Orbitz 2009 Annual Report Download - page 113

Related Party Transactions with Former Cendant Affiliates
The following table summarizes the related party transactions with Cendant affiliates for the period from
January 1, 2006 to August 22, 2006, reflected in our consolidated statements of operations:
Period from
January 1, 2006 to
August 22, 2006
Predecessor
(in millions)
Net revenue ..................................................... $10
Selling, general and administrative expense .............................. 6
Interest expense . ................................................. 5
Corporate Related Functions
Our consolidated statements of operations reflect an allocation of both general and corporate overhead
expenses and directly billed expenses incurred on our behalf from Cendant. General corporate overhead
expenses have been allocated based on a percentage of the forecasted revenue. Direct billed expenses were
based upon actual utilization of the services. Cost subject to the overhead allocations and direct billings
include executive management, tax, insurance, accounting, legal, treasury, information technology, telecommu-
nications, call center support and real estate expenses.
Marketing Services Division Agreements
In October 2005, Cendant sold the companies that made up its Marketing Services Division (“MSD”). We
are a party to a number of agreements with the MSD companies, pursuant to which we provide each other
with a combination of technical support, marketing services and travel fulfillment services. The initial terms of
these agreements generally extend for five to six years, unless terminated by either party in accordance with
the terms of those agreements. With respect to the technical support, we pay MSD an inducement payment for
each net booking made by MSD through our GDS, and MSD pays us management fees for access to our GDS
and the equipment, software and services provided. With respect to the marketing arrangements, MSD
typically pays us commissions, either based on customers referred or products and services sold. With respect
to the fulfillment services agreement, MSD pays us fees based on services used plus a share of revenue from
reservations of select hotels.
Media Services
Avis Budget Group provided us with media planning and advertising buying services until December 31,
2006. We paid advertising costs directly to the third-party vendors.
Realogy Corporation (“Realogy”) provided us with media planning and advertising buying services. We
paid advertising costs directly to the third-party vendors; however, we also paid Realogy a fee for access to
these vendors.
Wright Express Agreement
In February 2005, Cendant completed the initial public offering of all of the outstanding common stock
of its wholly owned Wright Express subsidiary. We are a party to an agreement with Wright Express where
we participate in a MasterCard rotating account program. Under this agreement, we participate in the program
for our purchasing needs, particularly for our online reservation systems. Wright Express earns money from
the interchange rate a vendor is charged for all purchases made on any rotating account, and Wright Express
pays us a rebate based upon our purchase volume.
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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)