Orbitz 2009 Annual Report Download - page 81

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the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree. This
statement also establishes disclosure requirements to enable financial statement users to evaluate the nature and
financial effects of the business combination. SFAS No. 141(R) applies prospectively to business combinations for
which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after
December 15, 2008, and interim periods within those fiscal years. SFAS No. 141(R) will become effective for our
fiscal year beginning January 1, 2009. We do not expect the adoption of SFAS No. 141(R) to have an effect on our
consolidated financial statements unless we enter into a business combination or reduce our deferred tax valuation
allowance that was established in purchase accounting. In connection with the Blackstone Acquisition, we
established a deferred income tax valuation allowance of $408 million in purchase accounting. Under the current
standard, any reductions in our remaining deferred income tax valuation allowance that was originally established
in purchase accounting are recorded through goodwill. Beginning January 1, 2009, these reductions will be
recorded through our statement of operations.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging
Activities” (“SFAS No. 161”), which changes the disclosure requirements for derivative instruments and
hedging activities previously identified under SFAS No. 133, “Accounting for Derivative Instruments and
Hedging Activities” (“SFAS No. 133”). SFAS No. 161 provides for enhanced disclosures regarding (a) how
and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are
accounted for under SFAS No. 133 and its related interpretations and (c) how derivative instruments and
related hedged items affect an entity’s financial position, financial performance, and cash flows. SFAS No. 161
will become effective for our fiscal year beginning January 1, 2009. We do not expect the adoption of
SFAS No. 161 to have a material impact on our consolidated financial position or results of operations.
3. Blackstone Acquisition
Assets acquired and liabilities assumed in business combinations are recorded in our consolidated balance
sheets based upon their estimated fair values at the respective acquisition dates. The results of operations of
businesses acquired by us have been included in our consolidated statements of operations since their
respective dates of acquisition. The excess of the purchase price over the estimated fair values of the
underlying assets acquired and liabilities assumed was allocated to goodwill.
On August 23, 2006, Blackstone and TCV acquired Travelport, which consisted of Cendant’s travel
distribution services businesses, for $4.1 billion in cash. The assets acquired and liabilities assumed in connection
with the Blackstone Acquisition were recorded at their relative fair values on the acquisition date. This allocation
was based on a valuation derived from assumptions and estimates provided by management. The preliminary
allocation was subject to revision until final resolution was reached on certain outstanding contingent liabilities.
During the third quarter of 2007, the allocation of the purchase price was finalized. We were allocated $1.3 billion
81
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)