Guarantor and Non-Guarantor Consolidating Condensed Financial Statements

3 Months Ended

Mar. 31, 2013

Guarantor and Non-Guarantor Consolidating Condensed Financial Statements [Abstract]

Guarantor and Non-Guarantor Consolidating Condensed Financial Statements

10. Guarantor and Non-Guarantor Consolidating Condensed Financial Statements

All of the Company’s secured debt and it’s secured Senior Notes and the Senior Subordinated Notes are unconditionally guaranteed by Travelport Limited, as parent guarantor, Waltonville Limited and TDS Investor (Luxembourg) S.à.r.l., as intermediate parent guarantors, and, subject to certain exceptions, each of the Company’s existing and future domestic wholly-owned subsidiaries (the “guarantor subsidiaries”). The guarantees are full, unconditional, joint and several.

The following consolidating condensed financial statements presents the Company’s consolidating condensed statements of operations for the three months ended March 31, 2013 and 2012, the consolidating condensed statements of comprehensive income for the three months ended March 31, 2013 and 2012, consolidating condensed balance sheets as of March 31, 2013 and the year ended December 31, 2012, and the consolidating condensed statements of cash flows for the three months ended March 31, 2013 and 2012 for: (a) Travelport Limited (“the Parent Guarantor”); (b) Waltonville Limited and TDS Investor (Luxembourg) S.à.r.l. (together, “the Intermediate Parent Guarantor”); (c) Travelport LLC and Travelport Inc. (together, “the Issuer”); (d) the guarantor subsidiaries; (e) the non-guarantor subsidiaries; (f) elimination and adjusting entries necessary to combine the Parent, Intermediate Parent Guarantor and Issuer with the guarantor and non-guarantor subsidiaries; and (g) the Company on a consolidated basis. As a result of the Company’s refinancing plans certain entities previously reported as non-guarantor subsidiaries within the Company’s consolidating condensed financial statements are now presented as guarantor subsidiaries.

In addition, the Company’s secured debt is unconditionally guaranteed by certain existing non-domestic wholly-owned subsidiaries, the net revenue, assets and operating income of which are included in the non-guarantor subsidiaries.

TRAVELPORT LIMITED

CONSOLIDATING CONDENSED STATEMENTS OF OPERATIONS

For the Three Months Ended March 31, 2013

(in $ millions)	Parent Guarantor		Intermediate Parent Guarantor		Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Travelport Consolidated
Net revenue		—		—		—		212		336		—		548
Costs and expenses
Cost of revenue		—		—		—		138		195		—		333
Selling, general and administrative		8		—		(4)		22		68		—		94
Depreciation and amortization		—		—		—		39		13		—		52
Total costs and expenses		8		—		(4)		199		276		—		479
Operating (loss) income		(8)		—		4		13		60		—		69
Interest expense, net		—		—		(68)		(2)		—		—		(70)
Equity in (losses) earnings of subsidiaries		(2)		(55)		10		—		—		47		—
(Loss) income before income taxes and equity in earnings of Orbitz Worldwide		(10)		(55)		(54)		11		60		47		(1)
Provision for income taxes		—		—		(1)		(1)		(9)		—		(11)
Equity in earnings of investment in Orbitz Worldwide		—		2		—		—		—		—		2
Net (loss) income		(10)		(53)		(55)		10		51		47		(10)
Net loss attributable to non-controlling interest in subsidiaries		—		—		—		—		—		—		—
Net (loss) income attributable to the Company		(10)		(53)		(55)		10		51		47		(10)

TRAVELPORT LIMITED

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended March 31, 2013

(in $ millions)	Parent Guarantor		Intermediate Parent Guarantor		Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Travelport Consolidated
Net (loss) income		(10)		(53)		(55)		10		51		47		(10)
Other comprehensive income (loss), net of tax
Currency translation adjustment, net of tax		—		—		—		—		(3)		—		(3)
Unrealized gain on equity investment, net of tax		—		5		—		—		—		—		5
Equity in other comprehensive income (loss) of subsidiaries		2		—		—		—		—		(2)		—
Other comprehensive income (loss), net of tax		2		5		—		—		(3)		(2)		2
Comprehensive (loss) income		(8)		(48)		(55)		10		48		45		(8)
Comprehensive income attributable to non-controlling interest in subsidiaries		—		—		—		—		—		—		—
Comprehensive (loss) income attributable to the Company		(8)		(48)		(55)		10		48		45		(8)

TRAVELPORT LIMITED

CONSOLIDATING CONDENSED STATEMENTS OF OPERATIONS

For the Three Months Ended March 31, 2012

(in $ millions)	Parent Guarantor		Intermediate Parent Guarantor		Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Travelport Consolidated
Net revenue		—		—		—		239		311		—		550
Costs and expenses
Cost of revenue		—		—		—		142		180		—		322
Selling, general and administrative		6		—		5		31		63		—		105
Depreciation and amortization		—		—		—		41		16		—		57
Total costs and expenses		6		—		5		214		259		—		484
Operating (loss) income		(6)		—		(5)		25		52		—		66
Interest expense, net		—		—		(66)		(1)		—		—		(67)
Equity in (losses) earnings of subsidiaries		(5)		(47)		24		—		—		28		—
(Loss) income before income taxes and equity in losses of investment in Orbitz Worldwide		(11)		(47)		(47)		24		52		28		(1)
Provision for income taxes		—		—		—		—		(8)		—		(8)
Equity in losses of investment in Orbitz Worldwide		—		(3)		—		—		—		—		(3)
Net (loss) income		(11)		(50)		(47)		24		44		28		(12)
Net loss attributable to non-controlling interest in subsidiaries		—		—		—		—		1		—		1
Net (loss) income attributable to the Company		(11)		(50)		(47)		24		45		28		(11)

TRAVELPORT LIMITED

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended March 31, 2012

(in $ millions)	Parent Guarantor		Intermediate Parent Guarantor		Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Travelport Consolidated
Net (loss) income		(11)		(50)		(47)		24		44		28		(12)
Other comprehensive income (loss), net of tax
Currency translation adjustment, net of tax		—		—		—		—		2		—		2
Unrealized loss on equity investment, net of tax		—		(2)		—		—		—		—		(2)
Equity in other comprehensive income (loss) of subsidiaries		—		—		—		—		—		—		—
Other comprehensive income (loss), net of tax		—		(2)		—		—		2		—		—
Comprehensive (loss) income		(11)		(52)		(47)		24		46		28		(12)
Comprehensive loss attributable to non-controlling interest in subsidiaries		—		—		—		—		1		—		1
Comprehensive (loss) income attributable to the Company		(11)		(52)		(47)		24		47		28		(11)

TRAVELPORT LIMITED

CONSOLIDATING CONDENSED BALANCE SHEETS

As of March 31, 2013

(in $ millions)	Parent Guarantor		Intermediate Parent Guarantor		Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Travelport Consolidated
Assets
Current assets:
Cash and cash equivalents		—		—		49		1		58		—		108
Accounts receivable, net		—		—		—		60		150		—		210
Deferred income taxes		—		—		—		—		2		—		2
Other current assets		—		—		19		34		199		—		252
Total current assets		—		—		68		95		409		—		572
Investment in subsidiary/intercompany		(1,214)		(1,316)		1,867		—		—		663		—
Property and equipment, net		—		—		—		377		25		—		402
Goodwill		—		—		—		960		26		—		986
Trademarks and tradenames		—		—		—		313		1		—		314
Other intangible assets, net		—		—		—		576		3		—		579
Cash held as collateral		—		—		137		—		—		—		137
Investment in Orbitz Worldwide		—		7		—		—		—		—		7
Non-current deferred income tax		—		—		—		—		6		—		6
Other non-current assets		6		—		67		55		75		—		203
Total assets		(1,208)		(1,309)		2,139		2,376		545		663		3,206
Liabilities and equity
Current liabilities:
Accounts payable		—		—		—		40		28		—		68
Accrued expenses and other current liabilities		18		—		77		121		345		—		561
Deferred income taxes		—		—		—		38		—		—		38
Current portion of long-term debt		—		—		73		19		—		—		92
Total current liabilities		18		—		150		218		373		—		759
Long-term debt		—		—		3,299		73		—		—		3,372
Deferred income taxes		—		—		—		5		3		—		8
Other non-current liabilities		—		—		6		213		58		—		277
Total liabilities		18		—		3,455		509		434		—		4,416
Total shareholders’ equity/intercompany		(1,226)		(1,309)		(1,316)		1,867		95		663		(1,226)
Equity attributable to non-controlling interest in subsidiaries		—		—		—		—		16		—		16
Total equity and intercompany		(1,226)		(1,309)		(1,316)		1,867		111		663		(1,210)
Total liabilities and equity		(1,208)		(1,309)		2,139		2,376		545		663		3,206

