Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity Registrant Name | Sabre Corp | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-36422 | ||
Entity Tax Identification Number | 20-8647322 | ||
Entity Address, Address Line One | 3150 Sabre Drive | ||
Entity Address, City or Town | Southlake | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 76092 | ||
City Area Code | 682 | ||
Local Phone Number | 605-1000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | SABR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,064,679,095 | ||
Entity Common Stock, Shares Outstanding | 273,750,471 | ||
Entity Central Index Key | 0001597033 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2020 annual meeting of stockholders to be held on April 29, 2020, are incorporated by reference in Part III of this Annual Report on Form 10-K. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 3,974,988 | $ 3,866,956 | $ 3,598,484 |
Cost of revenue | 3,035,003 | 2,791,414 | 2,513,857 |
Selling, general and administrative | 576,568 | 513,526 | 510,075 |
Impairment and related charges | 0 | 0 | 81,112 |
Operating income | 363,417 | 562,016 | 493,440 |
Other (expense) income: | |||
Interest expense, net | (156,391) | (157,017) | (153,925) |
Loss on extinguishment of debt | 0 | (633) | (1,012) |
Joint venture equity income | 2,044 | 2,556 | 2,580 |
Other, net | (9,432) | (8,509) | 36,530 |
Total other expense, net | (163,779) | (163,603) | (115,827) |
Income from continuing operations before income taxes | 199,638 | 398,413 | 377,613 |
Provision for income taxes | 35,326 | 57,492 | 128,037 |
Income from continuing operations | 164,312 | 340,921 | 249,576 |
(Loss) Income from discontinued operations, net of tax | (1,766) | 1,739 | (1,932) |
Net income | 162,546 | 342,660 | 247,644 |
Net income attributable to noncontrolling interests | 3,954 | 5,129 | 5,113 |
Net income attributable to common stockholders | $ 158,592 | $ 337,531 | $ 242,531 |
Basic net income per share attributable to common stockholders: | |||
Income from continuing operations (in dollars per share) | $ 0.58 | $ 1.22 | $ 0.88 |
(Loss) income from discontinued operations (in dollars per share) | (0.01) | 0.01 | (0.01) |
Net income per common share (in dollars per share) | 0.57 | 1.23 | 0.87 |
Diluted net income per share attributable to common stockholders: | |||
Income from continuing operations (in dollars per share) | 0.58 | 1.21 | 0.88 |
(Loss) income from discontinued operations (in dollars per share) | (0.01) | 0.01 | (0.01) |
Net income per common share (in dollars per share) | $ 0.57 | $ 1.22 | $ 0.87 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 274,168 | 275,235 | 276,893 |
Diluted (in shares) | 276,217 | 277,518 | 278,320 |
Dividend per common share (in dollars per share) | $ 0.56 | $ 0.56 | $ 0.56 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 162,546 | $ 342,660 | $ 247,644 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments (“CTA”) | (1,946) | (3,651) | 13,136 |
Retirement plan benefits | |||
Net actuarial loss, net of taxes of $2,379, $6,223 and $386 | (8,269) | (19,143) | (852) |
Amortization of prior service credits, net of taxes of $321, $321 and $517 | (1,111) | (1,112) | (915) |
Amortization of actuarial losses, net of taxes of $(1,400), $(1,624) and $(2,336) | 5,421 | 5,739 | 4,181 |
Net change in retirement-related benefit plans, net of tax | (3,959) | (14,516) | 2,414 |
Derivatives and available-for-sale securities: | |||
Unrealized (losses) gains, net of taxes of $4,497, $1,474 and $(5,989) | (15,217) | (6,842) | 16,068 |
Reclassification adjustment for realized gains, net of taxes of $(1,469), $(1,248) and $(1,005) | 5,507 | 3,677 | 2,082 |
Net change in derivatives and available for sale securities, net of tax | (9,710) | (3,165) | 18,150 |
Share of other comprehensive (loss) income of joint venture | (967) | (635) | 615 |
Other comprehensive (loss) income | (16,582) | (21,967) | 34,315 |
Comprehensive income | 145,964 | 320,693 | 281,959 |
Less: Comprehensive income attributable to noncontrolling interests | (3,954) | (5,129) | (5,113) |
Comprehensive income attributable to Sabre Corporation | $ 142,010 | $ 315,564 | $ 276,846 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net actuarial loss, taxes | $ 2,379 | $ 6,223 | $ 386 |
Amortization of prior service credits, taxes | 321 | 321 | 517 |
Amortization of actuarial losses, taxes | (1,400) | (1,624) | (2,336) |
Unrealized (losses) gains on derivatives, tax | (4,497) | (1,474) | |
Unrealized (losses) gains on derivatives, taxes | (5,989) | ||
Reclassification adjustment for realized (losses) gains, taxes | $ (1,469) | $ (1,248) | |
Reclassification adjustment for realized (losses) gains, taxes | $ (1,005) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 436,176 | $ 509,265 |
Accounts receivable, net | 546,533 | 508,122 |
Prepaid expenses and other current assets | 139,211 | 170,243 |
Total current assets | 1,121,920 | 1,187,630 |
Property and equipment, net | 641,722 | 790,372 |
Investments in joint ventures | 27,494 | 27,769 |
Goodwill | 2,633,251 | 2,552,369 |
Finite lived intangible assets, net | 573,653 | 613,248 |
Deferred income taxes | 21,812 | 24,322 |
Other assets, net | 670,105 | 610,671 |
Total assets | 5,689,957 | 5,806,381 |
Current liabilities | ||
Accounts payable | 187,187 | 165,227 |
Accrued compensation and related benefits | 94,368 | 112,866 |
Accrued subscriber incentives | 316,254 | 301,530 |
Deferred revenues | 84,661 | 80,902 |
Other accrued liabilities | 189,548 | 185,178 |
Current portion of debt | 81,614 | 68,435 |
Tax Receivable Agreement | 71,911 | 104,257 |
Total current liabilities | 1,025,543 | 1,018,395 |
Deferred income taxes | 107,402 | 135,753 |
Other noncurrent liabilities | 347,522 | 340,495 |
Long-term debt | 3,261,821 | 3,337,467 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity | ||
Common stock: $0.01 par value; 450,000 authorized shares; 294,319 and 291,664 shares issued, 273,733 and 275,352 shares outstanding at December 31, 2019 and 2018, respectively | 2,943 | 2,917 |
Additional paid-in capital | 2,317,544 | 2,243,419 |
Treasury stock, at cost, 20,587 and 16,312 shares at December 31, 2019 and 2018, respectively | (468,618) | (377,980) |
Retained deficit | (763,482) | (768,566) |
Accumulated other comprehensive loss | (149,306) | (132,724) |
Noncontrolling interest | 8,588 | 7,205 |
Total stockholders’ equity | 947,669 | 974,271 |
Total liabilities and stockholders’ equity | 5,689,957 | 5,806,381 |
Acquired customer relationships, net | ||
Current assets | ||
Finite lived intangible assets, net | 311,015 | 323,731 |
Other intangible assets | ||
Current assets | ||
Finite lived intangible assets, net | $ 262,638 | $ 289,517 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common Stock, Shares issued (in shares) | 294,319,000 | 291,664,000 |
Common Stock, Shares outstanding (in shares) | 273,733,000 | 275,352,000 |
Treasury Stock, Shares held (in shares) | 20,587,000 | 16,312,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income | $ 162,546 | $ 342,660 | $ 247,644 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 414,621 | 413,344 | 400,871 |
Amortization of upfront incentive consideration | 82,935 | 77,622 | 67,411 |
Stock-based compensation expense | 66,885 | 57,263 | 44,689 |
Deferred income taxes | (22,925) | 43,099 | 48,760 |
Allowance for doubtful accounts | 20,563 | 7,749 | 9,459 |
Amortization of debt issuance costs | 3,972 | 3,981 | 5,923 |
Joint venture equity income | (2,044) | (2,556) | (2,580) |
Loss (income) from discontinued operations | 1,766 | (1,739) | 1,932 |
Dividends received from joint venture investments | 1,352 | 1,411 | 1,088 |
Tax Receivable Agreement | 0 | 4,852 | (59,603) |
Debt modification costs | 0 | 1,558 | 14,758 |
Loss on extinguishment of debt | 0 | 633 | 1,012 |
Impairment and related charges | 0 | 0 | 81,112 |
Other | 2,777 | (2,349) | 13,284 |
Changes in operating assets and liabilities: | |||
Accounts and other receivables | (33,911) | (45,586) | (108,596) |
Prepaid expenses and other current assets | 1,145 | 14,362 | 109 |
Capitalized implementation costs | (28,588) | (39,168) | (60,766) |
Upfront incentive consideration | (71,447) | (88,735) | (94,296) |
Other assets | 38,795 | (29,607) | (21,111) |
Accounts payable and other accrued liabilities | (27,232) | (27,080) | 67,034 |
Accrued compensation and related benefits | (17,469) | (15,044) | 6,038 |
Deferred revenue including upfront solution fees | (12,481) | 8,127 | 13,861 |
Cash provided by operating activities | 581,260 | 724,797 | 678,033 |
Investing Activities | |||
Additions to property and equipment | (115,166) | (283,940) | (316,436) |
Acquisitions, net of cash acquired | (107,462) | 0 | 0 |
Other investing activities | (20,398) | 8,681 | (1,089) |
Cash used in investing activities | (243,026) | (275,259) | (317,525) |
Financing Activities | |||
Cash dividends paid to common stockholders | (153,508) | (154,080) | (154,861) |
Payments on borrowings from lenders | (106,560) | (47,310) | (1,880,506) |
Payments on Tax Receivable Agreement | (101,482) | (58,908) | (99,241) |
Repurchase of common stock | (77,636) | (26,281) | (109,100) |
Proceeds of borrowings from lenders | 45,000 | 0 | 1,897,625 |
Net (payments) receipts on the settlement of equity-based awards | (5,736) | 2,040 | 12,647 |
Debt issuance and modification costs | 0 | (1,567) | (19,052) |
Other financing activities | (9,799) | (20,400) | (4,292) |
Cash used in financing activities | (409,721) | (306,506) | (356,780) |
Cash Flows from Discontinued Operations | |||
Cash used in operating activities | (2,383) | (1,895) | (4,848) |
Cash used in discontinued operations | (2,383) | (1,895) | (4,848) |
Effect of exchange rate changes on cash and cash equivalents | 781 | 6,747 | (1,613) |
(Decrease) increase in cash and cash equivalents | (73,089) | 147,884 | (2,733) |
Cash and cash equivalents at beginning of period | 509,265 | 361,381 | 364,114 |
Cash and cash equivalents at end of period | 436,176 | 509,265 | 361,381 |
Cash payments for income taxes | 55,137 | 57,629 | 40,211 |
Cash payments for interest | 157,648 | 156,041 | 149,572 |
Capitalized interest | 5,085 | 8,823 | 11,142 |
Non-cash additions to property and equipment | $ 33,136 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Treasury Stock | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Stockholders' equity equity, beginning balance at Dec. 31, 2016 | $ 625,615 | $ 2,854 | $ 2,105,843 | $ (221,746) | $ (1,141,116) | $ (122,799) | $ 2,579 |
Stockholders' equity equity, beginning balance (in shares) at Dec. 31, 2016 | 285,461,125,000 | 8,511,323,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 281,959 | 242,531 | 34,315 | 5,113 | |||
Common stock dividends | (154,861) | (154,861) | |||||
Repurchase of common stock (in shares) | 5,779,769,000 | ||||||
Repurchase of common stock | (109,100) | $ (109,000) | $ (109,100) | ||||
Settlement of stock-based awards (in shares) | 3,676,776,000 | 504,634,000 | |||||
Settlement of stock-based awards | 12,692 | $ 37 | 23,655 | $ (11,000) | |||
Stock-based compensation expense | 44,689 | 44,689 | |||||
Dividends paid to non-controlling interest on subsidiary common stock | (2,494) | (2,494) | |||||
Stockholders' equity equity, ending balance at Dec. 31, 2017 | 698,500 | $ 2,891 | 2,174,187 | $ (341,846) | (1,053,446) | (88,484) | 5,198 |
Stockholders' equity equity, ending balance (in shares) at Dec. 31, 2017 | 289,137,901,000 | 14,795,726,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 320,693 | ||||||
Comprehensive income, adjusted for accounting standards update | 298,420 | 337,531 | (44,240) | 5,129 | |||
Common stock dividends | (154,080) | (154,080) | |||||
Repurchase of common stock (in shares) | 1,075,255,000 | ||||||
Repurchase of common stock | (26,281) | $ (26,000) | $ (26,281) | ||||
Settlement of stock-based awards (in shares) | 2,526,053,000 | 440,557,000 | |||||
Settlement of stock-based awards | 2,142 | $ 26 | 11,969 | $ (9,853) | |||
Stock-based compensation expense | 57,263 | 57,263 | |||||
Adoption of New Accounting Standard | 101,429 | 101,429 | |||||
Dividends paid to non-controlling interest on subsidiary common stock | (3,122) | (3,122) | |||||
Stockholders' equity equity, ending balance at Dec. 31, 2018 | $ 974,271 | $ 2,917 | 2,243,419 | $ (377,980) | (768,566) | (132,724) | 7,205 |
Stockholders' equity equity, ending balance (in shares) at Dec. 31, 2018 | 291,664,000 | 291,663,954,000 | 16,311,538,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | $ 145,964 | 158,592 | (16,582) | 3,954 | |||
Common stock dividends | (153,508) | (153,508) | |||||
Repurchase of common stock (in shares) | 3,673,768 | 3,673,768,000 | |||||
Repurchase of common stock | (77,636) | $ (78,000) | $ (77,636) | ||||
Settlement of stock-based awards (in shares) | 2,655,463,000 | 601,546,000 | |||||
Settlement of stock-based awards | (5,736) | $ 26 | 7,240 | $ (13,002) | |||
Stock-based compensation expense | 66,885 | 66,885 | |||||
Dividends paid to non-controlling interest on subsidiary common stock | (2,571) | (2,571) | |||||
Stockholders' equity equity, ending balance at Dec. 31, 2019 | $ 947,669 | $ 2,943 | $ 2,317,544 | $ (468,618) | $ (763,482) | $ (149,306) | $ 8,588 |
Stockholders' equity equity, ending balance (in shares) at Dec. 31, 2019 | 294,319,000 | 294,319,417,000 | 20,586,852,000 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe travel industry continues to be adversely affected by the global health crisis due to the outbreak of the coronavirus (COVID-19) in January 2020, especially as it relates to air travel to and from Asia. We expect a material impact to our consolidated financial results in the first quarter of 2020. Given the uncertainties surrounding the duration of the outbreak and its impact on global travel, we cannot reasonably estimate the related financial impact to our full-year 2020 financial results; however, we expect the impact will be material. |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | 1. Summary of Business and Significant Accounting Policies Description of Business 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. (“Sabre GLBL”) is the principal operating subsidiary and sole direct subsidiary of Sabre Holdings. Sabre GLBL 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. We connect people and places with technology that reimagines the business of travel. We operate through three business segments: (i) Travel Network, our global travel marketplace for travel suppliers and travel buyers, (ii) Airline Solutions, a broad portfolio of software technology products and solutions for airlines and other travel suppliers, and (iii) Hospitality Solutions, an extensive suite of leading software solutions for hoteliers. 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 majority-owned subsidiaries and companies over which we exercise control through majority voting rights. No entities are 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. The preparation of these annual 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, estimation of future cancellations of bookings processed through the Sabre global distribution system ("GDS"), revenue recognition for Software-as-a-Service ("SaaS") arrangements, 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, the evaluation of the recoverability of capitalized implementation costs, assumptions utilized to evaluate the recoverability of deferred customer advance and discounts, estimation of loss contingencies, and evaluation of uncertainties surrounding the calculation of our tax assets and liabilities. In the first quarter of 2018, we adopted the comprehensive update to revenue recognition guidance Revenue from Contracts with Customers ("ASC 606"), which replaced the previous standard ("ASC 605"), using the modified retrospective approach, applied to contracts that were not completed as of the adoption date. Our 2018 results are reported under ASC 606, while results prior to 2018 are reported under ASC 605. Under ASC 606, revenue is recognized when a company transfers the promised goods or services to customers in an amount that reflects the consideration that is expected to be received for those goods and services. See Note 2. Revenue from Contracts with Customers. Revenue Recognition Travel Network and Hospitality Solutions’ revenue recognition is primarily driven by GDS and central reservation system transactions, respectively. Airline Solutions’ revenue recognition is primarily driven by passengers boarded or other variable metrics relevant to the software service provided. Timing of revenue recognition is primarily based on the consistent provision of services in a stand-ready series SaaS environment and the amount of revenue recognized varies with the volume of transactions processed. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under ASC 606. The transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Most of our contracts in the Travel Network and Hospitality Solutions businesses have a single performance obligation. In the Airline Solutions business, many of our contracts may have multiple performance obligations, which generally include software and product solutions through SaaS and hosted delivery, and other service fees. In addition, at times we enter into agreements with customers to provide access to Travel Network’s GDS and, at or near the same time, enter into a separate agreement to provide Airline Solutions' software solutions through SaaS and hosted delivery, resulting in multiple performance obligations within a combined agreement. Our significant product and services and methods of recognition are as follows: Stand-ready series revenue recognition Travel Network —Travel Network's service offering is a GDS or GDS services linking and engaging transactions between travel agents (those that seek travel on behalf of travelers) and travel suppliers (such as airlines, hotels, car rental companies and cruise lines). Revenue is generated from contracts with the travel suppliers as each booking is made or transaction occurs and represents a stand-ready performance obligation where our systems perform the same service each day for the customer, based on the customer’s level of usage. Variability in the amounts billed to the customer and revenue recognized coincides with the customer’s level of usage or value received by the customer. Travel Network's revenue for air transactions is recognized at the time of booking of the reservation, net of estimated future cancellations. Travel Network's revenue for car rental, hotel transactions and other travel providers is recognized at the time the reservation is used by the customer. Airline Solutions and Hospitality Solutions —Airline Solutions and Hospitality Solutions provide technology solutions and other professional services to airlines, hotels and other business consumers in the travel industry. The technology solutions are primarily provided in a SaaS or hosted environment. Customers are normally charged an upfront solutions fee and a recurring usage-based fee for the use of the software, which represents a stand-ready performance obligation where our systems perform the same service each day for the customer, based on the customer’s level of usage. Upfront solutions fees are recognized primarily on a straight-line basis over the relevant contract term, upon cut-over of the primary SaaS solution. Variability in the usage-based fee that does not align with the value provided to the customer can result in a difference between billings to the customer and the timing of contract performance and revenue recognition, which may result in the recognition of a contract asset. This can result in a requirement to forecast expected usage-based fees and volumes over the contract term in order to determine the rate for revenue recognition. This variable consideration is constrained if there is an inability to reliably forecast this revenue. Contract Assets and Deferred Customer Advances and Discounts Deferred customer advances and discounts are amortized against revenue in future periods as the related revenue is earned. Our contract assets include revenue recognized for services already transferred to a customer, for which the fulfillment of another contractual performance obligation is required, before we have the unconditional right to bill and collect based on contract terms. Contract assets are reviewed for recoverability on a periodic basis based on a review of impairment indicators. Deferred customer advances and discounts are reviewed for recoverability based on future contracted revenues and estimated direct costs of the contract when a significant event occurs that could impact the recoverability of the assets, such as a significant contract modification or early renewal of contract terms. For the year ended December 31, 2019, we did not impair any of these assets as a result of the related contract becoming uncollectable, modified or canceled. See Note 4. Impairment and Related Charges regarding 2017 impairments. 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. Other revenue recognition patterns Airline Solutions also provides other services including development labor or professional consulting. These services can be sold separately or with other products and services, and Airline Solutions may bundle multiple technology solutions in one arrangement with these other services. Revenue from other services consisting of development services that represent minor configuration or professional consulting is generally recognized over the period the services are performed or upon completed delivery. Airline Solutions also directly licenses certain software to its customers where the customer obtains control of the license. Revenue from software license fees is recognized when the customer gains control of the software enabling them to directly use the software and obtain substantially all of the remaining benefits. Fees for ongoing software maintenance are recognized ratably over the life of the contract. Under these arrangements, often we are entitled to minimum fees which are collected over the term of the agreement, while the revenue from the license is recognized at the point when the customer gains control, which results in current and long-term unbilled receivables for these arrangements. Variability in the amounts billed to the customer and revenue recognized coincides with the customer’s level of usage with the exception of upfront solution fees, non-usage based variable consideration, license and maintenance agreements and other services including development labor and professional consulting. 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 across our businesses which can impact timing of revenue recognition. For contracts with multiple performance obligations, we account for separate performance obligations on an individual basis with value assigned to each performance obligation based on our best estimate of relative standalone selling price ("SSP"). Judgment is required to determine the SSP for each distinct performance obligation. SSP is assessed annually using a historical analysis of contracts with customers executed in the most recently completed calendar year to determine the range of selling prices applicable to a distinct good or service. In making these judgments, we analyze various factors, including discounting practices, price lists, contract prices, value differentiators, customer segmentation and overall market and economic conditions. Based on these results, the estimated SSP is set for each distinct product or service delivered to customers. As our market strategies evolve, we may modify pricing practices in the future which could result in changes to SSP. Revenue recognition from our Airline Solutions business requires significant judgments such as identifying distinct performance obligations including material rights within an agreement, estimating the total contract consideration and allocating amounts to each distinct performance obligation, determining whether variable pricing within a contract meets the allocation objective, and forecasting future volumes. For a small subset of our contracts, we are required to forecast volumes as a result of pricing variability within the contract in order to calculate the rate for revenue recognition. Any changes in these judgments and estimates could have an impact on the revenue recognized in future periods. We evaluate whether it is appropriate to record the gross amount of our revenues and related costs by considering whether the entity is a principal (gross presentation) or an agent (net presentation) by evaluating the nature of our promise to the customer. We report revenue net of any revenue based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue producing transactions. 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 Advertising Costs Advertising costs are expensed as incurred. Advertising costs incurred by our continuing operations totaled $19 million, $19 million and $18 million for the years ended December 31, 2019, 2018 and 2017, respectively. Cash and Cash Equivalents and Restricted Cash 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. Allowance for Doubtful Accounts and Concentration of Credit Risk 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, such as bankruptcy filings or 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 historical experience and the length of time the receivables are past due. We maintained an allowance for doubtful accounts of approximately $58 million and $45 million at December 31, 2019 and 2018, respectively. See “—Recent Accounting Pronouncements" below for information on recently issued accounting guidance regarding the allowance for doubtful accounts. 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. Our other accounts receivable are generally due from other participants in the travel and transportation industry. As of December 31, 2019 and 2018, approximately $375 million, or 82%, and $334 million, or 81%, respectively, of our trade accounts receivable were attributable to services provided to the commercial air travel industry and travel agency customers. Substantially all of our accounts receivable 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. We believe the credit risk related to the air carriers’ difficulties is significantly mitigated by the fact that we collect a significant portion of the receivables from these carriers through the Airline Clearing House and other similar clearing houses (“ACH”). As of December 31, 2019, approximately 59% of our air customers make payments through the ACH which accounts for approximately 89% 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. We monitor these carriers and account for the related credit risk through our normal reserve policies. Derivative Financial Instruments We recognize all 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”). 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. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization, 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 5 years We capitalize certain costs related to our infrastructure, software applications and reservation systems under authoritative guidance on software developed for internal use. 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 our GDS and SaaS-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. See Note 6. Balance Sheet Components, for amounts capitalized as property and equipment in our consolidated balance sheets. Depreciation and amortization of property and equipment totaled $295 million, $288 million and $256 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization of software developed for internal use, included in depreciation and amortization, totaled $241 million, $236 million and $203 million for the years ended December 31, 2019, 2018 and 2017, respectively. During the years ended December 31, 2019, 2018 and 2017, we capitalized $89 million, $252 million, and $251 million, respectively, related to software developed for internal use. We also evaluate the useful lives of these assets on an annual basis and test 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. We did not record any property and equipment impairment charges for the years ended December 31, 2019, 2018 and 2017. Leases We lease certain facilities under long term operating leases. We determine if an arrangement is a lease at inception. Operating lease assets are included in operating lease right-of-use (“ROU”) assets within other noncurrent assets and operating lease liabilities are included in other current liabilities and other noncurrent liabilities in our consolidated balance sheets. Finance lease assets are included in property and equipment with associated liabilities included in current portion of debt and long-term debt in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our internal borrowing rate for leases with a lease term of less than or equal to five years. For leases with a lease term greater than five years, we use our incremental borrowing rate based on the estimated rate of interest for corporate bond borrowings over a similar term of the lease payments. Certain of our lease agreements contain renewal options, early termination options and/or payment escalations based on fixed annual increases, local consumer price index changes or market rental reviews. We recognize rent expense with fixed rate increases and/or fixed rent reductions on a straight line basis over the term of the lease. Business Combinations Business combinations are accounted for under the acquisition method of accounting. Under this method, the assets acquired and liabilities assumed are recognized at their respective fair values as of the date of acquisition. The excess, if any, of the acquisition price over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. For significant acquisitions, we utilize third-party appraisal firms to assist us in determining the fair values for certain assets acquired and liabilities assumed. The measurement of these fair values requires us to make significant estimates and assumptions which are inherently uncertain. Adjustments to the fair values of assets acquired and liabilities assumed are made until we obtain all relevant information regarding the facts and circumstances that existed as of the acquisition date (the “measurement period”), not to exceed one year from the date of the acquisition. We recognize measurement-period adjustments in the period in which we determine the amounts, including the effect on earnings of any amounts we would have recorded in previous periods if the accounting had been completed at the acquisition date. Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired in business combinations. Goodwill is not amortized but is reviewed for impairment on an annual basis or more frequently if events and circumstances indicate the carrying amount may not be recoverable. Definite-lived intangible assets are amortized on a straight-line basis and assigned useful economic lives of two We perform our annual assessment of possible impairment of goodwill as of October 1 of each year. 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 quantitative assessment described below. If it is determined through the evaluation of events or circumstances that the carrying value may not be recoverable, 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 fair value through an adjustment to the goodwill balance, resulting in an impairment charge. We have three reporting units associated with our continuing operations: Travel Network, Airline Solutions and Hospitality Solutions. We did not record any goodwill impairment charges for the years ended December 31, 2019 , 2018 and 2017. See Note 5. Goodwill and Intangible Assets, for additional information. 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, the intangible assets are measured at fair value and an impairment charge is recorded based on the excess of the carrying value of the assets to its fair value. We did not record material intangible asset impairment charges for the years ended December 31, 2019, 2018 and 2017. See Note 5. Goodwill and Intangible Assets, for additional information. Equity Method Investments We utilize the equity method to account for our interests in joint ventures that we do not control but over which we exert significant influence. We periodically evaluate equity and debt investments in entities accounted for 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. We own voting interests in various national marketing companies ranging from 20% to 49%, a voting interest of 40% in ESS Elektroniczne Systemy Spzedazy Sp. zo.o, and a voting interest of 20% in Asiana Sabre, Inc. The carrying value of these equity method investments in joint ventures amounts to $24 million as of December 31, 2019 and 2018. Contract Acquisition Costs and Capitalized Implementation Costs We incur contract acquisition costs related to new contracts with our customers in the form of sales commissions based on estimated contract value for our Airline Solutions and Hospitality Solutions businesses. These costs are capitalized and reviewed for impairment on an annual basis. We generally amortize these costs, and those for renewals, over the average contract term for those businesses, excluding commissions on contracts with a term of one year or less, which are generally expensed in the period earned and recorded within selling, general and administrative expenses. We incur upfront costs to implement new customer contracts under our SaaS 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 implementation costs are amortized on a straight-line basis over the related contract term, ranging from three 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 enacted 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. We use significant judgment in determining whether a tax position's technical merits are more likely than not to be sustained and in measuring the amount of tax benefit that qualifies for recognition. For matters that are determined will more likely than not be sustained, we measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We recognize penalties and interest accrued related to income taxes as a component of the provision for income taxes. As the matters challenged by the taxing authorities are typically complex and open to subjective interpretation, their ultimate outcome may differ from the amounts recognized. The Tax Cuts and Jobs Act (the “TCJA”), which was enacted on December 22, 2017, imposes a tax on global low-taxed intangible income (“GILTI”) in tax years beginning after December 31, 2017. GILTI provisions are applicable to certain profits of a controlled foreign corporation that exceed the U.S. stockholder's deemed “routine” investment return under the TCJA and results in income includable in the return of U.S. shareholders. We recognize liabilities, if any, related to this provision of the TCJA in the year in which the liability arises and not as a deferred tax liability. Pension and Other Postretirement Benefits We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans in our consolidated balance sheets. The funded status is the difference between the fair value of plan assets and the benefit obligation as of the balance sheet date. The fair value of plan assets represents the cumulative contributions made to fund the pension and other postretirement benefit plans which are invested primarily in domestic and foreign equities and fixed income securities. The benefit obligation of our pension and other postretirement benefit plans are actuarially determined using certain assumptions approved by us. The benefit obligation is adjusted annually in the fourth quarter to reflect actuarial changes and may also be adjusted upon the adoption of plan amendments. These adjustments are initially recorded in accumulated other comprehensive income (loss) and are subsequently amortized over the life expectancy of the plan participants as a component of net periodic benefit costs. 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 recognize equity-based compensation expense net of any actual forfeitures. We measure the grant date fair value of stock option awards as calculated by the Black-Scholes option-pricing model which requires certain subjective assumptions, including the expected term of the option, the expected volatility of our common stock, risk-free interest rates and expected dividend yield. The expected term is estimated by using the “simplified method” which is based on the midpoint between the vesting date and the expiration of the contractual term. We utilized the simplified method due to the lack of sufficient historical experience under our current grant terms. The expected volatility is based on the historical volatility of our stock price. The expected risk-free interest rates are based on the yields of U.S. Treasury securities with maturities appropriate for the expected term of the stock options. The expected dividend yield was based on the calculated yield on our common stock at the time of grant assuming annual dividends totaling $0.56 per share for awards granted in 2019. Foreign Currency We remeasure foreign currency transactions into the relevant functional currency and record the foreign currency transaction gains or losses as a component of other, net in our consolidated statements of operations. We translate the financial statements of our non-U.S. dollar functional currency foreign subsidiaries into U.S. dollars in consolidation and record the translation gains or losses as a component of other comprehensive income (lo |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers In the first quarter of 2018, we adopted the comprehensive update to revenue recognition guidance Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), which replaced the previous standard ("ASC 605"), using the modified retrospective approach, applied to contracts that were not completed as of the adoption date. Under ASC 606, revenue is recognized when a company transfers the promised goods or services to customers in an amount that reflects the consideration that is expected to be received for those goods and services. The key areas of impact on our consolidated financial statements include: • Revenue recognition for our Travel Network and Hospitality Solutions businesses did not change significantly. The definition of a performance obligation for Travel Network under the new guidance impacts the calculation for our booking fee cancellation reserve, which resulted in a beginning balance sheet adjustment. • Our Airline Solutions business is primarily impacted by ASC 606 due to the following: – Under ASC 605, we recognized revenue related to license fee and maintenance agreements ratably over the life of the contract. Under ASC 606, revenue for license fees is recognized upon delivery of the license and ongoing maintenance services are to be recognized ratably over the life of the contract. For existing open agreements, this change resulted in a beginning balance sheet adjustment and reduced revenue in subsequent years from these agreements. – Allocation of contract revenues among various products and solutions, and the timing of the recognition of those revenues, are impacted by agreements with tiered pricing or variable rate structures that do not correspond with the goods or services delivered to the customer. For existing open agreements, this change resulted in a beginning balance sheet adjustment and reduced revenue in subsequent years from these agreements. • Capitalization of incremental contract acquisition costs (such as sales commissions), and recognition of these costs over the customer benefit period resulted in the recognition of an asset on our balance sheet and impacted our Airline Solutions and Hospitality Solutions businesses. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with ASC 605. The impacts described above resulted in a net reduction to our opening retained deficit as of January 1, 2018 of approximately $102 million (net of tax, $78 million) with a corresponding increase primarily in current and long-term unbilled receivables, contract assets, other assets and other accrued liabilities. Contract Balances Revenue recognition for a significant portion of our revenue coincides with normal billing terms, including Travel Network's transactional revenues, and Airline Solutions' and Hospitality Solutions' SaaS and hosted revenues. Timing differences among revenue recognition, unconditional rights to bill, and receipt of contract consideration may result in contract assets or contract liabilities. The following table presents our assets and liabilities with customers as of December 31, 2019 and December 31, 2018 (in thousands): Account Consolidated Balance Sheet Location December 31, 2019 December 31, 2018 Contract assets and customer advances and discounts (1) Prepaid expenses and other current assets / other assets, net $ 105,499 $ 79,268 Trade and unbilled receivables, net Accounts receivable, net 539,806 501,467 Long-term trade unbilled receivables, net Other assets, net 38,250 50,467 Contract liabilities Deferred revenues / other noncurrent liabilities 167,832 165,858 _______________________________ (1) Includes contract assets of $6 million and $4 million for December 31, 2019 and December 31, 2018, respectively. During the year ended December 31, 2019, we recognized revenue of approximately $61 million from contract liabilities that existed as of January 1, 2019. Our long-term trade unbilled receivables, net relate to license fees billed ratably over the contractual period and recognized when the customer gains control of the software. We evaluate collectability of our accounts receivable based on a combination of factors and record reserves as reflected in Note 1. Summary of Business and Significant Accounting Policies. Revenue The following table presents our revenues disaggregated by business (in thousands): Year Ended December 31, 2019 December 31, 2018 Air $ 2,338,602 $ 2,284,419 Lodging, Ground and Sea 370,652 350,152 Other 173,408 171,623 Total Travel Network 2,882,662 2,806,194 SabreSonic Passenger Reservation System 506,579 501,085 Commercial and Operations Solutions (1) 328,485 312,751 Other 5,274 8,911 Total Airline Solutions 840,338 822,747 SynXis Software and Services 257,612 240,583 Other 35,268 32,496 Total Hospitality Solutions 292,880 273,079 Eliminations (40,892) (35,064) Total Sabre Revenue $ 3,974,988 $ 3,866,956 _______________________________ (1) Includes license fee revenue recognized upon delivery to the customer of $34 million and $27 million for the years ended December 31, 2019 and December 31, 2018, respectively. We may occasionally recognize revenue in the current period for performance obligations partially or fully satisfied in the previous periods resulting from changes in estimates for the transaction price, including any changes to our assessment of whether an estimate of variable consideration is constrained. For the year ended December 31, 2019, the impact on revenue recognized in the current period, from performance obligations partially or fully satisfied in the previous period, is immaterial. We recognize revenue under long-term contracts that primarily includes variable consideration based on transactions processed. A majority of our consolidated revenue is recognized as a stand-ready performance obligation with the amount recognized based on the invoiced amounts for services performed, known as right to invoice revenue recognition. Certain of our contracts, primarily in the Airlines Solutions business, contain minimum transaction volumes, which in many instances are not considered substantive as the customer is expected to exceed the minimum in the contract. Unearned performance obligations primarily consist of deferred revenue for fixed implementation fees and future product implementations, which are included in deferred revenue and other noncurrent liabilities in our consolidated balance sheet. We have not disclosed the performance obligation related to contracts containing minimum transaction volume, as it represents a subset of our business, and therefore would not be meaningful in understanding the total future revenues expected to be earned from our long-term contracts. See Note 1. Summary of Business and Significant Accounting Policies regarding revenue recognition of our various revenue streams for more information. Contract Acquisition Costs and Capitalized Implementation Costs We incur contract costs in the form of acquisition costs and implementation costs. Contract acquisition costs are related to new contracts with our customers in the form of sales commissions based on the estimated contract value. We incur contract implementation costs to implement new customer contracts under our SaaS revenue model . We periodically assess contract costs for recoverability, and our assessment resulted in impairments of approximately $2 million and $4 million for the year ended December 31, 2019 and 2018, respectively. See Note 1. Summary of Business and Significant Accounting Policies for an overview of our policy for capitalization of acquisition and implementation costs. Year Ended December 31, 2019 December 31, 2018 Contract acquisition costs: Beginning balance $ 21,298 $ 19,353 Additions 9,378 7,924 Amortization (7,081) (6,404) Other — 425 Ending balance $ 23,595 $ 21,298 Capitalized implementation costs: Beginning balance $ 189,448 $ 194,501 Additions 28,588 39,168 Amortization (39,444) (37,904) Impairment (2,405) (4,013) Other (219) (2,304) Ending balance $ 175,968 $ 189,448 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions Farelogix We announced on November 14, 2018 that we have entered into an agreement to acquire Farelogix, Inc. ("Farelogix"), a travel industry innovator in the airline information technology and distribution landscape. At closing, Sabre will purchase Farelogix for $360 million, funded by cash on hand and Revolver borrowing. We have agreed to advance certain attorneys' fees incurred by Farelogix in responding to certain governmental reviews of the acquisition and in defending against certain antitrust proceedings, which have totaled $20 million for the year ended December 31, 2019. These advances will be applied against the purchase price upon closing. On August 20, 2019, the U.S. Department of Justice ("DOJ") filed a complaint seeking a permanent injunction to prevent the acquisition. The trial concluded on February 6, 2020 and the trial court has not yet issued its decision. In addition, the U.K. Competitions and Market Authority ("CMA") has referred its review of the acquisition for a Phase 2 investigation and has published its provisional findings of competition concerns. There can be no assurance that the acquisition will occur on these terms or at all. Radixx In October 2019, we completed the acquisition of Radixx, a provider of retailing and customer service solutions to airlines in the low-cost carrier ("LCC") market, for $107 million, net of cash acquired and funded by cash on hand. Radixx is being integrated and is managed as a part of our Airline Solutions segment. Purchase Price Allocation The purchase price allocation presented below is preliminary and based on information available as of the filing date of this Annual Report on Form 10-K. Primarily, we consider the accounting related to intangible assets and the associated deferred taxes to be incomplete due to ongoing analysis. We expect to finalize the purchase price allocation in the first quarter of 2020. A summary of the acquisition price and estimated fair values of assets acquired and liabilities assumed as of the date of acquisition is as follows (in thousands): Cash and cash equivalents $ 3,348 Accounts receivable 2,587 Other current assets 244 Goodwill 82,402 Intangible assets: Customer relationships 13,600 Developed technology 10,800 Trade name 1,400 Property and equipment, net 2,142 Deferred tax assets 2,968 Other long term assets, net 2,641 Current liabilities (7,071) Deferred tax liabilities (1,583) Other noncurrent liabilities (2,668) Total acquisition price $ 110,810 Under the purchase accounting method, the total purchase price was allocated to the net assets of Radixx based upon estimated fair values as of the acquisition date. The excess purchase price over the estimated fair value of the net tangible and intangible assets was recorded as goodwill, reflecting the growth potential of the business. The anticipated useful lives of the intangible assets acquired are 10 years for customer relationships, 5 years for developed technology and 18 years for the trade name. The acquisition of Radixx did not have a material impact to our consolidated financial statements, and therefore pro forma information is not presented. |
Impairment and Related Charges
Impairment and Related Charges | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment and Related Charges | 4. Impairment and Related Charges Capitalized implementation costs and deferred customer advances and discounts are reviewed for impairment if events and circumstances indicate that their carrying amounts may not be recoverable. See Note 1. Summary of Business and Significant Accounting Policies for more information. Given the substantial amount of uncertainty of reaching an agreement regarding the implementation of services pursuant to the contract with an Airline Solutions' customer, we evaluated the recoverability of net capitalized contract costs related to the customer and recorded a charge of $81 million during the year ended December 31, 2017. This charge was estimated based on a review of all balances with the customer including capitalized implementation costs, deferred customer advances and discounts, deferred revenue, contract liabilities, and other deferred charges. We will continue to monitor our position through the insolvency proceedings; however, there is no further exposure to our consolidated balance sheet as of December 31, 2019. Given the uncertainty associated with the ultimate resolution of this dispute, there could be further impacts to our consolidated statement of operations. This impairment charge was primarily non-cash and was recorded to Impairment and related charges in our consolidated statement of operations for the year ended December 31, 2017. See Note 16. Commitments and Contingencies—Other for additional information. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Changes in the carrying amount of goodwill during the years ended December 31, 2019 and 2018 are as follows (in thousands): Travel Network Airline Solutions Hospitality Solutions Total Goodwill Balance as of December 31, 2017 $ 2,104,822 $ 290,985 $ 159,180 $ 2,554,987 Adjustments (1) (33) 378 (2,963) (2,618) Balance as of December 31, 2018 2,104,789 291,363 156,217 2,552,369 Acquired — 82,402 — 82,402 Adjustments (1) (7) (107) (1,406) (1,520) Balance as of December 31, 2019 $ 2,104,782 $ 373,658 $ 154,811 $ 2,633,251 ________________________ (1) Includes net foreign currency effects during the year. The following table presents our intangible assets as of December 31, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired customer relationships $ 1,046,382 $ (735,367) $ 311,015 $ 1,033,555 $ (709,824) $ 323,731 Trademarks and brand names 333,638 (147,735) 185,903 332,239 (137,009) 195,230 Reacquired rights 113,500 (73,124) 40,376 113,500 (56,910) 56,590 Purchased technology 437,288 (409,204) 28,084 426,488 (400,750) 25,738 Acquired contracts, supplier and distributor agreements 37,599 (29,324) 8,275 37,600 (25,867) 11,733 Non-compete agreements 14,686 (14,686) — 14,686 (14,460) 226 Total intangible assets $ 1,983,093 $ (1,409,440) $ 573,653 $ 1,958,068 $ (1,344,820) $ 613,248 Amortization expense relating to intangible assets subject to amortization totaled $65 million, $68 million and $96 million for the years ended December 31, 2019, 2018 and 2017, respectively. Estimated amortization expense related to intangible assets subject to amortization for each of the five succeeding years and beyond is as follows (in thousands): 2020 $ 65,915 2021 64,337 2022 50,736 2023 37,030 2024 58,395 2025 and thereafter 297,240 Total $ 573,653 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | 6. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2019 2018 Prepaid Expenses $ 77,326 $ 80,049 Value added tax receivable 39,381 57,486 Other 22,504 32,708 Prepaid expenses and other current assets $ 139,211 $ 170,243 Property and Equipment, Net Property and equipment, net consists of the following (in thousands): December 31, 2019 2018 Buildings and leasehold improvements $ 163,881 $ 156,357 Furniture, fixtures and equipment 38,878 38,049 Computer equipment 397,454 349,454 Software developed for internal use 1,857,353 1,771,306 Property and equipment 2,457,566 2,315,166 Accumulated depreciation and amortization (1,815,844) (1,524,794) Property and equipment, net $ 641,722 $ 790,372 Other Assets, Net Other assets, net consist of the following (in thousands): December 31, 2019 2018 Capitalized implementation costs, net $ 175,966 $ 189,447 Deferred upfront incentive consideration 151,606 162,893 Long-term contract assets and customer advances and discounts (1) 105,461 60,075 Right-of-Use asset (2) 64,191 — Long-term trade unbilled receivables (1) 38,250 50,467 Other 134,631 147,789 Other assets, net $ 670,105 $ 610,671 ________________________________ (1) Refer to Note 2. Revenue from Contracts with Customers for additional information. (2) In the first quarter of 2019, we adopted new lease accounting guidance on a modified retrospective basis in accordance with ASC 842, Leases. See Note 11. Leases, for additional information. Other Noncurrent Liabilities Other noncurrent liabilities consist of the following (in thousands): December 31, 2019 2018 Pension and other postretirement benefits $ 127,837 $ 118,919 Deferred revenue 74,646 75,685 Lease liabilities (1) 49,970 — Tax receivable agreement — 72,939 Other 95,069 72,952 Other noncurrent liabilities $ 347,522 $ 340,495 ___________________________ (1) In the first quarter of 2019, we adopted new lease accounting guidance on a modified retrospective basis in accordance with ASC 842, Leases. See Note 11. Leases, for additional information. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the following (in thousands): December 31, 2019 2018 Defined benefit pension and other postretirement benefit plans $ (143,389) $ (139,430) Unrealized foreign currency translation gain 4,289 7,201 Unrealized loss on foreign currency forward contracts, interest rate swaps and available-for-sale securities (10,206) (495) Total accumulated other comprehensive loss, net of tax $ (149,306) $ (132,724) The amortization of actuarial losses and periodic service credits associated with our retirement-related benefit plans is included in Other, net. See Note 9. Derivatives, for information on the income statement line items affected as the result of reclassification adjustments associated with derivatives. In 2018, we adopted an updated accounting standard and elected to reclassify the stranded income tax effects related to the enactment of the TCJA to retained earnings resulting in a decrease in our retained deficit of $22 million with a corresponding increase to accumulated other comprehensive income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes On December 22, 2017, the TCJA was signed into law. The TCJA contains significant changes to the U.S. corporate income tax system, including a reduction of the federal corporate income tax rate from 35% to 21%, a limitation of the tax deduction for interest expense to 30% of adjusted taxable income (as defined in the TCJA), base erosion and anti-avoidance tax (“BEAT”), foreign-derived intangible income (“FDII”) and global intangible low-taxed income (“GILTI”), one-time taxation of offshore earnings at reduced rates in connection with the transition of U.S. international taxation from a worldwide tax system to a territorial tax system (“transition tax”), and elimination of U.S. tax on dividends from foreign subsidiaries (subject to certain important exceptions). At December 31, 2017, we recorded a provisional net discrete tax cost associated with the TCJA of $47 million. The provisional amounts recorded in 2017 related primarily to the transition tax and were partially offset by the remeasurement of deferred taxes. Upon further analysis of certain aspects of the TCJA and subsequently published administrative guidance, and refinement of our calculations, during the year ended December 31, 2018, we reduced the provisional amount by $27 million. The Tax Receivable Agreement ("TRA") provides for future payments to Pre-IPO Existing Stockholders (as defined below) for cash savings for U.S. federal income tax realized as a result of the utilization of Pre-IPO Tax Assets (as defined below). These cash savings would be realized at the enacted statutory tax rate effective in the year of utilization. Primarily as a result of the reduction in the U.S. corporate income tax rate, we recorded a $58 million provisional reduction to the liability at December 31, 2017. In 2018, we finalized the 2017 U.S. federal income tax return and utilized additional Pre-IPO Tax Assets in the return, primarily as a result of electing to utilize our NOLs against our one-time transition tax income. As a result of the change in estimated NOL utilization at the higher corporate income tax rate in 2017 we recorded an increase to our liability of $5 million related to the TRA, which is reflected in our 2018 income from continuing operations before taxes. During 2019, we decreased the TRA liability by $3 million as a result of certain audit and transfer pricing adjustments recorded during the period, which is reflected in our 2019 income from continuing operations before taxes. The components of pretax income from continuing operations, generally based on the jurisdiction of the legal entity, were as follows: Year Ended December 31, 2019 2018 2017 Components of pre-tax income: Domestic $ 30,960 $ 190,291 $ 199,685 Foreign 168,678 208,122 177,928 $ 199,638 $ 398,413 $ 377,613 The provision for income taxes relating to continuing operations consists of the following: Year Ended December 31, 2019 2018 2017 Current portion: Federal $ 4,488 $ (49,518) $ 50,829 State and Local 3,781 4,168 2,388 Non U.S. 49,982 59,743 26,060 Total current 58,251 14,393 79,277 Deferred portion: Federal (14,215) 55,502 47,372 State and Local (1,692) (4,812) (6,178) Non U.S. (7,018) (7,591) 7,566 Total deferred (22,925) 43,099 48,760 Total provision for income taxes $ 35,326 $ 57,492 $ 128,037 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, 2019 2018 2017 Income tax provision at statutory federal income tax rate $ 41,924 $ 83,667 $ 132,165 State income taxes, net of federal benefit 2,223 (42) (1,727) Impact of non U.S. taxing jurisdictions, net 14,078 5,591 (13,492) Impact of U.S. TCJA (1) — (26,730) 46,563 Employee stock based compensation 8,380 3,884 (2,849) Research tax credit (28,593) (9,818) (8,777) Tax receivable agreement (TRA) (2) (536) 1,019 (20,861) Other, net (2,150) (79) (2,985) Total provision for income taxes $ 35,326 $ 57,492 $ 128,037 ___________________________ (1) In 2018, amount includes SAB 118 adjustments for deferred taxes and foreign tax effects. In 2017, amount includes $48 million of transition tax expense, and the remainder is the net benefit on cumulative deferred taxes. (2) Amount includes adjustments to the TRA, which are not taxable. The components of our deferred tax assets and liabilities are as follows: As of December 31, 2019 2018 Deferred tax assets: Accrued expenses $ 7,547 $ 8,638 Employee benefits other than pension 23,272 34,147 Lease liabilities 9,415 — Deferred revenue 30,715 22,351 Pension obligations 27,407 26,821 Tax loss carryforwards 54,556 70,340 Incentive consideration 6,722 9,456 Tax credit carryforwards 16,136 31,467 Suspended loss 14,635 14,474 Other 5,916 8,008 Total deferred tax assets 196,321 225,702 Deferred tax liabilities: Right of use assets (9,261) — Depreciation and amortization (7,059) (13,298) Software developed for internal use (66,918) (103,631) Intangible assets (120,528) (122,921) Unrealized gains and losses (18,778) (21,840) Non U.S. operations (13,789) (9,355) Investment in partnership (7,306) (6,794) Total deferred tax liabilities (243,639) (277,839) Valuation allowance (38,272) (59,294) Net deferred tax (liability) $ (85,590) $ (111,431) In the first quarter of 2018, we adopted ASC 606, which replaced ASC 605, using the modified retrospective approach. As a result of the adoption of ASC 606, we recorded a cumulative effect adjustment as of January 1, 2018 to decrease our opening retained deficit as of January 1, 2018 by approximately $102 million with a corresponding increase to deferred tax liabilities of $24 million to recognize the increase to income taxes payable in the future related to revenue recognition. As a result of the enactment of the TCJA, we recorded a one-time transition tax on the undistributed earnings of our foreign subsidiaries. We do not consider undistributed foreign earnings to be indefinitely reinvested as of December 31, 2019, with certain limited exceptions and have recorded corresponding deferred taxes. We consider the undistributed capital investments in our foreign subsidiaries to be indefinitely reinvested as of December 31, 2019, and have not provided deferred taxes on any outside basis differences. Determination of the amount of unrecognized deferred tax liability, if any, related to indefinitely reinvested capital investments is not practicable. As of December 31, 2019, we have U.S. federal net operating loss carryforwards ("NOLs") of approximately $32 million, primarily related to the acquisition of Radixx, which will expire between 2022 and 2039. As a result of the acquisition of Radixx and other prior business combinations, all of the U.S. federal NOLs are subject to the annual limit on the ability of a corporation to use certain tax attributes (as defined in Section 382 of the Code). However, we expect that Section 382 will not limit our ability to fully realize the tax benefits. We have state NOLs of $7 million which will expire between 2020 and 2038 and state research tax credit carryforwards of $18 million which will expire between 2023 and 2039. We have $165 million of 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 realizability 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 NOLs to prior periods, the reversal of deferred tax liabilities, tax planning strategies and projected future taxable income. We maintained a state NOL valuation allowance of $5 million and $4 million as of December 31, 2019 and 2018, respectively. For non-U.S. deferred tax assets of lastminute.com and other subsidiaries, we maintained a valuation allowance of $33 million and $55 million as of December 31, 2019 and 2018, respectively. We reassess these assumptions regularly which could cause an increase or decrease to the valuation allowance. This assessment could result in an increase or decrease in the effective tax rate which 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 for income taxes from continuing operations. During the years ended December 31, 2019, 2018 and 2017, we recognized a benefit of $7 million, expense of $1 million and expense of $1 million, respectively. As of December 31, 2019 and 2018, we had a liability, including interest and penalty, of $81 million and $93 million, respectively, for unrecognized tax benefits, including cumulative accrued interest and penalties of approximately $16 million and $23 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, 2019 2018 2017 Balance at beginning of year $ 70,327 $ 74,388 $ 49,331 Additions for tax positions taken in the current year 5,149 4,450 5,279 Additions for tax positions of prior years 12,679 2,612 21,669 Additions for tax positions from acquisitions 1,294 — — Reductions for tax positions of prior years (19,611) (5,831) — Reductions for tax positions of expired statute of limitations (1,192) (3,143) (1,891) Settlements (4,001) (2,149) — Balance at end of year $ 64,645 $ 70,327 $ 74,388 We present unrecognized tax benefits as a reduction to deferred tax assets for NOLs, similar tax loss or a tax credit carryforward that is available to settle additional income taxes that would result from the disallowance of a tax position, presuming disallowance at the reporting date. The amount of unrecognized tax benefits that were offset against deferred tax assets was $48 million, $55 million and $53 million as of December 31, 2019 , 2018, and 2017 respectively. As of December 31, 2019, 2018, and 2017, the amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $48 million, $51 million and $70 million, respectively. We believe that it is reasonably possible that $15 million in unrecognized tax benefits may be resolved in the next twelve months. In the normal course of business, we are subject to examination by taxing authorities throughout the world. The following table summarizes, by major tax jurisdiction, our tax years that remain subject to examination by taxing authorities: Tax Jurisdiction Years Subject to Examination United Kingdom 2013 - forward Singapore 2015 - forward Texas 2015 - forward Uruguay 2014 - forward U.S. Federal 2014 - forward We currently have ongoing audits in India (2003-2016) and various other jurisdictions. We do not expect that the results of these examinations will have a material effect on our financial condition or results of operations. With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2009. Tax Receivable Agreement Immediately prior to the closing of our initial public offering, we entered into the TRA that provides the 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 "Pre-IPO Existing Stockholders") the right to receive future payments from us. The future payments will equal 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 offerings, including NOLs, capital losses and the ability to realize tax amortization of certain intangible assets (collectively, the "Pre-IPO Tax Assets"). Primarily due to the enactment of the Tax Cuts and Jobs Act (the "TCJA"), which reduced the U.S. corporate income tax rate, we recorded a total net reduction in the TRA liability of $55 million across the years ended December 31, 2018 and 2017. Additionally, there was another reduction of $3 million related to certain audit and transfer pricing adjustments recorded in 2019. The TRA payments accrue interest in accordance with the terms of the TRA subsequent to the tax year in which the tax benefits are realized through the date of the benefit payment. We made payments, including interest, of $72 million in January 2020, $30 million in April 2019, and $74 million, $60 million and $101 million in January 2019, 2018 and 2017, respectively. In December 2019, we exercised our right under the terms of the TRA to accelerate our remaining payments under the TRA and make an early termination payment of $1 million to the Pre-IPO Existing Shareholders, which was included in the January 2020 payment of $72 million described above. As a result, no future payments are required to be made to the Pre-IPO Existing Stockholders under the TRA. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt As of December 31, 2019 and 2018, our outstanding debt included in our consolidated balance sheets totaled $3,343 million and $3,406 million, respectively, which are net of debt issuance costs of $15 million and $18 million, respectively, and unamortized discounts of $6 million and $7 million, respectively. The following table sets forth the face values of our outstanding debt as of December 31, 2019 and 2018 (in thousands): December 31, Rate Maturity 2019 2018 Senior secured credit facilities: Term Loan A L + 2.25% July 2022 $ 484,500 $ 527,250 Term Loan B L + 2.00% February 2024 1,843,427 1,862,237 Revolver, $400 million L + 2.00% July 2022 — — 5.375% senior secured notes due 2023 5.375% April 2023 530,000 530,000 5.25% senior secured notes due 2023 5.25% November 2023 500,000 500,000 Finance lease obligations 5,882 12,368 Face value of total debt outstanding 3,363,809 3,431,855 Less current portion of debt outstanding (81,614) (68,435) Face value of long-term debt outstanding $ 3,282,195 $ 3,363,420 Senior Secured Credit Facilities In February 2013, Sabre GLBL entered into the Amended and Restated Credit Agreement. The agreement replaced (i) the existing term loans with new classes of term loans of $1,775 million (the “2013 Term Loan B”) and $425 million (the “2013 Term Loan C”) and (ii) the existing revolving credit facility with a new revolving credit facility of $352 million (the “2013 Revolver”). In September 2013, Sabre GLBL entered into an agreement to amend the Amended and Restated Credit Agreement to add a new class of term loans in the amount of $350 million (the “2013 Incremental Term Loan Facility”). In July 2016, Sabre GLBL entered into a series of amendments (the “Credit Agreement Amendments”) to our Amended and Restated Credit Agreement to provide for an incremental term loan under a new class with an aggregate principal amount of $600 million (the “2016 Term Loan A”) and to replace the 2013 Revolver with a new revolving credit facility totaling $400 million (the “2016 Revolver”). The proceeds of $597 million, net of $3 million discount, from the 2016 Term Loan A were used to repay $350 million of outstanding principal on our 2013 Term Loan B and 2013 Incremental Term Loan Facility, on a pro rata basis, repay the $120 million then-outstanding balance on the 2016 Revolver, and pay $11 million in associated financing fees. We recognized a $4 million loss on extinguishment of debt in connection with these transactions during the year ended December 31, 2016. On February 22, 2017, Sabre GLBL entered into a Third Incremental Term Facility Amendment to our Amended and Restated Credit Agreement (the “2017 Term Facility Amendment”). The new agreement replaced the 2013 Term Loan B, 2013 Incremental Term Loan Facility and 2013 Term Loan C with a single class of term loan (the "2017 Term Loan B") with an aggregate principal amount of $1,900 million maturing on February 22, 2024. The proceeds of $1,898 million, net of $2 million discount on the 2017 Term Loan B, were used to pay off approximately $1,761 million of all existing classes of outstanding term loans (other than the 2016 Term Loan A), pay related accrued interest and pay $12 million in associated financing fees, which were recorded as debt modification costs in Other, net in the consolidated statement of operations during the three months ended March 31, 2017. The remaining proceeds of the 2017 Term Loan B were used to pay off approximately $80 million of Sabre’s outstanding mortgage on its corporate headquarters on March 31, 2017 and for other general corporate purposes. Unamortized debt issuance costs and discount related to existing classes of outstanding term loans prior to the 2017 Term Facility Amendment of $9 million and $3 million, respectively, will continue to be amortized over the remaining term of the 2017 Term Loan B along with the Term Loan B discount of $2 million. On August 23, 2017, Sabre GLBL entered into a Fourth Incremental Term Facility Amendment to our Amended and Restated Credit Agreement, Term Loan A Refinancing Amendment to the Credit Agreement, and Second Revolving Facility Refinancing Amendment to the Credit Agreement to refinance and modify the terms of the 2017 Term Loan B, the 2016 Term Loan A, and the 2016 Revolver, resulting in a reduction of the applicable margins for each of these instruments and approximately a one On March 2, 2018, Sabre GLBL entered into a Fifth Incremental Term Facility Amendment to our Amended and Restated Credit Agreement to refinance and modify the terms of the Term Loan B, resulting in a reduction of the applicable margins for the Term Loan B to 2.00% per annum for Eurocurrency rate loans and 1.00% per annum for base rate loans. We incurred no additional indebtedness as a result of this transaction and incurred $2 million in financing fees recorded within Other, net and a $1 million loss on extinguishment of debt, in our consolidated results of operations year ended December 31, 2018. Under the Amended and Restated Credit Agreement, the loan parties are subject to certain customary 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, as well as a maximum leverage ratio. Pursuant to Credit Agreement Amendments, effective July 18, 2016, the maximum leverage ratio has been adjusted to be based on the Total Net Leverage Ratio (as defined in the Amended and Restated Credit Agreement) and we are required, at all times (no longer solely when a threshold amount of revolving loans or letters of credit were outstanding), to maintain a Total Net Leverage Ratio of less than 4.5 to 1.0. As of December 31, 2019 we are in compliance with all covenants under the Amended and Restated Credit Agreement. We had no balance outstanding under the Revolver as of December 31, 2019 and as of December 31, 2018. We had outstanding letters of credit totaling $12 million and $15 million as of December 31, 2019 and 2018, respectively, which reduced our overall credit capacity under the Revolver and 2016 Revolver. Principal Payments Principal payments on the Term Loan A are due on a quarterly basis equal to 1.25% of its initial aggregate principal amount during the first two years of its term and 2.50% of its initial aggregate principal amount during the next three years of its term. Term Loan B matures on February 22, 2024, and required principal payments in equal quarterly installments of 0.25% through to the maturity date of which the remaining balance is due. For the year ended December 31, 2019, we made $62 million of scheduled principal payments. 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. Based on our results for the year ended December 31, 2018, we were not required to make an excess cash flow payment in 2019, and no excess cash flow payment was required in 2020 with respect to our results for the year ended December 31, 2019. We are further required to pay down the term loan with proceeds from certain asset sales or borrowings as defined in the Amended and Restated Credit Agreement. Interest 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. We have elected the one-month LIBOR as the floating interest rate on all of our outstanding term loans . Interest payments are due on the last day of each month as a result of electing one-month LIBOR. Interest on a portion of the outstanding loan is hedged with interest rate swaps (see Note 9. Derivatives). Eurocurrency borrowings Base rate borrowings Applicable Margin (1)(2) Applicable Margin Term Loan A 2.25% 1.00% Term Loan B 2.00% 1.00% Revolver, $400 million 2.00% 1.00% _____________________________ (1) Applicable margins do not reflect potential step ups and downs of Term Loan A and Revolver, $400 million, which are determined by the Senior Secured Leverage Ratio. See below for additional information. (2) Term Loan A, Term Loan B, and Revolver, $400 million, are subject to a 0% floor. Applicable margins for the Term Loan B are 2.00% per annum for Eurocurrency rate loans and 1.00% per annum for base rate loans over the life of the loan and are not dependent on the Senior Secured Leverage Ratio. Applicable margins for the Term Loan A and the Revolver step up by 25 basis points for any quarter if the Senior Secured Leverage Ratio is greater than or equal to 3.00 to 1.0. Applicable margins for the Term Loan A and the Revolver under the Amended and Restated Credit Agreement step down 25 basis points for any quarter if the Senior Secured Leverage Ratio is less than 2.25 to 1.0. In addition, we are required to pay a quarterly commitment fee of 0.250% per annum for unused Revolver commitments. The commitment fee may increase to 0.375% per annum if the Senior Secured Leverage Ratio is greater than or equal to 3.00 to 1.0. Our effective interest rates on borrowings under the Amended and Restated Credit Agreement for the years ended December 31, 2019, 2018 and 2017, inclusive of amounts charged to interest expense, are as follows: Year Ended December 31, 2019 2018 2017 Including the impact of interest rate swaps 4.64 % 4.57 % 4.35 % Excluding the impact of interest rate swaps 4.63 % 4.36 % 4.03 % Senior Secured Notes due 2023 In April 2015, we issued $530 million senior secured notes due in April 2023 with a stated interest rate of 5.375% and received proceeds of $522 million, net of underwriting fees and commissions. In November 2015, we issued $500 million senior secured notes due in November 2023 with a stated interest rate of 5.25% and received net proceeds of $494 million, net of underwriting fees and commissions. The senior secured notes due 2023 were issued by Sabre GLBL and are guaranteed by Sabre Holdings and each of Sabre GLBL’s existing and subsequently acquired or organized subsidiaries that are borrowers under or guarantors of our senior secured credit facilities. The senior secured notes due 2023 are secured by a first priority security interest in substantially all present and after acquired property and assets of Sabre GLBL and the guarantors of the notes, which also constitutes collateral securing indebtedness under our senior secured facilities on a first priority basis. Aggregate Maturities As of December 31, 2019, aggregate maturities of our long-term debt were as follows (in thousands): Amount Years Ending December 31, 2020 $ 81,614 2021 75,870 2022 389,323 2023 1,048,817 2024 1,768,185 Thereafter — Total $ 3,363,809 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 9. 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 expenditures' 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 hedge portions of our revenues and expenses denominated in foreign currencies with forward contracts. For example, when the dollar strengthens significantly against the foreign currencies, the decline in present value of future foreign currency expense is offset by losses 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 expense is offset by gains in the fair value of the forward contracts. 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. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion and ineffective portions of the gain or loss on the derivative instruments, and the hedge components excluded from the assessment of effectiveness, are reported as a component of other comprehensive income (“OCI”) 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. Derivatives not designated as hedging instruments are carried at fair value with changes in fair value reflected in Other, net in the consolidated statement of operations. Forward Contracts - In order to hedge our operational expenditures' exposure to foreign currency movements, we are a party to certain foreign currency forward contracts that extend until December 2020. We have designated these instruments as cash flow hedges. No hedging ineffectiveness was recorded in earnings relating to the forward contracts during the years ended December 31, 2019, 2018 and 2017. As of December 31, 2019, we estimate that $2 million in gains will be reclassified from other comprehensive income (loss) to earnings over the next 12 months. As of December 31, 2019 and 2018, 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): Outstanding Notional Amounts as of December 31, 2019 Buy Currency Sell Currency Foreign Amount USD Amount Average Contract Rate Polish Zloty US Dollar 265,000 68,971 0.2603 Indian Rupee US Dollar 4,485,000 61,708 0.0138 Singapore Dollar US Dollar 63,500 46,759 0.7364 British Pound Sterling US Dollar 18,400 24,109 1.3103 Australian Dollar US Dollar 16,500 11,521 0.6982 Swedish Krona US Dollar 38,100 4,106 0.1075 Outstanding Notional Amount as of December 31, 2018 Buy Currency Sell Currency Foreign Amount USD Amount Average Contract Rate Polish Zloty US Dollar 232,500 64,281 0.2765 Singapore Dollar US Dollar 59,800 44,504 0.7442 Indian Rupee US Dollar 2,880,000 39,956 0.0139 British Pound Sterling US Dollar 19,600 26,525 1.3533 Australian Dollar US Dollar 23,950 17,674 0.7379 Swedish Krona US Dollar 48,250 5,678 0.1177 Brazilian Real US Dollar 14,300 3,753 0.2615 Interest Rate Swap Contracts —Interest rate swaps outstanding at December 31, 2019 and matured during the years ended December 31, 2019, 2018 and 2017 are as follows: Notional Amount Interest Rate Received Interest Rate Paid Effective Date Maturity Date Designated as Hedging Instrument $750 million 1 month LIBOR (2) 1.15% March 31, 2017 December 31, 2017 $750 million 1 month LIBOR (2) 1.65% December 29, 2017 December 31, 2018 $1,350 million 1 month LIBOR (2) 2.27% December 31, 2018 December 31, 2019 $1,200 million 1 month LIBOR (2) 2.19% December 31, 2019 December 31, 2020 $600 million 1 month LIBOR (2) 2.81% December 31, 2020 December 31, 2021 Not Designated as Hedging Instrument (1) $750 million 1 month LIBOR (3) 2.19% December 30, 2016 December 29, 2017 $750 million 1.18% 1 month LIBOR March 31, 2017 December 31, 2017 $750 million 1 month LIBOR (3) 2.61% December 29, 2017 December 31, 2018 $750 million 1.67% 1 month LIBOR December 29, 2017 December 31, 2018 _____________________ (1) Subject to a 1% floor. (2) Subject to a 0% floor. (3) As of February 22, 2017. In connection with the 2017 Term Facility Amendment, we entered into new forward starting interest rate swaps effective March 31, 2017 to hedge the interest payments associated with $750 million of the floating-rate 2017 Term Loan B. The total notional amount outstanding is $750 million for the full years 2018 and 2019. In September 2017, we entered into new forward starting interest rate swaps to hedge the interest payments associated with $750 million of the floating-rate Term Loan B. The total notional outstanding of $750 million became effective December 31, 2019 and extends through the full year 2020. In April 2018, we entered into new forward starting interest rate swaps to hedge the interest payments associated with $600 million, $300 million and $450 million of the floating-rate Term Loan B related to full year 2019, 2020 and 2021, respectively. In December 2018, we entered into new forward starting interest rate swaps to hedge the interest payments associated with $150 million of the floating-rate Term Loan B for the full years 2020 and 2021. We have designated these swaps as cash flow hedges. The estimated fair values of our derivatives designated as hedging instruments as of December 31, 2019 and 2018 are as follows (in thousands): Derivative Assets (Liabilities) Fair Value as of December 31, Derivatives Designated as Hedging Instruments Consolidated Balance Sheet Location 2019 2018 Foreign exchange contracts Prepaid expenses and other current assets $ 1,953 $ — Foreign exchange contracts Other accrued liabilities — (4,285) Interest rate swaps Prepaid expenses and other current assets — 3,674 Interest rate swaps Other assets, net — 295 Interest rate swaps Other accrued liabilities (7,020) — Interest rate swaps Other noncurrent liabilities (7,918) — Total $ (12,985) $ (316) The effects of derivative instruments, net of taxes, on OCI for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands): Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion Year Ended December 31, Derivatives in Cash Flow Hedging Relationships 2019 2018 2017 Foreign exchange contracts $ (360) $ (8,250) $ 13,205 Interest rate swaps (14,857) 1,907 2,583 Total $ (15,217) $ (6,343) $ 15,788 Amount of Loss (Gain) Reclassified from Accumulated OCI into Income, Effective Portion Year Ended December 31, Derivatives in Cash Flow Hedging Relationships Income Statement Location 2019 2018 2017 Foreign exchange contracts Cost of revenue $ 5,351 $ (322) $ (3,001) Interest rate swaps Interest Expense, net 156 3,999 5,083 Total $ 5,507 $ 3,677 $ 2,082 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. 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: 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 3—Inputs that are unobservable and are supported by little or no market activity and reflect the use of significant management judgment. The classification of a financial asset or liability 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. 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 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 are 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. Pension Plan Assets —See Note 15. Pension and Other Postretirement Benefit Plans, for fair value information on our pension plan assets. 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, 2019 and 2018 (in thousands): Fair Value at Reporting Date Using December 31, 2019 Level 1 Level 2 Level 3 Derivatives: Foreign currency forward contracts $ 1,953 $ — $ 1,953 $ — Interest rate swap contracts (14,938) — (14,938) — Total $ (12,985) $ — $ (12,985) $ — Fair Value at Reporting Date Using December 31, 2018 Level 1 Level 2 Level 3 Derivatives: Foreign currency forward contracts $ (4,285) $ — $ (4,285) $ — Interest rate swap contracts 3,969 — 3,969 — Total $ (316) $ — $ (316) $ — There were no transfers between Levels 1 and 2 within the fair value hierarchy for the years ended December 31, 2019 and 2018. Assets that are Measured at Fair Value on a Nonrecurring Basis As described in Note 1. Summary of Business and Significant Accounting Policies, our impairment review of goodwill is performed annually, as of October 1 of each year. In addition, goodwill, property and equipment and intangible assets are reviewed for impairment if events and circumstances indicate that their carrying amounts may not be recoverable. Other Financial Instruments The carrying value of our financial instruments including cash and cash equivalents, and accounts receivable approximates their fair values. The fair values of our senior secured notes due 2023 and term loans under our Amended and Restated Credit Agreement are determined based on quoted market prices for a similar liability when traded as an asset in an active market, a Level 2 input. The following table presents the fair value and carrying value of all our notes and term loans under our Amended and Restated Credit Agreement as of December 31, 2019 and 2018 (in thousands): Fair Value at December 31, Carrying Value (1) at December 31, Financial Instrument 2019 2018 2019 2018 Term Loan A $ 485,106 $ 520,000 $ 483,317 $ 525,514 Term Loan B 1,856,100 1,798,223 1,838,741 1,856,496 5.375 % Senior Secured Notes Due 2023 543,536 529,799 530,000 530,000 5.25% Senior Secured Notes Due 2023 514,670 495,248 500,000 500,000 _____________________ (1) Excludes net unamortized debt issuance costs. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 11. Leases In the first quarter of 2019, we adopted Accounting Standards Codification ("ASC") 842, Leases, which replaced the previous accounting standard. The new lease standard is a right-of-use model, requiring most lessee agreements to be recorded on the balance sheet. The intent of the standard is to provide greater transparency about lessee obligations and activities. The primary impact to our financial statements is that most operating leases are recorded on our consolidated balance sheet and enhanced disclosures are required for both operating and finance leases. As permitted by ASC 842, our accounting policy is to evaluate lessee agreements with a minimum term greater than one year for recording on the balance sheet. We adopted the standard using the modified retrospective approach, as of January 1, 2019. Prior year's financial results were not restated. On the adoption date, we recorded a right-of-use asset for $72 million in other assets, net, with a corresponding offset to other accrued liabilities and other noncurrent liabilities for $25 million and $47 million, respectively. There was no impact to retained deficit from adoption of the new standard. The following table presents the components of lease expense (in thousands): Year Ended Operating lease cost $ 27,035 Finance lease cost: Amortization of right-of-use assets $ 7,073 Interest on lease liabilities 453 Total finance lease cost $ 7,526 The following table presents supplemental cash flow information related to leases (in thousands): Year Ended Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 28,374 Operating cash flows used in finance leases 453 Financing cash flows used in finance leases 6,731 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 27,116 Finance leases 397 The following table presents supplemental balance sheet information related to leases (in thousands): Year Ended 12/31/2019 Operating Leases Operating lease right-of-use assets $ 64,191 Other accrued liabilities 21,932 Other noncurrent liabilities 49,970 Total operating lease liabilities $ 71,902 Finance Leases Property and equipment 35,349 Accumulated depreciation (27,163) Property and equipment, net $ 8,186 Other accrued liabilities 5,804 Other noncurrent liabilities 78 Total finance lease liabilities $ 5,882 The following table presents other supplemental information related to leases: December 31, 2019 Weighted Average Remaining Lease Term (in years) Operating leases 4.9 Finance leases 1.2 Weighted Average Discount Rate Operating leases 5.4 % Finance leases 4.9 % Lease Commitments We lease certain facilities under long term operating leases. Certain of our lease agreements contain renewal options, early termination options and/or payment escalations based on fixed annual increases, local consumer price index changes or market rental reviews. We recognize rent expense with fixed rate increases and/or fixed rent reductions on a straight line basis over the term of the lease. We lease approximately 1.6 million square feet of office space in 93 locations in 48 countries. For the years ended December 31, 2019, 2018 and 2017, we recognized rent expense of $29 million, $30 million and $32 million, respectively. Our leases have remaining minimum terms that range between one five Year Ending December 31, Operating Leases Finance Leases 2020 $ 22,461 $ 5,896 2021 16,679 108 2022 13,319 12 2023 9,992 6 2024 8,569 — Thereafter 11,899 — Total 82,919 6,022 Imputed Interest (11,017) (140) Total $ 71,902 $ 5,882 In addition to the above, as of December 31, 2019, we have entered into an additional operating lease with future lease payments of $39 million that will commence in 2020 with a lease term of 10 years. |
Leases | 11. Leases In the first quarter of 2019, we adopted Accounting Standards Codification ("ASC") 842, Leases, which replaced the previous accounting standard. The new lease standard is a right-of-use model, requiring most lessee agreements to be recorded on the balance sheet. The intent of the standard is to provide greater transparency about lessee obligations and activities. The primary impact to our financial statements is that most operating leases are recorded on our consolidated balance sheet and enhanced disclosures are required for both operating and finance leases. As permitted by ASC 842, our accounting policy is to evaluate lessee agreements with a minimum term greater than one year for recording on the balance sheet. We adopted the standard using the modified retrospective approach, as of January 1, 2019. Prior year's financial results were not restated. On the adoption date, we recorded a right-of-use asset for $72 million in other assets, net, with a corresponding offset to other accrued liabilities and other noncurrent liabilities for $25 million and $47 million, respectively. There was no impact to retained deficit from adoption of the new standard. The following table presents the components of lease expense (in thousands): Year Ended Operating lease cost $ 27,035 Finance lease cost: Amortization of right-of-use assets $ 7,073 Interest on lease liabilities 453 Total finance lease cost $ 7,526 The following table presents supplemental cash flow information related to leases (in thousands): Year Ended Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 28,374 Operating cash flows used in finance leases 453 Financing cash flows used in finance leases 6,731 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 27,116 Finance leases 397 The following table presents supplemental balance sheet information related to leases (in thousands): Year Ended 12/31/2019 Operating Leases Operating lease right-of-use assets $ 64,191 Other accrued liabilities 21,932 Other noncurrent liabilities 49,970 Total operating lease liabilities $ 71,902 Finance Leases Property and equipment 35,349 Accumulated depreciation (27,163) Property and equipment, net $ 8,186 Other accrued liabilities 5,804 Other noncurrent liabilities 78 Total finance lease liabilities $ 5,882 The following table presents other supplemental information related to leases: December 31, 2019 Weighted Average Remaining Lease Term (in years) Operating leases 4.9 Finance leases 1.2 Weighted Average Discount Rate Operating leases 5.4 % Finance leases 4.9 % Lease Commitments We lease certain facilities under long term operating leases. Certain of our lease agreements contain renewal options, early termination options and/or payment escalations based on fixed annual increases, local consumer price index changes or market rental reviews. We recognize rent expense with fixed rate increases and/or fixed rent reductions on a straight line basis over the term of the lease. We lease approximately 1.6 million square feet of office space in 93 locations in 48 countries. For the years ended December 31, 2019, 2018 and 2017, we recognized rent expense of $29 million, $30 million and $32 million, respectively. Our leases have remaining minimum terms that range between one five Year Ending December 31, Operating Leases Finance Leases 2020 $ 22,461 $ 5,896 2021 16,679 108 2022 13,319 12 2023 9,992 6 2024 8,569 — Thereafter 11,899 — Total 82,919 6,022 Imputed Interest (11,017) (140) Total $ 71,902 $ 5,882 In addition to the above, as of December 31, 2019, we have entered into an additional operating lease with future lease payments of $39 million that will commence in 2020 with a lease term of 10 years. |
Stock and Stockholders_ Equity
Stock and Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stock and Stockholders’ Equity | 12. Stock and Stockholders’ Equity Secondary Public Offerings and Share Repurchases During the year ended December 31, 2018, certain of our stockholders sold an aggregate of 69,304,636 shares of our common stock through secondary public offerings. We did not offer any shares or receive any proceeds from these secondary public offerings. Following the secondary public offering of approximately 23,304,636 shares of common stock during the fourth quarter of 2018, existing stockholders affiliated with TPG and Silver Lake no longer held any shares of our common stock . In February 2017, we announced the approval of a multi-year share repurchase program to purchase up to $500 million of Sabre's common stock outstanding. Repurchases under the program may take place in the open market or privately negotiated transactions. We repurchased 3,673,768 shares totaling $78 million, 1,075,255 shares totaling $26 million, and 5,779,769 shares totaling $109 million of our common stock during the years ended December 31, 2019, 2018, and 2017, respectively. Common Stock Dividends We paid a quarterly cash dividend on our common stock of $0.14 per share, totaling $154 million, $0.14 per share, totaling $154 million, and $0.14 per share, totaling $155 million, during the years ended December 31, 2019, 2018 and 2017, respectively. Our board of directors has declared a cash dividend of $0.14 per share of our common stock, which will be paid on March 30, 2020 to stockholders of record as of March 20, 2020. |
Equity-Based Awards
Equity-Based Awards | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Awards | 13. Equity-Based Awards As of December 31, 2019, our outstanding equity-based compensation plans and agreements include the Sovereign Holdings, Inc. Management Equity Incentive Plan (“Sovereign MEIP”), the Sovereign Holdings, Inc. 2012 Management Equity Incentive Plan (“Sovereign 2012 MEIP”), the Sabre Corporation 2014 Omnibus Incentive Compensation Plan (the “2014 Omnibus Plan”), the Sabre Corporation 2016 Omnibus Incentive Compensation Plan (the “2016 Omnibus Plan”), the Sabre Corporation 2019 Omnibus Incentive Compensation Plan ("the 2019 Omnibus Plan"), and the 2019 Director Equity Compensation Plan ("2019 Director Plan"). Our 2019 Omnibus Plan serves as a successor to the 2016 Omnibus Plan, the 2014 Omnibus Plan, the Sovereign MEIP and Sovereign 2012 MEIP and provides for the issuance of stock options, restricted shares, restricted stock units (“RSUs”), performance-based RSU awards (“PSUs”), cash incentive compensation and other stock-based awards. Our 2019 Director Plan provides for the issuance of RSUs, Deferred Stock Units ("DSUs"), and stock options to non-employee Directors. Outstanding awards under the 2016 Omnibus Plan, the 2014 Omnibus Plan, the Sovereign MEIP and Sovereign 2012 MEIP continue to be subject to the terms and conditions of their respective plan. We initially reserved 12,500,000 shares of our common stock for issuance under our 2019 Omnibus Plan and 500,000 shares of our common stock for issuance under our 2019 Director Plan. We added 6,720,911 shares that were reserved but not issued under the Sovereign MEIP, Sovereign 2012 MEIP, 2014 Omnibus, and 2016 Omnibus Plans to the 2019 Omnibus Plan reserves, for a total of 19,220,911 authorized shares of common stock for issuance. Time-based options granted under the 2019, 2016, and 2014 Omnibus Plans generally vest over a four four four 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, 2019 2018 2017 Exercise price $ 21.37 $ 22.89 $ 21.33 Average risk-free interest rate 2.40 % 2.72 % 2.10 % Expected life (in years) 6.11 6.11 6.11 Implied volatility 26.32 % 23.17 % 22.02 % Dividend yield 2.62 % 2.46 % 2.64 % The following table summarizes the stock option award activities under our outstanding equity based compensation plans and agreements for the year ended December 31, 2019: Weighted-Average Quantity Exercise Price Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) (1) Outstanding at December 31, 2018 4,197,243 $ 20.80 7.6 $ 9,257 Granted 1,288,430 21.37 Exercised (492,061) 15.14 Cancelled (515,246) 21.87 Outstanding at December 31, 2019 4,478,366 $ 21.46 7.4 $ 8,000 Vested and exercisable at December 31, 2019 2,201,768 $ 21.05 6.1 $ 5,832 ______________________ (1) Aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options awards and the closing price of our common stock of $22.44 on December 31, 2019. For the years ended December 31, 2019, 2018 and 2017, the total intrinsic value of stock options exercised totaled $4 million, $6 million and $19 million, respectively. The weighted-average fair values of options granted were $4.55, $4.58, and $3.67 during the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, $9 million in unrecognized compensation expense associated with stock options will be recognized over a weighted-average period of 2.7 years. The following table summarizes the activities for our RSUs for the year ended December 31, 2019: Quantity Weighted-Average Grant Date Fair Value Unvested at December 31, 2018 5,612,887 $ 23.11 Granted 3,426,800 21.49 Vested (1,948,707) 24.06 Cancelled (725,400) 21.76 Unvested at December 31, 2019 6,365,580 $ 22.06 The total fair value of RSUs vested, as of their respective vesting dates, was $47 million, $30 million, and $23 million during the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, approximately $101 million in unrecognized compensation expense associated with RSUs will be recognized over a weighted average period of 2.6 years. The following table summarizes the activities for our PSUs for the year ended December 31, 2019: Quantity Weighted-Average Grant Date Fair Value Unvested at December 31, 2018 1,718,770 $ 22.60 Granted 1,210,331 21.36 Vested (508,168) 22.69 Cancelled (331,428) 22.25 Unvested at December 31, 2019 2,089,505 $ 21.99 The total fair value of PSUs vested, as of their respective vesting dates, was $11 million, $9 million and $14 million during the years ended December 31, 2019, 2018 and 2017, respectively. The recognition of compensation expense associated with PSUs is contingent upon the achievement of annual company-based performance measures. As of December 31, 2019, unrecognized compensation expense associated with PSUs totaled $14 million, $12 million and $6 million for the annual measurement periods ending December 31, 2020, 2021 and 2022, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 14. Earnings Per Share The following table reconciles the numerators and denominators used in the computations of basic and diluted earnings per share from continuing operations (in thousands, expect per share data): Year Ended December 31, 2019 2018 2017 Numerator: Income from continuing operations $ 164,312 $ 340,921 $ 249,576 Less: Net income attributable to noncontrolling interests 3,954 5,129 5,113 Net income from continuing operations available to common stockholders, basic and diluted $ 160,358 $ 335,792 $ 244,463 Denominator: Basic weighted-average common shares outstanding 274,168 275,235 276,893 Add: Dilutive effect of stock options and restricted stock awards 2,049 2,283 1,427 Diluted weighted-average common shares outstanding 276,217 277,518 278,320 Earnings per share from continuing operations: Basic $ 0.58 $ 1.22 $ 0.88 Diluted $ 0.58 $ 1.21 $ 0.88 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 3 million, 3 million and 5 million of anti-dilutive common stock equivalents for the years ended December 31, 2019 , |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | 15. Pension and Other Postretirement Benefit Plans 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 recognized expenses related to the 401(k) Plan of approximately $23 million, $22 million and $25 million for the years ended December 31, 2019, 2018 and 2017, respectively. 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, and as a result, no additional pension benefits have been accrued since 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 postretirement benefit plans for certain employees in Canada and other jurisdictions. The following tables provide a reconciliation of the changes in the LPP’s benefit obligations and fair value of assets during the years ended December 31, 2019 and 2018, and the unfunded status as of December 31, 2019 and 2018 (in thousands): Year Ended December 31, 2019 2018 Change in benefit obligation: Benefit obligation at January 1 $ (428,216) $ (459,439) Interest cost (18,324) (17,090) Actuarial (loss) gain, net (47,632) 18,529 Benefits paid 30,736 29,784 Benefit obligation at December 31 $ (463,436) $ (428,216) Change in plan assets: Fair value of assets at January 1 $ 312,455 $ 347,773 Actual return on plan assets 54,945 (25,333) Employer contributions 1,600 19,800 Benefits paid (30,736) (29,785) Fair value of assets at December 31 $ 338,264 $ 312,455 Unfunded status at December 31 $ (125,172) $ (115,761) The actuarial loss, net of $48 million for the year ended December 31, 2019 is attributable to a decrease in the discount rate. The actuarial gain, net of $19 million for the year ended December 31, 2018, is attributable to an increase in the discount rate. The net benefit obligation of $125 million and $116 million as of December 31, 2019 and 2018, respectively, is included in other noncurrent liabilities in our consolidated balance sheets. The amounts recognized in accumulated other comprehensive income (loss) associated with the LPP, net of deferred taxes of $42 million and $40 million as of December 31, 2019 and 2018, respectively, are as follows (in thousands): December 31, 2019 2018 Net actuarial loss $ (154,608) $ (151,444) Prior service credit 10,210 11,322 Accumulated other comprehensive loss $ (144,398) $ (140,122) The following table provides the components of net periodic benefit costs associated with the LPP and the principal assumptions used in the measurement of the LPP benefit obligations and net benefit costs for the three years ended December 31, 2019, 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Interest cost $ 18,324 $ 17,090 $ 18,731 Expected return on plan assets (18,510) (18,790) (20,934) Amortization of prior service credit (1,432) (1,432) (1,432) Amortization of actuarial loss 6,516 7,362 6,517 Net cost $ 4,898 $ 4,230 $ 2,882 Weighted-average discount rate used to measure benefit obligations 3.53 % 4.41 % 3.81 % Weighted average assumptions used to determine net benefit cost: Discount rate 4.41 % 3.81 % 4.36 % Expected return on plan assets 5.75 % 5.75 % 6.50 % The following table provides the pre-tax amounts recognized in other comprehensive income (loss), including the amortization of the actuarial loss and prior service credit, associated with the LPP for the years ended December 31, 2019, 2018 and 2017 (in thousands): Obligations Recognized in Year Ended December 31, Other Comprehensive Income 2019 2018 2017 Net actuarial loss $ 11,196 $ 25,595 $ 679 Amortization of actuarial loss (6,516) (7,362) (6,517) Amortization of prior service credit 1,432 1,432 1,432 Total loss (income) recognized in other comprehensive income $ 6,112 $ 19,665 $ (4,406) Total recognized in net periodic benefit cost and other comprehensive income $ 11,010 $ 23,895 $ (1,524) 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 40% global equities, 15% real estate assets, 15% diversified credit and 30% liability hedging fixed income. 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 10. Fair Value Measurements, the following tables present the fair value of the LPP assets as of December 31, 2019, and 2018: Fair Value Measurements at December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Common collective trusts: Global equity securities $ — $ 323,810 $ — $ 323,810 Money market mutual fund 4,506 — — 4,506 Real estate — — 9,948 9,948 Total assets at fair value $ 4,506 $ 323,810 $ 9,948 $ 338,264 Fair Value Measurements at December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Common collective trusts: Fixed income securities $ — $ 181,156 $ — $ 181,156 Global equity securities — 108,152 — 108,152 Money market mutual fund 2,311 — — 2,311 Real estate — — 20,836 20,836 Total assets at fair value $ 2,311 $ 289,308 $ 20,836 $ 312,455 The following table provides a rollforward of plan assets valued using significant unobservable inputs (level 3), in thousands: Real Estate Ending balance at December 31, 2017 $ 19,455 Contributions 307 Net distributions (307) Advisory fee (198) Net investment income 845 Unrealized gain 717 Net realized gain 17 Ending balance at December 31, 2018 20,836 Contributions 331 Net distributions (11,235) Advisory fee (205) Net investment income 771 Unrealized loss (541) Net realized loss (9) Ending balance at December 31, 2019 $ 9,948 We contributed $2 million and $20 million to fund our defined benefit pension plans during the years ended December 31, 2019 and 2018, respectively. Annual contributions to our defined benefit pension plans in the United States, Canada, and other jurisdictions are based on several factors that may vary from year to year. Our funding practice 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 $17 million in contributions to our defined benefit pension plans in 2020. 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 2020. We expect the LPP to make the following estimated future benefit payments (in thousands): Amount 2020 $ 30,729 2021 31,864 2022 32,304 2023 31,067 2024 35,036 2025-2029 170,880 |
Schedule of Obligations Recognized in Other Comprehensive Income | The following table provides the pre-tax amounts recognized in other comprehensive income (loss), including the amortization of the actuarial loss and prior service credit, associated with the LPP for the years ended December 31, 2019, 2018 and 2017 (in thousands): Obligations Recognized in Year Ended December 31, Other Comprehensive Income 2019 2018 2017 Net actuarial loss $ 11,196 $ 25,595 $ 679 Amortization of actuarial loss (6,516) (7,362) (6,517) Amortization of prior service credit 1,432 1,432 1,432 Total loss (income) recognized in other comprehensive income $ 6,112 $ 19,665 $ (4,406) Total recognized in net periodic benefit cost and other comprehensive income $ 11,010 $ 23,895 $ (1,524) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Purchase Commitments In the ordinary course of business, we make various commitments in connection with the purchase of goods and services from specific suppliers. We have outstanding commitments of approximately $2.6 billion, which includes commitments outstanding as of December 31, 2019 and a commitment entered into in January 2020. These purchase commitments extend through 2030. Legal Proceedings 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. Antitrust Litigation and Investigations US Airways Antitrust Litigation In April 2011, US Airways filed suit against 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 fewer than 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, relating to our contracts with US Airways, which US Airways claims contain anticompetitive provisions, and an alleged conspiracy with the other GDSs, allegedly to maintain the industry structure and not to compete for content. We strongly deny all of the allegations made by US Airways. Sabre filed summary judgment motions in April 2014. In January 2015, the court issued an order granting Sabre's summary judgment motions in part, eliminating a majority of US Airways' alleged damages and rejecting its request for injunctive relief by which US Airways sought to bar Sabre from enforcing certain provisions in our contracts. In September 2015, the court also dismissed US Airways' claim for declaratory relief. In February 2017, US Airways sought reconsideration of the court's opinion dismissing the claim for declaratory relief, which the court denied in March 2017. The trial on the remaining claims commenced in October 2016. In December 2016, the jury issued a verdict in favor of US Airways with respect to its claim under Section 1 of the Sherman Act regarding Sabre's contract with US Airways and awarded it $5 million in single damages. The jury rejected US Airways' claim alleging a conspiracy with the other GDSs. We continue to believe that our business practices and contract terms are lawful. Based on the jury’s verdict, in March 2017 the court entered final judgment in favor of US Airways in the amount of $15 million, which is three times the jury’s award of $5 million as required by the Sherman Act. As a result of the jury's verdict, US Airways was also entitled to receive reasonable attorneys’ fees and costs under the Sherman Act. As such, it filed a motion seeking approximately $125 million in attorneys’ fees and costs, the amount of which we strongly dispute. In January 2018, the court denied US Airways' motion seeking attorneys' fees and costs, without prejudice. In the fourth quarter of 2016, we accrued a loss of $32 million, which represented the court's final judgment of $15 million, plus our estimate of $17 million for US Airways' reasonable attorneys’ fees, expenses and costs. In April 2017, we filed an appeal with the United States Court of Appeals for the Second Circuit seeking a reversal of the judgment. US Airways also filed a counter-appeal challenging earlier court orders, including the above-referenced orders dismissing and/or issuing summary judgment as to portions of its claims and damages. In connection with this appeal, we posted an appellate bond equal to the aggregate amount of the $15 million judgment entered plus interest, which stayed the judgment pending the appeal. The Second Circuit heard oral arguments on this matter in December 2018. In September 2019, the Second Circuit issued its Order and Opinion. The Second Circuit vacated the judgment with respect to US Airways’ claim under Section 1, reversed the trial court’s dismissal of US Airways’ claims relating to Section 2, and remanded the case to district court for a new trial. In addition, the Second Circuit affirmed the trial court’s ruling limiting US Airways’ damages. The judgment in our favor on US Airways' conspiracy claim remains intact. The lawsuit has been remanded to federal court in the Southern District of New York for further proceedings. Currently, no trial date has been set. As a result of the Second Circuit’s opinion, we believe that the claims associated with this case are not probable; therefore, in the third quarter of 2019, we reversed our previously accrued loss of $32 million and do not have any losses accrued for this matter as of December 31, 2019. 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, including any changes to our business that may be required as a result of the litigation. If favorable resolution of the matter is not reached upon remand, any monetary damages are subject to trebling under the antitrust laws and US Airways would be eligible to be reimbursed by us for its reasonable 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 private or public financing. Depending on the outcome of the litigation, any of these consequences could have a material adverse effect on our business, financial condition and results of operations. Department of Justice Lawsuit on Farelogix Acquisition On August 20, 2019, the DOJ filed a complaint in federal court in the District of Delaware, seeking a permanent injunction to prevent Sabre from acquiring Farelogix, Inc. ("Farelogix"), alleging that the proposed acquisition is likely to substantially lessen competition in violation of federal antitrust law. Sabre disputes the government's allegations and believes the acquisition is pro-competitive and ultimately will be completed. The trial concluded on February 6, 2020 and the trial court has not yet issued its decision. Sabre and Farelogix have extended the termination date of their acquisition agreement to April 30, 2020, allowing time to resolve the challenge by the DOJ. In addition, the CMA has referred its review of the acquisition for a Phase 2 investigation and has published its provisional findings of competition concerns. Under the acquisition agreement, as amended, we have agreed to advance certain attorneys’ fees incurred by Farelogix in responding to certain governmental reviews of the acquisition and in defending against certain antitrust proceedings, which have totaled $20 million for the year ended December 31, 2019. These advances will be applied against the purchase price upon closing. The acquisition agreement, as amended, contains certain customary termination rights, including the right of either party to terminate the acquisition agreement if the acquisition has not occurred by April 30, 2020. We could be obligated to pay Farelogix up to an additional $25 million, either in the form of additional advances or in the form of a termination fee depending on the circumstances. European Commission’s Directorate-General for Competition ("EC") Investigation On November 23, 2018, the EC announced that it has opened an investigation of us and another GDS to assess whether our respective agreements with airlines and travel agents may restrict competition in breach of European Union antitrust rules. We are fully cooperating with the EC’s investigation and are unable to make any prediction regarding its outcome at this time. There is no legal deadline for the EC to bring an antitrust investigation to an end, and the duration of the investigation is uncertain. Depending on the findings of the EC, the outcome of the investigation could have a material adverse effect on our business, financial condition and results of operations. We may incur significant fees, costs and expenses for as long as this investigation is ongoing. We intend to vigorously defend against any allegations of anticompetitive activity by the EC. Department of Justice Investigation On May 19, 2011, we received a civil investigative demand ("CID") from the 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. We have not received any communications from the DOJ regarding this matter for several years; however, we have not been notified that this matter is closed. 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. The DIT has continued to issue further tax assessments on a similar basis for subsequent years; however, the tax assessments for assessment years ending March 2007 and later are no longer material. We appealed the tax assessments for assessment years ending March 1998 through March 2006 and the Indian Commissioner of Income Tax Appeals returned a mixed verdict. We filed further appeals with the Income Tax Appellate Tribunal (“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. Our case has been listed for hearing with the Supreme Court, and it has not yet been presented. We have appealed the tax assessments for the assessment years ended March 2013 to March 2016 with the ITAT and no trial date has been set for these subsequent years. In addition, Sabre Asia Pacific Pte Ltd ("SAPPL") is currently a defendant in similar income tax litigation brought by the DIT. The dispute arose when the DIT asserted that SAPPL has a permanent establishment within the meaning of the Income Tax Treaty between Singapore and India and accordingly issued tax assessments for assessment years ending March 2000 through March 2005. SAPPL appealed the tax assessments, and the Indian Commissioner of Income Tax (Appeals) returned a mixed verdict. SAPPL filed further appeals with the ITAT. The ITAT ruled in SAPPL’s favor, finding that no income would be chargeable to tax for assessment years ending March 2000 through March 2005. The DIT appealed those decisions to the Delhi High Court. No hearing date has been set. The DIT also assessed taxes on a similar basis for assessment years ending March 2006 through March 2016 and appeals for assessment years ending March 2006 through 2016 are pending before the ITAT. If the DIT were to fully prevail on every claim against us, including SAPPL, we could be subject to taxes, interest and penalties of approximately $45 million as of December 31, 2019. We intend to continue to aggressively defend against each of the foregoing 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. We do not believe this outcome is more likely than not and therefore have not made any provisions or recorded any liability for the potential resolution of any of these claims. Indian Service Tax Litigation SAPPL's Indian subsidiary is also subject to litigation by the India Director General (Service Tax) ("DGST"), which has assessed the subsidiary for multiple years related to its alleged failure to pay service tax on marketing fees and reimbursements of expenses. Indian courts have returned verdicts favorable to the Indian subsidiary. The DGST has appealed the verdict to the Indian Supreme Court. We do not believe that an adverse outcome is probable and therefore have not made any provisions or recorded any liability for the potential resolution of any of these claims. 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. Other Air Berlin In November 2017, in connection with Air Berlin’s insolvency proceedings, we requested that Air Berlin make an election under the German Insolvency Act on whether to perform or terminate its contract with us. In January 2018, Air Berlin notified us by letter that it was exercising its right under the German Insolvency Act to terminate its contract with us. In addition, Air Berlin’s letter alleged various breaches by us of the contract and asserted that it had suffered a significant amount of damages associated with its claims. Air Berlin has not commenced any formal action with respect to its claims. We believe that losses associated with these claims are neither probable nor estimable and therefore have not accrued any losses as of December 31, 2019. We may incur significant fees, costs and expenses for as long as this matter is ongoing. We intend to vigorously defend against these claims. SynXis Central Reservation System As previously disclosed, we became aware of an incident involving unauthorized access to payment information contained in a subset of hotel reservations processed through the Sabre Hospitality Solutions SynXis Central Reservation System (the “HS Central Reservation System”). Our investigation was supported by third party experts, including a leading cybersecurity firm. Our investigation determined that an unauthorized party: obtained access to account credentials that permitted access to a subset of hotel reservations processed through the HS Central Reservation System; used the account credentials to view a credit card summary page on the HS Central Reservation System and access payment card information (although we use encryption, this credential had the right to see unencrypted card data); and first obtained access to payment card information and some other reservation information on August 10, 2016. The last access to payment card information was on March 9, 2017. The unauthorized party was able to access information for certain hotel reservations, including cardholder name; payment card number; card expiration date; and, for a subset of reservations, card security code. The unauthorized party was also able, in some cases, to access certain information such as guest name(s), email, phone number, address, and other information if provided to the HS Central Reservation System. Information such as Social Security, passport, or driver’s license number was not accessed. The investigation did not uncover forensic evidence that the unauthorized party removed any information from the system, but it is a possibility. We took successful measures to ensure this unauthorized access to the HS Central Reservation System was stopped and is no longer possible. There is no indication that any of our systems beyond the HS Central Reservation System, such as Sabre’s Airline Solutions and Travel Network platforms, were affected or accessed by the unauthorized party. We notified law enforcement and the payment card brands and engaged a payment card industry data ("PCI") forensic investigator to investigate this incident at the payment card brands' request. We have notified customers and other companies that use or interact with, directly or indirectly, the HS Central Reservation System about the incident. We are also cooperating with various governmental authorities that are investigating this incident. Separately, in November 2017, Sabre Hospitality Solutions observed a pattern of activity that, after further investigation, led it to believe that an unauthorized party improperly obtained access to certain hotel user credentials for purposes of accessing the HS Central Reservation System. We deactivated the compromised accounts and notified law enforcement of this activity. We also notified the payment card brands, and at their request, we have engaged a PCI forensic investigator to investigate this incident. We have not found any evidence of a breach of the network security of the HS Central Reservation System, and we believe that the number of affected reservations represents only a fraction of 1% of the bookings in the HS Central Reservation System. Although the costs related to these incidents, including any associated penalties assessed by any governmental authority or payment card brand or indemnification obligations to our customers, as well as any other impacts or remediation related to this incident, may be material, it is not possible at this time to determine whether we will incur, or to reasonably estimate the amount of, any liabilities in connection with them. We maintain insurance that covers certain aspects of cyber risks, and we continue to work with our insurance carriers in these matters. Other Tax Matters We operate in numerous jurisdictions in which taxing authorities may challenge our position with respect to income and non-income based taxes. We routinely receive inquiries and may also from time to time receive challenges or assessments from these taxing authorities. With respect to non-income based taxes, we recognize liabilities when we believe it is probable that amounts will be owed to the taxing authorities and such amounts are estimable. For example, in most countries we pay and collect Value Added Tax (“VAT”) when procuring goods and services, or providing services, within the normal course of business. VAT receivables are established in jurisdictions where VAT paid exceeds VAT collected and are recoverable through the filing of refund claims. These receivables have inherent audit and collection risks unique to the specific jurisdictions that evaluate our refund claims. Our most significant VAT receivable is in Greece. As of December 31, 2019, we have approximately $22 million in VAT receivables for which refund claims have been filed with the Greek government. Although we have paid these amounts and believe we are entitled to a refund, the Greek tax authorities have challenged our position. In Greece, as in other jurisdictions, we intend to vigorously defend our positions against any claims that are not insignificant, including through litigation when necessary. As of December 31, 2019, we do not believe that an adverse outcome is probable with respect to the claims of the Greek tax authorities or any other jurisdiction; as a result, we have not accrued any material amounts for exposure related to such contingencies or adverse decisions. Nevertheless, we may incur expenses in future periods related to such matters, including litigation costs and possible pre-payment of a portion of any assessed tax amount to defend our position, and if our positions are ultimately rejected, it could have a material impact to our results of operations. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 17. 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. Effective the first quarter of 2018, our business has three reportable segments: (i) Travel Network, (ii) Airline Solutions and (iii) Hospitality Solutions. In conjunction with this change, we have modified the methodology we have historically used to allocate shared corporate technology costs. Each segment now reflects a portion of our shared corporate costs that historically were not allocated to a business unit, based on relative consumption of shared technology infrastructure costs and defined revenue metrics. These changes have no impact on our consolidated results of operations, but result in a decrease of individual segment profitability only. Our CODM utilizes Adjusted Gross Profit, Adjusted Operating Income and Adjusted EBITDA as the measures of profitability to evaluate performance of our segments and allocate resources. Corporate includes a technology organization that provides development and support activities to our segments. The majority of costs associated with our technology organization are allocated to the segments primarily based on the segments' usage of resources. Benefit expenses, facility costs and depreciation expense on the corporate headquarters building are allocated to the segments based on headcount. Unallocated corporate costs include certain shared expenses such as accounting, finance, human resources, legal, corporate systems, amortization of acquired intangible assets, impairment and related charges, stock-based compensation, restructuring charges, legal reserves 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 fees charged by Travel Network to Hospitality Solutions for airline trips booked through our GDS. 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. The performance of our segments is evaluated primarily on Adjusted Gross Profit, Adjusted Operating Income and Adjusted EBITDA which are not recognized terms under GAAP. Our uses of Adjusted Gross Profit, Adjusted Operating Income 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 Gross Profit as operating income adjusted for selling, general and administrative expenses, impairment and related charges, the cost of revenue portion of depreciation and amortization, restructuring and other costs, amortization of upfront incentive compensation, and stock-based compensation included in cost of revenue. We define Adjusted Operating Income as operating income adjusted for joint venture equity income, impairment and related charges, acquisition-related amortization, restructuring and other costs, acquisition-related costs, litigation costs, net, and stock-based compensation. We define Adjusted EBITDA as income from continuing operations adjusted for impairment and related charges, 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, acquisition-related costs, litigation costs, net, stock-based compensation and provision for income taxes. Segment information for the years ended December 31, 2019, 2018 and 2017 is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Revenue Travel Network $ 2,882,662 $ 2,806,194 $ 2,550,470 Airline Solutions 840,338 822,747 816,008 Hospitality Solutions 292,880 273,079 258,352 Eliminations (40,892) (35,064) (26,346) Total revenue $ 3,974,988 $ 3,866,956 $ 3,598,484 Adjusted Gross Profit (Loss) (a) Travel Network $ 1,016,695 $ 1,098,052 $ 1,071,249 Airline Solutions 326,610 355,079 366,255 Hospitality Solutions 64,842 83,333 88,477 Corporate (16,341) (15,056) (25,795) Total $ 1,391,806 $ 1,521,408 $ 1,500,186 Adjusted Operating Income (Loss) (b) Travel Network $ 648,838 $ 755,811 $ 746,625 Airline Solutions 80,428 111,146 137,932 Hospitality Solutions (21,632) 12,881 9,670 Corporate (194,226) (178,406) (188,078) Total $ 513,408 $ 701,432 $ 706,149 Adjusted EBITDA (c) Travel Network $ 852,856 $ 951,709 $ 923,615 Airline Solutions 251,442 293,577 296,437 Hospitality Solutions 31,466 52,824 42,784 Total segments 1,135,764 1,298,110 1,262,836 Corporate (189,404) (173,720) (184,265) Total $ 946,360 $ 1,124,390 $ 1,078,571 Depreciation and amortization Travel Network $ 121,083 $ 118,276 $ 109,579 Airline Solutions 171,014 182,431 158,505 Hospitality Solutions 53,098 39,943 33,114 Total segments 345,195 340,650 301,198 Corporate 69,426 72,694 99,673 Total $ 414,621 $ 413,344 $ 400,871 Capital Expenditures Travel Network $ 15,580 $ 64,943 $ 90,881 Airline Solutions 37,062 98,374 116,948 Hospitality Solutions 11,324 39,160 43,443 Total segments 63,966 202,477 251,272 Corporate 51,200 81,463 65,165 Total $ 115,166 $ 283,940 $ 316,437 (a) The following table sets forth the reconciliation of Adjusted Gross Profit to operating income in our statement of operations (in thousands): Year Ended December 31, 2019 2018 2017 Adjusted Gross Profit $ 1,391,806 $ 1,521,408 $ 1,500,186 Less adjustments: Selling, general and administrative 576,568 513,526 510,075 Impairment and related charges (7) — — 81,112 Cost of revenue adjustments: Depreciation and amortization (1) 340,889 341,653 317,812 Amortization of upfront incentive consideration (2) 82,935 77,622 67,411 Restructuring and other costs (4) — — 12,604 Stock-based compensation 27,997 26,591 17,732 Operating income $ 363,417 $ 562,016 $ 493,440 (b) The following table sets forth the reconciliation of Adjusted Operating Income to operating income in our statement of operations (in thousands): Year Ended December 31, 2019 2018 2017 Adjusted Operating income $ 513,408 $ 701,432 $ 706,149 Less adjustments: Joint venture equity income 2,044 2,556 2,580 Impairment and related charges (7) — — 81,112 Acquisition-related amortization (1c) 64,604 68,008 95,860 Restructuring and other costs (4) — — 23,975 Acquisition-related costs (5) 41,037 3,266 — Litigation costs, net (6) (24,579) 8,323 (35,507) Stock-based compensation 66,885 57,263 44,689 Operating income $ 363,417 $ 562,016 $ 493,440 (c) The following table sets forth the reconciliation of Adjusted EBITDA to income from continuing operations in our statement of operations (in thousands): Year Ended December 31, 2019 2018 2017 Adjusted EBITDA $ 946,360 $ 1,124,390 $ 1,078,571 Less adjustments: Impairment and related charges (7) — — 81,112 Depreciation and amortization of property and equipment (1a) 310,573 303,612 264,880 Amortization of capitalized implementation costs (1b) 39,444 41,724 40,131 Acquisition-related amortization (1c) 64,604 68,008 95,860 Amortization of upfront incentive consideration (2) 82,935 77,622 67,411 Interest expense, net 156,391 157,017 153,925 Loss on extinguishment of debt — 633 1,012 Other, net (3) 9,432 8,509 (36,530) Restructuring and other costs (4) — — 23,975 Acquisition-related costs (5) 41,037 3,266 — Litigation costs, net (6) (24,579) 8,323 (35,507) Stock-based compensation 66,885 57,263 44,689 Provision for income taxes (8) 35,326 57,492 128,037 Income from continuing operations $ 164,312 $ 340,921 $ 249,576 ________________________ (1) Depreciation and amortization expenses (see Note 1. Summary of Business and Significant Accounting Policies for associated asset lives): (a) Depreciation and amortization of property and equipment includes software developed for internal use as well as amortization of contract acquisition costs. (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. (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 ten (3) In 2019, Other, net primarily includes 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. In 2018, we recognized an expense of $5 million related to our liability under the TRA offset by a gain of $8 million on the sale of an investment. In 2017, we recognized a benefit of $60 million due to a reduction to our liability under the TRA primarily due to a provisional adjustment resulting from the enactment of TCJA which reduced the U.S. corporate income tax rate (see Note 7. Income Taxes), offset by a loss of $15 million related to debt modification costs associated with a debt refinancing. In addition, all periods presented include 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. We recorded $25 million in charges associated with an announced action to reduce our workforce in 2017. These reductions aligned our operations with business needs and implemented an ongoing cost and organizational structure consistent with our expected growth needs and opportunities. (5) Acquisition-related costs represent fees and expenses incurred associated with the 2019 acquisition of Radixx and the 2018 agreement to acquire Farelogix, which is anticipated to close in 2020. See Note 3. Acquisitions. (6) Litigation costs, net represent charges associated with antitrust and other foreign non-income tax contingency matters. In 2019, we recognized the reversal of our previously accrued loss related to US Airways legal matter for $32 million. In 2018, we recorded non-income tax expense of $5 million for tax, penalties and interest associated with certain non-income tax claims for historical periods regarding permanent establishment in a foreign jurisdiction. In 2017, we recorded a $43 million reimbursement, net of accrued legal and related expenses, from a settlement with our insurance carriers with respect to the American Airlines litigation. See Note 16. Commitments and Contingencies. (7) Impairment and related charges represents an $81 million impairment charge recorded in 2017 associated with net capitalized contract costs related to an Airline Solutions' customer based on our analysis of the recoverability of such amounts. See Note 4. Impairment and Related Charges for additional information. (8) In 2018, the provision for income taxes includes a benefit of $27 million related to the enactment of the TCJA for deferred taxes and foreign tax effects. In 2017, provision for income taxes includes a provisional impact of $47 million recognized as a result of the enactment of the TCJA in December 2017. See Note 7. Income Taxes. A significant portion of our revenue is generated through transaction-based fees that we charge to our customers. For Travel Network, this fee is in the form of a transaction fee for bookings on our GDS; for Airline Solutions and Hospitality Solutions, this fee is a recurring usage-based fee for the use of our SaaS and hosted systems, as well as implementation fees and professional service fees. Transaction-based revenue accounted for approximately 94%, 95% and 95% of our Travel Network revenue for each of the years ended December 31, 2019, 2018 and 2017. Transaction-based revenue accounted for approximately 80%, 81% and 74% for the years ended December 31, 2019, 2018 and 2017, respectively, of our Airline Solutions revenue. Transaction-based revenue accounted for approximately 80%, 81% and 83% for the years ended December 31, 2019, 2018 and 2017, respectively, of our Hospitality Solutions revenue. All joint venture equity income relates to Travel Network. Our revenues and long-lived assets, excluding goodwill and intangible assets, by geographic region are summarized below. Revenue of our Travel Network business is attributed to countries based on the location of the travel supplier. For Airline Solutions and Hospitality Solutions, revenue is attributed to countries based on the location of the customer. The majority of our revenues and long-lived assets are derived from the United States, Europe, and Asia-Pacific ("APAC") as follows (in thousands): Year Ended December 31, 2019 2018 2017 Revenue: United States (1) $ 1,306,450 $ 1,346,895 $ 1,340,893 Europe 913,245 928,533 777,406 APAC 822,679 820,711 715,740 All Other 932,614 770,817 764,445 Total $ 3,974,988 $ 3,866,956 $ 3,598,484 ________________________ (1) United States includes revenue related to Canada and Mexico in 2018 and 2017 that is reflected in 'All Other' in 2019. As of December 31, 2019 2018 Long-lived assets United States (1) $ 622,034 $ 773,739 Europe 1,594 3,735 APAC 11,521 7,254 All Other 6,573 5,644 Total $ 641,722 $ 790,372 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) A summary of our quarterly financial results for the years ended December 31, 2019 and 2018 is presented below (in thousands): Year Ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 1,049,361 $ 1,000,006 $ 984,199 $ 941,422 Operating income 110,407 81,913 113,460 57,637 Income from continuing operations 59,214 28,094 65,180 11,824 (Loss) income from discontinued operations, net of tax (1,452) 1,350 (596) (1,068) Net income 57,762 29,444 64,584 10,756 Net income attributable to common stockholders 56,850 27,838 63,813 10,091 Net income per share attributable to common stockholders: Basic $ 0.20 $ 0.10 $ 0.24 $ 0.04 Diluted $ 0.20 $ 0.10 $ 0.23 $ 0.04 Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 988,369 $ 984,376 $ 970,283 $ 923,928 Operating income 165,401 138,833 136,763 121,019 Income from continuing operations 90,449 92,565 70,879 87,028 (Loss) income from discontinued operations, net of tax (1,207) 760 3,664 (1,478) Net income 89,242 93,325 74,543 85,550 Net income attributable to common stockholders 87,880 92,246 73,005 84,400 Net income per share attributable to common stockholders: Basic $ 0.32 $ 0.33 $ 0.26 $ 0.31 Diluted $ 0.32 $ 0.33 $ 0.26 $ 0.30 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS DECEMBER 31, 2019, 2018 AND 2017 (In millions) Balance at Beginning Charged to Expense or Other Accounts Write-offs and Other Adjustments Balance at End of Period Allowance for Doubtful Accounts Year Ended December 31, 2019 $ 45.3 $ 20.6 $ (8.2) $ 57.7 Year ended December 31, 2018 $ 43.0 $ 7.7 $ (5.4) $ 45.3 Year ended December 31, 2017 $ 37.1 $ 9.5 $ (3.6) $ 43.0 Valuation Allowance for Deferred Tax Assets Year Ended December 31, 2019 $ 59.3 $ — $ (21.0) $ 38.3 Year ended December 31, 2018 $ 59.0 $ 4.7 $ (4.4) $ 59.3 Year ended December 31, 2017 $ 74.5 $ (8.8) $ (6.7) $ 59.0 Reserve for Value-Added Tax Receivables Year Ended December 31, 2019 $ — $ — $ — $ — Year ended December 31, 2018 $ — $ — $ — $ — Year ended December 31, 2017 $ 0.3 $ — $ (0.3) $ — |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 majority-owned subsidiaries and companies over which we exercise control through majority voting rights. No entities are 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. The preparation of these annual 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, estimation of future cancellations of bookings processed through the Sabre global distribution system ("GDS"), revenue recognition for Software-as-a-Service ("SaaS") arrangements, 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, the evaluation of the recoverability of capitalized implementation costs, assumptions utilized to evaluate the recoverability of deferred customer advance and discounts, estimation of loss contingencies, and evaluation of uncertainties surrounding the calculation of our tax assets and liabilities. In the first quarter of 2018, we adopted the comprehensive update to revenue recognition guidance Revenue from Contracts with Customers ("ASC 606"), which replaced the previous standard ("ASC 605"), using the modified retrospective approach, applied to contracts that were not completed as of the adoption date. Our 2018 results are reported under ASC 606, while results prior to 2018 are reported under ASC 605. Under ASC 606, revenue is recognized when a company transfers the promised goods or services to customers in an amount that reflects the consideration that is expected to be received for those goods and services. See Note 2. Revenue from Contracts with Customers. |
Revenue Recognition | Revenue Recognition Travel Network and Hospitality Solutions’ revenue recognition is primarily driven by GDS and central reservation system transactions, respectively. Airline Solutions’ revenue recognition is primarily driven by passengers boarded or other variable metrics relevant to the software service provided. Timing of revenue recognition is primarily based on the consistent provision of services in a stand-ready series SaaS environment and the amount of revenue recognized varies with the volume of transactions processed. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under ASC 606. The transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Most of our contracts in the Travel Network and Hospitality Solutions businesses have a single performance obligation. In the Airline Solutions business, many of our contracts may have multiple performance obligations, which generally include software and product solutions through SaaS and hosted delivery, and other service fees. In addition, at times we enter into agreements with customers to provide access to Travel Network’s GDS and, at or near the same time, enter into a separate agreement to provide Airline Solutions' software solutions through SaaS and hosted delivery, resulting in multiple performance obligations within a combined agreement. Our significant product and services and methods of recognition are as follows: Stand-ready series revenue recognition Travel Network —Travel Network's service offering is a GDS or GDS services linking and engaging transactions between travel agents (those that seek travel on behalf of travelers) and travel suppliers (such as airlines, hotels, car rental companies and cruise lines). Revenue is generated from contracts with the travel suppliers as each booking is made or transaction occurs and represents a stand-ready performance obligation where our systems perform the same service each day for the customer, based on the customer’s level of usage. Variability in the amounts billed to the customer and revenue recognized coincides with the customer’s level of usage or value received by the customer. Travel Network's revenue for air transactions is recognized at the time of booking of the reservation, net of estimated future cancellations. Travel Network's revenue for car rental, hotel transactions and other travel providers is recognized at the time the reservation is used by the customer. Airline Solutions and Hospitality Solutions —Airline Solutions and Hospitality Solutions provide technology solutions and other professional services to airlines, hotels and other business consumers in the travel industry. The technology solutions are primarily provided in a SaaS or hosted environment. Customers are normally charged an upfront solutions fee and a recurring usage-based fee for the use of the software, which represents a stand-ready performance obligation where our systems perform the same service each day for the customer, based on the customer’s level of usage. Upfront solutions fees are recognized primarily on a straight-line basis over the relevant contract term, upon cut-over of the primary SaaS solution. Variability in the usage-based fee that does not align with the value provided to the customer can result in a difference between billings to the customer and the timing of contract performance and revenue recognition, which may result in the recognition of a contract asset. This can result in a requirement to forecast expected usage-based fees and volumes over the contract term in order to determine the rate for revenue recognition. This variable consideration is constrained if there is an inability to reliably forecast this revenue. Contract Assets and Deferred Customer Advances and Discounts Deferred customer advances and discounts are amortized against revenue in future periods as the related revenue is earned. Our contract assets include revenue recognized for services already transferred to a customer, for which the fulfillment of another contractual performance obligation is required, before we have the unconditional right to bill and collect based on contract terms. Contract assets are reviewed for recoverability on a periodic basis based on a review of impairment indicators. Deferred customer advances and discounts are reviewed for recoverability based on future contracted revenues and estimated direct costs of the contract when a significant event occurs that could impact the recoverability of the assets, such as a significant contract modification or early renewal of contract terms. For the year ended December 31, 2019, we did not impair any of these assets as a result of the related contract becoming uncollectable, modified or canceled. See Note 4. Impairment and Related Charges regarding 2017 impairments. 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. Other revenue recognition patterns Airline Solutions also provides other services including development labor or professional consulting. These services can be sold separately or with other products and services, and Airline Solutions may bundle multiple technology solutions in one arrangement with these other services. Revenue from other services consisting of development services that represent minor configuration or professional consulting is generally recognized over the period the services are performed or upon completed delivery. Airline Solutions also directly licenses certain software to its customers where the customer obtains control of the license. Revenue from software license fees is recognized when the customer gains control of the software enabling them to directly use the software and obtain substantially all of the remaining benefits. Fees for ongoing software maintenance are recognized ratably over the life of the contract. Under these arrangements, often we are entitled to minimum fees which are collected over the term of the agreement, while the revenue from the license is recognized at the point when the customer gains control, which results in current and long-term unbilled receivables for these arrangements. Variability in the amounts billed to the customer and revenue recognized coincides with the customer’s level of usage with the exception of upfront solution fees, non-usage based variable consideration, license and maintenance agreements and other services including development labor and professional consulting. 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 across our businesses which can impact timing of revenue recognition. For contracts with multiple performance obligations, we account for separate performance obligations on an individual basis with value assigned to each performance obligation based on our best estimate of relative standalone selling price ("SSP"). Judgment is required to determine the SSP for each distinct performance obligation. SSP is assessed annually using a historical analysis of contracts with customers executed in the most recently completed calendar year to determine the range of selling prices applicable to a distinct good or service. In making these judgments, we analyze various factors, including discounting practices, price lists, contract prices, value differentiators, customer segmentation and overall market and economic conditions. Based on these results, the estimated SSP is set for each distinct product or service delivered to customers. As our market strategies evolve, we may modify pricing practices in the future which could result in changes to SSP. |
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 |
Advertising Costs | Advertising CostsAdvertising costs are expensed as incurred. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash 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. |
Allowance for Doubtful Accounts and Concentration of Credit Risk | Allowance for Doubtful Accounts and Concentration of Credit Risk 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, such as bankruptcy filings or 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 historical experience and the length of time the receivables are past due. We maintained an allowance for doubtful accounts of approximately $58 million and $45 million at December 31, 2019 and 2018, respectively. See “—Recent Accounting Pronouncements" below for information on recently issued accounting guidance regarding the allowance for doubtful accounts. 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. Our other accounts receivable are generally due from other participants in the travel and transportation industry. As of December 31, 2019 and 2018, approximately $375 million, or 82%, and $334 million, or 81%, respectively, of our trade accounts receivable were attributable to services provided to the commercial air travel industry and travel agency customers. Substantially all of our accounts receivable represents trade balances. We generally do not require security or collateral from our customers as a condition of sale. |
Derivative Financial Instruments | Derivative Financial Instruments We recognize all 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”). 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. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization, 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 5 years We capitalize certain costs related to our infrastructure, software applications and reservation systems under authoritative guidance on software developed for internal use. 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 our GDS and SaaS-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. See Note 6. Balance Sheet Components, for amounts capitalized as property and equipment in our consolidated balance sheets. Depreciation and amortization of property and equipment totaled $295 million, $288 million and $256 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization of software developed for internal use, included in depreciation and amortization, totaled $241 million, $236 million and $203 million for the years ended December 31, 2019, 2018 and 2017, respectively. During the years ended December 31, 2019, 2018 and 2017, we capitalized $89 million, $252 million, and $251 million, respectively, related to software developed for internal use. We also evaluate the useful lives of these assets on an annual basis and test 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. We did not record any property and equipment impairment charges for the years ended December 31, 2019, 2018 and 2017. |
Leases | Leases We lease certain facilities under long term operating leases. We determine if an arrangement is a lease at inception. Operating lease assets are included in operating lease right-of-use (“ROU”) assets within other noncurrent assets and operating lease liabilities are included in other current liabilities and other noncurrent liabilities in our consolidated balance sheets. Finance lease assets are included in property and equipment with associated liabilities included in current portion of debt and long-term debt in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our internal borrowing rate for leases with a lease term of less than or equal to five years. For leases with a lease term greater than five years, we use our incremental borrowing rate based on the estimated rate of interest for corporate bond borrowings over a similar term of the lease payments. Certain of our lease agreements contain renewal options, early termination options and/or payment escalations based on fixed annual increases, local consumer price index changes or market rental reviews. We recognize rent expense with fixed rate increases and/or fixed rent reductions on a straight line basis over the term of the lease. |
Business Combinations | Business Combinations Business combinations are accounted for under the acquisition method of accounting. Under this method, the assets acquired and liabilities assumed are recognized at their respective fair values as of the date of acquisition. The excess, if any, of the acquisition price over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. For significant acquisitions, we utilize third-party appraisal firms to assist us in determining the fair values for certain assets acquired and liabilities assumed. The measurement of these fair values requires us to make significant estimates and assumptions which are inherently uncertain. Adjustments to the fair values of assets acquired and liabilities assumed are made until we obtain all relevant information regarding the facts and circumstances that existed as of the acquisition date (the “measurement period”), not to exceed one year from the date of the acquisition. We recognize measurement-period adjustments in the period in which we determine the amounts, including the effect on earnings of any amounts we would have recorded in previous periods if the accounting had been completed at the acquisition date. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired in business combinations. Goodwill is not amortized but is reviewed for impairment on an annual basis or more frequently if events and circumstances indicate the carrying amount may not be recoverable. Definite-lived intangible assets are amortized on a straight-line basis and assigned useful economic lives of two We perform our annual assessment of possible impairment of goodwill as of October 1 of each year. 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 quantitative assessment described below. If it is determined through the evaluation of events or circumstances that the carrying value may not be recoverable, 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 fair value through an adjustment to the goodwill balance, resulting in an impairment charge. We have three reporting units associated with our continuing operations: Travel Network, Airline Solutions and Hospitality Solutions. We did not record any goodwill impairment charges for the years ended December 31, 2019 , 2018 and 2017. See Note 5. Goodwill and Intangible Assets, for additional information. 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, the intangible assets are measured at fair value and an impairment charge is recorded based on the excess of the carrying value of the assets to its fair value. We did not record material intangible asset impairment charges for the years ended December 31, 2019, 2018 and 2017. See Note 5. Goodwill and Intangible Assets, for additional information. |
Equity Method Investments | Equity Method InvestmentsWe utilize the equity method to account for our interests in joint ventures that we do not control but over which we exert significant influence. We periodically evaluate equity and debt investments in entities accounted for 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. We own voting interests in various national marketing companies ranging from 20% to 49%, a voting interest of 40% in ESS Elektroniczne Systemy Spzedazy Sp. zo.o, and a voting interest of 20% in Asiana Sabre, Inc. The carrying value of these equity method investments in joint ventures amounts to $24 million as of December 31, 2019 and 2018. |
Contract Acquisition Costs and Capitalized Implementation Costs | Contract Acquisition Costs and Capitalized Implementation Costs We incur contract acquisition costs related to new contracts with our customers in the form of sales commissions based on estimated contract value for our Airline Solutions and Hospitality Solutions businesses. These costs are capitalized and reviewed for impairment on an annual basis. We generally amortize these costs, and those for renewals, over the average contract term for those businesses, excluding commissions on contracts with a term of one year or less, which are generally expensed in the period earned and recorded within selling, general and administrative expenses. We incur upfront costs to implement new customer contracts under our SaaS 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 implementation costs are amortized on a straight-line basis over the related contract term, ranging from three |
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 enacted 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. We use significant judgment in determining whether a tax position's technical merits are more likely than not to be sustained and in measuring the amount of tax benefit that qualifies for recognition. For matters that are determined will more likely than not be sustained, we measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We recognize penalties and interest accrued related to income taxes as a component of the provision for income taxes. As the matters challenged by the taxing authorities are typically complex and open to subjective interpretation, their ultimate outcome may differ from the amounts recognized. The Tax Cuts and Jobs Act (the “TCJA”), which was enacted on December 22, 2017, imposes a tax on global low-taxed intangible income (“GILTI”) in tax years beginning after December 31, 2017. GILTI provisions are applicable to certain profits of a controlled foreign corporation that exceed the U.S. stockholder's deemed “routine” investment return under the TCJA and results in income includable in the return of U.S. shareholders. We recognize liabilities, if any, related to this provision of the TCJA in the year in which the liability arises and not as a deferred tax liability. |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans in our consolidated balance sheets. The funded status is the difference between the fair value of plan assets and the benefit obligation as of the balance sheet date. The fair value of plan assets represents the cumulative contributions made to fund the pension and other postretirement benefit plans which are invested primarily in domestic and foreign equities and fixed income securities. The benefit obligation of our pension and other postretirement benefit plans are actuarially determined using certain assumptions approved by us. The benefit obligation is adjusted annually in the fourth quarter to reflect actuarial changes and may also be adjusted upon the adoption of plan amendments. These adjustments are initially recorded in accumulated other comprehensive income (loss) and are subsequently amortized over the life expectancy of the plan participants as a component of net periodic benefit costs. |
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 recognize equity-based compensation expense net of any actual forfeitures. We measure the grant date fair value of stock option awards as calculated by the Black-Scholes option-pricing model which requires certain subjective assumptions, including the expected term of the option, the expected volatility of our common stock, risk-free interest rates and expected dividend yield. The expected term is estimated by using the “simplified method” which is based on the midpoint between the vesting date and the expiration of the contractual term. We utilized the simplified method due to the lack of sufficient historical experience under our current grant terms. The expected volatility is based on the historical volatility of our stock price. The expected risk-free interest rates are based on the yields of U.S. Treasury securities with maturities appropriate for the expected term of the stock options. The expected dividend yield was based on the calculated yield on our common stock at the time of grant assuming annual dividends totaling $0.56 per share for awards granted in 2019. |
Foreign Currency | Foreign CurrencyWe remeasure foreign currency transactions into the relevant functional currency and record the foreign currency transaction gains or losses as a component of other, net in our consolidated statements of operations. We translate the financial statements of our non-U.S. dollar functional currency foreign subsidiaries into U.S. dollars in consolidation and record the translation gains or losses as a component of other comprehensive income (loss). Translation gains or losses of foreign subsidiaries related to divested businesses are reclassified into earnings as a component of other, net in our consolidated statements of operations once the liquidation of the respective foreign subsidiaries is substantially complete. |
Adoption of New Accounting Standard/Recent Accounting Pronouncements | Adoption of New Accounting Standards In July 2019, the Financial Accounting Standards Board ("FASB") issued updated guidance that clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations, thereby eliminating certain redundancies and allowing for easier application of the codification. This standard is effective upon issuance and did not have a material impact on our consolidated financial statements. In October 2018, the FASB issued updated guidance that permits use of the Overnight Index Swap ("OIS") rate based on the Secured Overnight Financing Rate ("SOFR") as a U.S. benchmark interest rate for hedge accounting purposes in addition to the Direct Treasury obligations of the U.S. government, the London Interbank Offered Rate ("LIBOR") swap rate, the OIS rate based on the Federal Funds Effective Rate, and the Securities Industry and Financial Markets Association Municipal Swap Rate. We adopted this standard in the first quarter of 2019, which did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued updated guidance requiring organizations that lease assets—referred to as "lessees"—to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases, when the lease has a term of more than 12 months. The updated standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. In the first quarter of 2019, we adopted the new standard using the modified retrospective approach and elected the package of practical expedients and the hindsight practical expedient. See Note 11. Leases for more information on the impacts from adoption and ongoing considerations. Recent Accounting Pronouncements In December 2019, the FASB issued updated guidance which simplifies the accounting for income taxes, eliminates certain exceptions within existing income tax guidance , and clarifies certain aspects of the current guidance to promote consistency among reporting entities. The updated standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We do not expect the adoption of this standard will have a material impact to our consolidated financial statements. In October 2018, the FASB issued updated guidance that eliminates the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest and instead requires entities to consider these indirect interests on a proportional basis. The updated standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. We do not expect the adoption of this standard will have a material impact to our consolidated financial statements. In August 2018, the FASB issued updated guidance on customer's accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. Under this updated standard, a customer in a cloud-computing arrangement that is a service contract is required to follow guidance on software developed for internal use to determine which implementation costs to capitalize as assets or expense as incurred. This standard aligns the accounting for implementation costs for hosting arrangements, regardless of whether they convey a license to the hosted software. The standard requires that capitalized implementation costs related to a hosting arrangement that is a service contract be amortized over the term of the hosting arrangement, beginning when the component of the hosting arrangement is ready for its intended use, similar to requirements in guidance on software developed for internal use. In addition, costs incurred during the preliminary project and post-implementation phases are expensed as they are incurred. The updated standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. We do not expect the adoption of this standard will have a material impact to our consolidated financial statements. In June 2016, the FASB issued updated guidance for the measurement of credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. Under this updated standard, the current "incurred loss" approach is replaced with an "expected loss" model for instruments measured at amortized cost. For available-for-sale debt securities, allowances for losses will now be required rather than reducing the instruments carrying value. The updated standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. We anticipate that the impacts described above will result in a net increase of approximately $13 million to $23 million in our opening retained deficit as of January 1, 2020 with a corresponding decrease in accounts receivable, net and other in-scope assets. Implications to tax-related accounts are not included in these estimated amounts. Our assessment of the impact of this standard is ongoing and subject to finalization. We are continuing to evaluate the impacts of the new guidance to our results of operations, current accounting policies, processes, controls, systems and financial statement disclosures. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
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 5 years Property and equipment, net consists of the following (in thousands): December 31, 2019 2018 Buildings and leasehold improvements $ 163,881 $ 156,357 Furniture, fixtures and equipment 38,878 38,049 Computer equipment 397,454 349,454 Software developed for internal use 1,857,353 1,771,306 Property and equipment 2,457,566 2,315,166 Accumulated depreciation and amortization (1,815,844) (1,524,794) Property and equipment, net $ 641,722 $ 790,372 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table presents our assets and liabilities with customers as of December 31, 2019 and December 31, 2018 (in thousands): Account Consolidated Balance Sheet Location December 31, 2019 December 31, 2018 Contract assets and customer advances and discounts (1) Prepaid expenses and other current assets / other assets, net $ 105,499 $ 79,268 Trade and unbilled receivables, net Accounts receivable, net 539,806 501,467 Long-term trade unbilled receivables, net Other assets, net 38,250 50,467 Contract liabilities Deferred revenues / other noncurrent liabilities 167,832 165,858 _______________________________ (1) Includes contract assets of $6 million and $4 million for December 31, 2019 and December 31, 2018, respectively. |
Disaggregation of Revenue | The following table presents our revenues disaggregated by business (in thousands): Year Ended December 31, 2019 December 31, 2018 Air $ 2,338,602 $ 2,284,419 Lodging, Ground and Sea 370,652 350,152 Other 173,408 171,623 Total Travel Network 2,882,662 2,806,194 SabreSonic Passenger Reservation System 506,579 501,085 Commercial and Operations Solutions (1) 328,485 312,751 Other 5,274 8,911 Total Airline Solutions 840,338 822,747 SynXis Software and Services 257,612 240,583 Other 35,268 32,496 Total Hospitality Solutions 292,880 273,079 Eliminations (40,892) (35,064) Total Sabre Revenue $ 3,974,988 $ 3,866,956 _______________________________ (1) Includes license fee revenue recognized upon delivery to the customer of $34 million and $27 million for the years ended December 31, 2019 and December 31, 2018, respectively. |
Capitalized Contract Costs | Year Ended December 31, 2019 December 31, 2018 Contract acquisition costs: Beginning balance $ 21,298 $ 19,353 Additions 9,378 7,924 Amortization (7,081) (6,404) Other — 425 Ending balance $ 23,595 $ 21,298 Capitalized implementation costs: Beginning balance $ 189,448 $ 194,501 Additions 28,588 39,168 Amortization (39,444) (37,904) Impairment (2,405) (4,013) Other (219) (2,304) Ending balance $ 175,968 $ 189,448 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Assets Acquired and Liabilities Assumed | A summary of the acquisition price and estimated fair values of assets acquired and liabilities assumed as of the date of acquisition is as follows (in thousands): Cash and cash equivalents $ 3,348 Accounts receivable 2,587 Other current assets 244 Goodwill 82,402 Intangible assets: Customer relationships 13,600 Developed technology 10,800 Trade name 1,400 Property and equipment, net 2,142 Deferred tax assets 2,968 Other long term assets, net 2,641 Current liabilities (7,071) Deferred tax liabilities (1,583) Other noncurrent liabilities (2,668) Total acquisition price $ 110,810 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill during the years ended December 31, 2019 and 2018 are as follows (in thousands): Travel Network Airline Solutions Hospitality Solutions Total Goodwill Balance as of December 31, 2017 $ 2,104,822 $ 290,985 $ 159,180 $ 2,554,987 Adjustments (1) (33) 378 (2,963) (2,618) Balance as of December 31, 2018 2,104,789 291,363 156,217 2,552,369 Acquired — 82,402 — 82,402 Adjustments (1) (7) (107) (1,406) (1,520) Balance as of December 31, 2019 $ 2,104,782 $ 373,658 $ 154,811 $ 2,633,251 ________________________ |
Schedule of Amortization of Intangible Assets | The following table presents our intangible assets as of December 31, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired customer relationships $ 1,046,382 $ (735,367) $ 311,015 $ 1,033,555 $ (709,824) $ 323,731 Trademarks and brand names 333,638 (147,735) 185,903 332,239 (137,009) 195,230 Reacquired rights 113,500 (73,124) 40,376 113,500 (56,910) 56,590 Purchased technology 437,288 (409,204) 28,084 426,488 (400,750) 25,738 Acquired contracts, supplier and distributor agreements 37,599 (29,324) 8,275 37,600 (25,867) 11,733 Non-compete agreements 14,686 (14,686) — 14,686 (14,460) 226 Total intangible assets $ 1,983,093 $ (1,409,440) $ 573,653 $ 1,958,068 $ (1,344,820) $ 613,248 |
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): 2020 $ 65,915 2021 64,337 2022 50,736 2023 37,030 2024 58,395 2025 and thereafter 297,240 Total $ 573,653 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2019 2018 Prepaid Expenses $ 77,326 $ 80,049 Value added tax receivable 39,381 57,486 Other 22,504 32,708 Prepaid expenses and other current assets $ 139,211 $ 170,243 |
Components of 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 5 years Property and equipment, net consists of the following (in thousands): December 31, 2019 2018 Buildings and leasehold improvements $ 163,881 $ 156,357 Furniture, fixtures and equipment 38,878 38,049 Computer equipment 397,454 349,454 Software developed for internal use 1,857,353 1,771,306 Property and equipment 2,457,566 2,315,166 Accumulated depreciation and amortization (1,815,844) (1,524,794) Property and equipment, net $ 641,722 $ 790,372 |
Schedule of Other Assets | Other assets, net consist of the following (in thousands): December 31, 2019 2018 Capitalized implementation costs, net $ 175,966 $ 189,447 Deferred upfront incentive consideration 151,606 162,893 Long-term contract assets and customer advances and discounts (1) 105,461 60,075 Right-of-Use asset (2) 64,191 — Long-term trade unbilled receivables (1) 38,250 50,467 Other 134,631 147,789 Other assets, net $ 670,105 $ 610,671 ________________________________ (1) Refer to Note 2. Revenue from Contracts with Customers for additional information. (2) In the first quarter of 2019, we adopted new lease accounting guidance on a modified retrospective basis in accordance with ASC 842, Leases. See Note 11. Leases, for additional information. Other Noncurrent Liabilities |
Schedule of Other Noncurrent Liabilities | Other noncurrent liabilities consist of the following (in thousands): December 31, 2019 2018 Pension and other postretirement benefits $ 127,837 $ 118,919 Deferred revenue 74,646 75,685 Lease liabilities (1) 49,970 — Tax receivable agreement — 72,939 Other 95,069 72,952 Other noncurrent liabilities $ 347,522 $ 340,495 ___________________________ (1) In the first quarter of 2019, we adopted new lease accounting guidance on a modified retrospective basis in accordance with ASC 842, Leases. See Note 11. Leases, for additional information. |
Accumulated Other Comprehensive Loss, Net of Related Deferred Income Taxes | Accumulated other comprehensive loss consists of the following (in thousands): December 31, 2019 2018 Defined benefit pension and other postretirement benefit plans $ (143,389) $ (139,430) Unrealized foreign currency translation gain 4,289 7,201 Unrealized loss on foreign currency forward contracts, interest rate swaps and available-for-sale securities (10,206) (495) Total accumulated other comprehensive loss, net of tax $ (149,306) $ (132,724) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Taxes From Continuing Operations | The components of pretax income from continuing operations, generally based on the jurisdiction of the legal entity, were as follows: Year Ended December 31, 2019 2018 2017 Components of pre-tax income: Domestic $ 30,960 $ 190,291 $ 199,685 Foreign 168,678 208,122 177,928 $ 199,638 $ 398,413 $ 377,613 |
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, 2019 2018 2017 Current portion: Federal $ 4,488 $ (49,518) $ 50,829 State and Local 3,781 4,168 2,388 Non U.S. 49,982 59,743 26,060 Total current 58,251 14,393 79,277 Deferred portion: Federal (14,215) 55,502 47,372 State and Local (1,692) (4,812) (6,178) Non U.S. (7,018) (7,591) 7,566 Total deferred (22,925) 43,099 48,760 Total provision for income taxes $ 35,326 $ 57,492 $ 128,037 |
Schedule of Reconciliation of Statutory Income Taxes and Effective Income Taxes Relating to Continuing Operation | 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, 2019 2018 2017 Income tax provision at statutory federal income tax rate $ 41,924 $ 83,667 $ 132,165 State income taxes, net of federal benefit 2,223 (42) (1,727) Impact of non U.S. taxing jurisdictions, net 14,078 5,591 (13,492) Impact of U.S. TCJA (1) — (26,730) 46,563 Employee stock based compensation 8,380 3,884 (2,849) Research tax credit (28,593) (9,818) (8,777) Tax receivable agreement (TRA) (2) (536) 1,019 (20,861) Other, net (2,150) (79) (2,985) Total provision for income taxes $ 35,326 $ 57,492 $ 128,037 ___________________________ (1) In 2018, amount includes SAB 118 adjustments for deferred taxes and foreign tax effects. In 2017, amount includes $48 million of transition tax expense, and the remainder is the net benefit on cumulative deferred taxes. (2) Amount includes adjustments to the TRA, which are not taxable. |
Summary of Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities are as follows: As of December 31, 2019 2018 Deferred tax assets: Accrued expenses $ 7,547 $ 8,638 Employee benefits other than pension 23,272 34,147 Lease liabilities 9,415 — Deferred revenue 30,715 22,351 Pension obligations 27,407 26,821 Tax loss carryforwards 54,556 70,340 Incentive consideration 6,722 9,456 Tax credit carryforwards 16,136 31,467 Suspended loss 14,635 14,474 Other 5,916 8,008 Total deferred tax assets 196,321 225,702 Deferred tax liabilities: Right of use assets (9,261) — Depreciation and amortization (7,059) (13,298) Software developed for internal use (66,918) (103,631) Intangible assets (120,528) (122,921) Unrealized gains and losses (18,778) (21,840) Non U.S. operations (13,789) (9,355) Investment in partnership (7,306) (6,794) Total deferred tax liabilities (243,639) (277,839) Valuation allowance (38,272) (59,294) Net deferred tax (liability) $ (85,590) $ (111,431) |
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, 2019 2018 2017 Balance at beginning of year $ 70,327 $ 74,388 $ 49,331 Additions for tax positions taken in the current year 5,149 4,450 5,279 Additions for tax positions of prior years 12,679 2,612 21,669 Additions for tax positions from acquisitions 1,294 — — Reductions for tax positions of prior years (19,611) (5,831) — Reductions for tax positions of expired statute of limitations (1,192) (3,143) (1,891) Settlements (4,001) (2,149) — Balance at end of year $ 64,645 $ 70,327 $ 74,388 |
Summary of Income Tax Examinations | The following table summarizes, by major tax jurisdiction, our tax years that remain subject to examination by taxing authorities: Tax Jurisdiction Years Subject to Examination United Kingdom 2013 - forward Singapore 2015 - forward Texas 2015 - forward Uruguay 2014 - forward U.S. Federal 2014 - forward |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table sets forth the face values of our outstanding debt as of December 31, 2019 and 2018 (in thousands): December 31, Rate Maturity 2019 2018 Senior secured credit facilities: Term Loan A L + 2.25% July 2022 $ 484,500 $ 527,250 Term Loan B L + 2.00% February 2024 1,843,427 1,862,237 Revolver, $400 million L + 2.00% July 2022 — — 5.375% senior secured notes due 2023 5.375% April 2023 530,000 530,000 5.25% senior secured notes due 2023 5.25% November 2023 500,000 500,000 Finance lease obligations 5,882 12,368 Face value of total debt outstanding 3,363,809 3,431,855 Less current portion of debt outstanding (81,614) (68,435) Face value of long-term debt outstanding $ 3,282,195 $ 3,363,420 |
Schedule of Debt Interest Rate Margin | Eurocurrency borrowings Base rate borrowings Applicable Margin (1)(2) Applicable Margin Term Loan A 2.25% 1.00% Term Loan B 2.00% 1.00% Revolver, $400 million 2.00% 1.00% _____________________________ (1) Applicable margins do not reflect potential step ups and downs of Term Loan A and Revolver, $400 million, which are determined by the Senior Secured Leverage Ratio. See below for additional information. (2) Term Loan A, Term Loan B, and Revolver, $400 million, are subject to a 0% floor. |
Schedule of Effective Interest Rates | Our effective interest rates on borrowings under the Amended and Restated Credit Agreement for the years ended December 31, 2019, 2018 and 2017, inclusive of amounts charged to interest expense, are as follows: Year Ended December 31, 2019 2018 2017 Including the impact of interest rate swaps 4.64 % 4.57 % 4.35 % Excluding the impact of interest rate swaps 4.63 % 4.36 % 4.03 % |
Aggregate Maturities of Long-Term Debt | As of December 31, 2019, aggregate maturities of our long-term debt were as follows (in thousands): Amount Years Ending December 31, 2020 $ 81,614 2021 75,870 2022 389,323 2023 1,048,817 2024 1,768,185 Thereafter — Total $ 3,363,809 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Unsettled Purchased Foreign Currency Forward Contracts | Outstanding Notional Amounts as of December 31, 2019 Buy Currency Sell Currency Foreign Amount USD Amount Average Contract Rate Polish Zloty US Dollar 265,000 68,971 0.2603 Indian Rupee US Dollar 4,485,000 61,708 0.0138 Singapore Dollar US Dollar 63,500 46,759 0.7364 British Pound Sterling US Dollar 18,400 24,109 1.3103 Australian Dollar US Dollar 16,500 11,521 0.6982 Swedish Krona US Dollar 38,100 4,106 0.1075 Outstanding Notional Amount as of December 31, 2018 Buy Currency Sell Currency Foreign Amount USD Amount Average Contract Rate Polish Zloty US Dollar 232,500 64,281 0.2765 Singapore Dollar US Dollar 59,800 44,504 0.7442 Indian Rupee US Dollar 2,880,000 39,956 0.0139 British Pound Sterling US Dollar 19,600 26,525 1.3533 Australian Dollar US Dollar 23,950 17,674 0.7379 Swedish Krona US Dollar 48,250 5,678 0.1177 Brazilian Real US Dollar 14,300 3,753 0.2615 |
Schedule of Outstanding and Matured Interest Rate Swaps | Interest rate swaps outstanding at December 31, 2019 and matured during the years ended December 31, 2019, 2018 and 2017 are as follows: Notional Amount Interest Rate Received Interest Rate Paid Effective Date Maturity Date Designated as Hedging Instrument $750 million 1 month LIBOR (2) 1.15% March 31, 2017 December 31, 2017 $750 million 1 month LIBOR (2) 1.65% December 29, 2017 December 31, 2018 $1,350 million 1 month LIBOR (2) 2.27% December 31, 2018 December 31, 2019 $1,200 million 1 month LIBOR (2) 2.19% December 31, 2019 December 31, 2020 $600 million 1 month LIBOR (2) 2.81% December 31, 2020 December 31, 2021 Not Designated as Hedging Instrument (1) $750 million 1 month LIBOR (3) 2.19% December 30, 2016 December 29, 2017 $750 million 1.18% 1 month LIBOR March 31, 2017 December 31, 2017 $750 million 1 month LIBOR (3) 2.61% December 29, 2017 December 31, 2018 $750 million 1.67% 1 month LIBOR December 29, 2017 December 31, 2018 _____________________ (1) Subject to a 1% floor. (2) Subject to a 0% floor. (3) As of February 22, 2017. |
Schedule of Estimated Fair Values of Derivatives Designated as Hedging Instruments | The estimated fair values of our derivatives designated as hedging instruments as of December 31, 2019 and 2018 are as follows (in thousands): Derivative Assets (Liabilities) Fair Value as of December 31, Derivatives Designated as Hedging Instruments Consolidated Balance Sheet Location 2019 2018 Foreign exchange contracts Prepaid expenses and other current assets $ 1,953 $ — Foreign exchange contracts Other accrued liabilities — (4,285) Interest rate swaps Prepaid expenses and other current assets — 3,674 Interest rate swaps Other assets, net — 295 Interest rate swaps Other accrued liabilities (7,020) — Interest rate swaps Other noncurrent liabilities (7,918) — Total $ (12,985) $ (316) |
Schedule of Effects of Derivative Instruments Net of Taxes on Other Comprehensive Income (Loss) | The effects of derivative instruments, net of taxes, on OCI for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands): Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion Year Ended December 31, Derivatives in Cash Flow Hedging Relationships 2019 2018 2017 Foreign exchange contracts $ (360) $ (8,250) $ 13,205 Interest rate swaps (14,857) 1,907 2,583 Total $ (15,217) $ (6,343) $ 15,788 Amount of Loss (Gain) Reclassified from Accumulated OCI into Income, Effective Portion Year Ended December 31, Derivatives in Cash Flow Hedging Relationships Income Statement Location 2019 2018 2017 Foreign exchange contracts Cost of revenue $ 5,351 $ (322) $ (3,001) Interest rate swaps Interest Expense, net 156 3,999 5,083 Total $ 5,507 $ 3,677 $ 2,082 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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, 2019 and 2018 (in thousands): Fair Value at Reporting Date Using December 31, 2019 Level 1 Level 2 Level 3 Derivatives: Foreign currency forward contracts $ 1,953 $ — $ 1,953 $ — Interest rate swap contracts (14,938) — (14,938) — Total $ (12,985) $ — $ (12,985) $ — Fair Value at Reporting Date Using December 31, 2018 Level 1 Level 2 Level 3 Derivatives: Foreign currency forward contracts $ (4,285) $ — $ (4,285) $ — Interest rate swap contracts 3,969 — 3,969 — Total $ (316) $ — $ (316) $ — |
Schedule of Fair Value and Carrying Value of Notes and Term Loans | The following table presents the fair value and carrying value of all our notes and term loans under our Amended and Restated Credit Agreement as of December 31, 2019 and 2018 (in thousands): Fair Value at December 31, Carrying Value (1) at December 31, Financial Instrument 2019 2018 2019 2018 Term Loan A $ 485,106 $ 520,000 $ 483,317 $ 525,514 Term Loan B 1,856,100 1,798,223 1,838,741 1,856,496 5.375 % Senior Secured Notes Due 2023 543,536 529,799 530,000 530,000 5.25% Senior Secured Notes Due 2023 514,670 495,248 500,000 500,000 _____________________ (1) Excludes net unamortized debt issuance costs. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The following table presents the components of lease expense (in thousands): Year Ended Operating lease cost $ 27,035 Finance lease cost: Amortization of right-of-use assets $ 7,073 Interest on lease liabilities 453 Total finance lease cost $ 7,526 The following table presents supplemental cash flow information related to leases (in thousands): Year Ended Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 28,374 Operating cash flows used in finance leases 453 Financing cash flows used in finance leases 6,731 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 27,116 Finance leases 397 |
Supplemental Balance Sheet Information | The following table presents supplemental balance sheet information related to leases (in thousands): Year Ended 12/31/2019 Operating Leases Operating lease right-of-use assets $ 64,191 Other accrued liabilities 21,932 Other noncurrent liabilities 49,970 Total operating lease liabilities $ 71,902 Finance Leases Property and equipment 35,349 Accumulated depreciation (27,163) Property and equipment, net $ 8,186 Other accrued liabilities 5,804 Other noncurrent liabilities 78 Total finance lease liabilities $ 5,882 The following table presents other supplemental information related to leases: December 31, 2019 Weighted Average Remaining Lease Term (in years) Operating leases 4.9 Finance leases 1.2 Weighted Average Discount Rate Operating leases 5.4 % Finance leases 4.9 % |
Future Minimum Lease Payment Obligations Under Operating Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2019 are as follows (in thousands): Year Ending December 31, Operating Leases Finance Leases 2020 $ 22,461 $ 5,896 2021 16,679 108 2022 13,319 12 2023 9,992 6 2024 8,569 — Thereafter 11,899 — Total 82,919 6,022 Imputed Interest (11,017) (140) Total $ 71,902 $ 5,882 In addition to the above, as of December 31, 2019, we have entered into an additional operating lease with future lease payments of $39 million that will commence in 2020 with a lease term of 10 years. |
Future Minimum Lease Payment Obligations Under Financing Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2019 are as follows (in thousands): Year Ending December 31, Operating Leases Finance Leases 2020 $ 22,461 $ 5,896 2021 16,679 108 2022 13,319 12 2023 9,992 6 2024 8,569 — Thereafter 11,899 — Total 82,919 6,022 Imputed Interest (11,017) (140) Total $ 71,902 $ 5,882 In addition to the above, as of December 31, 2019, we have entered into an additional operating lease with future lease payments of $39 million that will commence in 2020 with a lease term of 10 years. |
Equity-Based Awards (Tables)
Equity-Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
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, 2019 2018 2017 Exercise price $ 21.37 $ 22.89 $ 21.33 Average risk-free interest rate 2.40 % 2.72 % 2.10 % Expected life (in years) 6.11 6.11 6.11 Implied volatility 26.32 % 23.17 % 22.02 % Dividend yield 2.62 % 2.46 % 2.64 % |
Share-based Payments Activities | The following table summarizes the stock option award activities under our outstanding equity based compensation plans and agreements for the year ended December 31, 2019: Weighted-Average Quantity Exercise Price Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) (1) Outstanding at December 31, 2018 4,197,243 $ 20.80 7.6 $ 9,257 Granted 1,288,430 21.37 Exercised (492,061) 15.14 Cancelled (515,246) 21.87 Outstanding at December 31, 2019 4,478,366 $ 21.46 7.4 $ 8,000 Vested and exercisable at December 31, 2019 2,201,768 $ 21.05 6.1 $ 5,832 ______________________ (1) Aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options awards and the closing price of our common stock of $22.44 on December 31, 2019. |
Restricted Stock Activities | The following table summarizes the activities for our RSUs for the year ended December 31, 2019: Quantity Weighted-Average Grant Date Fair Value Unvested at December 31, 2018 5,612,887 $ 23.11 Granted 3,426,800 21.49 Vested (1,948,707) 24.06 Cancelled (725,400) 21.76 Unvested at December 31, 2019 6,365,580 $ 22.06 |
Performance Stock Activities | The following table summarizes the activities for our PSUs for the year ended December 31, 2019: Quantity Weighted-Average Grant Date Fair Value Unvested at December 31, 2018 1,718,770 $ 22.60 Granted 1,210,331 21.36 Vested (508,168) 22.69 Cancelled (331,428) 22.25 Unvested at December 31, 2019 2,089,505 $ 21.99 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators Used in Computations of Basic and Diluted Earnings Per Share from Continuing Operations | The following table reconciles the numerators and denominators used in the computations of basic and diluted earnings per share from continuing operations (in thousands, expect per share data): Year Ended December 31, 2019 2018 2017 Numerator: Income from continuing operations $ 164,312 $ 340,921 $ 249,576 Less: Net income attributable to noncontrolling interests 3,954 5,129 5,113 Net income from continuing operations available to common stockholders, basic and diluted $ 160,358 $ 335,792 $ 244,463 Denominator: Basic weighted-average common shares outstanding 274,168 275,235 276,893 Add: Dilutive effect of stock options and restricted stock awards 2,049 2,283 1,427 Diluted weighted-average common shares outstanding 276,217 277,518 278,320 Earnings per share from continuing operations: Basic $ 0.58 $ 1.22 $ 0.88 Diluted $ 0.58 $ 1.21 $ 0.88 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
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 LPP’s benefit obligations and fair value of assets during the years ended December 31, 2019 and 2018, and the unfunded status as of December 31, 2019 and 2018 (in thousands): Year Ended December 31, 2019 2018 Change in benefit obligation: Benefit obligation at January 1 $ (428,216) $ (459,439) Interest cost (18,324) (17,090) Actuarial (loss) gain, net (47,632) 18,529 Benefits paid 30,736 29,784 Benefit obligation at December 31 $ (463,436) $ (428,216) Change in plan assets: Fair value of assets at January 1 $ 312,455 $ 347,773 Actual return on plan assets 54,945 (25,333) Employer contributions 1,600 19,800 Benefits paid (30,736) (29,785) Fair value of assets at December 31 $ 338,264 $ 312,455 Unfunded status at December 31 $ (125,172) $ (115,761) |
Schedule of Amount Recognized in Accumulated Other Comprehensive Income Loss Net of Deferred Taxes | The amounts recognized in accumulated other comprehensive income (loss) associated with the LPP, net of deferred taxes of $42 million and $40 million as of December 31, 2019 and 2018, respectively, are as follows (in thousands): December 31, 2019 2018 Net actuarial loss $ (154,608) $ (151,444) Prior service credit 10,210 11,322 Accumulated other comprehensive loss $ (144,398) $ (140,122) |
Schedule of Components of Net Periodic Benefit Cost | The following table provides the components of net periodic benefit costs associated with the LPP and the principal assumptions used in the measurement of the LPP benefit obligations and net benefit costs for the three years ended December 31, 2019, 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Interest cost $ 18,324 $ 17,090 $ 18,731 Expected return on plan assets (18,510) (18,790) (20,934) Amortization of prior service credit (1,432) (1,432) (1,432) Amortization of actuarial loss 6,516 7,362 6,517 Net cost $ 4,898 $ 4,230 $ 2,882 Weighted-average discount rate used to measure benefit obligations 3.53 % 4.41 % 3.81 % Weighted average assumptions used to determine net benefit cost: Discount rate 4.41 % 3.81 % 4.36 % Expected return on plan assets 5.75 % 5.75 % 6.50 % |
Schedule of Obligations Recognized in Other Comprehensive Income | The following table provides the pre-tax amounts recognized in other comprehensive income (loss), including the amortization of the actuarial loss and prior service credit, associated with the LPP for the years ended December 31, 2019, 2018 and 2017 (in thousands): Obligations Recognized in Year Ended December 31, Other Comprehensive Income 2019 2018 2017 Net actuarial loss $ 11,196 $ 25,595 $ 679 Amortization of actuarial loss (6,516) (7,362) (6,517) Amortization of prior service credit 1,432 1,432 1,432 Total loss (income) recognized in other comprehensive income $ 6,112 $ 19,665 $ (4,406) Total recognized in net periodic benefit cost and other comprehensive income $ 11,010 $ 23,895 $ (1,524) |
Schedule of Fair Value of LPP Assets | As defined in Note 10. Fair Value Measurements, the following tables present the fair value of the LPP assets as of December 31, 2019, and 2018: Fair Value Measurements at December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Common collective trusts: Global equity securities $ — $ 323,810 $ — $ 323,810 Money market mutual fund 4,506 — — 4,506 Real estate — — 9,948 9,948 Total assets at fair value $ 4,506 $ 323,810 $ 9,948 $ 338,264 Fair Value Measurements at December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Common collective trusts: Fixed income securities $ — $ 181,156 $ — $ 181,156 Global equity securities — 108,152 — 108,152 Money market mutual fund 2,311 — — 2,311 Real estate — — 20,836 20,836 Total assets at fair value $ 2,311 $ 289,308 $ 20,836 $ 312,455 |
Schedule of Plan Assets Valued Using Significant Unobservable Inputs (Level 3) | The following table provides a rollforward of plan assets valued using significant unobservable inputs (level 3), in thousands: Real Estate Ending balance at December 31, 2017 $ 19,455 Contributions 307 Net distributions (307) Advisory fee (198) Net investment income 845 Unrealized gain 717 Net realized gain 17 Ending balance at December 31, 2018 20,836 Contributions 331 Net distributions (11,235) Advisory fee (205) Net investment income 771 Unrealized loss (541) Net realized loss (9) Ending balance at December 31, 2019 $ 9,948 |
Summary of Estimated Future Benefit Payments | We expect the LPP to make the following estimated future benefit payments (in thousands): Amount 2020 $ 30,729 2021 31,864 2022 32,304 2023 31,067 2024 35,036 2025-2029 170,880 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Segment information for the years ended December 31, 2019, 2018 and 2017 is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Revenue Travel Network $ 2,882,662 $ 2,806,194 $ 2,550,470 Airline Solutions 840,338 822,747 816,008 Hospitality Solutions 292,880 273,079 258,352 Eliminations (40,892) (35,064) (26,346) Total revenue $ 3,974,988 $ 3,866,956 $ 3,598,484 Adjusted Gross Profit (Loss) (a) Travel Network $ 1,016,695 $ 1,098,052 $ 1,071,249 Airline Solutions 326,610 355,079 366,255 Hospitality Solutions 64,842 83,333 88,477 Corporate (16,341) (15,056) (25,795) Total $ 1,391,806 $ 1,521,408 $ 1,500,186 Adjusted Operating Income (Loss) (b) Travel Network $ 648,838 $ 755,811 $ 746,625 Airline Solutions 80,428 111,146 137,932 Hospitality Solutions (21,632) 12,881 9,670 Corporate (194,226) (178,406) (188,078) Total $ 513,408 $ 701,432 $ 706,149 Adjusted EBITDA (c) Travel Network $ 852,856 $ 951,709 $ 923,615 Airline Solutions 251,442 293,577 296,437 Hospitality Solutions 31,466 52,824 42,784 Total segments 1,135,764 1,298,110 1,262,836 Corporate (189,404) (173,720) (184,265) Total $ 946,360 $ 1,124,390 $ 1,078,571 Depreciation and amortization Travel Network $ 121,083 $ 118,276 $ 109,579 Airline Solutions 171,014 182,431 158,505 Hospitality Solutions 53,098 39,943 33,114 Total segments 345,195 340,650 301,198 Corporate 69,426 72,694 99,673 Total $ 414,621 $ 413,344 $ 400,871 Capital Expenditures Travel Network $ 15,580 $ 64,943 $ 90,881 Airline Solutions 37,062 98,374 116,948 Hospitality Solutions 11,324 39,160 43,443 Total segments 63,966 202,477 251,272 Corporate 51,200 81,463 65,165 Total $ 115,166 $ 283,940 $ 316,437 (a) The following table sets forth the reconciliation of Adjusted Gross Profit to operating income in our statement of operations (in thousands): Year Ended December 31, 2019 2018 2017 Adjusted Gross Profit $ 1,391,806 $ 1,521,408 $ 1,500,186 Less adjustments: Selling, general and administrative 576,568 513,526 510,075 Impairment and related charges (7) — — 81,112 Cost of revenue adjustments: Depreciation and amortization (1) 340,889 341,653 317,812 Amortization of upfront incentive consideration (2) 82,935 77,622 67,411 Restructuring and other costs (4) — — 12,604 Stock-based compensation 27,997 26,591 17,732 Operating income $ 363,417 $ 562,016 $ 493,440 (b) The following table sets forth the reconciliation of Adjusted Operating Income to operating income in our statement of operations (in thousands): Year Ended December 31, 2019 2018 2017 Adjusted Operating income $ 513,408 $ 701,432 $ 706,149 Less adjustments: Joint venture equity income 2,044 2,556 2,580 Impairment and related charges (7) — — 81,112 Acquisition-related amortization (1c) 64,604 68,008 95,860 Restructuring and other costs (4) — — 23,975 Acquisition-related costs (5) 41,037 3,266 — Litigation costs, net (6) (24,579) 8,323 (35,507) Stock-based compensation 66,885 57,263 44,689 Operating income $ 363,417 $ 562,016 $ 493,440 (c) The following table sets forth the reconciliation of Adjusted EBITDA to income from continuing operations in our statement of operations (in thousands): Year Ended December 31, 2019 2018 2017 Adjusted EBITDA $ 946,360 $ 1,124,390 $ 1,078,571 Less adjustments: Impairment and related charges (7) — — 81,112 Depreciation and amortization of property and equipment (1a) 310,573 303,612 264,880 Amortization of capitalized implementation costs (1b) 39,444 41,724 40,131 Acquisition-related amortization (1c) 64,604 68,008 95,860 Amortization of upfront incentive consideration (2) 82,935 77,622 67,411 Interest expense, net 156,391 157,017 153,925 Loss on extinguishment of debt — 633 1,012 Other, net (3) 9,432 8,509 (36,530) Restructuring and other costs (4) — — 23,975 Acquisition-related costs (5) 41,037 3,266 — Litigation costs, net (6) (24,579) 8,323 (35,507) Stock-based compensation 66,885 57,263 44,689 Provision for income taxes (8) 35,326 57,492 128,037 Income from continuing operations $ 164,312 $ 340,921 $ 249,576 ________________________ (1) Depreciation and amortization expenses (see Note 1. Summary of Business and Significant Accounting Policies for associated asset lives): (a) Depreciation and amortization of property and equipment includes software developed for internal use as well as amortization of contract acquisition costs. (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. (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 ten (3) In 2019, Other, net primarily includes 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. In 2018, we recognized an expense of $5 million related to our liability under the TRA offset by a gain of $8 million on the sale of an investment. In 2017, we recognized a benefit of $60 million due to a reduction to our liability under the TRA primarily due to a provisional adjustment resulting from the enactment of TCJA which reduced the U.S. corporate income tax rate (see Note 7. Income Taxes), offset by a loss of $15 million related to debt modification costs associated with a debt refinancing. In addition, all periods presented include 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. We recorded $25 million in charges associated with an announced action to reduce our workforce in 2017. These reductions aligned our operations with business needs and implemented an ongoing cost and organizational structure consistent with our expected growth needs and opportunities. (5) Acquisition-related costs represent fees and expenses incurred associated with the 2019 acquisition of Radixx and the 2018 agreement to acquire Farelogix, which is anticipated to close in 2020. See Note 3. Acquisitions. (6) Litigation costs, net represent charges associated with antitrust and other foreign non-income tax contingency matters. In 2019, we recognized the reversal of our previously accrued loss related to US Airways legal matter for $32 million. In 2018, we recorded non-income tax expense of $5 million for tax, penalties and interest associated with certain non-income tax claims for historical periods regarding permanent establishment in a foreign jurisdiction. In 2017, we recorded a $43 million reimbursement, net of accrued legal and related expenses, from a settlement with our insurance carriers with respect to the American Airlines litigation. See Note 16. Commitments and Contingencies. (7) Impairment and related charges represents an $81 million impairment charge recorded in 2017 associated with net capitalized contract costs related to an Airline Solutions' customer based on our analysis of the recoverability of such amounts. See Note 4. Impairment and Related Charges for additional information. (8) In 2018, the provision for income taxes includes a benefit of $27 million related to the enactment of the TCJA for deferred taxes and foreign tax effects. In 2017, provision for income taxes includes a provisional impact of $47 million recognized as a result of the enactment of the TCJA in December 2017. See Note 7. Income Taxes. |
Schedule of Revenues by Geographic Area | Our revenues and long-lived assets, excluding goodwill and intangible assets, by geographic region are summarized below. Revenue of our Travel Network business is attributed to countries based on the location of the travel supplier. For Airline Solutions and Hospitality Solutions, revenue is attributed to countries based on the location of the customer. The majority of our revenues and long-lived assets are derived from the United States, Europe, and Asia-Pacific ("APAC") as follows (in thousands): Year Ended December 31, 2019 2018 2017 Revenue: United States (1) $ 1,306,450 $ 1,346,895 $ 1,340,893 Europe 913,245 928,533 777,406 APAC 822,679 820,711 715,740 All Other 932,614 770,817 764,445 Total $ 3,974,988 $ 3,866,956 $ 3,598,484 ________________________ (1) United States includes revenue related to Canada and Mexico in 2018 and 2017 that is reflected in 'All Other' in 2019. |
Schedule of Long-Lived Assets by Geographic Area | As of December 31, 2019 2018 Long-lived assets United States (1) $ 622,034 $ 773,739 Europe 1,594 3,735 APAC 11,521 7,254 All Other 6,573 5,644 Total $ 641,722 $ 790,372 ________________________ (1) United States includes long-lived assets related to Canada and Mexico in 2018 and 2017 that is reflected in 'All Other' in 2019. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Results | A summary of our quarterly financial results for the years ended December 31, 2019 and 2018 is presented below (in thousands): Year Ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 1,049,361 $ 1,000,006 $ 984,199 $ 941,422 Operating income 110,407 81,913 113,460 57,637 Income from continuing operations 59,214 28,094 65,180 11,824 (Loss) income from discontinued operations, net of tax (1,452) 1,350 (596) (1,068) Net income 57,762 29,444 64,584 10,756 Net income attributable to common stockholders 56,850 27,838 63,813 10,091 Net income per share attributable to common stockholders: Basic $ 0.20 $ 0.10 $ 0.24 $ 0.04 Diluted $ 0.20 $ 0.10 $ 0.23 $ 0.04 Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 988,369 $ 984,376 $ 970,283 $ 923,928 Operating income 165,401 138,833 136,763 121,019 Income from continuing operations 90,449 92,565 70,879 87,028 (Loss) income from discontinued operations, net of tax (1,207) 760 3,664 (1,478) Net income 89,242 93,325 74,543 85,550 Net income attributable to common stockholders 87,880 92,246 73,005 84,400 Net income per share attributable to common stockholders: Basic $ 0.32 $ 0.33 $ 0.26 $ 0.31 Diluted $ 0.32 $ 0.33 $ 0.26 $ 0.30 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)reporting_unitsegment$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Jan. 01, 2020USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of business segments | segment | 3 | |||
Advertising expense | $ 19,000,000 | $ 19,000,000 | $ 18,000,000 | |
Allowance for doubtful accounts receivable | 58,000,000 | 45,000,000 | ||
Depreciation and amortization of property and equipment | 295,000,000 | 288,000,000 | 256,000,000 | |
Amortization | 39,444,000 | 41,724,000 | 40,131,000 | |
Capitalized software development | $ 89,000,000 | 252,000,000 | 251,000,000 | |
Number of reportable segments | reporting_unit | 3 | |||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 | |
Dividend per common share (in dollars per share) | $ / shares | $ 0.56 | $ 0.56 | $ 0.56 | |
Retained deficit | $ (763,482,000) | $ (768,566,000) | ||
Costs to Fulfill Contracts | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization of capitalized implementation costs, included in depreciation and amortization | 39,444,000 | 37,904,000 | $ 40,000,000 | |
Software developed for internal use | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization | 241,000,000 | 236,000,000 | $ 203,000,000 | |
Commercial Air Travel | Accounts receivable, net | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, net | $ 375,000,000 | $ 334,000,000 | ||
Commercial Air Travel | Accounts receivable, net | Customer Concentration Risk | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Concentration risk percentage | 82.00% | 81.00% | ||
Commercial Air Travel | ACH Payment | Customer Concentration Risk | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Concentration risk percentage | 59.00% | |||
Commercial Air Travel | Air Revenue | Customer Concentration Risk | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Concentration risk percentage | 89.00% | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Expected life of service contracts with significant travel agency customers | 3 years | |||
Amortization period | 2 years | |||
Amortization of capitalized implementation costs | 3 years | |||
Minimum | Accounting Standards Update 2016-13 | Subsequent event | Forecast | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained deficit | $ 13,000,000 | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Expected life of service contracts with significant travel agency customers | 5 years | |||
Amortization period | 30 years | |||
Amortization of capitalized implementation costs | 10 years | |||
Maximum | Accounting Standards Update 2016-13 | Subsequent event | Forecast | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained deficit | $ (23,000,000) |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Depreciation and Amortization Policies for Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 35 years |
Furniture and fixtures | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture and fixtures | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 15 years |
Equipment, general office and computer | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Equipment, general office and computer | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Software developed for internal use | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Software developed for internal use | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Summary of Business and Signi_6
Summary of Business and Significant Accounting Policies - Voting Interest on Stock Held in Investee (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Equity Method Investments [Line Items] | ||
Investments in joint ventures | $ 24 | $ 24 |
NMCs | Minimum | ||
Schedule Of Equity Method Investments [Line Items] | ||
Voting interest percentage | 20.00% | |
NMCs | Maximum | ||
Schedule Of Equity Method Investments [Line Items] | ||
Voting interest percentage | 49.00% | |
Ess Elektroniczne Systemy Spzedazy Sp Zo | ||
Schedule Of Equity Method Investments [Line Items] | ||
Voting interest percentage | 40.00% | |
Sabre Bulgaria A D | ||
Schedule Of Equity Method Investments [Line Items] | ||
Voting interest percentage | 20.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue recognized | $ 61 | ||
Impairment loss | $ 2 | $ 4 | |
ASU 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction of retained deficit | $ 102 | ||
Reduction of retained deficit, net of tax | $ 78 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from External Customer [Line Items] | ||
Contract assets, noncurrent | $ 105,461 | $ 60,075 |
Contract assets | 6,000 | 4,000 |
Prepaid expenses and other current assets | ||
Revenue from External Customer [Line Items] | ||
Contract assets, current | 105,499 | 79,268 |
Accounts receivable, net | ||
Revenue from External Customer [Line Items] | ||
Contract assets, current | 539,806 | 501,467 |
Other assets, net | ||
Revenue from External Customer [Line Items] | ||
Contract assets, noncurrent | 38,250 | 50,467 |
Other noncurrent liabilities | ||
Revenue from External Customer [Line Items] | ||
Contract liabilities | $ 167,832 | $ 165,858 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | $ 941,422 | $ 984,199 | $ 1,000,006 | $ 1,049,361 | $ 923,928 | $ 970,283 | $ 984,376 | $ 988,369 | $ 3,974,988 | $ 3,866,956 | $ 3,598,484 |
Travel Network | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 2,882,662 | 2,806,194 | |||||||||
Travel Network | Air | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 2,338,602 | 2,284,419 | |||||||||
Travel Network | Lodging, Ground and Sea | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 370,652 | 350,152 | |||||||||
Travel Network | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 173,408 | 171,623 | |||||||||
Airline Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 840,338 | 822,747 | |||||||||
Airline Solutions | SabreSonic Passenger Reservation System | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 506,579 | 501,085 | |||||||||
Airline Solutions | Commercial and Operations Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 328,485 | 312,751 | |||||||||
Airline Solutions | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 5,274 | 8,911 | |||||||||
Airline Solutions | License fee | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 34,000 | 27,000 | |||||||||
Hospitality Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 292,880 | 273,079 | |||||||||
Hospitality Solutions | SynXis Software and Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 257,612 | 240,583 | |||||||||
Hospitality Solutions | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | 35,268 | 32,496 | |||||||||
Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Sabre Revenue | $ (40,892) | $ (35,064) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capitalized Contract Cost [Roll Forward] | |||
Beginning balance | $ 189,447 | ||
Impairment | (2,000) | $ (4,000) | |
Ending balance | 175,966 | 189,447 | |
Costs to Obtain Contracts | |||
Capitalized Contract Cost [Roll Forward] | |||
Beginning balance | 21,298 | 19,353 | |
Additions | 9,378 | 7,924 | |
Amortization | (7,081) | (6,404) | |
Other | 0 | 425 | |
Ending balance | 23,595 | 21,298 | $ 19,353 |
Costs to Fulfill Contracts | |||
Capitalized Contract Cost [Roll Forward] | |||
Beginning balance | 189,448 | 194,501 | |
Additions | 28,588 | 39,168 | |
Amortization | (39,444) | (37,904) | (40,000) |
Impairment | (2,405) | (4,013) | |
Other | (219) | (2,304) | |
Ending balance | $ 175,968 | $ 189,448 | $ 194,501 |
Acquisitions - Acquisitions (De
Acquisitions - Acquisitions (Details) - USD ($) $ in Thousands | Nov. 14, 2018 | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Net cash consideration | $ 107,462 | $ 0 | $ 0 | ||
Department Of Justice Lawsuit | |||||
Business Acquisition [Line Items] | |||||
Payments for legal settlements | 20,000 | ||||
Farelogix | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 360,000 | ||||
Farelogix | Department Of Justice Lawsuit | |||||
Business Acquisition [Line Items] | |||||
Payments for legal settlements | $ 20,000 | ||||
Radixx Solutions International, Inc. | |||||
Business Acquisition [Line Items] | |||||
Net cash consideration | $ 107,000 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,633,251 | $ 2,552,369 | $ 2,554,987 | |
Radixx Solutions International, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 3,348 | |||
Accounts receivable | 2,587 | |||
Other current assets | 244 | |||
Goodwill | 82,402 | |||
Property and equipment, net | 2,142 | |||
Deferred tax assets | 2,968 | |||
Other long term assets, net | 2,641 | |||
Current liabilities | (7,071) | |||
Deferred tax liabilities | (1,583) | |||
Other noncurrent liabilities | (2,668) | |||
Total acquisition price | 110,810 | |||
Radixx Solutions International, Inc. | Acquired customer relationships, net | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 13,600 | |||
Weighted-average useful life of intangible assets acquired | 10 years | |||
Radixx Solutions International, Inc. | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 10,800 | |||
Weighted-average useful life of intangible assets acquired | 5 years | |||
Radixx Solutions International, Inc. | Trade name | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 1,400 | |||
Weighted-average useful life of intangible assets acquired | 18 years |
Impairment and Related Charges
Impairment and Related Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment and related charges | $ 0 | $ 0 | $ 81,112 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Change in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 2,552,369 | $ 2,554,987 |
Acquired | 82,402 | |
Adjustments | (1,520) | (2,618) |
Ending Balance | 2,633,251 | 2,552,369 |
Travel Network | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 2,104,789 | 2,104,822 |
Acquired | 0 | |
Adjustments | (7) | (33) |
Ending Balance | 2,104,782 | 2,104,789 |
Airline Solutions | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 291,363 | 290,985 |
Acquired | 82,402 | |
Adjustments | (107) | 378 |
Ending Balance | 373,658 | 291,363 |
Hospitality Solutions | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 156,217 | 159,180 |
Acquired | 0 | |
Adjustments | (1,406) | (2,963) |
Ending Balance | $ 154,811 | $ 156,217 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,983,093 | $ 1,958,068 |
Accumulated Amortization | (1,409,440) | (1,344,820) |
Net Carrying Amount | 573,653 | 613,248 |
Acquired customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,046,382 | 1,033,555 |
Accumulated Amortization | (735,367) | (709,824) |
Net Carrying Amount | 311,015 | 323,731 |
Trademarks and brand names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 333,638 | 332,239 |
Accumulated Amortization | (147,735) | (137,009) |
Net Carrying Amount | 185,903 | 195,230 |
Reacquired rights | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 113,500 | 113,500 |
Accumulated Amortization | (73,124) | (56,910) |
Net Carrying Amount | 40,376 | 56,590 |
Purchased technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 437,288 | 426,488 |
Accumulated Amortization | (409,204) | (400,750) |
Net Carrying Amount | 28,084 | 25,738 |
Acquired contracts, supplier and distributor agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 37,599 | 37,600 |
Accumulated Amortization | (29,324) | (25,867) |
Net Carrying Amount | 8,275 | 11,733 |
Non-compete agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,686 | 14,686 |
Accumulated Amortization | (14,686) | (14,460) |
Net Carrying Amount | $ 0 | $ 226 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 64,604 | $ 68,000 | $ 96,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Future Finite Lived Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 65,915 | |
2021 | 64,337 | |
2022 | 50,736 | |
2023 | 37,030 | |
2024 | 58,395 | |
2025 and thereafter | 297,240 | |
Net Carrying Amount | $ 573,653 | $ 613,248 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Receivables, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid Expenses | $ 77,326 | $ 80,049 |
Value added tax receivable | 39,381 | 57,486 |
Other | 22,504 | 32,708 |
Prepaid expenses and other current assets | $ 139,211 | $ 170,243 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, Gross | $ 2,457,566 | $ 2,315,166 |
Accumulated depreciation and amortization | (1,815,844) | (1,524,794) |
Property and equipment, net | 641,722 | 790,372 |
Buildings and leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Gross | 163,881 | 156,357 |
Furniture, fixtures and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Gross | 38,878 | 38,049 |
Computer equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Gross | 397,454 | 349,454 |
Software developed for internal use | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Gross | $ 1,857,353 | $ 1,771,306 |
Balance Sheet Components - Ot_2
Balance Sheet Components - Other Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Capitalized implementation costs, net | $ 175,966 | $ 189,447 |
Deferred upfront incentive consideration | 151,606 | 162,893 |
Long-term contract assets and customer advances and discounts | 105,461 | 60,075 |
Right-of-Use asset | 64,191 | |
Long-term trade unbilled receivables | 38,250 | 50,467 |
Other | 134,631 | 147,789 |
Other assets, net | $ 670,105 | $ 610,671 |
Balance Sheet Components - Ot_3
Balance Sheet Components - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Pension and other postretirement benefits | $ 127,837 | $ 118,919 |
Deferred revenue | 74,646 | 75,685 |
Tax receivable agreement | 0 | 72,939 |
Lease liabilities | 49,970 | 0 |
Other | 95,069 | 72,952 |
Other noncurrent liabilities | $ 347,522 | $ 340,495 |
Balance Sheet Components - Accu
Balance Sheet Components - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Defined benefit pension and other postretirement benefit plans | $ (143,389) | $ (139,430) |
Unrealized foreign currency translation gain | 4,289 | 7,201 |
Unrealized loss on foreign currency forward contracts, interest rate swaps and available-for-sale securities | (10,206) | (495) |
Total accumulated other comprehensive loss, net of tax | $ (149,306) | $ (132,724) |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease to retained earnings | $ 763,482 | $ 768,566 |
Accumulated other comprehensive loss | $ (149,306) | (132,724) |
ASU 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease to retained earnings | (22,000) | |
Accumulated other comprehensive loss | $ 22,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 |
Income Tax Disclosure [Line Items] | ||||||
Federal income tax rate | 21.00% | 35.00% | ||||
Percentage of interest expense deduction | 30.00% | |||||
One-time transition tax on foreign earnings | $ 47 | $ 27 | $ 48 | |||
TRA liability benefit | 5 | 58 | $ (55) | |||
Reduction related to certain audit and transfer pricing adjustments | $ 3 | |||||
Recognized penalties and interest (benefits) | (7) | 1 | 1 | |||
Unrecognized tax benefits, including interest and penalty | 81 | 93 | 93 | |||
Cumulative accrued interest and penalties | 16 | 23 | 23 | |||
Unrecognized tax benefits increase | 48 | 55 | 53 | |||
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ 70 | 48 | 51 | $ 70 | $ 51 | |
Reasonably possible amount of unrecognized tax benefits may be resolved in the next twelve month | 15 | |||||
lastminute.com | ||||||
Income Tax Disclosure [Line Items] | ||||||
Valuation allowance | 33 | 55 | ||||
Domestic Tax Authority | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carry forwards | 32 | |||||
State Tax Authority | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carry forwards | 7 | |||||
Valuation allowance | 5 | $ 4 | ||||
State Tax Authority | Research | ||||||
Income Tax Disclosure [Line Items] | ||||||
Research tax credit carryforwards | 18 | |||||
Foreign Tax Authority | ||||||
Income Tax Disclosure [Line Items] | ||||||
Deferred tax assets for NOL indefinite carry forwards | $ 165 | |||||
Retained Earnings | ASU 2014-09 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Cumulative effect adjustment | $ (102) | |||||
Deferred Tax Liabilities | ASU 2014-09 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Cumulative effect adjustment | $ 24 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Pretax Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of pre-tax income: | |||
Domestic | $ 30,960 | $ 190,291 | $ 199,685 |
Foreign | 168,678 | 208,122 | 177,928 |
Income from continuing operations before income taxes | $ 199,638 | $ 398,413 | $ 377,613 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes Relating to Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current portion: | |||
Federal | $ 4,488 | $ (49,518) | $ 50,829 |
State and Local | 3,781 | 4,168 | 2,388 |
Non U.S. | 49,982 | 59,743 | 26,060 |
Total current | 58,251 | 14,393 | 79,277 |
Deferred portion: | |||
Federal | (14,215) | 55,502 | 47,372 |
State and Local | (1,692) | (4,812) | (6,178) |
Non U.S. | (7,018) | (7,591) | 7,566 |
Total deferred | (22,925) | 43,099 | 48,760 |
Total provision for income taxes | $ 35,326 | $ 57,492 | $ 128,037 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory Income Taxes and Effective Income Taxes Relating to Continuing Operation (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||
Income tax provision at statutory federal income tax rate | $ 41,924 | $ 83,667 | $ 132,165 | |
State income taxes, net of federal benefit | 2,223 | (42) | (1,727) | |
Impact of non U.S. taxing jurisdictions, net | 14,078 | 5,591 | (13,492) | |
Impact of U.S. TCJA | 0 | (26,730) | 46,563 | |
Employee stock based compensation | 8,380 | 3,884 | (2,849) | |
Research tax credit | (28,593) | (9,818) | (8,777) | |
Tax receivable agreement (TRA) | (536) | 1,019 | (20,861) | |
Other, net | (2,150) | (79) | (2,985) | |
Total provision for income taxes | $ 35,326 | 57,492 | 128,037 | |
One-time transition tax on foreign earning | $ 47,000 | $ 27,000 | $ 48,000 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Accrued expenses | $ 7,547 | $ 8,638 |
Employee benefits other than pension | 23,272 | 34,147 |
Lease liabilities | 9,415 | 0 |
Deferred revenue | 30,715 | 22,351 |
Pension obligations | 27,407 | 26,821 |
Tax loss carryforwards | 54,556 | 70,340 |
Incentive consideration | 6,722 | 9,456 |
Tax credit carryforwards | 16,136 | 31,467 |
Suspended loss | 14,635 | 14,474 |
Other | 5,916 | 8,008 |
Total deferred tax assets | 196,321 | 225,702 |
Deferred tax liabilities: | ||
Right of use assets | (9,261) | 0 |
Depreciation and amortization | (7,059) | (13,298) |
Software developed for internal use | (66,918) | (103,631) |
Intangible assets | (120,528) | (122,921) |
Unrealized gains and losses | (18,778) | (21,840) |
Non U.S. operations | (13,789) | (9,355) |
Investment in partnership | (7,306) | (6,794) |
Total deferred tax liabilities | (243,639) | (277,839) |
Valuation allowance | (38,272) | (59,294) |
Net deferred tax (liability) | $ (85,590) | $ (111,431) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 70,327 | $ 74,388 | $ 49,331 |
Additions for tax positions taken in the current year | 5,149 | 4,450 | 5,279 |
Additions for tax positions of prior years | 12,679 | 2,612 | 21,669 |
Additions for tax positions from acquisitions | 1,294 | 0 | 0 |
Reductions for tax positions of prior years | (19,611) | (5,831) | 0 |
Reductions for tax positions of expired statute of limitations | (1,192) | (3,143) | (1,891) |
Settlements | (4,001) | (2,149) | 0 |
Balance at end of year | $ 64,645 | $ 70,327 | $ 74,388 |
Income Taxes - Tax Receivable A
Income Taxes - Tax Receivable Agreement (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | 24 Months Ended | |||||||
Jan. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||||||||
Percentage of future payments to existing share holders, US federal income tax cash savings | 85.00% | |||||||||
TRA liability benefit (expense) | $ 5,000 | $ 58,000 | $ (55,000) | |||||||
Reduction related to certain audit and transfer pricing adjustments | $ 3,000 | |||||||||
Payments for TRA | $ 101,482 | $ 58,908 | $ 99,241 | |||||||
Early termination payment | $ 1,000 | |||||||||
IRS | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Payments for TRA | $ 30,000 | $ 74,000 | $ 60,000 | $ 101,000 | ||||||
Subsequent event | IRS | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Payments for TRA | $ 72,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Outstanding debt | $ 3,343 | $ 3,406 |
Debt issuance costs | 15 | 18 |
Net unamortized discount | $ 6 | $ 7 |
Debt - Face Value of Outstandin
Debt - Face Value of Outstanding Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Face value of outstanding debt | $ 3,282,195,000 | $ 3,363,420,000 |
Finance lease obligations | 12,368,000 | |
Finance lease obligations | 5,882,000 | |
Face value of total debt outstanding | 3,363,809,000 | 3,431,855,000 |
Less current portion of debt outstanding | (81,614,000) | (68,435,000) |
Line of Credit | Term Loan A | ||
Debt Instrument [Line Items] | ||
Face value of outstanding debt | $ 484,500,000 | 527,250,000 |
Marginal interest rate | 225.00% | |
Line of Credit | Term Loan B | ||
Debt Instrument [Line Items] | ||
Face value of outstanding debt | $ 1,843,427,000 | 1,862,237,000 |
Marginal interest rate | 200.00% | |
Line of Credit | Revolver, $400 million | ||
Debt Instrument [Line Items] | ||
Face value of outstanding debt | $ 0 | 0 |
Credit facility amount | 400,000,000 | |
Senior Secured Notes | 5.375% senior secured notes due 2023 | ||
Debt Instrument [Line Items] | ||
Face value of outstanding debt | $ 530,000,000 | 530,000,000 |
Stated interest rate | 5.375% | |
Senior Secured Notes | 5.25% senior secured notes due 2023 | ||
Debt Instrument [Line Items] | ||
Face value of outstanding debt | $ 500,000,000 | $ 500,000,000 |
Stated interest rate | 5.25% |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facilities (Details) | Mar. 02, 2018 | Aug. 23, 2017USD ($) | Mar. 31, 2017USD ($) | Feb. 22, 2017USD ($) | Jul. 18, 2016 | Jul. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2013USD ($) | Feb. 28, 2013USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | $ 106,560,000 | $ 47,310,000 | $ 1,880,506,000 | ||||||||||
Loss on extinguishment of debt | 0 | 633,000 | $ 1,012,000 | ||||||||||
Net unamortized discount | 6,000,000 | 7,000,000 | |||||||||||
Face value of outstanding debt | 3,282,195,000 | 3,363,420,000 | |||||||||||
Outstanding letters of credit | 12,000,000 | 15,000,000 | |||||||||||
Line of Credit | Amended And Restated Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total net leverage ratio | 4.5 | ||||||||||||
Line of Credit | Prior Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Loss on extinguishment of debt | $ 4,000,000 | ||||||||||||
Line of Credit | Fourth Incremental Term Facility Amendment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Extension of maturity date | 1 year | ||||||||||||
Mortgage Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Extinguishment of debt | $ 80,000,000 | ||||||||||||
Term Loan | Line of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | $ 1,761,000,000 | ||||||||||||
Payment of financing fees | $ 12,000,000 | ||||||||||||
Term Loan | Line of Credit | Amended And Restated Credit Agreement, Term Loan B | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility amount | $ 1,775,000,000 | ||||||||||||
Term Loan | Line of Credit | Amended And Restated Credit Agreement, Term Loan C | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility amount | 425,000,000 | ||||||||||||
Term Loan | Line of Credit | Incremental Term Loan Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility amount | $ 350,000,000 | ||||||||||||
Term Loan | Line of Credit | Second Amended and Restated Credit Agreement, Term Loan A | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility amount | $ 600,000,000 | ||||||||||||
Proceeds from line of credit | 597,000,000 | ||||||||||||
Discount on line of credit | 3,000,000 | ||||||||||||
Term Loan | Line of Credit | Third Incremental Term Facility Amendment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility amount | 1,900,000,000 | ||||||||||||
Proceeds from line of credit | 1,898,000,000 | ||||||||||||
Discount on line of credit | $ 2,000,000 | ||||||||||||
Net unamortized discount | 2,000,000 | 2,000,000 | |||||||||||
Term Loan | Line of Credit | Second Amended and Restated Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | 9,000,000 | 9,000,000 | |||||||||||
Net unamortized discount | $ 3,000,000 | $ 3,000,000 | |||||||||||
Revolving Credit Facility | Line of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | 120,000,000 | ||||||||||||
Payment of financing fees | 11,000,000 | ||||||||||||
Revolving Credit Facility | Line of Credit | Amended And Restated Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility amount | $ 352,000,000 | ||||||||||||
Revolving Credit Facility | Line of Credit | Second Amended and Restated Credit Agreement, New Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility amount | 400,000,000 | ||||||||||||
Revolving Credit Facility | Line of Credit | Fourth Incremental Term Facility Amendment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility amount | $ 400,000,000 | ||||||||||||
Senior secured first-lien net leverage ratio | 3.75 | ||||||||||||
Revolving Credit Facility | Senior Secured Credit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face value of outstanding debt | $ 0 | 0 | |||||||||||
Term Loan B and Incremental Term Loan Facility | Line of Credit | Term Loan B and Incremental Term Loan Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | $ 350,000,000 | ||||||||||||
Term Loan B | Line of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Marginal interest rate | 200.00% | ||||||||||||
Face value of outstanding debt | $ 1,843,427,000 | 1,862,237,000 | |||||||||||
Term Loan B | Line of Credit | Fourth Incremental Term Facility Amendment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility amount | $ 1,891,000,000 | ||||||||||||
Senior secured first-lien net leverage ratio | 3 | ||||||||||||
Term Loan B | Line of Credit | Fourth Incremental Term Facility Amendment | Eurocurrency | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Marginal interest rate | 2.25% | ||||||||||||
Term Loan B | Line of Credit | Fourth Incremental Term Facility Amendment | Base Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Marginal interest rate | 1.25% | ||||||||||||
Term Loan B | Line of Credit | Fifth Incremental Term Facility Amendment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Loss on extinguishment of debt | 1,000,000 | ||||||||||||
Term Loan B | Line of Credit | Fifth Incremental Term Facility Amendment | Other expense | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Financing fees | 2,000,000 | ||||||||||||
Term Loan B | Line of Credit | Fifth Incremental Term Facility Amendment | Eurocurrency | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Marginal interest rate | 2.00% | ||||||||||||
Term Loan B | Line of Credit | Fifth Incremental Term Facility Amendment | Base Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Marginal interest rate | 1.00% | ||||||||||||
Term Loan A | Line of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Marginal interest rate | 225.00% | ||||||||||||
Face value of outstanding debt | $ 484,500,000 | $ 527,250,000 | |||||||||||
Term Loan A | Line of Credit | Fourth Incremental Term Facility Amendment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility amount | $ 570,000,000 | ||||||||||||
Decrease in variable basis spread, maximum | 0.75% | ||||||||||||
Decrease in variable basis spread, quarterly | 0.25% | ||||||||||||
Senior secured first-lien net leverage ratio | 2.25 | ||||||||||||
Term Loan A | Line of Credit | Fourth Incremental Term Facility Amendment | Eurocurrency | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Marginal interest rate | 2.50% | ||||||||||||
Term Loan A | Line of Credit | Fourth Incremental Term Facility Amendment | Eurocurrency | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Marginal interest rate | 1.75% | ||||||||||||
Term Loan A | Line of Credit | Fourth Incremental Term Facility Amendment | Base Rate | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Marginal interest rate | 1.50% | ||||||||||||
Term Loan A | Line of Credit | Fourth Incremental Term Facility Amendment | Base Rate | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Marginal interest rate | 0.75% |
Debt - Principal Payments (Deta
Debt - Principal Payments (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Senior secured leverage ratio | 3 | |
Maximum | ||
Line of Credit Facility [Line Items] | ||
Unused commitment fee percentage | 0.25% | |
Commitment fee percentage | 0.375% | |
Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Periodic payment | $ 62 | |
Term Loan A | ||
Line of Credit Facility [Line Items] | ||
Increase (Decrease) in marginal interest rate | (0.25%) | |
Senior secured leverage ratio | 2.25 | |
Term Loan A | Senior Secured Credit Facilities | First two years | ||
Line of Credit Facility [Line Items] | ||
Equal quarterly principal installments | 1.25% | |
Term Loan A | Senior Secured Credit Facilities | Next three years | ||
Line of Credit Facility [Line Items] | ||
Equal quarterly principal installments | 2.50% | |
Term Loan B | ||
Line of Credit Facility [Line Items] | ||
Increase (Decrease) in marginal interest rate | (0.25%) | |
Senior secured leverage ratio | 3 | |
Term Loan B | Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Equal quarterly principal installments | 0.25% | |
Term Loan B | Senior Secured Credit Facilities | Eurocurrency | ||
Line of Credit Facility [Line Items] | ||
Marginal interest rate | 2.00% | |
Term Loan B | Senior Secured Credit Facilities | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Marginal interest rate | 1.00% | |
Term Loan B | Senior Secured Credit Facilities | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Marginal interest rate | 1.00% | |
Term Loan B | Senior Secured Credit Facilities | Federal Funds Effective Rate | ||
Line of Credit Facility [Line Items] | ||
Marginal interest rate | 0.50% | |
Term Loan C [Member] | ||
Line of Credit Facility [Line Items] | ||
Excess cash flow payment percentage | 50.00% |
Debt - Schedule of Debt Interes
Debt - Schedule of Debt Interest Rate (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Senior Secured Credit | Eurocurrency | Term Loan A | |
Debt Instrument [Line Items] | |
Marginal interest rate | 2.25% |
Senior Secured Credit | Eurocurrency | Term Loan B | |
Debt Instrument [Line Items] | |
Marginal interest rate | 2.00% |
Senior Secured Credit | Eurocurrency | Revolver, $400 million | |
Debt Instrument [Line Items] | |
Marginal interest rate | 2.00% |
Senior Secured Credit | Base Rate | Term Loan A | |
Debt Instrument [Line Items] | |
Marginal interest rate | 1.00% |
Senior Secured Credit | Base Rate | Term Loan B | |
Debt Instrument [Line Items] | |
Marginal interest rate | 1.00% |
Senior Secured Credit | Base Rate | Revolver, $400 million | |
Debt Instrument [Line Items] | |
Marginal interest rate | 1.00% |
Line of Credit | Revolver, $400 million | |
Debt Instrument [Line Items] | |
Credit facility amount | $ 400,000,000 |
Floor interest rate | 0.00% |
Debt - Schedule of Effective In
Debt - Schedule of Effective Interest Rates (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | |||
Including the impact of interest rate swaps | 4.64% | 4.57% | 4.35% |
Excluding the impact of interest rate swaps | 4.63% | 4.36% | 4.03% |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2015 | Apr. 30, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 0 | $ 633,000 | $ 1,012,000 | ||
Senior Secured Notes | 5.375% senior secured notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Face value of debt instruments at the time of issuance | $ 530,000,000 | ||||
Debt instrument interest rate percentage | 5.375% | ||||
Proceeds from issuance of debt, net | $ 522,000,000 | ||||
Senior Secured Notes | Senior Secured Notes Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Face value of debt instruments at the time of issuance | $ 500,000,000 | ||||
Debt instrument interest rate percentage | 5.25% | ||||
Senior Secured Notes | 5.25% senior secured notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Proceeds from issuance of debt, net | $ 494,000,000 |
Debt - Aggregate Maturities of
Debt - Aggregate Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 81,614 | |
2021 | 75,870 | |
2022 | 389,323 | |
2023 | 1,048,817 | |
2024 | 1,768,185 | |
Thereafter | 0 | |
Face value of total debt outstanding | $ 3,363,809 | $ 3,431,855 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Apr. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | |
Derivative [Line Items] | |||||||
Hedging ineffectiveness recorded in earnings | $ 0 | $ 0 | $ 0 | ||||
Estimated gain reclassified from other comprehensive income (loss) to earnings as contracts settle | 2,000,000 | ||||||
Interest Rate Swap | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||
Interest Rate Swap, Floating Term Loan B, 2019 | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 600,000,000 | ||||||
Interest Rate Swap, Floating Term Loan B, 2020 | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 150,000,000 | 300,000,000 | |||||
Interest Rate Swap, Floating Term Loan B, 2021 | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 450,000,000 |
Derivatives - Schedule of Unset
Derivatives - Schedule of Unsettled Purchased Foreign Currency Forward Contracts (Details) - Foreign currency forward contracts - Long ₨ in Thousands, £ in Thousands, zł in Thousands, kr in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019AUD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019SGD ($) | Dec. 31, 2019INR (₨) | Dec. 31, 2019SEK (kr) | Dec. 31, 2019PLN (zł) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2018AUD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018SGD ($) | Dec. 31, 2018INR (₨) | Dec. 31, 2018SEK (kr) | Dec. 31, 2018PLN (zł) |
Polish Zloty | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount | $ 68,971 | zł 265,000 | $ 64,281 | zł 232,500 | |||||||||||
Average contract rate | 0.2603 | 0.2603 | 0.2603 | 0.2603 | 0.2603 | 0.2603 | 0.2603 | 0.2765 | 0.2765 | 0.2765 | 0.2765 | 0.2765 | 0.2765 | 0.2765 | 0.2765 |
Singapore Dollar | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount | $ 46,759 | $ 63,500 | $ 44,504 | $ 59,800 | |||||||||||
Average contract rate | 0.7364 | 0.7364 | 0.7364 | 0.7364 | 0.7364 | 0.7364 | 0.7364 | 0.7442 | 0.7442 | 0.7442 | 0.7442 | 0.7442 | 0.7442 | 0.7442 | 0.7442 |
Indian Rupee | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount | $ 61,708 | ₨ 4,485,000 | $ 39,956 | ₨ 2,880,000 | |||||||||||
Average contract rate | 0.0138 | 0.0138 | 0.0138 | 0.0138 | 0.0138 | 0.0138 | 0.0138 | 0.0139 | 0.0139 | 0.0139 | 0.0139 | 0.0139 | 0.0139 | 0.0139 | 0.0139 |
British Pound Sterling | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount | $ 24,109 | £ 18,400 | $ 26,525 | £ 19,600 | |||||||||||
Average contract rate | 1.3103 | 1.3103 | 1.3103 | 1.3103 | 1.3103 | 1.3103 | 1.3103 | 1.3533 | 1.3533 | 1.3533 | 1.3533 | 1.3533 | 1.3533 | 1.3533 | 1.3533 |
Australian Dollar | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount | $ 11,521 | $ 16,500 | $ 17,674 | $ 23,950 | |||||||||||
Average contract rate | 0.6982 | 0.6982 | 0.6982 | 0.6982 | 0.6982 | 0.6982 | 0.6982 | 0.7379 | 0.7379 | 0.7379 | 0.7379 | 0.7379 | 0.7379 | 0.7379 | 0.7379 |
Swedish Krona | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount | $ 4,106 | kr 38,100 | $ 5,678 | kr 48,250 | |||||||||||
Average contract rate | 0.1075 | 0.1075 | 0.1075 | 0.1075 | 0.1075 | 0.1075 | 0.1075 | 0.1177 | 0.1177 | 0.1177 | 0.1177 | 0.1177 | 0.1177 | 0.1177 | 0.1177 |
Brazilian Real | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount | R$ 14300 | $ 3,753 | |||||||||||||
Average contract rate | 0.2615 | 0.2615 | 0.2615 | 0.2615 | 0.2615 | 0.2615 | 0.2615 | 0.2615 |
Derivatives - Schedule of Outst
Derivatives - Schedule of Outstanding and Matured Interest Rate Swaps (Details) | Dec. 31, 2019USD ($) |
Derivative [Line Items] | |
Floor rate | 1.00% |
Designated as Hedging Instrument | |
Derivative [Line Items] | |
Floor rate | 0.00% |
Designated as Hedging Instrument | 1.15% | |
Derivative [Line Items] | |
Notional amount | $ 750,000,000 |
Interest Rate Paid | 1.15% |
Designated as Hedging Instrument | 1.65% | |
Derivative [Line Items] | |
Notional amount | $ 750,000,000 |
Interest Rate Paid | 1.65% |
Designated as Hedging Instrument | 2.27% | |
Derivative [Line Items] | |
Notional amount | $ 1,350,000,000 |
Interest Rate Paid | 2.27% |
Designated as Hedging Instrument | 2.19% | |
Derivative [Line Items] | |
Notional amount | $ 1,200,000,000 |
Interest Rate Paid | 2.19% |
Designated as Hedging Instrument | 2.81% | |
Derivative [Line Items] | |
Notional amount | $ 600,000,000 |
Interest Rate Paid | 2.81% |
Not Designated as Hedging Instrument | 2.19% | |
Derivative [Line Items] | |
Notional amount | $ 750,000,000 |
Interest Rate Paid | 2.19% |
Not Designated as Hedging Instrument | 1.18% | |
Derivative [Line Items] | |
Notional amount | $ 750,000,000 |
Interest Rate Received | 1.18% |
Not Designated as Hedging Instrument | 2.61% | |
