QVC Group, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

In accordance with the new revenue standard requirements adopted as of January 1, 2018, the impact of adoption on our condensed consolidated statements of operations was as follows:



Statements of Operations	Year ended December 31, 2018
(in millions)	As Reported		Balances Without Adoption of ASC 606	Effect of Change Increase/(Decrease)
Net revenue	$	11,282	11,143	139

Costs and expenses:
Cost of goods sold (exclusive of depreciation and amortization)	7,248		7,238	10
Operating	881		879	2
Selling, general and administrative, including transaction related costs and stock-based compensation	1,200		1,082	118

Income tax expense	334		332	2

Net income	$	928	921	7

Summary of activity in allowance for sales returns

A summary of activity in the allowance for sales returns, recorded on a gross basis for the years ended December 31, 2019 and 2018 and recorded on a net margin basis for the year ended December 31, 2017, was as follows:



(in millions)	Balance beginning of year		Additions- charged to earnings	Deductions		Transfer of HSN reserve	Balance end of year
2019	$	242	2,138	(2,142	)	—	238
2018	243		2,213	(2,214	)	—	242
2017	93		982	(979	)	23	119