http://fasb.org/us-gaap/2022#RetailMemberhttp://fasb.org/us-gaap/2022#RetailMemberhttp://fasb.org/us-gaap/2022#RetailMemberhttp://fasb.org/us-gaap/2022#RetailMemberhttp://fasb.org/us-gaap/2022#RetailMemberhttp://fasb.org/us-gaap/2022#RetailMemberhttp://fasb.org/us-gaap/2022#OtherAssetsCurrent0001355096--12-312022Q337113268437383346983735128163190http://fasb.org/us-gaap/2022#RetailMemberhttp://fasb.org/us-gaap/2022#RetailMemberhttp://fasb.org/us-gaap/2022#OtherAssetsCurrent12671984http://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrentfalse0001355096qrtea:QvcMemberus-gaap:NaturalDisastersAndOtherCasualtyEventsMember2021-01-012021-12-310001355096us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-09-300001355096us-gaap:RetainedEarningsMember2022-09-300001355096us-gaap:NoncontrollingInterestMember2022-09-300001355096us-gaap:AdditionalPaidInCapitalMember2022-09-300001355096us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001355096us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-06-300001355096us-gaap:RetainedEarningsMember2022-06-300001355096us-gaap:NoncontrollingInterestMember2022-06-300001355096us-gaap:AdditionalPaidInCapitalMember2022-06-300001355096us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000013550962022-06-300001355096us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-12-310001355096us-gaap:RetainedEarningsMember2021-12-310001355096us-gaap:NoncontrollingInterestMember2021-12-310001355096us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001355096us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-09-300001355096us-gaap:RetainedEarningsMember2021-09-300001355096us-gaap:NoncontrollingInterestMember2021-09-300001355096us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001355096us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-06-300001355096us-gaap:RetainedEarningsMember2021-06-300001355096us-gaap:NoncontrollingInterestMember2021-06-300001355096us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000013550962021-06-300001355096us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-12-310001355096us-gaap:RetainedEarningsMember2020-12-310001355096us-gaap:NoncontrollingInterestMember2020-12-310001355096us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001355096us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassBMember2022-09-300001355096us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2022-09-300001355096us-gaap:RestrictedStockUnitsRSUMemberqrtea:SeriesaCumulativeRedeemablePreferredStock8PercentMember2022-09-300001355096us-gaap:RestrictedStockMemberus-gaap:CommonClassBMember2022-09-300001355096qrtea:RestrictedStockRsaAndRestrictedStockUnitsRsusMemberqrtea:SeriesaCumulativeRedeemablePreferredStock8PercentMember2022-09-300001355096us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2021-12-310001355096us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassBMember2022-01-012022-09-300001355096us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2022-01-012022-09-300001355096qrtea:QurateRetailSubsidiaryEmployeesMemberus-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2022-01-012022-09-300001355096qrtea:QurateRetailPresidentAndCeoMemberus-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2022-01-012022-09-300001355096qrtea:QurateRetailEmployeesAndDirectorsMemberus-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2022-01-012022-09-300001355096qrtea:QurateRetailChairmanOfBoardMemberus-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassBMember2022-01-012022-09-300001355096qrtea:QvcMember2022-07-012022-09-300001355096qrtea:QvcMemberqrtea:NewLeaseMember2022-04-012022-06-300001355096qrtea:QvcMember2022-01-012022-09-300001355096qrtea:QvcMemberqrtea:NewLeaseMember2022-01-012022-06-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:ZulilyMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:QxhMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:QvcInternationalMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:ZulilyMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:QxhMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:QvcInternationalMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:ZulilyMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:QxhMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:QvcInternationalMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:ZulilyMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:QxhMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:QvcInternationalMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:ZulilyMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:QxhMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:QvcInternationalMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:ZulilyMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:QxhMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:QvcInternationalMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:ZulilyMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:QxhMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:QvcInternationalMember2022-07-012022-09-300001355096us-gaap:CorporateNonSegmentMemberqrtea:HomeMember2022-07-012022-09-300001355096us-gaap:CorporateNonSegmentMemberqrtea:ApparelMember2022-07-012022-09-300001355096us-gaap:ManufacturedProductOtherMember2022-07-012022-09-300001355096qrtea:JewelryMember2022-07-012022-09-300001355096qrtea:HomeMember2022-07-012022-09-300001355096qrtea:ElectronicsMember2022-07-012022-09-300001355096qrtea:BeautyMember2022-07-012022-09-300001355096qrtea:ApparelMember2022-07-012022-09-300001355096qrtea:AccessoriesMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:ZulilyMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:QxhMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:QvcInternationalMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:ZulilyMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:QxhMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:QvcInternationalMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:ZulilyMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:QxhMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:QvcInternationalMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:ZulilyMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:QxhMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:QvcInternationalMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:ZulilyMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:QxhMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:QvcInternationalMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:ZulilyMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:QxhMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:QvcInternationalMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:ZulilyMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:QxhMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:QvcInternationalMember2022-01-012022-09-300001355096us-gaap:CorporateNonSegmentMemberqrtea:HomeMember2022-01-012022-09-300001355096us-gaap:CorporateNonSegmentMemberqrtea:ApparelMember2022-01-012022-09-300001355096us-gaap:ManufacturedProductOtherMember2022-01-012022-09-300001355096qrtea:JewelryMember2022-01-012022-09-300001355096qrtea:HomeMember2022-01-012022-09-300001355096qrtea:ElectronicsMember2022-01-012022-09-300001355096qrtea:BeautyMember2022-01-012022-09-300001355096qrtea:ApparelMember2022-01-012022-09-300001355096qrtea:AccessoriesMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:ZulilyMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:QxhMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:QvcInternationalMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:ZulilyMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:QxhMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:QvcInternationalMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:ZulilyMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:QxhMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:QvcInternationalMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:ZulilyMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:QxhMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:QvcInternationalMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:ZulilyMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:QxhMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:QvcInternationalMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:ZulilyMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:QxhMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:QvcInternationalMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:ZulilyMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:QxhMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:QvcInternationalMember2021-07-012021-09-300001355096us-gaap:CorporateNonSegmentMemberqrtea:HomeMember2021-07-012021-09-300001355096us-gaap:CorporateNonSegmentMemberqrtea:ApparelMember2021-07-012021-09-300001355096us-gaap:ManufacturedProductOtherMember2021-07-012021-09-300001355096qrtea:JewelryMember2021-07-012021-09-300001355096qrtea:HomeMember2021-07-012021-09-300001355096qrtea:ElectronicsMember2021-07-012021-09-300001355096qrtea:BeautyMember2021-07-012021-09-300001355096qrtea:ApparelMember2021-07-012021-09-300001355096qrtea:AccessoriesMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:ZulilyMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:QxhMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberus-gaap:ManufacturedProductOtherMemberqrtea:QvcInternationalMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:ZulilyMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:QxhMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:JewelryMemberqrtea:QvcInternationalMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:ZulilyMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:QxhMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:HomeMemberqrtea:QvcInternationalMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:ZulilyMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:QxhMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ElectronicsMemberqrtea:QvcInternationalMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:ZulilyMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:QxhMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:BeautyMemberqrtea:QvcInternationalMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:ZulilyMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:QxhMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ApparelMemberqrtea:QvcInternationalMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:ZulilyMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:QxhMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:AccessoriesMemberqrtea:QvcInternationalMember2021-01-012021-09-300001355096us-gaap:CorporateNonSegmentMemberqrtea:HomeMember2021-01-012021-09-300001355096us-gaap:CorporateNonSegmentMemberqrtea:ApparelMember2021-01-012021-09-300001355096us-gaap:ManufacturedProductOtherMember2021-01-012021-09-300001355096qrtea:JewelryMember2021-01-012021-09-300001355096qrtea:HomeMember2021-01-012021-09-300001355096qrtea:ElectronicsMember2021-01-012021-09-300001355096qrtea:BeautyMember2021-01-012021-09-300001355096qrtea:ApparelMember2021-01-012021-09-300001355