XML 21 R12.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Goodwill and Intangibles | 9 Months Ended
--- | ---
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure | Goodwill and Other Intangible Assets, Net The changes in the carrying amount of goodwill by operating segment for the nine months ended September 30, 2022 were as follows:
(in millions) | QxH | QVC-International | Total
Balance as of December 31, 2021 | $ | 5,112 |  | 856 |  | 5,968 |
Impairment | (2,420) |  | — |  | (2,420) |
Exchange rate fluctuations | — |  | (149) |  | (149) |
Balance as of September 30, 2022 | $ | 2,692 |  | 707 |  | 3,399 |
As a result of recent financial performance and macroeconomic conditions including inflation and higher interest rates, the Company initiated a process to evaluate its current business model and long-term business strategy. It was determined during the third quarter of 2022 that an indication of impairment existed for the QxH reporting unit related to its tradenames and goodwill. With the assistance of a third party specialist, the fair value of the tradenames was determined using the relief from royalty method, primarily using a discounted cash flow model using projections of future operating performance (income approach) and applying a royalty rate (market approach) (Level 3), and an impairment in the amount of $180 million related to the HSN Tradename was recorded during the third quarter of 2022, in impairment losses in the consolidated statements of operations. Accumulated tradename impairment loss as of September 30, 2022 is $357 million. With the assistance of a third party specialist, the fair value of the QxH reporting unit was determined using a discounted cash flow method (Level 3), and a goodwill impairment in the amount of $2,420 million was recorded during the third quarter of 2022, in impairment losses in the consolidated statements of operations. Accumulated goodwill impairment loss as of September 30, 2022 is $2,420 million. Based on the quantitative assessment performed during the third quarter and the resulting impairment losses recorded, the estimated fair values of the HSN tradename and the QxH reporting unit equal their carrying values as of September 30, 2022. Other intangible assets consisted of the following:
| September 30, 2022 | December 31, 2021
(in millions) | Gross cost | Accumulated amortization | Other intangible assets, net | Gross cost | Accumulated amortization | Other intangible assets, net
Purchased and internally developed software | $ | 1,014 |  | (730) |  | 284 |  | 945 |  | (659) |  | 286 |
Affiliate and customer relationships | 2,802 |  | (2,603) |  | 199 |  | 2,832 |  | (2,598) |  | 234 |
Debt origination fees | 9 |  | (2) |  | 7 |  | 9 |  | — |  | 9 |
Trademarks (indefinite life) | 2,698 |  | — |  | 2,698 |  | 2,878 |  | — |  | 2,878 |
| $ | 6,523 |  | (3,335) |  | 3,188 |  | 6,664 |  | (3,257) |  | 3,407 |
The Company recorded amortization expense of $44 million and $42 million for the three months ended September 30, 2022 and 2021, respectively, related to other intangible assets. For the nine months ended September 30, 2022 and 2021, amortization expense for other intangible assets was $129 million and $120 million, respectively. As of September 30, 2022, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions):
Remainder of 2022 | $ | 50 |
2023 | 181 |
2024 | 136 |
2025 | 75 |
2026 | 48 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration