Registration of securities issued in business combination transactions

Guarantor/Non-guarantor Subsidiary Financial Information (Tables)

v2.4.0.8
Guarantor/Non-guarantor Subsidiary Financial Information (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Guarantor Non-guarantor Subsidiary Financial Information [Abstract]    
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Year

Condensed consolidated balance sheets

 
  March 31, 2013  
(in millions)
  Parent
issuer-
QVC, Inc.
  Combined
subsidiary
guarantors
  Combined
non-guarantor
subsidiaries
  Eliminations   Consolidated-
QVC, Inc. and
subsidiaries
 

Assets

 

Current assets:

                               

Cash and cash equivalents

  $ 3     168     268         439  

Restricted cash

    13         2         15  

Accounts receivable, net

    532         243         775  

Inventories

    699         236         935  

Deferred income taxes

    135         20         155  

Prepaid expenses

    22         28         50  
                       

Total current assets

    1,404     168     797         2,369  

Property, plant and equipment, net

    243     66     775         1,084  

Cable and satellite television distribution rights, net

        589     133         722  

Goodwill

    4,169         1,010         5,179  

Other intangible assets, net

    1,245     2,049     167         3,461  

Other noncurrent assets

    16         67         83  

Investments in subsidiaries

    3,599     1,750         (5,349 )    
                       

Total assets

  $ 10,676     4,622     2,949     (5,349 )   12,898  
                       

Liabilities and equity

 

Current liabilities:

                               

Current portion of debt and capital lease obligations

  $ 2         9         11  

Accounts payable-trade

    210         212         422  

Accrued liabilities

    264     95     395         754  

Intercompany accounts (receivable) payable

    (368 )   (315 )   683          
                       

Total current liabilities

    108     (220 )   1,299         1,187  

Long-term portion of debt and capital lease obligations

    3,527         58         3,585  

Deferred compensation

    10         1         11  

Deferred income taxes

    423     952     (8 )       1,367  

Other long-term liabilities

    136         22         158  
                       

Total liabilities

    4,204     732     1,372         6,308  
                       

Equity:

                               

QVC, Inc. shareholder's equity

    6,472     3,890     1,459     (5,349 )   6,472  

Noncontrolling interest

            118         118  
                       

Total equity

    6,472     3,890     1,577     (5,349 )   6,590  
                       

Total liabilities and equity

  $ 10,676     4,622     2,949     (5,349 )   12,898  
                       
Condensed consolidated balance sheets
December 31, 2012
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Assets
Current assets:





Cash and cash equivalents
$
75

165

300


540

Restricted cash
13


2


15

Accounts receivable, net
747


308


1,055

Inventories
691


218


909

Deferred income taxes
131


20


151

Prepaid expenses
19


34


53

Total current assets
1,676

165

882


2,723

Property, plant and equipment, net
247

67

817


1,131

Cable and satellite television distribution rights, net

618

146


764

Goodwill
4,169


1,065


5,234

Other intangible assets, net
1,280

2,049

180


3,509

Other noncurrent assets
14


63


77

Investments in subsidiaries
3,789

1,838


(5,627
)

Total assets
$
11,175

4,737

3,153

(5,627
)
13,438

Liabilities and equity
Current liabilities:





Current portion of debt and capital lease obligations
$
2


10


12

Accounts payable-trade
324


242


566

Accrued liabilities
402

106

447


955

Intercompany accounts (receivable) payable
(226
)
(411
)
637



Total current liabilities
502

(305
)
1,336


1,533

Long-term portion of debt and capital lease obligations
3,404


61


3,465

Deferred compensation
11


1


12

Deferred income taxes
431

964

15


1,410

Other long-term liabilities
137

17

30


184

Total liabilities
4,485

676

1,443


6,604

Equity:





QVC, Inc. shareholder's equity
6,690

4,061

1,566

(5,627
)
6,690

Noncontrolling interest


144


144

Total equity
6,690

4,061

1,710

(5,627
)
6,834

Total liabilities and equity
$
11,175

4,737

3,153

(5,627
)
13,438
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Year
Condensed consolidated balance sheets
December 31, 2012
 
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Assets
Current assets:





Cash and cash equivalents
$
75

165

300


540

Restricted cash
13


2


15

Accounts receivable, net
747


308


1,055

Inventories
691


218


909

Deferred income taxes
131


20


151

Prepaid expenses
19


34


53

Total current assets
1,676

165

882


2,723

Property, plant and equipment, net
247

67

817


1,131

Cable and satellite television distribution rights, net

618

146


764

Goodwill
4,169


1,065


5,234

Other intangible assets, net
1,280

2,049

180


3,509

Other noncurrent assets
14


63


77

Investments in subsidiaries
3,789

1,838


(5,627
)

Total assets
$
11,175

4,737

3,153

(5,627
)
13,438

Liabilities and equity
Current liabilities:





Current portion of debt and capital lease obligations
$
2


10


12

Accounts payable-trade
324


242


566

Accrued liabilities
402

106

447


955

Intercompany accounts (receivable) payable
(226
)
(411
)
637



Total current liabilities
502

(305
)
1,336


1,533

Long-term portion of debt and capital lease obligations
3,404


61


3,465

Deferred compensation
11


1


12

Deferred income taxes
431

964

15


1,410

Other long-term liabilities
137

17

30


184

Total liabilities
4,485

676

1,443


6,604

Equity:





QVC, Inc. shareholder's equity
6,690

4,061

1,566

(5,627
)
6,690

Noncontrolling interest


144


144

Total equity
6,690

4,061

1,710

(5,627
)
6,834

Total liabilities and equity
$
11,175

4,737

3,153

(5,627
)
13,438

Condensed consolidated balance sheets
December 31, 2011
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Assets
Current assets:





Cash and cash equivalents
$
3

223

334


560

Restricted cash
15




15

Accounts receivable, net
721


299


1,020

Inventories
693


213


906

Deferred income taxes
116


22


138

Prepaid expenses
27


27


54

Total current assets
1,575

223

895


2,693

Property, plant and equipment, net
247

66

771


1,084

Cable and satellite television distribution rights, net

724

181


905

Goodwill
4,169


1,070


5,239

Other intangible assets, net
1,443

2,049

132


3,624

Other noncurrent assets
13


12


25

Investments in subsidiaries
3,884

1,168


(5,052
)

Total assets
$
11,331

4,230

3,061

(5,052
)
13,570

Liabilities and equity
Current liabilities:





Current portion of debt and capital lease obligations
$
2


8


10

Accounts payable-trade
257


234


491

Accrued liabilities
348

69

400


817

Intercompany accounts (receivable) payable
(300
)
(307
)
607



Total current liabilities
307

(238
)
1,249


1,318

Long-term portion of debt and capital lease obligations
2,435


45


2,480

Deferred compensation
11




11

Deferred income taxes
489

1,002

43


1,534

Other long-term liabilities
199

1

8


208

Total liabilities
3,441

765

1,345


5,551

Equity:





QVC, Inc. shareholder's equity
7,890

3,465

1,587

(5,052
)
7,890

Noncontrolling interest


129


129

Total equity
7,890

3,465

1,716

(5,052
)
8,019

Total liabilities and equity
$
11,331

4,230

3,061

(5,052
)
13,570

Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Year
Condensed consolidated statements of operations
Three months ended March 31, 2013
 
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net revenue
$
1,368

183

654

(231
)
1,974

Cost of goods sold
854

25

434

(61
)
1,252

Gross profit
514

158

220

(170
)
722

Operating expenses:





Operating
45

46

82


173

Selling, general and administrative, including stock-based compensation
235


90

(170
)
155

Depreciation
10

1

19


30

Amortization of intangible assets
51

34

19


104

Intercompany management expense (income)
17

(4
)
(13
)



358

77

197

(170
)
462

Operating income
156

81

23


260

Other income (expense):





Equity in earnings of investee


1


1

Gain on financial instruments
12




12

Interest expense
(62
)

(1
)

(63
)
Foreign currency (loss) gain
(1
)
(1
)
1


(1
)
Loss on extinguishment of debt
(41
)



(41
)
Intercompany interest (expense) income
(3
)
12

(9
)



(95
)
11

(8
)

(92
)
Income before income taxes
61

92

15


168

Income tax expense
(10
)
(28
)
(24
)

