Orbitz 2011 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2011 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 108

  • 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

ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
90
17. Fair Value Measurements
The following table shows the fair value of our financial assets and financial liabilities that are required to be measured
at fair value on a recurring basis as of December 31, 2011 and 2010, which are classified as cash and cash equivalents, other
current assets, other current liabilities and other non-current liabilities in our consolidated balance sheets. We currently do not
have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis.
Fair Value Measurements as of
December 31, 2011 December 31, 2010
Total
Quoted
prices in
active
markets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3) Total
Quoted
prices in
active
markets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
(in thousands)
Assets:
Money market funds . . . . . $ 36,002 36,002 — — $ 49,097 49,097 — —
Foreign currency hedge
assets . . . . . . . . . . . . . . . . . $ 991 991 — — $ — — — —
Liabilities:
Foreign currency hedge
liabilities . . . . . . . . . . . . . . $ 495 495 — — $ 2,227 2,227 — —
Interest rate swap
liabilities . . . . . . . . . . . . . . $ 586 — 586 — $ 2,917 — 2,917 —
We value our foreign currency hedges based on the difference between the foreign currency contract rate and widely
available foreign currency rates as of the measurement date. Our foreign currency hedges are short-term in nature, generally
maturing within 30 days. We value our interest rate swaps using valuations that are calibrated to the initial trade prices. Using a
market-based approach, subsequent valuations are based on observable inputs to the valuation model including interest rates,
credit spreads and volatilities.
The following table shows the fair value of our non-financial assets that were required to be measured at fair value on a
non-recurring basis during the year ended December 31, 2011. These non-financial assets, which included the goodwill and
trademarks and trade names associated with our HotelClub reporting unit as well as the trademarks and trade names associated
with our Orbitz brand, were required to be measured at fair value in connection with the annual impairment test we performed
on our goodwill and trademarks and trade names in the fourth quarter of 2011 (see Note 4 - Impairment of Goodwill and
Intangible Assets).
Fair Value Measurements Using
Balance at
October 1, 2011
Quoted
prices in
active
markets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3) Total (Losses)
(in thousands)
Goodwill - HotelClub. . . . . . . . . . . . . . . . . . . . $—$—$—$—$
(29,762)
Trademarks and trade names
HotelClub . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,200 $ — $ — $ 3,200 $ (1,475)
Orbitz. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,346 — — 96,346 (18,654)
Total trademarks and trade names . . . . . . . . . . $ 99,546 $ — $ — $ 99,546 $ (20,129)
The following table shows the fair value of our non-financial assets that were required to be measured at fair value on a
non-recurring basis during the year ended December 31, 2010. These non-financial assets, which included the goodwill,
trademarks and certain property and equipment associated with our HotelClub reporting unit as well as the trademark
associated with our CheapTickets brand, were required to be measured at fair value as of October 1, 2010 in connection with
the annual impairment test we performed on our goodwill and trademarks and trade names in the fourth quarter of 2010.