Orbitz 2009 Annual Report Download - page 104

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The table below summarizes our activity under the Travelport Plan during 2007, immediately prior to the
conversion date, and the year ended December 31, 2006:
Number
of
Shares
Weighted
Average
Grant Date
Fair Value
(per share)
Number
of
Shares
Weighted
Average
Grant Date
Fair Value
(per share)
Number
of
Shares
Weighted
Average
Grant Date
Fair Value
(per share)
Number
of
Shares
Weighted
Average
Grant Date
Fair Value
(per share)
Class A-2 Class B Class C Class D
Restricted Equity
Units Partnership Interest
Balance at August 22, 2006 . . . . . . . — — — — — — — —
Granted . . . . . . . . . . . . . . . . . . . . . 5,367,234 $1.00 1,103,501 $0.49 1,103,501 $0.43 1,103,501 $0.38
Balance at December 31, 2006 . . . . . 5,367,234 $1.00 1,103,501 $0.49 1,103,501 $0.43 1,103,501 $0.38
Granted . . . . . . . . . . . . . . . . . . . . . 230,881 $1.84 99,863 $0.67 99,863 $0.65 99,863 $0.56
Balance immediately prior to
conversion date . . . . . . . . . . . . . . 5,598,115 $1.03 1,203,364 $0.50 1,203,364 $0.45 1,203,364 $0.39
During 2007, prior to the conversion date, and the period from August 23, 2006 to December 31, 2006,
728,625 and 670,904 restricted equity units vested, respectively, for a total fair value of $1 million and
$1 million, respectively. No partnership interests were vested prior to the conversion date. We expensed the
restricted equity units and the Class B partnership interests on a straight-line basis over the requisite service
period based upon the fair value of the award on the grant date. We did not record any compensation expense
for the Class C and Class D partnership interests as it was determined that it was not probable that these
awards would vest.
Cendant Stock-Based Compensation Plans
During the period in which we were owned by Cendant, from November 2004 to August 2006, certain of
our employees were granted equity awards in Cendant’s equity under Cendant’s existing stock-based
compensation plans. The activity under the Cendant Plan that related to our employees is described below.
Stock Options
Stock options granted by Cendant to its employees generally expired ten years from the grant date. In
2004, Cendant adopted performance and time vesting criteria for stock option grants. The predetermined
performance criteria determined the number of options that would ultimately vest and were based on the
growth of Cendant’s earnings and cash flows over the vesting period of the respective award. The number of
options that vested ranged from 0% to 200% of the base award. Vesting occurred over a four-year period, but
did not exceed 25% of the base award in each of the three years following the grant date. All unvested stock
options vested 30 days subsequent to the separation of certain subsidiaries of Cendant. Cendant’s policy was
to grant stock options with exercise prices at the then-current fair market value.
104
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)