Qurate Retail, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Revenue (Notes)

Revenue (Notes)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

Disaggregated revenue by segment and product category consisted of the following:



	Three months ended June 30, 2019				Six months ended June 30, 2019
(in millions)	QxH		QVC-International	Total	QxH	QVC-International	Total
Home	$	655	231	886	1,334	478	1,812
Apparel	344		108	452	670	220	890
Beauty	317		158	475	609	301	910
Accessories	247		65	312	467	127	594
Electronics	173		22	195	354	47	401
Jewelry	93		50	143	205	102	307
Other revenue	45		6	51	92	9	101
Total net revenue	$	1,874	640	2,514	3,731	1,284	5,015



	Three months ended June 30, 2018				Six months ended June 30, 2018
(in millions)	QxH		QVC-International	Total	QxH	QVC-International	Total
Home	$	651	235	886	1,377	495	1,872
Apparel	378		116	494	703	235	938
Beauty	316		158	474	622	302	924
Accessories	230		72	302	448	139	587
Electronics	164		22	186	338	48	386
Jewelry	113		48	161	245	103	348
Other revenue	48		5	53	93	10	103
Total net revenue	$	1,900	656	2,556	3,826	1,332	5,158

Consumer Product Revenue and Other Revenue

QVC's revenue includes sales of consumer products in the following categories; home, apparel, beauty, accessories, electronics and jewelry, which are primarily sold through live merchandise-focused televised shopping programs and via our websites and other interactive media.

Other revenue consists primarily of income generated from our Private Label Credit Card ("PLCC") program in which a large consumer financial services company provides revolving credit directly to QVC's customers for the sole purpose of purchasing merchandise or services with a PLCC. In return, the Company receives a portion of the net economics of the credit card program.

Revenue Recognition

For the three and six months ended June 30, 2019 and 2018, respectively, revenue is recognized when obligations with our customer are satisfied; generally this occurs at the time of shipment to our customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration we expect to receive in exchange for transferring goods, net of allowances for returns.

The Company generally recognizes revenue related to the PLCC program over time as the PLCC is used by QVC's customers.

Sales, value add, use and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue.

The Company has elected to treat shipping and handling activities that occur after the customer obtains control of the goods as a fulfillment cost and not as a promised good or service. Accordingly, the Company accrues the related shipping costs and recognizes revenue upon delivery of the goods to the shipping carrier. In electing this accounting policy, all shipping and handling activities will be treated as fulfillment costs.

The Company generally has payment terms with its customers of one year or less and has elected the practical expedient applicable to such contracts not to consider the time value of money.

Significant Judgments

Our products are generally sold with a right of return and we may provide other credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. The Company has determined that it is generally the principal in vendor arrangements as the Company can establish control over the goods prior to shipment. Accordingly, the Company records revenue for these arrangements on a gross basis.