XML 46 R35.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Guarantor/Non-Guarantor Subsidiary Financial Information (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2018
Guarantor Non-guarantor Subsidiary Financial Information [Abstract] |
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Period | Condensed Consolidating Balance Sheets
March 31, 2018 |
(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 | $ | 10 |  | 97 |  | 241 |  | — |  | 348 |
Restricted cash | 5 |  | — |  | 3 |  | — |  | 8 |
Accounts receivable, net | 761 |  | — |  | 281 |  | — |  | 1,042 |
Inventories | 769 |  | — |  | 304 |  | — |  | 1,073 |
Prepaid expenses and other current assets | 84 |  | — |  | 50 |  | — |  | 134 |
Total current assets | 1,629 |  | 97 |  | 879 |  | — |  | 2,605 |
Property and equipment, net | 284 |  | 58 |  | 682 |  | — |  | 1,024 |
Television distribution rights, net | — |  | 81 |  | 1 |  | — |  | 82 |
Goodwill | 4,190 |  | — |  | 919 |  | — |  | 5,109 |
Other intangible assets, net | 532 |  | 2,048 |  | 17 |  | — |  | 2,597 |
Other noncurrent assets | 15 |  | — |  | 52 |  | — |  | 67 |
Investments in subsidiaries | 3,694 |  | 1,772 |  | — |  | (5,466 | ) | — |
Total assets | $ | 10,344 |  | 4,056 |  | 2,550 |  | (5,466 | ) | 11,484 |
Liabilities and equity
Current liabilities: |  |  |  |  |
Current portion of debt and capital lease obligations | $ | 4 |  | — |  | 14 |  | — |  | 18 |
Accounts payable-trade | 381 |  | — |  | 283 |  | — |  | 664 |
Accrued liabilities | 223 |  | 260 |  | 306 |  | — |  | 789 |
Intercompany accounts payable (receivable) | 434 |  | (1,499 | ) | 1,065 |  | — |  | — |
Total current liabilities | 1,042 |  | (1,239 | ) | 1,668 |  | — |  | 1,471 |
Long-term portion of debt and capital lease obligations | 4,942 |  | — |  | 156 |  | — |  | 5,098 |
Deferred income taxes | 58 |  | 470 |  | (48 | ) | — |  | 480 |
Other long-term liabilities | 90 |  | — |  | 28 |  | — |  | 118 |
Total liabilities | 6,132 |  | (769 | ) | 1,804 |  | — |  | 7,167 |
Equity: |  |  |  |  |
QVC, Inc. stockholder's equity | 4,212 |  | 4,825 |  | 641 |  | (5,466 | ) | 4,212 |
Noncontrolling interest | — |  | — |  | 105 |  | — |  | 105 |
Total equity | 4,212 |  | 4,825 |  | 746 |  | (5,466 | ) | 4,317 |
Total liabilities and equity | $ | 10,344 |  | 4,056 |  | 2,550 |  | (5,466 | ) | 11,484 |
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Period | Condensed Consolidating Balance Sheets
December 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 | $ | 2 |  | 33 |  | 225 |  | — |  | 260 |
Restricted cash | 5 |  | — |  | 3 |  | — |  | 8 |
Accounts receivable, net | 1,076 |  | — |  | 312 |  | — |  | 1,388 |
Inventories | 758 |  | — |  | 261 |  | — |  | 1,019 |
Prepaid expenses and other current assets | 28 |  | — |  | 23 |  | — |  | 51 |
Total current assets | 1,869 |  | 33 |  | 824 |  | — |  | 2,726 |
Property and equipment, net | 295 |  | 60 |  | 650 |  | — |  | 1,005 |
Television distribution rights, net | — |  | 78 |  | — |  | — |  | 78 |
Goodwill | 4,190 |  | — |  | 885 |  | — |  | 5,075 |
Other intangible assets, net | 539 |  | 2,048 |  | 18 |  | — |  | 2,605 |
Other noncurrent assets | 14 |  | — |  | 47 |  | — |  | 61 |
Investments in subsidiaries | 3,579 |  | 1,626 |  | — |  | (5,205 | ) | — |
Total assets | $ | 10,486 |  | 3,845 |  | 2,424 |  | (5,205 | ) | 11,550 |
Liabilities and equity
Current liabilities: |  |  |  |  |
Current portion of debt and capital lease obligations | $ | 3 |  | — |  | 14 |  | — |  | 17 |
Accounts payable-trade | 455 |  | — |  | 301 |  | — |  | 756 |
Accrued liabilities | 366 |  | 227 |  | 279 |  | — |  | 872 |
Intercompany accounts payable (receivable) | 453 |  | (1,513 | ) | 1,060 |  | — |  | — |
Total current liabilities | 1,277 |  | (1,286 | ) | 1,654 |  | — |  | 1,645 |
Long-term portion of debt and capital lease obligations | 5,033 |  | — |  | 140 |  | — |  | 5,173 |
Deferred income taxes | 52 |  | 468 |  | (47 | ) | — |  | 473 |
Other long-term liabilities | 92 |  | — |  | 25 |  | — |  | 117 |
Total liabilities | 6,454 |  | (818 | ) | 1,772 |  | — |  | 7,408 |
Equity: |  |  |  |  |
QVC, Inc. stockholder's equity | 4,032 |  | 4,663 |  | 542 |  | (5,205 | ) | 4,032 |
Noncontrolling interest | — |  | — |  | 110 |  | — |  | 110 |
Total equity | 4,032 |  | 4,663 |  | 652 |  | (5,205 | ) | 4,142 |
Total liabilities and equity | $ | 10,486 |  | 3,845 |  | 2,424 |  | (5,205 | ) | 11,550 |
