Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended |
Mar. 31, 2015 | |
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-Q |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | FALSE |
Entity Current Reporting Status submitted electronically | Yes |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $400 | $347 |
Restricted cash | 12 | 12 |
Accounts receivable, less allowance for doubtful accounts of $88 at March 31, 2015 and $91 at December 31, 2014 | 836 | 1,196 |
Inventories | 965 | 882 |
Deferred income taxes | 212 | 210 |
Prepaid expenses | 51 | 50 |
Total current assets | 2,476 | 2,697 |
Noncurrent assets: | ||
Property and equipment, net of accumulated depreciation of $878 at March 31, 2015 and $884 at December 31, 2014 | 972 | 1,026 |
Cable and satellite television distribution rights, net | 452 | 461 |
Goodwill | 5,033 | 5,091 |
Other intangible assets, net | 3,085 | 3,143 |
Other noncurrent assets | 63 | 58 |
Total assets | 12,081 | 12,476 |
Current liabilities: | ||
Current portion of debt and capital lease obligations | 8 | 9 |
Accounts payable-trade | 554 | 629 |
Accrued liabilities | 737 | 885 |
Total current liabilities | 1,299 | 1,523 |
Noncurrent liabilities: | ||
Long-term portion of debt and capital lease obligations | 4,554 | 4,620 |
Deferred compensation | 13 | 17 |
Deferred income taxes | 1,069 | 1,121 |
Other long-term liabilities | 153 | 149 |
Total liabilities | 7,088 | 7,430 |
QVC, Inc. stockholder's equity: | ||
Common stock, $0.01 par value, 1 authorized share | 0 | 0 |
Additional paid-in capital | 6,799 | 6,787 |
Accumulated deficit | -1,757 | -1,805 |
Accumulated other comprehensive loss | -140 | -39 |
Total QVC, Inc. stockholder's equity | 4,902 | 4,943 |
Noncontrolling interest | 91 | 103 |
Total equity | 4,993 | 5,046 |
Total liabilities and equity | $12,081 | $12,476 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Per Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $88 | $91 |
Accumulated depreciation | $878 | $884 |
Common stock par value | $0.01 | $0.01 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net revenue | $1,938 | $1,986 |
Cost of goods sold | 1,221 | 1,256 |
Gross profit | 717 | 730 |
Operating expenses: | ||
Operating | 168 | 178 |
Selling, general and administrative, including stock-based compensation | 150 | 148 |
Depreciation | 33 | 33 |
Amortization | 120 | 111 |
Operating expenses | 471 | 470 |
Operating income | 246 | 260 |
Other (expense) income: | ||
Equity in losses of investee | -1 | -1 |
Interest expense, net | -59 | -62 |
Foreign currency gain (loss) | 10 | -1 |
Nonoperating (expense) income | -50 | -64 |
Income before income taxes | 196 | 196 |
Income tax expense | -72 | -74 |
Net income | 124 | 122 |
Less net income attributable to the noncontrolling interest | -9 | -9 |
Net income attributable to QVC, Inc. stockholder | $115 | $113 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income Statement (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $124 | $122 |
Foreign currency translation adjustments | -102 | 16 |
Total comprehensive income | 22 | 138 |
Comprehensive income attributable to noncontrolling interest | -8 | -12 |
Comprehensive income attributable to QVC, Inc. stockholder | $14 | $126 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $124 | $122 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in losses of investee | 1 | 1 |
Deferred income taxes | -27 | -57 |
Foreign currency (gain) loss | -10 | 1 |
Depreciation | 33 | 33 |
Amortization | 120 | 111 |
Noncash interest | 2 | 2 |
Stock-based compensation | 8 | 8 |
Change in other long-term liabilities | 1 | 34 |
Effects of changes in working capital items | 33 | 6 |
Net cash provided by operating activities | 285 | 261 |
Investing activities: | ||
Capital expenditures, net | -31 | -29 |
Expenditures for cable and satellite television distribution rights, net | -44 | -8 |
Changes in other noncurrent assets | -3 | -2 |
Net cash used in investing activities | -78 | -39 |
Financing activities: | ||
Principal payments of debt and capital lease obligations | -412 | -1,188 |
Principal borrowings of debt from senior secured credit facility | 351 | 384 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 999 |
Payment of debt origination fees | -3 | -12 |
Other financing activities | -1 | 7 |
Dividends paid to Liberty | -59 | -286 |
Dividends paid to noncontrolling interest | -20 | -25 |
Net cash used in financing activities | -144 | -121 |
Effect of foreign exchange rate changes on cash and cash equivalents | -10 | 0 |
Net increase in cash and cash equivalents | 53 | 101 |
Cash and cash equivalents, beginning of period | 347 | 457 |
Cash and cash equivalents, end of period | 400 | 558 |
Effects of changes in working capital items: | ||
Decrease in accounts receivable | 350 | 256 |
Increase in inventories | -103 | -86 |
Increase in prepaid expenses | -5 | -6 |
(Decrease) increase in accounts payable-trade | -67 | 49 |
Decrease in accrued liabilities and other | -142 | -207 |
Effects of changes in working capital items | $33 | $6 |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (USD $) | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interest |
Balance, December 31, 2014 at Dec. 31, 2014 | $5,046,000,000 | $0 | $6,787,000,000 | ($1,805,000,000) | ($39,000,000) | $103,000,000 |
Balance beginning (in shares) at Dec. 31, 2014 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 124,000,000 | 0 | 115,000,000 | 0 | 9,000,000 | |
Foreign currency translation adjustments | -102,000,000 | 0 | 0 | -101,000,000 | -1,000,000 | |
Dividends paid to Liberty and noncontrolling interest and other | -86,000,000 | 0 | -66,000,000 | 0 | -20,000,000 | |
Impact of tax liability allocation and indemnification agreement with Liberty | -1,000,000 | 0 | -1,000,000 | 0 | 0 | |
Minimum withholding taxes on net share settlements of stock-based compensation | -4,000,000 | -4,000,000 | 0 | 0 | 0 | |
Excess tax benefit resulting from stock-based compensation | 8,000,000 | 8,000,000 | 0 | 0 | 0 | |
Stock-based compensation | 8,000,000 | 8,000,000 | 0 | 0 | 0 | |
Balance, March 31, 2015 at Mar. 31, 2015 | $4,993,000,000 | $0 | $6,799,000,000 | ($1,757,000,000) | ($140,000,000) | $91,000,000 |
Balance ending (in shares) at Mar. 31, 2015 | 1 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation [Abstract] | |
Basis of presentation | Basis of Presentation |
QVC, Inc. (unless otherwise indicated or required by the context, the terms "we," "our," "us," the "Company" and "QVC" refer to QVC, Inc. and its consolidated subsidiaries) is a retailer of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised shopping programs, the Internet and mobile applications. In the United States, QVC's live programming is distributed via its nationally televised shopping program 24 hours per day, 364 days per year ("QVC-U.S."). Internationally, QVC's program services are based in 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. generally distributes its program 24 hours per day with 17 hours of live programming. However, as of March 9, 2015, QVC-U.K. has reduced its total live programming from 17 hours to 16 hours during the 1am to 2am hour on a trial basis. 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 three months ended March 31, 2015 and 2014, QVC-Japan paid dividends to Mitsui of $20 million and $25 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 operates a retail business in China through a shopping television channel with an associated website. Live programming is distributed 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 condensed 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. | |
We are an indirect wholly owned subsidiary of Liberty Interactive 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), which we were a part of, and Liberty Ventures (Nasdaq: LVNTA, LVNTB). On October 3, 2014, we 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 our Company and Liberty's 38% equity interest in HSN, Inc. ("HSN"), one of our 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 was changed to "QVCB," effective October 7, 2014. | |
The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. | |
The accompanying (a) condensed consolidated balance sheet as of December 31, 2014, which has been derived from audited financial statements, and (b) the interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and notes thereto contained in QVC's Annual Report on Form 10-K for the year ended December 31, 2014. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, depreciable lives of fixed assets, internally-developed software, valuation of acquired intangible assets and goodwill, income taxes and stock‑based compensation. | |
On May 28, 2014, the Financial Accounting Standards Board ("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 and permits the use of either a retrospective or cumulative effect transition method. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 but a proposal has been issued to extend the effective date to those fiscal years beginning after December 31, 2017. Early application is not permitted. 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. | |
On April 7, 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability. This ASU intends to simplify the presentation of debt issuance costs. This standard will more closely align the presentation of debt issuance costs under U.S. GAAP with the presentation under comparable International Financial Reporting Standards. The new standard is effective for the Company on January 1, 2016. The standard requires the use of the retrospective transition method. The Company has determined there is no significant effect of the standard on its ongoing financial reporting. |
Cable_and_Satellite_Television
Cable and Satellite Television Distribution Rights, Net | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
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: | ||||||
(in millions) | 31-Mar-15 | 31-Dec-14 | ||||
Cable and satellite television distribution rights | $ | 2,245 | 2,308 | |||
Less accumulated amortization | (1,793 | ) | (1,847 | ) | ||
Cable and satellite television distribution rights, net | $ | 452 | 461 | |||
The Company recorded amortization expense of $47 million for both the three months ended March 31, 2015 and 2014 related to cable and satellite television distribution rights. | ||||||
As of March 31, 2015, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | ||||||
Remainder of 2015 | $ | 131 | ||||
2016 | 171 | |||||
2017 | 116 | |||||
2018 | 12 | |||||
2019 | 9 | |||||
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 Liberty's acquisition of QVC in 2003. |
Goodwill_Notes
Goodwill (Notes) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Goodwill disclosure | Goodwill | |||||||||||||
The changes in the carrying amount of goodwill for the three months ended March 31, 2015 were as follows: | ||||||||||||||
(in millions) | QVC-U.S. | QVC-Germany | QVC-Japan | QVC-U.K. | QVC-Italy | Total | ||||||||
Balance as of December 31, 2014 | $ | 4,190 | 308 | 253 | 203 | 137 | 5,091 | |||||||
Exchange rate fluctuations | — | (33 | ) | (1 | ) | (9 | ) | (15 | ) | (58 | ) | |||
Balance as of March 31, 2015 | $ | 4,190 | 275 | 252 | 194 | 122 | 5,033 | |||||||
Other_Intangible_Assets_Net
Other Intangible Assets, Net | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Other Intangible Assets [Abstract] | ||||||||||||||
Intangible assets disclosure | Other Intangible Assets, Net | |||||||||||||
Other intangible assets consisted of the following: | ||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||
(in millions) | Gross | Accumulated | Other intangible assets, net | Gross | Accumulated | Other intangible assets, net | ||||||||
cost | amortization | cost | amortization | |||||||||||
Purchased and internally developed software | $ | 555 | (368 | ) | 187 | 568 | (369 | ) | 199 | |||||
Affiliate and customer relationships | 2,408 | (1,986 | ) | 422 | 2,428 | (1,958 | ) | 470 | ||||||
Debt origination fees | 60 | (12 | ) | 48 | 60 | (14 | ) | 46 | ||||||
Trademarks (indefinite life) | 2,428 | — | 2,428 | 2,428 | — | 2,428 | ||||||||
$ | 5,451 | (2,366 | ) | 3,085 | 5,484 | (2,341 | ) | 3,143 | ||||||
The Company recorded amortization expense of $73 million and $64 million for the three months ended March 31, 2015 and 2014, respectively, related to other intangible assets. | ||||||||||||||
As of March 31, 2015, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions): | ||||||||||||||
Remainder of 2015 | $ | 204 | ||||||||||||
2016 | 252 | |||||||||||||
2017 | 160 | |||||||||||||
2018 | 14 | |||||||||||||
2019 | 9 | |||||||||||||
The decrease in future amortization expense in 2018 is primarily due to the end of the useful lives of the affiliate and customer relationships in place at the time of Liberty's acquisition of QVC in 2003. |
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Accrued Liabilities [Abstract] | ||||||
Accrued liabilities | Accrued Liabilities | |||||
Accrued liabilities consisted of the following: | ||||||
(in millions) | 31-Mar-15 | 31-Dec-14 | ||||
Accounts payable non-trade | $ | 167 | 200 | |||
Income taxes | 123 | 137 | ||||
Accrued compensation and benefits | 96 | 110 | ||||
Deferred revenue | 90 | 85 | ||||
Allowance for sales returns | 73 | 109 | ||||
Accrued interest | 66 | 79 | ||||
Sales and other taxes | 45 | 83 | ||||
Other | 77 | 82 | ||||
$ | 737 | 885 | ||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Debt Disclosure [Abstract] | ||||||
Debt disclosure | Long-Term Debt | |||||
Long-term debt consisted of the following: | ||||||
(in millions) | 31-Mar-15 | 31-Dec-14 | ||||
3.125% Senior Secured Notes due 2019, net of original issue discount | $ | 399 | 399 | |||
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 | 600 | ||||
4.45% Senior Secured Notes due 2025, net of original issue discount | 599 | 599 | ||||
5.45% Senior Secured Notes due 2034, net of original issue discount | 399 | 399 | ||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | 300 | ||||
Senior secured credit facility | 450 | 508 | ||||
Capital lease obligations | 65 | 74 | ||||
Total debt | 4,562 | 4,629 | ||||
Less current portion | (8 | ) | (9 | ) | ||
Long-term portion of debt and capital lease obligations | $ | 4,554 | 4,620 | |||
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. | ||||||
Senior Secured Credit Facility | ||||||
On March 9, 2015, QVC amended and restated its senior secured credit facility (the "Second Amended and Restated Credit Agreement"), which is a multi-currency facility that provides for a $2.25 billion revolving credit facility with a $250 million sub-limit for standby letters of credit and $1.5 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 1.75% depending on various factors. Each loan may be prepaid in whole or in part without penalty at any time 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 secured by the capital stock of QVC. | ||||||
The purpose of the amendment was to, among other things, extend the maturity of our senior secured credit facility to March 9, 2020 and lower the interest rate on borrowings. | ||||||
QVC had $1.8 billion available under the terms of the senior secured credit facility at March 31, 2015. The interest rate on the senior secured credit facility was 1.6% at March 31, 2015. | ||||||
The Second Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including certain restrictions on the Company and each of its restricted subsidiaries (subject to certain exceptions) 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 the Company’s consolidated leverage ratio. | ||||||
Other Debt Related Information | ||||||
QVC was in compliance with all of its debt covenants at March 31, 2015. | ||||||
During the quarter, there were no significant changes to QVC's debt credit ratings. | ||||||
The weighted average rate applicable to all of the outstanding debt (excluding capital leases) was 4.7% as of March 31, 2015. |
Leases_and_Transponder_Service
Leases and Transponder Service Agreements | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
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 March 31, 2015 consisted of the following: | ||||||
(in millions) | Capital transponders | Operating leases | ||||
Remainder of 2015 | $ | 7 | 14 | |||
2016 | 9 | 18 | ||||
2017 | 10 | 17 | ||||
2018 | 11 | 15 | ||||
2019 | 10 | 13 | ||||
Thereafter | 23 | 94 | ||||
Total | $ | 70 | 171 | |||
The Company has entered into twelve separate agreements with transponder suppliers to transmit its signals in the U.S., Germany and the U.K. at an aggregate monthly cost of $1 million. Depreciation expense related to the transponders was $3 million for both the three months ended March 31, 2015 and 2014. Total future minimum capital lease payments of $70 million include $5 million of imputed interest. The transponder service agreements for our U.S. transponders expire between 2019 and 2023. The transponder service agreements for our international transponders expire between 2015 and 2024. | ||||||
Expenses for operating leases, principally for data processing equipment and facilities and for satellite uplink service agreements, amounted to $6 million and $7 million for the three months ended March 31, 2015 and 2014, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes |
The Company calculates its interim income tax provision by applying its best estimate of the annual expected effective tax rate to its ordinary year-to-date income or loss. The tax or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. | |
The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent and temporary differences as a result of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the tax environment changes. To the extent that the estimated annual effective tax rate changes during a quarter, the effect of the change on the prior quarters is included in the tax expense for the current quarter. | |
For the three months ended March 31, 2015, the Company recorded a tax provision of $72 million, which represented an effective tax rate of 36.7%. For the three months ended March 31, 2014, the Company recorded a tax provision of $74 million, which represented an effective tax rate of 37.8%. These rates differ from the U.S. federal income tax rate of 35.0% due primarily to state tax expense. | |
QVC is party to ongoing discussions with the Internal Revenue Service under the Compliance Assurance Process audit program. The Company files Federal tax returns on a consolidated basis with its parent company, Liberty. The Company, or one of its subsidiaries, files income tax returns in various states and foreign jurisdictions. As of March 31, 2015, the Company, or one of its subsidiaries, was under examination in California, Minnesota, New York, Pennsylvania, and Virginia as well as in Germany, the U.K, and Italy. | |
The amounts of the tax-related balances due to Liberty at March 31, 2015 and December 31, 2014 were $63 million and $55 million, respectively, and were included in accrued liabilities in the accompanying condensed consolidated balance sheets. | |
The Company is a 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. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
The Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that the amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements. | |
Network and information systems, including the Internet and telecommunication systems, third party delivery services and other technologies are critical to our business activities. Substantially all our customer orders, fulfillment and delivery services are dependent upon the use of network and information systems, including the use of third party telecommunication and delivery service providers. If information systems including the Internet or telecommunication services are disrupted, or if the third party delivery services experience a disruption in their transportation delivery services, we could face a significant disruption in fulfilling our customer orders and shipment of our products. We have active disaster recovery programs in place to help mitigate risks associated with these critical business activities. |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
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 March 31, 2015 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 | $ | 325 | 325 | — | — | |||||
Long-term liabilities: | ||||||||||
Debt (note 6) | 4,601 | — | 4,601 | — | ||||||
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 6) | 4,626 | — | 4,626 | — | ||||||
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 | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
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 goods sold, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its segments, including the ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among our businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization and stock-based compensation, that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP. | ||||||||||
Performance measures | ||||||||||
Three months ended March 31, | ||||||||||
2015 | 2014 | |||||||||
(in millions) | Net | Adjusted | Net | Adjusted | ||||||
revenue | OIBDA | revenue | OIBDA | |||||||
QVC-U.S. | $ | 1,342 | 306 | 1,305 | 301 | |||||
QVC-Germany | 212 | 39 | 250 | 39 | ||||||
QVC-Japan | 199 | 39 | 234 | 47 | ||||||
QVC-U.K. | 156 | 28 | 165 | 27 | ||||||
QVC-Italy | 29 | (2 | ) | 32 | (2 | ) | ||||
QVC-France | — | (3 | ) | — | — | |||||
Consolidated QVC | $ | 1,938 | 407 | 1,986 | 412 | |||||
Net revenue amounts by product category are not available from our general purpose financial statements. | ||||||||||
Other information | ||||||||||
