Orbitz Worldwide

9 Months Ended

Sep. 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 September 30, 2012 and December 31, 2011, the carrying value of the Company’s investment in Orbitz Worldwide was $80 million and $77 million, respectively. The fair market value of the Company’s investment in Orbitz Worldwide as of September 30, 2012 was approximately $124 million.

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

(in $ millions)	Three Months Ended September 30, 2012			Three Months Ended September 30, 2011			Nine Months Ended September 30, 2012			Nine Months Ended September 30, 2011
Net revenue		198			203			589			590
Operating expenses		173			180			545			548
Operating income		25			23			44			42
Interest expense, net		(9	)		(10	)		(28	)		(30	)
Income before income taxes		16			13			16			12
Provision for income taxes		(1	)		(2	)		(3	)		(3	)
Net income		15			11			13			9

The Company has recorded earnings of $7 million and $6 million related to its investment in Orbitz Worldwide for the three and nine months ended September 30, 2012, 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, 2011, the Company recorded earnings of $5 million and $4 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 $21 million and $72 million of net revenue earned by Orbitz Worldwide through transactions with the Company during the three and nine months ended September 30, 2012, respectively.

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.

As of September 30, 2012 and December 31, 2011, the Company had balances payable to Orbitz Worldwide of approximately $12 million and $3 million, respectively, which are included on the Company’s consolidated condensed balance sheets within accrued expenses and other current liabilities.