10-Q

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 March 31, 2024

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 001-33982

QURATE RETAIL, INC.

(Exact name of Registrant as specified in its charter)

​ incorporation or organization)	​ Identification No.)
State of Delaware (State or other jurisdiction of incorporation or organization)	84-1288730 (I.R.S. Employer Identification No.)
12300 Liberty Boulevard Englewood, Colorado (Address of principal executive offices)	80112 (Zip Code)

Registrant's telephone number, including area code: (720) 875-5300

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Series A common stock	QRTEA	The Nasdaq Stock Market LLC
Series B common stock	QRTEB	The Nasdaq Stock Market LLC
8.0% Series A Cumulative Redeemable Preferred Stock	QRTEP	The Nasdaq Stock Market LLC

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 ⌧   No ◻

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 ⌧    No ◻

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 ☐ Accelerated Filer ☒ 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. ☐

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

The number of outstanding shares of Qurate Retail, Inc.'s common stock as of April 30, 2024 was:

Series A common stock	387,931,205
Series B common stock	8,927,840

Table of Contents

PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
QURATE RETAIL, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (unaudited)	I-3
QURATE RETAIL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (unaudited)	I-5
QURATE RETAIL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Comprehensive Earnings (Loss) (unaudited)	I-6
QURATE RETAIL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (unaudited)	I-7
QURATE RETAIL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Equity (unaudited)	I-8
QURATE RETAIL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (unaudited)	I-9
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	I-22
Item 3. Quantitative and Qualitative Disclosures about Market Risk.	I-34
Item 4. Controls and Procedures.	I-34
PART II—OTHER INFORMATION	II-1
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	II-1
Item 5. Other Information	II-1
Item 6. Exhibits	II-2
SIGNATURES	II-3

I-2

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(unaudited)

	March 31,		December 31,
	2024		2023
	amounts in millions
Assets
Current assets:
Cash and cash equivalents	$	1,102	1,121
Trade and other receivables, net of allowance for credit losses of $99 million and $102 million, respectively		980	1,308
Inventory, net		1,134	1,044
Other current assets		170	209
Total current assets		3,386	3,682
Property and equipment, net		496	512
Intangible assets not subject to amortization (note 5):
Goodwill		3,141	3,164
Trademarks		2,698	2,698
		5,839	5,862
Intangible assets subject to amortization, net (note 5)		495	526
Operating lease right-of-use assets		629	635
Other assets, at cost, net of accumulated amortization		136	151
Total assets	$	10,981	11,368

(continued)

See accompanying notes to condensed consolidated financial statements.

I-3

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Continued)

(unaudited)

	March 31,		December 31,
	2024		2023
	amounts in millions,
	except share amounts
Liabilities and Equity
Current liabilities:
Accounts payable	$	789	895
Accrued liabilities		715	983
Current portion of debt, $354 million and $219 million measured at fair value (note 6)		939	642
Other current liabilities		100	97
Total current liabilities		2,543	2,617
Long-term debt (note 6)		4,552	4,698
Deferred income tax liabilities		1,504	1,531
Preferred stock (note 7)		1,272	1,270
Operating lease liabilities		617	615
Other liabilities		142	148
Total liabilities		10,630	10,879
Equity
Stockholders' equity:
Series A common stock, $.01 par value. Authorized 4,000,000,000 shares; issued and outstanding 387,931,205 shares at March 31, 2024 and 383,047,720 shares at December 31, 2023		4	4
Series B common stock, $.01 par value. Authorized 150,000,000 shares; issued and outstanding 8,927,840 shares at March 31, 2024 and 8,700,380 shares at December 31, 2023		—	—
Series C common stock, $.01 par value. Authorized 4,000,000,000 shares; no shares issued		—	—
Additional paid-in capital		107	99
Accumulated other comprehensive earnings (loss), net of taxes		(51)	86
Retained earnings		195	196
Total stockholders' equity		255	385
Noncontrolling interests in equity of subsidiaries		96	104
Total equity		351	489
Commitments and contingencies (note 8)
Total liabilities and equity	$	10,981	11,368

See accompanying notes to condensed consolidated financial statements.

I-4

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(unaudited)

	Three months ended
	March 31,
	2024		2023
	amounts in millions, except per share amounts
Total revenue, net	$	2,342	2,644
Operating costs and expenses:
Cost of goods sold (exclusive of depreciation shown separately below)		1,511	1,809
Operating expense		180	194
Selling, general and administrative, including stock-based compensation (note 2)		408	478
Depreciation and amortization		99	100
Gain on sale of assets and leaseback transactions (note 8)		(1)	(113)
		2,197	2,468
Operating income (loss)		145	176
Other income (expense):
Interest expense		(117)	(94)
Dividend and interest income		12	11
Realized and unrealized gains (losses) on financial instruments, net (note 4)		(7)	(32)
Other, net		(2)	4
		(114)	(111)
Earnings (loss) before income taxes		31	65
Income tax (expense) benefit		(23)	(32)
Net earnings (loss)		8	33
Less net earnings (loss) attributable to the noncontrolling interests		9	13
Net earnings (loss) attributable to Qurate Retail, Inc. shareholders	$	(1)	20
Basic net earnings (loss) attributable to Series A and Series B Qurate Retail, Inc. shareholders per common share (note 3):	$	—	0.05
Diluted net earnings (loss) attributable to Series A and Series B Qurate Retail, Inc. shareholders per common share (note 3):	$	—	0.05

See accompanying notes to condensed consolidated financial statements.

I-5

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Earnings (Loss)

(unaudited)

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Net earnings (loss)	$	8	33
Other comprehensive earnings (loss), net of taxes:
Foreign currency translation adjustments		(44)	20
Recognition of previously unrealized losses (gains) on debt, net		—	(19)
Credit risk on fair value debt instruments gains (loss)		(99)	129
Other comprehensive earnings (loss)		(143)	130
Comprehensive earnings (loss)		(135)	163
Less comprehensive earnings (loss) attributable to the noncontrolling interests		3	12
Comprehensive earnings (loss) attributable to Qurate Retail, Inc. shareholders	$	(138)	151

See accompanying notes to condensed consolidated financial statements.

I-6

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(unaudited)

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	8	33
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		99	100
Stock-based compensation		16	16
Realized and unrealized (gains) losses on financial instruments, net		7	32
Gain on sale of assets and sale leaseback transactions		(1)	(113)
Gain on insurance proceeds, net of fire related costs		—	(17)
Insurance proceeds received for operating expenses and business interruption losses		—	37
Deferred income tax expense (benefit)		(2)	(2)
Other, net		4	9
Changes in operating assets and liabilities
Decrease (increase) in accounts receivable		313	294
Decrease (increase) in inventory		(94)	25
Decrease (increase) in prepaid expenses and other assets		45	48
(Decrease) increase in trade accounts payable		(101)	(167)
(Decrease) increase in accrued and other liabilities		(268)	(279)
Net cash provided (used) by operating activities		26	16
Cash flows from investing activities:
Capital expenditures		(40)	(54)
Expenditures for television distribution rights		(2)	(38)
Cash proceeds from dispositions of investments		6	1
Proceeds from sale of fixed assets		6	198
Insurance proceeds received for fixed asset loss		—	18
Payments for settlements of financial instruments		—	(179)
Proceeds from settlements of financial instruments		—	167
Other investing activities, net		(1)	(1)
Net cash provided (used) by investing activities		(31)	112
Cash flows from financing activities:
Borrowings of debt		1,570	677
Repayments of debt		(1,555)	(803)
Dividends paid to noncontrolling interest		(11)	(12)
Dividends paid to common shareholders		(4)	(7)
Indemnification agreement settlement		—	24
Other financing activities, net		(2)	(1)
Net cash provided (used) by financing activities		(2)	(122)
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash		(12)	4
Net increase (decrease) in cash, cash equivalents and restricted cash		(19)	10
Cash, cash equivalents and restricted cash at beginning of period		1,136	1,285
Cash, cash equivalents and restricted cash at end of period	$	1,117	1,295

The following table reconciles cash, cash equivalents and restricted cash reported in our condensed consolidated balance sheets to the total amount presented in our condensed consolidated statements of cash flows:

		March 31,	December 31,
		2024	2023
	in millions
Cash and cash equivalents	$	1,102	1,121
Restricted cash included in other current assets		15	15
Total cash, cash equivalents and restricted cash in the condensed consolidated statement of cash flows	$	1,117	1,136

See accompanying notes to condensed consolidated financial statements.

I-7

QURATE RETAIL, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Equity

(unaudited)

	Stockholders' Equity
						Accumulated
					Additional	other		Noncontrolling
	Preferred		Common stock		paid-in	comprehensive	Retained	interest in equity	Total
	stock		Series A	Series B	capital	earnings (loss)	earnings	of subsidiaries	equity
	amounts in millions
Balance at January 1, 2024	$	—	4	—	99	86	196	104	489
Net earnings (loss)		—	—	—	—	—	(1)	9	8
Other comprehensive earnings (loss)		—	—	—	—	(137)	—	(6)	(143)
Stock-based compensation		—	—	—	9	—	—	—	9
Distribution to noncontrolling interest		—	—	—	—	—	—	(11)	(11)
Withholding taxes on net share settlements of stock-based compensation		—	—	—	(2)	—	—	—	(2)
Other		—	—	—	1	—	—	—	1
Balance at March 31, 2024	$	—	4	—	107	(51)	195	96	351

	Stockholders' Equity
						Accumulated
					Additional	other		Noncontrolling
	Preferred		Common stock		paid-in	comprehensive	Retained	interest in equity	Total
	stock		Series A	Series B	capital	earnings (loss)	earnings	of subsidiaries	equity
	amounts in millions
Balance at January 1, 2023	$	—	4	—	53	18	337	113	525
Net earnings (loss)		—	—	—	—	—	20	13	33
Other comprehensive earnings (loss)		—	—	—	—	131	—	(1)	130
Stock-based compensation		—	—	—	14	—	—	—	14
Distribution to noncontrolling interest		—	—	—	—	—	—	(12)	(12)
Withholding taxes on net share settlements of stock-based compensation		—	—	—	(1)	—	—	—	(1)
Other		—	—	—	1	—	1	—	2
Balance at March 31, 2023	$	—	4	—	67	149	358	113	691

See accompanying notes to condensed consolidated financial statements.

I-8

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(unaudited)

(1)   Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of Qurate Retail, Inc. and its controlled subsidiaries (collectively, "Qurate Retail," the "Company," “Consolidated Qurate Retail,” “us,” “we,” or “our” unless the context otherwise requires). All significant intercompany accounts and transactions have been eliminated in consolidation. Qurate Retail is made up of wholly-owned subsidiaries QVC, Inc. (“QVC”), which includes HSN, Inc. (“HSN”), Cornerstone Brands, Inc. (“CBI”), and other cost method investments.

Qurate Retail is primarily engaged in the video and online commerce industries in North America, Europe and Asia. The businesses of the Company’s wholly-owned subsidiaries, QVC and CBI, are seasonal due to a higher volume of sales in the fourth calendar quarter related to year-end holiday shopping.  

The accompanying (a) condensed consolidated balance sheet as of December 31, 2023, 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 ("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 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. Additionally, certain prior period amounts have been reclassified for comparability with current period presentation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in Qurate Retail's Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 10-K”).

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of 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. Qurate Retail considers (i) fair value measurements, (ii) accounting for income taxes, and (iii) estimates of retail-related adjustments and allowances to be its most significant estimates.    

Qurate Retail has entered into certain agreements with Liberty Media Corporation ("LMC"), a separate publicly traded company. These agreements include a reorganization agreement, services agreement and facilities sharing agreement.  As a result of certain corporate transactions, LMC and Qurate Retail may have obligations to each other for certain tax related matters. Neither Qurate Retail nor LMC has any stock ownership, beneficial or otherwise, in the other. In connection with a split-off transaction that occurred in the first quarter of 2018 (the “GCI Liberty Split-Off”), Qurate Retail and GCI Liberty, Inc. (“GCI Liberty”) entered into a tax sharing agreement. Pursuant to the tax sharing agreement, GCI Liberty agreed to indemnify Qurate Retail for taxes and tax-related losses resulting from the GCI Liberty Split-Off to the extent such taxes or tax-related losses (i) result primarily from, individually or in the aggregate, the breach of certain restrictive covenants made by GCI Liberty (applicable to actions or failures to act by GCI Liberty and its subsidiaries following the completion of the GCI Liberty Split-Off), or (ii) result from Section 355(e) of the Internal Revenue Code applying to the GCI Liberty Split-Off as a result of the GCI Liberty Split-Off being part of a plan (or series of related transactions) pursuant to which one or more persons acquire, directly or indirectly, a 50-percent or greater interest (measured by vote or value) in the stock of GCI Liberty (or any successor corporation). Following a merger between Liberty Broadband Corporation (“Liberty Broadband”) and GCI Liberty, Liberty Broadband has assumed the tax sharing agreement.

In December 2019, the Company entered into an amended services agreement. Under the amended services agreement, components of LMC’s Chief Executive Officer’s compensation are either paid directly to him or reimbursed to LMC, in each case, based on allocations set forth in the amended services agreement, currently set at 10% for the Company but subject to adjustment on an annual basis and upon the occurrence of certain events.

The reorganization agreement with LMC provides for, among other things, provisions governing the relationship between Qurate Retail and LMC, including certain cross-indemnities. Pursuant to the services agreement, LMC provides

I-9

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

Qurate Retail with certain general and administrative services including legal, tax, accounting, treasury, information technology, cybersecurity and investor relations support. Qurate Retail reimburses LMC for direct, out-of-pocket expenses incurred by LMC in providing these services and for Qurate Retail's allocable portion of costs associated with any shared services or personnel based on an estimated percentage of time spent providing services to Qurate Retail. Under the facilities sharing agreement, LMC shares office space and related amenities at its corporate headquarters with Qurate Retail. Under these various agreements, approximately $3 million and $2 million was reimbursable to LMC for the three months ended March 31, 2024 and 2023, respectively. Qurate Retail had a cumulative tax sharing payable to LMC and Liberty Broadband in the amount of approximately $16 million as of both March 31, 2024 and December 31, 2023, included in other liabilities in the condensed consolidated balance sheets. 

Zulily, LLC (“Zulily”) was a wholly owned subsidiary of Qurate Retail until its divestiture on May 24, 2023. Qurate Retail recognized a loss on the divestiture of $64 million in the second quarter of 2023.  Zulily is included in Corporate and other through May 23, 2023 and is not presented as a discontinued operation as the disposition did not represent a strategic shift that had a major effect on Qurate Retail’s operations and financial results.

Included in revenue in the accompanying condensed consolidated statements of operations is $192 million for the three months ended March 31, 2023 related to Zulily. Included in net earnings (loss) in the accompanying condensed consolidated statement of operations is a loss of $35 million for the three months ended March 31, 2023 related to Zulily.

(2)   Stock-Based Compensation

The Company has granted to certain of its directors, employees and employees of its subsidiaries, restricted stock (“RSAs”), restricted stock units (“RSUs”) and options to purchase shares of the Company’s common stock (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an equity classified Award (such as stock options and RSAs) based on the grant-date fair value (“GDFV”) of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date.

Included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations are $16 million of stock-based compensation during both of the three months ended March 31, 2024 and 2023.

Qurate Retail—RSUs

During the three months ended March 31, 2024 and in connection with their employment agreements, Qurate Retail granted 3.7 million performance-based, stock-settled RSUs of Series A Qurate Retail common stock (“QRTEA”) to our President and Chief Executive Officer and 296 thousand performance-based, stock-settled RSUs of Series B Qurate Retail common stock (“QRTEB”) to our Chairman of the Board.  Such RSUs had a GDFV of $1.23 per share and $5.01 per share, respectively, and vest one year from the month of grant, subject to the satisfaction of certain performance objectives.

The following table presents the number of cash-settled RSUs granted by the Company during the three months ended March 31, 2024:

	Three months ended
	March 31, 2024
	RSUs Granted (000's)
QRTEA time-based RSUs, subsidiary employees (1)	20,945
QRTEA performance-based RSUs, subsidiary employees (2)	20,305
QRTEA performance-based RSUs, Qurate Retail employees (3)	921

(1) Grants mainly vest equally over three years.

(2) Grants vest equally over three years, subject to the satisfaction of certain performance objectives.

(3) Grants vest one year from the month of grant, subject to the satisfaction of certain performance objectives.

I-10

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

For cash-settled RSUs, the liability and compensation expense related to such awards is adjusted at the end of each reporting period based on the closing market price of QRTEA on the last trading day of the quarter.

For awards that are performance-based, performance objectives, which are subjective, are considered in determining the timing and amount of compensation expense recognized. When the satisfaction of the performance objectives becomes probable, the Company records compensation expense. The probability of satisfying the performance objectives is assessed at the end of each reporting period.

Qurate Retail—Outstanding Awards

The following tables present the number and weighted average exercise price ("WAEP") of the options to purchase Qurate Retail common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the options.

				Weighted		Aggregate
				average		intrinsic
	Series A			remaining		value
	(000's)	WAEP		life		(millions)
Options outstanding at January 1, 2024	23,530	$	7.72
Granted	—	$	—
Exercised	—	$	—
Forfeited/Cancelled	(2,849)	$	10.87
Options outstanding at March 31, 2024	20,681	$	7.29	2.5	years	$	—
Options exercisable at March 31, 2024	18,333	$	7.13	2.4	years	$	—

				Weighted		Aggregate
				average		intrinsic
	Series B			remaining		value
	(000's)	WAEP		life		(millions)
Options outstanding at January 1, 2024	723	$	12.35
Granted	—	$	—
Exercised	—	$	—
Forfeited/Cancelled	—	$	—
Options outstanding at March 31, 2024	723	$	12.35	0.6	years	$	—
Options exercisable at March 31, 2024	723	$	12.35	0.6	years	$	—

The following table presents the number and weighted average GDFV of stock-settled RSUs granted to certain officers, employees and directors of the Company.

		Weighted			Weighted
	Series A	Average		Series B	Average
	(000's)	GDFV		(000's)	GDFV
RSUs outstanding at January 1, 2024	14,691	$	3.30	353	$	5.51
Granted	3,739	$	1.23	296	$	5.01
Vested	(5,612)	$	3.73	(353)	$	4.85
Forfeited/Cancelled	(1,115)	$	2.15	—	$	—
RSUs outstanding at March 31, 2024	11,703	$	2.54	296	$	5.01

As of March 31, 2024, Qurate Retail also had 1.1 million QRTEB RSAs outstanding with a GDFV of $13.65 per share.

I-11

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

As of March 31, 2024, the total unrecognized compensation cost related to unvested Awards was approximately $90 million. Such amount will be recognized in the Company's consolidated statements of operations over a weighted average period of approximately 1.7 years.

As of March 31, 2024, Qurate Retail reserved for issuance upon exercise of outstanding stock options approximately 20.7 million shares of QRTEA and 0.7 million shares of QRTEB.

(3)   Earnings (Loss) Per Common Share

Basic earnings (loss) per common share ("EPS") is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding ("WASO") for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive.

Excluded from diluted EPS for the three months ended March 31, 2024 and 2023 are 21 million and 30 million potential common shares, respectively, because their inclusion would have been antidilutive.  

	Qurate Retail Common Stock
	Three months ended
	March 31,
	2024	2023
	number of shares in millions
Basic WASO	392	383
Potentially dilutive shares	1	1
Diluted WASO	393	384

(4)   Assets and Liabilities Measured at Fair Value

For assets and liabilities required to be reported at fair value, 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 are inputs, other than quoted market prices included within Level 1, that 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 at fair value are as follows:

	Fair Value Measurements at				Fair Value Measurements at
	March 31, 2024				December 31, 2023
			Quoted			Quoted
			prices			prices
			in active	Significant		in active	Significant
			markets for	other		markets for	other
			identical	observable		identical	observable
			assets	inputs		assets	inputs
Description	Total		(Level 1)	(Level 2)	Total	(Level 1)	(Level 2)
	amounts in millions
Cash equivalents	$	820	820	—	726	726	—
Debt	$	354	—	354	219	—	219

The majority of the Company's Level 2 financial assets and liabilities are primarily debt instruments and derivative instruments with quoted market prices that are not considered to be traded on "active markets," as defined in GAAP. The fair values for such instruments are derived from a typical model using observable market data as the significant inputs.

I-12

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

Realized and Unrealized Gains (Losses) on Financial Instruments

Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following:

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Equity securities		(2)	(3)
Exchangeable senior debentures		(5)	(31)
Other financial instruments		—	2
	$	(7)	(32)

The Company has elected to account for its exchangeable debt using the fair value option. Changes in the fair value of the exchangeable senior debentures recognized in the condensed consolidated statement of operations are primarily due to market factors primarily driven by changes in the fair value of the underlying shares into which the debt is exchangeable. The Company isolates the portion of the unrealized gain (loss) attributable to the change in the instrument specific credit risk and recognizes such amount in other comprehensive earnings (loss).  During the three months ended March 31, 2023, the Company recognized $25 million of previously unrecognized gains, which was recognized through realized and unrealized gains (losses) on financial instruments, net on the condensed consolidated statement of operations. The change in the fair value of the exchangeable senior debentures attributable to changes in the instrument specific credit risk was a loss of $129 million and a gain of $169 million for the three months ended March 31, 2024 and 2023, respectively.  The cumulative change was a gain of $410 million as of March 31, 2024, net of the recognition of previously unrecognized gains and losses.

(5)   Intangible Assets

Goodwill

Changes in the carrying amount of goodwill are as follows:

	QxH		QVC Int'l	CBI	Total
	amounts in millions
Balance at January 1, 2024	$	2,367	785	12	3,164
Foreign currency translation adjustments		—	(23)	—	(23)
Balance at March 31, 2024	$	2,367	762	12	3,141

Intangible Assets Subject to Amortization

Amortization expense for intangible assets with finite useful lives was $77 million and $74 million for the three months ended March 31, 2024 and 2023, respectively. Based on its amortizable intangible assets as of March 31, 2024, Qurate Retail expects that amortization expense will be as follows for the next five years (amounts in millions):

Remainder of 2024	$	215
2025	$	171
2026	$	103
2027	$	8
2028	$	—

I-13

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

(6)   Long-Term Debt

Debt is summarized as follows:

	Outstanding
	principal at		Carrying value
	March 31, 2024		March 31, 2024		December 31, 2023
	amounts in millions
Corporate level debentures
8.5% Senior Debentures due 2029	$	287		286	286
8.25% Senior Debentures due 2030		505		503	503
4% Exchangeable Senior Debentures due 2029		352		162	101
3.75% Exchangeable Senior Debentures due 2030		428		192	118
Subsidiary level notes and facilities
QVC 4.85% Senior Secured Notes due 2024		—		—	423
QVC 4.45% Senior Secured Notes due 2025		586		585	585
QVC 4.75% Senior Secured Notes due 2027		575		575	575
QVC 4.375% Senior Secured Notes due 2028		500		500	500
QVC 5.45% Senior Secured Notes due 2034		400		399	399
QVC 5.95% Senior Secured Notes due 2043		300		300	300
QVC 6.375% Senior Secured Notes due 2067		225		225	225
QVC 6.25% Senior Secured Notes due 2068		500		500	500
QVC Senior Secured Credit Facility		1,295		1,295	857
Deferred loan costs		—		(31)	(32)
Total consolidated Qurate Retail debt	$	5,953		5,491	5,340
Less current classification				(939)	(642)
Total long-term debt			$	4,552	4,698

QVC Senior Secured Notes

As of March 31, 2024, the remaining outstanding 4.45% Senior Secured Notes due 2025 are classified within the current portion of long-term debt as they mature in less than one year.

On February 27, 2024, QVC delivered a notice of redemption to the trustee and holders of QVC’s 4.85% Senior Secured Notes due 2024 (“2024 Notes”).  Pursuant to the notice of redemption, QVC redeemed the remaining outstanding 2024 Notes in full on March 28, 2024.

The senior secured notes permit QVC to make unlimited dividends or other restricted payments so long as QVC is not in default under the indentures governing the senior secured notes and QVC’s consolidated leverage ratio is not greater than 3.5 to 1.0 (the “senior secured notes leverage basket”). As of March 31, 2024, QVC’s consolidated leverage ratio (as calculated under QVC’s senior secured notes) was greater than 3.5 to 1.0 and as a result QVC is restricted in its ability to make dividends or other restricted payments under the senior secured notes.  Although QVC will not be able to make unlimited dividends or other restricted payments under the senior secured notes leverage basket, QVC will continue to be permitted to make unlimited dividends to parent entities of QVC to service the principal and interest when due in respect of indebtedness of such parent entities (so long as there is no default under the indentures governing QVC’s senior secured notes) and permitted to make certain restricted payments to Qurate Retail under an intercompany tax sharing agreement in respect of certain tax obligations of QVC and its subsidiaries.

QVC Senior Secured Credit Facility

On October 27, 2021, QVC amended and restated its latest credit agreement (as amended and restated, the “Fifth Amended and Restated Credit Agreement”) and refinanced QVC’s existing bank credit facility by entering into the Fifth

I-14

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

Amended and Restated Credit Agreement with Zulily, CBI, and QVC Global Corporate Holdings, LLC (“QVC Global”), each a direct or indirect (or former, in the case of Zulily) wholly owned subsidiary of Qurate Retail, as borrowers (QVC, Zulily, CBI and QVC Global, collectively, the “Borrowers”), JPMorgan Chase Bank, N.A., as administrative agent, and the other parties named therein. In connection with the Zulily divestiture (see note 1), Zulily is no longer a co-borrower in the Credit Facility, and Zulily repaid its outstanding borrowings under the Fifth Amended and Restated Credit Agreement using cash contributed from Qurate Retail, which was approximately $80 million.

The Fifth Amended and Restated Credit Agreement is a multi-currency facility providing for a $3.25 billion revolving credit facility (the “Credit Facility”), with a $450 million sub-limit for letters of credit and an alternative currency revolving sub-limit equal to 50% of the revolving commitments thereunder. The Credit Facility may be borrowed by any Borrower, with each Borrower jointly and severally liable for the outstanding borrowings. Borrowings under the Fifth Amended and Restated Credit Agreement bear interest at either the alternate base rate (such rate, the “ABR Rate”) or a London Inter-bank Offered Rate (“LIBOR”)-based rate (or the applicable non-U.S. Dollar equivalent rate) (such rate, the “Term Benchmark/RFR Rate”) at the applicable Borrower’s election in each case plus a margin. Borrowings that are ABR Rate loans will bear interest at a per annum rate equal to the base rate plus a margin that varies between 0.25% and 0.625% depending on the Borrowers’ combined ratio of consolidated total debt to consolidated EBITDA (the “consolidated leverage ratio”). Borrowings that are Term Benchmark/RFR Rate loans will bear interest at a per annum rate equal to the applicable rate plus a margin that varies between 1.25% and 1.625% depending on the Borrowers’ 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 CBI, QVC Global or any other borrower under the Credit Facility (other than QVC) is removed, at the election of QVC, as a borrower thereunder, all of its loans must be repaid and its letters of credit are terminated or cash collateralized. Any amounts prepaid on the Credit Facility may be reborrowed.

On June 20, 2023, QVC, QVC Global and CBI, as borrowers,  JPMorgan Chase Bank, N.A., as administrative agent, and the other parties thereto entered into an agreement whereby, in accordance with the Fifth Amended and Restated Credit Agreement, LIBOR-based rate loans denominated in U.S. dollars made on or after June 30, 2023 would be replaced with SOFR-based rate loans.  Borrowings that are Secured Overnight Financing Rate (“SOFR”)-based loans will bear interest at a per annum rate equal to the applicable SOFR rate, plus a credit spread adjustment, plus a margin that varies between 1.25% and 1.625% depending on the Borrowers’ consolidated leverage ratio.

The loans under the Credit Facility are scheduled to mature on October 27, 2026. Payment of the loans may be accelerated following certain customary events of default.

The payment and performance of the Borrowers’ obligations under the Fifth Amended and Restated Credit Agreement are guaranteed by each of QVC’s, QVC Global’s, and CBI’s Material Domestic Subsidiaries (as defined in the Fifth Amended and Restated Credit Agreement), if any, and certain other subsidiaries of any Borrower that such Borrower has chosen to provide guarantees. Further, the borrowings under the Fifth Amended and Restated Credit Agreement are secured, pari passu with QVC’s existing notes, by a pledge of all of QVC’s equity interests. The borrowings under the Fifth Amended and Restated Credit Agreement are also secured by a pledge of all of CBI’s equity interests.

The Fifth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including certain restrictions on the Borrowers 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 Borrowers’ consolidated leverage ratio.

Borrowings under the Fifth Amended and Restated Credit Agreement may be used to repay outstanding indebtedness, pay certain fees and expenses, finance working capital needs and general purposes of the Borrowers and their respective subsidiaries and make certain restricted payments and loans to the Borrowers’ respective parents and affiliates.

I-15

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

Availability under the Fifth Amended and Restated Credit Agreement at March 31, 2024 was $1,866 million.  The interest rate on the Credit Facility was 6.8% and 6.3% at March 31, 2024 and 2023, respectively.

Exchangeable Senior Debentures

The Company has elected to account for its exchangeable senior debentures using the fair value option.  Accordingly, changes in the fair value of these instruments are recognized as unrealized gains (losses) in the statements of operations. See note 4 for information related to unrealized gains (losses) on debt measured at fair value.  As of March 31, 2024 the Company’s 3.75% and 4.0% Exchangeable Debentures have been classified as current because the Company does not own shares to exchange the debentures. The Company reviews the terms of the debentures on a quarterly basis to determine whether a triggering event has occurred to require current classification of the exchangeables upon a call event.  

Fair Value of Debt

Qurate Retail estimates the fair value of its debt based on the quoted market prices for the same or similar issues or on the current rate offered to Qurate Retail for debt of the same remaining maturities (Level 2). The QVC 6.375% Senior Secured Notes due 2067 (“2067 Notes”) and the QVC 6.25% Senior Secured Notes Due 2068 (“2068 Notes”) are traded on the New York Stock Exchange, and the Company considers them to be actively traded. As such, the 2067 Notes and 2068 Notes are valued based on their trading price (Level 1). The fair value of Qurate Retail's publicly traded debt securities that are not reported at fair value in the accompanying condensed consolidated balance sheet at March 31, 2024 are as follows (amounts in millions):

Senior debentures	$	480
QVC senior secured notes	$	2,347

Due to the variable rate nature, Qurate Retail believes that the carrying amount of its other debt, not discussed above, approximated fair value at March 31, 2024.

(7)   Preferred Stock

On September 14, 2020, Qurate Retail issued its 8.0% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “Preferred Stock”). There were 13,500,000 shares of Preferred Stock authorized and 12,723,161 shares of Preferred Stock issued and outstanding at March 31, 2024. 

Priority. The Preferred Stock ranks senior to the shares of Qurate Retail common stock, with respect to dividend rights, rights of redemption and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of Qurate Retail’s affairs. Shares of Preferred Stock are not convertible into shares of Qurate Retail common stock.

Dividends. Holders of the Preferred Stock are entitled to receive quarterly cash dividends at a rate of 8.0% per annum of the liquidation price (as described below) on a cumulative basis, during the term. If declared, accrued dividends will be payable quarterly on each dividend payment date, beginning December 15, 2020 and thereafter on each March 15, June 15, September 15, and December 15 during the term (or, if such date is not a business day, the next business day after such date). If Qurate Retail fails to pay dividends or the applicable redemption price with respect to any redemption within 30 days after the applicable dividend payment or redemption date, the dividend rate will increase as provided by the Certificate of Designations for the Preferred Stock (the “Certificate of Designations”). Accrued dividends that are not paid within 30 days after the applicable dividend payment date will be added to the liquidation price until paid together with all dividends accrued thereon.

The ability of Qurate Retail to declare or pay any dividend on, or purchase, redeem, or otherwise acquire, any of its common stock or any other stock ranking on parity with the Preferred Stock will be subject to restrictions if Qurate

I-16

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

Retail does not pay all dividends and all redemption payments on the Preferred Stock, subject to certain exceptions as set forth in the Certificate of Designations.

Distributions upon Liquidation, Dissolution or Winding Up. Upon Qurate Retail’s liquidation, winding-up or dissolution, each holder of shares of the Preferred Stock will be entitled to receive, before any distribution is made to the holders of Qurate Retail common stock, an amount equal to the liquidation price plus all unpaid dividends (whether or not declared) accrued from the immediately preceding dividend payment date, subject to the prior payment of liabilities owed to Qurate Retail’s creditors and the preferential amounts to which any stock senior to the Preferred Stock is entitled. The Preferred Stock has a liquidation price equal to the sum of (i) $100, plus (ii) all accrued and unpaid dividends (whether or not declared) that have been added to the liquidation price.

Mandatory and Optional Redemption. The Preferred Stock is subject to mandatory redemption on March 15, 2031 at the liquidation price plus all unpaid dividends (whether or not declared) accrued from the most recent dividend payment date. On or after the fifth anniversary of September 14, 2020 (the “Original Issue Date”), Qurate Retail may redeem all or a portion of the outstanding shares of Preferred Stock, at the liquidation price plus all unpaid dividends (whether or not declared) accrued from the most recent dividend payment date plus, if the redemption is (x) on or after the fifth anniversary of the Original Issue Date but prior to its sixth anniversary, 4.00% of the liquidation price, (y) on or after the sixth anniversary of the Original Issue Date but prior to its seventh anniversary, 2.00% of the liquidation price and (z) on or after the seventh anniversary of the Original Issue Date, zero. Both mandatory and optional redemptions must be paid in cash.

Voting Power. Holders of the Preferred Stock will not have any voting rights or powers, except as specified in the Certificate of Designations or as required by Delaware law.

Preferred Stock Directors. So long as the aggregate liquidation price of the outstanding shares of Preferred Stock exceeds 25% of the aggregate liquidation price of the shares of Preferred Stock issued on the Original Issue Date, holders of Preferred Stock will have certain director election rights as described in the Certificate of Designations whenever dividends on shares of Preferred Stock have not been declared and paid for two consecutive dividend periods and whenever Qurate Retail fails to pay the applicable redemption price in full with respect to any redemption of the Preferred Stock or fails to make a payment with respect to the Preferred Stock in connection with a liquidation or Extraordinary Transactions (as defined in the Certificate of Designations).

Recognition. As the Preferred Stock is subject to unconditional mandatory redemption in cash and was issued in the form of a share, the Company concluded the Preferred Stock was a mandatorily redeemable financial instrument and should be classified as a liability in the condensed consolidated balance sheets. The Preferred Stock was initially recorded at its fair value, which was determined to be the liquidation preference of $100 per share. Given the liability classification of the Preferred Stock, all dividends accrued will be classified as interest expense in the condensed consolidated statements of operations. The fair value of the Preferred Stock (level 1) was $633 million as of March 31, 2024.

(8)   Commitments and Contingencies

Litigation

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 Qurate Retail 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 amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements.

I-17

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

Fire at Rocky Mount Fulfillment Center

On December 18, 2021, QVC experienced a fire at its Rocky Mount fulfillment center in North Carolina. Rocky Mount was QVC’s second-largest fulfillment center for the operating segment comprised of QVC U.S. and HSN (“QxH”) and QVC’s primary returns center for hard goods. QVC maintains property, general liability and business interruption insurance coverage. Based on provisions of QVC's insurance policies, the Company recorded insurance recoveries for fire related costs for which recovery is deemed probable.  

In June 2023, QVC agreed to a final insurance settlement with its insurance company and received all remaining proceeds related to the Rocky Mount claim. As of December 31, 2023, QVC recorded cumulative fire related costs of $439 million, which included $119 million of costs that were not reimbursable by QVC’s insurance policies. As of December 31, 2023, QVC received cumulative insurance proceeds of $660 million, and recorded net gains, representing the proceeds received in excess of recoverable losses recognized of $208 million. Of the $280 million of insurance proceeds received during the year ended December 31, 2023, $210 million represents recoveries for business interruption losses.

During the three months ended March 31, 2023, QVC received $55 million of insurance proceeds and recognized a gain of $15 million on insurance proceeds received in excess of fire losses, which was partially offset by $11 million of other fire related costs.

In February 2023, QVC sold the Rocky Mount fulfillment center to an independent third party and received cumulative net cash proceeds of $19 million as of December 31, 2023, of which $15 million was received during the three months ended March 31, 2023. QVC recognized a $13 million gain on the sale during the three months ended March 31, 2023, calculated as the difference between the aggregate consideration received and the carrying value of the property.

Project Athens

On June 27, 2022, Qurate Retail announced a five-point turnaround plan designed to stabilize and differentiate its core QVC U.S. and HSN brands and expand the Company's leadership in video streaming commerce (“Project Athens”). Project Athens main initiatives include: (i) improve customer experience and grow relationships; (ii) rigorously execute core processes; (iii) lower cost to serve; (iv) optimize the brand portfolio; and (v) build new high growth businesses.

During 2022, QVC commenced the first phase of Project Athens including actions to reduce inventory and a planned workforce reduction that was completed in February 2023. During the three months ended March 31, 2023, QVC recorded restructuring charges of $13 million. These initiatives are consistent with QVC’s strategy to operate more efficiently as it implements its turnaround plan.

Zulily Restructuring

In the first quarter of 2022, Zulily began to execute a series of transformation initiatives, beginning with the announcement of the closure of its fulfillment center in Bethlehem, Pennsylvania, and reduction in corporate workforce. These initiatives were consistent with Zulily’s strategy to operate more efficiently as it implemented its turnaround plan. Zulily recorded $4 million of restructuring charges during the three months ended March 31, 2023 related to its reduction in corporate workforce. See note 1 for a discussion regarding the Company’s divestiture of Zulily on May 24, 2023.

Gains on sale leaseback transactions

In November 2022, QVC entered into agreements to sell two properties located in Germany and the United Kingdom (“U.K.”) to an independent third party. Under the terms of the agreements, QVC received net cash proceeds of $102 million related to its German facility and $80 million related to its U.K. facility when the sale closed in January 2023. Concurrent with the sale, the Company entered into agreements to lease each of the properties back from the purchaser over an initial term of 20 years with the option to extend the terms of the property leases for up to four consecutive terms of five years. QVC recorded a gain of $69 million and $44 million related to the successful sale leaseback of the German and U.K. properties, respectively, during the first quarter of 2023 calculated as the difference between the aggregate consideration received and the carrying value of the properties. QVC accounted for the leases as operating at the close of the sale

I-18

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

leaseback transaction, leases and recorded a $42 million and $32 million right-of-use asset and operating lease liability for the German and U.K. properties, respectively.

In December 2023, QVC entered into an agreement to sell an owned and operated property in Germany to an independent third party. This property was owned as of December 31, 2023, and is included in other assets in the condensed consolidated balance sheet. Under the terms of the agreement, QVC received net cash proceeds of $6 million related to its German facility when the sale closed in February 2024. QVC recognized a $1 million gain related to the sale during the first quarter of 2024, calculated as the difference between the aggregate consideration received and the carrying value of the property. Concurrent with the sale, QVC entered into an agreement to lease a portion of the property back over 2 years and recorded an operating lease right-of-use asset and operating lease liability of $1 million.

On October 31, 2022, the Company entered into foreign currency forward contracts with an aggregate notional amount of $167 million to mitigate the foreign currency risk associated with the sale and leaseback of Germany and U.K. properties. The forwards did not qualify as cash flow hedges under GAAP. Changes in the fair value of the forwards are reflected in realized and unrealized gains (losses) on financial instruments, net in the condensed consolidated statements of operations. The contracts expired in January 2023 which resulted in a net cash settlement of $12 million.

(

(9)   Information About Qurate Retail's Operating Segments

Qurate Retail, through its ownership interests in subsidiaries and other companies, is primarily engaged in the video and online commerce industries. Qurate Retail identifies its reportable segments as (A) those operating segments that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA (as defined below) or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of Qurate Retail's annual pre-tax earnings.

The Qurate Retail chief operating decision maker primarily evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, Qurate Retail reviews nonfinancial measures such as unique website visitors, number of units shipped, conversion rates and active customers, as appropriate.

For the three months ended March 31, 2024, Qurate Retail has identified the following operating segments as its reportable segments:

● QxH –   QVC U.S. and HSN market and sell a wide variety of consumer products in the U.S., primarily by means of their televised shopping programs and via the Internet through their websites and mobile applications.

● QVC International – QVC International markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications.

● CBI –  CBI consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites.

Qurate Retail's operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies.  The accounting policies of the segments are the same as those described in the Company's Summary of Significant Accounting Policies in the 2023 10-K.

I-19

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

Performance Measures

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

		Three months ended
		March 31, 2024
			QxH	QVC Int'l	CBI	Corp and other	Total
	in millions
Home		$	589	237	189	—	1,015
Apparel			282	108	42	—	432
Beauty			239	129	—	—	368
Accessories			201	48	—	—	249
Electronics			108	15	—	—	123
Jewelry			80	33	—	—	113
Other revenue			40	2	—	—	42
Total Revenue		$	1,539	572	231	—	2,342

		Three months ended
		March 31, 2023
			QxH	QVC Int'l	CBI	Corp and other	Total
	in millions
Home		$	635	237	214	50	1,136
Apparel			295	113	45	70	523
Beauty			246	133	—	9	388
Accessories			192	51	—	50	293
Electronics			110	17	—	2	129
Jewelry			77	39	—	8	124
Other revenue			46	2	—	3	51
Total Revenue		$	1,601	592	259	192	2,644

For segment reporting purposes, Qurate Retail defines Adjusted OIBDA as revenue less cost of goods sold, operating expenses, and selling, general and administrative expenses excluding stock-based compensation and, where applicable, separately identified items impacting comparability. Qurate Retail believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, and where applicable, separately identified impairments, litigation settlements, restructuring, penalties, acquisition-related costs, fire related costs, net (including Rocky Mount inventory losses) and gains (losses) on sale leaseback transactions, that are included in the measurement of operating income (loss) pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income (loss), net earnings (loss), cash flows provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Qurate Retail generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.

I-20

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(unaudited)

Adjusted OIBDA is summarized as follows:

	Three months ended March 31,
		2024	2023
	amounts in millions
QxH	$	185	139
QVC International		75	72
CBI		6	4
Corporate and other		(7)	(36)
Consolidated Qurate Retail	$	259	179

Other Information

	March 31, 2024
	Total assets		Capital expenditures
	amounts in millions
QxH	$	7,840	22
QVC International		1,793	10
CBI		555	8
Corporate and other		793	—
Consolidated Qurate Retail	$	10,981	40

The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes:

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Adjusted OIBDA	$	259	179
Stock-based compensation		(16)	(16)
Depreciation and amortization		(99)	(100)
Gain on sale of assets and sale leaseback transactions		1	113
Operating income (loss)	$	145	176
Interest expense		(117)	(94)
Interest and dividend income		12	11
Realized and unrealized gains (losses) on financial instruments, net		(7)	(32)
Other, net		(2)	4
Earnings (loss) before income taxes	$	31	65

I-21

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 strategies; revenue growth at QVC, Inc. ("QVC"); our projected sources and uses of cash; and fluctuations in interest rates and foreign currency exchange rates. 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:

● 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 to our businesses' websites and our ability to convert visitors into customers or contributors;

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

● our future financial performance, including availability, terms, deployment of capital and our level of indebtedness;

● 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 businesses;

● 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, including our increased reliance on social media platforms as a marketing tool;

● domestic and international economic and business conditions and industry trends, including the impact of Brexit (as defined below) and the impact of inflation and increased labor costs;

● increases in market interest rates;

● changes in the trade policy and trade relations with China;

● consumer spending levels, including the availability and amount of individual consumer debt and customer credit losses;

● system interruption and the lack of integration and redundancy in the systems and infrastructures of our businesses;

● advertising spending levels;

● 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;

● rapid technological changes;

● failure to protect the security of personal information, including as a result of cybersecurity threats and cybersecurity incidents, 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;

● natural disasters, public health crises (including COVID-19 and its variants or future pandemics or epidemics), political crises, and other catastrophic events or other events outside of our control, including climate change;

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

● failure to successfully implement Project Athens (defined below); and

● fluctuations in foreign currency exchange rates.

I-22

For additional risk factors, please see Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 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 2023 10-K.

The information herein relates to Qurate Retail, Inc. and its controlled subsidiaries (collectively “Qurate Retail,” the “Company,” “Consolidated Qurate Retail,” “us,” “we” or “our” unless the context otherwise requires).

Overview

We own controlling interests in video and online commerce companies. Our largest businesses and reportable segments are our operating segment comprised of QVC U.S. and HSN, Inc. (“QxH”) and QVC International. QVC markets and sells a wide variety of consumer products in the United States (“U.S.”) and several foreign countries via highly engaging video-rich, interactive shopping experiences, primarily by means of its televised shopping programs and the Internet through its domestic and international websites and mobile applications. Cornerstone Brands, Inc. (“CBI”), consists of a portfolio of aspirational home and apparel brands, and is a reportable segment.

Our “Corporate and other” category includes corporate activity along with various cost method investments. Prior to the divesture of Zulily, LLC (“Zulily”) described below, Zulily’s results were reported in Corporate and other.

Zulily was a wholly owned subsidiary of Qurate Retail until its divestiture on May 24, 2023. Qurate Retail recognized a loss on the divestiture of $64 million in the second quarter of 2023.  Zulily is included in Corporate and other through May 23, 2023 and is not presented as a discontinued operation as the disposition did not represent a strategic shift that had a major effect on Qurate Retail’s operations and financial results.

Included in revenue in the accompanying condensed consolidated statements of operations is $192 million for the three months ended March 31, 2023 related to Zulily. Included in net earnings (loss) in the accompanying condensed consolidated statement of operations is a loss of $35 million for the three months ended March 31, 2023 related to Zulily.

On June 27, 2022, Qurate Retail announced a five-point turnaround plan designed to stabilize and differentiate its core QVC U.S. and HSN brands and expand the Company's leadership in video streaming commerce (“Project Athens”). Project Athens main initiatives include: (i) improve customer experience and grow relationships; (ii) rigorously execute core processes; (iii) lower cost to serve; (iv) optimize the brand portfolio; and (v) build new high growth businesses.

Improve Customer Experience and Grow Relationships. Qurate Retail is focused on rebuilding stronger connections with our customers. In order to improve customer experience and grow relationships, Qurate Retail is working to optimize programming using advanced analytics to align product offerings, promotions and airtime with customer preferences. In addition, we expect to invest in infrastructure which will endeavor to improve the customer's order to delivery experience by reducing shipping time and improving shipment tracking visibility. We will continue to focus on customer loyalty through providing customers with a more personalized experience.

Rigorously execute core processes. Qurate Retail is enhancing its core processes to deliver the human story telling experience behind a product while also sharing a clear and compelling value proposition. In order to rigorously execute core processes, Qurate Retail will optimize pricing and assortment by investing in enhanced Information Technology systems that will support real-time pricing and promotion adjustments at an item level. We will also focus on growing our private label brands to drive revenue and margin at productive scale.

Lower cost to serve. Qurate Retail is right sizing its cost base to improve profitability and cash generation. In order to lower cost to serve, Qurate Retail will enhance review of spending to identify cost savings opportunities and opportunities to create new operational efficiencies, through end-to-end product and process reviews, and leveraging

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technology and process automation. Additionally, we will improve product margin through lower fulfillment costs, freight optimization and higher productivity.

Optimize the brand portfolio. Qurate Retail divested Zulily in the second quarter of 2023, consistent with its goal of optimizing the brand portfolio. Qurate Retail is exploring untapped opportunities to maximize brand value.

Build new high growth businesses. Finally, Qurate Retail is focused on expanding in the video streaming shopping market. In order to build new high growth businesses, Qurate Retail expects to expand streaming viewership by improving the current streaming experience with enhanced video and navigation and seamless transactions. Additionally, we are shaping the future streaming experience with exclusive content, program and deal concepts. We are also building a next generation shopping app featuring vendors with self-made content.

During 2022, QVC commenced the first phase of Project Athens, including actions to reduce inventory and a planned workforce reduction that was completed in February 2023. QVC recorded restructuring charges of $13 million during the three months ended March 31, 2023. These initiatives are consistent with QVC’s strategy to operate more efficiently as it implements its turnaround plan.

QVC’s future net revenue will depend on its ability to grow through digital platforms, retain and grow revenue from existing customers, and attract new 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 current economic uncertainty in various regions of the world in which our subsidiaries and affiliates operate could adversely affect demand for our products and services since a substantial portion of our revenue is derived from discretionary spending by individuals, which typically falls during times of economic instability. Global financial markets may experience disruptions, including increased volatility and diminished liquidity and credit availability. If economic and financial market conditions in the U.S. or other key markets, including Japan and Europe, continue to be uncertain or deteriorate, our customers may respond by suspending, delaying or reducing their discretionary spending. A suspension, delay or reduction in discretionary spending could adversely affect revenue. Accordingly, our ability to increase or maintain revenue and earnings could be adversely affected to the extent that relevant economic environments decline. Such weak economic conditions may also inhibit our expansion into new European and other markets. We currently are unable to predict the extent of any of these potential adverse effects.

The Company has continued to see inflationary pressures during the period including higher wages and merchandise costs consistent with inflation experienced by the global economy. If these pressures persist, inflated costs may result in certain increased costs outpacing our pricing power in the near term.

On December 18, 2021, QVC experienced a fire at its Rocky Mount, Inc. fulfillment center in North Carolina. Rocky Mount was QVC’s second-largest fulfillment center, processing approximately 25% to 30% of volume for QVC U.S., and also served as QVC U.S.’s primary returns center for hard goods. The building was significantly damaged as a result of the fire and related smoke and did not reopen. QVC took steps to mitigate disruption to operations including diverting inbound orders, leveraging its existing fulfillment centers and supplementing these facilities with short-term leased space as needed. QVC sold the property in February 2023 and received cumulative net cash proceeds of $19 million as of December 31, 2023 of which $15 million was received during the three months ended March 31, 2023. QVC assessed its network footprint and is making investments to expand capacity and increase throughput as a result of the loss of the Rocky Mount fulfillment center.

Based on the provisions of QVC’s insurance policies certain fire related costs were recoverable.  In June 2023, QVC agreed to a final insurance settlement with its insurance company and received all remaining proceeds related to the Rocky Mount claim. As of December 31, 2023, QVC recorded cumulative fire related costs of $439 million which included $119 million of costs that were not reimbursable by QVC’s insurance policies. As of December 31, 2023, QVC received cumulative insurance proceeds of $660 million and recorded net gains, representing the proceeds received in excess of

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recoverable losses recognized of $208 million. Of the $280 million of insurance proceeds received during the year ended December 31, 2023, $210 million represents recoveries for business interruption losses.  

In November 2022, QVC International entered into agreements to sell two properties located in Germany and the United Kingdom (“U.K.”) to an independent third party. Under the terms of the agreements, QVC received net cash proceeds of $102 million related to its German facility and $80 million related to its U.K. facility when the sale closed in January 2023. Concurrent with the sale, QVC entered into agreements to lease each of the properties back from the purchaser over an initial term of 20 years with the option to extend the terms of the property leases for up to four consecutive terms of five years. QVC recognized a $69 million and $44 million gain related to the successful sale leaseback of the German and U.K. properties, respectively, during the first quarter of 2023 calculated as the difference between the aggregate consideration received and the carrying value of the properties. The Company accounted for the leases as operating leases and recorded a $42 million and $32 million right-of-use asset and operating lease liability for the German and U.K. properties, respectively.

In December 2023, QVC entered into an agreement to sell an owned and operated property in Germany to an independent third party. This property was owned as of December 31, 2023, and is included in other assets in the condensed consolidated balance sheet. Under the terms of the agreement, QVC received net cash proceeds of $6 million related to its German facility when the sale closed in February 2024. QVC recognized a $1 million gain related to the sale during the first quarter of 2024, calculated as the difference between the aggregate consideration received and the carrying value of the property. Concurrent with the sale, QVC entered into an agreement to lease a portion of the property back over 2 years and recorded an operating lease right-of-use asset and operating lease liability of $1 million.

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Results of Operations—Consolidated

General.    We provide in the tables below information regarding our consolidated Operating Results and Other Income and Expense, as well as information regarding the contribution to those items from our principal reporting segments. The "Corporate and other" category consists of those assets or businesses which we do not disclose separately. For a more detailed discussion and analysis of the financial results of the principal reporting segments, see "Results of Operations—Businesses" below.

Operating Results

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Revenue
QxH	$	1,539	1,601
QVC International		572	592
CBI		231	259
Corporate and other		—	192
Consolidated Qurate Retail	$	2,342	2,644
Operating Income (Loss)
QxH	$	94	74
QVC International		63	156
CBI		(3)	(2)
Corporate and other		(9)	(52)
Consolidated Qurate Retail	$	145	176
Adjusted OIBDA
QxH	$	185	139
QVC International		75	72
CBI		6	4
Corporate and other		(7)	(36)
Consolidated Qurate Retail	$	259	179

Revenue.    Consolidated Qurate Retail revenue decreased 11.4% or $302 million for the three months ended March 31, 2024, as compared to the corresponding period in the prior year.  The decrease in the three months ended March 31, 2024 was due to decreased revenue in the Corporate and other segment of $192 million, decreased revenue at QxH of $62 million, decreased revenue at CBI of $28 million, and decreased revenue at QVC International of $20 million, compared to the same period in the prior year. The decrease in Corporate and other revenue was due to the divestiture of Zulily in the prior year. See "Results of Operations—Businesses" below for a more complete discussion of the results of operations of QVC and CBI.

Stock-based compensation.    Stock-based compensation includes compensation primarily related to options, restricted stock awards and restricted stock units for shares of our common stock that are granted to certain of our officers and employees.

We recorded $16 million of stock-based compensation for both of the three months ended March 31, 2024 and 2023.  As of March 31, 2024, the total unrecognized compensation cost related to unvested Qurate Retail equity awards was approximately $90 million. Such amount will be recognized in our condensed consolidated statements of operations over a weighted average period of approximately 1.7 years.  

Operating income.    Our consolidated operating income decreased $31 million for the three months ended March 31, 2024, as compared to the corresponding period in the prior year. The decrease in operating income for the three months ended March 31, 2024 was primarily due to a decrease in operating income at QVC International of $93 million, and an increase in operating losses at CBI of $1 million, partially offset by a decrease in operating losses at the Corporate and other segment of $43 million, and an increase in operating income at QxH of $20 million, compared to the

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corresponding period in the prior year. Operating loss in the Corporate and other segment decreased for the three months ended March 31, 2024, as compared to the corresponding period in the prior year, primarily related to the divestiture of Zulily in the prior year. See "Results of Operations—Businesses" below for a more complete discussion of the results of operations of QVC and CBI.

Adjusted OIBDA.    To provide investors with additional information regarding our financial results, we also disclose Adjusted OIBDA, which is a non-GAAP financial measure. We define Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, and where applicable, separately identified impairments, litigation settlements, restructuring, penalties, acquisition-related costs, fire related costs, net (including Rocky Mount inventory losses), and (gains) losses on sale leaseback transactions. Our chief operating decision maker and management team use this measure of performance in conjunction with other measures to evaluate our businesses and make decisions about allocating resources among our businesses. We believe this is an important indicator of the operational strength and performance of our businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows us to view operating results, perform analytical comparisons and benchmarking between 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 earnings (loss), cash flows provided by operating activities and other measures of financial performance prepared in accordance with U.S. generally accepted accounting principles.

The following table provides a reconciliation of Operating income (loss) to Adjusted OIBDA:

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Operating income (loss)	$	145	176
Depreciation and amortization		99	100
Stock-based compensation		16	16
Gain on sale of assets and leaseback transactions		(1)	(113)
Adjusted OIBDA	$	259	179

Consolidated Adjusted OIBDA increased 44.7% or $80 million for the three months ended March 31, 2024, as compared to the corresponding period in the prior year. The increase in Adjusted OIBDA for the three months ended March 31, 2024 was primarily due to an increase at QxH of $46 million, a decrease in Adjusted OIBDA losses at Corporate and other of $29 million, an increase at QVC International of $3 million, and an increase at CBI of $2 million, compared to the corresponding period in the prior year.  The change in the Corporate and other segment for the three months ended March 31, 2024 was primarily due to the divestiture of Zulily in the prior year. See "Results of Operations—Businesses" below for a more complete discussion of the results of operations of QVC and CBI.

Other Income and Expense

Components of Other income (expense) are presented in the table below.

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Interest expense	$	(117)	(94)
Interest and dividend income		12	11
Realized and unrealized gains (losses) on financial instruments, net		(7)	(32)
Other, net		(2)	4
Other income (expense)	$	(114)	(111)

Interest expense.    Interest expense increased $23 million for the three months ended March 31, 2024, as compared to the corresponding period in the prior year.  The increase in interest expense for the three months ended March 31, 2024,

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compared to the same period in the prior year, is due to the reversal of interest expense related to the settlement of state income tax reserves at QVC during the prior year.  

Interest and dividend income. Interest and dividend income remained relatively flat for the three months ended March 31, 2024, compared to the same period in the prior year.  

Realized and unrealized gains (losses) on financial instruments, net.    Realized and unrealized gains (losses) on financial instruments, net are comprised of changes in the fair value of the following:

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Equity securities		(2)	(3)
Exchangeable senior debentures		(5)	(31)
Other financial instruments		—	2
	$	(7)	(32)

The changes in realized and unrealized gains (losses) on financial instruments, net are due to market activity in the applicable period related to the financial instruments that are marked to market on a periodic basis. The decrease in realized and unrealized losses for the three months ended March 31, 2024, compared to the corresponding period in the prior year, was primarily driven by a decrease in unrealized losses on the exchangeable senior debentures driven by decreases in stock prices of the securities underlying the debentures compared to the prior year. The prior year was also impacted by a gain of $15 million due to the extinguishment of the Company’s 1.75% Exchangeable Senior Debentures due 2046.

Other, net. Other, net income decreased $6 million for the three months ended March 31, 2024, compared to the corresponding period in the prior year. The decrease for the three months ended March 31, 2024, compared to the same period in the prior year, was primarily the result of a decrease in tax sharing benefits compared to the prior year, partially offset by a decrease in foreign exchange losses compared to the prior year.

Income taxes. During the three months ended March 31, 2024 and 2023, we had earnings before income taxes of $31 million and $65 million, respectively, and income tax expense of $23 million and $32 million, respectively.  Income tax expense was higher than the U.S. statutory tax rate of 21% during the three months ended March 31, 2024, primarily due to non-deductible stock compensation and non-deductible interest expense related to the 8.0% Series A Cumulative Redeemable Preferred Stock (“Preferred Stock”). Income tax expense was higher than the U.S. statutory tax rate of 21% during the three months ended March 31, 2023 due to foreign income tax expense and non-deductible interest on preferred stock, partially offset by state income tax benefit.

Net earnings. We had net earnings of $8 million and $33 million for the three months ended March 31, 2024 and 2023, respectively. The change in net earnings (loss) was the result of the above-described fluctuations in our revenue, expenses and other gains and losses.

Material Changes in Financial Condition

As of March 31, 2024, substantially all of our cash and cash equivalents are invested in U.S. Treasury securities, securities of other government agencies, AAA rated money market funds and other highly rated financial and corporate debt instruments.

The following are potential sources of liquidity: available cash balances, equity issuances, dividend and interest receipts, proceeds from asset sales, debt (including availability under QVC’s bank credit facilities (the “Credit Facility”), as discussed in note 6 to the accompanying condensed consolidated financial statements), and cash generated by the operating activities of our wholly-owned subsidiaries.  Cash generated by the operating activities of our subsidiaries is only a source of liquidity to the extent such cash exceeds the working capital needs of the subsidiaries and is not otherwise restricted.  For example, under QVC’s bond indentures, it is able to pay dividends or make other restricted payments if it is not in default on its senior secured notes and its consolidated leverage ratio is no greater than 3.5 to 1.0.  In addition, under the Credit Facility QVC is able to pay dividends or make other restricted payments if it is not in default on the Credit Facility and the consolidated leverage ratio of QVC, QVC Global Corporate Holdings, LLC and CBI is no greater than 4.0

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to 1.0.  Further, under QVC’s bond indentures and the Credit Facility, unlimited dividends are permitted to service the debt of parent entities of QVC so long as there is no default (i.e., no leverage test is needed).

As of March 31, 2024, QVC’s consolidated leverage ratio (as calculated under QVC’s senior secured notes) was greater than 3.5 to 1.0 and as a result QVC is restricted in its ability to make dividends or other restricted payments under the senior secured notes. Although QVC will not be able to make unlimited dividends or other restricted payments under the senior secured notes leverage basket, QVC will continue to be permitted to make unlimited dividends to parent entities of QVC to service the principal and interest when due in respect of indebtedness of such parent entities (so long as there is no default under the indentures governing QVC’s senior secured notes) and permitted to make certain restricted payments to Qurate Retail under an intercompany tax sharing agreement in respect of certain tax obligations of QVC and its subsidiaries.

As of March 31, 2024, Qurate Retail's liquidity position included the following:

	Cash and cash
	equivalents
	amounts in millions
QVC	$	311
CBI		79
Corporate		712
Total Qurate Retail	$	1,102

		Borrowing capacity
		amount in millions
Credit Facility	$	1,866

To the extent that the Company recognizes any taxable gains from the sale of assets we may incur tax expense and be required to make tax payments, thereby reducing any cash proceeds. As of March 31, 2024, the Company had approximately $192 million of cash, cash equivalents and restricted cash held in foreign subsidiaries that is available for domestic purposes with no significant tax consequences upon repatriation to the U.S. QVC accrues foreign taxes on the unremitted earnings of its international subsidiaries. Approximately 68% of QVC’s foreign cash balance was that of QVC-Japan (as defined below). QVC owns 60% of QVC-Japan and shares all profits and losses with the 40% minority interest holder, Mitsui & Co., LTD (“Mitsui”).  

Additionally, we believe our businesses will generate positive cash flow from operations during 2024.

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Cash Flow Information
Net cash provided (used) by operating activities	$	26	16
Net cash provided (used) by investing activities	$	(31)	112
Net cash provided (used) by financing activities	$	(2)	(122)

During the three months ended March 31, 2024, Qurate Retail's primary uses of cash were capital expenditures of $40 million and dividends paid to noncontrolling interest of $11 million, partially offset by net debt borrowings of $15 million.

The projected uses of Qurate Retail cash for the remainder of 2024 are continued capital improvement spending between $185 million and $200 million, debt service payments (including approximately $217 million for interest payments on outstanding debt), repayment of debt, and payment of dividends to the holders of the Preferred Stock. We also may be required to make net payments of income tax liabilities to settle items under discussion with tax authorities.

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We expect that cash on hand and cash provided by operating activities and borrowing capacity in future periods will be sufficient to fund projected uses of cash.  

The Company may from time to time repurchase any level of its outstanding debt through open market purchases, privately negotiated transactions, redemptions, tender offers or otherwise. Repurchases or retirement of debt, if any, will depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

Qurate Retail and its subsidiaries were in compliance with all debt covenants at March 31, 2024.

On February 27, 2024, QVC delivered a notice of redemption to the trustee and holders of QVC’s 4.85% Senior Secured Notes due 2024 (“2024 Notes”).  Pursuant to the notice of redemption, QVC redeemed the remaining outstanding 2024 Notes in full on March 28, 2024.

Results of Operations—Businesses

QVC.  QVC 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 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, QVC 2, QVC 3, HSN and HSN2. QVC’s U.S. programming is also available on QVC.com and HSN.com, which we refer to as “QVC’s U.S. websites”; virtual multichannel video programming distributors (including Hulu + Live TV, DirecTV Stream, and YouTube TV); applications via streaming video; Facebook Live, Roku, Apple TV, Amazon Fire, Xfinity Flex and Samsung TV Plus; mobile applications; social media pages and over-the-air broadcasters.

QVC’s digital platforms enable consumers to purchase goods offered on its televised programming, along with a wide assortment of products that are available only on QVC’s U.S. websites. QVC.com and its other digital platforms (including its mobile applications, social media pages and others) are natural extensions of its business model, allowing customers to engage in its shopping experience wherever they are, with live or on-demand content customized to the device they are using. In addition to offering video content, QVC’s 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.

QVC’s international 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, its 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., QVC’s international businesses also engage customers via websites, mobile applications, and social media pages. QVC’s international business employs product sourcing teams who select products tailored to the interests of each local market.

QVC's Japanese operations (“QVC-Japan”) are conducted through a joint venture with Mitsui. QVC-Japan is owned 60% by QVC and 40% by Mitsui. QVC and Mitsui share in all profits and losses based on their respective ownership interests. During the three months ended March 31, 2024 and 2023, QVC-Japan paid dividends to Mitsui of $11 million and $12 million, respectively.

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QVC's operating results were as follows:

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Net revenue	$	2,111	2,193
Cost of goods sold (excluding depreciation, amortization and Rocky Mount inventory losses shown below)		(1,373)	(1,488)
Operating expenses		(170)	(178)
Selling, general and administrative ("SG&A") expenses (excluding stock-based compensation)		(308)	(316)
Adjusted OIBDA		260	211
Restructuring, penalties and fire related (costs), net of recoveries (including Rocky Mount inventory losses)		—	4
Gain on sale of assets and sale leaseback transactions		1	113
Stock-based compensation		(12)	(9)
Depreciation and amortization		(92)	(89)
Operating income	$	157	230

Net revenue was generated in the following geographical areas:

	Three months ended
	March 31,
	2024		2023
	amounts in millions
QxH	$	1,539		1,601
QVC International		572		592
Consolidated QVC	$	2,111		2,193

QVC's consolidated net revenue decreased 3.7% for the three months ended March 31, 2024, as compared to the corresponding period in the prior year. The three month decrease in net revenue is primarily due to a 2.0% decrease in average selling price per unit ("ASP") primarily driven by QVC International and to a lesser extent QxH, and a 1.5% decrease in units shipped driven by QxH, partially offset by QVC International. The decrease was also related to $17 million in unfavorable foreign exchange rates. These decreases to net revenue were partially offset by a $27 million decrease in estimated product returns primarily at QxH and to a lesser extent at QVC International.

During the three months ended March 31, 2024 and 2023, 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 describing QVC’s operating results, the term currency exchange rates refers to the currency exchange rates QVC uses to convert the operating results for all countries where the functional currency is not the U.S. Dollar. QVC calculates the effect of changes in currency exchange rates as the difference between current period activity translated using the prior period's currency exchange rates. QVC refers to the results of this calculation as the impact of currency exchange rate fluctuations. Constant currency operating results refers to operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand QVC’s underlying performance without the effects of currency exchange rate fluctuations.

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

	Three months ended
	March 31, 2024
	U.S. Dollars		Foreign Currency Exchange Impact		Constant Currency
QxH	(3.8)	%	—	%	(3.8)	%
QVC International	(3.4)	%	(2.9)	%	(0.5)	%

The decrease in QxH net revenue for the three months ended March 31, 2024 was primarily due to 4.0% decrease in units shipped, and a 0.5% decrease in ASP. These declines were partially offset by a $22 million decrease in estimated product returns. For the three months ended March 31, 2024, QxH experienced shipped sales growth in jewelry and accessories, with declines in all other categories.

QVC International’s net revenue decline in constant currency for the three months ended March 31, 2024 was primarily due to a 4.7% decrease in ASP across all markets. This decrease was partially offset by a 3.9% increase in units shipped primarily driven by the U.K. and Japan partially offset by Italy. For the three months ended March 31, 2024, QVC International experienced shipped sales growth in constant currency in home with declines in all other product categories.

QVC's cost of goods sold as a percentage of net revenue was 65.0% and 67.9% for the three months ended March 31, 2024 and 2023, respectively. The decrease in cost of goods sold as a percentage of revenue for the three months ended March 31, 2024 is primarily due to product margin improvement and lower warehouse costs across both segments and lower freight costs at QxH. The product margin improvement for the three months ended March 31, 2024 was driven by lower product costs and less inventory liquidation in the current period.

QVC's operating expenses are principally comprised of commissions, order processing and customer service expenses, credit card processing fees and telecommunications expenses. Operating expenses were 8.1% for each of the three months ended March 31, 2024 and 2023.

QVC's SG&A expenses (excluding stock-based compensation) include personnel, information technology, provision for doubtful accounts, production costs, and marketing and advertising expenses. Such expenses decreased $8 million and increased slightly as a percentage of net revenue for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. The decrease in expenses was driven by a $17 million decrease in consulting expenses primarily at QxH and to a lesser extent decreases in non-income related taxes, building maintenance costs and favorability from foreign exchange rates. These decreases were partially offset by a $17 million increase in marketing costs at QxH. The decrease in consulting expenses related to investments in Project Athens made in the prior year.

QVC recorded a gain of $4 million for the three months ended March 31, 2023, related to a $15 million gain on insurance proceeds received in excess of fire losses and a $13 million gain on the sale of the Rocky Mount property partially offset by $13 million of restructuring costs related to workforce reduction and $11 million of other fire related costs. Fire related costs, net included expenses directly related to the Rocky Mount fulfillment center fire net of expected and received insurance recoveries and gain on the sale of the Rocky Mount property. Expenses indirectly related to the Rocky Mount fulfillment center fire, including operational inefficiencies, were primarily included in cost of goods sold.

QVC recorded a $1 million gain on sale for the three months ended March 31, 2024 related to the sale leaseback of a property in Germany. QVC recorded $113 million of gains on sale leaseback transactions for the three months ended March 31, 2023 primarily related to the sale leaseback of two properties located in Germany and the U.K.

Stock-based compensation includes compensation related to options and restricted stock units granted to certain officers and employees. QVC recorded $12 million and $9 million for the three months ended March 31, 2024 and 2023, respectively. The increase in stock compensation expense for the three months ended March 31, 2024 is primarily related to new awards granted during the three months ended March 31, 2024.

Depreciation and amortization increased $3 million for the three months ended March 31, 2024, and included $16 million of acquisition related amortization for each of the three months ended March 31, 2024 and 2023. The increase for

I-32

the three months ended March 31, 2024 was primarily due to software additions including an enhancement to QVC’s Enterprise Resource Planning system that was placed into service in the second quarter of 2023, partially offset by a decrease in channel placement amortization and related expenses due to adjustments recognized related to lower subscriber counts and decreased property and equipment amortization primarily due to assets that are fully depreciated in the current period.

CBI.  CBI consists of a portfolio of aspirational home and apparel brands.  The home brands are comprised of Ballard Designs, Frontgate, and Grandin Road, while Garnet Hill focuses primarily on apparel and accessories and is categorized as an apparel brand. There are also 33 retail and outlet stores located throughout the U.S., primarily comprised of Ballard Designs and Frontgate stores.

CBI's stand-alone operating results for the three months ended March 31, 2024 and 2023 were as follows:

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Net revenue	$	231	259
Costs of goods sold		(138)	(165)
Operating expenses		(10)	(10)
SG&A expenses (excluding stock-based compensation)		(77)	(80)
Adjusted OIBDA		6	4
Stock-based compensation		(2)	(1)
Depreciation and amortization		(7)	(5)
Operating income (loss)	$	(3)	(2)

CBI's consolidated net revenue decreased 10.8% for the three months ended March 31, 2024, as compared to the corresponding period in the prior year. The decrease in net revenue for the three months ended March 31, 2024 was the result of a decrease in ASP of 7% related to a product mix shift within the home category to lower priced items, and a decrease in units shipped of 5% compared to the same period in the prior year. The decrease in units shipped was due to softness across home categories and the apparel segment.

CBI's cost of goods sold as a percentage of net revenue was 59.7% and 63.7% for the three months ended March 31, 2024 and 2023, respectively, primarily due to lower supply chain costs.  

Operating expenses are principally comprised of credit card processing fees and customer service expenses, which are variable expenses that support sales activity.  For the three months ended March 31, 2024, operating expenses remained flat compared to the corresponding period in the prior year.  

CBI’s SG&A expenses (excluding stock-based compensation) include print, digital and retail marketing. For the three months ended March 31, 2024, as a percentage of net revenue, these expenses increased from 30.9% to 33.3%, primarily attributable to lower revenue compared to the prior year, as discussed above.

CBI’s stock-based compensation expense increased $1 million for the three months ended March 31, 2024, compared to the corresponding period in the prior year, primarily due to more stock awards issued and an increase in the stock price compared to the prior year.

CBI’s total depreciation and amortization expense increased $2 million for the three months ended March 31, 2024, as compared to the corresponding period in the prior year, primarily due to increased capital investments, primarily in retail stores and technology.

I-33

Item 3.   Quantitative and Qualitative Disclosures about Market Risk.

We are exposed to market risk in the normal course of business due to our ongoing investing and financial activities and the conduct of operations by our 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. We have established policies, procedures and internal processes governing our management of market risks and the use of financial instruments to manage our exposure to such risks.

We are exposed to changes in interest rates primarily as a result of our borrowing and investment activities, which include investments in fixed and floating rate debt instruments and borrowings used to maintain liquidity and to fund business operations. The nature and amount of our long-term and short-term debt are expected to vary as a result of future requirements, market conditions and other factors. We manage our exposure to interest rates by maintaining what we believe is an appropriate mix of fixed and variable rate debt. We believe this best protects us from interest rate risk. We have achieved this mix by (i) issuing fixed rate debt that we believe has a low stated interest rate and significant term to maturity, (ii) issuing variable rate debt with appropriate maturities and interest rates and (iii) entering into interest rate swap arrangements when we deem appropriate. As of March 31, 2024, our debt is comprised of the following amounts:

	Variable rate debt				Fixed rate debt
			Weighted				Weighted
	Principal		average		Principal		average
	amount		interest rate		amount		interest rate
	dollar amounts in millions
QVC	$	1,295	6.8	%	$	3,086	5.2	%
Corporate and other	$	—	—	%	$	1,572	6.1	%

Qurate Retail is exposed to foreign exchange rate fluctuations related primarily to the monetary assets and liabilities and the financial results of QVC's 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 generally 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 accumulated other comprehensive earnings (loss) as a separate component of stockholders' 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 translations) or realized upon settlement of the transactions. Cash flows from our operations in foreign countries are translated at the average rate for the period. Accordingly, Qurate Retail may experience economic loss and a negative impact on earnings and equity with respect to our holdings solely as a result of foreign currency exchange rate fluctuations. QVC's reported Adjusted OIBDA for the three months ended March 31, 2024 would have been impacted by approximately $1 million, for every 1% change in foreign currency exchange rates relative to the U.S. Dollar.

We periodically assess the effectiveness of our derivative financial instruments. With regard to interest rate swaps, we monitor the fair value of interest rate swaps as well as the effective interest rate of the interest rate swap yields, in comparison to historical interest rate trends. We believe that any losses incurred with regard to interest rate swaps would be largely offset by the effects of interest rate movements on the underlying debt facilities. These measures allow our management to evaluate the success of our use of derivative instruments and to determine when to enter into or exit from derivative instruments.

