Qurate Retail Annual Report 2021

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FY2021 Annual Report · Qurate Retail

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2021 A N NUAL REP ORT

2022 PROXY STATEM ENT

TABLE OF CONTENTS

LETTER TO SHAREHOLDERS

STOCK PERFORMANCE

INVESTMENT SUMMARY

PROXY STATEMENT

FINANCIAL INFORMATION

ENVIRONMENTAL STATEMENT

FORWARD-LOOKING STATEMENTS

Certain statements in this Annual Report constitute forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements regarding business, product and marketing strategies; the novel coronavirus
(COVID-19); initiatives designed to better position our HSN and QVC U.S. businesses; growth of the livestream shopping
market; the impact of the fire at the Rocky Mountain fulfillment center; new service offerings; revenue growth at QVC; synergies;
the recoverability of goodwill and other intangible assets; projected sources and uses of cash; repayment of debt; fluctuations
in interest rates and foreign currency exchange rates; and the anticipated impact of certain contingent liabilities related to legal
and tax proceedings and other matters arising in the ordinary course of business. In particular, statements in our “Letter to
Shareholders” and under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and
“Quantitative and Qualitative Disclosures About Market Risk” contain forward-looking statements. Where, in any forward-
looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in
good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be
achieved or accomplished. The following include some but not all of the factors that could cause actual results or events to
differ materially from those anticipated:

• the impact of the COVID-19 pandemic and local, state and federal governmental responses to the pandemic on the

economy, our customers, our vendors and our businesses generally;

• customer demand for our products and services and our ability to attract new customers and retain existing customers

by anticipating customer demand and adapting to changes in demand;

• competitor responses to our products and services;

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

• the levels of online traffic 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;

• domestic and international economic and business conditions and industry trends, including the impact of the “Brexit”

withdrawal of the United Kingdom from the European Union;

• 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, 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), political crises, and other catastrophic events or other

events outside of our control;

• threatened terrorist attacks, political and economic unrest in international markets and ongoing military action around

the world; and

• fluctuations in foreign currency exchange rates.

ANNUAL REPORT 2021

FORWARD-LOOKING STATEMENTS (CONTINUED)

These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this Annual
Report, 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. When considering such forward-looking statements, you
should keep in mind any risk factors identified and other cautionary statements contained in this Annual Report and in our publicly
filed documents, including our most recent Forms 10-K and 10-Q. Such risk factors and statements describe circumstances
which could cause actual results to differ materially from those contained in any forward-looking statement.

ANNUAL REPORT 2021 5

LETTER TO SHAREHOLDERS

April 2022

Dear Fellow Shareholders,

Retail should have soul. At its best, retail not only provides an opportunity to acquire our material needs, but an
opportunity to explore, join, dream and connect. In much of retail, this human aspect is being lost. Qurate Retail
exists to battle against the algorithms depersonalizing and dehumanizing retail. As new generations of shoppers
emerge, they will look for personal and connected retail experiences, just as every generation has done before. We
will be there for them.

I, David, joined Qurate Retail, Inc. as President and CEO because I believe the live, human-centered shopping
experience that the company pioneered more than 30 years ago is more relevant today than ever. While the start
of the post-pandemic era has been difficult for the company, the world still needs what we deliver and the opportunity
for fulfilling our promise is massive. The story of the future of digital, human-centered retail is still being written,
and we are determined to be a primary author.

Working with our executive team and Board of Directors, we are setting ambitious goals to become an organization
with the focus and accountability to lead in a rapidly transforming retail and entertainment environment.

We are motivated by the opportunity but sobered by the work ahead. We believe that success will come in stages—
discipline and stabilization, followed by small, early, encouraging signs of success, followed by a return to growth
and establishing leadership in streaming and digital commerce. Success will be measured by months and quarters,
not days and weeks. It starts with assembling the right executive and leadership teams to drive change. We have
already advanced initiatives to chart a winning course in digital innovation, which is a key ingredient to return to
growth.

Here are some highlights:

Broad-based organization restructure with clear assignment of responsibility for our flagship
vCommerce brands—QVC US and HSN

On March 2, 2022, we announced a new organization structure to support a more focused and agile operating
environment, with leadership assignments designed to drive our turnaround efforts, simplify decision making, and
deliver on our value proposition to the customer and our stakeholders.

QVC US and HSN will now separately have control over critical resources (Merchandising, Planning & Programming,
Brand Marketing, Broadcast, and eCommerce) to further differentiate a distinct brand and customer voice.

We felt this was a critical step to establish clearer lines of accountability and accelerate decision making, while
maintaining the cost and scale efficiencies gained through the prior integration of the businesses. This new approach
positions QVC US and HSN for success as we deepen the differentiated brand experiences, accelerate and
transform our leadership in vCommerce, and drive continuous operational improvement.

As part of QVC US’s and HSN’s new streamlined operating model, we put in place dedicated leaders with their
own teams to run each brand. We named Mike Fitzharris as President, QVC US, and promoted Rob Muller to
President, HSN.

Mike and Rob have been successful in running large areas of the business in the past. As part of their appointments,
they now have greater accountability, with a mission to stabilize these brands, master the value propositions for
their specific customers, refresh the product portfolio, and bring us to a level of effective execution at both QVC US
and HSN.

Our new organizational structure supports a greater focus on regaining revenue and customer growth. However,
while QVC US and HSN will operate independently, we expect to leverage existing cost and operating synergies,
largely in back-office functions, customer contact centers and supply chain operations.

Accelerating streaming through new organizational structure

The livestream shopping market in the US is expected to grow steadily, accounting for $35 billion in sales and
3.3% of all US eCommerce by 20241. We are well-positioned to lead in this space and are gearing up to capitalize
on this growing sector.

We created a new business unit to accelerate our efforts in vCommerce and streaming innovation.

Coresight Research as published in retailtouchpoints.com on October 6, 2021.

ANNUAL REPORT 2021

LETTER TO SHAREHOLDERS (CONTINUED)

As a source of innovation and a catalyst for growth, this new unit will host a newly established streaming business,
focused on elevating our over-the-top (“OTT”) and streaming services as a strategic priority. It will also house our
innovation efforts around live streaming services and new platforms. Notably, while this will be a global Qurate Retail
business unit, initial efforts will focus on our flagship brands in the US.

In 2021, QVC made incredible progress in expanding our digital distribution footprint. Over the course of the year,
we launched or expanded our presence on YouTube TV, Xfinity X1 & Xfinity Flex App, Sling TV, and Google Play Store
for Android TVs. With distribution secured, our strategic focus now turns to engagement and conversion. Sales
from these nascent digital platforms are still relatively small. However, when customers do convert on a streaming
platform, they have proven to be as “sticky” as our traditional linear TV customers. This is a key opportunity.

Mary Campbell, who previously held the role of QxH Chief Content, Digital and Platforms Officer, has been named
President of this new business unit. She has a strong leadership team with deep institutional knowledge of the
business and a focus on critical areas for innovation. Within this business unit, we are rapidly exploring new business
models, launching new businesses, and extending our lead in OTT video commerce.

Sustaining performance internationally

While QVC International faced product scarcity and supply chain constraints in 2021, particularly in its European
businesses, it still generated solid revenue and adjusted OIBDA growth.

QVC International’s leadership has set a strong strategic vision and demonstrated the ability to execute on its
initiatives over time. This performance validates that our core video commerce model continues to resonate with
consumers around the world and across cultures. We remain confident in this business’s ability to sustain growth.

Stabilizing Zulily and beginning its turnaround

Zulily is one of the original pioneers of digitally native discovery-driven commerce. The model drives excitement
and engagement at scale for its 4.6 million customers. However, it has been hard hit by recent external macro events.

Core to Zulily’s success is the ability to secure excess inventory of iconic nationally recognized brands and
emerging new brands and offer curated special deals to customers. The lack of surplus inventory due to supply
chain disruptions has had a profound impact on the business. Additionally, Zulily has an over-weighted reliance on
digital marketing to generate new customer growth, and this form of marketing is experiencing historically high
levels of inflation coupled with reduced efficiency due to recent customer privacy restrictions.

While abnormal headwinds such as these may persist for the near term, we are taking significant steps toward
stabilizing the business. In March 2022, digital retail veteran Terry Boyle was appointed as President and CEO of
Zulily. Terry brings a blend of deep retail, brand and eCommerce experience, along with entrepreneurial instincts and
a track record of driving growth. We are working prudently to develop and implement a compelling strategy for
Zulily with both short- and long-term business goals in mind.

Continued investment in Cornerstone’s future

Cornerstone had exemplary performance in 2021 and we are excited about the future of these aspirational lifestyle
brands.

We generated record revenue and adjusted OIBDA growth across each brand, primarily due to continued strong
customer demand for outdoor living and interior designs within its home brands (Frontgate, Ballard Designs and
Grandin Road) and apparel and home textile products at Garnet Hill.

We continued our retail expansion with the opening of a new Ballard Designs store in Houston. Given the success
of our expansion over the past two years, we intend to open three additional retail stores in 2022.

We’re confident we can continue to build on Cornerstone’s stellar performance and that we can capitalize on the
strong growth of its passionate customer base.

Pushing forward with a strong team to stabilize the business and return to growth

We are clear-eyed that this is a turnaround. But we also know that Qurate Retail sits atop one of the most powerful
sets of capabilities and untapped potential opportunities of any company of a similar size. The environment is
challenging and the work is hard, but we are already starting to take action to restore this storied company to
prominence.

ANNUAL REPORT 2021 7

We thank you for your support and look forward to providing updates on our progress. We hope to ‘see’ many of
you virtually at our Investor Event which will be live streamed from our headquarters on June 27th.

Sincerely,

David Rawlinson II
President & Chief Executive Officer

Gregory B. Maffei
Executive Chairman of the Board

ANNUAL REPORT 2021

STOCK PERFORMANCE

The following graph compares the percentage change in the cumulative total stockholder return on an investment
in Qurate Retail Series A and Series B common stock (formerly referred to as the Series A and Series B QVC Group
common stock) from December 31, 2016 through December 31, 2021 to the percentage change in the cumulative
total return on the S&P 500 Index and the S&P 500 Retail Index. This chart includes the impact of (i) the special
dividend of 0.03 of a share of Qurate Retail’s newly-created preferred stock per share of common stock which was
distributed to shareholders in September 2020, including the ongoing distributions of quarterly dividends paid to
preferred stockholders and assuming reinvestment of such dividends into Qurate Retail’s preferred stock, and (ii) the
distribution of special cash dividends, assuming reinvestment of the cash proceeds into our common stock.

QURATE RETAIL COMMON STOCK VS. S&P 500 and S&P 500 RETAIL INDICES
12/31/16 TO 12/31/21

$250

$200

$150

$100

$50

Dec-16

Dec-17

Dec-18

Dec-19

Dec-20

Dec-21

Qurate Retail Series A

Qurate Retail Series B

S&P 500 Index

S&P 500 Retail Index

Qurate Retail Series A
Qurate Retail Series B
S&P 500 Index
S&P 500 Retail Index

12/31/16

$100.00
$100.00
$100.00
$100.00

12/31/17

$122.22
$121.23
$119.42
$105.47

12/31/18

$ 97.70
$ 91.21
$111.97
$109.31

12/31/19

$ 42.19
$ 41.93
$144.31
$147.81

12/31/20

$ 92.73
$ 90.95
$167.77
$181.53

12/31/21

$ 78.42
$ 77.37
$212.89
$226.93

Note: Trading data for the Series B shares is limited as they are thinly traded.

ANNUAL REPORT 2021 9

INVESTMENT SUMMARY

(Based on publicly available information as of January 31, 2022) www.qurateretail.com/about/asset-list

The following table sets forth some of Qurate Retail, Inc.’s assets which may be held directly and indirectly through
partnerships, joint ventures, common stock investments and/or instruments convertible into common stock.
Ownership percentages in the table are approximate and, where applicable, assume conversion to common stock
by Qurate Retail, Inc. and, to the extent known by Qurate Retail, Inc., other holders. In some cases, Qurate
Retail, Inc.’s interest may be subject to buy/sell procedures, repurchase rights or dilution.

QURATE RETAIL, INC.

ENTITY

DESCRIPTION OF OPERATING BUSINESS

Comscore, Inc.

Cornerstone
Brands

Green energy
investments

LIC Sound, LLC

Liberty Technology
Venture Capital II,
LLC

NetBase Solutions,
Inc.

QVC, Inc.

Zulily, LLC

Global information and analytics company that
measures advertising, content, and the consumer
audiences across media platforms.
Cornerstone is comprised of interactive, aspirational
home and apparel lifestyle brands including Frontgate,
Ballard Designs, Garnet Hill and Grandin Road.

Investments in various clean energy operations.

Venture investment fund focused on technology
companies.

Investment fund focused on Israeli technology
companies.

Social media analytics platform that global companies
use to run brands, build businesses, and connect with
consumers every second. NetBase platform processes
millions of social media posts daily for actionable
business insights for marketing research, customer
service, sales, PR, and product innovation.
QVC, Inc. is a world leader in video commerce
(“vCommerce”), which includes video-driven shopping
across linear TV, ecommerce sites, digital streaming and
social platforms. QVC offers an ever-changing collection
of familiar brands and fresh new products—from home
and fashion to beauty, electronics, and jewelry—and
connects shoppers to interesting personalities, engaging
stories, and award-winning customer service. QVC, Inc.
includes QVC US, QVC International and HSN.

Zulily is an online retailer that launches a new store on
its mobile apps and website every day. By creating an
immersive and entertaining shopping experience
featuring hundreds of sales and thousands of products
at great prices, Zulily invites shoppers around the world
to discover a wide assortment of curated products for
themselves, their families, and their homes.

ATTRIBUTED
SHARE
COUNT(1)
(in millions)

ATTRIBUTED
OWNERSHIP(2)

27.5

15.9%(3)

N/A

100%

Various(4)

80%

N/A

3.3%

N/A

100%

N/A

100%

Applicable only for publicly-traded entities.

Note: Table above includes holdings with owned asset value greater than $5 million.
1)
2) Represents undiluted ownership interest.
3) Comscore ownership on an as-converted basis based on outstanding shares as of February 24, 2022.
4)

Includes portfolio of assets with varying non-controlling ownership percentages.

ANNUAL REPORT 2021

QURATE RETAIL, INC.

12300 Liberty Boulevard
Englewood, Colorado 80112
(720) 875-5300

DEAR FELLOW STOCKHOLDER:

You are cordially invited to attend the 2022 annual meeting of stockholders of
Qurate Retail, Inc. (Qurate Retail) to be held at 8:15 a.m., Mountain time, on
June 14, 2022. The annual meeting will be held via the Internet and will be a
completely virtual meeting of stockholders. You may attend the meeting, submit
questions and vote your shares electronically during the meeting via the Internet
by visiting www.virtualshareholdermeeting.com/QRI2022. To enter the annual
meeting, you will need the 16-digit control number that is printed on your Notice of
Internet Availability of Proxy Materials or proxy card. We recommend logging in at
least fifteen minutes before the meeting to ensure that you are logged in when the
meeting starts. Online check-in will start shortly before the meeting on June 14,
2022.

At the annual meeting, you will be asked to consider and vote on the proposals
described in the accompanying notice of annual meeting and proxy statement, as
well as on such other business as may properly come before the meeting.

Your vote is important, regardless of the number of shares you own. Whether or
not you plan to attend the annual meeting, please read the enclosed proxy
materials and then promptly vote via the Internet or telephone or by completing,
signing and returning the proxy card if you received a paper copy of the proxy
materials by mail. Doing so will not prevent you from later revoking your proxy or
changing your vote at the meeting.

Thank you for your cooperation and continued support and interest in Qurate
Retail.

Very truly yours,

David Rawlinson II
President and Chief Executive Officer
April 26, 2022

The Notice of Internet Availability of Proxy Materials is first being mailed on or
about May 2, 2022, and the proxy materials relating to the annual meeting will first
be made available on or about the same date.

NOTICE OF 2022 ANNUAL MEETING OF
STOCKHOLDERS

Notice is hereby given of the annual meeting of stockholders of Qurate Retail, Inc. (Qurate Retail). The annual meeting will be
held via the Internet and will be a completely virtual meeting of stockholders.

MEETING DATE & TIME

VIRTUAL MEETING LOCATION

June 14, 2022,
at 8:15 am MT

You may attend the meeting, submit questions and vote your
shares electronically during the meeting via the Internet by
visiting www.virtualshareholdermeeting.com/QRI2022.

RECORD DATE

5:00 p.m., New York City
time, on April 18, 2022

To enter the annual meeting, you will need the 16-digit control number that is printed on your Notice of Internet Availability of
Proxy Materials or proxy card. We recommend logging in at least fifteen minutes before the meeting to ensure that you are logged
in when the meeting starts. Online check-in will start shortly before the meeting on June 14, 2022.

At the annual meeting, you will be asked to consider and vote on the following proposals. Our board of directors has unanimously
approved each proposal for inclusion in the proxy materials.

PROPOSAL

1 A proposal (which we refer to as the election of directors proposal) to elect John C.

Malone, M. Ian G. Gilchrist and Andrea L. Wong to continue serving as Class III members of
our board until the 2025 annual meeting of stockholders or their earlier resignation or
removal.

BOARD
RECOMMENDATION

FOR each director
nominee

2 A proposal (which we refer to as the auditors ratification proposal) to ratify the selection of

KPMG LLP as our independent auditors for the fiscal year ending December 31, 2022.

FOR

You may also be asked to consider and vote on such other business as may properly come before the annual meeting.

PAGE

We describe the proposals in more detail in the accompanying proxy statement. We encourage you to read the proxy statement
in its entirety before voting.

YOUR VOTE IS IMPORTANT. Voting promptly, regardless of the number of shares you own, will aid us in reducing the
expense of any further proxy solicitation in connection with the annual meeting. You may vote electronically during the annual
meeting or by proxy prior to the meeting by telephone, via the Internet or by mail:

Internet

Virtual Meeting

Phone

Mail

Vote online at
www.proxyvote.com

Vote live during the annual
meeting at the URL above

Vote by calling
1-800-690-6903 (toll free) in
the United States or Canada

Vote by returning a properly
completed, signed and dated
proxy card

WHO MAY VOTE

WHO MAY NOT VOTE

Holders of record of our Series A common stock, par value
$0.01 per share, and our Series B common stock, par value
$0.01 per share, as of the record date will be entitled to
notice of the annual meeting and to vote at the annual
meeting or any adjournment or postponement thereof.

These holders will vote together as a single class on each
proposal.

Holders of record of our 8% Series A Cumulative
Redeemable Preferred Stock, par value $0.01 per share
(QRTEP), are not entitled to any voting powers, except as
specified in the Certificate of Designations relating to
QRTEP or as required by Delaware law, and may not vote
on the proposals to be presented at the annual meeting.

A list of stockholders entitled to vote at the annual meeting will be available at our offices at 12300 Liberty Boulevard, Englewood,
Colorado 80112 for review by our stockholders for any purpose germane to the annual meeting for at least ten days prior to the
annual meeting. If you have any questions with respect to accessing this list, please contact Qurate Retail Investor Relations at
(866) 876-0461.

Important Notice Regarding the Availability of Proxy Materials For the Annual Meeting of Stockholders to be Held on
June 14, 2022: our Notice of Annual Meeting of Stockholders, Proxy Statement and 2021 Annual Report to Stockholders
are available at www.proxyvote.com.

By order of the board of directors,

Katherine C. Jewell

Assistant Vice President and Secretary
Englewood, Colorado
April 26, 2022

WHETHER OR NOT YOU PLAN TO ATTEND THE ANNUAL MEETING, PLEASE VOTE PROMPTLY VIA TELEPHONE
OR ELECTRONICALLY VIA THE INTERNET. ALTERNATIVELY, PLEASE COMPLETE, SIGN AND RETURN THE PROXY
CARD IF YOU RECEIVED A PAPER COPY OF THE PROXY MATERIALS BY MAIL.

Table of Contents

PROXY SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . .

About Our Company . . . . . . . . . . . . . . . . . . . . . . . .

2021 Year in Review . . . . . . . . . . . . . . . . . . . . . . . .

Voting Roadmap . . . . . . . . . . . . . . . . . . . . . . . . . .

Environmental, Social and Governance Highlights . . . . .

Executive Compensation Highlights . . . . . . . . . . . . . .

Proxy Statement for Annual Meeting of Stockholders . . .

THE ANNUAL MEETING . . . . . . . . . . . . . . . . . . . . . .

Notice and Access of Proxy Materials . . . . . . . . . . . . .

Electronic Delivery . . . . . . . . . . . . . . . . . . . . . . . . .

Time, Place and Date . . . . . . . . . . . . . . . . . . . . . . .

Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recommendation of Our Board of Directors . . . . . . . .

Quorum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Who May Vote . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Votes Required . . . . . . . . . . . . . . . . . . . . . . . . . . .

Votes You Have . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . .

Number of Holders . . . . . . . . . . . . . . . . . . . . . . . . .

Voting Procedures for Record Holders . . . . . . . . . . . .

Voting Procedures for Shares Held in Street Name . . . .

Voting Procedures for Shares Held in the Liberty Media
401(k) Savings Plan . . . . . . . . . . . . . . . . . . . . . . . .

Revoking a Proxy . . . . . . . . . . . . . . . . . . . . . . . . . .

Solicitation of Proxies . . . . . . . . . . . . . . . . . . . . . . .

Other Matters to Be Voted on at the Annual Meeting . . .

Stockholder Proposals . . . . . . . . . . . . . . . . . . . . . .

Additional Information . . . . . . . . . . . . . . . . . . . . . . .

PROPOSAL 1 – THE ELECTION OF DIRECTORS
PROPOSAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Board of Directors Overview . . . . . . . . . . . . . . . . . . .

Vote and Recommendation . . . . . . . . . . . . . . . . . . .

Our Board at a Glance . . . . . . . . . . . . . . . . . . . . . .

Director Skills and Experience . . . . . . . . . . . . . . . . .

Nominees for Election as Directors . . . . . . . . . . . . . .

Directors Whose Term Expires in 2023 . . . . . . . . . . . .

Directors Whose Term Expires in 2024 . . . . . . . . . . . .

CORPORATE GOVERNANCE . . . . . . . . . . . . . . . . . .

Director Independence . . . . . . . . . . . . . . . . . . . . . .

Board Composition . . . . . . . . . . . . . . . . . . . . . . . . .

Board Classification . . . . . . . . . . . . . . . . . . . . . . . .

Board Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . .

Board Leadership Structure . . . . . . . . . . . . . . . . . . .

Board Role in Risk Oversight

. . . . . . . . . . . . . . . . . .

Code of Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Family Relationships; Legal Proceedings . . . . . . . . . .

Committees of the Board of Directors . . . . . . . . . . . .

Board Criteria and Director Candidates . . . . . . . . . . . .

Board Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . .

Director Attendance At Annual Meetings . . . . . . . . . . .

Stockholder Communication with Directors . . . . . . . . .

Executive Sessions . . . . . . . . . . . . . . . . . . . . . . . . .

DIRECTOR COMPENSATION . . . . . . . . . . . . . . . . . . .

Nonemployee Directors . . . . . . . . . . . . . . . . . . . . . .

John C. Malone . . . . . . . . . . . . . . . . . . . . . . . . . . .

Director Compensation Table . . . . . . . . . . . . . . . . . .

PROPOSAL 2 – THE AUDITORS RATIFICATION
PROPOSAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Vote and Recommendation . . . . . . . . . . . . . . . . . . .

Audit Fees and All Other Fees . . . . . . . . . . . . . . . . . .

Policy on Pre-Approval of Audit and Permissible
Non-Audit Services of Independent Auditor . . . . . . . . .

AUDIT COMMITTEE REPORT . . . . . . . . . . . . . . . . . .

EXECUTIVE OFFICERS . . . . . . . . . . . . . . . . . . . . . .

EXECUTIVE COMPENSATION . . . . . . . . . . . . . . . . . .

Compensation Discussion and Analysis . . . . . . . . . . .

Summary Compensation Table . . . . . . . . . . . . . . . . .

Executive Compensation Arrangements . . . . . . . . . . .

Grants of Plan Based Awards . . . . . . . . . . . . . . . . . .

Outstanding Equity Awards at Fisclar Year-End . . . . . .

Option Exercises and Stock Vested . . . . . . . . . . . . . .

Nonqualified Deferred Compensation Plans . . . . . . . . .

Potential Payments Upon Termination or Change in
Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Benefits Payable Upon Termination or Change in Control

Equity Compensation Plan Information . . . . . . . . . . . .

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT . . . . . . . . . . . . . . . . .

Security Ownership of Certain Beneficial Owners . . . . .

Security Ownership of Management

. . . . . . . . . . . . .

Hedging Disclosure . . . . . . . . . . . . . . . . . . . . . . . .

Changes in Control . . . . . . . . . . . . . . . . . . . . . . . . .

CERTAIN RELATIONSHIPS AND RELATED PARTY
TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . .

Malone Stock Exchange and Maffei Arrangements . . . .

PROXY SUMMARY

Proxy Summary

This summary highlights information contained elsewhere in this proxy statement. This summary does not contain all
information you should consider. Please read the entire proxy statement carefully before voting.

What’s new with this year’s proxy statement?

• 2021 Year in Review

• Voting Roadmap on pages 3 – 4

• Environmental, Social and Governance Highlights on page 5

• Additional information about our board of directors, including a look at our board members’ skills and experience on

pages 13 – 14

ABOUT OUR COMPANY

Qurate Retail, Inc. is a Fortune 500 company comprised of seven leading retail brands—QVC, HSN, Zulily, Ballard
Designs, Frontgate, Garnet Hill, and Grandin Road (collectively, Qurate Retail Group)—all dedicated to providing a more
human way to shop. Qurate Retail Group is the largest player in video commerce, which includes video-driven shopping
across linear TV, ecommerce sites, digital streaming, and social platforms. The retailer reaches more than 200 million
homes worldwide via 14 television networks and reaches millions more via multiple streaming services, social pages, mobile
apps, websites, print catalogs, and in-store destinations.

2021 YEAR IN REVIEW

• David Rawlinson II assumed role of President in August 2021 and CEO in October 2021 and joined the board of

directors in January 2022

• Expanded digital platform distribution with launch of YouTube TV (January 2021), Vizio SmartCast (March 2021),
TIVO+ (April 2021), Xfinity X1 & Xfinity Flex App (June 2021), Sling TV (August 2021) and Google Play Store for
Android TVs (September 2021)

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PROXY SUMM ARY

• Distributed special cash dividend of $1.25 per common share in November 2021 for an aggregate dividend of

approximately $488 million

• Qurate Retail, Inc. revenue decreased 1% in constant currency(1) for full-year 2021

◦ QxH (QVC US and HSN) revenue decreased 3% and Zulily revenue decreased 11%

◦ QVC International revenue increased 2% in constant currency and Cornerstone revenue increased 16% with

record revenue growth at each of its brands

(1) For a definition of constant currency, see our company’s Current Report on Form 8-K, furnished on February 25, 2022.

Our Defining Attributes

FORWARD-LOOKING

NIMBLE

We take advantage of the benefits and minimize the risks
associated with the digital transition in the industries in
which we invest.

We structure our team to allow us to move quickly when
opportunities arise, and we can be creative in our deal
structures.

FINANCIALLY SOPHISTICATED

LONG-TERM FOCUSED

We have experience in mergers, divestitures, investing,
capital deployment, credit analysis and setting capital
structures.

We take a long-term, strategic view in our various
operating businesses and are less concerned with
short-term bouts of volatility.

We think like owners and are focused on long-term gains rather than short-term results. The compensation structure of
our management team is closely tied to the long-term performance of our stock.

STOCKHOLDER CENTRIC

2 / 2022 PROXY STATEMENT

PROXY SUMMARY

VOTING ROADMAP

Proposal 1: Election of Directors Proposal (see page 12)

OUR BOARD RECOMMENDS A VOTE FOR EACH DIRECTOR NOMINEE

The Board of Directors recommends that you vote FOR each director nominee. These individuals
bring a range of relevant experiences and overall diversity of perspectives that is essential to good
governance and leadership of our company. See pages 12 – 20 for further information.

OUR DIRECTOR NOMINEES

JOHN C. MALONE

Director Since: 1994

Committee(s): Executive

Mr. Malone, as President of Tele-Communications, Inc. (TCI), co-founded our former parent company and is considered
one of the preeminent figures in the media and telecommunications industry. He is well known for his sophisticated
problem solving and risk assessment skills.

M. IAN G. GILCHRIST

Director Since: 2009

Independent Director

Committee(s): Audit (Chair)

Mr. Gilchrist’s field of expertise is in the media and telecommunications sector, having been involved with companies in
this industry during much of his 32 years as an investment banker. Mr. Gilchrist brings to our board significant financial
expertise and a unique perspective on the company and the media and telecommunications sector. He is also an
important resource with respect to the financial services firms that our company engages from time to time.

ANDREA L. WONG

Director Since: 2010

Independent Director

Committee(s): Compensation, Nominating and Corporate Governance (Chair)

Ms. Wong brings to our board significant experience in the media and entertainment industry, having an extensive
background in media programming across a variety of platforms, as well as executive leadership experience with the
management and operation of companies in the entertainment sector. Her experience with programming development
and production, brand enhancement and marketing brings a pragmatic and unique perspective to our board. Her
professional expertise, combined with her continued involvement in the media and entertainment industry, makes her a
valuable member of our board.

CURRENT BOARD OF DIRECTORS AT A GLANCE

INDEPENDENCE

GENDER/DEMOGRAPHIC DIVERSITY

60%

40%

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PROXY SUMM ARY

BOARD AND CORPORATE GOVERNANCE HIGHLIGHTS

Effective Independent Oversight

Strong Governance Practices

• Majority of our directors are independent

• Succession planning

• Separate Chairman of the Board and Chief Executive

• Stockholder access to the director nomination process

Officer

• Executive sessions of independent directors held

without the participation of management

• Independent directors chair the audit, compensation

• Corporate Governance Guidelines, Code of Business
Conduct and Ethics and various policies (including
Enterprise Risk Management Policy, Human Rights
Policy and Tax Policy) which are published online

and nominating and corporate governance committees

• Directors have unabridged access to senior

• Ability to engage with independent consultants or

advisors

• No compensation committee interlocks or insider

participation

management and other company employees

• Anonymous “whistleblowing” channels for any

concerns

• Well-established risk oversight process

• Leverages collaborative approach to enhancing ESG

practices

Proposal 2: Auditors Ratification Proposal (see page 34)

OUR BOARD RECOMMENDS A VOTE FOR THIS PROPOSAL
The Board of Directors recommends that you vote FOR this proposal because KPMG LLP is an
independent firm with few ancillary services and reasonable fees, and has significant industry and
financial reporting expertise. See pages 34 – 35 for further information.

4 / 2022 PROXY STATEMENT

ENVIRONMENTAL, SOCIAL AND GOVERNANCE HIGHLIGHTS
Qurate Retail participates in a collaborative approach to Environmental, Social, and Governance (ESG) issues. We
believe that this approach allows us to have the largest impact, and unlock the greatest value, as it enables us to draw on
the partnership spanning our company, Liberty Media Corporation (Liberty Media), Liberty TripAdvisor Holdings, Inc.
(Liberty TripAdvisor) and Liberty Broadband Corporation (Liberty Broadband), as well as with the portfolio of assets
within each of these public companies.

PROXY SUMMARY

Qurate Retail Group has a long-standing commitment to doing business the right way and creating positive change for all
the communities we touch. Qurate Retail Group’s corporate responsibility strategy builds on its materiality assessment,
which identified our core material topics based on extensive research and stakeholder engagement. These material
topics have been organized around three strategic pillars to demonstrate how our people, our networks and our brands all
support us in the pursuit of our corporate responsibility commitments as outlined at www.qurateretailgroup.com.

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PROXY SUMM ARY

EXECUTIVE COMPENSATION HIGHLIGHTS

Compensation Philosophy

Our compensation philosophy seeks to align the interests of the named executive officers with those of our
stockholders, with the ultimate goal of appropriately motivating our executives to increase long-term
stockholder value.

To that end, the compensation packages provided to the named executive officers include significant performance-based
bonuses and significant equity incentive awards, including equity awards that vest multiple years after initial grant.

WHAT WE DO

WHAT WE DO NOT DO

• A significant portion of compensation is at-risk and

• Our compensation practices do not encourage

performance-based.

excessive risk taking.

• Performance targets for our executives support the

• We do not provide tax gross-up payments in

long-term growth of the company.

connection with taxable income from perquisites.

• We have clawback provisions for equity-based

• We do not engage in liberal share recycling.

incentive compensation.

• We have stock ownership guidelines for our executive

officers.

• We review our executives’ base salaries on an annual

basis.

PROXY STATEMENT FOR ANNUAL MEETING OF STOCKHOLDERS

We are furnishing this proxy statement in connection with the board of directors’ solicitation of proxies for use at our 2022
Annual Meeting of Stockholders to be held at 8:15 a.m., Mountain time, on June 14, 2022, or at any adjournment or
postponement of the annual meeting. The annual meeting will be held via the Internet and will be a completely virtual
meeting of stockholders. You may attend the meeting, submit questions and vote your shares electronically during the
meeting via the Internet by visiting www.virtualshareholdermeeting.com/QRI2022. At the annual meeting, we will ask you
to consider and vote on the proposals described in the accompanying Notice of Annual Meeting of Stockholders. The
proposals are described in more detail in this proxy statement. We are soliciting proxies from holders of our Series A
common stock, par value $0.01 per share (QRTEA), and Series B common stock, par value $0.01 per share (QRTEB).
The holders of our 8% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (QRTEP), are not
entitled to any voting powers, except as specified in the Certificate of Designations relating to QRTEP or as required by
Delaware law, and may not vote on the proposals to be presented at the annual meeting. We refer to QRTEA and QRTEB
together as our common stock. We refer to our common stock together with QRTEP as our capital stock.

6 / 2022 PROXY STATEMENT

THE ANNUAL ME ET IN G

The Annual Meeting

NOTICE AND ACCESS OF PROXY MATERIALS

We have elected, in accordance with the Securities and Exchange Commission’s “Notice and Access” rule, to deliver a
Notice of Internet Availability of Proxy Materials (the Notice) to our stockholders and to post our proxy statement and our
annual report to our stockholders (collectively, the proxy materials) electronically. The Notice is first being mailed to our
stockholders on or about May 2, 2022. The proxy materials will first be made available to our stockholders on or about
the same date.

The Notice instructs you how to access and review the proxy materials and how to submit your proxy via the Internet. The
Notice also instructs you how to request and receive a paper copy of the proxy materials, including a proxy card or
voting instruction form, at no charge. We will not mail a paper copy of the proxy materials to you unless specifically requested
to do so.

ELECTRONIC DELIVERY

Registered stockholders may elect to receive future notices and proxy materials by e-mail. To sign up for electronic
delivery, go to www.proxyvote.com. Stockholders who hold shares through a bank, brokerage firm or other nominee may
sign up for electronic delivery when voting by Internet at www.proxyvote.com, by following the prompts. Also, stockholders
who hold shares through a bank, brokerage firm or other nominee may sign up for electronic delivery by contacting their
nominee. Once you sign up, you will not receive a printed copy of the notices and proxy materials, unless you request them.
If you are a registered stockholder, you may suspend electronic delivery of the notices and proxy materials at any time
by contacting our transfer agent, Broadridge, at (888) 789-8461 (outside the United States (626) 427-6421). Stockholders
who hold shares through a bank, brokerage firm or other nominee should contact their nominee to suspend electronic
delivery.

TIME, PLACE AND DATE

The annual meeting of stockholders is to be held at 8:15 a.m., Mountain time, on June 14, 2022. The annual meeting will
be held via the Internet and will be a completely virtual meeting of stockholders. You may attend the meeting, submit
questions and vote your shares electronically during the meeting via the Internet by visiting
www.virtualshareholdermeeting.com/QRI2022. To enter the annual meeting, you will need the 16-digit control number that
is printed on your Notice or proxy card. We recommend logging in at least fifteen minutes before the meeting to ensure
that you are logged in when the meeting starts. Online check-in will start shortly before the meeting on June 14, 2022.

PURPOSE

At the annual meeting, you will be asked to consider and vote on each of the following:

• the election of directors proposal, to elect John C. Malone, M. Ian G. Gilchrist and Andrea L. Wong to continue

serving as Class III members of our board until the 2025 annual meeting of stockholders or their earlier resignation
or removal; and

• the auditors ratification proposal, to ratify the selection of KPMG LLP as our independent auditors for the fiscal year

ending December 31, 2022.

You may also be asked to consider and vote on such other business as may properly come before the annual meeting,
although we are not aware at this time of any other business that might come before the annual meeting.

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THE ANNUAL ME ET IN G

RECOMMENDATION OF OUR BOARD OF DIRECTORS

Our board of directors has unanimously approved each of the proposals for inclusion in the proxy
materials and recommends that you vote “FOR” the election of each director nominee and “FOR”
the auditors ratification proposal.

QUORUM

In order to conduct the business of the annual meeting, a quorum must be present. This means that the holders of at
least a majority of the aggregate voting power represented by the shares of our common stock outstanding on the record
date and entitled to vote at the annual meeting must be represented at the annual meeting either in person or by proxy.
Virtual attendance at the annual meeting constitutes presence in person for purposes of a quorum at the meeting. For
purposes of determining a quorum, your shares will be included as represented at the meeting even if you indicate on your
proxy that you abstain from voting. If a broker, who is a record holder of shares, indicates on a form of proxy that the
broker does not have discretionary authority to vote those shares on a particular proposal or proposals, or if those shares
are voted in circumstances in which proxy authority is defective or has been withheld, those shares (broker non-votes)
will nevertheless be treated as present for purposes of determining the presence of a quorum. See “— Voting Procedures
for Shares Held in Street Name—Effect of Broker Non-Votes” below.

WHO MAY VOTE

Holders of shares of our common stock, as recorded in our stock register as of 5:00 p.m., New York City time, on April 18,
2022 (such date and time, the record date for the annual meeting), will be entitled to notice of the annual meeting and to
vote at the annual meeting or any adjournment or postponement thereof.

VOTES REQUIRED

Each director nominee who receives a plurality of the combined voting power of the outstanding shares of our common
stock present in person or represented by proxy at the annual meeting and entitled to vote on the election of directors at the
annual meeting, voting together as a single class, will be elected to office.

Approval of the auditors ratification proposal requires the affirmative vote of a majority of the combined voting power of
the outstanding shares of our common stock that are present in person or by proxy, and entitled to vote at the annual
meeting, voting together as a single class.

Virtual attendance at the annual meeting constitutes presence in person for purposes of each required vote.

VOTES YOU HAVE

At the annual meeting, holders of shares of QRTEA will have one vote per share and holders of shares of QRTEB will
have ten votes per share, in each case, that our records show are owned as of the record date. Holders of QRTEP will NOT
be eligible to vote at the annual meeting.

SHARES OUTSTANDING

As of the record date, 373,631,368 shares of QRTEA and 8,378,212 shares of QRTEB were issued and outstanding and
entitled to vote at the annual meeting.

NUMBER OF HOLDERS

There were, as of the record date, 2,221 and 59 record holders of QRTEA and QRTEB, respectively (which amounts do
not include the number of stockholders whose shares are held of record by banks, brokers or other nominees, but include
each such institution as one holder).

8 / 2022 PROXY STATEMENT

THE ANNUAL ME ET IN G

VOTING PROCEDURES FOR RECORD HOLDERS

Holders of record of our common stock as of the record date may vote via the Internet at the annual meeting or prior to
the annual meeting by telephone or through the Internet. Alternatively, if they received a paper copy of the proxy materials
by mail, they may give a proxy by completing, signing, dating and returning the proxy card by mail.

Holders of record may vote their shares electronically during the meeting via the Internet by visiting
www.virtualshareholdermeeting.com/QRI2022. To enter the annual meeting, holders will need the 16-digit control number
that is printed on their Notice or proxy card. We recommend logging in at least fifteen minutes before the meeting to ensure
that they are logged in when the meeting starts. Online check-in will start shortly before the meeting on June 14, 2022.

Instructions for voting prior to the annual meeting by using the Internet are printed on the Notice or the proxy voting
instructions attached to the proxy card. In order to vote prior to the annual meeting through the Internet, holders should have
their Notices or proxy cards available so they can input the required information from the Notice or proxy card, and log
onto the Internet website address shown on the Notice or proxy card. When holders log onto the Internet website address,
they will receive instructions on how to vote their shares. Unless subsequently revoked, shares of our common stock
represented by a proxy submitted as described herein and received at or before the annual meeting will be voted in
accordance with the instructions on the proxy.

YOUR VOTE IS IMPORTANT. It is recommended that you vote by proxy even if you plan to attend the annual meeting.
You may change your vote at the annual meeting.

If you submit a properly executed proxy without indicating any voting instructions as to a proposal enumerated in the
Notice of Annual Meeting of Stockholders, the shares represented by the proxy will be voted “FOR” the election of each
director nominee and “FOR” the auditors ratification proposal.

If you submit a proxy indicating that you abstain from voting as to a proposal, it will have no effect on the election of
directors proposal and will have the same effect as a vote “AGAINST” the auditors ratification proposal.

If you do not submit a proxy or you do not vote at the annual meeting, your shares will not be counted as present and
entitled to vote for purposes of determining a quorum, and your failure to vote will have no effect on determining whether
any of the proposals are approved (if a quorum is present).

VOTING PROCEDURES FOR SHARES HELD IN STREET NAME

GENERAL

If you hold your shares in the name of a broker, bank or other nominee, you should follow the instructions provided by
your broker, bank or other nominee when voting your shares or to grant or revoke a proxy. The rules and regulations of the
New York Stock Exchange and The Nasdaq Stock Market LLC (Nasdaq) prohibit brokers, banks and other nominees
from voting shares on behalf of their clients without specific instructions from their clients with respect to numerous matters,
including, in our case, the election of directors proposal. Accordingly, to ensure your shares held in street name are voted
on these matters, we encourage you to provide promptly specific voting instructions to your broker, bank or other nominee.

EFFECT OF BROKER NON-VOTES

Broker non-votes are counted as shares of our common stock present and entitled to vote for purposes of determining a
quorum but will have no effect on any of the proposals. You should follow the directions your broker, bank or other nominee
provides to you regarding how to vote your shares of common stock or how to change your vote or revoke your proxy.

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THE ANNUAL ME ET IN G

VOTING PROCEDURES FOR SHARES HELD IN THE LIBERTY MEDIA
401(K) SAVINGS PLAN

If you hold QRTEA shares through your account in the Liberty Media 401(k) Savings Plan, the trustee for such plan is
required to vote your shares as you specify. To allow sufficient time for the trustee to vote your shares, your voting instructions
must be received by 11:59 p.m., New York City time, on June 9, 2022. To vote such shares, please follow the instructions
provided by the trustee for such plan.

REVOKING A PROXY

If you submitted a proxy prior to the start of the annual meeting, you may change your vote by attending the annual
meeting online and voting via the Internet at the annual meeting or by delivering a signed proxy revocation or a new signed
proxy with a later date to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. Any signed proxy
revocation or later-dated proxy must be received before the start of the annual meeting. In addition, you may change your
vote through the Internet or by telephone (if you originally voted by the corresponding method) not later than 11:59 p.m.,
New York City time, on June 13, 2022 for shares held directly and 11:59 p.m., New York City time, on June 9, 2022 for shares
held in the Liberty Media 401(k) Savings Plan.

Your attendance at the annual meeting will not, by itself, revoke a prior vote or proxy from you.

If your shares are held in an account by a broker, bank or other nominee, you should contact your nominee to change your
vote or revoke your proxy.

SOLICITATION OF PROXIES

We are soliciting proxies by means of our proxy materials on behalf of our board of directors. In addition to this mailing,
our employees may solicit proxies personally or by telephone. We pay the cost of soliciting these proxies. We also reimburse
brokers and other nominees for their expenses in sending the Notice and, if requested, paper proxy materials to you and
getting your voting instructions.

If you have any further questions about voting or attending the annual meeting, please contact Qurate Retail Investor
Relations at (866) 876-0461 or Broadridge at (888) 789-8461 (outside the United States (626) 427-6421).

OTHER MATTERS TO BE VOTED ON AT THE ANNUAL MEETING

Our board of directors is not currently aware of any business to be acted on at the annual meeting other than that which
is described in the Notice of Annual Meeting of Stockholders and this proxy statement. If, however, other matters are
properly brought to a vote at the annual meeting, the persons designated as proxies will have discretion to vote or to act
on these matters according to their best judgment. In the event there is a proposal to adjourn or postpone the annual
meeting, the persons designated as proxies will have discretion to vote on that proposal.

STOCKHOLDER PROPOSALS

This proxy statement relates to our annual meeting of stockholders for the calendar year 2022 which will take place on
June 14, 2022. Based solely on the date of our 2022 annual meeting and the date of this proxy statement, (i) a stockholder
proposal must be submitted in writing to our Corporate Secretary and received at our executive offices at 12300 Liberty
Boulevard, Englewood, Colorado 80112, by the close of business on January 2, 2023 in order to be eligible for inclusion in
our proxy materials for the annual meeting of stockholders for the calendar year 2023 (the 2023 annual meeting), and
(ii) a stockholder proposal, or any nomination by stockholders of a person or persons for election to the board of directors,
must be received at our executive offices at the foregoing address not earlier than March 16, 2023 and not later than
April 17, 2023 to be considered for presentation at the 2023 annual meeting. We currently anticipate that the 2023 annual
meeting will be held during the second quarter of 2023. If the 2023 annual meeting takes place more than 30 days
before or 30 days after June 14, 2023 (the anniversary of the 2022 annual meeting), a stockholder proposal, or any

1 0 / 2022 PROXY STATEMENT

THE ANNUAL ME ET IN G

nomination by stockholders of a person or persons for election to the board of directors, will instead be required to be
received at our executive offices at the foregoing address not later than the close of business on the tenth day following
the first day on which notice of the date of the 2023 annual meeting is communicated to stockholders or public disclosure
of the date of the 2023 annual meeting is made, whichever occurs first, in order to be considered for presentation at the
2023 annual meeting. In addition, to comply with the universal proxy rules (once effective), stockholders who intend to solicit
proxies in support of director nominees other than Qurate Retail nominees must provide notice that sets forth the
information required by Rule 14a-19 under the Securities Exchange Act of 1934, as amended (the Exchange Act), no
later than April 17, 2023.

All stockholder proposals for inclusion in our proxy materials will be subject to the requirements of the proxy rules adopted
under the Exchange Act, our charter and bylaws and Delaware law.

ADDITIONAL INFORMATION

We file periodic reports, proxy materials and other information with the SEC. You may inspect such filings on the Internet
website maintained by the SEC at www.sec.gov. Additional information can also be found on our website at
www.qurateretail.com. (Information contained on any website referenced in this proxy statement is not incorporated by
reference in this proxy statement.) If you would like to receive a copy of our Annual Report on Form 10-K for the year
ended December 31, 2021 (the 2021 Form 10-K), which was filed on February 25, 2022 with the Securities and
Exchange Commission (SEC), or any of the exhibits listed therein, please call or submit a request in writing to
Investor Relations, Qurate Retail, Inc., 12300 Liberty Boulevard, Englewood, Colorado 80112, Tel. No. (866) 876-0461,
and we will provide you with the 2021 Form 10-K without charge, or any of the exhibits listed therein upon the
payment of a nominal fee (which fee will be limited to the expenses we incur in providing you with the requested
exhibits).

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PRO POSAL 1 – T H E E LE C T IO N OF DIRE C TOR S P ROP O SA L

Proposal 1 – The Election of Directors

Proposal

BOARD OF DIRECTORS OVERVIEW

We are asking our stockholders to elect John C. Malone, M. Ian
G. Gilchrist and Andrea L. Wong to continue serving as Class III
members of our board until the 2025 annual meeting of stockholders
or their earlier resignation or removal.

What am I being
asked to vote on
and how should I
vote?

Our board of directors currently consists of ten directors, divided among
three classes. Our Class III directors, whose term will expire at the 2022
annual meeting, are John C. Malone, M. Ian G. Gilchrist, Mark C. Vadon and
Andrea L. Wong. These directors, with the exception of Mr. Vadon, are
nominated for election to our board to continue serving as Class III directors,
and we have been informed that each of Messrs. Malone and Gilchrist and
Ms. Wong are willing to continue serving as a director of our company. Mr. Vadon has decided to retire from service on the
board of directors and will not be standing for re-election upon the expiration of his term at the annual meeting. At such
time, the size of the board of directors will be decreased to nine directors. The term of the Class III directors who are elected
at the annual meeting will expire at the annual meeting of our stockholders in the year 2025. Our Class I directors,
whose term will expire at the annual meeting of our stockholders in the year 2023, are Fiona P. Dias, Evan D. Malone and
Larry E. Romrell. Our Class II directors, whose term will expire at the annual meeting of our stockholders in the year
2024, are Richard N. Barton, David Rawlinson II and Gregory B. Maffei.

If any nominee should decline election or should become unable to serve as a director of our company for any reason
before election at the annual meeting, votes will be cast by the persons appointed as proxies for a substitute nominee, if
any, designated by the board of directors.

The following lists the three nominees for election as directors at the annual meeting and the six directors of our company
whose term of office will continue after the annual meeting, and includes as to each person how long such person has
been a director of our company, such person’s professional background, other public company directorships and other
factors considered in the determination that such person possesses the requisite qualifications and skills to serve as a
member of our board of directors. For additional information on our board’s evaluation of director candidates or incumbent
directors seeking re-election, see “Corporate Governance—Board Criteria and Director Candidates.” All positions
referenced in the biographical information below with our company include, where applicable, positions with our
predecessors. The number of shares of our capital stock beneficially owned by each director is set forth in this proxy
statement under the caption “Security Ownership of Certain Beneficial Owners and Management.”

The members of our nominating and corporate governance committee have determined that Messrs. Malone and Gilchrist
and Ms. Wong, who are nominated for election at the annual meeting, continue to be qualified to serve as directors of
our company and such nominations were approved by the entire board of directors.

VOTE AND RECOMMENDATION
A plurality of the combined voting power of the outstanding shares of our common stock present in person or represented
by proxy at the annual meeting and entitled to vote on the election of directors at the annual meeting, voting together as
a single class, is required to elect each of John C. Malone, M. Ian. G. Gilchrist and Andrea L. Wong as a Class III member
of our board of directors.

OUR BOARD RECOMMENDS A VOTE FOR EACH DIRECTOR NOMINEE

1 2 / 2022 PROXY STATEMENT

P ROP OSA L 1 – THE ELECTIO N OF DIRE CTOR S P ROP OS AL

OUR BOARD AT A GLANCE

Name and Principal Occupation

Committee Memberships

Director
Since

Executive Compensation

Nominating &
Corporate
Governance

Audit

Non-Liberty
Board Directorships(1)

Class III directors who will stand for election this year

JOHN C. MALONE

1994

M. IAN G. GILCHRIST

ANDREA L. WONG

2009

2010

Class I directors who will stand for election in 2023

FIONA P. DIAS

EVAN D. MALONE

LARRY E. ROMRELL

2017

2008

1999(2)

Class II directors who will stand for election in 2024

RICHARD N. BARTON

GREGORY B. MAFFEI
(BOARD CHAIRMAN)

DAVID RAWLINSON II

2016

2005

2022

Directors Not Standing for Re-Election

MARK C. VADON

2015

—

(1) Does not include service on special purpose acquisition companies that have not yet completed an initial business

combination or service on the board of directors of Liberty Media Corporation, Liberty Broadband Corporation, Liberty
TripAdvisor Holdings, Inc., Liberty Media Acquisition Corporation, Sirius XM Holdings Inc., Tripadvisor, Inc., Charter
Communications, Inc. or Live Nation Entertainment, Inc. See “Corporate Governance—Board Criteria and Director
Candidates—Outside Commitments.”

(2) Mr. Romrell briefly stepped down from the board of directors from September 2011 to December 2011. Please see

his biography below.

