☐ ☐ ☐ ☒
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934March 31,September 30, 2018¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 BermudaBermuda 98-0505105 (State or other jurisdiction of
incorporation or organization) (I.R.S. Employer
Identification Number)
Langley, Berkshire, SL3 8AG, United Kingdomx☒ No ¨and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x☒ No ¨ Large accelerated filer x ☒ Accelerated filer ¨ ☐ Non-accelerated filer ¨ ☐ Smaller reporting company ¨ ☐ Emerging growth company ¨ (Do not check if a smaller reporting company)☐ ¨¨☐ No xMay 2,October 30, 2018, there were 126,032,141126,432,714 shares of the Registrants’ common shares, par value $0.0025 per share, outstanding.
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PART I. FINANCIAL INFORMATION | | | | | |||||||
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PART II. OTHER INFORMATION | | | | | |||||||
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Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management’s good faith belief with respect to future events and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. The factors listed1
(unaudited)
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, | March 31, | |||||||
(in $ thousands, except share data) | 2018 | 2017 | ||||||
Net revenue | $ | 677,838 | $ | 650,763 | ||||
Costs and expenses | ||||||||
Cost of revenue | 426,397 | 386,837 | ||||||
Selling, general and administrative | 125,200 | 111,301 | ||||||
Depreciation and amortization | 48,577 | 52,909 | ||||||
Total costs and expenses | 600,174 | 551,047 | ||||||
Operating income | 77,664 | 99,716 | ||||||
Interest expense, net | (14,935 | ) | (30,275 | ) | ||||
Loss on early extinguishment of debt | (27,661 | ) | — | |||||
Other expense | (93 | ) | (846 | ) | ||||
Income before income taxes | 34,975 | 68,595 | ||||||
Provision for income taxes | (3,491 | ) | (12,732 | ) | ||||
Net income from continuing operations | 31,484 | 55,863 | ||||||
Income from discontinued operations, net of tax | 27,747 | — | ||||||
Net income | 59,231 | 55,863 | ||||||
Net (income) loss attributable to non-controlling interest in subsidiaries | (402 | ) | 243 | |||||
Net income attributable to the Company | $ | 58,829 | $ | 56,106 | ||||
Income per share – Basic: | ||||||||
Income per share – continuing operations | $ | 0.25 | $ | 0.45 | ||||
Income per share – discontinued operations | 0.22 | — | ||||||
Basic income per share | $ | 0.47 | $ | 0.45 | ||||
Weighted average common shares outstanding – Basic | 125,428,257 | 124,081,175 | ||||||
Income per share – Diluted: | ||||||||
Income per share – continuing operations | $ | 0.25 | $ | 0.45 | ||||
Income per share – discontinued operations | 0.22 | — | ||||||
Diluted income per share | $ | 0.47 | $ | 0.45 | ||||
Weighted average common shares outstanding – Diluted | 126,131,201 | 125,516,945 | ||||||
Cash dividends declared per common share | $ | 0.075 | $ | 0.075 |
(in $ thousands, except share data) | | | Three Months Ended September 30, 2018 | | | Three Months Ended September 30, 2017 | | | Nine Months Ended September 30, 2018 | | | Nine Months Ended September 30, 2017 | | ||||||||||||
Net revenue | | | | $ | 622,585 | | | | | $ | 610,842 | | | | | $ | 1,962,431 | | | | | $ | 1,873,712 | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 400,679 | | | | | | 388,027 | | | | | | 1,254,868 | | | | | | 1,144,572 | | |
Selling, general and administrative | | | | | 127,538 | | | | | | 110,916 | | | | | | 395,093 | | | | | | 336,272 | | |
Depreciation and amortization | | | | | 50,253 | | | | | | 50,314 | | | | | | 148,398 | | | | | | 156,871 | | |
Total costs and expenses | | | | | 578,470 | | | | | | 549,257 | | | | | | 1,798,359 | | | | | | 1,637,715 | | |
Operating income | | | | | 44,115 | | | | | | 61,585 | | | | | | 164,072 | | | | | | 235,997 | | |
Interest expense, net | | | | | (27,772) | | | | | | (28,793) | | | | | | (66,312) | | | | | | (92,011) | | |
Loss on early extinguishment of debt | | | | | (38) | | | | | | (4,682) | | | | | | (27,699) | | | | | | (4,682) | | |
Gain on sale of a subsidiary | | | | | — | | | | | | — | | | | | | — | | | | | | 1,217 | | |
Other expense | | | | | (266) | | | | | | (846) | | | | | | (730) | | | | | | (2,538) | | |
Income before income taxes | | | | | 16,039 | | | | | | 27,264 | | | | | | 69,331 | | | | | | 137,983 | | |
Provision for income taxes | | | | | (10,169) | | | | | | (22,583) | | | | | | (24,972) | | | | | | (43,073) | | |
Net income from continuing operations | | | | | 5,870 | | | | | | 4,681 | | | | | | 44,359 | | | | | | 94,910 | | |
Income from discontinued operations, net of tax | | | | | — | | | | | | — | | | | | | 27,747 | | | | | | — | | |
Net income | | | | | 5,870 | | | | | | 4,681 | | | | | | 72,106 | | | | | | 94,910 | | |
Net (income) loss attributable to non-controlling interest in subsidiaries | | | | | (762) | | | | | | 169 | | | | | | (2,025) | | | | | | 973 | | |
Net income attributable to the Company | | | | $ | 5,108 | | | | | $ | 4,850 | | | | | $ | 70,081 | | | | | $ | 95,883 | | |
Income per share – Basic: | | | | | | | | | | | | | | | | | | | | | | | | | |
Income per share – continuing operations | | | | $ | 0.04 | | | | | $ | 0.04 | | | | | $ | 0.34 | | | | | $ | 0.77 | | |
Income per share – discontinued operations | | | | | — | | | | | | — | | | | | | 0.22 | | | | | | — | | |
Basic income per share | | | | $ | 0.04 | | | | | $ | 0.04 | | | | | $ | 0.56 | | | | | $ | 0.77 | | |
Weighted average common shares outstanding – Basic | | | | | 126,246,210 | | | | | | 124,469,069 | | | | | | 125,908,707 | | | | | | 124,303,716 | | |
Income per share – Diluted: | | | | | | | | | | | | | | | | | | | | | | | | | |
Income per share – continuing operations | | | | $ | 0.04 | | | | | $ | 0.04 | | | | | $ | 0.33 | | | | | $ | 0.76 | | |
Income per share – discontinued operations | | | | | — | | | | | | — | | | | | | 0.22 | | | | | | — | | |
Diluted income per share | | | | $ | 0.04 | | | | | $ | 0.04 | | | | | $ | 0.55 | | | | | $ | 0.76 | | |
Weighted average common shares outstanding – Diluted | | | | | 128,389,385 | | | | | | 126,188,372 | | | | | | 127,854,478 | | | | | | 125,827,540 | | |
Cash dividends declared per common share | | | | $ | 0.075 | | | | | $ | 0.075 | | | | | $ | 0.225 | | | | | $ | 0.225 | | |
(unaudited)
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, | March 31, | |||||||
(in $ thousands) | 2018 | 2017 | ||||||
Net income | $ | 59,231 | $ | 55,863 | ||||
Other comprehensive income, net of tax | ||||||||
Currency translation adjustment, net of tax | 4,270 | 4,337 | ||||||
Amortization of actuarial loss to net income, net of tax | 2,473 | 2,599 | ||||||
Other comprehensive income, net of tax | 6,743 | 6,936 | ||||||
Comprehensive income | 65,974 | 62,799 | ||||||
Comprehensive (income) loss attributable to non-controlling interest in subsidiaries | (402 | ) | 243 | |||||
Comprehensive income attributable to the Company | $ | 65,572 | $ | 63,042 |
(in $ thousands) | | | Three Months Ended September 30, 2018 | | | Three Months Ended September 30, 2017 | | | Nine Months Ended September 30, 2018 | | | Nine Months Ended September 30, 2017 | | ||||||||||||
Net income | | | | $ | 5,870 | | | | | $ | 4,681 | | | | | $ | 72,106 | | | | | $ | 94,910 | | |
Other comprehensive income (loss), net of tax | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency translation adjustment, net of tax | | | | | (1,937) | | | | | | 4,234 | | | | | | (8,522) | | | | | | 20,533 | | |
Amortization of actuarial loss to net income, net of tax | | | | | 2,524 | | | | | | 2,856 | | | | | | 7,577 | | | | | | 8,060 | | |
Other comprehensive income (loss), net of tax | | | | | 587 | | | | | | 7,090 | | | | | | (945) | | | | | | 28,593 | | |
Comprehensive income | | | | | 6,457 | | | | | | 11,771 | | | | | | 71,161 | | | | | | 123,503 | | |
Comprehensive (income) loss attributable to non-controlling interest in subsidiaries | | | | | (762) | | | | | | 169 | | | | | | (2,025) | | | | | | 973 | | |
Comprehensive income attributable to the Company | | | | $ | 5,695 | | | | | $ | 11,940 | | | | | $ | 69,136 | | | | | $ | 124,476 | | |
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(unaudited)
March 31, | December 31, | |||||||
(in $ thousands, except share data) | 2018 | 2017 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 127,165 | $ | 122,039 | ||||
Accounts receivable (net of allowances for doubtful accounts of $9,566 and $10,245, respectively) | 270,663 | 206,524 | ||||||
Other current assets | 142,526 | 109,724 | ||||||
Total current assets | 540,354 | 438,287 | ||||||
Property and equipment, net | 435,354 | 431,741 | ||||||
Goodwill | 1,090,515 | 1,089,590 | ||||||
Trademarks and tradenames | 313,097 | 313,097 | ||||||
Other intangible assets, net | 509,700 | 496,180 | ||||||
Deferred income taxes | 22,864 | 12,796 | ||||||
Other non-current assets | 77,358 | 76,808 | ||||||
Total assets | $ | 2,989,242 | $ | 2,858,499 | ||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 80,147 | $ | 73,278 | ||||
Accrued expenses and other current liabilities | 576,770 | 509,068 | ||||||
Current portion of long-term debt | 54,089 | 64,291 | ||||||
Total current liabilities | 711,006 | 646,637 | ||||||
Long-term debt | 2,169,035 | 2,165,722 | ||||||
Deferred income taxes | 35,307 | 34,899 | ||||||
Other non-current liabilities | 200,890 | 203,562 | ||||||
Total liabilities | 3,116,238 | 3,050,820 | ||||||
Commitments and contingencies (Note 13) | ||||||||
Shareholders’ equity (deficit): | ||||||||
Preference shares ($0.0025 par value; 225,000,000 shares authorized; no shares issued and outstanding as of March 31, 2018 and December 31, 2017) | — | — | ||||||
Common shares ($0.0025 par value; 560,000,000 shares authorized; 127,260,153 shares and 126,967,010 shares issued; 125,630,319 shares and 125,346,613 shares outstanding as of March 31, 2018 and December 31, 2017, respectively) | 318 | 317 | ||||||
Additional paid in capital | 2,695,766 | 2,700,133 | ||||||
Treasury shares, at cost 1,629,834 shares and 1,620,397 shares as of March 31, 2018 and December 31, 2017, respectively) | (24,867 | ) | (24,755 | ) | ||||
Accumulated deficit | (2,662,560 | ) | (2,722,375 | ) | ||||
Accumulated other comprehensive loss | (148,878 | ) | (155,621 | ) | ||||
Total shareholders’ equity (deficit) | (140,221 | ) | (202,301 | ) | ||||
Equity attributable to non-controlling interest in subsidiaries | 13,225 | 9,980 | ||||||
Total equity (deficit) | (126,996 | ) | (192,321 | ) | ||||
Total liabilities and equity | $ | 2,989,242 | $ | 2,858,499 |
(in $ thousands, except share data) | | | September 30, 2018 | | | December 31, 2017 | | ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 200,333 | | | | | $ | 122,039 | | |
Accounts receivable (net of allowances for doubtful accounts of $9,753 and $10,245, respectively) | | | | | 248,635 | | | | | | 206,524 | | |
Other current assets | | | | | 125,612 | | | | | | 109,724 | | |
Total current assets | | | | | 574,580 | | | | | | 438,287 | | |
Property and equipment, net | | | | | 495,506 | | | | | | 431,741 | | |
Goodwill | | | | | 1,085,341 | | | | | | 1,089,590 | | |
Trademarks and tradenames | | | | | 313,097 | | | | | | 313,097 | | |
Other intangible assets, net | | | | | 444,602 | | | | | | 496,180 | | |
Deferred income taxes | | | | | 22,359 | | | | | | 12,796 | | |
Other non-current assets | | | | | 72,525 | | | | | | 76,808 | | |
Total assets | | | | $ | 3,008,010 | | | | | $ | 2,858,499 | | |
Liabilities and equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 72,094 | | | | | $ | 73,278 | | |
Accrued expenses and other current liabilities | | | | | 574,260 | | | | | | 509,068 | | |
Current portion of long-term debt | | | | | 58,377 | | | | | | 64,291 | | |
Total current liabilities | | | | | 704,731 | | | | | | 646,637 | | |
Long-term debt | | | | | 2,206,171 | | | | | | 2,165,722 | | |
Deferred income taxes | | | | | 37,881 | | | | | | 34,899 | | |
Other non-current liabilities | | | | | 191,273 | | | | | | 203,562 | | |
Total liabilities | | | | | 3,140,056 | | | | | | 3,050,820 | | |
Commitments and contingencies (Note 13) | | | | | | | | | | | | | |
Shareholders’ equity (deficit): | | | | | | | | | | | | | |
Preference shares ($0.0025 par value; 225,000,000 shares authorized; no shares issued and outstanding as of September 30, 2018 and December 31, 2017) | | | | | — | | | | | | — | | |
Common shares ($0.0025 par value; 560,000,000 shares authorized; 128,047,376 shares and 126,967,010 shares issued; 126,306,329 shares and 125,346,613 shares outstanding as of September 30, 2018 and December 31, 2017, respectively) | | | | | 320 | | | | | | 317 | | |
Additional paid in capital | | | | | 2,685,806 | | | | | | 2,700,133 | | |
Treasury shares, at cost (1,741,047 shares and 1,620,397 shares as of September 30, 2018 and December 31, 2017, respectively) | | | | | (26,832) | | | | | | (24,755) | | |
Accumulated deficit | | | | | (2,651,308) | | | | | | (2,722,375) | | |
Accumulated other comprehensive loss | | | | | (156,566) | | | | | | (155,621) | | |
Total shareholders’ equity (deficit) | | | | | (148,580) | | | | | | (202,301) | | |
Equity attributable to non-controlling interest in subsidiaries | | | | | 16,534 | | | | | | 9,980 | | |
Total equity (deficit) | | | | | (132,046) | | | | | | (192,321) | | |
Total liabilities and equity | | | | $ | 3,008,010 | | | | | $ | 2,858,499 | | |
|
(unaudited)
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, | March 31, | |||||||
(in $ thousands) | 2018 | 2017 | ||||||
Operating activities | ||||||||
Net income | $ | 59,231 | $ | 55,863 | ||||
Income from discontinued operations, net of tax | (27,747 | ) | — | |||||
Net income from continuing operations | 31,484 | 55,863 | ||||||
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 48,577 | 52,909 | ||||||
Amortization of customer loyalty payments | 22,343 | 18,795 | ||||||
Impairment of long-lived assets | 491 | 685 | ||||||
Amortization of debt finance costs and debt discount | 1,890 | 2,673 | ||||||
Loss on early extinguishment of debt | 27,661 | — | ||||||
Unrealized loss (gain) on foreign exchange derivative instruments | 242 | (7,701 | ) | |||||
Unrealized gain on interest rate derivative instruments | (10,430 | ) | (226 | ) | ||||
Equity-based compensation | 5,056 | 8,006 | ||||||
Deferred income taxes | (9,836 | ) | 152 | |||||
Customer loyalty payments | (27,366 | ) | (16,755 | ) | ||||
Pension liability contribution | (338 | ) | (595 | ) | ||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (62,768 | ) | (49,198 | ) | ||||
Other current assets | (8,057 | ) | (4,075 | ) | ||||
Accounts payable, accrued expenses and other current liabilities | 53,750 | 37,449 | ||||||
Other | 10,398 | (2,960 | ) | |||||
Net cash provided by operating activities of continuing operations | $ | 83,097 | $ | 95,022 | ||||
Investing activities | ||||||||
Property and equipment additions | $ | (36,663 | ) | $ | (23,609 | ) | ||
Net cash used in investing activities | $ | (36,663 | ) | $ | (23,609 | ) |
(in $ thousands) | | | Nine Months Ended September 30, 2018 | | | Nine Months Ended September 30, 2017 | | ||||||
Operating activities | | | | | | | | | | | | | |
Net income | | | | $ | 72,106 | | | | | $ | 94,910 | | |
Income from discontinued operations, net of tax | | | | | (27,747) | | | | | | — | | |
Net income from continuing operations | | | | | 44,359 | | | | | | 94,910 | | |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 148,398 | | | | | | 156,871 | | |
Amortization of customer loyalty payments | | | | | 64,553 | | | | | | 57,348 | | |
Impairment of long-lived assets | | | | | 14,912 | | | | | | 685 | | |
Amortization of debt finance costs and debt discount | | | | | 3,613 | | | | | | 7,791 | | |
Gain on sale of a subsidiary | | | | | — | | | | | | (1,217) | | |
Loss on early extinguishment of debt | | | | | 27,699 | | | | | | 4,682 | | |
Unrealized loss (gain) on foreign exchange derivative instruments | | | | | 23,637 | | | | | | (27,256) | | |
Unrealized (gain) loss on interest rate derivative instruments | | | | | (11,651) | | | | | | 1,121 | | |
Equity-based compensation | | | | | 11,845 | | | | | | 24,445 | | |
Deferred income taxes | | | | | (7,129) | | | | | | (304) | | |
Customer loyalty payments | | | | | (73,349) | | | | | | (54,592) | | |
Pension liability contribution | | | | | (1,049) | | | | | | (1,541) | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable, net | | | | | (41,966) | | | | | | (39,209) | | |
Other current assets | | | | | (12,933) | | | | | | (7,493) | | |
Accounts payable, accrued expenses and other current liabilities | | | | | 84,249 | | | | | | 61,504 | | |
Other | | | | | 10,247 | | | | | | (3,403) | | |
Net cash provided by operating activities | | | | $ | 285,435 | | | | | $ | 274,342 | | |
Investing activities | | | | | | | | | | | | | |
Property and equipment additions | | | | $ | (109,236) | | | | | $ | (79,192) | | |
Sale of subsidiary, net of cash disposed | | | | | — | | | | | | (3,433) | | |
Net cash used in investing activities | | | | $ | (109,236) | | | | | $ | (82,625) | | |
|
(unaudited)
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, | March 31, | |||||||
(in $ thousands) | 2018 | 2017 | ||||||
Financing activities | ||||||||
Proceeds from term loans | $ | 1,400,000 | $ | — | ||||
Proceeds from issuance of senior secured notes | 745,000 | — | ||||||
Repayment of term loans | (2,153,750 | ) | (5,938 | ) | ||||
Repayment of capital lease obligations and other indebtedness | (8,000 | ) | (9,511 | ) | ||||
Debt finance costs and lender fees | (17,381 | ) | — | |||||
Dividend to shareholders | (9,427 | ) | (9,306 | ) | ||||
Proceeds from share issuance under employee share purchase plan and stock options | 2,088 | 632 | ||||||
Treasury share purchase related to vesting of equity awards | (235 | ) | (128 | ) | ||||
Net cash used in financing activities | $ | (41,705 | ) | $ | (24,251 | ) | ||
Effect of changes in exchange rates on cash and cash equivalents | 397 | 307 | ||||||
Net increase in cash and cash equivalents | 5,126 | 47,469 | ||||||
Cash and cash equivalents at beginning of period | 122,039 | 139,938 | ||||||
Cash and cash equivalents at end of period | $ | 127,165 | $ | 187,407 | ||||
Supplemental disclosures of cash flow information | ||||||||
Interest payments, net of capitalized interest | $ | 31,530 | $ | 30,126 | ||||
Income tax payments, net of refunds | 11,902 | 3,905 | ||||||
Non-cash capital lease additions | 2,164 | 1,651 | ||||||
Non-cash purchase of property and equipment | 4,220 | — |
(in $ thousands) | | | Nine Months Ended September 30, 2018 | | | Nine Months Ended September 30, 2017 | | ||||||
Financing activities | | | | | | | | | | | | | |
Proceeds from term loans | | | | $ | 1,400,000 | | | | | $ | 114,000 | | |
Proceeds from issuance of senior secured notes | | | | | 745,000 | | | | | | — | | |
Repayment of term loans | | | | | (2,161,250) | | | | | | (181,813) | | |
Repayment of capital lease obligations and other indebtedness | | | | | (30,632) | | | | | | (29,811) | | |
Debt finance costs and lender fees | | | | | (21,551) | | | | | | (686) | | |
Dividend to shareholders | | | | | (28,472) | | | | | | (28,234) | | |
Purchase of non-controlling interest in a subsidiary | | | | | — | | | | | | (1,063) | | |
Proceeds from share issuance under employee share purchase plan and stock options | | | | | 8,460 | | | | | | 2,016 | | |
Treasury share purchase related to vesting of equity awards | | | | | (2,621) | | | | | | (2,461) | | |
Other | | | | | (2,240) | | | | | | — | | |
Net cash used in financing activities | | | | $ | (93,306) | | | | | $ | (128,052) | | |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | | | | | (1,126) | | | | | | 1,043 | | |
Net increase in cash, cash equivalents and restricted cash | | | | | 81,767 | | | | | | 64,708 | | |
Cash, cash equivalents and restricted cash at beginning of period (Note 8) | | | | | 122,039 | | | | | | 139,938 | | |
Cash, cash equivalents and restricted cash at end of period (Note 8) | | | | $ | 203,806 | | | | | $ | 204,646 | | |
Supplemental disclosures of cash flow information | | | | | | | | | | | | | |
Interest payments, net of capitalized interest | | | | $ | 77,419 | | | | | $ | 83,294 | | |
Income tax payments, net of refunds | | | | | 36,933 | | | | | | 23,540 | | |
Non-cash capital lease asset additions | | | | | 71,511 | | | | | | 17,984 | | |
Non-cash purchase of property and equipment | | | | | 4,220 | | | | | | 3,120 | | |
(unaudited)
Accumulated | Non- | |||||||||||||||||||||||||||||||||||
Additional | Other | Controlling | Total | |||||||||||||||||||||||||||||||||
Common Shares | Paid in | Treasury Shares | Accumulated | Comprehensive | Interest in | Equity | ||||||||||||||||||||||||||||||
(in $ thousands, except share data) | Number | Amount | Capital | Number | Amount | Deficit | Loss | Subsidiaries | (Deficit) | |||||||||||||||||||||||||||
Balance as of December 31, 2017 | 126,967,010 | $ | 317 | $ | 2,700,133 | 1,620,397 | $ | (24,755 | ) | $ | (2,722,375 | ) | $ | (155,621 | ) | $ | 9,980 | $ | (192,321 | ) | ||||||||||||||||
Change in accounting policy for revenue recognition (see Note 3) | — | — | — | — | — | 986 | — | — | 986 | |||||||||||||||||||||||||||
Dividend to shareholders ($0.075 per common share) | — | — | (9,699 | ) | — | — | — | — | — | (9,699 | ) | |||||||||||||||||||||||||
Equity-based compensation | 293,143 | 1 | 7,342 | — | — | — | — | 956 | 8,299 | |||||||||||||||||||||||||||
Purchase of a non-controlling interest in a subsidiary | — | — | (1,887 | ) | — | — | — | — | 1,887 | — | ||||||||||||||||||||||||||
Treasury shares purchased in relation to vesting of equity awards | — | — | — | 17,445 | (235 | ) | — | — | — | (235 | ) | |||||||||||||||||||||||||
Treasury shares issued in relation to vesting of equity awards | — | — | (123 | ) | (8,008 | ) | 123 | — | — | — | — | |||||||||||||||||||||||||
Comprehensive income, net of tax | — | — | — | — | — | 58,829 | 6,743 | 402 | 65,974 | |||||||||||||||||||||||||||
Balance as of March 31, 2018 | 127,260,153 | $ | 318 | $ | 2,695,766 | 1,629,834 | $ | (24,867 | ) | $ | (2,662,560 | ) | $ | (148,878 | ) | $ | 13,225 | $ | (126,996 | ) |
Accumulated | Non- | |||||||||||||||||||||||||||||||||||
Additional | Other | Controlling | Total | |||||||||||||||||||||||||||||||||
Common Shares | Paid in | Treasury Shares | Accumulated | Comprehensive | Interest in | Equity | ||||||||||||||||||||||||||||||
(in $ thousands, except share data) | Number | Amount | Capital | Number | Amount | Deficit | Loss | Subsidiaries | (Deficit) | |||||||||||||||||||||||||||
Balance as of December 31, 2016 | 124,941,233 | $ | 312 | $ | 2,708,836 | 908,872 | $ | (14,166 | ) | $ | (2,864,838 | ) | $ | (190,072 | ) | $ | 24,146 | $ | (335,782 | ) | ||||||||||||||||
Dividend to shareholders ($0.075 per common share) | — | — | (10,054 | ) | — | — | — | — | — | (10,054 | ) | |||||||||||||||||||||||||
Equity-based compensation | 59,388 | — | 7,168 | — | — | — | — | 1,182 | 8,350 | |||||||||||||||||||||||||||
Treasury shares purchased in relation to vesting of equity awards | — | — | — | 8,916 | (128 | ) | — | — | — | (128 | ) | |||||||||||||||||||||||||
Comprehensive income (loss), net of tax | — | — | — | — | — | 56,106 | 6,936 | (243 | ) | 62,799 | ||||||||||||||||||||||||||
Balance as of March 31, 2017 | 125,000,621 | $ | 312 | $ | 2,705,950 | 917,788 | $ | (14,294 | ) | $ | (2,808,732 | ) | $ | (183,136 | ) | $ | 25,085 | $ | (274,815 | ) |
| | | Common Shares | | | Additional Paid in Capital | | | Treasury Shares | | | Accumulated Deficit | | | Accumulated Other Comprehensive Loss | | | Non- Controlling Interest in Subsidiaries | | | Total Equity (Deficit) | | |||||||||||||||||||||||||||||||||
(in $ thousands, except share data) | | | Number | | | Amount | | | Number | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2017 | | | | | 126,967,010 | | | | | $ | 317 | | | | | $ | 2,700,133 | | | | | | 1,620,397 | | | | | $ | (24,755) | | | | | $ | (2,722,375) | | | | | $ | (155,621) | | | | | $ | 9,980 | | | | | $ | (192,321) | | |
Change in accounting policy for revenue recognition (Note 3) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 986 | | | | | | — | | | | | | — | | | | | | 986 | | |
Dividend to shareholders ($0.225 per common share) | | | | | — | | | | | | — | | | | | | (29,443) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (29,443) | | |
Equity-based compensation | | | | | 1,080,366 | | | | | | 3 | | | | | | 17,547 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,642 | | | | | | 20,192 | | |
Purchase of a non-controlling interest in a subsidiary | | | | | — | | | | | | — | | | | | | (1,887) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,887 | | | | | | — | | |
Treasury shares purchased in relation to vesting of equity awards | | | | | — | | | | | | — | | | | | | — | | | | | | 156,296 | | | | | | (2,621) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,621) | | |
Treasury shares issued in relation to vesting of equity awards | | | | | — | | | | | | — | | | | | | (544) | | | | | | (35,646) | | | | | | 544 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Comprehensive income, net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 70,081 | | | | | | (945) | | | | | | 2,025 | | | | | | 71,161 | | |
Balance as of September 30, 2018 | | | | | 128,047,376 | | | | | $ | 320 | | | | | $ | 2,685,806 | | | | | | 1,741,047 | | | | | $ | (26,832) | | | | | $ | (2,651,308) | | | | | $ | (156,566) | | | | | $ | 16,534 | | | | | $ | (132,046) | | |
|
| | | Common Shares | | | Additional Paid in Capital | | | Treasury Shares | | | Accumulated Deficit | | | Accumulated Other Comprehensive Loss | | | Non- Controlling Interest in Subsidiaries | | | Total Equity (Deficit) | | |||||||||||||||||||||||||||||||||
(in $ thousands, except share data) | | | Number | | | Amount | | | Number | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2016 | | | | | 124,941,233 | | | | | $ | 312 | | | | | $ | 2,708,836 | | | | | | 908,872 | | | | | $ | (14,166) | | | | | $ | (2,864,838) | | | | | $ | (190,072) | | | | | $ | 24,146 | | | | | $ | (335,782) | | |
Dividend to shareholders ($0.225 per common share) | | | | | — | | | | | | — | | | | | | (29,576) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (29,576) | | |
Purchase of non-controlling interest in a subsidiary | | | | | — | | | | | | — | | | | | | (47) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,016) | | | | | | (1,063) | | |
Sale of shares in a subsidiary | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (15,539) | | | | | | (15,539) | | |
Equity-based compensation | | | | | 608,426 | | | | | | 1 | | | | | | 22,813 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,390 | | | | | | 26,204 | | |
Treasury shares purchased in relation to vesting of equity awards | | | | | — | | | | | | — | | | | | | — | | | | | | 194,829 | | | | | | (2,461) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,461) | | |
Treasury shares issued in relation to vesting of equity awards | | | | | — | | | | | | — | | | | | | (639) | | | | | | (41,009) | | | | | | 639 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Comprehensive income, net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 95,883 | | | | | | 28,593 | | | | | | (973) | | | | | | 123,503 | | |
Balance as of September 30, 2017 | | | | | 125,549,659 | | | | | $ | 313 | | | | | $ | 2,701,387 | | | | | | 1,062,692 | | | | | $ | (15,988) | | | | | $ | (2,768,955) | | | | | $ | (161,479) | | | | | $ | 10,008 | | | | | $ | (234,714) | | |
|
(unaudited)
Basis of Presentation
(unaudited)
statements, however, as of September 30, 2018 the Company had $3 million of restricted cash that is included with cash and cash equivalents in its consolidated condensed statements of cash flows (see Note 8—Other Non-Current Assets).
