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Guarantor/Non-Guarantor Subsidiary Financial Information (Tables) | 3 Months Ended
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Mar. 31, 2017
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] |
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Period | Condensed Consolidating Balance Sheets
March 31, 2017 |
(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 | $ | 1 |  | 151 |  | 172 |  | — |  | 324 |
Restricted cash | 8 |  | — |  | 2 |  | — |  | 10 |
Accounts receivable, net | 660 |  | — |  | 258 |  | — |  | 918 |
Inventories | 764 |  | — |  | 256 |  | — |  | 1,020 |
Prepaid expenses and other current assets | 30 |  | — |  | 28 |  | — |  | 58 |
Total current assets | 1,463 |  | 151 |  | 716 |  | — |  | 2,330 |
Property and equipment, net | 302 |  | 62 |  | 651 |  | — |  | 1,015 |
Television distribution rights, net | — |  | 124 |  | 10 |  | — |  | 134 |
Goodwill | 4,190 |  | — |  | 828 |  | — |  | 5,018 |
Other intangible assets, net | 617 |  | 2,049 |  | 20 |  | — |  | 2,686 |
Other noncurrent assets | 18 |  | — |  | 47 |  | — |  | 65 |
Investments in subsidiaries | 3,306 |  | 115 |  | — |  | (3,421 | ) | — |
Total assets | $ | 9,896 |  | 2,501 |  | 2,272 |  | (3,421 | ) | 11,248 |
Liabilities and equity
Current liabilities: |  |  |  |  |
Current portion of debt and capital lease obligations | $ | 3 |  | — |  | 12 |  | — |  | 15 |
Accounts payable-trade | 365 |  | — |  | 262 |  | — |  | 627 |
Accrued liabilities (1) | (33 | ) | 279 |  | 499 |  | — |  | 745 |
Intercompany accounts payable (receivable) | 603 |  | (1,276 | ) | 673 |  | — |  | — |
Total current liabilities | 938 |  | (997 | ) | 1,446 |  | — |  | 1,387 |
Long-term portion of debt and capital lease obligations | 4,940 |  | — |  | 148 |  | — |  | 5,088 |
Deferred income taxes | 143 |  | 696 |  | (63 | ) | — |  | 776 |
Other long-term liabilities | 107 |  | — |  | 27 |  | — |  | 134 |
Total liabilities | 6,128 |  | (301 | ) | 1,558 |  | — |  | 7,385 |
Equity: |  |  |  |  |
QVC, Inc. stockholder's equity | 3,768 |  | 2,802 |  | 619 |  | (3,421 | ) | 3,768 |
Noncontrolling interest | — |  | — |  | 95 |  | — |  | 95 |
Total equity | 3,768 |  | 2,802 |  | 714 |  | (3,421 | ) | 3,863 |
Total liabilities and equity | $ | 9,896 |  | 2,501 |  | 2,272 |  | (3,421 | ) | 11,248 |
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Period | Condensed Consolidating Balance Sheets
December 31, 2016 |
(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 | $ | 2 |  | 97 |  | 185 |  | — |  | 284 |
Restricted cash | 8 |  | — |  | 2 |  | — |  | 10 |
Accounts receivable, net | 958 |  | — |  | 288 |  | — |  | 1,246 |
Inventories | 726 |  | — |  | 224 |  | — |  | 950 |
Prepaid expenses and other current assets | 22 |  | — |  | 24 |  | — |  | 46 |
Total current assets | 1,716 |  | 97 |  | 723 |  | — |  | 2,536 |
Property and equipment, net | 317 |  | 63 |  | 651 |  | — |  | 1,031 |
Television distribution rights, net | — |  | 167 |  | 16 |  | — |  | 183 |
Goodwill | 4,190 |  | — |  | 805 |  | — |  | 4,995 |
Other intangible assets, net | 666 |  | 2,049 |  | 23 |  | — |  | 2,738 |
Other noncurrent assets | 15 |  | — |  | 47 |  | — |  | 62 |
Investments in subsidiaries | 3,389 |  | 1,030 |  | — |  | (4,419 | ) | — |
Total assets | $ | 10,293 |  | 3,406 |  | 2,265 |  | (4,419 | ) | 11,545 |
Liabilities and equity
Current liabilities: |  |  |  |  |
Current portion of debt and capital lease obligations | $ | 3 |  | — |  | 11 |  | — |  | 14 |
Accounts payable-trade | 425 |  | — |  | 253 |  | — |  | 678 |
Accrued liabilities | 74 |  | 234 |  | 461 |  | — |  | 769 |
Intercompany accounts payable (receivable) | 623 |  | (246 | ) | (377 | ) | — |  | — |
Total current liabilities | 1,125 |  | (12 | ) | 348 |  | — |  | 1,461 |
Long-term portion of debt and capital lease obligations | 5,132 |  | — |  | 143 |  | — |  | 5,275 |
Deferred income taxes | 145 |  | 707 |  | (74 | ) | — |  | 778 |
Other long-term liabilities | 96 |  | — |  | 40 |  | — |  | 136 |
Total liabilities | 6,498 |  | 695 |  | 457 |  | — |  | 7,650 |
Equity: |  |  |  |  |
QVC, Inc. stockholder's equity | 3,795 |  | 2,711 |  | 1,708 |  | (4,419 | ) | 3,795 |
Noncontrolling interest | — |  | — |  | 100 |  | — |  | 100 |
Total equity | 3,795 |  | 2,711 |  | 1,808 |  | (4,419 | ) | 3,895 |
Total liabilities and equity | $ | 10,293 |  | 3,406 |  | 2,265 |  | (4,419 | ) | 11,545 |
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Period | Condensed Consolidating Statements of Operations
Three months ended March 31, 2017 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Net revenue | $ | 1,404 |  | 225 |  | 644 |  | (308 | ) | 1,965 |
Cost of goods sold | 855 |  | 37 |  | 391 |  | (40 | ) | 1,243 |
Gross profit | 549 |  | 188 |  | 253 |  | (268 | ) | 722 |
Operating expenses: |  |  |  |  |
Operating | 100 |  | 58 |  | 68 |  | (89 | ) | 137 |
Selling, general and administrative, including stock-based compensation | 242 |  | — |  | 94 |  | (179 | ) | 157 |
Depreciation | 17 |  | 2 |  | 22 |  | — |  | 41 |
Amortization | 60 |  | 45 |  | 11 |  | — |  | 116 |
| 419 |  | 105 |  | 195 |  | (268 | ) | 451 |
Operating income | 130 |  | 83 |  | 58 |  | — |  | 271 |
Other (expense) income: |  |  |  |  |
Equity in losses of investee | — |  | — |  | (2 | ) | — |  | (2 | )
Interest expense, net | (55 | ) | — |  | — |  | — |  | (55 | )
Foreign currency loss | (1 | ) | — |  | (1 | ) | — |  | (2 | )
Intercompany interest (expense) income | (1 | ) | 22 |  | (21 | ) | — |  | — |
| (57 | ) | 22 |  | (24 | ) | — |  | (59 | )
Income before income taxes | 73 |  | 105 |  | 34 |  | — |  | 212 |
Income tax expense | (32 | ) | (30 | ) | (15 | ) | — |  | (77 | )
Equity in earnings of subsidiaries, net of tax | 94 |  | 17 |  | — |  | (111 | ) | — |
Net income | 135 |  | 92 |  | 19 |  | (111 | ) | 135 |
Less net income attributable to the noncontrolling interest | (11 | ) | — |  | (11 | ) | 11 |  | (11 | )
Net income attributable to QVC, Inc. stockholder | $ | 124 |  | 92 |  | 8 |  | (100 | ) | 124 |
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Period | Condensed Consolidating Statements of Operations
Three months ended March 31, 2016 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Net revenue | $ | 1,444 |  | 233 |  | 665 |  | (329 | ) | 2,013 |
Cost of goods sold | 876 |  | 42 |  | 409 |  | (47 | ) | 1,280 |
Gross profit | 568 |  | 191 |  | 256 |  | (282 | ) | 733 |
Operating expenses: |  |  |  |  |
Operating | 109 |  | 59 |  | 72 |  | (98 | ) | 142 |
Selling, general and administrative, including stock-based compensation | 263 |  | — |  | 103 |  | (184 | ) | 182 |
Depreciation | 12 |  | 2 |  | 20 |  | — |  | 34 |
Amortization | 60 |  | 41 |  | 13 |  | — |  | 114 |
| 444 |  | 102 |  | 208 |  | (282 | ) | 472 |
Operating income | 124 |  | 89 |  | 48 |  | — |  | 261 |
Other (expense) income: |  |  |  |  |
Equity in losses of investee | — |  | — |  | (1 | ) | — |  | (1 | )
Interest expense, net | (53 | ) | — |  | — |  | — |  | (53 | )
Foreign currency gain (loss) | 3 |  | (2 | ) | 1 |  | — |  | 2 |
Intercompany interest (expense) income | — |  | (21 | ) | 21 |  | — |  | — |
| (50 | ) | (23 | ) | 21 |  | — |  | (52 | )
Income before income taxes | 74 |  | 66 |  | 69 |  | — |  | 209 |
Income tax expense | (24 | ) | (26 | ) | (26 | ) | — |  | (76 | )
Equity in earnings of subsidiaries, net of tax | 83 |  | 56 |  | — |  | (139 | ) | — |
Net income | 133 |  | 96 |  | 43 |  | (139 | ) | 133 |
Less net income attributable to the noncontrolling interest | (8 | ) | — |  | (8 | ) | 8 |  | (8 | )
Net income attributable to QVC, Inc. stockholder | $ | 125 |  | 96 |  | 35 |  | (131 | ) | 125 |
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Period | Condensed Consolidating Statements of Comprehensive Income
Three months ended March 31, 2017 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Net income | $ | 135 |  | 92 |  | 19 |  | (111 | ) | 135 |
Foreign currency translation adjustments | 27 |  | — |  | 27 |  | (27 | ) | 27 |
Total comprehensive income | 162 |  | 92 |  | 46 |  | (138 | ) | 162 |
Comprehensive income attributable to noncontrolling interest | (17 | ) | — |  | (17 | ) | 17 |  | (17 | )
Comprehensive income attributable to QVC, Inc. stockholder | $ | 145 |  | 92 |  | 29 |  | (121 | ) | 145 |
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Period | Condensed Consolidating Statements of Comprehensive Income
Three months ended March 31, 2016 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Net income | $ | 133 |  | 96 |  | 43 |  | (139 | ) | 133 |
Foreign currency translation adjustments | 34 |  | — |  | 34 |  | (34 | ) | 34 |
Total comprehensive income | 167 |  | 96 |  | 77 |  | (173 | ) | 167 |
Comprehensive income attributable to noncontrolling interest | (15 | ) | — |  | (15 | ) | 15 |  | (15 | )
Comprehensive income attributable to QVC, Inc. stockholder | $ | 152 |  | 96 |  | 62 |  | (158 | ) | 152 |
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Period | Condensed Consolidating Statements of Cash Flows
Three months ended March 31, 2017 |
(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 | $ | 220 |  | 155 |  | 82 |  | — |  | 457 |
Investing activities: |  |  |  |  |
Capital expenditures | (13 | ) | (1 | ) | (3 | ) | — |  | (17 | )
Expenditures for television distribution rights | — |  | (1 | ) | — |  | — |  | (1 | )
Changes in other noncurrent assets | (2 | ) | — |  | (1 | ) | — |  | (3 | )
Intercompany investing activities | 201 |  | (522 | ) | — |  | 321 |  | — |
Net cash provided by (used in) investing activities | 186 |  | (524 | ) | (4 | ) | 321 |  | (21 | )
Financing activities: |  |  |  |  |
Principal payments of debt and capital lease obligations | (648 | ) | — |  | (2 | ) | — |  | (650 | )
Principal borrowings of debt from senior secured credit facility | 454 |  | — |  | — |  | — |  | 454 |
Dividends paid to Liberty Interactive Corporation | (183 | ) | — |  | — |  | — |  | (183 | )
Dividends paid to noncontrolling interest | — |  | — |  | (22 | ) | — |  | (22 | )
Other financing activities | (4 | ) | — |  | — |  | — |  | (4 | )
Net short-term intercompany debt (repayments) borrowings | (20 | ) | (1,030 | ) | 1,050 |  | — |  | — |
Other intercompany financing activities | (6 | ) | 1,453 |  | (1,126 | ) | (321 | ) | — |
Net cash (used in) provided by financing activities | (407 | ) | 423 |  | (100 | ) | (321 | ) | (405 | )
Effect of foreign exchange rate changes on cash and cash equivalents | — |  | — |  | 9 |  | — |  | 9 |
Net (decrease) increase in cash and cash equivalents | (1 | ) | 54 |  | (13 | ) | — |  | 40 |
Cash and cash equivalents, beginning of period | 2 |  | 97 |  | 185 |  | — |  | 284 |
Cash and cash equivalents, end of period | $ | 1 |  | 151 |  | 172 |  | — |  | 324 |
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Period | Condensed Consolidating Statements of Cash Flows
Three months ended March 31, 2016 |
(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 (used in) operating activities | $ | 209 |  | 77 |  | (6 | ) | — |  | 280 |
Investing activities: |  |  |  |  |
Capital expenditures | (29 | ) | (1 | ) | (9 | ) | — |  | (39 | )
Expenditures for television distribution rights | — |  | (1 | ) | — |  | — |  | (1 | )
Other investing activities | (6 | ) | — |  | — |  | — |  | (6 | )
Changes in other noncurrent assets | 1 |  | — |  | (3 | ) | — |  | (2 | )
Intercompany investing activities | 151 |  | 22 |  | — |  | (173 | ) | — |
Net cash provided by (used in) investing activities | 117 |  | 20 |  | (12 | ) | (173 | ) | (48 | )
Financing activities: |  |  |  |  |
Principal payments of debt and capital lease obligations | (436 | ) | — |  | (2 | ) | — |  | (438 | )
Principal borrowings of debt from senior secured credit facility | 515 |  | — |  | — |  | — |  | 515 |
Dividends paid to Liberty Interactive Corporation | (234 | ) | — |  | — |  | — |  | (234 | )
Dividends paid to noncontrolling interest | — |  | — |  | (21 | ) | — |  | (21 | )
Other financing activities | (7 | ) | — |  | — |  | — |  | (7 | )
Net short-term intercompany debt (repayments) borrowings | (82 | ) | 137 |  | (55 | ) | — |  | — |
Other intercompany financing activities | (80 | ) | (154 | ) | 61 |  | 173 |  | — |
Net cash used in financing activities | (324 | ) | (17 | ) | (17 | ) | 173 |  | (185 | )
Effect of foreign exchange rate changes on cash and cash equivalents | — |  | — |  | (13 | ) | — |  | (13 | )
Net increase (decrease) in cash and cash equivalents | 2 |  | 80 |  | (48 | ) | — |  | 34 |
Cash and cash equivalents, beginning of period | — |  | 112 |  | 215 |  | — |  | 327 |
Cash and cash equivalents, end of period | $ | 2 |  | 192 |  | 167 |  | — |  | 361 |

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