Document and Entity Information
Document and Entity Information Document $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
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 | shares | 1 |
Document Type | 10-K |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Current Reporting Status submitted electronically | Yes |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Public Float | $ | $ 0 |
Entity Shell Company | false |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 561 | $ 543 |
Restricted cash | 8 | 7 |
Accounts receivable, less allowance for doubtful accounts of $123 at December 31, 2019 and $112 at December 31, 2018 | 1,813 | 1,787 |
Inventories | 1,214 | 1,280 |
Prepaid expenses and other current assets | 184 | 216 |
Total current assets | 3,780 | 3,833 |
Noncurrent assets: | ||
Property and equipment, net of accumulated depreciation of $1,338 at December 31, 2019 and $1,281 at December 31, 2018 | 1,215 | 1,165 |
Operating Lease, Right-of-Use Asset | 214 | 0 |
Television Distribution Rights, Net | 140 | 140 |
Goodwill | 5,971 | 5,972 |
Other intangible assets, net | 3,498 | 3,666 |
Other noncurrent assets | 109 | 80 |
Total assets | 14,927 | 14,856 |
Current liabilities: | ||
Current portion of debt and finance lease obligations | 18 | 421 |
Accounts payable-trade | 913 | 1,008 |
Accrued liabilities | 1,045 | 1,026 |
Total current liabilities | 1,976 | 2,455 |
Noncurrent liabilities: | ||
Long-term portion of debt and finance lease obligations | 5,101 | 4,699 |
Deferred income taxes | 724 | 700 |
Other long-term liabilities | 322 | 173 |
Total liabilities | 8,123 | 8,027 |
QVC, Inc. stockholder's equity: | ||
Common stock, $0.01 par value, 1 authorized share | 0 | 0 |
Additional paid-in capital | 9,208 | 9,123 |
Accumulated deficit | (2,390) | (2,269) |
Accumulated other comprehensive loss | (144) | (144) |
Total QVC, Inc. stockholder's equity | 6,674 | 6,710 |
Noncontrolling interest | 130 | 119 |
Total equity | 6,804 | 6,829 |
Total liabilities and equity | $ 14,927 | $ 14,856 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 123 | $ 112 |
Accumulated depreciation | $ 1,338 | $ 1,281 |
Common stock par value | $ 0.01 | $ 0.01 |
Authorized shares | 1 | 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net revenue | $ 3,467 | $ 2,504 | $ 2,514 | $ 2,501 | $ 3,555 | $ 2,569 | $ 2,556 | $ 2,602 | $ 10,986 | $ 11,282 | $ 8,771 |
Cost of Goods and Services Sold | 7,148 | 7,248 | 5,598 | ||||||||
Operating costs and expenses: | |||||||||||
Operating | 768 | 881 | 601 | ||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 1,128 | 1,200 | 744 | ||||||||
Depreciation | 186 | 174 | 155 | ||||||||
Amortization | 282 | 237 | 364 | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | (147) | (30) | 0 | ||||||||
Operating Expenses | 9,659 | 9,770 | 7,462 | ||||||||
Operating income | 306 | 330 | 365 | 326 | 461 | 305 | 390 | 356 | 1,327 | 1,512 | 1,309 |
Other (expense) income: | |||||||||||
Equity in losses of investee | 0 | (3) | (3) | ||||||||
Losses on financial instruments | (5) | (2) | 0 | ||||||||
Interest expense, net | (240) | (243) | (214) | ||||||||
Foreign currency loss | (3) | 0 | (6) | ||||||||
Loss on extinguishment of debt | 0 | (2) | 0 | ||||||||
Nonoperating expense | (248) | (250) | (223) | ||||||||
Income before income taxes | 1,079 | 1,262 | 1,086 | ||||||||
Income tax expense | (262) | (334) | (139) | ||||||||
Net income | 225 | 188 | 218 | 186 | 291 | 181 | 244 | 212 | 817 | 928 | 947 |
Less net income attributable to the noncontrolling interest | (50) | (46) | (46) | ||||||||
Net income attributable to QVC, Inc. stockholder | $ 211 | $ 174 | $ 206 | $ 176 | $ 278 | $ 170 | $ 233 | $ 201 | $ 767 | $ 882 | $ 901 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 225 | $ 188 | $ 218 | $ 186 | $ 291 | $ 181 | $ 244 | $ 212 | $ 817 | $ 928 | $ 947 |
Foreign currency translation adjustments, net of tax | 1 | (48) | 135 | ||||||||
Total comprehensive income | 818 | 880 | 1,082 | ||||||||
Comprehensive income attributable to noncontrolling interest | (51) | (49) | (50) | ||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ 767 | $ 831 | $ 1,032 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Net income | $ 817 | $ 928 | $ 947 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in losses of investee | 0 | 3 | 3 |
Increase (Decrease) in Other Deferred Liability | (8) | (30) | (329) |
Foreign currency loss | 3 | 0 | 6 |
Depreciation | 186 | 174 | 155 |
Amortization | 282 | 237 | 364 |
Change in fair value of financial instruments and non-cash interest | 12 | 8 | 4 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 147 | 30 | 0 |
Loss on extinguishment of debt | 0 | 2 | 0 |
Stock-based compensation | 39 | 46 | 39 |
Change in other long-term liabilities | (42) | 42 | (19) |
non-cash charges | 32 | 0 | 0 |
Increase (Decrease) in Accounts Receivable | 10 | 110 | 127 |
Increase (Decrease) in Inventories | (68) | 113 | 43 |
Increase (Decrease) in Prepaid Expense | 16 | 97 | 0 |
Increase (Decrease) in Accounts Payable, Trade | (74) | 11 | 50 |
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities | (114) | 25 | 152 |
Net Cash Provided by (Used in) Operating Activities | 1,322 | 1,156 | 1,202 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Capital Expenditures, Net | 291 | 228 | 152 |
Payments for Cable and Satellite Television Distribution Rights | 134 | 140 | 50 |
Other investing activities | 29 | (29) | 0 |
Increase (Decrease) in Other Noncurrent Assets | 11 | 16 | 1 |
Payments for (Proceeds from) Businesses and Interest in Affiliates | 0 | 0 | 22 |
Investing activities: | (407) | (413) | (181) |
Repayments of Debt and Lease Obligation | 2,599 | 3,541 | 2,278 |
Proceeds from Long-term Lines of Credit | 2,496 | 2,750 | 2,162 |
Repayments of Secured Debt | (400) | 0 | 0 |
Proceeds from Issuance of Secured Debt | 500 | 225 | 0 |
Payments of Debt Issuance Costs | 18 | 14 | 0 |
Proceeds from Contributions from Parent | 50 | 520 | 0 |
Payments of Dividends | 879 | 367 | 866 |
Dividends paid to noncontrolling interest | 40 | 40 | 40 |
Proceeds from (Payments for) Other Financing Activities | (4) | (18) | (16) |
Net Cash Provided by (Used in) Financing Activities | (894) | (485) | (1,038) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (2) | 2 | 13 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 19 | 260 | (4) |
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | 550 | 290 | |
Cash, Cash Equivalents, and Restricted Cash, End of Period | 569 | 550 | 290 |
Cash paid for taxes-to Qurate Retail Inc. | 209 | 273 | 363 |
Cash paid for taxes-other | 87 | 134 | 81 |
Cash paid for interest | 238 | 241 | 211 |
Non-cash capital additions obtained in exchange for liabilities | $ 36 | $ 0 | $ 0 |
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 |
Common Stock, Shares, Outstanding (beginning) at Dec. 31, 2016 | 1 | |||||
Balance at Dec. 31, 2016 | $ 3,895 | $ 0 | $ 6,851 | $ (2,832) | $ (224) | $ 100 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 947 | 0 | 901 | 0 | 46 | |
Foreign currency translation adjustments, net of tax | 135 | 0 | 0 | 131 | 4 | |
Proceeds from Contributions from Parent | 0 | |||||
Dividends paid to Qurate Retail, Inc. and noncontrolling interest | (906) | 0 | (866) | 0 | (40) | |
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc. | 31 | 31 | 0 | 0 | 0 | |
Withholding taxes on net share settlements of stock-based compensation | (16) | (16) | 0 | 0 | 0 | |
Business Combination, Consideration Transferred | (1,671) | (1,671) | 0 | 0 | 0 | |
Stock-based compensation | 39 | 39 | 0 | 0 | 0 | |
Balance at Dec. 31, 2017 | 5,796 | $ 0 | 8,576 | (2,797) | (93) | 110 |
Common Stock, Shares, Outstanding (ending) at Dec. 31, 2017 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 928 | 0 | 882 | 0 | 46 | |
Foreign currency translation adjustments, net of tax | (48) | 0 | 0 | (51) | 3 | |
Proceeds from Contributions from Parent | 520 | 520 | 0 | 0 | 0 | |
Dividends paid to Qurate Retail, Inc. and noncontrolling interest | 407 | 0 | 367 | 0 | 40 | |
Withholding taxes on net share settlements of stock-based compensation | (19) | (19) | 0 | 0 | 0 | |
Stock-based compensation | 46 | 46 | 0 | 0 | 0 | |
Balance at Dec. 31, 2018 | 6,829 | $ 0 | 9,123 | (2,269) | (144) | 119 |
Common Stock, Shares, Outstanding (ending) at Dec. 31, 2018 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 817 | 0 | 767 | 0 | 50 | |
Foreign currency translation adjustments, net of tax | 1 | 0 | 0 | 0 | 1 | |
Proceeds from Contributions from Parent | 50 | 50 | 0 | 0 | 0 | |
Dividends paid to Qurate Retail, Inc. and noncontrolling interest | (919) | 0 | (879) | 0 | (40) | |
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc. | (9) | 0 | (9) | 0 | 0 | |
Withholding taxes on net share settlements of stock-based compensation | (4) | (4) | 0 | 0 | 0 | |
Stock-based compensation | 39 | 39 | 0 | 0 | 0 | |
Balance at Dec. 31, 2019 | $ 6,804 | $ 0 | $ 9,208 | $ (2,390) | $ (144) | $ 130 |
Common Stock, Shares, Outstanding (ending) at Dec. 31, 2019 | 1 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of presentation | Basis of Presentation QVC, Inc. and its consolidated subsidiaries (unless otherwise indicated or required by the context, the terms "we," "our," "us," the "Company" and "QVC" refer to QVC, Inc. and its consolidated subsidiaries) is a retailer of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised shopping programs, the Internet and mobile applications. In the 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, QVC3, HSN, and HSN2. During the first quarter of 2019, the Company transitioned its Beauty iQ broadcast channel to QVC 3 and Beauty iQ content was moved to a digital only platform. The Company's U.S. programming is also available on QVC.com and HSN.com, QVC's "U.S. websites"; applications via streaming video; Facebook Live, Roku, Apple TV, and Amazon Fire; mobile applications; social pages and over-the-air broadcasters. 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 our U.S. websites. QVC.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, our U.S. websites allow shoppers to browse, research, compare and perform targeted searches for products, read customer reviews, control the order-entry process and conveniently access their QVC 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. QVC-Japan paid dividends to Mitsui of $40 million in each of the years ended December 31, 2019, 2018 and 2017. 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 broadcast network and an e-commerce website. This joint venture is accounted for as an equity method investment recorded as equity in losses of investee in the consolidated statements of operations. The Company 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 subsidiary Zulily, LLC ("Zulily"), as well as other minority investments. QVC is part of the Qurate Retail Group ("QRG"), formerly QVC Group, a portfolio of brands including QVC, Zulily and the Cornerstone brands ("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 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 December 29, 2017, Qurate Retail completed the acquisition of the remaining 62% ownership interest of HSN, Inc. ("HSN") it did not previously 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" operating segment (see note 16). As a result of the common control transaction with Qurate Retail, the Company retrospectively adjusted certain balances within the consolidated financial statements as of and for the year ended December 31, 2017, 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 consolidated financial statements herein. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. QVC recorded transaction related costs of $39 million during the year ended December 31, 2017, primarily related to restructuring, integrating and advisory fees that were incurred by QVC as it related to Qurate Retail's acquisition of HSN on December 31, 2017. On October 17, 2018, QRG announced a series of initiatives designed to better position its QxH business (“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, which commenced in 2019 (see note 9). QVC recorded transaction related costs of $1 million and $60 million during the years ended December 31, 2019 and 2018, respectively, which primarily related to severance, other QRG Initiatives and the closure of operations France as discussed below. In the fourth quarter of 2018, QVC recorded a charge related to the potential closure of its operations in France. For the year ended December 31, 2018, QVC recorded $9 million in severance expenses, which is included in transaction related costs (see note 16), and $4 million in inventory obsolescence related to these exit activities. No material severance or inventory obsolescence expenses related to these exit activities were recorded during 2019. 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 consolidated financial statements include the accounts of QVC, Inc. and its majority-owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Summary of Significant Accounting Policies (a) Cash and cash equivalents All highly liquid investments purchased with an original maturity of three months or less are classified as cash equivalents. Cash equivalents were $272 million and $267 million at December 31, 2019 and 2018 , respectively. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate their fair values (Level 1). See note 15. (b) Restricted cash Restricted cash at December 31, 2019 and 2018 primarily includes a cash deposit with a third party trustee that provides financial assurance that the Company will fulfill its obligations in relation to claims under its workers' compensation policy. (c) Accounts receivable A provision for customer bad debts is provided as a percentage of accounts receivable based on historical experience in the period of sale and is included within selling, general and administrative expense. A provision for noncustomer bad debt expense, related to amounts due from vendors for unsold and returned products, is provided based on an estimate of the probable expected losses and is included in cost of goods sold. (d) Inventories Inventories, consisting primarily of products held for sale, are stated at the lower of cost or net realizable value. Cost is determined by the average cost method, which approximates the first-in, first-out method. Assessments about the realizability of inventory require the Company to make judgments based on currently available information about the likely method of disposition including sales to individual customers, returns to product vendors, liquidations and the estimated recoverable values of each disposition category. (e) Property and equipment The costs of property and equipment are capitalized and depreciated over their estimated useful lives using the straight-line method beginning in the month of acquisition or in-service date. Finance leases are stated at the present value of minimum lease payments. When assets are sold or retired, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in net income. The costs of maintenance and repairs are charged to expense as incurred. (f) Capitalized interest The Company capitalizes interest cost incurred on debt during the construction of major projects exceeding one year. Capitalized interest was not material to the consolidated financial statements for any periods presented. (g) Internally developed software Internal software development costs are capitalized in accordance with guidance on accounting for the costs of computer software developed or obtained for internal use, and are classified within other intangible assets in the consolidated balance sheets. The Company amortizes computer software and internal software development costs over an estimated useful life of approximately three years using the straight-line method. (h) Goodwill and Intangible Assets Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment upon certain triggering events. Goodwill and other intangible assets with indefinite useful lives ("indefinite-lived intangible assets") are not amortized, but instead are tested for impairment at least annually. Our annual impairment assessment of our indefinite-lived intangible assets is performed during the fourth quarter of each year and more frequently if events and circumstances indicated that the asset might be impaired. QVC utilizes a qualitative assessment for determining whether step one of the goodwill impairment analysis is necessary. The accounting guidance permits entities to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform step one of the goodwill impairment test. In evaluating goodwill on a qualitative basis, QVC reviews the business performance of each reporting unit and evaluates other relevant factors as identified in the relevant accounting guidance to determine whether it is more likely than not that an indicated impairment exists for any of its reporting units. A reporting unit is defined in accounting guidance in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP" or "GAAP") as an operating segment or one level below an operating segment (also known as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. The Company considers QVC's reporting units to align with its operating segments. Refer to Note 16 for additional information. The Company considers whether there were any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges and the legal environments, and how these factors might impact country specific performance in future periods. If a step one test is considered necessary based on the qualitative factors, the Company compares the estimated fair value of a reporting unit to its carrying value. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company's valuation analysis are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. Any excess of the carrying value of the reporting unit over the fair value is recorded as an impairment charge. QVC also utilizes a qualitative assessment to evaluate the risk of impairment of indefinite-lived intangible assets. The accounting guidance permits entities to first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If deemed necessary based on qualitative factors, a quantitative test is used to determine if the carrying value of an indefinite-lived intangible asset exceeds its fair value. An impairment loss would be recognized to the extent that the carrying amount exceeded the asset's fair value in accordance with Accounting Standards Codification ("ASC") 350. Refer to note 6 for additional information. (i) Translation of foreign currencies Assets and liabilities of foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustments, net of applicable income taxes, are recorded as a component of accumulated other comprehensive loss in equity. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in the consolidated statements of operations as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions. (j) Revenue recognition For the years ended December 31, 2019 and 2018, the Company recognizes revenue at the time of shipment to customers. As a result of the adoption of ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), as of January 1, 2018, the revenue for shipments in transit is no longer recorded as deferred revenue. For the year ended December 31, 2017, the revenue for shipments in-transit was recorded as deferred revenue. The Company's general policy is to allow customers the right to return merchandise. An allowance for returned merchandise is provided at the time revenue is recorded as a percentage of sales based on historical experience. Refer to note 10 for further explanation. (k) Cost of goods sold Cost of goods sold primarily includes actual product cost, provision for obsolete inventory, buying allowances received from suppliers, shipping and handling costs and warehouse costs. (l) Advertising costs Advertising costs are expensed as incurred. Advertising costs amounted to $153 million , $138 million and $86 million for the years ended December 31, 2019, 2018 and 2017 , respectively. These costs were included in selling, general and administrative expenses in the consolidated statements of operations. (m) Stock-based compensation As described in note 11, the Company and Qurate Retail have granted certain stock-based awards to employees of the Company. The Company measures the cost of employee services received in exchange for an award of equity instruments (such as stock options and restricted stock) based on the grant-date fair value of the award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the award). Stock-based compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations. (n) Impairment of long-lived assets The Company reviews long-lived assets, such as property and equipment, internally developed software and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Impairment charges are recognized as an acceleration of depreciation expense or amortization expense in the consolidated statements of operations. (o) Derivatives The Company accounts for derivatives and hedging activities in accordance with standards issued by the Financial Accounting Standards Board ("FASB"), which requires that all derivative instruments be recorded on the balance sheet at their respective fair values. Fair value is based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. For derivatives designated as hedges, changes in the fair value are either offset against the changes in fair value of the designated hedged item through earnings or recognized in accumulated other comprehensive loss until the hedged item is recognized in earnings. The Company generally enters into derivative contracts that it intends to designate as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive loss to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. The ineffective portion of the change in fair value of a derivative instrument that qualifies as a cash flow hedge is reported in earnings. (p) Income taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in income in the period that includes the enactment date. When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other (expense) income in the consolidated statements of operations. (q) Noncontrolling interest The Company reports the noncontrolling interest of QVC-Japan within equity in the consolidated balance sheets and the amount of consolidated net income attributable to the noncontrolling interest is presented in the consolidated statements of operations. (s) Common control transaction As a result of the common control transaction with Qurate Retail (see note 1), QVC received the following assets and liabilities as of December 29, 2017 through a capital contribution, which reflected the initial purchase price allocation for HSN by Qurate Retail (in millions): Cash and cash equivalents $ 22 Accounts receivable 292 Inventory 185 Property and equipment 165 Goodwill 904 Other intangible assets 1,165 Other assets 37 Accounts payable-trade and accrued liabilities (366 ) Long-term portion of debt (460 ) Deferred income taxes (263 ) Other long-term liabilities (10 ) Capital contribution from Qurate Retail, Inc. $ 1,671 Goodwill is calculated by Qurate Retail as the excess of the consideration transferred for the acquisition over the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce, value associated with future customers, continued innovation and noncontractual relationships. Intangible assets acquired during 2017 were comprised of indefinite-lived tradenames of $627 million , customer relationships of $425 million with a weighted average life of approximately 9 years , capitalized software of $7 million with a weighted average life of approximately 3 years , and technology of $105 million with a weighted average life of approximately 7 years . None of the acquired goodwill is expected to be deductible for tax purposes. Included in operating income for the year ended December 31, 2017 is $38 million related to HSN’s operations since the date of acquisition, which is primarily related to severance cost and stock-based compensation post acquisition and included within selling, general and administrative costs, including transaction related costs and stock-based compensation, within the consolidated statement of operations. HSN’s other results of operations are not included in our consolidated statement of operations for the year ended December 31, 2017 as the results of the final two days of 2017 were considered immaterial to the consolidated financial statements. The unaudited pro forma net revenue and income before income taxes of QVC, prepared utilizing the historical financial statements of HSN, giving effect to purchase accounting related adjustments made at the time of acquisition, as if the transaction discussed above occurred on January 1, 2016, are $11,114 million and $1,163 million respectively for 2017. The unaudited pro forma information is not representative of QVC’s future financial position, future results of operations or future cash flows nor does it reflect what QVC’s financial position, results of operations or cash flows would have been if Qurate Retail had previously purchased HSN and QVC controlled HSN during the periods presented. The unaudited pro forma information includes transaction related costs incurred as a result of the acquisition of $39 million in 2017. (t) Investment in affiliate The Company holds an investment in China that is accounted for using the equity method. The equity method of accounting is used when the Company exercises significant influence, but does not have operating control, generally assumed to be 20%-50% ownership. Under the equity method, original investments are recorded at cost and adjusted by their share of undistributed earnings or losses of these companies. The excess of the Company's cost on its underlying interest in the net assets of the affiliate is allocated to identifiable intangible assets and goodwill. Equity investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. On July 4, 2012, the Company entered into a joint venture with CNR for a 49% interest in CNRS. The CNRS joint venture is accounted for as an equity method investment as a component of other noncurrent assets on the consolidated balance sheets and equity in losses of investee in the consolidated statements of operations. CNRS operates a retailing business in China through a televised shopping channel with an associated website. CNRS is headquartered in Beijing, China. As of December 31, 2019 and 2018, the investment in CNRS is $40 million and $38 million and is classified within other noncurrent assets on the consolidated balance sheets. (u) Use of estimates in the preparation of consolidated financial statements The preparation of consolidated 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, medical and other benefit related costs, depreciable lives of fixed assets, internally developed software, valuation of acquired intangible assets and goodwill, income taxes and stock-based compensation. (u) Recent accounting pronouncements Adoption of new accounting pronouncements In February 2016 and subsequently, the FASB issued new guidance which revises the accounting related to lessee accounting as part of ASC Topic 842, Leases ("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 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. Accounting pronouncements issued but not yet adopted 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 Company will adopt this new standard as of January 1, 2020 and does not expect it to have a material impact on its consolidated financial statements. |