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
Financial Instruments
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
3. Revenue
Three Months Ended | ||||
March 31, | ||||
(in $ thousands) | 2018 | |||
Air | $ | 472,935 | ||
Beyond Air | 179,751 | |||
Travel Commerce Platform(1) | 652,686 | |||
Technology Services | 25,152 | |||
Net revenue | $ | 677,838 |
(in $ thousands) | | | Three Months Ended September 30, 2018 | | | Nine Months Ended September 30, 2018 | | ||||||
Air | | | | $ | 404,643 | | | | | $ | 1,321,525 | | |
Beyond Air | | | | | 192,968 | | | | | | 566,740 | | |
Travel Commerce Platform(1) | | | | | 597,611 | | | | | | 1,888,265 | | |
Technology Services | | | | | 24,974 | | | | | | 74,166 | | |
Net revenue | | | | $ | 622,585 | | | | | $ | 1,962,431 | | |
|
12
(unaudited)
(in $ thousands) | | | Three Months Ended September 30, 2018 | | | Nine Months Ended September 30, 2018 | | ||||||
Asia Pacific | | | | $ | 140,186 | | | | | $ | 426,728 | | |
Europe | | | | | 202,300 | | | | | | 670,082 | | |
Latin America and Canada | | | | | 28,202 | | | | | | 87,517 | | |
Middle East and Africa | | | | | 78,824 | | | | | | 239,593 | | |
International | | | | | 449,512 | | | | | | 1,423,920 | | |
United States | | | | | 148,099 | | | | | | 464,345 | | |
Travel Commerce Platform(1) | | | | $ | 597,611 | | | | | $ | 1,888,265 | | |
|
assets. The opening and closing balances of the Company’s accounts receivables and contract liabilities (current and non-current) are as follows:Whereperformance obligation has been satisfied but not yet invoiced at the reporting date, a contract assetcustomer when that right is recognizedconditioned on the balance sheet. WhereCompany’s future performance obligations. Contract liabilities represent the Company’s obligation to transfer services to a performance obligationcustomer for which the Company has received consideration (or the amount is due) from the customer.yet been satisfied but an invoice has been raised at the reporting date, ahave contract liability is recognized on the balance sheet. Contract Liabilities (in $ thousands) Accounts
Receivable, net(1) Deferred Revenue
(current)(1) Deferred Revenue
(non-current) Balance as of March 31, 2018 $ 231,336 $ 32,186 $ 6,367 Balance as of January 1, 2018 174,765 32,010 6,056 Increase $ 56,571 $ 176 $ 311 Contract Liabilities (in $ thousands)
Receivable, net(1)
(current)(1)
(non-current)(1) Balance as of September 30, 2018 $ 205,067 $ 38,406 $ 4,678 Balance as of January 1, 2018 174,765 32,010 6,056 Increase (Decrease) $ 30,302 $ 6,396 $ (1,378)
The majority
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
Remaining Performance Obligations
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
5. Other Current Assets
March 31, | December 31, | |||||||
(in $ thousands) | 2018 | 2017 | ||||||
Client funds | $ | 34,125 | $ | 15,774 | ||||
Sales and use tax receivables | 32,309 | 30,163 | ||||||
Prepaid expenses | 28,268 | 24,271 | ||||||
Prepaid incentives | 16,236 | 16,677 | ||||||
Derivative assets | 22,238 | 15,233 | ||||||
Other | 9,350 | 7,606 | ||||||
$ | 142,526 | $ | 109,724 |
(in $ thousands) | | | September 30, 2018 | | | December 31, 2017 | | ||||||
Sales and use tax receivables | | | | $ | 32,656 | | | | | $ | 30,163 | | |
Prepaid expenses | | | | | 26,689 | | | | | | 24,271 | | |
Client funds | | | | | 25,643 | | | | | | 15,774 | | |
Prepaid incentives | | | | | 19,771 | | | | | | 16,677 | | |
Derivative assets | | | | | 11,995 | | | | | | 15,233 | | |
Other | | | | | 8,858 | | | | | | 7,606 | | |
| | | | $ | 125,612 | | | | | $ | 109,724 | | |
|
March 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
Accumulated | Accumulated | |||||||||||||||||||||||
(in $ thousands) | Cost | depreciation | Net | Cost | depreciation | Net | ||||||||||||||||||
Capitalized software | $ | 1,074,053 | $ | (850,777 | ) | $ | 223,276 | $ | 1,029,772 | $ | (829,416 | ) | $ | 200,356 | ||||||||||
Computer equipment | 346,769 | (217,089 | ) | 129,680 | 346,846 | (207,484 | ) | 139,362 | ||||||||||||||||
Building and leasehold improvements | 33,389 | (13,745 | ) | 19,644 | 32,834 | (12,972 | ) | 19,862 | ||||||||||||||||
Construction in progress | 62,754 | — | 62,754 | 72,161 | — | 72,161 | ||||||||||||||||||
$ | 1,516,965 | $ | (1,081,611 | ) | $ | 435,354 | $ | 1,481,613 | $ | (1,049,872 | ) | $ | 431,741 |
| | | September 30, 2018 | | | December 31, 2017 | | ||||||||||||||||||||||||||||||
(in $ thousands) | | | Cost | | | Accumulated depreciation | | | Net | | | Cost | | | Accumulated depreciation | | | Net | | ||||||||||||||||||
Capitalized software | | | | $ | 971,678 | | | | | $ | (761,926) | | | | | $ | 209,752 | | | | | $ | 1,029,772 | | | | | $ | (829,416) | | | | | $ | 200,356 | | |
Computer equipment | | | | | 337,017 | | | | | | (161,892) | | | | | | 175,125 | | | | | | 346,846 | | | | | | (207,484) | | | | | | 139,362 | | |
Building and leasehold improvements | | | | | 32,711 | | | | | | (15,373) | | | | | | 17,338 | | | | | | 32,834 | | | | | | (12,972) | | | | | | 19,862 | | |
Construction in progress | | | | | 93,291 | | | | | | — | | | | | | 93,291 | | | | | | 72,161 | | | | | | — | | | | | | 72,161 | | |
| | | | $ | 1,434,697 | | | | | $ | (939,191) | | | | | $ | 495,506 | | | | | $ | 1,481,613 | | | | | $ | (1,049,872) | | | | | $ | 431,741 | | |
|
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
7. Intangible Assets
January 1, | Foreign | March 31, | ||||||||||||||||||
(in $ thousands) | 2018 | Additions | Retirements | Exchange | 2018 | |||||||||||||||
Non-Amortizable Assets: | ||||||||||||||||||||
Goodwill | $ | 1,089,590 | $ | — | $ | — | $ | 925 | $ | 1,090,515 | ||||||||||
Trademarks and tradenames | 313,097 | — | — | — | 313,097 | |||||||||||||||
Other Intangible Assets: | ||||||||||||||||||||
Acquired intangible assets | 743,549 | — | — | 6 | 743,555 | |||||||||||||||
Accumulated amortization | (461,666 | ) | (10,166 | ) | — | (32 | ) | (471,864 | ) | |||||||||||
Acquired intangible assets, net | 281,883 | (10,166 | ) | — | (26 | ) | 271,691 | |||||||||||||
Customer loyalty payments | 380,841 | 45,126 | (10,551 | ) | 2,008 | 417,424 | ||||||||||||||
Accumulated amortization | (166,544 | ) | (22,343 | ) | 10,315 | (843 | ) | (179,415 | ) | |||||||||||
Customer loyalty payments, net | 214,297 | 22,783 | (236 | ) | 1,165 | 238,009 | ||||||||||||||
Other intangible assets, net | $ | 496,180 | $ | 12,617 | $ | (236 | ) | $ | 1,139 | $ | 509,700 |
(in $ thousands) | | | January 1, 2018 | | | Additions | | | Retirements | | | Foreign Exchange | | | September 30, 2018 | | |||||||||||||||
Non-Amortizable Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill | | | | $ | 1,089,590 | | | | | $ | — | | | | | $ | — | | | | | $ | (4,249) | | | | | $ | 1,085,341 | | |
Trademarks and tradenames | | | | | 313,097 | | | | | | — | | | | | | — | | | | | | — | | | | | | 313,097 | | |
Other Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired intangible assets | | | | | 743,549 | | | | | | — | | | | | | — | | | | | | (222) | | | | | | 743,327 | | |
Accumulated amortization | | | | | (461,666) | | | | | | (30,497) | | | | | | — | | | | | | 132 | | | | | | (492,031) | | |
Acquired intangible assets, net | | | | | 281,883 | | | | | | (30,497) | | | | | | — | | | | | | (90) | | | | | | 251,296 | | |
Customer loyalty payments | | | | | 380,841 | | | | | | 63,803 | | | | | | (50,833) | | | | | | (4,351) | | | | | | 389,460 | | |
Accumulated amortization | | | | | (166,544) | | | | | | (64,553) | | | | | | 33,048 | | | | | | 1,895 | | | | | | (196,154) | | |
Customer loyalty payments, net | | | | | 214,297 | | | | | | (750) | | | | | | (17,785) | | | | | | (2,456) | | | | | | 193,306 | | |
Other intangible assets, net | | | | $ | 496,180 | | | | | $ | (31,247) | | | | | $ | (17,785) | | | | | $ | (2,546) | | | | | $ | 444,602 | | |
|
January 1, | Foreign | March 31, | ||||||||||||||||||
(in $ thousands) | 2017 | Additions | Retirements | Exchange | 2017 | |||||||||||||||
Non-Amortizable Assets: | ||||||||||||||||||||
Goodwill | $ | 1,079,951 | $ | — | $ | — | $ | 2,364 | $ | 1,082,315 | ||||||||||
Trademarks and tradenames | 313,097 | — | — | — | 313,097 | |||||||||||||||
Other Intangible Assets: | ||||||||||||||||||||
Acquired intangible assets | 1,127,059 | — | (368,715 | ) | 26 | 758,370 | ||||||||||||||
Accumulated amortization | (804,089 | ) | (10,392 | ) | 368,715 | (52 | ) | (445,818 | ) | |||||||||||
Acquired intangible assets, net | 322,970 | (10,392 | ) | — | (26 | ) | 312,552 | |||||||||||||
Customer loyalty payments | 358,259 | 28,354 | (12,908 | ) | 2,076 | 375,781 | ||||||||||||||
Accumulated amortization | (169,622 | ) | (18,795 | ) | 12,908 | (2,074 | ) | (177,583 | ) | |||||||||||
Customer loyalty payments, net | 188,637 | 9,559 | — | 2 | 198,198 | |||||||||||||||
Other intangible assets, net | $ | 511,607 | $ | (833 | ) | $ | — | $ | (24 | ) | $ | 510,750 |
(in $ thousands) | | | January 1, 2017 | | | Additions | | | Retirements | | | Foreign Exchange | | | September 30, 2017 | | |||||||||||||||
Non-Amortizable Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill | | | | $ | 1,079,951 | | | | | $ | — | | | | | $ | — | | | | | $ | 8,702 | | | | | $ | 1,088,653 | | |
Trademarks and tradenames | | | | | 313,097 | | | | | | — | | | | | | — | | | | | | — | | | | | | 313,097 | | |
Other Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired intangible assets | | | | | 1,127,059 | | | | | | — | | | | | | (383,715) | | | | | | 179 | | | | | | 743,523 | | |
Accumulated amortization | | | | | (804,089) | | | | | | (30,688) | | | | | | 383,715 | | | | | | (338) | | | | | | (451,400) | | |
Acquired intangible assets, net | | | | | 322,970 | | | | | | (30,688) | | | | | | — | | | | | | (159) | | | | | | 292,123 | | |
Customer loyalty payments | | | | | 358,259 | | | | | | 95,131 | | | | | | (73,463) | | | | | | 7,201 | | | | | | 387,128 | | |
Accumulated amortization | | | | | (169,622) | | | | | | (57,348) | | | | | | 69,063 | | | | | | (3,806) | | | | | | (161,713) | | |
Customer loyalty payments, net | | | | | 188,637 | | | | | | 37,783 | | | | | | (4,400) | | | | | | 3,395 | | | | | | 225,415 | | |
Other intangible assets, net | | | | $ | 511,607 | | | | | $ | 7,095 | | | | | $ | (4,400) | | | | | $ | 3,236 | | | | | $ | 517,538 | | |
|
(in $ thousands) | | | September 30, 2018 | | | December 31, 2017 | | ||||||
Prepaid incentives | | | | $ | 32,055 | | | | | $ | 35,645 | | |
Pension assets | | | | | 10,013 | | | | | | 8,674 | | |
Derivative assets | | | | | 8,181 | | | | | | 3,503 | | |
Supplier prepayments | | | | | 4,312 | | | | | | 10,983 | | |
Restricted cash | | | | | 3,473 | | | | | | — | | |
Deferred financing costs | | | | | 1,620 | | | | | | 1,930 | | |
Other | | | | | 12,871 | | | | | | 16,073 | | |
| | | | $ | 72,525 | | | | | $ | 76,808 | | |
|
(unaudited)
8. Other Non-Current Assets
Other non-current assets consisted of:
March 31, | December 31, | |||||||
(in $ thousands) | 2018 | 2017 | ||||||
Prepaid incentives | $ | 35,349 | $ | 35,645 | ||||
Pension assets | 9,985 | 8,674 | ||||||
Supplier prepayments | 8,461 | 10,983 | ||||||
Derivative assets | 7,740 | 3,503 | ||||||
Deferred financing costs | 1,828 | 1,930 | ||||||
Other | 13,995 | 16,073 | ||||||
$ | 77,358 | $ | 76,808 |
Total restructuring charges recognized of $0$2 million and $3$8 million for the three and nine months ended March 31, 2018 andSeptember 30, 2017, respectively, are included within selling, general and administrative expenses in the Company’s consolidated condensed statements of operations.
March 31, | December 31, | |||||||
(in $ thousands) | 2018 | 2017 | ||||||
Accrued commissions and incentives | $ | 356,856 | $ | 282,954 | ||||
Accrued payroll and related | 61,631 | 70,234 | ||||||
Deferred revenue | 55,683 | 48,096 | ||||||
Income tax payable | 35,113 | 32,986 | ||||||
Customer prepayments | 34,125 | 15,774 | ||||||
Derivative liabilities | 1,397 | 292 | ||||||
Accrued interest expense | 4,131 | 12,010 | ||||||
Pension and post-retirement benefit liabilities | 1,699 | 1,628 | ||||||
Other | 26,135 | 45,094 | ||||||
$ | 576,770 | $ | 509,068 |
(in $ thousands) | | | September 30, 2018 | | | December 31, 2017 | | ||||||
Accrued commissions and incentives | | | | $ | 328,361 | | | | | $ | 282,954 | | |
Accrued payroll and related | | | | | 81,683 | | | | | | 70,234 | | |
Deferred revenue | | | | | 66,381 | | | | | | 48,096 | | |
Income tax payable | | | | | 29,009 | | | | | | 32,986 | | |
Customer prepayments | | | | | 25,643 | | | | | | 15,774 | | |
Derivative liabilities | | | | | 13,769 | | | | | | 292 | | |
Accrued interest expense | | | | | 9,442 | | | | | | 12,010 | | |
Pension and post-retirement benefit liabilities | | | | | 1,607 | | | | | | 1,628 | | |
Other | | | | | 18,365 | | | | | | 45,094 | | |
| | | | $ | 574,260 | | | | | $ | 509,068 | | |
|
(unaudited)
Interest | March 31, | December 31, | ||||||||||
(in $ thousands) | rate | Maturity | 2018 | 2017 | ||||||||
Senior Secured Credit Agreement | ||||||||||||
Term loans – (2018 Credit Agreement)(1) | L+2.50% | March 2025 | $ | 1,385,934 | $ | — | ||||||
Term loans – (2014 Credit Agreement)(2) | L+2.75% | September 2021 | — | 2,124,439 | ||||||||
Revolver borrowings – (2018 Credit Agreement) | L+2.25% | September 2022 | — | — | ||||||||
Revolver borrowings – (2014 Credit Agreement) | L+2.50% | September 2022 | — | — | ||||||||
Senior Secured Notes | ||||||||||||
Senior secured notes(3) | 6.00% | March 2026 | 737,404 | — | ||||||||
Capital leases and other indebtedness | 99,786 | 105,574 | ||||||||||
Total debt | 2,223,124 | 2,230,013 | ||||||||||
Less: current portion | 54,089 | 64,291 | ||||||||||
Long-term debt | $ | 2,169,035 | $ | 2,165,722 |
(in $ thousands) | | | Interest rate | | | Maturity | | | September 30, 2018 | | | December 31, 2017 | | |||||||||
Senior Secured Credit Agreement | | | | | | | | | | | | | | | | | | | | | | |
Term loans – (2018 Credit Agreement)(1) | | | | | L+2.50% | | | | March 2025 | | | | $ | 1,379,511 | | | | | $ | — | | |
Term loans – (2014 Credit Agreement)(2) | | | | | L+2.75% | | | | September 2021 | | | | | — | | | | | | 2,124,439 | | |
Revolver borrowings – (2018 Credit Agreement) | | | | | L+2.25% | | | | September 2022 | | | | | — | | | | | | — | | |
Revolver borrowings – (2014 Credit Agreement) | | | | | L+2.50% | | | | September 2022 | | | | | — | | | | | | — | | |
Senior Secured Notes | | | | | | | | | | | | | | | | | | | | | | |
Senior secured notes(3) | | | | | 6.00% | | | | March 2026 | | | | | 737,881 | | | | | | — | | |
Capital leases and other indebtedness | | | | | | | | | | | | | | 147,156 | | | | | | 105,574 | | |
Total debt | | | | | | | | | | | | | | 2,264,548 | | | | | | 2,230,013 | | |
Less: current portion | | | | | | | | | | | | | | 58,377 | | | | | | 64,291 | | |
Long-term debt | | | | | | | | | | | | | $ | 2,206,171 | | | | | $ | 2,165,722 | | |
|
alongtogether with the proceeds from the issuance of senior secured notes (discussed below) and cash on the balance sheet, to repay the outstanding balance remaining of the term loans under the previous senior secured credit agreement (the “2014 Credit Agreement”) and to pay the related transaction expenses and fees.Upon the repayment in full of the obligations, the 2014 Credit Agreement was terminated.The Company recorded the debt refinancing transaction as the issuance of new debt and extinguishment of prior debt and recognized a loss on early extinguishment of debt of $28 million in its consolidated condensed statements of operations for the threenine months ended March 31,September 30, 2018.
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
Further, during the threenine months ended March 31,September 30, 2018, the Company (i) repaid $8 million principal amount of term loans outstanding under the 2018 Credit Agreement, including a quarterly installment of$4 million voluntary prepayment, (ii) repaid $6 million principal amount of term loans outstanding under the 2014 Credit Agreement, (ii)(iii) amortized $1$2 million of each of debt finance costs and $1 million of debt discount, (iii)(iv) repaid $7$28 million under its capital lease obligations and entered into $2 million of new capital leases arrangements for information technology assets resulting in a $72 million increase in capital lease obligations and (iv)(v) repaid $1$3 million under its other indebtedness obligations.
Capital Leases | ||||||||||||
(in $ thousands) | Term | Senior Secured | and Other | |||||||||
Year ending March 31, | Loans | Notes | Indebtedness | |||||||||
2019 | $ | 10,500 | $ | — | $ | 43,589 | ||||||
2020 | 14,000 | — | 29,951 | |||||||||
2021 | 14,000 | — | 16,638 | |||||||||
2022 | 14,000 | — | 8,260 | |||||||||
2023 | 14,000 | — | 1,348 | |||||||||
Thereafter | 1,333,500 | 745,000 | — | |||||||||
1,400,000 | 745,000 | 99,786 | ||||||||||
Less: Unamortized debt finance cost | (7,110 | ) | (7,596 | ) | — | |||||||
Less: Unamortized debt discount | (6,956 | ) | — | — | ||||||||
Total debt | $ | 1,385,934 | $ | 737,404 | $ | 99,786 |
(in $ thousands) Year ending September 30, | | | Term Loans | | | Senior Secured Notes | | | Capital Leases and Other Indebtedness | | |||||||||
2019 | | | | $ | 14,000 | | | | | $ | — | | | | | $ | 44,378 | | |
2020 | | | | | 14,000 | | | | | | — | | | | | | 42,198 | | |
2021 | | | | | 14,000 | | | | | | — | | | | | | 36,038 | | |
2022 | | | | | 14,000 | | | | | | — | | | | | | 23,321 | | |
2023 | | | | | 14,000 | | | | | | — | | | | | | — | | |
Thereafter | | | | | 1,322,500 | | | | | | 745,000 | | | | | | 1,221 | | |
| | | | | 1,392,500 | | | | | | 745,000 | | | | | | 147,156 | | |
Less: Unamortized debt finance cost | | | | | (6,551) | | | | | | (7,119) | | | | | | — | | |
Less: Unamortized debt discount | | | | | (6,438) | | | | | | — | | | | | | — | | |
Total debt | | | | $ | 1,379,511 | | | | | $ | 737,881 | | | | | $ | 147,156 | | |
|
Three Months | Three Months | |||||||
Ended March 31, | Ended March 31, | |||||||
(in $ thousands) | 2018 | 2017 | ||||||
Balance as of January 1 | $ | 14,708 | $ | 22,855 | ||||
Capitalization of debt finance costs | 14,799 | — | ||||||
Amortization | (914 | ) | (1,417 | ) | ||||
Write-off on early extinguishment of debt | (12,059 | ) | — | |||||
Balance as of March 31 | $ | 16,534 | $ | 21,438 |
(in $ thousands) | | | Nine Months Ended September 30, 2018 | | | Nine Months Ended September 30, 2017 | | ||||||
Balance as of January 1 | | | | $ | 14,708 | | | | | $ | 22,855 | | |
Capitalization of debt finance costs | | | | | 14,799 | | | | | | 686 | | |
Amortization | | | | | (2,139) | | | | | | (4,033) | | |
Write-off on early extinguishment of debt | | | | | (12,078) | | | | | | (3,306) | | |
Balance as of September 30 | | | | $ | 15,290 | | | | | $ | 16,202 | | |
|
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
Debt Covenants and Guarantees
Average | ||||||
Notional Amount | Interest | |||||
($ in thousands) | Period | Rate | ||||
1,400,000 | February 2017 to February 2019 | 1.4010% | ||||
1,200,000 | February 2019 to February 2020 | 2.1906% | ||||
400,000 | February 2020 to February 2021 | 2.1925% |
(unaudited)
Notional Amount ($ in thousands) | | | Period | | | Average Interest Rate | | |||
1,400,000 | | | February 2017 to February 2019 | | | | | 1.4010% | | |
1,200,000 | | | February 2019 to February 2020 | | | | | 2.1906% | | |
400,000 | | | February 2020 to February 2021 | | | | | 2.1925% | | |
200,000 | | | February 2021 to February 2022 | | | | | 2.9913% | | |
(in $ thousands) | | | September 30, 2018 | | | December 31, 2017 | | | | | ||||||
Interest rate swap contracts | | | | $ | 3,200,000 | | | | | $ | 3,000,000 | | | | ||
Foreign currency contracts | | | | | 439,137 | | | | | | 373,487 | | | |
Fair Value Asset | Fair Value (Liability) | |||||||||||||||||||
Balance Sheet | March 31, | December 31, | Balance Sheet | March 31, | December 31, | |||||||||||||||
(in $ thousands) | Location | 2018 | 2017 | Location | 2018 | 2017 | ||||||||||||||
Interest rate swap contracts | Other current assets | $ | 10,940 | $ | 4,799 | Accrued expenses and other current liabilities | $ | — | $ | — | ||||||||||
Interest rate swap contracts | Other non-current assets | 7,740 | 3,503 | Other non-current liabilities | — | (51 | ) | |||||||||||||
Foreign currency contracts | Other current assets | 11,298 | 10,434 | Accrued expenses and other current liabilities | (1,397 | ) | (292 | ) | ||||||||||||
Total fair value of derivative assets (liabilities) | $ | 29,978 | $ | 18,736 | $ | (1,397 | ) | $ | (343 | ) |
As of March 31, 2018, the net notional amounts of the Company’s derivative contracts and the periods covered by them are as follows:
March 31, | December 31, | |||||||
(in $ thousands) | 2018 | 2017 | ||||||
Interest rate swap contracts (varying contracts and periods as discussed above) | $ | 3,000,000 | $ | 3,000,000 | ||||
Foreign currency contracts (covering the period until March 2019) | 409,652 | 373,487 |
| | | | | | Fair Value Asset | | | | | | Fair Value (Liability) | | ||||||||||||||||||
(in $ thousands) | | | Balance Sheet Location | | | September 30, 2018 | | | December 31, 2017 | | | Balance Sheet Location | | | September 30, 2018 | | | December 31, 2017 | | ||||||||||||
Interest rate swap contracts | | | Other current assets | | | | $ | 11,721 | | | | | $ | 4,799 | | | | Accrued expenses and other current liabilities | | | | $ | — | | | | | $ | — | | |
Interest rate swap contracts | | | Other non-current assets | | | | | 8,181 | | | | | | 3,503 | | | | Other non-current liabilities | | | | | — | | | | | | (51) | | |
Foreign currency contracts | | | Other current assets | | | | | 274 | | | | | | 10,434 | | | | Accrued expenses and other current liabilities | | | | | (13,769) | | | | | | (292) | | |
Total fair value of derivative assets (liabilities) | | | | | | | $ | 20,176 | | | | | $ | 18,736 | | | | | | | | $ | (13,769) | | | | | $ | (343) | | |
|
Three Months Ended | Three Months Ended | |||||||
(in $ thousands) | March 31, 2018 | March 31, 2017 | ||||||
Net derivative asset (liability) opening balance | $ | 18,393 | $ | (19,196 | ) | |||
Total gain for the period included in net income | 16,281 | 2,284 | ||||||
(Proceeds from) payments on settlement of derivative contracts | (6,093 | ) | 5,136 | |||||
Net derivative asset (liability) closing balance | $ | 28,581 | $ | (11,776 | ) |
(in $ thousands) | | | Nine Months Ended September 30, 2018 | | | Nine Months Ended September 30, 2017 | | ||||||
Net derivative asset (liability) opening balance | | | | $ | 18,393 | | | | | $ | (19,196) | | |
Total (loss) gain for the period included in net income | | | | | (460) | | | | | | 12,099 | | |
(Proceeds from) payments on settlement of derivative contracts | | | | | (11,526) | | | | | | 13,495 | | |
Net derivative asset closing balance | | | | $ | 6,407 | | | | | $ | 6,398 | | |
|
Amount of Gain | ||||||||||
Recorded in Net Income | ||||||||||
Three Months Ended | ||||||||||
Location of Gain Recorded | March 31, | |||||||||
(in $ thousands) | in Statement of Operations | 2018 | 2017 | |||||||
Interest rate swap contracts | Interest expense, net | $ | 11,222 | $ | 226 | |||||
Foreign currency contracts | Selling, general and administrative | 5,059 | 2,058 | |||||||
$ | 16,281 | $ | 2,284 |
| | | | | | Amount of Gain (Loss) Recorded in Net Income | | |||||||||||||||||||||
| | | | | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||
(in $ thousands) | | | Statement of Operations Location | | | 2018 | | | 2017 | | | 2018 | | | 2017 | | ||||||||||||
Interest rate swap contracts | | | Interest expense, net | | | | $ | 2,143 | | | | | $ | 1,332 | | | | | | 18,231 | | | | | | (3,322) | | |
Foreign currency contracts | | | Selling, general and administrative | | | | | (5,701) | | | | | | 4,238 | | | | | | (18,691) | | | | | | 15,421 | | |
| | | | | | | $ | (3,558) | | | | | $ | 5,570 | | | | | | (460) | | | | | | 12,099 | | |
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
The fair values of the Company’s other financial instruments are as follows:
March 31, 2018 | December 31, 2017 | |||||||||||||||||
(in $ thousands) | Fair Value Hierarchy | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Asset (liability) | ||||||||||||||||||
Derivative assets | Level 2 | $ | 29,978 | $ | 29,978 | $ | 18,736 | $ | 18,736 | |||||||||
Derivative liabilities | Level 2 | (1,397 | ) | (1,397 | ) | (343 | ) | (343 | ) | |||||||||
Total debt | Level 2 | (2,223,124 | ) | (2,249,765 | ) | (2,230,013 | ) | (2,258,893 | ) |
| | | | | | September 30, 2018 | | | December 31, 2017 | | ||||||||||||||||||
(in $ thousands) | | | Fair Value Hierarchy | | | Carrying Amount | | | Fair Value | | | Carrying Amount | | | Fair Value | | ||||||||||||
Asset (liability) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative assets | | | Level 2 | | | | $ | 20,176 | | | | | $ | 20,176 | | | | | $ | 18,736 | | | | | $ | 18,736 | | |
Derivative liabilities | | | Level 2 | | | | | (13,769) | | | | | | (13,769) | | | | | | (343) | | | | | | (343) | | |
Total debt | | | Level 2 | | | | | (2,264,548) | | | | | | (2,291,939) | | | | | | (2,230,013) | | | | | | (2,258,893) | | |
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
14. Equity
Declaration Date | | | Dividend Per Share | | | Record Date | | | Payment Date | | | Amount (in $ thousands) | | ||||||
February 16, 2018 | | | | $ | 0.075 | | | | March 1, 2018 | | | March 15, 2018 | | | | $ | 9,406 | | |
May 2, 2018 | | | | | 0.075 | | | | June 7, 2018 | | | June 21, 2018 | | | | | 9,459 | | |
August 1, 2018 | | | | | 0.075 | | | | September 6, 2018 | | | September 20, 2018 | | | | | 9,473 | | |
Dividend | Record | Payment | Amount | |||||||
Declaration Date | Per Share | Date | Date | (in $ thousands) | ||||||
February 16, 2018 | $0.075 | March 1, 2018 | March 15, 2018 | $9,406 |
On May 2, 2018, the Company’s Board of Directors declared a cash dividend of $0.075 per common share (see Note 18—Subsequent Events).
Weighted Average | ||||||||
Grant Date | ||||||||
(in dollars, except number of RSUs) | Number | Fair Value | ||||||
Balance as of January 1, 2018 | 1,526,280 | $ | 13.01 | |||||
Granted at fair market value | 794,679 | $ | 14.35 | |||||
Vested(1) | (36,259 | ) | $ | 13.07 | ||||
Forfeited | (129,551 | ) | $ | 12.96 | ||||
Balance as of March 31, 2018 | 2,155,149 | $ | 13.50 |
(in dollars, except number of RSUs) | | | Number | | | Weighted Average Grant Date Fair Value | | ||||||
Balance as of January 1, 2018 | | | | | 1,526,280 | | | | | $ | 13.01 | | |
Granted at fair market value | | | | | 857,133 | | | | | $ | 14.62 | | |
Vested(1) | | | | | (433,359) | | | | | $ | 12.95 | | |
Forfeited | | | | | (316,898) | | | | | $ | 13.31 | | |
Balance as of September 30, 2018 | | | | | 1,633,156 | | | | | $ | 13.81 | | |
|
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
three months ended March 31,first quarter of 2018, as part of its annual grant program, the Company granted 1,246,803 PSUs. The PSUs cliff-vest at the end of approximately three years from the date of the grant based on the satisfaction of certain performance conditions and continued employment of the employee during the vesting period. The ultimate number of PSUs that will vest also depends on the Company’s ranking within a group of companies based on achievement of its total shareholder’s return (“TSR”) during the applicable performance period compared to the TSR of the companies within the selected group. However, the total number of PSUs that will ultimately vest will not exceed 200% of the original grant. Each reporting period, the Company assesses the probability of vesting, and, if there is any change in such probability, the Company records the cumulative effect of the adjustment in the current reporting period. All of the PSUs arewill be settled in the Company’s common shares. PSUs accrue dividend equivalents associated with the underlying common shares as dividends are declared by the Company. Dividends will generally be paid to holders of PSUs in cash upon the vesting of the associated PSUs and will be forfeited should the PSUs not vest. The PSUs do not have an exercise price. For PSUs earned based on a market condition, the Company
Weighted Average | ||||||||
Grant Date | ||||||||
(in dollars, except number of PSUs) | Number | Fair Value | ||||||
Balance as of January 1, 2018 | 2,694,999 | $ | 13.10 | |||||
Granted at fair market value | 1,444,522 | $ | 16.33 | |||||
Forfeited | (351,937 | ) | $ | 12.94 | ||||
Balance as of March 31, 2018(1) | 3,787,584 | $ | 14.32 |
(in dollars, except number of PSUs) | | | Number | | | Weighted Average Grant Date Fair Value | | ||||||
Balance as of January 1, 2018 | | | | | 2,694,999 | | | | | $ | 13.10 | | |
Granted at fair market value | | | | | 1,444,522 | | | | | $ | 16.33 | | |
Forfeited | | | | | (825,573) | | | | | $ | 13.57 | | |
Vested(1) | | | | | (11,290) | | | | | $ | 15.50 | | |
Balance as of September 30, 2018(2) | | | | | 3,302,658 | | | | | $ | 14.37 | | |
|
Stock Options
Weighted Average | ||||||||||||||||
Weighted Average | Remaining | Aggregate | ||||||||||||||
Exercise Price | Contractual Terms | Intrinsic Value | ||||||||||||||
Number of Options | (in dollars) | (in years) | (in $ thousands) | |||||||||||||
Balance as of January 1, 2018 | 2,352,928 | $ | 13.51 | |||||||||||||
Forfeited | (107,410 | ) | $ | 13.55 | ||||||||||||
Exercised | (290,160 | ) | $ | 9.92 | ||||||||||||
Expired | (40,984 | ) | $ | 15.53 | ||||||||||||
Balance as of March 31, 2018 | 1,914,374 | $ | 14.01 | 7.24 | $ | 4,506 | ||||||||||
Exercisable as of March 31, 2018 | 841,211 | $ | 14.45 | 6.55 | $ | 1,618 | ||||||||||
Expected to vest as of March 31, 2018 | 1,073,163 | $ | 13.66 | 7.78 | $ | 2,888 |
| | | Number of Options | | | Weighted Average Exercise Price (in dollars) | | | Weighted Average Remaining Contractual Terms (in years) | | | Aggregate Intrinsic Value (in $ thousands) | | ||||||||||||
Balance as of January 1, 2018 | | | | | 2,352,928 | | | | | $ | 13.51 | | | | | | | | | | | | | | |
Forfeited | | | | | (253,643) | | | | | $ | 13.72 | | | | | | | | | | | | | | |
Exercised | | | | | (594,616) | | | | | $ | 11.68 | | | | | | | | | | | | | | |
Expired | | | | | (46,112) | | | | | $ | 15.58 | | | | | | | | | | | | | | |
Balance as of September 30, 2018 | | | | | 1,458,557 | | | | | $ | 14.15 | | | | | | 7.01 | | | | | $ | 3,984 | | |
Exercisable as of September 30, 2018 | | | | | 782,037 | | | | | $ | 14.48 | | | | | | 6.83 | | | | | $ | 1,880 | | |
Expected to vest as of September 30, 2018 | | | | | 676,520 | | | | | $ | 13.77 | | | | | | 7.23 | | | | | $ | 2,104 | | |
|
2017, respectively.
TRAVELPORT WORLDWIDE LIMITED
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
16. Income Per Share
Three Months Ended March 31, | ||||||||
(in $ thousands, except for share data) | 2018 | 2017 | ||||||
Numerator – Basic and Diluted Income per Share: | ||||||||
Net income from continuing operations | $ | 31,484 | $ | 55,863 | ||||
Net (income) loss attributable to non-controlling interest in subsidiaries | (402 | ) | 243 | |||||
Net income from continuing operations attributable to the Company | $ | 31,082 | $ | 56,106 | ||||
Denominator – Basic Income per Share: | ||||||||
Weighted average common shares outstanding | 125,428,257 | 124,081,175 | ||||||
Income per share from continuing operations – Basic | $ | 0.25 | $ | 0.45 | ||||
Denominator – Diluted Income per Share: | ||||||||
Number of common shares used for basic income per share from continuing operations | 125,428,257 | 124,081,175 | ||||||
Weighted average effect of dilutive securities | ||||||||
RSUs / PSUs | 604,051 | 1,342,130 | ||||||
Stock options | 98,893 | 93,640 | ||||||
Weighted average common shares outstanding | 126,131,201 | 125,516,945 | ||||||
Income per share from continuing operations – Diluted | $ | 0.25 | $ | 0.45 |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||
(in $ thousands, except for share data) | | | 2018 | | | 2017 | | | 2018 | | | 2017 | | ||||||||||||
Numerator – Basic and Diluted Income per Share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income from continuing operations | | | | $ | 5,870 | | | | | $ | 4,681 | | | | | $ | 44,359 | | | | | $ | 94,910 | | |
Net (income) loss attributable to non-controlling interest in subsidiaries | | | | | (762) | | | | | | 169 | | | | | | (2,025) | | | | | | 973 | | |
Net income from continuing operations attributable to the Company | | | | $ | 5,108 | | | | | $ | 4,850 | | | | | $ | 42,334 | | | | | $ | 95,883 | | |
Denominator – Basic Income per Share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | | | 126,246,210 | | | | | | 124,469,069 | | | | | | 125,908,707 | | | | | | 124,303,716 | | |
Income per share from continuing operations – Basic | | | | $ | 0.04 | | | | | $ | 0.04 | | | | | $ | 0.34 | | | | | $ | 0.77 | | |
Denominator – Diluted Income per Share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of common shares used for basic income per share from continuing operations | | | | | 126,246,210 | | | | | | 124,469,069 | | | | | | 125,908,707 | | | | | | 124,303,716 | | |
Weighted average effect of dilutive securities | | | | | | | | | | | | | | | | | | | | | | | | | |
RSUs/PSUs | | | | | 1,881,201 | | | | | | 1,603,721 | | | | | | 1,819,470 | | | | | | 1,424,009 | | |
Stock options | | | | | 261,974 | | | | | | 115,582 | | | | | | 126,301 | | | | | | 99,815 | | |
Weighted average common shares outstanding | | | | | 128,389,385 | | | | | | 126,188,372 | | | | | | 127,854,478 | | | | | | 125,827,540 | | |
Income per share from continuing operations – Diluted | | | | $ | 0.04 | | | | | $ | 0.04 | | | | | $ | 0.33 | | | | | $ | 0.76 | | |
|
This release of the indemnity provision did not have any impact on the consolidated condensed statements of cash flows.
Technology Services
Three Months | ||||||||||||||||
Ended March 31, | Change | |||||||||||||||
(in $ thousands, except share data, Reported Segments and RevPas) | 2018 | 2017 | $ | % | ||||||||||||
Net revenue | $ | 677,838 | $ | 650,763 | 27,075 | 4 | ||||||||||
Operating income | 77,664 | 99,716 | (22,052 | ) | (22 | ) | ||||||||||
Net income | 59,231 | 55,863 | 3,368 | 6 | ||||||||||||
Income per share – diluted (in $) | 0.47 | 0.45 | 0.02 | 4 | ||||||||||||
Adjusted EBITDA(1) | 154,177 | 168,553 | (14,376 | ) | (9 | ) | ||||||||||
Adjusted Operating Income(2) | 93,436 | 107,241 | (13,805 | ) | (13 | ) | ||||||||||
Adjusted Net Income(3) | 54,938 | 64,357 | (9,419 | ) | (15 | ) | ||||||||||
Adjusted Income per Share – diluted(4) (in $) | 0.44 | 0.51 | (0.07 | ) | (15 | ) | ||||||||||
Net cash provided by operating activities | 83,097 | 95,022 | (11,925 | ) | (13 | ) | ||||||||||
Free Cash Flow(5) | 46,434 | 71,413 | (24,979 | ) | (35 | ) | ||||||||||
Reported Segments (in thousands) | 92,321 | 93,197 | (876 | ) | (1 | ) | ||||||||||
Travel Commerce Platform RevPas (in $) | 7.07 | 6.67 | 0.40 | 6 |
(in $ thousands, except share data, Reported Segments and RevPas) | | | Three Months Ended September 30, | | | Change | | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||||||||||||||||||||
| 2018 | | | 2017 | | | | | | | | | % | | | 2018 | | | 2017 | | | | | | | | | % | | ||||||||||||||||||||
Net revenue | | | | $ | 622,585 | | | | | $ | 610,842 | | | | | $ | 11,743 | | | | | | 2 | | | | | $ | 1,962,431 | | | | | $ | 1,873,712 | | | | | $ | 88,719 | | | | | | 5 | | |
Operating income | | | | | 44,115 | | | | | | 61,585 | | | | | | (17,470) | | | | | | (28) | | | | | | 164,072 | | | | | | 235,997 | | | | | | (71,925) | | | | | | (30) | | |
Net income | | | | | 5,870 | | | | | | 4,681 | | | | | | 1,189 | | | | | | 25 | | | | | | 72,106 | | | | | | 94,910 | | | | | | (22,804) | | | | | | (24) | | |
Income per share – diluted (in $) | | | | | 0.04 | | | | | | 0.04 | | | | | | — | | | | | | 4 | | | | | | 0.55 | | | | | | 0.76 | | | | | | (0.21) | | | | | | (28) | | |
Adjusted EBITDA(1) | | | | | 139,313 | | | | | | 136,437 | | | | | | 2,876 | | | | | | 2 | | | | | | 450,413 | | | | | | 451,996 | | | | | | (1,583) | | | | | | — | | |
Adjusted Operating Income(2) | | | | | 79,219 | | | | | | 76,392 | | | | | | 2,827 | | | | | | 4 | | | | | | 268,211 | | | | | | 268,465 | | | | | | (254) | | | | | | — | | |
Adjusted Net Income(3) | | | | | 40,040 | | | | | | 22,671 | | | | | | 17,369 | | | | | | 77 | | | | | | 146,906 | | | | | | 137,034 | | | | | | 9,872 | | | | | | 7 | | |
Adjusted Income per Share – diluted(4) (in $) | | | | | 0.31 | | | | | | 0.18 | | | | | | 0.13 | | | | | | 74 | | | | | | 1.15 | | | | | | 1.09 | | | | | | 0.06 | | | | | | 6 | | |
Net cash provided by operating activities | | | | | 83,149 | | | | | | 95,735 | | | | | | (12,586) | | | | | | (13) | | | | | | 285,435 | | | | | | 274,342 | | | | | | 11,093 | | | | | | 4 | | |
Free Cash Flow(5) | | | | | 48,379 | | | | | | 63,372 | | | | | | (14,993) | | | | | | (24) | | | | | | 176,199 | | | | | | 195,150 | | | | | | (18,951) | | | | | | (10) | | |
