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Orbitz Worldwide

3 Months Ended

Mar. 31, 2012

Orbitz Worldwide [Abstract]

Orbitz Worldwide

4. Orbitz Worldwide

The Company accounts for its investment of approximately 48% in Orbitz Worldwide under the equity method of accounting. As of March 31, 2012 and December 31, 2011, the carrying value of the Company’s investment in Orbitz Worldwide was $72 million and $77 million, respectively. The fair market value of the Company’s investment in Orbitz Worldwide as of March 31, 2012 was approximately $149 million.

Presented below are the summary results of operations for Orbitz Worldwide for the three months ended March 31, 2012 and 2011.


(in $ millions)		Three Months Ended March 31, 2012				Three Months Ended March 31, 2011
Net revenue			190				185
Operating expenses			186				186

Operating income (loss)			4				(1	)
Interest expense, net			(10	)			(10	)

Loss before income taxes			(6	)			(11	)
Provision for income taxes			(1	)			—

Net loss			(7	)			(11	)

The Company has recorded losses of $3 million and $5 million related to its investment in Orbitz Worldwide for the three months ended March 31, 2012 and 2011, respectively, within the equity in losses of investment in Orbitz Worldwide in the Company’s consolidated condensed statements of operations.

Net revenue disclosed above includes approximately $26 million and $29 million of net revenue earned by Orbitz Worldwide through transactions with the Company during the three months ended March 31, 2012 and 2011, respectively.

As of March 31, 2012 and December 31, 2011, the Company had balances payable to Orbitz Worldwide of approximately $17 million and $3 million, respectively, which are included on the Company’s consolidated condensed balance sheets within accrued expenses and other current liabilities.

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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