Document and Entity Information
Document and Entity Information Document $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Document Information [Abstract] | |
Document Type | 10-K |
Document Period End Date | Dec. 31, 2021 |
Entity File Number | 001-38654 |
Entity Registrant Name | QVC, Inc. |
Entity Tax Identification Number | 23-2414041 |
Entity Central Index Key | 0001254699 |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | shares | 1 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Public Float | $ | $ 0 |
Document Transition Report | false |
Entity Incorporation, State or Country Code | DE |
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 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status submitted electronically | 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 |
Document Information [Line Items] | |
Document Transition Report | false |
Document Annual Report | true |
6.375% Senior Secured Notes [Member] | |
Document Information [Abstract] | |
Title of 12(b) Security | 6.375% Senior Secured Notes due 2067 |
Trading Symbol | QVCD |
Security Exchange Name | NYSE |
Document Information [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] [Member] | |
Document Information [Abstract] | |
Title of 12(b) Security | 6.250% Senior Secured Notes due 2068 |
Trading Symbol | QVCC |
Security Exchange Name | NYSE |
Document Information [Line Items] | |
Title of 12(b) Security | 6.250% Senior Secured Notes due 2068 |
Trading Symbol | QVCC |
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Firm ID | 185 |
Auditor Location | Philadelphia, PA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 510 | $ 682 |
Restricted cash | 9 | 8 |
Allowance for credit losses | 99 | 124 |
Accounts Receivable, after Allowance for Credit Loss, Current | 1,645 | 1,602 |
Inventories | 1,355 | 1,119 |
Prepaid expenses and other current assets | 180 | 293 |
Total current assets | 3,699 | 3,704 |
Noncurrent assets: | ||
Accumulated depreciation | 1,354 | 1,544 |
Property, Plant and Equipment, Net | 966 | 1,178 |
Operating Lease, Right-of-Use Asset | 201 | 221 |
Television Distribution Rights, Net | 145 | 63 |
Goodwill (note 6) | 5,968 | 6,034 |
Other intangible assets, net (note 6) | 3,407 | 3,454 |
Notes Receivable, Related Parties, Noncurrent | 1,740 | 1,825 |
Other noncurrent assets | 62 | 79 |
Total assets | 16,188 | 16,558 |
Current liabilities: | ||
Current portion of debt and finance lease obligations (note 8) | 20 | 410 |
Accounts payable-trade | 1,271 | 1,127 |
Accrued liabilities (note 7) | 1,179 | 1,302 |
Total current liabilities | 2,470 | 2,839 |
Noncurrent liabilities: | ||
Long-term Debt and Lease Obligation | 5,023 | 4,549 |
Deferred Income Tax Liabilities, Net | 636 | 711 |
Other long-term liabilities | 294 | 324 |
Total liabilities | $ 8,423 | 8,423 |
QVC, Inc. stockholder's equity: | ||
Common stock par value | $ 0.01 | |
Authorized shares | 1 | |
Common Stock, Value, Issued | $ 0 | 0 |
Additional paid-in capital | 10,687 | 10,741 |
Accumulated deficit | (2,898) | (2,722) |
Accumulated other comprehensive loss (note 17) | (146) | (17) |
Total QVC, Inc. stockholder's equity | 7,643 | 8,002 |
Noncontrolling interest | 122 | 133 |
Total equity | 7,765 | 8,135 |
Total liabilities and equity | $ 16,188 | $ 16,558 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accumulated depreciation | $ 1,354 | $ 1,544 |
Common stock par value | $ 0.01 | |
Authorized shares | 1 | |
Allowance for credit losses | $ 99 | $ 124 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 11,354 | $ 11,472 | $ 10,986 |
Cost of Goods and Services Sold | 7,368 | 7,418 | 7,148 |
Operating costs and expenses: | |||
Operating | 791 | 786 | 768 |
Selling, General and Administrative, Including Transaction Related Costs and Stock-Based Compensation | 1,238 | 1,248 | 1,128 |
Depreciation | 159 | 171 | 186 |
Amortization | 270 | 282 | 282 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | (147) |
Fire related costs, net | 21 | 0 | 0 |
Operating Expenses | 9,847 | 9,905 | 9,659 |
Operating income | 1,507 | 1,567 | 1,327 |
Other (expense) income: | |||
Equity in losses of investee | (2) | (30) | 0 |
Gains (losses) on financial instruments | 8 | 3 | (5) |
Interest expense, net | (249) | (257) | (240) |
Foreign currency (loss) gain | (9) | 6 | (3) |
Loss on extinguishment of debt | (7) | (42) | 0 |
Other Income | 11 | 0 | 0 |
Nonoperating expense | (248) | (320) | (248) |
Income before income taxes | 1,259 | 1,247 | 1,079 |
Income tax expense | (408) | (337) | (262) |
Net income | 851 | 910 | 817 |
Less net income attributable to the noncontrolling interest | (64) | (58) | (50) |
Net income attributable to QVC, Inc. stockholder | $ 787 | $ 852 | $ 767 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income | $ 851 | $ 910 | $ 817 |
Foreign currency translation adjustments, net of tax | (128) | 118 | 1 |
Recognition Of Previously Unrealized Gains Losses On Debt | 3 | 0 | 0 |
Comprehensive loss attributable to debt credit risk adjustments | (19) | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | (144) | 118 | 1 |
Total comprehensive income | 707 | 1,028 | 818 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (49) | (65) | (51) |
Comprehensive income attributable to QVC, Inc. stockholder | $ 658 | $ 963 | $ 767 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income | $ 851 | $ 910 | $ 817 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in losses of investee | 2 | 30 | 0 |
Increase (Decrease) in Other Deferred Liability | (82) | (10) | (8) |
Foreign currency loss (gain) | 9 | (6) | 3 |
Depreciation | 159 | 171 | 186 |
Amortization | 270 | 282 | 282 |
Amortization of Debt Issuance Costs and Discounts | 8 | (6) | (12) |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | 147 |
Loss on extinguishment of debt | 7 | 42 | 0 |
Stock-based compensation | 44 | 37 | 39 |
Change in other long-term liabilities | (8) | 5 | (42) |
Other Income | (11) | 0 | 0 |
Other non-cash charges, net | 42 | 39 | 32 |
Insurance proceeds received for inventory loss | 100 | 0 | 0 |
Increase (Decrease) in Accounts Receivable | (71) | (229) | 10 |
Increase (Decrease) in Inventories | 388 | (115) | (68) |
Increase (Decrease) in Prepaid Expense | (22) | 14 | 16 |
Increase (Decrease) in Accounts Payable, Trade | 156 | 184 | (74) |
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities | (67) | 214 | (114) |
Net Cash Provided by (Used in) Operating Activities | 1,169 | 2,234 | 1,322 |
Net Cash Provided by (Used in) Investing Activities | |||
Payments to Acquire Productive Assets | 210 | 218 | 291 |
Payments for Cable and Satellite Television Distribution Rights | 187 | 56 | 134 |
Repayment of Notes Receivable from Related Parties | 85 | 0 | 0 |
Proceeds from Sales of Assets, Investing Activities | 54 | 0 | 0 |
Other investing activities | 8 | 0 | 29 |
Increase (Decrease) in Other Noncurrent Assets | 5 | 5 | 11 |
Investing activities: | (255) | (279) | (407) |
Repayments of Debt and Lease Obligation | 402 | 1,236 | 2,599 |
Proceeds from Long-term Lines of Credit | 705 | 112 | 2,496 |
Repayments of Secured Debt | 0 | (500) | (400) |
Payment for Debt Extinguishment or Debt Prepayment Cost | 0 | (41) | 0 |
Proceeds from Issuance of Secured Debt | 0 | 1,075 | 500 |
Payments of Debt Issuance Costs | 6 | 15 | 18 |
Proceeds from Contributions from Parent | 0 | 0 | 50 |
Dividends paid to noncontrolling interest | 60 | 62 | 40 |
Payments for Derivative Instrument, Financing Activities | (625) | 0 | 0 |
Proceeds from Derivative Instrument, Financing Activities | 311 | 0 | 0 |
Proceeds from (Payments for) Other Financing Activities | (17) | (3) | (4) |
Net Cash Provided by (Used in) Financing Activities | (1,057) | (1,854) | (894) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (28) | 20 | (2) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (171) | 121 | 19 |
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | 690 | 569 | |
Cash, Cash Equivalents, and Restricted Cash, End of Period | 519 | 690 | 569 |
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for taxes-to Qurate Retail Inc. | 249 | 171 | 209 |
Cash paid for taxes-other | 132 | 97 | 87 |
Cash paid for interest | 249 | 247 | 238 |
Liabilities Assumed | 0 | 0 | 36 |
Qurate | |||
Net Cash Provided by (Used in) Investing Activities | |||
Payments of Dividends | $ (963) | $ (1,184) | $ (879) |
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, 2018 | 1 | |||||
Balance at Dec. 31, 2018 | $ 6,829 | $ 0 | $ 9,123 | $ (2,269) | $ (144) | $ 119 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 817 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | 50 | 50 | ||||
Net Income (Loss) Attributable to Parent | 767 | 767 | ||||
Proceeds from Contributions from Parent | 50 | 50 | ||||
Dividends paid to Qurate Retail, Inc. and noncontrolling interest | (919) | (879) | (40) | |||
Withholding taxes on net share settlements of stock-based compensation | (4) | (4) | ||||
Stock-based compensation | 39 | 39 | ||||
Common Stock, Shares, Outstanding (ending) at Dec. 31, 2019 | 1 | |||||
Balance at Dec. 31, 2019 | 6,804 | $ 0 | 9,208 | (2,390) | (144) | 130 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Net of Tax | 1 | (1) | ||||
Net income | 910 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | 58 | 58 | ||||
Net Income (Loss) Attributable to Parent | 852 | 852 | ||||
Proceeds from Contributions from Parent | 0 | |||||
Dividends paid to Qurate Retail, Inc. and noncontrolling interest | (1,246) | (1,184) | (62) | |||
Withholding taxes on net share settlements of stock-based compensation | (2) | (2) | ||||
Stock-based compensation | 37 | 37 | ||||
Common Stock, Shares, Outstanding (ending) at Dec. 31, 2020 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other Significant Noncash Transaction, Value of Consideration Received | 1,514 | 1,498 | 16 | |||
Balance at Dec. 31, 2020 | 8,135 | $ 0 | 10,741 | (2,722) | (17) | 133 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Net of Tax | 118 | 111 | 7 | |||
Net income | 851 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | 64 | 64 | ||||
Net Income (Loss) Attributable to Parent | 787 | 787 | ||||
Proceeds from Contributions from Parent | 0 | |||||
Dividends paid to Qurate Retail, Inc. and noncontrolling interest | (1,023) | (963) | (60) | |||
Tax liability allocation to wholly-owned parent | (73) | (73) | ||||
Withholding taxes on net share settlements of stock-based compensation | (20) | (20) | ||||
Stock-based compensation | $ 44 | $ 44 | ||||
Common Stock, Shares, Outstanding (ending) at Dec. 31, 2021 | 1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other Significant Noncash Transaction, Consideration Given | (151) | (151) | ||||
Balance at Dec. 31, 2021 | $ 7,765 | $ 0 | $ 10,687 | $ (2,898) | (146) | 122 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Net of Tax | $ (144) | $ (129) | $ (15) |
Information about QVC's Operati
Information about QVC's Operating Segments (Net Revenue by Geographical Area) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 11,354 | $ 11,472 | $ 10,986 |
United Kingdom | |||
Revenues from External Customers | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 722 | 696 | 640 |
Other countries | |||
Revenues from External Customers | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 161 | 161 | 151 |
UNITED STATES | |||
Revenues from External Customers | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 8,277 | 8,505 | 8,277 |
Japan | |||
Revenues from External Customers | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,167 | 1,132 | 1,028 |
Germany | |||
Revenues from External Customers | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,027 | $ 978 | $ 890 |
Other Comprehensive Income (Com
Other Comprehensive Income (Component of Other Comprehensive Income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments before tax | $ (124) | $ 115 | $ 0 |
Tax (expense) benefit from foreign currency translation gain (loss) | (4) | 3 | 1 |
Foreign currency translation adjustments, net-of-tax | (128) | 118 | 1 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, before Tax | 3 | ||
Recognition Of Previously Unrealized Gains Losses On Debt | 3 | ||
Comprehensive Earnings (Loss) Attributable to Debt Credit Risk Adjustments, Before Tax Amount | (19) | ||
Comprehensive loss attributable to debt credit risk adjustments | (19) | ||
Other Comprehensive Income (Loss), before Tax | (140) | 115 | 0 |
Other Comprehensive Income (Loss), Net of Tax | $ (144) | $ 118 | $ 1 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
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. The Company's U.S. programming is also available on QVC.com and HSN.com, which we refer to as our "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, Amazon Fire, Xfinity Flex and Samsung TV Plus; 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 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 $60 million, $62 million, and $40 million in the years ended December 31, 2021, 2020 and 2019, respectively. The Company is an indirect wholly-owned subsidiary of Qurate Retail, Inc. ("Qurate Retail") (formerly Liberty Interactive Corporation) (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 ("QRG"), formerly QVC Group, a portfolio of brands including QVC, Zulily and Cornerstone Brands, Inc. ("CBI"). 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. Since that time, most local, state and federal governmental agencies imposed various restrictions to prevent the spread of COVID-19, including travel restrictions, local quarantines or stay at home restrictions, and vaccine and testing requirements. The spread of COVID-19 and the various containment measures put in place around the world have resulted in significant disruption to the global economy. Management is not presently aware of any events or circumstances arising from COVID-19 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. In July 2020, QVC implemented a planned workforce reduction. As a result, QVC recorded $20 million of severance expense during the year ended December 31, 2020, which is recorded in selling, general and administrative expense in the consolidated statements of operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
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 $124 million and $240 million at December 31, 2021 and 2020, 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, 2021 and 2020 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 Accounts receivable, net primarily includes amounts owed to the company from customers and from credit card clearing houses net of an allowance for credit losses. The allowance for credit losses is calculated as a percent of accounts receivable at the end of a reporting period, and is based on historical experience, with the change in such allowance being recorded as a provision for credit losses in selling, general and administrative expenses in the consolidated statements of operations. A provision for noncustomer bad debt expense, related to amounts due from vendors for unsold and returned products, is calculated based on an estimate of the probable expected losses and is included in cost of goods sold. See note 3. (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) Leases Leases with an initial term of 12 months or less are not recorded on the balance sheet. Leases with an initial term greater than 12 months are classified as either finance or operating. Finance leases are generally those that we substantially use or pay for the entire asset over its estimated useful life and are recorded in Property and Equipment. All other leases are categorized as operating leases and recorded in Operating lease right-of-use assets. Right-of-use assets and lease liabilities are recognized for both Finance and Operating leases based on the present value of future lease payments using our incremental borrowing rate. Operating lease right-of-use assets are amortized on a straight line basis over the term of the lease. Finance lease right-of-use assets are amortized over the shorter of the estimated useful life or the lease term. Finance lease interest is recognized using the effective interest method over the lease term. (f) 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. 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. (g) 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. (h) 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. (i) 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 Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350. Refer to note 6 for additional information. (j) 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. (k) Revenue recognition Revenue is recognized at the time of shipment to customers. 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. (l) 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. (m) Advertising costs Advertising costs are expensed as incurred. Advertising costs amounted to $288 million, $208 million and $153 million for the years ended December 31, 2021, 2020 and 2019, respectively. These costs were included in selling, general and administrative expenses in the consolidated statements of operations. (n) 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 units) 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. (o) 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. (p) Derivatives The Company accounts for derivatives and hedging activities in accordance with standards issued by the 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. (q) 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. Internal Revenue Code section 951A subjects a U.S. parent of a foreign subsidiary to current U.S. tax on its global intangible low–taxed income (“GILTI”). The U.S. parent generally can deduct a portion of its GILTI and apply a limited deemed paid credit for foreign taxes. In accordance with guidance issued by the FASB, the Company has elected an accounting policy to account for taxes on GILTI as a period cost when incurred and not to provide for deferred taxes related to GILTI. (r) 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 In December 2021, QVC determined it was necessary to record a liability for Zulily's outstanding borrowings on the Fifth Amended and Restated Credit Agreement (see note 8). As QVC and Zulily are both wholly-owned subsidiaries of Qurate Retail this was recorded as an equity transaction with an entity under common control. QVC recorded a $151 million liability which was treated as a return of capital in the consolidated statement of equity. 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 this realignment and upon entering into a payment agreement, QVC Global Corporate Holdings, LLC ("QVC Global"), a subsidiary of the Company, became the primary co- obligor on LIC’s 3.5% Senior Exchangeable Debentures Due 2031 (the “MSI Exchangeables”), which caused the MSI Exchangeables to be serviced directly by cash generated from the Company’s foreign operations. Concurrently, 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 paid annually. In addition, Qurate Retail transferred additional assets and liabilities as part of the transaction. The difference between the total assets received and the liabilities assumed was treated as a capital contribution from Qurate Retail as part of the common control transaction, which is summarized as follows (in millions): Note receivable $ 1,825 Prepaid expenses and other current assets 91 Current portion of debt (397) Accrued liabilities (5) Accumulated other comprehensive loss (16) Capital contribution from Qurate Retail $ 1,498 The assets and liabilities as part of this common control transaction did not result in a change to the reporting entity, therefore the accounting impacts of the common control transaction are recorded on a prospective basis. All MSI Exchangeables not surrendered for exchange were subsequently redeemed on December 13, 2021 (see note 8) (t) Investment in affiliate In 2012, the Company entered into a joint venture with CNR Media Group, a limited liability company owned by China National Radio ("CNR"). The Company owned a 49% interest in a CNR subsidiary, CNR Home Shopping Co., Ltd. ("CNRS") that was 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. During the year ended December 31, 2021, QVC sold its interest in CNRS which resulted in an immaterial loss for the year ended December 31, 2021 recorded in equity in losses of investee in the condensed consolidated statements of operations. As of December 31, 2020 the investment in CNRS was $10 million and is classified within other noncurrent assets on the consolidated balance sheets. During the year ended December 31, 2020, as a result of an impairment review, the Company reduced its investment in CNRS by $29 million which was recorded in equity in losses of investee in the consolidated statement of operations. (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. |
Property and Equipment, Net Pro
Property and Equipment, Net Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 life Land $ 116 129 N/A Buildings and improvements 1,010 1,214 8 - 20 years Furniture and other equipment 632 790 2 - 8 years Broadcast equipment 167 169 2 - 5 years Computer equipment 179 211 2 - 3 years Transponders and terrestrial transmitter (note 9) 172 174 2 - 10 years Projects in progress 44 35 N/A Property and equipment 2,320 2,722 Less: accumulated depreciation (1,354) (1,544) Property and equipment, net $ 966 1,178 N/A - Not applicable. Disposal of assets reduced property and equipment by $418 million and $46 million for the years ended December 31, 2021 and 2020, respectively. The disposal of assets for the year ended December 31, 2021 included assets that were damaged in the Rocky Mount distribution center fire (see note 19) as well as property and equipment related to the sales of QVC's Lancaster and San Antonio facilities. The loss on fixed assets associated with the Rocky Mount fire was offset by expected insurance recoveries. There was no material gain or loss associated with the sales of QVC's facilities. |
Television Distribution Rights,
Television Distribution Rights, Net | 12 Months Ended |
Dec. 31, 2021 | |
Television Distribution Rights [Abstract] | |
Schedule of television distribution rights | Television Distribution Rights, Net Television distribution rights consisted of the following: December 31, (in millions) 2021 2020 Television distribution rights $ 818 814 Less accumulated amortization (673) (751) Television distribution rights, net $ 145 63 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 1.8 years as of December 31, 2021. Amortization expense for television distribution rights was $107 million for the year ended December 31, 2021 and $133 million for each of the years ended December 31, 2020 and 2019. As of December 31, 2021, related amortization expense for each of the next five years ending December 31 was as follows (in millions): 2022 $ 112 2023 28 2024 4 2025 1 2026 — 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 $349 million for each the years ended December 31, 2021 and 2020 and $350 million for the year ended December 31, 2019, which is included as part of operating expenses in the consolidated statements of operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Intangible Assets [Abstract] | ||
Goodwill Disclosure [Text Block] | (i) 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 Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350. Refer to note 6 for additional information. The changes in the carrying amount of goodwill by operating segment (note 16) for the years ended December 31, 2021 and 2020 were as follows: (in millions) QxH QVC-International Total Balance as of December 31, 2019 $ 5,112 859 5,971 Exchange rate fluctuations — 63 63 Balance as of December 31, 2020 5,112 922 6,034 Exchange rate fluctuations — (66) (66) Balance as of December 31, 2021 $ 5,112 856 5,968 | |
Intangible Assets Disclosure | (6) Goodwill and Other Intangible Assets, Net The changes in the carrying amount of goodwill by operating segment (note 16) for the years ended December 31, 2021 and 2020 were as follows: (in millions) QxH QVC-International Total Balance as of December 31, 2019 $ 5,112 859 5,971 Exchange rate fluctuations — 63 63 Balance as of December 31, 2020 5,112 922 6,034 Exchange rate fluctuations — (66) (66) Balance as of December 31, 2021 $ 5,112 856 5,968 For the years ended December 31, 2021, 2020 and 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, 2021, 2020 or 2019. Other intangible assets consisted of the following: December 31, 2021 2020 Weighted average remaining life (years) (in millions) Gross Accumulated Other intangible assets, net Gross Accumulated Other intangible assets, net Purchased and internally developed software $ 945 (659) 286 952 (663) 289 2.4 Affiliate and customer relationships 2,832 (2,598) 234 2,845 (2,564) 281 5.0 Debt origination fees 9 — 9 10 (4) 6 4.8 Tradenames (indefinite life) 2,878 — 2,878 2,878 — 2,878 N/A $ 6,664 (3,257) 3,407 6,685 (3,231) 3,454 N/A - Not applicable. Disposal of assets reduced gross other intangible assets by $116 million and $48 million for the years ended December 31, 2021 and 2020, respectively. Amortization expense for other intangible assets was $163 million for the year ended December 31, 2021 and $149 million for each of the years ended December 31, 2020 and 2019. For 2021, the Company utilized a qualitative impairment assessment for both the QVC and HSN tradenames and there were no impairment losses recorded during the years ended December 31, 2021 and 2020. For 2019, 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. These fair value measurements are Level 3 fair value measurements based on unobservable inputs. Accumulated impairment loss as of December 31, 2021 is $177 million. As of December 31, 2021, the related amortization and interest expense for each of the next five years ending December 31 was as follows (in millions): 2022 $ 179 2023 149 2024 104 2025 49 2026 48 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities [Abstract] | |
Accrued liabilities | (7) Accrued Liabilities Accrued liabilities consisted of the following: December 31, (in millions) 2021 2020 Accounts payable non-trade $ 364 408 Allowance for sales returns 242 267 Accrued compensation and benefits 151 214 Income taxes 132 98 Other 290 315 $ 1,179 1,302 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Long-Term Debt and Finance Lease Obligations Long-term debt and finance lease obligations consisted of the following: December 31, (in millions) 2021 2020 3.5% Exchangeable Senior Debentures due 2031 $ — 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 Senior secured credit facility (1) 481 — Finance lease obligations (note 9) 157 168 Less debt issuance costs, net (43) (50) Total debt and finance lease obligations 5,043 4,959 Less current portion (20) (410) Long-term portion of debt and finance lease obligations $ 5,023 4,549 (1) Includes $151 million of Zulily's outstanding borrowings as of December 31, 2021. Exchangeable Senior Debentures 3.5% Exchangeable Senior Debentures due 2031 As part of the common control transaction with Qurate Retail that was completed in December 2020, QVC Global, a subsidiary of the Company, became the primary co-obligor of the MSI Exchangeables, exchangeable for common stock of Motorola Solutions, Inc. (“MSI common stock”), and acquired all of the rights and liabilities associated with certain related hedges. The Company elected to account for its MSI Exchangeables using the fair value option. Accordingly, changes in the fair value of these instruments have been recognized as 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 classified the MSI Exchangeables as a current liability for financial reporting purposes as the MSI Exchangeables were exchangeable at the option of the holder at any time. Although we did not own underlying shares, the Company entered into certain derivative transactions in order to hedge against upward price fluctuations on certain shares of MSI common stock. Such derivative instruments were recognized in the other current assets line item in the condensed consolidated balance sheets, and marked to fair value each reporting period. The changes in fair value have been recognized in gains (losses) on financial instruments in the condensed statement of operations. On October 27, 2021, a notice was issued to all holders to redeem any and all outstanding MSI Exchangeables on December 13, 2021. Bondholders had until the close of business on December 10, 2021 to exchange their bonds. During the fourth quarter of 2021, QVC Global delivered MSI shares, which were acquired pursuant to a forward purchase contract, to holders of the MSI Exchangeables with a fair value of approximately $573 million to settle the exchanges of the MSI Exchangeables. For holders who did not participate in the exchange, their bonds were redeemed on December 13, 2021 at adjusted principal, plus accrued interest and dividend pass-thru for a total cash payment of approximately $1 million. No MSI Exchangeables remain outstanding as of December 31, 2021. As a result of the exchange and the redemption, the Company recorded a loss on extinguishment of debt in the consolidated statements of operations of $7 million for the year ended December 31, 2021. 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 interest on 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. 6.25% 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, 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. 4.375% Senior Secured Notes due 2028 On August 20, 2020, QVC completed a registered debt offering for $500 million of the 4.375% Senior Secured Notes due 2028 (the "2028 Notes") at par. Interest on the 2028 Notes will be paid semi-annually in March and September, with payments commencing on March 1, 2021. In connection with the offering of the 2028 Notes, QVC completed a cash tender offer (the "Tender Offer") to purchase any and all of its outstanding 5.125% Senior Secured Notes due 2022 (the "2022 Notes"). QVC also issued a notice of redemption exercising its right to optionally redeem any of the 2022 Notes that remained outstanding following the Tender Offer. As a result of the Tender Offer and the redemption, the Company recorded a loss on extinguishment of debt in the consolidated statements of operations of $42 million for the year ended December 31, 2020. Senior Secured Credit Facility On October 27, 2021, QVC entered into the Fifth Amended and Restated Credit Agreement with QVC, Zulily, CBI, and QVC Global, each a direct or indirect wholly owned subsidiary of Qurate Retail, as borrowers (collectively, the “Borrowers”). The Fifth Amended and Restated Credit Agreement is a multi-currency facility providing for a $3.25 billion revolving credit facility, with a $450 million sub-limit for letters of credit and an alternative currency revolving sub-limit equal to 50% of the revolving commitments thereunder. The Fifth Amended and Restated Credit Agreement may be borrowed by any Borrower (see note 14), with each Borrower jointly and severally liable for the outstanding borrowings. Borrowings bear interest at either the alternate base rate (“ABR Rate”) or a LIBOR-based rate (or the applicable non-U.S. Dollar equivalent rate) (“Term Benchmark/RFR Rate”) at the applicable Borrower’s election in each case plus a margin. Borrowings that are ABR Rate loans will bear interest at a per annum rate equal to the base rate plus a margin that varies between 0.25% and 0.625% depending on the Borrowers’ combined ratio of consolidated total debt to consolidated EBITDA (the “consolidated leverage ratio”). Borrowings that are Term Benchmark/RFR Rate loans will bear interest at a per annum rate equal to the applicable rate plus a margin that varies between 1.25% and 1.625% depending on the Borrowers’ 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, CBI, QVC Global or any other borrower (other than QVC) is removed, at the election of QVC, as a borrower thereunder, all of its loans must be repaid and its letters of credit are terminated or cash collateralized. Any amounts prepaid may be reborrowed. The facility matures on October 27, 2026. Payment of loans may be accelerated following certain customary events of default. 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 senior secured credit facility plus any additional amount it expects to repay on behalf of Zulily or CBI. As of December 31, 2021, there was $151 million borrowed by Zulily on the senior secured credit facility and QVC determined it was necessary to record a liability for the full amount. As part of the common control transaction (see note 2(s)) with Qurate Retail in December 2021, QVC recorded a liability for $151 million of Zulily's outstanding borrowings included in the long-term portion of debt and finance lease obligations on the consolidated balance sheet. QVC had $2.75 billion available under the terms of the senior secured credit facility at December 31, 2021, on which Zulily and CBI may also borrow. The interest rate on the senior secured credit facility was 1.5% at December 31, 2021. The payment and performance of the Borrowers’ obligations under the Fifth Amended and Restated Credit Agreement are guaranteed by each of QVC’s, QVC Global’s, Zulily’s and CBI’s Material Domestic Subsidiaries (as defined in the Fifth Amended and Restated Credit Agreement), if any, and certain other subsidiaries of any Borrower that such Borrower has chosen to provide guarantees. Further, the borrowings under the Fifth Amended and Restated Credit Agreement are secured, pari passu with QVC’s existing notes, by a pledge of all of QVC’s equity interests. The borrowings under the Fifth Amended and Restated Credit Agreement are also secured by a pledge of all of Zulily’s and CBI’s equity interests. The Fifth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including certain restrictions on the Borrowers 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 Borrowers’ consolidated leverage ratio. Five Year Maturities The annual principal maturities of QVC's debt, based on stated maturity dates, for each of the next five years are as follows: (in millions) Debt (1) 2022 $ — 2023 750 2024 600 2025 600 2026 481 (1) Amounts exclude finance lease obligations (see Note 9) and the issue discounts on the 4.375%, 4.45%, 4.85%, 5.45% and 5.95% Senior Secured Notes. Interest Rate Swap Arrangements In July 2019, the Company entered into a three-year interest 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 and the fair value of the swap instrument was in a net liability position of $1 million and $3 million as of December 31, 2021 and 2020, respectively. The swap arrangement was included in accrued liabilities and other long-term liabilities as of December 31, 2021 and 2020, respectively. 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% which expired in January 2020. Changes in the fair value of the swaps are reflected in gains (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, 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 4.7% as of December 31, 2021. |
Leases and Transponder Service
Leases and Transponder Service Agreements | 12 Months Ended |
Dec. 31, 2021 | |
Leases and Transponder Service Agreements [Abstract] | |
Lease 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 a warehouse. QVC also has leases for data processing equipment, facilities, office space and land that are classified as operating leases. Our leases have remaining lease terms of less than 1 year to 13 years, some of which may include the option to extend or terminate the leases. The components of lease cost for the years ended December 31, 2021, 2020 and 2019, were as follows: Year ended December 31, (in millions) 2021 2020 2019 Finance lease cost Depreciation of leased assets $ 19 19 20 Interest on lease liabilities 8 8 9 Total finance lease cost 27 27 29 Operating lease cost 42 39 32 Total lease cost $ 69 66 61 The remaining weighted-average lease term and the weighted-average discount rate were as follows: December 31, 2021 Weighted-average remaining lease term (years): Finance leases 7.7 Operating leases 10.5 Weighted-average discount rate: Finance leases 5.2 % Operating leases 6.0 % Supplemental balance sheet information related to leases was as follows: December 31, (in millions) 2021 2020 Operating Leases: Operating lease right-of-use assets $ 201 221 Accrued liabilities $ 26 25 Other long-term liabilities 177 195 Total operating lease liabilities $ 203 220 Finance Leases: Property and equipment $ 277 278 Accumulated depreciation (151) (141) Property and equipment, net $ 126 137 Current portion of debt and finance lease obligations $ 20 18 Long-term portion of debt and finance lease obligations 137 150 Total finance lease liabilities $ 157 168 Supplemental cash flow information related to leases for the years ended December 31, 2021, 2020 and 2019 was as follows: Year ended December 31, (in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 38 44 35 Operating cash flows for finance leases 8 8 9 Financing cash flows for finance leases 18 18 22 Right-of-use assets obtained in exchange for lease obligations: Operating leases 11 31 151 Finance leases $ 11 — 16 Future payments under noncancelable operating leases and finance leases with initial terms of one year or more as of December 31, 2021 consisted of the following: (in millions) Finance leases Operating leases Total leases 2022 $ 27 37 64 2023 27 29 56 2024 26 25 51 2025 23 21 44 2026 22 20 42 Thereafter 67 148 215 Total lease payments 192 280 472 Less: imputed interest (35) (77) (112) Total lease liabilities $ 157 203 360 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 has 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, 2021 | |
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, 2021 (in millions) QxH QVC-International Total Home $ 3,278 1,237 4,515 Beauty 1,223 723 1,946 Apparel 1,291 492 1,783 Accessories 980 265 1,245 Electronics 964 119 1,083 Jewelry 359 228 587 Other revenue 182 13 195 Total net revenue $ 8,277 3,077 11,354 Year ended December 31, 2020 (in millions) QxH QVC-International Total Home $ 3,529 1,199 4,728 Beauty 1,261 724 1,985 Apparel 1,170 437 1,607 Accessories 944 260 1,204 Electronics 1,069 122 1,191 Jewelry 363 216 579 Other revenue 169 9 178 Total net revenue $ 8,505 2,967 11,472 Year ended December 31, 2019 (in millions) QxH QVC-International Total Home $ 3,053 1,010 4,063 Beauty 1,304 659 1,963 Apparel 1,291 439 1,730 Accessories 919 262 1,181 Electronics 1,142 104 1,246 Jewelry 402 221 623 Other revenue 166 14 180 Total net revenue $ 8,277 2,709 10,986 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 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 extends payment terms with its customers of one year or less and does not consider the time value of money when recognizing revenue. 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, 2021, 2020 and 2019 aggregated to $1,922 million, $1,976 million and $2,138 million, respectively. A summary of activity in the allowance for sales returns, recorded on a gross basis for the years ended December 31, 2021, 2020 and 2019 was as follows: (in millions) Balance Additions- Deductions Balance 2021 $ 267 1,922 (1,947) 242 2020 238 1,976 (1,947) 267 2019 242 2,138 (2,142) 238 |
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, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options and Other Share-Based Payments | Stock-Based Compensation Certain QVC employees and officers may receive stock options ("Options") and restricted stock units ("RSUs") in Series A Qurate Retail common stock (“QRTEA”) in accordance with Qurate Retail's Incentive Plan (the "Qurate Incentive Plan"). In 2021, holders of QRTEA shares received a special cash dividend ("Special Cash Dividend") in the amount of $1.25 per common share. As a result, the outstanding Options of QRTEA were adjusted pursuant to the anti-dilution provisions of the Qurate Incentive Plans under which the Options were granted. Adjustments to the exercise prices and the numbers of shares subject to the original awards were made to preserve the intrinsic values prior to each Special Cash Dividend. Outstanding RSUs received the Special Cash Dividend which was subject to the same vesting schedules as those applicable to the corresponding original QRTEA RSU. (a) Stock options A summary of the activity of the Qurate Incentive Plans with respect to the QRTEA Options granted to QVC employees and officers as of and during the year ended December 31, 2021 is presented below: Options Weighted Aggregate Weighted average remaining Outstanding as of January 1, 2021 24,546,114 $ 10.98 $ 60,652 3.9 Granted 1,949,619 11.45 Exercised (2,201,183) 5.64 Forfeited (2,986,048) 12.87 Special Cash Dividend anti-dilution adjustment 3,625,561 9.64 Outstanding as of December 31, 2021 24,934,063 9.65 31,372 3.3 Exercisable as of December 31, 2021 17,023,527 $ 11.56 7,811 2.3 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 was $15 million during the year ended December 31, 2021 and $2 million for each of the years ended December 31, 2020 and 2019. The weighted average fair value at date of grant of a QRTEA Option granted during the years ended December 31, 2021, 2020 and 2019 was $5.70, $1.97 and $4.08, respectively. During the years ended December 31, 2021, 2020 and 2019, 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: 2021 2020 2019 Expected volatility 57.0 % 46.8 % 30.1 % Expected term (years) 5.8 5.7 5.7 Risk free interest rate 1.0 % 0.7 % 2.2 % 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, 2021, 2020 and 2019, the Company recorded $9 million, $17 million and $22 million, respectively, of stock-based compensation expense related to the Options. As of December 31, 2021, the total unrecognized compensation cost related to unvested Options was $15 million. Such amount will be recognized in the Company's consolidated statement of operations over a weighted average period of 2.5 years. (b) Restricted stock units A summary of the activity of the Qurate Incentive Plans with respect to the QRTEA RSUs granted to QVC employees and officers as of and during the year ended December 31, 2021 is presented below: Restricted shares Weighted average Outstanding as of January 1, 2021 6,734,989 $ 7.04 Granted 5,095,154 11.58 Vested (3,157,337) 8.11 Forfeited (575,342) 8.70 Outstanding as of December 31, 2021 8,097,464 9.36 During the years ended December 31, 2021, 2020 and 2019, the Company recorded $32 million, $16 million and $17 million, respectively, of stock-based compensation expense related to these awards. As of December 31, 2021, the total unrecognized compensation cost related to unvested RSUs of common stock was $53 million. Such amount will be recognized in the Company's consolidated statement of operations over a weighted average period of 2.7 years. Fair value of RSUs is calculated based on the market price on the day of the granted shares. The weighted average grant date fair value of the QRTEA RSUs granted to QVC employees and officers during the years ended December 31, 2021, 2020 and 2019 was $11.58, $4.51, and $16.83, respectively. The aggregate fair value of all RSUs of common stock that vested during the years ended December 31, 2021, 2020 and 2019 was $38 million, $7 million and $16 million, respectively. As of December 31, 2021, the Company had approximately 117,000 unvested RSUs of Qurate Retail 8.0% Series A Cumulative Redeemable Preferred Stock held by certain officers and employees of the Company. During the year ended December 31, 2021, the Company recorded an incremental $3 million of stock-based compensation expense related to these shares and the total incremental unrecognized compensation cost related to these awards as of December 31, 2021 was $4 million. Such amount will be recognized in the Company’s consolidated statements of operations over a weighted average period of 2.2 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes Income tax expense consisted of the following: Years ended December 31, (in millions) 2021 2020 2019 Current: U.S. federal $ 329 187 141 State and local 44 55 37 Foreign jurisdictions 116 104 93 Total 489 346 271 Deferred: U.S. federal (66) (15) (11) State and local (13) 21 3 Foreign jurisdictions (2) (15) (1) Total (81) (9) (9) Total income tax expense $ 408 337 262 Pre-tax income was as follows: Years ended December 31, (in millions) 2021 2020 2019 QxH $ 883 931 843 QVC-International 376 316 236 Consolidated QVC $ 1,259 1,247 1,079 Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 21% in 2021, 2020 and 2019, as a result of the following: Years ended December 31, 2021 2020 2019 Provision at statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 1.9 4.2 2.9 Foreign taxes 1.4 2.0 1.0 Write-off of investment and notes of foreign subsidiary — — (3.1) Valuation allowance 1.0 0.4 3.2 Tax on foreign earnings, net of federal tax benefits 5.0 (0.4) (0.2) Other permanent differences 2.3 0.4 0.4 Corporate restructuring — 0.9 — Impact of foreign currency tax regulation — — (0.7) Other, net (0.2) (1.5) (0.2) Total income tax expense 32.4 % 27.0 % 24.3 % During the fourth quarter of 2021, the Company, through a wholly owned foreign subsidiary, recognized income related to the exchange and redemption of the outstanding MSI Exchangeables and the extinguishment of related hedges. The income is subject to tax under the U.S Global Intangible Low-taxed Income (“GILTI”) rules. The tax effect of this GILTI income including the federal tax benefit of related foreign tax credits, is treated by the Company as a period cost. In addition, the Company recorded a U.S. federal tax benefit for foreign derived intangible income deductions claimed on royalty income recognized by the Company in the U.S. during 2021. The tax effect of these items is included in Tax on foreign earnings, net of federal tax benefits in the above table. During December of 2020, the Company effected a corporate restructuring transaction whereby a wholly-owned U.S. subsidiary, which owns the Company's foreign business units, became a wholly-owned foreign subsidiary. The corporate restructuring changed the manner in which the income of the foreign business units is subjected to tax in the U.S. As a result of the corporate restructuring, income tax expense of $11 million was recognized during the year ended December 31, 2020. 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) 2021 2020 Deferred tax assets: Accounts receivable, principally due to the allowance for credit losses and related reserves for the uncollectible accounts $ 21 28 Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 32 37 Allowance for sales returns 30 28 Deferred revenue 99 5 Deferred compensation 10 32 Unrecognized federal and state tax benefits 15 14 Net operating loss and other carryforwards 116 116 Foreign tax credits carryforward 54 48 Lease obligations 63 69 Cumulative translation of foreign currencies 8 7 Accrued liabilities 10 8 Other 19 14 Subtotal 477 406 Valuation allowance (171) (166) Total deferred tax assets 306 240 Deferred tax liabilities: Depreciation and amortization (838) (853) Lease assets (57) (64) Other receivable (11) — Total deferred tax liabilities (906) (917) Net deferred tax liability $ (600) (677) 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 2021 net deferred tax liability above includes deferred tax assets of $37 million relating to foreign jurisdictions which are included within other noncurrent assets in the consolidated balance sheet and deferred tax liabilities of $637 million in domestic jurisdictions which are included within deferred income taxes in the consolidated balance sheet. The 2020 net deferred tax liability above includes deferred tax assets of $34 million relating to foreign jurisdictions which are included within other noncurrent assets in the consolidated balance sheet and deferred tax liabilities of $711 million in domestic jurisdictions which are included within deferred income taxes in the consolidated balance sheet. 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, 2021 was a capital contribution of $73 million, primarily related to foreign tax credit carryovers being utilized in Qurate's consolidated tax return in excess of those recognized by QVC during the 2021 tax year. There were no material differences recorded during the year-ended December 31, 2020. The difference recorded during the year ended December 31, 2019 was $11 million in dividends which was primarily related to foreign tax credits recognized by QVC and not utilized in Qurate Retail’s consolidated tax return during the 2019 tax year. The amounts of the tax-related payable balance due to Qurate Retail as of December 31, 2021 and 2020 were $85 million and $47 million, respectively, and are included in accrued liabilities in the consolidated balance sheets. A reconciliation of the 2020 and 2021 beginning and ending amount of the liability for unrecognized tax benefits is as follows: (in millions) Balance at January 1, 2020 $ 60 Increases related to prior year tax positions 5 Decreases related to prior year tax positions (6) Decreases related to settlements with taxing authorities — Increases related to current year tax positions 8 Balance at December 31, 2020 67 Increases related to prior year tax positions 1 Decreases related to prior year tax positions (5) Decreases related to settlements with taxing authorities — Increases related to current year tax positions 10 Balance at December 31, 2021 $ 73 Included in the balance of unrecognized tax benefits as of December 31, 2021 and 2020 are potential benefits of $58 million (net of a $15 million federal tax effect) and $53 million (net of a $14 million federal tax effect), respectively, that if recognized, would be reflected in income tax expense and affect the effective rate. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in interest expense in the consolidated statements of operations. The Company did not have a material amount of interest or tax penalties accrued related to unrecognized tax benefits for the years ended December 31, 2021, 2020 or 2019. The Company has tax positions for which the amount of related unrecognized tax benefits could change during 2022. These consist of nonfederal transfer pricing and other nonfederal tax issues. The amount of unrecognized tax benefits related to these issues could have an impact of $2 million in 2022 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, 2021, the Company's tax years through 2017 are closed for federal income tax purposes, and the Internal Revenue Service ("IRS") has completed its examination of the Company's 2018, and 2019 tax years. The Company's 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 files income tax returns in various states and foreign jurisdictions. As of December 31, 2021, the Company was under examination in Pennsylvania, New York City, and the U.K.. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions During the years ended December 31, 2021, 2020 and 2019, QVC and Zulily engaged in multiple transactions relating to sales, sourcing of merchandise, marketing initiatives, and business advisory services. QVC allocated expenses to Zulily of $8 million for each of the years ended December 31, 2021 and 2020, respectively, and $7 million for the year ended December 31, 2019. Zulily allocated expenses of $8 million, $11 million, and $9 million to QVC for the years ended December 31, 2021, 2020, and 2019, 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. As of December 31, 2021, there were no borrowings on the Promissory Note. |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value disclosures | Financial Instruments and Fair Value MeasurementsFor 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 measures the fair value of money market funds based on quoted prices in active markets for identical assets. Money market funds are included as cash equivalents Level 1 fair value instruments in the table below. The 2067 Notes (ticker: QVCD) and the 2068 Notes (ticker: QVCC) are traded on the New York Stock Exchange, which the Company considers to be an "active market," as defined by U.S. GAAP. Therefore, these Notes are measured based on quoted prices in an active market and included as Level 1 fair value instruments in the table below. The remainder of the Company's debt instruments and derivative instruments are considered Level 2 fair value instruments and measured based on quoted market prices that are not considered to be traded on "active markets." Accordingly, these financial instruments are reported in the below tables as Level 2 fair value instruments. The Company's assets and liabilities measured or disclosed at fair value were as follows: Fair value measurements at December 31, 2021 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 124 124 — — Current liabilities: Interest rate swap arrangements (note 8) 1 — 1 — Long-term liabilities: Debt (note 8) 5,076 745 4,331 — Fair value measurements at December 31, 2020 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 240 240 — — Financial instrument asset (note 8) 23 — 23 — Current liabilities: Debt (note 8) 393 — 393 — Long-term liabilities: Debt (note 8) 4,705 743 3,962 — Interest rate swap arrangements (note 8) 3 — 3 — |
Information about QVC's Opera_2
Information about QVC's Operating Segments | 12 Months Ended |
Dec. 31, 2021 | |
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 (excluding fire related costs, net), operating expenses, and selling, general and administrative expenses (excluding expenses related to the closure of operations in France ("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, fire related costs, net, 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, 2021, 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, 2021, 2020 and 2019, the costs allocated to QVC-International totaled $37 million, $33 million and $27 million, respectively. Performance measures Years ended December 31, 2021 2020 2019 (in millions) Net Adjusted Net Adjusted Net Adjusted QxH $ 8,277 1,439 8,505 1,547 8,277 1,536 QVC-International 3,077 562 2,967 510 2,709 446 Consolidated QVC $ 11,354 2,001 11,472 2,057 10,986 1,982 Other information Years ended December 31, 2021 2020 2019 (in millions) Depreciation Amortization Depreciation Amortization Depreciation Amortization QxH $ 105 256 116 270 113 269 QVC-International 54 14 55 12 73 13 Consolidated QVC $ 159 270 171 282 186 282 Years ended December 31, 2021 2020 (in millions) Total Capital Total Capital QxH $ 13,962 169 14,103 182 QVC-International 2,226 41 2,455 36 Consolidated QVC $ 16,188 210 16,558 218 Property and equipment, net of accumulated depreciation, by segment were as follows: December 31, (in millions) 2021 2020 QxH $ 610 771 QVC-International 356 407 Consolidated QVC $ 966 1,178 The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: Years ended December 31, (in millions) 2021 2020 2019 Adjusted OIBDA $ 2,001 2,057 1,982 Fire related costs, net (21) — — Impairment loss — — (147) Transaction related costs — — (1) Stock-based compensation (44) (37) (39) Depreciation and amortization (429) (453) (468) Operating Income 1,507 1,567 1,327 Equity in losses of investee (2) (30) — Gains (losses) on financial instruments 8 3 (5) Interest expense, net (249) (257) (240) Foreign currency (loss) gain (9) 6 (3) Loss on extinguishment of debt (7) (42) — Other Income 11 — — Income before income taxes $ 1,259 1,247 1,079 The following table summarizes net revenues based on revenues generated by subsidiaries located within the identified geographic area: Years ended December 31, (in millions) 2021 2020 2019 United States $ 8,277 8,505 8,277 Japan 1,167 1,132 1,028 Germany 1,027 978 890 United Kingdom 722 696 640 Other countries 161 161 151 Consolidated QVC $ 11,354 11,472 10,986 The following table summarizes property and equipment, net of accumulated depreciation, based on physical location: December 31, (in millions) 2021 2020 United States $ 610 771 Germany 133 150 Japan 123 149 United Kingdom 71 75 Other countries 29 33 Consolidated QVC $ 966 1,178 |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
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) Comprehensive earnings attributable to debt credit risk adjustments Recognition of previously unrealized losses on debt, net Foreign currency translation adjustments AOCL Balance as of January 1, 2019 $ — — (144) (144) Other comprehensive income attributable to QVC, Inc. stockholder — — — — Balance as of December 31, 2019 — — (144) (144) Other comprehensive income attributable to QVC, Inc. stockholder — — 111 111 Common control transaction with Qurate Retail 16 — — 16 Balance as of December 31, 2020 16 — (33) (17) Other comprehensive income attributable to QVC, Inc. stockholder (19) 3 (113) (129) Balance as of December 31, 2021 $ (3) 3 (146) (146) As part of the December 2020 common control transaction with Qurate Retail (see note 2(s)), the Company assumed the balance of accumulated other comprehensive income attributable to the debt credit risk adjustments associated with the MSI Exchangeables. All MSI Exchangeables not surrendered for exchange were redeemed on December 13, 2021 and the balance of accumulated other comprehensive income associated with the MSI Exchangeables was recognized (see note 8). 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, 2021: Foreign currency translation adjustments $ (124) (4) (128) Recognition of previously unrealized losses on debt, net 3 — 3 Comprehensive loss attributable to debt credit risk adjustments (19) — (19) Other comprehensive loss (140) (4) (144) Year ended December 31, 2020: Foreign currency translation adjustments $ 115 3 118 Other comprehensive income 115 3 118 Year ended December 31, 2019: Foreign currency translation adjustments $ — 1 1 Other comprehensive income — 1 1 |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit PlansIn 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 $25 million for each of the years ended December 31, 2021 and 2020, and $21 million for the year ended December 31, 2019. |
Unusual or Infrequently Occurri
Unusual or Infrequently Occurring Items | 12 Months Ended |
Dec. 31, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Unusual or Infrequent Items, or Both, Disclosure | (19) Fire at Rocky Mount Fulfillment Center On December 18, 2021, QVC experienced a fire at its Rocky Mount, Inc. fulfillment center in North Carolina. Rocky Mount was the Company’s second-largest fulfillment center for QxH and the Company’s primary returns center for hard goods. The Company maintains property, general liability and business interruption insurance coverage. Based on the provisions of QVC's insurance policies, the Company has determined that recovery of certain fire related costs incurred as of December 31, 2021 is probable and recorded $229 million of insurance recoveries. During the year ended December 31, 2021, the Company received $100 million of insurance proceeds, representing an advance of funds. As a result, the insurance receivable balance was $129 million as of December 31, 2021 and was recorded in accounts receivable in the Consolidated Balance Sheet. As of the date of this report, we are still in the process of assessing damage to property and inventory and submitting relevant insurance claims. There is approximately $117 million of inventory at the Rocky Mount facility that is currently being assessed for damage and is included in Inventories in the consolidated balance sheet as of December 31, 2021. We anticipate any additional inventory losses will be covered by our insurance policies. We expect to continue to record additional costs and recoveries until the property and inventory assessment is completed and the insurance claim is fully settled. Certain incremental costs incurred to date related to the fire and related insurance recovery for the year ended December 31, 2021 are as follows: Year ended December 31 ($ in millions) 2021 Loss on inventory $ 134 Loss on fixed assets 87 Other fire related costs (1) 29 Total 250 Less: Insurance Recoveries received (100) Less: Expected insurance recoveries (129) Fire related costs, net $ 21 (1) Amount includes $21 million of costs that will not be reimbursed by QVC's insurance policies primarily related to personnel costs. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsQVC declared and paid dividends to Qurate Retail in the amount of $52 million from January 1, 2022 to February 25, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Cash and cash equivalents policy | (a) Cash and cash equivalentsAll highly liquid investments purchased with an original maturity of three months or less are classified as cash equivalents. Cash equivalents were $124 million and $240 million at December 31, 2021 and 2020, 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, 2021 and 2020 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 receivableAccounts receivable, net primarily includes amounts owed to the company from customers and from credit card clearing houses net of an allowance for credit losses. The allowance for credit losses is calculated as a percent of accounts receivable at the end of a reporting period, and is based on historical experience, with the change in such allowance being recorded as a provision for credit losses in selling, general and administrative expenses in the consolidated statements of operations. A provision for noncustomer bad debt expense, related to amounts due from vendors for unsold and returned products, is calculated based on an estimate of the probable expected losses and is included in cost of goods sold. See note 3. |
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 | (f) 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. 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 | (g) 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 | (h) 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] | (i) 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 Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350. Refer to note 6 for additional information. The changes in the carrying amount of goodwill by operating segment (note 16) for the years ended December 31, 2021 and 2020 were as follows: (in millions) QxH QVC-International Total Balance as of December 31, 2019 $ 5,112 859 5,971 Exchange rate fluctuations — 63 63 Balance as of December 31, 2020 5,112 922 6,034 Exchange rate fluctuations — (66) (66) Balance as of December 31, 2021 $ 5,112 856 5,968 |
Foreign currency transactions and translations policy | (j) 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. |
Revenue recognition policy | (k) Revenue recognition Revenue is recognized at the time of shipment to customers. 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 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 extends payment terms with its customers of one year or less and does not consider the time value of money when recognizing revenue. 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, 2021, 2020 and 2019 aggregated to $1,922 million, $1,976 million and $2,138 million, respectively. A summary of activity in the allowance for sales returns, recorded on a gross basis for the years ended December 31, 2021, 2020 and 2019 was as follows: (in millions) Balance Additions- Deductions Balance 2021 $ 267 1,922 (1,947) 242 2020 238 1,976 (1,947) 267 2019 242 2,138 (2,142) 238 |
Cost of sales policy | (l) 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 | (m) Advertising costs Advertising costs are expensed as incurred. Advertising costs amounted to $288 million, $208 million and $153 million for the years ended December 31, 2021, 2020 and 2019, respectively. These costs were included in selling, general and administrative expenses in the consolidated statements of operations. |
Share-based compensation policy | (n) 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 units) 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 | (o) 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 | (p) Derivatives The Company accounts for derivatives and hedging activities in accordance with standards issued by the 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. |
Income tax policy | (q) 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. |
Consolidation policy | (r) 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 In December 2021, QVC determined it was necessary to record a liability for Zulily's outstanding borrowings on the Fifth Amended and Restated Credit Agreement (see note 8). As QVC and Zulily are both wholly-owned subsidiaries of Qurate Retail this was recorded as an equity transaction with an entity under common control. QVC recorded a $151 million liability which was treated as a return of capital in the consolidated statement of equity. 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 this realignment and upon entering into a payment agreement, QVC Global Corporate Holdings, LLC ("QVC Global"), a subsidiary of the Company, became the primary co- obligor on LIC’s 3.5% Senior Exchangeable Debentures Due 2031 (the “MSI Exchangeables”), which caused the MSI Exchangeables to be serviced directly by cash generated from the Company’s foreign operations. Concurrently, 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 paid annually. In addition, Qurate Retail transferred additional assets and liabilities as part of the transaction. The difference between the total assets received and the liabilities assumed was treated as a capital contribution from Qurate Retail as part of the common control transaction, which is summarized as follows (in millions): Note receivable $ 1,825 Prepaid expenses and other current assets 91 Current portion of debt (397) Accrued liabilities (5) Accumulated other comprehensive loss (16) Capital contribution from Qurate Retail $ 1,498 The assets and liabilities as part of this common control transaction did not result in a change to the reporting entity, therefore the accounting impacts of the common control transaction are recorded on a prospective basis. All MSI Exchangeables not surrendered for exchange were subsequently redeemed on December 13, 2021 (see note 8) |
Equity method investments policy | (t) Investment in affiliate In 2012, the Company entered into a joint venture with CNR Media Group, a limited liability company owned by China National Radio ("CNR"). The Company owned a 49% interest in a CNR subsidiary, CNR Home Shopping Co., Ltd. ("CNRS") that was 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. During the year ended December 31, 2021, QVC sold its interest in CNRS which resulted in an immaterial loss for the year ended December 31, 2021 recorded in equity in losses of investee in the condensed consolidated statements of operations. As of December 31, 2020 the investment in CNRS was $10 million and is classified within other noncurrent assets on the consolidated balance sheets. During the year ended December 31, 2020, as a result of an impairment review, the Company reduced its investment in CNRS by $29 million which was recorded in equity in losses of investee in the consolidated statement of operations. |
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. |
Lessee, Leases | (e) Leases Leases with an initial term of 12 months or less are not recorded on the balance sheet. Leases with an initial term greater than 12 months are classified as either finance or operating. Finance leases are generally those that we substantially use or pay for the entire asset over its estimated useful life and are recorded in Property and Equipment. All other leases are categorized as operating leases and recorded in Operating lease right-of-use assets. Right-of-use assets and lease liabilities are recognized for both Finance and Operating leases based on the present value of future lease payments using our incremental borrowing rate. Operating lease right-of-use assets are amortized on a straight line basis over the term of the lease. Finance lease right-of-use assets are amortized over the shorter of the estimated useful life or the lease term. Finance lease interest is recognized using the effective interest method over the lease term. |
Receivables, Loans, Notes Recei
Receivables, Loans, Notes Receivable, and Others (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [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 and a receivable is recorded for the outstanding amount 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 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 $144 million, $140 million and $124 million was recorded in net revenue during the years ended December 31, 2021, 2020 and 2019, respectively. The Company also accepts major credit cards for its sales. Accounts receivable from major credit cards represents amounts owed to QVC from the credit card clearing houses for amounts billed but not yet collected. Accounts receivable consisted of the following: December 31, (in millions) 2021 2020 Installment payment option $ 1,284 $ 1,368 Major credit cards and customers 237 262 Trade accounts receivable 1,521 1,630 Other receivables (1) 223 96 Accounts receivable 1744 1726 Less allowance for credit losses (99) (124) Accounts receivable, net $ 1,645 1,602 (1) Includes $129 million insurance receivable as of 12/31/2021 related to the Rocky Mount fire (see note 19). A summary of activity in the allowance for credit losses was as follows: (in millions) Balance Additions- Deductions- Balance 2021 $ 124 49 (74) 99 2020 123 89 (88) 124 2019 112 124 (113) 123 |
Revenue (Policies)
Revenue (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue [Abstract] | |
Revenue recognition policy | (k) Revenue recognition Revenue is recognized at the time of shipment to customers. 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 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 extends payment terms with its customers of one year or less and does not consider the time value of money when recognizing revenue. 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, 2021, 2020 and 2019 aggregated to $1,922 million, $1,976 million and $2,138 million, respectively. A summary of activity in the allowance for sales returns, recorded on a gross basis for the years ended December 31, 2021, 2020 and 2019 was as follows: (in millions) Balance Additions- Deductions Balance 2021 $ 267 1,922 (1,947) 242 2020 238 1,976 (1,947) 267 2019 242 2,138 (2,142) 238 |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Common Control Transaction | Note receivable $ 1,825 Prepaid expenses and other current assets 91 Current portion of debt (397) Accrued liabilities (5) Accumulated other comprehensive loss (16) Capital contribution from Qurate Retail $ 1,498 |
Accounts Receivable Accounts Re
Accounts Receivable Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable [Abstract] | |
Schedule of accounts receivable | Accounts receivable consisted of the following: December 31, (in millions) 2021 2020 Installment payment option $ 1,284 $ 1,368 Major credit cards and customers 237 262 Trade accounts receivable 1,521 1,630 Other receivables (1) 223 96 Accounts receivable 1744 1726 Less allowance for credit losses (99) (124) Accounts receivable, net $ 1,645 1,602 (1) Includes $129 million insurance receivable as of 12/31/2021 related to the Rocky Mount fire (see note 19). |
Summary of activity in the allowance for doubtful accounts | A summary of activity in the allowance for credit losses was as follows: (in millions) Balance Additions- Deductions- Balance 2021 $ 124 49 (74) 99 2020 123 89 (88) 124 2019 112 124 (113) 123 |
Property and Equipment, Net P_2
Property and Equipment, Net Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule Property, Plant and Equipment, net | Property and equipment consisted of the following: December 31, Estimated (in millions) 2021 2020 life Land $ 116 129 N/A Buildings and improvements 1,010 1,214 8 - 20 years Furniture and other equipment 632 790 2 - 8 years Broadcast equipment 167 169 2 - 5 years Computer equipment 179 211 2 - 3 years Transponders and terrestrial transmitter (note 9) 172 174 2 - 10 years Projects in progress 44 35 N/A Property and equipment 2,320 2,722 Less: accumulated depreciation (1,354) (1,544) Property and equipment, net $ 966 1,178 |
Television Distribution Right_2
Television Distribution Rights, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Television Distribution Rights [Abstract] | |
Schedule of television distribution rights | Television Distribution Rights, Net Television distribution rights consisted of the following: December 31, (in millions) 2021 2020 Television distribution rights $ 818 814 Less accumulated amortization (673) (751) Television distribution rights, net $ 145 63 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 1.8 years as of December 31, 2021. Amortization expense for television distribution rights was $107 million for the year ended December 31, 2021 and $133 million for each of the years ended December 31, 2020 and 2019. As of December 31, 2021, related amortization expense for each of the next five years ending December 31 was as follows (in millions): 2022 $ 112 2023 28 2024 4 2025 1 2026 — 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 $349 million for each the years ended December 31, 2021 and 2020 and $350 million for the year ended December 31, 2019, which is included as part of operating expenses in the consolidated statements of operations. |
Schedule of expected amortization expense | As of December 31, 2021, related amortization expense for each of the next five years ending December 31 was as follows (in millions): 2022 $ 112 2023 28 2024 4 2025 1 2026 — |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill [Line Items] | |
Schedule of acquired intangible assets by class | Other intangible assets consisted of the following: December 31, 2021 2020 Weighted average remaining life (years) (in millions) Gross Accumulated Other intangible assets, net Gross Accumulated Other intangible assets, net Purchased and internally developed software $ 945 (659) 286 952 (663) 289 2.4 Affiliate and customer relationships 2,832 (2,598) 234 2,845 (2,564) 281 5.0 Debt origination fees 9 — 9 10 (4) 6 4.8 Tradenames (indefinite life) 2,878 — 2,878 2,878 — 2,878 N/A $ 6,664 (3,257) 3,407 6,685 (3,231) 3,454 |
Schedule of finite-lived intangible assets future amortization expense | As of December 31, 2021, the related amortization and interest expense for each of the next five years ending December 31 was as follows (in millions): 2022 $ 179 2023 149 2024 104 2025 49 2026 48 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following: December 31, (in millions) 2021 2020 Accounts payable non-trade $ 364 408 Allowance for sales returns 242 267 Accrued compensation and benefits 151 214 Income taxes 132 98 Other 290 315 $ 1,179 1,302 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Long-term debt and finance lease obligations consisted of the following: December 31, (in millions) 2021 2020 3.5% Exchangeable Senior Debentures due 2031 $ — 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 Senior secured credit facility (1) 481 — Finance lease obligations (note 9) 157 168 Less debt issuance costs, net (43) (50) Total debt and finance lease obligations 5,043 4,959 Less current portion (20) (410) Long-term portion of debt and finance lease obligations $ 5,023 4,549 (1) Includes $151 million of Zulily's outstanding borrowings as of December 31, 2021. |
Schedule of Maturities of Long-term Debt | The annual principal maturities of QVC's debt, based on stated maturity dates, for each of the next five years are as follows: (in millions) Debt (1) 2022 $ — 2023 750 2024 600 2025 600 2026 481 (1) Amounts exclude finance lease obligations (see Note 9) and the issue discounts on the 4.375%, 4.45%, 4.85%, 5.45% and 5.95% Senior Secured Notes. |
Leases and Transponder Servic_2
Leases and Transponder Service Agreements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases and Transponder Service Agreements [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease cost for the years ended December 31, 2021, 2020 and 2019, were as follows: Year ended December 31, (in millions) 2021 2020 2019 Finance lease cost Depreciation of leased assets $ 19 19 20 Interest on lease liabilities 8 8 9 Total finance lease cost 27 27 29 Operating lease cost 42 39 32 Total lease cost $ 69 66 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, 2021 Weighted-average remaining lease term (years): Finance leases 7.7 Operating leases 10.5 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: December 31, (in millions) 2021 2020 Operating Leases: Operating lease right-of-use assets $ 201 221 Accrued liabilities $ 26 25 Other long-term liabilities 177 195 Total operating lease liabilities $ 203 220 Finance Leases: Property and equipment $ 277 278 Accumulated depreciation (151) (141) Property and equipment, net $ 126 137 Current portion of debt and finance lease obligations $ 20 18 Long-term portion of debt and finance lease obligations 137 150 Total finance lease liabilities $ 157 168 |
Leases, Supplemental Cash Flow Information [Table Text Block] | Supplemental cash flow information related to leases for the years ended December 31, 2021, 2020 and 2019 was as follows: Year ended December 31, (in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 38 44 35 Operating cash flows for finance leases 8 8 9 Financing cash flows for finance leases 18 18 22 Right-of-use assets obtained in exchange for lease obligations: Operating leases 11 31 151 Finance leases $ 11 — 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, 2021 consisted of the following: (in millions) Finance leases Operating leases Total leases 2022 $ 27 37 64 2023 27 29 56 2024 26 25 51 2025 23 21 44 2026 22 20 42 Thereafter 67 148 215 Total lease payments 192 280 472 Less: imputed interest (35) (77) (112) Total lease liabilities $ 157 203 360 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 (in millions) QxH QVC-International Total Home $ 3,278 1,237 4,515 Beauty 1,223 723 1,946 Apparel 1,291 492 1,783 Accessories 980 265 1,245 Electronics 964 119 1,083 Jewelry 359 228 587 Other revenue 182 13 195 Total net revenue $ 8,277 3,077 11,354 Year ended December 31, 2020 (in millions) QxH QVC-International Total Home $ 3,529 1,199 4,728 Beauty 1,261 724 1,985 Apparel 1,170 437 1,607 Accessories 944 260 1,204 Electronics 1,069 122 1,191 Jewelry 363 216 579 Other revenue 169 9 178 Total net revenue $ 8,505 2,967 11,472 Year ended December 31, 2019 (in millions) QxH QVC-International Total Home $ 3,053 1,010 4,063 Beauty 1,304 659 1,963 Apparel 1,291 439 1,730 Accessories 919 262 1,181 Electronics 1,142 104 1,246 Jewelry 402 221 623 Other revenue 166 14 180 Total net revenue $ 8,277 2,709 10,986 |
Revenue Valuation Allowance and
Revenue Valuation Allowance and Reserves (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 was as follows: (in millions) Balance Additions- Deductions Balance 2021 $ 267 1,922 (1,947) 242 2020 238 1,976 (1,947) 267 2019 242 2,138 (2,142) 238 |
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, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock options activity | A summary of the activity of the Qurate Incentive Plans with respect to the QRTEA Options granted to QVC employees and officers as of and during the year ended December 31, 2021 is presented below: Options Weighted Aggregate Weighted average remaining Outstanding as of January 1, 2021 24,546,114 $ 10.98 $ 60,652 3.9 Granted 1,949,619 11.45 Exercised (2,201,183) 5.64 Forfeited (2,986,048) 12.87 Special Cash Dividend anti-dilution adjustment 3,625,561 9.64 Outstanding as of December 31, 2021 24,934,063 9.65 31,372 3.3 Exercisable as of December 31, 2021 17,023,527 $ 11.56 7,811 2.3 |
Schedule of stock options valuation assumptions | During the years ended December 31, 2021, 2020 and 2019, 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: 2021 2020 2019 Expected volatility 57.0 % 46.8 % 30.1 % Expected term (years) 5.8 5.7 5.7 Risk free interest rate 1.0 % 0.7 % 2.2 % Expected dividend yield — — — |
Schedule of restricted stock activity | A summary of the activity of the Qurate Incentive Plans with respect to the QRTEA RSUs granted to QVC employees and officers as of and during the year ended December 31, 2021 is presented below: Restricted shares Weighted average Outstanding as of January 1, 2021 6,734,989 $ 7.04 Granted 5,095,154 11.58 Vested (3,157,337) 8.11 Forfeited (575,342) 8.70 Outstanding as of December 31, 2021 8,097,464 9.36 |
Income Taxes Income Tax (Tables
Income Taxes Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense consisted of the following: Years ended December 31, (in millions) 2021 2020 2019 Current: U.S. federal $ 329 187 141 State and local 44 55 37 Foreign jurisdictions 116 104 93 Total 489 346 271 Deferred: U.S. federal (66) (15) (11) State and local (13) 21 3 Foreign jurisdictions (2) (15) (1) Total (81) (9) (9) Total income tax expense $ 408 337 262 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Pre-tax income was as follows: Years ended December 31, (in millions) 2021 2020 2019 QxH $ 883 931 843 QVC-International 376 316 236 Consolidated QVC $ 1,259 1,247 1,079 |
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 2021, 2020 and 2019, as a result of the following: Years ended December 31, 2021 2020 2019 Provision at statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 1.9 4.2 2.9 Foreign taxes 1.4 2.0 1.0 Write-off of investment and notes of foreign subsidiary — — (3.1) Valuation allowance 1.0 0.4 3.2 Tax on foreign earnings, net of federal tax benefits 5.0 (0.4) (0.2) Other permanent differences 2.3 0.4 0.4 Corporate restructuring — 0.9 — Impact of foreign currency tax regulation — — (0.7) Other, net (0.2) (1.5) (0.2) Total income tax expense 32.4 % 27.0 % 24.3 % |
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) 2021 2020 Deferred tax assets: Accounts receivable, principally due to the allowance for credit losses and related reserves for the uncollectible accounts $ 21 28 Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 32 37 Allowance for sales returns 30 28 Deferred revenue 99 5 Deferred compensation 10 32 Unrecognized federal and state tax benefits 15 14 Net operating loss and other carryforwards 116 116 Foreign tax credits carryforward 54 48 Lease obligations 63 69 Cumulative translation of foreign currencies 8 7 Accrued liabilities 10 8 Other 19 14 Subtotal 477 406 Valuation allowance (171) (166) Total deferred tax assets 306 240 Deferred tax liabilities: Depreciation and amortization (838) (853) Lease assets (57) (64) Other receivable (11) — Total deferred tax liabilities (906) (917) Net deferred tax liability $ (600) (677) |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | A reconciliation of the 2020 and 2021 beginning and ending amount of the liability for unrecognized tax benefits is as follows: (in millions) Balance at January 1, 2020 $ 60 Increases related to prior year tax positions 5 Decreases related to prior year tax positions (6) Decreases related to settlements with taxing authorities — Increases related to current year tax positions 8 Balance at December 31, 2020 67 Increases related to prior year tax positions 1 Decreases related to prior year tax positions (5) Decreases related to settlements with taxing authorities — Increases related to current year tax positions 10 Balance at December 31, 2021 $ 73 |
Assets and Liabilities Measur_2
Assets and Liabilities Measured at Fair Value (Tables) | 12 Months Ended |
Dec. 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 December 31, 2021 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 124 124 — — Current liabilities: Interest rate swap arrangements (note 8) 1 — 1 — Long-term liabilities: Debt (note 8) 5,076 745 4,331 — Fair value measurements at December 31, 2020 using (in millions) Total Quoted prices Significant Significant Current assets: Cash equivalents $ 240 240 — — Financial instrument asset (note 8) 23 — 23 — Current liabilities: Debt (note 8) 393 — 393 — Long-term liabilities: Debt (note 8) 4,705 743 3,962 — Interest rate swap arrangements (note 8) 3 — 3 — |
Information about QVC's Opera_3
Information about QVC's Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Adjusted OIBDA by Segment | Years ended December 31, 2021 2020 2019 (in millions) Net Adjusted Net Adjusted Net Adjusted QxH $ 8,277 1,439 8,505 1,547 8,277 1,536 QVC-International 3,077 562 2,967 510 2,709 446 Consolidated QVC $ 11,354 2,001 11,472 2,057 10,986 1,982 |
Schedule of Depreciation and Amortization by Segment | Years ended December 31, 2021 2020 2019 (in millions) Depreciation Amortization Depreciation Amortization Depreciation Amortization QxH $ 105 256 116 270 113 269 QVC-International 54 14 55 12 73 13 Consolidated QVC $ 159 270 171 282 186 282 |
Schedule of Capital Expenditures and Total Assets by Segment | Years ended December 31, 2021 2020 (in millions) Total Capital Total Capital QxH $ 13,962 169 14,103 182 QVC-International 2,226 41 2,455 36 Consolidated QVC $ 16,188 210 16,558 218 |
Property and equipment, net by Segment | Property and equipment, net of accumulated depreciation, by segment were as follows: December 31, (in millions) 2021 2020 QxH $ 610 771 QVC-International 356 407 Consolidated QVC $ 966 1,178 |
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) 2021 2020 2019 Adjusted OIBDA $ 2,001 2,057 1,982 Fire related costs, net (21) — — Impairment loss — — (147) Transaction related costs — — (1) Stock-based compensation (44) (37) (39) Depreciation and amortization (429) (453) (468) Operating Income 1,507 1,567 1,327 Equity in losses of investee (2) (30) — Gains (losses) on financial instruments 8 3 (5) Interest expense, net (249) (257) (240) Foreign currency (loss) gain (9) 6 (3) Loss on extinguishment of debt (7) (42) — Other Income 11 — — Income before income taxes $ 1,259 1,247 1,079 |
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) 2021 2020 2019 United States $ 8,277 8,505 8,277 Japan 1,167 1,132 1,028 Germany 1,027 978 890 United Kingdom 722 696 640 Other countries 161 161 151 Consolidated QVC $ 11,354 11,472 10,986 |
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) 2021 2020 United States $ 610 771 Germany 133 150 Japan 123 149 United Kingdom 71 75 Other countries 29 33 Consolidated QVC $ 966 1,178 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 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 Recognition of previously unrealized losses on debt, net Foreign currency translation adjustments AOCL Balance as of January 1, 2019 $ — — (144) (144) Other comprehensive income attributable to QVC, Inc. stockholder — — — — Balance as of December 31, 2019 — — (144) (144) Other comprehensive income attributable to QVC, Inc. stockholder — — 111 111 Common control transaction with Qurate Retail 16 — — 16 Balance as of December 31, 2020 16 — (33) (17) Other comprehensive income attributable to QVC, Inc. stockholder (19) 3 (113) (129) Balance as of December 31, 2021 $ (3) 3 (146) (146) |
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, 2021: Foreign currency translation adjustments $ (124) (4) (128) Recognition of previously unrealized losses on debt, net 3 — 3 Comprehensive loss attributable to debt credit risk adjustments (19) — (19) Other comprehensive loss (140) (4) (144) Year ended December 31, 2020: Foreign currency translation adjustments $ 115 3 118 Other comprehensive income 115 3 118 Year ended December 31, 2019: Foreign currency translation adjustments $ — 1 1 Other comprehensive income — 1 1 |
Unusual or Infrequently Occur_2
Unusual or Infrequently Occurring Items (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Unusual or Infrequent Items, or Both | Certain incremental costs incurred to date related to the fire and related insurance recovery for the year ended December 31, 2021 are as follows: Year ended December 31 ($ in millions) 2021 Loss on inventory $ 134 Loss on fixed assets 87 Other fire related costs (1) 29 Total 250 Less: Insurance Recoveries received (100) Less: Expected insurance recoveries (129) Fire related costs, net $ 21 (1) Amount includes $21 million of costs that will not be reimbursed by QVC's insurance policies primarily related to personnel costs. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Payments of Ordinary Dividends, Noncontrolling Interest | $ (60) | $ (62) | $ (40) |
Severance Costs | $ 20 | ||
QVC-Japan [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Investment owned, percent of net assets | 60.00% | ||
QVC-Japan [Member] | Mitsui [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 40.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 30, 2020 | |
Other Significant Noncash Transactions [Line Items] | |||
Notes Receivable, Related Parties, Noncurrent | $ 1,740 | $ 1,825 | $ 1,800 |
Prepaid expenses and other current assets | 180 | 293 | |
Debt, Current | $ (20) | (410) | |
Other Significant Noncash Transaction, Value of Consideration Received | $ 1,514 | ||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 0.48% | ||
Debt instrument interest rate stated percentage | 3.50% | ||
QRTEA [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Notes Receivable, Related Parties, Noncurrent | 1,825 | ||
Prepaid expenses and other current assets | 91 | ||
Debt, Current | (397) | ||
Accrued Liabilities | $ (5) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (16) | ||
Other Significant Noncash Transaction, Value of Consideration Received | $ 1,498 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Other Details (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Cash Equivalents, at Carrying Value | $ 124 | $ 240 | |
Advertising Expense | 288 | 208 | $ 153 |
Cash and Cash Equivalents [Line Items] | |||
Cash Equivalents, at Carrying Value | 124 | $ 240 | |
Obligation with Joint and Several Liability Arrangement, Corresponding Entry, Amount | $ 151 | ||
CNR Home Shopping Co., Ltd. | |||
Accounting Policies [Abstract] | |||
Equity method investment, ownership percentage | 49.00% | ||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 49.00% | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 10 | ||
Cash and Cash Equivalents [Line Items] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 10 |
Accounts Receivable Accounts _2
Accounts Receivable Accounts Receivable (Accounts Receivable) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)installment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable, gross | $ 1,744 | $ 1,726 | |
Less allowance for credit losses | (99) | (124) | |
Accounts receivable, net | 1,645 | 1,602 | |
Installment sales plan | |||
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable, gross | 1,284 | 1,368 | |
Credit Card Receivable [Member] | |||
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable, gross | 237 | 262 | |
Trade Accounts Receivable | |||
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts Receivable, before Allowance for Credit Loss | 1,521 | 1,630 | |
Other receivables [Member] | |||
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable, gross | 223 | 96 | |
SG&A | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance income from company branded credit card issued by financial institution | $ 144 | $ 140 | $ 124 |
Minimum | Installment sales plan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of installments plan permits for customers | installment | 2 |
Accounts Receivable Accounts _3
Accounts Receivable Accounts Receivable (Activity in the Allowance for Doubtful Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance beginning of year | $ 124 | $ 123 | $ 112 |
Additions- charged to expense | 49 | 89 | 124 |
Deductions- write-offs | (74) | (88) | (113) |
Balance end of year | $ 99 | $ 124 | $ 123 |
Property and Equipment, Net P_3
Property and Equipment, Net Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 2,320 | $ 2,722 |
Less: accumulated depreciation | (1,354) | (1,544) |
Property and equipment, net | 966 | 1,178 |
Property and equipment, disposals | 418 | 46 |
Land | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 116 | 129 |
Buildings and improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 1,010 | 1,214 |
Furniture and Fixtures | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 632 | 790 |
Broadcast equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 167 | 169 |
Computer equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 179 | 211 |
Transponders [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 172 | 174 |
Projects in progress | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 44 | $ 35 |
Minimum | Buildings and improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Minimum | Furniture and Fixtures | ||
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 [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Maximum | Buildings and improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Maximum | Furniture and Fixtures | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Maximum | Broadcast equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum | Computer equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum | Transponders [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Useful Life | 10 years |
Television Distribution Right_3
Television Distribution Rights, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 1 year 9 months 18 days | ||
Percentage of Net Sales | 5.00% | ||
Television distribution rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Television distribution rights | $ 818 | $ 814 | |
Less accumulated amortization | (673) | (751) | |
Television distribution rights, net | 145 | 63 | |
Amortization | 133 | 133 | $ 107 |
Commission Expense | $ 349 | $ 349 | $ 350 |
Television Distribution Right_4
Television Distribution Rights, Net (Future Amortization Expense) (Details) - Television distribution rights - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Commission Expense | $ 349 | $ 349 | $ 350 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2022 | 112 | ||
2022 | 28 | ||
2023 | 4 | ||
2024 | 1 | ||
2025 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Goodwill (note 6) | $ 5,968 | $ 6,034 | $ 5,971 |
Goodwill, Foreign Currency Translation Gain (Loss) | (66) | 63 | |
QxH [Member] | |||
Goodwill [Line Items] | |||
Goodwill (note 6) | 5,112 | 5,112 | 5,112 |
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
QVC-International | |||
Goodwill [Line Items] | |||
Goodwill (note 6) | 856 | 922 | $ 859 |
Goodwill, Foreign Currency Translation Gain (Loss) | $ (66) | $ 63 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net (Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Indefinite-Lived Trade Names | $ 2,878 | $ 2,878 | |
Intangible Assets, Gross (Excluding Goodwill) | 6,664 | 6,685 | |
Other Intangible Assets (Excluding Goodwill), Accumulated Amortization | 3,257 | 3,231 | |
Other intangible assets, net (note 6) | 3,407 | 3,454 | |
Finite-Lived Intangible Assets, Period Increase (Decrease) | (116) | (48) | |
Amortization | 270 | 282 | $ 282 |
Purchased and internally developed software | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Capitalized Computer Software, Gross | 945 | 952 | |
Capitalized Computer Software, Accumulated Amortization | 659 | 663 | |
Capitalized Computer Software, Net | $ 286 | 289 | |
Finite-Lived Intangible Asset, Useful Life | 2 years 4 months 24 days | ||
Customer Relationships [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Finite-Lived Customer Relationships, Gross | $ 2,832 | 2,845 | |
Finite-Lived Customer Relationships, Accumulated Amortization | 2,598 | 2,564 | |
Finite lived customer relationships, net | $ 234 | 281 | |
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Debt [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Debt Issuance Costs, Gross | $ 9 | 10 | |
Accumulated Amortization, Debt Issuance Costs | 0 | 4 | |
Debt Issuance Costs, Net | $ 9 | 6 | |
Finite-Lived Intangible Asset, Useful Life | 4 years 9 months 18 days | ||
Finite-Lived Intangible Assets [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Amortization | $ 163 | $ 149 | $ 149 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impairment [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 | $ 147 | |
Impairment of Intangible Assets (Excluding Goodwill) | 147 | |||
HSN, Inc. | ||||
Impairment [Line Items] | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 450 | $ 597 | ||
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, 2021USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2022 | $ 179 |
2022 | 149 |
2023 | 104 |
2024 | 49 |
2025 | $ 48 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities [Abstract] | ||
Accounts payable non-trade | $ 364 | $ 408 |
Allowance for sales returns | 242 | 267 |
Accrued compensation and benefits | 151 | 214 |
Accrued Income Taxes, Current | 132 | 98 |
Other Accrued Liabilities, Current | 290 | 315 |
Accrued liabilities | $ 1,179 | $ 1,302 |
Long-Term Debt (Debt) (Details)
Long-Term Debt (Debt) (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2021 | Oct. 27, 2021 | Dec. 31, 2020 | Aug. 20, 2020 | Feb. 04, 2020 | Dec. 06, 2019 | Jul. 01, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 3.50% | |||||||
Long-term portion of debt and finance lease obligations | $ 137,000,000 | $ 150,000,000 | ||||||
Less debt issuance costs, net | (43,000,000) | (50,000,000) | ||||||
Long-term Debt | 5,043,000,000 | 4,959,000,000 | ||||||
Debt, Current | (20,000,000) | (410,000,000) | ||||||
Long-term Debt, Term | 5,023,000,000 | $ 4,549,000,000 | ||||||
Fair Value of Debt Exchanged | 573,000,000 | |||||||
Fair Value of Debt Redeemed | 1,000,000 | |||||||
Derivative, Notional Amount | $ 125,000,000 | |||||||
zulily, llc | ||||||||
Debt Instrument [Line Items] | ||||||||
Obligation with Joint and Several Liability Arrangement, Amount Recognized | 151,000,000 | |||||||
Exchangeable Senior Debentures Due 2031 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 3.50% | |||||||
Debt Instrument Net Of Unamortized Discounts Premium | $ 0 | $ 393,000,000 | ||||||
4.375% Senior Secured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 4.375% | |||||||
Debt Instrument Net Of Unamortized Discounts Premium | $ 750,000,000 | 750,000,000 | ||||||
4.85% Senior Secured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 4.85% | |||||||
Debt Instrument Net Of Unamortized Discounts Premium | $ 600,000,000 | 600,000,000 | ||||||
4.45% Senior Secured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 4.45% | |||||||
Debt Instrument Net Of Unamortized Discounts Premium | $ 599,000,000 | 599,000,000 | ||||||
4.75% Senior Secured Notes [Member] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 4.75% | 4.75% | ||||||
Debt Instrument Net Of Unamortized Discounts Premium | $ 575,000,000 | 575,000,000 | ||||||
4.375% Senior Secured Notes due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 4.375% | 4.375% | ||||||
Debt Instrument Net Of Unamortized Discounts Premium | $ 500,000,000 | 500,000,000 | ||||||
5.45% Senior Secured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 5.45% | |||||||
Debt Instrument Net Of Unamortized Discounts Premium | $ 399,000,000 | 399,000,000 | ||||||
5.950% Senior Secured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 5.95% | |||||||
Debt Instrument Net Of Unamortized Discounts Premium | $ 300,000,000 | 300,000,000 | ||||||
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 | $ 225,000,000 | 225,000,000 | ||||||
6.25% Senior Secured Notes [Member] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 6.25% | 6.25% | ||||||
Debt Instrument Net Of Unamortized Discounts Premium | $ 500,000,000 | 500,000,000 | ||||||
Debt Instrument, Term | 5 years | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument Net Of Unamortized Discounts Premium | $ 481,000,000 | 0 | ||||||
Line of credit facility maximum borrowing capacity | $ 3,250,000,000 | |||||||
Revolving Credit Facility [Member] | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||
Revolving Credit Facility [Member] | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.625% | |||||||
Revolving Credit Facility [Member] | ABR Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||||||
Revolving Credit Facility [Member] | ABR Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.625% | |||||||
Capital Lease Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term portion of debt and finance lease obligations | $ 157,000,000 | $ 168,000,000 | ||||||
Standby Letters of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility maximum borrowing capacity | 450,000,000 | |||||||
Alternative Currency Borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility maximum borrowing capacity | $ 0.50 | |||||||
250 million interest rate swap [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative, Notional Amount | $ 250,000,000 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 30, 2020 | Aug. 20, 2020 | Feb. 04, 2020 | Dec. 06, 2019 | Nov. 26, 2019 | Jul. 01, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 3.50% | |||||||||
Line of credit facility remaining borrowing capacity | $ 2,750 | |||||||||
Line of credit facility interest rate at period end | 1.50% | |||||||||
Loss on extinguishment of debt | $ 7 | $ 42 | $ 0 | |||||||
Debt, Current | (20) | (410) | ||||||||
Derivative, Notional Amount | $ 125 | |||||||||
Derivative, Fair Value, Net | 1 | |||||||||
Long-Term Debt, Maturity, Year One | 0 | |||||||||
Long-Term Debt, Maturity, Year Two | 750 | |||||||||
Long-Term Debt, Maturity, Year Three | 600 | |||||||||
Long-Term Debt, Maturity, Year Four | 600 | |||||||||
Long-Term Debt, Maturity, Year Five | $ 481 | |||||||||
Derivative, Fixed Interest Rate | 1.05% | |||||||||
Debt weighted average interest rate | 4.70% | |||||||||
Letters of Credit Outstanding, Amount | $ 18 | 13 | ||||||||
QRTEA [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Current | $ (397) | |||||||||
July 2019 Swap [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative, Fair Value, Net | $ 3 | |||||||||
3.125% Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 3.125% | |||||||||
5.125% Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 5.125% | |||||||||
4.375% Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 4.375% | |||||||||
4.85% Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 4.85% | |||||||||
4.45% Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 4.45% | |||||||||
5.45% Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 5.45% | |||||||||
5.950% Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 5.95% | |||||||||
6.375% Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 6.375% | |||||||||
6.25% Senior Secured Notes [Member] [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 6.25% | 6.25% | ||||||||
Debt Instrument, Face Amount | $ 65 | $ 435 | ||||||||
Debt Instrument, Term | 5 years | |||||||||
Long-term Debt, Gross | $ 500 | |||||||||
250 million interest rate swap [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative, Notional Amount | $ 250 | |||||||||
4.75% Senior Secured Notes [Member] [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 4.75% | 4.75% | ||||||||
Debt Instrument, Face Amount | $ 575 | |||||||||
4.375% Senior Secured Notes due 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 4.375% | 4.375% | ||||||||
Debt Instrument, Face Amount | $ 500 | |||||||||
Exchangeable Senior Debentures Due 2031 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 3.50% |
Leases and Transponder Servic_3
Leases and Transponder Service Agreements (Details) ft² in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)ft² | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Finance Lease, Right-of-Use Asset, Amortization | $ 19 | $ 19 | $ 20 |
Finance Lease, Interest Expense | 8 | 8 | 9 |
Finance Lease, Total Cost | 27 | 27 | 29 |
Total Lease Cost | 69 | 66 | 61 |
Operating leases expense | $ 42 | 39 | 32 |
Operating leases | |||
Finance Lease, Weighted Average Remaining Lease Term | 7 years 8 months 12 days | ||
Operating Lease, Weighted Average Remaining Lease Term | 10 years 6 months | ||
Finance Lease, Weighted Average Discount Rate, Percent | 5.20% | ||
Operating Lease, Weighted Average Discount Rate, Percent | 6.00% | ||
Operating Lease, Right-of-Use Asset | $ 201 | 221 | |
Accrued liabilities | $ 26 | $ 25 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities | |
Other long-term liabilities | $ 195 | ||
Operating Lease, Liability | $ 203 | 220 | |
Property and equipment, gross | 2,320 | 2,722 | |
Less: accumulated depreciation | $ (1,354) | $ (1,544) | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of debt and finance lease obligations (note 8) | Current portion of debt and finance lease obligations (note 8) | |
Current portion of debt and finance lease obligations | $ 20 | $ 18 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Lease Obligation | Long-term Debt and Lease Obligation | |
Long-term portion of debt and finance lease obligations | $ 137 | $ 150 | |
Finance Lease, Liability | 157 | 168 | |
Operating Lease, Payments | 38 | 44 | 35 |
Finance Lease, Interest Payment on Liability | 8 | 8 | 9 |
Finance Lease, Principal Payments | 18 | 18 | 22 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 11 | 31 | 151 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 11 | $ 0 | 16 |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 27 | ||
Finance Lease, Liability, Payments, Due Year Two | 27 | ||
Finance Lease, Liability, Payments, Due Year Three | 26 | ||
Finance Lease, Liability, Payments, Due Year Four | 23 | ||
Finance Lease, Liability, Payments, Due Year Five | 22 | ||
Finance Lease Liability, Payments, Thereafter | 67 | ||
Finance Lease, Liability, Payment, Due | 192 | ||
Operating Leases, Future Minimum Payments Receivable, Remainder of Fiscal Year | 37 | ||
2021 | 29 | ||
2022 | 25 | ||
2023 | 21 | ||
2024 | 20 | ||
Thereafter | 148 | ||
Imputed interest of operating leases | (77) | ||
Total Leases, Future Minimum Payments due remainder of the year | 64 | ||
Total Leases, Future Minimum Payments due in Two Years | 56 | ||
Total Leases, Future Minimum Payments due in Three Years | 51 | ||
Total Leases, Future Minimum Payments due in Four Years | 44 | ||
Total Leases, Future Minimum Payments due in Five Years | 42 | ||
Total Leases, Future Minimum Payments due Thereafter | 215 | ||
Lessee, Operating Lease, Liability, to be Paid | 280 | ||
Total Lease Payments Due | 472 | ||
Finance Lease, Liability, Undiscounted Excess Amount | (35) | ||
Imputed interest on lease liabilities | (112) | ||
Lease Liability, Total | $ 360 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities (note 7) | Accrued liabilities (note 7) | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities (note 7) | Accrued liabilities (note 7) | |
Other long-term liabilities | |||
Operating leases | |||
Other long-term liabilities | $ 177 | ||
Finance Leased Assets | |||
Operating leases | |||
Property and equipment, gross | 277 | $ 278 | |
Less: accumulated depreciation | (151) | (141) | |
Property, Plant and Equipment, Net | $ 126 | $ 137 | |
ECDC [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 15 years | ||
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 | ||
Lessee Leasing Arrangements, Operating Lease, Number of Five Year Extension Options | 2 | ||
Lessee Leasing Arrangements, Operating Lease, Number of Four Year Extension Options | 1 | ||
Lessee, Operating Lease, Final Renewal Term | 4 years | ||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 1 year | ||
Minimum | ECDC [Member] | |||
Operating leases | |||
Operating Lease, Expense | $ 10 | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 13 years | ||
Maximum | ECDC [Member] | |||
Operating leases | |||
Operating Lease, Expense | $ 14 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 11,354 | $ 11,472 | $ 10,986 |
Home [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,515 | 4,728 | 4,063 |
Beauty [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,946 | 1,985 | 1,963 |
Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,783 | 1,607 | 1,730 |
Accessories [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,245 | 1,204 | 1,181 |
Electronics [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,083 | 1,191 | 1,246 |
Jewelry [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 587 | 579 | 623 |
Other revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 195 | 178 | 180 |
QxH | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 8,277 | 8,505 | 8,277 |
QxH | Home [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,278 | 3,529 | 3,053 |
QxH | Beauty [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,223 | 1,261 | 1,304 |
QxH | Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,291 | 1,170 | 1,291 |
QxH | Accessories [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 980 | 944 | 919 |
QxH | Electronics [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 964 | 1,069 | 1,142 |
QxH | Jewelry [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 359 | 363 | 402 |
QxH | Other revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 182 | 169 | 166 |
QVC-International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,077 | 2,967 | 2,709 |
QVC-International | Home [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,237 | 1,199 | 1,010 |
QVC-International | Beauty [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 723 | 724 | 659 |
QVC-International | Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 492 | 437 | 439 |
QVC-International | Accessories [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 265 | 260 | 262 |
QVC-International | Electronics [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 119 | 122 | 104 |
QVC-International | Jewelry [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 228 | 216 | 221 |
QVC-International | Other revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 13 | $ 9 | $ 14 |
Revenue Valuation Allowances an
Revenue Valuation Allowances and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for sales returns [Line Items] | ||||
Additions- charged to earnings | $ 1,922 | $ 1,976 | $ 2,138 | |
Contract with Customer, Refund Liability | 242 | 267 | 238 | $ 242 |
Deductions | $ (1,947) | $ (1,947) | $ (2,142) |
Stock Options and Other Share_3
Stock Options and Other Share-Based Awards Stock Options and Other Share- Based Awards (Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 31,372 | $ 60,652 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 7,811 | ||
Special Dividend | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 3,625,561 | ||
Weight average exercise price | |||
Granted (in dollars per share) | $ 9.64 | ||
Liberty Incentive Plan | |||