096qrtea:AccessoriesMember2021-01-012021-09-300001355096qrtea:ZulilyMemberus-gaap:FacilityClosingMember2022-07-012022-09-300001355096qrtea:ZulilyMemberus-gaap:FacilityClosingMember2022-01-012022-09-300001355096qrtea:QvcMemberqrtea:Qvc4375SeniorSecuredNotesDue2023Member2022-06-012022-06-300001355096qrtea:LibertyMediaCorporationAndLibertyBroadbandCorporationMember2022-09-300001355096qrtea:LibertyMediaCorporationAndLibertyBroadbandCorporationMember2021-12-310001355096qrtea:LibertyMediaCorporationMember2022-07-012022-09-300001355096qrtea:LibertyMediaCorporationMember2022-01-012022-09-300001355096qrtea:LibertyMediaCorporationMember2021-07-012021-09-300001355096qrtea:LibertyMediaCorporationMember2021-01-012021-09-300001355096us-gaap:RetainedEarningsMember2022-07-012022-09-300001355096us-gaap:RetainedEarningsMember2022-01-012022-09-300001355096qrtea:QvcMemberqrtea:UnitedKingdomFacilityMember2022-11-032022-11-030001355096qrtea:QvcMemberqrtea:GermanFacilityMember2022-11-022022-11-020001355096us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001355096us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001355096us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001355096us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001355096qrtea:QvcMemberqrtea:NewLeaseMember2022-09-300001355096us-gaap:NoncontrollingInterestMember2022-07-012022-09-300001355096us-gaap:NoncontrollingInterestMember2022-01-012022-09-300001355096us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001355096us-gaap:NoncontrollingInterestMember2021-01-012021-09-300001355096qrtea:QvcMemberqrtea:QvcSeniorSecuredCreditFacilityMember2021-12-310001355096qrtea:QvcMemberqrtea:Qvc6375SeniorSecuredNotesDue2067Member2021-12-310001355096qrtea:QvcMemberqrtea:Qvc6.25SeniorSecuredNotesDue2068Member2021-12-310001355096qrtea:QvcMemberqrtea:Qvc595SeniorSecuredNotesDue2043Member2021-12-310001355096qrtea:QvcMemberqrtea:Qvc5.45SeniorSecuredNotesDue2034Member2021-12-310001355096qrtea:QvcMemberqrtea:Qvc4375SeniorSecuredNotesDue2023Member2021-12-310001355096qrtea:QvcMemberqrtea:Qvc4.85SeniorSecuredNotesDue2024Member2021-12-310001355096qrtea:QvcMemberqrtea:Qvc4.75SeniorSecuredNotesDue2027Member2021-12-310001355096qrtea:QvcMemberqrtea:Qvc4.45SeniorSecuredNotesDue2025Member2021-12-310001355096qrtea:QvcMemberqrtea:Qvc4.375SeniorSecuredNotesDue2028Member2021-12-310001355096qrtea:A85SeniorDebenturesDue2029Member2021-12-310001355096qrtea:A825SeniorDebenturesDue2030Member2021-12-310001355096qrtea:A4ExchangeableSeniorDebenturesDue2029Member2021-12-310001355096qrtea:A375ExchangeableSeniorDebenturesDue2030Member2021-12-310001355096qrtea:A1.75ExchangeableSeniorDebenturesDue2046Member2021-12-310001355096us-gaap:LetterOfCreditMemberqrtea:AmendmentNo.5QvcBankCreditFacilityMember2021-10-270001355096qrtea:PortionOfCreditFacilityAvailableToQvcAndZulilyMemberqrtea:AmendmentNo.5QvcBankCreditFacilityMember2021-10-270001355096qrtea:QvcMember2022-11-020001355096qrtea:QvcMember2022-07-310001355096qrtea:QvcMemberus-gaap:NaturalDisastersAndOtherCasualtyEventsMember2022-09-300001355096qrtea:ZulilyMember2022-07-012022-09-300001355096qrtea:QxhMember2022-07-012022-09-300001355096qrtea:ZulilyMember2022-01-012022-09-300001355096qrtea:QxhMember2022-01-012022-09-300001355096qrtea:QvcInternationalMember2022-01-012022-09-300001355096qrtea:ZulilyMember2022-09-300001355096qrtea:QxhMember2022-09-300001355096qrtea:QvcInternationalMember2022-09-300001355096us-gaap:CorporateNonSegmentMember2021-12-310001355096qrtea:ZulilyMember2021-12-310001355096qrtea:QxhMember2021-12-310001355096qrtea:QvcInternationalMember2021-12-310001355096qrtea:QvcMemberqrtea:Qvc4375SeniorSecuredNotesDue2023Member2022-01-012022-09-300001355096us-gaap:ConvertibleDebtSecuritiesMember2022-07-012022-09-300001355096qrtea:IndemnificationAssetsMember2022-07-012022-09-300001355096us-gaap:EquitySecuritiesMember2022-01-012022-09-300001355096us-gaap:ConvertibleDebtSecuritiesMember2022-01-012022-09-300001355096qrtea:OtherFinancialInstrumentsMember2022-01-012022-09-300001355096qrtea:IndemnificationAssetsMember2022-01-012022-09-300001355096us-gaap:EquitySecuritiesMember2021-07-012021-09-300001355096us-gaap:ConvertibleDebtSecuritiesMember2021-07-012021-09-300001355096qrtea:OtherFinancialInstrumentsMember2021-07-012021-09-300001355096qrtea:IndemnificationAssetsMember2021-07-012021-09-300001355096us-gaap:EquitySecuritiesMember2021-01-012021-09-300001355096us-gaap:ConvertibleDebtSecuritiesMember2021-01-012021-09-300001355096qrtea:OtherFinancialInstrumentsMember2021-01-012021-09-300001355096qrtea:IndemnificationAssetsMember2021-01-012021-09-300001355096qrtea:QvcMemberus-gaap:NaturalDisastersAndOtherCasualtyEventsMember2021-12-310001355096srt:RestatementAdjustmentMemberqrtea:RevisionForWriteOffOfFixedAssetsDisposedMember2022-09-300001355096qrtea:QvcMemberqrtea:AmendmentNo.5QvcBankCreditFacilityMember2022-09-300001355096qrtea:QvcMemberqrtea:Qvc4375SeniorSecuredNotesDue2023Member2022-06-300001355096qrtea:QvcMemberqrtea:NewLeaseMember2022-01-012022-09-300001355096qrtea:QvcMemberqrtea:QvcSeniorSecuredCreditFacilityMember2022-09-300001355096qrtea:QvcMemberqrtea:Qvc6375SeniorSecuredNotesDue2067Member2022-09-300001355096qrtea:QvcMemberqrtea:Qvc6.25SeniorSecuredNotesDue2068Member2022-09-300001355096qrtea:QvcMemberqrtea:Qvc595SeniorSecuredNotesDue2043Member2022-09-300001355096qrtea:QvcMemberqrtea:Qvc5.45SeniorSecuredNotesDue2034Member2022-09-300001355096qrtea:QvcMemberqrtea:Qvc4375SeniorSecuredNotesDue2023Member2022-09-300001355096qrtea:QvcMemberqrtea:Qvc4.85SeniorSecuredNotesDue2024Member2022-09-300001355096qrtea:QvcMemberqrtea:Qvc4.75SeniorSecuredNotesDue2027Member2022-09-300001355096qrtea:QvcMemberqrtea:Qvc4.45SeniorSecuredNotesDue2025Member2022-09-300001355096qrtea:QvcMemberqrtea:Qvc4.375SeniorSecuredNotesDue2028Member2022-09-300001355096qrtea:A85SeniorDebenturesDue2029Member2022-09-300001355096qrtea:A825SeniorDebenturesDue2030Member2022-09-300001355096qrtea:A4ExchangeableSeniorDebenturesDue2029Member2022-09-300001355096qrtea:A375ExchangeableSeniorDebenturesDue2030Member2022-09-300001355096qrtea:A1.75ExchangeableSeniorDebenturesDue2046Member2022-09-300001355096srt:MinimumMemberqrtea:PortionOfCreditFacilityAvailableToQvcAndZulilyMemberqrtea:AmendmentNo.5QvcBankCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-10-272021-10-270001355096srt:MinimumMemberqrtea:PortionOfCreditFacilityAvailableToQvcAndZulilyMemberqrtea:AmendmentNo.5QvcBankCreditFacilityMemberqrtea:AlternateBaseRateMember2021-10-272021-10-270001355096srt:MaximumMemberqrtea:PortionOfCreditFacilityAvailableToQvcAndZulilyMemberqrtea:AmendmentNo.5QvcBankCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-10-272021-10-270001355096srt:MaximumMemberqrtea:PortionOfCreditFacilityAvailableToQvcAndZulilyMemberqrtea:AmendmentNo.5QvcBankCreditFacilityMemberqrtea:AlternateBaseRateMember2021-10-272021-10-270001355096us-gaap:CommonClassCMember2022-09-300001355096us-gaap:CommonClassCMember2021-12-310001355096us-gaap:CommonClassBMember2021-12-310001355096us-gaap:CommonClassAMember2021-12-310001355096us-gaap:CommonClassBMember2022-09-300001355096us-gaap:CommonClassAMember2022-09-3000013550962021-09-3000013550962020-12-310001355096us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001355096us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001355096us-gaap:OperatingSegmentsMemberqrtea:ZulilyMember2022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:QxhMember2022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:QvcInternationalMember2022-09-300001355096us-gaap:CorporateNonSegmentMember2022-09-300001355096qrtea:SeriesaCumulativeRedeemablePreferredStock8PercentMember2022-09-300001355096qrtea:TemporaryEquityRedemptionOnOrAfterSixthButPriorToSeventhAnniversaryMemberqrtea:SeriesaCumulativeRedeemablePreferredStock8PercentMember2020-09-142020-09-140001355096qrtea:TemporaryEquityRedemptionOnOrAfterSeventhAnniversaryMemberqrtea:SeriesaCumulativeRedeemablePreferredStock8PercentMember2020-09-142020-09-140001355096qrtea:TemporaryEquityRedemptionOnOrAfterFifthButPriorToSixthAnniversaryMemberqrtea:SeriesaCumulativeRedeemablePreferredStock8PercentMember2020-09-142020-09-140001355096qrtea:SeriesaCumulativeRedeemablePreferredStock8PercentMember2020-09-142020-09-140001355096qrtea:SeriesaCumulativeRedeemablePreferredStock8PercentMember2020-09-140001355096us-gaap:RestrictedStockUnitsRSUMemberqrtea:SeriesaCumulativeRedeemablePreferredStock8PercentMember2022-01-012022-09-300001355096qrtea:QvcMemberus-gaap:NaturalDisastersAndOtherCasualtyEventsMember2022-01-012022-09-300001355096qrtea:QvcMember2022-11-022022-11-020001355096qrtea:QvcMember2022-07-012022-07-310001355096us-gaap:LetterOfCreditMemberqrtea:AmendmentNo.5QvcBankCreditFacilityMember2021-10-272021-10-2700013550962022-09-3000013550962021-12-310001355096qrtea:SeniorDebenturesMember2022-09-300001355096qrtea:QvcSeniorSecuredNotesMember2022-09-300001355096us-gaap:RestrictedStockUnitsRSUMemberqrtea:MaffeiStockExchangeAgreementMemberus-gaap:CommonClassAMember2021-06-032021-06-030001355096srt:ChiefExecutiveOfficerMemberqrtea:LibertyMediaCorporationMember2022-01-012022-09-300001355096us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001355096us-gaap:FairValueMeasurementsRecurringMember2022-09-300001355096us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001355096us-gaap:FairValueMeasurementsRecurringMember2021-12-310001355096us-gaap:RetainedEarningsMember2021-07-012021-09-300001355096us-gaap:RetainedEarningsMember2021-01-012021-09-300001355096us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001355096us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001355096us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001355096us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ZulilyMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:QxhMember2022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:QvcInternationalMember2022-07-012022-09-300001355096us-gaap:CorporateNonSegmentMember2022-07-012022-09-3000013550962022-07-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ZulilyMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:QxhMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:QvcInternationalMember2022-01-012022-09-300001355096us-gaap:CorporateNonSegmentMember2022-01-012022-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ZulilyMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:QxhMember2021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:QvcInternationalMember2021-07-012021-09-300001355096us-gaap:CorporateNonSegmentMember2021-07-012021-09-3000013550962021-07-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:ZulilyMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:QxhMember2021-01-012021-09-300001355096us-gaap:OperatingSegmentsMemberqrtea:QvcInternationalMember2021-01-012021-09-300001355096us-gaap:CorporateNonSegmentMember2021-01-012021-09-3000013550962021-01-012021-09-300001355096us-gaap:CommonClassBMember2022-01-012022-09-300001355096us-gaap:CommonClassAMember2022-01-012022-09-300001355096qrtea:SeriesaCumulativeRedeemablePreferredStock8PercentMember2022-01-012022-09-300001355096us-gaap:CommonClassBMember2022-10-310001355096us-gaap:CommonClassAMember2022-10-3100013550962022-01-012022-09-30xbrli:sharesiso4217:USDxbrli:pureqrtea:itemqrtea:propertyiso4217:USDxbrli:sharesiso4217:EURiso4217:GBP

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                             to                             

Commission File Number 001-33982

QURATE RETAIL, INC.

(Exact name of Registrant as specified in its charter)


incorporation or organization)


Identification No.)

State of Delaware

(State or other jurisdiction of
incorporation or organization)

84-1288730

(I.R.S. Employer
Identification No.)

12300 Liberty Boulevard
Englewood, Colorado

(Address of principal executive offices)

80112

(Zip Code)

Registrant's telephone number, including area code: (720875-5300

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Series A common stock

QRTEA

The Nasdaq Stock Market LLC

Series B common stock

QRTEB

The Nasdaq Stock Market LLC

8.0% Series A Cumulative Redeemable Preferred Stock

QRTEP

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes    No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer 

Accelerated Filer 

Non-accelerated Filer 

Smaller Reporting Company 

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes     No 

The number of outstanding shares of Qurate Retail, Inc.'s common stock as of October 31, 2022 was:

Series A common stock

373,838,128

Series B common stock

8,373,512

Table of Contents

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

QURATE RETAIL, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (unaudited)

    

I-3

QURATE RETAIL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (unaudited)

I-5

QURATE RETAIL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Comprehensive Earnings (Loss) (unaudited)

I-6

QURATE RETAIL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (unaudited)

I-7

QURATE RETAIL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Equity (unaudited)

I-8

QURATE RETAIL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (unaudited)

I-10

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

I-25

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

I-38

Item 4. Controls and Procedures.

I-39

PART II—OTHER INFORMATION

II-1

Item 1. Legal Proceedings

II-1

Item 1A. Risk Factors

II-1

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

II-2

Item 6. Exhibits

II-3

SIGNATURES

II-4

I-2

Table of Contents

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(unaudited)

    

September 30,

    

December 31,

 

2022

2021

amounts in millions

Assets

Current assets:

Cash and cash equivalents

$

624

 

587

Trade and other receivables, net of allowance for credit losses of $107 million and $107 million, respectively

 

1,027

 

1,679

Inventory, net

 

1,737

 

1,623

Indemnification agreement receivable

324

Other current assets

 

189

 

235

Total current assets

 

3,577

 

4,448

Property and equipment, net

 

594

 

1,030

Intangible assets not subject to amortization (note 5):

Goodwill

 

3,430

 

6,339

Trademarks

 

2,718

 

3,038

 

6,148

 

9,377

Intangible assets subject to amortization, net (note 5)

 

645

 

745

Other assets, at cost, net of accumulated amortization

 

832

 

602

Total assets

$

11,796

 

16,202

(continued)

See accompanying notes to condensed consolidated financial statements.

I-3

Table of Contents

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Continued)

(unaudited)

September 30,

December 31,

 

2022

2021

 

amounts in millions,

 

except share amounts

 

Liabilities and Equity

    

    

    

    

Current liabilities:

Accounts payable

$

977

 

1,429

Accrued liabilities

 

940

 

1,236

Current portion of debt, $389 million and $1,315 million measured at fair value (note 6)

 

603

 

1,315

Other current liabilities

 

214

 

244

Total current liabilities

 

2,734

 

4,224

Long-term debt, $310 million and zero measured at fair value (note 6)

 

5,303

 

5,674

Deferred income tax liabilities

 

1,447

 

1,350

Preferred stock (note 7)

1,266

1,261

Other liabilities

 

698

 

707

Total liabilities

 

11,448

 

13,216

Equity

Stockholders' equity:

Series A common stock, $.01 par value. Authorized 4,000,000,000 shares; issued and outstanding 373,833,469 shares at September 30, 2022 and 371,132,684 shares at December 31, 2021

 

4

 

4

Series B common stock, $.01 par value. Authorized 150,000,000 shares; issued and outstanding 8,373,512 shares at September 30, 2022 and 8,163,190 shares at December 31, 2021

 

 

Series C common stock, $.01 par value. Authorized 400,000,000 shares; no shares issued

Additional paid-in capital

 

38

 

Accumulated other comprehensive earnings (loss), net of taxes

 

(194)

 

(79)

Retained earnings

 

387

 

2,925

Total stockholders' equity

 

235

 

2,850

Noncontrolling interests in equity of subsidiaries

 

113

 

136

Total equity

 

348

 

2,986

Commitments and contingencies (note 8)

Total liabilities and equity

$

11,796

 

16,202

See accompanying notes to condensed consolidated financial statements.

