Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

3.  Discontinued Operations

On May 5, 2011, the Company completed the sale of the GTA business to Kuoni. The Company realized a gain of $312 million, net of tax, on the transaction. Proceeds from the sale, together with existing cash, were used to make a $655 million early repayment of indebtedness outstanding under the Company’s senior secured credit agreement. The gain from the disposal of the GTA business and the results of operations of the GTA business are presented as discontinued operations in the Company’s consolidated condensed statements of operations and consolidated condensed statements of cash flows. The assets and liabilities of the GTA business are classified as discontinued operations on the Company’s consolidated condensed balance sheet for periods presented prior to the sale.

Summarized statements of operations data for the discontinued operations of the GTA business, excluding intercompany transactions, are as follows:

	From April 1,			Three Months			From January 1,			Six Months
	2011 to			Ended			2011 to			Ended
	May 5,			June 30,			May 5,			June 30,
(in $ millions)	2011			2010			2011			2010
Net revenue		27			78			76			123
Operating expenses		22			65			86			122
Operating income (loss) before income taxes		5			13			(10	)		1
(Provision) benefit from income taxes		(1	)		(1	)		4			2
Income (loss) from discontinued operations, net of tax		4			12			(6	)		3
Gain from disposal of discontinued operations, net of tax of $0		312			—			312			—
Total income from discontinued operations, net of tax		316			12			306			3

Summarized balance sheet data for the discontinued operations of the GTA business, excluding intercompany balances, is as follows:

	December 31,
(in $ millions)	2010
Cash and cash equivalents		148
Accounts receivable		187
Other current assets		20
Current assets		355
Goodwill		291
Trademarks and tradenames		99
Other intangible assets, net		279
Other non-current assets		42
Total assets		1,066
Accounts payable		111
Accrued expenses and other current liabilities		335
Current liabilities		446
Deferred income taxes		96
Other non-current liabilities		13
Total liabilities		555

In connection with the sale of the GTA business to Kuoni, the Company has agreed to indemnify Kuoni up to May 2017 for certain potential tax liabilities relating to pre-sale events. An estimate of the Company’s obligations under those indemnities is included within other non-current liabilities on the Company’s consolidated condensed balance sheet as of June 30, 2011.

In connection with the sale of the GTA business, the Company entered into a transitional services agreement (“TSA”) with Kuoni on May 5, 2011 in order to facilitate the orderly transition of certain administrative functions. The TSA mainly covers human resources and payroll related services within the United States. The term for most transitional services is less than twelve months and the income and cash flows associated with these activities are not expected to be significant to the future results of operations or cash flows of the Company.