Quarterly report pursuant to Section 13 or 15(d)

Revenue (Notes)

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Revenue (Notes)
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block] Revenue
Disaggregated revenue by segment and product category consisted of the following:
Three months ended June 30, 2020 Six months ended June 30, 2020
(in millions) QxH QVC-International Total QxH QVC-International Total
Home $ 803    286    1,089    1,484    543    2,027   
Beauty 325    186    511    613    331    944   
Apparel 302    100    402    601    201    802   
Accessories 245    63    308    457    121    578   
Electronics 217    31    248    391    53    444   
Jewelry 82    47    129    180    96    276   
Other revenue 36    —    36    76    3    79   
Total net revenue $ 2,010    713    2,723    3,802    1,348    5,150   
Three months ended June 30, 2019 Six months ended June 30, 2019
(in millions) QxH QVC-International Total QxH QVC-International Total
Home $ 657    231    888    1,339    478    1,817   
Beauty 320    158    478    612    301    913   
Apparel 344    108    452    671    220    891   
Accessories 247    65    312    468    127    595   
Electronics 173    22    195    355    47    402   
Jewelry 92    50    142    205    102    307   
Other revenue 41    6    47    81    9    90   
Total net revenue $ 1,874    640    2,514    3,731    1,284    5,015   

Consumer Product Revenue and Other Revenue

QVC's revenue includes sales of consumer products in the following categories; home, beauty, apparel, accessories, electronics and jewelry, which are primarily sold through live merchandise-focused televised shopping programs and via our websites and other interactive media.

Other revenue consists primarily of income generated from our U.S. Private Label Credit Card ("PLCC") in which a large consumer financial services company provides revolving credit directly to QVC's customers for the sole purpose of purchasing merchandise or services with a PLCC. In return, the Company receives a portion of the net economics of the credit card program.

Revenue Recognition

For each of the three and six months ended June 30, 2020 and 2019, revenue is recognized when obligations with our customer are satisfied; generally this occurs at the time of shipment to our customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration we expect to receive in exchange for transferring goods, net of allowances for returns.

The Company generally recognizes revenue related to the PLCC program over time as the PLCC is used by QVC's customers.

Sales, value add, use and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue.
The Company elected to treat shipping and handling activities that occur after the customer obtains control of the goods as a fulfillment cost and not as a promised good or service. Accordingly, the Company accrues the related shipping costs and recognizes revenue upon delivery of the goods to the shipping carrier. In electing this accounting policy, all shipping and handling activities will be treated as fulfillment costs.

The Company generally extends payment terms with its customers of one year or less and does not consider the time value of money when recognizing revenue.

Significant Judgments
Our products are generally sold with a right of return and we may provide other credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. The Company has determined that it is generally the principal in vendor arrangements as the Company can establish control over the goods prior to shipment. Accordingly, the Company records revenue for these arrangements on a gross basis.