Orbitz 2009 Annual Report Download - page 86

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(a) During the third quarter of 2008, we performed an impairment test on our finite-lived intangible assets. As
a result of this testing, we recorded a non-cash impairment charge of $13 million related to our customer
relationships (see Note 4 — Impairment of Goodwill and Intangible Assets).
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 amortization expense
related to finite-lived intangible assets in the amount of $18 million, $20 million, $7 million and $5 million,
respectively. These amounts are included in depreciation and amortization expense in our consolidated
statements of operations.
The table below shows estimated amortization expense related to our finite-lived intangible assets over
the next five years:
Year (in millions)
2009............................................................... $17
2010............................................................... 10
2011............................................................... 3
2012............................................................... 2
2013............................................................... 1
Thereafter........................................................... 1
Total ............................................................. $34
7. Accrued Expenses
Accrued expenses consisted of the following:
December 31, 2008 December 31, 2007
Successor
(in millions)
Advertising and marketing ........................... $ 29 $ 25
Tax sharing liability, current .......................... 15 27
Employee costs ................................... 13 15
Technology costs .................................. 7 6
Rebates ......................................... 6 6
Customer service costs .............................. 5 5
Facilities costs .................................... 4 8
Professional fees................................... 4 4
Contract exit costs (a) ............................... 4 1
Unfavorable contracts, current . . . ...................... 3 3
Other ........................................... 16 21
Total accrued expenses ............................ $106 $121
(a) During 2007, we terminated an agreement, and as a result, we are required to make a total of $18 mil-
lion of termination payments from January 1, 2008 to December 31, 2016. At December 31, 2007,
the net present value of these payments of $14 million was included in our consolidated balance
sheets, $1 million of which was included in accrued expenses and $13 million of which was included
in other non-current liabilities. A corresponding expense of $13 million was recorded to selling, gen-
eral and administrative expense in our consolidated statements of operations for the year ended
86
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)