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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
18. Quarterly Financial Data (Unaudited) (Continued)
Three Months Ended
December 31, 2007
Successor
Period from
July 18, 2007 to
September 30, 2007
Successor
(in millions, except per share data)
Net (loss) $ (11) $ (31)
Basic and diluted (loss) per share $ (0.13) $ (0.38)
Three Months Ended
Period from
Three Months Ended
December 31, 2006
Successor
August 23, 2006 to
September 30, 2006
Successor
July 1, 2006 to
August 22, 2006
Predecessor
June 30, 2006
Predecessor
March 31, 2006
Predecessor
(in millions)
Net revenue $ 179 $ 63 $ 121 $ 207 $ 182
Cost and expenses 178 79 107 316 190
Operating income
(loss) 1 (16)
14 (109) (8)
Net (loss) income (5) (20) 11 (116) (16)
19. Restatement
Subsequent to the issuance of our consolidated financial statements for the year ended December 31, 2007, we determined that we should restate our
previously issued consolidated financial statements for errors relating to (1) the non-cash impact of certain intercompany transactions with Travelport in our
consolidated statements of cash flows and (2) the classification of certain credit card receipts in-transit in our consolidated balance sheets. As a result, we are
restating our previously issued consolidated statements of cash flows for the year ended December 31, 2007, the period from August 23, 2006 to December 31,
2006, the period from January 1, 2006 to August 22, 2006 and the year ended December 31, 2005 and our previously issued consolidated balance sheet as of
December 31, 2006 to correct these errors.
We determined that the non-cash impact of certain intercompany transactions with Travelport was overstated in "Net cash provided by operating activities"
and correspondingly understated in "Net cash used in financing activities" in our consolidated statement of cash flows for the year ended December 31, 2007.
In addition, we determined that credit card receipts in-transit at our foreign operations (which are generally collected within two to three days) should have
been classified as "Accounts receivable" rather than "Cash and cash equivalents" in our consolidated balance sheet as of December 31, 2006. This change in
classification is consistent with our presentation of credit card receipts in-transit at our domestic operations and resulted in a reduction in "Cash and cash
equivalents" and an increase in "Accounts receivable" of $10 million in our consolidated balance sheet as of December 31, 2006. This reclassification also
impacted "Net cash provided by operating activities" in our consolidated statements of cash flows for the year ended December 31, 2007, the period from
August 23, 2006 to December 31, 2006 and the period from January 1, 2006 to August 22, 2006 and "Net cash (used in) investing activities" in our consolidated
statement of cash flows for the year ended December 31, 2005. The purchase price allocation previously disclosed for the Blackstone Acquisition and Cendant's
acquisition
116
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008