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&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;The consolidated financial statements included the accounts of the Company and its majority&amp;#8209;owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation.&lt;/font&gt;
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&lt;div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"&gt;&lt;font style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: inherit;"&gt;(u) Recent accounting pronouncements&lt;/font&gt;&lt;/div&gt;
&lt;div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;In May 2011, the FASB issued Accounting Standard Update No. 2011-04, which amends Accounting Standards Codification Topic 820,&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: inherit;"&gt;Fair Value Measurements and Disclosures&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;, to result in common fair value measurements and disclosures between U.S. GAAP and International Financial Reporting Standards. The amendments explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The amendments change the wording used to describe fair value measurement requirements and disclosures, but often do not result in a change in the application of current guidance. Certain amendments clarify the intent about the application of existing fair value measurement requirements, while certain other amendments change a principle or requirement for fair value measurement or disclosure. QVC adopted this guidance as of January 1, 2012, and adoption did not have an impact on its consolidated financial position, results of operations or cash flows.&lt;/font&gt;&lt;/div&gt;
&lt;div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;In June 2011, the FASB issued ASU No. 2011-05, which amends ASC Topic 220,&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: inherit;"&gt;Comprehensive Income&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;, to increase the prominence of items reported in other comprehensive income by eliminating the option of presenting components of comprehensive income as part of the statement of changes in shareholders' equity. The updated guidance requires that all nonowner changes in shareholders' equity be presented either as a single continuous statement of comprehensive income or in two separate but consecutive statements. The guidance is limited to the form and content of the financial statements and disclosures. QVC adopted this guidance, as amended, as of January 1, 2012 and adoption did not have an impact on its consolidated financial position, results of operations or cash flows.&lt;/font&gt;&lt;/div&gt;
&lt;div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;In December 2011, the FASB issued ASU No. 2011-11, which amends ASC Subtopic 210-20,&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: inherit;"&gt;Offsetting&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;. The guidance requires enhanced disclosures with improved information about financial instruments and derivative instruments that are either (i) offset in accordance with current guidance or (ii) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with current guidance. This guidance is effective for interim and annual periods beginning after January 1, 2013. The guidance is limited to the form and content of disclosures and QVC does not anticipate that the adoption of this guidance will have an impact on its consolidated financial position, results of operations or cash flows.&lt;/font&gt;&lt;/div&gt;
&lt;div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;In July 2012, the FASB issued ASU No. 2012-02, which amends the guidance on testing indefinite-lived intangible assets, other than goodwill, for impairment. The amendment permits an entity to perform a qualitative impairment assessment before proceeding to the two-step impairment test. The guidance is effective for QVC beginning in fiscal 2013; however, early adoption is permitted. QVC adopted this guidance during the third quarter of 2012. There was no impact to QVC's financial statements upon adoption of this standard.&lt;/font&gt;&lt;/div&gt;
&lt;div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;In February 2013, the FASB issued ASU No. 2013-02, which amends ASC Topic 220,&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: inherit;"&gt;Comprehensive Income&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;and requires that companies present information about reclassification adjustments from accumulated other comprehensive income in their interim and annual financial statements. The standard requires that companies present either in a single note, or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies will instead cross reference to the related footnote for additional information. The guidance will be effective for QVC beginning in fiscal 2013 and QVC has not early adopted this standard. ASU 2013-02 is limited to the form and content of disclosures and QVC does not anticipate that the adoption of this guidance will have an impact on its consolidated financial position, results of operations or cash flows.&lt;/font&gt;&lt;/div&gt;
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&lt;div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: justify;"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"&gt;Certain prior period amounts have been reclassified to conform with current period presentation.&lt;/font&gt;&lt;/div&gt;
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