2.4.0.822137100 - Disclosure - Income Taxestruefalsefalse1false falsefalseD2013Q1http://www.sec.gov/CIK0001254699duration2013-01-01T00:00:002013-03-31T00:00:002false falsefalseD2012http://www.sec.gov/CIK0001254699duration2012-01-01T00:00:002012-12-31T00:00:001true 1us-gaap_IncomeTaxDisclosureAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Income Tax Disclosure [Abstract]2false 2us-gaap_IncomeTaxDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Income Taxes</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company calculates its interim income tax provision by applying its best estimate of the annual expected effective tax rate to its ordinary year-to-date income or loss. The tax or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent and temporary differences as a result of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the tax environment changes. To the extent that the estimated annual effective tax rate changes during a quarter, the effect of the change on the prior quarters is included in the tax expense for the current quarter.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For the three month period ended </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;text-decoration:none;">March 31, 2013</font><font style="font-family:inherit;font-size:10pt;">, the Company recorded a tax provision of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$62 million</font><font style="font-family:inherit;font-size:10pt;">, which represented an effective tax rate of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">36.9%</font><font style="font-family:inherit;font-size:10pt;">. For the three month period ended </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;text-decoration:none;">March 31, 2012</font><font style="font-family:inherit;font-size:10pt;">, the Company recorded a tax provision of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$82 million</font><font style="font-family:inherit;font-size:10pt;">, which represented an effective tax rate of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">37.1%</font><font style="font-family:inherit;font-size:10pt;">. These rates differ from the U.S. federal income tax rate of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">35.0%</font><font style="font-family:inherit;font-size:10pt;"> due primarily to state tax expense.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's tax years 2013 and 2012 are currently under examination by the Internal Revenue Service (&#8220;IRS&#8221;). The Company files Federal tax returns on a consolidated basis with its parent company, Liberty. The Company, or one of its subsidiaries, files income tax returns in various states and foreign jurisdictions. As of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">March&#160;31, 2013</font><font style="font-family:inherit;font-size:10pt;">, the Company, or one of its subsidiaries, was under examination in California, Minnesota, New Jersey, New York, New York City, North Carolina and Pennsylvania, as well as in Japan, Germany and the U.K.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The amounts of the tax-related balances due to Liberty at </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;text-decoration:none;">March 31, 2013</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;text-decoration:none;">December 31, 2012</font><font style="font-family:inherit;font-size:10pt;"> were </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$56 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$70 million</font><font style="font-family:inherit;font-size:10pt;">, respectively, and were included in accrued liabilities in the accompanying condensed consolidated balance sheets.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company entered into a Tax Liability Allocation and Indemnification Agreement (the &#8220;Agreement&#8221;), dated April&#160;26, 2004, with Liberty Interactive&#160;LLC. The Agreement establishes the methodology for the calculation and payment of income taxes in connection with the consolidation of the Company with Liberty for income tax purposes. Generally, the Agreement provides that the Company will pay Liberty&#160;Interactive LLC an amount equal to the tax liability, if any, that it would have if it were to file as a consolidated group separate and apart from Liberty, with exceptions for the treatment and timing of certain items, including but not limited to deferred intercompany transactions, credits, and net operating and capital losses. To the extent that the separate company tax expense is different from the payment terms of the Agreement, the difference is recorded as either a dividend or capital contribution.</font></div></div>falsefalsefalse2falsefalsefalse00<div style="font-size:10.0pt;font-family:Times New Roman;"> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(13) Income Taxes</font></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Income tax expense (benefit) consisted of the following:</font> <div style="PADDING-LEFT: 0px; TEXT-INDENT: 0px; PADDING-TOP: 10px;"> <table style="text-align:left;FONT-SIZE: 10pt; WIDTH: 100%; FONT-FAMILY: Times New Roman; BORDER-COLLAPSE: collapse; TEXT-ALIGN: left;" cellspacing="0" cellpadding="0"> <tr style="padding:0;"> <td colspan="8"></td></tr> <tr style="padding:0;"> <td width="64%"></td> <td width="1%"></td> <td width="10%"></td> <td width="1%"></td> <td width="11%"></td> <td width="1%"></td> <td width="11%"></td> <td width="1%"></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 2px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td> <td style="BORDER-TOP: #000000 2px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="6"> <div style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1px; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">Years ended December 31,</font></div></td> <td style="BORDER-TOP: #000000 2px solid; VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: left;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">(in millions)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2012</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2011</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2010</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 1px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Current:</font></div></td> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 1px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="3"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 1px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 1px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 20px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">U.S. federal</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">$</font></div></td> <td style="PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">369</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">313</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">282</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 20px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">State and local</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">23</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">28</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(8</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 20px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Foreign jurisdiction</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">136</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">117</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">112</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 36px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Total</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">528</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">458</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">386</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Deferred:</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="3"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 20px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">U.S. federal</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(121</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(97</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(87</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 20px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">State and local</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(7</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(15</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(4</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 20px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Foreign jurisdiction</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(6</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(4</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(13</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 36px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Total</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(134</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(116</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(104</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 36px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Total income tax expense</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">$</font></div></td> <td style="PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">394</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">342</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">282</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr></table></div></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Pre-tax income was as follows:</font> <div style="PADDING-LEFT: 0px; TEXT-INDENT: 0px; PADDING-TOP: 10px;"> <table style="text-align:left;FONT-SIZE: 10pt; WIDTH: 100%; FONT-FAMILY: Times New Roman; BORDER-COLLAPSE: collapse; TEXT-ALIGN: left;" cellspacing="0" cellpadding="0"> <tr style="padding:0;"> <td colspan="8"></td></tr> <tr style="padding:0;"> <td width="64%"></td> <td width="1%"></td> <td width="10%"></td> <td width="1%"></td> <td width="11%"></td> <td width="1%"></td> <td width="11%"></td> <td width="1%"></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 2px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td> <td style="BORDER-TOP: #000000 2px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="6"> <div style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1px; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">Years ended December 31,</font></div></td> <td style="BORDER-TOP: #000000 2px solid; VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: left;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">(in millions)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2012</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2011</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2010</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">QVC-U.S.</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">$</font></div></td> <td style="PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">865</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">785</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">663</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">QVC-Japan</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">253</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">199</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">187</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">QVC-Germany</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">29</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">32</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">27</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">QVC-U.K.</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(17</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(2</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(6</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">QVC-Italy</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(49</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(60</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(38</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 20px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Consolidated QVC</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">$</font></div></td> <td style="PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">1,081</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">954</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">833</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr></table></div></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Total income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:</font> <div style="PADDING-LEFT: 0px; TEXT-INDENT: 0px; PADDING-TOP: 10px;"> <table style="text-align:left;FONT-SIZE: 10pt; WIDTH: 100%; FONT-FAMILY: Times New Roman; BORDER-COLLAPSE: collapse; TEXT-ALIGN: left;" cellspacing="0" cellpadding="0"> <tr style="padding:0;"> <td colspan="7"></td></tr> <tr style="padding:0;"> <td width="64%"></td> <td width="11%"></td> <td width="1%"></td> <td width="11%"></td> <td width="1%"></td> <td width="11%"></td> <td width="1%"></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 2px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td> <td style="BORDER-TOP: #000000 2px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="5"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">Years ended December 31,</font></div></td> <td style="BORDER-TOP: #000000 2px solid; VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2012</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2011</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2010</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 1px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Provision at statutory rate</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">35.0</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">35.0</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">35.0</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">State income taxes, net of federal benefit</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">1.0</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">0.9</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1.0</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)%</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Foreign taxes</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">1.3</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">1.3</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">1.2</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Change in valuation allowance</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#8212;</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#8212;</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(0.2</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)%</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Foreign earnings repatriation</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1.1</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1.1</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1.0</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)%</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Permanent differences</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">0.1</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#8212;</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(0.5</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)%</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Other, net</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">0.1</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(0.3</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">0.4</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 20px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Total income tax expense</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">36.4</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">35.8</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">33.9</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;%</font></div></td></tr></table></div></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:</font> <div style="PADDING-LEFT: 0px; TEXT-INDENT: 0px; PADDING-TOP: 10px;"> <table style="text-align:left;FONT-SIZE: 10pt; WIDTH: 100%; FONT-FAMILY: Times New Roman; BORDER-COLLAPSE: collapse; TEXT-ALIGN: left;" cellspacing="0" cellpadding="0"> <tr style="padding:0;"> <td colspan="6"></td></tr> <tr style="padding:0;"> <td width="76%"></td> <td width="1%"></td> <td width="10%"></td> <td width="1%"></td> <td width="11%"></td> <td width="1%"></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 2px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td> <td style="BORDER-TOP: #000000 2px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="4"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">December 31,</font></div></td> <td style="BORDER-TOP: #000000 2px solid; VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: left;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">(in millions)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2012</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: right;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">2011</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 1px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Deferred tax assets:</font></div></td> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 1px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="3"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 1px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="PADDING-LEFT: 36px; FONT-SIZE: 10pt; TEXT-INDENT: -12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">$</font></div></td> <td style="PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">29</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">31</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="PADDING-LEFT: 36px; FONT-SIZE: 10pt; TEXT-INDENT: -12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">39</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">39</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="PADDING-LEFT: 24px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Allowance for sales returns</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">33</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">31</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="PADDING-LEFT: 24px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Deferred compensation</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">27</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">33</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="PADDING-LEFT: 24px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Unrecognized federal and state tax benefits</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">31</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">32</font></div></td> <td style="VERTICAL-ALIGN: bottom;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="PADDING-LEFT: 24px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Accrued liabilities</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">29</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">27</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="PADDING-LEFT: 24px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Other</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">42</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">42</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="PADDING-LEFT: 36px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Subtotal</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">230</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">235</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="PADDING-LEFT: 24px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Valuation allowance</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="PADDING-LEFT: 36px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Total deferred tax assets</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">229</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">234</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Deferred tax liabilities:</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="3"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="2"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="PADDING-LEFT: 24px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Depreciation and amortization</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1,455</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1,579</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="PADDING-LEFT: 24px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Cumulative translation of foreign currencies</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(33</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(51</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="PADDING-LEFT: 36px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Total deferred tax liabilities</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1,488</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1,630</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="PADDING-LEFT: 36px; FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Net deferred tax liability</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">$</font></div></td> <td style="PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1,259</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1,396</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr></table></div></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">The valuation allowance for deferred tax assets was $1 million at</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: inherit; TEXT-DECORATION: none;">December 31, 2012 and 2011</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">. The current and prior year valuation allowance exists, in part, due to the uncertainty of whether or not the benefit of certain foreign tax credits will ultimately be utilized for income tax purposes.</font></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">The Company has recognized tax benefits from the exercise of employee stock options that reduced taxes payable and were credited to additional paid-in capital. The amount of the tax benefits were $29 million, $8 million and $7 million for the years ended</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: inherit; TEXT-DECORATION: none;">December 31, 2012, 2011 and 2010</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">, respectively.</font></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">The Company entered into a Tax Liability Allocation and Indemnification Agreement (the &#8220;Agreement&#8221;), dated April 26, 2004, with Liberty Interactive LLC (&#8220;Liberty LLC&#8221;). The Agreement establishes the methodology for the calculation and payment of income taxes in connection with the consolidation of the Company with Liberty for income tax purposes. Generally, the Agreement provides that the Company will pay Liberty LLC an amount equal to the tax liability, if any, that it would have if it were to file as a consolidated group separate and apart from Liberty, with exceptions for the treatment and timing of certain items, including but not limited to deferred intercompany transactions, credits, and net operating and capital losses. To the extent that the separate company tax expense is different from the payment terms of the Agreement, the difference is recorded as either a dividend or capital contribution. The differences recorded during the years ended</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: inherit; TEXT-DECORATION: none;">December 31, 2012, 2011 and 2010</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">were $47 million in dividends, $10 million in dividends and $40 million in net capital contributions, respectively, and related primarily to foreign tax credits recognized by QVC that are creditable under the Agreement when and if utilized in Liberty's consolidated tax return. The amounts of the tax-related balance due to Liberty at</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: inherit; TEXT-DECORATION: none;">December 31, 2012 and 2011</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">were $70 million and $21 million, respectively, and are included in accrued liabilities in the accompanying consolidated balance sheets.</font></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">The Company has provided for U.S. income taxes on the undistributed earnings of foreign subsidiaries. The Company expects the amount of foreign tax credits available on those undistributed earnings to offset the U.S. income tax liability and to result in an incremental benefit related to the increased utilization of foreign tax credits. The amount of the U.S. income tax benefit recorded in the years ended</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: inherit; TEXT-DECORATION: none;">December 31, 2012, 2011 and 2010</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">on those undistributed earnings was $12 million, $10 million and $8 million, respectively.</font></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">A reconciliation of the 2012 beginning and ending amount of the liability for unrecognized tax benefits is as follows:</font> <div style="PADDING-LEFT: 0px; TEXT-INDENT: 0px; PADDING-TOP: 10px;"> <table style="text-align:left;FONT-SIZE: 10pt; WIDTH: 100%; FONT-FAMILY: Times New Roman; BORDER-COLLAPSE: collapse; TEXT-ALIGN: left;" cellspacing="0" cellpadding="0"> <tr style="padding:0;"> <td colspan="4"></td></tr> <tr style="padding:0;"> <td width="88%"></td> <td width="1%"></td> <td width="10%"></td> <td width="1%"></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 2px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 8pt; TEXT-ALIGN: left;"><font style="FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: inherit;">(in millions)</font></div></td> <td style="PADDING-RIGHT: 2px; BORDER-TOP: #000000 2px solid; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;" colspan="3"> <div style="FONT-SIZE: 10pt; OVERFLOW: hidden;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">&#160;</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Balance at January 1, 2012</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">$</font></div></td> <td style="PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">99</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Decreases related to prior year tax positions</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(11</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Increases related to current year tax positions</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">10</font></div></td> <td style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Settlements</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(2</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Lapse of statute</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;" colspan="2"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">(1</font></div></td> <td style="PADDING-RIGHT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">)</font></div></td></tr> <tr style="padding:0;"> <td style="PADDING-RIGHT: 2px; PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Balance at December 31, 2012</font></div></td> <td style="PADDING-LEFT: 2px; PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">$</font></div></td> <td style="PADDING-BOTTOM: 2px; VERTICAL-ALIGN: bottom; PADDING-TOP: 2px; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: right;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">95</font></div></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid;"> <div style="FONT-SIZE: 10pt; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;"><br /></font></div></td></tr></table></div></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">Included in the balance of unrecognized tax benefits at December 31, 2012 are potential benefits of $62 million (net of $33 million federal tax benefit) that, if recognized, would affect the effective rate on income from continuing operations.</font></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other income (expense). The amount of reported interest expense (income) on unrecognized tax benefits during the years ended</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: inherit; TEXT-DECORATION: none;">December 31, 2012, 2011 and 2010</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">was $1 million, $(1) million and $(5) million, respectively. The Company had approximately $22 million and $21 million of interest expense accrued at</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: inherit; TEXT-DECORATION: none;">December 31, 2012 and 2011</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">, respectively. The Company reported no penalty expense in 2012 and penalty expense of $1 million on unrecognized tax benefits during the years ended December 31, 2011 and 2010, respectively.</font></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">The Company has tax positions for which the amount of related unrecognized tax benefits could change during 2013. These include federal transfer pricing and nonfederal tax issues. The amount of unrecognized tax benefits related to the transfer pricing issue could increase by less than $1 million in 2013 as a result of potential settlements and revisions to settlement estimates. The amount of unrecognized tax benefits related to nonfederal tax issues could have a net decrease of $6 million in 2013 as a result of potential settlements, lapsing of statute of limitations and revisions to settlement estimates.</font></div> <div style="FONT-SIZE: 10pt; PADDING-BOTTOM: 12px; TEXT-ALIGN: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: inherit;">The Company participates in a consolidated federal return filing with Liberty. As of December 31, 2011, the Company's tax years through 2008 are closed for federal income tax purposes, and the IRS has completed its examination of the Company's 2009, 2010, and 2011 tax years. The Company's 2012 tax year is being examined currently as part of the Liberty consolidated return under the IRS's Compliance Assurance Process (&#8220;CAP&#8221;) program. The Company is currently under examination in the states of California, Minnesota, New York, North Carolina, New Jersey, Pennsylvania, New York City, and in the U.K., Germany and Japan.</font></div> </div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. false0Income Tax DisclosurefalseIncome TaxesUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.qvc.com/role/IncomeTaxes22