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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
81
Deferred
Stock Units
Weighted-
Average
Grant Date
Fair Value
(per share)
Outstanding at January 1, 2013 1,183,637 $ 3.71
Granted 170,816 $ 7.79
Distributed (431,147) $ 3.81
Outstanding at December 31, 2013 923,306 $ 4.41
The weighted-average grant date fair value for deferred stock units granted during the years ended December 31, 2013,
2012 and 2011 was $7.79, $3.47 and $2.89, respectively.
Compensation Expense
We recognized total equity-based compensation expense of $12.9 million, $7.6 million and $8.5 million for the years
ended December 31, 2013, 2012 and 2011, respectively, none of which has provided us with a tax benefit due to existence of
net operating losses. As of December 31, 2013, a total of $15.4 million of unrecognized compensation costs related to unvested
restricted stock units, unvested stock options and unvested PSUs are expected to be recognized over the remaining weighted-
average period of 2.7years.
12. Derivative Financial Instruments
Interest Rate Hedges
At December 31, 2013, we had the following interest rate swaps outstanding that will substantially convert $200.0
million of term loans from a variable to a fixed interest rate once they become effective. We pay a fixed interest rate on the
notional amount and in exchange receive a variable interest rate based on the one-month LIBOR rate. The Company does not
use derivatives for speculative or trading purposes.
The Company entered into interest rate derivative contracts to protect against volatility of future cash flows of the
variable interest payments on the Credit Agreement. These derivative contracts are economic hedges and are not designated as
cash flow hedges. The Company marks-to-market these instruments and records the changes in the fair value of these items in
“Net interest expense” in the Company's Consolidated Statements of Operations, and recognizes the unrealized gain or loss in
other non-current assets or liabilities. Unrealized gains/(losses) of $1.2 million and $0 million were recognized at December 31,
2013 and 2012, respectively.
Notional Amount Effective Date Maturity Date Fixed Interest
Rate Paid Variable Interest
Rate Received
$100.0 million August 29, 2014 August 31, 2016 1.11% One-month LIBOR
$100.0 million August 29, 2014 August 31, 2016 1.15% One-month LIBOR
During March 2013, we terminated our then outstanding $100.0 million swap in conjunction with the termination of our
2007 Credit Agreement. Our interest rate swaps related to the 2007 Credit Agreement were the only derivative financial
instruments that we had designated as hedging instruments.
Notional Amount Effective Date Maturity Date Fixed Interest
Rate Paid Variable Interest
Rate Received
$100.0 million July 29, 2011 July 31, 2013 0.68% One-month LIBOR