Orbitz 2008 Annual Report Download - page 89

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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. Property and Equipment, Net
Property and equipment, net, consisted of the following:
Successor
December 31, 2007
December 31, 2006
(in millions)
Capitalized software $ 149 $ 84
Furniture, fixtures and equipment 60 44
Building and leasehold improvements 15 21
Construction in progress 7 28
Gross property and equipment 231 177
Less: accumulated depreciation and amortization (47) (11)
Property and equipment, net $ 184 $ 166
In July 2007, we placed the first phase of our new global technology platform into service. As a result, construction in progress costs of $42 million were
transferred to the applicable property and equipment category, primarily capitalized software, in the consolidated balance sheet.
For the year ended December 31, 2007 and for the periods August 23, 2006 to December 31, 2006 and January 1, 2006 to August 22, 2006 and for the year
ended December 31, 2005, we recorded depreciation and amortization expense related to property and equipment in the amount of $37 million, $11 million,
$32 million and $65 million, respectively.
The gross amount of assets subject to capital leases at December 31, 2007 and December 31, 2006 was $4 million and $5 million, respectively. Assets
subject to capital leases are included in furniture, fixtures and equipment. The accumulated amortization of assets subject to capital leases was $3 million and
$2 million at December 31, 2007 and December 31, 2006, respectively. The corresponding amortization expense is included in depreciation and amortization
expense in the consolidated statements of operations. As of December 31, 2007 and December 31, 2006, we had a liability of $1 million and $3 million under our
capital leases, respectively. The remaining liability at December 31, 2007 is due in 2008.
5. Goodwill and Intangible Assets
Goodwill and indefinite-lived intangible assets consisted of the following:
Successor
December 31, 2007
December 31, 2006
(in millions)
Goodwill and Indefinite-Lived Intangible Assets:
Goodwill $ 1,181 $ 1,190
Trademarks and trade names 313 311
82
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008