Guarantor/Non-Guarantor Subsidiary Financial Information (Tables)
|
9 Months Ended |
Sep. 30, 2019 |
Sep. 30, 2018 |
| Guarantor Non-guarantor Subsidiary Financial Information [Abstract] |
|
|
| Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Period |
Condensed Consolidating Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019 |
|
(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 |
$ |
31 |
|
263 |
|
257 |
|
— |
|
551 |
|
Restricted cash |
5 |
|
— |
|
3 |
|
— |
|
8 |
|
Accounts receivable, net |
733 |
|
198 |
|
287 |
|
— |
|
1,218 |
|
Inventories |
870 |
|
274 |
|
295 |
|
— |
|
1,439 |
|
Prepaid expenses and other current assets |
66 |
|
18 |
|
51 |
|
— |
|
135 |
|
Total current assets |
1,705 |
|
753 |
|
893 |
|
— |
|
3,351 |
|
Property and equipment, net |
266 |
|
237 |
|
676 |
|
— |
|
1,179 |
|
Operating lease right-of-use assets |
3 |
|
17 |
|
198 |
|
— |
|
218 |
|
Television distribution rights, net |
— |
|
168 |
|
1 |
|
— |
|
169 |
|
Goodwill |
4,190 |
|
922 |
|
842 |
|
— |
|
5,954 |
|
Other intangible assets, net |
553 |
|
3,072 |
|
27 |
|
— |
|
3,652 |
|
Other noncurrent assets |
17 |
|
10 |
|
82 |
|
— |
|
109 |
|
Investments in subsidiaries |
5,819 |
|
962 |
|
— |
|
(6,781 |
) |
— |
|
Total assets |
$ |
12,553 |
|
6,141 |
|
2,719 |
|
(6,781 |
) |
14,632 |
|
Liabilities and equity |
Current liabilities: |
|
|
|
|
|
Current portion of debt and finance lease obligations |
$ |
3 |
|
1 |
|
14 |
|
— |
|
18 |
|
Accounts payable-trade |
490 |
|
132 |
|
246 |
|
— |
|
868 |
|
Accrued liabilities |
173 |
|
357 |
|
305 |
|
— |
|
835 |
|
Intercompany accounts payable (receivable) |
110 |
|
(1,290 |
) |
1,180 |
|
— |
|
— |
|
Total current liabilities |
776 |
|
(800 |
) |
1,745 |
|
— |
|
1,721 |
|
Long-term portion of debt and finance lease obligations |
4,972 |
|
6 |
|
137 |
|
— |
|
5,115 |
|
Deferred income taxes |
68 |
|
686 |
|
(27 |
) |
— |
|
727 |
|
Other long-term liabilities |
141 |
|
21 |
|
188 |
|
— |
|
350 |
|
Total liabilities |
5,957 |
|
(87 |
) |
2,043 |
|
— |
|
7,913 |
|
Equity: |
|
|
|
|
|
QVC, Inc. stockholder's equity |
6,596 |
|
6,228 |
|
553 |
|
(6,781 |
) |
6,596 |
|
Noncontrolling interest |
— |
|
— |
|
123 |
|
— |
|
123 |
|
Total equity |
6,596 |
|
6,228 |
|
676 |
|
(6,781 |
) |
6,719 |
|
Total liabilities and equity |
$ |
12,553 |
|
6,141 |
|
2,719 |
|
(6,781 |
) |
14,632 |
|
|
|
| Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Period |
Condensed Consolidating Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018 |
|
(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 |
$ |
73 |
|
192 |
|
278 |
|
— |
|
543 |
|
Restricted cash |
5 |
|
— |
|
2 |
|
— |
|
7 |
|
Accounts receivable, net |
1,166 |
|
307 |
|
314 |
|
— |
|
1,787 |
|
Inventories |
725 |
|
310 |
|
245 |
|
— |
|
1,280 |
|
Prepaid expenses and other current assets |
95 |
|
73 |
|
48 |
|
— |
|
216 |
|
Total current assets |
2,064 |
|
882 |
|
887 |
|
— |
|
3,833 |
|
Property and equipment, net |
281 |
|
213 |
|
671 |
|
— |
|
1,165 |
|
Television distribution rights, net |
— |
|
139 |
|
1 |
|
— |
|
140 |
|
Goodwill |
4,190 |
|
922 |
|
860 |
|
— |
|
5,972 |
|
Other intangible assets, net |
529 |
|
3,116 |
|
21 |
|
— |
|
3,666 |
|
Other noncurrent assets |
8 |
|
20 |
|
52 |
|
— |
|
80 |
|
Investments in subsidiaries |
5,523 |
|
885 |
|
— |
|
(6,408 |
) |
— |
|
Total assets |
$ |
12,595 |
|
6,177 |
|
2,492 |
|
(6,408 |
) |
14,856 |
|
Liabilities and equity |
Current liabilities: |
|
|
|
|
|
Current portion of debt and capital lease obligations |
$ |
403 |
|
1 |
|
17 |
|
— |
|
421 |
|
Accounts payable-trade |
494 |
|
201 |
|
313 |
|
— |
|
1,008 |
|
Accrued liabilities |
358 |
|
394 |
|
274 |
|
— |
|
1,026 |
|
Intercompany accounts (receivable) payable |
(95 |
) |
(1,015 |
) |
1,110 |
|
— |
|
— |
|
Total current liabilities |
1,160 |
|
(419 |
) |
1,714 |
|
— |
|
2,455 |
|
Long-term portion of debt and capital lease obligations |
4,540 |
|
6 |
|
153 |
|
— |
|
4,699 |
|
Deferred income taxes |
63 |
|
695 |
|
(58 |
) |
— |
|
700 |
|
Other long-term liabilities |
122 |
|
34 |
|
17 |
|
— |
|
173 |
|
Total liabilities |
5,885 |
|
316 |
|
1,826 |
|
— |
|
8,027 |
|
Equity: |
|
|
|
|
|
QVC, Inc. stockholder's equity |
6,710 |
|
5,861 |
|
547 |
|
(6,408 |
) |
6,710 |
|
Noncontrolling interest |
— |
|
— |
|
119 |
|
— |
|
119 |
|
Total equity |
6,710 |
|
5,861 |
|
666 |
|
(6,408 |
) |
6,829 |
|
Total liabilities and equity |
$ |
12,595 |
|
6,177 |
|
2,492 |
|
(6,408 |
) |
14,856 |
|
|
|
| Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Period |
Condensed Consolidating Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2019 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net revenue |
$ |
4,199 |
|
2,115 |
|
2,095 |
|
(890 |
) |
7,519 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold (exclusive of depreciation and amortization shown separately below) |
2,547 |
|
1,074 |
|
1,292 |
|
(110 |
) |
4,803 |
|
Operating |
304 |
|
291 |
|
208 |
|
(266 |
) |
537 |
|
Selling, general and administrative, including transaction related costs and stock-based compensation |
838 |
|
151 |
|
329 |
|
(514 |
) |
804 |
|
Depreciation |
47 |
|
26 |
|
70 |
|
— |
|
143 |
|
Amortization |
54 |
|
148 |
|
9 |
|
— |
|
211 |
|
|
3,790 |
|
1,690 |
|
1,908 |
|
(890 |
) |
6,498 |
|
Operating income |
409 |
|
425 |
|
187 |
|
— |
|
1,021 |
|
Other (expense) income: |
|
|
|
|
|
Equity in losses of investee |
— |
|
— |
|
(1 |
) |
— |
|
(1 |
) |
Losses on financial instruments |
(5 |
) |
— |
|
— |
|
— |
|
(5 |
) |
Interest (expense) income, net |
(179 |
) |
3 |
|
(6 |
) |
— |
|
(182 |
) |
Foreign currency gain (loss) |
1 |
|
— |
|
(4 |
) |
— |
|
(3 |
) |
Intercompany interest income (expense) |
22 |
|
29 |
|
(51 |
) |
— |
|
— |
|
|
(161 |
) |
32 |
|
(62 |
) |
— |
|
(191 |
) |
Income before income taxes |
248 |
|
457 |
|
125 |
|
— |
|
830 |
|
Income tax expense |
(83 |
) |
(89 |
) |
(66 |
) |
— |
|
(238 |
) |
Equity in earnings of subsidiaries, net of tax |
427 |
|
15 |
|
— |
|
(442 |
) |
— |
|
Net income |
592 |
|
383 |
|
59 |
|
(442 |
) |
592 |
|
Less net income attributable to the noncontrolling interest |
(36 |
) |
— |
|
(36 |
) |
36 |
|
(36 |
) |
Net income attributable to QVC, Inc. stockholder |
$ |
556 |
|
383 |
|
23 |
|
(406 |
) |
556 |
|
Condensed Consolidating Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2019 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net revenue |
$ |
1,389 |
|
707 |
|
705 |
|
(297 |
) |
2,504 |
|
Operating costs and expenses |
|
|
|
|
|
Cost of goods sold (exclusive of depreciation and amortization shown separately below) |
855 |
|
359 |
|
441 |
|
(40 |
) |
1,615 |
|
Operating |
100 |
|
99 |
|
71 |
|
(89 |
) |
181 |
|
Selling, general and administrative, including transaction related costs and stock-based compensation |
279 |
|
52 |
|
103 |
|
(168 |
) |
266 |
|
Depreciation |
16 |
|
8 |
|
19 |
|
— |
|
43 |
|
Amortization |
17 |
|
50 |
|
2 |
|
— |
|
69 |
|
|
1,267 |
|
568 |
|
636 |
|
(297 |
) |
2,174 |
|
Operating income |
122 |
|
139 |
|
69 |
|
— |
|
330 |
|
Other (expense) income: |
|
|
|
|
|
Losses on financial instruments |
(2 |
) |
— |
|
— |
|
— |
|
(2 |
) |
Interest (expense) income, net |
(59 |
) |
1 |
|
(3 |
) |
— |
|
(61 |
) |
Foreign currency gain (loss) |
2 |
|
— |
|
(2 |
) |
— |
|
— |
|
Intercompany interest income (expense) |
6 |
|
11 |
|
(17 |
) |
— |
|
— |
|
|
(53 |
) |
12 |
|
(22 |
) |
— |
|
(63 |
) |
Income before income taxes |
69 |
|
151 |
|
47 |
|
— |
|
267 |
|
Income tax expense |
(25 |
) |
(32 |
) |
(22 |
) |
— |
|
(79 |
) |
Equity in earnings of subsidiaries, net of tax |
144 |
|
10 |
|
— |
|
(154 |
) |
— |
|
Net income |
188 |
|
129 |
|
25 |
|
(154 |
) |
188 |
|
Less net income attributable to the noncontrolling interest |
(14 |
) |
— |
|
(14 |
) |
14 |
|
(14 |
) |
Net income attributable to QVC, Inc. stockholder |
$ |
174 |
|
129 |
|
11 |
|
(140 |
) |
174 |
|
|
|
| Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Period |
Condensed Consolidating Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2018 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net revenue |
$ |
1,459 |
|
744 |
|
701 |
|
(335 |
) |
2,569 |
|
Operating costs and expenses |
|
|
|
|
|
Cost of goods sold (exclusive of depreciation and amortization shown separately below) |
879 |
|
375 |
|
431 |
|
(48 |
) |
1,637 |
|
Operating |
109 |
|
132 |
|
70 |
|
(103 |
) |
208 |
|
Selling, general and administrative, including transaction related costs and stock-based compensation |
303 |
|
76 |
|
116 |
|
(184 |
) |
311 |
|
Depreciation |
16 |
|
9 |
|
18 |
|
— |
|
43 |
|
Amortization |
21 |
|
41 |
|
3 |
|
— |
|
65 |
|
|
1,328 |
|
633 |
|
638 |
|
(335 |
) |
2,264 |
|
Operating income |
131 |
|
111 |
|
63 |
|
— |
|
305 |
|
Other (expense) income: |
|
|
|
|
|
Equity in losses of investee |
— |
|
— |
|
(1 |
) |
— |
|
(1 |
) |
Loss on financial instruments |
— |
|
(1 |
) |
— |
|
— |
|
(1 |
) |
Interest (expense) income, net |
(57 |
) |
8 |
|
(1 |
) |
— |
|
(50 |
) |
Foreign currency loss |
— |
|
— |
|
(1 |
) |
— |
|
(1 |
) |
Intercompany interest (expense) income |
(8 |
) |
38 |
|
(30 |
) |
— |
|
— |
|
|
(65 |
) |
45 |
|
(33 |
) |
— |
|
(53 |
) |
Income before income taxes |
66 |
|
156 |
|
30 |
|
— |
|
252 |
|
Income tax expense |
(27 |
) |
(31 |
) |
(13 |
) |
— |
|
(71 |
) |
Equity in earnings of subsidiaries, net of tax |
142 |
|
4 |
|
— |
|
(146 |
) |
— |
|
Net income |
181 |
|
129 |
|
17 |
|
(146 |
) |
181 |
|
Less net income attributable to the noncontrolling interest |
(11 |
) |
— |
|
(11 |
) |
11 |
|
(11 |
) |
Net income attributable to QVC, Inc. stockholder |
$ |
170 |
|
129 |
|
6 |
|
(135 |
) |
170 |
|
|
Condensed Consolidating Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2018 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net revenue |
$ |
4,374 |
|
2,167 |
|
2,133 |
|
(947 |
) |
7,727 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold (exclusive of depreciation and amortization shown separately below) |
2,615 |
|
1,081 |
|
1,311 |
|
(125 |
) |
4,882 |
|
Operating |
308 |
|
381 |
|
214 |
|
(273 |
) |
630 |
|
Selling, general and administrative, including transaction related costs and stock-based compensation |
855 |
|
207 |
|
345 |
|
(549 |
) |
858 |
|
Depreciation |
49 |
|
27 |
|
54 |
|
— |
|
130 |
|
Amortization |
60 |
|
108 |
|
8 |
|
— |
|
176 |
|
|
3,887 |
|
1,804 |
|
1,932 |
|
(947 |
) |
6,676 |
|
Operating income |
487 |
|
363 |
|
201 |
|
— |
|
1,051 |
|
Other (expense) income: |
|
|
|
|
|
Equity in losses of investee |
— |
|
— |
|
(2 |
) |
— |
|
(2 |
) |
Interest expense, net |
(171 |
) |
(9 |
) |
(3 |
) |
— |
|
(183 |
) |
Foreign currency gain (loss) |
2 |
|
— |
|
(2 |
) |
— |
|
— |
|
Intercompany interest (expense) income |
(23 |
) |
114 |
|
(91 |
) |
— |
|
— |
|
|
(192 |
) |
105 |
|
(98 |
) |
— |
|
(185 |
) |
Income before income taxes |
295 |
|
468 |
|
103 |
|
— |
|
866 |
|
Income tax expense |
(87 |
) |
(93 |
) |
(49 |
) |
— |
|
(229 |
) |
Equity in earnings of subsidiaries, net of tax |
429 |
|
38 |
|
— |
|
(467 |
) |
— |
|
Net income |
637 |
|
413 |
|
54 |
|
(467 |
) |
637 |
|
Less net income attributable to the noncontrolling interest |
(33 |
) |
— |
|
(33 |
) |
33 |
|
(33 |
) |
Net income attributable to QVC, Inc. stockholder |
$ |
604 |
|
413 |
|
21 |
|
(434 |
) |
604 |
|
|
| Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Period |
Condensed Consolidating Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2019 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net income |
$ |
592 |
|
383 |
|
59 |
|
(442 |
) |
592 |
|
Foreign currency translation adjustments |
(28 |
) |
— |
|
(28 |
) |
28 |
|
(28 |
) |
Total comprehensive income |
564 |
|
383 |
|
31 |
|
(414 |
) |
564 |
|
Comprehensive income attributable to noncontrolling interest |
(38 |
) |
— |
|
(38 |
) |
38 |
|
(38 |
) |
Comprehensive income attributable to QVC, Inc. stockholder |
$ |
526 |
|
383 |
|
(7 |
) |
(376 |
) |
526 |
|
Condensed Consolidating Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2019 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net income |
$ |
188 |
|
129 |
|
25 |
|
(154 |
) |
188 |
|
Foreign currency translation adjustments, net of tax |
(36 |
) |
— |
|
(36 |
) |
36 |
|
(36 |
) |
Total comprehensive income |
152 |
|
129 |
|
(11 |
) |
(118 |
) |
152 |
|
Comprehensive income attributable to noncontrolling interest |
(13 |
) |
— |
|
(13 |
) |
13 |
|
(13 |
) |
Comprehensive income attributable to QVC, Inc. stockholder |
$ |
139 |
|
129 |
|
(24 |
) |
(105 |
) |
139 |
|
|
|
| Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Period |
Condensed Consolidating Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2018 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net income |
$ |
181 |
|
129 |
|
17 |
|
(146 |
) |
181 |
|
Foreign currency translation adjustments, net of tax |
(22 |
) |
— |
|
(22 |
) |
22 |
|
(22 |
) |
Total comprehensive income |
159 |
|
129 |
|
(5 |
) |
(124 |
) |
159 |
|
Comprehensive income attributable to noncontrolling interest |
(8 |
) |
— |
|
(8 |
) |
8 |
|
(8 |
) |
Comprehensive income attributable to QVC, Inc. stockholder |
$ |
151 |
|
129 |
|
(13 |
) |
(116 |
) |
151 |
|
|
Condensed Consolidating Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2018 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net income |
$ |
637 |
|
413 |
|
54 |
|
(467 |
) |
637 |
|
Foreign currency translation adjustments |
(48 |
) |
— |
|
(48 |
) |
48 |
|
(48 |
) |
Total comprehensive income |
589 |
|
413 |
|
6 |
|
(419 |
) |
589 |
|
Comprehensive income attributable to noncontrolling interest |
(32 |
) |
— |
|
(32 |
) |
32 |
|
(32 |
) |
Comprehensive income attributable to QVC, Inc. stockholder |
$ |
557 |
|
413 |
|
(26 |
) |
(387 |
) |
557 |
|
|
| Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Period |
Condensed Consolidating Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2019 |
|
(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 |
$ |
429 |
|
573 |
|
16 |
|
— |
|
1,018 |
|
Investing activities: |
|
|
|
|
|
Capital expenditures |
(92 |
) |
(47 |
) |
(86 |
) |
— |
|
(225 |
) |
Expenditures for television distribution rights |
— |
|
(128 |
) |
— |
|
— |
|
(128 |
) |
Changes in other noncurrent assets |
(10 |
) |
(1 |
) |
2 |
|
— |
|
(9 |
) |
Other investing activities |
— |
|
29 |
|
— |
|
— |
|
29 |
|
Intercompany investing activities |
77 |
|
(319 |
) |
— |
|
242 |
|
— |
|
Net cash used in investing activities |
(25 |
) |
(466 |
) |
(84 |
) |
242 |
|
(333 |
) |
Financing activities: |
|
|
|
|
|
Principal payments of debt and finance lease obligations |
(1,637 |
) |
— |
|
(11 |
) |
— |
|
(1,648 |
) |
Principal borrowings of debt from senior secured credit facility |
2,061 |
|
— |
|
— |
|
— |
|
2,061 |
|
Principal repayment of senior secured notes |
(400 |
) |
— |
|
— |
|
— |
|
(400 |
) |
Capital contribution received from Qurate Retail, Inc. |
50 |
|
— |
|
— |
|
— |
|
50 |
|
Dividends paid to Qurate Retail, Inc. |
(698 |
) |
— |
|
— |
|
— |
|
(698 |
) |
Dividends paid to noncontrolling interest |
— |
|
— |
|
(34 |
) |
— |
|
(34 |
) |
Other financing activities |
(4 |
) |
— |
|
— |
|
— |
|
(4 |
) |
Net short-term intercompany debt borrowings (repayments) |
205 |
|
(275 |
) |
70 |
|
— |
|
— |
|
Other intercompany financing activities |
(23 |
) |
239 |
|
26 |
|
(242 |
) |
— |
|
Net cash (used in) provided by financing activities |
(446 |
) |
(36 |
) |
51 |
|
(242 |
) |
(673 |
) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
— |
|
— |
|
(3 |
) |
— |
|
(3 |
) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
(42 |
) |
71 |
|
(20 |
) |
— |
|
9 |
|
Cash, cash equivalents and restricted cash, beginning of period |
78 |
|
192 |
|
280 |
|
— |
|
550 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
36 |
|
263 |
|
260 |
|
— |
|
559 |
|
|
|
| Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Period |
Condensed Consolidating Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2018 |
|
(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 |
$ |
484 |
|
369 |
|
62 |
|
— |
|
915 |
|
Investing activities: |
|
|
|
|
|
Capital expenditures |
(68 |
) |
(14 |
) |
(54 |
) |
— |
|
(136 |
) |
Expenditures for television distribution rights |
— |
|
(119 |
) |
(1 |
) |
— |
|
(120 |
) |
Other investing activities |
— |
|
(25 |
) |
— |
|
— |
|
(25 |
) |
Changes in other noncurrent assets |
2 |
|
— |
|
(1 |
) |
— |
|
1 |
|
Intercompany investing activities |
233 |
|
(552 |
) |
— |
|
319 |
|
— |
|
Net cash provided by (used in) investing activities |
167 |
|
(710 |
) |
(56 |
) |
319 |
|
(280 |
) |
Financing activities: |
|
|
|
|
|
Principal payments of debt and capital lease obligations |
(2,277 |
) |
(351 |
) |
(8 |
) |
— |
|
(2,636 |
) |
Principal borrowings of debt from senior secured credit facility |
1,451 |
|
280 |
|
— |
|
— |
|
1,731 |
|
Proceeds from issuance of senior secured notes |
225 |
|
— |
|
— |
|
— |
|
225 |
|
Payment of debt origination fees |
(8 |
) |
— |
|
— |
|
— |
|
(8 |
) |
Capital contributions received from Qurate Retail, Inc. |
340 |
|
180 |
|
— |
|
— |
|
520 |
|
Dividends paid to Qurate Retail, Inc. |
(297 |
) |
— |
|
— |
|
— |
|
(297 |
) |
Dividends paid to noncontrolling interest |
— |
|
— |
|
(23 |
) |
— |
|
(23 |
) |
Other financing activities |
(10 |
) |
(8 |
) |
— |
|
— |
|
(18 |
) |
Net short-term intercompany debt (repayments) borrowings |
(15 |
) |
(16 |
) |
31 |
|
— |
|
— |
|
Other intercompany financing activities |
(17 |
) |
313 |
|
23 |
|
(319 |
) |
— |
|
Net cash (used in) provided by financing activities |
(608 |
) |
398 |
|
23 |
|
(319 |
) |
(506 |
) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
— |
|
— |
|
(2 |
) |
— |
|
(2 |
) |
Net increase in cash, cash equivalents and restricted cash |
43 |
|
57 |
|
27 |
|
— |
|
127 |
|
Cash, cash equivalents and restricted cash, beginning of period |
7 |
|
55 |
|
228 |
|
— |
|
290 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
50 |
|
112 |
|
255 |
|
— |
|
417 |
|
|
|