Orbitz 2008 Annual Report Download - page 90

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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. Goodwill and Intangible Assets (Continued)
The changes in the carrying amount of goodwill are as follows:
Amount
(in millions)
Predecessor:
Balance at December 31, 2005 $ 1,395
Impairment(a) (115)
Impact of foreign currency translation and other 11
Balance at August 22, 2006 $ 1,291
Successor:
Balance at August 23, 2006 and December 31, 2006(b) $ 1,190
Adjustments to goodwill acquired during 2006(c):
Tax sharing liability(d) (8)
Other(e) (7)
Impact of foreign currency translation(f) 6
Balance at December 31, 2007 $ 1,181
(a)
This amount represents a goodwill impairment charge which is further described in Note 2—Summary of Significant Accounting
Policies.
(b)
The assets acquired and liabilities assumed in connection with the Blackstone Acquisition were recorded at their relative fair
values on the date of acquisition, August 23, 2006, in accordance with SFAS No. 141, "Business Combinations." As of
August 23, 2006 and December 31, 2006, $1,190 million of the purchase price was allocated to goodwill (see
Note 3—Acquisitions).
(c)
During the third quarter of 2007, we finalized the purchase price allocations for the Blackstone Acquisition.
(d)
This amount represents adjustments to goodwill related to the refinement of certain estimates, including the applicable tax rate
and period of payment, previously used to determine the net present value of the tax sharing liability as of the date of the
Blackstone Acquisition (see Note 8—Tax Sharing Liability).
(e)
This amount represents other adjustments to goodwill related to purchase price allocations, including the refinement of the fair
value of assets acquired and liabilities assumed.
(f)
Upon finalization of the purchase price allocation for the Blackstone Acquisition, we allocated goodwill among our subsidiaries,
including certain international affiliates. As a result, our goodwill is impacted by foreign currency translation.
83
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008