I-4

Table of Contents

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(unaudited)

Three months ended

Nine months ended

 

September 30,

September 30,

 

    

2022

    

2021

    

2022

    

2021

 

amounts in millions, except per share amounts

 

Total revenue, net

$

2,744

 

3,144

 

8,580

 

9,985

Operating costs and expenses:

Cost of goods sold (exclusive of depreciation shown separately below)

 

1,905

 

2,069

 

5,885

 

6,504

Operating expense

 

205

 

204

 

599

 

627

Selling, general and administrative, including stock-based compensation (note 2)

 

464

 

458

 

1,370

 

1,378

Restructuring and fire related costs, net of (recoveries) (note 8)

(134)

(123)

Depreciation and amortization

 

107

 

139

 

371

 

396

Impairment of intangible assets (note 5)

3,081

3,081

(Gains) losses on sales of fixed assets, net (note 8)

(277)

(520)

 

5,351

 

2,870

 

10,663

 

8,905

Operating income (loss)

 

(2,607)

 

274

 

(2,083)

 

1,080

Other income (expense):

Interest expense

 

(107)

 

(121)

 

(343)

 

(356)

Share of earnings (losses) of affiliates, net

 

 

(24)

 

(1)

 

(78)

Realized and unrealized gains (losses) on financial instruments, net (note 4)

 

(8)

 

41

 

29

 

101

Tax sharing income (expense) with Liberty Broadband

36

(3)

78

(16)

Other, net

 

37

 

3

 

83

 

6

 

(42)

 

(104)

 

(154)

 

(343)

Earnings (loss) before income taxes

 

(2,649)

 

170

 

(2,237)

 

737

Income tax (expense) benefit

 

(87)

 

(20)

 

(265)

 

(113)

Net earnings (loss)

(2,736)

150

(2,502)

624

Less net earnings (loss) attributable to the noncontrolling interests

 

11

 

23

 

41

 

69

Net earnings (loss) attributable to Qurate Retail, Inc. shareholders

$

(2,747)

 

127

(2,543)

 

555

Basic net earnings (loss) attributable to Series A and Series B Qurate Retail, Inc. shareholders per common share (note 3):

$

(7.21)

 

0.31

(6.69)

1.36

Diluted net earnings (loss) attributable to Series A and Series B Qurate Retail, Inc. shareholders per common share (note 3):

$

(7.21)

 

0.31

(6.69)

1.32

See accompanying notes to condensed consolidated financial statements.

I-5

Table of Contents

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Earnings (Loss)

(unaudited)

Three months ended

Nine months ended

 

September 30,

September 30,

 

    

2022

    

2021

    

2022

    

2021

 

amounts in millions

 

Net earnings (loss)

$

(2,736)

 

150

 

(2,502)

 

624

Other comprehensive earnings (loss), net of taxes:

Foreign currency translation adjustments

 

(127)

 

(28)

 

(330)

 

(92)

Recognition of previously unrealized losses (gains) on debt, net

(14)

(14)

Comprehensive earnings (loss) attributable to debt credit risk adjustments

30

(13)

204

(50)

Other comprehensive earnings (loss)

 

(111)

 

(41)

 

(140)

 

(142)

Comprehensive earnings (loss)

 

(2,847)

 

109

 

(2,642)

 

482

Less comprehensive earnings (loss) attributable to the noncontrolling interests

 

5

 

22

 

16

 

59

Comprehensive earnings (loss) attributable to Qurate Retail, Inc. shareholders

$

(2,852)

 

87

 

(2,658)

 

423

See accompanying notes to condensed consolidated financial statements.

I-6

Table of Contents

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(unaudited)

Nine months ended

 

September 30,

 

    

2022

    

2021

 

amounts in millions

 

Cash flows from operating activities:

Net earnings (loss)

$

(2,502)

 

624

Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:

Depreciation and amortization

 

371

 

396

Impairment of intangible assets

3,081

Stock-based compensation

 

46

 

54

Share of (earnings) losses of affiliates, net

 

1

 

78

Realized and unrealized (gains) losses on financial instruments, net

 

(29)

 

(101)

(Gains) losses on sales of fixed assets, net

(520)

Gain on insurance proceeds

(139)

Insurance proceeds received for operating losses

96

Deferred income tax expense (benefit)

 

45

 

(35)

Other, net

 

(68)

 

15

Changes in operating assets and liabilities

Decrease (increase) in accounts receivable

 

483

 

439

Decrease (increase) in inventory

(163)

(453)

Decrease (increase) in prepaid expenses and other assets

98

85

(Decrease) increase in trade accounts payable

(418)

(48)

(Decrease) increase in accrued and other liabilities

(419)

(339)

Net cash provided (used) by operating activities

 

(37)

 

715

Cash flows from investing activities:

Investments in and loans to cost and equity investees

 

(7)

 

(177)

Capital expenditures

 

(171)

 

(169)

Expenditures for television distribution rights

(36)

(184)

Cash proceeds from dispositions of investments

12

10

Proceeds from sale of fixed assets

701

40

Insurance proceeds

184

Other investing activities, net

21

(3)

Net cash provided (used) by investing activities

 

704

 

(483)

Cash flows from financing activities:

Borrowings of debt

 

2,069

 

394

Repayments of debt

 

(2,577)

 

(284)

Repurchases of Qurate Retail common stock

 

 

(216)

Withholding taxes on net settlements of stock-based compensation

 

(7)

 

(25)

Payments for issuances of financial instruments

(107)

Proceeds from settlements of financial instruments

88

Dividends paid to noncontrolling interest

 

(39)

 

(46)

Dividends paid to common shareholders

(11)

(14)

Other financing activities, net

(6)

(9)

Net cash provided (used) by financing activities

 

(571)

 

(219)

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

 

(59)

 

(20)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

37

 

(7)

Cash, cash equivalents and restricted cash at beginning of period

 

596

 

814

Cash, cash equivalents and restricted cash at end of period

$

633

 

807

The following table reconciles cash, cash equivalents and restricted cash reported in our condensed consolidated balance sheets to the total amount presented in our condensed consolidated statements of cash flows:

September 30,

December 31,

2022

2021

in millions

Cash and cash equivalents

$

624

587

Restricted cash included in other current assets

9

9

Total cash, cash equivalents and restricted cash in the condensed consolidated statement of cash flows

$

633

596

See accompanying notes to condensed consolidated financial statements.

I-7

Table of Contents

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Equity

(unaudited)

Stockholders' Equity

Accumulated

Additional

other

Noncontrolling

 

Preferred

Common stock

paid-in

comprehensive

Retained

interest in equity

Total

 

  

stock

  

Series A

  

Series B

  

capital

  

earnings (loss)

  

earnings

  

of subsidiaries

  

equity

 

amounts in millions

 

Balance at January 1, 2022

$

4

(79)

2,925

136

2,986

Net earnings (loss)

 

(2,543)

41

(2,502)

Other comprehensive earnings (loss)

 

(115)

(25)

(140)

Stock-based compensation

44

44

Distribution to noncontrolling interest

(39)

(39)

Withholding taxes on net share settlements of stock-based compensation

(7)

(7)

Other

1

5

6

Balance at September 30, 2022

$

4

38

(194)

387

113

348

Stockholders' Equity

Accumulated

Additional

other

Noncontrolling

Preferred

Common stock

paid-in

comprehensive

Retained

interest in equity

Total

  

stock

  

Series A

  

Series B

  

capital

  

earnings (loss)

  

earnings

  

of subsidiaries

  

equity

amounts in millions

Balance at June 30, 2022

$

4

23

(89)

3,134

119

3,191

Net earnings (loss)

 

(2,747)

11

(2,736)

Other comprehensive earnings (loss)

 

(105)

(6)

(111)

Stock-based compensation

14

14

Distribution to noncontrolling interest

(11)

(11)

Withholding taxes on net share settlements of stock-based compensation

1

1

Other

Balance at September 30, 2022

$

4

38

(194)

387

113

348

I-8

Table of Contents

Stockholders' Equity

Accumulated

Additional

other

Noncontrolling

Preferred

Common stock

paid-in

comprehensive

Retained

interest in equity

Total

  

stock

  

Series A

  

Series B

  

capital

  

earnings (loss)

  

earnings

  

of subsidiaries

  

equity

amounts in millions

Balance at January 1, 2021

$

4

72

3,478

135

3,689

Net earnings (loss)

 

555

69

624

Other comprehensive income (loss)

 

(132)

(10)

(142)

Stock-based compensation

51

51

Series A Qurate Retail stock repurchases

(239)

(239)

Distribution to noncontrolling interest

(46)

(46)

Withholding taxes on net share settlements of stock-based compensation

(25)

(25)

Other

(46)

4

(42)

Reclassification

259

(259)

Balance at September 30, 2021

$

 

4

 

 

 

(60)

 

3,778

 

148

 

3,870

Stockholders' Equity

Common stock

Accumulated

Qurate

Additional

other

Noncontrolling

Preferred

Retail

paid-in

comprehensive

Retained

interest in equity

Total

  

stock

  

Series A

  

Series B

  

capital

  

earnings (loss)

  

earnings

  

of subsidiaries

  

equity

amounts in millions

Balance at June 30, 2021

$

4

(20)

3,743

141

3,868

Net earnings (loss)

 

127

23

150

Other comprehensive income (loss)

 

(40)

(1)

(41)

Stock-based compensation

18

18

Series A Qurate Retail stock repurchases

(134)

(134)

Distribution to noncontrolling interest

(15)

(15)

Withholding taxes on net share settlements of stock-based compensation

(1)

(1)

Other

24

1

25

Reclassification

93

(93)

Balance at September 30, 2021

$

4

(60)

3,778

148

3,870

See accompanying notes to condensed consolidated financial statements.

I-9

Table of Contents

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(unaudited)

(1)   Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of Qurate Retail, Inc. and its controlled subsidiaries (collectively, "Qurate Retail," the "Company," “Consolidated Qurate Retail,” “us,” “we,” or “our” unless the context otherwise requires). All significant intercompany accounts and transactions have been eliminated in consolidation. Qurate Retail is made up of wholly-owned subsidiaries QVC, Inc. (“QVC”), which includes HSN, Inc. (“HSN”), Cornerstone Brands, Inc. (“Cornerstone”), Zulily, LLC (“Zulily”), and other cost and equity method investments.

Qurate Retail is primarily engaged in the video and online commerce industries in North America, Europe and Asia. The businesses of the Company’s wholly-owned subsidiaries, QVC, Cornerstone and Zulily, are seasonal due to a higher volume of sales in the fourth calendar quarter related to year-end holiday shopping.  

The accompanying (a) condensed consolidated balance sheet as of December 31, 2021, which has been derived from audited financial statements, and (b) the interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. Additionally, certain prior period amounts have been reclassified for comparability with current period presentation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in Qurate Retail's Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 10-K”).

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Qurate Retail considers (i) fair value measurements, (ii) accounting for income taxes, and (iii) estimates of retail-related adjustments and allowances to be its most significant estimates.    

In December 2019, a new coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China and has subsequently spread across the globe causing a global pandemic, impacting all countries where Qurate Retail operates. As a result of the spread of COVID-19, certain local governmental agencies have imposed travel restrictions, local quarantines or stay at home restrictions to contain the spread, which has caused a significant disruption to most sectors of the economy.

Management is not presently aware of any events or circumstances arising from COVID-19 that would require the Company to update the estimates, judgments or revise the carrying value of our assets or liabilities. Management's estimates may change, however, as new events occur and additional information is obtained, and any such changes will be recognized in the consolidated financial statements. Actual results could differ from estimates, and any such differences may be material to our financial statements.

Qurate Retail has entered into certain agreements with Liberty Media Corporation ("LMC") (for accounting purposes, a related party of the Company), a separate publicly traded company. These agreements include a reorganization agreement, services agreement and facilities sharing agreement.  As a result of certain corporate transactions, LMC and Qurate Retail may have obligations to each other for certain tax related matters. Neither Qurate Retail nor LMC has any stock ownership, beneficial or otherwise, in the other. In connection with a split-off transaction that occurred in the first quarter of 2018 (the “GCI Liberty Split-Off”), Qurate Retail and GCI Liberty, Inc. (“GCI Liberty”) entered into a tax sharing agreement. Pursuant to the tax sharing agreement, GCI Liberty agreed to indemnify Qurate Retail for taxes and tax-related losses resulting from the GCI Liberty Split-Off to the extent such taxes or tax-related losses (i) result primarily from, individually or in the aggregate, the breach of certain restrictive covenants made by GCI Liberty (applicable to actions or failures to act by GCI Liberty and its subsidiaries following the completion of the GCI Liberty Split-Off), or (ii) result from Section 355(e) of the Internal Revenue Code applying to the GCI Liberty Split-Off as a result of the GCI Liberty Split-Off being part of a plan (or series of related transactions) pursuant to which one or more persons acquire, directly or indirectly, a 50-

I-10

Table of Contents

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

percent or greater interest (measured by vote or value) in the stock of GCI Liberty (or any successor corporation). Following a merger between Liberty Broadband Corporation (“Liberty Broadband”) and GCI Liberty, Liberty Broadband (for accounting purposes, a related party of the Company) has assumed the tax sharing agreement.

In December 2019, the Company entered into an amendment to the services agreement in connection with LMC’s entry into a new employment arrangement with Gregory B. Maffei, the Company’s Chairman of the Board (the “Chairman” or “Mr. Maffei”). Under the amended services agreement, components of his compensation will either be paid directly to him by each of the Company, Liberty TripAdvisor Holdings, Inc., and Liberty Broadband (collectively, the “Service Companies”) or reimbursed to LMC, in each case, based on allocations among LMC and the Service Companies set forth in the amended services agreement, currently set at 13% for the Company. 

The reorganization agreement with LMC provides for, among other things, provisions governing the relationship between Qurate Retail and LMC, including certain cross-indemnities. Pursuant to the services agreement, LMC provides Qurate Retail with certain general and administrative services including legal, tax, accounting, treasury and investor relations support. Qurate Retail reimburses LMC for direct, out-of-pocket expenses incurred by LMC in providing these services and for Qurate Retail's allocable portion of costs associated with any shared services or personnel based on an estimated percentage of time spent providing services to Qurate Retail. Under the facilities sharing agreement, LMC shares office space and related amenities at its corporate headquarters with Qurate Retail. Under these various agreements, approximately $1 million and $2 million was reimbursable to LMC for the three months ended September 30, 2022 and 2021, respectively, and $6 million and $