| Bermuda | | | 98-0505105 | |
| (State or other jurisdiction of incorporation or organization) | | | (I.R.S. Employer Identification Number) | |
| Large accelerated filer ☒ | | | Accelerated filer ☐ | | | Non-accelerated filer | | | Smaller reporting company ☐ | | ||
| | | | (Do not check if a smaller reporting company) | | |
| | | Page | | |||
PART I. FINANCIAL INFORMATION | | | |||||
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PART II. OTHER INFORMATION | | | |||||
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(in $ millions, except share data) | | Three Months Ended September 30, 2015 | | Three Months Ended September 30, 2014 | | Nine Months Ended September 30, 2015 | | Nine Months Ended September 30, 2014 | | |||||||||||||||||||||||||||||
(in $ thousands, except share data) | | Three Months Ended March 31, 2016 | | Three Months Ended March 31, 2015 | | |||||||||||||||||||||||||||||||||
Net revenue | | | $ | 560 | | | | $ | 529 | | | | $ | 1,686 | | | | $ | 1,652 | | | | | $ | 609,263 | | | | $ | 572,128 | | | ||||||
Costs and expenses | | | | | ||||||||||||||||||||||||||||||||||
Cost of revenue | | | | 336 | | | | | 320 | | | | | 1,020 | | | | | 1,010 | | | | | | 362,677 | | | | | 349,231 | | | ||||||
Selling, general and administrative | | | | 114 | | | | | 130 | | | | | 340 | | | | | 315 | | | | | | 114,477 | | | | | 128,120 | | | ||||||
Depreciation and amortization | | | | 56 | | | | | 58 | | | | | 175 | | | | | 171 | | | | | | 52,241 | | | | | 61,028 | | | ||||||
Total costs and expenses | | | | 506 | | | | | 508 | | | | | 1,535 | | | | | 1,496 | | | | | | 529,395 | | | | | 538,379 | | | ||||||
Operating income | | | | 54 | | | | | 21 | | | | | 151 | | | | | 156 | | | | | | 79,868 | | | | | 33,749 | | | ||||||
Interest expense, net | | | | (40) | | | | | (67) | | | | | (118) | | | | | (237) | | | | | | (54,895) | | | | | (39,389) | | | ||||||
Loss on early extinguishment of debt | | | | — | | | | | (94) | | | | | — | | | | | (108) | | | |||||||||||||||||
Gain on sale of shares of Orbitz Worldwide | | | | — | | | | | 304 | | | | | 6 | | | | | 356 | | | | | | — | | | | | 6,271 | | | ||||||
Income before income taxes and share of (losses) earnings in equity method investments | | | | 14 | | | | | 164 | | | | | 39 | | | | | 167 | | | |||||||||||||||||
Income before income taxes and share of earnings in equity method investment | | | | 24,973 | | | | | 631 | | | |||||||||||||||||||||||||||
Provision for income taxes | | | | (8) | | | | | (11) | | | | | (24) | | | | | (33) | | | | | | (7,792) | | | | | (7,758) | | | ||||||
Share of (losses) earnings in equity method investments | | | | (1) | | | | | 2 | | | | | (1) | | | | | (1) | | | |||||||||||||||||
Net income | | | | 5 | | | | | 155 | | | | | 14 | | | | | 133 | | | |||||||||||||||||
Share of earnings in equity method investment | | | | — | | | | | 19 | | | |||||||||||||||||||||||||||
Net income (loss) | | | | 17,181 | | | | | (7,108) | | | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest in subsidiaries | | | | (1) | | | | | (1) | | | | | (3) | | | | | (4) | | | | | | (596) | | | | | (1,033) | | | ||||||
Net income attributable to the Company | | | $ | 4 | | | | $ | 154 | | | | $ | 11 | | | | $ | 129 | | | |||||||||||||||||
Income per share – Basic: | | | ||||||||||||||||||||||||||||||||||||
Income per share | | | $ | 0.03 | | | | $ | 1.75 | | | | $ | 0.09 | | | | $ | 1.75 | | | |||||||||||||||||
Net income (loss) attributable to the Company | | | $ | 16,585 | | | | $ | (8,141) | | | |||||||||||||||||||||||||||
Income (loss) per share – Basic: | | | ||||||||||||||||||||||||||||||||||||
Income (loss) per share | | | $ | 0.13 | | | | $ | (0.07) | | | |||||||||||||||||||||||||||
Weighted average common shares outstanding – Basic | | | | 122,495,392 | | | | | 88,254,078 | | | | | 122,062,715 | | | | | 73,701,371 | | | | | | 123,718,311 | | | | | 121,411,360 | | | ||||||
Income per share – Diluted: | | | ||||||||||||||||||||||||||||||||||||
Income per share | | | $ | 0.03 | | | | $ | 1.71 | | | | $ | 0.09 | | | | $ | 1.70 | | | |||||||||||||||||
Income (loss) per share – Diluted: | | | ||||||||||||||||||||||||||||||||||||
Income (loss) per share | | | $ | 0.13 | | | | $ | (0.07) | | | |||||||||||||||||||||||||||
Weighted average common shares outstanding – Diluted | | | | 122,724,141 | | | | | 90,464,651 | | | | | 122,563,359 | | | | | 76,073,381 | | | | | | 123,778,407 | | | | | 121,411,360 | | | ||||||
Cash dividends declared per Common Share | | | $ | 0.075 | | | | $ | — | | | | $ | 0.225 | | | | $ | — | | | |||||||||||||||||
Cash dividends declared per common share | | | $ | 0.075 | | | | $ | 0.075 | | |
(in $ millions) | | Three Months Ended September 30, 2015 | | Three Months Ended September 30, 2014 | | Nine Months Ended September 30, 2015 | | Nine Months Ended September 30, 2014 | | |||||||||||||||||||||||||||||
Net income | | | $ | 5 | | | | $ | 155 | | | | $ | 14 | | | | $ | 133 | | | |||||||||||||||||
Other comprehensive loss, net of tax: | | | ||||||||||||||||||||||||||||||||||||
(in $ thousands) | | Three Months Ended March 31, 2016 | | Three Months Ended March 31, 2015 | | |||||||||||||||||||||||||||||||||
Net income (loss) | | | $ | 17,181 | | | | $ | (7,108) | | | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | | | ||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | | | | (3) | | | | | (7) | | | | | (9) | | | | | (5) | | | | | | 7,459 | | | | | (5,836) | | | ||||||
Changes in gain on available-for-sale securities, net of tax | | | | — | | | | | 6 | | | | | (6) | | | | | 6 | | | | | | — | | | | | (6,376) | | | ||||||
Changes in loss on cash flow hedges, net of tax | | | | — | | | | | — | | | | | — | | | | | 4 | | | |||||||||||||||||
Changes in loss on equity investment, net of tax | | | | — | | | | | (3) | | | | | — | | | | | (7) | | | |||||||||||||||||
Other comprehensive loss, net of tax | | | | (3) | | | | | (4) | | | | | (15) | | | | | (2) | | | |||||||||||||||||
Unrealized actuarial gain (loss) on defined benefit plans, net of tax | | | | 2,251 | | | | | (32) | | | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | | | | 9,710 | | | | | (12,244) | | | |||||||||||||||||||||||||||
Comprehensive income (loss) | | | | 2 | | | | | 151 | | | | | (1) | | | | | 131 | | | | | | 26,891 | | | | | (19,352) | | | ||||||
Comprehensive income attributable to non-controlling interest in subsidiaries | | | | (1) | | | | | (1) | | | | | (3) | | | | | (4) | | | | | | (596) | | | | | (1,033) | | | ||||||
Comprehensive income (loss) attributable to the Company | | | $ | 1 | | | | $ | 150 | | | | $ | (4) | | | | $ | 127 | | | | | $ | 26,295 | | | | $ | (20,385) | | | |
(in $ millions, except share data) | | September 30, 2015 | | December 31, 2014 | | |||||||||||||||||||||
(in $ thousands, except share data) | | March 31, 2016 | | December 31, 2015 | | |||||||||||||||||||||
Assets | | | | | ||||||||||||||||||||||
Current assets: | | | | | ||||||||||||||||||||||
Cash and cash equivalents | | | $ | 101 | | | | $ | 139 | | | | | $ | 127,993 | | | | $ | 154,841 | | | ||||
Accounts receivable (net of allowances for doubtful accounts of $14 and $14) | | | | 237 | | | | | 184 | | | |||||||||||||||
Accounts receivable (net of allowances for doubtful accounts of $14,242 and $14,575) | | | | 253,728 | | | | | 205,686 | | | |||||||||||||||
Deferred income taxes | | | | 3 | | | | | 5 | | | | | | 5,231 | | | | | 5,133 | | | ||||
Other current assets | | | | 116 | | | | | 84 | | | | | | 141,440 | | | | | 99,481 | | | ||||
Total current assets | | | | 457 | | | | | 412 | | | | | | 528,392 | | | | | 465,141 | | | ||||
Property and equipment, net | | | | 449 | | | | | 414 | | | | | | 447,777 | | | | | 459,848 | | | ||||
Goodwill | | | | 1,055 | | | | | 997 | | | | | | 1,072,075 | | | | | 1,067,415 | | | ||||
Trademarks and tradenames | | | | 314 | | | | | 314 | | | | | | 314,013 | | | | | 313,961 | | | ||||
Other intangible assets, net | | | | 564 | | | | | 619 | | | | | | 540,141 | | | | | 534,540 | | | ||||
Cash held as collateral | | | | — | | | | | 26 | | | |||||||||||||||
Deferred income taxes | | | | 9 | | | | | 9 | | | | | | 10,485 | | | | | 10,348 | | | ||||
Other non-current assets | | | | 90 | | | | | 101 | | | | | | 52,905 | | | | | 54,176 | | | ||||
Total assets | | | $ | 2,938 | | | | $ | 2,892 | | | | | $ | 2,965,788 | | | | $ | 2,905,429 | | | ||||
Liabilities and equity | | | | | ||||||||||||||||||||||
Current liabilities: | | | | | ||||||||||||||||||||||
Accounts payable | | | $ | 64 | | | | $ | 73 | | | | | $ | 73,995 | | | | $ | 74,277 | | | ||||
Accrued expenses and other current liabilities | | | | 463 | | | | | 426 | | | | | | 476,269 | | | | | 430,650 | | | ||||
Current portion of long-term debt | | | | 67 | | | | | 56 | | | | | | 62,484 | | | | | 74,163 | | | ||||
Total current liabilities | | | | 594 | | | | | 555 | | | | | | 612,748 | | | | | 579,090 | | | ||||
Long-term debt | | | | 2,405 | | | | | 2,384 | | | | | | 2,362,205 | | | | | 2,363,035 | | | ||||
Deferred income taxes | | | | 57 | | | | | 54 | | | | | | 59,027 | | | | | 59,663 | | | ||||
Other non-current liabilities | | | | 241 | | | | | 237 | | | | | | 228,482 | | | | | 226,499 | | | ||||
Total liabilities | | | | 3,297 | | | | | 3,230 | | | | | | 3,262,462 | | | | | 3,228,287 | | | ||||
Commitments and contingencies (Note 9) | | | ||||||||||||||||||||||||
Commitments and contingencies (Note 10) | | | ||||||||||||||||||||||||
Shareholders’ equity (deficit): | | | | | ||||||||||||||||||||||
Preference shares ($0.0025 par value; 225,000,000 shares authorized; no shares issued and outstanding as of both September 30, 2015 and December 31, 2014) | | | | — | | | | | — | | | |||||||||||||||
