Orbitz Worldwide

6 Months Ended

Jun. 30, 2012

Orbitz Worldwide [Abstract]

Orbitz Worldwide

4. Orbitz Worldwide

The Company accounts for its investment of approximately 47% in Orbitz Worldwide under the equity method of accounting. As of June 30, 2012 and December 31, 2011, the carrying value of the Company’s investment in Orbitz Worldwide was $75 million and $77 million, respectively. The fair market value of the Company’s investment in Orbitz Worldwide as of June 30, 2012 was approximately $178 million.

Presented below are the summary results of operations for Orbitz Worldwide for the three and six months ended June 30, 2012 and 2011.

(in $ millions)	Three Months Ended June 30, 2012			Three Months Ended June 30, 2011			Six Months Ended June 30, 2012			Six Months Ended June 30, 2011
Net revenue		201			202			391			387
Operating expenses		186			182			372			368
Operating income		15			20			19			19
Interest expense, net		(9	)		(10	)		(19	)		(20	)
Income (loss) before income taxes		6			10			—			(1	)
Provision for income taxes		(1	)		(1	)		(2	)		(1	)
Net income (loss)		5			9			(2	)		(2	)

The Company has recorded earnings (losses) of $2 million and $(1) million related to its investment in Orbitz Worldwide for the three and six months ended June 30, 2012, respectively, within the equity in earnings (losses) of investment in Orbitz Worldwide on the Company’s consolidated condensed statements of operations. For the three and six months ended June 30, 2011, the Company recorded earnings (losses) of $4 million and $(1) million, respectively, within the equity in earnings (losses) of investment in Orbitz Worldwide on the Company’s consolidated condensed statements of operations.

Net revenue disclosed above includes approximately $25 million and $51 million of net revenue earned by Orbitz Worldwide through transactions with the Company during the three and six months ended June 30, 2012, respectively.

Net revenue disclosed above includes approximately $30 million and $59 million of net revenue earned by Orbitz Worldwide through transactions with the Company during the three and six months ended June 30, 2011, respectively.

As of June 30, 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.