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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
Description of the Business
Orbitz, Inc. ("Orbitz") was formed in early 2000 by American Airlines, Inc., Continental Airlines, Inc., Delta Air Lines, Inc., Northwest Airlines, Inc. and
United Air Lines, Inc. (the "Founding Airlines"). In November 2004, Orbitz was acquired by Cendant Corporation ("Cendant"), whose online travel businesses
included the CheapTickets, HotelClub and RatesToGo brands. In February 2005, Cendant acquired ebookers, an international online travel brand with operations
in 13 countries throughout Europe. On August 23, 2006, Travelport Limited ("Travelport"), which consisted of Cendant's travel services businesses, including the
businesses that currently comprise Orbitz Worldwide, Inc., was acquired by affiliates of The Blackstone Group ("Blackstone") and Technology Crossover
Ventures ("TCV"). We refer to this acquisition as the "Blackstone Acquisition."
Orbitz Worldwide, Inc. was incorporated in Delaware on June 18, 2007 and was formed to be the parent company of Orbitz, ebookers and Travel
Acquisition Corporation Pty. Ltd. ("HotelClub," formerly known as Flairview Travel) and the related subsidiaries and affiliates of those businesses. We are the
registrant as a result of the completion of our initial public offering ("IPO") of 34,000,000 shares of our common stock on July 25, 2007. At December 31, 2007,
Travelport and its affiliates beneficially owned approximately 59% of our outstanding common stock.
We are a leading global online travel company that uses innovative technology to enable leisure and business travelers to research, plan and book a broad
range of travel products. Our brand portfolio includes Orbitz, CheapTickets, the Away Network, and Orbitz for Business in the Americas; ebookers in Europe;
and HotelClub and RatesToGo based in Sydney, Australia, which has operations globally. We provide customers with the ability to book a comprehensive set of
travel products from over 85,000 suppliers worldwide, including air travel, hotels, vacation packages, car rentals, cruises, travel insurance and destination
services such as ground transportation, event tickets and tours. We have an efficient, customized and user-friendly system that enables all bookings to occur
online.
Basis of Presentation
The accompanying consolidated financial statements primarily consist of the business-to-consumer travel businesses of Travelport, which have been carved
out of the Travelport operations. The financial statements present the accounts of Orbitz, ebookers and HotelClub and the related subsidiaries and affiliates of
those businesses, collectively doing business as Orbitz Worldwide, Inc. These entities operated as indirect, wholly-owned subsidiaries of Travelport prior to the
IPO. These entities became wholly-owned subsidiaries of ours as part of an intercompany restructuring that was completed on July 18, 2007 (the
"Reorganization") in connection with the IPO. Travelport is beneficially owned by affiliates of Blackstone, TCV and One Equity Partners.
Prior to the IPO, we had not operated as an independent standalone company. As a result, our consolidated financial statements have been carved out of the
historical financial statements of Cendant for the period prior to the Blackstone Acquisition and the historical financial statements of Travelport for the period
subsequent to the Blackstone Acquisition. In connection with the Blackstone Acquisition, the carrying values of our assets and liabilities were revised to reflect
their fair values as of August 23, 2006, based upon an allocation of the overall purchase price of Travelport to the underlying net assets of the various Travelport
affiliates acquired.
68
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008