease obligations | 4,620 | 3,800 | ||
Deferred compensation | 17 | 14 | ||
Deferred income taxes | 1,121 | 1,326 | ||
Other long-term liabilities | 149 | 108 | ||
Total liabilities | 7,430 | 6,715 | ||
QVC, Inc. stockholder's equity: | ||||
QVC, Inc. stockholder's equity | 4,943 | 6,222 | ||
Noncontrolling interest | 103 | 119 | ||
Total equity | 5,046 | 6,341 | 6,834 | 8,019 |
Total liabilities and equity | 12,476 | 13,056 | ||
Parent issuer- QVC, Inc. | ||||
Current assets: | ||||
Cash and cash equivalents, beginning of period | 2 | 78 | 75 | 3 |
Restricted cash | 10 | 11 | ||
Accounts receivable, less allowance for doubtful accounts of $91 million at December 31, 2014 and $83 million at December 31, 2013 | 909 | 816 | ||
Inventories | 680 | 684 | ||
Deferred income taxes | 192 | 146 | ||
Prepaid expenses | 25 | 20 | ||
Total current assets | 1,818 | 1,755 | ||
Property and equipment, net of accumulated depreciation of $884 million at December 31, 2014 and $919 million at December 31, 2013 | 273 | 265 | ||
Cable and satellite television distribution rights, net | 0 | 0 | ||
Goodwill | 4,184 | 4,169 | ||
Other intangible assets, net | 1,023 | 1,128 | ||
Other noncurrent assets | 1 | 8 | ||
Investments in subsidiaries | 4,681 | 4,894 | ||
Total assets | 11,980 | 12,219 | ||
Current liabilities: | ||||
Current portion of debt and capital lease obligations | 2 | 2 | ||
Accounts payable-trade | 420 | 336 | ||
Accrued liabilities | 282 | 393 | ||
Intercompany accounts payable (receivable) | 1,384 | 1,019 | ||
Total current liabilities | 2,088 | 1,750 | ||
Long-term portion of debt and capital lease obligations | 4,565 | 3,745 | ||
Deferred compensation | 16 | 13 | ||
Deferred income taxes | 269 | 399 | ||
Other long-term liabilities | 99 | 90 | ||
Total liabilities | 7,037 | 5,997 | ||
QVC, Inc. stockholder's equity: | ||||
QVC, Inc. stockholder's equity | 4,943 | 6,222 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 4,943 | 6,222 | ||
Total liabilities and equity | 11,980 | 12,219 | ||
Combined subsidiary guarantors | ||||
Current assets: | ||||
Cash and cash equivalents, beginning of period | 123 | 133 | 165 | 223 |
Restricted cash | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts of $91 million at December 31, 2014 and $83 million at December 31, 2013 | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Total current assets | 123 | 133 | ||
Property and equipment, net of accumulated depreciation of $884 million at December 31, 2014 and $919 million at December 31, 2013 | 68 | 67 | ||
Cable and satellite television distribution rights, net | 388 | 510 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 2,051 | 2,050 | ||
Other noncurrent assets | 0 | 0 | ||
Investments in subsidiaries | 1,386 | 1,628 | ||
Total assets | 4,016 | 4,388 | ||
Current liabilities: | ||||
Current portion of debt and capital lease obligations | 0 | 0 | ||
Accounts payable-trade | 0 | 0 | ||
Accrued liabilities | 143 | 96 | ||
Intercompany accounts payable (receivable) | -921 | -879 | ||
Total current liabilities | -778 | -783 | ||
Long-term portion of debt and capital lease obligations | 0 | 0 | ||
Deferred compensation | 0 | 0 | ||
Deferred income taxes | 877 | 923 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 99 | 140 | ||
QVC, Inc. stockholder's equity: | ||||
QVC, Inc. stockholder's equity | 3,917 | 4,248 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 3,917 | 4,248 | ||
Total liabilities and equity | 4,016 | 4,388 | ||
Combined non-guarantor subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents, beginning of period | 222 | 246 | 300 | 334 |
Restricted cash | 2 | 3 | ||
Accounts receivable, less allowance for doubtful accounts of $91 million at December 31, 2014 and $83 million at December 31, 2013 | 287 | 295 | ||
Inventories | 202 | 247 | ||
Deferred income taxes | 18 | 16 | ||
Prepaid expenses | 25 | 27 | ||
Total current assets | 756 | 834 | ||
Property and equipment, net of accumulated depreciation of $884 million at December 31, 2014 and $919 million at December 31, 2013 | 685 | 774 | ||
Cable and satellite television distribution rights, net | 73 | 114 | ||
Goodwill | 907 | 1,028 | ||
Other intangible assets, net | 69 | 158 | ||
Other noncurrent assets | 57 | 63 | ||
Investments in subsidiaries | 0 | 0 | ||
Total assets | 2,547 | 2,971 | ||
Current liabilities: | ||||
Current portion of debt and capital lease obligations | 7 | 11 | ||
Accounts payable-trade | 209 | 158 | ||
Accrued liabilities | 460 | 471 | ||
Intercompany accounts payable (receivable) | -463 | -140 | ||
Total current liabilities | 213 | 500 | ||
Long-term portion of debt and capital lease obligations | 55 | 55 | ||
Deferred compensation | 1 | 1 | ||
Deferred income taxes | -25 | 4 | ||
Other long-term liabilities | 50 | 18 | ||
Total liabilities | 294 | 578 | ||
QVC, Inc. stockholder's equity: | ||||
QVC, Inc. stockholder's equity | 2,150 | 2,274 | ||
Noncontrolling interest | 103 | 119 | ||
Total equity | 2,253 | 2,393 | ||
Total liabilities and equity | 2,547 | 2,971 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents, beginning of period | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts of $91 million at December 31, 2014 and $83 million at December 31, 2013 | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment, net of accumulated depreciation of $884 million at December 31, 2014 and $919 million at December 31, 2013 | 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 | -6,067 | -6,522 | ||
Total assets | -6,067 | -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 | ||
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 | -6,067 | -6,522 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | -6,067 | -6,522 | ||
Total liabilities and equity | ($6,067) | ($6,522) |
GuarantorNonGuarantor_Subsidia4
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Operations) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net revenue | $8,801 | $8,623 | $8,516 |
Cost of goods sold | 5,547 | 5,465 | 5,419 |
Gross profit | 3,254 | 3,158 | 3,097 |
Operating expenses: | |||
Operating | 753 | 740 | 715 |
Selling, general and administrative, including stock-based compensation | 635 | 615 | 588 |
Depreciation | 135 | 127 | 126 |
Amortization | 452 | 431 | 400 |
Operating expenses | 1,975 | 1,913 | 1,829 |
Operating income | 1,279 | 1,245 | 1,268 |
Other (expense) income: | |||
Equity in losses of investee | -8 | -4 | -4 |
Gains on financial instruments | 0 | 15 | 48 |
Interest expense, net | -239 | -214 | -233 |
Foreign currency gain | 3 | 1 | 2 |
Loss on extinguishment of debt | -48 | -57 | 0 |
Intercompany (expense) interest income | 0 | 0 | 0 |
Nonoperating (expense) income | -292 | -259 | -187 |
Income before income taxes | 987 | 986 | 1,081 |
Income tax expense | -354 | -353 | -394 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 |
Net income | 633 | 633 | 687 |
Less net income attributable to the noncontrolling interest | -39 | -45 | -63 |
Net income attributable to QVC, Inc. stockholder | 594 | 588 | 624 |
Parent issuer- QVC, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net revenue | 6,198 | 5,979 | 5,709 |
Cost of goods sold | 3,907 | 3,804 | 3,644 |
Gross profit | 2,291 | 2,175 | 2,065 |
Operating expenses: | |||
Operating | 343 | 283 | 254 |
Selling, general and administrative, including stock-based compensation | 1,081 | 1,028 | 1,004 |
Depreciation | 39 | 38 | 35 |
Amortization | 223 | 204 | 204 |
Operating expenses | 1,686 | 1,553 | 1,497 |
Operating income | 605 | 622 | 568 |
Other (expense) income: | |||
Equity in losses of investee | 0 | 0 | 0 |
Gains on financial instruments | 12 | 48 | |
Interest expense, net | -230 | -214 | -233 |
Foreign currency gain | 10 | -13 | -10 |
Loss on extinguishment of debt | -48 | -57 | |
Intercompany (expense) interest income | -22 | -16 | -13 |
Nonoperating (expense) income | -290 | -288 | -208 |
Income before income taxes | 315 | 334 | 360 |
Income tax expense | -73 | -119 | -116 |
Equity in earnings of subsidiaries, net of tax | 391 | 418 | 443 |
Net income | 633 | 633 | 687 |
Less net income attributable to the noncontrolling interest | -39 | -45 | -63 |
Net income attributable to QVC, Inc. stockholder | 594 | 588 | 624 |
Combined subsidiary guarantors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net revenue | 920 | 893 | 865 |
Cost of goods sold | 108 | 107 | 116 |
Gross profit | 812 | 786 | 749 |
Operating expenses: | |||
Operating | 269 | 267 | 238 |
Selling, general and administrative, including stock-based compensation | 1 | 0 | 1 |
Depreciation | 5 | 6 | 4 |
Amortization | 153 | 146 | 130 |
Operating expenses | 428 | 419 | 373 |
Operating income | 384 | 367 | 376 |
Other (expense) income: | |||
Equity in losses of investee | 0 | 0 | 0 |
Gains on financial instruments | 0 | 0 | |
Interest expense, net | 0 | 0 | 0 |
Foreign currency gain | -3 | 0 | 4 |
Loss on extinguishment of debt | 0 | 0 | |
Intercompany (expense) interest income | 51 | 51 | 51 |
Nonoperating (expense) income | 48 | 51 | 55 |
Income before income taxes | 432 | 418 | 431 |
Income tax expense | -135 | -132 | -141 |
Equity in earnings of subsidiaries, net of tax | 25 | 76 | 93 |
Net income | 322 | 362 | 383 |
Less net income attributable to the noncontrolling interest | 0 | 0 | 0 |
Net income attributable to QVC, Inc. stockholder | 322 | 362 | 383 |
Combined non-guarantor subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net revenue | 2,992 | 2,977 | 3,148 |
Cost of goods sold | 1,807 | 1,831 | 1,941 |
Gross profit | 1,185 | 1,146 | 1,207 |
Operating expenses: | |||
Operating | 376 | 370 | 395 |
Selling, general and administrative, including stock-based compensation | 352 | 356 | 335 |
Depreciation | 91 | 83 | 87 |
Amortization | 76 | 81 | 66 |
Operating expenses | 895 | 890 | 883 |
Operating income | 290 | 256 | 324 |
Other (expense) income: | |||
Equity in losses of investee | -8 | -4 | -4 |
Gains on financial instruments | 3 | 0 | |
Interest expense, net | -9 | 0 | 0 |
Foreign currency gain | -4 | 14 | 8 |
Loss on extinguishment of debt | 0 | 0 | |
Intercompany (expense) interest income | -9 | -35 | -38 |
Nonoperating (expense) income | -30 | -22 | -34 |
Income before income taxes | 260 | 234 | 290 |
Income tax expense | -146 | -102 | -137 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 |
Net income | 114 | 132 | 153 |
Less net income attributable to the noncontrolling interest | -39 | -45 | -63 |
Net income attributable to QVC, Inc. stockholder | 75 | 87 | 90 |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net revenue | -1,309 | -1,226 | -1,206 |
Cost of goods sold | -275 | -277 | -282 |
Gross profit | -1,034 | -949 | -924 |
Operating expenses: | |||
Operating | -235 | -180 | -172 |
Selling, general and administrative, including stock-based compensation | -799 | -769 | -752 |
Depreciation | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 |
Operating expenses | -1,034 | -949 | -924 |
Operating income | 0 | 0 | 0 |
Other (expense) income: | |||
Equity in losses of investee | 0 | 0 | 0 |
Gains on financial instruments | 0 | 0 | |
Interest expense, net | 0 | 0 | 0 |
Foreign currency gain | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | |
Intercompany (expense) interest income | -20 | 0 | 0 |
Nonoperating (expense) income | -20 | 0 | 0 |
Income before income taxes | -20 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | -416 | -494 | -536 |
Net income | -436 | -494 | -536 |
Less net income attributable to the noncontrolling interest | 39 | 45 | 63 |
Net income attributable to QVC, Inc. stockholder | ($397) | ($449) | ($473) |
GuarantorNonGuarantor_Subsidia5
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net income | $633 | $633 | $687 |
Foreign currency translation adjustments | -191 | -72 | -27 |
Total comprehensive income (loss) | 442 | 561 | 660 |
Comprehensive income attributable to noncontrolling interest | -26 | -20 | -44 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | 416 | 541 | 616 |
Parent issuer- QVC, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 633 | 633 | 687 |
Foreign currency translation adjustments | -191 | -72 | -27 |
Total comprehensive income (loss) | 442 | 561 | 660 |
Comprehensive income attributable to noncontrolling interest | -26 | -20 | -44 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | 416 | 541 | 616 |
Combined subsidiary guarantors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 322 | 362 | 383 |
Foreign currency translation adjustments | 0 | 0 | 0 |
Total comprehensive income (loss) | 322 | 362 | 383 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | 322 | 362 | 383 |
Combined non-guarantor subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 114 | 132 | 153 |
Foreign currency translation adjustments | -191 | -72 | -27 |
Total comprehensive income (loss) | -77 | 60 | 126 |
Comprehensive income attributable to noncontrolling interest | -26 | -20 | -44 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | -103 | 40 | 82 |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | -436 | -494 | -536 |
Foreign currency translation adjustments | 191 | 72 | 27 |
Total comprehensive income (loss) | -245 | -422 | -509 |
Comprehensive income attributable to noncontrolling interest | 26 | 20 | 44 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | ($219) | ($402) | ($465) |
GuarantorNonGuarantor_Subsidia6
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Cash Flow) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net cash provided by operating activities | $1,213 | $973 | $1,206 |
Investing activities: | |||
Capital expenditures, net | -182 | -211 | -246 |
Expenditures for cable and satellite television distribution rights, net | -31 | -58 | -2 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | 0 | 0 | -95 |
Decreases in restricted cash | 2 | 1 | 2 |
Changes in other noncurrent assets | 0 | -2 | -3 |
Intercompany investing activities | 0 | 0 | 0 |
Net cash used in investing activities | -211 | -270 | -344 |
Financing activities: | |||
Principal payments of debt and capital lease obligations | -3,049 | -2,387 | -1,246 |
Principal borrowings of debt from senior secured credit facility | 1,852 | 1,674 | 1,717 |
Proceeds from issuance of senior secured notes, net of original issue discount | 1,997 | 1,050 | 500 |
Payment of debt origination fees | -24 | -16 | -7 |
Payment of bond premium fees | -32 | -46 | 0 |
Other financing activities | -3 | 12 | 20 |
Dividends paid to Liberty | -1,765 | -1,005 | -1,817 |
Dividends paid to noncontrolling interest | -42 | -45 | -29 |
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | 0 |
Intercompany financing activities | 0 | 0 | 0 |
Net cash used in financing activities | -1,066 | -763 | -862 |
Effect of foreign exchange rate changes on cash and cash equivalents | -46 | -23 | -20 |
Net decrease in cash and cash equivalents | -110 | -83 | -20 |
Cash and cash equivalents, beginning of period | 457 | 540 | 560 |
Cash and cash equivalents, end of period | 347 | 457 | 540 |
Parent issuer- QVC, Inc. | |||
Operating activities: | |||
Net cash provided by operating activities | 349 | 379 | 462 |
Investing activities: | |||
Capital expenditures, net | -160 | -106 | -76 |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 | 0 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | 0 | ||
Decreases in restricted cash | 1 | 2 | 2 |
Changes in other noncurrent assets | -1 | -3 | |
Intercompany investing activities | 607 | 368 | 443 |
Net cash used in investing activities | 448 | 263 | 366 |
Financing activities: | |||
Principal payments of debt and capital lease obligations | -3,039 | -2,375 | -1,237 |
Principal borrowings of debt from senior secured credit facility | 1,852 | 1,674 | 1,717 |
Proceeds from issuance of senior secured notes, net of original issue discount | 1,997 | 1,050 | 500 |
Payment of debt origination fees | -24 | -16 | -7 |
Payment of bond premium fees | -32 | -46 | |
Other financing activities | -3 | 12 | 20 |
Dividends paid to Liberty | -1,765 | -1,005 | -1,817 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 |
Net short-term intercompany debt borrowings (repayments) | 365 | 190 | 214 |
Intercompany financing activities | -224 | -123 | -146 |
Net cash used in financing activities | -873 | -639 | -756 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net decrease in cash and cash equivalents | -76 | 3 | 72 |
Cash and cash equivalents, beginning of period | 78 | 75 | 3 |
Cash and cash equivalents, end of period | 2 | 78 | 75 |
Combined subsidiary guarantors | |||
Operating activities: | |||
Net cash provided by operating activities | 459 | 389 | 412 |
Investing activities: | |||
Capital expenditures, net | -7 | -8 | -5 |
Expenditures for cable and satellite television distribution rights, net | -31 | -56 | -1 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | 0 | ||
Decreases in restricted cash | 0 | 0 | 0 |
Changes in other noncurrent assets | 0 | 0 | |
Intercompany investing activities | 267 | 277 | 265 |
Net cash used in investing activities | 229 | 213 | 259 |
Financing activities: | |||
Principal payments of debt and capital lease obligations | 0 | 0 | 0 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | 0 |
Payment of debt origination fees | 0 | 0 | 0 |
Payment of bond premium fees | 0 | 0 | |
Other financing activities | 0 | 0 | 0 |
Dividends paid to Liberty | 0 | 0 | 0 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 |
Net short-term intercompany debt borrowings (repayments) | -42 | -63 | -59 |
Intercompany financing activities | -656 | -571 | -670 |
Net cash used in financing activities | -698 | -634 | -729 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net decrease in cash and cash equivalents | -10 | -32 | -58 |
Cash and cash equivalents, beginning of period | 133 | 165 | 223 |
Cash and cash equivalents, end of period | 123 | 133 | 165 |
Combined non-guarantor subsidiaries | |||
Operating activities: | |||
Net cash provided by operating activities | 405 | 205 | 332 |
Investing activities: | |||
Capital expenditures, net | 5 | -97 | -165 |
Expenditures for cable and satellite television distribution rights, net | 0 | -2 | -1 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | -95 | ||
Decreases in restricted cash | 1 | -1 | 0 |
Changes in other noncurrent assets | -1 | 0 | |
Intercompany investing activities | 0 | 0 | 0 |
Net cash used in investing activities | 6 | -101 | -261 |
Financing activities: | |||
Principal payments of debt and capital lease obligations | -10 | -12 | -9 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | 0 |
Payment of debt origination fees | 0 | 0 | 0 |
Payment of bond premium fees | 0 | 0 | |
Other financing activities | 0 | 0 | 0 |
Dividends paid to Liberty | 0 | 0 | 0 |
Dividends paid to noncontrolling interest | -42 | -45 | -29 |
Net short-term intercompany debt borrowings (repayments) | -323 | -127 | -155 |
Intercompany financing activities | -14 | 49 | 108 |
Net cash used in financing activities | -389 | -135 | -85 |
Effect of foreign exchange rate changes on cash and cash equivalents | -46 | -23 | -20 |
Net decrease in cash and cash equivalents | -24 | -54 | -34 |
Cash and cash equivalents, beginning of period | 246 | 300 | 334 |
Cash and cash equivalents, end of period | 222 | 246 | 300 |
Eliminations | |||
Operating activities: | |||
Net cash provided by operating activities | 0 | 0 | 0 |
Investing activities: | |||
Capital expenditures, net | -20 | 0 | 0 |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 | 0 |
Cash paid for joint ventures and acquisitions of businesses, net of cash received | 0 | ||
Decreases in restricted cash | 0 | 0 | 0 |
Changes in other noncurrent assets | 0 | 0 | |
Intercompany investing activities | -874 | -645 | -708 |
Net cash used in investing activities | -894 | -645 | -708 |
Financing activities: | |||
Principal payments of debt and capital lease obligations | 0 | 0 | 0 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 0 | 0 |
Payment of debt origination fees | 0 | 0 | 0 |
Payment of bond premium fees | 0 | 0 | |
Other financing activities | 0 | 0 | 0 |
Dividends paid to Liberty | 0 | 0 | 0 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 |
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | 0 |
Intercompany financing activities | 894 | 645 | 708 |
Net cash used in financing activities | 894 | 645 | 708 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 | $0 |