| Guarantor Non-guarantor Subsidiary Financial Information [Text Block] |
Guarantor/Non-guarantor Subsidiary Financial Information
The following information contains the condensed consolidating financial statements for the Company, the parent on a stand-alone basis (QVC, Inc.), the combined subsidiary guarantors (Affiliate Relations Holdings, Inc.; Affiliate Investment, Inc.; AMI 2, Inc.; ER Marks, Inc.; QVC International LLC; QVC Rocky Mount, Inc. and QVC San Antonio, LLC) and the combined non-guarantor subsidiaries pursuant to Rule 3-10 of Regulation S-X. Certain non-guarantor subsidiaries are majority owned by QVC International LLC, which is a guarantor subsidiary.
These condensed consolidating financial statements have been prepared from the Company’s financial information on the same basis of accounting as the Company’s condensed consolidated financial statements. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, such as management fees, royalty revenue and expense and interest income and expense. Goodwill and other intangible assets have been allocated to the subsidiaries based on management’s estimates. Certain costs have been partially allocated to all of the subsidiaries of the Company.
The subsidiary guarantors are 100% owned by the Company. All guarantees are full and unconditional and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its U.S. subsidiaries, including the guarantors, by dividend or loan. The Company has not presented separate notes and other disclosures concerning the subsidiary guarantors as the Company has determined that such material information is available in the notes to the Company’s condensed consolidated financial statements.
Condensed consolidated balance sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 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 |
$ |
8 |
|
164 |
|
244 |
|
— |
|
416 |
|
Restricted cash |
13 |
|
— |
|
2 |
|
— |
|
15 |
|
Accounts receivable, net |
460 |
|
— |
|
242 |
|
— |
|
702 |
|
Inventories |
687 |
|
— |
|
264 |
|
— |
|
951 |
|
Deferred income taxes |
137 |
|
— |
|
22 |
|
— |
|
159 |
|
Prepaid expenses |
21 |
|
— |
|
40 |
|
— |
|
61 |
|
Total current assets |
1,326 |
|
164 |
|
814 |
|
— |
|
2,304 |
|
Property, plant and equipment, net |
242 |
|
64 |
|
755 |
|
— |
|
1,061 |
|
Cable and satellite television distribution rights, net |
— |
|
554 |
|
125 |
|
— |
|
679 |
|
Goodwill |
4,169 |
|
— |
|
1,001 |
|
— |
|
5,170 |
|
Other intangible assets, net |
1,206 |
|
2,049 |
|
166 |
|
— |
|
3,421 |
|
Other noncurrent assets |
10 |
|
— |
|
65 |
|
— |
|
75 |
|
Investments in subsidiaries |
3,586 |
|
1,715 |
|
— |
|
(5,301 |
) |
— |
|
Total assets |
$ |
10,539 |
|
4,546 |
|
2,926 |
|
(5,301 |
) |
12,710 |
|
Liabilities and equity |
Current liabilities: |
|
|
|
|
|
Current portion of debt and capital lease obligations |
$ |
2 |
|
— |
|
9 |
|
— |
|
11 |
|
Accounts payable-trade |
236 |
|
— |
|
208 |
|
— |
|
444 |
|
Accrued liabilities |
232 |
|
45 |
|
414 |
|
— |
|
691 |
|
Intercompany accounts (receivable) payable |
(364 |
) |
(309 |
) |
673 |
|
— |
|
— |
|
Total current liabilities |
106 |
|
(264 |
) |
1,304 |
|
— |
|
1,146 |
|
Long-term portion of debt and capital lease obligations |
3,813 |
|
— |
|
57 |
|
— |
|
3,870 |
|
Deferred compensation |
13 |
|
— |
|
1 |
|
— |
|
14 |
|
Deferred income taxes |
417 |
|
944 |
|
(14 |
) |
— |
|
1,347 |
|
Other long-term liabilities |
132 |
|
— |
|
18 |
|
— |
|
150 |
|
Total liabilities |
4,481 |
|
680 |
|
1,366 |
|
— |
|
6,527 |
|
Equity: |
|
|
|
|
|
QVC, Inc. shareholder's equity |
6,058 |
|
3,866 |
|
1,435 |
|
(5,301 |
) |
6,058 |
|
Noncontrolling interest |
— |
|
— |
|
125 |
|
— |
|
125 |
|
Total equity |
6,058 |
|
3,866 |
|
1,560 |
|
(5,301 |
) |
6,183 |
|
Total liabilities and equity |
$ |
10,539 |
|
4,546 |
|
2,926 |
|
(5,301 |
) |
12,710 |
|
Condensed consolidated balance sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
3,789 |
|
1,838 |
|
— |
|
(5,627 |
) |
— |
|
Total assets |
$ |
11,175 |
|
4,737 |
|
3,153 |
|
(5,627 |
) |
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 (receivable) payable |
(226 |
) |
(411 |
) |
637 |
|
— |
|
— |
|
Total current liabilities |
502 |
|
(305 |
) |
1,336 |
|
— |
|
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 |
4,485 |
|
676 |
|
1,443 |
|
— |
|
6,604 |
|
Equity: |
|
|
|
|
|
QVC, Inc. shareholder's equity |
6,690 |
|
4,061 |
|
1,566 |
|
(5,627 |
) |
6,690 |
|
Noncontrolling interest |
— |
|
— |
|
144 |
|
— |
|
144 |
|
Total equity |
6,690 |
|
4,061 |
|
1,710 |
|
(5,627 |
) |
6,834 |
|
Total liabilities and equity |
$ |
11,175 |
|
4,737 |
|
3,153 |
|
(5,627 |
) |
13,438 |
|
Condensed consolidated statements of operations
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
$ |
1,384 |
|
182 |
|
623 |
|
(228 |
) |
1,961 |
|
Cost of goods sold |
836 |
|
23 |
|
427 |
|
(59 |
) |
1,227 |
|
Gross profit |
548 |
|
159 |
|
196 |
|
(169 |
) |
734 |
|
Operating expenses: |
|
|
|
|
|
Operating |
47 |
|
48 |
|
76 |
|
— |
|
171 |
|
Selling, general and administrative, including stock-based compensation |
227 |
|
— |
|
80 |
|
(169 |
) |
138 |
|
Depreciation |
9 |
|
2 |
|
22 |
|
— |
|
33 |
|
Amortization of intangible assets |
51 |
|
36 |
|
20 |
|
— |
|
107 |
|
Intercompany management expense (income) |
15 |
|
(4 |
) |
(11 |
) |
— |
|
— |
|
|
349 |
|
82 |
|
187 |
|
(169 |
) |
449 |
|
Operating income |
199 |
|
77 |
|
9 |
|
— |
|
285 |
|
Other (expense) income: |
|
|
|
|
|
Equity in losses of investee |
— |
|
— |
|
(2 |
) |
— |
|
(2 |
) |
Gains on financial instruments |
— |
|
— |
|
3 |
|
— |
|
3 |
|
Interest (expense) income |
(50 |
) |
(1 |
) |
1 |
|
— |
|
(50 |
) |
Foreign currency (loss) gain |
(1 |
) |
— |
|
1 |
|
— |
|
— |
|
Loss on extinguishment of debt |
(16 |
) |
— |
|
— |
|
— |
|
(16 |
) |
Intercompany interest (expense) income |
(4 |
) |
12 |
|
(8 |
) |
— |
|
— |
|
|
(71 |
) |
11 |
|
(5 |
) |
— |
|
(65 |
) |
Income before income taxes |
128 |
|
88 |
|
4 |
|
— |
|
220 |
|
Income tax expense |
(21 |
) |
(32 |
) |
(28 |
) |
— |
|
(81 |
) |
Equity in earnings of subsidiaries, net of tax |
32 |
|
11 |
|
— |
|
(43 |
) |
— |
|
Net income (loss) |
139 |
|
67 |
|
(24 |
) |
(43 |
) |
139 |
|
Less net income attributable to the noncontrolling interest |
(13 |
) |
— |
|
(13 |
) |
13 |
|
(13 |
) |
Net income (loss) attributable to QVC, Inc. shareholder |
$ |
126 |
|
67 |
|
(37 |
) |
(30 |
) |
126 |
|
Condensed consolidated statements of operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2012 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net revenue |
$ |
1,352 |
|
182 |
|
670 |
|
(230 |
) |
1,974 |
|
Cost of goods sold |
830 |
|
27 |
|
437 |
|
(60 |
) |
1,234 |
|
Gross profit |
522 |
|
155 |
|
233 |
|
(170 |
) |
740 |
|
Operating expenses: |
|
|
|
|
|
Operating |
45 |
|
47 |
|
84 |
|
— |
|
176 |
|
Selling, general and administrative, including stock-based compensation |
217 |
|
— |
|
87 |
|
(170 |
) |
134 |
|
Depreciation |
9 |
|
1 |
|
23 |
|
— |
|
33 |
|
Amortization of intangible assets |
48 |
|
33 |
|
15 |
|
— |
|
96 |
|
Intercompany management expense (income) |
44 |
|
(18 |
) |
(26 |
) |
— |
|
— |
|
|
363 |
|
63 |
|
183 |
|
(170 |
) |
439 |
|
Operating income |
159 |
|
92 |
|
50 |
|
— |
|
301 |
|
Other income (expense): |
|
|
|
|
|
Gains on financial instruments |
12 |
|
— |
|
1 |
|
— |
|
13 |
|
Interest expense |
(56 |
) |
— |
|
(1 |
) |
— |
|
(57 |
) |
Foreign currency loss |
(3 |
) |
(5 |
) |
— |
|
— |
|
(8 |
) |
Intercompany interest (expense) income |
(3 |
) |
12 |
|
(9 |
) |
— |
|
— |
|
|
(50 |
) |
7 |
|
(9 |
) |
— |
|
(52 |
) |
Income before income taxes |
109 |
|
99 |
|
41 |
|
— |
|
249 |
|
Income tax expense |
(29 |
) |
(29 |
) |
(34 |
) |
— |
|
(92 |
) |
Equity in earnings of subsidiaries, net of tax |
77 |
|
17 |
|
— |
|
(94 |
) |
— |
|
Net income (loss) |
157 |
|
87 |
|
7 |
|
(94 |
) |
157 |
|
Less net income attributable to the noncontrolling interest |
(15 |
) |
— |
|
(15 |
) |
15 |
|
(15 |
) |
Net income (loss) attributable to QVC, Inc. shareholder |
$ |
142 |
|
87 |
|
(8 |
) |
(79 |
) |
142 |
|
Condensed consolidated statements of operations
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
$ |
2,752 |
|
365 |
|
1,277 |
|
(459 |
) |
3,935 |
|
Cost of goods sold |
1,690 |
|
49 |
|
860 |
|
(120 |
) |
2,479 |
|
Gross profit |
1,062 |
|
316 |
|
417 |
|
(339 |
) |
1,456 |
|
Operating expenses: |
|
|
|
|
|
Operating |
92 |
|
93 |
|
159 |
|
— |
|
344 |
|
Selling, general and administrative, including stock-based compensation |
463 |
|
— |
|
169 |
|
(339 |
) |
293 |
|
Depreciation |
19 |
|
3 |
|
41 |
|
— |
|
63 |
|
Amortization of intangible assets |
102 |
|
70 |
|
39 |
|
— |
|
211 |
|
Intercompany management expense (income) |
32 |
|
(7 |
) |
(25 |
) |
— |
|
— |
|
|
708 |
|
159 |
|
383 |
|
(339 |
) |
911 |
|
Operating income |
354 |
|
157 |
|
34 |
|
— |
|
545 |
|
Other income (expense): |
|
|
|
|
|
Equity in losses of investee |
— |
|
— |
|
(1 |
) |
— |
|
(1 |
) |
Gains on financial instruments |
12 |
|
— |
|
3 |
|
— |
|
15 |
|
Interest expense |
(112 |
) |
(1 |
) |
— |
|
— |
|
(113 |
) |
Foreign currency (loss) gain |
(2 |
) |
(1 |
) |
2 |
|
— |
|
(1 |
) |
Loss on extinguishment of debt |
(57 |
) |
— |
|
— |
|
— |
|
(57 |
) |
Intercompany interest (expense) income |
(7 |
) |
25 |
|
(18 |
) |
— |
|
— |
|
|
(166 |
) |
23 |
|
(14 |
) |
— |
|
(157 |
) |
Income before income taxes |
188 |
|
180 |
|
20 |
|
— |
|
388 |
|
Income tax expense |
(32 |
) |
(60 |
) |
(51 |
) |
— |
|
(143 |
) |
Equity in earnings of subsidiaries, net of tax |
89 |
|
26 |
|
— |
|
(115 |
) |
— |
|
Net income (loss) |
245 |
|
146 |
|
(31 |
) |
(115 |
) |
245 |
|
Less net income attributable to the noncontrolling interest |
(25 |
) |
— |
|
(25 |
) |
25 |
|
(25 |
) |
Net income (loss) attributable to QVC, Inc. shareholder |
$ |
220 |
|
146 |
|
(56 |
) |
(90 |
) |
220 |
|
Condensed consolidated statements of operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2012 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net revenue |
$ |
2,662 |
|
354 |
|
1,342 |
|
(452 |
) |
3,906 |
|
Cost of goods sold |
1,653 |
|
54 |
|
876 |
|
(119 |
) |
2,464 |
|
Gross profit |
1,009 |
|
300 |
|
466 |
|
(333 |
) |
1,442 |
|
Operating expenses: |
|
|
|
|
|
Operating |
88 |
|
92 |
|
171 |
|
— |
|
351 |
|
Selling, general and administrative, including stock-based compensation |
440 |
|
— |
|
169 |
|
(333 |
) |
276 |
|
Depreciation |
17 |
|
2 |
|
45 |
|
— |
|
64 |
|
Amortization of intangible assets |
96 |
|
65 |
|
31 |
|
— |
|
192 |
|
Intercompany management expense (income) |
40 |
|
(15 |
) |
(25 |
) |
— |
|
— |
|
|
681 |
|
144 |
|
391 |
|
(333 |
) |
883 |
|
Operating income |
328 |
|
156 |
|
75 |
|
— |
|
559 |
|
Other income (expense): |
|
|
|
|
|
Gains on financial instruments |
24 |
|
— |
|
— |
|
— |
|
24 |
|
Interest expense |
(111 |
) |
— |
|
— |
|
— |
|
(111 |
) |
Foreign currency (loss) gain |
(5 |
) |
— |
|
3 |
|
— |
|
(2 |
) |
Intercompany interest (expense) income |
(6 |
) |
25 |
|
(19 |
) |
— |
|
— |
|
|
(98 |
) |
25 |
|
(16 |
) |
— |
|
(89 |
) |
Income before income taxes |
230 |
|
181 |
|
59 |
|
— |
|
470 |
|
Income tax expense |
(63 |
) |
(54 |
) |
(57 |
) |
— |
|
(174 |
) |
Equity in earnings of subsidiaries, net of tax |
129 |
|
34 |
|
— |
|
(163 |
) |
— |
|
Net income (loss) |
296 |
|
161 |
|
2 |
|
(163 |
) |
296 |
|
Less net income attributable to the noncontrolling interest |
(29 |
) |
— |
|
(29 |
) |
29 |
|
(29 |
) |
Net income (loss) attributable to QVC, Inc. shareholder |
$ |
267 |
|
161 |
|
(27 |
) |
(134 |
) |
267 |
|
Condensed consolidated statements of comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (loss) |
$ |
139 |
|
67 |
|
(24 |
) |
(43 |
) |
139 |
|
Foreign currency translation adjustments |
(16 |
) |
— |
|
(16 |
) |
16 |
|
(16 |
) |
Total comprehensive income (loss) |
123 |
|
67 |
|
(40 |
) |
(27 |
) |
123 |
|
Comprehensive (income) loss attributable to noncontrolling interest |
(7 |
) |
— |
|
(7 |
) |
7 |
|
(7 |
) |
Comprehensive income (loss) attributable to QVC, Inc. shareholder |
116 |
|
67 |
|
(47 |
) |
(20 |
) |
116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2012 |
|
(in millions) |
Subsidiary
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net income (loss) |
$ |
157 |
|
87 |
|
7 |
|
(94 |
) |
157 |
|
Foreign currency translation adjustments |
(49 |
) |
— |
|
(49 |
) |
49 |
|
(49 |
) |
Total comprehensive income (loss) |
108 |
|
87 |
|
(42 |
) |
(45 |
) |
108 |
|
Comprehensive (income) loss attributable to noncontrolling interest |
(19 |
) |
— |
|
(19 |
) |
19 |
|
(19 |
) |
Comprehensive income (loss) attributable to QVC, Inc. shareholder |
89 |
|
87 |
|
(61 |
) |
(26 |
) |
89 |
|
Condensed consolidated statements of comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (loss) |
$ |
245 |
|
146 |
|
(31 |
) |
(115 |
) |
245 |
|
Foreign currency translation adjustments |
(107 |
) |
— |
|
(107 |
) |
107 |
|
(107 |
) |
Total comprehensive income (loss) |
138 |
|
146 |
|
(138 |
) |
(8 |
) |
138 |
|
Comprehensive (income) loss attributable to noncontrolling interest |
(6 |
) |
— |
|
(6 |
) |
6 |
|
(6 |
) |
Comprehensive income (loss) attributable to QVC, Inc. shareholder |
$ |
132 |
|
146 |
|
(144 |
) |
(2 |
) |
132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2012 |
|
(in millions) |
Subsidiary
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net income (loss) |
$ |
296 |
|
161 |
|
2 |
|
(163 |
) |
296 |
|
Foreign currency translation adjustments |
(36 |
) |
— |
|
(36 |
) |
36 |
|
(36 |
) |
Total comprehensive income (loss) |
260 |
|
161 |
|
(34 |
) |
(127 |
) |
260 |
|
Comprehensive (income) loss attributable to noncontrolling interest |
(23 |
) |
— |
|
(23 |
) |
23 |
|
(23 |
) |
Comprehensive income (loss) attributable to QVC, Inc. shareholder |
$ |
237 |
|
161 |
|
(57 |
) |
(104 |
) |
237 |
|
Condensed consolidated statements of cash flows
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (used in) operating activities |
$ |
358 |
|
115 |
|
(31 |
) |
— |
|
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 |
292 |
|
149 |
|
— |
|
(441 |
) |
— |
|
Net cash provided by (used in) investing activities |
263 |
|
124 |
|
(46 |
) |
(441 |
) |
(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, net |
(765 |
) |
— |
|
— |
|
— |
|
(765 |
) |
Dividend paid to noncontrolling interest |
— |
|
— |
|
(25 |
) |
— |
|
(25 |
) |
Net short-term intercompany debt (repayments) borrowings |
(138 |
) |
102 |
|
36 |
|
— |
|
— |
|
Intercompany financing activities |
(143 |
) |
(342 |
) |
44 |
|
441 |
|
— |
|
Net cash (used in) provided by financing activities |
(688 |
) |
(240 |
) |
50 |
|
441 |
|
(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 |
|
Condensed consolidated statements of cash flows
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 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 |
$ |
403 |
|
171 |
|
69 |
|
— |
|
643 |
|
Investing activities: |
|
|
|
|
|
Capital expenditures, net |
(20 |
) |
(1 |
) |
(80 |
) |
— |
|
(101 |
) |
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 |
— |
|
— |
|
(27 |
) |
— |
|
(27 |
) |
Decrease in restricted cash |
2 |
|
— |
|
— |
|
— |
|
2 |
|
Changes in other noncurrent assets |
2 |
|
(1 |
) |
— |
|
— |
|
1 |
|
Intercompany investing activities |
306 |
|
189 |
|
— |
|
(495 |
) |
— |
|
Net cash provided by (used in) investing activities |
290 |
|
186 |
|
(108 |
) |
(495 |
) |
(127 |
) |
Financing activities: |
|
|
|
|
|
|
|
|
|
|
Principal payments of debt and capital lease obligations |
(774 |
) |
— |
|
(5 |
) |
— |
|
(779 |
) |
Principal borrowings of debt from senior secured credit facility |
648 |
|
— |
|
— |
|
— |
|
648 |
|
Dividends paid to Liberty, net |
(458 |
) |
— |
|
— |
|
— |
|
(458 |
) |
Dividend paid to noncontrolling interest |
— |
|
— |
|
(29 |
) |
— |
|
(29 |
) |
Net short-term intercompany debt (repayments) borrowings |
(45 |
) |
24 |
|
21 |
|
— |
|
— |
|
Intercompany financing activities |
(64 |
) |
(441 |
) |
10 |
|
495 |
|
— |
|
Net cash used in financing activities |
(693 |
) |
(417 |
) |
(3 |
) |
495 |
|
(618 |
) |
Effect of foreign exchange rate changes on cash and cash equivalents |
— |
|
— |
|
(12 |
) |
— |
|
(12 |
) |
Net decrease in cash and cash equivalents |
— |
|
(60 |
) |
(54 |
) |
— |
|
(114 |
) |
Cash and cash equivalents, beginning of period |
3 |
|
223 |
|
334 |
|
— |
|
560 |
|
Cash and cash equivalents, end of period |
$ |
3 |
|
163 |
|
280 |
|
— |
|
446 |
|
|