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Bermuda
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98-0505105
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(State or other jurisdiction of
incorporation or organization) |
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(I.R.S. Employer
Identification Number) |
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Large accelerated filer ☐
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Accelerated filer ☐
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Non-accelerated filer ☒
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Smaller reporting company ☐
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(Do not check if a smaller reporting company)
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Page
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PART I. FINANCIAL INFORMATION
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| | | | 1 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 4 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 8 | | | |
| | | | 9 | | | |
| | | | 20 | | | |
| | | | 39 | | | |
| | | | 39 | | | |
PART II. OTHER INFORMATION
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| | | | 40 | | | |
| | | | 40 | | | |
| | | | 40 | | | |
| | | | 40 | | | |
| | | | 41 | | | |
| | | | 41 | | | |
| | | | 41 | | | |
| | | | 42 | | |
(in $ millions, except share data)
|
| |
Three Months
Ended June 30, 2015 |
| |
Three Months
Ended June 30, 2014 |
| |
Six Months
Ended June 30, 2015 |
| |
Six Months
Ended June 30, 2014 |
| ||||||||||||
Net revenue
|
| | | $ | 554 | | | | | $ | 551 | | | | | $ | 1,126 | | | | | $ | 1,123 | | |
Costs and expenses | | | | | | ||||||||||||||||||||
Cost of revenue
|
| | | | 335 | | | | | | 337 | | | | | | 684 | | | | | | 690 | | |
Selling, general and administrative
|
| | | | 98 | | | | | | 97 | | | | | | 226 | | | | | | 185 | | |
Depreciation and amortization
|
| | | | 58 | | | | | | 57 | | | | | | 119 | | | | | | 113 | | |
Total costs and expenses
|
| | | | 491 | | | | | | 491 | | | | | | 1,029 | | | | | | 988 | | |
Operating income
|
| | | | 63 | | | | | | 60 | | | | | | 97 | | | | | | 135 | | |
Interest expense, net
|
| | | | (39) | | | | | | (87) | | | | | | (78) | | | | | | (170) | | |
Loss on early extinguishment of debt
|
| | | | — | | | | | | (9) | | | | | | — | | | | | | (14) | | |
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | 52 | | | | | | 6 | | | | | | 52 | | |
Income before income taxes and share of earnings (losses) in equity method investments
|
| | | | 24 | | | | | | 16 | | | | | | 25 | | | | | | 3 | | |
Provision for income taxes
|
| | | | (8) | | | | | | (12) | | | | | | (16) | | | | | | (22) | | |
Share of earnings (losses) in equity method investments
|
| | | | — | | | | | | 1 | | | | | | — | | | | | | (3) | | |
Net income (loss)
|
| | | | 16 | | | | | | 5 | | | | | | 9 | | | | | | (22) | | |
Net income attributable to non-controlling interest in subsidiaries
|
| | | | (1) | | | | | | (1) | | | | | | (2) | | | | | | (3) | | |
Net income (loss) attributable to the
Company |
| | | $ | 15 | | | | | $ | 4 | | | | | $ | 7 | | | | | $ | (25) | | |
Income (loss) per share – Basic: | | | | | | ||||||||||||||||||||
Income (loss) per share
|
| | | $ | 0.13 | | | | | $ | 0.05 | | | | | $ | 0.06 | | | | | $ | (0.38) | | |
Weighted average common shares outstanding – Basic
|
| | | | 122,269,482 | | | | | | 69,376,053 | | | | | | 121,842,792 | | | | | | 66,304,416 | | |
Income (loss) per share – Diluted: | | | | | | ||||||||||||||||||||
Income (loss) per share
|
| | | $ | 0.12 | | | | | $ | 0.05 | | | | | $ | 0.06 | | | | | $ | (0.38) | | |
Weighted average common shares outstanding – Diluted
|
| | | | 122,717,897 | | | | | | 71,426,025 | | | | | | 122,672,763 | | | | | | 66,304,416 | | |
Cash dividends declared per Common
Share |
| | | $ | 0.075 | | | | | | — | | | | | $ | 0.15 | | | | | | — | | |
(in $ millions)
|
| |
Three Months
Ended June 30, 2015 |
| |
Three Months
Ended June 30, 2014 |
| |
Six Months
Ended June 30, 2015 |
| |
Six Months
Ended June 30, 2014 |
| ||||||||||||||||
Net income (loss)
|
| | | $ | 16 | | | | | $ | 5 | | | | | $ | 9 | | | | | $ | (22) | | | ||||
Other comprehensive income (loss), net of tax: | | | | | | ||||||||||||||||||||||||
Currency translation adjustment, net of tax
|
| | | | — | | | | | | 1 | | | | | | (6) | | | | | | 2 | | | ||||
Changes in gain on available-for-sale securities, net
of tax |
| | | | — | | | | | | — | | | | | | (6) | | | | | | — | | | ||||
Changes in loss on cash flow hedges, net of tax
|
| | | | — | | | | | | 5 | | | | | | — | | | | | | 4 | | | ||||
Unrealized loss on equity investment, net of tax
|
| | | | — | | | | | | (3) | | | | | | — | | | | | | (4) | | | ||||
Other comprehensive income (loss), net of tax
|
| | | | — | | | | | | 3 | | | | | | (12) | | | | | | 2 | | | ||||
Comprehensive income (loss)
|
| | | | 16 | | | | | | 8 | | | | | | (3) | | | | | | (20) | | | ||||
Comprehensive income attributable to non-controlling interest in subsidiaries
|
| | | | (1) | | | | | | (1) | | | | | | (2) | | | | | | (3) | | | ||||
Comprehensive income (loss) attributable to the Company
|
| | | $ | 15 | | | | | $ | 7 | | | | | $ | (5) | | | | | $ | (23) | | | ||||
|
(in $ millions, except share data)
|
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June 30,
2015 |
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December 31,
2014 |
| ||||||||
Assets | | | | ||||||||||||
Current assets: | | | | ||||||||||||
Cash and cash equivalents
|
| | | $ | 127 | | | | | $ | 139 | | | ||
Accounts receivable (net of allowances for doubtful accounts of $16 and
$14) |
| | | | 232 | | | | | | 184 | | | ||
Deferred income taxes
|
| | | | 3 | | | | | | 5 | | | ||
Other current assets
|
| | | | 93 | | | | | | 84 | | | ||
Total current assets
|
| | | | 455 | | | | | | 412 | | | ||
Property and equipment, net
|
| | | | 438 | | | | | | 414 | | | ||
Goodwill
|
| | | | 996 | | | | | | 997 | | | ||
Trademarks and tradenames
|
| | | | 314 | | | | | | 314 | | | ||
Other intangible assets, net
|
| | | | 585 | | | | | | 619 | | | ||
Cash held as collateral
|
| | | | 22 | | | | | | 26 | | | ||
Deferred income taxes
|
| | | | 9 | | | | | | 9 | | | ||
Other non-current assets
|
| | | | 91 | | | | | | 101 | | | ||
Total assets
|
| | | $ | 2,910 | | | | | $ | 2,892 | | | ||
Liabilities and equity | | | | ||||||||||||
Current liabilities: | | | | ||||||||||||
Accounts payable
|
| | | $ | 69 | | | | | $ | 73 | | | ||
Accrued expenses and other current liabilities
|
| | | | 440 | | | | | | 426 | | | ||
Current portion of long-term debt
|
| | | | 58 | | | | | | 56 | | | ||
Total current liabilities
|
| | | | 567 | | | | | | 555 | | | ||
Long-term debt
|
| | | | 2,401 | | | | | | 2,384 | | | ||
Deferred income taxes
|
| | | | 56 | | | | | | 54 | | | ||
Other non-current liabilities
|
| | | | 240 | | | | | | 237 | | | ||
Total liabilities
|
| | | | 3,264 | | | | | | 3,230 | | | ||
Commitments and contingencies (Note 9) | | | | ||||||||||||
Shareholders’ equity (deficit): | | | | ||||||||||||
Preference shares ($0.0025 par value; 225,000,000 shares authorized; no shares
issued and outstanding as of both June 30, 2015 and December 31, 2014) |
| | | | — | | | | | | — | | | ||
Common shares ($0.0025 par value; 560,000,000 shares authorized; 122,492,876 and 121,411,360 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively)
|
| | | | — | | | | | | — | | | ||
Additional paid in capital
|
| | | | 2,702 | | | | | | 2,715 | | | ||
Accumulated deficit
|
| | | | (2,891) | | | | | | (2,898) | | | ||
Accumulated other comprehensive loss
|
| | | | (186) | | | | | | (174) | | | ||
Total shareholders’ equity (deficit)
|
| | | | (375) | | | | | | (357) | | | ||
Equity attributable to non-controlling interest in subsidiaries
|
| | | | 21 | | | | | | 19 | | | ||
Total equity (deficit)
|
| | | | (354) | | | | | | (338) | | | ||
Total liabilities and equity
|
| | | $ | 2,910 | | | | | $ | 2,892 | | | ||
|
(in $ millions)
|
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Six Months
Ended June 30, 2015 |
| |
Six Months
Ended June 30, 2014 |
| ||||||||
Operating activities | | | | ||||||||||||
Net income (loss)
|
| | | $ | 9 | | | | | $ | (22) | | | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
| | | ||||||||||||
Depreciation and amortization
|
| | | | 119 | | | | | | 113 | | | ||
Amortization of customer loyalty payments
|
| | | | 36 | | | | | | 37 | | | ||
Gain on sale of shares of Orbitz Worldwide
|
| | | | (6) | | | | | | (52) | | | ||
Amortization of debt finance costs
|
| | | | 3 | | | | | | 6 | | | ||
Accrual of repayment fee and amortization of debt discount
|
| | | | 2 | | | | | | 5 | | | ||
Loss on early extinguishment of debt
|
| | | | — | | | | | | 14 | | | ||
(Gain) loss on foreign exchange derivative instruments
|
| | | | (8) | | | | | | 1 | | | ||
Payment-in-kind interest
|
| | | | — | | | | | | 12 | | | ||
Share of losses in equity method investments
|
| | | | — | | | | | | 3 | | | ||
Equity-based compensation
|
| | | | 19 | | | | | | 9 | | | ||
Deferred income taxes
|
| | | | 4 | | | | | | 5 | | | ||
Customer loyalty payments
|
| | | | (42) | | | | | | (45) | | | ||
Pension liability contribution
|
| | | | (2) | | | | | | (3) | | | ||
Changes in assets and liabilities:
|
| | | ||||||||||||
Accounts receivable
|
| | | | (48) | | | | | | (38) | | | ||
Other current assets
|
| | | | (5) | | | | | | 9 | | | ||
Accounts payable, accrued expenses and other current liabilities
|
| | | | (1) | | | | | | (22) | | | ||
Other
|
| | | | 12 | | | | | | 10 | | | ||
Net cash provided by operating activities
|
| | | $ | 92 | | | | | $ | 42 | | | ||
Investing activities | | | | ||||||||||||
Property and equipment additions
|
| | | $ | (52) | | | | | $ | (54) | | | ||
Proceeds from sale of shares of Orbitz Worldwide
|
| | | | 6 | | | | | | 54 | | | ||
Business acquired, net of cash
|
| | | | — | | | | | | (10) | | | ||
Purchase of equity method investment
|
| | | | — | | | | | | (10) | | | ||
Net cash used in investing activities
|
| | | $ | (46) | | | | | $ | (20) | | | ||
|
(in $ millions)
|
| |
Six Months
Ended June 30, 2015 |
| |
Six Months
Ended June 30, 2014 |
| ||||||
Financing activities | | | | ||||||||||
Proceeds from revolver borrowings
|
| | | $ | — | | | | | $ | 50 | | |
Repayment of revolver borrowings
|
| | | | — | | | | | | (50) | | |
Repayment of term loans
|
| | | | (12) | | | | | | (8) | | |
Repayment of capital lease obligations
|
| | | | (16) | | | | | | (15) | | |
Release of cash provided as collateral
|
| | | | 4 | | | | | | 9 | | |
Purchase of non-controlling interest in subsidiary
|
| | | | — | | | | | | (65) | | |
Dividend to shareholders
|
| | | | (19) | | | | | | — | | |
Payment related to early extinguishment of debt
|
| | | | — | | | | | | (3) | | |
Tax withholding for equity awards
|
| | | | (14) | | | | | | — | | |
Other
|
| | | | — | | | | | | (1) | | |
Net cash used in financing activities
|
| | | $ | (57) | | | | | $ | (83) | | |
Effect of changes in exchange rate on cash and cash equivalents
|
| | | | (1) | | | | | | — | | |
Net decrease in cash and cash equivalents
|
| | | | (12) | | | | | | (61) | | |
Cash and cash equivalents at beginning of period
|
| | | | 139 | | | | | | 154 | | |
Cash and cash equivalents at end of period
|
| | | $ | 127 | | | | | $ | 93 | | |
Supplementary disclosures of cash flow information | | | | ||||||||||
Interest payments
|
| | | | 73 | | | | | | 150 | | |
Income tax payments, net
|
| | | | 13 | | | | | | 13 | | |
Non-cash exchange of debt for equity
|
| | | | — | | | | | | 317 | | |
Non-cash capital leases additions (Note 4)
|
| | | | 25 | | | | | | 6 | | |
Non-cash purchase of property and equipment
|
| | | | 27 | | | | | | — | | |
| | |
Common Shares
|
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Loss |
| |
Non-
Controlling Interest in Subsidiaries |
| |
Total
Equity (Deficit) |
| |||||||||||||||||||||||||||||||
(in $ millions, except share data)
|
| |
Number
|
| |
Amount
|
| |||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2014
|
| | | | 121,411,360 | | | | | $ | — | | | | | $ | 2,715 | | | | | $ | (2,898) | | | | | $ | (174) | | | | | $ | 19 | | | | | $ | (338) | | | |||||||
Dividend to shareholders
|
| | | | — | | | | | | — | | | | | | (19) | | | | | | — | | | | | | — | | | | | | — | | | | | | (19) | | | |||||||
Equity-based compensation
|
| | | | 1,857,479 | | | | | | — | | | | | | 20 | | | | | | — | | | | | | — | | | | | | — | | | | | | 20 | | | |||||||
Tax withholding for equity
awards |
| | | | (775,963) | | | | | | — | | | | | | (14) | | | | | | — | | | | | | — | | | | | | — | | | | | | (14) | | | |||||||
Comprehensive income (loss), net of
tax |
| | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | (12) | | | | | | 2 | | | | | | (3) | | | |||||||
Balance as of June 30, 2015
|
| | | | 122,492,876 | | | | | $ | — | | | | | $ | 2,702 | | | | | $ | (2,891) | | | | | $ | (186) | | | | | $ | 21 | | | | | $ | (354) | | | |||||||
|
(in $ millions)
|
| |
June 30,
2015 |
| |
December 31,
2014 |
| ||||||||
Sales and use tax receivables
|
| | | $ | 26 | | | | | $ | 28 | | | ||
Prepaid expenses
|
| | | | 26 | | | | | | 20 | | | ||
Restricted cash
|
| | | | 20 | | | | | | 9 | | | ||
Prepaid incentives
|
| | | | 12 | | | | | | 13 | | | ||
Available-for-sale securities
|
| | | | — | | | | | | 6 | | | ||
Derivative assets
|
| | | | 3 | | | | | | — | | | ||
Other
|
| | | | 6 | | | | | | 8 | | | ||
| | | | $ | 93 | | | | | $ | 84 | | | ||
|
| | |
June 30, 2015
|
| |
December 31, 2014
|
| ||||||||||||||||||||||||||||||||||||
(in $ millions)
|
| |
Cost
|
| |
Accumulated
depreciation |
| |
Net
|
| |
Cost
|
| |
Accumulated
depreciation |
| |
Net
|
| ||||||||||||||||||||||||
Capitalized software
|
| | | $ | 816 | | | | | $ | (582) | | | | | $ | 234 | | | | | $ | 772 | | | | | $ | (554) | | | | | $ | 218 | | | ||||||
Computer equipment
|
| | | | 280 | | | | | | (148) | | | | | | 132 | | | | | | 297 | | | | | | (175) | | | | | | 122 | | | ||||||
Building and leasehold improvements
|
| | | | 23 | | | | | | (8) | | | | | | 15 | | | | | | 24 | | | | | | (9) | | | | | | 15 | | | ||||||
Construction in progress
|
| | | | 57 | | | | | | — | | | | | | 57 | | | | | | 59 | | | | | | — | | | | | | 59 | | | ||||||
| | | | $ | 1,176 | | | | | $ | (738) | | | | | $ | 438 | | | | | $ | 1,152 | | | | | $ | (738) | | | | | $ | 414 | | | ||||||
|
(in $ millions)
|
| |
January 1,
2015 |
| |
Additions
|
| |
Retirements
|
| |
Foreign
Exchange |
| |
June 30,
2015 |
| ||||||||||||||||||||
Non-Amortizable Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Goodwill
|
| | | $ | 997 | | | | | $ | — | | | | | $ | — | | | | | $ | (1) | | | | | $ | 996 | | | |||||
Trademarks and tradenames
|
| | | | 314 | | | | | | — | | | | | | — | | | | | | — | | | | | | 314 | | | |||||
Other Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Acquired intangible assets
|
| | | | 1,129 | | | | | | — | | | | | | (3) | | | | | | 1 | | | | | | 1,127 | | | |||||
Accumulated amortization
|
| | | | (687) | | | | | | (38) | | | | | | 3 | | | | | | (1) | | | | | | (723) | | | |||||
Acquired intangible assets, net
|
| | | | 442 | | | | | | (38) | | | | | | — | | | | | | — | | | | | | 404 | | | |||||
Customer loyalty payments
|
| | | | 334 | | | | | | 43 | | | | | | (43) | | | | | | (3) | | | | | | 331 | | | |||||
Accumulated amortization
|
| | | | (157) | | | | | | (36) | | | | | | 43 | | | | | | — | | | | | | (150) | | | |||||
Customer loyalty payments, net
|
| | | | 177 | | | | | | 7 | | | | | | — | | | | | | (3) | | | | | | 181 | | | |||||
Other intangible assets, net
|
| | | $ | 619 | | | | | $ | (31) | | | | | $ | — | | | | | $ | (3) | | | | | $ | 585 | | | |||||
|
(in $ millions)
|
| |
January 1,
2014 |
| |
Additions
|
| |
Retirements
|
| |
Foreign
Exchange |
| |
June 30,
2014 |
| ||||||||||||||||||||
Non-Amortizable Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Goodwill
|
| | | $ | 986 | | | | | $ | 14 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,000 | | | |||||
Trademarks and tradenames
|
| | | | 314 | | | | | | — | | | | | | — | | | | | | — | | | | | | 314 | | | |||||
Other Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Acquired intangible assets
|
| | | | 1,129 | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 1,130 | | | |||||
Accumulated amortization
|
| | | | (610) | | | | | | (39) | | | | | | — | | | | | | — | | | | | | (649) | | | |||||
Acquired intangible assets, net
|
| | | | 519 | | | | | | (39) | | | | | | — | | | | | | 1 | | | | | | 481 | | | |||||
Customer loyalty payments
|
| | | | 306 | | | | | | 72 | | | | | | (44) | | | | | | 1 | | | | | | 335 | | | |||||
Accumulated amortization
|
| | | | (154) | | | | | | (37) | | | | | | 44 | | | | | | — | | | | | | (147) | | | |||||
Customer loyalty payments, net
|
| | | | 152 | | | | | | 35 | | | | | | — | | | | | | 1 | | | | | | 188 | | | |||||
Other intangible assets, net
|
| | | $ | 671 | | | | | $ | (4) | | | | | $ | — | | | | | $ | 2 | | | | | $ | 669 | | | |||||
|
(in $ millions)
|
| |
June 30,
2015 |
| |
December 31,
2014 |
| ||||||||
Accrued commissions and incentives
|
| | | $ | 272 | | | | | $ | 260 | | | ||
Accrued payroll and related
|
| | | | 56 | | | | | | 59 | | | ||
Deferred revenue
|
| | | | 29 | | | | | | 27 | | | ||
Customer prepayments
|
| | | | 20 | | | | | | 9 | | | ||
Accrued interest expense
|
| | | | 18 | | | | | | 18 | | | ||
Income tax payable
|
| | | | 15 | | | | | | 16 | | | ||
Derivative contracts
|
| | | | 10 | | | | | | 16 | | | ||
Pension and post-retirement benefit liabilities
|
| | | | 2 | | | | | | 2 | | | ||
Other
|
| | | | 18 | | | | | | 19 | | | ||
| | | | $ | 440 | | | | | $ | 426 | | | ||
|
(in $ millions)
|
| |
Interest
rate |
| |
Maturity
|
| |
June 30,
2015 |
| |
December 31,
2014 |
| ||||||||
Secured debt | | | | | | | | | | | | | | | | | | | | ||
Senior Secured Credit Agreement | | | | | | | | | | | | | | | | | | | | ||
Term loans
|
| | | | | | | | | | | | | | | | | | | ||
Dollar denominated(1)
|
| | L+4.75% | | | September 2021 | | | | $ | 2,337 | | | | | $ | 2,347 | | | ||
Revolver borrowings
|
| | | | | | | | | | | | | | | | | | | ||
Dollar denominated
|
| | L+5.00% | | | September 2019 | | | | | — | | | | | | — | | | ||
Capital leases and other indebtedness
|
| | | | | | | | | | 122 | | | | | | 93 | | | ||
Total debt
|
| | | | | | | | | | 2,459 | | | | | | 2,440 | | | ||
Less: current portion
|
| | | | | | | | | | 58 | | | | | | 56 | | | ||
Long-term debt
|
| | | | | | | | | $ | 2,401 | | | | | $ | 2,384 | | | ||
|
| | |
Balance Sheet
Location |
| |
Fair Value Asset
|
| |
Balance Sheet
Location |
| |
Fair Value (Liability)
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
June 30,
2015 |
| |
December 31,
2014 |
| |
June 30,
2015 |
| |
December 31,
2014 |
| ||||||||||||||||||||||
Foreign currency contracts
|
| |
Other current assets
|
| | | | 3 | | | | | | — | | | | Accrued expenses and other current liabilities |
| | | | (10) | | | | | | (16) | | | ||||
| | | | | | | $ | 3 | | | | | $ | — | | | | | | | | $ | (10) | | | | | $ | (16) | | | ||||
|
(in $ millions)
|
| |
Six Months Ended
June 30, 2015 |
| |
Six Months Ended
June 30, 2014 |
| ||||||||
Net derivative (liability) asset opening balance
|
| | | $ | (16) | | | | | $ | 10 | | | ||
Total (loss) gain for the period included in net income (loss)
|
| | | | (5) | | | | | | 2 | | | ||
Total loss for period accounted through other comprehensive income (loss)
|
| | | | — | | | | | | (4) | | | ||
Settlement of foreign currency derivative contracts
|
| | | | 14 | | | | | | (3) | | | ||
Net derivative (liability) asset closing balance
|
| | | $ | (7) | | | | | $ | 5 | | | ||
|
| | |
Amount of Gain
(Loss) Recognized in Other Comprehensive Income (Loss) |
| |
Statement of Operations Location
|
| |
Amount of Gain
(Loss) Recorded in Net Income (Loss) |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Three Months
Ended June 30, |
| |
Six Months
Ended June 30, |
| | | | |
Three Months
Ended June 30, |
| |
Six Months
Ended June 30, |
| | ||||||||||||||||||||||||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
2015
|
| |
2014
|
| | | | |
2015
|
| |
2014
|
| |
2015
|
| |
2014
|
| | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging
instruments: |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps
|
| | | $ | — | | | | | $ | 5 | | | | | $ | — | | | | | $ | 4 | | | | Interest expense, net | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | ||||||||
Derivatives not designated as
hedging instruments: |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps
|
| | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Interest expense, net | | | | | — | | | | | | (8) | | | | | | — | | | | | | (8) | | | | ||||||||
Foreign currency contracts
|
| | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | |
Selling, general and administrative
|
| | | | 11 | | | | | | — | | | | | | (5) | | | | | | 2 | | | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 11 | | | | | $ | (8) | | | | | $ | (5) | | | | | $ | (6) | | | | ||||||||
|
| | | | | |
June 30, 2015
|
| |
December 31, 2014
|
| ||||||||||||||||||
(in $ millions)
|
| |
Fair Value
Hierarchy |
| |
Carrying
Amount |
| |
Fair
Value |
| |
Carrying
Amount |
| |
Fair
Value |
| ||||||||||||
Asset (liability) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale securities
|
| |
Level 1
|
| | | $ | — | | | | | $ | — | | | | | $ | 6 | | | | | $ | 6 | | |
Derivative assets
|
| |
Level 2
|
| | | | 3 | | | | | | 3 | | | | | | — | | | | | | — | | |
Derivative liabilities
|
| |
Level 2
|
| | | | (10) | | | | | | (10) | | | | | | (16) | | | | | | (16) | | |
Total debt
|
| |
Level 2
|
| | | | (2,459) | | | | | | (2,488) | | | | | | (2,440) | | | | | | (2,461) | | |
Declaration Date
|
| |
Dividend
Per Share |
| |
Record
Date |
| |
Payment
Date |
| |
Amount
(in $ million) |
| ||||||
February 19, 2015
|
| | | $ | 0.075 | | | |
March 5, 2015
|
| |
March 19, 2015
|
| | | | 9 | | |
May 1, 2015
|
| | | $ | 0.075 | | | |
June 5, 2015
|
| |
June 18, 2015
|
| | | | 10 | | |
| | |
Restricted Share Units
|
| |||||||||||
(in dollars, except number of RSUs)
|
| |
Number
|
| |
Weighted
Average Grant Date Fair Value |
| ||||||||
Balance as of January 1, 2015
|
| | | | 3,196,422 | | | | | $ | 18.68 | | | ||
Granted at fair market value
|
| | | | 132,075 | | | | | $ | 14.91 | | | ||
Vested(1) | | | | | (1,747,105) | | | | | $ | 20.00 | | | ||
Forfeited
|
| | | | (4,000) | | | | | $ | 16.00 | | | ||
Balance as of June 30, 2015
|
| | | | 1,577,392 | | | | | $ | 16.80 | | | ||
|
| | |
Stock Options
|
| |||||||||||
(in dollars, except number of stock options)
|
| |
Number
|
| |
Weighted
Average Grant Date Fair Value |
| ||||||||
Balance as of January 1, 2015
|
| | | | 1,270,871 | | | | | $ | 6.72 | | | ||
Granted at fair market value
|
| | | | 62,566 | | | | | $ | 6.10 | | | ||
Forfeited
|
| | | | — | | | | | | — | | | ||
Balance as of June 30, 2015
|
| | | | 1,333,437 | | | | | $ | 6.70 | | | ||
|
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||||||
(in $ million, except share data)
|
| |
2015
|
| |
2014
|
| |
2015
|
| |
2014
|
| ||||||||||||||||
Numerator – Basic and Diluted EPS: | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Net income (loss) attributable to the Company
|
| | | $ | 15 | | | | | $ | 4 | | | | | $ | 7 | | | | | $ | (25) | | | ||||
Denominator – Basic EPS: | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Weighted average common shares outstanding
|
| | | | 122,269,482 | | | | | | 69,376,053 | | | | | | 121,842,792 | | | | | | 66,304,416 | | | ||||
Income (loss) per share – Basic
|
| | | $ | 0.13 | | | | | $ | 0.05 | | | | | $ | 0.06 | | | | | $ | (0.38) | | | ||||
Denominator – Diluted EPS: | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Number of shares used for Basic EPS
|
| | | | 122,269,482 | | | | | | 69,376,053 | | | | | | 121,842,792 | | | | | | 66,304,416 | | | ||||
Weighted average effect of dilutive securities | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
RSUs
|
| | | | 365,951 | | | | | | 1,978,495 | | | | | | 770,326 | | | | | | — | | | ||||
Stock Options
|
| | | | 82,464 | | | | | | 71,477 | | | | | | 59,645 | | | | | | — | | | ||||
Weighted average common shares outstanding – Diluted
|
| | | | 122,717,897 | | | | | | 71,426,025 | | | | | | 122,672,763 | | | | | | 66,304,416 | | | ||||
Income (loss) per share – Diluted
|
| | | $ | 0.12 | | | | | $ | 0.05 | | | | | $ | 0.06 | | | | | $ | (0.38) | | | ||||
|
| | |
Three Months
Ended June 30, |
| |
Change
|
| |
Six Months
Ended June 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||
(in $ millions, except per share data, Reported Segments and RevPas)
|
| |
2015
|
| |
2014
|
| | | | | | | |
%
|
| |
2015
|
| |
2014
|
| | | | | | | |
%
|
| ||||||||||||||||||
Net revenue
|
| | | $ | 554 | | | | | $ | 551 | | | | | | 3 | | | | | | 1 | | | | | $ | 1,126 | | | | | $ | 1,123 | | | | | | 3 | | | | | | — | | |
Operating income
|
| | | | 63 | | | | | | 60 | | | | | | 3 | | | | | | 4 | | | | | | 97 | | | | | | 135 | | | | | | (38) | | | | | | (29) | | |
Net income (loss)
|
| | | | 16 | | | | | | 5 | | | | | | 11 | | | | | | 236 | | | | | | 9 | | | | | | (22) | | | | | | 31 | | | | | | 140 | | |
Income (loss) per share – diluted (in $)
|
| | | | 0.12 | | | | | | 0.05 | | | | | | 0.07 | | | | | | 142 | | | | | | 0.06 | | | | | | (0.38) | | | | | | 0.44 | | | | | | 115 | | |
Adjusted EBITDA(1)
|
| | | | 137 | | | | | | 146 | | | | | | (9) | | | | | | (6) | | | | | | 274 | | | | | | 297 | | | | | | (23) | | | | | | (7) | | |
Adjusted Net Income (Loss)(2)
|
| | | | 35 | | | | | | (9) | | | | | | 44 | | | | | | * | | | | | | 65 | | | | | | (6) | | | | | | 71 | | | | | | * | | |
Adjusted Income (Loss) per Share – diluted(3) (in $)
|
| | | | 0.29 | | | | | | (0.14) | | | | | | 0.43 | | | | | | * | | | | | | 0.53 | | | | | | (0.09) | | | | | | 0.62 | | | | | | * | | |
Net cash provided by operating activities
|
| | | | 81 | | | | | | 19 | | | | | | 62 | | | | | | * | | | | | | 92 | | | | | | 42 | | | | | | 50 | | | | | | 119 | | |
Adjusted Free Cash Flow(4)
|
| | | | 54 | | | | | | (14) | | | | | | 68 | | | | | | * | | | | | | 33 | | | | | | (18) | | | | | | 51 | | | | | | 283 | | |
Reported Segments (in millions)
|
| | | | 87 | | | | | | 90 | | | | | | (3) | | | | | | (3) | | | | | | 182 | | | | | | 187 | | | | | | (5) | | | | | | (3) | | |
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.00 | | | | | $ | 5.75 | | | | | $ | 0.25 | | | | | | 4 | | | | | $ | 5.86 | | | | | $ | 5.68 | | | | | $ | 0.18 | | | | | | 3 | | |
| | |
Three Months
Ended June 30, |
| |
Six Months
Ended June 30, |
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
2015
|
| |
2014
|
| ||||||||||||||||
Net income (loss)
|
| | | $ | 16 | | | | | $ | 5 | | | | | $ | 9 | | | | | $ | (22) | | | ||||
Adjustments: | | | | | | ||||||||||||||||||||||||
Amortization of intangible assets(1)
|
| | | | 19 | | | | | | 20 | | | | | | 38 | | | | | | 39 | | | ||||
Loss on early extinguishment of debt
|
| | | | — | | | | | | 9 | | | | | | — | | | | | | 14 | | | ||||
Share of (earnings) losses in equity method investments
|
| | | | — | | | | | | (1) | | | | | | — | | | | | | 3 | | | ||||
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | (52) | | | | | | (6) | | | | | | (52) | | | ||||
Equity-based compensation and related taxes
|
| | | | 9 | | | | | | 8 | | | | | | 21 | | | | | | 9 | | | ||||
Corporate and restructuring costs(2)
|
| | | | 6 | | | | | | 3 | | | | | | 8 | | | | | | 6 | | | ||||
Other – non cash(3)
|
| | | | (17) | | | | | | (1) | | | | | | (7) | | | | | | (3) | | | ||||
Tax impact of adjustments
|
| | | | 2 | | | | | | — | | | | | | 2 | | | | | | — | | | ||||
Adjusted Net Income (Loss)
|
| | | | 35 | | | | | | (9) | | | | | | 65 | | | | | | (6) | | | ||||
Adjustments: | | | | | | ||||||||||||||||||||||||
Depreciation and amortization of property and equipment
|
| | | | 39 | | | | | | 37 | | | | | | 81 | | | | | | 74 | | | ||||
Amortization of customer loyalty payments
|
| | | | 18 | | | | | | 19 | | | | | | 36 | | | | | | 37 | | | ||||
Interest expense, net
|
| | | | 39 | | | | | | 87 | | | | | | 78 | | | | | | 170 | | | ||||
Remaining provision for income taxes
|
| | | | 6 | | | | | | 12 | | | | | | 14 | | | | | | 22 | | | ||||
Adjusted EBITDA
|
| | | $ | 137 | | | | | $ | 146 | | | | | $ | 274 | | | | | $ | 297 | | | ||||
|
| | |
Six Months Ended
June 30, |
| |||||||||||
(in percentages)
|
| |
2015
|
| |
2014
|
| ||||||||
Asia Pacific
|
| | | | 22% | | | | | | 19% | | | ||
Europe
|
| | | | 30 | | | | | | 31 | | | ||
Latin America and Canada
|
| | | | 4 | | | | | | 4 | | | ||
Middle East and Africa
|
| | | | 14 | | | | | | 14 | | | ||
International
|
| | | | 70 | | | | | | 68 | | | ||
United States
|
| | | | 30 | | | | | | 32 | | | ||
Travel Commerce Platform
|
| | | | 100% | | | | | | 100% | | | ||
|
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Net revenue
|
| | | $ | 554 | | | | | $ | 551 | | | | | $ | 3 | | | | | | 1 | | | ||||
Costs and expenses | | | | | | ||||||||||||||||||||||||
Cost of revenue
|
| | | | 335 | | | | | | 337 | | | | | | (2) | | | | | | (1) | | | ||||
Selling, general and administrative
|
| | | | 98 | | | | | | 97 | | | | | | 1 | | | | | | 2 | | | ||||
Depreciation and amortization
|
| | | | 58 | | | | | | 57 | | | | | | 1 | | | | | | 2 | | | ||||
Total costs and expenses
|
| | | | 491 | | | | | | 491 | | | | | | — | | | | | | — | | | ||||
Operating income
|
| | | | 63 | | | | | | 60 | | | | | | 3 | | | | | | 4 | | | ||||
Interest expense, net
|
| | | | (39) | | | | | | (87) | | | | | | 48 | | | | | | 56 | | | ||||
Loss on early extinguishment of debt
|
| | | | — | | | | | | (9) | | | | | | 9 | | | | | | 100 | | | ||||
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | 52 | | | | | | (52) | | | | | | (100) | | | ||||
Income before income taxes and share of earnings in equity method investments
|
| | | | 24 | | | | | | 16 | | | | | | 8 | | | | | | 50 | | | ||||
Provision for income taxes
|
| | | | (8) | | | | | | (12) | | | | | | 4 | | | | | | 38 | | | ||||
Share of earnings in equity method investments
|
| | | | — | | | | | | 1 | | | | | | (1) | | | | | | (122) | | | ||||
Net income
|
| | | $ | 16 | | | | | $ | 5 | | | | | $ | 11 | | | | | | 236 | | | ||||
|
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Air
|
| | | $ | 400 | | | | | $ | 410 | | | | | $ | (10) | | | | | | (2) | | | ||||
Beyond Air
|
| | | | 122 | | | | | | 108 | | | | | | 14 | | | | | | 12 | | | ||||
Travel Commerce Platform
|
| | | | 522 | | | | | | 518 | | | | | | 4 | | | | | | 1 | | | ||||
Technology Services
|
| | | | 32 | | | | | | 33 | | | | | | (1) | | | | | | (3) | | | ||||
Net Revenue
|
| | | $ | 554 | | | | | $ | 551 | | | | | $ | 3 | | | | | | 1 | | | ||||
|
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
| | |
2015
|
| |
2014
|
| | | | | | | |
%
|
| |||||||||
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.00 | | | | | $ | 5.75 | | | | | $ | 0.25 | | | | | | 4 | | |
Reported Segments (in millions)
|
| | | | 87 | | | | | | 90 | | | | | | (3) | | | | | | (3) | | |
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Asia Pacific
|
| | | $ | 115 | | | | | $ | 100 | | | | | $ | 15 | | | | | | 15 | | | ||||
Europe
|
| | | | 150 | | | | | | 155 | | | | | | (5) | | | | | | (3) | | | ||||
Latin America and Canada
|
| | | | 24 | | | | | | 22 | | | | | | 2 | | | | | | 10 | | | ||||
Middle East and Africa
|
| | | | 75 | | | | | | 75 | | | | | | — | | | | | | — | | | ||||
International
|
| | | | 364 | | | | | | 352 | | | | | | 12 | | | | | | 3 | | | ||||
United States
|
| | | | 158 | | | | | | 166 | | | | | | (8) | | | | | | (5) | | | ||||
Travel Commerce Platform
|
| | | $ | 522 | | | | | $ | 518 | | | | | $ | 4 | | | | | | 1 | | | ||||
|
| | |
Segments (in millions)
|
| |
RevPas (in $)
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Three Months
Ended June 30, |
| |
Change
|
| |
Three Months
Ended June 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014
|
| | | | | | | |
%
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| |||||||||||||||||||||||||||||
Asia Pacific
|
| | | | 16 | | | | | | 14 | | | | | | 2 | | | | | | 13 | | | | | $ | 7.19 | | | | | $ | 7.09 | | | | | $ | 0.10 | | | | | | 2 | | | ||||||||
Europe
|
| | | | 20 | | | | | | 22 | | | | | | (2) | | | | | | (8) | | | | | $ | 7.47 | | | | | $ | 7.14 | | | | | $ | 0.33 | | | | | | 5 | | | ||||||||
Latin America and Canada
|
| | | | 4 | | | | | | 4 | | | | | | — | | | | | | 13 | | | | | $ | 5.77 | | | | | $ | 5.92 | | | | | $ | (0.15) | | | | | | (3) | | | ||||||||
Middle East and Africa
|
| | | | 10 | | | | | | 10 | | | | | | — | | | | | | (3) | | | | | $ | 7.51 | | | | | $ | 7.31 | | | | | $ | 0.20 | | | | | | 3 | | | ||||||||
International
|
| | | | 50 | | | | | | 50 | | | | | | — | | | | | | 1 | | | | | $ | 7.25 | | | | | $ | 7.07 | | | | | $ | 0.18 | | | | | | 3 | | | ||||||||
United States
|
| | | | 37 | | | | | | 40 | | | | | | (3) | | | | | | (8) | | | | | $ | 4.30 | | | | | $ | 4.13 | | | | | $ | 0.17 | | | | | | 4 | | | ||||||||
Travel Commerce Platform
|
| | | | 87 | | | | | | 90 | | | | | | (3) | | | | | | (3) | | | | | $ | 6.00 | | | | | $ | 5.75 | | | | | $ | 0.25 | | | | | | 4 | | | ||||||||
|
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Commissions
|
| | | $ | 259 | | | | | $ | 258 | | | | | $ | 1 | | | | | | — | | | ||||
Technology costs
|
| | | | 76 | | | | | | 79 | | | | | | (3) | | | | | | (4) | | | ||||
Cost of revenue
|
| | | $ | 335 | | | | | $ | 337 | | | | | $ | (2) | | | | | | (1) | | | ||||
|
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Workforce
|
| | | $ | 72 | | | | | $ | 73 | | | | | $ | (1) | | | | | | (2) | | | ||||
Non-workforce
|
| | | | 28 | | | | | | 14 | | | | | | 14 | | | | | | 92 | | | ||||
Sub-total
|
| | | | 100 | | | | | | 87 | | | | | | 13 | | | | | | 14 | | | ||||
Non-core corporate costs
|
| | | | (2) | | | | | | 10 | | | | | | (12) | | | | | | (115) | | | ||||
SG&A
|
| | | $ | 98 | | | | | $ | 97 | | | | | $ | 1 | | | | | | 2 | | | ||||
|
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Depreciation on property and equipment
|
| | | $ | 39 | | | | | $ | 37 | | | | | $ | 2 | | | | | | 3 | | | ||||
Amortization of acquired intangible assets
|
| | | | 19 | | | | | | 20 | | | | | | (1) | | | | | | (1) | | | ||||
Total depreciation and amortization
|
| | | $ | 58 | | | | | $ | 57 | | | | | $ | 1 | | | | | | 2 | | | ||||
|
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Net revenue
|
| | | $ | 1,126 | | | | | $ | 1,123 | | | | | $ | 3 | | | | | | — | | | ||||
Costs and expenses
|
| | | | | ||||||||||||||||||||||||
Cost of revenue
|
| | | | 684 | | | | | | 690 | | | | | | (6) | | | | | | (1) | | | ||||
Selling, general and administrative
|
| | | | 226 | | | | | | 185 | | | | | | 41 | | | | | | 22 | | | ||||
Depreciation and amortization
|
| | | | 119 | | | | | | 113 | | | | | | 6 | | | | | | 6 | | | ||||
Total costs and expenses
|
| | | | 1,029 | | | | | | 988 | | | | | | 41 | | | | | | 4 | | | ||||
Operating income
|
| | | | 97 | | | | | | 135 | | | | | | (38) | | | | | | (29) | | | ||||
Interest expense, net
|
| | | | (78) | | | | | | (170) | | | | | | 92 | | | | | | 54 | | | ||||
Loss on early extinguishment of debt
|
| | | | — | | | | | | (14) | | | | | | 14 | | | | | | 100 | | | ||||
Gain on sale of shares of Orbitz Worldwide
|
| | | | 6 | | | | | | 52 | | | | | | (46) | | | | | | (88) | | | ||||
Income before income taxes and share of losses in equity method investments
|
| | | | 25 | | | | | | 3 | | | | | | 22 | | | | | | * | | | ||||
Provision for income taxes
|
| | | | (16) | | | | | | (22) | | | | | | 6 | | | | | | 30 | | | ||||
Share of losses in equity method investments
|
| | | | — | | | | | | (3) | | | | | | 3 | | | | | | 95 | | | ||||
Net income (loss)
|
| | | $ | 9 | | | | | $ | (22) | | | | | $ | 31 | | | | | | 140 | | | ||||
|
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Air
|
| | | $ | 832 | | | | | $ | 855 | | | | | $ | (23) | | | | | | (3) | | | ||||
Beyond Air
|
| | | | 232 | | | | | | 205 | | | | | | 27 | | | | | | 13 | | | ||||
Travel Commerce Platform
|
| | | | 1,064 | | | | | | 1,060 | | | | | | 4 | | | | | | — | | | ||||
Technology Services
|
| | | | 62 | | | | | | 63 | | | | | | (1) | | | | | | (1) | | | ||||
Net Revenue
|
| | | $ | 1,126 | | | | | $ | 1,123 | | | | | $ | 3 | | | | | | — | | | ||||
|
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
| | |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||
Travel Commerce Platform RevPas (in $)
|
| | | $ | 5.86 | | | | | $ | 5.68 | | | | | $ | 0.18 | | | | | | 3 | | |
Reported Segments (in millions)
|
| | | | 182 | | | | | | 187 | | | | | | (5) | | | | | | (3) | | |
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Asia Pacific
|
| | | $ | 233 | | | | | $ | 201 | | | | | $ | 32 | | | | | | 15 | | | ||||
Europe
|
| | | | 316 | | | | | | 333 | | | | | | (17) | | | | | | (5) | | | ||||
Latin America and Canada
|
| | | | 48 | | | | | | 45 | | | | | | 3 | | | | | | 6 | | | ||||
Middle East and Africa
|
| | | | 148 | | | | | | 147 | | | | | | 1 | | | | | | 1 | | | ||||
International
|
| | | | 745 | | | | | | 726 | | | | | | 19 | | | | | | 3 | | | ||||
United States
|
| | | | 319 | | | | | | 334 | | | | | | (15) | | | | | | (4) | | | ||||
Travel Commerce Platform
|
| | | $ | 1,064 | | | | | $ | 1,060 | | | | | $ | 4 | | | | | | — | | | ||||
|
| | |
Segments (in millions)
|
| |
RevPas (in $)
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Six Months Ended
June 30, |
| |
Change
|
| |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014
|
| | | | | | | |
%
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| |||||||||||||||||||||||||||||
Asia Pacific
|
| | | | 33 | | | | | | 30 | | | | | | 3 | | | | | | 12 | | | | | $ | 7.12 | | | | | $ | 6.89 | | | | | $ | 0.23 | | | | | | 3 | | | ||||||||
Europe
|
| | | | 43 | | | | | | 47 | | | | | | (4) | | | | | | (9) | | | | | $ | 7.33 | | | | | $ | 7.05 | | | | | $ | 0.28 | | | | | | 4 | | | ||||||||
Latin America and Canada
|
| | | | 8 | | | | | | 8 | | | | | | — | | | | | | 10 | | | | | $ | 5.67 | | | | | $ | 5.84 | | | | | $ | (0.17) | | | | | | (3) | | | ||||||||
Middle East and Africa
|
| | | | 20 | | | | | | 20 | | | | | | — | | | | | | (2) | | | | | $ | 7.45 | | | | | $ | 7.21 | | | | | $ | 0.24 | | | | | | 3 | | | ||||||||
International
|
| | | | 104 | | | | | | 105 | | | | | | (1) | | | | | | — | | | | | $ | 7.15 | | | | | $ | 6.95 | | | | | $ | 0.20 | | | | | | 3 | | | ||||||||
United States
|
| | | | 78 | | | | | | 82 | | | | | | (4) | | | | | | (6) | | | | | $ | 4.12 | | | | | $ | 4.07 | | | | | $ | 0.05 | | | | | | 1 | | | ||||||||
Travel Commerce Platform
|
| | | | 182 | | | | | | 187 | | | | | | (5) | | | | | | (3) | | | | | $ | 5.86 | | | | | $ | 5.68 | | | | | $ | 0.18 | | | | | | 3 | | | ||||||||
|
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Commissions
|
| | | $ | 529 | | | | | $ | 535 | | | | | $ | (6) | | | | | | (1) | | | ||||
Technology costs
|
| | | | 155 | | | | | | 155 | | | | | | — | | | | | | — | | | ||||
Cost of revenue
|
| | | $ | 684 | | | | | $ | 690 | | | | | $ | (6) | | | | | | (1) | | | ||||
|
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Workforce
|
| | | $ | 152 | | | | | $ | 148 | | | | | $ | 4 | | | | | | 3 | | | ||||
Non-workforce
|
| | | | 52 | | | | | | 25 | | | | | | 27 | | | | | | 105 | | | ||||
Sub-total
|
| | | | 204 | | | | | | 173 | | | | | | 31 | | | | | | 18 | | | ||||
Non-core corporate costs
|
| | | | 22 | | | | | | 12 | | | | | | 10 | | | | | | 83 | | | ||||
SG&A
|
| | | $ | 226 | | | | | $ | 185 | | | | | $ | 41 | | | | | | 22 | | | ||||
|
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Depreciation on property and equipment
|
| | | $ | 81 | | | | | $ | 74 | | | | | $ | 7 | | | | | | 10 | | | ||||
Amortization of acquired intangible assets
|
| | | | 38 | | | | | | 39 | | | | | | (1) | | | | | | (2) | | | ||||
Total depreciation and amortization
|
| | | $ | 119 | | | | | $ | 113 | | | | | $ | 6 | | | | | | 6 | | | ||||
|
(in $ millions)
|
| |
June 30,
2015 |
| |||
Cash and cash equivalents
|
| | | $ | 127 | | |
Cash held as collateral
|
| | | | 22 | | |
Revolver availability
|
| | | | 113 | | |
| | |
Asset (Liability)
|
| | |||||||||||||||||
(in $ millions)
|
| |
June 30,
2015 |
| |
December 31,
2014 |
| |
Change
|
| ||||||||||||
Accounts Receivable, net
|
| | | $ | 232 | | | | | $ | 184 | | | | | $ | 48 | | | |||
Accrued commissions and incentives
|
| | | | (272) | | | | | | (260) | | | | | | (12) | | | |||
Deferred revenue and prepaid incentives, net
|
| | | | (17) | | | | | | (15) | | | | | | (2) | | | |||
Trading Working Capital
|
| | | | (57) | | | | | | (91) | | | | | | 34 | | | |||
Cash and cash equivalents
|
| | | | 127 | | | | | | 139 | | | | | | (12) | | | |||
Accounts payable and employee related
|
| | | | (127) | | | | | | (132) | | | | | | 5 | | | |||
Accrued interest
|
| | | | (18) | | | | | | (18) | | | | | | — | | | |||
Current portion of long-term debt
|
| | | | (58) | | | | | | (56) | | | | | | (2) | | | |||
Taxes
|
| | | | 14 | | | | | | 17 | | | | | | (3) | | | |||
Other assets (liabilities), net
|
| | | | 7 | | | | | | (2) | | | | | | 9 | | | |||
Working Capital
|
| | | $ | (112) | | | | | $ | (143) | | | | | $ | 31 | | | |||
Consolidated Balance Sheets: | | | | | ||||||||||||||||||
Total current assets
|
| | | $ | 455 | | | | | $ | 412 | | | | | $ | 43 | | | |||
Total current liabilities
|
| | | | (567) | | | | | | (555) | | | | | | (12) | | | |||
Working Capital
|
| | | $ | (112) | | | | | $ | (143) | | | | | $ | 31 | | | |||
|
| | |
June 30,
2015 |
| |
December 31,
2014 |
| |
Change
|
| |||||||||
Accounts receivable, net (in $ millions)
|
| | | $ | 232 | | | | | $ | 184 | | | | | $ | 48 | | |
Accounts receivable, net – Days Sales Outstanding (“DSO”)
|
| | | | 38 | | | | | | 37 | | | | | | 1 | | |
| | |
Six Months Ended
June 30, |
| |
Change
|
| |||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| ||||||||||||
Cash provided by (used in): | | | | | ||||||||||||||||||
Operating activities
|
| | | $ | 92 | | | | | $ | 42 | | | | | $ | 50 | | | |||
Investing activities
|
| | | | (46) | | | | | | (20) | | | | | | (26) | | | |||
Financing activities
|
| | | | (57) | | | | | | (83) | | | | | | 26 | | | |||
Effect of exchange rate changes
|
| | | | (1) | | | | | | — | | | | | | (1) | | | |||
Net decrease in cash and cash equivalents
|
| | | $ | (12) | | | | | $ | (61) | | | | | $ | 49 | | | |||
|
| | |
Six Months Ended,
June 30 |
| |||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| ||||||||
Adjusted EBITDA
|
| | | $ | 274 | | | | | $ | 297 | | | ||
Interest payments
|
| | | | (73) | | | | | | (150) | | | ||
Tax payments
|
| | | | (13) | | | | | | (13) | | | ||
Customer loyalty payments
|
| | | | (42) | | | | | | (45) | | | ||
Changes in Trading Working Capital
|
| | | | (34) | | | | | | 14 | | | ||
Changes in accounts payable and employee related payables
|
| | | | (6) | | | | | | (32) | | | ||
Pensions liability contribution
|
| | | | (2) | | | | | | (3) | | | ||
Changes in other assets and liabilities
|
| | | | (3) | | | | | | (17) | | | ||
Other adjusting items(1)
|
| | | | (9) | | | | | | (9) | | | ||
Net cash provided by operating activities
|
| | | | 92 | | | | | | 42 | | | ||
Add: other adjusting items(1)
|
| | | | 9 | | | | | | 9 | | | ||
Less: capital expenditures on property and equipment additions
|
| | | | (52) | | | | | | (54) | | | ||
Less: repayment of capital lease obligations
|
| | | | (16) | | | | | | (15) | | | ||
Adjusted Free Cash Flow
|
| | | | 33 | | | | | | (18) | | | ||
Add: interest paid
|
| | | | 73 | | | | | | 150 | | | ||
Unlevered Adjusted Free Cash Flow
|
| | | $ | 106 | | | | | $ | 132 | | | ||
|
| | |
Six Months Ended
June 30, |
| |||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| ||||||||
Cash additions to software developed for internal use
|
| | | $ | 37 | | | | | $ | 41 | | | ||
Cash additions to computer equipment
|
| | | | 15 | | | | | | 13 | | | ||
Total
|
| | | $ | 52 | | | | | $ | 54 | | | ||
|
(in $ millions)
|
| |
Interest
rate |
| |
Maturity
|
| |
June 30,
2015 |
| |
December 31,
2014 |
| ||||||||
Secured debt | | | | | | ||||||||||||||||
Senior Secured Credit Agreement | | | | | | ||||||||||||||||
Term loans
|
| | | | | ||||||||||||||||
Dollar denominated(1)
|
| |
L+4.75%
|
| |
September 2021
|
| | | $ | 2,337 | | | | | $ | 2,347 | | | ||
Revolver borrowings
|
| | | | | ||||||||||||||||
Dollar denominated
|
| |
L+5.00%
|
| |
September 2019
|
| | | | — | | | | | | — | | | ||
Capital leases and other indebtedness
|
| | | | | | | | | | 122 | | | | | | 93 | | | ||
Total debt
|
| | | | | | | | | | 2,459 | | | | | | 2,440 | | | ||
Less: cash and cash equivalents
|
| | | | | | | | | | (127) | | | | | | (139) | | | ||
Less: cash held as collateral
|
| | | | | | | | | | (22) | | | | | | (26) | | | ||
Net Debt(2)
|
| | | | | | | | | $ | 2,310 | | | | | $ | 2,275 | | | ||
|
| | | | TRAVELPORT WORLDWIDE LIMITED | |
| Date: August 4, 2015 | | |
By:
/s/ Philip Emery
Philip Emery
Executive Vice President and Chief Financial Officer |
|
| Date: August 4, 2015 | | |
By:
/s/ Antonios Basoukeas
Antonios Basoukeas
Chief Accounting Officer |
|
|
Exhibit
No. |
| |
Description
|
|
| 3.1 | | | Amended and Restated Memorandum of Association of Travelport Worldwide Limited (Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by Travelport Worldwide Limited on September 30, 2014). | |
| 3.2 | | | Amended and Restated Bye-laws of Travelport Worldwide Limited (Incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed by Travelport Worldwide Limited on September 30, 2014). | |
| 31.1 | | | Certification of Chief Executive Officer Pursuant to Rules 13(a)-14(a) and 15(d)-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 31.2 | | | Certification of Chief Financial Officer Pursuant to Rules 13(a)-14(a) and 15(d)-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32 | | | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 101.INS | | | XBRL Instance Document | |
| 101.SCH | | | XBRL Taxonomy Extension Schema Document | |
| 101.CAL | | | XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.LAB | | | XBRL Taxonomy Extension Labels Linkbase Document | |
| 101.PRE | | | XBRL Taxonomy Extension Presentation Linkbase Document | |
| 101.DEF | | | XBRL Taxonomy Extension Definition Linkbase Document | |