TRAVELPORT LIMITED

CONSOLIDATING CONDENSED BALANCE SHEETS

As of December 31, 2012

(in $ millions)	Parent Guarantor		Intermediate Parent Guarantor		Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Travelport Consolidated
Assets
Current assets:
Cash and cash equivalents		—		—		51		3		56		—		110
Accounts receivable, net		—		—		—		45		105		—		150
Deferred income taxes		—		—		—		—		2		—		2
Other current assets		—		—		26		30		164		—		220
Total current assets		—		—		77		78		327		—		482
Investment in subsidiary/intercompany		(1,203)		(1,921)		1,243		—		—		1,881		—
Property and equipment, net		—		—		—		358		58		—		416
Goodwill		—		—		—		846		140		—		986
Trademarks and tradenames		—		—		—		190		124		—		314
Other intangible assets, net		—		—		—		217		382		—		599
Cash held as collateral		—		—		137		—		—		—		137
Non-current deferred income tax		—		—		—		—		6		—		6
Other non-current assets		—		—		80		60		78		—		218
Total assets		(1,203)		(1,921)		1,537		1,749		1,115		1,881		3,158
Liabilities and equity
Current liabilities:
Accounts payable		—		—		—		47		27		—		74
Accrued expenses and other current liabilities		15		—		117		113		292		—		537
Deferred income taxes		—		—		—		38		—		—		38
Current portion of long-term debt		—		—		20		18		—		—		38
Total current liabilities		15		—		137		216		319		—		687
Long-term debt		—		—		3,314		78		—		—		3,392
Deferred income taxes		—		—		—		4		3		—		7
Other non-current liabilities		—		—		7		208		59		—		274
Total liabilities		15		—		3,458		506		381		—		4,360
Total shareholders’ equity/intercompany		(1,218)		(1,921)		(1,921)		1,243		718		1,881		(1,218)
Equity attributable to non-controlling interest in subsidiaries		—		—		—		—		16		—		16
Total equity and intercompany		(1,218)		(1,921)		(1,921)		1,243		734		1,881		(1,202)
Total liabilities and equity		(1,203)		(1,921)		1,537		1,749		1,115		1,881		3,158

TRAVELPORT LIMITED

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2013

(in $ millions)	Parent Guarantor		Intermediate Parent Guarantor		Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Travelport Consolidated
Operating activities
Net (loss) income		(10)		(53)		(55)		10		51		47		(10)
Adjustments to reconcile net (loss) income from operations to net cash (used in) provided by operating activities:
Depreciation and amortization		—		—		—		39		13		—		52
Amortization of debt finance costs		—		—		7		—		—		—		7
Non-cash interest on Second Priority Secured Notes		—		—		4		—		—		—		4
Gain on foreign exchange derivative instruments		—		—		7		—		—		—		7
Equity in losses (earnings) of subsidiaries		2		55		(10)		—		—		(47)		—
Equity in earnings of investment in Orbitz Worldwide		—		(2)		—		—		—		—		(2)
Changes in assets and liabilities:
Accounts receivable		—		—		—		(15)		(45)		—		(60)
Other current assets		—		—		—		(4)		(8)		—		(12)
Accounts payable, accrued expenses and other current liabilities		3		—		(33)		3		25		—		(2)
Other		—		—		—		2		(7)		—		(5)
Net cash (used in) provided by operating activities		(5)		—		(80)		35		29		—		(21)
Investing activities
Property and equipment additions		—		—		—		(23)		—		—		(23)
Net intercompany funding		5		—		32		(10)		(27)		—		—
Net cash provided by (used in) investing activities		5		—		32		(33)		(27)		—		(23)
Financing activities
Proceeds from revolver borrowings		—		—		53		—		—		—		53
Repayment of capital lease obligations		—		—		—		(4)		—		—		(4)
Debt finance costs		—		—		(2)		—		—		—		(2)
Payments on settlement of foreign exchange derivative contracts		—		—		(7)		—		—		—		(7)
Proceeds from settlement of foreign exchange derivative contracts		—		—		2		—		—		—		2
Net cash provided by (used in) financing activities		—		—		46		(4)		—		—		42
Net (decrease) increase in cash and cash equivalents		—		—		(2)		(2)		2		—		(2)
Cash and cash equivalents at beginning of period		—		—		51		3		56		—		110
Cash and cash equivalents of operations at end of period		—		—		49		1		58		—		108

TRAVELPORT LIMITED

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2012

(in $ millions)	Parent Guarantor		Intermediate Parent Guarantor		Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Travelport Consolidated
Operating activities
Net (loss) income		(11)		(50)		(47)		24		44		28		(12)
Adjustments to reconcile net (loss) income from operations to net cash (used in) provided by operating activities:
Depreciation and amortization		—		—		—		41		16		—		57
Equity based compensation		2		—		—		—		—		—		2
Amortization of debt finance costs		—		—		9		—		—		—		9
Non-cash interest on Second Priority Secured Notes		—		—		3		—		—		—		3
Gain on interest rate derivative instruments		—		—		(2)		—		—		—		(2)
Gain on foreign exchange derivative instruments		—		—		(6)		—		—		—		(6)
Equity in losses of investment in Orbitz Worldwide		—		3		—		—		—		—		3
Equity in losses (earnings) of subsidiaries		5		47		(24)		—		—		(28)		—
FASA liability		—		—		—		(3)		—		—		(3)
Defined benefit pension plan funding		—		—		—		(2)		—		—		(2)
Changes in assets and liabilities:
Accounts receivable		—		—		—		(5)		(42)		—		(47)
Other current assets		—		—		2		1		(14)		—		(11)
Accounts payable, accrued expenses and other current liabilities		—		—		24		2		(6)		—		20
Other		—		1		—		5		12		—		18
Net cash (used in) provided by operating activities		(4)		1		(41)		63		10		—		29
Investing activities
Property and equipment additions		—		—		—		(15)		—		—		(15)
Net intercompany funding		5		(1)		33		(43)		6		—		—
Net cash provided by (used in) investing activities		5		(1)		33		(58)		6		—		(15)
Financing activities
Repayment of revolver borrowings		—		—		(35)		—		—		—		(35)
Proceeds from revolver borrowings		—		—		25		—		—		—		25
Repayment of capital lease obligations		—		—		—		(4)		—		—		(4)
Payments on settlement of derivative contracts		—		—		(16)		—		—		—		(16)
Net share settlement for equity based compensation		(1)		—		—		—		—		—		(1)
Contribution from non-controlling interest shareholders		—		—		—		—		2		—		2
Net cash (used in) provided by financing activities		(1)		—		(26)		(4)		2		—		(29)
Effects of changes in exchange rates on cash and cash equivalents		—		—		—		—		—		—		—
Net (decrease) increase in cash and cash equivalents		—		—		(34)		1		18		—		(15)
Cash and cash equivalents at beginning of period		—		—		83		—		41		—		124
Cash and cash equivalents at end of period		—		—		49		1		59		—		109