Orbitz 2013 Annual Report Download - page 66

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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
66
market approach to corroborate these estimates. We considered the market approach from a reasonableness standpoint by
comparing the multiples of guideline companies with the implied multiples from the income based approach, and we also
considered our market capitalization to assess reasonableness of the income based approach valuations. 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, 2011 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 discount rates. Significant judgment was required to select these inputs based on observed market
data.
In connection with our annual impairment test as of October 1, 2011, and as a result of lower than expected performance
and future cash flows for Orbitz and HotelClub, we recorded a non-cash impairment charge of $49.9 million during the year
ended December 31, 2011, of which $29.8 million was related to the goodwill of HotelClub and $20.1 million was related to
the trademarks and trade names associated with Orbitz and HotelClub. These charges were included in impairment of goodwill
and intangible assets in our consolidated statements of operations.
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.
Finite-Lived Intangibles
Finite-lived intangible assets consisted of the following:
December 31, 2013 December 31, 2012
Gross Carrying
Amount Accumulated
Amortization Net Carrying
Amount Gross Carrying
Amount Accumulated
Amortization Net Carrying
Amount
(in thousands) (in thousands)
Vendor relationships $ 4,693 $ (4,604) $ 89 $ 5,447 $ (4,617) $ 830
Total finite-lived intangible assets $ 4,693 $ (4,604) $ 89 $ 5,447 $ (4,617) $ 830
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, 2013, 2012 and 2011, we recorded amortization expense related to finite-lived
intangible assets in the amount of $0.7 million, $1.7 million and $3.5 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 less than $0.1 million and $0.0
million for the years ended December 31, 2014 and 2015, respectively.