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Period | Condensed Consolidating Statements of Operations
Three months ended March 31, 2018 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Net revenue | $ | 1,455 |  | 223 |  | 728 |  | (313 | ) | 2,093 |
Operating costs and expenses |  |  |  |  |
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 878 |  | 35 |  | 447 |  | (40 | ) | 1,320 |
Operating | 102 |  | 58 |  | 74 |  | (89 | ) | 145 |
Selling, general and administrative, including transaction related costs and stock-based compensation | 279 |  | — |  | 113 |  | (184 | ) | 208 |
Depreciation | 16 |  | 3 |  | 19 |  | — |  | 38 |
Amortization | 20 |  | 16 |  | 3 |  | — |  | 39 |
| 1,295 |  | 112 |  | 656 |  | (313 | ) | 1,750 |
Operating income | 160 |  | 111 |  | 72 |  | — |  | 343 |
Other (expense) income: |  |  |  |  |
Equity in income of investee | — |  | — |  | 1 |  | — |  | 1 |
Interest expense, net | (57 | ) | — |  | — |  | — |  | (57 | )
Foreign currency loss | (4 | ) | — |  | 3 |  | — |  | (1 | )
Intercompany interest (expense) income | (7 | ) | 38 |  | (31 | ) | — |  | — |
| (68 | ) | 38 |  | (27 | ) | — |  | (57 | )
Income before income taxes | 92 |  | 149 |  | 45 |  | — |  | 286 |
Income tax expense | (22 | ) | (34 | ) | (23 | ) | — |  | (79 | )
Equity in earnings of subsidiaries, net of tax | 137 |  | 25 |  | — |  | (162 | ) | — |
Net income | 207 |  | 140 |  | 22 |  | (162 | ) | 207 |
Less net income attributable to the noncontrolling interest | (11 | ) | — |  | (11 | ) | 11 |  | (11 | )
Net income attributable to QVC, Inc. stockholder | $ | 196 |  | 140 |  | 11 |  | (151 | ) | 196 |
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior 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 |
Operating costs and expenses |  |  |  |  |
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 855 |  | 37 |  | 391 |  | (40 | ) | 1,243 |
Operating | 100 |  | 58 |  | 68 |  | (89 | ) | 137 |
Selling, general and administrative, including transaction related costs and stock-based compensation | 242 |  | — |  | 94 |  | (179 | ) | 157 |
Depreciation | 17 |  | 2 |  | 22 |  | — |  | 41 |
Amortization | 60 |  | 45 |  | 11 |  | — |  | 116 |
| 1,274 |  | 142 |  | 586 |  | (308 | ) | 1,694 |
Operating income | 130 |  | 83 |  | 58 |  | — |  | 271 |
Other (expense) income: |  |  |  |  |
Equity in losses of investee | — |  | — |  | (2 | ) | — |  | (2 | )
Interest expense, net | (55 | ) | — |  | — |  | — |  | (55 | )
Foreign currency gain (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, Comprehensive Income (Loss), Current Period | Condensed Consolidating Statements of Comprehensive Income
Three months ended March 31, 2018 |
(in millions) | Parent issuer- QVC, Inc. |  | Combined subsidiary guarantors |  | Combined non-guarantor subsidiaries |  | Eliminations |  | Consolidated- QVC, Inc. and subsidiaries |
Net income | $ | 207 |  | 140 |  | 22 |  | (162 | ) | 207 |
Foreign currency translation adjustments | 70 |  | — |  | 70 |  | (70 | ) | 70 |
Total comprehensive income | 277 |  | 140 |  | 92 |  | (232 | ) | 277 |
Comprehensive income attributable to noncontrolling interest | (18 | ) | — |  | (18 | ) | 18 |  | (18 | )
Comprehensive income attributable to QVC, Inc. stockholder | $ | 259 |  | 140 |  | 74 |  | (214 | ) | 259 |
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior 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, Schedule of Cash Flows, Current Period | Condensed Consolidating Statements of Cash Flows
Three months ended March 31, 2018 |
(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 | $ | 166 |  | 169 |  | 14 |  | — |  | 349 |
Investing activities: |  |  |  |  |
Capital expenditures | (18 | ) | (1 | ) | (17 | ) | — |  | (36 | )
Expenditures for television distribution rights | — |  | (19 | ) | (1 | ) | — |  | (20 | )
Changes in other noncurrent assets | 2 |  | — |  | (2 | ) | — |  | — |
Intercompany investing activities | 82 |  | (105 | ) | — |  | 23 |  | — |
Net cash provided by (used in) investing activities | 66 |  | (125 | ) | (20 | ) | 23 |  | (56 | )
Financing activities: |  |  |  |  |
Principal payments of debt and capital lease obligations | (964 | ) | — |  | (3 | ) | — |  | (967 | )
Principal borrowings of debt from senior secured credit facility | 872 |  | — |  | — |  | — |  | 872 |
Capital contribution received from Qurate Retail, Inc. | 140 |  | — |  | — |  | — |  | 140 |
Dividends paid to Qurate Retail, Inc. | (233 | ) | — |  | — |  | — |  | (233 | )
Dividends paid to noncontrolling interest | — |  | — |  | (23 | ) | — |  | (23 | )
Other financing activities | (7 | ) | — |  | — |  | — |  | (7 | )
Net short-term intercompany debt (repayments) borrowings | (19 | ) | 14 |  | 5 |  | — |  | — |
Other intercompany financing activities | (13 | ) | 6 |  | 30 |  | (23 | ) | — |
Net cash (used in) provided by financing activities | (224 | ) | 20 |  | 9 |  | (23 | ) | (218 | )
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | — |  | — |  | 13 |  | — |  | 13 |
Net increase in cash, cash equivalents and restricted cash | 8 |  | 64 |  | 16 |  | — |  | 88 |
Cash, cash equivalents and restricted cash, beginning of period | 7 |  | 33 |  | 228 |  | — |  | 268 |
Cash, cash equivalents and restricted cash, end of period | $ | 15 |  | 97 |  | 244 |  | — |  | 356 |
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior 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 | )
Other investing activities | — |  | — |  | — |  | — |  | — |
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 Qurate Retail, Inc. | (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, cash equivalents and restricted cash | — |  | — |  | 9 |  | — |  | 9 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (1 | ) | 54 |  | (13 | ) | — |  | 40 |
Cash, cash equivalents and restricted cash, beginning of period | 10 |  | 97 |  | 187 |  | — |  | 294 |
Cash, cash equivalents and restricted cash, end of period | $ | 9 |  | 151 |  | 174 |  | — |  | 334 |

X
- Definition Guarantor/Non-guarantor Subsidiary Financial Information [Abstract] + References No definition available. + Details
Name: | qvc_GuarantorNonGuarantorSubsidiaryFinancialInformationAbstract
Namespace Prefix: | qvc_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the guarantor/non-guarantor subsidiary financial data. + References No definition available. + Details
Name: | qvc_GuarantorNonGuarantorSubsidiaryFinancialInformationBalanceSheetsCurrentPeriodTableTextBlock
Namespace Prefix: | qvc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition [Table Text Block] for Tabular disclosure of the guarantor/non-guarantor subsidiary financial data. + References No definition available. + Details
Name: | qvc_GuarantorNonGuarantorSubsidiaryFinancialInformationBalanceSheetsPriorPeriodTableTextBlock
Namespace Prefix: | qvc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition [Table Text Block] for Tabular disclosure of the guarantor/non-guarantor subsidiary financial data. + References No definition available. + Details
Name: | qvc_GuarantorNonGuarantorSubsidiaryFinancialInformationComprehensiveIncomeLossPriorPeriodTableTextBlock
Namespace Prefix: | qvc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the guarantor/non-guarantor subsidiary financial data. + References No definition available. + Details
Name: | qvc_GuarantorNonGuarantorSubsidiaryFinancialInformationComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | qvc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition [Table Text Block] for Tabular disclosure of the guarantor/non-guarantor subsidiary financial data. + References No definition available. + Details
Name: | qvc_GuarantorNonGuarantorSubsidiaryFinancialInformationScheduleOfCashFlowsPriorYearTableTextBlock
Namespace Prefix: | qvc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the guarantor/non-guarantor subsidiary financial data. + References No definition available. + Details
Name: | qvc_GuarantorNonGuarantorSubsidiaryFinancialInformationScheduleOfCashFlowsTableTextBlock
Namespace Prefix: | qvc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the guarantor/non-guarantor subsidiary financial data. + References No definition available. + Details
Name: | qvc_GuarantorNonGuarantorSubsidiaryFinancialInformationStatementsOfOperationsCurrentPeriodTableTextBlock
Namespace Prefix: | qvc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition [Table Text Block] for Tabular disclosure of the guarantor/non-guarantor subsidiary financial data. + References No definition available. + Details
Name: | qvc_GuarantorNonGuarantorSubsidiaryFinancialInformationStatementsOfOperationsPriorPeriodTableTextBlock
Namespace Prefix: | qvc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration