10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-38654

QVC, Inc.

(Exact name of Registrant as specified in its charter)

State of Delaware 23-2414041

(State or other jurisdiction of (I.R.S. Employer Identification

incorporation or organization) Number)

1200 Wilson Drive

West Chester, Pennsylvania 19380

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (484) 701-1000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
6.375% Senior Secured Notes due 2067	QVCD	New York Stock Exchange
6.250% Senior Secured Notes due 2068	QVCC	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer ☒ Smaller reporting company  Emerging growth

☐ company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

None of the voting stock of the registrant is held by a non-affiliate of the registrant. There is no publicly traded market for any class of voting stock of the registrant. There is one holder of record of our equity, Qurate Retail Group, Inc., an indirect wholly-owned subsidiary of Qurate Retail, Inc.

QVC, Inc.

2021 QUARTERLY REPORT ON FORM 10-Q

Table of Contents

	Part I	Page
Item 1.	Financial Statements (unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Comprehensive Income	3
	Condensed Consolidated Statements of Cash Flows	4
	Condensed Consolidated Statement of Equity	5
	Notes to the Condensed Consolidated Financial Statements (unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	36
Item 4.	Controls and Procedures	37
	Part II
Item 6.	Exhibits	38
	Signatures	39

Item 1. Financial Statements

QVC, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

	June 30,		December 31,
(in millions, except share amounts)	2021		2020
Assets
Current assets:
Cash and cash equivalents	$	737	682
Restricted cash	8		8
Accounts receivable, less allowance for credit losses of $94 at June 30, 2021 and $124 at December 31, 2020	1,157		1,602
Inventories	1,205		1,119
Prepaid expenses and other current assets	344		293
Total current assets	3,451		3,704
Property and equipment, net of accumulated depreciation of $1,433 at June 30, 2021 and $1,544 at December 31, 2020	1,092		1,178
Operating lease right-of-use assets (note 6)	211		221
Television distribution rights, net (note 2)	187		63
Goodwill (note 3)	6,003		6,034
Other intangible assets, net (note 3)	3,429		3,454
Note receivable - related party (note 1)	1,825		1,825
Other noncurrent assets	75		79
Total assets	$	16,273	16,558
Liabilities and equity
Current liabilities:
Current portion of debt and finance lease obligations (note 5)	$	524	410
Accounts payable-trade	969		1,127
Accrued liabilities (note 4)	975		1,302
Total current liabilities	2,468		2,839
Long-term portion of debt and finance lease obligations (note 5)	4,543		4,549
Deferred income taxes (note 8)	715		711
Other long-term liabilities	313		324
Total liabilities	8,039		8,423
Commitments and contingencies (note 9)
Equity:
QVC, Inc. stockholder's equity:
Common stock, $0.01 par value, 1 authorized share	—		—
Additional paid-in capital	10,753		10,741
Accumulated deficit	(2,561)		(2,722)
Accumulated other comprehensive loss	(84)		(17)
Total QVC, Inc. stockholder's equity	8,108		8,002
Noncontrolling interest	126		133
Total equity	8,234		8,135
Total liabilities and equity	$	16,273	16,558

1

QVC, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Net revenue	$	2,780	2,723	5,490	5,150
Operating costs and expenses:
Cost of goods sold (exclusive of depreciation and amortization shown separately below)	1,755		1,735	3,513	3,319
Operating	196		187	382	364
Selling, general and administrative, including stock-based compensation	305		304	588	586
Depreciation	38		43	78	86
Amortization	64		73	126	144
	2,358		2,342	4,687	4,499
Operating income	422		381	803	651
Other (expense) income:
Equity in losses of investee	—		(1)	—	(2)
Losses on financial instruments	(4)		—	(3)	(4)
Interest expense, net	(65)		(64)	(128)	(129)
Foreign currency (loss) gain	(2)		1	(4)	2
Other income	2		—	8	—
	(69)		(64)	(127)	(133)
Income before income taxes	353		317	676	518
Income tax expense	(96)		(92)	(181)	(152)
Net income	257		225	495	366
Less net income attributable to the noncontrolling interest	(17)		(14)	(33)	(26)
Net income attributable to QVC, Inc. stockholder	$	240	211	462	340

2

QVC, Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Net income	$	257	225	495	366
Foreign currency translation adjustments, net of tax	9		18	(64)	(4)
Comprehensive income (loss) attributable to debt credit risk adjustments	1		—	(12)	—
Total comprehensive income	267		243	419	362
Comprehensive income attributable to noncontrolling interest	(16)		(15)	(24)	(28)
Comprehensive income attributable to QVC, Inc. stockholder	$	251	228	395	334

3

QVC, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

	Six months ended June 30,
(in millions)	2021		2020
Operating activities:
Net income	$	495	366
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in losses of investee	—		2
Deferred income taxes	(1)		—
Foreign currency loss (gain)	4		(2)
Depreciation	78		86
Amortization	126		144
Change in fair value of financial instruments and noncash interest	3		8
Stock-based compensation	20		16
Change in other long-term liabilities	3		3
Other income	(8)		—
Other non-cash charges, net	21		20
Change in operating assets and liabilities
Decrease in accounts receivable	432		525
(Increase) decrease in inventories	(93)		96
Decrease in prepaid expenses and other current assets	40		9
Decrease in accounts payable-trade	(154)		(124)
(Decrease) increase in accrued liabilities and other	(321)		30
Net cash provided by operating activities	645		1,179
Investing activities:
Capital expenditures	(94)		(92)
Expenditures for television distribution rights	(170)		(10)
Changes in other noncurrent assets	(2)		—
Proceeds from sale of fixed assets	40		—
Net cash used in investing activities	(226)		(102)
Financing activities:
Principal payments of debt and finance lease obligations	(149)		(1,226)
Principal borrowings of debt from senior secured credit facility	135		112
Proceeds from issuance of senior secured notes	—		575
Payment of debt origination fees	—		(8)
Dividends paid to Qurate Retail, Inc.	(301)		(262)
Dividends paid to noncontrolling interest	(31)		(30)
Withholding taxes on net share settlements of stock-based compensation	(17)		(1)
Derivative payments to counterparties	(12)		—
Derivative proceeds from counterparties	24		—
Other financing activities	2		—
Net cash used in financing activities	(349)		(840)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(15)		(3)
Net increase in cash, cash equivalents and restricted cash	55		234
Cash, cash equivalents and restricted cash, beginning of period	690		569
Cash, cash equivalents and restricted cash, end of period	$	745	803

4

QVC, Inc.

Condensed Consolidated Statements of Equity

(unaudited)

	Common stock			Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Noncontrolling interest	Total equity
(in millions, except share data)	Shares	Amount
Balance, December 31, 2019	1	$	—	9,208	(2,390)	(144)	130	6,804
Net income	—	—		—	340	—	26	366
Foreign currency translation adjustments, net of tax	—	—		—	—	(6)	2	(4)
Dividends paid to Qurate Retail, Inc. and noncontrolling interest	—	—		—	(262)	—	(30)	(292)
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc.	—	—		—	—	—	—	—
Withholding taxes on net share settlements of stock-based compensation	—	—		—	—	—	—	—
Stock-based compensation	—	—		16	—	—	—	16
Balance, June 30, 2020	1	$	—	9,224	(2,312)	(150)	128	6,890

	Common stock			Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Noncontrolling interest	Total equity
(in millions, except share data)	Shares	Amount
Balance, March 31, 2020	1	$	—	9,213	(2,381)	(167)	128	6,793
Net income	—	—		—	211	—	14	225
Foreign currency translation adjustments, net of tax	—	—		—	—	17	1	18
Dividends paid to Qurate Retail, Inc. and noncontrolling interest	—	—		—	(140)	—	(15)	(155)
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc.	—	—		—	(2)	—	—	(2)
Withholding taxes on net share settlements of stock-based compensation	—	—		1	—	—	—	1
Stock-based compensation	—	—		10	—	—	—	10
Balance, June 30, 2020	1	$	—	9,224	(2,312)	(150)	128	6,890

5

QVC, Inc.

Condensed Consolidated Statements of Equity

(unaudited)

	Common stock			Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Noncontrolling interest	Total equity
(in millions, except share data)	Shares	Amount
Balance, December 31, 2020	1	$	—	10,741	(2,722)	(17)	133	8,135
Net income	—	—		—	462	—	33	495
Foreign currency translation adjustments, net of tax	—	—		—	—	(55)	(9)	(64)
Dividends paid to Qurate Retail, Inc. and noncontrolling interest	—	—		—	(301)	—	(31)	(332)
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc.	—	—		9	—	—	—	9
Withholding taxes on net share settlements of stock-based compensation	—	—		(17)	—	—	—	(17)
Stock-based compensation	—	—		20	—	—	—	20
Debt credit risk adjustment	—	—		—	—	(12)	—	(12)
Balance, June 30, 2021	1	$	—	10,753	(2,561)	(84)	126	8,234

	Common stock			Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Noncontrolling interest	Total equity
(in millions, except share data)	Shares	Amount
Balance, March 31, 2021	1	$	—	10,740	(2,677)	(95)	125	8,093
Net income	—	—		—	240	—	17	257
Foreign currency translation adjustments, net of tax	—	—		—	—	10	(1)	9
Dividends paid to Qurate Retail, Inc. and noncontrolling interest	—	—		—	(124)	—	(15)	(139)
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc.	—	—		4	—	—	—	4
Withholding taxes on net share settlements of stock-based compensation	—			(2)	—	—	—	(2)
Stock-based compensation	—	—		11	—	—	—	11
Debt credit risk adjustment	—	—		—	—	1	—	1
Balance, June 30, 2021	1	$	—	10,753	(2,561)	(84)	126	8,234

6

QVC, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

(1) Basis of Presentation

QVC, Inc. and its consolidated subsidiaries (unless otherwise indicated or required by the context, the terms "we," "our," "us," the "Company" and "QVC" refer to QVC, Inc. and its consolidated subsidiaries) is a retailer of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised shopping programs, the Internet and mobile applications.

In the United States ("U.S."), QVC's televised shopping programs, including live and recorded content, are distributed across multiple channels nationally on a full-time basis, including QVC, QVC2, QVC3, HSN and HSN2. The Company's U.S. programming is also available on QVC.com and HSN.com, which we refer to as our "U.S. websites"; virtual multichannel video programming distributors (including Hulu + Live TV, AT&T TV, and YouTube TV); applications via streaming video; Facebook Live, Roku, Apple TV, Amazon Fire and Xfinity Flex; mobile applications; social pages and over-the-air broadcasters.

QVC's digital platforms enable consumers to purchase goods offered on our televised programming, along with a wide assortment of products that are available only on our U.S. websites. QVC.com, HSN.com and our other digital platforms (including our mobile applications, social pages and others) are natural extensions of our business model, allowing customers to engage in our shopping experience wherever they are, with live or on-demand content customized to the device they are using. In addition to offering video content, our U.S. websites allow shoppers to browse, research, compare and perform targeted searches for products, read customer reviews, control the order-entry process and conveniently access their account.

Internationally, QVC's televised shopping programs, including live and recorded content, are distributed to households outside of the U.S., primarily in Germany, Austria, Japan, the United Kingdom ("U.K."), the Republic of Ireland and Italy. In some of the countries where QVC operates, QVC's televised shopping programs are distributed across multiple QVC channels: QVC Style and QVC2 in Germany and QVC Beauty, QVC Extra and QVC Style in the U.K. Similar to the U.S., our international businesses also engage customers via websites, mobile applications, and social pages. QVC's international business employs product sourcing teams who select products tailored to the interests of each local market.

The Company's Japanese operations ("QVC-Japan") are conducted through a joint venture with Mitsui & Co., LTD ("Mitsui"). QVC-Japan is owned 60% by the Company and 40% by Mitsui. The Company and Mitsui share in all profits and losses based on their respective ownership interests. During the six months ended June 30, 2021 and 2020, QVC-Japan paid dividends to Mitsui of $31 million and $30 million, respectively.

The Company also has a joint venture with CNR Media Group, formerly known as China Broadcasting Corporation, a limited liability company owned by China National Radio (''CNR''). The Company owns a 49% interest in a CNR subsidiary, CNR Home Shopping Co., Ltd. (''CNRS''). CNRS operates a retail business in China through a shopping television channel with an associated website. This joint venture is accounted for as an equity method investment recorded as equity in income (losses) of investee in the condensed consolidated statements of operations. In June 2021, QVC entered into an agreement to sell its interest in CNRS. The transaction is expected to close in the third quarter of 2021.

The Company is an indirect wholly-owned subsidiary of Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB and QRTEP), which owns interests in a broad range of digital commerce businesses, including Qurate Retail's other wholly-owned subsidiary Zulily, LLC ("Zulily"), as well as other minority investments. QVC is part of the Qurate Retail Group, formerly QVC Group, a portfolio of brands including QVC, Zulily and Cornerstone Brands, Inc. ("CBI").

On December 31, 2018, QVC entered into the Fourth Amended and Restated Credit Agreement that provides for a $2.95 billion revolving credit facility as explained further in note 5. The Fourth Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by QVC or Zulily. Under the terms of the Fourth Amended and Restated Credit Agreement, QVC and Zulily are jointly and severally liable for all amounts borrowed on the $400 million tranche. In accordance with the accounting guidance for obligations resulting from joint and several liability arrangements, QVC will record a liability for amounts it has borrowed under the credit facility plus any additional amount it expects to repay on behalf of Zulily. As of June 30, 2021, there was $77 million borrowed by Zulily on the $400 million tranche of the Fourth Amended and Restated Credit Agreement, none of which the Company expects to repay on behalf of Zulily.

7

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

During each of the six months ended June 30, 2021 and 2020, QVC and Zulily engaged in multiple transactions relating to sales, sourcing of merchandise, marketing initiatives and business advisory services. QVC allocated expenses of $4 million to Zulily for each of the six months ended June 30, 2021 and 2020. Zulily allocated expenses of $5 million to QVC for each of the six months ended June 30, 2021 and 2020.

In September 2020, QVC and Zulily executed a Master Promissory Note ("Promissory Note") whereby Zulily may borrow up to $100 million at a variable interest rate equal to the LIBOR rate plus an applicable margin rate. The Promissory Note matures in September 2030. There were no borrowings on the Promissory Note as of June 30, 2021 and December 31, 2020.

During each of the six months ended June 30, 2021 and 2020, QVC and CBI engaged in multiple transactions relating to personnel and business advisory services. QVC allocated expenses of $11 million to CBI for each of the six months ended June 30, 2021 and 2020. CBI allocated expenses of $1 million to QVC for each of the six months ended June 30, 2021 and 2020.

In December 2019, a new coronavirus disease ("COVID-19'") pandemic was reported to have surfaced in Wuhan, China and has subsequently spread across the globe, including all of the countries in which QVC operates. As a result of the spread of COVID-19, certain local governmental agencies have imposed travel restrictions, local quarantines or stay at home restrictions to contain the spread, which has caused a significant disruption to most sectors of the economy.

Management is not presently aware of any events or circumstances arising from COVID-19 that would require the Company to update the estimates, judgments or revise the carrying value of our assets or liabilities. Management's estimates may change, however, as new events occur and additional information is obtained, and any such changes will be recognized in the consolidated financial statements. Actual results could differ from estimates, and any such differences may be material to our financial statements.

On December 30, 2020, the Company and Liberty Interactive LLC ("LIC") completed an internal realignment of the Company's global finance structure that resulted in a common control transaction with Qurate Retail. As part of the common control transaction, LIC issued a promissory note (“LIC Note”) to the Company with an initial face amount of $1.8 billion, a stated interest rate of 0.48% and a maturity of December 29, 2029. Interest on the LIC Note is to be paid annually beginning on December 29, 2021. QVC recorded $2 million and $4 million of related party interest income for the three and six months ended June 30, 2021, respectively, included in interest expense, net in the consolidated statement of operations.

The condensed consolidated financial statements include the accounts of QVC, Inc. and its majority-owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation.

The accompanying (a) condensed consolidated balance sheet as of December 31, 2020, which has been derived from audited financial statements, and (b) the interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in QVC's Annual Report on Form 10-K for the year ended December 31, 2020.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, internally-developed software, valuation of acquired intangible assets and goodwill and income taxes.

8

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

(2) Television Distribution Rights, Net

Television distribution rights consisted of the following:

(in millions)	June 30, 2021		December 31, 2020
Television distribution rights	$	823	814
Less accumulated amortization	(636)		(751)
Television distribution rights, net	$	187	63

The Company recorded amortization expense of $23 million and $35 million for the three months ended June 30, 2021 and 2020, respectively, related to television distribution rights. For the six months ended June 30, 2021 and 2020, amortization expense for television distribution rights was $48 million and $69 million, respectively.

As of June 30, 2021, related amortization expense for each of the next five years ended December 31 was as follows (in millions):

Remainder of 2021	$	59
2022	103
2023	22
2024	3
2025	—

(3) Goodwill and Other Intangible Assets, Net

The changes in the carrying amount of goodwill by operating segment for the six months ended June 30, 2021 were as follows:

(in millions)	QxH		QVC-International	Total
Balance as of December 31, 2020	$	5,112	922	6,034
Exchange rate fluctuations	—		(31)	(31)
Balance as of June 30, 2021	$	5,112	891	6,003

Other intangible assets consisted of the following:

	June 30, 2021				December 31, 2020
(in millions)	Gross cost		Accumulated amortization	Other intangible assets, net	Gross cost	Accumulated amortization	Other intangible assets, net
Purchased and internally developed software	$	983	(694)	289	952	(663)	289
Affiliate and customer relationships	2,839		(2,582)	257	2,845	(2,564)	281
Debt origination fees	10		(5)	5	10	(4)	6
Trademarks (indefinite life)	2,878		—	2,878	2,878	—	2,878
	$	6,710	(3,281)	3,429	6,685	(3,231)	3,454

The Company recorded amortization expense of $41 million and $38 million for the three months ended June 30, 2021 and 2020, respectively, related to other intangible assets. For the six months ended June 30, 2021 and 2020, amortization expense for other intangible assets was $78 million and $75 million, respectively.

9

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

As of June 30, 2021, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions):

Remainder of 2021	$	100
2022	161
2023	120
2024	76
2025	47

(4) Accrued Liabilities

Accrued liabilities consisted of the following:

(in millions)	June 30, 2021		December 31, 2020
Accounts payable non-trade	$	295	408
Allowance for sales returns	186		267
Accrued compensation and benefits	155		214
Other	339		413
	$	975	1,302

10

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

(5) Long-Term Debt and Finance Lease Obligations

Long-term debt and finance lease obligations consisted of the following:

(in millions)	June 30, 2021		December 31, 2020
3.5% Exchangeable Senior Debentures due 2031	$	507	393
4.375% Senior Secured Notes due 2023, net of original issue discount	750		750
4.85% Senior Secured Notes due 2024, net of original issue discount	600		600
4.45% Senior Secured Notes due 2025, net of original issue discount	599		599
4.75% Senior Secured Notes due 2027	575		575
4.375% Senior Secured Notes due 2028	500		500
5.45% Senior Secured Notes due 2034, net of original issue discount	399		399
5.95% Senior Secured Notes due 2043, net of original issue discount	300		300
6.375% Senior Secured Notes due 2067	225		225
6.25% Senior Secured Notes due 2068	500		500
Finance lease obligations (note 6)	158		168
Less debt issuance costs, net	(46)		(50)
Total debt and finance lease obligations	5,067		4,959
Less current portion	(524)		(410)
Long-term portion of debt and finance lease obligations	$	4,543	4,549

Exchangeable Senior Debentures

The Company has elected to account for its Motorola Solutions, Inc. 3.5% Senior Exchangeable Debentures Due 2031 (the “MSI Exchangeables”) using the fair value option. Accordingly, changes in the fair value of these instruments are recognized as losses on financial instruments in the statements of operations and in other comprehensive income as it relates to instrument specific credit risk on the consolidated statements of comprehensive income. The Company has classified for financial reporting purposes the MSI Exchangeables as a current liability as the MSI Exchangeables are exchangeable at the option of the holder at any time. Although we do not own underlying shares, the Company has entered into certain derivative transactions in order to hedge against upward price fluctuations on certain shares. Such derivative instruments are recognized in the other current assets line item in the condensed consolidated balance sheets, and are marked to fair value each reporting period. The changes in fair value are recognized in losses on financial instruments in the condensed statement of operations.

Senior Secured Notes

All of QVC's senior secured notes are secured by the capital stock of QVC and certain of its subsidiaries and have equal priority to the senior secured credit facility. The interest on QVC's senior secured notes is payable semi-annually with the exception of the 6.375% Senior Secured Notes due 2067 (the "2067 Notes") and the 6.25% Senior Secured Notes due 2068 (the "2068 Notes"), which is payable quarterly.

11

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

Senior Secured Credit Facility

On December 31, 2018, QVC entered into the Fourth Amended and Restated Credit Agreement with Zulily as borrowers (collectively, the “Borrowers”) which is a multi-currency facility that provides for a $2.95 billion revolving credit facility with a $450 million sub-limit for standby letters of credit and $1.5 billion of uncommitted incremental revolving loan commitments or incremental term loans. The Fourth Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by the Company or Zulily with a $50 million sub-limit for standby letters of credit. The remaining $2.55 billion and any incremental loans may be borrowed only by the Company. Borrowings that are alternate base rate loans will bear interest at a per annum rate equal to the base rate plus a margin that varies between 0.25% and 0.75% depending on the Borrowers’ combined ratio of Consolidated Total Debt to Consolidated EBITDA (the “Combined Consolidated Leverage Ratio”). Borrowings that are London Interbank Offered Rate ("LIBOR") loans will bear interest at a per annum rate equal to the applicable LIBOR rate plus a margin that varies between 1.25% and 1.75% depending on the Borrowers’ Combined Consolidated Leverage Ratio. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. No mandatory prepayments will be required other than when borrowings and letter of credit usage exceed availability; provided that, if Zulily ceases to be controlled by Qurate Retail, all of its loans must be repaid and its letters of credit cash collateralized. The facility matures on December 31, 2023. Payment of loans may be accelerated following certain customary events of default.

QVC had $2.85 billion available under the terms of the Fourth Amended and Restated Credit Agreement as of June 30, 2021, including the portion available under the $400 million tranche that Zulily may also borrow on.

The payment and performance of the Borrowers’ obligations under the Fourth Amended and Restated Credit Agreement are guaranteed by each of QVC’s Material Domestic Subsidiaries (as defined in the Fourth Amended and Restated Credit Agreement). Further, the borrowings under the Fourth Amended and Restated Credit Agreement are secured, pari passu with QVC’s existing notes, by a pledge of all of QVC’s equity interests. In addition, the payment and performance of the Borrowers’ obligations with respect to the $400 million tranche available to both QVC and Zulily are also guaranteed by Zulily and secured by a pledge of all of Zulily’s equity interests.

The Fourth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including certain restrictions on the Company and Zulily and each of their respective restricted subsidiaries (subject to certain exceptions) with respect to, among other things: incurring additional indebtedness; creating liens on property or assets; making certain loans or investments; selling or disposing of assets; paying certain dividends and other restricted payments; dissolving, consolidating or merging; entering into certain transactions with affiliates; entering into sale or leaseback transactions; restricting subsidiary distributions; and limiting the Company’s consolidated leverage ratio and the Borrowers’ Combined Consolidated Leverage Ratio.

Interest Rate Swap Arrangements

In July 2019, the Company entered into a three-year interest swap arrangement with a notional amount of $125 million. The swap arrangement did not qualify as a cash flow hedge under U.S. GAAP and the fair value of the swap instrument was in a net liability position of $2 million and $3 million as of June 30, 2021 and December 31, 2020, respectively, which was included in other long-term liabilities.

Changes in the fair value of the swaps are reflected in losses on financial instruments in the condensed consolidated statements of operations.

Other Debt Related Information

QVC was in compliance with all of its debt covenants as of June 30, 2021.

The weighted average interest rate applicable to all of the outstanding debt (excluding finance leases) prior to amortization of bond discounts and related debt issuance costs was 4.9% as of June 30, 2021.

12

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

(6) Leases

The Company has finance lease agreements with transponder and transmitter network suppliers for the right to transmit its signals in the U.S. and Germany. The Company is also party to a finance lease agreement for a warehouse.

QVC also leases data processing equipment, facilities, office space and land. These leases are classified as operating leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Our leases have remaining lease terms of less than 1 year to 13 years, some of which may include the option to extend or terminate the leases.

The components of lease cost for the three and six months ended June 30, 2021 and 2020, were as follows:

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Finance lease cost
Depreciation of leased assets	$	5	5	10	10
Interest on lease liabilities	2		2	4	4
Total finance lease cost	7		7	14	14
Operating lease cost	10		10	20	20
Total lease cost	$	17	17	34	34

The remaining weighted-average lease term and the weighted-average discount rate were as follows:

	June 30, 2021
Weighted-average remaining lease term (years):
Finance leases	8.2
Operating leases	10.8
Weighted-average discount rate:
Finance leases	5.2	%
Operating leases	5.9	%

13

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

Supplemental balance sheet information related to leases was as follows:

(in millions)	June 30, 2021		December 31, 2020
Operating Leases:
Operating lease right-of-use assets	$	211	221
Accrued liabilities	$	24	25
Other long-term liabilities	187		195
Total operating lease liabilities	$	211	220
Finance Leases:
Property and equipment	$	274	278
Accumulated depreciation	(147)		(141)
Property and equipment, net	$	127	137
Current portion of debt and finance lease obligations	$	17	18
Long-term portion of debt and finance lease obligations	141		150
Total finance lease liabilities	$	158	168

Supplemental cash flow information related to leases was as follows:

	Six months ended June 30,
(in millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	20	25
Operating cash flows from finance leases	4		4
Financing cash flows from finance leases	9		9
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	4	19

Future payments under noncancelable operating leases and finance leases with initial terms of one year or more as of June 30, 2021 consisted of the following:

(in millions)	Finance leases		Operating leases	Total leases
Remainder of 2021	$	12	19	31
2022	26		34	60
2023	25		28	53
2024	24		25	49
2025	21		21	42
Thereafter	89		168	257
Total lease payments	197		295	492
Less: imputed interest	(39)		(84)	(123)
Total lease liabilities	$	158	211	369

14

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

(7) Revenue

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

	Three months ended June 30, 2021				Six months ended June 30, 2021
(in millions)	QxH		QVC-International	Total	QxH	QVC-International	Total
Home	$	775	309	1,084	1,550	633	2,183
Beauty	294		193	487	580	357	937
Apparel	359		127	486	649	253	902
Accessories	272		71	343	510	137	647
Electronics	167		32	199	368	65	433
Jewelry	76		54	130	174	114	288
Other revenue	46		5	51	94	6	100
Total net revenue	$	1,989	791	2,780	3,925	1,565	5,490

	Three months ended June 30, 2020				Six months ended June 30, 2020
(in millions)	QxH		QVC-International	Total	QxH	QVC-International	Total
Home	$	803	286	1,089	1,484	543	2,027
Beauty	325		186	511	613	331	944
Apparel	302		100	402	601	201	802
Accessories	245		63	308	457	121	578
Electronics	217		31	248	391	53	444
Jewelry	82		47	129	180	96	276
Other revenue	36		—	36	76	3	79
Total net revenue	$	2,010	713	2,723	3,802	1,348	5,150

Consumer Product Revenue and Other Revenue

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

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

Revenue Recognition

Revenue is recognized when obligations with our customers are satisfied; generally this occurs at the time of shipment to our customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration we expect to receive in exchange for transferring goods, net of allowances for returns.

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

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

15

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

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

The Company generally extends payment terms with its customers of one year or less and does not consider the time value of money when recognizing revenue.

Significant Judgments

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

16

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

(8) Income Taxes

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.

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.

For the three months ended June 30, 2021 and 2020, the Company recorded a tax provision of $96 million and $92 million, respectively, which represented an effective tax rate of 27.2% and 29.0%, respectively. For the six months ended June 30, 2021 and 2020, the Company recorded a tax provision of $181 million and $152 million, respectively, which represented an effective tax rate of 26.8% and 29.3%, respectively. The 2021 rate differs from the U.S. federal income tax rate of 21% due primarily to state and foreign tax expenses. The 2021 effective tax rate has decreased from the prior year for both the three months and six months ended June 30, 2021 primarily due to decreases in state tax expense and a valuation allowance established in the prior year for excess U.S. foreign tax credits.

The Company participates in a consolidated federal return filing with Qurate Retail. As of June 30, 2021, the Company's tax years through 2016 are closed for federal income tax purposes, and the Internal Revenue Service ("IRS") has completed its examination of the Company's 2017, 2018 and 2019 tax years. The Company's 2020 and 2021 tax years are being examined currently as part of the Qurate Retail consolidated return under the IRS's Compliance Assurance Process program. The Company, or one of its subsidiaries, files income tax returns in various states and foreign jurisdictions. As of June 30, 2021, the Company was under examination in the state of Pennsylvania, New York City, the U.K. and Japan.

The Company is a party to a Tax Liability Allocation and Indemnification Agreement (the “Tax Agreement”) with Qurate Retail. The Tax Agreement establishes the methodology for the calculation and payment of income taxes in connection with the consolidation of the Company with Qurate Retail for income tax purposes. Generally, the Tax Agreement provides that the Company will pay Qurate Retail 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 Qurate Retail, 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 Tax Agreement, the difference is recorded as either a dividend or capital contribution.

The amounts of the tax-related payable due to Qurate Retail as of June 30, 2021 and December 31, 2020 were $1 million and $47 million, respectively, and were included in accrued liabilities in the accompanying condensed consolidated balance sheets.

(9) Commitments and Contingencies

The Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that the amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements.

17

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

Network and information systems, including the Internet and telecommunication systems, third party delivery services and other technologies are critical to QVC's business activities. Substantially all of QVC's customer orders, fulfillment and delivery services are dependent upon the use of network and information systems, including the use of third party telecommunication and delivery service providers. If information systems including the Internet or telecommunication services are disrupted, or if the third party delivery services experience a disruption in their transportation delivery services, the Company could face a significant disruption in fulfilling QVC's customer orders and shipment of QVC's products. The Company has active disaster recovery programs in place to help mitigate risks associated with these critical business activities.

(10) Financial Instruments and Fair Value Measurements

For assets and liabilities required to be reported or disclosed at fair value, U.S. GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability.

The Company's assets and liabilities measured or disclosed at fair value were as follows:

			Fair value measurements at June 30, 2021 using
(in millions)	Total		Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Significant unobservable inputs (Level 3)
Current assets:
Cash equivalents	$	255	255	—	—
Financial instrument asset (note 5)	107		—	107	—
Current liabilities:
Debt (note 5)	507		—	507	—
Long-term liabilities:
Debt (note 5)	4,707		769	3,938	—
Interest rate swap arrangements (note 5)	2		—	2	—

18

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

			Fair value measurements at December 31, 2020 using
(in millions)	Total		Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Significant unobservable inputs (Level 3)
Current assets:
Cash equivalents	$	240	240	—	—
Financial instrument asset (note 5)	23			23	—
Current liabilities:
Debt (note 5)	393		—	393	—
Long-term liabilities:
Debt (note 5)	4,705		743	3,962	—
Interest rate swap arrangements (note 5)	3		—	3	—

The 2067 Notes (ticker: QVCD) and the 2068 Notes (ticker: QVCC) are considered Level 1 fair value instruments as reported in the foregoing tables as they are traded on the New York Stock Exchange, which the Company considers to be an "active market," as defined by U.S. GAAP. The remainder of the Company's Level 2 financial liabilities are debt instruments and derivative instruments with quoted market prices that are not considered to be traded on "active markets." Accordingly, these financial instruments are reported in the foregoing tables as Level 2 fair value instruments.

19

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

(11) Information about QVC's Operating Segments

The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA (defined below), gross margin, average sales price per unit, number of units shipped and revenue. For segment reporting purposes, the Company defines Adjusted OIBDA, as net revenue less cost of goods sold, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its segments by identifying those items that are not directly a reflection of each segment's performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among the Company's businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization, stock-based compensation, and impairment loss (if any) that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP.

QVC's chief operating decision maker ("CODM") is QVC's Chief Executive Officer. QVC's CODM has ultimate responsibility for enterprise decisions. QVC's CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise. The segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. QVC's CODM relies on internal management reporting that analyzes enterprise results and segment results to the Adjusted OIBDA level.

For the three and six months ended June 30, 2021 and 2020, QVC identified QxH and QVC-International as its two reportable segments. Both operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the Internet and mobile applications in certain markets.

Performance measures

	Three months ended June 30,					Six months ended June 30,
	2021			2020		2021		2020
(in millions)	Net revenue		Adjusted OIBDA	Net revenue	Adjusted OIBDA	Net revenue	Adjusted OIBDA	Net revenue	Adjusted OIBDA
QxH	$	1,989	391	2,010	388	3,925	740	3,802	681
QVC-International	791		144	713	119	1,565	287	1,348	216
Consolidated QVC	$	2,780	535	2,723	507	5,490	1,027	5,150	897

Other information

	Three months ended June 30,					Six months ended June 30,
	2021			2020		2021		2020
(in millions)	Depreciation		Amortization	Depreciation	Amortization	Depreciation	Amortization	Depreciation	Amortization
QxH	$	24	61	29	70	50	120	58	138
QVC-International	14		3	14	3	28	6	28	6
Consolidated QVC	$	38	64	43	73	78	126	86	144

	June 30, 2021
(in millions)	Total assets		Capital expenditures	Property and equipment, net
QxH	$	13,958	81	722
QVC-International	2,315		13	370
Consolidated QVC	$	16,273	94	1,092

20

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

The following table provides a reconciliation of Adjusted OIBDA to operating income and income before income taxes:

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Adjusted OIBDA	$	535	507	1,027	897
Stock-based compensation	(11)		(10)	(20)	(16)
Depreciation and amortization	(102)		(116)	(204)	(230)
Operating income	422		381	803	651
Equity in losses of investee	—		(1)	—	(2)
Losses on financial instruments	(4)		—	(3)	(4)
Interest expense, net	(65)		(64)	(128)	(129)
Foreign currency (loss) gain	(2)		1	(4)	2
Other income	2		—	8	—
Income before income taxes	$	353	317	676	518

21

QVC, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

(unaudited)

(12) Other Comprehensive Income

The change in the component of accumulated other comprehensive loss, net of taxes ("AOCL"), is summarized as follows:

(in millions)	Comprehensive earnings attributable to debt credit risk adjustments		Foreign currency translation adjustments	AOCL
Balance at January 1, 2021	$	16	(33)	(17)
Other comprehensive income attributable to QVC, Inc. stockholder	(12)		(55)	(67)
Balance at June 30, 2021	4		(88)	(84)
Balance at January 1, 2020	$	—	(144)	(144)
Other comprehensive loss attributable to QVC, Inc. stockholder	—		(6)	(6)
Balance at June 30, 2020	—		(150)	(150)

The component of other comprehensive income is reflected in QVC's condensed consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive loss:

(in millions)	Before-tax amount		Tax benefit (expense)	Net-of-tax amount
Three months ended June 30, 2021
Foreign currency translation adjustments	$	10	(1)	9
Debt credit risk adjustment	1		—	1
Other comprehensive income	11		(1)	10
Three months ended June 30, 2020
Foreign currency translation adjustments	$	17	1	18
Other comprehensive income	17		1	18
Six months ended June 30, 2021
Foreign currency translation adjustments	$	(62)	(2)	(64)
Debt credit risk adjustment	(12)		—	(12)
Other comprehensive income	(74)		(2)	(76)
Six months ended June 30, 2020
Foreign currency translation adjustments	$	(6)	2	(4)
Other comprehensive loss	(6)		2	(4)

22

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Certain statements in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our business, product and marketing strategies; the novel coronavirus ("COVID-19"); capital expenditures; revenue growth; the recoverability of our goodwill and other long-lived assets; our projected sources and uses of cash; repayment of debt; and the anticipated impact of certain contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. The following include some but not all of the factors that could cause actual results or events to differ materially from those anticipated:

•the impact of the COVID-19 pandemic and local, state and federal governmental responses to COVID-19 on the economy, our customers, our vendors and our businesses generally;

•customer demand for our products and services and our ability to attract new customers and retain existing customers by anticipating customer demand and adapting to changes in demand;

•competitor responses to our products and services;

•increased digital TV penetration and the impact on channel positioning of our programs;

•the levels of online traffic on our websites and our ability to convert visitors into consumers or contributors;

•uncertainties inherent in the development and integration of new business lines and business strategies;

•our future financial performance, including availability, terms and deployment of capital;

•our ability to effectively manage our installment sales plans and revolving credit card programs;

•the cost and ability of shipping companies, manufacturers, suppliers, digital marketing channels and vendors to deliver products, equipment, software and services;

•the outcome of any pending or threatened litigation;

•availability of qualified personnel;

•the impact of the seasonality of our business;

•changes in, or failure or inability to comply with, government regulations, including, without limitation, regulations of the Federal Communications Commission, and adverse outcomes from regulatory proceedings;

•changes in the nature of key strategic relationships with partners, distributors, suppliers and vendors;

•domestic and international economic and business conditions and industry trends;

•changes in tariffs, trade policy and trade relations and the United Kingdom's ("U.K.") exit from the European Union (“Brexit”);

•changes in trade policy and trade relations with China;

•consumer spending levels, including the availability and amount of individual consumer debt;

•the effects of our debt obligations;

•advertising spending levels;

•system interruption and the lack of integration and redundancy in the system and infrastructures of our business;

•changes in distribution and viewing of television programming, including the expanded deployment of video on demand technologies and Internet Protocol television and their impact on home shopping programming;

23

•failure to protect the security of personal information, subjecting us to potentially costly government enforcement actions and/or private litigation and reputational damage;

•the regulatory and competitive environment of the industries in which we operate;

•threatened terrorist attacks, political unrest in international markets and ongoing military action around the world;

•fluctuations in foreign currency exchange rates;

•natural disasters, public health crises (including COVID-19), political crises, and other catastrophic events or other events outside of our control; and

•Qurate Retail, Inc.'s ("Qurate Retail") dependence on our cash flow for servicing its debt and for other purposes.

For additional risk factors, please see Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020 (the "2020 10-K"). These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this Quarterly Report on Form 10-Q, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based.

The following discussion and analysis provides information concerning our results of operations and financial condition. This discussion should be read in conjunction with our accompanying condensed consolidated financial statements and the notes thereto and the 2020 10-K.

Overview

QVC, Inc. and its consolidated subsidiaries (unless otherwise indicated or required by the context, the terms "we," "our," "QVC" or the "Company" refer to QVC, Inc. and its consolidated subsidiaries) is a retailer of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised shopping programs, the Internet and mobile applications.

In the United States ("U.S."), our televised shopping programs, including live and recorded content, are distributed across multiple channels nationally on a full-time basis, including QVC, QVC2, QVC3, HSN and HSN2. Our U.S. programming is also available on QVC.com and HSN.com, our "U.S. websites"; virtual multichannel video programming distributors (including Hulu + Live TV, AT&T TV, and YouTube TV); applications via streaming video; Facebook Live, Roku, Apple TV, Amazon Fire and Xfinity Flex; mobile applications; social pages and over-the-air broadcasters.

QVC's digital platforms enable consumers to purchase goods offered on our televised programming, along with a wide assortment of products that are available only on U.S. websites. QVC.com, HSN.com and our other digital platforms (including our mobile applications, social pages and others) are natural extensions of our business model, allowing customers to engage in our shopping experience wherever they are, with live or on-demand content customized to the device they are using. In addition to offering video content, our U.S. websites allow shoppers to browse, research, compare and perform targeted searches for products, read customer reviews, control the order-entry process and conveniently access their account.

Internationally, QVC's televised shopping programs, including live and recorded content, are distributed to households outside of the U.S., primarily in Germany, Austria, Japan, the U.K., the Republic of Ireland and Italy. In some of the countries where QVC operates, QVC's televised shopping programs are distributed across multiple QVC channels: QVC Style and QVC2 in Germany and QVC Beauty, QVC Extra and QVC Style in the U.K. Similar to the U.S., our international businesses also engage customers via websites, mobile applications, and social pages. Our international business employs product sourcing teams who select products tailored to the interests of each local market.

The Company's Japanese operations ("QVC-Japan") are conducted through a joint venture with Mitsui & Co., LTD ("Mitsui"). QVC-Japan is owned 60% by the Company and 40% by Mitsui. The Company and Mitsui share in all profits and losses based on their respective ownership interests. During the six months ended June 30, 2021 and 2020, QVC-Japan paid dividends to Mitsui of $31 million and $30 million, respectively.

24

The Company is an indirect wholly-owned subsidiary of Qurate Retail (Nasdaq: QRTEA, QRTEB and QRTEP), which owns interests in a broad range of digital commerce businesses, including Qurate Retail's other wholly-owned subsidiary Zulily, LLC ("Zulily"), as well as other minority investments. QVC is part of the Qurate Retail Group, formerly QVC Group, a portfolio of brands including QVC, Zulily and Cornerstone Brands, Inc. ("CBI").

QVC has two reportable segments: QxH and QVC-International. These segments reflect the way the Company evaluates its business performance and manages its operations.

On December 31, 2018, QVC entered into the Fourth Amended and Restated Credit Agreement that provides for a $2.95 billion revolving credit facility as explained further in note 5. The Fourth Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by QVC or Zulily. Under the terms of the Fourth Amended and Restated Credit Agreement, QVC and Zulily are jointly and severally liable for all amounts borrowed on the $400 million tranche. In accordance with the accounting guidance for obligations resulting from joint and several liability arrangements, QVC will record a liability for amounts it has borrowed under the credit facility plus any additional amount it expects to repay on behalf of Zulily. As of June 30, 2021, there was $77 million borrowed by Zulily on the $400 million tranche of the Fourth Amended and Restated Credit Agreement, none of which the Company expects to repay on behalf of Zulily.

During each of the six months ended June 30, 2021 and 2020, QVC and Zulily engaged in multiple transactions relating to sales, sourcing of merchandise, marketing initiatives and business advisory services. QVC allocated expenses of $4 million to Zulily for each of the six months ended June 30, 2021 and 2020. Zulily allocated expenses of $5 million to QVC for each of the six months ended June 30, 2021 and 2020.

In September 2020, QVC and Zulily executed a Master Promissory Note ("Promissory Note") whereby Zulily may borrow up to $100 million at a variable interest rate equal to the LIBOR rate plus an applicable margin rate. The Promissory Note matures in September 2030. There were no borrowings on the Promissory Note as of June 30, 2021 and December 31, 2020.

During each of the six months ended June 30, 2021 and 2020, QVC and CBI engaged in multiple transactions relating to personnel and business advisory services. QVC allocated expenses of $11 million to CBI for each of the six months ended June 30, 2021 and 2020. CBI allocated expenses of $1 million to QVC for each of the six months ended June 30, 2021 and 2020.

On July 12, 2021, the compensation committee of the board of directors of Qurate Retail approved Qurate Retail’s entry into an employment agreement with David Rawlinson II, effective July 12, 2021. Effective August 1, 2021, Mr. Rawlinson will serve as President and Chief Executive Officer-Elect of Qurate Retail, with Mr. George continuing as Chief Executive Officer, and effective October 1, 2021, Mr. Rawlinson will serve as President and Chief Executive Officer of Qurate Retail, with Mr. George assuming the role of Senior Advisor. Mr. George will resign from the board of directors effective January 1, 2022, at which time Mr. Rawlinson is expected to join Qurate Retail's board of directors. With respect to his roles at Qurate Retail and QVC, Mr. George will step down as President effective August 1, 2021 and as Chief Executive Officer effective October 1, 2021.

Strategies and challenges of business units

The goal of QVC is to extend its leadership in video commerce, e-commerce, mobile commerce and social commerce by continuing to create the world’s most engaging shopping experiences, combining the best of retail, media, and social, highly differentiated from traditional brick-and-mortar stores or transactional e-commerce. QVC provides customers with curated collections of unique products, made personal and relevant by the power of storytelling. We curate experiences, conversations and communities for millions of highly discerning shoppers, and we also curate large audiences, across our many platforms, for our thousands of brand partners.

QVC intends to employ several strategies to achieve these objectives. Among these strategies are to (i) Curate special products at compelling values; (ii) Extend video reach and relevance; (iii) Reimagine daily digital discovery; (iv) Expand and engage our passionate community; and (v) Deliver joyful customer service. In addition, we are exploring opportunities to evolve the International operating model to pursue growth opportunities in a more leveraged way across markets.

QVC's future net revenue growth will primarily depend on sales growth from e-commerce, mobile platforms, and applications via streaming video, additions of new customers from households already receiving QVC's televised programming and

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increased spending from existing customers. QVC's future net revenue may also be affected by (i) the willingness of cable television and direct-to-home satellite system operators to continue carrying QVC's programming service; (ii) QVC's ability to maintain favorable channel positioning, which may become more difficult due to governmental action or from distributors converting analog customers to digital; (iii) changes in television viewing habits because of video-on-demand technologies and Internet video services; (iv) QVC's ability to source new and compelling products; and (v) general economic conditions.

The Brexit process and negotiations have created political and economic uncertainty, particularly in the U.K. and the E.U., and this uncertainty may last for years. On June 23, 2016, the U.K. held a referendum in which voters approved, on an advisory basis, an exit from the E.U. The U.K. formally left the E.U. on January 31, 2020. This has resulted in a transition period that ran until December 31, 2020. On January 1, 2021, the U.K. left the E.U. Customs Union and Single Market, as well as all E.U. policies and international agreements. On December 24, 2020, the European Commission reached a trade agreement with the U.K. on the terms of its future cooperation with the E.U. (the “Trade Agreement”). The Trade Agreement offers U.K. and E.U. companies preferential access to each other’s markets, ensuring imported goods that satisfy applicable point of origin rules (that is, that U.K. or E.U. goods are wholly produced or significantly worked in the U.K. or E.U., as applicable) will be free of tariffs and quotas; however, economic relations between the U.K. and the E.U. will now be on more restrictive terms than existed previously. For example, packages sent to and from the U.K., will need to satisfy new customs requirements and obtain applicable transit documents which may result in delays exporting items to customers outside of the U.K. and delays importing products into the U.K. that are shipped to us by our vendors. The Trade Agreement did not have a material impact to our business; however, we cannot predict the impact that any future agreements on economic relations between the U.K. and the E.U. will have on our businesses and our customers, and it is possible that new terms may adversely affect our operations and financial results.

Early decisions by the Biden Administration confirm continuity of a bipartisan consensus in the U.S. government favoring increased confrontation of China in trade practices and economic matters, national security and human rights. The imposition of any new U.S. tariffs on Chinese imports or the taking of other actions against China in the future, and any responses by China, could impair our ability to meet customer demand and could result in lost sales or an increase in our cost of merchandise, which would have a material adverse impact on our business and results of operations.

In December 2019, the COVID-19 pandemic was reported to have surfaced in Wuhan, China and has subsequently spread across the globe, including all of the countries in which QVC operates. As a result of the spread of the virus, certain local governmental agencies have imposed travel restrictions and imposed local quarantines or stay at home restrictions to contain the spread, which has caused a significant disruption to most sectors of the economy. In response to these stay at home restrictions, QVC has mandated that non-essential employees work from home and has reduced the number of employees who are allowed on its production set and has implemented increased cleaning protocols, social distancing measures and temperature screenings for those employees who enter into certain facilities. In some cases, the move to a work from home arrangement for our non-essential employees will be permanent, which has resulted in the reduction of office space. We have also mandated that all essential employees who do not feel comfortable coming to work will not be required to do so. As a result of these resource constraints, QVC included fewer hours of live programming on some of its secondary channels and has experienced some delays in shipping at certain fulfillment centers. In certain markets, QVC temporarily increased the wages and salaries for those employees deemed essential who do not have the ability to work from home, including production and fulfillment center employees. The inability to control the spread of COVID-19, or the expansion or extension of these stay at home restrictions could negatively impact our results in the future.

The stay at home restrictions imposed in response to COVID-19 required many traditional brick and mortar retailers to temporarily close their stores, but allowed distance retailers, including QVC, to continue operating. As a result, beginning at the end of the first quarter of 2020 and continuing through the first quarter of 2021, we observed an increase in new customers and an increase in demand for certain categories, such as home. Beginning in the second quarter of 2021, we observed a decline in new customers and a decline in demand for our home product category, while also seeing an increase in demand for our apparel product category.

As a result, for the three and six months ended June 30, 2020, management had increased the amounts of certain estimated reserves including, but not limited to, uncollectible receivables in anticipation of higher defaults by customers billed through our installment payment option, inventory obsolescence due to decreased demand for certain categories, such as apparel, and

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sales returns due to our extended return policy. There were no remaining estimated reserves as of December 31, 2020 and June 30, 2021 as a direct result of COVID-19.

In addition, there are several potential adverse impacts of COVID-19 that could cause a material negative impact to the Company’s financial results, including its capital and liquidity. These include governmental restrictions on QVC’s ability to continue to operate under stay at home restrictions and produce content; reduced demand for products we sell; decreases in the disposable income of existing and potential new customers; the impacts of any recession and other uncertainties with respect to the continuity of government stimulus programs implemented in response to COVID-19; increased currency volatility resulting in adverse currency rate fluctuations; higher unemployment; labor shortages; and an adverse impact to our supply chain and shipping disruptions for both the products we import and purchase domestically and the products we sell, including essential products experiencing higher demand, due to factory closures, labor shortages and other resource constraints. While the impact is currently uncertain, the inability to control the spread of COVID-19 could cause any one of these adverse impacts, or combination of adverse impacts, to have a material impact on our financial results.

During the second quarter of 2021, the Company began to see increased product shortages as a result of high market demand in some product categories such as home and electronics, which impacted our ability to offer certain goods to our customer. In addition, the Company began to see increased inflationary pressures during the period. If these pressures persist, it may result in certain increased costs outpacing our pricing power in the near term.

Results of Operations

QVC's operating results were as follows:

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Net revenue	$	2,780	2,723	5,490	5,150
Operating costs and expenses:
Cost of goods sold (exclusive of depreciation and amortization shown separately below)	1,755		1,735	3,513	3,319
Operating	196		187	382	364
Selling, general and administrative, excluding stock-based compensation	294		294	568	570
Adjusted OIBDA (defined below)	535		507	1,027	897
Stock-based compensation	11		10	20	16
Depreciation	38		43	78	86
Amortization	64		73	126	144
Operating income	422		381	803	651
Other (expense) income:
Equity in losses of investee	—		(1)	—	(2)
Losses on financial instruments	(4)		—	(3)	(4)
Interest expense, net	(65)		(64)	(128)	(129)
Foreign currency (loss) gain	(2)		1	(4)	2
Other income	2		—	8	—
	(69)		(64)	(127)	(133)
Income before income taxes	353		317	676	518
Income tax expense	(96)		(92)	(181)	(152)
Net income	257		225	495	366
Less net income attributable to the noncontrolling interest	(17)		(14)	(33)	(26)
Net income attributable to QVC, Inc. stockholder	$	240	211	462	340

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Net revenue

Net revenue by segment was as follows:

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
QxH	$	1,989	2,010	3,925	3,802
QVC-International	791		713	1,565	1,348
Consolidated QVC	$	2,780	2,723	5,490	5,150

QVC's consolidated net revenue increased 2.1% and 6.6% for the three and six months ended June 30, 2021, respectively, as compared to the corresponding periods in the prior year. The three month increase in net revenue is primarily due to an 3.2% increase in units shipped, a $13 million decrease in estimated product returns primarily driven by QxH, a $5 million increase in shipping and handling revenue and $42 million in favorable foreign exchange rates, which was partially offset by a 1.9% decline in average selling price per unit ("ASP"), primarily driven by QxH. The six month increase in net revenue is primarily due to an 5.5% increase in units shipped, a $40 million decrease in estimated product returns primarily driven by QxH, a $14 million increase in shipping and handling revenue and $89 million in favorable foreign exchange rates, which was partially offset by a 0.4% decline in ASP, primarily driven by QxH.

During the three and six months ended June 30, 2021 and 2020, the changes in revenue and expenses were affected by changes in the exchange rates for the U.K. Pound Sterling, the Euro and the Japanese Yen. In the event the U.S. Dollar strengthens against these foreign currencies in the future, QVC's revenue and operating cash flow will be negatively affected.

In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for all countries where the functional currency is not the U.S. Dollar. We calculate the effect of changes in currency exchange rates as the difference between current period activity translated using the prior period's currency exchange rates. Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations. When we refer to constant currency operating results, this means operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to understand better QVC’s underlying performance without the effects of currency exchange rate fluctuations.

The percentage change in net revenue for each of QVC's segments in U.S. Dollars and in constant currency was as follows:

	Three months ended June 30, 2021						Six months ended June 30, 2021
	U.S. Dollars		Foreign Currency Exchange Impact		Constant Currency		U.S. Dollars		Foreign Currency Exchange Impact		Constant Currency
QxH	(1.0)	%	—	%	(1.0)	%	3.2	%	—	%	3.2	%
QVC-International	10.9	%	5.9	%	5.0	%	16.1	%	6.7	%	9.4	%

QxH net revenue decline for the three months ended June 30, 2021 was primarily due to a 6.1% decline in ASP which was partially offset by a 4.5% increase in units shipped, a $9 million decrease in estimated product returns and a $5 million increase in shipping and handling revenue. For the three months ended June 30, 2021, QxH experienced shipped sales declines in electronics, beauty, home and jewelry with growth in all other categories. For the six months ended June 30, 2021, QxH net revenue increased due to a 6.1% increase in units shipped, a $39 million decrease in estimated product returns and an $11 million increase in shipping and handling revenue, partially offset by a 4.4% decline in ASP. For the six months ended June 30, 2021, QxH experienced shipped sales growth in home, apparel and accessories with declines in all other categories. The decrease in estimated product returns for the three months ended June 30, 2021 was primarily due to a decrease in sales volume. The decrease in estimated product returns for the six months ended June 30, 2021 was primarily driven by a shift in product mix to the lower return rate category of home, partially offset by an increase in sales volume.

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QVC-International net revenue growth in constant currency for the three months ended June 30, 2021 was primarily due to a 3.2% increase in ASP, driven by ASP increases across all markets except Germany and Italy, and a slight increase in units shipped, driven by increases in units shipped in Japan and Germany. For the three months ended June 30, 2021, QVC-International experienced shipped sales growth in constant currency across all product categories. QVC-International net revenue growth in constant currency for the six months ended June 30, 2021 was primarily due to a 3.5% increase in ASP, driven by ASP increases across all markets, and a 4.1% increase in units shipped, driven by increases in units shipped across all markets except for the U.K. For the six months ended June 30, 2021, QVC-International experienced shipped sales growth in constant currency across all product categories.

Cost of goods sold (excluding depreciation and amortization)

QVC's cost of goods sold as a percentage of net revenue was 63.1% and 64.0% for the three and six months ended June 30, 2021, respectively, compared to 63.7% and 64.4% for the three and six months ended June 30, 2020, respectively. The decrease in cost of goods sold as a percentage of revenue for the three and six months ended June 30, 2021 is primarily due to favorable estimated product returns at QxH and Germany, strategic promotional and pricing initiatives, which decreased product costs as a percentage of net revenue in Germany and Japan, a shift in product mix to higher margin category of apparel and decreased obsolescence as a result of less aged inventory at QxH. These decreases were partially offset by increased freight charges and warehouse expenses at QxH.

Operating expenses

QVC's operating expenses are principally comprised of commissions, order processing and customer service expenses, credit card processing fees and telecommunications expenses. Operating expenses increased $9 million and $18 million for the three and six months ended June 30, 2021, respectively, as compared to the three and six months ended June 30, 2020. The three month increase is primarily due to a $4 million increase in customer service expenses primarily at QxH, a $3 million increase in commissions, primarily at QxH and to a lesser extent, Japan, and a $3 million increase due to unfavorable exchange rates. The six month increase is primarily due to an $8 million increase in customer service expenses primarily at QxH, a $4 million increase in commissions, primarily at QxH and to a lesser extent, Japan, and a $6 million increase due to unfavorable exchange rates.

Selling, general and administrative expenses (excluding stock-based compensation)

QVC's selling, general, and administrative expenses (excluding transaction related costs as defined below and stock-based compensation) include personnel, information technology, provision for doubtful accounts, production costs, and marketing and advertising expenses. Such expenses were flat for the three months ended June 30, 2021 and decreased $2 million for the six months ended June 30, 2021, as compared to the three and six months ended June 30, 2020. As a percentage of net revenue, such expenses were 10.6% and 10.3% for the three and six months ended June 30, 2021, respectively, and were 10.8% and 11.1% for the three and six months ended June 30, 2020, respectively.

For the three months ended June 30, 2021, there was a $20 million decrease in credit losses, primarily at QxH, and a $7 million decrease in personnel costs, primarily at QxH. These decreases were offset by a $20 million increase in online marketing primarily at QxH and a $7 million increase due to unfavorable exchange rates. For the six months ended June 30, 2021, the decrease was primarily due to a $45 million decrease in credit losses, primarily at QxH and a $4 million decrease in personnel costs, primarily at QxH. These decreases were offset by a $38 million increase in online marketing primarily at QxH and an $11 million increase due to unfavorable exchange rates. The decrease to estimated credit losses for the three and six months ended June 30, 2021 was due to a decrease in the number of installment counts offered to and taken by customers, an increase to our reserve as a result of COVID-19 for three and six months ended June 30, 2020, favorable adjustments based on actual collections and enhanced risk screening. The decrease related to personnel costs for the three and six months ended June 30, 2021 was primarily due to a reduction of severance and a work from home allowance as a result of COVID-19, which were both recorded in the second quarter of 2020.

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Stock-based compensation

Stock-based compensation includes compensation related to options and restricted stock units granted to certain officers and employees. QVC recorded $11 million and $20 million of stock-based compensation expense for the three and six months ended June 30, 2021, respectively, and recorded $10 million and $16 million of stock-based compensation expense for the three and six months ended June 30, 2020, respectively. The increase in stock compensation expense for the six months ended June 30, 2021 is primarily related to certain officers not reaching performance targets for restricted stock units for the six months ended June 30, 2020.

Depreciation and amortization

Depreciation and amortization consisted of the following:

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Affiliate agreements	$	—	—	—	1
Customer relationships	11		13	23	25
Other technology	4		3	8	7
Acquisition related amortization	15		16	31	33
Property and equipment	38		43	78	86
Software amortization	26		22	47	43
Channel placement amortization and related expenses	23		35	48	68
Total depreciation and amortization	$	102	116	204	230

The decrease in channel placement amortization and related expenses was due to certain channel placement agreements becoming fully amortized.

Equity in losses of investee

The Company has a joint venture with CNR Media Group, formerly known as China Broadcasting Corporation, a limited liability company owned by China National Radio (''CNR''). The Company owns a 49% interest in a CNR subsidiary, CNR Home Shopping Co., Ltd. (''CNRS''). CNRS operates a retail business in China through a shopping television channel with an associated website. This joint venture is accounted for as an equity method investment. In June 2021, QVC agreed to sell its interest in CNRS. The transaction is expected to close in the third quarter of 2021.

Interest expense, net

For the three and six months ended June 30, 2021, consolidated interest expense, net increased $1 million and decreased $1 million, respectively, as compared to the corresponding periods in the prior year.

Foreign currency (loss) gain

Certain loans between QVC and its subsidiaries are deemed to be short-term in nature, and accordingly, the translation of these loans is recorded in the condensed consolidated statements of operations. For the three and six months ended June 30, 2021, the change in foreign currency loss was also due to variances in interest and operating payables balances between QVC and its international subsidiaries denominated in the currency of the subsidiary and the effects of currency exchange rate changes on those balances.

Income taxes

Our effective tax rate was 27.2% and 26.8% for the three and six months ended June 30, 2021, respectively, compared to an effective tax rate of 29.0% and 29.3% for the three and six months ended June 30, 2020, respectively. The 2021 rate differs from the U.S. federal income tax rate of 21% due primarily to state and foreign tax expenses. The 2021 effective tax rate has decreased from the prior year for both the three months and six months ended June 30, 2021 primarily due to decreases in state tax expense and a valuation allowance established in the prior year for excess U.S. foreign tax credits.

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Adjusted Operating Income before Depreciation and Amortization (Adjusted OIBDA)

To provide investors with additional information regarding our financial statements, we disclose Adjusted OIBDA (defined below), which is a non-GAAP measure. QVC defines Adjusted OIBDA as operating income plus depreciation and amortization and stock-based compensation. QVC's chief operating decision maker and management team use this measure of performance in conjunction with other measures to evaluate the businesses and make decisions about allocating resources among the businesses. QVC believes that this is an important indicator of the operational strength and performance of the segments by identifying those items that are not directly a reflection of each segment's performance or indicative of ongoing business trends. In addition, this measure allows QVC to view operating results, perform analytical comparisons and perform benchmarking among its businesses and identify strategies to improve performance. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S generally accepted accounting principles ("U.S. GAAP").

The primary material limitations associated with the use of Adjusted OIBDA as compared to U.S. GAAP results are (i) it may not be comparable to similarly titled measures used by other companies in the industry, and (ii) it excludes financial information that some may consider important in evaluating QVC's performance. QVC compensates for these limitations by providing disclosure of the difference between Adjusted OIBDA and U.S. GAAP results, including providing a reconciliation of Adjusted OIBDA to U.S. GAAP results, to enable investors to perform their own analysis of QVC's operating results. The following table provides a reconciliation of operating income to Adjusted OIBDA.

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Operating income	$	422	381	803	651
Depreciation and amortization	102		116	204	230
Stock-based compensation	11		10	20	16
Adjusted OIBDA	$	535	507	1,027	897

QVC Adjusted OIBDA increased by $28 million for the three months ended June 30, 2021 compared to the three months ended June 30, 2020. The increase is comprised of a $25 million increase in QVC-International and a $3 million increase in QxH.

QVC Adjusted OIBDA increased by $130 million for the six months ended June 30, 2021 compared to the six months ended June 30, 2020. The increase is comprised of a $71 million increase in QVC-International and a $59 million increase in QxH.

Seasonality

QVC's business is seasonal due to a higher volume of sales in the fourth calendar quarter related to year-end holiday shopping. In recent years, QVC has earned, on average, between 21% and 24% of its revenue in each of the first three quarters of the year and 32% of its revenue in the fourth quarter of the year.

Financial Position, Liquidity and Capital Resources

General

Historically, QVC's primary sources of cash have been cash provided by operating activities and borrowings. In general, QVC uses this cash to fund its operations, make capital purchases, make payments to Qurate Retail, make interest payments and minimize QVC's outstanding senior secured credit facility balance.

As of June 30, 2021, substantially all of QVC's cash and cash equivalents were invested in AAA rated money market funds and time deposits with banks rated equal to or above A.

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Exchangeable Senior Debentures

The Company has elected to account for its Motorola Solutions, Inc. 3.5% Senior Exchangeable Debentures Due 2031 (the “MSI Exchangeables”) using the fair value option. Accordingly, changes in the fair value of these instruments are recognized as losses on financial instruments in the accompanying statements of operations and in other comprehensive income as it relates to instrument specific credit risk on the accompanying consolidated statements of comprehensive income. The Company has classified for financial reporting purposes the MSI Exchangeables as a current liability as the MSI Exchangeables are exchangeable at the option of the holder at any time. Although we do not own underlying shares, the Company has entered into certain derivative transactions in order to hedge against upward price fluctuations on certain shares. Such derivative instruments are recognized in the other current assets line item in the condensed consolidated balance sheets, and are marked to fair value each reporting period. The changes in fair value are recognized in losses on financial instruments in the condensed statement of operations.

Senior Secured Notes

All of QVC's senior secured notes are secured by the capital stock of QVC and certain of its subsidiaries and have equal priority to the senior secured credit facility. With the exception of the 6.375% Senior Secured Notes due 2067 and the 6.25% Senior Secured Notes due 2068, for which interest is payable quarterly, the interest on QVC's senior secured notes is payable semi-annually.

Senior Secured Credit Facility

On December 31, 2018, QVC entered into the Fourth Amended and Restated Credit Agreement with Zulily as borrowers (collectively, the “Borrowers”) which is a multi-currency facility that provides for a $2.95 billion revolving credit facility with a $450 million sub-limit for standby letters of credit and $1.5 billion of uncommitted incremental revolving loan commitments or incremental term loans. The Fourth Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by the Company or Zulily with a $50 million sub-limit for standby letters of credit. The remaining $2.55 billion and any incremental loans may be borrowed only by the Company. Borrowings that are alternate base rate loans will bear interest at a per annum rate equal to the base rate plus a margin that varies between 0.25% and 0.75% depending on the Borrowers’ combined ratio of Consolidated Total Debt to Consolidated EBITDA for the most recent four fiscal quarter period (the “Combined Consolidated Leverage Ratio”). Borrowings that are London Interbank Offered Rate ("LIBOR") loans will bear interest at a per annum rate equal to the applicable LIBOR rate plus a margin that varies between 1.25% and 1.75% depending on the Borrowers’ Combined Consolidated Leverage Ratio. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. No mandatory prepayments will be required other than when borrowings and letter of credit usage exceed availability; provided that, if Zulily ceases to be controlled by Qurate Retail, all of its loans must be repaid and its letters of credit cash collateralized. The facility matures on December 31, 2023. Payment of loans may be accelerated following certain customary events of default.

QVC had $2.85 billion available under the terms of the Fourth Amended and Restated Credit Agreement as of June 30, 2021, including the portion available under the $400 million tranche that Zulily may also borrow on.

The payment and performance of the Borrowers’ obligations under the Fourth Amended and Restated Credit Agreement are guaranteed by each of QVC’s Material Domestic Subsidiaries (as defined in the Fourth Amended and Restated Credit Agreement). Further, the borrowings under the Fourth Amended and Restated Credit Agreement are secured, pari passu with QVC’s existing notes, by a pledge of all of QVC’s equity interests. In addition, the payment and performance of the Borrowers’ obligations with respect to the $400 million tranche available to both QVC and Zulily are also guaranteed by Zulily and secured by a pledge of all of Zulily’s equity interests.

The Fourth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including certain restrictions on the Company and Zulily and each of their respective restricted subsidiaries (subject to certain exceptions) with respect to, among other things: incurring additional indebtedness; creating liens on property or assets; making certain loans or investments; selling or disposing of assets; paying certain dividends and other restricted payments; dissolving, consolidating or merging; entering into certain transactions with affiliates; entering into sale or leaseback transactions; restricting subsidiary distributions; and limiting the Company’s consolidated leverage ratio and the Borrowers’ Combined Consolidated Leverage Ratio.

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Parent Issuer and Subsidiary Guarantor Summarized Financial Information

The following information contains the summarized financial information for the combined parent (QVC, Inc.) and subsidiary guarantors (Affiliate Relations Holdings, Inc.; Affiliate Investment, Inc.; AMI 2, Inc.; ER Marks, Inc.; QVC Global Corporate Holdings, LLC; QVC GCH Company, LLC; QVC Rocky Mount, Inc.; QVC San Antonio, LLC; QVC Global Holdings I, Inc.; HSN, Inc; HSNi, LLC; HSN Holding LLC; AST Sub, Inc.; Home Shopping Network En Espanol, L.P.; Home Shopping Network En Espanol, L.L.C; Ingenious Designs LLC; NLG Merger Corp.; Ventana Television, Inc.; and Ventana Television Holdings, Inc.) pursuant to Rules 3-10, 13-01 and 13-02 of Regulation S-X.

This consolidated summarized financial information has been prepared from the Company's financial information on the same basis of accounting as the Company's consolidated financial statements. Transactions between the parent and subsidiary guarantors presented on a combined basis have been eliminated. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, such as management fees, royalty revenue and expense, interest income and expense and gains on intercompany asset transfers. Goodwill and other intangible assets have been allocated to the subsidiaries based on management’s estimates. Certain costs have been partially allocated to all of the subsidiaries of the Company.

The subsidiary guarantors are 100% owned by the Company. All guarantees are full and unconditional and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its U.S. subsidiaries, including the guarantors, by dividend or loan.

Summarized financial information for the year-to-date interim period and the most recent annual period was as follows:

	Combined Parent-QVC, Inc. and Subsidiary Guarantors
	June 30, 2021
Current assets	$	2,461
Intercompany receivable from non-guarantor subsidiaries	(2,879)
Note receivable - related party	1,825
Noncurrent assets	9,197
Current liabilities	1,828
Noncurrent liabilities	5,281

	Combined Parent-QVC, Inc. and Subsidiary Guarantors
	December 31, 2020
Current assets	$	2,394
Intercompany receivable from non-guarantor subsidiaries	(2,501)
Note receivable - related party	1,825
Noncurrent assets	11,118
Current liabilities	2,152
Noncurrent liabilities	5,286

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	Combined Parent-QVC, Inc. and Subsidiary Guarantors
	Six months ended June 30, 2021
Net revenue	$	4,401
Net revenue less cost of goods sold	1,978
Income before taxes	416
Net income	495
Net income attributable to QVC, Inc. Stockholder	462

	Combined Parent-QVC, Inc. and Subsidiary Guarantors
	Year ended December 31, 2020
Net revenue	$	9,631
Net revenue less cost of goods sold	4,066
Income before taxes	945
Net income	910
Net income attributable to QVC, Inc. Stockholder	852

Other Debt Related Information

QVC was in compliance with all of its debt covenants as of June 30, 2021.

There are no restrictions under the debt agreements on QVC's ability to pay dividends or make other restricted payments if QVC is not in default on its senior secured notes or the Fourth Amended and Restated Credit Agreement, and QVC's consolidated leverage ratio, and a Combined Consolidated Leverage Ratio for both QVC and Zulily, would be no greater than 3.5 to 1.0. As a result, Qurate Retail will, in many instances, be permitted to rely on QVC's cash flow for servicing Qurate Retail's debt and for other purposes, including repurchases of Qurate Retail's common stock, paying dividends to Qurate Retail's shareholders, including quarterly cash dividends to holders of Qurate Retail's Series A Cumulative Redeemable Preferred Stock (Nasdaq: QRTEP), or to fund acquisitions or other operational requirements of Qurate Retail and its subsidiaries. These events may increase accumulated deficit or require QVC to borrow under the Fourth Amended and Restated Credit Agreement, increasing QVC's leverage and decreasing liquidity. QVC has made significant distributions to Qurate Retail in the past.

Interest Rate Swap Arrangements

In July 2019, the Company entered into a three-year interest swap arrangement with a notional amount of $125 million. The swap arrangement did not qualify as a cash flow hedge under U.S. GAAP and the fair value of the swap instrument was in a net liability position of $2 million and $3 million as of June 30, 2021 and December 31, 2020, respectively, which was included in other long-term liabilities.

Additional Cash Flow Information

During the six months ended June 30, 2021, QVC's primary uses of cash were $301 million of dividends to Qurate Retail, $264 million of capital and television distribution rights expenditures, $149 million of principal payments of the senior secured credit facility and finance lease obligations and $31 million in dividend payments from QVC-Japan to Mitsui. These uses of cash were funded primarily with $645 million of cash provided by operating activities, $135 million of principal borrowings from the senior secured credit facility and $40 million in proceeds from sale of fixed assets. As of June 30, 2021, QVC's cash, cash equivalents and restricted cash balance was $745 million.

34

During the six months ended June 30, 2020, QVC's primary uses of cash were $1,226 million of principal payments on debt and finance lease obligations, $262 million of dividends to Qurate Retail, $102 million of capital and television distribution rights expenditures and $30 million in dividend payments from QVC-Japan to Mitsui. These uses of cash were funded primarily with $1,179 million of cash provided by operating activities, $575 million of proceeds from issuance of senior secured notes and $112 million of principal borrowings from the senior secured credit facility. As of June 30, 2020, QVC's cash, cash equivalents balance and restricted cash was $803 million.

The change in cash provided by operating activities for the six months ended June 30, 2021 compared to the previous year was primarily due to changes in working capital. Working capital at any specific point in time is subject to many variables, including seasonality, inventory management, the timing of cash receipts and payments, vendor payment terms and fluctuations in foreign exchange rates.

As of June 30, 2021, $311 million of the $745 million in cash, cash equivalents and restricted cash was held by foreign subsidiaries. Cash in foreign subsidiaries is available for domestic purposes with no significant tax consequences upon repatriation to the U.S. QVC accrues taxes on the unremitted earnings of its international subsidiaries. Approximately 67% of this foreign cash balance was that of QVC-Japan. QVC owns 60% of QVC-Japan and shares all profits and losses with the 40% minority interest holder, Mitsui. We believe that we currently have appropriate legal structures in place to repatriate foreign cash as tax efficiently as possible and meet the business needs of QVC.

Other

Capital expenditures in 2021 are expected to be between $220 and $250 million, including $94 million already expended for the six months ended June 30, 2021.

Refer to the chart under the "Off-balance Sheet Arrangements and Aggregate Contractual Obligations" section below for additional information concerning the amount and timing of expected future payments under QVC's contractual obligations as of June 30, 2021.

QVC has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible QVC may incur losses upon the conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that amounts, if any, that may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements.

Off-balance Sheet Arrangements and Aggregate Contractual Obligations

Information concerning the amount and timing of required payments, both accrued and off-balance sheet, under our contractual obligations as of June 30, 2021 is summarized below:

	Payments due by period
(in millions)	Remainder of 2021		2022	2023	2024	2025	Thereafter	Total
Long-term debt (1)	$	4	8	758	609	609	2,676	4,664
Interest payments (2)	120		238	222	182	154	2,587	3,503
Finance lease obligations (including imputed interest)	12		26	25	24	21	89	197
Operating lease obligations	$	19	34	28	25	21	168	295

(1) Amounts exclude Finance lease obligations and the issue discounts on the 4.375%, 4.45%, 4.85%, 5.45% and 5.95% Senior Secured Notes.

(2) Amounts (i) are based on the terms of our senior secured notes and exchangeable senior debentures, (ii) assumes that our existing debt is repaid at maturity and (iii) excludes finance lease obligations.

35

Item 3. Quantitative and Qualitative Disclosures about Market Risk

QVC is exposed to market risk in the normal course of business due to ongoing investing and financial activities and the conduct of operations by subsidiaries in different foreign countries. Market risk refers to the risk of loss arising from adverse changes in stock prices, interest rates and foreign currency exchange rates. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. QVC has established procedures and internal processes governing the management of market risks and the use of financial instruments to manage exposure to such risks.

Interest rate risk

QVC is exposed to changes in interest rates primarily as a result of borrowing activities. Over the long-term, QVC manages the exposure to interest rates by maintaining what QVC believes is an appropriate mix of fixed and variable rate debt.

The table below summarizes the Company’s debt obligations, related interest rates and fair value of debt at June 30, 2021:

(in millions, except percentages)	Remainder of 2021			2022		2023		2024		2025		Thereafter		Total		Fair Value
Fixed rate debt (1) (2)	$	4		8		758		609		609		2,676		4,664		4,445
Weighted average interest rate on fixed rate debt	3.5		%	3.5	%	4.4	%	4.8	%	4.4	%	5.3	%	4.9	%	N/A
Variable rate debt	$	—		—		—		—		—		—		—		—
Average interest rate on variable rate debt	—		%	—	%	—	%	—	%	—	%	—	%	—	%	N/A

(1) Amounts exclude finance lease obligations and the issue discounts on the 4.375%, 4.45%, 4.85%, 5.45% and 5.95% Senior Secured Notes.

(2) Amounts exclude impact related to interest rate swaps, which we have discussed further below.

N/A - Not applicable.

In July 2019, the Company entered into a three-year interest swap arrangement with a notional amount of $125 million. The new swap arrangement did not qualify as a cash flow hedge under U.S. GAAP and the fair value of the swap instrument was in a net liability position of approximately $2 million as of June 30, 2021, which was included in other long-term liabilities.

Changes in the fair value of the swaps are reflected in losses on financial instruments in the condensed consolidated

statements of operations.

Foreign currency exchange rate risk

QVC is exposed to foreign exchange rate fluctuations related to the monetary assets and liabilities and the financial results of its foreign subsidiaries. Assets and liabilities of foreign subsidiaries for which the functional currency is the local currency are translated into U.S. Dollars at period-end exchange rates, and the statements of operations are translated at the average exchange rate for the period. Exchange rate fluctuations on translating foreign currency financial statements into U.S. Dollars that result in unrealized gains or losses are referred to as translation adjustments. Cumulative translation adjustments are recorded in other comprehensive income as a separate component of stockholder's equity. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in income as unrealized (based on period-end transactions) or realized upon settlement of the transactions. Cash flows from operations in foreign countries are translated at the average rate for the period. Accordingly, QVC may experience economic loss and a negative impact on earnings and equity with respect to its holdings solely as a result of foreign currency exchange rate fluctuations. QVC's reported Adjusted OIBDA for the three and six months ended June 30, 2021 would have been impacted by approximately $1 million and $3 million, respectively, for every 1% change in foreign currency exchange rates relative to the U.S. Dollar.

The Fourth Amended and Restated Credit Agreement provides QVC with the ability to borrow in multiple currencies. This allows QVC to somewhat mitigate foreign currency exchange rate risks. As of June 30, 2021, no borrowings in foreign currencies were outstanding.

36

Item 4. Controls and Procedures

Disclosure Controls and Procedures

In accordance with Rules 13a-15 and 15d-15 under the Securities Exchange Act of 1934, as amended, the Company carried out an evaluation, under the supervision and with the participation of management, including its chief executive officer and its principal accounting and financial officer (the “Executives”), of the effectiveness of its disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the Executives concluded that the Company's disclosure controls and procedures were effective as of June 30, 2021 to provide reasonable assurance that information required to be disclosed in its reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Changes in Internal Control Over Financial Reporting

In May 2021, we completed the implementation of the initial phase of our new Enterprise Resource Planning (“ERP”) system, which has enabled standardization, modernization and best practice in our financial processes across our global markets and brands. As a result of the implementation of phase one of a new ERP system, we revised and updated certain process-level and information technology general controls.

Except as described above, there has been no change in the Company’s internal control over financial reporting that occurred during the three months ended June 30, 2021 that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

37

PART II

Item 6. Exhibits

(a) Exhibits

Listed below are the exhibits which are filed as a part of this Report (according to the number assigned to them in Item 601 of Regulation S-K):

31.1	Rule 13a-14(a)/15d-14(a) Certification*
31.2	Rule 13a-14(a)/15d-14(a) Certification*
32.1	Section 1350 Certification**
101.INS	Inline XBRL Instance Document* - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document*
101.CAL	Inline XBRL Taxonomy Calculation Linkbase Document*
101.LAB	Inline XBRL Taxonomy Label Linkbase Document*
101.PRE	Inline XBRL Taxonomy Presentation Linkbase Document*
101.DEF	Inline XBRL Taxonomy Definition Document*
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*

*Filed herewith.

**Furnished herewith.

38

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

QVC, Inc.

Date: August 6, 2021	By:/s/ MICHAEL A. GEORGE
	Michael A. George
	Chief Executive Officer (Principal Executive Officer)
Date: August 6, 2021	By:/s/ JEFFREY A. DAVIS
	Jeffrey A. Davis
	Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

39

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Michael A. George, certify that:

1.I have reviewed this report on Form 10-Q of QVC, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 6, 2021

By:/s/ MICHAEL A. GEORGE

     Michael A. George

Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Jeffrey A. Davis, certify that:

1.I have reviewed this report on Form 10-Q of QVC, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 6, 2021

By:/s/ JEFFREY A. DAVIS

Jeffrey A. Davis

Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officers of QVC, Inc., a Delaware corporation (the "Company"), does hereby certify, to such officer's knowledge, that:

The Report on Form 10-Q for the quarter ended June 30, 2021 (the "Form 10-Q") of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 6, 2021	By:/s/ MICHAEL A. GEORGE
	Michael A. George
	Chief Executive Officer (Principal Executive Officer)
Date: August 6, 2021	By:/s/ JEFFREY A. DAVIS
	Jeffrey A. Davis
	Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of the Form 10-Q or as a separate disclosure document.

XML

Cover	6 Months Ended
	Jun. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-38654
Entity Registrant Name	QVC, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2414041
Entity Address, Address Line One	1200 Wilson Drive
Entity Address, City or Town	West Chester
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19380
City Area Code	(484)
Local Phone Number	701-1000
Debt and Equity Securities, FV-NI [Line Items]
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
6.375% Senior Secured Notes [Member]
Debt and Equity Securities, FV-NI [Line Items]
Title of 12(b) Security	6.375% Senior Secured Notes due 2067
Trading Symbol	QVCD
Security Exchange Name	NYSE
6.25% Senior Secured Notes [Member]
Debt and Equity Securities, FV-NI [Line Items]
Title of 12(b) Security	6.250% Senior Secured Notes due 2068
Trading Symbol	QVCC
Security Exchange Name	NYSE

XML

Document and Entity Information Document	6 Months Ended
	Jun. 30, 2021 shares
Document Information [Abstract]
Entity Registrant Name	QVC, Inc.
Entity Central Index Key	0001254699
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	1
Document Type	10-Q
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 737	$ 682
Restricted cash	8	8
Accounts Receivable, after Allowance for Credit Loss, Current	1,157	1,602
Inventories	1,205	1,119
Prepaid expenses and other current assets	344	293
Total current assets	3,451	3,704
Noncurrent assets:
Property and equipment, net of accumulated depreciation of $1,433 at June 30, 2021 and $1,544 at December 31, 2020	1,092	1,178
Operating Lease, Right-of-Use Asset	211	221
Television distribution rights, net (note 2)	187	63
Goodwill (note 3)	6,003	6,034
Other intangible assets, net (note 3)	3,429	3,454
Note receivable - related party (note 1)	1,825	1,825
Other noncurrent assets	75	79
Total assets	16,273	16,558
Current liabilities:
Current portion of debt and finance lease obligations (note 5)	524	410
Accounts payable-trade	969	1,127
Accrued liabilities (note 4)	975	1,302
Total current liabilities	2,468	2,839
Noncurrent liabilities:
Long-term portion of debt and finance lease obligations (note 5)	4,543	4,549
Deferred Income Tax Liabilities, Net	715	711
Other long-term liabilities	313	324
Total liabilities	8,039	8,423
QVC, Inc. stockholder's equity:
Common stock, $0.01 par value, 1 authorized share	0	0
Additional paid-in capital	10,753	10,741
Accumulated deficit	(2,561)	(2,722)
Accumulated other comprehensive loss	(84)	(17)
Total QVC, Inc. stockholder's equity	8,108	8,002
Noncontrolling interest	126	133
Total equity	8,234	8,135
Total liabilities and equity	16,273	16,558
Note receivable - related party (note 1)	$ 1,825	$ 1,825

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Allowance for doubtful accounts	$ 94	$ 124
Accumulated depreciation	$ 1,433	$ 1,544
Common stock par value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	1	1

XML

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues	$ 2,780	$ 2,723	$ 5,490	$ 5,150
Cost of goods sold (exclusive of depreciation and amortization shown separately below)	1,755	1,735	3,513	3,319
Operating costs and expenses:
Operating	196	187	382	364
Selling, general and administrative, including transaction related costs and stock-based compensation	305	304	588	586
Depreciation	38	43	78	86
Amortization	64	73	126	144
Operating expenses	2,358	2,342	4,687	4,499
Operating income	422	381	803	651
Other (expense) income:
Equity in losses of investee	0	(1)	0	(2)
Gain (Loss) on Derivative Instruments, Net, Pretax	(4)	0	(3)	(4)
Interest expense, net	(65)	(64)	(128)	(129)
Foreign currency (loss) gain	(2)	1	(4)	2
Nonoperating Income (Expense)	(69)	(64)	(127)	(133)
Income before income taxes	353	317	676	518
Income tax expense	(96)	(92)	(181)	(152)
Net income	257	225	495	366
Less net income attributable to the noncontrolling interest	(17)	(14)	(33)	(26)
Net income attributable to QVC, Inc. stockholder	240	211	462	340
Other Income	$ 2	$ 0	$ 8	$ 0

XML

Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net income	$ 257	$ 225	$ 495	$ 366
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	9	18	(64)	(4)
Other Comprehensive Income Loss Credit Risk On Fair Value Debt Instruments Gain (Loss) Net Of Tax	1	0	(12)	0
Total comprehensive income	267	243	419	362
Comprehensive income attributable to noncontrolling interest	(16)	(15)	(24)	(28)
Comprehensive income attributable to QVC, Inc. stockholder	$ 251	$ 228	$ 395	$ 334

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Net income	$ 495	$ 366
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in losses of investee	0	2
Deferred income taxes	(1)	0
Foreign currency (loss) gain	4	(2)
Depreciation	78	86
Amortization	126	144
Change in fair value of financial instruments and noncash interest	3	8
Stock-based compensation	20	16
Change in other long-term liabilities	3	3
Other Income	(8)	0
Other non-cash charges, net	21	20
Decrease in accounts receivable	432	525
(Increase) decrease in inventories	(93)	96
Decrease in prepaid expenses and other current assets	40	9
Decrease in accounts payable-trade	(154)	(124)
(Decrease) increase in accrued liabilities and other	(321)	30
Net cash provided by operating activities	645	1,179
Investing activities:
Capital expenditures	(94)	(92)
Expenditures for television distribution rights	(170)	(10)
Changes in other noncurrent assets	(2)	0
Proceeds from Sales of Assets, Investing Activities	40	0
Net cash used in investing activities	(226)	(102)
Financing activities:
Principal payments of debt and finance lease obligations	(149)	(1,226)
Principal borrowings of debt from senior secured credit facility	135	112
Proceeds from issuance of senior secured notes	0	575
Payment of debt origination fees	0	(8)
Dividends paid to noncontrolling interest	(31)	(30)
Withholding taxes on net share settlements of stock-based compensation	(17)	(1)
Derivative payments to counterparties	(12)	0
Derivative proceeds from counterparties	24	0
Other financing activities	2	0
Net cash used in financing activities	(349)	(840)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(15)	(3)
Net increase in cash, cash equivalents and restricted cash	55	234
Cash, cash equivalents and restricted cash, beginning of period	690	569
Cash, cash equivalents and restricted cash, end of period	745	803
Qurate
Financing activities:
Dividends paid to Qurate Retail, Inc.	$ 301	$ 262

XML

Consolidated Statement of Equity - USD ($) $ in Millions	Total	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Noncontrolling interest
Balance at Dec. 31, 2019	$ 6,804	$ 0	$ 9,208	$ (2,390)	$ (144)	$ 130
Balance beginning (in shares) at Dec. 31, 2019		1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	366			340		26
Foreign currency translation adjustments, net of tax	(4)				(6)	2
(Dividends Paid To) Contributions Received From Wholly Owned Parent and Other	(292)			(262)		(30)
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc.	0			0
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	0		0
Stock-based compensation	16		16
Other Comprehensive Income Loss Credit Risk On Fair Value Debt Instruments Gain (Loss) Net Of Tax	0
Balance at Jun. 30, 2020	6,890	$ 0	9,224	(2,312)	(150)	128
Balance ending (in shares) at Jun. 30, 2020		1
Balance at Mar. 31, 2020	6,793	$ 0	9,213	(2,381)	(167)	128
Balance beginning (in shares) at Mar. 31, 2020		1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	225			211		14
Foreign currency translation adjustments, net of tax	18				17	1
(Dividends Paid To) Contributions Received From Wholly Owned Parent and Other	(155)			(140)		(15)
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc.	(2)			(2)
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	(1)		(1)
Stock-based compensation	10		10
Other Comprehensive Income Loss Credit Risk On Fair Value Debt Instruments Gain (Loss) Net Of Tax	0
Balance at Jun. 30, 2020	6,890	$ 0	9,224	(2,312)	(150)	128
Balance ending (in shares) at Jun. 30, 2020		1
Balance at Dec. 31, 2020	8,135	$ 0	10,741	(2,722)	(17)	133
Balance beginning (in shares) at Dec. 31, 2020		1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	495			462		33
Foreign currency translation adjustments, net of tax	(64)				(55)	(9)
(Dividends Paid To) Contributions Received From Wholly Owned Parent and Other	(332)			(301)		(31)
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc.	9		9
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	17		17
Stock-based compensation	20		20
Other Comprehensive Income Loss Credit Risk On Fair Value Debt Instruments Gain (Loss) Net Of Tax	(12)				(12)
Balance at Jun. 30, 2021	8,234	$ 0	10,753	(2,561)	(84)	126
Balance ending (in shares) at Jun. 30, 2021		1
Balance at Mar. 31, 2021	8,093	$ 0	10,740	(2,677)	(95)	125
Balance beginning (in shares) at Mar. 31, 2021		1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	257			240		17
Foreign currency translation adjustments, net of tax	9				10	(1)
(Dividends Paid To) Contributions Received From Wholly Owned Parent and Other	(139)			(124)		(15)
Impact of tax liability allocation and indemnification agreement with Qurate Retail, Inc.	4		4
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	2		2
Stock-based compensation	11		11
Other Comprehensive Income Loss Credit Risk On Fair Value Debt Instruments Gain (Loss) Net Of Tax	1				1
Balance at Jun. 30, 2021	$ 8,234	$ 0	$ 10,753	$ (2,561)	$ (84)	$ 126
Balance ending (in shares) at Jun. 30, 2021		1

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Other Comprehensive Income (Component of Other Comprehensive Income) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation adjustments before tax	$ 10	$ 17	$ (62)	$ (6)
Tax expense from foreign currency translation gain (loss)	(1)	1	(2)	2
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	9	18	(64)	(4)
Comprehensive Earnings (Loss) Attributable to Debt Credit Risk Adjustments, Before Tax Amount	1		(12)
Other Comprehensive Income Loss Credit Risk On Fair Value Debt Instruments Gain (Loss) Net Of Tax	1	0	(12)	0
Other Comprehensive Income (Loss), Net of Tax	10		(76)
Other Comprehensive Income (Loss), before Tax	11	17	(74)	(6)
Other Comprehensive Income (Loss), Tax	$ (1)	$ 1	$ (2)	$ 2

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Basis of Presentation

6 Months Ended

Jun. 30, 2021

Basis of Presentation [Abstract]

Basis of Accounting

Basis of Presentation

QVC, Inc. and its consolidated subsidiaries (unless otherwise indicated or required by the context, the terms "we," "our," "us," the "Company" and "QVC" refer to QVC, Inc. and its consolidated subsidiaries) is a retailer of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised shopping programs, the Internet and mobile applications.

In the United States ("U.S."), QVC's televised shopping programs, including live and recorded content, are distributed across multiple channels nationally on a full-time basis, including QVC, QVC2, QVC3, HSN and HSN2. The Company's U.S. programming is also available on QVC.com and HSN.com, which we refer to as our "U.S. websites"; virtual multichannel video programming distributors (including Hulu + Live TV, AT&T TV, and YouTube TV); applications via streaming video; Facebook Live, Roku, Apple TV, Amazon Fire and Xfinity Flex; mobile applications; social pages and over-the-air broadcasters.

QVC's digital platforms enable consumers to purchase goods offered on our televised programming, along with a wide assortment of products that are available only on our U.S. websites. QVC.com, HSN.com and our other digital platforms (including our mobile applications, social pages and others) are natural extensions of our business model, allowing customers to engage in our shopping experience wherever they are, with live or on-demand content customized to the device they are using. In addition to offering video content, our U.S. websites allow shoppers to browse, research, compare and perform targeted searches for products, read customer reviews, control the order-entry process and conveniently access their account.

Internationally, QVC's televised shopping programs, including live and recorded content, are distributed to households outside of the U.S., primarily in Germany, Austria, Japan, the United Kingdom ("U.K."), the Republic of Ireland and Italy. In some of the countries where QVC operates, QVC's televised shopping programs are distributed across multiple QVC channels: QVC Style and QVC2 in Germany and QVC Beauty, QVC Extra and QVC Style in the U.K. Similar to the U.S., our international businesses also engage customers via websites, mobile applications, and social pages. QVC's international business employs product sourcing teams who select products tailored to the interests of each local market.

The Company's Japanese operations ("QVC-Japan") are conducted through a joint venture with Mitsui & Co., LTD ("Mitsui"). QVC-Japan is owned 60% by the Company and 40% by Mitsui. The Company and Mitsui share in all profits and losses based on their respective ownership interests. During the six months ended June 30, 2021 and 2020, QVC-Japan paid dividends to Mitsui of $31 million and $30 million, respectively.

The Company also has a joint venture with CNR Media Group, formerly known as China Broadcasting Corporation, a limited liability company owned by China National Radio (''CNR''). The Company owns a 49% interest in a CNR subsidiary, CNR Home Shopping Co., Ltd. (''CNRS''). CNRS operates a retail business in China through a shopping television channel with an associated website. This joint venture is accounted for as an equity method investment recorded as equity in income (losses) of investee in the condensed consolidated statements of operations. In June 2021, QVC entered into an agreement to sell its interest in CNRS. The transaction is expected to close in the third quarter of 2021.

The Company is an indirect wholly-owned subsidiary of Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB and QRTEP), which owns interests in a broad range of digital commerce businesses, including Qurate Retail's other wholly-owned subsidiary Zulily, LLC ("Zulily"), as well as other minority investments. QVC is part of the Qurate Retail Group, formerly QVC Group, a portfolio of brands including QVC, Zulily and Cornerstone Brands, Inc. ("CBI").

On December 31, 2018, QVC entered into the Fourth Amended and Restated Credit Agreement that provides for a $2.95 billion revolving credit facility as explained further in note 5. The Fourth Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by QVC or Zulily. Under the terms of the Fourth Amended and Restated Credit Agreement, QVC and Zulily are jointly and severally liable for all amounts borrowed on the $400 million tranche. In accordance with the accounting guidance for obligations resulting from joint and several liability arrangements, QVC will record a liability for amounts it has borrowed under the credit facility plus any additional amount it expects to repay on behalf of Zulily. As of June 30, 2021, there was $77 million borrowed by Zulily on the $400 million tranche of the Fourth Amended and Restated Credit Agreement, none of which the Company expects to repay on behalf of Zulily.

During each of the six months ended June 30, 2021 and 2020, QVC and Zulily engaged in multiple transactions relating to sales, sourcing of merchandise, marketing initiatives and business advisory services. QVC allocated expenses of $4 million to Zulily for each of the six months ended June 30, 2021 and 2020. Zulily allocated expenses of $5 million to QVC for each of the six months ended June 30, 2021 and 2020.

In September 2020, QVC and Zulily executed a Master Promissory Note ("Promissory Note") whereby Zulily may borrow up to $100 million at a variable interest rate equal to the LIBOR rate plus an applicable margin rate. The Promissory Note matures in September 2030. There were no borrowings on the Promissory Note as of June 30, 2021 and December 31, 2020.

During each of the six months ended June 30, 2021 and 2020, QVC and CBI engaged in multiple transactions relating to personnel and business advisory services. QVC allocated expenses of $11 million to CBI for each of the six months ended June 30, 2021 and 2020. CBI allocated expenses of $1 million to QVC for each of the six months ended June 30, 2021 and 2020.

In December 2019, a new coronavirus disease ("COVID-19'") pandemic was reported to have surfaced in Wuhan, China and has subsequently spread across the globe, including all of the countries in which QVC operates. As a result of the spread of COVID-19, certain local governmental agencies have imposed travel restrictions, local quarantines or stay at home restrictions to contain the spread, which has caused a significant disruption to most sectors of the economy.

Management is not presently aware of any events or circumstances arising from COVID-19 that would require the Company to update the estimates, judgments or revise the carrying value of our assets or liabilities. Management's estimates may change, however, as new events occur and additional information is obtained, and any such changes will be recognized in the consolidated financial statements. Actual results could differ from estimates, and any such differences may be material to our financial statements.

On December 30, 2020, the Company and Liberty Interactive LLC ("LIC") completed an internal realignment of the Company's global finance structure that resulted in a common control transaction with Qurate Retail. As part of the common control transaction, LIC issued a promissory note (“LIC Note”) to the Company with an initial face amount of $1.8 billion, a stated interest rate of 0.48% and a maturity of December 29, 2029. Interest on the LIC Note is to be paid annually beginning on December 29, 2021. QVC recorded $2 million and $4 million of related party interest income for the three and six months ended June 30, 2021, respectively, included in interest expense, net in the consolidated statement of operations.

The condensed consolidated financial statements include the accounts of QVC, Inc. and its majority-owned subsidiaries. All significant intercompany accounts and transactions were eliminated in consolidation.

The accompanying (a) condensed consolidated balance sheet as of December 31, 2020, which has been derived from audited financial statements, and (b) the interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in QVC's Annual Report on Form 10-K for the year ended December 31, 2020.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates include, but are not limited to, sales returns, uncollectible receivables, inventory obsolescence, internally-developed software, valuation of acquired intangible assets and goodwill and income taxes.

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Television Distribution Rights, Net

6 Months Ended

Jun. 30, 2021

Television Distribution Rights [Abstract]

Television Distribution Rights, Net

Television Distribution Rights, Net

Television distribution rights consisted of the following:

(in millions)	June 30, 2021		December 31, 2020
Television distribution rights	$	823	814
Less accumulated amortization	(636)		(751)
Television distribution rights, net	$	187	63

The Company recorded amortization expense of $23 million and $35 million for the three months ended June 30, 2021 and 2020, respectively, related to television distribution rights. For the six months ended June 30, 2021 and 2020, amortization expense for television distribution rights was $48 million and $69 million, respectively.

As of June 30, 2021, related amortization expense for each of the next five years ended December 31 was as follows (in millions):

Remainder of 2021	$	59
2022	103
2023	22
2024	3
2025	—

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Goodwill and Intangibles

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

Goodwill and Other Intangible Assets, Net

The changes in the carrying amount of goodwill by operating segment for the six months ended June 30, 2021 were as follows:

(in millions)	QxH		QVC-International	Total
Balance as of December 31, 2020	$	5,112	922	6,034
Exchange rate fluctuations	—		(31)	(31)
Balance as of June 30, 2021	$	5,112	891	6,003

Other intangible assets consisted of the following:

	June 30, 2021				December 31, 2020
(in millions)	Gross cost		Accumulated amortization	Other intangible assets, net	Gross cost	Accumulated amortization	Other intangible assets, net
Purchased and internally developed software	$	983	(694)	289	952	(663)	289
Affiliate and customer relationships	2,839		(2,582)	257	2,845	(2,564)	281
Debt origination fees	10		(5)	5	10	(4)	6
Trademarks (indefinite life)	2,878		—	2,878	2,878	—	2,878
	$	6,710	(3,281)	3,429	6,685	(3,231)	3,454

The Company recorded amortization expense of $41 million and $38 million for the three months ended June 30, 2021 and 2020, respectively, related to other intangible assets. For the six months ended June 30, 2021 and 2020, amortization expense for other intangible assets was $78 million and $75 million, respectively.

As of June 30, 2021, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions):

Remainder of 2021	$	100
2022	161
2023	120
2024	76
2025	47

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Accrued Liabilities

6 Months Ended

Jun. 30, 2021

Accrued Liabilities [Abstract]

Accrued liabilities

Accrued Liabilities

Accrued liabilities consisted of the following:

(in millions)	June 30, 2021		December 31, 2020
Accounts payable non-trade	$	295	408
Allowance for sales returns	186		267
Accrued compensation and benefits	155		214
Other	339		413
	$	975	1,302

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Long-Term Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt disclosure

Long-Term Debt and Finance Lease Obligations

Long-term debt and finance lease obligations consisted of the following:

(in millions)	June 30, 2021		December 31, 2020
3.5% Exchangeable Senior Debentures due 2031	$	507	393
4.375% Senior Secured Notes due 2023, net of original issue discount	750		750
4.85% Senior Secured Notes due 2024, net of original issue discount	600		600
4.45% Senior Secured Notes due 2025, net of original issue discount	599		599
4.75% Senior Secured Notes due 2027	575		575
4.375% Senior Secured Notes due 2028	500		500
5.45% Senior Secured Notes due 2034, net of original issue discount	399		399
5.95% Senior Secured Notes due 2043, net of original issue discount	300		300
6.375% Senior Secured Notes due 2067	225		225
6.25% Senior Secured Notes due 2068	500		500
Finance lease obligations (note 6)	158		168
Less debt issuance costs, net	(46)		(50)
Total debt and finance lease obligations	5,067		4,959
Less current portion	(524)		(410)
Long-term portion of debt and finance lease obligations	$	4,543	4,549

Exchangeable Senior Debentures

The Company has elected to account for its Motorola Solutions, Inc. 3.5% Senior Exchangeable Debentures Due 2031 (the “MSI Exchangeables”) using the fair value option. Accordingly, changes in the fair value of these instruments are recognized as losses on financial instruments in the statements of operations and in other comprehensive income as it relates to instrument specific credit risk on the consolidated statements of comprehensive income. The Company has classified for financial reporting purposes the MSI Exchangeables as a current liability as the MSI Exchangeables are exchangeable at the option of the holder at any time. Although we do not own underlying shares, the Company has entered into certain derivative transactions in order to hedge against upward price fluctuations on certain shares. Such derivative instruments are recognized in the other current assets line item in the condensed consolidated balance sheets, and are marked to fair value each reporting period. The changes in fair value are recognized in losses on financial instruments in the condensed statement of operations.

Senior Secured Notes

All of QVC's senior secured notes are secured by the capital stock of QVC and certain of its subsidiaries and have equal priority to the senior secured credit facility. The interest on QVC's senior secured notes is payable semi-annually with the exception of the 6.375% Senior Secured Notes due 2067 (the "2067 Notes") and the 6.25% Senior Secured Notes due 2068 (the "2068 Notes"), which is payable quarterly.

Senior Secured Credit Facility

On December 31, 2018, QVC entered into the Fourth Amended and Restated Credit Agreement with Zulily as borrowers (collectively, the “Borrowers”) which is a multi-currency facility that provides for a $2.95 billion revolving credit facility with a $450 million sub-limit for standby letters of credit and $1.5 billion of uncommitted incremental revolving loan commitments or incremental term loans. The Fourth Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by the Company or Zulily with a $50 million sub-limit for standby letters of credit. The remaining $2.55 billion and any incremental loans may be borrowed only by the Company. Borrowings that are alternate base rate loans will bear interest at a per annum rate equal to the base rate plus a margin that varies between 0.25% and 0.75% depending on the Borrowers’ combined ratio of Consolidated Total Debt to Consolidated EBITDA (the “Combined Consolidated Leverage Ratio”). Borrowings that are London Interbank Offered Rate ("LIBOR") loans will bear interest at a per annum rate equal to the applicable LIBOR rate plus a margin that varies between 1.25% and 1.75% depending on the Borrowers’ Combined Consolidated Leverage Ratio. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. No mandatory prepayments will be required other than when borrowings and letter of credit usage exceed availability; provided that, if Zulily ceases to be controlled by Qurate Retail, all of its loans must be repaid and its letters of credit cash collateralized. The facility matures on December 31, 2023. Payment of loans may be accelerated following certain customary events of default.

QVC had $2.85 billion available under the terms of the Fourth Amended and Restated Credit Agreement as of June 30, 2021, including the portion available under the $400 million tranche that Zulily may also borrow on.

The payment and performance of the Borrowers’ obligations under the Fourth Amended and Restated Credit Agreement are guaranteed by each of QVC’s Material Domestic Subsidiaries (as defined in the Fourth Amended and Restated Credit Agreement). Further, the borrowings under the Fourth Amended and Restated Credit Agreement are secured, pari passu with QVC’s existing notes, by a pledge of all of QVC’s equity interests. In addition, the payment and performance of the Borrowers’ obligations with respect to the $400 million tranche available to both QVC and Zulily are also guaranteed by Zulily and secured by a pledge of all of Zulily’s equity interests.

The Fourth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including certain restrictions on the Company and Zulily and each of their respective restricted subsidiaries (subject to certain exceptions) with respect to, among other things: incurring additional indebtedness; creating liens on property or assets; making certain loans or investments; selling or disposing of assets; paying certain dividends and other restricted payments; dissolving, consolidating or merging; entering into certain transactions with affiliates; entering into sale or leaseback transactions; restricting subsidiary distributions; and limiting the Company’s consolidated leverage ratio and the Borrowers’ Combined Consolidated Leverage Ratio.

Interest Rate Swap Arrangements

In July 2019, the Company entered into a three-year interest swap arrangement with a notional amount of $125 million. The swap arrangement did not qualify as a cash flow hedge under U.S. GAAP and the fair value of the swap instrument was in a net liability position of $2 million and $3 million as of June 30, 2021 and December 31, 2020, respectively, which was included in other long-term liabilities.

Changes in the fair value of the swaps are reflected in losses on financial instruments in the condensed consolidated statements of operations.

Other Debt Related Information

QVC was in compliance with all of its debt covenants as of June 30, 2021.

The weighted average interest rate applicable to all of the outstanding debt (excluding finance leases) prior to amortization of bond discounts and related debt issuance costs was 4.9% as of June 30, 2021.

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Lease and Transponder Service Agreements

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases of lessee disclosure

Leases

The Company has finance lease agreements with transponder and transmitter network suppliers for the right to transmit its signals in the U.S. and Germany. The Company is also party to a finance lease agreement for a warehouse.

QVC also leases data processing equipment, facilities, office space and land. These leases are classified as operating leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Our leases have remaining lease terms of less than 1 year to 13 years, some of which may include the option to extend or terminate the leases.

The components of lease cost for the three and six months ended June 30, 2021 and 2020, were as follows:

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Finance lease cost
Depreciation of leased assets	$	5	5	10	10
Interest on lease liabilities	2		2	4	4
Total finance lease cost	7		7	14	14
Operating lease cost	10		10	20	20
Total lease cost	$	17	17	34	34

The remaining weighted-average lease term and the weighted-average discount rate were as follows:

	June 30, 2021
Weighted-average remaining lease term (years):
Finance leases	8.2
Operating leases	10.8
Weighted-average discount rate:
Finance leases	5.2	%
Operating leases	5.9	%

Supplemental balance sheet information related to leases was as follows:

(in millions)	June 30, 2021		December 31, 2020
Operating Leases:
Operating lease right-of-use assets	$	211	221
Accrued liabilities	$	24	25
Other long-term liabilities	187		195
Total operating lease liabilities	$	211	220
Finance Leases:
Property and equipment	$	274	278
Accumulated depreciation	(147)		(141)
Property and equipment, net	$	127	137
Current portion of debt and finance lease obligations	$	17	18
Long-term portion of debt and finance lease obligations	141		150
Total finance lease liabilities	$	158	168

Supplemental cash flow information related to leases was as follows:

	Six months ended June 30,
(in millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	20	25
Operating cash flows from finance leases	4		4
Financing cash flows from finance leases	9		9
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	4	19

Future payments under noncancelable operating leases and finance leases with initial terms of one year or more as of June 30, 2021 consisted of the following:

(in millions)	Finance leases		Operating leases	Total leases
Remainder of 2021	$	12	19	31
2022	26		34	60
2023	25		28	53
2024	24		25	49
2025	21		21	42
Thereafter	89		168	257
Total lease payments	197		295	492
Less: imputed interest	(39)		(84)	(123)
Total lease liabilities	$	158	211	369

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Revenue (Notes)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

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

	Three months ended June 30, 2021				Six months ended June 30, 2021
(in millions)	QxH		QVC-International	Total	QxH	QVC-International	Total
Home	$	775	309	1,084	1,550	633	2,183
Beauty	294		193	487	580	357	937
Apparel	359		127	486	649	253	902
Accessories	272		71	343	510	137	647
Electronics	167		32	199	368	65	433
Jewelry	76		54	130	174	114	288
Other revenue	46		5	51	94	6	100
Total net revenue	$	1,989	791	2,780	3,925	1,565	5,490

	Three months ended June 30, 2020				Six months ended June 30, 2020
(in millions)	QxH		QVC-International	Total	QxH	QVC-International	Total
Home	$	803	286	1,089	1,484	543	2,027
Beauty	325		186	511	613	331	944
Apparel	302		100	402	601	201	802
Accessories	245		63	308	457	121	578
Electronics	217		31	248	391	53	444
Jewelry	82		47	129	180	96	276
Other revenue	36		—	36	76	3	79
Total net revenue	$	2,010	713	2,723	3,802	1,348	5,150

Consumer Product Revenue and Other Revenue

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

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

Revenue Recognition

Revenue is recognized when obligations with our customers are satisfied; generally this occurs at the time of shipment to our customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration we expect to receive in exchange for transferring goods, net of allowances for returns.

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

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

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

The Company generally extends payment terms with its customers of one year or less and does not consider the time value of money when recognizing revenue.

Significant Judgments

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

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income taxes

Income Taxes

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.

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.

