Quarterly report pursuant to Section 13 or 15(d)

Guarantor/Non-Guarantor Subsidiary Financial Information (Tables)

v3.4.0.3
Guarantor/Non-Guarantor Subsidiary Financial Information (Tables)
3 Months Ended
Mar. 31, 2016
Guarantor Non-guarantor Subsidiary Financial Information [Abstract]  
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Period
Condensed Consolidating Balance Sheets
March 31, 2016
 
(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
$
2

192

167


361

Restricted cash
9


2


11

Accounts receivable, net
766


265


1,031

Inventories
748


259


1,007

Prepaid expenses
28


29


57

Total current assets
1,553

192

722


2,467

Property and equipment, net
297

66

702


1,065

Cable and satellite television distribution rights, net

257

37


294

Goodwill
4,190


872


5,062

Other intangible assets, net
797

2,050

39


2,886

Other noncurrent assets
6


53


59

Investments in subsidiaries
3,608

2,685


(6,293
)

Total assets
$
10,451

5,250

2,425

(6,293
)
11,833

Liabilities and equity
Current liabilities:





Current portion of debt and capital lease obligations
$
3


7


10

Accounts payable-trade
328


230


558

Accrued liabilities
66

207

429


702

Intercompany accounts payable (receivable)
480

1,408

(1,888
)


Total current liabilities
877

1,615

(1,222
)

1,270

Long-term portion of debt and capital lease obligations
5,421


51


5,472

Deferred compensation
13


(1
)

12

Deferred income taxes
99

735

(32
)

802

Other long-term liabilities
99

1

141


241

Total liabilities
6,509

2,351

(1,063
)

7,797

Equity:





QVC, Inc. stockholder's equity
3,942

2,899

3,394

(6,293
)
3,942

Noncontrolling interest


94


94

Total equity
3,942

2,899

3,488

(6,293
)
4,036

Total liabilities and equity
$
10,451

5,250

2,425

(6,293
)
11,833

Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Period
Condensed Consolidating Balance Sheets
December 31, 2015
 
(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
$

112

215


327

Restricted cash
9


2


11

Accounts receivable, net
1,114


256


1,370

Inventories
714


215


929

Prepaid expenses
18


24


42

Total current assets
1,855

112

712


2,679

Property and equipment, net
295

67

640


1,002

Cable and satellite television distribution rights, net

297

42


339

Goodwill
4,190


845


5,035

Other intangible assets, net
842

2,050

44


2,936

Other noncurrent assets
5


62


67

Investments in subsidiaries
3,569

2,687


(6,256
)

Total assets
$
10,756

5,213

2,345

(6,256
)
12,058

Liabilities and equity
Current liabilities:





Current portion of debt and capital lease obligations
$
3


6


9

Accounts payable-trade
396


262


658

Accrued liabilities
229

207

436


872

Intercompany accounts payable (receivable)
562

1,271

(1,833
)


Total current liabilities
1,190

1,478

(1,129
)

1,539

Long-term portion of debt and capital lease obligations
5,342


51


5,393

Deferred compensation
14


(1
)

13

Deferred income taxes
94

744

(11
)

827

Other long-term liabilities
98


70


168

Total liabilities
6,738

2,222

(1,020
)

7,940

Equity:





QVC, Inc. stockholder's equity
4,018

2,991

3,265

(6,256
)
4,018

Noncontrolling interest


100


100

Total equity
4,018

2,991

3,365

(6,256
)
4,118

Total liabilities and equity
$
10,756

5,213

2,345

(6,256
)
12,058

Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Period
Condensed Consolidating Statements of Operations
Three months ended March 31, 2016
 
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net revenue
$
1,444

233

665

(329
)
2,013

Cost of goods sold
876

42

409

(47
)
1,280

Gross profit
568

191

256

(282
)
733

Operating expenses:





Operating
109

59

72

(98
)
142

Selling, general and administrative, including stock-based compensation
263


103

(184
)
182

Depreciation
12

2

20


34

Amortization
60

41

13


114


444

102

208

(282
)
472

Operating income
124

89

48


261

Other (expense) income:





Equity in losses of investee


(1
)

(1
)
Interest expense, net
(53
)



(53
)
Foreign currency gain (loss)
3

(2
)
1


2

Intercompany interest (expense) income

(21
)
21




(50
)
(23
)
21


(52
)
Income before income taxes
74

66

69


209

Income tax expense
(28
)
(26
)
(26
)

(80
)
Equity in earnings of subsidiaries, net of tax
83

56


(139
)

Net income
129

96

43

(139
)
129

Less net income attributable to the noncontrolling interest
(8
)

(8
)
8

(8
)
Net income attributable to QVC, Inc. stockholder
$
121

96

35

(131
)
121

Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Period
Condensed Consolidating Statements of Operations
Three months ended March 31, 2015
 
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net revenue
$
1,380

202

657

(301
)
1,938

Cost of goods sold
859

25

386

(49
)
1,221

Gross profit
521

177

271

(252
)
717

Operating expenses:
 
 
 
 
 
Operating
87

57

72

(79
)
137

Selling, general and administrative, including stock-based compensation
258


96

(173
)
181

Depreciation
10

3

20


33

Amortization
59

40

21


120


414

100

209

(252
)
471

Operating income
107

77

62


246

Other (expense) income:
 
 
 
 
 
Equity in losses of investee


(1
)

(1
)
Interest expense, net
(58
)

(1
)

(59
)
Foreign currency gain (loss)
14


(4
)

10

Intercompany interest (expense) income
(6
)
11

(5
)



(50
)
11

(11
)

(50
)
Income before income taxes
57

88

51


196

Income tax expense
(26
)
(25
)
(21
)

(72
)
Equity in earnings of subsidiaries, net of tax
93

9


(102
)

Net income
124

72

30

(102
)
124

Less net income attributable to the noncontrolling interest
(9
)

(9
)
9

(9
)
Net income attributable to QVC, Inc. stockholder
$
115

72

21

(93
)
115

Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Period
Condensed Consolidating Statements of Comprehensive Income
Three months ended March 31, 2016
 
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net income
$
129

96

43

(139
)
129

Foreign currency translation adjustments
34


34

(34
)
34

Total comprehensive income
163

96

77

(173
)
163

Comprehensive income attributable to noncontrolling interest
(15
)

(15
)
15

(15
)
Comprehensive income attributable to QVC, Inc. stockholder
$
148

96

62

(158
)
148

Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Period
Condensed Consolidating Statements of Comprehensive Income
Three months ended March 31, 2015
 
(in millions)
Parent
issuer-
QVC, Inc.

Combined
subsidiary
guarantors

Combined
non-guarantor
subsidiaries

Eliminations

Consolidated-
QVC, Inc. and
subsidiaries

Net income
$
124

72

30

(102
)
124

Foreign currency translation adjustments
(102
)

(102
)
102

(102
)
Total comprehensive (loss) income
22

72

(72
)

22

Comprehensive income attributable to noncontrolling interest
(8
)

(8
)
8

(8
)
Comprehensive (loss) income attributable to QVC, Inc. stockholder
$
14

72

(80
)
8

14

Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Period
Condensed Consolidating Statements of Cash Flows
Three months ended March 31, 2016
 
(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
$
181

77

18


276

Investing activities:
 
 
 
 
 
Capital expenditures
(29
)
(2
)
(8
)

(39
)
Expenditures for cable and satellite television distribution rights, net

1

(2
)

(1
)
Changes in other noncurrent assets
25


(27
)

(2
)
Intercompany investing activities
151

22


(173
)

Net cash provided by (used in) investing activities
147

21

(37
)
(173
)
(42
)
Financing activities:
 
 
 
 
 
Principal payments of debt and capital lease obligations
(436
)

(2
)

(438
)
Principal borrowings of debt from senior secured credit facility
515




515

Other financing activities
(9
)



(9
)
Dividends paid to Liberty
(234
)



(234
)
Dividends paid to noncontrolling interest


(21
)

(21
)
Net short-term intercompany debt (repayments) borrowings
(82
)
137

(55
)


Other intercompany financing activities
(80
)
(155
)
62

173


Net cash (used in) provided by financing activities
(326
)
(18
)
(16
)
173

(187
)
Effect of foreign exchange rate changes on cash and cash equivalents


(13
)

(13
)
Net increase in cash and cash equivalents
2

80

(48
)

34

Cash and cash equivalents, beginning of period

112

215


327

Cash and cash equivalents, end of period
$
2

192

167


361

Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Period
Condensed Consolidating Statements of Cash Flows
Three months ended March 31, 2015
 
(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
$
116

106

63


285

Investing activities:





Capital expenditures
(22
)
(1
)
(8
)

(31
)
Expenditures for cable and satellite television distribution rights, net

(44
)


(44
)
Other investing activities
1


(1
)


Changes in other noncurrent assets
(4
)

1


(3
)
Intercompany investing activities
243

150


(393
)

Net cash provided by (used in) investing activities
218

105

(8
)
(393
)
(78
)
Financing activities:





Principal payments of debt and capital lease obligations
(410
)

(2
)

(412
)
Principal borrowings of debt from senior secured credit facility
351




351

Payment of debt origination fees
(3
)



(3
)
Other financing activities
(1
)



(1
)
Dividends paid to Liberty
(59
)



(59
)
Dividends paid to noncontrolling interest


(20
)

(20
)
Net short-term intercompany debt borrowings (repayments)
(63
)
144

(81
)


Other intercompany financing activities
(100
)
(259
)
(34
)
393


Net cash used in financing activities
(285
)
(115
)
(137
)
393

(144
)
Effect of foreign exchange rate changes on cash and cash equivalents


(10
)

(10
)
Net (decrease) increase in cash and cash equivalents
49

96

(92
)

53

Cash and cash equivalents, beginning of period
2

123

222


347

Cash and cash equivalents, end of period
$
51

219

130


400