Unusual or Infrequently Occurring Items |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unusual or Infrequent Items, or Both [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unusual or Infrequent Items, or Both, Disclosure |
(19) Fire at Rocky Mount Fulfillment Center
On December 18, 2021, QVC experienced a fire at its Rocky Mount, Inc. fulfillment center in North Carolina. Rocky Mount was the Company’s second-largest fulfillment center for QxH and the Company’s primary returns center for hard goods.
The Company maintains property, general liability and business interruption insurance coverage. Based on the provisions of QVC's insurance policies, the Company has determined that recovery of certain fire related costs incurred as of December 31, 2021 is probable and recorded $229 million of insurance recoveries. During the year ended December 31, 2021, the Company received $100 million of insurance proceeds, representing an advance of funds. As a result, the insurance receivable balance was $129 million as of December 31, 2021 and was recorded in accounts receivable in the Consolidated Balance Sheet.
As of the date of this report, we are still in the process of assessing damage to property and inventory and submitting relevant insurance claims. There is approximately $117 million of inventory at the Rocky Mount facility that is currently being assessed for damage and is included in Inventories in the consolidated balance sheet as of December 31, 2021. We anticipate any additional inventory losses will be covered by our insurance policies. We expect to continue to record additional costs and recoveries until the property and inventory assessment is completed and the insurance claim is fully settled.
Certain incremental costs incurred to date related to the fire and related insurance recovery for the year ended December 31, 2021 are as follows:
(1) Amount includes $21 million of costs that will not be reimbursed by QVC's insurance policies primarily related to personnel costs.
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