For the three months ended June 30, 2021 and 2020, the Company recorded a tax provision of $96 million and $92 million, respectively, which represented an effective tax rate of 27.2% and 29.0%, respectively. For the six months ended June 30, 2021 and 2020, the Company recorded a tax provision of $181 million and $152 million, respectively, which represented an effective tax rate of 26.8% and 29.3%, respectively. The 2021 rate differs from the U.S. federal income tax rate of 21% due primarily to state and foreign tax expenses. The 2021 effective tax rate has decreased from the prior year for both the three months and six months ended June 30, 2021 primarily due to decreases in state tax expense and a valuation allowance established in the prior year for excess U.S. foreign tax credits.

The Company participates in a consolidated federal return filing with Qurate Retail. As of June 30, 2021, the Company's tax years through 2016 are closed for federal income tax purposes, and the Internal Revenue Service ("IRS") has completed its examination of the Company's 2017, 2018 and 2019 tax years. The Company's 2020 and 2021 tax years are being examined currently as part of the Qurate Retail consolidated return under the IRS's Compliance Assurance Process program. The Company, or one of its subsidiaries, files income tax returns in various states and foreign jurisdictions. As of June 30, 2021, the Company was under examination in the state of Pennsylvania, New York City, the U.K. and Japan.

The Company is a party to a Tax Liability Allocation and Indemnification Agreement (the “Tax Agreement”) with Qurate Retail. The Tax Agreement establishes the methodology for the calculation and payment of income taxes in connection with the consolidation of the Company with Qurate Retail for income tax purposes. Generally, the Tax Agreement provides that the Company will pay Qurate Retail 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 Qurate Retail, 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 Tax Agreement, the difference is recorded as either a dividend or capital contribution.

The amounts of the tax-related payable due to Qurate Retail as of June 30, 2021 and December 31, 2020 were $1 million and $47 million, respectively, and were included in accrued liabilities in the accompanying condensed consolidated balance sheets.

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Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesThe Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that the amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements.Network and information systems, including the Internet and telecommunication systems, third party delivery services and other technologies are critical to QVC's business activities. Substantially all of QVC's customer orders, fulfillment and delivery services are dependent upon the use of network and information systems, including the use of third party telecommunication and delivery service providers. If information systems including the Internet or telecommunication services are disrupted, or if the third party delivery services experience a disruption in their transportation delivery services, the Company could face a significant disruption in fulfilling QVC's customer orders and shipment of QVC's products. The Company has active disaster recovery programs in place to help mitigate risks associated with these critical business activities.

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Financial Instruments and Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair value disclosures

Financial Instruments and Fair Value Measurements

For assets and liabilities required to be reported or disclosed at fair value, U.S. GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability.

The Company's assets and liabilities measured or disclosed at fair value were as follows:

			Fair value measurements at June 30, 2021 using
(in millions)	Total		Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Significant unobservable inputs (Level 3)
Current assets:
Cash equivalents	$	255	255	—	—
Financial instrument asset (note 5)	107		—	107	—
Current liabilities:
Debt (note 5)	507		—	507	—
Long-term liabilities:
Debt (note 5)	4,707		769	3,938	—
Interest rate swap arrangements (note 5)	2		—	2	—

			Fair value measurements at December 31, 2020 using
(in millions)	Total		Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Significant unobservable inputs (Level 3)
Current assets:
Cash equivalents	$	240	240	—	—
Financial instrument asset (note 5)	23			23	—
Current liabilities:
Debt (note 5)	393		—	393	—
Long-term liabilities:
Debt (note 5)	4,705		743	3,962	—
Interest rate swap arrangements (note 5)	3		—	3	—

The 2067 Notes (ticker: QVCD) and the 2068 Notes (ticker: QVCC) are considered Level 1 fair value instruments as reported in the foregoing tables as they are traded on the New York Stock Exchange, which the Company considers to be an "active market," as defined by U.S. GAAP. The remainder of the Company's Level 2 financial liabilities are debt instruments and derivative instruments with quoted market prices that are not considered to be traded on "active markets." Accordingly, these financial instruments are reported in the foregoing tables as Level 2 fair value instruments.

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Information about QVC's Operating Segments

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment reporting disclosure

Information about QVC's Operating Segments

The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA (defined below), gross margin, average sales price per unit, number of units shipped and revenue. For segment reporting purposes, the Company defines Adjusted OIBDA, as net revenue less cost of goods sold, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its segments by identifying those items that are not directly a reflection of each segment's performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among the Company's businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization, stock-based compensation, and impairment loss (if any) that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP.

QVC's chief operating decision maker ("CODM") is QVC's Chief Executive Officer. QVC's CODM has ultimate responsibility for enterprise decisions. QVC's CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise. The segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. QVC's CODM relies on internal management reporting that analyzes enterprise results and segment results to the Adjusted OIBDA level.

For the three and six months ended June 30, 2021 and 2020, QVC identified QxH and QVC-International as its two reportable segments. Both operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the Internet and mobile applications in certain markets.

Performance measures

	Three months ended June 30,					Six months ended June 30,
	2021			2020		2021		2020
(in millions)	Net revenue		Adjusted OIBDA	Net revenue	Adjusted OIBDA	Net revenue	Adjusted OIBDA	Net revenue	Adjusted OIBDA
QxH	$	1,989	391	2,010	388	3,925	740	3,802	681
QVC-International	791		144	713	119	1,565	287	1,348	216
Consolidated QVC	$	2,780	535	2,723	507	5,490	1,027	5,150	897

Other information

	Three months ended June 30,					Six months ended June 30,
	2021			2020		2021		2020
(in millions)	Depreciation		Amortization	Depreciation	Amortization	Depreciation	Amortization	Depreciation	Amortization
QxH	$	24	61	29	70	50	120	58	138
QVC-International	14		3	14	3	28	6	28	6
Consolidated QVC	$	38	64	43	73	78	126	86	144

	June 30, 2021
(in millions)	Total assets		Capital expenditures	Property and equipment, net
QxH	$	13,958	81	722
QVC-International	2,315		13	370
Consolidated QVC	$	16,273	94	1,092

The following table provides a reconciliation of Adjusted OIBDA to operating income and income before income taxes:

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Adjusted OIBDA	$	535	507	1,027	897
Stock-based compensation	(11)		(10)	(20)	(16)
Depreciation and amortization	(102)		(116)	(204)	(230)
Operating income	422		381	803	651
Equity in losses of investee	—		(1)	—	(2)
Losses on financial instruments	(4)		—	(3)	(4)
Interest expense, net	(65)		(64)	(128)	(129)
Foreign currency (loss) gain	(2)		1	(4)	2
Other income	2		—	8	—
Income before income taxes	$	353	317	676	518

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Other Comprehensive Income

6 Months Ended

Jun. 30, 2021

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Comprehensive Income (Loss)

Other Comprehensive Income

The change in the component of accumulated other comprehensive loss, net of taxes ("AOCL"), is summarized as follows:

(in millions)	Comprehensive earnings attributable to debt credit risk adjustments		Foreign currency translation adjustments	AOCL
Balance at January 1, 2021	$	16	(33)	(17)
Other comprehensive income attributable to QVC, Inc. stockholder	(12)		(55)	(67)
Balance at June 30, 2021	4		(88)	(84)
Balance at January 1, 2020	$	—	(144)	(144)
Other comprehensive loss attributable to QVC, Inc. stockholder	—		(6)	(6)
Balance at June 30, 2020	—		(150)	(150)

The component of other comprehensive income is reflected in QVC's condensed consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive loss:

(in millions)	Before-tax amount		Tax benefit (expense)	Net-of-tax amount
Three months ended June 30, 2021
Foreign currency translation adjustments	$	10	(1)	9
Debt credit risk adjustment	1		—	1
Other comprehensive income	11		(1)	10
Three months ended June 30, 2020
Foreign currency translation adjustments	$	17	1	18
Other comprehensive income	17		1	18
Six months ended June 30, 2021
Foreign currency translation adjustments	$	(62)	(2)	(64)
Debt credit risk adjustment	(12)		—	(12)
Other comprehensive income	(74)		(2)	(76)
Six months ended June 30, 2020
Foreign currency translation adjustments	$	(6)	2	(4)
Other comprehensive loss	(6)		2	(4)

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Revenue Revenue (Policies)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue [Policy Text Block]

Revenue Recognition

Revenue is recognized when obligations with our customers are satisfied; generally this occurs at the time of shipment to our customers consistent with when control of the shipped product passes. The recognized revenue reflects the consideration we expect to receive in exchange for transferring goods, net of allowances for returns.

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

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

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

The Company generally extends payment terms with its customers of one year or less and does not consider the time value of money when recognizing revenue.

Significant Judgments

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

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Television Distribution Rights, Net (Tables)

6 Months Ended

Jun. 30, 2021

Television Distribution Rights [Abstract]

Schedule of television distribution rights

Television distribution rights consisted of the following:

(in millions)	June 30, 2021		December 31, 2020
Television distribution rights	$	823	814
Less accumulated amortization	(636)		(751)
Television distribution rights, net	$	187	63

Schedule of future amortization expense

As of June 30, 2021, related amortization expense for each of the next five years ended December 31 was as follows (in millions):

Remainder of 2021	$	59
2022	103
2023	22
2024	3
2025	—

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Goodwill (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The changes in the carrying amount of goodwill by operating segment for the six months ended June 30, 2021 were as follows:

(in millions)	QxH		QVC-International	Total
Balance as of December 31, 2020	$	5,112	922	6,034
Exchange rate fluctuations	—		(31)	(31)
Balance as of June 30, 2021	$	5,112	891	6,003

Schedule of acquired intangible assets by class

Other intangible assets consisted of the following:

	June 30, 2021				December 31, 2020
(in millions)	Gross cost		Accumulated amortization	Other intangible assets, net	Gross cost	Accumulated amortization	Other intangible assets, net
Purchased and internally developed software	$	983	(694)	289	952	(663)	289
Affiliate and customer relationships	2,839		(2,582)	257	2,845	(2,564)	281
Debt origination fees	10		(5)	5	10	(4)	6
Trademarks (indefinite life)	2,878		—	2,878	2,878	—	2,878
	$	6,710	(3,281)	3,429	6,685	(3,231)	3,454

Schedule of finite-lived intangible assets future amortization expense

As of June 30, 2021, the related amortization and interest expense for each of the next five years ended December 31 was as follows (in millions):

Remainder of 2021	$	100
2022	161
2023	120
2024	76
2025	47

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Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Accrued Liabilities [Abstract]

Schedule of accrued liabilities

Accrued liabilities consisted of the following:

(in millions)	June 30, 2021		December 31, 2020
Accounts payable non-trade	$	295	408
Allowance for sales returns	186		267
Accrued compensation and benefits	155		214
Other	339		413
	$	975	1,302

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of debt

Long-term debt and finance lease obligations consisted of the following:

(in millions)	June 30, 2021		December 31, 2020
3.5% Exchangeable Senior Debentures due 2031	$	507	393
4.375% Senior Secured Notes due 2023, net of original issue discount	750		750
4.85% Senior Secured Notes due 2024, net of original issue discount	600		600
4.45% Senior Secured Notes due 2025, net of original issue discount	599		599
4.75% Senior Secured Notes due 2027	575		575
4.375% Senior Secured Notes due 2028	500		500
5.45% Senior Secured Notes due 2034, net of original issue discount	399		399
5.95% Senior Secured Notes due 2043, net of original issue discount	300		300
6.375% Senior Secured Notes due 2067	225		225
6.25% Senior Secured Notes due 2068	500		500
Finance lease obligations (note 6)	158		168
Less debt issuance costs, net	(46)		(50)
Total debt and finance lease obligations	5,067		4,959
Less current portion	(524)		(410)
Long-term portion of debt and finance lease obligations	$	4,543	4,549

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Lease and Transponder Service Agreements (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Lease, Cost [Table Text Block]

The components of lease cost for the three and six months ended June 30, 2021 and 2020, were as follows:

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Finance lease cost
Depreciation of leased assets	$	5	5	10	10
Interest on lease liabilities	2		2	4	4
Total finance lease cost	7		7	14	14
Operating lease cost	10		10	20	20
Total lease cost	$	17	17	34	34

Weighted average lease term and discount rate [Table Text Block]

The remaining weighted-average lease term and the weighted-average discount rate were as follows:

	June 30, 2021
Weighted-average remaining lease term (years):
Finance leases	8.2
Operating leases	10.8
Weighted-average discount rate:
Finance leases	5.2	%
Operating leases	5.9	%

Leases, Supplemental Balance Sheet Information [Table Text Block]

Supplemental balance sheet information related to leases was as follows:

(in millions)	June 30, 2021		December 31, 2020
Operating Leases:
Operating lease right-of-use assets	$	211	221
Accrued liabilities	$	24	25
Other long-term liabilities	187		195
Total operating lease liabilities	$	211	220
Finance Leases:
Property and equipment	$	274	278
Accumulated depreciation	(147)		(141)
Property and equipment, net	$	127	137
Current portion of debt and finance lease obligations	$	17	18
Long-term portion of debt and finance lease obligations	141		150
Total finance lease liabilities	$	158	168

Leases, Supplemental Cash Flow Information [Table Text Block]

Supplemental cash flow information related to leases was as follows:

	Six months ended June 30,
(in millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	20	25
Operating cash flows from finance leases	4		4
Financing cash flows from finance leases	9		9
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	4	19

Future minimum lease payments [Table Text Block]

Future payments under noncancelable operating leases and finance leases with initial terms of one year or more as of June 30, 2021 consisted of the following:

(in millions)	Finance leases		Operating leases	Total leases
Remainder of 2021	$	12	19	31
2022	26		34	60
2023	25		28	53
2024	24		25	49
2025	21		21	42
Thereafter	89		168	257
Total lease payments	197		295	492
Less: imputed interest	(39)		(84)	(123)
Total lease liabilities	$	158	211	369

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Revenue (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

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

	Three months ended June 30, 2021				Six months ended June 30, 2021
(in millions)	QxH		QVC-International	Total	QxH	QVC-International	Total
Home	$	775	309	1,084	1,550	633	2,183
Beauty	294		193	487	580	357	937
Apparel	359		127	486	649	253	902
Accessories	272		71	343	510	137	647
Electronics	167		32	199	368	65	433
Jewelry	76		54	130	174	114	288
Other revenue	46		5	51	94	6	100
Total net revenue	$	1,989	791	2,780	3,925	1,565	5,490

	Three months ended June 30, 2020				Six months ended June 30, 2020
(in millions)	QxH		QVC-International	Total	QxH	QVC-International	Total
Home	$	803	286	1,089	1,484	543	2,027
Beauty	325		186	511	613	331	944
Apparel	302		100	402	601	201	802
Accessories	245		63	308	457	121	578
Electronics	217		31	248	391	53	444
Jewelry	82		47	129	180	96	276
Other revenue	36		—	36	76	3	79
Total net revenue	$	2,010	713	2,723	3,802	1,348	5,150

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Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of fair value, assets and liabilities measured on recurring basis

The Company's assets and liabilities measured or disclosed at fair value were as follows:

			Fair value measurements at June 30, 2021 using
(in millions)	Total		Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Significant unobservable inputs (Level 3)
Current assets:
Cash equivalents	$	255	255	—	—
Financial instrument asset (note 5)	107		—	107	—
Current liabilities:
Debt (note 5)	507		—	507	—
Long-term liabilities:
Debt (note 5)	4,707		769	3,938	—
Interest rate swap arrangements (note 5)	2		—	2	—

			Fair value measurements at December 31, 2020 using
(in millions)	Total		Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Significant unobservable inputs (Level 3)
Current assets:
Cash equivalents	$	240	240	—	—
Financial instrument asset (note 5)	23			23	—
Current liabilities:
Debt (note 5)	393		—	393	—
Long-term liabilities:
Debt (note 5)	4,705		743	3,962	—
Interest rate swap arrangements (note 5)	3		—	3	—

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Information about QVC's Operating Segments (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Revenue and Adjusted OIBDA by Segment

	Three months ended June 30,					Six months ended June 30,
	2021			2020		2021		2020
(in millions)	Net revenue		Adjusted OIBDA	Net revenue	Adjusted OIBDA	Net revenue	Adjusted OIBDA	Net revenue	Adjusted OIBDA
QxH	$	1,989	391	2,010	388	3,925	740	3,802	681
QVC-International	791		144	713	119	1,565	287	1,348	216
Consolidated QVC	$	2,780	535	2,723	507	5,490	1,027	5,150	897

Schedule of Depreciation and Amortization by Segment

	Three months ended June 30,					Six months ended June 30,
	2021			2020		2021		2020
(in millions)	Depreciation		Amortization	Depreciation	Amortization	Depreciation	Amortization	Depreciation	Amortization
QxH	$	24	61	29	70	50	120	58	138
QVC-International	14		3	14	3	28	6	28	6
Consolidated QVC	$	38	64	43	73	78	126	86	144

Schedule of Capital Expenditures and Total Assets by Segment

	June 30, 2021
(in millions)	Total assets		Capital expenditures	Property and equipment, net
QxH	$	13,958	81	722
QVC-International	2,315		13	370
Consolidated QVC	$	16,273	94	1,092

Reconciliation of Adjusted OIBDA to Income before Income Taxes

The following table provides a reconciliation of Adjusted OIBDA to operating income and income before income taxes:

	Three months ended June 30,			Six months ended June 30,
(in millions)	2021		2020	2021	2020
Adjusted OIBDA	$	535	507	1,027	897
Stock-based compensation	(11)		(10)	(20)	(16)
Depreciation and amortization	(102)		(116)	(204)	(230)
Operating income	422		381	803	651
Equity in losses of investee	—		(1)	—	(2)
Losses on financial instruments	(4)		—	(3)	(4)
Interest expense, net	(65)		(64)	(128)	(129)
Foreign currency (loss) gain	(2)		1	(4)	2
Other income	2		—	8	—
Income before income taxes	$	353	317	676	518

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Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2021

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The change in the component of accumulated other comprehensive loss, net of taxes ("AOCL"), is summarized as follows:

(in millions)	Comprehensive earnings attributable to debt credit risk adjustments		Foreign currency translation adjustments	AOCL
Balance at January 1, 2021	$	16	(33)	(17)
Other comprehensive income attributable to QVC, Inc. stockholder	(12)		(55)	(67)
Balance at June 30, 2021	4		(88)	(84)
Balance at January 1, 2020	$	—	(144)	(144)
Other comprehensive loss attributable to QVC, Inc. stockholder	—		(6)	(6)
Balance at June 30, 2020	—		(150)	(150)

Schedule of Component of Comprehensive Income (Loss)

The component of other comprehensive income is reflected in QVC's condensed consolidated statements of comprehensive income, net of taxes. The following table summarizes the tax effects related to the component of other comprehensive loss:

(in millions)	Before-tax amount		Tax benefit (expense)	Net-of-tax amount
Three months ended June 30, 2021
Foreign currency translation adjustments	$	10	(1)	9
Debt credit risk adjustment	1		—	1
Other comprehensive income	11		(1)	10
Three months ended June 30, 2020
Foreign currency translation adjustments	$	17	1	18
Other comprehensive income	17		1	18
Six months ended June 30, 2021
Foreign currency translation adjustments	$	(62)	(2)	(64)
Debt credit risk adjustment	(12)		—	(12)
Other comprehensive income	(74)		(2)	(76)
Six months ended June 30, 2020
Foreign currency translation adjustments	$	(6)	2	(4)
Other comprehensive loss	(6)		2	(4)

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Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 30, 2020	Dec. 31, 2018
General business information
Dividends paid to noncontrolling interest		$ 31	$ 30
Note receivable - related party (note 1)	$ 1,825	$ 1,825		$ 1,825	$ 1,800
Receivable with Imputed Interest, Effective Yield (Interest Rate)		0.48%
Interest Income, Related Party	2	$ 4
Revolving Credit Facility [Member]
General business information
Line of Credit Facility, Maximum Borrowing Capacity						$ 2,950
Revolving Credit Facility [Member] | Tranche One, Shared with Related Party
General business information
Line of Credit Facility, Maximum Borrowing Capacity	$ 400	$ 400				$ 400
QVC-Japan
General business information
Investment Owned, Percent of Net Assets	60.00%	60.00%
QVC-Japan | Mitsui [Domain]
General business information
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	40.00%	40.00%
CNR Home Shopping Co., Ltd.
General business information
Equity Method Investment, Ownership Percentage	49.00%	49.00%
zulily, llc [Member]
General business information
Long-term Line of Credit	$ 77	$ 77
QVC to Zulily allocated expenses [Member] | zulily, llc [Member]
General business information
Related Party Transaction, Amounts of Transaction		4	4
Zulily to QVC allocated expenses [Member] | zulily, llc [Member]
General business information
Related Party Transaction, Amounts of Transaction		5	5
QVC to CBI Allocated Expenses [Member] | Cornerstone Brands Inc [Member]
General business information
Related Party Transaction, Expenses from Transactions with Related Party		11	11
CBI to QVC allocated expenses [Member] | Cornerstone Brands Inc [Member]
General business information
Related Party Transaction, Expenses from Transactions with Related Party		1	$ 1
QVC to Zulily loan [Member] | zulily, llc [Member]
General business information
Line of Credit Facility, Maximum Borrowing Capacity	$ 100	$ 100
Line of Credit Facility, Interest Rate Description		variable interest rate equal to the LIBOR rate plus an applicable margin rate

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Television Distribution Rights, Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Television distribution rights, net	$ 187		$ 187		$ 63
Television distribution rights
Finite-Lived Intangible Assets [Line Items]
Television distribution rights	823		823		814
Less accumulated amortization	(636)		(636)		(751)
Television distribution rights, net	187		187		$ 63
Amortization	$ 23	$ 35	$ 48	$ 69

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Television Distribution Rights, Net (Future Amortization Expense) (Details) - Television distribution rights $ in Millions	Jun. 30, 2021 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2021	$ 59
2022	103
2023	22
2024	3
2025	$ 0

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Intangible Assets, Goodwill and Other (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Goodwill [Line Items]
Balance as of December 31, 2020			$ 6,034
Exchange rate fluctuations			(31)
Balance as of June 30, 2021	$ 6,003		6,003
Amortization of other intangible assets	41	$ 38	$ 78	$ 75
Document Period End Date			Jun. 30, 2021
Gross cost
Purchased and internally developed software	983		$ 983		$ 952
Affiliate and customer relationships	2,839		2,839		2,845
Debt origination fees	10		10		10
Trademarks (indefinite life)	2,878		2,878		2,878
Other intangible assets (excluding goodwill), gross	6,710		6,710		6,685
Accumulated amortization
Purchased and internally developed software	(694)		(694)		(663)
Affiliate and customer relationships	(2,582)		(2,582)		(2,564)
Debt origination fees	(5)		(5)		(4)
Other intangible assets (excluding goodwill), accumulated amortization	(3,281)		(3,281)		(3,231)
Other intangible assets, net
Purchased and internally developed software	289		289		289
Affiliate and customer relationships	257		257		281
Debt origination fees	5		5		6
Other intangible assets (excluding goodwill), net	3,429		3,429		$ 3,454
Finite-Lived Intangible Assets [Line Items]
Amortization of other intangible assets	41	$ 38	78	$ 75
QxH [Member]
Goodwill [Line Items]
Balance as of December 31, 2020			5,112
Exchange rate fluctuations			0
Balance as of June 30, 2021	5,112		5,112
QVC-International
Goodwill [Line Items]
Balance as of December 31, 2020			922
Exchange rate fluctuations			(31)
Balance as of June 30, 2021	891		891
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Remainder of 2021	100		100
2022	161		161
2023	120		120
2024	76		76
2025	$ 47		$ 47

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Accrued Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Accrued Liabilities [Abstract]
Accounts payable non-trade	$ 295	$ 408
Allowance for sales returns	186	267
Accrued compensation and benefits	155	214
Other	339	413
Accrued liabilities	$ 975	$ 1,302

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Long-Term Debt (Debt) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jul. 01, 2019
Debt Instrument [Line Items]
Derivative, Notional Amount			$ 125
Finance Lease, Liability	$ 158	$ 168
Debt Issuance Costs, Noncurrent, Net	(46)	(50)
Total debt and finance lease obligations	5,067	4,959
Debt, Current	(524)	(410)
Long-term Debt, Excluding Current Maturities	$ 4,543	4,549
4.375% Senior Secured Notes due 2023, net of original issue discount
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.375%
Debt Instrument Net of Unamortized Discounts Premium	$ 750	750
4.85% Senior Secured Notes due 2024, net of original issue discount
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.85%
Debt Instrument Net of Unamortized Discounts Premium	$ 600	600
4.45% Senior Secured Notes due 2025, net of original issue discount
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.45%
Debt Instrument Net of Unamortized Discounts Premium	$ 599	599
4.75% Senior Secured Notes
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.75%
Debt Instrument Net of Unamortized Discounts Premium	$ 575	575
4.375% Senior Secured Notes due 2028
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.375%
Debt Instrument Net of Unamortized Discounts Premium	$ 500	500
5.45% Senior Secured Notes due 2034, net of original issue discount
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.45%
Debt Instrument Net of Unamortized Discounts Premium	$ 399	399
5.95% Senior Secured Notes due 2043, net of original issue discount
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.95%
Debt Instrument Net of Unamortized Discounts Premium	$ 300	300
6.375% Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.375%
Debt Instrument Net of Unamortized Discounts Premium	$ 225	225
6.25% Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.25%
Debt Instrument Net of Unamortized Discounts Premium	$ 500	500
Finance lease obligations (note 6)
Debt Instrument [Line Items]
Finance Lease, Liability	$ 158	168
Exchangeable Senior Debentures Due 2031
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.50%
Debt Instrument Net of Unamortized Discounts Premium	$ 507	$ 393

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Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jul. 01, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Debt Instrument, Lower Range of Basis Spread on Variable Rate	0.25%
Debt Instrument, Higher Range of Basis Spread on Variable Rate	0.75%
Line of Credit Facility, Remaining Borrowing Capacity	$ 2,850
Derivative, Notional Amount			$ 125
Derivative Asset, Current	$ 2	$ 3
Debt, Weighted Average Interest Rate	4.90%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity				$ 2,950
Line of Credit Facility, Standby Letter of Credit				450
Line of credit facility, uncommitted loan				1,500
Tranche One, Shared with Related Party | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 400			400
Tranche One, Shared with Related Party | Standby Letters of Credit
Debt Instrument [Line Items]
Line of Credit Facility, Standby Letter of Credit				50
QVC | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity				$ 2,550
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt Instrument, Lower Range of Basis Spread on Variable Rate	1.25%
Debt Instrument, Higher Range of Basis Spread on Variable Rate	1.75%
6.375% Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.375%
6.25% Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.25%

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Lease and Transponder Service Agreements (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Lessee Leasing Arrangement, Term of Contract			12 months
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability			$ 4	$ 19
Operating Lease, Liability	$ 211		211		$ 220
Lease, Cost [Abstract]
Finance Lease, Right-of-Use Asset, Amortization	5	$ 5	10	10
Finance Lease, Interest Expense	2	2	4	4
Finance Lease, Total Cost	7	7	14	14
Operating leases expense net	10	10	20	20
Total Lease Cost	$ 17	$ 17	$ 34	34
Weighted average lease term and discount rate [Abstract]
Finance Lease, Weighted Average Remaining Lease Term	8 years 2 months 12 days		8 years 2 months 12 days
Operating Lease, Weighted Average Remaining Lease Term	10 years 9 months 18 days		10 years 9 months 18 days
Finance Lease, Weighted Average Discount Rate, Percent	5.20%		5.20%
Operating Lease, Weighted Average Discount Rate, Percent	5.90%		5.90%
Supplemental balance sheet information [Abstract]
Operating Lease, Right-of-Use Asset	$ 211		$ 211		221
Operating Lease, Liability, Current	24		24		25
Operating Lease, Liability, Noncurrent	187		187		195
Finance Lease, Right of Use Asset, Gross	274		274		278
Finance Lease, Right-of-Use Asset, Accumulated Amortization	(147)		(147)		(141)
Finance Lease, Right-of-Use Asset	127		127		137
Finance Lease, Liability, Current	17		17		18
Finance Lease, Liability, Noncurrent	141		141		150
Finance Lease, Liability	158		158		$ 168
Supplemental Cash Flow Information [Abstract]
Operating Lease, Payments			20	25
Finance Lease, Interest Payment on Liability			4	4
Finance Lease, Principal Payments			9	9
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability			4	$ 19
Finance Lease, Liability, Payment, Due [Abstract]
Remainder of 2021	12		12
2022	26		26
2023	25		25
2024	24		24
2025	21		21
Thereafter	89		89
Total lease payments	197		197
Imputed interest on finance lease	(39)		(39)
Operating leases
Remainder of 2021	19		19
2022	34		34
2023	28		28
2024	25		25
2025	21		21
Thereafter	168		168
Total	295		295
Imputed interest of operating leases	(84)		(84)
Total Future payments, Leases [Abstract]
Remainder of 2021	31		31
2022	60		60
2023	53		53
2024	49		49
2025	42		42
Thereafter	257		257
Total Lease Payments Due	492		492
Imputed interest on lease liabilities	(123)		(123)
Lease Liability, Total	$ 369		$ 369
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee Leasing Arrangement, Term of Contract			1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee Leasing Arrangement, Term of Contract			13 years

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Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 2,780	$ 2,723	$ 5,490	$ 5,150
Home
Disaggregation of Revenue [Line Items]
Revenues	1,084	1,089	2,183	2,027
Apparel [Member]
Disaggregation of Revenue [Line Items]
Revenues	486	402	902	802
Beauty [Member]
Disaggregation of Revenue [Line Items]
Revenues	487	511	937	944
Accessories
Disaggregation of Revenue [Line Items]
Revenues	343	308	647	578
Jewelry
Disaggregation of Revenue [Line Items]
Revenues	130	129	288	276
Electronics
Disaggregation of Revenue [Line Items]
Revenues	199	248	433	444
Other revenue
Disaggregation of Revenue [Line Items]
Revenues	51	36	100	79
QxH [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,989	2,010	3,925	3,802
QxH [Member] | Home
Disaggregation of Revenue [Line Items]
Revenues	775	803	1,550	1,484
QxH [Member] | Apparel [Member]
Disaggregation of Revenue [Line Items]
Revenues	359	302	649	601
QxH [Member] | Beauty [Member]
Disaggregation of Revenue [Line Items]
Revenues	294	325	580	613
QxH [Member] | Accessories
Disaggregation of Revenue [Line Items]
Revenues	272	245	510	457
QxH [Member] | Jewelry
Disaggregation of Revenue [Line Items]
Revenues	76	82	174	180
QxH [Member] | Electronics
Disaggregation of Revenue [Line Items]
Revenues	167	217	368	391
QxH [Member] | Other revenue
Disaggregation of Revenue [Line Items]
Revenues	46	36	94	76
QVC-International
Disaggregation of Revenue [Line Items]
Revenues	791	713	1,565	1,348
QVC-International | Home
Disaggregation of Revenue [Line Items]
Revenues	309	286	633	543
QVC-International | Apparel [Member]
Disaggregation of Revenue [Line Items]
Revenues	127	100	253	201
QVC-International | Beauty [Member]
Disaggregation of Revenue [Line Items]
Revenues	193	186	357	331
QVC-International | Accessories
Disaggregation of Revenue [Line Items]
Revenues	71	63	137	121
QVC-International | Jewelry
Disaggregation of Revenue [Line Items]
Revenues	54	47	114	96
QVC-International | Electronics
Disaggregation of Revenue [Line Items]
Revenues	32	31	65	53
QVC-International | Other revenue
Disaggregation of Revenue [Line Items]
Revenues	$ 5	$ 0	$ 6	$ 3

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Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Income Tax Contingency [Line Items]
Income tax expense	$ (96)	$ (92)	$ (181)	$ (152)
Effective Income Tax Rate Reconciliation, Percent	27.20%	29.00%	26.80%	29.30%
UNITED STATES
Income Tax Contingency [Line Items]
Effective income tax rate reconciliation, at federal statutory income tax rate, percent			21.00%
Liberty | Tax Agreement
Income Tax Contingency [Line Items]
Current tax payments due to related parties	$ 1		$ 1		$ 47

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Financial Instruments and Fair Value Measurements (Details) - Recurring - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Current Assets, Fair Value Disclosure
Cash equivalents	$ 255	$ 240
Credit Risk Derivative Assets, at Fair Value	107	23
Short-term Debt, Fair Value	507	393
Long-term liabilities
Long-term Debt, Fair Value	4,707	4,705
Derivative Liability	2	3
Level 1
Current Assets, Fair Value Disclosure
Cash equivalents	255	240
Long-term liabilities
Long-term Debt, Fair Value	769	743
Derivative Liability		0
Level 2
Current Assets, Fair Value Disclosure
Credit Risk Derivative Assets, at Fair Value	107	23
Short-term Debt, Fair Value	507	393
Long-term liabilities
Long-term Debt, Fair Value	3,938	3,962
Derivative Liability	$ 2	$ 3

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Information about QVC's Operating Segments (Revenue and Adjusted OIBDA by Segment) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Adjusted OIBDA Excluding Transaction Related Costs	$ 535	$ 507	$ 1,027	$ 897
Revenues	2,780	2,723	5,490	5,150
QxH [Member]
Segment Reporting Information [Line Items]
Adjusted OIBDA Excluding Transaction Related Costs	391	388	740	681
Revenues	1,989	2,010	3,925	3,802
QVC-International
Segment Reporting Information [Line Items]
Adjusted OIBDA Excluding Transaction Related Costs	144	119	287	216
Revenues	$ 791	$ 713	$ 1,565	$ 1,348

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Information about QVC's Operating Segments (Depreciation/Amortization by Segment) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Depreciation	$ 38	$ 43	$ 78	$ 86
Amortization	64	73	126	144
QxH [Member]
Segment Reporting Information [Line Items]
Depreciation	24	29	50	58
Amortization	61	70	120	138
QVC-International
Segment Reporting Information [Line Items]
Depreciation	14	14	28	28
Amortization	$ 3	$ 3	$ 6	$ 6

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Information about QVC's Operating Segments (Total Assets and Capital Expenditures by Segment) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total assets	$ 16,273	$ 16,558
Capital expenditures	94
Property and equipment, net of accumulated depreciation of $1,433 at June 30, 2021 and $1,544 at December 31, 2020	1,092	$ 1,178
QxH [Member]
Segment Reporting Information [Line Items]
Total assets	13,958
Capital expenditures	81
Property and equipment, net of accumulated depreciation of $1,433 at June 30, 2021 and $1,544 at December 31, 2020	722
QVC-International
Segment Reporting Information [Line Items]
Total assets	2,315
Capital expenditures	13
Property and equipment, net of accumulated depreciation of $1,433 at June 30, 2021 and $1,544 at December 31, 2020	$ 370

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Information about QVC's Operating Segments (Reconciliation of Adjusted OIBDA to Income before Income Taxes) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting [Abstract]
Adjusted OIBDA Excluding Transaction Related Costs	$ 535	$ 507	$ 1,027	$ 897
Stock-based compensation	(11)	(10)	(20)	(16)
Depreciation and amortization	(102)	(116)	(204)	(230)
Operating Income (Loss)	422	381	803	651
Equity in losses of investee	0	(1)	0	(2)
Gain (Loss) on Derivative Instruments, Net, Pretax	(4)	0	(3)	(4)
Interest expense, net	(65)	(64)	(128)	(129)
Foreign currency (loss) gain	(2)	1	(4)	2
Income before income taxes	353	317	676	518
Other Income	$ 2	$ 0	$ 8	$ 0

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Other Comprehensive Income (Accumulated Other Comprehensive Income) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Foreign currency translation adjustments
Beginning balance	$ (33)	$ (144)
Other comprehensive loss attributable to QVC, Inc. stockholder	(55)	(6)
Ending balance	(88)	(150)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(67)
AOCL
Beginning balance	(17)	(144)
Ending balance	(84)	(150)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(67)
Accumulated other comprehensive loss	(84)	(150)
Accumulated Other Comprehensive Income Loss Attributable To Debt Credit Risk Adjustment Member
Foreign currency translation adjustments
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(12)
AOCL
Beginning balance	16
Ending balance	4
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(12)
Accumulated other comprehensive loss	$ 4
QVC, Inc. stockholder [Member]
Foreign currency translation adjustments
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent		(6)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent		$ (6)

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Subsequent Events (Details) $ in Millions	Jun. 30, 2021 USD ($)
Subsequent Event [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 2,850