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Guarantor/Non-Guarantor Subsidiary Financial Information (Tables) | 3 Months Ended
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Mar. 31, 2014
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] |
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Year | Condensed consolidating balance sheets
March 31, 2014 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Assets
Current assets: |  |  |  |  |
Cash and cash equivalents | $ | 47 |  | 218 |  | 293 |  | — |  | 558 |
Restricted cash | 11 |  | — |  | 3 |  | — |  | 14 |
Accounts receivable, net | 579 |  | — |  | 278 |  | — |  | 857 |
Inventories | 737 |  | — |  | 280 |  | — |  | 1,017 |
Deferred income taxes | 146 |  | — |  | 17 |  | — |  | 163 |
Prepaid expenses | 27 |  | — |  | 27 |  | — |  | 54 |
Total current assets | 1,547 |  | 218 |  | 898 |  | — |  | 2,663 |
Property and equipment, net | 259 |  | 66 |  | 771 |  | — |  | 1,096 |
Cable and satellite television distribution rights, net | — |  | 479 |  | 107 |  | — |  | 586 |
Goodwill | 4,169 |  | — |  | 1,038 |  | — |  | 5,207 |
Other intangible assets, net | 1,097 |  | 2,050 |  | 149 |  | — |  | 3,296 |
Other noncurrent assets | 10 |  | — |  | 62 |  | — |  | 72 |
Investments in subsidiaries | 4,853 |  | 1,526 |  | — |  | (6,379 | ) | — |
Total assets | $ | 11,935 |  | 4,339 |  | 3,025 |  | (6,379 | ) | 12,920 |
Liabilities and equity
Current liabilities: |  |  |  |  |
Current portion of debt and capital lease obligations | $ | 2 |  | — |  | 10 |  | — |  | 12 |
Accounts payable-trade | 287 |  | — |  | 254 |  | — |  | 541 |
Accrued liabilities | 249 |  | 106 |  | 426 |  | — |  | 781 |
Intercompany accounts payable (receivable) | 935 |  | (806 | ) | (129 | ) | — |  | — |
Total current liabilities | 1,473 |  | (700 | ) | 561 |  | — |  | 1,334 |
Long-term portion of debt and capital lease obligations | 3,945 |  | — |  | 53 |  | — |  | 3,998 |
Deferred compensation | 13 |  | — |  | 1 |  | — |  | 14 |
Deferred income taxes | 358 |  | 912 |  | 3 |  | — |  | 1,273 |
Other long-term liabilities | 91 |  | — |  | 49 |  | — |  | 140 |
Total liabilities | 5,880 |  | 212 |  | 667 |  | — |  | 6,759 |
Equity: |  |  |  |  |
QVC, Inc. stockholder's equity | 6,055 |  | 4,127 |  | 2,252 |  | (6,379 | ) | 6,055 |
Noncontrolling interest | — |  | — |  | 106 |  | — |  | 106 |
Total equity | 6,055 |  | 4,127 |  | 2,358 |  | (6,379 | ) | 6,161 |
Total liabilities and equity | $ | 11,935 |  | 4,339 |  | 3,025 |  | (6,379 | ) | 12,920 |
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Year | Condensed consolidating balance sheets
December 31, 2013 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Assets
Current assets: |  |  |  |  |
Cash and cash equivalents | $ | 78 |  | 133 |  | 246 |  | — |  | 457 |
Restricted cash | 11 |  | — |  | 3 |  | — |  | 14 |
Accounts receivable, net | 816 |  | — |  | 295 |  | — |  | 1,111 |
Inventories | 684 |  | — |  | 247 |  | — |  | 931 |
Deferred income taxes | 146 |  | — |  | 16 |  | — |  | 162 |
Prepaid expenses | 20 |  | — |  | 27 |  | — |  | 47 |
Total current assets | 1,755 |  | 133 |  | 834 |  | — |  | 2,722 |
Property and equipment, net | 265 |  | 67 |  | 774 |  | — |  | 1,106 |
Cable and satellite television distribution rights, net | — |  | 510 |  | 114 |  | — |  | 624 |
Goodwill | 4,169 |  | — |  | 1,028 |  | — |  | 5,197 |
Other intangible assets, net | 1,128 |  | 2,050 |  | 158 |  | — |  | 3,336 |
Other noncurrent assets | 8 |  | — |  | 63 |  | — |  | 71 |
Investments in subsidiaries | 4,894 |  | 1,628 |  | — |  | (6,522 | ) | — |
Total assets | $ | 12,219 |  | 4,388 |  | 2,971 |  | (6,522 | ) | 13,056 |
Liabilities and equity
Current liabilities: |  |  |  |  |
Current portion of debt and capital lease obligations | $ | 2 |  | — |  | 11 |  | — |  | 13 |
Accounts payable-trade | 336 |  | — |  | 158 |  | — |  | 494 |
Accrued liabilities | 393 |  | 96 |  | 471 |  | — |  | 960 |
Intercompany accounts payable (receivable) | 1,019 |  | (879 | ) | (140 | ) | — |  | — |
Total current liabilities | 1,750 |  | (783 | ) | 500 |  | — |  | 1,467 |
Long-term portion of debt and capital lease obligations | 3,745 |  | — |  | 55 |  | — |  | 3,800 |
Deferred compensation | 13 |  | — |  | 1 |  | — |  | 14 |
Deferred income taxes | 399 |  | 923 |  | 4 |  | — |  | 1,326 |
Other long-term liabilities | 90 |  | — |  | 18 |  | — |  | 108 |
Total liabilities | 5,997 |  | 140 |  | 578 |  | — |  | 6,715 |
Equity: |  |  |  |  |
QVC, Inc. stockholder's equity | 6,222 |  | 4,248 |  | 2,274 |  | (6,522 | ) | 6,222 |
Noncontrolling interest | — |  | — |  | 119 |  | — |  | 119 |
Total equity | 6,222 |  | 4,248 |  | 2,393 |  | (6,522 | ) | 6,341 |
Total liabilities and equity | $ | 12,219 |  | 4,388 |  | 2,971 |  | (6,522 | ) | 13,056 |
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Year | Condensed consolidating statements of operations
Three months ended March 31, 2014 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Net revenue | $ | 1,324 |  | 177 |  | 707 |  | (222 | ) | 1,986 |
Cost of goods sold | 842 |  | 24 |  | 447 |  | (57 | ) | 1,256 |
Gross profit | 482 |  | 153 |  | 260 |  | (165 | ) | 730 |
Operating expenses: |  |  |  |  |
Operating | 40 |  | 45 |  | 93 |  | — |  | 178 |
Selling, general and administrative, including stock-based compensation | 223 |  | 1 |  | 89 |  | (165 | ) | 148 |
Depreciation | 9 |  | 1 |  | 23 |  | — |  | 33 |
Amortization | 52 |  | 39 |  | 20 |  | — |  | 111 |
Intercompany management expense (income) | 20 |  | (3 | ) | (17 | ) | — |  | — |
| 344 |  | 83 |  | 208 |  | (165 | ) | 470 |
Operating income | 138 |  | 70 |  | 52 |  | — |  | 260 |
Other (expense) income: |  |  |  |  |
Equity in losses of investee | — |  | — |  | (1 | ) | — |  | (1 | )
Interest expense, net | (53 | ) | — |  | (9 | ) | — |  | (62 | )
Foreign currency (loss) gain | (2 | ) | — |  | 1 |  | — |  | (1 | )
Intercompany interest (expense) income | (5 | ) | 13 |  | (8 | ) | — |  | — |
| (60 | ) | 13 |  | (17 | ) | — |  | (64 | )
Income before income taxes | 78 |  | 83 |  | 35 |  | — |  | 196 |
Income tax benefit (expense) | 20 |  | (24 | ) | (70 | ) | — |  | (74 | )
Equity in earnings (losses) of subsidiaries, net of tax | 24 |  | (48 | ) | — |  | 24 |  | — |
Net income (loss) | 122 |  | 11 |  | (35 | ) | 24 |  | 122 |
Less net income attributable to the noncontrolling interest | (9 | ) | — |  | (9 | ) | 9 |  | (9 | )
Net income (loss) attributable to QVC, Inc. stockholder | $ | 113 |  | 11 |  | (44 | ) | 33 |  | 113 |
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Year | Condensed consolidating statements of operations - Adjusted
Three months ended March 31, 2013 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Net revenue | $ | 1,314 |  | 183 |  | 708 |  | (231 | ) | 1,974 |
Cost of goods sold | 843 |  | 25 |  | 445 |  | (61 | ) | 1,252 |
Gross profit | 471 |  | 158 |  | 263 |  | (170 | ) | 722 |
Operating expenses: |  |  |  |  |
Operating | 37 |  | 46 |  | 90 |  | — |  | 173 |
Selling, general and administrative, including stock-based compensation | 235 |  | — |  | 90 |  | (170 | ) | 155 |
Depreciation | 10 |  | 1 |  | 19 |  | — |  | 30 |
Amortization | 51 |  | 34 |  | 19 |  | — |  | 104 |
Intercompany management expense (income) | 17 |  | (4 | ) | (13 | ) | — |  | — |
| 350 |  | 77 |  | 205 |  | (170 | ) | 462 |
Operating income | 121 |  | 81 |  | 58 |  | — |  | 260 |
Other income (expense): |  |  |  |  |
Equity in earnings of investee | — |  | — |  | 1 |  | — |  | 1 |
Gains on financial instruments | 12 |  | — |  | — |  | — |  | 12 |
Interest expense, net | (62 | ) | — |  | (1 | ) | — |  | (63 | )
Foreign currency (loss) gain | (1 | ) | (1 | ) | 1 |  | — |  | (1 | )
Loss on extinguishment of debt | (41 | ) | — |  | — |  | — |  | (41 | )
Intercompany interest (expense) income | (3 | ) | 12 |  | (9 | ) | — |  | — |
| (95 | ) | 11 |  | (8 | ) | — |  | (92 | )
Income before income taxes | 26 |  | 92 |  | 50 |  | — |  | 168 |
Income tax expense | (10 | ) | (28 | ) | (24 | ) | — |  | (62 | )
Equity in earnings of subsidiaries, net of tax | 90 |  | 16 |  | — |  | (106 | ) | — |
Net income | 106 |  | 80 |  | 26 |  | (106 | ) | 106 |
Less net income attributable to the noncontrolling interest | (12 | ) | — |  | (12 | ) | 12 |  | (12 | )
Net income attributable to QVC, Inc. stockholder | $ | 94 |  | 80 |  | 14 |  | (94 | ) | 94 |
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Year | onsolidating statements of comprehensive income
Three months ended March 31, 2014 |
(in millions) | Subsidiary issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Net income (loss) | $ | 122 |  | 11 |  | (35 | ) | 24 |  | 122 |
Foreign currency translation adjustments | 16 |  | — |  | 16 |  | (16 | ) | 16 |
Total comprehensive income (loss) | 138 |  | 11 |  | (19 | ) | 8 |  | 138 |
Comprehensive income attributable to noncontrolling interest | (12 | ) | — |  | (12 | ) | 12 |  | (12 | )
Comprehensive income (loss) attributable to QVC, Inc. stockholder | 126 |  | 11 |  | (31 | ) | 20 |  | 126 |
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Year |
Three months ended March 31, 2013 |
(in millions) | Subsidiary issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Net income | $ | 106 |  | 80 |  | 26 |  | (106 | ) | 106 |
Foreign currency translation adjustments | (91 | ) | — |  | (91 | ) | 91 |  | (91 | )
Total comprehensive income (loss) | 15 |  | 80 |  | (65 | ) | (15 | ) | 15 |
Comprehensive income attributable to noncontrolling interest | 1 |  | — |  | 1 |  | (1 | ) | 1 |
Comprehensive income (loss) attributable to QVC, Inc. stockholder | 16 |  | 80 |  | (64 | ) | (16 | ) | 16 |
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Year | Condensed consolidating statements of cash flows
Three months ended March 31, 2014 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Operating activities: |  |  |  |  |  |  |  |  |  |
Net cash provided by operating activities | 107 |  | 98 |  | 56 |  | — |  | 261 |
Investing activities: |  |  |  |  |  |  |  |  |  |
Capital expenditures, net | (12 | ) | — |  | (17 | ) | — |  | (29 | )
Expenditures for cable and satellite television distribution rights, net | — |  | (8 | ) | — |  | — |  | (8 | )
Changes in other noncurrent assets | (2 | ) | — |  | — |  | — |  | (2 | )
Intercompany investing activities | 65 |  | 54 |  | — |  | (119 | ) | — |
Net cash provided by (used in) investing activities | 51 |  | 46 |  | (17 | ) | (119 | ) | (39 | )
Financing activities: |  |  |  |  |  |  |  |  |  |
Principal payments of debt and capital lease obligations | (1,186 | ) | — |  | (2 | ) | — |  | (1,188 | )
Principal borrowings of debt from senior secured credit facility | 384 |  | — |  | — |  | — |  | 384 |
Proceeds from issuance of senior secured notes, net of original issue discount | 999 |  | — |  | — |  | — |  | 999 |
Payment of debt origination fees | (12 | ) | — |  | — |  | — |  | (12 | )
Other financing activities | 7 |  | — |  | — |  | — |  | 7 |
Dividends paid to Liberty | (286 | ) | — |  | — |  | — |  | (286 | )
Dividends paid to noncontrolling interest | — |  | — |  | (25 | ) | — |  | (25 | )
Net short-term intercompany debt (repayments) borrowings | (84 | ) | 73 |  | 11 |  | — |  | — |
Intercompany financing activities | (11 | ) | (132 | ) | 24 |  | 119 |  | — |
Net cash (used in) provided by financing activities | (189 | ) | (59 | ) | 8 |  | 119 |  | (121 | )
Effect of foreign exchange rate changes on cash and cash equivalents | — |  | — |  | — |  | — |  | — |
Net (decrease) increase in cash and cash equivalents | (31 | ) | 85 |  | 47 |  | — |  | 101 |
Cash and cash equivalents, beginning of period | 78 |  | 133 |  | 246 |  | — |  | 457 |
Cash and cash equivalents, end of period | 47 |  | 218 |  | 293 |  | — |  | 558 |
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Year | Condensed consolidating statements of cash flows - Adjusted
Three months ended March 31, 2013 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Operating activities: |  |  |  |  |
Net cash provided by operating activities | 62 |  | 79 |  | 34 |  | — |  | 175 |
Investing activities: |  |  |  |  |
Capital expenditures, net | (12 | ) | — |  | (21 | ) | — |  | (33 | )
Expenditures for cable and satellite television distribution rights, net | — |  | (24 | ) | (1 | ) | — |  | (25 | )
Changes in other noncurrent assets | (1 | ) | — |  | (3 | ) | — |  | (4 | )
Intercompany investing activities | 212 |  | 104 |  | — |  | (316 | ) | — |
Net cash provided by (used in) investing activities | 199 |  | 80 |  | (25 | ) | (316 | ) | (62 | )
Financing activities: |  |  |  |  |  |  |  |  |  |
Principal payments of debt and capital lease obligations | (1,166 | ) | — |  | (2 | ) | — |  | (1,168 | )
Principal borrowings of debt from senior secured credit facility | 240 |  | — |  | — |  | — |  | 240 |
Proceeds from issuance of senior secured notes, net of original issue discount | 1,050 |  | — |  | — |  | — |  | 1,050 |
Payment of debt origination fees | (14 | ) | — |  | — |  | — |  | (14 | )
Payment of bond premium fees | (33 | ) | — |  | — |  | — |  | (33 | )
Other financing activities | 4 |  | — |  | — |  | — |  | 4 |
Dividends paid to Liberty | (244 | ) | — |  | — |  | — |  | (244 | )
Dividends paid to noncontrolling interest | — |  | — |  | (25 | ) | — |  | (25 | )
Net short-term intercompany debt (repayments) borrowings | (76 | ) | 84 |  | (8 | ) | — |  | — |
Intercompany financing activities | (94 | ) | (240 | ) | 18 |  | 316 |  | — |
Net cash used in financing activities | (333 | ) | (156 | ) | (17 | ) | 316 |  | (190 | )
Effect of foreign exchange rate changes on cash and cash equivalents | — |  | — |  | (24 | ) | — |  | (24 | )
Net (decrease) increase in cash and cash equivalents | (72 | ) | 3 |  | (32 | ) | — |  | (101 | )
Cash and cash equivalents, beginning of period | 75 |  | 165 |  | 300 |  | — |  | 540 |
Cash and cash equivalents, end of period | 3 |  | 168 |  | 268 |  | — |  | 439 |

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