Orbitz 2009 Annual Report Download - page 73

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information has been separated by a vertical line on the face of the consolidated financial statements to
identify these different bases of accounting.
The legal entity of Orbitz Worldwide, Inc. was formed in connection with the Reorganization, and prior
to the Reorganization there was no single capital structure upon which to calculate historical loss per share
information. Accordingly, loss per share information is not presented on our consolidated statements of
operations for periods prior to the Reorganization.
Our consolidated financial position, results of operations, and cash flows for the periods presented may
not be indicative of our future performance and do not necessarily reflect what our financial position, results
of operations and cash flows would have been had we operated as a separate, standalone entity during the
periods presented.
Prior to the IPO, certain corporate general and administrative expenses, including those related to
executive management, information technology, tax, insurance, accounting, legal, treasury services and certain
employee benefits, were allocated to us by Travelport and Cendant based on forecasted revenue or directly
billed based on actual usage. In addition, certain of our revenue streams were related to contractual
arrangements entered into by Travelport and Cendant on behalf of one or more of its subsidiaries. As a result,
portions of the reported revenue have been determined through intercompany relationships with other
Travelport or Cendant companies. Management believes these allocations are reasonable. However, the
associated revenues and expenses recorded by the Predecessor and Successor in the accompanying consoli-
dated statements of operations prior to the IPO may not be indicative of the actual revenues and expenses that
would have been reported had the Predecessor and Successor been operating as a standalone entity.
On July 5, 2007, we sold Tecnovate, an Indian services organization, to Travelport. In accordance with
Financial Accounting Standards Board (“FASB”) Interpretation No. 46(R), “Consolidation of Variable Interest
Entities, an Interpretation of ARB No. 51,” as revised (“FIN 46(R)”), we continued to consolidate the results
of operations of Tecnovate following this sale since we were the primary beneficiary of this variable interest
entity (“VIE”). Our variable interest was the result of the terms of a contractual relationship we had with
Tecnovate.
On December 3, 2007, Travelport subsequently sold Tecnovate, at which time we were no longer
considered the primary beneficiary of this VIE. Accordingly, minority interest is reported in our consolidated
financial statements for the period from July 5, 2007 to December 3, 2007 since although we were the primary
beneficiary of Tecnovate, we did not have an ownership interest in the VIE. We no longer consolidate the
results of operations of Tecnovate following the sale on December 3, 2007 (see Note 18 — Related Party
Transactions for further information).
2. Summary of Significant Accounting Policies
Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States (“GAAP”). All intercompany balances and transactions have
been eliminated in the consolidated financial statements.
Use of Estimates
The preparation of our consolidated financial statements in conformity with GAAP requires us to make
certain estimates and assumptions. Our estimates and assumptions affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities as of the date of our consolidated financial
statements, and the reported amounts of revenue and expense during any period.
73
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)