Exercisable at December 31, 2018 | |||
Intrinsic value of options exercised during period | $ 15,000 | $ 15,000 | $ 2,000 |
QRTEA | Liberty Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of the year (in shares) | 24,546,114 | ||
Granted (in shares) | 1,949,619 | ||
Exercised (in shares) | (2,201,183) | ||
Forfeited (in shares) | (2,986,048) | ||
Outstanding at end of the year (in shares) | 24,934,063 | 24,546,114 | |
Weight average exercise price | |||
Outstanding at beginning of year (in dollars per share) | $ 10.98 | ||
Granted (in dollars per share) | 11.45 | ||
Exercised (in dollars per share) | 5.64 | ||
Forfeited (in dollars per share) | 12.87 | ||
Outstanding at ending of year (in dollars per share) | $ 9.65 | $ 10.98 | |
Additional Stock Option Disclosures | |||
Weighted average remaining life (years) | 3 years 3 months 18 days | 3 years 10 months 24 days | |
Exercisable at December 31, 2018 | |||
Options (in shares) | 17,023,527 | ||
Weighted average exercise price (in dollars per share) | $ 11.56 | ||
Weighted average remaining life (years) | 2 years 3 months 18 days | ||
Weighted average grant date fair value of options granted during period | $ 5.70 | $ 1.97 | $ 4.08 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Black- Scholes option pricing model valuation assumptions | |||
Expected volatility | 57.00% | 46.80% | 30.10% |
Expected term (years) | 5 years 9 months 18 days | 5 years 8 months 12 days | 5 years 8 months 12 days |
Risk free interest rate | 1.00% | 0.70% | 2.20% |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
QRTEA | |||
Weighted average grant fair value | |||
Outstanding at beginning of the year (in dollars per share) | $ 7.04 | ||
Granted (in dollars per share) | 11.58 | $ 4.51 | $ 16.83 |
Vested (in dollars per share) | 8.11 | ||
Forfeited (in dollars per share) | 8.70 | ||
Outstanding at end of the year (in dollars per share) | $ 9.36 | $ 7.04 | |
QRTEA [Member] | |||
Restricted shares | |||
Outstanding at beginning of the year (in shares) | 6,734,989 | ||
Granted (in shares) | 5,095,154 | ||
Vested | (3,157,337) | ||
Forfeited (in shares) | (575,342) | ||
Outstanding at end of the year (in shares) | 8,097,464 | 6,734,989 |
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, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 44 | $ 37 | $ 39 |
Special Dividend | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 3 | ||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 4 | ||
Unrecognized compensation cost, period for recognition | 2 years 2 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 117 | ||
Liberty Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to options | $ 15 | ||
Unrecognized compensation cost, period for recognition | 2 years 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 38 | 7 | 16 |
Liberty Incentive Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 9 | 17 | 22 |
Liberty Incentive Plan | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 32 | $ 16 | $ 17 |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 53 | ||
Unrecognized compensation cost, period for recognition | 2 years 8 months 12 days | ||
Liberty Incentive Plan | QRTEA | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 11.58 | $ 4.51 | $ 16.83 |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
U.S. federal | $ 329 | $ 187 | $ 141 |
State and local | 44 | 55 | 37 |
Foreign jurisdictions | 116 | 104 | 93 |
Total | 489 | 346 | 271 |
Deferred: | |||
U.S. federal | (66) | (15) | (11) |
State and local | (13) | 21 | 3 |
Foreign jurisdictions | (2) | (15) | (1) |
Total | (81) | (9) | (9) |
Total income tax expense | $ 408 | $ 337 | $ 262 |
Income Taxes Income Taxes (Pre-
Income Taxes Income Taxes (Pre-tax Income, Domestic and Foreign) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Income before income taxes | $ 1,259 | $ 1,247 | $ 1,079 |
Income Tax Expense (Benefit) | 408 | 337 | 262 |
Other Restructuring [Member] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Income Tax Expense (Benefit) | 11 | ||
QxH | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
U.S. pre-tax income | 883 | 931 | 843 |
QVC-International | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Foreign pre- tax income | $ 376 | $ 316 | $ 236 |
Income Taxes Income Taxes (Effe
Income Taxes Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | |||
Provision at statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 1.90% | 4.20% | 2.90% |
Foreign taxes | 1.40% | 2.00% | 1.00% |
Write-off of investment and notes of foreign subsidiary | 0.00% | 0.00% | (3.10%) |
Valuation allowance | 1.00% | 0.40% | 3.20% |
Tax on foreign earnings, net of federal tax benefits | 5.00% | (0.40%) | (0.20%) |
Other permanent differences | 2.30% | 0.40% | 0.40% |
Corporate restructuring | 0.00% | 0.90% | 0.00% |
Impact of foreign currency tax regulation | 0.00% | 0.00% | (0.70%) |
Other, net | (0.20%) | (1.50%) | (0.20%) |
Effective Income Tax Rate Reconciliation, Percent, Total | 32.40% | 27.00% | 24.30% |
Income Taxes Income Taxes (Defe
Income Taxes Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Accounts receivable, principally due to the allowance for credit losses and related reserves for the uncollectible accounts | $ 21 | $ 28 |
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 | 32 | 37 |
Allowance for sales returns | 30 | 28 |
Deferred revenue | 99 | 5 |
Deferred compensation | 10 | 32 |
Unrecognized federal and state tax benefits | 15 | 14 |
Operating Loss Carryforwards | 116 | 116 |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 54 | 48 |
Lease obligations | 63 | 69 |
Cumulative translation of foreign currencies | 8 | 7 |
Accrued liabilities | 10 | 8 |
Other | 19 | 14 |
Subtotal | 477 | 406 |
Valuation allowance | (171) | (166) |
Total deferred tax assets | 306 | 240 |
Deferred tax liabilities: | ||
Depreciation and amortization | (838) | (853) |
Deferred Tax Liabilities, Leasing Arrangements | (57) | (64) |
Deferred tax liability, Investment in Subsidiaries | (11) | 0 |
Deferred Tax Liabilities, Gross | 906 | 917 |
Net deferred tax liability | $ (600) | $ (677) |
Income Taxes Income Taxes (Reco
Income Taxes Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at December 31, 2020 | $ 67 | $ 60 |
Increases related to prior year tax positions | 1 | 5 |
Decreases related to prior year tax positions | (5) | (6) |
Decreases related to settlements with taxing authorities | 0 | 0 |
Increases related to current year tax positions | 10 | 8 |
Balance at December 31, 2021 | $ 73 | $ 67 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Gross | $ 37 | $ 34 | |
Deferred Tax Liabilities, Domestic Jurisdiction | 637 | 711 | |
Deferred Tax Liabilities, Gross | $ 906 | $ 917 | |
Provision at statutory rate | 21.00% | 21.00% | 21.00% |
Unrecognized tax benefits that would impact effective tax rate | $ 58 | $ 53 | |
Federal tax effect on unrecognized tax benefits | 15 | 14 | |
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 2 | ||
Qurate | Tax Agreement | |||
Income Tax Contingency [Line Items] | |||
Cash dividends paid to parent company for taxes | 11 | ||
Capital contribution paid to parent company for taxes | 73 | ||
Due from Affiliates | $ 47 | ||
Current tax payments due to related parties | $ 85 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 18 | $ 13 | ||
Notes Receivable, Related Parties, Noncurrent | $ 1,740 | 1,825 | $ 1,800 | |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 0.48% | |||
Repayment of Notes Receivable from Related Parties | $ 85 | 0 | $ 0 | |
QVC to Zulily allocated expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 8 | 8 | 7 | |
Zulily to QVC allocated expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 8 | 11 | 9 | |
QVC to CBI Allocated Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 22 | 23 | 28 | |
CBI to QVC allocated expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 1 | $ 1 | 1 | |
zulily, llc | ||||
Related Party Transaction [Line Items] | ||||
Obligation with Joint and Several Liability Arrangement, Amount Recognized | 151 | |||
Cornerstone Brands Inc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repayments of Related Party Debt | $ 29 | |||
zulily, llc | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Promissory Note | 100 | |||
Letters of Credit Outstanding, Amount | 9 | |||
Liberty | ||||
Related Party Transaction [Line Items] | ||||
Interest Income, Related Party | 9 | |||
Repayment of Notes Receivable from Related Parties | $ 85 |
Assets and Liabilities Measur_3
Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash equivalents | $ 124 | $ 240 |
Credit Risk Derivative Assets, at Fair Value | 23 | |
Derivative Liability, Current | 1 | |
Short-term Debt, Fair Value | 393 | |
Debt (note 8) | ||
Long-term Debt, Fair Value | 5,076 | 4,705 |
Derivative Liability, Noncurrent | 3 | |
Level 1 | ||
Current assets: | ||
Cash equivalents | 124 | 240 |
Debt (note 8) | ||
Long-term Debt, Fair Value | 745 | 743 |
Level 2 | ||
Current assets: | ||
Credit Risk Derivative Assets, at Fair Value | 23 | |
Derivative Liability, Current | 1 | |
Short-term Debt, Fair Value | 393 | |
Debt (note 8) | ||
Long-term Debt, Fair Value | $ 4,331 | 3,962 |
Derivative Liability, Noncurrent | $ 3 |
Information about QVC's Opera_4
Information about QVC's Operating Segments (Revenue and Adjusted OIBDA by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Adjusted OIBDA | $ 2,001 | $ 2,057 | $ 1,982 |
Revenue from Contract with Customer, Excluding Assessed Tax | 11,354 | 11,472 | 10,986 |
QVC-International | |||
Segment Reporting Information [Line Items] | |||
Adjusted OIBDA | 562 | 510 | 446 |
Revenue from Contract with Customer, Excluding Assessed Tax | 3,077 | 2,967 | 2,709 |
QxH [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted OIBDA | 1,439 | 1,547 | 1,536 |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 8,277 | $ 8,505 | $ 8,277 |
Information about QVC's Opera_5
Information about QVC's Operating Segments (Depreciation/Amortization by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Depreciation | $ 159 | $ 171 | $ 186 |
Amortization | 270 | 282 | 282 |
QVC-International | |||
Segment Reporting Information [Line Items] | |||
Depreciation | 54 | 55 | 73 |
Amortization | 14 | 12 | 13 |
QxH [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation | 105 | 116 | 113 |
Amortization | $ 256 | $ 270 | $ 269 |
Information about QVC's Opera_6
Information about QVC's Operating Segments (Total Assets and CAPEX by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 16,188 | $ 16,558 | |
Payments to Acquire Productive Assets | 210 | 218 | $ 291 |
QVC-International | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,226 | 2,455 | |
Payments to Acquire Productive Assets | 41 | 36 | |
QxH [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 13,962 | 14,103 | |
Payments to Acquire Productive Assets | $ 169 | $ 182 |
Information about QVC's Opera_7
Information about QVC's Operating Segments (Long-lived Assets by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 16,188 | $ 16,558 |
Property, Plant and Equipment, Net | 966 | 1,178 |
QVC-International | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,226 | 2,455 |
Property, Plant and Equipment, Net | $ 356 | $ 407 |
Information about QVC's Opera_8
Information about QVC's Operating Segments (Reconciliation of Adjusted OIBDA to Income before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | |||
Adjusted OIBDA | $ 2,001 | $ 2,057 | $ 1,982 |
Fire related costs, net | 21 | 0 | 0 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | (147) |
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | 0 | 0 | (1) |
Stock-based compensation | (44) | (37) | (39) |
Depreciation and amortization | (429) | (453) | (468) |
Operating income | 1,507 | 1,567 | 1,327 |
Equity in losses of investee | (2) | (30) | 0 |
Gains (losses) on financial instruments | 8 | 3 | (5) |
Interest expense, net | (249) | (257) | (240) |
Foreign currency (loss) gain | (9) | 6 | (3) |
Loss on extinguishment of debt | (7) | (42) | 0 |
Other Income | 11 | 0 | 0 |
Income before income taxes | $ 1,259 | $ 1,247 | $ 1,079 |
Information about QVC's Opera_9
Information about QVC's Operating Segments (Property and Equipment By Geographical Area) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property and equipment [Line Items] | ||
Property, Plant and Equipment, Net | $ 966 | $ 1,178 |
Germany | ||
Property and equipment [Line Items] | ||
Property, Plant and Equipment, Net | 133 | 150 |
Japan | ||
Property and equipment [Line Items] | ||
Property, Plant and Equipment, Net | 123 | 149 |
United Kingdom | ||
Property and equipment [Line Items] | ||
Property, Plant and Equipment, Net | 71 | 75 |
Other countries | ||
Property and equipment [Line Items] | ||
Property, Plant and Equipment, Net | 29 | 33 |
UNITED STATES | ||
Property and equipment [Line Items] | ||
Property, Plant and Equipment, Net | 610 | 771 |
QxH [Member] | ||
Property and equipment [Line Items] | ||
Property, Plant and Equipment, Net | $ 610 | $ 771 |
Information about QVC's Oper_10
Information about QVC's Operating Segments Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
QVC-International | |||
Segment Reporting Information [Line Items] | |||
Segment Cost Allocation | $ 37 | $ 33 | $ 27 |
Other Comprehensive Income (Acc
Other Comprehensive Income (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 7,765 | $ 8,135 | $ 6,804 | $ 6,829 |
Other Comprehensive Income (Loss), Net of Tax | (144) | 118 | 1 | |
Comprehensive loss attributable to debt credit risk adjustments | (19) | 0 | 0 | |
Recognition Of Previously Unrealized Gains Losses On Debt | 3 | 0 | 0 | |
Other Significant Noncash Transaction, Value of Consideration Received | 1,514 | |||
Accumulated Other Comprehensive Income Loss Attributable To Debt Credit Risk Adjustment Member | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (3) | 16 | ||
Comprehensive loss attributable to debt credit risk adjustments | (19) | |||
Other Significant Noncash Transaction, Value of Consideration Received | 16 | |||
Recognition of previously unrealized losses on debt | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3 | |||
Recognition Of Previously Unrealized Gains Losses On Debt | 3 | |||
Accumulated Foreign Currency Adjustment Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (146) | (33) | (144) | (144) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | (113) | 111 | ||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (146) | (17) | $ (144) | $ (144) |
Other Comprehensive Income (Loss), Net of Tax | $ (129) | 111 | ||
Other Significant Noncash Transaction, Value of Consideration Received | $ 16 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Cash contributions to defined contribution plans | $ 25 | $ 25 | $ 21 |
Unusual or Infrequently Occur_3
Unusual or Infrequently Occurring Items (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Unusual or Infrequent Item, or Both [Line Items] | |||
Inventories | $ 1,355 | $ 1,119 | |
Fire related costs, net | 21 | $ 0 | $ 0 |
QVC Rocky Mount | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Estimated Insurance Recoveries | 229 | ||
Unusual or Infrequent Item, or Both, Insurance Proceeds | 100 | ||
Insurance Settlements Receivable | 129 | ||
Inventories | 117 | ||
Inventory Write-down | 134 | ||
Loss on fixed assets | 87 | ||
Other fire related costs (1) | 29 | ||
Unusual or Infrequent Item, or Both, Loss, Gross | 250 | ||
Fire related costs, net | $ 21 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 2 Months Ended |
Feb. 25, 2022USD ($) | |
Qurate | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Dividends declared to parent company | $ 52 |
Uncategorized Items - qvc-20211
Label | Element | Value |
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | qvc_CashCashEquivalentsandRestrictedCashBeginningofPeriod | $ 550,000,000 |