Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Components of Income Tax Expense |
Income tax expense consisted of the following:
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Years ended December 31, |
| (in millions) |
2025 |
2024 |
2023 |
| Current: |
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|
| U.S. Federal |
$ |
(1) |
|
(126) |
|
(72) |
|
| State and local |
3 |
|
(24) |
|
6 |
|
| Foreign |
(71) |
|
(78) |
|
(84) |
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| Total |
(69) |
|
(228) |
|
(150) |
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| Deferred: |
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| U.S. Federal |
187 |
|
189 |
|
(21) |
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| State and local |
38 |
|
39 |
|
(7) |
|
| Foreign |
(3) |
|
(3) |
|
(27) |
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| Total |
222 |
|
225 |
|
(55) |
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| Income tax benefit (expense) |
$ |
153 |
|
(3) |
|
(205) |
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| Schedule of Pre-Tax Income (Loss) |
Pre-tax income (loss) was as follows:
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Years ended December 31, |
| (in millions) |
2025 |
2024 |
2023 |
| QxH |
$ |
(2,454) |
|
(1,253) |
|
114 |
|
| QVC-International |
174 |
|
234 |
|
302 |
|
| Consolidated QVC |
$ |
(2,280) |
|
(1,019) |
|
416 |
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| Schedule of Effective Income Tax Rate Reconciliation |
Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 21% in 2025, 2024 and 2023, as a result of the following:
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Year ended December 31, 2025 |
|
amounts in millions |
percent |
| US Federal statutory income tax rate |
$ |
479 |
|
21.0 |
% |
| Domestic federal |
|
|
| Tax Credits |
5 |
0.2% |
| Nontaxable and non-deductible items, net |
|
|
| Goodwill impairment |
(308) |
(13.5)% |
| Other nondeductible items |
(9) |
(0.4)% |
| Cross-border tax laws |
(23) |
(1.0)% |
| Other |
(1) |
(0.1)% |
| Domestic state and local income taxes, net of federal tax effect (1) |
25 |
1.1% |
| Foreign tax effects |
(14) |
(0.6)% |
| Worldwide changes in unrecognized tax benefits |
(1) |
—% |
| Total tax benefit (expense) |
$ |
153 |
|
6.7 |
% |
(1) The following jurisdictions make up greater than 50% of the state income tax expense for 2025: Delaware, Florida, Illinois, Massachusetts, New York and Pennsylvania.
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Years ended December 31, |
|
2024 |
2023 |
| Provision at statutory rate |
$ |
(214) |
|
87 |
| State income taxes, net of federal benefit |
(12) |
|
1 |
| Foreign taxes |
16 |
|
24 |
| Goodwill impairment |
189 |
|
68 |
| Foreign net operating losses |
(245) |
|
— |
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| Valuation allowance |
243 |
|
7 |
| Tax on foreign earnings, net of federal tax benefits |
20 |
|
6 |
| Other permanent differences |
5 |
|
12 |
| Other, net |
1 |
|
— |
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| Total income tax expense |
$ |
3 |
|
205 |
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| Schedule of Deferred Income Tax Assets and Liabilities |
The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:
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December 31, |
| (in millions) |
2025 |
2024 |
| Deferred tax assets: |
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| Trade and other receivables, principally due to the allowance for credit losses and related reserves for the uncollectible accounts |
$ |
15 |
|
18 |
|
Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986 |
37 |
|
37 |
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Allowance for sales returns |
15 |
|
19 |
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Deferred revenue |
27 |
|
43 |
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| Debt - Original Issuance Discount (OID) |
21 |
|
26 |
|
Deferred compensation |
10 |
|
13 |
|
Unrecognized federal and state tax benefits |
7 |
|
9 |
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| Foreign net operating loss and other carryforwards |
409 |
|
362 |
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Foreign tax credits carryforward |
56 |
|
57 |
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Lease obligations |
121 |
|
123 |
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Cumulative translation of foreign currencies |
5 |
|
6 |
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Accrued liabilities |
9 |
|
15 |
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Subtotal |
732 |
|
728 |
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Valuation allowance |
(436) |
|
(420) |
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Total deferred tax assets |
296 |
|
308 |
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| Deferred tax liabilities: |
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Depreciation and amortization |
(331) |
|
(556) |
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Lease assets |
(114) |
|
(117) |
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Other |
(2) |
|
(4) |
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Total deferred tax liabilities |
(447) |
|
(677) |
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Net deferred tax liability |
$ |
(151) |
|
(369) |
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| Schedule of Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the 2024 and 2025 beginning and ending amount of the liability for unrecognized tax benefits is as follows:
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| (in millions) |
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| Balance at January 1, 2024 |
$ |
47 |
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| Increases related to prior year tax positions |
1 |
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| Decreases related to prior year tax positions |
(8) |
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| Decreases related to settlements with taxing authorities |
— |
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| Increases related to current year tax positions |
2 |
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| Balance at December 31, 2024 |
42 |
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| Increases related to prior year tax positions |
9 |
|
| Decreases related to prior year tax positions |
(10) |
|
| Decreases related to settlements with taxing authorities |
— |
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| Increases related to current year tax positions |
— |
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| Balance at December 31, 2025 |
$ |
41 |
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| Schedule of Income Taxes Paid |
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Years ended December 31, |
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2025
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|
2024 |
2023 |
|
amounts in millions |
| Cash paid for interest |
$ |
292 |
|
259 |
|
271 |
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| Cash paid for income taxes, net-to QVC Group, Inc. |
$ |
44 |
|
173 |
|
11 |
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| Cash paid for income taxes, net-other |
$ |
76 |
|
87 |
|
89 |
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The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows:
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December 31, |
|
2025 |
2024 |
|
amounts in millions |
| Cash and cash equivalents |
$ |
1,496 |
|
297 |
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| Restricted cash included in other current assets |
61 |
|
18 |
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| Total cash, cash equivalents and restricted cash in the consolidated statement of cash flows |
$ |
1,557 |
|
315 |
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Income taxes paid during 2025 by taxing jurisdiction are as follows:
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Year ended December 31, 2025 |
|
amounts in millions |
| US Federal |
$ |
35 |
|
| US state and local |
15 |
| Foreign |
|
| Japan |
51 |
| Other |
19 |
| Total |
$ |
120 |
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