Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2014 | |
Document And Entity Information [Abstract] | |
Document Type | S-1 |
Amendment Flag | FALSE |
Document Period End Date | 30-Sep-14 |
Trading Symbol | SABR |
Entity Registrant Name | SABRE CORP |
Entity Central Index Key | 1597033 |
Entity Filer Category | Non-accelerated Filer |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Income Statement [Abstract] | |||||||||||
Revenue | $756,303 | $775,823 | $2,229,286 | $2,303,399 | $3,049,525 | $2,974,364 | $2,855,961 | ||||
Cost of revenue | 465,689 | [1],[2] | 474,090 | [1],[2] | 1,399,919 | [1],[2] | 1,423,242 | [1],[2] | 1,904,850 | 1,819,235 | 1,736,041 |
Selling, general and administrative | 169,183 | [2] | 208,033 | [2] | 575,413 | [2] | 620,226 | [2] | 792,929 | 1,188,248 | 806,435 |
Impairment | 2,837 | 138,435 | 138,435 | 573,180 | 185,240 | ||||||
Restructuring Charges | 4,735 | 15,889 | 2,325 | 15,889 | 36,551 | ||||||
Operating income (loss) | 116,696 | 74,974 | 251,629 | 105,607 | 176,760 | -606,299 | 128,245 | ||||
Other income (expense): | |||||||||||
Interest expense, net | -50,153 | -63,454 | -167,332 | -209,653 | -274,689 | -232,450 | -174,390 | ||||
Loss on extinguishment of debt | -33,538 | -12,181 | -12,181 | ||||||||
Gain on sale of business | 25,850 | ||||||||||
Joint venture equity income | 2,867 | 1,841 | 9,367 | 7,873 | 15,554 | 24,487 | 26,701 | ||||
Joint venture goodwill impairment and intangible amortization | -3,204 | -27,000 | -3,200 | ||||||||
Other, net | 565 | -2,429 | 760 | -1,099 | -6,724 | -1,385 | 1,156 | ||||
Total other expense, net | -46,721 | -64,042 | -190,743 | -215,060 | -281,244 | -210,498 | -149,733 | ||||
Income (loss) from continuing operations before income taxes | 69,975 | 10,932 | 60,886 | -109,453 | -104,484 | -816,797 | -21,488 | ||||
(Benefit) provision for income taxes | 30,956 | 7,861 | 27,878 | -5,229 | -14,029 | -195,071 | 57,806 | ||||
Income (loss) from continuing operations | 39,019 | 3,071 | 33,008 | -104,224 | -90,455 | -621,726 | -79,294 | ||||
(Loss) income from discontinued operations, net of tax | -1,736 | 3,015 | -8,017 | -20,895 | -7,176 | -48,947 | -23,461 | ||||
Net income (loss) | 37,283 | 6,086 | 24,991 | -125,119 | -97,631 | -670,673 | -102,755 | ||||
Net income (loss) attributable to noncontrolling interests | 720 | 714 | 2,168 | 2,135 | 2,863 | -59,317 | -36,681 | ||||
Net income (loss) attributable to Sabre Corporation | 36,563 | 5,372 | 22,823 | -127,254 | -100,494 | -611,356 | -66,074 | ||||
Preferred stock dividends | 9,242 | 11,381 | 27,219 | 36,704 | 34,583 | 32,579 | |||||
Net income (loss) attributable to common shareholders | $36,563 | ($3,870) | $11,442 | ($154,473) | ($137,198) | ($645,939) | ($98,653) | ||||
Basic net income (loss) per share attributable to common shareholders: | |||||||||||
Income (loss) from continuing operations | $0.14 | ($0.04) | $0.08 | ($0.75) | |||||||
(Loss) income from discontinued operations | ($0.01) | $0.02 | ($0.03) | ($0.12) | |||||||
Net income (loss) per common share | $0.14 | ($0.02) | $0.05 | ($0.87) | |||||||
Basic and diluted loss per share: | |||||||||||
Continuing operations | ($0.73) | ($3.37) | ($0.43) | ||||||||
Discontinued operations | ($0.04) | ($0.28) | ($0.13) | ||||||||
Basic and diluted loss per share attributable to common shareholders | ($0.77) | ($3.65) | ($0.56) | ||||||||
Basic and diluted weighted average common shares outstanding | 178,125 | 177,206 | 176,703 | ||||||||
Diluted net income (loss) per share attributable to common shareholders: | |||||||||||
Income (loss) from continuing operations | $0.14 | ($0.04) | $0.08 | ($0.75) | |||||||
(Loss) income from discontinued operations | ($0.01) | $0.02 | ($0.03) | ($0.12) | |||||||
Net income (loss) per common share | $0.13 | ($0.02) | $0.05 | ($0.87) | |||||||
Weighted average common shares outstanding: | |||||||||||
Basic | 264,768 | 178,140 | 229,405 | 178,051 | |||||||
Diluted | 273,330 | 178,140 | 237,994 | 178,051 | |||||||
Dividends per common share | $0.09 | $0.09 | |||||||||
[1] | Includes amortization of upfront incentive consideration $ 36,649 $ 36,527 $ 37,748 | ||||||||||
[2] | Includes stock-based compensation as follows: Cost of revenue $ 1,702 $ 1,715 $ 1,454 Selling, general and administrative 7,384 8,119 5,880 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amortization of upfront incentive consideration | $10,388 | $9,385 | $33,177 | $28,736 | $36,649 | $36,527 | $37,748 |
Stock-based compensation expense | 22,434 | 5,446 | 9,086 | 9,834 | 7,334 | ||
Cost of revenue [Member] | |||||||
Stock-based compensation expense | 2,172 | 544 | 5,618 | 816 | 1,702 | 1,715 | 1,454 |
Selling, general and administrative [Member] | |||||||
Stock-based compensation expense | $3,300 | $2,142 | $16,816 | $4,630 | $7,384 | $8,119 | $5,880 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Statement of Comprehensive Income [Abstract] | |||||||||
Net income (loss) | $37,283 | $6,086 | $24,991 | ($125,119) | ($97,631) | ($670,673) | ($102,755) | ||
Foreign currency translation adjustments ("CTA"): | |||||||||
Foreign CTA gains (losses), net of tax | 1,522 | -612 | 3,711 | -276 | |||||
Reclassification adjustment for realized losses on foreign CTA, net of tax | 8,162 | 8,162 | [1] | 888 | [1] | ||||
Net change in foreign CTA gains (losses), net of tax | 1,522 | -612 | 3,711 | 7,886 | 13,116 | -2,125 | 1,681 | ||
Retirement-related benefit plans: | |||||||||
Amortization of prior service credits, net of taxes | -229 | -2,405 | -686 | -6,596 | |||||
Amortization of actuarial losses, net of taxes | 803 | 955 | 2,292 | 2,615 | |||||
Total retirement-related benefit plans | 574 | -1,450 | 1,606 | -3,981 | -5,409 | -6,716 | -7,285 | ||
Change in defined benefit pension and other post retirement benefit plans | 22,396 | -33,521 | -28,366 | ||||||
Derivatives: | |||||||||
Unrealized gains (losses), net of taxes | -3,799 | 2,752 | -3,181 | 564 | |||||
Reclassification adjustment for realized losses, net of taxes | 1,684 | 2,703 | 2,747 | 6,312 | |||||
Change in unrealized gain (loss) on foreign contracts and interest rate swaps currency forward | -2,115 | 5,455 | -434 | 6,876 | 11,538 | 19,465 | -3,927 | ||
Change in other | 3,420 | -1,415 | -2,794 | -3,353 | |||||
Other comprehensive (loss) income | -19 | 3,393 | 8,303 | 10,781 | 45,635 | -18,975 | -33,965 | ||
Comprehensive income (loss) | 37,264 | 9,479 | 33,294 | -114,338 | -51,996 | -689,648 | -136,720 | ||
Less: Comprehensive (income) loss attributable to noncontrolling interests | -720 | -714 | -2,168 | -2,135 | -2,863 | 59,317 | 36,681 | ||
Comprehensive income (loss) attributable to Sabre Corporation | $36,544 | $8,765 | $31,126 | ($116,473) | ($54,859) | ($630,331) | ($100,039) | ||
[1] | Relates to the dispositions of Zuji in 2013 and TravelGuru and Sabre Pacific in 2012. See Note 4, Discontinued Operations and Dispositions. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ||||
Amortization of prior service credits, taxes | $129 | $1,041 | $386 | $3,740 |
Amortization of actuarial losses, taxes | -454 | -414 | -1,299 | -1,482 |
Unrealized gains (losses) on derivatives, taxes | 1,096 | -1,311 | 666 | -484 |
Reclassification adjustment for realized losses, taxes | ($1,057) | ($1,615) | ($2,607) | ($4,079) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Current assets | |||
Cash and cash equivalents | $157,747 | $308,236 | $126,695 |
Restricted cash | 755 | 2,359 | 4,440 |
Accounts receivable, net | 466,753 | 434,288 | 417,240 |
Prepaid expenses and other current assets | 56,315 | 53,378 | 46,020 |
Current deferred income taxes | 39,184 | 41,431 | 32,938 |
Other receivables, net | 28,902 | 29,511 | 42,334 |
Assets of discontinued operations | 9,364 | 13,624 | 87,003 |
Total current assets | 759,020 | 882,827 | 756,670 |
Property and equipment, net | 526,722 | 498,523 | 408,396 |
Investments in joint ventures | 142,639 | 132,082 | 131,708 |
Goodwill | 2,152,590 | 2,138,175 | 2,282,671 |
Finite lived intangible assets, net | 634,558 | 775,254 | |
Other assets, net | 522,397 | 469,543 | 356,546 |
Total assets | 4,672,394 | 4,755,708 | 4,711,245 |
Current liabilities | |||
Accounts payable | 129,555 | 111,386 | 124,893 |
Travel supplier liabilities and related deferred revenue | 107,409 | 213,504 | 218,023 |
Accrued compensation and related benefits | 91,700 | 117,689 | 89,439 |
Accrued subscriber incentives | 168,019 | 142,767 | 127,099 |
Deferred revenues | 176,990 | 136,380 | 137,614 |
Litigation settlement liability and related deferred revenue | 75,409 | 38,920 | 117,873 |
Other accrued liabilities | 210,196 | 267,867 | 245,633 |
Current portion of debt | 22,418 | 86,117 | 23,232 |
Liabilities of discontinued operations | 23,881 | 41,788 | 101,433 |
Total current liabilities | 1,005,577 | 1,156,418 | 1,185,239 |
Deferred income taxes | 8,601 | 10,253 | 13,653 |
Other noncurrent liabilities | 523,728 | 263,182 | 370,162 |
Long-term debt | 3,065,440 | 3,643,548 | 3,420,927 |
Commitments and contingencies | |||
Temporary equity | |||
Series A Redeemable Preferred Stock | 634,843 | 598,139 | |
Stockholders' equity (deficit) | |||
Common Stock | 2,652 | 1,786 | 1,779 |
Additional paid-in capital | 1,911,172 | 880,619 | 865,144 |
Treasury Stock, at cost, 437,386 shares at September 30, 2014 | -5,297 | ||
Retained deficit | -1,797,944 | -1,785,554 | -1,648,356 |
Accumulated other comprehensive loss | -41,592 | -49,895 | -95,530 |
Noncontrolling interest | 57 | 508 | 88 |
Total stockholders' equity (deficit) | 69,048 | -952,536 | -876,875 |
Total liabilities, temporary equity and stockholders' equity (deficit) | 4,672,394 | 4,755,708 | 4,711,245 |
Trademarks And Brand Names [Member] | |||
Current assets | |||
Finite lived intangible assets, net | 307,445 | 323,035 | 343,233 |
Acquired customer relationships [Member] | |||
Current assets | |||
Finite lived intangible assets, net | 221,266 | 286,532 | |
Other intangible assets [Member] | |||
Current assets | |||
Finite lived intangible assets, net | 90,257 | 145,489 | |
Customer Relationships And Other Intangibles [Member] | |||
Current assets | |||
Finite lived intangible assets, net | $261,581 | $311,523 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated depreciation on property and equipment | $824,146 | $722,916 |
Accumulated Amortization | 1,435,501 | |
Series A Redeemable Preferred Stock, Par value | $0.01 | $0.01 |
Series A Redeemable Preferred Stock, Shares authorized | 225,000,000 | 225,000,000 |
Series A Redeemable Preferred Stock, Shares issued | 0 | 87,229,703 |
Series A Redeemable Preferred Stock Shares outstanding | 0 | 87,184,179 |
Class A Common Stock, Par value | $0.01 | $0.01 |
Class A Common Stock, Shares authorized | 450,000,000 | 450,000,000 |
Class A Common Stock, Shares issued | 265,224,958 | 178,633,409 |
Class A Common Stock, Shares outstanding | 264,787,572 | 178,491,568 |
Treasury Stock, shares held | 437,386 | |
Trademarks And Brand Names [Member] | ||
Accumulated Amortization | 554,286 | 545,597 |
Customer Relationships And Other Intangibles [Member] | ||
Accumulated Amortization | $956,606 | $889,904 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities | |||||
Net income (loss) | $24,991 | ($125,119) | ($97,631) | ($670,673) | ($102,755) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||
Depreciation and amortization | 230,461 | 230,277 | 307,595 | 315,733 | 293,117 |
Litigation related (gains) charges | -6,132 | 6,117 | 8,156 | 345,048 | |
Impairment | 138,435 | 138,435 | 573,180 | 185,240 | |
Restructuring charges | 3,247 | 4,089 | 4,089 | ||
(Gain) Loss on sale of business assets | -25,850 | ||||
Amortization of upfront incentive consideration | 33,177 | 28,736 | 36,649 | 36,527 | 37,748 |
Stock-based compensation expense | 22,434 | 5,446 | 9,086 | 9,834 | 7,334 |
Allowance for doubtful accounts | 6,371 | 7,583 | 9,439 | 4,328 | 3,467 |
Deferred income taxes | 6,232 | -19,357 | -64,690 | -232,273 | 34,409 |
Joint venture equity income | -9,367 | -7,873 | -15,554 | -24,487 | -26,701 |
Joint venture goodwill impairment and intangible amortization | 3,204 | 27,000 | 3,200 | ||
Dividends received from joint venture investments | 2,205 | 10,560 | 21,076 | 13,343 | |
Amortization of debt issuance costs | 4,779 | 5,323 | 7,104 | 23,265 | 12,539 |
Debt modification costs | 3,290 | 14,003 | 14,003 | 7,600 | |
Loss on extinguishment of debt | 33,538 | 12,181 | 12,181 | ||
Other | 3,658 | -10,210 | -5,619 | -9,866 | -22,173 |
Loss from discontinued operations | 8,017 | 20,895 | 7,176 | 48,947 | 23,461 |
Changes in operating assets and liabilities: | |||||
Accounts and other receivables | -58,435 | -46,394 | -29,150 | -2,691 | -49,220 |
Prepaid expenses and other current assets | -10,612 | 7,314 | -4,480 | -3,374 | 8,680 |
Capitalized implementation costs | -27,602 | -48,686 | -58,814 | -78,543 | -59,109 |
Upfront incentive consideration | -31,633 | -26,634 | |||
Other assets | -58,120 | -63,389 | -64,259 | -8,704 | -52,817 |
Accrued compensation and related benefits | -23,104 | 7,361 | |||
Accounts payable and other accrued liabilities | -31,516 | 109,778 | -31,064 | 13,022 | 93,735 |
Pension and other postretirement benefits | -4,200 | 2,186 | -2,579 | -20,236 | -9,306 |
Cash provided by operating activities | 121,679 | 252,062 | 157,188 | 312,336 | 356,444 |
Investing Activities | |||||
Additions to property and equipment | -160,385 | -168,744 | -226,026 | -193,262 | -164,638 |
Acquisition, net of cash acquired | -31,799 | -30,476 | -30,200 | -72,441 | -11,338 |
Proceeds from sale of assets and businesses | 10,000 | 10,000 | 27,915 | ||
Proceeds from sale of equity securities | 6,355 | ||||
Other investing activities | 235 | -276 | -4,601 | -284 | |
Cash used in investing activities | -191,949 | -189,220 | -246,502 | -236,034 | -176,260 |
Financing Activities | |||||
Proceeds of borrowings from lenders | 148,307 | 2,540,063 | 2,540,063 | 2,225,082 | |
Payments on borrowings from lenders | -797,028 | -2,239,538 | -2,261,061 | -2,924,745 | -30,150 |
Proceeds from borrowings on revolving credit facility | 518,200 | 1,007,100 | |||
Proceeds from issuance of common stock in initial public offering, net | 672,137 | ||||
Payments on borrowings under revolving credit facility | -600,200 | -925,100 | |||
Prepayment fee and debt modification and issuance costs | -30,490 | -19,116 | |||
Proceeds of borrowings under secured notes | 801,500 | ||||
Acquisition-related contingent consideration paid | -27,000 | ||||
Payments on borrowings under unsecured notes | -324,188 | ||||
Dividends paid to common shareholders | -23,831 | ||||
Debt issuance costs | -19,116 | -43,275 | |||
Proceeds from exercise of stock options | 3,073 | 2,696 | 1,202 | ||
Dividends paid | -2,443 | -2,214 | -1,843 | ||
Decrease (increase) in restricted cash | 2,081 | 4,346 | -5,342 | ||
Other financing activities | -1,384 | -6,692 | -425 | -6,510 | 6,781 |
Cash (used in) provided by financing activities | -59,289 | 274,717 | 262,172 | -25,120 | -271,540 |
Cash Flows from Discontinued Operations | |||||
Net cash (used in) provided by operating activities | -25,424 | 6,352 | -14,096 | -6,582 | -25,241 |
Net cash provided by (used in) investing activities | 3,760 | 20,502 | -6 | 270 | -4,550 |
Proceeds from sale, net of cash sold | 20,502 | 19,157 | |||
Net cash (used in) provided by discontinued operations | -21,664 | 26,854 | 6,400 | 12,845 | -29,791 |
Effect of exchange rate changes on cash and cash equivalents | 734 | 480 | 2,283 | 4,318 | 2,976 |
(Decrease) increase in cash and cash equivalents | -150,489 | 364,893 | 181,541 | 68,345 | -118,171 |
Cash and cash equivalents at beginning of period | 308,236 | 126,695 | 126,695 | 58,350 | 176,521 |
Cash and cash equivalents at end of period | 157,747 | 491,588 | 308,236 | 126,695 | 58,350 |
Cash payments for income taxes | 4,224 | 20,177 | 32,491 | ||
Cash payments for interest | 255,620 | 264,990 | 184,449 | ||
Capitalized interest | 10,966 | 8,705 | 6,899 | ||
Preferred shares dividend | $36,704 | $34,583 | $32,579 |
CONSOLIDATED_STATEMENTS_OF_TEM
CONSOLIDATED STATEMENTS OF TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Total | Series A- Redeemable Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data | |||||||
Temporary equity, Beginning balance at Dec. 31, 2010 | $530,977 | ||||||
Stockholders' equity equity, beginning balance at Dec. 31, 2010 | -34,741 | 1,766 | 890,016 | -903,764 | -42,590 | 19,831 | |
Temporary equity, Beginning balance, shares at Dec. 31, 2010 | 87,229,703 | ||||||
Stockholders' equity equity, beginning balance at Dec. 31, 2010 | 176,633,134 | ||||||
Comprehensive loss | -136,720 | -66,074 | -33,965 | -36,681 | |||
Accrued preferred shares dividend | -32,579 | 32,579 | -32,579 | ||||
Amortization of stock-based compensation | 7,334 | 7,334 | |||||
Settlement of stock-based awards | 1,202 | 3 | 1,199 | ||||
Settlement of stock-based awards, in shares | 255,686 | ||||||
Dividends paid to noncontrolling interest on subsidiary common stock | -1,843 | -1,843 | |||||
Other | 428 | 428 | |||||
Temporary equity, Ending balance at Dec. 31, 2011 | 563,556 | ||||||
Stockholders' equity equity, ending balance at Dec. 31, 2011 | -196,919 | 1,769 | 898,977 | -1,002,417 | -76,555 | -18,693 | |
Temporary equity, Ending balance, shares at Dec. 31, 2011 | 87,229,703 | ||||||
Stockholders' equity, ending balance, shares at Dec. 31, 2011 | 176,888,820 | ||||||
Comprehensive loss | -689,648 | -611,356 | -18,975 | -59,317 | |||
Accrued preferred shares dividend | -34,583 | 34,583 | -34,583 | ||||
Amortization of stock-based compensation | 6,859 | 6,859 | |||||
Settlement of stock-based awards | 2,696 | 8 | 2,688 | ||||
Settlement of stock-based awards, in shares | 828,311 | ||||||
Dividends paid to noncontrolling interest on subsidiary common stock | -2,214 | -2,214 | |||||
Re-acquisition of non- controlling interest | -1,736 | 2 | -41,941 | 40,203 | |||
Re-acquisition of non- controlling interest, in shares | 194,791 | ||||||
Other | -1,439 | -1,439 | |||||
Sale of controlling interest in Sabre Pacific | 40,109 | 40,109 | |||||
Temporary equity, Ending balance at Dec. 31, 2012 | 598,139 | 598,139 | |||||
Stockholders' equity equity, ending balance at Dec. 31, 2012 | -876,875 | 1,779 | 865,144 | -1,648,356 | -95,530 | 88 | |
Temporary equity, Ending balance, shares at Dec. 31, 2012 | 87,229,703 | 87,229,703 | |||||
Stockholders' equity, ending balance, shares at Dec. 31, 2012 | 177,911,922 | 177,911,922 | |||||
Comprehensive loss | -51,996 | -100,494 | 45,635 | 2,863 | |||
Accrued preferred shares dividend | -36,704 | 36,704 | -36,704 | ||||
Amortization of stock-based compensation | 7,564 | 7,564 | |||||
Settlement of stock-based awards | 7,918 | 7 | 7,911 | ||||
Settlement of stock-based awards, in shares | 721,487 | ||||||
Dividends paid to noncontrolling interest on subsidiary common stock | -2,443 | -2,443 | |||||
Temporary equity, Ending balance at Dec. 31, 2013 | 634,843 | 634,843 | |||||
Stockholders' equity equity, ending balance at Dec. 31, 2013 | ($952,536) | $1,786 | $880,619 | ($1,785,554) | ($49,895) | $508 | |
Temporary equity, Ending balance, shares at Dec. 31, 2013 | 87,229,703 | 87,229,703 | |||||
Stockholders' equity, ending balance, shares at Dec. 31, 2013 | 178,633,409 | 178,633,409 |
General_Information
General Information | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | ||
General Information | 1. General Information | 1. General Information |
Sabre Corporation is a Delaware corporation formed in December 2006. On March 30, 2007, Sabre Corporation acquired Sabre Holdings Corporation (“Sabre Holdings”). Sabre Holdings is the sole subsidiary of Sabre Corporation. Sabre GLBL Inc. is the principal operating subsidiary and sole direct subsidiary of Sabre Holdings. Sabre GLBL Inc. or its direct or indirect subsidiaries conduct all of our businesses. In these consolidated financial statements, references to “Sabre”, the “Company”, “we”, “our”, “ours” and “us” refer to Sabre Corporation and its consolidated subsidiaries unless otherwise stated or the context otherwise requires. | Sabre Corporation is a Delaware corporation formed in December 2006. On March 30, 2007, Sabre Corporation acquired Sabre Holdings Corporation (“Sabre Holdings”). Sabre Holdings is the sole subsidiary of Sabre Corporation. Sabre GLBL Inc. is the principal operating subsidiary and sole direct subsidiary of Sabre Holdings. Sabre GLBL Inc. or its direct or indirect subsidiaries conduct all of our businesses. In these consolidated financial statements, references to the “Company”, “we”, “our”, “ours” and “us” refer to Sabre Corporation and its consolidated subsidiaries unless otherwise stated or the context otherwise requires. | |
We are a leading technology solutions provider to the global travel and tourism industry. We operate through three business segments: (i) Travel Network, our global travel marketplace for travel suppliers and travel buyers, (ii) Airline and Hospitality Solutions, an extensive suite of travel industry leading software solutions primarily for airlines and hotel properties, and (iii) Travelocity, our portfolio of online consumer travel e-commerce businesses through which we provide travel content and booking functionality primarily for leisure travelers. | We are a leading technology solutions provider to the global travel and tourism industry. We operate through three business segments: (i) Travel Network, our global travel marketplace for travel suppliers and travel buyers, (ii) Airline and Hospitality Solutions, an extensive suite of travel industry leading software solutions primarily for airlines and hotel properties, and (iii) Travelocity, our portfolio of online consumer travel e-commerce businesses through which we provide travel content and booking functionality primarily for leisure travelers. | |
Initial Public Offering and Share-based Compensation—On April 23, 2014, we closed our initial public offering of our common stock in which we sold 39,200,000 shares, and on April 25, 2014, the underwriters exercised in full their overallotment option which resulted in the sale of an additional 5,880,000 shares of our common stock. Our shares of common stock were sold at an initial public offering price of $16.00 per share, which generated $672 million of net proceeds from the offering after deducting underwriting discounts and commissions and offering expenses. Upon closing of our initial public offering, we redeemed all of our outstanding shares of Series A Cumulative Preferred Stock in exchange for 40,343,529 shares of our common stock. | Travel Network | |
We used the net proceeds from this offering to repay (i) $296 million aggregate principal amount of our term loans and (ii) $320 million aggregate principal amount of our senior secured notes due in 2019 at a redemption price of 108.5% of the principal amount, which represents the maximum amount of the contingent call option exercisable in the event of an equity offering (see Note 8, Debt). The term loan prepayment occurred in two installments: the first prepayment of $207 million occurred on April 24, 2014 and the second prepayment of $90 million occurred on April 29, 2014. The redemption of $320 million of our senior secured notes due in 2019 occurred on May 7, 2014. We also used the net proceeds from our offering to pay the $27 million redemption premium and $13 million in accrued but unpaid interest on the senior secured notes due in 2019. We used the remaining portion of the net proceeds from our offering to pay a $21 million fee, in the aggregate, to TPG Global, LLC (“TPG”) and Silver Lake Management Company (“Silver Lake”) pursuant to a management services agreement (the “MSA”), which was thereafter terminated. | Travel Network is our global business-to-business travel marketplace and consists primarily of our global distribution system (“GDS”), which serves the role of a transaction processor for the travel industry, and a broad set of solutions that integrate with our GDS to add value for travel supplies and travel buyers. Our GDS facilitates travel by efficiently bringing together travel content such as inventory, prices, and availability from a broad array of travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines and tour operators, with a large network of travel buyers, including online and offline travel agencies, travel management companies, and corporate travel departments. Travel Network primarily generates revenue through transaction-based fees. | |
On March 20, 2014, our board of directors adopted the Sabre Corporation 2014 Omnibus Incentive Compensation Plan (the “2014 Omnibus Plan”), which permits the grant of cash and equity and equity-based incentive awards. Our employees and the non-employee members of our board of directors and those of our subsidiaries are eligible to receive awards under the 2014 Omnibus Plan. On the effective date of our initial public offering, under the 2014 Omnibus Plan, we granted time-based options to purchase 1,541,627 shares of common stock at an exercise price of $16.68 per share and a total of 2,298,478 shares of performance-based and time-based restricted stock units. | Airline and Hospitality Solutions | |
In April 2014, we cancelled all outstanding stock-based awards issued under the Travelocity.com LLC Stock Option Grant Agreements, the Travelocity Equity 2012 Plan and the Sovereign Holdings, Inc. Amended and Restated Stock Incentive Plan for Travelocity’s CEO—Stock Settled SARs with Respect to Travelocity Equity, terminated all related plans and award agreements, and recorded stock compensation expense of $7 million, representing the remaining unrecognized compensation expense of the awards at the cancellation date. | Our Airline and Hospitality Solutions business offers a broad portfolio of software technology products and solutions, through the software-as-a-service (“SaaS”) and hosted delivery model. Our Airline Solutions business provides comprehensive software solutions that help our airline customers better market, sell, serve and operate. We offer customizable reservations software that supports the essentials of a passenger service system. Our other airline software solutions help airline customers make decisions around marketing and planning, merchandising offering and managing network operations. Our Hospitality Solutions business provides distribution, operations and marketing solutions to hotel suppliers. Our offerings include reservations systems, property management systems, marketing services through our customers’ various distribution channels and consulting services. Our Airline and Hospitality Solutions primarily generates transaction-based fees for the usage of our software pursuant to contracts with terms that typically range between three and ten years and generally include minimum annual volume requirements. | |
Basis of Presentation—The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of results that may be expected for any other interim period or for the year ended December 31, 2014. The accompanying interim financial statements should be read in conjunction with our annual audited financial statements and related notes thereto for the year ended December 31, 2013 included in our prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act on April 17, 2014. | Travelocity | |
We consolidate all of our majority-owned subsidiaries and companies over which we exercise control through majority voting rights. No entities are currently consolidated due to control through operating agreements, financing agreements, or as the primary beneficiary of a variable interest entity. | Travelocity is our family of online consumer travel e-commerce businesses that serves primarily leisure travelers. We connect these travelers with travel products and services across well-known and trusted global brands. Through our websites, travelers can research, shop and book airlines, hotels, car rental companies, cruise lines, vacation and last-minute travel packages Travelocity is comprised primarily of (i) Travelocity.com, an online travel agency focusing on the United States and Canada, (ii) lastminute.com, an OTA focusing on Europe, and (iii) Travel Partner Network (“TPN”), our business-to-business offering that provides travel content and booking functionality to, as well as market and sell products and services through, private label websites for suppliers and distribution partners. In the third quarter of 2013, we initiated plans to shift our Travelocity businesses in the United States and Canada away from a high fixed-cost model to a lower-cost, performance-based revenue structure. See Note 5, Restructuring Charges. In February 2014, we sold the assets associated with TPN. See Note 22, Subsequent Events. | |
The consolidated financial statements include our accounts after elimination of all significant intercompany balances and transactions. | ||
Use of Estimates—The preparation of these interim financial statements in conformity with GAAP requires that certain amounts be recorded based on estimates and assumptions made by management. Actual results could differ from these estimates and assumptions. Our accounting policies, which include significant estimates and assumptions, include, among other things, estimation of the collectability of accounts receivable, amounts for future cancellations of bookings processed through the Sabre global distribution system (“GDS”), revenue recognition for software development, determination of the fair value of assets and liabilities acquired in a business combination, determination of the fair value of derivatives, the evaluation of the recoverability of the carrying value of intangible assets and goodwill, assumptions utilized in the determination of pension and other postretirement benefit liabilities, assumptions made in the calculation of restructuring liabilities and the evaluation of uncertainties surrounding the calculation of our tax assets and liabilities. These policies are discussed in our annual audited consolidated financial statements and related notes thereto for the year ended December 31, 2013 included in our prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act on April 17, 2014. |
Acquisitions
Acquisitions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||
Business Combinations [Abstract] | ||||||
Acquisitions | 2. Acquisitions | 3. Acquisitions | ||||
On September 11, 2014, we acquired certain assets and liabilities of Genares Worldwide Reservation Services, Ltd. (“Genares”), a provider of central reservation systems, revenue management and marketing solutions to more than 2,300 independent and chain hotel properties worldwide. Under the transaction, we acquired the assets of Genares for cash consideration of $32 million. The operating results of Genares have been included in our consolidated statement of operations and results of operations of our Airline and Hospitality Solutions segment from the date of the acquisition. The assets acquired and liabilities assumed have been recorded in our consolidated balance sheet based on preliminary fair value estimates. The final allocation of the purchase price will be based on a complete evaluation of the assets acquired and liabilities assumed. Accordingly, the information presented in our consolidated balance sheet and elsewhere in this report may differ from the final purchase price allocation. The preliminary allocation of the purchase price includes $14 million to goodwill, which is deductible for tax purposes, $17 million to other intangible assets and $1 million to net assets acquired. The other intangible assets consist primarily of $14 million of acquired customer relationships with a useful life of ten years and $2 million of non-compete agreements with a useful life of five years. | Pro forma information related to acquisitions occurring during 2013, 2012 and 2011 has not been included, as the effect would not be material to our consolidated financial statements. | |||||
2012 | ||||||
Acquisition of PRISM—On August 1, 2012, we acquired all of the outstanding stock and ownership interests of PRISM Group Inc. and PRISM Technologies LLC (collectively “PRISM”), a leading provider of end-to-end airline contract business intelligence and decision support software. The acquisition added to our portfolio of products within Airline and Hospitality Solutions, allows for new relationships with airlines and added to our existing business intelligence capabilities. The purchase price was $116 million, $66 million of which was paid on August 1, 2012. Contingent consideration totaled $54 million on an undiscounted basis and is to be paid in two installments of $27 million each, due 12 and 24 months following the acquisition date. The first $27 million installment represented a holdback payment primarily for indemnification purposes and the second $27 million payment represents contingent consideration which is based on contractually determined performance measures, which have been met. Additionally, $6 million is also due in two installments of $3 million each at 12 and 24 months, which is contingent upon employment of key employees and is being expensed over the relevant periods of employment and therefore is not considered a part of the purchase price consideration. We made the first holdback and contingent employment payments totaling $30 million in August 2013. | ||||||
The results of operations of PRISM are included in our consolidated statements of operations and the results of operations of Airline and Hospitality Solutions from the date of acquisition. The impact to our revenue and net loss from the acquisition of PRISM is not material for all periods presented. Assets acquired and liabilities assumed were recorded at their estimated fair values using management’s best estimates, based in part on an independent valuation of the net assets acquired. The following table summarizes the allocation of the purchase price and the amounts allocated to goodwill (in thousands): | ||||||
Patents (10 year useful life) | $ | 59,400 | ||||
Customer and contractual relationships (10 year useful life) | 10,700 | |||||
Trademarks (5 year useful life) | 800 | |||||
Goodwill | 35,737 | |||||
Accounts receivable, net | 8,059 | |||||
Other net assets acquired | 1,458 | |||||
Total purchase price | $ | 116,154 | ||||
Other Acquisitions—During 2012, we completed one additional acquisition which was not individually material to our financial statements for a total purchase price of $6 million. | ||||||
During 2011, we completed two acquisitions which individually were not material to our consolidated financial statements. In the first quarter of 2011, we completed the acquisition of Zenon N.D.C., Limited, a provider of GDS services to travel agents in Cyprus. In the second quarter of 2011, we completed the acquisition of SoftHotel, Inc., a provider of web-based property management solutions for the hospitality industry. The results of operations of these 2011 acquisitions have been included in our consolidated statements of operations from the dates of the acquisitions. The total purchase price for these acquisitions was $11 million. |
Discontinued_Operations_and_Di
Discontinued Operations and Dispositions | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||
Discontinued Operations and Dispositions | 3. Discontinued Operations and Dispositions | 4. Discontinued Operations and Dispositions | ||||||||||||||||||||||||||||
We have disposed of or discontinued certain businesses or operations in order to further align Travelocity with its core strategies of focusing on product and customer experiences in profitable locations, and displaying and promoting highly relevant content. We believe these decisions will allow us to reduce our technological complexity by reducing the number of supported business platforms and operations. | During the periods presented, we disposed of or discontinued certain businesses or operations in order to further align Travelocity with its core strategies of focusing on product and customer experiences in profitable locations, and displaying and promoting highly relevant content. We believe these decisions will allow us to reduce our technological complexity by reducing the number of supported business platforms and operations. | |||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations | |||||||||||||||||||||||||||||
The results for the following Travelocity operations are presented in (loss) income from discontinued operations in our consolidated statements of operations: | The results for the following Travelocity operations are presented in income (loss) from discontinued operations in our consolidated statements of operations: | |||||||||||||||||||||||||||||
Holiday Autos—On June 25, 2013, we sold certain assets of our Holiday Autos operations to a third party and, in November 2013, completed the closing of the remainder of the Holiday Autos operations such that it represented a discontinued operation. Holiday Autos was a leisure car hire broker that offered pre-paid, low-cost car rentals in various markets, largely in Europe. In the second quarter of 2013, we recognized an $11 million loss, net of tax, on the sale of Holiday Autos. The loss includes the write-off of $39 million of goodwill and intangible assets attributed to Holiday Autos, with the goodwill portion determined based on Holiday Autos’ relative fair value to the Travelocity Europe reporting unit. The sale provides for us to receive two earn-out payments measured during the 12 month periods ending September 30, 2014 and 2015, totaling up to $12 million, based upon the purchaser exceeding certain booking thresholds as defined in the sale agreement. We recognized $6 million relative to these earn-out provisions and the resulting receivable is reviewed for recovery on a periodic basis. Any earn-out payments received in excess of the $6 million recognized will be recorded as a gain in the period received. | Holiday Autos—On June 25, 2013, we sold certain assets of our Holiday Autos operations to a third party and, in November 2013, completed the closing of the remainder of the Holiday Autos operations such that it represented a discontinued operation. Holiday Autos was a leisure car hire broker that offered pre-paid, low-cost car rental in various markets, largely in Europe. We recognized an $11 million loss, net of tax, on the sale of Holiday Autos. The loss includes the write-off of $39 million of goodwill and intangible assets attributed to Holiday Autos, with the goodwill portion determined based on Holiday Autos’ relative fair value to the Travelocity Europe reporting unit. The sale provides for us to receive two earn-out payments measured 12 and 24 months following the date of the sale, totaling up to $12 million, based upon the purchaser exceeding certain booking thresholds as defined in the sale agreement. We recognized $6 million relative to these earn-out provisions and the resulting receivable is reviewed for recovery on a periodic basis. Any earn-out payments received in excess of the $6 million recognized will be recorded as a gain in the period received. | |||||||||||||||||||||||||||||
Zuji—In December 2012, we entered into an agreement to sell our shares of Zuji Properties A.V.V. and Zuji Pte Ltd along with its operating subsidiaries (collectively “Zuji”), a Travelocity Asia Pacific-based Online Travel Agency (“OTA”). At that time, the assets were recorded at the lower of the carrying amount or fair value less cost to sell. We recorded an estimated loss on the sale of approximately $14 million, net of tax during 2012. We sold Zuji on March 21, 2013 and recorded an additional $11 million loss on sale, net of tax during the three months ended March 31, 2013. We have continuing cash flows from Zuji due to reciprocal agreements between us and Zuji to provide hotel reservations services over a three year period. The agreements include commissions to be paid to the respective party based on qualifying bookings. The continuing cash flows associated with Zuji were not material to our results of operations for the nine months ended September 30, 2014. | Travelocity—Asia Pacific—In July 2012, we completed the sale of two of our subsidiaries in India (collectively “TravelGuru”). These businesses offered a wide array of travel related services and operated a hotel reservations system. We recorded a gain on the sale of approximately $11 million, net of tax, in the third quarter of 2012. | |||||||||||||||||||||||||||||
Results of Discontinued Operations—We have reported the results of operations of Holiday Autos and Zuji as discontinued operations. As part of the Zuji sale agreement, we had retained the rights to receive refunds of certain disputed income taxes outstanding as of the sale date. During the third quarter of 2014, we received a $2 million tax refund associated with the operations of Zuji prior to its disposal which is included in (benefit) provision for income taxes of discontinued operations. The following table summarizes the results of our discontinued operations (in thousands): | Further, in December 2012, we entered into an agreement to sell our shares of Zuji Properties A.V.V. and Zuji Pte Ltd along with its operating subsidiaries (collectively “Zuji”), a Travelocity Asia Pacific-based Online Travel Agency (“OTA”). At that time, the assets were recorded at the lower of the carrying amount or fair value less cost to sell. We recorded an estimated loss on the sale of approximately $14 million, net of tax during 2012. We sold Zuji on March 21, 2013 and recorded an additional $11 million loss on sale, net of tax during the year ended December 31, 2013. We have continuing cash flows from Zuji due to reciprocal agreements between us and Zuji to provide hotel reservations services over a three year period. The agreements include commissions to be paid to the respective party based on qualifying bookings. The continuing cash flows associated with Zuji were not material to our results of operations for the year ended December 31, 2013. | |||||||||||||||||||||||||||||
The operations of Zuji and TravelGuru represented our Travelocity—Asia Pacific reporting unit; Travelocity no longer has operations in the Asia Pacific region. | ||||||||||||||||||||||||||||||
Travelocity Nordics—In December 2012, we sold certain assets of Travelocity’s Nordics business to a third party. The Nordics business is comprised of an online travel agency and event and ticket sales in Sweden, Norway and Denmark. Travelocity no longer has operations in this region. | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Results of Discontinued Operations—The results of discontinued operations for the year ended December 31, 2013 include $33 million of gains associated with the reversals of allowances for uncollectable value-added tax (“VAT”) receivables related to Holiday Autos (see Note 20, Commitments and Contingencies) and $4 million of other income related to the resolution of a legal contingency that existed at the close of the sale of TravelGuru. The reversals of the VAT receivable allowances were a result of payments received in 2013 and are reflected as a reduction to selling, general and administrative expenses in the table below. The results of discontinued operations for the year ended December 31, 2012 includes $17 million of accrued expenses in cost of revenue for VAT assessments and related penalties and interest associated with our Secret Hotels 2 Limited (formerly Med Hotels Limited) entity which was discontinued in 2008. The $17 million accrued liability was reversed during the year ended December 31, 2013 and is reflected as a reduction to cost of revenue in the below table (see Note 20, Commitments and Contingencies). | ||||||||||||||||||||||||||||
September 30, | September 30, | The following table summarizes the results of our discontinued operations: | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
Revenue | $ | — | $ | 12,806 | $ | — | $ | 48,549 | ||||||||||||||||||||||
Cost of revenue | 146 | 2,882 | 1,257 | 14,668 | Year Ended December 31, | |||||||||||||||||||||||||
Selling, general and administrative | 680 | 469 | 3,023 | 31,030 | 2013 | 2012 | 2011 | |||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||
Operating (loss) income | (826 | ) | 9,455 | (4,280 | ) | 2,851 | Revenue | $ | 49,124 | $ | 107,189 | $ | 124,763 | |||||||||||||||||
Other income (expense): | Cost of revenue | (2,176 | ) | 26,694 | 36,502 | |||||||||||||||||||||||||
Interest expense, net | (2,559 | ) | 3,613 | (5,917 | ) | 1,493 | Selling, general and administrative | 23,542 | 107,808 | 101,873 | ||||||||||||||||||||
Loss on sale of businesses, net | — | — | — | (27,708 | ) | Impairment expense | 516 | 11,250 | — | |||||||||||||||||||||
Other, net | (392 | ) | (4,283 | ) | (2,044 | ) | (880 | ) | Depreciation and amortization | 2,599 | 4,412 | 5,440 | ||||||||||||||||||
Total other expense, net | (2,951 | ) | (670 | ) | (7,961 | ) | (27,095 | ) | Operating income (loss) | 24,643 | (42,975 | ) | (19,052 | ) | ||||||||||||||||
(Loss) income from discontinuing operations before income taxes | (3,777 | ) | 8,785 | (12,241 | ) | (24,244 | ) | Other income (expense): | ||||||||||||||||||||||
(Benefit) provision for income taxes | (2,041 | ) | 5,770 | (4,224 | ) | (3,349 | ) | Interest expense, net | (1,217 | ) | (8,898 | ) | (6,368 | ) | ||||||||||||||||
Loss on sale of businesses, net | (27,709 | ) | (8,266 | ) | — | |||||||||||||||||||||||||
Net (loss) income from discontinued operations | $ | (1,736 | ) | $ | 3,015 | $ | (8,017 | ) | $ | (20,895 | ) | Other, net | 1,988 | (2,607 | ) | (2,161 | ) | |||||||||||||
Dispositions | Total other expense, net | (26,938 | ) | (19,771 | ) | (8,529 | ) | |||||||||||||||||||||||
Disposition of Certain Assets of Travelocity—In February 2014, as a further step in our restructuring plans for Travelocity, we completed a sale of assets associated with Travelocity Partner Network (“TPN”), a business-to-business private white label website offering, for $10 million in upfront proceeds. Pursuant to the sale agreement, we will receive two annual earn-out payments, totaling up to $10 million, if the purchaser exceeds certain revenue thresholds during the calendar years ending December 31, 2014 and 2015. In connection with the sale, Travelocity entered into a Transition Services Agreement (“TSA”) with the acquirer to provide services to maintain the websites and certain technical and administrative functions for the acquirer until a complete transition occurs or the TSA terminates. Consideration received under both agreements has been allocated to the disposition and the services provided under the TSA; therefore, a significant portion of the upfront proceeds have been deferred, based on fair value of the TSA services. At the time of sale, we recognized no net gain or loss which was comprised of a $3 million loss on disposition, offset by a $3 million receivable for earn-out proceeds. During the third quarter of 2014, we determined that receipt of the earn-out proceeds was no longer probable and therefore fully impaired the receivable. The $3 million loss is included in restructuring charges for the three and nine months ended September 30, 2014 in our consolidated statements of operations. | ||||||||||||||||||||||||||||||
On June 18, 2013, we completed the sale of certain assets of Travelocity (“TBiz”) operations to a third party for proceeds of $10 million. TBiz provided managed travel services for corporate customers. In the second quarter of 2013, we recognized a pre-tax gain on the sale of TBiz of $1 million which included the write-off of $9 million of goodwill attributed to TBiz based on the relative fair value to the Travelocity North America reporting unit. On an after tax basis, we recognized a loss of $3 million on the sale of TBiz. | Loss from discontinuing operations before income taxes | (2,295 | ) | (62,746 | ) | (27,581 | ) | |||||||||||||||||||||||
Provision (benefit) for income taxes | 4,881 | (13,799 | ) | (4,120 | ) | |||||||||||||||||||||||||
Net loss from discontinued operations | $ | (7,176 | ) | $ | (48,947 | ) | $ | (23,461 | ) | |||||||||||||||||||||
Dispositions | ||||||||||||||||||||||||||||||
Certain Assets of Travelocity—On June 18, 2013, we completed the sale of certain assets of Travelocity (“TBiz”) operations to a third party. TBiz provides managed corporate travel services for corporate customers. We recorded proceeds of $10 million and a loss on the sale of $3 million, net of tax, including the write-off of $9 million of goodwill attributed to TBiz based on the relative fair value to the Travelocity North America reporting unit, in our consolidated statement of operations. | ||||||||||||||||||||||||||||||
Sabre Pacific—On February 24, 2012, we completed the sale of our 51% stake in Sabre Australia Technologies I Pty Ltd (“Sabre Pacific”), an entity jointly owned by a subsidiary of Sabre (51%) and ABACUS International PTE Ltd (“Abacus”) (49%), to Abacus for $46 million of proceeds. Of the proceeds received, $9 million was for the sale of stock, $18 million represented the repayment of an intercompany note receivable from Sabre Pacific, which was entered into when the joint venture was originally established, and the remaining $19 million represented the settlement of operational intercompany receivable balances with Sabre Pacific and associated amounts we owed to Abacus. We recorded $25 million as gain on sale of business in our consolidated statements of operations. We have also entered into a license and distribution agreement with Sabre Pacific under which it will market, sub-license, distribute, provide access to and support for the Sabre GDS in Australia, New Zealand and surrounding territories. Sabre Pacific will pay us an ongoing transaction fee based on booking volumes under this agreement. |
Restructuring_Charges
Restructuring Charges | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||
Restructuring Charges | 4. Restructuring Charges | 5. Restructuring Charges | ||||||||||||||||||||||||
Travelocity Restructuring—In the third quarter of 2013, we initiated plans to restructure Travelocity, shifting Travelocity in the United States and Canada away from a fixed-cost model to a lower-cost, performance-based shared revenue structure. On August 22, 2013 we entered into an exclusive, long-term strategic marketing agreement with Expedia (“Expedia SMA”), in which Expedia powers the technology platforms for Travelocity’s existing U.S. and Canadian websites, as well as provides Travelocity with access to Expedia’s supply and customer service platforms. In connection with the Expedia SMA, we also entered into a put/call agreement with Expedia (the “Put/Call Agreement”). The Expedia SMA represents a strategic decision to reduce direct costs associated with Travelocity and provide our customers with the benefit of Expedia’s long term investment in its technology platform as well as its supply and customer service platforms. Both parties began development and implementation after signing the Expedia SMA. Substantially all supplier offerings have been migrated to the Expedia platform which has resulted in increased conversion and operational efficiency and has allowed us to shift our focus to Travelocity’s marketing strengths. Based on the terms of the Expedia SMA, Expedia earned an incentive payment of $8 million in January 2014 and an additional $3 million in March 2014. We are amortizing these payments over the non-cancellable term of the Expedia SMA as a reduction to revenue. | Travelocity Restructuring—In the third quarter of 2013, we initiated plans to restructure Travelocity, shifting Travelocity in the United States and Canada away from a fixed-cost model to a lower-cost, performance-based shared revenue structure. On August 22, 2013 we entered into an exclusive, long-term strategic marketing agreement with Expedia (“Expedia SMA”), in which Expedia will power the technology platforms for Travelocity’s existing U.S. and Canadian websites, as well as provide Travelocity with access to Expedia’s supply and customer service platforms. The Expedia SMA represents a strategic decision to reduce direct costs associated with Travelocity and provide our customers with the benefit of Expedia’s long term investment in its technology platform as well as its supply and customer service platforms, which we expect to increase conversion and operational efficiency and allows us to shift our focus to Travelocity’s marketing strengths. Both parties began development and implementation after signing the Expedia SMA. As of December 31, 2013, the majority of the online hotel and air offering has been migrated to the Expedia platform, and a launch of the majority of the remainder is expected in early 2014. Based on the terms of the agreement, Expedia has earned an incentive payment of $8 million in January 2014, which could increase to $11 million depending on the timing of the full launch in 2014. We plan to amortize this payment over the non-cancellable term of the marketing agreement as a reduction to revenue. | |||||||||||||||||||||||||
Expedia pays us a performance-based marketing fee that varies based on the amount of travel booked through Travelocity-branded websites powered by Expedia under this collaborative arrangement. The marketing fee we receive is recorded as marketing fee revenue and the cost we incur to promote the Travelocity brand and for marketing is recorded as selling, general and administrative expense in our results of operations. Correspondingly, we are winding down certain internal processes, including back office functions, as substantially all transactions have moved from our technology platforms to those of Expedia. | Under the terms of the agreement, Expedia will pay us a performance-based marketing fee that will vary based on the amount of travel booked through Travelocity-branded websites powered by Expedia under this collaborative arrangement. The marketing fee we receive is recorded as marketing fee revenue and the cost we incur to promote the Travelocity brand and for marketing is recorded as selling, general and administrative expense in our results of operations. Correspondingly, we are winding down certain internal processes, including back office functions, as transactions move from our technology platforms to those of Expedia. | |||||||||||||||||||||||||
Pursuant to the Put/Call Agreement, Expedia may acquire, or we may sell to Expedia, assets relating to the Travelocity-branded portions of our Travelocity business, which primarily include the assets subject to the Expedia SMA. Our put right may be exercised during the first 24 months of the Expedia SMA only upon the occurrence of certain triggering events primarily relating to implementation, which are outside of our control. The occurrence of these events is not considered probable. During this period, the exercise price of the put right is fixed. After the initial 24 month period, the put right is only exercisable for a limited period of time in 2016 and 2017 at a discount to fair market value as defined in the Put/Call Agreement. The call right held by Expedia is exercisable at any time during the term of the Put/Call Agreement. If the call right is exercised, although we expect the amount paid will be fair value, the call right provides for a floor for a limited time that may be higher than fair value and a ceiling for the duration of the Put/Call Agreement that may be lower than fair value. | We also agreed to a put/call arrangement (“Expedia Put/Call”) whereby Expedia may acquire, or we may sell to Expedia, certain assets relating to the Travelocity business. Our put right may be exercised during the first 24 months of the Expedia SMA only upon the occurrence of certain triggering events primarily relating to implementation, which are outside of our control. The occurrence of such events is not considered probable. During this period, the exercise price of the put right is fixed. After the 24 month period, the put right is only exercisable for a limited period of time in 2016 at a discount to fair market value. The call right held by Expedia is exercisable at any time during the term of the Expedia SMA. If the call right is exercised, it provides for a floor for a limited time that may be higher than fair value and a ceiling for the duration of the agreement that may be lower than fair value. | |||||||||||||||||||||||||
In the fourth quarter of 2013, we also initiated a plan to restructure lastminute.com, the European portion of the Travelocity business. This plan involved establishing lastminute.com as a stand-alone operation, separating processes from the North America operations, while adding efficiencies to streamline the European operations. Travelocity continues to be managed as one reportable segment. | ||||||||||||||||||||||||||
During the three months ended September 30, 2014, we recorded restructuring charges of $5 million which includes a $3 million loss on the sale of TPN, $1 million in additional severance costs and $1 million in other costs. During the nine months ended September 30, 2014, we recorded restructuring charges of $2 million which includes a $3 million loss on the sale of TPN, $2 million in additional severance costs and $2 million in other costs, net of adjustments to our original estimates of employee termination benefits of $4 million. The adjustments to our original estimates are primarily the result of certain employees transferring to the acquirer of the TPN business without a required severance payment. We estimate that we will incur additional charges for the remainder of 2014 of approximately $3 million consisting of contract termination and other related costs. | In the fourth quarter of 2013, we initiated a plan to restructure the European portion of the Travelocity business. This plan involves establishing Travelocity Europe as a stand-alone operational entity, separating processes from the North America operations, while adding efficiencies to streamline the European operations. Travelocity will continue to be managed as one reportable segment. | |||||||||||||||||||||||||
Technology Restructuring—Our corporate expenses include a technology organization that provides development and support activities to our business segments. Costs associated with our technology organization are charged to the business segments primarily based on its usage of development resources. For the year ended December 31, 2013, the majority of costs associated with the technology organization were incurred by Travel Network and Airline and Hospitality Solutions. In the fourth quarter of 2013, we initiated a restructuring plan to simplify our technology organization, better align costs with our current business, reduce our spending on third-party resources, increase focus on product development and reduce our employee base by approximately 350 employees. The majority of this plan was completed in the first half of 2014 and we do not expect to record material charges in 2014 related to this action. | As a result of the Travelocity restructuring actions, we recorded charges totaling $28 million which included $4 million of asset impairments, $18 million of employee termination benefits, and $6 million of other related costs. We estimate that we will incur additional charges of approximately $11 million in 2014 consisting of $6 million in contract termination costs, $2 million in employee termination benefits, and $3 million of other related costs. | |||||||||||||||||||||||||
The change in our restructuring accruals, included in other current liabilities, is as follows (in thousands): | Technology Restructuring—Our corporate expenses include a technology organization that provides development and support activities to our business segments. Costs associated with our technology organization are charged to the business segments primarily based on its usage of development resources. For the year ended December 31, 2013, the majority of costs associated with the technology organization were incurred by Travel Network and Airline and Hospitality Solutions. In the fourth quarter of 2013, we initiated a restructuring plan to simplify our technology organization, better align costs with our current business, reduce our spend on third-party resources, and to increase focus on product development. The majority of this plan will be completed in 2014. As a part of this restructuring plan, we will reduce our employee base by approximately 350 employees. We recorded a charge of $8 million associated with employee termination benefits in the fourth quarter of 2013 and do not expect to record material charges in 2014 related to this action. | |||||||||||||||||||||||||
The roll forward of our restructuring accruals, included in other current liabilities, is as follows: | ||||||||||||||||||||||||||
Employee Termination Benefits | ||||||||||||||||||||||||||
Travelocity | Technology | Total | Employee Termination Benefits | |||||||||||||||||||||||
Organization | Travelocity | Technology | Total | |||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 17,731 | $ | 8,163 | $ | 25,894 | Organization | |||||||||||||||||||
Charges | 2,102 | — | 2,102 | (Amounts in thousands) | ||||||||||||||||||||||
Adjustments | (3,938 | ) | (914 | ) | (4,852 | ) | Charges | $ | 17,956 | $ | 8,163 | $ | 26,119 | |||||||||||||
Payments | (9,261 | ) | (6,877 | ) | (16,138 | ) | Payments | 225 | — | 225 | ||||||||||||||||
Balance as of September 30, 2014 | $ | 6,634 | $ | 372 | $ | 7,006 | Restructuring liability at December 31, 2013 | $ | 17,731 | $ | 8,163 | $ | 25,894 | |||||||||||||
The charges included in our restructuring accruals do not include items charged directly to expense (e.g., asset impairments) and other periodic costs recognized as incurred, as those items are not reflected in the restructuring reserve in our consolidated balance sheet. Restructuring charges are not allocated to the segments for segment reporting purposes (see Note 15, Segment Information). | The charges recognized in the roll forward of our reserve for restructuring charges do not include items charged directly to expense (e.g. asset impairments) and other periodic costs recognized as incurred, as those items are not reflected in our restructuring reserve in our consolidated balance sheet. Restructuring charges are not allocated to the segments for segment reporting purposes (see Note 21, Segment Information). |
Equity_Method_Investments
Equity Method Investments | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||
Equity Method Investments | 5. Equity Method Investments | 6. Equity Method Investments | ||||||||||||||||||||||||||||
We have an investment in Abacus International Pte Ltd (“Abacus”) and have entered into a service agreement with Abacus related to data processing services, development labor and other services as requested. The primary revenue generated from Abacus is data processing fees associated with bookings on the Sabre GDS. Development labor and ancillary services are provided upon request. Additionally, in accordance with an agreement with Abacus, we collect booking fees on behalf of Abacus and record a payable, or economic benefit transfer, to Abacus for amounts collected but unremitted at any period end, net of any associated costs we incur. | We have an investment in Abacus and have entered into a service agreement with them relative to data processing services, development labor and other services as requested. The primary revenue generated from Abacus is data processing fees associated with bookings on the Sabre GDS. In accordance with a data processing agreement signed in late 2012, Abacus prepaid for data processing fees which will be amortized over the term of the agreement. Development labor and ancillary services are provided upon request. Additionally, in accordance with an agreement with Abacus, we collect booking fees on behalf of Abacus and record a payable, or economic benefit transfer, to them for amounts collected but unremitted at any period end, net of any associated costs we incur. | |||||||||||||||||||||||||||||
A summary of Abacus’ income statement information is as follows (in thousands): | For the year ended December 31, 2012, Abacus recorded an impairment of goodwill associated with its acquisition of Sabre Pacific, of which our share was $24 million. | |||||||||||||||||||||||||||||
Prior to 2012, we held an equity interest in Axess jointly with Abacus. We recorded an amount due to Abacus for its economic share of the equity interest. Our interest in Axess was sold in 2012. | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | The condensed consolidated financial information below has been presented in conformity with GAAP. | ||||||||||||||||||||||||||||
September 30, | September 30, | Abacus’ Condensed Consolidated Statements of Comprehensive Income are as follows: | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
Revenue | $ | 87,039 | $ | 83,237 | $ | 263,536 | $ | 248,814 | ||||||||||||||||||||||
Operating income | 12,876 | 15,946 | 42,961 | 41,683 | Year Ended December 31, | |||||||||||||||||||||||||
Net income | 10,793 | 8,887 | 34,863 | 30,575 | 2013 | 2012 | 2011 | |||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||
Net income (loss) | $ | 42,368 | $ | (20,366 | ) | $ | 79,452 | |||||||||||||||||||||||
Other comprehensive loss | (4,043 | ) | (9,379 | ) | (3,588 | ) | ||||||||||||||||||||||||
Comprehensive loss | 38,325 | (29,745 | ) | 75,864 | ||||||||||||||||||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 88 | (76 | ) | (81 | ) | |||||||||||||||||||||||||
Comprehensive loss attributable to Abacus | $ | 38,413 | $ | (29,821 | ) | $ | 75,783 | |||||||||||||||||||||||
Abacus’ Condensed Consolidated Statements of Operations are as follows: | ||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||
Revenue | $ | 335,255 | $ | 320,069 | $ | 261,952 | ||||||||||||||||||||||||
Cost of sales | 205,505 | 200,212 | 123,227 | |||||||||||||||||||||||||||
General and administrative costs | 43,157 | 42,219 | 25,382 | |||||||||||||||||||||||||||
Other expenses | 37,306 | 32,367 | 19,497 | |||||||||||||||||||||||||||
Operating income | 49,287 | 45,271 | 93,846 | |||||||||||||||||||||||||||
Impairment losses, net | — | — | (3,057 | ) | ||||||||||||||||||||||||||
Gain on disposal of an associate | — | 5,656 | — | |||||||||||||||||||||||||||
Impairment of goodwill | (100 | ) | (65,809 | ) | — | |||||||||||||||||||||||||
Other non-operating costs | 3,127 | 6,174 | 7,214 | |||||||||||||||||||||||||||
Income before taxes | 52,314 | (8,708 | ) | 98,003 | ||||||||||||||||||||||||||
Income tax expense | 9,946 | 11,658 | 18,551 | |||||||||||||||||||||||||||
Net income (loss) | $ | 42,368 | $ | (20,366 | ) | $ | 79,452 | |||||||||||||||||||||||
Noncontrolling interest | (75 | ) | 130 | 103 | ||||||||||||||||||||||||||
Net income (loss) attributable to Abacus | $ | 42,443 | $ | (20,496 | ) | $ | 79,349 | |||||||||||||||||||||||
Abacus’ Condensed Consolidated Balance Sheets are as follows: | ||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 107,729 | $ | 96,194 | ||||||||||||||||||||||||||
Accounts receivable, net | 43,679 | 51,746 | ||||||||||||||||||||||||||||
Other receivables, net | 61,481 | 53,219 | ||||||||||||||||||||||||||||
Total current assets | 212,889 | 201,159 | ||||||||||||||||||||||||||||
Property and equipment, net | 32,167 | 28,130 | ||||||||||||||||||||||||||||
Goodwill and intangible assets, net | 2,505 | 2,505 | ||||||||||||||||||||||||||||
Other assets, net | 41,647 | 46,788 | ||||||||||||||||||||||||||||
Total assets | $ | 289,208 | $ | 278,582 | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||
Accounts payable | $ | 19,820 | $ | 30,463 | ||||||||||||||||||||||||||
Other accrued liabilities | 103,887 | 91,270 | ||||||||||||||||||||||||||||
Provision for taxation | 47,073 | 48,277 | ||||||||||||||||||||||||||||
Total current liabilities | 170,780 | 170,010 | ||||||||||||||||||||||||||||
Deferred income taxes | 7,474 | 5,733 | ||||||||||||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||||||||||||
Share capital | 56,580 | 56,580 | ||||||||||||||||||||||||||||
Retained earnings | 54,159 | 45,746 | ||||||||||||||||||||||||||||
Noncontrolling interest | 215 | 513 | ||||||||||||||||||||||||||||
Total stockholders’ equity | 110,954 | 102,839 | ||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 289,208 | $ | 278,582 | ||||||||||||||||||||||||||
Abacus’ Condensed Consolidated Statements of Cash Flows are as follows: | ||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||
Operating Activities | ||||||||||||||||||||||||||||||
Cash provided by operating activities | $ | 57,899 | $ | 9,214 | $ | 48,833 | ||||||||||||||||||||||||
Investing Activities | ||||||||||||||||||||||||||||||
Cash used in investing activities | (16,154 | ) | (29,183 | ) | (8,560 | ) | ||||||||||||||||||||||||
Financing Activities | ||||||||||||||||||||||||||||||
Dividends paid | (30,000 | ) | (60,486 | ) | (35,000 | ) | ||||||||||||||||||||||||
Other financing activities | (210 | ) | (156 | ) | (109 | ) | ||||||||||||||||||||||||
Cash used in financing activities | (30,210 | ) | (60,642 | ) | (35,109 | ) | ||||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 11,535 | (80,611 | ) | 5,164 | ||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 96,194 | 176,805 | 171,641 | |||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 107,729 | $ | 96,194 | $ | 176,805 | ||||||||||||||||||||||||
Our related party transactions with Abacus are summarized and presented in the table below. | ||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||
Revenue earned from Abacus | $ | 91,998 | $ | 71,957 | $ | 52,073 | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||
Receivable from Abacus | $ | 29,377 | $ | 13,939 | ||||||||||||||||||||||||||
Payable to Abacus for Economic Benefit Transfer | (8,648 | ) | (8,452 | ) | ||||||||||||||||||||||||||
Current deferred revenue related to Abacus data processing | (2,571 | ) | (2,571 | ) | ||||||||||||||||||||||||||
Long-term deferred revenue related to Abacus data processing | (12,857 | ) | (15,428 | ) | ||||||||||||||||||||||||||
Related party receivable (liability), net | $ | 5,301 | $ | (12,512 | ) | |||||||||||||||||||||||||
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefit Plans | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans | 6. Pension and Other Postretirement Benefit Plans | 9. Pension and Other Postretirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||
We sponsor the Sabre Inc. Legacy Pension Plan (“LPP”), which is a tax-qualified defined benefit pension plan for employees meeting certain eligibility requirements. The LPP was amended to freeze pension benefit accruals as of December 31, 2005, so that no additional pension benefits are accrued after that date. We also sponsor a defined benefit pension plan for certain employees in Canada. | We sponsor the Sabre Inc. 401(k) Savings Plan (“401(k) Plan”), which is a tax-qualified defined contribution plan that allows tax-deferred savings by eligible employees to provide funds for their retirement. We make a matching contribution equal to 100% of each pre-tax dollar contributed by the participant on the first 6% of eligible compensation. We have recorded expenses related to the 401(k) Plan of approximately $21 million, $20 million and $17 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||
We previously provided retiree life insurance benefits to certain employees who retired prior to January 1, 2001, and we subsidized a portion of the cost of retiree medical benefits for certain retirees and eligible employees hired prior to October 1, 2000. In February 2009, we amended our retiree medical plan to reduce the subsidies received by participants by 20% per year over five years, with no further subsidies beginning January 1, 2014. This amendment resulted in $57 million of prior service credit recorded in other comprehensive income that was amortized to operating expense over the remaining term which concluded in December 2013. The following table provides the components of net periodic benefit costs associated with our pension and other postretirement benefit plans for the three and nine months ended September 30, 2014 and 2013 (in thousands): | We also sponsor personal pension plans for eligible staff at lastminute.com, a Travelocity entity. lastminute.com contributed 5% of eligible pay on behalf of these employees to the plan. We contributed and expensed approximately $1 million for each of the years December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||||||||||||||
Additionally, we sponsor the Sabre Inc. Legacy Pension Plan (“LPP”), which is a tax-qualified defined benefit pension plan for employees meeting certain eligibility requirements. The LPP was amended to freeze pension benefit accruals as of December 31, 2005, so that no additional pension benefits are accrued after that date. In April 2008, we amended the LPP to add a lump sum optional form of payment which participants may elect when their plan benefits commence. The effect of the amendment was to decrease the projected benefit obligation by $34 million, which is being amortized over 23.5 years, representing the weighted average of the lump sum benefit period and the life expectancy of all plan participants. We also sponsor a defined benefit pension plan for certain employees in Canada. | ||||||||||||||||||||||||||||||||||||||||||
We provide retiree life insurance benefits to certain employees who retired prior to January 1, 2001, and we subsidize a portion of the cost of retiree medical benefits for certain retirees and eligible employees hired prior to October 1, 2000. In February 2009, we amended our retiree medical plan to reduce the subsidies received by participants by 20% per year over the next 5 years, with no further subsidies beginning January 1, 2014. This amendment resulted in $57 million of negative prior service cost recorded in other comprehensive income that was amortized to operating expense over the remaining term which concluded in December 2013. | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Pursuant to a Travel Privileges Agreement with American Airlines Group (“AAG”), formerly AMR Corporation, we are entitled to purchase personal travel for certain retirees. Eligible employees were required to retire from the Company on or before June 30, 2008 to receive this benefit, unless they met the requirements to dual-retire from AAG and Sabre Holdings. These dual-retirees will receive these benefits upon retiring from Sabre Holdings. To pay for the provision of flight privileges for eligible retired employees, we make a lump-sum payment to AAG in the year the employees retire. | ||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | The following tables provide a reconciliation of the changes in the plans’ benefit obligations, fair value of assets and the funded status as of December 31, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension Benefits: | ||||||||||||||||||||||||||||||||||||||||||
Interest cost | $ | 4,886 | $ | 4,483 | $ | 14,686 | $ | 13,448 | Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
Expected return on plan assets | (5,909 | ) | (5,908 | ) | (17,959 | ) | (17,726 | ) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Amortization of prior service credit | (358 | ) | (359 | ) | (1,074 | ) | (1,075 | ) | (Amounts in thousands) | |||||||||||||||||||||||||||||||||
Amortization of actuarial loss | 1,290 | 1,846 | 3,690 | 5,537 | Change in benefit obligation: | |||||||||||||||||||||||||||||||||||||
Benefit obligation at January 1 | $ | (440,752 | ) | $ | (381,506 | ) | $ | (3,045 | ) | $ | (5,723 | ) | ||||||||||||||||||||||||||||||
Net periodic (credit) cost | $ | (91 | ) | $ | 62 | $ | (657 | ) | $ | 184 | Service cost | — | — | — | — | |||||||||||||||||||||||||||
Interest cost | (17,930 | ) | (19,744 | ) | (41 | ) | (91 | ) | ||||||||||||||||||||||||||||||||||
Other Benefits: | Actuarial gains (losses), net | 37,416 | (59,434 | ) | 607 | (100 | ) | |||||||||||||||||||||||||||||||||||
Interest cost | — | 10 | 2 | 30 | Benefits paid | 24,805 | 19,932 | 1,665 | 2,869 | |||||||||||||||||||||||||||||||||
Amortization of prior service credit | — | (3,087 | ) | — | (9,261 | ) | ||||||||||||||||||||||||||||||||||||
Amortization of actuarial gain | (33 | ) | (477 | ) | (99 | ) | (1,439 | ) | Benefit obligation at December 31 | $ | (396,461 | ) | $ | (440,752 | ) | $ | (814 | ) | $ | (3,045 | ) | |||||||||||||||||||||
Net periodic credit | $ | (33 | ) | $ | (3,554 | ) | $ | (97 | ) | $ | (10,670 | ) | Change in plan assets: | |||||||||||||||||||||||||||||
Fair value of assets at January 1 | $ | 334,701 | $ | 293,255 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
We made contributions of $4 million to fund our defined benefit pension plans during the nine months ended September 30, 2014. No contributions were made during the nine months ended September 30, 2013. Annual contributions to our defined benefit pension plans in the United States and Canada are based on several factors that may vary from year to year. Thus, past contributions are not always indicative of future contributions. Based on current assumptions, we do not expect to make additional contributions to our defined benefit pension plans for the remainder of 2014. | Actual return on plan assets | 30,007 | 41,143 | — | — | |||||||||||||||||||||||||||||||||||||
Employer contributions | 2,579 | 20,235 | 1,665 | 2,869 | ||||||||||||||||||||||||||||||||||||||
Benefits paid | (24,805 | ) | (19,932 | ) | (1,665 | ) | (2,869 | ) | ||||||||||||||||||||||||||||||||||
Fair value of assets at December 31 | $ | 342,482 | $ | 334,701 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Funded status at December 31 | $ | (53,979 | ) | $ | (106,051 | ) | $ | (814 | ) | $ | (3,045 | ) | ||||||||||||||||||||||||||||||
The cumulative amounts recognized in the consolidated balance sheets as of December 31, 2013 and December 31, 2012, consist of: | ||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Total | ||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Current liabilities | $ | — | $ | — | $ | (743 | ) | $ | (1,913 | ) | $ | (743 | ) | $ | (1,913 | ) | ||||||||||||||||||||||||||
Noncurrent liabilities | (53,979 | ) | (106,051 | ) | (71 | ) | (1,132 | ) | (54,050 | ) | (107,183 | ) | ||||||||||||||||||||||||||||||
Total | $ | (53,979 | ) | $ | (106,051 | ) | $ | (814 | ) | $ | (3,045 | ) | $ | (54,793 | ) | $ | (109,096 | ) | ||||||||||||||||||||||||
The current and noncurrent liabilities are presented in other accrued liabilities and other noncurrent liabilities, respectively, in the consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||||||||
The amounts recognized in accumulated other comprehensive income (loss), net of deferred taxes, as of December 31, 2013 and December 31, 2012 consists of: | ||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Total | ||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Net actuarial gain (loss) | $ | (79,959 | ) | $ | (113,697 | ) | $ | 50 | $ | 2,589 | $ | (79,909 | ) | $ | (111,108 | ) | ||||||||||||||||||||||||||
Prior service credit | 16,092 | 17,009 | 55 | 7,941 | 16,147 | 24,950 | ||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | $ | (63,867 | ) | $ | (96,688 | ) | $ | 105 | $ | 10,530 | $ | (63,762 | ) | $ | (86,158 | ) | ||||||||||||||||||||||||||
The discount rate used in the measurement of our benefit obligations as of December 31, 2013 and December 31, 2012 is as follows: | ||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Weighted-average discount rate | 5.1 | % | 4.19 | % | 0.55 | % | 2.07 | % | ||||||||||||||||||||||||||||||||||
Due to the freeze of pension benefit accruals under the LPP as of December 31, 2005, no assumption for future rate of compensation increase is necessary. | ||||||||||||||||||||||||||||||||||||||||||
The following table provides the components of net periodic benefit costs associated with our pension and other postretirement benefit plans for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Interest cost | $ | 17,930 | $ | 19,744 | $ | 20,447 | ||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (23,635 | ) | (24,323 | ) | (23,820 | ) | ||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | (1,432 | ) | (1,432 | ) | (1,432 | ) | ||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss | 7,383 | 4,269 | 2,195 | |||||||||||||||||||||||||||||||||||||||
Net benefit | $ | 246 | $ | (1,742 | ) | $ | (2,610 | ) | ||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||
Other Benefits | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 1 | ||||||||||||||||||||||||||||||||||||
Interest cost | 42 | 91 | 176 | |||||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | (12,348 | ) | (11,397 | ) | (11,397 | ) | ||||||||||||||||||||||||||||||||||||
Amortization of actuarial gain | (3,932 | ) | (1,929 | ) | (745 | ) | ||||||||||||||||||||||||||||||||||||
Net benefit | $ | (16,238 | ) | $ | (13,235 | ) | $ | (11,965 | ) | |||||||||||||||||||||||||||||||||
Obligations Recognized in | Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (43,787 | ) | $ | 42,614 | $ | (42 | ) | $ | 187 | ||||||||||||||||||||||||||||||||
Amortization of actuarial gain (loss) | (7,383 | ) | (4,269 | ) | 3,932 | 1,929 | ||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | 1,432 | 1,432 | 12,348 | 11,397 | ||||||||||||||||||||||||||||||||||||||
Total recognized in other comprehensive income | $ | (49,738 | ) | $ | 39,777 | $ | 16,238 | $ | 13,513 | |||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | (49,492 | ) | $ | 38,035 | $ | — | $ | 278 | |||||||||||||||||||||||||||||||||
We estimate that $3 million of prior service credit and actuarial loss for the defined benefit pension plans will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2014. | ||||||||||||||||||||||||||||||||||||||||||
Income related to pensions and other postretirement benefits totaled approximately $16 million for the year ended December 31, 2013, and $15 million for each of the years ended December 31, 2012 and 2011. | ||||||||||||||||||||||||||||||||||||||||||
The principal assumptions used in the measurement of our net benefit costs for the three years ended December 31, 2013, 2012 and 2011 are as follows: | ||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.19 | % | 5.32 | % | 5.88 | % | 1.16 | % | 2.32 | % | 2.69 | % | ||||||||||||||||||||||||||||||
Expected return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | — | — | — | |||||||||||||||||||||||||||||||||
Due to a cap on our retiree medical plan cost, a one-percentage point change in the assumed health care cost trend rates would not have a significant impact on service and interest cost or on our postretirement benefit obligation as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||
Our overall investment strategy for the LPP is to provide and maintain sufficient assets to meet pension obligations both as an ongoing business, as well as in the event of termination, at the lowest cost consistent with prudent investment management, actuarial circumstances, and economic risk, while minimizing the earnings impact. Diversification is provided by using an asset allocation primarily between equity and debt securities in proportions expected to provide opportunities for reasonable long-term returns with acceptable levels of investment risk. Fair values of the applicable assets are determined as follows: | ||||||||||||||||||||||||||||||||||||||||||
Mutual Fund—The fair value of our mutual funds are estimated by using market quotes as of the last day of the period. | ||||||||||||||||||||||||||||||||||||||||||
Common Collective Trusts—The fair value of our common collective trusts are estimated by using market quotes as of the last day of the period, quoted prices for similar securities and quoted prices in non-active markets. | ||||||||||||||||||||||||||||||||||||||||||
Real Estate—The fair value of our real estate funds are derived from the fair value of the underlying real estate assets held by the funds. These assets are initially valued at cost and are reviewed periodically utilizing available market data to determine if the assets held should be adjusted. | ||||||||||||||||||||||||||||||||||||||||||
The basis for the selected target asset allocation included consideration of the demographic profile of plan participants, expected future benefit obligations and payments, projected funded status of the plan and other factors. The target allocations for LPP assets are 25% U.S. equities, 25% non-U.S. equities, 43% long duration fixed income, 5% real estate and 2% cash equivalents. It is recognized that the investment management of the LPP assets has a direct effect on the achievement of its goal. As defined in Note 13, Fair Value Measurements, the following tables present the fair value of the LPP assets as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||||||||||||||||||||
Foreign large value | $ | 42,635 | $ | — | $ | — | $ | 42,635 | ||||||||||||||||||||||||||||||||||
Large blend | 43,222 | — | — | 43,222 | ||||||||||||||||||||||||||||||||||||||
Large growth | 21,433 | — | — | 21,433 | ||||||||||||||||||||||||||||||||||||||
Money market | 6,437 | — | — | 6,437 | ||||||||||||||||||||||||||||||||||||||
Common collective trusts: | ||||||||||||||||||||||||||||||||||||||||||
Fixed income securities | — | 142,289 | — | 142,289 | ||||||||||||||||||||||||||||||||||||||
Foreign equity securities | — | 43,107 | — | 43,107 | ||||||||||||||||||||||||||||||||||||||
U.S. equity securities | — | 21,645 | — | 21,645 | ||||||||||||||||||||||||||||||||||||||
Real estate | — | — | 21,714 | 21,714 | ||||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 113,727 | $ | 207,041 | $ | 21,714 | $ | 342,482 | ||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||||||||||||||||||||
Foreign large value | $ | 43,183 | $ | — | $ | — | $ | 43,183 | ||||||||||||||||||||||||||||||||||
Large blend | 40,944 | — | — | 40,944 | ||||||||||||||||||||||||||||||||||||||
Large growth | 20,790 | — | — | 20,790 | ||||||||||||||||||||||||||||||||||||||
Money market | 4,474 | — | — | 4,474 | ||||||||||||||||||||||||||||||||||||||
Common collective trusts: | ||||||||||||||||||||||||||||||||||||||||||
Fixed income securities | — | 142,186 | — | 142,186 | ||||||||||||||||||||||||||||||||||||||
Foreign equity securities | — | 43,429 | — | 43,429 | ||||||||||||||||||||||||||||||||||||||
U.S. equity securities | — | 20,207 | — | 20,207 | ||||||||||||||||||||||||||||||||||||||
Real estate | — | — | 19,488 | 19,488 | ||||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 109,391 | $ | 205,822 | $ | 19,488 | $ | 334,701 | ||||||||||||||||||||||||||||||||||
The following table provides a rollforward of plan assets valued using significant unobservable inputs (level 3), in thousands: | ||||||||||||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance at December 31, 2011 | $ | 17,755 | ||||||||||||||||||||||||||||||||||||||||
Contributions | 265 | |||||||||||||||||||||||||||||||||||||||||
Net distributions | (265 | ) | ||||||||||||||||||||||||||||||||||||||||
Advisory fee | (200 | ) | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 961 | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized gain (loss) | 936 | |||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) | 36 | |||||||||||||||||||||||||||||||||||||||||
Ending balance at December 31, 2012 | 19,488 | |||||||||||||||||||||||||||||||||||||||||
Contributions | 282 | |||||||||||||||||||||||||||||||||||||||||
Net distributions | (282 | ) | ||||||||||||||||||||||||||||||||||||||||
Advisory fee | (220 | ) | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 1,045 | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized gain (loss) | 1,382 | |||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) | 19 | |||||||||||||||||||||||||||||||||||||||||
Ending balance at December 31, 2013 | $ | 21,714 | ||||||||||||||||||||||||||||||||||||||||
We contributed $3 million, $20 million and $9 million to fund the LPP during the years ended December 31, 2013, 2012 and 2011, respectively. Annual contributions to our defined benefit pension plans in the United States and Canada are based on several factors that may vary from year to year. Our funding practice with respect to the LPP is to contribute the minimum required contribution as defined by law while also maintaining an 80% funded status as defined by the Pension Protection Act of 2006. Thus, past contributions are not always indicative of future contributions. Based on current assumptions, we expect to make $11 million in contributions to our defined benefit pension plans in 2014. | ||||||||||||||||||||||||||||||||||||||||||
The expected long-term rate of return on plan assets for each measurement date was selected after giving consideration to historical returns on plan assets, assessments of expected long-term inflation and market returns for each asset class and the target asset allocation strategy. We do not anticipate the return of any plan assets to us in 2014. | ||||||||||||||||||||||||||||||||||||||||||
We expect to make the following estimated future benefit payments under the plans as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||||||||||||||||||||||||
2014 | $ | 25,000 | $ | 1,000 | ||||||||||||||||||||||||||||||||||||||
2015 | 26,000 | — | ||||||||||||||||||||||||||||||||||||||||
2016 | 27,000 | — | ||||||||||||||||||||||||||||||||||||||||
2017 | 27,000 | — | ||||||||||||||||||||||||||||||||||||||||
2018 | 28,000 | — | ||||||||||||||||||||||||||||||||||||||||
2019-2023 | 147,000 | — |
Income_Taxes
Income Taxes | 9 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Income Taxes | 7. Income Taxes | 10. Income Taxes | ||||||||||||
Our effective tax rates for the nine months ended September 30, 2014 and 2013 were 46% and 5%, respectively. The increase in the effective tax rate for the nine months ended September 30, 2014 as compared to the same period in 2013 was primarily due to the impairment of nondeductible goodwill in the prior year, the amount of current year losses for which no tax benefit can be recognized relative to the amount of pre-tax income and the impact of other discrete items, partially offset by the increase in forecasted earnings in lower tax jurisdictions. | The components of pre-tax income, generally based on the jurisdiction of the legal entity, were as follows: | |||||||||||||
The differences between our effective tax rates and the U.S. federal statutory income tax rate primarily result from our geographic mix of taxable income in various tax jurisdictions as well as the discrete tax items referenced above. | ||||||||||||||
We recognize liabilities when we believe that an uncertain tax position may not be fully sustained upon examination by the tax authorities. This requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. When facts and circumstances change, we reassess these probabilities and record any changes in the consolidated financial statements as appropriate. Our net unrecognized tax benefits, excluding interest and penalties, included in our consolidated balance sheets, were $69 million and $61 million as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
Tax Receivable Agreement | Year Ended December 31, | |||||||||||||
Immediately prior to the closing of our initial public offering, we entered into an income tax receivable agreement (“TRA”) that provides those stockholders and equity award holders that were our stockholders and equity award holders, respectively, immediately prior to the closing of our initial public offering (collectively, the “Existing Stockholders”) the right to receive future payments from us of 85% of the amount of cash savings, if any, in U.S. federal income tax that we and our subsidiaries realize as a result of the utilization of certain tax assets attributable to periods prior to our initial public offering, including federal net operating losses, capital losses and the ability to realize tax amortization of certain intangible assets (collectively, the “Pre-IPO Tax Assets”). We recognized an initial liability of $321 million after considering the valuation allowance of $66 million recorded against the Pre-IPO Tax Assets. The TRA liability was recorded as a reduction to additional paid-in capital and an increase to other noncurrent liabilities. No payments have been made under the TRA during the nine months ended September 30, 2014 and we do not expect material payments to occur prior to 2016. Any payments made under the TRA will be classified as a financing activity in our statement of cash flows. | 2013 | 2012 | 2011 | |||||||||||
(Amounts in thousands) | ||||||||||||||
Components of pre-tax income | ||||||||||||||
Domestic | $ | (185,391 | ) | $ | (1,077,917 | ) | $ | (42,530 | ) | |||||
Foreign | 80,907 | 261,120 | 21,042 | |||||||||||
$ | (104,484 | ) | $ | (816,797 | ) | $ | (21,488 | ) | ||||||
The Company’s domestic pre-tax loss of $1,078 million in 2012 was due to the pre-tax impact of the litigation settlement with AMR (see Note 20, Commitments and Contingencies), impairment charges (see Note 7, Goodwill and Intangible Assets) and the write-off of intercompany debt. The Company’s foreign pre-tax income of $261 million in 2012 was driven by the pre-tax impact of cancellation of intercompany debt income, partially offset by impairment charges. | ||||||||||||||
The provision for income taxes relating to continuing operations consists of the following: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(Amounts in thousands) | ||||||||||||||
Current portion: | ||||||||||||||
Federal | $ | 19,822 | $ | 7,383 | $ | 1,812 | ||||||||
State and Local | 10,902 | 6,757 | 2,772 | |||||||||||
Non U.S. | 19,937 | 23,062 | 18,813 | |||||||||||
Total current | 50,661 | 37,202 | 23,397 | |||||||||||
Deferred portion: | ||||||||||||||
Federal | (62,557 | ) | (224,424 | ) | 30,780 | |||||||||
State and Local | (2,772 | ) | (10,364 | ) | 889 | |||||||||
Non U.S. | 639 | 2,515 | 2,740 | |||||||||||
Total deferred | (64,690 | ) | (232,273 | ) | 34,409 | |||||||||
Total (benefit) provision for income taxes | $ | (14,029 | ) | $ | (195,071 | ) | $ | 57,806 | ||||||
The provision for income taxes relating to continuing operations differs from amounts computed at the statutory federal income tax rate as follows: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(Amounts in thousands) | ||||||||||||||
Income tax provision at statutory federal income tax rate | $ | (36,569 | ) | $ | (285,879 | ) | $ | (7,521 | ) | |||||
State income taxes, net of federal benefit | 5,340 | (246 | ) | 2,445 | ||||||||||
Impact of non U.S. taxing jurisdictions, net | 5,565 | (119 | ) | (2,690 | ) | |||||||||
Goodwill impairment | 33,454 | 28,630 | 64,203 | |||||||||||
Impact of sale of business | (11,798 | ) | (15,209 | ) | — | |||||||||
Write off of Intercompany Debt | — | (16,315 | ) | — | ||||||||||
Tax loss attributable to non controlling interest | — | 19,694 | 2,570 | |||||||||||
Excise tax penalties | 4,333 | — | — | |||||||||||
Valuation allowance | (16,010 | ) | 72,261 | — | ||||||||||
Other, net | 1,656 | 2,112 | (1,201 | ) | ||||||||||
Total (benefit) provision for income taxes | $ | (14,029 | ) | $ | (195,071 | ) | $ | 57,806 | ||||||
The components of our deferred tax assets and liabilities are presented in the table below. Certain deferred tax balances as of December 31, 2012 have been revised to reflect actual amounts included in our return; such revisions were not material. | ||||||||||||||
As of December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(Amounts in thousands) | ||||||||||||||
Deferred tax assets: | ||||||||||||||
Accrued expenses | $ | 34,686 | $ | 97,743 | ||||||||||
Employee benefits other than pension | 23,932 | 10,496 | ||||||||||||
Deferred revenue | 67,601 | 69,991 | ||||||||||||
Pension obligations | 18,613 | 39,720 | ||||||||||||
Tax loss carryforwards | 376,427 | 714,175 | ||||||||||||
Non U.S. operations | 33,315 | 10,236 | ||||||||||||
Unrealized gains and losses | (6,794 | ) | 8,408 | |||||||||||
Incentive consideration | (1,101 | ) | (791 | ) | ||||||||||
Tax credit carryforwards | 29,312 | 8,341 | ||||||||||||
TVL Common suspended loss | 24,718 | 24,400 | ||||||||||||
Other | 14,531 | 15,277 | ||||||||||||
Total deferred tax assets | 615,240 | 997,996 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Depreciation and amortization | (7,844 | ) | (4,901 | ) | ||||||||||
Software developed for internal use | (190,362 | ) | (149,242 | ) | ||||||||||
Intangible assets | (89,895 | ) | (119,585 | ) | ||||||||||
Write off of Intercompany Debt | — | (410,289 | ) | |||||||||||
Currency translation adjustment | (8,085 | ) | (9,243 | ) | ||||||||||
Total deferred tax liabilities | (296,186 | ) | (693,260 | ) | ||||||||||
Valuation allowance | (253,082 | ) | (282,091 | ) | ||||||||||
Net deferred tax asset | $ | 65,972 | $ | 22,645 | ||||||||||
We pay United States (“U.S.”) income taxes on the earnings of non-U.S. subsidiaries unless the subsidiaries’ earnings are considered permanently reinvested outside the United States. To the extent that the non-U.S. earnings previously treated as permanently reinvested are repatriated, the related U.S. tax liability may be reduced by any non-U.S. income taxes paid on these earnings. As of December 31, 2013, no provision has been made for the United States federal and state income taxes on certain outside basis differences, which primarily relate to accumulated un-repatriated foreign earnings of approximately $157 million. It is not practical to estimate the unrecognized deferred tax liability for these earnings, as this liability is dependent upon future tax planning strategies. | ||||||||||||||
As of December 31, 2013, we had U.S. federal net operating loss carryforwards (“NOLs”) of approximately $632 million, which will expire between 2021 and 2032 and research tax credit carryforwards of approximately $15 million, which will expire between 2019 and 2032. Additionally, we have a $20 million Alternative Minimum Tax (“AMT”) credit carry forward that does not expire. Approximately $17 million of NOLs and $1 million of research tax credit carryforwards are subject to an annual limitation on their ability to be utilized under Section 382 of the Code. We fully expect that Section 382 will not limit our ability to fully realize the benefit. We had $167 million of deferred tax assets for NOL carryforwards related to certain non-U.S. taxing jurisdictions that are primarily from countries with indefinite carryforward periods. | ||||||||||||||
We regularly review our deferred tax assets for recoverability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. In assessing the need for a valuation allowance for our deferred tax assets, we considered all available positive and negative evidence, including our ability to carry back operating losses to prior periods, the reversal of deferred tax liabilities, tax planning strategies and projected future taxable income. In assessing the need for a valuation allowance against our U.S. deferred tax assets, we also gave specific consideration to goodwill and intangible impairment charges recorded in the last three years (see Note 7, Goodwill and Intangible Assets) and the charges for the settlement of the litigation with AMR (see Note 20, Commitments and Contingencies). Considering these factors, we established a valuation allowance of approximately $86 million against our U.S. deferred tax assets as of December 31, 2013. In addition, we have an allowance on the U.S. deferred tax assets of TVL Common, Inc. that was merged into our capital structure on December 31, 2012 of $5 million at December 31, 2013 on the non-U.S. deferred tax assets of our lastminute.com subsidiaries of $163 million and $177 million as of December 31, 2013 and 2012, respectively. We reassess these assumptions regularly which could cause an increase or decrease to the valuation allowance resulting in an increase or decrease in the effective tax rate, and could materially impact our results of operations. | ||||||||||||||
It is our policy to recognize penalties and interest accrued related to income taxes as a component of the provision (benefit) for income taxes. During the years ended December 31, 2013 and 2011, we recognized an expense of $1 million and a benefit of $1 million, respectively. During the year ended December 31, 2012, amounts recognized for penalties and interest were not material to our results of operations. As of December 31, 2013 and 2012, we had cumulative accrued interest and penalties of approximately $5 million and $1 million, respectively. | ||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(Amounts in thousands) | ||||||||||||||
Balance at beginning of year | $ | 54,016 | $ | 39,080 | $ | 38,072 | ||||||||
Additions for tax positions taken in the current year | 10,874 | 16,367 | 3,016 | |||||||||||
Additions for tax positions of prior years | 5,572 | 3,584 | 1,050 | |||||||||||
Reductions for tax positions of prior years | (196 | ) | (3,113 | ) | (1,691 | ) | ||||||||
Reductions for tax positions of expired statute of limitations | (3,573 | ) | (1,902 | ) | (1,367 | ) | ||||||||
Settlements | (5,452 | ) | — | — | ||||||||||
Balance at end of year | $ | 61,241 | $ | 54,016 | $ | 39,080 | ||||||||
As of December 31, 2013, 2012 and 2011, the amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $58 million, $54 million and $39 million, respectively. | ||||||||||||||
We are subject to U.S. federal income tax as well as income tax of multiple state, local, and non-U.S. jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world. In February of 2014, the Internal Revenue Service notified us that they would soon begin examination of our federal income tax returns for the 2011 and 2012 tax years. We do not expect that the results of this examination will have a material effect on our financial condition or results of operations. The U.S. federal statute of limitations is closed for years prior to 2007. With few exceptions, we are no longer subject to state, local, or non-U.S. tax examinations by tax authorities for years prior to 2008. | ||||||||||||||
The Company believes that it is reasonably possible that $9 million in unrecognized tax benefits may be resolved in the next twelve months. |
Debt
Debt | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Debt | 8. Debt | 11. Debt | ||||||||||||||||||||||||||||||||
In April 2014, we completed an initial public offering of our common stock and utilized the net proceeds to repay (i) $296 million aggregate principal amount of our Term Loan C (as defined below) and (ii) $320 million aggregate principal amount of our 2019 Notes (as defined below) at a redemption price of 108.5% of the principal amount, which represents the maximum amount of the contingent call option exercisable in the event of an equity offering. As a result of the prepayments on Term Loan C and the 2019 Notes, we recorded an extinguishment loss of $31 million which includes a $27 million redemption premium on the 2019 Notes. | The following table sets forth our outstanding debt: | |||||||||||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, our outstanding debt included in our consolidated balance sheets totaled $3,088 million and $3,730 million, respectively, net of unamortized discounts of $15 million and $20 million, respectively. The following table sets forth the face values of our outstanding debt as of September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||
Rate | Maturity | September 30, | December 31, | Rate | Maturity | 2013 | 2012 | |||||||||||||||||||||||||||
2014 | 2013 | (Amounts in thousands) | ||||||||||||||||||||||||||||||||
Senior secured credit facilities: | Senior secured credit facilities: | |||||||||||||||||||||||||||||||||
Term Loan B | L+3.00 | % | February 2019 | $ | 1,743,938 | $ | 1,757,250 | Term Loan B | L+4.00 | % | Feb-19 | $ | 1,747,378 | $ | — | |||||||||||||||||||
Incremental term loan facility | L+3.00 | % | Feb-19 | 346,500 | 349,125 | Incremental term loan facility | L+3.50 | % | Feb-19 | 349,125 | — | |||||||||||||||||||||||
Term Loan C | L+2.50 | % | December 2017 | 49,313 | 361,250 | Term Loan C | L+3.00 | % | December 2017 | 360,477 | — | |||||||||||||||||||||||
Revolver, $370 million | L+2.75 | % | Feb-19 | — | — | Revolving credit facility | L+3.75 | % | Feb-18 | — | — | |||||||||||||||||||||||
Revolver, $35 million | L+3.25 | % | Feb-18 | — | — | Initial term loan facility | L+2.00 | % | September 2014 | — | 238,335 | |||||||||||||||||||||||
Senior unsecured notes due 2016 | 8.35 | % | Mar-16 | 400,000 | 400,000 | First extended term loan facility | L+5.75 | % | Sep-17 | — | 1,162,622 | |||||||||||||||||||||||
Senior secured notes due 2019 | 8.5 | % | May-19 | 480,000 | 800,000 | Second extended term loan facility | L+5.75 | % | December 2017 | — | 401,515 | |||||||||||||||||||||||
Mortgage facility | 5.8 | % | Mar-17 | 82,457 | 83,286 | Incremental term loan facility | L+6.00 | % | December 2017 | — | 370,536 | |||||||||||||||||||||||
Senior unsecured notes due 2016 | 8.35 | % | March 2016 | 389,321 | 385,099 | |||||||||||||||||||||||||||||
Face value of total debt outstanding | 3,102,208 | 3,750,911 | Senior secured notes due 2019 | 8.5 | % | May 2019 | 799,823 | 801,712 | ||||||||||||||||||||||||||
Less current portion of debt outstanding | (22,418 | ) | (86,117 | ) | Mortgage facility | 5.8 | % | March 2017 | 83,541 | 84,340 | ||||||||||||||||||||||||
Face value of long-term debt outstanding | $ | 3,079,790 | $ | 3,664,794 | Total debt | $ | 3,729,665 | $ | 3,444,159 | |||||||||||||||||||||||||
Senior Secured Credit Facilities | Current portion of debt | 86,117 | 23,232 | |||||||||||||||||||||||||||||||
On February 19, 2013, Sabre GLBL Inc. entered into an agreement that amended and restated its existing senior secured credit facilities (the “Amended and Restated Credit Agreement”). The new agreement replaced (i) the existing initial term loans with new classes of term loans of $1,775 million (the “Term Loan B”) and $425 million (the “Term Loan C”) and (ii) the existing revolver with a new revolver of $352 million (the “Revolver”). | Long-term debt | 3,643,548 | 3,420,927 | |||||||||||||||||||||||||||||||
On September 30, 2013, we entered into an agreement for an incremental term loan facility to Term Loan B (the “Incremental Term Loan Facility”), having a face value of $350 million and providing total net proceeds of $350 million. We have used a portion, and intend to use the remainder of the proceeds of the Incremental Term Loan Facility, for working capital, general corporate purposes and ongoing and future strategic actions related to Travelocity. The Incremental Term Loan Facility matures on February 19, 2019 and initially bore interest at a rate equal to the LIBOR rate, subject to a 1.00% floor, plus 3.50% per annum. It includes a provision for increases in interest rates to maintain a difference of not more than 50 basis points relative to future term loan extensions or refinancing of amounts under the Amended and Restated Credit Agreement. | ||||||||||||||||||||||||||||||||||
On February 20, 2014, we entered into a series of amendments to our Amended and Restated Credit Agreement (the “Repricing Amendments”) the first of which reduced the Term Loan B’s applicable margin for Eurocurrency and Base rate borrowings to 3.25% and 2.25%, respectively, with a step down to 3.00% and 2.00%, respectively, if the Senior Secured Leverage Ratio (as defined in the Amended and Restated Credit Agreement) is less than or equal to 3.25 to 1.00. It also reduced the Eurocurrency rate floor to 1.00% and the Base rate floor to 2.00%. | Total debt | $ | 3,729,665 | $ | 3,444,159 | |||||||||||||||||||||||||||||
The Repricing Amendments extended the maturity date of $317 million of the $352 million Revolver to February 19, 2019. The Repricing Amendments also provided for an incremental revolving commitment due February 19, 2019 of $53 million, increasing the Revolver from $352 million to $405 million. The extended and incremental revolving commitments, totaling $370 million (the “Extended Revolver”), reduced the applicable margins to 3.00% for Eurocurrency and 2.00% for Base rate borrowings, with a step down to 2.75% and 1.75%, respectively, if the Senior Secured Leverage Ratio is less than or equal to 3.25 to 1.00. There were no changes in the maturity date and applicable margins of the unextended revolving commitments of $35 million (“Unextended Revolver”). The Extended Revolver also includes an accelerated maturity date of November 19, 2018 if, as of that date, borrowings under the Term Loan B (or permitted refinancing thereof) remain outstanding and mature before February 18, 2020. | ||||||||||||||||||||||||||||||||||
Sabre GLBL Inc.’s obligations under the Amended and Restated Credit Agreement are guaranteed by Sabre Holdings and each of Sabre GLBL Inc.’s wholly-owned material domestic subsidiaries, except unrestricted subsidiaries. We refer to these guarantors together with Sabre GLBL Inc., as the Loan Parties. The Amended and Restated Credit Agreement is secured by (i) a first priority security interest on the equity interests in Sabre GLBL Inc. and each other Loan Party that is a direct subsidiary of Sabre GLBL Inc. or another Loan Party, (ii) 65% of the issued and outstanding voting (and 100% of the non-voting) equity interests of each wholly-owned material foreign subsidiary of Sabre GLBL Inc. that is a direct subsidiary of Sabre GLBL Inc. or another Loan Party, and (iii) a blanket lien on substantially all of the tangible and intangible assets of the Loan Parties. | Amended and Restated Senior Secured Credit Facilities | |||||||||||||||||||||||||||||||||
Under the Amended and Restated Credit Agreement, the Loan Parties are subject to certain customary non-financial covenants, as well as a maximum Senior Secured Leverage Ratio, which applies if our Revolver utilization exceeds certain thresholds and is calculated as Senior Secured Debt (net of cash) to EBITDA, as defined by the agreement. This ratio was 5.5 to 1.0 for 2013 and is 5.0 to 1.0 for 2014. The definition of EBITDA is based on a trailing twelve months EBITDA adjusted for certain items including non-recurring expenses and the pro forma impact of cost saving initiatives. As of September 30, 2014, we are in compliance with all covenants under the Amended and Restated Credit Agreement. | On February 19, 2013, Sabre GLBL Inc. amended and restated the previous credit agreement with a new agreement (the “Amended and Restated Credit Agreement”). The new agreement replaced (i) the existing initial term loans with new classes of term loans of $1,775 million (the “Term Loan B”) and $425 million (the “Term Loan C”) and (ii) the existing revolver with a new revolver of $352 million (the “Revolver”). We used $14 million of term loan proceeds and $2 million of cash on hand to pay debt issuance and third-party debt modification costs resulting from this transaction. | |||||||||||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, we had no outstanding balance under the Extended and Unextended Revolver. As of September 30, 2014, we had outstanding letters of credit totaling $60 million, which reduces our overall credit capacity under the Revolver. As of December 31, 2013, we had outstanding letters of credit totaling $67 million, of which $66 million reduced our overall credit capacity under the Revolver and $1 million was collateralized with restricted cash. | The Amended and Restated Credit Agreement includes provisions that require us to pay a 1% fee (the “Repricing Premium”) to the respective lenders if we pay off or refinance all or a portion of the Term Loan B within one year –and the Term Loan C within six months– of February 19, 2013. This Repricing Premium is applicable only to the portion paid off or refinanced and does not apply to the scheduled quarterly amortization payments. | |||||||||||||||||||||||||||||||||
Principal Payments | On September 30, 2013, we entered into an agreement for an incremental term loan facility to Term Loan B (the “Incremental Term Loan Facility”), having a face value of $350 million and providing total net proceeds of $350 million. We have used a portion, and intend to use the remainder, of the proceeds of the Incremental Term Loan Facility for working capital and one-time costs associated with the Expedia SMA and sale of TPN, including the payment of travel suppliers for travel consumed that originated on our technology platforms, and for general corporate purposes. The Incremental Term Loan Facility matures on February 19, 2019 and includes a 1% Repricing Premium if we pay off or refinance all or a portion of the loan with incurrence of long term bank debt before February 19, 2014. This loan currently bears interest at a rate equal to the LIBOR rate, subject to a 1.00% floor, plus 3.50% per annum. It includes a provision for increases in interest rates to maintain a difference of not more than 50 basis points relative to future term loan extensions or refinancing of amounts under the Amended and Restated Credit Agreement. | |||||||||||||||||||||||||||||||||
Term Loan B and the Incremental Term Loan Facility mature on February 19, 2019, and require principal payments in equal quarterly installments of 0.25%. Term Loan C matures on December 31, 2017. As a result of the April 2014 prepayment, quarterly principal payments on Term Loan C are no longer required. We are obligated to pay $17 million on September 30, 2017 and the remaining balance on December 31, 2017. The Extended Revolver matures on February 19, 2019 and the Unextended Revolver matures on February 19, 2018. For the nine months ended September 30, 2014, we made $328 million of principal payments of which $296 million was the prepayment on Term Loan C. We are scheduled to make $22 million in principal payments over the next twelve months. | ||||||||||||||||||||||||||||||||||
We are also required to pay down the term loans by an amount equal to 50% of annual excess cash flow, as defined in our Amended and Restated Credit Agreement. This percentage requirement may decrease or be eliminated if certain leverage ratios are achieved. As a result of the Amended and Restated Credit Agreement, no excess cash flow payment was required in 2013 with respect to our results for the year ended December 31, 2012. Additionally, based on our results for the year ended December 31, 2013, we are not required to make an excess cash flow payment in 2014. In the event of certain asset sales or borrowings, the Amended and Restated Credit Agreement requires that we pay down the term loans with the resulting proceeds. Subject to the repricing premium discussed above, we may repay the indebtedness at any time prior to the maturity dates without penalty. | Sabre GLBL Inc.’s obligations under the Amended and Restated Credit Agreement are guaranteed by Sabre Holdings and each of Sabre GLBL Inc.’s wholly-owned material domestic subsidiaries, except unrestricted subsidiaries. We refer to these guarantors together with Sabre GLBL Inc., as the Loan Parties. The Amended and Restated Credit Agreement is secured by (i) a first priority security interest on the equity interests in Sabre GLBL Inc. and each other Loan Party that is a direct subsidiary of Sabre GLBL Inc. or another Loan Party, (ii) 65% of the issued and outstanding voting (and 100% of the non-voting) equity interests of each wholly-owned material foreign subsidiary of Sabre GLBL Inc. that is a direct subsidiary of Sabre GLBL Inc. or another Loan Party, and (iii) a blanket lien on substantially all of the tangible and intangible assets of the Loan Parties. | |||||||||||||||||||||||||||||||||
Interest | Under the Amended and Restated Credit Agreement, the loan parties are subject to certain customary non-financial covenants, as well as a maximum Senior Secured Leverage Ratio, which applies if our Revolver utilization exceeds certain thresholds and is calculated as Senior Secured Debt (net of cash) to EBITDA, as defined by the agreement. This ratio was 5.5 to 1.0 for 2013 and is 5.0 to 1.0 for 2014. The definition of EBITDA is based on a trailing twelve months EBITDA adjusted for certain items including non-recurring expenses and the pro forma impact of cost saving initiatives. As of December 31, 2013, we are in compliance with all covenants under the Amended and Restated Agreement. | |||||||||||||||||||||||||||||||||
Borrowings under the Amended and Restated Credit Agreement bear interest at a rate equal to either, at our option: (i) the Eurocurrency rate plus an applicable margin for Eurocurrency borrowings as set forth below, or (ii) a base rate determined by the highest of (1) the prime rate of Bank of America, (2) the federal funds effective rate plus 1/2% or (3) LIBOR plus 1.00%, plus an applicable margin for base rate borrowings as set forth below. The Eurocurrency rate is based on LIBOR for all U.S. dollar borrowings and has a floor. | As of December 31, 2013 and 2012, we had no outstanding balance on the revolving credit facilities. As of December 31, 2013, we had outstanding letters of credit totaling $67 million, of which $66 million reduces our overall credit capacity under the Revolver and $1 million is collateralized with restricted cash. As of December 31, 2012, we had outstanding letters of credit totaling $114 million of which $112 million reduces our overall credit capacity under the revolver and $2 million is collateralized with restricted cash. | |||||||||||||||||||||||||||||||||
Principal Payments | ||||||||||||||||||||||||||||||||||
Term Loan B and the Incremental Term Loan Facility mature on February 19, 2019, and require principal payments in equal quarterly installments of 0.25%. Term Loan C matures on December 31, 2017 and requires principal payments in equal quarterly installments of 3.75% in 2014, increasing to 4.375%, 5.625% and 7.5% in 2015, 2016 and 2017, respectively. The Revolver matures on February 19, 2018. For the year ended December 31, 2013, we made $82 million of scheduled quarterly principal payments. We are scheduled to make $85 million in principal payments over the next twelve months. | ||||||||||||||||||||||||||||||||||
Eurocurrency borrowings | Base rate borrowings | We are also required to pay down the term loans by an amount equal to 50% of excess cash flow, as determined by leverage ratios in our Amended and Restated Credit Agreement, each fiscal year end after our annual consolidated financial statements are delivered. This percentage requirement may decrease or be eliminated if certain leverage ratios are achieved. As a result of the Amended and Restated Credit Agreement, no excess cash flow payment was required in 2013 with respect to our results for the year ended December 31, 2012. Additionally, based on our results for the year ended December 31, 2013, we are not required to make an excess cash flow payment in 2014. In the event of certain asset sales or borrowings, the Amended and Restated Credit Agreement requires that we pay down the term loan with the resulting proceeds. Subject to the Repricing Premium discussed above, we may repay the indebtedness at any time prior to the maturity dates without penalty. | ||||||||||||||||||||||||||||||||
Applicable Margin (1) | Floor | Applicable Margin (1) | Floor | Interest | ||||||||||||||||||||||||||||||
Term Loan B, prior to Repricing Amendments | 4 | % | 1.25 | % | 3 | % | 2.25 | % | Through February 27, 2012 our initial term loan facility bore interest at London Interbank Offered Rate (“LIBOR”) plus an applicable margin of 2%. After this date and until February 18, 2013, the applicable margin on the first extended portion of our initial term loan facility increased to 5.75% in connection with an amendment and restatement of our previous credit agreement completed on February 28, 2012. On May 9, 2012, we amended and restated the previous credit agreement for a second extended portion of our initial term loan facility to increase the applicable margin on those borrowings to 5.75% which we retained until February 18, 2013. The $371 million of our incremental term loan entered into on August 15, 2012 bore interest at a rate equal to LIBOR, subject to a 1.25% floor, plus 6.00% per annum. The remaining $238 million of our initial term loan facility outstanding at December 31, 2012 continued with a 2.00% applicable margin until February 18, 2013. We elected the one-month LIBOR as the floating interest rate on all $2,173 million of our initial term loan facility outstanding at December 31, 2012, and interest payments were due on the last day of each month. Interest on the outstanding loan was subject to interest rate swaps in a cash flow hedging relationship (see Note 12, Derivatives). | |||||||||||||||||||||||||
Term Loan B, subsequent to Repricing Amendments | 3.25 | % | 1 | % | 2.25 | % | 2 | % | Beginning February 19, 2013, borrowings under the term loan agreement bear interest at a rate equal to either, at our option: (i) the Eurocurrency rate plus an applicable margin for Eurocurrency borrowings as set forth below, or (ii) a base rate determined by the highest of (1) the prime rate of Bank of America, (2) the federal funds effective rate plus 1/2% or (3) a LIBOR rate plus 1.00%, plus an applicable margin for base rate borrowings as set forth below. The Eurocurrency rate is based on LIBOR for all U.S. dollar borrowings and has a floor. | |||||||||||||||||||||||||
Incremental term loan facility | 3.5 | % | 1 | % | 2.5 | % | 2 | % | ||||||||||||||||||||||||||
Term Loan C | 3 | % | 1 | % | 2 | % | 2 | % | ||||||||||||||||||||||||||
Revolver, $370 million | 3 | % | N/A | 2 | % | N/A | Eurocurrency borrowings | Base rate borrowings | ||||||||||||||||||||||||||
Revolver, $35 million | 3.75 | % | N/A | 2.75 | % | N/A | Applicable Margin | Floor | Applicable Margin | Floor | ||||||||||||||||||||||||
Term Loan B | 4 | % | 1.25 | % | 3 | % | 2.25 | % | ||||||||||||||||||||||||||
-1 | Applicable margins do not reflect potential step downs which are determined by the Senior Secured Leverage Ratio. See below for additional information. | Incremental term loan facility | 3.5 | % | 1 | % | 2.5 | % | 2 | % | ||||||||||||||||||||||||
Applicable margins for Term Loan B and the Extended Revolver step down 25 basis points for any quarter if the Senior Secured Leverage Ratio is less than or equal to 3.25 to 1.00. Applicable margins for all other borrowings under the Amended and Restated Credit Agreement step down by 50 basis points for any quarter if the Senior Secured Leverage Ratio is less than or equal to 3.0 to 1.0. Applicable margins increase to maintain a difference of not more than 50 basis points relative to future term loan extensions or refinancings. In addition, we are required to pay a quarterly commitment fee of 0.375% per annum for unused revolving commitments. The commitment fee may increase to 0.5% per annum if the Senior Secured Leverage Ratio is greater than 4.0 to 1.0. | Term Loan C | 3 | % | 1 | % | 2 | % | 2 | % | |||||||||||||||||||||||||
We have elected the three-month LIBOR as the floating interest rate on all $2,140 million of our outstanding term loans. As of September 30, 2014, the interest rate, including applicable margin, is 4.0% for the Term Loan B of $1,744 million; 4.0% for the Incremental Term Loan Facility of $347 million; and 3.5% for the Term Loan C of $49 million. Interest payments are due on the last day of each quarter. Interest on a portion of the outstanding loan is hedged with interest rate swaps (see Note 9, Derivatives). | Revolving credit facility | 3.75 | % | N/A | 2.75 | % | N/A | |||||||||||||||||||||||||||
In connection with the prepayment on Term Loan C and the Repricing Amendments, we recognized losses on extinguishment of debt of $1 million and $3 million, respectively. In addition, we incurred costs totaling $3 million as a result of the Repricing Amendments which were recorded as interest expense. In 2013, we incurred costs totaling $19 million associated with the Amended and Restated Credit Agreement and the Incremental Term Loan Facility. We charged $14 million to interest expense during the first quarter of 2013, and capitalized $3 million and $2 million as debt issuance costs during the first and third quarter of 2013, respectively. We also recognized a loss on extinguishment of debt of $12 million for the nine months ended September 30, 2013 as a result of the Amended and Restated Credit Agreement. As of September 30, 2014, we had $24 million of unamortized debt issuance costs included in other assets in our consolidated balance sheets associated with all debt transactions under the Amended and Restated Credit Agreement and the previous senior secured credit agreement. These costs are being amortized to interest expense over the maturity period of the Amended and Restated Credit Agreement. Our effective interest rates for the three and nine months ended September 30, 2014 and 2013, inclusive of amounts charged to interest expense as described above, are as follows: | Applicable margins step down by 50 basis points for any quarter if the Senior Secured Leverage Ratio is less than or equal to 3.0 to 1.0. Applicable margins increase to maintain a difference of not more than 50 basis points relative to future term loan extensions or refinancings. In addition, we are required to pay a quarterly commitment fee of 0.375% per annum for unused revolving commitments. The commitment fee may increase to 0.500% per annum if the Senior Secured Leverage Ratio is greater than 4.0 to 1.0. | |||||||||||||||||||||||||||||||||
We have elected the three-month LIBOR as the floating interest rate on all $2,457 million of our outstanding term loans. As of December 31, 2013, the interest rate on these borrowings is 5.25% including an applicable margin of 4.00% for $1,747 million; 4.50% including an applicable margin of 3.50% for $349 million; and 4.00% including an applicable margin of 3.00% for $360 million of our outstanding term loans. Interest payments are due on the last day of each quarter. Interest on a portion of the outstanding loan is hedged with interest rate swaps (see Note 12, Derivatives). | ||||||||||||||||||||||||||||||||||
In 2013, we incurred costs totaling $19 million associated with the Amended and Restated Credit Agreement and the Incremental Term Loan Facility of which $14 million was charged to interest expense during the year ended December 31, 2013 and $5 million was capitalized as debt issuance costs. We also recognized a loss on extinguishment of debt of $12 million as a result of the Amended and Restated Credit Agreement. In 2012, we incurred costs totaling $38 million associated with the amendment and extension of certain facilities under our previous credit agreement of which $8 million was charged to interest expense during the year ended December 31, 2012 and $30 million was capitalized as debt issuance costs. In addition, as a result of prepayments under our previous credit agreement, we recognized a charge of $10 million to interest expense related to accelerated amortization of debt issuance costs during the year ended December 31, 2012. As of December 31, 2013, we had $31 million of unamortized debt issuance costs included in other assets in our consolidated balance sheet associated with all debt transactions under the Amended and Restated Credit Agreement and the previous credit agreement. These costs are being amortized to interest expense over the maturity period of the Amended and Restated Credit Agreement. | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Our effective interest rates for the years ended December 31, 2013, 2012 and 2011, inclusive of the accelerated amortization described above, are as follows: | ||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Including the impact of interest rate swaps | 5.25 | % | 6.26 | % | 5.64 | % | 7.15 | % | Year Ended December 31, | |||||||||||||||||||||||||
Excluding the impact of interest rate swaps | 4.5 | % | 5.51 | % | 4.94 | % | 6.43 | % | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Senior Unsecured Notes | Including the impact of interest rate swaps | 6.86 | % | 6.53 | % | 4.31 | % | |||||||||||||||||||||||||||
As of September 30, 2014, we have, at face value, $400 million in senior unsecured notes currently bearing interest at a rate of 8.35% and maturing on March 15, 2016 (“2016 Notes”). The 2016 Notes include certain non-financial covenants, including restrictions on incurring certain types of debt, entering into certain sale and leaseback transactions and entering into mergers, consolidations or a transfer of substantially all our assets. As of September 30, 2014, we are in compliance with all covenants under the 2016 Notes. | Excluding the impact of interest rate swaps | 6.21 | % | 5.65 | % | 2.72 | % | |||||||||||||||||||||||||||
Senior Secured Notes | ||||||||||||||||||||||||||||||||||
We have, at face value, $480 million in senior secured notes bearing interest at a rate of 8.50% and maturing on May 15, 2019 (“2019 Notes”). The 2019 Notes include certain non-financial covenants, including certain restrictions on incurring certain types of indebtedness, creation of liens on certain assets, making of certain investments, and payment of dividends. These covenants are similar in nature to those existing in the Amended and Restated Credit Agreement. As of September 30, 2014, we are in compliance with all covenants under the 2019 Notes. | On February 20, 2014, we modified our Amended and Restated Credit Agreement to reduce Term Loan B’s applicable margin for both Eurocurrency and Base rate borrowings, including the related floors. The modification also provides for an incremental revolving commitment of $53 million due February 19, 2019 and extends the maturity date of $317 million of the Revolver to the same date with a provision for earlier maturity on November 19, 2018 if certain conditions are met. See Note 22, Subsequent Events. | |||||||||||||||||||||||||||||||||
The indenture to the 2019 Notes allowed us, at our option, to redeem up to 40% of the principal amount of the notes outstanding in the event of an equity offering, such as an initial public offering, until May 15, 2015. The contingent call option was at a price of 108.50%, plus accrued and unpaid interest, if any, to the date of redemption. In May 2014, we exercised our contingent call option and prepaid $320 million, or 40%, of the outstanding principal on the 2019 Notes at the redemption price of 108.5% of the principal amount. As a result of the prepayment, we recognized a loss on extinguishment of $31 million, which included the $27 million redemption premium. | Publicly Issued Senior Unsecured Notes | |||||||||||||||||||||||||||||||||
Mortgage Facility | In March 2006, Sabre Holdings issued $400 million in 2016 Notes, bearing interest at a rate of 6.35% and maturing March 15, 2016, in an underwritten public offering resulting in net cash proceeds after expenses of approximately $397 million. The 2016 Notes include certain non-financial covenants, including restrictions on incurring certain types of debt or entering into certain sale and leaseback transactions. We used all of the net proceeds plus available cash and cash equivalents and marketable securities to prepay $400 million of a bridge facility used to finance the acquisition of our subsidiary lastminute.com. Under the terms of the 2016 Notes, we paid $29 million in interest charges in 2007 and are obligated to pay $34 million per year afterwards until 2016. Interest payments are due in March and September each year. The interest rate payable on the 2016 Notes increased to 8.35% effective March 16, 2007 due to a credit rating decline resulting from the acquisition of Sabre Holdings. As of December 31, 2013, we are in compliance with all covenants under the indenture for the 2016 Notes. | |||||||||||||||||||||||||||||||||
We have $82 million outstanding under a mortgage facility for the buildings, land and furniture and fixtures located at our headquarters facilities in Southlake, Texas. The mortgage facility bears interest at a rate of 5.7985% per annum and matures on April 1, 2017. The mortgage facility includes certain customary non-financial covenants, including restrictions on incurring liens other than permitted liens, dissolving the borrower or changing our business, forgiving debt, changing our principal place of business and transferring the property. As of September 30, 2014, we are in compliance with all covenants under the mortgage facility. | In August 2001, Sabre Holdings issued $400 million in 2011 Notes, bearing interest at a rate of 7.35% and maturing August 1, 2011, in an underwritten public offering resulting in net cash proceeds to us of approximately $397 million. The interest payments were due in February and August each year. The 2011 Notes included certain non-financial covenants, including restrictions on incurring certain types of debt or entering into certain sale and leaseback transactions. In April 2009, we reduced our debt obligations by $76 million for the 2011 Notes. During the quarter ended September 30, 2011, we paid down the remaining $324 million of principal and $12 million of accrued interest on our unsecured notes which matured on August 1, 2011. | |||||||||||||||||||||||||||||||||
On March 30, 2007, in connection with the acquisition of Sabre Holdings by Sabre Corporation, Sabre Holdings filed Form 15 with the Securities and Exchange Commission and terminated its reporting obligations with respect to its common stock, the 2011 Notes and the 2016 Notes under the Securities Exchange Act of 1934, as amended. In connection with the acquisition of Sabre Holdings, we also amended and restated the guarantee by Sabre GLBL of the 2011 Notes and the 2016 Notes in response to a request from the rating agencies so that the 2011 Notes and the 2016 Notes would not be structurally subordinated to Sabre GLBL’s obligations under its senior secured credit facilities. Sabre Corporation has not assumed this guarantee and is not otherwise guaranteeing the 2011 Notes, which have since been repaid, or the 2016 Notes. | ||||||||||||||||||||||||||||||||||
Aggregate Maturities | Senior Secured Notes | |||||||||||||||||||||||||||||||||
As of September 30, 2014, aggregate maturities of our long-term debt were as follows (in thousands): | On May 9 and September 20, 2012, Sabre GLBL Inc. issued a total of $800 million in senior secured notes ($400 million each) bearing interest at a rate of 8.50% and maturing on May 15, 2019, pursuant to Rule 144A under the Securities Act of 1933, as amended, (“Securities Act”), resulting in net proceeds of approximately $796 million after capitalized expenses of $5 million. The May 9 and September 20, 2012 offerings (collectively “2019 Notes”) include certain non-financial covenants, including restrictions on incurring certain types of indebtedness, creation of liens on certain assets, making of certain investments, and payment of dividends. These covenants are similar in nature to those existing on the senior secured credit facilities. The 2019 Notes have not and will not be registered under the Securities Act. We used $679 million of the net proceeds to pay off certain lenders under our previous senior secured credit facilities, and retained the remainder for general corporate purposes. A portion of the retained funds was subsequently used for funding the acquisition of PRISM (See Note 3, Acquisitions). | |||||||||||||||||||||||||||||||||
Interest is calculated from the date of the original issuance, or May 9, 2012, on the 2019 Notes. We are obligated to pay $68 million in interest per year until 2019. Payments are due in May and November each year. Additionally, capitalized costs related to these transactions are being amortized to interest expense over the 2019 Notes maturity period. | ||||||||||||||||||||||||||||||||||
Amount | The indenture to the senior secured notes allows the Company, at its option, to redeem up to 40% of the principal amount of the notes outstanding in the event of an equity offering, such as an initial public offering, until May 15, 2015. The contingent call option is at a price of 108.50%, plus accrued and unpaid interest, if any, to the date of redemption. In order to exercise the contingent call option, at least 50% of the aggregate principal originally issued must remain outstanding after the option is exercised, and the redemption must occur within 120 days of the equity offering closing date. The fair value of the contingent call option that met the definition of an embedded derivative was a gain of $2 million at December 31, 2013, and was not material as of December 31, 2012. The call option is recorded as a component of long term debt, with an offsetting unrealized gain in other, net. See Note 12, Derivatives and Note 13, Fair Value Measurements. | |||||||||||||||||||||||||||||||||
Three months ending December 31, 2014 | $ | 5,601 | Mortgage Facility | |||||||||||||||||||||||||||||||
2015 | 22,435 | On March 29, 2007, we purchased the buildings, land and furniture and fixtures located at our headquarter facilities in Southlake, Texas, which were previously financed under a capital lease facility. The total purchase price of the assets was $104 million. The purchase was financed through $85 million raised by a mortgage facility that we entered into and $19 million from cash on hand. The $85 million mortgage facility carries an interest rate of 5.8% and is secured by the headquarters building which had a net book value of $83 million as of December 31, 2013. Payments made through March 1, 2012 were applied to accrued interest only. Subsequent to that date, payments are also applied to the principal balance of the facility. Payments are due on the first business day of each month. The facility matures on March 1, 2017 and all unpaid principal will be due at that time. As of December 31, 2013 we are in compliance with all covenants set forth in the facility agreement. | ||||||||||||||||||||||||||||||||
2016 | 422,493 | Note Payable to a Joint Venture Partner | ||||||||||||||||||||||||||||||||
2017 | 150,303 | On March 31, 2002 we entered into a promissory note with one of our joint venture partners. The note carried an interest rate of 8.0% and matured on March 31, 2012, having a zero balance as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||
2018 | 21,250 | |||||||||||||||||||||||||||||||||
Thereafter | 2,480,125 | |||||||||||||||||||||||||||||||||
Total | $ | 3,102,208 | ||||||||||||||||||||||||||||||||
Derivatives
Derivatives | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||
Derivatives | 9. Derivatives | 12. Derivatives | ||||||||||||||||||||||||||||||||||||
Hedging Objectives—We are exposed to certain risks relating to ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk and interest rate risk. Forward contracts on various foreign currencies are entered into to manage the foreign currency exchange rate risk on operational exposure denominated in foreign currencies. Interest rate swaps are entered into to manage interest rate risk associated with our floating-rate borrowings. In accordance with authoritative guidance on accounting for derivatives and hedging, we designate foreign currency forward contracts as cash flow hedges on operational exposure and interest rate swaps as cash flow hedges of floating-rate borrowings. | Hedging Objectives—We are exposed to certain risks relating to ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk and interest rate risk. Forward contracts on various foreign currencies are entered into to manage the foreign currency exchange rate risk on operational exposure denominated in foreign currencies. Interest rate swaps are entered into to manage interest rate risk associated with our floating-rate borrowings. In accordance with authoritative guidance on accounting for derivatives and hedging, we designate foreign currency forward contracts as cash flow hedges on operational exposure and interest rate swaps as cash flow hedges of floating-rate borrowings. | |||||||||||||||||||||||||||||||||||||
Cash Flow Hedging Strategy—To protect against the reduction in value of forecasted foreign currency cash flows, we have instituted a foreign currency cash flow hedging program. We hedge portions of our expenses denominated in foreign currencies with forward contracts. When the dollar strengthens significantly against the foreign currencies, the decline in present value of future foreign currency revenue is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. | Cash Flow Hedging Strategy—For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (ineffective portion) or hedge components excluded from the assessment of effectiveness, are recognized in the consolidated statements of operations during the current period. | |||||||||||||||||||||||||||||||||||||
We enter into interest rate swap agreements to manage interest rate risk exposure. The interest rate swap agreements modify our exposure to interest rate risk by converting floating-rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense and net earnings. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the agreements without an exchange of the underlying principal amount. | To protect against the reduction in value of forecasted foreign currency cash flows resulting from export sales over the next year, we have instituted a foreign currency cash flow hedging program. We hedge portions of our expenses denominated in foreign currencies with forward contracts. When the dollar strengthens significantly against the foreign currencies, the decline in present value of future foreign currency revenue is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. | |||||||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (ineffective portion), and hedge components excluded from the assessment of effectiveness, are recognized in the consolidated statements of operations during the current period. | ||||||||||||||||||||||||||||||||||||||
Our interest rate swaps were not designated in a cash flow hedging relationship because we no longer qualified for hedge accounting treatment following the amendment and restatement of our senior secured credit facility in February of 2013 (see Note 8, Debt). Derivatives not designated as hedging instruments are carried at fair value with changes in fair value reflected in the consolidated statement of operations. | We have entered into interest rate swap agreements to manage interest rate risk exposure. The interest rate swap agreements utilized effectively modify our exposure to interest rate risk by converting floating-rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense and net earnings. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the agreements without an exchange of the underlying principal amount. | |||||||||||||||||||||||||||||||||||||
Forward Contracts—In order to hedge our operational exposure to foreign currency movements, we are a party to certain foreign currency forward contracts that extend until September 2015. We have designated these instruments as cash flow hedges. No hedging ineffectiveness was recorded in earnings relating to the forward contracts during the three and nine months ended September 30, 2014 and 2013. As the outstanding contracts settle, it is estimated that $4 million in losses will be reclassified from other comprehensive income (loss) to earnings. We have also entered into short-term forward contracts to hedge a portion of our foreign currency exposure related to travel supplier liability payments. As part of our risk management strategy, these derivatives were not designated for hedge accounting at inception; therefore, the change in fair value of these contracts is recorded in our consolidated statements of operations. The adjustments to fair value of our foreign currency forward contracts for the three and nine months ended September 30, 2014 were not material to our results of operations. | Our interest rate swaps are not designated in a cash flow hedging relationship because we no longer qualified for hedge accounting treatment following the amendment and restatement of our Senior Secured Credit Facility in February of 2013 (see Note 11, Debt). Derivatives not designated as hedging instruments are carried at fair value with changes in fair value reflected in the consolidated statement of operations. | |||||||||||||||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, we had the following unsettled purchased foreign currency forward contracts that were entered into to hedge our operational exposure to foreign currency movements (in thousands, except for average contract rates): | Forward Contracts—In order to hedge our operational exposure to foreign currency movements, we are a party to certain foreign currency forward contracts that extend until December 1, 2014. We have designated these instruments as cash flow hedges. No hedging ineffectiveness was recorded in earnings relating to the forwards during the years ended December 31, 2013, 2012, or 2011. As the outstanding contracts settle, it is estimated that $5 million in gains will be reclassified from other comprehensive income (loss) to earnings. We have also entered into short-term forward contracts to hedge a portion of our foreign currency exposure related to travel supplier liability payments. As part of our risk management strategy, these derivatives were not designated for hedge accounting at inception; therefore, the change in fair value of these contracts is recorded in our consolidated statements of operations. | |||||||||||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, we had the following unsettled purchased foreign currency forward contracts that were entered into to hedge our operational exposure to foreign currency movements: | ||||||||||||||||||||||||||||||||||||||
September 30, 2014 Outstanding Notional Amount | ||||||||||||||||||||||||||||||||||||||
Buy Currency | Sell Currency | Foreign | USD | Average Contract | December 31, 2013 Outstanding Notional Amount | |||||||||||||||||||||||||||||||||
Amount | Amount | Rate | Buy Currency | Sell Currency | Foreign | USD | Average Contract | |||||||||||||||||||||||||||||||
US Dollar | Australian Dollar | 6,950 | $ | 6,195 | 0.8914 | Amount | Amount | Rate | ||||||||||||||||||||||||||||||
Euro | US Dollar | 22,750 | 30,323 | 1.3329 | (Amounts in thousands, excluding average contract rates) | |||||||||||||||||||||||||||||||||
British Pound Sterling | US Dollar | 21,950 | 36,239 | 1.651 | US Dollar | Australian Dollar | 5,625 | $ | 5,041 | 0.8962 | ||||||||||||||||||||||||||||
Indian Rupee | US Dollar | 1,074,000 | 16,680 | 0.0155 | Australian Dollar | US Dollar | 975 | 996 | 1.0215 | |||||||||||||||||||||||||||||
Polish Zloty | US Dollar | 193,800 | 61,376 | 0.3167 | Euro | US Dollar | 12,800 | 16,624 | 1.2988 | |||||||||||||||||||||||||||||
British Pound Sterling | US Dollar | 18,450 | 28,908 | 1.5668 | ||||||||||||||||||||||||||||||||||
December 31, 2013 Outstanding Notional Amount | Indian Rupee | US Dollar | 1,174,000 | 18,593 | 0.0158 | |||||||||||||||||||||||||||||||||
Buy Currency | Sell Currency | Foreign | USD | Average Contract | Polish Zloty | US Dollar | 170,400 | 52,748 | 0.3096 | |||||||||||||||||||||||||||||
Amount | Amount | Rate | ||||||||||||||||||||||||||||||||||||
US Dollar | Australian Dollar | 5,625 | $ | 5,041 | 0.8962 | December 31, 2012 Outstanding Notional Amount | ||||||||||||||||||||||||||||||||
Australian Dollar | US Dollar | 975 | 996 | 1.0215 | Buy Currency | Sell Currency | Foreign | USD | Average Contract | |||||||||||||||||||||||||||||
Euro | US Dollar | 12,800 | 16,624 | 1.2988 | Amount | Amount | Rate | |||||||||||||||||||||||||||||||
British Pound Sterling | US Dollar | 18,450 | 28,908 | 1.5668 | (Amounts in thousands, excluding average contract rates) | |||||||||||||||||||||||||||||||||
Indian Rupee | US Dollar | 1,174,000 | 18,593 | 0.0158 | Australian Dollar | US Dollar | 4,400 | $ | 4,433 | 1.0074 | ||||||||||||||||||||||||||||
Polish Zloty | US Dollar | 170,400 | 52,748 | 0.3096 | Euro | US Dollar | 20,005 | 26,168 | 1.3081 | |||||||||||||||||||||||||||||
Interest Rate Swap Contracts—In April 2007, in connection with our then existing senior secured credit facilities, we entered into six interest rate swaps, four of which matured prior to 2013. The table below sets forth the remaining two interest rate swaps which matured on September 30, 2014. | British Pound Sterling | US Dollar | 15,850 | 25,418 | 1.6036 | |||||||||||||||||||||||||||||||||
Indian Rupee | US Dollar | 1,236,000 | 21,899 | 0.0177 | ||||||||||||||||||||||||||||||||||
Polish Zloty | US Dollar | 158,450 | 48,503 | 0.3061 | ||||||||||||||||||||||||||||||||||
Notional | Interest Rate | Interest | Effective Date | Maturity Date | Interest Rate Swap Contracts—During April 2007, in connection with our senior secured credit facilities (see Note 11, Debt) with a three-month LIBOR as the floating interest rate, we entered into six interest rate swaps. Under the terms of the swaps, the interest rate payments and receipts are quarterly on the last day of January, April, July and October. The reset dates on the swaps are also the last day of January, April, July and October each year until maturity. | |||||||||||||||||||||||||||||||||
Amount | Received | Rate Paid | ||||||||||||||||||||||||||||||||||||
$400 million | 1 month LIBOR | 2.03 | % | July 29, 2011 | September 30, 2014 | The table below includes the outstanding and matured interest rate swaps relevant to the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||||||||||
$350 million | 1 month LIBOR | 2.51 | % | April 30, 2012 | September 30, 2014 | |||||||||||||||||||||||||||||||||
$750 million | Notional | Interest Rate | Interest | Effective Date | Maturity Date | |||||||||||||||||||||||||||||||||
Amount | Received | Rate Paid | ||||||||||||||||||||||||||||||||||||
The objective of the swaps was to hedge the interest payments associated with floating-rate liabilities on the notional amounts of a portion of our senior secured debt as summarized in the table above. Our interest rate swaps were not designated in a cash flow hedging relationship because we no longer qualified for hedge accounting treatment following the amendment and restatement of our senior secured credit facility in February 2013 (see Note 8, Debt). Derivatives not designated as hedging instruments are carried at fair value with changes in fair value recognized in the consolidated statements of operations. The adjustments to fair value of our interest rate swap agreements for the three and nine months ended September 30, 2014 were not material to our results of operations. | Outstanding: | $ | 400 million | 1 month LIBOR | 2.03 | % | July 29, 2011 | September 30, 2014 | ||||||||||||||||||||||||||||||
$ | 350 million | 1 month LIBOR | 2.51 | % | April 30, 2012 | 30-Sep-14 | ||||||||||||||||||||||||||||||||
The estimated fair values of our derivatives designated as hedging instruments as of September 30, 2014 and December 31, 2013 are as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||
$ | 750 million | |||||||||||||||||||||||||||||||||||||
Derivative Assets (Liabilities) | Matured: | $ | 800 million | 3 month LIBOR | 5.04 | % | April 30, 2007 | 30-Apr-12 | ||||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value as of | $ | 350 million | 3 month LIBOR | 4.99 | % | 30-Apr-07 | 30-Apr-11 | ||||||||||||||||||||||||||||||
Derivatives designated as | September 30, 2014 | December 31, 2013 | $ | 125 million | 3 month LIBOR | 5.04 | % | 30-Apr-07 | 28-Apr-11 | |||||||||||||||||||||||||||||
hedging instruments | $ | 125 million | 3 month LIBOR | 5.03 | % | 30-Apr-07 | 28-Apr-11 | |||||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid expenses | $ | — | $ | 5,374 | |||||||||||||||||||||||||||||||||
Other accrued liabilities | $ | (4,079 | ) | $ | — | $ | 1,400 million | |||||||||||||||||||||||||||||||
The effects of derivative instruments, net of taxes, on other comprehensive income (loss) (“OCI”) for the three and nine months ended September 30, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||
The objective of the swaps is to hedge the interest payments associated with floating-rate liabilities on the notional amounts of our Senior Secured Debt as summarized above. The effectiveness of the swaps is periodically assessed throughout the life of the swaps using the “hypothetical derivative method.” The hypothetical swap has terms that identically match the terms of the floating rate liability, and is therefore presumed to perfectly offset the hedged cash flows. We review the critical terms of the swaps and the hedged instrument quarterly to validate that the terms continue to match and that there has been no deterioration in the creditworthiness of the counterparties. Hedge ineffectiveness is calculated quarterly based upon the excess of the cumulative change in the fair value of the actual swap over the cumulative change in the fair value of the “perfect” hypothetical swap. The amount of ineffectiveness, if any, is recorded in earnings. For the years ended December 31, 2012 and 2011, no hedge ineffectiveness has been incurred. | ||||||||||||||||||||||||||||||||||||||
The estimated fair values of our derivatives designated as hedging instruments as of December 31, 2013 and 2012 are provided below: | ||||||||||||||||||||||||||||||||||||||
Amount of Gain (Loss) | ||||||||||||||||||||||||||||||||||||||
Recognized in OCI on | ||||||||||||||||||||||||||||||||||||||
Derivative (Effective Portion) | Derivative Assets (Liabilities) | |||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow | Three Months Ended | Nine Months Ended | Derivatives designated as | Balance Sheet Location | Fair Value as of December 31, | |||||||||||||||||||||||||||||||||
Hedging Relationships | September 30, | September 30, | hedging instruments | 2013 | 2012 | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | (Amounts in thousands) | ||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (3,799 | ) | $ | 2,752 | $ | (3,181 | ) | $ | 564 | Foreign exchange contracts | Prepaid expenses | $ | 5,374 | $ | 2,568 | ||||||||||||||||||||||
Interest rate swaps | Other accrued liabilities | — | (15,111 | ) | ||||||||||||||||||||||||||||||||||
Other noncurrent liabilities | — | (10,461 | ) | |||||||||||||||||||||||||||||||||||
Amount of Gain (Loss) Reclassified | ||||||||||||||||||||||||||||||||||||||
from Accumulated OCI into | Total | $ | 5,374 | $ | (23,004 | ) | ||||||||||||||||||||||||||||||||
Income (Effective Portion) | ||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow | Income Statement | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
Hedging Relationships | Location | September 30, | September 30, | The effects of derivative instruments, net of taxes, on other comprehensive income (loss) (“OCI”) for the years ended December 31, 2013, 2012 and 2011 are provided below: | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Cost of revenue | $ | 646 | $ | (370 | ) | $ | 4,242 | $ | 685 | ||||||||||||||||||||||||||||
As described in Note 8, Debt, on February 19, 2013 we entered into an agreement that amended and restated our existing senior secured credit facilities. As a result, a critical term of the interest rate swap agreements no longer matched the senior secured debt, and we no longer qualified for hedge accounting as of January 1, 2013. For the three and nine months ended September 30, 2014, we reclassified $4 million ($2 million, net of tax) and $11 million ($7 million, net of tax), respectively, from OCI to interest expense related to the derivatives that no longer qualify for hedge accounting. The interest rate swaps matured on September 30, 2014. | Amount of Gain (Loss) | |||||||||||||||||||||||||||||||||||||
Embedded Derivative Related to Senior Secured Notes—The 2019 Notes included a contingent call option to redeem up to 40% of the notes in the event of an equity offering at a rate of 108.50%, until May 15, 2015. This contingent call option was not clearly and closely related to the hybrid indenture and therefore required separate accounting. In May 2014, we exercised our contingent call option and prepaid 40%, or $320 million, of our 2019 Notes. In conjunction with the prepayment, the fair value of the contingent call option of $2 million was charged to loss on debt extinguishment for the nine months ended September 30, 2014. | Recognized in OCI on | |||||||||||||||||||||||||||||||||||||
Derivative (Effective Portion) | ||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
Hedging Relationships | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 2,999 | $ | 4,593 | $ | (577 | ) | |||||||||||||||||||||||||||||||
Interest rate swaps | — | (3,924 | ) | (24,092 | ) | |||||||||||||||||||||||||||||||||
Total | $ | 2,999 | $ | 669 | $ | (24,669 | ) | |||||||||||||||||||||||||||||||
Amount of Gain (Loss) Reclassified | ||||||||||||||||||||||||||||||||||||||
from Accumulated OCI into | ||||||||||||||||||||||||||||||||||||||
Income (Effective Portion) | ||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
Hedging Relationships | Location | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Cost of revenue | $ | 915 | $ | (2,890 | ) | $ | 8,508 | ||||||||||||||||||||||||||||||
Interest rate swaps | Interest expense | — | (15,906 | ) | (29,250 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 915 | $ | (18,796 | ) | $ | (20,742 | ) | ||||||||||||||||||||||||||||||
As described in Note 11, Debt, on February 19, 2013 we entered into an agreement that amended and restated our existing senior secured credit facilities. As a result, a critical term of the interest rate swap agreements no longer matched the senior secured debt, and we no longer qualified for hedge accounting as of January 1, 2013. For the year ended December 31, 2013, we reclassified $15 million, or $9 million, net of tax, from OCI to interest expense related to the derivatives that no longer qualify for hedge accounting. As of December 31, 2013, the estimated fair value of interest rate swaps not designated as hedging instruments was a $12 million liability and included in other accrued liabilities in our consolidated balance sheet. The accumulated unrealized loss related to these derivatives was $11 million at December 31, 2013 and will be amortized from other comprehensive income (loss) into interest expense through the maturity date of the respective swap agreements. The adjustment to fair value of these interest rate swap agreements for the year ended December 31, 2013 was not material to our results of operations. We had no other derivatives not designated as hedging instruments as of December 31, 2013 and 2012. See “—Forward Contracts” for additional information on our purpose for entering into derivatives not designated as hedging instruments and our overall risk management strategies. | ||||||||||||||||||||||||||||||||||||||
Embedded Derivative Related to Senior Secured Notes—On May 9, 2012 Sabre GLBL Inc. issued $400 million in senior secured notes which included a contingent call option to redeem up to 40% of the notes in the event of an equity offering at a rate of 108.50%, until May 15, 2015. This contingent call option is not clearly and closely related to the hybrid indenture and therefore requires separate accounting. We recognized a change in the fair value of the option as a gain of $2 million in other, net in our results of operations for the year ended December 31, 2013. The change in fair value of the option was not material for the year ended December 31, 2012. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||
Fair Value Measurements | 10. Fair Value Measurements | 13. Fair Value Measurements | ||||||||||||||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. Guidance on fair value measurements and disclosures establishes a valuation hierarchy for disclosure of inputs used in measuring fair value defined as follows: | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. Guidance on fair value measurements and disclosures establishes a valuation hierarchy for disclosure of inputs used in measuring fair value defined as follows: | |||||||||||||||||||||||||||||||||
Level 1—Inputs are unadjusted quoted prices that are available in active markets for identical assets or liabilities. | Level 1—Inputs are unadjusted quoted prices that are available in active markets for identical assets or liabilities. | |||||||||||||||||||||||||||||||||
Level 2—Inputs include quoted prices for similar assets and liabilities in active markets and quoted prices in non-active markets, inputs other than quoted prices that are observable, and inputs that are not directly observable, but are corroborated by observable market data. | Level 2—Inputs include quoted prices for similar assets and liabilities in active markets and quoted prices in non-active markets, inputs other than quoted prices that are observable, and inputs that are not directly observable, but are corroborated by observable market data. | |||||||||||||||||||||||||||||||||
Level 3—Inputs that are unobservable and are supported by little or no market activity and reflect the use of significant management judgment. | ||||||||||||||||||||||||||||||||||
Level 3—Inputs that are unobservable and are supported by little or no market activity and reflect the use of significant management judgment. | A financial asset’s or liability’s classification within the hierarchy is determined based on the least reliable level of input that is significant to the fair value measurement. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We also consider the counterparty and our own non-performance risk in our assessment of fair value. | |||||||||||||||||||||||||||||||||
A financial asset’s or liability’s classification within the hierarchy is determined based on the least reliable level of input that is significant to the fair value measurement. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We also consider the counterparty and our own non-performance risk in our assessment of fair value. | Fair values of applicable assets and liabilities are estimated as follows: | |||||||||||||||||||||||||||||||||
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | Foreign Currency Forward Contracts—The fair value of the foreign currency forward contracts were estimated based upon pricing models that use inputs derived from or corroborated by observable market data such as currency spot and forward rates. | |||||||||||||||||||||||||||||||||
Foreign Currency Forward Contracts—The fair value of the foreign currency forward contracts was estimated based upon pricing models that utilize Level 2 inputs derived from or corroborated by observable market data such as currency spot and forward rates. | Interest Rate Swaps—The fair value of our interest rate swaps were estimated using a combined income and market-based valuation methodology based upon credit ratings and forward interest rate yield curves obtained from independent pricing services reflecting broker market quotes. | |||||||||||||||||||||||||||||||||
Interest Rate Swaps—The fair value of our interest rate swaps was estimated using a combined income and market-based valuation methodology based upon Level 2 inputs including credit ratings and forward interest rate yield curves obtained from independent pricing services reflecting broker market quotes. Our outstanding interest rate swaps matured during the third quarter of 2014 and we had no interest rate swaps outstanding as of September 30, 2014. | Contingent Consideration—On August 1, 2012, we acquired all of the outstanding stock and ownership interest of PRISM (see Note 3, Acquisitions). Included in the purchase price is contingent consideration, based on management’s best estimate of fair value and future performance results on the acquisition date and is to be paid in 24 months following the acquisition date. Fair value of this payment was estimated considering the timing of the payments and discounted at 4.75%, representing our short-term borrowing rate based on our revolving credit facility at the time of the acquisition. For the year ended December 31, 2013, we recognized $1 million in expense related to the change in fair value of the contingent consideration. The expense recognized during the year ended December 31, 2012 related to the change in fair value was not material. A 1% increase or decrease in our discount rate will result in a 1.4% change in fair value. | |||||||||||||||||||||||||||||||||
Contingent Consideration—On August 1, 2012, we acquired all of the outstanding stock and ownership interest of PRISM. Included in the purchase price is contingent consideration, based on management’s best estimate of fair value and future performance results on the acquisition date and is to be paid in 24 months following the acquisition date. Fair value of this payment was estimated considering the timing of the payments and discounted at 4.75%, representing our short-term borrowing rate based on our revolving credit facility at the time of the acquisition, a Level 3 input. For the three and nine months ended September 30, 2014 and 2013, the expense recognized related to the change in fair value was not material. In August 2014, we paid the remaining contingent consideration and contingent employment payments associated with our acquisition of PRISM which totaled $30 million. | Embedded Derivative—On May 15, 2012, we acquired a contingent call option to redeem a portion of our senior secured notes in the event of an equity offering (see Note 11, Debt). We modeled the fair value of this call option by evaluating the difference in fair value of the hybrid instrument with and without the call option requiring separate accounting. We calculated the fair value using Level 3 unobservable inputs such as management’s estimate of the probability of an equity offering, credit spreads and the expected future volatility of interest rates based on historical trends. When other inputs are held constant, the higher our expectation of future interest rate volatility, the lower the fair value of the call option. Changes to the unobservable inputs could result in a significantly higher or lower fair value measurement. | |||||||||||||||||||||||||||||||||
Embedded Derivative—As part of the 2019 Notes, we acquired a contingent call option to redeem a portion of the 2019 Notes in the event of an equity offering (see Note 8, Debt). We determined the fair value of this call option by evaluating the difference in fair value of the hybrid instrument with and without the call option requiring separate accounting. We calculated the fair value using Level 3 unobservable inputs such as management’s estimate of the probability of an equity offering, credit spreads and the expected future volatility of interest rates based on historical trends. In May 2014, we exercised our contingent call option and prepaid 40%, or $320 million, of our 2019 Notes. | ||||||||||||||||||||||||||||||||||
As of September 30, 2014, we had $4 million of liabilities associated with foreign currency forward contracts classified as Level 2. We had no other assets or liabilities required to be measured at fair value on a recurring basis as of September 30, 2014. | Assets and Liabilities Measured at Fair Value on a Recurring Basis—The following tables present the fair value of our assets (liabilities) that are required to be measured at fair value on a recurring basis as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
The following table presents the fair value of our assets (liabilities) that are required to be measured at fair value on a recurring basis as of December 31, 2013 (in thousands): | ||||||||||||||||||||||||||||||||||
Fair Value at Reporting Date Using | ||||||||||||||||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
Fair Value at Reporting Date | (Amounts in thousands) | |||||||||||||||||||||||||||||||||
Using | Contingent consideration | $ | (26,303 | ) | $ | — | $ | — | $ | (26,303 | ) | |||||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Derivatives | ||||||||||||||||||||||||||||||
Contingent consideration | $ | (26,303 | ) | $ | — | $ | — | $ | (26,303 | ) | Foreign currency forward contracts (see Note 12) | 5,374 | — | 5,374 | — | |||||||||||||||||||
Derivatives | Interest rate swap contracts (see Note 12) | (11,533 | ) | — | (11,533 | ) | — | |||||||||||||||||||||||||||
Foreign currency forward contracts (see Note 9) | 5,374 | — | 5,374 | — | Contingent call option, 2019 Notes (see Note 11) | 1,657 | — | — | 1,657 | |||||||||||||||||||||||||
Interest rate swap contracts (see Note 9) | (11,533 | ) | — | (11,533 | ) | — | ||||||||||||||||||||||||||||
Contingent call option, 2019 Notes (see Note 8) | 1,657 | — | — | 1,657 | Total derivatives | (4,502 | ) | — | (6,159 | ) | 1,657 | |||||||||||||||||||||||
Total derivatives | (4,502 | ) | — | (6,159 | ) | 1,657 | Total | $ | (30,805 | ) | $ | — | $ | (6,159 | ) | $ | (24,646 | ) | ||||||||||||||||
Total | $ | (30,805 | ) | $ | — | $ | (6,159 | ) | $ | (24,646 | ) | |||||||||||||||||||||||
Fair Value at Reporting Date Using | ||||||||||||||||||||||||||||||||||
Other Financial Instruments | December 31, 2012 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
Notes Payable—The fair values of our 2016 Notes, 2019 Notes and term loans under our Amended and Restated Credit Agreement are determined based on quoted market prices for the identical liability when traded as an asset in an active market, a Level 1 input. The outstanding principal balance of our mortgage facility approximated its fair value as of September 30, 2014 and December 31, 2013. The fair values of the mortgage facility were determined based on estimates of current interest rates for similar debt, a Level 2 input. | (Amounts in thousands) | |||||||||||||||||||||||||||||||||
The following table presents the fair value and carrying value of our 2016 Notes, 2019 Notes and term loans under our Amended and Restated Credit Agreement as of September 30, 2014 and December 31, 2013 (in thousands): | Contingent consideration | $ | (25,193 | ) | $ | — | $ | — | (25,193 | ) | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||
Foreign currency forward contracts (see Note 12) | 2,568 | — | 2,568 | — | ||||||||||||||||||||||||||||||
Fair Value at | Carrying Value at | Interest rate swap contracts (see Note 12) | (25,572 | ) | — | (25,572 | ) | — | ||||||||||||||||||||||||||
Financial Instrument | September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Total derivatives | (23,004 | ) | — | (23,004 | ) | — | ||||||||||||||||||||||||
Term Loan B | $ | 1,722,138 | $ | 1,777,107 | $ | 1,736,119 | $ | 1,747,378 | ||||||||||||||||||||||||||
Incremental term loan facility | 342,602 | 349,334 | 346,500 | 349,125 | Total | $ | (48,197 | ) | $ | — | $ | (23,004 | ) | $ | (25,193 | ) | ||||||||||||||||||
Term Loan C | 49,189 | 363,056 | 49,061 | 360,477 | ||||||||||||||||||||||||||||||
Senior unsecured notes due 2016 | 433,000 | 448,320 | 392,767 | 389,321 | Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis—Fair values of applicable assets and liabilities which are re-measured on a nonrecurring basis are estimated as follows: | |||||||||||||||||||||||||||||
Senior secured notes due 2019 | 520,500 | 886,000 | 480,779 | 799,823 | Goodwill and Intangible Assets—As described in Note 2, Summary of Significant Accounting Policies, our assessment of non-financial assets that are required to be measured at fair value on a non-recurring basis is performed annually, as of October 1, or more frequently if events and circumstances indicate that impairment may have occurred. As of June 2013, we initiated an impairment analysis on the Travelocity North America and Europe reporting units following the allocation of goodwill to TBiz and Holiday Autos. The fair values of these reporting units’ goodwill and intangible assets were estimated using discounted future cash flow projections in 2013, a Level 3 input. Based on the results of the analysis, the goodwill for Travelocity—North America was written down by $96 million and the goodwill for Travelocity—Europe was written down by $40 million. As of June 30, 2013, Travelocity had no goodwill remaining. During the three months ended September 30, 2013, we impaired software developed for internal use for Travelocity—Europe by $2 million. Certain other definite lived intangible assets were impaired by $1 million to a fair value of zero. Our Travelocity—Europe trade name was not impaired as a result of this assessment. Additionally, we measured the goodwill associated with our remaining operating units: Travel Network, Airline Solutions and Hospitality Solutions, as of October 1, 2013 in connection with the annual impairment tests, which did not lead to an impairment charge in 2013. | |||||||||||||||||||||||||||||
In 2012, certain competitors of Travelocity announced plans to move towards offering hotel customers a choice of payment options which could adversely affect margins earned on hotel room sales over time. Travelocity’s move to this new revenue model could additionally impact its working capital as it would collect less cash up front, reducing the size of existing supplier liability over time. We also saw continued weakness in the business performance of Travelocity in the fourth quarter of 2012. We therefore completed multiple impairment analyses of goodwill and long-lived assets in 2012. The fair value of our Travelocity reporting units’ goodwill and long lived assets were estimated using discounted future cash flow projections, a Level 3 input. The goodwill for Travelocity—North America was written down by $58 million to its implied fair value of $105 million, and long-lived assets, including definite lived intangible assets, software developed for internal use, computer equipment and capitalized implementation costs, were written down by $281 million to $87 million. In 2012, the goodwill for Travelocity—Europe was written down by $70 million to its implied fair value of $76 million and long lived assets, including definite lived intangible assets, software developed for internal use and computer equipment, were written down by $154 million to their fair value of $16 million. | ||||||||||||||||||||||||||||||||||
In 2011, goodwill for Travelocity—North America was written down by $173 million to its implied fair value of $163 million based on an analysis performed in June 30, 2011 as a result of triggering events that led to an interim assessment. Additionally, we measured the goodwill associated with Travelocity—North America and Europe as of October 1, 2011 in connection with the annual impairment tests we performed on our goodwill. As a result of the annual testing performed, goodwill for our Travelocity—Europe reporting unit was written down by $12 million to its implied fair value of $151 million. The fair values of the reporting units’ goodwill and long-lived assets were estimated using discounted future cash flow projections in 2011, a Level 3 input. | ||||||||||||||||||||||||||||||||||
Litigation Settlement Payable—On October 30, 2012, we reached a settlement agreement with AMR with respect to breach of contract and antitrust claims brought against us in 2011. We denied AMR’s allegations and aggressively defended against these claims and pursued our own legal rights as warranted. The settlement liability is considered a multiple-element arrangement and the components included in the settlement have been recorded at fair value. The net charge recorded in 2012 consists of several elements, including cash and future cash to be paid directly to AMR, payment credits to pay for future technology services that we provide (as defined in the agreements), and an estimate of the fair value of other agreements entered into concurrently with the settlement agreement, Level 3 inputs. See Note 20, Commitments and Contingencies—Legal Proceedings for additional information on the litigation charges. As of December 31, 2013 and 2012 the remaining obligations were $39 million and $118 million, in litigation settlement liability and related deferred revenue and $98 million and $127 million in other noncurrent liabilities, respectively, on our consolidated balance sheets. | ||||||||||||||||||||||||||||||||||
Notes Payable—The fair value of our 2016 Notes, 2019 Notes and term loan are determined based on quoted market prices for the identical liability when traded as an asset in an active market, a Level 1 input. The outstanding principal balance of our mortgage facility approximated its fair value as of December 31, 2013 and 2012. The fair values of the mortgage facility were determined based on estimates of current interest rates for similar debt, a Level 2 input. | ||||||||||||||||||||||||||||||||||
The following table presents the fair value and carrying value of our 2016 Notes, 2019 Notes and term loans as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||
Financial Instrument | Fair Value at | Carrying Value at | ||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2013 | |||||||||||||||||||||||||||||||||
$400 million 2016 notes | $ 448 million | $ 389 million | ||||||||||||||||||||||||||||||||
$800 million 2019 notes | $ 886 million | $ 800 million | ||||||||||||||||||||||||||||||||
$1,775 million Term Loan B | $1,777 million | $1,747 million | ||||||||||||||||||||||||||||||||
$350 million Incremental Term Facility | $ 349 million | $ 349 million | ||||||||||||||||||||||||||||||||
$425 million Term Loan C | $ 363 million | $ 360 million | ||||||||||||||||||||||||||||||||
Financial Instrument | Fair Value at | Carrying Value at | ||||||||||||||||||||||||||||||||
December 31, 2012 | December 31, 2012 | |||||||||||||||||||||||||||||||||
$400 million 2016 notes | $ 429 million | $ 385 million | ||||||||||||||||||||||||||||||||
$800 million 2019 notes | $ 854 million | $ 802 million | ||||||||||||||||||||||||||||||||
$1,802 million Term Loan B | $1,812 million | $1,802 million | ||||||||||||||||||||||||||||||||
$375 million incremental term loan | $ 380 million | $ 371 million |
Comprehensive_Income_Loss
Comprehensive Income (Loss) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||
Comprehensive Income (Loss) | 11. Comprehensive Income (Loss) | 14. Comprehensive Income (Loss) | ||||||||||||||||||||
At September 30, 2014 and December 31, 2013, the components of accumulated other comprehensive income (loss), net of related deferred income taxes were as follows (in thousands): | At December 31, 2013 and 2012, the components of accumulated other comprehensive income (loss), net of related deferred income taxes were as follows: | |||||||||||||||||||||
September 30, 2014 | December 31, 2013 | December 31, | ||||||||||||||||||||
Retirement-related benefit plans | $ | (62,156 | ) | $ | (63,762 | ) | 2013 | 2012 | ||||||||||||||
Unrealized loss on foreign currency forward contracts and interest rate swaps | (3,118 | ) | (2,684 | ) | (Amounts in thousands) | |||||||||||||||||
Unrealized foreign currency translation gain | 18,761 | 15,050 | Defined benefit pension & other post retirement benefit plans | $ | (63,762 | ) | $ | (86,158 | ) | |||||||||||||
Other (1) | 4,921 | 1,501 | Unrealized loss on foreign currency forward contracts and interest rate swaps | (2,684 | ) | (14,222 | ) | |||||||||||||||
Unrealized foreign currency translation gain | 15,050 | 1,934 | ||||||||||||||||||||
Total accumulated other comprehensive loss, net of tax | $ | (41,592 | ) | $ | (49,895 | ) | Other(1) | 1,501 | 2,916 | |||||||||||||
Total accumulated other comprehensive loss, net of tax | $ | (49,895 | ) | $ | (95,530 | ) | ||||||||||||||||
-1 | Primarily relates to our share of Abacus’ accumulated other comprehensive income. See Note 5, Equity Method Investments. | |||||||||||||||||||||
In the nine months ended September 30, 2013, we reclassified $8 million, net of tax, of foreign currency translation losses from accumulated other comprehensive income into loss from discontinued operations as a result of the disposition of Zuji (see Note 3, Discontinued Operations and Dispositions). The amortization of actuarial losses and periodic service credits associated with our retirement-related benefit plans are included in selling, general and administrative expenses. See Note 9, Derivatives, for information on the income statement line items affected as the result of reclassification adjustments associated with derivatives. | -1 | Primarily relates to our share of Abacus’ accumulated other comprehensive income. See Note 6, Equity Method Investments. | ||||||||||||||||||||
The change in defined benefit pension and other postretirement benefit plans is net of deferred tax effects of approximately $12 million, $19 million, and $16 million for the years ended December 31, 2013, 2012, and 2011 respectively. | ||||||||||||||||||||||
The change in unrealized gain (loss) on foreign currency forward contracts and interest rate swaps is net of deferred tax effects of approximately $6 million, $9 million and $1 million for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||||||||||
The change in unrealized foreign currency translation gain (loss) is net of deferred tax effects of approximately $3 million for the year ended December 31, 2013 and $1 million for each of the years ended December 31, 2012 and 2011. | ||||||||||||||||||||||
The tax effects allocated to the other components of accumulated other comprehensive income during the years ended December 31, 2013, 2012, and 2011 were not material. | ||||||||||||||||||||||
Reclassification adjustments, net of tax, for (gains) losses included in net income were as follows: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||
Foreign currency translation(1) | $ | 8,162 | $ | 888 | $ | — | ||||||||||||||||
Foreign exchange contracts | (915 | ) | 2,890 | (8,508 | ) | |||||||||||||||||
Interest rate swaps | 9,453 | 15,906 | 29,250 | |||||||||||||||||||
Prior service costs and actuarial gains | (5,409 | ) | (6,716 | ) | (7,285 | ) | ||||||||||||||||
Total | $ | 11,291 | $ | 12,968 | $ | 13,457 | ||||||||||||||||
-1 | Relates to the dispositions of Zuji in 2013 and TravelGuru and Sabre Pacific in 2012. See Note 4, Discontinued Operations and Dispositions. |
Redeemable_Preferred_Stock
Redeemable Preferred Stock | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | ||
Redeemable Preferred Stock | 12. Redeemable Preferred Stock | 15. Redeemable Preferred Stock |
Prior to the closing of our initial public offering, we amended our Certificate of Incorporation and exercised our right to redeem all of our Series A Cumulative Preferred Stock. The amendment to our Certificate of Incorporation modified the redemption feature of the Series A Cumulative Preferred Stock to allow for settlement using cash, shares of our common stock or a mix of cash and shares of our common stock. On April 23, 2014, we redeemed all of our outstanding shares of Series A Cumulative Preferred Stock in exchange for 40,343,529 shares of our common stock, which were delivered pro rata to the holders thereof concurrently with the closing of our initial public offering. | Our authorized preferred stock consists of 225 million shares with a par value of $0.01 per share of which 87.5 million shares of preferred stock have been designated as Series A Preferred Stock with a stated value of $5.7468681218772 per share. As of December 31, 2013, and 2012, there were 87,229,703 preferred shares issued and 87,184,178 preferred shares outstanding, all of which were Series A Preferred Stock. | |
Voting | ||
Holders of the Series A Preferred Stock have no voting rights except with respect to the creation of any class or series of capital stock having any preference or priority over Series A Preferred Stock or the amendment or repeal of any provision of the constituent documents of the Company that adversely changes the powers, preferences or special rights of the Series A Preferred Stock. | ||
Dividends | ||
Each share of Series A Preferred Stock accumulates dividends at an annual rate of 6%. Accumulated but unpaid dividends totaled $134 million and $97 million at December 31, 2013 and 2012, respectively. The Series A Preferred Shares were recorded at fair value at the date of issuance and have been adjusted each period to the current redemption value which includes accumulated but unpaid dividends. On December 31, 2009, we declared and paid a $90 million in-kind dividend through the conversion of our wholly-owned subsidiary Travelocity.com Inc. into Travelocity.com LLC (see Note 2, Summary of Significant Accounting Policies). No cash dividends have been paid since the inception of the Series A Preferred Shares. | ||
Liquidation | ||
The holders of the Series A Preferred Stock have the right to require us to repurchase their shares in the form of cash in the amount of the stated value per share plus accrued and unpaid dividends upon the occurrence of a liquidation event as described in the Certificate of Correction of the Second Amended and Restated Certificate of Incorporation of Sabre Corporation (“Liquidation Events”). Liquidation Events are: (a) a consolidation or merger in which the Company is not the surviving entity to the extent that holders of common stock of the Company receive cash, indebtedness, or preferred stock of the surviving entity and holders of Series A Preferred Stock do not receive preferred stock of the surviving entity with rights, powers, and preferences equal to or more favorable than those of the Series A Preferred Stock; (b) a disposition of all or substantially all of the assets of the Company; (c) any person or group of persons acquiring beneficial ownership of more than 50% of the total voting power or equity interest in the Company; (d) the first underwritten public offering and sale of the equity securities of the Company for cash; or (e) the 30th anniversary of the date of issuance of the Series A Preferred Stock. At the time of repurchase, the Series A Preferred Stock must be presented in units, each of which is to consist of two restricted shares of currently outstanding common stock and five shares of Series A Preferred Stock. For each unit presented for repurchase, the holders will receive back two unrestricted shares of common stock in addition to the cash in the amount of the stated value per share of Series A Preferred Stock plus accrued and unpaid dividends. | ||
Redemption | ||
The Series A Preferred Stock are redeemable for cash in the amount of the stated value per share plus accrued and unpaid dividends. At our option, we may redeem all or part of the Series A Preferred Stock at any time. The majority holders of the Series A Preferred Stock are TPG and Silver Lake which have the right to elect the board of directors in their capacity as owners. Therefore, the Series A Preferred Shares are also redeemable at the option of the holders of the Preferred Stock. As such, the Series A Preferred Stock is presented outside of permanent equity as temporary equity in our consolidated balance sheet. At the time of redemption, the Series A Preferred Stock must be presented in units, each of which is to consist of two restricted shares of currently outstanding common stock and five shares of Series A Preferred Stock. For each unit presented for redemption, the holders will receive back two unrestricted shares of common stock in addition to the cash in the amount of the stated value per share of Series A Preferred Stock plus accrued and unpaid dividends. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||
Earnings Per Share | 13. Earnings Per Share | 18. Earnings Per Share | ||||||||||||||||||||||||||||
The following table reconciles the numerators and denominators used in the computations of basic and diluted earnings per share (in thousands, expect per share data): | The following table reconciles the numerators and denominators used in the computations of basic and diluted earnings per share: | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | ||||||||||||||||||||||||||||
September 30, | September 30, | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | (Amounts in thousands, except per share data) | ||||||||||||||||||||||||||
Numerator: | Net loss from continuing operations | $ | (90,455 | ) | $ | (621,726 | ) | $ | (79,294 | ) | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 39,019 | $ | 3,071 | $ | 33,008 | $ | (104,224 | ) | Net income (loss) attributable to noncontrolling interests | 2,863 | (59,317 | ) | (36,681 | ) | |||||||||||||||
Net income attributable to noncontrolling interests | 720 | 714 | 2,168 | 2,135 | Preferred stock dividends | 36,704 | 34,583 | 32,579 | ||||||||||||||||||||||
Preferred stock dividends | — | 9,242 | 11,381 | 27,219 | ||||||||||||||||||||||||||
Net loss from continuing operations available to common shareholders | $ | (130,022 | ) | $ | (596,992 | ) | $ | (75,192 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations available to common shareholders, basic and diluted | $ | 38,299 | $ | (6,885 | ) | $ | 19,459 | $ | (133,578 | ) | ||||||||||||||||||||
Basic and diluted weighted-average number of shares outstanding | 178,125 | 177,206 | 176,703 | |||||||||||||||||||||||||||
Denominator: | Basic and diluted loss per share available to common shareholders | $ | (0.73 | ) | $ | (3.37 | ) | $ | (0.43 | ) | ||||||||||||||||||||
Basic weighted-average common shares outstanding | 264,768 | 178,140 | 229,405 | 178,051 | Basic earnings per share are based on the weighted average number of common shares outstanding during each period. Diluted earnings per share are based on the weighted average number of common shares outstanding and the effect of all dilutive common stock equivalents during each period. For the years ended December 31, 2013, 2012 and 2011, we had 22 million, 20 million and 21 million common stock equivalents, respectively, primarily associated with our stock-options. As we recorded net losses for each period presented, all common stock equivalents were excluded from the calculation of diluted earnings per share as its inclusion would have been antidilutive. As a result, basic and diluted earnings per share are equal for each period. | |||||||||||||||||||||||||
Dilutive effect of stock awards | 8,562 | — | 8,589 | — | Tandem SARs issued with respect to the Travelocity Equity 2012 plan may be settled in shares of the underlying stock and units, interests in Sabre Corporation or any successor to Sabre Corporation, THI or Travelocity.com LLC, or in cash. If we elect to settle in shares of Sabre Corporation, the quantity issued is based on the intrinsic value of the Tandem SARs at the time of settlement and the fair value of Sabre Corporation shares at the time of settlement. For the years ended December 31, 2013, 2012 and 2011, no shares were issuable under this calculation and therefore there were no common stock equivalents associated with the Tandem SARs. | |||||||||||||||||||||||||
Diluted weighted-average common shares outstanding | 273,330 | 178,140 | 237,994 | 178,051 | ||||||||||||||||||||||||||
Basic earnings per share | $ | 0.14 | $ | (0.04 | ) | $ | 0.08 | $ | (0.75 | ) | ||||||||||||||||||||
Diluted earnings per share | $ | 0.14 | $ | (0.04 | ) | $ | 0.08 | $ | (0.75 | ) | ||||||||||||||||||||
Basic earnings per share are based on the weighted-average number of common shares outstanding during each period. Diluted earnings per share are based on the weighted-average number of common shares outstanding plus the effect of all dilutive common stock equivalents during each period. The calculation of diluted weighted-average shares excludes the impact of 2 million and 21 million common stock equivalents for the three months ended September 30, 2014 and 2013, respectively, and 1 million and 21 million common stock equivalents for the nine months ended September 30, 2014 and 2013, respectively. As we recorded net losses from continuing operations available to common shareholders in the three and nine months ended September 30, 2013, all common stock equivalents were excluded from the calculation of diluted earnings per share as its inclusion would have been antidilutive. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||
Commitments and Contingencies | 14. Contingencies | 20. Commitments and Contingencies | ||||||||||||||||||||||||||||
Value Added Tax Receivables | Future Minimum Payments under Contractual Obligations | |||||||||||||||||||||||||||||
We generate Value Added Tax (“VAT”) refund claims, recorded as receivables, in multiple jurisdictions through the normal course of our business. Audits related to these claims are in various stages of investigation. If the results of the audit or litigation were to become unfavorable, the uncollectible amounts could be material to our results of operations. In previous years, the right to recover certain VAT receivables associated with European businesses has been questioned by tax authorities. We believe that our claims are valid under applicable law and as such we will continue to pursue collection, possibly through litigation. We assess VAT receivables for collectability and may be required to record reserves in the future. Our VAT receivables totaled $24 million and $23 million as of September 30, 2014 and December 31, 2013, respectively, and are included in other receivables in our consolidated balance sheets. | At December 31, 2013, future minimum payments required under the Amended and Restated Credit Agreement, 2016 Notes and 2019 Notes, the mortgage facility, operating lease agreements with terms in excess of one year for facilities, equipment and software licenses and other significant contractual cash obligations were as follows: | |||||||||||||||||||||||||||||
Litigation and Risks Relating to Value Added Taxes | ||||||||||||||||||||||||||||||
Holiday Autos, a discontinued operation (see Note 3, Discontinued Operations and Dispositions), conducted a cross border car rental brokering business that involved substantial sums of VAT receivables and payable from the period 2007 to 2009. Certain of the VAT receivables were challenged by tax authorities and successfully defended. In France, however, the Court of Appeal ruled against us on June 18, 2013 in respect of outstanding VAT refund claims of $4 million made for the periods 2007 through 2009. We believe our claims are valid and have appealed the decision to the Supreme Court in France. Due to litigation, significant delays and other factors impacting our settlement of these claims, we have recorded an allowance for losses relating to such events in assets of discontinued operations in our consolidated balance sheets. The allowances recorded as of September 30, 2014 and December 31, 2013, in respect of the French claims subject to litigation, were $4 million. Our VAT receivables, net of reserves, associated with Holiday Autos totaled $5 million and $6 million as of September 30, 2014 and December 31, 2013, respectively, and are included in assets of discontinued operations in our consolidated balance sheets. | ||||||||||||||||||||||||||||||
As we dissolve subsidiaries associated with discontinued operations, tax authorities may or have initiated audits that could result in challenges to our refund claims and assessments of additional taxes. We believe the merits of our claims are valid and will aggressively defend any denial of our claims. | Payments Due by Period | |||||||||||||||||||||||||||||
In the United Kingdom, the Commissioners for Her Majesty’s Revenue & Customs (“HMRC”) had asserted that our subsidiary, Secret Hotels2 Limited (formerly Med Hotels Limited), failed to account for United Kingdom VAT on margins relating to hotels located within the European Union (“EU”). This business was sold in February 2009 to a third-party and we account for it as a discontinued operation. Because the sale was structured as an asset sale, we retained the potential tax liabilities of Secret Hotels2 Limited. HMRC issued assessments of tax totaling approximately $11 million. We appealed the assessments and as a result of an unfavorable ruling against us in the penultimate appeal court, we accrued $17 million of expense included in discontinued operations in the fourth quarter of 2012. On March 5, 2014 judgment was given in favor of Secret Hotels2 Limited. This judgment cannot be further appealed. We therefore reversed our reserve in 2013 in discontinued operations. | Contractual Obligations | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
HMRC had started a review of other parts of our lastminute.com business in the United Kingdom. Following the favorable judgment in March 2014 associated with Secret Hotels2 Limited, HMRC ceased its review activity and withdrew its VAT claims against lastminute.com. | (Amounts in thousands) | |||||||||||||||||||||||||||||
Legal Proceedings | Total debt(1) | $ | 320,662 | $ | 315,929 | $ | 726,845 | $ | 360,459 | $ | 244,391 | $ | 2,855,934 | $ | 4,824,220 | |||||||||||||||
While certain legal proceedings and related indemnification obligations to which we are a party specify the amounts claimed, these claims may not represent reasonably possible losses. Given the inherent uncertainties of litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated, except in circumstances where an aggregate litigation accrual has been recorded for probable and reasonably estimable loss contingencies. A determination of the amount of accrual required, if any, for these contingencies is made after careful analysis of each matter. The required accrual may change in the future due to new information or developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. | Headquarters mortgage(2) | 5,984 | 5,984 | 5,984 | 80,895 | — | — | 98,847 | ||||||||||||||||||||||
Litigation and Administrative Audit Proceedings Relating to Hotel Occupancy Taxes | Operating lease obligations(3) | 31,450 | 27,217 | 23,363 | 15,435 | 9,668 | 25,789 | 132,922 | ||||||||||||||||||||||
Over the past ten years, various state and local governments in the United States have filed approximately 70 lawsuits against us and other OTAs pertaining primarily to whether Travelocity and other OTAs owe sales or occupancy taxes on some or all of the revenues they earn from facilitating hotel reservations using the merchant revenue model. In the merchant revenue model, the customer pays us an amount at the time of booking that includes (i) service fees, which we collect, and (ii) the price of the hotel room and amounts for occupancy or other local taxes, which we pass along to the hotel supplier. The complaints generally allege, among other things, that the defendants failed to pay to the relevant taxing authority hotel accommodations taxes on the service fees. Courts have dismissed approximately 30 of these lawsuits, some for failure to exhaust administrative remedies and some on the basis that we are not subject to the sales or occupancy tax at issue based on the construction of the language in the ordinance. The Fourth, Sixth and Eleventh Circuits of the United States Courts of Appeals each have ruled in our favor on the merits, as have state appellate courts in Missouri, Alabama, Texas, California, Kentucky, Florida, Colorado and Pennsylvania, and a number of state and federal trial courts. The remaining lawsuits are in various stages of litigation. We have also settled some cases individually, most for nuisance value, and with respect to these settlements, have generally reserved our rights to challenge any effort by the applicable tax authority to impose occupancy taxes in the future. | IT outsourcing agreement(4) | 165,983 | 156,492 | 135,307 | 99,305 | — | — | 557,087 | ||||||||||||||||||||||
We have received recent favorable decisions pertaining to cases in North Carolina, California, Montana, Arizona and Colorado. On August 19, 2014, the North Carolina Court of Appeals affirmed a judgment in favor of Travelocity and other OTAs after concluding they are not operators of hotels, motel or similar-type businesses and therefore are not subject to hotel occupancy tax. The plaintiffs have filed a petition for discretionary review with the North Carolina Supreme Court. On May 28, 2014, an administrative hearing officer in Arizona ruled that Travelocity is not responsible for collecting or remitting local hotel taxes and set aside assessments made by twelve municipalities in Arizona, including Phoenix, Scottsdale, Tempe, and Tucson. On March 27, 2014, a California court of appeals upheld a trial court ruling that OTAs, including Travelocity, are not subject to the City of San Diego’s transient occupancy tax because they are not hotel operators or managing agents. The City of San Diego has filed a petition asking the Supreme Court of California to review the case. This marked the third time that a California appellate court has ruled in favor of Travelocity on the question of whether OTAs are subject to transient occupancy taxes in California, the prior two cases being brought by the City of Anaheim and City of Santa Monica. Travelocity also has prevailed at the trial court level in cases brought by San Francisco and Los Angeles, both of which are being appealed by the cities. On March 6, 2014, a Montana trial court ruled by summary judgment that Travelocity and other OTAs are not subject to the State of Montana’s lodging facility use tax or its sales tax on accommodations and vehicles. The lawsuit had been brought by the Montana Department of Revenue, which has appealed the decision. On July 3, 2014, the Colorado Court of Appeals affirmed a final judgment that Travelocity and OTAs are not liable for lodging taxes as claimed by the City of Denver. The City of Denver has petitioned the Supreme Court of Colorado to review the decision. | Purchase orders(5) | 137,456 | 2,146 | 1,565 | — | — | — | 141,167 | ||||||||||||||||||||||
Although we have prevailed in the majority of these lawsuits and proceedings, there have been several adverse judgments or decisions on the merits, some of which are subject to appeal. On April 3, 2014, the Supreme Court of Wyoming affirmed a decision by the Wyoming State Board of Equalization that Travelocity and other OTAs are subject to sales tax on lodging. Similarly, on March 4, 2014, a trial court in Washington D.C. entered final judgment in favor of the District of Columbia on its claim that Travelocity and other OTAs are subject to the District’s hotel occupancy tax. Travelocity has appealed the trial court’s decision. We did not record material charges associated with these cases during the three and nine months ended September 30, 2014 and 2013. As of September 30, 2014, our reserve for these cases totaled $6 million and is included in other accrued liabilities in our consolidated balance sheets. | Letters of credit(6) | 65,238 | 128 | 1,621 | — | — | 151 | 67,138 | ||||||||||||||||||||||
WNS agreement(7) | 23,777 | 24,910 | — | — | — | — | 48,687 | |||||||||||||||||||||||
On November 21, 2013, the New York State Court of Appeals ruled against Travelocity and other OTAs, holding that New York City’s hotel occupancy tax, which was amended in 2009 to capture revenue from fees charged to customers by third-party travel companies, is constitutional because such fees constitute rent as they are a condition of occupancy. Travelocity had been collecting and remitting taxes under the statute, so the ruling did not impact its financial results in that regard. | Other purchase obligations(8) | 39,175 | — | — | — | — | — | 39,175 | ||||||||||||||||||||||
On June 21, 2013, a state trial court in Cook County, Illinois granted summary judgment in favor of the City of Chicago and against Travelocity and other OTAs, ruling that Chicago’s hotel tax applies to the fees retained by the OTAs because, according to the trial court, OTAs act as hotel “managers” when facilitating hotel reservations. Travelocity subsequently settled the lawsuit prior to the entry of final judgment or any ruling on damages for an amount not material to our results of operations. | Unrecognized tax benefits(9) | — | — | — | — | — | — | 66,620 | ||||||||||||||||||||||
On April 4, 2013, the United States District Court for the Western District of Texas (“W.D.T.”) entered a final judgment against Travelocity and other OTAs in a class action lawsuit filed by the City of San Antonio. The final judgment was based on a jury verdict from October 30, 2009 that the OTAs “control” hotels for purposes of city hotel occupancy taxes. Following that jury verdict, on July 1, 2011, the W.D.T. concluded that fees charged by the OTAs are subject to city hotel occupancy taxes and that the OTAs have a duty to assess, collect and remit these taxes. We disagree with the jury’s finding that we “control” hotels, and with the W.D.T.’s conclusions based on the jury finding, and intend to appeal the final judgment to the United States Court of Appeals for the Fifth Circuit. The verdict against us, including penalties and interest, is $4 million which we do not believe we will ultimately pay and therefore have not accrued any loss related to this case. | ||||||||||||||||||||||||||||||
We believe the Fifth Circuit’s resolution of the San Antonio appeal may be affected by a separate Texas state appellate court decision in our favor. On October 26, 2011, the Fourteenth Court of Appeals of Texas affirmed a trial court’s summary judgment ruling in favor of the OTAs in a case brought by the City of Houston and the Harris County-Houston Sports Authority on a similarly worded tax ordinance as the one at issue in the San Antonio case. The Texas Supreme Court denied the City of Houston’s petition to review the case. We believe this decision should provide persuasive authority to the Fifth Circuit in its review of the San Antonio case. | Total contractual cash obligations(10) | $ | 789,725 | $ | 532,806 | $ | 894,685 | $ | 556,094 | $ | 254,059 | $ | 2,881,874 | $ | 5,975,863 | |||||||||||||||
In late 2012, the Tax Appeal Court of the State of Hawaii granted summary judgment in favor of Travelocity and other OTAs on the issue of whether Hawaii’s transient accommodation tax applies to the merchant revenue model. However, in January 2013, the same court granted summary judgment in favor of the State of Hawaii and against Travelocity and other OTAs on the issue of whether the state’s general excise tax, which is assessed on all business activity in the state, applies to the merchant revenue model for the period from 2002 to 2011. | ||||||||||||||||||||||||||||||
We recorded charges of $1 million and $17 million in cost of revenue for the nine months ended September 30, 2014 and 2013, respectively, which represents the amount we would owe to the State of Hawaii, prior to appealing the Tax Appeal Court’s ruling, in back excise taxes, penalties and interest based on the court’s interpretation of the statute. As of September 30, 2014, we maintained an accrued liability of $9 million for this case and have not made material payments in the nine months ended September 30, 2014. Payment of such amount is not an admission that we believe we are subject to the taxes in question. | ||||||||||||||||||||||||||||||
The State of Hawaii has appealed the Tax Appeal Court’s decision that Travelocity is not subject to transient accommodation tax, and Travelocity has likewise appealed the Tax Appeal Court’s determination that we are subject to general excise tax, as we believe the decision is incorrect and inconsistent with the same court’s prior rulings. If any excise tax is in fact owed (which we dispute), we believe the correct amount should be under $10 million. The ultimate resolution of these contingencies may differ from the liabilities recorded. To the extent our appeal is successful in reducing or eliminating the assessed excise tax amounts, the State of Hawaii would be required to refund such amounts, plus interest. On May 20, 2013, the State of Hawaii issued additional assessments of general excise tax and hotel occupancy tax for the calendar year 2012. Travelocity has appealed these assessments to the Tax Appeal Court, and these assessments have been stayed pending a final appellate decision on the original assessments. | -1 | Includes all interest and principal related to the 2016 Notes and 2019 Notes. Also includes all interest and principal related to borrowings under the Amended and Restated Credit Agreement, which will mature in 2017 and 2019 and the Incremental Term Facility, which will mature in 2017. We are required to pay a percentage of the excess cash flow generated each year to our lenders which is not reflected in the table above. Interest on the term loan is based on the LIBOR rate plus a base margin and includes the effect of interest rate swaps. For purposes of this table, we have used projected LIBOR rates for all future periods (see Note 11, Debt). | ||||||||||||||||||||||||||||
On December 9, 2013, the State of Hawaii also issued assessments of general excise tax for merchant rental car bookings facilitated by Travelocity and other OTAs for the period 2001 to 2012 for which we recorded a $2 million reserve in the fourth quarter of 2013. Travelocity has appealed the assessment to the Tax Appeal Court, which ordered a stay of the assessment pending a final appellate decision on the original assessments. | -2 | Includes all interest and principal related to $85 million mortgage facility, which matures on March 1, 2017 (see Note 11, Debt). | ||||||||||||||||||||||||||||
On July 18, 2014, the State of Hawaii also issued additional assessments of general excise tax and hotel occupancy tax for the calendar year 2013. Travelocity has appealed those assessments to the Tax Appeal Court and intends to request a stay of the assessments pending a final appellate decision on the original assessments. | -3 | We lease approximately two million square feet of office space in 97 locations in 48 countries. Lease payment escalations are based on fixed annual increases, local consumer price index changes or market rental reviews. We have renewal options of various term lengths at 65 locations, and we have no purchase options and no restrictions imposed by our leases concerning dividends or additional debt. | ||||||||||||||||||||||||||||
As of September 30, 2014, we have a reserve of $20 million, included in other accrued liabilities in the consolidated balance sheet, for the potential resolution of issues identified related to litigation involving hotel sales, occupancy or excise taxes, which includes the $11 million liability for the remaining payments to the State of Hawaii. As of December 31, 2013, the reserve for litigation involving hotel sales, occupancy or excise taxes was $18 million. Our estimated liability is based on our current best estimate but the ultimate resolution of these issues may be greater or less than the amount recorded and, if greater, could adversely affect our results of operations. | -4 | Represents minimum amounts due to Hewlett-Packard under the terms of an outsourcing agreement through which HP manages a significant portion of our information technology systems. | ||||||||||||||||||||||||||||
In addition to the actions by the tax authorities, four consumer class action lawsuits have been filed against us in which the plaintiffs allege that we made misrepresentations concerning the description of the fees received in relation to facilitating hotel reservations. Generally, the consumer claims relate to whether Travelocity provided adequate notice to consumers regarding the nature of our fees and the amount of taxes charged or collected. One of these lawsuits was dismissed by the trial court and this dismissal was subsequently affirmed by the Texas Supreme Court; one was voluntarily dismissed by the plaintiffs; one is pending in Texas state court, where the court is currently considering the plaintiffs’ motion to certify a class action; and the last is pending in federal court, but has been stayed pending the outcome of the Texas state court action. We believe the notice we provided was appropriate. | -5 | Purchase obligations represent an estimate of all open purchase orders and contractual obligations in the ordinary course of business for which we have not received the goods or services as of December 31, 2013. Although open purchase orders are considered enforceable and legally binding, the terms generally allow us the option to cancel, reschedule and adjust our requirements based on our business needs prior to the delivery of goods or performance of services. | ||||||||||||||||||||||||||||
In addition to the lawsuits, a number of state and local governments have initiated inquiries, audits and other administrative proceedings that could result in an assessment of sales or occupancy taxes on fees. If we do not prevail at the administrative level, those cases could lead to formal litigation proceedings. | -6 | Our letters of credit consist of stand-by letters of credit, underwritten by a group of lenders, which we primarily issue for certain regulatory purposes as well as to certain hotel properties to secure our payment for hotel room transactions. The contractual expiration dates of these letters of credit are shown in the table above. There were no claims made against any stand-by letters of credit during the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||||||
Pursuant to our Expedia SMA, we continue to be liable for fees, charges, costs and settlements relating to litigation arising from hotels booked on the Travelocity platform operated by Travelocity prior to the full implementation of the Expedia SMA. However, fees, charges, costs and settlements relating to litigation from hotels booked subsequent to the Expedia SMA will be shared with Expedia according to the terms of the Expedia SMA. Under the Expedia SMA, we are also required to guarantee Travelocity’s indemnification obligations to Expedia for any liabilities arising out of historical claims with respect to this type of litigation. | -7 | Represents expected payments to WNS Global Services, an entity to which we outsource a portion of our Travelocity contact center operations and back-office fulfillment though 2015. The expected payments are based upon current and historical transactions. | ||||||||||||||||||||||||||||
US Airways Antitrust Litigation and DOJ Investigation | -8 | Consists primarily of minimum payments due under various marketing agreements, management services monitoring fees and media strategy, planning and placement agreements. | ||||||||||||||||||||||||||||
US Airways Antitrust Litigation | -9 | [Unrecognized tax benefits include associated interest and penalties. The timing of related cash payments for substantially all of these liabilities is inherently uncertain because the ultimate amount and timing of such liabilities is affected by factors which are variable and outside our control.] | ||||||||||||||||||||||||||||
In April 2011, US Airways sued us in federal court in the Southern District of New York, alleging violations of the Sherman Act Section 1 (anticompetitive agreements) and Section 2 (monopolization). The complaint was filed two months after we entered into a new distribution agreement with US Airways. In September 2011, the court dismissed all claims relating to Section 2. The claims that were not dismissed are claims brought under Section 1 of the Sherman Act that relate to our contracts with airlines, especially US Airways itself, which US Airways says contain anticompetitive content-related provisions, and an alleged conspiracy with the other GDSs, allegedly to maintain the industry structure and not to implement US Airways’ preferred system of distributing its Choice Seats product. We strongly deny all of the allegations made by US Airways. US Airways quantifies its damages at either $317 million or $482 million (before trebling), depending on certain assumptions. We believe both estimates are based on faulty assumptions and analysis and therefore are highly overstated. In the event US Airways were to prevail on the merits of its claim, we believe any monetary damages awarded (before trebling) would be significantly less than either of US Airways’ proposed damage amounts. | -10 | Excludes pension obligations; see Note 9, Pension and Other Postretirement Benefit Plans. | ||||||||||||||||||||||||||||
Document, fact and expert witness discovery are complete. Summary judgment motions were filed in April 2014 and we are awaiting a ruling. No trial date has been set and we anticipate the most likely trial date would be in the first half of 2015, assuming no delays with the court’s schedule and that we do not prevail completely with our summary judgment motions. | The following table presents rent expense for continuing operations for each of the three years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||||||
We have and will incur significant fees, costs and expenses for as long as the litigation is ongoing. In addition, litigation by its nature is highly uncertain and fraught with risk, and it is therefore difficult to predict the outcome of any particular matter. If favorable resolution of the matter is not reached, any monetary damages are subject to trebling under the antitrust laws and US Airways would be eligible to be reimbursed by us for its costs and attorneys’ fees. Depending on the amount of any such judgment, if we do not have sufficient cash on hand, we may be required to seek financing through the issuance of additional equity or from private or public financing. Additionally, US Airways can and has sought injunctive relief, though we believe injunctive relief for US Airways is precluded by the settlement agreement we reached with American Airlines in 2012, which covers affiliates, including through merger, of American Airlines. If injunctive relief were granted, depending on its scope, it could affect the manner in which our airline distribution business is operated and potentially force changes to the existing airline distribution business model. Any of these consequences could have a material adverse effect on our business, financial condition and results of operations. | ||||||||||||||||||||||||||||||
Department of Justice Investigation | ||||||||||||||||||||||||||||||
On May 19, 2011, we received a civil investigative demand (“CID”) from the U.S. Department of Justice (“DOJ”) investigating alleged anticompetitive acts related to the airline distribution component of our business. We are fully cooperating with the DOJ investigation and are unable to make any prediction regarding its outcome. The DOJ is also investigating other companies that own GDSs, and has sent CIDs to other companies in the travel industry. Based on its findings in the investigation, the DOJ may (i) close the file, (ii) seek a consent decree to remedy issues it believes violate the antitrust laws, or (iii) file suit against us for violating the antitrust laws, seeking injunctive relief. If injunctive relief were granted, depending on its scope, it could affect the manner in which our airline distribution business is operated and potentially force changes to the existing airline distribution business model. Any of these consequences would have a material adverse effect on our business, financial condition and results of operations. | Year Ended December 31, | |||||||||||||||||||||||||||||
Insurance Carriers | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
We have disputes against two of our insurance carriers for failing to reimburse defense costs incurred in the American Airlines antitrust litigation, which we settled in October 2012. Both carriers admitted there is coverage, but reserved their rights not to pay should we be found liable for certain of American Airlines’ allegations. Despite their admission of coverage, the insurers have only reimbursed us for a small portion of our significant defense costs. We filed suit against the entities in New York state court alleging breach of contract and a statutory cause of action for failure to promptly pay claims. If we prevail, we may recover some or all amounts already tendered to the insurance companies for payment within the limits of the policies and may be entitled to 18% interest on such amounts. To date, settlement discussions have been unsuccessful. We are currently in the discovery process. The court has not yet scheduled a trial date though we anticipate trial to begin in the second half of 2015. | (Amounts in thousands) | |||||||||||||||||||||||||||||
Rent expense | $ | 40,474 | $ | 36,385 | $ | 39,846 | ||||||||||||||||||||||||
Hotel Related Antitrust Proceedings | Less: | |||||||||||||||||||||||||||||
On August 20, 2012, two individuals alleging to represent a putative class of bookers of online hotel reservations filed a complaint against Sabre Holdings, Travelocity.com LP, and several other online travel companies and hotel chains in the U.S. District Court for the Northern District of California, alleging federal and state antitrust and related claims. The complaint alleges generally that the defendants conspired to enter into illegal agreements relating to the price of hotel rooms. Over 30 copycat suits were filed in various courts in the United States. In December 2012, the Judicial Panel on Multi-District Litigation centralized these cases in the U.S. District Court in the Northern District of Texas, which subsequently consolidated them. The proposed class period is January 1, 2003 through May 1, 2013. On June 15, 2013, the court granted Travelocity’s motion to compel arbitration of claims involving Travelocity bookings made on or after February 4, 2010. While all claims from February 4, 2010 through May 1, 2013 are now excluded from the lawsuit and must be arbitrated if pursued at all, the lawsuit still covers claims from January 1, 2003 through February 3, 2010. Together with the other defendants, Travelocity and Sabre filed a motion to dismiss. On February 18, 2014, the court granted the motion and dismissed the plaintiff’s claims without prejudice. The plaintiffs had moved for leave to file an amended complaint but the judge denied the motion on October 27, 2014. The plaintiffs will have an opportunity to appeal. We deny any conspiracy or any anti-competitive actions and we intend to aggressively defend against the claims. | Sublease rent | — | — | (3,574 | ) | |||||||||||||||||||||||||
Even if we are ultimately successful in defending ourselves in this matter, we are likely to incur significant fees, costs and expenses for as long as it is ongoing. In addition, litigation by its nature is highly uncertain and fraught with risk, and it is difficult to predict the outcome of any particular matter. If favorable resolution of the matter is not reached, we could be subject to monetary damages, including treble damages under the antitrust laws, as well as injunctive relief. If injunctive relief were granted, depending on its scope, it could affect the manner in which our Travelocity business is operated and potentially force changes to the existing business model. Any of these consequences could have a material adverse effect on our business, financial condition and results of operations. | ||||||||||||||||||||||||||||||
Litigation Relating to Patent Infringement | Total rent expense | $ | 40,474 | $ | 36,385 | $ | 36,272 | |||||||||||||||||||||||
In April 2010, CEATS, Inc. (“CEATS”) filed a patent infringement lawsuit against several ticketing companies and airlines, including JetBlue, in the Eastern District of Texas. CEATS alleged that the mouse-over seat map that appears on the defendants’ websites infringes certain of its patents. JetBlue’s website is provided by our Airline Solutions business under the SabreSonic Web service. On June 11, 2010, JetBlue requested that we indemnify and defend it for and against the CEATS lawsuit based on the indemnification provision in our agreement with JetBlue, and we agreed to a conditional indemnification. CEATS claimed damages of $0.30 per segment sold on JetBlue’s website during the relevant time period which totaled $10 million. A jury trial began on March 12, 2012, which resulted in a jury verdict invalidating the CEATS’ patents. Final judgment was entered and the plaintiff appealed. The Federal Circuit affirmed the jury’s decision in our favor on April 26, 2013. CEATS did not appeal the Federal Circuit’s decision, and its deadline to do so has passed. On June 28, 2013, the Eastern District denied CEATS’ previously filed motion to vacate the judgment based on an alleged conflict of interest with a mediator. CEATS appealed that decision and the Federal Circuit heard the appeal on May 5, 2014, and subsequently denied the appeal. On July 22, 2014, CEATs filed a motion for rehearing en banc before the Federal Circuit which was denied on September 5, 2014. CEATS has ninety days from the denial to file a petition for a review with the Supreme Court. | ||||||||||||||||||||||||||||||
Indian Income Tax Litigation | Value Added Tax Receivables—We generate Value Added Tax (“VAT”) refund claims, recorded as receivables, in multiple jurisdictions through the normal course of our business. Audits related to these claims are in various stages of investigation. If the results of certain audits or litigation were to become unfavorable or if some of the countries owing a VAT refund default on their obligation due to deterioration in their credit, the uncollectible amounts could be material to our results of operations. In previous years, the right to recover certain VAT receivables associated with our European businesses has been questioned by tax authorities. We believe that our claims are valid under applicable law and as such we will continue to pursue collection, possibly through litigation. Other receivables in our consolidated balance sheets include net VAT receivables totaling $23 million and $19 million as of December 31, 2013 and December 31, 2012, respectively. Although we believe these amounts are collectable, several European countries have recently experienced significantly weakening credit which could impact our future collections from these countries. We continue to assess VAT receivables for collectability and may be required to record reserves in the future. | |||||||||||||||||||||||||||||
We are currently a defendant in income tax litigation brought by the Indian Director of Income Tax (“DIT”) in the Supreme Court of India. The dispute arose in 1999 when the DIT asserted that we have a permanent establishment within the meaning of the Income Tax Treaty between the United States and the Republic of India and accordingly issued tax assessments for assessment years ending March 1998 and March 1999, and later issued further tax assessments for assessment years ending March 2000 through March 2006. We appealed the tax assessments and the Indian Commissioner of Income Tax Appeals returned a mixed verdict. We filed further appeals with the Income Tax Appellate Tribunal, or the ITAT. The ITAT ruled in our favor on June 19, 2009 and July 10, 2009, stating that no income would be chargeable to tax for assessment years ending March 1998 and March 1999, and from March 2000 through March 2006. The DIT appealed those decisions to the Delhi High Court, which found in our favor on July 19, 2010. The DIT has appealed the decision to the Supreme Court of India and no trial date has been set. | In addition to the normal course of business receivables, substantial sums of VAT are due in respect of cross border supplies of rental cars by Holiday Autos, a discontinued operation (see Note 4, Discontinued Operations and Dispositions), from the period 2004 to 2009. A number of European Community countries challenged these claims and litigation has been ongoing for several years. Due to significant delays and other factors impacting our settlement of these claims, we have recorded an allowance for losses relating to such events in assets of discontinued operations in the consolidated balance sheets. The allowances recorded as of December 31, 2013 and December 31, 2012 were $4 million and $37 million, respectively. In December 2013, we received payment of approximately $12 million in respect to claims from Italy related to Holiday Autos VAT, enabling an equivalent amount of the allowance to be reversed at that time. The Central Economic Administrative Tribunal in Spain ruled in our favor in January 2013 on claims for 2008 and 2009 of $6 million and in September 2013 on claims for 2004 through 2007 of $15 million. The funds were received and an equivalent amount of allowance was reversed to net loss from discontinued operations in our consolidated results of operations for the year ended December 31, 2013. Separately, on June 18, 2013, the Court of Appeal in France ruled against us in respect of outstanding VAT refund claims of $4 million made for the periods 2007 through 2009. We believe the merits of our VAT claims are valid and have appealed the decision to the Supreme Court. These amounts are included in the allowance for VAT receivables above. | |||||||||||||||||||||||||||||
We intend to continue to aggressively defend against these claims. Although we do not believe that the outcome of the proceedings will result in a material impact on our business or financial condition, litigation is by its nature uncertain. If the DIT were to fully prevail on every claim, we could be subject to taxes, interest and penalties of approximately $26 million as of September 30, 2014, which could have a material adverse effect on our business, financial condition and results of operations. We do not believe this outcome is probable and therefore have not made any provisions or recorded any liability for the potential resolution of this matter. | Legal Proceedings— | |||||||||||||||||||||||||||||
Litigation Relating to Routine Proceedings | While certain legal proceedings and related indemnification obligations to which we are a party specify the amounts claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated, except in circumstances where an aggregate litigation accrual has been recorded for probable and reasonably estimable loss contingencies. A determination of the amount of accrual required, if any, for these contingencies is made after careful analysis of each matter. The required accrual may change in the future due to new information or developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. | |||||||||||||||||||||||||||||
We are also engaged from time to time in other routine legal and tax proceedings incidental to our business. We do not believe that any of these routine proceedings will have a material impact on the business or our financial condition. | Litigation and Administrative Audit Proceedings Relating to Hotel Occupancy Taxes | |||||||||||||||||||||||||||||
Over the past nine years, various state and local governments in the United States have filed approximately 70 lawsuits against us and other OTAs pertaining primarily to whether Travelocity and other OTAs owe sales or occupancy taxes on some or all of the revenues they earn from facilitating hotel reservations using the merchant revenue model. In the merchant revenue model, the customer pays us an amount at the time of booking that includes (i) service fees, which we collect, and (ii) the price of the hotel room and amounts for occupancy or other local taxes, which we pass along to the hotel supplier. The complaints generally allege, among other things, that the defendants failed to pay to the relevant taxing authority hotel accommodations taxes on the service fees. Courts have dismissed approximately 30 of these lawsuits, some for failure to exhaust administrative remedies and some on the basis that we are not subject to the sales or occupancy tax at issue based on the construction of the language in the ordinance. The Fourth, Sixth and Eleventh Circuits of the United States Courts of Appeals each have ruled in our favor on the merits, as have state appellate courts in Missouri, Alabama, Texas, California, Kentucky, Florida and Pennsylvania, and a number of state and federal trial courts. The remaining lawsuits are in various stages of litigation. We have also settled some cases individually for nuisance value and, with respect to such settlements, have reserved our rights to challenge any effort by the applicable tax authority to impose occupancy taxes in the future. | ||||||||||||||||||||||||||||||
Among the recent favorable decisions, on January 23, 2013, the California Supreme Court declined to hear the appeals of the City of Anaheim and the City of Santa Monica from lower court decisions in favor of Travelocity and other OTAs on the issue of whether local occupancy taxes apply to the merchant revenue model. We and other OTAs have also prevailed on summary judgment motions in San Francisco and Los Angeles. We believe these decisions should be helpful in resolving any other California cases, which are either currently pending or subsequently brought, in our favor. | ||||||||||||||||||||||||||||||
Similarly, on January 23, 2013, the Missouri Court of Appeals upheld a lower court decision in favor of Travelocity and other OTAs on the issue of whether local occupancy taxes in the City of Branson apply to the merchant revenue model. On February 28, 2013, the First District Court of Appeals in Florida affirmed a summary judgment ruling in favor of Travelocity and other OTAs on the issue of whether local accommodation taxes levied by Leon County and 18 other counties in Florida apply to the merchant revenue model. The Florida Supreme Court is currently reviewing this decision. Likewise, on March 29, 2013, a federal district court in New Mexico granted summary judgment, ruling that OTAs are not vendors subject to hotel occupancy tax in New Mexico. On December 13, 2013, the Eleventh Circuit Court of Appeals affirmed summary judgment in our favor in a case that had been pending in Rome, Georgia, finding there was no evidence that we collected but failed to remit tax that the counties could not recover on their common law claims, and that there is no basis in Georgia law (statutory or otherwise) for an award of back taxes. On March 5, 2014, the California Court of Appeals affirmed the trial court’s grant of summary judgment in our favor in the hotel occupancy tax litigation brought against us by the City of San Diego. On March 7, 2014, the trial court in our lawsuit with the Montana Department of Revenue granted our (and the other OTA defendants’) motion for summary judgment. | ||||||||||||||||||||||||||||||
Although we have prevailed in the majority of these lawsuits and proceedings, there have been several adverse judgments or decisions on the merits some of which are subject to appeal. | ||||||||||||||||||||||||||||||
Among the recent adverse decisions, on June 21, 2013, a state trial court in Cook County, Illinois granted summary judgment in favor of the City of Chicago and against Travelocity and other OTAs, ruling that the City’s hotel tax applies to the fees retained by the OTAs because, according to the trial court, OTAs act as hotel “managers” when facilitating hotel reservations. The court did not address damages. After final judgment is entered, Travelocity intends to appeal the court’s decision on the basis that we do not believe that we manage hotels. | ||||||||||||||||||||||||||||||
On November 21, 2013, the New York State Court of Appeals ruled against Travelocity and other OTAs, holding that New York City’s hotel occupancy tax, which was amended in 2009 to capture revenue from fees charged to customers by third-party travel companies, is constitutional because such fees constitute rent as they are a condition of occupancy. We have been collecting and remitting taxes under the statute, so the ruling does not have any impact on our financial results in that regard. | ||||||||||||||||||||||||||||||
On April 4, 2013, the United States District Court for the Western District of Texas (“W.D.T.”) entered a final judgment against Travelocity and other OTAs in a class action lawsuit filed by the City of San Antonio. The final judgment was based on a jury verdict from October 30, 2009 that the OTAs “control” hotels for purposes of city hotel occupancy taxes. Following that jury verdict, on July 1, 2011, the W.D.T. concluded that fees charged by the OTAs are subject to city hotel occupancy taxes and that the OTAs have a duty to assess, collect and remit these taxes. We disagree with the jury’s finding that we “control” hotels, and with the W.D.T.’s conclusions based on the jury finding, and intend to appeal the final judgment to the United States Court of Appeals for the Fifth Circuit. | ||||||||||||||||||||||||||||||
We believe the Fifth Circuit’s resolution of the San Antonio appeal may be affected by a separate Texas state appellate court decision in our favor. On October 26, 2011, the Fourteenth Court of Appeals of Texas affirmed a trial court’s summary judgment ruling in favor of the OTAs in a case brought by the City of Houston and the Harris County-Houston Sports Authority on a similarly worded tax ordinance as the one at issue in the San Antonio case. The Texas Supreme Court denied the City of Houston’s petition to review the case. We believe this decision should provide persuasive authority to the Fifth Circuit in its review of the San Antonio case. | ||||||||||||||||||||||||||||||
On September 24, 2012, a trial court in Washington D.C. granted summary judgment in favor of the District of Columbia on its claim that the OTAs are subject to hotel occupancy tax. The court has not yet addressed any questions related to damages, but is expected to do so during the first quarter of 2014. After final judgment is entered, Travelocity intends to appeal the court’s decision. | ||||||||||||||||||||||||||||||
In late 2012, the Tax Appeal Court of the State of Hawaii granted summary judgment in favor of Travelocity and other OTAs on the issue of whether Hawaii’s hotel occupancy tax applies to the merchant revenue model. However, in January 2013, the same court granted summary judgment in favor of the State of Hawaii and against Travelocity and other OTAs on the issue of whether the state’s general excise tax, which is assessed on all business activity in the state, applies to the merchant revenue model for the period from 2002 to 2011. | ||||||||||||||||||||||||||||||
We expensed $19 million and $25 million in cost of revenue for the years ended December 31, 2013 and 2012, respectively, which represents the amount we would owe to the State of Hawaii, prior to appealing the Tax Appeal Court’s ruling, in back excise taxes, penalties and interest based on the court’s interpretation of the statute. In 2013, we made payments totaling $35 million and maintained an accrued liability of $9 million as of December 31, 2013. Payment of such amount is not an admission that we believe we are subject to the taxes in question. | ||||||||||||||||||||||||||||||
Travelocity has appealed the Tax Appeal Court’s determination that we are subject to general excise tax, as we believe the decision is incorrect and inconsistent with the same court’s prior rulings. If any such taxes are in fact owed (which we dispute), we believe the correct amount would be under $10 million. The ultimate resolution of these contingencies may differ from the liabilities recorded. To the extent our appeal is successful in reducing or eliminating the assessed amounts, the State of Hawaii would be required to refund such amounts, plus interest. On May 20, 2013, the State of Hawaii issued an additional general excise tax assessment for the calendar year 2012. Travelocity has appealed this recent assessment to the Tax Appeal Court, and this assessment has been stayed pending a final appellate decision on the original assessment. | ||||||||||||||||||||||||||||||
On December 9, 2013, the State of Hawaii also issued assessments of general excise tax for merchant rental car bookings facilitated by Travelocity and other OTAs for the period 2001 to 2012 for which we recorded a $2 million reserve in the fourth quarter of 2013. Travelocity intends to appeal the assessment to the Tax Appeal Court and does not believe the excise tax is applicable. | ||||||||||||||||||||||||||||||
The aggregate impact to our results of operations for all litigation and administrative proceedings relating to hotel sales, occupancy or excise taxes for the years ended December 31, 2013, 2012 and 2011 was $27 million, $25 million, and $2 million, respectively, which include all amounts expensed related to the State of Hawaii during those periods. As of December 31, 2013, we have a remaining reserve of $18 million, included in other accrued liabilities in the consolidated balance sheet, for the potential resolution of issues identified related to litigation involving hotel sales, occupancy or excise taxes, which includes the $9 million liability for the remaining payments to the State of Hawaii. As of December 31, 2012, the reserve for litigation involving hotel sales, occupancy or excise taxes was $28 million. Our estimated liability is based on our current best estimate but the ultimate resolution of these issues may be greater or less than the amount recorded and, if greater, could adversely affect our results of operations. | ||||||||||||||||||||||||||||||
In addition to the actions by the tax authorities, four consumer class action lawsuits have been filed against us and other OTAs in which the plaintiffs allege that we made misrepresentations concerning the description of the fees received in relation to facilitating hotel reservations. Generally, the consumer claims relate to whether Travelocity and the other OTAs provided adequate notice to consumers regarding the nature of our fees and the amount of taxes charged or collected. One of these lawsuits was dismissed by the Texas Supreme Court and such dismissal was subsequently affirmed; one was voluntarily dismissed by the plaintiffs; one is pending in Texas state court, where the court is currently considering the plaintiffs’ motion to certify a class action; and the last is pending in federal court, but has been stayed pending the outcome of the Texas state court action. We believe the notice we provided was appropriate. | ||||||||||||||||||||||||||||||
In addition to the lawsuits, a number of state and local governments have initiated inquiries, audits and other administrative proceedings that could result in an assessment of sales or occupancy taxes on fees. If we do not to prevail at the administrative level, those cases could lead to formal litigation proceedings. | ||||||||||||||||||||||||||||||
Pursuant to our Expedia SMA, we will continue to be liable for fees, charges, costs and settlements relating to litigation arising from hotels booked on the Travelocity platform prior to the Expedia SMA. However, fees, charges, costs and settlements relating to litigation from hotels booked subsequent to the Expedia SMA will be shared with Expedia according to the terms of the Expedia SMA. Under the Expedia SMA, we are also required to guarantee Travelocity’s indemnification obligations to Expedia for any liabilities arising out of historical claims with respect to this type of litigation. | ||||||||||||||||||||||||||||||
Airline Antitrust Litigation, US Airways Antitrust Litigation, and DoJ Investigation | ||||||||||||||||||||||||||||||
American Airlines Litigation (state and federal court claims)—In October 2012 we settled two outstanding state and federal lawsuits with American Airlines (“American”) relating to American’s participation in the Sabre GDS. The litigation, primarily involving breach of contract and antitrust claims, arose in January 2011 after American undertook certain marketing activities relating to its “Direct Connect” program (a method of providing its information and booking services directly to travel agents without using a GDS), and we de-preferenced American’s flight information on the GDS and modified certain fees for booking American flights in a manner we believe was permitted under the terms of our distribution and services agreement with American. | ||||||||||||||||||||||||||||||
American alleged that we had taken anticompetitive actions and claimed over $1 billion in actual damages and injunctive relief against us. We denied American’s allegations and aggressively defended against these claims and pursued our own legal rights as warranted. | ||||||||||||||||||||||||||||||
On October 30, 2012, we agreed to settlement terms in the state and federal lawsuits with American and, as a result of the terms of the settlement, renewed our distribution agreement with American for several years. We also entered into renewal agreements with American for Travelocity. Terms of the settlement and distribution agreements were approved by the court presiding over the restructuring procedures for AMR, American’s parent company, pursuant to an order made final on December 20, 2012. The settlement agreement contains mutual releases of all claims by each party and neither party admits any wrong doing on their part. In January 2014, we reached a long-term agreement with American to be the provider of the reservation system for the post-merged American and US Airways. | ||||||||||||||||||||||||||||||
We determined that the settlement agreement constitutes a multiple-element arrangement and recognized a settlement charge of $222 million, net of tax, into our results of operations, representing the estimate of the fair value of the settlement components. This included $64 million on an after tax basis for a $100 million payment made to AMR on December 21, 2012, and a $60 million on an after tax basis that represented the fair value of a second $100 million payment made to AMR in December 2013. The current portion of the settlement liability is reflected in litigation settlement payable and the non-current portion is included in other noncurrent liabilities in the consolidated balance sheets. Fair value of these fixed payment settlement components were estimated using our best estimates of the timing with the resulting values discounted using a discount rate ranging from 6% to 11.5%, depending on the timing of the payment and considering an adjustment for nonperformance risk that represents our own credit risk. The fair value of the settlement amounts associated with the new commercial agreements entered into with American was estimated using the differential cash flow method, by comparing the pricing under the new contracts with American to similar contracts with other customers to determine a differential. This pricing differential was applied to future estimated volumes and discounted using a discount rate of 11.5%. We believe that the timing, discount rates and probabilities used in these estimates reflect appropriate market participant assumptions. | ||||||||||||||||||||||||||||||
Because the settlement liability is considered a multiple-element arrangement and recorded at fair value, the net charge recorded in 2012 consisted of several elements, including cash and future cash to be paid directly to American, payment credits to pay for future technology services that we provided as defined in the agreements and an estimate of the fair value of other agreements entered into concurrently with the settlement agreement. | ||||||||||||||||||||||||||||||
Amounts shown are net of tax utilizing our combined federal and state marginal tax rate of approximately 36%. The associated tax benefits are expected to be realized over the next one to four years and payment credits are expected to be used by American from 2014 through 2017, depending on the level of services we provide. | ||||||||||||||||||||||||||||||
US Airways Antitrust Litigation | ||||||||||||||||||||||||||||||
In April 2011, US Airways sued us in federal court in the Southern District of New York, alleging violations of the Sherman Act Section 1(anticompetitive agreements) and Section 2 (monopolization). The complaint was filed two months after we entered into a new distribution agreement with US Airways. In September 2011, the court dismissed all claims relating to Section 2. The claims that were not dismissed are claims brought under Section 1 of the Sherman Act that relate to our contracts with airlines, especially US Airways itself, which US Airways says contain anticompetitive content-related provisions, and an alleged conspiracy with the other GDSs, allegedly to maintain the industry structure and not to implement US Airways’ preferred system of distributing its Choice Seats product. We strongly deny all of the allegations made by US Airways. In September 2013, US Airways issued a report in which it purported to quantify its damages at either $281 million or $425 million (before trebling), depending on certain assumptions. We believe both estimates are based on faulty assumptions and analysis and therefore are highly overstated. In the event US Airways were to prevail on the merits of its claim, we believe any monetary damages awarded (before trebling) would be significantly less than either of US Airways’ proposed damage amounts. | ||||||||||||||||||||||||||||||
Document discovery and fact witness discovery are complete. We are now in the process of completing expert witness discovery. We expect to complete expert depositions in March 2014. Summary judgment motions are scheduled to be filed in April 2014, with full briefing of those motions expected to be completed in May 2014. All court settings are subject to change. No trial date has been set and we anticipate the most likely trial date would be in September or October 2014, assuming no delays with the court’s schedule and that we do not prevail completely with our summary judgment motions. | ||||||||||||||||||||||||||||||
We have and will incur significant fees, costs and expenses for as long as the litigation is ongoing. In addition, litigation by its nature is highly uncertain and fraught with risk, and it is therefore difficult to predict the outcome of any particular matter. If favorable resolution of the matter is not reached, any monetary damages are subject to trebling under the antitrust laws and US Airways would be eligible to be reimbursed by us for its costs and attorneys’ fees. Depending on the amount of any such judgment, if we do not have sufficient cash on hand, we may be required to seek financing through the issuance of additional equity or from private or public financing. Additionally, US Airways can and has sought injunctive relief, though we believe injunctive relief for US Airways is precluded by the settlement agreement we reached with American Airlines in 2012, which covers affiliates, including through merger, of American Airlines. If injunctive relief were granted, depending on its scope, it could affect the manner in which our airline distribution business is operated and potentially force changes to the existing airline distribution business model. Any of these consequences could have a material adverse effect on our business, financial condition and results of operations. | ||||||||||||||||||||||||||||||
Department of Justice Investigation | ||||||||||||||||||||||||||||||
On May 19, 2011, we received a civil investigative demand (“CID”) from the U.S. Department of Justice (“DOJ”) investigating alleged anticompetitive acts related to the airline distribution component of our business. We are fully cooperating with the DOJ investigation and are unable to make any prediction regarding its outcome. The DOJ is also investigating other companies that own GDSs, and has sent CIDs to other companies in the travel industry. Based on its findings in the investigation, the DOJ may (i) close the file, (ii) seek a consent decree to remedy issues it believes violate the antitrust laws, or (iii) file suit against us for violating the antitrust laws, seeking injunctive relief. If injunctive relief were granted, depending on its scope, it could affect the manner in which our airline distribution business is operated and potentially force changes to the existing airline distribution business model. Any of these consequences would have a material adverse effect on our business, financial condition and results of operations. | ||||||||||||||||||||||||||||||
Insurance Carriers | ||||||||||||||||||||||||||||||
We have disputes against two of our insurance carriers for failing to reimburse defense costs incurred in the American Airlines antitrust litigation, which we settled in October 2012. Both carriers admitted there is coverage, but reserved their rights not to pay should we be found liable for certain of American Airlines’ allegations. Despite their admission of coverage, the insurers have only reimbursed us for a small portion of our significant defense costs. We filed suit against the entities in New York state court alleging breach of contract and a statutory cause of action for failure to promptly pay claims. If we prevail, we may recover some or all amounts already tendered to the insurance companies for payment within the limits of the policies and would be entitled to 18% interest on such amounts. To date, settlement discussions have been unsuccessful. The court has not scheduled a trial date though we anticipate trial to begin in the latter part of 2014. | ||||||||||||||||||||||||||||||
Hotel Related Antitrust Proceedings | ||||||||||||||||||||||||||||||
On August 20, 2012, two individuals alleging to represent a putative class of bookers of online hotel reservations filed a complaint against Sabre Holdings, Travelocity.com LP, and several other online travel companies and hotel chains in the U.S. District Court for the Northern District of California, alleging federal and state antitrust and related claims. The complaint alleges generally that the defendants conspired to enter into illegal agreements relating to the price of hotel rooms. Over 30 copycat suits were filed in various courts in the United States. In December 2012, the Judicial Panel on Multi-District Litigation centralized these cases in the U.S. District Court in the Northern District of Texas, which subsequently consolidated them. The proposed class period is January 1, 2003 through May 1, 2013. On June 15, 2013, the court granted Travelocity’s motion to compel arbitration of claims involving Travelocity bookings made on or after February 4, 2010. While all claims from February 4, 2010 through May 1, 2013 are now excluded from the lawsuit and must be arbitrated if pursued at all, the lawsuit still covers claims from January 1, 2003 through February 3, 2010. Together with the other defendants, Travelocity and Sabre filed a motion to dismiss. On February 18, 2014, the court granted the motion and dismissed the plaintiff’s claims without prejudice. The court gave the plaintiffs 30 days from the date of its February 18, 2014 order to seek leave to file an amended complaint. We deny any conspiracy or any anti-competitive actions and we intend to aggressively defend against the claims. | ||||||||||||||||||||||||||||||
Even if we are ultimately successful in defending ourselves in this matter, we are likely to incur significant fees, costs and expenses for as long as it is ongoing. In addition, litigation by its nature is highly uncertain and fraught with risk, and it is difficult to predict the outcome of any particular matter. If favorable resolution of the matter is not reached, we could be subject to monetary damages, including treble damages under the antitrust laws, as well as injunctive relief. If injunctive relief were granted, depending on its scope, it could affect the manner in which our Travelocity business is operated and potentially force changes to the existing business model. Any of these consequences could have a material adverse effect on our business, financial condition and results of operations. | ||||||||||||||||||||||||||||||
Litigation Relating to Value Added Tax Receivables | ||||||||||||||||||||||||||||||
In the United Kingdom, the Commissioners for Her Majesty’s Revenue & Customs (“HMRC”) have asserted that our subsidiary, Secret Hotels2 Limited (formerly Med Hotels Limited), failed to account for United Kingdom Value Added Tax (“VAT”) on margins earned from hotels located within the European Union (“EU”). This business was sold in February 2009 to a third-party and we account for it as a discontinued operation. Because the sale was structured as an asset sale and we retained the company (Secret Hotels2 Limited) with all potential tax liabilities in respect of the same. HMRC issued assessments of tax totaling approximately $11 million for the period October 1, 2004 to September 30, 2007. We appealed the assessments and in March 2010 the VAT and Duties Tribunal (“First Tribunal”) denied the appeal. We then appealed to the Upper Tribunal (Finance and Tax Chamber) and in July 2011 were successful overturning HMRC’s original assessment. HMRC appealed this decision to the Court of Appeal who on December 3, 2012 found against Secret Hotels2 Limited upholding the decision of the First Tribunal in favor of HMRC. Based upon this Court of Appeal judgment and the limited ability to obtain leave to appeal, we accrued $17 million of expense in discontinued operations during the year ended December 31, 2012, included in liabilities of discontinued operations in the consolidated balance sheet as of December 31, 2012. Secret Hotels2 Limited successfully obtained leave to appeal the Court of Appeal decision to the Supreme Court in 2013, which is the final court of appeal in the United Kingdom, and on March 5, 2014 judgment was given in favor of Secret Hotels2 Limited. We therefore reversed our reserve in 2013 in discontinued operations. Any further opportunities to appeal this decision through the European courts are considered remote. | ||||||||||||||||||||||||||||||
Additionally, HMRC has begun a review of other parts of our lastminute.com business in the United Kingdom. We believe that we have paid the correct amount of VAT on all relevant transactions as now reinforced by the outcome of Secret Hotels 2 case with the Supreme Court and will vigorously defend our position with HMRC or through the courts if necessary. | ||||||||||||||||||||||||||||||
Litigation Relating to Patent Infringement | ||||||||||||||||||||||||||||||
In April 2010, CEATS, Inc. (“CEATS”) filed a patent infringement lawsuit against several ticketing companies and airlines, including JetBlue, in the Eastern District of Texas. CEATS alleged that the mouse-over seat map that appears on the defendants’ websites infringes certain of its patents. JetBlue’s website is provided by our Airline Solutions business under the SabreSonic Web service. On June 11, 2010, JetBlue requested that we indemnify and defend it for and against the CEATS lawsuit based on the indemnification provision in our agreement with JetBlue, and we agreed to a conditional indemnification. CEATS claimed damages of $0.30 per segment sold on JetBlue’s website during the relevant time period totaling $10 million. A jury trial began on March 12, 2012, which resulted in a jury verdict invalidating the plaintiff’s patents. Final judgment was entered and the plaintiff appealed. The Federal Circuit affirmed the jury’s decision in our favor on April 26, 2013. CEATS did not appeal the Federal Circuit’s decision, and its deadline to do so has passed. On June 28, 2013, the Eastern District denied CEATS’ previously filed motion to vacate the judgment based on an alleged conflict of interest with a mediator. CEATS has appealed that decision. | ||||||||||||||||||||||||||||||
Indian Income Tax Litigation | ||||||||||||||||||||||||||||||
We are currently a defendant in income tax litigation brought by the Indian Director of Income Tax (“DIT”) in the Supreme Court of India. The dispute arose in 1999 when the DIT asserted that we have a permanent establishment within the meaning of the Income Tax Treaty between the United States and the Republic of India and accordingly issued tax assessments for assessment years ending March 1998 and March 1999, and later issued further tax assessments for assessment years ending March 2000 through March 2006. We appealed the tax assessments and the Indian Commissioner of Income Tax Appeals returned a mixed verdict. We filed further appeals with the Income Tax Appellate Tribunal, or the ITAT. The ITAT ruled in our favor on June 19, 2009 and July 10, 2009, stating that no income would be chargeable to tax for assessment years ending March 1998 and March 1999, and from March 2000 through March 2006. The DIT appealed those decisions to the Delhi High Court, which found in our favor on July 19, 2010. The DIT has appealed the decision to the Supreme Court of India and no trial date has been set. | ||||||||||||||||||||||||||||||
We intend to continue to aggressively defend against these claims. Although we do not believe that the outcome of the proceedings will result in a material impact on our business or financial condition, litigation is by its nature uncertain. If the DIT were to fully prevail on every claim, we could be subject to taxes, interest and penalties of approximately $25 million, which could have a material adverse effect on our business, financial condition and results of operations. We do not believe this outcome is probable and therefore have not made any provisions or recorded any liability for the potential resolution of this matter. | ||||||||||||||||||||||||||||||
Litigation Relating to Routine Proceedings | ||||||||||||||||||||||||||||||
We are also engaged from time to time in other routine legal and tax proceedings incidental to our business. We do not believe that any of these routine proceedings will have a material impact on the business or our financial condition. |
Segment_Information
Segment Information | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||
Segment Information | 15. Segment Information | 21. Segment Information | ||||||||||||||||||||||||||||||||||||||||
Our reportable segments are based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations. | Our reportable segments are based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations. | |||||||||||||||||||||||||||||||||||||||||
Our business has three reportable segments: Travel Network, Airline and Hospitality Solutions, and Travelocity. Airline and Hospitality Solutions aggregates the Airline Solutions and Hospitality Solutions operating segments as these operating segments have similar economic characteristics, generate revenues on transaction-based fees, incur the same types of expenses and use our SaaS based and hosted applications and platforms to market to the travel industry. | Our business has three reportable segments: Travel Network, Airline and Hospitality Solutions, and Travelocity. Airline and Hospitality Solutions aggregates the Airline Solutions and Hospitality Solutions operating segments as these operating segments have similar economic characteristics, generate revenues on transaction-based fees, incur the same types of expenses and use our SaaS based and hosted applications and platforms to market to the travel industry. | |||||||||||||||||||||||||||||||||||||||||
Our CODM utilizes Adjusted Gross Margin and Adjusted EBITDA as the measures of profitability to evaluate performance of our segments and allocate resources. Segment results do not include unallocated expenses or interest expenses which are centrally managed costs. Benefits expense, including pension expense, postretirement benefits, medical insurance and workers’ compensation are allocated to the segments based on headcount. Depreciation expense on the corporate headquarters building and related facilities costs are allocated to the segments through a facility fee based on headcount. Corporate includes certain shared expenses such as accounting, human resources, legal, corporate systems, and other shared technology costs. Corporate also includes all amortization of intangible assets and any related impairments that originate from purchase accounting, as well as stock based compensation expense, restructuring charges, legal reserves, occupancy taxes and other items not identifiable with one of our segments. | Our CODM utilizes Adjusted Gross Margin and Adjusted EBITDA as the measures of profitability to evaluate performance of our segments and allocate resources. Segment results do not include unallocated expenses or interest expenses which are centrally managed costs. Benefits expense, including pension expense, postretirement benefits, medical insurance and workers’ compensation are allocated to the segments based on headcount. Depreciation expense on the corporate headquarters building and related facilities costs are allocated to the segments through a facility fee based on headcount. Corporate includes certain shared expenses such as accounting, human resources, legal, corporate systems, and other shared technology costs. Corporate also includes all amortization of intangible assets and any related impairments that originate from purchase accounting, as well as stock based compensation expense, restructuring charges, legal reserves, occupancy taxes and other items not identifiable with one of our segments. | |||||||||||||||||||||||||||||||||||||||||
We account for significant intersegment transactions as if the transactions were with third parties, that is, at estimated current market prices. The majority of the intersegment revenues and cost of revenues are between Travelocity and Travel Network, consisting mainly of incentive consideration provided, net of data processing fees incurred, by Travel Network to Travelocity for transactions processed through the Sabre GDS, transaction fees paid by Travelocity to Travel Network for transactions facilitated through the Sabre GDS in which the travel supplier pays Travelocity directly, and fees paid by Travel Network to Travelocity for corporate trips booked through the Travelocity online booking technology. During the second quarter of 2014, Travel Network charged Travelocity a fee of approximately $7 million for not meeting certain minimum booking level requirements. This fee was recorded as revenue on Travel Network and expensed on Travelocity in our segment results and is eliminated in consolidation. In addition, Airline and Hospitality Solutions pay fees to Travel Network for airline trips booked through our GDS. | We account for significant intersegment transactions as if the transactions were with third parties, that is, at estimated current market prices. The majority of the intersegment revenues and cost of revenues are between Travelocity and Travel Network, consisting mainly of incentive consideration provided, net of data processing fees incurred, by Travel Network to Travelocity for transactions processed through the Sabre GDS, transaction fees paid by Travelocity to Travel Network for transactions facilitated through the Sabre GDS in which the travel supplier pays Travelocity directly, and fees paid by Travel Network to Travelocity for corporate trips booked through the Travelocity online booking technology. In addition, Airline and Hospitality Solutions pay fees to Travelocity for airline trips booked through the Travelocity online booking technology. | |||||||||||||||||||||||||||||||||||||||||
Our CODM does not review total assets by segment as operating evaluations and resource allocation decisions are not made on the basis of total assets by segment. | ||||||||||||||||||||||||||||||||||||||||||
Our CODM does not review total assets by segment as operating evaluations and resource allocation decisions are not made on the basis of total assets by segment. Our CODM uses Adjusted Capital Expenditures in making product investment decisions and determining development resource requirements. | The performance of our segments is evaluated primarily on Adjusted Gross Margin and Adjusted EBITDA which are not recognized terms under GAAP. Our uses of Adjusted Gross Margin and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. | |||||||||||||||||||||||||||||||||||||||||
The performance of our segments is evaluated primarily on Adjusted Revenue, Adjusted Gross Margin and Adjusted EBITDA which are not recognized terms under GAAP. Our uses of Adjusted Revenue, Adjusted Gross Margin and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We define Adjusted Revenue as revenue adjusted for the amortization of Expedia SMA incentive payments, which are recorded as a reduction to revenue and are being amortized over the non-cancellable term of the Expedia SMA (see Note 4, Restructuring Charges). We define Adjusted Gross Margin as operating income (loss) adjusted for selling, general and administrative expenses, impairment, depreciation and amortization, amortization of upfront incentive consideration, restructuring and other costs, litigation and taxes, including penalties, stock-based compensation and amortization of Expedia SMA incentive payments. The definition of Adjusted Gross Margin was revised in the first quarter of 2014 to adjust for restructuring and other costs, litigation and taxes, including penalties and stock-based compensation included in cost of revenue which differs from Adjusted Gross Margin presented in our prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act on April 17, 2014. Adjusted Gross Margin for the prior year period has been recast to conform to our revised definition. We define Adjusted EBITDA as income (loss) from continuing operations adjusted for impairment, depreciation and amortization of property and equipment, amortization of capitalized implementation costs, acquisition related amortization, amortization of upfront incentive consideration, interest expense, net, loss on extinguishment of debt, other, net, restructuring and other costs, litigation and taxes including penalties, stock-based compensation, management fees, amortization of Expedia SMA incentive payments and income taxes. We define Adjusted Capital Expenditures as additions to property and equipment and capitalized implementation costs during the periods presented. | We define Adjusted Gross Margin as operating income (loss) adjusted for selling, general and administrative expenses, impairments, depreciation and amortization, amortization of upfront incentive consideration, restructuring and other costs, litigation and taxes, including penalties, and stock-based compensation. In 2014, we revised the definition of Adjusted Gross Margin to adjust for restructuring and other costs, litigation and taxes, including penalties and stock-based compensation included in cost of revenue which differs from Adjusted Gross Margin as previously defined and presented in our financial statements for the periods ended December 31, 2013, 2012 and 2011 included in the prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act on April 17, 2014. Adjusted Gross Margin for all periods presented has been recast to the revised definition: | |||||||||||||||||||||||||||||||||||||||||
Segment information for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Previously | As Revised | Previously | As Revised | Previously | As Revised | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | Reported | Reported | Reported | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | (Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
Adjusted Revenue | Adjusted Gross Margin | |||||||||||||||||||||||||||||||||||||||||
Travel Network | $ | 466,278 | $ | 449,562 | $ | 1,420,341 | $ | 1,381,105 | Travel Network | $ | 860,793 | $ | 860,793 | $ | 843,863 | $ | 843,863 | $ | 772,753 | $ | 772,753 | |||||||||||||||||||||
Airline and Hospitality Solutions | 208,685 | 182,505 | 571,975 | 522,794 | Airline and Hospitality Solutions | 262,386 | 262,386 | 218,421 | 218,421 | 185,147 | 185,147 | |||||||||||||||||||||||||||||||
Travelocity | 88,853 | 160,811 | 268,848 | 457,518 | Travelocity | 353,489 | 353,489 | 413,802 | 413,802 | 447,790 | 447,790 | |||||||||||||||||||||||||||||||
Eliminations | (4,638 | ) | (17,055 | ) | (24,253 | ) | (58,018 | ) | Eliminations | (717 | ) | (717 | ) | (1,010 | ) | (1,010 | ) | (1,083 | ) | (1,083 | ) | |||||||||||||||||||||
Corporate | (92,142 | ) | (56,904 | ) | (85,214 | ) | (56,787 | ) | (74,093 | ) | (70,853 | ) | ||||||||||||||||||||||||||||||
Total Adjusted Revenue | 759,178 | 775,823 | 2,236,911 | 2,303,399 | ||||||||||||||||||||||||||||||||||||||
Amortization of Expedia SMA incentive payments | (2,875 | ) | — | (7,625 | ) | — | Total | $ | 1,383,809 | $ | 1,419,047 | $ | 1,389,862 | $ | 1,418,289 | $ | 1,330,514 | $ | 1,333,754 | |||||||||||||||||||||||
Total revenue | $ | 756,303 | $ | 775,823 | $ | 2,229,286 | $ | 2,303,399 | We define Adjusted EBITDA as income (loss) from continuing operations adjusted for impairment, acquisition related amortization expense, gain (loss) on sale of business and assets, gain (loss) on extinguishment of debt, other, net, restructuring and other costs, litigation and taxes including penalties, stock-based compensation, management fees, depreciation of fixed assets, non-acquisition related amortization, amortization of upfront incentive consideration, interest expense, and income taxes. | |||||||||||||||||||||||||||||||||
Adjusted Gross Margin(a) | Segment information for the year ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||||||||||||||||||||||||||||||
Travel Network | $ | 216,214 | $ | 207,506 | $ | 670,023 | $ | 652,568 | ||||||||||||||||||||||||||||||||||
Airline and Hospitality Solutions | 94,747 | 64,539 | 235,546 | 183,237 | ||||||||||||||||||||||||||||||||||||||
Travelocity | 66,013 | 102,710 | 184,124 | 277,895 | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
Eliminations | (41 | ) | (123 | ) | (7,498 | ) | (514 | ) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Corporate | (18,579 | ) | (5,578 | ) | (38,119 | ) | (28,651 | ) | (Amounts in thousands) | |||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 358,354 | $ | 369,054 | $ | 1,044,076 | $ | 1,084,535 | Travel Network | $ | 1,821,498 | $ | 1,795,127 | $ | 1,740,007 | |||||||||||||||||||||||||||
Airline and Hospitality Solutions | 711,745 | 597,649 | 522,692 | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(b) | Travelocity | 585,989 | 659,472 | 699,604 | ||||||||||||||||||||||||||||||||||||||
Travel Network | $ | 193,823 | $ | 183,728 | $ | 606,637 | $ | 582,268 | ||||||||||||||||||||||||||||||||||
Airline and Hospitality Solutions | 81,671 | 56,940 | 197,686 | 145,485 | Total segments | 3,119,232 | 3,052,248 | 2,962,303 | ||||||||||||||||||||||||||||||||||
Travelocity | 15,954 | 7,403 | (18,116 | ) | 7,528 | Eliminations | (69,707 | ) | (77,884 | ) | (106,342 | ) | ||||||||||||||||||||||||||||||
Total segments | 291,448 | 248,071 | 786,207 | 735,281 | Total revenue | $ | 3,049,525 | $ | 2,974,364 | $ | 2,855,961 | |||||||||||||||||||||||||||||||
Corporate | (61,522 | ) | (46,722 | ) | (168,857 | ) | (151,318 | ) | ||||||||||||||||||||||||||||||||||
Adjusted gross margin | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 229,926 | $ | 201,349 | $ | 617,350 | $ | 583,963 | Travel Network | $ | 860,793 | $ | 843,863 | $ | 772,753 | |||||||||||||||||||||||||||
Airline and Hospitality Solutions | 262,386 | 218,421 | 185,147 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Travelocity | 353,489 | 413,802 | 447,790 | ||||||||||||||||||||||||||||||||||||||
Travel Network | $ | 14,788 | $ | 13,225 | $ | 46,597 | $ | 37,810 | Eliminations | (717 | ) | (1,010 | ) | (1,083 | ) | |||||||||||||||||||||||||||
Airline and Hospitality Solutions | 26,031 | 19,853 | 79,729 | 57,225 | Corporate | (56,904 | ) | (56,787 | ) | (70,853 | ) | |||||||||||||||||||||||||||||||
Travelocity | 1,122 | 1,237 | 3,585 | 8,826 | ||||||||||||||||||||||||||||||||||||||
Total adjusted gross margin(a) | $ | 1,419,047 | $ | 1,418,289 | $ | 1,333,754 | ||||||||||||||||||||||||||||||||||||
Total segments | 41,941 | 34,315 | 129,911 | 103,861 | ||||||||||||||||||||||||||||||||||||||
Corporate | 29,771 | 42,051 | 100,550 | 126,416 | Adjusted EBITDA(b) | |||||||||||||||||||||||||||||||||||||
Travel Network | $ | 772,208 | $ | 768,452 | $ | 692,571 | ||||||||||||||||||||||||||||||||||||
Total | $ | 71,712 | $ | 76,366 | $ | 230,461 | $ | 230,277 | Airline and Hospitality Solutions | 213,075 | 166,282 | 135,184 | ||||||||||||||||||||||||||||||
Travelocity | 22,852 | 61,119 | 76,469 | |||||||||||||||||||||||||||||||||||||||
Adjusted Capital Expenditures(c) | ||||||||||||||||||||||||||||||||||||||||||
Travel Network | $ | 13,238 | $ | 19,542 | $ | 43,858 | $ | 51,593 | Total segments | 1,008,135 | 995,853 | 904,224 | ||||||||||||||||||||||||||||||
Airline and Hospitality Solutions | 39,994 | 38,993 | 117,784 | 132,563 | Corporate | (216,812 | ) | (209,224 | ) | (184,061 | ) | |||||||||||||||||||||||||||||||
Travelocity | 2,685 | 3,571 | 6,810 | 14,367 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 791,323 | $ | 786,629 | $ | 720,163 | ||||||||||||||||||||||||||||||||||||
Total segments | 55,917 | 62,106 | 168,452 | 198,523 | ||||||||||||||||||||||||||||||||||||||
Corporate | 3,890 | 5,174 | 19,535 | 18,907 | Depreciation and amortization | |||||||||||||||||||||||||||||||||||||
Travel Network | $ | 52,507 | $ | 36,659 | $ | 33,705 | ||||||||||||||||||||||||||||||||||||
Total | $ | 59,807 | $ | 67,280 | $ | 187,987 | $ | 217,430 | Airline and Hospitality Solutions | 77,320 | 52,010 | 31,930 | ||||||||||||||||||||||||||||||
Travelocity | 8,712 | 39,892 | 43,498 | |||||||||||||||||||||||||||||||||||||||
(a) | The following tables set forth the reconciliation of Adjusted Gross Margin to operating income in our statement of operations (in thousands): | Total segments | 138,539 | 128,561 | 109,133 | |||||||||||||||||||||||||||||||||||||
Corporate | 169,056 | 187,172 | 183,984 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Total | $ | 307,595 | $ | 315,733 | $ | 293,117 | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Adjusted capital expenditures(c) | ||||||||||||||||||||||||||||||||||||||
Adjusted Gross Margin | $ | 358,354 | $ | 369,054 | $ | 1,044,076 | $ | 1,084,535 | Travel Network | $ | 69,357 | $ | 45,262 | $ | 54,451 | |||||||||||||||||||||||||||
Less adjustments: | Airline and Hospitality Solutions | 170,860 | 163,754 | 96,751 | ||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 169,183 | 208,033 | 575,413 | 620,226 | Travelocity | 16,861 | 26,085 | 44,026 | ||||||||||||||||||||||||||||||||||
Impairment | — | 2,837 | — | 138,435 | ||||||||||||||||||||||||||||||||||||||
Restructuring charges | 4,735 | 15,889 | 2,325 | 15,889 | Total segments | 257,078 | 235,101 | 195,228 | ||||||||||||||||||||||||||||||||||
Cost of revenue adjustments: | Corporate | 27,762 | 36,704 | 28,519 | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization(1) | 47,252 | 49,421 | 157,146 | 150,441 | ||||||||||||||||||||||||||||||||||||||
Amortization of upfront incentive consideration(2) | 10,388 | 9,385 | 33,177 | 28,736 | Total | $ | 284,840 | $ | 271,805 | $ | 223,747 | |||||||||||||||||||||||||||||||
Restructuring and other costs(4) | 4,865 | 2,582 | 10,016 | 4,521 | ||||||||||||||||||||||||||||||||||||||
Litigation and taxes, including penalties(5) | 188 | 5,389 | 1,127 | 19,864 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 2,172 | 544 | 5,618 | 816 | (a) | The following table sets forth the reconciliation of Adjusted Gross Margin to operating income (loss) in our statement of operations: | ||||||||||||||||||||||||||||||||||||
Amortization of Expedia SMA incentive payments | 2,875 | — | 7,625 | — | ||||||||||||||||||||||||||||||||||||||
Operating income | $ | 116,696 | $ | 74,974 | $ | 251,629 | $ | 105,607 | Year Ended December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
(b) | The following tables set forth the reconciliation of Adjusted EBITDA to loss from continuing operations in our statement of operations (in thousands): | Adjusted Gross Margin | $ | 1,419,047 | $ | 1,418,289 | $ | 1,333,754 | ||||||||||||||||||||||||||||||||||
Less Adjustments: | ||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 792,929 | 1,188,248 | 806,435 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Impairment | 138,435 | 573,180 | 185,240 | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | Restructuring charges | 36,551 | — | — | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Cost of revenue adjustments: | ||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 229,926 | $ | 201,349 | $ | 617,350 | $ | 583,963 | Depreciation and amortization(1) | 202,485 | 198,206 | 172,846 | ||||||||||||||||||||||||||||||
Less adjustments: | Amortization of upfront incentive consideration(2) | 36,649 | 36,527 | 37,748 | ||||||||||||||||||||||||||||||||||||||
Impairment | — | 2,837 | — | 138,435 | Restructuring and other costs(5) | 12,615 | 4,525 | 1,786 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization of property and equipment(1a) | 39,524 | 32,936 | 122,409 | 97,687 | Litigation and taxes, including penalties(6) | 20,921 | 22,187 | — | ||||||||||||||||||||||||||||||||||
Amortization of capitalized implementation costs(1b) | 9,084 | 8,437 | 27,111 | 27,038 | Stock-based compensation | 1,702 | 1,715 | 1,454 | ||||||||||||||||||||||||||||||||||
Acquisition related amortization(1c) | 23,905 | 35,794 | 83,344 | 107,955 | ||||||||||||||||||||||||||||||||||||||
Amortization of upfront incentive consideration(2) | 10,388 | 9,385 | 33,177 | 28,736 | Operating income (loss) | $ | 176,760 | $ | (606,299 | ) | $ | 128,245 | ||||||||||||||||||||||||||||||
Interest expense, net | 50,153 | 63,454 | 167,332 | 209,653 | ||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | 33,538 | 12,181 | ||||||||||||||||||||||||||||||||||||||
Other, net(3) | (565 | ) | 2,429 | (760 | ) | 1,099 | (b) | The following tables set forth the reconciliation of Adjusted EBITDA to loss from continuing operations in our statement of operations: | ||||||||||||||||||||||||||||||||||
Restructuring and other costs(4) | 14,482 | 21,754 | 24,056 | 26,296 | ||||||||||||||||||||||||||||||||||||||
Litigation and taxes, including penalties(5) | 4,440 | 8,579 | 12,497 | 31,543 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 5,472 | 2,686 | 22,434 | 5,446 | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
Management fees(6) | 193 | 2,126 | 23,701 | 7,347 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Amortization of Expedia SMA incentive payments | 2,875 | — | 7,625 | — | (Amounts in thousands) | |||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 30,956 | 7,861 | 27,878 | (5,229 | ) | Adjusted EBITDA | $ | 791,323 | $ | 786,629 | $ | 720,163 | ||||||||||||||||||||||||||||||
Less Adjustments: | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 39,019 | $ | 3,071 | $ | 33,008 | $ | (104,224 | ) | Depreciation and amortization of property and equipment(1a) | 131,483 | 135,561 | 122,640 | |||||||||||||||||||||||||||||
Amortization of capitalized implementation costs(1b) | 35,551 | 20,855 | 11,365 | |||||||||||||||||||||||||||||||||||||||
Amortization of upfront incentive consideration(2) | 36,649 | 36,527 | 37,748 | |||||||||||||||||||||||||||||||||||||||
-1 | Depreciation and amortization expenses: | Interest expense, net | 274,689 | 232,450 | 174,390 | |||||||||||||||||||||||||||||||||||||
a. | Depreciation and amortization of property and equipment includes software developed for internal use. | Impairment(3) | 138,435 | 596,980 | 185,240 | |||||||||||||||||||||||||||||||||||||
b. | Amortization of capitalized implementation costs represents amortization of upfront costs to implement new customer contracts under our SaaS and hosted revenue model. | Acquisition related amortization(1c) | 143,765 | 162,517 | 162,312 | |||||||||||||||||||||||||||||||||||||
c. | Acquisition related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date and amortization of the excess basis in our underlying equity in joint ventures. | Gain on sale of business and assets | — | (25,850 | ) | — | ||||||||||||||||||||||||||||||||||||
-2 | Our Travel Network business at times makes upfront cash payments or other consideration to travel agency subscribers at the inception or modification of a service contract, which are capitalized and amortized over an average expected life of the service contract, generally over three to five years. Such consideration is made with the objective of increasing the number of clients or to ensure or improve customer loyalty. Such service contract terms are established such that the supplier and other fees generated over the life of the contract will exceed the cost of the incentive consideration provided up front. Such service contracts with travel agency subscribers require that the customer commit to achieving certain economic objectives and generally have terms requiring repayment of the upfront incentive consideration if those objectives are not met. | Loss on extinguishment of debt | 12,181 | — | — | |||||||||||||||||||||||||||||||||||||
-3 | Other, net primarily represents foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency. | Other, net(4) | 6,724 | 1,385 | (1,156 | ) | ||||||||||||||||||||||||||||||||||||
-4 | Restructuring and other costs represents charges associated with business restructuring and associated changes implemented which resulted in severance benefits related to employee terminations, integration and facility opening or closing costs and other business reorganization costs. | Restructuring and other costs(5) | 59,052 | 6,776 | 12,986 | |||||||||||||||||||||||||||||||||||||
-5 | Litigation and taxes, including penalties represents charges or settlements associated with airline antitrust litigation as well as payments or reserves taken in relation to certain retroactive hotel occupancy and excise tax disputes (see Note 14, Contingencies). | Litigation and taxes, including penalties(6) | 39,431 | 418,622 | 21,601 | |||||||||||||||||||||||||||||||||||||
-6 | We paid an annual management fee to TPG and Silver Lake in an amount between (i) $5 million and (ii) $7 million, the actual amount of which is calculated based upon 1% of Adjusted EBITDA, earned by the company in such fiscal year up to a maximum of $7 million. In addition, the MSA provided for reimbursement of certain costs incurred by TPG and Silver Lake, which are included in this line item. The MSA was terminated in connection with our initial public offering. | Stock-based compensation | 9,086 | 9,834 | 7,334 | |||||||||||||||||||||||||||||||||||||
Management fees(7) | 8,761 | 7,769 | 7,191 | |||||||||||||||||||||||||||||||||||||||
(c) | Includes capital expenditures and capitalized implementation costs as summarized below (in thousands): | (Benefit) provision for income taxes | (14,029 | ) | (195,071 | ) | 57,806 | |||||||||||||||||||||||||||||||||||
Loss from continuing operations | $ | (90,455 | ) | $ | (621,726 | ) | $ | (79,294 | ) | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | -1 | Depreciation and amortization expenses (see Note 2, Summary of Significant Accounting Policies for associated asset lives): | |||||||||||||||||||||||||||||||||||||
Additions to property and equipment | $ | 49,802 | $ | 57,257 | $ | 160,385 | $ | 168,744 | a. | Depreciation and amortization of property and equipment represents depreciation of property and equipment, including software developed for internal use. | ||||||||||||||||||||||||||||||||
Capitalized implementation costs | 10,005 | 10,023 | 27,602 | 48,686 | b. | Amortization of capitalized implementation costs represents amortization of up-front costs to implement new customer contracts under our SaaS and hosted revenue model. | ||||||||||||||||||||||||||||||||||||
c. | Acquisition related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date and amortization of the excess basis in our underlying equity in joint ventures. | |||||||||||||||||||||||||||||||||||||||||
Adjusted Capital Expenditures | $ | 59,807 | $ | 67,280 | $ | 187,987 | $ | 217,430 | -2 | Our Travel Network business at times provides upfront incentive consideration to travel agency subscribers at the inception or modification of a service contract, which are capitalized and amortized to cost of revenue over an average expected life of the service contract, generally over three to five years. Such consideration is made with the objective of increasing the number of clients or to ensure or improve customer loyalty. Such service contract terms are established such that the supplier and other fees generated over the life of the contract will exceed the cost of the incentive consideration provided up front. Such service contracts with travel agency subscribers require that the customer commit to achieving certain economic objectives and generally have terms requiring repayment of the upfront incentive consideration if those objectives are not met. | ||||||||||||||||||||||||||||||||
-3 | Represents impairment charges to assets (see Note 8, Goodwill and Intangible Assets) as well as $24 million in 2012, representing our share of impairment charges recorded by one of our equity method investments, Abacus. | |||||||||||||||||||||||||||||||||||||||||
-4 | Other, net primarily represents foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency. | |||||||||||||||||||||||||||||||||||||||||
-5 | Restructuring and other costs represents charges associated with business restructuring and associated changes implemented which resulted in severance benefits related to employee terminations, integration and facility opening or closing costs and other business reorganization costs. | |||||||||||||||||||||||||||||||||||||||||
-6 | Litigation and taxes, including penalties represents charges or settlements associated with airline antitrust litigation as well as payments or reserves taken in relation to certain retroactive hotel occupancy and excise tax disputes (see Note 20, Commitments and Contingencies). | |||||||||||||||||||||||||||||||||||||||||
-7 | We have been paying an annual management fee to TPG and Silver Lake in an amount equal to the lesser of (i) 1% of our Adjusted EBITDA and (ii) $7 million. This also includes reimbursement of certain costs incurred by TPG and Silver Lake. | |||||||||||||||||||||||||||||||||||||||||
(c) | Includes capital expenditures and capitalized implementation costs as summarized below: | |||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Additions to property and equipment | $ | 226,026 | $ | 193,262 | $ | 164,638 | ||||||||||||||||||||||||||||||||||||
Capitalized implementation costs | 58,814 | 78,543 | 59,109 | |||||||||||||||||||||||||||||||||||||||
Adjusted capital expenditures | $ | 284,840 | $ | 271,805 | $ | 223,747 | ||||||||||||||||||||||||||||||||||||
Transaction-based revenue accounted for approximately 89%, 90% and 93% of our Travel Network revenue for the years ended December 31, 2013, 2012 and 2011, respectively. Transaction-based revenue accounted for approximately 70%, 67% and 66% of our Airline and Hospitality Solutions revenue for the years ended December 31, 2013, 2012 and 2011, respectively. Transaction-based revenue accounted for approximately 87%, 88% and 87% of our Travelocity revenue for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||||||
All joint venture equity income and expenses relate to Travel Network. | ||||||||||||||||||||||||||||||||||||||||||
We have operations with foreign revenue and long-lived assets in approximately 128 countries. Our revenues and long-lived assets, excluding goodwill and intangible assets, by geographic region are summarized below. Revenues are attributed to countries based on the location of the customer. | ||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||
United States | $ | 1,765,699 | $ | 1,857,771 | $ | 1,754,830 | ||||||||||||||||||||||||||||||||||||
Europe | 501,953 | 470,112 | 451,734 | |||||||||||||||||||||||||||||||||||||||
All other | 781,873 | 646,481 | 649,397 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 3,049,525 | $ | 2,974,364 | $ | 2,855,961 | ||||||||||||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Long-lived assets | ||||||||||||||||||||||||||||||||||||||||||
United States | $ | 472,517 | $ | 394,625 | ||||||||||||||||||||||||||||||||||||||
Europe | 10,269 | 7,909 | ||||||||||||||||||||||||||||||||||||||||
All other | 15,737 | 5,862 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 498,523 | $ | 408,396 | ||||||||||||||||||||||||||||||||||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | |||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | ||||
Basis of Presentation—The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). We consolidate all of our majority-owned subsidiaries and companies over which we exercise control through majority voting rights. Other than as discussed in the following paragraphs, no other entities are currently consolidated due to control through operating agreements, financing agreements, or as the primary beneficiary of a variable interest entity. The consolidated financial statements include our accounts after elimination of all significant intercompany balances and transactions. All dollar amounts in the financial statements and the tables in the notes, except per-share amounts, are stated in thousands of U.S. dollars unless otherwise indicated. All amounts in the notes reference results from continuing operations unless otherwise indicated. | |||||
In December 2009, our wholly-owned subsidiary Travelocity.com Inc. was converted into Travelocity.com LLC, a Delaware limited liability company, pursuant to Delaware law, and the capital structure of Travelocity.com LLC was split into common and preferred units. On December 31, 2009, 95% of the common units of Travelocity.com LLC were distributed as a dividend to a newly-formed Delaware corporation, TVL Common, Inc., which is owned by the holders of record of Sabre Corporation’s preferred stock. We retained the remaining 5% of the common units and 100% of the preferred units. On December 31, 2012, we implemented a series of transactions which resulted in the merger of TVL Common, Inc. back into our capital structure. The owners of 95% of the common units of TVL Common, Inc. received shares of Sabre Corporation in exchange. For so long as any preferred units remained outstanding, the holder(s) of the preferred units had full voting rights and control of Travelocity.com LLC and the holder(s) of common units had no voting rights or control. As such, we, as the holder of all of the preferred units, consolidated the results of Travelocity.com LLC and presented a noncontrolling interest for the portion of the common units distributed through the dividend. Profits and losses were allocated in accordance with the limited liability company agreement and securities held by each party. This merger was a reacquisition of a noncontrolling interest from an entity under common control and has been recorded as an equity transaction. | |||||
Equity Method Investments—We utilize the equity method to account for our interests in joint ventures and investments in stock of other companies that we do not control but over which we exert significant influence. Investments in the common stock of other companies over which we do not exert significant influence are accounted for at cost. We periodically evaluate equity and debt investments in entities accounted for at cost or under the equity method for impairment by reviewing updated financial information provided by the investee, including valuation information from new financing transactions by the investee and information relating to competitors of investees when available. If we determine that a cost method investment is other than temporarily impaired, the carrying value of the investment is reduced to its estimated fair value through earnings. For the year ended December 31, 2012, joint venture equity income included a $24 million impairment of goodwill recorded by one of our investees. For the years ended December 31, 2013, 2012 and 2011, impairments of investments carried at cost were not material to our results of operations. | |||||
The following table displays the name of each of those investees that we do not control but over which we exert significant influence, and our voting interest in their stock held at December 31, 2013: | |||||
Joint Venture | Voting | ||||
Interest | |||||
Auto Holidays (Pty) Limited (South Africa) | 50 | % | |||
ESS Elektroniczne Systemy Spzedazy Sp. zo.o | 40 | % | |||
ABACUS International PTE Ltd | 35 | % | |||
Sabre Bulgaria AD | 20 | % | |||
Our investments in joint ventures on the consolidated balance sheets includes $93 million and $97 million, as of December 31, 2013 and 2012, respectively, of excess basis over our underlying equity in joint ventures. This differential represents goodwill in addition to identifiable intangible assets which are being amortized to joint venture intangible amortization over their estimated lives. | |||||
Reclassifications—Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the 2013 presentation. Other than as described below, these reclassifications are not material, either individually or in the aggregate, to our consolidated financial statements. | |||||
In 2013, we have removed the presentation of gross margin from our consolidated statement of operations. Additionally, we have reclassified depreciation and amortization from a single line in our consolidated statement of operations to be reflected as a part of cost of revenues or selling, general and administrative expenses based on the nature of the expense. The impact to cost of revenue and selling, general and administrative, considering the impact of discontinued operations, for the year ended December 31, 2012 was an increase to cost of revenue of $198 million and an increase to selling, general and administrative of $118 million. The impact for the year ended December 31, 2011 was an increase to cost of revenue of $173 million and an increase to selling, general and administrative of $120 million. The amount of depreciation and amortization reclassified to discontinued operations was $2 million for each of the years ended December 31, 2012 and 2011. | |||||
In addition, certain amounts previously reported in our December 31, 2012 and 2011 financial statements have been reclassified to conform to December 31, 2013 presentation, as a result of discontinued operations. See Note 4, Discontinued Operations and Dispositions. | |||||
Use of Estimates—The preparation of these financial statements in conformity with GAAP requires that certain amounts be recorded based on estimates and assumptions made by management. Actual results could differ from these estimates and assumptions. Our accounting policies, which include significant estimates and assumptions, include, among other things, estimation of the collectability of accounts receivable, amounts for future cancellations of bookings processed through the Sabre global distribution system (“GDS”), revenue recognition for software development, determination of the fair value of assets and liabilities acquired in a business combination, determination of the fair value of derivatives, the evaluation of the recoverability of the carrying value of intangible assets and goodwill, assumptions utilized in the determination of pension and other postretirement benefit liabilities, determination of the fair value of our litigation settlement payable, assumptions made in the calculation of restructuring liabilities and the evaluation of uncertainties surrounding the calculation of our tax assets and liabilities. These policies are discussed in greater detail below. | |||||
Revenue Recognition—We employ a number of revenue models across our businesses, depending on the dynamics of the industry segment and the technology on which the revenue is based. Some revenue models are used in multiple businesses. Travel Network primarily employs the transaction revenue model. Airline and Hospitality Solutions primarily employs the SaaS and hosted and consulting revenue models, as well as the software licensing fee model to a lesser extent. Travelocity has primarily employed two revenue models: the merchant model, which we refer to as our “Net Rate Program,” under which we recognize a majority of our hotel revenues, and the agency model, under which we recognize most of our airline, car and cruise revenues and a small portion of hotel revenues. Beginning in the fourth quarter of 2013, Travelocity in the U.S. and Canada began shifting to the marketing fee revenue model while Travelocity—Europe continues to primarily employ the merchant model and agency model. Both Travel Network and Travelocity derive some of their revenues from the media model, earning advertising revenues from travel suppliers and other entities that advertise their products to travelers and travel agencies using our networks. We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. | |||||
Transaction Revenue Model—This model accounts for substantially all of Travel Network’s revenues. We define a direct billable booking as any booking that generates a fee directly to Travel Network. Transaction fees include, but are not limited to, transaction fees paid by travel suppliers for selling their inventory through the Sabre GDS and transaction fees paid by travel agency subscribers related to their use of the Sabre GDS. | |||||
Pursuant to this model, a transaction occurs when a travel agency or corporate travel department books, or reserves, a travel supplier’s product on the Sabre GDS. We receive revenue from a travel supplier, travel agency, or corporate travel department depending upon the commercial arrangement represented in each of their contracts. | |||||
Transaction revenue for airline travel reservations is recognized at the time of the booking of the reservation, net of estimated future cancellations. Our transaction fee cancellation reserve was $8 million at December 31, 2013 and 2012. Transaction revenue for car rental, hotel bookings and other travel providers is recognized at the time the reservation is used by the customer. | |||||
Software-as-a-Service and Hosted Revenue Model—SaaS and hosted is the primary revenue model employed by Airline and Hospitality Solutions. In this revenue model, we host software solutions on our own secure platforms, or deploy it through our SaaS solutions and we maintain the software as well as the infrastructure it employs. Our customers, which include airlines, airports and hotel companies, pay us an implementation fee and a recurring usage-based fee for the use of the software pursuant to contracts with terms that typically range between three and ten years and generally include minimum annual volume requirements. This usage-based fee arrangement allows our customers to pay for software normally on a monthly basis, to the extent that it is used. Similar contracts with the same customer which are entered into at or around the same period are analyzed for revenue recognition purposes on a combined basis. Revenue from implementation fees is generally recognized over the term of the agreement. The amount of periodic usage fees is typically based on a metric relevant to the software’s purpose. We recognize revenue from recurring usage-based fees in the period earned, which typically fluctuates based on a real-time metric, such as the actual number of passengers boarded or the actual number of hotel bookings made in a given month. | |||||
Consulting Revenue Model—Our SaaS and hosted offerings can be sold as part of multiple-element agreements for which we also provide consulting services. Our consulting services are primarily focused on helping customers achieve better utilization of and return on their software investment. Often we provide consulting services during the implementation phase of our SaaS solutions. In such cases, we account for consulting service revenue separately from implementation and recurring usage-based fees, with value assigned to each element based on its relative selling price to the total selling price. We perform a market analysis on a periodic basis to determine the range of selling prices for each product and service. Estimated selling prices are set for each product and service delivered to customers. The revenue for consulting services is generally recognized over the period the services are performed. | |||||
Software Licensing Fee Revenue Model—The software licensing fee revenue model is utilized by Airline and Hospitality Solutions. Under this model, we generate revenue by charging customers for the installation and use of our software products. Some contracts under this model generate additional revenue for the maintenance of the software product. When software is sold without associated customization or implementation services, revenue from software licensing fees is recognized when all of the following are met: (i) the software is delivered, (ii) fees are fixed or determinable, (iii) no undelivered elements are essential to the functionality of delivered software, and (iv) collection is probable. When software is sold with customization or implementation services, revenue from software licensing fees is recognized based on the percentage of completion of the customization and implementation services. Fees for software maintenance are recognized ratably over the life of the contract. We are unable to determine vendor-specific objective evidence of fair value for software maintenance fees. Therefore, when fees for software maintenance are included in software license agreements, revenue from the software license, customization, implementation and the maintenance are recognized ratably over the related contract term. | |||||
Marketing Fee Revenue Model—In the third quarter of 2013, we initiated plans to shift Travelocity in the U.S. and Canada away from a fixed-cost model to a lower-cost, performance based shared revenue structure. We entered into an exclusive, long-term strategic marketing agreement with Expedia Inc., in which Expedia will power the technology for Travelocity’s existing U.S. and Canadian websites, as well as provide Travelocity with access to Expedia’s supply and customer service platforms. As part of the agreement, Expedia is required to pay us a performance-based marketing fee that will vary based on the amount of travel booked through Travelocity-branded websites powered by Expedia. The marketing fee we receive is recorded as revenue and the costs we incur for marketing and that are to promote the Travelocity brand are recorded as selling, general and administrative expense in our results of operations. The revenue recognized under this model was not material to our results of operations for the year ended December 31, 2013. See Note 5, Restructuring Charges. | |||||
Merchant Revenue Model—Pursuant to this Travelocity model, which we refer to as our “Net Rate Program,” we are the merchant of record for credit card processing for travel accommodations. We primarily use this model for revenue from hotel reservations and dynamically packaged combinations. We are the merchant of record for these transactions, but we do not purchase and resell travel accommodations and do not have any obligations with respect to travel accommodations offered online that we do not sell. Instead, we act as an intermediary by entering into agreements with travel suppliers for the right to market their products, services and other content offerings at pre-determined net rates. We market net rate offerings to travelers at prices that include an amount sufficient to pay the travel supplier for providing the travel accommodations and any occupancy and other local taxes, as well as additional amounts representing our service fees. Under this revenue model, we require pre-payment by the traveler at the time of booking. | |||||
Travelocity recognizes net rate revenue for stand-alone air travel at the time the travel is booked with a reserve for estimated future canceled bookings. Vacation packages, car rentals and hotel net rate revenues are recognized at the date of consumption. | |||||
For Travelocity’s net rate and dynamically packaged combinations, we record net rate revenues based on the total amount paid by the customer for products and services, minus our payment to the travel supplier. At the time a customer makes and prepays a reservation, we accrue a supplier liability based on the amount we expect to be billed by our travel suppliers. In some cases, a portion of Travelocity’s prepaid net rate and travel package transactions goes unused by the traveler. In those circumstances, Travelocity may not be billed the full amount of the accrued supplier liability. We reduce the accrued supplier liability for amounts aged more than six months and record it as revenue if certain conditions are met. Our process for determining when aged amounts may be recognized as revenue includes consideration of key factors such as the age of the supplier liability, historical billing and payment information, among others. | |||||
Agency Revenue Model—This model is employed by Travelocity only and generates revenues via transaction fees and commissions from travel suppliers for reservations made by travelers through our websites. Under this model, we act as an agent in the transaction by passing reservations booked by travelers to the relevant airline, hotel, car rental company, cruise line or other travel supplier, while the travel supplier serves as merchant of record and processes the payment from the traveler. | |||||
Under the agency revenue model, Travelocity recognizes commission revenue for stand-alone air travel at the time the travel is booked with a reserve for estimated future canceled bookings. Commissions from car and hotel travel suppliers are recognized upon the scheduled date of travel consumption. We record car and hotel commission revenue net of an estimated reserve for cancellations, no-shows, and uncollectable commissions. As of December 31, 2013 and 2012, our reserve was approximately $2 million and $3 million, respectively. | |||||
Travelocity also generates revenues from fees for offline bookings for air and packages, which are generally booked through call center agents. These fees, net of tax recovery charges collected, are recognized as revenue at the time the related travel is booked or when the travel is canceled or changed. Travelocity also charges service fees to its customers for certain types of transactions booked through its consumer-facing websites, including processing service fees on Travelocity.com hotel bookings, as well as miscellaneous service fees including cancellation fees, credit card fees, change fees and delivery fees. These fees, net of tax recovery charges collected, are recognized as revenue at the time the related travel is booked or when the travel is canceled or changed. | |||||
Travelocity also generates insurance-related revenue from third party insurance providers whose air, total trip and cruise insurance is made available on our websites. Insurance revenue is recognized at the time the travel is booked. | |||||
Media Revenue Model—The media revenue model is used to record advertising revenue from travel suppliers and other entities that advertise their products to travelers on Travelocity’s sites and to a lesser extent, on our GDS. Advertisers use two types of advertising metrics: display advertising and action advertising. In display advertising, advertisers usually pay based on the number of customers who view the advertisement, and are charged based on cost per thousand impressions. In action advertising, advertisers usually pay based on the number of customers who perform a specific action, such as click on the advertisement, or other meaningful variable, and are charged based on the cost per action. Advertising revenues are recognized in the period that the advertising impressions are delivered or the click-through or other specific action occurs. | |||||
Advertising Costs—Advertising costs are expensed as incurred. Advertising costs expensed in the years ended December 31, 2013, 2012 and 2011 totaled approximately $153 million, $163 million and $191 million, respectively. From time to time, we enter into advertising barter transactions which are recorded based on the fair value of the advertising surrendered. For the years ended December 31, 2013, 2012 and 2011, we recognized revenue associated with advertising barter transactions of $2 million, $9 million and $16 million, respectively, and expense of $2 million, $9 million and $16 million, respectively. | |||||
Research and Development—We define research and development costs as costs incurred up to the point of technological feasibility for software developed to be sold, leased, or marketed to others. Research and development costs are expensed as incurred. We expensed approximated $6 million, $4 million and $3 million of research and development costs for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Foreign Currency Risk—We are exposed to foreign exchange rate fluctuations as we remeasure foreign currency transactions in the financial statements into the relevant functional currency. If there is a change in foreign currency exchange rates, the conversion of the foreign currency transactions into its functional currency will lead to transaction gains or losses, which are recorded in our consolidated statements of operations as a component of other, net. | |||||
We are also exposed to foreign exchange rate fluctuations as we translate the financial statements of our non-U.S. dollar functional currency foreign subsidiaries into U.S. dollars in consolidation. If there is a change in foreign currency exchange rates, the conversion of the foreign subsidiaries’ financial statements into U.S. dollars will lead to translation gains or losses, which are recorded net as a component of other comprehensive income (loss). | |||||
Statements of Cash Flows—We use the “cumulative earnings” approach for determining the cash flow presentation of distributions from our joint ventures. Distributions received on the investments are included in our consolidated statements of cash flows in operating activities, unless the cumulative distributions exceed our portion of cumulative equity in earnings of the joint venture, in which case the excess distributions are deemed to be returns of the investment and are included in our consolidated statements of cash flows in investing activities. During the periods presented, there were no distributions from joint ventures classified as investing cash flows. | |||||
Cash and Cash Equivalents—We classify all highly liquid instruments, including money market funds and money market securities with original maturities of three months or less, as cash equivalents. | |||||
Restricted Cash—Restricted cash balances relate to security provided for certain bank guarantees and banking services for specific subsidiaries in Europe within the Travelocity segment. | |||||
Financial Instruments—The carrying value of our financial instruments including cash and cash equivalents, and accounts receivable approximate their fair values. Our derivative financial instruments are carried at their estimated fair values. Our debt instruments are recorded at carrying value; the fair value of our senior unsecured notes issued in March 2006 (“2016 Notes”), our senior unsecured notes issued in May 2012 (“2019 Notes”), and term loan were determined based on quoted market prices for the identical liability when traded as an asset in an active market. | |||||
Derivatives—We recognize all derivatives, including embedded derivatives, on the consolidated balance sheets at fair value. If the derivative is designated as a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are offset against the change in fair value of the hedged item through earnings (a “fair value hedge”) or recognized in other comprehensive income until the hedged item is recognized in earnings (a “cash flow hedge”). The ineffective portion of the change in fair value of a derivative designated as a hedge is immediately recognized in earnings. For derivative instruments not designated as hedging instruments, the gain or loss resulting from the change in fair value is recognized in current earnings during the period of change. No hedging ineffectiveness was recorded in earnings during the periods presented. | |||||
Income Taxes—Deferred income tax assets and liabilities are determined based on differences between financial reporting and income tax basis of assets and liabilities and are measured using the tax rates and laws in effect at the time of such determination. We regularly review our deferred tax assets for recoverability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, we make estimates and assumptions regarding projected future taxable income, our ability to carry back operating losses to prior periods, the reversal of deferred tax liabilities and implementation of tax planning strategies. We reassess these assumptions regularly which could cause an increase or decrease to the valuation allowance resulting in an increase or decrease in the effective tax rate, and could materially impact our results of operations. | |||||
We recognize liabilities when we believe that an uncertain tax position may not be fully sustained upon examination by the tax authorities. Liabilities are recognized for uncertain tax positions that do not pass a two-step approach for recognition and measurement. First, we evaluate the tax position for recognition by determining if based solely on its technical merits, it is more likely than not to be sustained upon examination. Secondly, for positions that pass the first step, we measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. It is our policy to recognize penalties and interest accrued related to income taxes as a component of the provision (benefit) for income taxes. See Note 10, Income Taxes. | |||||
Operating Leases—We lease certain facilities under long-term, non-cancelable operating leases. Certain of our lease agreements contain renewal options and/or payment escalations based on fixed annual increases, local consumer price index changes or market rental reviews. We recognize rent expense on a straight-line basis over the term of the lease. | |||||
Property and Equipment—Property and equipment are stated at cost less accumulated depreciation, which is calculated on the straight-line basis. Our depreciation and amortization policies are as follows: | |||||
Buildings | Lesser of lease term or 35 years | ||||
Leasehold improvements | Lesser of lease term or useful life | ||||
Furniture and fixtures | 5 to 15 years | ||||
Equipment, general office and computer | 3 to 5 years | ||||
Software developed for internal use | 3 to 7 years | ||||
We also capitalize certain costs related to applications, infrastructure and graphics development for the Sabre System and our websites under authoritative guidance on internal-use software intangibles. Capitalizable costs consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software and (b) payroll and payroll-related costs for employees who are directly associated with and who devote time to the Sabre System and web-related development projects. Costs incurred during the preliminary project stage or costs incurred for data conversion activities and training, maintenance and general and administrative or overhead costs are expensed as incurred. Costs that cannot be separated between maintenance of, and relatively minor upgrades and enhancements to, internal-use software are also expensed as incurred. Depreciation and amortization for property and equipment totaled $131 million, $136 million and $123 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Property and equipment is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets used in combination to generate cash flows largely independent of other assets may not be recoverable. | |||||
Goodwill and Intangible Assets—Upon the acquisition of a business, we record goodwill and intangible assets at fair value. Additionally, we capitalize the costs incurred to renew or extend the term of our patents. Goodwill and intangible assets determined to have indefinite useful lives are not amortized. Definite-lived intangible assets are amortized on a straight-line basis and assigned useful economic lives of four to thirty years, depending on classification. The useful economic lives are evaluated on an annual basis. | |||||
We evaluate goodwill for impairment on an annual basis or if impairment indicators exist. We begin with the qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value before applying the two-step goodwill impairment model described below. If it is determined through the qualitative assessment that a reporting unit’s fair value is more likely than not greater than its carrying value, the remaining impairment steps are unnecessary. Otherwise, we perform a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned to the sum of the carrying value of the assets and liabilities of that unit. If the sum of the carrying value of the assets and liabilities of a reporting unit exceeds the estimated fair value of that reporting unit, the carrying value of the reporting unit’s goodwill is reduced to its implied fair value through an adjustment to the goodwill balance, resulting in an impairment charge. We have identified six reporting units, including Travelocity—North America, Travelocity—Europe, Travelocity—Asia Pacific, Sabre Travel Network, Sabre Airline Solutions and Sabre Hospitality Solutions. The Travelocity—Asia Pacific reporting unit was held for sale as of December 31, 2012 and was sold in March 2013 (see Note 4, Discontinued Operations and Dispositions). | |||||
The fair values used in our evaluation are estimated using a combined approach based upon discounted future cash flow projections and observed market multiples for comparable businesses. The cash flow projections are based upon a number of assumptions, including risk-adjusted discount rates, future booking and transaction volume levels, future price levels, rates of growth in our consumer and corporate direct booking businesses, rates of increase in operating expenses, cost of revenue and taxes. Additionally, in accordance with authoritative guidance on fair value measurements, we made a number of assumptions including market participants, the principal markets and highest and best use of the reporting units. | |||||
Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of definite-lived intangible assets used in combination to generate cash flows largely independent of other assets may not be recoverable. If impairment indicators exist for definite-lived intangible assets, the undiscounted future cash flows associated with the expected service potential of the assets are compared to the carrying value of the assets. If our projection of undiscounted future cash flows is in excess of the carrying value of the intangible assets, no impairment charge is recorded. If our projection of undiscounted cash flows is less than the carrying value of the intangible assets, an impairment charge is recorded to reduce the intangible assets to fair value. We also evaluate the need for additional impairment disclosures based on our Level 3 inputs. For fair value measurements categorized within Level 3 of the fair value hierarchy, we disclose the valuation processes used. | |||||
Capitalized Implementation Costs—We incur up-front costs to implement new customer contracts under our software-as-a-service revenue model. We capitalize these costs, including (a) certain external direct costs of materials and services incurred to implement a customer contract and (b) payroll and payroll related costs for employees who are directly associated with and devote time to implementation activities. | |||||
Capitalized costs are amortized on a straight-line basis over the related contract term, ranging from three to ten years, as they are recoverable through deferred or future revenues associated with the relevant contract. | |||||
Deferred Customer Discounts—Deferred advances to customers and customer discounts are amortized in future periods as the related revenue is earned. The assets are reviewed for recoverability based on future contracted revenues. Contracts are priced to generate total revenues over the life of the contract that exceed any discounts or advances provided and any upfront costs incurred to implement the customer contract. | |||||
Travel Supplier Liabilities and Related Deferred Revenue—Our travel suppliers provide content, including air travel, hotel stays, car rentals and dynamically packaged combinations of these components, on either a fee-based or a net-rate basis. Under our fee-based arrangements, we collect the full price of the travel from the consumer and remit the payment to the travel supplier, after withholding our service fee. Under our net-rate agreements, suppliers provide content to us at pre-determined net rates. We market net-rate offerings to travelers at a price that includes an amount sufficient to pay the travel supplier for providing the travel accommodations and any occupancy and other local taxes, as well as additional amounts representing our service fees. We record amounts due to travel suppliers and our service fees in Travel supplier liabilities and related deferred revenue on the consolidated balance sheets until these amounts are paid to the suppliers or recognized as revenue upon consumption of the travel. | |||||
Incentive Consideration—Certain service contracts with significant travel agency customers contain booking productivity clauses and other provisions that allow travel agency customers to receive cash payments or other consideration. We establish liabilities for these commitments and recognize the related expense as these travel agencies earn incentive consideration based on the applicable contractual terms. Periodically, we make cash payments to these travel agencies at inception or modification of a service contract which are capitalized and amortized to cost of revenue over the expected life of the service contract, which is generally three to five years. Deferred charges related to such contracts are recorded in Other assets, net on the consolidated balance sheets. The service contracts are priced so that the additional airline and other booking fees generated over the life of the contract will exceed the cost of the incentive consideration provided. Incentive consideration paid to the travel agency represents a commission paid to the travel agency for booking travel on our GDS and the amounts paid to travel agencies represent fair value for the services provided. | |||||
Equity-Based Compensation—We account for our stock awards and options by recognizing compensation expense, measured at the grant date based on the fair value of the award, on a straight-line basis over the award vesting period, giving consideration as to whether the amount of compensation cost recognized at any date is equal to the portion of grant-date value that is vested at that date. We account for our liability awards by remeasuring the fair value of our awards at each reporting date. Changes in fair value of our liability awards are recognized in earnings. Stock-based compensation expense, including liability awards, totaled $9 million, $10 million and $7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Concentration of Credit Risk—Our customers are primarily located in the United States, Canada, Europe, Latin America and Asia, and are concentrated in the travel industry. We generate a significant portion of our revenues and corresponding accounts receivable from services provided to the commercial air travel industry. As of December 31, 2013 and 2012, approximately $178 million or 58% and $189 million or 58%, respectively, of our trade accounts receivable was attributable to these customers. Our other accounts receivable are generally due from other participants in the travel and transportation industry. Substantially all of our accounts receivable, net represents trade balances. We generally do not require security or collateral from our customers as a condition of sale. | |||||
We regularly monitor the financial condition of the air transportation industry and have noted the financial difficulties faced by several air carriers. We believe the credit risk related to the air carriers’ difficulties is mitigated by the fact that we collect a significant portion of the receivables from these carriers through the Airline Clearing House (“ACH”) and other similar clearing houses. As of December 31, 2013, approximately 57% of our air customers make payments through the ACH which accounts for approximately 94% of our air revenue. For these carriers, we believe the use of ACH mitigates our credit risk with respect to airline bankruptcies. For those carriers from which we do not collect payments through the ACH or other similar clearing houses, our credit risk is higher. However, we monitor these carriers and account for the related credit risk through our normal reserve policies. | |||||
We evaluate the collectability of our accounts receivable based on a combination of factors. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations to us (e.g., bankruptcy filings, failure to pay amounts due to us or others), we record a specific reserve for bad debts against amounts due to reduce the recorded receivable to the amount we reasonably believe will be collected. For all other customers, we record reserves for bad debts based on past write-off history (average percentage of receivables written off historically) and the length of time the receivables are past due. We maintained an allowance for losses of approximately $22 million and $28 million at December 31, 2013 and 2012, respectively, based upon the amount of accounts receivable expected to prove uncollectible. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets | ||||||||||||||||||||||||||||||||
Impairment Assessments—We perform our annual assessment of possible impairment of goodwill and indefinite-lived intangible assets as of October 1, or more frequently if events and circumstances indicate that impairment may have occurred. | |||||||||||||||||||||||||||||||||
2013—In conjunction with the disposal of TBiz (part of our Travelocity North America reporting unit) and Holidays Autos (part of our Travelocity Europe reporting unit) in the second quarter of 2013, we were required to allocate goodwill to these businesses. We allocated $9 million and $36 million in goodwill to TBiz and Holiday Autos, respectively. In connection with the dispositions, we initiated an impairment analysis as of June 30, 2013 on the remainder of the goodwill and long-lived assets associated with these reporting units. Further declines in our projections of the discounted future cash flows of these reporting units and current market participant considerations led to a $96 million impairment in Travelocity—North America and a $40 million impairment in Travelocity—Europe goodwill, which has been recorded in our results of operations. As a result of these impairments, the Travelocity segment had no remaining goodwill as of June 30, 2013. | |||||||||||||||||||||||||||||||||
We also recorded a $2 million impairment of Travelocity—Europe software developed for internal use and $1 million impairment of other definite lived intangible assets related to Holiday Autos which is included in our net loss on the sale of that business in discontinued operations. | |||||||||||||||||||||||||||||||||
Based on our annual assessment of possible impairment of goodwill and indefinite-lived intangible assets as of October 1, 2013, we concluded that no additional impairment was necessary. | |||||||||||||||||||||||||||||||||
2012—In the third quarter of 2012, certain competitors of Travelocity announced plans to move towards offering hotel customers a choice of payment options which could adversely affect hotel margins over time. Travelocity’s move to this new revenue model could have additionally impacted its working capital as it would collect less cash up front, reducing the existing supplier liability over time. We therefore initiated an impairment analysis as of September 30, 2012. The expected change in the competitive business environment and the resulting impact on our projections of the discounted future cash flows led to a $58 million goodwill impairment in Travelocity—North America and a $5 million goodwill impairment in Travelocity—Europe. | |||||||||||||||||||||||||||||||||
In the fourth quarter of 2012, we continued to see further weakness in Travelocity’s business performance resulting in lower projected revenues and declining margins for Travelocity—North America and Europe thus requiring further impairment assessment as of December 31, 2012 of goodwill and long-lived intangible assets. We recorded an additional goodwill impairment charge for Travelocity Europe for $65 million and identified long-lived intangible assets were not deemed recoverable in both North America and Europe. As a result, we recorded impairments on long lived assets of $281 million for Travelocity—North America, of which $30 million pertained to software developed for internal use, $7 million pertained to computer equipment, $6 million related to capitalized implementation costs (see Note 2, Summary of Significant Accounting Policies) and the remainder related to definite-lived intangible assets. We also recorded impairments of $154 million for Travelocity—Europe, of which $11 million pertained to software developed for internal use, $4 million pertained to computer equipment and the remainder related to definite lived intangible assets. The total impairment for Travelocity in 2012 was $564 million. | |||||||||||||||||||||||||||||||||
2011—During 2011, Travelocity was impacted by weakness in the macroeconomic environment and experienced a decline in margins due to pressure in the industry driven by competitive pricing and reduced bookings which negatively impacted our projections of the discounted future cash flows. These factors led to impairment charges of $173 million for Travelocity North America and $12 million for Travelocity Europe, respectively. | |||||||||||||||||||||||||||||||||
For the purposes of performing the impairment assessment in all periods, we determined that the lowest level of identifiable cash flows is at the reporting unit level for the primary asset in the asset group being the trade name Travelocity.com and lastminute.com related to Travelocity North America and Travelocity Europe, respectively. We used an income based valuation approach at the reporting unit level to fair value the asset group and compared those estimates to the respective carrying values. The key assumptions used in determining the estimated fair value of our long lived assets were the terminal growth rates, forecasted revenues, assumed royalty rates and discount rates. Significant judgment was required to select these inputs based on observed market data. Impairments related to continuing operations are recorded in “Impairment” in the consolidated statements of operations. We believe the assumptions used to project future cash flows for the evaluations described above were reasonable. However, if future actual results do not meet our expectations, we may be required to record an additional impairment charge, the amount of which could be material to our results of operations. | |||||||||||||||||||||||||||||||||
There was no impairment charge on definitive-lived intangible assets in 2011. | |||||||||||||||||||||||||||||||||
Goodwill—Changes in the carrying amount of goodwill during the year ended December 31, 2013 and December 31, 2012 are as follows: | |||||||||||||||||||||||||||||||||
Continuing Operations | Discontinued Operations | ||||||||||||||||||||||||||||||||
Travel | Airline and | Travelocity | Total | Gross | Accumulated | Total | Total | ||||||||||||||||||||||||||
Network | Hospitality | Impairment | Goodwill | ||||||||||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 1,813,215 | $ | 285,754 | $ | 273,406 | $ | 2,372,375 | $ | 94,555 | $ | (39,573 | ) | $ | 54,982 | $ | 2,427,357 | ||||||||||||||||
Acquired | — | 39,713 | — | 39,713 | — | — | — | 39,713 | |||||||||||||||||||||||||
Adjustments(1) | (153 | ) | 22 | — | (131 | ) | 595 | — | 595 | 464 | |||||||||||||||||||||||
Impairment | — | — | (128,708 | ) | (128,708 | ) | — | — | — | (128,708 | ) | ||||||||||||||||||||||
Held for Sale | (578 | ) | — | — | (578 | ) | — | (7,420 | ) | (7,420 | ) | (7,998 | ) | ||||||||||||||||||||
Balance as of December 31, 2012 | 1,812,484 | 325,489 | 144,698 | 2,282,671 | 95,150 | (46,993 | ) | 48,157 | 2,330,828 | ||||||||||||||||||||||||
Acquired | 399 | — | — | 399 | — | — | — | 399 | |||||||||||||||||||||||||
Adjustments(1) | (197 | ) | — | — | (197 | ) | — | — | — | (197 | ) | ||||||||||||||||||||||
Impairment | — | — | (135,598 | ) | (135,598 | ) | — | — | — | (135,598 | ) | ||||||||||||||||||||||
Disposals | — | — | (9,100 | ) | (9,100 | ) | (48,157 | ) | — | (48,157 | ) | (57,257 | ) | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 1,812,686 | $ | 325,489 | $ | — | $ | 2,138,175 | $ | 46,993 | $ | (46,993 | ) | $ | — | $ | 2,138,175 | ||||||||||||||||
-1 | Includes net foreign currency effects during the year. | ||||||||||||||||||||||||||||||||
Accumulated goodwill impairment charges totaled $1,383 million and $1,247 million as of December 31, 2013 and 2012, respectively. All accumulated goodwill impairment charges are associated with Travelocity. | |||||||||||||||||||||||||||||||||
Intangible Assets—The following table presents our intangible assets at December 31, 2013 and 2012. The impairments discussed above are reflected in accumulated amortization as of December 31, 2013 and 2012. | |||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||||
Trademarks and brandnames | $ | 868,632 | $ | (545,597 | ) | $ | 323,035 | $ | 868,591 | $ | (525,358 | ) | $ | 343,233 | |||||||||||||||||||
Acquired customer relationships | 692,863 | (471,597 | ) | 221,266 | 693,863 | (407,331 | ) | 286,532 | |||||||||||||||||||||||||
Purchased technology | 468,639 | (392,013 | ) | 76,626 | 468,389 | (338,635 | ) | 129,754 | |||||||||||||||||||||||||
Non-compete agreements | 13,325 | (12,894 | ) | 431 | 13,325 | (12,390 | ) | 935 | |||||||||||||||||||||||||
Acquired contracts, supplier and distributor agreements | 26,600 | (13,400 | ) | 13,200 | 25,600 | (10,800 | ) | 14,800 | |||||||||||||||||||||||||
Total intangible assets | $ | 2,070,059 | $ | (1,435,501 | ) | $ | 634,558 | $ | 2,069,768 | $ | (1,294,514 | ) | $ | 775,254 | |||||||||||||||||||
Amortization expense relating to intangible assets subject to amortization totaled $140 million for the year ended December 31, 2013 and $159 million for each of the years ended December 31, 2012 and 2011. Estimated amortization expense related to intangible assets subject to amortization for each of the five succeeding years and beyond is as follows (in thousands): | |||||||||||||||||||||||||||||||||
2014 | $ | 104,399 | |||||||||||||||||||||||||||||||
2015 | 92,452 | ||||||||||||||||||||||||||||||||
2016 | 92,474 | ||||||||||||||||||||||||||||||||
2017 | 47,111 | ||||||||||||||||||||||||||||||||
2018 | 31,310 | ||||||||||||||||||||||||||||||||
2019 and thereafter | 266,812 | ||||||||||||||||||||||||||||||||
Total | $ | 634,558 | |||||||||||||||||||||||||||||||
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Balance Sheet Components | 8. Balance Sheet Components | ||||||||
Other Receivables, Net | |||||||||
Other receivables consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(Amounts in thousands) | |||||||||
Value added tax receivable, net | $ | 23,237 | $ | 18,795 | |||||
Federal income tax receivable | 2,024 | 16,634 | |||||||
Other | 4,250 | 6,905 | |||||||
Other receivables, net | $ | 29,511 | $ | 42,334 | |||||
Property and Equipment, Net | |||||||||
Our property and equipment consists of the following items: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(Amounts in thousands) | |||||||||
Buildings & leasehold improvements | $ | 156,086 | $ | 150,424 | |||||
Furniture, fixtures & equipment | 25,749 | 24,558 | |||||||
Computer equipment | 275,378 | 253,336 | |||||||
Software developed for internal use | 764,226 | 583,051 | |||||||
1,221,439 | 1,011,369 | ||||||||
Accumulated depreciation and amortization | (722,916 | ) | (602,973 | ) | |||||
Property and equipment, net | $ | 498,523 | $ | 408,396 | |||||
Other Assets, Net | |||||||||
Other assets consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(Amounts in thousands) | |||||||||
Capitalized implementation costs, net | $ | 175,886 | $ | 152,837 | |||||
Long-term deferred income taxes | 34,794 | 3,360 | |||||||
Deferred customer discounts | 90,476 | 47,711 | |||||||
Deferred upfront incentive consideration | 81,581 | 69,660 | |||||||
Other | 86,806 | 82,978 | |||||||
Other assets, net | $ | 469,543 | $ | 356,546 | |||||
Other Noncurrent Liabilities | |||||||||
