| Guarantor/Non-guarantor Subsidiary Financial Information |
Guarantor/Non-guarantor Subsidiary Financial Information
The following information contains the 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 Rocky Mount, Inc.; QVC San Antonio, LLC; QVC Global Holdings I, Inc.; and QVC Global Holdings II, Inc.) and the combined non-guarantor subsidiaries pursuant to Rule 3-10 of Regulation S-X.
In connection with the Third Amended and Restated Credit Agreement (refer to note 8), QVC International Ltd is no longer a guarantor subsidiary, and is reflected with the combined non-guarantor subsidiaries as of and for the year ended December 31, 2016.
These consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the Company's 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, interest income and expense and gains on intercompany asset transfers. 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.
With One Q, beginning in 2016, as mentioned in note 15, QVC began allocating certain additional corporate costs for management reporting purposes, which were historically included in its QVC-U.S segment, to the QVC-International segment.
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 consolidated financial statements.
Consolidating Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
(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 |
$ |
2 |
|
33 |
|
225 |
|
— |
|
260 |
|
Restricted cash |
5 |
|
— |
|
3 |
|
— |
|
8 |
|
Accounts receivable, net |
1,076 |
|
— |
|
312 |
|
— |
|
1,388 |
|
Inventories |
758 |
|
— |
|
261 |
|
— |
|
1,019 |
|
Prepaid expenses and other current assets |
28 |
|
— |
|
23 |
|
— |
|
51 |
|
Total current assets |
1,869 |
|
33 |
|
824 |
|
— |
|
2,726 |
|
Property and equipment, net |
295 |
|
60 |
|
650 |
|
— |
|
1,005 |
|
Television distribution rights, net |
— |
|
78 |
|
— |
|
— |
|
78 |
|
Goodwill |
4,190 |
|
— |
|
885 |
|
— |
|
5,075 |
|
Other intangible assets, net |
539 |
|
2,048 |
|
18 |
|
— |
|
2,605 |
|
Other noncurrent assets |
14 |
|
— |
|
47 |
|
— |
|
61 |
|
Investments in subsidiaries |
3,579 |
|
1,626 |
|
— |
|
(5,205 |
) |
— |
|
Total assets |
$ |
10,486 |
|
3,845 |
|
2,424 |
|
(5,205 |
) |
11,550 |
|
Liabilities and equity |
Current liabilities: |
|
|
|
|
|
Current portion of debt and capital lease obligations |
$ |
3 |
|
— |
|
14 |
|
— |
|
17 |
|
Accounts payable-trade |
455 |
|
— |
|
301 |
|
— |
|
756 |
|
Accrued liabilities |
366 |
|
227 |
|
279 |
|
— |
|
872 |
|
Intercompany accounts payable (receivable) |
453 |
|
(1,513 |
) |
1,060 |
|
— |
|
— |
|
Total current liabilities |
1,277 |
|
(1,286 |
) |
1,654 |
|
— |
|
1,645 |
|
Long-term portion of debt and capital lease obligations |
5,033 |
|
— |
|
140 |
|
— |
|
5,173 |
|
Deferred income taxes |
52 |
|
468 |
|
(47 |
) |
— |
|
473 |
|
Other long-term liabilities |
92 |
|
— |
|
25 |
|
— |
|
117 |
|
Total liabilities |
6,454 |
|
(818 |
) |
1,772 |
|
— |
|
7,408 |
|
Equity: |
|
|
|
|
|
QVC, Inc. stockholder's equity |
4,032 |
|
4,663 |
|
542 |
|
(5,205 |
) |
4,032 |
|
Noncontrolling interest |
— |
|
— |
|
110 |
|
— |
|
110 |
|
Total equity |
4,032 |
|
4,663 |
|
652 |
|
(5,205 |
) |
4,142 |
|
Total liabilities and equity |
$ |
10,486 |
|
3,845 |
|
2,424 |
|
(5,205 |
) |
11,550 |
|
Consolidating Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
(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 |
$ |
2 |
|
97 |
|
185 |
|
— |
|
284 |
|
Restricted cash |
8 |
|
— |
|
2 |
|
— |
|
10 |
|
Accounts receivable, net |
958 |
|
— |
|
288 |
|
— |
|
1,246 |
|
Inventories |
726 |
|
— |
|
224 |
|
— |
|
950 |
|
Prepaid expenses and other current assets |
22 |
|
— |
|
24 |
|
— |
|
46 |
|
Total current assets |
1,716 |
|
97 |
|
723 |
|
— |
|
2,536 |
|
Property and equipment, net |
317 |
|
63 |
|
651 |
|
— |
|
1,031 |
|
Television distribution rights, net |
— |
|
167 |
|
16 |
|
— |
|
183 |
|
Goodwill |
4,190 |
|
— |
|
805 |
|
— |
|
4,995 |
|
Other intangible assets, net |
666 |
|
2,049 |
|
23 |
|
— |
|
2,738 |
|
Other noncurrent assets |
15 |
|
— |
|
47 |
|
— |
|
62 |
|
Investments in subsidiaries |
3,389 |
|
1,030 |
|
— |
|
(4,419 |
) |
— |
|
Total assets |
$ |
10,293 |
|
3,406 |
|
2,265 |
|
(4,419 |
) |
11,545 |
|
Liabilities and equity |
Current liabilities: |
|
|
|
|
|
Current portion of debt and capital lease obligations |
$ |
3 |
|
— |
|
11 |
|
— |
|
14 |
|
Accounts payable-trade |
425 |
|
— |
|
253 |
|
— |
|
678 |
|
Accrued liabilities |
74 |
|
234 |
|
461 |
|
— |
|
769 |
|
Intercompany accounts payable (receivable) |
623 |
|
(246 |
) |
(377 |
) |
— |
|
— |
|
Total current liabilities |
1,125 |
|
(12 |
) |
348 |
|
— |
|
1,461 |
|
Long-term portion of debt and capital lease obligations |
5,132 |
|
— |
|
143 |
|
— |
|
5,275 |
|
Deferred income taxes |
145 |
|
707 |
|
(74 |
) |
— |
|
778 |
|
Other long-term liabilities |
96 |
|
— |
|
40 |
|
— |
|
136 |
|
Total liabilities |
6,498 |
|
695 |
|
457 |
|
— |
|
7,650 |
|
Equity: |
|
|
|
|
|
QVC, Inc. stockholder's equity |
3,795 |
|
2,711 |
|
1,708 |
|
(4,419 |
) |
3,795 |
|
Noncontrolling interest |
— |
|
— |
|
100 |
|
— |
|
100 |
|
Total equity |
3,795 |
|
2,711 |
|
1,808 |
|
(4,419 |
) |
3,895 |
|
Total liabilities and equity |
$ |
10,293 |
|
3,406 |
|
2,265 |
|
(4,419 |
) |
11,545 |
|
Consolidating Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2017 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net revenue |
$ |
6,298 |
|
1,000 |
|
2,848 |
|
(1,375 |
) |
8,771 |
|
Operating costs and expenses: |
|
|
|
|
|
Cost of goods sold (exclusive of depreciation and amortization shown separately below) |
3,877 |
|
157 |
|
1,744 |
|
(180 |
) |
5,598 |
|
Operating |
433 |
|
265 |
|
277 |
|
(374 |
) |
601 |
|
Selling, general and administrative, including stock-based compensation |
1,097 |
|
2 |
|
428 |
|
(821 |
) |
706 |
|
Depreciation |
67 |
|
7 |
|
81 |
|
— |
|
155 |
|
Amortization |
187 |
|
142 |
|
35 |
|
— |
|
364 |
|
|
5,661 |
|
573 |
|
2,565 |
|
(1,375 |
) |
7,424 |
|
Operating income |
637 |
|
427 |
|
283 |
|
— |
|
1,347 |
|
Other (expense) income: |
|
|
|
|
|
Equity in losses of investee |
— |
|
— |
|
(3 |
) |
— |
|
(3 |
) |
Interest (expense) income, net |
(215 |
) |
1 |
|
— |
|
— |
|
(214 |
) |
Foreign currency (loss) gain |
(5 |
) |
1 |
|
(2 |
) |
— |
|
(6 |
) |
Intercompany interest (expense) income |
(12 |
) |
96 |
|
(84 |
) |
— |
|
— |
|
|
(232 |
) |
98 |
|
(89 |
) |
— |
|
(223 |
) |
Income before income taxes |
405 |
|
525 |
|
194 |
|
— |
|
1,124 |
|
Income tax (expense) benefit |
(129 |
) |
80 |
|
(103 |
) |
— |
|
(152 |
) |
Equity in earnings of subsidiaries, net of tax |
696 |
|
47 |
|
— |
|
(743 |
) |
— |
|
Net income |
972 |
|
652 |
|
91 |
|
(743 |
) |
972 |
|
Less net income attributable to the noncontrolling interest |
(46 |
) |
— |
|
(46 |
) |
46 |
|
(46 |
) |
Net income attributable to QVC, Inc. stockholder |
$ |
926 |
|
652 |
|
45 |
|
(697 |
) |
926 |
|
Consolidating Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2016 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net revenue |
$ |
6,179 |
|
1,001 |
|
2,787 |
|
(1,285 |
) |
8,682 |
|
Operating costs and expenses: |
|
|
|
|
|
Cost of goods sold (exclusive of depreciation and amortization shown separately below) |
3,855 |
|
169 |
|
1,726 |
|
(210 |
) |
5,540 |
|
Operating |
414 |
|
258 |
|
274 |
|
(340 |
) |
606 |
|
Selling, general and administrative, including stock-based compensation |
1,116 |
|
1 |
|
346 |
|
(735 |
) |
728 |
|
Depreciation |
57 |
|
7 |
|
78 |
|
— |
|
142 |
|
Amortization |
245 |
|
168 |
|
50 |
|
— |
|
463 |
|
|
5,687 |
|
603 |
|
2,474 |
|
(1,285 |
) |
7,479 |
|
Operating income |
492 |
|
398 |
|
313 |
|
— |
|
1,203 |
|
Other (expense) income: |
|
|
|
|
|
Equity in losses of investee |
— |
|
— |
|
(6 |
) |
— |
|
(6 |
) |
Gain on financial instruments |
2 |
|
— |
|
— |
|
— |
|
2 |
|
Interest (expense) income, net |
(211 |
) |
— |
|
1 |
|
— |
|
(210 |
) |
Foreign currency gain |
17 |
|
— |
|
21 |
|
— |
|
38 |
|
Intercompany interest (expense) income |
(2 |
) |
1 |
|
1 |
|
— |
|
— |
|
|
(194 |
) |
1 |
|
17 |
|
— |
|
(176 |
) |
Income before income taxes |
298 |
|
399 |
|
330 |
|
— |
|
1,027 |
|
Income tax expense |
(114 |
) |
(156 |
) |
(115 |
) |
— |
|
(385 |
) |
Equity in earnings of subsidiaries, net of tax |
458 |
|
189 |
|
— |
|
(647 |
) |
— |
|
Net income |
642 |
|
432 |
|
215 |
|
(647 |
) |
642 |
|
Less net income attributable to the noncontrolling interest |
(38 |
) |
— |
|
(38 |
) |
38 |
|
(38 |
) |
Net income attributable to QVC, Inc. stockholder |
$ |
604 |
|
432 |
|
177 |
|
(609 |
) |
604 |
|
Consolidating Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2015 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net revenue |
$ |
6,416 |
|
962 |
|
2,717 |
|
(1,352 |
) |
8,743 |
|
Operating costs and expenses: |
|
|
|
|
|
Cost of goods sold (exclusive of depreciation and amortization shown separately below) |
4,018 |
|
109 |
|
1,624 |
|
(223 |
) |
5,528 |
|
Operating |
338 |
|
265 |
|
293 |
|
(289 |
) |
607 |
|
Selling, general and administrative, including stock-based compensation |
1,180 |
|
1 |
|
404 |
|
(840 |
) |
745 |
|
Depreciation |
43 |
|
8 |
|
83 |
|
— |
|
134 |
|
Amortization |
233 |
|
163 |
|
58 |
|
— |
|
454 |
|
|
5,812 |
|
546 |
|
2,462 |
|
(1,352 |
) |
7,468 |
|
Operating income |
604 |
|
416 |
|
255 |
|
— |
|
1,275 |
|
Other (expense) income: |
|
|
|
|
|
Equity in losses of investee |
— |
|
— |
|
(9 |
) |
— |
|
(9 |
) |
Interest expense, net |
(205 |
) |
— |
|
(3 |
) |
— |
|
(208 |
) |
Foreign currency gain (loss) |
15 |
|
(1 |
) |
— |
|
— |
|
14 |
|
Loss on extinguishment of debt |
(21 |
) |
— |
|
— |
|
— |
|
(21 |
) |
Intercompany interest (expense) income |
(7 |
) |
(51 |
) |
58 |
|
— |
|
— |
|
|
(218 |
) |
(52 |
) |
46 |
|
— |
|
(224 |
) |
Income before income taxes |
386 |
|
364 |
|
301 |
|
— |
|
1,051 |
|
Income tax expense |
(136 |
) |
(153 |
) |
(100 |
) |
— |
|
(389 |
) |
Equity in earnings of subsidiaries, net of tax |
412 |
|
262 |
|
— |
|
(674 |
) |
— |
|
Net income |
662 |
|
473 |
|
201 |
|
(674 |
) |
662 |
|
Less net income attributable to the noncontrolling interest |
(34 |
) |
— |
|
(34 |
) |
34 |
|
(34 |
) |
Net income attributable to QVC, Inc. stockholder |
$ |
628 |
|
473 |
|
167 |
|
(640 |
) |
628 |
|
Consolidating Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2017 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net income |
$ |
972 |
|
652 |
|
91 |
|
(743 |
) |
972 |
|
Foreign currency translation adjustments, net of tax |
135 |
|
— |
|
135 |
|
(135 |
) |
135 |
|
Total comprehensive income |
1,107 |
|
652 |
|
226 |
|
(878 |
) |
1,107 |
|
Comprehensive income attributable to noncontrolling interest |
(50 |
) |
— |
|
(50 |
) |
50 |
|
(50 |
) |
Comprehensive income attributable to QVC, Inc. stockholder |
$ |
1,057 |
|
652 |
|
176 |
|
(828 |
) |
1,057 |
|
Consolidating Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2016 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net income |
$ |
642 |
|
432 |
|
215 |
|
(647 |
) |
642 |
|
Foreign currency translation adjustments, net of tax |
(83 |
) |
— |
|
(83 |
) |
83 |
|
(83 |
) |
Total comprehensive income |
559 |
|
432 |
|
132 |
|
(564 |
) |
559 |
|
Comprehensive income attributable to noncontrolling interest |
(39 |
) |
— |
|
(39 |
) |
39 |
|
(39 |
) |
Comprehensive income attributable to QVC, Inc. stockholder |
$ |
520 |
|
432 |
|
93 |
|
(525 |
) |
520 |
|
Consolidating Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2015 |
|
(in millions) |
Parent
issuer-
QVC, Inc. |
|
Combined
subsidiary
guarantors |
|
Combined
non-guarantor
subsidiaries |
|
Eliminations |
|
Consolidated-
QVC, Inc. and
subsidiaries |
|
Net income |
$ |
662 |
|
473 |
|
201 |
|
(674 |
) |
662 |
|
Foreign currency translation adjustments, net of tax |
(102 |
) |
— |
|
(102 |
) |
102 |
|
(102 |
) |
Total comprehensive income |
560 |
|
473 |
|
99 |
|
(572 |
) |
560 |
|
Comprehensive income attributable to noncontrolling interest |
(33 |
) |
— |
|
(33 |
) |
33 |
|
(33 |
) |
Comprehensive income attributable to QVC, Inc. stockholder |
$ |
527 |
|
473 |
|
66 |
|
(539 |
) |
527 |
|
Consolidating Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2017 |
|
(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 |
$ |
641 |
|
507 |
|
54 |
|
— |
|
1,202 |
|
Investing activities: |
|
|
|
|
|
Capital expenditures |
(103 |
) |
(4 |
) |
(45 |
) |
— |
|
(152 |
) |
Expenditures for television distribution rights |
— |
|
(50 |
) |
— |
|
— |
|
(50 |
) |
Decrease (increase) in restricted cash |
3 |
|
— |
|
(1 |
) |
— |
|
2 |
|
Changes in other noncurrent assets |
(1 |
) |
— |
|
— |
|
— |
|
(1 |
) |
Intercompany investing activities |
545 |
|
(1,507 |
) |
— |
|
962 |
|
— |
|
Net cash provided by (used in) investing activities |
444 |
|
(1,561 |
) |
(46 |
) |
962 |
|
(201 |
) |
Financing activities: |
|
|
|
|
|
Principal payments of debt and capital lease obligations |
(2,268 |
) |
— |
|
(10 |
) |
— |
|
(2,278 |
) |
Principal borrowings of debt from senior secured credit facility |
2,162 |
|
— |
|
— |
|
— |
|
2,162 |
|
Dividends paid to Liberty Interactive Corporation |
(866 |
) |
— |
|
— |
|
— |
|
(866 |
) |
Dividends paid to noncontrolling interest |
— |
|
— |
|
(40 |
) |
— |
|
(40 |
) |
Other financing activities |
(16 |
) |
— |
|
— |
|
— |
|
(16 |
) |
Net short-term intercompany debt (repayments) borrowings |
(170 |
) |
(1,267 |
) |
1,437 |
|
— |
|
— |
|
Other intercompany financing activities |
73 |
|
2,257 |
|
(1,368 |
) |
(962 |
) |
— |
|
Net cash (used in) provided by financing activities |
(1,085 |
) |
990 |
|
19 |
|
(962 |
) |
(1,038 |
) |
Effect of foreign exchange rate changes on cash and cash equivalents |
— |
|
— |
|
13 |
|
— |
|
13 |
|
Net (decrease) increase in cash and cash equivalents |
— |
|
(64 |
) |
40 |
|
— |
|
(24 |
) |
Cash and cash equivalents, beginning of period |
2 |
|
97 |
|
185 |
|
— |
|
284 |
|
Cash and cash equivalents, end of period |
$ |
2 |
|
33 |
|
225 |
|
— |
|
260 |
|
Consolidating Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2016 |
|
(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 |
$ |
555 |
|
408 |
|
215 |
|
— |
|
1,178 |
|
Investing activities: |
|
|
|
|
|
Capital expenditures |
(141 |
) |
(2 |
) |
(36 |
) |
— |
|
(179 |
) |
Expenditures for television distribution rights |
— |
|
(38 |
) |
— |
|
— |
|
(38 |
) |
Decrease in restricted cash |
1 |
|
— |
|
— |
|
— |
|
1 |
|
Other investing activities |
(12 |
) |
— |
|
9 |
|
— |
|
(3 |
) |
Changes in other noncurrent assets |
(2 |
) |
— |
|
1 |
|
— |
|
(1 |
) |
Intercompany investing activities |
452 |
|
131 |
|
— |
|
(583 |
) |
— |
|
Net cash provided by (used in) investing activities |
298 |
|
91 |
|
(26 |
) |
(583 |
) |
(220 |
) |
Financing activities: |
|
|
|
|
|
Principal payments of debt and capital lease obligations |
(1,727 |
) |
— |
|
(6 |
) |
— |
|
(1,733 |
) |
Principal borrowings of debt from senior secured credit facility |
1,505 |
|
— |
|
— |
|
— |
|
1,505 |
|
Payment of debt origination fees |
(2 |
) |
— |
|
— |
|
— |
|
(2 |
) |
Dividends paid to Liberty |
(703 |
) |
— |
|
— |
|
— |
|
(703 |
) |
Dividends paid to noncontrolling interest |
— |
|
— |
|
(39 |
) |
— |
|
(39 |
) |
Other financing activities |
(9 |
) |
— |
|
— |
|
— |
|
(9 |
) |
Net short-term intercompany debt borrowings (repayments) |
61 |
|
(1,517 |
) |
1,456 |
|
— |
|
— |
|
Other intercompany financing activities |
24 |
|
1,003 |
|
(1,610 |
) |
583 |
|
— |
|
Net cash used in financing activities |
(851 |
) |
(514 |
) |
(199 |
) |
583 |
|
(981 |
) |
Effect of foreign exchange rate changes on cash and cash equivalents |
— |
|
— |
|
(20 |
) |
— |
|
(20 |
) |
Net increase (decrease) in cash and cash equivalents |
2 |
|
(15 |
) |
(30 |
) |
— |
|
(43 |
) |
Cash and cash equivalents, beginning of period |
— |
|
112 |
|
215 |
|
— |
|
327 |
|
Cash and cash equivalents, end of period |
$ |
2 |
|
97 |
|
185 |
|
— |
|
284 |
|
Consolidating Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2015 |
|
(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 |
$ |
274 |
|
314 |
|
440 |
|
— |
|
1,028 |
|
Investing activities: |
|
|
|
|
|
Capital expenditures |
(154 |
) |
(9 |
) |
(52 |
) |
— |
|
(215 |
) |
Expenditures for television distribution rights |
— |
|
(68 |
) |
(4 |
) |
— |
|
(72 |
) |
Decrease (increase) in restricted cash |
1 |
|
— |
|
(1 |
) |
— |
|
— |
|
Other investing activities |
2 |
|
— |
|
— |
|
— |
|
2 |
|
Changes in other noncurrent assets |
12 |
|
— |
|
(12 |
) |
— |
|
— |
|
Intercompany investing activities |
525 |
|
413 |
|
— |
|
(938 |
) |
— |
|
Net cash provided by (used in) investing activities |
386 |
|
336 |
|
(69 |
) |
(938 |
) |
(285 |
) |
Financing activities: |
|
|
|
|
|
Principal payments of debt and capital lease obligations |
(2,170 |
) |
— |
|
(7 |
) |
— |
|
(2,177 |
) |
Principal borrowings of debt from senior secured credit facility |
2,974 |
|
— |
|
— |
|
— |
|
2,974 |
|
Payment of debt origination fees |
(3 |
) |
— |
|
— |
|
— |
|
(3 |
) |
Payment of bond premium fees |
(18 |
) |
— |
|
— |
|
— |
|
(18 |
) |
Dividends paid to Liberty |
(1,485 |
) |
— |
|
— |
|
— |
|
(1,485 |
) |
Dividends paid to noncontrolling interest |
— |
|
— |
|
(36 |
) |
— |
|
(36 |
) |
Other financing activities |
(15 |
) |
— |
|
— |
|
— |
|
(15 |
) |
Net short-term intercompany debt (repayments) borrowings |
(822 |
) |
2,192 |
|
(1,370 |
) |
— |
|
— |
|
Other intercompany financing activities |
877 |
|
(2,853 |
) |
1,038 |
|
938 |
|
— |
|
Net cash used in financing activities |
(662 |
) |
(661 |
) |
(375 |
) |
938 |
|
(760 |
) |
Effect of foreign exchange rate changes on cash and cash equivalents |
— |
|
— |
|
(3 |
) |
— |
|
(3 |
) |
Net decrease in cash and cash equivalents |
(2 |
) |
(11 |
) |
(7 |
) |
— |
|
(20 |
) |
Cash and cash equivalents, beginning of period |
2 |
|
123 |
|
222 |
|
— |
|
347 |
|
Cash and cash equivalents, end of period |
$ |
— |
|
112 |
|
215 |
|
— |
|
327 |
|
|