Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.3.a.u2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]
In accordance with the new revenue standard requirements adopted as of January 1, 2018, the impact of adoption on our condensed consolidated statements of operations was as follows:
Statements of Operations
Year ended December 31, 2018
 
(in millions)
As Reported
Balances Without Adoption of ASC 606
Effect of Change Increase/(Decrease)
Net revenue
$
11,282

11,143

139

 
 
 
 
Costs and expenses:
 
 
 
Cost of goods sold (exclusive of depreciation and amortization)
7,248

7,238

10

Operating
881

879

2

Selling, general and administrative, including transaction related costs and stock-based compensation
1,200

1,082

118

 
 
 
 
Income tax expense
334

332

2

 
 
 
 
Net income
$
928

921

7

Summary of activity in allowance for sales returns
A summary of activity in the allowance for sales returns, recorded on a gross basis for the years ended December 31, 2019 and 2018 and recorded on a net margin basis for the year ended December 31, 2017, was as follows:
(in millions)
Balance
beginning
of year

Additions-
charged
to earnings

Deductions

Transfer of HSN reserve

Balance
end of
year

2019
$
242

2,138

(2,142
)
—

238

2018
243

2,213

(2,214
)
—

242

2017
93

982

(979
)
23

119