Other noncurrent liabilities consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(Amounts in thousands) | |||||||||
Litigation settlement liability and related deferred revenue | $ | 98,311 | $ | 127,176 | |||||
Deferred revenue | 50,576 | 60,041 | |||||||
Pension and other postretirement benefits | 55,032 | 109,170 | |||||||
Other | 59,263 | 73,775 | |||||||
Other noncurrent liabilities | $ | 263,182 | $ | 370,162 | |||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | |
Stockholders' Equity | 16. Stockholders’ Equity |
Common Stock—Our authorized common stock consists of 450 million shares with a par value of $0.01 per share. As of December 31, 2013 and 2012, there were 178,633,408 and 177,911,922 shares issued, respectively, and 178,491,568 and 177,789,402 shares outstanding, respectively. No dividend or distribution can be declared or paid with respect of the common stock, and we cannot redeem, purchase, acquire, or retire for value the common stock, unless and until the full amount of unpaid dividends accrued on the Series A Preferred Stock has been paid. |
Options_and_Other_EquityBased_
Options and Other Equity-Based Awards | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Options and Other Equity-Based Awards | 17. Options and Other Equity-Based Awards | ||||||||||||||||||||||||
As of December 31, 2013, our outstanding equity based compensation plans and agreements include: | |||||||||||||||||||||||||
• | Sovereign Holdings, Inc. Management Equity Incentive Plan | ||||||||||||||||||||||||
• | TVL Common, Inc. Restricted Stock Grant Agreement | ||||||||||||||||||||||||
• | Travelocity.com LLC Stock Option Grant Agreement | ||||||||||||||||||||||||
• | Sovereign Holdings, Inc. Restricted Stock Grant Agreement | ||||||||||||||||||||||||
• | Sovereign Holdings, Inc. Stock Incentive Plan Stock Settled SARs with Respect to Travelocity Equity | ||||||||||||||||||||||||
• | Sovereign Holdings, Inc. Amended and Restated Stock Incentive Plan for Travelocity’s CEO Stock Settled SARs with Respect to Travelocity Equity | ||||||||||||||||||||||||
• | Sovereign Holdings, Inc. Restricted Stock Unit Grant Agreement | ||||||||||||||||||||||||
• | Sovereign Holdings, Inc. 2012 Management Equity Incentive Plan | ||||||||||||||||||||||||
Under these plans, the Company has granted stock options, stock appreciation rights, restricted stock and restricted stock units. Sabre Corporation was formerly Sovereign Holdings, Inc. | |||||||||||||||||||||||||
Our Plans | |||||||||||||||||||||||||
Sovereign Holdings, Inc. Management Equity Incentive Plan—Under the Sovereign Holdings, Inc. Management Equity Incentive Plan (“Sovereign MEIP”), adopted June 11, 2007, as amended in April 22, 2010, key employees and, in certain circumstances, the directors, service providers and consultants, of the Company and its affiliates may be granted stock options. Under the Sovereign MEIP: | |||||||||||||||||||||||||
• | the total number of shares of common stock of Sabre Corporation reserved and available for issuance is limited to an aggregate of 22,318,298; | ||||||||||||||||||||||||
• | the exercise price must be at least equal to the fair market value of a share of common stock of Sabre Corporation; | ||||||||||||||||||||||||
• | time-based and performance-based stock options may be granted; time-based stock options generally vest over five years (25% vests after the first anniversary of the grant date, and the remaining 75% vests ratably on a quarterly basis thereafter); performance-based options will vest upon a liquidity event, as determined by the Board, subject to achievement of certain performance measures and events as defined in the Sovereign MEIP; and | ||||||||||||||||||||||||
• | generally, a liquidity event is defined as the occurrence of (i) a transaction or series of transactions that results, directly or indirectly, in the sale, transfer or other disposition of (a) the shares of common stock of Sabre Corporation or TVL Common, Inc. held by TPG or Silver Lake (the “the Majority Stockholder”), or (b) the assets of Sabre Corporation or TVL Common, Inc. or (ii) any other transaction or series of transactions determined by the Board, in its sole discretion, to constitute a liquidity event. | ||||||||||||||||||||||||
Effective September 14, 2012, all shares available for future grants were transferred to the Sovereign Holdings, Inc. 2012 Management Equity Incentive Plan. Additionally, shares that were covered by prior awards of stock options granted under the Sovereign MEIP that were forfeited or otherwise expire unexercised or without the issuance of shares of Sabre Corporation common stock are also transferred to the Sovereign Holdings, Inc. 2012 Management Equity Incentive Plan. Therefore, as of December 31, 2013, no shares remained available for future grants under the Sovereign MEIP. | |||||||||||||||||||||||||
TVL Common, Inc. Restricted Stock Grant Agreement—In 2010, we adopted the TVL Common, Inc. Restricted Stock Grant Agreement (“TVL Common RSA”). Under the TVL Common RSA, any employee who had an outstanding grant of stock options under the Sovereign MEIP as of December 31, 2009 received a grant of restricted shares under the TVL Common RSA. Under the TVL Common RSA: | |||||||||||||||||||||||||
• | the total number of restricted shares of TVL Common, Inc. reserved and available for issuance under the TVL Common RSA is limited to 17,828,085; | ||||||||||||||||||||||||
• | the restricted shares vest on the same terms and conditions as the corresponding grant of stock options under the Sovereign MEIP, subject to the occurrence of a liquidity event (as defined above), or earlier termination of employment and achievement of certain performance measures. | ||||||||||||||||||||||||
In connection with the dividend of the noncontrolling interest in Travelocity.com LLC (see Note 2, Summary of Significant Accounting Policies) in December 2009, each holder of outstanding time-based and performance-based options under the Sovereign MEIP was granted restricted shares in TVL Common, Inc. in 2010. | |||||||||||||||||||||||||
Effective December 31, 2012, our majority shareholders approved a merger transaction in which all available and outstanding shares under the TVL Common RSA were cancelled. Therefore, as of December 31, 2012, no shares were outstanding or remained available for future grants under the TVL Common RSA. | |||||||||||||||||||||||||
Travelocity.com LLC Stock Option Grant Agreement—In 2010, pursuant to the terms of the Travelocity.com LLC limited liability company agreement (“TVL.com LLC Agreement”), we issued stock options using the Travelocity.com LLC Stock Option Grant Agreement (“TVL.com SOA”). Pursuant to the TVL.com LLC Agreement, key employees and, in certain circumstances, the directors, service providers and consultants, of the Company and its affiliates could be granted stock options to purchase common units of Travelocity.com LLC. Under the terms of the TVL.com LLC Agreement, as set forth in the TVL.com SOA: | |||||||||||||||||||||||||
• | the total number of common units of Travelocity.com LLC reserved and available for issuance is limited to an aggregate of 4,286,418; | ||||||||||||||||||||||||
• | the exercise price may not be less than the fair market value of a common unit of Travelocity.com LLC on the grant date; | ||||||||||||||||||||||||
• | the exercise price will increase quarterly at 6.0% per annum until the date of exercise; and | ||||||||||||||||||||||||
• | the options vest over five years (25% vests after the first anniversary of the grant date, the remaining 75% vests ratably on a quarterly basis thereafter). | ||||||||||||||||||||||||
At December 31, 2013, 2,801,888 options remained available for future grants pursuant to the TVL.com LLC Agreement, using the TVL.com SOA. | |||||||||||||||||||||||||
Sovereign Holdings, Inc. Restricted Stock Grant Agreement—In 2011, we granted 354,191 shares of Sabre Corporation restricted common stock as an employment inducement award, and not under any equity incentive plan adopted by the Company. The shares of Sabre Corporation restricted common stock vest ratably over three years from the date of grant, one-third on each anniversary of the grant date. | |||||||||||||||||||||||||
Sovereign Holdings, Inc. Stock Incentive Plan for Travelocity’s CEO Stock Settled SARs With Respect to Travelocity Equity; and Sovereign Holdings, Inc. Stock Incentive Plan—Stock Settled SARs with Respect to Travelocity Equity—In 2011, we adopted the Sovereign Holdings, Inc. Stock Incentive Plan for Travelocity’s CEO Stock Settled SARs With Respect to Travelocity Equity (“Travelocity Equity 2011”) and in 2012, we adopted the Sovereign Holdings, Inc. Stock Incentive Plan—Stock-Settled SARs with Respect to Travelocity Equity (“Travelocity Equity 2012”). Under the Travelocity Equity 2011 plan, Travelocity’s CEO was granted stock-settled SARs relating to Travelocity Holdings, Inc. (“THI”) common stock and Travelocity.com LLC common units. Under the Travelocity Equity 2012 plan, key employees and, in certain circumstances, directors, service providers and consultants, of the Company and its affiliates may be granted stock-settled SARs relating to THI common stock and Travelocity.com LLC common units. Under the terms of these plans: | |||||||||||||||||||||||||
• | SARs with respect to THI common stock and Travelocity.com LLC common units (collectively “Tandem SARs”) must be exercised in tandem in the same proportion of SARs granted, and may be settled, at our option, in shares of the underlying common stock and common units, interests in Sabre Corporation or any successor to Sabre Corporation, THI or Travelocity.com LLC, or in cash. | ||||||||||||||||||||||||
• | The SARs vest over four years (25% vests after the first anniversary of the grant date, the remaining 75% vests on a quarterly basis thereafter). | ||||||||||||||||||||||||
• | Generally, vested Tandem SARs are only exercisable in connection with a liquidity event and at any time thereafter prior to their expiration. | ||||||||||||||||||||||||
• | Generally, a liquidity event is defined as the occurrence of (i) a transaction or series of transactions that results, directly or indirectly, in the sale, transfer or other disposition of substantially all of the economic interest in Sabre Corporation or THI or any of its subsidiaries held by the Majority Stockholder, (ii) a change in control (as defined in the Travelocity Equity 2011 or Travelocity Equity 2012 plan, respectively), (iii) any other transaction or series of transactions determined by the Board, in its sole discretion, to constitute a liquidity event or (iv) an initial public offering of equity interests in Sabre Corporation or THI or any of its subsidiaries. | ||||||||||||||||||||||||
In 2012, the Travelocity Equity 2011 plan was amended and any outstanding Tandem SARs were cancelled and a new award of Tandem SARs was issued under the amended plan with an exercise price equal to the fair market value of THI common stock and THI common units on the date of grant. The terms of this amended plan and the vesting schedule of the new award of Tandem SARs were consistent with the original plan and the initial grant of Tandem SARs. The new award of Tandem SARs vests 25% after the first anniversary of the grant date and the remainder vests quarterly thereafter. The grant of tandem SARs is accounted for as a modification and resulted in $1 million of additional expense for the year ended December 31, 2012. | |||||||||||||||||||||||||
The total number of SARs reserved and available for issuance under the Travelocity Equity 2012 plan is limited to an aggregate of 16,565,408 shares of THI common stock and 16,565,408 Travelocity.com LLC common units. | |||||||||||||||||||||||||
At December 31, 2013, a total of 7,505,466 shares of THI common stock and 7,505,466 Travelocity.com LLC common units remained available for future grants under both plans. | |||||||||||||||||||||||||
Sovereign Holdings, Inc. Restricted Stock Unit Grant Agreement—In 2012, we granted an award of time-based RSUs to the Chief Executive Officer of Travelocity that, due to the nature of these RSUs, are accounted for as liability awards and have an aggregate fixed value of $3 million using the Sovereign Holdings, Inc. Restricted Stock Unit Grant Agreement (the Sovereign RSU Agreement”) and not under any equity incentive plan adopted by the Company. The Sovereign RSU Agreement vests as to certain fixed dollar amounts ratably each six months starting on December 15, 2012 through June 15, 2015 and is settled in shares of Sabre Corporation common stock or the prescribed cash amount. The number of shares of Sabre Corporation common stock to be delivered at each vesting date is determined by dividing these prescribed amounts by the current fair market value of Sabre Corporation common stock on each vesting date, with any residual value to be delivered in cash. As a condition to settlement of the Sovereign RSU Agreement, the Chief Executive Officer of Travelocity would forfeit up to 30% of the shares of THI and common units of Travelocity.com LLC underlying his Tandem SAR award under the Travelocity Equity 2011 plan on certain specified dates. | |||||||||||||||||||||||||
Sovereign Holdings, Inc. 2012 Management Equity Incentive Plan—Under the Sovereign Holdings, Inc. 2012 Management Equity Incentive Plan (“Sovereign 2012 MEIP”), adopted September 14, 2012, key employees and, in certain circumstances, the directors, service providers and consultants, of the Company and its affiliates may be granted stock options, restricted shares, RSUs, performance-based awards and other stock-based awards. Under the Sovereign 2012 MEIP: | |||||||||||||||||||||||||
• | the total number of shares of common stock of Sabre Corporation reserved and available for issuance is currently limited to the aggregate of 1,800,000 shares of Sabre Corporation common stock, 2,568,561 shares of Sabre Corporation common stock that were available for issuance under the Sovereign MEIP as of the effective date of the Sovereign 2012 MEIP, 2,160,000 shares were added per the Compensation Committee resolution, and, as of December 31, 2013, 4,150,967 shares that were covered by prior awards of stock options granted under the Sovereign MEIP that were forfeited or otherwise expire unexercised or without the issuance of shares of Sabre Corporation common stock; | ||||||||||||||||||||||||
• | the exercise price of any stock options granted under the Sovereign 2012 MEIP must be at least equal to the fair market value of a share of common stock of Sabre Corporation on the grant date; and | ||||||||||||||||||||||||
• | time-based options typically vest over four or five years (25% vests after the first anniversary of the grant date, the remaining 75% vests ratably on a quarterly basis thereafter); performance-based awards will vest based on achievement of certain performance measures and events as defined in the Sovereign 2012 MEIP and the grant agreement. | ||||||||||||||||||||||||
At December 31, 2013, 2,384,558 shares remained available for future grants of equity awards under the Sovereign 2012 MEIP. | |||||||||||||||||||||||||
Grants of Equity-Based Awards | |||||||||||||||||||||||||
All grants of stock options have an exercise price equal to the estimated fair market value of our common stock on the date of grant. Because we are privately held and there is no public market for our common stock, the fair market value of our common stock is determined utilizing factors such as our actual and projected financial results, valuations of the Company performed by third parties and other information obtained from public, financial and industry sources. | |||||||||||||||||||||||||
Performance-Based Stock Options—In 2008, we issued performance-based stock options under the Sovereign MEIP. The granted options shall vest and become exercisable upon the occurrence of a liquidity event which triggers certain performance measures. Because the performance condition is contingent on a liquidity event, no expense will be recognized in connection with these options until such an event is probable. | |||||||||||||||||||||||||
The fair value of the performance-based stock options granted was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, 2008 | |||||||||||||||||||||||||
Exercise price | $ | 5 | |||||||||||||||||||||||
Average risk-free interest rate | 4.15 | % | |||||||||||||||||||||||
Expected life (in years) | 6.85 | ||||||||||||||||||||||||
Implied volatility | 36.4 | % | |||||||||||||||||||||||
Weighted-average fair value | $ | 1.81 | |||||||||||||||||||||||
As of December 31, 2013, there was approximately $2 million unrecognized compensation expense that will be recognized at the time the criteria for recognition are met. Performance-based share activities for the year ended December 31, 2013 were as follows: | |||||||||||||||||||||||||
Sovereign MEIP Performance-based Stock Options | Options | Weighted-Average | |||||||||||||||||||||||
Exercise Price | |||||||||||||||||||||||||
Outstanding and Nonvested at December 31, 2012 | 776,037 | $ | 5 | ||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||
Cancelled | — | — | |||||||||||||||||||||||
Outstanding and Nonvested at December 31, 2013 | 776,037 | $ | 5 | ||||||||||||||||||||||
Time-Based Equity Awards—We issue, or have issued, time-based equity awards in the form of SARs and stock options under the Sovereign MEIP, TVL.com SOA, Travelocity Equity 2011, Travelocity Equity 2012, and the Sovereign 2012 MEIP. Generally, these awards vest over five years, or immediately upon a liquidity event, and are not exercisable more than ten years after the date of grant. | |||||||||||||||||||||||||
The fair value of the stock options granted was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: | |||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
Sovereign 2012 MEIP | |||||||||||||||||||||||||
Exercise price | $ | 11.91 | |||||||||||||||||||||||
Average risk-free interest rate | 1.53 | % | |||||||||||||||||||||||
Expected life (in years) | 6.11 | ||||||||||||||||||||||||
Implied volatility | 30.75 | % | |||||||||||||||||||||||
Weighted-average estimated fair value | $ | 3.89 | |||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||
Sovereign 2012 MEIP | TVL.com SOA | Tandem SARs(1) | Sovereign MEIP | ||||||||||||||||||||||
Exercise price | $ | 9.96 | $ | 0.12 | $ | 1.45 | $ | 8.41 | |||||||||||||||||
Average risk-free interest rate | 0.93 | % | 1.53 | % | 1.02 | % | 1.41 | % | |||||||||||||||||
Expected life (in years) | 6.44 | 6.44 | 6.11 | 6.44 | |||||||||||||||||||||
Implied volatility | 31.42 | % | 45 | % | 45.02 | % | 35.45 | % | |||||||||||||||||
Weighted-average estimated fair value | $ | 3.29 | $ | 0.04 | $ | 0.64 | $ | 3.17 | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||
TVL.com SOA | Tandem SARs(1) | Sovereign MEIP | |||||||||||||||||||||||
Exercise price | $ | 0.16 | $ | 1.74 | $ | 8.59 | |||||||||||||||||||
Average risk-free interest rate | 2.07 | % | 2.57 | % | 1.88 | % | |||||||||||||||||||
Expected life (in years) | 6.44 | 6.44 | 6.44 | ||||||||||||||||||||||
Implied volatility | 42.82 | % | 42.5 | % | 35.9 | % | |||||||||||||||||||
Weighted-average estimated fair value | $ | 0.06 | $ | 0.61 | $ | 3.36 | |||||||||||||||||||
-1 | Represents the weighted average of Tandem SARs granted under the Travelocity Equity 2011 and Travelocity Equity 2012 plans. | ||||||||||||||||||||||||
We expensed $4 million in the year ended December 31, 2013 and $7 million in each of the years ended December 31, 2012 and 2011 related to time-based stock options. As of December 31, 2013, we have approximately $21 million in unrecognized compensation expense that will be recognized over a weighted-average period of 2.0 years. Time-based share activities for the year ended December 31, 2013 were as follows: | |||||||||||||||||||||||||
Sovereign MEIP | Sovereign 2012 MEIP | ||||||||||||||||||||||||
Stock Options | Stock Options | ||||||||||||||||||||||||
Weighted-Average | Weighted-Average | ||||||||||||||||||||||||
Quantity | Exercise | Remaining | Quantity | Exercise | Remaining | ||||||||||||||||||||
Price | Contractual | Price | Contractual | ||||||||||||||||||||||
Term (years) | Term (years) | ||||||||||||||||||||||||
Outstanding at December 31, 2012 | 17,235,250 | $ | 4.84 | 5.68 | 1,505,225 | $ | 9.96 | 8.92 | |||||||||||||||||
Granted | — | — | — | 2,910,621 | 11.91 | — | |||||||||||||||||||
Exercised | (596,285 | ) | 4.92 | — | — | — | — | ||||||||||||||||||
Cancelled | (987,896 | ) | 5.14 | — | (153,500 | ) | 10.18 | — | |||||||||||||||||
Outstanding at December 31, 2013 | 15,651,069 | 4.81 | 4.66 | 4,262,346 | 11.29 | 8.18 | |||||||||||||||||||
Vested and exercisable at December 31, 2013 | 14,170,926 | $ | 4.59 | 4.63 | 485,546 | $ | 10.98 | 9.14 | |||||||||||||||||
TVL.com SOA | Travelocity Equity 2012 | ||||||||||||||||||||||||
Time-based Stock Options | Tandem SARs | ||||||||||||||||||||||||
Weighted-Average | Weighted-Average | ||||||||||||||||||||||||
Quantity | Exercise | Remaining | Quantity | Exercise | Remaining | ||||||||||||||||||||
Price | Contractual | Price | Contractual | ||||||||||||||||||||||
Term (years) | Term (years) | ||||||||||||||||||||||||
Outstanding at December 31, 2012 | 1,960,231 | $ | 0.43 | 7.59 | 21,607,122 | $ | 1.45 | 7.38 | |||||||||||||||||
Cancelled | (475,701 | ) | 0.48 | — | (3,487,238 | ) | 1.45 | — | |||||||||||||||||
Outstanding at December 31, 2013 | 1,484,530 | 0.41 | 6.66 | 18,119,884 | 1.45 | 6.38 | |||||||||||||||||||
Vested and exercisable at December 31, 2013 | 1,009,904 | $ | 0.52 | 6.56 | — | $ | — | — | |||||||||||||||||
The total intrinsic value of stock options exercised was $5 million, $4 million and $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, the aggregate intrinsic value for outstanding options under the Sovereign MEIP and Sovereign 2012 MEIP plans totaled $232 million and $34 million, respectively; and the aggregate intrinsic value for vested and exercisable options under the Sovereign MEIP and Sovereign 2012 MEIP plans totaled $213 million and $4 million, respectively. | |||||||||||||||||||||||||
In 2013 and in 2012, the Board of Directors approved modifications of Sovereign MEIP stock options held by six employees by extending the exercise period following their termination. This change was accounted for as a modification and resulted in less than $1 million of stock compensation expense in each of the years ended December 31, 2013 and 2012. There were no modifications during the year ended December 31, 2011. | |||||||||||||||||||||||||
Restricted Stock—In 2011, we granted restricted shares of Sabre Corporation’s common stock which vest ratably over three years. In the event of a dissolution or liquidation of Sabre Corporation, sale of all or substantially all of Sabre Corporation’s assets, or merger of Sabre Corporation, the Board may exchange the restricted shares of Sabre Corporation’s common stock for restricted shares of common stock in the new or surviving entity or settle in cash. | |||||||||||||||||||||||||
Restricted stock is measured based on the fair market value of the underlying stock on the date of the grant. Shares of Sabre Corporation common stock are delivered on the vesting dates with the applicable statutory tax withholding requirements to be satisfied per the terms of the Sovereign Holdings, Inc. Restricted Stock Grant Agreement. | |||||||||||||||||||||||||
For the year ended December 31, 2013, we recorded approximately $1 million in compensation expense related to the grant of restricted stock. As of December 31, 2013, we have a negligible amount in unrecognized compensation expense that will be recognized over the associated vesting periods. | |||||||||||||||||||||||||
Restricted stock activities for the year ended December 31, 2013 were as follows: | |||||||||||||||||||||||||
Sabre Corporation Restricted Stock | Quantity | Weighted-Average | |||||||||||||||||||||||
Fair Value Per | |||||||||||||||||||||||||
Award | |||||||||||||||||||||||||
Restricted stock, beginning of year | 236,127 | $ | 8.47 | ||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||
Vested | (118,063 | ) | 8.47 | ||||||||||||||||||||||
Restricted stock, end of year | 118,064 | $ | 8.47 | ||||||||||||||||||||||
Restricted Stock Units—In November 2012, the Board approved a grant of time-based RSUs with an aggregate fixed value of $3 million. The RSUs are able to be settled at the Board’s discretion in shares of our common stock or cash and are accounted for as liability awards. Expense associated with this grant of RSUs is being recognized over the associated vesting period as stock compensation expense. As of December 31, 2013, we have a negligible amount recorded in other noncurrent liabilities on our consolidated balance sheets related to these RSUs. | |||||||||||||||||||||||||
Our performance-based RSUs vest evenly over a four year period dependent upon certain company-based performance measures being achieved. On the date of grant, we determine the fair value of the performance-based awards, taking into account the probability of achieving the performance measures. Each reporting period, we re-assess the probability assumption and, if there is an adjustment, record the cumulative effect of the adjustment in the current reporting period. For the year ended December 31, 2013 we expensed $4 million in stock compensation expense related to 1,304,063 performance-based RSUs. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 19. Related Party Transactions |
On March 30, 2007, we entered into a Management Services Agreement (the “MSA”) with affiliates of TPG and Silver Lake to provide us with management services. Pursuant to the agreement, we are required to pay monitoring fees of $5 million to $7 million each year which are dependent on consolidated earnings before interest, taxes, depreciation and amortization for these services. We recognized $7 million in expense related to the annual monitoring fee for each of the years ended December 31, 2013, 2012 and 2011, respectively, in our consolidated statements of income. Additionally, we reimburse affiliates of TPG and Silver Lake for out-of-pocket expenses incurred by them or their affiliates in connection with services provided pursuant to the MSA. For the year ended December 31, 2013, these expenses were $1 million. For the years ended December 31, 2012 and 2011, these expenses were not material. In connection with the completion of an offering or sale of the company, we will be required to pay to TPG and Silver Lake, in the aggregate, a $21 million fee pursuant to the MSA and the MSA will be terminated. | |
For related party transactions with Abacus, an equity method investment, refer to Note 6, Equity Method Investments. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events |
We have evaluated subsequent events through March 10, 2014, the issuance date of our consolidated financial statements. | |
Modification to our Amended and Restated Credit Agreement—On February 20, 2014, we entered into an agreement to modify our Amended and Restated Credit Agreement. The modification reduces the Term Loan B’s applicable margin for Eurocurrency and Base rate borrowings to 3.25% and 2.25%, respectively, with a step down to 3.00% and 2.00%, respectively, if the Senior Secured Leverage Ratio is less than or equal to 3.25 to 1.00. It also reduces the Eurocurrency rate floor to 1.00% and the Base rate floor to 2.00%. The repriced Term Loan B includes a 1% Repricing Premium if we pay off or refinance all or a portion of the Term Loan B within six months of February 20, 2014. | |
In addition to repricing Term Loan B, the agreement provides for an incremental revolving commitment due February 19, 2019 of $53 million, increasing the Revolver from $352 million to $405 million. In addition, we extended the maturity date of $317 million of the Revolver to February 19, 2019. The commitments maturing February 19, 2019 include an accelerated maturity date of November 19, 2018 if, as of that date, borrowings under the Term Loan B (or permitted refinancings) remain outstanding and mature before February 18, 2020. | |
Disposition of Certain Assets of Travelocity—In February 2014, as a further step in our restructuring plans for Travelocity, we completed a sale of assets associated with TPN, a business-to-business private white label website offering. Under the agreement, certain portions of the sales proceeds received and to be received through earn-out provisions are contingent upon certain events occurring, and therefore will not be recognized in our results of operations until those contingencies have been realized. In addition, Travelocity has entered into a Transition Services Agreement with the acquirer and will be providing services to maintain the websites and certain technical and administrative functions for the acquirer until a complete transition occurs. The proceeds to be received under the sale agreement and the transition services agreement will be allocated across these multiple agreements based on a relative fair value allocation. We currently do not estimate the amount of proceeds to be recognized at the time of sale to be significant. Assets held and no longer used or assets sold to the buyer as a result of the disposition will be written off against the sales proceeds, recognized as a part of operating income, the amounts of which are not expected to be material. | |
Expedia SMA—On March 6, 2014, we amended and restated the Expedia SMA to reflect changes in certain commercial terms. As part of our negotiations to amend and restate the Expedia SMA, we also agreed to a separate Expedia Put/Call agreement that supersedes the previous put/call arrangement, whereby Expedia may acquire, or we may sell to Expedia, certain assets relating to the Travelocity business. Our put right may be exercised during the first 24 months of the Expedia Put/Call only upon the occurrence of certain triggering events primarily relating to implementation, which are outside of our control. The occurrence of such events is not considered probable. During this period, the amount of the put right is fixed. After the 24 month period, the put right is only exercisable for a limited period of time in 2016 and 2017 at a discount to fair market value. The call right held by Expedia is exercisable at any time during the term of the Expedia Put/Call. If the call right is exercised, although we expect the amount paid will be fair value, the call right provides for a floor for a limited time that may be higher than fair value and a ceiling for the duration of the Expedia Put/Call that may be lower than fair value. | |
The term of the amended and restated Expedia SMA is nine years and automatically renews under certain conditions. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SABRE CORPORATION | ||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
DECEMBER 31, 2013, 2012 AND 2011 | |||||||||||||||||
(In Millions) | |||||||||||||||||
Balance at | Charged to | Write-offs and | Balance at | ||||||||||||||
Beginning | Expense or | Other Adjustments | End of Period | ||||||||||||||
of Period | Other Accounts | ||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
Year ended December 31, 2013 | $ | 31.4 | $ | 7.1 | $ | (12.6 | ) | $ | 25.9 | ||||||||
Year ended December 31, 2012 | $ | 36.5 | $ | 4.8 | $ | (9.9 | ) | $ | 31.4 | ||||||||
Year ended December 31, 2011 | $ | 37.1 | $ | 8.7 | $ | (9.3 | ) | $ | 36.5 | ||||||||
Valuation Allowance for Deferred Tax Assets | |||||||||||||||||
Year ended December 31, 2013 | $ | 282.1 | $ | (32.6 | ) | $ | 3.6 | $ | 253.1 | ||||||||
Year ended December 31, 2012 | $ | 227.4 | $ | 65.1 | $ | (10.4 | ) | $ | 282.1 | ||||||||
Year ended December 31, 2011 | $ | 236.4 | $ | (6.5 | ) | $ | (2.5 | ) | $ | 227.4 | |||||||
Reserve for Value-Added Tax Receivables | |||||||||||||||||
Year ended December 31, 2013 | $ | 36.7 | $ | (32.6 | ) | $ | (0.2 | ) | $ | 3.9 | |||||||
Year ended December 31, 2012 | $ | 40.4 | $ | (3.3 | ) | $ | (0.4 | ) | $ | 36.7 | |||||||
Year ended December 31, 2011 | $ | 43.2 | $ | (1.3 | ) | $ | (1.5 | ) | $ | 40.4 |
General_Information_Policies
General Information (Policies) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ||||||
Initial Public Offering and Share Based Compensation | Initial Public Offering and Share-based Compensation—On April 23, 2014, we closed our initial public offering of our common stock in which we sold 39,200,000 shares, and on April 25, 2014, the underwriters exercised in full their overallotment option which resulted in the sale of an additional 5,880,000 shares of our common stock. Our shares of common stock were sold at an initial public offering price of $16.00 per share, which generated $672 million of net proceeds from the offering after deducting underwriting discounts and commissions and offering expenses. Upon closing of our initial public offering, we redeemed all of our outstanding shares of Series A Cumulative Preferred Stock in exchange for 40,343,529 shares of our common stock. | |||||
We used the net proceeds from this offering to repay (i) $296 million aggregate principal amount of our term loans and (ii) $320 million aggregate principal amount of our senior secured notes due in 2019 at a redemption price of 108.5% of the principal amount, which represents the maximum amount of the contingent call option exercisable in the event of an equity offering (see Note 8, Debt). The term loan prepayment occurred in two installments: the first prepayment of $207 million occurred on April 24, 2014 and the second prepayment of $90 million occurred on April 29, 2014. The redemption of $320 million of our senior secured notes due in 2019 occurred on May 7, 2014. We also used the net proceeds from our offering to pay the $27 million redemption premium and $13 million in accrued but unpaid interest on the senior secured notes due in 2019. We used the remaining portion of the net proceeds from our offering to pay a $21 million fee, in the aggregate, to TPG Global, LLC (“TPG”) and Silver Lake Management Company (“Silver Lake”) pursuant to a management services agreement (the “MSA”), which was thereafter terminated. | ||||||
On March 20, 2014, our board of directors adopted the Sabre Corporation 2014 Omnibus Incentive Compensation Plan (the “2014 Omnibus Plan”), which permits the grant of cash and equity and equity-based incentive awards. Our employees and the non-employee members of our board of directors and those of our subsidiaries are eligible to receive awards under the 2014 Omnibus Plan. On the effective date of our initial public offering, under the 2014 Omnibus Plan, we granted time-based options to purchase 1,541,627 shares of common stock at an exercise price of $16.68 per share and a total of 2,298,478 shares of performance-based and time-based restricted stock units. | ||||||
In April 2014, we cancelled all outstanding stock-based awards issued under the Travelocity.com LLC Stock Option Grant Agreements, the Travelocity Equity 2012 Plan and the Sovereign Holdings, Inc. Amended and Restated Stock Incentive Plan for Travelocity’s CEO—Stock Settled SARs with Respect to Travelocity Equity, terminated all related plans and award agreements, and recorded stock compensation expense of $7 million, representing the remaining unrecognized compensation expense of the awards at the cancellation date. | ||||||
Basis of Presentation | Basis of Presentation—The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of results that may be expected for any other interim period or for the year ended December 31, 2014. The accompanying interim financial statements should be read in conjunction with our annual audited financial statements and related notes thereto for the year ended December 31, 2013 included in our prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act on April 17, 2014. | Basis of Presentation—The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). We consolidate all of our majority-owned subsidiaries and companies over which we exercise control through majority voting rights. Other than as discussed in the following paragraphs, no other entities are currently consolidated due to control through operating agreements, financing agreements, or as the primary beneficiary of a variable interest entity. The consolidated financial statements include our accounts after elimination of all significant intercompany balances and transactions. All dollar amounts in the financial statements and the tables in the notes, except per-share amounts, are stated in thousands of U.S. dollars unless otherwise indicated. All amounts in the notes reference results from continuing operations unless otherwise indicated. | ||||
We consolidate all of our majority-owned subsidiaries and companies over which we exercise control through majority voting rights. No entities are currently consolidated due to control through operating agreements, financing agreements, or as the primary beneficiary of a variable interest entity. | In December 2009, our wholly-owned subsidiary Travelocity.com Inc. was converted into Travelocity.com LLC, a Delaware limited liability company, pursuant to Delaware law, and the capital structure of Travelocity.com LLC was split into common and preferred units. On December 31, 2009, 95% of the common units of Travelocity.com LLC were distributed as a dividend to a newly-formed Delaware corporation, TVL Common, Inc., which is owned by the holders of record of Sabre Corporation’s preferred stock. We retained the remaining 5% of the common units and 100% of the preferred units. On December 31, 2012, we implemented a series of transactions which resulted in the merger of TVL Common, Inc. back into our capital structure. The owners of 95% of the common units of TVL Common, Inc. received shares of Sabre Corporation in exchange. For so long as any preferred units remained outstanding, the holder(s) of the preferred units had full voting rights and control of Travelocity.com LLC and the holder(s) of common units had no voting rights or control. As such, we, as the holder of all of the preferred units, consolidated the results of Travelocity.com LLC and presented a noncontrolling interest for the portion of the common units distributed through the dividend. Profits and losses were allocated in accordance with the limited liability company agreement and securities held by each party. This merger was a reacquisition of a noncontrolling interest from an entity under common control and has been recorded as an equity transaction. | |||||
The consolidated financial statements include our accounts after elimination of all significant intercompany balances and transactions. | ||||||
Use of Estimates | Use of Estimates—The preparation of these interim financial statements in conformity with GAAP requires that certain amounts be recorded based on estimates and assumptions made by management. Actual results could differ from these estimates and assumptions. Our accounting policies, which include significant estimates and assumptions, include, among other things, estimation of the collectability of accounts receivable, amounts for future cancellations of bookings processed through the Sabre global distribution system (“GDS”), revenue recognition for software development, determination of the fair value of assets and liabilities acquired in a business combination, determination of the fair value of derivatives, the evaluation of the recoverability of the carrying value of intangible assets and goodwill, assumptions utilized in the determination of pension and other postretirement benefit liabilities, assumptions made in the calculation of restructuring liabilities and the evaluation of uncertainties surrounding the calculation of our tax assets and liabilities. These policies are discussed in our annual audited consolidated financial statements and related notes thereto for the year ended December 31, 2013 included in our prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act on April 17, 2014. | Use of Estimates—The preparation of these financial statements in conformity with GAAP requires that certain amounts be recorded based on estimates and assumptions made by management. Actual results could differ from these estimates and assumptions. Our accounting policies, which include significant estimates and assumptions, include, among other things, estimation of the collectability of accounts receivable, amounts for future cancellations of bookings processed through the Sabre global distribution system (“GDS”), revenue recognition for software development, determination of the fair value of assets and liabilities acquired in a business combination, determination of the fair value of derivatives, the evaluation of the recoverability of the carrying value of intangible assets and goodwill, assumptions utilized in the determination of pension and other postretirement benefit liabilities, determination of the fair value of our litigation settlement payable, assumptions made in the calculation of restructuring liabilities and the evaluation of uncertainties surrounding the calculation of our tax assets and liabilities. These policies are discussed in greater detail below. | ||||
Equity Method Investments | Equity Method Investments—We utilize the equity method to account for our interests in joint ventures and investments in stock of other companies that we do not control but over which we exert significant influence. Investments in the common stock of other companies over which we do not exert significant influence are accounted for at cost. We periodically evaluate equity and debt investments in entities accounted for at cost or under the equity method for impairment by reviewing updated financial information provided by the investee, including valuation information from new financing transactions by the investee and information relating to competitors of investees when available. If we determine that a cost method investment is other than temporarily impaired, the carrying value of the investment is reduced to its estimated fair value through earnings. For the year ended December 31, 2012, joint venture equity income included a $24 million impairment of goodwill recorded by one of our investees. For the years ended December 31, 2013, 2012 and 2011, impairments of investments carried at cost were not material to our results of operations. | |||||
The following table displays the name of each of those investees that we do not control but over which we exert significant influence, and our voting interest in their stock held at December 31, 2013: | ||||||
Joint Venture | Voting | |||||
Interest | ||||||
Auto Holidays (Pty) Limited (South Africa) | 50 | % | ||||
ESS Elektroniczne Systemy Spzedazy Sp. zo.o | 40 | % | ||||
ABACUS International PTE Ltd | 35 | % | ||||
Sabre Bulgaria AD | 20 | % | ||||
Our investments in joint ventures on the consolidated balance sheets includes $93 million and $97 million, as of December 31, 2013 and 2012, respectively, of excess basis over our underlying equity in joint ventures. This differential represents goodwill in addition to identifiable intangible assets which are being amortized to joint venture intangible amortization over their estimated lives. | ||||||
Reclassifications | Reclassifications—Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the 2013 presentation. Other than as described below, these reclassifications are not material, either individually or in the aggregate, to our consolidated financial statements. | |||||
In 2013, we have removed the presentation of gross margin from our consolidated statement of operations. Additionally, we have reclassified depreciation and amortization from a single line in our consolidated statement of operations to be reflected as a part of cost of revenues or selling, general and administrative expenses based on the nature of the expense. The impact to cost of revenue and selling, general and administrative, considering the impact of discontinued operations, for the year ended December 31, 2012 was an increase to cost of revenue of $198 million and an increase to selling, general and administrative of $118 million. The impact for the year ended December 31, 2011 was an increase to cost of revenue of $173 million and an increase to selling, general and administrative of $120 million. The amount of depreciation and amortization reclassified to discontinued operations was $2 million for each of the years ended December 31, 2012 and 2011. | ||||||
In addition, certain amounts previously reported in our December 31, 2012 and 2011 financial statements have been reclassified to conform to December 31, 2013 presentation, as a result of discontinued operations. See Note 4, Discontinued Operations and Dispositions. | ||||||
Revenue Recognition | Revenue Recognition—We employ a number of revenue models across our businesses, depending on the dynamics of the industry segment and the technology on which the revenue is based. Some revenue models are used in multiple businesses. Travel Network primarily employs the transaction revenue model. Airline and Hospitality Solutions primarily employs the SaaS and hosted and consulting revenue models, as well as the software licensing fee model to a lesser extent. Travelocity has primarily employed two revenue models: the merchant model, which we refer to as our “Net Rate Program,” under which we recognize a majority of our hotel revenues, and the agency model, under which we recognize most of our airline, car and cruise revenues and a small portion of hotel revenues. Beginning in the fourth quarter of 2013, Travelocity in the U.S. and Canada began shifting to the marketing fee revenue model while Travelocity—Europe continues to primarily employ the merchant model and agency model. Both Travel Network and Travelocity derive some of their revenues from the media model, earning advertising revenues from travel suppliers and other entities that advertise their products to travelers and travel agencies using our networks. We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. | |||||
Transaction Revenue Model—This model accounts for substantially all of Travel Network’s revenues. We define a direct billable booking as any booking that generates a fee directly to Travel Network. Transaction fees include, but are not limited to, transaction fees paid by travel suppliers for selling their inventory through the Sabre GDS and transaction fees paid by travel agency subscribers related to their use of the Sabre GDS. | ||||||
Pursuant to this model, a transaction occurs when a travel agency or corporate travel department books, or reserves, a travel supplier’s product on the Sabre GDS. We receive revenue from a travel supplier, travel agency, or corporate travel department depending upon the commercial arrangement represented in each of their contracts. | ||||||
Transaction revenue for airline travel reservations is recognized at the time of the booking of the reservation, net of estimated future cancellations. Our transaction fee cancellation reserve was $8 million at December 31, 2013 and 2012. Transaction revenue for car rental, hotel bookings and other travel providers is recognized at the time the reservation is used by the customer. | ||||||
Software-as-a-Service and Hosted Revenue Model—SaaS and hosted is the primary revenue model employed by Airline and Hospitality Solutions. In this revenue model, we host software solutions on our own secure platforms, or deploy it through our SaaS solutions and we maintain the software as well as the infrastructure it employs. Our customers, which include airlines, airports and hotel companies, pay us an implementation fee and a recurring usage-based fee for the use of the software pursuant to contracts with terms that typically range between three and ten years and generally include minimum annual volume requirements. This usage-based fee arrangement allows our customers to pay for software normally on a monthly basis, to the extent that it is used. Similar contracts with the same customer which are entered into at or around the same period are analyzed for revenue recognition purposes on a combined basis. Revenue from implementation fees is generally recognized over the term of the agreement. The amount of periodic usage fees is typically based on a metric relevant to the software’s purpose. We recognize revenue from recurring usage-based fees in the period earned, which typically fluctuates based on a real-time metric, such as the actual number of passengers boarded or the actual number of hotel bookings made in a given month. | ||||||
Consulting Revenue Model—Our SaaS and hosted offerings can be sold as part of multiple-element agreements for which we also provide consulting services. Our consulting services are primarily focused on helping customers achieve better utilization of and return on their software investment. Often we provide consulting services during the implementation phase of our SaaS solutions. In such cases, we account for consulting service revenue separately from implementation and recurring usage-based fees, with value assigned to each element based on its relative selling price to the total selling price. We perform a market analysis on a periodic basis to determine the range of selling prices for each product and service. Estimated selling prices are set for each product and service delivered to customers. The revenue for consulting services is generally recognized over the period the services are performed. | ||||||
Software Licensing Fee Revenue Model—The software licensing fee revenue model is utilized by Airline and Hospitality Solutions. Under this model, we generate revenue by charging customers for the installation and use of our software products. Some contracts under this model generate additional revenue for the maintenance of the software product. When software is sold without associated customization or implementation services, revenue from software licensing fees is recognized when all of the following are met: (i) the software is delivered, (ii) fees are fixed or determinable, (iii) no undelivered elements are essential to the functionality of delivered software, and (iv) collection is probable. When software is sold with customization or implementation services, revenue from software licensing fees is recognized based on the percentage of completion of the customization and implementation services. Fees for software maintenance are recognized ratably over the life of the contract. We are unable to determine vendor-specific objective evidence of fair value for software maintenance fees. Therefore, when fees for software maintenance are included in software license agreements, revenue from the software license, customization, implementation and the maintenance are recognized ratably over the related contract term. | ||||||
Marketing Fee Revenue Model—In the third quarter of 2013, we initiated plans to shift Travelocity in the U.S. and Canada away from a fixed-cost model to a lower-cost, performance based shared revenue structure. We entered into an exclusive, long-term strategic marketing agreement with Expedia Inc., in which Expedia will power the technology for Travelocity’s existing U.S. and Canadian websites, as well as provide Travelocity with access to Expedia’s supply and customer service platforms. As part of the agreement, Expedia is required to pay us a performance-based marketing fee that will vary based on the amount of travel booked through Travelocity-branded websites powered by Expedia. The marketing fee we receive is recorded as revenue and the costs we incur for marketing and that are to promote the Travelocity brand are recorded as selling, general and administrative expense in our results of operations. The revenue recognized under this model was not material to our results of operations for the year ended December 31, 2013. See Note 5, Restructuring Charges. | ||||||
Merchant Revenue Model—Pursuant to this Travelocity model, which we refer to as our “Net Rate Program,” we are the merchant of record for credit card processing for travel accommodations. We primarily use this model for revenue from hotel reservations and dynamically packaged combinations. We are the merchant of record for these transactions, but we do not purchase and resell travel accommodations and do not have any obligations with respect to travel accommodations offered online that we do not sell. Instead, we act as an intermediary by entering into agreements with travel suppliers for the right to market their products, services and other content offerings at pre-determined net rates. We market net rate offerings to travelers at prices that include an amount sufficient to pay the travel supplier for providing the travel accommodations and any occupancy and other local taxes, as well as additional amounts representing our service fees. Under this revenue model, we require pre-payment by the traveler at the time of booking. | ||||||
Travelocity recognizes net rate revenue for stand-alone air travel at the time the travel is booked with a reserve for estimated future canceled bookings. Vacation packages, car rentals and hotel net rate revenues are recognized at the date of consumption. | ||||||
For Travelocity’s net rate and dynamically packaged combinations, we record net rate revenues based on the total amount paid by the customer for products and services, minus our payment to the travel supplier. At the time a customer makes and prepays a reservation, we accrue a supplier liability based on the amount we expect to be billed by our travel suppliers. In some cases, a portion of Travelocity’s prepaid net rate and travel package transactions goes unused by the traveler. In those circumstances, Travelocity may not be billed the full amount of the accrued supplier liability. We reduce the accrued supplier liability for amounts aged more than six months and record it as revenue if certain conditions are met. Our process for determining when aged amounts may be recognized as revenue includes consideration of key factors such as the age of the supplier liability, historical billing and payment information, among others. | ||||||
Agency Revenue Model—This model is employed by Travelocity only and generates revenues via transaction fees and commissions from travel suppliers for reservations made by travelers through our websites. Under this model, we act as an agent in the transaction by passing reservations booked by travelers to the relevant airline, hotel, car rental company, cruise line or other travel supplier, while the travel supplier serves as merchant of record and processes the payment from the traveler. | ||||||
Under the agency revenue model, Travelocity recognizes commission revenue for stand-alone air travel at the time the travel is booked with a reserve for estimated future canceled bookings. Commissions from car and hotel travel suppliers are recognized upon the scheduled date of travel consumption. We record car and hotel commission revenue net of an estimated reserve for cancellations, no-shows, and uncollectable commissions. As of December 31, 2013 and 2012, our reserve was approximately $2 million and $3 million, respectively. | ||||||
Travelocity also generates revenues from fees for offline bookings for air and packages, which are generally booked through call center agents. These fees, net of tax recovery charges collected, are recognized as revenue at the time the related travel is booked or when the travel is canceled or changed. Travelocity also charges service fees to its customers for certain types of transactions booked through its consumer-facing websites, including processing service fees on Travelocity.com hotel bookings, as well as miscellaneous service fees including cancellation fees, credit card fees, change fees and delivery fees. These fees, net of tax recovery charges collected, are recognized as revenue at the time the related travel is booked or when the travel is canceled or changed. | ||||||
Travelocity also generates insurance-related revenue from third party insurance providers whose air, total trip and cruise insurance is made available on our websites. Insurance revenue is recognized at the time the travel is booked. | ||||||
Media Revenue Model—The media revenue model is used to record advertising revenue from travel suppliers and other entities that advertise their products to travelers on Travelocity’s sites and to a lesser extent, on our GDS. Advertisers use two types of advertising metrics: display advertising and action advertising. In display advertising, advertisers usually pay based on the number of customers who view the advertisement, and are charged based on cost per thousand impressions. In action advertising, advertisers usually pay based on the number of customers who perform a specific action, such as click on the advertisement, or other meaningful variable, and are charged based on the cost per action. Advertising revenues are recognized in the period that the advertising impressions are delivered or the click-through or other specific action occurs. | ||||||
Advertising Costs | Advertising Costs—Advertising costs are expensed as incurred. Advertising costs expensed in the years ended December 31, 2013, 2012 and 2011 totaled approximately $153 million, $163 million and $191 million, respectively. From time to time, we enter into advertising barter transactions which are recorded based on the fair value of the advertising surrendered. For the years ended December 31, 2013, 2012 and 2011, we recognized revenue associated with advertising barter transactions of $2 million, $9 million and $16 million, respectively, and expense of $2 million, $9 million and $16 million, respectively. | |||||
Research and Development | Research and Development—We define research and development costs as costs incurred up to the point of technological feasibility for software developed to be sold, leased, or marketed to others. Research and development costs are expensed as incurred. We expensed approximated $6 million, $4 million and $3 million of research and development costs for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Foreign Currency Risk | Foreign Currency Risk—We are exposed to foreign exchange rate fluctuations as we remeasure foreign currency transactions in the financial statements into the relevant functional currency. If there is a change in foreign currency exchange rates, the conversion of the foreign currency transactions into its functional currency will lead to transaction gains or losses, which are recorded in our consolidated statements of operations as a component of other, net. | |||||
We are also exposed to foreign exchange rate fluctuations as we translate the financial statements of our non-U.S. dollar functional currency foreign subsidiaries into U.S. dollars in consolidation. If there is a change in foreign currency exchange rates, the conversion of the foreign subsidiaries’ financial statements into U.S. dollars will lead to translation gains or losses, which are recorded net as a component of other comprehensive income (loss). | ||||||
Statements of Cash Flows | Statements of Cash Flows—We use the “cumulative earnings” approach for determining the cash flow presentation of distributions from our joint ventures. Distributions received on the investments are included in our consolidated statements of cash flows in operating activities, unless the cumulative distributions exceed our portion of cumulative equity in earnings of the joint venture, in which case the excess distributions are deemed to be returns of the investment and are included in our consolidated statements of cash flows in investing activities. During the periods presented, there were no distributions from joint ventures classified as investing cash flows. | |||||
Cash and Cash Equivalents | Cash and Cash Equivalents—We classify all highly liquid instruments, including money market funds and money market securities with original maturities of three months or less, as cash equivalents. | |||||
Restricted Cash | Restricted Cash—Restricted cash balances relate to security provided for certain bank guarantees and banking services for specific subsidiaries in Europe within the Travelocity segment. | |||||
Financial Instruments | Financial Instruments—The carrying value of our financial instruments including cash and cash equivalents, and accounts receivable approximate their fair values. Our derivative financial instruments are carried at their estimated fair values. Our debt instruments are recorded at carrying value; the fair value of our senior unsecured notes issued in March 2006 (“2016 Notes”), our senior unsecured notes issued in May 2012 (“2019 Notes”), and term loan were determined based on quoted market prices for the identical liability when traded as an asset in an active market. | |||||
Derivatives | Derivatives—We recognize all derivatives, including embedded derivatives, on the consolidated balance sheets at fair value. If the derivative is designated as a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are offset against the change in fair value of the hedged item through earnings (a “fair value hedge”) or recognized in other comprehensive income until the hedged item is recognized in earnings (a “cash flow hedge”). The ineffective portion of the change in fair value of a derivative designated as a hedge is immediately recognized in earnings. For derivative instruments not designated as hedging instruments, the gain or loss resulting from the change in fair value is recognized in current earnings during the period of change. No hedging ineffectiveness was recorded in earnings during the periods presented. | |||||
Income Taxes | Income Taxes—Deferred income tax assets and liabilities are determined based on differences between financial reporting and income tax basis of assets and liabilities and are measured using the tax rates and laws in effect at the time of such determination. We regularly review our deferred tax assets for recoverability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, we make estimates and assumptions regarding projected future taxable income, our ability to carry back operating losses to prior periods, the reversal of deferred tax liabilities and implementation of tax planning strategies. We reassess these assumptions regularly which could cause an increase or decrease to the valuation allowance resulting in an increase or decrease in the effective tax rate, and could materially impact our results of operations. | |||||
We recognize liabilities when we believe that an uncertain tax position may not be fully sustained upon examination by the tax authorities. Liabilities are recognized for uncertain tax positions that do not pass a two-step approach for recognition and measurement. First, we evaluate the tax position for recognition by determining if based solely on its technical merits, it is more likely than not to be sustained upon examination. Secondly, for positions that pass the first step, we measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. It is our policy to recognize penalties and interest accrued related to income taxes as a component of the provision (benefit) for income taxes. See Note 10, Income Taxes. | ||||||
Operating Leases | Operating Leases—We lease certain facilities under long-term, non-cancelable operating leases. Certain of our lease agreements contain renewal options and/or payment escalations based on fixed annual increases, local consumer price index changes or market rental reviews. We recognize rent expense on a straight-line basis over the term of the lease. | |||||
Property and Equipment | Property and Equipment—Property and equipment are stated at cost less accumulated depreciation, which is calculated on the straight-line basis. Our depreciation and amortization policies are as follows: | |||||
Buildings | Lesser of lease term or 35 years | |||||
Leasehold improvements | Lesser of lease term or useful life | |||||
Furniture and fixtures | 5 to 15 years | |||||
Equipment, general office and computer | 3 to 5 years | |||||
Software developed for internal use | 3 to 7 years | |||||
We also capitalize certain costs related to applications, infrastructure and graphics development for the Sabre System and our websites under authoritative guidance on internal-use software intangibles. Capitalizable costs consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software and (b) payroll and payroll-related costs for employees who are directly associated with and who devote time to the Sabre System and web-related development projects. Costs incurred during the preliminary project stage or costs incurred for data conversion activities and training, maintenance and general and administrative or overhead costs are expensed as incurred. Costs that cannot be separated between maintenance of, and relatively minor upgrades and enhancements to, internal-use software are also expensed as incurred. Depreciation and amortization for property and equipment totaled $131 million, $136 million and $123 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||
Property and equipment is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets used in combination to generate cash flows largely independent of other assets may not be recoverable. | ||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets—Upon the acquisition of a business, we record goodwill and intangible assets at fair value. Additionally, we capitalize the costs incurred to renew or extend the term of our patents. Goodwill and intangible assets determined to have indefinite useful lives are not amortized. Definite-lived intangible assets are amortized on a straight-line basis and assigned useful economic lives of four to thirty years, depending on classification. The useful economic lives are evaluated on an annual basis. | |||||
We evaluate goodwill for impairment on an annual basis or if impairment indicators exist. We begin with the qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value before applying the two-step goodwill impairment model described below. If it is determined through the qualitative assessment that a reporting unit’s fair value is more likely than not greater than its carrying value, the remaining impairment steps are unnecessary. Otherwise, we perform a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned to the sum of the carrying value of the assets and liabilities of that unit. If the sum of the carrying value of the assets and liabilities of a reporting unit exceeds the estimated fair value of that reporting unit, the carrying value of the reporting unit’s goodwill is reduced to its implied fair value through an adjustment to the goodwill balance, resulting in an impairment charge. We have identified six reporting units, including Travelocity—North America, Travelocity—Europe, Travelocity—Asia Pacific, Sabre Travel Network, Sabre Airline Solutions and Sabre Hospitality Solutions. The Travelocity—Asia Pacific reporting unit was held for sale as of December 31, 2012 and was sold in March 2013 (see Note 4, Discontinued Operations and Dispositions). | ||||||
The fair values used in our evaluation are estimated using a combined approach based upon discounted future cash flow projections and observed market multiples for comparable businesses. The cash flow projections are based upon a number of assumptions, including risk-adjusted discount rates, future booking and transaction volume levels, future price levels, rates of growth in our consumer and corporate direct booking businesses, rates of increase in operating expenses, cost of revenue and taxes. Additionally, in accordance with authoritative guidance on fair value measurements, we made a number of assumptions including market participants, the principal markets and highest and best use of the reporting units. | ||||||
Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of definite-lived intangible assets used in combination to generate cash flows largely independent of other assets may not be recoverable. If impairment indicators exist for definite-lived intangible assets, the undiscounted future cash flows associated with the expected service potential of the assets are compared to the carrying value of the assets. If our projection of undiscounted future cash flows is in excess of the carrying value of the intangible assets, no impairment charge is recorded. If our projection of undiscounted cash flows is less than the carrying value of the intangible assets, an impairment charge is recorded to reduce the intangible assets to fair value. We also evaluate the need for additional impairment disclosures based on our Level 3 inputs. For fair value measurements categorized within Level 3 of the fair value hierarchy, we disclose the valuation processes used. | ||||||
Capitalized Implementation Costs | Capitalized Implementation Costs—We incur up-front costs to implement new customer contracts under our software-as-a-service revenue model. We capitalize these costs, including (a) certain external direct costs of materials and services incurred to implement a customer contract and (b) payroll and payroll related costs for employees who are directly associated with and devote time to implementation activities. | |||||
Capitalized costs are amortized on a straight-line basis over the related contract term, ranging from three to ten years, as they are recoverable through deferred or future revenues associated with the relevant contract. | ||||||
Deferred Customer Discounts | Deferred Customer Discounts—Deferred advances to customers and customer discounts are amortized in future periods as the related revenue is earned. The assets are reviewed for recoverability based on future contracted revenues. Contracts are priced to generate total revenues over the life of the contract that exceed any discounts or advances provided and any upfront costs incurred to implement the customer contract. | |||||
Travel Supplier Liabilities and Related Deferred Revenue | Travel Supplier Liabilities and Related Deferred Revenue—Our travel suppliers provide content, including air travel, hotel stays, car rentals and dynamically packaged combinations of these components, on either a fee-based or a net-rate basis. Under our fee-based arrangements, we collect the full price of the travel from the consumer and remit the payment to the travel supplier, after withholding our service fee. Under our net-rate agreements, suppliers provide content to us at pre-determined net rates. We market net-rate offerings to travelers at a price that includes an amount sufficient to pay the travel supplier for providing the travel accommodations and any occupancy and other local taxes, as well as additional amounts representing our service fees. We record amounts due to travel suppliers and our service fees in Travel supplier liabilities and related deferred revenue on the consolidated balance sheets until these amounts are paid to the suppliers or recognized as revenue upon consumption of the travel. | |||||
Incentive Consideration | Incentive Consideration—Certain service contracts with significant travel agency customers contain booking productivity clauses and other provisions that allow travel agency customers to receive cash payments or other consideration. We establish liabilities for these commitments and recognize the related expense as these travel agencies earn incentive consideration based on the applicable contractual terms. Periodically, we make cash payments to these travel agencies at inception or modification of a service contract which are capitalized and amortized to cost of revenue over the expected life of the service contract, which is generally three to five years. Deferred charges related to such contracts are recorded in Other assets, net on the consolidated balance sheets. The service contracts are priced so that the additional airline and other booking fees generated over the life of the contract will exceed the cost of the incentive consideration provided. Incentive consideration paid to the travel agency represents a commission paid to the travel agency for booking travel on our GDS and the amounts paid to travel agencies represent fair value for the services provided. | |||||
Equity-Based Compensation | Equity-Based Compensation—We account for our stock awards and options by recognizing compensation expense, measured at the grant date based on the fair value of the award, on a straight-line basis over the award vesting period, giving consideration as to whether the amount of compensation cost recognized at any date is equal to the portion of grant-date value that is vested at that date. We account for our liability awards by remeasuring the fair value of our awards at each reporting date. Changes in fair value of our liability awards are recognized in earnings. Stock-based compensation expense, including liability awards, totaled $9 million, $10 million and $7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Concentration of Credit Risk | Concentration of Credit Risk—Our customers are primarily located in the United States, Canada, Europe, Latin America and Asia, and are concentrated in the travel industry. We generate a significant portion of our revenues and corresponding accounts receivable from services provided to the commercial air travel industry. As of December 31, 2013 and 2012, approximately $178 million or 58% and $189 million or 58%, respectively, of our trade accounts receivable was attributable to these customers. Our other accounts receivable are generally due from other participants in the travel and transportation industry. Substantially all of our accounts receivable, net represents trade balances. We generally do not require security or collateral from our customers as a condition of sale. | |||||
We regularly monitor the financial condition of the air transportation industry and have noted the financial difficulties faced by several air carriers. We believe the credit risk related to the air carriers’ difficulties is mitigated by the fact that we collect a significant portion of the receivables from these carriers through the Airline Clearing House (“ACH”) and other similar clearing houses. As of December 31, 2013, approximately 57% of our air customers make payments through the ACH which accounts for approximately 94% of our air revenue. For these carriers, we believe the use of ACH mitigates our credit risk with respect to airline bankruptcies. For those carriers from which we do not collect payments through the ACH or other similar clearing houses, our credit risk is higher. However, we monitor these carriers and account for the related credit risk through our normal reserve policies. | ||||||
We evaluate the collectability of our accounts receivable based on a combination of factors. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations to us (e.g., bankruptcy filings, failure to pay amounts due to us or others), we record a specific reserve for bad debts against amounts due to reduce the recorded receivable to the amount we reasonably believe will be collected. For all other customers, we record reserves for bad debts based on past write-off history (average percentage of receivables written off historically) and the length of time the receivables are past due. We maintained an allowance for losses of approximately $22 million and $28 million at December 31, 2013 and 2012, respectively, based upon the amount of accounts receivable expected to prove uncollectible. |
Discontinued_Operations_and_Di1
Discontinued Operations and Dispositions (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||
Summary of Discontinued Operations | The following table summarizes the results of our discontinued operations (in thousands): | The following table summarizes the results of our discontinued operations: | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | ||||||||||||||||||||||||||||
September 30, | September 30, | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | (Amounts in thousands) | ||||||||||||||||||||||||||
Revenue | $ | — | $ | 12,806 | $ | — | $ | 48,549 | Revenue | $ | 49,124 | $ | 107,189 | $ | 124,763 | |||||||||||||||
Cost of revenue | 146 | 2,882 | 1,257 | 14,668 | Cost of revenue | (2,176 | ) | 26,694 | 36,502 | |||||||||||||||||||||
Selling, general and administrative | 680 | 469 | 3,023 | 31,030 | Selling, general and administrative | 23,542 | 107,808 | 101,873 | ||||||||||||||||||||||
Impairment expense | 516 | 11,250 | — | |||||||||||||||||||||||||||
Operating (loss) income | (826 | ) | 9,455 | (4,280 | ) | 2,851 | Depreciation and amortization | 2,599 | 4,412 | 5,440 | ||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||
Interest expense, net | (2,559 | ) | 3,613 | (5,917 | ) | 1,493 | Operating income (loss) | 24,643 | (42,975 | ) | (19,052 | ) | ||||||||||||||||||
Loss on sale of businesses, net | — | — | — | (27,708 | ) | |||||||||||||||||||||||||
Other, net | (392 | ) | (4,283 | ) | (2,044 | ) | (880 | ) | Other income (expense): | |||||||||||||||||||||
Interest expense, net | (1,217 | ) | (8,898 | ) | (6,368 | ) | ||||||||||||||||||||||||
Total other expense, net | (2,951 | ) | (670 | ) | (7,961 | ) | (27,095 | ) | Loss on sale of businesses, net | (27,709 | ) | (8,266 | ) | — | ||||||||||||||||
Other, net | 1,988 | (2,607 | ) | (2,161 | ) | |||||||||||||||||||||||||
(Loss) income from discontinuing operations before income taxes | (3,777 | ) | 8,785 | (12,241 | ) | (24,244 | ) | |||||||||||||||||||||||
(Benefit) provision for income taxes | (2,041 | ) | 5,770 | (4,224 | ) | (3,349 | ) | Total other expense, net | (26,938 | ) | (19,771 | ) | (8,529 | ) | ||||||||||||||||
Net (loss) income from discontinued operations | $ | (1,736 | ) | $ | 3,015 | $ | (8,017 | ) | $ | (20,895 | ) | Loss from discontinuing operations before income taxes | (2,295 | ) | (62,746 | ) | (27,581 | ) | ||||||||||||
Provision (benefit) for income taxes | 4,881 | (13,799 | ) | (4,120 | ) | |||||||||||||||||||||||||
Net loss from discontinued operations | $ | (7,176 | ) | $ | (48,947 | ) | $ | (23,461 | ) | |||||||||||||||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||
Change in Restructuring Accruals | The change in our restructuring accruals, included in other current liabilities, is as follows (in thousands): | The roll forward of our restructuring accruals, included in other current liabilities, is as follows: | ||||||||||||||||||||||||
Employee Termination Benefits | Employee Termination Benefits | |||||||||||||||||||||||||
Travelocity | Technology | Total | Travelocity | Technology | Total | |||||||||||||||||||||
Organization | Organization | |||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 17,731 | $ | 8,163 | $ | 25,894 | (Amounts in thousands) | |||||||||||||||||||
Charges | 2,102 | — | 2,102 | Charges | $ | 17,956 | $ | 8,163 | $ | 26,119 | ||||||||||||||||
Adjustments | (3,938 | ) | (914 | ) | (4,852 | ) | Payments | 225 | — | 225 | ||||||||||||||||
Payments | (9,261 | ) | (6,877 | ) | (16,138 | ) | ||||||||||||||||||||
Restructuring liability at December 31, 2013 | $ | 17,731 | $ | 8,163 | $ | 25,894 | ||||||||||||||||||||
Balance as of September 30, 2014 | $ | 6,634 | $ | 372 | $ | 7,006 | ||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||
Summary of Abacus' Income Statement Information | A summary of Abacus’ income statement information is as follows (in thousands): | The following table displays the name of each of those investees that we do not control but over which we exert significant influence, and our voting interest in their stock held at December 31, 2013: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | Joint Venture | Voting | |||||||||||||||||||
September 30, | September 30, | Interest | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Auto Holidays (Pty) Limited (South Africa) | 50 | % | ||||||||||||||||
Revenue | $ | 87,039 | $ | 83,237 | $ | 263,536 | $ | 248,814 | ESS Elektroniczne Systemy Spzedazy Sp. zo.o | 40 | % | |||||||||||
Operating income | 12,876 | 15,946 | 42,961 | 41,683 | ABACUS International PTE Ltd | 35 | % | |||||||||||||||
Net income | 10,793 | 8,887 | 34,863 | 30,575 | Sabre Bulgaria AD | 20 | % | |||||||||||||||
Depreciation and Amortization Policies for Property and Equipment | Our depreciation and amortization policies are as follows: | |||||||||||||||||||||
Buildings | Lesser of lease term or 35 years | |||||||||||||||||||||
Leasehold improvements | Lesser of lease term or useful life | |||||||||||||||||||||
Furniture and fixtures | 5 to 15 years | |||||||||||||||||||||
Equipment, general office and computer | 3 to 5 years | |||||||||||||||||||||
Software developed for internal use | 3 to 7 years |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Cost | The following table provides the components of net periodic benefit costs associated with our pension and other postretirement benefit plans for the three and nine months ended September 30, 2014 and 2013 (in thousands): | The following table provides the components of net periodic benefit costs associated with our pension and other postretirement benefit plans for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | Pension Benefits | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | (Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
Pension Benefits: | Interest cost | $ | 17,930 | $ | 19,744 | $ | 20,447 | |||||||||||||||||||||||||||||||||||
Interest cost | $ | 4,886 | $ | 4,483 | $ | 14,686 | $ | 13,448 | Expected return on plan assets | (23,635 | ) | (24,323 | ) | (23,820 | ) | |||||||||||||||||||||||||||
Expected return on plan assets | (5,909 | ) | (5,908 | ) | (17,959 | ) | (17,726 | ) | Amortization of prior service credit | (1,432 | ) | (1,432 | ) | (1,432 | ) | |||||||||||||||||||||||||||
Amortization of prior service credit | (358 | ) | (359 | ) | (1,074 | ) | (1,075 | ) | Amortization of actuarial loss | 7,383 | 4,269 | 2,195 | ||||||||||||||||||||||||||||||
Amortization of actuarial loss | 1,290 | 1,846 | 3,690 | 5,537 | ||||||||||||||||||||||||||||||||||||||
Net benefit | $ | 246 | $ | (1,742 | ) | $ | (2,610 | ) | ||||||||||||||||||||||||||||||||||
Net periodic (credit) cost | $ | (91 | ) | $ | 62 | $ | (657 | ) | $ | 184 | ||||||||||||||||||||||||||||||||
Other Benefits: | ||||||||||||||||||||||||||||||||||||||||||
Interest cost | — | 10 | 2 | 30 | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | — | (3,087 | ) | — | (9,261 | ) | Other Benefits | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
Amortization of actuarial gain | (33 | ) | (477 | ) | (99 | ) | (1,439 | ) | (Amounts in thousands) | |||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 1 | ||||||||||||||||||||||||||||||||||||
Net periodic credit | $ | (33 | ) | $ | (3,554 | ) | $ | (97 | ) | $ | (10,670 | ) | Interest cost | 42 | 91 | 176 | ||||||||||||||||||||||||||
Amortization of prior service credit | (12,348 | ) | (11,397 | ) | (11,397 | ) | ||||||||||||||||||||||||||||||||||||
Amortization of actuarial gain | (3,932 | ) | (1,929 | ) | (745 | ) | ||||||||||||||||||||||||||||||||||||
Net benefit | $ | (16,238 | ) | $ | (13,235 | ) | $ | (11,965 | ) | |||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Plans Benefit Obligations, Fair Value of Assets and Funded Status | The following tables provide a reconciliation of the changes in the plans’ benefit obligations, fair value of assets and the funded status as of December 31, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||||||||||||||||
Benefit obligation at January 1 | $ | (440,752 | ) | $ | (381,506 | ) | $ | (3,045 | ) | $ | (5,723 | ) | ||||||||||||||||||||||||||||||
Service cost | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Interest cost | (17,930 | ) | (19,744 | ) | (41 | ) | (91 | ) | ||||||||||||||||||||||||||||||||||
Actuarial gains (losses), net | 37,416 | (59,434 | ) | 607 | (100 | ) | ||||||||||||||||||||||||||||||||||||
Benefits paid | 24,805 | 19,932 | 1,665 | 2,869 | ||||||||||||||||||||||||||||||||||||||
Benefit obligation at December 31 | $ | (396,461 | ) | $ | (440,752 | ) | $ | (814 | ) | $ | (3,045 | ) | ||||||||||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||||||||||||||||||
Fair value of assets at January 1 | $ | 334,701 | $ | 293,255 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Actual return on plan assets | 30,007 | 41,143 | — | — | ||||||||||||||||||||||||||||||||||||||
Employer contributions | 2,579 | 20,235 | 1,665 | 2,869 | ||||||||||||||||||||||||||||||||||||||
Benefits paid | (24,805 | ) | (19,932 | ) | (1,665 | ) | (2,869 | ) | ||||||||||||||||||||||||||||||||||
Fair value of assets at December 31 | $ | 342,482 | $ | 334,701 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Funded status at December 31 | $ | (53,979 | ) | $ | (106,051 | ) | $ | (814 | ) | $ | (3,045 | ) | ||||||||||||||||||||||||||||||
Summary of Cumulative Amount of Recognized in Balance Sheet | The cumulative amounts recognized in the consolidated balance sheets as of December 31, 2013 and December 31, 2012, consist of: | |||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Total | ||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Current liabilities | $ | — | $ | — | $ | (743 | ) | $ | (1,913 | ) | $ | (743 | ) | $ | (1,913 | ) | ||||||||||||||||||||||||||
Noncurrent liabilities | (53,979 | ) | (106,051 | ) | (71 | ) | (1,132 | ) | (54,050 | ) | (107,183 | ) | ||||||||||||||||||||||||||||||
Total | $ | (53,979 | ) | $ | (106,051 | ) | $ | (814 | ) | $ | (3,045 | ) | $ | (54,793 | ) | $ | (109,096 | ) | ||||||||||||||||||||||||
Schedule of Amount Recognized in Accumulated Other Comprehensive Income Loss Net of Deferred Taxes | The amounts recognized in accumulated other comprehensive income (loss), net of deferred taxes, as of December 31, 2013 and December 31, 2012 consists of: | |||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Total | ||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Net actuarial gain (loss) | $ | (79,959 | ) | $ | (113,697 | ) | $ | 50 | $ | 2,589 | $ | (79,909 | ) | $ | (111,108 | ) | ||||||||||||||||||||||||||
Prior service credit | 16,092 | 17,009 | 55 | 7,941 | 16,147 | 24,950 | ||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | $ | (63,867 | ) | $ | (96,688 | ) | $ | 105 | $ | 10,530 | $ | (63,762 | ) | $ | (86,158 | ) | ||||||||||||||||||||||||||
Summary of Discount Rate Used in Measurement of Benefit Obligation | The discount rate used in the measurement of our benefit obligations as of December 31, 2013 and December 31, 2012 is as follows: | |||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Weighted-average discount rate | 5.1 | % | 4.19 | % | 0.55 | % | 2.07 | % | ||||||||||||||||||||||||||||||||||
Schedule of Obligations Recognized in Other Comprehensive Income | ||||||||||||||||||||||||||||||||||||||||||
Obligations Recognized in | Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (43,787 | ) | $ | 42,614 | $ | (42 | ) | $ | 187 | ||||||||||||||||||||||||||||||||
Amortization of actuarial gain (loss) | (7,383 | ) | (4,269 | ) | 3,932 | 1,929 | ||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | 1,432 | 1,432 | 12,348 | 11,397 | ||||||||||||||||||||||||||||||||||||||
Total recognized in other comprehensive income | $ | (49,738 | ) | $ | 39,777 | $ | 16,238 | $ | 13,513 | |||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | (49,492 | ) | $ | 38,035 | $ | — | $ | 278 | |||||||||||||||||||||||||||||||||
Summary of Principal Assumptions Used in Measurement of Net Benefit Cost | The principal assumptions used in the measurement of our net benefit costs for the three years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.19 | % | 5.32 | % | 5.88 | % | 1.16 | % | 2.32 | % | 2.69 | % | ||||||||||||||||||||||||||||||
Expected return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | — | — | — | |||||||||||||||||||||||||||||||||
Schedule of Fair Value of LPP Assets | It is recognized that the investment management of the LPP assets has a direct effect on the achievement of its goal. As defined in Note 13, Fair Value Measurements, the following tables present the fair value of the LPP assets as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||||||||||||||||||||
Foreign large value | $ | 42,635 | $ | — | $ | — | $ | 42,635 | ||||||||||||||||||||||||||||||||||
Large blend | 43,222 | — | — | 43,222 | ||||||||||||||||||||||||||||||||||||||
Large growth | 21,433 | — | — | 21,433 | ||||||||||||||||||||||||||||||||||||||
Money market | 6,437 | — | — | 6,437 | ||||||||||||||||||||||||||||||||||||||
Common collective trusts: | ||||||||||||||||||||||||||||||||||||||||||
Fixed income securities | — | 142,289 | — | 142,289 | ||||||||||||||||||||||||||||||||||||||
Foreign equity securities | — | 43,107 | — | 43,107 | ||||||||||||||||||||||||||||||||||||||
U.S. equity securities | — | 21,645 | — | 21,645 | ||||||||||||||||||||||||||||||||||||||
Real estate | — | — | 21,714 | 21,714 | ||||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 113,727 | $ | 207,041 | $ | 21,714 | $ | 342,482 | ||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||||||||||||||||||||
Foreign large value | $ | 43,183 | $ | — | $ | — | $ | 43,183 | ||||||||||||||||||||||||||||||||||
Large blend | 40,944 | — | — | 40,944 | ||||||||||||||||||||||||||||||||||||||
Large growth | 20,790 | — | — | 20,790 | ||||||||||||||||||||||||||||||||||||||
Money market | 4,474 | — | — | 4,474 | ||||||||||||||||||||||||||||||||||||||
Common collective trusts: | ||||||||||||||||||||||||||||||||||||||||||
Fixed income securities | — | 142,186 | — | 142,186 | ||||||||||||||||||||||||||||||||||||||
Foreign equity securities | — | 43,429 | — | 43,429 | ||||||||||||||||||||||||||||||||||||||
U.S. equity securities | — | 20,207 | — | 20,207 | ||||||||||||||||||||||||||||||||||||||
Real estate | — | — | 19,488 | 19,488 | ||||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 109,391 | $ | 205,822 | $ | 19,488 | $ | 334,701 | ||||||||||||||||||||||||||||||||||
Schedule of Plan Assets Valued Using Signifcant Unobservable Inputs (Level 3) | The following table provides a rollforward of plan assets valued using significant unobservable inputs (level 3), in thousands: | |||||||||||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance at December 31, 2011 | $ | 17,755 | ||||||||||||||||||||||||||||||||||||||||
Contributions | 265 | |||||||||||||||||||||||||||||||||||||||||
Net distributions | (265 | ) | ||||||||||||||||||||||||||||||||||||||||
Advisory fee | (200 | ) | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 961 | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized gain (loss) | 936 | |||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) | 36 | |||||||||||||||||||||||||||||||||||||||||
Ending balance at December 31, 2012 | 19,488 | |||||||||||||||||||||||||||||||||||||||||
Contributions | 282 | |||||||||||||||||||||||||||||||||||||||||
Net distributions | (282 | ) | ||||||||||||||||||||||||||||||||||||||||
Advisory fee | (220 | ) | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 1,045 | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized gain (loss) | 1,382 | |||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) | 19 | |||||||||||||||||||||||||||||||||||||||||
Ending balance at December 31, 2013 | $ | 21,714 | ||||||||||||||||||||||||||||||||||||||||
Summary of Estimated Future Benefit Payments | We expect to make the following estimated future benefit payments under the plans as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||||||||||||||||||||||||
2014 | $ | 25,000 | $ | 1,000 | ||||||||||||||||||||||||||||||||||||||
2015 | 26,000 | — | ||||||||||||||||||||||||||||||||||||||||
2016 | 27,000 | — | ||||||||||||||||||||||||||||||||||||||||
2017 | 27,000 | — | ||||||||||||||||||||||||||||||||||||||||
2018 | 28,000 | — | ||||||||||||||||||||||||||||||||||||||||
2019-2023 | 147,000 | — |
Debt_Tables
Debt (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of Outstanding Debt | The following table sets forth the face values of our outstanding debt as of September 30, 2014 and December 31, 2013 (in thousands): | The following table sets forth our outstanding debt: | ||||||||||||||||||||||||||||||||
Rate | Maturity | September 30, | December 31, | December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | Rate | Maturity | 2013 | 2012 | |||||||||||||||||||||||||||||
Senior secured credit facilities: | (Amounts in thousands) | |||||||||||||||||||||||||||||||||
Term Loan B | L+3.00 | % | February 2019 | $ | 1,743,938 | $ | 1,757,250 | Senior secured credit facilities: | ||||||||||||||||||||||||||
Incremental term loan facility | L+3.00 | % | Feb-19 | 346,500 | 349,125 | Term Loan B | L+4.00 | % | Feb-19 | $ | 1,747,378 | $ | — | |||||||||||||||||||||
Term Loan C | L+2.50 | % | December 2017 | 49,313 | 361,250 | Incremental term loan facility | L+3.50 | % | Feb-19 | 349,125 | — | |||||||||||||||||||||||
Revolver, $370 million | L+2.75 | % | Feb-19 | — | — | Term Loan C | L+3.00 | % | December 2017 | 360,477 | — | |||||||||||||||||||||||
Revolver, $35 million | L+3.25 | % | Feb-18 | — | — | Revolving credit facility | L+3.75 | % | Feb-18 | — | — | |||||||||||||||||||||||
Senior unsecured notes due 2016 | 8.35 | % | Mar-16 | 400,000 | 400,000 | Initial term loan facility | L+2.00 | % | September 2014 | — | 238,335 | |||||||||||||||||||||||
Senior secured notes due 2019 | 8.5 | % | May-19 | 480,000 | 800,000 | First extended term loan facility | L+5.75 | % | Sep-17 | — | 1,162,622 | |||||||||||||||||||||||
Mortgage facility | 5.8 | % | Mar-17 | 82,457 | 83,286 | Second extended term loan facility | L+5.75 | % | December 2017 | — | 401,515 | |||||||||||||||||||||||
Incremental term loan facility | L+6.00 | % | December 2017 | — | 370,536 | |||||||||||||||||||||||||||||
Face value of total debt outstanding | 3,102,208 | 3,750,911 | Senior unsecured notes due 2016 | 8.35 | % | March 2016 | 389,321 | 385,099 | ||||||||||||||||||||||||||
Less current portion of debt outstanding | (22,418 | ) | (86,117 | ) | Senior secured notes due 2019 | 8.5 | % | May 2019 | 799,823 | 801,712 | ||||||||||||||||||||||||
Mortgage facility | 5.8 | % | March 2017 | 83,541 | 84,340 | |||||||||||||||||||||||||||||
Face value of long-term debt outstanding | $ | 3,079,790 | $ | 3,664,794 | ||||||||||||||||||||||||||||||
Total debt | $ | 3,729,665 | $ | 3,444,159 | ||||||||||||||||||||||||||||||
Current portion of debt | 86,117 | 23,232 | ||||||||||||||||||||||||||||||||
Long-term debt | 3,643,548 | 3,420,927 | ||||||||||||||||||||||||||||||||
Total debt | $ | 3,729,665 | $ | 3,444,159 | ||||||||||||||||||||||||||||||
Schedule of Debt Interest Rate Margin | The Eurocurrency rate is based on LIBOR for all U.S. dollar borrowings and has a floor. | The Eurocurrency rate is based on LIBOR for all U.S. dollar borrowings and has a floor. | ||||||||||||||||||||||||||||||||
Eurocurrency borrowings | Base rate borrowings | Eurocurrency borrowings | Base rate borrowings | |||||||||||||||||||||||||||||||
Applicable Margin (1) | Floor | Applicable Margin (1) | Floor | Applicable Margin | Floor | Applicable Margin | Floor | |||||||||||||||||||||||||||
Term Loan B, prior to Repricing Amendments | 4 | % | 1.25 | % | 3 | % | 2.25 | % | Term Loan B | 4 | % | 1.25 | % | 3 | % | 2.25 | % | |||||||||||||||||
Term Loan B, subsequent to Repricing Amendments | 3.25 | % | 1 | % | 2.25 | % | 2 | % | Incremental term loan facility | 3.5 | % | 1 | % | 2.5 | % | 2 | % | |||||||||||||||||
Incremental term loan facility | 3.5 | % | 1 | % | 2.5 | % | 2 | % | Term Loan C | 3 | % | 1 | % | 2 | % | 2 | % | |||||||||||||||||
Term Loan C | 3 | % | 1 | % | 2 | % | 2 | % | Revolving credit facility | 3.75 | % | N/A | 2.75 | % | N/A | |||||||||||||||||||
Revolver, $370 million | 3 | % | N/A | 2 | % | N/A | ||||||||||||||||||||||||||||
Revolver, $35 million | 3.75 | % | N/A | 2.75 | % | N/A | ||||||||||||||||||||||||||||
-1 | Applicable margins do not reflect potential step downs which are determined by the Senior Secured Leverage Ratio. See below for additional information. | |||||||||||||||||||||||||||||||||
Schedule of Effective Interest Rates | Our effective interest rates for the three and nine months ended September 30, 2014 and 2013, inclusive of amounts charged to interest expense as described above, are as follows: | Our effective interest rates for the years ended December 31, 2013, 2012 and 2011, inclusive of the accelerated amortization described above, are as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | ||||||||||||||||||||||||||||||||
September 30, | September 30, | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Including the impact of interest rate swaps | 6.86 | % | 6.53 | % | 4.31 | % | ||||||||||||||||||||||||
Including the impact of interest rate swaps | 5.25 | % | 6.26 | % | 5.64 | % | 7.15 | % | Excluding the impact of interest rate swaps | 6.21 | % | 5.65 | % | 2.72 | % | |||||||||||||||||||
Excluding the impact of interest rate swaps | 4.5 | % | 5.51 | % | 4.94 | % | 6.43 | % | ||||||||||||||||||||||||||
Aggregate Maturities of Long-Term Debt | As of September 30, 2014, aggregate maturities of our long-term debt were as follows (in thousands): | |||||||||||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||
Three months ending December 31, 2014 | $ | 5,601 | ||||||||||||||||||||||||||||||||
2015 | 22,435 | |||||||||||||||||||||||||||||||||
2016 | 422,493 | |||||||||||||||||||||||||||||||||
2017 | 150,303 | |||||||||||||||||||||||||||||||||
2018 | 21,250 | |||||||||||||||||||||||||||||||||
Thereafter | 2,480,125 | |||||||||||||||||||||||||||||||||
Total | $ | 3,102,208 | ||||||||||||||||||||||||||||||||
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||
Schedule of Unsettled Purchased Foreign Currency Forward Contracts | As of September 30, 2014 and December 31, 2013, we had the following unsettled purchased foreign currency forward contracts that were entered into to hedge our operational exposure to foreign currency movements (in thousands, except for average contract rates): | As of December 31, 2013 and 2012, we had the following unsettled purchased foreign currency forward contracts that were entered into to hedge our operational exposure to foreign currency movements: | ||||||||||||||||||||||||||||||||||||
September 30, 2014 Outstanding Notional Amount | December 31, 2013 Outstanding Notional Amount | |||||||||||||||||||||||||||||||||||||
Buy Currency | Sell Currency | Foreign | USD | Average Contract | Buy Currency | Sell Currency | Foreign | USD | Average Contract | |||||||||||||||||||||||||||||
Amount | Amount | Rate | Amount | Amount | Rate | |||||||||||||||||||||||||||||||||
US Dollar | Australian Dollar | 6,950 | $ | 6,195 | 0.8914 | (Amounts in thousands, excluding average contract rates) | ||||||||||||||||||||||||||||||||
Euro | US Dollar | 22,750 | 30,323 | 1.3329 | US Dollar | Australian Dollar | 5,625 | $ | 5,041 | 0.8962 | ||||||||||||||||||||||||||||
British Pound Sterling | US Dollar | 21,950 | 36,239 | 1.651 | Australian Dollar | US Dollar | 975 | 996 | 1.0215 | |||||||||||||||||||||||||||||
Indian Rupee | US Dollar | 1,074,000 | 16,680 | 0.0155 | Euro | US Dollar | 12,800 | 16,624 | 1.2988 | |||||||||||||||||||||||||||||
Polish Zloty | US Dollar | 193,800 | 61,376 | 0.3167 | British Pound Sterling | US Dollar | 18,450 | 28,908 | 1.5668 | |||||||||||||||||||||||||||||
Indian Rupee | US Dollar | 1,174,000 | 18,593 | 0.0158 | ||||||||||||||||||||||||||||||||||
December 31, 2013 Outstanding Notional Amount | Polish Zloty | US Dollar | 170,400 | 52,748 | 0.3096 | |||||||||||||||||||||||||||||||||
Buy Currency | Sell Currency | Foreign | USD | Average Contract | ||||||||||||||||||||||||||||||||||
Amount | Amount | Rate | December 31, 2012 Outstanding Notional Amount | |||||||||||||||||||||||||||||||||||
US Dollar | Australian Dollar | 5,625 | $ | 5,041 | 0.8962 | Buy Currency | Sell Currency | Foreign | USD | Average Contract | ||||||||||||||||||||||||||||
Australian Dollar | US Dollar | 975 | 996 | 1.0215 | Amount | Amount | Rate | |||||||||||||||||||||||||||||||
Euro | US Dollar | 12,800 | 16,624 | 1.2988 | (Amounts in thousands, excluding average contract rates) | |||||||||||||||||||||||||||||||||
British Pound Sterling | US Dollar | 18,450 | 28,908 | 1.5668 | Australian Dollar | US Dollar | 4,400 | $ | 4,433 | 1.0074 | ||||||||||||||||||||||||||||
Indian Rupee | US Dollar | 1,174,000 | 18,593 | 0.0158 | Euro | US Dollar | 20,005 | 26,168 | 1.3081 | |||||||||||||||||||||||||||||
Polish Zloty | US Dollar | 170,400 | 52,748 | 0.3096 | British Pound Sterling | US Dollar | 15,850 | 25,418 | 1.6036 | |||||||||||||||||||||||||||||
Indian Rupee | US Dollar | 1,236,000 | 21,899 | 0.0177 | ||||||||||||||||||||||||||||||||||
Polish Zloty | US Dollar | 158,450 | 48,503 | 0.3061 | ||||||||||||||||||||||||||||||||||
Schedule of Outstanding and Matured Interest Rate Swaps | The table below sets forth the remaining two interest rate swaps which matured on September 30, 2014. | The table below includes the outstanding and matured interest rate swaps relevant to the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||||||||||||||
Notional | Interest Rate | Interest | Effective Date | Maturity Date | Notional | Interest Rate | Interest | Effective Date | Maturity Date | |||||||||||||||||||||||||||||
Amount | Received | Rate Paid | Amount | Received | Rate Paid | |||||||||||||||||||||||||||||||||
$400 million | 1 month LIBOR | 2.03 | % | July 29, 2011 | September 30, 2014 | Outstanding: | $ | 400 million | 1 month LIBOR | 2.03 | % | July 29, 2011 | September 30, 2014 | |||||||||||||||||||||||||
$350 million | 1 month LIBOR | 2.51 | % | April 30, 2012 | September 30, 2014 | $ | 350 million | 1 month LIBOR | 2.51 | % | April 30, 2012 | 30-Sep-14 | ||||||||||||||||||||||||||
$750 million | $ | 750 million | ||||||||||||||||||||||||||||||||||||
Matured: | $ | 800 million | 3 month LIBOR | 5.04 | % | April 30, 2007 | 30-Apr-12 | |||||||||||||||||||||||||||||||
$ | 350 million | 3 month LIBOR | 4.99 | % | 30-Apr-07 | 30-Apr-11 | ||||||||||||||||||||||||||||||||
$ | 125 million | 3 month LIBOR | 5.04 | % | 30-Apr-07 | 28-Apr-11 | ||||||||||||||||||||||||||||||||
$ | 125 million | 3 month LIBOR | 5.03 | % | 30-Apr-07 | 28-Apr-11 | ||||||||||||||||||||||||||||||||
$ | 1,400 million | |||||||||||||||||||||||||||||||||||||
Schedule of Estimated Fair Values of Derivatives Designated as Hedging Instruments | The estimated fair values of our derivatives designated as hedging instruments as of September 30, 2014 and December 31, 2013 are as follows (in thousands): | The estimated fair values of our derivatives designated as hedging instruments as of December 31, 2013 and 2012 are provided below: | ||||||||||||||||||||||||||||||||||||
Derivative Assets (Liabilities) | Derivative Assets (Liabilities) | |||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value as of | Derivatives designated as | Balance Sheet Location | Fair Value as of December 31, | ||||||||||||||||||||||||||||||||||
Derivatives designated as | September 30, 2014 | December 31, 2013 | hedging instruments | 2013 | 2012 | |||||||||||||||||||||||||||||||||
hedging instruments | (Amounts in thousands) | |||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid expenses | $ | — | $ | 5,374 | Foreign exchange contracts | Prepaid expenses | $ | 5,374 | $ | 2,568 | |||||||||||||||||||||||||||
Other accrued liabilities | $ | (4,079 | ) | $ | — | Interest rate swaps | Other accrued liabilities | — | (15,111 | ) | ||||||||||||||||||||||||||||
Other noncurrent liabilities | — | (10,461 | ) | |||||||||||||||||||||||||||||||||||
Total | $ | 5,374 | $ | (23,004 | ) | |||||||||||||||||||||||||||||||||
Schedule of Effects of Derivative Instruments Net of Taxes on Other Comprehensive Income (Loss) | The effects of derivative instruments, net of taxes, on other comprehensive income (loss) (“OCI”) for the three and nine months ended September 30, 2014 and 2013 are as follows (in thousands): | The effects of derivative instruments, net of taxes, on other comprehensive income (loss) (“OCI”) for the years ended December 31, 2013, 2012 and 2011 are provided below: | ||||||||||||||||||||||||||||||||||||
Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||||||||||||||||||
Recognized in OCI on | Recognized in OCI on | |||||||||||||||||||||||||||||||||||||
Derivative (Effective Portion) | Derivative (Effective Portion) | |||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow | Three Months Ended | Nine Months Ended | Derivatives in Cash Flow | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
Hedging Relationships | September 30, | September 30, | Hedging Relationships | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | (Amounts in thousands) | ||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (3,799 | ) | $ | 2,752 | $ | (3,181 | ) | $ | 564 | Foreign exchange contracts | $ | 2,999 | $ | 4,593 | $ | (577 | ) | ||||||||||||||||||||
Interest rate swaps | — | (3,924 | ) | (24,092 | ) | |||||||||||||||||||||||||||||||||
Amount of Gain (Loss) Reclassified | Total | $ | 2,999 | $ | 669 | $ | (24,669 | ) | ||||||||||||||||||||||||||||||
from Accumulated OCI into | ||||||||||||||||||||||||||||||||||||||
Income (Effective Portion) | ||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow | Income Statement | Three Months Ended | Nine Months Ended | Amount of Gain (Loss) Reclassified | ||||||||||||||||||||||||||||||||||
Hedging Relationships | Location | September 30, | September 30, | from Accumulated OCI into | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Income (Effective Portion) | ||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Cost of revenue | $ | 646 | $ | (370 | ) | $ | 4,242 | $ | 685 | Derivatives in Cash Flow | Year Ended December 31, | ||||||||||||||||||||||||||
Hedging Relationships | Location | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Cost of revenue | $ | 915 | $ | (2,890 | ) | $ | 8,508 | ||||||||||||||||||||||||||||||
Interest rate swaps | Interest expense | — | (15,906 | ) | (29,250 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 915 | $ | (18,796 | ) | $ | (20,742 | ) | ||||||||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the fair value of our assets (liabilities) that are required to be measured at fair value on a recurring basis as of December 31, 2013 (in thousands): | The following tables present the fair value of our assets (liabilities) that are required to be measured at fair value on a recurring basis as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Fair Value at Reporting Date | Fair Value at Reporting Date Using | |||||||||||||||||||||||||||||||||
Using | December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | (Amounts in thousands) | ||||||||||||||||||||||||||||||
Contingent consideration | $ | (26,303 | ) | $ | — | $ | — | $ | (26,303 | ) | Contingent consideration | $ | (26,303 | ) | $ | — | $ | — | $ | (26,303 | ) | |||||||||||||
Derivatives | Derivatives | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts (see Note 9) | 5,374 | — | 5,374 | — | Foreign currency forward contracts (see Note 12) | 5,374 | — | 5,374 | — | |||||||||||||||||||||||||
Interest rate swap contracts (see Note 9) | (11,533 | ) | — | (11,533 | ) | — | Interest rate swap contracts (see Note 12) | (11,533 | ) | — | (11,533 | ) | — | |||||||||||||||||||||
Contingent call option, 2019 Notes (see Note 8) | 1,657 | — | — | 1,657 | Contingent call option, 2019 Notes (see Note 11) | 1,657 | — | — | 1,657 | |||||||||||||||||||||||||
Total derivatives | (4,502 | ) | — | (6,159 | ) | 1,657 | Total derivatives | (4,502 | ) | — | (6,159 | ) | 1,657 | |||||||||||||||||||||
Total | $ | (30,805 | ) | $ | — | $ | (6,159 | ) | $ | (24,646 | ) | Total | $ | (30,805 | ) | $ | — | $ | (6,159 | ) | $ | (24,646 | ) | |||||||||||
Fair Value at Reporting Date Using | ||||||||||||||||||||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||
Contingent consideration | $ | (25,193 | ) | $ | — | $ | — | (25,193 | ) | |||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||
Foreign currency forward contracts (see Note 12) | 2,568 | — | 2,568 | — | ||||||||||||||||||||||||||||||
Interest rate swap contracts (see Note 12) | (25,572 | ) | — | (25,572 | ) | — | ||||||||||||||||||||||||||||
Total derivatives | (23,004 | ) | — | (23,004 | ) | — | ||||||||||||||||||||||||||||
Total | $ | (48,197 | ) | $ | — | $ | (23,004 | ) | $ | (25,193 | ) | |||||||||||||||||||||||
Schedule of Fair Value and Carrying Value of 2016 Notes, 2019 Notes and Term Loans | The following table presents the fair value and carrying value of our 2016 Notes, 2019 Notes and term loans under our Amended and Restated Credit Agreement as of September 30, 2014 and December 31, 2013 (in thousands): | The following table presents the fair value and carrying value of our 2016 Notes, 2019 Notes and term loans as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Fair Value at | Carrying Value at | Financial Instrument | Fair Value at | Carrying Value at | ||||||||||||||||||||||||||||||
Financial Instrument | September 30, | December 31, | September 30, | December 31, | December 31, 2013 | December 31, 2013 | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | $400 million 2016 notes | $ 448 million | $ 389 million | ||||||||||||||||||||||||||||
Term Loan B | $ | 1,722,138 | $ | 1,777,107 | $ | 1,736,119 | $ | 1,747,378 | $800 million 2019 notes | $ 886 million | $ 800 million | |||||||||||||||||||||||
Incremental term loan facility | 342,602 | 349,334 | 346,500 | 349,125 | $1,775 million Term Loan B | $1,777 million | $1,747 million | |||||||||||||||||||||||||||
Term Loan C | 49,189 | 363,056 | 49,061 | 360,477 | $350 million Incremental Term Facility | $ 349 million | $ 349 million | |||||||||||||||||||||||||||
Senior unsecured notes due 2016 | 433,000 | 448,320 | 392,767 | 389,321 | $425 million Term Loan C | $ 363 million | $ 360 million | |||||||||||||||||||||||||||
Senior secured notes due 2019 | 520,500 | 886,000 | 480,779 | 799,823 | ||||||||||||||||||||||||||||||
Financial Instrument | Fair Value at | Carrying Value at | ||||||||||||||||||||||||||||||||
December 31, 2012 | December 31, 2012 | |||||||||||||||||||||||||||||||||
$400 million 2016 notes | $ 429 million | $ 385 million | ||||||||||||||||||||||||||||||||
$800 million 2019 notes | $ 854 million | $ 802 million | ||||||||||||||||||||||||||||||||
$1,802 million Term Loan B | $1,812 million | $1,802 million | ||||||||||||||||||||||||||||||||
$375 million incremental term loan | $ 380 million | $ 371 million |
Comprehensive_Income_Loss_Tabl
Comprehensive Income (Loss) (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss), Net of Related Deferred Income Taxes | At September 30, 2014 and December 31, 2013, the components of accumulated other comprehensive income (loss), net of related deferred income taxes were as follows (in thousands): | Abacus’ Condensed Consolidated Statements of Comprehensive Income are as follows: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | Year Ended December 31, | ||||||||||||||||||||
Retirement-related benefit plans | $ | (62,156 | ) | $ | (63,762 | ) | 2013 | 2012 | 2011 | |||||||||||||
Unrealized loss on foreign currency forward contracts and interest rate swaps | (3,118 | ) | (2,684 | ) | (Amounts in thousands) | |||||||||||||||||
Unrealized foreign currency translation gain | 18,761 | 15,050 | Net income (loss) | $ | 42,368 | $ | (20,366 | ) | $ | 79,452 | ||||||||||||
Other (1) | 4,921 | 1,501 | Other comprehensive loss | (4,043 | ) | (9,379 | ) | (3,588 | ) | |||||||||||||
Total accumulated other comprehensive loss, net of tax | $ | (41,592 | ) | $ | (49,895 | ) | Comprehensive loss | 38,325 | (29,745 | ) | 75,864 | |||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 88 | (76 | ) | (81 | ) | |||||||||||||||||
-1 | Primarily relates to our share of Abacus’ accumulated other comprehensive income. See Note 5, Equity Method Investments. | Comprehensive loss attributable to Abacus | $ | 38,413 | $ | (29,821 | ) | $ | 75,783 | |||||||||||||
Components of Accumulated Other Comprehensive Income (Loss), Net of Related Deferred Income Taxes | At December 31, 2013 and 2012, the components of accumulated other comprehensive income (loss), net of related deferred income taxes were as follows: | |||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||
Defined benefit pension & other post retirement benefit plans | $ | (63,762 | ) | $ | (86,158 | ) | ||||||||||||||||
Unrealized loss on foreign currency forward contracts and interest rate swaps | (2,684 | ) | (14,222 | ) | ||||||||||||||||||
Unrealized foreign currency translation gain | 15,050 | 1,934 | ||||||||||||||||||||
Other(1) | 1,501 | 2,916 | ||||||||||||||||||||
Total accumulated other comprehensive loss, net of tax | $ | (49,895 | ) | $ | (95,530 | ) | ||||||||||||||||
-1 | Primarily relates to our share of Abacus’ accumulated other comprehensive income. See Note 6, Equity Method Investments. | |||||||||||||||||||||
Reclassification Adjustments, Net of Tax | Reclassification adjustments, net of tax, for (gains) losses included in net income were as follows: | |||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||
Foreign currency translation(1) | $ | 8,162 | $ | 888 | $ | — | ||||||||||||||||
Foreign exchange contracts | (915 | ) | 2,890 | (8,508 | ) | |||||||||||||||||
Interest rate swaps | 9,453 | 15,906 | 29,250 | |||||||||||||||||||
Prior service costs and actuarial gains | (5,409 | ) | (6,716 | ) | (7,285 | ) | ||||||||||||||||
Total | $ | 11,291 | $ | 12,968 | $ | 13,457 | ||||||||||||||||
-1 | Relates to the dispositions of Zuji in 2013 and TravelGuru and Sabre Pacific in 2012. See Note 4, Discontinued Operations and Dispositions. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||
Reconciliation of Numerators and Denominators Used in Computations of Basic and Diluted Earnings Per Share | The following table reconciles the numerators and denominators used in the computations of basic and diluted earnings per share (in thousands, expect per share data): | The following table reconciles the numerators and denominators used in the computations of basic and diluted earnings per share: | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | ||||||||||||||||||||||||||||
September 30, | September 30, | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | (Amounts in thousands, except per share data) | ||||||||||||||||||||||||||
Numerator: | Net loss from continuing operations | $ | (90,455 | ) | $ | (621,726 | ) | $ | (79,294 | ) | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 39,019 | $ | 3,071 | $ | 33,008 | $ | (104,224 | ) | Net income (loss) attributable to noncontrolling interests | 2,863 | (59,317 | ) | (36,681 | ) | |||||||||||||||
Net income attributable to noncontrolling interests | 720 | 714 | 2,168 | 2,135 | Preferred stock dividends | 36,704 | 34,583 | 32,579 | ||||||||||||||||||||||
Preferred stock dividends | — | 9,242 | 11,381 | 27,219 | ||||||||||||||||||||||||||
Net loss from continuing operations available to common shareholders | $ | (130,022 | ) | $ | (596,992 | ) | $ | (75,192 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations available to common shareholders, basic and diluted | $ | 38,299 | $ | (6,885 | ) | $ | 19,459 | $ | (133,578 | ) | ||||||||||||||||||||
Basic and diluted weighted-average number of shares outstanding | 178,125 | 177,206 | 176,703 | |||||||||||||||||||||||||||
Denominator: | Basic and diluted loss per share available to common shareholders | $ | (0.73 | ) | $ | (3.37 | ) | $ | (0.43 | ) | ||||||||||||||||||||
Basic weighted-average common shares outstanding | 264,768 | 178,140 | 229,405 | 178,051 | ||||||||||||||||||||||||||
Dilutive effect of stock awards | 8,562 | — | 8,589 | — | ||||||||||||||||||||||||||
Diluted weighted-average common shares outstanding | 273,330 | 178,140 | 237,994 | 178,051 | ||||||||||||||||||||||||||
Basic earnings per share | $ | 0.14 | $ | (0.04 | ) | $ | 0.08 | $ | (0.75 | ) | ||||||||||||||||||||
Diluted earnings per share | $ | 0.14 | $ | (0.04 | ) | $ | 0.08 | $ | (0.75 | ) |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Information | Segment information for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands): | Adjusted Gross Margin for all periods presented has been recast to the revised definition: | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Previously | As Revised | Previously | As Revised | Previously | As Revised | |||||||||||||||||||||||||||||||||
Adjusted Revenue | Reported | Reported | Reported | |||||||||||||||||||||||||||||||||||||||
Travel Network | $ | 466,278 | $ | 449,562 | $ | 1,420,341 | $ | 1,381,105 | (Amounts in thousands) | |||||||||||||||||||||||||||||||||
Airline and Hospitality Solutions | 208,685 | 182,505 | 571,975 | 522,794 | Adjusted Gross Margin | |||||||||||||||||||||||||||||||||||||
Travelocity | 88,853 | 160,811 | 268,848 | 457,518 | Travel Network | $ | 860,793 | $ | 860,793 | $ | 843,863 | $ | 843,863 | $ | 772,753 | $ | 772,753 | |||||||||||||||||||||||||
Eliminations | (4,638 | ) | (17,055 | ) | (24,253 | ) | (58,018 | ) | Airline and Hospitality Solutions | 262,386 | 262,386 | 218,421 | 218,421 | 185,147 | 185,147 | |||||||||||||||||||||||||||
Travelocity | 353,489 | 353,489 | 413,802 | 413,802 | 447,790 | 447,790 | ||||||||||||||||||||||||||||||||||||
Total Adjusted Revenue | 759,178 | 775,823 | 2,236,911 | 2,303,399 | Eliminations | (717 | ) | (717 | ) | (1,010 | ) | (1,010 | ) | (1,083 | ) | (1,083 | ) | |||||||||||||||||||||||||
Amortization of Expedia SMA incentive payments | (2,875 | ) | — | (7,625 | ) | — | Corporate | (92,142 | ) | (56,904 | ) | (85,214 | ) | (56,787 | ) | (74,093 | ) | (70,853 | ) | |||||||||||||||||||||||
Total revenue | $ | 756,303 | $ | 775,823 | $ | 2,229,286 | $ | 2,303,399 | Total | $ | 1,383,809 | $ | 1,419,047 | $ | 1,389,862 | $ | 1,418,289 | $ | 1,330,514 | $ | 1,333,754 | |||||||||||||||||||||
Adjusted Gross Margin(a) | We define Adjusted EBITDA as income (loss) from continuing operations adjusted for impairment, acquisition related amortization expense, gain (loss) on sale of business and assets, gain (loss) on extinguishment of debt, other, net, restructuring and other costs, litigation and taxes including penalties, stock-based compensation, management fees, depreciation of fixed assets, non-acquisition related amortization, amortization of upfront incentive consideration, interest expense, and income taxes. | |||||||||||||||||||||||||||||||||||||||||
Travel Network | $ | 216,214 | $ | 207,506 | $ | 670,023 | $ | 652,568 | ||||||||||||||||||||||||||||||||||
Airline and Hospitality Solutions | 94,747 | 64,539 | 235,546 | 183,237 | Segment information for the year ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||||||||||||||||||||||||||
Travelocity | 66,013 | 102,710 | 184,124 | 277,895 | ||||||||||||||||||||||||||||||||||||||
Eliminations | (41 | ) | (123 | ) | (7,498 | ) | (514 | ) | ||||||||||||||||||||||||||||||||||
Corporate | (18,579 | ) | (5,578 | ) | (38,119 | ) | (28,651 | ) | Year Ended December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 358,354 | $ | 369,054 | $ | 1,044,076 | $ | 1,084,535 | (Amounts in thousands) | |||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(b) | Travel Network | $ | 1,821,498 | $ | 1,795,127 | $ | 1,740,007 | |||||||||||||||||||||||||||||||||||
Travel Network | $ | 193,823 | $ | 183,728 | $ | 606,637 | $ | 582,268 | Airline and Hospitality Solutions | 711,745 | 597,649 | 522,692 | ||||||||||||||||||||||||||||||
Airline and Hospitality Solutions | 81,671 | 56,940 | 197,686 | 145,485 | Travelocity | 585,989 | 659,472 | 699,604 | ||||||||||||||||||||||||||||||||||
Travelocity | 15,954 | 7,403 | (18,116 | ) | 7,528 | |||||||||||||||||||||||||||||||||||||
Total segments | 3,119,232 | 3,052,248 | 2,962,303 | |||||||||||||||||||||||||||||||||||||||
Total segments | 291,448 | 248,071 | 786,207 | 735,281 | Eliminations | (69,707 | ) | (77,884 | ) | (106,342 | ) | |||||||||||||||||||||||||||||||
Corporate | (61,522 | ) | (46,722 | ) | (168,857 | ) | (151,318 | ) | ||||||||||||||||||||||||||||||||||
Total revenue | $ | 3,049,525 | $ | 2,974,364 | $ | 2,855,961 | ||||||||||||||||||||||||||||||||||||
Total | $ | 229,926 | $ | 201,349 | $ | 617,350 | $ | 583,963 | ||||||||||||||||||||||||||||||||||
Adjusted gross margin | ||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Travel Network | $ | 860,793 | $ | 843,863 | $ | 772,753 | |||||||||||||||||||||||||||||||||||
Travel Network | $ | 14,788 | $ | 13,225 | $ | 46,597 | $ | 37,810 | Airline and Hospitality Solutions | 262,386 | 218,421 | 185,147 | ||||||||||||||||||||||||||||||
Airline and Hospitality Solutions | 26,031 | 19,853 | 79,729 | 57,225 | Travelocity | 353,489 | 413,802 | 447,790 | ||||||||||||||||||||||||||||||||||
Travelocity | 1,122 | 1,237 | 3,585 | 8,826 | Eliminations | (717 | ) | (1,010 | ) | (1,083 | ) | |||||||||||||||||||||||||||||||
Corporate | (56,904 | ) | (56,787 | ) | (70,853 | ) | ||||||||||||||||||||||||||||||||||||
Total segments | 41,941 | 34,315 | 129,911 | 103,861 | ||||||||||||||||||||||||||||||||||||||
Corporate | 29,771 | 42,051 | 100,550 | 126,416 | Total adjusted gross margin(a) | $ | 1,419,047 | $ | 1,418,289 | $ | 1,333,754 | |||||||||||||||||||||||||||||||
Total | $ | 71,712 | $ | 76,366 | $ | 230,461 | $ | 230,277 | Adjusted EBITDA(b) | |||||||||||||||||||||||||||||||||
Travel Network | $ | 772,208 | $ | 768,452 | $ | 692,571 | ||||||||||||||||||||||||||||||||||||
Adjusted Capital Expenditures(c) | Airline and Hospitality Solutions | 213,075 | 166,282 | 135,184 | ||||||||||||||||||||||||||||||||||||||
Travel Network | $ | 13,238 | $ | 19,542 | $ | 43,858 | $ | 51,593 | Travelocity | 22,852 | 61,119 | 76,469 | ||||||||||||||||||||||||||||||
Airline and Hospitality Solutions | 39,994 | 38,993 | 117,784 | 132,563 | ||||||||||||||||||||||||||||||||||||||
Travelocity | 2,685 | 3,571 | 6,810 | 14,367 | Total segments | 1,008,135 | 995,853 | 904,224 | ||||||||||||||||||||||||||||||||||
Corporate | (216,812 | ) | (209,224 | ) | (184,061 | ) | ||||||||||||||||||||||||||||||||||||
Total segments | 55,917 | 62,106 | 168,452 | 198,523 | ||||||||||||||||||||||||||||||||||||||
Corporate | 3,890 | 5,174 | 19,535 | 18,907 | Total | $ | 791,323 | $ | 786,629 | $ | 720,163 | |||||||||||||||||||||||||||||||
Total | $ | 59,807 | $ | 67,280 | $ | 187,987 | $ | 217,430 | Depreciation and amortization | |||||||||||||||||||||||||||||||||
Travel Network | $ | 52,507 | $ | 36,659 | $ | 33,705 | ||||||||||||||||||||||||||||||||||||
Airline and Hospitality Solutions | 77,320 | 52,010 | 31,930 | |||||||||||||||||||||||||||||||||||||||
Travelocity | 8,712 | 39,892 | 43,498 | |||||||||||||||||||||||||||||||||||||||
Total segments | 138,539 | 128,561 | 109,133 | |||||||||||||||||||||||||||||||||||||||
Corporate | 169,056 | 187,172 | 183,984 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 307,595 | $ | 315,733 | $ | 293,117 | ||||||||||||||||||||||||||||||||||||
Adjusted capital expenditures(c) | ||||||||||||||||||||||||||||||||||||||||||
Travel Network | $ | 69,357 | $ | 45,262 | $ | 54,451 | ||||||||||||||||||||||||||||||||||||
Airline and Hospitality Solutions | 170,860 | 163,754 | 96,751 | |||||||||||||||||||||||||||||||||||||||
Travelocity | 16,861 | 26,085 | 44,026 | |||||||||||||||||||||||||||||||||||||||
Total segments | 257,078 | 235,101 | 195,228 | |||||||||||||||||||||||||||||||||||||||
Corporate | 27,762 | 36,704 | 28,519 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 284,840 | $ | 271,805 | $ | 223,747 | ||||||||||||||||||||||||||||||||||||
Reconciliation of Adjusted EBITDA to Loss from Continuing Operations | (a) | The following tables set forth the reconciliation of Adjusted Gross Margin to operating income in our statement of operations (in thousands): | (a) | The following table sets forth the reconciliation of Adjusted Gross Margin to operating income (loss) in our statement of operations: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | (Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
Adjusted Gross Margin | $ | 358,354 | $ | 369,054 | $ | 1,044,076 | $ | 1,084,535 | Adjusted Gross Margin | $ | 1,419,047 | $ | 1,418,289 | $ | 1,333,754 | |||||||||||||||||||||||||||
Less adjustments: | Less Adjustments: | |||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 169,183 | 208,033 | 575,413 | 620,226 | Selling, general and administrative | 792,929 | 1,188,248 | 806,435 | ||||||||||||||||||||||||||||||||||
Impairment | — | 2,837 | — | 138,435 | Impairment | 138,435 | 573,180 | 185,240 | ||||||||||||||||||||||||||||||||||
Restructuring charges | 4,735 | 15,889 | 2,325 | 15,889 | Restructuring charges | 36,551 | — | — | ||||||||||||||||||||||||||||||||||
Cost of revenue adjustments: | Cost of revenue adjustments: | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization(1) | 47,252 | 49,421 | 157,146 | 150,441 | Depreciation and amortization(1) | 202,485 | 198,206 | 172,846 | ||||||||||||||||||||||||||||||||||
Amortization of upfront incentive consideration(2) | 10,388 | 9,385 | 33,177 | 28,736 | Amortization of upfront incentive consideration(2) | 36,649 | 36,527 | 37,748 | ||||||||||||||||||||||||||||||||||
Restructuring and other costs(4) | 4,865 | 2,582 | 10,016 | 4,521 | Restructuring and other costs(5) | 12,615 | 4,525 | 1,786 | ||||||||||||||||||||||||||||||||||
Litigation and taxes, including penalties(5) | 188 | 5,389 | 1,127 | 19,864 | Litigation and taxes, including penalties(6) | 20,921 | 22,187 | — | ||||||||||||||||||||||||||||||||||
Stock-based compensation | 2,172 | 544 | 5,618 | 816 | Stock-based compensation | 1,702 | 1,715 | 1,454 | ||||||||||||||||||||||||||||||||||
Amortization of Expedia SMA incentive payments | 2,875 | — | 7,625 | — | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 176,760 | $ | (606,299 | ) | $ | 128,245 | |||||||||||||||||||||||||||||||||||
Operating income | $ | 116,696 | $ | 74,974 | $ | 251,629 | $ | 105,607 | ||||||||||||||||||||||||||||||||||
(b) | The following tables set forth the reconciliation of Adjusted EBITDA to loss from continuing operations in our statement of operations: | |||||||||||||||||||||||||||||||||||||||||
(b) | The following tables set forth the reconciliation of Adjusted EBITDA to loss from continuing operations in our statement of operations (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | (Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Adjusted EBITDA | $ | 791,323 | $ | 786,629 | $ | 720,163 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 229,926 | $ | 201,349 | $ | 617,350 | $ | 583,963 | Less Adjustments: | |||||||||||||||||||||||||||||||||
Less adjustments: | Depreciation and amortization of property and equipment(1a) | 131,483 | 135,561 | 122,640 | ||||||||||||||||||||||||||||||||||||||
Impairment | — | 2,837 | — | 138,435 | Amortization of capitalized implementation costs(1b) | 35,551 | 20,855 | 11,365 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization of property and equipment(1a) | 39,524 | 32,936 | 122,409 | 97,687 | Amortization of upfront incentive consideration(2) | 36,649 | 36,527 | 37,748 | ||||||||||||||||||||||||||||||||||
Amortization of capitalized implementation costs(1b) | 9,084 | 8,437 | 27,111 | 27,038 | Interest expense, net | 274,689 | 232,450 | 174,390 | ||||||||||||||||||||||||||||||||||
Acquisition related amortization(1c) | 23,905 | 35,794 | 83,344 | 107,955 | Impairment(3) | 138,435 | 596,980 | 185,240 | ||||||||||||||||||||||||||||||||||
Amortization of upfront incentive consideration(2) | 10,388 | 9,385 | 33,177 | 28,736 | Acquisition related amortization(1c) | 143,765 | 162,517 | 162,312 | ||||||||||||||||||||||||||||||||||
Interest expense, net | 50,153 | 63,454 | 167,332 | 209,653 | Gain on sale of business and assets | — | (25,850 | ) | — | |||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | 33,538 | 12,181 | Loss on extinguishment of debt | 12,181 | — | — | ||||||||||||||||||||||||||||||||||
Other, net(3) | (565 | ) | 2,429 | (760 | ) | 1,099 | Other, net(4) | 6,724 | 1,385 | (1,156 | ) | |||||||||||||||||||||||||||||||
Restructuring and other costs(4) | 14,482 | 21,754 | 24,056 | 26,296 | Restructuring and other costs(5) | 59,052 | 6,776 | 12,986 | ||||||||||||||||||||||||||||||||||
Litigation and taxes, including penalties(5) | 4,440 | 8,579 | 12,497 | 31,543 | Litigation and taxes, including penalties(6) | 39,431 | 418,622 | 21,601 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | 5,472 | 2,686 | 22,434 | 5,446 | Stock-based compensation | 9,086 | 9,834 | 7,334 | ||||||||||||||||||||||||||||||||||
Management fees(6) | 193 | 2,126 | 23,701 | 7,347 | Management fees(7) | 8,761 | 7,769 | 7,191 | ||||||||||||||||||||||||||||||||||
Amortization of Expedia SMA incentive payments | 2,875 | — | 7,625 | — | (Benefit) provision for income taxes | (14,029 | ) | (195,071 | ) | 57,806 | ||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 30,956 | 7,861 | 27,878 | (5,229 | ) | |||||||||||||||||||||||||||||||||||||
Loss from continuing operations | $ | (90,455 | ) | $ | (621,726 | ) | $ | (79,294 | ) | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 39,019 | $ | 3,071 | $ | 33,008 | $ | (104,224 | ) | |||||||||||||||||||||||||||||||||
-1 | Depreciation and amortization expenses (see Note 2, Summary of Significant Accounting Policies for associated asset lives): | |||||||||||||||||||||||||||||||||||||||||
-1 | Depreciation and amortization expenses: | a. | Depreciation and amortization of property and equipment represents depreciation of property and equipment, including software developed for internal use. | |||||||||||||||||||||||||||||||||||||||
a. | Depreciation and amortization of property and equipment includes software developed for internal use. | b. | Amortization of capitalized implementation costs represents amortization of up-front costs to implement new customer contracts under our SaaS and hosted revenue model. | |||||||||||||||||||||||||||||||||||||||
b. | Amortization of capitalized implementation costs represents amortization of upfront costs to implement new customer contracts under our SaaS and hosted revenue model. | c. | Acquisition related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date and amortization of the excess basis in our underlying equity in joint ventures. | |||||||||||||||||||||||||||||||||||||||
c. | Acquisition related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date and amortization of the excess basis in our underlying equity in joint ventures. | -2 | Our Travel Network business at times provides upfront incentive consideration to travel agency subscribers at the inception or modification of a service contract, which are capitalized and amortized to cost of revenue over an average expected life of the service contract, generally over three to five years. Such consideration is made with the objective of increasing the number of clients or to ensure or improve customer loyalty. Such service contract terms are established such that the supplier and other fees generated over the life of the contract will exceed the cost of the incentive consideration provided up front. Such service contracts with travel agency subscribers require that the customer commit to achieving certain economic objectives and generally have terms requiring repayment of the upfront incentive consideration if those objectives are not met. | |||||||||||||||||||||||||||||||||||||||
-2 | Our Travel Network business at times makes upfront cash payments or other consideration to travel agency subscribers at the inception or modification of a service contract, which are capitalized and amortized over an average expected life of the service contract, generally over three to five years. Such consideration is made with the objective of increasing the number of clients or to ensure or improve customer loyalty. Such service contract terms are established such that the supplier and other fees generated over the life of the contract will exceed the cost of the incentive consideration provided up front. Such service contracts with travel agency subscribers require that the customer commit to achieving certain economic objectives and generally have terms requiring repayment of the upfront incentive consideration if those objectives are not met. | -3 | Represents impairment charges to assets (see Note 8, Goodwill and Intangible Assets) as well as $24 million in 2012, representing our share of impairment charges recorded by one of our equity method investments, Abacus. | |||||||||||||||||||||||||||||||||||||||
-3 | Other, net primarily represents foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency. | -4 | Other, net primarily represents foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency. | |||||||||||||||||||||||||||||||||||||||
-4 | Restructuring and other costs represents charges associated with business restructuring and associated changes implemented which resulted in severance benefits related to employee terminations, integration and facility opening or closing costs and other business reorganization costs. | -5 | Restructuring and other costs represents charges associated with business restructuring and associated changes implemented which resulted in severance benefits related to employee terminations, integration and facility opening or closing costs and other business reorganization costs. | |||||||||||||||||||||||||||||||||||||||
-5 | Litigation and taxes, including penalties represents charges or settlements associated with airline antitrust litigation as well as payments or reserves taken in relation to certain retroactive hotel occupancy and excise tax disputes (see Note 14, Contingencies). | -6 | Litigation and taxes, including penalties represents charges or settlements associated with airline antitrust litigation as well as payments or reserves taken in relation to certain retroactive hotel occupancy and excise tax disputes (see Note 20, Commitments and Contingencies). | |||||||||||||||||||||||||||||||||||||||
-6 | We paid an annual management fee to TPG and Silver Lake in an amount between (i) $5 million and (ii) $7 million, the actual amount of which is calculated based upon 1% of Adjusted EBITDA, earned by the company in such fiscal year up to a maximum of $7 million. In addition, the MSA provided for reimbursement of certain costs incurred by TPG and Silver Lake, which are included in this line item. The MSA was terminated in connection with our initial public offering. | -7 | We have been paying an annual management fee to TPG and Silver Lake in an amount equal to the lesser of (i) 1% of our Adjusted EBITDA and (ii) $7 million. This also includes reimbursement of certain costs incurred by TPG and Silver Lake. | |||||||||||||||||||||||||||||||||||||||
Reconciliation of Consolidated Adjusted Capital Expenditures | (c) | Includes capital expenditures and capitalized implementation costs as summarized below (in thousands): | (c) | Includes capital expenditures and capitalized implementation costs as summarized below: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | (Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
Additions to property and equipment | $ | 49,802 | $ | 57,257 | $ | 160,385 | $ | 168,744 | Additions to property and equipment | $ | 226,026 | $ | 193,262 | $ | 164,638 | |||||||||||||||||||||||||||
Capitalized implementation costs | 10,005 | 10,023 | 27,602 | 48,686 | Capitalized implementation costs | 58,814 | 78,543 | 59,109 | ||||||||||||||||||||||||||||||||||
Adjusted Capital Expenditures | $ | 59,807 | $ | 67,280 | $ | 187,987 | $ | 217,430 | Adjusted capital expenditures | $ | 284,840 | $ | 271,805 | $ | 223,747 | |||||||||||||||||||||||||||
Revenues and Long-Lived Assets Excluding Goodwill and intangible Assets by Geographic Region | Our revenues and long-lived assets, excluding goodwill and intangible assets, by geographic region are summarized below. Revenues are attributed to countries based on the location of the customer. | |||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||
United States | $ | 1,765,699 | $ | 1,857,771 | $ | 1,754,830 | ||||||||||||||||||||||||||||||||||||
Europe | 501,953 | 470,112 | 451,734 | |||||||||||||||||||||||||||||||||||||||
All other | 781,873 | 646,481 | 649,397 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 3,049,525 | $ | 2,974,364 | $ | 2,855,961 | ||||||||||||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Long-lived assets | ||||||||||||||||||||||||||||||||||||||||||
United States | $ | 472,517 | $ | 394,625 | ||||||||||||||||||||||||||||||||||||||
Europe | 10,269 | 7,909 | ||||||||||||||||||||||||||||||||||||||||
All other | 15,737 | 5,862 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 498,523 | $ | 408,396 | ||||||||||||||||||||||||||||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations [Abstract] | |||||
Allocation of Purchase Price and Amounts Allocated to Goodwill | The following table summarizes the allocation of the purchase price and the amounts allocated to goodwill (in thousands): | ||||
Patents (10 year useful life) | $ | 59,400 | |||
Customer and contractual relationships (10 year useful life) | 10,700 | ||||
Trademarks (5 year useful life) | 800 | ||||
Goodwill | 35,737 | ||||
Accounts receivable, net | 8,059 | ||||
Other net assets acquired | 1,458 | ||||
Total purchase price | $ | 116,154 | |||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Condensed Consolidated Statements of Operations | Abacus’ Condensed Consolidated Statements of Operations are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Amounts in thousands) | |||||||||||||
Revenue | $ | 335,255 | $ | 320,069 | $ | 261,952 | |||||||
Cost of sales | 205,505 | 200,212 | 123,227 | ||||||||||
General and administrative costs | 43,157 | 42,219 | 25,382 | ||||||||||
Other expenses | 37,306 | 32,367 | 19,497 | ||||||||||
Operating income | 49,287 | 45,271 | 93,846 | ||||||||||
Impairment losses, net | — | — | (3,057 | ) | |||||||||
Gain on disposal of an associate | — | 5,656 | — | ||||||||||
Impairment of goodwill | (100 | ) | (65,809 | ) | — | ||||||||
Other non-operating costs | 3,127 | 6,174 | 7,214 | ||||||||||
Income before taxes | 52,314 | (8,708 | ) | 98,003 | |||||||||
Income tax expense | 9,946 | 11,658 | 18,551 | ||||||||||
Net income (loss) | $ | 42,368 | $ | (20,366 | ) | $ | 79,452 | ||||||
Noncontrolling interest | (75 | ) | 130 | 103 | |||||||||
Net income (loss) attributable to Abacus | $ | 42,443 | $ | (20,496 | ) | $ | 79,349 | ||||||
Condensed Consolidated Balance Sheets | Abacus’ Condensed Consolidated Balance Sheets are as follows: | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Assets | |||||||||||||
Current assets | |||||||||||||
Cash and cash equivalents | $ | 107,729 | $ | 96,194 | |||||||||
Accounts receivable, net | 43,679 | 51,746 | |||||||||||
Other receivables, net | 61,481 | 53,219 | |||||||||||
Total current assets | 212,889 | 201,159 | |||||||||||
Property and equipment, net | 32,167 | 28,130 | |||||||||||
Goodwill and intangible assets, net | 2,505 | 2,505 | |||||||||||
Other assets, net | 41,647 | 46,788 | |||||||||||
Total assets | $ | 289,208 | $ | 278,582 | |||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Liabilities and stockholders’ equity | |||||||||||||
Current liabilities | |||||||||||||
Accounts payable | $ | 19,820 | $ | 30,463 | |||||||||
Other accrued liabilities | 103,887 | 91,270 | |||||||||||
Provision for taxation | 47,073 | 48,277 | |||||||||||
Total current liabilities | 170,780 | 170,010 | |||||||||||
Deferred income taxes | 7,474 | 5,733 | |||||||||||
Stockholders’ equity | |||||||||||||
Share capital | 56,580 | 56,580 | |||||||||||
Retained earnings | 54,159 | 45,746 | |||||||||||
Noncontrolling interest | 215 | 513 | |||||||||||
Total stockholders’ equity | 110,954 | 102,839 | |||||||||||
Total liabilities and stockholders’ equity | $ | 289,208 | $ | 278,582 | |||||||||
Condensed Consolidated Statements of Cash Flows | Abacus’ Condensed Consolidated Statements of Cash Flows are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Amounts in thousands) | |||||||||||||
Operating Activities | |||||||||||||
Cash provided by operating activities | $ | 57,899 | $ | 9,214 | $ | 48,833 | |||||||
Investing Activities | |||||||||||||
Cash used in investing activities | (16,154 | ) | (29,183 | ) | (8,560 | ) | |||||||
Financing Activities | |||||||||||||
Dividends paid | (30,000 | ) | (60,486 | ) | (35,000 | ) | |||||||
Other financing activities | (210 | ) | (156 | ) | (109 | ) | |||||||
Cash used in financing activities | (30,210 | ) | (60,642 | ) | (35,109 | ) | |||||||
Increase (decrease) in cash and cash equivalents | 11,535 | (80,611 | ) | 5,164 | |||||||||
Cash and cash equivalents at beginning of period | 96,194 | 176,805 | 171,641 | ||||||||||
Cash and cash equivalents at end of period | $ | 107,729 | $ | 96,194 | $ | 176,805 | |||||||
Summary of Related Party Transactions | Our related party transactions with Abacus are summarized and presented in the table below. | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Amounts in thousands) | |||||||||||||
Revenue earned from Abacus | $ | 91,998 | $ | 71,957 | $ | 52,073 | |||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Receivable from Abacus | $ | 29,377 | $ | 13,939 | |||||||||
Payable to Abacus for Economic Benefit Transfer | (8,648 | ) | (8,452 | ) | |||||||||
Current deferred revenue related to Abacus data processing | (2,571 | ) | (2,571 | ) | |||||||||
Long-term deferred revenue related to Abacus data processing | (12,857 | ) | (15,428 | ) | |||||||||
Related party receivable (liability), net | $ | 5,301 | $ | (12,512 | ) | ||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Change in Carrying Amount of Goodwill | Goodwill—Changes in the carrying amount of goodwill during the year ended December 31, 2013 and December 31, 2012 are as follows: | ||||||||||||||||||||||||||||||||
Continuing Operations | Discontinued Operations | ||||||||||||||||||||||||||||||||
Travel | Airline and | Travelocity | Total | Gross | Accumulated | Total | Total | ||||||||||||||||||||||||||
Network | Hospitality | Impairment | Goodwill | ||||||||||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 1,813,215 | $ | 285,754 | $ | 273,406 | $ | 2,372,375 | $ | 94,555 | $ | (39,573 | ) | $ | 54,982 | $ | 2,427,357 | ||||||||||||||||
Acquired | — | 39,713 | — | 39,713 | — | — | — | 39,713 | |||||||||||||||||||||||||
Adjustments(1) | (153 | ) | 22 | — | (131 | ) | 595 | — | 595 | 464 | |||||||||||||||||||||||
Impairment | — | — | (128,708 | ) | (128,708 | ) | — | — | — | (128,708 | ) | ||||||||||||||||||||||
Held for Sale | (578 | ) | — | — | (578 | ) | — | (7,420 | ) | (7,420 | ) | (7,998 | ) | ||||||||||||||||||||
Balance as of December 31, 2012 | 1,812,484 | 325,489 | 144,698 | 2,282,671 | 95,150 | (46,993 | ) | 48,157 | 2,330,828 | ||||||||||||||||||||||||
Acquired | 399 | — | — | 399 | — | — | — | 399 | |||||||||||||||||||||||||
Adjustments(1) | (197 | ) | — | — | (197 | ) | — | — | — | (197 | ) | ||||||||||||||||||||||
Impairment | — | — | (135,598 | ) | (135,598 | ) | — | — | — | (135,598 | ) | ||||||||||||||||||||||
Disposals | — | — | (9,100 | ) | (9,100 | ) | (48,157 | ) | — | (48,157 | ) | (57,257 | ) | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 1,812,686 | $ | 325,489 | $ | — | $ | 2,138,175 | $ | 46,993 | $ | (46,993 | ) | $ | — | $ | 2,138,175 | ||||||||||||||||
-1 | Includes net foreign currency effects during the year. | ||||||||||||||||||||||||||||||||
Schedule of Amortization of Intangible Assets | The impairments discussed above are reflected in accumulated amortization as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||||
Trademarks and brandnames | $ | 868,632 | $ | (545,597 | ) | $ | 323,035 | $ | 868,591 | $ | (525,358 | ) | $ | 343,233 | |||||||||||||||||||
Acquired customer relationships | 692,863 | (471,597 | ) | 221,266 | 693,863 | (407,331 | ) | 286,532 | |||||||||||||||||||||||||
Purchased technology | 468,639 | (392,013 | ) | 76,626 | 468,389 | (338,635 | ) | 129,754 | |||||||||||||||||||||||||
Non-compete agreements | 13,325 | (12,894 | ) | 431 | 13,325 | (12,390 | ) | 935 | |||||||||||||||||||||||||
Acquired contracts, supplier and distributor agreements | 26,600 | (13,400 | ) | 13,200 | 25,600 | (10,800 | ) | 14,800 | |||||||||||||||||||||||||
Total intangible assets | $ | 2,070,059 | $ | (1,435,501 | ) | $ | 634,558 | $ | 2,069,768 | $ | (1,294,514 | ) | $ | 775,254 | |||||||||||||||||||
Schedule of Estimated Amortization of Intangible Assets Subject to Amortization | Estimated amortization expense related to intangible assets subject to amortization for each of the five succeeding years and beyond is as follows (in thousands): | ||||||||||||||||||||||||||||||||
2014 | $ | 104,399 | |||||||||||||||||||||||||||||||
2015 | 92,452 | ||||||||||||||||||||||||||||||||
2016 | 92,474 | ||||||||||||||||||||||||||||||||
2017 | 47,111 | ||||||||||||||||||||||||||||||||
2018 | 31,310 | ||||||||||||||||||||||||||||||||
2019 and thereafter | 266,812 | ||||||||||||||||||||||||||||||||
Total | $ | 634,558 | |||||||||||||||||||||||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Schedule of Other Receivables | Other receivables consisted of the following: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(Amounts in thousands) | |||||||||
Value added tax receivable, net | $ | 23,237 | $ | 18,795 | |||||
Federal income tax receivable | 2,024 | 16,634 | |||||||
Other | 4,250 | 6,905 | |||||||
Other receivables, net | $ | 29,511 | $ | 42,334 | |||||
Components of Property and Equipment | Our property and equipment consists of the following items: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(Amounts in thousands) | |||||||||
Buildings & leasehold improvements | $ | 156,086 | $ | 150,424 | |||||
Furniture, fixtures & equipment | 25,749 | 24,558 | |||||||
Computer equipment | 275,378 | 253,336 | |||||||
Software developed for internal use | 764,226 | 583,051 | |||||||
1,221,439 | 1,011,369 | ||||||||
Accumulated depreciation and amortization | (722,916 | ) | (602,973 | ) | |||||
Property and equipment, net | $ | 498,523 | $ | 408,396 | |||||
Schedule of Other Assets | Other assets consisted of the following: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(Amounts in thousands) | |||||||||
Capitalized implementation costs, net | $ | 175,886 | $ | 152,837 | |||||
Long-term deferred income taxes | 34,794 | 3,360 | |||||||
Deferred customer discounts | 90,476 | 47,711 | |||||||
Deferred upfront incentive consideration | 81,581 | 69,660 | |||||||
Other | 86,806 | 82,978 | |||||||
Other assets, net | $ | 469,543 | $ | 356,546 | |||||
Schedule of Other Noncurrent Liabilities | Other noncurrent liabilities consisted of the following: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(Amounts in thousands) | |||||||||
Litigation settlement liability and related deferred revenue | $ | 98,311 | $ | 127,176 | |||||
Deferred revenue | 50,576 | 60,041 | |||||||
Pension and other postretirement benefits | 55,032 | 109,170 | |||||||
Other | 59,263 | 73,775 | |||||||
Other noncurrent liabilities | $ | 263,182 | $ | 370,162 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Summary of Components of Income Taxes | The components of pre-tax income, generally based on the jurisdiction of the legal entity, were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Amounts in thousands) | |||||||||||||
Components of pre-tax income | |||||||||||||
Domestic | $ | (185,391 | ) | $ | (1,077,917 | ) | $ | (42,530 | ) | ||||
Foreign | 80,907 | 261,120 | 21,042 | ||||||||||
$ | (104,484 | ) | $ | (816,797 | ) | $ | (21,488 | ) | |||||
Summary of Provision for Income Tax Relating to Continuing Operations | The provision for income taxes relating to continuing operations consists of the following: | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Amounts in thousands) | |||||||||||||
Current portion: | |||||||||||||
Federal | $ | 19,822 | $ | 7,383 | $ | 1,812 | |||||||
State and Local | 10,902 | 6,757 | 2,772 | ||||||||||
Non U.S. | 19,937 | 23,062 | 18,813 | ||||||||||
Total current | 50,661 | 37,202 | 23,397 | ||||||||||
Deferred portion: | |||||||||||||
Federal | (62,557 | ) | (224,424 | ) | 30,780 | ||||||||
State and Local | (2,772 | ) | (10,364 | ) | 889 | ||||||||
Non U.S. | 639 | 2,515 | 2,740 | ||||||||||
Total deferred | (64,690 | ) | (232,273 | ) | 34,409 | ||||||||
Total (benefit) provision for income taxes | $ | (14,029 | ) | $ | (195,071 | ) | $ | 57,806 | |||||
Summary of Income Taxes Relating to Continuing Operation and Statutory Federal Income Tax Rate | The provision for income taxes relating to continuing operations differs from amounts computed at the statutory federal income tax rate as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Amounts in thousands) | |||||||||||||
Income tax provision at statutory federal income tax rate | $ | (36,569 | ) | $ | (285,879 | ) | $ | (7,521 | ) | ||||
State income taxes, net of federal benefit | 5,340 | (246 | ) | 2,445 | |||||||||
Impact of non U.S. taxing jurisdictions, net | 5,565 | (119 | ) | (2,690 | ) | ||||||||
Goodwill impairment | 33,454 | 28,630 | 64,203 | ||||||||||
Impact of sale of business | (11,798 | ) | (15,209 | ) | — | ||||||||
Write off of Intercompany Debt | — | (16,315 | ) | — | |||||||||
Tax loss attributable to non controlling interest | — | 19,694 | 2,570 | ||||||||||
Excise tax penalties | 4,333 | — | — | ||||||||||
Valuation allowance | (16,010 | ) | 72,261 | — | |||||||||
Other, net | 1,656 | 2,112 | (1,201 | ) | |||||||||
Total (benefit) provision for income taxes | $ | (14,029 | ) | $ | (195,071 | ) | $ | 57,806 | |||||
Summary of Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities are presented in the table below. Certain deferred tax balances as of December 31, 2012 have been revised to reflect actual amounts included in our return; such revisions were not material. | ||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses | $ | 34,686 | $ | 97,743 | |||||||||
Employee benefits other than pension | 23,932 | 10,496 | |||||||||||
Deferred revenue | 67,601 | 69,991 | |||||||||||
Pension obligations | 18,613 | 39,720 | |||||||||||
Tax loss carryforwards | 376,427 | 714,175 | |||||||||||
Non U.S. operations | 33,315 | 10,236 | |||||||||||
Unrealized gains and losses | (6,794 | ) | 8,408 | ||||||||||
Incentive consideration | (1,101 | ) | (791 | ) | |||||||||
Tax credit carryforwards | 29,312 | 8,341 | |||||||||||
TVL Common suspended loss | 24,718 | 24,400 | |||||||||||
Other | 14,531 | 15,277 | |||||||||||
Total deferred tax assets | 615,240 | 997,996 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | (7,844 | ) | (4,901 | ) | |||||||||
Software developed for internal use | (190,362 | ) | (149,242 | ) | |||||||||
Intangible assets | (89,895 | ) | (119,585 | ) | |||||||||
Write off of Intercompany Debt | — | (410,289 | ) | ||||||||||
Currency translation adjustment | (8,085 | ) | (9,243 | ) | |||||||||
Total deferred tax liabilities | (296,186 | ) | (693,260 | ) | |||||||||
Valuation allowance | (253,082 | ) | (282,091 | ) | |||||||||
Net deferred tax asset | $ | 65,972 | $ | 22,645 | |||||||||
Summary of Reconciliation of Unrecognized Tax Benefit | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Amounts in thousands) | |||||||||||||
Balance at beginning of year | $ | 54,016 | $ | 39,080 | $ | 38,072 | |||||||
Additions for tax positions taken in the current year | 10,874 | 16,367 | 3,016 | ||||||||||
Additions for tax positions of prior years | 5,572 | 3,584 | 1,050 | ||||||||||
Reductions for tax positions of prior years | (196 | ) | (3,113 | ) | (1,691 | ) | |||||||
Reductions for tax positions of expired statute of limitations | (3,573 | ) | (1,902 | ) | (1,367 | ) | |||||||
Settlements | (5,452 | ) | — | — | |||||||||
Balance at end of year | $ | 61,241 | $ | 54,016 | $ | 39,080 | |||||||
Options_and_Other_EquityBased_1
Options and Other Equity-Based Awards (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Restricted Stock Activities | Restricted stock activities for the year ended December 31, 2013 were as follows: | ||||||||||||||||||||||||
Sabre Corporation Restricted Stock | Quantity | Weighted-Average | |||||||||||||||||||||||
Fair Value Per | |||||||||||||||||||||||||
Award | |||||||||||||||||||||||||
Restricted stock, beginning of year | 236,127 | $ | 8.47 | ||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||
Vested | (118,063 | ) | 8.47 | ||||||||||||||||||||||
Restricted stock, end of year | 118,064 | $ | 8.47 | ||||||||||||||||||||||
Performance Shares [Member] | |||||||||||||||||||||||||
Weighted Average Assumptions Used to estimate Fair Value of Stock Options Granted | The fair value of the performance-based stock options granted was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, 2008 | |||||||||||||||||||||||||
Exercise price | $ | 5 | |||||||||||||||||||||||
Average risk-free interest rate | 4.15 | % | |||||||||||||||||||||||
Expected life (in years) | 6.85 | ||||||||||||||||||||||||
Implied volatility | 36.4 | % | |||||||||||||||||||||||
Weighted-average fair value | $ | 1.81 | |||||||||||||||||||||||
Share-based Payments Activities | Performance-based share activities for the year ended December 31, 2013 were as follows: | ||||||||||||||||||||||||
Sovereign MEIP Performance-based Stock Options | Options | Weighted-Average | |||||||||||||||||||||||
Exercise Price | |||||||||||||||||||||||||
Outstanding and Nonvested at December 31, 2012 | 776,037 | $ | 5 | ||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||
Cancelled | — | — | |||||||||||||||||||||||
Outstanding and Nonvested at December 31, 2013 | 776,037 | $ | 5 | ||||||||||||||||||||||
Time Based Option [Member] | |||||||||||||||||||||||||
Weighted Average Assumptions Used to estimate Fair Value of Stock Options Granted | The fair value of the stock options granted was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: | ||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
Sovereign 2012 MEIP | |||||||||||||||||||||||||
Exercise price | $ | 11.91 | |||||||||||||||||||||||
Average risk-free interest rate | 1.53 | % | |||||||||||||||||||||||
Expected life (in years) | 6.11 | ||||||||||||||||||||||||
Implied volatility | 30.75 | % | |||||||||||||||||||||||
Weighted-average estimated fair value | $ | 3.89 | |||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||
Sovereign 2012 MEIP | TVL.com SOA | Tandem SARs(1) | Sovereign MEIP | ||||||||||||||||||||||
Exercise price | $ | 9.96 | $ | 0.12 | $ | 1.45 | $ | 8.41 | |||||||||||||||||
Average risk-free interest rate | 0.93 | % | 1.53 | % | 1.02 | % | 1.41 | % | |||||||||||||||||
Expected life (in years) | 6.44 | 6.44 | 6.11 | 6.44 | |||||||||||||||||||||
Implied volatility | 31.42 | % | 45 | % | 45.02 | % | 35.45 | % | |||||||||||||||||
Weighted-average estimated fair value | $ | 3.29 | $ | 0.04 | $ | 0.64 | $ | 3.17 | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||
TVL.com SOA | Tandem SARs(1) | Sovereign MEIP | |||||||||||||||||||||||
Exercise price | $ | 0.16 | $ | 1.74 | $ | 8.59 | |||||||||||||||||||
Average risk-free interest rate | 2.07 | % | 2.57 | % | 1.88 | % | |||||||||||||||||||
Expected life (in years) | 6.44 | 6.44 | 6.44 | ||||||||||||||||||||||
Implied volatility | 42.82 | % | 42.5 | % | 35.9 | % | |||||||||||||||||||
Weighted-average estimated fair value | $ | 0.06 | $ | 0.61 | $ | 3.36 | |||||||||||||||||||
Share-based Payments Activities | Time-based share activities for the year ended December 31, 2013 were as follows: | ||||||||||||||||||||||||
Sovereign MEIP | Sovereign 2012 MEIP | ||||||||||||||||||||||||
Stock Options | Stock Options | ||||||||||||||||||||||||
Weighted-Average | Weighted-Average | ||||||||||||||||||||||||
Quantity | Exercise | Remaining | Quantity | Exercise | Remaining | ||||||||||||||||||||
Price | Contractual | Price | Contractual | ||||||||||||||||||||||
Term (years) | Term (years) | ||||||||||||||||||||||||
Outstanding at December 31, 2012 | 17,235,250 | $ | 4.84 | 5.68 | 1,505,225 | $ | 9.96 | 8.92 | |||||||||||||||||
Granted | — | — | — | 2,910,621 | 11.91 | — | |||||||||||||||||||
Exercised | (596,285 | ) | 4.92 | — | — | — | — | ||||||||||||||||||
Cancelled | (987,896 | ) | 5.14 | — | (153,500 | ) | 10.18 | — | |||||||||||||||||
Outstanding at December 31, 2013 | 15,651,069 | 4.81 | 4.66 | 4,262,346 | 11.29 | 8.18 | |||||||||||||||||||
Vested and exercisable at December 31, 2013 | 14,170,926 | $ | 4.59 | 4.63 | 485,546 | $ | 10.98 | 9.14 | |||||||||||||||||
TVL.com SOA | Travelocity Equity 2012 | ||||||||||||||||||||||||
Time-based Stock Options | Tandem SARs | ||||||||||||||||||||||||
Weighted-Average | Weighted-Average | ||||||||||||||||||||||||
Quantity | Exercise | Remaining | Quantity | Exercise | Remaining | ||||||||||||||||||||
Price | Contractual | Price | Contractual | ||||||||||||||||||||||
Term (years) | Term (years) | ||||||||||||||||||||||||
Outstanding at December 31, 2012 | 1,960,231 | $ | 0.43 | 7.59 | 21,607,122 | $ | 1.45 | 7.38 | |||||||||||||||||
Cancelled | (475,701 | ) | 0.48 | — | (3,487,238 | ) | 1.45 | — | |||||||||||||||||
Outstanding at December 31, 2013 | 1,484,530 | 0.41 | 6.66 | 18,119,884 | 1.45 | 6.38 | |||||||||||||||||||
Vested and exercisable at December 31, 2013 | 1,009,904 | $ | 0.52 | 6.56 | — | $ | — | — |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Future Minimum Payments under Contractual Obligations | At December 31, 2013, future minimum payments required under the Amended and Restated Credit Agreement, 2016 Notes and 2019 Notes, the mortgage facility, operating lease agreements with terms in excess of one year for facilities, equipment and software licenses and other significant contractual cash obligations were as follows: | ||||||||||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||||||||||
Contractual Obligations | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Total debt(1) | $ | 320,662 | $ | 315,929 | $ | 726,845 | $ | 360,459 | $ | 244,391 | $ | 2,855,934 | $ | 4,824,220 | |||||||||||||||
Headquarters mortgage(2) | 5,984 | 5,984 | 5,984 | 80,895 | — | — | 98,847 | ||||||||||||||||||||||
Operating lease obligations(3) | 31,450 | 27,217 | 23,363 | 15,435 | 9,668 | 25,789 | 132,922 | ||||||||||||||||||||||
IT outsourcing agreement(4) | 165,983 | 156,492 | 135,307 | 99,305 | — | — | 557,087 | ||||||||||||||||||||||
Purchase orders(5) | 137,456 | 2,146 | 1,565 | — | — | — | 141,167 | ||||||||||||||||||||||
Letters of credit(6) | 65,238 | 128 | 1,621 | — | — | 151 | 67,138 | ||||||||||||||||||||||
WNS agreement(7) | 23,777 | 24,910 | — | — | — | — | 48,687 | ||||||||||||||||||||||
Other purchase obligations(8) | 39,175 | — | — | — | — | — | 39,175 | ||||||||||||||||||||||
Unrecognized tax benefits(9) | — | — | — | — | — | — | 66,620 | ||||||||||||||||||||||
Total contractual cash obligations(10) | $ | 789,725 | $ | 532,806 | $ | 894,685 | $ | 556,094 | $ | 254,059 | $ | 2,881,874 | $ | 5,975,863 | |||||||||||||||
-1 | Includes all interest and principal related to the 2016 Notes and 2019 Notes. Also includes all interest and principal related to borrowings under the Amended and Restated Credit Agreement, which will mature in 2017 and 2019 and the Incremental Term Facility, which will mature in 2017. We are required to pay a percentage of the excess cash flow generated each year to our lenders which is not reflected in the table above. Interest on the term loan is based on the LIBOR rate plus a base margin and includes the effect of interest rate swaps. For purposes of this table, we have used projected LIBOR rates for all future periods (see Note 11, Debt). | ||||||||||||||||||||||||||||
-2 | Includes all interest and principal related to $85 million mortgage facility, which matures on March 1, 2017 (see Note 11, Debt). | ||||||||||||||||||||||||||||
-3 | We lease approximately two million square feet of office space in 97 locations in 48 countries. Lease payment escalations are based on fixed annual increases, local consumer price index changes or market rental reviews. We have renewal options of various term lengths at 65 locations, and we have no purchase options and no restrictions imposed by our leases concerning dividends or additional debt. | ||||||||||||||||||||||||||||
-4 | Represents minimum amounts due to Hewlett-Packard under the terms of an outsourcing agreement through which HP manages a significant portion of our information technology systems. | ||||||||||||||||||||||||||||
-5 | Purchase obligations represent an estimate of all open purchase orders and contractual obligations in the ordinary course of business for which we have not received the goods or services as of December 31, 2013. Although open purchase orders are considered enforceable and legally binding, the terms generally allow us the option to cancel, reschedule and adjust our requirements based on our business needs prior to the delivery of goods or performance of services. | ||||||||||||||||||||||||||||
-6 | Our letters of credit consist of stand-by letters of credit, underwritten by a group of lenders, which we primarily issue for certain regulatory purposes as well as to certain hotel properties to secure our payment for hotel room transactions. The contractual expiration dates of these letters of credit are shown in the table above. There were no claims made against any stand-by letters of credit during the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||||||
-7 | Represents expected payments to WNS Global Services, an entity to which we outsource a portion of our Travelocity contact center operations and back-office fulfillment though 2015. The expected payments are based upon current and historical transactions. | ||||||||||||||||||||||||||||
-8 | Consists primarily of minimum payments due under various marketing agreements, management services monitoring fees and media strategy, planning and placement agreements. | ||||||||||||||||||||||||||||
-9 | [Unrecognized tax benefits include associated interest and penalties. The timing of related cash payments for substantially all of these liabilities is inherently uncertain because the ultimate amount and timing of such liabilities is affected by factors which are variable and outside our control.] | ||||||||||||||||||||||||||||
-10 | Excludes pension obligations; see Note 9, Pension and Other Postretirement Benefit Plans. | ||||||||||||||||||||||||||||
Rent Expense for Continuing Operations | The following table presents rent expense for continuing operations for each of the three years ended December 31, 2013, 2012, and 2011: | ||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Rent expense | $ | 40,474 | $ | 36,385 | $ | 39,846 | |||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Sublease rent | — | — | (3,574 | ) | |||||||||||||||||||||||||
Total rent expense | $ | 40,474 | $ | 36,385 | $ | 36,272 | |||||||||||||||||||||||
General_Information_Additional
General Information - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Mar. 20, 2014 | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 7-May-14 | Apr. 23, 2014 | Apr. 25, 2014 | Apr. 29, 2014 | Apr. 24, 2014 | |
Segment | Segment | |||||||||||||
General Information Disclosures [Line Items] | ||||||||||||||
Number of business segments | 3 | 3 | ||||||||||||
Net proceeds from initial public offer | $672,137,000 | |||||||||||||
Share based compensation arrangement by share based payment award options exercise price | $16.68 | |||||||||||||
Number of performance-based and time-based restricted stock units, granted | 2,298,478 | |||||||||||||
Stock compensation expense | 7,000,000 | 2,172,000 | 544,000 | 5,618,000 | 816,000 | 1,702,000 | 1,715,000 | 1,454,000 | ||||||
Senior secured notes due 2019 [Member] | ||||||||||||||
General Information Disclosures [Line Items] | ||||||||||||||
Early repayment of senior debt paid with IPO proceeds | 320,000,000 | |||||||||||||
IPO [Member] | ||||||||||||||
General Information Disclosures [Line Items] | ||||||||||||||
Shares issued | 39,200,000 | |||||||||||||
Initial public offer, price per share | $16 | |||||||||||||
Net proceeds from initial public offer | 672,000,000 | |||||||||||||
Management fee paid with IPO proceeds | 21,000,000 | |||||||||||||
Underwriters Overallotment Option [Member] | ||||||||||||||
General Information Disclosures [Line Items] | ||||||||||||||
Shares issued | 5,880,000 | |||||||||||||
Time Based Options [Member] | ||||||||||||||
General Information Disclosures [Line Items] | ||||||||||||||
Number of time based options granted to purchase common stock | 1,541,627 | |||||||||||||
2019 [Member] | Senior secured notes due 2019 [Member] | ||||||||||||||
General Information Disclosures [Line Items] | ||||||||||||||
Early repayment of senior debt paid with IPO proceeds | 320,000,000 | |||||||||||||
Redemption amount of principal (debt instrument) | 108.50% | |||||||||||||
Debt redemption premium paid with IPO proceeds | 27,000,000 | |||||||||||||
Debt unpaid interest paid with IPO proceeds | 13,000,000 | |||||||||||||
Minimum [Member] | ||||||||||||||
General Information Disclosures [Line Items] | ||||||||||||||
Management fee paid with IPO proceeds | 5,000,000 | 5,000,000 | ||||||||||||
Contract terms for software usage by customers | 3 years | |||||||||||||
Maximum [Member] | ||||||||||||||
General Information Disclosures [Line Items] | ||||||||||||||
Management fee paid with IPO proceeds | 7,000,000 | 7,000,000 | ||||||||||||
Contract terms for software usage by customers | 10 years | |||||||||||||
Senior Secured Term Loan C [Member] | Senior secured notes due 2019 [Member] | ||||||||||||||
General Information Disclosures [Line Items] | ||||||||||||||
Early repayment of senior debt paid with IPO proceeds | $296,000,000 | $90,000,000 | $207,000,000 | |||||||||||
Temporary Equity [Member] | ||||||||||||||
General Information Disclosures [Line Items] | ||||||||||||||
Common stock issued for redemption of preferred shares | 40,343,529 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Aug. 01, 2012 | Dec. 31, 2012 | Sep. 11, 2014 | Aug. 31, 2013 | |
Acquisition | Acquisition | ||||||
Business Acquisition [Line Items] | |||||||
Total purchase price | $11,000,000 | ||||||
Business Combination Contingent Consideration Arrangements Description | contingent consideration, based on management's best estimate of fair value and future performance results on the acquisition date and is to be paid in 24 months following the acquisition date | Contingent Consideration-On August 1, 2012, we acquired all of the outstanding stock and ownership interest of PRISM (see Note 3, Acquisitions). Included in the purchase price is contingent consideration, based on management's best estimate of fair value and future performance results on the acquisition date and is to be paid in 24 months following the acquisition date. | |||||
Number of acquisition | 2 | ||||||
Prism [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired assets, Cash consideration | 30,000,000 | 66,000,000 | |||||
Total purchase price | 116,154,000 | ||||||
Business Acquisition, contingent consideration | 54,000,000 | 30,000,000 | |||||
Business Acquisition, additional consideration | 6,000,000 | ||||||
Business Combination Contingent Consideration Arrangements Description | Additionally, $6 million is also due in two installments of $3 million each at 12 and 24 months, which is contingent upon employment of key employees and is being expensed over the relevant periods of employment and therefore is not considered a part of the purchase price consideration. We made the first holdback and contingent employment payments totaling $30 million in August 2013. | ||||||
Prism [Member] | Holdback payment primarily for indemnification purposes due in 12 months following the acquisition date [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, contingent consideration | 27,000,000 | ||||||
Prism [Member] | Contingent consideration which is based on contractually determined performance measures due in 24 months following the acquisition date [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, contingent consideration | 27,000,000 | ||||||
Prism [Member] | Contingent Consideration [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, number of installments | 2 | ||||||
Prism [Member] | At 12 months contingent upon employment of key employees [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, additional consideration | 3,000,000 | ||||||
Prism [Member] | At 24 months contingent upon employment of key employees [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, additional consideration | 3,000,000 | ||||||
Prism [Member] | Additional Consideration [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, number of installments | 2 | ||||||
Other Acquisitions [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase price | 6,000,000 | ||||||
Number of acquisition | 1 | ||||||
Genares Worldwide Reservation Services Ltd [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition agreement date | 11-Sep-14 | ||||||
Number of hotel properties | 2,300 | ||||||
Acquired assets, Cash consideration | 32,000,000 | ||||||
Preliminary allocation of purchase price includes goodwill deductible for tax purposes | 14,000,000 | ||||||
Purchase price allocation, other intangible assets | 17,000,000 | ||||||
Purchase price allocation, net assets acquired | 1,000,000 | ||||||
Genares Worldwide Reservation Services Ltd [Member] | Acquired customer relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price allocation, other intangible assets | 14,000,000 | ||||||
Other Intangible asset, useful life | 10 years | ||||||
Genares Worldwide Reservation Services Ltd [Member] | Non-compete agreements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price allocation, other intangible assets | $2,000,000 | ||||||
Other Intangible asset, useful life | 5 years |
Discontinued_Operations_and_Di2
Discontinued Operations and Dispositions - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 18, 2013 | Jul. 31, 2012 | Sep. 30, 2014 | Mar. 31, 2013 | Feb. 24, 2012 | Feb. 28, 2014 | |
Payments | Subsidiaries | Payments | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain (loss) on sale of businesses | ($27,708,000) | ($27,709,000) | ($8,266,000) | |||||||
Proceeds from sale of assets | 10,000,000 | 10,000,000 | 27,915,000 | |||||||
Accrued expenses in cost of revenue for VAT assessments and related penalties and interest | 17,000,000 | |||||||||
Holiday Autos [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain (loss) on sale of businesses | -11,000,000 | |||||||||
Write-off of goodwill | 39,000,000 | |||||||||
Number of earn-out payment | 2 | |||||||||
Annual earn-out payment | 12,000,000 | |||||||||
Earn-out proceeds receivable recognized | 6,000,000 | |||||||||
Other income related to the resolution of a legal contingency | 33,000,000 | |||||||||
Travelocity [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Write-off of goodwill | 9,000,000 | |||||||||
Proceeds from sale of assets | 10,000,000 | |||||||||
Gain on sale of businesses, pre-tax | 1,000,000 | |||||||||
Loss on sale of businesses | 3,000,000 | |||||||||
Travelguru [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain (loss) on sale of businesses | 11,000,000 | |||||||||
Number of subsidiaries sold | 2 | |||||||||
Other income related to the resolution of a legal contingency | 4,000,000 | |||||||||
Zuji [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain (loss) on sale of businesses | -11,000,000 | -14,000,000 | -11,000,000 | |||||||
Income Tax Refunds, Discontinued Operations | 2,000,000 | |||||||||
Sabre Pacific [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Ownership interest sold | 51.00% | |||||||||
Abacus [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Percentage of ownership interest in a joint venture | 49.00% | |||||||||
Sabre Asset Purchase [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain (loss) on sale of businesses | 25,000,000 | |||||||||
Proceeds from sale of assets | 46,000,000 | |||||||||
Sabre Asset Purchase [Member] | Sale of Stock [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from sale of assets | 9,000,000 | |||||||||
Sabre Asset Purchase [Member] | Intercompany Notes [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from sale of assets | 18,000,000 | |||||||||
Sabre Asset Purchase [Member] | Intercompany Receivable [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from sale of assets | 19,000,000 | |||||||||
Tpn [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Number of earn-out payment | 2 | |||||||||
Earn-out proceeds receivable recognized | 3,000,000 | |||||||||
Proceeds from sale of assets | 10,000,000 | |||||||||
Loss on disposition of assets | 3,000,000 | |||||||||
Gain (Loss) recognized on disposition of assets | 0 | |||||||||
Tpn [Member] | Maximum [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Total potential earn-out payments | $10,000,000 |
Discontinued_Operations_and_Di3
Discontinued Operations and Dispositions - Summary of Discontinued Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued Operations and Disposal Groups [Abstract] | |||||||
Revenue | $12,806 | $48,549 | $49,124 | $107,189 | $124,763 | ||
Cost of revenue | 146 | 2,882 | 1,257 | 14,668 | -2,176 | 26,694 | 36,502 |
Selling, general and administrative | 680 | 469 | 3,023 | 31,030 | 23,542 | 107,808 | 101,873 |
Impairment expense | 516 | 11,250 | |||||
Depreciation and amortization | 2,599 | 4,412 | 5,440 | ||||
Operating (loss) income | -826 | 9,455 | -4,280 | 2,851 | 24,643 | -42,975 | -19,052 |
Other income (expense): | |||||||
Interest expense, net | -2,559 | 3,613 | -5,917 | 1,493 | -1,217 | -8,898 | -6,368 |
Loss on sale of businesses, net | -27,708 | -27,709 | -8,266 | ||||
Other, net | -392 | -4,283 | -2,044 | -880 | 1,988 | -2,607 | -2,161 |
Total other expense, net | -2,951 | -670 | -7,961 | -27,095 | -26,938 | -19,771 | -8,529 |
(Loss) income from discontinuing operations before income taxes | -3,777 | 8,785 | -12,241 | -24,244 | -2,295 | -62,746 | -27,581 |
(Benefit) provision for income taxes | -2,041 | 5,770 | -4,224 | -3,349 | 4,881 | -13,799 | -4,120 |
Net (loss) income from discontinued operations | ($1,736) | $3,015 | ($8,017) | ($20,895) | ($7,176) | ($48,947) | ($23,461) |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2014 | |
Segment | Segment | |||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Number of reportable segments | 3 | 6 | ||||||||
Restructuring Charges | $4,735,000 | $15,889,000 | $2,325,000 | $15,889,000 | $36,551,000 | |||||
(Gain) Loss on sale of business assets | -25,850,000 | |||||||||
Severance costs | 1,000,000 | 2,000,000 | ||||||||
Other restructuring costs | 1,000,000 | 2,000,000 | ||||||||
Employee termination benefits | 4,000,000 | |||||||||
Employees reduced by restructuring plan | In the fourth quarter of 2013, we initiated a restructuring plan to simplify our technology organization, better align costs with our current business, reduce our spending on third-party resources, increase focus on product development and reduce our employee base by approximately 350 employees. | In the fourth quarter of 2013, we initiated a restructuring plan to simplify our technology organization, better align costs with our current business, reduce our spend on third-partyresources, and to increase focus on product development. The majority of this plan will be completed in 2014. As a part of this restructuring plan, we will reduce our employee base by approximately 350 employees. | ||||||||
Tpn [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
(Gain) Loss on sale of business assets | 3,000,000 | 3,000,000 | ||||||||
Travelocity [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Number of reportable segments | 1 | 1 | ||||||||
Restructuring Charges | 28,000,000 | |||||||||
Expected future Travelocity restructuring charges | 11,000,000 | 11,000,000 | ||||||||
Incentive to Expedia SMA [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Travelocity restructuring payments | 3,000,000 | 8,000,000 | ||||||||
Incentive to Expedia SMA [Member] | Scenario, Forecast [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Travelocity restructuring payments | 11,000,000 | |||||||||
Employee Termination Benefits [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Restructuring Charges | 2,102,000 | 26,119,000 | 8,000,000 | |||||||
Employee Termination Benefits [Member] | Travelocity [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Restructuring Charges | 2,102,000 | 17,956,000 | ||||||||
Expected future Travelocity restructuring charges | 2,000,000 | 2,000,000 | ||||||||
Contract termination costs [Member] | Travelocity [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Expected future Travelocity restructuring charges | 6,000,000 | 6,000,000 | ||||||||
Contract termination and other related costs [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Expected future Travelocity restructuring charges | 3,000,000 | 3,000,000 | ||||||||
Asset Impairments [Member] | Travelocity [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Restructuring Charges | 4,000,000 | |||||||||
Other related costs [Member] | Travelocity [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Restructuring Charges | 6,000,000 | |||||||||
Expected future Travelocity restructuring charges | $3,000,000 | $3,000,000 |
Restructuring_Charges_Change_i
Restructuring Charges - Change in Restructuring Accruals (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Restructuring Cost And Reserve [Line Items] | ||||||
Charges | $4,735 | $15,889 | $2,325 | $15,889 | $36,551 | |
Travelocity [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Charges | 28,000 | |||||
Employee Termination Benefits [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Beginning balance | 25,894 | |||||
Charges | 2,102 | 26,119 | 8,000 | |||
Adjustments | -4,852 | |||||
Payments | -16,138 | 225 | ||||
Ending balance | 7,006 | 7,006 | 25,894 | 25,894 | ||
Employee Termination Benefits [Member] | Travelocity [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Beginning balance | 17,731 | |||||
Charges | 2,102 | 17,956 | ||||
Adjustments | -3,938 | |||||
Payments | -9,261 | 225 | ||||
Ending balance | 6,634 | 6,634 | 17,731 | 17,731 | ||
Employee Termination Benefits [Member] | Technology Organization [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Beginning balance | 8,163 | |||||
Charges | 8,163 | |||||
Adjustments | -914 | |||||
Payments | -6,877 | |||||
Ending balance | $372 | $372 | $8,163 | $8,163 |
Equity_Method_Investments_Summ
Equity Method Investments - Summary of Abacus' Income Statement Information (Detail) (Abacus [Member], USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Abacus [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Revenue | $87,039 | $83,237 | $263,536 | $248,814 | $335,255 | $320,069 | $261,952 |
Cost of sales | 205,505 | 200,212 | 123,227 | ||||
General and administrative costs | 43,157 | 42,219 | 25,382 | ||||
Other expenses | 37,306 | 32,367 | 19,497 | ||||
Operating income | 12,876 | 15,946 | 42,961 | 41,683 | 49,287 | 45,271 | 93,846 |
Impairment losses, net | -3,057 | ||||||
Gain on disposal of an associate | 5,656 | ||||||
Impairment of goodwill | -100 | -65,809 | |||||
Other non-operating costs | 3,127 | 6,174 | 7,214 | ||||
Income before taxes | 52,314 | -8,708 | 98,003 | ||||
Income tax expense | 9,946 | 11,658 | 18,551 | ||||
Net income (loss) | 42,368 | -20,366 | 79,452 | ||||
Noncontrolling interest | -75 | 130 | 103 | ||||
Net income (loss) attributable to Abacus | $10,793 | $8,887 | $34,863 | $30,575 | $42,443 | ($20,496) | $79,349 |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefit Plans - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | ||||
Apr. 30, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Prior service cost recorded in other comprehensive income | $57,000,000 | |||||||
Company Matching contribution of each pre-tax dollar contributed by the participant on the first 6% of eligible compensation | 100.00% | |||||||
Expenses related to the 401(k) Plan | 21,000,000 | 20,000,000 | 17,000,000 | |||||
Decrease in projected benefit obligation | -34,000,000 | |||||||
Benefit obligation amortization period | 23 years 6 months | |||||||
Defined benefit pension plan estimated prior service credit and actuarial loss to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost | 3,000,000 | |||||||
Legacy Pension Plan (LPP) [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Employer's contribution to pension plan | 4,000,000 | 0 | ||||||
Contribution to pension plan | 3,000,000 | 20,000,000 | 9,000,000 | |||||
Defined benefit plan percentage of funded status | 80.00% | |||||||
Expected contributions to defined benefit pension plans in 2014 | 11,000,000 | |||||||
Fixed Income Securities [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Defined benefit plan target allocations | 43.00% | |||||||
Real Estate [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Defined benefit plan target allocations | 5.00% | |||||||
Cash and Cash Equivalents [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Defined benefit plan target allocations | 2.00% | |||||||
UNITED STATES | Sale of Stock [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Defined benefit plan target allocations | 25.00% | |||||||
Foreign [Member] | Sale of Stock [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Defined benefit plan target allocations | 25.00% | |||||||
lastminute.com [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Contributed percentage of eligible pay on behalf of employees | 5.00% | |||||||
Contribution to pension plan | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Other Benefits [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Amendment description in retiree medical benefits | In February 2009, we amended our retiree medical plan to reduce the subsidies received by participants by 20% per year over the next 5 years, with no further subsidies beginning January 1, 2014. | In February 2009, we amended our retiree medical plan to reduce the subsidies received by participants by 20% per year over five years, with no further subsidies beginning January 1, 2014 | ||||||
Income related to pensions and other postretirement benefit | -16,238,000 | -13,235,000 | -11,965,000 | -97,000 | -10,670,000 | -33,000 | -3,554,000 | |
Pensions and Other Postretirement Benefits [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Income related to pensions and other postretirement benefit | ($16,000,000) | ($15,000,000) | ($15,000,000) |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefit Plans - Summary of Net Period Benefit Costs (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Service cost | $0 | $0 | |||||
Interest cost | 4,886 | 4,483 | 14,686 | 13,448 | 17,930 | 19,744 | 20,447 |
Expected return on plan assets | -5,909 | -5,908 | -17,959 | -17,726 | -23,635 | -24,323 | -23,820 |
Amortization of prior service credit | -358 | -359 | -1,074 | -1,075 | -1,432 | -1,432 | -1,432 |
Amortization of actuarial (gain) loss | 1,290 | 1,846 | 3,690 | 5,537 | 7,383 | 4,269 | 2,195 |
Net periodic (credit) cost | -91 | 62 | -657 | 184 | 246 | -1,742 | -2,610 |
Other Benefits [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Service cost | 0 | 0 | 1 | ||||
Interest cost | 10 | 2 | 30 | 42 | 91 | 176 | |
Amortization of prior service credit | -3,087 | -9,261 | -12,348 | -11,397 | -11,397 | ||
Amortization of actuarial (gain) loss | -33 | -477 | -99 | -1,439 | -3,932 | -1,929 | -745 |
Net periodic (credit) cost | ($33) | ($3,554) | ($97) | ($10,670) | ($16,238) | ($13,235) | ($11,965) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Income Taxes Disclosure [Line Items] | ||||||
Effective income tax rate | 46.00% | 5.00% | ||||
Unrecognized tax benefits | $69,000,000 | $61,241,000 | $54,016,000 | $39,080,000 | $38,072,000 | |
Percentage of future payments to existing share holders, US federal income tax cash savings | 85.00% | |||||
Recognized an initial liability recorded against the Pre-IPO Tax Assets | 321,000,000 | |||||
Valuation allowance | 66,000,000 | |||||
Payments made under tax receivable agreement | 0 | |||||
Domestic pre-tax loss | -185,391,000 | -1,077,917,000 | -42,530,000 | |||
Foreign pre-tax income | 80,907,000 | 261,120,000 | 21,042,000 | |||
Accumulated un-repatriated foreign earnings | 157,000,000 | |||||
Net operating loss carry forwards | 376,427,000 | 714,175,000 | ||||
Deferred valuation allowance | 253,082,000 | 282,091,000 | ||||
Recognized penalties and interest | 1,000,000 | -1,000,000 | ||||
Cumulative accrued interest and penalties | 5,000,000 | 1,000,000 | ||||
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | 58,000,000 | 54,000,000 | 39,000,000 | |||
Reasonably possible amount of unrecognized tax benefits may be resolved in the next twelve month | 9,000,000 | |||||
Tvl Common Inc [Member] | ||||||
Income Taxes Disclosure [Line Items] | ||||||
Deferred valuation allowance | 5,000,000 | |||||
lastminute.com [Member] | ||||||
Income Taxes Disclosure [Line Items] | ||||||
Deferred tax assets | 163,000,000 | 177,000,000 | ||||
Domestic Tax Authority [Member] | ||||||
Income Taxes Disclosure [Line Items] | ||||||
Net operating loss carry forwards | 632,000,000 | |||||
Net operating loss carry forwards, expiry period start | 2021 | |||||
Net operating loss carry forwards, expiry period end | 2032 | |||||
Research tax credit carryforwards | 15,000,000 | |||||
Research tax credit carry forwards, expiry period start | 2019 | |||||
Research tax credit carry forwards, expiry period end | 2032 | |||||
Alternative Minimum Tax ("AMT") credit indefinite carry forward | 20,000,000 | |||||
Deferred valuation allowance | 86,000,000 | |||||
Domestic Tax Authority [Member] | Subject to an annual limitation on their ability to be utilized under Section 382 of the Code [Member] | ||||||
Income Taxes Disclosure [Line Items] | ||||||
Net operating loss carry forwards | 17,000,000 | |||||
Research tax credit carryforwards | 1,000,000 | |||||
Foreign Tax Authority [Member] | ||||||
Income Taxes Disclosure [Line Items] | ||||||
Deferred tax assets for NOL indefinite carry forwards | $167,000,000 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 4 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
31-May-14 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 29, 2007 | 7-May-14 | Sep. 20, 2012 | Apr. 29, 2014 | Apr. 24, 2014 | Apr. 30, 2014 | 9-May-12 | |
Debt And Credit Agreements [Line Items] | |||||||||||||||
Loss on extinguishment of debt | $33,538,000 | $12,181,000 | $12,181,000 | ||||||||||||
Long-term Debt, Gross | 3,088,000,000 | 3,088,000,000 | 3,729,665,000 | 3,444,159,000 | |||||||||||
Net unamortized discount | 15,000,000 | 15,000,000 | 20,000,000 | ||||||||||||
Early redemption option on secured senior notes | 40.00% | 40.00% | 40.00% | ||||||||||||
Contingent call option price, Percentage | 108.50% | ||||||||||||||
Debt Instrument call feature description | Embedded Derivative Related to Senior Secured Notes-The 2019 Notes included a contingent call option to redeem up to 40% of the notes in the event of an equity offering at a rate of 108.50%, until May 15, 2015. | ||||||||||||||
Mortgage loan outstanding | 82,000,000 | 82,000,000 | |||||||||||||
Mortgage loan interest rate | 5.80% | ||||||||||||||
Mortgage loan maturity date | 1-Apr-17 | ||||||||||||||
Proceeds from debt | 148,307,000 | 2,540,063,000 | 2,540,063,000 | 2,225,082,000 | |||||||||||
Unamortized debt issuance costs | 24,000,000 | 24,000,000 | |||||||||||||
Repayments of debt | 797,028,000 | 2,239,538,000 | 2,261,061,000 | 2,924,745,000 | 30,150,000 | ||||||||||
Purchased of buildings, land and furniture and fixtures | 49,802,000 | 57,257,000 | 160,385,000 | 168,744,000 | 226,026,000 | 193,262,000 | 164,638,000 | ||||||||
Building, net book value | 526,722,000 | 526,722,000 | 498,523,000 | 408,396,000 | |||||||||||
Interest rate on notes from joint venture partners | 8.00% | ||||||||||||||
Notes from joint venture partners, balance | 0 | 0 | |||||||||||||
Headquarters Office [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Purchased of buildings, land and furniture and fixtures | 104,000,000 | ||||||||||||||
Buildings [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Building, net book value | 83,000,000 | ||||||||||||||
Senior secured notes due 2019 [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Early repayment of senior debt paid with IPO proceeds | 320,000,000 | ||||||||||||||
Loss on extinguishment of debt | 31,000,000 | ||||||||||||||
Early redemption option on secured senior notes | 40.00% | ||||||||||||||
Contingent call option price, Percentage | 108.50% | ||||||||||||||
Debt Instrument call feature description | The indenture to the 2019 Notes allowed us, at our option, to redeem up to 40% of the principal amount of the notes outstanding in the event of an equity offering, such as an initial public offering, until May 15, 2015. The contingent call option was at a price of 108.50%, plus accrued and unpaid interest, if any, to the date of redemption. In May 2014, we exercised our contingent call option and prepaid $320 million, or 40%, of the outstanding principal on the 2019 Notes at the redemption price of 108.5% of the principal amount. As a result of the prepayment, we recognized a loss on extinguishment of $31 million, which included the $27 million redemption premium. | The indenture to the senior secured notes allows the Company, at its option, to redeem up to 40% of the principal amount of the notes outstanding in the event of an equity offering, such as an initial public offering, until May 15, 2015. The contingent call option is at a price of 108.50%, plus accrued and unpaid interest, if any, to the date of redemption. | |||||||||||||
Face value of debt instruments at the time of issuance | 400,000,000 | ||||||||||||||
Gain on embedded derivative | 2,000,000 | ||||||||||||||
Mortgage Facility [Member] | Headquarters Office [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Purchased of buildings, land and furniture and fixtures | 85,000,000 | ||||||||||||||
Sourced From Cash On Hand [Member] | Headquarters Office [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Purchased of buildings, land and furniture and fixtures | 19,000,000 | ||||||||||||||
8.50% Due 2019 [Member] | Senior secured notes due 2019 [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Long-term Debt, Gross | 480,000,000 | 480,000,000 | 799,823,000 | 801,712,000 | |||||||||||
Face value of debt instruments at the time of issuance | 480,000,000 | 480,000,000 | 800,000,000 | ||||||||||||
Debt instrument interest rate | 8.50% | 8.50% | 8.50% | ||||||||||||
Proceeds from debt | 796,000,000 | ||||||||||||||
Unamortized debt issuance costs | 5,000,000 | ||||||||||||||
Repayments of debt | 679,000,000 | ||||||||||||||
Annual interest expense | 68,000,000 | ||||||||||||||
5.80% Due 2017 [Member] | Mortgage Facility [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Long-term Debt, Gross | 83,541,000 | 84,340,000 | |||||||||||||
5.80% Due 2017 [Member] | Mortgage Facility [Member] | Headquarters Office [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of debt instruments at the time of issuance | 85,000,000 | ||||||||||||||
Debt instrument interest rate | 5.80% | ||||||||||||||
Senior Secured Term Loan C [Member] | Senior secured notes due 2019 [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Early repayment of senior debt paid with IPO proceeds | 90,000,000 | 207,000,000 | 296,000,000 | ||||||||||||
May Two Thousand Twelve [Member] | 8.50% Due 2019 [Member] | Senior secured notes due 2019 [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of debt instruments at the time of issuance | 400,000,000 | ||||||||||||||
September Two Thousand Twelve [Member] | 8.50% Due 2019 [Member] | Senior secured notes due 2019 [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of debt instruments at the time of issuance | 400,000,000 | ||||||||||||||
2019 [Member] | Senior secured notes due 2019 [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Early repayment of senior debt paid with IPO proceeds | 320,000,000 | ||||||||||||||
Redemption amount of principal (debt instrument) | 108.50% | ||||||||||||||
Debt redemption premium paid with IPO proceeds | $27,000,000 |
Debt_Face_Value_of_Outstanding
Debt - Face Value of Outstanding Debt (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Carrying amount of outstanding debt | $3,088,000 | $3,729,665 | $3,444,159 |
Face value of total debt outstanding | 3,102,208 | 3,750,911 | |
Less current portion of debt outstanding | -22,418 | -86,117 | -23,232 |
Face value of outstanding debt | 3,079,790 | 3,664,794 | |
Senior Secured Credit [Member] | Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Rate | L+3.00 % | L+4.00 % | |
Rate | 4.00% | ||
Rate | 5.25% | ||
Debt Instrument, maturity date | 19-Feb-19 | 19-Feb-19 | |
Carrying amount of outstanding debt | 1,747,378 | ||
Face value of outstanding debt | 1,743,938 | 1,757,250 | |
Senior Secured Credit [Member] | Term Loan B [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Rate | 3.00% | 4.00% | |
Senior Secured Credit [Member] | Term Loan B Incremental Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Rate | L+3.00 % | L+3.50 % | |
Rate | 3.50% | ||
Rate | 4.50% | ||
Debt Instrument, maturity date | 19-Feb-19 | 19-Feb-19 | |
Carrying amount of outstanding debt | 349,125 | ||
Face value of outstanding debt | 346,500 | 349,125 | |
Senior Secured Credit [Member] | Term Loan B Incremental Term Loan Facility [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Rate | 3.00% | 3.50% | |
Senior Secured Credit [Member] | Term Loan C [Member] | |||
Debt Instrument [Line Items] | |||
Rate | L+2.50 % | L+3.00 % | |
Rate | 3.00% | ||
Rate | 4.00% | ||
Debt Instrument, maturity date | 31-Dec-17 | 31-Dec-17 | |
Carrying amount of outstanding debt | 360,477 | ||
Face value of outstanding debt | 49,313 | 361,250 | |
Senior Secured Credit [Member] | Term Loan C [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Rate | 2.50% | 3.00% | |
Senior Secured Credit [Member] | Revolver L Plus Two Point Seven Five Percent Two Thousand Nineteen [Member] | |||
Debt Instrument [Line Items] | |||
Rate | L+2.75 % | ||
Debt Instrument, maturity date | 19-Feb-19 | ||
Carrying amount of outstanding debt | 0 | 0 | |
Senior Secured Credit [Member] | Revolver L Plus Two Point Seven Five Percent Two Thousand Nineteen [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Rate | 2.75% | ||
Senior Secured Credit [Member] | Revolver L Plus Three Point Two Five Percent Two Thousand Eighteen [Member] | |||
Debt Instrument [Line Items] | |||
Rate | L+3.25 % | ||
Debt Instrument, maturity date | 19-Feb-18 | ||
Carrying amount of outstanding debt | 0 | 0 | |
Senior Secured Credit [Member] | Revolver L Plus Three Point Two Five Percent Two Thousand Eighteen [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Rate | 3.25% | ||
Senior unsecured notes due 2016 [Member] | 8.35% Due 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Rate | 8.35% | 8.35% | |
Debt Instrument, maturity date | 31-Mar-16 | 15-Mar-16 | |
Carrying amount of outstanding debt | 389,321 | 385,099 | |
Face value of outstanding debt | 400,000 | 400,000 | |
Senior secured notes due 2019 [Member] | 8.50% Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Rate | 8.50% | 8.50% | |
Debt Instrument, maturity date | 15-May-19 | 15-May-19 | |
Carrying amount of outstanding debt | 480,000 | 799,823 | 801,712 |
Mortgage Facility [Member] | 5.80% Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Rate | 5.80% | 5.80% | |
Debt Instrument, maturity date | 31-Mar-17 | 31-Mar-17 | |
Carrying amount of outstanding debt | 83,541 | 84,340 | |
Face value of outstanding debt | $82,457 | $83,286 |
Debt_Face_Value_of_Outstanding1
Debt - Face Value of Outstanding Debt (Parenthetical) (Detail) (Senior Secured Credit [Member], USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Revolver L Plus Two Point Seven Five Percent Two Thousand Nineteen [Member] | |
Debt Instrument [Line Items] | |
Credit facility amount | $370 |
Revolver L Plus Three Point Two Five Percent Two Thousand Eighteen [Member] | |
Debt Instrument [Line Items] | |
Credit facility amount | $35 |
Debt_Senior_Secured_Credit_Fac
Debt (Senior Secured Credit Facilities) - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 7-May-14 | Feb. 19, 2013 | Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 20, 2014 | Sep. 30, 2013 | Apr. 29, 2014 | Apr. 24, 2014 | Apr. 30, 2014 | 9-May-12 | |
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Proceeds from debt | $148,307,000 | $2,540,063,000 | $2,540,063,000 | $2,225,082,000 | |||||||||||||
Debt instrument interest rate terms | Borrowings under the Amended and Restated Credit Agreement bear interest at a rate equal to either, at our option: (i) the Eurocurrency rate plus an applicable margin for Eurocurrency borrowings as set forth below, or (ii) a base rate determined by the highest of (1) the prime rate of Bank of America, (2) the federal funds effective rate plus 1/2% or (3) LIBOR plus 1.00%, plus an applicable margin for base rate borrowings as set forth below. The Eurocurrency rate is based on LIBOR for all U.S. dollar borrowings and has a floor. | Beginning February 19, 2013, borrowings under the term loan agreement bear interest at a rate equal to either, at our option (i) the Eurocurrency rate plus an applicable margin for Eurocurrency borrowings as set forth below, or (ii) a base rate determined by the highest of (1) the prime rate of Bank of America, (2) the federal funds effective rate plus 1/2% or (3) a LIBOR rate plus 1.00%, plus an applicable margin for base rate borrowings as set forth below. The Eurocurrency rate is based on LIBOR for all U.S. dollar borrowings and has a floor. | |||||||||||||||
Debt Instrument collateral terms | Sabre GLBL Inc.bs obligations under the Amended and Restated Credit Agreement are guaranteed by Sabre Holdings and each of Sabre GLBL Inc.bs wholly-owned material domestic subsidiaries, except unrestricted subsidiaries. We refer to these guarantors together with Sabre GLBL Inc., as the Loan Parties. The Amended and Restated Credit Agreement is secured by (i) a first priority security interest on the equity interests in Sabre GLBL Inc. and each other Loan Party that is a direct subsidiary of Sabre GLBL Inc. or another Loan Party, (ii) 65% of the issued and outstanding voting (and 100% of the non-voting) equity interests of each wholly-owned material foreign subsidiary of Sabre GLBL Inc. that is a direct subsidiary of Sabre GLBL Inc. or another Loan Party, and (iii) a blanket lien on substantially all of the tangible and intangible assets of the Loan Parties. | Sabre GLBL Inc.'s obligations under the Amended and Restated Credit Agreement are guaranteed by Sabre Holdings and each of Sabre GLBL Inc.'s wholly-owned material domestic subsidiaries, except unrestricted subsidiaries. We refer to these guarantors together with Sabre GLBL Inc., as the Loan Parties. The Amended and Restated Credit Agreement is secured by (i) a first priority security interest on the equity interests in Sabre GLBL Inc. and each other Loan Party that is a direct subsidiary of Sabre GLBL Inc. or another Loan Party, (ii) 65% of the issued and outstanding voting (and 100% of the non-voting) equity interests of each wholly-owned material foreign subsidiary of Sabre GLBL Inc. that is a direct subsidiary of Sabre GLBL Inc. or another Loan Party, and (iii) a blanket lien on substantially all of the tangible and intangible assets of the Loan Parties. | |||||||||||||||
Percentage of Issued and outstanding voting equity interests, Secured for Debt | 65.00% | 65.00% | |||||||||||||||
Percentage of Issued and outstanding non-voting equity interests, Secured for Debt | 100.00% | 100.00% | |||||||||||||||
Senior Secured Debt (net of cash) to EBITDA, Leverage Ratio | 5.5 | ||||||||||||||||
Debt instrument covenant compliance | Under the Amended and Restated Credit Agreement, the Loan Parties are subject to certain customary non-financial covenants, as well as a maximum Senior Secured Leverage Ratio, which applies if our Revolver utilization exceeds certain thresholds and is calculated as Senior Secured Debt (net of cash) to EBITDA, as defined by the agreement. This ratio was 5.5 to 1.0 for 2013 and is 5.0 to 1.0 for 2014. The definition of EBITDA is based on a trailing twelve months EBITDA adjusted for certain items including non-recurring expenses and the pro forma impact of cost saving initiatives. As of September 30, 2014, we are in compliance with all covenants under the Amended and Restated Credit Agreement. | Under the Amended and Restated Credit Agreement, the loan parties are subject to certain customary non-financial covenants, as well as a maximum Senior Secured Leverage Ratio, which applies if our Revolver utilization exceeds certain thresholds and is calculated as Senior Secured Debt (net of cash) to EBITDA, as defined by the agreement. This ratio was 5.5 to 1.0 for 2013 and is 5.0 to 1.0 for 2014. The definition of EBITDA is based on a trailing twelve months EBITDA adjusted for certain items including non-recurring expenses and the pro forma impact of cost saving initiatives. As of December 31, 2013, we are in compliance with all covenants under the Amended and Restated Agreement. | |||||||||||||||
Outstanding letters of credit | 67,000,000 | 114,000,000 | |||||||||||||||
Outstanding amount of credit resulting in reduction of overall credit | 60,000,000 | ||||||||||||||||
Long-term Debt, Gross | 3,079,790,000 | 3,664,794,000 | |||||||||||||||
Debt Instrument Periodic Payment | 82,000,000 | ||||||||||||||||
Repayments of debt | 797,028,000 | 2,239,538,000 | 2,261,061,000 | 2,924,745,000 | 30,150,000 | ||||||||||||
Long-term Debt , Repayments of Principal in Next Twelve Months | 85,000,000 | ||||||||||||||||
Payment of debt issuance and third-party debt modification costs | 19,116,000 | 43,275,000 | |||||||||||||||
Senior Secured Credit Facilities | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Repayments of debt | 328,000,000 | ||||||||||||||||
Senior secured notes due 2019 [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Face value of debt instruments at the time of issuance | 400,000,000 | ||||||||||||||||
Early repayment of senior debt paid with IPO proceeds | 320,000,000 | ||||||||||||||||
Sourced From Term Loan [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Payment of debt issuance and third-party debt modification costs | 14,000,000 | ||||||||||||||||
Sourced From Cash On Hand [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Payment of debt issuance and third-party debt modification costs | 2,000,000 | ||||||||||||||||
Scenario, Forecast [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Senior Secured Debt (net of cash) to EBITDA, Leverage Ratio | 5 | ||||||||||||||||
Minimum [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Senior Secured Debt (net of cash) to EBITDA, Leverage Ratio | 1 | 1 | |||||||||||||||
Maximum [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Senior Secured Debt (net of cash) to EBITDA, Leverage Ratio | 5 | 5.5 | |||||||||||||||
Term Loan B [Member] | Senior Secured Credit [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt variable rate | 4.00% | ||||||||||||||||
Debt Instrument, maturity date | 19-Feb-19 | 19-Feb-19 | |||||||||||||||
Long-term Debt, Gross | 1,743,938,000 | 1,757,250,000 | |||||||||||||||
Equal quarterly principal installments | 0.25% | ||||||||||||||||
Repricing Premium | 1.00% | ||||||||||||||||
Term Loan C [Member] | Senior Secured Credit [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt variable rate | 3.00% | ||||||||||||||||
Debt Instrument, maturity date | 31-Dec-17 | 31-Dec-17 | |||||||||||||||
Long-term Debt, Gross | 49,313,000 | 361,250,000 | |||||||||||||||
Term Loan C [Member] | Scenario, Forecast [Member] | Senior Secured Credit [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Equal quarterly principal installments | 3.75% | 7.50% | 5.63% | 4.38% | |||||||||||||
Term Loan C [Member] | Eurocurrency Borrowings [Member] | Senior Secured Credit [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt variable rate | 3.00% | 3.00% | |||||||||||||||
Floor rate | 1.00% | 1.00% | |||||||||||||||
Term Loan C [Member] | Base Rate | Senior Secured Credit [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt variable rate | 2.00% | 2.00% | |||||||||||||||
Floor rate | 2.00% | 2.00% | |||||||||||||||
Term Loans [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt instrument covenant compliance | We are also required to pay down the term loans by an amount equal to 50% of excess cash flow, as determined by leverage ratios in our Amended and Restated Credit Agreement, each fiscal year end after our annual consolidated financial statements are delivered. This percentage requirement may decrease or be eliminated if certain leverage ratios are achieved. As a result of the Amended and Restated Credit Agreement, no excess cash flow payment was required in 2013 with respect to our results for the year ended December 31, 2012. Additionally, based on our results for the year ended December 31, 2013, we are not required to make an excess cash flow payment in 2014. In the event of certain asset sales or borrowings, the Amended and Restated Credit Agreement requires that we pay down the term loan with the resulting proceeds. Subject to the Repricing Premium discussed above, we may repay the indebtedness at any time prior to the maturity dates without penalty. | ||||||||||||||||
Excess cash flow payment percentage | 50.00% | ||||||||||||||||
Term Loans [Member] | Senior Secured Credit [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Long-term Debt, Gross | 2,457,000,000 | ||||||||||||||||
February 2019 [Member] | Extended Revolving Credit Facility [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Credit facility amount | 405,000,000 | ||||||||||||||||
Term Loan B Incremental Term Loan Facility [Member] | Senior Secured Credit [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt instrument interest rate terms | Equal to the LIBOR rate, subject to a 1.00% floor, plus 3.50% per annum. | ||||||||||||||||
Debt variable rate | 3.50% | ||||||||||||||||
Debt Instrument, maturity date | 19-Feb-19 | 19-Feb-19 | |||||||||||||||
Long-term Debt, Gross | 346,500,000 | 349,125,000 | |||||||||||||||
Repricing Premium | 1.00% | 1.00% | |||||||||||||||
Term Loan B Incremental Term Loan Facility [Member] | Eurocurrency Borrowings [Member] | Senior Secured Credit [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt variable rate | 3.50% | 3.50% | |||||||||||||||
Floor rate | 1.00% | 1.00% | |||||||||||||||
Term Loan B Incremental Term Loan Facility [Member] | Base Rate | Senior Secured Credit [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt variable rate | 2.50% | 2.50% | |||||||||||||||
Floor rate | 2.00% | 2.00% | |||||||||||||||
Letter of Credit [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Overall credit capacity collateralized with restricted cash | 1,000,000 | 2,000,000 | |||||||||||||||
Description on collateralized letter of credit | $1 million was collateralized with restricted cash. | ||||||||||||||||
Letter of Credit [Member] | Revolving Credit Reduced Value [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Outstanding amount of credit resulting in reduction of overall credit | 66,000,000 | 112,000,000 | |||||||||||||||
Revolver Credit Facility [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Credit facility amount | 352,000,000 | ||||||||||||||||
Debt Instrument, maturity date | 19-Feb-18 | ||||||||||||||||
Incremental revolving commitments | 53,000,000 | ||||||||||||||||
Long-term Debt, Gross | 0 | 0 | |||||||||||||||
Long-term Debt , Repayments of Principal in Next Twelve Months | 22,000,000 | ||||||||||||||||
Revolver Credit Facility [Member] | Eurocurrency Borrowings [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Applicable margin reduction | 2.75% | ||||||||||||||||
Revolver Credit Facility [Member] | Base Rate | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Applicable margin reduction | 1.75% | ||||||||||||||||
Revolver Credit Facility [Member] | Repricing Amendments [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Revolving commitment under agreement revised | 317,000,000 | ||||||||||||||||
Repricing amendments, description | The Repricing Amendments also provided for an incremental revolving commitment due February 19, 2019 of $53 million, increasing the Revolver from $352 million to $405 million. | ||||||||||||||||
Revolver Credit Facility [Member] | February 2019 [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Credit facility amount | 370,000,000 | ||||||||||||||||
Revolving Commitments [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Credit facility amount | 35,000,000 | ||||||||||||||||
Revolving Commitments [Member] | Repricing Amendments [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Repricing amendments, description | The modification also provides for an incremental revolving commitment of $53 million due February 19, 2019 and extends the maturity date of $317 million of the Revolver to the same date with a provision for earlier maturity on November 19, 2018 if certain conditions are met. See Note 22, Subsequent Events. | ||||||||||||||||
Term Loan B [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Credit facility amount | 1,775,000,000 | ||||||||||||||||
Debt Instrument, maturity date | 19-Feb-19 | ||||||||||||||||
Long term debt description | On February 20, 2014, we entered into a series of amendments to our Amended and Restated Credit Agreement (the bRepricing Amendmentsb) the first of which reduced the Term Loan Bbs applicable margin for Eurocurrency and Base rate borrowings to 3.25% and 2.25%, respectively, with a step down to 3.00% and 2.00%, respectively, if the Senior Secured Leverage Ratio (as defined in the Amended and Restated Credit Agreement) is less than or equal to 3.25 to 1.00. It also reduced the Eurocurrency rate floor to 1.00% and the Base rate floor to 2.00%. | ||||||||||||||||
Long-term Debt, Gross | 1,744,000,000 | ||||||||||||||||
Equal quarterly principal installments | 0.25% | ||||||||||||||||
Term Loan B [Member] | Eurocurrency Borrowings [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt variable rate | 3.25% | ||||||||||||||||
Floor rate | 1.00% | ||||||||||||||||
Term Loan B [Member] | Eurocurrency Borrowings [Member] | Senior Secured Leverage Ratio Less Than or Equal To 3.25 to1 [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Applicable margin reduction | 3.00% | ||||||||||||||||
Term Loan B [Member] | Base Rate | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt variable rate | 2.25% | ||||||||||||||||
Floor rate | 2.00% | ||||||||||||||||
Term Loan B [Member] | Base Rate | Senior Secured Leverage Ratio Less Than or Equal To 3.25 to1 [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Applicable margin reduction | 2.00% | ||||||||||||||||
Term Loan B [Member] | February 2019 [Member] | Eurocurrency Borrowings [Member] | Senior Secured Leverage Ratio Less Than or Equal To 3.25 to1 [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Applicable margin reduction | 3.00% | ||||||||||||||||
Term Loan B [Member] | February 2019 [Member] | Base Rate | Senior Secured Leverage Ratio Less Than or Equal To 3.25 to1 [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Applicable margin reduction | 2.00% | ||||||||||||||||
Term Loan C [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Credit facility amount | 425,000,000 | ||||||||||||||||
Long-term Debt, Gross | 49,000,000 | ||||||||||||||||
Excess cash flow payment percentage | 50.00% | ||||||||||||||||
Incremental Term Loan B Facility [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Face value of debt instruments at the time of issuance | 350,000,000 | 350,000,000 | |||||||||||||||
Proceeds from debt | 350,000,000 | ||||||||||||||||
Debt instrument interest rate terms | Equal to the LIBOR rate, subject to a 1.00% floor, plus 3.50% per annum. | ||||||||||||||||
Debt floor interest rate | 1.00% | 1.00% | |||||||||||||||
Debt variable rate | 3.50% | ||||||||||||||||
Provision for increases in interest rates | 0.005 | 0.005 | |||||||||||||||
Debt Instrument, maturity date | 19-Feb-19 | ||||||||||||||||
Senior Secured Term Loan C [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Debt Instrument, maturity date | 31-Dec-17 | ||||||||||||||||
Debt Instrument Periodic Payment | 17,000,000 | ||||||||||||||||
Senior Secured Term Loan C [Member] | Senior secured notes due 2019 [Member] | |||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||
Early repayment of senior debt paid with IPO proceeds | $90,000,000 | $207,000,000 | $296,000,000 |
Debt_Interest_Additional_Infor
Debt (Interest) - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 9-May-12 | Feb. 27, 2012 | Feb. 18, 2013 | Aug. 15, 2012 | Feb. 20, 2014 | Sep. 20, 2012 | Feb. 19, 2013 | |
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt instrument interest rate terms | Borrowings under the Amended and Restated Credit Agreement bear interest at a rate equal to either, at our option: (i) the Eurocurrency rate plus an applicable margin for Eurocurrency borrowings as set forth below, or (ii) a base rate determined by the highest of (1) the prime rate of Bank of America, (2) the federal funds effective rate plus 1/2% or (3) LIBOR plus 1.00%, plus an applicable margin for base rate borrowings as set forth below. The Eurocurrency rate is based on LIBOR for all U.S. dollar borrowings and has a floor. | Beginning February 19, 2013, borrowings under the term loan agreement bear interest at a rate equal to either, at our option (i) the Eurocurrency rate plus an applicable margin for Eurocurrency borrowings as set forth below, or (ii) a base rate determined by the highest of (1) the prime rate of Bank of America, (2) the federal funds effective rate plus 1/2% or (3) a LIBOR rate plus 1.00%, plus an applicable margin for base rate borrowings as set forth below. The Eurocurrency rate is based on LIBOR for all U.S. dollar borrowings and has a floor. | |||||||||||||
Face value of outstanding debt | $3,079,790,000 | $3,079,790,000 | $3,664,794,000 | ||||||||||||
Loss on extinguishment of debt | 33,538,000 | 12,181,000 | 12,181,000 | ||||||||||||
Cost associated with the Amended and Restated Credit Agreement | 19,000,000 | ||||||||||||||
Cost associated with the Amended and Restated Credit Agreement charged to interest expense | 50,153,000 | 63,454,000 | 14,000,000 | 167,332,000 | 209,653,000 | 274,689,000 | 232,450,000 | 174,390,000 | |||||||
Cost associated with the Amended and Restated Credit Agreement charged to capitalized | 3,000,000 | ||||||||||||||
Unamortized debt issuance costs | 24,000,000 | 24,000,000 | |||||||||||||
Book value of outstanding debt | 3,088,000,000 | 3,088,000,000 | 3,729,665,000 | 3,444,159,000 | |||||||||||
Accelerated amortization of debt issuance costs | 4,779,000 | 5,323,000 | 7,104,000 | 23,265,000 | 12,539,000 | ||||||||||
Maximum [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Commitment fee, unused commitments | 0.38% | ||||||||||||||
Other Borrowing [Member] | Maximum [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Other borrowings margin | 50 | ||||||||||||||
2016 Notes [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt instrument interest rate | 8.35% | 8.35% | |||||||||||||
Face value of debt instruments at the time of issuance | 400,000,000 | 400,000,000 | |||||||||||||
Debt Instrument, maturity date | 15-Mar-16 | ||||||||||||||
Senior secured notes due 2019 [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Loss on extinguishment of debt | 31,000,000 | ||||||||||||||
Face value of debt instruments at the time of issuance | 400,000,000 | ||||||||||||||
Initial Term Loan Facility [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of outstanding debt | 2,173,000,000 | ||||||||||||||
Floating interest rate description | One-month LIBOR | ||||||||||||||
Initial Term Loan Facility [Member] | LIBOR [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt variable rate | 5.75% | 2.00% | 5.75% | ||||||||||||
Initial Term Loan Facility [Member] | Remaining Amount [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of outstanding debt | 238,000,000 | ||||||||||||||
Debt variable rate | 2.00% | ||||||||||||||
Initial Term Loan Facility [Member] | Senior Secured Credit [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt Instrument, maturity date | 30-Sep-14 | ||||||||||||||
Floating interest rate description | L+2.00 % | ||||||||||||||
Book value of outstanding debt | 238,335,000 | ||||||||||||||
Initial Term Loan Facility [Member] | Senior Secured Credit [Member] | LIBOR [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt variable rate | 2.00% | ||||||||||||||
Incremental Term Loan [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Credit facility amount | 371,000,000 | ||||||||||||||
Floor rate | 1.25% | ||||||||||||||
Incremental Term Loan [Member] | LIBOR [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt variable rate | 6.00% | ||||||||||||||
Incremental Term Loan [Member] | Senior Secured Credit [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt Instrument, maturity date | 31-Dec-17 | ||||||||||||||
Floating interest rate description | L+6.00 % | ||||||||||||||
Book value of outstanding debt | 370,536,000 | ||||||||||||||
Incremental Term Loan [Member] | Senior Secured Credit [Member] | LIBOR [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt variable rate | 6.00% | ||||||||||||||
Term Loans [Member] | Senior Secured Credit [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of outstanding debt | 2,457,000,000 | ||||||||||||||
Floating interest rate description | Three-month LIBOR | ||||||||||||||
Term Loan B [Member] | Senior Secured Credit [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of outstanding debt | 1,743,938,000 | 1,743,938,000 | 1,757,250,000 | ||||||||||||
Debt Instrument, maturity date | 19-Feb-19 | 19-Feb-19 | |||||||||||||
Debt variable rate | 4.00% | ||||||||||||||
Floating interest rate description | L+3.00 % | L+4.00 % | |||||||||||||
Rate | 5.25% | ||||||||||||||
Book value of outstanding debt | 1,747,378,000 | ||||||||||||||
Term Loan B [Member] | Senior Secured Credit [Member] | LIBOR [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt variable rate | 3.00% | 4.00% | |||||||||||||
Term Loan B Incremental Term Loan Facility [Member] | Senior Secured Credit [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt instrument interest rate terms | Equal to the LIBOR rate, subject to a 1.00% floor, plus 3.50% per annum. | ||||||||||||||
Face value of outstanding debt | 346,500,000 | 346,500,000 | 349,125,000 | ||||||||||||
Debt Instrument, maturity date | 19-Feb-19 | 19-Feb-19 | |||||||||||||
Debt variable rate | 3.50% | ||||||||||||||
Floating interest rate description | L+3.00 % | L+3.50 % | |||||||||||||
Rate | 4.50% | ||||||||||||||
Book value of outstanding debt | 349,125,000 | ||||||||||||||
Term Loan B Incremental Term Loan Facility [Member] | Senior Secured Credit [Member] | LIBOR [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt variable rate | 3.00% | 3.50% | |||||||||||||
Term Loan C [Member] | Senior Secured Credit [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of outstanding debt | 49,313,000 | 49,313,000 | 361,250,000 | ||||||||||||
Debt Instrument, maturity date | 31-Dec-17 | 31-Dec-17 | |||||||||||||
Debt variable rate | 3.00% | ||||||||||||||
Floating interest rate description | L+2.50 % | L+3.00 % | |||||||||||||
Rate | 4.00% | ||||||||||||||
Book value of outstanding debt | 360,477,000 | ||||||||||||||
Term Loan C [Member] | Senior Secured Credit [Member] | LIBOR [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt variable rate | 2.50% | 3.00% | |||||||||||||
8.50% Due 2019 [Member] | Senior secured notes due 2019 [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Debt instrument interest rate | 8.50% | 8.50% | 8.50% | ||||||||||||
Unamortized debt issuance costs | 5,000,000 | ||||||||||||||
Face value of debt instruments at the time of issuance | 480,000,000 | 480,000,000 | 800,000,000 | ||||||||||||
Debt Instrument, maturity date | 15-May-19 | 15-May-19 | |||||||||||||
Rate | 8.50% | 8.50% | |||||||||||||
Book value of outstanding debt | 480,000,000 | 480,000,000 | 799,823,000 | 801,712,000 | |||||||||||
Revolver Credit Facility [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Senior Secured Leverage Ratio | 1 | 3 | |||||||||||||
Other borrowings margin | 50 | ||||||||||||||
Commitment fee, unused commitments | 0.38% | ||||||||||||||
Line of credit facility term debt description | Applicable margins step down by 50 basis points for any quarter if the Senior Secured Leverage Ratio is less than or equal to 3.0 to 1.0. | ||||||||||||||
Commitment fee description | The commitment fee may increase to 0.5% per annum if the Senior Secured Leverage Ratio is greater than 4.0 to 1.0. | The commitment fee may increase to 0.500% per annum if the Senior Secured Leverage Ratio is greater than 4.0 to 1.0. | |||||||||||||
Face value of outstanding debt | 0 | 0 | 0 | ||||||||||||
Cost associated with the Amended and Restated Credit Agreement charged to capitalized | 2,000,000 | ||||||||||||||
Debt Instrument, maturity date | 19-Feb-18 | ||||||||||||||
Credit facility amount | 352,000,000 | ||||||||||||||
Increase in Commitment fee | 0.50% | ||||||||||||||
Incremental revolving commitments | 53,000,000 | ||||||||||||||
Revolver Credit Facility [Member] | Minimum [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Senior Secured Leverage Ratio | 4 | ||||||||||||||
Revolver Credit Facility [Member] | Repricing Amendments [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Revolving commitment under agreement revised | 317,000,000 | ||||||||||||||
Repricing amendments, description | The Repricing Amendments also provided for an incremental revolving commitment due February 19, 2019 of $53 million, increasing the Revolver from $352 million to $405 million. | ||||||||||||||
Amended And Restated Credit Agreement [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Loss on extinguishment of debt | 12,000,000 | ||||||||||||||
Cost associated with the Amended and Restated Credit Agreement | 19,000,000 | ||||||||||||||
Cost associated with the Amended and Restated Credit Agreement charged to interest expense | 14,000,000 | ||||||||||||||
Cost associated with the Amended and Restated Credit Agreement charged to capitalized | 5,000,000 | ||||||||||||||
Unamortized debt issuance costs | 31,000,000 | ||||||||||||||
Previous Credit Agreement [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Cost associated with the Amended and Restated Credit Agreement | 38,000,000 | ||||||||||||||
Cost associated with the Amended and Restated Credit Agreement charged to interest expense | 8,000,000 | ||||||||||||||
Cost associated with the Amended and Restated Credit Agreement charged to capitalized | 30,000,000 | ||||||||||||||
Accelerated amortization of debt issuance costs | 10,000,000 | ||||||||||||||
Revolving Commitments [Member] | Repricing Amendments [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Repricing amendments, description | The modification also provides for an incremental revolving commitment of $53 million due February 19, 2019 and extends the maturity date of $317 million of the Revolver to the same date with a provision for earlier maturity on November 19, 2018 if certain conditions are met. See Note 22, Subsequent Events. | ||||||||||||||
Term Loan B [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Long term debt description | On February 20, 2014, we entered into a series of amendments to our Amended and Restated Credit Agreement (the bRepricing Amendmentsb) the first of which reduced the Term Loan Bbs applicable margin for Eurocurrency and Base rate borrowings to 3.25% and 2.25%, respectively, with a step down to 3.00% and 2.00%, respectively, if the Senior Secured Leverage Ratio (as defined in the Amended and Restated Credit Agreement) is less than or equal to 3.25 to 1.00. It also reduced the Eurocurrency rate floor to 1.00% and the Base rate floor to 2.00%. | ||||||||||||||
Face value of outstanding debt | 1,744,000,000 | 1,744,000,000 | |||||||||||||
Debt instrument interest rate | 4.00% | 4.00% | |||||||||||||
Debt Instrument, maturity date | 19-Feb-19 | ||||||||||||||
Credit facility amount | 1,775,000,000 | ||||||||||||||
Term Loan B [Member] | Maximum [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Other borrowings margin | 25 | ||||||||||||||
Term Loan B [Member] | Extended Revolving Credit Facility [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Senior Secured Leverage Ratio | 1 | ||||||||||||||
Line of credit facility term debt description | Applicable margins for Term Loan B and the Extended Revolver step down 25 basis points for any quarter if the Senior Secured Leverage Ratio is less than or equal to 3.25 to 1.00. | ||||||||||||||
Term Loan B [Member] | Extended Revolving Credit Facility [Member] | Minimum [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Senior Secured Leverage Ratio | 3.25 | ||||||||||||||
Term Loans [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of outstanding debt | 2,140,000,000 | 2,140,000,000 | |||||||||||||
Term Loans [Member] | Unextended Revolver [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Senior Secured Leverage Ratio | 1 | ||||||||||||||
Long term debt description | Applicable margins for all other borrowings under the Amended and Restated Credit Agreement step down by 50 basis points for any quarter if the Senior Secured Leverage Ratio is less than or equal to 3.0 to 1.0. | ||||||||||||||
Term Loans [Member] | Unextended Revolver [Member] | Minimum [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Senior Secured Leverage Ratio | 3 | ||||||||||||||
Incremental Term Loan [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of outstanding debt | 347,000,000 | 347,000,000 | |||||||||||||
Debt instrument interest rate | 4.00% | 4.00% | |||||||||||||
Term Loan C [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Face value of outstanding debt | 49,000,000 | 49,000,000 | |||||||||||||
Debt instrument interest rate | 3.50% | 3.50% | |||||||||||||
Loss on extinguishment of debt | 1,000,000 | ||||||||||||||
Credit facility amount | 425,000,000 | ||||||||||||||
Repricing Amendment [Member] | |||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||
Loss on extinguishment of debt | $3,000,000 |
Debt_Schedule_of_Debt_Interest
Debt - Schedule of Debt Interest Rate (Detail) (Senior Secured Credit [Member]) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Term Loan B [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 4.00% | |
Term Loan B Incremental Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 3.50% | |
Term Loan C [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 3.00% | |
Eurocurrency Borrowings [Member] | Term Loan B [Member] | Prior To Repricing Amendments | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 4.00% | 4.00% |
Floor | 1.25% | 1.25% |
Eurocurrency Borrowings [Member] | Term Loan B [Member] | Subsequent To Repricing Amendments | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 3.25% | |
Floor | 1.00% | |
Eurocurrency Borrowings [Member] | Term Loan B Incremental Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 3.50% | 3.50% |
Floor | 1.00% | 1.00% |
Eurocurrency Borrowings [Member] | Term Loan C [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 3.00% | 3.00% |
Floor | 1.00% | 1.00% |
Eurocurrency Borrowings [Member] | Revolver L+3.75% Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 3.75% | 3.75% |
Eurocurrency Borrowings [Member] | Revolver L Plus Three Percent Two Thousand Nineteen [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 3.00% | |
Base Rate | Term Loan B [Member] | Prior To Repricing Amendments | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 3.00% | 3.00% |
Floor | 2.25% | 2.25% |
Base Rate | Term Loan B [Member] | Subsequent To Repricing Amendments | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 2.25% | |
Floor | 2.00% | |
Base Rate | Term Loan B Incremental Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 2.50% | 2.50% |
Floor | 2.00% | 2.00% |
Base Rate | Term Loan C [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 2.00% | 2.00% |
Floor | 2.00% | 2.00% |
Base Rate | Revolver L+3.75% Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 2.75% | 2.75% |
Base Rate | Revolver L Plus Three Percent Two Thousand Nineteen [Member] | ||
Debt Instrument [Line Items] | ||
Debt variable rate | 2.00% |
Debt_Schedule_of_Debt_Interest1
Debt - Schedule of Debt Interest Rate (Parenthetical) (Detail) (Senior Secured Credit [Member], USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Revolver L Plus Two Point Seven Five Percent Two Thousand Nineteen [Member] | |
Debt Instrument [Line Items] | |
Credit facility amount | $370 |
Revolver L Plus Three Point Two Five Percent Two Thousand Eighteen [Member] | |
Debt Instrument [Line Items] | |
Credit facility amount | $35 |
Debt_Schedule_of_Effective_Int
Debt - Schedule of Effective Interest Rates (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Including Impact of Interest Rate Swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest during period | 5.25% | 6.26% | 5.64% | 7.15% | 6.86% | 6.53% | 4.31% |
Excluding Impact of Interest Rate Swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest during period | 4.50% | 5.51% | 4.94% | 6.43% | 6.21% | 5.65% | 2.72% |
Debt_Aggregate_Maturities_of_L
Debt - Aggregate Maturities of Long-Term Debt (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Three months ending December 31, 2014 | $5,601 | |
2015 | 22,435 | |
2016 | 422,493 | |
2017 | 150,303 | |
2018 | 21,250 | |
Thereafter | 2,480,125 | |
Face value of total debt outstanding | $3,102,208 | $3,750,911 |
Derivatives_Additional_Informa
Derivatives - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
31-May-14 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 7-May-14 | Apr. 30, 2007 | 9-May-12 | |
Swap | |||||||||||
Derivative [Line Items] | |||||||||||
Hedging ineffectiveness recorded in earnings | $0 | $0 | $0 | $0 | |||||||
Estimated gain reclassified from other comprehensive income (loss) to earnings as contracts settle | -1,684,000 | -2,703,000 | -2,747,000 | -6,312,000 | |||||||
Reclassification from OCI to interest expense related to the derivatives net of tax | -11,291,000 | -12,968,000 | -13,457,000 | ||||||||
Early redemption option on secured senior notes | 40.00% | 40.00% | 40.00% | ||||||||
Contingent call option price, Percentage | 108.50% | ||||||||||
Call feature, Description | Embedded Derivative Related to Senior Secured Notes-The 2019 Notes included a contingent call option to redeem up to 40% of the notes in the event of an equity offering at a rate of 108.50%, until May 15, 2015. | ||||||||||
Loss on extinguishment of debt | 33,538,000 | 12,181,000 | 12,181,000 | ||||||||
Number of interest rate swaps entered | 6 | ||||||||||
Senior secured notes due 2019 [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Early redemption option on secured senior notes | 40.00% | ||||||||||
Contingent call option price, Percentage | 108.50% | ||||||||||
Call feature, Description | The indenture to the 2019 Notes allowed us, at our option, to redeem up to 40% of the principal amount of the notes outstanding in the event of an equity offering, such as an initial public offering, until May 15, 2015. The contingent call option was at a price of 108.50%, plus accrued and unpaid interest, if any, to the date of redemption. In May 2014, we exercised our contingent call option and prepaid $320 million, or 40%, of the outstanding principal on the 2019 Notes at the redemption price of 108.5% of the principal amount. As a result of the prepayment, we recognized a loss on extinguishment of $31 million, which included the $27 million redemption premium. | The indenture to the senior secured notes allows the Company, at its option, to redeem up to 40% of the principal amount of the notes outstanding in the event of an equity offering, such as an initial public offering, until May 15, 2015. The contingent call option is at a price of 108.50%, plus accrued and unpaid interest, if any, to the date of redemption. | |||||||||
Early repayment of senior debt paid with IPO proceeds | 320,000,000 | ||||||||||
Loss on extinguishment of debt | 31,000,000 | ||||||||||
Face value of debt instruments at the time of issuance | 400,000,000 | ||||||||||
Gain on embedded derivatives | 2,000,000 | ||||||||||
Senior secured notes due 2019 [Member] | Contingent Call Option [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Loss on extinguishment of debt | 2,000,000 | ||||||||||
Interest rate contracts [Member] | Non designated [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Reclassification from OCI to interest expense related to the derivatives gross | 4,000,000 | 11,000,000 | 15,000,000 | ||||||||
Reclassification from OCI to interest expense related to the derivatives net of tax | 2,000,000 | 7,000,000 | 9,000,000 | ||||||||
Interest rate swap contracts [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Estimated gain reclassified from other comprehensive income (loss) to earnings as contracts settle | -9,453,000 | -15,906,000 | -29,250,000 | ||||||||
Interest rate swap contracts [Member] | Non designated [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate derivative instruments not designated as hedging instruments at fair value, net | 12,000,000 | ||||||||||
Accumulated Unrealized gain (loss) on derivatives | 11,000,000 | ||||||||||
Scenario, Forecast [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Estimated gain reclassified from other comprehensive income (loss) to earnings as contracts settle | $4,000,000 | $5,000,000 |
Derivatives_Schedule_of_Unsett
Derivatives - Schedule of Unsettled Purchased Foreign Currency Forward Contracts (Detail) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Buy Us Dollar Sell Australian Dollar [Member] | Buy Australian Dollar Sell US Dollar [Member] | Buy Australian Dollar Sell US Dollar [Member] | Buy Euro Sell US Dollar [Member] | Buy Euro Sell US Dollar [Member] | Buy British Pound Sterling Sell US Dollar [Member] | Buy British Pound Sterling Sell US Dollar [Member] | Buy Indian Rupee Sell US Dollar [Member] | Buy Indian Rupee Sell US Dollar [Member] | Buy Polish Zloty Sell US Dollar [Member] | Buy Polish Zloty Sell US Dollar [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] |
Foreign Exchange [Member] | Foreign Exchange [Member] | Foreign Exchange [Member] | Foreign Exchange [Member] | Foreign Exchange [Member] | Foreign Exchange [Member] | Foreign Exchange [Member] | Foreign Exchange [Member] | Foreign Exchange [Member] | Foreign Exchange [Member] | Foreign Exchange [Member] | Buy Us Dollar Sell Australian Dollar [Member] | Buy Us Dollar Sell Australian Dollar [Member] | Buy Us Dollar Sell Australian Dollar [Member] | Buy Australian Dollar Sell US Dollar [Member] | Buy Australian Dollar Sell US Dollar [Member] | Buy Euro Sell US Dollar [Member] | Buy Euro Sell US Dollar [Member] | Buy Euro Sell US Dollar [Member] | Buy Euro Sell US Dollar [Member] | Buy British Pound Sterling Sell US Dollar [Member] | Buy British Pound Sterling Sell US Dollar [Member] | Buy British Pound Sterling Sell US Dollar [Member] | Buy British Pound Sterling Sell US Dollar [Member] | Buy Indian Rupee Sell US Dollar [Member] | Buy Indian Rupee Sell US Dollar [Member] | Buy Indian Rupee Sell US Dollar [Member] | Buy Indian Rupee Sell US Dollar [Member] | Buy Polish Zloty Sell US Dollar [Member] | Buy Polish Zloty Sell US Dollar [Member] | Buy Polish Zloty Sell US Dollar [Member] | Buy Polish Zloty Sell US Dollar [Member] | Buy Polish Zloty Sell US Dollar [Member] | Buy Polish Zloty Sell US Dollar [Member] | |
AUD | AUD | AUD | EUR (€) | EUR (€) | GBP (£) | GBP (£) | INR | INR | PLN | PLN | USD ($) | AUD | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | INR | USD ($) | USD ($) | USD ($) | PLN | USD ($) | PLN | USD ($) | PLN | |
Derivative [Line Items] | ||||||||||||||||||||||||||||||||||
Derivative notional amount | 5,625 | 975 | 4,400 | € 12,800 | € 20,005 | £ 18,450 | £ 15,850 | 1,174,000 | 1,236,000 | 170,400 | 158,450 | $6,195 | 6,950 | $5,041 | $996 | $4,433 | $30,323 | € 22,750 | $16,624 | $26,168 | $36,239 | £ 21,950 | $28,908 | $25,418 | $16,680 | 1,074,000 | $18,593 | $21,899 | $61,376 | 193,800 | $52,748 | 170,400 | $48,503 | 158,450 |
Average contract rate | 0.8914 | 0.8914 | 0.8962 | 1.0215 | 1.0074 | 1.3329 | 1.3329 | 1.2988 | 1.3081 | 1.651 | 1.651 | 1.5668 | 1.6036 | 0.0155 | 0.0155 | 0.0158 | 0.0177 | 0.3167 | 0.3167 | 0.3096 | 0.3096 | 0.3061 | 0.3061 |
Derivatives_Schedule_of_Outsta
Derivatives - Schedule of Outstanding and Matured Interest Rate Swaps (Detail) (Interest rate swap contracts [Member], USD $) | 12 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2014 |
Outstanding Interest Rate Swap Agreements [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | $750,000 | |
Outstanding Interest Rate Swap Agreements [Member] | 2.03% [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 400,000 | |
Interest Rate Received | 1 month LIBOR | |
Interest Rate Paid | 2.03% | |
Effective Date | 29-Jul-11 | |
Debt Instrument, maturity date | 30-Sep-14 | |
Outstanding Interest Rate Swap Agreements [Member] | 2.51% [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 350,000 | |
Interest Rate Received | 1 month LIBOR | |
Interest Rate Paid | 2.51% | |
Effective Date | 30-Apr-12 | |
Debt Instrument, maturity date | 30-Sep-14 | |
Interest Rate Swap Matured [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 1,400,000 | 750,000 |
Interest Rate Swap Matured [Member] | 2.03% [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 400,000 | |
Interest Rate Received | 1 month LIBOR | |
Interest Rate Paid | 2.03% | |
Effective Date | 29-Jul-11 | |
Debt Instrument, maturity date | 30-Sep-14 | |
Interest Rate Swap Matured [Member] | 2.51% [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 350,000 | |
Interest Rate Received | 1 month LIBOR | |
Interest Rate Paid | 2.51% | |
Effective Date | 30-Apr-12 | |
Debt Instrument, maturity date | 30-Sep-14 | |
Interest Rate Swap Matured [Member] | 5.04% due April 30, 2012 [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 800,000 | |
Interest Rate Received | 3 month LIBOR | |
Interest Rate Paid | 5.04% | |
Effective Date | 30-Apr-07 | |
Debt Instrument, maturity date | 30-Apr-12 | |
Interest Rate Swap Matured [Member] | 4.99% [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 350,000 | |
Interest Rate Received | 3 month LIBOR | |
Interest Rate Paid | 4.99% | |
Effective Date | 30-Apr-07 | |
Debt Instrument, maturity date | 30-Apr-11 | |
Interest Rate Swap Matured [Member] | 5.04% due April 28, 2011 [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 125,000 | |
Interest Rate Received | 3 month LIBOR | |
Interest Rate Paid | 5.04% | |
Effective Date | 30-Apr-07 | |
Debt Instrument, maturity date | 28-Apr-11 | |
Interest Rate Swap Matured [Member] | 5.03% [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | $125,000 | |
Interest Rate Received | 3 month LIBOR | |
Interest Rate Paid | 5.03% | |
Effective Date | 30-Apr-07 | |
Debt Instrument, maturity date | 28-Apr-11 |
Derivatives_Schedule_of_Estima
Derivatives - Schedule of Estimated Fair Values of Derivatives Designated as Hedging Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |||
Derivative [Line Items] | |||
Total | $5,374 | ($23,004) | |
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Foreign exchange contracts | 5,374 | 2,568 | |
Other accrued liabilities [Member] | |||
Derivative [Line Items] | |||
Foreign exchange contracts | -4,079 | ||
Other accrued liabilities [Member] | Designated as Hedging Instrument [Member] | Interest rate swap contracts [Member] | |||
Derivative [Line Items] | |||
Interest rate swaps | -15,111 | ||
Other noncurrent liabilities [Member] | |||
Derivative [Line Items] | |||
Interest rate swaps | ($10,461) |
Derivatives_Schedule_of_Effect
Derivatives - Schedule of Effects of Derivative Instruments Net of Taxes on Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative [Line Items] | |||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion | ($3,799) | $2,752 | ($3,181) | $564 | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion | 2,999 | 669 | -24,669 | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 915 | -18,796 | -20,742 | ||||
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion | -3,799 | 2,752 | -3,181 | 564 | |||
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||||||
Derivative [Line Items] | |||||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 646 | -370 | 4,242 | 685 | 915 | -2,890 | 8,508 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Other Comprehensive Income (Loss) [Member] | |||||||
Derivative [Line Items] | |||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion | 2,999 | 4,593 | -577 | ||||
Designated as Hedging Instrument [Member] | Interest rate swap contracts [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | |||||||
Derivative [Line Items] | |||||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -15,906 | -29,250 | |||||
Designated as Hedging Instrument [Member] | Interest rate swap contracts [Member] | Cash Flow Hedging [Member] | Other Comprehensive Income (Loss) [Member] | |||||||
Derivative [Line Items] | |||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion | ($3,924) | ($24,092) |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | |
31-May-14 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 01, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | 7-May-14 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Business acquisition contingent consideration discount rate for payments | 4.75% | 4.75% | ||||||
Acquisition of ownership interest in PRISM | 1-Aug-12 | 1-Aug-12 | ||||||
Description of contingent consideration arrangements | contingent consideration, based on management's best estimate of fair value and future performance results on the acquisition date and is to be paid in 24 months following the acquisition date | Contingent Consideration-On August 1, 2012, we acquired all of the outstanding stock and ownership interest of PRISM (see Note 3, Acquisitions). Included in the purchase price is contingent consideration, based on management's best estimate of fair value and future performance results on the acquisition date and is to be paid in 24 months following the acquisition date. | ||||||
Description of sensitivity of fair value | In August 2014, we paid the remaining contingent consideration and contingent employment payments associated with our acquisition of PRISM which totaled $30 million. | A 1% increase or decrease in our discount rate will result in a 1.4% change in fair value. | ||||||
Early redemption option on secured senior notes | 40.00% | 40.00% | 40.00% | |||||
Contingent consideration payment period | 24 months | |||||||
Expense recognized relating to change in fair value of contingent consideration | $1,000,000 | |||||||
Sensitivity change to fair value by percentage | 1.00% | |||||||
Goodwill | 2,152,590,000 | 2,138,175,000 | 2,282,671,000 | |||||
Litigation settlement agreement date | 30-Oct-12 | |||||||
Settled Litigation [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Litigation settlement, liability | 39,000,000 | 118,000,000 | ||||||
Other noncurrent liabilities [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Litigation settlement, liability | 98,000,000 | 127,000,000 | ||||||
Foreign currency forward contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Foreign currency, Liabilities | 4,000,000 | |||||||
Prism [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Acquired assets, Cash consideration | 30,000,000 | 66,000,000 | ||||||
Description of contingent consideration arrangements | Additionally, $6 million is also due in two installments of $3 million each at 12 and 24 months, which is contingent upon employment of key employees and is being expensed over the relevant periods of employment and therefore is not considered a part of the purchase price consideration. We made the first holdback and contingent employment payments totaling $30 million in August 2013. | |||||||
Goodwill | 35,737,000 | |||||||
Travelocity [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Goodwill | 0 | |||||||
Travelocity [Member] | North America [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Goodwill written down value | 96,000,000 | 58,000,000 | 173,000,000 | |||||
Goodwill, implied fair value | 105,000,000 | 163,000,000 | ||||||
Travelocity [Member] | North America [Member] | Long Lived Assets [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Goodwill, implied fair value | 87,000,000 | |||||||
Long-lived assets written down value | 281,000,000 | |||||||
Travelocity [Member] | Europe [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Goodwill written down value | 40,000,000 | 70,000,000 | 12,000,000 | |||||
Goodwill, implied fair value | 76,000,000 | 151,000,000 | ||||||
Travelocity [Member] | Europe [Member] | Computer Software, Intangible Asset [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Impairment of intangible assets, definite lived | 2,000,000 | |||||||
Travelocity [Member] | Europe [Member] | Other intangible assets [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Impairment of intangible assets, definite lived | 1,000,000 | |||||||
Definite lived intangible assets, fair value | 0 | |||||||
Travelocity [Member] | Europe [Member] | Long Lived Assets [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Goodwill, implied fair value | 16,000,000 | |||||||
Long-lived assets written down value | 154,000,000 | |||||||
Senior secured notes due 2019 [Member] | ||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||||
Early redemption option on secured senior notes | 40.00% | |||||||
Early repayment of senior debt paid with IPO proceeds | $320,000,000 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contingent consideration | ($26,303) | ($25,193) |
Derivative Assets (Liabilities) | -4,502 | -23,004 |
Total | -30,805 | -48,197 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative Assets (Liabilities) | -6,159 | -23,004 |
Total | -6,159 | -23,004 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contingent consideration | -26,303 | -25,193 |
Derivative Assets (Liabilities) | 1,657 | |
Total | -24,646 | -25,193 |
Foreign currency forward contracts [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative Assets (Liabilities) | 5,374 | 2,568 |
Foreign currency forward contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative Assets (Liabilities) | 5,374 | 2,568 |
Interest rate swap contracts [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative Assets (Liabilities) | -11,533 | -25,572 |
Interest rate swap contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative Assets (Liabilities) | -11,533 | -25,572 |
Contingent call option, 2019 Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative Assets (Liabilities) | 1,657 | |
Contingent call option, 2019 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative Assets (Liabilities) | $1,657 |
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of Fair Value and Carrying Value of Our 2016 Notes, 2019 Notes and Term Loans (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Senior unsecured notes due 2016 [Member] | Reported Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | $392,767 | $389,321 | $385,000 |
Senior unsecured notes due 2016 [Member] | Portion at Fair Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | 433,000 | 448,320 | 429,000 |
Senior secured notes due 2019 [Member] | Reported Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | 480,779 | 799,823 | 802,000 |
Senior secured notes due 2019 [Member] | Portion at Fair Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | 520,500 | 886,000 | 854,000 |
Term Loan B [Member] | Reported Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | 1,736,119 | 1,747,378 | 1,802,000 |
Term Loan B [Member] | Portion at Fair Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | 1,722,138 | 1,777,107 | 1,812,000 |
Term Loan B Incremental Term Loan Facility [Member] | Reported Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | 346,500 | 349,125 | |
Term Loan B Incremental Term Loan Facility [Member] | Portion at Fair Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | 342,602 | 349,334 | |
Term Loan C [Member] | Reported Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | 49,061 | 360,477 | |
Term Loan C [Member] | Portion at Fair Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | 49,189 | 363,056 | |
$350 million Incremental Term Facility [Member] | Reported Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | 371,000 | ||
$350 million Incremental Term Facility [Member] | Portion at Fair Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial instrument fair value, notes payable | $380,000 |
Comprehensive_Income_Loss_Comp
Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss), Net of Related Deferred Income Taxes (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
In Thousands, unless otherwise specified | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Retirement-related benefit plans | ($62,156) | ($63,762) | ($86,158) | |||
Unrealized loss on foreign currency forward contracts and interest rate swaps | -3,118 | -2,684 | -14,222 | |||
Unrealized foreign currency translation gain | 18,761 | 15,050 | 1,934 | |||
Other | 4,921 | [1] | 1,501 | [1],[2] | 2,916 | [2] |
Total accumulated other comprehensive loss, net of tax | ($41,592) | ($49,895) | ($95,530) | |||
[1] | Primarily relates to our share of Abacus' accumulated other comprehensive income. See Note 5, Equity Method Investments. | |||||
[2] | Primarily relates to our share of Abacus' accumulated other comprehensive income. See Note 6, Equity Method Investments. |
Comprehensive_Income_Loss_Addi
Comprehensive Income (Loss) - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Foreign Currency Translation Net of Tax | ($8,162,000) | ($8,162,000) | [1] | ($888,000) | [1] | |
Change in defined benefit pension and other postretirement benefit plans, deferred tax effects | 12,000,000 | 19,000,000 | 16,000,000 | |||
Change in unrealized gain (loss) on foreign currency forward contracts and interest rate swaps, deferred tax effects | 6,000,000 | 9,000,000 | -1,000,000 | |||
Change in unrealized foreign currency translation gain (loss), deferred tax effects | 3,000,000 | 1,000,000 | 1,000,000 | |||
Discontinued Operations [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Foreign Currency Translation Net of Tax | $8,000,000 | |||||
[1] | Relates to the dispositions of Zuji in 2013 and TravelGuru and Sabre Pacific in 2012. See Note 4, Discontinued Operations and Dispositions. |
Redeemable_Preferred_Stock_Add
Redeemable Preferred Stock - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Apr. 23, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | Sep. 30, 2014 | Dec. 31, 2012 |
Temporary Equity [Line Items] | |||||
Redeemable Preferred Stock, Shares authorized | 225,000,000 | 225,000,000 | 225,000,000 | ||
Redeemable Preferred Stock, Par value | $0.01 | $0.01 | $0.01 | ||
Series A Redeemable Preferred Stock, Shares issued | 87,229,703 | 0 | 87,229,703 | ||
Series A Redeemable Preferred Stock Shares outstanding | 87,184,179 | 0 | 87,184,179 | ||
Series A Preferred Stock [Member] | |||||
Temporary Equity [Line Items] | |||||
Number of shares redeemed in exchange for common stock shares | 40,343,529 | ||||
Redeemable Preferred Stock, Shares authorized | 87,500,000 | ||||
Preferred Stock, stated value | $5.75 | ||||
Series A Redeemable Preferred Stock, Shares issued | 87,229,703 | 87,229,703 | |||
Series A Redeemable Preferred Stock Shares outstanding | 87,184,178 | 87,184,178 | |||
Dividends annual rate | 6.00% | ||||
Dividends payable | $134 | $97 | |||
Dividends declared and paid, in-kind | $90 |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation of Numerators and Denominators Used in Computations of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | |||||||
Income (loss) from continuing operations | $39,019 | $3,071 | $33,008 | ($104,224) | ($90,455) | ($621,726) | ($79,294) |
Net income (loss) attributable to noncontrolling interests | 720 | 714 | 2,168 | 2,135 | 2,863 | -59,317 | -36,681 |
Preferred stock dividends | 9,242 | 11,381 | 27,219 | 36,704 | 34,583 | 32,579 | |
Net income (loss) from continuing operations available to common shareholders, basic and diluted | $38,299 | ($6,885) | $19,459 | ($133,578) | ($130,022) | ($596,992) | ($75,192) |
Denominator: | |||||||
Basic and diluted weighted-average number of shares outstanding | 178,125 | 177,206 | 176,703 | ||||
Basic weighted-average common shares outstanding | 264,768 | 178,140 | 229,405 | 178,051 | |||
Dilutive effect of stock awards | 8,562 | 8,589 | |||||
Diluted weighted-average common shares outstanding | 273,330 | 178,140 | 237,994 | 178,051 | |||
Basic earnings per share | $0.14 | ($0.04) | $0.08 | ($0.75) | |||
Basic and diluted loss per share from continuing operations available to common shareholders | ($0.73) | ($3.37) | ($0.43) | ||||
Diluted earnings per share | $0.14 | ($0.04) | $0.08 | ($0.75) |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | |||||||
Common stock equivalents | 2 | 21 | 1 | 21 | 22 | 20 | 21 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 36 Months Ended | 3 Months Ended | |||||
Dec. 31, 2013 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 01, 2011 | Dec. 31, 2011 | Dec. 21, 2012 | Oct. 31, 2012 | Jun. 18, 2013 | Sep. 30, 2007 | Dec. 31, 2012 | Feb. 28, 2009 | |
Lawsuits | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
VAT receivables | $23,000,000 | $24,000,000 | $23,000,000 | $19,000,000 | $19,000,000 | ||||||||||
Losses related to pending Litigation | 4,000,000 | ||||||||||||||
Charges associated with cases | 19,000,000 | 25,000,000 | |||||||||||||
Reserve reversed | 6,132,000 | -6,117,000 | -8,156,000 | -345,048,000 | |||||||||||
Amounts accrued for loss contingencies | 9,000,000 | 9,000,000 | |||||||||||||
Payments made on cases for loss contingency | 35,000,000 | ||||||||||||||
Interest on insurance claims | 18.00% | ||||||||||||||
Amount of damages claimed | CEATS claimed damages of $0.30 per segment sold on JetBlue's website during the relevant time period which totaled $10 million. | CEATS lawsuit based on the indemnification provision in our agreement with JetBlue, and we agreed to a conditional indemnification. CEATS claimed damages of $0.30 per segment sold on JetBlue's website during the relevant time period which totaled $10 million. | |||||||||||||
Payment received from claims | 12,000,000 | 15,000,000 | 6,000,000 | ||||||||||||
Combined federal and state marginal tax rate | 36.00% | ||||||||||||||
Amount accrued in discontinued operation | 17,000,000 | 17,000,000 | |||||||||||||
CEATS, Inc. [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Amount of damages claimed value | 10,000,000 | 10,000,000 | |||||||||||||
Amount of damages claimed per segment | 0.3 | 0.3 | |||||||||||||
General Excise Tax Litigation [Member] | HAWAII | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Amounts accrued for loss contingencies | 2,000,000 | 9,000,000 | 2,000,000 | ||||||||||||
Calculated value of tax | 10,000,000 | ||||||||||||||
