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options. The risk-free interest rate is based on yields on U.S. Treasury strips with a maturity similar to the
estimated expected life of the stock options. We use historical turnover to estimate employee forfeitures.
Assumptions: 2009 2008
Period from
July 18, 2007 to
December 31, 2007
Years Ended
December 31,
Dividend yield .................................... — — —
Expected volatility ................................. 49% 41% 38%
Expected life (in years) .............................. 4.58 4.76 6.16
Risk-free interest rate ............................... 1.47% 3.62% 4.86%
Based on the above assumptions, the weighted average grant-date fair value of stock options granted
during the years ended December 31, 2009 and December 31, 2008 and the period from July 18, 2007 to
December 31, 2007 was $1.73, $2.54 and $6.89, respectively.
Restricted Stock Units
The table below summarizes activity regarding unvested restricted stock units under the Plan for the years
ended December 31, 2009 and December 31, 2008 and the period from July 18, 2007 to December 31, 2007:
Restricted
Stock Units
Weighted Average
Grant Date
Fair Value
(per share)
Unvested at July 18, 2007 ........................................ — —
Granted . . . ................................................... 2,687,836 $13.16
Vested(a) .................................................... (181,003) $11.73
Forfeited..................................................... (210,482) $13.08
Unvested at December 31, 2007 .................................... 2,296,351 $13.28
Granted . . . ................................................... 1,492,703 $ 6.12
Vested(a) .................................................... (296,366) $11.61
Forfeited..................................................... (768,332) $12.26
Unvested at December 31, 2008 .................................... 2,724,356 $ 9.83
Granted . . . ................................................... 4,011,642 $ 1.92
Vested(a) .................................................... (587,829) $ 8.91
Forfeited..................................................... (497,419) $ 9.79
Unvested at December 31, 2009 .................................... 5,650,750 $ 4.31
(a) We issued 425,068 shares, 233,878 shares and 142,440 shares of common stock in connection with
the vesting of restricted stock units during the years ended December 31, 2009 and December 31,
2008 and the period from July 18, 2007 to December 31, 2007, respectively, which is net of the
number of shares retained (but not issued) by us in satisfaction of minimum tax withholding
obligations associated with the vesting.
The restricted stock units granted at the time of the IPO upon conversion of unvested equity-based awards
previously held by our employees under the Travelport Plan, as described below, vested 5.555% in August
2007 and vested an additional 8.586% on each subsequent November, February, May and August through
February 2010, and become fully vested in May 2010. All other restricted stock units cliff vest at the end of
either a two-year or three-year period, or vest annually over a three-year or four-year period. The fair value of
restricted stock units on the date of grant is amortized on a straight-line basis over the requisite service period.
102
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)