Orbitz 2012 Annual Report Download - page 85

ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
85
The following table summarizes the related party transactions with other affiliates of Blackstone, reflected in our
consolidated statements of operations:
Years Ended December 31,
2012 2011 2010
(in thousands)
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,348 $ 23,966 $ 22,098
Cost of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 15,144 30,166
Selling, general and administrative expense . . . . . . . . . . . . . . 760 2,354 2,913
Marketing expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 70 54
16. Fair Value Measurements
The following table shows the fair value of our assets and liabilities that are required to be measured at fair value on a
recurring basis as of December 31, 2012 and 2011, which are classified as cash and cash equivalents, other current assets, other
current liabilities and other non-current liabilities in our consolidated balance sheets.
Fair Value Measurements as of
December 31, 2012 December 31, 2011
Total
Quoted
prices in
active
markets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3) Total
Quoted
prices in
active
markets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Assets: (in thousands) (in thousands)
Money market funds . . . . . . . . . . $ — $ — $ — $ — $ 36,002 $ 36,002 $ — $ —
Foreign currency hedges. . . . . . . $ — $ — $ — $ — $ 991 $ 991 $ — $ —
Liabilities:
Foreign currency hedges. . . . . . . $ 2,396 $ 2,396 $ — $ — $ 495 $ 495 $ — $ —
Interest rate swaps. . . . . . . . . . . . $ 276 $ — $ 276 $ — $ 586 $ — $ 586 $ —
We value our foreign currency hedges based on the difference between the foreign currency contract rate and widely
available foreign currency rates as of the measurement date. Our foreign currency hedges are short-term in nature, generally
maturing within 30 days. We value our interest rate swaps using valuations that are calibrated to the initial trade prices. Using a
market-based approach, subsequent valuations are based on observable inputs to the valuation model including interest rates,
credit spreads and volatilities.
The following table shows the fair value of our non-financial assets that were required to be measured at fair value on a
non-recurring basis during the year ended December 31, 2012. These non-financial assets, which included the goodwill and
trademarks and trade names associated with Orbitz and the trademarks and trade names associated with CheapTickets were
required to be measured at fair value in connection with the annual impairment test we performed on our goodwill and
trademarks and trade names for the year ended December 31, 2012 (see Note 4 - Goodwill and Intangible Assets).
Fair Value Measurements Using
Balance at
December 31,
2012
Quoted
prices in
active
markets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3) Total Losses
(in thousands)
Goodwill - Americas . . . . . . . . . . . . . . . . . . . . . . $ 345,388 $ — $ — $ 345,388 $ (301,912)
Trademarks and trade names. . . . . . . . . . . . . . . . $ 83,065 $ — $ — $ 83,065 $ (17,635)
Customer relationships . . . . . . . . . . . . . . . . . . . . $ — $ — $ — $ — $ (1,625)