Common shares ($0.0025 par value; 560,000,000 shares authorized; 124,262,703 shares and 122,505,599 shares issued; 122,500,140 shares and 121,411,360 shares outstanding as of September 30, 2015 and December 31, 2014, respectively) | | | | — | | | | | — | | | |||||||||||||||
Preference shares ($0.0025 par value; 225,000,000 shares authorized; no shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively) | | | | — | | | | | — | | | |||||||||||||||
Common shares ($0.0025 par value; 560,000,000 shares authorized; 124,587,794 shares and 124,476,382 shares issued; 123,719,469 shares and 123,631,474 shares outstanding as of March 31, 2016 and December 31, 2015, respectively) | | | | 311 | | | | | 311 | | | |||||||||||||||
Additional paid in capital | | | | 2,724 | | | | | 2,715 | | | | | | 2,715,106 | | | | | 2,715,538 | | | ||||
Treasury shares, at cost (1,762,563 shares and 1,094,239 shares as of September 30, 2015 and December 31, 2014, respectively) | | | | (28) | | | | | — | | | |||||||||||||||
Treasury shares, at cost (868,325 shares and 844,908 shares as of March 31, 2016 and December 31, 2015, respectively) | | | | (13,606) | | | | | (13,331) | | | |||||||||||||||
Accumulated deficit | | | | (2,887) | | | | | (2,898) | | | | | | (2,865,073) | | | | | (2,881,658) | | | ||||
Accumulated other comprehensive loss | | | | (189) | | | | | (174) | | | | | | (167,797) | | | | | (177,507) | | | ||||
Total shareholders’ equity (deficit) | | | | (380) | | | | | (357) | | | | | | (331,059) | | | | | (356,647) | | | ||||
Equity attributable to non-controlling interest in subsidiaries | | | | 21 | | | | | 19 | | | | | | 34,385 | | | | | 33,789 | | | ||||
Total equity (deficit) | | | | (359) | | | | | (338) | | | | | | (296,674) | | | | | (322,858) | | | ||||
Total liabilities and equity | | | $ | 2,938 | | | | $ | 2,892 | | | | | $ | 2,965,788 | | | | $ | 2,905,429 | | | |
(in $ millions) | | Nine Months Ended September 30, 2015 | | Nine Months Ended September 30, 2014 | | |||||||||||||||||||||
(in $ thousands) | | Three Months Ended March 31, 2016 | | Three Months Ended March 31, 2015 | | |||||||||||||||||||||
Operating activities | | | | | ||||||||||||||||||||||
Net income | | | $ | 14 | | | | $ | 133 | | | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | ||||||||||||||||||||||||
Net income (loss) | | | $ | 17,181 | | | | $ | (7,108) | | | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | ||||||||||||||||||||||||
Depreciation and amortization | | | | 175 | | | | | 171 | | | | | | 52,241 | | | | | 61,028 | | | ||||
Amortization of customer loyalty payments | | | | 51 | | | | | 56 | | | | | | 16,574 | | | | | 18,329 | | | ||||
Gain on sale of shares of Orbitz Worldwide | | | | (6) | | | | | (356) | | | | | | — | | | | | (6,271) | | | ||||
Amortization of debt finance costs | | | | 5 | | | | | 8 | | | |||||||||||||||
Accrual of repayment fee and amortization of debt discount | | | | 3 | | | | | 7 | | | |||||||||||||||
Loss on early extinguishment of debt | | | | — | | | | | 108 | | | |||||||||||||||
Amortization of debt finance costs and debt discount | | | | 2,571 | | | | | 2,551 | | | |||||||||||||||
(Gain) loss on foreign exchange derivative instruments | | | | (7) | | | | | 10 | | | | | | (11,074) | | | | | 10,586 | | | ||||
Payment-in-kind interest | | | | — | | | | | 17 | | | |||||||||||||||
Share of losses in equity method investments | | | | 1 | | | | | 1 | | | |||||||||||||||
Loss on interest rate derivative instruments | | | | 16,456 | | | | | — | | | |||||||||||||||
Share of earnings in equity method investment | | | | — | | | | | (19) | | | |||||||||||||||
Equity-based compensation | | | | 25 | | | | | 30 | | | | | | 9,117 | | | | | 12,402 | | | ||||
Deferred income taxes | | | | 4 | | | | | 9 | | | | | | (887) | | | | | 1,724 | | | ||||
Customer loyalty payments | | | | (56) | | | | | (66) | | | | | | (25,307) | | | | | (23,400) | | | ||||
Pension liability contribution | | | | (2) | | | | | (5) | | | | | | (1,118) | | | | | (672) | | | ||||
Changes in assets and liabilities: | | | | | ||||||||||||||||||||||
Accounts receivable | | | | (49) | | | | | (51) | | | | | | (49,424) | | | | | (51,218) | | | ||||
Other current assets | | | | (39) | | | | | (1) | | | | | | (23,251) | | | | | (12,520) | | | ||||
Accounts payable, accrued expenses and other current liabilities | | | | 32 | | | | | (88) | | | | | | 27,232 | | | | | 8,104 | | | ||||
Other | | | | 3 | | | | | 6 | | | | | | (4,107) | | | | | (2,497) | | | ||||
Net cash provided by (used in) operating activities | | | $ | 154 | | | | $ | (11) | | | |||||||||||||||
Net cash provided by operating activities | | | $ | 26,204 | | | | $ | 11,019 | | | |||||||||||||||
Investing activities | | | | | ||||||||||||||||||||||
Property and equipment additions | | | $ | (76) | | | | $ | (83) | | | | | $ | (22,521) | | | | $ | (27,084) | | | ||||
Proceeds from sale of shares of Orbitz Worldwide | | | | 6 | | | | | 366 | | | |||||||||||||||
Business acquired, net of cash | | | | (61) | | | | | (10) | | | |||||||||||||||
Purchase of equity method investment | | | | — | | | | | (10) | | | |||||||||||||||
Net cash (used in) provided by investing activities | | | $ | (131) | | | | $ | 263 | | | |||||||||||||||
Proceeds from sale of shares of Orbitz Worlwide | | | | — | | | | | 6,271 | | | |||||||||||||||
Net cash used in investing activities | | | $ | (22,521) | | | | $ | (20,813) | | | |
(in $ millions) | | | Nine Months Ended September 30, 2015 | | | Nine Months Ended September 30, 2014 | | ||||||
Financing activities | | | | ||||||||||
Proceeds from issuance of common shares in initial public offering | | | | $ | — | | | | | $ | 445 | | |
Proceeds from term loans | | | | | — | | | | | | 2,345 | | |
Proceeds from bridge loans | | | | | — | | | | | | 425 | | |
Repayment of term loans under senior secured credit agreement | | | | | (18) | | | | | | (1,477) | | |
Repayment of bridge loans | | | | | — | | | | | | (425) | | |
Repayment of term loans under second lien credit agreement | | | | | — | | | | | | (863) | | |
Repurchase / repayment of senior notes and senior subordinated notes | | | | | — | | | | | | (588) | | |
Proceeds from revolver borrowings | | | | | 30 | | | | | | 75 | | |
Repayment of revolver borrowings | | | | | (30) | | | | | | (75) | | |
Repayment of capital lease obligations and other indebtedness | | | | | (26) | | | | | | (23) | | |
Release of cash provided as collateral | | | | | 26 | | | | | | 29 | | |
Payment related to early extinguishment of debt | | | | | — | | | | | | (46) | | |
Purchase of non-controlling interest in subsidiary | | | | | — | | | | | | (65) | | |
Debt finance costs | | | | | — | | | | | | (37) | | |
Dividend to shareholders | | | | | (28) | | | | | | (2) | | |
Tax withholding for equity awards (Note 1) | | | | | (1) | | | | | | (5) | | |
Treasury share purchase related to vesting of equity awards (Note 1) | | | | | (13) | | | | | | — | | |
Proceeds from settlement of derivative instruments | | | | | — | | | | | | 3 | | |
Other | | | | | — | | | | | | 4 | | |
Net cash used in financing activities | | | | $ | (60) | | | | | $ | (280) | | |
Effect of changes in exchange rate on cash and cash equivalents | | | | | (1) | | | | | | (1) | | |
Net decrease in cash and cash equivalents | | | | | (38) | | | | | | (29) | | |
Cash and cash equivalents at beginning of period | | | | | 139 | | | | | | 154 | | |
Cash and cash equivalents at end of period | | | | $ | 101 | | | | | $ | 125 | | |
Supplementary disclosures of cash flow information | | | | ||||||||||
Interest payments | | | | | 109 | | | | | | 263 | | |
Income tax payments, net | | | | | 18 | | | | | | 19 | | |
Non-cash exchange of debt for equity | | | | | — | | | | | | 571 | | |
Non-cash capital leases additions (Note 4) | | | | | 86 | | | | | | 14 | | |
Non-cash purchase of property and equipment | | | | | 34 | | | | | | — | | |
(in $ thousands) | | | Three Months Ended March 31, 2016 | | | Three Months Ended March 31, 2015 | | ||||||
Financing activities | | | | ||||||||||
Proceeds from revolver borrowings | | | | $ | 10,000 | | | | | $ | — | | |
Repayment of revolver borrowings | | | | | (10,000) | | | | | | — | | |
Repayment of term loans | | | | | (9,405) | | | | | | (5,938) | | |
Repayment of capital lease obligations and other indebtedness | | | | | (12,079) | | | | | | (8,056) | | |
Release of cash provided as collateral | | | | | — | | | | | | 2,279 | | |
Dividend to shareholders | | | | | (9,280) | | | | | | (9,106) | | |
Treasury share purchase related to vesting of equity awards | | | | | (275) | | | | | | — | | |
Net cash used in financing activities | | | | $ | (31,039) | | | | | $ | (20,821) | | |
Effect of changes in exchange rates on cash and cash equivalents | | | | | 508 | | | | | | (973) | | |
Net decrease in cash and cash equivalents | | | | | (26,848) | | | | | | (31,588) | | |
Cash and cash equivalents at beginning of period | | | | | 154,841 | | | | | | 138,986 | | |
Cash and cash equivalents at end of period | | | | $ | 127,993 | | | | | $ | 107,398 | | |
Supplemental disclosure of cash flow information | | | | ||||||||||
Interest payments, net of capitalized interest | | | | $ | 37,480 | | | | | $ | 37,901 | | |
Income tax payments, net of refunds | | | | | 4,549 | | | | | | 7,263 | | |
Non-cash capital lease additions | | | | | 6,779 | | | | | | 4,070 | | |
| | | Common Shares | | | Additional Paid in Capital | | | Treasury Shares | | | Accumulated Deficit | | | Accumulated Other Comprehensive Loss | | | Non- Controlling Interest in Subsidiaries | | | Total Equity (Deficit) | | ||||||||||||||||||||||||||||||||||||||||||
(in $ millions, except share data) | | | Number | | | Amount | | | Number | | | Amount | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2014 | | | | | 122,505,599 | | | | | $ | — | | | | | $ | 2,715 | | | | | | — | | | | | $ | — | | | | | $ | (2,898) | | | | | $ | (174) | | | | | $ | 19 | | | | | $ | (338) | | | |||||||||
Change in accounting policy for treasury shares (Note 1) | | | | | — | | | | | | — | | | | | | 17 | | | | | | 1,094,239 | | | | | | (17) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||||||||
Dividend to shareholders | | | | | — | | | | | | — | | | | | | (28) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | (29) | | | |||||||||
Equity-based compensation | | | | | 1,757,104 | | | | | | — | | | | | | 20 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20 | | | |||||||||
Treasury shares activity related to vesting of equity awards | | | | | — | | | | | | — | | | | | | — | | | | | | 668,324 | | | | | | (11) | | | | | | — | | | | | | — | | | | | | — | | | | | | (11) | | | |||||||||
Comprehensive income (loss), net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | | | | | (15) | | | | | | 3 | | | | | | (1) | | | |||||||||
Balance as of September 30, 2015 | | | | | 124,262,703 | | | | | $ | — | | | | | $ | 2,724 | | | | | | 1,762,563 | | | | | $ | (28) | | | | | $ | (2,887) | | | | | $ | (189) | | | | | $ | 21 | | | | | $ | (359) | | | |||||||||
|
| | | 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, 2015 | | | | | 124,476,382 | | | | | $ | 311 | | | | | $ | 2,715,538 | | | | | | 844,908 | | | | | $ | (13,331) | | | | | $ | (2,881,658) | | | | | $ | (177,507) | | | | | $ | 33,789 | | | | | $ | (322,858) | | |
Dividend to shareholders ($0.075 per share) | | | | | — | | | | | | — | | | | | | (9,458) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,458) | | |
Equity-based compensation | | | | | 111,412 | | | | | | — | | | | | | 9,026 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,026 | | |
Treasury shares purchased in relation to vesting of equity awards | | | | | — | | | | | | — | | | | | | — | | | | | | 23,417 | | | | | | (275) | | | | | | — | | | | | | — | | | | | | — | | | | | | (275) | | |
Comprehensive income (loss), net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,585 | | | | | | 9,710 | | | | | | 596 | | | | | | 26,891 | | |
Balance as of March 31, 2016 | | | | | 124,587,794 | | | | | $ | 311 | | | | | $ | 2,715,106 | | | | | | 868,325 | | | | | $ | (13,606) | | | | | $ | (2,865,073) | | | | | $ | (167,797) | | | | | $ | 34,385 | | | | | $ | (296,674) | | |
|
(in $ millions) | | September 30, 2015 | | December 31, 2014 | | |||||||||||||||||||||
(in $ thousands) | | March 31, 2016 | | December 31, 2015 | | |||||||||||||||||||||
Prepaid expenses | | | $ | 39,684 | | | | $ | 26,395 | | | |||||||||||||||
Prepaid incentives | | | $ | 30 | | | | $ | 13 | | | | | | 31,219 | | | | | 26,496 | | | ||||
Prepaid expenses | | | | 29 | | | | | 20 | | | |||||||||||||||
Sales and use tax receivables | | | | 27 | | | | | 28 | | | | | | 29,628 | | | | | 27,233 | | | ||||
Restricted cash | | | | 14 | | | | | 9 | | | | | | 20,714 | | | | | 11,701 | | | ||||
Derivative assets | | | | 1 | | | | | — | | | | | | 5,903 | | | | | 657 | | | ||||
Available-for-sale securities | | | | — | | | | | 6 | | | |||||||||||||||
Other | | | | 15 | | | | | 8 | | | | | | 14,292 | | | | | 6,999 | | | ||||
| | | $ | 116 | | | | $ | 84 | | | | | $ | 141,440 | | | | $ | 99,481 | | | |
| | September 30, 2015 | | December 31, 2014 | | | March 31, 2016 | | December 31, 2015 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in $ millions) | | Cost | | Accumulated depreciation | | Net | | Cost | | Accumulated depreciation | | Net | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | Cost | | Accumulated depreciation | | Net | | Cost | | Accumulated depreciation | | Net | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized software | | | $ | 833 | | | | $ | (604) | | | | $ | 229 | | | | $ | 772 | | | | $ | (554) | | | | $ | 218 | | | | | $ | 881,751 | | | | $ | (661,426) | | | | $ | 220,325 | | | | $ | 870,868 | | | | $ | (635,135) | | | | $ | 235,733 | | | ||||||||||||
Computer equipment | | | | 297 | | | | | (156) | | | | | 141 | | | | | 297 | | | | | (175) | | | | | 122 | | | | | | 308,859 | | | | | (178,986) | | | | | 129,873 | | | | | 303,902 | | | | | (168,380) | | | | | 135,522 | | | ||||||||||||
Building and leasehold improvements | | | | 23 | | | | | (8) | | | | | 15 | | | | | 24 | | | | | (9) | | | | | 15 | | | | | | 25,334 | | | | | (9,490) | | | | | 15,844 | | | | | 24,102 | | | | | (8,735) | | | | | 15,367 | | | ||||||||||||
Construction in progress | | | | 64 | | | | | — | | | | | 64 | | | | | 59 | | | | | — | | | | | 59 | | | | | | 81,735 | | | | | — | | | | �� | 81,735 | | | | | 73,226 | | | | | — | | | | | 73,226 | | | ||||||||||||
| | | $ | 1,217 | | | | $ | (768) | | | | $ | 449 | | | | $ | 1,152 | | | | $ | (738) | | | | $ | 414 | | | | | $ | 1,297,679 | | | | $ | (849,902) | | | | $ | 447,777 | | | | $ | 1,272,098 | | | | $ | (812,250) | | | | $ | 459,848 | | | |
(in $ millions) | | January 1, 2015 | | Additions | | Retirements | | Foreign Exchange | | September 30, 2015 | | |||||||||||||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | January 1, 2016 | | Additions | | Retirements | | Foreign Exchange | | March 31, 2016 | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Amortizable Assets: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | | | $ | 997 | | | | $ | 58 | | | | $ | — | | | | $ | — | | | | $ | 1,055 | | | | | $ | 1,067,415 | | | | $ | — | | | | $ | — | | | | $ | 4,660 | | | | $ | 1,072,075 | | | ||||||||||
Trademarks and tradenames | | | | 314 | | | | | — | | | | | — | | | | | — | | | | | 314 | | | | | | 313,961 | | | | | — | | | | | — | | | | | 52 | | | | | 314,013 | | | ||||||||||
Other Intangible Assets: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired intangible assets | | | | 1,129 | | | | | — | | | | | (3) | | | | | 1 | | | | | 1,127 | | | | | | 1,127,360 | | | | | — | | | | | — | | | | | (26) | | | | | 1,127,334 | | | ||||||||||
Accumulated amortization | | | | (687) | | | | | (56) | | | | | 3 | | | | | (1) | | | | | (741) | | | | | | (756,489) | | | | | (11,139) | | | | | — | | | | | (552) | | | | | (768,180) | | | ||||||||||
Acquired intangible assets, net | | | | 442 | | | | | (56) | | | | | — | | | | | — | | | | | 386 | | | | | | 370,871 | | | | | (11,139) | | | | | — | | | | | (578) | | | | | 359,154 | | | ||||||||||
Customer loyalty payments | | | | 334 | | | | | 58 | | | | | (75) | | | | | (6) | | | | | 311 | | | | | | 300,142 | | | | | 32,050 | | | | | (19,880) | | | | | 4,124 | | | | | 316,436 | | | ||||||||||
Accumulated amortization | | | | (157) | | | | | (51) | | | | | 75 | | | | | — | | | | | (133) | | | | | | (136,473) | | | | | (16,574) | | | | | 19,154 | | | | | (1,556) | | | | | (135,449) | | | ||||||||||
Customer loyalty payments, net | | | | 177 | | | | | 7 | | | | | — | | | | | (6) | | | | | 178 | | | | | | 163,669 | | | | | 15,476 | | | | | (726) | | | | | 2,568 | | | | | 180,987 | | | ||||||||||
Other intangible assets, net | | | $ | 619 | | | | $ | (49) | | | | $ | — | | | | $ | (6) | | | | $ | 564 | | | | | $ | 534,540 | | | | $ | 4,337 | | | | $ | (726) | | | | $ | 1,990 | | | | $ | 540,141 | | | |
(in $ millions) | | | January 1, 2014 | | | Additions | | | Retirements | | | Foreign Exchange | | | September 30, 2014 | | ||||||||||||||||||||
Non-Amortizable Assets: | | | | | | | ||||||||||||||||||||||||||||||
Goodwill | | | | $ | 986 | | | | | $ | 14 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,000 | | | |||||
Trademarks and tradenames | | | | | 314 | | | | | | — | | | | | | — | | | | | | — | | | | | | 314 | | | |||||
Other Intangible Assets: | | | | | | | ||||||||||||||||||||||||||||||
Acquired intangible assets | | | | | 1,129 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,129 | | | |||||
Accumulated amortization | | | | | (610) | | | | | | (58) | | | | | | — | | | | | | — | | | | | | (668) | | | |||||
Acquired intangible assets, net | | | | | 519 | | | | | | (58) | | | | | | — | | | | | | — | | | | | | 461 | | | |||||
Customer loyalty payments | | | | | 306 | | | | | | 86 | | | | | | (52) | | | | | | (2) | | | | | | 338 | | | |||||
Accumulated amortization | | | | | (154) | | | | | | (56) | | | | | | 52 | | | | | | — | | | | | | (158) | | | |||||
Customer loyalty payments, net | | | | | 152 | | | | | | 30 | | | | | | — | | | | | | (2) | | | | | | 180 | | | |||||
Other intangible assets, net | | | | $ | 671 | | | | | $ | (28) | | | | | $ | — | | | | | $ | (2) | | | | | $ | 641 | | | |||||
|
(in $ thousands) | | | January 1, 2015 | | | Additions | | | Retirements | | | Foreign Exchange | | | March 31, 2015 | | |||||||||||||||
Non-Amortizable Assets: | | | | | | | |||||||||||||||||||||||||
Goodwill | | | | $ | 997,419 | | | | | $ | — | | | | | $ | — | | | | | $ | (1,455) | | | | | $ | 995,964 | | |
Trademarks and tradenames | | | | | 313,961 | | | | | | — | | | | | | — | | | | | | — | | | | | | 313,961 | | |
Other Intangible Assets: | | | | | | | |||||||||||||||||||||||||
Acquired intangible assets | | | | | 1,129,320 | | | | | | — | | | | | | (2,222) | | | | | | 111 | | | | | | 1,127,209 | | |
Accumulated amortization | | | | | (687,495) | | | | | | (18,623) | | | | | | 2,222 | | | | | | (200) | | | | | | (704,096) | | |
Acquired intangible assets, net | | | | | 441,825 | | | | | | (18,623) | | | | | | — | | | | | | (89) | | | | | | 423,113 | | |
Customer loyalty payments | | | | | 334,309 | | | | | | 19,836 | | | | | | (31,761) | | | | | | — | | | | | | 322,384 | | |
Accumulated amortization | | | | | (157,319) | | | | | | (18,329) | | | | | | 31,761 | | | | | | (510) | | | | | | (144,397) | | |
Customer loyalty payments, net | | | | | 176,990 | | | | | | 1,507 | | | | | | — | | | | | | (510) | | | | | | 177,987 | | |
Other intangible assets, net | | | | $ | 618,815 | | | | | $ | (17,116) | | | | | $ | — | | | | | $ | (599) | | | | | $ | 601,100 | | |
|
(in $ thousands) | | | March 31, 2016 | | | December 31, 2015 | | ||||||
Supplier prepayments | | | | $ | 19,828 | | | | | $ | 14,616 | | |
Prepaid incentives | | | | | 10,364 | | | | | | 9,282 | | |
Deferred financing costs | | | | | 6,096 | | | | | | 6,543 | | |
Pension assets | | | | | 5,969 | | | | | | 5,186 | | |
Derivative assets | | | | | — | | | | | | 8,655 | | |
Other | | | | | 10,648 | | | | | | 9,894 | | |
| | | | $ | 52,905 | | | | | $ | 54,176 | | |
|
(in $ millions) | | September 30, 2015 | | December 31, 2014 | | |||||||||||||||||||||
(in $ thousands) | | March 31, 2016 | | December 31, 2015 | | |||||||||||||||||||||
Accrued commissions and incentives | | | $ | 280 | | | | $ | 260 | | | | | $ | 276,979 | | | | $ | 241,358 | | | ||||
Accrued payroll and related | | | | 68 | | | | | 59 | | | | | | 63,879 | | | | | 77,544 | | | ||||
Deferred revenue | | | | 36 | | | | | 27 | | | | | | 49,391 | | | | | 35,836 | | | ||||
Accrued interest expense | | | | 18 | | | | | 18 | | | |||||||||||||||
Customer prepayments | | | | 14 | | | | | 9 | | | | | | 20,714 | | | | | 11,701 | | | ||||
Income tax payable | | | | 17 | | | | | 16 | | | | | | 20,274 | | | | | 15,516 | | | ||||
Derivative contracts | | | | 9 | | | | | 16 | | | |||||||||||||||
Accrued interest expense | | | | 17,221 | | | | | 18,800 | | | |||||||||||||||
Derivative liabilities | | | | 5,421 | | | | | 10,341 | | | |||||||||||||||
Pension and post-retirement benefit liabilities | | | | 1 | | | | | 2 | | | | | | 1,748 | | | | | 1,528 | | | ||||
Other | | | | 20 | | | | | 19 | | | | | | 20,642 | | | | | 18,026 | | | ||||
| | | $ | 463 | | | | $ | 426 | | | | | $ | 476,269 | | | | $ | 430,650 | | | |
(in $ millions) | | Interest rate | | Maturity | | September 30, 2015 | | December 31, 2014 | | |||||||||||||||||||||||||||||
(in $ thousands) | | Interest rate | | Maturity | | March 31, 2016 | | December 31, 2015 | | |||||||||||||||||||||||||||||
Senior Secured Credit Agreement | | | | | | | ||||||||||||||||||||||||||||||||
Term loans | | | | | | | ||||||||||||||||||||||||||||||||
Dollar denominated | | L+4.75% | | September 2021 | | | $ | 2,332 | | | | $ | 2,347 | | | | L+4.75% | | September 2021 | | | $ | 2,296,034 | | | | $ | 2,303,315 | | | ||||||||
Revolver borrowings | | | | | | | ||||||||||||||||||||||||||||||||
Dollar denominated | | L+5.00% | | September 2019 | | | | — | | | | | — | | | | L+5.00% | | September 2019 | | | | — | | | | | — | | | ||||||||
Capital leases and other indebtedness | | | | | | | | 140 | | | | | 93 | | | | | | | | | | 128,655 | | | | | 133,883 | | | ||||||||
Total debt | | | | | | | | 2,472 | | | | | 2,440 | | | | | | | | | $ | 2,424,689 | | | | $ | 2,437,198 | | | ||||||||
Less: current portion | | | | | | | | 67 | | | | | 56 | | | | | | | | | | 62,484 | | | | | 74,163 | | | ||||||||
Long-term debt | | | | | | | $ | 2,405 | | | | $ | 2,384 | | | | | | | | | $ | 2,362,205 | | | | $ | 2,363,035 | | | |
| | | | Fair Value Asset | | | | Fair Value (Liability) | | | | | Fair Value Asset | | | | Fair Value (Liability) | | ||||||||||||||||||||||||||||||||||||||||||||||||
(in $ millions) | | Balance Sheet Location | | September 30, 2015 | | December 31, 2014 | | Balance Sheet Location | | September 30, 2015 | | December 31, 2014 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | | Other current assets | | | $ | 1 | | | | $ | — | | | Accrued expenses and other current liabilities | | | $ | (9) | | | | $ | (16) | | | |||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | | | | | | — | | | | | — | | | Other non-current liabilities | | | | (1) | | | | | — | | | |||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | Balance Sheet Location | | March 31, 2016 | | December 31, 2015 | | Balance Sheet Location | | March 31, 2016 | | December 31, 2015 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | | Other non-current assets | | | $ | — | | | | $ | 8,655 | | | Other non-current liabilities | | | $ | (7,801) | | | | $ | — | | | |||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | | Other current assets | | | | 5,903 | | | | | 657 | | | Accrued Expenses and other current liabilities | | | | (5,421) | | | | | (10,341) | | | |||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | | Other non-current assets | | | | — | | | | | — | | | Other non-current liabilities | | | | (136) | | | | | (1,082) | | | |||||||||||||||||||||||||||||||||||||||||
Total fair value of derivative assets (liabilities) | | | | | $ | 5,903 | | | | $ | 9,312 | | | | | | $ | (13,358) | | | | $ | (11,423) | | | |||||||||||||||||||||||||||||||||||||||||
| | | | | $ | 1 | | | | $ | — | | | | | | $ | (10) | | | | $ | (16) | | | | ||||||||||||||||||||||||||||||||||||||||
|
(in $ millions) | | | Nine Months Ended September 30, 2015 | | | Nine Months Ended September 30, 2014 | | ||||||||
Net derivative (liability) asset opening balance | | | | $ | (16) | | | | | $ | 10 | | | ||
Total loss for the period included in net income | | | | | (15) | | | | | | (9) | | | ||
Total loss for the period accounted through other comprehensive loss | | | | | — | | | | | | (4) | | | ||
Payments on (proceeds from) settlement of foreign currency derivative contracts | | | | | 22 | | | | | | (6) | | | ||
Net derivative liability closing balance | | | | $ | (9) | | | | | $ | (9) | | | ||
|
(in $ thousands) | | | Three Months Ended March 31, 2016 | | | Three Months Ended March 31, 2015 | | ||||||
Net derivative liability opening balance | | | | $ | (2,111) | | | | | $ | (15,548) | | |
Total loss for the period included in net income (loss) | | | | | (14,605) | | | | | | (16,457) | | |
Payments on settlement of foreign currency derivative contracts | | | | | 9,261 | | | | | | 5,933 | | |
Net derivative liability closing balance | | | | $ | (7,455) | | | | | $ | (26,072) | | |
|
| | | Amount of Gain Recognized in Other Comprehensive Loss | | | Statement of Operations Location | | | Amount of Loss Recorded in Net Income | | ||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | | | | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||||||||||||||||||||||||||||
(in $ millions) | | | 2015 | | | 2014 | | | 2015 | | | 2014 | | | | | | 2015 | | | 2014 | | | 2015 | | | 2014 | | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 4 | | | | Interest expense, net | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | ||||||||
Derivatives not designated as hedging instruments: | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Interest expense, net | | | | | — | | | | | | (1) | | | | | | — | | | | | | (9) | | | ||||||||
Foreign currency forward contracts | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Selling, general and administrative | | | | | (10) | | | | | | (9) | | | | | | (15) | | | | | | (7) | | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (10) | | | | | $ | (10) | | | | | $ | (15) | | | | | $ | (16) | | | ||||||||
|
| | | | | | Amount of Income (Loss) Recorded in Net Income (Loss) | | |||||||||
(in $ thousands) | | | Location of Gain (Loss) Recorded in Income (Loss) | | | Three Months Ended March 31, | | |||||||||
| | | | | | 2016 | | | 2015 | | ||||||
Interest rate swap contracts | | | Interest expense, net | | | | $ | (16,456) | | | | | $ | — | | |
Foreign currency contracts | | | Selling, general and administrative | | | | | 1,851 | | | | | | (16,457) | | |
| | | | | | | $ | (14,605) | | | | | $ | (16,457) | | |
|
| | | | September 30, 2015 | | December 31, 2014 | | | | | March 31, 2016 | | December 31, 2015 | | ||||||||||||||||||||||||||||||||||||||||||
(in $ millions) | | Fair Value Hierarchy | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | |||||||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | Fair Value Hierarchy | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | |||||||||||||||||||||||||||||||||||||||||||||
Asset (liability) | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | | Level 1 | | | $ | — | | | | $ | — | | | | $ | 6 | | | | $ | 6 | | | |||||||||||||||||||||||||||||||||
Derivative assets | | Level 2 | | | | 1 | | | | | 1 | | | | | — | | | | | — | | | | Level 2 | | | | 5,903 | | | | | 5,903 | | | | | 9,312 | | | | | 9,312 | | | ||||||||||
Derivative liabilities | | Level 2 | | | | (10) | | | | | (10) | | | | | (16) | | | | | (16) | | | | Level 2 | | | | (13,358) | | | | | (13,358) | | | | | (11,423) | | | | | (11,423) | | | ||||||||||
Total debt | | Level 2 | | | | (2,472) | | | | | (2,489) | | | | | (2,440) | | | | | (2,461) | | | | Level 2 | | | | (2,424,689) | | | | | (2,466,987) | | | | | (2,437,198) | | | | | (2,431,242) | | |
Declaration Date | | | Dividend Per Share | | | Record Date | | | Payment Date | | | Amount (in $ million) | | ||||||
February 19, 2015 | | | | $ | 0.075 | | | | March 5, 2015 | | | March 19, 2015 | | | | | 9 | | |
May 1, 2015 | | | | $ | 0.075 | | | | June 5, 2015 | | | June 18, 2015 | | | | | 10 | | |
July 31, 2015 | | | | $ | 0.075 | | | | September 3, 2015 | | | September 17, 2015 | | | | | 9 | | |
Declaration Date | | | Dividend Per Share | | | Record Date | | | Payment Date | | | Amount (in $ thousands) | | ||||||
February 17, 2016 | | | | $ | 0.075 | | | | March 3, 2016 | | | March 17, 2016 | | | | $ | 9,279 | | |
| | | Restricted Share Units | | |||||||||||
(in dollars, except number of RSUs) | | | Number | | | Weighted Average Grant Date Fair Value | | ||||||||
Balance as of January 1, 2015 | | | | | 3,196,422 | | | | | $ | 18.68 | | | ||
Granted at fair market value | | | | | 133,501 | | | | | $ | 14.89 | | | ||
Vested(1) | | | | | (1,800,857) | | | | | $ | 19.81 | | | ||
Forfeited | | | | | (9,000) | | | | | $ | 16.00 | | | ||
Balance as of September 30, 2015 | | | | | 1,520,066 | | | | | $ | 16.91 | | | ||
|
| | | Stock Options | | |||||||||||
(in dollars, except number of stock options) | | | Number | | | Weighted Average Grant Date Fair Value | | ||||||||
Balance as of January 1, 2015 | | | | | 1,270,871 | | | | | $ | 6.72 | | | ||
Granted at fair market value | | | | | 121,117 | | | | | $ | 5.37 | | | ||
Forfeited | | | | | — | | | | | | — | | | ||
Balance as of September 30, 2015 | | | | | 1,391,988 | | | | | $ | 6.61 | | | ||
|
| | | Restricted Units | | |||||||||
(in dollars, except number of Restricted Units) | | | Number | | | Weighted Average Grant Date Fair Value | | ||||||
Balance as of January 1, 2016 | | | | | 2,172,529 | | | | | $ | 15.73 | | |
Granted at fair market value | | | | | 1,634,829 | | | | | $ | 13.18 | | |
Vested(1) | | | | | (60,071) | | | | | $ | 18.64 | | |
Forfeited | | | | | (177,992) | | | | | $ | 16.75 | | |
Balance as of March 31, 2016 | | | | | 3,569,295 | | | | | $ | 14.46 | | |
|
| | | Stock Options | | |||||||||
(in dollars, except number of stock options) | | | Number | | | Weighted Average Grant Date Fair Value | | ||||||
Balance as of January 1, 2016 | | | | | 1,454,638 | | | | | $ | 6.49 | | |
Granted at fair market value | | | | | 1,299,356 | | | | | $ | 4.04 | | |
Forfeited | | | | | (121,751) | | | | | $ | 6.35 | | |
Expired | | | | | (13,184) | | | | | $ | 6.43 | | |
Balance as of March 31, 2016 | | | | | 2,619,059 | | | | | $ | 5.28 | | |
|
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||||||
(in $ million, except share data) | | | 2015 | | | 2014 | | | 2015 | | | 2014 | | ||||||||||||||||
Numerator – Basic and Diluted EPS: | | | | | | ||||||||||||||||||||||||
Net income attributable to the Company | | | | $ | 4 | | | | | $ | 154 | | | | | $ | 11 | | | | | $ | 129 | | | ||||
Denominator – Basic EPS: | | | | | | ||||||||||||||||||||||||
Weighted average common shares outstanding | | | | | 122,495,392 | | | | | | 88,254,078 | | | | | | 122,062,715 | | | | | | 73,701,371 | | | ||||
Income per share – Basic | | | | $ | 0.03 | | | | | $ | 1.75 | | | | | $ | 0.09 | | | | | $ | 1.75 | | | ||||
Denominator – Diluted EPS: | | | | | | ||||||||||||||||||||||||
Number of shares used for Basic EPS | | | | | 122,495,392 | | | | | | 88,254,078 | | | | | | 122,062,715 | | | | | | 73,701,371 | | | ||||
Weighted average effect of dilutive securities | | | | | | ||||||||||||||||||||||||
RSUs | | | | | 161,744 | | | | | | 2,119,936 | | | | | | 447,081 | | | | | | 2,327,658 | | | ||||
Stock Options | | | | | 67,005 | | | | | | 90,637 | | | | | | 53,563 | | | | | | 44,352 | | | ||||
Weighted average common shares outstanding – Diluted | | | | | 122,724,141 | | | | | | 90,464,651 | | | | | | 122,563,359 | | | | | | 76,073,381 | | | ||||
Income per share – Diluted | | | | $ | 0.03 | | | | | $ | 1.71 | | | | | $ | 0.09 | | | | | $ | 1.70 | | | ||||
|
| | | Three Months Ended March 31, | | |||||||||
(in $ thousands, except for share data) | | | 2016 | | | 2015 | | ||||||
Numerator – Basic and Diluted Income (Loss) per Share: | | | | ||||||||||
Net income (loss) attributable to the Company | | | | $ | 16,585 | | | | | $ | (8,141) | | |
Denominator – Basic Income (Loss) per Share: | | | | ||||||||||
Weighted average common shares outstanding | | | | | 123,718,311 | | | | | | 121,411,360 | | |
Income (loss) per share – Basic | | | | $ | 0.13 | | | | | $ | (0.07) | | |
Denominator – Diluted Income (Loss) per Share: | | | | ||||||||||
Number of common shares used for basic income (loss) per share | | | | | 123,718,311 | | | | | | 121,411,360 | | |
Weighted average effect of dilutive securities Stock Options | | | | | 60,096 | | | | | | — | | |
Weighted average common shares outstanding | | | | | 123,778,407 | | | | | | 121,411,360 | | |
Income (loss) per share – Diluted | | | | $ | 0.13 | | | | | $ | (0.07) | | |
|
| | | Three Months Ended September 30, | | | Change | | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||||||||||||||||||||
(in $ millions, except per share data, Reported Segments and RevPas) | | | 2015 | | | 2014 | | | | | | | | | % | | | 2015 | | | 2014 | | | | | | | | | % | | ||||||||||||||||||
Net revenue | | | | $ | 560 | | | | | $ | 529 | | | | | | 31 | | | | | | 6 | | | | | $ | 1,686 | | | | | $ | 1,652 | | | | | | 34 | | | | | | 2 | | |
Operating income | | | | | 54 | | | | | | 21 | | | | | | 33 | | | | | | 155 | | | | | | 151 | | | | | | 156 | | | | | | (5) | | | | | | (4) | | |
Net income | | | | | 5 | | | | | | 155 | | | | | | (150) | | | | | | (97) | | | | | | 14 | | | | | | 133 | | | | | | (119) | | | | | | (89) | | |
Income per share – diluted (in $) | | | | | 0.03 | | | | | | 1.71 | | | | | | (1.68) | | | | | | (98) | | | | | | 0.09 | | | | | | 1.70 | | | | | | (1.61) | | | | | | (94) | | |
Adjusted EBITDA(1) | | | | | 131 | | | | | | 133 | | | | | | (2) | | | | | | (2) | | | | | | 405 | | | | | | 430 | | | | | | (25) | | | | | | (6) | | |
Adjusted Net Income (Loss)(2) | | | | | 30 | | | | | | (3) | | | | | | 33 | | | | | | * | | | | | | 95 | | | | | | (9) | | | | | | 104 | | | | | | * | | |
Adjusted Income (Loss) per Share – diluted(3) (in $) | | | | | 0.25 | | | | | | (0.03) | | | | | | 0.28 | | | | | | * | | | | | | 0.78 | | | | | | (0.12) | | | | | | 0.90 | | | | | | * | | |
Net cash provided by (used in) operating activities | | | | | 62 | | | | | | (53) | | | | | | 115 | | | | | | * | | | | | | 154 | | | | | | (11) | | | | | | 165 | | | | | | * | | |
Adjusted Free Cash Flow(4) | | | | | 31 | | | | | | (62) | | | | | | 93 | | | | | | * | | | | | | 64 | | | | | | (80) | | | | | | 144 | | | | | | * | | |
Reported Segments (in millions) | | | | | 84 | | | | | | 88 | | | | | | (4) | | | | | | (5) | | | | | | 266 | | | | | | 275 | | | | | | (9) | | | | | | (3) | | |
Travel Commerce Platform RevPas (in $) | | | | $ | 6.29 | | | | | $ | 5.67 | | | | | $ | 0.62 | | | | | | 11 | | | | | $ | 5.99 | | | | | $ | 5.68 | | | | | $ | 0.31 | | | | | | 6 | | |
| | | Three Months Ended March 31, | | | Change | | ||||||||||||||||||
(in $ thousands, except share data, Reported Segments and RevPas) | | | 2016 | | | 2015 | | | | | | | | | % | | |||||||||
Net revenue | | | | $ | 609,263 | | | | | $ | 572,128 | | | | | $ | 37,135 | | | | | | 6 | | |
Operating income | | | | | 79,868 | | | | | | 33,749 | | | | | | 46,119 | | | | | | 137 | | |
Net income (loss) | | | | | 17,181 | | | | | | (7,108) | | | | | | 24,289 | | | | | | * | | |
Income (loss) per share – diluted (in $) | | | | | 0.13 | | | | | | (0.07) | | | | | | 0.20 | | | | | | * | | |
Adjusted EBITDA(1) | | | | | 154,140 | | | | | | 137,458 | | | | | | 16,682 | | | | | | 12 | | |
Adjusted Operating Income(2) | | | | | 96,464 | | | | | | 76,724 | | | | | | 19,740 | | | | | | 26 | | |
Adjusted Net Income(3) | | | | | 50,955 | | | | | | 29,577 | | | | | | 21,378 | | | | | | 72 | | |
Adjusted Income per Share – diluted(4) (in $) | | | | | 0.41 | | | | | | 0.24 | | | | | | 0.17 | | | | | | 71 | | |
Net cash provided by operating activities | | | | | 26,204 | | | | | | 11,019 | | | | | | 15,185 | | | | | | 138 | | |
Adjusted Free Cash Flow(5) | | | | | (5,070) | | | | | | (21,018) | | | | | | 15,948 | | | | | | 76 | | |
Reported Segments (in thousands) | | | | | 89,973 | | | | | | 94,520 | | | | | | (4,547) | | | | | | (5) | | |
Travel Commerce Platform RevPas (in $) | | | | $ | 6.43 | | | | | $ | 5.73 | | | | | | 0.70 | | | | | | 12 | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, | | | Three Months Ended March 31, | | ||||||||||||||||||||||||||||||
(in $ millions) | | 2015 | | 2014 | | 2015 | | 2014 | | |||||||||||||||||||||||||||||
Net income | | | $ | 5 | | | | $ | 155 | | | | $ | 14 | | | | $ | 133 | | | |||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | |||||||||||||||||||||||||||||||||
Net income (loss) | | | $ | 17,181 | | | | $ | (7,108) | | | |||||||||||||||||||||||||||
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Amortization of intangible assets(1) | | | | 18 | | | | | 19 | | | | | 56 | | | | | 58 | | | | | | 11,139 | | | | | 18,623 | | | ||||||
Loss on early extinguishment of debt | | | | — | | | | | 94 | | | | | — | | | | | 108 | | | |||||||||||||||||
Share of losses (earnings) in equity method investments | | | | 1 | | | | | (2) | | | | | 1 | | | | | 1 | | | |||||||||||||||||
Share of earnings in equity method investment | | | | — | | | | | (19) | | | |||||||||||||||||||||||||||
Gain on sale of shares of Orbitz Worldwide | | | | — | | | | | (304) | | | | | (6) | | | | | (356) | | | | | | — | | | | | (6,271) | | | ||||||
Equity-based compensation and related taxes | | | | 4 | | | | | 24 | | | | | 25 | | | | | 33 | | | | | | 9,101 | | | | | 12,402 | | | ||||||
Corporate and restructuring costs(2) | | | | 3 | | | | | 4 | | | | | 11 | | | | | 10 | | | | | | 7,409 | | | | | 1,614 | | | ||||||
Other – non cash(3) | | | | (1) | | | | | 7 | | | | | (8) | | | | | 4 | | | | | | 5,403 | | | | | 10,336 | | | ||||||
Tax impact of adjustments | | | | — | | | | | — | | | | | 2 | | | | | — | | | | | | 722 | | | | | — | | | ||||||
Adjusted Net Income (Loss) | | | | 30 | | | | | (3) | | | | | 95 | | | | | (9) | | | |||||||||||||||||
Adjusted Net Income | | | | 50,955 | | | | | 29,577 | | | |||||||||||||||||||||||||||
Adjustments: | | | ||||||||||||||||||||||||||||||||||||
Interest expense, net(4) | | | | 38,439 | | | | | 39,389 | | | |||||||||||||||||||||||||||
Remaining provision for income taxes | | | | 7,070 | | | | | 7,758 | | | |||||||||||||||||||||||||||
Adjusted Operating Income | | | | 96,464 | | | | | 76,724 | | | |||||||||||||||||||||||||||
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Depreciation and amortization of property and equipment | | | | 38 | | | | | 39 | | | | | 119 | | | | | 113 | | | | | | 41,102 | | | | | 42,405 | | | ||||||
Amortization of customer loyalty payments | | | | 15 | | | | | 19 | | | | | 51 | | | | | 56 | | | | | | 16,574 | | | | | 18,329 | | | ||||||
Interest expense, net | | | | 40 | | | | | 67 | | | | | 118 | | | | | 237 | | | |||||||||||||||||
Remaining provision for income taxes | | | | 8 | | | | | 11 | | | | | 22 | | | | | 33 | | | |||||||||||||||||
Adjusted EBITDA | | | $ | 131 | | | | $ | 133 | | | | $ | 405 | | | | $ | 430 | | | | | $ | 154,140 | | | | $ | 137,458 | | | |
| | Nine Months Ended September 30, | | | Three Months Ended March 31, | | ||||||||||||||||||||
(in percentages) | | 2015 | | 2014 | | | 2016 | | 2015 | | ||||||||||||||||
Asia Pacific | | | | 22% | | | | | 19% | | | | | | 22 | | | | | 22 | | | ||||
Europe | | | | 29 | | | | | 31 | | | | | | 33 | | | | | 31 | | | ||||
Latin America and Canada | | | | 5 | | | | | 4 | | | | | | 5 | | | | | 4 | | | ||||
Middle East and Africa | | | | 14 | | | | | 14 | | | | | | 13 | | | | | 13 | | | ||||
International | | | | 70 | | | | | 68 | | | | | | 73 | | | | | 70 | | | ||||
United States | | | | 30 | | | | | 32 | | | | | | 27 | | | | | 30 | | | ||||
Travel Commerce Platform | | | | 100% | | | | | 100% | | | | | | 100 | | | | | 100 | | | |
| | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||||||
(in $ millions) | | | 2015 | | | 2014 | | | $ | | | % | | ||||||||||||||||
Net revenue | | | | $ | 560 | | | | | $ | 529 | | | | | $ | 31 | | | | | | 6 | | | ||||
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Cost of revenue | | | | | 336 | | | | | | 320 | | | | | | 16 | | | | | | 5 | | | ||||
Selling, general and administrative | | | | | 114 | | | | | | 130 | | | | | | (16) | | | | | | (12) | | | ||||
Depreciation and amortization | | | | | 56 | | | | | | 58 | | | | | | (2) | | | | | | (4) | | | ||||
Total costs and expenses | | | | | 506 | | | | | | 508 | | | | | | (2) | | | | | | — | | | ||||
Operating income | | | | | 54 | | | | | | 21 | | | | | | 33 | | | | | | 155 | | | ||||
Interest expense, net | | | | | (40) | | | | | | (67) | | | | | | 27 | | | | | | 41 | | | ||||
Loss on early extinguishment of debt | | | | | — | | | | | | (94) | | | | | | 94 | | | | | | 100 | | | ||||
Gain on sale of shares of Orbitz Worldwide | | | | | — | | | | | | 304 | | | | | | (304) | | | | | | (100) | | | ||||
Income before income taxes and share of (losses) earnings in equity method investments | | | | | 14 | | | | | | 164 | | | | | | (150) | | | | | | (91) | | | ||||
Provision for income taxes | | | | | (8) | | | | | | (11) | | | | | | 3 | | | | | | 22 | | | ||||
Share of (losses) earnings in equity method investments | | | | | (1) | | | | | | 2 | | | | | | (3) | | | | | | (118) | | | ||||
Net income | | | | $ | 5 | | | | | $ | 155 | | | | | $ | (150) | | | | | | (97) | | | ||||
|
| | | Three Months Ended March 31, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2016 | | | 2015 | | | $ | | | % | | ||||||||||||
Net revenue | | | | $ | 609,263 | | | | | $ | 572,128 | | | | | $ | 37,135 | | | | | | 6 | | |
Costs and expenses | | | | | | ||||||||||||||||||||
Cost of revenue | | | | | 362,677 | | | | | | 349,231 | | | | | | 13,446 | | | | | | 4 | | |
Selling, general and administrative | | | | | 114,477 | | | | | | 128,120 | | | | | | (13,643) | | | | | | (11) | | |
Depreciation and amortization | | | | | 52,241 | | | | | | 61,028 | | | | | | (8,787) | | | | | | (14) | | |
Total costs and expenses | | | | | 529,395 | | | | | | 538,379 | | | | | | (8,984) | | | | | | (2) | | |
Operating income | | | | | 79,868 | | | | | | 33,749 | | | | | | 46,119 | | | | | | 137 | | |
Interest expense, net | | | | | (54,895) | | | | | | (39,389) | | | | | | (15,506) | | | | | | (39) | | |
Gain on sale of shares of Orbitz Worldwide | | | | | — | | | | | | 6,271 | | | | | | (6,271) | | | | | | (100) | | |
Income before income taxes and share of earnings in equity method investment | | | | | 24,973 | | | | | | 631 | | | | | | 24,342 | | | | | | * | | |
Provision for income taxes | | | | | (7,792) | | | | | | (7,758) | | | | | | (34) | | | | | | * | | |
Share of earnings in equity method investment | | | | | — | | | | | | 19 | | | | | | (19) | | | | | | (100) | | |
Net income (loss) | | | | $ | 17,181 | | | | | $ | (7,108) | | | | | $ | 24,289 | | | | | | * | | |
|
| | Three Months Ended September 30, | | Change | | | Three Months Ended March 31, | | Change | | ||||||||||||||||||||||||||||||||||||||||
(in $ millions) | | 2015 | | 2014 | | $ | | % | | |||||||||||||||||||||||||||||||||||||||||
(in $ thousands ) | | 2016 | | 2015 | | $ | | % | | |||||||||||||||||||||||||||||||||||||||||
Air | | | $ | 399 | | | | $ | 390 | | | | $ | 9 | | | | | 2 | | | | | $ | 443,884 | | | | $ | 431,521 | | | | $ | 12,363 | | | | | 3 | | | ||||||||
Beyond Air | | | | 129 | | | | | 111 | | | | | 18 | | | | | 17 | | | | | | 135,002 | | | | | 110,120 | | | | | 24,882 | | | | | 23 | | | ||||||||
Travel Commerce Platform | | | | 528 | | | | | 501 | | | | | 27 | | | | | 5 | | | | | | 578,886 | | | | | 541,641 | | | | | 37,245 | | | | | 7 | | | ||||||||
Technology Services | | | | 32 | | | | | 28 | | | | | 4 | | | | | 14 | | | | | | 30,377 | | | | | 30,487 | | | | | (110) | | | | | — | | | ||||||||
Net Revenue | | | $ | 560 | | | | $ | 529 | | | | $ | 31 | | | | | 6 | | | |||||||||||||||||||||||||||||
Net revenue | | | $ | 609,263 | | | | $ | 572,128 | | | | $ | 37,135 | | | | | 6 | | | |
| | Three Months Ended September 30, | | Change | | | Three Months Ended March 31, | | Change | | ||||||||||||||||||||||||||||||||||||||||
| | 2015 | | 2014 | | | | | | | % | | | 2016 | | 2015 | | $ | | % | | |||||||||||||||||||||||||||||
Travel Commerce Platform RevPas (in $) | | | $ | 6.29 | | | | $ | 5.67 | | | | $ | 0.62 | | | | | 11 | | | | | $ | 6.43 | | | | $ | 5.73 | | | | $ | 0.70 | | | | | 12 | | | ||||||||
Reported Segments (in millions) | | | | 84 | | | | | 88 | | | | | (4) | | | | | (5) | | | |||||||||||||||||||||||||||||
Reported Segments (in thousands) | | | | 89,973 | | | | | 94,520 | | | | | (4,547) | | | | | (5) | | |
| | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||||||
(in $ millions) | | | 2015 | | | 2014 | | | $ | | | % | | ||||||||||||||||
Asia Pacific | | | | $ | 117 | | | | | $ | 103 | | | | | $ | 14 | | | | | | 14 | | | ||||
Europe | | | | | 159 | | | | | | 143 | | | | | | 16 | | | | | | 11 | | | ||||
Latin America and Canada | | | | | 27 | | | | | | 23 | | | | | | 4 | | | | | | 21 | | | ||||
Middle East and Africa | | | | | 72 | | | | | | 69 | | | | | | 3 | | | | | | 3 | | | ||||
International | | | | | 375 | | | | | | 338 | | | | | | 37 | | | | | | 11 | | | ||||
United States | | | | | 153 | | | | | | 163 | | | | | | (10) | | | | | | (6) | | | ||||
Travel Commerce Platform | | | | $ | 528 | | | | | $ | 501 | | | | | $ | 27 | | | | | | 5 | | | ||||
|
| | | Three Months Ended March 31, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2016 | | | 2015 | | | $ | | | % | | ||||||||||||
Asia Pacific | | | | $ | 128,495 | | | | | $ | 117,773 | | | | | $ | 10,722 | | | | | | 9 | | |
Europe | | | | | 194,847 | | | | | | 165,727 | | | | | | 29,120 | | | | | | 18 | | |
Latin America and Canada | | | | | 28,036 | | | | | | 23,761 | | | | | | 4,275 | | | | | | 18 | | |
Middle East and Africa | | | | | 73,450 | | | | | | 73,323 | | | | | | 127 | | | | | | — | | |
International | | | | | 424,828 | | | | | | 380,584 | | | | | | 44,244 | | | | | | 12 | | |
United States | | | | | 154,058 | | | | | | 161,057 | | | | | | (6,999) | | | | | | (4) | | |
Travel Commerce Platform | | | | $ | 578,886 | | | | | $ | 541,641 | | | | | $ | 37,245 | | | | | | 7 | | |
|
| | Segments (in millions) | | RevPas (in $) | | | Segments (in thousands) | | RevPas (in $) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Three Months Ended September 30, | | Change | | Three Months Ended September 30, | | Change | | | Three Months Ended March 31, | | Change | | Three Months Ended March 31, | | Change | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2015 | | 2014 | | | | | | | % | | 2015 | | 2014 | | $ | | % | | | 2016 | | 2015 | | | | | | | % | | 2016 | | 2015 | | $ | | % | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | | | | 16 | | | | | 14 | | | | | 2 | | | | | 7 | | | | $ | 7.32 | | | | $ | 6.87 | | | | $ | 0.45 | | | | | 7 | | | | | | 16,989 | | | | | 16,719 | | | | | 270 | | | | | 2 | | | | $ | 7.56 | | | | $ | 7.04 | | | | $ | 0.52 | | | | | 7 | | | ||||||||||||||||
Europe | | | | 19 | | | | | 20 | | | | | (1) | | | | | (2) | | | | $ | 8.20 | | | | $ | 7.20 | | | | $ | 1.00 | | | | | 14 | | | | | | 23,133 | | | | | 22,989 | | | | | 144 | | | | | 1 | | | | $ | 8.42 | | | | $ | 7.21 | | | | $ | 1.21 | | | | | 17 | | | ||||||||||||||||
Latin America and Canada | | | | 4 | | | | | 4 | | | | | — | | | | | 10 | | | | $ | 6.33 | | | | $ | 5.71 | | | | $ | 0.62 | | | | | 11 | | | | | | 4,550 | | | | | 4,271 | | | | | 279 | | | | | 7 | | | | $ | 6.16 | | | | $ | 5.56 | | | | $ | 0.60 | | | | | 11 | | | ||||||||||||||||
Middle East and Africa | | | | 10 | | | | | 10 | | | | | — | | | | | — | | | | $ | 7.47 | | | | $ | 7.27 | | | | $ | 0.20 | | | | | 3 | | | | | | 9,721 | | | | | 9,929 | | | | | (208) | | | | | (2) | | | | $ | 7.56 | | | | $ | 7.38 | | | | $ | 0.18 | | | | | 2 | | | ||||||||||||||||
International | | | | 49 | | | | | 48 | | | | | 1 | | | | | 2 | | | | $ | 7.61 | | | | $ | 6.99 | | | | $ | 0.62 | | | | | 9 | | | | | | 54,393 | | | | | 53,908 | | | | | 485 | | | | | 1 | | | | $ | 7.81 | | | | $ | 7.06 | | | | $ | 0.75 | | | | | 11 | | | ||||||||||||||||
United States | | | | 35 | | | | | 40 | | | | | (5) | | | | | (13) | | | | $ | 4.41 | | | | $ | 4.08 | | | | $ | 0.33 | | | | | 8 | | | | | | 35,580 | | | | | 40,612 | | | | | (5,032) | | | | | (12) | | | | $ | 4.33 | | | | $ | 3.97 | | | | $ | 0.36 | | | | | 9 | | | ||||||||||||||||
Travel Commerce Platform | | | | 84 | | | | | 88 | | | | | (4) | | | | | (5) | | | | $ | 6.29 | | | | $ | 5.67 | | | | $ | 0.62 | | | | | 11 | | | | | | 89,973 | | | | | 94,520 | | | | | (4,547) | | | | | (5) | | | | $ | 6.43 | | | | $ | 5.73 | | | | $ | 0.70 | | | | | 12 | | | |
| | Three Months Ended September 30, | | Change | | | Three Months Ended March 31, | | Change | | ||||||||||||||||||||||||||||||||||||||||
(in $ millions) | | 2015 | | 2014 | | $ | | % | | |||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | $ | | % | | |||||||||||||||||||||||||||||||||||||||||
Commissions | | | $ | 261 | | | | $ | 249 | | | | $ | 12 | | | | | 5 | | | | | $ | 282,042 | | | | $ | 270,069 | | | | $ | 11,973 | | | | | 4 | | | ||||||||
Technology costs | | | | 75 | | | | | 71 | | | | | 4 | | | | | 6 | | | | | | 80,635 | | | | | 79,162 | | | | | 1,473 | | | | | 2 | | | ||||||||
Cost of revenue | | | $ | 336 | | | | $ | 320 | | | | $ | 16 | | | | | 5 | | | | | $ | 362,677 | | | | $ | 349,231 | | | | $ | 13,446 | | | | | 4 | | | |
| | Three Months Ended September 30, | | Change | | | Three Months Ended March 31, | | Change | | ||||||||||||||||||||||||||||||||||||||||
(in $ millions) | | 2015 | | 2014 | | $ | | % | | |||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | $ | | % | | |||||||||||||||||||||||||||||||||||||||||
Workforce | | | $ | 78 | | | | $ | 76 | | | | $ | 2 | | | | | 4 | | | | | $ | 84,571 | | | | $ | 80,239 | | | | $ | 4,332 | | | | | 5 | | | ||||||||
Non-workforce | | | | 30 | | | | | 19 | | | | | 11 | | | | | 49 | | | | | | 24,449 | | | | | 23,529 | | | | | 920 | | | | | 4 | | | ||||||||
Sub-total | | | | 108 | | | | | 95 | | | | | 13 | | | | | 13 | | | | | | 109,020 | | | | | 103,768 | | | | | 5,252 | | | | | 5 | | | ||||||||
Non-core corporate costs | | | | 6 | | | | | 35 | | | | | (29) | | | | | (79) | | | | | | 5,457 | | | | | 24,352 | | | | | (18,895) | | | | | (78) | | | ||||||||
SG&A | | | $ | 114 | | | | $ | 130 | | | | $ | (16) | | | | | (12) | | | | | $ | 114,477 | | | | $ | 128,120 | | | | $ | (13,643) | | | | | (11) | | | |
| | | Three Months Ended March 31, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2016 | | | 2015 | | | $ | | | % | | ||||||||||||
Depreciation on property and equipment | | | | $ | 41,102 | | | | | $ | 42,405 | | | | | $ | (1,303) | | | | | | (3) | | |
Amortization of acquired intangible assets | | | | | 11,139 | | | | | | 18,623 | | | | | | (7,484) | | | | | | (40) | | |
Total depreciation and amortization | | | | $ | 52,241 | | | | | $ | 61,028 | | | | | $ | (8,787) | | | | | | (14) | | |
|
| | | Three Months Ended September 30, | | | Change | | ||||||||||||||||||||||
(in $ millions) | | | 2015 | | | 2014 | | | $ | | | % | | ||||||||||||||||
Depreciation on property and equipment | | | | $ | 38 | | | | | $ | 39 | | | | | $ | (1) | | | | | | (2) | | | ||||
Amortization of acquired intangible assets | | | | | 18 | | | | | | 19 | | | | | | (1) | | | | | | (6) | | | ||||
Total depreciation and amortization | | | | $ | 56 | | | | | $ | 58 | | | | | $ | (2) | | | | | | (4) | | | ||||
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||||||
(in $ millions) | | | 2015 | | | 2014 | | | $ | | | % | | ||||||||||||||||
Net revenue | | | | $ | 1,686 | | | | | $ | 1,652 | | | | | $ | 34 | | | | | | 2 | | | ||||
Costs and expenses | | | | | | ||||||||||||||||||||||||
Cost of revenue | | | | | 1,020 | | | | | | 1,010 | | | | | | 10 | | | | | | 1 | | | ||||
Selling, general and administrative | | | | | 340 | | | | | | 315 | | | | | | 25 | | | | | | 8 | | | ||||
Depreciation and amortization | | | | | 175 | | | | | | 171 | | | | | | 4 | | | | | | 3 | | | ||||
Total costs and expenses | | | | | 1,535 | | | | | | 1,496 | | | | | | 39 | | | | | | 3 | | | ||||
Operating income | | | | | 151 | | | | | | 156 | | | | | | (5) | | | | | | (4) | | | ||||
Interest expense, net | | | | | (118) | | | | | | (237) | | | | | | 119 | | | | | | 50 | | | ||||
Loss on early extinguishment of debt | | | | | — | | | | | | (108) | | | | | | 108 | | | | | | 100 | | | ||||
Gain on sale of shares of Orbitz Worldwide | | | | | 6 | | | | | | 356 | | | | | | (350) | | | | | | (98) | | | ||||
Income before income taxes and share of losses in equity method investments | | | | | 39 | | | | | | 167 | | | | | | (128) | | | | | | (77) | | | ||||
Provision for income taxes | | | | | (24) | | | | | | (33) | | | | | | 9 | | | | | | 27 | | | ||||
Share of losses in equity method investments | | | | | (1) | | | | | | (1) | | | | | | — | | | | | | — | | | ||||
Net income | | | | $ | 14 | | | | | $ | 133 | | | | | $ | (119) | | | | | | (89) | | | ||||
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||||||
(in $ millions) | | | 2015 | | | 2014 | | | $ | | | % | | ||||||||||||||||
Air | | | | $ | 1,231 | | | | | $ | 1,245 | | | | | $ | (14) | | | | | | (1) | | | ||||
Beyond Air | | | | | 361 | | | | | | 316 | | | | | | 45 | | | | | | 14 | | | ||||
Travel Commerce Platform | | | | | 1,592 | | | | | | 1,561 | | | | | | 31 | | | | | | 2 | | | ||||
Technology Services | | | | | 94 | | | | | | 91 | | | | | | 3 | | | | | | 4 | | | ||||
Net Revenue | | | | $ | 1,686 | | | | | $ | 1,652 | | | | | $ | 34 | | | | | | 2 | | | ||||
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||
| | | 2015 | | | 2014 | | | $ | | | % | | ||||||||||||
Travel Commerce Platform RevPas (in $) | | | | $ | 5.99 | | | | | $ | 5.68 | | | | | $ | 0.31 | | | | | | 6 | | |
Reported Segments (in millions) | | | | | 266 | | | | | | 275 | | | | | | (9) | | | | | | (3) | | |
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||||||
(in $ millions) | | | 2015 | | | 2014 | | | $ | | | % | | ||||||||||||||||
Asia Pacific | | | | $ | 350 | | | | | $ | 304 | | | | | $ | 46 | | | | | | 15 | | | ||||
Europe | | | | | 475 | | | | | | 476 | | | | | | (1) | | | | | | — | | | ||||
Latin America and Canada | | | | | 75 | | | | | | 68 | | | | | | 7 | | | | | | 11 | | | ||||
Middle East and Africa | | | | | 220 | | | | | | 216 | | | | | | 4 | | | | | | 2 | | | ||||
International | | | | | 1,120 | | | | | | 1,064 | | | | | | 56 | | | | | | 5 | | | ||||
United States | | | | | 472 | | | | | | 497 | | | | | | (25) | | | | | | (5) | | | ||||
Travel Commerce Platform | | | | $ | 1,592 | | | | | $ | 1,561 | | | | | $ | 31 | | | | | | 2 | | | ||||
|
| | | Segments (in millions) | | | RevPas (in $) | | ||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Nine Months Ended September 30, | | | Change | | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||||||||||||||||||||||||||||
| | | 2015 | | | 2014 | | | | | | | | | % | | | 2015 | | | 2014 | | | $ | | | % | | |||||||||||||||||||||||||||||
Asia Pacific | | | | | 49 | | | | | | 44 | | | | | | 5 | | | | | | 10 | | | | | $ | 7.18 | | | | | $ | 6.88 | | | | | $ | 0.30 | | | | | | 4 | | | ||||||||
Europe | | | | | 62 | | | | | | 67 | | | | | | (5) | | | | | | (7) | | | | | $ | 7.60 | | | | | $ | 7.09 | | | | | $ | 0.51 | | | | | | 7 | | | ||||||||
Latin America and Canada | | | | | 13 | | | | | | 12 | | | | | | 1 | | | | | | 10 | | | | | $ | 5.89 | | | | | $ | 5.80 | | | | | $ | 0.09 | | | | | | 2 | | | ||||||||
Middle East and Africa | | | | | 30 | | | | | | 30 | | | | | | — | | | | | | (1) | | | | | $ | 7.45 | | | | | $ | 7.23 | | | | | $ | 0.22 | | | | | | 3 | | | ||||||||
International | | | | | 154 | | | | | | 153 | | | | | | 1 | | | | | | — | | | | | $ | 7.30 | | | | | $ | 6.96 | | | | | $ | 0.34 | | | | | | 5 | | | ||||||||
United States | | | | | 112 | | | | | | 122 | | | | | | (10) | | | | | | (8) | | | | | $ | 4.21 | | | | | $ | 4.07 | | | | | $ | 0.14 | | | | | | 3 | | | ||||||||
Travel Commerce Platform | | | | | 266 | | | | | | 275 | | | | | | (9) | | | | | | (3) | | | | | $ | 5.99 | | | | | $ | 5.68 | | | | | $ | 0.31 | | | | | | 6 | | | ||||||||
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||||||
(in $ millions) | | | 2015 | | | 2014 | | | $ | | | % | | ||||||||||||||||
Commissions | | | | $ | 790 | | | | | $ | 784 | | | | | $ | 6 | | | | | | 1 | | | ||||
Technology costs | | | | | 230 | | | | | | 226 | | | | | | 4 | | | | | | 2 | | | ||||
Cost of revenue | | | | $ | 1,020 | | | | | $ | 1,010 | | | | | $ | 10 | | | | | | 1 | | | ||||
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||||||
(in $ millions) | | | 2015 | | | 2014 | | | $ | | | % | | ||||||||||||||||
Workforce | | | | $ | 230 | | | | | $ | 224 | | | | | $ | 6 | | | | | | 3 | | | ||||
Non-workforce | | | | | 82 | | | | | | 44 | | | | | | 38 | | | | | | 89 | | | ||||
Sub-total | | | | | 312 | | | | | | 268 | | | | | | 44 | | | | | | 17 | | | ||||
Non-core corporate costs | | | | | 28 | | | | | | 47 | | | | | | (19) | | | | | | (40) | | | ||||
SG&A | | | | $ | 340 | | | | | $ | 315 | | | | | $ | 25 | | | | | | 8 | | | ||||
|
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||||||
(in $ millions) | | | 2015 | | | 2014 | | | $ | | | % | | ||||||||||||||||
Depreciation on property and equipment | | | | $ | 119 | | | | | $ | 113 | | | | | $ | 6 | | | | | | 6 | | | ||||
Amortization of acquired intangible assets | | | | | 56 | | | | | | 58 | | | | | | (2) | | | | | | (4) | | | ||||
Total depreciation and amortization | | | | $ | 175 | | | | | $ | 171 | | | | | $ | 4 | | | | | | 3 | | | ||||
