Orbitz 2008 Annual Report Download - page 88

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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. Acquisitions (Continued)
of $1 million were made, which reduced the facility-related liabilities to $1 million as of December 31, 2006. During 2007, the total activity in the facility-related
liabilities was almost nil, and the balance was $1 million at December 31, 2007. We anticipate that the remainder of the lease termination costs will be paid by
2013.
Other. During 2005, Cendant also acquired AsiaHotels.com and Away.com for aggregate consideration of $11 million in cash, which resulted in goodwill
(based on the allocation of the purchase price) of $8 million.
Pro Forma Financial Information (Unaudited)
The following unaudited pro forma financial information for our portion of the Blackstone Acquisition reflects our results of operations as if the acquisition
had been consummated as of the beginning of the periods presented. This pro forma financial information is based on historical information and does not
necessarily reflect the actual results of operations that would have occurred, nor is it indicative of future results.
Predecessor
Period from January 1, 2006 to August 22, 2006
Year Ended December 31, 2005
Historical
As Reported
Adjustments(a)
Pro
Forma
Historical
As Reported
Adjustments(a)
Pro Forma
(in millions)
Net revenue $ 510 $ (20) $ 490 $ 686 $ 15 $ 701
Net (loss) income from
continuing operations $ (121) $ 108 $ (13) $ (388) $ 435 $ 47
(a)
This amount includes adjustments to amortization and depreciation expense based on the fair value and estimated useful lives assigned to tangible and
intangible assets at the time of the Blackstone Acquisition. This amount also includes adjustments recorded to deferred revenue as well as the
amortization of certain below market contracts with suppliers recorded as a result of the acquisition, which reduced net revenue and net income. The
impairment of intangible assets recorded in both periods is also excluded in the calculation of pro forma net (loss) income from operations, as
goodwill and intangible assets would have been stated at fair value at the beginning of each period presented had purchase accounting been applied,
and therefore impairment would not have existed. The adjustments for 2005 also include the operating results of ebookers, from January 1, 2005
through February 28, 2005, the date of acquisition.
81
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008