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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 | | | |
| | | | 22 | | | |
| | | | 41 | | | |
| | | | 42 | | | |
PART II. OTHER INFORMATION
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| | | | 43 | | | |
| | | | 43 | | | |
| | | | 43 | | | |
| | | | 43 | | | |
| | | | 43 | | | |
| | | | 43 | | | |
| | | | 44 | | | |
| | | | 45 | | |
(in $ millions, except share data)
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Three Months
Ended September 30, 2015 |
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Three Months
Ended September 30, 2014 |
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Nine Months
Ended September 30, 2015 |
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Nine Months
Ended September 30, 2014 |
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Net revenue
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| | | $ | 560 | | | | | $ | 529 | | | | | $ | 1,686 | | | | | $ | 1,652 | | |
Costs and expenses | | | | | | ||||||||||||||||||||
Cost of revenue
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| | | | 336 | | | | | | 320 | | | | | | 1,020 | | | | | | 1,010 | | |
Selling, general and administrative
|
| | | | 114 | | | | | | 130 | | | | | | 340 | | | | | | 315 | | |
Depreciation and amortization
|
| | | | 56 | | | | | | 58 | | | | | | 175 | | | | | | 171 | | |
Total costs and expenses
|
| | | | 506 | | | | | | 508 | | | | | | 1,535 | | | | | | 1,496 | | |
Operating income
|
| | | | 54 | | | | | | 21 | | | | | | 151 | | | | | | 156 | | |
Interest expense, net
|
| | | | (40) | | | | | | (67) | | | | | | (118) | | | | | | (237) | | |
Loss on early extinguishment of debt
|
| | | | — | | | | | | (94) | | | | | | — | | | | | | (108) | | |
Gain on sale of shares of Orbitz Worldwide
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| | | | — | | | | | | 304 | | | | | | 6 | | | | | | 356 | | |
Income before income taxes and share of (losses) earnings in equity method investments
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| | | | 14 | | | | | | 164 | | | | | | 39 | | | | | | 167 | | |
Provision for income taxes
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| | | | (8) | | | | | | (11) | | | | | | (24) | | | | | | (33) | | |
Share of (losses) earnings in equity method investments
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| | | | (1) | | | | | | 2 | | | | | | (1) | | | | | | (1) | | |
Net income
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| | | | 5 | | | | | | 155 | | | | | | 14 | | | | | | 133 | | |
Net income attributable to non-controlling interest in subsidiaries
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| | | | (1) | | | | | | (1) | | | | | | (3) | | | | | | (4) | | |
Net income attributable to the Company
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| | | $ | 4 | | | | | $ | 154 | | | | | $ | 11 | | | | | $ | 129 | | |
Income per share – Basic: | | | | | | ||||||||||||||||||||
Income per share
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| | | $ | 0.03 | | | | | $ | 1.75 | | | | | $ | 0.09 | | | | | $ | 1.75 | | |
Weighted average common shares outstanding – Basic
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| | | | 122,495,392 | | | | | | 88,254,078 | | | | | | 122,062,715 | | | | | | 73,701,371 | | |
Income per share – Diluted: | | | | | | ||||||||||||||||||||
Income per share
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| | | $ | 0.03 | | | | | $ | 1.71 | | | | | $ | 0.09 | | | | | $ | 1.70 | | |
Weighted average common shares outstanding – Diluted
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| | | | 122,724,141 | | | | | | 90,464,651 | | | | | | 122,563,359 | | | | | | 76,073,381 | | |
Cash dividends declared per Common Share
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| | | $ | 0.075 | | | | | $ | — | | | | | $ | 0.225 | | | | | $ | — | | |
(in $ millions)
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Three Months
Ended September 30, 2015 |
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Three Months
Ended September 30, 2014 |
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Nine Months
Ended September 30, 2015 |
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Nine Months
Ended September 30, 2014 |
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Net income
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| | | $ | 5 | | | | | $ | 155 | | | | | $ | 14 | | | | | $ | 133 | | | ||||
Other comprehensive loss, net of tax: | | | | | | ||||||||||||||||||||||||
Currency translation adjustment, net of tax
|
| | | | (3) | | | | | | (7) | | | | | | (9) | | | | | | (5) | | | ||||
Changes in gain on available-for-sale securities, net of tax
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| | | | — | | | | | | 6 | | | | | | (6) | | | | | | 6 | | | ||||
Changes in loss on cash flow hedges, net of tax
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| | | | — | | | | | | — | | | | | | — | | | | | | 4 | | | ||||
Changes in loss on equity investment, net of tax
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| | | | — | | | | | | (3) | | | | | | — | | | | | | (7) | | | ||||
Other comprehensive loss, net of tax
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| | | | (3) | | | | | | (4) | | | | | | (15) | | | | | | (2) | | | ||||
Comprehensive income (loss)
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| | | | 2 | | | | | | 151 | | | | | | (1) | | | | | | 131 | | | ||||
Comprehensive income attributable to non-controlling interest in subsidiaries
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| | | | (1) | | | | | | (1) | | | | | | (3) | | | | | | (4) | | | ||||
Comprehensive income (loss) attributable to the Company
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| | | $ | 1 | | | | | $ | 150 | | | | | $ | (4) | | | | | $ | 127 | | | ||||
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(in $ millions, except share data)
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September 30,
2015 |
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December 31,
