Qurate Retail, Inc. Registration of securities issued in business combination transactions

Registration of securities issued in business combination transactions

Guarantor/Non-Guarantor Subsidiary Financial Information (Tables)

Guarantor/Non-Guarantor Subsidiary Financial Information (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Guarantor Non-guarantor Subsidiary Financial Information [Abstract]

Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Year

Condensed consolidating balance sheets



June 30, 2014
(in millions)	Parent issuer- QVC, Inc.		Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Assets
Current assets:
Cash and cash equivalents	$	18	162		368		—		548
Restricted cash	11		—		3		—		14
Accounts receivable, net	490		—		266		—		756
Inventories	725		—		264		—		989
Deferred income taxes	147		—		18		—		165
Prepaid expenses	28		—		29		—		57
Total current assets	1,419		162		948		—		2,529
Property and equipment, net	253		66		757		—		1,076
Cable and satellite television distribution rights, net	—		441		99		—		540
Goodwill	4,169		—		1,041		—		5,210
Other intangible assets, net	1,092		2,049		102		—		3,243
Other noncurrent assets	9		—		60		—		69
Investments in subsidiaries	4,893		1,601		—		(6,494	)	—
Total assets	$	11,835	4,319		3,007		(6,494	)	12,667
Liabilities and equity
Current liabilities:
Current portion of debt and capital lease obligations	$	2	—		9		—		11
Accounts payable-trade	275		—		195		—		470
Accrued liabilities	150		86		507		—		743
Intercompany accounts payable (receivable)	1,084		(814	)	(270	)	—		—
Total current liabilities	1,511		(728	)	441		—		1,224
Long-term portion of debt and capital lease obligations	3,886		—		51		—		3,937
Deferred compensation	14		—		—		—		14
Deferred income taxes	319		901		3		—		1,223
Other long-term liabilities	109		—		48		—		157
Total liabilities	5,839		173		543		—		6,555
Equity:
QVC, Inc. stockholder's equity	5,996		4,146		2,348		(6,494	)	5,996
Noncontrolling interest	—		—		116		—		116
Total equity	5,996		4,146		2,464		(6,494	)	6,112
Total liabilities and equity	$	11,835	4,319		3,007		(6,494	)	12,667

Consolidating balance sheets

	December 31, 2013

(in millions)	Parent issuer— QVC, Inc.		Combined subsidiary guarantors			Combined non-guarantor subsidiaries			Eliminations			Consolidated— QVC, Inc. and subsidiaries
Assets
Current assets:
Cash and cash equivalents	$	78		133			246			—			457
Restricted cash		11		—			3			—			14
Accounts receivable, net		816		—			295			—			1,111
Inventories		684		—			247			—			931
Deferred income taxes		146		—			16			—			162
Prepaid expenses		20		—			27			—			47


Total current assets		1,755		133			834			—			2,722
Property, plant and equipment, net		265		67			774			—			1,106
Cable and satellite television distribution rights, net		—		510			114			—			624
Goodwill		4,169		—			1,028			—			5,197
Other intangible assets, net		1,128		2,050			158			—			3,336
Other noncurrent assets		8		—			63			—			71
Investments in subsidiaries		4,894		1,628			—			(6,522	)		—


Total assets	$	12,219		4,388			2,971			(6,522	)		13,056


Liabilities and equity
Current liabilities:
Current portion of debt and capital lease obligations	$	2		—			11			—			13
Accounts payable—trade		266		—			159			—			425
Accrued liabilities		463		96			470			—			1,029
Intercompany accounts payable (receivable)		1,019		(879	)		(140	)		—			—


Total current liabilities		1,750		(783	)		500			—			1,467
Long-term portion of debt and capital lease obligations		3,745		—			55			—			3,800
Deferred compensation		13		—			1			—			14
Deferred income taxes		399		923			4			—			1,326
Other long-term liabilities		90		—			18			—			108


Total liabilities		5,997		140			578			—			6,715


Equity:
QVC, Inc. shareholder's equity		6,222		4,248			2,274			(6,522	)		6,222
Noncontrolling interest		—		—			119			—			119


Total equity		6,222		4,248			2,393			(6,522	)		6,341


Total liabilities and equity	$	12,219		4,388			2,971			(6,522	)		13,056

Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Year

Condensed consolidating balance sheets



December 31, 2013
(in millions)	Parent issuer- QVC, Inc.		Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Assets
Current assets:
Cash and cash equivalents	$	78	133		246		—		457
Restricted cash	11		—		3		—		14
Accounts receivable, net	816		—		295		—		1,111
Inventories	684		—		247		—		931
Deferred income taxes	146		—		16		—		162
Prepaid expenses	20		—		27		—		47
Total current assets	1,755		133		834		—		2,722
Property and equipment, net	265		67		774		—		1,106
Cable and satellite television distribution rights, net	—		510		114		—		624
Goodwill	4,169		—		1,028		—		5,197
Other intangible assets, net	1,128		2,050		158		—		3,336
Other noncurrent assets	8		—		63		—		71
Investments in subsidiaries	4,894		1,628		—		(6,522	)	—
Total assets	$	12,219	4,388		2,971		(6,522	)	13,056
Liabilities and equity
Current liabilities:
Current portion of debt and capital lease obligations	$	2	—		11		—		13
Accounts payable-trade	336		—		158		—		494
Accrued liabilities	393		96		471		—		960
Intercompany accounts payable (receivable)	1,019		(879	)	(140	)	—		—
Total current liabilities	1,750		(783	)	500		—		1,467
Long-term portion of debt and capital lease obligations	3,745		—		55		—		3,800
Deferred compensation	13		—		1		—		14
Deferred income taxes	399		923		4		—		1,326
Other long-term liabilities	90		—		18		—		108
Total liabilities	5,997		140		578		—		6,715
Equity:
QVC, Inc. stockholder's equity	6,222		4,248		2,274		(6,522	)	6,222
Noncontrolling interest	—		—		119		—		119
Total equity	6,222		4,248		2,393		(6,522	)	6,341
Total liabilities and equity	$	12,219	4,388		2,971		(6,522	)	13,056

Consolidating balance sheets—Adjusted

	December 31, 2012

(in millions)	Parent issuer— QVC, Inc.		Combined subsidiary guarantors			Combined non-guarantor subsidiaries			Eliminations			Consolidated— QVC, Inc. and subsidiaries
Assets
Current assets:
Cash and cash equivalents	$	75		165			300			—			540
Restricted cash		13		—			2			—			15
Accounts receivable, net		747		—			308			—			1,055
Inventories		691		—			218			—			909
Deferred income taxes		131		—			20			—			151
Prepaid expenses		19		—			34			—			53


Total current assets		1,676		165			882			—			2,723
Property, plant and equipment, net		247		67			817			—			1,131
Cable and satellite television distribution rights, net		—		618			146			—			764
Goodwill		4,169		—			1,065			—			5,234
Other intangible assets, net		1,280		2,049			180			—			3,509
Other noncurrent assets		14		—			63			—			77
Investments in subsidiaries		4,844		1,838			—			(6,682	)		—


Total assets	$	12,230		4,737			3,153			(6,682	)		13,438




Liabilities and equity
Current liabilities:
Current portion of debt and capital lease obligations	$	2		—			10			—			12
Accounts payable—trade		324		—			242			—			566
Accrued liabilities		402		106			447			—			955
Intercompany accounts payable (receivable)		829		(816	)		(13	)		—			—


Total current liabilities		1,557		(710	)		686			—			1,533
Long-term portion of debt and capital lease obligations		3,404		—			61			—			3,465
Deferred compensation		11		—			1			—			12
Deferred income taxes		431		964			15			—			1,410
Other long-term liabilities		137		17			30			—			184


Total liabilities		5,540		271			793			—			6,604


Equity:
QVC, Inc. shareholder's equity		6,690		4,466			2,216			(6,682	)		6,690
Noncontrolling interest		—		—			144			—			144


Total equity		6,690		4,466			2,360			(6,682	)		6,834


Total liabilities and equity	$	12,230		4,737			3,153			(6,682	)		13,438

Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Year

Condensed consolidating statements of operations



Six months ended June 30, 2014
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net revenue	$	2,692		364		1,399		(455	)	4,000
Cost of goods sold	1,692			48		878		(112	)	2,506
Gross profit	1,000			316		521		(343	)	1,494
Operating expenses:
Operating	82			95		181		—		358
Selling, general and administrative, including stock-based compensation	466			(1	)	181		(343	)	303
Depreciation	19			3		44		—		66
Amortization	110			77		36		—		223
Intercompany management expense (income)	40			(8	)	(32	)	—		—
	717			166		410		(343	)	950
Operating income	283			150		111		—		544
Other (expense) income:
Equity in losses of investee	—			—		(3	)	—		(3	)
Interest expense, net	(113		)	—		(9	)	—		(122	)
Foreign currency (loss) gain	(3		)	—		3		—		—
Intercompany interest and other (expense) income	(10		)	26		4		(20	)	—
	(126		)	26		(5	)	(20	)	(125	)
Income before income taxes	157			176		106		(20	)	419
Income tax expense	(7		)	(52	)	(98	)	—		(157	)
Equity in earnings (losses) of subsidiaries, net of tax	112			(19	)	—		(93	)	—
Net income	262			105		8		(113	)	262
Less net income attributable to the noncontrolling interest	(19		)	—		(19	)	19		(19	)
Net income (loss) attributable to QVC, Inc. stockholder	$	243		105		(11	)	(94	)	243

Condensed consolidating statements of operations



Three months ended June 30, 2014
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net revenue	$	1,368		187		692		(233	)	2,014
Cost of goods sold	850			23		432		(55	)	1,250
Gross profit	518			164		260		(178	)	764
Operating expenses:
Operating	42			49		89		—		180
Selling, general and administrative, including stock-based compensation	243			1		89		(178	)	155
Depreciation	10			1		22		—		33
Amortization	58			38		16		—		112
Intercompany management expense (income)	20			(5	)	(15	)	—		—
	373			84		201		(178	)	480
Operating income	145			80		59		—		284
Other (expense) income:
Equity in losses of investee	—			—		(2	)	—		(2	)
Interest expense, net	(60		)	—		—		—		(60	)
Foreign currency (loss) gain	(1		)	—		2		—		1
Intercompany interest and other (expense) income	(5		)	13		12		(20	)	—
	(66		)	13		12		(20	)	(61	)
Income before income taxes	79			93		71		(20	)	223
Income tax expense	(27		)	(28	)	(28	)	—		(83	)
Equity in earnings of subsidiaries, net of tax	88			29		—		(117	)	—
Net income	140			94		43		(137	)	140
Less net income attributable to the noncontrolling interest	(10		)	—		(10	)	10		(10	)
Net income attributable to QVC, Inc. stockholder	$	130		94		33		(127	)	130

Consolidating statements of operations



Year ended December, 2013
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net revenue	$	5,914		841		2,914		(1,046	)	8,623
Cost of goods sold	3,804			107		1,831		(277	)	5,465
Gross profit	2,110			734		1,083		(769	)	3,158
Operating expenses:
Operating	168			214		358		—		740
Selling, general and administrative, including stock-based compensation	1,028			—		356		(769	)	615
Depreciation	38			6		83		—		127
Amortization of intangible assets	204			146		81		—		431
Intercompany management expense (income)	50			1		(51	)	—		—
	1,488			367		827		(769	)	1,913
Operating income	622			367		256		—		1,245
Other (expense) income:
Equity in losses of investee	—			—		(4	)	—		(4	)
Gains on financial instruments	12			—		3		—		15
Interest expense, net	(214		)	—		—		—		(214	)
Foreign currency (loss) gain	(13		)	—		14		—		1
Loss on extinguishment of debt	(57		)	—		—		—		(57	)
Intercompany interest (expense) income	(16		)	51		(35	)	—		—
	(288		)	51		(22	)	—		(259	)
Income before income taxes	334			418		234		—		986
Income tax expense	(119		)	(132	)	(102	)	—		(353	)
Equity in earnings of subsidiaries, net of tax	418			67		—		(485	)	—
Net income	633			353		132		(485	)	633
Less net income attributable to the noncontrolling interest	(45		)	—		(45	)	45		(45	)
Net income attributable to QVC, Inc. shareholder	$	588		353		87		(440	)	588

Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Year

Condensed consolidating statements of operations - Adjusted



Three months ended June 30, 2013
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net revenue	$	1,326		182		681		(228	)	1,961
Cost of goods sold	836			23		427		(59	)	1,227
Gross profit	490			159		254		(169	)	734
Operating expenses:
Operating	38			48		85		—		171
Selling, general and administrative, including stock-based compensation	227			—		80		(169	)	138
Depreciation	9			2		22		—		33
Amortization	51			36		20		—		107
Intercompany management expense (income)	15			(4	)	(11	)	—		—
	340			82		196		(169	)	449
Operating income	150			77		58		—		285
Other (expense) income:
Equity in losses of investee	—			—		(2	)	—		(2	)
Gains on financial instruments	—			—		3		—		3
Interest (expense) income, net	(50		)	(1	)	1		—		(50	)
Foreign currency (loss) gain	(1		)	—		1		—		—
Loss on extinguishment of debt	(16		)	—		—		—		(16	)
Intercompany interest and other (expense) income	(4		)	12		(8	)	—		—
	(71		)	11		(5	)	—		(65	)
Income before income taxes	79			88		53		—		220
Income tax expense	(21		)	(32	)	(28	)	—		(81	)
Equity in earnings of subsidiaries, net of tax	81			11		—		(92	)	—
Net income	139			67		25		(92	)	139
Less net income attributable to the noncontrolling interest	(13		)	—		(13	)	13		(13	)
Net income attributable to QVC, Inc. stockholder	$	126		67		12		(79	)	126

Condensed consolidating statements of operations - Adjusted



Six months ended June 30, 2013
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net revenue	$	2,640		365		1,389		(459	)	3,935
Cost of goods sold	1,679			49		871		(120	)	2,479
Gross profit	961			316		518		(339	)	1,456
Operating expenses:
Operating	75			93		176		—		344
Selling, general and administrative, including stock-based compensation	463			—		169		(339	)	293
Depreciation	19			3		41		—		63
Amortization	102			70		39		—		211
Intercompany management expense (income)	32			(7	)	(25	)	—		—
	691			159		400		(339	)	911
Operating income	270			157		118		—		545
Other (expense) income:
Equity in losses of investee	—			—		(1	)	—		(1	)
Gains on financial instruments	12			—		3		—		15
Interest expense, net	(112		)	(1	)	—		—		(113	)
Foreign currency (loss) gain	(2		)	(1	)	2		—		(1	)
Loss on extinguishment of debt	(57		)	—		—		—		(57	)
Intercompany interest and other (expense) income	(7		)	25		(18	)	—		—
	(166		)	23		(14	)	—		(157	)
Income before income taxes	104			180		104		—		388
Income tax expense	(32		)	(60	)	(51	)	—		(143	)
Equity in earnings of subsidiaries, net of tax	173			26		—		(199	)	—
Net income	245			146		53		(199	)	245
Less net income attributable to the noncontrolling interest	(25		)	—		(25	)	25		(25	)
Net income attributable to QVC, Inc. stockholder	$	220		146		28		(174	)	220

Consolidating statements of operations - Adjusted



Year ended December 31, 2011
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net revenue	$	5,485		790		2,988		(995	)	8,268
Cost of goods sold	3,507			120		1,906		(255	)	5,278
Gross profit	1,978			670		1,082		(740	)	2,990
Operating expenses:
Operating	166			201		377		—		744
Selling, general and administrative, including stock-based compensation	947			—		328		(740	)	535
Depreciation	36			4		95		—		135
Amortization of intangible assets	242			133		64		—		439
Intercompany management expense (income)	89			(27	)	(62	)	—		—
	1,480			311		802		(740	)	1,853
Operating income	498			359		280		—		1,137
Other (expense) income:
Equity in losses of investee	—			—		(2	)	—		(2	)
Gains on financial instruments	50			—		—		—		50
Interest (expense) income	(230		)	—		1		—		(229	)
Foreign currency (loss) gain	(3		)	(2	)	3		—		(2	)
Intercompany interest (expense) income	(9		)	53		(44	)	—		—
	(192		)	51		(42	)	—		(183	)
Income before income taxes	306			410		238		—		954
Income tax expense	(110		)	(124	)	(108	)	—		(342	)
Equity in earnings of subsidiaries, net of tax	416			70		—		(486	)	—
Net income	612			356		130		(486	)	612
Less net income attributable to the noncontrolling interest	(52		)	—		(52	)	52		(52	)
Net income attributable to QVC, Inc. shareholder	$	560		356		78		(434	)	560

Consolidating statements of operations - Adjusted



Year ended December 31, 2012
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net revenue	$	5,653		819		3,078		(1,034	)	8,516
Cost of goods sold	3,644			116		1,941		(282	)	5,419
Gross profit	2,009			703		1,137		(752	)	3,097
Operating expenses:
Operating	140			206		369		—		715
Selling, general and administrative, including stock-based compensation	1,002			1		337		(752	)	588
Depreciation	35			4		87		—		126
Amortization of intangible assets	204			130		66		—		400
Intercompany management expense (income)	60			(14	)	(46	)	—		—
	1,441			327		813		(752	)	1,829
Operating income	568			376		324		—		1,268
Other (expense) income:
Equity in losses of investee	—			—		(4	)	—		(4	)
Gains on financial instruments	48			—		—		—		48
Interest expense, net	(233		)	—		—		—		(233	)
Foreign currency (loss) gain	(10		)	4		8		—		2
Intercompany interest (expense) income	(13		)	51		(38	)	—		—
	(208		)	55		(34	)	—		(187	)
Income before income taxes	360			431		290		—		1,081
Income tax expense	(116		)	(141	)	(137	)	—		(394	)
Equity in earnings of subsidiaries, net of tax	443			93		—		(536	)	—
Net income	687			383		153		(536	)	687
Less net income attributable to the noncontrolling interest	(63		)	—		(63	)	63		(63	)
Net income attributable to QVC, Inc. shareholder	$	624		383		90		(473	)	624

Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Year

Condensed consolidating statements of comprehensive income



Three months ended June 30, 2014
(in millions)	Subsidiary issuer- QVC, Inc.			Combined subsidiary guarantors	Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net income	$	140		94	43		(137	)	140
Foreign currency translation adjustments	2			—	2		(2	)	2
Total comprehensive income	142			94	45		(139	)	142
Comprehensive income attributable to noncontrolling interest	(10		)	—	(10	)	10		(10	)
Comprehensive income attributable to QVC, Inc. stockholder	$	132		94	35		(129	)	132

Condensed consolidating statements of comprehensive income



Six months ended June 30, 2014
(in millions)	Subsidiary issuer- QVC, Inc.			Combined subsidiary guarantors	Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net income	$	262		105	8		(113	)	262
Foreign currency translation adjustments	18			—	18		(18	)	18
Total comprehensive income	280			105	26		(131	)	280
Comprehensive income attributable to noncontrolling interest	(22		)	—	(22	)	22		(22	)
Comprehensive income attributable to QVC, Inc. stockholder	$	258		105	4		(109	)	258

Consolidating statements of comprehensive income

	Year ended December 31, 2013

(in millions)	Parent issuer— QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries			Eliminations			Consolidated— QVC, Inc. and subsidiaries
Net income	$	633			353		132			(485	)		633
Foreign currency translation adjustments		(72	)		—		(72	)		72			(72	)


Total comprehensive income		561			353		60			(413	)		561
Comprehensive income attributable to noncontrolling interest		(20	)		—		(20	)		20			(20	)


Comprehensive income attributable to QVC, Inc. shareholder	$	541			353		40			(393	)		541

Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Year



Three months ended June 30, 2013
(in millions)	Subsidiary issuer- QVC, Inc.			Combined subsidiary guarantors	Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net income	$	139		67	25		(92	)	139
Foreign currency translation adjustments	(16		)	—	(16	)	16		(16	)
Total comprehensive income	123			67	9		(76	)	123
Comprehensive income attributable to noncontrolling interest	(7		)	—	(7	)	7		(7	)
Comprehensive income attributable to QVC, Inc. stockholder	$	116		67	2		(69	)	116

Condensed consolidating statements of comprehensive income - Adjusted



Six months ended June 30, 2013
(in millions)	Subsidiary issuer- QVC, Inc.			Combined subsidiary guarantors	Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net income	$	245		146	53		(199	)	245
Foreign currency translation adjustments	(107		)	—	(107	)	107		(107	)
Total comprehensive income (loss)	138			146	(54	)	(92	)	138
Comprehensive income attributable to noncontrolling interest	(6		)	—	(6	)	6		(6	)
Comprehensive income (loss) attributable to QVC, Inc. stockholder	$	132		146	(60	)	(86	)	132



Year ended December 31, 2011
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors	Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net income	612			356	130		(486	)	612
Foreign currency translation adjustments	(10		)	—	(10	)	10		(10	)
Total comprehensive income	602			356	120		(476	)	602
Comprehensive income attributable to noncontrolling interest	(57		)	—	(57	)	57		(57	)
Comprehensive income attributable to QVC, Inc. shareholder	$	545		356	63		(419	)	545



Year ended December 31, 2012
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors	Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Net income	$	687		383	153		(536	)	687
Foreign currency translation adjustments	(27		)	—	(27	)	27		(27	)
Total comprehensive income	660			383	126		(509	)	660
Comprehensive income attributable to noncontrolling interest	(44		)	—	(44	)	44		(44	)
Comprehensive income attributable to QVC, Inc. shareholder	$	616		383	82		(465	)	616

Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Year

Condensed consolidating statements of cash flows



Six months ended June 30, 2014
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Operating activities:
Net cash provided by operating activities	$	217		172		160		—		549
Investing activities:
Capital expenditures, net	(74		)	(1	)	38		(20	)	(57	)
Expenditures for cable and satellite television distribution rights, net	—			(8	)	—		—		(8	)
Intercompany investing activities	114			27		—		(141	)	—
Net cash provided by (used in) investing activities	40			18		38		(161	)	(65	)
Financing activities:
Principal payments of debt and capital lease obligations	(1,414		)	—		(5	)	—		(1,419	)
Principal borrowings of debt from senior secured credit facility	554			—		—		—		554
Proceeds from issuance of senior secured notes, net of original issue discount	999			—		—		—		999
Payment of debt origination fees	(12		)	—		—		—		(12	)
Other financing activities	(4		)	—		—		—		(4	)
Dividends paid to Liberty	(480		)	—		—		—		(480	)
Dividends paid to noncontrolling interest	—			—		(25	)	—		(25	)
Net short-term intercompany debt borrowings (repayments)	65			65		(130	)	—		—
Intercompany financing activities	(25		)	(226	)	90		161		—
Net cash used in financing activities	(317		)	(161	)	(70	)	161		(387	)
Effect of foreign exchange rate changes on cash and cash equivalents	—			—		(6	)	—		(6	)
Net (decrease) increase in cash and cash equivalents	(60		)	29		122		—		91
Cash and cash equivalents, beginning of period	78			133		246		—		457
Cash and cash equivalents, end of period	$	18		162		368		—		548

