Annual report pursuant to Section 13 and 15(d)

Income Taxes Income Tax (Tables)

v3.22.4
Income Taxes Income Tax (Tables)
 12 Months Ended
Dec. 31, 2022
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) 2022 2021 2020
Current:
U.S. federal $ 159  329  187 
State and local 38  44  55 
Foreign jurisdictions 84  117  105 
Total 281  490  347 
Deferred:
U.S. federal (43) (67) (12)
State and local 1  (13) 21 
Foreign jurisdictions (19) (2) (11)
Total (61) (82) (2)
Total income tax expense $ 220  408  345 
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] Pre-tax income was as follows:
Years ended December 31,
(in millions) 2022 2021 2020
QxH $ (1,812) 883  931 
QVC-International 222  376  316 
Consolidated QVC $ (1,590) 1,259  1,247 
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 2022, 2021 and 2020, as a result of the following:
Years ended December 31,
2022 2021 2020
Provision at statutory rate $ (334) 264 262
State income taxes, net of federal benefit 31 24 52
Foreign taxes (7) 18 25
Goodwill Impairment 508 —  — 
Valuation allowance (1) 12 5
Tax on foreign earnings, net of federal tax benefits
 (4) 64 (5)
Other permanent differences 24 29 4
Corporate restructuring —  —  19
Other, net 3 (3) (17)
Total income tax expense $ 220  408 345
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) 2022 2021
Deferred tax assets:
Accounts receivable, principally due to the allowance for credit losses and related reserves for the uncollectible accounts $ 22  21 
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986
 31  32 
Allowance for sales returns
 16  30 
Deferred revenue
 80  99 
Deferred compensation
 10  10 
Unrecognized federal and state tax benefits
 16  15 
Net operating loss and other carryforwards 113  116 
Foreign tax credits carryforward
 54  54 
Lease obligations
 90  63 
Cumulative translation of foreign currencies
 5  8 
Accrued liabilities
 15  10 
Other
 25  19 
Subtotal
 477  477 
Valuation allowance
 (169) (171)
Total deferred tax assets
 308  306 
Deferred tax liabilities:
Depreciation and amortization
 (751) (835)
Lease assets
 (89) (57)
Other receivable —  (11)
Total deferred tax liabilities
 (840) (903)
Net deferred tax liability
 $ (532) (597)
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] A reconciliation of the 2021 and 2022 beginning and ending amount of the liability for unrecognized tax benefits is as follows:
(in millions)
Balance at January 1, 2021 $ 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 
Increases related to prior year tax positions 7 
Decreases related to prior year tax positions (7)
Decreases related to settlements with taxing authorities (4)
Increases related to current year tax positions 7 
Balance at December 31, 2022 $ 76