2014 |
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Assets | | | | ||||||||||||
Current assets: | | | | ||||||||||||
Cash and cash equivalents
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| | | $ | 101 | | | | | $ | 139 | | | ||
Accounts receivable (net of allowances for doubtful accounts of $14 and $14)
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| | | | 237 | | | | | | 184 | | | ||
Deferred income taxes
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| | | | 3 | | | | | | 5 | | | ||
Other current assets
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| | | | 116 | | | | | | 84 | | | ||
Total current assets
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| | | | 457 | | | | | | 412 | | | ||
Property and equipment, net
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| | | | 449 | | | | | | 414 | | | ||
Goodwill
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| | | | 1,055 | | | | | | 997 | | | ||
Trademarks and tradenames
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| | | | 314 | | | | | | 314 | | | ||
Other intangible assets, net
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| | | | 564 | | | | | | 619 | | | ||
Cash held as collateral
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| | | | — | | | | | | 26 | | | ||
Deferred income taxes
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| | | | 9 | | | | | | 9 | | | ||
Other non-current assets
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| | | | 90 | | | | | | 101 | | | ||
Total assets
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| | | $ | 2,938 | | | | | $ | 2,892 | | | ||
Liabilities and equity | | | | ||||||||||||
Current liabilities: | | | | ||||||||||||
Accounts payable
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| | | $ | 64 | | | | | $ | 73 | | | ||
Accrued expenses and other current liabilities
|
| | | | 463 | | | | | | 426 | | | ||
Current portion of long-term debt
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| | | | 67 | | | | | | 56 | | | ||
Total current liabilities
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| | | | 594 | | | | | | 555 | | | ||
Long-term debt
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| | | | 2,405 | | | | | | 2,384 | | | ||
Deferred income taxes
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| | | | 57 | | | | | | 54 | | | ||
Other non-current liabilities
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| | | | 241 | | | | | | 237 | | | ||
Total liabilities
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| | | | 3,297 | | | | | | 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 September 30, 2015 and December 31, 2014)
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| | | | — | | | | | | — | | | ||
Common shares ($0.0025 par value; 560,000,000 shares authorized; 124,262,703 shares and 122,505,599 shares issued; 122,500,140 shares and 121,411,360 shares outstanding as of September 30, 2015 and December 31, 2014, respectively)
|
| | | | — | | | | | | — | | | ||
Additional paid in capital
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| | | | 2,724 | | | | | | 2,715 | | | ||
Treasury shares, at cost (1,762,563 shares and 1,094,239 shares as of September 30, 2015 and December 31, 2014, respectively)
|
| | | | (28) | | | | | | — | | | ||
Accumulated deficit
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| | | | (2,887) | | | | | | (2,898) | | | ||
Accumulated other comprehensive loss
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| | | | (189) | | | | | | (174) | | | ||
Total shareholders’ equity (deficit)
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| | | | (380) | | | | | | (357) | | | ||
Equity attributable to non-controlling interest in subsidiaries
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| | | | 21 | | | | | | 19 | | | ||
Total equity (deficit)
|
| | | | (359) | | | | | | (338) | | | ||
Total liabilities and equity
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| | | $ | 2,938 | | | | | $ | 2,892 | | | ||
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(in $ millions)
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Nine Months
Ended September 30, 2015 |
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Nine Months
Ended September 30, 2014 |
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Operating activities | | | | ||||||||||||
Net income
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| | | $ | 14 | | | | | $ | 133 | | | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
| | | ||||||||||||
Depreciation and amortization
|
| | | | 175 | | | | | | 171 | | | ||
Amortization of customer loyalty payments
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| | | | 51 | | | | | | 56 | | | ||
Gain on sale of shares of Orbitz Worldwide
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| | | | (6) | | | | | | (356) | | | ||
Amortization of debt finance costs
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| | | | 5 | | | | | | 8 | | | ||
Accrual of repayment fee and amortization of debt discount
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| | | | 3 | | | | | | 7 | | | ||
Loss on early extinguishment of debt
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| | | | — | | | | | | 108 | | | ||
(Gain) loss on foreign exchange derivative instruments
|
| | | | (7) | | | | | | 10 | | | ||
Payment-in-kind interest
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| | | | — | | | | | | 17 | | | ||
Share of losses in equity method investments
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| | | | 1 | | | | | | 1 | | | ||
Equity-based compensation
|
| | | | 25 | | | | | | 30 | | | ||
Deferred income taxes
|
| | | | 4 | | | | | | 9 | | | ||
Customer loyalty payments
|
| | | | (56) | | | | | | (66) | | | ||
Pension liability contribution
|
| | | | (2) | | | | | | (5) | | | ||
Changes in assets and liabilities: | | | | ||||||||||||
Accounts receivable
|
| | | | (49) | | | | | | (51) | | | ||
Other current assets
|
| | | | (39) | | | | | | (1) | | | ||
Accounts payable, accrued expenses and other current liabilities