Accounts Receivable Accounts Re
Accounts Receivable Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | Accounts Receivable The Company offers an installment payment option in all of our markets other than Japan (known as Easy-Pay for the QVC brand in the U.S. and the U.K.; Q-Pay in Germany and Italy and FlexPay for the HSN brand). The installment payment option permits customers to pay for items in two or more installments. When the installment payment option is offered by QVC and elected by the customer, the first installment is typically billed to the customer's credit card upon shipment. Generally, the customer's account is subsequently billed in additional monthly installments until the total purchase price of the products has been billed by the Company. In 2014, the Company amended and restated its agreement with a large consumer financial services company (the "Bank") pursuant to which the Bank provides revolving credit directly to QVC's customers for the sole purpose of purchasing merchandise or services with a private label credit card ("PLCC") company in the U.S. The agreement with the Bank was amended and restated in March 2017 and December 2018 and related to its QVC brand. In December 2018, the Company entered into a separate agreement with the Bank for its HSN brand. The Company receives a portion of the net economics of the credit card program. The Company cannot predict the extent to which customers will use the PLCC, nor the extent that they will make payments on their outstanding balances, PLCC income of $124 million and $118 million was recorded in net revenue during the years ended December 31, 2019 and 2018, respectively. Prior to the adoption of ASC 606, PLCC income was included as a reduction of selling, general and administrative expenses, which amounted to $105 million in 2017. The Company also accepts major credit cards for its sales. Accounts receivable from major credit cards represents amounts owed to QVC from the credit card clearing houses for amounts billed but not yet collected. Accounts receivable consisted of the following: December 31, (in millions) 2019 2018 Installment payment option $ 1,586 1,533 Major credit cards and customers 247 269 Other receivables 103 97 1,936 1,899 Less allowance for doubtful accounts (123 ) (112 ) Accounts receivable, net $ 1,813 1,787 A summary of activity in the allowance for doubtful accounts was as follows: (in millions) Balance Additions- Deductions- Balance 2019 $ 112 124 (113 ) 123 2018 91 112 (91 ) 112 2017 97 72 (78 ) 91 The carrying value of accounts receivable, adjusted for the reserves described above, approximates fair value as of December 31, 2019, 2018 and 2017 |
Property and Equipment, Net Pro
Property and Equipment, Net Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and equipment, net | Property and Equipment, Net Property and equipment consisted of the following: December 31, Estimated (in millions) 2019 2018 life Land $ 128 128 N/A Buildings and improvements 1,169 1,174 3 - 39 years Furniture and other equipment 586 543 2 -10 years Broadcast equipment 140 179 2 - 6 years Computer equipment 187 186 2 - 5 years Transponders and terrestrial transmitter (note 9) 177 178 3 - 15 years Projects in progress 166 58 N/A Property and equipment 2,553 2,446 Less: accumulated depreciation (1,338 ) (1,281 ) Property and equipment, net $ 1,215 1,165 N/A - Not applicable. Disposal of assets reduced property and equipment by $117 million and $56 million for the years ended December 31, 2019 and 2018 respectively. |
Television Distribution Rights,
Television Distribution Rights, Net | 12 Months Ended |
Dec. 31, 2019 | |
Television Distribution Rights [Abstract] | |
Schedule of television distribution rights | Television Distribution Rights, Net Television distribution rights consisted of the following: December 31, (in millions) 2019 2018 Television distribution rights $ 764 723 Less accumulated amortization (624 ) (583 ) Television distribution rights, net $ 140 140 The Company enters into affiliation agreements with television providers for carriage of the Company's shopping service, as well as for certain channel placement. If these television providers were to change the number of subscribers to the agreement through acquisition, it may change the amount paid by the Company. The Company's ability to continue to sell products to its customers is dependent on its ability to maintain and renew these affiliation agreements. In some cases, renewals are not agreed upon prior to the expiration of a given agreement while the programming continues to be carried by the relevant distributor without an effective agreement in place. The Company does not have distribution agreements with some of the cable operators that carry its programming. Television distribution rights are amortized using the straight-line method over the lives of the individual agreements. The remaining weighted average lives of the television distribution rights was approximately 1.3 years as of December 31, 2019 . Amortization expense for television distribution rights was $133 million , $77 million and $157 million for the years ended December 31, 2019, 2018 and 2017 , respectively. As of December 31, 2019 , related amortization expense for each of the next five years ending December 31 was as follows (in millions): 2020 $ 120 2021 17 2022 3 2023 — 2024 — In return for carrying QVC's signals, each programming distributor in the U.S. receives an allocated portion, based upon market share, of up to 5% of the net sales of merchandise sold via the television programs and from certain internet sales to customers located in the programming distributors' service areas. In Germany, Japan, the U.K., and Italy, programming distributors predominately receive an agreed-upon annual fee, a monthly fee per subscriber regardless of the net sales, a variable percentage of net sales or some combination of the above arrangements. The Company recorded expense related to these commissions of $350 million , $363 million and $298 million for the years ended December 31, 2019, 2018 and 2017, respectively, which is included as part of operating expenses in the consolidated statements of operations. Television distribution rights consisted of the following: December 31, (in millions) 2019 2018 Television distribution rights $ 764 723 Less accumulated amortization (624 ) (583 ) Television distribution rights, net $ 140 140 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Other Intangible Assets [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | (6) Goodwill and Other Intangible Assets, Net The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 were as follows: (in millions) QxH QVC-International Total Balance as of December 31, 2017 $ 5,094 885 5,979 Purchase accounting adjustments (1) 18 — 18 Exchange rate fluctuations — (25 ) (25 ) Balance as of December 31, 2018 5,112 860 5,972 Exchange rate fluctuations — (1 ) (1 ) Balance as of December 31, 2019 $ 5,112 859 5,971 (1) Adjustment to QxH goodwill is due to an increase in in the preliminary purchase price allocation of HSN by Qurate Retail during the year ended December 31, 2018. QVC utilizes a qualitative assessment for determining whether step one of the goodwill impairment analysis is necessary. If a step one test is considered necessary based on the qualitative factors, the Company compares the estimated fair value of a reporting unit to its carrying value. Any excess of the carrying value of the reporting unit over the fair value is recorded as an impairment charge. The Company considers QVC's reporting units to align with its operating segments. Refer to Note 16 for additional information. For the year ended December 31, 2019, QVC performed a qualitative assessment for its QxH and QVC-International reporting units as it was more likely than not that the fair values exceeded the carrying values for each of the reporting units. There was no goodwill impairment recorded during the years ended December 31, 2019, 2018 or 2017. Other intangible assets consisted of the following: December 31, 2019 2018 Weighted average remaining life (years) (in millions) Gross Accumulated Other intangible assets, net Gross Accumulated Other intangible assets, net Purchased and internally developed software $ 885 (603 ) 282 890 (640 ) 250 3 Affiliate and customer relationships 2,829 (2,499 ) 330 2,831 (2,450 ) 381 7 Debt origination fees 10 (2 ) 8 10 — 10 4 Tradenames (indefinite life) 2,878 — 2,878 3,025 — 3,025 N/A $ 6,602 (3,104 ) 3,498 6,756 (3,090 ) 3,666 N/A - Not applicable. Disposal of assets reduced gross other intangible assets by $130 million and $11 million for the years ended December 31, 2019 and 2018 , respectively. Amortization expense for other intangible assets was $149 million , $160 million and $207 million for the years ended December 31, 2019, 2018 and 2017 , respectively. QVC utilizes a qualitative assessment to evaluate the risk of impairment of indefinite-lived intangible assets. If deemed necessary based on qualitative factors, a quantitative test is used to determine if the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess in accordance with ASC 350-30-35. For 2019 and 2018, the company utilized a qualitative impairment assessment for the QVC tradename and a quantitative assessment for the HSN tradename. The company utilizes a relief from royalty method to determine the fair value. As of December 31, 2019, the HSN tradename within the QxH segment, with a carrying amount of $597 million , was written down to its fair value of $450 million resulting in an impairment charge of $147 million , which is reflected in impairment loss in the consolidated statement of operations. As of December 31, 2018, the HSN indefinite-lived tradename with a carrying amount of $627 million was written down to its fair value of $597 million resulting in an impairment charge of $30 million , which is reflected in impairment loss in the consolidated statement of operations. These fair value measurements are Level 3 fair value measurements based on unobservable inputs. There were no impairment losses recorded during the year ended December 31, 2017. Accumulated impairment loss as of December 31, 2019 is $177 million . As of December 31, 2019 , the related amortization and interest expense for each of the next five years ending December 31 was as follows (in millions): 2020 $ 123 2021 142 2022 124 2023 75 2024 62 |
Goodwill Disclosure [Text Block] | (h) Goodwill and Intangible Assets Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment upon certain triggering events. Goodwill and other intangible assets with indefinite useful lives ("indefinite-lived intangible assets") are not amortized, but instead are tested for impairment at least annually. Our annual impairment assessment of our indefinite-lived intangible assets is performed during the fourth quarter of each year and more frequently if events and circumstances indicated that the asset might be impaired. QVC utilizes a qualitative assessment for determining whether step one of the goodwill impairment analysis is necessary. The accounting guidance permits entities to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform step one of the goodwill impairment test. In evaluating goodwill on a qualitative basis, QVC reviews the business performance of each reporting unit and evaluates other relevant factors as identified in the relevant accounting guidance to determine whether it is more likely than not that an indicated impairment exists for any of its reporting units. A reporting unit is defined in accounting guidance in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP" or "GAAP") as an operating segment or one level below an operating segment (also known as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. The Company considers QVC's reporting units to align with its operating segments. Refer to Note 16 for additional information. The Company considers whether there were any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges and the legal environments, and how these factors might impact country specific performance in future periods. If a step one test is considered necessary based on the qualitative factors, the Company compares the estimated fair value of a reporting unit to its carrying value. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company's valuation analysis are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. Any excess of the carrying value of the reporting unit over the fair value is recorded as an impairment charge. QVC also utilizes a qualitative assessment to evaluate the risk of impairment of indefinite-lived intangible assets. The accounting guidance permits entities to first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If deemed necessary based on qualitative factors, a quantitative test is used to determine if the carrying value of an indefinite-lived intangible asset exceeds its fair value. An impairment loss would be recognized to the extent that the carrying amount exceeded the asset's fair value in accordance with Accounting Standards Codification ("ASC") 350. Refer to note 6 for additional information. QVC utilizes a qualitative assessment for determining whether step one of the goodwill impairment analysis is necessary. If a step one test is considered necessary based on the qualitative factors, the Company compares the estimated fair value of a reporting unit to its carrying value. Any excess of the carrying value of the reporting unit over the fair value is recorded as an impairment charge. The Company considers QVC's reporting units to align with its operating segments. The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 were as follows: (in millions) QxH QVC-International Total Balance as of December 31, 2017 $ 5,094 885 5,979 Purchase accounting adjustments (1) 18 — 18 Exchange rate fluctuations — (25 ) (25 ) Balance as of December 31, 2018 5,112 860 5,972 Exchange rate fluctuations — (1 ) (1 ) Balance as of December 31, 2019 $ 5,112 859 5,971 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Accrued liabilities | (7) Accrued Liabilities Accrued liabilities consisted of the following: December 31, (in millions) 2019 2018 Accounts payable non-trade $ 369 314 Allowance for sales returns 238 242 Accrued compensation and benefits 112 146 Sales and other taxes 104 101 Accrued interest 57 58 Operating lease liabilities 28 — Income taxes 23 37 Deferred revenue 19 24 Accrued cable distribution fees 9 39 Other 86 65 $ 1,045 1,026 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt disclosure | Long-Term Debt and Finance Lease Obligations Long-term debt and finance lease obligations consisted of the following: December 31, (in millions) 2019 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 6.25% Senior Secured Notes due 2068 500 — Senior secured credit facility 1,105 1,185 Finance lease obligations 181 188 Less debt issuance costs, net (40 ) (25 ) Total debt and finance lease obligations 5,119 5,120 Less current portion (18 ) (421 ) Long-term portion of debt and finance lease obligations $ 5,101 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. The interest on QVC's senior secured notes is payable semi-annually with the exception of the 6.375% Senior Secured Notes due 2067 (the "2067 Notes") and the 6.25% Senior Secured Notes due 2068 (the "2068 Notes"), which is payable quarterly. The 3.125% Senior Secured Notes due 2019 were repaid at maturity in April 2019. 6.375% Senior Secured Notes due 2067 On September 13, 2018, Q VC completed a registered debt offering for $225 million of the 2067 Notes at par. QVC has the option to call the 2067 Notes after 5 years at par value, plus accrued and unpaid interest. 6.25% Senior Secured Notes due 2068 On November 26, 2019, QVC completed a registered debt offering for $435 million of the 2068 Notes at par. QVC granted an option for underwriters to purchase up to an additional $65 million of the 2068 Notes, which was exercised on December 6, 2019, bringing the aggregate principal borrowed to $500 million . QVC has the option to call the 2068 Notes after 5 years at par value, plus accrued and unpaid interest. 4.75% Senior Secured Notes due 2027 On February 4, 2020, subsequent to the year ended December 31, 2019, Q VC completed a registered debt offering for $575 million of the 4.75% Senior Secured Notes due 2027 (the "2027 Notes") at par. Interest on the 2027 Notes will be paid semi-annually in February and August, with payments commencing on August 15, 2020. 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 (which was reduced to $2.95 billion , effective February 4, 2020 upon the closing of QVC's offering of the 2027 Notes) 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 an additional $50 million sub-limit for standby letters of credit (see note 14). The remaining $3.25 billion (which was subsequently reduced to $2.55 billion upon reduction of the revolving credit facility, effective February 4, 2020) 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 $2,392 million available under the terms of the senior secured credit facility at December 31, 2019 (which was subsequently reduced to $1,692 million upon the reduction of the revolving credit facility, effective February 4, 2020), including the portion available under the $400 million tranche on which Zulily may also borrow. The interest rate on the senior secured credit facility was 3.1% and 3.9% as of December 31, 2019 and 2018, respectively. The purpose of the amendment was to, among other things, repay certain fees and expenses, finance working capital needs and general corporate purposes of the Company and its respective subsidiaries and make certain restricted payments and loans to the Company's respective parents and affiliates . 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. In addition, 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 Zulily and 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. The swap arrangement expired in June 2019 . As of December 31, 2018, the fair value of the swap instrument was in a net asset position of $1 million which was included in prepaid expenses and other current assets. In July 2019, the Company entered into a three-year interest swap arrangement with a notional amount of $125 million . The swap arrangement did not qualify as a cash flow hedge under U.S. GAAP and the fair value of the swap instrument was in a net liability position of less than $1 million as of December 31, 2019 , which was included in other long-term liabilities. On December 31, 2018, QVC entered into a thirteen month interest rate swap arrangement 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 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 less than $1 million as of December 31, 2019 , which was included in prepaid expenses and other current assets. As of December 31, 2018, the fair value of the swap instrument was in a net asset position of $4 million which was included in prepaid expenses and other current assets. Changes in the fair value of the swaps are reflected in losses on financial instruments in the consolidated statements of operations. Other Debt Related Information QVC was in compliance with all of its debt covenants as of December 31, 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 4.7% as of December 31, 2019 . As of December 31, 2019 and 2018 , outstanding trade letters of credit totaled $12 million and $13 million , respectively. |
Leases and Transponder Service
Leases and Transponder Service Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Leases and Transponder Service Agreements [Abstract] | |
Leases of lessee disclosure | (9) Leases The Company has finance lease agreements with transponder and transmitter network suppliers for the right to transmit its signals in the U.S. and Germany. 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. Effective with the adoption of ASC 842 on January 1, 2019, 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 14 years , some of which may include the option to extend or terminate the leases. The components of lease cost for the year ended December 31, 2019 , were as follows: (in millions) December 31, 2019 Finance lease cost Depreciation of leased assets $ 20 Interest on lease liabilities 9 Total finance lease cost 29 Operating lease cost 32 Total lease cost $ 61 For the years ended December 31, 2018 and 2017, the Company recorded depreciation expense on finance leases (previously referred to as capital leases) of $14 million and $13 million , respectively, and recorded operating lease expenses of $34 million and $23 million , respectively. The remaining weighted-average lease term and the weighted-average discount rate were as follows: December 31, 2019 Weighted-average remaining lease term (years): Finance leases 9.2 Operating leases 12.4 Weighted-average discount rate: Finance leases 5.0 % Operating leases 6.1 % Supplemental balance sheet information related to leases was as follows: (in millions) December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 214 Accrued liabilities $ 28 Other long-term liabilities 190 Total operating lease liabilities $ 218 Finance Leases: Property and equipment $ 282 Accumulated depreciation (129 ) Property and equipment, net $ 153 Current portion of debt and finance lease obligations $ 18 Long-term portion of debt and finance lease obligations 163 Total finance lease liabilities $ 181 Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows: (in millions) December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating lease $ 35 Operating cash flows from finance leases 9 Financing cash flows from finance leases 22 Right-of-use assets obtained in exchange for lease obligations: Operating leases 151 Finance leases $ 16 Future payments under noncancelable operating leases and finance leases with initial terms of one year or more as of December 31, 2019 consisted of the following: (in millions) Finance leases Operating leases Total leases 2020 $ 26 38 64 2021 25 26 51 2022 25 23 48 2023 25 21 46 2024 23 20 43 Thereafter 108 186 294 Total lease payments 232 314 546 Less: imputed interest (51 ) (96 ) (147 ) Total lease liabilities $ 181 218 399 On July 2, 2015, QVC entered into a lease (the “Lease”) for a California distribution center. Pursuant to the Lease, the landlord built a 1 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 $6 million per year, increasing to $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 initial access to a portion of the ECDC Lease during March 2019 and obtained access to the remaining portion during September 2019. In total, QVC recorded a right of use asset of $141 million and an operating lease liability of $131 million relating to the ECDC Lease, with the difference attributable to prepaid rent. QVC is required to pay an initial base rent of $10 million per year, with payments that began in the third quarter of 2019 and increasing to $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 . |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Disaggregated revenue by segment and product category consisted of the following: Year ended December 31, 2019 Year ended December 31, 2018 (in millions) QxH QVC-International Total QxH QVC-International Total Home $ 3,047 905 3,952 3,175 1,023 4,198 Beauty 1,299 659 1,958 1,326 640 1,966 Apparel 1,289 422 1,711 1,323 453 1,776 Accessories 918 376 1,294 933 273 1,206 Electronics 1,141 107 1,248 1,129 119 1,248 Jewelry 402 226 628 473 213 686 Other revenue 181 14 195 185 17 202 Total net revenue $ 8,277 2,709 10,986 8,544 2,738 11,282 Consumer Product Revenue and Other Revenue QVC's revenue includes sales of consumer products in the following categories; home, beauty, apparel, 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 U.S. PLCC 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 years ended December 31, 2019 and 2018, revenue is recognized when obligations with the Company's customers are satisfied; generally this occurs at the time of shipment to its customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration the Company expects to receive in exchange for transferring goods, net of allowances for returns. The Company generally recognizes revenue related to the PLCC 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 are treated as fulfillment costs. The Company generally has payment terms with its customers of one year or less and elected the practical expedient applicable to such contracts under ASC 606 not to consider the time value of money. In accordance with the new revenue standard requirements adopted as of January 1, 2018, the impact of adoption on our condensed consolidated statements of operations was as follows: Statements of Operations Year ended December 31, 2018 (in millions) As Reported Balances Without Adoption of ASC 606 Effect of Change Increase/(Decrease) Net revenue $ 11,282 11,143 139 Costs and expenses: Cost of goods sold (exclusive of depreciation and amortization) 7,248 7,238 10 Operating 881 879 2 Selling, general and administrative, including transaction related costs and stock-based compensation 1,200 1,082 118 Income tax expense 334 332 2 Net income $ 928 921 7 The effect of changes of adoption is primarily due to the timing of revenue recognition at QVC and the classification of income for the Company's PLCC income. For the years ended December 31, 2019 and 2018, revenue is recognized at the time of shipment to the Company's customers consistent with when control passes and PLCC income is recognized in net revenue. For the year ended December 31, 2017, revenue at QVC was recognized at the time of delivery to the customers and deferred revenue was recorded to account for the shipments in-transit. In addition, PLCC income was recognized as an offset to selling, general and administrative expenses. 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. The total reduction in net revenue due to returns for the years ended December 31, 2019, 2018 and 2017 aggregated to $2,138 million , $2,213 million and $1,811 million , respectively. As a result of the adoption of ASC 606 the Company recognized a separate $116 million asset (included in prepaid expenses and other current assets) related to the expected return of inventory and a $242 million liability (included in accrued liabilities) relating to its sales return reserve as of December 31, 2018, instead of the net presentation of the liability that was reported at December 31, 2017. A summary of activity in the allowance for sales returns, recorded on a gross basis for the years ended December 31, 2019 and 2018 and recorded on a net margin basis for the year ended December 31, 2017, was as follows: (in millions) Balance Additions- Deductions Transfer of HSN reserve Balance 2019 $ 242 2,138 (2,142 ) — 238 2018 243 2,213 (2,214 ) — 242 2017 93 982 (979 ) 23 119 |
Stock Options and Other Share-B
Stock Options and Other Share-Based Awards Stock Options and Other Share- Based Awards | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options and Other Share-Based Payments | Stock Options and Other Share-Based Payments Certain QVC employees and officers have received stock options (the "Options") and restricted shares in Series A Qurate Retail common stock ( “QRTEA”) and Qurate Retail's former Series A Liberty Ventures common stock ("LVNTA") in accordance with the Qurate Retail, Inc. 2000 Incentive Plan, as amended from time to time; the Qurate Retail, Inc. 2007 Incentive Plan, as amended from time to time; the Qurate Retail, Inc. 2010 Incentive Plan, as amended from time to time; the Qurate Retail, Inc. 2012 Incentive Plan, as amended from time to time; and the Qurate Retail, Inc. 2016 Omnibus Incentive Plan, as amended from time to time (collectively, the "Liberty Incentive Plan"). (a) Stock options A summary of the activity of the Liberty Incentive Plan with respect to the QRTEA Options granted to QVC employees and officers as of and during the year ended December 31, 2019 is presented below: Options Weighted Aggregate Weighted average remaining Outstanding as of January 1, 2019 14,653,589 $ 24.46 $ 8,353 4.4 Granted 2,217,707 12.59 Exercised (335,581 ) 16.34 Forfeited (3,491,762 ) 21.35 Outstanding as of December 31, 2019 13,043,953 23.49 N/A 4.0 Exercisable as of December 31, 2019 7,636,365 25.05 N/A 3.2 N/A - Not applicable as the QRTEA share price as of December 31, 2019 is less than that of the lowest exercise price. Upon employee exercise of the Options, the exercise price is remitted to Qurate Retail in exchange for the shares. The aggregate intrinsic value of all Options exercised during the years ended December 31, 2019, 2018 and 2017 was $2 million , $20 million and $32 million , respectively. The weighted average fair value at date of grant of a QRTEA Option granted during the years ended December 31, 2019, 2018 and 2017 was $4.08 , $8.52 and $7.86 , respectively. During the years ended December 31, 2019, 2018 and 2017 , the fair value of each QRTEA Option was determined as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2019 2018 2017 Expected volatility 30.1 % 29.7 % 30.3 % Expected term (years) 5.7 5.2 5.9 Risk free interest rate 2.2 % 2.7 % 2.1 % Expected dividend yield — — — Expected volatility is based on historical and implied volatilities of QRTEA common stock over a period commensurate with the expected term of the options. The Company estimates the expected term of the Options based on historical exercise and forfeiture data. The volatility used in the calculation for the Options is based on the historical volatility of Qurate Retail's stocks and the implied volatility of publicly traded Qurate Retail Options. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject Options. The fair value of the Options is recognized as expense over the requisite service period. During the years ended December 31, 2019, 2018 and 2017 , the Company recorded $22 million , $28 million and $29 million , respectively, of stock-based compensation expense related to the Options. As of December 31, 2019 , the total unrecognized compensation cost related to unvested Options was approximately $28 million . Such amount will be recognized in the Company's consolidated statement of operations over a weighted average period of approximately 2.0 years . (b) Restricted stock plan A summary of the activity of the Liberty Incentive Plan with respect to the QRTEA restricted shares granted to QVC employees and officers as of and during the year ended December 31, 2019 is presented below: Restricted shares Weighted average Outstanding as of January 1, 2019 1,599,293 $ 25.42 Granted 1,844,889 16.83 Vested (598,233 ) 25.95 Forfeited (344,814 ) 21.81 Outstanding as of December 31, 2019 2,501,135 19.45 During the years ended December 31, 2019, 2018 and 2017 , the Company recorded $17 million , $18 million and $10 million , respectively, of stock-based compensation expense related to these shares. As of December 31, 2019 , the total unrecognized compensation cost related to unvested restricted shares of common stock was approximately $31 million . Such amount will be recognized in the Company's consolidated statement of operations over a weighted average period of approximately 2.6 years . Fair value of restricted shares is calculated based on the market price on the day of the granted shares. The weighted average grant date fair value of the QRTEA restricted shares granted to QVC employees and officers during the years ended December 31, 2019, 2018 and 2017 was $16.83 , $26.23 , and $22.49 , respectively. There have been no LVNTA restricted shares granted to QVC employees and officers during the years ended December 31, 2019, 2018 and 2017 . The aggregate fair value of all restricted shares of common stock that vested during the years ended December 31, 2019, 2018 and 2017 was $16 million , $37 million and $10 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes Income tax expense (benefit) consisted of the following: Years ended December 31, (in millions) 2019 2018 2017 Current: U.S. federal $ 141 239 352 State and local 37 37 27 Foreign jurisdictions 93 84 87 Total 271 360 466 Deferred: U.S. federal (11 ) (27 ) (320 ) State and local 3 (2 ) (7 ) Foreign jurisdictions (1 ) 3 — Total (9 ) (26 ) (327 ) Total income tax expense $ 262 334 139 Pre-tax income (loss) was as follows: Years ended December 31, (in millions) 2019 2018 2017 QxH $ 843 1,062 877 QVC-International 236 200 209 Consolidated QVC $ 1,079 1,262 1,086 Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 21% in 2019 and 2018 and 35% in 2017, as a result of the following: Years ended December 31, 2019 2018 2017 Provision at statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.9 2.2 1.0 Foreign taxes 1.0 0.8 — Write-off of investment and notes of foreign subsidiary (3.1 ) — — Valuation allowance 3.2 2.6 1.0 Permanent differences (0.2 ) (0.2 ) (2.2 ) Impact of Tax Cuts and Jobs Act — — (26 ) Investment in subsidiary 0.9 0.6 4.0 Impact of foreign currency tax regulation (0.7 ) (0.6 ) 0.4 Other, net (0.7 ) 0.1 (0.4 ) Total income tax expense 24.3 % 26.5 % 12.8 % The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: December 31, (in millions) 2019 2018 Deferred tax assets: Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts $ 31 29 Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 38 33 Allowance for sales returns 30 31 Deferred revenue 6 15 Deferred compensation 38 39 Unrecognized federal and state tax benefits 13 10 Net operating loss carryforwards 57 49 Foreign tax credits carryforward 43 17 Lease obligations 68 — Accrued liabilities 15 33 Other 8 5 Subtotal 347 261 Valuation allowance (99 ) (64 ) Total deferred tax assets 248 197 Deferred tax liabilities: Depreciation and amortization (823 ) (840 ) Lease assets (66 ) — Cumulative translation of foreign currencies (22 ) (16 ) Investment in subsidiary (26 ) (41 ) Total deferred tax liabilities (937 ) (897 ) Net deferred tax liability $ (689 ) (700 ) In the above table, valuation allowances exist due to the uncertainty of whether or not the benefit of certain U.S. federal and foreign tax credits and losses will ultimately be utilized for income tax purposes. The 2019 net deferred tax liability above includes deferred tax assets of $35 million relating to foreign jurisdictions which are included within other noncurrent assets in the consolidated balance sheet and deferred tax liabilities of $724 million in domestic jurisdictions which are included within deferred income taxes in the consolidated balance sheet. On December 22, 2017, new U.S. federal tax legislation, the Tax Cuts and Jobs Act (the “Act”) was enacted. The new legislation was a significant modification of existing U.S. federal tax law and contained several provisions which impacted the tax position of the Company in 2017, 2018, and 2019, and will impact the Company’s tax position in future years. Changes which became effective in 2017 include the reduction of the federal corporate tax rate from 35% to 21% , the rules related to a one-time tax on unremitted foreign earnings in 2017, and an increase in the bonus depreciation allowance on certain qualified property. In connection with unremitted foreign earnings, the Company performed an evaluation of its earnings and profits of its foreign subsidiaries and determined that deficits in some of the subsidiaries offset the surpluses in others so that no amount was subject to the mandatory repatriation provision of the Act in 2017. Entities are required under ASC 740, Accounting for Income Taxes, to record the effect of the change in the period of enactment and to recognize the change as a discrete item in income tax expense from continuing operations. The Company recorded an income tax benefit of $282 million through operations to reflect the impact of the law changes included in the Act. This non-cash tax benefit was primarily attributed to the remeasurement at the new lower federal tax rate of deferred tax liabilities related to non-current intangible assets. Other provisions of the Act which impact the Company’s tax position and which became effective in 2018 include changes in how foreign earnings are taxed in the U.S., specifically, the participation exemption for certain foreign earnings, the inclusion and related deduction for global intangible low-taxed income (“GILTI”), the limitation on the deduction of net interest expense, the deduction for foreign derived intangible income (“FDII”), and new rules regarding the usage of foreign tax credits in the U.S. Specifically, due to the rules relating to the categorization of income for foreign tax credit purposes, the Company recognized a foreign tax credit carryover in the branch income basket, for which a deferred tax asset and full valuation allowance have been established. The Company is 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. These differences are related primarily to foreign tax credits recognized by QVC that are creditable under the Tax Agreement when and if utilized in Qurate Retail’s consolidated tax return. The difference recorded during the year ended December 31, 2019 was an $11 million dividend which was primarily related to foreign tax credits recognized by QVC and not utilized in Qurate Retail’s tax return during the tax year. The differences recorded during the years ended December 31, 2018, and 2017 were $2 million , and $31 million , respectively, in capital contributions and were primarily related to foreign tax credit carryovers being utilized in Qurate's consolidated tax return in excess of those recognized by QVC during the respective tax years. The amounts of the tax-related (receivable) balance due (from) to Qurate Retail as of December 31, 2019 and 2018 were $(7) million and $26 million , respectively, and are included in accrued liabilities in the consolidated balance sheets. A reconciliation of the 2018 and 2019 beginning and ending amount of the liability for unrecognized tax benefits is as follows: (in millions) Balance at January 1, 2018 $ 53 Increases related to prior year tax positions 1 Decreases related to prior year tax positions (9 ) Decreases related to settlements with taxing authorities — Increases related to current year tax positions 9 Balance at December 31, 2018 54 Increases related to prior year tax positions 9 Decreases related to prior year tax positions (7 ) Decreases related to settlements with taxing authorities (4 ) Increases related to current year tax positions 8 Balance at December 31, 2019 $ 60 Included in the balance of unrecognized tax benefits as of December 31, 2019 are potential benefits of $48 million (net of an $ 12 million federal tax effect) that, if recognized, would affect the effective rate on income from continuing operations. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other (expense) income in the consolidated statements of operations. The Company did not have a material amount of interest accrued related to unrecognized tax benefits or tax penalties for the years ended December 31, 2019, 2018 or 2017. The Company has tax positions for which the amount of related unrecognized tax benefits could change during 2020 . These consist of nonfederal transfer pricing and other tax issues. The amount of unrecognized tax benefits related to these issues could have an impact of $2 million in 2020 as a result of potential settlements, lapsing of statute of limitations and revisions of settlement estimates. The Company participates in a consolidated federal return filing with Qurate Retail. As of December 31, 2019, the Company's tax years through 2015 are closed for federal income tax purposes, and the IRS has completed its examination of the Company's 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 December 31, 2019, certain of the Company’s subsidiaries were under examination in Germany for 2015 through 2017. As of December 31, 2019, the Company, or one of its subsidiaries was under examination in the state of Pennsylvania. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 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. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions During the years ended December 31, 2019, 2018 and 2017 , QVC and Zulily engaged in multiple transactions relating to sales, sourcing of merchandise, marketing initiatives, and business advisory services. QVC allocated expenses of $7 million , $5 million , and $4 million t o Zulily for the years ended December 31, 2019, 2018, and 2017, respectively. Zulily allocated expenses of $9 million , $6 million , and $5 million to QVC for the years ended December 31, 2019, 2018, and 2017, respectively. Additionally, on June 23, 2016, QVC amended and restated its senior secured credit facility by entering into the Third Amended and Restated Credit Agreement adding a tranche that allows joint borrowing capacity for either QVC or Zulily and increasing the revolving credit facility from $2.25 billion to $2.65 billion . QVC subsequently amended and restated its senior secured credit facility by entering into the Fourth Amended and Restated Credit Agreement, increasing the revolving credit facility to $3.65 billion (which was reduced to $2.95 billion , effective February 4, 2020 upon the closing of QVC's offering of the 2027 Notes). See note 8 for more information regarding the revolving credit facility. 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 December 31, 2019 , there was $130 million borrowed by Zulily on the $400 million tranche of the senior secured credit facility, none of which the Company expects to repay on behalf of Zulily. In addition, Zulily had $9 million outstanding in standby letters of credit as of December 31, 2019 . During the years ended December 31, 2019 and 2018, QVC and CBI engaged in multiple transactions relating to personnel and business advisory services. QVC allocated expenses of $28 million and $50 million t o CBI for the years ended December 31, 2019 and 2018, respectively. CBI allocated expenses of $1 million and $5 million to QVC for the years ended December 31, 2019 and 2018, respectively. CBI also repaid a $29 million note receivable to QVC during the year ended December 31, 2019. |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value | 12 Months Ended |
Dec. 31, 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 December 31, 2019 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 272 272 — — Interest rate swap arrangements (note 8) — — — — Long-term liabilities: Debt (note 8) 5,116 760 4,356 — Interest rate swap arrangements (note 8) — — — — 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 8) 5 — 5 — Long-term liabilities: Debt (note 8) 4,758 189 4,569 — The 2067 Notes (ticker: QVCD) and the 2068 Notes (ticker: QVCC) 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 | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment reporting disclosure | Information about QVC's Operating Segments and Geographical Data 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. For segment reporting purposes, the Company defines Adjusted OIBDA, 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, expenses related to the QRG Initiatives (see note 1) and expenses related to the closure of operations in France (collectively, "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. The Company's chief operating decision maker ("CODM") is the Company's Chief Executive Officer who has ultimate responsibility for enterprise decisions. QVC's CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise, QxH, and QVC-International. 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 year ended December 31, 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. QVC allocates certain corporate costs for management reporting purposes from its QxH segment to the QVC-International segment. These management cost allocations are related to certain functions such as merchandising, commerce platforms, information technology, human resources, legal, finance, brand and communications, corporate development and administration that support all of QVC’s operations. For the years ended December 31, 2019, 2018 and 2017 , the costs allocated to QVC-International totaled approximately $27 million , $39 million and $36 million respectively. Performance measures Years ended December 31, 2019 2018 2017 (in millions) Net Adjusted Net Adjusted Net Adjusted QxH $ 8,277 1,536 8,544 1,630 6,140 1,455 QVC-International 2,709 446 2,738 429 2,631 451 Consolidated QVC $ 10,986 1,982 11,282 2,059 8,771 1,906 Other information Years ended December 31, 2019 2018 2017 (in millions) Depreciation Amortization Depreciation Amortization Depreciation Amortization QxH $ 113 269 118 227 93 330 QVC-International 73 13 56 10 62 34 Consolidated QVC $ 186 282 174 237 155 364 Years ended December 31, 2019 2018 (in millions) Total Capital Total Capital QxH $ 12,659 257 12,702 161 QVC-International 2,268 34 2,154 67 Consolidated QVC $ 14,927 291 14,856 228 Property and equipment, net of accumulated depreciation, by segment were as follows: December 31, (in millions) 2019 2018 QxH $ 800 712 QVC-International 415 453 Consolidated QVC $ 1,215 1,165 The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: Years ended December 31, (in millions) 2019 2018 2017 Adjusted OIBDA $ 1,982 2,059 1,906 Impairment loss (147 ) (30 ) — Transaction related costs (1 ) (60 ) (39 ) Stock-based compensation (39 ) (46 ) (39 ) Depreciation and amortization (468 ) (411 ) (519 ) Operating Income 1,327 1,512 1,309 Equity in losses of investee — (3 ) (3 ) Losses on financial instruments (5 ) (2 ) — Interest expense, net (240 ) (243 ) (214 ) Foreign currency loss (3 ) — (6 ) Loss on extinguishment of debt — (2 ) — Income before income taxes $ 1,079 1,262 1,086 The following table summarizes net revenues based on revenues generated by subsidiaries located within the identified geographic area: Years ended December 31, (in millions) 2019 2018 2017 United States $ 8,277 8,544 6,140 Japan 1,028 947 934 Germany 890 943 899 United Kingdom 640 679 640 Other countries 151 169 158 Consolidated QVC $ 10,986 11,282 8,771 The following table summarizes property and equipment, net of accumulated depreciation, based on physical location: December 31, (in millions) 2019 2018 United States $ 800 712 Germany 154 161 Japan 153 165 United Kingdom 75 77 Other countries 33 50 Consolidated QVC $ 1,215 1,165 |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive (Loss) Income | Other Comprehensive (Loss) 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 as of January 1, 2017 $ (224 ) (224 ) Other comprehensive income attributable to QVC, Inc. stockholder 131 131 Balance as of December 31, 2017 (93 ) (93 ) Other comprehensive loss attributable to QVC, Inc. stockholder (51 ) (51 ) Balance as of December 31, 2018 (144 ) (144 ) Other comprehensive income attributable to QVC, Inc. stockholder — — Balance as of December 31, 2019 $ (144 ) (144 ) The component of other comprehensive income (loss) is reflected in QVC's consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive income: (in millions) Before-tax amount Tax benefit (expense) Net-of-tax amount Year ended December 31, 2019: Foreign currency translation adjustments $ — 1 1 Other comprehensive income — 1 1 Year ended December 31, 2018: Foreign currency translation adjustments $ (49 ) 1 (48 ) Other comprehensive loss (49 ) 1 (48 ) Year ended December 31, 2017: Foreign currency translation adjustments $ 156 (21 ) 135 Other comprehensive income 156 (21 ) 135 |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans In certain countries, QVC sponsors defined contribution plans, which provide employees an opportunity to make contributions to a trust for investment in a variety of securities. Generally, the Company makes matching contributions to the plans based on a percentage of the amount contributed by employees. The Company's cash contributions to the plans were $21 million , $22 million and $18 million for the years ended December 31, 2019, 2018 and 2017 , respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In addition to the events described in note 8, QVC declared and paid dividends to Qurate Retail in the amount of $122 million from January 1, 2020 to February 26, 2020. As of February 26, 2020, Zulily had $175 million outstanding on the shared tranche within the Fourth Amended and Restated Credit Agreement. |
Guarantor_Non-Guarantor Subsidi
Guarantor/Non-Guarantor Subsidiary Financial Information | 12 Months Ended |
