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

Leases

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Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
The Company has lease agreements with transponder and transmitter network suppliers for the right to transmit its signals. QVC also has leases for data processing equipment, facilities, office space and land that are classified as operating leases. Our leases have remaining lease terms of less than 1 year to 17 years, some of which may include the option to extend or terminate the leases.

The components of lease cost for the years ended December 31, 2025, 2024 and 2023, were as follows:
Year ended December 31,
(in millions) 2025 2024 2023
Operating lease cost (1) $ 124  124  121 
(1) Included within operating lease costs were short-term lease costs and variable lease costs, which were not material to the financial statements.
The remaining weighted-average lease term and the weighted-average discount rate were as follows:
December 31, 2025 December 31, 2024 December 31, 2023
Weighted-average remaining lease term (years):
     Operating leases 12.0 12.6 13.5
Weighted-average discount rate:
     Operating leases 14.4  % 14.2  % 14.1  %
Supplemental balance sheet information related to leases was as follows:
December 31,
(in millions) 2025 2024
Operating Leases:
  Operating lease right-of-use assets $ 461  482 
  Accrued liabilities 27  27 
  Other long-term liabilities 460  475 
      Total operating lease liabilities $ 487  502 
Supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023, was as follows:
Year ended December 31,
(in millions) 2025 2024 2023
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows for operating leases $ 93  87  90 
Right-of-use assets obtained in exchange for lease obligations:
      Operating leases $ 1  15  133 
    
Future payments under noncancelable operating leases with initial terms of one year or more as of December 31, 2025 consisted of the following:    
(in millions) Operating leases
2026 $ 88 
2027 87 
2028 87 
2029 88 
2030 89 
Thereafter 631 
Total lease payments $ 1,070 
Less: imputed interest (583)
Total lease liabilities $ 487 
Sale-Leaseback Transactions
In November 2022, QVC-International entered into agreements to sell two properties located in Germany and the U.K. to an independent third party. Under the terms of the agreements, QVC received net cash proceeds of $182 million related to its German and U.K. facilities when the sales closed in January 2023. Concurrent with the sale, the Company entered into agreements to lease each of the properties back from the purchaser over an initial term of 20 years with the option to extend the terms of the property leases for up to four consecutive terms of five years. QVC recognized a $113 million gain related to the successful sale leaseback of the German and U.K. properties, during the first quarter of 2023 calculated as the difference between the aggregate consideration received and the carrying value of the properties. The Company accounted for the leases as operating leases and recorded $74 million of right-of-use assets and operating lease liabilities for the German and U.K. properties.

In December 2023, QVC modified the lease for its distribution center in Ontario, California pursuant to which QVC extended the term of the lease through December 31, 2030 with an option to renew the lease for an additional 3-year term ending December 31, 2033.