Orbitz 2011 Annual Report Download - page 24

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Our processing, storage, use and disclosure of personal data could give rise to liabilities as a result of governmental
regulation, conflicting legal requirements, differing views of personal privacy rights or security breaches.
In the processing of customer transactions, we receive and store a large volume of personally identifiable information.
This information is increasingly subject to legislation and regulations in numerous jurisdictions around the world. This
legislation and regulation is generally intended to protect the privacy and security of personal information, including credit card
information, that is collected, processed and transmitted in or from the governing jurisdiction. We could be adversely affected if
domestic or international legislation or regulations are expanded to require changes in our business practices, or if governing
jurisdictions interpret or implement their legislation or regulations in ways that negatively affect our business.
Travel companies have also been subjected to investigations, lawsuits and adverse publicity due to allegedly improper
disclosure of passenger information. As privacy and data protection have become more sensitive issues, we may also become
exposed to potential liabilities as a result of differing views on the privacy of travel data. These and other privacy concerns,
including security breaches, could adversely impact our business, financial condition and results of operations.
Our ability to attract, train and retain executives and other qualified employees is critical to our results of operations and
future growth.
We depend substantially on the continued services and performance of our key executives, senior management and
skilled personnel, particularly our professionals with experience in our industry and our information technology and systems.
Any of these individuals may choose to terminate their employment with us at any time. The specialized skills we require can
be difficult and time-consuming to acquire and, as a result, these skills are often in short supply. A significant period of time
and expense may be required to hire and train replacement personnel when skilled personnel depart the Company. Our inability
to hire, train and retain a sufficient number of qualified employees could materially hinder our business by, for example,
delaying our ability to bring new products and services to market or impairing the success of our operations or prospects for
future growth.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Our corporate headquarters are located in leased office space in Chicago, Illinois. We also lease office space for our
ebookers brand portfolio in various countries, including the United Kingdom, Finland, France, Germany, Ireland, the
Netherlands, Sweden and Switzerland. In addition, we lease office space for our HotelClub brand portfolio, primarily in
Sydney, Australia. We believe that our existing facilities are adequate to meet our current requirements and that additional
space will be available as needed to accommodate any further expansion of our business.
Item 3. Legal Proceedings
We are involved in various claims, legal proceedings and governmental inquiries related to contract disputes, business
practices, intellectual property and other commercial, employment and tax matters. The costs of defense and amounts that may
be recovered in certain matters may be partially covered by insurance. The following list identifies all litigation matters for
which we believe that an adverse outcome could be material to our financial position or results of operations, as well as other
matters that may be of particular interest to our stockholders.
Litigation Relating to Hotel Occupancy Taxes
Orbitz Worldwide, Inc. and certain of its current and former subsidiaries and affiliates, including Orbitz, Inc., Orbitz,
LLC, Trip Network, Inc. (d/b/a Cheaptickets.com), Travelport Inc. (f/k/a Cendant Travel Distribution Services Group, Inc.),
and Internetwork Publishing Corp. (d/b/a Lodging.com), are parties to various cases brought by consumers and municipalities
and other U.S. governmental entities involving hotel occupancy taxes and our merchant hotel business model. Some of the
cases are purported class actions, and most of the cases were brought simultaneously against other online travel companies,
including Expedia, Travelocity and Priceline. The cases allege, among other things, that we violated the jurisdictions' hotel
occupancy tax ordinance. While not identical in their allegations, the cases listed below generally assert similar claims,