C = Chairperson

M = Member

= Independent

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PRO POSAL 1 – T H E E LE C T IO N OF DIRE C TOR S P ROP O SA L

INDEPENDENCE

60%

AGE

61 AVERAGE

40s

50s

60s

70s

80s

GENDER/DEMOGRAPHIC DIVERSITY

40%

DIRECTOR SKILLS AND EXPERIENCE

ENTERTAINMENT & MEDIA

MARKETING, RETAIL & DIGITAL
COMMERCE

OPERATIONS AND
MANAGEMENT

67%

78%

STRATEGIC OVERSIGHT

SUSTAINABILITY

RISK MANAGEMENT

100%

89%

ACCOUNTING & FINANCE

EXECUTIVE LEADERSHIP

PUBLIC BOARD EXPERIENCE

78%

89%

100%

1 4 / 2022 PROXY STATEMENT

P ROP OSA L 1 – THE ELECTIO N OF DIRE CTOR S P ROP OS AL

NOMINEES FOR ELECTION AS DIRECTORS

John C. Malone

Director Since: 1994
Age: 81
Committees: Executive

Mr. Malone, as President of TCI, co-founded our former parent company and is considered one of the preeminent figures in the
media and telecommunications industry. He is well known for his sophisticated problem solving and risk assessment skills.

Professional Background:

Public Company Directorships:

• Director of our company since its inception in 1994 and
Chairman of the Board from its inception in 1994 to
March 2018 and Chief Executive Officer from August 2005 to
February 2006

• Chairman of the Board of TCI from November 1996 to

March 1999 when it was acquired by AT&T Corp. (AT&T),
and Chief Executive Officer of TCI from January 1994 to
March 1997

• Liberty Media (December 2010 – present, Chairman of the

Board, August 2011 – present)

• Liberty Broadband (Chairman of the Board,

November 2014 – present)

Non-Liberty Public Company Directorships:
• Warner Bros. Discovery, Inc. (Warner Bros. Discovery)

(April 2022 – present)

• Liberty Global plc (LGP) (Chairman of the Board,

June 2013 – present)

Former Public Company Directorships:

• GCI Liberty, Inc. (GCI Liberty) (Chairman of the Board,

March 2018 – December 2020)

• Liberty Expedia Holdings, Inc. (Chairman of the Board,

November 2016 – July 2019)

• Liberty Latin America Ltd.

(December 2017 – December 2019)

• Discovery, Inc. (Discovery) (formerly Discovery

Communications, Inc. (Discovery Communications))
(Warner Bros. Discovery’s predecessor)
(September 2008 – April 2022)

• Discovery Holding Company (DHC) (predecessor of

Discovery Communications)
(March 2005 – September 2008; Chairman of the Board,
May 2005 – September 2008)

• Liberty Global, Inc. (LGI) (LGP’s predecessor) (Chairman of

the Board, June 2005 – June 2013)

• Liberty Media International, Inc. (LMI) (LGI’s predecessor)

(March 2004 – June 2005)

• UnitedGlobalCom, Inc. (January 2022 – June 2005)
• Lions Gate Entertainment Corp.
(March 2015 – September 2018)

• Charter Communications, Inc. (Charter)

(May 2013 – July 2018)

• Expedia, Inc. (December 2012 – December 2017;

August 2005 – November 2012)

• Liberty TripAdvisor (August 2014 – June 2015)
• Sirius XM Holdings Inc. (Sirius XM) (April 2009 – May 2013)
• Ascent Capital Group, Inc.

(January 2010 – September 2012)

• Live Nation Entertainment, Inc. (Live Nation)

(January 2010 – February 2011)

• DIRECTV (including predecessors) (Chairman of the Board,

February 2008 – June 2010)

• IAC/InterActiveCorp (May 2006 – June 2010)

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PRO POSAL 1 – T H E E LE C T IO N OF DIRE C TOR S P ROP O SA L

M. Ian G. Gilchrist

Director Since: July 2009
Age: 72
Committees: Audit (Chair)
Independent Director

Mr. Gilchrist’s field of expertise is in the media and telecommunications sector, having been involved with companies in this
industry during much of his 32 years as an investment banker. Mr. Gilchrist brings to our board significant financial expertise and
a unique perspective on the company and the media and telecommunications sector. He is also an important resource with
respect to the financial services firms that our company engages from time to time.

Professional Background:

Public Company Directorships:

• Director and President of Trine Acquisition Corp. from

March 2019 to December 2020

• Various officer positions including Managing Director at
Citigroup/Salomon Brothers from 1995 to 2008, CS First
Boston Corporation from 1988 to 1995, and Blyth Eastman
Paine Webber from 1982 to 1988 and served as a Vice
President of Warburg Paribas Becker Incorporated from
1976 to 1982

• Previously worked in the venture capital field and as an

investment analyst

• Liberty Media (including predecessors)

(September 2011 – present)

Non-Liberty Public Company Directorships:
• None

Former Public Company Directorships:

• Trine Acquisition Corp. (March 2019 – December 2020)

Andrea L. Wong

Director Since: April 2010
Age: 55
Committees: Compensation; Nominating & Corporate
Governance (Chair)
Independent Director

Ms. Wong brings to our board significant experience in the media and entertainment industry, having an extensive background in
media programming across a variety of platforms, as well as executive leadership experience with the management and
operation of companies in the entertainment sector. Her experience with programming development and production, brand
enhancement and marketing brings a pragmatic and unique perspective to our board. Her professional expertise, combined with
her continued involvement in the media and entertainment industry, makes her a valuable member of our board.

Professional Background:

Public Company Directorships:

• President, International Production for Sony Pictures

• Liberty Media (September 2011 – present)

Television and President, International for Sony Pictures
Entertainment from September 2011 to March 2017

• President and Chief Executive Officer of Lifetime
Entertainment Services from 2007 to April 2010

• Served as an Executive Vice President with ABC, Inc., a
subsidiary of The Walt Disney Company, from 2003 to
2007

Non-Liberty Public Company Directorships:
• Hudson Pacific Properties, Inc. (August 2017 – present)
• Roblox Corporation (August 2020 – present)
• Oaktree Acquisition Corp. II (September 2020 – present)

Former Public Company Directorships:

• Oaktree Acquisition Corp. (July 2019 – January 2021)
• Social Capital Hedosophia Holdings Corp.

(September 2017 – October 2019)

• Hudson’s Bay Company (September 2014 – March 2020)

1 6 / 2022 PROXY STATEMENT

P ROP OSA L 1 – THE ELECTIO N OF DIRE CTOR S P ROP OS AL

DIRECTORS WHOSE TERM EXPIRES IN 2023

Fiona P. Dias

Director Since:
December 2017
Age: 56
Committees: Audit
Independent Director

Ms. Dias was appointed to our
board in connection with the
closing of the HSN, Inc. acquisition
and pursuant to the terms of the
merger agreement for the
transaction.

Ms. Dias brings to our board significant experience in senior policy-making roles both as a member of other public company
boards and as a senior marketing executive. She also brings extensive experience in digital commerce, marketing and managing
consumer and retail brands.

Professional Background:

Public Company Directorships:

• Principal Digital Partner at Ryan Retail Consulting, LLC, a

global consulting firm, since January 2015

• Chief Strategy Officer of ShopRunner, an online shopping

service, from August 2011 to October 2014

• Executive Vice President, Strategy & Marketing, of GSI

Commerce, Inc., a provider of digital commerce solutions,
from February 2007 to June 2011

• Previously Executive Vice President and Chief Marketing
Officer of Circuit City Stores, Inc., a specialty retailer of
consumer electronics, and also held senior marketing
positions with PepsiCo, Pennzoil-Quaker State Company
and The Procter & Gamble Company

Non-Liberty Public Company Directorships:
• Berkshire Grey Inc. (July 2021 – present)
• Realogy Holdings Corp., a real estate brokerage company

(June 2013 – present)

Former Public Company Directorships:

• Advance Auto Parts, Inc. (September 2009 – May 2019)
• HSN, Inc. (July 2016 – December 2017)
• Choice Hotels International, Inc.
(November 2004 – April 2012)

Evan D. Malone

Director Since: August 2008
Age: 51

Dr. Malone brings an applied science and engineering perspective to the board. Dr. Malone’s perspectives assist the board in
developing business strategies and adapting to technological changes facing the industries in which our company competes. In
addition, his entrepreneurial experience assists the board in evaluating strategic opportunities.

Professional Background:

Public Company Directorships:

• Liberty Media (September 2011 – present)
• Sirius XM (May 2013 – present)

Non-Liberty Public Company Directorships:
• None

Former Public Company Directorships:

• None

• President of NextFab Studio, LLC (provides manufacturing-

related technical training, product development, and
business acceleration services) since June 2009

• Owner and manager of 1525 South Street LLC (real estate
property and management company) since January 2008
• Co-owner and director of Drive Passion PC Services, CC

(Internet café, telecommunications and document services
company) in South Africa since 2007

• Applied physics technician for Fermi National Accelerator
Laboratory, part of the national laboratory system of the
Office of Science, U.S. Department of Energy, from 1999
until 2001

• Founding member of Jet Wine Bar (wine bar) and Rex

1516 (restaurant) both in Philadelphia

• Director and president of the NextFab Foundation (IRS
501(c)(3) private operating foundation, which provides
manufacturing-related technology and education to
communities affected by economic or humanitarian
distress) since November 2016

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PRO POSAL 1 – T H E E LE C T IO N OF DIRE C TOR S P ROP O SA L

Larry E. Romrell

Director Since: December 2011, previously served
March 1999 – September 2011
Age: 82
Committees: Audit; Compensation (Chair)
Independent Director

Mr. Romrell brings extensive experience, including venture capital experience, in the telecommunications industry to our board
and is an important resource with respect to the management and operations of companies in the media and telecommunications
sector.

Professional Background:

Public Company Directorships:

• Held numerous executive positions with TCI from 1991 to

1999

• Previously held various executive positions with Westmarc

Communications, Inc.

• Liberty Media (September 2011 – present)
• Liberty TripAdvisor (August 2014 – present)

Non-Liberty Public Company Directorships:
• LGP (July 2013 – present)

Former Public Company Directorships:
• LGI (June 2005 to June 2013)
• LMI (May 2004 – June 2005)

DIRECTORS WHOSE TERM EXPIRES IN 2024

Richard N. Barton

Director Since: December 2016
Age: 54
Committees: Nominating and Corporate Governance
Independent Director

Mr. Barton brings to our board a broad range of relevant leadership and technical skills resulting from his roles as a founder and
former chief executive officer of companies in the mobile and Internet industries. Mr. Barton also provides experience in
launching and promoting new technologies and marketing internet-based products to consumers.

Professional Background:

Public Company Directorships:

• Co-founder and Chief Executive Officer of Zillow Group,
Inc. (Zillow) since February 2019, and Chief Executive
Officer December 2004 – September 2010

• Co-founder of Glassdoor, Inc. (Glassdoor) and served as
its Non-Executive Chairman from June 2007 to June 2018

• Venture partner at Benchmark Capital, a venture capital

firm, from 2005 to 2018

• Founded Expedia as a group within Microsoft Corporation
(Microsoft) in 1994, which was spun out as Expedia, Inc.
in 1999; served as its Chief Executive Officer and
President from 1999 to 2003

Non-Liberty Public Company Directorships:
• Zillow Group (December 2004 – present, Executive

Chairman, September 2010 – February 2019)

• Netflix, Inc. (2002 – present)

Former Public Company Directorships:

• Altimeter Growth Corp. 2 (January 2021 – March 2022)
• Altimeter Growth Corp.

(September 2020 – December 2021)
• Glassdoor (Non-Executive Chairman,

June 2007 – June 2018)
• Expedia, Inc. (1999 – 2003)
• Ticketmaster Entertainment, Inc.
(December 2001 – August 2002)

1 8 / 2022 PROXY STATEMENT

P ROP OSA L 1 – THE ELECTIO N OF DIRE CTOR S P ROP OS AL

Gregory B. Maffei

Chairman of the Board
Director Since: November 2005, Chairman since March 2018
Age: 61
Committees: Executive

Mr. Maffei brings to our board significant financial and operational experience based on his current senior policy making positions
at our company, Liberty Media Acquisition Corporation (LMAC), Liberty Media, Liberty TripAdvisor and Liberty Broadband, and
his previous executive positions at GCI Liberty, Oracle Corporation (Oracle), 360networks Corporation (360networks) and
Microsoft, as well as his public company board experience. He provides our board with an executive leadership perspective on
the strategic planning for, and operations and management of, large public companies and risk management principles.

Professional Background:

Public Company Directorships:

• President and Chief Executive Officer of our company from

February 2006 to March 2018, having served as its
CEO-Elect from November 2005 through February 2006;
Chairman of the Board since March 2018

• President and Chief Executive Officer of Liberty Media

since May 2007

• President and Chief Executive Officer of Liberty

Broadband since June 2014

• President and Chief Executive Officer of LMAC since

November 2020

• President and Chief Executive Officer of Liberty

TripAdvisor since July 2013

• President and Chief Executive Officer of GCI Liberty from
March 2018 until its combination with Liberty Broadband in
December 2020

• Previously President and Chief Financial Officer of Oracle,

Chairman, President and Chief Executive Officer of
360networks, and Chief Financial Officer of Microsoft

• Liberty Media (May 2007 – present)
• Sirius XM (March 2009 – present, Chairman of the Board,

April 2013 – present)

• Live Nation (February 2011 – present, Chairman of the

Board, March 2013 – present)

• Liberty TripAdvisor (July 2013 – present, Chairman of the

Board, June 2015 – present)

• Tripadvisor, Inc. (Tripadvisor) (Chairman of the Board,

February 2013 – present)

• Liberty Broadband (June 2014 – present)
• Charter (May 2013 – present)
• LMAC (November 2020 – present, Chairman of the Board,

April 2021 – present)

Non-Liberty Public Company Directorships:
• Zillow (February 2015 – present)
Former Public Company Directorships:

• GCI Liberty (March 2018 – December 2020)
• Zillow, Inc. (Zillow’s predecessor)
(May 2005 – February 2015)

• DIRECTV and predecessors (February 2008 – June 2010)
• Electronic Arts, Inc. (June 2003 – July 2013)
• Barnes & Noble, Inc. (September 2011 – April 2014)
• STARZ (Chairman of the Board,
January 2013 – December 2016)

• Pandora Media, Inc. (September 2017 – February 2019)

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PRO POSAL 1 – T H E E LE C T IO N OF DIRE C TOR S P ROP O SA L

David Rawlinson II
President and Chief Executive Officer

Director Since: January 2022
Age: 46
Committees: Executive

Mr. Rawlinson brings to our company and our board significant experience in global e-commerce, consumer trends, customer
data and digital business-to-business operations. In addition to his background in information solutions, Mr. Rawlinson brings deep
leadership experience on a global scale and adds another expert perspective to our board with his track record of success in
digital commerce.

Professional Background:

Public Company Directorships:

Non-Liberty Public Company Directorships:
• Discover Financial Services (February 2021 – present)

Former Public Company Directorships:

• Nielsen Holdings plc (February 2017 – March 2021)
• MonotaRO Co., Ltd. (2014 – 2019)

• Chief Executive Officer and President of our company and
QVC, Inc. since October 2021, previously President and
CEO-Elect from August 2021 – September 2021

• Chief Executive Officer of NielsenIQ (formerly Nielsen
Global Connect) from February 2020 to March 2021

• President of Global Online Business at W. W. Grainger, Inc.
(Grainger) from November 2015 to February 2020, joined
Grainger in July 2012 and previously held other executive
roles with Grainger

• Previously held executive roles at ITT Exelis (formerly ITT

Corp.) from 2009 to 2012

• Previously served as a White House Fellow and held
appointed positions in both the Bush and Obama
administrations; in the Obama Administration served as a
senior advisor for economic policy with the White House
National Economic Council.

2 0 / 2022 PROXY STATEMENT

CO RPO RATE GOV E RNAN CE

Corporate Governance

DIRECTOR INDEPENDENCE

It is our policy that a majority of the members of our board of directors be independent of our management. For a director
to be deemed independent, our board of directors must affirmatively determine that the director has no direct or indirect
material relationship with us. To assist our board of directors in determining which of our directors qualify as independent
for purposes of Nasdaq rules as well as applicable rules and regulations adopted by the SEC, the nominating and corporate
governance committee of our board of directors follows Nasdaq’s corporate governance rules on the criteria for director
independence.

Our board of directors has determined that each of Richard N. Barton, Fiona P. Dias, M. Ian G. Gilchrist, Larry E. Romrell,
Mark C. Vadon and Andrea L. Wong qualifies as an independent director of our company. Our board of directors also
determined that David E. Rapley, who resigned from our board of directors effective August 18, 2021, also qualified as an
independent director of our company during his service on our board.

BOARD COMPOSITION

As described above under “Proposal 1—The Election of Directors Proposal,” our board is comprised of directors with a
broad range of backgrounds and skill sets, including in media and telecommunications, science and technology, venture
capital, investment banking, auditing and financial engineering. Our board is also chronologically diverse with our members’
ages spanning five decades. For more information on our policies with respect to board candidates, see “—Board Criteria
and Director Candidates” below.

BOARD CLASSIFICATION

As described above under “Proposal 1—The Election of Directors Proposal,” our board of directors currently consists of
ten directors, divided among three classes. Our board believes that its current classified structure, with directors serving for
three-year terms, is the appropriate board structure for our company at this time and is in the best interests of our
stockholders for the following reasons.

LONG-TERM FOCUS & ACCOUNTABILITY

Our board believes that a classified board encourages our directors to look to the long-term best interest of our company
and our stockholders, rather than being unduly influenced by the short-term focus of certain investors and special interests.
In addition, our board believes that three-year terms focus director accountability on the board’s long-term strategic
vision and performance, rather than short-term pressures and circumstances.

CONTINUITY OF BOARD LEADERSHIP

A classified board allows for a greater amount of stability and continuity providing institutional perspective and knowledge
to both management and less-tenured directors. By its very nature, a classified board ensures that at any given time
there will be experienced directors serving on our board who are fully immersed in and knowledgeable about our businesses,
including our relationships with current and potential strategic partners, as well as the competition, opportunities, risks
and challenges that exist in the industries in which our businesses operate. We also believe the benefit of a classified board
to our company and our stockholders comes not from continuity alone but rather from the continuity of highly qualified,
engaged and knowledgeable directors focused on long-term stockholder interests. Each year, our nominating and corporate
governance committee works actively to ensure our board continues to be comprised of such individuals.

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CO R PORATE GOV E RNAN CE

BOARD DIVERSITY

Our board understands and appreciates the value and enrichment provided by a diverse board. As such, we actively seek
diverse director candidates (see “— Board Criteria and Director Candidates”).

Total Number of Directors

Board Diversity Matrix (as of April 26, 2022)

Female Male

Non-Binary

Did Not
Disclose Gender

Part I: Gender Identity

Directors

Part II: Demographic Background

African American or Black

Alaskan Native or American Indian

Asian

Hispanic or Latinx

Native Hawaiian or Pacific Islander

White

Two or More Races or Ethnicities

LGBTQ+

Did Not Disclose Demographic Background

BOARD LEADERSHIP STRUCTURE

—

Our board has separated the positions of Chairman of the Board and Chief Executive Officer (principal executive officer).
Gregory B. Maffei holds the position of Chairman of the Board, leads our board and board meetings and provides
strategic guidance to our Chief Executive Officer. David Rawlinson II, our President, holds the position of Chief Executive
Officer, leads our management team and is responsible for driving the performance of our company. We believe this division
of responsibility effectively assists our board in fulfilling its duties.

BOARD ROLE IN RISK OVERSIGHT

The board as a whole has responsibility for risk oversight, with reviews of certain areas being conducted by the relevant
board committees. Our audit committee oversees management of financial risks and risks relating to potential conflicts of
interest. Our compensation committee oversees the management of risks relating to our compensation arrangements with
senior officers. Our nominating and corporate governance committee oversees the nomination of individuals with the
judgment, skills, integrity, and independence necessary to oversee the key risks associated with our company, as well as
risks inherent in our corporate structure. These committees then provide reports periodically to the full board. In addition, the
oversight and review of other strategic risks are conducted directly by the full board.

The oversight responsibility of the board and its committees is enabled by management reporting processes that are
designed to provide visibility to the board about the identification, assessment, and management of critical risks. These
areas of focus include strategic, operational, financial and reporting, succession and compensation, legal and compliance,
cybersecurity and other risks, including those related to material environmental and social matters such as climate
change, human capital management, diversity, equity and inclusion, and community relations (together with governance
concerns, ESG). Our management reporting processes include regular reports from our Chairman of the Board and Chief
Executive Officer, which are prepared with input from our senior management team, and also include input from our
Internal Audit group and our Chief Portfolio Officer, who manages our company’s ESG efforts and remains in regular
contact with senior ESG leaders across our portfolio of companies who provide feedback and disclosure on material issues.
Our company also receives the benefit of Liberty Media’s Corporate Responsibility Committee, which has cross-
functional representation across all reaches of Liberty Media’s leadership, as well as Qurate Retail Group’s Corporate

2 2 / 2022 PROXY STATEMENT

CO RPO RATE GOV E RNAN CE

Responsibility Executive Steering Committee, which aims to effectively integrate corporate responsibility strategies into
Qurate Retail Group’s major business functions and operations to accomplish business objectives. With our board’s oversight,
we seek to collaborate across our portfolio of companies to drive best practices through regular ESG-focused internal
meetings and discussions, including on topics such as ESG disclosure, diversity and inclusion, cybersecurity, and
sustainability.

CODE OF ETHICS

We have adopted a code of business conduct and ethics that applies to all of our employees, directors and officers, which
constitutes our “code of ethics” within the meaning of Section 406 of the Sarbanes-Oxley Act. Our code of business
conduct and ethics is available on our website at www.qurateretail.com.

FAMILY RELATIONSHIPS; LEGAL PROCEEDINGS

There is no family relationship between any of our executive officers or directors, by blood, marriage or adoption, other
than Evan D. Malone, who is the son of John C. Malone.

During the past ten years, none of our directors and executive officers has had any involvement in such legal proceedings
as would be material to an evaluation of his or her ability or integrity.

COMMITTEES OF THE BOARD OF DIRECTORS

The board of directors has four standing committees: audit, compensation, executive and nominating and corporate
governance. The key responsibilities and focus areas of each committee, as well as their current members and information
on number of meetings during 2021 are set forth below. The written charters for the audit, compensation and nominating
and corporate governance committees as adopted by each such committee, as well as our corporate governance guidelines
(which were developed by the nominating and corporate governance committee), can be found on our website at
www.qurateretail.com.

Our board of directors, by resolution, may from time to time establish other committees of our board of directors, consisting
of one or more of our directors. Any committee so established will have the powers delegated to it by resolution of our
board of directors, subject to applicable law.

The board of directors has determined that all of the members of each of the audit, compensation and nominating and
corporate governance committees are independent. See “—Director Independence.”

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CO R PORATE GOV E RNAN CE

AUDIT COMMITTEE OVERVIEW

6 meetings in 2021

Chair
M. Ian G. Gilchrist*

Other Members
Fiona P. Dias
Larry Romrell

Former Members
David E. Rapley (prior
to August 2021)

*Our board of directors has
determined that Mr. Gilchrist
is an “audit committee
financial expert” under
applicable SEC rules and
regulations

Audit Committee Report,
page 36

The audit committee reviews and monitors the corporate financial reporting and the
internal and external audits of our company. The committee’s functions include,
among other things:

• Appointing or replacing our independent auditors;

• Reviewing and approving in advance the scope and the fees of our annual
audit and reviewing the results of our audits with our independent auditors;

• Reviewing and approving in advance the scope and the fees of non-audit

services of our independent auditors;

• Reviewing compliance with and the adequacy of our existing major accounting

and financial reporting policies;

• Reviewing our management’s procedures and policies relating to the adequacy
of our internal accounting controls and compliance with applicable laws relating
to accounting practices;

• Confirming compliance with applicable SEC and stock exchange rules; and

• Preparing a report for our annual proxy statement.

EXECUTIVE COMMITTEE OVERVIEW

Our executive committee may exercise all the powers and authority of our board of
directors in the management of our business and affairs (except as specifically
prohibited by the General Corporation Law of the State of Delaware). This includes
the power and authority to authorize the issuance of shares of our capital stock.

1 meeting in 2021

Members
John C. Malone
Gregory B. Maffei
David Rawlinson II

Former Members:
Michael A. George (prior to
January 2022)

2 4 / 2022 PROXY STATEMENT

CO RPO RATE GOV E RNAN CE

COMPENSATION COMMITTEE OVERVIEW

7 meetings in 2021

Key Responsibilities:

Chair
Larry E. Romrell

Other Members
Mark C. Vadon
Andrea L. Wong

Compensation Committee
Report, page 53

• Review and approve corporate goals and objectives relevant to the

compensation of our Chairman of the Board, Chief Executive Officer and our
other executive officers;

• Review and approve the compensation of our Chief Executive Officer, Chief

Legal Officer, Chief Administrative Officer, Chief Portfolio Officer, Chief
Accounting Officer, Principal Financial Officer and Chief Corporate
Development Officer;

• Oversee the compensation of the chief executive officers of our non-public

operating subsidiaries.

For a description of our processes and policies for consideration and determination
of executive compensation, including the role of our Chairman of the Board and
outside consultants in determining or recommending amounts and/or forms of
compensation, see “Executive Compensation—Compensation Discussion and
Analysis.” A subcommittee, whose members are Larry E. Romrell and Andrea L.
Wong, was formed in 2017 to review compensation matters for purposes of
Section 16 of the Exchange Act and Section 162(m) of the Internal Revenue Code
of 1986, as amended (the Code).

NOMINATING AND CORPORATE GOVERNANCE COMMITTEE OVERVIEW

2 meetings in 2021

Key Responsibilities:

Chair
Andrea L. Wong

Other Members
Richard N. Barton
Mark C. Vadon

Former Members
David E. Rapley (prior to
August 2021)

• Identify individuals qualified to become board members consistent with criteria

established or approved by our board of directors from time to time;

• Identify director nominees for upcoming annual meetings;

• Develop corporate governance guidelines applicable to our company; and

• Oversee the evaluation of our board and management.

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CO R PORATE GOV E RNAN CE

BOARD CRITERIA AND DIRECTOR CANDIDATES

BOARD CRITERIA. The nominating and corporate governance committee believes that nominees for director should
possess the highest personal and professional ethics, integrity, values and judgment and should be committed to the
long-term interests of our stockholders. To be nominated to serve as a director, a nominee need not meet any specific
minimum criteria. As described in our corporate governance guidelines, director candidates are identified and nominated
based on broad criteria, with the objective of identifying and retaining directors that can effectively develop the company’s
strategy and oversee management’s execution of that strategy. In the director candidate identification and nomination
process, our board seeks a breadth of experience from a variety of industries and from professional disciplines, along with
a diversity of gender, ethnicity, age and other characteristics. When evaluating a potential director nominee, including one
recommended by a stockholder, the nominating and corporate governance committee will take into account a number of
factors, including, but not limited to, the following:

• independence from management;

• his or her unique background, including education, professional experience, relevant skill sets and diversity of

gender, ethnicity, age and other characteristics;

• judgment, skill, integrity and reputation;

• existing commitments to other businesses as a director, executive or owner;

• personal conflicts of interest, if any; and

• the size and composition of the existing board of directors, including whether the potential director nominee would
positively impact the composition of the board by bringing a new perspective or viewpoint to the board of directors.

The nominating and corporate governance committee does not assign specific weights to particular criteria and no particular
criterion is necessarily applicable to all prospective nominees.

OUTSIDE COMMITMENTS. In recent years, some investors and proxy advisors have instituted “bright-line” proxy voting
policies on the number of outside public company boards that a director may serve on. Our board of directors recognizes
investors’ concerns that highly sought-after directors could lack the time and attention to adequately perform their duties and
responsibilities, and considers each director’s performance and commitment to ensure their continued effectiveness as a
director. Given our company’s ownership interests in other public companies, our company and our board values the positions
our directors and members of management hold on the boards of these entities, as they provide our company with
unique insight and input into those businesses and their operations. The nominating and corporate governance committee
also recognizes and values the benefits derived by our directors from their service on other public company boards, as
such service provides our directors with diverse perspectives, in-depth industry knowledge and cross-industry insights, all
of which enhance the knowledge base and skill set of our board as a whole.

Our board also recognizes the uniqueness of the relationships among Liberty Media, Qurate Retail, Liberty Broadband
and Liberty TripAdvisor, including the collaborative approach to addressing ESG, as well as with the portfolio of assets within
each of these public companies. To the extent our directors serve on more than one of the boards of these companies,
we believe that such service is an important aspect of our directors’ (including Messrs. Malone and Maffei) service, as it
capitalizes on various synergies between and among these boards. For this reason, we believe that a better presentation of
these directors’ outside commitments is to consider the number of their “non-Liberty” public company board directorships
(see “Proposal 1—The Election of Directors Proposal—Our Board at a Glance”). Based on this perspective, we have
considered the facts-and-circumstances of the roles of our directors with our company, including the following
considerations:

• from a historical perspective, the significant time and resources each of these directors has regularly dedicated to

our company;

• the nature of their board commitments relating to their respective roles with these companies;

• the synergies between their respective service on these other boards and ours;

• their respective service on “non-Liberty” public company board directorships; and

• the respective directors’ personal skills, expertise and qualifications (including the broad industry knowledge of

each such director).

2 6 / 2022 PROXY STATEMENT

CO RPO RATE GOV E RNAN CE

We believe that the outside service of our directors does not conflict with, and instead enhances, their respective roles
and responsibilities at our company.

DIRECTOR CANDIDATE IDENTIFICATION PROCESS. The nominating and corporate governance committee will
consider candidates for director recommended by any stockholder provided that such recommendations are properly
submitted. Eligible stockholders wishing to recommend a candidate for nomination as a director should send the
recommendation in writing to the Corporate Secretary, Qurate Retail, Inc., 12300 Liberty Boulevard, Englewood,
Colorado 80112. Stockholder recommendations must be made in accordance with our bylaws, as discussed under “The
Annual Meeting—Stockholder Proposals” above, and contain the following information:

• the name and address of the proposing stockholder and the beneficial owner, if any, on whose behalf the nomination
is being made, and documentation indicating the number of shares of our common stock owned beneficially and
of record by such person and the holder or holders of record of those shares, together with a statement that the
proposing stockholder is recommending a candidate for nomination as a director;

• the candidate’s name, age, business and residence addresses, principal occupation or employment, business

experience, educational background and any other information relevant in light of the factors considered by the
nominating and corporate governance committee in making a determination of a candidate’s qualifications, as
described below;

• a statement detailing any relationship, arrangement or understanding between the proposing stockholder and/or

beneficial owner(s), if different, and any other person(s) (including their names) under which the proposing stockholder
is making the nomination and any affiliates or associates (as defined in Rule 12b-2 of the Exchange Act) of such
proposing stockholder(s) or beneficial owner (each a Proposing Person);

• a statement detailing any relationship, arrangement or understanding that might affect the independence of the

candidate as a member of our board of directors;

• any other information that would be required under SEC rules in a proxy statement soliciting proxies for the election

of such candidate as a director;

• a representation as to whether the Proposing Person intends (or is part of a group that intends) to deliver any proxy

materials or otherwise solicit proxies in support of the director nominee;

• a representation by each Proposing Person who is a holder of record of our common stock as to whether the

notice is being given on behalf of the holder of record and/or one or more beneficial owners, the number of shares
held by any beneficial owner along with evidence of such beneficial ownership and that such holder of record is
entitled to vote at the annual stockholders meeting and intends to appear in person or by proxy at the annual
stockholders meeting at which the person named in such notice is to stand for election;

• a written consent of the candidate to be named in the proxy statement and to serve as a director, if nominated and

elected;

• a representation as to whether the Proposing Person has received any financial assistance, funding or other

consideration from any other person regarding the nomination (a Stockholder Associated Person) (including the
details of such assistance, funding or consideration); and

• a representation as to whether and the extent to which any hedging, derivative or other transaction has been

entered into with respect to our company within the last six months by, or is in effect with respect to, the Proposing
Person, any person to be nominated by the proposing stockholder or any Stockholder Associated Person, the effect
or intent of which transaction is to mitigate loss to or manage risk or benefit of share price changes for, or increase
or decrease the voting power of, the Proposing Person, its nominee, or any such Stockholder Associated Person.

In connection with its evaluation, the nominating and corporate governance committee may request additional information
from the proposing stockholder and the candidate. The nominating and corporate governance committee has sole
discretion to decide which individuals to recommend for nomination as directors.

When seeking candidates for director, the nominating and corporate governance committee may solicit suggestions from
incumbent directors, management, stockholders and others. After conducting an initial evaluation of a prospective nominee,
the nominating and corporate governance committee will interview that candidate if it believes the candidate might be
suitable to be a director. The nominating and corporate governance committee may also ask the candidate to meet with

QU RATE R ETA IL , INC.

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CO R PORATE GOV E RNAN CE

management. If the nominating and corporate governance committee believes a candidate would be a valuable addition
to our board of directors, it may recommend to the full board that candidate’s nomination and election.

Prior to nominating an incumbent director for re-election at an annual meeting of stockholders, the nominating and
corporate governance committee will consider the director’s past attendance at, and participation in, meetings of the
board of directors and its committees and the director’s formal and informal contributions to the various activities conducted
by the board and the board committees of which such individual is a member. In addition, the nominating and corporate
governance committee will consider any outside directorships held by such individual. See “Proposal 1—The Election of
Directors Proposal—Outside Commitments” above.

BOARD MEETINGS

During 2021, there were 6 meetings of our full board of directors.

DIRECTOR ATTENDANCE AT ANNUAL MEETINGS

Our board of directors encourages all members of the board to attend each annual meeting of our stockholders. Nine of
our eleven directors then-serving attended our 2021 annual meeting of stockholders.

STOCKHOLDER COMMUNICATION WITH DIRECTORS

Our stockholders may send communications to our board of directors or to individual directors by mail addressed to the
Board of Directors or to an individual director c/o Qurate Retail, Inc., 12300 Liberty Boulevard, Englewood, Colorado 80112.
All such communications from stockholders will be forwarded to our directors on a timely basis. Stockholders are also
encouraged to send communications to Qurate Retail Investor Relations, which conducts robust stockholder engagement
efforts for our company and provides our board with insight on stockholder concerns.

EXECUTIVE SESSIONS

In 2021, the independent directors of our company, then serving, met at three executive sessions without management
participation.

Any interested party who has a concern regarding any matter that it wishes to have addressed by our independent
directors, as a group, at an upcoming executive session may send its concern in writing addressed to Independent Directors
of Qurate Retail, Inc., c/o Qurate Retail, Inc., 12300 Liberty Boulevard, Englewood, Colorado 80112. The current
independent directors of our company are Richard N. Barton, Fiona P. Dias, M. Ian G. Gilchrist, Larry E. Romrell, Mark C.
Vadon and Andrea L. Wong.

2 8 / 2022 PROXY STATEMENT

DIR ECTO R CO M PE NS ATI ON

Director Compensation

NONEMPLOYEE DIRECTORS

DIRECTOR FEES

Each of our directors who is not an employee of our company is paid an annual fee for 2022 of $237,000 (which, in 2021,
was $232,000) (which we refer to as the director fee), of which, for service on our board in 2022, each director received
$124,000 of his or her director fee in QRTEA restricted stock units (RSUs) that will vest one year from the grant date with the
remaining $113,000 of the director fee payable in cash. For service on our board in 2021, each director was permitted to
elect to receive $121,500 of his or her director fee in QRTEA RSUs, options to purchase QRTEA shares or a combination
that vested one year from the grant date with the remaining $110,500 of the director fee payable in cash. The awards
issued to our directors with respect to their service on our board in 2022 were issued in December 2021. See “—Director
RSU Grants” below for information on the incentive awards granted in 2021 to the nonemployee directors with respect to
service on our board in 2022.

Fees for service on our audit committee, compensation committee and nominating and corporate governance committee
are the same for 2022 and 2021, with each member thereof receiving an additional annual fee of $30,000, $10,000 and
$10,000, respectively, for his or her participation on each such committee, except that the chairperson of each such
committee instead receives an additional annual fee of $40,000, $20,000 and $20,000, respectively, for his or her
participation on that committee. The cash portion of the director fees and the fees for participation on committees are
payable quarterly in arrears.

CHARITABLE CONTRIBUTIONS

If a director makes a donation to our political action committee, we will make a matching donation to a charity of his or her
choice in an amount not to exceed $10,000.

EQUITY INCENTIVE PLAN

Awards granted to our nonemployee directors under the Qurate Retail, Inc. 2020 Omnibus Incentive Plan (the 2020
incentive plan) are administered by our board of directors or our compensation committee. Our board of directors has full
power and authority to grant nonemployee directors the awards described below and to determine the terms and conditions
under which any awards are made. The 2020 incentive plan is designed to provide our nonemployee directors with additional
remuneration for services rendered, to encourage their investment in our common stock and to aid in attracting persons
of exceptional ability to become nonemployee directors of our company. Our board of directors may grant non-qualified
stock options, stock appreciation rights (SARs), restricted shares, restricted stock units and cash awards or any combination
of the foregoing under the 2020 incentive plan.

The maximum number of shares of our common stock with respect to which awards may be issued under the 2020
incentive plan is 42,153,763, subject to anti-dilution and other adjustment provisions. Under the 2020 incentive plan, no
nonemployee director may be granted during any calendar year awards having a value determined on the date of grant in
excess of $1 million. Shares of our common stock issuable pursuant to awards made under the 2020 incentive plan are
made available from either authorized but unissued shares or shares that have been issued but reacquired by our company.

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DI RECTOR COM PENS AT IO N

DIRECTOR RSU GRANTS

Pursuant to our director compensation policy described above and the 2020 incentive plan, we granted the following RSU
awards in December 2021:

Name

Richard N. Barton

Fiona P. Dias

M. Ian G. Gilchrist

Evan D. Malone

Larry E. Romrell

Mark C. Vadon

Andrea L. Wong

# of QRTEA
RSUs

14,188

The RSUs granted in December 2021 will vest on the first anniversary of the grant date, or on such earlier date that the
grantee ceases to be a director because of death or disability and, unless our board of directors determines otherwise, will
be forfeited if the grantee resigns or is removed from the board before the vesting date.

CASH DIVIDEND ADJUSTMENT

Our nonemployee directors’ outstanding restricted stock unit awards (and in Ms. Dias’ case, her outstanding deferred
stock unit awards (DSUs)) participated in the November Special Dividend (as described below in “Executive Compensation—
Compensation Discussion and Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—
Cash Dividend Adjustments”) in November 2021 and became eligible to receive cash dividend equivalent rights (and in
Ms. Dias’ case, dividend equivalent stock unit rights), subject to the same terms and conditions as the corresponding
original RSU and DSU. Since stock options did not participate in the November Special Dividend, the number of shares of
our common stock subject to, and the exercise price of, our nonemployee directors’ outstanding options were adjusted to
preserve each option’s intrinsic value and the ratio of the exercise price to market price. Ms. Dias’ DSUs also participated in
regular quarterly cash dividends payable on shares of QRTEP and became eligible to receive dividend equivalent stock
unit rights, subject to the same terms and conditions as the original DSU. For more information regarding the equity awards,
see the “Director Compensation Table” below.

STOCK OWNERSHIP GUIDELINES

Our board of directors has adopted stock ownership guidelines that generally require each nonemployee director to own
shares of our company’s stock equal to at least three times the value of their annual cash retainer fees. Nonemployee
directors have five years from the director’s initial appointment to our board to comply with these guidelines.

DIRECTOR DEFERRED COMPENSATION PLAN

Effective beginning in the fourth quarter of 2013, directors of our company are eligible to participate in the Qurate Retail,
Inc. Nonemployee Director Deferred Compensation Plan (the director deferred compensation plan), pursuant to which
eligible directors of our company can elect to defer all or any portion of their annual cash fees that they would otherwise
be entitled to receive. The deferral of such annual cash fees shall be effected by a reduction in the quarterly payment of such
annual cash fees by the percentage specified in the director’s election. Elections are required to be made in advance of
certain deadlines, which generally must be on or before the close of business on December 31 of the year prior to the year
to which the director’s election will apply, and elections must include the form of distribution, such as a lump-sum payment
or substantially equal installments over a period not to exceed ten years. Compensation deferred under the director
deferred compensation plan that otherwise would have been received prior to 2015 would earn interest income at the rate
of 9% per annum, compounded quarterly, for the period of the deferral. Compensation deferred under the director
deferred compensation plan that otherwise would have been received on or after January 1, 2015 will earn interest income
at a rate that is intended to approximate our company’s general cost of 10-year debt. For 2019, 2020 and 2021, the rate
was 7.0%, 6.75% and 6.5%, respectively.

3 0 / 2022 PROXY STATEMENT

DIR ECTO R CO M PE NS ATI ON

JOHN C. MALONE

Mr. Malone’s employment agreement (as amended) and his deferred compensation arrangements with us, as described
below, were assumed by Liberty Media’s predecessor and later Liberty Media. The term of Mr. Malone’s employment
agreement is extended daily so that the remainder of the employment term is five years. The employment agreement was
amended in June 1999 to provide for, among other things, an annual salary of $2,600 (which was increased to $3,900 in
2014), subject to increase with board approval. The employment agreement was amended in 2003 to provide for payment
or reimbursement of personal expenses, including professional fees and other expenses incurred by Mr. Malone for
estate, tax planning and other services, and for personal use of corporate aircraft and flight crew. The aggregate amount
of such payments or reimbursements and the value of his personal use of corporate aircraft was originally limited to
$500,000 per year but increased to $1 million effective January 1, 2007 by our compensation committee. Although the
“Director Compensation Table” below reflects the portion of the aggregate incremental cost of Mr. Malone’s personal use
of our corporate aircraft attributable to our company, the value of his aircraft use for purposes of his employment agreement
is determined in accordance with SIFL, which aggregated $23,757 for use of the aircraft by our company and Liberty
Media during the year ended December 31, 2021. A portion of the costs, calculated in accordance with Part 91 of the
Federal Aviation Regulations, incurred with respect to Mr. Malone were allocated to our company and reimbursed to Liberty
Media under the services agreement.

In December 2008, the compensation committee determined to modify Mr. Malone’s employment arrangements to permit
Mr. Malone to begin receiving fixed monthly payments in 2009, while he remains employed by our company, in satisfaction of
our obligations to him under a 1993 deferred compensation arrangement, a 1982 deferred compensation arrangement
and an installment severance plan, in each case, entered into with him by our predecessors (and which had been assumed
by our company). At the time of the amendment, the amounts owed to Mr. Malone under these arrangements aggregated
approximately $2.4 million, $20 million and $39 million, respectively. As a result of these modifications, Mr. Malone
receives 240 equal monthly installments, which commenced February 2009, of: (1) approximately $20,000 under the 1993
deferred compensation arrangement, (2) approximately $237,000 under the 1982 deferred compensation arrangement
and (3) approximately $164,000 under the installment severance plan. Interest ceased to accrue under the installment
severance plan once these payments began; however, interest continues to accrue on the 1993 deferred compensation
arrangement at a rate of 8% per annum and on the 1982 deferred compensation arrangement at a rate of 13% per annum.
Following certain termination events, Mr. Malone (or, in the event of Mr. Malone’s death, his beneficiaries) would be
entitled to receive the remaining payments under these arrangements, subject to certain conditions. In 2011 and 2013,
Liberty Media’s predecessor and Liberty Media, respectively, assumed all outstanding obligations under these deferred
compensation arrangements and the installment severance plan.

Under the terms of Mr. Malone’s employment agreement, he is entitled to receive upon the termination of his employment
for any reason (other than for death or “cause”), a lump sum equal to his salary for a period of five full years following
termination (calculated on the basis of $3,900 per annum, the lump sum severance payment).

As described above, Liberty Media assumed Mr. Malone’s employment agreement and all outstanding obligations
thereunder, and we will reimburse Liberty Media for our allocated portion of any such lump sum severance payments
made thereunder.

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DI RECTOR COM PENS AT IO N

DIRECTOR COMPENSATION TABLE

The following table sets forth information concerning the compensation of our nonemployee directors for 2021.

Name(1)

John C. Malone

Richard N. Barton

Fiona P. Dias

M. Ian G. Gilchrist

Evan D. Malone

David E. Rapley(10)

Larry E. Romrell

Mark C. Vadon

Andrea L. Wong

Fees
Earned
or Paid
in Cash
($)

Stock
Awards
($)(2)(3)

—

120,500(4)

115,490

121,544

115,490

150,500

115,490

110,500

115,490

Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
($)(4)

—

8,708

—

101,415(4)

—

82,286

160,500

115,490

130,500(4)

115,490

127,863(4)

115,490

—

24,350

56,925

All other
compensation
($)(5)

Total
($)

292,786(6)(7)(8) 292,786

—

27,368(9)

14,603(9)

—

7,301(9)

244,698

264,402

280,593

240,593

183,701

275,990

270,340

307,579

(1) Gregory B. Maffei who is a director of our company and a named executive officer, Michael A. George who was a director of our

company until he resigned in January 2022 and was a named executive officer, and John C. Malone, who is a director of our company,
received no compensation for serving as directors of our company during 2021. However, we are allocated a portion of the
compensation paid to Mr. Malone by Liberty Media. See footnotes (6), (7) and (8) below. David Rawlinson II was not a director of
our company in 2021.

(2) As of December 31, 2021, our directors (other than Messrs. Maffei and George, whose equity awards are listed in the “Outstanding

Equity Awards at Fiscal Year-End” table below) held the following equity awards:

John C.
Malone

Richard N.
Barton

Fiona P.
Dias

M. Ian G.
Gilchrist

Evan D.
Malone

David E.
Rapley

Larry E.
Romrell

Mark C.
Vadon

Andrea L.
Wong

Options (#)

QRTEA

RSUs & DSUs (#)

QRTEA

QRTEP

—

191,890

—

145,971

— 104,840

209,685

557,559

46,059

14,188

28,187

14,188

—

269

—

14,188

—

(3) The aggregate grant date fair value of the RSU awards has been computed in accordance with FASB ASC Topic 718, but (pursuant

to SEC regulations) without reduction for estimated forfeitures. For a description of the assumptions applied in these calculations,
see Note 11 to our consolidated financial statements for the year ended December 31, 2021 (which are included in the 2021
Form 10-K).

(4)

Includes 2021 compensation that was earned but not paid in cash because it was deferred under the director deferred compensation
plan. Amounts deferred are reflected below:

Name

Richard N. Barton

David E. Rapley

Mark C. Vadon

Andrea L. Wong

2021
Deferred
Compensation
($)

2021 Above
Market Earnings
on Accrued Interest
($)

120,500

101,415

130,500

127,863

8,708

82,286

24,350

56,925

(5) Liberty Media makes available to our directors tickets to various sporting events with no aggregate incremental cost attributable to

any single person.

3 2 / 2022 PROXY STATEMENT

DIR ECTO R CO M PE NS ATI ON

(6)

Includes the amount of Mr. Malone’s base salary of $975 and the following amounts, in each case, which were allocated to our
company under the services agreement:

Reimbursement for personal accounting services

Compensation related to personal use of corporate aircraft (a)

Tax payments made on behalf of Mr. Malone

(a) Calculated based on aggregate incremental cost of such usage to our company.

Also includes miscellaneous personal expenses, such as courier charges.

Amounts ($)

15,000

40,770

226,888

(7)

(8)

(9)

Liberty Media owns an apartment in New York City which is primarily used for business purposes. Mr. Malone makes use of this
apartment and a company car and driver for personal reasons. From time to time, we also pay the cost of miscellaneous shipping
and catering expenses for Mr. Malone.

Includes $7,250 in matching contributions allocated to our company with respect to the Liberty Media 401(k) Savings Plan.

Includes $927 in life insurance premiums allocated to our company for the benefit of Mr. Malone.

Includes the value of the cash dividend equivalent rights received by holders of RSUs in connection with the November Special
Dividend and the value of dividend equivalent stock unit rights received by holders of DSUs in connection with the November Special
Dividend and regular quarterly cash dividends paid on shares of QRTEP to the extent such amounts were not factored into the
grant date fair value of the underlying awards computed in accordance with FASB ASC Topic 718, but (pursuant to SEC regulations)
without reduction for estimated forfeitures.

(10) Mr. Rapley resigned from our board, effective August 18, 2021.

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PRO POSAL 2— THE AUD ITOR S R AT I F I C AT IO N P RO P OS A L

Proposal 2—The Auditors Ratification
Proposal

What am I being
asked to vote on
and how should I
vote?

We are asking our stockholders to ratify the selection of KPMG LLP as
our independent auditors for the fiscal year ending December 31,
2022.

Even if the selection of KPMG LLP is ratified, the audit committee of our
board of directors in its discretion may direct the appointment of a different
independent accounting firm at any time during the year if our audit committee
determines that such a change would be advisable. In the event our
stockholders fail to ratify the selection of KPMG LLP, our audit committee
will consider it as a direction to select other auditors for the year ending
December 31, 2022.

A representative of KPMG LLP is expected to be available to answer appropriate questions at the annual meeting and will
have the opportunity to make a statement if he or she so desires.

VOTE AND RECOMMENDATION

The affirmative vote of a majority of the combined voting power of the outstanding shares of our common stock that are
present in person or by proxy, and entitled to vote at the annual meeting, voting together as a single class, is required to
approve the auditors ratification proposal.

OUR BOARD RECOMMENDS A VOTE FOR THIS PROPOSAL

The board of directors recommends that you vote FOR this proposal because KPMG LLP is an
independent firm with few ancillary services and reasonable fees, and has significant industry and
financial reporting expertise.

AUDIT FEES AND ALL OTHER FEES

The following table presents fees for professional audit services rendered by KPMG LLP for the audit of our consolidated
financial statements for 2021 and 2020 and fees billed for other services rendered by KPMG LLP:

Audit fees
Audit related fees(1)

Audit and audit related fees

Tax fees(2)

Total fees

2021

2020

$8,399,200

8,651,600

—

495,000

8,399,200

9,146,600

766,000

747,800

$9,165,200

9,894,400

(1) Audit related fees consist of professional consultations and audits in connection with acquisitions or divestitures (including carve-

out audits in connection with divestitures).

(2) Tax fees consist of tax compliance and consultations regarding the tax implications of certain transactions.

Our audit committee has considered whether the provision of services by KPMG LLP to our company other than auditing
is compatible with KPMG LLP maintaining its independence and believes that the provision of such other services is
compatible with KPMG LLP maintaining its independence.

3 4 / 2022 PROXY STATEMENT

PRO PO SAL 2—THE AU DITO RS R ATI FI CATION P ROP OS AL

POLICY ON PRE-APPROVAL OF AUDIT AND PERMISSIBLE NON-AUDIT
SERVICES OF INDEPENDENT AUDITOR

Our audit committee has adopted a policy regarding the pre-approval of all audit and permissible non-audit services
provided by our independent auditor. Pursuant to this policy, our audit committee has approved the engagement of our
independent auditor to provide the following services (all of which are collectively referred to as pre-approved services):

• audit services as specified in the policy, including (i) financial audits of our company and our subsidiaries, (ii) services
associated with registration statements, periodic reports and other documents filed or issued in connection with
securities offerings (including comfort letters and consents), (iii) attestations of management reports on our internal
controls and (iv) consultations with management as to accounting or disclosure treatment of transactions;

• audit related services as specified in the policy, including (i) due diligence services, (ii) financial statement audits of

employee benefit plans, (iii) consultations with management as to the accounting or disclosure treatment of
transactions, (iv) attest services not required by statute or regulation, (v) certain audits incremental to the audit of
our consolidated financial statements, (vi) closing balance sheet audits related to dispositions, and (vii) general
assistance with implementation of the requirements of certain SEC rules or listing standards; and

• tax services as specified in the policy, including federal, state, local and international tax planning, compliance and

review services, and tax due diligence and advice regarding mergers and acquisitions.

Notwithstanding the foregoing general pre-approval, if, in the reasonable judgment of our Chief Accounting Officer and
Principal Financial Officer, an individual project involving the provision of pre-approved services is likely to result in fees in
excess of $100,000, or if individual projects under $100,000 are likely to equal or exceed $500,000 during the period
between the regularly scheduled meetings of the audit committee, then such projects will require the specific pre-approval
of our audit committee. Our audit committee has delegated the authority for the foregoing approvals to the chairman of
the audit committee, subject to his subsequent disclosure to the entire audit committee of the granting of any such approval.
M. Ian G. Gilchrist currently serves as the chairman of our audit committee. In addition, the independent auditor is
required to provide a report at each regularly scheduled audit committee meeting on all pre-approved services incurred
during the preceding quarter. Any engagement of our independent auditors for services other than the pre-approved
services requires the specific approval of our audit committee.

Our pre-approval policy prohibits the engagement of our independent auditor to provide any services that are subject to
the prohibition imposed by Section 201 of the Sarbanes-Oxley Act.

All services provided by our independent auditor during 2021 were approved in accordance with the terms of the policy in
place.

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AUD IT COM MI TTEE R EPO RT

Audit Committee Report

Each member of the audit committee is an independent director as determined by our board of directors, based on the
listing standards of Nasdaq. Each member of the audit committee also satisfies the SEC’s independence requirements for
members of audit committees. Our board of directors has determined that Mr. Gilchrist is an “audit committee financial
expert” under applicable SEC rules and regulations.

The audit committee reviews our financial reporting process on behalf of our board of directors. Management has primary
responsibility for establishing and maintaining adequate internal controls, for preparing financial statements and for the
public reporting process. Our independent auditor, KPMG LLP, is responsible for expressing opinions on the conformity of
our audited consolidated financial statements with U.S. generally accepted accounting principles. Our independent auditor
also expresses its opinion as to the effectiveness of our internal control over financial reporting.

Our audit committee has reviewed and discussed with management and KPMG LLP our most recent audited consolidated
financial statements, as well as management’s assessment of the effectiveness of our internal control over financial
reporting and KPMG LLP’s evaluation of the effectiveness of our internal control over financial reporting. Our audit
committee has also discussed with KPMG LLP the matters required to be discussed by the applicable requirements of the
Public Company Accounting Oversight Board (the PCAOB) and the SEC, including that firm’s judgment about the quality
of our accounting principles, as applied in its financial reporting.

KPMG LLP has provided our audit committee with the written disclosures and the letter required by the applicable
requirements of the PCAOB regarding KPMG LLP’s communications with the audit committee concerning independence,
and the audit committee has discussed with KPMG LLP that firm’s independence from the company and its subsidiaries.

Based on the reviews, discussions and other considerations referred to above, our audit committee recommended to our
board of directors that the audited financial statements be included in the 2021 Form 10-K.

Submitted by the Members of the Audit Committee

M. Ian G. Gilchrist
Fiona P. Dias
Larry E. Romrell

3 6 / 2022 PROXY STATEMENT

EX ECU TI VE O FF ICE RS

Executive Officers

The following lists the executive officers of our company (other than David Rawlinson II, our President and Chief Executive
Officer, and Gregory B. Maffei, our Chairman of the Board, each of whom also serve as directors of our company and
who are listed under “Proposal 1—The Election of Directors Proposal”), their ages and a description of their business
experience, including positions held with our company. All positions referenced in the table below include, where applicable,
positions with the respective company’s predecessors.

Our executive officers will serve in such capacities until their respective successors have been duly elected and have been
qualified, or until their earlier death, resignation, disqualification or removal from office.

Brian J. Wendling

Principal Financial Officer
and Chief Accounting Officer
Age: 49

Current Positions

Prior Positions/Experience

• Chief Accounting Officer and Principal Financial Officer of

our company since January 2020 and July 2019,
respectively

GCI Liberty from January 2020 and July 2019, respectively—
December 2020

• Chief Accounting Officer and Principal Financial Officer of
Liberty Media and Liberty Broadband since January 2020
and July 2019, respectively, and LMAC since
November 2020

• Senior Vice President and Controller of each of our
company, Liberty Media and Liberty Broadband from
January 2016—December 2019 and GCI Liberty from
March 2018—December 2019

• Senior Vice President and Chief Financial Officer of

• Senior Vice President and Controller of Liberty TripAdvisor

Liberty TripAdvisor since January 2016

from August 2014—December 2015

• Director of comScore, Inc. since March 2021

• Senior Vice President of Liberty Expedia from

March 2016—July 2019

• Vice President and Controller of our company from

November 2011—December 2015, Liberty Media from
November 2011—December 2015 and Liberty Broadband
from October 2014—December 2015

• Various positions with Liberty Media and Qurate Retail

since 1999

Albert E. Rosenthaler

Chief Corporate Development Officer
Age: 62

Current Positions

Prior Positions/Experience

• Chief Corporate Development Officer of our company

• Chief Corporate Development Officer of GCI Liberty from

since October 2016

March 2018—December 2020

• Chief Corporate Development Officer of Liberty Media,

• Chief Corporate Development Officer of Liberty Expedia

Liberty TripAdvisor and Liberty Broadband since
October 2016 and LMAC since November 2020

• Director of Tripadvisor since February 2016

from October 2016—July 2019

• Chief Tax Officer of our company, Liberty Media, Liberty

TripAdvisor and Liberty Broadband from
Jan 2016—September 2016

• Chief Tax Officer of Liberty Expedia from

March 2016—September 2016

• Senior Vice President of our company from

April 2002—December 2015, Liberty Media from
May 2007—December 2015, Liberty TripAdvisor from
July 2013—December 2015, Liberty Broadband from
June 2014—December 2015

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EXECU TIVE OF F ICERS

Renee L. Wilm

Chief Legal Officer and Chief Administrative Officer
Age: 48

Current Positions

Prior Positions/Experience

• Chief Legal Officer and Chief Administrative Officer of our

• Chief Legal Officer of GCI Liberty from September 2019 to

company since September 2019 and January 2021,
respectively

• Chief Legal Officer and Chief Administrative Officer of

Liberty Media, Liberty TripAdvisor and Liberty Broadband
since September 2019 and January 2021, respectively, and
LMAC since November 2020 and January 2021,
respectively

• Director of LMAC since January 2021

December 2020

• Prior to September 2019, Senior Partner with the law firm
Baker Botts L.L.P., where she represented our company,
Liberty Media, Liberty TripAdvisor, Liberty Broadband and
GCI Liberty and their predecessors for over twenty years,
specializing in mergers and acquisitions, complex capital
structures and shareholder arrangements, as well as
securities offerings and matters of corporate governance
and securities law compliance; while at Baker Botts, was a
member of the Executive Committee, the East Coast
Corporate Department Chair and Partner-in-Charge of the
New York office

3 8 / 2022 PROXY STATEMENT

EX ECUTIV E COM P ENS AT IO N

Executive Compensation

This section sets forth information relating to, and an analysis and discussion of, compensation paid by our company to
the following persons (who we collectively refer to as our named executive officers):

GREGORY B.
MAFFEI

Chairman of the
Board

DAVID
RAWLINSON II

MICHAEL A.
GEORGE

BRIAN J.
WENDLING

ALBERT E.
ROSENTHALER

RENEE L.
WILM

President and
Chief Executive
Officer

Former President
and Chief
Executive Officer

Chief Accounting
Officer and
Principal
Financial Officer

Chief Corporate
Development
Officer

Chief Legal
Officer and Chief
Administrative
Officer

Effective August 1, 2021, Mr. Rawlinson began serving as President and Chief Executive Officer-Elect, with Mr. George
continuing to serve as Chief Executive Officer, and effective October 1, 2021, Mr. Rawlinson succeeded Mr. George as Chief
Executive Officer, with Mr. George assuming the role of Senior Advisor. Mr. George stepped down from his role as Senior
Advisor on December 31, 2021.

Compensation Philosophy

WHAT WE DO

WHAT WE DO NOT DO

• A significant portion of compensation is at-risk and

• Our compensation practices do not encourage

performance-based.

excessive risk taking.

• Performance targets for our executives support the

• We do not provide tax gross-up payments in

long-term growth of the company.

connection with taxable income from perquisites.

• We have clawback provisions for equity-based

• We do not engage in liberal share recycling.

incentive compensation.

• We have stock ownership guidelines for our executive

officers.

• We review our executives’ base salaries on an annual

basis.

COMPENSATION DISCUSSION AND ANALYSIS

COMPENSATION OVERVIEW

Our compensation committee of our board of directors has responsibility for establishing, implementing and regularly
monitoring adherence to our compensation philosophy. That philosophy seeks to align the interests of the named executive
officers with those of our stockholders, with the ultimate goal of appropriately motivating our executives to increase
long-term stockholder value. To that end, the compensation packages provided to the named executive officers include

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EXECU TIVE COMP ENSAT IO N

significant performance-based bonuses and significant equity incentive awards, including equity awards that vest
multiple years after initial grant and equity awards that are performance-based.

Our compensation committee seeks to approve a compensation package for each named executive officer that is
commensurate with the responsibilities and proven or expected performance of that executive and that is competitive
relative to the compensation packages paid to similarly situated executives in other companies. Our compensation
committee believes that our compensation packages should assist our company in attracting and retaining key executives
critical to our long-term success.

Our feedback from stockholders on this pay philosophy has been positive. At our 2020 annual stockholder meeting,
stockholders representing a majority of the aggregate voting power of Qurate Retail present and entitled to vote on our
say-on-pay proposal voted in favor of, on an advisory basis, our executive compensation disclosed in our proxy statement
for the 2020 annual meeting of stockholders. No material changes were implemented to our executive compensation program
as a result of this vote. At our 2017 annual stockholder meeting, stockholders elected to hold a say-on-pay vote every
three years and our board of directors adopted this as the frequency at which future say-on-pay votes would be held.

SERVICES AGREEMENT

In September 2011, we entered into a services agreement with our former subsidiary (the services agreement), which
agreement was assumed in January 2013 by its former subsidiary, then-known as Liberty Spinco, Inc. (currently known as
Liberty Media). In December 2019, the services agreement was amended (the amended services agreement) in
connection with Liberty Media entering into a new five-year employment agreement with Mr. Maffei (the 2019 Maffei
Employment Agreement). Under the amended services agreement, our company establishes, and pays or grants directly
to Mr. Maffei, our allocable portion of his annual performance-based cash bonus, his annual equity-based awards and
his Upfront Awards (as defined below), and we reimburse Liberty Media for our allocable portion of the other components
of Mr. Maffei’s compensation, which are described in more detail below in “—Executive Compensation Arrangements—
Gregory B. Maffei—2019 Maffei Employment Agreement.” Under the 2019 Maffei Employment Agreement, Mr. Maffei’s
compensation is allocated across Liberty Media, our company and each of Liberty Broadband and Liberty TripAdvisor (each
a Service Company, or, collectively the Service Companies) based on two factors, each weighted 50%: (i) the relative
market capitalization of each series of stock of each company and (ii) the average of (a) the percentage allocation of time
for all Liberty Media employees across all companies and (b) Mr. Maffei’s percentage allocation of time across all
companies, unless a different allocation method is agreed. Our allocable portion of Mr. Maffei’s annual compensation was
17% in 2021. Pursuant to the amended services agreement, in 2021, we also reimbursed Liberty Media for the portion
of the base salary and certain other compensation Liberty Media paid to our employees that was allocable to us for
estimated time spent by each such employee related to our company. All of Mr. George’s and Mr. Rawlinson’s compensation
was paid by QVC, and none of their time was allocated to Liberty Media because Mr. George and Mr. Rawlinson did not
provide any services to Liberty Media in 2021. The 2021 performance-based bonuses earned by the named executive
officers of our company were paid directly by our company. During 2021, the estimate of the allocable percentages of time
spent performing services for Liberty Media, on the one hand, and our company, on the other hand, were reviewed
quarterly by our audit committee for appropriateness. The salaries and certain perquisite information included in the
“Summary Compensation Table” below (other than with respect to Mr. George and Mr. Rawlinson, whose cash compensation
is paid directly by QVC) include the portion of the compensation allocable to our company and for which we reimbursed
Liberty Media and do not include the portion of the compensation allocable to Liberty Media or any of the other Service
Companies. During the year ended December 31, 2021, the weighted average percentage of each such named executive
officer’s time that was allocated to our company was: Mr. Wendling—11%; Mr. Rosenthaler—19%; and Ms. Wilm—20%.

ROLE OF INDEPENDENT COMPENSATION CONSULTANT

Prior to entering into the amended services agreement with Liberty Media in connection with the 2019 Maffei Employment
Agreement, our compensation committee engaged Frederic W. Cook & Co., Inc. (FW Cook), an independent and
experienced compensation consultant, to assist in determining the reasonableness of compensation to be allocated to our
company under the amended services agreement.

In order to assess the reasonableness of compensation, FW Cook evaluated the market value of Mr. Maffei’s role at our
company and the proposed allocation to our company under the service arrangement. Given the unique nature of Mr. Maffei’s
role at our company, FW Cook evaluated the market value of the executive job at our company through two different
lenses: Chairman of the Board and managing partner of a private equity firm.

4 0 / 2022 PROXY STATEMENT

EX ECUTIV E COM P ENS AT IO N

In assessing the reasonableness of pay as Chairman of the Board, FW Cook and the compensation committee reviewed
pay data for companies comparable to ours, including companies in the retail industry, and companies with which we may
compete for executive talent and stockholder investment and also included companies in those industries that are similar
to our company in size, geographic location or complexity of operations. In assessing the reasonableness of pay as a
managing partner of a private equity firm, FW Cook and the compensation committee reviewed survey data regarding
the compensation of private equity professionals.

SETTING EXECUTIVE COMPENSATION

In making its compensation decision for each named executive officer, our compensation
committee considers the following:

• each element of the named executive officer’s compensation, including salary,

performance-based bonus, equity compensation, perquisites and other personal
benefits, and weights equity compensation most heavily;

Pay-Setting

• the financial performance of our company compared to internal forecasts and budgets;

• the scope of the named executive officer’s responsibilities;

• the competitive nature of the compensation packages offered based on general industry
knowledge of the retail and commerce industries and periodic use of survey information
provided by Mercer (US), Inc. (Mercer) and FW Cook; and

• the performance of the group reporting to the named executive officer.

In addition, when setting compensation, our compensation committee considers the recommendations obtained from
Mr. Maffei as to all elements of the compensation packages of Messrs. George, Rawlinson, Wendling, and Rosenthaler
and Ms. Wilm. To make these recommendations, Mr. Maffei evaluates the performance and contributions of each such
named executive officer. He also considers whether the pay packages afforded to such named executive officers are
competitive and are aligned internally. He also evaluates the named executive officer’s performance against individual,
department and corporate goals.

In December 2019, our compensation committee approved the amended services agreement, which established the
terms and conditions of our allocable portion of Mr. Maffei’s compensation for the term of the 2019 Maffei Employment
Agreement. See “— Services Agreements” above. Prior to entering into the amended services agreement with Liberty
Media, our compensation committee reviewed information from FW Cook with respect to Chairman of the Board
compensation packages at comparable retailers and e-commerce companies.

In September 2015, prior to our compensation committee approving a new five-year employment agreement with Mr. George
(the George Employment Agreement) and granting equity awards in connection with its execution, our compensation
committee considered the recommendation of Mr. Maffei with respect to Mr. George’s compensation package and reviewed
compensation data from companies similar to QVC, which was compiled by Mercer, as a reference point for the proposed
new compensation arrangement. In addition, in connection with granting the New CEO Term Options (as defined below) to
Mr. George, the compensation committee and Mr. Maffei reviewed a compensation study prepared by Mercer and in
November 2020, our compensation committee approved an amendment to the George Employment Agreement (the George
Employment Agreement Extension). See “— Executive Compensation Arrangements—Michael A. George” below for a
description of the terms of these arrangements.

In July 2021, our compensation committee approved a new employment agreement with Mr. Rawlinson running through
December 31, 2024 (the Rawlinson Employment Agreement) and granted equity awards in connection with the execution
of the Rawlinson Employment Agreement. Prior to our compensation committee’s approval of the Rawlinson Employment
Agreement, our compensation committee reviewed relevant comparable CEO cash and equity compensation components
as a reference point for the proposed new compensation arrangements and considered the recommendation of Mr. Maffei
with respect to Mr. Rawlinson’s annual compensation package, which had been structured giving consideration to
components of cash and equity compensation paid to CEOs of comparable retailers and e-commerce companies. Based
on this review, our compensation committee determined to confirm and approve the proposed arrangements. See
“—Executive Compensation Arrangements—David Rawlinson II” for a description of Mr. Rawlinson’s employment
agreement.

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EXECU TIVE COMP ENSAT IO N

ELEMENTS OF 2021 EXECUTIVE COMPENSATION

For 2021, the principal components of compensation for the named executive officers were:

• base salary;

• a performance-based bonus, payable in cash;

• performance-based restricted stock units;

• a one-time sign-on bonus, a one-time grant of time-based restricted stock units and a one-time grant of time-vested

stock options to Mr. Rawlinson in connection with the commencement of his employment;

• a one-time grant of time-based restricted stock units to Mr. George per the terms of the George Employment Agreement

Extension;

• a grant of restricted shares with respect to QRTEB stock to Mr. Maffei in connection with the Letter Agreement (as

defined and described below); and

• perquisites and other limited personal benefits.

BASE SALARY

Our compensation committee believes base salary should be a relatively smaller portion of each named executive
officer’s overall compensation package, allowing for a greater portion to be performance based, thereby aligning the
interests of our executives more closely with those of our stockholders. The base salaries of the named executive officers
are reviewed on an annual basis (other than Mr. Maffei’s base salary, which is set by the terms of his employment
agreement), as well as at the time of any change in responsibilities. Typically, after establishing a named executive officer’s
base salary, salary increases are limited to cost-of-living adjustments, adjustments based on changes in the scope of the
named executive officer’s responsibilities, and adjustments to align the named executive officer’s salary level with those of
our other named executive officers.

After completion of the annual review in December 2020, the 2021 base salaries of Messrs. Wendling and Rosenthaler
and Ms. Wilm were increased by 18.5%, 16.2% and 8%, respectively, after a review of the competitive compensation
packages offered to similarly situated executives, a cost-of-living adjustment, and in the case of Ms. Wilm, consideration of
her expanded role as our Chief Administrative Officer. For 2021, Mr. Maffei’s salary remained at $3,000,000 as prescribed
by the 2019 Maffei Employment Agreement. For 2021, Mr. George’s base salary increased to $1,500,000 per the terms
of the George Employment Agreement Extension and Mr. Rawlinson’s base salary was $1,250,000 per the terms of the
Rawlinson Employment Agreement.

2021 PERFORMANCE-BASED BONUSES

Overview. For 2021, our compensation committee adopted an annual, performance-based bonus program for each of
Messrs. Maffei, Wendling and Rosenthaler and Ms. Wilm. Mr. George and Mr. Rawlinson participated in a separate
performance-based bonus program, described under “— QVC Bonus Awards” below. The 2021 bonus program was
comprised of two components: a bonus amount payable based on each participant’s individual performance (the Individual
Performance Bonus) and a bonus amount payable based on the corporate performance of our company, Liberty Media,
Liberty TripAdvisor and Liberty Broadband (the Corporate Performance Bonus).

4 2 / 2022 PROXY STATEMENT

Individual Performance Bonus
(60% weighting)

• Based on each named executive officers’

personal, department and corporate
related goals

• Named executive officer provided a

self-evaluation of their achievements, and
in the case of Messrs. Wendling and
Rosenthaler and Ms. Wilm, Mr. Maffei also
provided an evaluation

• Compensation committee reviewed goals,
evaluations and achievements before
approving a specific payout for each
named executive officer

ANNUAL
PERFORMANCE
BONUS

EX ECUTIV E COM P ENS AT IO N

Corporate Performance Bonus
(40% weighting)

• 30% based on consolidated financial
results of all subsidiaries and major
investments within our company, Liberty
Media, Liberty TripAdvisor and Liberty
Broadband

◦ 10% based on consolidated revenue

results

◦ 10% based on consolidated Adjusted

OIBDA results

◦ 10% based on consolidated free cash

flow results

• 10% based on corporate level

achievements such as merger and
acquisition activity, investments, financings,
ESG initiatives, SEC/audit compliance,
litigation management and tax compliance

Pursuant to the 2019 Maffei Employment Agreement, Mr. Maffei was assigned a target bonus opportunity under the
performance-based bonus program equal to $17 million in the aggregate for Liberty Media, our company and each of the
other Service Companies. That bonus amount was split among, and payable directly by, our company, Liberty Media
and each of the Service Companies, with payment subject to the achievement of one or more performance metrics as
determined by the applicable company’s compensation committee. In 2021, the portion of Mr. Maffei’s aggregate target
bonus amount allocated to our company was 17% or $2,890,000. The portions of Mr. Maffei’s aggregate target bonus
amount allocated to each of Liberty Media, Liberty Broadband and Liberty TripAdvisor pursuant to the amended services
agreements were 41% (or $6,970,000), 37% (or $6,290,000) and 5% (or $850,000), respectively.

Messrs. Maffei, Wendling and Rosenthaler and Ms. Wilm were assigned in March 2021 a maximum bonus opportunity
under the performance-based bonus program, which would be allocated to each of Qurate Retail, Liberty Media, Liberty
Broadband and Liberty TripAdvisor in the same percentage as the allocation for Mr. Maffei’s target bonus opportunity (the
Maximum Performance Bonus). The portion of the Maximum Performance Bonus allocated to the Qurate Retail
program were $5,780,000, $204,638, $374,405 and $374,544 for Messrs. Maffei, Wendling, Rosenthaler and Ms. Wilm,
respectively (the Qurate Retail Maximum Performance Bonus). The Qurate Retail Maximum Performance Bonus amounts
are up to 200% of Mr. Maffei’s target annual bonus allocated to our company under the 2019 Maffei Employment
Agreement and our company’s allocable portion of up to 200% of base pay for each of Messrs. Wendling and Rosenthaler
and Ms. Wilm. The portion of the Maximum Performance Bonus allocated to Liberty Media, Liberty Broadband and
Liberty TripAdvisor were $13,940,000, $12,580,000 and $1,700,000, respectively, for Mr. Maffei, $493,538, $445,388 and
$60,188, respectively, for Mr. Wendling, $902,977, $814,882 and $110,119, respectively, for Mr. Rosenthaler and $903,312,
$815,184 and $110,160, respectively, for Ms. Wilm.

Each participant was entitled to receive from our company an amount (the Qurate Retail Maximum Individual Bonus)
equal to 60% of the Qurate Retail Maximum Performance Bonus for that participant. The Qurate Retail Maximum Individual
Bonus was subject to reduction based on a determination of the participant’s achievement of qualitative criteria established
with respect to the services to be performed by the participant on behalf of our company. Under the corollary programs
of Liberty Media and the other Service Companies, each participant was entitled to receive from Liberty Media and the other
Service Companies a maximum individual bonus equal to 60% of his or her Maximum Performance Bonus allocable to
Liberty Media and each other Service Company subject to reduction based on a determination of the participant’s
achievement of qualitative criteria established with respect to the services to be performed by the participant on behalf of
Liberty Media and the other Service Companies. Our compensation committee believes this construct was appropriate in
light of the amended services agreement and the fact that each participant splits his or her professional time and duties.

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EXECU TIVE COMP ENSAT IO N

Each participant was entitled to receive from our company an amount (the Qurate Retail Maximum Corporate Bonus)
equal to 40% of his or her Qurate Retail Maximum Performance Bonus, of which 30% would be based on a determination
of the consolidated corporate performance of our company, Liberty Media and the other Service Companies and 10%
would be based on corporate-level achievements. Under the corollary programs of Liberty Media and the other Service
Companies, each participant was entitled to receive from Liberty Media and the other Service Companies a bonus that is
40% of each of Liberty Media’s and the other Service Companies’ allocable portion of the Maximum Performance Bonus,
which were based on a determination of the consolidated corporate performance of our company, Liberty Media and the
other Service Companies and a determination of corporate-level achievements.

In December 2021, our compensation committee, the Liberty Media compensation committee and the compensation
committees of the other Service Companies reviewed contemporaneously our respective named executive officers’
individual performance and consolidated corporate performance under each company’s program. Notwithstanding this joint
effort, our compensation committee retained sole and exclusive discretion with respect to the approval of award terms
and amounts payable under our bonus program.

Individual Performance Bonus. Our compensation committee reviewed the individual performance of each participant
to determine the reductions that would apply to each participant’s Qurate Retail Maximum Individual Bonus. Our
compensation committee took into account a variety of factors, without assigning a numerical weight to any single
performance measure. This determination was based on reports to our board, the observations of committee members
throughout the year, executive self-evaluations and, with respect to the participants other than Mr. Maffei, the observations
and input of Mr. Maffei. In evaluating the performance of each of the participants for determining the reduction that
would apply to each named executive officer’s Qurate Retail Maximum Individual Bonus, the following performance
objectives related to our company which had been assigned to each participant for 2021 were considered:

GREGORY B. MAFFEI

Chairman of the Board
Performance Objectives:

• Monitor cost synergies against plan

• Provide leadership to Qurate Retail Group to drive

• Oversee opportunistic investments

strategies, improve brand and increase shareholder
value

• Assess capital allocation strategies, capital structure

and tax efficiency initiatives

• Assist with recruitment of senior officers, including

new CEO

BRIAN J. WENDLING

Chief Accounting Officer and Principal Financial Officer
Performance Objectives:

• Ensure timely and accurate internal and external

financial reports

• Support ongoing assessments and improvements to

• Support development and goals of management

team

• Continue development of ESG program

• Continued development and training of accounting,

reporting and internal audit staff

• Assist other executives in accounting and financial

related due diligence on potential acquisition targets

the company’s internal control structure

• Assist treasury and management on capital allocation

• Manage company’s capital expenditure plan with a

particular focus on information technology

4 4 / 2022 PROXY STATEMENT

EX ECUTIV E COM P ENS AT IO N

• Continue oversight of tax and corporate development

departments

ALBERT E. ROSENTHALER

Chief Corporate Development Officer
Performance Objectives:

• Evaluate potential merger, acquisition and strategic

investment opportunities

• Assess capital structure and capital allocation

RENEE L. WILM

Chief Legal Officer and Chief Administrative Officer

Performance Objectives:

• Continue to develop and refine active government

• Support corporate development in the evaluation of

acquisition targets and strategic investments; provide
legal support for execution of selected opportunities

• Support treasury and management in evaluation of
capital structures, capital allocation and liquidity
solutions

• Support subsidiary legal departments with regard to

litigation, corporate matters and compliance, including
privacy and cyber security concerns

affairs program

• Oversee executive recruiting and talent development
at our company and assist with succession planning
at QVC, including search for new CEO

• Provide support for ESG initiative

Following a review of the participants’ performance and a review of the time allocated to matters for our company, our
compensation committee determined to pay each participant the following portion of his or her Qurate Retail Maximum
Individual Bonus:

Name
Gregory B. Maffei
Brian J. Wendling
Albert E. Rosenthaler
Renee L. Wilm

Qurate Retail
Maximum Individual
Bonus
$3,468,000
$ 122,783
$ 224,643
$ 224,726

Percentage Payable
62.50%
81.25%
81.25%
87.50%

Aggregate
Dollar Amount
$2,167,500
$
99,761
$ 182,523
$ 196,636

Corporate Performance Bonus. Our compensation committee then made a determination as to the portion, if any, that
would be payable to each participant for his or her Qurate Retail Maximum Corporate Bonus, a portion of which is attributable
to consolidated financial measures of the Operating Companies (as defined below) as a group and a portion of which is
attributable to corporate-level achievements. In making this determination, our compensation committee reviewed forecasts
of 2021 Adjusted OIBDA (as defined below), revenue and free cash flow (financial measures) for QVC, HSN, Inc.,
Cornerstone Brands, Inc., Zulily, LLC, Sirius XM, Braves Holdings, LLC, Formula 1, GCI Holdings, LLC and proportionate
shares of Live Nation, Charter and Tripadvisor (collectively, the Operating Companies), all of which forecasts were prepared
in December 2021 and are set forth in the table below. Also set forth in the table below are the corresponding actual
financial measures achieved for 2021, which deviated from our forecasts as indicated below. Although forecasted revenue,
Adjusted OIBDA and free cash flow deviated from the actual result, none of the deviations would have affected the
amounts paid under the corporate performance bonus portion of the program.

For purposes of the bonus program, Adjusted OIBDA is defined as operating income (loss) plus depreciation and
amortization, stock-based compensation, separately reported litigation settlements, transaction related costs (including
acquisition, restructuring, integration, and advisory fees), impairments and fire related costs. Sirius XM, Live Nation
Entertainment, Inc., Charter, and Tripadvisor do not report Adjusted OIBDA information. As a result, in order to determine
their financial results, we used the most similar non-GAAP measures reported by each of these companies. We used
Adjusted EBITDA as reported by Sirius XM, Charter, and Tripadvisor and Adjusted Operating Income, or AOI, as reported
by Live Nation. For a definition of Adjusted EBITDA as defined by Sirius XM, see Sirius XM’s Annual Report on Form 10-K for

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EXECU TIVE COMP ENSAT IO N

the year ended December 31, 2021, filed on February 1, 2022. For a definition of Adjusted EBITDA as defined by Charter,
see Charter’s Annual Report on Form 10-K for the year ended December 31, 2021, filed on January 28, 2022. For a
definition of Adjusted EBITDA as defined by Tripadvisor, see Tripadvisor’s Annual Report on Form 10-K for the year ended
December 31, 2021, filed on February 18, 2022. For a definition of AOI as defined by Live Nation, see Live Nation’s
Annual Report on Form 10-K for the year ended December 31, 2021, filed on February 23, 2022.

Revenue(1)
Adjusted OIBDA(1)
Free Cash Flow(1)(2)

(dollar amounts in millions)

2021 Forecast

2021 Actual

$44,328

$12,286

$ 5,996

$44,526

$12,317

$ 6,304

Actual /
Forecast

0.45%

0.25%

5.14%

(1) Revenue, Adjusted OIBDA and Free Cash Flow amounts represent the consolidated summation of the Operating Companies. All

calculations were performed on a constant currency basis.

(2) Defined for purposes of the bonus program as Adjusted OIBDA less all other operating and investing items on a constant currency

basis.

Based on a review of the above forecasts and consideration of Operating Company performance against plan for these
financial measures by the compensation committees of our company, Liberty Media, Liberty Broadband and Liberty
TripAdvisor, the compensation committees determined that the financial measures relating to the Operating Companies
were achieved to the extent described below:

Financial Measure
Revenue(1)
Adjusted OIBDA(1)
Free Cash Flow(1)(2)

Percentage Payable

6% of a possible 10%

9% of a possible 10%

8% of a possible 10%

Percentage payable was based on 2021 forecasted financial measures compared to 2021 budgeted financial measures,
with a 7% payout if forecasted financial measures equaled budget financial measures, and a payout range of 0% to 10% if
forecasted financial measures were less than or greater than budgeted financial measures. Our compensation committee
then translated the achievement of these financial measures into a percentage payable (23% of a possible 30%, or 76.67%)
to each participant of his or her Qurate Retail Maximum Corporate Bonus related to financial measures, as follows:

Name

Gregory B. Maffei

Brian J. Wendling

Albert E. Rosenthaler

Renee L. Wilm

Qurate Retail
Maximum
Corporate
Bonus Related
to Financial
Measures

Percentage
Payable

Aggregate
Dollar Amount

$1,734,000

76.67% $1,329,400

61,391

76.67% $

47,067

$ 112,322

76.67% $

86,113

$ 112,363

76.67% $

86,145

In December 2021, our compensation committee considered combined corporate-level achievements for our company,
Liberty Media and each of the other Service Companies in determining that 8.5% of a possible 10% of a portion of the
Qurate Retail Maximum Corporate Bonus would be payable to each participant. In making this determination, the
compensation committee considered merger and acquisition activity, investments, financings, ESG initiatives, SEC/audit
compliance, litigation management and tax compliance. The achievements and percentage payable translated to the following
payment for each participant:

4 6 / 2022 PROXY STATEMENT

Name

Gregory B. Maffei

Brian J. Wendling

Albert E. Rosenthaler

Renee L. Wilm

EX ECUTIV E COM P ENS AT IO N

Qurate Retail
Maximum
Corporate Bonus
Related to
Corporate-Level
Achievements

$578,000

$ 20,464

$ 37,441

$ 37,454

Percentage
Payable

Aggregate
Dollar Amount

85%

$491,300

$ 17,394

$ 31,825

$ 31,836

Aggregate Results. The following table presents information concerning the aggregate 2021 performance-based bonus
amounts payable to each named executive officer by our company (other than Messrs. George and Rawlinson), after giving
effect to the determinations described above.

Name

Gregory B. Maffei

Brian J. Wendling

Albert E. Rosenthaler

Renee L. Wilm

Individual
Performance
Bonus

Corporate
Performance
Bonus Related to
Financial Measures

Corporate
Performance Bonus
Related to Corporate-
Level Achievements

$2,167,500

$1,329,400

99,761

$ 182,523

$ 196,636

47,067

86,113

86,145

$491,300

$ 17,394

$ 31,825

$ 31,836

Total Bonus

$3,988,200

$ 164,222

$ 300,460

$ 314,617

Our compensation committee then noted that, when combined with the total 2021 performance-based bonus amounts
paid by Liberty Media and the other Service Companies to the overlapping named executive officers, Messrs. Maffei,
Wendling and Rosenthaler and Ms. Wilm received $26,730,752, $966,011, $1,767,413 and $1,850,688, respectively. For
more information regarding these bonus awards, please see the “Grants of Plan-Based Awards” table below.

QVC Bonus Awards.

Pursuant to the terms of the Rawlinson Employment Agreement, for 2021, Mr. Rawlinson received an annual bonus of
$654,966, which is his target annual bonus (125% of his base salary), prorated based upon the number of days from his
start date through the end of 2021.

Mr. George’s 2021 performance-based bonus was structured to align with the 2021 performance-based bonus program
established at QVC for QVC senior global officers. Pursuant to the program, Mr. George would be paid a cash bonus based
upon 2021 Adjusted OIBDA (defined above) performance on a constant currency basis. Pursuant to the terms of the
George Employment Agreement Extension, Mr. George’s target bonus amount was 100% of his base salary, his maximum
bonus amount was 240% of his base salary and he remained eligible to receive the 2021 performance-based bonus if
his service terminated on December 31, 2021 at the end of the term of such arrangement.

For any bonus to be paid, 2021 Adjusted OIBDA would need to equal or exceed $2,079 million. If 2021 Adjusted OIBDA
equaled or exceeded $2,079 million, then Mr. George would be eligible to receive a maximum bonus of 240% of his base
salary, subject to reduction in the discretion of our compensation committee based on 2021 Adjusted OIBDA performance
and individual performance, among other things. 2021 Adjusted OIBDA was $2,126 million, which exceeded the threshold
for receiving a bonus payment. Upon review of the 2021 Adjusted OIBDA performance, our compensation committee
awarded Mr. George a bonus of $527,597, or 35% of his base salary.

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EXECU TIVE COMP ENSAT IO N

EQUITY INCENTIVE COMPENSATION

The 2020 incentive plan provides, and the Qurate Retail, Inc. 2016 Omnibus Incentive Plan, as amended (the 2016
incentive plan), before its replacement by the 2020 incentive plan, and the Liberty Interactive Corporation 2012 Incentive
Plan and the Liberty Interactive Corporation 2010 Incentive Plan (As Amended and Restated Effective November 7,
2011) (the 2010 incentive plan,) (each as amended), before their expiration, provided, for the grant of a variety of incentive
awards, including stock options, restricted shares, RSUs, SARs and performance awards. Our compensation committee
has a preference for grants of stock-based incentive awards (RSUs, restricted stock and options) as compared with cash
incentive awards based on the belief that they better promote retention of key employees through the continuing, long-term
nature of an equity investment. It is the policy of our compensation committee that stock options be awarded with an
exercise price equal to fair market value on the date of grant, typically measured by reference to the closing price on the
grant date. In the past, our company was not allocated any portion of the costs of the named executive officers’ (other than
Mr. George) equity awards. Liberty Media’s compensation committee reviewed this practice and determined that it would
be appropriate to request each of our company and the other Service Companies to grant a portion of the equity awards
granted to our named executive officers other than Mr. George and Mr. Rawlinson, who receive equity awards from our
company only. Liberty Media’s compensation committee determined to allocate to each of our company, Liberty Broadband
and Liberty TripAdvisor a proportionate share of the aggregate equity grant value given to each named executive officer,
other than Mr. George and Mr. Rawlinson, based 50% on relative market capitalization and 50% on relative time spent by
Liberty Media’s employees working for such issuer. With respect to awards made to Mr. Maffei, the 2019 Maffei
Employment Agreement provides that Mr. Maffei’s aggregate annual equity award value will be granted across Liberty
Media and the Service Companies by Liberty Media’s compensation committee, our compensation committee and the
compensation committees of Liberty TripAdvisor and Liberty Broadband based on two factors, each weighted 50%: (i) the
relative market capitalization of each series of stock of each company and (ii) the average of (a) the percentage allocation
of time for all Liberty Media employees across all companies and (b) Mr. Maffei’s percentage allocation of time across all
companies, unless a different allocation method is agreed.

Maffei Equity Awards

Maffei Annual Equity Awards. The 2019 Maffei Employment Agreement provides Mr. Maffei with the opportunity to earn
annual equity awards during the employment term. See “—Executive Compensation Arrangements—Gregory B. Maffei—
Annual Awards” for additional information about the annual awards provided under the 2019 Maffei Employment Agreement.

When structuring the 2019 Maffei Employment Agreement, to further align Mr. Maffei’s interests with those of the other
stockholders, the compensation committee structured his annual equity award grants as either option awards or performance-
based restricted stock units with meaningful payout metrics determined annually. This structure was designed to provide
for alignment of interests with the company’s stockholders and flexibility to the compensation committee to incent
achievement of strategic objectives that may change or evolve over the term of the agreement.

The 2019 Maffei Employment Agreement provided that Mr. Maffei was entitled to receive from our company, Liberty Media
and the other Service Companies in 2021 a combined target equity award value of $17.5 million comprised of time-
vested stock options, performance-based restricted stock units or a combination of award types, at Mr. Maffei’s election.
In 2021, our compensation committee granted performance-based RSUs to Mr. Maffei in satisfaction of our obligations
under the 2019 Maffei Employment Agreement for 17% of Mr. Maffei’s aggregate annual equity award for 2021, or
$2,975,000. Our compensation committee believed that Mr. Maffei’s RSU grants should be subject to performance metrics
that incentivize and reward Mr. Maffei for successful completion of our company’s strategic initiatives.

As a result, our compensation committee granted to Mr. Maffei 229,022 performance-based RSUs with respect to QRTEA
shares (the 2021 Maffei RSUs). Our compensation committee granted to Mr. Maffei the 2021 Maffei RSUs on March 10,
2021, which vest only upon attainment of the performance objectives described below.

Our compensation committee reviewed the financial performance of our company along with the personal performance of
Mr. Maffei. Based on the compensation committee’s assessment of his individual performance against the goals
established in connection with the performance cash bonus program and general observation of his leadership and
executive performance, our compensation committee approved vesting of all of the 2021 Maffei RSUs previously granted
to Mr. Maffei.

For more information regarding Mr. Maffei’s equity awards as provided in the 2019 Maffei Employment Agreement, see
the “Grants of Plan-Based Awards” table below and “Executive Compensation—Compensation Discussion and Analysis—

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EX ECUTIV E COM P ENS AT IO N

Elements of 2021 Executive Compensation—Equity Incentive Compensation—Maffei Annual Equity Awards” in Liberty
Media’s Definitive Proxy Statement on Schedule 14A with respect to its 2021 annual meeting of stockholders; “Executive
Compensation—Compensation Discussion and Analysis—Elements of 2021 Executive Compensation—Equity Incentive
Compensation—Maffei Annual Equity Awards” in Liberty TripAdvisor’s Definitive Proxy Statement on Schedule 14A with
respect to its 2021 annual meeting of stockholders; and “Executive Compensation—Compensation Discussion and
Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—Maffei Annual Equity Awards” in
Liberty Broadband’s Definitive Proxy Statement on Schedule 14A with respect to its 2021 annual meeting of stockholders.

Maffei Restricted Share Award. In June 2021, pursuant to the Letter Agreement, Mr. Maffei received a grant of 1,101,321
QRTEB restricted shares, which vest in two equal tranches on December 10, 2024 and the fifth anniversary of the grant
date (the 2021 Maffei Restricted Share Award). See “Certain Relationships and Related Party Transactions—Waiver
Letter and Amendment of 2019 Maffei Employment Agreement,” and the “Grants of Plan-Based Awards” and the
“Outstanding Equity Awards at Fiscal Year-End” tables below for more information on the 2021 Maffei Restricted Share
Award.

Other 2021 Awards

Multiyear Stock Options and RSUs. Consistent with its previous practices, our compensation committee has made
larger stock option grants (equaling approximately three to five years’ value of the named executive officer’s annual grants)
that vest between two and five years after grant, rather than making annual grants over the same period. These multiyear
grants provide for back-end weighted vesting and generally expire seven to ten years after grant to encourage executives to
remain with the company over the long-term and to better align their interests with those of the stockholders.

In line with this philosophy, in connection with entering into, and pursuant to the terms of, the Rawlinson Employment
Agreement, Mr. Rawlinson was entitled to two upfront equity awards. In August 2021, Mr. Rawlinson received a grant of
options to purchase 1,185,053 QRTEA shares with an exercise price of $10.50, which vest 50% on each of December 31,
2023 and December 31, 2024 (the 2021 Rawlinson Term Options). Such options expire on the seventh anniversary of
the grant date. Also in August 2021, Mr. Rawlinson received a grant of 508,865 QRTEA RSUs of which 13% vested on
December 10, 2021 and 29% will vest on each of December 10, 2022, December 10, 2023 and December 10, 2024 (the
2021 Rawlinson Term RSUs). See the “Grants of Plan-Based Awards” and the “Outstanding Equity Awards at Fiscal
Year-End” tables below for more information about the 2021 Rawlinson Term Options and 2021 Rawlinson Term RSUs.

Messrs. Wendling and Rosenthaler and Ms. Wilm each received a multiyear stock option award in December 2020 (the 2020
NEO Multiyear Options), which equaled, for Messrs. Wendling and Rosenthaler, the value of the annual grants that
were expected to be granted to each for the period from January 1, 2021 through December 31, 2023, and for Ms. Wilm, a
top up in value over grants already made for the same period to reflect the increased responsibilities associated with her
new role beginning in 2021 of Chief Administrative Officer. See the “Outstanding Equity Awards at Fiscal Year-End” table
below for more information about the 2020 NEO Multiyear Options.

Annual Performance Awards

Chief RSU Awards. Consistent with our practice since December 2014 of granting a combination of multiyear stock
options and annual performance awards to senior officers, our compensation committee granted annual performance RSUs
to Messrs. Wendling and Rosenthaler and Ms. Wilm in March 2021. Our compensation committee granted to Messrs.
Wendling and Rosenthaler and Ms. Wilm 9,844, 17,783 and 17,783 QRTEA performance-based RSUs, respectively, on
March 10, 2021 (collectively, the 2021 Chief RSUs). The 2021 Chief RSUs would vest subject to the satisfaction of the
performance objectives described below.

Our compensation committee adopted an annual, performance-based program for payment of the 2021 Chief RSUs and
reviewed each named executive officer’s performance against that performance program to determine what portion of the
award would be paid. Our compensation committee reviewed the 2021 personal performance of Messrs. Wendling and
Rosenthaler and Ms. Wilm and considered the recommendations from Mr. Maffei. Mr. Maffei recommended that our
committee vest 100% of the 2021 Chief RSUs based on his assessment of their individual performance against the goals
established in connection with the performance cash bonus program and his general observation of their leadership and
executive performance. Accordingly, our compensation committee approved vesting in full of the 2021 Chief RSUs previously
granted to Messrs. Wendling and Rosenthaler and Ms. Wilm.

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EXECU TIVE COMP ENSAT IO N

QVC CEO RSUs.

Pursuant to the Rawlinson Employment Agreement, Mr. Rawlinson is eligible for an annual $4 million grant of
performance-based RSUs with respect to QRTEA stock. Accordingly, our compensation committee granted to Mr. Rawlinson
142,699 QRTEA performance-based RSUs (the 2021 Rawlinson RSUs) on August 18, 2021, representing a pro-rata
portion of his annual grant value based on his August 1, 2021 start date. For the 2021 calendar year, the amount earned
under the performance-based program is based 100% on subjective performance criteria.

Our compensation committee reviewed the 2021 personal performance of Mr. Rawlinson and considered the
recommendation from Mr. Maffei. Mr. Maffei recommended that our committee vest 100% of the 2021 Rawlinson RSUs
based on his assessment of individual performance and his general observation of leadership and executive performance.
Accordingly, our compensation committee approved vesting in full of the 2021 Rawlinson RSUs.

Pursuant to the George Employment Agreement Extension, for 2021, Mr. George was eligible for a $5.5 million target
grant of performance-based RSUs with respect to QRTEA stock, and a maximum payout equal to 1.5 times his target RSUs,
or $8.25 million was established. Our compensation committee granted to Mr. George 423,403 QRTEA performance-
based RSUs (the 2021 George RSUs) on March 10, 2021, which represented his target RSUs. The amount earned under
the performance-based program was based 60% on subjective performance criteria and 40% on objective performance
criteria. The 2021 George RSUs would vest only upon attainment of the performance objectives described below. Pursuant
to the terms of the George Employment Agreement Extension, Mr. George would remain eligible to receive the 2021
George RSUs if his service terminated on December 31, 2021 at the end of the term of such arrangement.

Our compensation committee adopted an annual, performance-based program for payment of the 2021 George RSUs.
Regarding the objective portion of the performance-based RSUs, none of the 2021 George RSUs would vest unless 2021
Adjusted OIBDA equaled or exceeded $2,079 million. For purposes of the 2021 George RSUs, 2021 Adjusted OIBDA
was defined in the same manner as the cash performance bonus program for Mr. George. See “—Elements of 2021
Executive Compensation—2021 Performance-based Bonuses—QVC Bonus Awards” above.

After review of our company’s 2021 Adjusted OIBDA results, our compensation committee determined and certified that
67% of the target amount of 2021 George RSUs related to objective performance criteria could be paid to Mr. George. In
addition, our compensation committee reviewed the personal performance self-evaluation of Mr. George and adopted the
recommendation of Mr. Maffei as to the payout of the subjective portion of the 2021 George RSUs. Mr. Maffei
recommended 60% payout of the target amount of 2021 George RSUs related to subjective performance criteria. Based
on the combined subjective and objective performance criteria, our compensation committee determined to vest 63% of the
target number of 2021 George RSUs, or 265,528 RSUs.

The George Employment Agreement Extension also provided that Mr. George was eligible for a $5.5 million grant of
time-based RSUs with respect to QRTEA stock. Our compensation committee granted Mr. George 423,403 QRTEA
time-based RSUs (the 2021 George Time-Based RSUs), on March 10, 2021, which vested on December 10, 2021.

Cash Dividend Adjustments. In November 2021, we issued a special dividend (the November Special Dividend) on
each outstanding share of our common stock consisting of $1.25 in cash per common share (the cash dividend). Since
stock options did not participate in the November Special Dividend, the number of shares of our common stock subject to,
and the exercise price of, outstanding options were adjusted to preserve each option’s intrinsic value and the ratio of the
exercise price to market price. Outstanding restricted stock units participated in the November Special Dividend and became
eligible to receive the cash dividend, subject to the same terms and conditions as the corresponding original restricted
stock unit (the cash dividend equivalent rights). As a result, the outstanding options of each of Messrs. Maffei, George,
Rawlinson, Wendling and Rosenthaler and Ms. Wilm were adjusted as described above in November 2021. For more
information, see the “Outstanding Equity Awards at Fiscal Year End” table below.

PERQUISITES AND OTHER PERSONAL BENEFITS

The perquisites and other personal benefits available to our executives (that are not otherwise available to all of our
salaried employees) consist of:

• limited personal use of Liberty Media’s corporate aircraft (pursuant to aircraft time sharing agreements between

our company and Liberty Media);

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EX ECUTIV E COM P ENS AT IO N

• in the case of Mr. Maffei and Mr. Rawlinson, payment of legal expenses pertaining to their respective employment

arrangements;

• occasional, personal use of Liberty Media’s apartment in New York City (pursuant to a sharing arrangement

between our company and Liberty Media), which is primarily used for business purposes, and occasional, personal
use of a company car and driver; and

• in the case of Mr. George, a tax gross-up relating to certain out of state income taxes to which Mr. George was

subject in connection with the performance of his duties outside of QVC’s headquarters.

Taxable income may be incurred by our executives in connection with their receipt of perquisites and personal benefits.
Other than with respect to Mr. George, as described below, we have not provided gross-up payments to our executives in
connection with any such taxable income incurred during the past three years.

Aircraft Usage. On occasion, and with the appropriate approvals, executives may have family members and other guests
accompany them on Liberty Media’s corporate aircraft when traveling on business. Under the terms of the employment
arrangements with our Chairman, our Chairman and his guests may use the corporate aircraft we share with Liberty Media
for non-business purposes subject to specified limitations.

Pursuant to a February 5, 2013 letter agreement between Liberty Media and Mr. Maffei, Mr. Maffei is entitled to 120 hours
per year of personal flight time through the first to occur of (i) the termination of his employment, subject to any continued
right to use the corporate aircraft as described below or pursuant to the terms of his employment arrangement in effect at the
time of the termination or (ii) the cessation of ownership or lease of corporate aircraft. During 2021, pursuant to
November 11, 2015 and December 13, 2019 letter agreements between Liberty Media and Mr. Maffei, Mr. Maffei was
entitled to 50 additional hours per year of personal flight time if he reimbursed Liberty Media for such usage through the
first to occur of (i) the termination of his employment or (ii) the cessation of ownership or lease of corporate aircraft. If
Mr. Maffei’s employment is terminated due to disability, for good reason or without cause, Mr. Maffei would be entitled to
continued use of the corporate aircraft for 12 months after termination of his employment. Mr. Maffei incurs taxable
income, calculated in accordance with the Standard Industry Fare Level (SIFL) rates, for all personal use of the corporate
aircraft under the February 5, 2013 letter agreement. Mr. Maffei incurs taxable income at the SIFL rates minus amounts
paid under time sharing agreements with Liberty Media for travel. Flights where there are no passengers on company-
owned aircraft are not charged against the 120 hours of personal flight time per year allotted to Mr. Maffei if the flight
department determines that the use of a NetJets, Inc. supplied aircraft for a proposed personal flight would be
disadvantageous to our company due to (i) use of budgeted hours under the then current Liberty Media fractional ownership
contract with NetJets, Inc. or (ii) higher flight cost as compared to the cost of using company-owned aircraft.

For disclosure purposes, we determine the aggregate incremental cost to the company of the executives’ personal flights
by using a method that takes into account all operating costs related to such flights, including:

• landing and parking expenses;

• crew travel expenses;

• supplies and catering;

• aircraft fuel and oil expenses per hour of flight;

• aircraft maintenance and upkeep;

• any customs, foreign permit and similar fees; and

• passenger ground transportation.

Because the company’s aircraft is used primarily for business travel, this methodology excludes fixed costs that do not
change based on usage, such as salaries of pilots and crew, and purchase or lease costs of aircraft.

Pursuant to our aircraft time sharing agreements with Liberty Media, we pay Liberty Media for any costs, calculated in
accordance with Part 91 of the Federal Aviation Regulations, associated with Mr. Maffei using Liberty Media’s corporate
aircraft for our company’s business matters along with the approved personal use of Liberty Media’s corporate aircraft that
are allocable to our company. Pursuant to aircraft time sharing agreements between Liberty Media and Mr. Maffei,
Mr. Maffei was responsible for reimbursing Liberty Media for costs associated with his 50 additional hours per year of
personal flight time and such costs include the expenses listed above, insurance obtained for the specific flight and an
additional charge equal to 100% of the aircraft fuel and oil expenses for the specific flight.

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EXECU TIVE COMP ENSAT IO N

For purposes of determining an executive’s taxable income, personal use of Liberty Media’s aircraft is valued using a
method based on SIFL rates, as published by the Treasury Department. The amount determined using the SIFL rates is
typically lower than the amount determined using the incremental cost method. Under the American Jobs Creation Act of
2004, the amount we may deduct for U.S. federal income tax purposes for a purely personal flight is limited to the amount
included in the taxable income of the executives who took the flight. Also, the deductibility of any non-business use will
be limited by Section 162(m) of the Code to the extent that the named executive officer’s compensation that is subject to
that limitation exceeds $1 million. See “— Deductibility of Executive Compensation” below.

Gross-Up. In 2021, Mr. George received a tax gross-up from QVC relating to certain out of state income taxes to which
he was subject in connection with the performance of his duties outside of QVC’s headquarters.

CHANGES FOR 2022

David Rawlinson Annual Bonus

Although, for the 2021 calendar year, Mr. Rawlinson received a guaranteed pro-rated annual bonus based on his target
bonus amount, given his start date, pursuant to the Rawlinson Employment Agreement, Mr. Rawlinson will be eligible to earn
a cash bonus based on criteria approved each year by our compensation committee, which will include Adjusted OIBDA
results or other metrics comparable to those used for other senior-level executives of QVC. His target bonus amount is125%
of his base salary and his maximum bonus amount is 200% of his base salary.

DEDUCTIBILITY OF EXECUTIVE COMPENSATION

In developing the 2021 compensation packages for the named executive officers, the deductibility of executive
compensation under Section 162(m) of the Code is considered. That provision prohibits the deduction of compensation of
more than $1 million paid to certain executives, subject to certain exceptions. Following the enactment of the Tax Cuts
and Jobs Act of 2017, beginning with the 2018 calendar year, the executives potentially affected by the limitations of
Section 162(m) of the Code have been expanded and there is no longer any exception for qualified performance-based
compensation. Although some performance-based awards will not result in a compensation deduction after 2017, we believe
the transition rules in effect for binding contracts in effect on November 2, 2017 should continue to allow certain of these
awards to maintain their exemption from the $1 million annual deduction limitation for so long as such awards are not
materially modified. However, portions of the compensation we pay to the named executive officers may not be deductible
due to the application of Section 162(m) of the Code. Our compensation committee believes that the lost deduction on
compensation payable in excess of the $1 million limitation for the named executive officers is not material relative to
the benefit of being able to attract and retain talented management.

RECOUPMENT PROVISIONS

In those instances where we grant cash or equity-based incentive compensation, we expect to include in the related
agreement with the executive a right, in favor of our company, to require the executive to repay or return to the company
any cash, stock or other incentive compensation (including proceeds from the disposition of shares received upon exercise
of options or stock appreciation rights). That right will arise if (1) a material restatement of any of our financial statements
is required and (2) in the reasonable judgment of our compensation committee, (A) such restatement is due to material
noncompliance with any financial reporting requirement under applicable securities laws and (B) such noncompliance is a
result of misconduct on the part of the executive. In determining the amount of such repayment or return, our
compensation committee may take into account, among other factors it deems relevant, the extent to which the market
value of the applicable series of our common stock was affected by the errors giving rise to the restatement. The cash, stock
or other compensation that we may require the executive to repay or return must have been received by the executive
during the 12-month period beginning on the date of the first public issuance or the filing with the SEC, whichever occurs
earlier, of the financial statement requiring restatement. The compensation required to be repaid or returned will include
(1) cash or company stock received by the executive (A) upon the exercise during that 12-month period of any stock
appreciation right held by the executive or (B) upon the payment during that 12-month period of any incentive compensation,
the value of which is determined by reference to the value of company stock, and (2) any proceeds received by the
executive from the disposition during that 12-month period of company stock received by the executive upon the exercise,
vesting or payment during that 12-month period of any award of equity-based incentive compensation. Beginning in
December 2020, we also began including in new forms of equity-based award agreements a right, in favor of our company,

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EX ECUTIV E COM P ENS AT IO N

to require the executive to repay or return to the company, upon a reasonable determination by our compensation committee
that the executive breached the confidentiality obligations included in the agreement, all or any portion of the outstanding
award, any shares received under awards during the 12-month period prior to any such breach or any time after such breach
and any proceeds from the disposition of shares received under awards during the 12-month period prior to any such
breach or any time after such breach.

STOCK OWNERSHIP GUIDELINES AND HEDGING POLICIES

Our board of directors has adopted stock ownership guidelines that generally require our executive officers to own shares
of our company’s stock equal to at least three times the value of the annual performance RSUs granted by our company
to such executive officer. Our executive officers generally have five years from the date of their appointment to an executive
officer role to comply with these guidelines. For information regarding our policies with respect to the ability of our
officers and directors to hedge or offset any decrease in the market value of our equity securities, see “Security Ownership
of Certain Beneficial Owners and Management—Hedging Disclosure.”

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

No member of our compensation committee during 2021 is or has been an officer or employee of our company, or has
engaged in any related party transaction during 2021 in which our company was a participant.

COMPENSATION COMMITTEE REPORT

The compensation committee has reviewed and discussed with our management the “Compensation Discussion and
Analysis” included under “Executive Compensation” above. Based on such review and discussions, the compensation
committee recommended to our board of directors that the “Compensation Discussion and Analysis” be included in this
proxy statement.

Submitted by the Members of the Compensation Committee

Larry E. Romrell
Mark C. Vadon
Andrea L. Wong

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SUMMARY COMPENSATION TABLE

Name and
Principal Position
(as of 12/31/21)

Gregory B. Maffei
Chairman of the Board

David Rawlinson II(13)
President and Chief Executive Officer

Michael A. George(14)
Former President and Chief Executive Officer

Brian J. Wendling(16)
Chief Accounting Officer and Principal Financial Officer

Albert E. Rosenthaler
Chief Corporate Development Officer

Renee L. Wilm(17)
Chief Legal Officer and Chief Administrative Officer

Year

Salary
($)(1)

Bonus
($)(2)

Stock
Awards
($)(3)

Option
Awards
($)(4)

Non-Equity
Incentive Plan
Compensation
($)(5)

All Other
Compensation
($)(6)(7)(8)

Total
($)

2021

510,000

— 17,987,415

— 3,988,200

517,851(9)(10)(12)

23,003,466

2020

436,972

— 2,594,554 5,815,187

5,612,319

3,078,902(9)(10)(11)(12) 17,537,934

2019 1,167,798

950,000

3,807,616 7,491,251

1,005,096

284,316(9)(10)

14,706,077

527,597

1,986,297(12)(15)

— 2,500,000

2021

520,833 2,054,966

6,841,422 5,948,895

2020

2019

n/a

2021 1,500,000

— 10,923,797

n/a

—

2020 1,250,000

2019 1,250,000

2021

2020

2019

66,206

106,662

85,111

— 3,218,805

— 3,413,655

— 126,988

—

74,286

323,562

— 142,207

—

2021

209,226

— 229,401

2020

2019

2021

2020

2019

180,057

204,399

220,238

142,800

26,923

— 152,940

584,499

— 243,297

— 229,401

—

— 122,899

157,395

—

67,336 1,319,153

—

n/a

—

164,222

143,931

61,408

300,460

297,461

199,289

314,617

210,862

21,418

859,792(11)(12)

16,225,908

n/a

3,822,054(12)(15)
34,316(15)

16,685(12)

87,975(12)

7,594

31,234(12)

165,133(12)

7,815

30,030(12)
145,179(12)(18)
5,981(18)

n/a

14,937,691

10,790,859

4,697,971

374,101

736,416

296,320

770,321

1,380,090

654,800

794,286

779,135

1,440,811

(1) Represents, for Mr. Maffei, his 2019 base salary that we paid directly to him pursuant to his prior employment agreement and, for
2020 and 2021, only that portion of his base salary that, beginning January 1, 2020, was allocated to our company under the
amended services agreement in connection with the 2019 Maffei Employment Agreement. In 2020, our company’s allocable
portion of Mr. Maffei’s base salary was $570,000, but due to the financial impact of the coronavirus pandemic, for the period from
April 4, 2020 through December 31, 2020, Mr. Maffei offered to waive the right to receive his base salary except for amounts sufficient
to cover health insurance, flexible spending contributions and certain taxes. Mr. Maffei received an aggregate of $155,800 in cash
salary during 2020. In consideration for the portion of Mr. Maffei’s 2020 base salary that he offered to waive and restructure (which
totaled $414,200), we granted to Mr. Maffei RSUs, which had a grant date fair value of $281,172 (the 2020 Maffei Restructuring
RSUs), and this amount is reflected in the Salary column of this Summary Compensation Table. For Messrs. Wendling, Rosenthaler
and Ms. Wilm, the amounts set forth in the table reflect compensation paid by Liberty Media but allocable to our company under
the amended services agreement. For a description of the allocation of Messrs. Maffei’s, Wendling’s, Rosenthaler’s and Ms. Wilm’s
base salaries among Liberty Media, our company and the other Service Companies, see “—Compensation Discussion and
Analysis—Services Agreement” above and “—Executive Compensation Arrangements—Gregory B. Maffei—2019 Maffei
Employment Agreement below. For Messrs. Rawlinson and George, the amounts set forth in the table represent the base salaries
paid directly by QVC with respect to the entire year.

(2) For Mr. Maffei, represents only that portion of Mr. Maffei’s cash commitment bonus allocated to our company under the amended
services agreement in connection with the 2019 Maffei Employment Agreement. For a description of the allocation of Mr. Maffei’s
compensation among Liberty Media, our company and the other Service Companies pursuant to the 2019 Maffei Employment
Agreement and the amended services agreement, see “—Compensation Discussion and Analysis—Services Agreement.” For
Mr. Rawlinson, represents Mr. Rawlinson’s one-time cash signing bonus and his 2021 annual cash bonus, which was guaranteed
and prorated, pursuant to the Rawlinson Employment Agreement. For a description of the terms of Mr. Rawlinson’s signing bonus
and 2021 annual cash bonus, see “—Executive Compensation Arrangements—David Rawlinson II—Rawlinson Employment
Agreement” and “—Executive Compensation Arrangements—David Rawlinson II—Rawlinson Annual Cash Performance Bonus”
below.

(3) Reflects, as applicable, the grant date fair value of the RSUs (other than the 2020 Maffei Restructuring RSUs, the grant date fair

value of which is reflected in the Salary column of this table in accordance with applicable SEC rules) and restricted shares granted
to our named executive officers during 2021, 2020 and 2019. The table reflects the grant date fair value of the 2021 Maffei RSUs,
the 2021 Maffei Restricted Share Award, the 2021 Rawlinson Term RSUs, the 2021 Rawlinson RSUs, the 2021 George RSUs, the
2021 George Time-Based RSUs, the 2021 Chief RSUs, performance-based RSUs granted to Messrs. Maffei, George, Wendling
and Rosenthaler and Ms. Wilm in 2020 and 2019 and time-based RSUs granted to Mr. Wendling in August 2019. A maximum payout
equal to 1.5 times the target number of 2021 Maffei RSUs and the RSUs granted to Mr. Maffei in 2020 and 2019, or $4.463 million,
$4.845 million and $6.3 million, respectively, of grant value was established. A maximum payout equal to 1.5 times the target

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EX ECUTIV E COM P ENS AT IO N

number of 2021 George RSUs and the RSUs granted to Mr. George in 2020 and 2019, or $8.25 million, $6.188 million and
$6.188 million, respectively, of grant value was established. The grant date fair value of these awards has been computed in
accordance with FASB ASC Topic 718, but (pursuant to SEC regulations) without reduction for estimated forfeitures. For a description
of the assumptions applied in these calculations, see Note 11 to our consolidated financial statements for the year ended
December 31, 2021 (which are included in the 2021 Form 10-K).

(4) The grant date fair value of Mr. Maffei’s 2020 and 2019 stock option awards, including the 2020 Maffei Term Options (as defined

below) and the 2019 Maffei Term Options (as defined below), the 2021 Rawlinson Term Options, the 2020 NEO Multiyear Options
and Ms. Wilm’s 2019 multi-year stock option award have been computed in accordance with FASB ASC Topic 718, but (pursuant to
SEC regulations) without reduction for estimated forfeitures. For a description of the assumptions applied in these calculations,
see Note 11 to our consolidated financial statements for the year ended December 31, 2021 (which are included in the 2021
Form 10-K).

(5) Represents each named executive officer’s annual performance-based bonus.

(6) The Liberty Media 401(k) Savings Plan provides employees with an opportunity to save for retirement. The Liberty Media 401(k)

Savings Plan participants may contribute up to 75% of their eligible compensation on a pre-tax basis to the plan and an additional
10% of their eligible compensation on an after-tax basis (subject to specified maximums and IRS limits), and Liberty Media contributed
a matching contribution that vests based upon the participants’ years of service and is based on the participants’ own contributions
up to the maximum matching contribution set forth in the plan. Our company reimburses Liberty Media under the services
agreement for our allocable portion of the matching contribution for all of the named executive officers other than Mr. Rawlinson
and Mr. George. Participant contributions to the Liberty Media 401(k) Savings Plan are fully vested upon contribution.

Generally, participants acquire a vested right in our matching contributions as follows:

Years of Service

Less than 1

1 – 2

2 – 3

3 or more

Vesting
Percentage

33%

66%

100%

Included in this column are the matching contributions made by Liberty Media on behalf of each of the named executive officers to
the Liberty Media 401(k) Savings Plan and allocated to our company under the services agreement, with the exception of
Mr. George, whose matching contributions were made by QVC under its 401(k) savings plan. Mr. Rawlinson did not participate in
QVC’s 401(k) savings plan in 2021 and therefore did not receive a matching contribution.

Name

Gregory B. Maffei

Michael A. George

Brian J. Wendling

Albert E. Rosenthaler

Renee L. Wilm

2021

4,930

13,050

3,190

5,510

5,800

Amounts ($)

2020

5,415

12,825

5,985

5,415

3,990

2019

4,760

12,600

5,320

6,160

—

With respect to these matching contributions, all of our named executive officers are fully vested other than Ms. Wilm who is 66%
vested.

(7)

Included in this column are the following life insurance premiums paid by Liberty Media (with the exception of Mr. Rawlinson and
Mr. George, whose life insurance premiums are paid by QVC), on behalf of each of the named executive officers and allocated to our
company under the services agreement.

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Name

Gregory B. Maffei

David Rawlinson II

Michael A. George

Brian J. Wendling

Albert E. Rosenthaler

Renee L. Wilm

Amounts ($)

2020

385

n/a

2,322

359

1,430

239

2019

834

n/a

1,935

281

1,655

2021

1,279

338

3,564

188

1,430

342

(8) Liberty Media makes available to our personnel, including our named executive officers, tickets to various sporting events with no

aggregate incremental cost attributable to any single person.

Beginning in 2020, the company’s named executive officers were afforded the opportunity to use a portion of Liberty Media’s
fractional ownership contract with NetJets for personal use, provided that each such named executive officer or director was
responsible for reimbursing Liberty Media for costs associated therewith. This opportunity expired on February 28, 2021. However,
from time to time, with the approval of the Chairman, our named executive officers are permitted to use a portion of our NetJets
contract for personal use, provided they reimburse Liberty Media for costs associated therewith.

(9)

Includes the following:

Compensation related to personal use of corporate aircraft(a)

(a) Calculated based on aggregate incremental cost of such usage to our company.

Amounts ($)

2021

2020

2019

187,483

126,930

275,900

(10) Liberty Media owns an apartment in New York City which is primarily used for business purposes. Mr. Maffei occasionally used this
apartment for personal reasons during 2021, 2020 and 2019. From time to time, we pay the cost of miscellaneous shipping and
catering expenses for Mr. Maffei.

(11) Includes the payment of $124,035 in 2020 for legal expenses pertaining to Mr. Maffei’s employment agreement entered into in
December 2019 and $45,000 in 2021 for legal expenses pertaining to Mr. Rawlinson’s employment agreement entered into in
July 2021.

(12) Includes the value of the cash dividend equivalent rights, preferred stock RSUs and cash in lieu of fractional preferred stock RSUs

received by holders of RSUs in connection with the special dividend we issued in September 2020, the value of the special cash
dividend equivalent rights received by holders of RSUs in December 2020, and the value of the special cash dividend equivalent
rights received by holders of RSUs in November 2021 in connection with the November Special Dividend, in each case, to the extent
such amounts were not factored into the grant date fair value of the underlying awards computed in accordance with FASB ASC
Topic 718, but (pursuant to SEC regulations) without reduction for estimated forfeitures. In the table below related to the November
Special Dividend, the special cash dividend equivalent rights are referred to as Cash Value. Such amounts include:

Name

Gregory B. Maffei

David Rawlinson II

Michael A. George

Brian J. Wendling

Albert E. Rosenthaler

Renee L. Wilm

Cash Value ($)

321,337

814,454

1,916,399(a)

13,307

24,294

23,888

(a)

In connection with the compensation committee certifying the payout of Mr. George’s 2021 George RSUs, $195,823 of
Mr. George’s November Special Dividend was forfeited.

(13) Mr. Rawlinson assumed the role of President and Chief Executive Officer-Elect of our company effective August 1, 2021 and the

role of President and Chief Executive Officer effective October 1, 2021.

(14) Mr. George stepped down as President of our company effective August 1, 2021 and as Chief Executive Officer effective October 1,

2021.

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(15) Includes tax gross-ups in the following amounts relating to certain out of state income taxes to which Mr. George was subject as a

result of the performance of his duties outside of QVC’s headquarters:

2021

53,284

Amounts ($)

2020

7,756

2019

19,781

(16) Mr. Wendling was promoted to the Principal Financial Officer role at our company in July 2019, and the Chief Accounting Officer

role at our company in January 2020.

(17) Ms. Wilm assumed the role of Chief Legal Officer of our company effective September 23, 2019, and the role of Chief Administrative

Officer in January 2021.

(18) Includes the following relocation expenses paid on behalf of Ms. Wilm:

2021

n/a

Amounts ($)

2020

13,754

2019

5,935

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EXECUTIVE COMPENSATION ARRANGEMENTS

GREGORY B. MAFFEI

2019 Maffei Employment Agreement

Liberty Media entered into the 2019 Maffei Employment Agreement with Mr. Maffei, effective December 13, 2019. The
arrangement provides for a five year employment term beginning January 1, 2020 and ending December 31, 2024, with
an annual base salary of $3 million (with no contracted increase) and a one-time cash commitment bonus of $5 million paid
in 2019, an annual target cash performance bonus equal to $17 million (with payment subject to the achievement of one
or more performance metrics as determined by the applicable company’s compensation committee with respect to its
allocable portion), upfront equity awards (with an aggregate grant date fair value of $90 million to be granted in two
equal tranches) and annual equity awards with an aggregate target grant date fair value of $17.5 million.

Liberty Media paid Mr. Maffei his $5 million cash commitment bonus in 2019, and we reimbursed Liberty Media for our
allocable portion (which was 19%) in 2019.

Maffei Term Equity Awards

On December 13, 2019, in connection with the execution of the 2019 Maffei Employment Agreement, Mr. Maffei became
entitled to receive term equity awards with an aggregate grant date fair value of $90 million (the Upfront Awards) to be
granted in two equal tranches. The first tranche consisted of time-vested stock options from each of our company,
Liberty Media, Liberty Broadband and GCI Liberty and time-vested restricted stock units from Liberty TripAdvisor that
vest, in each case, on December 31, 2023 (except Liberty TripAdvisor’s award of time-vested restricted stock units, which
vests on December 15, 2023), subject to Mr. Maffei’s continued employment, except as described below. Qurate Retail’s
portion of the Upfront Awards granted in December 2019 consisted of stock options to purchase 2,133,697 QRTEA shares,
with a term of seven years (the 2019 Maffei Term Options).

The second tranche of the Upfront Awards was granted in December 2020 and consisted of time-vested stock options
from each of our company, Liberty Media, Liberty Broadband and GCI Liberty and time-vested restricted stock units from
Liberty TripAdvisor. The Upfront Awards granted in December 2020 will vest, in each case, on December 31, 2024 (except
Liberty TripAdvisor’s award of time-vested restricted stock units, which vests on December 7, 2024), subject to Mr. Maffei’s
continued employment, except as described below. Qurate Retail’s portion of the Upfront Awards granted in December 2020
consisted of stock options to purchase 1,190,529 QRTEA shares, with a term of seven years (the 2020 Maffei Term
Options).

Annual Awards

Pursuant to the 2019 Maffei Employment Agreement, the aggregate grant date fair value of Mr. Maffei’s annual equity
awards is $17.5 million for each year during the term of the 2019 Maffei Employment Agreement and is comprised of awards
of time-vested stock options (the Annual Options), performance-based restricted stock units (Annual Performance
RSUs) or a combination of award types, at Mr. Maffei’s election, allocable across our company, Liberty Media and each of
the other Service Companies (collectively, the Annual Awards). Vesting of any Annual Performance RSUs will be
subject to the achievement of one or more performance metrics to be approved by our compensation committee and the
compensation committee of Liberty Media or the applicable Service Company with respect to its allocable portion of the
Annual Performance RSUs. For a description of Mr. Maffei’s Annual Awards, see “—Compensation Discussion and
Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—Maffei Equity Awards—Maffei
Annual Equity Awards.”

Aircraft Usage

Pursuant to a February 5, 2013 letter agreement between Mr. Maffei and Liberty Media, Mr. Maffei is entitled to 120 hours
per year of personal flight time through the first to occur of (i) the termination of his employment, subject to any continued
right to use the corporate aircraft as described below or pursuant to the terms of his employment arrangement in effect at the
time of the termination or (ii) the cessation of ownership or lease of corporate aircraft. During 2020, pursuant to the
November 11, 2015 and December 13, 2019 letter agreements between Liberty Media and Mr. Maffei, Mr. Maffei was
entitled to 50 additional hours per year of personal flight time if he reimbursed us for such usage through the first to occur

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EX ECUTIV E COM P ENS AT IO N

of (i) the termination of his employment or (ii) the cessation of ownership or lease of corporate aircraft. If Mr. Maffei’s
employment is terminated due to disability, for good reason or without cause, Mr. Maffei would be entitled to continued use
of the company’s aircraft for 12 months after termination of his employment. Mr. Maffei incurs taxable income, calculated
in accordance with the SIFL value, for all personal use of corporate aircraft under the February 5, 2013 letter agreement.
Mr. Maffei incurs taxable income at the SIFL rates minus amounts paid under time sharing agreements with Liberty
Media. Pursuant to aircraft time sharing agreements between Liberty Media and Qurate Retail, we pay Liberty Media for
any costs, calculated in accordance with Part 91 of the Federal Aviation regulations associated with Mr. Maffei using the
corporate aircraft that are allocable to us. We reimburse Liberty Media for Mr. Maffei’s use of the corporate aircraft for our
business, and we also reimburse Liberty Media for Mr. Maffei’s personal use of the corporate aircraft. Pursuant to the
aircraft time sharing agreements between Liberty Media and Mr. Maffei, Mr. Maffei reimburses Liberty Media for costs
associated with his up to 50 hours of personal use of the corporate aircraft under the November 11, 2015 and December 13,
2019 letter agreements. Flights where there are no passengers on company-owned aircraft are not charged against the
120 hours of personal flight time per year allotted to Mr. Maffei if the flight department determines that the use of a NetJets,
Inc. supplied aircraft for a proposed personal flight would be disadvantageous to Liberty Media due to (i) use of budgeted
hours under the then current Liberty Media fractional ownership contract with NetJets, Inc. or (ii) higher flight cost as
compared to the cost of using company owned aircraft.

Termination Payments and Benefits

Mr. Maffei will be entitled to the following payments and benefits from Liberty Media (with Liberty Media being reimbursed
by our company for its allocated portion of the severance benefits pursuant to the amended services agreement) if his
employment is terminated at Liberty Media under the circumstances described below, subject to the execution of releases
by Liberty Media and Mr. Maffei in a form to be mutually agreed. The following discussion also summarizes the termination
payments and benefits that Mr. Maffei would be entitled to if his services are terminated at our company under the
scenarios described below.

Termination by Liberty Media without Cause or by Mr. Maffei for Good Reason. If Mr. Maffei’s employment is
terminated by Liberty Media without cause (as defined in the 2019 Maffei Employment Agreement) or if Mr. Maffei terminates
his employment for good reason (as defined in the 2019 Maffei Employment Agreement and as amended pursuant to the
Letter Agreement), he is entitled to the following: (i) his accrued base salary, any accrued but unpaid bonus for the prior
completed year, any unpaid expense reimbursements and any amounts due under applicable law; (ii) a severance
payment of two times his base salary during the year of his termination to be paid in equal installments over 24 months;
(iii) fully vested shares with an aggregate grant date fair value of $35 million consisting of shares of the applicable series of
common stock from Liberty Media, Liberty Broadband, Liberty TripAdvisor and us; (iv) full vesting of his upfront equity
awards and full vesting of the annual equity awards for the year in which the termination occurs (including the grant and
full vesting of such annual equity awards if the termination occurs before they have been granted); (v) lump sum cash
payment of two times the average annual cash performance bonus paid for the two calendar years ending prior to the
termination, but in no event less than two times his target annual cash performance bonus of $17 million, with (subject to
certain exceptions) up to 25% of such amount payable in shares of the applicable series of common stock from Liberty
Media, Liberty Broadband, Liberty TripAdvisor and us; (vi) a lump sum cash payment equal to the greater of (x) $17 million
or (y) the annual cash performance bonus otherwise payable for the year of termination, in each case, prorated based on the
number of days that have elapsed within the year of termination (including the date of termination), with (subject to
certain exceptions) up to 25% of such amount payable in shares of the applicable series of common stock from Liberty
Media, Liberty Broadband, Liberty TripAdvisor and us; and (vii) continued use for 12 months after such termination of certain
services and perquisites provided by Liberty Media, including continued use of Liberty’s aircraft (collectively, the severance
benefits).

On June 3, 2021, our Company and Liberty Media entered into the Letter Agreement with Mr. Maffei pursuant to which
Mr. Maffei waived his right to assert that the Specified Events (as defined below) would constitute a change in control (as
defined in the 2019 Maffei Employment Agreement) or good reason (as defined in the 2019 Maffei Employment Agreement),
with respect to our company, and agreed not to terminate his employment with our company for good reason in connection
with or arising out of the Option Cancellation (as defined below) or any of the Specified Events.

Termination at our Company by our Company without Cause or by Mr. Maffei for Good Reason. If Mr. Maffei’s
services at our company are terminated by us without cause (as defined in the 2019 Maffei Employment Agreement) or by
Mr. Maffei for good reason (as defined in the 2019 Maffei Employment Agreement and as amended pursuant to the
Letter Agreement), he will be entitled to full vesting of the upfront equity awards and the annual equity awards, in each

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case, granted by us for the year of his termination, and if Mr. Maffei remains employed by Liberty Media at or following the
date of termination of his services to our company, he will also be entitled to payment of our allocated portion of the
annual cash performance bonus for the year, prorated for the portion of the calendar year in which Mr. Maffei served as an
officer of our company. Other than as described above, no severance benefits will be due to Mr. Maffei if he remains
employed by Liberty Media at or following the date of termination of his services to our company.

Termination by Reason of Death or Disability. In the event of Mr. Maffei’s death or disability, he will be entitled to the
same payments and benefits as if his services had been terminated without cause or for good reason as described in
“—Termination by Liberty Media without Cause or by Mr. Maffei for Good Reason.”

For Cause Termination at our Company. In the event Mr. Maffei’s services to our company are terminated by us for
cause, he will forfeit any unvested portion of the upfront equity awards granted by us, and if the termination for cause occurs
before the close of business on December 31 of the relevant grant year, Mr. Maffei will forfeit our allocated portion of the
annual cash performance bonus and all of the annual equity awards granted by our company for that grant year. If Mr. Maffei’s
services are terminated by our company for cause after the close of business on December 31 of the relevant grant year,
but prior to the date on which our compensation committee certifies achievement of the performance metric for any
outstanding performance-based restricted stock units for the grant year, the award will remain outstanding until such date
and will vest to the extent determined by our compensation committee.

Voluntary Termination at our Company without Good Reason. If Mr. Maffei voluntarily terminates the services he
provides to us without good reason, he will be entitled to pro rata vesting of the upfront equity awards granted by our
company (based on the number of days that have elapsed over the four-year vesting period), pro rata vesting of his annual
equity awards for the year of termination granted by us (based on the elapsed number of days in the calendar year of
termination) and a pro rata payment of our allocated portion of his annual cash performance bonus of $17 million (based
upon the elapsed number of days in the calendar year of termination). Any performance-based restricted stock units for
the year of termination that are unvested on the date of termination will remain outstanding until the performance criteria is
determined and will vest pro rata (based upon the elapsed number of days in the calendar year of termination) to the
extent determined by our compensation committee (at a level not less than 100% of the target award). Other than as
described above, no severance benefits will be due to Mr. Maffei if he remains employed by Liberty Media at or following
the date of termination of his services to us. If Mr. Maffei also voluntarily terminates his employment with Liberty Media,
rather than being entitled to payment of our allocated portion of his annual cash bonus, Mr. Maffei would be entitled to
receive a payment from Liberty Media equal to $17 million, prorated based upon the elapsed number of days in the calendar
year of termination. Our company would reimburse Liberty Media for our allocable portion of this payment.

DAVID RAWLINSON II

Rawlinson Employment Agreement

We entered into the Rawlinson Employment Agreement with David Rawlinson II, effective July 12, 2021. The arrangement
provides for a three year and five months term commencing on August 1, 2021 and ending on December 31, 2024, with
an annual base salary of $1.25 million and a one-time cash signing bonus of $1.4 million (which Mr. Rawlinson will be
required to repay in the event he terminates his employment without good reason or is terminated by the company for cause
prior to August 1, 2022).

Rawlinson Annual Cash Performance Bonus

Pursuant to the Rawlinson Employment Agreement, for each year during the term of the Rawlinson Employment Agreement,
Mr. Rawlinson is eligible to receive an annual target cash performance bonus equal to 125% of his annual base salary,
with a maximum annual cash performance bonus capped at 200% of his annual base salary. The Rawlinson Employment
Agreement provided that for the 2021 calendar year, Mr. Rawlinson’s annual cash performance bonus would be paid in
an amount equal to target, prorated based upon the number of days from his start date through the end of 2021.

Rawlinson Term Equity Awards

On August 18, 2021, in connection with the execution of the Rawlinson Employment Agreement, Mr. Rawlinson became
entitled to receive term equity awards (the 2021 Rawlinson Term Options and 2021 Rawlinson Term RSUs, both as
discussed above and combined, the Rawlinson term awards). The 2021 Rawlinson Term Options consisted of time-
vested stock options that vest 50% on December 31, 2023 and 50% on December 31, 2024 subject to Mr. Rawlinson’s

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EX ECUTIV E COM P ENS AT IO N

continued employment, except as described below. These stock options provide Mr. Rawlinson with the option to purchase
1,185,053 QRTEA shares. The 2021 Rawlinson Term RSUs consisted of time-vested restricted stock units that vested
13% on December 10, 2021 and will vest 29% on each of December 10, 2022, December 10, 2023 and December 10, 2024
subject to Mr. Rawlinson’s continued employment, except as described below. This award consisted of 508,865 QRTEA
restricted stock units. For additional information on the Rawlinson term awards, see “—Compensation Discussion and
Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—Other 2021 Awards—Multiyear
Stock Options and RSUs” above.

Rawlinson Annual Equity Awards

Pursuant to the Rawlinson Employment Agreement, Mr. Rawlinson will receive an annual $4 million grant of performance-
based restricted stock units with respect to QRTEA shares for each year during the term of the Rawlinson Employment
Agreement (the Rawlinson annual performance RSUs). Vesting of any Rawlinson annual performance RSUs will be
subject to the achievement of one or more performance metrics to be approved by our compensation committee. The
Rawlinson annual performance RSUs granted to Mr. Rawlinson in 2021 were prorated based upon the number of days from
his start date through the end of 2021 and were subject to vesting based only on his personal performance. For additional
information on the Rawlinson annual performance RSUs received in 2021, see “—Compensation Discussion and
Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—Annual Performance Awards—
QVC CEO RSUs” above.

Termination Payments and Benefits

Upon a termination of Mr. Rawlinson’s employment for any reason, he will be entitled to his accrued base salary and any
accrued vacation through the date of termination, any unpaid expense reimbursements, any vested benefits owed in
accordance with other applicable plans, programs and arrangements and any amounts due under applicable law (the
standard entitlements). Subject to Mr. Rawlinson’s execution of a release in our favor with the procedures set forth in the
Rawlinson Employment Agreement and his compliance with restrictive covenants, including perpetual confidentiality
provisions, non-competition and non-interference provisions for 18 months following the termination of his employment
and non-solicitation of employees provisions for 2 years following the termination of his employment, Mr. Rawlinson will also
be entitled to the following payments and benefits if his employment is terminated under the circumstances described
below.

Termination without Cause or for Good Reason

If Mr. Rawlinson’s employment is terminated without cause (as defined in the Rawlinson Employment Agreement) or if
Mr. Rawlinson terminates his employment for good reason (as defined in the Rawlinson Employment Agreement), in addition
to the standard entitlements, Mr. Rawlinson will be entitled to (i) a severance payment of one-and-a-half times the sum of
his base salary and his target annual performance bonus, to be paid in equal installments over 24 months and (ii) any
awarded but unpaid bonus for the calendar year prior to the year in which his termination occurs. Any unvested Rawlinson
term awards will vest pro rata on a tranche-by-tranche basis based on the number of days that have elapsed from August 1,
2021 through his termination date, plus 365 days, and the stock option portion of the awards will remain exercisable for
90 days following termination. The Rawlinson annual performance RSUs relating to the year in which Mr. Rawlinson’s
termination occurs will vest to the extent our compensation committee determines that the performance criteria were met,
and Mr. Rawlinson will receive a pro rata portion thereof based on the number of days he was employed during the year
of his termination. If Mr. Rawlinson’s employment is terminated without cause or if he terminates his employment for good
reason 12 months following an approved transaction (as defined in the 2020 incentive plan), any unvested Rawlinson
term awards and Rawlinson annual performance RSUs will vest in in full.

Termination by Reason of Death or Disability

In the event of Mr. Rawlinson’s death or disability, in addition to the standard entitlements, Mr. Rawlinson (or in the event of
his death, his designated beneficiary or estate) will be entitled to receive (i) continued payment of his base salary for one
year and (ii) any awarded but unpaid bonus for the calendar year prior to the year in which his termination occurs. In addition,
any unvested Rawlinson term awards and Rawlinson annual performance RSUs will vest in in full. The stock option
portion of Mr. Rawlinson’s term awards will remain exercisable for a one-year period.

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Termination At or Following the Term of the Rawlinson Employment Agreement

If Mr. Rawlinson’s employment is terminated at or following the expiration of the term of the Rawlinson Employment
Agreement, in addition to the standard entitlements, Mr. Rawlinson will receive any awarded but unpaid bonus for the
calendar year prior to the year in which his termination occurs. If his employment ends on December 31, 2024, he will also
be eligible to receive his 2024 annual cash performance bonus and his 2024 Rawlinson annual performance RSUs will
continue to vest, in each case, as if he had remained employed through the certification date and the stock option portion
of the Rawlinson term awards will remain exercisable for 90 days.

Termination for Cause Voluntary Termination without Good Reason

The Rawlinson Employment Agreement provides that, in the event Mr. Rawlinson is terminated for cause (as defined in
the Rawlinson Employment Agreement) or Mr. Rawlinson terminates his employment without good reason (as defined in
the Rawlinson Employment Agreement), he will be entitled only to the standard entitlements. In each case, Mr. Rawlinson will
forfeit all rights to his unvested Rawlinson term awards and any unvested Rawlinson annual performance RSUs. If
Mr. Rawlinson’s employment is terminated for cause, he will forfeit any vested stock options granted as part of the Rawlinson
term awards. If Mr. Rawlinson terminates his employment without good reason, any vested stock options granted as part
of the Rawlinson term awards will remain exercisable for 90 days and he will be entitled to any awarded but unpaid bonus for
the calendar year prior to the year in which his termination occurs.

MICHAEL A. GEORGE

Employment Arrangement and Employment Agreement Extension

In 2015 we entered into the George Employment Agreement with Michael A. George, then President and Chief Executive
Officer of QVC, which was amended by the George Employment Agreement Extension in November 2020. The George
Employment Agreement Extension extended the end of Mr. George’s employment term to December 31, 2021, and
beginning January 1, 2021 provided Mr. George with an annual base salary of $1.5 million and an annual target cash
bonus equal to 100% of Mr. George’s annual base salary, with a maximum bonus equal to 240% of his annual base salary.

Pursuant to the terms of the George Employment Agreement Extension, in March 2021, Mr. George was eligible to
receive an award of performance-based RSUs with a target value equal to $5.5 million, with vesting of this award subject
to the achievement of performance criteria established by our compensation committee. Mr. George also was eligible to
receive an award of time-based RSUs with a value of $5.5 million, with vesting of this award subject to Mr. George’s
continued employment through December 10, 2021. For additional detail on these awards, see “—Compensation Discussion
and Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—Annual Performance
Awards—QVC CEO RSUs” above.

In connection with the approval of Mr. George’s original compensation arrangement in 2015, Mr. George was granted
1,680,065 stock options to purchase shares of QRTEA (the 2015 Term Options), which were fully vested as of December 31,
2020 and will expire on December 31, 2022. Mr. George was granted 577,385 stock options (the New CEO Term Options)
in 2018 in recognition of his appointment as Chief Executive Officer and President of our company, which were fully
vested as of December 15, 2020 and have a term of seven years, and 182,983 QRTEA performance-based RSUs, of
which 152,825 vested as of December 21, 2020, with the remainder forfeited.

As noted above, Mr. George served as our Chief Executive Officer until October 1, 2021, at which time he transitioned to
the role of Senior Advisor. Mr. George stepped down from his role as Senior Advisor on December 31, 2021 at the end of the
term of the George Employment Agreement Extension. Pursuant to the George Employment Agreement and the George
Employment Agreement Extension, if Mr. George’s employment was terminated at the expiration of the term on
December 31, 2021, Mr. George would not be entitled to any severance benefits, but his 2021 annual cash bonus and the
2021 George RSUs would remain outstanding until any performance criteria had been determined to have been met or
not and would have vested to the extent determined by the compensation committee. For the actual 2021 annual cash bonus
and 2021 George RSUs paid to Mr. George, see “—Compensation Discussion and Analysis—Elements of 2021
Compensation—2021 Performance-Based Bonuses—QVC Bonus Awards” and “—Compensation Discussion and Analysis—
Elements of 2021 Executive Compensation—Equity Incentive Compensation—Annual Performance Awards—QVC CEO
RSUs” above.

6 2 / 2022 PROXY STATEMENT

EX ECUTIV E COM P ENS AT IO N

However, had Mr. George been terminated for cause (as defined in the George Employment Agreement) or had he
terminated his employment without good reason (as defined in the George Employment Agreement) prior to December 31,
2021, he would have been entitled only to his accrued base salary and any amounts due under applicable law, and he
would have forfeited all rights to any unvested performance-based RSUs or RSUs, as described above, but his vested
options would have remained exercisable for 90 days. In addition, if Mr. George had terminated his employment without good
reason, he would have been entitled to any awarded but unpaid annual bonus for the prior calendar year. If, however,
Mr. George’s employment had been terminated by QVC without cause or if he terminated his employment for good reason
prior to December 31, 2021, (i) Mr. George would have received base salary continuation through December 31, 2021
and any awarded but unpaid annual bonus, (ii) his vested options would have remained exercisable until the earlier of
(x) their original expiration date or (y) two years from the termination (except if Mr. George dies during such two-year period,
the later of (a) the end of such two-year period and (b) the end of the one-year period that began on his date of death),(iii)
the performance-based RSUs described above would have remained outstanding until the end of the applicable
performance period, for the compensation committee to then determine whether the performance criteria for such
performance period were met and (iv) the time-based RSUs described above would have vested in full. Lastly, if Mr. George’s
employment had terminated prior to December 31, 2021 as a result of his death or disability, Mr. George would have
received (i) a payment of one year of base salary and any awarded but unpaid annual bonus, (ii) his 2015 Term Options
would have remained exercisable through the original expiration date and (iii) his performance-based RSUs and RSUs
described above would have fully vested.

As a condition to Mr. George’s receipt of any severance payments as a result of his termination, as well as any acceleration
of vesting or extension of exercise periods for his equity grants, Mr. George would have been required to execute a
severance agreement and release in favor of QVC in accordance with the procedures set forth in the George Employment
Agreement, and receipt of severance benefits would have also been conditioned on his compliance with the post-
termination non-compete restrictions in his employment agreement.

EQUITY INCENTIVE PLANS

The 2020 incentive plan is administered by the compensation committee of our board of directors with regard to all
awards granted under the 2020 incentive plan (other than awards granted to the nonemployee directors), and the
compensation committee has full power and authority to determine the terms and conditions of such awards. The 2020
incentive plan is administered by the full board of directors with regard to all awards granted under the 2020 incentive plan
to nonemployee directors, and the full board of directors has full power and authority to determine the terms and conditions
of such awards. The 2020 incentive plan is designed to provide additional remuneration to officers, employees, nonemployee
directors and independent contractors for service to our company and to encourage those persons’ investment in our
company. Non-qualified stock options, SARs, restricted shares, restricted stock units, cash awards, performance awards
or any combination of the foregoing may be granted under the 2020 incentive plan (collectively, incentive plan awards).

As of December 31, 2021, (i) the maximum number of shares of our common stock with respect to which incentive plan
awards may be issued under the 2020 incentive plan is 42,153,763 subject to anti-dilution and other adjustment provisions
of the 2020 incentive plan and (ii) no nonemployee director may be granted during any calendar year incentive plan awards
having a value (as determined on the grant date of such award) in excess of $1 million. Shares of our common stock
issuable pursuant to incentive plan awards made under the existing incentive plans are made available from either
authorized but unissued shares or shares that have been issued but reacquired by our company.

QVC 1997 NONQUALIFIED DEFINED PENSION RESTORATION PLAN, AS AMENDED AND RESTATED

The QVC 1997 Nonqualified Defined Pension Restoration Plan, as amended and restated (the Pension Restoration Plan),
in which Mr. George is a participant, is unfunded and is maintained primarily for the purpose of providing a select group
of QVC-U.S.’s management with a nonqualified defined contribution benefit. Effective as of January 1, 2012, the Pension
Restoration Plan has been frozen so that no additional amounts may be credited to the Pension Restoration Plan, and no
additional employees may be eligible to participate. Participants’ existing account balances will continue to be credited
with earnings at the rate of, (1) for certain amounts credited to a participant’s account for the period prior to January 1, 2006,
12% per annum for amounts credited for the period from the date on which such amount was credited through October 31,
2011 or, (2) for all other amounts, the prime lending rate identified by the Bank of New York, plus 3%, each compounded
annually at the end of the calendar year. Distribution of participants’ vested percentages will be made in a single lump sum
payment on the first day of the month following such participant’s separation from service, with the exception of specified

QU RATE R ETA IL , INC.

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EXECU TIVE COMP ENSAT IO N

employees who are subject to Section 409A of the Code, and thus receive the payment on the first day of the sixth month
of such employee’s separation. The Pension Restoration Plan can be amended or terminated at any time.

PAY RATIO INFORMATION

We are providing the following information about the relationship of the median annual total compensation of our employees
and the total compensation of Mr. Rawlinson, our chief executive officer on December 31, 2021, pursuant to the SEC’s
pay ratio disclosure rules set forth in Item 402(u) of Regulation S-K. We believe our pay ratio is a reasonable estimate
calculated in a manner consistent with the SEC’s pay ratio disclosure rules. However, because these rules provide flexibility
in determining the methodology, assumptions and estimates used to determine pay ratios and the fact that workforce
composition issues differ significantly between companies, our pay ratio may not be comparable to the pay ratios reported
by other companies.

To identify our median employee, we first determined our employee population as of December 31, 2021, which consisted
of employees located in the U.S., China, Germany, Italy, Japan, Poland and the United Kingdom, representing all full-
time, part-time, seasonal and temporary employees employed by our company and our consolidated subsidiaries, QVC,
Cornerstone Brands, Inc., HSN, Inc. and Zulily, on that date. As is typical for a retail company, a significant portion of our
employee population works in call centers, warehouses and distribution centers operated by our subsidiaries. Using
information from our payroll records and Form W-2s (or its equivalent for non-U.S. employees), we then measured each
employee’s gross wages for calendar year 2021, consisting of base salary, commissions, actual bonus payments, long-term
incentive cash payments, if any, realized equity award value and taxable fringe benefits. We did not annualize the
compensation of employees who were new hires or took a leave of absence in 2021. Also, we did not annualize the
compensation of our temporary or seasonal employees. In addition, we did not make any cost-of-living adjustments to the
gross wages information.

Once we identified our median employee, we then determined the median employee’s total compensation, including any
perquisites and other benefits, in the same manner that we determined the total compensation of our named executive
officers for purposes of the Summary Compensation Table above.

Since Mr. Rawlinson was not our chief executive officer for all of 2021, we included in the table below his compensation
as reported in the Summary Compensation Table, plus an additional amount to reflect annualizing (i) his base salary, (ii) his
target annual bonus amount for 2021 and (iii) his 2021 Rawlinson RSUs, in accordance with applicable SEC guidance.
The ratio of our chief executive officer’s total annual compensation to that of the median employee was as follows:

Chief Executive Officer Total Annual Compensation

Median Employee Total Annual Compensation

Ratio of Chief Executive Officer to Median Employee Total Annual Compensation

$20,364,269

29,674

686:1

In connection with the execution of the Rawlinson Employment Agreement, Mr. Rawlinson received the 2021 Rawlinson
Term RSUs and the 2021 Rawlinson Term Options in August 2021, which had aggregate grant date fair values of $5,343,083
and $5,948,895, respectively, and a cash signing bonus of $1,400,000 in August 2021. Given that these grants and the
signing bonus were made outside of our normal, annual compensation practices, we have also included a ratio that
eliminates from the total compensation of Mr. Rawlinson the grant date fair value of the 2021 Rawlinson Term RSUs, the
2021 Rawlinson Term Options and the signing bonus.

Chief Executive Officer Total Annual Compensation (without the 2021 Rawlinson Term RSUs, the
2021 Rawlinson Term Options and the signing bonus)

Median Employee Total Annual Compensation

Ratio of Chief Executive Officer to Median Employee Total Annual Compensation

$7,672,292

29,674

259:1

6 4 / 2022 PROXY STATEMENT

GRANTS OF PLAN-BASED AWARDS

The following table contains information regarding plan-based incentive awards granted during the year ended
December 31, 2021 to the named executive officers.

EX ECUTIV E COM P ENS AT IO N

Estimated Future Payouts
under Non-Equity
Incentive Plan Awards

Estimated Future Payouts
under Equity
Incentive Plan Awards

Grant
Date

Threshold
($)(1)

Target
($)(1)

Maximum
($)(1)

Threshold
(#)(2)

Target
(#)(2)

Maximum
(#)(3)

All Other
Stock
Awards:
Number
of Shares
of Stock
or Units
(#)

All Other
Option
Awards:
Number of
Securities
Underlying
Options
(#)

Exercise
or Base
Price of
Option
Awards
($/Sh)

Grant
Date Fair
Value of
Stock and
Option
Awards
($)

03/10/2021(4)
03/10/2021(5)
06/03/2021

08/18/2021(7)
08/18/2021
08/18/2021

03/10/2021(4)
03/10/2021(5)
03/10/2021

03/10/2021(4)
03/10/2021(5)

—
—
—

—
—

2,890,000 5,780,000
—
—

—
—

—
—
—

1,500,000 3,600,000
—
—

—
—

102,319
—

204,638
—

187,203
—

374,405
—

187,272
—

374,544
—

—
—
—

—
—

—

—
229,022 343,533

—
—

—

— 1,101,321(6)

—
—
—

—
—

—
—
— 2,954,384
— 15,033,032

— 1,498,340
— 5,343,083
5,948,895

142,699
—
—

—

—
— 508,865(8)
—

— 1,185,053(9) 10.50

—

—
423,403 635,105

—
—

—

— 423,403(10)

—
9,844

—
17,783

—
—

—
—
—

—
—

—
—
— 5,461,899
— 5,461,899

—
—

—
126,988

—
229,401

Name

Gregory B. Maffei

QRTEA
QRTEB

David Rawlinson II

QRTEA
QRTEA
QRTEA

Michael A. George

QRTEA
QRTEA

Brian J. Wendling

QRTEA

Albert E. Rosenthaler

QRTEA

Renee L. Wilm

QRTEA

(1) Our 2021 performance-based bonus program does not provide for a threshold bonus amount. The amounts in the Target column
represent the target amount that would have been payable to each named executive officer upon satisfaction of the performance
criteria under the 2021 performance-based bonus program. For Messrs. Maffei, Wendling and Rosenthaler and Ms. Wilm, the amounts
in the Maximum column represent the maximum amount that could have been payable to each named executive officer. With
respect to Mr. George, the amount in the Maximum column represents the maximum amount that would have been payable to
Mr. George assuming (x) the 2021 Adjusted OIBDA minimum of $2,079 million was achieved and (y) both the 2021 Adjusted OIBDA
performance and the individual performance metrics were satisfied at a level such that no reduction was made to the maximum
amount payable by our compensation committee. For more information on this performance bonus program, see “—Compensation
Discussion and Analysis—Elements of 2021 Executive Compensation—2021 Performance-based Bonuses” above. For the
actual bonuses paid by our company and QVC, as applicable, see the amounts included for 2021 in the column entitled Non-Equity
Incentive Plan Compensation in the “Summary Compensation Table” above. Mr. Rawlinson’s 2021 annual cash bonus was
guaranteed, and therefore it is not reported in this table. For the actual amount of Mr. Rawlinson’s 2021 annual cash bonus, see
the amount included for 2021 in the column entitled Bonus in the “Summary Compensation Table” and corresponding footnote 2,
above.

(2) The terms of the 2021 Maffei RSUs, the 2021 Chief RSUs, the 2021 Rawlinson RSUs and the 2021 George RSUs do not provide
for a threshold amount that would be payable upon satisfaction of the performance criteria established by the compensation
committee. With respect to the 2021 Maffei RSUs and the 2021 George RSUs, the amount in the Target column represents the
target amount that would have been payable to Messrs. Maffei and George, respectively, assuming achievement of the target
performance goals. With respect to the 2021 Rawlinson RSUs and the 2021 Chief RSUs, the amounts in the Target column represent
the target amount that would have been payable to the named executive officer assuming (x) achievement of the performance
goals was attained and (y) our compensation committee determined not to reduce such payout after considering the criteria
established by our compensation committee in March 2021. For the actual 2021 Maffei RSUs, 2021 Chief RSUs , 2021 Rawlinson
RSUs and 2021 George RSUs that vested, see “—Compensation Discussion and Analysis—Elements of 2021 Executive
Compensation—Equity Incentive Compensation—Maffei Equity Awards—Maffei Annual Equity Awards” and “—Compensation
Discussion and Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—Annual Performance
Awards.”

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EXECU TIVE COMP ENSAT IO N

(3) With respect to the 2021 Maffei RSUs and the 2021 George RSUs, the amount in the Maximum column represents the maximum

amount that would have been payable assuming maximum achievement of the performance goals. For the actual 2021 Maffei RSUs
and 2021 George RSUs that vested, see “—Compensation Discussion and Analysis—Elements of 2021 Executive Compensation—
Equity Incentive Compensation—Maffei Equity Awards—Maffei Annual Equity Awards” and “—Compensation Discussion and
Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—Annual Performance Awards.”

(4) Reflects the date on which our compensation committee established the terms of the 2021 performance-based bonus program, as
described under “—Compensation Discussion and Analysis—Elements of 2021 Executive Compensation—2021 Performance-
based Bonuses—Qurate Retail Awards.”

(5) Reflects the date on which our compensation committee established the terms of the 2021 Maffei RSUs, the 2021 Chief RSUs
and the 2021 George RSUs, as described under “—Compensation Discussion and Analysis—Elements of 2021 Executive
Compensation—Equity Incentive Compensation—Maffei Equity Awards—Maffei Annual Equity Awards” and “—Compensation
Discussion and Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—Annual Performance
Awards.”

(6) The 2021 Maffei Restricted Share Award vests 50% on December 10, 2024 and 50% on June 3, 2026.

(7) Reflects the date on which our compensation committee established the terms of the 2021 Rawlinson RSUs, as described under

“—Compensation Discussion and Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—Annual
Performance Awards.”

(8) The 2021 Rawlinson Term RSUs vested 13% on December 10, 2021 and vest 29% on December 10, 2022, 29% on December 10,

2023 and 29% on December 10, 2024.

(9) The 2021 Rawlinson Term Options vest 50% on December 31, 2023 and 50% on December 31, 2024.

(10) The 2021 George Time-Based RSUs vested in full on December 10, 2021.

6 6 / 2022 PROXY STATEMENT

EX ECUTIV E COM P ENS AT IO N

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

The following table contains information regarding unexercised options and unvested awards of RSUs which were
outstanding as of December 31, 2021 and held by the named executive officers.

