Quarterly report [Sections 13 or 15(d)]

Goodwill and Intangibles

v3.25.3
Goodwill and Intangibles
 9 Months Ended
Sep. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure Intangible Assets
The changes in the carrying amount of goodwill by operating segment for the nine months ended September 30, 2025 were as follows:
(in millions) QxH QVC-Int'l Total
Balance as of December 31, 2024 $ 1,465  739  2,204 
Impairment (1,465) —  (1,465)
Exchange rate fluctuations —  69  69 
Balance as of September 30, 2025 $ —  808  808 
Other intangible assets consisted of the following:
September 30, 2025 December 31, 2024
(in millions) Gross
cost		 Accumulated
amortization		 Intangible assets subject to amortization, net Gross
cost		 Accumulated
amortization		 Intangible assets subject to amortization, net
Purchased and internally developed software $ 1,174  (959) 215  1,094  (852) 242 
Affiliate and customer relationships 2,834  (2,776) 58  2,816  (2,722) 94 
Television distribution rights 541  (455) 86  535  (489) 46 
Debt origination fees 9  (7) 2  9  (6) 3 
Intangible assets subject to amortization $ 4,558  (4,197) 361  4,454  (4,069) 385 
Tradenames (indefinite life) $ 1,190  1,190  2,120  2,120 
The Company recorded amortization expense of $62 million and $68 million for the three months ended September 30, 2025 and 2024, respectively, related to intangible assets with finite useful lives. For the nine months ended September 30, 2025 and 2024, amortization expense related to intangible assets with finite useful lives was $190 million and $209 million, respectively.
As of September 30, 2025, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions):
Remainder of 2025 $ 80 
2026 200 
2027 58 
2028 22 
2029 1 
As a result of recent financial performance, macroeconomic conditions, declines in stock price and credit rating downgrades, it was determined during the second quarter of 2025 that an indication of impairment existed for the QxH reporting unit related to the QVC and HSN tradenames and goodwill. The fair value of the tradenames was determined using the relief from royalty method, primarily using a discounted cash flow model using projections of future operating performance (income approach) and applying a royalty rate (market approach) (Level 3), and an impairment in the amount of $930 million for the QVC and HSN tradenames was recorded during the second quarter of 2025, in impairment of goodwill and intangible assets in the consolidated statements of operations. The fair value of the QxH reporting unit was determined using a discounted cash flow method (Level 3), and a goodwill impairment in the amount of $1,465 million was recorded during the second quarter of 2025 in impairment of goodwill and intangible assets in the consolidated statements of operations, reducing carrying value to fair value. The Company utilized the assistance of a third party specialist when determining the above noted fair values.
The Company had accumulated goodwill impairment losses of $5,113 million attributed to the QxH reporting unit as of September 30, 2025.