|
| | | | 32 | | | | | | (88) | | | ||
Other
|
| | | | 3 | | | | | | 6 | | | ||
Net cash provided by (used in) operating activities
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| | | $ | 154 | | | | | $ | (11) | | | ||
Investing activities | | | | ||||||||||||
Property and equipment additions
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| | | $ | (76) | | | | | $ | (83) | | | ||
Proceeds from sale of shares of Orbitz Worldwide
|
| | | | 6 | | | | | | 366 | | | ||
Business acquired, net of cash
|
| | | | (61) | | | | | | (10) | | | ||
Purchase of equity method investment
|
| | | | — | | | | | | (10) | | | ||
Net cash (used in) provided by investing activities
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| | | $ | (131) | | | | | $ | 263 | | | ||
|
(in $ millions)
|
| |
Nine Months
Ended September 30, 2015 |
| |
Nine Months
Ended September 30, 2014 |
| ||||||
Financing activities | | | | ||||||||||
Proceeds from issuance of common shares in initial public offering
|
| | | $ | — | | | | | $ | 445 | | |
Proceeds from term loans
|
| | | | — | | | | | | 2,345 | | |
Proceeds from bridge loans
|
| | | | — | | | | | | 425 | | |
Repayment of term loans under senior secured credit agreement
|
| | | | (18) | | | | | | (1,477) | | |
Repayment of bridge loans
|
| | | | — | | | | | | (425) | | |
Repayment of term loans under second lien credit agreement
|
| | | | — | | | | | | (863) | | |
Repurchase / repayment of senior notes and senior subordinated notes
|
| | | | — | | | | | | (588) | | |
Proceeds from revolver borrowings
|
| | | | 30 | | | | | | 75 | | |
Repayment of revolver borrowings
|
| | | | (30) | | | | | | (75) | | |
Repayment of capital lease obligations and other indebtedness
|
| | | | (26) | | | | | | (23) | | |
Release of cash provided as collateral
|
| | | | 26 | | | | | | 29 | | |
Payment related to early extinguishment of debt
|
| | | | — | | | | | | (46) | | |
Purchase of non-controlling interest in subsidiary
|
| | | | — | | | | | | (65) | | |
Debt finance costs
|
| | | | — | | | | | | (37) | | |
Dividend to shareholders
|
| | | | (28) | | | | | | (2) | | |
Tax withholding for equity awards (Note 1)
|
| | | | (1) | | | | | | (5) | | |
Treasury share purchase related to vesting of equity awards (Note 1)
|
| | | | (13) | | | | | | — | | |
Proceeds from settlement of derivative instruments
|
| | | | — | | | | | | 3 | | |
Other
|
| | | | — | | | | | | 4 | | |
Net cash used in financing activities
|
| | | $ | (60) | | | | | $ | (280) | | |
Effect of changes in exchange rate on cash and cash equivalents
|
| | | | (1) | | | | | | (1) | | |
Net decrease in cash and cash equivalents
|
| | | | (38) | | | | | | (29) | | |
Cash and cash equivalents at beginning of period
|
| | | | 139 | | | | | | 154 | | |
Cash and cash equivalents at end of period
|
| | | $ | 101 | | | | | $ | 125 | | |
Supplementary disclosures of cash flow information | | | | ||||||||||
Interest payments
|
| | | | 109 | | | | | | 263 | | |
Income tax payments, net
|
| | | | 18 | | | | | | 19 | | |
Non-cash exchange of debt for equity
|
| | | | — | | | | | | 571 | | |
Non-cash capital leases additions (Note 4)
|
| | | | 86 | | | | | | 14 | | |
Non-cash purchase of property and equipment
|
| | | | 34 | | | | | | — | | |
| | |
Common Shares
|
| |
Additional
Paid in Capital |
| |
Treasury Shares
|
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Loss |
| |
Non-
Controlling Interest in Subsidiaries |
| |
Total
Equity (Deficit) |
| ||||||||||||||||||||||||||||||||||||||||||
(in $ millions, except share data)
|
| |
Number
|
| |
Amount
|
| |
Number
|
| |
Amount
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2014
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| | | | 122,505,599 | | | | | $ | — | | | | | $ | 2,715 | | | | | | — | | | | | $ | — | | | | | $ | (2,898) | | | | | $ | (174) | | | | | $ | 19 | | | | | $ | (338) | | | |||||||||
Change in accounting policy for treasury shares (Note 1)
|
| | | | — | | | | | | — | | | | | | 17 | | | | | | 1,094,239 | | | | | | (17) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||||||||
Dividend to shareholders
|
| | | | — | | | | | | — | | | | | | (28) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | (29) | | | |||||||||
Equity-based compensation
|
| | | | 1,757,104 | | | | | | — | | | | | | 20 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20 | | | |||||||||
Treasury shares activity related to vesting of equity awards
|
| | | | — | | | | | | — | | | | | | — | | | | | | 668,324 | | | | | | (11) | | | | | | — | | | | | | — | | | | | | — | | | | | | (11) | | | |||||||||
Comprehensive income (loss), net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | | | | | (15) | | | | | | 3 | | | | | | (1) | | | |||||||||
Balance as of September 30, 2015
|
| | | | 124,262,703 | | | | | $ | — | | | | | $ | 2,724 | | | | | | 1,762,563 | | | | | $ | (28) | | | | | $ | (2,887) | | | | | $ | (189) | | | | | $ | 21 | | | | | $ | (359) | | | |||||||||
|
(in $ millions)
|
| |
September 30,
2015 |
| |
December 31,
2014 |
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Prepaid incentives
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| | | $ | 30 | | | | | $ | 13 | | | ||
Prepaid expenses
|
| | | | 29 | | | | | | 20 | | | ||
Sales and use tax receivables
|
| | | | 27 | | | | | | 28 | | | ||
Restricted cash
|
| | | | 14 | | | | | | 9 | | | ||
Derivative assets
|
| | | | 1 | | | | | | — | | | ||
Available-for-sale securities
|
| | | | — | | | | | | 6 | | | ||
Other
|
| | | | 15 | | | | | | 8 | | | ||
| | | | $ | 116 | | | | | $ | 84 | | | ||
|
| | |
September 30, 2015
|
| |
December 31, 2014
|
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(in $ millions)
|
| |
Cost
|
| |
Accumulated
depreciation |
| |
Net
|
| |
Cost
|
| |
Accumulated
depreciation |
| |
Net
|
| ||||||||||||||||||||||||
Capitalized software
|
| | | $ | 833 | | | | | $ | (604) | | | | | $ | 229 | | | | | $ | 772 | | | | | $ | (554) | | | | | $ | 218 | | | ||||||
Computer equipment
|
| | | | 297 | | | | | | (156) | | | | | | 141 | | | | | | 297 | | | | | | (175) | | | | | | 122 | | | ||||||
Building and leasehold improvements
|
| | | | 23 | | | | | | (8) | | | | | | 15 | | | | | | 24 | | | | | | (9) | | | | | | 15 | | | ||||||
Construction in progress
|
| | | | 64 | | | | | | — | | | | | | 64 | | | | | | 59 | | | | | | — | | | | | | 59 | | | ||||||
| | | | $ | 1,217 | | | | | $ | (768) | | | | | $ | 449 | | | | | $ | 1,152 | | | | | $ | (738) | | | | | $ | 414 | | | ||||||
|
(in $ millions)
|
| |
January 1,
2015 |
| |
Additions
|
| |
Retirements
|
| |
Foreign
Exchange |
| |
September 30,
2015 |
| ||||||||||||||||||||
Non-Amortizable Assets: | | | | | | | ||||||||||||||||||||||||||||||
Goodwill
|
| | | $ | 997 | | | | | $ | 58 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,055 | | | |||||
Trademarks and tradenames
|
| | | | 314 | | | | | | — | | | | | | — | | | | | | — | | | | | | 314 | | | |||||
Other Intangible Assets: | | | | | | | ||||||||||||||||||||||||||||||
Acquired intangible assets
|
| | | | 1,129 | | | | | | — | | | | | | (3) | | | | | | 1 | | | | | | 1,127 | | | |||||
Accumulated amortization
|
| | | | (687) | | | | | | (56) | | | | | | 3 | | | | | | (1) | | | | | | (741) | | | |||||
Acquired intangible assets, net
|
| | | | 442 | | | | | | (56) | | | | | | — | | | | | | — | | | | | | 386 | | | |||||
Customer loyalty payments
|
| | | | 334 | | | | | | 58 | | | | | | (75) | | | | | | (6) | | | | | | 311 | | | |||||
Accumulated amortization
|
| | | | (157) | | | | | | (51) | | | | | | 75 | | | | | | — | | | | | | (133) | | | |||||
Customer loyalty payments, net
|
| | | | 177 | | | | | | 7 | | | | | | — | | | | | | (6) | | | | | | 178 | | | |||||
Other intangible assets, net
|
| | | $ | 619 | | | | | $ | (49) | | | | | $ | — | | | | | $ | (6) | | | | | $ | 564 | | | |||||
|
(in $ millions)
|
| |
January 1,
2014 |
| |
Additions
|
| |
Retirements
|
| |
Foreign
Exchange |
| |
September 30,
2014 |
| ||||||||||||||||||||
Non-Amortizable Assets: | | | | | | | ||||||||||||||||||||||||||||||
Goodwill
|
| | | $ | 986 | | | | | $ | 14 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,000 | | | |||||
Trademarks and tradenames
|
| | | | 314 | | | | | | — | | | | | | — | | | | | | — | | | | | | 314 | | | |||||
Other Intangible Assets: | | | | | | | ||||||||||||||||||||||||||||||
Acquired intangible assets
|
| | | | 1,129 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,129 | | | |||||
Accumulated amortization
|
| | | | (610) | | | | | | (58) | | | | | | — | | | | | | — | | | | | | (668) | | | |||||
Acquired intangible assets, net
|
| | | | 519 | | | | | | (58) | | | | | | — | | | | | | — | | | | | | 461 | | | |||||
Customer loyalty payments
|
| | | | 306 | | | | | | 86 | | | | | | (52) | | | | | | (2) | | | | | | 338 | | | |||||
Accumulated amortization
|
| | | | (154) | | | | | | (56) | | | | | | 52 | | | | | | — | | | | | | (158) | | | |||||
Customer loyalty payments, net
|
| | | | 152 | | | | | | 30 | | | | | | — | | | | | | (2) | | | | | | 180 | | | |||||
Other intangible assets, net
|
| | | $ | 671 | | | | | $ | (28) | | | | | $ | — | | | | | $ | (2) | | | | | $ | 641 | | | |||||
|
(in $ millions)
|
| |
September 30,
2015 |
| |
December 31,
2014 |
| ||||||||
Accrued commissions and incentives
|
| | | $ | 280 | | | | | $ | 260 | | | ||
Accrued payroll and related
|
| | | | 68 | | | | | | 59 | | | ||
Deferred revenue
|
| | | | 36 | | | | | | 27 | | | ||
Accrued interest expense
|
| | | | 18 | | | | | | 18 | | | ||
Customer prepayments
|
| | | | 14 | | | | | | 9 | | | ||
Income tax payable
|
| | | | 17 | | | | | | 16 | | | ||
Derivative contracts
|
| | | | 9 | | | | | | 16 | | | ||
Pension and post-retirement benefit liabilities
|
| | | | 1 | | | | | | 2 | | | ||
Other
|
| | | | 20 | | | | | | 19 | | | ||
| | | | $ | 463 | | | | | $ | 426 | | | ||
|
(in $ millions)
|
| |
Interest
rate |
| |
Maturity
|
| |
September 30,
2015 |
| |
December 31,
2014 |
| ||||||||
Senior Secured Credit Agreement | | | | | | ||||||||||||||||
Term loans
|
| | | | | ||||||||||||||||
Dollar denominated(1)
|
| |
L+4.75%
|
| |
September 2021
|
| | | $ | 2,332 | | | | | $ | 2,347 | | | ||
Revolver borrowings
|
| | | | | ||||||||||||||||
Dollar denominated
|
| |
L+5.00%
|
| |
September 2019
|
| | | | — | | | | | | — | | | ||
Capital leases and other indebtedness
|
| | | | | | | | | | 140 | | | | | | 93 | | | ||
Total debt
|
| | | | | | | | | | 2,472 | | | | | | 2,440 | | | ||
Less: current portion
|
| | | | | | | | | | 67 | | | | | | 56 | | | ||
Long-term debt
|
| | | | | | | | | $ | 2,405 | | | | | $ | 2,384 | | | ||
|
| | | | | |
Fair Value Asset
|
| | | | |
Fair Value (Liability)
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
Balance Sheet
Location |
| |
September 30,
2015 |
| |
December 31,
2014 |
| |
Balance Sheet
Location |
| |
September 30,
2015 |
| |
December 31,
2014 |
| ||||||||||||||||
Foreign currency forward contracts
|
| | Other current assets |
| | | $ | 1 | | | | | $ | — | | | | Accrued expenses and other current liabilities |
| | | $ | (9) | | | | | $ | (16) | | | ||||
Foreign currency forward contracts
|
| | | | | | | — | | | | | | — | | | | Other non-current liabilities |
| | | | (1) | | | | | | — | | | ||||
| | | | | | | $ | 1 | | | | | $ | — | | | | | | | | $ | (10) | | | | | $ | (16) | | | ||||
|
(in $ millions)
|
| |
Nine Months Ended
September 30, 2015 |
| |
Nine Months Ended
September 30, 2014 |
| ||||||||
Net derivative (liability) asset opening balance
|
| | | $ | (16) | | | | | $ | 10 | | | ||
Total loss for the period included in net income
|
| | | | (15) | | | | | | (9) | | | ||
Total loss for the period accounted through other comprehensive loss
|
| | | | — | | | | | | (4) | | | ||
Payments on (proceeds from) settlement of foreign currency derivative contracts
|
| | | | 22 | | | | | | (6) | | | ||
Net derivative liability closing balance
|
| | | $ | (9) | | | | | $ | (9) | | | ||
|
| | |
Amount of Gain
Recognized in Other Comprehensive Loss |
| |
Statement of
Operations Location |
| |
Amount of Loss
Recorded in Net Income |
| ||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Three Months
Ended September 30, |
| |
Nine Months
Ended September 30, |
| | | | |
Three Months
Ended September 30, |
| |
Nine Months
Ended September 30, |
| ||||||||||||||||||||||||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
2015
|
| |
2014
|
| | | | |
2015
|
| |
2014
|
| |
2015
|
| |
2014
|
| ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
| | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 4 | | | | Interest expense, net | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | ||||||||
Derivatives not designated as
hedging instruments: |
| | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps
|
| | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Interest expense, net | | | | | — | | | | | | (1) | | | | | | — | | | | | | (9) | | | ||||||||
Foreign currency forward contracts
|
| | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Selling, general and administrative |
| | | | (10) | | | | | | (9) | | | | | | (15) | | | | | | (7) | | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (10) | | | | | $ | (10) | | | | | $ | (15) | | | | | $ | (16) | | | ||||||||
|
| | | | | |
September 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
|
| | | | 1 | | | | | | 1 | | | | | | — | | | | | | — | | |
Derivative liabilities
|
| |
Level 2
|
| | | | (10) | | | | | | (10) | | | | | | (16) | | | | | | (16) | | |
Total debt
|
| |
Level 2
|
| | | | (2,472) | | | | | | (2,489) | | | | | | (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 | | |
July 31, 2015
|
| | | $ | 0.075 | | | |
September 3, 2015
|
| |
September 17, 2015
|
| | | | 9 | | |
| | |
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
|
| | | | 133,501 | | | | | $ | 14.89 | | | ||
Vested(1) | | | | | (1,800,857) | | | | | $ | 19.81 | | | ||
Forfeited
|
| | | | (9,000) | | | | | $ | 16.00 | | | ||
Balance as of September 30, 2015
|
| | | | 1,520,066 | | | | | $ | 16.91 | | | ||
|
| | |
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
|
| | | | 121,117 | | | | | $ | 5.37 | | | ||
Forfeited
|
| | | | — | | | | | | — | | | ||
Balance as of September 30, 2015
|
| | | | 1,391,988 | | | | | $ | 6.61 | | | ||
|
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||
(in $ million, except share data)
|
| |
2015
|
| |
2014
|
| |
2015
|
| |
2014
|
| ||||||||||||||||
Numerator – Basic and Diluted EPS: | | | | | | ||||||||||||||||||||||||
Net income attributable to the Company
|
| | | $ | 4 | | | | | $ | 154 | | | | | $ | 11 | | | | | $ | 129 | | | ||||
Denominator – Basic EPS: | | | | | | ||||||||||||||||||||||||
Weighted average common shares outstanding
|
| | | | 122,495,392 | | | | | | 88,254,078 | | | | | | 122,062,715 | | | | | | 73,701,371 | | | ||||
Income per share – Basic
|
| | | $ | 0.03 | | | | | $ | 1.75 | | | | | $ | 0.09 | | | | | $ | 1.75 | | | ||||
Denominator – Diluted EPS: | | | | | | ||||||||||||||||||||||||
Number of shares used for Basic EPS
|
| | | | 122,495,392 | | | | | | 88,254,078 | | | | | | 122,062,715 | | | | | | 73,701,371 | | | ||||
Weighted average effect of dilutive securities | | | | | | ||||||||||||||||||||||||
RSUs
|
| | | | 161,744 | | | | | | 2,119,936 | | | | | | 447,081 | | | | | | 2,327,658 | | | ||||
Stock Options
|
| | | | 67,005 | | | | | | 90,637 | | | | | | 53,563 | | | | | | 44,352 | | | ||||
Weighted average common shares outstanding – Diluted
|
| | | | 122,724,141 | | | | | | 90,464,651 | | | | | | 122,563,359 | | | | | | 76,073,381 | | | ||||
Income per share – Diluted
|
| | | $ | 0.03 | | | | | $ | 1.71 | | | | | $ | 0.09 | | | | | $ | 1.70 | | | ||||
|
| | |
Three Months
Ended September 30, |
| |
Change
|
| |
Nine Months
Ended September 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||
(in $ millions, except per share data, Reported Segments and RevPas)
|
| |
2015
|
| |
2014
|
| | | | | | | |
%
|
| |
2015
|
| |
2014
|
| | | | | | | |
%
|
| ||||||||||||||||||
Net revenue
|
| | | $ | 560 | | | | | $ | 529 | | | | | | 31 | | | | | | 6 | | | | | $ | 1,686 | | | | | $ | 1,652 | | | | | | 34 | | | | | | 2 | | |
Operating income
|
| | | | 54 | | | | | | 21 | | | | | | 33 | | | | | | 155 | | | | | | 151 | | | | | | 156 | | | | | | (5) | | | | | | (4) | | |
Net income
|
| | | | 5 | | | | | | 155 | | | | | | (150) | | | | | | (97) | | | | | | 14 | | | | | | 133 | | | | | | (119) | | | | | | (89) | | |
Income per share – diluted (in $)
|
| | | | 0.03 | | | | | | 1.71 | | | | | | (1.68) | | | | | | (98) | | | | | | 0.09 | | | | | | 1.70 | | | | | | (1.61) | | | | | | (94) | | |
Adjusted EBITDA(1)
|
| | | | 131 | | | | | | 133 | | | | | | (2) | | | | | | (2) | | | | | | 405 | | | | | | 430 | | | | | | (25) | | | | | | (6) | | |
Adjusted Net Income (Loss)(2)
|
| | | | 30 | | | | | | (3) | | | | | | 33 | | | | | | * | | | | | | 95 | | | | | | (9) | | | | | | 104 | | | | | | * | | |
Adjusted Income (Loss) per Share – diluted(3) (in $)
|
| | | | 0.25 | | | | | | (0.03) | | | | | | 0.28 | | | | | | * | | | | | | 0.78 | | | | | | (0.12) | | | | | | 0.90 | | | | | | * | | |
Net cash provided by (used in) operating activities
|
| | | | 62 | | | | | | (53) | | | | | | 115 | | | | | | * | | | | | | 154 | | | | | | (11) | | | | | | 165 | | | | | | * | | |
Adjusted Free Cash Flow(4)
|
| | | | 31 | | | | | | (62) | | | | | | 93 | | | | | | * | | | | | | 64 | | | | | | (80) | | | | | | 144 | | | | | | * | | |
Reported Segments (in millions)
|
| | | | 84 | | | | | | 88 | | | | | | (4) | | | | | | (5) | | | | | | 266 | | | | | | 275 | | | | | | (9) | | | | | | (3) | | |
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.29 | | | | | $ | 5.67 | | | | | $ | 0.62 | | | | | | 11 | | | | | $ | 5.99 | | | | | $ | 5.68 | | | | | $ | 0.31 | | | | | | 6 | | |
| | |
Three Months
Ended September 30, |
| |
Nine Months
Ended September 30, |
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
2015
|
| |
2014
|
| ||||||||||||||||
Net income
|
| | | $ | 5 | | | | | $ | 155 | | | | | $ | 14 | | | | | $ | 133 | | | ||||
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Amortization of intangible assets(1)
|
| | | | 18 | | | | | | 19 | | | | | | 56 | | | | | | 58 | | | ||||
Loss on early extinguishment of debt
|
| | | | — | | | | | | 94 | | | | | | — | | | | | | 108 | | | ||||
Share of losses (earnings) in equity method investments
|
| | | | 1 | | | | | | (2) | | | | | | 1 | | | | | | 1 | | | ||||
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | (304) | | | | | | (6) | | | | | | (356) | | | ||||
Equity-based compensation and related taxes
|
| | | | 4 | | | | | | 24 | | | | | | 25 | | | | | | 33 | | | ||||
Corporate and restructuring costs(2)
|
| | | | 3 | | | | | | 4 | | | | | | 11 | | | | | | 10 | | | ||||
Other – non cash(3)
|
| | | | (1) | | | | | | 7 | | | | | | (8) | | | | | | 4 | | | ||||
Tax impact of adjustments
|
| | | | — | | | | | | — | | | | | | 2 | | | | | | — | | | ||||
Adjusted Net Income (Loss)
|
| | | | 30 | | | | | | (3) | | | | | | 95 | | | | | | (9) | | | ||||
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Depreciation and amortization of property and equipment
|
| | | | 38 | | | | | | 39 | | | | | | 119 | | | | | | 113 | | | ||||
Amortization of customer loyalty payments
|
| | | | 15 | | | | | | 19 | | | | | | 51 | | | | | | 56 | | | ||||
Interest expense, net
|
| | | | 40 | | | | | | 67 | | | | | | 118 | | | | | | 237 | | | ||||
Remaining provision for income taxes
|
| | | | 8 | | | | | | 11 | | | | | | 22 | | | | | | 33 | | | ||||
Adjusted EBITDA
|
| | | $ | 131 | | | | | $ | 133 | | | | | $ | 405 | | | | | $ | 430 | | | ||||
|
| | |
Nine Months Ended
September 30, |
| |||||||||||
(in percentages)
|
| |
2015
|
| |
2014
|
| ||||||||
Asia Pacific
|
| | | | 22% | | | | | | 19% | | | ||
Europe
|
| | | | 29 | | | | | | 31 | | | ||
Latin America and Canada
|
| | | | 5 | | | | | | 4 | | | ||
Middle East and Africa
|
| | | | 14 | | | | | | 14 | | | ||
International
|
| | | | 70 | | | | | | 68 | | | ||
United States
|
| | | | 30 | | | | | | 32 | | | ||
Travel Commerce Platform
|
| | | | 100% | | | | | | 100% | | | ||
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Net revenue
|
| | | $ | 560 | | | | | $ | 529 | | | | | $ | 31 | | | | | | 6 | | | ||||
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Cost of revenue
|
| | | | 336 | | | | | | 320 | | | | | | 16 | | | | | | 5 | | | ||||
Selling, general and administrative
|
| | | | 114 | | | | | | 130 | | | | | | (16) | | | | | | (12) | | | ||||
Depreciation and amortization
|
| | | | 56 | | | | | | 58 | | | | | | (2) | | | | | | (4) | | | ||||
Total costs and expenses
|
| | | | 506 | | | | | | 508 | | | | | | (2) | | | | | | — | | | ||||
Operating income
|
| | | | 54 | | | | | | 21 | | | | | | 33 | | | | | | 155 | | | ||||
Interest expense, net
|
| | | | (40) | | | | | | (67) | | | | | | 27 | | | | | | 41 | | | ||||
Loss on early extinguishment of debt
|
| | | | — | | | | | | (94) | | | | | | 94 | | | | | | 100 | | | ||||
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | 304 | | | | | | (304) | | | | | | (100) | | | ||||
Income before income taxes and share of (losses) earnings in equity method investments
|
| | | | 14 | | | | | | 164 | | | | | | (150) | | | | | | (91) | | | ||||
Provision for income taxes
|
| | | | (8) | | | | | | (11) | | | | | | 3 | | | | | | 22 | | | ||||
Share of (losses) earnings in equity method investments
|
| | | | (1) | | | | | | 2 | | | | | | (3) | | | | | | (118) | | | ||||
Net income
|
| | | $ | 5 | | | | | $ | 155 | | | | | $ | (150) | | | | | | (97) | | | ||||
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Air
|
| | | $ | 399 | | | | | $ | 390 | | | | | $ | 9 | | | | | | 2 | | | ||||
Beyond Air
|
| | | | 129 | | | | | | 111 | | | | | | 18 | | | | | | 17 | | | ||||
Travel Commerce Platform
|
| | | | 528 | | | | | | 501 | | | | | | 27 | | | | | | 5 | | | ||||
Technology Services
|
| | | | 32 | | | | | | 28 | | | | | | 4 | | | | | | 14 | | | ||||
Net Revenue
|
| | | $ | 560 | | | | | $ | 529 | | | | | $ | 31 | | | | | | 6 | | | ||||
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
| | |
2015
|
| |
2014
|
| | | | | | | |
%
|
| |||||||||
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.29 | | | | | $ | 5.67 | | | | | $ | 0.62 | | | | | | 11 | | |
Reported Segments (in millions)
|
| | | | 84 | | | | | | 88 | | | | | | (4) | | | | | | (5) | | |
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Asia Pacific
|
| | | $ | 117 | | | | | $ | 103 | | | | | $ | 14 | | | | | | 14 | | | ||||
Europe
|
| | | | 159 | | | | | | 143 | | | | | | 16 | | | | | | 11 | | | ||||
Latin America and Canada
|
| | | | 27 | | | | | | 23 | | | | | | 4 | | | | | | 21 | | | ||||
Middle East and Africa
|
| | | | 72 | | | | | | 69 | | | | | | 3 | | | | | | 3 | | | ||||
International
|
| | | | 375 | | | | | | 338 | | | | | | 37 | | | | | | 11 | | | ||||
United States
|
| | | | 153 | | | | | | 163 | | | | | | (10) | | | | | | (6) | | | ||||
Travel Commerce Platform
|
| | | $ | 528 | | | | | $ | 501 | | | | | $ | 27 | | | | | | 5 | | | ||||
|
| | |
Segments (in millions)
|
| |
RevPas (in $)
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Three Months Ended
September 30, |
| |
Change
|
| |
Three Months
Ended September 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014
|
| | | | | | | |
%
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| |||||||||||||||||||||||||||||
Asia Pacific
|
| | | | 16 | | | | | | 14 | | | | | | 2 | | | | | | 7 | | | | | $ | 7.32 | | | | | $ | 6.87 | | | | | $ | 0.45 | | | | | | 7 | | | ||||||||
Europe
|
| | | | 19 | | | | | | 20 | | | | | | (1) | | | | | | (2) | | | | | $ | 8.20 | | | | | $ | 7.20 | | | | | $ | 1.00 | | | | | | 14 | | | ||||||||
Latin America and Canada
|
| | | | 4 | | | | | | 4 | | | | | | — | | | | | | 10 | | | | | $ | 6.33 | | | | | $ | 5.71 | | | | | $ | 0.62 | | | | | | 11 | | | ||||||||
Middle East and Africa
|
| | | | 10 | | | | | | 10 | | | | | | — | | | | | | — | | | | | $ | 7.47 | | | | | $ | 7.27 | | | | | $ | 0.20 | | | | | | 3 | | | ||||||||
International
|
| | | | 49 | | | | | | 48 | | | | | | 1 | | | | | | 2 | | | | | $ | 7.61 | | | | | $ | 6.99 | | | | | $ | 0.62 | | | | | | 9 | | | ||||||||
United States
|
| | | | 35 | | | | | | 40 | | | | | | (5) | | | | | | (13) | | | | | $ | 4.41 | | | | | $ | 4.08 | | | | | $ | 0.33 | | | | | | 8 | | | ||||||||
Travel Commerce Platform
|
| | | | 84 | | | | | | 88 | | | | | | (4) | | | | | | (5) | | | | | $ | 6.29 | | | | | $ | 5.67 | | | | | $ | 0.62 | | | | | | 11 | | | ||||||||
