Cover
Cover | 3 Months Ended |
Mar. 31, 2021 | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2021 |
Document Transition Report | false |
Entity File Number | 001-38654 |
Entity Registrant Name | QVC, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 23-2414041 |
Entity Address, Address Line One | 1200 Wilson Drive |
Entity Address, City or Town | West Chester |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 19380 |
City Area Code | (484) |
Local Phone Number | 701-1000 |
Debt and Equity Securities, FV-NI [Line Items] | |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
6.375% Senior Secured Notes [Member] | |
Debt and Equity Securities, FV-NI [Line Items] | |
Title of 12(b) Security | 6.375% Senior Secured Notes due 2067 |
Trading Symbol | QVCD |
Security Exchange Name | NYSE |
6.25% Senior Secured Notes [Member] | |
Debt and Equity Securities, FV-NI [Line Items] | |
Title of 12(b) Security | 6.250% Senior Secured Notes due 2068 |
Trading Symbol | QVCC |
Security Exchange Name | NYSE |
Document and Entity Information
Document and Entity Information Document | 3 Months Ended |
Mar. 31, 2021shares | |
Document Information [Abstract] | |
Entity Registrant Name | QVC, Inc. |
Entity Central Index Key | 0001254699 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 1 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 638 | $ 682 |
Restricted cash | 8 | 8 |
Accounts Receivable, after Allowance for Credit Loss, Current | 1,211 | 1,602 |
Inventories | 1,171 | 1,119 |
Prepaid expenses and other current assets | 306 | 293 |
Total current assets | 3,334 | 3,704 |
Noncurrent assets: | ||
Property and equipment, net of accumulated depreciation of $1,392 at March 31, 2021 and $1,544 at December 31, 2020 | 1,106 | 1,178 |
Operating Lease, Right-of-Use Asset | 215 | 221 |
Television distribution rights, net (note 2) | 142 | 63 |
Goodwill (note 3) | 5,997 | 6,034 |
Other intangible assets, net (note 3) | 3,441 | 3,454 |
Note receivable - related party (note 1) | 1,825 | 1,825 |
Other noncurrent assets | 71 | 79 |
Total assets | 16,131 | 16,558 |
Current liabilities: | ||
Current portion of debt and finance lease obligations (note 5) | 458 | 410 |
Accounts payable-trade | 965 | 1,127 |
Accrued liabilities (note 4) | 1,043 | 1,302 |
Total current liabilities | 2,466 | 2,839 |
Noncurrent liabilities: | ||
Long-term portion of debt and finance lease obligations (note 5) | 4,545 | 4,549 |
Deferred Income Tax Liabilities, Net | 714 | 711 |
Other long-term liabilities | 313 | 324 |
Total liabilities | 8,038 | 8,423 |
QVC, Inc. stockholder's equity: | ||
Common stock, $0.01 par value, 1 authorized share | 0 | 0 |
Additional paid-in capital | 10,740 | 10,741 |
Accumulated deficit | (2,677) | (2,722) |
Accumulated other comprehensive loss | (95) | (17) |
Total QVC, Inc. stockholder's equity | 7,968 | 8,002 |
Noncontrolling interest | 125 | 133 |
Total equity | 8,093 | 8,135 |
Total liabilities and equity | $ 16,131 | $ 16,558 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 103 | $ 124 |
Accumulated depreciation | $ 1,392 | $ 1,544 |
Common stock par value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1 | 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | $ 2,710 | $ 2,427 |
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 1,758 | 1,584 |
Operating costs and expenses: | ||
Operating | 186 | 177 |
Selling, general and administrative, including transaction related costs and stock-based compensation | 283 | 282 |
Depreciation | 40 | 43 |
Amortization | 62 | 71 |
Operating expenses | 2,329 | 2,157 |
Operating income | 381 | 270 |
Other (expense) income: | ||
Equity in losses of investee | 0 | (1) |
Gain (Loss) on Derivative Instruments, Net, Pretax | 1 | (4) |
Interest expense, net | (63) | (65) |
Foreign currency (loss) gain | (2) | 1 |
Other Income | 6 | 0 |
Nonoperating Income (Expense) | (58) | (69) |
Income before income taxes | 323 | 201 |
Income tax expense | (85) | (60) |
Net income | 238 | 141 |
Less net income attributable to the noncontrolling interest | (16) | (12) |
Net income attributable to QVC, Inc. stockholder | $ 222 | $ 129 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income | $ 238 | $ 141 |
Foreign currency translation adjustments, net of tax | (73) | (22) |
Other Comprehensive Income Loss Credit Risk On Fair Value Debt Instruments Gain (Loss) Net Of Tax | (13) | 0 |
Total comprehensive income | 152 | 119 |
Comprehensive income attributable to noncontrolling interest | (8) | (13) |
Comprehensive income attributable to QVC, Inc. stockholder | $ 144 | $ 106 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income | $ 238 | $ 141 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in losses of investee | 0 | 1 |
Deferred income taxes | 3 | 2 |
Foreign currency (loss) gain | 2 | (1) |
Depreciation | 40 | 43 |
Amortization | 62 | 71 |
Change in fair value of financial instruments and noncash interest | (1) | 6 |
Stock-based compensation | 9 | 6 |
Change in other long-term liabilities | (1) | (4) |
Other Income | (6) | 0 |
Other non-cash charges, net | 10 | 7 |
Decrease in accounts receivable | 378 | 403 |
Increase in inventories | (60) | (4) |
Decrease in prepaid expenses and other current assets | 29 | 50 |
Decrease in accounts payable-trade | (151) | (198) |
Decrease in accrued liabilities and other | (305) | (213) |
Net cash provided by operating activities | 247 | 310 |
Investing activities: | ||
Capital expenditures | (41) | (39) |
Expenditures for television distribution rights | (56) | (1) |
Changes in other noncurrent assets | (1) | 3 |
Proceeds from Sales of Assets, Investing Activities | 40 | 0 |
Net cash used in investing activities | (58) | (37) |
Financing activities: | ||
Principal payments of debt and finance lease obligations | (143) | (872) |
Principal borrowings of debt from senior secured credit facility | 135 | 112 |
Proceeds from Issuance of Long-term Debt | 0 | 575 |
Payment of debt origination fees | 0 | (8) |
Dividends paid to noncontrolling interest | (16) | (15) |
Withholding taxes on net share settlements of stock-based compensation | (15) | (1) |
Net cash used in financing activities | (216) | (331) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (17) | (6) |
Net decrease in cash, cash equivalents and restricted cash | (44) | (64) |
Cash, cash equivalents and restricted cash, beginning of period | 690 | 569 |
Cash, cash equivalents and restricted cash, end of period | 646 | 505 |
Qurate | ||
Financing activities: | ||
Dividends paid to Qurate Retail, Inc. | $ (177) | $ (122) |
Consolidated Statement of Equit
Consolidated Statement of Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interest |
Balance at Dec. 31, 2019 | $ 6,804 | $ 0 | $ 9,208 | $ (2,390) | $ (144) | $ 130 |
Balance beginning (in shares) at Dec. 31, 2019 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 141 | 0 | 129 | 0 | 12 | |
Foreign currency translation adjustments, net of tax | (22) | 0 | 0 | (23) | 1 | |
(Dividends Paid To) Contributions Received From Wholly Owned Parent and Other | (137) | 0 | (122) | 0 | (15) | |
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc. | 2 | 0 | 2 | 0 | 0 | |
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (1) | (1) | 0 | 0 | 0 | |
Stock-based compensation | 6 | 6 | 0 | 0 | 0 | |
Balance at Mar. 31, 2020 | 6,793 | $ 0 | 9,213 | (2,381) | (167) | 128 |
Balance ending (in shares) at Mar. 31, 2020 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Withholding taxes on net share settlements of stock-based compensation | (1) | |||||
Other Comprehensive Income Loss Credit Risk On Fair Value Debt Instruments Gain (Loss) Net Of Tax | 0 | |||||
