Orbitz Worldwide

3 Months Ended

Mar. 31, 2014

Equity Method Investments And Joint Ventures [Abstract]

Orbitz Worldwide

3. Orbitz Worldwide

The Company accounts for its investment of approximately 44% in Orbitz Worldwide under the equity method of accounting and records its share of Orbitz Worldwide’s net income (loss) and other comprehensive income (loss) in its consolidated condensed statements of operations and consolidated condensed statements of comprehensive (loss) income, respectively.

As of March 31, 2014 and December 31, 2013, the carrying value of the Company’s investment in Orbitz Worldwide was $13 million and $19 million, respectively. The fair value of the Company’s investment in Orbitz Worldwide as of March 31, 2014 was approximately $381 million.

Presented below are the summary results of operations for Orbitz Worldwide for the three months ended March 31, 2014 and 2013:

(in $ millions)	Three Months Ended March 31, 2014		Three Months Ended March 31, 2013
Net revenue		210		203
Operating expenses		199		206
Operating income (loss)		11		(3)
Interest expense, net		(10)		(9)
Income (loss) before income taxes		1		(12)
(Provision for) benefit from income taxes		(7)		158
Net (loss) income		(6)		146

The Company recorded losses of $4 million and earnings of $2 million related to its investment in Orbitz Worldwide for the three months ended March 31, 2014 and 2013, respectively, within the equity in (losses) earnings of investment in Orbitz Worldwide in the Company’s consolidated condensed statements of operations.

During the three months ended March 31, 2013, Orbitz Worldwide concluded that a significant portion of its US valuation allowance on deferred tax assets was no longer required, resulting in a recognition of a benefit from income taxes of $158 million in its consolidated condensed statements of operations.

Net revenue disclosed above includes approximately $25 million and $22 million of net revenue earned by Orbitz Worldwide through transactions with the Company during the three months ended March 31, 2014 and 2013, respectively.

As of March 31, 2014 and December 31, 2013, the Company had balances payable to Orbitz Worldwide of approximately $18 million and $12 million, respectively, which are included on the Company’s consolidated condensed balance sheets within accrued expenses and other current liabilities.