|
(in $ millions) | | | September 30, 2015 | | |||
Cash and cash equivalents | | | | $ | 101 | | |
Revolver availability | | | | | 101 | | |
(in $ thousands) | | | March 31, 2016 | | |||
Cash and cash equivalents | | | | $ | 127,993 | | |
Revolving credit facility availability | | | | | 101,314 | | |
| | Asset (Liability) | | | | | | | | Asset (Liability) | | | ||||||||||||||||||||||||||
(in $ millions) | | September 30, 2015 | | December 31, 2014 | | Change | | |||||||||||||||||||||||||||||||
Accounts Receivable, net | | | $ | 237 | | | | $ | 184 | | | | $ | 53 | | | ||||||||||||||||||||||
(in $ thousands) | | March 31, 2016 | | December 31, 2015 | | Change | | |||||||||||||||||||||||||||||||
Accounts receivable, net | | | $ | 253,728 | | | | $ | 205,686 | | | | $ | 48,042 | | | ||||||||||||||||||||||
Accrued commissions and incentives | | | | (280) | | | | | (260) | | | | | (20) | | | | | | (276,979) | | | | | (241,358) | | | | | (35,621) | | | ||||||
Deferred revenue and prepaid incentives, net | | | | (6) | | | | | (15) | | | | | 9 | | | | | | (18,172) | | | | | (9,340) | | | | | (8,832) | | | ||||||
Trading Working Capital | | | | (49) | | | | | (91) | | | | | 42 | | | ||||||||||||||||||||||
Cash and cash equivalents | | | | 101 | | | | | 139 | | | | | (38) | | | | | | 127,993 | | | | | 154,841 | | | | | (26,848) | | | ||||||
Accounts payable and employee related | | | | (133) | | | | | (132) | | | | | (1) | | | | | | (139,622) | | | | | (153,349) | | | | | 13,727 | | | ||||||
Accrued interest | | | | (18) | | | | | (18) | | | | | — | | | | | | (17,221) | | | | | (18,800) | | | | | 1,579 | | | ||||||
Current portion of long-term debt | | | | (67) | | | | | (56) | | | | | (11) | | | | | | (62,484) | | | | | (74,163) | | | | | 11,679 | | | ||||||
Taxes | | | | 13 | | | | | 17 | | | | | (4) | | | | | | 14,585 | | | | | 16,850 | | | | | (2,265) | | | ||||||
Other assets (liabilities), net | | | | 16 | | | | | (2) | | | | | 18 | | | | | | 33,816 | | | | | 5,684 | | | | | 28,132 | | | ||||||
Working Capital | | | $ | (137) | | | | $ | (143) | | | | $ | 6 | | | | | $ | (84,356) | | | | $ | (113,949) | | | | $ | 29,593 | | | ||||||
Consolidated Balance Sheets: | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Total current assets | | | $ | 457 | | | | $ | 412 | | | | $ | 45 | | | | | $ | 528,392 | | | | $ | 465,141 | | | | $ | 63,251 | | | ||||||
Total current liabilities | | | | (594) | | | | | (555) | | | | | (39) | | | | | | (612,748) | | | | | (579,090) | | | | | (33,658) | | | ||||||
Working Capital | | | $ | (137) | | | | $ | (143) | | | | $ | 6 | | | | | $ | (84,356) | | | | $ | (113,949) | | | | $ | 29,593 | | | |
| | September 30, 2015 | | December 31, 2014 | | Change | | | March 31, 2016 | | December 31, 2015 | | Change | | ||||||||||||||||||||||||
Accounts receivable, net (in $ millions) | | | $ | 237 | | | | $ | 184 | | | | $ | 53 | | | ||||||||||||||||||||||
Accounts receivable, net (in $ thousands) | | | $ | 253,728 | | | | $ | 205,686 | | | | $ | 48,042 | | | ||||||||||||||||||||||
Accounts receivable, net – Days Sales Outstanding (“DSO”) | | | | 38 | | | | | 37 | | | | | 1 | | | | | | 38 | | | | | 38 | | | | | — | | |
| | Nine Months Ended September 30, | | Change | | Three Months Ended March 31, | | Change | | |||||||||||||||||||||||||||
(in $ millions) | | 2015 | | 2014 | | $ | ||||||||||||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | $ | | |||||||||||||||||||||||||||||
Cash provided by (used in): | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Operating activities | | | $ | 154 | | | | $ | (11) | | | | $ | 165 | | | $ | 26,204 | | | | $ | 11,019 | | | | $ | 15,185 | | | ||||||
Investing activities | | | | (131) | | | | | 263 | | | | | (394) | | | | (22,521) | | | | | (20,813) | | | | | (1,708) | | | ||||||
Financing activities | | | | (60) | | | | | (280) | | | | | 220 | | | | (31,039) | | | | | (20,821) | | | | | (10,218) | | | ||||||
Effect of exchange rate changes | | | | (1) | | | | | (1) | | | | | — | | | | 508 | | | | | (973) | | | | | 1,481 | | | ||||||
Net decrease in cash and cash equivalents | | | $ | (38) | | | | $ | (29) | | | | $ | (9) | | | $ | (26,848) | | | | $ | (31,588) | | | | $ | 4,740 | | | |
| | Nine Months Ended September 30, | | | Three Months Ended March 31, | | ||||||||||||||||||||
(in $ millions) | | 2015 | | 2014 | | |||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | |||||||||||||||||||||
Adjusted EBITDA | | | $ | 405 | | | | $ | 430 | | | | | $ | 154,140 | | | | $ | 137,458 | | | ||||
Interest payments | | | | (109) | | | | | (263) | | | | | | (37,480) | | | | | (37,901) | | | ||||
Tax payments | | | | (18) | | | | | (19) | | | | | | (4,549) | | | | | (7,263) | | | ||||
Customer loyalty payments | | | | (56) | | | | | (66) | | | | | | (25,307) | | | | | (23,400) | | | ||||
Changes in Trading Working Capital | | | | (36) | | | | | (34) | | | |||||||||||||||
Changes in accounts payable and employee related payables | | | | 1 | | | | | (19) | | | |||||||||||||||
Changes in working capital | | | | (49,048) | | | | | (50,588) | | | |||||||||||||||
Pensions liability contribution | | | | (2) | | | | | (5) | | | | | | (1,118) | | | | | (672) | | | ||||
Changes in other assets and liabilities | | | | (19) | | | | | 2 | | | | | | (7,108) | | | | | (3,512) | | | ||||
Other adjusting items(1) | | | | (12) | | | | | (37) | | | | | | (3,326) | | | | | (3,103) | | | ||||
Net cash provided by (used in) operating activities | | | | 154 | | | | | (11) | | | |||||||||||||||
Net cash provided by operating activities | | | | 26,204 | | | | | 11,019 | | | |||||||||||||||
Add: other adjusting items(1) | | | | 12 | | | | | 37 | | | | | | 3,326 | | | | | 3,103 | | | ||||
Less: capital expenditures on property and equipment additions | | | | (76) | | | | | (83) | | | | | | (22,521) | | | | | (27,084) | | | ||||
Less: repayment of capital lease obligations and other indebtedness | | | | (26) | | | | | (23) | | | | | | (12,079) | | | | | (8,056) | | | ||||
Adjusted Free Cash Flow | | | | 64 | | | | | (80) | | | | | $ | (5,070) | | | | $ | (21,018) | | | ||||
Add: interest paid | | | | 109 | | | | | 263 | | | |||||||||||||||
Unlevered Adjusted Free Cash Flow | | | $ | 173 | | | | $ | 183 | | | |
| | Nine Months Ended September 30, | | | Three Months Ended March 31, | | ||||||||||||||||||||
(in $ millions) | | 2015 | | 2014 | | |||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | |||||||||||||||||||||
Cash additions to software developed for internal use | | | $ | 57 | | | | $ | 63 | | | | | $ | 18,558 | | | | $ | 17,742 | | | ||||
Cash additions to computer equipment | | | | 19 | | | | | 20 | | | | | | 3,963 | | | | | 9,342 | | | ||||
Total | | | $ | 76 | | | | $ | 83 | | | | | $ | 22,521 | | | | $ | 27,084 | | | |
(in $ millions) | | Interest rate | | Maturity | | September 30, 2015 | | December 31, 2014 | | |||||||||||||||||||||||||||||
(in $ thousands) | | Interest rate | | Maturity | | March 31, 2016 | | December 31, 2015 | | |||||||||||||||||||||||||||||
Senior Secured Credit Agreement | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Term loans | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Dollar denominated | | L+4.75% | | September 2021 | | | $ | 2,332 | | | | $ | 2,347 | | | | L+4.75% | | September 2021 | | | $ | 2,296,034 | | | | $ | 2,303,315 | | | ||||||||
Revolver borrowings | | | | | | | ||||||||||||||||||||||||||||||||
Dollar denominated | | L+5.00% | | September 2019 | | | | — | | | | | — | | | | L+5.00% | | September 2019 | | | | — | | | | | — | | | ||||||||
Capital leases and other indebtedness | | | | | | | | 140 | | | | | 93 | | | | | | | | | | 128,655 | | | | | 133,883 | | | ||||||||
Total debt | | | | | | | | 2,472 | | | | | 2,440 | | | | | | | | | $ | 2,424,689 | | | | $ | 2,437,198 | | | ||||||||
Less: cash and cash equivalents | | | | | | | | (101) | | | | | (139) | | | | | | | | | | (127,993) | | | | | (154,841) | | | ||||||||
Less: cash held as collateral | | | | | | | | — | | | | | (26) | | | |||||||||||||||||||||||
Net Debt(2) | | | | | | | $ | 2,371 | | | | $ | 2,275 | | | |||||||||||||||||||||||
Net Debt(3) | | | | | | | $ | 2,296,696 | | | | $ | 2,282,357 | | | |
| | | | TRAVELPORT WORLDWIDE LIMITED | |
| Date: | | | By: /s/ Executive Vice President and Chief Financial Officer | |
| Date: | | | By: /s/ Antonios Basoukeas Chief Accounting Officer | |
| Exhibit No. | | | Description | |
| 3.1 | | | Amended and Restated Memorandum of Association of Travelport Worldwide Limited (Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by Travelport Worldwide Limited on September 30, 2014). | |
| 3.2 | | | Amended and Restated Bye-laws of Travelport Worldwide Limited (Incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed by Travelport Worldwide Limited on September 30, 2014). | |
| | | | ||
| 10.2 | | | Form of 2016 Travelport Worldwide Limited Management Equity Award Agreement (UK Named Executive Officers) | |
| 31.1 | | | Certification of Chief Executive Officer Pursuant to Rules 13(a)-14(a) and 15(d)-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 31.2 | | | Certification of Chief Financial Officer Pursuant to Rules 13(a)-14(a) and 15(d)-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32 | | | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 101.INS | | | XBRL Instance Document | |
| 101.SCH | | | XBRL Taxonomy Extension Schema Document | |
| 101.CAL | | | XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.LAB | | | XBRL Taxonomy Extension Labels Linkbase Document | |
| 101.PRE | | | XBRL Taxonomy Extension Presentation Linkbase Document | |
| 101.DEF | | | XBRL Taxonomy Extension Definition Linkbase Document | |