Dec. 31, 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 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 8) 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 on which HSN became a subsidiary of QVC through a common control transaction with Qurate Retail. These consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the Company's consolidated financial statements. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, such as management fees, royalty revenue and expense, interest income and expense and gains on intercompany asset transfers. 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 consolidated financial statements. Condensed Consolidating Balance Sheets December 31, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Assets Current assets: Cash and cash equivalents $ 37 192 332 — 561 Restricted cash 5 — 3 — 8 Accounts receivable, net 1,169 300 344 — 1,813 Inventories 711 258 245 — 1,214 Prepaid expenses and other current assets 105 32 47 — 184 Total current assets 2,027 782 971 — 3,780 Property and equipment, net 264 245 706 — 1,215 Operating lease right-of-use assets 2 15 197 — 214 Television distribution rights, net — 139 1 — 140 Goodwill 4,190 922 859 — 5,971 Other intangible assets, net 560 2,909 29 — 3,498 Other noncurrent assets 18 12 79 — 109 Investments in subsidiaries 5,747 932 — (6,679 ) — Total assets $ 12,808 5,956 2,842 (6,679 ) 14,927 Liabilities and equity Current liabilities: Current portion of debt and finance lease obligations $ 2 1 15 — 18 Accounts payable-trade 477 181 255 — 913 Accrued liabilities 311 402 332 — 1,045 Intercompany accounts payable (receivable) 181 (1,356 ) 1,175 — — Total current liabilities 971 (772 ) 1,777 — 1,976 Long-term portion of debt and finance lease obligations 4,945 5 151 — 5,101 Deferred income taxes 98 653 (27 ) — 724 Other long-term liabilities 120 16 186 — 322 Total liabilities 6,134 (98 ) 2,087 — 8,123 Equity: QVC, Inc. stockholder's equity 6,674 6,054 625 (6,679 ) 6,674 Noncontrolling interest — — 130 — 130 Total equity 6,674 6,054 755 (6,679 ) 6,804 Total liabilities and equity $ 12,808 5,956 2,842 (6,679 ) 14,927 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 Consolidating Statements of Operations Year ended December 31, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 6,236 3,094 2,938 (1,282 ) 10,986 Operating costs and expenses: Cost of goods sold (exclusive of depreciation and amortization shown separately below) 3,879 1,593 1,826 (150 ) 7,148 Operating 441 416 279 (368 ) 768 Selling, general and administrative, including transaction related costs and stock-based compensation 1,225 215 452 (764 ) 1,128 Depreciation 63 35 88 — 186 Amortization 71 199 12 — 282 Impairment loss — 147 — — 147 5,679 2,605 2,657 (1,282 ) 9,659 Operating income 557 489 281 — 1,327 Other (expense) income: Losses on financial instruments (5 ) — — — (5 ) Interest (expense) income, net (236 ) 4 (8 ) — (240 ) Foreign currency loss (1 ) — (2 ) — (3 ) Intercompany interest income (expense) 28 40 (68 ) — — (214 ) 44 (78 ) — (248 ) Income before income taxes 343 533 203 — 1,079 Income tax expense (102 ) (68 ) (92 ) — (262 ) Equity in earnings of subsidiaries, net of tax 576 37 — (613 ) — Net income 817 502 111 (613 ) 817 Less net income attributable to the noncontrolling interest (50 ) — (50 ) 50 (50 ) Net income attributable to QVC, Inc. stockholder $ 767 502 61 (563 ) 767 Consolidating Statements of Operations Year ended December 31, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 6,502 3,185 2,964 (1,369 ) 11,282 Operating costs and expenses: Cost of goods sold (exclusive of depreciation and amortization shown separately below) 3,979 1,617 1,832 (180 ) 7,248 Operating 442 533 288 (382 ) 881 Selling, general and administrative, including transaction related costs and stock-based compensation 1,252 282 473 (807 ) 1,200 Depreciation 65 37 72 — 174 Amortization 79 147 11 — 237 Impairment loss — 30 — — 30 5,817 2,646 2,676 (1,369 ) 9,770 Operating income 685 539 288 — 1,512 Other (expense) income: Equity in losses of investee — — (3 ) — (3 ) Losses on financial instruments (1 ) (1 ) — — (2 ) Interest expense, net (223 ) (15 ) (5 ) — (243 ) Foreign currency gain (loss) 2 — (2 ) — — Loss on extinguishment of debt — (2 ) — — (2 ) Intercompany interest (expense) income (34 ) 151 (117 ) — — (256 ) 133 (127 ) — (250 ) Income before income taxes 429 672 161 — 1,262 Income tax expense (127 ) (121 ) (86 ) — (334 ) Equity in earnings of subsidiaries, net of tax 626 50 — (676 ) — Net income 928 601 75 (676 ) 928 Less net income attributable to the noncontrolling interest (46 ) — (46 ) 46 (46 ) Net income attributable to QVC, Inc. stockholder $ 882 601 29 (630 ) 882 Consolidating Statements of Operations Year ended December 31, 2017 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 6,298 1,000 2,848 (1,375 ) 8,771 Operating costs and expenses: Cost of goods sold (exclusive of depreciation and amortization shown separately below) 3,877 157 1,744 (180 ) 5,598 Operating 433 265 277 (374 ) 601 Selling, general and administrative, including transaction related costs and stock-based compensation 1,097 40 428 (821 ) 744 Depreciation 67 7 81 — 155 Amortization 187 142 35 — 364 5,661 611 2,565 (1,375 ) 7,462 Operating income 637 389 283 — 1,309 Other (expense) income: Equity in losses of investee — — (3 ) — (3 ) Interest (expense) income, net (215 ) 1 — — (214 ) Foreign currency (loss) gain (5 ) 1 (2 ) — (6 ) Intercompany interest (expense) income (12 ) 96 (84 ) — — (232 ) 98 (89 ) — (223 ) Income before income taxes 405 487 194 — 1,086 Income tax (expense) benefit (129 ) 93 (103 ) — (139 ) Equity in earnings of subsidiaries, net of tax 671 47 — (718 ) — Net income 947 627 91 (718 ) 947 Less net income attributable to the noncontrolling interest (46 ) — (46 ) 46 (46 ) Net income attributable to QVC, Inc. stockholder $ 901 627 45 (672 ) 901 Consolidating Statements of Comprehensive Income Year ended December 31, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 817 502 111 (613 ) 817 Foreign currency translation adjustments, net of tax 1 — 2 (2 ) 1 Total comprehensive income 818 502 113 (615 ) 818 Comprehensive income attributable to noncontrolling interest (51 ) — (51 ) 51 (51 ) Comprehensive income attributable to QVC, Inc. stockholder $ 767 502 62 (564 ) 767 Consolidating Statements of Comprehensive Income Year ended December 31, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 928 601 75 (676 ) 928 Foreign currency translation adjustments, net of tax (48 ) — (48 ) 48 (48 ) Total comprehensive income 880 601 27 (628 ) 880 Comprehensive income attributable to noncontrolling interest (49 ) — (49 ) 49 (49 ) Comprehensive income attributable to QVC, Inc. stockholder $ 831 601 (22 ) (579 ) 831 Consolidating Statements of Comprehensive Income Year ended December 31, 2017 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 947 627 91 (718 ) 947 Foreign currency translation adjustments, net of tax 135 — 135 (135 ) 135 Total comprehensive income 1,082 627 226 (853 ) 1,082 Comprehensive income attributable to noncontrolling interest (50 ) — (50 ) 50 (50 ) Comprehensive income attributable to QVC, Inc. stockholder $ 1,032 627 176 (803 ) 1,032 Condensed Consolidating Statements of Cash Flows Year ended December 31, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Operating activities: Net cash provided by operating activities $ 368 836 118 — 1,322 Investing activities: Capital expenditures (127 ) (65 ) (99 ) — (291 ) Expenditures for television distribution rights — (134 ) — — (134 ) Changes in other noncurrent assets (11 ) (2 ) 2 — (11 ) Other investing activities — 29 — — 29 Intercompany investing activities 319 (999 ) — 680 — Net cash provided by (used in) investing activities 181 (1,171 ) (97 ) 680 (407 ) Financing activities: Principal payments of debt and finance lease obligations (2,586 ) — (13 ) — (2,599 ) Principal borrowings of debt from senior secured credit facility 2,496 — — — 2,496 Principal repayment of senior secured notes (400 ) — — — (400 ) Proceeds from issuance of senior secured notes 500 — — — 500 Payment of debt origination fees (18 ) — — — (18 ) Capital contributions received from Qurate Retail, Inc. 50 — — — 50 Dividends paid to Qurate Retail Inc. (877 ) (2 ) — — (879 ) Dividends paid to noncontrolling interest — — (40 ) — (40 ) Other financing activities (4 ) — — — (4 ) Net short-term intercompany debt borrowings (repayments) 276 (341 ) 65 — — Other intercompany financing activities (22 ) 678 24 (680 ) — Net cash (used in) provided by financing activities (585 ) 335 36 (680 ) (894 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — — (2 ) — (2 ) Net (decrease) increase in cash, cash equivalents and restricted cash (36 ) — 55 — 19 Cash, cash equivalents and restricted cash, beginning of period 78 192 280 — 550 Cash, cash equivalents and restricted cash, end of period $ 42 192 335 — 569 Condensed Consolidating Statements of Cash Flows Year ended December 31, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Operating activities: Net cash provided by operating activities $ 461 592 103 — 1,156 Investing activities: Capital expenditures (121 ) (19 ) (88 ) — (228 ) Expenditures for television distribution rights — (139 ) (1 ) — (140 ) Changes in other noncurrent assets 1 (4 ) (13 ) — (16 ) Other investing activities — (29 ) — — (29 ) Intercompany investing activities 433 (688 ) — 255 — Net cash provided by (used in) investing activities 313 (879 ) (102 ) 255 (413 ) Financing activities: Principal payments of debt and capital lease obligations (2,680 ) (851 ) (10 ) — (3,541 ) Principal borrowings of debt from senior secured credit facility 2,362 388 — — 2,750 Proceeds from issuance of senior secured notes 225 — — — 225 Payment of debt origination fees (14 ) — — — (14 ) Capital contributions received from Qurate Retail, Inc. 340 180 — — 520 Dividends paid to Qurate Retail, Inc. (367 ) — — — (367 ) Dividends paid to noncontrolling interest — — (40 ) — (40 ) Other financing activities (10 ) (8 ) — — (18 ) Net short-term intercompany debt (repayments) borrowings (548 ) 498 50 — — Other intercompany financing activities (11 ) 217 49 (255 ) — Net cash (used in) provided by financing activities (703 ) 424 49 (255 ) (485 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — — 2 — 2 Net increase in cash, cash equivalents and restricted cash 71 137 52 — 260 Cash, cash equivalents and restricted cash, beginning of period 7 55 228 — 290 Cash, cash equivalents and restricted cash, end of period $ 78 192 280 — 550 Condensed Consolidating Statements of Cash Flows Year ended December 31, 2017 (in millions) Parent Combined Combined Eliminations Consolidated- Operating activities: Net cash provided by operating activities $ 641 507 54 — 1,202 Investing activities: Capital expenditures (103 ) (4 ) (45 ) — (152 ) Expenditures for television distribution rights — (50 ) — — (50 ) Changes in other noncurrent assets (1 ) — — — (1 ) Intercompany investing activities 545 (1,507 ) — 962 — Common control transaction with Qurate Retail, Inc., net of cash received — 22 — — 22 Net cash provided by (used in) investing activities 441 (1,539 ) (45 ) 962 (181 ) Financing activities: Principal payments of debt and capital lease obligations (2,268 ) — (10 ) — (2,278 ) Principal borrowings of debt from senior secured credit facility 2,162 — — — 2,162 Dividends paid to Qurate Retail, Inc. (866 ) — — — (866 ) Dividends paid to noncontrolling interest — — (40 ) — (40 ) Other financing activities (16 ) — — — (16 ) Net short-term intercompany debt (repayments) borrowings (170 ) (1,267 ) 1,437 — — Other intercompany financing activities 73 2,257 (1,368 ) (962 ) — Net cash (used in) provided by financing activities (1,085 ) 990 19 (962 ) (1,038 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — — 13 — 13 Net (decrease) increase in cash, cash equivalents and restricted cash (3 ) (42 ) 41 — (4 ) Cash, cash equivalents and restricted cash, beginning of period 10 97 187 — 294 Cash, cash equivalents and restricted cash, end of period $ 7 55 228 — 290 |
Quarterly Financial Information
Quarterly Financial Information (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly Financial Information (Unaudited) Year ended December 31, 2019 (in millions) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net revenue $ 2,501 2,514 2,504 3,467 Operating income $ 326 365 330 306 Net income $ 186 218 188 225 Net income attributable to QVC, Inc. stockholder $ 176 206 174 211 Year ended December 31, 2018 (in millions) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net revenue $ 2,602 2,556 2,569 3,555 Operating income $ 356 390 305 461 Net income $ 212 244 181 291 Net income attributable to QVC, Inc. stockholder $ 201 233 170 278 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Cash and cash equivalents policy | (a) Cash and cash equivalents All highly liquid investments purchased with an original maturity of three months or less are classified as cash equivalents. Cash equivalents were $272 million and $267 million at December 31, 2019 and 2018 , respectively. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate their fair values (Level 1). |
Restricted cash policy | (b) Restricted cash Restricted cash at December 31, 2019 and 2018 primarily includes a cash deposit with a third party trustee that provides financial assurance that the Company will fulfill its obligations in relation to claims under its workers' compensation policy. |
Receivables policy | (c) Accounts receivable A provision for customer bad debts is provided as a percentage of accounts receivable based on historical experience in the period of sale and is included within selling, general and administrative expense. A provision for noncustomer bad debt expense, related to amounts due from vendors for unsold and returned products, is provided based on an estimate of the probable expected losses and is included in cost of goods sold. |
Inventory policy | (d) Inventories Inventories, consisting primarily of products held for sale, are stated at the lower of cost or net realizable value. Cost is determined by the average cost method, which approximates the first-in, first-out method. Assessments about the realizability of inventory require the Company to make judgments based on currently available information about the likely method of disposition including sales to individual customers, returns to product vendors, liquidations and the estimated recoverable values of each disposition category. |
Property and equipment policy | (e) Property and equipment The costs of property and equipment are capitalized and depreciated over their estimated useful lives using the straight-line method beginning in the month of acquisition or in-service date. Finance leases are stated at the present value of minimum lease payments. When assets are sold or retired, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in net income. The costs of maintenance and repairs are charged to expense as incurred. |
Interest capitalization policy | (f) Capitalized interest The Company capitalizes interest cost incurred on debt during the construction of major projects exceeding one year. Capitalized interest was not material to the consolidated financial statements for any periods presented. |
Internal use software policy | (g) Internally developed software Internal software development costs are capitalized in accordance with guidance on accounting for the costs of computer software developed or obtained for internal use, and are classified within other intangible assets in the consolidated balance sheets. The Company amortizes computer software and internal software development costs over an estimated useful life of approximately three years using the straight-line method. |
Goodwill Disclosure [Text Block] | (h) Goodwill and Intangible Assets Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment upon certain triggering events. Goodwill and other intangible assets with indefinite useful lives ("indefinite-lived intangible assets") are not amortized, but instead are tested for impairment at least annually. Our annual impairment assessment of our indefinite-lived intangible assets is performed during the fourth quarter of each year and more frequently if events and circumstances indicated that the asset might be impaired. QVC utilizes a qualitative assessment for determining whether step one of the goodwill impairment analysis is necessary. The accounting guidance permits entities to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform step one of the goodwill impairment test. In evaluating goodwill on a qualitative basis, QVC reviews the business performance of each reporting unit and evaluates other relevant factors as identified in the relevant accounting guidance to determine whether it is more likely than not that an indicated impairment exists for any of its reporting units. A reporting unit is defined in accounting guidance in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP" or "GAAP") as an operating segment or one level below an operating segment (also known as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. The Company considers QVC's reporting units to align with its operating segments. Refer to Note 16 for additional information. The Company considers whether there were any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges and the legal environments, and how these factors might impact country specific performance in future periods. If a step one test is considered necessary based on the qualitative factors, the Company compares the estimated fair value of a reporting unit to its carrying value. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company's valuation analysis are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. Any excess of the carrying value of the reporting unit over the fair value is recorded as an impairment charge. QVC also utilizes a qualitative assessment to evaluate the risk of impairment of indefinite-lived intangible assets. The accounting guidance permits entities to first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If deemed necessary based on qualitative factors, a quantitative test is used to determine if the carrying value of an indefinite-lived intangible asset exceeds its fair value. An impairment loss would be recognized to the extent that the carrying amount exceeded the asset's fair value in accordance with Accounting Standards Codification ("ASC") 350. Refer to note 6 for additional information. QVC utilizes a qualitative assessment for determining whether step one of the goodwill impairment analysis is necessary. If a step one test is considered necessary based on the qualitative factors, the Company compares the estimated fair value of a reporting unit to its carrying value. Any excess of the carrying value of the reporting unit over the fair value is recorded as an impairment charge. The Company considers QVC's reporting units to align with its operating segments. The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 were as follows: (in millions) QxH QVC-International Total Balance as of December 31, 2017 $ 5,094 885 5,979 Purchase accounting adjustments (1) 18 — 18 Exchange rate fluctuations — (25 ) (25 ) Balance as of December 31, 2018 5,112 860 5,972 Exchange rate fluctuations — (1 ) (1 ) Balance as of December 31, 2019 $ 5,112 859 5,971 |
Foreign currency transactions and translations policy | (i) Translation of foreign currencies Assets and liabilities of foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustments, net of applicable income taxes, are recorded as a component of accumulated other comprehensive loss in equity. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in the consolidated statements of operations as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions |
Revenue recognition policy | (j) Revenue recognition For the years ended December 31, 2019 and 2018, the Company recognizes revenue at the time of shipment to customers. As a result of the adoption of ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), as of January 1, 2018, the revenue for shipments in transit is no longer recorded as deferred revenue. For the year ended December 31, 2017, the revenue for shipments in-transit was recorded as deferred revenue. The Company's general policy is to allow customers the right to return merchandise. An allowance for returned merchandise is provided at the time revenue is recorded as a percentage of sales based on historical experience. Refer to note 10 for further explanation. Revenue Recognition For the years ended December 31, 2019 and 2018, revenue is recognized when obligations with the Company's customers are satisfied; generally this occurs at the time of shipment to its customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration the Company expects to receive in exchange for transferring goods, net of allowances for returns. The Company generally recognizes revenue related to the PLCC 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 are treated as fulfillment costs. The Company generally has payment terms with its customers of one year or less and elected the practical expedient applicable to such contracts under ASC 606 not to consider the time value of money. In accordance with the new revenue standard requirements adopted as of January 1, 2018, the impact of adoption on our condensed consolidated statements of operations was as follows: Statements of Operations Year ended December 31, 2018 (in millions) As Reported Balances Without Adoption of ASC 606 Effect of Change Increase/(Decrease) Net revenue $ 11,282 11,143 139 Costs and expenses: Cost of goods sold (exclusive of depreciation and amortization) 7,248 7,238 10 Operating 881 879 2 Selling, general and administrative, including transaction related costs and stock-based compensation 1,200 1,082 118 Income tax expense 334 332 2 Net income $ 928 921 7 The effect of changes of adoption is primarily due to the timing of revenue recognition at QVC and the classification of income for the Company's PLCC income. For the years ended December 31, 2019 and 2018, revenue is recognized at the time of shipment to the Company's customers consistent with when control passes and PLCC income is recognized in net revenue. For the year ended December 31, 2017, revenue at QVC was recognized at the time of delivery to the customers and deferred revenue was recorded to account for the shipments in-transit. In addition, PLCC income was recognized as an offset to selling, general and administrative expenses. 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. The total reduction in net revenue due to returns for the years ended December 31, 2019, 2018 and 2017 aggregated to $2,138 million , $2,213 million and $1,811 million , respectively. As a result of the adoption of ASC 606 the Company recognized a separate $116 million asset (included in prepaid expenses and other current assets) related to the expected return of inventory and a $242 million liability (included in accrued liabilities) relating to its sales return reserve as of December 31, 2018, instead of the net presentation of the liability that was reported at December 31, 2017. A summary of activity in the allowance for sales returns, recorded on a gross basis for the years ended December 31, 2019 and 2018 and recorded on a net margin basis for the year ended December 31, 2017, was as follows: (in millions) Balance Additions- Deductions Transfer of HSN reserve Balance 2019 $ 242 2,138 (2,142 ) — 238 2018 243 2,213 (2,214 ) — 242 2017 93 982 (979 ) 23 119 |
Cost of sales policy | (k) Cost of goods sold Cost of goods sold primarily includes actual product cost, provision for obsolete inventory, buying allowances received from suppliers, shipping and handling costs and warehouse costs. |
Advertising cost policy | (l) Advertising costs Advertising costs are expensed as incurred. Advertising costs amounted to $153 million , $138 million and $86 million for the years ended December 31, 2019, 2018 and 2017 , respectively. These costs were included in selling, general and administrative expenses in the consolidated statements of operations. |
Share-based compensation policy | (m) Stock-based compensation As described in note 11, the Company and Qurate Retail have granted certain stock-based awards to employees of the Company. The Company measures the cost of employee services received in exchange for an award of equity instruments (such as stock options and restricted stock) based on the grant-date fair value of the award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the award). Stock-based compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations. |
Impairment of long-lived assets policy | (n) Impairment of long-lived assets The Company reviews long-lived assets, such as property and equipment, internally developed software and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Impairment charges are recognized as an acceleration of depreciation expense or amortization expense in the consolidated statements of operations. |
Derivatives policy | (o) Derivatives The Company accounts for derivatives and hedging activities in accordance with standards issued by the Financial Accounting Standards Board ("FASB"), which requires that all derivative instruments be recorded on the balance sheet at their respective fair values. Fair value is based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. For derivatives designated as hedges, changes in the fair value are either offset against the changes in fair value of the designated hedged item through earnings or recognized in accumulated other comprehensive loss until the hedged item is recognized in earnings. The Company generally enters into derivative contracts that it intends to designate as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive loss to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. The ineffective portion of the change in fair value of a derivative instrument that qualifies as a cash flow hedge is reported in earnings. |
Income tax policy | (p) Income taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in income in the period that includes the enactment date. When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other (expense) income in the consolidated statements of operations. |
Consolidation policy | (q) Noncontrolling interest The Company reports the noncontrolling interest of QVC-Japan within equity in the consolidated balance sheets and the amount of consolidated net income attributable to the noncontrolling interest is presented in the consolidated statements of operations. |
Equity method investments policy | (t) Investment in affiliate The Company holds an investment in China that is accounted for using the equity method. The equity method of accounting is used when the Company exercises significant influence, but does not have operating control, generally assumed to be 20%-50% ownership. Under the equity method, original investments are recorded at cost and adjusted by their share of undistributed earnings or losses of these companies. The excess of the Company's cost on its underlying interest in the net assets of the affiliate is allocated to identifiable intangible assets and goodwill. Equity investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. On July 4, 2012, the Company entered into a joint venture with CNR for a 49% interest in CNRS. The CNRS joint venture is accounted for as an equity method investment as a component of other noncurrent assets on the consolidated balance sheets and equity in losses of investee in the consolidated statements of operations. CNRS operates a retailing business in China through a televised shopping channel with an associated website. CNRS is headquartered in Beijing, China. As of December 31, 2019 and 2018, the investment in CNRS is $40 million and $38 million and is classified within other noncurrent assets on the consolidated balance sheets. |
Use of estimates policy | (u) Use of estimates in the preparation of consolidated financial statements The preparation of consolidated 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, medical and other benefit related costs, depreciable lives of fixed assets, internally developed software, valuation of acquired intangible assets and goodwill, income taxes and stock-based compensation. |
New accounting pronouncements policy | (u) Recent accounting pronouncements Adoption of new accounting pronouncements In February 2016 and subsequently, the FASB issued new guidance which revises the accounting related to lessee accounting as part of ASC Topic 842, Leases ("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 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. Accounting pronouncements issued but not yet adopted 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 Company will adopt this new standard as of January 1, 2020 and does not expect it to have a material impact on its consolidated financial statements. |
Revenue (Policies)
Revenue (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [Abstract] | |
Revenue recognition policy | (j) Revenue recognition For the years ended December 31, 2019 and 2018, the Company recognizes revenue at the time of shipment to customers. As a result of the adoption of ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), as of January 1, 2018, the revenue for shipments in transit is no longer recorded as deferred revenue. For the year ended December 31, 2017, the revenue for shipments in-transit was recorded as deferred revenue. The Company's general policy is to allow customers the right to return merchandise. An allowance for returned merchandise is provided at the time revenue is recorded as a percentage of sales based on historical experience. Refer to note 10 for further explanation. Revenue Recognition For the years ended December 31, 2019 and 2018, revenue is recognized when obligations with the Company's customers are satisfied; generally this occurs at the time of shipment to its customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration the Company expects to receive in exchange for transferring goods, net of allowances for returns. The Company generally recognizes revenue related to the PLCC 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 are treated as fulfillment costs. The Company generally has payment terms with its customers of one year or less and elected the practical expedient applicable to such contracts under ASC 606 not to consider the time value of money. In accordance with the new revenue standard requirements adopted as of January 1, 2018, the impact of adoption on our condensed consolidated statements of operations was as follows: Statements of Operations Year ended December 31, 2018 (in millions) As Reported Balances Without Adoption of ASC 606 Effect of Change Increase/(Decrease) Net revenue $ 11,282 11,143 139 Costs and expenses: Cost of goods sold (exclusive of depreciation and amortization) 7,248 7,238 10 Operating 881 879 2 Selling, general and administrative, including transaction related costs and stock-based compensation 1,200 1,082 118 Income tax expense 334 332 2 Net income $ 928 921 7 The effect of changes of adoption is primarily due to the timing of revenue recognition at QVC and the classification of income for the Company's PLCC income. For the years ended December 31, 2019 and 2018, revenue is recognized at the time of shipment to the Company's customers consistent with when control passes and PLCC income is recognized in net revenue. For the year ended December 31, 2017, revenue at QVC was recognized at the time of delivery to the customers and deferred revenue was recorded to account for the shipments in-transit. In addition, PLCC income was recognized as an offset to selling, general and administrative expenses. 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. The total reduction in net revenue due to returns for the years ended December 31, 2019, 2018 and 2017 aggregated to $2,138 million , $2,213 million and $1,811 million , respectively. As a result of the adoption of ASC 606 the Company recognized a separate $116 million asset (included in prepaid expenses and other current assets) related to the expected return of inventory and a $242 million liability (included in accrued liabilities) relating to its sales return reserve as of December 31, 2018, instead of the net presentation of the liability that was reported at December 31, 2017. A summary of activity in the allowance for sales returns, recorded on a gross basis for the years ended December 31, 2019 and 2018 and recorded on a net margin basis for the year ended December 31, 2017, was as follows: (in millions) Balance Additions- Deductions Transfer of HSN reserve Balance 2019 $ 242 2,138 (2,142 ) — 238 2018 243 2,213 (2,214 ) — 242 2017 93 982 (979 ) 23 119 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Common control transaction (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | As a result of the common control transaction with Qurate Retail (see note 1), QVC received the following assets and liabilities as of December 29, 2017 through a capital contribution, which reflected the initial purchase price allocation for HSN by Qurate Retail (in millions): Cash and cash equivalents $ 22 Accounts receivable 292 Inventory 185 Property and equipment 165 Goodwill 904 Other intangible assets 1,165 Other assets 37 Accounts payable-trade and accrued liabilities (366 ) Long-term portion of debt (460 ) Deferred income taxes (263 ) Other long-term liabilities (10 ) Capital contribution from Qurate Retail, Inc. $ 1,671 |
Business Acquisition, Pro Forma Information [Table Text Block] | The unaudited pro forma net revenue and income before income taxes of QVC, prepared utilizing the historical financial statements of HSN, giving effect to purchase accounting related adjustments made at the time of acquisition, as if the transaction discussed above occurred on January 1, 2016, are $11,114 million and $1,163 million respectively for 2017. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | In accordance with the new revenue standard requirements adopted as of January 1, 2018, the impact of adoption on our condensed consolidated statements of operations was as follows: Statements of Operations Year ended December 31, 2018 (in millions) As Reported Balances Without Adoption of ASC 606 Effect of Change Increase/(Decrease) Net revenue $ 11,282 11,143 139 Costs and expenses: Cost of goods sold (exclusive of depreciation and amortization) 7,248 7,238 10 Operating 881 879 2 Selling, general and administrative, including transaction related costs and stock-based compensation 1,200 1,082 118 Income tax expense 334 332 2 Net income $ 928 921 7 |
Summary of activity in allowance for sales returns | A summary of activity in the allowance for sales returns, recorded on a gross basis for the years ended December 31, 2019 and 2018 and recorded on a net margin basis for the year ended December 31, 2017, was as follows: (in millions) Balance Additions- Deductions Transfer of HSN reserve Balance 2019 $ 242 2,138 (2,142 ) — 238 2018 243 2,213 (2,214 ) — 242 2017 93 982 (979 ) 23 119 |
Accounts Receivable Accounts _2
Accounts Receivable Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable [Abstract] | |
Schedule of accounts receivable | Accounts receivable consisted of the following: December 31, (in millions) 2019 2018 Installment payment option $ 1,586 1,533 Major credit cards and customers 247 269 Other receivables 103 97 1,936 1,899 Less allowance for doubtful accounts (123 ) (112 ) Accounts receivable, net $ 1,813 1,787 |
Summary of activity in the allowance for doubtful accounts | A summary of activity in the allowance for doubtful accounts was as follows: (in millions) Balance Additions- Deductions- Balance 2019 $ 112 124 (113 ) 123 2018 91 112 (91 ) 112 2017 97 72 (78 ) 91 |
Property and Equipment, Net P_2
Property and Equipment, Net Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule Property, Plant and Equipment, net | Property and equipment consisted of the following: December 31, Estimated (in millions) 2019 2018 life Land $ 128 128 N/A Buildings and improvements 1,169 1,174 3 - 39 years Furniture and other equipment 586 543 2 -10 years Broadcast equipment 140 179 2 - 6 years Computer equipment 187 186 2 - 5 years Transponders and terrestrial transmitter (note 9) 177 178 3 - 15 years Projects in progress 166 58 N/A Property and equipment 2,553 2,446 Less: accumulated depreciation (1,338 ) (1,281 ) Property and equipment, net $ 1,215 1,165 |
Television Distribution Right_2
Television Distribution Rights, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Television Distribution Rights [Abstract] | |
Schedule of television distribution rights | Television Distribution Rights, Net Television distribution rights consisted of the following: December 31, (in millions) 2019 2018 Television distribution rights $ 764 723 Less accumulated amortization (624 ) (583 ) Television distribution rights, net $ 140 140 The Company enters into affiliation agreements with television providers for carriage of the Company's shopping service, as well as for certain channel placement. If these television providers were to change the number of subscribers to the agreement through acquisition, it may change the amount paid by the Company. The Company's ability to continue to sell products to its customers is dependent on its ability to maintain and renew these affiliation agreements. In some cases, renewals are not agreed upon prior to the expiration of a given agreement while the programming continues to be carried by the relevant distributor without an effective agreement in place. The Company does not have distribution agreements with some of the cable operators that carry its programming. Television distribution rights are amortized using the straight-line method over the lives of the individual agreements. The remaining weighted average lives of the television distribution rights was approximately 1.3 years as of December 31, 2019 . Amortization expense for television distribution rights was $133 million , $77 million and $157 million for the years ended December 31, 2019, 2018 and 2017 , respectively. As of December 31, 2019 , related amortization expense for each of the next five years ending December 31 was as follows (in millions): 2020 $ 120 2021 17 2022 3 2023 — 2024 — In return for carrying QVC's signals, each programming distributor in the U.S. receives an allocated portion, based upon market share, of up to 5% of the net sales of merchandise sold via the television programs and from certain internet sales to customers located in the programming distributors' service areas. In Germany, Japan, the U.K., and Italy, programming distributors predominately receive an agreed-upon annual fee, a monthly fee per subscriber regardless of the net sales, a variable percentage of net sales or some combination of the above arrangements. The Company recorded expense related to these commissions of $350 million , $363 million and $298 million for the years ended December 31, 2019, 2018 and 2017, respectively, which is included as part of operating expenses in the consolidated statements of operations. Television distribution rights consisted of the following: December 31, (in millions) 2019 2018 Television distribution rights $ 764 723 Less accumulated amortization (624 ) (583 ) Television distribution rights, net $ 140 140 |
Schedule of expected amortization expense | As of December 31, 2019 , related amortization expense for each of the next five years ending December 31 was as follows (in millions): 2020 $ 120 2021 17 2022 3 2023 — 2024 — |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill [Line Items] | |
Schedule of acquired intangible assets by class | Other intangible assets consisted of the following: December 31, 2019 2018 Weighted average remaining life (years) (in millions) Gross Accumulated Other intangible assets, net Gross Accumulated Other intangible assets, net Purchased and internally developed software $ 885 (603 ) 282 890 (640 ) 250 3 Affiliate and customer relationships 2,829 (2,499 ) 330 2,831 (2,450 ) 381 7 Debt origination fees 10 (2 ) 8 10 — 10 4 Tradenames (indefinite life) 2,878 — 2,878 3,025 — 3,025 N/A $ 6,602 (3,104 ) 3,498 6,756 (3,090 ) 3,666 |
Schedule of finite-lived intangible assets future amortization expense | As of December 31, 2019 , the related amortization and interest expense for each of the next five years ending December 31 was as follows (in millions): 2020 $ 123 2021 142 2022 124 2023 75 2024 62 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following: December 31, (in millions) 2019 2018 Accounts payable non-trade $ 369 314 Allowance for sales returns 238 242 Accrued compensation and benefits 112 146 Sales and other taxes 104 101 Accrued interest 57 58 Operating lease liabilities 28 — Income taxes 23 37 Deferred revenue 19 24 Accrued cable distribution fees 9 39 Other 86 65 $ 1,045 1,026 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Long-term debt and finance lease obligations consisted of the following: December 31, (in millions) 2019 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 6.25% Senior Secured Notes due 2068 500 — Senior secured credit facility 1,105 1,185 Finance lease obligations 181 188 Less debt issuance costs, net (40 ) (25 ) Total debt and finance lease obligations 5,119 5,120 Less current portion (18 ) (421 ) Long-term portion of debt and finance lease obligations $ 5,101 4,699 |
Leases and Transponder Servic_2
Leases and Transponder Service Agreements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases and Transponder Service Agreements [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease cost for the year ended December 31, 2019 , were as follows: (in millions) December 31, 2019 Finance lease cost Depreciation of leased assets $ 20 Interest on lease liabilities 9 Total finance lease cost 29 Operating lease cost 32 Total lease cost $ 61 |
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: December 31, 2019 Weighted-average remaining lease term (years): Finance leases 9.2 Operating leases 12.4 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) December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 214 Accrued liabilities $ 28 Other long-term liabilities 190 Total operating lease liabilities $ 218 Finance Leases: Property and equipment $ 282 Accumulated depreciation (129 ) Property and equipment, net $ 153 Current portion of debt and finance lease obligations $ 18 Long-term portion of debt and finance lease obligations 163 Total finance lease liabilities $ 181 |
Leases, Supplemental Cash Flow Information [Table Text Block] | Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows: (in millions) December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating lease $ 35 Operating cash flows from finance leases 9 Financing cash flows from finance leases 22 Right-of-use assets obtained in exchange for lease obligations: Operating leases 151 Finance leases $ 16 |
Future minimum lease payments | Future payments under noncancelable operating leases and finance leases with initial terms of one year or more as of December 31, 2019 consisted of the following: (in millions) Finance leases Operating leases Total leases 2020 $ 26 38 64 2021 25 26 51 2022 25 23 48 2023 25 21 46 2024 23 20 43 Thereafter 108 186 294 Total lease payments 232 314 546 Less: imputed interest (51 ) (96 ) (147 ) Total lease liabilities $ 181 218 399 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Disaggregated revenue by segment and product category consisted of the following: Year ended December 31, 2019 Year ended December 31, 2018 (in millions) QxH QVC-International Total QxH QVC-International Total Home $ 3,047 905 3,952 3,175 1,023 4,198 Beauty 1,299 659 1,958 1,326 640 1,966 Apparel 1,289 422 1,711 1,323 453 1,776 Accessories 918 376 1,294 933 273 1,206 Electronics 1,141 107 1,248 1,129 119 1,248 Jewelry 402 226 628 473 213 686 Other revenue 181 14 195 185 17 202 Total net revenue $ 8,277 2,709 10,986 8,544 2,738 11,282 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | In accordance with the new revenue standard requirements adopted as of January 1, 2018, the impact of adoption on our condensed consolidated statements of operations was as follows: Statements of Operations Year ended December 31, 2018 (in millions) As Reported Balances Without Adoption of ASC 606 Effect of Change Increase/(Decrease) Net revenue $ 11,282 11,143 139 Costs and expenses: Cost of goods sold (exclusive of depreciation and amortization) 7,248 7,238 10 Operating 881 879 2 Selling, general and administrative, including transaction related costs and stock-based compensation 1,200 1,082 118 Income tax expense 334 332 2 Net income $ 928 921 7 |
Revenue Valuation Allowance and
Revenue Valuation Allowance and Reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for Sales Returns [Abstract] | |
Summary of activity in allowance for sales returns | A summary of activity in the allowance for sales returns, recorded on a gross basis for the years ended December 31, 2019 and 2018 and recorded on a net margin basis for the year ended December 31, 2017, was as follows: (in millions) Balance Additions- Deductions Transfer of HSN reserve Balance 2019 $ 242 2,138 (2,142 ) — 238 2018 243 2,213 (2,214 ) — 242 2017 93 982 (979 ) 23 119 |
Stock Options and Other Share_2
Stock Options and Other Share-Based Awards Stock Options and Other Share- Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock options activity | A summary of the activity of the Liberty Incentive Plan with respect to the QRTEA Options granted to QVC employees and officers as of and during the year ended December 31, 2019 is presented below: Options Weighted Aggregate Weighted average remaining Outstanding as of January 1, 2019 14,653,589 $ 24.46 $ 8,353 4.4 Granted 2,217,707 12.59 Exercised (335,581 ) 16.34 Forfeited (3,491,762 ) 21.35 Outstanding as of December 31, 2019 13,043,953 23.49 N/A 4.0 Exercisable as of December 31, 2019 7,636,365 25.05 N/A 3.2 |
Schedule of stock options valuation assumptions | During the years ended December 31, 2019, 2018 and 2017 , the fair value of each QRTEA Option was determined as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2019 2018 2017 Expected volatility 30.1 % 29.7 % 30.3 % Expected term (years) 5.7 5.2 5.9 Risk free interest rate 2.2 % 2.7 % 2.1 % Expected dividend yield — — — |
Schedule of restricted stock activity | A summary of the activity of the Liberty Incentive Plan with respect to the QRTEA restricted shares granted to QVC employees and officers as of and during the year ended December 31, 2019 is presented below: Restricted shares Weighted average Outstanding as of January 1, 2019 1,599,293 $ 25.42 Granted 1,844,889 16.83 Vested (598,233 ) 25.95 Forfeited (344,814 ) 21.81 Outstanding as of December 31, 2019 2,501,135 19.45 |
Income Taxes Income Tax (Tables
Income Taxes Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense (benefit) consisted of the following: Years ended December 31, (in millions) 2019 2018 2017 Current: U.S. federal $ 141 239 352 State and local 37 37 27 Foreign jurisdictions 93 84 87 Total 271 360 466 Deferred: U.S. federal (11 ) (27 ) (320 ) State and local 3 (2 ) (7 ) Foreign jurisdictions (1 ) 3 — Total (9 ) (26 ) (327 ) Total income tax expense $ 262 334 139 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Pre-tax income (loss) was as follows: Years ended December 31, (in millions) 2019 2018 2017 QxH $ 843 1,062 877 QVC-International 236 200 209 Consolidated QVC $ 1,079 1,262 1,086 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 21% in 2019 and 2018 and 35% in 2017, as a result of the following: Years ended December 31, 2019 2018 2017 Provision at statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.9 2.2 1.0 Foreign taxes 1.0 0.8 — Write-off of investment and notes of foreign subsidiary (3.1 ) — — Valuation allowance 3.2 2.6 1.0 Permanent differences (0.2 ) (0.2 ) (2.2 ) Impact of Tax Cuts and Jobs Act — — (26 ) Investment in subsidiary 0.9 0.6 4.0 Impact of foreign currency tax regulation (0.7 ) (0.6 ) 0.4 Other, net (0.7 ) 0.1 (0.4 ) Total income tax expense 24.3 % 26.5 % 12.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: December 31, (in millions) 2019 2018 Deferred tax assets: Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts $ 31 29 Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 38 33 Allowance for sales returns 30 31 Deferred revenue 6 15 Deferred compensation 38 39 Unrecognized federal and state tax benefits 13 10 Net operating loss carryforwards 57 49 Foreign tax credits carryforward 43 17 Lease obligations 68 — Accrued liabilities 15 33 Other 8 5 Subtotal 347 261 Valuation allowance (99 ) (64 ) Total deferred tax assets 248 197 Deferred tax liabilities: Depreciation and amortization (823 ) (840 ) Lease assets (66 ) — Cumulative translation of foreign currencies (22 ) (16 ) Investment in subsidiary (26 ) (41 ) Total deferred tax liabilities (937 ) (897 ) Net deferred tax liability $ (689 ) (700 ) |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | A reconciliation of the 2018 and 2019 beginning and ending amount of the liability for unrecognized tax benefits is as follows: (in millions) Balance at January 1, 2018 $ 53 Increases related to prior year tax positions 1 Decreases related to prior year tax positions (9 ) Decreases related to settlements with taxing authorities — Increases related to current year tax positions 9 Balance at December 31, 2018 54 Increases related to prior year tax positions 9 Decreases related to prior year tax positions (7 ) Decreases related to settlements with taxing authorities (4 ) Increases related to current year tax positions 8 Balance at December 31, 2019 $ 60 |
Assets and Liabilities Measur_2
Assets and Liabilities Measured at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 272 272 — — Interest rate swap arrangements (note 8) — — — — Long-term liabilities: Debt (note 8) 5,116 760 4,356 — Interest rate swap arrangements (note 8) — — — — 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 8) 5 — 5 — Long-term liabilities: Debt (note 8) 4,758 189 4,569 — |
Information about QVC's Opera_2
Information about QVC's Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Adjusted OIBDA by Segment | Years ended December 31, 2019 2018 2017 (in millions) Net Adjusted Net Adjusted Net Adjusted QxH $ 8,277 1,536 8,544 1,630 6,140 1,455 QVC-International 2,709 446 2,738 429 2,631 451 Consolidated QVC $ 10,986 1,982 11,282 2,059 8,771 1,906 |
Schedule of Depreciation and Amortization by Segment | Years ended December 31, 2019 2018 2017 (in millions) Depreciation Amortization Depreciation Amortization Depreciation Amortization QxH $ 113 269 118 227 93 330 QVC-International 73 13 56 10 62 34 Consolidated QVC $ 186 282 174 237 155 364 |
Schedule of Capital Expenditures and Total Assets by Segment | Years ended December 31, 2019 2018 (in millions) Total Capital Total Capital QxH $ 12,659 257 12,702 161 QVC-International 2,268 34 2,154 67 Consolidated QVC $ 14,927 291 14,856 228 |
Property and equipment, net by Segment | Property and equipment, net of accumulated depreciation, by segment were as follows: December 31, (in millions) 2019 2018 QxH $ 800 712 QVC-International 415 453 Consolidated QVC $ 1,215 1,165 |
Reconciliation of Adjusted OIBDA to Income before Income Taxes | The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: Years ended December 31, (in millions) 2019 2018 2017 Adjusted OIBDA $ 1,982 2,059 1,906 Impairment loss (147 ) (30 ) — Transaction related costs (1 ) (60 ) (39 ) Stock-based compensation (39 ) (46 ) (39 ) Depreciation and amortization (468 ) (411 ) (519 ) Operating Income 1,327 1,512 1,309 Equity in losses of investee — (3 ) (3 ) Losses on financial instruments (5 ) (2 ) — Interest expense, net (240 ) (243 ) (214 ) Foreign currency loss (3 ) — (6 ) Loss on extinguishment of debt — (2 ) — Income before income taxes $ 1,079 1,262 1,086 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table summarizes net revenues based on revenues generated by subsidiaries located within the identified geographic area: Years ended December 31, (in millions) 2019 2018 2017 United States $ 8,277 8,544 6,140 Japan 1,028 947 934 Germany 890 943 899 United Kingdom 640 679 640 Other countries 151 169 158 Consolidated QVC $ 10,986 11,282 8,771 |
Long-lived Assets by Geographic Areas | The following table summarizes property and equipment, net of accumulated depreciation, based on physical location: December 31, (in millions) 2019 2018 United States $ 800 712 Germany 154 161 Japan 153 165 United Kingdom 75 77 Other countries 33 50 Consolidated QVC $ 1,215 1,165 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 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 as of January 1, 2017 $ (224 ) (224 ) Other comprehensive income attributable to QVC, Inc. stockholder 131 131 Balance as of December 31, 2017 (93 ) (93 ) Other comprehensive loss attributable to QVC, Inc. stockholder (51 ) (51 ) Balance as of December 31, 2018 (144 ) (144 ) Other comprehensive income attributable to QVC, Inc. stockholder — — Balance as of December 31, 2019 $ (144 ) (144 ) |
Schedule of Component of Comprehensive Income (Loss) | The following table summarizes the tax effects related to the component of other comprehensive income: (in millions) Before-tax amount Tax benefit (expense) Net-of-tax amount Year ended December 31, 2019: Foreign currency translation adjustments $ — 1 1 Other comprehensive income — 1 1 Year ended December 31, 2018: Foreign currency translation adjustments $ (49 ) 1 (48 ) Other comprehensive loss (49 ) 1 (48 ) Year ended December 31, 2017: Foreign currency translation adjustments $ 156 (21 ) 135 Other comprehensive income 156 (21 ) 135 |
Guarantor_Non-Guarantor Subsi_2
Guarantor/Non-Guarantor Subsidiary Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] | |
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Period | Consolidating Balance Sheets December 31, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Assets Current assets: Cash and cash equivalents $ 37 192 332 — 561 Restricted cash 5 — 3 — 8 Accounts receivable, net 1,169 300 344 — 1,813 Inventories 711 258 245 — 1,214 Prepaid expenses and other current assets 105 32 47 — 184 Total current assets 2,027 782 971 — 3,780 Property and equipment, net 264 245 706 — 1,215 Operating lease right-of-use assets 2 15 197 — 214 Television distribution rights, net — 139 1 — 140 Goodwill 4,190 922 859 — 5,971 Other intangible assets, net 560 2,909 29 — 3,498 Other noncurrent assets 18 12 79 — 109 Investments in subsidiaries 5,747 932 — (6,679 ) — Total assets $ 12,808 5,956 2,842 (6,679 ) 14,927 Liabilities and equity Current liabilities: Current portion of debt and finance lease obligations $ 2 1 15 — 18 Accounts payable-trade 477 181 255 — 913 Accrued liabilities 311 402 332 — 1,045 Intercompany accounts payable (receivable) 181 (1,356 ) 1,175 — — Total current liabilities 971 (772 ) 1,777 — 1,976 Long-term portion of debt and finance lease obligations 4,945 5 151 — 5,101 Deferred income taxes 98 653 (27 ) — 724 Other long-term liabilities 120 16 186 — 322 Total liabilities 6,134 (98 ) 2,087 — 8,123 Equity: QVC, Inc. stockholder's equity 6,674 6,054 625 (6,679 ) 6,674 Noncontrolling interest — — 130 — 130 Total equity 6,674 6,054 755 (6,679 ) 6,804 Total liabilities and equity $ 12,808 5,956 2,842 (6,679 ) 14,927 |
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Period | 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 | Consolidating Statements of Operations Year ended December 31, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 6,236 3,094 2,938 (1,282 ) 10,986 Operating costs and expenses: Cost of goods sold (exclusive of depreciation and amortization shown separately below) 3,879 1,593 1,826 (150 ) 7,148 Operating 441 416 279 (368 ) 768 Selling, general and administrative, including transaction related costs and stock-based compensation 1,225 215 452 (764 ) 1,128 Depreciation 63 35 88 — 186 Amortization 71 199 12 — 282 Impairment loss — 147 — — 147 5,679 2,605 2,657 (1,282 ) 9,659 Operating income 557 489 281 — 1,327 Other (expense) income: Losses on financial instruments (5 ) — — — (5 ) Interest (expense) income, net (236 ) 4 (8 ) — (240 ) Foreign currency loss (1 ) — (2 ) — (3 ) Intercompany interest income (expense) 28 40 (68 ) — — (214 ) 44 (78 ) — (248 ) Income before income taxes 343 533 203 — 1,079 Income tax expense (102 ) (68 ) (92 ) — (262 ) Equity in earnings of subsidiaries, net of tax 576 37 — (613 ) — Net income 817 502 111 (613 ) 817 Less net income attributable to the noncontrolling interest (50 ) — (50 ) 50 (50 ) Net income attributable to QVC, Inc. stockholder $ 767 502 61 (563 ) 767 |
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Period | Consolidating Statements of Operations Year ended December 31, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 6,502 3,185 2,964 (1,369 ) 11,282 Operating costs and expenses: Cost of goods sold (exclusive of depreciation and amortization shown separately below) 3,979 1,617 1,832 (180 ) 7,248 Operating 442 533 288 (382 ) 881 Selling, general and administrative, including transaction related costs and stock-based compensation 1,252 282 473 (807 ) 1,200 Depreciation 65 37 72 — 174 Amortization 79 147 11 — 237 Impairment loss — 30 — — 30 5,817 2,646 2,676 (1,369 ) 9,770 Operating income 685 539 288 — 1,512 Other (expense) income: Equity in losses of investee — — (3 ) — (3 ) Losses on financial instruments (1 ) (1 ) — — (2 ) Interest expense, net (223 ) (15 ) (5 ) — (243 ) Foreign currency gain (loss) 2 — (2 ) — — Loss on extinguishment of debt — (2 ) — — (2 ) Intercompany interest (expense) income (34 ) 151 (117 ) — — (256 ) 133 (127 ) — (250 ) Income before income taxes 429 672 161 — 1,262 Income tax expense (127 ) (121 ) (86 ) — (334 ) Equity in earnings of subsidiaries, net of tax 626 50 — (676 ) — Net income 928 601 75 (676 ) 928 Less net income attributable to the noncontrolling interest (46 ) — (46 ) 46 (46 ) Net income attributable to QVC, Inc. stockholder $ 882 601 29 (630 ) 882 |
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Period 2 [Table Text Block] [Table Text Block] | Consolidating Statements of Operations Year ended December 31, 2017 (in millions) Parent Combined Combined Eliminations Consolidated- Net revenue $ 6,298 1,000 2,848 (1,375 ) 8,771 Operating costs and expenses: Cost of goods sold (exclusive of depreciation and amortization shown separately below) 3,877 157 1,744 (180 ) 5,598 Operating 433 265 277 (374 ) 601 Selling, general and administrative, including transaction related costs and stock-based compensation 1,097 40 428 (821 ) 744 Depreciation 67 7 81 — 155 Amortization 187 142 35 — 364 5,661 611 2,565 (1,375 ) 7,462 Operating income 637 389 283 — 1,309 Other (expense) income: Equity in losses of investee — — (3 ) — (3 ) Interest (expense) income, net (215 ) 1 — — (214 ) Foreign currency (loss) gain (5 ) 1 (2 ) — (6 ) Intercompany interest (expense) income (12 ) 96 (84 ) — — (232 ) 98 (89 ) — (223 ) Income before income taxes 405 487 194 — 1,086 Income tax (expense) benefit (129 ) 93 (103 ) — (139 ) Equity in earnings of subsidiaries, net of tax 671 47 — (718 ) — Net income 947 627 91 (718 ) 947 Less net income attributable to the noncontrolling interest (46 ) — (46 ) 46 (46 ) Net income attributable to QVC, Inc. stockholder $ 901 627 45 (672 ) 901 |
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Period | Consolidating Statements of Comprehensive Income Year ended December 31, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 817 502 111 (613 ) 817 Foreign currency translation adjustments, net of tax 1 — 2 (2 ) 1 Total comprehensive income 818 502 113 (615 ) 818 Comprehensive income attributable to noncontrolling interest (51 ) — (51 ) 51 (51 ) Comprehensive income attributable to QVC, Inc. stockholder $ 767 502 62 (564 ) 767 |
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Period | Consolidating Statements of Comprehensive Income Year ended December 31, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 928 601 75 (676 ) 928 Foreign currency translation adjustments, net of tax (48 ) — (48 ) 48 (48 ) Total comprehensive income 880 601 27 (628 ) 880 Comprehensive income attributable to noncontrolling interest (49 ) — (49 ) 49 (49 ) Comprehensive income attributable to QVC, Inc. stockholder $ 831 601 (22 ) (579 ) 831 |
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Period 2 [Table Text Block] [Table Text Block] | Consolidating Statements of Comprehensive Income Year ended December 31, 2017 (in millions) Parent Combined Combined Eliminations Consolidated- Net income $ 947 627 91 (718 ) 947 Foreign currency translation adjustments, net of tax 135 — 135 (135 ) 135 Total comprehensive income 1,082 627 226 (853 ) 1,082 Comprehensive income attributable to noncontrolling interest (50 ) — (50 ) 50 (50 ) Comprehensive income attributable to QVC, Inc. stockholder $ 1,032 627 176 (803 ) 1,032 |
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Period | Consolidating Statements of Cash Flows Year ended December 31, 2019 (in millions) Parent Combined Combined Eliminations Consolidated- Operating activities: Net cash provided by operating activities $ 368 836 118 — 1,322 Investing activities: Capital expenditures (127 ) (65 ) (99 ) — (291 ) Expenditures for television distribution rights — (134 ) — — (134 ) Changes in other noncurrent assets (11 ) (2 ) 2 — (11 ) Other investing activities — 29 — — 29 Intercompany investing activities 319 (999 ) — 680 — Net cash provided by (used in) investing activities 181 (1,171 ) (97 ) 680 (407 ) Financing activities: Principal payments of debt and finance lease obligations (2,586 ) — (13 ) — (2,599 ) Principal borrowings of debt from senior secured credit facility 2,496 — — — 2,496 Principal repayment of senior secured notes (400 ) — — — (400 ) Proceeds from issuance of senior secured notes 500 — — — 500 Payment of debt origination fees (18 ) — — — (18 ) Capital contributions received from Qurate Retail, Inc. 50 — — — 50 Dividends paid to Qurate Retail Inc. (877 ) (2 ) — — (879 ) Dividends paid to noncontrolling interest — — (40 ) — (40 ) Other financing activities (4 ) — — — (4 ) Net short-term intercompany debt borrowings (repayments) 276 (341 ) 65 — — Other intercompany financing activities (22 ) 678 24 (680 ) — Net cash (used in) provided by financing activities (585 ) 335 36 (680 ) (894 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — — (2 ) — (2 ) Net (decrease) increase in cash, cash equivalents and restricted cash (36 ) — 55 — 19 Cash, cash equivalents and restricted cash, beginning of period 78 192 280 — 550 Cash, cash equivalents and restricted cash, end of period $ 42 192 335 — 569 |
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Period | Condensed Consolidating Statements of Cash Flows Year ended December 31, 2018 (in millions) Parent Combined Combined Eliminations Consolidated- Operating activities: Net cash provided by operating activities $ 461 592 103 — 1,156 Investing activities: Capital expenditures (121 ) (19 ) (88 ) — (228 ) Expenditures for television distribution rights — (139 ) (1 ) — (140 ) Changes in other noncurrent assets 1 (4 ) (13 ) — (16 ) Other investing activities — (29 ) — — (29 ) Intercompany investing activities 433 (688 ) — 255 — Net cash provided by (used in) investing activities 313 (879 ) (102 ) 255 (413 ) Financing activities: Principal payments of debt and capital lease obligations (2,680 ) (851 ) (10 ) — (3,541 ) Principal borrowings of debt from senior secured credit facility 2,362 388 — — 2,750 Proceeds from issuance of senior secured notes 225 — — — 225 Payment of debt origination fees (14 ) — — — (14 ) Capital contributions received from Qurate Retail, Inc. 340 180 — — 520 Dividends paid to Qurate Retail, Inc. (367 ) — — — (367 ) Dividends paid to noncontrolling interest — — (40 ) — (40 ) Other financing activities (10 ) (8 ) — — (18 ) Net short-term intercompany debt (repayments) borrowings (548 ) 498 50 — — Other intercompany financing activities (11 ) 217 49 (255 ) — Net cash (used in) provided by financing activities (703 ) 424 49 (255 ) (485 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — — 2 — 2 Net increase in cash, cash equivalents and restricted cash 71 137 52 — 260 Cash, cash equivalents and restricted cash, beginning of period 7 55 228 — 290 Cash, cash equivalents and restricted cash, end of period $ 78 192 280 — 550 |
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Year 2 [Table Text Block] [Table Text Block] | Condensed Consolidating Statements of Cash Flows Year ended December 31, 2017 (in millions) Parent Combined Combined Eliminations Consolidated- Operating activities: Net cash provided by operating activities $ 641 507 54 — 1,202 Investing activities: Capital expenditures (103 ) (4 ) (45 ) — (152 ) Expenditures for television distribution rights — (50 ) — — (50 ) Changes in other noncurrent assets (1 ) — — — (1 ) Intercompany investing activities 545 (1,507 ) — 962 — Common control transaction with Qurate Retail, Inc., net of cash received — 22 — — 22 Net cash provided by (used in) investing activities 441 (1,539 ) (45 ) 962 (181 ) Financing activities: Principal payments of debt and capital lease obligations (2,268 ) — (10 ) — (2,278 ) Principal borrowings of debt from senior secured credit facility 2,162 — — — 2,162 Dividends paid to Qurate Retail, Inc. (866 ) — — — (866 ) Dividends paid to noncontrolling interest — — (40 ) — (40 ) Other financing activities (16 ) — — — (16 ) Net short-term intercompany debt (repayments) borrowings (170 ) (1,267 ) 1,437 — — Other intercompany financing activities 73 2,257 (1,368 ) (962 ) — Net cash (used in) provided by financing activities (1,085 ) 990 19 (962 ) (1,038 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — — 13 — 13 Net (decrease) increase in cash, cash equivalents and restricted cash (3 ) (42 ) 41 — (4 ) Cash, cash equivalents and restricted cash, beginning of period 10 97 187 — 294 Cash, cash equivalents and restricted cash, end of period $ 7 55 228 — 290 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Schedule of Quarterly Financial Information | Year ended December 31, 2019 (in millions) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net revenue $ 2,501 2,514 2,504 3,467 Operating income $ 326 365 330 306 Net income $ 186 218 188 225 Net income attributable to QVC, Inc. stockholder $ 176 206 174 211 | Year ended December 31, 2018 (in millions) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net revenue $ 2,602 2,556 2,569 3,555 Operating income $ 356 390 305 461 Net income $ 212 244 181 291 Net income attributable to QVC, Inc. stockholder $ 201 233 170 278 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 29, 2017 | Jun. 23, 2016 | |
General business information | |||||
Dividends paid to noncontrolling interest | $ 40 | $ 40 | $ 40 | ||
Line of credit facility maximum borrowing capacity | 3,650 | $ 2,650 | |||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | $ 1 | 60 | $ 39 | ||
Severance Costs | 9 | ||||
Inventory Write-down | $ 4 | ||||
CNR Home Shopping Co., Ltd. | |||||
General business information | |||||
Equity method investment, ownership percentage | 49.00% | ||||
HSN, Inc. | |||||
General business information | |||||
Remaining ownership interest acquired by parent | 62.00% | ||||
Ownership Percentage by Parent | 100.00% | ||||
Japan | |||||
General business information | |||||
Investment owned, percent of net assets | 60.00% | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 40.00% | ||||
QVC [Member] | Senior secured credit facility | |||||
General business information | |||||
Line of credit facility maximum borrowing capacity | $ 3,250 | $ 2,250 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, Purchase Accounting Adjustments | $ 18 | |
Beginning balance | $ 5,972 | 5,979 |
Goodwill, Foreign Currency Translation Gain (Loss) | (1) | (25) |
Ending balance | $ 5,971 | $ 5,972 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Other Details (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Customer returns | $ 2,138 | $ 2,213 | $ 1,811 |
Advertising Expense | 153 | 138 | $ 86 |
Cash Equivalents, at Carrying Value | 272 | 267 | |
CNR Home Shopping Co., Ltd. | |||
Finite-Lived Intangible Assets [Line Items] | |||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 40 | $ 38 | |
Equity method investment, ownership percentage | 49.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Indefinite LIved Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets Disclosure [Abstract] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 147 | $ 30 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Common control transaction (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 29, 2017 | |
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | $ 1 | $ 60 | $ 39 | |||||||||
Cash and cash equivalents | $ 561 | $ 543 | 561 | 543 | ||||||||
Accounts receivable, less allowance for doubtful accounts of $123 at December 31, 2019 and $112 at December 31, 2018 | 1,813 | 1,787 | 1,813 | 1,787 | ||||||||
Inventories | 1,214 | 1,280 | 1,214 | 1,280 | ||||||||
Property and equipment, net | 1,215 | 1,165 | 1,215 | 1,165 | ||||||||
Goodwill | 5,971 | 5,972 | 5,971 | 5,972 | 5,979 | |||||||
Other intangible assets, net | 3,498 | 3,666 | 3,498 | 3,666 | ||||||||
Deferred income taxes | (724) | (700) | (724) | (700) | ||||||||
Other long-term liabilities | 322 | 173 | 322 | 173 | ||||||||
Business Combination, Consideration Transferred | 1,671 | |||||||||||
Operating income | $ 306 | $ 330 | $ 365 | $ 326 | $ 461 | $ 305 | $ 390 | $ 356 | $ 1,327 | $ 1,512 | 1,309 | |
HSN, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Tradenames (indefinite life) | $ 627 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Technology | 105 | |||||||||||
Business Acquisition, Pro Forma Revenue | 11,114 | |||||||||||
Cash and cash equivalents | 22 | |||||||||||
Accounts receivable, less allowance for doubtful accounts of $123 at December 31, 2019 and $112 at December 31, 2018 | 292 | |||||||||||
Inventories | 185 | |||||||||||
Property and equipment, net | 165 | |||||||||||
Goodwill | 904 | |||||||||||
Other intangible assets, net | 1,165 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 425 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Capitalized Software | 7 | |||||||||||
Other Assets | 37 | |||||||||||
Accounts Payable and Accrued Liabilities | (366) | |||||||||||
Long-term Debt | (460) | |||||||||||
Deferred income taxes | (263) | |||||||||||
Other long-term liabilities | $ (10) | |||||||||||
Business Acquisition, Pro Forma Operating Income (Loss) | 1,163 | |||||||||||
Business Combination, Consideration Transferred | 1,671 | |||||||||||
Operating income | $ 38 | |||||||||||
Purchased and internally developed software | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |||||||||||
Customer Relationships [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||||||||||
Technology [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Operating Lease, Right-of-Use Asset | $ 214 | $ 0 | $ 214 | $ 0 | $ 92 | |||||||
Accumulated deficit | (2,390) | (2,269) | (2,390) | (2,269) | ||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 1,128 | 1,200 | $ 744 | |||||||||
Operating | 768 | 881 | 601 | |||||||||
Cost of Goods and Services Sold | 7,148 | 7,248 | 5,598 | |||||||||
Accrued liabilities | 1,045 | 1,026 | 1,045 | 1,026 | ||||||||
Prepaid expenses and other current assets | 184 | 216 | 184 | 216 | ||||||||
Income Tax Expense (Benefit) | 262 | 334 | 139 | |||||||||
Inventories | 1,214 | 1,280 | 1,214 | 1,280 | ||||||||
Net income | 225 | $ 188 | $ 218 | $ 186 | 291 | $ 181 | $ 244 | $ 212 | 817 | 928 | 947 | |
Net revenue | 3,467 | $ 2,504 | $ 2,514 | $ 2,501 | 3,555 | $ 2,569 | $ 2,556 | $ 2,602 | 10,986 | 11,282 | $ 8,771 | |
Allowance for sales returns | 238 | 242 | 238 | 242 | ||||||||
Operating Lease, Liability, Current | 28 | $ 0 | 28 | 0 | 18 | |||||||
Operating Lease, Liability, Noncurrent | $ 190 | $ 190 | 87 | |||||||||
Deferred Rent Credit | $ 13 | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 118 | |||||||||||
Cost of Goods and Services Sold | 10 | |||||||||||
Income Tax Expense (Benefit) | 2 | |||||||||||
Net income | 7 | |||||||||||
Net revenue | 139 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 1,082 | |||||||||||
Cost of Goods and Services Sold | 7,238 | |||||||||||
Income Tax Expense (Benefit) | 332 | |||||||||||
Net income | 921 | |||||||||||
Net revenue | $ 11,143 |
Accounts Receivable Accounts _3
Accounts Receivable Accounts Receivable (Accounts Receivable) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)installment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable, gross | $ 1,936 | $ 1,899 | |
Less allowance for doubtful accounts | (123) | (112) | |
Accounts receivable, net | 1,813 | 1,787 | |
Installment sales plan | |||
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable, gross | 1,586 | 1,533 | |
Credit Card Receivable [Member] | |||
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable, gross | 247 | 269 | |
Other receivables [Member] | |||
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable, gross | 103 | 97 | |
SG&A | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance income from company branded credit card issued by financial institution | $ 124 | $ 118 | $ 105 |
Minimum | Installment sales plan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of installments plan permits for customers | installment | 2 | ||
Maximum | Installment sales plan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of installments plan permits for customers | installment | 5 |
Accounts Receivable Accounts _4
Accounts Receivable Accounts Receivable (Activity in the Allowance for Doubtful Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance beginning of year | $ 112 | $ 91 | $ 97 |
Additions- charged to expense | 124 | 112 | 72 |
Deductions- write-offs | (113) | (91) | (78) |
Balance end of year | $ 123 | $ 112 | $ 91 |
Property and Equipment, Net P_3
Property and Equipment, Net Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 2,553 | $ 2,446 |
Less: accumulated depreciation | (1,338) | (1,281) |
Property and equipment, net | $ 1,215 | 1,165 |
Property, Plant and Equipment, Useful Life | 20 years | |
Property and equipment, disposals | $ 117 | 56 |
Land | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 128 | 128 |
Buildings and improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 1,169 | 1,174 |
Furniture and other equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 586 | 543 |
Broadcast equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 140 | 179 |
Computer equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 187 | 186 |
Transponders and terrestrial transmitter (note 9) | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 177 | 178 |
Projects in progress | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 166 | $ 58 |
Minimum | Buildings and improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum | Furniture and other equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Minimum | Broadcast equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Minimum | Computer equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Minimum | Transponders and terrestrial transmitter (note 9) | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum | Buildings and improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 39 years | |
Maximum | Furniture and other equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Maximum | Broadcast equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 6 years | |
Maximum | Computer equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum | Transponders and terrestrial transmitter (note 9) | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 15 years |
Television Distribution Right_3
Television Distribution Rights, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 1 year 3 months | ||
Percentage of Net Sales | 5.00% | ||
Television distribution rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Television distribution rights | $ 764 | $ 723 | |
Less accumulated amortization | (624) | (583) | |
Television distribution rights, net | 140 | 140 | |
Amortization | 133 | 77 | $ 157 |
Commission Expense | $ 350 | $ 363 | $ 298 |
Television Distribution Right_4
Television Distribution Rights, Net (Future Amortization Expense) (Details) - Television distribution rights - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Commission Expense | $ 350 | $ 363 | $ 298 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2020 | 120 | ||
2021 | 17 | ||
2022 | 3 | ||
2023 | 0 | ||
2024 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill | $ 5,971 | $ 5,972 | $ 5,979 |
Goodwill, Purchase Accounting Adjustments | 18 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | (1) | (25) | |
QxH [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 5,112 | 5,112 | 5,094 |
Goodwill, Purchase Accounting Adjustments | 18 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
QVC-International | |||
Goodwill [Line Items] | |||
Goodwill | 859 | 860 | $ 885 |
Goodwill, Purchase Accounting Adjustments | 0 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | $ (1) | $ (25) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net (Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Remaining weighted average years | 1 year 3 months | ||
Indefinite-Lived Trade Names | $ 2,878 | $ 3,025 | |
Intangible Assets, Gross (Excluding Goodwill) | 6,602 | 6,756 | |
Other Intangible Assets (Excluding Goodwill), Accumulated Amortization | 3,104 | 3,090 | |
Other intangible assets, net | 3,498 | 3,666 | |
Finite-Lived Intangible Assets, Period Increase (Decrease) | (130) | (11) | |
Amortization of Other Intangible Assets | 149 | 160 | $ 207 |
Purchased and internally developed software | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Capitalized Computer Software, Gross | 885 | 890 | |
Capitalized Computer Software, Accumulated Amortization | 603 | 640 | |
Capitalized Computer Software, Net | $ 282 | 250 | |
Remaining weighted average years | 3 years | ||
Customer Lists [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Remaining weighted average years | 7 years | ||
Finite-Lived Customer Relationships, Gross | $ 2,829 | 2,831 | |
Finite-Lived Customer Relationships, Accumulated Amortization | 2,499 | 2,450 | |
Finite lived customer relationships, net | $ 330 | 381 | |
Debt [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Remaining weighted average years | 4 years | ||
Debt Issuance Costs, Gross | $ 10 | 10 | |
Accumulated Amortization, Debt Issuance Costs | 2 | 0 | |
Debt Issuance Costs, Net | $ 8 | $ 10 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Impairment [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 147 | $ 30 | $ 0 |
HSN, Inc. | |||
Impairment [Line Items] | |||
Tradenames (indefinite life) | $ 597 | $ 627 | |
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | 450 | ||
Intangible Asset, Impaired, Accumulated Impairment Loss | $ 177 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net (Future Amortization Expense) (Details) - Other Intangible Assets [Member] $ in Millions | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 123 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 142 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 124 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 75 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 62 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Accrued Liabilities [Abstract] | |||
Accounts payable non-trade | $ 369 | $ 314 | |
Allowance for sales returns | 238 | 242 | |
Accrued compensation and benefits | 112 | 146 | |
Sales and other taxes | 104 | 101 | |
Interest Payable, Current | 57 | 58 | |
Operating Lease, Liability, Current | 28 | $ 18 | 0 |
Deferred Income Tax Liabilities, Net | 23 | 37 | |
Deferred Revenue | 19 | 24 | |
Accrued Cable Distribution Fees | 9 | 39 | |
Other | 86 | 65 | |
Accrued liabilities | $ 1,045 | $ 1,026 |
Long-Term Debt (Debt) (Details)
Long-Term Debt (Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 06, 2019 | Nov. 26, 2019 | Dec. 31, 2018 | Sep. 13, 2018 |
Debt Instrument [Line Items] | |||||
Less debt issuance costs, net | $ (40) | $ (25) | |||
Total debt and finance lease obligations | 5,119 | 5,120 | |||
Less current portion | (18) | (421) | |||
Long-term portion of debt and finance lease obligations | 5,101 | 4,699 | |||
3.125% Senior Secured Notes due 2019, net of original issue discount | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | 0 | 399 | |||
5.125% Senior Secured Notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | 500 | 500 | |||
4.375% Senior Secured Notes due 2023, net of original issue discount | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | 750 | 750 | |||
4.85% Senior Secured Notes due 2024, net of original issue discount | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | 600 | 600 | |||
4.45% Senior Secured Notes due 2025, net of original issue discount | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | 599 | 599 | |||
5.45% Senior Secured Notes due 2034, net of original issue discount | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | 399 | 399 | |||
5.95% Senior Secured Notes due 2043, net of original issue discount | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | 300 | 300 | |||
6.375% Senior Secured Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | 225 | 225 | $ 225 | ||
6.25% Senior Secured Notes [Member] [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | 500 | $ 500 | $ 435 | 0 | |
Senior secured credit facility | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | 1,105 | 1,185 | |||
Finance lease obligations | |||||
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | $ 181 | $ 188 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 26, 2020 | Feb. 04, 2020 | Dec. 06, 2019 | Nov. 26, 2019 | Jul. 01, 2019 | Sep. 13, 2018 | Jun. 23, 2016 | Jun. 15, 2016 | |
Debt Instrument [Line Items] | |||||||||||
Line of credit facility maximum borrowing capacity | $ 3,650 | $ 2,650 | |||||||||
Derivative, Notional Amount | $ 125 | $ 125 | |||||||||
Derivative Liability, Current | 1 | ||||||||||
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% | ||||||||||
Line of credit facility remaining borrowing capacity | $ 2,392 | ||||||||||
Line of credit facility interest rate at period end | 3.10% | 3.90% | |||||||||
Derivative Asset, Current | $ 1 | ||||||||||
Loss on extinguishment of debt | $ 0 | 2 | $ 0 | ||||||||
Debt weighted average interest rate | 4.70% | ||||||||||
Letters of Credit Outstanding, Amount | $ 12 | 13 | |||||||||
3.125% Senior Secured Notes due 2019, net of original issue discount | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate stated percentage | 3.125% | ||||||||||
Debt and Lease Obligation | $ 0 | 399 | |||||||||
5.125% Senior Secured Notes due 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate stated percentage | 5.125% | ||||||||||
Debt and Lease Obligation | $ 500 | 500 | |||||||||
4.375% Senior Secured Notes due 2023, net of original issue discount | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate stated percentage | 4.375% | ||||||||||
Debt and Lease Obligation | $ 750 | 750 | |||||||||
4.85% Senior Secured Notes due 2024, net of original issue discount | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate stated percentage | 4.85% | ||||||||||
Debt and Lease Obligation | $ 600 | 600 | |||||||||
4.45% Senior Secured Notes due 2025, net of original issue discount | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate stated percentage | 4.45% | ||||||||||
Debt and Lease Obligation | $ 599 | 599 | |||||||||
5.45% Senior Secured Notes due 2034, net of original issue discount | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate stated percentage | 5.45% | ||||||||||
Debt and Lease Obligation | $ 399 | 399 | |||||||||
5.95% Senior Secured Notes due 2043, net of original issue discount | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate stated percentage | 5.95% | ||||||||||
Debt and Lease Obligation | $ 300 | 300 | |||||||||
6.375% Senior Secured Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate stated percentage | 6.375% | ||||||||||
Debt Instrument, Call Feature | 5 years | ||||||||||
Debt and Lease Obligation | $ 225 | 225 | $ 225 | ||||||||
6.25% Senior Secured Notes [Member] [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate stated percentage | 6.25% | ||||||||||
Debt Instrument, Call Feature | 5 years | ||||||||||
Additional Option, Registered Debt | $ 65 | ||||||||||
Debt and Lease Obligation | $ 500 | 0 | $ 500 | $ 435 | |||||||
250 million interest rate swap [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Derivative, Notional Amount | 250 | ||||||||||
Derivative Asset, Current | $ 1 | $ 4 | |||||||||
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% | ||||||||||
Tranche One, Shared with Related Party [Member] | Senior secured credit facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility maximum borrowing capacity | $ 400 | 400 | |||||||||
Tranche One, Shared with Related Party [Member] | Standby Letters of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility standby letter of credit | 50 | ||||||||||
QVC [Member] | Senior secured credit facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility maximum borrowing capacity | $ 3,250 | $ 2,250 | |||||||||
Subsequent Event [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate stated percentage | 4.75% | ||||||||||
Debt and Lease Obligation | $ 575 | ||||||||||
Line of credit facility maximum borrowing capacity | 2,950 | ||||||||||
Line of credit facility remaining borrowing capacity | 1,692 | ||||||||||
Subsequent Event [Member] | Tranche One, Shared with Related Party [Member] | Senior secured credit facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility remaining borrowing capacity | $ 175 | ||||||||||
Subsequent Event [Member] | QVC [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility maximum borrowing capacity | $ 2,550 |
Leases and Transponder Servic_3
Leases and Transponder Service Agreements (Details) ft² in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 12 months | |||
Finance Lease, Right-of-Use Asset, Amortization | $ 20 | |||
Finance Lease, Interest Expense | 9 | |||
Finance Lease, Total Cost | 29 | |||
Total Lease Cost | 61 | |||
Capital Leases, Income Statement, Amortization Expense | $ 14 | $ 13 | ||
Operating leases expense | $ 32 | 34 | $ 23 | |
Operating leases | ||||
Finance Lease, Weighted Average Remaining Lease Term | 9 years 2 months | |||
Operating Lease, Weighted Average Remaining Lease Term | 12 years 5 months | |||
Finance Lease, Weighted Average Discount Rate, Percent | 5.00% | |||
Operating Lease, Weighted Average Discount Rate, Percent | 6.06% | |||
Operating Lease, Right-of-Use Asset | $ 214 | 0 | $ 92 | |
Operating Lease, Liability, Current | 28 | $ 0 | 18 | |
Operating Lease, Liability, Noncurrent | 190 | $ 87 | ||
Operating Lease, Liability | 218 | |||
Finance Lease, Right of Use Asset, Gross | 282 | |||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | (129) | |||
Finance Lease, Right-of-Use Asset | 153 | |||
Finance Lease, Liability, Current | 18 | |||
Finance Lease, Liability, Noncurrent | 163 | |||
Finance Lease, Liability | 181 | |||
Operating Lease, Payments | 35 | |||
Finance Lease, Interest Payment on Liability | 9 | |||
Finance Lease, Principal Payments | 22 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 151 | |||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 16 | |||
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 26 | |||
Finance Lease, Liability, Payments, Due Year Two | 25 | |||
Finance Lease, Liability, Payments, Due Year Three | 25 | |||
Finance Lease, Liability, Payments, Due Year Four | 25 | |||
Finance Lease, Liability, Payments, Due Year Five | 23 | |||
Finance Lease Liability, Payments, Thereafter | 108 | |||
Finance Lease, Liability, Payment, Due | 232 | |||
Imputed interest on finance lease | (51) | |||
Operating Leases, Future Minimum Payments Receivable, Remainder of Fiscal Year | 38 | |||
2021 | 26 | |||
2022 | 23 | |||
2023 | 21 | |||
2024 | 20 | |||
Thereafter | 186 | |||
Total | 314 | |||
Imputed interest of operating leases | (96) | |||
Total Leases, Future Minimum Payments due remainder of the year | 64 | |||
Total Leases, Future Minimum Payments due in Two Years | 51 | |||
Total Leases, Future Minimum Payments due in Three Years | 48 | |||
Total Leases, Future Minimum Payments due in Four Years | 46 | |||
Total Leases, Future Minimum Payments due in Five Years | 43 | |||
Total Leases, Future Minimum Payments due Thereafter | 294 | |||
Total Lease Payments Due | 546 | |||
Imputed interest on lease liabilities | (147) | |||
Lease Liability, Total | $ 399 | |||
Area of lease (in sqft) | ft² | 1 | |||
Initial term of lease | 15 years | |||
Minimum base rent | $ 6 | |||
Maximum base rent | 8 | |||
Lessee Leasing Arrangements, Build to Suit, Amended Arrangement, Initial Amount Due | 10 | |||
Lessee Leasing Arrangements, Build to Suit, Amended Arrangement, Installment Payment | $ 12 | |||
Lessee Leasing Arrangements, Build to Suit, Amended Arrangement, Payment Term | 13 years | |||
Property and equipment useful life | 20 years | |||
ECDC [Member] | ||||
Operating leases | ||||
Operating Lease, Liability | $ 131 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 141 | |||
Area of lease (in sqft) | ft² | 1.7 | |||
Initial term of lease | 15 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 | |||
Term of lease extensions | 5 years | |||
Lessee Leasing Arrangements, Operating Lease, Number of Four Year Extension Options | 1 | |||
Lessee, Operating Lease, Final Renewal Term | 4 years | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 14 years |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net revenue | $ 3,467 | $ 2,504 | $ 2,514 | $ 2,501 | $ 3,555 | $ 2,569 | $ 2,556 | $ 2,602 | $ 10,986 | $ 11,282 | $ 8,771 |
Cost of Goods and Services Sold | 7,148 | 7,248 | 5,598 | ||||||||
Operating | 768 | 881 | 601 | ||||||||
Operating Expenses | 9,659 | 9,770 | 7,462 | ||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 1,128 | 1,200 | 744 | ||||||||
Income Tax Expense (Benefit) | 262 | 334 | 139 | ||||||||
Net income | 225 | $ 188 | $ 218 | $ 186 | 291 | $ 181 | $ 244 | $ 212 | 817 | 928 | 947 |
Customer returns | 2,138 | 2,213 | $ 1,811 | ||||||||
Prepaid Expense | 116 | 116 | |||||||||
Allowance for sales returns | $ 238 | $ 242 | $ 238 | 242 | |||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net revenue | 11,143 | ||||||||||
Cost of Goods and Services Sold | 7,238 | ||||||||||
Operating Expenses | 879 | ||||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 1,082 | ||||||||||
Income Tax Expense (Benefit) | 332 | ||||||||||
Net income | 921 | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net revenue | 139 | ||||||||||
Cost of Goods and Services Sold | 10 | ||||||||||
Operating Expenses | 2 | ||||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 118 | ||||||||||
Income Tax Expense (Benefit) | 2 | ||||||||||
Net income | $ 7 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | $ 3,467 | $ 2,504 | $ 2,514 | $ 2,501 | $ 3,555 | $ 2,569 | $ 2,556 | $ 2,602 | $ 10,986 | $ 11,282 | $ 8,771 |
Home [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 3,952 | 4,198 | |||||||||
Beauty [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 1,958 | 1,966 | |||||||||
Apparel [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 1,711 | 1,776 | |||||||||
Accessories [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 1,294 | 1,206 | |||||||||
Electronics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 1,248 | 1,248 | |||||||||
Jewelry [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 628 | 686 | |||||||||
Other revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 195 | 202 | |||||||||
QxH | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 8,277 | 8,544 | 6,140 | ||||||||
QxH | Home [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 3,047 | 3,175 | |||||||||
QxH | Beauty [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 1,299 | 1,326 | |||||||||
QxH | Apparel [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 1,289 | 1,323 | |||||||||
QxH | Accessories [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 918 | 933 | |||||||||
QxH | Electronics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 1,141 | 1,129 | |||||||||
QxH | Jewelry [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 402 | 473 | |||||||||
QxH | Other revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 181 | 185 | |||||||||
QVC-International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 2,709 | 2,738 | $ 2,631 | ||||||||
QVC-International | Home [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 905 | 1,023 | |||||||||
QVC-International | Beauty [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 659 | 640 | |||||||||
QVC-International | Apparel [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 422 | 453 | |||||||||
QVC-International | Accessories [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 376 | 273 | |||||||||
QVC-International | Electronics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 107 | 119 | |||||||||
QVC-International | Jewelry [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 226 | 213 | |||||||||
QVC-International | Other revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | $ 14 | $ 17 |
Revenue Valuation Allowances an
Revenue Valuation Allowances and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 119 | |||
Sales Returns and Allowances [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 238 | $ 242 | 243 | $ 93 |
Additions- charged to earnings | 2,138 | 2,213 | 982 | |
Deductions | $ (2,142) | (2,214) | (979) | |
Business Combination [Domain] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 23 | |||
HSN, Inc. | Sales Returns and Allowances [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | $ 0 |
Stock Options and Other Share_3
Stock Options and Other Share-Based Awards Stock Options and Other Share- Based Awards (Stock Options Activity) (Details) - Liberty Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Exercisable at December 31, 2018 | |||
Intrinsic value of options exercised during period | $ 2,000 | $ 20,000 | $ 32,000 |
QRTEA | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of the year (in shares) | 14,653,589 | ||
Granted (in shares) | 2,217,707 | ||
Exercised (in shares) | (335,581) | ||
Forfeited (in shares) | (3,491,762) | ||
Outstanding at end of the year (in shares) | 13,043,953 | 14,653,589 | |
Weight average exercise price | |||
Outstanding at beginning of year (in dollars per share) | $ 24.46 | ||
Granted (in dollars per share) | 12.59 | ||
Exercised (in dollars per share) | 16.34 | ||
Forfeited (in dollars per share) | 21.35 | ||
Outstanding at ending of year (in dollars per share) | $ 23.49 | $ 24.46 | |
Additional Stock Option Disclosures | |||
Aggregate intrinsic value (000s) | $ 8,353 | ||
Weighted average remaining life (years) | 4 years | 4 years 5 months | |
Exercisable at December 31, 2018 | |||
Options (in shares) | 7,636,365 | ||
Weighted average exercise price (in dollars per share) | $ 25.05 | ||
Weighted average remaining life (years) | 3 years 2 months | ||
Weighted average grant date fair value of options granted during period | $ 4.08 | $ 8.52 | $ 7.86 |
Stock Options and Other Share_4
Stock Options and Other Share-Based Awards Stock Options and Other Share-Based Awards (Stock Options Valuations Assumptions) (Details) - Liberty Incentive Plan - QRTEA - Stock options | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Black- Scholes option pricing model valuation assumptions | |||
Expected volatility | 30.10% | 29.70% | 30.30% |
Expected term (years) | 5 years 8 months | 5 years 2 months | 5 years 11 months |
Risk free interest rate | 2.20% | 2.70% | 2.10% |
Stock Options and Other Share_5
Stock Options and Other Share-Based Awards Stock Options and Other Share-Based Awards (Restricted Stock Activity) (Details) - Liberty Incentive Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
QRTEA | |||
Weighted average grant fair value | |||
Outstanding at beginning of the year (in dollars per share) | $ 25.42 | ||
Granted (in dollars per share) | 16.83 | $ 26.23 | $ 22.49 |
Vested (in dollars per share) | 25.95 | ||
Forfeited (in dollars per share) | 21.81 | ||
Outstanding at end of the year (in dollars per share) | $ 19.45 | $ 25.42 | |
QRTEA [Member] | |||
Restricted shares | |||
Outstanding at beginning of the year (in shares) | 1,599,293 | ||
Granted (in shares) | 1,844,889 | ||
Vested | (598,233) | ||
Forfeited (in shares) | (344,814) | ||
Outstanding at end of the year (in shares) | 2,501,135 | 1,599,293 |
Stock Options and Other Share_6
Stock Options and Other Share-Based Awards Stock Options and Other Share- Based Awards (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 39 | $ 46 | $ 39 |
Liberty Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to options | $ 28 | ||
Unrecognized compensation cost, period for recognition | 2 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 16 | 37 | 10 |
Liberty Incentive Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 22 | 28 | 29 |
Liberty Incentive Plan | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 17 | $ 18 | $ 10 |
Unrecognized compensation cost, period for recognition | 2 years 7 months | ||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 31 | ||
Liberty Incentive Plan | QRTEA | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 16.83 | $ 26.23 | $ 22.49 |
HSN, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Ownership Percentage by Parent | 100.00% |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
U.S. federal | $ 141 | $ 239 | $ 352 |
State and local | 37 | 37 | 27 |
Foreign jurisdictions | 93 | 84 | 87 |
Total | 271 | 360 | 466 |
Deferred: | |||
U.S. federal | (11) | (27) | (320) |
State and local | 3 | (2) | (7) |
Foreign jurisdictions | (1) | 3 | 0 |
Total | (9) | (26) | (327) |
Total income tax expense | $ 262 | $ 334 | $ 139 |
Income Taxes Income Taxes (Pre-
Income Taxes Income Taxes (Pre-tax Income, Domestic and Foreign) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Consolidated pre- tax income | $ 1,079 | $ 1,262 | $ 1,086 |
QxH | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
U.S. pre-tax income | 843 | 1,062 | 877 |
QVC-International | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Foreign pre- tax income | $ 236 | $ 200 | $ 209 |
Income Taxes Income Taxes (Effe
Income Taxes Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation, Percent [Abstract] | |||
Provision at statutory rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | 2.90% | 2.20% | 1.00% |
Foreign taxes | 1.00% | 0.80% | 0.00% |
Effective Income Tax Rate Reconciliation, Write-off of investment and Notes, Percent | (3.10%) | 0.00% | 0.00% |
Valuation allowance | 3.20% | 2.60% | 1.00% |
Permanent differences | (0.20%) | (0.20%) | (2.20%) |
Impact of Tax Cuts and Jobs Act | 0 | 0 | (0.26) |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 0.90% | 0.60% | 4.00% |
Impact of foreign currency tax regulation | (0.70%) | (0.60%) | 0.40% |
Other, net | (0.70%) | 0.10% | (0.40%) |
Total income tax expense | 24.30% | 26.50% | 12.80% |
Income Taxes Income Taxes (Defe
Income Taxes Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts | $ 31 | $ 29 |
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 | 38 | 33 |
Allowance for sales returns | 30 | 31 |
Deferred Tax Assets, Deferred Income | 6 | 15 |
Deferred compensation | 38 | 39 |
Unrecognized federal and state tax benefits | 13 | 10 |
Operating Loss Carryforwards | 57 | 49 |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 43 | 17 |
Deferred Tax Assets, Leasing Arrangements | 68 | 0 |
Accrued liabilities | 15 | 33 |
Other | 8 | 5 |
Subtotal | 347 | 261 |
Valuation allowance | (99) | (64) |
Total deferred tax assets | 248 | 197 |
Deferred tax liabilities: | ||
Depreciation and amortization | (823) | (840) |
Deferred Tax Liabilities, Leasing Arrangements | (66) | 0 |
Cumulative translation of foreign currencies | (22) | (16) |
Deferred tax liability, Investment in Subsidiaries | (26) | (41) |
Deferred Tax Liabilities, Gross | 937 | 897 |
Net deferred tax liability | $ (689) | $ (700) |
Income Taxes Income Taxes (Reco
Income Taxes Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at December 31, 2018 | $ 54 | $ 53 |
Increases related to prior year tax positions | 9 | 1 |
Decreases related to prior year tax positions | (7) | (9) |
Decreases related to settlements with taxing authorities | (4) | 0 |
Increases related to current year tax positions | 8 | 9 |
Balance at December 31, 2019 | $ 60 | $ 54 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Gross | $ 35 | ||
Deferred Tax Liabilities, Domestic Jurisdiction | (724) | ||
Deferred Tax Liabilities, Gross | $ 937 | $ 897 | |
Provision at statutory rate | 21.00% | 21.00% | 35.00% |
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | $ 282 | ||
Unrecognized tax benefits that would impact effective tax rate | $ 48 | ||
Federal tax effect on unrecognized tax benefits | 12 | ||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 2 | ||
UNITED STATES | |||
Income Tax Contingency [Line Items] | |||
Provision at statutory rate | 21.00% | 35.00% | |
Liberty | Tax Agreement | |||
Income Tax Contingency [Line Items] | |||
Cash dividends paid to parent company for taxes | 11 | ||
Capital contribution paid to parent company for taxes | $ 2 | $ 31 | |
Qurate | Tax Agreement | |||
Income Tax Contingency [Line Items] | |||
Due from Affiliates | $ 7 | ||
Current tax payments due to related parties | $ (26) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 04, 2020 | Jun. 23, 2016 | |
Related Party Transaction [Line Items] | |||||
Line of credit facility maximum borrowing capacity | $ 3,650 | $ 2,650 | |||
Letters of Credit Outstanding, Amount | 12 | $ 13 | |||
QVC to Zulily allocated expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amounts of transactions | 7 | 5 | $ 4 | ||
Zulily to QVC allocated expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amounts of transactions | 9 | 6 | $ 5 | ||
QVC to CBI Allocated Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Party | 28 | 50 | |||
CBI to QVC allocated expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Party | 1 | $ 5 | |||
Cornerstone Brands Inc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Repayments of Related Party Debt | 29 | ||||
zulily, llc | |||||
Related Party Transaction [Line Items] | |||||
Letters of Credit Outstanding, Amount | 9 | ||||
QVC [Member] | Senior secured credit facility | |||||
Related Party Transaction [Line Items] | |||||
Line of credit facility maximum borrowing capacity | 3,250 | 2,250 | |||
Tranche One, Shared with Related Party [Member] | Senior secured credit facility | |||||
Related Party Transaction [Line Items] | |||||
Line of credit facility maximum borrowing capacity | 400 | $ 400 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 130 | ||||
Subsequent Event [Member] | |||||
Related Party Transaction [Line Items] | |||||
Line of credit facility maximum borrowing capacity | $ 2,950 | ||||
Subsequent Event [Member] | QVC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Line of credit facility maximum borrowing capacity | $ 2,550 |
Assets and Liabilities Measur_3
Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Derivative Asset, Current | $ 1 | |
Recurring | ||
Current assets: | ||
Cash equivalents | $ 272 | 267 |
Derivative Asset, Current | 0 | 5 |
Long-term liabilities: | ||
Debt (note 8) | 5,116 | 4,758 |
Derivative Liability | 0 | |
Recurring | Level 1 | ||
Current assets: | ||
Cash equivalents | 272 | 267 |
Long-term liabilities: | ||
Debt (note 8) | 760 | 189 |
Derivative Liability | 0 | |
Recurring | Level 2 | ||
Current assets: | ||
Derivative Asset, Current | 0 | 5 |
Long-term liabilities: | ||
Debt (note 8) | 4,356 | $ 4,569 |
Derivative Liability | $ 0 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $ 3,467 | $ 2,504 | $ 2,514 | $ 2,501 | $ 3,555 | $ 2,569 | $ 2,556 | $ 2,602 | $ 10,986 | $ 11,282 | $ 8,771 |
Adjusted OIBDA | 1,982 | 2,059 | 1,906 | ||||||||
QxH | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 8,277 | 8,544 | 6,140 | ||||||||
Adjusted OIBDA | 1,536 | 1,630 | 1,455 | ||||||||
QVC-International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 2,709 | 2,738 | 2,631 | ||||||||
Adjusted OIBDA | $ 446 | $ 429 | $ 451 |
Information about QVC's Opera_4
Information about QVC's Operating Segments (Depreciation/Amortization by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Depreciation | $ 186 | $ 174 | $ 155 |
Amortization | 282 | 237 | 364 |
QxH | |||
Segment Reporting Information [Line Items] | |||
Depreciation | 113 | 118 | 93 |
Amortization | 269 | 227 | 330 |
QVC-International | |||
Segment Reporting Information [Line Items] | |||
Depreciation | 73 | 56 | 62 |
Amortization | $ 13 | $ 10 | $ 34 |
Information about QVC's Opera_5
Information about QVC's Operating Segments (Total Assets and CAPEX by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total assets | $ 14,927 | $ 14,856 |
Capital expenditures | 291 | 228 |
QxH | ||
Segment Reporting Information [Line Items] | ||
Total assets | 12,659 | 12,702 |
Capital expenditures | 257 | 161 |
QVC-International | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,268 | 2,154 |
Capital expenditures | $ 34 | $ 67 |
Information about QVC's Opera_6
Information about QVC's Operating Segments (Long-lived Assets by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total assets | $ 14,927 | $ 14,856 |
Capital expenditures | 291 | 228 |
Property and equipment, net | 1,215 | 1,165 |
QxH | ||
Segment Reporting Information [Line Items] | ||
Total assets | 12,659 | 12,702 |
Capital expenditures | 257 | 161 |
Property and equipment, net | 800 | 712 |
QVC-International | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,268 | 2,154 |
Capital expenditures | 34 | 67 |
Property and equipment, net | $ 415 | $ 453 |
Information about QVC's Opera_7
Information about QVC's Operating Segments (Reconciliation of Adjusted OIBDA to Income before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||||||||||
Adjusted OIBDA | $ 1,982 | $ 2,059 | $ 1,906 | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | (147) | (30) | 0 | ||||||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | (1) | (60) | (39) | ||||||||
Stock-based compensation | (39) | (46) | (39) | ||||||||
Depreciation and amortization | (468) | (411) | (519) | ||||||||
Operating income | $ 306 | $ 330 | $ 365 | $ 326 | $ 461 | $ 305 | $ 390 | $ 356 | 1,327 | 1,512 | 1,309 |
Equity in losses of investee | 0 | (3) | (3) | ||||||||
Losses on financial instruments | (5) | (2) | 0 | ||||||||
Interest expense, net | (240) | (243) | (214) | ||||||||
Foreign currency loss | (3) | 0 | (6) | ||||||||
Loss on extinguishment of debt | 0 | (2) | 0 | ||||||||
Income before income taxes | $ 1,079 | $ 1,262 | $ 1,086 |
Information about QVC's Opera_8
Information about QVC's Operating Segments (Net Revenue by Geographical Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers | |||||||||||
Net revenue | $ 3,467 | $ 2,504 | $ 2,514 | $ 2,501 | $ 3,555 | $ 2,569 | $ 2,556 | $ 2,602 | $ 10,986 | $ 11,282 | $ 8,771 |
QxH | |||||||||||
Revenues from External Customers | |||||||||||
Net revenue | 8,277 | 8,544 | 6,140 | ||||||||
Japan | |||||||||||
Revenues from External Customers | |||||||||||
Net revenue | 1,028 | 947 | 934 | ||||||||
Germany | |||||||||||
Revenues from External Customers | |||||||||||
