Document and Entity Information
Document and Entity Information Document | 6 Months Ended |
Jun. 30, 2019shares | |
Document Information [Abstract] | |
Entity Registrant Name | QVC INC |
Entity Central Index Key | 0001254699 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 1 |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Current Reporting Status submitted electronically | Yes |
Entity Shell Company | false |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 450 | $ 543 |
Restricted cash | 8 | 7 |
Accounts receivable, less allowance for doubtful accounts of $114 at June 30, 2019 and $112 at December 31, 2018 | 1,254 | 1,787 |
Inventories | 1,306 | 1,280 |
Prepaid expenses and other current assets | 135 | 216 |
Total current assets | 3,153 | 3,833 |
Noncurrent assets: | ||
Property and equipment, net of accumulated depreciation of $1,348 at June 30, 2019 and $1,281 at December 31, 2018 | 1,193 | 1,165 |
Operating Lease, Right-of-Use Asset | 148 | 0 |
Television distribution rights, net | 199 | 140 |
Goodwill | 5,976 | 5,972 |
Other intangible assets, net | 3,661 | 3,666 |
Other noncurrent assets | 69 | 80 |
Total assets | 14,399 | 14,856 |
Current liabilities: | ||
Current portion of debt and finance lease obligations | 20 | 421 |
Accounts payable-trade | 702 | 1,008 |
Accrued liabilities | 857 | 1,026 |
Total current liabilities | 1,579 | 2,455 |
Noncurrent liabilities: | ||
Long-term portion of debt and finance lease obligations | 5,072 | 4,699 |
Deferred income taxes | 690 | 700 |
Other long-term liabilities | 315 | 173 |
Total liabilities | 7,656 | 8,027 |
QVC, Inc. stockholder's equity: | ||
Common stock, $0.01 par value, 1 authorized share | 0 | 0 |
Additional paid-in capital | 9,139 | 9,123 |
Accumulated deficit | (2,373) | (2,269) |
Accumulated other comprehensive loss | (139) | (144) |
Total QVC, Inc. stockholder's equity | 6,627 | 6,710 |
Noncontrolling interest | 116 | 119 |
Total equity | 6,743 | 6,829 |
Total liabilities and equity | $ 14,399 | $ 14,856 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 114 | $ 112 |
Accumulated depreciation | $ 1,348 | $ 1,281 |
Common stock par value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1 | 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | $ 2,514 | $ 2,556 | $ 5,015 | $ 5,158 |
Operating costs and expenses: | ||||
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 1,578 | 1,589 | 3,188 | 3,245 |
Operating | 179 | 209 | 356 | 422 |
Selling, general and administrative, including transaction related costs and stock-based compensation | 268 | 270 | 538 | 547 |
Depreciation | 54 | 43 | 100 | 87 |
Amortization | 70 | 55 | 142 | 111 |
Operating expenses | 2,149 | 2,166 | 4,324 | 4,412 |
Operating income | 365 | 390 | 691 | 746 |
Other (expense) income: | ||||
Equity in losses of investee | (1) | (2) | (1) | (1) |
Gain (Loss) on Derivative Instruments, Net, Pretax | (1) | 0 | (3) | 1 |
Interest expense, net | (60) | (68) | (121) | (133) |
Foreign currency gain (loss) | 0 | 2 | (3) | 1 |
Nonoperating expense | (62) | (68) | (128) | (132) |
Income before income taxes | 303 | 322 | 563 | 614 |
Income tax expense | (85) | (78) | (159) | (158) |
Net income | 218 | 244 | 404 | 456 |
Less net income attributable to the noncontrolling interest | (12) | (11) | (22) | (22) |
Net income attributable to QVC, Inc. stockholder | $ 206 | $ 233 | $ 382 | $ 434 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 218 | $ 244 | $ 404 | $ 456 |
Foreign currency translation adjustments, net of tax | 14 | (96) | 8 | (26) |
Total comprehensive income | 232 | 148 | 412 | 430 |
Comprehensive income attributable to noncontrolling interest | (15) | (6) | (25) | (24) |
Comprehensive income attributable to QVC, Inc. stockholder | $ 217 | $ 142 | $ 387 | $ 406 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 404 | $ 456 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in income of investee | 1 | 1 |
Deferred income taxes | (9) | 1 |
Foreign currency loss (gain) | 3 | (1) |
Depreciation | 100 | 87 |
Amortization | 142 | 111 |
Change in fair value of financial instruments and noncash interest | 7 | 3 |
Stock-based compensation | 20 | 24 |
Change in other long-term liabilities | (6) | 2 |
Other non-cash charges, net | 5 | 0 |
Effects of changes in working capital items | 32 | (33) |
Net cash provided by operating activities | 699 | 651 |
Investing activities: | ||
Capital expenditures | (153) | (74) |
Expenditures for television distribution rights | (124) | (61) |
Changes in other noncurrent assets | (13) | 0 |
Other investing activities | 29 | (8) |
Net cash used in investing activities | (261) | (143) |
Financing activities: | ||
Principal payments of senior secured credit facility and finance lease obligations | (1,425) | (1,608) |
Principal borrowings of debt from senior secured credit facility | 1,795 | 1,458 |
Repayments of Secured Debt | (400) | 0 |
Capital contribution received from Qurate Retail, Inc. | 0 | 140 |
Dividends paid to Qurate Retail, Inc. | (469) | (243) |
Dividends paid to noncontrolling interest | (28) | (23) |
Other financing activities | (4) | (14) |
Net cash used in financing activities | (531) | (290) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 1 | 4 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (92) | 222 |
Cash, cash equivalents and restricted cash, end of period | 450 | |
Cash, cash equivalents and restricted cash, beginning of period | 550 | 290 |
Cash, cash equivalents and restricted cash, end of period | 458 | 512 |
Effects of changes in working capital items: | ||
Decrease in accounts receivable | 539 | 616 |
Increase in inventories | (22) | (118) |
Decrease (increase) in prepaid expenses and other current assets | 41 | (76) |
Decrease in accounts payable-trade | (282) | (203) |
Decrease in accrued liabilities and other | (244) | (252) |
Effects of changes in working capital items | $ 32 | $ (33) |
Consolidated Statement of Equit
Consolidated Statement of Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interest |
Balance at Dec. 31, 2017 | $ 5,796 | $ 0 | $ 8,576 | $ (2,797) | $ (93) | $ 110 |
Balance beginning (in shares) at Dec. 31, 2017 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 456 | 0 | 434 | 0 | 22 | |
Foreign currency translation adjustments, net of tax | (26) | 0 | 0 | (28) | 2 | |
Capital contribution received from Qurate Retail, Inc. | 140 | 140 | 0 | 0 | 0 | |
Dividends paid to Qurate Retail, Inc. and noncontrolling interest and other | (266) | 0 | (243) | 0 | (23) | |
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc. | (3) | 0 | (3) | 0 | 0 | |
Withholding taxes on net share settlements of stock-based compensation | (16) | (16) | 0 | 0 | 0 | |
Stock-based compensation | 24 | 24 | 0 | 0 | 0 | |
Balance at Jun. 30, 2018 | 6,118 | $ 0 | 8,724 | (2,596) | (121) | 111 |
Balance ending (in shares) at Jun. 30, 2018 | 1 | |||||
Balance at Mar. 31, 2018 | 5,970 | $ 0 | 8,713 | (2,818) | (30) | 105 |
Balance beginning (in shares) at Mar. 31, 2018 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 244 | 0 | 233 | 0 | 11 | |
Foreign currency translation adjustments, net of tax | (96) | 0 | 0 | (91) | (5) | |
Dividends paid to Qurate Retail, Inc. and noncontrolling interest and other | (10) | 0 | (10) | 0 | 0 | |
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc. | (1) | 0 | (1) | 0 | 0 | |
Withholding taxes on net share settlements of stock-based compensation | (1) | (1) | 0 | 0 | 0 | |
Stock-based compensation | 12 | 12 | 0 | 0 | 0 | |
Balance at Jun. 30, 2018 | 6,118 | $ 0 | 8,724 | (2,596) | (121) | 111 |
Balance ending (in shares) at Jun. 30, 2018 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 13 | 0 | 13 | 0 | 0 | |
Balance at Dec. 31, 2018 | 6,829 | $ 0 | 9,123 | (2,269) | (144) | 119 |
Balance beginning (in shares) at Dec. 31, 2018 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 404 | 0 | 382 | 0 | 22 | |
Foreign currency translation adjustments, net of tax | 8 | 0 | 0 | 5 | 3 | |
Capital contribution received from Qurate Retail, Inc. | 0 | |||||
Dividends paid to Qurate Retail, Inc. and noncontrolling interest and other | (497) | 0 | (469) | 0 | (28) | |
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc. | (17) | 0 | (17) | 0 | 0 | |
Withholding taxes on net share settlements of stock-based compensation | (4) | (4) | 0 | 0 | 0 | |
Stock-based compensation | 20 | 20 | 0 | 0 | 0 | |
Balance at Jun. 30, 2019 | 6,743 | $ 0 | 9,139 | (2,373) | (139) | 116 |
Balance ending (in shares) at Jun. 30, 2019 | 1 | |||||
Balance at Mar. 31, 2019 | 6,639 | $ 0 | 9,129 | (2,447) | (150) | 107 |
Balance beginning (in shares) at Mar. 31, 2019 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 218 | 0 | 206 | 0 | 12 | |
Foreign currency translation adjustments, net of tax | 14 | 0 | 0 | 11 | 3 | |
Dividends paid to Qurate Retail, Inc. and noncontrolling interest and other | (121) | 0 | (115) | 0 | (6) | |
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc. | (17) | 0 | (17) | 0 | 0 | |
Withholding taxes on net share settlements of stock-based compensation | (1) | (1) | 0 | 0 | 0 | |
Stock-based compensation | 11 | 11 | 0 | 0 | 0 | |
Balance at Jun. 30, 2019 | $ 6,743 | $ 0 | $ 9,139 | $ (2,373) | $ (139) | $ 116 |
Balance ending (in shares) at Jun. 30, 2019 | 1 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of presentation | Basis of Presentation QVC, Inc. and its consolidated subsidiaries ("QVC" or the "Company") is a retailer of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised shopping programs, the Internet and mobile applications. In the United States ("U.S."), QVC's televised shopping programs, including live and recorded content, are broadcast across multiple channels nationally on a full-time basis, including QVC, QVC2, HSN and HSN2. During the first quarter of 2019, the Company transitioned its Beauty iQ channel to QVC 3. The Company's U.S. programming is also available on QVC.com and HSN.com, QVC's U.S. websites; mobile applications via streaming video; over-the-air broadcasters; and over-the-top content platforms (Roku, Apple TV, Amazon Fire, Facebook, etc.). QVC's digital platforms enable consumers to purchase goods offered on our broadcast programming, along with a wide assortment of products that are available only on QVC.com and HSN.com. QVC.com, HSN.com and our other digital platforms (including our mobile applications, social pages and others) are natural extensions of our business model, allowing customers to engage in our shopping experience wherever they are, with live or on-demand content customized to the device they are using. In addition to offering video content, QVC.com and HSN.com allows shoppers to browse, research, compare and perform targeted searches for products, read customer reviews, control the order-entry process and conveniently access their account. Internationally, QVC's televised shopping programs, including live and recorded content, are distributed to households outside of the U.S., primarily in Germany, Austria, Japan, the United Kingdom ("U.K."), the Republic of Ireland and Italy. In some of the countries where QVC operates, QVC's televised shopping programs are broadcast across multiple QVC channels: QVC Style and QVC2 in Germany and QVC Beauty, QVC Extra and QVC Style in the U.K. Similar to the U.S., our international businesses also engage customers via websites, mobile applications, and social pages. QVC's international business employs product sourcing teams who select products tailored to the interests of each local market. The Company's Japanese operations ("QVC-Japan") are conducted through a joint venture with Mitsui & Co., LTD ("Mitsui"). 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 six months ended June 30, 2019 and 2018 , QVC-Japan paid dividends to Mitsui of $28 million and $23 million , respectively. 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. 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. The Company is an indirect wholly-owned subsidiary of Qurate Retail, Inc. ("Qurate Retail") (formerly Liberty Interactive Corporation) (Nasdaq: QRTEA and QRTEB), which owns interests in a broad range of digital commerce businesses, including Qurate Retail's other wholly-owned subsidiaries Zulily, LLC ("Zulily"), HSN, Inc. ("HSN") prior to the transfer of ownership of HSN to QVC (described below), Cornerstone Brands, Inc. (former subsidiary of HSN prior to the transfer of ownership of HSN to QVC, "CBI") and other minority investments. QVC is part of the Qurate Retail Group ("QRG"), formerly QVC Group, a portfolio of brands including QVC, HSN, Zulily and CBI. On March 9, 2018, Qurate Retail, GCI Liberty, Inc. ("GCI Liberty") (formerly General Communication, Inc.), an Alaska corporation, and Liberty Interactive LLC, a Delaware limited liability company and a direct wholly-owned subsidiary of Qurate Retail completed the previously announced transactions whereby Qurate Retail acquired GCI Liberty through a reorganization in which certain assets and liabilities attributed to Qurate Retail’s Ventures Group were contributed to GCI Liberty in exchange for a controlling interest in GCI Liberty. Qurate Retail then effected a tax-free separation of its controlling interest in the combined company. Qurate Retail's QVC Group common stock became the only outstanding common stock of Qurate Retail. On October 1, 2015, Qurate Retail acquired all of the outstanding shares of Zulily (now known as Zulily, LLC). Zulily is an online retailer offering customers a fun and entertaining shopping experience with a fresh selection of new product styles launched each day for a limited time period. Zulily is not part of the results of operations or financial position of QVC presented in these condensed consolidated financial statements. During each of the six months ended June 30, 2019 and 2018 , QVC and Zulily engaged in multiple transactions relating to sales, sourcing of merchandise, marketing initiatives and business advisory services. QVC allocated expenses of $4 million and $2 million to Zulily for the six months ended June 30, 2019 and 2018, respectively. Zulily allocated expenses of $4 million and $3 million to QVC for the six months ended June 30, 2019 and 2018, respectively. On December 31, 2018, QVC amended and restated its senior secured credit facility (the "Fourth Amended and Restated Credit Agreement") increasing the revolving credit facility from $2.65 billion to $3.65 billion as explained further in note 6. The Fourth Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by QVC or Zulily. Under the terms of the Fourth Amended and Restated Credit Agreement, QVC and Zulily are jointly and severally liable for all amounts borrowed on the $400 million tranche. In accordance with the accounting guidance for obligations resulting from joint and several liability arrangements, QVC will record a liability for amounts it has borrowed under the credit facility plus any additional amount it expects to repay on behalf of Zulily. As of June 30, 2019, there was $168 million borrowed by Zulily on the $400 million tranche of the Fourth Amended and Restated Credit Agreement , none of which the Company expects to repay on behalf of Zulily. On December 29, 2017, Qurate Retail completed the acquisition of the remaining 62% ownership interest of HSN that it did not already own in an all-stock transaction. On December 31, 2018, Qurate Retail transferred its 100% ownership interest in HSN to QVC through a transaction among entities under common control. As a result of the transaction, the assets and liabilities of HSN (excluding its ownership interest in CBI) were transferred from Qurate Retail at Qurate Retail's historical cost to QVC through an equity contribution. CBI remained a subsidiary of Qurate Retail outside of the QVC legal structure. Beginning January 1, 2019, the Company's U.S. operations and HSN were combined to form the "QxH" reportable operating segment (see note 12). As a result of the common control transaction with Qurate Retail, the Company retrospectively adjusted certain balances within the consolidated financial statements for the three and six months ended June 30, 2018 , in order to combine the financial results of the Company and HSN since Qurate Retail's acquisition of HSN on December 29, 2017. All periods presented are prepared on a combined basis and are referred to as the condensed consolidated financial statements herein. All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. QVC engages with CBI, which is a wholly owned subsidiary of Qurate Retail and prior to the common control transaction between QVC and Qurate Retail, included as part of HSN. CBI is not part of the results of operations or financial position of QVC presented in these consolidated financial statements. During the six months ended June 30, 2019, QVC and CBI engaged in multiple transactions relating to sourcing of merchandise, personnel and business advisory services. QVC allocated expenses of $11 million and $26 million to CBI for the six months ended June 30, 2019 and 2018, respectively. CBI allocated expenses of $1 million and $12 million to QVC for the six months ended June 30, 2019 and 2018, respectively. CBI also repaid a $29 million note receivable to QVC during the six months ended June 30, 2019. On October 2018, QRG announced a series of initiatives designed to better position its QxH businesses (“QRG Initiatives”). As part of the QRG Initiatives, QVC will close its fulfillment centers in Lancaster, Pennsylvania and Roanoke, Virginia and has entered into an agreement to lease a new fulfillment center in Bethlehem, Pennsylvania, commencing in 2019 (see note 7). In the fourth quarter of 2018, QVC announced the potential closure of its operations in France. The formal announcement to execute the closure was made in March 2019 and broadcasting for QVC in France was subsequently terminated on March 13, 2019. The condensed consolidated financial statements include the accounts of QVC, Inc. 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, 2018, 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 ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in QVC's Annual Report on Form 10-K for the year ended December 31, 2018. 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 and the disclosure of contingent 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, internally-developed software, valuation of acquired intangible assets and goodwill and income taxes. Adoption of new accounting pronouncements In February 2016 and subsequently, the Financial Accounting Standards Board ("FASB") issued new guidance which revises the accounting related to lessee accounting as part of Accounting Standards Codification ("ASC") 842. Under the new guidance, lessees are required to recognize a lease liability and a right-of-use asset for most operating leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The Company adopted ASC 842 on January 1, 2019 utilizing the modified retrospective transition approach and did not restate comparative periods. The Company elected the package of practical expedients permitted under the transition guidance, which allows it to carry forward its historical lease classification, its determination regarding whether a contract contains a lease and any initial indirect costs that had existed prior to the adoption of this new standard. The Company also elected to combine both lease and non-lease components and elected for all short leases with a term of less than 12 months to not record a related operating lease right-of-use asset and operating lease liability on the consolidated balance sheet. The Company recognized $92 million of operating lease right-of-use assets, $18 million in short-term operating lease liabilities and $87 million of long-term operating lease liabilities on the consolidated balance sheet upon adoption of the new standard. The operating lease liabilities were determined based on the present value of the remaining minimum rental payments and the operating lease right-of-use asset was determined based on the value of the lease liabilities, adjusted for deferred rent balances of $13 million , which were previously included in accrued liabilities and other long-term liabilities. Accounting pronouncements issued but not adopted In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), which addresses the effect of the change in the U.S. federal corporate tax rate due to the enactment of the December 22, 2017 Tax Cuts and Jobs Act on items within accumulated other comprehensive income (loss). The Company has elected not to adopt this guidance as there would have been no significant effect of the standard on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles- Goodwill and Other- Internal-Use Software (Subtopic 350-40 ), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance will be effective for the Company in the first quarter of 2020 with early adoption permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
Television Distribution Rights,
Television Distribution Rights, Net | 6 Months Ended |
Jun. 30, 2019 | |
Television Distribution Rights [Abstract] | |
Television Distribution Rights, Net | Television Distribution Rights, Net Television distribution rights consisted of the following: (in millions) June 30, 2019 December 31, 2018 Television distribution rights $ 769 723 Less accumulated amortization (570 ) (583 ) Television distribution rights, net $ 199 140 The Company recorded amortization expense of $32 million and $16 million for the three months ended June 30, 2019 and 2018 , respectively, related to television distribution rights. For the six months ended June 30, 2019 and 2018 , amortization expense for television distribution rights was $66 million and $32 million , respectively. As of June 30, 2019 , related amortization expense for each of the next five years ended December 31 was as follows (in millions): Remainder of 2019 $ 65 2020 117 2021 14 2022 3 2023 — |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill disclosure | Goodwill The changes in the carrying amount of goodwill for the six months ended June 30, 2019 were as follows: (in millions) QxH QVC-International Total Balance as of December 31, 2018 $ 5,112 860 5,972 Exchange rate fluctuations — 4 4 Balance as of June 30, 2019 $ 5,112 864 5,976 |
Other Intangible Assets, Net
Other Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2019 | |
Other Intangible Assets [Abstract] | |
Intangible assets disclosure | Other Intangible Assets, Net Other intangible assets consisted of the following: June 30, 2019 December 31, 2018 (in millions) Gross Accumulated Other intangible assets, net Gross Accumulated Other intangible assets, net Purchased and internally developed software $ 937 (666 ) 271 890 (640 ) 250 Affiliate and customer relationships 2,830 (2,474 ) 356 2,831 (2,450 ) 381 Debt origination fees 10 (1 ) 9 10 — 10 Trademarks (indefinite life) 3,025 — 3,025 3,025 — 3,025 $ 6,802 (3,141 ) 3,661 6,756 (3,090 ) 3,666 The Company recorded amortization expense of $38 million and $39 million for the three months ended June 30, 2019 and 2018 , respectively, related to other intangible assets. For the six months ended June 30, 2019 and 2018 , amortization expense for other intangible assets was $76 million and $79 million , respectively. As of June 30, 2019 , the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions): Remainder of 2019 $ 84 2020 136 2021 112 2022 81 2023 67 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities [Abstract] | |
Accrued liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (in millions) June 30, 2019 December 31, 2018 Accounts payable non-trade $ 303 314 Allowance for sales returns 158 242 Accrued compensation and benefits 112 146 Sales and other taxes 64 101 Accrued interest 56 58 Income taxes 47 37 Deferred revenue 25 24 Accrued cable distribution fees 19 39 Other 73 65 $ 857 1,026 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt disclosure | Long-Term Debt and Finance Lease Obligations Long-term debt and finance lease obligations consisted of the following: (in millions) June 30, 2019 December 31, 2018 3.125% Senior Secured Notes due 2019, net of original issue discount $ — 399 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 6.375% Senior Secured Notes due 2067 225 225 Senior secured credit facility 1,565 1,185 Finance lease obligations 178 188 Less debt issuance costs, net (24 ) (25 ) Total debt and finance lease obligations 5,092 5,120 Less current portion (20 ) (421 ) Long-term portion of debt and finance lease obligations $ 5,072 4,699 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. With exception of the notes in the following paragraph, the interest on QVC's senior secured notes is payable semi-annually. The 3.125% senior secured notes due 2019 were repaid in April 2019. In September 2018, QVC completed a registered debt offering for $225 million of 6.375% Senior Secured Notes due 2067 (the "2067 Notes") at par. The proceeds were used to partially repay existing indebtedness under QVC's senior secured credit facility and for general corporate purposes. The costs to complete the financing were deferred and are being amortized to interest expense over the term of the 2067 Notes. Interest on the 2067 Notes will be paid quarterly in March, June, September and December. QVC has the option to call the 2067 Notes after 5 years at par value. Senior Secured Credit Facility On December 31, 2018, QVC entered into the Fourth Amended and Restated Credit Agreement with Zulily as borrowers (collectively, the “Borrowers”) which is a multi-currency facility that provides for a $3.65 billion revolving credit facility with a $450 million sub-limit for standby letters of credit and $1.5 billion of uncommitted incremental revolving loan commitments or incremental term loans. The Fourth Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by the Company or Zulily with a $50 million sub-limit for standby letters of credit (see note 1). The remaining $3.25 billion and any incremental loans may be borrowed only by the Company. Borrowings that are alternate base rate loans will bear interest at a per annum rate equal to the base rate plus a margin that varies between 0.25% and 0.75% depending on the Borrowers’ combined ratio of Consolidated Total Debt to Consolidated EBITDA (the “Combined Consolidated Leverage Ratio”). Borrowings that are London Interbank Offered Rate ("LIBOR") loans will bear interest at a per annum rate equal to the applicable LIBOR rate plus a margin that varies between 1.25% and 1.75% depending on the Borrowers’ Combined Consolidated Leverage Ratio. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. No mandatory prepayments will be required other than when borrowings and letter of credit usage exceed availability; provided that, if Zulily ceases to be controlled by Qurate Retail, all of its loans must be repaid and its letters of credit cash collateralized. The facility matures on December 31, 2023. Payment of loans may be accelerated following certain customary events of default. QVC had $1,895 million available under the terms of the Fourth Amended and Restated Credit Agreement as of June 30, 2019 , including the portion available under the $400 million tranche that Zulily may also borrow on. The interest rate on the Fourth Amended and Restated Credit Agreement was 3.9% as of June 30, 2019 . The payment and performance of the Borrowers’ obligations under the Fourth Amended and Restated Credit Agreement are guaranteed by each of QVC’s Material Domestic Subsidiaries (as defined in the Fourth Amended and Restated Credit Agreement). Further, the borrowings under the Fourth Amended and Restated Credit Agreement are secured, pari passu with QVC’s existing notes, by a pledge of all of QVC’s equity interests. The payment and performance of the Borrowers’ obligations with respect to the $400 million tranche available to both QVC and Zulily are also guaranteed by each of Zulily’s Material Domestic Subsidiaries (as defined in the Fourth Amended and Restated Credit Agreement), if any, and are secured by a pledge of all of Zulily’s equity interests. The Fourth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including certain restrictions on the Company and Zulily and each of their respective 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 and the Borrowers’ Combined Consolidated Leverage Ratio. Interest Rate Swap Arrangements During the year ended December 31, 2016, QVC entered into a three-year interest rate swap arrangement with a notional amount of $125 million to mitigate the interest rate risk associated with interest payments related to its variable rate debt. The swap arrangement did not qualify as a cash flow hedge under U.S. GAAP. Accordingly, changes in the fair value of the swap are reflected in (losses) gains on financial instruments in the accompanying condensed consolidated statements of operations. The swap arrangement expired in June 2019. In July 2019, the Company entered into a three-year interest swap arrangement with a notional amount of $125 million . The new swap arrangement will not qualify as a cash flow hedge under U.S. GAAP. As of December 31, 2017, HSN had an outstanding interest rate swap that effectively converted $250 million of its variable rate bank credit facility to a fixed rate of 1.05% with a maturity date in January 2020. The Company accounted for the interest rate swap at fair value with changes recorded through (losses) gains on financial instruments in the condensed consolidated statements of operations. On December 31, 2018, the interest rate swap was terminated as a result of the termination of HSN's $1.25 billion five-year syndicated credit agreement entered into on January 27, 2015. Subsequently, QVC entered into a thirteen month interest rate swap arrangement with the same terms. The new swap instrument does not qualify as a cash flow hedge and the fair value of the swap instrument was in a net asset position of approximately $1 million as of June 30, 2019, which was included in prepaid expenses and other current assets. Other Debt Related Information QVC was in compliance with all of its debt covenants as of June 30, 2019 . The weighted average interest rate applicable to all of the outstanding debt (excluding finance leases) prior to amortization of bond discounts and related debt issuance costs was 4.6% as of June 30, 2019 . |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Disaggregated revenue by segment and product category consisted of the following: Three months ended June 30, 2019 Six months ended June 30, 2019 (in millions) QxH QVC-International Total QxH QVC-International Total Home $ 655 231 886 1,334 478 1,812 Apparel 344 108 452 670 220 890 Beauty 317 158 475 609 301 910 Accessories 247 65 312 467 127 594 Electronics 173 22 195 354 47 401 Jewelry 93 50 143 205 102 307 Other revenue 45 6 51 92 9 101 Total net revenue $ 1,874 640 2,514 3,731 1,284 5,015 Three months ended June 30, 2018 Six months ended June 30, 2018 (in millions) QxH QVC-International Total QxH QVC-International Total Home $ 651 235 886 1,377 495 1,872 Apparel 378 116 494 703 235 938 Beauty 316 158 474 622 302 924 Accessories 230 72 302 448 139 587 Electronics 164 22 186 338 48 386 Jewelry 113 48 161 245 103 348 Other revenue 48 5 53 93 10 103 Total net revenue $ 1,900 656 2,556 3,826 1,332 5,158 Consumer Product Revenue and Other Revenue QVC's revenue includes sales of consumer products in the following categories; home, apparel, beauty, accessories, electronics and jewelry, which are primarily sold through live merchandise-focused televised shopping programs and via our websites and other interactive media. Other revenue consists primarily of income generated from our Private Label Credit Card ("PLCC") program in which a large consumer financial services company provides revolving credit directly to QVC's customers for the sole purpose of purchasing merchandise or services with a PLCC. In return, the Company receives a portion of the net economics of the credit card program. Revenue Recognition For the three and six months ended June 30, 2019 and 2018 , respectively, revenue is recognized when obligations with our customer are satisfied; generally this occurs at the time of shipment to our customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration we expect to receive in exchange for transferring goods, net of allowances for returns. The Company generally recognizes revenue related to the PLCC program over time as the PLCC is used by QVC's customers. Sales, value add, use and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company has elected to treat shipping and handling activities that occur after the customer obtains control of the goods as a fulfillment cost and not as a promised good or service. Accordingly, the Company accrues the related shipping costs and recognizes revenue upon delivery of the goods to the shipping carrier. In electing this accounting policy, all shipping and handling activities will be treated as fulfillment costs. The Company generally has payment terms with its customers of one year or less and has elected the practical expedient applicable to such contracts not to consider the time value of money. Significant Judgments Our products are generally sold with a right of return and we may provide other credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. The Company has determined that it is generally the principal in vendor arrangements as the Company can establish control over the goods prior to shipment. Accordingly, the Company records revenue for these arrangements on a gross basis. |
Lease and Transponder Service A
Lease and Transponder Service Agreements | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases of lessee disclosure | Leases The Company has finance lease agreements with transponder and transmitter network suppliers for the right to transmit its signals in the U.S., Germany and France. The Company is also party to a finance lease agreement for data processing hardware and a warehouse. QVC also leases data processing equipment, facilities, office space and land. These leases are classified as operating leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Our leases have remaining lease terms of less than 1 year to 15 years , some of which may include the option to extend or terminate the leases. The components of lease cost for the three and six months ended June 30, 2019 , were as follows: Three months ended Six months ended (in millions) June 30, 2019 June 30, 2019 Finance lease cost Depreciation of leased assets $ 5 10 Interest on lease liabilities 2 4 Total finance lease cost 7 14 Operating lease cost 8 14 Total lease cost $ 15 28 For the three months ended June 30, 2018 , the Company recorded depreciation expense on finance leases (previously referred to as capital leases) of $4 million and recorded operating lease expenses of $9 million . For the six months ended June 30, 2018 the Company recorded depreciation expense on finance leases (previously referred to as capital leases) of $8 million and recorded operating lease expenses of $18 million . The remaining weighted-average lease term and the weighted-average discount rate were as follows: June 30, 2019 Weighted-average remaining lease term (years): Finance leases 9.3 Operating leases 12.1 Weighted-average discount rate: Finance leases 5.0 % Operating leases 6.1 % Supplemental balance sheet information related to leases was as follows: (in millions) June 30, 2019 Operating Leases: Operating lease right-of-use assets $ 148 Accrued liabilities $ 21 Other long-term liabilities 147 Total operating lease liabilities $ 168 Finance Leases: Property and equipment $ 277 Accumulated depreciation (128 ) Property and equipment, net $ 149 Current portion of debt and finance lease obligations $ 20 Long-term portion of debt and finance lease obligations 158 Total finance lease liabilities $ 178 Supplemental cash flow information related to leases was as follows: Six months ended (in millions) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating lease $ 12 Operating cash flows from finance leases 4 Financing cash flows from finance leases 10 Right-of-use assets obtained in exchange for lease obligations: Operating leases 72 Finance leases $ — Future payments under noncancelable operating leases and finance leases with initial terms of one year or more as of June 30, 2019 consisted of the following: (in millions) Finance leases Operating leases Total leases Remainder of 2019 $ 15 14 29 2020 27 29 56 2021 25 20 45 2022 23 18 41 2023 22 16 38 Thereafter 117 155 272 Total lease payments 229 252 481 Less: imputed interest (51 ) (84 ) (135 ) Total lease liabilities $ 178 168 346 On July 2, 2015, QVC entered into a lease (the “Lease”) for a California distribution center. Pursuant to the Lease, the landlord built an approximately one million square foot rental building in Ontario, California (the “Premises”), and thereafter leased the Premises to QVC as its California distribution center for an initial term of 15 years . Under the Lease, QVC was required to pay an initial base rent of approximately $6 million per year, increasing to approximately $8 million per year by the final year of the initial term, as well as all real estate taxes and other building operating costs. QVC also had an option to extend the term of the Lease for up to two consecutive terms of 10 years each. The Company concluded that it was the deemed owner (for accounting purposes only) of the Premises during the construction period under build to suit lease accounting. Upon opening the distribution center, the Company evaluated whether the Lease met the criteria for "sale-leaseback" treatment under U.S. GAAP and concluded that it did not and therefore treated the Lease as a financing obligation and lease payments were attributed to: (1) a reduction of the principal financing obligation; (2) imputed interest expense; and (3) land lease expense representing an imputed cost to lease the underlying land of the Premises. In August 2018, QVC exercised the right to purchase the Premises and related land from the landlord by entering into an amended and restated agreement ("New Lease"). QVC made an initial payment of $10 million and will make annual payments of $12 million over a term of 13 years . The Company classifies the New Lease within finance lease obligations and lease payments are attributed to: (1) a reduction of the principal obligation and (2) imputed interest expense. In connection with the New Lease, QVC capitalized the related land at fair market value while the building asset is currently being depreciated over its estimated useful life of 20 years . On October 5, 2018, QVC entered into a lease (“ECDC Lease”) for an East Coast distribution center. The 1.7 million square foot rental building is located in Bethlehem, Pennsylvania and will be leased to QVC for an initial term of 15 years . QVC obtained access to a portion of the ECDC Lease during March 2019 and recorded a right of use asset of $68 million and an operating lease liability of $69 million . The Company expects the remaining portion of the lease to commence during the third quarter of 2019. Under the ECDC Lease, QVC is required to pay an initial base rent of approximately $10 million per year, with payments expected to begin in the fourth quarter of 2019 and increasing to approximately $14 million per year, as well as all real estate taxes and other building operating costs. QVC also has the option to extend the term of the ECDC Lease for up to two consecutive terms of 5 years each and one final term of 4 years . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and 2018 , the Company recorded a tax provision of $85 million and $78 million , respectively, which represented an effective tax rate of 28.1% and 24.2% , respectively. For the six months ended June 30, 2019 and 2018 , the Company recorded a tax provision of $159 million and $158 million , respectively, which represented an effective tax rate of 28.2% and 25.7% , respectively. The 2019 rate differs from the U.S. federal income tax rate of 21% due primarily to state and foreign tax expenses and valuation allowances established for foreign net operating losses and excess U.S. foreign tax credits. The 2019 effective tax rate has increased from the prior year for both periods presented primarily due to an increase in state accruals and additional valuation allowances on foreign net operating losses and foreign tax credits in the current year. The Company participates in a consolidated federal return filing with Qurate Retail. As of June 30, 2019, the Company's tax years through 2014 are closed for federal income tax purposes, and the IRS has completed its examination of the Company's 2015, 2016, and 2017 tax years. The Company's 2018 and 2019 tax years are being examined currently as part of the Qurate Retail consolidated return under the IRS's Compliance Assurance Process program. The Company, or one of its subsidiaries, files income tax returns in various states and foreign jurisdictions. As of June 30, 2019 , the Company was under examination in the states of Florida, Pennsylvania and Wisconsin and certain of the Company's subsidiaries were under examination in Germany. The Company is a party to a Tax Liability Allocation and Indemnification Agreement (the “Tax Agreement”) with Qurate Retail. The Tax Agreement establishes the methodology for the calculation and payment of income taxes in connection with the consolidation of the Company with Qurate Retail for income tax purposes. Generally, the Tax Agreement provides that the Company will pay Qurate Retail 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 Qurate Retail, with exceptions for the treatment and timing of certain items, including but not limited to deferred intercompany transactions, credits, and net operating and capital losses. To the extent that the separate company tax expense is different from the payment terms of the Tax Agreement, the difference is recorded as either a dividend or capital contribution. The amounts of the tax-related balances due to Qurate Retail as of June 30, 2019 and December 31, 2018 were $33 million and $26 million , respectively, and were included in accrued liabilities in the accompanying condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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 QVC's business activities. Substantially all of QVC's 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, the Company could face a significant disruption in fulfilling QVC's customer orders and shipment of QVC's products. The Company has active disaster recovery programs in place to help mitigate risks associated with these critical business activities. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value disclosures | Financial Instruments and Fair Value Measurements For assets and liabilities required to be reported or disclosed at fair value, U.S. GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company's assets and liabilities measured or disclosed at fair value were as follows: Fair value measurements at June 30, 2019 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 222 222 — — Interest rate swap arrangements (note 6) 1 — 1 — Debt (note 6) 4,980 226 4,754 — Fair value measurements at December 31, 2018 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 267 267 — — Interest rate swap arrangements (note 6) 5 — 5 — Debt (note 6) 4,758 189 4,569 — The 2067 Notes (ticker: QVCD) are considered Level 1 fair value instruments as reported in the foregoing tables as they are traded on the New York Stock Exchange, which the Company considers to be an "active market," as defined by U.S. GAAP. The remainder 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." Accordingly, these financial instruments are reported in the foregoing tables as Level 2 fair value instruments. |
Information about QVC's Operati
Information about QVC's Operating Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment reporting disclosure | Information about QVC's Operating Segments 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, a non-GAAP measure, as net revenue less cost of goods sold, operating expenses, and selling, general and administrative expenses (excluding restructuring, integration and advisory fees incurred by QVC as a result of the acquisition of HSN by Qurate Retail on December 29, 2017 as well as the closure of the France market ("transaction related costs") and stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its segments by identifying those items that are not directly a reflection of each segment's performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among the Company's businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization, stock-based compensation and transaction related costs 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. QVC's chief operating decision maker ("CODM") is QVC's Chief Executive Officer. QVC's CODM has ultimate responsibility for enterprise decisions. QVC's CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise. The segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. QVC's CODM relies on internal management reporting that analyzes enterprise results and segment results to the Adjusted OIBDA level (see below). During the first quarter of 2019, the Company changed its reportable operating segments to combine QVC-U.S. and HSN into one reportable segment called QxH and presented prior period information to conform with this change. As a result of the QRG Initiatives and additional synergies between QVC-U.S. and HSN, the CODM began reviewing the QVC-U.S. and HSN information as one business unit during the first quarter. For the three and six months ended June 30, 2019 , QVC has identified QxH and QVC-International as its two reportable segments. Both 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. Performance measures Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in millions) Net Adjusted Net Adjusted Net Adjusted Net Adjusted QxH $ 1,874 395 1,900 401 3,731 747 3,826 770 QVC-International 640 106 656 100 1,284 207 1,332 207 Consolidated QVC $ 2,514 501 2,556 501 5,015 954 5,158 977 Other information Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in millions) Depreciation Amortization Depreciation Amortization Depreciation Amortization Depreciation Amortization QxH $ 28 67 30 52 56 136 59 105 QVC-International 26 3 13 3 44 6 28 6 Consolidated QVC $ 54 70 43 55 100 142 87 111 June 30, 2019 (in millions) Total Capital Property and equipment, net QxH $ 12,244 140 776 QVC-International 2,155 13 417 Consolidated QVC $ 14,399 153 1,193 The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: Three months ended June 30, Six months ended June 30, (in millions) 2019 2018 2019 2018 Adjusted OIBDA $ 501 501 $ 954 $ 977 Transaction related costs (1 ) (1 ) (1 ) (9 ) Stock-based compensation (11 ) (12 ) (20 ) (24 ) Depreciation and amortization (124 ) (98 ) (242 ) (198 ) Equity in losses of investee (1 ) (2 ) (1 ) (1 ) (Losses) gains on financial instruments (1 ) — (3 ) 1 Interest expense, net (60 ) (68 ) (121 ) (133 ) Foreign currency gain (loss) — 2 (3 ) 1 Income before income taxes $ 303 322 563 614 |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | Other Comprehensive Income The change in the component of accumulated other comprehensive loss, net of taxes ("AOCL"), is summarized as follows: (in millions) Foreign currency translation adjustments AOCL Balance at January 1, 2019 $ (144 ) (144 ) Other comprehensive income attributable to QVC, Inc. stockholder 5 5 Balance at June 30, 2019 (139 ) (139 ) Balance at January 1, 2018 $ (93 ) (93 ) Other comprehensive income attributable to QVC, Inc. stockholder (28 ) (28 ) Balance at June 30, 2018 (121 ) (121 ) The component of other comprehensive income is reflected in QVC's condensed consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive income: (in millions) Before-tax amount Tax expense Net-of-tax amount Three months ended June 30, 2019 Foreign currency translation adjustments $ 14 — 14 Other comprehensive income 14 — 14 Three months ended June 30, 2018 Foreign currency translation adjustments $ (97 ) 1 (96 ) Other comprehensive income (97 ) 1 (96 ) Six months ended June 30, 2019 Foreign currency translation adjustments $ 8 — 8 Other comprehensive income 8 — 8 Six months ended June 30, 2018 Foreign currency translation adjustments $ (26 ) — (26 ) Other comprehensive income (26 ) — (26 ) |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | Subsequent Event Subsequent to June 30, 2019, QVC declared and paid dividends to Qurate Retail in the amount of |
Guarantor_Non-Guarantor Subsidi
Guarantor/Non-Guarantor Subsidiary Financial Information | 6 Months Ended |
Jun. 30, 2019 | |
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 Rocky Mount, Inc.; QVC San Antonio, LLC; QVC Global Holdings I, Inc.; and QVC Global Holdings II, Inc.) and the combined non-guarantor subsidiaries pursuant to Rule 3-10 of Regulation S-X. In connection with the Fourth Amended and Restated Credit Agreement (refer to Note 6) on December 31, 2018, the following subsidiaries became part of the combined subsidiary guarantors: QVC Deutschland GP, Inc.; HSN, Inc.; HSNi, LLC; HSN Holding LLC; AST Sub, Inc.; Home Shopping Network En Espanol, L.P.; Home Shopping Network En Espanol, L.L.C; H.O.T. Networks Holdings (Delaware) LLC; HSN of Nevada LLC; Ingenious Designs LLC; NLG Merger Corp.; Ventana Television, Inc. and Ventana Television Holdings, Inc. The Company has shown all of the subsidiaries of our HSN segment as combined subsidiary guarantors as of December 29, 2017, the date in which HSN became a subsidiary of QVC through a common control transaction with Qurate Retail. These condensed consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the Company's condensed consolidated financial statements. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, such as management fees, royalty revenue and expense, interest income and expense and gains on intercompany asset transfers. Goodwill and other intangible assets have been allocated to the subsidiaries based on management’s estimates. Certain costs have been partially allocated to all of the subsidiaries of the Company. 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 June 30, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Assets Current assets: Cash and cash equivalents $ 11 186 253 — 450 Restricted cash 5 — 3 — 8 Accounts receivable, net 783 181 290 — 1,254 Inventories 752 274 280 — 1,306 Prepaid expenses and other current assets 65 17 53 — 135 Total current assets 1,616 658 879 — 3,153 Property and equipment, net 268 236 689 — 1,193 Operating lease right-of-use assets 3 14 131 — 148 Television distribution rights, net — 198 1 — 199 Goodwill 4,190 922 864 — 5,976 Other intangible assets, net 547 3,087 27 — 3,661 Other noncurrent assets 11 12 46 — 69 Investments in subsidiaries 5,717 943 — (6,660 ) — Total assets $ 12,352 6,070 2,637 (6,660 ) 14,399 Liabilities and equity Current liabilities: Current portion of debt and finance lease obligations $ 3 1 16 — 20 Accounts payable-trade 372 106 224 — 702 Accrued liabilities 150 372 335 — 857 Intercompany accounts payable (receivable) 62 (1,216 ) 1,154 — — Total current liabilities 587 (737 ) 1,729 — 1,579 Long-term portion of debt and finance lease obligations 4,921 6 145 — 5,072 Deferred income taxes 65 684 (59 ) — 690 Other long-term liabilities 152 22 141 — 315 Total liabilities 5,725 (25 ) 1,956 — 7,656 Equity: QVC, Inc. stockholder's equity 6,627 6,095 565 (6,660 ) 6,627 Noncontrolling interest — — 116 — 116 Total equity 6,627 6,095 681 (6,660 ) 6,743 Total liabilities and equity $ 12,352 6,070 2,637 (6,660 ) 14,399 Condensed Consolidating Balance Sheets December 31, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Assets Current assets: Cash and cash equivalents $ 73 192 278 — 543 Restricted cash 5 — 2 — 7 Accounts receivable, net 1,166 307 314 — 1,787 Inventories 725 310 245 — 1,280 Prepaid expenses and other current assets 95 73 48 — 216 Total current assets 2,064 882 887 — 3,833 Property and equipment, net 281 213 671 — 1,165 Television distribution rights, net — 139 1 — 140 Goodwill 4,190 922 860 — 5,972 Other intangible assets, net 529 3,116 21 — 3,666 Other noncurrent assets 8 20 52 — 80 Investments in subsidiaries 5,523 885 — (6,408 ) — Total assets $ 12,595 6,177 2,492 (6,408 ) 14,856 Liabilities and equity Current liabilities: Current portion of debt and capital lease obligations $ 403 1 17 — 421 Accounts payable-trade 494 201 313 — 1,008 Accrued liabilities 358 394 274 — 1,026 Intercompany accounts (receivable) payable (95 ) (1,015 ) 1,110 — — Total current liabilities 1,160 (419 ) 1,714 — 2,455 Long-term portion of debt and capital lease obligations 4,540 6 153 — 4,699 Deferred income taxes 63 695 (58 ) — 700 Other long-term liabilities 122 34 17 — 173 Total liabilities 5,885 316 1,826 — 8,027 Equity: QVC, Inc. stockholder's equity 6,710 5,861 547 (6,408 ) 6,710 Noncontrolling interest — — 119 — 119 Total equity 6,710 5,861 666 (6,408 ) 6,829 Total liabilities and equity $ 12,595 6,177 2,492 (6,408 ) 14,856 Condensed Consolidating Statements of Operations Three months ended June 30, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 1,423 695 693 (297 ) 2,514 Operating costs and expenses Cost of goods sold (exclusive of depreciation and amortization shown separately below) 847 342 422 (33 ) 1,578 Operating 101 98 67 (87 ) 179 Selling, general and administrative, including transaction related costs and stock-based compensation 286 45 114 (177 ) 268 Depreciation 15 9 30 — 54 Amortization 18 48 4 — 70 1,267 542 637 (297 ) 2,149 Operating income 156 153 56 — 365 Other (expense) income: Equity in losses of investee — — (1 ) — (1 ) Losses on financial instruments (1 ) — — — (1 ) Interest (expense) income, net (59 ) — (1 ) — (60 ) Foreign currency gain (loss) 1 — (1 ) — — Intercompany interest income (expense) 8 10 (18 ) — — (51 ) 10 (21 ) — (62 ) Income before income taxes 105 163 35 — 303 Income tax expense (32 ) (32 ) (21 ) — (85 ) Equity in earnings of subsidiaries, net of tax 145 — — (145 ) — Net income 218 131 14 (145 ) 218 Less net income attributable to the noncontrolling interest (12 ) — (12 ) 12 (12 ) Net income attributable to QVC, Inc. stockholder $ 206 131 2 (133 ) 206 Condensed Consolidating Statements of Operations Three months ended June 30, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 1,460 691 704 (299 ) 2,556 Operating costs and expenses Cost of goods sold (exclusive of depreciation and amortization shown separately below) 858 335 433 (37 ) 1,589 Operating 97 123 70 (81 ) 209 Selling, general and administrative, including transaction related costs and stock-based compensation 273 62 116 (181 ) 270 Depreciation 17 9 17 — 43 Amortization 19 34 2 — 55 1,264 563 638 (299 ) 2,166 Operating income 196 128 66 — 390 Other (expense) income: Equity in losses of investee — — (2 ) — (2 ) Interest expense, net (57 ) (9 ) (2 ) — (68 ) Foreign currency gain (loss) 6 — (4 ) — 2 Intercompany interest (expense) income (8 ) 38 (30 ) — — (59 ) 29 (38 ) — (68 ) Income before income taxes 137 157 28 — 322 Income tax expense (38 ) (27 ) (13 ) — (78 ) Equity in earnings of subsidiaries, net of tax 145 9 — (154 ) — Net income 244 139 15 (154 ) 244 Less net income attributable to the noncontrolling interest (11 ) — (11 ) 11 (11 ) Net income attributable to QVC, Inc. stockholder $ 233 139 4 (143 ) 233 Condensed Consolidating Statements of Operations Six months ended June 30, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 2,810 1,408 1,390 (593 ) 5,015 Operating costs and expenses Cost of goods sold (exclusive of depreciation and amortization shown separately below) 1,692 715 851 (70 ) 3,188 Operating 204 192 137 (177 ) 356 Selling, general and administrative, including transaction related costs and stock-based compensation 559 99 226 (346 ) 538 Depreciation 31 18 51 — 100 Amortization 37 98 7 — 142 2,523 1,122 1,272 (593 ) 4,324 Operating income 287 286 118 — 691 Other (expense) income: Equity in losses of investee — — (1 ) — (1 ) Losses on financial instruments (3 ) — — — (3 ) Interest expense, net (120 ) 2 (3 ) — (121 ) Foreign currency (loss) gain (1 ) — (2 ) — (3 ) Intercompany interest (expense) income 16 18 (34 ) — — (108 ) 20 (40 ) — (128 ) Income before income taxes 179 306 78 — 563 Income tax expense (58 ) (57 ) (44 ) — (159 ) Equity in earnings of subsidiaries, net of tax 283 5 — (288 ) — Net income 404 254 34 (288 ) 404 Less net income attributable to the noncontrolling interest (22 ) — (22 ) 22 (22 ) Net income attributable to QVC, Inc. stockholder $ 382 254 12 (266 ) 382 Condensed Consolidating Statements of Operations Six months ended June 30, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 2,915 1,423 1,432 (612 ) 5,158 Operating costs and expenses Cost of goods sold (exclusive of depreciation and amortization shown separately below) 1,736 706 880 (77 ) 3,245 Operating 199 249 144 (170 ) 422 Selling, general and administrative, including transaction related costs and stock-based compensation 552 131 229 (365 ) 547 Depreciation 33 18 36 — 87 Amortization 39 67 5 — 111 2,559 1,171 1,294 (612 ) 4,412 Operating income 356 252 138 — 746 Other (expense) income: Equity in losses of investee — — (1 ) — (1 ) Gains on financial instruments — 1 — — 1 Interest expense, net (114 ) (17 ) (2 ) — (133 ) Foreign currency (loss) gain 2 — (1 ) — 1 Intercompany interest (expense) income (15 ) 76 (61 ) — — (127 ) 60 (65 ) — (132 ) Income before income taxes 229 312 73 — 614 Income tax expense (60 ) (62 ) (36 ) — (158 ) Equity in earnings of subsidiaries, net of tax 287 34 — (321 ) — Net income 456 284 37 (321 ) 456 Less net income attributable to the noncontrolling interest (22 ) — (22 ) 22 (22 ) Net income attributable to QVC, Inc. stockholder $ 434 284 15 (299 ) 434 Condensed Consolidating Statements of Comprehensive Income Three months ended June 30, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 218 131 14 (145 ) 218 Foreign currency translation adjustments, net of tax 14 — 14 (14 ) 14 Total comprehensive income 232 131 28 (159 ) 232 Comprehensive income attributable to noncontrolling interest (15 ) — (15 ) 15 (15 ) Comprehensive income attributable to QVC, Inc. stockholder $ 217 131 13 (144 ) 217 Condensed Consolidating Statements of Comprehensive Income Three months ended June 30, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 244 139 15 (154 ) 244 Foreign currency translation adjustments, net of tax (96 ) — (96 ) 96 (96 ) Total comprehensive income 148 139 (81 ) (58 ) 148 Comprehensive income attributable to noncontrolling interest (6 ) — (6 ) 6 (6 ) Comprehensive income attributable to QVC, Inc. stockholder $ 142 139 (87 ) (52 ) 142 Condensed Consolidating Statements of Comprehensive Income Six months ended June 30, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 404 254 34 (288 ) 404 Foreign currency translation adjustments 8 — 8 (8 ) 8 Total comprehensive income 412 254 42 (296 ) 412 Comprehensive income attributable to noncontrolling interest (25 ) — (25 ) 25 (25 ) Comprehensive income attributable to QVC, Inc. stockholder $ 387 254 17 (271 ) 387 Condensed Consolidating Statements of Comprehensive Income Six months ended June 30, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 456 284 37 (321 ) 456 Foreign currency translation adjustments (26 ) — (26 ) 26 (26 ) Total comprehensive income 430 284 11 (295 ) 430 Comprehensive income attributable to noncontrolling interest (24 ) — (24 ) 24 (24 ) Comprehensive income attributable to QVC, Inc. stockholder $ 406 284 (13 ) (271 ) 406 Condensed Consolidating Statements of Cash Flows Six months ended June 30, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Operating activities: Net cash provided by operating activities $ 293 383 23 — 699 Investing activities: Capital expenditures (61 ) (28 ) (64 ) — (153 ) Expenditures for television distribution rights — (124 ) — — (124 ) Changes in other noncurrent assets (10 ) 8 (11 ) — (13 ) Other investing activities — 29 — — 29 Intercompany investing activities 77 (319 ) — 242 — Net cash provided by (used in) investing activities 6 (434 ) (75 ) 242 (261 ) Financing activities: Principal payments of debt and finance lease obligations (1,420 ) — (5 ) — (1,425 ) Principal borrowings of debt from senior secured credit facility 1,795 — — — 1,795 Principal repayment of senior secured notes (400 ) — — — (400 ) Dividends paid to Qurate Retail, Inc. (469 ) — — — (469 ) Dividends paid to noncontrolling interest — — (28 ) — (28 ) Other financing activities (4 ) — — — (4 ) Net short-term intercompany debt borrowings (repayments) 157 (201 ) 44 — — Other intercompany financing activities (20 ) 246 16 (242 ) — Net cash (used in) provided by financing activities (361 ) 45 27 (242 ) (531 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — — 1 — 1 Net decrease in cash, cash equivalents and restricted cash (62 ) (6 ) (24 ) — (92 ) Cash, cash equivalents and restricted cash, beginning of period 78 192 280 — 550 Cash, cash equivalents and restricted cash, end of period $ 16 186 256 — 458 Condensed Consolidating Statements of Cash Flows Six months ended June 30, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Operating activities: Net cash provided by operating activities $ 345 252 54 — 651 Investing activities: Capital expenditures (39 ) (7 ) (28 ) — (74 ) Expenditures for television distribution rights — (60 ) (1 ) — (61 ) Other investing activities — (8 ) — — (8 ) Changes in other noncurrent assets 1 — (1 ) — — Intercompany investing activities 89 (105 ) — 16 — Net cash provided by (used in) investing activities 51 (180 ) (30 ) 16 (143 ) Financing activities: Principal payments of debt and capital lease obligations (1,442 ) (160 ) (6 ) — (1,608 ) Principal borrowings of debt from senior secured credit facility 1,278 180 — — 1,458 Capital contributions received from Qurate Retail, Inc. 140 — — — 140 Dividends paid to Qurate Retail, Inc. (243 ) — — — (243 ) Dividends paid to noncontrolling interest — — (23 ) — (23 ) Other financing activities (7 ) (7 ) — — (14 ) Net short-term intercompany debt (repayments) borrowings (86 ) 36 50 — — Other intercompany financing activities (14 ) 5 25 (16 ) — Net cash (used in) provided by financing activities (374 ) 54 46 (16 ) (290 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — — 4 — 4 Net increase in cash, cash equivalents and restricted cash 22 126 74 — 222 Cash, cash equivalents and restricted cash, beginning of period 7 55 228 — 290 Cash, cash equivalents and restricted cash, end of period $ 29 181 302 — 512 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted | Accounting pronouncements issued but not adopted In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), which addresses the effect of the change in the U.S. federal corporate tax rate due to the enactment of the December 22, 2017 Tax Cuts and Jobs Act on items within accumulated other comprehensive income (loss). The Company has elected not to adopt this guidance as there would have been no significant effect of the standard on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles- Goodwill and Other- Internal-Use Software (Subtopic 350-40 ), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance will be effective for the Company in the first quarter of 2020 with early adoption permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
New accounting pronouncements policy | Adoption of new accounting pronouncements In February 2016 and subsequently, the Financial Accounting Standards Board ("FASB") issued new guidance which revises the accounting related to lessee accounting as part of Accounting Standards Codification ("ASC") 842. Under the new guidance, lessees are required to recognize a lease liability and a right-of-use asset for most operating leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The Company adopted ASC 842 on January 1, 2019 utilizing the modified retrospective transition approach and did not restate comparative periods. The Company elected the package of practical expedients permitted under the transition guidance, which allows it to carry forward its historical lease classification, its determination regarding whether a contract contains a lease and any initial indirect costs that had existed prior to the adoption of this new standard. The Company also elected to combine both lease and non-lease components and elected for all short leases with a term of less than 12 months to not record a related operating lease right-of-use asset and operating lease liability on the consolidated balance sheet. The Company recognized $92 million of operating lease right-of-use assets, $18 million in short-term operating lease liabilities and $87 million of long-term operating lease liabilities on the consolidated balance sheet upon adoption of the new standard. The operating lease liabilities were determined based on the present value of the remaining minimum rental payments and the operating lease right-of-use asset was determined based on the value of the lease liabilities, adjusted for deferred rent balances of $13 million , which were previously included in accrued liabilities and other long-term liabilities. |
Revenue Revenue (Policies)
Revenue Revenue (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition For the three and six months ended June 30, 2019 and 2018 , respectively, revenue is recognized when obligations with our customer are satisfied; generally this occurs at the time of shipment to our customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration we expect to receive in exchange for transferring goods, net of allowances for returns. The Company generally recognizes revenue related to the PLCC program over time as the PLCC is used by QVC's customers. Sales, value add, use and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company has elected to treat shipping and handling activities that occur after the customer obtains control of the goods as a fulfillment cost and not as a promised good or service. Accordingly, the Company accrues the related shipping costs and recognizes revenue upon delivery of the goods to the shipping carrier. In electing this accounting policy, all shipping and handling activities will be treated as fulfillment costs. The Company generally has payment terms with its customers of one year or less and has elected the practical expedient applicable to such contracts not to consider the time value of money. Significant Judgments Our products are generally sold with a right of return and we may provide other credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. The Company has determined that it is generally the principal in vendor arrangements as the Company can establish control over the goods prior to shipment. Accordingly, the Company records revenue for these arrangements on a gross basis. |
Television Distribution Right_2
Television Distribution Rights, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Television Distribution Rights [Abstract] | |
Schedule of television distribution rights | Television distribution rights consisted of the following: (in millions) June 30, 2019 December 31, 2018 Television distribution rights $ 769 723 Less accumulated amortization (570 ) (583 ) Television distribution rights, net $ 199 140 |
Schedule of future amortization expense | As of June 30, 2019 , related amortization expense for each of the next five years ended December 31 was as follows (in millions): Remainder of 2019 $ 65 2020 117 2021 14 2022 3 2023 — |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2019 were as follows: (in millions) QxH QVC-International Total Balance as of December 31, 2018 $ 5,112 860 5,972 Exchange rate fluctuations — 4 4 Balance as of June 30, 2019 $ 5,112 864 5,976 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Intangible Assets [Abstract] | |
Schedule of acquired intangible assets by class | Other intangible assets consisted of the following: June 30, 2019 December 31, 2018 (in millions) Gross Accumulated Other intangible assets, net Gross Accumulated Other intangible assets, net Purchased and internally developed software $ 937 (666 ) 271 890 (640 ) 250 Affiliate and customer relationships 2,830 (2,474 ) 356 2,831 (2,450 ) 381 Debt origination fees 10 (1 ) 9 10 — 10 Trademarks (indefinite life) 3,025 — 3,025 3,025 — 3,025 $ 6,802 (3,141 ) 3,661 6,756 (3,090 ) 3,666 |
Schedule of finite-lived intangible assets future amortization expense | As of June 30, 2019 , the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions): Remainder of 2019 $ 84 2020 136 2021 112 2022 81 2023 67 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following: (in millions) June 30, 2019 December 31, 2018 Accounts payable non-trade $ 303 314 Allowance for sales returns 158 242 Accrued compensation and benefits 112 146 Sales and other taxes 64 101 Accrued interest 56 58 Income taxes 47 37 Deferred revenue 25 24 Accrued cable distribution fees 19 39 Other 73 65 $ 857 1,026 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Long-term debt and finance lease obligations consisted of the following: (in millions) June 30, 2019 December 31, 2018 3.125% Senior Secured Notes due 2019, net of original issue discount $ — 399 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 6.375% Senior Secured Notes due 2067 225 225 Senior secured credit facility 1,565 1,185 Finance lease obligations 178 188 Less debt issuance costs, net (24 ) (25 ) Total debt and finance lease obligations 5,092 5,120 Less current portion (20 ) (421 ) Long-term portion of debt and finance lease obligations $ 5,072 4,699 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregated revenue by segment and product category consisted of the following: Three months ended June 30, 2019 Six months ended June 30, 2019 (in millions) QxH QVC-International Total QxH QVC-International Total Home $ 655 231 886 1,334 478 1,812 Apparel 344 108 452 670 220 890 Beauty 317 158 475 609 301 910 Accessories 247 65 312 467 127 594 Electronics 173 22 195 354 47 401 Jewelry 93 50 143 205 102 307 Other revenue 45 6 51 92 9 101 Total net revenue $ 1,874 640 2,514 3,731 1,284 5,015 Three months ended June 30, 2018 Six months ended June 30, 2018 (in millions) QxH QVC-International Total QxH QVC-International Total Home $ 651 235 886 1,377 495 1,872 Apparel 378 116 494 703 235 938 Beauty 316 158 474 622 302 924 Accessories 230 72 302 448 139 587 Electronics 164 22 186 338 48 386 Jewelry 113 48 161 245 103 348 Other revenue 48 5 53 93 10 103 Total net revenue $ 1,900 656 2,556 3,826 1,332 5,158 |
Lease and Transponder Service_2
Lease and Transponder Service Agreements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease cost for the three and six months ended June 30, 2019 , were as follows: Three months ended Six months ended (in millions) June 30, 2019 June 30, 2019 Finance lease cost Depreciation of leased assets $ 5 10 Interest on lease liabilities 2 4 Total finance lease cost 7 14 Operating lease cost 8 14 Total lease cost $ 15 28 |
Weighted average lease term and discount rate [Table Text Block] | The remaining weighted-average lease term and the weighted-average discount rate were as follows: June 30, 2019 Weighted-average remaining lease term (years): Finance leases 9.3 Operating leases 12.1 Weighted-average discount rate: Finance leases 5.0 % Operating leases 6.1 % |
Leases, Supplemental Balance Sheet Information [Table Text Block] | Supplemental balance sheet information related to leases was as follows: (in millions) June 30, 2019 Operating Leases: Operating lease right-of-use assets $ 148 Accrued liabilities $ 21 Other long-term liabilities 147 Total operating lease liabilities $ 168 Finance Leases: Property and equipment $ 277 Accumulated depreciation (128 ) Property and equipment, net $ 149 Current portion of debt and finance lease obligations $ 20 Long-term portion of debt and finance lease obligations 158 Total finance lease liabilities $ 178 |
Leases, Supplemental Cash Flow Information [Table Text Block] | Supplemental cash flow information related to leases was as follows: Six months ended (in millions) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating lease $ 12 Operating cash flows from finance leases 4 Financing cash flows from finance leases 10 Right-of-use assets obtained in exchange for lease obligations: Operating leases 72 Finance leases $ — |
Future minimum lease payments [Table Text Block] | Future payments under noncancelable operating leases and finance leases with initial terms of one year or more as of June 30, 2019 consisted of the following: (in millions) Finance leases Operating leases Total leases Remainder of 2019 $ 15 14 29 2020 27 29 56 2021 25 20 45 2022 23 18 41 2023 22 16 38 Thereafter 117 155 272 Total lease payments 229 252 481 Less: imputed interest (51 ) (84 ) (135 ) Total lease liabilities $ 178 168 346 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | The Company's assets and liabilities measured or disclosed at fair value were as follows: Fair value measurements at June 30, 2019 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 222 222 — — Interest rate swap arrangements (note 6) 1 — 1 — Debt (note 6) 4,980 226 4,754 — Fair value measurements at December 31, 2018 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 267 267 — — Interest rate swap arrangements (note 6) 5 — 5 — Debt (note 6) 4,758 189 4,569 — |
Information about QVC's Opera_2
Information about QVC's Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Adjusted OIBDA by Segment | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in millions) Net Adjusted Net Adjusted Net Adjusted Net Adjusted QxH $ 1,874 395 1,900 401 3,731 747 3,826 770 QVC-International 640 106 656 100 1,284 207 1,332 207 Consolidated QVC $ 2,514 501 2,556 501 5,015 954 5,158 977 |
Schedule of Depreciation and Amortization by Segment | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in millions) Depreciation Amortization Depreciation Amortization Depreciation Amortization Depreciation Amortization QxH $ 28 67 30 52 56 136 59 105 QVC-International 26 3 13 3 44 6 28 6 Consolidated QVC $ 54 70 43 55 100 142 87 111 |
Schedule of Capital Expenditures and Total Assets by Segment | June 30, 2019 (in millions) Total Capital Property and equipment, net QxH $ 12,244 140 776 QVC-International 2,155 13 417 Consolidated QVC $ 14,399 153 1,193 |
Reconciliation of Adjusted OIBDA to Income before Income Taxes | The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: Three months ended June 30, Six months ended June 30, (in millions) 2019 2018 2019 2018 Adjusted OIBDA $ 501 501 $ 954 $ 977 Transaction related costs (1 ) (1 ) (1 ) (9 ) Stock-based compensation (11 ) (12 ) (20 ) (24 ) Depreciation and amortization (124 ) (98 ) (242 ) (198 ) Equity in losses of investee (1 ) (2 ) (1 ) (1 ) (Losses) gains on financial instruments (1 ) — (3 ) 1 Interest expense, net (60 ) (68 ) (121 ) (133 ) Foreign currency gain (loss) — 2 (3 ) 1 Income before income taxes $ 303 322 563 614 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The change in the component of accumulated other comprehensive loss, net of taxes ("AOCL"), is summarized as follows: (in millions) Foreign currency translation adjustments AOCL Balance at January 1, 2019 $ (144 ) (144 ) Other comprehensive income attributable to QVC, Inc. stockholder 5 5 Balance at June 30, 2019 (139 ) (139 ) Balance at January 1, 2018 $ (93 ) (93 ) Other comprehensive income attributable to QVC, Inc. stockholder (28 ) (28 ) Balance at June 30, 2018 (121 ) (121 ) |
Schedule of Component of Comprehensive Income (Loss) | The component of other comprehensive income is reflected in QVC's condensed consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive income: (in millions) Before-tax amount Tax expense Net-of-tax amount Three months ended June 30, 2019 Foreign currency translation adjustments $ 14 — 14 Other comprehensive income 14 — 14 Three months ended June 30, 2018 Foreign currency translation adjustments $ (97 ) 1 (96 ) Other comprehensive income (97 ) 1 (96 ) Six months ended June 30, 2019 Foreign currency translation adjustments $ 8 — 8 Other comprehensive income 8 — 8 Six months ended June 30, 2018 Foreign currency translation adjustments $ (26 ) — (26 ) Other comprehensive income (26 ) — (26 ) |
Guarantor_Non-Guarantor Subsi_2
Guarantor/Non-Guarantor Subsidiary Financial Information (Tables) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | ||
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Period | Condensed Consolidating Balance Sheets June 30, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Assets Current assets: Cash and cash equivalents $ 11 186 253 — 450 Restricted cash 5 — 3 — 8 Accounts receivable, net 783 181 290 — 1,254 Inventories 752 274 280 — 1,306 Prepaid expenses and other current assets 65 17 53 — 135 Total current assets 1,616 658 879 — 3,153 Property and equipment, net 268 236 689 — 1,193 Operating lease right-of-use assets 3 14 131 — 148 Television distribution rights, net — 198 1 — 199 Goodwill 4,190 922 864 — 5,976 Other intangible assets, net 547 3,087 27 — 3,661 Other noncurrent assets 11 12 46 — 69 Investments in subsidiaries 5,717 943 — (6,660 ) — Total assets $ 12,352 6,070 2,637 (6,660 ) 14,399 Liabilities and equity Current liabilities: Current portion of debt and finance lease obligations $ 3 1 16 — 20 Accounts payable-trade 372 106 224 — 702 Accrued liabilities 150 372 335 — 857 Intercompany accounts payable (receivable) 62 (1,216 ) 1,154 — — Total current liabilities 587 (737 ) 1,729 — 1,579 Long-term portion of debt and finance lease obligations 4,921 6 145 — 5,072 Deferred income taxes 65 684 (59 ) — 690 Other long-term liabilities 152 22 141 — 315 Total liabilities 5,725 (25 ) 1,956 — 7,656 Equity: QVC, Inc. stockholder's equity 6,627 6,095 565 (6,660 ) 6,627 Noncontrolling interest — — 116 — 116 Total equity 6,627 6,095 681 (6,660 ) 6,743 Total liabilities and equity $ 12,352 6,070 2,637 (6,660 ) 14,399 | |
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Period | Condensed Consolidating Balance Sheets December 31, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Assets Current assets: Cash and cash equivalents $ 73 192 278 — 543 Restricted cash 5 — 2 — 7 Accounts receivable, net 1,166 307 314 — 1,787 Inventories 725 310 245 — 1,280 Prepaid expenses and other current assets 95 73 48 — 216 Total current assets 2,064 882 887 — 3,833 Property and equipment, net 281 213 671 — 1,165 Television distribution rights, net — 139 1 — 140 Goodwill 4,190 922 860 — 5,972 Other intangible assets, net 529 3,116 21 — 3,666 Other noncurrent assets 8 20 52 — 80 Investments in subsidiaries 5,523 885 — (6,408 ) — Total assets $ 12,595 6,177 2,492 (6,408 ) 14,856 Liabilities and equity Current liabilities: Current portion of debt and capital lease obligations $ 403 1 17 — 421 Accounts payable-trade 494 201 313 — 1,008 Accrued liabilities 358 394 274 — 1,026 Intercompany accounts (receivable) payable (95 ) (1,015 ) 1,110 — — Total current liabilities 1,160 (419 ) 1,714 — 2,455 Long-term portion of debt and capital lease obligations 4,540 6 153 — 4,699 Deferred income taxes 63 695 (58 ) — 700 Other long-term liabilities 122 34 17 — 173 Total liabilities 5,885 316 1,826 — 8,027 Equity: QVC, Inc. stockholder's equity 6,710 5,861 547 (6,408 ) 6,710 Noncontrolling interest — — 119 — 119 Total equity 6,710 5,861 666 (6,408 ) 6,829 Total liabilities and equity $ 12,595 6,177 2,492 (6,408 ) 14,856 | |
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Period | Condensed Consolidating Statements of Operations Three months ended June 30, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 1,423 695 693 (297 ) 2,514 Operating costs and expenses Cost of goods sold (exclusive of depreciation and amortization shown separately below) 847 342 422 (33 ) 1,578 Operating 101 98 67 (87 ) 179 Selling, general and administrative, including transaction related costs and stock-based compensation 286 45 114 (177 ) 268 Depreciation 15 9 30 — 54 Amortization 18 48 4 — 70 1,267 542 637 (297 ) 2,149 Operating income 156 153 56 — 365 Other (expense) income: Equity in losses of investee — — (1 ) — (1 ) Losses on financial instruments (1 ) — — — (1 ) Interest (expense) income, net (59 ) — (1 ) — (60 ) Foreign currency gain (loss) 1 — (1 ) — — Intercompany interest income (expense) 8 10 (18 ) — — (51 ) 10 (21 ) — (62 ) Income before income taxes 105 163 35 — 303 Income tax expense (32 ) (32 ) (21 ) — (85 ) Equity in earnings of subsidiaries, net of tax 145 — — (145 ) — Net income 218 131 14 (145 ) 218 Less net income attributable to the noncontrolling interest (12 ) — (12 ) 12 (12 ) Net income attributable to QVC, Inc. stockholder $ 206 131 2 (133 ) 206 | |
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Period | Condensed Consolidating Statements of Operations Three months ended June 30, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 1,460 691 704 (299 ) 2,556 Operating costs and expenses Cost of goods sold (exclusive of depreciation and amortization shown separately below) 858 335 433 (37 ) 1,589 Operating 97 123 70 (81 ) 209 Selling, general and administrative, including transaction related costs and stock-based compensation 273 62 116 (181 ) 270 Depreciation 17 9 17 — 43 Amortization 19 34 2 — 55 1,264 563 638 (299 ) 2,166 Operating income 196 128 66 — 390 Other (expense) income: Equity in losses of investee — — (2 ) — (2 ) Interest expense, net (57 ) (9 ) (2 ) — (68 ) Foreign currency gain (loss) 6 — (4 ) — 2 Intercompany interest (expense) income (8 ) 38 (30 ) — — (59 ) 29 (38 ) — (68 ) Income before income taxes 137 157 28 — 322 Income tax expense (38 ) (27 ) (13 ) — (78 ) Equity in earnings of subsidiaries, net of tax 145 9 — (154 ) — Net income 244 139 15 (154 ) 244 Less net income attributable to the noncontrolling interest (11 ) — (11 ) 11 (11 ) Net income attributable to QVC, Inc. stockholder $ 233 139 4 (143 ) 233 | |
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Period | Condensed Consolidating Statements of Comprehensive Income Three months ended June 30, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 218 131 14 (145 ) 218 Foreign currency translation adjustments, net of tax 14 — 14 (14 ) 14 Total comprehensive income 232 131 28 (159 ) 232 Comprehensive income attributable to noncontrolling interest (15 ) — (15 ) 15 (15 ) Comprehensive income attributable to QVC, Inc. stockholder $ 217 131 13 (144 ) 217 | |
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Period | Condensed Consolidating Statements of Comprehensive Income Three months ended June 30, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 244 139 15 (154 ) 244 Foreign currency translation adjustments, net of tax (96 ) — (96 ) 96 (96 ) Total comprehensive income 148 139 (81 ) (58 ) 148 Comprehensive income attributable to noncontrolling interest (6 ) — (6 ) 6 (6 ) Comprehensive income attributable to QVC, Inc. stockholder $ 142 139 (87 ) (52 ) 142 | |
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Period | Condensed Consolidating Statements of Cash Flows Six months ended June 30, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Operating activities: Net cash provided by operating activities $ 293 383 23 — 699 Investing activities: Capital expenditures (61 ) (28 ) (64 ) — (153 ) Expenditures for television distribution rights — (124 ) — — (124 ) Changes in other noncurrent assets (10 ) 8 (11 ) — (13 ) Other investing activities — 29 — — 29 Intercompany investing activities 77 (319 ) — 242 — Net cash provided by (used in) investing activities 6 (434 ) (75 ) 242 (261 ) Financing activities: Principal payments of debt and finance lease obligations (1,420 ) — (5 ) — (1,425 ) Principal borrowings of debt from senior secured credit facility 1,795 — — — 1,795 Principal repayment of senior secured notes (400 ) — — — (400 ) Dividends paid to Qurate Retail, Inc. (469 ) — — — (469 ) Dividends paid to noncontrolling interest — — (28 ) — (28 ) Other financing activities (4 ) — — — (4 ) Net short-term intercompany debt borrowings (repayments) 157 (201 ) 44 — — Other intercompany financing activities (20 ) 246 16 (242 ) — Net cash (used in) provided by financing activities (361 ) 45 27 (242 ) (531 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — — 1 — 1 Net decrease in cash, cash equivalents and restricted cash (62 ) (6 ) (24 ) — (92 ) Cash, cash equivalents and restricted cash, beginning of period 78 192 280 — 550 Cash, cash equivalents and restricted cash, end of period $ 16 186 256 — 458 | |
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Period | Condensed Consolidating Statements of Cash Flows Six months ended June 30, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Operating activities: Net cash provided by operating activities $ 345 252 54 — 651 Investing activities: Capital expenditures (39 ) (7 ) (28 ) — (74 ) Expenditures for television distribution rights — (60 ) (1 ) — (61 ) Other investing activities — (8 ) — — (8 ) Changes in other noncurrent assets 1 — (1 ) — — Intercompany investing activities 89 (105 ) — 16 — Net cash provided by (used in) investing activities 51 (180 ) (30 ) 16 (143 ) Financing activities: Principal payments of debt and capital lease obligations (1,442 ) (160 ) (6 ) — (1,608 ) Principal borrowings of debt from senior secured credit facility 1,278 180 — — 1,458 Capital contributions received from Qurate Retail, Inc. 140 — — — 140 Dividends paid to Qurate Retail, Inc. (243 ) — — — (243 ) Dividends paid to noncontrolling interest — — (23 ) — (23 ) Other financing activities (7 ) (7 ) — — (14 ) Net short-term intercompany debt (repayments) borrowings (86 ) 36 50 — — Other intercompany financing activities (14 ) 5 25 (16 ) — Net cash (used in) provided by financing activities (374 ) 54 46 (16 ) (290 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — — 4 — 4 Net increase in cash, cash equivalents and restricted cash 22 126 74 — 222 Cash, cash equivalents and restricted cash, beginning of period 7 55 228 — 290 Cash, cash equivalents and restricted cash, end of period $ 29 181 302 — 512 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 29, 2017 | Jun. 23, 2016 | |
General business information | ||||||
Operating Lease, Liability, Noncurrent | $ 147 | $ 87 | ||||
Operating Lease, Right-of-Use Asset | 148 | 92 | $ 0 | |||
Operating Lease, Liability, Current | 21 | 18 | ||||
Dividends paid to noncontrolling interest | $ 28 | $ 23 | ||||
Line of credit facility, maximum borrowing capacity | $ 3,650 | $ 2,650 | ||||
Deferred Rent Credit | $ 13 | |||||
QVC-Japan | ||||||
General business information | ||||||
Investment Owned, Percent of Net Assets | 60.00% | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 40.00% | |||||
CNR Home Shopping Co., Ltd. | ||||||
General business information | ||||||
Equity Method Investment, Ownership Percentage | 49.00% | |||||
HSN, Inc. [Member] | ||||||
General business information | ||||||
Remaining ownership interest acquired by parent | 62.00% | |||||
Ownership Percentage by Parent | 100.00% | |||||
Senior secured credit facility | QVC | ||||||
General business information | ||||||
Line of credit facility, maximum borrowing capacity | $ 3,250 | |||||
Senior secured credit facility | Tranche One, Shared with Related Party | ||||||
General business information | ||||||
Line of credit facility, maximum borrowing capacity | $ 400 | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 168 | |||||
Cornerstone Brands Inc [Member] | ||||||
General business information | ||||||
Repayments of Related Party Debt | 29 | |||||
QVC to Zulily allocated expenses [Member] | zulily, llc [Member] | ||||||
General business information | ||||||
Related Party Transaction, Amounts of Transaction | 4 | 2 | ||||
Zulily to QVC allocated expenses [Member] | zulily, llc [Member] | ||||||
General business information | ||||||
Related Party Transaction, Amounts of Transaction | 4 | 3 | ||||
QVC to CBI Allocated Expenses [Member] | Cornerstone Brands Inc [Member] | ||||||
General business information | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | 11 | 26 | ||||
CBI to QVC allocated expenses [Member] | Cornerstone Brands Inc [Member] | ||||||
General business information | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1 | $ 12 |
Basis of Presentation New Accou
Basis of Presentation New Accounting Standards Cumulative Effect of changes due to Adoption of ASC 606 and ASU 2016-16 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Inventories | $ 1,306 | $ 1,306 | $ 1,280 | ||
Prepaid expenses and other current assets | 135 | 135 | 216 | ||
Accrued liabilities | 857 | 857 | 1,026 | ||
Allowance for sales returns | 158 | 158 | 242 | ||
Deferred income taxes | 690 | 690 | 700 | ||
Accumulated deficit | (2,373) | (2,373) | $ (2,269) | ||
Net revenue | 2,514 | $ 2,556 | 5,015 | $ 5,158 | |
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 1,578 | 1,589 | 3,188 | 3,245 | |
Operating | 179 | 209 | 356 | 422 | |
Selling, general and administrative, including transaction related costs and stock-based compensation | 268 | 270 | 538 | 547 | |
Income tax expense | (85) | (78) | (159) | (158) | |
Net income | $ 218 | $ 244 | $ 404 | $ 456 |
Television Distribution Right_3
Television Distribution Rights, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Television distribution rights, net | $ 199 | $ 199 | $ 140 | ||
Television distribution rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Television distribution rights | 769 | 769 | 723 | ||
Less accumulated amortization | (570) | (570) | (583) | ||
Television distribution rights, net | 199 | 199 | $ 140 | ||
Amortization | $ 32 | $ 16 | $ 66 | $ 32 |
Television Distribution Right_4
Television Distribution Rights, Net (Future Amortization Expense) (Details) - Television distribution rights $ in Millions | Jun. 30, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2019 | $ 65 |
2020 | 117 |
2021 | 14 |
2022 | 3 |
2023 | $ 0 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Balance as of December 31, 2018 | $ 5,972 |
Exchange rate fluctuations | 4 |
Balance as of June 30, 2019 | 5,976 |
QxH [Member] | |
Goodwill [Line Items] | |
Balance as of December 31, 2018 | 5,112 |
Exchange rate fluctuations | 0 |
Balance as of June 30, 2019 | 5,112 |
QVC-International | |
Goodwill [Line Items] | |
Balance as of December 31, 2018 | 860 |
Exchange rate fluctuations | 4 |
Balance as of June 30, 2019 | $ 864 |
Other Intangible Assets, Net (O
Other Intangible Assets, Net (Other Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Gross cost | |||||
Purchased and internally developed software | $ 937 | $ 937 | $ 890 | ||
Affiliate and customer relationships | 2,830 | 2,830 | 2,831 | ||
Debt origination fees | 10 | 10 | 10 | ||
Trademarks (indefinite life) | 3,025 | 3,025 | 3,025 | ||
Other intangible assets (excluding goodwill), gross | 6,802 | 6,802 | 6,756 | ||
Accumulated amortization | |||||
Purchased and internally developed software | (666) | (666) | (640) | ||
Affiliate and customer relationships | (2,474) | (2,474) | (2,450) | ||
Debt origination fees | (1) | (1) | 0 | ||
Other intangible assets (excluding goodwill), accumulated amortization | (3,141) | (3,141) | (3,090) | ||
Other intangible assets, net | |||||
Purchased and internally developed software | 271 | 271 | 250 | ||
Affiliate and customer relationships | 356 | 356 | 381 | ||
Debt origination fees | 9 | 9 | 10 | ||
Other intangible assets (excluding goodwill), net | 3,661 | 3,661 | $ 3,666 | ||
Amortization of other intangible assets | $ 38 | $ 39 | $ 76 | $ 79 |
Other Intangible Assets, Net (F
Other Intangible Assets, Net (Future Amortization Expense) (Details) - Other Intangible Assets $ in Millions | Jun. 30, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2019 | $ 84 |
2020 | 136 |
2021 | 112 |
2022 | 81 |
2023 | $ 67 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accrued Liabilities [Abstract] | ||
Accounts payable non-trade | $ 303 | $ 314 |
Income taxes | 47 | 37 |
Accrued Cable Distribution Fees | 19 | 39 |
Deferred revenue | 25 | 24 |
Allowance for sales returns | 158 | 242 |
Employee-related Liabilities | 112 | 146 |
Sales and other taxes | 64 | 101 |
Accrued interest | 56 | 58 |
Other | 73 | 65 |
Accrued liabilities | $ 857 | $ 1,026 |
Long-Term Debt (Debt) (Details)
Long-Term Debt (Debt) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Jul. 01, 2019 | Sep. 13, 2018 | Jun. 15, 2016 | Mar. 18, 2014 | |
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 125 | $ 125 | ||||
Debt Issuance Costs | $ (24) | $ (25) | ||||
Total debt and finance lease obligations | 5,092 | 5,120 | ||||
Less current portion | (20) | (421) | ||||
Long-term portion of debt and finance lease obligations | 5,072 | 4,699 | ||||
3.125% Senior Secured Notes due 2019, net of original issue discount | ||||||
Debt Instrument [Line Items] | ||||||
Debt and Capital Lease Obligations | $ 0 | 399 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | ||||
5.125% Senior Secured Notes due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt and Capital Lease Obligations | $ 500 | 500 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | |||||
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 | 4.375% | |||||
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% | |||||
6.375% Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt and Capital Lease Obligations | $ 225 | 225 | $ 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | |||||
Senior secured credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt and Capital Lease Obligations | 1,565 | 1,185 | ||||
Finance lease obligations | ||||||
Debt Instrument [Line Items] | ||||||
Debt and Capital Lease Obligations | $ 178 | $ 188 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |||||||
Jun. 30, 2019 | Jul. 01, 2019 | Dec. 31, 2018 | Sep. 13, 2018 | Dec. 31, 2017 | Jun. 23, 2016 | Jun. 15, 2016 | Mar. 18, 2014 | |
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,895 | |||||||
Line of Credit Facility, Interest Rate at Period End | 3.90% | |||||||
Line of credit facility, maximum borrowing capacity | $ 3,650 | $ 2,650 | ||||||
Derivative, Notional Amount | $ 125 | $ 125 | ||||||
Line of Credit Facility, Standby Letter of Credit | 450 | |||||||
Line of credit facility, uncommitted loan | 1,500 | |||||||
Debt Instrument, Lower Range of Basis Spread on Variable Rate | 0.25% | |||||||
Debt Instrument, Higher Range of Basis Spread on Variable Rate | 0.75% | |||||||
Debt, Weighted Average Interest Rate | 4.60% | |||||||
Tranche One, Shared with Related Party | Senior secured credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 400 | |||||||
Tranche One, Shared with Related Party | Standby Letters of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Standby Letter of Credit | 50 | |||||||
QVC | Senior secured credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 3,250 | |||||||
London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Lower Range of Basis Spread on Variable Rate | 1.25% | |||||||
Debt Instrument, Higher Range of Basis Spread on Variable Rate | 1.75% | |||||||
3.125% Senior Secured Notes due 2019, net of original issue discount | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | ||||||
Debt and Capital Lease Obligations | $ 0 | 399 | ||||||
6.375% Senior Secured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | |||||||
Debt Instrument, Call Feature | P5Y | |||||||
Debt and Capital Lease Obligations | $ 225 | $ 225 | $ 0 | |||||
HSN, Inc. [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative, Notional Amount | $ 250 | |||||||
Derivative, Fixed Interest Rate | 1.05% | |||||||
250 million interest rate swap [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative Asset, Current | $ 1 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,514 | $ 2,556 | $ 5,015 | $ 5,158 |
Home | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 886 | 886 | 1,812 | 1,872 |
Apparel | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 452 | 494 | 890 | 938 |
Beauty | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 475 | 474 | 910 | 924 |
Accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 312 | 302 | 594 | 587 |
Jewelry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 143 | 161 | 307 | 348 |
Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 195 | 186 | 401 | 386 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 51 | 53 | 101 | 103 |
QxH [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,874 | 1,900 | 3,731 | 3,826 |
QxH [Member] | Home | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 655 | 651 | 1,334 | 1,377 |
QxH [Member] | Apparel | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 344 | 378 | 670 | 703 |
QxH [Member] | Beauty | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 317 | 316 | 609 | 622 |
QxH [Member] | Accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 247 | 230 | 467 | 448 |
QxH [Member] | Jewelry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 93 | 113 | 205 | 245 |
QxH [Member] | Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 173 | 164 | 354 | 338 |
QxH [Member] | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 45 | 48 | 92 | 93 |
QVC-International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 640 | 656 | 1,284 | 1,332 |
QVC-International | Home | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 231 | 235 | 478 | 495 |
QVC-International | Apparel | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 108 | 116 | 220 | 235 |
QVC-International | Beauty | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 158 | 158 | 301 | 302 |
QVC-International | Accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 65 | 72 | 127 | 139 |
QVC-International | Jewelry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 50 | 48 | 102 | 103 |
QVC-International | Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22 | 22 | 47 | 48 |
QVC-International | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 6 | $ 5 | $ 9 | $ 10 |
Lease and Transponder Service_3
Lease and Transponder Service Agreements (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | |||||||
Lease Liability, Total | $ 346 | $ 346 | |||||
Lessee, Operating Lease, Term of Contract | 12 months | 12 months | |||||
Operating Lease, Liability | $ 168 | $ 168 | |||||
Area of lease (in sqft) | ft² | 1,000,000 | 1,000,000 | |||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 72 | ||||||
Initial term of lease | 15 years | ||||||
Lease, Cost [Abstract] | |||||||
Finance Lease, Right-of-Use Asset, Amortization | $ 5 | $ 10 | |||||
Finance Lease, Interest Expense | 2 | 4 | |||||
Finance Lease, Total Cost | 7 | 14 | |||||
Operating leases expense net | 8 | $ 9 | $ 9 | 14 | $ 18 | ||
Total Lease Cost | $ 15 | $ 28 | |||||
Weighted average lease term and discount rate [Abstract] | |||||||
Finance Lease, Weighted Average Remaining Lease Term | 9 years 4 months | 9 years 4 months | |||||
Operating Lease, Weighted Average Remaining Lease Term | 12 years 21 days | 12 years 21 days | |||||
Finance Lease, Weighted Average Discount Rate, Percent | 5.00% | 5.00% | |||||
Operating Lease, Weighted Average Discount Rate, Percent | 6.10% | 6.10% | |||||
Supplemental balance sheet information [Abstract] | |||||||
Operating Lease, Right-of-Use Asset | $ 148 | $ 148 | $ 92 | $ 0 | |||
Operating Lease, Liability, Current | 21 | 21 | 18 | ||||
Operating Lease, Liability, Noncurrent | 147 | 147 | $ 87 | ||||
Finance Lease, Right of Use Asset, Gross | 277 | 277 | |||||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | (128) | (128) | |||||
Finance Lease, Right-of-Use Asset | 149 | 149 | |||||
Finance Lease, Liability, Current | 20 | 20 | |||||
Finance Lease, Liability, Noncurrent | 158 | 158 | |||||
Finance Lease, Liability | 178 | 178 | |||||
Supplemental Cash Flow Information [Abstract] | |||||||
Operating Lease, Payments | 12 | ||||||
Finance Lease, Interest Payment on Liability | 4 | ||||||
Finance Lease, Principal Payments | 10 | ||||||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 0 | ||||||
Finance Lease Liabilities, Payments, Due [Abstract] | |||||||
Remainder of 2019 | 15 | 15 | |||||
2020 | 27 | 27 | |||||
2021 | 25 | 25 | |||||
2022 | 23 | 23 | |||||
2023 | 22 | 22 | |||||
Thereafter | 117 | 117 | |||||
Finance Lease, Liability, Payments, Due | 229 | 229 | |||||
Imputed interest on finance lease | (51) | (51) | |||||
Operating leases | |||||||
Remainder of 2019 | 14 | 14 | |||||
2020 | 29 | 29 | |||||
2021 | 20 | 20 | |||||
2022 | 18 | 18 | |||||
2023 | 16 | 16 | |||||
Thereafter | 155 | 155 | |||||
Operating Lease, Total Payments Due | 252 | 252 | |||||
Imputed interest of operating leases | (84) | (84) | |||||
Total Future payments, Leases [Abstract] | |||||||
Remainder of 2019 | 29 | 29 | |||||
2020 | 56 | 56 | |||||
2021 | 45 | 45 | |||||
2022 | 41 | 41 | |||||
2023 | 38 | 38 | |||||
Thereafter | 272 | 272 | |||||
Total Lease Payments Due | 481 | 481 | |||||
Imputed interest on lease liabilities | $ (135) | (135) | |||||
Capital Leases, Income Statement, Depreciation Expense | $ 4 | $ 8 | |||||
Minimum base rent | 6 | ||||||
Maximum base rent | $ 8 | ||||||
Number of extension options | 2 | ||||||
Lessee Leasing Arrangements, Build to Suit Lease, Renewal Term | 10 years | ||||||
Amended arrangement initial payment | $ 10 | ||||||
Lessee Leasing Arrangements, Build to Suit, Amended Arrangement, Installment Payment | $ 12 | ||||||
Lessee Leasing Arrangements, Build to Suit, Amended Arrangement, Payment Term | 13 years | ||||||
Build to suit lease, useful life | 20 years | ||||||
ECDC [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, Operating Lease, Renewal Term | 5 years | 5 years | |||||
Lessee Leasing Arrangements, Operating Lease, Number of Four Year Extension Options | 1 | ||||||
Lessee, Operating Lease, Final Renewal Term | 4 years | ||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 10 | ||||||
Operating Leases, Rent Expense, Minimum Rentals, Final Year | $ 14 | ||||||
Lessee Leasing Arrangements, Operating Lease, Number of Five Year Extension Options | 2 | ||||||
Operating Lease, Liability | $ 69 | $ 69 | |||||
Area of lease (in sqft) | ft² | 1,700,000 | 1,700,000 | |||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 68 | ||||||
Initial term of lease | 15 years | ||||||
Minimum [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | |||||
Maximum [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, Operating Lease, Term of Contract | 15 years | 15 years |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||||
Income tax expense | $ (85) | $ (78) | $ (159) | $ (158) | |
Effective income tax rate reconciliation, percent | 28.10% | 24.20% | 28.20% | 25.70% | |
UNITED STATES | |||||
Income Tax Contingency [Line Items] | |||||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | ||||
Liberty | Tax Agreement | |||||
Income Tax Contingency [Line Items] | |||||
Current tax payments due to related parties | $ 33 | $ 33 | $ 26 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Millions | Jul. 01, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 15, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative, Notional Amount | $ 125 | $ 125 | ||
Recurring | ||||
Current Assets, Fair Value Disclosure | ||||
Cash equivalents | $ 222 | $ 267 | ||
Derivative Asset, Current | 1 | 5 | ||
Long-term liabilities | ||||
Long-term Debt, Fair Value | 4,980 | 4,758 | ||
Recurring | Level 1 | ||||
Current Assets, Fair Value Disclosure | ||||
Cash equivalents | 222 | 267 | ||
Long-term liabilities | ||||
Long-term Debt, Fair Value | 226 | 189 | ||
Recurring | Level 2 | ||||
Current Assets, Fair Value Disclosure | ||||
Derivative Asset, Current | 1 | 5 | ||
Long-term liabilities | ||||
Long-term Debt, Fair Value | $ 4,754 | $ 4,569 |
Information about QVC's Opera_3
Information about QVC's Operating Segments (Revenue and Adjusted OIBDA by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Adjusted OIBDA Excluding Transaction Related Costs | $ 501 | $ 501 | $ 954 | $ 977 |
Revenues | 2,514 | 2,556 | 5,015 | 5,158 |
QxH [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted OIBDA Excluding Transaction Related Costs | 395 | 401 | 747 | 770 |
Revenues | 1,874 | 1,900 | 3,731 | 3,826 |
QVC-International | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted OIBDA Excluding Transaction Related Costs | 106 | 100 | 207 | 207 |
Revenues | $ 640 | $ 656 | $ 1,284 | $ 1,332 |
Information about QVC's Opera_4
Information about QVC's Operating Segments (Depreciation/Amortization by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Depreciation | $ 54 | $ 43 | $ 100 | $ 87 |
Amortization | 70 | 55 | 142 | 111 |
QxH [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 28 | 30 | 56 | 59 |
Amortization | 67 | 52 | 136 | 105 |
QVC-International | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 26 | 13 | 44 | 28 |
Amortization | $ 3 | $ 3 | $ 6 | $ 6 |
Information about QVC's Opera_5
Information about QVC's Operating Segments (Total Assets and Capital Expenditures by Segment) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total assets | $ 14,399 | $ 14,856 |
Capital expenditures | 153 | |
Property and equipment, net of accumulated depreciation of $1,348 at June 30, 2019 and $1,281 at December 31, 2018 | 1,193 | $ 1,165 |
QxH [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 12,244 | |
Capital expenditures | 140 | |
Property and equipment, net of accumulated depreciation of $1,348 at June 30, 2019 and $1,281 at December 31, 2018 | 776 | |
QVC-International | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,155 | |
Capital expenditures | 13 | |
Property and equipment, net of accumulated depreciation of $1,348 at June 30, 2019 and $1,281 at December 31, 2018 | $ 417 |
Information about QVC's Opera_6
Information about QVC's Operating Segments (Reconciliation of Adjusted OIBDA to Income before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting [Abstract] | ||||
Adjusted OIBDA Excluding Transaction Related Costs | $ 501 | $ 501 | $ 954 | $ 977 |
Transaction related costs | (1) | (1) | (1) | (9) |
Stock-based compensation | (11) | (12) | (20) | (24) |
Depreciation and amortization | (124) | (98) | (242) | (198) |
Equity in losses of investee | (1) | (2) | (1) | (1) |
Gain (Loss) on Derivative Instruments, Net, Pretax | (1) | 0 | (3) | 1 |
Interest expense, net | (60) | (68) | (121) | (133) |
Foreign currency gain (loss) | 0 | 2 | (3) | 1 |
Income before income taxes | $ 303 | $ 322 | $ 563 | $ 614 |
Other Comprehensive Income (Acc
Other Comprehensive Income (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Foreign currency translation adjustments | ||
Beginning balance | $ (144) | $ (93) |
Other comprehensive income attributable to QVC, Inc. stockholder | 5 | (28) |
Ending balance | (139) | (121) |
AOCL | ||
Beginning balance | (144) | (93) |
Other comprehensive income attributable to QVC, Inc. stockholder | 5 | (28) |
Ending balance | $ (139) | $ (121) |
Other Comprehensive Income (Com
Other Comprehensive Income (Component of Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Foreign currency translation adjustments before tax | $ 14 | $ (97) | $ 8 | $ (26) |
Tax expense from foreign currency translation gain (loss) | 0 | 1 | 0 | 0 |
Foreign currency translation adjustments, net of tax | $ 14 | $ (96) | $ 8 | $ (26) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 1 Months Ended | |
Aug. 08, 2019 | Jun. 30, 2019 | |
Subsequent Event [Line Items] | ||
Dividends | $ 170 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,895 |
Guarantor_Non-Guarantor Subsi_3
Guarantor/Non-Guarantor Subsidiary Financial Information (Narrative) (Details) | Jun. 30, 2019 |
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | |
Subsidiary Guarantors, Ownership Percentage | 100.00% |
Guarantor_Non-Guarantor Subsi_4
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Financial Position) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | |||||||
Cash and cash equivalents | $ 450 | $ 543 | |||||
Restricted cash | 8 | 7 | |||||
Accounts receivable, net | 1,254 | 1,787 | |||||
Inventories | 1,306 | 1,280 | |||||
Prepaid expenses and other current assets | 135 | 216 | |||||
Total current assets | 3,153 | 3,833 | |||||
Property and equipment, net | 1,193 | 1,165 | |||||
Operating Lease, Right-of-Use Asset | 148 | $ 92 | 0 | ||||
Television distribution rights, net | 199 | 140 | |||||
Goodwill | 5,976 | 5,972 | |||||
Other intangible assets, net | 3,661 | 3,666 | |||||
Other noncurrent assets | 69 | 80 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Total assets | 14,399 | 14,856 | |||||
Current liabilities: | |||||||
Current portion of debt and finance lease obligations | 20 | 421 | |||||
Accounts payable-trade | 702 | 1,008 | |||||
Accrued liabilities | 857 | 1,026 | |||||
Intercompany accounts payable (receivable) | 0 | 0 | |||||
Total current liabilities | 1,579 | 2,455 | |||||
Long-term portion of debt and finance lease obligations | 5,072 | 4,699 | |||||
Deferred income taxes | 690 | 700 | |||||
Other long-term liabilities | 315 | 173 | |||||
Total liabilities | 7,656 | 8,027 | |||||
QVC, Inc. stockholder's equity: | |||||||
QVC, Inc. stockholder's equity | 6,627 | 6,710 | |||||
Noncontrolling interest | 116 | 119 | |||||
Total equity | 6,743 | $ 6,639 | 6,829 | $ 6,118 | $ 5,970 | $ 5,796 | |
Total liabilities and equity | 14,399 | 14,856 | |||||
Parent issuer- QVC, Inc. | |||||||
Current assets: | |||||||
Cash and cash equivalents | 11 | 73 | |||||
Restricted cash | 5 | 5 | |||||
Accounts receivable, net | 783 | 1,166 | |||||
Inventories | 752 | 725 | |||||
Prepaid expenses and other current assets | 65 | 95 | |||||
Total current assets | 1,616 | 2,064 | |||||
Property and equipment, net | 268 | 281 | |||||
Operating Lease, Right-of-Use Asset | 3 | ||||||
Television distribution rights, net | 0 | 0 | |||||
Goodwill | 4,190 | 4,190 | |||||
Other intangible assets, net | 547 | 529 | |||||
Other noncurrent assets | 11 | 8 | |||||
Investments in subsidiaries | 5,717 | 5,523 | |||||
Total assets | 12,352 | 12,595 | |||||
Current liabilities: | |||||||
Current portion of debt and finance lease obligations | 3 | 403 | |||||
Accounts payable-trade | 372 | 494 | |||||
Accrued liabilities | 150 | 358 | |||||
Intercompany accounts payable (receivable) | 62 | (95) | |||||
Total current liabilities | 587 | 1,160 | |||||
Long-term portion of debt and finance lease obligations | 4,921 | 4,540 | |||||
Deferred income taxes | 65 | 63 | |||||
Other long-term liabilities | 152 | 122 | |||||
Total liabilities | 5,725 | 5,885 | |||||
QVC, Inc. stockholder's equity: | |||||||
QVC, Inc. stockholder's equity | 6,627 | 6,710 | |||||
Noncontrolling interest | 0 | 0 | |||||
Total equity | 6,627 | 6,710 | |||||
Total liabilities and equity | 12,352 | 12,595 | |||||
Combined subsidiary guarantors | |||||||
Current assets: | |||||||
Cash and cash equivalents | 186 | 192 | |||||
Restricted cash | 0 | 0 | |||||
Accounts receivable, net | 181 | 307 | |||||
Inventories | 274 | 310 | |||||
Prepaid expenses and other current assets | 17 | 73 | |||||
Total current assets | 658 | 882 | |||||
Property and equipment, net | 236 | 213 | |||||
Operating Lease, Right-of-Use Asset | 14 | ||||||
Television distribution rights, net | 198 | 139 | |||||
Goodwill | 922 | 922 | |||||
Other intangible assets, net | 3,087 | 3,116 | |||||
Other noncurrent assets | 12 | 20 | |||||
Investments in subsidiaries | 943 | 885 | |||||
Total assets | 6,070 | 6,177 | |||||
Current liabilities: | |||||||
Current portion of debt and finance lease obligations | 1 | 1 | |||||
Accounts payable-trade | 106 | 201 | |||||
Accrued liabilities | 372 | 394 | |||||
Intercompany accounts payable (receivable) | (1,216) | (1,015) | |||||
Total current liabilities | (737) | (419) | |||||
Long-term portion of debt and finance lease obligations | 6 | 6 | |||||
Deferred income taxes | 684 | 695 | |||||
Other long-term liabilities | 22 | 34 | |||||
Total liabilities | (25) | 316 | |||||
QVC, Inc. stockholder's equity: | |||||||
QVC, Inc. stockholder's equity | 6,095 | 5,861 | |||||
Noncontrolling interest | 0 | 0 | |||||
Total equity | 6,095 | 5,861 | |||||
Total liabilities and equity | 6,070 | 6,177 | |||||
Combined non-guarantor subsidiaries | |||||||
Current assets: | |||||||
Cash and cash equivalents | 253 | 278 | |||||
Restricted cash | 3 | 2 | |||||
Accounts receivable, net | 290 | 314 | |||||
Inventories | 280 | 245 | |||||
Prepaid expenses and other current assets | 53 | 48 | |||||
Total current assets | 879 | 887 | |||||
Property and equipment, net | 689 | 671 | |||||
Operating Lease, Right-of-Use Asset | 131 | ||||||
Television distribution rights, net | 1 | 1 | |||||
Goodwill | 864 | 860 | |||||
Other intangible assets, net | 27 | 21 | |||||
Other noncurrent assets | 46 | 52 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Total assets | 2,637 | 2,492 | |||||
Current liabilities: | |||||||
Current portion of debt and finance lease obligations | 16 | 17 | |||||
Accounts payable-trade | 224 | 313 | |||||
Accrued liabilities | 335 | 274 | |||||
Intercompany accounts payable (receivable) | 1,154 | 1,110 | |||||
Total current liabilities | 1,729 | 1,714 | |||||
Long-term portion of debt and finance lease obligations | 145 | 153 | |||||
Deferred income taxes | (59) | (58) | |||||
Other long-term liabilities | 141 | 17 | |||||
Total liabilities | 1,956 | 1,826 | |||||
QVC, Inc. stockholder's equity: | |||||||
QVC, Inc. stockholder's equity | 565 | 547 | |||||
Noncontrolling interest | 116 | 119 | |||||
Total equity | 681 | 666 | |||||
Total liabilities and equity | 2,637 | 2,492 | |||||
Eliminations | |||||||
Current assets: | |||||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash | 0 | 0 | |||||
Accounts receivable, net | 0 | 0 | |||||
Inventories | 0 | 0 | |||||
Prepaid expenses and other current assets | 0 | 0 | |||||
Total current assets | 0 | 0 | |||||
Property and equipment, net | 0 | 0 | |||||
Operating Lease, Right-of-Use Asset | 0 | ||||||
Television distribution rights, net | 0 | 0 | |||||
Goodwill | 0 | 0 | |||||
Other intangible assets, net | 0 | 0 | |||||
Other noncurrent assets | 0 | 0 | |||||
Investments in subsidiaries | (6,660) | (6,408) | |||||
Total assets | (6,660) | (6,408) | |||||
Current liabilities: | |||||||
Current portion of debt and finance 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 finance lease obligations | 0 | 0 | |||||
Deferred income taxes | 0 | 0 | |||||
Other long-term liabilities | 0 | 0 | |||||
Total liabilities | 0 | 0 | |||||
QVC, Inc. stockholder's equity: | |||||||
QVC, Inc. stockholder's equity | (6,660) | (6,408) | |||||
Noncontrolling interest | 0 | 0 | |||||
Total equity | (6,660) | (6,408) | |||||
Total liabilities and equity | $ (6,660) | $ (6,408) |
Guarantor_Non-Guarantor Subsi_5
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | $ 2,514 | $ 2,556 | $ 5,015 | $ 5,158 |
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 1,578 | 1,589 | 3,188 | 3,245 |
Operating costs and expenses: | ||||
Operating | 179 | 209 | 356 | 422 |
Selling, general and administrative, including transaction related costs and stock-based compensation | 268 | 270 | 538 | 547 |
Depreciation | 54 | 43 | 100 | 87 |
Amortization | 70 | 55 | 142 | 111 |
Operating expenses | 2,149 | 2,166 | 4,324 | 4,412 |
Operating income | 365 | 390 | 691 | 746 |
Interest expense, net | (60) | (68) | (121) | (133) |
Foreign currency gain (loss) | 0 | 2 | (3) | 1 |
Intercompany Interest (Expense) Income | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense) | (62) | (68) | (128) | (132) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 303 | 322 | 563 | 614 |
Equity in losses of investee | (1) | (2) | (1) | (1) |
Gain on Derivative Instruments, Pretax | (1) | (3) | ||
Other (expense) income: | ||||
Income tax expense | (85) | (78) | (159) | (158) |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 218 | 244 | 404 | 456 |
Less net income attributable to the noncontrolling interest | (12) | (11) | (22) | (22) |
Net income attributable to QVC, Inc. stockholder | 206 | 233 | 382 | 434 |
Parent issuer- QVC, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 1,423 | 1,460 | 2,810 | 2,915 |
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 847 | 858 | 1,692 | 1,736 |
Operating costs and expenses: | ||||
Operating | 101 | 97 | 204 | 199 |
Selling, general and administrative, including transaction related costs and stock-based compensation | 286 | 273 | 559 | 552 |
Depreciation | 15 | 17 | 31 | 33 |
Amortization | 18 | 19 | 37 | 39 |
Operating expenses | 1,267 | 1,264 | 2,523 | 2,559 |
Operating income | 156 | 196 | 287 | 356 |
Interest expense, net | (59) | (57) | (120) | (114) |
Foreign currency gain (loss) | 1 | 6 | (1) | 2 |
Intercompany Interest (Expense) Income | 8 | (8) | 16 | (15) |
Nonoperating Income (Expense) | (51) | (59) | (108) | (127) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 105 | 137 | 179 | 229 |
Equity in losses of investee | 0 | 0 | 0 | 0 |
Gain on Derivative Instruments, Pretax | (1) | (3) | ||
Other (expense) income: | ||||
Income tax expense | (32) | (38) | (58) | (60) |
Equity in earnings of subsidiaries, net of tax | 145 | 145 | 283 | 287 |
Net income | 218 | 244 | 404 | 456 |
Less net income attributable to the noncontrolling interest | (12) | (11) | (22) | (22) |
Net income attributable to QVC, Inc. stockholder | 206 | 233 | 382 | 434 |
Combined subsidiary guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 695 | 691 | 1,408 | 1,423 |
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 342 | 335 | 715 | 706 |
Operating costs and expenses: | ||||
Operating | 98 | 123 | 192 | 249 |
Selling, general and administrative, including transaction related costs and stock-based compensation | 45 | 62 | 99 | 131 |
Depreciation | 9 | 9 | 18 | 18 |
Amortization | 48 | 34 | 98 | 67 |
Operating expenses | 542 | 563 | 1,122 | 1,171 |
Operating income | 153 | 128 | 286 | 252 |
Interest expense, net | 0 | (9) | 2 | (17) |
Foreign currency gain (loss) | 0 | 0 | 0 | 0 |
Intercompany Interest (Expense) Income | 10 | 38 | 18 | 76 |
Nonoperating Income (Expense) | 10 | 29 | 20 | 60 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 163 | 157 | 306 | 312 |
Equity in losses of investee | 0 | 0 | 0 | 0 |
Gain on Derivative Instruments, Pretax | 0 | 0 | ||
Other (expense) income: | ||||
Income tax expense | (32) | (27) | (57) | (62) |
Equity in earnings of subsidiaries, net of tax | 0 | 9 | 5 | 34 |
Net income | 131 | 139 | 254 | 284 |
Less net income attributable to the noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to QVC, Inc. stockholder | 131 | 139 | 254 | 284 |
Combined non-guarantor subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 693 | 704 | 1,390 | 1,432 |
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 422 | 433 | 851 | 880 |
Operating costs and expenses: | ||||
Operating | 67 | 70 | 137 | 144 |
Selling, general and administrative, including transaction related costs and stock-based compensation | 114 | 116 | 226 | 229 |
Depreciation | 30 | 17 | 51 | 36 |
Amortization | 4 | 2 | 7 | 5 |
Operating expenses | 637 | 638 | 1,272 | 1,294 |
Operating income | 56 | 66 | 118 | 138 |
Interest expense, net | (1) | (2) | (3) | (2) |
Foreign currency gain (loss) | (1) | (4) | (2) | (1) |
Intercompany Interest (Expense) Income | (18) | (30) | (34) | (61) |
Nonoperating Income (Expense) | (21) | (38) | (40) | (65) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 35 | 28 | 78 | 73 |
Equity in losses of investee | (1) | (2) | (1) | (1) |
Gain on Derivative Instruments, Pretax | 0 | 0 | ||
Other (expense) income: | ||||
Income tax expense | (21) | (13) | (44) | (36) |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 14 | 15 | 34 | 37 |
Less net income attributable to the noncontrolling interest | (12) | (11) | (22) | (22) |
Net income attributable to QVC, Inc. stockholder | 2 | 4 | 12 | 15 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | (297) | (299) | (593) | (612) |
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | (33) | (37) | (70) | (77) |
Operating costs and expenses: | ||||
Operating | (87) | (81) | (177) | (170) |
Selling, general and administrative, including transaction related costs and stock-based compensation | (177) | (181) | (346) | (365) |
Depreciation | 0 | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 | 0 |
Operating expenses | (297) | (299) | (593) | (612) |
Operating income | 0 | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 | 0 |
Foreign currency gain (loss) | 0 | 0 | 0 | 0 |
Intercompany Interest (Expense) Income | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense) | 0 | 0 | 0 | 0 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 0 | 0 | 0 | 0 |
Equity in losses of investee | 0 | 0 | 0 | 0 |
Gain on Derivative Instruments, Pretax | 0 | 0 | ||
Other (expense) income: | ||||
Income tax expense | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | (145) | (154) | (288) | (321) |
Net income | (145) | (154) | (288) | (321) |
Less net income attributable to the noncontrolling interest | 12 | 11 | 22 | 22 |
Net income attributable to QVC, Inc. stockholder | (133) | (143) | (266) | (299) |
QVC-International | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 640 | 656 | 1,284 | 1,332 |
Operating costs and expenses: | ||||
Depreciation | 26 | 13 | 44 | 28 |
Amortization | 3 | 3 | 6 | 6 |
QxH [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 1,874 | 1,900 | 3,731 | 3,826 |
Operating costs and expenses: | ||||
Depreciation | 28 | 30 | 56 | 59 |
Amortization | 67 | 52 | 136 | 105 |
Home | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 886 | 886 | 1,812 | 1,872 |
Home | QVC-International | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 231 | 235 | 478 | 495 |
Home | QxH [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 655 | 651 | 1,334 | 1,377 |
Apparel | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 452 | 494 | 890 | 938 |
Operating costs and expenses: | ||||
Gain on Derivative Instruments, Pretax | 0 | |||
Apparel | QVC-International | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 108 | 116 | 220 | 235 |
Operating costs and expenses: | ||||
Gain on Derivative Instruments, Pretax | 1 | |||
Apparel | QxH [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 344 | 378 | 670 | 703 |
Operating costs and expenses: | ||||
Gain on Derivative Instruments, Pretax | 0 | |||
Beauty | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 475 | 474 | 910 | 924 |
Beauty | QVC-International | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 158 | 158 | 301 | 302 |
Beauty | QxH [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 317 | 316 | 609 | 622 |
Accessories | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 312 | 302 | 594 | 587 |
Accessories | QVC-International | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 65 | 72 | 127 | 139 |
Accessories | QxH [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 247 | 230 | 467 | 448 |
Electronics | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 195 | 186 | 401 | 386 |
Electronics | QVC-International | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 22 | 22 | 47 | 48 |
Electronics | QxH [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 173 | 164 | 354 | 338 |
Jewelry | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 143 | 161 | 307 | 348 |
Jewelry | QVC-International | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 50 | 48 | 102 | 103 |
Jewelry | QxH [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 93 | 113 | 205 | 245 |
Other revenue | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 51 | 53 | 101 | 103 |
Other revenue | QVC-International | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 6 | 5 | 9 | 10 |
Other revenue | QxH [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | $ 45 | $ 48 | $ 92 | $ 93 |
Guarantor_Non-Guarantor Subsi_6
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 218 | $ 244 | $ 404 | $ 456 |
Foreign currency translation adjustments, net of tax | 14 | (96) | 8 | (26) |
Total comprehensive income | 232 | 148 | 412 | 430 |
Comprehensive income attributable to noncontrolling interest | (15) | (6) | (25) | (24) |
Comprehensive income attributable to QVC, Inc. stockholder | 217 | 142 | 387 | 406 |
Parent issuer- QVC, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 218 | 244 | 404 | 456 |
Foreign currency translation adjustments, net of tax | 14 | (96) | 8 | (26) |
Total comprehensive income | 232 | 148 | 412 | 430 |
Comprehensive income attributable to noncontrolling interest | (15) | (6) | (25) | (24) |
Comprehensive income attributable to QVC, Inc. stockholder | 217 | 142 | 387 | 406 |
Combined subsidiary guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 131 | 139 | 254 | 284 |
Foreign currency translation adjustments, net of tax | 0 | 0 | 0 | 0 |
Total comprehensive income | 131 | 139 | 254 | 284 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributable to QVC, Inc. stockholder | 131 | 139 | 254 | 284 |
Combined non-guarantor subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 14 | 15 | 34 | 37 |
Foreign currency translation adjustments, net of tax | 14 | (96) | 8 | (26) |
Total comprehensive income | 28 | (81) | 42 | 11 |
Comprehensive income attributable to noncontrolling interest | (15) | (6) | (25) | (24) |
Comprehensive income attributable to QVC, Inc. stockholder | 13 | (87) | 17 | (13) |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (145) | (154) | (288) | (321) |
Foreign currency translation adjustments, net of tax | (14) | 96 | (8) | 26 |
Total comprehensive income | (159) | (58) | (296) | (295) |
Comprehensive income attributable to noncontrolling interest | 15 | 6 | 25 | 24 |
Comprehensive income attributable to QVC, Inc. stockholder | $ (144) | $ (52) | $ (271) | $ (271) |
Guarantor_Non-Guarantor Subsi_7
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Cash Flow) (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | ||||
Net cash provided by operating activities | $ 699 | $ 651 | ||
Investing activities: | ||||
Capital expenditures | (153) | (74) | ||
Expenditures for television distribution rights | (124) | (61) | ||
Other investing activities | 29 | (8) | ||
Changes in other noncurrent assets | (13) | 0 | ||
Intercompany investing activities | 0 | 0 | ||
Net cash used in investing activities | (261) | (143) | ||
Financing activities: | ||||
Principal payments of senior secured credit facility and finance lease obligations | (1,425) | (1,608) | ||
Principal borrowings of debt from senior secured credit facility | 1,795 | 1,458 | ||
Repayments of Secured Debt | 400 | 0 | ||
Capital contribution received from Qurate Retail, Inc. | 0 | 140 | ||
Dividends paid to Qurate Retail, Inc. | (469) | (243) | ||
Dividends paid to noncontrolling interest | (28) | (23) | ||
Other financing activities | (4) | (14) | ||
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | ||
Proceeds from (Payments for) Intercompany Financing Activities | 0 | 0 | ||
Net cash used in financing activities | (531) | (290) | ||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 1 | 4 | ||
Net increase in cash, cash equivalents and restricted cash | (92) | 222 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 458 | 512 | $ 550 | $ 290 |
Parent issuer- QVC, Inc. | ||||
Operating activities: | ||||
Net cash provided by operating activities | 293 | 345 | ||
Investing activities: | ||||
Capital expenditures | (61) | (39) | ||
Expenditures for television distribution rights | 0 | 0 | ||
Other investing activities | 0 | 0 | ||
Changes in other noncurrent assets | (10) | 1 | ||
Intercompany investing activities | 77 | 89 | ||
Net cash used in investing activities | 6 | 51 | ||
Financing activities: | ||||
Principal payments of senior secured credit facility and finance lease obligations | (1,420) | (1,442) | ||
Principal borrowings of debt from senior secured credit facility | 1,795 | 1,278 | ||
Repayments of Secured Debt | (400) | |||
Capital contribution received from Qurate Retail, Inc. | 140 | |||
Dividends paid to Qurate Retail, Inc. | (469) | (243) | ||
Dividends paid to noncontrolling interest | 0 | 0 | ||
Other financing activities | (4) | (7) | ||
Net short-term intercompany debt borrowings (repayments) | 157 | (86) | ||
Proceeds from (Payments for) Intercompany Financing Activities | (20) | (14) | ||
Net cash used in financing activities | (361) | (374) | ||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | ||
Net increase in cash, cash equivalents and restricted cash | (62) | 22 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 16 | 29 | 78 | 7 |
Combined subsidiary guarantors | ||||
Operating activities: | ||||
Net cash provided by operating activities | 383 | 252 | ||
Investing activities: | ||||
Capital expenditures | (28) | (7) | ||
Expenditures for television distribution rights | (124) | (60) | ||
Other investing activities | 29 | (8) | ||
Changes in other noncurrent assets | 8 | 0 | ||
Intercompany investing activities | (319) | (105) | ||
Net cash used in investing activities | (434) | (180) | ||
Financing activities: | ||||
Principal payments of senior secured credit facility and finance lease obligations | 0 | (160) | ||
Principal borrowings of debt from senior secured credit facility | 0 | 180 | ||
Repayments of Secured Debt | 0 | |||
Capital contribution received from Qurate Retail, Inc. | 0 | |||
Dividends paid to Qurate Retail, Inc. | 0 | 0 | ||
Dividends paid to noncontrolling interest | 0 | 0 | ||
Other financing activities | 0 | (7) | ||
Net short-term intercompany debt borrowings (repayments) | (201) | 36 | ||
Proceeds from (Payments for) Intercompany Financing Activities | 246 | 5 | ||
Net cash used in financing activities | 45 | 54 | ||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | ||
Net increase in cash, cash equivalents and restricted cash | (6) | 126 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 186 | 181 | 192 | 55 |
Combined non-guarantor subsidiaries | ||||
Operating activities: | ||||
Net cash provided by operating activities | 23 | 54 | ||
Investing activities: | ||||
Capital expenditures | (64) | (28) | ||
Expenditures for television distribution rights | 0 | (1) | ||
Other investing activities | 0 | 0 | ||
Changes in other noncurrent assets | (11) | (1) | ||
Intercompany investing activities | 0 | 0 | ||
Net cash used in investing activities | (75) | (30) | ||
Financing activities: | ||||
Principal payments of senior secured credit facility and finance lease obligations | (5) | (6) | ||
Principal borrowings of debt from senior secured credit facility | 0 | 0 | ||
Repayments of Secured Debt | 0 | |||
Capital contribution received from Qurate Retail, Inc. | 0 | |||
Dividends paid to Qurate Retail, Inc. | 0 | 0 | ||
Dividends paid to noncontrolling interest | (28) | (23) | ||
Other financing activities | 0 | 0 | ||
Net short-term intercompany debt borrowings (repayments) | 44 | 50 | ||
Proceeds from (Payments for) Intercompany Financing Activities | 16 | 25 | ||
Net cash used in financing activities | 27 | 46 | ||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 1 | 4 | ||
Net increase in cash, cash equivalents and restricted cash | (24) | 74 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 256 | 302 | 280 | 228 |
Eliminations | ||||
Operating activities: | ||||
Net cash provided by operating activities | 0 | 0 | ||
Investing activities: | ||||
Capital expenditures | 0 | 0 | ||
Expenditures for television distribution rights | 0 | 0 | ||
Other investing activities | 0 | 0 | ||
Changes in other noncurrent assets | 0 | 0 | ||
Intercompany investing activities | 242 | 16 | ||
Net cash used in investing activities | 242 | 16 | ||
Financing activities: | ||||
Principal payments of senior secured credit facility and finance lease obligations | 0 | 0 | ||
Principal borrowings of debt from senior secured credit facility | 0 | 0 | ||
Repayments of Secured Debt | 0 | |||
Capital contribution received from Qurate Retail, Inc. | 0 | |||
Dividends paid to Qurate Retail, Inc. | 0 | 0 | ||
Dividends paid to noncontrolling interest | 0 | 0 | ||
Other financing activities | 0 | 0 | ||
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | ||
Proceeds from (Payments for) Intercompany Financing Activities | (242) | (16) | ||
Net cash used in financing activities | (242) | (16) | ||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | ||
Net increase in cash, cash equivalents and restricted cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 0 | $ 0 | $ 0 | $ 0 |