Orbitz 2008 Annual Report Download - page 121

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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
16. Related Party Transactions (Continued)
Realogy Corporation ("Realogy") provided us with media planning and advertising buying services. We paid advertising costs directly to the third-party
vendors; however, we also paid Realogy a fee for access to these vendors.
Wright Express Agreement
In February 2005, Cendant completed the initial public offering of 100% of the outstanding common stock of its wholly owned Wright Express subsidiary.
We are a party to an agreement with Wright Express where we can participate in a MasterCard rotating account program. Under this agreement, we may
participate in the program for our purchasing needs, particularly for our online reservation systems. Wright Express earns money from the interchange rate a
vendor is charged for all purchases made on any rotating account, and Wright Express pays us a rebate based upon our purchase volume.
Corporate Travel Agreements
We provide Cendant, Wyndham Worldwide Corporation ("Wyndham"), Avis Budget Group and Realogy with corporate travel management services. The
agreements have an initial term of three years, unless terminated earlier by either party in accordance with the terms of the agreement.
Vendor, Partner Marketing and White Label and Hosting Agreements
In the normal course of conducting business, we have entered into various agreements with Wyndham and Avis Budget Group, both of which were affiliates
of Cendant. We believe that these agreements have been executed on terms comparable to those of unrelated third parties and include the following:
•
vendor agreements that provide us access to their products and services for distribution on our various websites;
•
partner marketing agreements provide for the promotion of Wyndham and Avis Budget Group products and services on our various
websites; and
•
white label and hosting agreements pursuant to which we host various white label websites that incorporate their design elements and allow
for the booking of air, car and hotel packages.
17. Segment Information
We determine operating segments based on how our chief operating decision maker manages the business, including making operating decisions and
evaluating operating performance. We operate in one segment and have one reportable segment as defined by SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information."
114
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008