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Information about QVC's Operating Segments | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Segment reporting disclosure | Information about QVC's Operating Segments The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA (defined below), gross margin, average sales price per unit, number of units shipped and revenue or sales per customer. For segment reporting purposes, the Company defines Adjusted OIBDA, as net revenue less cost of goods sold (excluding Fire related costs, net of recoveries and Rocky Mount inventory losses, see note 13), operating expenses, and selling, general and administrative expenses (excluding 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, impairment losses, Gains on sales of fixed assets, Fire related costs, net of recoveries and Rocky Mount inventory losses and stock-based compensation 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 QVC's Chief Executive Officer. QVC's CODM 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. For the three and nine months ended September 30, 2022 and 2021, QVC 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. Performance measures
| Three months ended September 30, | Nine months ended September 30,
| 2022 | 2021 | 2022 | 2021
(in millions) | Net revenue | Adjusted OIBDA | Net revenue | Adjusted OIBDA | Net revenue | Adjusted OIBDA | Net revenue | Adjusted OIBDA
QxH | $ | 1,663 |  | 143 |  | 1,813 |  | 325 |  | 5,101 |  | 600 |  | 5,738 |  | 1,065 |
QVC-International | 554 |  | 62 |  | 699 |  | 115 |  | 1,862 |  | 261 |  | 2,264 |  | 402 |
Consolidated QVC | $ | 2,217 |  | 205 |  | 2,512 |  | 440 |  | 6,963 |  | 861 |  | 8,002 |  | 1,467 |
Other information
| Three months ended September 30, | Nine months ended September 30,
| 2022 | 2021 | 2022 | 2021
(in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization
QxH | $ | 17 |  | 70 |  | 24 |  | 70 |  | 62 |  | 207 |  | 74 |  | 190 |
QVC-International | 4 |  | 3 |  | 13 |  | 4 |  | 26 |  | 10 |  | 41 |  | 10 |
Consolidated QVC | $ | 21 |  | 73 |  | 37 |  | 74 |  | 88 |  | 217 |  | 115 |  | 200 |
| September 30, 2022
(in millions) | Total assets | Capital expenditures | Property and equipment, net
QxH | $ | 10,675 |  | 116 |  | 272 |
QVC-International | 1,767 |  | 19 |  | 232 |
Consolidated QVC | $ | 12,442 |  | 135 |  | 504 |
The following table provides a reconciliation of Adjusted OIBDA to operating income and income before income taxes:
| Three months ended September 30, | Nine months ended September 30,
(in millions) | 2022 | 2021 | 2022 | 2021
Adjusted OIBDA | $ | 205 |  | 440 |  | 861 |  | 1,467 |
Gains on sales of fixed assets | 277 |  | — |  | 520 |  | — |
Fire related costs, net of recoveries and Rocky Mount inventory losses (see note 13) | 137 |  | — |  | 39 |  | — |
Impairment losses | (2,600) |  | — |  | (2,600) |  | — |
Stock-based compensation | (9) |  | (13) |  | (27) |  | (33) |
Depreciation and amortization | (94) |  | (111) |  | (305) |  | (315) |
Operating (loss) income | (2,084) |  | 316 |  | (1,512) |  | 1,119 |
Equity in losses of investee | — |  | (2) |  | — |  | (2) |
(Losses) gains on financial instruments | — |  | (5) |  | 1 |  | (8) |
Interest expense, net | (50) |  | (64) |  | (175) |  | (192) |
Foreign currency gain (loss) | 21 |  | — |  | 50 |  | (4) |
Loss on extinguishment of debt | — |  | — |  | (6) |  | — |
Other income | — |  | — |  | 20 |  | 8 |
(Loss) income before income taxes | $ | (2,113) |  | 245 |  | (1,622) |  | 921 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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