Stock-Based Compensation |
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| Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | Stock-Based Compensation Certain QVC employees and officers may receive stock options ("Options"), performance restricted stock units (“PSUs”), and restricted stock units ("RSUs") in Series A QVC Group common stock (“QVCGA” and prior to QVC Group’s name change, “QRTEA”) in accordance with QVC Group's Incentive Plan (the "QVC Group Incentive Plan"). The cost of employee services received in exchange for an equity classified Award (such as stock options) is measured based on the grant-date fair value (“GDFV”) of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The cost of employee services received in exchange for a liability classified Award is measured based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date.
On May 22, 2025, QVC Group filed an amendment to its Restated Certificate of Incorporation (the “Charter Amendment”) with the Secretary of State of the State of Delaware to effect a reverse stock split of QVCGA and Series B common stock, par value $0.01 per share, at a ratio of 1-for-50 (the “Reverse Stock Split”). In connection with the Reverse Stock Split, each QVCGA RSU, PSU and deferred stock unit (“DSU”) outstanding immediately prior to the effective time:
1.was divided by the ratio of 1-for-50 and rounded down to the nearest whole RSU, PSU or DSU, and
2.cash was issued in lieu of fractional RSUs, PSUs or DSUs.
Also in connection with the Reverse Stock Split, each QVCGA and QVCGB stock option and stock appreciation right (“SAR”) outstanding immediately prior to the effective time:
1.was divided by the ratio of 1-for-50 and rounded down to the nearest whole stock option or SAR, and
2.the corresponding exercise price was multiplied by the ratio of 1-for-50 and rounded up to the nearest cent.
All other terms and restrictions of the RSUs, PSUs, DSUs, stock option and SARs, including, for example, the vesting terms, and for stock options and SARs, the expiration date, are the same as those applicable to the corresponding original RSUs, PSUs, DSUs, stock option and SARs
Grant of Awards
During the three months ended March 31, 2025, and in connection with his employment agreement, QVC granted a $15 million performance cash award to Mr. Rawlinson. Prior to the subsequent modification of the award during the third quarter of 2025, such performance cash award vested annually over three years, subject to the satisfaction of certain performance objectives. See discussion below for modification during 2025 to the performance cash award granted to Mr. Rawlinson.
Outstanding Awards
A summary of the activity of the QVC Group Incentive Plans with respect to the QVCGA Options granted to QVC employees and officers as of and during the year ended December 31, 2025 is presented below:
Upon employee exercise of the Options, the exercise price is remitted to QVC Group in exchange for the shares. There were no options exercised during the years ended December 31, 2025 and 2024. The fair value of the Options is recognized as expense over the requisite service period.
The expense related to the Options recorded by the Company during each of the years ended December 31, 2025, 2024 and 2023, was immaterial.
A summary of the activity of the QVC Group Incentive Plans with respect to the stock-settled RSUs granted to QVC employees and officers as of and during the year ended December 31, 2025 is presented below:
(1)All of the QVCGA stock-settled RSUs granted during 2025 were modified and canceled during the twelve months ended December 31, 2025. See discussion below.
A summary of the activity of the QVC Group Incentive Plans with respect to the cash-settled RSUs and PSUs granted to QVC employees and officers as of and during the year ended December 31, 2025 is presented below:
(1)All of the QVCGA cash-settled RSUs granted during 2025 were modified and canceled during the twelve months ended December 31, 2025. See discussion below.
For cash-settled RSUs, the liability and compensation expense related to such awards is adjusted at the end of each reporting period based on the closing market price of QVCGA on the last trading day of the quarter.
For awards that are performance-based, performance objectives, which are subjective, are considered in determining the timing and amount of compensation expense recognized. When the satisfaction of the performance objectives becomes probable, the Company records compensation expense. The probability of satisfying the performance objectives is assessed at the end of each reporting period.
During the years ended December 31, 2025, 2024 and 2023, the Company recorded $15 million, $18 million and $32 million, respectively, of stock-based compensation expense related to these awards. As of December 31, 2025, the total unrecognized compensation cost related to unvested RSUs of common stock and cash settled RSUs was immaterial.
Fair value of RSUs is calculated based on the market price on the day the shares are granted. The weighted average grant date fair value of the QVCGA RSUs granted to QVC employees and officers during the years ended December 31, 2025, 2024 and 2023, was $14.00, $61.47, and $63.50, respectively.
Revised Compensation Structure
During the year ended December 31, 2025, the Board and the Compensation Committee of the Board implemented a revised compensation structure for the Company. As a part of this revised compensation structure, certain officers, employees and directors of the Company were paid an aggregate of approximately $55 million in exchange primarily for (1) cancellation of their 2025 RSU grants, as well as a partial cancellation of certain PSU grants (2) advance payments of the 2025 management bonus plan and (3) for certain officers, advance payments of long term incentive awards and management bonus plans that would have been granted in 2026. These advance payments, with respect to certain officers of the Company, will be subject to repayment on an after-tax basis, if certain employment and, as applicable, performance conditions are not satisfied. Those awards subject to repayment have been classified within other current assets and other noncurrent assets and will be expensed over the relevant service period.
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