Orbitz 2012 Annual Report Download - page 66

ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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During the year ended December 31, 2011, we changed our annual testing date from October 1 to December 31. In
connection with our annual impairment test as of December 31, 2011, which utilized the same approach as our October 1, 2011
analysis, no further impairment was identified.
2010
During the year ended December 31, 2010, we performed our annual impairment test of goodwill and trademark and
trade names as of October 1, 2010.
We estimated the fair value of our reporting units to which goodwill is allocated using generally accepted valuation
methodologies, including market and income based approaches, as described above, and relevant data available through and as
of October 1, 2010. The key assumptions used in determining the estimated fair value of our reporting units were the terminal
growth rates, forecasted cash flows and the discount rates.
We used an income based valuation approach to separately estimate the fair values of all of our trademarks and trade
names as of October 1, 2010 and compared those estimates to the respective carrying values. The key assumptions used in
determining the estimated fair value of our trademarks and trade names were the terminal growth rates, forecasted revenues,
assumed royalty rates and the discount rates. Significant judgment was required to select these inputs based on observed market
data.
In connection with our annual impairment test and as a result of lower than expected performance and forecasted cash
flows for HotelClub and CheapTickets, we recorded a non-cash impairment charge of $70.2 million during the year ended
December 31, 2010, of which $41.8 million was related to the goodwill of HotelClub and $28.4 million was related to the
trademarks and trade names associated with HotelClub and CheapTickets. These charges were included in impairment of
goodwill and intangible assets in our consolidated statements of operations.
Finite-Lived Intangibles
Finite-lived intangible assets consisted of the following:
December 31, 2012 December 31, 2011
Gross Carrying
Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount
(in thousands) (in thousands)
Customer relationships . . . . . . . . . . . . . . $ — $ — $ — $ 8,000 $ (5,375) $ 2,625
Vendor relationships . . . . . . . . . . . . . . . . 5,447 (4,617) 830 5,379 (3,842) 1,537
Total finite-lived intangible assets . . . . $ 5,447 $ (4,617) $ 830 $ 13,379 $ (9,217) $ 4,162
In 2012, we recorded a non-cash impairment charge of $1.6 million related to finite-lived intangible assets. This charge
was included in impairment of goodwill and intangible assets in our consolidated statements of operations. There are no
significant finite-lived intangible assets remaining.
For the years ended December 31, 2012, 2011 and 2010, we recorded amortization expense related to finite-lived
intangible assets in the amount of $1.7 million, $3.5 million and $11.2 million, respectively. These amounts were included in
depreciation and amortization expense in our consolidated statements of operations.
The estimated amortization expense related to our finite-lived intangible assets will be $0.7 million and $0.1 million for
the years ended December 31, 2013 and 2014, respectively.