Balance at Dec. 31, 2020 | 8,135 | $ 0 | 10,741 | (2,722) | (17) | 133 |
Balance beginning (in shares) at Dec. 31, 2020 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 238 | 0 | 222 | 0 | 16 | |
Foreign currency translation adjustments, net of tax | (73) | 0 | 0 | (65) | (8) | |
(Dividends Paid To) Contributions Received From Wholly Owned Parent and Other | (193) | 0 | (177) | 0 | (16) | |
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc. | 5 | 5 | 0 | 0 | 0 | |
Stock-based compensation | 9 | 9 | 0 | 0 | 0 | |
Balance at Mar. 31, 2021 | 8,093 | $ 0 | 10,740 | (2,677) | (95) | 125 |
Balance ending (in shares) at Mar. 31, 2021 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Withholding taxes on net share settlements of stock-based compensation | (15) | (15) | 0 | 0 | 0 | |
Other Comprehensive Income Loss Credit Risk On Fair Value Debt Instruments Gain (Loss) Net Of Tax | $ (13) | $ 0 | $ 0 | $ (13) | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Basis of Presentation [Abstract] | |
Basis of Accounting | 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 United States ("U.S."), QVC's televised shopping programs, including live and recorded content, are distributed across multiple channels nationally on a full-time basis, including QVC, QVC2, QVC3, HSN and HSN2. The Company's U.S. programming is also available on QVC.com and HSN.com, QVC's "U.S. websites"; virtual multichannel video programming distributors (including Hulu + Live TV, AT&T TV, and YouTube TV); 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 televised programming, along with a wide assortment of products that are available only on our U.S. websites. QVC.com, HSN.com and our other digital platforms (including our mobile applications, social pages and others) are natural extensions of our business model, allowing customers to engage in our shopping experience wherever they are, with live or on-demand content customized to the device they are using. In addition to offering video content, 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 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 distributed across multiple QVC channels: QVC Style and QVC2 in Germany and QVC Beauty, QVC Extra and QVC Style in the U.K. Similar to the U.S., our international businesses also engage customers via websites, mobile applications, and social pages. QVC's international business employs product sourcing teams who select products tailored to the interests of each local market. The Company's Japanese operations ("QVC-Japan") are conducted through a joint venture with Mitsui & Co., LTD ("Mitsui"). QVC-Japan is owned 60% by the Company and 40% by Mitsui. The Company and Mitsui share in all profits and losses based on their respective ownership interests. During the three months ended March 31, 2021 and 2020, QVC-Japan paid dividends to Mitsui of $16 million and $15 million, respectively. The Company also has a joint venture with CNR Media Group, formerly known as China Broadcasting Corporation, a limited liability company owned by China National Radio (''CNR''). The Company owns a 49% interest in a CNR subsidiary, CNR Home Shopping Co., Ltd. (''CNRS''). CNRS operates a retail business in China through a shopping television channel with an associated website. This joint venture is accounted for as an equity method investment recorded as equity in income (losses) of investee in the condensed consolidated statements of operations. The Company is an indirect wholly-owned subsidiary of Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB and QRTEP), 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, formerly QVC Group, a portfolio of brands including QVC, Zulily and Cornerstone Brands, Inc. ("CBI"). On December 31, 2018, QVC entered into the Fourth Amended and Restated Credit Agreement that provides for a $2.95 billion revolving credit facility as explained further in note 5. The Fourth Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by QVC or Zulily. Under the terms of the Fourth Amended and Restated Credit Agreement, QVC and Zulily are jointly and severally liable for all amounts borrowed on the $400 million tranche. In accordance with the accounting guidance for obligations resulting from joint and several liability arrangements, QVC will record a liability for amounts it has borrowed under the credit facility plus any additional amount it expects to repay on behalf of Zulily. As of March 31, 2021, there was $75 million borrowed by Zulily on the $400 million tranche of the Fourth Amended and Restated Credit Agreement, none of which the Company expects to repay on behalf of Zulily. During each of the three months ended March 31, 2021 and 2020, QVC and Zulily engaged in multiple transactions relating to sales, sourcing of merchandise, marketing initiatives and business advisory services. QVC allocated expenses of $2 million to Zulily for each of the three months ended March 31, 2021 and 2020. Zulily allocated expenses of $2 million and $3 million to QVC for the three months ended March 31, 2021 and 2020, respectively. In September 2020, QVC and Zulily executed a Master Promissory Note ("Promissory Note") whereby Zulily may borrow up to $100 million at a variable interest rate equal to the LIBOR rate plus an applicable margin rate. The Promissory Note matures in September 2030. There were no borrowings on the Promissory Note as of March 31, 2021 and December 31, 2020. During each of the three months ended March 31, 2021 and 2020, QVC and CBI engaged in multiple transactions relating to personnel and business advisory services. QVC allocated expenses of $5 million and $6 million to CBI for the three months ended March 31, 2021 and 2020, respectively. CBI allocated expenses of $1 million to QVC for each of the three months ended March 31, 2021 and 2020. In December 2019, a new coronavirus disease ("COVID-19'") pandemic was reported to have surfaced in Wuhan, China and has subsequently spread across the globe, including all of the countries in which QVC operates. As a result of the spread of COVID-19, certain local governmental agencies have imposed travel restrictions, local quarantines or stay at home restrictions to contain the spread, which has caused a significant disruption to most sectors of the economy. Management is not presently aware of any events or circumstances arising from the COVID-19 pandemic that would require the Company to update the estimates, judgments or revise the carrying value of our assets or liabilities. Management's estimates may change, however, as new events occur and additional information is obtained, and any such changes will be recognized in the consolidated financial statements. Actual results could differ from estimates, and any such differences may be material to our financial statements. On December 30, 2020, the Company and Liberty Interactive LLC ("LIC") completed an internal realignment of the Company's global finance structure that resulted in a common control transaction with Qurate Retail. As part of the common control transaction, LIC issued a promissory note (“LIC Note”) to the Company with an initial face amount of $1.8 billion, a stated interest rate of 0.48% and a maturity of December 29, 2029. Interest on the LIC Note is to be paid annually beginning on December 29, 2021. QVC recorded $2 million of related party interest income for the three months ended March 31, 2021 included in interest expense, net in the consolidated statement of operations. The condensed consolidated financial statements include the accounts of QVC, Inc. and its majority-owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation. The accompanying (a) condensed consolidated balance sheet as of December 31, 2020, which has been derived from audited financial statements, and (b) the interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in QVC's Annual Report on Form 10-K for the year ended December 31, 2020. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, internally-developed software, valuation of acquired intangible assets and goodwill and income taxes. |