Three months ended March 31, | ||||||||||
2015 | 2014 | |||||||||
(in millions) | Depreciation | Amortization | Depreciation | Amortization | ||||||
QVC-U.S. | $ | 16 | 106 | 13 | 94 | |||||
QVC-Germany | 7 | 8 | 8 | 11 | ||||||
QVC-Japan | 5 | 2 | 5 | 2 | ||||||
QVC-U.K. | 3 | 3 | 4 | 3 | ||||||
QVC-Italy | 2 | 1 | 3 | 1 | ||||||
Consolidated QVC | $ | 33 | 120 | 33 | 111 | |||||
March 31, 2015 | December 31, 2014 | |||||||||
(in millions) | Total | Capital | Total | Capital | ||||||
assets | expenditures, net | assets | expenditures, net | |||||||
QVC-U.S. | $ | 9,982 | 23 | 10,133 | 141 | |||||
QVC-Germany | 811 | 2 | 915 | 10 | ||||||
QVC-Japan | 589 | — | 644 | 2 | ||||||
QVC-U.K. | 477 | 1 | 537 | 16 | ||||||
QVC-Italy | 214 | 1 | 245 | 12 | ||||||
QVC-France | 8 | 4 | 2 | 1 | ||||||
Consolidated QVC | $ | 12,081 | 31 | 12,476 | 182 | |||||
Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | ||||||||||
(in millions) | 31-Mar-15 | 31-Dec-14 | ||||||||
QVC-U.S. | $ | 455 | 463 | |||||||
QVC-Germany | 181 | 209 | ||||||||
QVC-Japan | 171 | 176 | ||||||||
QVC-U.K. | 111 | 120 | ||||||||
QVC-Italy | 50 | 57 | ||||||||
QVC-France | 4 | 1 | ||||||||
Consolidated QVC | $ | 972 | 1,026 | |||||||
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | ||||||||||
Three months ended March 31, | ||||||||||
(in millions) | 2015 | 2014 | ||||||||
Adjusted OIBDA | $ | 407 | 412 | |||||||
Stock-based compensation | (8 | ) | (8 | ) | ||||||
Depreciation and amortization | (153 | ) | (144 | ) | ||||||
Equity in losses of investee | (1 | ) | (1 | ) | ||||||
Interest expense, net | (59 | ) | (62 | ) | ||||||
Foreign currency gain (loss) | 10 | (1 | ) | |||||||
Income before income taxes | $ | 196 | 196 | |||||||
Other_Comprehensive_Income
Other Comprehensive Income | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2015 | $ | (39 | ) | (39 | ) | |||
Other comprehensive loss attributable to QVC, Inc. stockholder | (101 | ) | (101 | ) | ||||
Balance at March 31, 2015 | (140 | ) | (140 | ) | ||||
Balance at January 1, 2014 | $ | 139 | 139 | |||||
Other comprehensive income attributable to QVC, Inc. stockholder | 13 | 13 | ||||||
Balance at March 31, 2014 | 152 | 152 | ||||||
The component of other comprehensive income is reflected in QVC's condensed consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive income: | ||||||||
(in millions) | Before-tax amount | Tax benefit (expense) | Net-of-tax amount | |||||
Three months ended March 31, 2015: | ||||||||
Foreign currency translation adjustments | $ | (128 | ) | 26 | (102 | ) | ||
Other comprehensive loss | (128 | ) | 26 | (102 | ) | |||
Three months ended March 31, 2014: | ||||||||
Foreign currency translation adjustments | $ | 19 | (3 | ) | 16 | |||
Other comprehensive income | 19 | (3 | ) | 16 | ||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event |
On April 15, 2015, QVC completed the redemption of $500 million principal amount of its 7.375% Senior Secured Notes due 2020, whereby holders received consideration of $1,036.88 for each $1,000 of principal tendered. As a result of the redemption, the Company will record an extinguishment loss of approximately $21 million during the three months ending June 30, 2015. |
GuarantorNonGuarantor_Subsidia
Guarantor/Non-Guarantor Subsidiary Financial Information (Notes) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | ||||||||||||
Guarantor/Non-guarantor Subsidiary Financial Information | Guarantor/Non-guarantor Subsidiary Financial Information | |||||||||||
The following information contains the condensed consolidating financial statements for the Company, the parent on a stand-alone basis (QVC, Inc.), the combined subsidiary guarantors (Affiliate Relations Holdings, Inc.; Affiliate Investment, Inc.; AMI 2, Inc.; ER Marks, Inc.; QVC International LLC; QVC Rocky Mount, Inc. and QVC San Antonio, LLC) and the combined non-guarantor subsidiaries pursuant to Rule 3-10 of Regulation S-X. Certain non-guarantor subsidiaries are majority-owned by QVC International LLC, which is a guarantor subsidiary. | ||||||||||||
These condensed consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the Company's condensed consolidated financial statements. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, such as management fees, royalty revenue and expense, interest income and expense and gains on intercompany asset transfers. In the fourth quarter of 2014 the Company revised the presentation of intercompany management expense (income) and prior period amounts have been reclassified to conform with the 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. | ||||||||||||
The subsidiary guarantors are 100% owned by the Company. All guarantees are full and unconditional and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its U.S. subsidiaries, including the guarantors, by dividend or loan. The Company has not presented separate notes and other disclosures concerning the subsidiary guarantors as the Company has determined that such material information is available in the notes to the Company's condensed consolidated financial statements. | ||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||
March 31, 2015 | ||||||||||||
(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 | $ | 51 | 219 | 130 | — | 400 | ||||||
Restricted cash | 10 | — | 2 | — | 12 | |||||||
Accounts receivable, net | 605 | — | 231 | — | 836 | |||||||
Inventories | 734 | — | 231 | — | 965 | |||||||
Deferred income taxes | 195 | — | 17 | — | 212 | |||||||
Prepaid expenses | 26 | — | 25 | — | 51 | |||||||
Total current assets | 1,621 | 219 | 636 | — | 2,476 | |||||||
Property and equipment, net | 268 | 66 | 638 | — | 972 | |||||||
Cable and satellite television distribution rights, net | — | 392 | 60 | — | 452 | |||||||
Goodwill | 4,184 | — | 849 | — | 5,033 | |||||||
Other intangible assets, net | 981 | 2,051 | 53 | — | 3,085 | |||||||
Other noncurrent assets | 7 | — | 56 | — | 63 | |||||||
Investments in subsidiaries | 4,531 | 1,245 | — | (5,776 | ) | — | ||||||
Total assets | $ | 11,592 | 3,973 | 2,292 | (5,776 | ) | 12,081 | |||||
Liabilities and equity | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 6 | — | 8 | ||||||
Accounts payable-trade | 313 | — | 241 | — | 554 | |||||||
Accrued liabilities | 200 | 156 | 381 | — | 737 | |||||||
Intercompany accounts payable (receivable) | 1,321 | (777 | ) | (544 | ) | — | — | |||||
Total current liabilities | 1,836 | (621 | ) | 84 | — | 1,299 | ||||||
Long-term portion of debt and capital lease obligations | 4,506 | — | 48 | — | 4,554 | |||||||
Deferred compensation | 13 | — | — | — | 13 | |||||||
Deferred income taxes | 234 | 864 | (29 | ) | — | 1,069 | ||||||
Other long-term liabilities | 101 | — | 52 | — | 153 | |||||||
Total liabilities | 6,690 | 243 | 155 | — | 7,088 | |||||||
Equity: | ||||||||||||
QVC, Inc. stockholder's equity | 4,902 | 3,730 | 2,046 | (5,776 | ) | 4,902 | ||||||
Noncontrolling interest | — | — | 91 | — | 91 | |||||||
Total equity | 4,902 | 3,730 | 2,137 | (5,776 | ) | 4,993 | ||||||
Total liabilities and equity | $ | 11,592 | 3,973 | 2,292 | (5,776 | ) | 12,081 | |||||
Condensed 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 | |||||
Condensed Consolidating Statements of Operations | ||||||||||||
Three months ended March 31, 2015 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 1,380 | 202 | 657 | (301 | ) | 1,938 | |||||
Cost of goods sold | 859 | 25 | 386 | (49 | ) | 1,221 | ||||||
Gross profit | 521 | 177 | 271 | (252 | ) | 717 | ||||||
Operating expenses: | ||||||||||||
Operating | 101 | 57 | 89 | (79 | ) | 168 | ||||||
Selling, general and administrative, including stock-based compensation | 242 | — | 81 | (173 | ) | 150 | ||||||
Depreciation | 10 | 3 | 20 | — | 33 | |||||||
Amortization | 59 | 40 | 21 | — | 120 | |||||||
412 | 100 | 211 | (252 | ) | 471 | |||||||
Operating income | 109 | 77 | 60 | — | 246 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (1 | ) | — | (1 | ) | |||||
Interest expense, net | (58 | ) | — | (1 | ) | — | (59 | ) | ||||
Foreign currency gain (loss) | 12 | — | (2 | ) | — | 10 | ||||||
Intercompany interest (expense) income | (6 | ) | 11 | (5 | ) | — | — | |||||
(52 | ) | 11 | (9 | ) | — | (50 | ) | |||||
Income before income taxes | 57 | 88 | 51 | — | 196 | |||||||
Income tax expense | (26 | ) | (25 | ) | (21 | ) | — | (72 | ) | |||
Equity in earnings of subsidiaries, net of tax | 93 | 9 | — | (102 | ) | — | ||||||
Net income | 124 | 72 | 30 | (102 | ) | 124 | ||||||
Less net income attributable to the noncontrolling interest | (9 | ) | — | (9 | ) | 9 | (9 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 115 | 72 | 21 | (93 | ) | 115 | |||||
Condensed Consolidating Statements of Operations | ||||||||||||
Three months ended March 31, 2014 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 1,343 | 191 | 732 | (280 | ) | 1,986 | |||||
Cost of goods sold | 842 | 24 | 447 | (57 | ) | 1,256 | ||||||
Gross profit | 501 | 167 | 285 | (223 | ) | 730 | ||||||
Operating expenses: | ||||||||||||
Operating | 79 | 56 | 101 | (58 | ) | 178 | ||||||
Selling, general and administrative, including stock-based compensation | 223 | 1 | 89 | (165 | ) | 148 | ||||||
Depreciation | 9 | 1 | 23 | — | 33 | |||||||
Amortization | 52 | 39 | 20 | — | 111 | |||||||
363 | 97 | 233 | (223 | ) | 470 | |||||||
Operating income | 138 | 70 | 52 | — | 260 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (1 | ) | — | (1 | ) | |||||
Interest expense, net | (53 | ) | — | (9 | ) | — | (62 | ) | ||||
Foreign currency (loss) gain | (2 | ) | — | 1 | — | (1 | ) | |||||
Intercompany interest (expense) income | (5 | ) | 13 | (8 | ) | — | — | |||||
(60 | ) | 13 | (17 | ) | — | (64 | ) | |||||
Income before income taxes | 78 | 83 | 35 | — | 196 | |||||||
Income tax benefit (expense) | 20 | (24 | ) | (70 | ) | — | (74 | ) | ||||
Equity in earnings (losses) of subsidiaries, net of tax | 24 | (48 | ) | — | 24 | — | ||||||
Net income (loss) | 122 | 11 | (35 | ) | 24 | 122 | ||||||
Less net income attributable to the noncontrolling interest | (9 | ) | — | (9 | ) | 9 | (9 | ) | ||||
Net income (loss) attributable to QVC, Inc. stockholder | $ | 113 | 11 | (44 | ) | 33 | 113 | |||||
Condensed Consolidating Statements of Comprehensive Income | ||||||||||||
Three months ended March 31, 2015 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 124 | 72 | 30 | (102 | ) | 124 | |||||
Foreign currency translation adjustments | (102 | ) | — | (102 | ) | 102 | (102 | ) | ||||
Total comprehensive income (loss) | 22 | 72 | (72 | ) | — | 22 | ||||||
Comprehensive income attributable to noncontrolling interest | (8 | ) | — | (8 | ) | 8 | (8 | ) | ||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 14 | 72 | (80 | ) | 8 | 14 | |||||
Condensed Consolidating Statements of Comprehensive Income | ||||||||||||
Three months ended March 31, 2014 | ||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income (loss) | $ | 122 | 11 | (35 | ) | 24 | 122 | |||||
Foreign currency translation adjustments | 16 | — | 16 | (16 | ) | 16 | ||||||
Total comprehensive income (loss) | 138 | 11 | (19 | ) | 8 | 138 | ||||||
Comprehensive income attributable to noncontrolling interest | (12 | ) | — | (12 | ) | 12 | (12 | ) | ||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 126 | 11 | (31 | ) | 20 | 126 | |||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||
Three months ended March 31, 2015 | ||||||||||||
(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 | $ | 118 | 106 | 61 | — | 285 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (21 | ) | (1 | ) | (9 | ) | — | (31 | ) | |||
Expenditures for cable and satellite television distribution rights, net | — | (44 | ) | — | — | (44 | ) | |||||
Changes in other noncurrent assets | (4 | ) | — | 1 | — | (3 | ) | |||||
Intercompany investing activities | 243 | 150 | — | (393 | ) | — | ||||||
Net cash provided by (used in) investing activities | 218 | 105 | (8 | ) | (393 | ) | (78 | ) | ||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (410 | ) | — | (2 | ) | — | (412 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 351 | — | — | — | 351 | |||||||
Payment of debt origination fees | (3 | ) | — | — | — | (3 | ) | |||||
Other financing activities | (1 | ) | — | — | — | (1 | ) | |||||
Dividends paid to Liberty | (59 | ) | — | — | — | (59 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (20 | ) | — | (20 | ) | |||||
Net short-term intercompany debt (repayments) borrowings | (63 | ) | 144 | (81 | ) | — | — | |||||
Other intercompany financing activities | (102 | ) | (259 | ) | (32 | ) | 393 | — | ||||
Net cash used in financing activities | (287 | ) | (115 | ) | (135 | ) | 393 | (144 | ) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (10 | ) | — | (10 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 49 | 96 | (92 | ) | — | 53 | ||||||
Cash and cash equivalents, beginning of period | 2 | 123 | 222 | — | 347 | |||||||
Cash and cash equivalents, end of period | $ | 51 | 219 | 130 | — | 400 | ||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||
Three months ended March 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 | $ | 107 | 98 | 56 | — | 261 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (12 | ) | — | (17 | ) | — | (29 | ) | ||||
Expenditures for cable and satellite television distribution rights, net | — | (8 | ) | — | — | (8 | ) | |||||
Changes in other noncurrent assets | (2 | ) | — | — | — | (2 | ) | |||||
Intercompany investing activities | 65 | 54 | — | (119 | ) | — | ||||||
Net cash provided by (used in) investing activities | 51 | 46 | (17 | ) | (119 | ) | (39 | ) | ||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (1,186 | ) | — | (2 | ) | — | (1,188 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 384 | — | — | — | 384 | |||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | — | — | — | 999 | |||||||
Payment of debt origination fees | (12 | ) | — | — | — | (12 | ) | |||||
Other financing activities | 7 | — | — | — | 7 | |||||||
Dividends paid to Liberty | (286 | ) | — | — | — | (286 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | |||||
Net short-term intercompany debt (repayments) borrowings | (84 | ) | 73 | 11 | — | — | ||||||
Other intercompany financing activities | (11 | ) | (132 | ) | 24 | 119 | — | |||||
Net cash (used in) provided by financing activities | (189 | ) | (59 | ) | 8 | 119 | (121 | ) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | — | — | — | |||||||
Net (decrease) increase in cash and cash equivalents | (31 | ) | 85 | 47 | — | 101 | ||||||
Cash and cash equivalents, beginning of period | 78 | 133 | 246 | — | 457 | |||||||
Cash and cash equivalents, end of period | $ | 47 | 218 | 293 | — | 558 | ||||||
Cable_and_Satellite_Television1
Cable and Satellite Television Distribution Rights, Net (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
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: | |||||
(in millions) | 31-Mar-15 | 31-Dec-14 | ||||
Cable and satellite television distribution rights | $ | 2,245 | 2,308 | |||
Less accumulated amortization | (1,793 | ) | (1,847 | ) | ||
Cable and satellite television distribution rights, net | $ | 452 | 461 | |||
Schedule of future amortization expense | As of March 31, 2015, related amortization expense for each of the next five years ended December 31 was as follows (in millions): | |||||
Remainder of 2015 | $ | 131 | ||||
2016 | 171 | |||||
2017 | 116 | |||||
2018 | 12 | |||||
2019 | 9 | |||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Schedule of goodwill | The changes in the carrying amount of goodwill for the three months ended March 31, 2015 were as follows: | |||||||||||||
(in millions) | QVC-U.S. | QVC-Germany | QVC-Japan | QVC-U.K. | QVC-Italy | Total | ||||||||
Balance as of December 31, 2014 | $ | 4,190 | 308 | 253 | 203 | 137 | 5,091 | |||||||
Exchange rate fluctuations | — | (33 | ) | (1 | ) | (9 | ) | (15 | ) | (58 | ) | |||
Balance as of March 31, 2015 | $ | 4,190 | 275 | 252 | 194 | 122 | 5,033 | |||||||
Other_Intangible_Assets_Net_Ta
Other Intangible Assets, Net (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Other Intangible Assets [Abstract] | ||||||||||||||
Schedule of acquired intangible assets by class | Other intangible assets consisted of the following: | |||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||
(in millions) | Gross | Accumulated | Other intangible assets, net | Gross | Accumulated | Other intangible assets, net | ||||||||
cost | amortization | cost | amortization | |||||||||||
Purchased and internally developed software | $ | 555 | (368 | ) | 187 | 568 | (369 | ) | 199 | |||||
Affiliate and customer relationships | 2,408 | (1,986 | ) | 422 | 2,428 | (1,958 | ) | 470 | ||||||
Debt origination fees | 60 | (12 | ) | 48 | 60 | (14 | ) | 46 | ||||||
Trademarks (indefinite life) | 2,428 | — | 2,428 | 2,428 | — | 2,428 | ||||||||
$ | 5,451 | (2,366 | ) | 3,085 | 5,484 | (2,341 | ) | 3,143 | ||||||
Schedule of finite-lived intangible assets future amortization expense | As of March 31, 2015, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions): | |||||||||||||
Remainder of 2015 | $ | 204 | ||||||||||||
2016 | 252 | |||||||||||||
2017 | 160 | |||||||||||||
2018 | 14 | |||||||||||||
2019 | 9 | |||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Accrued Liabilities [Abstract] | ||||||
Schedule of accrued liabilities | Accrued liabilities consisted of the following: | |||||
(in millions) | 31-Mar-15 | 31-Dec-14 | ||||
Accounts payable non-trade | $ | 167 | 200 | |||
Income taxes | 123 | 137 | ||||
Accrued compensation and benefits | 96 | 110 | ||||
Deferred revenue | 90 | 85 | ||||
Allowance for sales returns | 73 | 109 | ||||
Accrued interest | 66 | 79 | ||||
Sales and other taxes | 45 | 83 | ||||
Other | 77 | 82 | ||||
$ | 737 | 885 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Debt Disclosure [Abstract] | ||||||
Schedule of debt | Long-term debt consisted of the following: | |||||
(in millions) | 31-Mar-15 | 31-Dec-14 | ||||
3.125% Senior Secured Notes due 2019, net of original issue discount | $ | 399 | 399 | |||
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 | 600 | ||||
4.45% Senior Secured Notes due 2025, net of original issue discount | 599 | 599 | ||||
5.45% Senior Secured Notes due 2034, net of original issue discount | 399 | 399 | ||||
5.95% Senior Secured Notes due 2043, net of original issue discount | 300 | 300 | ||||
Senior secured credit facility | 450 | 508 | ||||
Capital lease obligations | 65 | 74 | ||||
Total debt | 4,562 | 4,629 | ||||
Less current portion | (8 | ) | (9 | ) | ||
Long-term portion of debt and capital lease obligations | $ | 4,554 | 4,620 | |||
Leases_and_Transponder_Service1
Leases and Transponder Service Agreements (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
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 March 31, 2015 consisted of the following: | |||||
(in millions) | Capital transponders | Operating leases | ||||
Remainder of 2015 | $ | 7 | 14 | |||
2016 | 9 | 18 | ||||
2017 | 10 | 17 | ||||
2018 | 11 | 15 | ||||
2019 | 10 | 13 | ||||
Thereafter | 23 | 94 | ||||
Total | $ | 70 | 171 | |||
Assets_and_Liabilities_Measure1
Assets and Liabilities Measured at Fair Value (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
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 March 31, 2015 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 | $ | 325 | 325 | — | — | |||||
Long-term liabilities: | ||||||||||
Debt (note 6) | 4,601 | — | 4,601 | — | ||||||
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 6) | 4,626 | — | 4,626 | — | ||||||
Information_about_QVCs_Operati1
Information about QVC's Operating Segments (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Schedule of Revenue and Adjusted OIBDA by Segment | ||||||||||
Three months ended March 31, | ||||||||||
2015 | 2014 | |||||||||
(in millions) | Net | Adjusted | Net | Adjusted | ||||||
revenue | OIBDA | revenue | OIBDA | |||||||
QVC-U.S. | $ | 1,342 | 306 | 1,305 | 301 | |||||
QVC-Germany | 212 | 39 | 250 | 39 | ||||||
QVC-Japan | 199 | 39 | 234 | 47 | ||||||
QVC-U.K. | 156 | 28 | 165 | 27 | ||||||
QVC-Italy | 29 | (2 | ) | 32 | (2 | ) | ||||
QVC-France | — | (3 | ) | — | — | |||||
Consolidated QVC | $ | 1,938 | 407 | 1,986 | 412 | |||||
Schedule of Depreciation and Amortization by Segment | ||||||||||
Three months ended March 31, | ||||||||||
2015 | 2014 | |||||||||
(in millions) | Depreciation | Amortization | Depreciation | Amortization | ||||||
QVC-U.S. | $ | 16 | 106 | 13 | 94 | |||||
QVC-Germany | 7 | 8 | 8 | 11 | ||||||
QVC-Japan | 5 | 2 | 5 | 2 | ||||||
QVC-U.K. | 3 | 3 | 4 | 3 | ||||||
QVC-Italy | 2 | 1 | 3 | 1 | ||||||
Consolidated QVC | $ | 33 | 120 | 33 | 111 | |||||
Schedule of Capital Expenditures and Total Assets by Segment | ||||||||||
March 31, 2015 | December 31, 2014 | |||||||||
(in millions) | Total | Capital | Total | Capital | ||||||
assets | expenditures, net | assets | expenditures, net | |||||||
QVC-U.S. | $ | 9,982 | 23 | 10,133 | 141 | |||||
QVC-Germany | 811 | 2 | 915 | 10 | ||||||
QVC-Japan | 589 | — | 644 | 2 | ||||||
QVC-U.K. | 477 | 1 | 537 | 16 | ||||||
QVC-Italy | 214 | 1 | 245 | 12 | ||||||
QVC-France | 8 | 4 | 2 | 1 | ||||||
Consolidated QVC | $ | 12,081 | 31 | 12,476 | 182 | |||||
Long-Lived Assets by Segment | Long-lived assets, net of accumulated depreciation, by geographic area were as follows: | |||||||||
(in millions) | 31-Mar-15 | 31-Dec-14 | ||||||||
QVC-U.S. | $ | 455 | 463 | |||||||
QVC-Germany | 181 | 209 | ||||||||
QVC-Japan | 171 | 176 | ||||||||
QVC-U.K. | 111 | 120 | ||||||||
QVC-Italy | 50 | 57 | ||||||||
QVC-France | 4 | 1 | ||||||||
Consolidated QVC | $ | 972 | 1,026 | |||||||
Reconciliation of Adjusted OIBDA to Income before Income Taxes | The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: | |||||||||
Three months ended March 31, | ||||||||||
(in millions) | 2015 | 2014 | ||||||||
Adjusted OIBDA | $ | 407 | 412 | |||||||
Stock-based compensation | (8 | ) | (8 | ) | ||||||
Depreciation and amortization | (153 | ) | (144 | ) | ||||||
Equity in losses of investee | (1 | ) | (1 | ) | ||||||
Interest expense, net | (59 | ) | (62 | ) | ||||||
Foreign currency gain (loss) | 10 | (1 | ) | |||||||
Income before income taxes | $ | 196 | 196 | |||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2015 | $ | (39 | ) | (39 | ) | |||
Other comprehensive loss attributable to QVC, Inc. stockholder | (101 | ) | (101 | ) | ||||
Balance at March 31, 2015 | (140 | ) | (140 | ) | ||||
Balance at January 1, 2014 | $ | 139 | 139 | |||||
Other comprehensive income attributable to QVC, Inc. stockholder | 13 | 13 | ||||||
Balance at March 31, 2014 | 152 | 152 | ||||||
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 benefit (expense) | Net-of-tax amount | |||||
Three months ended March 31, 2015: | ||||||||
Foreign currency translation adjustments | $ | (128 | ) | 26 | (102 | ) | ||
Other comprehensive loss | (128 | ) | 26 | (102 | ) | |||
Three months ended March 31, 2014: | ||||||||
Foreign currency translation adjustments | $ | 19 | (3 | ) | 16 | |||
Other comprehensive income | 19 | (3 | ) | 16 | ||||
GuarantorNonGuarantor_Subsidia1
Guarantor/Non-Guarantor Subsidiary Financial Information (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | ||||||||||||
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Period | Condensed Consolidating Balance Sheets | |||||||||||
March 31, 2015 | ||||||||||||
(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 | $ | 51 | 219 | 130 | — | 400 | ||||||
Restricted cash | 10 | — | 2 | — | 12 | |||||||
Accounts receivable, net | 605 | — | 231 | — | 836 | |||||||
Inventories | 734 | — | 231 | — | 965 | |||||||
Deferred income taxes | 195 | — | 17 | — | 212 | |||||||
Prepaid expenses | 26 | — | 25 | — | 51 | |||||||
Total current assets | 1,621 | 219 | 636 | — | 2,476 | |||||||
Property and equipment, net | 268 | 66 | 638 | — | 972 | |||||||
Cable and satellite television distribution rights, net | — | 392 | 60 | — | 452 | |||||||
Goodwill | 4,184 | — | 849 | — | 5,033 | |||||||
Other intangible assets, net | 981 | 2,051 | 53 | — | 3,085 | |||||||
Other noncurrent assets | 7 | — | 56 | — | 63 | |||||||
Investments in subsidiaries | 4,531 | 1,245 | — | (5,776 | ) | — | ||||||
Total assets | $ | 11,592 | 3,973 | 2,292 | (5,776 | ) | 12,081 | |||||
Liabilities and equity | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of debt and capital lease obligations | $ | 2 | — | 6 | — | 8 | ||||||
Accounts payable-trade | 313 | — | 241 | — | 554 | |||||||
Accrued liabilities | 200 | 156 | 381 | — | 737 | |||||||
Intercompany accounts payable (receivable) | 1,321 | (777 | ) | (544 | ) | — | — | |||||
Total current liabilities | 1,836 | (621 | ) | 84 | — | 1,299 | ||||||
Long-term portion of debt and capital lease obligations | 4,506 | — | 48 | — | 4,554 | |||||||
Deferred compensation | 13 | — | — | — | 13 | |||||||
Deferred income taxes | 234 | 864 | (29 | ) | — | 1,069 | ||||||
Other long-term liabilities | 101 | — | 52 | — | 153 | |||||||
Total liabilities | 6,690 | 243 | 155 | — | 7,088 | |||||||
Equity: | ||||||||||||
QVC, Inc. stockholder's equity | 4,902 | 3,730 | 2,046 | (5,776 | ) | 4,902 | ||||||
Noncontrolling interest | — | — | 91 | — | 91 | |||||||
Total equity | 4,902 | 3,730 | 2,137 | (5,776 | ) | 4,993 | ||||||
Total liabilities and equity | $ | 11,592 | 3,973 | 2,292 | (5,776 | ) | 12,081 | |||||
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Period | Condensed 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 | |||||
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Period | Condensed Consolidating Statements of Operations | |||||||||||
Three months ended March 31, 2015 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 1,380 | 202 | 657 | (301 | ) | 1,938 | |||||
Cost of goods sold | 859 | 25 | 386 | (49 | ) | 1,221 | ||||||
Gross profit | 521 | 177 | 271 | (252 | ) | 717 | ||||||
Operating expenses: | ||||||||||||
Operating | 101 | 57 | 89 | (79 | ) | 168 | ||||||
Selling, general and administrative, including stock-based compensation | 242 | — | 81 | (173 | ) | 150 | ||||||
Depreciation | 10 | 3 | 20 | — | 33 | |||||||
Amortization | 59 | 40 | 21 | — | 120 | |||||||
412 | 100 | 211 | (252 | ) | 471 | |||||||
Operating income | 109 | 77 | 60 | — | 246 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (1 | ) | — | (1 | ) | |||||
Interest expense, net | (58 | ) | — | (1 | ) | — | (59 | ) | ||||
Foreign currency gain (loss) | 12 | — | (2 | ) | — | 10 | ||||||
Intercompany interest (expense) income | (6 | ) | 11 | (5 | ) | — | — | |||||
(52 | ) | 11 | (9 | ) | — | (50 | ) | |||||
Income before income taxes | 57 | 88 | 51 | — | 196 | |||||||
Income tax expense | (26 | ) | (25 | ) | (21 | ) | — | (72 | ) | |||
Equity in earnings of subsidiaries, net of tax | 93 | 9 | — | (102 | ) | — | ||||||
Net income | 124 | 72 | 30 | (102 | ) | 124 | ||||||
Less net income attributable to the noncontrolling interest | (9 | ) | — | (9 | ) | 9 | (9 | ) | ||||
Net income attributable to QVC, Inc. stockholder | $ | 115 | 72 | 21 | (93 | ) | 115 | |||||
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Period | Condensed Consolidating Statements of Operations | |||||||||||
Three months ended March 31, 2014 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net revenue | $ | 1,343 | 191 | 732 | (280 | ) | 1,986 | |||||
Cost of goods sold | 842 | 24 | 447 | (57 | ) | 1,256 | ||||||
Gross profit | 501 | 167 | 285 | (223 | ) | 730 | ||||||
Operating expenses: | ||||||||||||
Operating | 79 | 56 | 101 | (58 | ) | 178 | ||||||
Selling, general and administrative, including stock-based compensation | 223 | 1 | 89 | (165 | ) | 148 | ||||||
Depreciation | 9 | 1 | 23 | — | 33 | |||||||
Amortization | 52 | 39 | 20 | — | 111 | |||||||
363 | 97 | 233 | (223 | ) | 470 | |||||||
Operating income | 138 | 70 | 52 | — | 260 | |||||||
Other (expense) income: | ||||||||||||
Equity in losses of investee | — | — | (1 | ) | — | (1 | ) | |||||
Interest expense, net | (53 | ) | — | (9 | ) | — | (62 | ) | ||||
Foreign currency (loss) gain | (2 | ) | — | 1 | — | (1 | ) | |||||
Intercompany interest (expense) income | (5 | ) | 13 | (8 | ) | — | — | |||||
(60 | ) | 13 | (17 | ) | — | (64 | ) | |||||
Income before income taxes | 78 | 83 | 35 | — | 196 | |||||||
Income tax benefit (expense) | 20 | (24 | ) | (70 | ) | — | (74 | ) | ||||
Equity in earnings (losses) of subsidiaries, net of tax | 24 | (48 | ) | — | 24 | — | ||||||
Net income (loss) | 122 | 11 | (35 | ) | 24 | 122 | ||||||
Less net income attributable to the noncontrolling interest | (9 | ) | — | (9 | ) | 9 | (9 | ) | ||||
Net income (loss) attributable to QVC, Inc. stockholder | $ | 113 | 11 | (44 | ) | 33 | 113 | |||||
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Period | Condensed Consolidating Statements of Comprehensive Income | |||||||||||
Three months ended March 31, 2015 | ||||||||||||
(in millions) | Parent | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income | $ | 124 | 72 | 30 | (102 | ) | 124 | |||||
Foreign currency translation adjustments | (102 | ) | — | (102 | ) | 102 | (102 | ) | ||||
Total comprehensive income (loss) | 22 | 72 | (72 | ) | — | 22 | ||||||
Comprehensive income attributable to noncontrolling interest | (8 | ) | — | (8 | ) | 8 | (8 | ) | ||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 14 | 72 | (80 | ) | 8 | 14 | |||||
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Period | Condensed Consolidating Statements of Comprehensive Income | |||||||||||
Three months ended March 31, 2014 | ||||||||||||
(in millions) | Subsidiary | Combined | Combined | Eliminations | Consolidated- | |||||||
issuer- | subsidiary | non-guarantor | QVC, Inc. and | |||||||||
QVC, Inc. | guarantors | subsidiaries | subsidiaries | |||||||||
Net income (loss) | $ | 122 | 11 | (35 | ) | 24 | 122 | |||||
Foreign currency translation adjustments | 16 | — | 16 | (16 | ) | 16 | ||||||
Total comprehensive income (loss) | 138 | 11 | (19 | ) | 8 | 138 | ||||||
Comprehensive income attributable to noncontrolling interest | (12 | ) | — | (12 | ) | 12 | (12 | ) | ||||
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $ | 126 | 11 | (31 | ) | 20 | 126 | |||||
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Period | Condensed Consolidating Statements of Cash Flows | |||||||||||
Three months ended March 31, 2015 | ||||||||||||
(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 | $ | 118 | 106 | 61 | — | 285 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (21 | ) | (1 | ) | (9 | ) | — | (31 | ) | |||
Expenditures for cable and satellite television distribution rights, net | — | (44 | ) | — | — | (44 | ) | |||||
Changes in other noncurrent assets | (4 | ) | — | 1 | — | (3 | ) | |||||
Intercompany investing activities | 243 | 150 | — | (393 | ) | — | ||||||
Net cash provided by (used in) investing activities | 218 | 105 | (8 | ) | (393 | ) | (78 | ) | ||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (410 | ) | — | (2 | ) | — | (412 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 351 | — | — | — | 351 | |||||||
Payment of debt origination fees | (3 | ) | — | — | — | (3 | ) | |||||
Other financing activities | (1 | ) | — | — | — | (1 | ) | |||||
Dividends paid to Liberty | (59 | ) | — | — | — | (59 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (20 | ) | — | (20 | ) | |||||
Net short-term intercompany debt (repayments) borrowings | (63 | ) | 144 | (81 | ) | — | — | |||||
Other intercompany financing activities | (102 | ) | (259 | ) | (32 | ) | 393 | — | ||||
Net cash used in financing activities | (287 | ) | (115 | ) | (135 | ) | 393 | (144 | ) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (10 | ) | — | (10 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 49 | 96 | (92 | ) | — | 53 | ||||||
Cash and cash equivalents, beginning of period | 2 | 123 | 222 | — | 347 | |||||||
Cash and cash equivalents, end of period | $ | 51 | 219 | 130 | — | 400 | ||||||
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Period | Condensed Consolidating Statements of Cash Flows | |||||||||||
Three months ended March 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 | $ | 107 | 98 | 56 | — | 261 | ||||||
Investing activities: | ||||||||||||
Capital expenditures, net | (12 | ) | — | (17 | ) | — | (29 | ) | ||||
Expenditures for cable and satellite television distribution rights, net | — | (8 | ) | — | — | (8 | ) | |||||
Changes in other noncurrent assets | (2 | ) | — | — | — | (2 | ) | |||||
Intercompany investing activities | 65 | 54 | — | (119 | ) | — | ||||||
Net cash provided by (used in) investing activities | 51 | 46 | (17 | ) | (119 | ) | (39 | ) | ||||
Financing activities: | ||||||||||||
Principal payments of debt and capital lease obligations | (1,186 | ) | — | (2 | ) | — | (1,188 | ) | ||||
Principal borrowings of debt from senior secured credit facility | 384 | — | — | — | 384 | |||||||
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | — | — | — | 999 | |||||||
Payment of debt origination fees | (12 | ) | — | — | — | (12 | ) | |||||
Other financing activities | 7 | — | — | — | 7 | |||||||
Dividends paid to Liberty | (286 | ) | — | — | — | (286 | ) | |||||
Dividends paid to noncontrolling interest | — | — | (25 | ) | — | (25 | ) | |||||
Net short-term intercompany debt (repayments) borrowings | (84 | ) | 73 | 11 | — | — | ||||||
Other intercompany financing activities | (11 | ) | (132 | ) | 24 | 119 | — | |||||
Net cash (used in) provided by financing activities | (189 | ) | (59 | ) | 8 | 119 | (121 | ) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | — | — | — | |||||||
Net (decrease) increase in cash and cash equivalents | (31 | ) | 85 | 47 | — | 101 | ||||||
Cash and cash equivalents, beginning of period | 78 | 133 | 246 | — | 457 | |||||||
Cash and cash equivalents, end of period | $ | 47 | 218 | 293 | — | 558 | ||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 2 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Oct. 03, 2014 | Mar. 31, 2015 | Mar. 08, 2015 |
General business information | |||||
Dividend paid to noncontrolling interest | $20 | $25 | |||
Cash dividends paid to Liberty | -59 | -286 | |||
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% | 49.00% | |||
QVC-Japan | |||||
General business information | |||||
Investment owned, percent of net assets | 60.00% | 60.00% | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 40.00% | 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% | 38.00% | |||
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 | 16 hours | 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 |
Cable_and_Satellite_Television2
Cable and Satellite Television Distribution Rights, Net (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||
Cable and satellite television distribution rights, net | $3,085 | $3,143 | |
Amortization | 120 | 111 | |
Cable and satellite television distribution rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cable and satellite television distribution rights | 2,245 | 2,308 | |
Less accumulated amortization | -1,793 | -1,847 | |
Cable and satellite television distribution rights, net | 452 | 461 | |
Amortization | $47 | $47 |
Cable_and_Satellite_Television3
Cable and Satellite Television Distribution Rights, Net (Future Amortization Expense) (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2015 | $204 |
2016 | 252 |
2017 | 160 |
2018 | 14 |
2019 | 9 |
Cable and satellite television distribution rights | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2015 | 131 |
2016 | 171 |
2017 | 116 |
2018 | 12 |
2019 | $9 |
Goodwill_Goodwill_Details
Goodwill Goodwill (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Line Items] | |
Balance as of December 31, 2014 | $5,091 |
Exchange rate fluctuations | -58 |
Balance as of March 31, 2015 | 5,033 |
QVC-U.S. | |
Goodwill [Line Items] | |
Balance as of December 31, 2014 | 4,190 |
Exchange rate fluctuations | 0 |
Balance as of March 31, 2015 | 4,190 |
QVC-Germany | |
Goodwill [Line Items] | |
Balance as of December 31, 2014 | 308 |
Exchange rate fluctuations | -33 |
Balance as of March 31, 2015 | 275 |
QVC-Japan | |
Goodwill [Line Items] | |
Balance as of December 31, 2014 | 253 |
Exchange rate fluctuations | -1 |
Balance as of March 31, 2015 | 252 |
QVC-U.K. | |
Goodwill [Line Items] | |
Balance as of December 31, 2014 | 203 |
Exchange rate fluctuations | -9 |
Balance as of March 31, 2015 | 194 |
QVC-Italy | |
Goodwill [Line Items] | |
Balance as of December 31, 2014 | 137 |
Exchange rate fluctuations | -15 |
Balance as of March 31, 2015 | $122 |
Other_Intangible_Assets_Net_Ot
Other Intangible Assets, Net (Other Intangible Assets) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Gross cost | |||
Purchased and internally developed software | $555 | $568 | |
Affiliate and customer relationships | 2,408 | 2,428 | |
Debt origination fees | 60 | 60 | |
Trademarks (indefinite life) | 2,428 | 2,428 | |
Other intangible assets (excluding goodwill), gross | 5,451 | 5,484 | |
Accumulated amortization | |||
Purchased and internally developed software | -368 | -369 | |
Affiliate and customer relationships | -1,986 | -1,958 | |
Debt origination fees | -12 | -14 | |
Other intangible assets (excluding goodwill), accumulated amortization | -2,366 | -2,341 | |
Other intangible assets, net | |||
Purchased and internally developed software | 187 | 199 | |
Affiliate and customer relationships | 422 | 470 | |
Debt origination fees | 48 | 46 | |
Other intangible assets (excluding goodwill), net | 3,085 | 3,143 | |
Amortization of other intangible assets | $73 | $64 |
Other_Intangible_Assets_Net_Fu
Other Intangible Assets, Net (Future Amortization Expense) (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2015 | $204 |
2016 | 252 |
2017 | 160 |
2018 | 14 |
2019 | $9 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ||
Accounts payable non-trade | $167 | $200 |
Income taxes | 123 | 137 |
Accrued compensation and benefits | 96 | 110 |
Deferred revenue | 90 | 85 |
Allowance for sales returns | 73 | 109 |
Accrued interest | 66 | 79 |
Sales and other taxes | 45 | 83 |
Other | 77 | 82 |
Accrued liabilities | $737 | $885 |
LongTerm_Debt_Debt_Details
Long-Term Debt (Debt) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $4,562 | $4,629 |
Less current portion | -8 | -9 |
Long-term portion of debt and capital lease obligations | 4,554 | 4,620 |
3.125% Senior Secured Notes due 2019, net of original issue discount | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 399 | 399 |
Debt instrument interest rate stated percentage | 3.13% | |
7.375% Senior Secured Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 500 | 500 |
Debt instrument interest rate stated percentage | 7.38% | |
5.125% Senior Secured Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 500 | 500 |
Debt instrument interest rate stated percentage | 5.13% | |
4.375% Senior Secured Notes due 2023, net of original issue discount | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 750 | 750 |
Debt instrument interest rate stated percentage | 4.38% | |
4.85% Senior Secured Notes due 2024, net of original issue discount | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 600 | 600 |
Debt instrument interest rate stated percentage | 4.85% | |
4.45% Senior Secured Notes due 2025, net of original issue discount | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 599 | 599 |
Debt instrument interest rate stated percentage | 4.45% | |
5.45% Senior Secured Notes due 2034, net of original issue discount | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 399 | 399 |
Debt instrument interest rate stated percentage | 5.45% | |
5.95% Senior Secured Notes due 2043, net of original issue discount | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 300 | 300 |
Debt instrument interest rate stated percentage | 5.95% | |
Senior secured credit facility | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 450 | 508 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $65 | $74 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | Mar. 31, 2015 | Mar. 09, 2015 |
Debt Disclosure [Abstract] | ||
Line of credit facility maximum borrowing capacity | $2,250,000,000 | |
Line of credit facility standby letter of credit | 250,000,000 | |
Line of credit facility uncommitted loan | 1,500,000,000 | |
Debt instrument lower range of basis spread on variable rate | 0.25% | |
Debt instrument higher range of basis spread on variable rate | 1.75% | |
Line of credit facility remaining borrowing capacity | $1,800,000,000 | |
Line of credit facility interest rate at period end | 1.60% | |
Debt weighted average interest rate | 4.70% |
Leases_and_Transponder_Service2
Leases and Transponder Service Agreements (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Capital transponders | ||
Remainder of 2015 | $7 | |
2016 | 9 | |
2017 | 10 | |
2018 | 11 | |
2019 | 10 | |
Thereafter | 23 | |
Total | 70 | |
Operating leases | ||
Remainder of 2015 | 14 | |
2016 | 18 | |
2017 | 17 | |
2018 | 15 | |
2019 | 13 | |
Thereafter | 94 | |
Total | 171 | |
Capital transponder monthly lease expense | 1 | |
Capital leases depreciation expense | 3 | 3 |
Imputed interest on capital lease | 5 | |
Operating leases expense net | $6 | $7 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Income Tax Contingency [Line Items] | |||
Income tax expense (benefit) | $72 | $74 | |
Effective income tax rate reconciliation, percent | 36.70% | 37.80% | |
UNITED STATES | |||
Income Tax Contingency [Line Items] | |||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 35.00% | ||
Liberty | Tax Agreement | |||
Income Tax Contingency [Line Items] | |||
Current tax payments due to related parties | $63 | $55 |
Assets_and_Liabilities_Measure2
Assets and Liabilities Measured at Fair Value (Details) (Recurring, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash equivalents | $325 | $245 |
Long-term liabilities: | ||
Debt (note 6) | 4,601 | 4,626 |
Level 1 | ||
Current assets: | ||
Cash equivalents | 325 | 245 |
Level 2 | ||
Long-term liabilities: | ||
Debt (note 6) | $4,601 | $4,626 |
Information_about_QVCs_Operati2
Information about QVC's Operating Segments (Revenue and Adjusted OIBDA by Segment) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment | ||
Segment Reporting [Abstract] | ||
Number of operating segments | 6 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $1,938 | $1,986 |
Adjusted OIBDA | 407 | 412 |
QVC-U.S. | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 1,342 | 1,305 |
Adjusted OIBDA | 306 | 301 |
QVC-Germany | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 212 | 250 |
Adjusted OIBDA | 39 | 39 |
QVC-Japan | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 199 | 234 |
Adjusted OIBDA | 39 | 47 |
QVC-U.K. | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 156 | 165 |
Adjusted OIBDA | 28 | 27 |
QVC-Italy | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 29 | 32 |
Adjusted OIBDA | -2 | -2 |
QVC-France | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 0 | 0 |
Adjusted OIBDA | ($3) | $0 |
Information_about_QVCs_Operati3
Information about QVC's Operating Segments (Depreciation/Amortization by Segment) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Depreciation | $33 | $33 |
Amortization | 120 | 111 |
QVC-U.S. | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 16 | 13 |
Amortization | 106 | 94 |
QVC-Germany | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 7 | 8 |
Amortization | 8 | 11 |
QVC-Japan | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 5 | 5 |
Amortization | 2 | 2 |
QVC-U.K. | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 3 | 4 |
Amortization | 3 | 3 |
QVC-Italy | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 2 | 3 |
Amortization | $1 | $1 |
Information_about_QVCs_Operati4
Information about QVC's Operating Segments (Total Assets and CAPEX by Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Total assets | $12,081 | $12,476 |
Capital expenditures, net | 31 | 182 |
QVC-U.S. | ||
Segment Reporting Information [Line Items] | ||
Total assets | 9,982 | 10,133 |
Capital expenditures, net | 23 | 141 |
QVC-Germany | ||
Segment Reporting Information [Line Items] | ||
Total assets | 811 | 915 |
Capital expenditures, net | 2 | 10 |
QVC-Japan | ||
Segment Reporting Information [Line Items] | ||
Total assets | 589 | 644 |
Capital expenditures, net | 0 | 2 |
QVC-U.K. | ||
Segment Reporting Information [Line Items] | ||
Total assets | 477 | 537 |
Capital expenditures, net | 1 | 16 |
QVC-Italy | ||
Segment Reporting Information [Line Items] | ||
Total assets | 214 | 245 |
Capital expenditures, net | 1 | 12 |
QVC-France | ||
Segment Reporting Information [Line Items] | ||
Total assets | 8 | 2 |
Capital expenditures, net | $4 | $1 |
Information_about_QVCs_Operati5
Information about QVC's Operating Segments (Long-lived Assets by Segment) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $972 | $1,026 |
QVC-U.S. | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 455 | 463 |
QVC-Germany | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 181 | 209 |
QVC-Japan | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 171 | 176 |
QVC-U.K. | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 111 | 120 |
QVC-Italy | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 50 | 57 |
QVC-France | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $4 | $1 |
Information_about_QVCs_Operati6
Information about QVC's Operating Segments (Reconciliation of Adjusted OIBDA to Income before Income Taxes) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting [Abstract] | ||
Adjusted OIBDA | $407 | $412 |
Stock-based compensation | -8 | -8 |
Depreciation and amortization | -153 | -144 |
Equity in losses of investee | -1 | -1 |
Interest expense, net | -59 | -62 |
Foreign currency gain (loss) | 10 | -1 |
Income before income taxes | $196 | $196 |
Other_Comprehensive_Income_Acc
Other Comprehensive Income (Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Foreign currency translation adjustments | ||
Beginning balance | ($39) | $139 |
Other comprehensive income attributable to QVC, Inc. stockholder | -101 | 13 |
Ending balance | -140 | 152 |
AOCI | ||
Beginning balance | -39 | 139 |
Other comprehensive income attributable to QVC, Inc. stockholder | -101 | 13 |
Ending balance | ($140) | $152 |
Other_Comprehensive_Income_Com
Other Comprehensive Income (Component of Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments before tax | ($128) | $19 |
Tax (expense) benefit from foreign currency translation gain (loss) | 26 | -3 |
Foreign currency translation adjustments | ($102) | $16 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |
Apr. 15, 2015 | Mar. 31, 2015 | |
7.375% Senior Secured Notes due 2020 | ||
Subsequent Event [Line Items] | ||
Debt instrument interest rate stated percentage | 7.38% | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Loss on extinguishment of debt | $21,000,000 | |
Subsequent Event [Member] | 7.375% Senior Secured Notes due 2020 | ||
Subsequent Event [Line Items] | ||
Debt instrument face amount | 500,000,000 | |
Debt instrument interest rate stated percentage | 7.38% | |
Debt instrument repurchase price including premium | 1,036.88 | |
Debt Instrument face value of individual bonds repurchased | $1,000 |
GuarantorNonGuarantor_Subsidia2
Guarantor/Non-Guarantor Subsidiary Financial Information (Narrative) (Details) | Mar. 31, 2015 |
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | |
Subsidiary Guarantors, Ownership Percentage | 100.00% |
GuarantorNonGuarantor_Subsidia3
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Financial Position) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $400 | $347 | $558 | $457 |
Restricted cash | 12 | 12 | ||
Accounts receivable, net | 836 | 1,196 | ||
Inventories | 965 | 882 | ||
Deferred income taxes | 212 | 210 | ||
Prepaid expenses | 51 | 50 | ||
Total current assets | 2,476 | 2,697 | ||
Property and equipment, net | 972 | 1,026 | ||
Cable and satellite television distribution rights, net | 452 | 461 | ||
Goodwill | 5,033 | 5,091 | ||
Other intangible assets, net | 3,085 | 3,143 | ||
Other noncurrent assets | 63 | 58 | ||
Investments in subsidiaries | 0 | 0 | ||
Total assets | 12,081 | 12,476 | ||
Current liabilities: | ||||
Current portion of debt and capital lease obligations | 8 | 9 | ||
Accounts payable-trade | 554 | 629 | ||
Accrued liabilities | 737 | 885 | ||
Intercompany accounts payable (receivable) | 0 | 0 | ||
Total current liabilities | 1,299 | 1,523 | ||
Long-term portion of debt and capital lease obligations | 4,554 | 4,620 | ||
Deferred compensation | 13 | 17 | ||
Deferred income taxes | 1,069 | 1,121 | ||
Other long-term liabilities | 153 | 149 | ||
Total liabilities | 7,088 | 7,430 | ||
QVC, Inc. stockholder's equity: | ||||
QVC, Inc. stockholder's equity | 4,902 | 4,943 | ||
Noncontrolling interest | 91 | 103 | ||
Total equity | 4,993 | 5,046 | ||
Total liabilities and equity | 12,081 | 12,476 | ||
Parent issuer- QVC, Inc. | ||||
Current assets: | ||||
Cash and cash equivalents | 51 | 2 | 47 | 78 |
Restricted cash | 10 | 10 | ||
Accounts receivable, net | 605 | 909 | ||
Inventories | 734 | 680 | ||
Deferred income taxes | 195 | 192 | ||
Prepaid expenses | 26 | 25 | ||
Total current assets | 1,621 | 1,818 | ||
Property and equipment, net | 268 | 273 | ||
Cable and satellite television distribution rights, net | 0 | 0 | ||
Goodwill | 4,184 | 4,184 | ||
Other intangible assets, net | 981 | 1,023 | ||
Other noncurrent assets | 7 | 1 | ||
Investments in subsidiaries | 4,531 | 4,681 | ||
Total assets | 11,592 | 11,980 | ||
Current liabilities: | ||||
Current portion of debt and capital lease obligations | 2 | 2 | ||
Accounts payable-trade | 313 | 420 | ||
Accrued liabilities | 200 | 282 | ||
Intercompany accounts payable (receivable) | 1,321 | 1,384 | ||
Total current liabilities | 1,836 | 2,088 | ||
Long-term portion of debt and capital lease obligations | 4,506 | 4,565 | ||
Deferred compensation | 13 | 16 | ||
Deferred income taxes | 234 | 269 | ||
Other long-term liabilities | 101 | 99 | ||
Total liabilities | 6,690 | 7,037 | ||
QVC, Inc. stockholder's equity: | ||||
QVC, Inc. stockholder's equity | 4,902 | 4,943 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 4,902 | 4,943 | ||
Total liabilities and equity | 11,592 | 11,980 | ||
Combined subsidiary guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 219 | 123 | 218 | 133 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Total current assets | 219 | 123 | ||
Property and equipment, net | 66 | 68 | ||
Cable and satellite television distribution rights, net | 392 | 388 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 2,051 | 2,051 | ||
Other noncurrent assets | 0 | 0 | ||
Investments in subsidiaries | 1,245 | 1,386 | ||
Total assets | 3,973 | 4,016 | ||
Current liabilities: | ||||
Current portion of debt and capital lease obligations | 0 | 0 | ||
Accounts payable-trade | 0 | 0 | ||
Accrued liabilities | 156 | 143 | ||
Intercompany accounts payable (receivable) | -777 | -921 | ||
Total current liabilities | -621 | -778 | ||
Long-term portion of debt and capital lease obligations | 0 | 0 | ||
Deferred compensation | 0 | 0 | ||
Deferred income taxes | 864 | 877 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 243 | 99 | ||
QVC, Inc. stockholder's equity: | ||||
QVC, Inc. stockholder's equity | 3,730 | 3,917 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 3,730 | 3,917 | ||
Total liabilities and equity | 3,973 | 4,016 | ||
Combined non-guarantor subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 130 | 222 | 293 | 246 |
Restricted cash | 2 | 2 | ||
Accounts receivable, net | 231 | 287 | ||
Inventories | 231 | 202 | ||
Deferred income taxes | 17 | 18 | ||
Prepaid expenses | 25 | 25 | ||
Total current assets | 636 | 756 | ||
Property and equipment, net | 638 | 685 | ||
Cable and satellite television distribution rights, net | 60 | 73 | ||
Goodwill | 849 | 907 | ||
Other intangible assets, net | 53 | 69 | ||
Other noncurrent assets | 56 | 57 | ||
Investments in subsidiaries | 0 | 0 | ||
Total assets | 2,292 | 2,547 | ||
Current liabilities: | ||||
Current portion of debt and capital lease obligations | 6 | 7 | ||
Accounts payable-trade | 241 | 209 | ||
Accrued liabilities | 381 | 460 | ||
Intercompany accounts payable (receivable) | -544 | -463 | ||
Total current liabilities | 84 | 213 | ||
Long-term portion of debt and capital lease obligations | 48 | 55 | ||
Deferred compensation | 0 | 1 | ||
Deferred income taxes | -29 | -25 | ||
Other long-term liabilities | 52 | 50 | ||
Total liabilities | 155 | 294 | ||
QVC, Inc. stockholder's equity: | ||||
QVC, Inc. stockholder's equity | 2,046 | 2,150 | ||
Noncontrolling interest | 91 | 103 | ||
Total equity | 2,137 | 2,253 | ||
Total liabilities and equity | 2,292 | 2,547 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Cable and satellite television distribution rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other noncurrent assets | 0 | 0 | ||
Investments in subsidiaries | -5,776 | -6,067 | ||
Total assets | -5,776 | -6,067 | ||
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 | -5,776 | -6,067 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | -5,776 | -6,067 | ||
Total liabilities and equity | ($5,776) | ($6,067) |
GuarantorNonGuarantor_Subsidia4
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Operations) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||
Net revenue | $1,938 | $1,986 |
Cost of goods sold | 1,221 | 1,256 |
Gross profit | 717 | 730 |
Operating expenses: | ||
Operating | 168 | 178 |
Selling, general and administrative, including stock-based compensation | 150 | 148 |
Depreciation | 33 | 33 |
Amortization | 120 | 111 |
Operating expenses | 471 | 470 |
Operating income | 246 | 260 |
Other (expense) income: | ||
Equity in losses of investee | -1 | -1 |
Interest expense, net | -59 | -62 |
Foreign currency gain (loss) | 10 | -1 |
Intercompany interest (expense) income | 0 | 0 |
Nonoperating (expense) income | -50 | -64 |
Income before income taxes | 196 | 196 |
Income tax expense | -72 | -74 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 |
Net income | 124 | 122 |
Less net income attributable to the noncontrolling interest | -9 | -9 |
Net income attributable to QVC, Inc. stockholder | 115 | 113 |
Parent issuer- QVC, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net revenue | 1,380 | 1,343 |
Cost of goods sold | 859 | 842 |
Gross profit | 521 | 501 |
Operating expenses: | ||
Operating | 101 | 79 |
Selling, general and administrative, including stock-based compensation | 242 | 223 |
Depreciation | 10 | 9 |
Amortization | 59 | 52 |
Operating expenses | 412 | 363 |
Operating income | 109 | 138 |
Other (expense) income: | ||
Equity in losses of investee | 0 | 0 |
Interest expense, net | -58 | -53 |
Foreign currency gain (loss) | 12 | -2 |
Intercompany interest (expense) income | -6 | -5 |
Nonoperating (expense) income | -52 | -60 |
Income before income taxes | 57 | 78 |
Income tax expense | -26 | 20 |
Equity in earnings of subsidiaries, net of tax | 93 | 24 |
Net income | 124 | 122 |
Less net income attributable to the noncontrolling interest | -9 | -9 |
Net income attributable to QVC, Inc. stockholder | 115 | 113 |
Combined subsidiary guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net revenue | 202 | 191 |
Cost of goods sold | 25 | 24 |
Gross profit | 177 | 167 |
Operating expenses: | ||
Operating | 57 | 56 |
Selling, general and administrative, including stock-based compensation | 0 | 1 |
Depreciation | 3 | 1 |
Amortization | 40 | 39 |
Operating expenses | 100 | 97 |
Operating income | 77 | 70 |
Other (expense) income: | ||
Equity in losses of investee | 0 | 0 |
Interest expense, net | 0 | 0 |
Foreign currency gain (loss) | 0 | 0 |
Intercompany interest (expense) income | 11 | 13 |
Nonoperating (expense) income | 11 | 13 |
Income before income taxes | 88 | 83 |
Income tax expense | -25 | -24 |
Equity in earnings of subsidiaries, net of tax | 9 | -48 |
Net income | 72 | 11 |
Less net income attributable to the noncontrolling interest | 0 | 0 |
Net income attributable to QVC, Inc. stockholder | 72 | 11 |
Combined non-guarantor subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net revenue | 657 | 732 |
Cost of goods sold | 386 | 447 |
Gross profit | 271 | 285 |
Operating expenses: | ||
Operating | 89 | 101 |
Selling, general and administrative, including stock-based compensation | 81 | 89 |
Depreciation | 20 | 23 |
Amortization | 21 | 20 |
Operating expenses | 211 | 233 |
Operating income | 60 | 52 |
Other (expense) income: | ||
Equity in losses of investee | -1 | -1 |
Interest expense, net | -1 | -9 |
Foreign currency gain (loss) | -2 | 1 |
Intercompany interest (expense) income | -5 | -8 |
Nonoperating (expense) income | -9 | -17 |
Income before income taxes | 51 | 35 |
Income tax expense | -21 | -70 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 |
Net income | 30 | -35 |
Less net income attributable to the noncontrolling interest | -9 | -9 |
Net income attributable to QVC, Inc. stockholder | 21 | -44 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net revenue | -301 | -280 |
Cost of goods sold | -49 | -57 |
Gross profit | -252 | -223 |
Operating expenses: | ||
Operating | -79 | -58 |
Selling, general and administrative, including stock-based compensation | -173 | -165 |
Depreciation | 0 | 0 |
Amortization | 0 | 0 |
Operating expenses | -252 | -223 |
Operating income | 0 | 0 |
Other (expense) income: | ||
Equity in losses of investee | 0 | 0 |
Interest expense, net | 0 | 0 |
Foreign currency gain (loss) | 0 | 0 |
Intercompany interest (expense) income | 0 | 0 |
Nonoperating (expense) income | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | -102 | 24 |
Net income | -102 | 24 |
Less net income attributable to the noncontrolling interest | 9 | 9 |
Net income attributable to QVC, Inc. stockholder | ($93) | $33 |
GuarantorNonGuarantor_Subsidia5
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||
Net income | $124 | $122 |
Foreign currency translation adjustments | -102 | 16 |
Total comprehensive income (loss) | 22 | 138 |
Comprehensive income attributable to noncontrolling interest | -8 | -12 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | 14 | 126 |
Parent issuer- QVC, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 124 | 122 |
Foreign currency translation adjustments | -102 | 16 |
Total comprehensive income (loss) | 22 | 138 |
Comprehensive income attributable to noncontrolling interest | -8 | -12 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | 14 | 126 |
Combined subsidiary guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 72 | 11 |
Foreign currency translation adjustments | 0 | 0 |
Total comprehensive income (loss) | 72 | 11 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | 72 | 11 |
Combined non-guarantor subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 30 | -35 |
Foreign currency translation adjustments | -102 | 16 |
Total comprehensive income (loss) | -72 | -19 |
Comprehensive income attributable to noncontrolling interest | -8 | -12 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | -80 | -31 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | -102 | 24 |
Foreign currency translation adjustments | 102 | -16 |
Total comprehensive income (loss) | 0 | 8 |
Comprehensive income attributable to noncontrolling interest | 8 | 12 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | $8 | $20 |
GuarantorNonGuarantor_Subsidia6
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Cash Flow) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net cash provided by operating activities | $285 | $261 |
Investing activities: | ||
Capital expenditures, net | -31 | -29 |
Expenditures for cable and satellite television distribution rights, net | -44 | -8 |
Changes in other noncurrent assets | -3 | -2 |
Intercompany investing activities | 0 | 0 |
Net cash used in investing activities | -78 | -39 |
Financing activities: | ||
Principal payments of debt and capital lease obligations | -412 | -1,188 |
Principal borrowings of debt from senior secured credit facility | 351 | 384 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | 999 |
Payment of debt origination fees | -3 | -12 |
Other financing activities | -1 | 7 |
Dividends paid to Liberty | -59 | -286 |
Dividends paid to noncontrolling interest | -20 | -25 |
Net short-term intercompany debt (repayments) borrowings | 0 | 0 |
Other intercompany financing activities | 0 | 0 |
Net cash used in financing activities | -144 | -121 |
Effect of foreign exchange rate changes on cash and cash equivalents | -10 | 0 |
Net increase (decrease) in cash and cash equivalents | 53 | 101 |
Cash and cash equivalents, beginning of period | 347 | 457 |
Cash and cash equivalents, end of period | 400 | 558 |
Parent issuer- QVC, Inc. | ||
Operating activities: | ||
Net cash provided by operating activities | 118 | 107 |
Investing activities: | ||
Capital expenditures, net | -21 | -12 |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 |
Changes in other noncurrent assets | -4 | -2 |
Intercompany investing activities | 243 | 65 |
Net cash used in investing activities | 218 | 51 |
Financing activities: | ||
Principal payments of debt and capital lease obligations | -410 | -1,186 |
Principal borrowings of debt from senior secured credit facility | 351 | 384 |
Proceeds from issuance of senior secured notes, net of original issue discount | 999 | |
Payment of debt origination fees | -3 | -12 |
Other financing activities | -1 | 7 |
Dividends paid to Liberty | -59 | -286 |
Dividends paid to noncontrolling interest | 0 | 0 |
Net short-term intercompany debt (repayments) borrowings | -63 | -84 |
Other intercompany financing activities | -102 | -11 |
Net cash used in financing activities | -287 | -189 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 49 | -31 |
Cash and cash equivalents, beginning of period | 2 | 78 |
Cash and cash equivalents, end of period | 51 | 47 |
Combined subsidiary guarantors | ||
Operating activities: | ||
Net cash provided by operating activities | 106 | 98 |
Investing activities: | ||
Capital expenditures, net | -1 | 0 |
Expenditures for cable and satellite television distribution rights, net | -44 | -8 |
Changes in other noncurrent assets | 0 | 0 |
Intercompany investing activities | 150 | 54 |
Net cash used in investing activities | 105 | 46 |
Financing activities: | ||
Principal payments of debt and capital lease obligations | 0 | 0 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | |
Payment of debt origination fees | 0 | 0 |
Other financing activities | 0 | 0 |
Dividends paid to Liberty | 0 | 0 |
Dividends paid to noncontrolling interest | 0 | 0 |
Net short-term intercompany debt (repayments) borrowings | 144 | 73 |
Other intercompany financing activities | -259 | -132 |
Net cash used in financing activities | -115 | -59 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 96 | 85 |
Cash and cash equivalents, beginning of period | 123 | 133 |
Cash and cash equivalents, end of period | 219 | 218 |
Combined non-guarantor subsidiaries | ||
Operating activities: | ||
Net cash provided by operating activities | 61 | 56 |
Investing activities: | ||
Capital expenditures, net | -9 | -17 |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 |
Changes in other noncurrent assets | 1 | 0 |
Intercompany investing activities | 0 | 0 |
Net cash used in investing activities | -8 | -17 |
Financing activities: | ||
Principal payments of debt and capital lease obligations | -2 | -2 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | |
Payment of debt origination fees | 0 | 0 |
Other financing activities | 0 | 0 |
Dividends paid to Liberty | 0 | 0 |
Dividends paid to noncontrolling interest | -20 | -25 |
Net short-term intercompany debt (repayments) borrowings | -81 | 11 |
Other intercompany financing activities | -32 | 24 |
Net cash used in financing activities | -135 | 8 |
Effect of foreign exchange rate changes on cash and cash equivalents | -10 | 0 |
Net increase (decrease) in cash and cash equivalents | -92 | 47 |
Cash and cash equivalents, beginning of period | 222 | 246 |
Cash and cash equivalents, end of period | 130 | 293 |
Eliminations | ||
Operating activities: | ||
Net cash provided by operating activities | 0 | 0 |
Investing activities: | ||
Capital expenditures, net | 0 | 0 |
Expenditures for cable and satellite television distribution rights, net | 0 | 0 |
Changes in other noncurrent assets | 0 | 0 |
Intercompany investing activities | -393 | -119 |
Net cash used in investing activities | -393 | -119 |
Financing activities: | ||
Principal payments of debt and capital lease obligations | 0 | 0 |
Principal borrowings of debt from senior secured credit facility | 0 | 0 |
Proceeds from issuance of senior secured notes, net of original issue discount | 0 | |
Payment of debt origination fees | 0 | 0 |
Other financing activities | 0 | 0 |
Dividends paid to Liberty | 0 | 0 |
Dividends paid to noncontrolling interest | 0 | 0 |
Net short-term intercompany debt (repayments) borrowings | 0 | 0 |
Other intercompany financing activities | 393 | 119 |
Net cash used in financing activities | 393 | 119 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 |