Orbitz 2009 Annual Report Download - page 105

Download and view the complete annual report

Please find page 105 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 table below summarizes our stock option activity under the Cendant Plan during the period from
January 1, 2006 to August 22, 2006:
Number of
Options
Weighted
Average
Exercise
Price
(per share)
Period from January 1, 2006 to
August 22, 2006
Predecessor
Outstanding at beginning of period ............................ 3,098,203 $14.42
Exercised ............................................... (1,041) 17.15
Forfeited/cancelled ........................................ (211,939) 14.35
Vested/converted as a result of the Blackstone Acquisition ........... (2,885,223) 14.41
Outstanding at end of period ................................. — —
Restricted Stock Units
Restricted stock units granted by Cendant entitled employees, including certain of our employees, to
receive one share of Cendant common stock upon vesting. In 2004, Cendant adopted performance and time
vesting criteria for restricted stock unit grants. The predetermined performance criteria determined the number
of restricted stock units that will ultimately vest and were based on the growth of Cendant earnings and cash
flows over the vesting period of the respective award. The number of restricted stock units that vested may
range from 0% to 200% of the base award. Vesting occurred over a four-year period, but did not exceed 25%
of the base award in each of the three years following the grant date.
The table below summarizes our employees’ restricted stock unit activity in the Cendant Plan during the
period from January 1, 2006 to August 22, 2006:
Number of
Restricted
Stock Units
Weighted
Average
Grant Date
Fair Value
(per share)
Period from January 1, 2006
to August 22, 2006
Predecessor
Balance at beginning of period ................................. 1,570,957 $15.51
Vested/exercised ............................................ (69,732) 19.88
Forfeited/cancelled .......................................... (180,098) 21.25
Vested/converted as a result of the Blackstone Acquisition ............. (1,321,127) 13.11
Balance at end of period ...................................... — —
Compensation Expense
We recognized total equity-based compensation expense of $15 million, $8 million and $2 million during
the years ended December 31, 2008 and December 31, 2007 and the period from August 23, 2006 to
December 31, 2006, respectively, none of which has provided us a tax benefit.
For the period from January 1, 2006 to August 22, 2006, Cendant allocated pre-tax equity based
compensation expense of $4 million to us, none of which has provided us a tax benefit.
105
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)