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 “Exchange Act”), 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

I-34

Executives concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024 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

There was no change in the Company’s internal control over financial reporting that occurred during the Company’s quarter ended March 31, 2024, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

I-35

PART II—OTHER INFORMATION

Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds

Share Repurchase Programs

In May 2019, the Company’s board of directors authorized the repurchase of $500 million of Qurate Retail Series A common stock (“QRTEA”) or Qurate Retail Series B common stock (“QRTEB”). In August 2021, the Company’s board of directors authorized the repurchase of $500 million of QRTEA or QRTEB.

There were no repurchases of QRTEA or QRTEB during the three months ended March 31, 2024 under the Company’s share repurchase program.

During the three months ended March 31, 2024, no shares of QRTEA and QRTEB, and 45 shares of Qurate Retail 8.0% Series A Cumulative Redeemable Preferred Stock were surrendered by our officers and employees to pay withholding taxes and other deductions in connection with the vesting of their restricted stock, restricted stock units, and options.

Item 5. Other Information

None of the Company’s directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s fiscal quarter ended March 31, 2024.

II-1

Item 6.   Exhibits

(a)   Exhibits

Listed below are the exhibits which are filed as a part of this Quarterly 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	Section 1350 Certification**
99.1	Reconciliation of Qurate Retail, Inc. Net Assets and Net Earnings to Liberty Interactive LLC Net Assets and Net Earnings**
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

II-2

SIGNATURES

Pursuant to the requirements 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.

	QURATE RETAIL, INC.
Date: May 8, 2024	By:	/s/ DAVID RAWLINSON II
		David Rawlinson II President and Chief Executive Officer
Date: May 8, 2024	By:	/s/ BRIAN J. WENDLING
		Brian J. Wendling Chief Accounting Officer and Principal Financial Officer

II-3

EX-31.1

Exhibit 31.1

CERTIFICATION

I, David Rawlinson II, certify that:

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

2.Based on my knowledge, this quarterly 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 quarterly report;

3.Based on my knowledge, the financial statements and other financial information included in this quarterly 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 quarterly report;

4.The registrant's other certifying officers 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 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 quarterly 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 quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d)disclosed in this quarterly 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 officers 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: May 8, 2024

/s/ David Rawlinson II

David Rawlinson II

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Brian J. Wendling, certify that:

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

2.Based on my knowledge, this quarterly 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 quarterly report;

3.Based on my knowledge, the financial statements and other financial information included in this quarterly 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 quarterly report;

4.The registrant's other certifying officers 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 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 quarterly 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 quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d)disclosed in this quarterly 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 officers 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: May 8, 2024

/s/ BRIAN J. WENDLING

Brian J. Wendling

Chief Accounting Officer and Principal Financial Officer

EX-32

Exhibit 32

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 Qurate Retail, Inc., a Delaware corporation (the "Company"), does hereby certify, to such officer's knowledge, that:

The Quarterly Report on Form 10-Q for the period ended March 31, 2024 (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: May 8, 2024	/s/ DAVID RAWLINSON II
	David Rawlinson II President and Chief Executive Officer
Date: May 8, 2024	/s/ BRIAN J. WENDLING
	Brian J. Wendling Chief Accounting Officer and Principal Financial 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.

EX-99.1

Exhibit 99.1

Qurate Retail, Inc.

Reconciliation of Qurate Retail, Inc. ("Qurate Retail") Net Assets and

Net Earnings to Liberty Interactive LLC ("Liberty LLC") Net Assets and Net Earnings

March 31, 2024

(unaudited)

amounts in millions

Qurate Retail Net Assets	$	351
Reconciling items:
Adjustment to reflect Cornerstone Brands, Inc. ("CBI") as an equity investment (1)		(181)
Preferred Stock liability (2)		1,272
Cash held by Qurate Retail		(248)
Other corporate net assets		23
Liberty LLC Net Assets	$	1,217
Qurate Retail Net Earnings	$	8
Reconciling items:
Adjustment to reflect CBI equity method share of (earnings) loss (1)		1
Preferred stock dividends		26
Other corporate (earnings) loss		4
Liberty LLC Net Earnings	$	39

(1) On December 29, 2017, Qurate Retail acquired the approximate remaining 62% of HSN, Inc. (which includes its televised shopping business “HSN” and its catalog retail business “CBI”) it did not already own. On December 31, 2018, Qurate Retail transferred their 100% ownership interest in HSN to QVC, Inc. through a transaction amongst entities under common control and based on the guidance for accounting for transactions amongst entities under common control HSN’s results have been excluded for the entire period.  Liberty LLC continues to hold 38% of CBI and accounts for its ownership in CBI as an equity method investment.

(2) On September 14, 2020, Qurate Retail issued the 8.0% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “Preferred Stock”). Holders of the Preferred Stock are entitled to receive quarterly cash dividends at a fixed rate of 8.0% per year on a cumulative basis, beginning December 15, 2020 and thereafter on each of March 15, June 15, September 15 and December 15 during the term. As the Preferred Stock is subject to unconditional mandatory redemption in cash and was issued in the form of a share, Qurate Retail concluded the Preferred Stock was a mandatorily redeemable financial instrument and should be classified as a liability in the condensed consolidated balance sheets.

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 30, 2024
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-33982
Entity Registrant Name	QURATE RETAIL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-1288730
Entity Address, Address Line One	12300 Liberty Boulevard
Entity Address, City or Town	Englewood
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80112
City Area Code	720
Local Phone Number	875-5300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001355096
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Class A
Document And Entity Information
Title of 12(b) Security	Series A common stock
Trading Symbol	QRTEA
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		387,931,205
Common Class B
Document And Entity Information
Title of 12(b) Security	Series B common stock
Trading Symbol	QRTEB
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		8,927,840
8.0% Series A Cumulative Redeemable Preferred Stock
Document And Entity Information
Title of 12(b) Security	8.0% Series A Cumulative Redeemable Preferred Stock
Trading Symbol	QRTEP
Security Exchange Name	NASDAQ

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 1,102	$ 1,121
Trade and other receivables, net of allowance for credit losses of $99 million and $102 million, respectively	980	1,308
Inventory, net	1,134	1,044
Other current assets	170	209
Total current assets	3,386	3,682
Property and equipment, net	496	512
Intangible assets not subject to amortization (note 5):
Goodwill	3,141	3,164
Trademarks	2,698	2,698
Intangible assets not subject to amortization	5,839	5,862
Intangible assets subject to amortization, net (note 5)	495	526
Operating lease right-of-use assets	629	635
Other assets, at cost, net of accumulated amortization	136	151
Total assets	10,981	11,368
Current liabilities:
Accounts payable	789	895
Accrued liabilities	715	983
Current portion of debt, $354 million and $219 million measured at fair value (note 6)	939	642
Other current liabilities	100	97
Total current liabilities	2,543	2,617
Long-term debt (note 6)	4,552	4,698
Deferred income tax liabilities	1,504	1,531
Preferred stock (note 7)	1,272	1,270
Operating lease liabilities	617	615
Other liabilities	142	148
Total liabilities	10,630	10,879
Stockholders' equity:
Additional paid-in capital	107	99
Accumulated other comprehensive earnings (loss), net of taxes	(51)	86
Retained earnings	195	196
Total stockholders' equity	255	385
Noncontrolling interests in equity of subsidiaries	96	104
Total equity	351	489
Commitments and contingencies (note 8)
Total liabilities and equity	10,981	11,368
Series A common stock
Stockholders' equity:
Common stock value	4	4
Series B common stock
Stockholders' equity:
Common stock value
Series C common stock
Stockholders' equity:
Common stock value

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Allowance for credit losses	$ 99	$ 102
Current portion of debt, fair value	$ 354	$ 219
Series A common stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	4,000,000,000	4,000,000,000
Common stock, shares issued (in shares)	387,931,205	383,047,720
Common stock, shares outstanding (in shares)	387,931,205	383,047,720
Series B common stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	8,927,840	8,700,380
Common stock, shares outstanding (in shares)	8,927,840	8,700,380
Series C common stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	4,000,000,000	4,000,000,000
Common stock, shares issued (in shares)	0	0

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue:
Total revenue, net	$ 2,342	$ 2,644
Type of revenue	us-gaap:RetailMember	us-gaap:RetailMember
Operating costs and expenses:
Cost of goods sold (exclusive of depreciation shown separately below)	$ 1,511	$ 1,809
Type of cost of retail sales	us-gaap:RetailMember	us-gaap:RetailMember
Operating expense	$ 180	$ 194
Selling, general and administrative, including stock-based compensation (note 2)	408	478
Depreciation and amortization	99	100
Gain on sale of assets and leaseback transactions (note 8)	(1)	(113)
Total operating costs and expenses	2,197	2,468
Operating income (loss)	145	176
Other income (expense):
Interest expense	(117)	(94)
Dividend and interest income	12	11
Realized and unrealized gains (losses) on financial instruments, net (note 4)	(7)	(32)
Other, net	(2)	4
Total other income (expense)	(114)	(111)
Earnings (loss) before income taxes	31	65
Income tax (expense) benefit	(23)	(32)
Net earnings (loss)	8	33
Less net earnings (loss) attributable to the noncontrolling interests	9	13
Net earnings (loss) attributable to Qurate Retail, Inc. shareholders	$ (1)	$ 20
Earnings (Loss) Per Common Share
Basic net earnings (loss) attributable to Series A and Series B Qurate Retail, Inc. shareholders per common share (note 3): (in dollars per share)		$ 0.05
Diluted net earnings (loss) attributable to Series A and Series B Qurate Retail, Inc. shareholders per common share (note 3): (in dollars per share)		$ 0.05

XML

Condensed Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statements of Comprehensive Earnings (Loss)
Net earnings (loss)	$ 8	$ 33
Other comprehensive earnings (loss), net of taxes:
Foreign currency translation adjustments	(44)	20
Recognition of previously unrealized losses (gains) on debt, net		(19)
Credit risk on fair value debt instruments gains (loss)	(99)	129
Other comprehensive earnings (loss)	(143)	130
Comprehensive earnings (loss)	(135)	163
Less comprehensive earnings (loss) attributable to the noncontrolling interests	3	12
Comprehensive earnings (loss) attributable to Qurate Retail, Inc. shareholders	$ (138)	$ 151

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net earnings (loss)	$ 8	$ 33
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization	99	100
Stock-based compensation	16	16
Realized and unrealized (gains) losses on financial instruments, net	7	32
Gain on sale of assets and sale leaseback transactions	(1)	(113)
Gain on insurance proceeds, net of fire related costs		(17)
Insurance proceeds received for operating expenses and business interruption losses		37
Deferred income tax expense (benefit)	(2)	(2)
Other, net	4	9
Changes in operating assets and liabilities
Decrease (increase) in accounts receivable	313	294
Decrease (increase) in inventory	(94)	25
Decrease (increase) in prepaid expenses and other assets	45	48
(Decrease) increase in trade accounts payable	(101)	(167)
(Decrease) increase in accrued and other liabilities	(268)	(279)
Net cash provided (used) by operating activities	26	16
Cash flows from investing activities:
Capital expenditures	(40)	(54)
Expenditures for television distribution rights	(2)	(38)
Cash proceeds from dispositions of investments	6	1
Proceeds from sale of fixed assets	6	198
Insurance proceeds received for fixed asset loss		18
Payments for settlements of financial instruments		(179)
Proceeds from settlements of financial instruments		167
Other investing activities, net	(1)	(1)
Net cash provided (used) by investing activities	(31)	112
Cash flows from financing activities:
Borrowings of debt	1,570	677
Repayments of debt	(1,555)	(803)
Dividends paid to noncontrolling interest	(11)	(12)
Dividends paid to common shareholders	(4)	(7)
Indemnification agreement settlement		24
Other financing activities, net	(2)	(1)
Net cash provided (used) by financing activities	(2)	(122)
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash	(12)	4
Net increase (decrease) in cash, cash equivalents and restricted cash	(19)	10
Cash, cash equivalents and restricted cash at beginning of period	1,136	1,285
Cash, cash equivalents and restricted cash at end of period	$ 1,117	$ 1,295

XML

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Condensed Consolidated Statements of Cash Flows
Cash and cash equivalents	$ 1,102	$ 1,121
Restricted cash included in other current assets	$ 15	$ 15
Restricted Cash and Cash Equivalents, Asset, Statement of Financial Position [Extensible List]	Other Assets, Current	Other Assets, Current
Total cash, cash equivalents and restricted cash in the condensed consolidated statement of cash flows	$ 1,117	$ 1,136

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Condensed Consolidated Statement of Equity - USD ($) $ in Millions	Common stock Series A Common stock	Additional paid-in capital	Accumulated other comprehensive earnings (loss)	Retained earnings	Noncontrolling Interest In Equity Of Subsidiaries	Total
Balance at Dec. 31, 2022	$ 4	$ 53	$ 18	$ 337	$ 113	$ 525
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)				20	13	33
Other comprehensive earnings (loss)			131		(1)	130
Stock-based compensation		14				14
Distribution to noncontrolling interest					(12)	(12)
Withholding taxes on net share settlements of stock-based compensation		(1)				(1)
Other		1		1		2
Balance at Mar. 31, 2023	4	67	149	358	113	691
Balance at Dec. 31, 2023	4	99	86	196	104	489
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)				(1)	9	8
Other comprehensive earnings (loss)			(137)		(6)	(143)
Stock-based compensation		9				9
Distribution to noncontrolling interest					(11)	(11)
Withholding taxes on net share settlements of stock-based compensation		(2)				(2)
Other		1				1
Balance at Mar. 31, 2024	$ 4	$ 107	$ (51)	$ 195	$ 96	$ 351

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Basis of Presentation

3 Months Ended

Mar. 31, 2024

Basis of Presentation

Basis of Presentation

(1)   Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of Qurate Retail, Inc. and its controlled subsidiaries (collectively, "Qurate Retail," the "Company," “Consolidated Qurate Retail,” “us,” “we,” or “our” unless the context otherwise requires). All significant intercompany accounts and transactions have been eliminated in consolidation. Qurate Retail is made up of wholly-owned subsidiaries QVC, Inc. (“QVC”), which includes HSN, Inc. (“HSN”), Cornerstone Brands, Inc. (“CBI”), and other cost method investments.

Qurate Retail is primarily engaged in the video and online commerce industries in North America, Europe and Asia. The businesses of the Company’s wholly-owned subsidiaries, QVC and CBI, are seasonal due to a higher volume of sales in the fourth calendar quarter related to year-end holiday shopping.  

The accompanying (a) condensed consolidated balance sheet as of December 31, 2023, 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 ("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 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. Additionally, certain prior period amounts have been reclassified for comparability with current period presentation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in Qurate Retail's Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 10-K”).

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of 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. Qurate Retail considers (i) fair value measurements, (ii) accounting for income taxes, and (iii) estimates of retail-related adjustments and allowances to be its most significant estimates.    

Qurate Retail has entered into certain agreements with Liberty Media Corporation ("LMC"), a separate publicly traded company. These agreements include a reorganization agreement, services agreement and facilities sharing agreement.  As a result of certain corporate transactions, LMC and Qurate Retail may have obligations to each other for certain tax related matters. Neither Qurate Retail nor LMC has any stock ownership, beneficial or otherwise, in the other. In connection with a split-off transaction that occurred in the first quarter of 2018 (the “GCI Liberty Split-Off”), Qurate Retail and GCI Liberty, Inc. (“GCI Liberty”) entered into a tax sharing agreement. Pursuant to the tax sharing agreement, GCI Liberty agreed to indemnify Qurate Retail for taxes and tax-related losses resulting from the GCI Liberty Split-Off to the extent such taxes or tax-related losses (i) result primarily from, individually or in the aggregate, the breach of certain restrictive covenants made by GCI Liberty (applicable to actions or failures to act by GCI Liberty and its subsidiaries following the completion of the GCI Liberty Split-Off), or (ii) result from Section 355(e) of the Internal Revenue Code applying to the GCI Liberty Split-Off as a result of the GCI Liberty Split-Off being part of a plan (or series of related transactions) pursuant to which one or more persons acquire, directly or indirectly, a 50-percent or greater interest (measured by vote or value) in the stock of GCI Liberty (or any successor corporation). Following a merger between Liberty Broadband Corporation (“Liberty Broadband”) and GCI Liberty, Liberty Broadband has assumed the tax sharing agreement.

In December 2019, the Company entered into an amended services agreement. Under the amended services agreement, components of LMC’s Chief Executive Officer’s compensation are either paid directly to him or reimbursed to LMC, in each case, based on allocations set forth in the amended services agreement, currently set at 10% for the Company but subject to adjustment on an annual basis and upon the occurrence of certain events.

The reorganization agreement with LMC provides for, among other things, provisions governing the relationship between Qurate Retail and LMC, including certain cross-indemnities. Pursuant to the services agreement, LMC provides

Qurate Retail with certain general and administrative services including legal, tax, accounting, treasury, information technology, cybersecurity and investor relations support. Qurate Retail reimburses LMC for direct, out-of-pocket expenses incurred by LMC in providing these services and for Qurate Retail's allocable portion of costs associated with any shared services or personnel based on an estimated percentage of time spent providing services to Qurate Retail. Under the facilities sharing agreement, LMC shares office space and related amenities at its corporate headquarters with Qurate Retail. Under these various agreements, approximately $3 million and $2 million was reimbursable to LMC for the three months ended March 31, 2024 and 2023, respectively. Qurate Retail had a cumulative tax sharing payable to LMC and Liberty Broadband in the amount of approximately $16 million as of both March 31, 2024 and December 31, 2023, included in other liabilities in the condensed consolidated balance sheets. 

Zulily, LLC (“Zulily”) was a wholly owned subsidiary of Qurate Retail until its divestiture on May 24, 2023. Qurate Retail recognized a loss on the divestiture of $64 million in the second quarter of 2023.  Zulily is included in Corporate and other through May 23, 2023 and is not presented as a discontinued operation as the disposition did not represent a strategic shift that had a major effect on Qurate Retail’s operations and financial results.

Included in revenue in the accompanying condensed consolidated statements of operations is $192 million for the three months ended March 31, 2023 related to Zulily. Included in net earnings (loss) in the accompanying condensed consolidated statement of operations is a loss of $35 million for the three months ended March 31, 2023 related to Zulily.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2024

Stock-Based Compensation

Stock-Based Compensation

(2)   Stock-Based Compensation

The Company has granted to certain of its directors, employees and employees of its subsidiaries, restricted stock (“RSAs”), restricted stock units (“RSUs”) and options to purchase shares of the Company’s common stock (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an equity classified Award (such as stock options and RSAs) based on the grant-date fair value (“GDFV”) of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date.

Included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations are $16 million of stock-based compensation during both of the three months ended March 31, 2024 and 2023.

Qurate Retail—RSUs

During the three months ended March 31, 2024 and in connection with their employment agreements, Qurate Retail granted 3.7 million performance-based, stock-settled RSUs of Series A Qurate Retail common stock (“QRTEA”) to our President and Chief Executive Officer and 296 thousand performance-based, stock-settled RSUs of Series B Qurate Retail common stock (“QRTEB”) to our Chairman of the Board.  Such RSUs had a GDFV of $1.23 per share and $5.01 per share, respectively, and vest one year from the month of grant, subject to the satisfaction of certain performance objectives.

The following table presents the number of cash-settled RSUs granted by the Company during the three months ended March 31, 2024:

	Three months ended
	March 31, 2024
	RSUs Granted (000's)
QRTEA time-based RSUs, subsidiary employees (1)	20,945
QRTEA performance-based RSUs, subsidiary employees (2)	20,305
QRTEA performance-based RSUs, Qurate Retail employees (3)	921

(1) Grants mainly vest equally over three years.

(2) Grants vest equally over three years, subject to the satisfaction of certain performance objectives.

(3) Grants vest one year from the month of grant, subject to the satisfaction of certain performance objectives.

For cash-settled RSUs, the liability and compensation expense related to such awards is adjusted at the end of each reporting period based on the closing market price of QRTEA on the last trading day of the quarter.

For awards that are performance-based, performance objectives, which are subjective, are considered in determining the timing and amount of compensation expense recognized. When the satisfaction of the performance objectives becomes probable, the Company records compensation expense. The probability of satisfying the performance objectives is assessed at the end of each reporting period.

Qurate Retail—Outstanding Awards

The following tables present the number and weighted average exercise price ("WAEP") of the options to purchase Qurate Retail common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the options.

				Weighted		Aggregate
				average		intrinsic
	Series A			remaining		value
	(000's)	WAEP		life		(millions)
Options outstanding at January 1, 2024	23,530	$	7.72
Granted	—	$	—
Exercised	—	$	—
Forfeited/Cancelled	(2,849)	$	10.87
Options outstanding at March 31, 2024	20,681	$	7.29	2.5	years	$	—
Options exercisable at March 31, 2024	18,333	$	7.13	2.4	years	$	—

				Weighted		Aggregate
				average		intrinsic
	Series B			remaining		value
	(000's)	WAEP		life		(millions)
Options outstanding at January 1, 2024	723	$	12.35
Granted	—	$	—
Exercised	—	$	—
Forfeited/Cancelled	—	$	—
Options outstanding at March 31, 2024	723	$	12.35	0.6	years	$	—
Options exercisable at March 31, 2024	723	$	12.35	0.6	years	$	—

The following table presents the number and weighted average GDFV of stock-settled RSUs granted to certain officers, employees and directors of the Company.

		Weighted			Weighted
	Series A	Average		Series B	Average
	(000's)	GDFV		(000's)	GDFV
RSUs outstanding at January 1, 2024	14,691	$	3.30	353	$	5.51
Granted	3,739	$	1.23	296	$	5.01
Vested	(5,612)	$	3.73	(353)	$	4.85
Forfeited/Cancelled	(1,115)	$	2.15	—	$	—
RSUs outstanding at March 31, 2024	11,703	$	2.54	296	$	5.01

As of March 31, 2024, Qurate Retail also had 1.1 million QRTEB RSAs outstanding with a GDFV of $13.65 per share.

As of March 31, 2024, the total unrecognized compensation cost related to unvested Awards was approximately $90 million. Such amount will be recognized in the Company's consolidated statements of operations over a weighted average period of approximately 1.7 years.

As of March 31, 2024, Qurate Retail reserved for issuance upon exercise of outstanding stock options approximately 20.7 million shares of QRTEA and 0.7 million shares of QRTEB.

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Earnings (Loss) Per Common Share

3 Months Ended

Mar. 31, 2024

Earnings (Loss) Per Common Share

Earnings (Loss) Per Common Share

(3)   Earnings (Loss) Per Common Share

Basic earnings (loss) per common share ("EPS") is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding ("WASO") for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive.

Excluded from diluted EPS for the three months ended March 31, 2024 and 2023 are 21 million and 30 million potential common shares, respectively, because their inclusion would have been antidilutive.  

	Qurate Retail Common Stock
	Three months ended
	March 31,
	2024	2023
	number of shares in millions
Basic WASO	392	383
Potentially dilutive shares	1	1
Diluted WASO	393	384

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Assets and Liabilities Measured at Fair Value

3 Months Ended

Mar. 31, 2024

Assets and Liabilities Measured at Fair Value

Assets and Liabilities Measured at Fair Value

(4)   Assets and Liabilities Measured at Fair Value

For assets and liabilities required to be reported at fair value, 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 are inputs, other than quoted market prices included within Level 1, that 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 at fair value are as follows:

	Fair Value Measurements at				Fair Value Measurements at
	March 31, 2024				December 31, 2023
			Quoted			Quoted
			prices			prices
			in active	Significant		in active	Significant
			markets for	other		markets for	other
			identical	observable		identical	observable
			assets	inputs		assets	inputs
Description	Total		(Level 1)	(Level 2)	Total	(Level 1)	(Level 2)
	amounts in millions
Cash equivalents	$	820	820	—	726	726	—
Debt	$	354	—	354	219	—	219

The majority of the Company's Level 2 financial assets and liabilities are primarily debt instruments and derivative instruments with quoted market prices that are not considered to be traded on "active markets," as defined in GAAP. The fair values for such instruments are derived from a typical model using observable market data as the significant inputs.

Realized and Unrealized Gains (Losses) on Financial Instruments

Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following:

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Equity securities		(2)	(3)
Exchangeable senior debentures		(5)	(31)
Other financial instruments		—	2
	$	(7)	(32)

The Company has elected to account for its exchangeable debt using the fair value option. Changes in the fair value of the exchangeable senior debentures recognized in the condensed consolidated statement of operations are primarily due to market factors primarily driven by changes in the fair value of the underlying shares into which the debt is exchangeable. The Company isolates the portion of the unrealized gain (loss) attributable to the change in the instrument specific credit risk and recognizes such amount in other comprehensive earnings (loss).  During the three months ended March 31, 2023, the Company recognized $25 million of previously unrecognized gains, which was recognized through realized and unrealized gains (losses) on financial instruments, net on the condensed consolidated statement of operations. The change in the fair value of the exchangeable senior debentures attributable to changes in the instrument specific credit risk was a loss of $129 million and a gain of $169 million for the three months ended March 31, 2024 and 2023, respectively.  The cumulative change was a gain of $410 million as of March 31, 2024, net of the recognition of previously unrecognized gains and losses.

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Intangible Assets

3 Months Ended

Mar. 31, 2024

Intangible Assets

Intangible Assets

(5)   Intangible Assets

Goodwill

Changes in the carrying amount of goodwill are as follows:

	QxH		QVC Int'l	CBI	Total
	amounts in millions
Balance at January 1, 2024	$	2,367	785	12	3,164
Foreign currency translation adjustments		—	(23)	—	(23)
Balance at March 31, 2024	$	2,367	762	12	3,141

Intangible Assets Subject to Amortization

Amortization expense for intangible assets with finite useful lives was $77 million and $74 million for the three months ended March 31, 2024 and 2023, respectively. Based on its amortizable intangible assets as of March 31, 2024, Qurate Retail expects that amortization expense will be as follows for the next five years (amounts in millions):

Remainder of 2024	$	215
2025	$	171
2026	$	103
2027	$	8
2028	$	—

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Long-Term Debt

3 Months Ended

Mar. 31, 2024

Long-Term Debt

Long-Term Debt

(6)   Long-Term Debt

Debt is summarized as follows:

	Outstanding
	principal at		Carrying value
	March 31, 2024		March 31, 2024		December 31, 2023
	amounts in millions
Corporate level debentures
8.5% Senior Debentures due 2029	$	287		286	286
8.25% Senior Debentures due 2030		505		503	503
4% Exchangeable Senior Debentures due 2029		352		162	101
3.75% Exchangeable Senior Debentures due 2030		428		192	118
Subsidiary level notes and facilities
QVC 4.85% Senior Secured Notes due 2024		—		—	423
QVC 4.45% Senior Secured Notes due 2025		586		585	585
QVC 4.75% Senior Secured Notes due 2027		575		575	575
QVC 4.375% Senior Secured Notes due 2028		500		500	500
QVC 5.45% Senior Secured Notes due 2034		400		399	399
QVC 5.95% Senior Secured Notes due 2043		300		300	300
QVC 6.375% Senior Secured Notes due 2067		225		225	225
QVC 6.25% Senior Secured Notes due 2068		500		500	500
QVC Senior Secured Credit Facility		1,295		1,295	857
Deferred loan costs		—		(31)	(32)
Total consolidated Qurate Retail debt	$	5,953		5,491	5,340
Less current classification				(939)	(642)
Total long-term debt			$	4,552	4,698

QVC Senior Secured Notes

As of March 31, 2024, the remaining outstanding 4.45% Senior Secured Notes due 2025 are classified within the current portion of long-term debt as they mature in less than one year.

On February 27, 2024, QVC delivered a notice of redemption to the trustee and holders of QVC’s 4.85% Senior Secured Notes due 2024 (“2024 Notes”).  Pursuant to the notice of redemption, QVC redeemed the remaining outstanding 2024 Notes in full on March 28, 2024.

The senior secured notes permit QVC to make unlimited dividends or other restricted payments so long as QVC is not in default under the indentures governing the senior secured notes and QVC’s consolidated leverage ratio is not greater than 3.5 to 1.0 (the “senior secured notes leverage basket”). As of March 31, 2024, QVC’s consolidated leverage ratio (as calculated under QVC’s senior secured notes) was greater than 3.5 to 1.0 and as a result QVC is restricted in its ability to make dividends or other restricted payments under the senior secured notes.  Although QVC will not be able to make unlimited dividends or other restricted payments under the senior secured notes leverage basket, QVC will continue to be permitted to make unlimited dividends to parent entities of QVC to service the principal and interest when due in respect of indebtedness of such parent entities (so long as there is no default under the indentures governing QVC’s senior secured notes) and permitted to make certain restricted payments to Qurate Retail under an intercompany tax sharing agreement in respect of certain tax obligations of QVC and its subsidiaries.

QVC Senior Secured Credit Facility

On October 27, 2021, QVC amended and restated its latest credit agreement (as amended and restated, the “Fifth Amended and Restated Credit Agreement”) and refinanced QVC’s existing bank credit facility by entering into the Fifth

Amended and Restated Credit Agreement with Zulily, CBI, and QVC Global Corporate Holdings, LLC (“QVC Global”), each a direct or indirect (or former, in the case of Zulily) wholly owned subsidiary of Qurate Retail, as borrowers (QVC, Zulily, CBI and QVC Global, collectively, the “Borrowers”), JPMorgan Chase Bank, N.A., as administrative agent, and the other parties named therein. In connection with the Zulily divestiture (see note 1), Zulily is no longer a co-borrower in the Credit Facility, and Zulily repaid its outstanding borrowings under the Fifth Amended and Restated Credit Agreement using cash contributed from Qurate Retail, which was approximately $80 million.

The Fifth Amended and Restated Credit Agreement is a multi-currency facility providing for a $3.25 billion revolving credit facility (the “Credit Facility”), with a $450 million sub-limit for letters of credit and an alternative currency revolving sub-limit equal to 50% of the revolving commitments thereunder. The Credit Facility may be borrowed by any Borrower, with each Borrower jointly and severally liable for the outstanding borrowings. Borrowings under the Fifth Amended and Restated Credit Agreement bear interest at either the alternate base rate (such rate, the “ABR Rate”) or a London Inter-bank Offered Rate (“LIBOR”)-based rate (or the applicable non-U.S. Dollar equivalent rate) (such rate, the “Term Benchmark/RFR Rate”) at the applicable Borrower’s election in each case plus a margin. Borrowings that are ABR Rate loans will bear interest at a per annum rate equal to the base rate plus a margin that varies between 0.25% and 0.625% depending on the Borrowers’ combined ratio of consolidated total debt to consolidated EBITDA (the “consolidated leverage ratio”). Borrowings that are Term Benchmark/RFR Rate loans will bear interest at a per annum rate equal to the applicable rate plus a margin that varies between 1.25% and 1.625% depending on the Borrowers’ 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 CBI, QVC Global or any other borrower under the Credit Facility (other than QVC) is removed, at the election of QVC, as a borrower thereunder, all of its loans must be repaid and its letters of credit are terminated or cash collateralized. Any amounts prepaid on the Credit Facility may be reborrowed.

On June 20, 2023, QVC, QVC Global and CBI, as borrowers,  JPMorgan Chase Bank, N.A., as administrative agent, and the other parties thereto entered into an agreement whereby, in accordance with the Fifth Amended and Restated Credit Agreement, LIBOR-based rate loans denominated in U.S. dollars made on or after June 30, 2023 would be replaced with SOFR-based rate loans.  Borrowings that are Secured Overnight Financing Rate (“SOFR”)-based loans will bear interest at a per annum rate equal to the applicable SOFR rate, plus a credit spread adjustment, plus a margin that varies between 1.25% and 1.625% depending on the Borrowers’ consolidated leverage ratio.

The loans under the Credit Facility are scheduled to mature on October 27, 2026. Payment of the loans may be accelerated following certain customary events of default.

The payment and performance of the Borrowers’ obligations under the Fifth Amended and Restated Credit Agreement are guaranteed by each of QVC’s, QVC Global’s, and CBI’s Material Domestic Subsidiaries (as defined in the Fifth Amended and Restated Credit Agreement), if any, and certain other subsidiaries of any Borrower that such Borrower has chosen to provide guarantees. Further, the borrowings under the Fifth Amended and Restated Credit Agreement are secured, pari passu with QVC’s existing notes, by a pledge of all of QVC’s equity interests. The borrowings under the Fifth Amended and Restated Credit Agreement are also secured by a pledge of all of CBI’s equity interests.

The Fifth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including certain restrictions on the Borrowers 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 Borrowers’ consolidated leverage ratio.

Borrowings under the Fifth Amended and Restated Credit Agreement may be used to repay outstanding indebtedness, pay certain fees and expenses, finance working capital needs and general purposes of the Borrowers and their respective subsidiaries and make certain restricted payments and loans to the Borrowers’ respective parents and affiliates.

Availability under the Fifth Amended and Restated Credit Agreement at March 31, 2024 was $1,866 million.  The interest rate on the Credit Facility was 6.8% and 6.3% at March 31, 2024 and 2023, respectively.

Exchangeable Senior Debentures

The Company has elected to account for its exchangeable senior debentures using the fair value option.  Accordingly, changes in the fair value of these instruments are recognized as unrealized gains (losses) in the statements of operations. See note 4 for information related to unrealized gains (losses) on debt measured at fair value.  As of March 31, 2024 the Company’s 3.75% and 4.0% Exchangeable Debentures have been classified as current because the Company does not own shares to exchange the debentures. The Company reviews the terms of the debentures on a quarterly basis to determine whether a triggering event has occurred to require current classification of the exchangeables upon a call event.  

Fair Value of Debt

Qurate Retail estimates the fair value of its debt based on the quoted market prices for the same or similar issues or on the current rate offered to Qurate Retail for debt of the same remaining maturities (Level 2). The QVC 6.375% Senior Secured Notes due 2067 (“2067 Notes”) and the QVC 6.25% Senior Secured Notes Due 2068 (“2068 Notes”) are traded on the New York Stock Exchange, and the Company considers them to be actively traded. As such, the 2067 Notes and 2068 Notes are valued based on their trading price (Level 1). The fair value of Qurate Retail's publicly traded debt securities that are not reported at fair value in the accompanying condensed consolidated balance sheet at March 31, 2024 are as follows (amounts in millions):

Senior debentures	$	480
QVC senior secured notes	$	2,347

Due to the variable rate nature, Qurate Retail believes that the carrying amount of its other debt, not discussed above, approximated fair value at March 31, 2024.

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Preferred Stock

3 Months Ended

Mar. 31, 2024

Preferred Stock.

Preferred Stock

(7)   Preferred Stock

On September 14, 2020, Qurate Retail issued its 8.0% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “Preferred Stock”). There were 13,500,000 shares of Preferred Stock authorized and 12,723,161 shares of Preferred Stock issued and outstanding at March 31, 2024. 

Priority. The Preferred Stock ranks senior to the shares of Qurate Retail common stock, with respect to dividend rights, rights of redemption and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of Qurate Retail’s affairs. Shares of Preferred Stock are not convertible into shares of Qurate Retail common stock.

Dividends. Holders of the Preferred Stock are entitled to receive quarterly cash dividends at a rate of 8.0% per annum of the liquidation price (as described below) on a cumulative basis, during the term. If declared, accrued dividends will be payable quarterly on each dividend payment date, beginning December 15, 2020 and thereafter on each March 15, June 15, September 15, and December 15 during the term (or, if such date is not a business day, the next business day after such date). If Qurate Retail fails to pay dividends or the applicable redemption price with respect to any redemption within 30 days after the applicable dividend payment or redemption date, the dividend rate will increase as provided by the Certificate of Designations for the Preferred Stock (the “Certificate of Designations”). Accrued dividends that are not paid within 30 days after the applicable dividend payment date will be added to the liquidation price until paid together with all dividends accrued thereon.

The ability of Qurate Retail to declare or pay any dividend on, or purchase, redeem, or otherwise acquire, any of its common stock or any other stock ranking on parity with the Preferred Stock will be subject to restrictions if Qurate

Retail does not pay all dividends and all redemption payments on the Preferred Stock, subject to certain exceptions as set forth in the Certificate of Designations.

Distributions upon Liquidation, Dissolution or Winding Up. Upon Qurate Retail’s liquidation, winding-up or dissolution, each holder of shares of the Preferred Stock will be entitled to receive, before any distribution is made to the holders of Qurate Retail common stock, an amount equal to the liquidation price plus all unpaid dividends (whether or not declared) accrued from the immediately preceding dividend payment date, subject to the prior payment of liabilities owed to Qurate Retail’s creditors and the preferential amounts to which any stock senior to the Preferred Stock is entitled. The Preferred Stock has a liquidation price equal to the sum of (i) $100, plus (ii) all accrued and unpaid dividends (whether or not declared) that have been added to the liquidation price.

Mandatory and Optional Redemption. The Preferred Stock is subject to mandatory redemption on March 15, 2031 at the liquidation price plus all unpaid dividends (whether or not declared) accrued from the most recent dividend payment date. On or after the fifth anniversary of September 14, 2020 (the “Original Issue Date”), Qurate Retail may redeem all or a portion of the outstanding shares of Preferred Stock, at the liquidation price plus all unpaid dividends (whether or not declared) accrued from the most recent dividend payment date plus, if the redemption is (x) on or after the fifth anniversary of the Original Issue Date but prior to its sixth anniversary, 4.00% of the liquidation price, (y) on or after the sixth anniversary of the Original Issue Date but prior to its seventh anniversary, 2.00% of the liquidation price and (z) on or after the seventh anniversary of the Original Issue Date, zero. Both mandatory and optional redemptions must be paid in cash.

Voting Power. Holders of the Preferred Stock will not have any voting rights or powers, except as specified in the Certificate of Designations or as required by Delaware law.

Preferred Stock Directors. So long as the aggregate liquidation price of the outstanding shares of Preferred Stock exceeds 25% of the aggregate liquidation price of the shares of Preferred Stock issued on the Original Issue Date, holders of Preferred Stock will have certain director election rights as described in the Certificate of Designations whenever dividends on shares of Preferred Stock have not been declared and paid for two consecutive dividend periods and whenever Qurate Retail fails to pay the applicable redemption price in full with respect to any redemption of the Preferred Stock or fails to make a payment with respect to the Preferred Stock in connection with a liquidation or Extraordinary Transactions (as defined in the Certificate of Designations).

Recognition. As the Preferred Stock is subject to unconditional mandatory redemption in cash and was issued in the form of a share, the Company concluded the Preferred Stock was a mandatorily redeemable financial instrument and should be classified as a liability in the condensed consolidated balance sheets. The Preferred Stock was initially recorded at its fair value, which was determined to be the liquidation preference of $100 per share. Given the liability classification of the Preferred Stock, all dividends accrued will be classified as interest expense in the condensed consolidated statements of operations. The fair value of the Preferred Stock (level 1) was $633 million as of March 31, 2024.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies.

Commitments and Contingencies

(8)   Commitments and Contingencies

Litigation

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 Qurate Retail 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 amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements.

Fire at Rocky Mount Fulfillment Center

On December 18, 2021, QVC experienced a fire at its Rocky Mount fulfillment center in North Carolina. Rocky Mount was QVC’s second-largest fulfillment center for the operating segment comprised of QVC U.S. and HSN (“QxH”) and QVC’s primary returns center for hard goods. QVC maintains property, general liability and business interruption insurance coverage. Based on provisions of QVC's insurance policies, the Company recorded insurance recoveries for fire related costs for which recovery is deemed probable.  

In June 2023, QVC agreed to a final insurance settlement with its insurance company and received all remaining proceeds related to the Rocky Mount claim. As of December 31, 2023, QVC recorded cumulative fire related costs of $439 million, which included $119 million of costs that were not reimbursable by QVC’s insurance policies. As of December 31, 2023, QVC received cumulative insurance proceeds of $660 million, and recorded net gains, representing the proceeds received in excess of recoverable losses recognized of $208 million. Of the $280 million of insurance proceeds received during the year ended December 31, 2023, $210 million represents recoveries for business interruption losses.

During the three months ended March 31, 2023, QVC received $55 million of insurance proceeds and recognized a gain of $15 million on insurance proceeds received in excess of fire losses, which was partially offset by $11 million of other fire related costs.

In February 2023, QVC sold the Rocky Mount fulfillment center to an independent third party and received cumulative net cash proceeds of $19 million as of December 31, 2023, of which $15 million was received during the three months ended March 31, 2023. QVC recognized a $13 million gain on the sale during the three months ended March 31, 2023, calculated as the difference between the aggregate consideration received and the carrying value of the property.

Project Athens

On June 27, 2022, Qurate Retail announced a five-point turnaround plan designed to stabilize and differentiate its core QVC U.S. and HSN brands and expand the Company's leadership in video streaming commerce (“Project Athens”). Project Athens main initiatives include: (i) improve customer experience and grow relationships; (ii) rigorously execute core processes; (iii) lower cost to serve; (iv) optimize the brand portfolio; and (v) build new high growth businesses.

During 2022, QVC commenced the first phase of Project Athens including actions to reduce inventory and a planned workforce reduction that was completed in February 2023. During the three months ended March 31, 2023, QVC recorded restructuring charges of $13 million. These initiatives are consistent with QVC’s strategy to operate more efficiently as it implements its turnaround plan.

Zulily Restructuring

In the first quarter of 2022, Zulily began to execute a series of transformation initiatives, beginning with the announcement of the closure of its fulfillment center in Bethlehem, Pennsylvania, and reduction in corporate workforce. These initiatives were consistent with Zulily’s strategy to operate more efficiently as it implemented its turnaround plan. Zulily recorded $4 million of restructuring charges during the three months ended March 31, 2023 related to its reduction in corporate workforce. See note 1 for a discussion regarding the Company’s divestiture of Zulily on May 24, 2023.

Gains on sale leaseback transactions

In November 2022, QVC entered into agreements to sell two properties located in Germany and the United Kingdom (“U.K.”) to an independent third party. Under the terms of the agreements, QVC received net cash proceeds of $102 million related to its German facility and $80 million related to its U.K. facility when the sale closed in January 2023. Concurrent with the sale, the Company entered into agreements to lease each of the properties back from the purchaser over an initial term of 20 years with the option to extend the terms of the property leases for up to four consecutive terms of five years. QVC recorded a gain of $69 million and $44 million related to the successful sale leaseback of the German and U.K. properties, respectively, during the first quarter of 2023 calculated as the difference between the aggregate consideration received and the carrying value of the properties. QVC accounted for the leases as operating at the close of the sale

leaseback transaction, leases and recorded a $42 million and $32 million right-of-use asset and operating lease liability for the German and U.K. properties, respectively.

In December 2023, QVC entered into an agreement to sell an owned and operated property in Germany to an independent third party. This property was owned as of December 31, 2023, and is included in other assets in the condensed consolidated balance sheet. Under the terms of the agreement, QVC received net cash proceeds of $6 million related to its German facility when the sale closed in February 2024. QVC recognized a $1 million gain related to the sale during the first quarter of 2024, calculated as the difference between the aggregate consideration received and the carrying value of the property. Concurrent with the sale, QVC entered into an agreement to lease a portion of the property back over 2 years and recorded an operating lease right-of-use asset and operating lease liability of $1 million.

On October 31, 2022, the Company entered into foreign currency forward contracts with an aggregate notional amount of $167 million to mitigate the foreign currency risk associated with the sale and leaseback of Germany and U.K. properties. The forwards did not qualify as cash flow hedges under GAAP. Changes in the fair value of the forwards are reflected in realized and unrealized gains (losses) on financial instruments, net in the condensed consolidated statements of operations. The contracts expired in January 2023 which resulted in a net cash settlement of $12 million.

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Information About Qurate Retail's Operating Segments

3 Months Ended

Mar. 31, 2024

Information About Qurate Retail's Operating Segments

Information About Qurate Retail's Operating Segments

(9)   Information About Qurate Retail's Operating Segments

Qurate Retail, through its ownership interests in subsidiaries and other companies, is primarily engaged in the video and online commerce industries. Qurate Retail identifies its reportable segments as (A) those operating segments that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA (as defined below) or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of Qurate Retail's annual pre-tax earnings.

The Qurate Retail chief operating decision maker primarily evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, Qurate Retail reviews nonfinancial measures such as unique website visitors, number of units shipped, conversion rates and active customers, as appropriate.

For the three months ended March 31, 2024, Qurate Retail has identified the following operating segments as its reportable segments:

● QxH –   QVC U.S. and HSN market and sell a wide variety of consumer products in the U.S., primarily by means of their televised shopping programs and via the Internet through their websites and mobile applications.

● QVC International – QVC International markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications.

● CBI –  CBI consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites.

Qurate Retail's operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies.  The accounting policies of the segments are the same as those described in the Company's Summary of Significant Accounting Policies in the 2023 10-K.

Performance Measures

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

		Three months ended
		March 31, 2024
			QxH	QVC Int'l	CBI	Corp and other	Total
	in millions
Home		$	589	237	189	—	1,015
Apparel			282	108	42	—	432
Beauty			239	129	—	—	368
Accessories			201	48	—	—	249
Electronics			108	15	—	—	123
Jewelry			80	33	—	—	113
Other revenue			40	2	—	—	42
Total Revenue		$	1,539	572	231	—	2,342

		Three months ended
		March 31, 2023
			QxH	QVC Int'l	CBI	Corp and other	Total
	in millions
Home		$	635	237	214	50	1,136
Apparel			295	113	45	70	523
Beauty			246	133	—	9	388
Accessories			192	51	—	50	293
Electronics			110	17	—	2	129
Jewelry			77	39	—	8	124
Other revenue			46	2	—	3	51
Total Revenue		$	1,601	592	259	192	2,644

For segment reporting purposes, Qurate Retail defines Adjusted OIBDA as revenue less cost of goods sold, operating expenses, and selling, general and administrative expenses excluding stock-based compensation and, where applicable, separately identified items impacting comparability. Qurate Retail believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, and where applicable, separately identified impairments, litigation settlements, restructuring, penalties, acquisition-related costs, fire related costs, net (including Rocky Mount inventory losses) and gains (losses) on sale leaseback transactions, that are included in the measurement of operating income (loss) pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income (loss), net earnings (loss), cash flows provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Qurate Retail generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.

Adjusted OIBDA is summarized as follows:

	Three months ended March 31,
		2024	2023
	amounts in millions
QxH	$	185	139
QVC International		75	72
CBI		6	4
Corporate and other		(7)	(36)
Consolidated Qurate Retail	$	259	179

Other Information

	March 31, 2024
	Total assets		Capital expenditures
	amounts in millions
QxH	$	7,840	22
QVC International		1,793	10
CBI		555	8
Corporate and other		793	—
Consolidated Qurate Retail	$	10,981	40

The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes:

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Adjusted OIBDA	$	259	179
Stock-based compensation		(16)	(16)
Depreciation and amortization		(99)	(100)
Gain on sale of assets and sale leaseback transactions		1	113
Operating income (loss)	$	145	176
Interest expense		(117)	(94)
Interest and dividend income		12	11
Realized and unrealized gains (losses) on financial instruments, net		(7)	(32)
Other, net		(2)	4
Earnings (loss) before income taxes	$	31	65

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of number of cash-settled RSUs granted

	Three months ended
	March 31, 2024
	RSUs Granted (000's)
QRTEA time-based RSUs, subsidiary employees (1)	20,945
QRTEA performance-based RSUs, subsidiary employees (2)	20,305
QRTEA performance-based RSUs, Qurate Retail employees (3)	921

(1) Grants mainly vest equally over three years.

(2) Grants vest equally over three years, subject to the satisfaction of certain performance objectives.

(3) Grants vest one year from the month of grant, subject to the satisfaction of certain performance objectives.

Schedule of number and weighted average GDFV of RSUs granted to certain officers, employees and directors

		Weighted			Weighted
	Series A	Average		Series B	Average
	(000's)	GDFV		(000's)	GDFV
RSUs outstanding at January 1, 2024	14,691	$	3.30	353	$	5.51
Granted	3,739	$	1.23	296	$	5.01
Vested	(5,612)	$	3.73	(353)	$	4.85
Forfeited/Cancelled	(1,115)	$	2.15	—	$	—
RSUs outstanding at March 31, 2024	11,703	$	2.54	296	$	5.01

Common Class A

Schedule of number, weighted average exercise price ("WAEP"), Weighted average remaining life and aggregate intrinsic value of the awards

				Weighted		Aggregate
				average		intrinsic
	Series A			remaining		value
	(000's)	WAEP		life		(millions)
Options outstanding at January 1, 2024	23,530	$	7.72
Granted	—	$	—
Exercised	—	$	—
Forfeited/Cancelled	(2,849)	$	10.87
Options outstanding at March 31, 2024	20,681	$	7.29	2.5	years	$	—
Options exercisable at March 31, 2024	18,333	$	7.13	2.4	years	$	—

Common Class B

Schedule of number, weighted average exercise price ("WAEP"), Weighted average remaining life and aggregate intrinsic value of the awards

				Weighted		Aggregate
				average		intrinsic
	Series B			remaining		value
	(000's)	WAEP		life		(millions)
Options outstanding at January 1, 2024	723	$	12.35
Granted	—	$	—
Exercised	—	$	—
Forfeited/Cancelled	—	$	—
Options outstanding at March 31, 2024	723	$	12.35	0.6	years	$	—
Options exercisable at March 31, 2024	723	$	12.35	0.6	years	$	—

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Earnings (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings (Loss) Per Common Share

Schedule of WASO

	Qurate Retail Common Stock
	Three months ended
	March 31,
	2024	2023
	number of shares in millions
Basic WASO	392	383
Potentially dilutive shares	1	1
Diluted WASO	393	384

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Assets and Liabilities Measured at Fair Value (Tables)

3 Months Ended

Mar. 31, 2024

Assets and Liabilities Measured at Fair Value

Schedule of assets and liabilities measured at fair value

	Fair Value Measurements at				Fair Value Measurements at
	March 31, 2024				December 31, 2023
			Quoted			Quoted
			prices			prices
			in active	Significant		in active	Significant
			markets for	other		markets for	other
			identical	observable		identical	observable
			assets	inputs		assets	inputs
Description	Total		(Level 1)	(Level 2)	Total	(Level 1)	(Level 2)
	amounts in millions
Cash equivalents	$	820	820	—	726	726	—
Debt	$	354	—	354	219	—	219

Summary of realized and unrealized gains (losses) on financial instruments

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Equity securities		(2)	(3)
Exchangeable senior debentures		(5)	(31)
Other financial instruments		—	2
	$	(7)	(32)

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2024

Intangible Assets

Schedule of changes in the carrying amount of goodwill

	QxH		QVC Int'l	CBI	Total
	amounts in millions
Balance at January 1, 2024	$	2,367	785	12	3,164
Foreign currency translation adjustments		—	(23)	—	(23)
Balance at March 31, 2024	$	2,367	762	12	3,141

Schedule of amortization expense for the next five years

Based on its amortizable intangible assets as of March 31, 2024, Qurate Retail expects that amortization expense will be as follows for the next five years (amounts in millions):

Remainder of 2024	$	215
2025	$	171
2026	$	103
2027	$	8
2028	$	—

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2024

Long-Term Debt

Schedule of debt summarized

	Outstanding
	principal at		Carrying value
	March 31, 2024		March 31, 2024		December 31, 2023
	amounts in millions
Corporate level debentures
8.5% Senior Debentures due 2029	$	287		286	286
8.25% Senior Debentures due 2030		505		503	503
4% Exchangeable Senior Debentures due 2029		352		162	101
3.75% Exchangeable Senior Debentures due 2030		428		192	118
Subsidiary level notes and facilities
QVC 4.85% Senior Secured Notes due 2024		—		—	423
QVC 4.45% Senior Secured Notes due 2025		586		585	585
QVC 4.75% Senior Secured Notes due 2027		575		575	575
QVC 4.375% Senior Secured Notes due 2028		500		500	500
QVC 5.45% Senior Secured Notes due 2034		400		399	399
QVC 5.95% Senior Secured Notes due 2043		300		300	300
QVC 6.375% Senior Secured Notes due 2067		225		225	225
QVC 6.25% Senior Secured Notes due 2068		500		500	500
QVC Senior Secured Credit Facility		1,295		1,295	857
Deferred loan costs		—		(31)	(32)
Total consolidated Qurate Retail debt	$	5,953		5,491	5,340
Less current classification				(939)	(642)
Total long-term debt			$	4,552	4,698

Schedule of fair value of debt securities that are not reported at fair value condensed consolidated balance sheet

The fair value of Qurate Retail's publicly traded debt securities that are not reported at fair value in the accompanying condensed consolidated balance sheet at March 31, 2024 are as follows (amounts in millions):

Senior debentures	$	480
QVC senior secured notes	$	2,347

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Information About Qurate Retail's Operating Segments (Tables)

3 Months Ended

Mar. 31, 2024

Information About Qurate Retail's Operating Segments

Schedule of disaggregation of revenue

		Three months ended
		March 31, 2024
			QxH	QVC Int'l	CBI	Corp and other	Total
	in millions
Home		$	589	237	189	—	1,015
Apparel			282	108	42	—	432
Beauty			239	129	—	—	368
Accessories			201	48	—	—	249
Electronics			108	15	—	—	123
Jewelry			80	33	—	—	113
Other revenue			40	2	—	—	42
Total Revenue		$	1,539	572	231	—	2,342

		Three months ended
		March 31, 2023
			QxH	QVC Int'l	CBI	Corp and other	Total
	in millions
Home		$	635	237	214	50	1,136
Apparel			295	113	45	70	523
Beauty			246	133	—	9	388
Accessories			192	51	—	50	293
Electronics			110	17	—	2	129
Jewelry			77	39	—	8	124
Other revenue			46	2	—	3	51
Total Revenue		$	1,601	592	259	192	2,644

Performance Measures

	Three months ended March 31,
		2024	2023
	amounts in millions
QxH	$	185	139
QVC International		75	72
CBI		6	4
Corporate and other		(7)	(36)
Consolidated Qurate Retail	$	259	179

Other Information By Segment

	March 31, 2024
	Total assets		Capital expenditures
	amounts in millions
QxH	$	7,840	22
QVC International		1,793	10
CBI		555	8
Corporate and other		793	—
Consolidated Qurate Retail	$	10,981	40

Reconciliation Of Segment Adjusted OIBDA To Operating income (loss) and Earnings (Loss) From Continuing Operations Before Income Taxes

	Three months ended
	March 31,
	2024		2023
	amounts in millions
Adjusted OIBDA	$	259	179
Stock-based compensation		(16)	(16)
Depreciation and amortization		(99)	(100)
Gain on sale of assets and sale leaseback transactions		1	113
Operating income (loss)	$	145	176
Interest expense		(117)	(94)
Interest and dividend income		12	11
Realized and unrealized gains (losses) on financial instruments, net		(7)	(32)
Other, net		(2)	4
Earnings (loss) before income taxes	$	31	65

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Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2023
Affiliated Entity | Liberty Media Corporation and Liberty Broadband Corporation
Basis
Other Liabilities	$ 16			$ 16
Affiliated Entity | Liberty Media
Basis
Related party transaction, amounts of transaction	$ 3		$ 2
Affiliated Entity | Liberty Media | CEO
Basis
CEO compensation allocation percentage	10.00%
Zulily | Disposed of by Sale, Not Discontinued Operations
Basis
Loss on disposition of Zulily, net		$ (64)
Revenue			192
Net loss			$ (35)

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Stock-Based Compensation (Stock-Based Compensation Allocated To Selling, General And Administrative Expenses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock-Based Compensation
Stock-based compensation	$ 16	$ 16

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Stock-Based Compensation - Narrative (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Common Class A | Restricted Stock Units (RSUs)
Stock-based compensation
Grants in period	3,739
Weighted Average GDFV | $ / shares	$ 1.23
Common Class A | Qurate Retail common stock, subsidiary employees | Performance Shares
Stock-based compensation
Grants in period	20,305
Award vesting period	3 years
Common Class A | Qurate Retail common stock, subsidiary employees | Time-based RSUs
Stock-based compensation
Grants in period	20,945
Award vesting period	3 years
Common Class A | Qurate Retail Employees | Performance Shares
Stock-based compensation
Grants in period	921
Award vesting period	1 year
Common Class A | Qurate Retail President and CEO | Restricted Stock Units (RSUs)
Stock-based compensation
Award vesting period	1 year
Common Class A | Qurate Retail President and CEO | Performance Shares
Stock-based compensation
Grants in period	3,700
Weighted Average GDFV | $ / shares	$ 1.23
Common Class B | Restricted Stock Units (RSUs)
Stock-based compensation
Grants in period	296
Weighted Average GDFV | $ / shares	$ 5.01
Common Class B | Qurate Retail President and CEO | Restricted Stock Units (RSUs)
Stock-based compensation
Award vesting period	1 year
Common Class B | Qurate Retail Chairman Of Board | Performance Shares
Stock-based compensation
Grants in period	296
Weighted Average GDFV | $ / shares	$ 5.01

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Stock-Based Compensation - Grants (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Common Class A
Number of options
Outstanding at beginning of period | shares	23,530
Forfeited/Cancelled | shares	(2,849)
Outstanding at end of period | shares	20,681
Exercisable at end of period | shares	18,333
WAEP
Outstanding at beginning of period | $ / shares	$ 7.72
Forfeited/Cancelled | $ / shares	10.87
Outstanding at end of period | $ / shares	7.29
Exercisable at end of period | $ / shares	$ 7.13
Additional disclosures
Weighted average remaining life - options outstanding	2 years 6 months
Weighted average remaining life - options exercisable	2 years 4 months 24 days
Common Class B
Number of options
Outstanding at beginning of period | shares	723
Outstanding at end of period | shares	723
Exercisable at end of period | shares	723
WAEP
Outstanding at beginning of period | $ / shares	$ 12.35
Outstanding at end of period | $ / shares	12.35
Exercisable at end of period | $ / shares	$ 12.35
Additional disclosures
Weighted average remaining life - options outstanding	7 months 6 days
Weighted average remaining life - options exercisable	7 months 6 days

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Stock-Based Compensation - GDFV of RSUs (Details) - Restricted Stock Units (RSUs) shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Common Class A
Number of shares
RSUs outstanding, beginning balance | shares	14,691
Granted | shares	3,739
Vested | shares	(5,612)
Forfeited/Cancelled | shares	(1,115)
RSUs outstanding, ending balance | shares	11,703
Weighted Average GDFV
RSUs outstanding , beginning balance | $ / shares	$ 3.30
Granted | $ / shares	1.23
Vested | $ / shares	3.73
Forfeited/Cancelled | $ / shares	2.15
RSUs outstanding, ending balance | $ / shares	$ 2.54
Common Class B
Number of shares
RSUs outstanding, beginning balance | shares	353
Granted | shares	296
Vested | shares	(353)
RSUs outstanding, ending balance | shares	296
Weighted Average GDFV
RSUs outstanding , beginning balance | $ / shares	$ 5.51
Granted | $ / shares	5.01
Vested | $ / shares	4.85
RSUs outstanding, ending balance | $ / shares	$ 5.01

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Stock-Based Compensation - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Stock-based compensation
Total unrecognized compensation cost related to unvested Awards | $	$ 90
Weighted average period of recognition related to unvested equity awards (in years)	1 year 8 months 12 days
Common Class A
Stock-based compensation
Shares reserved for future issuance upon exercise of stock options	20.7
Common Class B
Stock-based compensation
Shares reserved for future issuance upon exercise of stock options	0.7
Restricted Stock | Common Class B
Stock-based compensation
RSUs outstanding	1.1
RSUs/RSAs GDFV | $ / shares	$ 13.65

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Earnings (Loss) Per Common Share - Earnings Per Share Basic and Diluted (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings (Loss) Per Common Share
Antidilutive securities	21	30
Basic WASO	392	383
Potentially dilutive shares	1	1
Diluted WASO	393	384

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Assets and Liabilities Measured at Fair Value - Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Assets and liabilities measured at fair value
Cash equivalents	$ 820	$ 726
Debt	354	219
Quoted prices in active markets for identical assets (Level 1)
Assets and liabilities measured at fair value
Cash equivalents	820	726
Significant other observable inputs (Level 2)
Assets and liabilities measured at fair value
Debt	$ 354	$ 219

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Assets and Liabilities Measured at Fair Value - Realized and Unrealized Gains (Losses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Realized and unrealized gains (losses) on financial instruments
Realized and unrealized gains (losses) on financial instruments	$ (7)	$ (32)
Change in fair value of exchangeable senior debentures realized gain (loss)	(129)	169
Cumulative amount of gain in change in fair value	410
1.75% Exchangeable Senior Debentures due 2046
Realized and unrealized gains (losses) on financial instruments
Gain (loss) on extinguishment of debt		25
Equity securities
Realized and unrealized gains (losses) on financial instruments
Realized and unrealized gains (losses) on financial instruments	(2)	(3)
Exchangeable senior debentures
Realized and unrealized gains (losses) on financial instruments
Realized and unrealized gains (losses) on financial instruments	$ (5)	(31)
Other Financial Instruments
Realized and unrealized gains (losses) on financial instruments
Realized and unrealized gains (losses) on financial instruments		$ 2

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Intangible Assets - Changes In The Carrying Amount Of Goodwill (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Changes in the carrying amount of goodwill
Balance, beginning of the year	$ 3,164
Foreign currency translation adjustments	(23)
Balance, end of the year	3,141
QxH
Changes in the carrying amount of goodwill
Balance, beginning of the year	2,367
Balance, end of the year	2,367
QVC International
Changes in the carrying amount of goodwill
Balance, beginning of the year	785
Foreign currency translation adjustments	(23)
Balance, end of the year	762
CBI
Changes in the carrying amount of goodwill
Balance, beginning of the year	12
Balance, end of the year	$ 12

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Intangible Assets - Amortization Expense For The Next Five Fiscal Years (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Intangible Assets
Amortization expense for intangible assets	$ 77	$ 74
Amortization expense for the next five years
Remainder of 2024	215
2025	171
2026	103
2027	$ 8

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Long-Term Debt - Debt Table (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Debt
Outstanding principal	$ 5,953
Deferred loan costs	(31)	$ (32)
Total consolidated debt	5,491	5,340
Less current classification	(939)	(642)
Total long-term debt	4,552	4,698
8.5% Senior Debentures due 2029
Debt
Outstanding principal	287
Total consolidated debt	$ 286	286
Debt instrument interest rate	8.50%
8.25% Senior Debentures due 2030
Debt
Outstanding principal	$ 505
Total consolidated debt	$ 503	503
Debt instrument interest rate	8.25%
4% Exchangeable Senior Debentures due 2029
Debt
Outstanding principal	$ 352
Total consolidated debt	$ 162	101
Debt instrument interest rate	4.00%
3.75% Exchangeable Senior Debentures due 2030
Debt
Outstanding principal	$ 428
Total consolidated debt	$ 192	118
Debt instrument interest rate	3.75%
QVC | QVC 4.85% Senior Secured Notes due 2024
Debt
Total consolidated debt		423
Debt instrument interest rate	4.85%
QVC | QVC 4.45% Senior Secured Notes due 2025
Debt
Outstanding principal	$ 586
Total consolidated debt	$ 585	585
Debt instrument interest rate	4.45%
QVC | QVC 4.75% Senior Secured Notes due 2027
Debt
Outstanding principal	$ 575
Total consolidated debt	$ 575	575
Debt instrument interest rate	4.75%
QVC | QVC 4.375% Senior Secured Notes due 2028
Debt
Outstanding principal	$ 500
Total consolidated debt	$ 500	500
Debt instrument interest rate	4.375%
QVC | QVC 5.45% Senior Secured Notes due 2034
Debt
Outstanding principal	$ 400
Total consolidated debt	$ 399	399
Debt instrument interest rate	5.45%
QVC | QVC 5.95% Senior Secured Notes due 2043
Debt
Outstanding principal	$ 300
Total consolidated debt	$ 300	300
Debt instrument interest rate	5.95%
QVC | QVC 6.375% Senior Secured Notes due 2067
Debt
Outstanding principal	$ 225
Total consolidated debt	$ 225	225
Debt instrument interest rate	6.375%
QVC | QVC 6.25% Senior Secured Notes due 2068
Debt
Outstanding principal	$ 500
Total consolidated debt	$ 500	500
Debt instrument interest rate	6.25%
QVC | QVC Senior Secured Credit Facility
Debt
Outstanding principal	$ 1,295
Total consolidated debt	$ 1,295	$ 857

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Long-Term Debt - Narrative (Details)	3 Months Ended
	Mar. 31, 2024
3.75% Exchangeable Senior Debentures due 2030
Debt
Interest rate (as a percent)	3.75%
4% Exchangeable Senior Debentures due 2029
Debt
Interest rate (as a percent)	4.00%
QVC | QVC senior secured notes
Debt
Leverage ratio	3.5
QVC | QVC 4.45% Senior Secured Notes due 2025
Debt
Interest rate (as a percent)	4.45%
QVC | QVC 4.85% Senior Secured Notes due 2024
Debt
Interest rate (as a percent)	4.85%
QVC | QVC 6.375% Senior Secured Notes due 2067
Debt
Interest rate (as a percent)	6.375%
QVC | QVC 6.25% Senior Secured Notes due 2068
Debt
Interest rate (as a percent)	6.25%

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Long-Term Debt - Credit Facility (Details) - Amendment No. 5 Credit Facility - USD ($) $ in Millions	Jun. 20, 2023	Oct. 27, 2021	Mar. 31, 2024	Mar. 31, 2023
SOFR | Minimum
Debt
Debt instrument, basis spread on variable rate	1.25%
SOFR | Maximum
Debt
Debt instrument, basis spread on variable rate	1.625%
QVC
Debt
Maximum borrowing capacity		$ 3,250
Remaining borrowing capacity			$ 1,866
Interest rate (as a percent)			6.80%	6.30%
QVC | Alternate Base Rate | Minimum
Debt
Debt instrument, basis spread on variable rate		0.25%
QVC | Alternate Base Rate | Maximum
Debt
Debt instrument, basis spread on variable rate		0.625%
QVC | LIBOR | Minimum
Debt
Debt instrument, basis spread on variable rate		1.25%
QVC | LIBOR | Maximum
Debt
Debt instrument, basis spread on variable rate		1.625%
QVC | Letter of Credit
Debt
Maximum borrowing capacity		$ 450
Percentage of sub-limit		50.00%
Zulily
Debt
Repayments of line of credit		$ 80

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Long-Term Debt - Debt Securities That Are Not Reported At Fair Value (Details) $ in Millions	Mar. 31, 2024 USD ($)
Senior debentures
Debt
Fair value of debt securities that are not reported at fair value	$ 480
QVC senior secured notes
Debt
Fair value of debt securities that are not reported at fair value	$ 2,347

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Preferred Stock (Details) - 8.0% Series A Cumulative Redeemable Preferred Stock $ / shares in Units, $ in Millions		3 Months Ended
	Sep. 14, 2020 $ / shares	Mar. 31, 2024 USD ($) item shares
Preferred Stock
Preferred stock dividend rate, percentage	8.00%
Preferred stock par value | $ / shares	$ 0.01
Preferred stock authorized		13,500,000
Preferred shares issued		12,723,161
Preferred shares outstanding		12,723,161
Dividend redemption period	30 days
Liquidation preference per share | $ / shares	$ 100
Minimum liquidation price excess for certain director election rights		25.00%
Number of consecutive dividend periods without dividends that will certain director elections rights | item		2
On or after the fifth anniversary of the Original Issue Date but prior to its sixth anniversary
Preferred Stock
Redemption price	4.00%
On or after the sixth anniversary of the Original Issue Date but prior to its seventh anniversary
Preferred Stock
Redemption price	2.00%
On or after the seventh anniversary of the Original Issue Date
Preferred Stock
Redemption price	0.00%
Level 1
Preferred Stock
Fair value of the Preferred Stock | $		$ 633

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Commitments and Contingencies - Fire at Rocky Mount Fulfillment Center (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Unusual or Infrequent Item, or Both [Line Items]
Gain on insurance proceeds received in excess of losses		$ 17
Proceeds from sale of fixed assets	$ 6	198
QVC Rocky Mount Fire | QVC
Unusual or Infrequent Item, or Both [Line Items]
Accumulated Fire Related Costs			$ 439
Accumulated fire related costs not reimbursable			119
Cumulative insurance proceeds		55	660
Gain on insurance proceeds received in excess of losses		15	208
Insurance proceeds received for inventory loss			280
Insurance proceeds received for business interruption losses			210
Proceeds from sale of fixed assets		15	$ 19
Gain on sale of assets		13
Fire Related Costs		$ 11

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Commitments and Contingencies - Restructuring (Details) - Workforce reduction $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
QVC
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 13
Zulily
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 4

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Commitments and Contingencies - Gain on Sale Leaseback Transaction (Details) $ in Millions	1 Months Ended		3 Months Ended
	Feb. 29, 2024 USD ($)	Jan. 31, 2023 USD ($) item property	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Oct. 31, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Proceeds from sale of fixed assets			$ 6	$ 198
Sale leaseback gain			1	113
Operating lease right-of-use assets			629		$ 635
Operating lease liabilities			$ 617		$ 615
Foreign Exchange Forward
Lessee, Lease, Description [Line Items]
Derivative, notional amount						$ 167
Payment for net cash settlement of derivative		$ 12
QVC
Lessee, Lease, Description [Line Items]
Number of properties sold | property		2
Initial term of lease (in years)		20 years
Operating lease, existence of option to extend		true
Maximum number of consecutive terms eligible for extension | item		4
Renewal term		5 years
QVC | German Facility
Lessee, Lease, Description [Line Items]
Proceeds from sale of fixed assets	$ 6	$ 102
Initial term of lease (in years)			2 years
Sale leaseback gain	$ 1			69
Operating lease right-of-use assets			$ 1	42
Operating lease liabilities			$ 1	42
QVC | United Kingdom Facility
Lessee, Lease, Description [Line Items]
Proceeds from sale of fixed assets		$ 80
Sale leaseback gain				44
Operating lease right-of-use assets				32
Operating lease liabilities				$ 32

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Information About Qurate Retail's Operating Segments - Disaggregated revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregated revenue by segment
Total revenue, net	$ 2,342	$ 2,644
Corporate and other
Disaggregated revenue by segment
Total revenue, net		192
QxH | Operating Segments
Disaggregated revenue by segment
Total revenue, net	1,539	1,601
QVC International | Operating Segments
Disaggregated revenue by segment
Total revenue, net	572	592
CBI | Operating Segments
Disaggregated revenue by segment
Total revenue, net	231	259
Home
Disaggregated revenue by segment
Total revenue, net	1,015	1,136
Home | Corporate and other
Disaggregated revenue by segment
Total revenue, net		50
Home | QxH | Operating Segments
Disaggregated revenue by segment
Total revenue, net	589	635
Home | QVC International | Operating Segments
Disaggregated revenue by segment
Total revenue, net	237	237
Home | CBI | Operating Segments
Disaggregated revenue by segment
Total revenue, net	189	214
Apparel
Disaggregated revenue by segment
Total revenue, net	432	523
Apparel | Corporate and other
Disaggregated revenue by segment
Total revenue, net		70
Apparel | QxH | Operating Segments
Disaggregated revenue by segment
Total revenue, net	282	295
Apparel | QVC International | Operating Segments
Disaggregated revenue by segment
Total revenue, net	108	113
Apparel | CBI | Operating Segments
Disaggregated revenue by segment
Total revenue, net	42	45
Beauty
Disaggregated revenue by segment
Total revenue, net	368	388
Beauty | Corporate and other
Disaggregated revenue by segment
Total revenue, net		9
Beauty | QxH | Operating Segments
Disaggregated revenue by segment
Total revenue, net	239	246
Beauty | QVC International | Operating Segments
Disaggregated revenue by segment
Total revenue, net	129	133
Accessories
Disaggregated revenue by segment
Total revenue, net	249	293
Accessories | Corporate and other
Disaggregated revenue by segment
Total revenue, net		50
Accessories | QxH | Operating Segments
Disaggregated revenue by segment
Total revenue, net	201	192
Accessories | QVC International | Operating Segments
Disaggregated revenue by segment
Total revenue, net	48	51
Electronics
Disaggregated revenue by segment
Total revenue, net	123	129
Electronics | Corporate and other
Disaggregated revenue by segment
Total revenue, net		2
Electronics | QxH | Operating Segments
Disaggregated revenue by segment
Total revenue, net	108	110
Electronics | QVC International | Operating Segments
Disaggregated revenue by segment
Total revenue, net	15	17
Jewelry
Disaggregated revenue by segment
Total revenue, net	113	124
Jewelry | Corporate and other
Disaggregated revenue by segment
Total revenue, net		8
Jewelry | QxH | Operating Segments
Disaggregated revenue by segment
Total revenue, net	80	77
Jewelry | QVC International | Operating Segments
Disaggregated revenue by segment
Total revenue, net	33	39
Other revenue
Disaggregated revenue by segment
Total revenue, net	42	51
Other revenue | Corporate and other
Disaggregated revenue by segment
Total revenue, net		3
Other revenue | QxH | Operating Segments
Disaggregated revenue by segment
Total revenue, net	40	46
Other revenue | QVC International | Operating Segments
Disaggregated revenue by segment
Total revenue, net	$ 2	$ 2

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Information About Qurate Retail's Operating Segments - Performance Measures (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Adjusted OIBDA	$ 259	$ 179
Operating Segments | QxH
Segment Reporting Information [Line Items]
Adjusted OIBDA	185	139
Operating Segments | QVC International
Segment Reporting Information [Line Items]
Adjusted OIBDA	75	72
Operating Segments | CBI
Segment Reporting Information [Line Items]
Adjusted OIBDA	6	4
Corporate and Other
Segment Reporting Information [Line Items]
Adjusted OIBDA	$ (7)	$ (36)

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Information About Qurate Retail's Operating Segments - Other Information By Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Information about Qurate Retail's operating segments
Total assets	$ 10,981	$ 11,368
Capital expenditures	40
Operating Segments | QxH
Information about Qurate Retail's operating segments
Total assets	7,840
Capital expenditures	22
Operating Segments | QVC International
Information about Qurate Retail's operating segments
Total assets	1,793
Capital expenditures	10
Operating Segments | CBI
Information about Qurate Retail's operating segments
Total assets	555
Capital expenditures	8
Corporate and Other
Information about Qurate Retail's operating segments
Total assets	$ 793

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Information About Qurate Retail's Operating Segments - Reconciliation Of Segment Adjusted OIBDA To Earnings (Loss) From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Information About Qurate Retail's Operating Segments
Adjusted OIBDA	$ 259	$ 179
Stock-based compensation	(16)	(16)
Depreciation and amortization	(99)	(100)
Gain on sale of assets and sale leaseback transactions	1	113
Operating income (loss)	145	176
Interest expense	(117)	(94)
Interest and dividend income	12	11
Realized and unrealized gains (losses) on financial instruments, net	(7)	(32)
Other, net	(2)	4
Earnings (loss) before income taxes	$ 31	$ 65

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (1)	$ 20

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Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false