General Excise Tax Litigation [Member] | HAWAII | Cost of revenue [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Charges associated with cases | 1,000,000 | 17,000,000 | |||||||||||||
Hotel Occupancy Tax Litigation [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Number of lawsuits filed | 70 | ||||||||||||||
Number of lawsuits dismissed | 30 | ||||||||||||||
Period for which suits filed by government | 10 years | ||||||||||||||
Payments made on cases for loss contingency | 4,000,000 | ||||||||||||||
Hotel Occupancy Tax Litigation [Member] | HAWAII | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Calculated value of tax | 10,000,000 | 10,000,000 | |||||||||||||
Hotel Occupancy Tax Litigation [Member] | Washington D.C. and Wyoming [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Amounts accrued for loss contingencies | 6,000,000 | ||||||||||||||
Hotel Occupancy General Excise Tax Litigation [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Amounts accrued for loss contingencies | 18,000,000 | 20,000,000 | 18,000,000 | ||||||||||||
Hotel Occupancy General Excise Tax Litigation [Member] | HAWAII | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Charges associated with cases | 27,000,000 | 25,000,000 | 2,000,000 | ||||||||||||
Amounts accrued for loss contingencies | 9,000,000 | 11,000,000 | 9,000,000 | 28,000,000 | 28,000,000 | ||||||||||
American Airlines [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Charges associated with cases | 60,000,000 | 64,000,000 | 222,000,000 | ||||||||||||
Payments made on cases for loss contingency | 100,000,000 | 100,000,000 | |||||||||||||
Number of lawsuits settled | 2 | ||||||||||||||
Minimum actual damages claimed by lawsuit | 1,000,000,000 | ||||||||||||||
Discount rate used to estimate fair value of settlement liability, minimum | 6.00% | 6.00% | |||||||||||||
Discount rate used to estimate fair value of settlement liability, maximum | 11.50% | 11.50% | |||||||||||||
Hotel Related Antitrust Litigation [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Representatives filed suits against company | 2 | ||||||||||||||
Insurance Carriers [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Interest on insurance claims | 18.00% | ||||||||||||||
Number of disputes against insurance carriers | 2 | ||||||||||||||
Ministry of the Economy, Finance and Industry, France [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Losses related to pending Litigation | 4,000,000 | ||||||||||||||
Discontinued Operations [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Allowance for losses relating to such events in assets of discontinued operations | 4,000,000 | 4,000,000 | 4,000,000 | 37,000,000 | 37,000,000 | ||||||||||
Secret Hotels2 Limited [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Tax payable amount | 11,000,000 | ||||||||||||||
Holiday Autos [Member] | Discontinued Operations [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
VAT receivables | 6,000,000 | 5,000,000 | 6,000,000 | ||||||||||||
Foreign Tax Authority [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Reserve reversed | 17,000,000 | ||||||||||||||
Foreign Tax Authority [Member] | INDIA | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Interest and penalties related to income taxes | 26,000,000 | 25,000,000 | |||||||||||||
Foreign Tax Authority [Member] | Secret Hotels2 Limited [Member] | VAT Litigation [Member] | United Kingdom [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Amount of damages claimed value | 11,000,000 | ||||||||||||||
Foreign Tax Authority [Member] | Secret Hotels2 Limited [Member] | Discontinued Operations [Member] | United Kingdom [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Charges associated with cases | 17,000,000 | ||||||||||||||
Minimum [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Amount of damages claimed value | 317,000,000 | ||||||||||||||
Expected tax benefit realization period | 1 year | ||||||||||||||
Minimum [Member] | US Airways Inc [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Amount of damages claimed value | 281,000,000 | ||||||||||||||
Maximum [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Amount of damages claimed value | 482,000,000 | ||||||||||||||
Expected tax benefit realization period | 4 years | ||||||||||||||
Maximum [Member] | US Airways Inc [Member] | |||||||||||||||
Other Commitments [Line Items] | |||||||||||||||
Amount of damages claimed value | $425,000,000 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment | Segment | ||||
Country | Country | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Number of reportable segments | 3 | 6 | |||
Payments made by Travelocity for not meeting minimum booking level requirement | $7 | ||||
Number of reportable segments | 3 | 3 | |||
Countries of operations with foreign revenue and long-lived assets | 128 | ||||
Travel Network [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Transaction-based revenue percentage | 89.00% | 90.00% | 93.00% | ||
Airline And Hospitality Solutions [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Transaction-based revenue percentage | 70.00% | 67.00% | 66.00% | ||
Travelocity [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Transaction-based revenue percentage | 87.00% | 88.00% | 87.00% |
Segment_Information_Summary_of
Segment Information - Summary of Segment Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | |||||||
Adjusted Revenue | $759,178 | $775,823 | $2,236,911 | $2,303,399 | |||
Amortization of Expedia SMA incentive payments | -2,875 | -7,625 | |||||
Revenue | 756,303 | 775,823 | 2,229,286 | 2,303,399 | 3,049,525 | 2,974,364 | 2,855,961 |
Adjusted Gross Margin | 358,354 | 369,054 | 1,044,076 | 1,084,535 | 1,419,047 | 1,418,289 | 1,333,754 |
Adjusted EBITDA | 229,926 | 201,349 | 617,350 | 583,963 | 791,323 | 786,629 | 720,163 |
Depreciation and amortization | 71,712 | 76,366 | 230,461 | 230,277 | 307,595 | 315,733 | 293,117 |
Adjusted capital expenditures | 59,807 | 67,280 | 187,987 | 217,430 | 284,840 | 271,805 | 223,747 |
Incentive to Expedia SMA [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Amortization of Expedia SMA incentive payments | -2,875 | -7,625 | |||||
Operating Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 3,119,232 | 3,052,248 | 2,962,303 | ||||
Adjusted EBITDA | 291,448 | 248,071 | 786,207 | 735,281 | 1,008,135 | 995,853 | 904,224 |
Depreciation and amortization | 41,941 | 34,315 | 129,911 | 103,861 | 138,539 | 128,561 | 109,133 |
Adjusted capital expenditures | 55,917 | 62,106 | 168,452 | 198,523 | 257,078 | 235,101 | 195,228 |
Operating Segments [Member] | Travel Network [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Revenue | 466,278 | 449,562 | 1,420,341 | 1,381,105 | |||
Revenue | 1,821,498 | 1,795,127 | 1,740,007 | ||||
Adjusted Gross Margin | 216,214 | 207,506 | 670,023 | 652,568 | 860,793 | 843,863 | 772,753 |
Adjusted EBITDA | 193,823 | 183,728 | 606,637 | 582,268 | 772,208 | 768,452 | 692,571 |
Depreciation and amortization | 14,788 | 13,225 | 46,597 | 37,810 | 52,507 | 36,659 | 33,705 |
Adjusted capital expenditures | 13,238 | 19,542 | 43,858 | 51,593 | 69,357 | 45,262 | 54,451 |
Operating Segments [Member] | Airline And Hospitality Solutions [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Revenue | 208,685 | 182,505 | 571,975 | 522,794 | |||
Revenue | 711,745 | 597,649 | 522,692 | ||||
Adjusted Gross Margin | 94,747 | 64,539 | 235,546 | 183,237 | 262,386 | 218,421 | 185,147 |
Adjusted EBITDA | 81,671 | 56,940 | 197,686 | 145,485 | 213,075 | 166,282 | 135,184 |
Depreciation and amortization | 26,031 | 19,853 | 79,729 | 57,225 | 77,320 | 52,010 | 31,930 |
Adjusted capital expenditures | 39,994 | 38,993 | 117,784 | 132,563 | 170,860 | 163,754 | 96,751 |
Operating Segments [Member] | Travelocity [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Revenue | 88,853 | 160,811 | 268,848 | 457,518 | |||
Revenue | 585,989 | 659,472 | 699,604 | ||||
Adjusted Gross Margin | 66,013 | 102,710 | 184,124 | 277,895 | 353,489 | 413,802 | 447,790 |
Adjusted EBITDA | 15,954 | 7,403 | -18,116 | 7,528 | 22,852 | 61,119 | 76,469 |
Depreciation and amortization | 1,122 | 1,237 | 3,585 | 8,826 | 8,712 | 39,892 | 43,498 |
Adjusted capital expenditures | 2,685 | 3,571 | 6,810 | 14,367 | 16,861 | 26,085 | 44,026 |
Intersegment Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Revenue | -4,638 | -17,055 | -24,253 | -58,018 | |||
Revenue | -69,707 | -77,884 | -106,342 | ||||
Adjusted Gross Margin | -41 | -123 | -7,498 | -514 | -717 | -1,010 | -1,083 |
Corporate, Non-Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | -18,579 | -5,578 | -38,119 | -28,651 | -56,904 | -56,787 | -70,853 |
Adjusted EBITDA | -61,522 | -46,722 | -168,857 | -151,318 | -216,812 | -209,224 | -184,061 |
Depreciation and amortization | 29,771 | 42,051 | 100,550 | 126,416 | 169,056 | 187,172 | 183,984 |
Adjusted capital expenditures | $3,890 | $5,174 | $19,535 | $18,907 | $27,762 | $36,704 | $28,519 |
Segment_Information_Reconcilia
Segment Information - Reconciliation of Adjusted Gross Margin to Operating Income (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Segment Reporting [Abstract] | ||||||||||||
Adjusted Gross Margin | $358,354 | $369,054 | $1,044,076 | $1,084,535 | $1,419,047 | $1,418,289 | $1,333,754 | |||||
Less adjustments: | ||||||||||||
Selling, general and administrative | 169,183 | [1] | 208,033 | [1] | 575,413 | [1] | 620,226 | [1] | 792,929 | 1,188,248 | 806,435 | |
Impairment | 2,837 | 138,435 | 138,435 | 573,180 | 185,240 | |||||||
Restructuring Charges | 4,735 | 15,889 | 2,325 | 15,889 | 36,551 | |||||||
Depreciation and amortization | 47,252 | 49,421 | 157,146 | 150,441 | 202,485 | 198,206 | 172,846 | |||||
Amortization of upfront incentive consideration | 10,388 | 9,385 | 33,177 | 28,736 | 36,649 | 36,527 | 37,748 | |||||
Restructuring and other costs | 4,865 | 2,582 | 10,016 | 4,521 | 12,615 | 4,525 | 1,786 | |||||
Litigation and taxes, including penalties | 188 | 5,389 | 1,127 | 19,864 | 20,921 | 22,187 | ||||||
Stock-based compensation | 7,000 | 2,172 | 544 | 5,618 | 816 | 1,702 | 1,715 | 1,454 | ||||
Amortization of Expedia SMA incentive payments | 2,875 | 7,625 | ||||||||||
Operating income (loss) | $116,696 | $74,974 | $251,629 | $105,607 | $176,760 | ($606,299) | $128,245 | |||||
[1] | Includes stock-based compensation as follows: Cost of revenue $ 1,702 $ 1,715 $ 1,454 Selling, general and administrative 7,384 8,119 5,880 |
Segment_Information_Reconcilia1
Segment Information - Reconciliation of Adjusted EBITDA to Loss from Continuing Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Adjusted EBITDA | $229,926 | $201,349 | $617,350 | $583,963 | $791,323 | $786,629 | $720,163 | |||||
Less adjustments: | ||||||||||||
Impairment | 2,837 | 138,435 | 138,435 | 573,180 | 185,240 | |||||||
Amortization of upfront incentive consideration | 10,388 | 9,385 | 33,177 | 28,736 | 36,649 | 36,527 | 37,748 | |||||
Interest expense, net | 50,153 | 63,454 | 14,000 | 167,332 | 209,653 | 274,689 | 232,450 | 174,390 | ||||
Loss on extinguishment of debt | 33,538 | 12,181 | 12,181 | |||||||||
Other, net | -565 | 2,429 | -760 | 1,099 | 6,724 | 1,385 | -1,156 | |||||
Restructuring and other costs | 4,865 | 2,582 | 10,016 | 4,521 | 12,615 | 4,525 | 1,786 | |||||
Litigation and taxes, including penalties | 188 | 5,389 | 1,127 | 19,864 | 20,921 | 22,187 | ||||||
Stock-based compensation | 22,434 | 5,446 | 9,086 | 9,834 | 7,334 | |||||||
Amortization of Expedia SMA incentive payments | 2,875 | 7,625 | ||||||||||
(Benefit) provision for income taxes | 30,956 | 7,861 | 27,878 | -5,229 | -14,029 | -195,071 | 57,806 | |||||
Gain on sale of business and assets | -25,850 | |||||||||||
Income (loss) from continuing operations | 39,019 | 3,071 | 33,008 | -104,224 | -90,455 | -621,726 | -79,294 | |||||
EBITDA [Member] | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Adjusted EBITDA | 229,926 | 201,349 | 617,350 | 583,963 | 791,323 | 786,629 | 720,163 | |||||
Less adjustments: | ||||||||||||
Impairment | 2,837 | 138,435 | 138,435 | 596,980 | 185,240 | |||||||
Depreciation and amortization of property and equipment | 39,524 | [1] | 32,936 | [1] | 122,409 | [1] | 97,687 | [1] | 131,483 | 135,561 | 122,640 | |
Amortization of capitalized implementation costs | 9,084 | [2] | 8,437 | [2] | 27,111 | [2] | 27,038 | [2] | 35,551 | 20,855 | 11,365 | |
Acquisition related amortization | 23,905 | [3] | 35,794 | [3] | 83,344 | [3] | 107,955 | [3] | 143,765 | 162,517 | 162,312 | |
Amortization of upfront incentive consideration | 10,388 | [4] | 9,385 | [4] | 33,177 | [4] | 28,736 | [4] | 36,649 | 36,527 | 37,748 | |
Interest expense, net | 50,153 | 63,454 | 167,332 | 209,653 | 274,689 | 232,450 | 174,390 | |||||
Loss on extinguishment of debt | 33,538 | 12,181 | 12,181 | |||||||||
Other, net | -565 | [5] | 2,429 | [5] | -760 | [5] | 1,099 | [5] | 6,724 | 1,385 | -1,156 | |
Restructuring and other costs | 14,482 | [6] | 21,754 | [6] | 24,056 | [6] | 26,296 | [6] | 59,052 | 6,776 | 12,986 | |
Litigation and taxes, including penalties | 4,440 | [7] | 8,579 | [7] | 12,497 | [7] | 31,543 | [7] | 39,431 | 418,622 | 21,601 | |
Stock-based compensation | 5,472 | 2,686 | 22,434 | 5,446 | 9,086 | 9,834 | 7,334 | |||||
Management fees | 193 | [8] | 2,126 | [8] | 23,701 | [8] | 7,347 | [8] | 8,761 | 7,769 | 7,191 | |
Amortization of Expedia SMA incentive payments | 2,875 | 7,625 | ||||||||||
(Benefit) provision for income taxes | 30,956 | 7,861 | 27,878 | -5,229 | -14,029 | -195,071 | 57,806 | |||||
Gain on sale of business and assets | -25,850 | |||||||||||
Income (loss) from continuing operations | $39,019 | $3,071 | $33,008 | ($104,224) | ($90,455) | ($621,726) | ($79,294) | |||||
[1] | Depreciation and amortization of property and equipment includes software developed for internal use. | |||||||||||
[2] | Amortization of capitalized implementation costs represents amortization of upfront costs to implement new customer contracts under our SaaS and hosted revenue model. | |||||||||||
[3] | Acquisition related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date and amortization of the excess basis in our underlying equity in joint ventures. | |||||||||||
[4] | Our Travel Network business at times makes upfront cash payments or other consideration to travel agency subscribers at the inception or modification of a service contract, which are capitalized and amortized over an average expected life of the service contract, generally over three to five years. Such consideration is made with the objective of increasing the number of clients or to ensure or improve customer loyalty. Such service contract terms are established such that the supplier and other fees generated over the life of the contract will exceed the cost of the incentive consideration provided up front. Such service contracts with travel agency subscribers require that the customer commit to achieving certain economic objectives and generally have terms requiring repayment of the upfront incentive consideration if those objectives are not met. | |||||||||||
[5] | Other, net primarily represents foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency. | |||||||||||
[6] | Restructuring and other costs represents charges associated with business restructuring and associated changes implemented which resulted in severance benefits related to employee terminations, integration and facility opening or closing costs and other business reorganization costs. | |||||||||||
[7] | Litigation and taxes, including penalties represents charges or settlements associated with airline antitrust litigation as well as payments or reserves taken in relation to certain retroactive hotel occupancy and excise tax disputes (see Note 14, Contingencies). | |||||||||||
[8] | We paid an annual management fee to TPG and Silver Lake in an amount between (i) $5 million and (ii) $7 million, the actual amount of which is calculated based upon 1% of Adjusted EBITDA, earned by the company in such fiscal year up to a maximum of $7 million. In addition, the MSA provided for reimbursement of certain costs incurred by TPG and Silver Lake, which are included in this line item. The MSA was terminated in connection with our initial public offering. |
Segment_Information_Reconcilia2
Segment Information - Reconciliation of Adjusted EBITDA to Loss from Continuing Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Maximum percentage of management fee payable from adjusted EBITDA | 1.00% | 1.00% | ||||
Condition of management fees | Annual management fee to TPG and Silver Lake in an amount between (i) $5 million and (ii) $7 million, the actual amount of which is calculated based upon 1% of Adjusted EBITDA, earned by the company in such fiscal year up to a maximum of $7 million. | Annual management fee to TPG and Silver Lake in an amount equal to the lesser of (i) 1% of our Adjusted EBITDA and (ii) $7 million. | ||||
Impairment charges | $2,837,000 | $138,435,000 | $138,435,000 | $573,180,000 | $185,240,000 | |
Maximum annual management fee payable | 7,000,000 | |||||
Abacus [Member] | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Impairment charges | 24,000,000 | |||||
Minimum [Member] | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Average expected life of the service contract to cost of revenue | 3 years | 3 years | ||||
Management fee paid with IPO proceeds | 5,000,000 | 5,000,000 | ||||
Maximum [Member] | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Average expected life of the service contract to cost of revenue | 5 years | 5 years | ||||
Management fee paid with IPO proceeds | 7,000,000 | $7,000,000 |
Segment_Information_Components
Segment Information - Components of Adjusted Capital Expenditures (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting [Abstract] | |||||||
Additions to property and equipment | $49,802 | $57,257 | $160,385 | $168,744 | $226,026 | $193,262 | $164,638 |
Capitalized implementation costs | 10,005 | 10,023 | 27,602 | 48,686 | 58,814 | 78,543 | 59,109 |
Adjusted capital expenditures | $59,807 | $67,280 | $187,987 | $217,430 | $284,840 | $271,805 | $223,747 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2009 | |
Segment | Segment | |||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Allowance for doubtful accounts receivable | $22,000,000 | $28,000,000 | ||||||
Advertising expense | 153,000,000 | 163,000,000 | 191,000,000 | |||||
Advertising barter transactions, revenue | 2,000,000 | 9,000,000 | 16,000,000 | |||||
Advertising barter transactions, expense | 2,000,000 | 9,000,000 | 16,000,000 | |||||
Research and development expense | 6,000,000 | 4,000,000 | 3,000,000 | |||||
Depreciation and amortization | 131,000,000 | 136,000,000 | 123,000,000 | |||||
Number of reportable segments | 3 | 6 | ||||||
Stock-based compensation expense | 22,434,000 | 5,446,000 | 9,086,000 | 9,834,000 | 7,334,000 | |||
Minimum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Contract terms for software usage by customers | 3 years | |||||||
Capitalized computer software amortization period | 4 years | |||||||
Expected life of service contracts with significant travel agency customers | 3 years | |||||||
Maximum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Contract terms for software usage by customers | 10 years | |||||||
Capitalized computer software amortization period | 30 years | |||||||
Expected life of service contracts with significant travel agency customers | 5 years | |||||||
Transaction Revenue Model [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Transaction fee cancellation reserve | 8,000,000 | 8,000,000 | ||||||
Agency Revenue Model [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Allowance for doubtful accounts receivable | 2,000,000 | 3,000,000 | ||||||
Cost of Sales [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Reclassification adjustments | 198,000,000 | 173,000,000 | ||||||
Selling, general and administrative [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Reclassification adjustments | 118,000,000 | 120,000,000 | ||||||
Stock-based compensation expense | 16,816,000 | 4,630,000 | 7,384,000 | 8,119,000 | 5,880,000 | 3,300,000 | 2,142,000 | |
Depreciation And Amortization Expenses [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Reclassification adjustments | 2,000,000 | 2,000,000 | ||||||
Computer Software, Intangible Asset [Member] | Minimum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Capitalized computer software amortization period | 3 years | |||||||
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Capitalized computer software amortization period | 10 years | |||||||
Joint Venture [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Investments in joint ventures in excess of equity in joint ventures | 93,000,000 | 97,000,000 | ||||||
Common Units [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Percentage of ownership interest of noncontrolling interest | 5.00% | |||||||
Preferred Units [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Percentage of ownership interest of parent company | 100.00% | |||||||
Commercial Air Travel [Member] | Accounts Receivable [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Accounts receivable, net | 178,000,000 | 189,000,000 | ||||||
Concentration risk percentage | 58.00% | 58.00% | ||||||
Commercial Air Travel [Member] | Payment [Member] | Airline Clearing House [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration risk percentage | 57.00% | |||||||
Commercial Air Travel [Member] | Sales Revenue, Net [Member] | Airline Clearing House [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration risk percentage | 94.00% | |||||||
Abacus [Member] | Sabre Pacific [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Impairment of goodwill | $24,000,000 | |||||||
Tvl Common Inc [Member] | Common Units [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Percentage of ownership interest of parent company | 95.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Voting Interest on Stock Held in Investee (Detail) | Dec. 31, 2013 |
ESS Elektroniczne Systemy Spzedazy Sp. zo.o [Member] | |
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |
Joint Venture, voting interest | 40.00% |
Abacus [Member] | |
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |
Joint Venture, voting interest | 35.00% |
SOUTH AFRICA | Auto Holidays Pty Limited [Member] | |
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |
Joint Venture, voting interest | 50.00% |
BULGARIA | Sabre [Member] | |
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |
Joint Venture, voting interest | 20.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Depreciation and Amortization Policies for Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | Lesser of lease term or 35 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | Lesser of lease term or useful life |
Maximum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 35 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 15 years |
Maximum [Member] | Equipment, general office and computer [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Maximum [Member] | Software developed for internal use [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Minimum [Member] | Equipment, general office and computer [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Minimum [Member] | Software developed for internal use [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Summary_of_Purchase_Price_and_
Summary of Purchase Price and Goodwill Allocation Amounts (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2012 |
In Thousands, unless otherwise specified | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Goodwill | $2,152,590 | $2,138,175 | $2,282,671 | |
Prism [Member] | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Goodwill | 35,737 | |||
Accounts receivable, net | 8,059 | |||
Other net assets acquired | 1,458 | |||
Total purchase price | 116,154 | |||
Patents [Member] | Prism [Member] | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Finite lived intangible assets | 59,400 | |||
Acquired customer relationships [Member] | Prism [Member] | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Finite lived intangible assets | 10,700 | |||
Trademarks [Member] | Prism [Member] | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Finite lived intangible assets | $800 |
Summary_of_Purchase_Price_and_1
Summary of Purchase Price and Goodwill Allocation Amounts (Parenthetical) (Detail) (Prism [Member]) | 0 Months Ended |
Aug. 01, 2012 | |
Patents [Member] | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Finite lived intangible assets, useful life | 10 years |
Acquired customer relationships [Member] | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Finite lived intangible assets, useful life | 10 years |
Trademarks [Member] | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Finite lived intangible assets, useful life | 5 years |
Equity_Method_Investments_Addi
Equity Method Investments - Additional Information (Detail) (Abacus [Member], Sabre Pacific [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Abacus [Member] | Sabre Pacific [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Impairment of goodwill | $24,000 |
Equity_Method_Investments_Summ1
Equity Method Investments - Summary of Abacus' Condensed Consolidated Statements of Comprehensive Income (Detail) (Abacus [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Abacus [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net income (loss) | $42,368 | ($20,366) | $79,452 |
Other comprehensive loss | -4,043 | -9,379 | -3,588 |
Comprehensive loss | 38,325 | -29,745 | 75,864 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 88 | -76 | -81 |
Comprehensive loss attributable to Abacus | $38,413 | ($29,821) | $75,783 |
Equity_Method_Investments_Summ2
Equity Method Investments - Summary of Abacus' Condensed Consolidated Balance Sheets (Detail) (Abacus [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Abacus [Member] | ||||
Assets | ||||
Cash and cash equivalents | $107,729 | $96,194 | $176,805 | $171,641 |
Accounts receivable, net | 43,679 | 51,746 | ||
Other receivables, net | 61,481 | 53,219 | ||
Total current assets | 212,889 | 201,159 | ||
Property and equipment, net | 32,167 | 28,130 | ||
Goodwill and intangible assets, net | 2,505 | 2,505 | ||
Other assets, net | 41,647 | 46,788 | ||
Total assets | 289,208 | 278,582 | ||
Liabilities and stockholders' equity | ||||
Accounts payable | 19,820 | 30,463 | ||
Other accrued liabilities | 103,887 | 91,270 | ||
Provision for taxation | 47,073 | 48,277 | ||
Total current liabilities | 170,780 | 170,010 | ||
Deferred income taxes | 7,474 | 5,733 | ||
Stockholders' equity | ||||
Share capital | 56,580 | 56,580 | ||
Retained earnings | 54,159 | 45,746 | ||
Noncontrolling interest | 215 | 513 | ||
Total stockholders' equity | 110,954 | 102,839 | ||
Total liabilities and stockholders' equity | $289,208 | $278,582 |
Equity_Method_Investments_Summ3
Equity Method Investments - Summary of Abacus' Condensed Consolidated Statements of Cash Flows (Detail) (Abacus [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Abacus [Member] | |||
Operating Activities | |||
Cash provided by operating activities | $57,899 | $9,214 | $48,833 |
Investing Activities | |||
Cash used in investing activities | -16,154 | -29,183 | -8,560 |
Financing Activities | |||
Dividends paid | -30,000 | -60,486 | -35,000 |
Other financing activities | -210 | -156 | -109 |
Cash used in financing activities | -30,210 | -60,642 | -35,109 |
Increase (decrease) in cash and cash equivalents | 11,535 | -80,611 | 5,164 |
Cash and cash equivalents at beginning of period | 96,194 | 176,805 | 171,641 |
Cash and cash equivalents at end of period | $107,729 | $96,194 | $176,805 |
Summary_of_Revenue_from_Relate
Summary of Revenue from Related Party Transactions (Detail) (Abacus [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Abacus [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue earned from Abacus | $91,998 | $71,957 | $52,073 |
Summary_of_Receivable_from_and
Summary of Receivable from and Liability to Related Party (Detail) (Abacus [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Abacus [Member] | ||
Related Party Transaction [Line Items] | ||
Receivable from Abacus | $29,377 | $13,939 |
Payable to Abacus for Economic Benefit Transfer | -8,648 | -8,452 |
Current deferred revenue related to Abacus data processing | -2,571 | -2,571 |
Long-term deferred revenue related to Abacus data processing | -12,857 | -15,428 |
Related party receivable (liability), net | $5,301 | ($12,512) |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Sep. 30, 2012 | |
Goodwill And Intangible Assets [Line Items] | |||||||
Impairment charges | $2,837,000 | $138,435,000 | $138,435,000 | $573,180,000 | $185,240,000 | ||
Amortization expense | 140,000,000 | 159,000,000 | 159,000,000 | ||||
Travelocity [Member] | |||||||
Goodwill And Intangible Assets [Line Items] | |||||||
Impairment charges | 564,000,000 | ||||||
Accumulated goodwill impairment charges | 1,383,000,000 | 1,247,000,000 | 1,247,000,000 | ||||
Travelocity [Member] | North America [Member] | |||||||
Goodwill And Intangible Assets [Line Items] | |||||||
Goodwill | 9,000,000 | ||||||
Goodwill Impairment | 96,000,000 | 58,000,000 | |||||
Impairments on long lived assets | 281,000,000 | ||||||
Impairment charges | 173,000,000 | ||||||
Travelocity [Member] | North America [Member] | Computer equipment [Member] | |||||||
Goodwill And Intangible Assets [Line Items] | |||||||
Impairments on long lived assets | 7,000,000 | ||||||
Travelocity [Member] | North America [Member] | Capitalized Implementation Costs [Member] | |||||||
Goodwill And Intangible Assets [Line Items] | |||||||
Impairments on long lived assets | 6,000,000 | ||||||
Travelocity [Member] | North America [Member] | Software For Internal Use [Member] | |||||||
Goodwill And Intangible Assets [Line Items] | |||||||
Impairments on long lived assets | 30,000,000 | ||||||
Travelocity [Member] | Europe [Member] | |||||||
Goodwill And Intangible Assets [Line Items] | |||||||
Goodwill Impairment | 40,000,000 | 65,000,000 | 5,000,000 | ||||
Impairments on long lived assets | 154,000,000 | ||||||
Impairment charges | 12,000,000 | ||||||
Travelocity [Member] | Europe [Member] | Computer equipment [Member] | |||||||
Goodwill And Intangible Assets [Line Items] | |||||||
Impairments on long lived assets | 4,000,000 | ||||||
Travelocity [Member] | Europe [Member] | Software For Internal Use [Member] | |||||||
Goodwill And Intangible Assets [Line Items] | |||||||
Impairment of definite lived intangible assets | 2,000,000 | ||||||
Impairments on long lived assets | 11,000,000 | ||||||
Holiday Autos [Member] | Other intangible assets [Member] | |||||||
Goodwill And Intangible Assets [Line Items] | |||||||
Impairment of definite lived intangible assets | 1,000,000 | ||||||
Holiday Autos [Member] | Europe [Member] | |||||||
Goodwill And Intangible Assets [Line Items] | |||||||
Goodwill | $36,000,000 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Summary of Change in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | ||
Goodwill [Line Items] | |||||
Goodwill Net, Beginning Balance | $2,152,590 | ||||
Goodwill Net, Ending Balance | 2,138,175 | 2,282,671 | 2,152,590 | ||
Travelocity [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill Accumulated Impairment Loss, Ending Balance | -1,383,000 | -1,247,000 | |||
Discontinued Operations [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill Gross, Beginning Balance | 95,150 | 94,555 | |||
Goodwill Net, Beginning Balance | 48,157 | 54,982 | |||
Adjustments | 595 | [1] | |||
Disposals | -48,157 | ||||
Goodwill Gross, Ending Balance | 46,993 | 95,150 | |||
Goodwill Accumulated Impairment Loss, Beginning Balance | -46,993 | -39,573 | |||
Held for Sale | -7,420 | ||||
Goodwill Accumulated Impairment Loss, Ending Balance | -46,993 | -46,993 | |||
Goodwill Net, Ending Balance | 48,157 | ||||
Continuing Operations [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill Net, Beginning Balance | 2,282,671 | 2,372,375 | |||
Acquired | 399 | 39,713 | |||
Adjustments | -197 | [1] | -131 | [1] | |
Impairment | -135,598 | -128,708 | |||
Disposals | -9,100 | ||||
Held for Sale | -578 | ||||
Goodwill Net, Ending Balance | 2,138,175 | 2,282,671 | |||
Continuing Operations [Member] | Travel Network [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill Net, Beginning Balance | 1,812,484 | 1,813,215 | |||
Acquired | 399 | ||||
Adjustments | -197 | [1] | -153 | [1] | |
Held for Sale | -578 | ||||
Goodwill Net, Ending Balance | 1,812,686 | 1,812,484 | |||
Continuing Operations [Member] | Airline And Hospitality Solutions [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill Net, Beginning Balance | 285,754 | ||||
Acquired | 39,713 | ||||
Adjustments | 22 | [1] | |||
Goodwill Net, Ending Balance | 325,489 | 325,489 | |||
Continuing Operations [Member] | Travelocity [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill Net, Beginning Balance | 144,698 | 273,406 | |||
Impairment | -135,598 | -128,708 | |||
Disposals | -9,100 | ||||
Goodwill Net, Ending Balance | 144,698 | ||||
Segment Continuing And Discontinued Operations [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill Net, Beginning Balance | 2,330,828 | 2,427,357 | |||
Acquired | 399 | 39,713 | |||
Adjustments | -197 | [1] | 464 | [1] | |
Impairment | -135,598 | -128,708 | |||
Disposals | -57,257 | ||||
Held for Sale | -7,998 | ||||
Goodwill Net, Ending Balance | $2,138,175 | $2,330,828 | |||
[1] | Includes net foreign currency effects during the year. |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Summary of Finite Lived Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $2,070,059 | $2,069,768 |
Accumulated Amortization | -1,435,501 | -1,294,514 |
Net Carrying Amount | 634,558 | 775,254 |
Trademarks and brandnames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 868,632 | 868,591 |
Accumulated Amortization | -545,597 | -525,358 |
Net Carrying Amount | 323,035 | 343,233 |
Acquired customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 692,863 | 693,863 |
Accumulated Amortization | -471,597 | -407,331 |
Net Carrying Amount | 221,266 | 286,532 |
Purchased Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 468,639 | 468,389 |
Accumulated Amortization | -392,013 | -338,635 |
Net Carrying Amount | 76,626 | 129,754 |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13,325 | 13,325 |
Accumulated Amortization | -12,894 | -12,390 |
Net Carrying Amount | 431 | 935 |
Acquired contracts, supplier and distributor agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26,600 | 25,600 |
Accumulated Amortization | -13,400 | -10,800 |
Net Carrying Amount | $13,200 | $14,800 |
Summary_of_Future_Finite_Lived
Summary of Future Finite Lived Intangible Assets Amortization Expense (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
2014 | $104,399 | |
2015 | 92,452 | |
2016 | 92,474 | |
2017 | 47,111 | |
2018 | 31,310 | |
2019 and thereafter | 266,812 | |
Net Carrying Amount | $634,558 | $775,254 |
Balance_Sheet_Components_Other
Balance Sheet Components - Other Receivables, Net (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Receivables [Abstract] | |||
Value added tax receivable, net | $23,237 | $18,795 | |
Federal income tax receivable | 2,024 | 16,634 | |
Other | 4,250 | 6,905 | |
Other receivables, net | $28,902 | $29,511 | $42,334 |
Balance_Sheet_Components_Prope
Balance Sheet Components - Property and Equipment, Net (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | $1,221,439 | $1,011,369 | |
Accumulated depreciation and amortization | -824,146 | -722,916 | -602,973 |
Property and equipment, net | 526,722 | 498,523 | 408,396 |
Building and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | 156,086 | 150,424 | |
Furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | 25,749 | 24,558 | |
Computer equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | 275,378 | 253,336 | |
Software developed for internal use [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | $764,226 | $583,051 |
Balance_Sheet_Components_Other1
Balance Sheet Components - Other Assets, Net (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Capitalized implementation costs, net | $175,886 | $152,837 | |
Long-term deferred income taxes | 34,794 | 3,360 | |
Deferred customer discounts | 90,476 | 47,711 | |
Deferred upfront incentive consideration | 81,581 | 69,660 | |
Other | 86,806 | 82,978 | |
Other assets, net | $522,397 | $469,543 | $356,546 |
Balance_Sheet_Components_Other2
Balance Sheet Components - Other Noncurrent Liabilities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Other Liabilities Disclosure [Abstract] | |||
Litigation settlement liability and related deferred revenue | $98,311 | $127,176 | |
Deferred revenue | 50,576 | 60,041 | |
Pension and other postretirement benefits | 55,032 | 109,170 | |
Other | 59,263 | 73,775 | |
Other noncurrent liabilities | $523,728 | $263,182 | $370,162 |
Pension_and_Other_Postretireme4
Pension and Other Postretirement Benefit Plans - Summary of Reconciliation of Changes in Plans Benefit Obligations Fair Value of Assets and Funded Status (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in plan assets: | |||
Ending balance | $342,482 | $334,701 | |
Pension Benefits [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at January 1 | -440,752 | -381,506 | |
Service cost | 0 | 0 | |
Interest cost | -17,930 | -19,744 | |
Actuarial gains (losses), net | 37,416 | -59,434 | |
Benefits paid | 24,805 | 19,932 | |
Benefit obligation at December 31 | -396,461 | -440,752 | |
Change in plan assets: | |||
Beginning balance | 334,701 | 293,255 | |
Actual return on plan assets | 30,007 | 41,143 | |
Employer contributions | 2,579 | 20,235 | |
Benefits paid | -24,805 | -19,932 | |
Ending balance | 342,482 | 334,701 | |
Funded status at December 31 | -53,979 | -106,051 | |
Other Benefits [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at January 1 | -3,045 | -5,723 | |
Service cost | 0 | 0 | 1 |
Interest cost | -41 | -91 | |
Actuarial gains (losses), net | 607 | -100 | |
Benefits paid | 1,665 | 2,869 | |
Benefit obligation at December 31 | -814 | -3,045 | -5,723 |
Change in plan assets: | |||
Employer contributions | 1,665 | 2,869 | |
Benefits paid | -1,665 | -2,869 | |
Funded status at December 31 | ($814) | ($3,045) |
Pension_and_Other_Postretireme5
Pension and Other Postretirement Benefit Plans - Summary of Cumulative Amounts Recognized in Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current liabilities | ($743) | ($1,913) |
Noncurrent liabilities | -54,050 | -107,183 |
Total | -54,793 | -109,096 |
Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Noncurrent liabilities | -53,979 | -106,051 |
Total | -53,979 | -106,051 |
Other Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current liabilities | -743 | -1,913 |
Noncurrent liabilities | -71 | -1,132 |
Total | ($814) | ($3,045) |
Pension_and_Other_Postretireme6
Pension and Other Postretirement Benefit Plans - Summary of Amounts Recognized In Accumulated Other Comprehensive Income (Loss), Net of Deferred Taxes (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial gain (loss) | ($79,909) | ($111,108) | |
Prior service credit | 16,147 | 24,950 | |
Accumulated other comprehensive income (loss) | -62,156 | -63,762 | -86,158 |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial gain (loss) | -79,959 | -113,697 | |
Prior service credit | 16,092 | 17,009 | |
Accumulated other comprehensive income (loss) | -63,867 | -96,688 | |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial gain (loss) | 50 | 2,589 | |
Prior service credit | 55 | 7,941 | |
Accumulated other comprehensive income (loss) | $105 | $10,530 |
Pension_and_Other_Postretireme7
Pension and Other Postretirement Benefit Plans - Summary of Discount Rate Used In Measurement of Benefit Obligations (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Weighted-average discount rate | 5.10% | 4.19% |
Other Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Weighted-average discount rate | 0.55% | 2.07% |
Pension_and_Other_Postretireme8
Pension and Other Postretirement Benefit Plans - Summary of Obligations Recognized in Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial (gain) loss | ($43,787) | $42,614 |
Amortization of actuarial gain (loss) | -7,383 | -4,269 |
Amortization of prior service credit | 1,432 | 1,432 |
Total recognized in other comprehensive income | -49,738 | 39,777 |
Total recognized in net periodic benefit cost and other comprehensive income | -49,492 | 38,035 |
Other Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial (gain) loss | -42 | 187 |
Amortization of actuarial gain (loss) | 3,932 | 1,929 |
Amortization of prior service credit | 12,348 | 11,397 |
Total recognized in other comprehensive income | 16,238 | 13,513 |
Total recognized in net periodic benefit cost and other comprehensive income | $278 |
Pension_and_Other_Postretireme9
Pension and Other Postretirement Benefit Plans - Summary of Principal Assumptions Used In Measurement of Net Benefit Costs (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.19% | 5.32% | 5.88% |
Expected return on plan assets | 7.75% | 7.75% | 7.75% |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 1.16% | 2.32% | 2.69% |
Recovered_Sheet1
Pension and Other Postretirement Benefit Plans - Summary of Fair Value of LPP Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | $342,482 | $334,701 | |
Mutual Fund [Member] | Foreign Large Value [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 42,635 | 43,183 | |
Mutual Fund [Member] | Large Cap Blend [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 43,222 | 40,944 | |
Mutual Fund [Member] | Large Cap Growth Equity [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 21,433 | 20,790 | |
Mutual Fund [Member] | Money Market Funds [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 6,437 | 4,474 | |
Common Collective Trusts [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 142,289 | 142,186 | |
Common Collective Trusts [Member] | Real Estate [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 21,714 | 19,488 | |
Common Collective Trusts [Member] | Foreign [Member] | Sale of Stock [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 43,107 | 43,429 | |
Common Collective Trusts [Member] | UNITED STATES | Sale of Stock [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 21,645 | 20,207 | |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 113,727 | 109,391 | |
Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | Foreign Large Value [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 42,635 | 43,183 | |
Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | Large Cap Blend [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 43,222 | 40,944 | |
Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | Large Cap Growth Equity [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 21,433 | 20,790 | |
Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | Money Market Funds [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 6,437 | 4,474 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 207,041 | 205,822 | |
Fair Value, Inputs, Level 2 [Member] | Common Collective Trusts [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 142,289 | 142,186 | |
Fair Value, Inputs, Level 2 [Member] | Common Collective Trusts [Member] | Foreign [Member] | Sale of Stock [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 43,107 | 43,429 | |
Fair Value, Inputs, Level 2 [Member] | Common Collective Trusts [Member] | UNITED STATES | Sale of Stock [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 21,645 | 20,207 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 21,714 | 19,488 | |
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | 21,714 | 19,488 | 17,755 |
Fair Value, Inputs, Level 3 [Member] | Common Collective Trusts [Member] | Real Estate [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total plan assets at fair value | $21,714 | $19,488 |
Recovered_Sheet2
Pension and Other Postretirement Benefit Plans - Summary of change in Plan Assets Valued Using Significant Unobservable Inputs (level 3) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Ending balance | $342,482 | $334,701 |
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Ending balance | 21,714 | 19,488 |
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Beginning balance | 19,488 | 17,755 |
Contributions | 282 | 265 |
Net distributions | -282 | -265 |
Advisory fee | -220 | -200 |
Net investment income | 1,045 | 961 |
Change in unrealized gain (loss) | 1,382 | 936 |
Net realized gain (loss) | 19 | 36 |
Ending balance | $21,714 | $19,488 |
Recovered_Sheet3
Pension and Other Postretirement Benefit Plans - Summary of Estimated Future Benefit Payments Under Pension and Other Postretirement Benefit Plans (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Pension Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2014 | $25,000 |
2015 | 26,000 |
2016 | 27,000 |
2017 | 27,000 |
2018 | 28,000 |
2019-2023 | 147,000 |
Other Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2014 | $1,000 |
Income_Taxes_Summary_of_Compon
Income Taxes - Summary of Components of Pretax Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of pre-tax income | |||||||
Domestic | ($185,391) | ($1,077,917) | ($42,530) | ||||
Foreign | 80,907 | 261,120 | 21,042 | ||||
Income (loss) from continuing operations before income taxes | $69,975 | $10,932 | $60,886 | ($109,453) | ($104,484) | ($816,797) | ($21,488) |
Income_Taxes_Summary_of_Provis
Income Taxes - Summary of Provision for Income Taxes Relating to Continuing Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current portion: | |||||||
Federal | $19,822 | $7,383 | $1,812 | ||||
State and Local | 10,902 | 6,757 | 2,772 | ||||
Non U.S. | 19,937 | 23,062 | 18,813 | ||||
Total current | 50,661 | 37,202 | 23,397 | ||||
Deferred portion: | |||||||
Federal | -62,557 | -224,424 | 30,780 | ||||
State and Local | -2,772 | -10,364 | 889 | ||||
Non U.S. | 639 | 2,515 | 2,740 | ||||
Total deferred | -64,690 | -232,273 | 34,409 | ||||
Total (benefit) provision for income taxes | $30,956 | $7,861 | $27,878 | ($5,229) | ($14,029) | ($195,071) | $57,806 |
Income_Taxes_Summary_of_Compon1
Income Taxes - Summary of Components of Income Tax Provision (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | |||||||
Income tax provision at statutory federal income tax rate | ($36,569) | ($285,879) | ($7,521) | ||||
State income taxes, net of federal benefit | 5,340 | -246 | 2,445 | ||||
Impact of non U.S. taxing jurisdictions, net | 5,565 | -119 | -2,690 | ||||
Goodwill impairment | 33,454 | 28,630 | 64,203 | ||||
Impact of sale of business | -11,798 | -15,209 | |||||
Write off of Intercompany Debt | -16,315 | ||||||
Tax loss attributable to non controlling interest | 19,694 | 2,570 | |||||
Excise tax penalties | 4,333 | ||||||
Valuation allowance | -16,010 | 72,261 | |||||
Other, net | 1,656 | 2,112 | -1,201 | ||||
Total (benefit) provision for income taxes | $30,956 | $7,861 | $27,878 | ($5,229) | ($14,029) | ($195,071) | $57,806 |
Income_Taxes_Summary_of_Deferr
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Accrued expenses | $34,686 | $97,743 |
Employee benefits other than pension | 23,932 | 10,496 |
Deferred revenue | 67,601 | 69,991 |
Pension obligations | 18,613 | 39,720 |
Tax loss carryforwards | 376,427 | 714,175 |
Non U.S. operations | 33,315 | 10,236 |
Unrealized gains and losses | -6,794 | 8,408 |
Incentive consideration | -1,101 | -791 |
Tax credit carryforwards | 29,312 | 8,341 |
TVL Common suspended loss | 24,718 | 24,400 |
Other | 14,531 | 15,277 |
Total deferred tax assets | 615,240 | 997,996 |
Deferred tax liabilities: | ||
Depreciation and amortization | -7,844 | -4,901 |
Software developed for internal use | -190,362 | -149,242 |
Intangible assets | -89,895 | -119,585 |
Write off of Intercompany Debt | -410,289 | |
Currency translation adjustment | -8,085 | -9,243 |
Total deferred tax liabilities | -296,186 | -693,260 |
Valuation allowance | -253,082 | -282,091 |
Net deferred tax asset | $65,972 | $22,645 |
Income_Taxes_Summary_of_Reconc
Income Taxes - Summary of Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2014 |
Income Tax Disclosure [Abstract] | ||||
Balance at beginning of year | $54,016 | $39,080 | $38,072 | $69,000 |
Additions for tax positions taken in the current year | 10,874 | 16,367 | 3,016 | |
Additions for tax positions of prior years | 5,572 | 3,584 | 1,050 | |
Reductions for tax positions of prior years | -196 | -3,113 | -1,691 | |
Reductions for tax positions of expired statute of limitations | -3,573 | -1,902 | -1,367 | |
Settlements | -5,452 | |||
Balance at end of year | $61,241 | $54,016 | $39,080 | $69,000 |
Debt_Schedule_of_Outstanding_D
Debt - Schedule of Outstanding Debt (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | 9-May-12 | Feb. 27, 2012 | Feb. 18, 2013 | Aug. 15, 2012 | Sep. 30, 2014 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||||||
Current portion of debt | 86,117 | $23,232 | |||||
Long-term debt | 3,643,548 | 3,065,440 | 3,420,927 | ||||
Book value of outstanding debt | 3,729,665 | 3,088,000 | 3,444,159 | ||||
Initial Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | One-month LIBOR | ||||||
Initial Term Loan Facility [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable rate | 5.75% | 2.00% | 5.75% | ||||
Incremental Term Loan [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable rate | 6.00% | ||||||
Senior Secured Credit [Member] | Term Loan B [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | L+4.00 % | L+3.00 % | |||||
Debt variable rate | 4.00% | ||||||
Rate | 5.25% | ||||||
Debt Instrument, maturity date | 19-Feb-19 | 19-Feb-19 | |||||
Book value of outstanding debt | 1,747,378 | ||||||
Senior Secured Credit [Member] | Term Loan B [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable rate | 4.00% | 3.00% | |||||
Senior Secured Credit [Member] | Term Loan B Incremental Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | L+3.50 % | L+3.00 % | |||||
Debt variable rate | 3.50% | ||||||
Rate | 4.50% | ||||||
Debt Instrument, maturity date | 19-Feb-19 | 19-Feb-19 | |||||
Book value of outstanding debt | 349,125 | ||||||
Senior Secured Credit [Member] | Term Loan B Incremental Term Loan Facility [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable rate | 3.50% | 3.00% | |||||
Senior Secured Credit [Member] | Term Loan C [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | L+3.00 % | L+2.50 % | |||||
Debt variable rate | 3.00% | ||||||
Rate | 4.00% | ||||||
Debt Instrument, maturity date | 31-Dec-17 | 31-Dec-17 | |||||
Book value of outstanding debt | 360,477 | ||||||
Senior Secured Credit [Member] | Term Loan C [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable rate | 3.00% | 2.50% | |||||
Senior Secured Credit [Member] | Revolver L+3.75% Due 2018 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | L+3.75 % | ||||||
Debt Instrument, maturity date | 19-Feb-18 | ||||||
Book value of outstanding debt | 0 | 0 | |||||
Senior Secured Credit [Member] | Revolver L+3.75% Due 2018 [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable rate | 3.75% | ||||||
Senior Secured Credit [Member] | Initial Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | L+2.00 % | ||||||
Debt Instrument, maturity date | 30-Sep-14 | ||||||
Book value of outstanding debt | 238,335 | ||||||
Senior Secured Credit [Member] | Initial Term Loan Facility [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable rate | 2.00% | ||||||
Senior Secured Credit [Member] | First Extended Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | L+5.75 % | ||||||
Debt Instrument, maturity date | 30-Sep-17 | ||||||
Book value of outstanding debt | 1,162,622 | ||||||
Senior Secured Credit [Member] | First Extended Term Loan Facility [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable rate | 5.75% | ||||||
Senior Secured Credit [Member] | Second Extended Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | L+5.75 % | ||||||
Debt Instrument, maturity date | 31-Dec-17 | ||||||
Book value of outstanding debt | 401,515 | ||||||
Senior Secured Credit [Member] | Second Extended Term Loan Facility [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable rate | 5.75% | ||||||
Senior Secured Credit [Member] | Incremental Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | L+6.00 % | ||||||
Debt Instrument, maturity date | 31-Dec-17 | ||||||
Book value of outstanding debt | 370,536 | ||||||
Senior Secured Credit [Member] | Incremental Term Loan [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable rate | 6.00% | ||||||
Senior unsecured notes due 2016 [Member] | 8.35% Due 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | 8.35% | 8.35% | |||||
Debt Instrument, maturity date | 15-Mar-16 | 31-Mar-16 | |||||
Book value of outstanding debt | 389,321 | 385,099 | |||||
Senior secured notes due 2019 [Member] | 8.50% Due 2019 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | 8.50% | 8.50% | |||||
Debt Instrument, maturity date | 15-May-19 | 15-May-19 | |||||
Book value of outstanding debt | 799,823 | 480,000 | 801,712 | ||||
Mortgage Facility [Member] | 5.80% Due 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Rate | 5.80% | 5.80% | |||||
Debt Instrument, maturity date | 31-Mar-17 | 31-Mar-17 | |||||
Book value of outstanding debt | 83,541 | $84,340 |
Debt_Publicly_Issued_Senior_Un
Debt (Publicly Issued Senior Unsecured Notes) - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2006 | Dec. 31, 2007 | Apr. 30, 2009 | Aug. 31, 2001 | Sep. 30, 2011 | Mar. 16, 2007 | |
Debt And Credit Agreements [Line Items] | |||||||||||
Proceeds from debt | $148,307,000 | $2,540,063,000 | $2,540,063,000 | $2,225,082,000 | |||||||
Repayment of debt | 797,028,000 | 2,239,538,000 | 2,261,061,000 | 2,924,745,000 | 30,150,000 | ||||||
Senior unsecured notes due 2016 [Member] | 2016 Notes [Member] | |||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||
Face value of debt instruments at the time of issuance | 400,000,000 | ||||||||||
Debt Instrument, maturity date | 15-Mar-16 | ||||||||||
Debt instrument interest rate | 6.35% | 8.35% | |||||||||
Proceeds from debt | 397,000,000 | ||||||||||
Interest paid | 29,000,000 | ||||||||||
Description of total amount of repayment due on an annual basis | Under the terms of the 2016 Notes, we paid $29 million in interest charges in 2007 and are obligated to pay $34 million per year afterwards until 2016. | ||||||||||
Senior unsecured notes due 2016 [Member] | Two Thousand Eleven Notes [Member] | |||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||
Face value of debt instruments at the time of issuance | 400,000,000 | ||||||||||
Debt Instrument, maturity date | 1-Aug-11 | ||||||||||
Debt instrument interest rate | 7.35% | ||||||||||
Proceeds from debt | 397,000,000 | ||||||||||
Repayment of debt | 76,000,000 | 324,000,000 | |||||||||
Interest paid | 12,000,000 | ||||||||||
Bridge Loan [Member] | |||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||
Repayment of debt | $400,000,000 |
Comprehensive_Income_Loss_Recl
Comprehensive Income (Loss) - Reclassification Adjustments, Net of Tax, for (Gains) Losses Included in Net Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Foreign currency translation | $8,162 | $8,162 | [1] | $888 | [1] | ||||
Derivative | 1,684 | 2,703 | 2,747 | 6,312 | |||||
Prior service costs and actuarial gains | 574 | -1,450 | 1,606 | -3,981 | -5,409 | -6,716 | -7,285 | ||
Total | 11,291 | 12,968 | 13,457 | ||||||
Foreign Exchange Contract [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Derivative | -915 | 2,890 | -8,508 | ||||||
Interest rate swap contracts [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Derivative | $9,453 | $15,906 | $29,250 | ||||||
[1] | Relates to the dispositions of Zuji in 2013 and TravelGuru and Sabre Pacific in 2012. See Note 4, Discontinued Operations and Dispositions. |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2012 | |
Equity [Abstract] | |||
Common Stock, shares authorized | 450,000,000 | 450,000,000 | 450,000,000 |
Common Stock, par value | $0.01 | $0.01 | $0.01 |
Common Stock, shares issued | 178,633,409 | 265,224,958 | 177,911,922 |
Common Stock, shares outstanding | 178,491,568 | 264,787,572 | 177,789,402 |
Common stock dividend declared | $0 |
Options_and_Other_Equity_Based
Options and Other Equity Based Awards - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 22, 2010 | Dec. 31, 2010 | Sep. 14, 2012 | Nov. 30, 2012 | Dec. 31, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation expense | $22,434,000 | $5,446,000 | $9,086,000 | $9,834,000 | $7,334,000 | |||||
Expense related to grant of restricted stock | 1,000,000 | |||||||||
Time Based Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Equity-based awards, vesting periods | 5 years | |||||||||
Unrecognized compensation expense | 21,000,000 | |||||||||
Equity-based awards, expiration periods | 10 years | |||||||||
Share based compensation arrangement by Share based payment award, terms of award | We issue, or have issued, time-based equity awards in the form of SARs and stock options under the Sovereign MEIP, TVL.com SOA, Travelocity Equity 2011, Travelocity Equity 2012, and the Sovereign 2012 MEIP. Generally, these awards vest over five years, or immediately upon a liquidity event, and are not exercisable more than ten years after the date of grant. | |||||||||
Share based compensation expense | 4,000,000 | 7,000,000 | 7,000,000 | |||||||
Unrecognized compensation expense that will be recognized over a weighted-average period | 2 years | |||||||||
SARs [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Equity-based awards, vesting periods | 4 years | |||||||||
SARs [Member] | Quarterly Basis [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options vesting percentage | 75.00% | |||||||||
SARs [Member] | After First Anniversary of Grant Date [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options vesting percentage | 25.00% | |||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock, shares granted | 0 | |||||||||
Performance Based Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation expense | 2,000,000 | |||||||||
Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options exercised, intrinsic value | 5,000,000 | 4,000,000 | 1,000,000 | |||||||
Time Based Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock based awards, value | 3,000,000 | |||||||||
Performance Restricted Stock Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Equity-based awards, vesting periods | 4 years | |||||||||
Share based compensation expense | 4,000,000 | |||||||||
Number of restricted shares | 1,304,063 | |||||||||
Sovereign Management Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options, aggregate intrinsic value | 232,000,000 | |||||||||
Stock options vested and exercisable, aggregate intrinsic value | 213,000,000 | |||||||||
Number of employees impacted by modifications of stock options | 6 | 6 | ||||||||
Sovereign Management Equity Incentive Plan [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Additional expenses related to plan modifications | 1,000,000 | 1,000,000 | 0 | |||||||
Sovereign Management Equity Incentive Plan [Member] | Time Based Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Equity-based awards, vesting periods | 5 years | |||||||||
Sovereign Management Equity Incentive Plan [Member] | Time Based Option [Member] | Quarterly Basis [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options vesting percentage | 75.00% | |||||||||
Sovereign Management Equity Incentive Plan [Member] | Time Based Option [Member] | After First Anniversary of Grant Date [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options vesting percentage | 25.00% | |||||||||
Sovereign Management Equity Incentive Plan [Member] | Common Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 22,318,298 | |||||||||
TVL Common, INC. Restricted Stock Grant Agreement [Member] | Quarterly Basis [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Increase in exercise price, percentage | 6.00% | |||||||||
TVL Common, INC. Restricted Stock Grant Agreement [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 0 | 17,828,085 | ||||||||
TVL Common, INC. Restricted Stock Grant Agreement [Member] | Time Based Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Equity-based awards, vesting periods | 5 years | |||||||||
TVL Common, INC. Restricted Stock Grant Agreement [Member] | Time Based Option [Member] | Quarterly Basis [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options vesting percentage | 75.00% | |||||||||
TVL Common, INC. Restricted Stock Grant Agreement [Member] | Time Based Option [Member] | After First Anniversary of Grant Date [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options vesting percentage | 25.00% | |||||||||
Travelocity.com LLC Stock Option Grant Agreement [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 2,801,888 | |||||||||
Travelocity.com LLC Stock Option Grant Agreement [Member] | Common Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 4,286,418 | |||||||||
Sovereign Holdings, Inc. Restricted Stock Grant Agreement [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Equity-based awards, vesting periods | 3 years | |||||||||
Restricted stock, shares granted | 354,191 | |||||||||
Sovereign Holdings, Inc. Restricted Stock Grant Agreement [Member] | Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock based awards, value | 3,000,000 | |||||||||
Sovereign Holdings, Inc. Restricted Stock Grant Agreement [Member] | Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock based awards, forfeiture percentage | 30.00% | |||||||||
SARs [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Additional expenses related to plan modifications | 1,000,000 | |||||||||
SARs [Member] | After First Anniversary of Grant Date [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options vesting percentage | 25.00% | |||||||||
Tandem SARs [Member] | Common Stock [Member] | SARs [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 16,565,408 | |||||||||
Tandem SARs [Member] | Common Units [Member] | SARs [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 16,565,408 | |||||||||
Travelocity Equity 2012 Plan [Member] | Common Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 7,505,466 | |||||||||
Travelocity Equity 2012 Plan [Member] | Common Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 7,505,466 | |||||||||
Sovereign 2012 MEIP [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 2,384,558 | |||||||||
Stock options, aggregate intrinsic value | 34,000,000 | |||||||||
Stock options vested and exercisable, aggregate intrinsic value | $4,000,000 | |||||||||
Sovereign 2012 MEIP [Member] | Time Based Option [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Equity-based awards, vesting periods | 5 years | |||||||||
Sovereign 2012 MEIP [Member] | Time Based Option [Member] | Minimum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Equity-based awards, vesting periods | 4 years | |||||||||
Sovereign 2012 MEIP [Member] | Time Based Option [Member] | Quarterly Basis [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options vesting percentage | 75.00% | |||||||||
Sovereign 2012 MEIP [Member] | Time Based Option [Member] | After First Anniversary of Grant Date [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options vesting percentage | 25.00% | |||||||||
Sovereign 2012 MEIP [Member] | Common Stock [Member] | Sovereign Management Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 1,800,000 | 2,568,561 | ||||||||
Sovereign 2012 MEIP [Member] | Common Stock [Member] | Compensation Committee [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 2,160,000 | |||||||||
Sovereign 2012 MEIP [Member] | Common Stock [Member] | Forfeited [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock reserved and available for issuance | 4,150,967 |
Options_and_Other_Equity_Based1
Options and Other Equity Based Awards - Weighted Average Assumptions Used to Estimate Fair Value of Stock Options Granted (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | |||
Sovereign 2012 MEIP [Member] | ||||||
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | ||||||
Exercise price | $11.91 | $9.96 | $8.59 | |||
Average risk-free interest rate | 1.53% | 0.93% | 1.88% | |||
Expected life (in years) | 6 years 1 month 10 days | 6 years 5 months 9 days | 6 years 5 months 9 days | |||
Implied volatility | 30.75% | 31.42% | 35.90% | |||
Weighted-average fair value | $3.89 | $3.29 | $3.36 | |||
Travelocity.com LLC Stock Option Grant Agreement [Member] | ||||||
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | ||||||
Exercise price | $0.12 | $0.16 | ||||
Average risk-free interest rate | 1.53% | 2.07% | ||||
Expected life (in years) | 6 years 5 months 9 days | 6 years 5 months 9 days | ||||
Implied volatility | 45.00% | 42.82% | ||||
Weighted-average fair value | $0.04 | $0.06 | ||||
Tandem SARs [Member] | ||||||
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | ||||||
Exercise price | $1.45 | [1] | $1.74 | [1] | ||
Average risk-free interest rate | 1.02% | [1] | 2.57% | [1] | ||
Expected life (in years) | 6 years 1 month 10 days | [1] | 6 years 5 months 9 days | [1] | ||
Implied volatility | 45.02% | [1] | 42.50% | [1] | ||
Weighted-average fair value | $0.64 | [1] | $0.61 | [1] | ||
Sovereign Management Equity Incentive Plan [Member] | ||||||
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | ||||||
Exercise price | $8.41 | |||||
Average risk-free interest rate | 1.41% | |||||
Expected life (in years) | 6 years 5 months 9 days | |||||
Implied volatility | 35.45% | |||||
Weighted-average fair value | $3.17 | |||||
Performance Based Stock Options [Member] | ||||||
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | ||||||
Exercise price | $5 | |||||
Average risk-free interest rate | 4.15% | |||||
Expected life (in years) | 6 years 10 months 6 days | |||||
Implied volatility | 36.40% | |||||
Weighted-average fair value | $1.81 | |||||
[1] | Represents the weighted average of Tandem SARs granted under the Travelocity Equity 2011 and Travelocity Equity 2012 plans. |
Options_and_Other_Equity_Based2
Options and Other Equity Based Awards - Share Based Payments Activities (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Mar. 20, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock options quantity | |||
Granted | 2,298,478 | ||
Weighted-Average Exercise Price | |||
Granted | $16.68 | ||
Sovereign Management Equity Incentive Plan [Member] | |||
Stock options quantity | |||
Outstanding and Nonvested at beginning | 17,235,250 | ||
Exercised | -596,285 | ||
Cancelled | -987,896 | ||
Outstanding and Nonvested at ending | 15,651,069 | 17,235,250 | |
Vested and exercisable ending balance | 14,170,926 | ||
Weighted-Average Exercise Price | |||
Outstanding and Nonvested at beginning | $4.84 | ||
Exercised | $4.92 | ||
Cancelled | $5.14 | ||
Outstanding and Nonvested at ending | $4.81 | $4.84 | |
Vested and exercisable at December 31, 2013 | $4.59 | ||
Weighted - Average Remaining Contractual Term (in years) | |||
Outstanding balance | 4 years 7 months 28 days | 5 years 8 months 5 days | |
Vested and exercisable ending balance | 4 years 7 months 17 days | ||
Sovereign Management Equity Incentive Plan [Member] | Performance Based Stock Options [Member] | |||
Stock options quantity | |||
Outstanding and Nonvested at ending | 776,037 | 776,037 | |
Weighted-Average Exercise Price | |||
Outstanding and Nonvested at ending | $5 | $5 | |
Sovereign 2012 MEIP [Member] | |||
Stock options quantity | |||
Outstanding and Nonvested at beginning | 1,505,225 | ||
Granted | 2,910,621 | ||
Cancelled | -153,500 | ||
Outstanding and Nonvested at ending | 4,262,346 | 1,505,225 | |
Vested and exercisable ending balance | 485,546 | ||
Weighted-Average Exercise Price | |||
Outstanding and Nonvested at beginning | $9.96 | ||
Granted | $11.91 | ||
Cancelled | $10.18 | ||
Outstanding and Nonvested at ending | $11.29 | $9.96 | |
Vested and exercisable at December 31, 2013 | $10.98 | ||
Weighted - Average Remaining Contractual Term (in years) | |||
Outstanding balance | 8 years 2 months 5 days | 8 years 11 months 1 day | |
Vested and exercisable ending balance | 9 years 1 month 21 days | ||
Travelocity.com LLC Stock Option Grant Agreement [Member] | Time Based Option [Member] | |||
Stock options quantity | |||
Outstanding and Nonvested at beginning | 1,960,231 | ||
Cancelled | -475,701 | ||
Outstanding and Nonvested at ending | 1,484,530 | 1,960,231 | |
Vested and exercisable ending balance | 1,009,904 | ||
Weighted-Average Exercise Price | |||
Outstanding and Nonvested at beginning | $0.43 | ||
Cancelled | $0.48 | ||
Outstanding and Nonvested at ending | $0.41 | $0.43 | |
Vested and exercisable at December 31, 2013 | $0.52 | ||
Weighted - Average Remaining Contractual Term (in years) | |||
Outstanding balance | 6 years 7 months 28 days | 7 years 7 months 2 days | |
Vested and exercisable ending balance | 6 years 6 months 22 days | ||
Tandem SARs [Member] | SARs [Member] | |||
Stock options quantity | |||
Outstanding and Nonvested at beginning | 21,607,122 | ||
Cancelled | -3,487,238 | ||
Outstanding and Nonvested at ending | 18,119,884 | 21,607,122 | |
Weighted-Average Exercise Price | |||
Outstanding and Nonvested at beginning | $1.45 | ||
Cancelled | $1.45 | ||
Outstanding and Nonvested at ending | $1.45 | $1.45 | |
Weighted - Average Remaining Contractual Term (in years) | |||
Outstanding balance | 6 years 4 months 17 days | 7 years 4 months 17 days |
Options_and_Other_Equity_Based3
Options and Other Equity Based Awards - Restricted Stock Activities (Detail) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock Units (RSUs) [Member] | |
Quantity | |
Restricted stock, beginning of year | 236,127 |
Granted | 0 |
Vested | -118,063 |
Restricted stock, end of year | 118,064 |
Weighted Average Fair Value Per Award | |
Restricted stock, beginning of year | $8.47 |
Granted | $0 |
Vested | $8.47 |
Restricted stock, end of year | $8.47 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Minimum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Management service fee | $5,000,000 | $5,000,000 | ||
Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Management service fee | 7,000,000 | 7,000,000 | ||
Management Services Agreement [Member] | Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Management service fee | 7,000,000 | 7,000,000 | 7,000,000 | |
Reimbursed expenses | 1,000,000 | |||
Amount to be paid on the completion of management service agreement | $21,000,000 |
Future_Minimum_Payments_under_
Future Minimum Payments under Contractual Obligations (Detail) (USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligations due 2014 | $789,725 | [1] |
Contractual Obligations due 2015 | 532,806 | [1] |
Contractual Obligations due 2016 | 894,685 | [1] |
Contractual Obligations due 2017 | 556,094 | [1] |
Contractual Obligations due 2018 | 254,059 | [1] |
Contractual Obligations due Thereafter | 2,881,874 | [1] |
Contractual Obligations | 5,975,863 | [1] |
Letter of Credit [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligations due 2014 | 65,238 | [2] |
Contractual Obligations due 2015 | 128 | [2] |
Contractual Obligations due 2016 | 1,621 | [2] |
Contractual Obligations due Thereafter | 151 | [2] |
Contractual Obligations | 67,138 | [2] |
Total Debt [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligations due 2014 | 320,662 | [3] |
Contractual Obligations due 2015 | 315,929 | [3] |
Contractual Obligations due 2016 | 726,845 | [3] |
Contractual Obligations due 2017 | 360,459 | [3] |
Contractual Obligations due 2018 | 244,391 | [3] |
Contractual Obligations due Thereafter | 2,855,934 | [3] |
Contractual Obligations | 4,824,220 | [3] |
Headquarters Mortgage [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligations due 2014 | 5,984 | [4] |
Contractual Obligations due 2015 | 5,984 | [4] |
Contractual Obligations due 2016 | 5,984 | [4] |
Contractual Obligations due 2017 | 80,895 | [4] |
Contractual Obligations | 98,847 | [4] |
Operating Lease Obligations [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligations due 2014 | 31,450 | [5] |
Contractual Obligations due 2015 | 27,217 | [5] |
Contractual Obligations due 2016 | 23,363 | [5] |
Contractual Obligations due 2017 | 15,435 | [5] |
Contractual Obligations due 2018 | 9,668 | [5] |
Contractual Obligations due Thereafter | 25,789 | [5] |
Contractual Obligations | 132,922 | [5] |
IT outsourcing agreement [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligations due 2014 | 165,983 | [6] |
Contractual Obligations due 2015 | 156,492 | [6] |
Contractual Obligations due 2016 | 135,307 | [6] |
Contractual Obligations due 2017 | 99,305 | [6] |
Contractual Obligations | 557,087 | [6] |
Purchase Orders [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligations due 2014 | 137,456 | [7] |
Contractual Obligations due 2015 | 2,146 | [7] |
Contractual Obligations due 2016 | 1,565 | [7] |
Contractual Obligations | 141,167 | [7] |
WNS agreement [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligations due 2014 | 23,777 | [8] |
Contractual Obligations due 2015 | 24,910 | [8] |
Contractual Obligations | 48,687 | [8] |
Other Purchase Obligations [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligations due 2014 | 39,175 | [9] |
Contractual Obligations | 39,175 | [9] |
Unrecognized Tax Benefit [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligations | $66,620 | [10] |
[1] | Excludes pension obligations; see Note 9, Pension and Other Postretirement Benefit Plans. | |
[2] | Our letters of credit consist of stand-by letters of credit, underwritten by a group of lenders, which we primarily issue for certain regulatory purposes as well as to certain hotel properties to secure our payment for hotel room transactions. The contractual expiration dates of these letters of credit are shown in the table above. There were no claims made against any stand-by letters of credit during the years ended December 31, 2013, 2012 and 2011. | |
[3] | Includes all interest and principal related to the 2016 Notes and 2019 Notes. Also includes all interest and principal related to borrowings under the Amended and Restated Credit Agreement, which will mature in 2017 and 2019 and the Incremental Term Facility, which will mature in 2017. We are required to pay a percentage of the excess cash flow generated each year to our lenders which is not reflected in the table above. Interest on the term loan is based on the LIBOR rate plus a base margin and includes the effect of interest rate swaps. For purposes of this table, we have used projected LIBOR rates for all future periods (see Note 11, Debt). | |
[4] | Includes all interest and principal related to $85 million mortgage facility, which matures on March 1, 2017 (see Note 11, Debt). | |
[5] | We lease approximately two million square feet of office space in 97 locations in 48 countries. Lease payment escalations are based on fixed annual increases, local consumer price index changes or market rental reviews. We have renewal options of various term lengths at 65 locations, and we have no purchase options and no restrictions imposed by our leases concerning dividends or additional debt. | |
[6] | Represents minimum amounts due to Hewlett-Packard under the terms of an outsourcing agreement through which HP manages a significant portion of our information technology systems. | |
[7] | Purchase obligations represent an estimate of all open purchase orders and contractual obligations in the ordinary course of business for which we have not received the goods or services as of December 31, 2013. Although open purchase orders are considered enforceable and legally binding, the terms generally allow us the option to cancel, reschedule and adjust our requirements based on our business needs prior to the delivery of goods or performance of services. | |
[8] | Represents expected payments to WNS Global Services, an entity to which we outsource a portion of our Travelocity contact center operations and back-office fulfillment though 2015. The expected payments are based upon current and historical transactions. | |
[9] | Consists primarily of minimum payments due under various marketing agreements, management services monitoring fees and media strategy, planning and placement agreements. | |
[10] | [Unrecognized tax benefits include associated interest and penalties. The timing of related cash payments for substantially all of these liabilities is inherently uncertain because the ultimate amount and timing of such liabilities is affected by factors which are variable and outside our control.] |
Future_Minimum_Payments_under_1
Future Minimum Payments under Contractual Obligations (Parenthetical) (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Claims | Claims | Claims | ||
Commitment And Contingencies [Line Items] | ||||
Contractual Obligations | $5,975,863 | [1] | ||
Office space leased under operating lease | 2,000,000 | |||
Office space leased, number of locations | 97 | |||
Office space leased, number of countries | 48 | |||
Letter of Credit [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Contractual Obligations | 67,138 | [2] | ||
Number of claims made against any stand-by letters of credit | 0 | 0 | 0 | |
Senior Secured Term Loan C [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Debt maturity year | 2017 | |||
Senior Secured Term Loan B [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Debt maturity year | 2019 | |||
Term Loan B Incremental Term Loan Facility [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Debt maturity year | 2017 | |||
Headquarters Mortgage [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Contractual Obligations | 98,847 | [3] | ||
Headquarters Mortgage [Member] | March 2017 [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Contractual Obligations | $85,000 | |||
[1] | Excludes pension obligations; see Note 9, Pension and Other Postretirement Benefit Plans. | |||
[2] | Our letters of credit consist of stand-by letters of credit, underwritten by a group of lenders, which we primarily issue for certain regulatory purposes as well as to certain hotel properties to secure our payment for hotel room transactions. The contractual expiration dates of these letters of credit are shown in the table above. There were no claims made against any stand-by letters of credit during the years ended December 31, 2013, 2012 and 2011. | |||
[3] | Includes all interest and principal related to $85 million mortgage facility, which matures on March 1, 2017 (see Note 11, Debt). |
Commitment_Contingencies_Rent_
Commitment Contingencies - Rent Expense for Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases [Abstract] | |||
Rent expense | $40,474 | $36,385 | $39,846 |
Sublease rent | -3,574 | ||
Total rent expense | $40,474 | $36,385 | $36,272 |
Segment_Information_Adjusted_G
Segment Information - Adjusted Gross Margin (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | $358,354 | $369,054 | $1,044,076 | $1,084,535 | $1,419,047 | $1,418,289 | $1,333,754 |
Operating Segments [Member] | Travel Network [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | 216,214 | 207,506 | 670,023 | 652,568 | 860,793 | 843,863 | 772,753 |
Operating Segments [Member] | Airline And Hospitality Solutions [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | 94,747 | 64,539 | 235,546 | 183,237 | 262,386 | 218,421 | 185,147 |
Operating Segments [Member] | Travelocity [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | 66,013 | 102,710 | 184,124 | 277,895 | 353,489 | 413,802 | 447,790 |
Intersegment Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | -41 | -123 | -7,498 | -514 | -717 | -1,010 | -1,083 |
Corporate, Non-Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | -18,579 | -5,578 | -38,119 | -28,651 | -56,904 | -56,787 | -70,853 |
Scenario, Previously Reported [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | 1,383,809 | 1,389,862 | 1,330,514 | ||||
Scenario, Previously Reported [Member] | Operating Segments [Member] | Travel Network [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | 860,793 | 843,863 | 772,753 | ||||
Scenario, Previously Reported [Member] | Operating Segments [Member] | Airline And Hospitality Solutions [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | 262,386 | 218,421 | 185,147 | ||||
Scenario, Previously Reported [Member] | Operating Segments [Member] | Travelocity [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | 353,489 | 413,802 | 447,790 | ||||
Scenario, Previously Reported [Member] | Intersegment Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | -717 | -1,010 | -1,083 | ||||
Scenario, Previously Reported [Member] | Corporate, Non-Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Adjusted Gross Margin | ($92,142) | ($85,214) | ($74,093) |
Revenues_and_LongLived_Assets_
Revenues and Long-Lived Assets Excluding Goodwill and intangible Assets by Geographic Region (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenue | $756,303 | $775,823 | $2,229,286 | $2,303,399 | $3,049,525 | $2,974,364 | $2,855,961 |
Property and equipment, net | 526,722 | 526,722 | 498,523 | 408,396 | |||
UNITED STATES | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenue | 1,765,699 | 1,857,771 | 1,754,830 | ||||
Property and equipment, net | 472,517 | 394,625 | |||||
Europe [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenue | 501,953 | 470,112 | 451,734 | ||||
Property and equipment, net | 10,269 | 7,909 | |||||
All Other Countries [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenue | 781,873 | 646,481 | 649,397 | ||||
Property and equipment, net | $15,737 | $5,862 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Feb. 20, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 19, 2013 |
February 2019 [Member] | Extended Revolving Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit facility amount | $405 | |||
Term Loan B [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit facility amount | 1,775 | |||
Term Loan B [Member] | Extended Revolving Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Senior Secured Leverage Ratio | 1 | |||
Revolver Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Senior Secured Leverage Ratio | 1 | 3 | ||
Incremental revolving commitments | 53 | |||
Credit facility amount | 352 | |||
Revolver Credit Facility [Member] | February 2019 [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit facility amount | 370 | |||
Revolver Credit Facility [Member] | Repricing Amendments [Member] | ||||
Subsequent Event [Line Items] | ||||
Revolving commitment under agreement revised | 317 | |||
Subsequent Event [Member] | February 2019 [Member] | Extended Revolving Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit facility amount | 405 | |||
Subsequent Event [Member] | Term Loan B [Member] | Senior Secured Credit [Member] | ||||
Subsequent Event [Line Items] | ||||
Senior Secured Leverage Ratio | 3.25 | |||
Repricing Premium | 1.00% | |||
Subsequent Event [Member] | Term Loan B [Member] | Senior Secured Credit [Member] | Eurocurrency Borrowings [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt variable rate | 3.25% | |||
Floor rate | 1.00% | |||
Subsequent Event [Member] | Term Loan B [Member] | Senior Secured Credit [Member] | Base Rate | ||||
Subsequent Event [Line Items] | ||||
Debt variable rate | 2.25% | |||
Floor rate | 2.00% | |||
Subsequent Event [Member] | Term Loan B [Member] | Senior Secured Credit [Member] | Senior Secured Leverage Ratio Less Than or Equal To 3.25 to1 [Member] | Eurocurrency Borrowings [Member] | ||||
Subsequent Event [Line Items] | ||||
Applicable margin reduction | 3.00% | |||
Subsequent Event [Member] | Term Loan B [Member] | Senior Secured Credit [Member] | Senior Secured Leverage Ratio Less Than or Equal To 3.25 to1 [Member] | Base Rate | ||||
Subsequent Event [Line Items] | ||||
Applicable margin reduction | 2.00% | |||
Subsequent Event [Member] | Revolver Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Incremental revolving commitments | 53 | |||
Credit facility amount | 352 | |||
Subsequent Event [Member] | Revolver Credit Facility [Member] | Repricing Amendments [Member] | ||||
Subsequent Event [Line Items] | ||||
Revolving commitment under agreement revised | $317 |
Recovered_Sheet4
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts, Current [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $31.40 | $36.50 | $37.10 |
Charged to Expense or Other Accounts | 7.1 | 4.8 | 8.7 |
Write-offs and Other Adjustments | -12.6 | -9.9 | -9.3 |
Balance at End of Period | 25.9 | 31.4 | 36.5 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 282.1 | 227.4 | 236.4 |
Charged to Expense or Other Accounts | -32.6 | 65.1 | -6.5 |
Write-offs and Other Adjustments | 3.6 | -10.4 | -2.5 |
Balance at End of Period | 253.1 | 282.1 | 227.4 |
Allowance For Other Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 36.7 | 40.4 | 43.2 |
Charged to Expense or Other Accounts | -32.6 | -3.3 | -1.3 |
Write-offs and Other Adjustments | -0.2 | -0.4 | -1.5 |
Balance at End of Period | $3.90 | $36.70 | $40.40 |