Guarantor/Non-Guarantor Subsidiary Financial Information (Tables)

v2.4.0.8

Guarantor/Non-Guarantor Subsidiary Financial Information (Tables)	9 Months Ended
	Sep. 30, 2013
Guarantor Non-guarantor Subsidiary Financial Information [Abstract]
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Current Period	September 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 $ 8 170 191 — 369 Restricted cash 11 — 2 — 13 Accounts receivable, net 494 — 236 — 730 Inventories 800 — 323 — 1,123 Deferred income taxes 139 — 17 — 156 Prepaid expenses 19 — 44 — 63 Total current assets 1,471 170 813 — 2,454 Property, plant and equipment, net 248 65 768 — 1,081 Cable and satellite television distribution rights, net — 533 121 — 654 Goodwill 4,169 — 1,036 — 5,205 Other intangible assets, net 1,165 2,050 159 — 3,374 Other noncurrent assets 11 — 66 — 77 Investments in subsidiaries 4,829 1,702 — (6,531 ) — Total assets $ 11,893 4,520 2,963 (6,531 ) 12,845 Liabilities and equity Current liabilities: Current portion of debt and capital lease obligations $ 302 — 8 — 310 Accounts payable-trade 292 — 243 — 535 Accrued liabilities 281 58 377 — 716 Intercompany accounts payable (receivable) 867 (761 ) (106 ) — — Total current liabilities 1,742 (703 ) 522 — 1,561 Long-term portion of debt and capital lease obligations 3,496 — 56 — 3,552 Deferred compensation 14 — 1 — 15 Deferred income taxes 404 933 (13 ) — 1,324 Other long-term liabilities 135 — 20 — 155 Total liabilities 5,791 230 586 — 6,607 Equity: QVC, Inc. shareholder's equity 6,102 4,290 2,241 (6,531 ) 6,102 Noncontrolling interest — — 136 — 136 Total equity 6,102 4,290 2,377 (6,531 ) 6,238 Total liabilities and equity $ 11,893 4,520 2,963 (6,531 ) 12,845
Guarantor Non-guarantor Subsidiary Financial Information, Balance Sheets, Prior Period	Condensed consolidating balance sheet - 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 Condensed consolidating balance sheets - Adjustments 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 $ — — — — — Restricted cash — — — — — Accounts receivable, net — — — — — Inventories — — — — — Deferred income taxes — — — — — Prepaid expenses — — — — — Total current assets — — — — — Property, plant and equipment, net — — — — — Cable and satellite television distribution rights, net — — — — — Goodwill — — — — — Other intangible assets, net — — — — — Other noncurrent assets — — — — — Investments in subsidiaries 1,055 — — (1,055 ) — Total assets $ 1,055 — — (1,055 ) — Liabilities and equity Current liabilities: Current portion of debt and capital lease obligations $ — — — — — Accounts payable-trade — — — — — Accrued liabilities — — — — — Intercompany accounts payable (receivable) 1,055 (405 ) (650 ) — — Total current liabilities 1,055 (405 ) (650 ) — — Long-term portion of debt and capital lease obligations — Deferred compensation — — — — — Deferred income taxes — — — — — Other long-term liabilities — — — — — Total liabilities 1,055 (405 ) (650 ) — — Equity: QVC, Inc. shareholder's equity — 405 650 (1,055 ) — Noncontrolling interest — — — — — Total equity — 405 650 (1,055 ) — Total liabilities and equity $ 1,055 — — (1,055 ) — Condensed consolidating balance sheets - As previously reported 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
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Current Period	Condensed consolidating statements of operations Three months ended September 30, 2013   (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net revenue $ 1,319 190 675 (237 ) 1,947 Cost of goods sold 833 26 427 (64 ) 1,222 Gross profit 486 164 248 (173 ) 725 Operating expenses: Operating 39 49 88 — 176 Selling, general and administrative, including stock-based compensation 237 1 86 (173 ) 151 Depreciation 10 1 15 — 26 Amortization of intangible assets 51 37 25 — 113 Intercompany management expense (income) 14 (1 ) (13 ) — — 351 87 201 (173 ) 466 Operating income 135 77 47 — 259 Other (expense) income: Equity in losses of investee — — (2 ) — (2 ) Interest expense, net (52 ) — — — (52 ) Foreign currency (loss) gain (9 ) — 8 — (1 ) Intercompany interest (expense) income (4 ) 13 (9 ) — — (65 ) 13 (3 ) — (55 ) Income before income taxes 70 90 44 — 204 Income tax expense (21 ) (27 ) (22 ) — (70 ) Equity in earnings of subsidiaries, net of tax 85 3 — (88 ) — Net income 134 66 22 (88 ) 134 Less net income attributable to the noncontrolling interest (9 ) — (9 ) 9 (9 ) Net income attributable to QVC, Inc. shareholder $ 125 66 13 (79 ) 125 Nine months ended September 30, 2013   (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net revenue $ 3,959 555 2,065 (697 ) 5,882 Cost of goods sold 2,512 74 1,300 (185 ) 3,701 Gross profit 1,447 481 765 (512 ) 2,181 Operating expenses: Operating 114 143 263 — 520 Selling, general and administrative, including stock-based compensation 700 1 255 (512 ) 444 Depreciation 28 4 57 — 89 Amortization of intangible assets 153 107 64 — 324 Intercompany management expense (income) 46 (8 ) (38 ) — — 1,041 247 601 (512 ) 1,377 Operating income 406 234 164 — 804 Other (expense) income: Equity in losses of investee — — (3 ) — (3 ) Gains on financial instruments 12 — 3 — 15 Interest expense, net (164 ) (1 ) — — (165 ) Foreign currency (loss) gain (12 ) (1 ) 11 — (2 ) Loss on extinguishment of debt (57 ) — — — (57 ) Intercompany interest (expense) income (11 ) 37 (26 ) — — (232 ) 35 (15 ) — (212 ) Income before income taxes 174 269 149 — 592 Income tax expense (52 ) (87 ) (74 ) — (213 ) Equity in earnings of subsidiaries, net of tax 257 29 — (286 ) — Net income 379 211 75 (286 ) 379 Less net income attributable to the noncontrolling interest (34 ) — (34 ) 34 (34 ) Net income attributable to QVC, Inc. shareholder $ 345 211 41 (252 ) 345
Guarantor Non-guarantor Subsidiary Financial Information, Statements of Operations, Prior Period	Nine months ended September 30, 2012   (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net revenue $ 3,804 534 2,168 (682 ) 5,824 Cost of goods sold 2,421 81 1,363 (185 ) 3,680 Gross profit 1,383 453 805 (497 ) 2,144 Operating expenses: Operating 110 137 275 — 522 Selling, general and administrative, including stock-based compensation 666 — 249 (497 ) 418 Depreciation 26 3 63 — 92 Amortization of intangible assets 148 98 47 — 293 Intercompany management expense (income) 54 (20 ) (34 ) — — 1,004 218 600 (497 ) 1,325 Operating income 379 235 205 — 819 Other (expense) income: Equity in losses of investee — — (3 ) — (3 ) Gains on financial instruments 36 — — — 36 Interest (expense) income (173 ) — 1 — (172 ) Foreign currency (loss) gain (11 ) 2 8 — (1 ) Intercompany interest (expense) income (10 ) 37 (27 ) — — (158 ) 39 (21 ) — (140 ) Income before income taxes 221 274 184 — 679 Income tax expense (81 ) (84 ) (82 ) — (247 ) Equity in earnings of subsidiaries, net of tax 292 57 — (349 ) — Net income 432 247 102 (349 ) 432 Less net income attributable to the noncontrolling interest (44 ) — (44 ) 44 (44 ) Net income attributable to QVC, Inc. shareholder $ 388 247 58 (305 ) 388 Condensed consolidating statements of operations - As previously reported Three months ended September 30, 2012   (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net revenue $ 1,301 180 667 (230 ) 1,918 Cost of goods sold 817 27 438 (66 ) 1,216 Gross profit 484 153 229 (164 ) 702 Operating expenses: Operating 44 46 81 — 171 Selling, general and administrative, including stock-based compensation 226 — 80 (164 ) 142 Depreciation 9 1 18 — 28 Amortization of intangible assets 52 33 16 — 101 Intercompany management expense (income) 14 (5 ) (9 ) — — 345 75 186 (164 ) 442 Operating income 139 78 43 — 260 Other (expense) income: Equity in losses of investee — — (3 ) — (3 ) Gains on financial instruments 12 — — — 12 Interest expense, net (61 ) — — — (61 ) Foreign currency (loss) gain (6 ) 2 5 — 1 Intercompany interest (expense) income (3 ) 12 (9 ) — — (58 ) 14 (7 ) — (51 ) Income before income taxes 81 92 36 — 209 Income tax expense (17 ) (30 ) (26 ) — (73 ) Equity in earnings of subsidiaries, net of tax 57 23 — (80 ) — Net income 121 85 10 (80 ) 136 Less net income attributable to the noncontrolling interest — — (15 ) — (15 ) Net income (loss) attributable to QVC, Inc. shareholder $ 121 85 (5 ) (80 ) 121 Condensed consolidating statements of operations - Adjusted Three months ended September 30, 2012   (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net revenue $ 1,249 180 719 (230 ) 1,918 Cost of goods sold 801 27 454 (66 ) 1,216 Gross profit 448 153 265 (164 ) 702 Operating expenses: Operating 37 46 88 — 171 Selling, general and administrative, including stock-based compensation 226 — 80 (164 ) 142 Depreciation 9 1 18 — 28 Amortization of intangible assets 52 33 16 — 101 Intercompany management expense (income) 14 (5 ) (9 ) — — 338 75 193 (164 ) 442 Operating income 110 78 72 — 260 Other (expense) income: Equity in losses of investee — — (3 ) — (3 ) Gains on financial instruments 12 — — — 12 Interest expense, net (61 ) — — — (61 ) Foreign currency (loss) gain (6 ) 2 5 — 1 Intercompany interest (expense) income (3 ) 12 (9 ) — — (58 ) 14 (7 ) — (51 ) Income before income taxes 52 92 65 — 209 Income tax expense (17 ) (30 ) (26 ) — (73 ) Equity in earnings of subsidiaries, net of tax 101 23 — (124 ) — Net income 136 85 39 (124 ) 136 Less net income attributable to the noncontrolling interest (15 ) — (15 ) 15 (15 ) Net income attributable to QVC, Inc. shareholder $ 121 85 24 (109 ) 121 Condensed consolidating statements of operations - Adjustments Nine months ended September 30, 2012   (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net revenue $ (159 ) — 159 — — Cost of goods sold (49 ) — 49 — — Gross profit (110 ) — 110 — — Operating expenses: Operating (22 ) — 22 — — Selling, general and administrative, including stock-based compensation — — — — — Depreciation — — — — — Amortization of intangible assets — — — — — Intercompany management expense (income) — — — — — (22 ) — 22 — — Operating income (88 ) — 88 — — Other (expense) income: Equity in losses of investee — — — — — Gains on financial instruments — — — — — Interest expense (income) — — — — — Foreign currency (loss) gain — — — — — Intercompany interest (expense) income — — — — — — — — — — Income before income taxes (88 ) — 88 — — Income tax expense — — — — — Equity in earnings of subsidiaries, net of tax 132 — — (132 ) — Net income 44 — 88 (132 ) — Less net income attributable to the noncontrolling interest (44 ) — — 44 — Net income attributable to QVC, Inc. shareholder $ — — 88 (88 ) — Condensed consolidating statements of operations - Adjustments Three months ended September 30, 2012   (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net revenue $ (52 ) — 52 — — Cost of goods sold (16 ) — 16 — — Gross profit (36 ) — 36 — — Operating expenses: Operating (7 ) — 7 — — Selling, general and administrative, including stock-based compensation — — — — — Depreciation — — — — — Amortization of intangible assets — — — — — Intercompany management expense (income) — — — — — (7 ) — 7 — — Operating income (29 ) — 29 — — Other (expense) income: Equity in losses of investee — — — — — Gains on financial instruments — — — — — Interest expense, net — — — — — Foreign currency (loss) gain — — — — — Intercompany interest (expense) income — — — — — — — — — — Income before income taxes (29 ) — 29 — — Income tax expense — — — — — Equity in earnings of subsidiaries, net of tax 44 — — (44 ) — Net income 15 — 29 (44 ) — Less net income attributable to the noncontrolling interest (15 ) — — 15 — Net income attributable to QVC, Inc. shareholder $ — — 29 (29 ) — Condensed consolidating statements of operations - As previously reported Nine months ended September 30, 2012   (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net revenue $ 3,963 534 2,009 (682 ) 5,824 Cost of goods sold 2,470 81 1,314 (185 ) 3,680 Gross profit 1,493 453 695 (497 ) 2,144 Operating expenses: Operating 132 137 253 — 522 Selling, general and administrative, including stock-based compensation 666 — 249 (497 ) 418 Depreciation 26 3 63 — 92 Amortization of intangible assets 148 98 47 — 293 Intercompany management expense (income) 54 (20 ) (34 ) — — 1,026 218 578 (497 ) 1,325 Operating income 467 235 117 — 819 Other (expense) income: Equity in losses of investee — — (3 ) — (3 ) Gains on financial instruments 36 — — — 36 Interest (expense) income (173 ) — 1 — (172 ) Foreign currency (loss) gain (11 ) 2 8 — (1 ) Intercompany interest (expense) income (10 ) 37 (27 ) — — (158 ) 39 (21 ) — (140 ) Income before income taxes 309 274 96 — 679 Income tax expense (81 ) (84 ) (82 ) — (247 ) Equity in earnings of subsidiaries, net of tax 160 57 — (217 ) — Net income 388 247 14 (217 ) 432 Less net income attributable to the noncontrolling interest — — (44 ) — (44 ) Net income (loss) attributable to QVC, Inc. shareholder $ 388 247 (30 ) (217 ) 388
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Current Period	Nine months ended September 30, 2013   (in millions) Subsidiary issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net income $ 379 211 75 (286 ) 379 Foreign currency translation adjustments (39 ) — (39 ) 39 (39 ) Total comprehensive income 340 211 36 (247 ) 340 Comprehensive income attributable to noncontrolling interest (17 ) — (17 ) 17 (17 ) Comprehensive income attributable to QVC, Inc. shareholder $ 323 211 19 (230 ) 323 Condensed consolidating statements of comprehensive income Three months ended September 30, 2013   (in millions) Subsidiary issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net income $ 134 66 22 (88 ) 134 Foreign currency translation adjustments 68 — 68 (68 ) 68 Total comprehensive income 202 66 90 (156 ) 202 Comprehensive income attributable to noncontrolling interest (11 ) — (11 ) 11 (11 ) Comprehensive income attributable to QVC, Inc. shareholder $ 191 66 79 (145 ) 191
Guarantor Non-guarantor Subsidiary Financial Information, Comprehensive Income (Loss), Prior Period	Nine months ended September 30, 2012   (in millions) Subsidiary issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net income $ 432 247 102 (349 ) 432 Foreign currency translation adjustments (1 ) — (1 ) 1 (1 ) Total comprehensive income 431 247 101 (348 ) 431 Comprehensive income attributable to noncontrolling interest (41 ) — (41 ) 41 (41 ) Comprehensive income attributable to QVC, Inc. shareholder $ 390 247 60 (307 ) 390 Three months ended September 30, 2012   (in millions) Subsidiary issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Net income $ 136 85 39 (124 ) 136 Foreign currency translation adjustments 35 — 35 (35 ) 35 Total comprehensive income 171 85 74 (159 ) 171 Comprehensive income attributable to noncontrolling interest (18 ) — (18 ) 18 (18 ) Comprehensive income attributable to QVC, Inc. shareholder $ 153 85 56 (141 ) 153
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Current Period	Condensed consolidating statements of cash flows Nine months ended September 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 $ 355 217 31 — 603 Investing activities: Capital expenditures, net (58 ) (3 ) (60 ) — (121 ) Expenditures for cable and satellite television distribution rights, net — (41 ) — — (41 ) Decrease in restricted cash 2 — — — 2 Changes in other noncurrent assets 3 — (4 ) — (1 ) Intercompany investing activities 272 165 — (437 ) — Net cash provided by (used in) investing activities 219 121 (64 ) (437 ) (161 ) Financing activities: Principal payments of debt and capital lease obligations (2,154 ) — (7 ) — (2,161 ) Principal borrowings of debt from senior secured credit facility 1,198 — — — 1,198 Proceeds from issuance of senior secured notes, net of original issue discount 1,050 — — — 1,050 Proceeds from master promissory note with Liberty 300 — — — 300 Payment of debt origination fees (16 ) — — — (16 ) Payment of bond premium fees (46 ) — — — (46 ) Other financing activities 9 — — — 9 Dividends paid to Liberty (900 ) — — — (900 ) Dividend paid to noncontrolling interest — — (25 ) — (25 ) Net short-term intercompany debt borrowings (repayments) 38 55 (93 ) — — Intercompany financing activities (120 ) (388 ) 71 437 — Net cash used in financing activities (641 ) (333 ) (54 ) 437 (591 ) Effect of foreign exchange rate changes on cash and cash equivalents — — (22 ) — (22 ) Net (decrease) increase in cash and cash equivalents (67 ) 5 (109 ) — (171 ) Cash and cash equivalents, beginning of period 75 165 300 — 540 Cash and cash equivalents, end of period $ 8 170 191 — 369
Guarantor Non-guarantor Subsidiary Financial Information, Schedule of Cash Flows, Prior Period	Condensed consolidating statements of cash flows - As previously reported Nine months ended September 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 $ 506 252 117 — 875 Investing activities: Capital expenditures, net (38 ) (2 ) (125 ) — (165 ) Expenditures for cable and satellite television distribution rights — (1 ) — — (1 ) Cash paid for joint ventures and acquisitions of businesses, net of cash received (16 ) — (55 ) — (71 ) Decrease in restricted cash 2 — — — 2 Changes in other noncurrent assets and liabilities 4 (1 ) (4 ) — (1 ) Intercompany investing activities 304 231 — (535 ) — Net cash provided by (used in) investing activities 256 227 (184 ) (535 ) (236 ) Financing activities: Principal payments of debt and capital lease obligations (1,073 ) — (7 ) — (1,080 ) Principal borrowings of debt from senior secured credit facility 1,493 — — — 1,493 Proceeds from issuance of senior secured notes 500 — — — 500 Payment of debt origination fees (8 ) — — — (8 ) Dividends paid to Liberty (1,682 ) — — — (1,682 ) Dividend paid to noncontrolling interest — — (29 ) — (29 ) Net short-term intercompany debt borrowings (repayments) 25 (21 ) (4 ) — — Intercompany financing activities (4 ) (568 ) 37 535 — Net cash used in financing activities (749 ) (589 ) (3 ) 535 (806 ) Effect of foreign exchange rate changes on cash and cash equivalents — — (7 ) — (7 ) Net increase (decrease) in cash and cash equivalents 13 (110 ) (77 ) — (174 ) Cash and cash equivalents, beginning of period 3 223 334 — 560 Cash and cash equivalents, end of period $ 16 113 257 — 386 Condensed consolidating statements of cash flows - Adjustments Nine months ended September 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 (used in) provided by operating activities $ (88 ) — 88 — — Investing activities: Capital expenditures, net — — — — — Expenditures for cable and satellite television distribution rights, net — — — — — Cash paid for joint ventures and acquisitions of businesses, net of cash received 16 — (16 ) — — Decrease in restricted cash — — — — — Changes in other noncurrent assets — — — — — Intercompany investing activities 181 — — (181 ) — Net cash provided by (used in) investing activities 197 — (16 ) (181 ) — Financing activities: Principal payments of debt and capital lease obligations — — — — — Principal borrowings of debt from senior secured credit facility — — — — — Proceeds from issuance of senior secured notes — — — — — Payment of debt origination fees — — — — — Dividends paid to Liberty — — — — — Dividend paid to noncontrolling interest — — — — — Net short-term intercompany debt borrowings (repayments) 98 (14 ) (84 ) — — Intercompany financing activities (207 ) 14 12 181 — Net cash used in financing activities (109 ) — (72 ) 181 — Effect of foreign exchange rate changes on cash and cash equivalents — — — — — Net increase (decrease) in cash and cash equivalents — — — — — Cash and cash equivalents, beginning of period — — — — — Cash and cash equivalents, end of period $ — — — — — Condensed consolidating statements of cash flows - Adjusted Nine months ended September 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 $ 418 252 205 — 875 Investing activities: Capital expenditures, net (38 ) (2 ) (125 ) — (165 ) Expenditures for cable and satellite television distribution rights, net — (1 ) — — (1 ) Cash paid for joint ventures and acquisitions of businesses, net of cash received — — (71 ) — (71 ) Decrease in restricted cash 2 — — — 2 Changes in other noncurrent assets 4 (1 ) (4 ) — (1 ) Intercompany investing activities 485 231 — (716 ) — Net cash provided by (used in) investing activities 453 227 (200 ) (716 ) (236 ) Financing activities: Principal payments of debt and capital lease obligations (1,073 ) — (7 ) — (1,080 ) Principal borrowings of debt from senior secured credit facility 1,493 — — — 1,493 Proceeds from issuance of senior secured notes 500 — — — 500 Payment of debt origination fees (8 ) — — — (8 ) Dividends paid to Liberty (1,682 ) — — — (1,682 ) Dividend paid to noncontrolling interest — — (29 ) — (29 ) Net short-term intercompany debt borrowings (repayments) 123 (35 ) (88 ) — — Intercompany financing activities (211 ) (554 ) 49 716 — Net cash used in financing activities (858 ) (589 ) (75 ) 716 (806 ) Effect of foreign exchange rate changes on cash and cash equivalents — — (7 ) — (7 ) Net increase (decrease) in cash and cash equivalents 13 (110 ) (77 ) — (174 ) Cash and cash equivalents, beginning of period 3 223 334 — 560 Cash and cash equivalents, end of period $ 16 113 257 — 386
Effect of Prior Period Adjustments on Equity	he effect of the adjustment on equity as of January 1, 2012 was as follows: (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries As previously reported $ 7,890 3,465 1,716 (5,052 ) 8,019 Adjustment — 450 465 (915 ) — Adjusted $ 7,890 3,915 2,181 (5,967 ) 8,019
Effect of Prior Period Adjustments on Net Income	The adjusted net income for each prior interim period in the current fiscal year is presented in the below tables. (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Three months ended June 30, 2013: Net income - Adjusted $ 139 66 26 (92 ) 139 Six months ended June 30, 2013 Net income - Adjusted 245 145 53 (198 ) 245 Three months ended March 31, 2013: Net income - Adjusted 106 79 27 (106 ) 106 (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Three months ended June 30, 2013: Net income (loss) - As previously reported $ 139 66 (23 ) (43 ) 139 Six months ended June 30, 2013 Net income (loss) - As previously reported 245 145 (31 ) (114 ) 245 Three months ended March 31, 2013: Net income (loss) - As previously reported 106 79 (8 ) (71 ) 106 (in millions) Parent issuer- QVC, Inc. Combined subsidiary guarantors Combined non-guarantor subsidiaries Eliminations Consolidated- QVC, Inc. and subsidiaries Three months ended June 30, 2013: Net income - Adjustment $ — — 49 (49 ) — Six months ended June 30, 2013 Net income - Adjustment — — 84 (84 ) — Three months ended March 31, 2013: Net income - Adjustment — — 35 (35 ) —