Orbitz 2009 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 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

need for an assessment prior to our annual testing date. As a result of this testing, we recorded a non-cash
impairment charge of $122 million during the period from January 1, 2006 to August 22, 2006, of which
$115 million related to goodwill, $6 million related to other indefinite-lived intangible assets and $1 million
related to finite-lived intangible assets. This charge is included in the impairment of goodwill and intangible
assets expense line item in our consolidated statements of operations.
5. Property and Equipment, Net
Property and equipment, net, consisted of the following:
December 31, 2008 December 31, 2007
Successor
(in millions)
Capitalized software ............................ $188 $149
Furniture, fixtures and equipment ................... 60 60
Leasehold improvements . . . ...................... 13 15
Construction in progress . . . ...................... 15 7
Gross property and equipment ..................... 276 231
Less: accumulated depreciation and amortization ....... (86) (47)
Property and equipment, net ...................... $190 $184
For the years ended December 31, 2008 and December 31, 2007 and for the periods from August 23,
2006 to December 31, 2006 and January 1, 2006 to August 22, 2006, we recorded depreciation and
amortization expense related to property and equipment in the amount of $48 million, $37 million, $11 million
and $32 million, respectively.
The gross amount of assets subject to capital leases at December 31, 2008 and December 31, 2007 was
$0 and $4 million, respectively. Assets subject to capital leases are included in furniture, fixtures and
equipment. The accumulated amortization of assets subject to capital leases was $0 and $3 million at
December 31, 2008 and December 31, 2007, respectively. The corresponding amortization expense is included
in depreciation and amortization expense in our consolidated statements of operations. As of December 31,
2008 and December 31, 2007, we had a liability of $0 and $1 million under our capital leases, respectively,
which was included in other current liabilities in our consolidated balance sheets.
6. Goodwill and Intangible Assets
Goodwill and indefinite-lived intangible assets consisted of the following:
December 31, 2008 December 31, 2007
Successor
(in millions)
Goodwill and Indefinite-Lived Intangible Assets:
Goodwill ................................... $949 $1,181
Trademarks and trade names .................... 232 313
84
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)