QVC Group, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Intangible Assets

Intangible Assets

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill by operating segment for the years ended December 31, 2025 and 2024 were as follows:


(in millions)	QxH		QVC-International	Total
Balance as of December 31, 2023	$	2,367	784	3,151
Impairment	(902)		—	(902)
Exchange rate fluctuations	—		(45)	(45)
Balance as of December 31, 2024	1,465		739	2,204
Impairment	(1,465)		—	(1,465)
Exchange rate fluctuations	—		61	61
Balance as of December 31, 2025	$	—	800	800

Other intangible assets consisted of the following:


	December 31, 2025				December 31, 2024
(in millions)	Gross cost		Accumulated amortization	Intangible assets, net	Gross cost	Accumulated amortization	Intangible assets, net	Weighted average remaining life (years)
Purchased and internally developed software	$	1,116	(917)	199	1,094	(852)	242	2
Affiliate and customer relationships	2,835		(2,788)	47	2,816	(2,722)	94	1
Television distribution rights	161		(93)	68	535	(489)	46	1
Debt origination fees	9		(8)	1	9	(6)	3	1
Intangible assets subject to amortization	$	4,121	(3,806)	315	4,454	(4,069)	385
Tradenames (indefinite life)	$	1,190		1,190	2,120		2,120	N/A

N/A - Not applicable.

As of December 31, 2025, the related amortization and interest expense for each of the next five years ending December 31 was as follows (in millions):


2026	$	214
2027	69
2028	30
2029	2
2030	—

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 including goodwill and the QVC and HSN tradenames. 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 of $930 million for the QVC and HSN tradenames was recorded in impairment of intangible assets in the consolidated statements of operations for the year ended December 31, 2025. 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 in impairment of goodwill in the consolidated statements of operations. The Company utilized the assistance of a third party specialist when determining the above noted fair values for all years.

The Company had accumulated goodwill impairment losses of $5,113 million attributed to the QxH reporting unit as of December 31, 2025.

During prior years, indications of impairment existed for the QxH reporting unit including goodwill and the QVC and HSN tradenames. 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 $578 million for the QVC and HSN tradenames, was recorded during the fourth quarter of 2024, in impairment of 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 impairments in the amounts of $902 million and $326 million for QxH were recorded, in 2024 and 2023, respectively, in impairment of goodwill in the consolidated statements of operations. The Company utilized the assistance of a third party specialist when determining the above noted fair values.