Orbitz Worldwide

9 Months Ended

Sep. 30, 2011


7.	Orbitz Worldwide

The Company accounts for its investment of approximately 48% in Orbitz Worldwide under the equity method of accounting. As of September 30, 2011 and December 31, 2010, the Company’s investment in Orbitz Worldwide was $100 million and $91 million, respectively. The fair market value of the Company’s investment in Orbitz Worldwide as of September 30, 2011 was approximately $106 million.

Presented below are the summary results of operations for Orbitz Worldwide for the three and nine months ended September 30, 2011 and 2010, respectively.


	Three Months			Three Months			Nine Months			Nine Months
	Ended			Ended			Ended			Ended
	September 30,			September 30,			September 30,			September 30,
(in $ millions)	2011			2010			2011			2010

Net revenue		203			194			590			575
Operating expenses		180			167			548			519

Operating income		23			27			42			56
Interest expense, net		(10	)		(11	)		(30	)		(33	)

Income before income taxes		13			16			12			23
Income tax provision		(2	)		(1	)		(3	)		(3	)

Net income		11			15			9			20

The Company has recorded earnings of $5 million and $4 million related to its investment in Orbitz Worldwide for the three and nine months ended September 30, 2011, respectively, within the equity in earnings of investment in Orbitz Worldwide on the Company’s consolidated condensed statements of operations. For the three and nine months ended September 30, 2010, the Company recorded earnings of $8 million and $10 million, respectively, within the equity in earnings of investment in Orbitz Worldwide on the Company’s consolidated condensed statements of operations.

Net revenue disclosed above includes approximately $26 million and $85 million of net revenue earned by Orbitz Worldwide through transactions with the Company during the three and nine months ended September 30, 2011, respectively. Net revenue disclosed above includes approximately $28 million and $89 million of net revenue earned by Orbitz Worldwide through transactions with the Company during the three and nine months ended September 30, 2010, respectively.

As of September 30, 2011 and December 31, 2010, the Company had balances payable to Orbitz Worldwide of approximately $15 million and $16 million, respectively, which are included on the Company’s consolidated condensed balance sheets within accrued expenses and other current liabilities.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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