(62
)
Equity in earnings of subsidiaries, net of tax
55

16


(71
)

Net income (loss)
106

80

(9
)
(71
)
106

Less net income attributable to the noncontrolling interest
(12
)

(12
)
12

(12
)
Net income (loss) attributable to QVC, Inc. shareholder
$
94

80

(21
)
(59
)
94

Condensed consolidated statements of operations
Year ended December 31, 2012
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net revenue
$
5,884

819

2,847

(1,034
)
8,516

Cost of goods sold
3,713

116

1,872

(282
)
5,419

Gross profit
2,171

703

975

(752
)
3,097

Operating expenses:





Operating
173

206

336


715

Selling, general and administrative, including stock based compensation
1,002

1

337

(752
)
588

Depreciation
35

4

87


126

Amortization of intangible assets
204

130

66


400

Intercompany management expense (income)
60

(14
)
(46
)



1,474

327

780

(752
)
1,829

Operating income
697

376

195


1,268

Other income (expense):





Loss on investments


(4
)

(4
)
Gain on financial instruments
48




48

Interest expense
(233
)

(2
)

(235
)
Interest income


2


2

Foreign currency (loss) gain
(10
)
4

8


2

Intercompany interest (expense) income
(13
)
51

(38
)



(208
)
55

(34
)

(187
)
Income before income taxes
489

431

161


1,081

Income tax expense
(116
)
(141
)
(137
)

(394
)
Equity in earnings of subsidiaries, net of tax
251

93


(344
)

Net income (loss)
624

383

24

(344
)
687

Less net income attributable to the noncontrolling interest


(63
)

(63
)
Net income (loss) attributable to QVC, Inc. shareholder
$
624

383

(39
)
(344
)
624

Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Year
Condensed consolidated statements of operations
Three months ended March 31, 2012
 
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net revenue
$
1,310

172

672

(222
)
1,932

Cost of goods sold
822

28

439

(59
)
1,230

Gross profit
488

144

233

(163
)
702

Operating expenses:





Operating
42

44

89


175

Selling, general and administrative, including stock-based compensation
224

1

80

(163
)
142

Depreciation
9

1

21


31

Amortization of intangible assets
48

32

16


96

Intercompany management (income) expense
(4
)
3

1




319

81

207

(163
)
444

Operating income
169

63

26


258

Other income (expense):





Gain on financial instruments
11




11

Interest expense
(55
)



(55
)
Interest income


1


1

Foreign currency (loss) gain
(2
)
4

4


6

Intercompany interest (expense) income
(3
)
13

(10
)



(49
)
17

(5
)

(37
)
Income before income taxes
120

80

21


221

Income tax expense
(34
)
(25
)
(23
)

(82
)
Equity in earnings of subsidiaries, net of tax
53

12


(65
)

Net income (loss)
139

67

(2
)
(65
)
139

Less net income attributable to the noncontrolling interest
(14
)

(14
)
14

(14
)
Net income (loss) attributable to QVC, Inc. shareholder
$
125

67

(16
)
(51
)
125

Condensed consolidated statements of operations
Year ended December 31, 2011
 
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net revenue
$
5,684

790

2,789

(995
)
8,268

Cost of goods sold
3,580

120

1,833

(255
)
5,278

Gross profit
2,104

670

956

(740
)
2,990

Operating expenses:





Operating
191

201

352


744

Selling, general and administrative, including stock based compensation
947


328

(740
)
535

Depreciation
36

4

95


135

Amortization of intangible assets
242

133

64


439

Intercompany management expense (income)
89

(27
)
(62
)



1,505

311

777

(740
)
1,853

Operating income
599

359

179


1,137

Other income (expense):





Loss on investments


(2
)

(2
)
Gain on financial instruments
50




50

Interest expense
(230
)

(1
)

(231
)
Interest income


2


2

Foreign currency (loss) gain
(3
)
(2
)
3


(2
)
Intercompany interest (expense) income
(9
)
53

(44
)



(192
)
51

(42
)

(183
)
Income before income taxes
407

410

137


954

Income tax expense
(110
)
(124
)
(108
)

(342
)
Equity in earnings of subsidiaries, net of tax
263

70


(333
)