Reported Segments (in thousands) | | | | | 81,579 | | | | | | 85,397 | | | | | | (3,818) | | | | | | (4) | | | | | | 260,831 | | | | | | 264,975 | | | | | | (4,144) | | | | | | (2) | | |
Travel Commerce Platform RevPas (in $) | | | | | 7.33 | | | | | | 6.86 | | | | | | 0.47 | | | | | | 7 | | | | | | 7.24 | | | | | | 6.76 | | | | | | 0.48 | | | | | | 7 | | |
Three Months Ended | ||||||||
March 31, | ||||||||
(in $ thousands) | 2018 | 2017 | ||||||
Net income | $ | 59,231 | $ | 55,863 | ||||
Adjustments: | ||||||||
Amortization of acquired intangible assets(1) | 10,166 | 10,392 | ||||||
Loss on early extinguishment of debt | 27,661 | — | ||||||
Equity-based compensation and related taxes | 4,833 | 7,786 | ||||||
Corporate and restructuring costs(2) | 1,215 | 5,656 | ||||||
Impairment of long-lived assets(3) | 491 | 685 | ||||||
Income from discontinued operations | (27,747 | ) | — | |||||
Other – non cash(4) | (11,363 | ) | (16,374 | ) | ||||
Tax adjustments(5) | (9,549 | ) | 349 | |||||
Adjusted Net Income | 54,938 | 64,357 | ||||||
Adjustments: | ||||||||
Interest expense, net(6) | 25,365 | 30,501 | ||||||
Other expense(7) | 93 | — | ||||||
Remaining provision for income taxes | 13,040 | 12,383 | ||||||
Adjusted Operating Income | 93,436 | 107,241 | ||||||
Adjustments: | ||||||||
Depreciation and amortization of property and equipment | 38,398 | 42,517 | ||||||
Amortization of customer loyalty payments | 22,343 | 18,795 | ||||||
Adjusted EBITDA | $ | 154,177 | $ | 168,553 |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | 2018 | | | 2017 | | ||||||||||||
Net income | | | | $ | 5,870 | | | | | $ | 4,681 | | | | | $ | 72,106 | | | | | $ | 94,910 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of acquired intangible assets(1) | | | | | 10,165 | | | | | | 10,165 | | | | | | 30,497 | | | | | | 30,688 | | |
Gain on sale of a subsidiary | | | | | — | | | | | | — | | | | | | — | | | | | | (1,217) | | |
Loss on early extinguishment of debt | | | | | 38 | | | | | | 4,682 | | | | | | 27,699 | | | | | | 4,682 | | |
Equity-based compensation and related taxes | | | | | (207) | | | | | | 8,676 | | | | | | 11,837 | | | | | | 24,355 | | |
Corporate and restructuring costs(2) | | | | | 19,472 | | | | | | 4,217 | | | | | | 24,704 | | | | | | 14,897 | | |
Impairment of long-lived assets(3) | | | | | 3,269 | | | | | | — | | | | | | 14,912 | | | | | | 685 | | |
Income from discontinued operations | | | | | — | | | | | | — | | | | | | (27,747) | | | | | | — | | |
Other – non-cash(4) | | | | | 3,580 | | | | | | (9,285) | | | | | | 10,538 | | | | | | (34,498) | | |
Tax adjustments(5) | | | | | (2,147) | | | | | | (465) | | | | | | (17,640) | | | | | | 2,532 | | |
Adjusted Net Income | | | | | 40,040 | | | | | | 22,671 | | | | | | 146,906 | | | | | | 137,034 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net(6) | | | | | 26,597 | | | | | | 30,673 | | | | | | 77,963 | | | | | | 90,890 | | |
Other expense(7) | | | | | 266 | | | | | | — | | | | | | 730 | | | | | | — | | |
Remaining provision for income taxes | | | | | 12,316 | | | | | | 23,048 | | | | | | 42,612 | | | | | | 40,541 | | |
Adjusted Operating Income | | | | | 79,219 | | | | | | 76,392 | | | | | | 268,211 | | | | | | 268,465 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization of property and equipment | | | | | 40,032 | | | | | | 40,149 | | | | | | 117,649 | | | | | | 126,183 | | |
Amortization of customer loyalty payments | | | | | 20,062 | | | | | | 19,896 | | | | | | 64,553 | | | | | | 57,348 | | |
Adjusted EBITDA | | | | $ | 139,313 | | | | | $ | 136,437 | | | | | $ | 450,413 | | | | | $ | 451,996 | | |
|
Three Months Ended | ||||||||
March 31, | ||||||||
(in $) | 2018 | 2017 | ||||||
Income per share – diluted | $ | 0.47 | $ | 0.45 | ||||
Per share adjustments to net income to determine Adjusted Income per Share – diluted | (0.03 | ) | 0.06 | |||||
Adjusted Income per Share – diluted | $ | 0.44 | $ | 0.51 |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||
(in $) | | | 2018 | | | 2017 | | | 2018 | | | 2017 | | ||||||||||||
Income per share – diluted | | | | $ | 0.04 | | | | | $ | 0.04 | | | | | $ | 0.55 | | | | | $ | 0.76 | | |
Per share adjustments to net income to determine Adjusted Income per Share – diluted | | | | | 0.27 | | | | | | 0.14 | | | | | | 0.60 | | | | | | 0.33 | | |
Adjusted Income per Share – diluted | | | | $ | 0.31 | | | | | $ | 0.18 | | | | | $ | 1.15 | | | | | $ | 1.09 | | |
|
Three Months Ended | ||||||||
March 31, | ||||||||
(in percentages) | 2018 | 2017 | ||||||
Asia Pacific | 22 | 24 | ||||||
Europe | 37 | 33 | ||||||
Latin America and Canada | 5 | 5 | ||||||
Middle East and Africa | 12 | 13 | ||||||
International | 76 | 75 | ||||||
United States | 24 | 25 | ||||||
Travel Commerce Platform | 100 | 100 |
| | | Nine Months Ended September 30, | | |||||||||
(in percentages) | | | 2018 | | | 2017 | | ||||||
Asia Pacific | | | | | 23 | | | | | | 24 | | |
Europe | | | | | 34 | | | | | | 32 | | |
Latin America and Canada | | | | | 5 | | | | | | 5 | | |
Middle East and Africa | | | | | 13 | | | | | | 13 | | |
International | | | | | 75 | | | | | | 74 | | |
United States | | | | | 25 | | | | | | 26 | | |
Travel Commerce Platform | | | | | 100 | | | | | | 100 | | |
|
Customer
Three Months Ended March 31, 2018 Compared to Three Months Ended March 31, 2017
We have adopted new guidance on pension costs from January 1, 2018 (see Note 2—Recently Issued Accounting Pronouncements—Pension to our consolidated condensed financial statements included in this Quarterly Report on Form 10-Q). In accordance with the guidance, we have presented interest costs, expected return on plan assets and amortization of actuarial gain or loss components of net periodic pension and post-retirement benefit costs separately outside of operating income. For the three months ended March 31, 2017, we reclassified $1 million from selling, general and administrative expense to other expense within the consolidated condensed statement of operations.
Three Months Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
(in $ thousands, except share data) | 2018 | 2017 | $ | % | ||||||||||||
Net revenue | $ | 677,838 | $ | 650,763 | $ | 27,075 | 4 | |||||||||
Costs and expenses | ||||||||||||||||
Cost of revenue | 426,397 | 386,837 | 39,560 | 10 | ||||||||||||
Selling, general and administrative | 125,200 | 111,301 | 13,899 | 12 | ||||||||||||
Depreciation and amortization | 48,577 | 52,909 | (4,332 | ) | (8 | ) | ||||||||||
Total costs and expenses | 600,174 | 551,047 | 49,127 | 9 | ||||||||||||
Operating income | 77,664 | 99,716 | (22,052 | ) | (22 | ) | ||||||||||
Interest expense, net | (14,935 | ) | (30,275 | ) | 15,340 | 51 | ||||||||||
Loss on early extinguishment of debt | (27,661 | ) | — | (27,661 | ) | * | ||||||||||
Other expense | (93 | ) | (846 | ) | 753 | 89 | ||||||||||
Income before income taxes | 34,975 | 68,595 | (33,620 | ) | (49 | ) | ||||||||||
Provision for income taxes | (3,491 | ) | (12,732 | ) | 9,241 | 73 | ||||||||||
Net income from continuing operations | 31,484 | 55,863 | (24,379 | ) | (44 | ) | ||||||||||
Income from discontinued operations, net of tax | 27,747 | — | 27,747 | * | ||||||||||||
Net income | $ | 59,231 | $ | 55,863 | $ | 3,368 | 6 |
Net Revenue
On January 1, 2018, we adopted new guidance on revenue recognition applying the modified retrospective method to all contracts. Results for the three and nine months ended March 31,September 30, 2018 are presented under the new revenue recognition guidance, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under previous revenue recognition guidance. We recorded a reduction of $1 million to our accumulated deficit balance as of January 1, 2018, representing the cumulative impact of adopting the new revenue recognition guidance, which primarily relates to the timing of recognition of hotel reservations in our Beyond Air revenue. TheFor the three months ended September 30, 2018, there was an immaterial impact to net revenue for the quarter ended March 31, 2018 was a decrease of less than $1 million as a result of applying the new revenue recognition guidance (see Note 3–3—Revenue to our consolidated condensed financial statements included in this Quarterly Report on Form 10-Q).
| | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Net revenue | | | | $ | 622,585 | | | | | $ | 610,842 | | | | | $ | 11,743 | | | | | | 2 | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 400,679 | | | | | | 388,027 | | | | | | 12,652 | | | | | | 3 | | |
Selling, general and administrative | | | | | 127,538 | | | | | | 110,916 | | | | | | 16,622 | | | | | | 15 | | |
Depreciation and amortization | | | | | 50,253 | | | | | | 50,314 | | | | | | (61) | | | | | | — | | |
Total costs and expenses | | | | | 578,470 | | | | | | 549,257 | | | | | | 29,213 | | | | | | 5 | | |
Operating income | | | | | 44,115 | | | | | | 61,585 | | | | | | (17,470) | | | | | | (28) | | |
Interest expense, net | | | | | (27,772) | | | | | | (28,793) | | | | | | 1,021 | | | | | | 4 | | |
Loss on early extinguishment of debt | | | | | (38) | | | | | | (4,682) | | | | | | 4,644 | | | | | | 99 | | |
Other expense | | | | | (266) | | | | | | (846) | | | | | | 580 | | | | | | 69 | | |
Income before income taxes | | | | | 16,039 | | | | | | 27,264 | | | | | | (11,225) | | | | | | (41) | | |
Provision for income taxes | | | | | (10,169) | | | | | | (22,583) | | | | | | 12,414 | | | | | | 55 | | |
Net income | | | | $ | 5,870 | | | | | $ | 4,681 | | | | | $ | 1,189 | | | | | | 25 | | |
|
Three Months Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
(in $ thousands) | 2018 | 2017 | $ | % | ||||||||||||
Air | $ | 472,935 | $ | 474,475 | $ | (1,540 | ) | — | ||||||||
Beyond Air | 179,751 | 147,585 | 32,166 | 22 | ||||||||||||
Travel Commerce Platform | 652,686 | 622,060 | 30,626 | 5 | ||||||||||||
Technology Services | 25,152 | 28,703 | (3,551 | ) | (12 | ) | ||||||||||
Net revenue | $ | 677,838 | $ | 650,763 | $ | 27,075 | 4 |
| | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Air | | | | $ | 404,643 | | | | | $ | 417,371 | | | | | $ | (12,728) | | | | | | (3) | | |
Beyond Air | | | | | 192,968 | | | | | | 168,782 | | | | | | 24,186 | | | | | | 14 | | |
Travel Commerce Platform | | | | | 597,611 | | | | | | 586,153 | | | | | | 11,458 | | | | | | 2 | | |
Technology Services | | | | | 24,974 | | | | | | 24,689 | | | | | | 285 | | | | | | 1 | | |
Net revenue | | | | $ | 622,585 | | | | | $ | 610,842 | | | | | $ | 11,743 | | | | | | 2 | | |
|
Travel Commerce Platform
Three Months Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
2018 | 2017 | % | ||||||||||||||
Travel Commerce Platform RevPas (in $) | $ | 7.07 | $ | 6.67 | $ | 0.40 | 6 | |||||||||
Reported Segments (in thousands) | 92,321 | 93,197 | (876 | ) | (1 | ) |
| | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||
| | | 2018 | | | 2017 | | | | | | | | | % | | |||||||||
Travel Commerce Platform RevPas (in $) | | | | $ | 7.33 | | | | | $ | 6.86 | | | | | $ | 0.47 | | | | | | 7 | | |
Reported Segments (in thousands) | | | | | 81,579 | | | | | | 85,397 | | | | | | (3,818) | | | | | | (4) | | |
September 30, 2018 compared to the three months ended September 30, 2017.
Three Months Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
(in $ thousands) | 2018 | 2017 | $ | % | ||||||||||||
Asia Pacific | $ | 141,551 | $ | 151,015 | $ | (9,464 | ) | (6 | ) | |||||||
Europe | 244,442 | 202,416 | 42,026 | 21 | ||||||||||||
Latin America and Canada | 29,859 | 28,782 | 1,077 | 4 | ||||||||||||
Middle East and Africa | 79,106 | 83,553 | (4,447 | ) | (5 | ) | ||||||||||
International | 494,958 | 465,766 | 29,192 | 6 | ||||||||||||
United States | 157,728 | 156,294 | 1,434 | 1 | ||||||||||||
Travel Commerce Platform | $ | 652,686 | $ | 622,060 | $ | 30,626 | 5 |
| | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Asia Pacific | | | | $ | 140,186 | | | | | $ | 145,008 | | | | | $ | (4,822) | | | | | | (3) | | |
Europe | | | | | 202,300 | | | | | | 185,801 | | | | | | 16,499 | | | | | | 9 | | |
Latin America and Canada | | | | | 28,202 | | | | | | 27,563 | | | | | | 639 | | | | | | 2 | | |
Middle East and Africa | | | | | 78,824 | | | | | | 77,494 | | | | | | 1,330 | | | | | | 2 | | |
International | | | | | 449,512 | | | | | | 435,866 | | | | | | 13,646 | | | | | | 3 | | |
United States | | | | | 148,099 | | | | | | 150,287 | | | | | | (2,188) | | | | | | (1) | | |
Travel Commerce Platform | | | | $ | 597,611 | | | | | $ | 586,153 | | | | | $ | 11,458 | | | | | | 2 | | |
|
Segments(in thousands) | RevPas(in $) | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
March 31, | Change | March 31, | Change | |||||||||||||||||||||||||||||
2018 | 2017 | % | 2018 | 2017 | $ | % | ||||||||||||||||||||||||||
Asia Pacific | 16,168 | 19,208 | (3,040 | ) | (16 | ) | $ | 8.76 | $ | 7.86 | 0.90 | 11 | ||||||||||||||||||||
Europe | 25,647 | 23,497 | 2,150 | 9 | $ | 9.53 | $ | 8.61 | 0.92 | 11 | ||||||||||||||||||||||
Latin America and Canada | 4,710 | 4,626 | 84 | 2 | $ | 6.34 | $ | 6.22 | 0.12 | 2 | ||||||||||||||||||||||
Middle East and Africa | 9,628 | 9,476 | 152 | 2 | $ | 8.22 | $ | 8.82 | (0.60 | ) | (7 | ) | ||||||||||||||||||||
International | 56,153 | 56,807 | (654 | ) | (1 | ) | $ | 8.81 | $ | 8.20 | 0.61 | 8 | ||||||||||||||||||||
United States | 36,168 | 36,390 | (222 | ) | (1 | ) | $ | 4.36 | $ | 4.30 | 0.06 | 1 | ||||||||||||||||||||
Travel Commerce Platform | 92,321 | 93,197 | (876 | ) | (1 | ) | $ | 7.07 | $ | 6.67 | 0.40 | 6 |
| | | Segments (in thousands) | | | RevPas (in $) | | ||||||||||||||||||||||||||||||||||||||||||
| | | Three Months Ended September 30, | | | Change | | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | | | | | | | % | | | 2018 | | | 2017 | | | $ | | | % | | |||||||||||||||||||||
Asia Pacific | | | | | 16,764 | | | | | | 17,807 | | | | | | (1,043) | | | | | | (6) | | | | | $ | 8.36 | | | | | $ | 8.14 | | | | | | 0.22 | | | | | | 3 | | |
Europe | | | | | 18,658 | | | | | | 20,117 | | | | | | (1,459) | | | | | | (7) | | | | | $ | 10.84 | | | | | $ | 9.24 | | | | | | 1.60 | | | | | | 17 | | |
Latin America and Canada | | | | | 4,793 | | | | | | 4,706 | | | | | | 87 | | | | | | 2 | | | | | $ | 5.88 | | | | | $ | 5.86 | | | | | | 0.02 | | | | | | — | | |
Middle East and Africa | | | | | 9,180 | | | | | | 9,354 | | | | | | (174) | | | | | | (2) | | | | | $ | 8.59 | | | | | $ | 8.28 | | | | | | 0.31 | | | | | | 4 | | |
International | | | | | 49,395 | | | | | | 51,984 | | | | | | (2,589) | | | | | | (5) | | | | | $ | 9.10 | | | | | $ | 8.38 | | | | | | 0.72 | | | | | | 9 | | |
United States | | | | | 32,184 | | | | | | 33,413 | | | | | | (1,229) | | | | | | (4) | | | | | $ | 4.60 | | | | | $ | 4.50 | | | | | | 0.10 | | | | | | 2 | | |
Travel Commerce Platform | | | | | 81,579 | | | | | | 85,397 | | | | | | (3,818) | | | | | | (4) | | | | | $ | 7.33 | | | | | $ | 6.86 | | | | | | 0.47 | | | | | | 7 | | |
|
International
Our International Travel Commerce Platform revenue increased by $29$14 million, or 6%3%, due todriven by an 8%increase in Beyond Air revenue that was offset by a decrease in Air revenue. The increase in RevPas offset by a 1% decrease in Reported Segments. The increase in RevPasof 9% was a result of growth in Beyond Air, driven by an increase in payment solutions, in Beyond Air, partially offset by a decreasedecline in Air. The decrease inthe remainder of the Beyond Air was mainlyportfolio. Reported Segments decreased due to the loss of a large travel agency in the Pacific region mix and a $9 million recognition of revenue in 2017 in respect of revenue deferred in previous years, partially offset by improved pricing.other specific travel agency headwinds. Our International Travel Commerce Platform revenue as a percentage of Travel Commerce Platform revenue was 76% for the three months ended March 31, 2018 compared to 75% for the three months ended March 31,September 30, 2018 compared to 74% for the three months ended September 30, 2017.
Air offset by a decrease in Air revenue.
Kingdom.
United States
Revenue in the United States increased marginally by $1 million.
Technology Services
Technology Services revenue decreased $4 million, or 12%, primarily due to the sale of IGT Solutions Private Ltd (“IGTS”) in 2017.
1%.
Three Months Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
(in $ thousands) | 2018 | 2017 | $ | % | ||||||||||||
Commissions | $ | 349,951 | $ | 302,789 | $ | 47,162 | 16 | |||||||||
Technology costs | 76,446 | 84,048 | (7,602 | ) | (9 | ) | ||||||||||
Cost of revenue | $ | 426,397 | $ | 386,837 | $ | 39,560 | 10 |
| | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Commissions | | | | $ | 327,516 | | | | | $ | 306,971 | | | | | $ | 20,545 | | | | | | 7 | | |
Technology costs | | | | | 73,163 | | | | | | 81,056 | | | | | | (7,893) | | | | | | (10) | | |
Cost of revenue | | | | $ | 400,679 | | | | | $ | 388,027 | | | | | $ | 12,652 | | | | | | 3 | | |
|
Selling, General and Administrative (SG&A)
Three Months Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
(in $ thousands) | 2018 | 2017 | $ | % | ||||||||||||
Workforce | $ | 103,333 | $ | 84,529 | $ | 18,804 | 22 | |||||||||
Non-workforce | 16,510 | 21,182 | (4,672 | ) | (22 | ) | ||||||||||
Sub-total | 119,843 | 105,711 | 14,132 | 13 | ||||||||||||
Non-core corporate costs | 5,357 | 5,590 | (233 | ) | (4 | ) | ||||||||||
SG&A | $ | 125,200 | $ | 111,301 | $ | 13,899 | 12 |
| | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Workforce | | | | $ | 83,585 | | | | | $ | 90,559 | | | | | $ | (6,974) | | | | | | (8) | | |
Non-workforce | | | | | 22,327 | | | | | | 14,869 | | | | | | 7,458 | | | | | | 50 | | |
Sub-total | | | | | 105,912 | | | | | | 105,428 | | | | | | 484 | | | | | | — | | |
Non-core corporate costs | | | | | 21,626 | | | | | | 5,488 | | | | | | 16,138 | | | | | | * | | |
SG&A | | | | $ | 127,538 | | | | | $ | 110,916 | | | | | $ | 16,622 | | | | | | 15 | | |
|
losses and an increase in general administration costs.
contracts offset by $9 million of lower equity-based compensation and related taxes.
Three Months Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
(in $ thousands) | 2018 | 2017 | $ | % | ||||||||||||
Depreciation on property and equipment | $ | 38,411 | $ | 42,517 | $ | (4,106 | ) | (10 | ) | |||||||
Amortization of acquired intangible assets | 10,166 | 10,392 | (226 | ) | (2 | ) | ||||||||||
Total depreciation and amortization | $ | 48,577 | $ | 52,909 | $ | (4,332 | ) | (8 | ) |
| | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Depreciation on property and equipment | | | | $ | 40,088 | | | | | $ | 40,149 | | | | | $ | (61) | | | | | | — | | |
Amortization of acquired intangible assets | | | | | 10,165 | | | | | | 10,165 | | | | | | — | | | | | | — | | |
Total depreciation and amortization | | | | $ | 50,253 | | | | | $ | 50,314 | | | | | $ | (61) | | | | | | — | | |
|
stable at $50 million.
In March 2018,
Provision for Income Taxes
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Net revenue | | | | $ | 1,962,431 | | | | | $ | 1,873,712 | | | | | $ | 88,719 | | | | | | 5 | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 1,254,868 | | | | | | 1,144,572 | | | | | | 110,296 | | | | | | 10 | | |
Selling, general and administrative | | | | | 395,093 | | | | | | 336,272 | | | | | | 58,821 | | | | | | 17 | | |
Depreciation and amortization | | | | | 148,398 | | | | | | 156,871 | | | | | | (8,473) | | | | | | (5) | | |
Total costs and expenses | | | | | 1,798,359 | | | | | | 1,637,715 | | | | | | 160,644 | | | | | | 10 | | |
Operating income | | | | | 164,072 | | | | | | 235,997 | | | | | | (71,925) | | | | | | (30) | | |
Interest expense, net | | | | | (66,312) | | | | | | (92,011) | | | | | | 25,699 | | | | | | 28 | | |
Loss on early extinguishment of debt | | | | | (27,699) | | | | | | (4,682) | | | | | | (23,017) | | | | | | * | | |
Gain on sale of a subsidiary | | | | | — | | | | | | 1,217 | | | | | | (1,217) | | | | | | (100) | | |
Other expense | | | | | (730) | | | | | | (2,538) | | | | | | 1,808 | | | | | | 71 | | |
Income before income taxes | | | | | 69,331 | | | | | | 137,983 | | | | | | (68,652) | | | | | | (50) | | |
Provision for income taxes | | | | | (24,972) | | | | | | (43,073) | | | | | | 18,101 | | | | | | 42 | | |
Net income from continuing operations | | | | | 44,359 | | | | | | 94,910 | | | | | | (50,551) | | | | | | (53) | | |
Income from discontinued operations, net of tax | | | | | 27,747 | | | | | | — | | | | | | 27,747 | | | | | | * | | |
Net income | | | | $ | 72,106 | | | | | $ | 94,910 | | | | | $ | (22,804) | | | | | | (24) | | |
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Air | | | | $ | 1,321,525 | | | | | $ | 1,315,500 | | | | | $ | 6,025 | | | | | | — | | |
Beyond Air | | | | | 566,740 | | | | | | 476,474 | | | | | | 90,266 | | | | | | 19 | | |
Travel Commerce Platform | | | | | 1,888,265 | | | | | | 1,791,974 | | | | | | 96,291 | | | | | | 5 | | |
Technology Services | | | | | 74,166 | | | | | | 81,738 | | | | | | (7,572) | | | | | | (9) | | |
Net revenue | | | | $ | 1,962,431 | | | | | $ | 1,873,712 | | | | | $ | 88,719 | | | | | | 5 | | |
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||
| | | 2018 | | | 2017 | | | | | | | | | % | | |||||||||
Travel Commerce Platform RevPas (in $) | | | | $ | 7.24 | | | | | $ | 6.76 | | | | | $ | 0.48 | | | | | | 7 | | |
Reported Segments (in thousands) | | | | | 260,831 | | | | | | 264,975 | | | | | | (4,144) | | | | | | (2) | | |
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Asia Pacific | | | | $ | 426,728 | | | | | $ | 437,748 | | | | | $ | (11,020) | | | | | | (3) | | |
Europe | | | | | 670,082 | | | | | | 568,811 | | | | | | 101,271 | | | | | | 18 | | |
Latin America and Canada | | | | | 87,517 | | | | | | 83,919 | | | | | | 3,598 | | | | | | 4 | | |
Middle East and Africa | | | | | 239,593 | | | | | | 238,959 | | | | | | 634 | | | | | | — | | |
International | | | | | 1,423,920 | | | | | | 1,329,437 | | | | | | 94,483 | | | | | | 7 | | |
United States | | | | | 464,345 | | | | | | 462,537 | | | | | | 1,808 | | | | | | — | | |
Travel Commerce Platform | | | | $ | 1,888,265 | | | | | $ | 1,791,974 | | | | | $ | 96,291 | | | | | | 5 | | |
|
| | | Segments (in thousands) | | | RevPas (in $) | | ||||||||||||||||||||||||||||||||||||||||||
| | | Nine Months Ended September 30, | | | Change | | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | | | | | | | % | | | 2018 | | | 2017 | | | $ | | | % | | |||||||||||||||||||||
Asia Pacific | | | | | 49,172 | | | | | | 54,712 | | | | | | (5,540) | | | | | | (10) | | | | | $ | 8.68 | | | | | $ | 8.00 | | | | | | 0.68 | | | | | | 8 | | |
Europe | | | | | 65,537 | | | | | | 63,478 | | | | | | 2,059 | | | | | | 3 | | | | | $ | 10.22 | | | | | $ | 8.96 | | | | | | 1.26 | | | | | | 14 | | |
Latin America and Canada | | | | | 14,231 | | | | | | 13,862 | | | | | | 369 | | | | | | 3 | | | | | $ | 6.15 | | | | | $ | 6.05 | | | | | | 0.10 | | | | | | 2 | | |
Middle East and Africa | | | | | 28,300 | | | | | | 28,271 | | | | | | 29 | | | | | | — | | | | | $ | 8.47 | | | | | $ | 8.45 | | | | | | 0.02 | | | | | | — | | |
International | | | | | 157,240 | | | | | | 160,323 | | | | | | (3,083) | | | | | | (2) | | | | | $ | 9.06 | | | | | $ | 8.29 | | | | | | 0.77 | | | | | | 9 | | |
United States | | | | | 103,591 | | | | | | 104,652 | | | | | | (1,061) | | | | | | (1) | | | | | $ | 4.48 | | | | | $ | 4.42 | | | | | | 0.06 | | | | | | 1 | | |
Travel Commerce Platform | | | | | 260,831 | | | | | | 264,975 | | | | | | (4,144) | | | | | | (2) | | | | | $ | 7.24 | | | | | $ | 6.76 | | | | | | 0.48 | | | | | | 7 | | |
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Commissions | | | | $ | 1,026,602 | | | | | $ | 899,224 | | | | | $ | 127,378 | | | | | | 14 | | |
Technology costs | | | | | 228,266 | | | | | | 245,348 | | | | | | (17,082) | | | | | | (7) | | |
Cost of revenue | | | | $ | 1,254,868 | | | | | $ | 1,144,572 | | | | | $ | 110,296 | | | | | | 10 | | |
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Workforce | | | | $ | 276,572 | | | | | $ | 267,699 | | | | | $ | 8,873 | | | | | | 3 | | |
Non-workforce | | | | | 58,753 | | | | | | 56,644 | | | | | | 2,109 | | | | | | 4 | | |
Sub-total | | | | | 335,325 | | | | | | 324,343 | | | | | | 10,982 | | | | | | 3 | | |
Non-core corporate costs | | | | | 59,768 | | | | | | 11,929 | | | | | | 47,839 | | | | | | * | | |
SG&A | | | | $ | 395,093 | | | | | $ | 336,272 | | | | | $ | 58,821 | | | | | | 17 | | |
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | | % | | ||||||||||||
Depreciation on property and equipment | | | | $ | 117,901 | | | | | $ | 126,183 | | | | | $ | (8,282) | | | | | | (7) | | |
Amortization of acquired intangible assets | | | | | 30,497 | | | | | | 30,688 | | | | | | (191) | | | | | | (1) | | |
Total depreciation and amortization | | | | $ | 148,398 | | | | | $ | 156,871 | | | | | $ | (8,473) | | | | | | (5) | | |
|
March 31, | ||||
(in $ thousands) | 2018 | |||
Cash and cash equivalents | $ | 127,165 | ||
Revolving credit facility availability | 141,658 |
(in $ thousands) | | | September 30, 2018 | | |||
Cash and cash equivalents | | | | $ | 200,333 | | |
Revolving credit facility availability | | | | | 145,400 | | |
The table below sets out our working capital as of March 31,September 30, 2018 and December 31, 2017, as monitored by management, which is then reconciled to our working capital as presented in our consolidated condensed balance sheets:
Asset (Liability) | ||||||||||||
March 31, | December 31, | |||||||||||
(in $ thousands) | 2018 | 2017 | Change | |||||||||
Accounts receivable, net | $ | 270,663 | $ | 206,524 | $ | 64,139 | ||||||
Accrued commissions and incentives | (356,856 | ) | (282,954 | ) | (73,902 | ) | ||||||
Deferred revenue and prepaid incentives, net | (39,447 | ) | (31,419 | ) | (8,028 | ) | ||||||
Cash and cash equivalents | 127,165 | 122,039 | 5,126 | |||||||||
Accounts payable and employee related | (143,477 | ) | (145,140 | ) | 1,663 | |||||||
Accrued interest | (4,131 | ) | (12,010 | ) | 7,879 | |||||||
Current portion of long-term debt | (54,089 | ) | (64,291 | ) | 10,202 | |||||||
Taxes | (2,804 | ) | (2,823 | ) | 19 | |||||||
Other assets, net | 32,324 | 1,724 | 30,600 | |||||||||
Working Capital | $ | (170,652 | ) | $ | (208,350 | ) | $ | 37,698 | ||||
Consolidated Condensed Balance Sheets: | ||||||||||||
Total current assets | $ | 540,354 | $ | 438,287 | $ | 102,067 | ||||||
Total current liabilities | (711,006 | ) | (646,637 | ) | (64,369 | ) | ||||||
Working Capital | $ | (170,652 | ) | $ | (208,350 | ) | $ | 37,698 |
| | | Asset (Liability) | | | ||||||||||||||
(in $ thousands) | | | September 30, 2018 | | | December 31, 2017 | | | Change | | |||||||||
Accounts receivable, net | | | | $ | 248,635 | | | | | $ | 206,524 | | | | | $ | 42,111 | | |
Accrued commissions and incentives | | | | | (328,361) | | | | | | (282,954) | | | | | | (45,407) | | |
Deferred revenue and prepaid incentives, net | | | | | (46,610) | | | | | | (31,419) | | | | | | (15,191) | | |
Cash and cash equivalents | | | | | 200,333 | | | | | | 122,039 | | | | | | 78,294 | | |
Accounts payable and employee related | | | | | (155,384) | | | | | | (145,140) | | | | | | (10,244) | | |
Accrued interest | | | | | (9,442) | | | | | | (12,010) | | | | | | 2,568 | | |
Current portion of long-term debt | | | | | (58,377) | | | | | | (64,291) | | | | | | 5,914 | | |
Taxes | | | | | 3,647 | | | | | | (2,823) | | | | | | 6,470 | | |
Other assets, net | | | | | 15,408 | | | | | | 1,724 | | | | | | 13,684 | | |
Working Capital | | | | $ | (130,151) | | | | | $ | (208,350) | | | | | $ | 78,199 | | |
Consolidated Condensed Balance Sheets: | | | | | | | | | | | | | | | | | | | |
Total current assets | | | | $ | 574,580 | | | | | $ | 438,287 | | | | | $ | 136,293 | | |
Total current liabilities | | | | | (704,731) | | | | | | (646,637) | | | | | | (58,094) | | |
Working Capital | | | | $ | (130,151) | | | | | $ | (208,350) | | | | | $ | 78,199 | | |
|
revenue and prepaid incentives, net, and a $10 million increase in accounts payable and employee related.
