Orbitz 2009 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2009 Orbitz annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

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 distribution
businesses included the CheapTickets, HotelClub and RatesToGo brands. In February 2005, Cendant acquired
ebookers Limited, an international online travel brand with operations in 13 countries throughout Europe
(“ebookers”).
On August 23, 2006, Travelport Limited (“Travelport”), which consisted of Cendant’s travel distribution
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 the business-to-consumer travel businesses of Travelport, including Orbitz, ebookers and Travel
Acquisition Corporation Pty. Ltd. (“HotelClub”) 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, 2008 and December 31, 2007, Travelport and
investment funds that own and/or control Travelport’s ultimate parent company beneficially owned approxi-
mately 58% and 59% of our outstanding common stock, respectively.
We are a leading global online travel company that uses innovative technology to enable leisure and
business travelers to search for 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 have 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.
Basis of Presentation
The accompanying consolidated 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 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. Prior to
the IPO, these entities had operated as indirect, wholly-owned subsidiaries of Travelport. 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.
The accompanying consolidated financial statements present separately our financial position, results of
operations, cash flows, comprehensive loss and changes in equity on a “Successor” basis (reflecting
Travelport’s ownership of us) and “Predecessor” basis (reflecting Cendant’s ownership of us). Our financial
72