Net income (loss)
560

356

29

(333
)
612

Less net income attributable to the noncontrolling interest


(52
)

(52
)
Net income (loss) attributable to QVC, Inc. shareholder
$
560

356

(23
)
(333
)
560



Condensed consolidated statements of operations
Year ended December 31, 2010
 
(in millions)
Subsidiary
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net revenue
$
5,480

783

2,529

(979
)
7,813

Cost of goods sold
3,478

121

1,663

(254
)
5,008

Gross profit
2,002

662

866

(725
)
2,805

Operating expenses:





Operating
185

202

314


701

Selling, general and administrative, including stock based compensation
887

1

286

(725
)
449

Depreciation
37

5

86


128

Amortization of intangible assets
197

135

63


395

Intercompany management expense (income)
105

(33
)
(72
)



1,411

310

677

(725
)
1,673

Operating income
591

352

189


1,132

Other income (expense):





(Loss) gain on investments
(27
)

132


105

Gain on financial instruments
40




40

Interest expense
(414
)

(1
)

(415
)
Interest income


2


2

Foreign currency (loss) gain
(6
)
(9
)
7


(8
)
Other expense
(22
)

(1
)

(23
)
Intercompany interest (expense) income
(6
)
51

(45
)



(435
)
42

94


(299
)
Income before income taxes
156

394

283


833

Income tax expense
(9
)
(122
)
(151
)

(282
)
Equity in earnings of subsidiaries, net of tax
357

78


(435
)

Net income (loss)
504

350

132

(435
)
551

Less net income attributable to the noncontrolling interest


(47
)

(47
)
Net income (loss) attributable to QVC, Inc. shareholder
$
504

350

85

(435
)
504

Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Year

Condensed consolidated statements of comprehensive income (loss)

 
  Three months ended March 31, 2013  
(in millions)
  Subsidiary
issuer-
QVC, Inc.
  Combined
subsidiary
guarantors
  Combined
non-guarantor
subsidiaries
  Eliminations   Consolidated-
QVC, Inc. and
subsidiaries
 

Net income (loss)

  $ 106     80     (9 )   (71 )   106  

Foreign currency translation adjustments

    (91 )       (91 )   91     (91 )
                       

Total comprehensive income (loss)

    15     80     (100 )   20     15  

Comprehensive loss (income) attributable to noncontrolling interest

    1         1     (1 )   1  
                       

Comprehensive income (loss) attributable to QVC, Inc. shareholder

    16     80     (99 )   19     16  
                       
Consolidated statements of comprehensive income (loss)
December 31, 2012
 
(in millions)
Subsidiary
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net income (loss)
$
624

383

24

(344
)
687

Other comprehensive loss, net of tax:










Foreign currency translation adjustments


(27
)

(27
)
Total comprehensive income (loss)
624

383

(3
)
(344
)
660

Comprehensive income attributable to noncontrolling interest


(44
)

(44
)
Comprehensive income (loss) attributable to QVC, Inc. shareholder
624

383

(47
)
(344
)
616

Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Year

Condensed consolidated statements of comprehensive income (loss)

 
  Three months ended March 31, 2012  
(in millions)
  Subsidiary
issuer-
QVC, Inc.
  Combined
subsidiary
guarantors
  Combined
non-guarantor
subsidiaries
  Eliminations   Consolidated-
QVC, Inc. and
subsidiaries
 

Net income (loss)

  $ 139     67     (2 )   (65 )   139  

Foreign currency translation adjustments

    13         13     (13 )   13  
                       

Total comprehensive income (loss)

    152     67     11     (78 )   152  

Comprehensive loss (income) attributable to noncontrolling interest

    (4 )       (4 )   4     (4 )
                       

Comprehensive income (loss) attributable to QVC, Inc. shareholder

    148     67     7     (74 )   148  
                       
Consolidated statements of comprehensive income (loss)
December 31, 2011
 
(in millions)
Subsidiary
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net income (loss)
$
560

356

29

(333
)
612

Other comprehensive loss, net of tax:










Foreign currency translation adjustments


(10
)

(10
)
Total comprehensive income (loss)
560

356

19

(333
)
602

Comprehensive income attributable to noncontrolling interest


(57
)

(57
)
Comprehensive income (loss) attributable to QVC, Inc. shareholder
560

356

(38
)
(333
)
545


Consolidated statements of comprehensive income (loss)
December 31, 2010
 
(in millions)
Subsidiary
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net income (loss)
$
504

350

132

(435
)
551

Other comprehensive income (loss), net of tax:










Foreign currency translation adjustments


(39
)

(39
)
Cash flow hedging derivatives
46




46

Unrealized loss on investment
(77
)



(77
)
Total other comprehensive loss
(31
)

(39
)

(70
)
Total comprehensive income (loss)
473

350

93

(435
)
481

Comprehensive income attributable to noncontrolling interest


(62
)

(62
)
Comprehensive income (loss) attributable to QVC, Inc. shareholder
473

350

31

(435
)
419

Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Year
Condensed consolidated statements of cash flows
Three months ended March 31, 2013
 
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Operating activities:










Net cash provided by (used in) operating activities
101

77

(3
)

175

Investing activities:










Capital expenditures, net
(8
)

(25
)

(33
)
Expenditures for cable and satellite television distribution rights

(24
)
(1
)

(25
)
Changes in other noncurrent assets and liabilities
(3
)
2

(3
)

(4
)
Intercompany investing activities
245

104


(349
)

Net cash provided by (used in) investing activities
234

82

(29
)
(349
)
(62
)
Financing activities:










Principal payments of debt and capital lease obligations
(1,167
)

(1
)

(1,168
)
Principal borrowings of debt from senior secured credit facility
240




240

Proceeds from issuance of senior secured notes
1,050




1,050

Payment of debt origination fees
(14
)



(14
)
Payment of bond premium fees
(33
)



(33
)
Other financing activities
4




4

Dividends paid to Liberty, net
(244
)



(244
)
Dividends paid to noncontrolling interest


(25
)

(25
)
Net short-term intercompany debt (repayments) borrowings
(142
)
96

46



Intercompany financing activities
(101
)
(252
)
4

349


Net cash (used in) provided by financing activities
(407
)
(156
)
24

349

(190
)
Effect of foreign exchange rate changes on cash and cash equivalents


(24
)

(24
)
Net (decrease) increase in cash and cash equivalents
(72
)
3

(32
)

(101
)
Cash and cash equivalents, beginning of year
75

165

300


540

Cash and cash equivalents, end of year
3

168

268


439

Condensed consolidated statements of cash flows
Year ended December 31, 2012
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Operating activities:










Net cash provided by operating activities
618

413

175


1,206

Investing activities:










Capital expenditures, net
(69
)
(5
)
(172
)

(246
)
Expenditures for cable and satellite television distribution rights

(1
)
(1
)

(2
)
Cash paid for joint ventures and acquisitions of businesses, net of cash received


(95
)

(95
)
Decrease in restricted cash
2




2

Changes in other noncurrent assets and liabilities
(14
)
(1
)
12


(3
)
Intercompany investing activities
346

217


(563
)

Net cash provided by (used in) investing activities
265

210

(256
)
(563
)
(344
)
Financing activities:










Principal payments of debt and capital lease obligations
(1,237
)

(9
)

(1,246
)
Principal borrowings of debt
1,717




1,717

Proceeds from issuance of senior secured notes
500




500

Payment of debt origination fees
(7
)



(7
)
Other financing activities
20




20

Dividends paid to Liberty, net
(1,817
)



(1,817
)
Dividends paid to noncontrolling interest


(29
)

(29
)
Net short-term intercompany debt borrowings (repayments)
74

(104
)
30



Intercompany financing activities
(61
)
(577
)
75

563


Net cash (used in) provided by financing activities
(811
)
(681
)
67

563

(862
)
Effect of foreign exchange rate changes on cash and cash equivalents


(20
)

(20
)
Net increase (decrease) in cash and cash equivalents
72

(58
)
(34
)

(20
)
Cash and cash equivalents, beginning of year
3

223

334


560

Cash and cash equivalents, end of year
75

165

300


540

Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Year
Condensed consolidated statements of cash flows
Three months ended March 31, 2012
 
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Operating activities:





Net cash provided by operating activities
264

83

54


401

Investing activities:





Capital expenditures, net
(7
)
(1
)
(37
)

(45
)
Expenditures for cable and satellite television distribution rights

(1
)
(1
)

(2
)
Cash paid for acquisitions of businesses, net of cash received


(16
)

(16
)
Changes in other noncurrent assets and liabilities
2

(1
)
(1
)


Intercompany investing activities
135

121


(256
)

Net cash provided by (used in) investing activities
130

118

(55
)
(256
)
(63
)
Financing activities:










Principal payments of debt and capital lease obligations
(315
)

(4
)

(319
)
Principal borrowings of debt from senior secured credit facility
275




275

Dividends paid to Liberty, net
(238
)



(238
)
Dividends paid to noncontrolling interest


(29
)

(29
)
Net short-term intercompany debt (repayments) borrowings
(89
)
28

61



Intercompany financing activities

(235
)
(21
)
256


Net cash (used in) provided by financing activities
(367
)
(207
)
7

256

(311
)
Effect of foreign exchange rate changes on cash and cash equivalents


(9
)

(9
)
Net increase (decrease) in cash and cash equivalents
27

(6
)
(3
)

18

Cash and cash equivalents, beginning of year
3

223

334


560

Cash and cash equivalents, end of year
30

217

331


578

Condensed consolidated statements of cash flows
Year ended December 31, 2011
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Operating activities:





Net cash provided by operating activities
328

380

110


818

Investing activities:





Capital expenditures, net
(87
)
(8
)
(164
)

(259
)
Expenditures for cable and satellite television distribution rights

(2
)


(2
)
Decrease in restricted cash
1




1

Changes in other noncurrent assets and liabilities
12


(8
)

4

Intercompany investing activities
382

190


(572
)

Net cash provided by (used in) investing activities
308

180

(172
)
(572
)
(256
)
Financing activities:










Principal payments of debt and capital lease obligations
(825
)

(12
)

(837
)
Principal borrowings of debt
465




465

Dividends paid to Liberty, net
(205
)



(205
)
Dividends paid to noncontrolling interest


(50
)

(50
)
Net short-term intercompany debt (repayments) borrowings
(83
)
93

(10
)


Intercompany financing activities
(29
)
(590
)
47

572


Net cash (used in) provided by financing activities
(677
)
(497
)
(25
)
572

(627
)
Effect of foreign exchange rate changes on cash and cash equivalents


4


4

Net (decrease) increase in cash and cash equivalents
(41
)
63

(83
)

(61
)
Cash and cash equivalents, beginning of year
44

160

417


621

Cash and cash equivalents, end of year
3

223

334


560

Condensed consolidated statements of cash flows
Year ended December 31, 2010
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Operating activities:





Net cash provided by operating activities
773

371

60


1,204

Investing activities:





Capital expenditures, net
(25
)
(1
)
(194
)

(220
)
Expenditures for cable and satellite television distribution rights

(2
)
(2
)

(4
)
Proceeds from joint ventures and equity investees


220


220

Decrease in restricted cash
2




2

Changes in other noncurrent assets and liabilities
1


(8
)

(7
)
Intercompany investing activities
380

324


(704
)

Net cash provided by (used in) investing activities
358

321

16

(704
)
(9
)
Financing activities:





Principal payments of debt and capital lease obligations
(4,131
)

(11
)

(4,142
)
Principal borrowings of debt
1,905




1,905

Proceeds from issuance of senior secured notes
1,000




1,000

Payment of debt origination fees
(27
)



(27
)
Dividends paid to Liberty, net
(9
)



(9
)
Dividends paid to noncontrolling interest


(63
)

(63
)
Net short-term intercompany debt borrowings (repayments)
97

14

(111
)


Intercompany financing activities

(739
)
35

704


Net cash (used in) provided by financing activities
(1,165
)
(725
)
(150
)
704

(1,336
)
Effect of foreign exchange rate changes on cash and cash equivalents


14


14

Net decrease in cash and cash equivalents
(34
)
(33
)
(60
)

(127
)
Cash and cash equivalents, beginning of year
78

193

477


748

Cash and cash equivalents, end of year
44

160

417


621