Orbitz 2008 Annual Report Download - page 6

Explanatory Note
Orbitz Worldwide, Inc. is filing this amendment to its Annual Report on Form 10-K for the year ended December 31, 2007, originally filed on March 21,
2008 (the "Original Filing"), to amend and restate its consolidated financial statements as of December 31, 2006 and 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.
Subsequent to the Original Filing, 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 in this Form 10-K/A 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" 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.
Refer to Note 19—Restatement of the Notes to the Consolidated Financial Statements for further discussion of this restatement.
The following sections of this Form 10-K/A have been amended to reflect the restatement: Part II—Item 6—Selected Financial Data, Part II—Item
7—Management's Discussion and Analysis of Financial Condition and Results of Operations, Part II—Item 8—Financial Statements and Supplementary Data,
Part II—Item 9A(T)—Controls and Procedures, and Part IV—Item 15—Exhibits, Financial Statement Schedules.
For the convenience of the reader, this Form 10-K/A sets forth the Original Filing in its entirety, as amended by, and to reflect, the restatement. Except to
the extent required to reflect the effects of the restatement described above, this Form 10-K/A continues to describe conditions as of the Original Filing, and does
not update disclosures contained herein to reflect events that occurred after the Original Filing. Accordingly, this Form 10-K/A should be read in conjunction
with our filings made with the Securities and Exchange Commission subsequent to the Original Filing.
New certifications of our principal executive officer and principal financial officer are included as exhibits to this Form 10-K/A.
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008