Consolidating statements of cash flows



Year ended December 31, 2013
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Operating activities:
Net cash provided by operating activities	$	379		389		205		—		973
Investing activities:
Capital expenditures, net	(106		)	(8	)	(97	)	—		(211	)
Expenditures for cable and satellite television distribution rights, net	—			(56	)	(2	)	—		(58	)
Decrease (increase) in restricted cash	2			—		(1	)	—		1
Changes in other noncurrent assets	(1		)	—		(1	)	—		(2	)
Intercompany investing activities	368			277		—		(645	)	—
Net cash provided by (used in) investing activities	263			213		(101	)	(645	)	(270	)
Financing activities:
Principal payments of debt and capital lease obligations	(2,375		)	—		(12	)	—		(2,387	)
Principal borrowings of debt from senior secured credit facility	1,674			—		—		—		1,674
Proceeds from issuance of senior secured notes, net of original issue discount	1,050			—		—		—		1,050
Payment of debt origination fees	(16		)	—		—		—		(16	)
Payment of bond premium fees	(46		)	—		—		—		(46	)
Other financing activities	12			—		—		—		12
Dividends paid to Liberty	(1,005		)	—		—		—		(1,005	)
Dividends paid to noncontrolling interest	—			—		(45	)	—		(45	)
Net short-term intercompany debt borrowings (repayments)	190			(63	)	(127	)	—		—
Intercompany financing activities	(123		)	(571	)	49		645		—
Net cash used in financing activities	(639		)	(634	)	(135	)	645		(763	)
Effect of foreign exchange rate changes on cash and cash equivalents	—			—		(23	)	—		(23	)
Net increase (decrease) in cash and cash equivalents	3			(32	)	(54	)	—		(83	)
Cash and cash equivalents, beginning of period	75			165		300		—		540
Cash and cash equivalents, end of period	$	78		133		246		—		457

Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Year

Condensed consolidating statements of cash flows - Adjusted



Six months ended June 30, 2013
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Operating activities:
Net cash provided by operating activities	$	275		115		52		—		442
Investing activities:
Capital expenditures, net	(33		)	—		(42	)	—		(75	)
Expenditures for cable and satellite television distribution rights, net	—			(25	)	(1	)	—		(26	)
Changes in other noncurrent assets	4			—		(3	)	—		1
Intercompany investing activities	258			149		—		(407	)	—
Net cash provided by (used in) investing activities	229			124		(46	)	(407	)	(100	)
Financing activities:
Principal payments of debt and capital lease obligations	(1,690		)	—		(5	)	—		(1,695	)
Principal borrowings of debt from senior secured credit facility	1,053			—		—		—		1,053
Proceeds from issuance of senior secured notes, net of original issue discount	1,050			—		—		—		1,050
Payment of debt origination fees	(16		)	—		—		—		(16	)
Payment of bond premium fees	(46		)	—		—		—		(46	)
Other financing activities	7			—		—		—		7
Dividends paid to Liberty	(765		)	—		—		—		(765	)
Dividends paid to noncontrolling interest	—			—		(25	)	—		(25	)
Net short-term intercompany debt (repayments) borrowings	(21		)	86		(65	)	—		—
Intercompany financing activities	(143		)	(326	)	62		407		—
Net cash used in financing activities	(571		)	(240	)	(33	)	407		(437	)
Effect of foreign exchange rate changes on cash and cash equivalents	—			—		(29	)	—		(29	)
Net decrease in cash and cash equivalents	(67		)	(1	)	(56	)	—		(124	)
Cash and cash equivalents, beginning of period	75			165		300		—		540
Cash and cash equivalents, end of period	$	8		164		244		—		416

Consolidating statements of cash flows - Adjusted



Year ended December 31, 2011
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Operating activities:
Net cash provided by operating activities	$	225		380		213		—		818
Investing activities:
Capital expenditures, net	(83		)	(8	)	(168	)	—		(259	)
Expenditures for cable and satellite television distribution rights, net	—			(2	)	—		—		(2	)
Decrease in restricted cash	1			—		—		—		1
Changes in other noncurrent assets and liabilities	5			—		(1	)	—		4
Intercompany investing activities	348			190		—		(538	)	—
Net cash provided by (used in) investing activities	271			180		(169	)	(538	)	(256	)
Financing activities:
Principal payments of debt and capital lease obligations	(825		)	—		(12	)	—		(837	)
Principal borrowings of debt from senior secured credit facility	465			—		—		—		465
Dividends paid to Liberty	(205		)	—		—		—		(205	)
Dividends paid to noncontrolling interest	—			—		(50	)	—		(50	)
Net short-term intercompany debt borrowings (repayments)	104			2		(106	)	—		—
Intercompany financing activities	(76		)	(499	)	37		538		—
Net cash used in financing activities	(537		)	(497	)	(131	)	538		(627	)
Effect of foreign exchange rate changes on cash and cash equivalents	—			—		4		—		4
Net (decrease) increase in cash and cash equivalents	(41		)	63		(83	)	—		(61	)
Cash and cash equivalents, beginning of period	44			160		417		—		621
Cash and cash equivalents, end of period	$	3		223		334		—		560

Consolidating statements of cash flows - Adjusted



Year ended December 31, 2012
(in millions)	Parent issuer- QVC, Inc.			Combined subsidiary guarantors		Combined non-guarantor subsidiaries		Eliminations		Consolidated- QVC, Inc. and subsidiaries
Operating activities:
Net cash provided by operating activities	$	462		412		332		—		1,206
Investing activities:
Capital expenditures, net	(76		)	(5	)	(165	)	—		(246	)
Expenditures for cable and satellite television distribution rights, net	—			(1	)	(1	)	—		(2	)
Cash paid for joint ventures and acquisitions of businesses, net of cash received	—			—		(95	)	—		(95	)
Decrease in restricted cash	2			—		—		—		2
Changes in other noncurrent assets	(3		)	—		—		—		(3	)
Intercompany investing activities	443			265		—		(708	)	—
Net cash provided by (used in) investing activities	366			259		(261	)	(708	)	(344	)
Financing activities:
Principal payments of debt and capital lease obligations	(1,237		)	—		(9	)	—		(1,246	)
Principal borrowings of debt from senior secured credit facility	1,717			—		—		—		1,717
Proceeds from issuance of senior secured notes	500			—		—		—		500
Payment of debt origination fees	(7		)	—		—		—		(7	)
Other financing activities	20			—		—		—		20
Dividends paid to Liberty	(1,817		)	—		—		—		(1,817	)
Dividend paid to noncontrolling interest	—			—		(29	)	—		(29	)
Net short-term intercompany debt borrowings (repayments)	214			(59	)	(155	)	—		—
Intercompany financing activities	(146		)	(670	)	108		708		—
Net cash used in financing activities	(756		)	(729	)	(85	)	708		(862	)
Effect of foreign exchange rate changes on cash and cash equivalents	—			—		(20	)	—		(20	)
Net increase (decrease) in cash and cash equivalents	72			(58	)	(34	)	—		(20	)
Cash and cash equivalents, beginning of period	3			223		334		—		560
Cash and cash equivalents, end of period	$	75		165		300		—		540