March 31, | December 31, | |||||||||||
2018 | 2017 | Change | ||||||||||
Accounts receivable, net(in $ thousands) | $ | 270,663 | $ | 206,524 | $ | 64,139 | ||||||
Accounts receivable, net – Days Sales Outstanding (“DSO”) | 38 | 37 | 1 |
| | | September 30, 2018 | | | December 31, 2017 | | | Change | | |||||||||
Accounts receivable, net (in $ thousands) | | | | $ | 248,635 | | | | | $ | 206,524 | | | | | $ | 42,111 | | |
Accounts receivable, net – Days Sales Outstanding (“DSO”) | | | | | 37 | | | | | | 37 | | | | | | — | | |
Cash Flows
Three Months Ended | ||||||||||||
March 31, | Change | |||||||||||
(in $ thousands) | 2018 | 2017 | $ | |||||||||
Cash provided by (used in): | ||||||||||||
Operating activities of continuing operations | $ | 83,097 | $ | 95,022 | $ | (11,925 | ) | |||||
Investing activities | (36,663 | ) | (23,609 | ) | (13,054 | ) | ||||||
Financing activities | (41,705 | ) | (24,251 | ) | (17,454 | ) | ||||||
Effect of exchange rate changes | 397 | 307 | 90 | |||||||||
Net increase in cash and cash equivalents | $ | 5,126 | $ | 47,469 | $ | (42,343 | ) |
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | |||||||||
Cash provided by (used in): | | | | | | | | | | | | | | | | | | | |
Operating activities | | | | $ | 285,435 | | | | | $ | 274,342 | | | | | $ | 11,093 | | |
Investing activities | | | | | (109,236) | | | | | | (82,625) | | | | | | (26,611) | | |
Financing activities | | | | | (93,306) | | | | | | (128,052) | | | | | | 34,746 | | |
Effect of exchange rate changes | | | | | (1,126) | | | | | | 1,043 | | | | | | (2,169) | | |
Net increase in cash, cash equivalents and restricted cash | | | | $ | 81,767 | | | | | $ | 64,708 | | | | | $ | 17,059 | | |
|
During the nine months ended September 30, 2017, cash used in investing activities of $83 million was due to $79 million of cash used in the purchase of property and equipment and a $3 million net cash outflow related to the sale of IGTS.
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
(in $ thousands) | 2018 | 2017 | Change | |||||||||
Cash additions to software developed for internal use | $ | 31,352 | $ | 17,882 | $ | 13,470 | ||||||
Cash additions to computer equipment and other | 5,311 | 5,727 | 416 | |||||||||
Property and equipment additions | $ | 36,663 | $ | 23,609 | $ | 13,054 |
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||
(in $ thousands) | | | 2018 | | | 2017 | | | $ | | |||||||||
Cash additions to software developed for internal use | | | | $ | 96,934 | | | | | $ | 62,459 | | | | | $ | 34,475 | | |
Cash additions to computer equipment and other | | | | | 12,302 | | | | | | 16,733 | | | | | | (4,431) | | |
Property and equipment additions | | | | $ | 109,236 | | | | | $ | 79,192 | | | | | $ | 30,044 | | |
|
Free Cash Flow is a non-GAAP measure and may not be comparable to similarly named measures used by other companies. This measure has limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent cash flow for discretionary expenditures. This measure should not be considered as a measure of liquidity or cash flows from operations as determined under U.S. GAAP. This measure is not measurement of our financial performance under U.S. GAAP and should not be considered in isolation or as alternative to net income (loss) or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of liquidity.
Three Months Ended | ||||||||
March 31, | ||||||||
(in $ thousands) | 2018 | 2017 | ||||||
Net cash provided by operating activities | $ | 83,097 | $ | 95,022 | ||||
Property and equipment additions | (36,663 | ) | (23,609 | ) | ||||
Free Cash Flow | $ | 46,434 | $ | 71,413 |
| | | Nine Months Ended September 30, | | |||||||||
(in $ thousands) | | | 2018 | | | 2017 | | ||||||
Net cash provided by operating activities | | | | $ | 285,435 | | | | | $ | 274,342 | | |
Less: capital expenditures on property and equipment additions | | | | | (109,236) | | | | | | (79,192) | | |
Free Cash Flow | | | | $ | 176,199 | | | | | $ | 195,150 | | |
|
Interest | March 31, | December 31, | ||||||||||
(in $ thousands) | rate | Maturity | 2018 | 2017 | ||||||||
Senior Secured Credit Agreement | ||||||||||||
Term loans – (2018 Credit Agreement)(1) | L+2.50% | March 2025 | $ | 1,385,934 | $ | — | ||||||
Term loans – (2014 Credit Agreement)(2) | L+2.75% | September 2021 | — | 2,124,439 | ||||||||
Revolver borrowings – (2018 Credit Agreement) | L+2.25% | September 2022 | — | — | ||||||||
Revolver borrowings – (2014 Credit Agreement) | L+2.50% | September 2022 | — | — | ||||||||
Senior Secured Notes | ||||||||||||
Senior Secured Notes (3) | 6.00% | March 2026 | 737,404 | — | ||||||||
Capital leases and other indebtedness | 99,786 | 105,574 | ||||||||||
Total debt | 2,223,124 | 2,230,013 | ||||||||||
Less: cash and cash equivalents | (127,165 | ) | (122,039 | ) | ||||||||
Net Debt(4) | $ | 2,095,959 | $ | 2,107,974 |
(in $ thousands) | | | Interest rate | | | Maturity | | | September 30, 2018 | | | December 31, 2017 | | ||||||
Senior Secured Credit Agreement | | | | | | | | | | | | | | | | | | | |
Term loans – (2018 Credit Agreement)(1) | | | L+2.50% | | | March 2025 | | | | $ | 1,379,511 | | | | | $ | — | | |
Term loans – (2014 Credit Agreement)(2) | | | L+2.75% | | | September 2021 | | | | | — | | | | | | 2,124,439 | | |
Revolver borrowings – (2018 Credit Agreement) | | | L+2.25% | | | September 2022 | | | | | — | | | | | | — | | |
Revolver borrowings – (2014 Credit Agreement) | | | L+2.50% | | | September 2022 | | | | | — | | | | | | — | | |
Senior Secured Notes | | | | | | | | | | | | | | | | | | | |
Senior Secured Notes(3) | | | 6.00% | | | March 2026 | | | | | 737,881 | | | | | | — | | |
Capital leases and other indebtedness | | | | | | | | | | | 147,156 | | | | | | 105,574 | | |
Total debt | | | | | | | | | | | 2,264,548 | | | | | | 2,230,013 | | |
Less: cash, cash equivalents and restricted cash | | | | | | | | | | | (203,806) | | | | | | (122,039) | | |
Net Debt(4) | | | | | | | | | | $ | 2,060,742 | | | | | $ | 2,107,974 | | |
|
Borrowings under the 2018 Credit Agreement are subject to amortization and prepayment requirements. In addition, the 2018 Credit Agreement and the Indenture governing the senior secured notes contain various covenants, events of default and other provisions, including, under certain circumstances, a leverage ratio requirement under the 2018 Credit Agreement.
Average | ||||||
Notional Amount | Interest | |||||
($ in thousands) | Period | Rate | ||||
1,400,000 | February 2017 to February 2019 | 1.4010% | ||||
1,200,000 | February 2019 to February 2020 | 2.1906% | ||||
400,000 | February 2020 to February 2021 | 2.1925% |
Notional Amount ($ in thousands) | | | Period | | | Rate Average Interest | | |||
1,400,000 | | | February 2017 to February 2019 | | | | | 1.4010% | | |
1,200,000 | | | February 2019 to February 2020 | | | | | 2.1906% | | |
400,000 | | | February 2020 to February 2021 | | | | | 2.1925% | | |
200,000 | | | February 2021 to February 2022 | | | | | 2.9913% | | |
Foreign Currency Risk
Year Ending March 31, | ||||||||||||||||||||||||||||
(in $ thousands) | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
Term loans | $ | 10,500 | $ | 14,000 | $ | 14,000 | $ | 14,000 | $ | 14,000 | $ | 1,333,500 | $ | 1,400,000 | ||||||||||||||
Senior secured notes | — | — | — | — | — | 745,000 | 745,000 | |||||||||||||||||||||
Capital leases and other indebtedness | 43,589 | 29,951 | 16,638 | 8,260 | 1,348 | — | 99,786 | |||||||||||||||||||||
Interest payments(1) | 74,179 | 107,233 | 106,943 | 105,621 | 104,857 | 254,770 | 753,603 | |||||||||||||||||||||
Total | $ | 128,268 | $ | 151,184 | $ | 137,581 | $ | 127,881 | $ | 120,205 | $ | 2,333,270 | $ | 2,998,389 |
| | | Year Ending September 30, | | |||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | | 2019 | | | 2020 | | | 2021 | | | 2022 | | | 2023 | | | Thereafter | | | Total | | |||||||||||||||||||||
Term loans | | | | $ | 14,000 | | | | | $ | 14,000 | | | | | $ | 14,000 | | | | | $ | 14,000 | | | | | $ | 14,000 | | | | | $ | 1,322,500 | | | | | $ | 1,392,500 | | |
Senior secured notes | | | | | — | | | | | | — | | | | | | — | | | | | | — | | ��� | | | | — | | | | | | 745,000 | | | | | | 745,000 | | |
Capital leases and other indebtedness | | | | | 44,378 | | | | | | 42,198 | | | | | | 36,038 | | | | | | 23,321 | | | | | | — | | | | | | 1,221 | | | | | | 147,156 | | |
Interest payments(1) | | | | | 111,037 | | | | | | 115,336 | | | | | | 114,460 | | | | | | 112,000 | | | | | | 109,907 | | | | | | 213,277 | | | | | | 776,017 | | |
Total | | | | $ | 169,415 | | | | | $ | 171,534 | | | | | $ | 164,498 | | | | | $ | 149,321 | | | | | $ | 123,907 | | | | | $ | 2,281,998 | | | | | $ | 3,060,673 | | |
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Consumer Antitrust Class Action
On July 14, 2015 and July 17, 2015, approximately 24 plaintiffs filed purported class action lawsuits against us, Amadeus and Sabre in the United States District Court for the Southern District of New York (Gordon et al. v. Amadeus IT Group, S.A et al.). A consolidated, amended complaint was filed on October 2, 2015 (the “Amended Complaint”). The Amended Complaint alleged violations of the Sherman Act, state antitrust laws and state consumer protection laws by defendants beginning in 2006. In particular, the plaintiffs claimed there was a conspiracy among us and the other defendants to impose contract terms on airlines, which the plaintiffs allege had the effect of maintaining higher fees and restricting competition. On November 7, 2017, we entered into a settlement agreement with the plaintiffs, which received final approval by the court on April 23, 2018. The settlement resolved all pending claims against us in connection with the case, and the court dismissed the Amended Complaint in full, with prejudice, on April 23, 2018 and closed the case as of that date.
Other than as set forth above, there
| | | | TRAVELPORT WORLDWIDE LIMITED | |
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Date: | | By: /s/ Bernard Bot | |||
Executive Vice President and Chief Financial Officer | | ||||
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Date: | | By: /s/Antonios Basoukeas Antonios Basoukeas | |||
Chief Accounting Officer |
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