Derivative [Line Items] | |
Notional amount | $ 750,000,000 |
Interest Rate Paid | 2.61% |
Not Designated as Hedging Instrument | 1.67% | |
Derivative [Line Items] | |
Notional amount | $ 750,000,000 |
Interest Rate Received | 1.67% |
Derivatives - Schedule of Estim
Derivatives - Schedule of Estimated Fair Values of Derivatives Designated as Hedging Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative asset (liabilities), net | $ (12,985) | $ (316) |
Prepaid expenses and other current assets | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative asset | 1,953 | 0 |
Prepaid expenses and other current assets | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset | 0 | 3,674 |
Other accrued liabilities | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative liability | 0 | (4,285) |
Other accrued liabilities | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative liability | (7,020) | 0 |
Other assets, net | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset | 0 | 295 |
Other noncurrent liabilities | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative liability | $ (7,918) | $ 0 |
Derivatives - Schedule of Effec
Derivatives - Schedule of Effects of Derivative Instruments Net of Taxes on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion | $ (15,217) | $ (6,842) | $ 16,068 |
Amount of Loss (Gain) Reclassified from Accumulated OCI into Income, Effective Portion | 5,507 | 3,677 | 2,082 |
Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion | (15,217) | ||
Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion | (6,343) | ||
Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion | 15,788 | ||
Amount of Loss (Gain) Reclassified from Accumulated OCI into Income, Effective Portion | 5,507 | 3,677 | 2,082 |
Foreign exchange contracts | Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion | (360) | ||
Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion | (8,250) | ||
Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion | 13,205 | ||
Foreign exchange contracts | Designated as Hedging Instrument | Cash Flow Hedging | Cost of revenue | |||
Derivative [Line Items] | |||
Amount of Loss (Gain) Reclassified from Accumulated OCI into Income, Effective Portion | 5,351 | (322) | (3,001) |
Interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion | (14,857) | ||
Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion | 1,907 | ||
Amount of (Loss) Gain Recognized in OCI on Derivative, Effective Portion | 2,583 | ||
Interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | Interest Expense, net | |||
Derivative [Line Items] | |||
Amount of Loss (Gain) Reclassified from Accumulated OCI into Income, Effective Portion | $ 156 | $ 3,999 | $ 5,083 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total | $ (12,985) | $ (316) |
Fair Value, Inputs, Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total | (12,985) | (316) |
Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total | 0 | 0 |
Foreign currency forward contracts | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset (liabilities), net | 1,953 | (4,285) |
Foreign currency forward contracts | Fair Value, Inputs, Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset (liabilities), net | 0 | 0 |
Foreign currency forward contracts | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset (liabilities), net | 1,953 | (4,285) |
Foreign currency forward contracts | Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset (liabilities), net | 0 | 0 |
Interest Rate Swap | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset (liabilities), net | (14,938) | 3,969 |
Interest Rate Swap | Fair Value, Inputs, Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset (liabilities), net | 0 | 0 |
Interest Rate Swap | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset (liabilities), net | (14,938) | 3,969 |
Interest Rate Swap | Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset (liabilities), net | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value and Carrying Value of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Term Loan A | Estimate of Fair Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial instrument fair value, notes payable | $ 485,106 | $ 520,000 |
Term Loan A | Reported Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial instrument fair value, notes payable | 483,317 | 525,514 |
Term Loan B | Estimate of Fair Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial instrument fair value, notes payable | 1,856,100 | 1,798,223 |
Term Loan B | Reported Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial instrument fair value, notes payable | 1,838,741 | 1,856,496 |
5.375 % Senior Secured Notes Due 2023 | Estimate of Fair Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial instrument fair value, notes payable | 543,536 | 529,799 |
5.375 % Senior Secured Notes Due 2023 | Reported Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial instrument fair value, notes payable | 530,000 | 530,000 |
5.25% Senior Secured Notes Due 2023 | Estimate of Fair Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial instrument fair value, notes payable | 514,670 | 495,248 |
5.25% Senior Secured Notes Due 2023 | Reported Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial instrument fair value, notes payable | $ 500,000 | $ 500,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands, ft² in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)ft²countrylocation | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | $ 64,191 | |||
Other accrued liabilities | 21,932 | |||
Other noncurrent liabilities | $ 49,970 | $ 0 | ||
Option period to terminate leases | 3 years | |||
Square feet of office space leased (in sqft) | ft² | 1.6 | |||
Number of locations with leased office spaces | location | 93 | |||
Number of countries with leased office spaces | country | 48 | |||
Rent expense | $ 29,000 | $ 30,000 | $ 32,000 | |
Optional lease extension term | 5 years | |||
Operating lease liability not yet commenced | $ 39,000 | |||
Operating lease liability not yet commenced, term | 10 years | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Remaining minimum lease terms | 1 year | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Remaining minimum lease terms | 9 years | |||
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | $ 72,000 | |||
Other accrued liabilities | 25,000 | |||
Other noncurrent liabilities | $ 47,000 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 27,035 |
Finance lease cost: | |
Amortization of right-of-use assets | 7,073 |
Interest on lease liabilities | 453 |
Total finance lease cost | $ 7,526 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows used in operating leases | $ 28,374 |
Operating cash flows used in finance leases | 453 |
Financing cash flows used in finance leases | 6,731 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 27,116 |
Finance leases | $ 397 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
Operating lease right-of-use assets | $ 64,191 | |
Other accrued liabilities | 21,932 | |
Other noncurrent liabilities | 49,970 | $ 0 |
Total operating lease liabilities | 71,902 | |
Finance Leases | ||
Property and equipment | 35,349 | |
Accumulated depreciation | (27,163) | |
Property and equipment, net | 8,186 | |
Other accrued liabilities | 5,804 | |
Other noncurrent liabilities | 78 | |
Total finance lease liabilities | $ 5,882 | |
Weighted Average Remaining Lease Term (in years) | ||
Operating leases | 4 years 10 months 24 days | |
Finance leases | 1 year 2 months 12 days | |
Weighted Average Discount Rate | ||
Operating leases | 5.40% | |
Finance leases | 4.90% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 22,461 |
2021 | 16,679 |
2022 | 13,319 |
2023 | 9,992 |
2024 | 8,569 |
Thereafter | 11,899 |
Total | 82,919 |
Imputed Interest | (11,017) |
Total | 71,902 |
Finance Leases | |
2020 | 5,896 |
2021 | 108 |
2022 | 12 |
2023 | 6 |
2024 | 0 |
Thereafter | 0 |
Total | 6,022 |
Imputed Interest | (140) |
Total | $ 5,882 |
Stock and Stockholders_ Equity
Stock and Stockholders’ Equity - Additional Information (Details) - USD ($) | Mar. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 |
Temporary Equity [Line Items] | ||||||
Authorized to repurchase | $ 500,000,000 | |||||
Value of shares repurchased | $ 77,636,000 | $ 26,281,000 | $ 109,100,000 | |||
Common stock cash dividend paid (in dollars per share) | $ 0.14 | $ 0.14 | $ 0.14 | |||
Cash dividends paid to common stockholders | $ 153,508,000 | $ 154,080,000 | $ 154,861,000 | |||
Common stock dividend declared (in dollars per share) | $ 153,508,000 | 154,080,000 | 154,861,000 | |||
Forecast | ||||||
Temporary Equity [Line Items] | ||||||
Common stock dividend declared (in dollars per share) | $ 0.14 | |||||
Common Stock | ||||||
Temporary Equity [Line Items] | ||||||
Number of shares repurchased (in shares) | 3,673,768 | |||||
Value of shares repurchased | $ 78,000,000 | $ 26,000,000 | $ 109,000,000 | |||
Secondary public offering | ||||||
Temporary Equity [Line Items] | ||||||
Shares sold in offering (in shares) | 23,304,636 | 69,304,636 |
Equity-Based Awards - Additiona
Equity-Based Awards - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock reserved and available for issuance (in shares) | 19,220,911 | |||||
Options granted exercisable period | 10 years | |||||
Stock-based compensation expense | $ 66,885 | $ 57,263 | $ 44,689 | |||
Stock options exercised, intrinsic value | $ 4,000 | $ 6,000 | $ 19,000 | |||
Weighted-average fair value (in dollars per share) | $ 4.55 | $ 4.58 | $ 3.67 | |||
Unrecognized compensation expense | $ 9,000 | |||||
Unrecognized compensation expense that will be recognized over a weighted-average period | 2 years 8 months 12 days | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Stock options vesting percentage | 25.00% | |||||
Unrecognized compensation expense | $ 101,000 | |||||
Unrecognized compensation expense that will be recognized over a weighted-average period | 2 years 7 months 6 days | |||||
Total fair value of equity instruments other than options | $ 47,000 | $ 30,000 | $ 23,000 | |||
Performance-based RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Stock options vesting percentage | 25.00% | |||||
Total fair value of equity instruments other than options | $ 11,000 | $ 9,000 | $ 14,000 | |||
Performance-based RSUs | Forecast | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ 6,000 | $ 12,000 | $ 14,000 | |||
2019 Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock reserved and available for issuance (in shares) | 12,500,000 | |||||
2019 Director Equity Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock reserved and available for issuance (in shares) | 500,000 | |||||
Sovereign MEIP, Sovereign 2012 MEIP, 2014 Omnibus, and 2016 Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock reserved and available for issuance (in shares) | 6,720,911 | |||||
2019, 2016, and 2014 Omnibus Plans | Time Based Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Stock options vesting percentage | 25.00% |
Equity-Based Awards - Weighted
Equity-Based Awards - Weighted Average Assumptions Used to Estimate Fair Value of Stock Options Granted (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price (in dollars per share) | $ 21.37 | $ 22.89 | $ 21.33 |
Average risk-free interest rate | 2.40% | 2.72% | 2.10% |
Expected life | 6 years 1 month 9 days | 6 years 1 month 9 days | 6 years 1 month 9 days |
Implied volatility | 26.32% | 23.17% | 22.02% |
Dividend yield | 2.62% | 2.46% | 2.64% |
Equity-Based Awards - Stock Opt
Equity-Based Awards - Stock Option Award Activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Quantity | ||
Outstanding beginning balance (in shares) | 4,197,243 | |
Granted (in shares) | 1,288,430 | |
Exercised (in shares) | (492,061) | |
Cancelled (in shares) | (515,246) | |
Outstanding ending balance (in shares) | 4,478,366 | 4,197,243 |
Vested and exercisable ending balance (in shares) | 2,201,768 | |
Exercise Price | ||
Outstanding beginning balance (in dollars per share) | $ 20.80 | |
Granted (in dollars per share) | 21.37 | |
Exercised (in dollars per share) | 15.14 | |
Cancelled (in dollars per share) | 21.87 | |
Outstanding ending balance (in dollars per share) | 21.46 | $ 20.80 |
Vested and exercisable at ending balance (in dollars per share) | $ 21.05 | |
Remaining Contractual Term (years) | ||
Outstanding balance | 7 years 4 months 24 days | 7 years 7 months 6 days |
Vested and exercisable ending balance | 6 years 1 month 6 days | |
Aggregate Intrinsic Value (in thousands) | ||
Outstanding balance | $ 8,000 | $ 9,257 |
Vested and exercisable ending balance | $ 5,832 | |
Closing price of common stock (in dollars per share) | $ 22.44 |
Equity-Based Awards - Unit Acti
Equity-Based Awards - Unit Activities (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
RSUs | |
Quantity | |
Unvested, beginning of year (in shares) | shares | 5,612,887 |
Granted (in shares) | shares | 3,426,800 |
Vested (in shares) | shares | (1,948,707) |
Cancelled (in shares) | shares | (725,400) |
Unvested at end of year (in shares) | shares | 6,365,580 |
Weighted-Average Grant Date Fair Value | |
Unvested, beginning of year (in dollars per share) | $ / shares | $ 23.11 |
Granted (in dollars per share) | $ / shares | 21.49 |
Vested (in dollars per share) | $ / shares | 24.06 |
Cancelled (in dollars per share) | $ / shares | 21.76 |
Unvested at end of year (in dollars per share) | $ / shares | $ 22.06 |
Performance-based RSUs | |
Quantity | |
Unvested, beginning of year (in shares) | shares | 1,718,770 |
Granted (in shares) | shares | 1,210,331 |
Vested (in shares) | shares | (508,168) |
Cancelled (in shares) | shares | (331,428) |
Unvested at end of year (in shares) | shares | 2,089,505 |
Weighted-Average Grant Date Fair Value | |
Unvested, beginning of year (in dollars per share) | $ / shares | $ 22.60 |
Granted (in dollars per share) | $ / shares | 21.36 |
Vested (in dollars per share) | $ / shares | 22.69 |
Cancelled (in dollars per share) | $ / shares | 22.25 |
Unvested at end of year (in dollars per share) | $ / shares | $ 21.99 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Income from continuing operations | $ 11,824 | $ 65,180 | $ 28,094 | $ 59,214 | $ 87,028 | $ 70,879 | $ 92,565 | $ 90,449 | $ 164,312 | $ 340,921 | $ 249,576 |
Net income attributable to noncontrolling interests | 3,954 | 5,129 | 5,113 | ||||||||
Net income from continuing operations available to common stockholders, basic and diluted | $ 160,358 | $ 335,792 | $ 244,463 | ||||||||
Denominator: | |||||||||||
Basic weighted-average common shares outstanding (in shares) | 274,168 | 275,235 | 276,893 | ||||||||
Add: Dilutive effect of stock options and restricted stock awards (in shares) | 2,049 | 2,283 | 1,427 | ||||||||
Diluted weighted-average common shares outstanding (in shares) | 276,217 | 277,518 | 278,320 | ||||||||
Net income per share attributable to common stockholders: | |||||||||||
Basic (in dollars per share) | $ 0.58 | $ 1.22 | $ 0.88 | ||||||||
Diluted (in dollars per share) | $ 0.58 | $ 1.21 | $ 0.88 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Common stock equivalents (in shares) | 3 | 3 | 5 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||||
Pension obligations | $ 27,407 | $ 26,821 | ||
Pension Benefits | ||||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||||
Actuarial (loss) gain, net | (47,632) | 18,529 | ||
Net benefit obligation | 125,172 | 115,761 | ||
Pension obligations | 42,000 | 40,000 | ||
Pension Benefits | Other noncurrent liabilities | ||||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||||
Net benefit obligation | $ (125,000) | (116,000) | ||
401(k) Plan | ||||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||||
Percent match of contribution plan | 100.00% | |||
Percentage of eligible compensation of contribution plan | 6.00% | |||
Expenses recognized related to the 401(k) Plan | $ 23,000 | 22,000 | $ 25,000 | |
LLP | ||||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||||
Decrease in projected benefit obligation | $ 34,000 | |||
Benefit obligation amortization period | 23 years 6 months | |||
Contribution to pension plan | $ 2,000 | $ 20,000 | ||
Defined benefit plan percentage of funded status | 80.00% | |||
Estimated contributions in 2020 | $ 17,000 | |||
LLP | Sale of Stock | ||||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||||
Defined benefit plan target allocations percentage | 40.00% | |||
LLP | Fixed income securities | ||||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||||
Defined benefit plan target allocations percentage | 15.00% | |||
LLP | Money market mutual fund | ||||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||||
Defined benefit plan target allocations percentage | 15.00% | |||
LLP | Real Estate | ||||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||||
Defined benefit plan target allocations percentage | 30.00% |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefit Plans - Summary of Reconciliation of Changes in Plans Benefit Obligations Fair Value of Assets and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in plan assets: | |||
Fair value of assets, beginning balance | $ 312,455 | ||
Fair value of assets, ending balance | 338,264 | $ 312,455 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning balance | (428,216) | (459,439) | |
Interest cost | (18,324) | (17,090) | $ (18,731) |
Actuarial (loss) gain, net | (47,632) | 18,529 | |
Benefits paid | 30,736 | 29,784 | |
Benefit obligation at ending balance | (463,436) | (428,216) | (459,439) |
Change in plan assets: | |||
Fair value of assets, beginning balance | 312,455 | 347,773 | |
Actual return on plan assets | 54,945 | (25,333) | |
Employer contributions | 1,600 | 19,800 | |
Benefits paid | (30,736) | (29,785) | |
Fair value of assets, ending balance | 338,264 | 312,455 | $ 347,773 |
Unfunded status at December 31 | $ (125,172) | $ (115,761) |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefit Plans - Summary of Amounts Recognized In Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||
Accumulated other comprehensive loss | $ (143,389) | $ (139,430) |
Pension Benefits | ||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | ||
Net actuarial loss | (154,608) | (151,444) |
Prior service credit | 10,210 | 11,322 |
Accumulated other comprehensive loss | $ (144,398) | $ (140,122) |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefit Plans - Summary of Net Period Benefit Costs (Details) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Interest cost | $ 18,324 | $ 17,090 | $ 18,731 |
Expected return on plan assets | (18,510) | (18,790) | (20,934) |
Amortization of prior service credit | (1,432) | (1,432) | (1,432) |
Amortization of actuarial loss | 6,516 | 7,362 | 6,517 |
Net cost | $ 4,898 | $ 4,230 | $ 2,882 |
Weighted-average discount rate used to measure benefit obligations | 3.53% | 4.41% | 3.81% |
Weighted average assumptions used to determine net benefit cost: | |||
Discount rate | 4.41% | 3.81% | 4.36% |
Expected return on plan assets | 5.75% | 5.75% | 6.50% |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefit Plans - Summary of Obligations Recognized in Other Comprehensive Income (Details) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Net actuarial loss | $ 11,196 | $ 25,595 | $ 679 |
Amortization of actuarial loss | (6,516) | (7,362) | (6,517) |
Amortization of prior service credit | 1,432 | 1,432 | 1,432 |
Total loss (income) recognized in other comprehensive income | 6,112 | 19,665 | (4,406) |
Total recognized in net periodic benefit cost and other comprehensive income | $ 11,010 | $ 23,895 | $ (1,524) |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefit Plans - Summary of Fair Value of LPP Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | $ 338,264 | $ 312,455 | |
Money market mutual fund | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | 4,506 | 2,311 | |
Real Estate | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | 9,948 | 20,836 | |
Common Collective Trusts | Fixed income securities | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | 181,156 | ||
Common Collective Trusts | Global equity securities | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | 323,810 | 108,152 | |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | 4,506 | 2,311 | |
Fair Value, Inputs, Level 1 | Money market mutual fund | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | 4,506 | 2,311 | |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | 323,810 | 289,308 | |
Fair Value, Inputs, Level 2 | Common Collective Trusts | Fixed income securities | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | 181,156 | ||
Fair Value, Inputs, Level 2 | Common Collective Trusts | Global equity securities | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | 323,810 | 108,152 | |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | 9,948 | 20,836 | |
Fair Value, Inputs, Level 3 | Real Estate | |||
Defined Benefit Plan And Other Postretirement Benefit Plan Table Text Block [Line Items] | |||
Total plan assets at fair value | $ 9,948 | $ 20,836 | $ 19,455 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefit Plans - Summary of change in Plan Assets Valued Using Significant Unobservable Inputs (level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of assets, beginning balance | $ 312,455 | |
Fair value of assets, ending balance | 338,264 | $ 312,455 |
Fair Value, Inputs, Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of assets, beginning balance | 20,836 | |
Fair value of assets, ending balance | 9,948 | 20,836 |
Real Estate | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of assets, beginning balance | 20,836 | |
Contributions | 331 | 307 |
Net distributions | 11,235 | 307 |
Advisory fee | 205 | 198 |
Net investment income | 771 | 845 |
Unrealized gain | (541) | 717 |
Net realized gain | (9) | 17 |
Fair value of assets, ending balance | 9,948 | 20,836 |
Real Estate | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of assets, beginning balance | 20,836 | 19,455 |
Fair value of assets, ending balance | $ 9,948 | $ 20,836 |
Pension and Other Postretire_10
Pension and Other Postretirement Benefit Plans - Summary of Estimated Future Benefit Payments (Details) - Pension Benefits $ in Thousands | Dec. 31, 2019USD ($) |
Defined Benefit Plan, Estimated Future Benefit Payments | |
2020 | $ 30,729 |
2021 | 31,864 |
2022 | 32,304 |
2023 | 31,067 |
2024 | 35,036 |
2025-2029 | $ 170,880 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2019 | Dec. 31, 2016 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||||||
Outstanding commitments | $ 2,600,000,000 | |||||
Value added tax receivable | $ 22,000,000 | |||||
Percentage of bookings affected (fraction of) | 1.00% | |||||
Foreign Tax Authority | Indian Income Tax Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Interest and penalties related to income taxes | $ 45,000,000 | |||||
US Airways Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Damages awarded | $ 15,000,000 | $ 15,000,000 | ||||
Litigation accrual | $ 32,000,000 | 32,000,000 | 0 | |||
Attorney fees and expenses | $ 17,000,000 | |||||
Accrued loss | $ 32,000,000 | 32,000,000 | ||||
US Airways Litigation | US Airways | ||||||
Loss Contingencies [Line Items] | ||||||
Damages awarded | $ 15,000,000 | $ 5,000,000 | ||||
Damages sought | $ 125,000,000 | |||||
Department Of Justice Lawsuit | ||||||
Loss Contingencies [Line Items] | ||||||
Payments for legal settlements | 20,000,000 | |||||
Department Of Justice Lawsuit | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Estimate of possible loss | $ 25,000,000 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 | ||
Travel Network | Air Revenue | Transaction Based Revenue | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 94.00% | 95.00% | 95.00% |
Airline Solutions | Air Revenue | Transaction Based Revenue | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 80.00% | 81.00% | 74.00% |
Hospitality Solutions | Air Revenue | Transaction Based Revenue | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 80.00% | 81.00% | 83.00% |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 941,422 | $ 984,199 | $ 1,000,006 | $ 1,049,361 | $ 923,928 | $ 970,283 | $ 984,376 | $ 988,369 | $ 3,974,988 | $ 3,866,956 | $ 3,598,484 |
Adjusted Gross Profit (Loss) | 1,391,806 | 1,521,408 | 1,500,186 | ||||||||
Adjusted Operating Income (Loss) | 513,408 | 701,432 | 706,149 | ||||||||
Adjusted EBITDA | 946,360 | 1,124,390 | 1,078,571 | ||||||||
Depreciation and amortization | 414,621 | 413,344 | 400,871 | ||||||||
Capital Expenditures | 115,166 | 283,940 | 316,437 | ||||||||
Travel Network | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,882,662 | 2,806,194 | |||||||||
Airline Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 840,338 | 822,747 | |||||||||
Hospitality Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 292,880 | 273,079 | |||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted EBITDA | 1,135,764 | 1,298,110 | 1,262,836 | ||||||||
Depreciation and amortization | 345,195 | 340,650 | 301,198 | ||||||||
Capital Expenditures | 63,966 | 202,477 | 251,272 | ||||||||
Operating Segments | Travel Network | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,882,662 | 2,806,194 | 2,550,470 | ||||||||
Adjusted Gross Profit (Loss) | 1,016,695 | 1,098,052 | 1,071,249 | ||||||||
Adjusted Operating Income (Loss) | 648,838 | 755,811 | 746,625 | ||||||||
Adjusted EBITDA | 852,856 | 951,709 | 923,615 | ||||||||
Depreciation and amortization | 121,083 | 118,276 | 109,579 | ||||||||
Capital Expenditures | 15,580 | 64,943 | 90,881 | ||||||||
Operating Segments | Airline Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 840,338 | 822,747 | 816,008 | ||||||||
Adjusted Gross Profit (Loss) | 326,610 | 355,079 | 366,255 | ||||||||
Adjusted Operating Income (Loss) | 80,428 | 111,146 | 137,932 | ||||||||
Adjusted EBITDA | 251,442 | 293,577 | 296,437 | ||||||||
Depreciation and amortization | 171,014 | 182,431 | 158,505 | ||||||||
Capital Expenditures | 37,062 | 98,374 | 116,948 | ||||||||
Operating Segments | Hospitality Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 292,880 | 273,079 | 258,352 | ||||||||
Adjusted Gross Profit (Loss) | 64,842 | 83,333 | 88,477 | ||||||||
Adjusted Operating Income (Loss) | (21,632) | 12,881 | 9,670 | ||||||||
Adjusted EBITDA | 31,466 | 52,824 | 42,784 | ||||||||
Depreciation and amortization | 53,098 | 39,943 | 33,114 | ||||||||
Capital Expenditures | 11,324 | 39,160 | 43,443 | ||||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (40,892) | (35,064) | (26,346) | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted Gross Profit (Loss) | (16,341) | (15,056) | (25,795) | ||||||||
Adjusted Operating Income (Loss) | (194,226) | (178,406) | (188,078) | ||||||||
Adjusted EBITDA | (189,404) | (173,720) | (184,265) | ||||||||
Depreciation and amortization | 69,426 | 72,694 | 99,673 | ||||||||
Capital Expenditures | $ 51,200 | $ 81,463 | $ 65,165 |
Segment Information - Adjusted
Segment Information - Adjusted Gross Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||||||||||
Adjusted Gross Profit | $ 1,391,806 | $ 1,521,408 | $ 1,500,186 | ||||||||
Less adjustments: | |||||||||||
Selling, general and administrative | 576,568 | 513,526 | 510,075 | ||||||||
Impairment and related charges | 0 | 0 | 81,112 | ||||||||
Cost of revenue adjustments: | |||||||||||
Depreciation and amortization | 340,889 | 341,653 | 317,812 | ||||||||
Amortization of upfront incentive consideration | 82,935 | 77,622 | 67,411 | ||||||||
Restructuring and other costs | 0 | 0 | 12,604 | ||||||||
Stock-based compensation | 27,997 | 26,591 | 17,732 | ||||||||
Operating income | $ 57,637 | $ 113,460 | $ 81,913 | $ 110,407 | $ 121,019 | $ 136,763 | $ 138,833 | $ 165,401 | $ 363,417 | $ 562,016 | $ 493,440 |
Segment Information - Adjuste_2
Segment Information - Adjusted Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||||||||||
Adjusted Operating Income (Loss) | $ 513,408 | $ 701,432 | $ 706,149 | ||||||||
Less adjustments: | |||||||||||
Joint venture equity income | 2,044 | 2,556 | 2,580 | ||||||||
Impairment and related charges | 0 | 0 | 81,112 | ||||||||
Acquisition-related amortization | 64,604 | 68,008 | 95,860 | ||||||||
Restructuring and other costs | 0 | 0 | 23,975 | ||||||||
Acquisition-related costs | 41,037 | 3,266 | 0 | ||||||||
Litigation (reimbursements) costs | (24,579) | 8,323 | (35,507) | ||||||||
Stock-based compensation | 66,885 | 57,263 | 44,689 | ||||||||
Operating income | $ 57,637 | $ 113,460 | $ 81,913 | $ 110,407 | $ 121,019 | $ 136,763 | $ 138,833 | $ 165,401 | $ 363,417 | $ 562,016 | $ 493,440 |
Segment Information - Adjuste_3
Segment Information - Adjusted EBITDA (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||||
Adjusted EBITDA | $ 946,360,000 | $ 1,124,390,000 | $ 1,078,571,000 | ||||||||||
Less adjustments: | |||||||||||||
Impairment and related charges | 0 | 0 | 81,112,000 | ||||||||||
Depreciation and amortization of property and equipment | 310,573,000 | 303,612,000 | 264,880,000 | ||||||||||
Amortization of capitalized implementation costs | 39,444,000 | 41,724,000 | 40,131,000 | ||||||||||
Acquisition-related amortization | 64,604,000 | 68,008,000 | 95,860,000 | ||||||||||
Amortization of upfront incentive consideration | 82,935,000 | 77,622,000 | 67,411,000 | ||||||||||
Interest expense, net | 156,391,000 | 157,017,000 | 153,925,000 | ||||||||||
Loss on extinguishment of debt | 0 | 633,000 | 1,012,000 | ||||||||||
Other, net | 9,432,000 | 8,509,000 | (36,530,000) | ||||||||||
Restructuring and other costs | 0 | 0 | 23,975,000 | ||||||||||
Acquisition-related costs | 41,037,000 | 3,266,000 | 0 | ||||||||||
Litigation costs, net | (24,579,000) | 8,323,000 | (35,507,000) | ||||||||||
Stock-based compensation | 66,885,000 | 57,263,000 | 44,689,000 | ||||||||||
Provision for income taxes | 35,326,000 | 57,492,000 | 128,037,000 | ||||||||||
Income from continuing operations | $ 11,824,000 | $ 65,180,000 | $ 28,094,000 | $ 59,214,000 | $ 87,028,000 | $ 70,879,000 | $ 92,565,000 | $ 90,449,000 | $ 164,312,000 | 340,921,000 | 249,576,000 | ||
TRA liability benefit (expense) | 5,000,000 | 58,000,000 | $ (55,000,000) | ||||||||||
Minimum | |||||||||||||
Less adjustments: | |||||||||||||
Average expected life of the service contract to cost of revenue | 3 years | ||||||||||||
Maximum | |||||||||||||
Less adjustments: | |||||||||||||
Average expected life of the service contract to cost of revenue | 10 years | ||||||||||||
Workforce Reduction | |||||||||||||
Less adjustments: | |||||||||||||
Restructuring and other costs | 25,000,000 | ||||||||||||
US Airways Litigation | |||||||||||||
Less adjustments: | |||||||||||||
Litigation costs, net | (43,000,000) | ||||||||||||
Accrued loss | $ 32,000,000 | $ 32,000,000 | |||||||||||
Litigation accrual | $ 0 | $ 0 | $ 32,000,000 | ||||||||||
Unasserted Claim | |||||||||||||
Less adjustments: | |||||||||||||
Litigation accrual | $ 5,000,000 | 5,000,000 | $ 5,000,000 | ||||||||||
Other, Net | |||||||||||||
Less adjustments: | |||||||||||||
TRA liability benefit (expense) | (5,000,000) | 60,000,000 | |||||||||||
Gain on sale of investments | 8,000,000 | ||||||||||||
Loss on debt modification | 15,000,000 | ||||||||||||
Income Tax Provision | |||||||||||||
Less adjustments: | |||||||||||||
Remeasurement of deferred tax assets | $ 27,000,000 | $ 47,000,000 |
Segment Information - Summary_2
Segment Information - Summary of Revenues and Long-lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenue | $ 941,422 | $ 984,199 | $ 1,000,006 | $ 1,049,361 | $ 923,928 | $ 970,283 | $ 984,376 | $ 988,369 | $ 3,974,988 | $ 3,866,956 | $ 3,598,484 |
Long-lived assets | 641,722 | 790,372 | 641,722 | 790,372 | |||||||
United States | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenue | 1,306,450 | 1,346,895 | 1,340,893 | ||||||||
Long-lived assets | 622,034 | 773,739 | 622,034 | 773,739 | |||||||
Europe | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenue | 913,245 | 928,533 | 777,406 | ||||||||
Long-lived assets | 1,594 | 3,735 | 1,594 | 3,735 | |||||||
APAC | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenue | 822,679 | 820,711 | 715,740 | ||||||||
Long-lived assets | 11,521 | 7,254 | 11,521 | 7,254 | |||||||
All Other | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenue | 932,614 | 770,817 | $ 764,445 | ||||||||
Long-lived assets | $ 6,573 | $ 5,644 | $ 6,573 | $ 5,644 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Summary of Quarterly Financial Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 941,422 | $ 984,199 | $ 1,000,006 | $ 1,049,361 | $ 923,928 | $ 970,283 | $ 984,376 | $ 988,369 | $ 3,974,988 | $ 3,866,956 | $ 3,598,484 |
Operating income | 57,637 | 113,460 | 81,913 | 110,407 | 121,019 | 136,763 | 138,833 | 165,401 | 363,417 | 562,016 | 493,440 |
Income from continuing operations | 11,824 | 65,180 | 28,094 | 59,214 | 87,028 | 70,879 | 92,565 | 90,449 | 164,312 | 340,921 | 249,576 |
(Loss) income from discontinued operations, net of tax | (1,068) | (596) | 1,350 | (1,452) | (1,478) | 3,664 | 760 | (1,207) | (1,766) | 1,739 | (1,932) |
Net income | 10,756 | 64,584 | 29,444 | 57,762 | 85,550 | 74,543 | 93,325 | 89,242 | $ 162,546 | $ 342,660 | $ 247,644 |
Net income attributable to common stockholders | $ 10,091 | $ 63,813 | $ 27,838 | $ 56,850 | $ 84,400 | $ 73,005 | $ 92,246 | $ 87,880 | |||
Net income per share attributable to common stockholders: | |||||||||||
Basic (in dollars per share) | $ 0.04 | $ 0.24 | $ 0.10 | $ 0.20 | $ 0.31 | $ 0.26 | $ 0.33 | $ 0.32 | $ 0.57 | $ 1.23 | $ 0.87 |
Diluted (in dollars per share) | $ 0.04 | $ 0.23 | $ 0.10 | $ 0.20 | $ 0.30 | $ 0.26 | $ 0.33 | $ 0.32 | $ 0.57 | $ 1.22 | $ 0.87 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning | $ 45.3 | $ 43 | $ 37.1 |
Charged to Expense or Other Accounts | 20.6 | 7.7 | 9.5 |
Write-offs and Other Adjustments | (8.2) | (5.4) | (3.6) |
Balance at End of Period | 57.7 | 45.3 | 43 |
Valuation Allowance for Deferred Tax Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning | 59.3 | 59 | 74.5 |
Charged to Expense or Other Accounts | 0 | 4.7 | (8.8) |
Write-offs and Other Adjustments | (21) | (4.4) | (6.7) |
Balance at End of Period | 38.3 | 59.3 | 59 |
Reserve for Value-Added Tax Receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning | 0 | 0 | 0.3 |
Charged to Expense or Other Accounts | 0 | 0 | 0 |
Write-offs and Other Adjustments | 0 | 0 | (0.3) |
Balance at End of Period | $ 0 | $ 0 | $ 0 |