Annual report pursuant to Section 13 and 15(d)

Income Taxes Income Tax (Tables)

v3.22.0.1
Income Taxes Income Tax (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] Income tax expense consisted of the following:
Years ended December 31,
(in millions) 2021 2020 2019
Current:
U.S. federal $ 329  187  141 
State and local 44  55  37 
Foreign jurisdictions 116  104  93 
Total 489  346  271 
Deferred:
U.S. federal (66) (15) (11)
State and local (13) 21  3 
Foreign jurisdictions (2) (15) (1)
Total (81) (9) (9)
Total income tax expense $ 408  337  262 
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] Pre-tax income was as follows:
Years ended December 31,
(in millions) 2021 2020 2019
QxH $ 883  931  843 
QVC-International 376  316  236 
Consolidated QVC $ 1,259  1,247  1,079 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 21% in 2021, 2020 and 2019, as a result of the following:
Years ended December 31,
2021 2020 2019
Provision at statutory rate 21.0  % 21.0  % 21.0  %
State income taxes, net of federal benefit 1.9  4.2  2.9 
Foreign taxes 1.4  2.0  1.0 
Write-off of investment and notes of foreign subsidiary —  —  (3.1)
Valuation allowance 1.0  0.4  3.2 
Tax on foreign earnings, net of federal tax benefits
 5.0  (0.4) (0.2)
Other permanent differences 2.3  0.4  0.4 
Corporate restructuring —  0.9  — 
Impact of foreign currency tax regulation —  —  (0.7)
Other, net (0.2) (1.5) (0.2)
Total income tax expense 32.4  % 27.0  % 24.3  %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:
December 31,
(in millions) 2021 2020
Deferred tax assets:
Accounts receivable, principally due to the allowance for credit losses and related reserves for the uncollectible accounts $ 21  28 
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986
 32  37 
Allowance for sales returns
 30  28 
Deferred revenue
 99  5 
Deferred compensation
 10  32 
Unrecognized federal and state tax benefits
 15  14 
Net operating loss and other carryforwards 116  116 
Foreign tax credits carryforward
 54  48 
Lease obligations
 63  69 
Cumulative translation of foreign currencies
 8  7 
Accrued liabilities
 10  8 
Other
 19  14 
Subtotal
 477  406 
Valuation allowance
 (171) (166)
Total deferred tax assets
 306  240 
Deferred tax liabilities:
Depreciation and amortization
 (838) (853)
Lease assets
 (57) (64)
Other receivable (11) — 
Total deferred tax liabilities
 (906) (917)
Net deferred tax liability
 $ (600) (677)
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] A reconciliation of the 2020 and 2021 beginning and ending amount of the liability for unrecognized tax benefits is as follows:
(in millions)
Balance at January 1, 2020 $ 60 
Increases related to prior year tax positions 5 
Decreases related to prior year tax positions (6)
Decreases related to settlements with taxing authorities — 
Increases related to current year tax positions 8 
Balance at December 31, 2020 67 
Increases related to prior year tax positions 1 
Decreases related to prior year tax positions (5)
Decreases related to settlements with taxing authorities — 
Increases related to current year tax positions 10 
Balance at December 31, 2021 $ 73