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Commissions
|
| | | $ | 261 | | | | | $ | 249 | | | | | $ | 12 | | | | | | 5 | | | ||||
Technology costs
|
| | | | 75 | | | | | | 71 | | | | | | 4 | | | | | | 6 | | | ||||
Cost of revenue
|
| | | $ | 336 | | | | | $ | 320 | | | | | $ | 16 | | | | | | 5 | | | ||||
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Workforce
|
| | | $ | 78 | | | | | $ | 76 | | | | | $ | 2 | | | | | | 4 | | | ||||
Non-workforce
|
| | | | 30 | | | | | | 19 | | | | | | 11 | | | | | | 49 | | | ||||
Sub-total
|
| | | | 108 | | | | | | 95 | | | | | | 13 | | | | | | 13 | | | ||||
Non-core corporate costs
|
| | | | 6 | | | | | | 35 | | | | | | (29) | | | | | | (79) | | | ||||
SG&A | | | | $ | 114 | | | | | $ | 130 | | | | | $ | (16) | | | | | | (12) | | | ||||
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Depreciation on property and equipment
|
| | | $ | 38 | | | | | $ | 39 | | | | | $ | (1) | | | | | | (2) | | | ||||
Amortization of acquired intangible assets
|
| | | | 18 | | | | | | 19 | | | | | | (1) | | | | | | (6) | | | ||||
Total depreciation and amortization
|
| | | $ | 56 | | | | | $ | 58 | | | | | $ | (2) | | | | | | (4) | | | ||||
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Net revenue
|
| | | $ | 1,686 | | | | | $ | 1,652 | | | | | $ | 34 | | | | | | 2 | | | ||||
Costs and expenses | | | | | | ||||||||||||||||||||||||
Cost of revenue
|
| | | | 1,020 | | | | | | 1,010 | | | | | | 10 | | | | | | 1 | | | ||||
Selling, general and administrative
|
| | | | 340 | | | | | | 315 | | | | | | 25 | | | | | | 8 | | | ||||
Depreciation and amortization
|
| | | | 175 | | | | | | 171 | | | | | | 4 | | | | | | 3 | | | ||||
Total costs and expenses
|
| | | | 1,535 | | | | | | 1,496 | | | | | | 39 | | | | | | 3 | | | ||||
Operating income
|
| | | | 151 | | | | | | 156 | | | | | | (5) | | | | | | (4) | | | ||||
Interest expense, net
|
| | | | (118) | | | | | | (237) | | | | | | 119 | | | | | | 50 | | | ||||
Loss on early extinguishment of debt
|
| | | | — | | | | | | (108) | | | | | | 108 | | | | | | 100 | | | ||||
Gain on sale of shares of Orbitz Worldwide
|
| | | | 6 | | | | | | 356 | | | | | | (350) | | | | | | (98) | | | ||||
Income before income taxes and share of losses in equity method investments
|
| | | | 39 | | | | | | 167 | | | | | | (128) | | | | | | (77) | | | ||||
Provision for income taxes
|
| | | | (24) | | | | | | (33) | | | | | | 9 | | | | | | 27 | | | ||||
Share of losses in equity method investments
|
| | | | (1) | | | | | | (1) | | | | | | — | | | | | | — | | | ||||
Net income
|
| | | $ | 14 | | | | | $ | 133 | | | | | $ | (119) | | | | | | (89) | | | ||||
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Air
|
| | | $ | 1,231 | | | | | $ | 1,245 | | | | | $ | (14) | | | | | | (1) | | | ||||
Beyond Air
|
| | | | 361 | | | | | | 316 | | | | | | 45 | | | | | | 14 | | | ||||
Travel Commerce Platform
|
| | | | 1,592 | | | | | | 1,561 | | | | | | 31 | | | | | | 2 | | | ||||
Technology Services
|
| | | | 94 | | | | | | 91 | | | | | | 3 | | | | | | 4 | | | ||||
Net Revenue
|
| | | $ | 1,686 | | | | | $ | 1,652 | | | | | $ | 34 | | | | | | 2 | | | ||||
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
| | |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||
Travel Commerce Platform RevPas (in $)
|
| | | $ | 5.99 | | | | | $ | 5.68 | | | | | $ | 0.31 | | | | | | 6 | | |
Reported Segments (in millions)
|
| | | | 266 | | | | | | 275 | | | | | | (9) | | | | | | (3) | | |
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Asia Pacific
|
| | | $ | 350 | | | | | $ | 304 | | | | | $ | 46 | | | | | | 15 | | | ||||
Europe
|
| | | | 475 | | | | | | 476 | | | | | | (1) | | | | | | — | | | ||||
Latin America and Canada
|
| | | | 75 | | | | | | 68 | | | | | | 7 | | | | | | 11 | | | ||||
Middle East and Africa
|
| | | | 220 | | | | | | 216 | | | | | | 4 | | | | | | 2 | | | ||||
International
|
| | | | 1,120 | | | | | | 1,064 | | | | | | 56 | | | | | | 5 | | | ||||
United States
|
| | | | 472 | | | | | | 497 | | | | | | (25) | | | | | | (5) | | | ||||
Travel Commerce Platform
|
| | | $ | 1,592 | | | | | $ | 1,561 | | | | | $ | 31 | | | | | | 2 | | | ||||
|
| | |
Segments (in millions)
|
| |
RevPas (in $)
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Nine Months Ended
September 30, |
| |
Change
|
| |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014
|
| | | | | | | |
%
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| |||||||||||||||||||||||||||||
Asia Pacific
|
| | | | 49 | | | | | | 44 | | | | | | 5 | | | | | | 10 | | | | | $ | 7.18 | | | | | $ | 6.88 | | | | | $ | 0.30 | | | | | | 4 | | | ||||||||
Europe
|
| | | | 62 | | | | | | 67 | | | | | | (5) | | | | | | (7) | | | | | $ | 7.60 | | | | | $ | 7.09 | | | | | $ | 0.51 | | | | | | 7 | | | ||||||||
Latin America and Canada
|
| | | | 13 | | | | | | 12 | | | | | | 1 | | | | | | 10 | | | | | $ | 5.89 | | | | | $ | 5.80 | | | | | $ | 0.09 | | | | | | 2 | | | ||||||||
Middle East and Africa
|
| | | | 30 | | | | | | 30 | | | | | | — | | | | | | (1) | | | | | $ | 7.45 | | | | | $ | 7.23 | | | | | $ | 0.22 | | | | | | 3 | | | ||||||||
International
|
| | | | 154 | | | | | | 153 | | | | | | 1 | | | | | | — | | | | | $ | 7.30 | | | | | $ | 6.96 | | | | | $ | 0.34 | | | | | | 5 | | | ||||||||
United States
|
| | | | 112 | | | | | | 122 | | | | | | (10) | | | | | | (8) | | | | | $ | 4.21 | | | | | $ | 4.07 | | | | | $ | 0.14 | | | | | | 3 | | | ||||||||
Travel Commerce Platform
|
| | | | 266 | | | | | | 275 | | | | | | (9) | | | | | | (3) | | | | | $ | 5.99 | | | | | $ | 5.68 | | | | | $ | 0.31 | | | | | | 6 | | | ||||||||
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Commissions
|
| | | $ | 790 | | | | | $ | 784 | | | | | $ | 6 | | | | | | 1 | | | ||||
Technology costs
|
| | | | 230 | | | | | | 226 | | | | | | 4 | | | | | | 2 | | | ||||
Cost of revenue
|
| | | $ | 1,020 | | | | | $ | 1,010 | | | | | $ | 10 | | | | | | 1 | | | ||||
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Workforce
|
| | | $ | 230 | | | | | $ | 224 | | | | | $ | 6 | | | | | | 3 | | | ||||
Non-workforce
|
| | | | 82 | | | | | | 44 | | | | | | 38 | | | | | | 89 | | | ||||
Sub-total
|
| | | | 312 | | | | | | 268 | | | | | | 44 | | | | | | 17 | | | ||||
Non-core corporate costs
|
| | | | 28 | | | | | | 47 | | | | | | (19) | | | | | | (40) | | | ||||
SG&A | | | | $ | 340 | | | | | $ | 315 | | | | | $ | 25 | | | | | | 8 | | | ||||
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
| |
%
|
| ||||||||||||||||
Depreciation on property and equipment
|
| | | $ | 119 | | | | | $ | 113 | | | | | $ | 6 | | | | | | 6 | | | ||||
Amortization of acquired intangible assets
|
| | | | 56 | | | | | | 58 | | | | | | (2) | | | | | | (4) | | | ||||
Total depreciation and amortization
|
| | | $ | 175 | | | | | $ | 171 | | | | | $ | 4 | | | | | | 3 | | | ||||
|
(in $ millions)
|
| |
September 30,
2015 |
| |||
Cash and cash equivalents
|
| | | $ | 101 | | |
Revolver availability
|
| | | | 101 | | |
| | |
Asset (Liability)
|
| | | | | | | ||||||||||||
(in $ millions)
|
| |
September 30,
2015 |
| |
December 31,
2014 |
| |
Change
|
| ||||||||||||
Accounts Receivable, net
|
| | | $ | 237 | | | | | $ | 184 | | | | | $ | 53 | | | |||
Accrued commissions and incentives
|
| | | | (280) | | | | | | (260) | | | | | | (20) | | | |||
Deferred revenue and prepaid incentives, net
|
| | | | (6) | | | | | | (15) | | | | | | 9 | | | |||
Trading Working Capital
|
| | | | (49) | | | | | | (91) | | | | | | 42 | | | |||
Cash and cash equivalents
|
| | | | 101 | | | | | | 139 | | | | | | (38) | | | |||
Accounts payable and employee related
|
| | | | (133) | | | | | | (132) | | | | | | (1) | | | |||
Accrued interest
|
| | | | (18) | | | | | | (18) | | | | | | — | | | |||
Current portion of long-term debt
|
| | | | (67) | | | | | | (56) | | | | | | (11) | | | |||
Taxes
|
| | | | 13 | | | | | | 17 | | | | | | (4) | | | |||
Other assets (liabilities), net
|
| | | | 16 | | | | | | (2) | | | | | | 18 | | | |||
Working Capital
|
| | | $ | (137) | | | | | $ | (143) | | | | | $ | 6 | | | |||
Consolidated Balance Sheets: | | | | | | | | | | | | | | | | | | | | |||
Total current assets
|
| | | $ | 457 | | | | | $ | 412 | | | | | $ | 45 | | | |||
Total current liabilities
|
| | | | (594) | | | | | | (555) | | | | | | (39) | | | |||
Working Capital
|
| | | $ | (137) | | | | | $ | (143) | | | | | $ | 6 | | | |||
|
| | |
September 30,
2015 |
| |
December 31,
2014 |
| |
Change
|
| |||||||||
Accounts receivable, net (in $ millions)
|
| | | $ | 237 | | | | | $ | 184 | | | | | $ | 53 | | |
Accounts receivable, net – Days Sales Outstanding (“DSO”)
|
| | | | 38 | | | | | | 37 | | | | | | 1 | | |
| | |
Nine Months Ended
September 30, |
| |
Change
|
||||||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| |
$
|
|||||||||||
Cash provided by (used in): | | | | | | | | | | | | | | | | | | |||
Operating activities
|
| | | $ | 154 | | | | | $ | (11) | | | | | $ | 165 | |||
Investing activities
|
| | | | (131) | | | | | | 263 | | | | | | (394) | |||
Financing activities
|
| | | | (60) | | | | | | (280) | | | | | | 220 | |||
Effect of exchange rate changes
|
| | | | (1) | | | | | | (1) | | | | | | — | |||
Net decrease in cash and cash equivalents
|
| | | $ | (38) | | | | | $ | (29) | | | | | $ | (9) | |||
|
| | |
Nine Months Ended
September 30, |
| |||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| ||||||||
Adjusted EBITDA
|
| | | $ | 405 | | | | | $ | 430 | | | ||
Interest payments
|
| | | | (109) | | | | | | (263) | | | ||
Tax payments
|
| | | | (18) | | | | | | (19) | | | ||
Customer loyalty payments
|
| | | | (56) | | | | | | (66) | | | ||
Changes in Trading Working Capital
|
| | | | (36) | | | | | | (34) | | | ||
Changes in accounts payable and employee related payables
|
| | | | 1 | | | | | | (19) | | | ||
Pensions liability contribution
|
| | | | (2) | | | | | | (5) | | | ||
Changes in other assets and liabilities
|
| | | | (19) | | | | | | 2 | | | ||
Other adjusting items(1)
|
| | | | (12) | | | | | | (37) | | | ||
Net cash provided by (used in) operating activities
|
| | | | 154 | | | | | | (11) | | | ||
Add: other adjusting items(1)
|
| | | | 12 | | | | | | 37 | | | ||
Less: capital expenditures on property and equipment additions
|
| | | | (76) | | | | | | (83) | | | ||
Less: repayment of capital lease obligations and other indebtedness
|
| | | | (26) | | | | | | (23) | | | ||
Adjusted Free Cash Flow
|
| | | | 64 | | | | | | (80) | | | ||
Add: interest paid
|
| | | | 109 | | | | | | 263 | | | ||
Unlevered Adjusted Free Cash Flow
|
| | | $ | 173 | | | | | $ | 183 | | | ||
|
| | |
Nine Months Ended
September 30, |
| |||||||||||
(in $ millions)
|
| |
2015
|
| |
2014
|
| ||||||||
Cash additions to software developed for internal use
|
| | | $ | 57 | | | | | $ | 63 | | | ||
Cash additions to computer equipment
|
| | | | 19 | | | | | | 20 | | | ||
Total | | | | $ | 76 | | | | | $ | 83 | | | ||
|
(in $ millions)
|
| |
Interest
rate |
| |
Maturity
|
| |
September 30,
2015 |
| |
December 31,
2014 |
| ||||||||
Senior Secured Credit Agreement | | | | | | | | | | | | | | | | | | | | ||
Term loans
|
| | | | | | | | | | | | | | | | | | | ||
Dollar denominated(1)
|
| |
L+4.75%
|
| |
September 2021
|
| | | $ | 2,332 | | | | | $ | 2,347 | | | ||
Revolver borrowings
|
| | | | | ||||||||||||||||
Dollar denominated
|
| |
L+5.00%
|
| |
September 2019
|
| | | | — | | | | | | — | | | ||
Capital leases and other indebtedness
|
| | | | | | | | | | 140 | | | | | | 93 | | | ||
Total debt
|
| | | | | | | | | | 2,472 | | | | | | 2,440 | | | ||
Less: cash and cash equivalents
|
| | | | | | | | | | (101) | | | | | | (139) | | | ||
Less: cash held as collateral
|
| | | | | | | | | | — | | | | | | (26) | | | ||
Net Debt(2)
|
| | | | | | | | | $ | 2,371 | | | | | $ | 2,275 | | | ||
|
| | | | TRAVELPORT WORLDWIDE LIMITED | |
| Date: November 2, 2015 | | |
By:
/s/ Philip Emery
Philip Emery
Executive Vice President and Chief Financial Officer |
|
| Date: November 2, 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). | |
| 18.1 | | | Letter from Deloitte LLP Regarding Change in Accounting Principle. | |
| 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 | |