Orbitz 2008 Annual Report Download - page 53

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years ended December 31, 2007 and 2006, $15 million and $27 million of the total interest expense recorded was non-cash, respectively.
Provision for Income Taxes
We recorded a tax provision of $43 million for the year ended December 31, 2007 and $2 million for the year ended December 31, 2006. The increase in our
provision for income taxes was primarily due to a valuation allowance established against $30 million of foreign net operating loss carryforwards, net of tax,
related to portions of our U.K.-based business (see Note 11–Income Taxes of the Notes to Consolidated Financial Statements).
Comparison of the year ended December 31, 2006 to the year ended December 31, 2005
Year Ended December 31,
2006
Combined
2005
Predecessor
$
Change
%
Change
(in millions)
Net revenue
Air $ 355 $ 319 $ 36 11%
Non-air and other 397 367 30 8%
Total net revenue 752 686 66 10%
Cost and expenses
Cost of revenue 113 101 12 12%
Selling, general and administrative 303 293 10 3%
Marketing 277 224 53 24%
Depreciation and amortization 55 78 (23) (29)%
Impairment of goodwill and intangible assets 122 400 (278) (70)%
Total operating expenses 870 1,096 (226) (21)%
Operating loss (118) (410) 292 (71)%
Other (expense) income
Interest expense, net (27) (22) (5) 23%
Other income, net 1 2 (1) (50)%
Total other (expense) (26) (20) (6) 30%
Loss before income taxes and minority interest (144) (430) 286 (67)%
Provision (benefit) for income taxes 2 (42) 44 (105)%
Minority interest, net of tax — — — —
Net loss $ (146) $ (388) $ 242 (62)%
As a percent of net revenue
Cost of revenue 15% 15%
Selling, general and administrative expenses 40% 43%
Net Revenue
Net revenue increased $66 million, or 10%, to $752 million for the year ended December 31, 2006 from $686 million for the year ended December 31,
2005. As a result of the Blackstone Acquisition, our net revenue during the third and fourth quarters of 2006 was reduced, and as a result of Cendant's acquisition
of Orbitz in 2004, our net revenue during 2005 was also reduced. These reductions occurred because deferred revenue was written off at the time of the
acquisitions and therefore we could not
46
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008