Orbitz 2011 Annual Report Download - page 91

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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
91
Fair Value Measurements Using
Balance at
October 1, 2010
Quoted
prices in
active
markets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3) Total (Losses)
(in thousands)
Goodwill - HotelClub. . . . . . . . . . . . . . . . . . . . $ 29,118 $ — $ — $ 29,118 $ (41,753)
Trademarks and trade names
HotelClub . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,658 $ — $ — $ 4,658 $ (17,752)
CheapTickets . . . . . . . . . . . . . . . . . . . . . . . . 4,354 — — 4,354 (10,646)
Total trademarks and trade names . . . . . . . . . . $ 9,012 $ — $ — $ 9,012 $ (28,398)
Capitalized software. . . . . . . . . . . . . . . . . . . . . $ 1,865 $ — $ — $ 1,865 $ (4,516)
In addition to the assets shown in the table above, we were also required to measure the assets related to the expected in-
kind marketing and promotional support to be received from each of Northwest Airlines and American Airlines at fair value
during the year ended December 31, 2010. Upon completion of the operational merger of Northwest Airlines and Delta Airlines
into a single operating carrier, Northwest Airlines was no longer obligated to provide us with in-kind marketing and
promotional support after June 1, 2010. As a result, we recorded a charge to write-off this asset. In December 2010, AA
terminated its Charter Associate Agreement with us. As a result, AA was no longer obligated to provide us with in-kind
marketing and promotional support after December 2010, and we recorded a charge to write-off this asset.
Fair Value of Financial Instruments
For certain of our financial instruments, including cash and cash equivalents, accounts receivable, accounts payable,
accrued merchant payable and accrued expenses, the carrying value approximates or equals fair value due to their short-term
nature.
The carrying value of the Term Loan was $472.2 million at December 31, 2011, compared with a fair value of $415.5
million. At December 31, 2010, the carrying value of the Term Loan was $492.0 million, compared with a fair value of
$465.9 million. The fair values were determined based on quoted market ask prices.
18. Segment Information
We determine operating segments based on how our chief operating decision maker manages the business, including
making operating decisions and evaluating operating performance. We operate in one segment and have one reportable
segment.
We maintain operations in the United States, United Kingdom, Australia, Germany, Sweden, France, Finland, Ireland,
the Netherlands, Switzerland and other international territories. The table below presents net revenue by geographic area: the
United States and all other countries. Net revenue is allocated based on where the booking originated.
Years Ended December 31,
2011 2010 2009
(in thousands)
Net revenue
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 546,840 $ 579,386 $ 584,834
All other countries . . . . . . . . . . . . . . . . . . . . . . . . . . 219,979 178,101 152,814
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 766,819 $ 757,487 $ 737,648