| | | | | S-ii | | | |
| | | | | S-iii | | | |
| | | | | S-iv | | | |
| | | | | S-iv | | | |
| | | | | S-v | | | |
| | | | | S-vi | | | |
| | | | | S-1 | | | |
| | | | | S-18 | | | |
| | | | | S-21 | | | |
| | | | | S-22 | | | |
| | | | | S-23 | | | |
| | | | | S-24 | | | |
| | | | | S-25 | | | |
| | | | | S-27 | | | |
| | | | | S-33 | | | |
| | | | | S-39 | | | |
| | | | | S-39 | | | |
| | | | | S-39 | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 3 | | | |
| | | | | 4 | | | |
| | | | | 5 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 12 | | | |
| | | | | 15 | | | |
| | | | | 16 | | | |
| | | | | 17 | | | |
| | | | | 18 | | | |
| | | | | 19 | | | |
| | | | | 19 | | |
(in $ millions, except per share data)
|
| |
Nine Months Ended
September 30, |
| |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||
|
2015
|
| |
2014
|
| |
2014
|
| |
2013
|
| |
2012
|
| ||||||||||||||||||||||
Net revenue
|
| | | $ | 1,686 | | | | | $ | 1,652 | | | | | $ | 2,148 | | | | | $ | 2,076 | | | | | $ | 2,002 | | | |||||
Costs and expenses: | | | | | | | ||||||||||||||||||||||||||||||
Cost of revenue
|
| | | | 1,020 | | | | | | 1,010 | | | | | | 1,324 | | | | | | 1,266 | | | | | | 1,191 | | | |||||
Selling, general and administrative
|
| | | | 340 | | | | | | 315 | | | | | | 430 | | | | | | 396 | | | | | | 446 | | | |||||
Depreciation and amortization
|
| | | | 175 | | | | | | 171 | | | | | | 233 | | | | | | 206 | | | | | | 227 | | | |||||
Total costs and expenses
|
| | | | 1,535 | | | | | | 1,496 | | | | | | 1,987 | | | | | | 1,868 | | | | | | 1,864 | | | |||||
Operating income
|
| | | | 151 | | | | | | 156 | | | | | | 161 | | | | | | 208 | | | | | | 138 | | | |||||
Interest expense, net
|
| | | | (118) | | | | | | (237) | | | | | | (278) | | | | | | (356) | | | | | | (346) | | | |||||
(Loss) gain on early extinguishment of debt
|
| | | | — | | | | | | (108) | | | | | | (108) | | | | | | (49) | | | | | | 6 | | | |||||
Gain on sale of shares of Orbitz Worldwide
|
| | | | 6 | | | | | | 356 | | | | | | 356 | | | | | | — | | | | | | — | | | |||||
Income (loss) from continuing operations before income taxes and share of (losses) earnings in equity method investments
|
| | | | 39 | | | | | | 167 | | | | | | 131 | | | | | | (197) | | | | | | (202) | | | |||||
Provision for income taxes
|
| | | | (24) | | | | | | (33) | | | | | | (39) | | | | | | (20) | | | | | | (23) | | | |||||
Share of (losses) earnings in equity method
investments |
| | | | (1) | | | | | | (1) | | | | | | (1) | | | | | | 10 | | | | | | (74) | | | |||||
Net income (loss) from continuing operations
|
| | | | 14 | | | | | | 133 | | | | | | 91 | | | | | | (207) | | | | | | (299) | | | |||||
Gain from disposal of discontinued operations, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | 4 | | | | | | 7 | | | |||||
Net income (loss)
|
| | | | 14 | | | | | | 133 | | | | | | 91 | | | | | | (203) | | | | | | (292) | | | |||||
Net (income) loss attributable to non-controlling interest
in subsidiaries |
| | | | (3) | | | | | | (4) | | | | | | (5) | | | | | | (3) | | | | | | — | | | |||||
