Orbitz 2009 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 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

The changes in the carrying amount of goodwill are as follows:
Amount
(in millions)
Successor:
Balance at December 31, 2006 (a) ......................................... $1,190
Adjustments to goodwill acquired during 2006:
Tax sharing liability (b) ............................................... (8)
Impact of foreign currency translation (c).................................. 6
Other (d).......................................................... (7)
Balance at December 31, 2007 ........................................... $1,181
Impairment (e) ..................................................... (210)
Impact of foreign currency translation (c).................................. (22)
Balance at December 31, 2008 ........................................... $ 949
(a) The assets acquired and liabilities assumed in connection with the Blackstone Acquisition were
recorded at their relative fair values on the date of acquisition, August 23, 2006, in accordance with
SFAS No. 141, “Business Combinations” As of December 31, 2006, $1,190 million of the purchase
price was allocated to goodwill (see Note 3 — Blackstone Acquisition).
(b) This amount represents adjustments to goodwill related to the refinement of certain estimates, includ-
ing the applicable tax rate and period of payment, previously used to determine the net present value
of the tax sharing liability as of the date of the Blackstone Acquisition (see Note 9 — Tax Sharing
Liability). We finalized the purchase price allocations for the Blackstone Acquisition during the third
quarter of 2007.
(c) Goodwill is allocated among our subsidiaries, including certain international subsidiaries. As a result,
the carrying amount of our goodwill is impacted by foreign currency translation each period.
(d) This amount represents other adjustments to goodwill related to purchase price allocations, including
the refinement of the fair value of assets acquired and liabilities assumed. We finalized the purchase
price allocations for the Blackstone Acquisition during the third quarter of 2007.
(e) During the third quarter of 2008, we performed an interim impairment test on our goodwill and
indefinite-lived intangible assets. As a result of this testing, we recorded a non-cash impairment
charge of $210 million related to goodwill and $74 million related to trademarks and trade names
(see Note 4 — Impairment of Goodwill and Intangible Assets).
Finite-lived intangible assets consisted of the following:
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Weighted
Average
Useful Life
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Weighted
Average
Useful Life
December 31, 2008 December 31, 2007
Successor
(in years)(in millions) (in millions) (in years)
Finite-Lived Intangible Assets:
Customer relationships (a) ....... $68 $(37) $31 4 $90 $(26) $64 6
Vendor relationships and other .... 4 (1) 3 7 5 (1) 4 7
Total Finite-Lived Intangible Assets . . $72 $(38) $34 5 $95 $(27) $68 6
85
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)