Option awards

Stock awards

Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable

Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable

Equity
Incentive
Plan Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options (#)

Number
of Shares
or Units
of Stock
That Have
Not Vested
(#)

Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
($)

Option
Exercise
Price
($)

Option
Expiration
Date

Equity
Incentive
Plan Awards:
Number of
Unearned
Shares, Units
or Other
Rights That
Have Not
Vested
(#)

Equity
Incentive
Plan Awards:
Market or
Payout Value
of Unearned
Shares, Units
or Other
Rights That
Have Not
Vested
($)

411,804
—
—
1,498,287
315,980
360,087
46,671

—

—
—

3,458,652
1,184,334

—

90,609
219,877
—

—

231,717
523,892
12,268
—

—

—
—

—

4,422,819(1)
1,309,581(2)

—
—
—
—

—

1,333,184(5)

—
—

—

—
—
72,866(7)

—

—
—
—

131,629(7)

—

634,624(8)
35,445(7)

—

—
—
—
—
—
—
—

—

—
—

—

—
—
—

—

—
—
—
—

—

—
—

—

12.50
3.98
8.84
12.20
11.59
13.49
8.76

—

12/26/2024
12/15/2026
12/10/2027
03/29/2023
05/11/2024
03/05/2025
03/06/2026

—

—
—
—
—
—
—
—

—

—
—
—
—
—
—
—

—

— 1,101,321(4)

8,370,040

8.98

08/18/2028

—

—
—
—
—
—
—
—

229,022(3)(9)

1,740,567

—

—
—

—

—
442,713(6)(9) 3,364,619

142,699(3)(9)
—

1,084,512
—

12.62
10.77

12/31/2022
08/15/2025

—

13.43
13.43
8.84

—

14.38
14.38
12.50
8.84

—

4.99
8.84

—

05/12/2022
05/12/2023
12/10/2027

—

03/04/2022
03/04/2023
12/26/2024
12/10/2027

—

11/13/2026
12/10/2027

—

—
—

—

—
—
—

—

—
—
—
—

—

—
—

—

—
—

—

—
—
—

—

—
—
—
—

—

—
—

—

—
—

423,403(3)(9)

3,217,863

—
—
—

9,844(3)(9)

74,814

—
—
—
—

17,783(3)(9)

135,151

—
—

17,783(3)(9)

135,151

Name

Gregory B. Maffei
Option Awards

QRTEA
QRTEA
QRTEA
QRTEB
QRTEB
QRTEB
QRTEB
RSU Award
QRTEA

Restricted Share Award

QRTEB

David Rawlinson II
Option Award
QRTEA
RSU Awards
QRTEA
QRTEA

Michael A. George
Option Awards

QRTEA
QRTEA
RSU Award
QRTEA

Brian J. Wendling
Option Awards

QRTEA
QRTEA
QRTEA
RSU Award
QRTEA

Albert E. Rosenthaler
Option Awards

QRTEA
QRTEA
QRTEA
QRTEA
RSU Award
QRTEA

Renee L. Wilm
Option Awards

QRTEA
QRTEA
RSU Award
QRTEA

(1) Vests on December 31, 2023.

(2) Vests on December 31, 2024.

(3) Represents the target number of 2021 Maffei RSUs that Mr. Maffei could earn and the target number of 2021 Rawlinson RSUs

and 2021 Chief RSUs that each of Messrs. Rawlinson, Wendling and Rosenthaler and Ms. Wilm could earn based on our performance
in 2021, as well as the target number of 2021 George RSUs that Mr. George could earn based on QVC’s performance during
2021.

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EXECU TIVE COMP ENSAT IO N

(4) Vests 50% on December 10, 2024 and 50% on June 3, 2026.

(5) Vests 50% on December 31, 2023 and 50% on December 31, 2024.

(6) Represents the remaining portion of the 2021 Rawlinson Term RSUs, which vests one-third on December 10, 2022, one-third on

December 10, 2023 and one-third on December 10, 2024.

(7) Represents the 2020 NEO Multiyear Options that vest 50% on December 10, 2022 and 50% on December 10, 2023.

(8) Vests 50% on September 23, 2022 and 50% on September 23, 2023.

(9) The table below represents the cash dividend equivalent rights and the special cash dividend equivalent rights outstanding on
QRTEA RSUs, which are subject to the same terms and conditions (including vesting) as the corresponding original RSU.

Name

Gregory B. Maffei

David Rawlinson II

Michael A. George

Brian J. Wendling

Albert E. Rosenthaler

Renee L. Wilm

Amounts ($)

Special Cash Dividend Equivalent Rights

286,277

731,764

529,253(a)

12,305

22,228

(a)

In connection with the compensation committee certifying the payout of Mr. George’s 2021 George RSUs, $195,823 of Mr. George’s
November Special Dividend was forfeited.

6 8 / 2022 PROXY STATEMENT

EX ECUTIV E COM P ENS AT IO N

OPTION EXERCISES AND STOCK VESTED

The following table sets forth information concerning the vesting of RSUs held by our named executive officers during the
year ended December 31, 2021. None of our named executive officers exercised any options during the year ended
December 31, 2021.

Name
Gregory B. Maffei

QRTEA
QRTEB
QRTEP

David Rawlinson II

QRTEA
QRTEB
QRTEP

Michael A. George

QRTEA
QRTEB
QRTEP

Brian J. Wendling

QRTEA
QRTEB
QRTEP

Albert E. Rosenthaler

QRTEA
QRTEB
QRTEP

Renee L. Wilm

QRTEA
QRTEB
QRTEP

Option Awards

Stock Awards

Number of
shares
acquired
on exercise
(#)

Value
realized on
exercise
($)

Number of
shares
acquired
on vesting
(#)(1)

Value
realized on
vesting
($)

—
—
—

584,359
—
17,530

7,614,198
—
1,771,056

66,152
—
—

537,154
—
—

1,409,343
—
29,577

16,284,831
—
2,988,164

16,731
—
501

34,446
—
1,033

27,680
—
830

218,005
—
50,616

448,831
—
104,364

360,670
—
83,855

(1)

Includes shares withheld in payment of withholding taxes at election of holder.

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EXECU TIVE COMP ENSAT IO N

NONQUALIFIED DEFERRED COMPENSATION PLANS

The following table sets forth certain information regarding the Pension Restoration Plan in which Mr. George participated
during the year ended December 31, 2021. During 2021, no other named executive officers participated in the Pension
Restoration Plan.

Name

Michael A. George

Executive
contributions
in 2021
($)

Registrant
contributions
in 2021
($)

Aggregate
earnings in
2021
($)

Aggregate
withdrawals/
distributions
($)

Aggregate
balance at
12/31/21
($)

—

1,174

—

19,949

7 0 / 2022 PROXY STATEMENT

EX ECUTIV E COM P ENS AT IO N

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN
CONTROL

The following table sets forth the potential payments to our named executive officers, other than Mr. George, if their
employment had terminated or a change in control had occurred, in each case, as of December 31, 2021, which was the
last business day of our last completed fiscal year. For purposes of the following table, we have assumed that Mr. Maffei’s
employment had terminated at each of Liberty Media, Qurate Retail and the other Service Companies. In the event of
such a termination or change in control, the actual amounts may be different due to various factors. In addition, we may
enter into new arrangements or modify these arrangements from time to time.

The amounts provided in the table are based on the closing market prices on December 31, 2021 for our QRTEA common
stock and QRTEB common stock, which both were $7.60. Any option awards held by the named executive officers that
had an exercise price that was more than the closing market price of our QRTEA common stock or QRTEB common stock,
as applicable, on December 31, 2021 have been excluded from the table below. For all other option awards, the value of
the options shown in the table is based on the spread between the exercise price of the award and the applicable closing
market price. The value of the RSUs shown in the table is based on the applicable closing market price and the number of
unvested RSUs that would have vested in the applicable termination scenario according to the terms of the applicable
award.

Each of our named executive officers has received awards and payments under the existing incentive plans. Additionally,
each of Messrs. Maffei and Rawlinson is entitled to certain payments and acceleration rights upon termination under his
respective employment agreement.

The circumstances giving rise to these potential payments and a brief summary of the provisions governing their payout
are described below and in the footnotes to the table (other than those described under “—Executive Compensation
Arrangements—Gregory B. Maffei—Termination Payments and Benefits” and “—Executive Compensation Arrangements—
David Rawlinson II—Termination Payments and Benefits,” which are incorporated by reference herein):

VOLUNTARY TERMINATION

Each of the named executive officers holds equity awards that were issued under our existing incentive plans. Under
these plans and the related award agreements, in the event of a voluntary termination of his or her employment with our
company for any reason, each named executive officer would typically only have a right to the equity grants that vested prior
to his or her termination date. However, if Mr. Maffei had voluntarily terminated his employment without good reason
(i) his 2019 Maffei Term Options and 2020 Maffei Term Options would have been subject to pro rata vesting (based on the
number of days elapsed during the four-year vesting period) and, (ii) assuming such termination occurred after the close
of business on December 31, 2021, his 2021 Maffei RSUs would have remained outstanding until any performance criteria
had been determined to have been met or not and would have vested to the extent determined by the compensation
committee. Mr. Rawlinson would have forfeited all rights to his unvested 2021 Rawlinson Term RSUs, 2021 Rawlinson
RSUs and 2021 Rawlinson Term Options upon a voluntary termination without good reason as of December 31, 2021. Each
of Messrs. Maffei and Rawlinson would have been entitled to certain other benefits upon a voluntary termination of his
employment with our company as of December 31, 2021. The type and amount of severance pay and benefits Mr. Maffei
would receive would depend on whether he remained employed by Liberty Media at or following the date of termination of
his services to our company or whether his employment with Liberty Media was also voluntarily terminated. These
additional severance payments and benefits and Rawlinson’s benefits are described above in “—Executive Compensation
Arrangements—Gregory B. Maffei—Termination Payments and Benefits—Voluntary Termination at our Company without
Good Reason,” and “—Executive Compensation Arrangements—David Rawlinson II—Termination Payments and Benefits—
Termination for Cause or Voluntary Termination without Good Reason.” Mr. George’s termination became effective as of
December 31, 2021 per the terms of the George Employment Agreement Extension. Regardless of such termination,
Mr. George remained eligible to receive his 2021 annual bonus per the terms of the George Employment Agreement
Extension. See “—Executive Compensation Arrangements—Michael A. George—Employment Agreement and
Employment Agreement Extension.” Messrs. Wendling and Rosenthaler and Ms. Wilm are not entitled to any severance
payments or other benefits upon a voluntary termination of his or her employment.

TERMINATION FOR CAUSE

All outstanding equity grants constituting options, whether unvested or vested but not yet exercised, and all equity grants
constituting unvested RSUs under the existing incentive plans would be forfeited by any named executive officer who is

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EXECU TIVE COMP ENSAT IO N

terminated for “cause” (other than Mr. Maffei in the case of equity grants constituting vested options or similar rights).
However, if Mr. Maffei’s employment had been terminated for cause after the close of business on December 31, 2021,
his 2021 Maffei RSUs would have remained outstanding until any performance criteria had been determined to have been
met or not and would have vested to the extent determined by the compensation committee. Unless there is a different
definition in the applicable award agreement, each of the 2010 incentive plan, 2016 incentive plan and 2020 incentive plan,
define “cause” as insubordination, dishonesty, incompetence, moral turpitude, other misconduct of any kind and the
refusal to perform duties and responsibilities for any reason other than illness or incapacity; provided that, if such termination
is within 12 months after a change in control (as described below), “cause” means a felony conviction for fraud,
misappropriation or embezzlement. With respect to Mr. Maffei’s equity grants, “cause,” as defined in the applicable award
agreement, means (i) Mr. Maffei’s willful failure to follow the lawful instructions of the board of directors of our company;
(ii) the commission by Mr. Maffei of any fraud, misappropriation or misconduct that causes demonstrable material injury
to our company or its subsidiaries; (iii) Mr. Maffei’s conviction of, or plea of guilty or nolo contendere to, a felony; or
(iv) Mr. Maffei’s failure to comply in any material respect with any written agreement between him and our company or any
of our subsidiaries if such failure causes demonstrable material injury to our company or any of our subsidiaries, except
that Mr. Maffei is entitled to certain procedural and cure rights relating to a termination for cause, except in the case of a
termination for cause based on a felony conviction. Mr. Maffei has certain continuing rights to exercise vested options or
similar rights following a termination for cause under his equity award agreements. With respect to Mr. Rawlinson’s equity
grants, “cause,” as defined in his employment agreement, means (i) Mr. Rawlinson’s material breach of his employment
agreement, (ii) Mr. Rawlinson’s engagement in illegal conduct or misconduct, which, in each case, is materially injurious
to the company, (iii) the commission by Mr. Rawlinson of fraud or embezzlement or other serious misconduct against the
company, (iv) the conviction of, or plea of nolo contendere by, Mr. Rawlinson of any felony, or (v) the conviction of
Mr. Rawlinson of a misdemeanor which conviction relates to Mr. Rawlinson’s suitability for employment in his then-current
positions (excluding any conviction for minor traffic violations).

TERMINATION WITHOUT CAUSE OR FOR GOOD REASON

As of December 31, 2021, Mr. Maffei’s unvested equity awards consisted of the 2019 Maffei Term Options, the 2020
Maffei Term Options, the 2021 Maffei RSUs and the 2021 Maffei Restricted Share Award. Upon a termination of his
employment by our company without cause (as defined in the 2019 Maffei Employment Agreement) or by him for good
reason (as defined in the 2019 Maffei Employment Agreement and as amended pursuant to the Letter Agreement), the 2019
Maffei Term Options, the 2020 Maffei Term Options and the 2021 Maffei Restricted Share Award would have vested and,
assuming such termination occurred after the close of business on December 31, 2021, the 2021 Maffei RSUs would have
remained outstanding until any performance criteria had been determined to have been met or not and would have
vested to the extent determined by the compensation committee. Mr. Maffei would also be entitled to severance pay and
benefits from our company upon a termination without cause or by him for good reason. The type and amount of severance
pay and benefits Mr. Maffei would receive would depend on whether he remained employed by Liberty Media at or
following the date of termination of his services to our company or whether his employment with Liberty Media was also
terminated without cause or for good reason. These additional severance payments and benefits are described above in
“—Executive Compensation Arrangements—Gregory B. Maffei—Termination Payments and Benefits—Termination by
Liberty Media without Cause or by Mr. Maffei for Good Reason” and “—Executive Compensation Arrangements—Gregory
B. Maffei—Termination Payments and Benefits—Termination at our Company without Cause or by Mr. Maffei for Good
Reason.”

As of December 31, 2021, Mr. Rawlinson’s unvested equity awards consisted of the 2021 Rawlinson Term RSUs, the
2021 Rawlinson Term Options and the 2021 Rawlinson RSUs. Upon a termination of his employment by our company
without cause (as defined in the Rawlinson Employment Agreement) or by him for good reason (as defined in the Rawlinson
Employment Agreement) the unvested 2021 Rawlinson Term RSUs and 2021 Rawlinson Term Options would have
vested pro rata on a tranche-by-tranche basis based on the number of days that have elapsed from his start date through
the termination date plus an additional 365 days. Upon a termination without cause or by Mr. Rawlinson for good reason
as of December 31, 2021, the 2021 Rawlinson RSUs would have remained outstanding and vested to the extent the
compensation committee determined that the performance criteria were met. Mr. Rawlinson would also be entitled to
severance pay and benefits from our company upon a termination without cause or by him for good reason. These
additional severance payments and benefits are described above in “—Executive Compensation Arrangements—David
Rawlinson II—Termination Payments and Benefits—Termination without Cause or for Good Reason.”

As of December 31, 2021, Messrs. Wendling’s and Rosenthaler’s only unvested equity awards were their 2021 Chief
RSUs and 2020 NEO Multiyear Options. Ms. Wilm’s only unvested equity awards as of December 31, 2021 were her 2019

7 2 / 2022 PROXY STATEMENT

EX ECUTIV E COM P ENS AT IO N

multi-year stock option award, 2020 NEO Multiyear Options and 2021 Chief RSUs. Upon a termination of employment
without cause, Ms. Wilm’s 2019 multi-year stock option award and the 2020 NEO Multiyear Options provide for vesting of
a pro rata portion of each vesting tranche of the applicable award (based on the number of days that have elapsed from the
grant date through the termination date, plus an additional 365 days, over the applicable tranche’s vesting period). Upon
a termination without cause as of December 31, 2021, the 2021 Chief RSUs held by these officers would have remained
outstanding until any performance criteria had been determined to have been met or not and would have vested to the extent
determined by the compensation committee. None of Messrs. Wendling or Rosenthaler or Ms. Wilm is entitled to any
severance pay or other benefits upon a termination without cause.

DEATH

In the event of death of any of the named executive officers, the existing incentive plans and applicable award agreements
would have provided for vesting of any outstanding options and the lapse of restrictions on any RSU awards (except that,
assuming Mr. Maffei’s death occurred after the close of business on December 31, 2021, the 2021 Maffei RSUs would have
remained outstanding until any performance criteria had been determined to have been met or not and would have
vested to the extent determined by the compensation committee). Each of Mr. Maffei and Mr. Rawlinson is also entitled to
certain payments and other benefits if he dies while employed by our company, as described above in “— Executive
Compensation Arrangements—Gregory B. Maffei—Termination Payments and Benefits—Termination by Reason of
Death or Disability,” and “— Executive Compensation Arrangements—David Rawlinson II—Termination Payments and
Benefits—Termination by Reason of Death or Disability.”

No amounts are shown for payments pursuant to life insurance policies, which Liberty Media makes available to all of its
employees, including Messrs. Maffei, Wendling, Rosenthaler and Ms. Wilm in their capacity as named executive officers of
Qurate Retail, and which Qurate Retail makes available to Mr. Rawlinson.

DISABILITY

If the employment of any of the named executive officers had been terminated due to disability, which is defined in the
existing incentive plans or applicable award agreements, such plans or agreements would have provided for vesting of any
outstanding options and the lapse of restrictions on any RSU awards (except that, assuming Mr. Maffei’s termination due
to disability occurred after the close of business on December 31, 2021, the 2021 Maffei RSUs would have remained
outstanding until any performance criteria had been determined to have been met or not and would have vested to the
extent determined by the compensation committee). Each of Mr. Maffei and Mr. Rawlinson is also entitled to certain
payments and other benefits upon a termination of his employment due to disability, as described above in “—Executive
Compensation Arrangements—Gregory B. Maffei—Termination Payments and Benefits—Termination by Reason of Death
or Disability,” and “—Executive Compensation Arrangements—David Rawlinson II—Termination Payments and Benefits—
Termination by Reason of Death or Disability.”

No amounts are shown for payments pursuant to short-term and long-term disability policies, which Liberty Media makes
available to all of its employees, including Messrs. Maffei, Wendling and Rosenthaler and Ms. Wilm in their capacity as
named executive officers of Qurate Retail, and which Qurate Retail makes available to Mr. Rawlinson.

CHANGE IN CONTROL

In case of a change in control, the incentive plans provide for vesting of any outstanding options (other than the 2019
Maffei Term Options and the 2020 Maffei Term Options) and the lapse of restrictions on any RSU or restricted share awards
(other than the 2021 Maffei Restricted Share Award) held by the named executive officers. A change in control is generally
defined as:

• The acquisition by a non-exempt person (as defined in the incentive plans) of beneficial ownership of at least 20%

of the combined voting power of the then outstanding shares of our company ordinarily having the right to vote in the
election of directors, other than pursuant to a transaction approved by our board of directors.

• The individuals constituting our board of directors over any two consecutive years cease to constitute at least a

majority of the board, subject to certain exceptions that permit the board to approve new members by approval of
at least two-thirds of the remaining directors.

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EXECU TIVE COMP ENSAT IO N

• Any merger, consolidation or binding share exchange that causes the persons who were common stockholders of

our company immediately prior thereto to lose their proportionate interest in the common stock or voting power of the
successor or to have less than a majority of the combined voting power of the then outstanding shares ordinarily
having the right to vote in the election of directors, the sale of substantially all of the assets of the company or the
dissolution of the company.

In the case of a change in control described in the last bullet point, our compensation committee may determine not to
accelerate the existing equity awards of the named executive officers if equivalent awards will be substituted for the existing
awards. For purposes of the tabular presentation below, we have assumed that our named executive officers’ existing
unvested equity awards (other than the 2019 Maffei Term Options, the 2020 Maffei Term Options and the 2021 Maffei
Restricted Share Award) would vest in the case of a change in control described in the last bullet. A change in control (as
defined in the 2019 Maffei Employment Agreement as amended pursuant to the Letter Agreement) of Liberty Media would
provide Mr. Maffei with a short time period during which to exercise his right to terminate his employment for good
reason, which would result in vesting of his 2019 Maffei Term Options, 2020 Maffei Term Options and the 2021 Maffei
Restricted Share Award. For purposes of the tabular presentation below, we have assumed that Mr. Maffei does not exercise
his right to terminate his employment for good reason in connection with a change in control of our company.

As discussed above, Mr. George stepped down from his role as Senior Advisor as of December 31, 2021 at the end of the
term of the George Employment Agreement Extension. He was not entitled to any severance benefits or acceleration or
accelerated vesting of any unvested equity awards, but he remained eligible to receive his 2021 annual bonus and the 2021
George RSUs to the extent certified by the compensation committee. See “—Compensation Discussion and Analysis—
Elements of 2021 Executive Compensation—2021 Performance-Based Bonuses—QVC Bonus Awards” and
“—Compensation Discussion and Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—
Annual Performance Awards—QVC CEO RSUs” above for additional detail on the 2021 annual bonus and 2021 George
RSUs Mr. George actually received.

7 4 / 2022 PROXY STATEMENT

BENEFITS PAYABLE UPON TERMINATION OR CHANGE IN CONTROL

EX ECUTIV E COM P ENS AT IO N

Name

Gregory B. Maffei
Severance
Options
RSUs and Restricted Shares
Perquisites(7)

Total

David Rawlinson II
Base Compensation Continuing Payment
Severance
Options
RSUs

Total

Brian J. Wendling
Options
RSUs

Total

Albert E. Rosenthaler
Options
RSUs

Total

Renee L. Wilm
Options
RSUs

Total

Voluntary
Termination
Without Good
Reason
($)

Termination
for Cause
($)

Termination
Without Cause
or for Good
Reason
($)

Death
($)

Disability
($)

After a Change
in Control
($)

2,890,000(1)
8,005,301(3)
1,740,567(3)

—
12,635,868

—
—(4)
1,740,567(4)

—
1,740,567

12,750,000(2)
16,010,605(5)
10,110,607(5)
120,849
38,992,060

12,750,000(2) 12,750,000(2)
16,010,605(5) 16,010,605(5)
10,110,607(5) 10,110,607(5)

—
38,871,212

120,849
38,992,060

—
—(6)
1,740,567(6)

—
1,740,567

—
—
—(10)
—(10)
—

—(10)
—(10)
—

—
—
—(11)
—(11)
—

—(11)
—(11)
—

—

1,250,000(8) 1,250,000(8)

4,218,750(9)
—(12)
3,372,264(12)
7,591,014

—
—(13)

—
—(13)
4,449,131(13) 4,449,131(13)
5,699,131

5,699,131

—
—
—(14)
4,449,131(14)
4,449,131

—(12)
74,814(12)
74,814

—(13)
74,814(13)
74,814

—(14)
74,814(14)
74,814

—(12)
135,151(12)
135,151

—(13)
135,151(13)
135,151

—(14)
135,151(14)
135,151

1,500,129(12)
135,151(12)

1,656,369(13) 1,656,369(13)
135,151(13)

135,151(13)

1,656,369(14)
135,151(14)

1,635,280

1,791,519

(1)

(2)

If Mr. Maffei had voluntarily terminated his employment without good reason at Qurate Retail, Liberty Media and each of the other
Service Companies (as defined in the 2019 Maffei Employment Agreement) as of December 31, 2021, he would have been
entitled to receive $17 million in a lump sum, prorated based on the number of days that have elapsed within the year of termination,
with up to 25% of such amount payable in shares of common stock as set forth in more detail in the 2019 Maffei Employment
Agreement. See “—Executive Compensation Arrangements—Gregory B. Maffei—Termination Payments and Benefits—Voluntary
Termination at our Company without Good Reason” above. The amount in the table includes our allocable portion of this payment
(17%) for which we would reimburse Liberty Media.

If Mr. Maffei’s employment at Qurate Retail, Liberty Media and each of the other Service Companies had been terminated as of
December 31, 2021 by Qurate Retail, Liberty Media and each of the other Service Companies without cause (as defined in the 2019
Maffei Employment Agreement), by him for good reason (as defined in the 2019 Maffei Employment Agreement) (whether before
or within a specified period following a change in control), in each case, subject to execution of a mutual release, or due to Mr. Maffei’s
death or disability, he would have been entitled to receive (i) a payment of two times his 2021 base salary payable in 24 equal
monthly installments, (ii) fully vested shares of common stock with an aggregate grant date fair value of $35 million, (iii) a lump
sum payment of an amount equal to two times his average annual bonus paid for the two calendar years prior to separation, but in
no event an amount that is less than two times his aggregate target bonus of $17 million and (iv) a lump sum cash payment
equal to the greater of (x) $17 million or (y) the annual cash performance bonus otherwise payable for the year of termination, in
each case, prorated based on the number of days that have elapsed within the year of termination, with up to 25% of such amount
payable in shares of common stock as set forth in more detail in the 2019 Maffei Employment Agreement. See “—Executive
Compensation Arrangements—Gregory B. Maffei—Termination Payments and Benefits—Termination by Liberty Media without
Cause or by Mr. Maffei for Good Reason” above. The amount in the table includes our allocable portion of this payment (17%) for
which we would reimburse Liberty Media. The amount in the table does not include the lump sum cash payment described in
(iv) because Mr. Maffei had already been paid his 2021 cash bonus prior to December 31, 2021.

(3) Based on the number of unvested options and RSUs held by Mr. Maffei at December 31, 2021 that would vest pursuant to the

following: If Mr. Maffei terminated his employment without good reason, he would have been entitled to pro rata vesting of the 2019
Maffei Term Options and the 2020 Maffei Term Options, (based on the number of days that had elapsed over the four-year
vesting period). Also, assuming such termination occurred after the close of business on December 31, 2021, the 2021 Maffei
RSUs would have remained outstanding until any performance criteria had been determined to have been met or not and would
have vested to the extent determined by the compensation committee, and the 2021 Maffei Restricted Share Award would have been
forfeited. Because the exercise prices of all options held by Mr. Maffei, whether vested or unvested, other than the 2019 Maffei

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EXECU TIVE COMP ENSAT IO N

Term Options, are more than the closing price of QRTEA and QRTEB shares on December 31, 2021, the only value included in
the table is the value of the 2019 Maffei Term Options. As described above in “—Compensation Discussion and Analysis—
Elements of 2021 Executive Compensation—Equity Incentive Compensation—Maffei Equity Awards—Maffei Annual Equity Awards,”
our compensation committee vested all of the 2021 Maffei RSUs, which is reflected in the table above.

(4) Based on the number of unvested RSUs held by Mr. Maffei at December 31, 2021 that would vest pursuant to the following: If

Mr. Maffei’s employment had been terminated for cause, he would have forfeited his 2019 Maffei Term Options, his 2020 Maffei
Term Options, his 2021 Maffei Restricted Share Award and, assuming such termination occurred after the close of business on
December 31, 2021, his 2021 Maffei RSUs would have remained outstanding until any performance criteria had been determined
to have been met or not and would have vested to the extent determined by the compensation committee. Because the exercise
prices of all vested options held by Mr. Maffei are more than the closing price of QTREA and QRTEB shares on December 31,
2021, no value has been included for Mr. Maffei’s vested options in the table. As described above, in “—Compensation Discussion
and Analysis—Elements of 2021 Executive Compensation—Equity Incentive Compensation—Maffei Equity Awards—Maffei
Annual Equity Awards,” our compensation committee vested all of the 2021 Maffei RSUs, which is reflected in the table above.

(5) Based on the number of unvested options, RSUs and restricted shares held by Mr. Maffei at December 31, 2021 that would vest

pursuant to the following: If Mr. Maffei’s employment had been terminated without cause (as defined in the 2019 Maffei Employment
Agreement), for good reason (as defined in the 2019 Maffei Employment Agreement) (whether before or within a specific period
following a change in control) or due to Mr. Maffei’s death or disability, his 2019 Maffei Term Options, his 2020 Maffei Term Options,
and his 2021 Maffei Restricted Share Award would have vested in full and, assuming such terminations occurred after the close
of business on December 31, 2021, his 2021 Maffei RSUs would have remained outstanding until any performance criteria had been
determined to have been met or not and would have vested to the extent determined by the compensation committee. Because
the exercise prices of all options held by Mr. Maffei, whether vested or unvested, other than the 2019 Maffei Term Options, are more
than the closing price of QRTEA and QRTEB shares on December 31, 2021, the only value included in the table is the value of
the 2019 Maffei Term Options. As described above, in “—Compensation Discussion and Analysis—Elements of 2021 Executive
Compensation—Equity Incentive Compensation—Maffei Equity Awards—Maffei Annual Equity Awards,” our compensation committee
vested all of the 2021 Maffei RSUs, which is reflected in the table above.

(6) Based on the number of 2021 Maffei RSUs. As described above, our compensation committee vested Mr. Maffei at 100% of his

2021 Maffei RSUs, which is reflected in the table above. A change in control (as defined in the 2019 Maffei Employment Agreement)
of our company would provide Mr. Maffei with a short time period during which to exercise his rights to terminate his employment
for good reason, which would result in vesting of his 2019 Maffei Term Options, his 2020 Maffei Term Options and his 2021 Maffei
Restricted Share Award, but for purposes of the tabular presentation above, we have assumed that Mr. Maffei does not exercise
his right to terminate his employment for good reason in connection with a change in control of our company. Because the exercise
prices of all vested options held by Mr. Maffei at December 31, 2021 are more than the closing price of QRTEA and QRTEB
shares on December 31, 2021, no value has been included for Mr. Maffei’s vested options in the table.

(7)

(8)

(9)

If Mr. Maffei’s employment had been terminated at our company’s election for any reason (other than cause) or by Mr. Maffei for
good reason (as defined in his employment agreement) or by reason of disability, as of December 31, 2021, he would have been
entitled to receive personal use of the corporate aircraft for 120 hours per year over a 12-month period. Perquisite amount of
$710,874 represents the maximum potential cost of using the corporate aircraft for 120 hours based on an hourly average of the
incremental cost of use of the corporate aircraft. The amount in the table includes our allocable portion of this payment (17%) for
which we would reimburse Liberty Media.

If Mr. Rawlinson’s employment had been terminated by reason of his death or disability as of December 31, 2021, subject to the
execution of a release by him or in the event of his death, his estate, he or his estate would have been entitled to receive continued
payment of his 2021 base salary for a period of one year following his termination.

If Mr. Rawlinson’s employment had been terminated by our company without cause (as defined in the Rawlinson Employment
Agreement) or by him for good reason (as defined in the Rawlinson Employment Agreement), subject to execution of a release, he
would have been entitled to receive a payment equal to 1.5 times the sum of (a) his 2021 base salary and (b) his 2021 target
bonus, payable in 18 equal monthly installments.

(10) Mr. Rawlinson would have forfeited all rights to his unvested 2021 Rawlinson Term RSUs, 2021 Rawlinson RSUs and 2021

Rawlinson Term Options upon a voluntary termination without good reason as of December 31, 2021. If Messrs. Wendling’s or
Rosenthaler’s or Ms. Wilm’s employment had been terminated by him or her as of December 31, 2021, all of the 2021 Chief RSUs,
the 2020 NEO Multiyear Options and Ms. Wilm’s stock options granted in 2019 would have been forfeited. Mr. Rawlinson and
Ms. Wilm did not have any vested options as of December 31, 2021, but Messrs. Wendling’s and Rosenthaler’s vested options
would have remained outstanding and exercisable in accordance with their terms in the event each of Messrs. Wendling and
Rosenthaler terminated his employment as of December 31, 2021. However, because the exercise prices of all vested options held
by Messrs. Wendling and Rosenthaler are more than the closing price of QRTEA shares on December 31, 2021, no value has
been included for their vested options in the table.

(11) If each of Messrs. Rawlinson, Wendling and Rosenthaler and Ms. Wilm was terminated by Qurate Retail for “cause” as of

December 31, 2021, all of his her outstanding option and RSU grants would have been forfeited.

7 6 / 2022 PROXY STATEMENT

EX ECUTIV E COM P ENS AT IO N

(12) Based on the number of unvested options and unvested RSUs held by the named executive officer as of December 31, 2021 that
would have vested pursuant to the following: If Messrs. Rawlinson’s, Wendling’s or Rosenthaler’s or Ms. Wilm’s employment had
been terminated without cause or, for Mr. Rawlinson, if he terminated his employment for good reason, in each case, as of
December 31, 2021, the 2021 Rawlinson RSUs and the 2021 Chief RSUs would have remained outstanding until any performance
criteria had been determined to have been met or not and would have vested to the extent determined by the compensation
committee. As described above in “—Compensation Discussion and Analysis—Elements of 2021 Executive Compensation—
Equity Incentive Compensation—Annual Performance Awards—Chief RSU Awards,” our compensation committee vested all of
the 2021 Rawlinson RSUs and all of the 2021 Chief RSUs, which is reflected in the table above. Mr. Rawlinson’s 2021 Rawlinson
Term RSUs and 2021 Rawlinson Term Options, Ms. Wilm’s stock options granted in 2019 and Messrs. Wendling’s and Rosenthaler’s
and Ms. Wilm’s 2020 NEO Multiyear Options would have vested pursuant to the forward-vesting provisions in such named executive
officer’s award agreements. Because the exercise prices of Mr. Rawlinson’s 2021 Rawlinson Term Options, Messrs. Wendling’s
and Rosenthaler’s and Ms. Wilm’s 2020 NEO Multiyear Options and any vested options held by our named executive officers are
more than the closing market price of QRTEA shares on December 31, 2021, the only value included in the table is the value of
Ms. Wilm’s stock options granted in 2019.

(13) Based on the number of unvested options and RSUs held by the named executive officer as of December 31, 2021 that would

vest pursuant to the following: If Messrs. Rawlinson’s, Wendling’s or Rosenthaler’s or Ms. Wilm’s employment had been terminated
due to death or disability as of December 31, 2021 all of the 2021 Rawlinson Term RSUs, the 2021 Rawlinson Term Options, the
2021 Rawlinson RSUs, the 2020 NEO Multiyear Options, the 2021 Chief RSUs and Ms. Wilm’s stock options granted in 2019 would
have vested. Because the exercise prices of the 2021 Rawlinson Term Options, Messrs. Wendling’s and Rosenthaler’s and
Ms. Wilm’s 2020 NEO Multiyear Options and any vested options held by our named executive officers are more than the closing
price of QRTEA shares on December 31, 2021, the only value included in the table is the value of Ms. Wilm’s stock options granted
in 2019.

(14) Upon a change of control, we have assumed for purposes of the tabular presentation above that all of the 2021 Rawlinson Term

RSUs, the 2021 Rawlinson Term Options, the 2021 Rawlinson RSUs, the 2020 NEO Multiyear Options, the 2021 Chief RSUs and
Ms. Wilm’s stock options granted in 2019 would have vested. Because the exercise prices of Mr. Rawlinson’s 2021 Rawlinson Term
Options, Messrs. Wendling’s and Rosenthaler’s and Ms. Wilm’s 2020 NEO Multiyear Options and any vested options held by our
named executive officers are more than the closing market price of QRTEA shares on December 31, 2021, the only value included
in the table the value of Ms. Wilm’s stock options granted in 2019.

QU RATE R ETA IL , INC.

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EXECU TIVE COMP ENSAT IO N

EQUITY COMPENSATION PLAN INFORMATION

The following table sets forth information as of December 31, 2021, with respect to shares of our common stock authorized
for issuance under our equity compensation plans.

Plan Category

Equity compensation plans approved by security
holders:

Qurate Retail, Inc. 2011 Nonemployee Director
Incentive Plan (As Amended and Restated as of
December 17, 2015), as amended

QRTEA

QRTEB

QRTEP

Qurate Retail, Inc. 2012 Incentive Plan (As
Amended and Restated as of March 31, 2015), as
amended

QRTEA

QRTEB

QRTEP

Qurate Retail, Inc. 2016 Omnibus Incentive Plan,
as amended

QRTEA

QRTEB

QRTEP

Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights
(a)

Weighted average
exercise price of
outstanding options,
warrants and rights

Number of securities
available for future
issuance under equity
compensation plans
(excluding securities
reflected
in column (a))

57,706

$12.82

—

11,914,015

1,498,287

—

23,686,480

722,738

—

$13.33

$12.20

—

$ 6.94

$12.35

—

—(1)

—(2)

—(3)

Qurate Retail, Inc. 2020 Omnibus Incentive Plan,
as amended

28,187,628(4)

QRTEA

QRTEB

QRTEP

4,725,521

$ 9.28

—

Equity compensation plans not approved by security
holders: None(5)

Total

QRTEA

QRTEB

QRTEP

40,383,722

2,221,025

—

28,187,628

(1) The Qurate Retail, Inc. 2011 Nonemployee Director Incentive Plan (As Amended and Restated as of December 17, 2015), as

amended, expired on September 7, 2016 and, as a result, no further grants are permitted under this plan.

(2) The Qurate Retail, Inc. 2012 Incentive Plan (As Amended and Restated as of March 31, 2015), as amended, expired on

November 26, 2017 and, as a result, no further grants are permitted under this plan.

(3) Upon adoption of the Qurate Retail, Inc. 2020 Omnibus Incentive Plan, as amended, the board of directors ceased making any
further grants under the prior incentive plans, including the Qurate Retail, Inc. 2016 Omnibus Incentive Plan, as amended.

7 8 / 2022 PROXY STATEMENT

EX ECUTIV E COM P ENS AT IO N

(4) The Qurate Retail, Inc. 2020 Omnibus Incentive Plan, as amended, permits grants of, or with respect to, shares of any series of

our common stock. Shares remaining in the Qurate Retail, Inc. 2016 Omnibus Incentive Plan as of the adoption of the Qurate Retail,
Inc. 2020 Omnibus Incentive Plan are available for issuance under the Qurate Retail, Inc. 2020 Omnibus Incentive Plan.

(5) On October 1, 2015, in connection with our acquisition of Zulily, we assumed each outstanding award issued pursuant to the Zulily,
Inc. 2009 Equity Incentive Plan and the Zulily, Inc. 2013 Equity Plan (together, the Zulily Plans and such awards collectively, the
Assumed Zulily Awards). The Assumed Zulily Awards were converted into a corresponding award with respect to shares of
QRTEA. We do not intend to issue any new grants under the Zulily Plans in the future. As of December 31, 2021, the number of
securities to be issued upon exercise of outstanding options, warrants and rights under the Zulily, Inc. 2009 Equity Incentive Plan
was 528,927 QRTEA shares, which have a weighted average exercise price of $7.91. With respect to the Zulily, Inc. 2013 Equity Plan,
the number of securities to be issued upon exercise of outstanding options, warrants and rights was 92,715 QRTEA shares,
which have a weighted average exercise price of $19.14.

On December 29, 2017, in connection with our acquisition of HSN, Inc., we assumed each outstanding award issued pursuant to
the HSN, Inc. Second Amended and Restated 2008 Stock and Annual Incentive Plan and the HSN, Inc. 2017 Omnibus Incentive Plan
(together, the HSN Plans and such awards collectively, the Assumed HSN Awards). The Assumed HSN Awards were converted
into a corresponding award with respect to shares of QRTEA. We do not intend to issue any new grants under the HSN Plans in the
future. As of December 31, 2021, the number of securities to be issued upon exercise of outstanding options, warrants and rights
under the HSN, Inc. Second Amended and Restated 2008 Stock and Annual Incentive Plan was 1,105,081 QRTEA shares, which
have a weighted average exercise price of $13.78.

QU RATE R ETA IL , INC.

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SECUR ITY OWNE RSH IP O F C E RTA IN B E NE F IC IA L OW NE RS AN D MA N AGE ME N T

Security Ownership of Certain Beneficial
Owners and Management

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

The following table sets forth information concerning shares of our capital stock beneficially owned by each person or
entity known by us to own more than five percent of the outstanding shares of each series of our capital stock. All of such
information is based on publicly available filings, unless otherwise known to us from other sources.

The security ownership information is given as of February 28, 2022 and, in the case of percentage ownership information,
is based upon (1) 371,170,514 QRTEA shares, (2) 8,163,190 QRTEB shares and (3) 12,628,266 QRTEP shares, in each
case, outstanding on February 28, 2022. The percentage voting power is presented on an aggregate basis for all QRTEA
and QRTEB shares.

Name and Address of Beneficial Owner
John C. Malone

c/o Qurate Retail, Inc.
12300 Liberty Boulevard
Englewood, CO 80112

Gregory B. Maffei

c/o Qurate Retail, Inc.
12300 Liberty Boulevard
Englewood, CO 80112

Dodge & Cox

555 California Street
40th Floor
San Francisco, CA 94104

The Vanguard Group
100 Vanguard Blvd.
Malvern, PA 19355

FPR Partners, LLC

199 Freemont Street
Suite 2500
San Francisco, CA 94105
Ameriprise Financial, Inc.

145 Ameriprise Financial Center
Minneapolis, MN 55474

Less than one percent

Title of
Series
QRTEA
QRTEB
QRTEP

QRTEA
QRTEB
QRTEP

QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP

QRTEA
QRTEB
QRTEP

Amount and
Nature of
Beneficial
Ownership
30,421,522(1)
—(1)
865,530(1)

429,169(2)
9,376,581(2)
181,901(2)

51,455,745(3)

—
—

33,882,670(4)

—
—

19,693,302(5)

—
—

19,207,352(6)

—
—

Percent
of Series
(%)
8.2
—
6.9

*
90.3
1.4

13.9
—
—

9.1
—
—
5.3
—
—

5.2
—
—

Voting
Power
(%)
6.7

19.8

10.8

4.3

2.6

(1)

(2)

Information with respect to shares of our capital stock beneficially owned by Mr. Malone, a director of our board, is also set forth in
“— Security Ownership of Management.”

Information with respect to shares of our capital stock beneficially owned by Mr. Maffei, our Chairman of the Board, is also set
forth in “— Security Ownership of Management.”

(3) Based on Amendment No. 5 to Schedule 13G, filed February 14, 2022 by Dodge & Cox, which states that, with respect to QRTEA,

Dodge & Cox has sole voting power over 49,019,048 shares and sole dispositive power over 51,455,745 shares.

(4) Based on Amendment No. 5 to Schedule 13G, filed February 10, 2022 by The Vanguard Group (Vanguard), which states that,

with respect to QRTEA, Vanguard has shared voting power over 271,249 shares, sole dispositive power over 33,317,271 shares
and shared dispositive power over 565,399 shares.

8 0 / 2022 PROXY STATEMENT

SE C UR IT Y OW NE RS HIP OF C E RTA IN B E NE F IC IA L OWN E RS A ND M ANAG EM ENT

(5) Based on Schedule 13G, filed February 14, 2022 jointly by FPR Partners, LLC (FPR), Andrew Raab and Bob Peck, which states

that, with respect to QRTEA shares, FPR has sole voting power and sole dispositive power over 19,693,302 shares and, Mr. Raab
and Mr. Peck have shared voting power and shared dispositive power over 19,693,302 shares.

(6) Based on Amendment No. 1 to Schedule 13G, filed February 14, 2022 jointly by Ameriprise Financial, Inc. (Ameriprise) and

Columbia Management Investment Advisers, LLC (Columbia), which states that, with respect to QRTEA, Ameriprise has shared
voting power over 11,867,199 shares and shared dispositive power over 19,207,352 shares and Columbia has shared voting power
over 11,790,389 shares and shared dispositive power over 19,129,037 shares.

SECURITY OWNERSHIP OF MANAGEMENT

The following table sets forth information with respect to the ownership by each of our directors and named executive
officers (as defined herein) and by all of our directors and executive officers as a group of shares of QRTEA, QRTEB and
QRTEP. The security ownership information with respect to our capital stock is given as of February 28, 2022 and, in the
case of percentage ownership information, is based upon (1) 371,170,514 QRTEA shares, (2) 8,163,190 QRTEB shares
and (3) 12,628,266 QRTEP shares, in each case, outstanding on that date. The percentage voting power is presented in
the table below on an aggregate basis for all QRTEA and QRTEB shares. QRTEP shares are, however, non-voting and
therefore, in the case of percentage voting power, are not included.

Shares of capital stock issuable upon exercise or conversion of options, warrants and convertible securities that were
exercisable or convertible on or within 60 days after February 28, 2022 are deemed to be outstanding and to be beneficially
owned by the person holding the options, warrants or convertible securities for the purpose of computing the percentage
ownership of that person and for the aggregate percentage owned by the directors and named executive officers as a group,
but are not treated as outstanding for the purpose of computing the percentage ownership of any other individual person.
For purposes of the following presentation, beneficial ownership of shares of QRTEB, though convertible on a one-for-one
basis into shares of QRTEA, are reported as beneficial ownership of QRTEB only, and not as beneficial ownership of
QRTEA. So far as is known to us, the persons indicated below have sole voting and dispositive power with respect to
the shares indicated as owned by them, except as otherwise stated in the notes to the table.

The number of shares indicated as owned by the persons in the table includes interests in shares held by the Liberty
Media 401(k) Savings Plan as of February 28, 2022. The shares held by the trustee of the Liberty Media 401(k) Savings
Plan for the benefit of these persons are voted as directed by such persons.

Name

Gregory B. Maffei

Chairman of the Board and
Director

David Rawlinson II

President, Chief Executive
Officer and Director

Michael A. George

Former President and Chief
Executive Officer

John C. Malone

Director

Richard N. Barton

Director

Fiona P. Dias
Director

M. Ian G. Gilchrist

Director

Title of
Series

QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP

Amount and Nature of
Beneficial Ownership
(In thousands)

Percent of
Series
(%)

429(1)(2)(3)
9,377(1)(3)(4)
182(2)
37
—
—
6,695(1)
—
110
30,422(5)(6)
—

866(5)(6)(7)
193(1)(8)

—
**(8)
46(9)
—
**(9)
158(1)
—
—

*
90.3
1.4
*
—
—
1.8
—
*
8.2
—
6.9
*
—
*
*
—
*
*
—
—

Voting
Power
(%)

19.8

1.5

6.7

QU RATE R ETA IL , INC.

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SECUR ITY OWNE RSH IP O F C E RTA IN B E NE F IC IA L OW NE RS AN D MA N AGE ME N T

Name

Evan D. Malone

Director

Larry E. Romrell

Director

Mark C. Vadon

Director

Andrea L. Wong

Director

Albert E. Rosenthaler

Chief Corporate Development
Officer

Brian J. Wendling

Chief Accounting Officer and
Principal Financial Officer

Renee L. Wilm

Chief Legal Officer and Chief
Administrative Officer

All directors and current
executive officers as a group
(13 persons)

Title of
Series

QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP
QRTEA
QRTEB
QRTEP

Amount and Nature of
Beneficial Ownership
(In thousands)

Percent of
Series
(%)

Voting
Power
(%)

80
—
2
249(1)
**
1
570(1)
—
**
94(1)
—
1
979(1)(2)

—
6(2)

(1)

390
—
9
12
—
**

33,659(1)(2)(3)(5)(6)(8)(9)

9,377(1)(3)(4)
1,070(2)(5)(6)(7)(8)(9)

26.7

*
—
*
*
*
*
*
—
*
*
—
*
*
—
*
*
—
*
*
—
*
9.0
90.3
8.5

(1)

Less than one percent

Less than 1,000 shares

Includes beneficial ownership of shares that may be acquired upon exercise of, or which relate to, stock options exercisable within
60 days after February 28, 2022.

Gregory B. Maffei
Michael A. George
Richard N. Barton
M. Ian G. Gilchrist
Larry E. Romrell
Mark C. Vadon
Andrea L. Wong
Albert E. Rosenthaler
Brian J. Wendling

Total

(2)

Includes shares held in the Liberty Media 401(k) Savings Plan as follows:

Gregory B. Maffei
Albert E. Rosenthaler

Total

QRTEA

QRTEB

QRTEP

411,804
4,642,986
191,890
145,971
209,685
557,559
46,059
767,877
310,486
7,284,317

2,221,025
—
—
—
—
—
—
—
—
2,221,025

—
—
—
—
—
—
—
—
—
—

QRTEA

17,365
33,356
50,721

QRTEP

277
551
828

(3) The Maffei Stock Exchange Agreement (as defined and described below) contains certain provisions relating to the voting and

transfer of QRTEA and QRTEB shares beneficially owned by Mr. Maffei.

8 2 / 2022 PROXY STATEMENT

SE C UR IT Y OW NE RS HIP OF C E RTA IN B E NE F IC IA L OWN E RS A ND M ANAG EM ENT

(4)

(5)

(6)

(7)

(8)

(9)

Includes 1,101,321 QRTEB restricted shares, none of which have vested.

Includes 937,593 QRTEA shares, and 19,057 QRTEP shares held in a revocable trust with respect to which Mr. Malone and
Mr. Malone’s wife, Mrs. Leslie Malone, are trustees. Mrs. Malone has the right to revoke such trust at any time. Mr. Malone has
disclaimed beneficial ownership of the shares held by such trust.

Includes 504,840 QRTEA shares and 13,767 QRTEP shares held by two trusts which are managed by an independent trustee, of
which the beneficiaries are Mr. Malone’s adult children and in which Mr. Malone has no pecuniary interest. Mr. Malone retains the right
to substitute assets held by the trusts and has disclaimed beneficial ownership of the shares held by the trusts.

Includes 110,300 QRTEP shares held by a grantor trust of which Mrs. Malone is the grantor and Mr. Malone is the sole trustee.
Mrs. Malone retains a power of substitution and Mr. Malone has a power of appointment over the assets in the trust.

Includes 66 QRTEA shares and 1 QRTEP share held by the Barton Descendants’ Trust 12/30/2004 over which Mr. Barton has
investment power but not voting power.

Includes 9,045 restricted stock units with respect to QRTEA shares, 269 restricted stock units with respect to QRTEP shares, and
4,954 dividend equivalent stock unit rights with respect to QRTEA shares. Upon the completion of our acquisition of HSN, Inc.,
Qurate Retail assumed Ms. Dias’s outstanding deferred stock units with respect to HSN, Inc. common stock and converted such
deferred stock units into 9,045 restricted stock units with respect to QRTEA shares and dividend equivalent rights have subsequently
accrued on such restricted stock units in connection with special dividends paid on Qurate Retail’s common stock and quarterly
dividends paid on QRTEP. Ms. Dias’s restricted stock units and dividend equivalent stock unit rights will vest upon her termination
of service from the board of directors.

HEDGING DISCLOSURE

We do not have any practices or policies regarding the ability of our employees (including officers) or directors, or any of
their designees, to purchase financial instruments (including prepaid variable forward contracts, equity swaps, collars, and
exchange funds) or otherwise engage in transactions, that hedge or offset, or are designed to hedge or offset, any
decrease in the market value of our equity securities.

CHANGES IN CONTROL

We know of no arrangements, including any pledge by any person of our securities, the operation of which may at a
subsequent date result in a change in control of our company.

QU RATE R ETA IL , INC.

/ 83

CERTA IN RELATIO NSHI PS AN D R E L AT E D PARTY TR A NS ACT IO NS

Certain Relationships and Related Party
Transactions

Under our Code of Business Conduct and Ethics and Corporate Governance Guidelines, if a director or executive officer
has an actual or potential conflict of interest (which includes being a party to a proposed “related party transaction” (as defined
by Item 404 of Regulation S-K)), the director or executive officer should promptly inform the person designated by our
board to address such actual or potential conflicts. No related party transaction may be effected by our company without
the approval of the audit committee of our board or another independent body of our board designated to address such
actual or potential conflicts.

MALONE STOCK EXCHANGE AND MAFFEI ARRANGEMENTS

On May 18, 2021, Gregory B. Maffei, the Chairman of the Board and a director of our company, delivered a written offer
(the Offer) to John C. Malone, a director of our company, to acquire all of the outstanding shares of QRTEB beneficially
owned by Mr. Malone, his wife Leslie Malone and certain trusts for the benefit of Mr. Malone, Mrs. Malone and/or their
children (the Malone Group, and such shares, the Subject Shares) at a per share price of $14.00 payable in cash,
securities or such other form of consideration as to which Mr. Maffei and Mr. Malone might mutually agree. The transfer by
the Malone Group of the Subject Shares was subject to the terms of that certain call agreement, dated February 9, 1998
(the Call Agreement), among our company, as successor-in-interest to the assignee of TCI Mr. Malone and Mrs. Malone,
which provided us with the right to acquire all, but not less than all, of the Subject Shares at a per share price equal to
the lower of (x) the Offer price or (y) 110% of the average closing prices of a share of QRTEA for the 30 consecutive trading
days ending on May 17, 2021 (with the price calculated pursuant to clause (y) equal to $13.62 per share (the Call Price))
(the Call Right). On May 18, 2021, Mr. Malone provided written notice to us of his desire to accept the Offer, subject to the
approval by our board of directors of the transactions contemplated thereby for purposes of Section 203 of the General
Corporation Law of the State of Delaware, pursuant to the terms of the Call Agreement. However, in the event we determined
to exercise the Call Right, Mr. Malone indicated a preference for the payment of the per share price in the form of shares
of QRTEA such that he would continue to hold a substantial investment in our company.

STOCK EXCHANGE AGREEMENT WITH JOHN C. MALONE

On June 2, 2021, we delivered written notice to Mr. Malone to exercise the Call Right and to pay the per share Call Price
required by the Call Agreement in shares of QRTEA. On June 3, 2021, we and the Malone Group entered into a Stock
Exchange Agreement (the Malone Stock Exchange Agreement) to effect the closing of the Call Right exercise, pursuant
to which the Malone Group transferred to us an aggregate of 27,655,931 shares of QRTEB, and in exchange (the Malone
Exchange), we issued to the Malone Group an aggregate of 30,421,522 shares of QRTEA. Under the terms of the Call
Agreement, the aggregate Call Price converts into an equivalent ratio of 1.1 shares of QRTEA for each share of QRTEB
with the aggregate number of shares of QRTEA issued to each member of the Malone Group rounded down to the nearest
whole share.

ARRANGEMENTS WITH GREGORY B. MAFFEI

As a result of the Malone Exchange and in the absence of the negotiated Letter Agreement (defined below) Mr. Maffei
would have had the right to assert that a “Change of Control” (as defined in the 2019 Maffei Employment Agreement), by
and between Liberty Media and Mr. Maffei) with respect to our company had occurred and that Mr. Maffei had “Good Reason”
(as defined in the 2019 Maffei Employment Agreement) to resign from and terminate his employment with our company.
This would have resulted in the acceleration of the vesting of Mr. Maffei’s outstanding and unvested equity-based awards
with respect to our company, our obligation to pay Mr. Maffei certain severance related benefits and our obligation to make a
termination payment to Liberty Media pursuant to that certain Services Agreement, dated as of September 23, 2011,
between us and Liberty Media, as clarified by that certain Letter Agreement, dated as of September 23, 2011, by and
between us and Liberty Media, and as amended by that certain First Amendment to Services Agreement, effective as of
December 13, 2019, by and between us and Liberty Media (the Services Agreement).

8 4 / 2022 PROXY STATEMENT

C ERTA IN RELATIO NSHIP S AN D R E LAT E D PA RT Y T RA NS ACTI ON S

WAIVER LETTER AND AMENDMENT OF 2019 MAFFEI EMPLOYMENT AGREEMENT

On June 3, 2021, we, Liberty Media and Mr. Maffei entered into a Waiver Letter and Amendment of 2019 Maffei Employment
Agreement (the Letter Agreement), pursuant to which, among other things, Mr. Maffei (x) waived his rights to assert that
our exercise of the Call Right, the transactions to be consummated pursuant to the Malone Stock Exchange Agreement or
the resulting reduction in the Malone Group’s voting power with respect to our company (collectively, the Specified Events)
would constitute a “Change in Control” or “Good Reason,” in each case, as defined in the 2019 Maffei Employment
Agreement, with respect to our company, and agreed not to terminate his employment with our company for “Good Reason”
in connection with or arising out of the Option Cancellation (as defined below) or any of the Specified Events, and (y)
consented to the cancellation (the Option Cancellation) of stock option awards to purchase shares of QRTEB that had
been granted to Mr. Maffei on each of December 24, 2014, and March 31, 2015 for 1,137,228 shares at an exercise price
of $16.97 per share, and 197,783 shares at an exercise price of $16.71 per share, respectively. In consideration for the
foregoing, pursuant to the Letter Agreement, (i) Mr. Maffei received a grant of 1,101,321 restricted shares of QRTEB that
are scheduled to vest, subject to Mr. Maffei’s continued employment with our company, in two equal tranches on December 10,
2024 and the fifth anniversary of the grant date, subject to earlier vesting under certain circumstances, and (ii) we agreed
that the portion of the Annual Equity Awards (as defined in the 2019 Maffei Employment Agreement) to be granted by
our company to Mr. Maffei pursuant to Section 4.11 of the 2019 Maffei Employment Agreement for calendar years 2022,
2023 and 2024 shall be granted with respect to QRTEB.

MAFFEI STOCK EXCHANGE AGREEMENT

Also, on June 3, 2021, we and Mr. Maffei also entered into a Stock Exchange Agreement (the Maffei Stock Exchange
Agreement) pursuant to which, among other things: (i) on June 3, 2021, Mr. Maffei transferred to us an aggregate of
5,378,308 shares of QRTEA, and in exchange we issued to Mr. Maffei an equivalent number of shares of QRTEB; (ii) we
agreed that on the terms and subject to the conditions of the Maffei Stock Exchange Agreement, Mr. Maffei, at his option
(during the six-month period following the vesting of the performance-based restricted stock unit award granted to
Mr. Maffei on March 10, 2021), may transfer to us the number of shares of QRTEA actually received by Mr. Maffei upon
vesting of such performance-based restricted stock unit award in exchange for an equivalent number of newly-issued shares
of QRTEB (the Subsequent Exchange); (iii) Mr. Maffei agreed that until December 31, 2024 (the Cap Period), which is
also the end of the current term of his employment as set forth in the 2019 Maffei Employment Agreement, he will not, and
will not authorize or permit any of his affiliates that he controls (Controlled Affiliates) to, acquire or agree to acquire (or
announce publicly an intent to acquire) by purchase or otherwise, beneficial ownership of our voting securities (or direct or
indirect rights or options to acquire any such voting securities) if, after giving effect to any such acquisition of securities,
the aggregate voting power of our voting securities beneficially owned by Mr. Maffei and his Controlled Affiliates would
exceed 20.0% of the voting power of all of the outstanding voting securities (assuming, for purposes of this calculation that
all voting securities beneficially owned by Mr. Maffei which are not outstanding are included in the calculation) (the Cap);
and (iv) the foregoing transactions by which Mr. Maffei and certain of his related persons became an “interested stockholder”
were approved for purposes of Section 203 of the General Corporation Law of the State of Delaware.

The Cap is subject to certain exceptions, including (i) the Subsequent Exchange, (ii) the receipt, exercise or vesting of his
equity compensation awards and (iii) any dividend or other distribution made, or similar action taken, by us (including the
receipt in connection therewith of any rights, warrants or other securities granting the holder the right to acquire voting
securities of our company, and any acquisition of voting securities of our company upon the exercise thereof). However,
if during the Cap Period, the voting power of our outstanding voting securities beneficially owned by Mr. Maffei and his
Controlled Affiliates exceeds the Cap, Mr. Maffei will, and will cause his Controlled Affiliates to, vote his voting securities that
represent voting power in excess of the Cap, in the same proportions as the votes cast by our stockholders unaffiliated
with Mr. Maffei on any matter submitted to a vote of our stockholders. In addition, Mr. Maffei and his Controlled Affiliates may
not transfer voting securities of our company to any other Controlled Affiliate of Mr. Maffei unless such transferee has
agreed to be bound by the terms of the Maffei Stock Exchange Agreement.

On March 25, 2022, we and Mr. Maffei completed the Subsequent Exchange. Pursuant to the terms of the Maffei Stock
Exchange Agreement, at the closing of the Subsequent Exchange, Mr. Maffei transferred to us 229,022 shares of QRTEA
and in exchange we issued to Mr. Maffei an equivalent number of shares of QRTEB.

The foregoing descriptions of the Malone Stock Exchange Agreement, the Maffei Stock Exchange Agreement, the Letter
Agreement and Mr. Maffei’s restricted stock award do not purport to be complete and are subject to, and qualified in their
entirety by, such agreements, which are incorporated by reference herein and filed as Exhibits 10.1, 10.2, 10.3 and 10.4,
respectively, to our Current Report on Form 8-K filed with the SEC on June 4, 2021.

QU RATE R ETA IL , INC.

/ 85

FINANCIAL INFORMATION

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Market Information

Each series of the common stock of Qurate Retail, Inc. ( “Qurate Retail,” the “Company,” “we,” “us” and “our”)
trades on the Nasdaq Global Select Market. Our Series A and Series B common stock trade on the Nasdaq Global Select
Market, under the symbols “QRTEA” and “QRTEB.” Stock price information for securities traded on the Nasdaq Global
Select Market can be found on the Nasdaq’s website at www.nasdaq.com. The following table sets forth the range of high
and low sales prices of shares of our Series B common stock for the years ended December 31, 2021 and 2020. Although
our Series B common stock is traded on the Nasdaq Global Select Market, an established public trading market does not
exist for the stock, as it is not actively traded.

Qurate Retail
Series B (QRTEB)

High

Low

2020
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2021
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

6.04
5.96
28.46
12.00

15.77
17.39
13.74
12.16

2.39
3.32
5.60
6.78

10.40
11.25
10.18
7.07

Holders

As of January 31, 2022, there were 2,244 and 60 record holders of our Series A and Series B Qurate Retail
common stock, respectively. The foregoing numbers of record holders do not include the number of stockholders whose
shares are held nominally by banks, brokerage houses or other institutions, but include each such institution as one
shareholder.

Dividends

On August 21, 2020, Qurate Retail announced that an authorized committee of its Board of Directors had declared
a special dividend (the “Special Dividend”) on each outstanding share of its Series A and Series B common stock consisting
of (i) cash in the amount of $1.50 per common share, for an aggregate cash dividend of approximately $626 million, and
(ii) 0.03 shares of newly issued 8.0% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the
“Preferred Stock”), having an initial liquidation price of $100 per share of Preferred Stock, with cash paid in lieu of
fractional shares. The distribution ratio for the Preferred Stock portion of the Special Dividend was equivalent to $3.00 in
initial liquidation preference per common share, for an aggregate issuance of approximately $1.3 billion aggregate
liquidation preference. The dividend was distributed on September 14, 2020 to holders of record of Qurate Retail’s Series
A and Series B common 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. The Preferred Stock is non-voting, except in limited circumstances as
required by law, and subject to a mandatory redemption on March 15, 2031.

F-1

On November 20, 2020, Qurate Retail announced that an authorized committee of its Board of Directors declared
a special cash dividend in the amount of $1.50 per common share, for an aggregate dividend of approximately $625 million,
payable in cash on December 7, 2020 to stockholders of record of the Company’s Series A and Series B common stock at
the close of business on November 30, 2020.

On November 4, 2021, Qurate Retail announced that its Board of Directors declared a special cash dividend in
the amount of $1.25 per common share for an aggregate cash dividend of approximately $488 million based on shares
outstanding as of October 31, 2021. The dividend was payable on November 22, 2021 to stockholders of record of Qurate
Retail’s Series A and Series B common stock as of the close of business on November 15, 2021.

Aside from the above mentioned dividends, we have not paid any cash dividends on our common stock. Payment
of cash dividends, if any, in the future will be determined by our board of directors in light of our earnings, financial
condition and other relevant considerations. See “Management’s Discussion and Analysis of Financial Condition and
Results of Operation – Liquidity and Capital Resources.”

Securities Authorized for Issuance Under Equity Compensation Plans

Information required by this item is incorporated by reference to our definitive proxy statement for our 2022

Annual Meeting of Stockholders.

Purchases of Equity Securities by the Issuer

Share Repurchase Programs

In May 2019, the board authorized the repurchase of $500 million of Series A or Series B Qurate Retail common
stock. In August 2021, the board authorized the repurchase of $500 million of Series A or Series B Qurate Retail common
stock.

Series A Qurate Retail Common Stock (QRTEA)

Maximum Number

(or Approximate Dollar
Value) of Shares that
Shares Purchased as Part May Yet Be purchased

Total Number of

of Publicly Announced
Plans or Programs

Under the Plans or
Programs

Average
Price Paid per
Share

Total Number

of Shares
Purchased

Period
October 1 - 31, 2021 . . . . . . . .
November 1 - 30, 2021 1 . . . . .
December 1 - 31, 2021 . . . . . .
Total . . . . . . . . . . . . . . . . . . . . .

2,745,588 $
11,479,893 $
6,685,685 $
20,911,166

10.33
9.87
8.11
9.37

2,745,588 $
11,479,893 $
6,685,685 $
20,911,166

660 million
546 million
492 million

(1) Includes 4,083,333 shares repurchased as a result of the physical settlement of financial instruments during
November 2021.

There were no repurchases of Series B Qurate Retail common stock or Preferred Stock during the three months

ended December 31, 2021.

3,539 shares of Series A Qurate Retail common stock and 108 shares of Preferred Stock were surrendered by
certain of our officers and employees to pay withholding taxes and other deductions in connection with the vesting of their
restricted stock during the three months ended December 31, 2021.

F-2

Management's Discussion and Analysis of Financial Condition and Results of Operations

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 consolidated financial statements and the
notes thereto. Additionally, see note 2 in the accompanying consolidated financial statements for an overview of new
accounting standards that we have adopted or that we plan to adopt that have had or may have an impact on our financial
statements.

Overview

We own controlling and non-controlling interests in a broad range of video and online commerce companies. Our
largest businesses and reportable segments are QxH (QVC U.S. and HSN) and QVC International. QVC, Inc. (“QVC”),
which includes QxH and QVC International, 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. Zulily, LLC
(“Zulily”) is an online retailer offering customers a fun and entertaining shopping experience with a fresh selection of new
product styles launched every day, and is a reportable segment. Our “Corporate and other” category includes our
consolidated subsidiary Cornerstone Brands, Inc. (“Cornerstone”), along with various cost and equity method investments.
See discussion below for the entities that were included in Corporate and other in prior periods.

In December 2019, the novel coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China and has
subsequently spread across the globe causing a global pandemic, impacting all countries where Qurate Retail operates. As
a result of the spread of the virus, certain local governmental agencies have imposed travel restrictions, local quarantines
or stay at home restrictions to contain the spread, which has caused a significant disruption to most sectors of the economy.

In response to these stay at home restrictions, QVC has mandated that all employees work from home where
possible and has reduced the number of employees, third parties and visitors who are allowed into its on-site facilities,
such as the studios and fulfillment centers. QVC has implemented increased cleaning protocols, social distancing measures
and temperature screenings for those employees who enter into certain facilities. In some cases, the move to a work from
home arrangement for certain of its employees will be permanent, which has resulted in the reduction of office space. As
a result of these resource constraints, QVC included fewer hours of live programming on some of its secondary channels
and has experienced some delays in shipping at certain fulfillment centers. Due to ongoing staffing issues and labor
shortages, QVC has increased wages and offered incentives, resulting in additional costs to the company. The inability to
control the spread of COVID-19, or the expansion or extension of containment measures, such as stay at home restrictions
could negatively impact our results in the future.

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

Zulily and QVC have seen increased freight surcharges from China due to COVID-19 and have made work

accommodations in its fulfillment centers which has resulted in an increase in labor expense.

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

F-3

closures, labor shortages and other resource constraints. While the future impact is currently uncertain, the inability to
control the spread of COVID-19 could cause any one of these adverse impacts, or combination of adverse impacts, to have
a material impact on our financial results.

Beginning in the second quarter of 2021, QVC saw increased product shortages as a result of high market demand
in some product categories such as home and electronics. QVC also experienced escalating shipping disruptions due to
challenges in the global supply chain and labor market. These factors impacted QVC’s ability to offer certain goods and
ship orders timely to its customers. In addition, QVC began to see increased inflationary pressures during the period. If
these pressures persist, it may result in certain increased costs outpacing its 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 the 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 will be closed for the foreseeable future. QVC has taken steps to mitigate
disruption to operations including diverting inbound orders to its other fulfillment centers and will continue to leverage its
existing fulfillment centers in the near-term. For the year ended December 31, 2021, QVC incurred fire-related costs
including $134 million in loss on inventory, $87 million in loss on fixed assets, and $29 million in other fire-related costs
including $21 million of costs that were not fully reimbursable by QVC”s insurance policies, primarily related to shut-
down pay and severance expense, that were netted with expected insurance recoveries (collectively, "Fire related costs,
net"). While there can be no assurance, based on the provisions of QVC’s insurance policies, and discussions with
insurance carries, QVC has determined that recovery of certain fire-related costs is probable, and an insurance receivable
balance of $129 million, net of $100 million of insurance proceeds received in advance, has been recorded as of
December 31, 2021.

As of the date of this report, QVC is still in the process of assessing damage to property and inventory and
submitting relevant insurance claims. There is approximately $117 million of inventory at the Rocky Mount facility that
is currently being assessed for damage and is included in Inventories in the consolidated balance sheet as of December 31,
2021. QVC anticipates any additional inventory losses will be covered by insurance policies. QVC expects to continue to
record additional costs and recoveries until the property and inventory assessment is completed and the insurance claim is
fully settled. While QVC has started taking steps to minimize the overall impact to the business, QVC expects a negative
impact to net sales as a result of lost inventory as well as increased warehouse and logistics costs in 2022.

Strategies and Challenges

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

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

QVC's future net revenue growth will primarily depend on sales growth from e-commerce, mobile platforms and
applications via streaming video, additions of new customers from households already receiving QVC's broadcast
programming and increased spending from existing customers. QVC's future net revenue may also be affected by (i) the
willingness of cable television and direct-to-home satellite system operators to continue carrying QVC's programming
service; (ii) QVC's ability to maintain favorable channel positioning, which may become more difficult due to
governmental action or from distributors converting analog customers to digital; (iii) changes in television viewing habits

F-4

because of personal video recorders, video-on-demand and Internet video services; (iv) QVC's ability to source new and
compelling products and (v) general economic conditions.

In July 2020, QVC implemented a planned workforce reduction with the goal of making the organizational
structure streamlined and more efficient. As a result, QVC recorded $20 million of severance expense during the year
ended December 31, 2020, which is recorded in selling, general and administrative expense.

The current economic uncertainty in various regions of the world in which our subsidiaries and affiliates operate
could adversely affect demand for their products and services since a substantial portion of their 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 United States (“U.S.”) or other key markets, including Japan and Europe, continue to be
uncertain or deteriorate, 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 businesses’
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 QVC’s expansion into new European and other
markets. The Company is currently unable to predict the extent of any of these potential adverse effects.

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

Zulily. Zulily’s goal is to be part of its customers’ daily routine, allowing them to visit Zulily sites and discover a
selection of fresh, new and affordable merchandise curated for them every morning. Zulily intends to employ the following
strategies to achieve these goals and objectives: (i) acquire new customers; (ii) increase customer loyalty and repeat
purchasing; (iii) add new vendors and strengthen existing vendor relationships; (iv) invest in mobile platform and channels
with which its customers want to engage; and (v) invest in low cost supply chain systems in the U.S. and cross border.

Zulily has limited contractual assurances of continued supply, pricing or access to new products, and vendors
could change the terms upon which they sell to Zulily or discontinue selling to Zulily for future sales at any time. As Zulily
grows, continuing to identify a sufficient number of new emerging brands and smaller boutique vendors may become more
and more of a challenge. If Zulily is not able to identify and effectively promote these new brands, it may lose customers
to competitors. Even if Zulily identifies new vendors, it may not be able to purchase desired merchandise in sufficient
quantities or on acceptable terms in the future, and products from alternative sources, if any, may be of a lesser quality or
more expensive than those from existing vendors. An inability to purchase suitable merchandise on acceptable terms or
to source new vendors could have an adverse effect on Zulily’s business.

To support its large and diverse base of vendors and its flash sales model that requires constantly changing
products, Zulily must incur costs related to its merchandising team, photography studios and creative personnel. As Zulily
grows, it may not be able to continue to expand its product offerings in a cost-effective manner. In addition, the variety in
size and sophistication of Zulily’s vendors presents different challenges to its infrastructure and operations. Zulily’s
emerging brands and smaller boutique vendors may be less experienced in manufacturing and shipping, which may lead
to inconsistencies in quality, delays in the delivery of merchandise or additional fulfillment cost. Zulily’s larger national
brands may impose additional requirements or offer less favorable terms than smaller vendors related to margins and
inventory ownership and risk and may also be unable to ship products timely.

F-5

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 reportable
segments. The "Corporate and other" category consists of our consolidated subsidiary Cornerstone, along with various cost
and equity method investments. For a more detailed discussion and analysis of the financial results of the principal
reporting segments, see "Results of Operations - Businesses" below.

Operating Results

Years ended December 31,

2021

2020

2019

amounts in millions

Revenue

QxH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
QVC International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Zulily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inter-segment eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consolidated Qurate Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

8,277
3,077
1,453
1,238
(1)
14,044

8,505
2,967
1,636
1,070
(1)
14,177

8,277
2,709
1,571
901
—
13,458

Operating Income (Loss)

Consolidated Qurate Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

1,018
489
(469)
49
1,087

1,128
439
(12)
17
1,572

973
354
(1,091)
(52)
184

Adjusted OIBDA

Consolidated Qurate Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

1,439
562
(12)
91
2,080

1,547
510
83
58
2,198

1,536
446
48
(1)
2,029

Revenue. Our consolidated revenue decreased 0.9% and increased 5.3% for the years ended December 31, 2021

and 2020, respectively, as compared to the corresponding prior year periods.

QxH, QVC International and Zulily revenue decreased $228 million, increased $110 million, and decreased $183
million, respectively, during the year ended December 31, 2021, as compared to the same period in the prior year. See
"Results of Operations - Businesses" below for a more complete discussion of the results of operations of QVC and Zulily.
Corporate and other revenue increased $168 million for the year ended December 31, 2021, as compared to the
corresponding period in the prior year due entirely to an increase in revenue at Cornerstone due to strong customer demand
in the home category.

QxH, QVC International and Zulily revenue increased $228 million, $258 million, and $65 million, respectively,
during the year ended December 31, 2020 compared to the same period in the prior year. See "Results of Operations -
Businesses" below for a more complete discussion of the results of operations of QVC and Zulily. Corporate and other
revenue increased $169 million for the year ended December 31, 2020, as compared to the corresponding prior year period
due to an increase in Cornerstone revenue of $169 million as a result of strong customer response in the home category
due to increased demand for home furnishings, interior décor and outdoor living items.

F-6

Operating income (loss). Our consolidated operating income decreased $485 million and increased
$1,388 million for the years ended December 31, 2021 and 2020, respectively, as compared to the corresponding prior year
periods.

Zulily operating losses increased $457 million for the year ended December 31, 2021, as compared to the
corresponding prior year period, primarily due to impairment of intangible assets at Zulily during the fourth quarter of
2021. QxH and QVC International operating income decreased $110 million and increased $50 million, respectively, for
the year ended December 31, 2021, compared to the same period in the prior year. See "Results of Operations - Businesses"
below for a more complete discussion of the results of operations of QVC and Zulily. Operating income for Corporate and
other improved $32 million for the year ended December 31, 2021, as compared to the corresponding period in the prior
year, due to revenue growth across Cornerstone’s portfolio and lower promotional activity resulting in better margin
performance.

Zulily operating losses decreased $1,079 million for the year ended December 31, 2020, as compared to the
corresponding prior year period, primarily due to no impairment of intangible assets at Zulily compared to the impairment
taken in the prior year. QxH and QVC International operating income increased $155 million and $85 million, respectively,
for the year ended December 31, 2020, as compared to the corresponding prior year period. See "Results of Operations -
Businesses" below for a more complete discussion of the results of operations of QVC and Zulily. Operating income for
Corporate and other improved $69 million for the year ended December 31, 2020, as compared to the corresponding prior
year period, primarily due to a reduction in operating losses at Cornerstone as a result of strong home category revenue
and product margin performance.

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, separately reported litigation settlements, transaction
related costs (including restructuring, integration, and advisory fees), impairments and fire related costs. 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. Adjusted OIBDA should be considered in addition to, but not as a substitute for,
operating income, net income, 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.

Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Depreciation and amortization . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . .
Fire related costs, net . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . .
Transaction related costs . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted OIBDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2021

Years ended December 31,
2020
amounts in millions
1,572
562
64
—
—
—
2,198

1,087
537
72
21
363
—
2,080

2019

184
606
71
—
1,167
1
2,029

Consolidated Adjusted OIBDA decreased $118 million and increased $169 million for the years ended

December 31, 2021 and 2020, respectively, as compared to the corresponding prior year periods.

QxH, QVC International, and Zulily Adjusted OIBDA decreased $108 million, increased $52 million, and
decreased $95 million and for the year ended December 31, 2021, respectively, as compared to the corresponding prior
year period. See "Results of Operations - Businesses" below for a more complete discussion of the results of operations of

F-7

QVC and Zulily. Corporate and other Adjusted OIBDA increased $33 million for the year ended December 31, 2021, as
compared to the corresponding period in the prior year due to higher Adjusted OIBDA at Cornerstone due to strong home
category revenue and product margin performance.

QxH, QVC International, and Zulily Adjusted OIBDA increased $11 million, $64 million and $35 million for the
year ended December 31, 2020, respectively, as compared to corresponding prior year period. See "Results of Operations
- Businesses" below for a more complete discussion of the results of operations of QVC and Zulily. Corporate and other
Adjusted OIBDA increased $59 million for the year ended December 31, 2020, as compared to the corresponding period
in the prior year due to higher Adjusted OIBDA at Cornerstone due to strong home category revenue and product margin
performance.

Other Income and Expense

Components of Other Income (Expense) are presented in the table below.

2021

Years ended December 31,
2020
amounts in millions

2019

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Share of earnings (losses) of affiliate, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Realized and unrealized gains (losses) on financial instruments, net . . . . . . . . . . . . . .
Gains (losses) on transactions, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax sharing income (expense) with Liberty Broadband . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other income (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

(468)
(94)
99
10
10
(6)
(449)

(408)
(156)
(110)
224
(39)
(32)
(521)

(374)
(160)
(251)
(1)
(26)
6
(806)

Interest expense. Interest expense increased $60 million and $34 million for the years ended December 31,
2021 and 2020, respectively, as compared to the corresponding prior year periods. The increase for the year ended
December 31, 2021 is due to dividends declared and paid related to our Preferred Stock, recorded through interest expense.
The increase for the year ended December 31, 2020 is due to QVC refinancing its borrowings on its senior secured credit
facility with newly issued senior secured notes, which have higher interest rates, as well as dividends incurred and paid
related to the Preferred Stock during the period, partially offset by lower outstanding debt balances due to repayment of
amounts outstanding on QVC’s senior secured credit facility.

Share of earnings (losses) of affiliates. Share of losses of affiliates decreased $62 million and $4 million during
the years ended December 31, 2021 and 2020, respectively, as compared to the corresponding prior year periods. The
decrease in 2021 is related to the decrease in the Company’s alternative energy entities that have either been sold or are
being wound down as the federal tax credits expire. The decrease of loss in 2020 is due to fewer losses related to the
Company’s alternative energy solutions entities compared to the prior year, almost completely offset by an increase in
share of losses due to an other than temporary impairment of QVC’s China equity method investment. The alternative
energy entities typically operate at a loss, and the Company records its share of such losses, but have favorable tax attributes
and credits, which are recorded in the Company’s tax accounts.

F-8

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:

Years ended December 31,
2020 2019
2021

Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Exchangeable senior debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Indemnification asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1)

amounts in millions
77

(22)
(130) (277) (337)
123
143
25
(15)
99 (110) (251)

(21)
173

The changes in these accounts are due primarily to market factors and changes in the fair value of the underlying
stocks or financial instruments to which these relate. The increase from loss to gain in year ended December 31, 2021 as
compared to the corresponding prior year period was primarily due to a decrease in unrealized losses on the Company’s
exchangeable senior debentures driven by less growth in stock prices of the securities underlying the debentures than the
prior year, an increase in unrealized gains related to derivative instruments which were settled, and an increase from the
unrealized gain related to equity securities, partially offset by an unrealized loss on the indemnification asset from a gain
in 2020. The decrease in losses for the year ended December 31, 2020 as compared to the corresponding prior year period
was primarily driven by a decrease in unrealized losses on the Company’s exchangeable senior debentures driven by less
growth in stock prices of the securities underlying the debentures than the prior year, a decrease in unrealized losses related
to derivative instruments, a decrease in unrealized losses related to equity securities, and an increase in unrealized gains
on the indemnification asset

Gains (losses) on transactions, net. Gains (losses) on transactions, net, decreased $214 million and increased
$225 million for the years ended December 31, 2021 and 2020, respectively, as compared to the corresponding prior year
periods. The change in gains (losses) on transactions, net for the year ended December 31, 2020 is due to the sale of one
of the Company’s alternative energy investments during the third quarter of 2020, as compared to no other transactions
during 2021 or 2019. For the 2020 sale, the Company received total cash consideration of $272 million and recorded a
gain of $224 million on the sale of the alternative energy investment.

Tax sharing income (expense) with Liberty Broadband. The Company has a tax sharing agreement with Liberty
Broadband. As a result, the Company recognized tax sharing income of $10 million for the year ended December 31,
2021, and tax sharing expense of $39 million and $26 million for the years ended December 31, 2020 and 2019,
respectively.

Other, net. Other, net increased $26 million and decreased $38 million for the years ended December 31, 2021
and 2020, respectively, when compared to the corresponding prior year period. The activity captured in Other, net is
primarily attributable to gains (losses) on early extinguishment of debt, foreign exchange gains (losses) and interest income.
The increase in Other, net for the year ended December 31, 2021, as compared to the same period in the prior year, was a
result of no debt retirements with extinguishment gains/(losses) in the year ended December 31, 2021. The decrease in
other, net for the year ended December 31, 2020, as compared to the same period in the prior year, is primarily due to a
loss on extinguishment of debt of $40 million primarily related to the retirement of the QVC 5.125% Senior Secured Notes
due 2022.

Income taxes. The Company had an income tax expense of $217 million, an income tax benefit of $211 million
and income tax benefit of $217 million for the years ended December 31, 2021, 2020 and 2019, respectively. Our effective
tax rate for the years ended December 31, 2021, 2020 and 2019 was 34.0%, 20.1% and 34.9% respectively.

In 2021 the effective tax rate was higher than the U.S. federal tax rate of 21% primarily due to foreign tax expense,
state income tax expense, the impairment of goodwill that is not deductible for tax purposes, and non-deductible interest
expense related to preferred stock, partially offset by benefits from tax credits generated by our alternative energy
investments.

F-9

For the year ended December 31, 2020, the Company recorded an income tax benefit. The 2020 tax benefit was
primarily driven by the impacts of a corporate realignment and tax credits generated by alternative energy investments.
See note 8 to the accompanying consolidated financial statements for more information related to the corporate
realignment.

In 2019 the effective tax rate was higher than the U.S. federal tax of 21% primarily due to tax benefits from tax
credits and incentives generated by our alternative energy investments and tax benefits from losses generated in 2019 that
were eligible for carryback to tax years with federal income tax rates greater than the U.S. statutory tax rate of 21%,
partially offset by a goodwill impairment that is not deductible for tax purposes and an increase in the valuation allowance
against certain deferred tax assets.

Net earnings (loss). We had net earnings of $421 million, $1,262 million, and net losses of $405 million for the
years ended December 31, 2021, 2020 and 2019, respectively. The change in net earnings (loss) was the result of the above-
described fluctuations in our revenue, expenses and other gains and losses.

Liquidity and Capital Resources

As of December 31, 2021 substantially all of our cash and cash equivalents are invested in U.S. Treasury
securities, other government securities or government guaranteed funds, 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, as discussed in note 6
of the accompanying 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 QVC’s bank credit facility it is
able to pay dividends or make other restricted payments if it is not in default on the bank credit facility and its consolidated
leverage ratio is no greater than 4.0 to 1.0. Further, under QVC’s bond indentures and the bank credit facility credit
agreement, unlimited dividends are permitted to service the debt of Qurate Retail so long as there is no default (i.e., no
leverage test is needed). As of December 31, 2021 the Company’s leverage ratio was 2.1.

The Company’s issuer debt credit rating did not change during the year ended December 31, 2021. Qurate Retail

and its subsidiaries are in compliance with their debt covenants as of December 31, 2021.

As of December 31, 2021, Qurate Retail's liquidity position consisted of the following:

Cash and cash
equivalents

amounts in millions

QVC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Zulily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Qurate Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

510
6
71
587

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. Additionally, we have $2.75 billion available
for borrowing under QVC’s bank credit facility at December 31, 2021. As of December 31, 2021, QVC had approximately
$272 million of cash and cash equivalents held in foreign subsidiaries that is available for domestic purposes with no
significant tax consequences upon repatriation to the U.S. QVC accrues taxes on the unremitted earnings of its international
subsidiaries. Approximately 79% of this foreign cash balance was that of QVC Japan. QVC owns 60% of QVC Japan and
shares all profits and losses with the 40% minority interest holder, Mitsui & Co, LTD.

F-10

Additionally, our operating businesses have generated, on average, more than $1 billion in annual cash provided
by operating activities over the prior three years and we do not anticipate any significant reductions in that amount in future
periods.

Cash Flow Information

Years ended December 31,

2021

2020

2019

amounts in millions

2,455
Net cash provided (used) by operating activities . . . . . . . . . . . . . . . $ 1,225
(161)
Net cash provided (used) by investing activities. . . . . . . . . . . . . . . . $ (501)
Net cash provided (used) by financing activities . . . . . . . . . . . . . . . $ (914) (2,181)

1,284
(600)
(661)

During the year ended December 31, 2021, Qurate Retail's primary uses of cash were payments for issuance of
financial instruments of $694 million, payment of cash dividends of $563 million, repurchases of common stock of $365
million, capital expenditures of $244 million, investments in and loans to equity method investments of $202 million and
expenditures for television distribution rights of $187 million, partially offset by net debt borrowings of $443 million,
proceeds from settlements of financial assets of $311 million and proceeds from dispositions of investments of $81 million.

The projected uses of Qurate Retail’s cash in the next year, outside of normal operating expenses (inclusive of tax
payments), are the costs to service outstanding debt, approximately $320 million for estimated interest payments on
outstanding debt, including corporate level and other subsidiary debt, anticipated capital improvement spending of
approximately $290 million, the repayment of certain debt obligations, the potential buyback of common stock under the
approved share buyback program, payment of dividends to the holders of the Preferred Stock, other forms of capital returns
to investors and additional investments in existing or new businesses. The Company also may be required to make net
payments of income tax liabilities to settle items under discussion with tax authorities. The Company expects that cash on
hand and cash provided by operating activities in future periods and outstanding borrowing capacity will be sufficient to
fund projected uses of cash.

Off-Balance Sheet Arrangements and Aggregate Material Cash Requirements

In connection with agreements for the sale of assets by our Company, we may retain liabilities that relate to events
occurring prior to the sale, such as tax, environmental, litigation and employment matters. We generally indemnify the
purchaser in the event that a third party asserts a claim against the purchaser that relates to a liability retained by us. These
types of indemnification obligations may extend for a number of years. We are unable to estimate the maximum potential
liability for these types of indemnification obligations as the sale agreements may not specify a maximum amount and the
amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be
determined at this time. Historically, we have not made any significant indemnification payments under such agreements
and no amount has been accrued in the accompanying consolidated financial statements with respect to these
indemnification obligations.

We have contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course
of business. Although it is reasonably possible we 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 consolidated financial
statements.

F-11

Information concerning the amount and timing of required payments, both accrued and off-balance sheet, under
our material cash requirements, excluding uncertain tax positions as it is undeterminable when payments will be made, is
summarized below.

Payments due by period

Total

Less than
1 year

2 - 3 years
amounts in millions

4 - 5 years

After
5 years

Consolidated material cash requirements
Long-term debt (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Interest payments (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance and operating lease obligations . . . . . . . . . . . . . . .
Preferred Stock (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase orders and other obligations (4) . . . . . . . . . . . . . .

6,883
4,329
651
2,197
3,594
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,654

321
107
101
3,524
4,056

1,356
627
181
202
54
2,420

1,087
513
133
202
12
1,947

4,437
2,868
230
1,692
4
9,231

(1) Amounts are reflected in the table at the outstanding principal amount, assuming the debt instruments will
remain outstanding until the stated maturity date, and may differ from the amounts stated in our consolidated
balance sheet to the extent debt instruments (i) were issued at a discount or premium or (ii) have elements
which are reported at fair value in our consolidated balance sheets. Amounts do not assume additional
borrowings or refinancings of existing debt.

(2) Amounts (i) are based on our outstanding debt at December 31, 2021, (ii) assume the interest rates on our
variable rate debt remain constant at the December 31, 2021 rates and (iii) assume that our existing debt is
repaid at maturity.

(3) This amount reflects the annual 8.0% dividend on shares of Preferred Stock outstanding as of December 31,

2021 and redemption of the Preferred Stock on March 15, 2031.

(4) Amounts include open purchase orders for inventory and non-inventory purchases along with other material

cash requirements.

Critical Accounting Estimates

The preparation of our financial statements in conformity with GAAP requires us 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. Listed below are the accounting estimates that we believe
are critical to our financial statements due to the degree of uncertainty regarding the estimates or assumptions involved
and the magnitude of the asset, liability, revenue or expense being reported. All of these accounting estimates and
assumptions, as well as the resulting impact to our financial statements, have been discussed with the audit committee of
our board of directors.

Fair Value Measurements of Non-Financial Instruments. Our non-financial instrument valuations are primarily
comprised of our annual assessment of the recoverability of our goodwill and other nonamortizable intangible assets, such
as tradenames and our evaluation of the recoverability of our other long-lived assets upon certain triggering events, and
our determination of the estimated fair value allocation of net tangible and identifiable intangible assets acquired in
business combinations. If the carrying value of our long-lived assets exceeds their undiscounted cash flows, we are required
to write the carrying value down to fair value. Any such write down is included in impairment of long-lived assets in our
consolidated statements of operations. A high degree of judgment is required to estimate the fair value of our long-lived
assets. We may use quoted market prices, prices for similar assets, present value techniques and other valuation techniques
to prepare these estimates. We may need to make estimates of future cash flows and discount rates as well as other
assumptions in order to implement these valuation techniques. Due to the high degree of judgment involved in our
estimation techniques, any value ultimately derived from our long-lived assets may differ from our estimate of fair value.

F-12

As each of our operating segments has long-lived assets, this critical accounting policy affects the financial position and
results of operations of each segment.

As of December 31, 2021, the intangible assets not subject to amortization for each of our significant reportable

segments were as follows:

Goodwill

Tradenames
amounts in millions
2,878
—
160
—
3,038

5,228
855
244
12
6,339

Total

8,106
855
404
12
9,377

We perform our annual assessment of the recoverability of our goodwill and other non-amortizable intangible
assets during the fourth quarter of each year, or more frequently, if events or circumstances indicate impairment may have
occurred. We utilize a qualitative assessment for determining whether a quantitative goodwill and other non-amortizable
intangible asset impairment analysis is necessary. The accounting guidance permits entities to first assess qualitative
factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount
as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. In evaluating
goodwill on a qualitative basis the Company reviews the business performance of each reporting unit and evaluates other
relevant factors as identified in the relevant accounting guidance to determine whether it is more likely than not that an
indicated impairment exists for any of our reporting units. The Company considers whether there are any negative
macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing
business, management challenges, the legal environments and how these factors might impact company specific
performance in future periods. As part of the analysis the Company also considers fair value determinations for certain
reporting units that have been made at various points throughout the current and prior years for other purposes. In 2021
and 2019, impairments of $233 million and $440 million were recorded to Zulily’s goodwill, respectively. There were no
goodwill impairments in 2020. In 2021 and 2019, impairments of $130 million and $580 million were recorded to Zulily’s
tradename, respectively. Also in 2019, an impairment of $147 million was recorded to HSN’s tradenames. There were no
impairments of other intangible assets in 2020.

Retail Related Adjustments and Allowances. QVC records adjustments and allowances for sales returns,
inventory obsolescence and uncollectible receivables. Each of these adjustments is estimated based on historical
experience. Sales returns are calculated as a percent of sales and are netted against revenue in its consolidated statements
of operations. For the years ended December 31, 2021, 2020 and 2019, sales returns represented 15.3%, 15.6% and 17.3%
of QVC's gross product revenue, respectively. The inventory obsolescence reserve is calculated as a percent of QVC's
inventory at the end of a reporting period based on, among other factors, the aging of its inventory balance, the likely
method of disposition, and the estimated recoverable values based on historical experience of inventory markdowns and
liquidation. The change in the reserve is included in cost of goods sold in the consolidated statements of operations. As of
December 31, 2021, QVC's inventory was $1,355 million, which was net of the obsolescence reserve of $122 million. As
of December 31, 2020, inventory was $1,119 million, which was net of the obsolescence reserve of $170 million. QVC's
allowance for credit losses is calculated as a percent of accounts receivable at the end of a reporting period, and is based
on historical experience, with the change in such allowance recorded as a provision for credit losses in selling, general,
and administrative (“SG&A”) expenses in the consolidated statements of operations. Trade accounts receivable (including
installment payment, credit card and customer receivables) were $1,521 million and $1,630 million, as of December 31,
2021 and 2020, respectively. Allowance for credit losses related to uncollectible trade accounts receivable was $86 million
and $108 million as of December 31, 2021 and 2020, respectively. Each of these estimates requires management judgment
and may not reflect actual results.

Income Taxes. We are required to estimate the amount of tax payable or refundable for the current year and
the deferred income tax liabilities and assets for the future tax consequences of events that have been reflected in our
financial statements or tax returns for each taxing jurisdiction in which we operate. This process requires our management

F-13

to make judgments regarding the timing and probability of the ultimate tax impact of the various agreements and
transactions that we enter into. Based on these judgments we may record tax reserves or adjustments to valuation
allowances on deferred tax assets to reflect the expected realizability of future tax benefits. Actual income taxes could vary
from these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate,
our inability to generate sufficient future taxable income or unpredicted results from the final determination of each year's
liability by taxing authorities. These changes could have a significant impact on our financial position.

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 broadcast across
multiple channels nationally on a full-time basis, including QVC, QVC2, QVC3, HSN, and HSN2. The Company's U.S.
programming is also available on QVC.com and HSN.com, QVC's "U.S. websites"; virtual multichannel video
programming distributors (including Hulu + Live TV, AT&T TV and YouTube TV); applications via streaming video;
Facebook Live, Roku, Apple TV, Amazon Fire, Xfinity Flex and Samsung TV Plus; mobile applications; social pages and
over-the-air broadcasters.

QVC's digital platforms enable consumers to purchase goods offered on its broadcast programming, along with a
wide assortment of products that are available only on its U.S. websites. QVC.com and its other digital platforms (including
its mobile applications, social 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.

Internationally, QVC's televised shopping programs, including live and recorded content, are distributed to
households outside of the U.S., primarily in Germany, Austria, Japan, the United Kingdom ("U.K."), the Republic of
Ireland, and Italy. In some of the countries where QVC operates, QVC's televised shopping programs are broadcast 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
pages. QVC's international business employs product sourcing teams who select products tailored to the interests of each
local market.

QVC's operating results were as follows:

Years ended December 31,

2021

2020

2019

amounts in millions

Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,354 11,472 10,986
(7,368) (7,418) (7,148)
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(768)
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SG&A expenses (excluding stock-based compensation and
(1,194) (1,211) (1,088)
transaction related costs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,982
2,057
2,001
Adjusted OIBDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
(21)
Fire related costs, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(147)
—
—
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(39)
(37)
(44)
(468)
(453)
(429)
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1)
—
—
Transaction related costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,327
1,567
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,507

(786)

(791)

F-14

Net revenue was generated from the following geographical areas:

Years ended December 31,
2020
2021

2019

amounts in millions

QxH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,277
3,077
QVC International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,277
2,709
$ 11,354 11,472 10,986

8,505
2,967

QVC's consolidated net revenue decreased 1.0% and increased 4.4% for the years ended December 31, 2021 and
2020, respectively, as compared to the corresponding prior years. The 2021 decrease of $118 million in net revenue was
primarily due to a 1.3% decrease in units sold, driven by QxH, a decline of 0.8% in average selling price per unit ("ASP"),
primarily driven by QxH, and a decrease of $18 million in shipping and handling revenue across both segments. These
declines were partially offset by an $84 million decrease in estimated product returns, primarily driven by QxH, and $57
million in favorable foreign exchange rates.

The 2020 increase of $486 million in net revenue was primarily comprised of a 2.6% increase in units sold, a
$172 million decrease in estimated product returns, primarily driven by QxH, a $22 million increase in shipping and
handling revenue across both segments and $54 million in favorable foreign exchange rates, which was partially offset by
a slight decline in average selling price per unit ("ASP").

During the years ended December 31, 2021 and 2020, the changes in revenue and expenses were affected by
changes in the exchange rates for the Japanese Yen, the Euro and the U.K. Pound Sterling. In the event the U.S. Dollar
strengthens against these foreign currencies in the future, QVC's revenue and operating cash flow will be negatively
affected.

In discussing 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. Throughout this discussion, we refer to the results of this calculation as
the impact of currency exchange rate fluctuations. When we refer to “constant currency operating results”, this means
operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency
amounts or results permits investors to understand better QVC’s underlying performance without the effects of currency
exchange rate fluctuations.

The percentage change in net revenue for QVC in U.S. Dollars and in constant currency was as follows:

Year ended December 31, 2021

Year ended December 31, 2020

U.S. dollars

Foreign
Currency
Exchange
Impact

Constant currency U.S. dollars

Foreign
Currency
Exchange
Impact

QxH . . . . . . . . . . . . .
QVC International . .

(2.7) %
3.7 %

— %
1.9 %

(2.7)%
1.8 %

2.8 %
9.5 %

Constant currency
2.8 %
7.5 %

— %
2.0 %

In 2021, the QxH net revenue decrease was primarily due to a 1.4% decrease in units shipped, a 1.7% decline in
ASP and a $12 million decrease in shipping and handling revenue, partially offset by a $60 million decrease in estimated
product returns. For the year ended December 31, 2021, QxH experienced shipped sales growth in apparel and accessories
with declines in all other categories. The decrease in estimated product returns was primarily driven by a decrease in sales
volume partially offset by a shift in product mix to higher return rate categories. QVC-International net revenue growth in
constant currency was primarily due to a 1.8% increase in ASP, driven by ASP increases in Japan and the U.K., and a $24
million decrease in estimated product returns driven by Germany. These increases were partially offset by a 0.9% decrease

F-15

in units shipped. QVC-International experienced shipped sales growth in constant currency in all categories except
electronics and beauty.

In 2020, the QxH net revenue increase was primarily due to a 1.8% increase in units shipped, a $171 million
decrease in estimated product returns and a $7 million increase in shipping and handling revenue, partially offset by a 1.3%
decline in ASP. For the year ended December 31, 2020, QxH experienced shipped sales growth in home and accessories
with declines in all other categories. The decrease in estimated product returns was primarily driven by a shift in product
mix to lower return rate categories, partially offset by an increase in sales volume. The increase in shipping and handling
revenue was primarily driven by the increase in units shipped and fewer promotional offers. QVC-International net revenue
growth in constant currency was primarily due to a 4.6% increase in units shipped, driven by increases in units shipped
across all markets, a 1.5% increase in ASP, driven by ASP increases in Germany and the U.K. and a $15 million increase
in shipping and handling revenue driven by increases in all markets except Italy, primarily due to the increase in units
shipped. QVC-International experienced shipped sales growth in constant currency in home, beauty and electronics with
declines in all other categories.

QVC's cost of goods sold as a percentage of net revenue was 64.9%, 64.7% and 65.1% for the years ended
December 31, 2021, 2020 and 2019, respectively. The increase in cost of goods sold as a percentage of revenue in 2021 is
primarily due to increased warehouse expenses driven by higher wages due to labor shortages and increased freight costs
at QxH. These increases were partially offset by decreased obsolescence as a result of less aged inventory at QxH and
product margin favorability. Product margin favorability was primarily driven by QVC-International, partially offset by
margin pressure at QxH. For 2020, the decrease in cost of goods sold as a percentage of revenue in 2020 is primarily due
strategic promotional and pricing initiatives, which decreased product costs as a percentage of net revenue across both
segments and favorable estimated product returns at QxH, which was partially offset by increased fulfillment costs at QxH,
primarily related to increased freight charges.

QVC’s operating expenses are principally comprised of commissions, order processing and customer service
expenses, credit card processing fees, and telecommunications expenses. Operating expenses increased $5 million or 1%
and $18 million or 2% for the years ended December 31, 2021 and 2020, respectively, as compared to the prior years. The
increase in 2021 was primarily due to a $9 million increase in customer service expenses, driven by QxH, due to higher
labor costs. This increase was partially offset by a decrease in commissions and credit card fees primarily due to lower
sales volume at QxH. The increase in 2020 was primarily due to a $15 million increase in customer service expenses,
primarily at QxH, a $6 million increase in credit card fees at across both segments, and a $5 million increase due to
unfavorable exchange rates partially offset by a $6 million decrease in commissions, primarily at QxH. The increase in
customer service expenses is primarily driven by increased call volume during the year. The increase in credit card fees is
primarily due to increased sales and lower sales penetration of QVC’s U.S. Private Label Credit Cards, which do not charge
credit card fees. The decrease in commissions is primarily due to increased digital penetration.

QVC’s SG&A expenses (excluding transaction related costs as defined below and stock-based compensation)
include personnel, information technology, provision for credit losses, production costs and marketing and advertising
expense. Such expenses decreased $17 million, and were 10.5% of net revenue for the year ended December 31, 2021 as
compared to the prior year and increased $123 million to 10.6% of net revenue for the year ended December 31, 2020 as
compared to the prior year.

The decrease in 2021 was primarily due to a $74 million decrease in personnel costs across both segments and a
$39 million decrease in estimated credit losses primarily at QxH. These decreases were partially offset by an $80 million
increase in marketing primarily at QxH, a $9 million increase due to unfavorable exchange rates, and an increase in IT
expenses. The decrease related to personnel costs was primarily driven by a decrease to QVC’s incentive pay across both
segments. The decrease to estimated credit losses was due to lower loss rates in the current year, a favorable shift in product
category mix and favorable adjustments of prior periods based on actual collections. The increase in marketing costs in
2021 was driven by greater investment in advertising in addition to the increasing cost of digital marketing.

The increase in 2020 was primarily due to a $111 million increase in personnel costs across both segments, a $53
million increase in online marketing primarily at QxH and $7 million in unfavorable exchange rates. These increases were
partially offset by a $34 million decrease in estimated credit losses primarily at QxH, a $14 million decline in outside

F-16

services primarily at QxH and a $10 million decrease in travel expenses across both segments. The increase related to
personnel costs was primarily due to an increase to QVC’s estimated incentive pay across both segments, and a work from
home allowance as a result of COVID-19, which was partially offset by the closure of QVC’s operations in France in 2019.
The decrease to estimated credit losses was due to favorable adjustments based on actual collections, a decrease in the
number of installment counts taken by customers, the implementation of fraud screening and a favorable shift in product
category mix. The decrease in travel expenses was primarily due to less travel as a result of COVID-19.

Fire related costs, net includes expenses related to the Rocky Mount fulfillment center fire net of expected and
received insurance recoveries. QVC recorded $21 million of fire related costs, net for the year ended December 31, 2021
including losses on inventory and fixed assets that were offset by insurance recoveries, as well as costs that were not fully
reimbursable by QVC's insurance policies primarily related to shut-down pay and severance expense.

There was no impairment loss recorded by QVC for the years ended December 31, 2021 and 2020. QVC recorded
an impairment loss of $147 million for the year ended December 31, 2019 related to the decrease in the fair value of the
HSN indefinite-lived tradename as a result of the quantitative assessment that was performed by the Company (see note 5
to the accompanying consolidated financial statements).

There were no transaction related costs recorded by QVC for the years ended December 31, 2021 and 2020. QVC

recorded $1 million of transaction related costs for the year ended December 31, 2019.

Stock-based compensation includes compensation related to options and restricted stock granted to certain
officers and employees. QVC recorded $44 million, $37 million and $39 million of stock-based compensation expense for
the years ended December 31, 2021, 2020 and 2019, respectively. The increase in 2021 was primarily due to fewer
cancellations of restricted stock awards and the issuance of awards to certain officers. There was no significant change for
2020.

Depreciation and amortization decreased $24 million and $15 million for the years ended December 31, 2021 and
December 31, 2020, respectively, as compared to the corresponding prior years. Depreciation and amortization included
$62 million, $66 million and $66 million of acquisition related amortization during the years ended December 31, 2021,
2020, and 2019, respectively. For the year ended December 31, 2021, property and equipment depreciation decreased
primarily due to the sale of QVC’s Lancaster and San Antonio facilities during 2021. The increase in software amortization
for the year ended December 31, 2021 is due to software additions including QVC's new Enterprise Resource Planning
(“ERP”) system. The decrease in channel placement amortization and related expenses for the year ended December 31,
2021 was due to lower subscriber counts. For the year ended December 31, 2020, property and equipment depreciation
decreased primarily due to the disposition of assets in France in 2019.

Zulily

Zulily's operating results for the last three years were as follows:

2021

Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SG&A expenses (excluding stock-based compensation and

transaction related costs) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted OIBDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . .
Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

F-17

Years ended December 31,
2020
amounts in millions
1,636
(1,228)
(44)

1,453
(1,128)
(39)

(298)
(12)
(13)
(81)
(363)
(469)

(281)
83
(15)
(80)
—
(12)

2019

1,571
(1,179)
(42)

(302)
48
(15)
(104)
(1,020)
(1,091)

Net revenue consists primarily of sales of women's, children's and men's apparel, children's merchandise and other
product categories such as home, accessories and beauty products. Zulily recognizes product sales at the time all revenue
recognition criteria has been met, which is generally at shipment. Net revenue represents the sales of these items plus
shipping and handling charges to customers and private label credit card income, net of estimated refunds and returns,
store credits, and promotional discounts. Net revenue is primarily driven by Zulily’s active customers, the frequency with
which customers purchase and average order value.

Zulily's consolidated net revenue decreased 11.2% and increased 4.1% for the years ended December 31, 2021
and December 31, 2020, respectively, as compared to the corresponding prior years. The decrease in net revenue for the
year ended December 31, 2021 was primarily attributed to a 15.3% decrease in total units shipped resulting from an 18.1%
decrease in active customers, predominately driven by product scarcity, higher ad costs in online channels, and reduction
in marketing spend. This is partially offset by a 5.8% increase in average sale price primarily to offset shipping costs. The
increase in net revenue for the year ended December 31, 2020 was primarily attributed to increases of 4.3% in average sale
price and 0.2% in total units shipped driven by increased demand for online shopping and Zulily’s merchandise as a result
of stay-at-home orders and the temporary closure of brick-and-mortar retail due to COVID-19.

Zulily's cost of goods sold as a percentage of net revenue was 77.6%, 75.1% and 75.0% for the years ended
December 31, 2021, 2020 and 2019, respectively. Cost of goods sold as a percentage of net revenue increased for the years
ended December 31, 2021 and December 31, 2020, as compared to the corresponding prior years primarily due to higher
shipping costs and increased wages in the fulfilment centers, partially offset by favorable product margin.

Zulily’s operating expenses are principally comprised of credit card processing fees and customer service
expenses. Operating expenses decreased for the year ended December 31, 2021, as compared to the same period in the
prior year, driven by decreased sales volumes. Operating expenses increased for the year ended December 31, 2020, as
compared to the same period in the prior year, driven by increased sales volumes.

Zulily’s SG&A expenses include personnel related costs for general corporate functions, marketing and
advertising expenses and information technology. As a percentage of net revenue, SG&A increased from 17.2% to 20.5%
for the year ended December 31, 2021 as compared to the year ended December 31, 2020, primarily due to sales
deleverage, coupled with the prior year’s recognition of a $10 million reversal in a sales tax accrual which was originally
recorded at the acquisition date. As a percentage of net revenue, SG&A decreased from 19.2% to 17.2% for the year ended
December 31, 2020 as compared to the year ended December 31, 2019, primarily due to lower marketing spending and
more leverage attributable to the increase in sales, coupled with the recognition of a $10 million reversal in a sales tax
accrual which was originally recorded at the acquisition date.

Zulily’s stock-based compensation expense decreased 13.3% for the year ended December 31, 2021 as compared
to the corresponding period in the prior year. Zulily’s stock-based compensation expense remained flat for the year ended
December 31, 2020, compared to the corresponding period in the prior year.

Zulily’s depreciation and amortization expense remained flat for the year ended December 31, 2021 compared to
the corresponding period in the prior year. Zulily’s depreciation and amortization expense decreased by $24 million for
the year ended December 31, 2020, as compared to the corresponding period in the prior year primarily related to the
amortization of Zulily’s customer relationship asset following a utilization pattern assuming greater benefit earlier in the
customer relationship life.

For discussion of the impairment of intangible assets in 2021 and 2019, see note 5 of the accompanying

consolidated financial statements.

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

F-18

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 December 31, 2021, our debt is comprised of the following amounts:

Variable rate debt

Fixed rate debt

Principal
Weighted avg
amount interest rate amount

Principal

Weighted avg
interest rate

QxH and QVC International (1) . . . . . . . . $
Corporate and other . . . . . . . . . . . . . . . . . . $

356
—

dollar amounts in millions
1.5 % $ 4,575
— % $ 1,952

5.0 %
5.3 %

(1) Includes $151 million of Zulily’s outstanding borrowings under QVC’s bank credit facilities as of

December 31, 2021. See Note 6 for further detail related to QVC’s bank credit facilities.

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 year ended December 31, 2021 would have been impacted by approximately $6 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 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.

Financial Statements and Supplementary Data.

The consolidated financial statements of Qurate Retail are included herein, beginning on page F-25.

F-19

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Controls and Procedures.

Disclosure Controls and Procedures

In accordance with Rules 13a-15 and 15d-15 of the Securities and 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 Executives concluded that the Company's disclosure controls and procedures were effective as of
December 31, 2021 to provide reasonable assurance that information required to be disclosed in its reports filed or
submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in
the Securities and Exchange Commission’s rules and forms.

Changes in Internal Control Over Financial Reporting

There has been no change in the Company’s internal control over financial reporting that occurred during the
Company’s quarter ended December 31, 2021, that has materially affected, or is reasonably likely to materially affect, the
Company’s internal control over financial reporting.

Management’s Report on Internal Control Over Financial Reporting

See page F-21 for Management's Report on Internal Control Over Financial Reporting.

See page F-22 for KPMG LLP’s report regarding the effectiveness of the Company’s internal control over

financial reporting.

Other Information.

None.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not Applicable.

F-20

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management of the Company is responsible for establishing and maintaining adequate internal control over the
Company’s financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. The Company’s internal
control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with GAAP. Because of inherent
limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

The Company’s management assessed the effectiveness of internal control over financial reporting as of
December 31, 2021, using the criteria in Internal Control-Integrated Framework (2013), issued by the Committee of
Sponsoring Organizations of the Treadway Commission. Based on this assessment, management has concluded that, as of
December 31, 2021, the Company’s internal control over financial reporting is effective.

The Company’s independent registered public accounting firm that audited the consolidated financial statements
and related notes in the Annual Report has issued an audit report on the Company’s internal control over financial reporting.
Their report appears on page F-22 of this Annual Report.

F-21

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors
Qurate Retail, Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited Qurate Retail, Inc. and subsidiaries' (the Company) internal control over financial reporting as of
December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all
material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established
in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2021 and 2020, the related
consolidated statements of operations, comprehensive earnings (loss), cash flows, and equity for each of the years in the
three-year period ended December 31, 2021, and the related notes (collectively, the consolidated financial statements), and
our report dated February 25, 2022 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s
Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal
control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained
in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of
internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such
other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis
for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in accordance with authorizations of management
and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial
statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Denver, Colorado
February 25, 2022

/s/ KPMG LLP

F-22

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors
Qurate Retail, Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Qurate Retail, Inc. and subsidiaries (the Company) as
of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive earnings (loss), cash
flows, and equity for each of the years in the three-year period ended December 31, 2021, and the related notes
(collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in
all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its
operations and its cash flows for each of the years in the three-year period ended December 31, 2021, in conformity with
U.S. generally accepted accounting principles.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to
express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm
registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial
statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts
or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging,
subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on
the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below,
providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Sufficiency of audit evidence over revenue

As discussed in note 2 to the consolidated financial statements, and disclosed in the consolidated statements of
operations, the Company generated $14,044 million of revenue for the year ended December 31, 2021, of which
$8,277 million related to QxH, $3,077 million related to QVC International, $1,453 million related to Zulily, and
$1,237 million related to corporate and other revenue. The processing of these revenue streams is reliant upon multiple
information technology (IT) systems and the IT systems differ between revenue streams.

We identified the evaluation of the sufficiency of audit evidence over revenue as a critical audit matter. Evaluating
the sufficiency of audit evidence required subjective auditor judgment due to the number of revenue streams and the
highly automated nature of certain processes to record revenue that involve interfacing significant volumes of data
across multiple IT systems. The complexity of the IT environment required the involvement of IT professionals with
specialized skills and knowledge.

F-23

The following are the primary procedures we performed to address this critical audit matter. We applied auditor
judgment to determine the nature and extent of procedures to be performed over the processing and recording of
revenue, including the IT systems tested. We evaluated the design and tested the operating effectiveness of certain
internal controls related to the processing and recording of revenue. We involved IT professionals with specialized
skills and knowledge who assisted in testing certain general IT, manual, and automated internal controls over the IT
systems used for the processing and recording of revenue, as well as certain internal controls to reconcile information
produced by the various systems to the Company’s general ledger. For certain revenue streams, we assessed the
revenue recorded by comparing cash receipts, adjusted for reconciling items, to the revenue recorded in the general
ledger. For certain revenue streams, we selected transactions and compared the amounts recognized for consistency
with underlying documentation, including evidence of contracts with customers. We evaluated the sufficiency of audit
evidence obtained over revenue by assessing the results of procedures performed, including the appropriateness of
such evidence.

/s/ KPMG LLP

We have served as the Company’s auditor since 1995.

Denver, Colorado
February 25, 2022

F-24

QURATE RETAIL, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2021 and 2020

Assets
Current assets:

2021

2020

amounts in millions

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Trade and other receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventory, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Indemnification agreement receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

587
1,679
1,623
324
235
4,448

806
1,640
1,301
345
473
4,565

Property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,601
(1,524)
1,077

2,989
(1,689)
1,300

Intangible assets not subject to amortization (note 5):
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tradenames . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,339
3,038
9,377
745
Intangible assets subject to amortization, net (note 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets, at cost, net of accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
602
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,249

6,638
3,168
9,806
779
549
16,999

(continued)

F-25

QURATE RETAIL, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (Continued)

December 31, 2021 and 2020

2021

2020
amounts in millions

Liabilities and Equity
Current liabilities:

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,429
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,236
Current portion of debt, including $1,315 million and $1,750 million measured at fair value
(note 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt (note 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income tax liabilities (note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preferred stock (note 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
Stockholders' equity (note 9):

1,315
244
4,224
5,674
1,353
1,261
707
13,219

Series A Qurate Retail common stock, $.01 par value. Authorized 4,000,000,000 shares;
issued and outstanding 371,132,684 shares at December 31, 2021 and 382,165,550 shares at
December 31, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Series B Qurate Retail common stock, $.01 par value. Authorized 150,000,000 shares;
issued and outstanding 8,163,190 shares at December 31, 2021 and 29,366,492 shares at
December 31, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive earnings (loss), net of taxes . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests in equity of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commitments and contingencies (note 14)
Total liabilities and equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,249

—
—
(79)
2,969
2,894
136
3,030

1,305
1,418

1,750
231
4,704
5,186
1,359
1,249
768
13,266

—
—
72
3,522
3,598
135
3,733

16,999

See accompanying notes to consolidated financial statements.

F-26

QURATE RETAIL, INC. AND SUBSIDIARIES

Consolidated Statements Of Operations

Years ended December 31, 2021, 2020 and 2019

2021

2020
amounts in millions,
except per share amounts

2019

Total revenue, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Operating costs and expenses:

14,044

14,177

13,458

Cost of retail sales (exclusive of depreciation shown separately below) . . . . . . . . . . . . . . . . . . . . . . . . .
Operating expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative, including stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets and long lived assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fire related costs, net (note 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (expense):

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share of earnings (losses) of affiliates, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Realized and unrealized gains (losses) on financial instruments, net (note 4) . . . . . . . . . . . . . . . . . . . . .
Gains (losses) on transactions, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax sharing income (expense) with Liberty Broadband . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Earnings (loss) from continuing operations before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax (expense) benefit (note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less net earnings (loss) attributable to the noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net earnings (loss) attributable to Qurate Retail, Inc. shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

9,231
875
1,930
363
21
537
12,957
1,087

(468)
(94)
99
10
10
(6)
(449)
638
(217)
421
81
340

9,291
867
1,885
—
—
562
12,605
1,572

(408)
(156)
(110)
224
(39)
(32)
(521)
1,051
211
1,262
58
1,204

8,899
844
1,758
1,167
—
606
13,274
184

(374)
(160)
(251)
(1)
(26)
6
(806)
(622)
217
(405)
51
(456)

Basic net earnings (loss) attributable to Qurate Retail, Inc. shareholders per common share (note 2): . . . . . $
Diluted net earnings (loss) attributable to Qurate Retail, Inc. shareholders per common share (note 2): . . . $

0.84
0.82

2.89
2.86

(1.08)
(1.08)

See accompanying notes to consolidated financial statements.

F-27

QURATE RETAIL, INC. AND SUBSIDIARIES

Consolidated Statements Of Comprehensive Earnings (Loss)

Years ended December 31, 2021, 2020 and 2019

2021

2020 2019

amounts in millions

Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 421 1,262
Other comprehensive earnings (loss), net of taxes:

118
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition of previously unrealized losses (gains) on debt, net . . . . . . . . . . . . . . . . . . . .
(1)
Comprehensive earnings (loss) attributable to debt credit risk adjustments (note 13) . . . . .
17
Other comprehensive earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
134
256 1,396
Comprehensive earnings (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less comprehensive earnings (loss) attributable to the noncontrolling interests . . . . . . . . .
65
Comprehensive earnings (loss) attributable to Qurate Retail, Inc. shareholders . . . . . . . . . $ 189 1,331

(128)
(1)
(36)
(165)

(405)

1
(1)
1
1
(404)
52
(456)

See accompanying notes to consolidated financial statements.

F-28

QURATE RETAIL, INC. AND SUBSIDIARIES

Consolidated Statements Of Cash Flows

Years ended December 31, 2021, 2020 and 2019

Cash flows from operating activities:

Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to reconcile net earnings to net cash provided by operating activities:

421

1,262

(405)

2021

2020

2019

amounts in millions
(See note 3)

Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncash interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share of (earnings) losses of affiliates, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Realized and unrealized (gains) losses on financial instruments, net . . . . . . . . . . . . . . . . . . .
(Gains) losses on transactions, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Gains) losses on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other noncash charges (credits), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance proceeds received for inventory loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in operating assets and liabilities

Decrease (increase) in accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease (increase) in inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease (increase) in prepaid expenses and other assets . . . . . . . . . . . . . . . . . . . . . . . . . .
(Decrease) increase in trade accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Decrease) increase in accrued and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided (used) by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cash flows from investing activities:

Cash proceeds from dispositions of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment in and loans to cost and equity investees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditures for television distribution rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other investing activities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided (used) by investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cash flows from financing activities:

Borrowings of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repayments of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repurchases of Qurate Retail common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Withholding taxes on net share settlements of stock-based compensation . . . . . . . . . . . . . . . . .
Payments for issuances of financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from settlements of financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid to common shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financing activities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided (used) by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash . . . . . . .
Net increase (decrease) in cash, cash equivalents and restricted cash . . . . . . . . . . . . . . . . .
Cash, cash equivalents and restricted cash at beginning of period . . . . . . . . . . . . . . . . . . . .
Cash, cash equivalents and restricted cash at end of period . . . . . . . . . . . . . . . . . . . . . . . . .

537
363
72
10
94
(99)
(10)
1
(4)
22
100

27
(440)
76
147
(92)
1,225

81
(202)
(244)
(187)
54
(3)
(501)

1,037
(594)
(365)
(29)
(694)
311
(60)
(503)
(17)
(914)
(28)
(218)
814
596

See accompanying notes to consolidated financial statements.

562
—
64
7
156
110
(224)
40
(356)
8
—

232
133
39
185
237
2,455

271
(119)
(257)
(56)
—
—
(161)

1,300
(2,079)
(70)
(7)
(69)
79
(62)
(1,251)
(22)
(2,181)
20
133
681
814

606
1,167
71
5
160
251
1
(1)
(243)
9
—

(18)
62
15
(122)
(274)
1,284

—
(141)
(325)
(134)
—
—
(600)

3,161
(3,274)
(392)
(7)
(100)
16
(40)
—
(25)
(661)
(2)
21
660
681

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S

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2021, 2020 and 2019

(1) Basis of Presentation

The accompanying consolidated financial statements include the accounts of Qurate Retail, Inc. (or “Liberty”)
and its controlled subsidiaries (collectively, "Qurate Retail," the "Company," “we,” “us,” and “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. (“Cornerstone”), Zulily, LLC (“Zulily”), and other cost and equity method investments, and is primarily
engaged in the video and online commerce industries in North America, Europe and Asia.

Qurate Retail and GCI Liberty, Inc. (“GCI Liberty”) entered into a tax sharing agreement in connection with a
split-off transaction that occurred in the first quarter of 2018 (the “GCI Liberty Split-Off”). Pursuant to that 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.

Qurate Retail and Liberty Media Corporation (“LMC”) entered into certain agreements in order to govern certain
of the ongoing relationships between the two companies. These agreements include a reorganization agreement, a services
agreement (the “Services Agreement”), a facilities sharing agreement (the “Facilities Sharing Agreement”) and a tax
sharing agreement (the “Tax Sharing Agreement”). The Tax Sharing Agreement provides for the allocation and
indemnification of tax liabilities and benefits between Qurate Retail and LMC and other agreements related to tax matters.
Qurate Retail is party to on-going discussions with the IRS under the Compliance Assurance Process audit program. The
IRS may propose adjustments that relate to tax attributes allocated to and income allocable to LMC. Any potential outcome
associated with any proposed adjustments would be covered by the Tax Sharing Agreement and are not expected to have
any impact on Qurate Retail's financial position. Pursuant to the Services Agreement, LMC provides Qurate Retail with
general and administrative services including legal, tax, accounting, treasury and investor relations support. See below for
a description of an amendment to the Services Agreement entered into in December 2019. 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, Qurate Retail shares office space with LMC and related amenities
at LMC's corporate headquarters. Under these various agreements approximately $10 million, $9 million and $8 million
of these allocated expenses were reimbursable from Qurate Retail to LMC for the years ended December 31, 2021, 2020
and 2019, respectively. Qurate Retail had a tax sharing payable with LMC and Liberty Broadband of approximately $96
million and $129 million as of December 31, 2021 and 2020, respectively, included in Other liabilities in the consolidated
balance sheets.

In December 2019, the Company entered into an amendment to the Services Agreement in connection with
LMC’s entry into a new employment arrangement with Gregory B. Maffei, the Company’s Chairman of the Board (the
“Chairman”). Under the amended Services Agreement, components of his compensation would either be paid directly to
him by each of the Company, Liberty TripAdvisor Holdings, Inc. (“Liberty TripAdvisor”), and Liberty Broadband
(collectively, the “Service Companies”) or reimbursed to LMC, in each case, based on allocations among LMC and the
Service Companies set forth in the amended Services Agreement. This allocation percentage will be determined based on

F-31

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

a combination of (1) relative market capitalizations, weighted 50%, and (2) a blended average of historical time allocation
on a Liberty Media-wide and CEO basis, weighted 50%, in each case, absent agreement to the contrary by LMC and the
Service Companies in consultation with the CEO. The allocation percentage will then be adjusted annually and following
certain events. For the years ended December 31, 2021 and 2020, the allocation percentage for the Company was 17% and
19%. The amended Services Agreement provides for a five year employment term which began on January 1, 2020 and
ends December 31, 2024, with an aggregate annual base salary of $3 million (with no contracted increase), an aggregate
one-time cash commitment bonus of $5 million (paid in December 2019), an aggregate annual target cash performance
bonus of $17 million, aggregate annual equity awards of $17.5 million and aggregate equity awards granted in connection
with his entry into his new agreement of $90 million (the “upfront awards”). A portion of the grants made to our Chairman
during the years ended December 31, 2020 and 2019 related to our Company’s allocable portion of these upfront awards.

In December 2019, a new coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China and has
subsequently spread across the globe causing a global pandemic, impacting all countries where Qurate Retail operates. As
a result of the spread of the virus, certain local governmental agencies have imposed travel restrictions, local quarantines
or stay at home restrictions to contain the spread, which has caused a significant disruption to most sectors of the economy.

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

On November 20, 2020, Qurate Retail announced that an authorized committee of its Board of Directors declared
a special cash dividend (the “December Special Dividend”) in the amount of $1.50 per common share, for an aggregate
dividend of approximately $625 million, payable in cash on December 7, 2020 to stockholders of record of the Company’s
Series A and Series B common stock at the close of business on November 30, 2020.

On November 4, 2021, Qurate Retail announced that its Board of Directors declared a special cash dividend (the
“November Special Dividend”) in the amount of $1.25 per common share for an aggregate cash dividend of approximately
$488 million based on shares outstanding as of October 31, 2021. The dividend was payable on November 22, 2021 to
stockholders of record of Qurate Retail’s Series A and Series B common stock as of the close of business on November 15,
2021.

F-32

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

During the year ended December 31, 2020, the Company recognized a gain as a result of the sale of one of its
alternative energy investments. The Company received total cash consideration of $272 million and recorded a gain of
$224 million on the sale.

(2) Summary of Significant Accounting Policies

Cash and Cash Equivalents

Cash equivalents consist of investments which are readily convertible into cash and have maturities of three

months or less at the time of acquisition.

Trade Receivables

Trade receivables are reflected net of an allowance for credit losses and sales returns. A provision for bad debts
is provided as a percentage of accounts receivable based on historical experience in the period of sale and included in
selling, general and administrative expense. A provision for vendor receivables are determined based on an estimate of
probable expected losses and included in cost of goods sold.

A summary of activity in the allowance for credit losses is as follows:

Balance
beginning Charged
of year

Additions

Balance
Deductions- end of

to expense Other write-offs
amounts in millions
55 —
92 —
130 4

(80)
(89)
(122)

132
129
117

year

107
132
129

2021 . . . . . . . . . . $
2020 . . . . . . . . . . $
2019 . . . . . . . . . . $

Inventory

Inventory, consisting primarily of products held for sale, is stated at the lower of cost or market. Cost is
determined by the average cost method, which approximates the first-in, first-out method. Assessments about the
realizability of inventory require the Company to make judgments based on currently available information about the likely
method of disposition including sales to individual customers, returns to product vendors, liquidations and the estimated
recoverable values of each disposition category. Inventory is stated net of inventory obsolescence reserves of $135 million
and $181 million for the years ended December 31, 2021 and 2020, respectively.

Investments

All marketable equity and debt securities held by the Company are carried at fair value, generally based on quoted
market prices and changes in the fair value of such securities are reported in realized and unrealized gain (losses) on
financial instruments in the accompanying consolidated statements of operations. The Company elected the measurement
alternative (defined as the cost of the security, adjusted for changes in fair value when there are observable prices, less
impairments) for its equity securities without readily determinable fair values. The Company had no equity securities for
which it elected the fair value option as of December 31, 2021 and 2020.

F-33

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

For those investments in affiliates in which the Company has the ability to exercise significant influence, the
equity method of accounting is used, except in situations where the fair value option has been selected. Under the equity
method of accounting, the investment, originally recorded at cost, is adjusted to recognize the Company's share of net
earnings or losses of the affiliate as they occur rather than as dividends or other distributions are received. Losses are
limited to the extent of the Company's investment in, advances to and commitments for the investee. In the event the
Company is unable to obtain accurate financial information from an equity affiliate in a timely manner, the Company
records its share of earnings or losses of such affiliate on a lag.

The Company performs a qualitative assessment annually for its equity securities without readily determinable
fair values to identify whether an equity security could be impaired. When our qualitative assessment indicates that an
impairment could exist, we estimate the fair value of the investment and to the extent the fair value is less than the carrying
value, we record the difference as an impairment in the consolidated statements of operations.

Derivative Instruments and Hedging Activities

All of the Company's derivatives, whether designated in hedging relationships or not, are recorded on the balance
sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and
of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow
hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive earnings
and are recognized in the statements of operations when the hedged item affects earnings. Ineffective portions of changes
in the fair value of cash flow hedges are recognized in earnings. If the derivative is not designated as a hedge, changes in
the fair value of the derivative are recognized in earnings.

The Company generally enters into derivative contracts that it intends to designate as a hedge of a forecasted
transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge).
For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective
and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how
the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and
a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's
inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in
offsetting cash flows of hedged items. Changes in the fair value of a derivative that is highly effective and that is designated
and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income to the extent that the derivative
is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. The
ineffective portion of the change in fair value of a derivative instrument that qualifies as a cash flow hedge is reported in
earnings.

F-34

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Property and Equipment

Property and equipment consisted of the following:

December 31,

2021

2020

amounts in millions

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Support equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Projects in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance lease right-of-use ("ROU") assets . . . . . . . . . . . . . . . . . . . . .

Total property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

116
998
1,155
55
277
2,601

133
1,291
1,243
44
278
2,989

Property and equipment, including significant improvements, is stated at amortized cost, less impairment losses,
if any. Depreciation is computed using the straight-line method using estimated useful lives of 2 to 10 years for support
equipment and 8 to 20 years for buildings and improvements. Depreciation expense for the years ended December 31,
2021, 2020 and 2019 was $167 million, $199 million and $220 million, respectively.

Intangible Assets

Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their
estimated residual values, and reviewed for impairment upon certain triggering events. Goodwill and other intangible
assets with indefinite useful lives (collectively, "indefinite lived intangible assets") are not amortized, but instead are tested
for impairment at least annually. Our annual impairment assessment of our indefinite-lived intangible assets is performed
during the fourth quarter of each year.

In evaluating goodwill on a qualitative basis, the Company reviews the business performance of each reporting
unit and evaluates other relevant factors as identified in the relevant accounting guidance to determine whether it was more
likely than not that an indicated impairment exists for any of our reporting units. The Company considers whether there
are any negative macroeconomic conditions, industry specific conditions, market changes, increased competition,
increased costs in doing business, management challenges, the legal environments and how these factors might impact
company specific performance in future periods. As part of the analysis the Company also considers fair value
determinations for certain reporting units that have been made at various points throughout the current year and prior year
for other purposes. If based on the qualitative analysis it is more likely than not that an impairment exists, the Company
performs the quantitative impairment test.

The quantitative goodwill impairment test compares the estimated fair value of a reporting unit to its carrying
value. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate
discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and
timing of expected future cash flows. The cash flows employed in Qurate Retail's valuation analyses are based on
management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in
future years. There is no assurance that actual results in the future will approximate these forecasts.

The accounting guidance also permits entities to first perform a qualitative assessment to determine whether it is
more likely than not that an indefinite-lived intangible asset, other than goodwill, is impaired. The accounting guidance
also allows entities the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period

F-35

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

and proceed directly to the quantitative impairment test. The entity may resume performing the qualitative assessment in
any subsequent period. If the qualitative assessment supports that it is more likely than not that the carrying value of the
Company’s indefinite-lived intangible assets, other than goodwill, exceeds its fair value, then a quantitative assessment is
performed. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is
recognized in an amount equal to that excess.

Impairment of Long-lived Assets

The Company periodically reviews the carrying amounts of its property and equipment and its intangible assets
(other than goodwill and indefinite-lived intangible assets) to determine whether current events or circumstances indicate
that such carrying amounts may not be recoverable. If the carrying amount of the asset group is greater than the expected
undiscounted cash flows to be generated by such asset group, including its ultimate disposition, an impairment adjustment
is to be recognized. Such adjustment is measured by the amount that the carrying value of such asset groups exceeds their
fair value. The Company generally measures fair value by considering sale prices for similar asset groups or by discounting
estimated future cash flows using an appropriate discount rate. Considerable management judgment is necessary to
estimate the fair value of asset groups. Accordingly, actual results could vary significantly from such estimates. Asset
groups to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell.

Noncontrolling Interests

The Company reports noncontrolling interests of subsidiaries within equity in the balance sheet and the amount
of consolidated net income attributable to the parent and to the noncontrolling interest is presented in the statements of
operations. Also, changes in ownership interests in subsidiaries in which the Company maintains a controlling interest are
recorded in equity.

Foreign Currency Translation

The functional currency of the Company is the U.S. Dollar. The functional currency of the Company's foreign
operations generally is the applicable local currency for each foreign subsidiary. Assets and liabilities of foreign
subsidiaries are translated at the spot rate in effect at the applicable reporting date, and the consolidated statements of
operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized
cumulative translation adjustment, net of applicable income taxes, is recorded as a component of accumulated other
comprehensive earnings in 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 the accompanying consolidated statements of operations and comprehensive earnings (loss) as unrealized
(based on the applicable period-end exchange rate) or realized upon settlement of the transactions. These realized and
unrealized gains and losses are reported in the Other, net line item in the consolidated statements of operations.

F-36

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Revenue Recognition

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

QVC Int'l

Corp and other

QVC Int'l

Corp and other

Year ended December 31, 2021
Zulily
amounts in millions
440
66
559
295
13
50
30
1,453

1,237
723
492
265
119
228
13
3,077

Year ended December 31, 2020
Zulily
amounts in millions
490
73
583
394
17
51
28
1,636

1,199
724
437
260
122
216
9
2,967

Year ended December 31, 2019
Zulily
amounts in millions
422
53
582
416
15
54
29
1,571

1,010
659
439
262
104
221
14
2,709

1,038
—
199
—
—
—
—
1,237

903
—
166
—
—
—
—
1,069

729
—
172
—
—
—
—
901

Total

5,993
2,012
2,541
1,540
1,096
637
225
14,044

Total

6,121
2,058
2,356
1,598
1,208
630
206
14,177

Total

5,214
2,016
2,484
1,597
1,261
677
209
13,458

QVC Int'l

Corp and other

Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Beauty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Apparel . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accessories . . . . . . . . . . . . . . . . . . . . . . . . . .
Electronics . . . . . . . . . . . . . . . . . . . . . . . . . .
Jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue . . . . . . . . . . . . . . . . . . . . . . . .

Total Revenue . . . . . . . . . . . . . . . . . . . . . . . $

QxH

3,278
1,223
1,291
980
964
359
182
8,277

QxH

3,529
1,261
1,170
944
1,069
363
169
8,505

QxH

Total Revenue . . . . . . . . . . . . . . . . . . . . . . . $

3,053
1,304
1,291
919
1,142
402
166
8,277

F-37

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Consumer Product Revenue and Other Revenue. Qurate Retail's revenue includes sales of consumer products in
the following categories: home, beauty, apparel, accessories, electronics and jewelry, which are primarily sold through live
merchandise-focused televised shopping programs and via our websites and other interactive media, including catalogs.

Other revenue consists primarily of income generated from our company branded credit cards in which a large
consumer financial services company provides revolving credit directly to the Company’s customers for the sole purpose
of purchasing merchandise or services with these cards. In return, the Company receives a portion of the net economics
of the credit card program.

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

The Company recognizes revenue related to its company branded credit cards over time as the credit cards are

used by Qurate Retail's customers.

Sales, value add, use and other taxes we collect concurrent with revenue-producing activities are excluded from

revenue.

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

The Company generally has payment terms with its customers of one year or less and has elected the practical

expedient applicable to such contracts not to consider the time value of money.

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

An allowance for returned merchandise is provided as a percentage of sales based on historical experience. Sales

tax collected from customers on retail sales is recorded on a net basis and is not included in revenue.

A summary of activity in the allowance for sales returns, is as follows:

Balance
beginning of year

Additions -
charged to
earnings

Deductions

Balance end
of year

2021 . . . . $
2020 . . . . $
2019 . . . . $

300
261
266

amounts in millions

2,145
2,188
2,336

(2,171)
(2,149)
(2,341)

274
300
261

F-38

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Cost of Retail Sales

Cost of retail sales sold primarily includes actual product cost, provision for obsolete inventory, buying

allowances received from suppliers, shipping and handling costs and warehouse costs.

Advertising Costs

Advertising costs generally are expensed as incurred. Advertising expense aggregated $560 million, $440 million
and $395 million for the years ended December 31, 2021, 2020 and 2019, respectively. Advertising costs are reflected in
the selling, general and administrative, including stock-based compensation line item in our consolidated statements of
operations.

Stock-Based Compensation

As more fully described in note 11, the Company has granted to its directors, employees and employees of its
subsidiaries options, restricted stock and stock appreciation rights relating to shares of Qurate Retail and/or Liberty
Ventures common stock ("Qurate Retail common stock") (collectively, "Awards"). The Company measures the cost of
employee services received in exchange for an Award of equity instruments (such as stock options and restricted stock)
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 an Award of liability instruments (such as stock appreciation rights that will
be settled in cash) based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting
date.

Stock compensation expense was $72 million, $64 million and $71 million for the years ended December 31,
2021, 2020 and 2019, respectively, included in selling, general and administrative expense in the accompanying
consolidated statements of operations.

Income Taxes

The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities
are recognized for the future tax consequences attributable to differences between the financial statement carrying value
amounts and income tax bases of assets and liabilities and the expected benefits of utilizing net operating loss and tax
credit carryforwards. The deferred tax assets and liabilities are calculated using enacted tax rates in effect for each taxing
jurisdiction in which the Company operates for the year in which those temporary differences are expected to be recovered
or settled. Net deferred tax assets are then reduced by a valuation allowance if the Company believes it more likely than
not such net deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of an enacted change
in tax rates is recognized in income in the period that includes the enactment date.

When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes
interest expense from the first period the interest would begin accruing according to the relevant tax law. Such interest
expense is included in interest expense in the accompanying consolidated statements of operations. Any accrual of
penalties related to underpayment of income taxes on uncertain tax positions is included in other income (expense) in the
accompanying consolidated statements of operations.

F-39

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Earnings (Loss) Attributable to Qurate Retail Stockholders and 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.

Series A and Series B Qurate Retail Common Stock

EPS for all periods through December 31, 2021, is based on the following weighted average shares outstanding.
Excluded from diluted EPS for the years ended December 31, 2021, 2020 and 2019 are approximately 24 million, 28
million and 22 million potentially dilutive common shares, respectively, because their inclusion would be antidilutive.

Basic WASO . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Potentially dilutive shares . . . . . . . . . . . . . . . . . .
Diluted WASO . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reclasses and adjustments

Years ended December 31,

2021

2020

2019

number of shares in millions

403
12
415

416
5
421

424
—
424

Certain prior period amounts have been reclassified for comparability with the current year presentation.

As a result of repurchases of Series A Qurate Retail common stock, the Company’s additional paid-in capital
balance was in a deficit position in certain quarterly periods during the years ended December 31, 2021, 2020 and 2019.
In order to maintain a zero balance in the additional paid-in capital account, we reclassified the amount of the deficit at
December 31, 2021, 2020 and 2019 to retained earnings.

Estimates

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 of non-financial instruments, (ii) accounting for income taxes and
(iii) estimates of retail-related adjustments and allowances to be its most significant estimates.

(3) Supplemental Disclosures to Consolidated Statements of Cash Flows

Years ended December 31,
2020 2019

2021

Cash paid for interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

amounts in millions
458

392

360

Cash paid for income taxes, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

116

175

Non-cash capital additions obtained in exchange for liabilities . . . . . . . . . . . . . . . . . . . . . . . . $

—

F-40

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance

sheets to the total amount presented in our consolidated statements of cash flows:

December 31,
2021

December 31,
2020

amounts in millions

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Restricted cash included in other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total cash, cash equivalents and restricted cash in the consolidated statement
of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

587
9

596

806
8

814

(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, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or
indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company does not have any recurring
assets or liabilities measured at fair value that would be considered Level 3.

The Company's assets and liabilities measured at fair value are as follows:

December 31, 2021
Quoted prices
in active
markets
for identical observable

Significant
other

December 31, 2020
Quoted prices
in active
markets
for identical observable

Significant
other

Total

assets
(Level 1)

inputs

(Level 2) Total

assets
(Level 1)

inputs
(Level 2)

Description

Cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . $ 149
Indemnification asset . . . . . . . . . . . . . . . . . . . . . $ 324
—
Financial instrument asset . . . . . . . . . . . . . . . . $
Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,315

149
—
—
—

amounts in millions
290
345
23
1,315 1,750

—
324
—

290
—
—
—

—
345
23
1,750

The majority of the Company's Level 2 financial assets and liabilities are debt instruments with quoted market
prices that are not considered to be traded on "active markets," as defined in GAAP. Accordingly, the debt instruments are
reported in the foregoing table as Level 2 fair value.

Pursuant to an indemnification agreement initially entered into by GCI Liberty and assumed by Liberty
Broadband in connection with a merger between the two companies, Liberty Broadband has agreed to indemnify Liberty
nteractive LLC (“LI LLC”) for certain payments made to holders of LI LLC’s 1.75% Exchangeable Debentures due 2046
(the “1.75% Exchangeable Debentures”). An indemnity asset in the amount of $281 million was recorded upon completion
of the GCI Liberty Split-Off. In June 2018, Qurate Retail repurchased 417,759 of the 1.75% Exchangeable Debentures for
approximately $457 million, including accrued interest, and GCI Liberty made a payment under the indemnification
agreement to Qurate Retail in the amount of $133 million. The remaining indemnification to LI LLC for certain payments
made to holders of the 1.75% Exchangeable Debentures pertains to the holders’ ability to exercise their exchange right

F-41

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

according to the terms of the debentures on or before October 5, 2023. Such amount will equal the difference between the
exchange value and par value of the 1.75% Exchangeable Debentures at the time the exchange occurs. The indemnification
asset recorded in the consolidated balance sheets as of December 31, 2021 represents the fair value of the estimated
exchange feature included in the 1.75% Exchangeable Debentures primarily based on observable market data as significant
inputs (Level 2). As of December 31, 2021 and 2020, a holder of the 1.75% Exchangeable Debentures did have the ability
to exchange and, accordingly, such indemnification asset is included as a current asset in our consolidated balance sheets
as of those dates.

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:

Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Exchangeable senior debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Indemnification asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years ended December 31,
2021 2020 2019
amounts in millions
77
(130)
(21)
173
99

(22)
(277) (337)
123
143
(15)
25
(110) (251)

(1)

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 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). The change in the fair value of the exchangeable
senior debentures attributable to changes in the instrument specific credit risk were losses of $44 million, gains of $21
million and gains of $1 million, net of the recognition of previously unrecognized gains and losses, for the years ended
December 31, 2021, 2020, and 2019, respectively. The cumulative change was a gain of $148 million as of December 31,
2021, net of the recognition of previously unrecognized gains and losses.

(5) Goodwill and Other Intangible Assets

Goodwill

Changes in the carrying amount of goodwill are as follows:

QxH

QVC
International

Zulily

Corporate
and Other Total

Balance at January 1, 2020 . . . . . . . . . . . . . . . . . $
Foreign currency translation adjustments . . .
Balance at December 31, 2020 . . . . . . . . . . . . . .
Foreign currency translation adjustments . . .
Impairments . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at December 31, 2021 . . . . . . . . . . . . . . $

5,228
—
5,228
—
—
5,228

F-42

amounts in millions
477
—
477
—
(233)
244

859
62
921
(66)
—
855

12
—
12
—
—
12

6,576
62
6,638
(66)
(233)
6,339

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

As presented in the accompanying consolidated balance sheets, tradenames is the other significant indefinite lived

intangible asset.

Intangible Assets Subject to Amortization

Intangible assets subject to amortization are comprised of the following:

December 31, 2021

December 31, 2020

Gross
carrying
amount

Accumulated
amortization

Net
carrying
amount

Gross
carrying
amount

amounts in millions

Net

Accumulated carrying
amortization
amount

Television distribution rights . . . . . . . . . . $
Customer relationships . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

818
3,321
1,443
5,582

(673)
(3,087)
(1,077)
(4,837)

145
234
366
745

814
3,334
1,434
5,582

(751)
(3,004)
(1,048)
(4,803)

63
330
386
779

The weighted average life of these amortizable intangible assets was approximately 9 years at the time of
acquisition. However, amortization is expected to match the usage of the related asset and will be on an accelerated basis
as demonstrated in table below.

Amortization expense for intangible assets with finite useful lives was $352 million, $363 million and $386
million for the years ended December 31, 2021, 2020 and 2019, respectively. Based on its amortizable intangible assets as
of December 31, 2021, Qurate Retail expects that amortization expense will be as follows for the next five years (amounts
in millions):

2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
$
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

319
197
120
51
50

Impairments

Zulily’s business deteriorated significantly during the second half of 2021. Zulily initiated a process to evaluate
its current business model and long-term business strategy in light of its challenges within the retail environment.
Additionally, Zulily management has seen turnover and is undergoing a change at the Chief Executive Officer position.
Upon completing the evaluation of Zulily’s model and long-term strategy, it was determined during the fourth quarter of
2021, that an indication of impairment existed for the Zulily reporting unit. With the assistance of a third party specialist,
the fair value of the tradename was determined using the relief from royalty method, primarily using a discounted cash
flow model using Zulily’s projections of future operating performance (income approach) and applying a royalty rate
(market approach) (Level 3), and an impairment in the amount of $130 million was recorded during the fourth quarter of
2021, in the impairment of intangible assets and long lived assets line item in the consolidated statements of operations.
With the assistance of a third party specialist, the fair value of the Zulily reporting unit was determined using a discounted
cash flow method (Level 3), and a goodwill impairment in the amount of $233 million was recorded during the fourth
quarter of 2021, in the impairment of intangible assets and long lived assets line item in the consolidated statements of
operations. Additionally, during the third quarter of 2019, the same process was followed and as a result, an impairment

F-43

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

of the tradename and goodwill for the amounts of $580 million and $440 million, respectively, were recorded in the
impairment of intangible assets and long lived assets line item in the consolidated statements of operations.

The Company performed a qualitative goodwill impairment analysis during the fourth quarter of 2019 and
determined that a triggering event existed at the HSN reporting unit due to a variety of factors, primarily HSN’s inability
to meet its 2019 revenue projections. With the assistance of an third party specialist, the Company estimated the value of
its tradename intangible asset as of December 31, 2019. The tradename valuation was performed using a relief from
royalties method, primarily using a discounted cash flow model using HSN’s projections of future operating performance
(income approach) and applying a royalty rate (market approach) (Level 3). As a result of the analysis, HSN recorded a
$147 million impairment to its tradename intangible asset as of December 31, 2019.

As of December 31, 2021 the Company had accumulated goodwill impairment losses of $673 million, which was

all attributed to the Zulily reporting unit.

(6) Debt

Debt is summarized as follows:

Outstanding

principal

December 31,

Carrying value
December 31, December 31,

2021

2021
amounts in millions

2020

Corporate level debentures

8.5% Senior Debentures due 2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
8.25% Senior Debentures due 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4% Exchangeable Senior Debentures due 2029 . . . . . . . . . . . . . . . . . . . . . .
3.75% Exchangeable Senior Debentures due 2030 . . . . . . . . . . . . . . . . . . . .
1.75% Exchangeable Senior Debentures due 2046 . . . . . . . . . . . . . . . . . . . .

Subsidiary level notes and facilities

QVC 4.375% Senior Secured Notes due 2023. . . . . . . . . . . . . . . . . . . . . . . .
QVC 4.85% Senior Secured Notes due 2024 . . . . . . . . . . . . . . . . . . . . . . . . .
QVC 4.45% Senior Secured Notes due 2025 . . . . . . . . . . . . . . . . . . . . . . . . .
QVC 4.75% Senior Secured Notes due 2027 . . . . . . . . . . . . . . . . . . . . . . . . .
QVC 4.375% Senior Secured Notes due 2028. . . . . . . . . . . . . . . . . . . . . . . .
QVC 5.45% Senior Secured Notes due 2034 . . . . . . . . . . . . . . . . . . . . . . . . .
QVC 5.95% Senior Secured Notes due 2043 . . . . . . . . . . . . . . . . . . . . . . . . .
QVC 6.375% Senior Secured Notes due 2067. . . . . . . . . . . . . . . . . . . . . . . .
QVC 6.25% Senior Secured Notes due 2068 . . . . . . . . . . . . . . . . . . . . . . . . .
3.5% Exchangeable Senior Debentures due 2031 . . . . . . . . . . . . . . . . . . . . .
QVC Bank Credit Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred loan costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

287
505
396
432
332

750
600
600
575
500
400
300
225
500
—
481

Total consolidated Qurate Retail debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Less debt classified as current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,883

286
503
328
347
640

750
600
599
575
500
399
300
225
500
—
481
(44)
6,989
(1,315)
5,674

285
502
362
346
649

750
600
599
575
500
399
300
225
500
393
—
(49)
6,936
(1,750)
5,186

F-44

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Exchangeable Senior Debentures

Each $1,000 debenture of LI LLC’s 4% Exchangeable Senior Debentures was exchangeable at the holder's option
for the value of 3.2265 shares of Sprint Corporation (“Sprint”) common stock and 0.7860 shares of Lumen Technologies,
Inc. (“Lumen Technologies”) (formerly known as CenturyLink, Inc.) common stock. On April 1, 2020, T-Mobile US,
Inc. (“T-Mobile”) completed its acquisition of Sprint Corporation (“TMUS/S Acquisition”) for 0.10256 shares of T-Mobile
for every share of Sprint Corporation. Following the TMUS/S Acquisition, the reference shares attributable to each
$1,000 original principal amount of the 4.0% Senior Exchangeable Debentures due 2029 consist of 0.3309 shares of
common stock of T-Mobile, and 0.7860 shares of common stock of Lumen Technologies. LI LLC may, at its election, pay
the exchange value in cash, Sprint and Lumen Technologies common stock or a combination thereof. LI LLC, at its option,
may redeem the debentures, in whole or in part, for cash generally equal to the principal amount of the debentures plus
accrued interest. As a result of various principal payments made to holders of the 4% Exchangeable Senior Debentures,
the adjusted principal amount of each $1,000 debenture is $913 as of December 31, 2021.

Each $1,000 debenture of LI LLC's 3.75% Exchangeable Senior Debentures was exchangeable at the holder's
option for the value of 2.3578 shares of Sprint common stock and 0.5746 shares of Lumen Technologies common stock.
Following the TMUS/S Acquisition, each $1,000 debenture of LI LLC’s 3.75% Exchangeable Senior Debentures is
exchangeable at the holder’s option for the value of 0.2419 shares of T-Mobile common stock and 0.5746 shares of Lumen
Technologies common stock. LI LLC may, at its election, pay the exchange value in cash, Sprint and Lumen Technologies
common stock or a combination thereof. Qurate Retail, at its option, may redeem the debentures, in whole or in part, for
cash equal to the principal amount of the debentures plus accrued interest. As a result of various principal payments made
to holders of the 3.75% Exchangeable Senior Debentures, the adjusted principal amount of each $1,000 debenture is $938
as of December 31, 2021. On February 15, 2022, the Company completed the semiannual interest payment of $18.75 per
$1,000 debenture and made an additional distribution of $0.28730 per debenture, resulting in an ending principal amount
for each $1,000 debenture of $937 as of February 15, 2022.

Qurate Retail issued senior exchangeable debentures due September 2046 which bear interest at an annual rate of
1.75%. Each $1,000 debenture is exchangeable at the holder’s option for the value of 2.9317 shares of Charter Class A
common stock. Qurate Retail may, at its election, pay the exchange value in cash, Charter Class A common stock or a
combination thereof. The number of shares of Charter Class A common stock attributable to a debenture represents an
initial exchange price of approximately $341.10 per share. On October 5, 2023, Qurate Retail, at its option, may redeem
the debentures, in whole or in part, for cash generally equal to the principal amount of the debentures plus accrued interest.
See note 4 for additional information about these debentures.

As part of a common control transaction with QVC completed in December 2020, QVC Global Corporate
Holdings, LLC (“QVC Global”), a subsidiary of QVC, became the primary co-obligor of LI LLC’s 3.5% Exchangeable
Senior Debentures (the “Motorola Exchangeables”), allowing the Motorola Exchangeables to be serviced direct by cash
generated from QVC’s foreign operations. Concurrently, LI LLC issued a promissory note to QVC Global with an initial
principal amount of $1.8 billion, a stated annual interest rate of 0.48% and a maturity of December 29, 2029. Interest on
the promissory note is to be paid annually beginning on December 29, 2021. On December 29, 2021, LI LLC repaid $85
million principal amount of the promissory note along with a $9 million annual interest payment. Each $1,000 debenture
of the Motorola Exchangeables was exchangeable at the holder's option for the value of 5.2598 shares of Motorola
Solutions, Inc. (“MSI”). The remaining exchange value was payable, at QVC Global's option, in cash or MSI stock or a
combination thereof. QVC Global had the option to redeem the debentures, in whole or in part, for cash generally equal
to the adjusted principal amount of the debentures plus accrued interest. On October 27, 2021, a notice was issued to all
holders to redeem any and all outstanding Motorola Exchangeables on December 13, 2021. Bondholders had until the
close of business on December 10, 2021 to exchange their bonds. During November and December 2021, QVC Global
delivered MSI shares, which were acquired pursuant to a forward purchase contract, to the holders of the Motorola

F-45

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Exchangeables with a fair value of approximately $573 million to settle the exchanges of the Motorola Exchangeables.
For holders who did not participate in the exchange, their bonds were redeemed on December 13, 2021 at adjusted
principal, plus accrued interest and dividend pass-thru for a total cash payment of approximately $1 million. No Motorola
Exchangeables remain outstanding as of December 31, 2021. During the year ended December 31, 2020, holders
exchanged, under the terms of the Motorola Exchangeables, principal amounts of approximately $25 million, and Qurate
Retail made cash payments of approximately $49 million respectively.

Qurate Retail has elected to account for all of its exchangeables 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. On a
quarterly basis, Qurate Retail determines whether a triggering event has occurred to require current classification of certain
exchangeables, as discussed below.

The Company has classified the debentures that could be redeemed for cash as a current liability because the
Company does not own shares to exchange the debentures or they are currently exchangeable. The Company also reviews
the terms of the debentures on a quarterly basis to determine whether a triggering event for an open exchange window has
occurred, which requires current classification of the exchangeables as the exchange is at the option of the holder.
Exchangeable senior debentures classified as current totaled $1,315 million at December 31, 2021.

Interest on the Company's exchangeable debentures is payable semi-annually based on the date of issuance. At

maturity, all of the Company's exchangeable debentures are payable in cash.

Senior Debentures

Interest on the 8.5% Senior Debentures due 2029 and the 8.25% Senior Debentures due 2030 (collectively, the
“Senior Debentures”) is payable semi-annually based on the date of issuance. The Senior Debentures are stated net of
aggregate unamortized discount and issuance costs of $3 million at December 31, 2021 and $5 million at December 31,
2020. Such discount and issuance costs are being amortized to interest expense in the accompanying consolidated
statements of operations.

QVC Senior Secured Notes

On August 21, 2014, QVC issued $600 million principal amount of 4.45% Senior Secured Notes due 2025 at an
issue price of 99.860% and $400 million principal amount 5.45% Senior Secured Notes due 2034 at an issue price of
99.784% (collectively, the “August Notes”). The August Notes are secured by the capital stock of QVC and certain of
QVC’s subsidiaries and have equal priority to QVC’s senior secured credit facility. During prior years, QVC issued $500
million principal amount of 5.125% Senior Secured Notes due 2022 at par, $750 million principal amount of 4.375%
Senior Secured Notes due 2023 at par and $300 million principal amount of 5.95% Senior Secured Notes due 2043 at par.

In September 2018, QVC completed a registered debt offering for $225 million of 6.375% Senior Notes due 2067
(the “2067 Notes”). QVC has the option to call the 2067 Notes after 5 years at par value, plus accrued and unpaid interest.

On November 26, 2019, QVC completed a registered debt offering for $435 million of the 6.25% Senior Secured
Notes due 2068 (“2068 Notes”) at par. QVC granted an option for underwriters to purchase up to an additional $65 million
of 2068 Notes which was exercised on December 6, 2019, bringing the aggregate principal borrowed to $500 million.
QVC has the option to call the 2068 Notes after 5 years at par value, plus accrued and unpaid interest.

F-46

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

On February 4, 2020, QVC completed a registered debt offering for $575 million of the 4.75% Senior Secured
Notes due 2027 (the "2027 Notes”) at par. Interest on the 2027 Notes is paid semi-annually in February and August, with
payments commencing on August 15, 2020. The proceeds were used to partially prepay existing indebtedness under QVC's
bank credit facilities.

On August 20, 2020, QVC completed a registered debt offering for $500 million of the 4.375% Senior Secured
Notes due 2028 (the "2028 Notes") at par. Interest on the 2028 Notes will be paid semi-annually in March and September,
with payments commencing on March 1, 2021. The proceeds were used in a cash tender offer (the “Tender Offer”) to
purchase the outstanding $500 million of 5.125% Senior Secured Notes due 2022 (the “2022 Notes”). QVC also issued a
notice of redemption exercising its right to optionally redeem any of the 2022 Notes that remained outstanding following
the Tender Offer. As a result of the Tender Offer and the redemption, the Company recorded a loss on extinguishment of
debt in the consolidated statements of operations of $42 million for the year ended December 31, 2020.

QVC Bank Credit Facilities

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 a fifth
amended and restated agreement with QVC, Zulily, CBI, and QVC Global Corporate Holdings, LLC (“QVC Global”),
each a direct or indirect 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.

The Fifth Amended and Restated Credit Agreement is a multi-currency facility providing for a $3.25 billion
revolving credit facility (the “New 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 New 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 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
Zulily, CBI, QVC Global or any other borrower under the New 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 New Credit Facility may be reborrowed.

The loans under the New 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, Zulily’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 Zulily’s and CBI’s equity
interests.

F-47

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

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 December 31, 2021 was $2.75 billion on
which Zulily and CBI may also borrow. The interest rate on the Fifth Amended and Restated Credit Agreement was 1.5%
at December 31, 2021.

Interest Rate Swap Arrangements

During the year ended December 31, 2016, QVC entered into a three-year interest rate swap arrangement with a
notional amount of $125 million to mitigate the interest rate risk associated with interest payments related to its variable
rate debt, which expired in June 2019. In July 2019, QVC entered into a three-year interest swap arrangement with a
notional amount of $125 million. In December 2018, QVC entered into a thirteen month interest rate swap arrangement
that effectively converted $250 million of its variable rate bank credit facility to a fixed rate of 1.05% which expired in
January 2020. The swap arrangements were not treated as hedges under U.S. GAAP and the fair value of the swap
instruments were in a net liability position as of December 31, 2021 and 2020.

Debt Covenants

Qurate Retail and its subsidiaries were in compliance with all debt covenants at December 31, 2021.

Five Year Maturities

The annual principal maturities of Qurate Retail's debt, based on stated maturity dates, for each of the next five

years is as follows (amounts in millions):

2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

3
753
603
603
484

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 2067 Notes and
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, based on quoted prices of

F-48

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

instruments not considered to be active markets, of Qurate Retail's publicly traded debt securities that are not reported at
fair value in the accompanying consolidated balance sheets is as follows (amounts in millions):

Senior debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
QVC senior secured notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

871
4,595

2021

2020

892
4,705

December 31,

Due to the variable rate nature, Qurate Retail believes that the carrying amount of its subsidiary debt not discussed

above approximated fair value at December 31, 2021.

(7) Leases

Right-of-use assets and lease liabilities are initially recognized based on the present value of the future lease
payments over the expected lease term. As for most leases the implicit rate is not readily determinable, the Company uses
a discount rate in determining the present value of future payments based on the Company’s incremental borrowing rate
on a collateralized basis aligning with the term of the lease. Our lease agreements include both lease and non-lease
components, which the Company accounts for as a single lease component. Additionally, the Company does not recognize
right-of-use assets or lease liabilities for short term-term leases, which are those leases with a term of twelve months or
less at the lease commencement date.

The Company has finance lease agreements with transponder and transmitter network suppliers for the right to
transmit its signals in the U.S. and Germany. The Company is also party to a finance lease agreement for data processing
hardware and a warehouse. The Company also leases data processing equipment, facilities, office space, retail space and
land. These leases are classified as operating leases. Operating lease ROU assets and operating lease liabilities are
recognized based on the present value of the future lease payments using our incremental borrowing rate.

Our leases have remaining lease terms of less than one year to 13 years some of which may include
the option to extend for up to 14 years, and some of which include options to terminate the leases within less than one year.

The components of lease cost during the years ended December 31, 2021, 2020 and 2019 were as follows:

Operating lease cost (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Finance lease cost

Depreciation of leased assets . . . . . . . . . . . . . . . . . . . . . . . $
Interest on lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . .
Total finance lease cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

2021

Years ended December 31,
2020
amounts in millions
87

2019

19
8
27

20
9
29

(1) Included within operating lease costs were short-term lease costs and variable lease costs, which were not

material to the financial statements.

F-49

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

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

2021

December 31,
2020

2019

Weighted-average remaining lease term (years):

Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Weighted-average discount rate:

Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.7
8.3

5.2%
5.1%

8.5
8.5

5.1%
5.1%

Supplemental balance sheet information related to leases was as follows:

December 31,

2021

2020

amounts in millions

Operating leases:
Operating lease ROU assets (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

Current operating lease liabilities (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Operating lease liabilities (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total operating lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

Finance Leases:
Finance lease ROU assets (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Finance lease ROU asset accumulated depreciation (4) . . . . . . . . . . . . . . . . . .

Finance lease ROU assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Current finance lease liabilities (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Finance lease liabilities (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total finance lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

351

64
303
367

277
(151)
126
20
137
157

9.2
9.1

5.0%
4.9%

371

63
320
383

278
(141)
137
18
150
168

(1) Included within the Other assets, at cost, net of accumulated amortization line item on the consolidated

balance sheets.

(2) Included within the Other current liabilities line item on the consolidated balance sheets.
(3) Included within the Other liabilities line item on the consolidated balance sheets.
(4) Included within the Property and equipment on the consolidated balance sheets.

F-50

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Supplemental cash flow information related to leases was as follows:

Cash paid for amounts included in the measurement of
lease liabilities:

Operating cash outflows from operating leases . . . . . . . . . $
Operating cash outflows from finance leases . . . . . . . . . . $
Financing cash outflows from finance leases . . . . . . . . . . $

ROU assets obtained in exchange for lease obligations

Operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

2021

Years ended December 31,
2020
amounts in millions

2019

82
8
18

49
11

86
8
18

35
—

75
9
22

173
16

Future lease payments under finance leases and operating leases with initial terms of one year or more at December 31,
2021 consisted of the following:

Finance Leases

Operating Leases

amounts in millions

2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Less: imputed interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

27
27
26
23
22
67
192
35
157

80
72
56
47
41
163
459
92
367

On October 5, 2018, QVC entered into a lease for an East Coast distribution center (“ECDC Lease”).
The 1.7 million square foot rental building is located in Bethlehem, Pennsylvania and has an initial term of 15 years. QVC
obtained initial access to a portion of the ECDC Lease during March 2019 and obtained access to the remaining portion
during September 2019. In total, QVC recorded a ROU asset of $141 million and an operating lease liability
of $131 million relating to the ECDC Lease, with the difference attributable to prepaid rent. QVC is required to pay an
initial base rent of $10 million per year, with payments that began in the third quarter of 2019, and increasing to $14 million
per year, as well as all real estate taxes and other building operating costs. QVC also has the option to extend the term of
the ECDC Lease for up to two consecutive terms of 5 years each and one final term of 4 years.

F-51

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

(8) Income Taxes

Income tax benefit (expense) consists of:

Current:

Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
State and local . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deferred:

Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State and local . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income tax benefit (expense) . . . . . . . . . . . . . $

Years ended December 31,

2021

2020

2019

amounts in millions

(49)
(55)
(117)
(221)

(24)
26
2
4
(217)

8
(48)
(105)
(145)

315
26
15
356
211

94
(27)
(93)
(26)

247
(5)
1
243
217

The following table presents a summary of our domestic and foreign earnings from continuing operations before income
taxes:

2021

Years ended December 31,
2020
amounts in millions

2019

Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

262
376
638

735
316
1,051

(858)
236
(622)

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of

21% as a result of the following:

Years ended December 31,

2021

2020

2019

amounts in millions

Computed expected tax benefit (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (134)
(20)
State and local income taxes, net of federal income taxes . . . . . . . . . . . . . . . . . . . . . . . .
Tax on foreign earnings, net of federal tax benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(113)
Alternative energy tax credits and incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
125
Change in valuation allowance affecting tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
Change in tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
Corporate realignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
Change in tax rate - tax loss carryback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
Tax write-off of consolidated subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
Impairment of intangible asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(49)
(21)
Non-deductible interest on Preferred Stock to non-employee . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)
Income tax benefit (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (217)

(221)
(45)
47
139
(59)
(15)
360
—
—
—
(6)
11
211

131
9
(1)
152
(51)
(23)
—
45
34
(93)
—
14
217

F-52

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

For the year ended December 31, 2021 income tax expense was greater than the U.S. statutory rate of 21% due
to foreign tax expense, state income tax expense, the impairment of goodwill that is not deductible for tax purposes, and
non-deductible interest expense related to Preferred Stock, partially offset by benefits from tax credits generated by our
alternative energy investments.

During November and December of 2021, the Company, through a wholly owned foreign subsidiary, recognized
income related to the exchange and redemption of the outstanding Motorola Exchangeables and the extinguishment of
related hedges. The income is subject to tax under the U.S Global Intangible Low-taxed Income (“GILTI”) rules. The tax
effect of this GILTI income, including the federal tax benefit of related foreign tax credits, is treated by the Company as a
period cost. In addition, the Company recorded a U.S. federal tax benefit for foreign derived intangible income deductions
claimed on royalty income recognized by the Company in the U.S. during 2021. The tax effect of these items is included
in Tax on foreign earnings, net of federal tax benefit in the above table.

For the year ended December 31, 2020 the Company recorded an income tax benefit. The tax benefit was

primarily driven by the impacts of a corporate realignment and tax credits generated by alternative energy investments.

During the fourth quarter of 2020, the Company completed a corporate realignment transaction, whereby the
assets and liabilities of certain foreign business units held in U.S. subsidiaries were transferred to QVC Global, a foreign
subsidiary of QVC. This changed the manner in which income of the foreign business units is subject to U.S. income tax.
As part of this realignment and upon entering into a payment agreement, QVC Global became the primary co-obligor of
the Motorola Exchangeables. The Company’s accounting policy is not to record deferred income taxes related to global
intangible low-taxed income activity in our foreign subsidiaries but instead to recognize income tax expense in the periods
as incurred. Accordingly, the deferred income tax liability for the Motorola Exchangeables that existed prior to the
corporate realignment was reduced to zero and the Company recorded a corresponding income tax benefit.

For the year ended December 31, 2019 income tax benefit was greater than the U.S. statutory rate of 21%
primarily due to tax benefits from tax credits and incentives generated by our alternative energy investments and tax
benefits from losses generated in 2019 that were eligible for carryback to tax years with federal income tax rates greater
than the U.S. statutory tax rate of 21%, partially offset by a goodwill impairment that is not deductible for tax purposes
and an increase in the valuation allowance against certain deferred tax assets.

F-53

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and

deferred income tax liabilities are presented below:

December 31,

2021

2020

amounts in millions

Deferred tax assets:

Tax losses and credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Foreign tax credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued stock compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating lease liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid royalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deferred tax liabilities:

Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discount on exchangeable debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

240
95
15
71
63
94
131
709
(264)
445

758
145
768
94
1,765
1,320

280
161
18
82
54
—
168
763
(264)
499

816
163
714
133
1,826
1,327

The Company's valuation allowance did not increase or decrease in 2021.

At December 31, 2021, the Company had a deferred tax asset of $240 million for net operating losses, credit
carryforwards, and interest expense carryforwards. If not utilized to reduce income tax liabilities in future periods, $177
million of these loss carryforwards and tax credits will expire at various times between 2022 and 2039. The remaining $63
million of tax losses and carryforwards may be carried forward indefinitely. These losses and credit carryforwards are
expected to be utilized prior to expiration, except for $181 million which, based on current projections, will not be utilized
in the future and are subject to a valuation allowance.

At December 31, 2021, the Company had a deferred tax asset of $95 million for foreign tax credit carryforwards.
If not utilized to reduce income tax liabilities in future periods, these foreign tax credit carryforwards will expire at various
times between 2028 and 2031. The Company estimates that $80 million of its foreign tax credit carryforward will expire
without utilization.

F-54

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

A reconciliation of unrecognized tax benefits is as follows:

Years ended December 31,
2020
2021

2019

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Additions based on tax positions related to the current year . . . . . . . . . . .
Additions for tax positions of prior years . . . . . . . . . . . . . . . . . . . . . . . . . .
Reductions for tax positions of prior years . . . . . . . . . . . . . . . . . . . . . . . . .
Lapse of statute and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

amounts in millions
83
9
1
(1)
(4)
88

75
7
7
(1)
(5)
83

70
5
14
(3)
(11)
75

As of December 31, 2021, 2020 and 2019, the Company had recorded tax reserves of $88 million, $83 million
and $75 million, respectively, related to unrecognized tax benefits for uncertain tax positions. If such tax benefits were to
be recognized for financial statement purposes, $70 million, $66 million and $61 million for the years ended December 31,
2021, 2020 and 2019, respectively, would be reflected in the Company's tax expense and affect its effective tax rate. Qurate
Retail's estimate of its unrecognized tax benefits related to uncertain tax positions requires a high degree of judgment. The
Company has tax positions for which the amount of related unrecognized tax benefits could change during 2022. The
amount of unrecognized tax benefits related to these issues could change as a result of potential settlements, lapsing of
statute of limitations and revisions of estimates. It is reasonably possible that the amount of the Company's gross
unrecognized tax benefits may increase within the next twelve months by up to $2 million.

As of December 31, 2021, the Company's tax years prior to 2018 are closed for federal income tax purposes, and
the IRS has completed its examination of the Company's 2018 and 2019 tax years, however, 2018 and 2019 remain open
until the statute of limitations lapses on October 15 of 2022 and 2023, respectively. The Company's 2020 and 2021 tax
years are being examined currently as part of the IRS's Compliance Assurance Process ("CAP") program. Various states
are currently examining the Company's prior years’ state income tax returns. The Company is not under audit in any foreign
tax jurisdictions.

The Company recorded $28 million of accrued interest and penalties related to uncertain tax positions for the year
ended December 31, 2021, $25 million for the year ended December 31, 2020 and $23 million for the year ended
December 31, 2019.

(9) Stockholders' Equity

Preferred Stock

On September 14, 2020, Qurate Retail issued its 8.0% Series A Cumulative Redeemable Preferred Stock, par
(“Preferred Stock”). There were 13,500,000 shares of Preferred Stock authorized

value $0.01 per share
and 12,627,657 shares, and 12,513,752 shares issued and outstanding at December 31, 2021 and 2020, respectively.

Priority. The Preferred Stock ranks senior to the shares of common stock of Qurate Retail, 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 common
stock of Qurate Retail.

F-55

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

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.

During the year ended December 31, 2021, the Company declared and paid four quarterly cash dividends, each
for $2.00 per share to stockholders of record of the Preferred Stock. On February 16, 2022, the Company declared a
quarterly cash dividend of $2.00 per share, which will be payable in cash on March 15, 2022 to stockholders of record of
the Preferred Stock at the close of business on February 28, 2022.

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).

F-56

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

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 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 are classified as interest expense in the consolidated statements of operations.

Common Stock

Series A Qurate Retail common stock has one vote per share, and Series B Qurate Retail common stock has ten
votes per share. Each share of the Series B common stock is exchangeable at the option of the holder for one share of
Series A common stock of the same group. The Series A and Series B common stock participate on an equal basis with
respect to dividends and distributions.

At the Annual Meeting of Stockholders held on June 2, 2015, the Company’s stockholders approved an
amendment to the Restated Certificate of Incorporation that increased (i) the total number of shares of the Company’s
capital stock which the Company will have the authority to issue to 9,015 million shares, (ii) the number of shares of the
Company’s capital stock designated as “Common Stock” to 8,965 million shares and (iii) the number of shares of Common
Stock designated as “Series A Liberty Ventures Common Stock,” “Series B Liberty Ventures Common Stock” and “Series
C Liberty Ventures Common Stock” to 400 million shares, 15 million shares and 400 million shares, respectively.

At the Annual Meeting of Stockholders held on May 23, 2018, the Company’s stockholders approved an
amendment to the Restated Certificate of Incorporation, which (i) eliminated the tracking stock capitalization structure of
the Company and (ii) reclassified each outstanding share of Series A and Series B QVC Group common stock into one
share of our Series A and Series B common stock, respectively. In addition, the amendment to the Restated Certificate of
Incorporation changed (i) the total number of shares of the Company’s capital stock which the Company will have the
authority to issue to 8,200 million shares, (ii) the number of shares of the Company’s capital stock designated as “Common
Stock” to 8,150 million shares, (iii) the number of shares of Common Stock designated as “Series A Common Stock,”
“Series B Common Stock” and “Series C Common Stock” to 4,000 million shares, 150 million shares and 4,000 million
shares, respectively, and (iv) the number of shares of the Company’s capital stock designated as “Preferred Stock” to 50
million shares.

As of December 31, 2021, Qurate Retail reserved for issuance upon exercise of outstanding stock options
approximately 42.1 million shares of Series A Qurate Retail common stock and approximately 2.2 million shares of Series
B Qurate Retail common stock.

In addition to the Series A and Series B Qurate Retail common stock, there are 4 billion shares of Series C Qurate
Retail common stock authorized for issuance, respectively. As of December 31, 2021, no shares of any Series C Qurate
Retail common stock were issued or outstanding.

Purchases of Common Stock

During the years ended December 31, 2021, 2020 and 2019, the Company repurchased 41,153,205, 6,521,782,
and 24,329,610 shares of Series A Qurate Retail common stock, respectively, for aggregate cash consideration of $435
million, $70 million, and $392 million, respectively.

All of the foregoing shares were repurchased pursuant to a previously announced share repurchase program and

have been retired and returned to the status of authorized and available for issuance.

F-57

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

(10) Related Party Transactions with Officers and Directors

Chairman Compensation Arrangement

In December 2019, Liberty Media entered into a new employment arrangement with Gregory B. Maffei, our
Chairman. The arrangement provides for a five year employment term which began on January 1, 2020 and ends
December 31, 2024, with an annual base salary of $3 million (with no contracted increase), a one-time cash commitment
bonus of $5 million (paid in December 2019), an annual target cash performance bonus of $17 million (with payment
subject to the achievement of one or more performance metrics as determined by the applicable company’s Compensation
Committee), upfront equity awards and annual equity awards (as described below).

The Chairman was entitled to receive term equity awards with an aggregate grant date fair value of $90 million
(the “Upfront Awards”) which were granted in two equal tranches. The first tranche consisted of time-vested stock options
from each of Qurate Retail, LMC, Liberty Broadband and GCI Liberty and time-vested restricted stock units (“RSUs”)
from Liberty TripAdvisor (collectively, the “2019 term awards”) that vest, in each case, on December 31, 2023 (except
Liberty TripAdvisor’s award of time-vested RSUs, which vests on December 15, 2023), subject to the Chairman’s
continued employment, except under certain circumstances. Qurate Retail’s portion of the 2019 term awards, granted in
December 2019, had an aggregate grant date fair value of $8,550,000 and consisted of stock options to purchase 2,133,697
shares of Series A Qurate Retail common stock (“QRTEA”) with an exercise price of $8.17. The second tranche of the
Upfront Awards consisted of time-vested stock options from each of LMC, Qurate Retail, Liberty Broadband and GCI
Liberty and time-vested RSUs from Liberty TripAdvisor (collectively, the “2020 term awards”) that vest, in each case, on
December 31, 2024 (except Liberty TripAdvisor’s award of time-vested RSUs, which vests on December 7, 2024), subject
to the Chairman’s continued employment, except under certain circumstances. Qurate Retail’s portion of the 2020 term
awards, granted in December 2020, had an aggregate grant date fair value of $5,850,000 and consisted of stock options to
purchase 1,190,529 QRTEA shares with an exercise price of $10.34.

The Chairman is also entitled to receive annual equity award grants with an annual aggregate grant date fair value
of $17.5 million, consisting of time-vested options, performance-based RSUs or a combination of both, at the election of
the Chairman. The annual equity awards are granted directly by Qurate Retail, LMC, Liberty Broadband and Liberty
TripAdvisor according to their applicable allocation percentage. The allocation percentage is determined based on a
combination of (1) relative market capitalizations, weighted 50%, and (2) a blended average of historical time allocation
on an LMC-wide and Chairman basis, weighted 50%, in each case, absent agreement to the contrary by Qurate Retail,
LMC, Liberty Broadband and Liberty TripAdvisor in consultation with the Chairman. The allocation percentage is then
adjusted annually and following certain events. For the years ended December 31, 2021 and 2020, the allocation percentage
for Qurate Retail was 17% and 19%, respectively. Vesting of any annual performance-based RSUs is subject to the
achievement of one or more performance metrics to be approved by the Compensation Committee of the applicable
company with respect to its respective allocable portion of the annual performance-based RSUs.

Former CEO Compensation Agreement

On September 27, 2015, the Compensation Committee of Qurate Retail approved a compensation arrangement
for our former CEO. The arrangement provided for a five year employment term beginning December 16, 2015 and ending
December 31, 2020. Effective November 17, 2020, Qurate Retail entered into an amendment to the former CEO’s
compensation arrangement that provided for a one year extension of the employment agreement dated December 16, 2015
and ended his term on December 31, 2021. For the year ended December 31, 2021, his annual base salary increased to
$1.5 million and he received an annual target cash bonus equal to 100% of his annual base salary with a maximum bonus
of 240% of base salary, subject to the achievement of performance criteria. The former CEO also received a performance-
based RSU award equal to $5.5 million of target value, with a maximum value equal to $8.3 million, and a time-vested

F-58

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

RSU award also equal to $5.5 million of value. The performance-based RSU award is subject to performance criteria as
determined by the Compensation Committee.

CEO Employment Agreement

On July 12, 2021, the Compensation Committee of the Board of Directors of Qurate Retail approved the
Company’s entry into an employment agreement with David Rawlinson II, effective July 12, 2021. Effective August 1,
2021, Mr. Rawlinson began to serve as President and Chief Executive Officer-Elect of Qurate Retail, with Mike George
continuing as Chief Executive Officer. Effective October 1, 2021, Mr. Rawlinson began to serve as President and Chief
Executive Officer of Qurate Retail, with Mr. George assuming the role of Senior Advisor. Mr. Rawlinson concurrently
assumed the same positions with QVC. Mr. George resigned from the board of directors effective January 1, 2022, at which
time Mr. Rawlinson joined the Board. With respect to his roles at Qurate Retail and QVC, Mr. George stepped down as
President effective August 1, 2021 and as Chief Executive Officer effective October 1, 2021.

Malone Stock Exchange and Maffei Arrangements

On May 18, 2021, Gregory B. Maffei, the Chairman of the Board and a director of the Company, delivered a
written offer (the “Offer”) to John C. Malone, a director of Qurate Retail, to acquire all of the outstanding shares of Series
B Qurate Retail common stock (“QRTEB”) beneficially owned by Mr. Malone, his wife Leslie Malone and certain trusts
for the benefit of Mr. Malone, Mrs. Malone and/or their children (the “Malone Group,” and such shares, the “Subject
Shares”) at a per share price of $14.00 payable in cash, securities or such other form of consideration as to which
Mr. Maffei and Mr. Malone might mutually agree. The transfer by the Malone Group of the Subject Shares was subject to
the terms of that certain call agreement, dated February 9, 1998 (the “Call Agreement”), among Qurate Retail, as successor-
in-interest to the assignee of Tele-Communications, Inc., a Delaware corporation, Mr. Malone and Mrs. Malone, which
provided Qurate Retail with the right to acquire all, but not less than all, of the Subject Shares at a per share price equal to
the lower of (x) the Offer price or (y) 110% of the average closing prices of a share of QRTEA for the 30 consecutive
trading days ending on May 17, 2021 (with the price calculated pursuant to clause (y) equal to $13.62 per share (the “Call
Price”)) (the “Call Right”). As previously disclosed, on May 18, 2021, Mr. Malone provided written notice to Qurate Retail
of his desire to accept the Offer, subject to the approval by the Board of Directors of the Company of the transactions
contemplated thereby for purposes of Section 203 of the General Corporation Law of the State of Delaware, pursuant to
the terms of the Call Agreement. However, in the event the Company determined to exercise the Call Right, Mr. Malone
indicated a preference for the payment of the per share price in the form of shares of QRTEA such that he would continue
to hold a substantial investment in the Company.

On June 2, 2021, Qurate Retail delivered written notice to Mr. Malone to exercise the Call Right and to pay the
per share Call Price required by the Call Agreement in shares of QRTEA. On June 3, 2021, the Company and the Malone
Group entered into a Stock Exchange Agreement (the “Malone Stock Exchange Agreement”) to effect the closing of the
Call Right exercise, pursuant to which the Malone Group transferred to the Company an aggregate of 27,655,931 shares
of QRTEB, and in exchange (the “Malone Exchange”), Qurate Retail issued to the Malone Group an aggregate
of 30,421,522 shares of QRTEA. Under the terms of the Call Agreement, the aggregate Call Price converts into an
equivalent ratio of 1.1 shares of QRTEA for each share of QRTEB with the aggregate number of shares of QRTEA issued
to each member of the Malone Group rounded down to the nearest whole share.

On June 3, 2021, the Company, LMC and Mr. Maffei entered into a Waiver Letter and Amendment of
Employment Agreement (the “Letter Agreement”), pursuant to which, among other things, Mr. Maffei (x) waived his rights
to assert that Qurate Retail’s exercise of the Call Right, the transactions to be consummated pursuant to the Malone Stock
Exchange Agreement or the resulting reduction in the Malone Group’s voting power with respect to Qurate
Retail (collectively, the “Specified Events”) would constitute a “Change in Control” or “Good Reason,” in each case, as

F-59

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

defined in the Executive Employment Agreement, dated as of December 13, 2019, by and between LMC and Mr. Maffei
(the “Employment Agreement”), with respect to Qurate Retail, and agreed not to terminate his employment with Qurate
Retail for “Good Reason” in connection with or arising out of the Option Cancellation (as defined below) or any of the
Specified Events, and (y) consented to the cancellation (the “Option Cancellation”) of stock option awards to purchase
shares of QRTEB that had been granted to Mr. Maffei on each of December 24, 2014, and March 31, 2015
for 1,137,228 shares at an exercise price of $16.97 per share, and 197,783 shares at an exercise price of $16.71 per share,
respectively. In consideration for the foregoing, pursuant to the Letter Agreement, (i) Mr. Maffei received a grant
of 1,101,321 restricted shares of QRTEB that are scheduled to vest, subject to Mr. Maffei’s continued employment with the
Company, in two equal tranches on December 10, 2024 and the fifth anniversary of the grant date, subject to earlier vesting
under certain circumstances, and (ii) Qurate Retail agreed that the portion of the Annual Equity Awards (as defined in the
Employment Agreement) to be granted by Qurate Retail to Mr. Maffei pursuant to Section 4.11 of the Employment
Agreement for calendar years 2022, 2023 and 2024 shall be granted with respect to the QRTEB.

Also, on June 3, 2021, the Company and Mr. Maffei also entered into a Stock Exchange Agreement (the “Maffei
Stock Exchange Agreement”) pursuant to which, among other things: (i) Mr. Maffei transferred to Qurate Retail an
aggregate of 5,378,308 shares of QRTEA, and in exchange Qurate Retail issued to Mr. Maffei an equivalent number of
shares of QRTEB; (ii) Qurate Retail agreed that on the terms and subject to the conditions of the Maffei Stock Exchange
Agreement, Mr. Maffei, at his option (during the six-month period following the vesting of the performance-based
restricted stock unit award granted to Mr. Maffei on March 10, 2021), may transfer to the Company the number of shares
of QRTEA actually received by Mr. Maffei upon vesting of such performance-based restricted stock unit award in exchange
for an equivalent number of newly-issued shares of QRTEB (the “Subsequent Exchange”); (iii) Mr. Maffei agreed that
until December 31, 2024 (the “Cap Period”), which is also the end of the current term of his employment as set forth in
the Employment Agreement, he will not, and will not authorize or permit any of his affiliates that he controls (“Controlled
Affiliates”) to, acquire or agree to acquire (or announce publicly an intent to acquire) by purchase or otherwise, beneficial
ownership of voting securities of the Company (or direct or indirect rights or options to acquire any such voting securities)
if, after giving effect to any such acquisition of securities, the aggregate voting power of the Company’s voting securities
beneficially owned by Mr. Maffei and his Controlled Affiliates would exceed 20.0% of the voting power of all of the
outstanding voting securities (assuming, for purposes of this calculation that all voting securities beneficially owned by
Mr. Maffei which are not outstanding are included in the calculation) (the “Cap”); and (iv) the foregoing transactions by
which Mr. Maffei and certain of his related persons became an “interested stockholder” were approved for purposes of
Section 203 of the General Corporation Law of the State of Delaware. The Cap is subject to certain terms and exceptions,
as described in the Maffei Stock Exchange Agreement. In addition, Mr. Maffei and his Controlled Affiliates may not
transfer voting securities of Qurate Retail to any other Controlled Affiliate of Mr. Maffei unless such transferee has agreed
to be bound by the terms of the Maffei Stock Exchange Agreement.

(11) Stock-Based Compensation

Qurate Retail - Incentive Plans

The Company has granted to certain of its directors, employees and employees of its subsidiaries, restricted stock
(“RSAs”), 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
restricted stock) 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.

F-60

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Pursuant to the Qurate Retail, Inc. 2020 Omnibus Incentive Plan (the “2020 Plan”), the Company may grant
Awards in respect of a maximum of 30.0 million shares of Qurate Retail common stock plus the shares remaining available
for Awards under the prior Qurate Retail, Inc. 2016 Omnibus Incentive Plan (the “2016 Plan”), as amended, as of close of
business on May 20, 2020, the day before the effective date of the 2020 Plan. Any forfeited shares from the 2016 Plan
shall also be available again under the 2020 Plan. Awards generally vest over 1-5 years and have a term of 7-10 years.
Qurate Retail issues new shares upon exercise of equity awards.

Qurate Retail – Grants

The following table presents the number and weighted average GDFV of options granted by Qurate Retail during

the years ended December 31, 2021, 2020 and 2019:

For the Years ended December 31,

2021

2020

2019

Options
Granted
(000's)

Weighted
Average
GDFV

Options
Granted
(000's)

Weighted
Average
GDFV

Options
Granted
(000's)

Weighted
Average
GDFV

Series A Qurate Retail common stock, QVC and HSN employees (1) . .
Series A Qurate Retail common stock, Zulily employees (1) . . . . . . . . .
Series A Qurate Retail common stock, Qurate Retail employees and
directors (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Series A Qurate Retail common stock, David Rawlinson II (3) . . . . . . . .
Series A Qurate Retail common stock, Qurate Retail Chairman of the
Board (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Series B Qurate Retail common stock, Qurate Retail Chairman of the
Board (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

895 $

6.75

4,200 $

1.96

2,503 $

79 $

6.74

618 $

1.94

328 $

63 $

6.18

747 $

4.86

639 $

1,185 $

5.02

1,191 $

4.88

2,134 $

4.07
4.08

3.97
NA

3.44

26 $

5.84

(1) Vests semi-annually over four years.

(2) Vests between two and five years for employees and in one year for directors.

(3) Vests in two equal tranches on December 31, 2023 and December 31, 2024. Grant was made in connection with

Mr. Rawlinson’s employment agreement (see note 10).

(4) The grants made in December 2020 and December 2019 in connection with the Chairman’s new employment
agreement cliff vest in December 2024 and December 2023, respectively. The grant made in March 2019 vested
immediately and was made in connection with the Chairman’s previous employment agreement (see notes 1 and 10).

During the years ended December 31, 2021, 2020 and 2019, Qurate Retail granted to employees and directors 6.0
million, 10.1 million and 3.5 million RSUs of QRTEA, respectively, which RSUs have a weighted average GDFV of
$11.98, $4.78 and $15.47 per share, respectively, and generally vest annually over four years. In addition to the stock
option grants to the Qurate Retail Chairman of the Board, and in connection with his employment agreement, Qurate Retail
granted time-based and performance-based RSUs. During the years ended December 31, 2021 and 2020, Qurate Retail
granted to our Chairman 229 thousand and 584 thousand performance-based RSUs, respectively, of QRTEA. Such RSUs
had a GDFV of $12.90 per share and $4.44 per share, respectively, at the time they were granted. During the year ended
December 31, 2019, Qurate Retail granted 194 thousand performance-based RSUs of QRTEB to our Chairman. Such
RSUs had a GDFV of $17.90 per share at the time they were granted. The 2021, 2020 and 2019 performance-based RSUs
granted to our Chairman vest one year from the month of grant, subject to the satisfaction of certain performance objectives
and based on an amount determined by the compensation committee. As a result of the Letter Agreement discussed in

F-61

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Note 10, during the year ended December 31, 2021, Qurate Retail granted 1.1 million time-based RSAs of QRTEB to our
Chairman, which RSAs have a GDFV of $13.65 per share and vest in two equal tranches on December 10, 2024 and
June 3, 2026, subject to earlier vesting under certain circumstances. During the year ended December 31, 2020, Qurate
Retail granted 38 thousand time-based RSUs of QRTEA to our Chairman, which RSUs had a GDFV of $7.44 per share
and cliff vested on December 10, 2020. This RSU grant was issued in lieu of our Chairman receiving 50% of his remaining
base salary for the last three quarters of calendar year 2020, and he waived his right to receive the other 50%, in each case,
in light of the ongoing financial impact of COVID-19. During the year ended December 31, 2019, Qurate Retail granted
19 thousand time-based RSUs of QRTEB to our Chairman. Such RSUs had a GDFV of $17.90 per share at the time they
were granted and cliff vested on March 11, 2019.

During the year ended December 31, 2021, Qurate Retail granted 684 thousand time-based RSUs of QRTEA to
Mike George. Such RSUs had a weighted average GDFV of $12.84 per share at the time they were granted and mainly
cliff vested on December 10, 2021. Also during the years ended December 31, 2021, 2020 and 2019, Qurate Retail granted
approximately 423 thousand, 725 thousand and 191 thousand performance-based RSUs, respectively, of QRTEA to
Mr. George. Such RSUs had a GDFV of $12.90, $4.44 and $17.90 per share, respectively, at the time they were granted.
The 2021, 2020 and 2019 performance-based RSUs granted to Mr. George cliff vest one year from the month of grant,
subject to the satisfaction of certain performance objectives and based on an amount determined by the compensation
committee.

Also during the year ended December 31, 2021, Qurate Retail granted 509 thousand time-based RSUs and 143
thousand performance-based RSUs of QRTEA to Mr. Rawlinson in connection with his employment agreement. Both the
time-based and performance-based QRTEA RSUs had a GDFV of $10.50 per share at the time they were granted. The
time-based RSUs vest over three years, and the performance-based RSUs cliff vest in March 2022, subject to the
satisfaction of certain performance objectives and based on an amount determined by the compensation committee.
Performance objectives, which are subjective, are considered in determining the timing and amount of the compensation
expense recognized. As 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.

During the fourth quarter of 2021 and in connection with the November Special Dividend, holders of QRTEA or
QRTEB (together, “QRTEA/B”) RSAs and RSUs outstanding at the close of business on the record date received a special
cash dividend in the amount of $1.25 per share for each QRTEA/B RSA or RSU so held (“November Cash Dividend”).

The November Cash Dividend for RSA holders was paid upon distribution. The November Cash Dividend for

RSU holders is subject to the same vesting schedules as those applicable to the corresponding original QRTEA RSUs.

Also in connection with the November Special Dividend, outstanding stock options and stock appreciation rights
(“SARs”) to purchase shares of QRTEA/B on the record date were adjusted pursuant to the anti-dilution provisions of the
incentive plans under which the stock options and SARs were granted. The adjustment to the exercise price and the number
of shares subject to the original stock option or SAR award preserved:

ii.

the pre-November Special Dividend intrinsic value of the original QRTEA/B stock option or SAR, and

the pre-November Special Dividend ratio of the exercise price to the market price of the corresponding
original QRTEA/B stock option or SAR.

F-62

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

During the third quarter of 2020 and in connection with the Special Dividend, holders of RSAs and RSUs of

QRTEA outstanding at the close of business on the record date received:

ii.

a special cash dividend in the amount of $1.50 per share for each QRTEA RSA and RSU so held (“Cash
Dividend”), and

a special dividend of 0.03 shares of newly issued Preferred Stock (“QRTEP”) for each QRTEA RSA and
RSU so held, with cash distributed in lieu of fractional shares (“Preferred Stock Dividend”). The
Preferred Stock Dividend related to QRTEA RSAs and RSUs was issued in the form of QRTEP RSAs
and RSUs, corresponding to the original grant of either RSAs or RSUs.

The Cash Dividend for RSA holders was paid upon distribution. The Cash Dividend for RSU holders along with
the QRTEP RSAs and RSUs are subject to the same vesting schedules as those applicable to the corresponding original
QRTEA RSAs and RSUs.

Also in connection with the Special Dividend, outstanding stock options and SARs to purchase shares of
QRTEA/B on the record date were adjusted pursuant to the anti-dilution provisions of the incentive plans under which the
stock options and SARs were granted. The adjustment to the exercise price and the number of shares subject to the original
stock option or SAR award was calculated in the same manner as the November Special Dividend discussed above.

During the fourth quarter of 2020 and in connection with the December Special Dividend, holders of QRTEA
RSAs and RSUs outstanding at the close of business on the record date received a special cash dividend in the amount of
$1.50 per share for each QRTEA RSA or RSU so held (“December Cash Dividend”).

The December Cash Dividend for RSA holders was paid upon distribution. The December Cash Dividend for

RSU holders is subject to the same vesting schedules as those applicable to the corresponding original QRTEA RSUs.

Also in connection with the December Special Dividend, outstanding stock options and SARs to purchase shares
of QRTEA/B on the record date were adjusted pursuant to the anti-dilution provisions of the incentive plans under which
the stock options and SARs were granted. The adjustment to the exercise price and the number of shares subject to the
original stock option or SAR award was calculated in the same manner as the November Special Dividend discussed above.

The Company has calculated the GDFV for all of its equity classified awards using the Black-Scholes-Merton
Model. The Company estimates the expected term of the Awards based on historical exercise and forfeiture data. For
grants made in 2021, 2020 and 2019, the range of expected terms was 5.3 to 6.3 years. The volatility used in the calculation
for Awards is based on the historical volatility of the Company's stocks and the implied volatility of publicly traded Qurate
Retail options. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that
of the subject options

The following table presents the range of volatilities used by Qurate Retail in the Black-Scholes-Merton Model

for the 2021, 2020 and 2019 Qurate Retail grants.

Volatility

2021 grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020 grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

53.7 % - 57.1 %
46.8 % - 54.8 %
30.1 % - 44.8 %

F-63

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Qurate Retail - Outstanding Awards

The following table presents the number and weighted average exercise price ("WAEP") of Awards 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 Awards.

Qurate Retail

Series A
Weighted Aggregate
intrinsic
average
remaining
value
life

Series B
Weighted Aggregate
average
remaining
life

intrinsic
value
(in millions)

Outstanding at January 1, 2021 . . . . . . . . . . . . . 40,553

Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited/Cancelled . . . . . . . . . . . . . . . . . . . .
November Special Dividend adjustment . . . . .
Outstanding at December 31, 2021 . . . . . . . . . .
Exercisable at December 31, 2021 . . . . . . . . . . .

Awards
(000's) WAEP

$ 10.61
2,222 $ 11.63
(2,822) $ 5.60
(3,899) $ 12.76
6,056 $ 9.24
42,110 $ 9.23
25,249 $ 11.80

Awards

3,243

(in millions) (000's) WAEP
$ 15.39
—
—
(1,335) $ 16.93
313 $ 12.33
2,221 $ 12.25
2,221 $ 12.25

— $
— $

58
10

3.4 years $
2.2 years $

1.8 years $
1.8 years $

—
—

As of December 31, 2021, the total unrecognized compensation cost related to unvested Qurate Retail Awards
was approximately $119 million. Such amount will be recognized in the Company's consolidated statements of operations
over a weighted average period of approximately 1.8 years.

As of December 31, 2021, Qurate Retail reserved 44.3 million shares of Series A and Series B common stock

for issuance under exercise privileges of outstanding stock Awards.

Qurate Retail - Exercises

The aggregate intrinsic value of all options exercised during the years ended December 31, 2021, 2020 and 2019

was $19 million, $7 million and $2 million, respectively.

Qurate Retail - Restricted Stock and Restricted Stock Units

The Company has approximately 12.9 million, 1.1 million and 188 thousand unvested RSAs and RSUs of
QRTEA, QRTEB and QRTEP, respectively, held by certain directors, officers and employees of the Company as of
December 31, 2021. The QRTEA and QRTEB unvested RSAs and RSUs have a weighted average GDFV of $9.41 per
share and $13.65 per share, respectively, and 155 thousand of the QRTEP unvested RSUs have an incremental cost of
$48.99 per share.

The aggregate fair value of all QRTEA, QRTEB and QRTEP RSAs and RSUs that vested during the years ended

December 31, 2021, 2020 and 2019 was $95 million, $17 million and $25 million, respectively.

(12) Employee Benefit Plans

Subsidiaries of Qurate Retail sponsor 401(k) plans, which provide their employees an opportunity to make
contributions to a trust for investment in Qurate Retail common stock, as well as other mutual funds. The Company's
subsidiaries make matching contributions to their plans based on a percentage of the amount contributed by employees.

F-64

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

Employer cash contributions to all plans aggregated $30 million, $28 million and $25 million for the years ended
December 31, 2021, 2020 and 2019, respectively.

(13) Other Comprehensive Earnings (Loss)

Accumulated other comprehensive earnings (loss) included in the Company’s consolidated balance sheets and
consolidated statements of equity reflect the aggregate of foreign currency translation adjustments, comprehensive
earnings (loss) attributable to debt credit risk adjustments and the Company's share of accumulated other comprehensive
earnings of affiliates.

The change in the components of accumulated other comprehensive earnings (loss), net of taxes ("AOCI"), is

summarized as follows:

Foreign
currency
translation

Comprehensive
Share of Earnings (loss)
AOCI
Attributable to
of equity Debt Credit Risk

adjustments affiliates Adjustments Other AOCI

amounts in millions

Balance at January 1, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

(180)

(5)

(55)

Other comprehensive earnings (loss) attributable to Qurate
Retail, Inc. stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at December 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other comprehensive earnings (loss) attributable to Qurate
Retail, Inc. stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at December 31, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . $

Other comprehensive earnings (loss) attributable to Qurate
Retail, Inc. stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at December 31, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . $

(1)
(181)

111
(70)

(113)
(183)

—
(5)

2
40

17
57

(1)
91

—
(55)

(1)
90

127
72

(36)
21

(2)
88

(151)
(79)

F-65

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

The components of other comprehensive earnings (loss) are reflected in Qurate Retail's consolidated statements
of comprehensive earnings (loss) net of taxes. The following table summarizes the tax effects related to each component
of other comprehensive earnings (loss).

Tax

Before-tax
amount

(expense) Net-of-tax
benefit
amounts in millions

amount

Year ended December 31, 2021:
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Recognition of previously unrealized losses (gains) on debt, net . . . . . . . . . . . . . . . . .
Comprehensive earnings (loss) attributable to debt credit risk adjustments . . . . . . . . .

Other comprehensive earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

Year ended December 31, 2020:
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Recognition of previously unrealized losses (gains) on debt, net . . . . . . . . . . . . . . . . .
Comprehensive earnings (loss) attributable to debt credit risk adjustments . . . . . . . . .

Other comprehensive earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

Year ended December 31, 2019:
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Recognition of previously unrealized losses (gains) on debt, net . . . . . . . . . . . . . . . . .
Comprehensive earnings (loss) attributable to debt credit risk adjustments . . . . . . . . .

Other comprehensive earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

(124)
(3)
(42)
(169)

115
(1)
22
136

—
(1)
1
—

(4)
2
6
4

3
—
(5)
(2)

1
—
—
1

(128)
(1)
(36)
(165)

118
(1)
17
134

1
(1)
1
1

(14) Commitments and Contingencies

Litigation

Qurate Retail 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
consolidated financial statements.

Fire at Rocky Mount Fulfillment Center

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 for QxH and QVC’s primary returns center for hard goods.

QVC maintains property, general liability and business interruption insurance coverage. Based on the provisions
of QVC's insurance policies, it has determined that recovery of certain fire related costs incurred as of December 31, 2021
is probable and recorded $229 million of insurance recoveries. During the year ended December 31, 2021, QVC received
$100 million of insurance proceeds, representing an advance of funds. As a result, the insurance receivable balance was
$129 million as of December 31, 2021 and was recorded in other receivables, which is included in Trade and other
receivables, net in the Consolidated Balance Sheet.

F-66

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

is currently being assessed for damage and is included in Inventories in the consolidated balance sheet as of December 31,
2021. QVC anticipates any additional inventory losses will be covered by its insurance policies. QVC expects to continue
to record additional costs and recoveries until the property and inventory assessment is completed and the insurance claim
is fully settled.

Certain incremental costs incurred to date related to the fire and related insurance recovery for the year ended
December 31, 2021 are as follows (amounts in millions):

Loss on inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Loss on fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other fire related costs (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance recoveries received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected insurance recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fire related costs, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

134
87
29
250
(100)
(129)
21

(1) Amount includes $21 million of costs that will not be reimbursed by QVC's insurance policies, primarily

related to personnel costs.

(15) 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 on-line commerce industries. Qurate Retail identifies its reportable segments as (A) those consolidated
subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA 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 segment presentation for prior periods has been conformed to the current period segment presentation.

Qurate Retail evaluates performance and makes decisions about allocating resources to its operating segments
based on financial measures such as revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units
shipped and revenue or sales per customer equivalent. In addition, Qurate Retail reviews nonfinancial measures such as
unique website visitors, conversion rates and active customers, as appropriate.

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 all stock-based compensation and
transaction related costs). 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, certain purchase accounting
adjustments, separately reported litigation settlements, transaction related costs (including restructuring, integration, and
advisory fees), and impairment charges that are included in the measurement of operating income pursuant to GAAP.
Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net
income, cash flow provided by operating activities and other measures of financial performance prepared in accordance
with 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.

F-67

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

For the year ended December 31, 2021, Qurate Retail has identified the following consolidated subsidiaries as its

reportable segments:

• QxH– QVC U.S. and HSN market and sell a wide variety of consumer products in the United States, 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.

• Zulily – Zulily markets and sells a wide variety of consumer products in the United States and several foreign

countries through flash sales events, primarily through its app, mobile and desktop experiences.

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 that are also consolidated subsidiaries are the same as those described in the
Company's summary of significant accounting policies.

Performance Measures

2021

Years ended December 31,
2020

2019

QxH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,277
3,077
QVC International . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Zulily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,453
Corporate and other . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,238
Inter-segment eliminations . . . . . . . . . . . . . . . . . . . . . . .
(1)
Consolidated Qurate Retail . . . . . . . . . . . . . . . . . . . . . $ 14,044

Other Information

Revenue

Adjusted
OIBDA

Revenue

Adjusted
OIBDA
amounts in millions
8,505
2,967
1,636
1,070
(1)
2,080 14,177

1,547
510
83
58
—

1,439
562
(12)
91
—

8,277
2,709
1,571
901
—
2,198 13,458

Adjusted
OIBDA

1,536
446
48
(1)
—
2,029

December 31, 2021

December 31, 2020

Total
assets

Capital
expenditures

Total
assets

Capital

expenditures

QxH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
QVC International . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Zulily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate and other . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consolidated Qurate Retail . . . . . . . . . . . . . . . . . . . . . $

12,337
2,226
654
1,032
16,249

amounts in millions

169
41
20
14
244

12,393
2,455
1,049
1,102
16,999

182
36
23
16
257

F-68

QURATE RETAIL, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2021, 2020 and 2019

The following table provides a reconciliation of consolidated segment Adjusted OIBDA to operating income and

earnings (loss) from continuing operations before income taxes:

Years ended December 31,
2019
2021

2020

amounts in millions

Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fire related costs, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction related costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets and long lived assets . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share of earnings (loss) of affiliates, net . . . . . . . . . . . . . . . . . . . . . . .
Realized and unrealized gains (losses) on financial instruments, net .
Gains (losses) on transactions, net . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax sharing income (expense) with Liberty Broadband . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consolidated segment Adjusted OIBDA . . . . . . . . . . . . . . . . . . . . . . . . $ 2,080 2,198
(64)
(72)
(562)
(537)
—
(21)
—
—
—
(363)
1,087 1,572
(408)
(468)
(156)
(94)
(110)
99
224
10
(39)
10
(32)
(6)
Earnings (loss) from continuing operations before income taxes . . . . . $ 638 1,051

2,029
(71)
(606)
—
(1)
(1,167)
184
(374)
(160)
(251)
(1)
(26)
6
(622)

Revenue by Geographic Area

The following table summarizes net revenue generated by subsidiaries located within the identified geographic

areas:

2021

Years ended December 31,
2020
amounts in millions

2019

United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,864
1,167
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Germany. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,027
Other foreign countries . . . . . . . . . . . . . . . . . . . . . . . . . . .
986
$ 14,044

11,119
1,132
978
948
14,177

10,666
1,028
890
874
13,458

Long-lived Assets by Geographic Area

United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other foreign countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

721
123
133
100
$ 1,077

893
149
150
108
1,300

December 31,

2020
2021
amounts in millions

F-69

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

December 31, 2021

(unaudited)

amounts in millions

Qurate Retail Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Reconciling items:

Zulily, LLC ("Zulily") net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cornerstone Brands, Inc. ("Cornerstone") net assets (1) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity investment in Cornerstone held by Liberty LLC (1) . . . . . . . . . . . . . . . . . . . . . . . . .
Tax sharing agreement with GCI Liberty, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preferred Stock liability (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preferred restricted stock unit liability (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued preferred dividends payable (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liberty LLC Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qurate Retail Net Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reconciling items:

Zulily net (earnings) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cornerstone net (earnings) loss (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cornerstone equity method investment share of earnings (loss) . . . . . . . . . . . . . . . . . . . . .
GCI Liberty, Inc. tax sharing expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued preferred dividends payable (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liberty LLC Net Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,030

(218)
(193)
76
86
1,261
46
5
4,093

421

412
(80)
30
(10)
101
874

(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 “Cornerstone”) 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 Cornerstone and accounts for its ownership in Cornerstone 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 consolidated balance sheets.

F-70

ELECTRONIC DELIVERY

OUR ENVIRONMENT

We encourage Qurate Retail stockholders to voluntarily elect to receive future

Qurate Retail believes in working to keep our environment cleaner and healthier. We are

proxy and annual report materials electronically.

proud to have our headquarters overlooking the Colorado Rockies. Every day, Qurate Retail

•

If you are a registered stockholder, please visit

www.proxyvote.com for simple instructions.

• Beneficial shareowners can elect to receive future

proxy and annual report materials electronically as

well as vote their shares online at www.proxyvote.com.

> Faster > Economical > Cleaner > Convenient

SCAN THE QR CODE

to vote using your mobile device, sign up for

e-delivery or download annual meeting materials.

2022 ANNUAL MEETING OF STOCKHOLDERS

Tuesday, June 14, 2022

8:15 a.m. Mountain Time

The 2022 Annual Meeting of Stockholders
will be held via the Internet as a virtual meeting.
See our Proxy Statement for additional information.

takes steps to preserve the natural beauty of the surroundings that we are privileged to

enjoy.

Qurate Retail’s initiative in reducing its carbon footprint by promoting electronic delivery

of shareholder materials has had a positive effect on the environment. Based upon 2021

statistics, voluntary receipt of e-delivery resulted in the following environmental savings:

Using approximately 70.4 fewer tons of wood,

or 422 fewer trees

Using approximately 449 million fewer BTUs,

or the equivalent of the amount of energy used

by 535 refrigerators

Using approximately 317,000 fewer pounds

of greenhouse gases, including carbon dioxide,

or the equivalent of 28.8 automobiles running

for 1 calendar year

Saving approximately 377,000 gallons of water, or the equivalent of

approximately 17 swimming pools

Saving approximately 20,800 pounds of solid waste

Reducing hazardous air pollutants by approximately 28.1 pounds

Environmental impact estimates calculated using the Environmental Paper Network Paper

Calculator. For more information visit

www.papercalculator.org.

12300 Liberty Boulevard
Englewood, CO 80112
Phone: + (720) 875-5300
Email: investor@qurateretail.com

W W W. Q U R ATE R E TAI L . C O M