Net income (loss) attributable to the Company
|
| | | $ | 11 | | | | | $ | 129 | | | | | $ | 86 | | | | | $ | (206) | | | | | $ | (292) | | | |||||
Income (loss) per common share–Basic: | | | | | | | ||||||||||||||||||||||||||||||
Income (loss) per share–continuing operations
|
| | | $ | 0.09 | | | | | $ | 1.75 | | | | | $ | 1.01 | | | | | $ | (4.62) | | | | | $ | (36.76) | | | |||||
Income per share–discontinued operations
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.10 | | | | | | 0.83 | | | |||||
Basic income (loss) per share
|
| | | | 0.09 | | | | | | 1.75 | | | | | | 1.01 | | | | | | (4.52) | | | | | | (35.93) | | | |||||
Weighted average common shares outstanding–Basic
|
| | | | 122,062,715 | | | | | | 73,701,371 | | | | | | 85,771,655 | | | | | | 45,522,506 | | | | | | 8,129,920 | | | |||||
Income (loss) per common share–Diluted: | | | | | | | ||||||||||||||||||||||||||||||
Income (loss) per share–continuing operations
|
| | | $ | 0.09 | | | | | $ | 1.70 | | | | | $ | 0.98 | | | | | $ | (4.62) | | | | | $ | (36.76) | | | |||||
Income per share–discontinued operations
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.10 | | | | | | 0.83 | | | |||||
Diluted income (loss) per share
|
| | | | 0.09 | | | | | | 1.70 | | | | | | 0.98 | | | | | | (4.52) | | | | | | (35.93) | | | |||||
Weighted average common shares
outstanding–Diluted |
| | | | 122,563,359 | | | | | | 76,073,381 | | | | | | 87,864,090 | | | | | | 45,522,506 | | | | | | 8,129,920 | | | |||||
|
(in $ millions, except percentages, segment data or otherwise
specified) |
| |
Nine Months Ended
September 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
|
2015
|
| |
2014
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||||
Adjusted Net Income (Loss)(1)
|
| | | $ | 95 | | | | | $ | (9) | | | | | $ | (11) | | | | | $ | (48) | | | | | $ | (80) | | |
Adjusted EBITDA(1)
|
| | | | 405 | | | | | | 430 | | | | | | 540 | | | | | | 517 | | | | | | 494 | | |
Adjusted Free Cash Flow(2)
|
| | | | 64 | | | | | | (80) | | | | | | (39) | | | | | | 20 | | | | | | 104 | | |
Unlevered Adjusted Free Cash Flow(2)
|
| | | | 173 | | | | | | 183 | | | | | | 255 | | | | | | 293 | | | | | | 336 | | |
Capital Expenditures
|
| | | | 102 | | | | | | 106 | | | | | | 144 | | | | | | 127 | | | | | | 108 | | |
Adjusted income (loss) per share-Diluted(3)
|
| | | | 0.78 | | | | | | (0.12) | | | | | | (0.12) | | | | | | (1.06) | | | | | | (9.84) | | |
Travel Commerce Platform revenue: | | | | | | | |||||||||||||||||||||||||
Air revenue
|
| | | | 1,231 | | | | | | 1,245 | | | | | $ | 1,607 | | | | | $ | 1,588 | | | | | $ | 1,548 | | |
Beyond Air revenue
|
| | | | 361 | | | | | | 316 | | | | | | 424 | | | | | | 371 | | | | | | 326 | | |
Total Travel Commerce Platform revenue
|
| | | $ | 1,592 | | | | | $ | 1,561 | | | | | $ | 2,031 | | | | | $ | 1,959 | | | | | $ | 1,874 | | |
% of net revenue
|
| | | | 94% | | | | | | 95% | | | | | | 95% | | | | | | 94% | | | | | | 94% | | |
% of Air segment revenue from away bookings
|
| | | | 65% | | | | | | 63% | | | | | | 62% | | | | | | 62% | | | | | | 60% | | |
Beyond Air revenue as % of net revenue
|
| | | | 21% | | | | | | 19% | | | | | | 20% | | | | | | 18% | | | | | | 16% | | |
Travel Commerce Platform revenue by region: | | | | | | | |||||||||||||||||||||||||
Asia Pacific
|
| | | $ | 350 | | | | | $ | 304 | | | | | $ | 400 | | | | | $ | 369 | | | | | $ | 336 | | |
Europe
|
| | | | 475 | | | | | | 476 | | | | | | 615 | | | | | | 596 | | | | | | 549 | | |
Latin America and Canada
|
| | | | 75 | | | | | | 68 | | | | | | 88 | | | | | | 86 | | | | | | 77 | | |
Middle East and Africa
|
| | | | 220 | | | | | | 216 | | | | | | 280 | | | | | | 277 | | | | | | 270 | | |
International
|
| | | | 1,120 | | | | | | 1,064 | | | | | | 1,383 | | | | | | 1,328 | | | | | | 1,232 | | |
% of Travel Commerce Platform revenue
|
| | | | 70% | | | | | | 68% | | | | | | 68% | | | | | | 68% | | | | | | 66% | | |
United States
|
| | | | 472 | | | | | | 497 | | | | | | 648 | | | | | | 631 | | | | | | 642 | | |
Total Travel Commerce Platform revenue
|
| | | $ | 1,592 | | | | | $ | 1,561 | | | | | $ | 2,031 | | | | | $ | 1,959 | | | | | $ | 1,874 | | |
Reported Segments (in millions)
|
| | | | 266 | | | | | | 275 | | | | | | 356 | | | | | | 350 | | | | | | 347 | | |
Travel Commerce Platform RevPas: | | | | | | | |||||||||||||||||||||||||
International RevPas (in dollars)
|
| | | $ | 7.30 | | | | | $ | 6.96 | | | | | $ | 6.98 | | | | | $ | 6.81 | | | | | $ | 6.55 | | |
United States RevPas (in dollars)
|
| | | $ | 4.21 | | | | | $ | 4.07 | | | | | $ | 4.10 | | | | | $ | 4.07 | | | | | $ | 4.03 | | |
Travel Commerce Platform RevPas (in dollars)
|
| | | $ | 5.99 | | | | | $ | 5.68 | | | | | $ | 5.70 | | | | | $ | 5.60 | | | | | $ | 5.40 | | |
Transaction value processed on the Travel Commerce
Platform |
| | | $ | 64,245 | | | | | $ | 69,362 | | | | | $ | 89,969 | | | | | $ | 87,666 | | | | | $ | 85,250 | | |
Airline tickets issued (in millions)
|
| | | | 90 | | | | | | 94 | | | | | | 122 | | | | | | 120 | | | | | | 116 | | |
Hotel room nights sold (in millions)
|
| | | | 49 | | | | | | 47 | | | | | | 63 | | | | | | 61 | | | | | | 58 | | |
Car rentals days sold (in millions)
|
| | | | 70 | | | | | | 64 | | | | | | 85 | | | | | | 76 | | | | | | 72 | | |
Hospitality segments per 100 airline tickets issued(a) (in millions)
|
| | | | 46 | | | | | | 42 | | | | | | 43 | | | | | | 41 | | | | | | 40 | | |
(in $ millions)
|
| |
As of
September 30, 2015 |
| |
As of December 31,
|
| ||||||||||||||||||||||
|
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 101 | | | | | $ | 139 | | | | | $ | 154 | | | | | $ | 110 | | | ||||
Total current assets (excludes cash and cash equivalents)
|
| | | | 356 | | | | | | 273 | | | | | | 312 | | | | | | 322 | | | ||||
Property and equipment, net
|
| | | | 449 | | | | | | 414 | | | | | | 428 | | | | | | 416 | | | ||||
Goodwill and other intangible assets, net
|
| | | | 1,933 | | | | | | 1,930 | | | | | | 1,971 | | | | | | 2,017 | | | ||||
All other non-current assets
|
| | | | 99 | | | | | | 136 | | | | | | 223 | | | | | | 291 | | | ||||
Total assets
|
| | | $ | 2,938 | | | | | $ | 2,892 | | | | | $ | 3,088 | | | | | $ | 3,156 | | | ||||
Total current liabilities
|
| | | $ | 594 | | | | | $ | 555 | | | | | $ | 681 | | | | | $ | 695 | | | ||||
Long-term debt
|
| | | | 2,405 | | | | | | 2,384 | | | | | | 3,528 | | | | | | 3,866 | | | ||||
All other non-current liabilities
|
| | | | 298 | | | | | | 291 | | | | | | 190 | | | | | | 281 | | | ||||
Total liabilities
|
| | | | 3,297 | | | | | | 3,230 | | | | | | 4,399 | | | | | | 4,842 | | | ||||
Total equity (deficit)
|
| | | | (359) | | | | | | (338) | | | | | | (1,311) | | | | | | (1,686) | | | ||||
Total liabilities and equity
|
| | | $ | 2,938 | | | | | $ | 2,892 | | | | | $ | 3,088 | | | | | $ | 3,156 | | | ||||
|
(in $ millions)
|
| |
Nine Months Ended
September 30, |
| |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||
|
2015
|
| |
2014
|
| |
2014
|
| |
2013
|
| |
2012
|
| ||||||||||||||||||||||
Net income (loss) from continuing operations
|
| | | $ | 14 | | | | | $ | 133 | | | | | $ | 91 | | | | | $ | (207) | | | | | $ | (299) | | | |||||
Adjustments: | | | | | | | ||||||||||||||||||||||||||||||
Amortization of intangible assets(a)
|
| | | | 56 | | | | | | 58 | | | | | | 77 | | | | | | 80 | | | | | | 82 | | | |||||
Loss (gain) on early extinguishment of debt
|
| | | | — | | | | | | 108 | | | | | | 108 | | | | | | 49 | | | | | | (6) | | | |||||
Share of losses (earnings) in equity method investments
|
| | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | (10) | | | | | | 74 | | | |||||
Loss of MSA with United Airlines(b)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (21) | | | |||||
Gain on sale of shares of Orbitz Worldwide
|
| | | | (6) | | | | | | (356) | | | | | | (356) | | | | | | — | | | | | | — | | | |||||
Equity-based compensation and related taxes
|
| | | | 25 | | | | | | 33 | | | | | | 44 | | | | | | 6 | | | | | | 2 | | | |||||
Corporate and restructuring costs(c)
|
| | | | 11 | | | | | | 10 | | | | | | 14 | | | | | | 7 | | | | | | 19 | | | |||||
Litigation and related costs(d)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 12 | | | | | | 53 | | | |||||
Other–non cash(e)
|
| | | | (8) | | | | | | 4 | | | | | | 12 | | | | | | 15 | | | | | | 16 | | | |||||
Tax impact of adjustments
|
| | | | 2 | | | | | | — | | | | | | (2) | | | | | | — | | | | | | — | | | |||||
Adjusted Net Income (Loss)
|
| | | | 95 | | | | | | (9) | | | | | | (11) | | | | | | (48) | | | | | | (80) | | | |||||
Adjustments: | | | | | | | ||||||||||||||||||||||||||||||
Depreciation and amortization of property and
equipment |
| | | | 119 | | | | | | 113 | | | | | | 156 | | | | | | 126 | | | | | | 145 | | | |||||
Amortization of customer loyalty payments(f)
|
| | | | 51 | | | | | | 56 | | | | | | 76 | | | | | | 63 | | | | | | 60 | | | |||||
Interest expense, net
|
| | | | 118 | | | | | | 237 | | | | | | 278 | | | | | | 356 | | | | | | 346 | | | |||||
Remaining provision for income taxes
|
| | | | 22 | | | | | | 33 | | | | | | 41 | | | | | | 20 | | | | | | 23 | | | |||||
Adjusted EBITDA
|
| | | $ | 405 | | | | | $ | 430 | | | | | $ | 540 | | | | | $ | 517 | | | | | $ | 494 | | | |||||
|
(in $ millions)
|
| |
For the Nine Months
Ended September 30, |
| |
For the Year Ended December 31,
|
| |||||||||||||||||||||||||||||
|
2015
|
| |
2014
|
| |
2014
|
| |
2013
|
| |
2012
|
| ||||||||||||||||||||||
Adjusted EBITDA
|
| | | $ | 405 | | | | | $ | 430 | | | | | $ | 540 | | | | | $ | 517 | | | | | $ | 494 | | | |||||
Interest payments
|
| | | | (109) | | | | | | (263) | | | | | | (294) | | | | | | (273) | | | | | | (232) | | | |||||
Tax payments
|
| | | | (18) | | | | | | (19) | | | | | | (26) | | | | | | (29) | | | | | | (16) | | | |||||
Customer loyalty payments
|
| | | | (56) | | | | | | (66) | | | | | | (93) | | | | | | (78) | | | | | | (47) | | | |||||
Changes in Trading Working Capital(a)
|
| | | | (36) | | | | | | (34) | | | | | | (13) | | | | | | (5) | | | | | | 31 | | | |||||
Changes in accounts payable and employee
related payables |
| | | | 1 | | | | | | (19) | | | | | | (33) | | | | | | 7 | | | | | | 19 | | | |||||
Pension liability contribution
|
| | | | (2) | | | | | | (5) | | | | | | (7) | | | | | | (3) | | | | | | (27) | | | |||||
Changes in other assets and liabilities
|
| | | | (19) | | | | | | 2 | | | | | | 31 | | | | | | 11 | | | | | | 7 | | | |||||
United MSA
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 23 | | | |||||
Other adjusting items(b)
|
| | | | (12) | | | | | | (37) | | | | | | (47) | | | | | | (47) | | | | | | (71) | | | |||||
Net cash provided by operating activities
|
| | | | 154 | | | | | | (11) | | | | | | 58 | | | | | | 100 | | | | | | 181 | | | |||||
Add: other adjusting items(b)
|
| | | | 12 | | | | | | 37 | | | | | | 47 | | | | | | 47 | | | | | | 71 | | | |||||
Less: United MSA cash
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (40) | | | |||||
Less: capital expenditures on property and
equipment additions |
| | | | (76) | | | | | | (83) | | | | | | (112) | | | | | | (107) | | | | | | (92) | | | |||||
Less: repayment of capital lease obligations and other indebtedness
|
| | | | (26) | | | | | | (23) | | | | | | (32) | | | | | | (20) | | | | | | (16) | | | |||||
Adjusted Free Cash Flow
|
| | | | 64 | | | | | | (80) | | | | | | (39) | | | | | | 20 | | | | | | 104 | | | |||||
Add: interest payments
|
| | | | 109 | | | | | | 263 | | | | | | 294 | | | | | | 273 | | | | | | 232 | | | |||||
Unlevered Adjusted Free Cash Flow
|
| | | $ | 173 | | | | | $ | 183 | | | | | $ | 255 | | | | | $ | 293 | | | | | $ | 336 | | | |||||
|
| | |
As of September 30, 2015
|
| |||||||||||
| | |
Actual
|
| |
As-Adjusted
|
| ||||||||
| | |
($ in millions, except share data)
|
| |||||||||||
Cash and cash equivalents
|
| | | $ | 101 | | | | | $ | 112 | | | ||
Secured Debt
|
| | | $ | 2,332 | | | | | $ | 2,332 | | | ||
Unsecured Debt
|
| | | $ | 26 | | | | | $ | 26 | | | ||
Capital Leases
|
| | | $ | 114 | | | | | $ | 114 | | | ||
Total long-term debt, including current portion
|
| | | $ | 2,472 | | | | | $ | 2,472 | | | ||
Shareholders’ equity (deficit): | | | | ||||||||||||
Common shares(1)
|
| | | $ | — | | | | | $ | — | | | ||
Additional paid-in capital
|
| | | $ | 2,724 | | | | | $ | 2,722 | | | ||
Treasury Shares
|
| | | $ | (28) | | | | | $ | (15) | | | ||
Accumulated deficit
|
| | | $ | (2,887) | | | | | $ | (2,887) | | | ||
Accumulated other comprehensive loss
|
| | | $ | (189) | | | | | $ | (189) | | | ||
Total shareholders’ equity (deficit)
|
| | | $ | (380) | | | | | $ | (369) | | | ||
Equity attributable to non-controlling interest in subsidiaries
|
| | | $ | 21 | | | | | $ | 21 | | | ||
Total capitalization
|
| | | $ | 2,113 | | | | | $ | 2,124 | | | ||
|
| | |
As of September 30, 2015
|
| |||||||||
| | |
Actual
|
| |
As-Adjusted
|
| ||||||
Authorized
|
| | | | 560,000,000 | | | | | | 560,000,000 | | |
Issued
|
| | | | 124,262,703 | | | | | | 124,262,703 | | |
Outstanding
|
| | | | 122,500,140 | | | | | | 123,350,140 | | |
| | |
High
|
| |
Low
|
| ||||||
2014 | | | | ||||||||||
Third Quarter (ending September 30, 2014)
|
| | | $ | 17.36 | | | | | $ | 15.71 | | |
Fourth Quarter (ending December 31, 2014)
|
| | | $ | 18.21 | | | | | $ | 11.63 | | |
2015 | | | | ||||||||||
First Quarter (ending March 31, 2015)
|
| | | $ | 18.03 | | | | | $ | 14.54 | | |
Second Quarter (ending June 30, 2015)
|
| | | $ | 17.00 | | | | | $ | 13.43 | | |
Third Quarter (ending September 30, 2015)
|
| | | $ | 15.34 | | | | | $ | 11.84 | | |
Fourth Quarter (through November 3, 2015)
|
| | | $ | 15.22 | | | | | $ | 12.70 | | |
Name and Address of Beneficial Owner(1)
|
| |
Common shares owned
before the offering |
| |
Common
shares to be sold in this offering |
| |
Common shares owned
after the offering |
| |||||||||||||||||||||
|
Number
|
| |
Percentage
|
| |
Number
|
| |
Number
|
| |
Percentage
|
| |||||||||||||||||
Angelo, Gordon Funds(2)
|
| | | | 15,236,979 | | | | | | 12.42% | | | | | | 2,828,607 | | | | | | 12,408,372 | | | | | | 10.05% | | |
Travelport Intermediate Limited(3)
|
| | | | 12,504,740 | | | | | | 10.20% | | | | | | 2,321,393 | | | | | | 10,183,347 | | | | | | 8.25% | | |
Name
|
| |
Number of Shares
|
| |||
Morgan Stanley & Co. LLC
|
| | | | 6,000,000 | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 3 | | | |
| | | | | 4 | | | |
| | | | | 5 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 12 | | | |
| | | | | 15 | | | |
| | | | | 16 | | | |
| | | | | 17 | | | |
| | | | | 18 | | | |
| | | | | 19 | | | |
| | | | | 19 | | |
| | |
Nine months
ended September 30, 2015 |
| |
Year ended December 31,
|
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2014
|
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2013
|
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2012
|
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2011
|
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2010
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Ratio of earnings to fixed charges and preferred dividends
|
| | | | 1.32x | | | | | | 1.44x | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |