Orbitz 2009 Annual Report Download - page 115

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In accordance with the fair value hierarchy described above, the following table shows the fair value of our
financial assets and liabilities that are required to be measured at fair value as of December 31, 2008, which are
classified as other current liabilities and other non-current liabilities in our consolidated balance sheets:
Balance at
December 31, 2008
Quoted prices in
active markets
(Level 1)
Significant other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Fair Value Measurements as of December 31, 2008
(in millions)
Foreign currency hedge liability (see
Note 14 — Derivative Financial Instruments) . . $ 1 $ 1 — —
Interest rate swap liabilities (see
Note 14 — Derivative Financial Instruments) . . $15 — $15 —
We value our interest rate hedges using valuations that are calibrated to the initial trade prices.
Subsequent valuations are based on observable inputs to the valuation model including interest rates, credit
spreads and volatilities.
We value our foreign currency hedges based on the difference between the foreign currency forward
contract rate and widely available foreign currency forward rates as of the measurement date. Our foreign
currency hedges consist of forward contracts that are short-term in nature, generally maturing within 30 days.
20. Segment Information
We determine operating segments based on how our chief operating decision maker manages the business,
including making operating decisions and evaluating operating performance. We operate in one segment and
have one reportable segment as defined by SFAS No. 131, “Disclosures about Segments of an Enterprise and
Related Information.”
We maintain operations in the U.S., U.K., Australia, Germany, Sweden, France, Finland, Ireland, the
Netherlands, Switzerland, Spain and other international territories. The table below presents net revenue by
geographic area: the U.S. and all other countries. We allocate net revenue based on where the booking
originated.
Year Ended
December 31, 2008
Successor
Year Ended
December 31, 2007
Successor
Period from
August 23, 2006 to
December 31, 2006
Successor
Period from
January 1, 2006 to
August 22, 2006
Predecessor
(in millions)
Net revenue
United States ........ $686 $679 $200 $411
All other countries .... 184 180 42 99
$870 $859 $242 $510
The table below presents property and equipment, net, by geographic area: the U.S. and all other
countries.
115
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)