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58
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Basis of Presentation
Description of the Business
Orbitz, Inc. (“Orbitz”) was established in early 2000 by American Airlines, Inc., Continental Airlines, Inc., Delta Air
Lines, Inc., Northwest Airlines, Inc. and United Air Lines, Inc. (the “Founding Airlines”). In November 2004, Orbitz was
acquired by Cendant Corporation (“Cendant”), whose online travel distribution businesses included the HotelClub and
RatesToGo brands (collectively referred to as “HotelClub”) and the CheapTickets brand. In February 2005, Cendant acquired
ebookers Limited, an international online travel brand which currently has operations in 12 countries throughout Europe
(“ebookers”).
On August 23, 2006, Travelport Limited (“Travelport”), which consisted of Cendant's travel distribution services
businesses, including the businesses that currently comprise Orbitz Worldwide, Inc., was acquired by affiliates of The
Blackstone Group (“Blackstone”) and Technology Crossover Ventures. We refer to this acquisition as the “Blackstone
Acquisition.”
Orbitz Worldwide, Inc. was incorporated in Delaware on June 18, 2007 and was formed to be the parent company of the
business-to-consumer travel businesses of Travelport, including Orbitz, ebookers and HotelClub and the related subsidiaries
and affiliates of those businesses. We are the registrant as a result of the completion of the initial public offering (the “IPO”) of
34,000,000 shares of our common stock on July 25, 2007. On April 15, 2013, following the completion of the Travelport
refinancing plan (the “Travelport Refinancing”), Orbitz Worldwide, Inc. is no longer a “controlled company” as defined in
Section 303A of the New York Stock Exchange listing rules. At December 31, 2013 and 2012, Travelport and investment funds
that own and/or control Travelport's ultimate parent company beneficially owned approximately 48% and 53% of our
outstanding common stock, respectively.
Orbitz Worldwide, Inc. is a global online travel company (“OTC”) that uses innovative technology to enable leisure and
business travelers to research, plan and book a broad range of travel products and services. Our brand portfolio includes Orbitz
and CheapTickets in the Americas; ebookers in Europe; and HotelClub and RatesToGo based in Australia, which have
operations globally (collectively referred to as “HotelClub”). We also own and operate Orbitz for Business, a corporate travel
company, and Orbitz Partner Network group, which delivers private label travel solutions to a broad range of partners. We
provide customers with the ability to book a wide array of travel products and services from suppliers worldwide, including air
travel, hotels, vacation packages, car rentals, cruises, rail tickets, travel insurance and destination services such as ground
transportation, event tickets and tours.
Basis of Presentation
The accompanying consolidated financial statements present the accounts of Orbitz, ebookers and HotelClub and the
related subsidiaries and affiliates of those businesses, collectively doing business as Orbitz Worldwide, Inc. These entities
became wholly-owned subsidiaries of ours as part of an intercompany restructuring that was completed on July 18, 2007 in
connection with the IPO. Prior to the IPO, these entities had operated as indirect, wholly-owned subsidiaries of Travelport.
2. Summary of Significant Accounting Policies
Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with United States generally
accepted accounting principles (“GAAP”). All intercompany balances and transactions have been eliminated in the
consolidated financial statements.
Use of Estimates
The preparation of our consolidated financial statements and related notes in conformity with GAAP requires us to make
certain estimates and assumptions. Our estimates and assumptions affect the reported amounts of assets, liabilities, revenues
and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates,