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Information about QVC's Operating Segments | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment reporting disclosure | Information about QVC's Operating Segments and Geographical Data 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 17), operating expenses, and selling, general and administrative expenses (excluding stock-based compensation, penalties and restructuring costs). 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 sale of assets and sale-leaseback transactions, restructuring, penalties and fire related costs, net of recoveries, 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 the Company's Chief Executive Officer who 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 (see below). For the year ended December 31, 2024, QVC has 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. QVC allocates certain corporate costs for management reporting purposes from its QxH segment to the QVC-International segment. These management cost allocations are related to certain functions such as merchandising, commerce platforms, information technology, human resources, legal, finance, brand and communications, corporate development and administration that support all of QVC’s operations. For the years ended December 31, 2024, 2023 and 2022, the costs allocated to QVC-International totaled $45 million, $49 million and $46 million, respectively. Performance measures
| Year ended December 31, 2024
(in millions) | QxH | QVC-International | Consolidated QVC
Net revenue | $ | 6,598 |  | 2,399 |  | 8,997 |
Cost of goods sold (exclusive of depreciation and amortization) | 4,373 |  | 1,532 |  | 5,905 |
Segment gross profit | 2,225 |  | 867 |  | 3,092 |
Operating | 512 |  | 181 |  | 693 |
Advertising | 277 |  | 35 |  | 312 |
Selling, general and administrative, excluding stock-based compensation and advertising | 671 |  | 318 |  | 989 |
Adjusted OIBDA | $ | 765 |  | 333 |  | 1,098 |
| Year ended December 31, 2023
(in millions) | QxH | QVC-International | Total |
Net revenue | $ | 6,995 |  | 2,454 |  | 9,449 |  |
Cost of goods sold (exclusive of depreciation and amortization) | 4,711 |  | 1,562 |  | 6,273 |  |
Segment gross profit | 2,284 |  | 892 |  | 3,176 |  |
Operating | 549 |  | 190 |  | 739 |  |
Advertising | 251 |  | 38 |  | 289 |  |
Selling, general and administrative, excluding stock-based compensation and advertising | 738 |  | 339 |  | 1,077 |  |
Adjusted OIBDA | $ | 746 |  | 325 |  | 1,071 |  |
| Year ended December 31, 2022
(in millions) | QxH | QVC-International | Total
Net revenue | $ | 7,359 |  | 2,528 |  | 9,887 |
Cost of goods sold (exclusive of depreciation, amortization and Rocky Mount inventory losses) | 5,131 |  | 1,620 |  | 6,751 |
Segment gross profit | 2,228 |  | 908 |  | 3,136 |
Operating | 562 |  | 198 |  | 760 |
Advertising | 259 |  | 39 |  | 298 |
Selling, general and administrative, excluding stock-based compensation and advertising | 657 |  | 313 |  | 970 |
Adjusted OIBDA | $ | 750 |  | 358 |  | 1,108 |
Other information
| Years ended December 31,
| 2024 | 2023 | 2022
(in millions) | Depreciation | Amortization | Depreciation | Amortization | Depreciation | Amortization
QxH | $ | 51 |  | 252 |  | 59 |  | 265 |  | 77 |  | 277 |
QVC-International | 26 |  | 22 |  | 31 |  | 17 |  | 34 |  | 13 |
Consolidated QVC | $ | 77 |  | 274 |  | 90 |  | 282 |  | 111 |  | 290 |
| Years ended December 31,
| 2024 | 2023
(in millions) | Total assets | Capital expenditures | Total assets | Capital expenditures
QxH | $ | 8,128 |  | 122 |  | 9,828 |  | 128 |
QVC-International | 1,761 |  | 51 |  | 1,892 |  | 54 |
Consolidated QVC | $ | 9,889 |  | 173 |  | 11,720 |  | 182 |
Property and equipment, net of accumulated depreciation, by segment was as follows:
| December 31,
(in millions) | 2024 | 2023
QxH | $ | 259 |  | 263 |
QVC-International | 151 |  | 164 |
Consolidated QVC | $ | 410 |  | 427 |
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes:
| Years ended December 31,
(in millions) | 2024 | 2023 | 2022 |
Adjusted OIBDA | $ | 1,098 |  | 1,071 |  | 1,108 |  |
Gains on sales of assets and sale leaseback transactions | 1 |  | 113 |  | 520 |  |
Restructuring, penalties and fire related (costs), net of recoveries (including Rocky Mount inventory losses) | (18) |  | 196 |  | 10 |  |
Impairment losses | (1,480) |  | (326) |  | (2,600) |  |
Stock-based compensation | (20) |  | (37) |  | (36) |  |
Depreciation and amortization | (351) |  | (372) |  | (401) |  |
Operating (loss) income | (770) |  | 645 |  | (1,399) |  |
Losses on financial instruments | — |  | (1) |  | (9) |  |
Interest expense, net | (251) |  | (228) |  | (228) |  |
Foreign currency gain (loss) | 9 |  | (10) |  | 32 |  |
Gain (loss) on extinguishment of debt | — |  | 10 |  | (6) |  |
Other (loss) income | (7) |  | — |  | 20 |  |
(Loss) income before income taxes | $ | (1,019) |  | 416 |  | (1,590) |  |
The following table summarizes net revenues based on revenues generated by subsidiaries located within the identified geographic area:
| Years ended December 31,
(in millions) | 2024 | 2023 | 2022
United States | $ | 6,598 |  | 6,995 |  | 7,359 |
Japan | 870 |  | 945 |  | 1,017 |
Germany | 785 |  | 788 |  | 813 |
United Kingdom | 629 |  | 594 |  | 565 |
Other countries | 115 |  | 127 |  | 133 |
Consolidated QVC | $ | 8,997 |  | 9,449 |  | 9,887 |
The following table summarizes property and equipment, net of accumulated depreciation, based on physical location:
| December 31,
(in millions) | 2024 | 2023
United States | $ | 259 |  | 263 |
Japan | 81 |  | 91 |
Other countries | 70 |  | 73 |
Consolidated QVC | $ | 410 |  | 427 |

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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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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