Television Distribution Rights,
Television Distribution Rights, Net | 3 Months Ended |
Mar. 31, 2021 | |
Television Distribution Rights [Abstract] | |
Television Distribution Rights, Net | Television Distribution Rights, Net Television distribution rights consisted of the following: (in millions) March 31, 2021 December 31, 2020 Television distribution rights $ 821 814 Less accumulated amortization (679) (751) Television distribution rights, net $ 142 63 The Company recorded amortization expense of $25 million and $34 million for the three months ended March 31, 2021 and 2020, respectively, related to television distribution rights. As of March 31, 2021, related amortization expense for each of the next five years ended December 31 was as follows (in millions): Remainder of 2021 $ 67 2022 72 2023 3 2024 — 2025 — |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | Goodwill and Other Intangible Assets, Net The changes in the carrying amount of goodwill by operating segment for the three months ended March 31, 2021 were as follows: (in millions) QxH QVC-International Total Balance as of December 31, 2020 $ 5,112 922 6,034 Exchange rate fluctuations — (37) (37) Balance as of March 31, 2021 $ 5,112 885 5,997 Other intangible assets consisted of the following: March 31, 2021 December 31, 2020 (in millions) Gross Accumulated Other intangible assets, net Gross Accumulated Other intangible assets, net Purchased and internally developed software $ 953 (664) 289 952 (663) 289 Affiliate and customer relationships 2,837 (2,568) 269 2,845 (2,564) 281 Debt origination fees 10 (5) 5 10 (4) 6 Trademarks (indefinite life) 2,878 — 2,878 2,878 — 2,878 $ 6,678 (3,237) 3,441 6,685 (3,231) 3,454 The Company recorded amortization expense of $37 million for each of the three months ended March 31, 2021 and 2020 related to other intangible assets. As of March 31, 2021, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions): Remainder of 2021 $ 133 2022 151 2023 115 2024 70 2025 47 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities [Abstract] | |
Accrued liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (in millions) March 31, 2021 December 31, 2020 Accounts payable non-trade $ 288 408 Allowance for sales returns 191 267 Accrued compensation and benefits 146 214 Other 418 413 $ 1,043 1,302 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt disclosure | Long-Term Debt and Finance Lease Obligations Long-term debt and finance lease obligations consisted of the following: (in millions) March 31, 2021 December 31, 2020 3.5% Exchangeable Senior Debentures due 2031 $ 441 393 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 4.75% Senior Secured Notes due 2027 575 575 4.375% Senior Secured Notes due 2028 500 500 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 500 500 Finance lease obligations (note 6) 161 168 Less debt issuance costs, net (47) (50) Total debt and finance lease obligations 5,003 4,959 Less current portion (458) (410) Long-term portion of debt and finance lease obligations $ 4,545 4,549 Exchangeable Senior Debentures The Company has elected to account for its Motorola Solutions, Inc. 3.5% Senior Exchangeable Debentures Due 2031 (the “MSI Exchangeables”) using the fair value option. Accordingly, changes in the fair value of these instruments are recognized as gains (losses) on financial instruments in the statements of operations and in other comprehensive income as it relates to instrument specific credit risk on the consolidated statements of comprehensive income. The Company has classified for financial reporting purposes the MSI Exchangeables as a current liability as the MSI Exchangeables are exchangeable at the option of the holder at any time. 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. 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 $2.95 billion revolving credit facility with a $450 million sub-limit for standby letters of credit and $1.5 billion of uncommitted incremental revolving loan commitments or incremental term loans. The Fourth Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by the Company or Zulily with a $50 million sub-limit for standby letters of credit. The remaining $2.55 billion and any incremental loans may be borrowed only by the Company. Borrowings that are alternate base rate loans will bear interest at a per annum rate equal to the base rate plus a margin that varies between 0.25% and 0.75% depending on the Borrowers’ combined ratio of Consolidated Total Debt to Consolidated EBITDA (the “Combined Consolidated Leverage Ratio”). Borrowings that are London Interbank Offered Rate ("LIBOR") loans will bear interest at a per annum rate equal to the applicable LIBOR rate plus a margin that varies between 1.25% and 1.75% depending on the Borrowers’ Combined Consolidated Leverage Ratio. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. No mandatory prepayments will be required other than when borrowings and letter of credit usage exceed availability; provided that, if Zulily ceases to be controlled by Qurate Retail, all of its loans must be repaid and its letters of credit cash collateralized. The facility matures on December 31, 2023. Payment of loans may be accelerated following certain customary events of default. QVC had $2.85 billion available under the terms of the Fourth Amended and Restated Credit Agreement as of March 31, 2021, including the portion available under the $400 million tranche that Zulily may also borrow on. 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 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 $2 million and $3 million as of March 31, 2021 and December 31, 2020, respectively, which was included in other long-term liabilities. Changes in the fair value of the swaps are reflected in gains (losses) on financial instruments in the condensed consolidated statements of operations. Other Debt Related Information QVC was in compliance with all of its debt covenants as of March 31, 2021. 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 4.9% as of March 31, 2021. |
Lease and Transponder Service A
Lease and Transponder Service Agreements | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases of lessee disclosure | Leases The Company has finance lease agreements with transponder and transmitter network suppliers for the right to transmit its signals in the U.S. 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. 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 three months ended March 31, 2021 and 2020, were as follows: Three months ended March 31, (in millions) 2021 2020 Finance lease cost Depreciation of leased assets $ 5 5 Interest on lease liabilities 2 2 Total finance lease cost 7 7 Operating lease cost 10 10 Total lease cost $ 17 17 The remaining weighted-average lease term and the weighted-average discount rate were as follows: March 31, 2021 Weighted-average remaining lease term (years): Finance leases 8.4 Operating leases 10.9 Weighted-average discount rate: Finance leases 5.2 % Operating leases 6.0 % Supplemental balance sheet information related to leases was as follows: (in millions) March 31, 2021 December 31, 2020 Operating Leases: Operating lease right-of-use assets $ 215 221 Accrued liabilities $ 24 25 Other long-term liabilities 190 195 Total operating lease liabilities $ 214 220 Finance Leases: Property and equipment $ 272 278 Accumulated depreciation (141) (141) Property and equipment, net $ 131 137 Current portion of debt and finance lease obligations $ 17 18 Long-term portion of debt and finance lease obligations 144 150 Total finance lease liabilities $ 161 168 Supplemental cash flow information related to leases was as follows: Three months ended March 31, (in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10 14 Operating cash flows from finance leases 2 2 Financing cash flows from finance leases 4 5 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1 3 Future payments under noncancelable operating leases and finance leases with initial terms of one year or more as of March 31, 2021 consisted of the following: (in millions) Finance leases Operating leases Total leases Remainder of 2021 $ 18 27 45 2022 26 33 59 2023 25 27 52 2024 23 24 47 2025 21 21 42 Thereafter 89 168 257 Total lease payments 202 300 502 Less: imputed interest (41) (86) (127) Total lease liabilities $ 161 214 375 |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Disaggregated revenue by segment and product category consisted of the following: Three months ended March 31, 2021 Three months ended March 31, 2020 (in millions) QxH QVC-International Total QxH QVC-International Total Home $ 775 324 1,099 681 257 938 Beauty 286 164 450 288 145 433 Apparel 290 126 416 299 101 400 Accessories 238 66 304 212 58 270 Electronics 201 33 234 174 22 196 Jewelry 98 60 158 98 49 147 Other revenue 48 1 49 40 3 43 Total net revenue $ 1,936 774 2,710 1,792 635 2,427 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. Private Label Credit Card ("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 Revenue is recognized when obligations with our customers are satisfied; generally this occurs at the time of shipment to our customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration we expect to receive in exchange for transferring goods, net of allowances for returns. The Company generally recognizes revenue related to the PLCC program over time as the PLCC is used by QVC's customers. Sales, value add, use and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company elected to treat shipping and handling activities that occur after the customer obtains control of the goods as a fulfillment cost and not as a promised good or service. Accordingly, the Company accrues the related shipping costs and recognizes revenue upon delivery of the goods to the shipping carrier. In electing this accounting policy, all shipping and handling activities will be treated as fulfillment costs. The Company generally extends payment terms with its customers of one year or less and does not consider the time value of money when recognizing revenue. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes The Company calculates its interim income tax provision by applying its best estimate of the annual expected effective tax rate to its ordinary year-to-date income or loss. The tax or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent and temporary differences as a result of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the tax environment changes. To the extent that the estimated annual effective tax rate changes during a quarter, the effect of the change on the prior quarters is included in the tax expense for the current quarter. For the three months ended March 31, 2021 and 2020, the Company recorded a tax provision of $85 million and $60 million, respectively, which represented an effective tax rate of 26.3% and 29.9%, respectively. The 2021 rate differs from the U.S. federal income tax rate of 21% due primarily to state and foreign tax expenses. The 2021 effective tax rate has decreased from the prior year for the three months ended March 31, 2021 primarily due to a valuation allowance established in the prior year for excess U.S. foreign tax credits, and reductions in other permanent items. The Company participates in a consolidated federal return filing with Qurate Retail. As of March 31, 2021, the Company's tax years through 2016 are closed for federal income tax purposes, and the Internal Revenue Service ("IRS") has completed its examination of the Company's 2017 and 2018 tax years. The Company's 2019, 2020 and 2021 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 March 31, 2021, the Company was under examination in the state of Pennsylvania, New York City, and in the U.K. The Company is a party to a Tax Liability Allocation and Indemnification Agreement (the “Tax Agreement”) with Qurate Retail. The Tax Agreement establishes the methodology for the calculation and payment of income taxes in connection with the consolidation of the Company with Qurate Retail for income tax purposes. Generally, the Tax Agreement provides that the Company will pay Qurate Retail an amount equal to the tax liability, if any, that it would have if it were to file as a consolidated group separate and apart from Qurate Retail, with exceptions for the treatment and timing of certain items, including but not limited to deferred intercompany transactions, credits, and net operating and capital losses. To the extent that the separate company tax expense is different from the payment terms of the Tax Agreement, the difference is recorded as either a dividend or capital contribution. The amounts of the tax-related payable due to Qurate Retail as of March 31, 2021 and December 31, 2020 were $87 million and $47 million, respectively, and were included in accrued liabilities in the accompanying condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that the amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements.Network and information systems, including the Internet and telecommunication systems, third party delivery services and other technologies are critical to QVC's business activities. Substantially all of QVC's customer orders, fulfillment and delivery services are dependent upon the use of network and information systems, including the use of third party telecommunication and delivery service providers. If information systems including the Internet or telecommunication services are disrupted, or if the third party delivery services experience a disruption in their transportation delivery services, the Company could face a significant disruption in fulfilling QVC's customer orders and shipment of QVC's products. The Company has active disaster recovery programs in place to help mitigate risks associated with these critical business activities. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 217 217 — — Current liabilities: Debt (note 5) 441 — 441 — Long-term liabilities: Debt (note 5) 4,610 730 3,880 — Interest rate swap arrangements (note 5) 2 — 2 — Fair value measurements at December 31, 2020 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 240 240 — — Current liabilities: Debt (note 5) 393 — 393 — Long-term liabilities: Debt (note 5) 4,705 743 3,962 — Interest rate swap arrangements (note 5) 3 — 3 — 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 | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment reporting disclosure | Information about QVC's Operating Segments The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA (defined below), gross margin, average sales price per unit, number of units shipped and revenue. 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 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 impairment loss (if any) that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP. QVC's chief operating decision maker ("CODM") is QVC's Chief Executive Officer. QVC's CODM has ultimate responsibility for enterprise decisions. QVC's CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise. The segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. QVC's CODM relies on internal management reporting that analyzes enterprise results and segment results to the Adjusted OIBDA level. For the three months ended March 31, 2021 and 2020, QVC identified QxH and QVC-International as its two reportable segments. Both operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the Internet and mobile applications in certain markets. Performance measures Three months ended March 31, 2021 2020 (in millions) Net Adjusted Net Adjusted QxH $ 1,936 349 1,792 293 QVC-International 774 143 635 97 Consolidated QVC $ 2,710 492 2,427 390 Other information Three months ended March 31, 2021 2020 (in millions) Depreciation Amortization Depreciation Amortization QxH $ 26 59 29 68 QVC-International 14 3 14 3 Consolidated QVC $ 40 62 43 71 March 31, 2021 (in millions) Total Capital Property and equipment, net QxH $ 13,891 36 728 QVC-International 2,240 5 378 Consolidated QVC $ 16,131 41 1,106 The following table provides a reconciliation of Adjusted OIBDA to operating income and income before income taxes: Three months ended March 31, (in millions) 2021 2020 Adjusted OIBDA $ 492 390 Stock-based compensation (9) (6) Depreciation and amortization (102) (114) Operating income 381 270 Equity in losses of investee — (1) Gains (losses) on financial instruments 1 (4) Interest expense, net (63) (65) Foreign currency (loss) gain (2) 1 Other income 6 — Income before income taxes $ 323 201 |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | Other Comprehensive Income The change in the component of accumulated other comprehensive loss, net of taxes ("AOCL"), is summarized as follows: (in millions) Comprehensive earnings attributable to debt credit risk adjustments Foreign currency translation adjustments AOCL Balance at January 1, 2021 $ 16 (33) (17) Other comprehensive income attributable to QVC, Inc. stockholder (13) (65) (78) Balance at March 31, 2021 3 (98) (95) Balance at January 1, 2020 $ — (144) (144) Other comprehensive loss attributable to QVC, Inc. stockholder — (23) (23) Balance at March 31, 2020 — (167) (167) The component of other comprehensive income is reflected in QVC's condensed consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive loss: (in millions) Before-tax amount Tax benefit (expense) Net-of-tax amount Three months ended March 31, 2021 Foreign currency translation adjustments $ (72) (1) (73) Debt credit risk adjustment (13) — (13) Other comprehensive income (85) (1) (86) Three months ended March 31, 2020 Foreign currency translation adjustments $ (23) 1 (22) Other comprehensive loss (23) 1 (22) |
Revenue Revenue (Policies)
Revenue Revenue (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue [Policy Text Block] | Revenue Recognition Revenue is recognized when obligations with our customers are satisfied; generally this occurs at the time of shipment to our customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration we expect to receive in exchange for transferring goods, net of allowances for returns. The Company generally recognizes revenue related to the PLCC program over time as the PLCC is used by QVC's customers. Sales, value add, use and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company elected to treat shipping and handling activities that occur after the customer obtains control of the goods as a fulfillment cost and not as a promised good or service. Accordingly, the Company accrues the related shipping costs and recognizes revenue upon delivery of the goods to the shipping carrier. In electing this accounting policy, all shipping and handling activities will be treated as fulfillment costs. The Company generally extends payment terms with its customers of one year or less and does not consider the time value of money when recognizing revenue. |
Television Distribution Right_2
Television Distribution Rights, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Television Distribution Rights [Abstract] | |
Schedule of television distribution rights | Television distribution rights consisted of the following: (in millions) March 31, 2021 December 31, 2020 Television distribution rights $ 821 814 Less accumulated amortization (679) (751) Television distribution rights, net $ 142 63 |
Schedule of future amortization expense | As of March 31, 2021, related amortization expense for each of the next five years ended December 31 was as follows (in millions): Remainder of 2021 $ 67 2022 72 2023 3 2024 — 2025 — |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill by operating segment for the three months ended March 31, 2021 were as follows: (in millions) QxH QVC-International Total Balance as of December 31, 2020 $ 5,112 922 6,034 Exchange rate fluctuations — (37) (37) Balance as of March 31, 2021 $ 5,112 885 5,997 |
Schedule of acquired intangible assets by class | Other intangible assets consisted of the following: March 31, 2021 December 31, 2020 (in millions) Gross Accumulated Other intangible assets, net Gross Accumulated Other intangible assets, net Purchased and internally developed software $ 953 (664) 289 952 (663) 289 Affiliate and customer relationships 2,837 (2,568) 269 2,845 (2,564) 281 Debt origination fees 10 (5) 5 10 (4) 6 Trademarks (indefinite life) 2,878 — 2,878 2,878 — 2,878 $ 6,678 (3,237) 3,441 6,685 (3,231) 3,454 |
Schedule of finite-lived intangible assets future amortization expense | As of March 31, 2021, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions): Remainder of 2021 $ 133 2022 151 2023 115 2024 70 2025 47 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following: (in millions) March 31, 2021 December 31, 2020 Accounts payable non-trade $ 288 408 Allowance for sales returns 191 267 Accrued compensation and benefits 146 214 Other 418 413 $ 1,043 1,302 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Long-term debt and finance lease obligations consisted of the following: (in millions) March 31, 2021 December 31, 2020 3.5% Exchangeable Senior Debentures due 2031 $ 441 393 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 4.75% Senior Secured Notes due 2027 575 575 4.375% Senior Secured Notes due 2028 500 500 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 500 500 Finance lease obligations (note 6) 161 168 Less debt issuance costs, net (47) (50) Total debt and finance lease obligations 5,003 4,959 Less current portion (458) (410) Long-term portion of debt and finance lease obligations $ 4,545 4,549 |
Lease and Transponder Service_2
Lease and Transponder Service Agreements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease cost for the three months ended March 31, 2021 and 2020, were as follows: Three months ended March 31, (in millions) 2021 2020 Finance lease cost Depreciation of leased assets $ 5 5 Interest on lease liabilities 2 2 Total finance lease cost 7 7 Operating lease cost 10 10 Total lease cost $ 17 17 |
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: March 31, 2021 Weighted-average remaining lease term (years): Finance leases 8.4 Operating leases 10.9 Weighted-average discount rate: Finance leases 5.2 % Operating leases 6.0 % |
Leases, Supplemental Balance Sheet Information [Table Text Block] | Supplemental balance sheet information related to leases was as follows: (in millions) March 31, 2021 December 31, 2020 Operating Leases: Operating lease right-of-use assets $ 215 221 Accrued liabilities $ 24 25 Other long-term liabilities 190 195 Total operating lease liabilities $ 214 220 Finance Leases: Property and equipment $ 272 278 Accumulated depreciation (141) (141) Property and equipment, net $ 131 137 Current portion of debt and finance lease obligations $ 17 18 Long-term portion of debt and finance lease obligations 144 150 Total finance lease liabilities $ 161 168 |
Leases, Supplemental Cash Flow Information [Table Text Block] | Supplemental cash flow information related to leases was as follows: Three months ended March 31, (in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10 14 Operating cash flows from finance leases 2 2 Financing cash flows from finance leases 4 5 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1 3 |
Future minimum lease payments [Table Text Block] | Future payments under noncancelable operating leases and finance leases with initial terms of one year or more as of March 31, 2021 consisted of the following: (in millions) Finance leases Operating leases Total leases Remainder of 2021 $ 18 27 45 2022 26 33 59 2023 25 27 52 2024 23 24 47 2025 21 21 42 Thereafter 89 168 257 Total lease payments 202 300 502 Less: imputed interest (41) (86) (127) Total lease liabilities $ 161 214 375 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregated revenue by segment and product category consisted of the following: Three months ended March 31, 2021 Three months ended March 31, 2020 (in millions) QxH QVC-International Total QxH QVC-International Total Home $ 775 324 1,099 681 257 938 Beauty 286 164 450 288 145 433 Apparel 290 126 416 299 101 400 Accessories 238 66 304 212 58 270 Electronics 201 33 234 174 22 196 Jewelry 98 60 158 98 49 147 Other revenue 48 1 49 40 3 43 Total net revenue $ 1,936 774 2,710 1,792 635 2,427 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | The Company's assets and liabilities measured or disclosed at fair value were as follows: Fair value measurements at March 31, 2021 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 217 217 — — Current liabilities: Debt (note 5) 441 — 441 — Long-term liabilities: Debt (note 5) 4,610 730 3,880 — Interest rate swap arrangements (note 5) 2 — 2 — Fair value measurements at December 31, 2020 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 240 240 — — Current liabilities: Debt (note 5) 393 — 393 — Long-term liabilities: Debt (note 5) 4,705 743 3,962 — Interest rate swap arrangements (note 5) 3 — 3 — |
Information about QVC's Opera_2
Information about QVC's Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Adjusted OIBDA by Segment | Three months ended March 31, 2021 2020 (in millions) Net Adjusted Net Adjusted QxH $ 1,936 349 1,792 293 QVC-International 774 143 635 97 Consolidated QVC $ 2,710 492 2,427 390 |
Schedule of Depreciation and Amortization by Segment | Three months ended March 31, 2021 2020 (in millions) Depreciation Amortization Depreciation Amortization QxH $ 26 59 29 68 QVC-International 14 3 14 3 Consolidated QVC $ 40 62 43 71 |
Schedule of Capital Expenditures and Total Assets by Segment | March 31, 2021 (in millions) Total Capital Property and equipment, net QxH $ 13,891 36 728 QVC-International 2,240 5 378 Consolidated QVC $ 16,131 41 1,106 |
Reconciliation of Adjusted OIBDA to Income before Income Taxes | The following table provides a reconciliation of Adjusted OIBDA to operating income and income before income taxes: Three months ended March 31, (in millions) 2021 2020 Adjusted OIBDA $ 492 390 Stock-based compensation (9) (6) Depreciation and amortization (102) (114) Operating income 381 270 Equity in losses of investee — (1) Gains (losses) on financial instruments 1 (4) Interest expense, net (63) (65) Foreign currency (loss) gain (2) 1 Other income 6 — Income before income taxes $ 323 201 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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) Comprehensive earnings attributable to debt credit risk adjustments Foreign currency translation adjustments AOCL Balance at January 1, 2021 $ 16 (33) (17) Other comprehensive income attributable to QVC, Inc. stockholder (13) (65) (78) Balance at March 31, 2021 3 (98) (95) Balance at January 1, 2020 $ — (144) (144) Other comprehensive loss attributable to QVC, Inc. stockholder — (23) (23) Balance at March 31, 2020 — (167) (167) |
Schedule of Component of Comprehensive Income (Loss) | The component of other comprehensive income is reflected in QVC's condensed consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive loss: (in millions) Before-tax amount Tax benefit (expense) Net-of-tax amount Three months ended March 31, 2021 Foreign currency translation adjustments $ (72) (1) (73) Debt credit risk adjustment (13) — (13) Other comprehensive income (85) (1) (86) Three months ended March 31, 2020 Foreign currency translation adjustments $ (23) 1 (22) Other comprehensive loss (23) 1 (22) |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 30, 2020 | Dec. 31, 2019 | |
General business information | |||||
Dividends paid to noncontrolling interest | $ 16 | $ 15 | |||
Note receivable - related party (note 1) | $ 1,825 | $ 1,825 | $ 1,800 | ||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 0.48% | ||||
Interest Income, Related Party | $ 2 | ||||
QVC to CBI Allocated Expenses [Member] | Cornerstone Brands Inc [Member] | |||||
General business information | |||||
Related Party Transaction, Expenses from Transactions with Related Party | 5 | 6 | |||
CBI to QVC allocated expenses [Member] | Cornerstone Brands Inc [Member] | |||||
General business information | |||||
Related Party Transaction, Expenses from Transactions with Related Party | 1 | 1 | |||
Revolving Credit Facility [Member] | |||||
General business information | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,950 | ||||
Revolving Credit Facility [Member] | Tranche One, Shared with Related Party | |||||
General business information | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400 | $ 400 | |||
QVC-Japan | |||||
General business information | |||||
Investment Owned, Percent of Net Assets | 60.00% | ||||
QVC-Japan | Mitsui [Domain] | |||||
General business information | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 40.00% | ||||
CNR Home Shopping Co., Ltd. | |||||
General business information | |||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||
zulily, llc [Member] | |||||
General business information | |||||
Long-term Line of Credit | $ 75 | ||||
zulily, llc [Member] | QVC to Zulily allocated expenses [Member] | |||||
General business information | |||||
Related Party Transaction, Amounts of Transaction | 2 | 2 | |||
zulily, llc [Member] | Zulily to QVC allocated expenses [Member] | |||||
General business information | |||||
Related Party Transaction, Amounts of Transaction | 2 | $ 3 | |||
zulily, llc [Member] | QVC to Zulily loan [Member] | |||||
General business information | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | ||||
Line of Credit Facility, Interest Rate Description | variable interest rate equal to the LIBOR rate plus an applicable margin rate |
Television Distribution Right_3
Television Distribution Rights, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Television distribution rights, net | $ 142 | $ 63 | |
Television distribution rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Television distribution rights | 821 | 814 | |
Less accumulated amortization | (679) | (751) | |
Television distribution rights, net | 142 | $ 63 | |
Amortization | $ 25 | $ 34 |
Television Distribution Right_4
Television Distribution Rights, Net (Future Amortization Expense) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 133 |
2022 | 151 |
2023 | 115 |
2024 | 70 |
2025 | 47 |
Television distribution rights | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | 67 |
2022 | 72 |
2023 | 3 |
2024 | 0 |
2025 | $ 0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Goodwill [Line Items] | |||
Balance as of December 31, 2020 | $ 6,034 | ||
Exchange rate fluctuations | (37) | ||
Balance as of March 31, 2021 | $ 5,997 | ||
Document Period End Date | Mar. 31, 2021 | ||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Trademarks (indefinite life) | $ 2,878 | $ 2,878 | |
Other intangible assets (excluding goodwill), gross | 6,678 | 6,685 | |
Other intangible assets (excluding goodwill), accumulated amortization | (3,237) | (3,231) | |
Other intangible assets (excluding goodwill), net | 3,441 | 3,454 | |
Amortization of other intangible assets | 37 | $ 37 | |
Finite-Lived Intangible Assets [Line Items] | |||
Remainder of 2021 | 133 | ||
2022 | 151 | ||
2023 | 115 | ||
2024 | 70 | ||
2025 | 47 | ||
QxH [Member] | |||
Goodwill [Line Items] | |||
Balance as of December 31, 2020 | 5,112 | ||
Exchange rate fluctuations | 0 | ||
Balance as of March 31, 2021 | 5,112 | ||
QVC-International | |||
Goodwill [Line Items] | |||
Balance as of December 31, 2020 | 922 | ||
Exchange rate fluctuations | (37) | ||
Balance as of March 31, 2021 | 885 | ||
Software and Software Development Costs | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchased and internally developed software | 953 | 952 | |
Purchased and internally developed software | (664) | (663) | |
Purchased and internally developed software | 289 | 289 | |
Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Affiliate and customer relationships | 2,837 | 2,845 | |
Affiliate and customer relationships | (2,568) | (2,564) | |
Affiliate and customer relationships | 269 | 281 | |
Debt | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Debt origination fees | 10 | 10 | |
Debt origination fees | (5) | (4) | |
Debt origination fees | $ 5 | $ 6 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities [Abstract] | ||
Accounts payable non-trade | $ 288 | $ 408 |
Allowance for sales returns | 191 | 267 |
Employee-related Liabilities | 146 | 214 |
Other | 418 | 413 |
Accrued liabilities | $ 1,043 | $ 1,302 |
Long-Term Debt (Debt) (Details)
Long-Term Debt (Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Jul. 01, 2019 |
Debt Instrument [Line Items] | |||
Derivative, Notional Amount | $ 125 | ||
Debt and Lease Obligation | $ 161 | $ 168 | |
Debt Issuance Costs | (47) | (50) | |
Total debt and finance lease obligations | 5,003 | 4,959 | |
Less current portion | (458) | (410) | |
Long-term portion of debt and finance lease obligations | $ 4,545 | 4,549 | |
Exchangeable Senior Debentures Due 2031 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||
Debt Instrument Net of Unamortized Discounts Premium | $ 441 | 393 | |
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 Instrument Net of Unamortized Discounts Premium | $ 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 Instrument Net of Unamortized Discounts Premium | $ 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 Instrument Net of Unamortized Discounts Premium | $ 599 | 599 | |
4.75% Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||
Debt Instrument Net of Unamortized Discounts Premium | $ 575 | 575 | |
4.375% Senior Secured Notes due 2028 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.375% | ||
Debt Instrument Net of Unamortized Discounts Premium | $ 500 | 500 | |
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 Instrument Net of Unamortized Discounts Premium | $ 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 Instrument Net of Unamortized Discounts Premium | $ 300 | 300 | |
6.375% Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | ||
Debt Instrument Net of Unamortized Discounts Premium | $ 225 | 225 | |
6.25% Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | ||
Debt Instrument Net of Unamortized Discounts Premium | $ 500 | 500 | |
Finance lease obligations (note 6) | |||
Debt Instrument [Line Items] | |||
Debt and Lease Obligation | $ 161 | $ 168 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 01, 2019 |
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,850 | |||
Derivative, Notional Amount | $ 125 | |||
Derivative Asset, Current | $ 2 | $ 3 | ||
Debt Instrument, Lower Range of Basis Spread on Variable Rate | 0.25% | |||
Debt Instrument, Higher Range of Basis Spread on Variable Rate | 0.75% | |||
Debt, Weighted Average Interest Rate | 4.90% | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,950 | |||
Line of Credit Facility, Standby Letter of Credit | 450 | |||
Line of credit facility, uncommitted loan | 1,500 | |||
Tranche One, Shared with Related Party | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400 | 400 | ||
Tranche One, Shared with Related Party | Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Standby Letter of Credit | 50 | |||
QVC | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,550 | |||
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% | |||
6.375% Senior Secured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | |||
6.25% Senior Secured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% |
Lease and Transponder Service_3
Lease and Transponder Service Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Lessee Leasing Arrangement, Term of Contract | 12 months | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 1 | $ 3 | |
Operating Lease, Liability | 214 | $ 220 | |
Lease, Cost [Abstract] | |||
Finance Lease, Right-of-Use Asset, Amortization | 5 | 5 | |
Finance Lease, Interest Expense | 2 | 2 | |
Finance Lease, Total Cost | 7 | 7 | |
Operating leases expense net | 10 | 10 | |
Total Lease Cost | $ 17 | 17 | |
Weighted average lease term and discount rate [Abstract] | |||
Finance Lease, Weighted Average Remaining Lease Term | 8 years 4 months 24 days | ||
Operating Lease, Weighted Average Remaining Lease Term | 10 years 10 months 24 days | ||
Finance Lease, Weighted Average Discount Rate, Percent | 5.20% | ||
Operating Lease, Weighted Average Discount Rate, Percent | 6.00% | ||
Supplemental balance sheet information [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 215 | 221 | |
Operating Lease, Liability, Current | 24 | 25 | |
Operating Lease, Liability, Noncurrent | 190 | 195 | |
Finance Lease, Right of Use Asset, Gross | 272 | 278 | |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | (141) | (141) | |
Finance Lease, Right-of-Use Asset | 131 | 137 | |
Finance Lease, Liability, Current | 17 | 18 | |
Finance Lease, Liability, Noncurrent | 144 | 150 | |
Finance Lease, Liability | 161 | $ 168 | |
Supplemental Cash Flow Information [Abstract] | |||
Operating Lease, Payments | 10 | 14 | |
Finance Lease, Interest Payment on Liability | 2 | 2 | |
Finance Lease, Principal Payments | 4 | 5 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1 | $ 3 | |
Finance Lease, Liability, Payment, Due [Abstract] | |||
Remainder of 2021 | 18 | ||
2022 | 26 | ||
2023 | 25 | ||
2024 | 23 | ||
2025 | 21 | ||
Thereafter | 89 | ||
Imputed interest on finance lease | (41) | ||
Finance Lease, Liability, Payment, Due | 202 | ||
Operating leases | |||
Remainder of 2021 | 27 | ||
2022 | 33 | ||
2023 | 27 | ||
2024 | 24 | ||
2025 | 21 | ||
Thereafter | 168 | ||
Total | 300 | ||
Imputed interest of operating leases | (86) | ||
Total Future payments, Leases [Abstract] | |||
Remainder of 2021 | 45 | ||
2022 | 59 | ||
2023 | 52 | ||
2024 | 47 | ||
2025 | 42 | ||
Thereafter | 257 | ||
Imputed interest on lease liabilities | (127) | ||
Total Lease Payments Due | 502 | ||
Lease Liability, Total | $ 375 | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee Leasing Arrangement, Term of Contract | 1 year | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee Leasing Arrangement, Term of Contract | 14 years |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,710 | $ 2,427 |
Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,099 | 938 |
Apparel [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 416 | 400 |
Beauty [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 450 | 433 |
Accessories | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 304 | 270 |
Jewelry | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 158 | 147 |
Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 234 | 196 |
Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 49 | 43 |
QxH [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,936 | 1,792 |
QxH [Member] | Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 775 | 681 |
QxH [Member] | Apparel [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 290 | 299 |
QxH [Member] | Beauty [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 286 | 288 |
QxH [Member] | Accessories | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 238 | 212 |
QxH [Member] | Jewelry | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 98 | 98 |
QxH [Member] | Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 201 | 174 |
QxH [Member] | Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 48 | 40 |
QVC-International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 774 | 635 |
QVC-International | Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 324 | 257 |
QVC-International | Apparel [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 126 | 101 |
QVC-International | Beauty [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 164 | 145 |
QVC-International | Accessories | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 66 | 58 |
QVC-International | Jewelry | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 60 | 49 |
QVC-International | Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 33 | 22 |
QVC-International | Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1 | $ 3 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Income tax expense | $ (85) | $ (60) | |
Effective Income Tax Rate Reconciliation, Percent | 26.30% | 29.90% | |
UNITED STATES | |||
Income Tax Contingency [Line Items] | |||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | ||
Liberty | Tax Agreement | |||
Income Tax Contingency [Line Items] | |||
Current tax payments due to related parties | $ 87 | $ 47 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets, Fair Value Disclosure | ||
Cash equivalents | $ 217 | $ 240 |
Short-term Debt, Fair Value | 441 | 393 |
Long-term liabilities | ||
Long-term Debt, Fair Value | 4,610 | 4,705 |
Derivative Liability | 2 | 3 |
Level 1 | ||
Current Assets, Fair Value Disclosure | ||
Cash equivalents | 217 | 240 |
Long-term liabilities | ||
Long-term Debt, Fair Value | 730 | 743 |
Derivative Liability | 0 | |
Level 2 | ||
Current Assets, Fair Value Disclosure | ||
Short-term Debt, Fair Value | 441 | 393 |
Long-term liabilities | ||
Long-term Debt, Fair Value | 3,880 | 3,962 |
Derivative Liability | $ 2 | $ 3 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Adjusted OIBDA Excluding Transaction Related Costs | $ 492 | $ 390 |
Revenues | 2,710 | 2,427 |
QxH [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted OIBDA Excluding Transaction Related Costs | 349 | 293 |
Revenues | 1,936 | 1,792 |
QVC-International | ||
Segment Reporting Information [Line Items] | ||
Adjusted OIBDA Excluding Transaction Related Costs | 143 | 97 |
Revenues | $ 774 | $ 635 |
Information about QVC's Opera_4
Information about QVC's Operating Segments (Depreciation/Amortization by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Depreciation | $ 40 | $ 43 |
Amortization | 62 | 71 |
QxH [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 26 | 29 |
Amortization | 59 | 68 |
QVC-International | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 14 | 14 |
Amortization | $ 3 | $ 3 |
Information about QVC's Opera_5
Information about QVC's Operating Segments (Total Assets and Capital Expenditures by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total assets | $ 16,131 | $ 16,558 |
Capital expenditures | 41 | |
Property and equipment, net of accumulated depreciation of $1,392 at March 31, 2021 and $1,544 at December 31, 2020 | 1,106 | $ 1,178 |
QxH [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 13,891 | |
Capital expenditures | 36 | |
Property and equipment, net of accumulated depreciation of $1,392 at March 31, 2021 and $1,544 at December 31, 2020 | 728 | |
QVC-International | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,240 | |
Capital expenditures | 5 | |
Property and equipment, net of accumulated depreciation of $1,392 at March 31, 2021 and $1,544 at December 31, 2020 | $ 378 |
Information about QVC's Opera_6
Information about QVC's Operating Segments (Reconciliation of Adjusted OIBDA to Income before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting [Abstract] | ||
Adjusted OIBDA Excluding Transaction Related Costs | $ 492 | $ 390 |
Stock-based compensation | (9) | (6) |
Depreciation and amortization | (102) | (114) |
Operating Income (Loss) | 381 | 270 |
Equity in losses of investee | 0 | (1) |
Gain (Loss) on Derivative Instruments, Net, Pretax | 1 | (4) |
Interest expense, net | (63) | (65) |
Foreign currency (loss) gain | (2) | 1 |
Other Income | 6 | 0 |
Income before income taxes | $ 323 | $ 201 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCL | ||
Beginning balance | $ (17) | $ (144) |
Ending balance | (95) | (167) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (78) | |
Accumulated other comprehensive loss | (95) | (167) |
Accumulated Other Comprehensive Income Loss Attributable To Debt Credit Risk Adjustment Member | ||
AOCL | ||
Beginning balance | 16 | 0 |
Ending balance | 3 | 0 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (13) | 0 |
Accumulated other comprehensive loss | 3 | 0 |
Accumulated Foreign Currency Adjustment Attributable to Parent | ||
Foreign currency translation adjustments | ||
Beginning balance | (33) | (144) |
Other comprehensive loss attributable to QVC, Inc. stockholder | (65) | (23) |
Ending balance | (98) | (167) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (98) | (167) |
Other comprehensive loss attributable to QVC, Inc. stockholder | $ (65) | (23) |
QVC, Inc. stockholder [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (23) |
Other Comprehensive Income Comp
Other Comprehensive Income Components (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments before tax | $ (72) | $ (23) |
Tax expense from foreign currency translation gain (loss) | (1) | 1 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (73) | (22) |
Other Comprehensive Income Loss Credit Risk On Fair Value Debt Instruments Gain (Loss) Net Of Tax | (13) | 0 |
Comprehensive Earnings (Loss) Attributable to Debt Credit Risk Adjustments, Before Tax Amount | (13) | |
Other comprehensive loss attributable to QVC, Inc. stockholder | (86) | |
Other Comprehensive Income (Loss), Tax | 1 | (1) |
Other Comprehensive Income (Loss), before Tax | $ (85) | $ (23) |