Net revenue | 890 | 943 | 899 | ||||||||
United Kingdom | |||||||||||
Revenues from External Customers | |||||||||||
Net revenue | 640 | 679 | 640 | ||||||||
Other countries | |||||||||||
Revenues from External Customers | |||||||||||
Net revenue | $ 151 | $ 169 | $ 158 |
Information about QVC's Opera_9
Information about QVC's Operating Segments (Property and Equipment By Geographical Area) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property and equipment [Line Items] | ||
Property and equipment, net | $ 1,215 | $ 1,165 |
QxH | ||
Property and equipment [Line Items] | ||
Property and equipment, net | 800 | 712 |
Germany | ||
Property and equipment [Line Items] | ||
Property and equipment, net | 154 | 161 |
Japan | ||
Property and equipment [Line Items] | ||
Property and equipment, net | 153 | 165 |
United Kingdom | ||
Property and equipment [Line Items] | ||
Property and equipment, net | 75 | 77 |
Other countries | ||
Property and equipment [Line Items] | ||
Property and equipment, net | $ 33 | $ 50 |
Information about QVC's Oper_10
Information about QVC's Operating Segments Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
QVC-International | |||
Segment Reporting Information [Line Items] | |||
Segment Cost Allocation | $ 27 | $ 39 | $ 36 |
Other Comprehensive Income (Acc
Other Comprehensive Income (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign currency translation adjustments | |||
Beginning balance | $ (144) | $ (93) | $ (224) |
Other comprehensive income attributable to QVC, Inc. stockholder | 0 | (51) | 131 |
Ending balance | (144) | (144) | (93) |
AOCL | |||
Beginning balance | (144) | (93) | (224) |
Other comprehensive income attributable to QVC, Inc. stockholder | 0 | (51) | 131 |
Ending balance | $ (144) | $ (144) | $ (93) |
Other Comprehensive Income (Com
Other Comprehensive Income (Component of Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments before tax | $ 0 | $ (49) | $ 156 |
Tax (expense) benefit from foreign currency translation gain (loss) | 1 | 1 | (21) |
Foreign currency translation adjustments, net-of-tax | $ 1 | $ (48) | $ 135 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Cash contributions to defined contribution plans | $ 21 | $ 22 | $ 18 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 2 Months Ended | ||
Feb. 26, 2020 | Feb. 04, 2020 | Dec. 31, 2019 | |
Subsequent Event [Line Items] | |||
Line of credit facility remaining borrowing capacity | $ 2,392 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Line of credit facility remaining borrowing capacity | $ 1,692 | ||
Qurate | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Dividends declared to parent company | $ 122 | ||
Tranche One, Shared with Related Party [Member] | Senior secured credit facility | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Line of credit facility remaining borrowing capacity | $ 175 |
Guarantor_Non-Guarantor Subsi_3
Guarantor/Non-Guarantor Subsidiary Financial Information (Narrative) (Details) | Dec. 31, 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 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | |||||
Cash and cash equivalents | $ 561 | $ 543 | |||
Restricted cash | 8 | 7 | |||
Accounts receivable, net | 1,813 | 1,787 | |||
Inventories | 1,214 | 1,280 | |||
Prepaid expenses and other current assets | 184 | 216 | |||
Total current assets | 3,780 | 3,833 | |||
Property and equipment, net | 1,215 | 1,165 | |||
Operating Lease, Right-of-Use Asset | 214 | $ 92 | 0 | ||
Television Distribution Rights, Net | 140 | 140 | |||
Goodwill | 5,971 | 5,972 | $ 5,979 | ||
Other intangible assets, net | 3,498 | 3,666 | |||
Other noncurrent assets | 109 | 80 | |||
Investments in subsidiaries | 0 | 0 | |||
Total assets | 14,927 | 14,856 | |||
Current liabilities: | |||||
Current portion of debt and finance lease obligations | 18 | 421 | |||
Accounts payable-trade | 913 | 1,008 | |||
Accrued liabilities | 1,045 | 1,026 | |||
Intercompany accounts payable (receivable) | 0 | 0 | |||
Total current liabilities | 1,976 | 2,455 | |||
Long-term portion of debt and finance lease obligations | 5,101 | 4,699 | |||
Deferred income taxes | 724 | 700 | |||
Other long-term liabilities | 322 | 173 | |||
Total liabilities | 8,123 | 8,027 | |||
QVC, Inc. stockholder's equity: | |||||
QVC, Inc. stockholder's equity | 6,674 | 6,710 | |||
Noncontrolling interest | 130 | 119 | |||
Total equity | 6,804 | 6,829 | $ 5,796 | $ 3,895 | |
Total liabilities and equity | 14,927 | 14,856 | |||
Parent issuer- QVC, Inc. | |||||
Current assets: | |||||
Cash and cash equivalents | 37 | 73 | |||
Restricted cash | 5 | 5 | |||
Accounts receivable, net | 1,169 | 1,166 | |||
Inventories | 711 | 725 | |||
Prepaid expenses and other current assets | 105 | 95 | |||
Total current assets | 2,027 | 2,064 | |||
Property and equipment, net | 264 | 281 | |||
Operating Lease, Right-of-Use Asset | 2 | ||||
Television Distribution Rights, Net | 0 | 0 | |||
Goodwill | 4,190 | 4,190 | |||
Other intangible assets, net | 560 | 529 | |||
Other noncurrent assets | 18 | 8 | |||
Investments in subsidiaries | 5,747 | 5,523 | |||
Total assets | 12,808 | 12,595 | |||
Current liabilities: | |||||
Current portion of debt and finance lease obligations | 2 | 403 | |||
Accounts payable-trade | 477 | 494 | |||
Accrued liabilities | 311 | 358 | |||
Intercompany accounts payable (receivable) | 181 | (95) | |||
Total current liabilities | 971 | 1,160 | |||
Long-term portion of debt and finance lease obligations | 4,945 | 4,540 | |||
Deferred income taxes | 98 | 63 | |||
Other long-term liabilities | 120 | 122 | |||
Total liabilities | 6,134 | 5,885 | |||
QVC, Inc. stockholder's equity: | |||||
QVC, Inc. stockholder's equity | 6,674 | 6,710 | |||
Noncontrolling interest | 0 | 0 | |||
Total equity | 6,674 | 6,710 | |||
Total liabilities and equity | 12,808 | 12,595 | |||
Combined subsidiary guarantors | |||||
Current assets: | |||||
Cash and cash equivalents | 192 | 192 | |||
Restricted cash | 0 | 0 | |||
Accounts receivable, net | 300 | 307 | |||
Inventories | 258 | 310 | |||
Prepaid expenses and other current assets | 32 | 73 | |||
Total current assets | 782 | 882 | |||
Property and equipment, net | 245 | 213 | |||
Operating Lease, Right-of-Use Asset | 15 | ||||
Television Distribution Rights, Net | 139 | 139 | |||
Goodwill | 922 | 922 | |||
Other intangible assets, net | 2,909 | 3,116 | |||
Other noncurrent assets | 12 | 20 | |||
Investments in subsidiaries | 932 | 885 | |||
Total assets | 5,956 | 6,177 | |||
Current liabilities: | |||||
Current portion of debt and finance lease obligations | 1 | 1 | |||
Accounts payable-trade | 181 | 201 | |||
Accrued liabilities | 402 | 394 | |||
Intercompany accounts payable (receivable) | (1,356) | (1,015) | |||
Total current liabilities | (772) | (419) | |||
Long-term portion of debt and finance lease obligations | 5 | 6 | |||
Deferred income taxes | 653 | 695 | |||
Other long-term liabilities | 16 | 34 | |||
Total liabilities | (98) | 316 | |||
QVC, Inc. stockholder's equity: | |||||
QVC, Inc. stockholder's equity | 6,054 | 5,861 | |||
Noncontrolling interest | 0 | 0 | |||
Total equity | 6,054 | 5,861 | |||
Total liabilities and equity | 5,956 | 6,177 | |||
Combined non-guarantor subsidiaries | |||||
Current assets: | |||||
Cash and cash equivalents | 332 | 278 | |||
Restricted cash | 3 | 2 | |||
Accounts receivable, net | 344 | 314 | |||
Inventories | 245 | 245 | |||
Prepaid expenses and other current assets | 47 | 48 | |||
Total current assets | 971 | 887 | |||
Property and equipment, net | 706 | 671 | |||
Operating Lease, Right-of-Use Asset | 197 | ||||
Television Distribution Rights, Net | 1 | 1 | |||
Goodwill | 859 | 860 | |||
Other intangible assets, net | 29 | 21 | |||
Other noncurrent assets | 79 | 52 | |||
Investments in subsidiaries | 0 | 0 | |||
Total assets | 2,842 | 2,492 | |||
Current liabilities: | |||||
Current portion of debt and finance lease obligations | 15 | 17 | |||
Accounts payable-trade | 255 | 313 | |||
Accrued liabilities | 332 | 274 | |||
Intercompany accounts payable (receivable) | 1,175 | 1,110 | |||
Total current liabilities | 1,777 | 1,714 | |||
Long-term portion of debt and finance lease obligations | 151 | 153 | |||
Deferred income taxes | (27) | (58) | |||
Other long-term liabilities | 186 | 17 | |||
Total liabilities | 2,087 | 1,826 | |||
QVC, Inc. stockholder's equity: | |||||
QVC, Inc. stockholder's equity | 625 | 547 | |||
Noncontrolling interest | 130 | 119 | |||
Total equity | 755 | 666 | |||
Total liabilities and equity | 2,842 | 2,492 | |||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||||
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 | (6,679) | (6,408) | |||
Total assets | (6,679) | (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 | (6,679) | (6,408) | |||
Noncontrolling interest | 0 | 0 | |||
Total equity | (6,679) | (6,408) | |||
Total liabilities and equity | $ (6,679) | $ (6,408) |
Guarantor_Non-Guarantor Subsi_5
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net revenue | $ 3,467 | $ 2,504 | $ 2,514 | $ 2,501 | $ 3,555 | $ 2,569 | $ 2,556 | $ 2,602 | $ 10,986 | $ 11,282 | $ 8,771 |
Cost of Goods and Services Sold | 7,148 | 7,248 | 5,598 | ||||||||
Operating | 768 | 881 | 601 | ||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 1,128 | 1,200 | 744 | ||||||||
Selling, General and Administrative Expense | 744 | ||||||||||
Depreciation | 186 | 174 | 155 | ||||||||
Amortization | 282 | 237 | 364 | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 147 | 30 | 0 | ||||||||
Operating Expenses | 9,659 | 9,770 | 7,462 | ||||||||
Operating costs and expenses: | |||||||||||
Operating income | 306 | 330 | 365 | 326 | 461 | 305 | 390 | 356 | 1,327 | 1,512 | 1,309 |
Other (expense) income: | |||||||||||
Equity in losses of investee | 0 | (3) | (3) | ||||||||
Losses on financial instruments | (5) | (2) | 0 | ||||||||
Interest expense, net | (240) | (243) | (214) | ||||||||
Foreign currency loss | (3) | 0 | (6) | ||||||||
Loss on extinguishment of debt | 0 | (2) | 0 | ||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | ||||||||
Nonoperating expense | (248) | (250) | (223) | ||||||||
Income before income taxes | 1,079 | 1,262 | 1,086 | ||||||||
Income tax expense | (262) | (334) | (139) | ||||||||
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | ||||||||
Net income | 225 | 188 | 218 | 186 | 291 | 181 | 244 | 212 | 817 | 928 | 947 |
Less net income attributable to the noncontrolling interest | (50) | (46) | (46) | ||||||||
Net income attributable to QVC, Inc. stockholder | $ 211 | $ 174 | $ 206 | $ 176 | $ 278 | $ 170 | $ 233 | $ 201 | 767 | 882 | 901 |
Parent issuer- QVC, Inc. | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net revenue | 6,236 | 6,502 | 6,298 | ||||||||
Cost of Goods and Services Sold | 3,879 | 3,979 | 3,877 | ||||||||
Operating | 441 | 442 | 433 | ||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 1,225 | 1,252 | |||||||||
Selling, General and Administrative Expense | 1,097 | ||||||||||
Depreciation | 63 | 65 | 67 | ||||||||
Amortization | 71 | 79 | 187 | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | |||||||||
Operating Expenses | 5,679 | 5,817 | 5,661 | ||||||||
Operating costs and expenses: | |||||||||||
Operating income | 557 | 685 | 637 | ||||||||
Other (expense) income: | |||||||||||
Equity in losses of investee | 0 | 0 | |||||||||
Losses on financial instruments | (5) | (1) | |||||||||
Interest expense, net | (236) | (223) | (215) | ||||||||
Foreign currency loss | (1) | 2 | (5) | ||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Intercompany interest income (expense) | (28) | 34 | 12 | ||||||||
Nonoperating expense | (214) | (256) | (232) | ||||||||
Income before income taxes | 343 | 429 | 405 | ||||||||
Income tax expense | (102) | (127) | (129) | ||||||||
Equity in earnings of subsidiaries, net of tax | 576 | 626 | 671 | ||||||||
Net income | 817 | 928 | 947 | ||||||||
Less net income attributable to the noncontrolling interest | (50) | (46) | (46) | ||||||||
Net income attributable to QVC, Inc. stockholder | 767 | 882 | 901 | ||||||||
Combined subsidiary guarantors | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net revenue | 3,094 | 3,185 | 1,000 | ||||||||
Cost of Goods and Services Sold | 1,593 | 1,617 | 157 | ||||||||
Operating | 416 | 533 | 265 | ||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 215 | 282 | |||||||||
Selling, General and Administrative Expense | 40 | ||||||||||
Depreciation | 35 | 37 | 7 | ||||||||
Amortization | 199 | 147 | 142 | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 147 | 30 | |||||||||
Operating Expenses | 2,605 | 2,646 | 611 | ||||||||
Operating costs and expenses: | |||||||||||
Operating income | 489 | 539 | 389 | ||||||||
Other (expense) income: | |||||||||||
Equity in losses of investee | 0 | 0 | |||||||||
Losses on financial instruments | 0 | (1) | |||||||||
Interest expense, net | 4 | (15) | 1 | ||||||||
Foreign currency loss | 0 | 0 | 1 | ||||||||
Loss on extinguishment of debt | (2) | ||||||||||
Intercompany interest income (expense) | (40) | (151) | (96) | ||||||||
Nonoperating expense | 44 | 133 | 98 | ||||||||
Income before income taxes | 533 | 672 | 487 | ||||||||
Income tax expense | (68) | (121) | 93 | ||||||||
Equity in earnings of subsidiaries, net of tax | 37 | 50 | 47 | ||||||||
Net income | 502 | 601 | 627 | ||||||||
Less net income attributable to the noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to QVC, Inc. stockholder | 502 | 601 | 627 | ||||||||
Combined non-guarantor subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net revenue | 2,938 | 2,964 | 2,848 | ||||||||
Cost of Goods and Services Sold | 1,826 | 1,832 | 1,744 | ||||||||
Operating | 279 | 288 | 277 | ||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 452 | 473 | |||||||||
Selling, General and Administrative Expense | 428 | ||||||||||
Depreciation | 88 | 72 | 81 | ||||||||
Amortization | 12 | 11 | 35 | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | |||||||||
Operating Expenses | 2,657 | 2,676 | 2,565 | ||||||||
Operating costs and expenses: | |||||||||||
Operating income | 281 | 288 | 283 | ||||||||
Other (expense) income: | |||||||||||
Equity in losses of investee | (3) | (3) | |||||||||
Losses on financial instruments | 0 | 0 | |||||||||
Interest expense, net | (8) | (5) | 0 | ||||||||
Foreign currency loss | (2) | (2) | (2) | ||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Intercompany interest income (expense) | 68 | 117 | 84 | ||||||||
Nonoperating expense | (78) | (127) | (89) | ||||||||
Income before income taxes | 203 | 161 | 194 | ||||||||
Income tax expense | (92) | (86) | (103) | ||||||||
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | ||||||||
Net income | 111 | 75 | 91 | ||||||||
Less net income attributable to the noncontrolling interest | (50) | (46) | (46) | ||||||||
Net income attributable to QVC, Inc. stockholder | 61 | 29 | 45 | ||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net revenue | (1,282) | (1,369) | (1,375) | ||||||||
Cost of Goods and Services Sold | (150) | (180) | (180) | ||||||||
Operating | (368) | (382) | (374) | ||||||||
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | (764) | (807) | |||||||||
Selling, General and Administrative Expense | (821) | ||||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Amortization | 0 | 0 | 0 | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | |||||||||
Operating Expenses | (1,282) | (1,369) | (1,375) | ||||||||
Operating costs and expenses: | |||||||||||
Operating income | 0 | 0 | 0 | ||||||||
Other (expense) income: | |||||||||||
Equity in losses of investee | 0 | 0 | |||||||||
Losses on financial instruments | 0 | 0 | |||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Foreign currency loss | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | ||||||||
Nonoperating expense | 0 | 0 | 0 | ||||||||
Income before income taxes | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries, net of tax | (613) | (676) | (718) | ||||||||
Net income | (613) | (676) | (718) | ||||||||
Less net income attributable to the noncontrolling interest | 50 | 46 | 46 | ||||||||
Net income attributable to QVC, Inc. stockholder | $ (563) | $ (630) | $ (672) |
Guarantor_Non-Guarantor Subsi_6
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ 225 | $ 188 | $ 218 | $ 186 | $ 291 | $ 181 | $ 244 | $ 212 | $ 817 | $ 928 | $ 947 |
Foreign currency translation adjustments, net of tax | 1 | (48) | 135 | ||||||||
Total comprehensive income | 818 | 880 | 1,082 | ||||||||
Comprehensive income attributable to noncontrolling interest | (51) | (49) | (50) | ||||||||
Comprehensive income attributable to QVC, Inc. stockholder | 767 | 831 | 1,032 | ||||||||
Parent issuer- QVC, Inc. | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 817 | 928 | 947 | ||||||||
Foreign currency translation adjustments, net of tax | 1 | (48) | 135 | ||||||||
Total comprehensive income | 818 | 880 | 1,082 | ||||||||
Comprehensive income attributable to noncontrolling interest | (51) | (49) | (50) | ||||||||
Comprehensive income attributable to QVC, Inc. stockholder | 767 | 831 | 1,032 | ||||||||
Combined subsidiary guarantors | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 502 | 601 | 627 | ||||||||
Foreign currency translation adjustments, net of tax | 0 | 0 | 0 | ||||||||
Total comprehensive income | 502 | 601 | 627 | ||||||||
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to QVC, Inc. stockholder | 502 | 601 | 627 | ||||||||
Combined non-guarantor subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 111 | 75 | 91 | ||||||||
Foreign currency translation adjustments, net of tax | 2 | (48) | 135 | ||||||||
Total comprehensive income | 113 | 27 | 226 | ||||||||
Comprehensive income attributable to noncontrolling interest | (51) | (49) | (50) | ||||||||
Comprehensive income attributable to QVC, Inc. stockholder | 62 | (22) | 176 | ||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | (613) | (676) | (718) | ||||||||
Foreign currency translation adjustments, net of tax | (2) | 48 | (135) | ||||||||
Total comprehensive income | (615) | (628) | (853) | ||||||||
Comprehensive income attributable to noncontrolling interest | 51 | 49 | 50 | ||||||||
Comprehensive income attributable to QVC, Inc. stockholder | $ (564) | $ (579) | $ (803) |
Guarantor_Non-Guarantor Subsi_7
Guarantor/Non-Guarantor Subsidiary Financial Information (Statement of Cash Flow) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | $ 1,322 | $ 1,156 | $ 1,202 | |
Decrease (increase) in inventories | ||||
Capital Expenditures, Net | 291 | 228 | 152 | |
Payments for Cable and Satellite Television Distribution Rights | 134 | 140 | 50 | |
Increase (Decrease) in Other Noncurrent Assets | 11 | 16 | 1 | |
Other investing activities | (29) | 29 | 0 | |
Other investing activities | 0 | 0 | 0 | |
Payments for (Proceeds from) Businesses and Interest in Affiliates | 0 | 0 | 22 | |
Investing activities: | (407) | (413) | (181) | |
Capital expenditures | ||||
Repayments of Debt and Lease Obligation | 2,599 | 3,541 | 2,278 | |
Proceeds from Long-term Lines of Credit | 2,496 | 2,750 | 2,162 | |
Repayments of Secured Debt | (400) | 0 | 0 | |
Proceeds from Issuance of Secured Debt | 500 | 225 | 0 | |
Payments of Debt Issuance Costs | 18 | 14 | 0 | |
Proceeds from Contributions from Parent | 50 | 520 | 0 | |
Payments of Dividends | (879) | (367) | (866) | |
Dividends paid to noncontrolling interest | 40 | 40 | 40 | |
Proceeds from (Payments for) Other Financing Activities | (4) | (18) | (16) | |
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | 0 | |
Other intercompany financing activities | 0 | 0 | 0 | |
Net Cash Provided by (Used in) Financing Activities | (894) | (485) | (1,038) | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (2) | 2 | 13 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 19 | 260 | (4) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 569 | 550 | 290 | $ 294 |
Parent issuer- QVC, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | 368 | 461 | 641 | |
Decrease (increase) in inventories | ||||
Capital Expenditures, Net | 127 | 121 | 103 | |
Payments for Cable and Satellite Television Distribution Rights | 0 | 0 | 0 | |
Increase (Decrease) in Other Noncurrent Assets | 11 | (1) | 1 | |
Other investing activities | 0 | 0 | ||
Other investing activities | (319) | (433) | (545) | |
Payments for (Proceeds from) Businesses and Interest in Affiliates | 0 | |||
Investing activities: | 181 | 313 | 441 | |
Capital expenditures | ||||
Repayments of Debt and Lease Obligation | 2,586 | 2,680 | 2,268 | |
Proceeds from Long-term Lines of Credit | 2,496 | 2,362 | 2,162 | |
Repayments of Secured Debt | (400) | |||
Proceeds from Issuance of Secured Debt | 500 | 225 | ||
Payments of Debt Issuance Costs | 18 | 14 | ||
Proceeds from Contributions from Parent | 50 | 340 | ||
Payments of Dividends | (877) | (367) | (866) | |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | |
Proceeds from (Payments for) Other Financing Activities | (4) | (10) | (16) | |
Net short-term intercompany debt borrowings (repayments) | 276 | (548) | (170) | |
Other intercompany financing activities | (22) | (11) | 73 | |
Net Cash Provided by (Used in) Financing Activities | (585) | (703) | (1,085) | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (36) | 71 | (3) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 42 | 78 | 7 | 10 |
Combined subsidiary guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | 836 | 592 | 507 | |
Decrease (increase) in inventories | ||||
Capital Expenditures, Net | 65 | 19 | (4) | |
Payments for Cable and Satellite Television Distribution Rights | 134 | 139 | (50) | |
Increase (Decrease) in Other Noncurrent Assets | 2 | 4 | 0 | |
Other investing activities | (29) | 29 | ||
Other investing activities | 999 | 688 | (1,507) | |
Payments for (Proceeds from) Businesses and Interest in Affiliates | (22) | |||
Investing activities: | (1,171) | (879) | 1,539 | |
Capital expenditures | ||||
Repayments of Debt and Lease Obligation | 0 | 851 | 0 | |
Proceeds from Long-term Lines of Credit | 0 | 388 | 0 | |
Repayments of Secured Debt | 0 | |||
Proceeds from Issuance of Secured Debt | 0 | 0 | ||
Payments of Debt Issuance Costs | 0 | 0 | ||
Proceeds from Contributions from Parent | 0 | 180 | ||
Payments of Dividends | (2) | 0 | 0 | |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | |
Proceeds from (Payments for) Other Financing Activities | 0 | (8) | 0 | |
Net short-term intercompany debt borrowings (repayments) | (341) | 498 | (1,267) | |
Other intercompany financing activities | 678 | 217 | 2,257 | |
Net Cash Provided by (Used in) Financing Activities | 335 | 424 | 990 | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 137 | (42) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 192 | 192 | 55 | 97 |
Combined non-guarantor subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | 118 | 103 | 54 | |
Decrease (increase) in inventories | ||||
Capital Expenditures, Net | 99 | 88 | 45 | |
Payments for Cable and Satellite Television Distribution Rights | 0 | 1 | 0 | |
Increase (Decrease) in Other Noncurrent Assets | (2) | 13 | 0 | |
Other investing activities | 0 | 0 | ||
Other investing activities | 0 | 0 | 0 | |
Payments for (Proceeds from) Businesses and Interest in Affiliates | 0 | |||
Investing activities: | (97) | (102) | (45) | |
Capital expenditures | ||||
Repayments of Debt and Lease Obligation | 13 | 10 | 10 | |
Proceeds from Long-term Lines of Credit | 0 | 0 | 0 | |
Repayments of Secured Debt | 0 | |||
Proceeds from Issuance of Secured Debt | 0 | 0 | ||
Payments of Debt Issuance Costs | 0 | 0 | ||
Proceeds from Contributions from Parent | 0 | 0 | ||
Payments of Dividends | 0 | 0 | 0 | |
Dividends paid to noncontrolling interest | 40 | 40 | 40 | |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | |
Net short-term intercompany debt borrowings (repayments) | 65 | 50 | 1,437 | |
Other intercompany financing activities | 24 | 49 | (1,368) | |
Net Cash Provided by (Used in) Financing Activities | 36 | 49 | 19 | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (2) | 2 | 13 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 55 | 52 | 41 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 335 | 280 | 228 | 187 |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | 0 | 0 | 0 | |
Decrease (increase) in inventories | ||||
Capital Expenditures, Net | 0 | 0 | 0 | |
Payments for Cable and Satellite Television Distribution Rights | 0 | 0 | 0 | |
Increase (Decrease) in Other Noncurrent Assets | 0 | 0 | 0 | |
Other investing activities | 0 | 0 | ||
Other investing activities | (680) | (255) | (962) | |
Payments for (Proceeds from) Businesses and Interest in Affiliates | 0 | |||
Investing activities: | 680 | 255 | 962 | |
Capital expenditures | ||||
Repayments of Debt and Lease Obligation | 0 | 0 | 0 | |
Proceeds from Long-term Lines of Credit | 0 | 0 | 0 | |
Repayments of Secured Debt | 0 | |||
Proceeds from Issuance of Secured Debt | 0 | 0 | ||
Payments of Debt Issuance Costs | 0 | 0 | ||
Proceeds from Contributions from Parent | 0 | 0 | ||
Payments of Dividends | 0 | 0 | 0 | |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | |
Net short-term intercompany debt borrowings (repayments) | 0 | 0 | 0 | |
Other intercompany financing activities | (680) | (255) | (962) | |
Net Cash Provided by (Used in) Financing Activities | (680) | (255) | (962) | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 0 | $ 0 | $ 0 | $ 0 |
Quarterly Financial Informati_3
Quarterly Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenue | $ 3,467 | $ 2,504 | $ 2,514 | $ 2,501 | $ 3,555 | $ 2,569 | $ 2,556 | $ 2,602 | $ 10,986 | $ 11,282 | $ 8,771 |
Operating income | 306 | 330 | 365 | 326 | 461 | 305 | 390 | 356 | 1,327 | 1,512 | 1,309 |
Net income | 225 | 188 | 218 | 186 | 291 | 181 | 244 | 212 | 817 | 928 | 947 |
Net income attributable to QVC, Inc. stockholder | $ 211 | $ 174 | $ 206 | $ 176 | $ 278 | $ 170 | $ 233 | $ 201 | $ 767 | $ 882 | $ 901 |
Uncategorized Items - qvc-20191
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 13,000,000 |
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | qvc_CashCashEquivalentsandRestrictedCashBeginningofPeriod | 294,000,000 |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 13,000,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |