Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 09, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Travelport Worldwide LTD | |
Entity Central Index Key | 0001424755 | |
Trading Symbol | tvpt | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 126,523,035 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net revenue | $ 656,539 | $ 677,838 |
Costs and expenses | ||
Cost of revenue | 402,032 | 426,397 |
Selling, general and administrative | 113,194 | 125,200 |
Depreciation and amortization | 54,026 | 48,577 |
Total costs and expenses | 569,252 | 600,174 |
Operating income | 87,287 | 77,664 |
Interest expense, net | (34,773) | (14,935) |
Loss on early extinguishment of debt | (17) | (27,661) |
Other expense | (2,055) | (93) |
Income from continuing operations before income taxes | 50,442 | 34,975 |
Provision for income taxes | (28,050) | (3,491) |
Net income from continuing operations | 22,392 | 31,484 |
Income from discontinued operations, net of tax | 27,747 | |
Net income | 22,392 | 59,231 |
Net income attributable to non-controlling interest in subsidiaries | (2,124) | (402) |
Net income attributable to the Company | $ 20,268 | $ 58,829 |
Income per share - Basic: | ||
Income per share - continuing operations (in dollars per share) | $ 0.16 | $ 0.25 |
Income per share - discontinued operations (in dollars per share) | 0.22 | |
Basic income per share (in dollars per share) | $ 0.16 | $ 0.47 |
Weighted average common shares outstanding - Basic (in shares) | 126,508,036 | 125,428,257 |
Income per share - Diluted: | ||
Income per share - continuing operations (in dollars per share) | $ 0.16 | $ 0.25 |
Income per share - discontinued operations (in dollars per share) | 0.22 | |
Diluted income per share (in dollars per share) | $ 0.16 | $ 0.47 |
Weighted average common shares outstanding - Diluted (in shares) | 128,220,382 | 126,131,201 |
Cash dividends declared per common share (in dollars per share) | $ 0.075 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 22,392 | $ 59,231 |
Other comprehensive income, net of tax: | ||
Currency translation adjustment, net of tax | 105 | 4,270 |
Amortization of actuarial loss to net income, net of tax | 3,055 | 2,473 |
Other comprehensive income, net of tax: | 3,160 | 6,743 |
Comprehensive income | 25,552 | 65,974 |
Comprehensive income attributable to non-controlling interest in subsidiaries | (2,124) | (402) |
Comprehensive income attributable to the Company | $ 23,428 | $ 65,572 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 247,725 | $ 213,001 |
Accounts receivable (net of allowances for doubtful accounts of $9,261 and $8,415, respectively) | 259,769 | 209,834 |
Other current assets | 115,075 | 113,605 |
Total current assets | 622,569 | 536,440 |
Property and equipment, net | 487,236 | 495,699 |
Operating lease right-of-use assets | 57,301 | |
Goodwill | 1,083,081 | 1,083,766 |
Trademarks and tradenames | 313,097 | 313,097 |
Other intangible assets, net | 408,172 | 423,512 |
Deferred income taxes | 21,782 | 21,229 |
Other non-current assets | 60,146 | 55,314 |
Total assets | 3,053,384 | 2,929,057 |
Current liabilities: | ||
Accounts payable | 81,497 | 65,936 |
Accrued expenses and other current liabilities | 529,170 | 506,266 |
Current portion of long-term debt | 59,238 | 57,497 |
Current portion of operating lease liabilities | 12,664 | |
Total current liabilities | 682,569 | 629,699 |
Long-term debt | 2,180,284 | 2,194,537 |
Long-term operating lease liabilities | 57,428 | |
Deferred income taxes | 38,919 | 37,254 |
Other non-current liabilities | 216,240 | 219,925 |
Total liabilities | 3,175,440 | 3,081,415 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity (deficit): | ||
Preference shares ($0.0025 par value; 225,000,000 shares authorized; no shares issued and outstanding as of March 31, 2019 and December 31, 2018) | ||
Common shares ($0.0025 par value; 560,000,000 shares authorized; 128,326,915 shares and 128,229,030 shares issued; 126,523,035 shares and 126,436,176 shares outstanding as of March 31, 2019 and December 31, 2018, respectively) | 320 | 320 |
Additional paid in capital | 2,685,538 | 2,680,615 |
Treasury shares, at cost (1,803,880 shares and 1,792,854 shares as of March 31, 2019 and December 31, 2018, respectively) | (27,796) | (27,623) |
Accumulated deficit | (2,628,493) | (2,648,761) |
Accumulated other comprehensive loss | (171,793) | (174,953) |
Total shareholders' equity (deficit) | (142,224) | (170,402) |
Equity attributable to non-controlling interest in subsidiaries | 20,168 | 18,044 |
Total equity (deficit) | (122,056) | (152,358) |
Total liabilities and equity | $ 3,053,384 | $ 2,929,057 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts receivable (in dollars) | $ 9,261 | $ 8,415 |
Preferred stock, par value (in dollars per share) | $ 0.0025 | $ 0.0025 |
Preferred stock, share authorized | 225,000,000 | 225,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0025 | $ 0.0025 |
Common stock, shares authorized | 560,000,000 | 560,000,000 |
Common stock, shares issued | 128,326,915 | 128,229,030 |
Common stock, shares outstanding | 126,523,035 | 126,436,176 |
Treasury stock, shares | 1,803,880 | 1,792,854 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net income | $ 22,392 | $ 59,231 |
Income from discontinued operations, net of tax | (27,747) | |
Net income from continuing operations | 22,392 | 31,484 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 54,026 | 48,577 |
Amortization of customer loyalty payments | 16,454 | 22,343 |
Impairment of long-lived assets | 3,968 | 491 |
Amortization of debt finance costs and debt discount | 836 | 1,890 |
Loss on early extinguishment of debt | 17 | 27,661 |
Unrealized (gain) loss on foreign exchange derivative instruments | (4,448) | 242 |
Unrealized loss (gain) on interest rate derivative instruments | 7,727 | (10,430) |
Equity-based compensation | 3,843 | 5,056 |
Deferred income taxes | 1,052 | (9,836) |
Customer loyalty payments | (18,046) | (27,366) |
Pension liability contribution | (2,916) | (338) |
Changes in assets and liabilities: | ||
Accounts receivable, net | (50,065) | (62,768) |
Other current assets | 342 | (8,057) |
Accounts payable, accrued expenses and other current liabilities | 41,138 | 53,750 |
Other | 7,169 | 10,398 |
Net cash provided by operating activities | 83,489 | 83,097 |
Investing activities | ||
Property and equipment additions | (34,097) | (36,663) |
Net cash used in investing activities | (34,097) | (36,663) |
Financing activities | ||
Proceeds from term loans | 1,400,000 | |
Proceeds from issuance of senior secured notes | 745,000 | |
Repayment of term loans | (5,500) | (2,153,750) |
Repayment of finance lease obligations | (9,366) | (7,409) |
Repayment of other indebtedness | (263) | (591) |
Debt finance costs and lender fees | (17,381) | |
Dividend to shareholders | (9,427) | |
Proceeds from share issuance under employee share purchase plan and stock options | 463 | 2,088 |
Treasury share purchase related to vesting of equity awards | (173) | (235) |
Net cash used in financing activities | (14,839) | (41,705) |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 202 | 397 |
Net increase in cash, cash equivalents and restricted cash | 34,755 | 5,126 |
Cash, cash equivalents and restricted cash at beginning of period | 216,380 | 122,039 |
Cash, cash equivalents and restricted cash at end of period (Note [8]) | 251,135 | 127,165 |
Supplemental disclosure of cash flow information | ||
Interest payments, net of capitalized interest | 37,267 | 31,530 |
Income tax payments, net of refunds | 8,118 | 11,902 |
Right-to-use assets obtained in exchange for finance lease liabilities | $ 1,943 | 2,164 |
Non-cash purchase of property and equipment | $ 4,220 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN TOTAL EQUITY (DEFICIT) - USD ($) $ in Thousands | Common Shares | Additional Paid in Capital | Treasury Shares | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non- Controlling Interest in Subsidiaries | Total |
Balance at Dec. 31, 2017 | $ 317 | $ 2,700,133 | $ (24,755) | $ (2,722,375) | $ (155,621) | $ 9,980 | $ (192,321) |
Balance (in shares) at Dec. 31, 2017 | 126,967,010 | 1,620,397 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Change in accounting policy for revenue recognition | 986 | 986 | |||||
Dividend to shareholders ($0.075 per common share) | (9,699) | (9,699) | |||||
Equity-based compensation | $ 1 | 7,342 | 956 | 8,299 | |||
Equity-based compensation (in shares) | 293,143 | ||||||
Purchase of non-controlling interest in a subsidiary | (1,887) | 1,887 | |||||
Treasury shares purchased in relation to vesting of equity awards | $ (235) | (235) | |||||
Treasury shares purchased in relation to vesting of equity awards (in shares) | 17,445 | ||||||
Treasury shares issued in relation to vesting of equity awards | (123) | $ 123 | |||||
Treasury shares issued in relation to vesting of equity awards (in shares) | (8,008) | ||||||
Comprehensive income, net of tax | 58,829 | 6,743 | 402 | 65,974 | |||
Balance at Mar. 31, 2018 | $ 318 | 2,695,766 | $ (24,867) | (2,662,560) | (148,878) | 13,225 | (126,996) |
Balance (in shares) at Mar. 31, 2018 | 127,260,153 | 1,629,834 | |||||
Balance at Dec. 31, 2018 | $ 320 | 2,680,615 | $ (27,623) | (2,648,761) | (174,953) | 18,044 | $ (152,358) |
Balance (in shares) at Dec. 31, 2018 | 128,229,030 | 1,792,854 | 126,436,176 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 4,923 | $ 4,923 | |||||
Equity-based compensation (in shares) | 97,885 | ||||||
Treasury shares purchased in relation to vesting of equity awards | $ (173) | (173) | |||||
Treasury shares purchased in relation to vesting of equity awards (in shares) | 11,026 | ||||||
Comprehensive income, net of tax | 20,268 | 3,160 | 2,124 | 25,552 | |||
Balance at Mar. 31, 2019 | $ 320 | $ 2,685,538 | $ (27,796) | $ (2,628,493) | $ (171,793) | $ 20,168 | $ (122,056) |
Balance (in shares) at Mar. 31, 2019 | 128,326,915 | 1,803,880 | 126,523,035 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN TOTAL EQUITY (DEFICIT) (Parenthetical) | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Per share dividend to shareholders | $ 0.075 |
Basis of Presentation and the M
Basis of Presentation and the Merger | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation and the Merger | 1. Basis of Presentation Basis of Presentation Travelport Worldwide Limited (the “Company” or “Travelport”) is a technology company that operates a travel commerce platform providing distribution, technology, payment, mobile and other solutions for the global travel and tourism industry, with a presence in approximately 180 countries and territories. The Travel Commerce Platform, through which the Company facilitates travel commerce, connects the world’s leading travel providers (“customers”), such as airlines, hotel chains and car rental companies with online and offline travel buyers, including travel agencies, travel management companies and corporations. As customer needs and technologies evolve, Travelport continues to invest in its Travel Commerce Platform. Travelport has led innovation in electronic distribution and merchandising of airline core and ancillary products and extensively diversified its offerings to hotel, car rental, rail, cruise-line and tour operators. In addition, Travelport has leveraged its domain expertise in the travel industry to design a pioneering business-to-business (“B2B”) travel payment solution that addresses the need of travel agencies to efficiently and securely make payments to travel providers globally. The Company also has a strong focus on mobile commerce, providing a wide range of services that allows airlines, hotels, corporate travel management companies and travel agencies to engage with their customers through digital services, including apps, corporate booking tools and mobile messaging. Travelport utilizes the extensive data managed by its platform to provide an array of additional services, such as advertising solutions, subscription services, business intelligence data services, and marketing-oriented analytical tools to travel agencies, travel providers and other travel data users. Through its Technology Services, Travelport provides critical information technology and hosting services to airlines, such as shopping, ticketing, departure control, business intelligence and other solutions, enabling them to focus on their core business competencies and reduce costs. The Company hosts reservations, inventory management and other related critical systems for Delta Air Lines Inc. The Company has two operating and reportable segments, Travel Solutions and Payment Solutions (see Note 16 – Segment and Geographical Information ). These consolidated condensed financial statements and other consolidated condensed financial information included in this Quarterly Report on Form 10‑Q are unaudited, with the exception of the December 31, 2018 consolidated condensed balance sheet, which was derived from audited consolidated financial statements. These consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. Certain disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In presenting the consolidated condensed financial statements in accordance with U.S. GAAP, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgments and available information. Accordingly, actual results could differ from those estimates. In management’s opinion, the consolidated condensed financial statements contain all normal recurring adjustments necessary for a fair presentation of interim results reported. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These consolidated condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018 filed with the SEC on February 22, 2019. The Merger On December 9, 2018, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Toro Private Holdings III, Ltd. (“Parent”), and following the execution of the joinder agreement, dated December 11, 2018, Toro Private Holdings IV, Ltd. (“Merger Sub”), pursuant to which Merger Sub will merge with and into Travelport, with Travelport continuing as the surviving company and a wholly owned subsidiary of Parent (the “Merger”). Parent and Merger Sub are each affiliated with Siris Partners IV (Cayman) Main, L.P. and Siris Partners IV (Cayman) Parallel, L.P. (collectively, “Siris Cayman Fund IV”). Parent, Merger Sub and Siris Cayman Fund IV are each affiliated with Siris Capital Group, LLC (“Siris”). Siris is a private equity firm headquartered in New York, New York. Elliott Associates, L.P. and Elliott International, L.P. (collectively, the “Elliott Funds”) have agreed to invest alongside Siris Cayman Fund IV in the transactions contemplated by the Merger Agreement and are each affiliated with Evergreen Coast Capital Corp. (“Evergreen”). Evergreen is an affiliate of Elliott Management Corporation that is specifically focused on private equity investments. If the Merger is completed, the shareholders of the Company will be entitled to receive $15.75 in cash, less any applicable withholding taxes, for each common share of Travelport owned by them. Further, the common shares of the Company will no longer be publicly traded and will be delisted from the New York Stock Exchange. In addition, the common shares of the Company will be deregistered under the Securities Exchange Act of 1934, as amended, and the Company will no longer file periodic reports with the SEC. The shareholders of the Company approved the Merger on March 15, 2019. However, the consummation of the Merger is subject to additional closing conditions, including approval under the competition laws of Russia. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Recently Issued Accounting Pronouncements | 2. Recently Issued Accounting Pronouncements Accounting Pronouncements Adopted Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on lease accounting that establishes a right-of-use (“ROU”) model and requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Under this guidance, leases are classified as either finance or operating, with the classification affecting the pattern of expense recognition in the statement of operations. The guidance requires adoption using a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued further guidance to provide another option for transition under which the comparative periods presented in the financial statements in the year of adoption were not required to be restated. Under this transition method, a company could apply the transition provisions on January 1, 2019 (i.e. the effective date). The Company adopted the provisions of this guidance effective January 1, 2019, applying the modified retrospective method to all qualifying leases existing at, or entered into, after January 1, 2019 and with a lease term of greater than 12 months. The Company elected to apply the package of practical expedients that does not require it to reassess the following for any expired or existing leases at the transition date: (i) whether any contractual arrangements are or contain leases, (ii) lease classification as operating or finance and (iii) initial direct costs incurred. The adoption of the new lease guidance as of January 1, 2019 resulted in an increase in the Company’s total assets of $61 million and an increase in its total liabilities of $74 million, arising from the recognition of operating lease ROU assets and operating lease liabilities. The difference of $13 million represented deferred rent for leases that existed as of the date of adoption, which was an offset to the opening balance of operating lease ROU assets. The accounting for finance leases under the new guidance remained substantially unchanged and there was no impact on the Company’s finance lease assets and obligations upon adoption of this guidance. Financial information for the reporting periods beginning after January 1, 2019 is presented under the new lease guidance, while prior period amounts are not adjusted and continue to be reported under the previous lease guidance, resulting in a balance sheet presentation that is not comparable to the prior periods in the first year of adoption. Under the new guidance, leases previously described as capital lease assets and capital lease liabilities are now referred to as finance lease ROU assets and finance lease liabilities, respectively, to conform to the current period presentation. There was no impact on Company’s accumulated deficit balance as of January 1, 2019. Further, there was no impact on the Company’s consolidated condensed statements of operations, total equity (deficit) and cash flows for the quarter ended March 31, 2019 resulting from the application of new lease guidance (see Note 12 – Leases ). Accounting Pronouncements Not Yet Adopted Intangibles—Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued new guidance on a customer’s accounting for implementation, set-up and other upfront costs incurred in a cloud computing arrangement that is hosted by a vendor, which is a service contract. Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. The new guidance also prescribes the balance sheet, income statement and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. This guidance is effective for the Company for the interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued. The Company can choose to adopt the new guidance (1) prospectively to eligible costs incurred on or after the date this guidance is first applied or (2) retrospectively. The Company is currently evaluating the impact of this guidance on its consolidated condensed financial statements. Defined Benefit Plans In August 2018, the FASB issued new guidance that amends certain of the existing guidance to add, remove and clarify disclosure requirements related to defined benefit pension and other post-retirement plans. The guidance requires a company to additionally disclose reasons for significant gains and losses affecting the benefit obligation for the period. The guidance no longer requires certain disclosures, including disclosures on the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for post-retirement health care benefits. This guidance is effective for the Company for the annual reporting periods ending after December 15, 2020 and has to be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated condensed financial statements. Fair Value Measurements In August 2018, the FASB issued new guidance that amends certain of the existing guidance to add, remove and modify disclosure requirements related to fair value measurements. The guidance requires additional disclosures, including the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance no longer requires certain disclosures, including the policy for timing of transfers between levels of the fair value hierarchy and valuation processes for Level 3 fair value measurements. This guidance is effective for the Company for the reporting periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this guidance. The Company is currently evaluating the impact of this guidance on its consolidated condensed financial statements. Financial Instruments—Credit Losses In June 2016, the FASB issued guidance that amends the accounting for credit losses on financial instruments. The guidance adds an impairment model that is based on expected losses rather than incurred losses. Under this new guidance, allowance for credit losses will be recognized based on the estimate of expected credit losses, which will result in more timely recognition of such losses. The guidance requires all available relevant information to be considered when estimating expected credit losses, including details about past events, current conditions and reasonable and supportable forecasts and their implications for expected credit losses. The new guidance is applicable to the Company for interim and annual reporting periods beginning after December 15, 2019 and requires its application using a retrospective transition method. The Company is currently evaluating the impact of the amended guidance on its consolidated condensed financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Revenue | 3. Revenue The following table presents the Company’s net revenue disaggregated by its source. Sales and usage-based taxes are excluded from net revenue. Three Months Ended Three Months Ended (in $ thousands) March 31, 2019 March 31, 2018 Air $ $ Beyond Air Travel Commerce Platform (1) Technology Services Net revenue $ $ (1) Includes $15 million and $18 million of Travel Commerce Platform revenue for the three months ended March 31, 2019 and 2018, respectively, that does not represent revenue recognized from contracts with customers. The Company’s operations are organized into two operating segments: (i) Travel Solutions and (ii) Payment Solutions. Travel Solutions comprise Air, Beyond Air (excluding the Company’s B2B travel payment solutions) and Technology Services. Payment Solutions comprise the Company’s B2B travel payment solutions through eNett International (Jersey) Limited (“eNett”). The table below sets forth segment net revenue: Three Months Ended Three Months Ended (in $ thousands) March 31, 2019 March 31, 2018 Travel Solutions $ $ Payment Solutions Net revenue $ $ The table below sets forth Travel Commerce Platform revenue disaggregated by region: Three Months Ended Three Months Ended (in $ thousands) March 31, 2019 March 31, 2018 Asia Pacific $ 158,664 $ 141,551 Europe 218,947 244,442 Latin America and Canada 33,125 29,859 Middle East and Africa 84,747 79,106 International 495,483 494,958 United States 137,616 157,728 Travel Commerce Platform (1) $ 633,099 $ 652,686 (1) Includes $15 million and $18 million of Travel Commerce Platform revenue for the three months ended March 31, 2019 and 2018, respectively, that does not represent revenue recognized from contracts with customers. Contract Balances Contract assets represent the Company’s right to consideration in exchange for services transferred to a customer when that right is conditioned on the Company’s future performance obligations. Contract liabilities represent the Company’s obligation to transfer services to a customer for which the Company has received consideration (or the amount is due) from the customer. As of March 31, 2019, the Company did not have contract assets. The opening and closing balances of the Company’s accounts receivable and contract liabilities (current and non-current) are as follows: Contract Liabilities (in $ thousands) Accounts Receivable, net (1) Deferred Revenue (current) (1) Deferred Revenue (non-current) (1) Balance as of March 31, 2019 $ 213,474 $ 14,918 $ Balance as of December 31, 2018 167,447 14,449 Increase (Decrease) $ 46,027 $ 469 $ (291) (1) Accounts receivable, net, and deferred revenue exclude balances not related to contracts with customers. Substantially all of the Company’s Air revenue within its Travel Commerce Platform is collected through the International Air Transport Association (“IATA”), the Airline Clearing House (“ACH”) and other similar clearing houses, whereby the payments are submitted monthly to the IATA or the ACH and are settled (on a net basis) within approximately 30 days. Airlines that do not settle payments through them and customers in Beyond Air and Technology Services are generally invoiced on a monthly basis, and the payments are generally received within approximately 30 to 60 days. Deferred revenue is recorded when a performance obligation has not been satisfied but an invoice has been raised. The cash payments received or due in advance of the satisfaction of the Company’s performance obligations were offset by $5 million of net revenue recognized that was included in the deferred revenue balance as of December 31, 2018. Remaining Performance Obligations As of March 31, 2019, the aggregate amount of the transaction price allocated to the Company’s remaining performance obligations was approximately $47 million, of which the Company expects to recognize revenue of approximately 82% over the next 24 months, including approximately 52% over the next 12 months. The Company does not disclose the value of its unsatisfied performance obligations for (i) contracts with an original expected term of one year or less and (ii) contracts for which the Company recognizes revenue at the amounts to which it has the right to invoice for services performed. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes The Company’s tax provision differs significantly from the expected provision amount calculated at the U.S. federal statutory rate primarily as a result of (i) being subject to income tax in numerous non-U.S. jurisdictions with varying income tax rates, (ii) a valuation allowance maintained in various jurisdictions, including the U.S. and the U.K., due to historical losses in such jurisdictions, (iii) certain expenses that are not deductible for tax or do not secure an effective tax deduction under the relevant jurisdictions, including limitation to the tax deductibility of interest expense in the U.K., (iv) certain income or gains that are not subject to tax and (v) items identified as discrete during the interim periods. As of December 31, 2018, the Company had U.S. federal net operating losses (“NOL”) carry forwards of approximately $399 million, which expire between 2030 and 2037 and $17 million that can be utilized indefinitely, state NOL carry forwards, which expire between 2019 and 2038, and alternative minimum tax and other tax credits carry forward of approximately $28 million. The Company had other non–U.S. NOL carry forwards of $393 million that expire between three years and indefinitely. As of December 31, 2018, the deferred tax asset in respect of these U.S. and non–U.S. NOL carry forwards and U.S. tax credits was $208 million. The Company believes it is more likely than not that the benefit from certain U.S. federal, U.S. state and non–U.S. NOL carry forwards and other deferred tax assets will not be realized. Consequently, the Company has recorded valuation allowances of $186 million against such deferred tax assets as of December 31, 2018. The Company also maintains a deferred tax asset of $101 million resulting from intra-entity transfer of assets (intra-group intangibles) with an associated full valuation allowance (as it is more-likely-than-not that this deferred tax asset will not be realized). The Company regularly assesses its ability to realize deferred tax assets. As of March 31, 2019, the Company’s estimated annual effective tax rate includes the impact of releasing a portion of the valuation allowance associated with the U.S. NOL carry forwards due to an increase in taxable temporary differences that support deferred tax asset utilization. However, the Company maintains a valuation allowance on the remaining deferred tax assets. Future realized earnings performance and changes in future earnings projections, among other factors, may cause an adjustment to the conclusion as to whether it is more likely than not that the Company will realize the benefit of the deferred tax assets. This would impact the income tax expense in the period for which it is determined that these factors have changed. For the three months ended March 31, 2019, the Company recognized a $10 million charge for uncertain tax position related to the realizability of U.K. NOL carry forwards. In the first quarter of 2018, the Company expected that there would be future taxable income in the U.K. other than the reversal of deferred tax liabilities. Consequently, the Company realized a net benefit of $10 million following the release of the valuation allowance on the deferred tax assets associated with its U.K. NOL carry forwards. |
Other Current Assets
Other Current Assets | 3 Months Ended |
Mar. 31, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Other Current Assets | 5. Other Current Assets Other current assets consisted of: March 31, December 31, (in $ thousands) 2019 2018 Prepaid expenses $ $ 40,679 Sales and use tax receivables 27,768 Prepaid incentives 14,316 Client funds 11,224 Derivative assets 9,700 Other 9,918 $ 115,075 $ 113,605 Client funds represent cash held on behalf of clients for a short period of time before being transferred to travel industry partners. A compensating balance is held in accrued expenses and other current liabilities as customer prepayments. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 6. Property and Equipment, Net Property and equipment, net, consisted of: March 31, 2019 December 31, 2018 Accumulated Accumulated (in $ thousands) Cost depreciation Net Cost depreciation Net Capitalized software $ $ (816,579) $ $ $ (787,544) $ Computer equipment (92,208) (89,716) Finance lease right-of-use assets (84,800) 215,065 (75,780) Building and leasehold improvements (15,979) (15,282) Construction in progress — 71,292 — $ $ (1,009,566) $ $ $ (968,322) $ The Company recorded depreciation expense (including depreciation on finance lease ROU assets) of $44 million and $38 million for the three months ended March 31, 2019 and 2018, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. Intangible Assets The changes in the carrying amount of goodwill and intangible assets of the Company between January 1, 2019 and March 31, 2019 are as follows: January 1, Foreign March 31, (in $ thousands) 2019 Additions Retirements Exchange 2019 Non-Amortizable Assets: Goodwill $ 1,083,766 $ — $ — $ (685) $ 1,083,081 Trademarks and tradenames 313,097 — — — 313,097 Other Intangible Assets: Acquired intangible assets 743,317 — — (9) 743,308 Accumulated amortization (502,019) (10,165) — 6 (512,178) Acquired intangible assets, net 241,298 (10,165) — (3) 231,130 Customer loyalty payments 370,851 24,235 (39,245) 698 356,539 Accumulated amortization (188,637) (22,223) 31,724 (361) (179,497) Customer loyalty payments, net 182,214 2,012 (7,521) 337 177,042 Other intangible assets, net $ 423,512 $ (8,153) $ (7,521) $ 334 $ 408,172 The changes in the carrying amount of goodwill and intangible assets of the Company between January 1, 2018 and March 31, 2018 are as follows: January 1, Foreign March 31, (in $ thousands) 2018 Additions Retirements Exchange 2018 Non-Amortizable Assets: Goodwill $ 1,089,590 $ — $ — $ 925 $ Trademarks and tradenames 313,097 — — — 313,097 Other Intangible Assets: Acquired intangible assets 743,549 — — 6 743,555 Accumulated amortization (461,666) (10,166) — (32) (471,864) Acquired intangible assets, net 281,883 (10,166) — (26) 271,691 Customer loyalty payments 380,841 45,126 (10,551) 2,008 417,424 Accumulated amortization (166,544) (22,343) 10,315 (843) (179,415) Customer loyalty payments, net 214,297 22,783 (236) 1,165 238,009 Other intangible assets, net $ 496,180 $ 12,617 $ (236) $ 1,139 $ 509,700 Goodwill includes an amount of $7 million as of both March 31, 2019 and December 31, 2018 that has been allocated to the Payment Solutions segment. The Company paid cash of $18 million and $27 million for customer loyalty payments during the three months ended March 31, 2019 and 2018, respectively. Further, as of March 31, 2019 and December 31, 2018, the Company had balances payable of $48 million and $52 million, respectively, for customer loyalty payments (see Note 9 — Accrued Expenses and Other Current Liabilities ) . Amortization expense for acquired intangible assets was $10 million for each of the three months ended March 31, 2019 and 2018 and is included as a component of depreciation and amortization in the Company’s consolidated condensed statements of operations. Included within retirements of customer loyalty payments is $4 million of impairment recognized during the three months ended March 31, 2019. Amortization expense for customer loyalty payments was $16 million (net of derecognition of $6 million of related customer loyalty payments liability) and $22 million for the three months ended March 31, 2019 and 2018, respectively, and is included within cost of revenue or net revenue in the Company’s consolidated condensed statements of operations. |
Other Non-Current Assets
Other Non-Current Assets | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Other Non-Current Assets | 8. Other Non-Current Assets Other non-current assets consisted of: March 31, December 31, (in $ thousands) 2019 2018 Prepaid incentives $ 34,546 $ 28,148 Pension assets 8,249 6,828 Restricted cash 3,410 3,379 Deferred financing costs 1,416 1,517 Derivative assets 201 2,506 Other 12,324 12,936 $ 60,146 $ 55,314 The restricted cash of $3 million as of both March 31, 2019 and December 31, 2018 relates to cash provided as collateral for an operational bank facility. The cash and cash equivalents balance of $248 million and $213 million as of March 31, 2019 and December 31, 2018, respectively, and the restricted cash balance of $3 million as of both March 31, 2019 and December 31, 2018, are considered together to determine the movements in and balances of cash, cash equivalents and restricted cash in the Company’s consolidated condensed statements of cash flows. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 9. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of: March 31, December 31, (in $ thousands) 2019 2018 Accrued commissions and incentives $ $ 282,444 Deferred revenue and rebate obligations 55,221 Accrued payroll and related 78,094 Income tax payable 16,996 Customer prepayments 11,224 Derivative liabilities 16,690 Accrued interest expense 20,528 Pension and post-retirement benefit liabilities 1,561 Other 23,508 $ $ 506,266 Included in accrued commissions and incentives are $48 million and $52 million of accrued customer loyalty payments as of March 31, 2019 and December 31, 2018, respectively. In the third quarter of 2018, the Company initiated plans to enhance the Company’s operational efficiency in response to changes in market conditions and the industry in which the Company operates. As a result, the Company has commenced the implementation of changes to its operating and management structure to streamline and simplify the organization. It is expected that the implementation of these plans will result in savings within its corporate and operational functions. For the three months ended March 31, 2019, the Company recorded severance charges of $1 million, which are included within selling, general and administrative expense on the Company’s consolidated condensed statements of operations as the liability is probable and the amount can be reasonably estimated for anticipated severances in accordance with the Company’s severance policies for ongoing benefit arrangements. A liability for severance costs of $8 million and $16 million is included within accrued payroll and related in the consolidated condensed balance sheets as of March 31, 2019 and December 31, 2018, respectively. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 10. Long-Term Debt Long-term debt consisted of: Interest March 31, December 31, (in $ thousands) rate Maturity 2019 2018 Senior Secured Credit Agreement Term loans (1) L+2.50% March 2025 $ 1,367,688 $ 1,372,666 Revolver borrowings L+2.25% September 2022 — — Senior Secured Notes Senior secured notes (2) 6.00% March 2026 738,504 738,274 Finance lease liabilities 129,306 136,729 Other indebtedness 4,024 4,365 Total debt 2,239,522 2,252,034 Less: current portion 59,238 57,497 Long-term debt $ 2,180,284 $ 2,194,537 (1) As of March 31, 2019 and December 31, 2018, the principal amount of term loans outstanding under the senior secured credit agreement was $1,380 million and $1,385 million, respectively, which is netted for unamortized debt discount of $6 million as of both March 31, 2019 and December 31, 2018 and unamortized debt finance costs of $6 million as of both March 31, 2019 and December 31, 2018. (2) As of both March 31, 2019 and December 31, 2018, the principal amount of senior secured notes outstanding was $745 million, which is netted for unamortized debt finance costs of $6 million and $7 million, as of March 31, 2019 and December 31, 2018, respectively. Senior Secured Credit Agreement During the three months ended March 31, 2019, the Company (i) repaid $6 million principal amount of term loans outstanding under the senior secured credit agreement and (ii) amortized $1 million of debt finance costs and debt discount. The interest rate per annum applicable to (a) the term loans is based on, at the election of the Company, LIBOR plus 2.50% or base rate (as defined in the senior secured credit agreement) plus 1.50% and (b) the borrowings under revolving credit facility, at the election of the Company, LIBOR plus 2.25% or base rate (as defined in the senior secured credit agreement) plus 1.25%. LIBOR rates and base rates have a floor of 0.00%. The Company expects to pay interest based on LIBOR. The Company is not contractually required to repay quarterly installments of the term loans until the fourth quarter of 2019. However, the Company has classified a portion of its term loans (along with the contractual quarterly installments) as current portion of long-term debt as the Company intends, and is able, to make additional voluntary prepayments of the term loans from cash flow from operations, which the Company expects to occur within the next twelve months. The amount of any such prepayments may vary based on the Company’s actual cash flow generation and needs, as well as general economic conditions. Under the senior secured credit agreement, the Company has a $150 million revolving credit facility, which contains a letter of credit sub-limit up to a maximum of $100 million. As of March 31, 2019, there were no outstanding borrowings under the revolving credit facility under the senior secured credit agreement, and $4 million was utilized for the issuance of letters of credit, with a balance of $146 million remaining. Change of Control Under the terms of the senior secured credit agreement, a Change of Control of the Company is considered to be an Event of Default (in each case as defined in the senior secured credit agreement) and, as a result, the Administrative Agent (as defined in the senior secured credit agreement) may and, at the request of the majority of lenders, shall (i) declare the unpaid principal amount of the outstanding term loans and revolving credit loans and the amount of all outstanding payments made by a lender pursuant to a letter of credit, along with the interest accrued and unpaid thereon, to be immediately due and payable, (ii) require the Company to provide cash as collateral in an amount equal to 103% of the aggregate amount available to be drawn under all outstanding letters of credit plus any unreimbursed drawings and (iii) terminate all the commitments of the lenders provided to the Company. Senior Secured Notes As of March 31, 2019, the Company had a principal amount of $745 million in senior secured notes due in March 2026 with a stated interest rate of 6.00% per annum. Change of Control A Change of Control and the Ratings Event, in each case as defined in the Indenture governing the Company’s senior secured notes, if occurs, will constitute a “Change of Control Triggering Event” under the Indenture and, subject to certain conditions, the Company will be required to make an offer to purchase all of the senior secured notes pursuant to the “Change of Control Offer” (as defined in the Indenture), at a price in cash equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest, if any, up to but excluding the date of repurchase, unless the Company has previously or substantially concurrently therewith delivered a redemption notice with respect to all the outstanding senior secured notes as described in the Indenture. Subject to and conditional upon the closing of the Merger, the issuer of the senior secured notes, a wholly owned subsidiary of the Company, has given notice to the trustee under the Indenture and the holders of the senior secured notes of its intention to optionally redeem the notes, in whole at a redemption price equal to 100% of the principal amount plus the Applicable Premium (as defined in the Indenture) and accrued and unpaid interest, if any, to but excluding the redemption date. Finance Lease Obligations During the three months ended March 31, 2019, the Company repaid $9 million under its finance lease obligations and entered into $2 million of new finance leases for information technology assets. As of March 31, 2019, the Company was in full compliance with all restrictive and financial covenants related to its debt. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 11. Financial Instruments The Company uses derivative financial instruments as part of its overall strategy to manage its exposure to market risks primarily associated with fluctuations in foreign currency exchange rates and interest rates. The Company does not use derivatives for trading or speculative purposes. During the three months ended March 31, 2019, there were no material changes in the Company’s foreign currency and interest rate risk management policies or in its fair value methodology. As of March 31, 2019, the Company had a net liability position of $9 million related to its derivative financial instruments. Foreign Currency Risk The Company’s primary foreign currency risk exposure as of March 31, 2019 was due to exchange rate fluctuations that arise from certain intercompany transactions and earnings denominated in non-U.S. dollar currencies and from non-functional currency denominated assets and liabilities. The Company uses foreign currency derivative contracts (forward contracts) to manage its exposure to changes in foreign currency exchange rates, primarily exposure to the British pound, Euro and Australian dollar. The Company did not designate these foreign currency derivative contracts as accounting hedges. Fluctuations in the value of these foreign currency derivative contracts were recorded within the Company’s consolidated condensed statements of operations, which partially offset the impact of the changes in the value of the foreign currency denominated receivables and payables and forecasted earnings they were intended to economically hedge. Interest Rate Risk As of March 31, 2019, the Company’s primary interest rate risk exposure was to interest rate fluctuations in the United States, specifically the impact of LIBOR interest rates on the Company’s U.S. dollar denominated variable rate term loans. During the three months ended March 31, 2019, the average LIBOR rate applied to the term loans was 2.65%. In order to protect against potential higher interest costs resulting from increases in LIBOR, as of March 31, 2019, the Company had outstanding interest rate swap contracts that fix the LIBOR rate payable as follows: Average Notional Amount Interest ($ in thousands) Period Rate 1,200,000 February 2019 to February 2020 2.1906% 400,000 February 2020 to February 2021 2.1925% 320,000 February 2021 to February 2022 3.0178% Presented below is a summary of the gross fair value of the Company’s derivative contracts, which have not been designated as hedging instruments, recorded on the consolidated condensed balance sheets: Fair Value Asset Fair Value (Liability) Balance Sheet March 31, December 31, Balance Sheet March 31, December 31, (in $ thousands) Location 2019 2018 Location 2019 2018 Interest rate swap contracts Other current assets $ $ 8,622 Accrued expenses and other current liabilities $ — $ — Interest rate swap contracts Other non-current assets 2,506 Other non-current liabilities (2,464) (1,535) Foreign currency contracts Other current assets 1,078 Accrued expenses and other current liabilities (11,651) (16,690) Total fair value of derivative assets (liabilities) $ $ $ (14,115) $ (18,225) As of March 31, 2019, the net notional amounts of the Company’s derivative contracts are as follows: March 31, December 31, (in $ thousands) 2019 2018 Interest rate swap contracts (varying contracts and periods as discussed above) $ $ Foreign currency contracts (covering periods until March 2020) The following table provides a reconciliation of the movement in the net carrying amount of derivative financial instruments during the three months ended March 31, 2019 and 2018: Three Months Ended Three Months Ended (in $ thousands) March 31, 2019 March 31, 2018 Net derivative (liability) asset opening balance $ (6,019) $ 18,393 Total (loss) gain for the period included in net income 16,281 Payments on (proceeds from) settlement of derivative contracts (6,093) Net derivative (liability) asset closing balance $ (9,297) $ 28,581 The table below presents the impact of the changes in fair values of derivatives not designated as hedges on net income during the three months ended March 31, 2019 and 2018: Amount of (Loss) Gain Recorded in Net Income Three Months Ended Location of (Loss) Gain Recorded March 31, (in $ thousands) in Statement of Operations 2019 2018 Interest rate swap contracts Interest expense, net $ (4,861) $ 11,222 Foreign currency contracts Selling, general and administrative (2,769) 5,059 $ (7,630) $ 16,281 Fair Value Disclosures for All Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued expenses and other current liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The fair values of the Company’s other financial instruments are as follows: March 31, 2019 December 31, 2018 (in $ thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Asset (liability) Derivative assets Level 2 $ $ $ 12,206 $ 12,206 Derivative liabilities Level 2 (14,115) (14,115) (18,225) (18,225) Total debt Level 2 (2,239,522) (2,316,134) (2,252,034) (2,249,481) The significant unobservable inputs used to fair value the Company’s derivative financial instruments are based on market quoted probability rates of default for each of the derivative assets and liabilities, resulting in a weighted average probability of default of 11% and a recovery rate of 75% for derivative assets and 65% for derivative liabilities. As the credit valuation adjustment applied to arrive at the fair value of derivatives is less than 15% of the unadjusted fair value of derivative instruments for two consecutive quarters, the Company has categorized derivative fair valuations at Level 2 of the fair value hierarchy. A 10% change in the significant unobservable inputs will not have a material impact on the fair value of the derivative financial instruments as of March 31, 2019. The fair value of the Company’s total debt has been determined by calculating the fair value of its term loans and senior secured notes based on quoted prices obtained from independent brokers for identical debt instruments when traded as an asset and is categorized within Level 2 of the fair value hierarchy. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 12. Leases The Company determines whether an arrangement contains a lease at inception. Lease assets represent the Company’s right-to-use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Finance leases are generally those leases that allow the Company to either utilize the entire asset over its economic life or substantially pay for all of the fair value of the asset over the lease term. All other leases are categorized as operating leases. Lease ROU assets and lease liabilities are recognized based on the present value of the fixed lease payments over the lease term at the commencement date. As the interest rate implicit in the lease is generally not determinable in transactions where the Company is a lessee, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments and uses the implicit rate when readily available. The Company determines the incremental borrowing rate through the use of market sources including relevant industry rates. The operating lease ROU assets include lease pre-payments and initial direct costs and are reduced for any lease incentives. The Company’s lease terms may include options to extend or terminate the lease and when it is reasonably certain that the Company will exercise that option, it is reflected in the expected lease terms for ROU assets and lease liabilities. The Company’s lease agreements may include both lease and non-lease components. For leases of information technology equipment used in its data centers, the Company accounts for the lease and non-lease components on a combined basis. For leases of all other assets, lease and non-lease components are accounted for separately. Operating leases are included in operating lease ROU assets and current and long-term portion of operating lease liabilities on the Company’s consolidated condensed balance sheets. Finance leases are included in property and equipment, net, current-portion of long-term debt and long-term debt on the Company’s consolidated condensed balance sheets. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has operating leases in various countries for corporate offices, sales offices and call centers, and certain other equipment in these countries. Operating leases with an initial term of 12 months or less are not recorded on the balance sheet. Certain of the Company’s operating lease agreements include rental payments adjusted periodically for inflation. The Company has finance leases primarily for information technology equipment used in its data centers. All of the Company’s finance lease assets are located in the United States. As of March 31, 2019, the Company’s leases have an expected remaining lease terms of up to 9 years, certain of which include options to extend the leases for up to 6 years, and do not contain any material residual value guarantees or material restrictive covenants. The depreciable life of lease ROU assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The following table sets out the amounts recognized in the consolidated condensed statement of operations for the three months ended March 31, 2019 related to operating and finance leases: Three Months Ended ($ in thousands) March 31, 2019 Finance lease cost: Amortization of right-of-use assets $ 10,432 Interest on finance lease liabilities 1,773 Operating lease cost 3,909 Short-term lease cost 209 Total lease cost $ 16,323 The following table sets out cash flows and other information for the three months ended March 31, 2019 related to operating and finance leases: Three Months Ended ($ in thousands, except as stated otherwise) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Cash used in operating activities related to operating leases $ 4,410 Cash used in operating activities related to finance leases 1,773 Cash used in financing activities related to finance leases 9,366 Right-of-use assets obtained in exchange for finance lease liabilities 1,943 Weighted average remaining lease term: Operating leases 6.32 years Finance leases 2.99 years Weighted average discount rate: Operating leases Finance leases During the three months ended March 31, 2019, there were no significant additions to operating lease ROU assets. The following table sets out the undiscounted future payments for operating and finance lease liabilities as of March 31, 2019: (in $ thousands) Operating Lease Finance Lease Year ending December 31, Liabilities Liabilities 2019 $ 12,973 $ 37,468 2020 14,969 46,397 2021 13,419 38,552 2022 10,964 17,421 2023 9,620 99 Thereafter 24,350 — Total undiscounted future payments 86,295 139,937 Less: Interest costs included (16,203) (10,631) Total lease liabilities 70,092 129,306 Less: current portion of lease liabilities 12,664 44,146 Long-term portion of lease liabilities $ 57,428 $ 85,160 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Purchase Commitments In the ordinary course of business, the Company makes various commitments to purchase goods and services from specific suppliers, including those related to capital expenditures. As of March 31, 2019, the Company had approximately $68 million of outstanding purchase commitments, primarily relating to service contracts for information technology, of which $41 million relates to the twelve months ending March 31, 2020. These purchase obligations extend through 2023. Contingencies Company Litigation The Company is involved in various claims, legal proceedings and governmental inquiries related to contract disputes, business practices, intellectual property and other commercial, employment and tax matters. The Company believes it has adequately accrued for such matters as appropriate or, for matters not requiring accrual, believes they will not have a material adverse effect on its results of operations, financial position or cash flows based on information currently available. However, litigation is inherently unpredictable and although the Company believes its accruals are adequate and/or that it has valid defenses in these matters, unfavorable resolutions could occur, which could have a material effect on the Company’s results of operations or cash flows in a particular reporting period. Standard Guarantees/Indemnification In the ordinary course of business, the Company enters into numerous agreements that contain standard guarantees and indemnities whereby the Company indemnifies another party for breaches of representations and warranties. In addition, many of these parties are also indemnified against any third-party claim resulting from the transaction that is contemplated in the underlying agreement. Such guarantees or indemnifications are granted under various agreements, including those governing (i) purchases, sales or outsourcing of assets or businesses, (ii) leases of real estate, (iii) licensing of trademarks, (iv) use of derivatives and (v) issuances of debt or equity securities. The guarantees or indemnifications issued are for the benefit of the (i) buyers in sale agreements and sellers in purchase agreements, (ii) landlords in lease contracts, (iii) licensees of the Company’s trademarks, (iv) financial institutions in derivative contracts and (v) underwriters in debt or equity security issuances. While some of these guarantees extend only for the duration of the underlying agreement, many survive the expiration of the term of the agreement or extend into perpetuity (unless subject to a legal statute of limitations). There are no specific limitations on the maximum potential amount of future payments the Company could be required to make under these guarantees, nor is the Company able to develop an estimate of the maximum potential amount of future payments to be made under these guarantees, as the triggering events are not subject to predictability and there is little or no history of claims against the Company under such arrangements. With respect to certain of the aforementioned guarantees, such as indemnifications of landlords against third-party claims for the use of real estate property leased by the Company, the Company maintains insurance coverage that mitigates any potential payments to be made. Merger Related In connection with the potential Merger (see Note 1– Basis of Presentation and the Merger ), Morgan Stanley & Co. LLC (“Morgan Stanley”) is acting as financial advisor of the Company. The Company has agreed to pay Morgan Stanley a fee for its services that is expected to be approximately $19 million, substantially all of which is contingent upon the closing of the Merger. The Company also has agreed to reimburse Morgan Stanley for certain expenses, including fees of outside counsel and other professional advisors, incurred in connection with its engagement. Further, under the terms of the Merger Agreement, if the Company terminates the Merger Agreement under certain circumstances after the No-Shop Period Start Date (as defined in the Merger Agreement), it must pay a termination fee of $62.3 million to Parent. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | 14. Equity-Based Compensation Restricted Share Units (“RSUs”) During the three months ended March 31, 2019, the Company did not grant any RSUs. The table below presents the activity of the Company’s RSUs for the three months ended March 31, 2019: Weighted Average Grant Date (in dollars, except number of RSUs) Number of RSUs Fair Value Balance as of January 1, 2019 1,437,465 $ 13.71 Vested (1) (23,902) $ 12.92 Forfeited (31,552) $ 13.56 Balance as of March 31, 2019 (2) 1,382,011 $ 13.73 (1) During the three months ended March 31, 2019, the Company completed net share settlements of 11,026 common shares in connection with employee taxable income created upon vesting of RSUs. The Company agreed to pay these taxes on behalf of the employees in return for the employees returning an equivalent value of common shares. These common shares were accounted for as treasury shares by the Company. (2) As of March 31, 2019, an aggregate of 101,937 RSUs held by certain directors of the Company are excluded from this balance as the directors have elected to defer receiving common shares until termination of their service as a director of the Company. Performance Share Units (“PSUs”) During the three months ended March 31, 2019, the Company did not grant any PSUs. The table below presents the activity of the Company’s PSUs for the three months ended March 31, 2019: Weighted Average Grant Date (in dollars, except number of PSUs) Number of PSUs Fair Value Balance as of January 1, 2019 3,375,854 $ 14.23 Forfeited (63,448) $ 13.80 Balance as of March 31, 2019 (1) 3,312,406 $ 14.22 (1) The total estimated awards that will ultimately vest based on the Company’s forecasted performance against the pre-defined targets and before considering any adjustments that may be necessary based on the ranking of the Company’s total shareholder’s return (“TSR”) compared to the TSR of the selected group is expected to be 2,000,168 PSUs. Stock Options During the three months ended March 31, 2019, the Company did not grant any stock options. The table below presents the activity of the Company’s stock options for the three months ended March 31, 2019: Weighted Average Weighted Average Remaining Aggregate Exercise Price Contractual Terms Intrinsic Value Number of Options (in dollars) (in years) (in $ thousands) Balance as of January 1, 2019 1,423,104 $ Forfeited (14,453) $ Exercised (34,971) $ Expired (16,602) $ Balance as of March 31, 2019 1,357,078 $ $ 2,267 Exercisable as of March 31, 2019 906,603 $ $ 1,162 Expected to vest as of March 31, 2019 450,475 $ $ 1,105 Total equity-based compensation expense recognized in the Company’s consolidated condensed statements of operations for the three months ended March 31, 2019 and 2018 was $4 million and $5 million, respectively ($3 million and $4 million after tax for the three months ended March 31, 2019 and 2018, respectively). The total income tax benefit related to equity-based compensation expense was less than $1 million and $1 million for the three months ended March 31, 2019 and 2018, respectively. The Company expects the future equity-based compensation expense in relation to awards granted and outstanding as of March 31, 2019 will be approximately $18 million. Impact of the Merger The Merger Agreement (see Note 1 – Basis of Presentation and the Merger ) provides that equity awards granted under the Company’s equity incentive plans, including RSUs, PSUs and stock options, that are outstanding (whether vested or unvested) as of immediately before the “Effective Time” (as defined in the Merger Agreement) will be cancelled and converted into cash consideration equal to $15.75 multiplied by the total number of the Company’s common shares subject to such outstanding equity awards, whether vested or unvested, less the applicable exercise price per share with respect to any stock options (to the extent that they have an exercise price of less than $15.75 per option), without interest and subject to any required tax withholdings, payable shortly after the closing of the Merger. For purposes of the previous sentence, the number of PSUs subject to performance-based vesting restrictions in which the performance period is still outstanding as of the Effective Time will be deemed to be the number of shares eligible to vest based on the greater of, with respect to the performance metrics applicable to such PSU, (A) target performance and (B) actual performance determined as if the applicable performance period ended immediately prior to the Effective Time. The number of common shares subject to a PSU award with performance-based vesting in which the performance period has been completed prior to the Effective Time will be deemed to be the number of common shares eligible to vest based on the actual performance with respect to the performance metrics applicable to such PSU. Stock options with a per share exercise price equal to or above $15.75 will be cancelled at the Effective Time for no payment or consideration. |
Income Per Share
Income Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Income Per Share | 15. Income Per Share The following table reconciles the numerators and denominators used in the computation of basic and diluted income per share from continuing operations: Three Months Ended March 31, (in $ thousands, except for share data) 2019 2018 Numerator – Basic and Diluted Income per Share: Net income from continuing operations $ 22,392 $ Net income attributable to non-controlling interest in subsidiaries (2,124) Net income from continuing operations attributable to the Company $ 20,268 $ Denominator – Basic Income per Share: Weighted average common shares outstanding Income per share from continuing operations – Basic $ $ Denominator – Diluted Income per Share: Number of common shares used for basic income per share from continuing operations Weighted average effect of dilutive securities RSUs / PSUs Stock options Weighted average common shares outstanding Income per share from continuing operations – Diluted $ 0.16 $ 0.25 Basic income per share is based on the weighted average number of common shares outstanding during each period. Diluted income per share is based on the weighted average number of common shares outstanding and the effect of all dilutive common share equivalents during each period. For the three months ended March 31, 2019 and 2018, the Company had 1 million and 2 million, respectively, of weighted average common share equivalents primarily associated with the Company’s stock options that were excluded from the calculation of diluted income per share as their inclusion would have been antidilutive, as the common shares repurchased from the total assumed proceeds applying the treasury stock method exceed the shares that would have been issued. |
Segment and Geographical inform
Segment and Geographical information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographical information | 16. Segment and Geographical Information The Company has two operating and reportable segments: Travel Solutions and Payment Solutions. Comprised of Air, Beyond Air (excluding Payment Solutions) and Technology Services, Travel Solutions primarily provides distribution and merchandising solutions for airline, hotel, car rental, rail, cruise-line and tour operators, digital services, advertising and an array of additional platform services. Payment Solutions comprise the Company’s B2B travel payment solutions that operates through eNett. eNett’s core offering is a virtual payment solution that automatically generates unique Mastercard numbers used to process payments globally. The Chief Operating Decision Maker (“CODM”) evaluates segment performance based primarily on net revenue and Segment Adjusted EBITDA, as described below. In addition, the CODM regularly reviews revenue by transaction type. There are no material inter-segment transactions and revenues for any period presented. As the two reportable segments are managed substantially on a separate basis, including each having their individual corporate functions, there are no material central/common corporate transaction expenses such as finance, treasury, tax, legal and marketing that are to be allocated among the reportable segments. The CODM does not review total assets by segment and operating performance evaluations and resource allocation decisions are not made on the basis of total assets by segment. As a result, the Company has not provided information about total segment assets. The Company defines Segment Adjusted EBITDA as net income (loss) of the segment excluding depreciation and amortization of property and equipment and acquired intangible assets, amortization of customer loyalty payments, certain components of defined benefit pension and post-retirement benefit plans, interest expense, net, provision for (benefit from) income taxes, gain (loss) on early extinguishment of debt, and items that the Company’s management and the CODM view as outside the normal course of operations such as, income (loss) from discontinued operations, non-cash equity-based compensation, non-cash impairment of long-lived assets, certain corporate and restructuring costs, certain litigation and related costs, and other non-cash items such as unrealized foreign currency gains (losses) on earnings hedges, and unrealized gains (losses) on interest rate derivate instruments. Segment Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in its calculations. Further, Segment Adjusted EBITDA provides management and investors with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results. The tables below set forth net revenue by segment, and net revenue disaggregated by its source: Three Months Ended March 31, (in $ thousands) 2019 2018 Travel Solutions $ 573,158 $ 604,059 Payment Solutions 83,381 73,779 Net revenue $ 656,539 $ 677,838 Three Months Ended March 31, (in $ thousands) 2019 2018 Air $ 452,687 $ 472,935 Beyond Air 180,412 179,751 Travel Commerce Platform 633,099 652,686 Technology Services 23,440 25,152 Net revenue $ 656,539 $ 677,838 The table below sets forth Segment Adjusted EBITDA: Three Months Ended March 31, (in $ thousands) 2019 2018 Travel Solutions $ 150,856 $ 146,506 Payment Solutions 9,589 7,671 Segment Adjusted EBITDA $ 160,445 $ 154,177 The table below reconciles net income to total Segment Adjusted EBITDA: Three Months Ended March 31, (in $ thousands) 2019 2018 Net income $ 22,392 $ 59,231 Adjustments: Amortization of acquired intangible assets 10,165 10,166 Loss on early extinguishment of debt 17 27,661 Equity-based compensation and related taxes 3,887 4,833 Corporate and restructuring costs 4,393 1,215 Impairment of long-lived assets 3,968 491 Income from discontinued operations — (27,747) Depreciation and amortization of property and equipment 43,761 38,398 Amortization of customer loyalty payments 16,454 22,343 Interest expense, net 27,046 25,365 Other expense 2,055 93 Provision for income taxes 28,050 3,491 Other – non-cash (1) (1,743) (11,363) Segment Adjusted EBITDA $ 160,445 $ 154,177 (1) Includes (i) unrealized gains on foreign currency derivatives contracts of $6 million and $1 million for the three months ended March 31, 2019 and 2018, respectively, (ii) unrealized losses (gains) on interest rate derivative contracts of $8 million and $(10) million for the three months ended March 31, 2019 and 2018, respectively, and (iii) other income of $3 million for the three months ended March 31, 2019. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Recently Issued Accounting Pronouncements | Accounting Pronouncements Adopted Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on lease accounting that establishes a right-of-use (“ROU”) model and requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Under this guidance, leases are classified as either finance or operating, with the classification affecting the pattern of expense recognition in the statement of operations. The guidance requires adoption using a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued further guidance to provide another option for transition under which the comparative periods presented in the financial statements in the year of adoption were not required to be restated. Under this transition method, a company could apply the transition provisions on January 1, 2019 (i.e. the effective date). The Company adopted the provisions of this guidance effective January 1, 2019, applying the modified retrospective method to all qualifying leases existing at, or entered into, after January 1, 2019 and with a lease term of greater than 12 months. The Company elected to apply the package of practical expedients that does not require it to reassess the following for any expired or existing leases at the transition date: (i) whether any contractual arrangements are or contain leases, (ii) lease classification as operating or finance and (iii) initial direct costs incurred. The adoption of the new lease guidance as of January 1, 2019 resulted in an increase in the Company’s total assets of $61 million and an increase in its total liabilities of $74 million, arising from the recognition of operating lease ROU assets and operating lease liabilities. The difference of $13 million represented deferred rent for leases that existed as of the date of adoption, which was an offset to the opening balance of operating lease ROU assets. The accounting for finance leases under the new guidance remained substantially unchanged and there was no impact on the Company’s finance lease assets and obligations upon adoption of this guidance. Financial information for the reporting periods beginning after January 1, 2019 is presented under the new lease guidance, while prior period amounts are not adjusted and continue to be reported under the previous lease guidance, resulting in a balance sheet presentation that is not comparable to the prior periods in the first year of adoption. Under the new guidance, leases previously described as capital lease assets and capital lease liabilities are now referred to as finance lease ROU assets and finance lease liabilities, respectively, to conform to the current period presentation. There was no impact on Company’s accumulated deficit balance as of January 1, 2019. Further, there was no impact on the Company’s consolidated condensed statements of operations, total equity (deficit) and cash flows for the quarter ended March 31, 2019 resulting from the application of new lease guidance (see Note 12 – Leases ). |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s net revenue disaggregated by its source. Sales and usage-based taxes are excluded from net revenue. Three Months Ended Three Months Ended (in $ thousands) March 31, 2019 March 31, 2018 Air $ $ Beyond Air Travel Commerce Platform (1) Technology Services Net revenue $ $ (1) Includes $15 million and $18 million of Travel Commerce Platform revenue for the three months ended March 31, 2019 and 2018, respectively, that does not represent revenue recognized from contracts with customers. |
Disaggregation of Revenue by Segment | The table below sets forth segment net revenue: Three Months Ended Three Months Ended (in $ thousands) March 31, 2019 March 31, 2018 Travel Solutions $ $ Payment Solutions Net revenue $ $ |
Disaggregation Of Revenue By Region | Three Months Ended Three Months Ended (in $ thousands) March 31, 2019 March 31, 2018 Travel Solutions $ $ Payment Solutions Net revenue $ $ The table below sets forth Travel Commerce Platform revenue disaggregated by region: Three Months Ended Three Months Ended (in $ thousands) March 31, 2019 March 31, 2018 Asia Pacific $ 158,664 $ 141,551 Europe 218,947 244,442 Latin America and Canada 33,125 29,859 Middle East and Africa 84,747 79,106 International 495,483 494,958 United States 137,616 157,728 Travel Commerce Platform (1) $ 633,099 $ 652,686 (1) Includes $15 million and $18 million of Travel Commerce Platform revenue for the three months ended March 31, 2019 and 2018, respectively, that does not represent revenue recognized from contracts with customers. |
Contract with Customer Asset and Liability | Contract Liabilities (in $ thousands) Accounts Receivable, net (1) Deferred Revenue (current) (1) Deferred Revenue (non-current) (1) Balance as of March 31, 2019 $ 213,474 $ 14,918 $ Balance as of December 31, 2018 167,447 14,449 Increase (Decrease) $ 46,027 $ 469 $ (291) (1) Accounts receivable, net, and deferred revenue exclude balances not related to contracts with customers. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Summary of other current assets | Other current assets consisted of: March 31, December 31, (in $ thousands) 2019 2018 Prepaid expenses $ $ 40,679 Sales and use tax receivables 27,768 Prepaid incentives 14,316 Client funds 11,224 Derivative assets 9,700 Other 9,918 $ 115,075 $ 113,605 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment, net | Property and equipment, net, consisted of: March 31, 2019 December 31, 2018 Accumulated Accumulated (in $ thousands) Cost depreciation Net Cost depreciation Net Capitalized software $ $ (816,579) $ $ $ (787,544) $ Computer equipment (92,208) (89,716) Finance lease right-of-use assets (84,800) 215,065 (75,780) Building and leasehold improvements (15,979) (15,282) Construction in progress — 71,292 — $ $ (1,009,566) $ $ $ (968,322) $ |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill and intangible assets | The changes in the carrying amount of goodwill and intangible assets of the Company between January 1, 2019 and March 31, 2019 are as follows: January 1, Foreign March 31, (in $ thousands) 2019 Additions Retirements Exchange 2019 Non-Amortizable Assets: Goodwill $ 1,083,766 $ — $ — $ (685) $ 1,083,081 Trademarks and tradenames 313,097 — — — 313,097 Other Intangible Assets: Acquired intangible assets 743,317 — — (9) 743,308 Accumulated amortization (502,019) (10,165) — 6 (512,178) Acquired intangible assets, net 241,298 (10,165) — (3) 231,130 Customer loyalty payments 370,851 24,235 (39,245) 698 356,539 Accumulated amortization (188,637) (22,223) 31,724 (361) (179,497) Customer loyalty payments, net 182,214 2,012 (7,521) 337 177,042 Other intangible assets, net $ 423,512 $ (8,153) $ (7,521) $ 334 $ 408,172 The changes in the carrying amount of goodwill and intangible assets of the Company between January 1, 2018 and March 31, 2018 are as follows: January 1, Foreign March 31, (in $ thousands) 2018 Additions Retirements Exchange 2018 Non-Amortizable Assets: Goodwill $ 1,089,590 $ — $ — $ 925 $ Trademarks and tradenames 313,097 — — — 313,097 Other Intangible Assets: Acquired intangible assets 743,549 — — 6 743,555 Accumulated amortization (461,666) (10,166) — (32) (471,864) Acquired intangible assets, net 281,883 (10,166) — (26) 271,691 Customer loyalty payments 380,841 45,126 (10,551) 2,008 417,424 Accumulated amortization (166,544) (22,343) 10,315 (843) (179,415) Customer loyalty payments, net 214,297 22,783 (236) 1,165 238,009 Other intangible assets, net $ 496,180 $ 12,617 $ (236) $ 1,139 $ 509,700 Goodwill includes an amount of $7 million as of both March 31, 2019 and December 31, 2018 that has been allocated to the Payment Solutions segment. |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Summary of other non-current assets | Other non-current assets consisted of: March 31, December 31, (in $ thousands) 2019 2018 Prepaid incentives $ 34,546 $ 28,148 Pension assets 8,249 6,828 Restricted cash 3,410 3,379 Deferred financing costs 1,416 1,517 Derivative assets 201 2,506 Other 12,324 12,936 $ 60,146 $ 55,314 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Summary of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of: March 31, December 31, (in $ thousands) 2019 2018 Accrued commissions and incentives $ $ 282,444 Deferred revenue and rebate obligations 55,221 Accrued payroll and related 78,094 Income tax payable 16,996 Customer prepayments 11,224 Derivative liabilities 16,690 Accrued interest expense 20,528 Pension and post-retirement benefit liabilities 1,561 Other 23,508 $ $ 506,266 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt | Long-term debt consisted of: Interest March 31, December 31, (in $ thousands) rate Maturity 2019 2018 Senior Secured Credit Agreement Term loans (1) L+2.50% March 2025 $ 1,367,688 $ 1,372,666 Revolver borrowings L+2.25% September 2022 — — Senior Secured Notes Senior secured notes (2) 6.00% March 2026 738,504 738,274 Finance lease liabilities 129,306 136,729 Other indebtedness 4,024 4,365 Total debt 2,239,522 2,252,034 Less: current portion 59,238 57,497 Long-term debt $ 2,180,284 $ 2,194,537 (1) As of March 31, 2019 and December 31, 2018, the principal amount of term loans outstanding under the senior secured credit agreement was $1,380 million and $1,385 million, respectively, which is netted for unamortized debt discount of $6 million as of both March 31, 2019 and December 31, 2018 and unamortized debt finance costs of $6 million as of both March 31, 2019 and December 31, 2018. (2) As of both March 31, 2019 and December 31, 2018, the principal amount of senior secured notes outstanding was $745 million, which is netted for unamortized debt finance costs of $6 million and $7 million, as of March 31, 2019 and December 31, 2018, respectively. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | Average Notional Amount Interest ($ in thousands) Period Rate 1,200,000 February 2019 to February 2020 2.1906% 400,000 February 2020 to February 2021 2.1925% 320,000 February 2021 to February 2022 3.0178% |
Schedule of gross fair value of derivative contracts | Presented below is a summary of the gross fair value of the Company’s derivative contracts, which have not been designated as hedging instruments, recorded on the consolidated condensed balance sheets: Fair Value Asset Fair Value (Liability) Balance Sheet March 31, December 31, Balance Sheet March 31, December 31, (in $ thousands) Location 2019 2018 Location 2019 2018 Interest rate swap contracts Other current assets $ $ 8,622 Accrued expenses and other current liabilities $ — $ — Interest rate swap contracts Other non-current assets 2,506 Other non-current liabilities (2,464) (1,535) Foreign currency contracts Other current assets 1,078 Accrued expenses and other current liabilities (11,651) (16,690) Total fair value of derivative assets (liabilities) $ $ $ (14,115) $ (18,225) |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of March 31, 2019, the net notional amounts of the Company’s derivative contracts are as follows: March 31, December 31, (in $ thousands) 2019 2018 Interest rate swap contracts (varying contracts and periods as discussed above) $ $ Foreign currency contracts (covering periods until March 2020) |
Schedule of reconciliation of the movement in the net carrying amount of derivative financial instruments | March 31, December 31, (in $ thousands) 2019 2018 Interest rate swap contracts (varying contracts and periods as discussed above) $ $ Foreign currency contracts (covering periods until March 2020) The following table provides a reconciliation of the movement in the net carrying amount of derivative financial instruments during the three months ended March 31, 2019 and 2018: Three Months Ended Three Months Ended (in $ thousands) March 31, 2019 March 31, 2018 Net derivative (liability) asset opening balance $ (6,019) $ 18,393 Total (loss) gain for the period included in net income 16,281 Payments on (proceeds from) settlement of derivative contracts (6,093) Net derivative (liability) asset closing balance $ (9,297) $ 28,581 |
Schedule of impact of changes in fair values of derivatives | The table below presents the impact of the changes in fair values of derivatives not designated as hedges on net income during the three months ended March 31, 2019 and 2018: Amount of (Loss) Gain Recorded in Net Income Three Months Ended Location of (Loss) Gain Recorded March 31, (in $ thousands) in Statement of Operations 2019 2018 Interest rate swap contracts Interest expense, net $ (4,861) $ 11,222 Foreign currency contracts Selling, general and administrative (2,769) 5,059 $ (7,630) $ 16,281 |
Schedule of fair values of other financial instruments | The fair values of the Company’s other financial instruments are as follows: March 31, 2019 December 31, 2018 (in $ thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Asset (liability) Derivative assets Level 2 $ $ $ 12,206 $ 12,206 Derivative liabilities Level 2 (14,115) (14,115) (18,225) (18,225) Total debt Level 2 (2,239,522) (2,316,134) (2,252,034) (2,249,481) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule Of Costs Relating To Leases | The following table sets out the amounts recognized in the consolidated condensed statement of operations for the three months ended March 31, 2019 related to operating and finance leases: Three Months Ended ($ in thousands) March 31, 2019 Finance lease cost: Amortization of right-of-use assets $ 10,432 Interest on finance lease liabilities 1,773 Operating lease cost 3,909 Short-term lease cost 209 Total lease cost $ 16,323 The following table sets out cash flows and other information for the three months ended March 31, 2019 related to operating and finance leases: Three Months Ended ($ in thousands, except as stated otherwise) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Cash used in operating activities related to operating leases $ 4,410 Cash used in operating activities related to finance leases 1,773 Cash used in financing activities related to finance leases 9,366 Right-of-use assets obtained in exchange for finance lease liabilities 1,943 Weighted average remaining lease term: Operating leases 6.32 years Finance leases 2.99 years Weighted average discount rate: Operating leases Finance leases During the three months ended March 31, 2019, there were no significant additions to operating lease ROU assets. |
Schedule of Undiscounted Future Payments for Operating Lease Liabilities | (in $ thousands) Operating Lease Finance Lease Year ending December 31, Liabilities Liabilities 2019 $ 12,973 $ 37,468 2020 14,969 46,397 2021 13,419 38,552 2022 10,964 17,421 2023 9,620 99 Thereafter 24,350 — Total undiscounted future payments 86,295 139,937 Less: Interest costs included (16,203) (10,631) Total lease liabilities 70,092 129,306 Less: current portion of lease liabilities 12,664 44,146 Long-term portion of lease liabilities $ 57,428 $ 85,160 |
Schedule of Undiscounted Future Payments for Finance Lease Liabilities | During the three months ended March 31, 2019, there were no significant additions to operating lease ROU assets. The following table sets out the undiscounted future payments for operating and finance lease liabilities as of March 31, 2019: (in $ thousands) Operating Lease Finance Lease Year ending December 31, Liabilities Liabilities 2019 $ 12,973 $ 37,468 2020 14,969 46,397 2021 13,419 38,552 2022 10,964 17,421 2023 9,620 99 Thereafter 24,350 — Total undiscounted future payments 86,295 139,937 Less: Interest costs included (16,203) (10,631) Total lease liabilities 70,092 129,306 Less: current portion of lease liabilities 12,664 44,146 Long-term portion of lease liabilities $ 57,428 $ 85,160 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule for activity of restricted stock units | During the three months ended March 31, 2019, the Company did not grant any RSUs. The table below presents the activity of the Company’s RSUs for the three months ended March 31, 2019: Weighted Average Grant Date (in dollars, except number of RSUs) Number of RSUs Fair Value Balance as of January 1, 2019 1,437,465 $ 13.71 Vested (1) (23,902) $ 12.92 Forfeited (31,552) $ 13.56 Balance as of March 31, 2019 (2) 1,382,011 $ 13.73 (1) During the three months ended March 31, 2019, the Company completed net share settlements of 11,026 common shares in connection with employee taxable income created upon vesting of RSUs. The Company agreed to pay these taxes on behalf of the employees in return for the employees returning an equivalent value of common shares. These common shares were accounted for as treasury shares by the Company. |
Schedule for activity of performance based stock units | During the three months ended March 31, 2019, the Company did not grant any PSUs. The table below presents the activity of the Company’s PSUs for the three months ended March 31, 2019: Weighted Average Grant Date (in dollars, except number of PSUs) Number of PSUs Fair Value Balance as of January 1, 2019 3,375,854 $ 14.23 Forfeited (63,448) $ 13.80 Balance as of March 31, 2019 (1) 3,312,406 $ 14.22 (1) The total estimated awards that will ultimately vest based on the Company’s forecasted performance against the pre-defined targets and before considering any adjustments that may be necessary based on the ranking of the Company’s total shareholder’s return (“TSR”) compared to the TSR of the selected group is expected to be 2,000,168 PSUs. |
Schedule for activity of stock options | Weighted Average Weighted Average Remaining Aggregate Exercise Price Contractual Terms Intrinsic Value Number of Options (in dollars) (in years) (in $ thousands) Balance as of January 1, 2019 1,423,104 $ Forfeited (14,453) $ Exercised (34,971) $ Expired (16,602) $ Balance as of March 31, 2019 1,357,078 $ $ 2,267 Exercisable as of March 31, 2019 906,603 $ $ 1,162 Expected to vest as of March 31, 2019 450,475 $ $ 1,105 |
Income Per Share (Tables)
Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of numerators and denominators used in the computation of basic and diluted income per share | Three Months Ended March 31, (in $ thousands, except for share data) 2019 2018 Numerator – Basic and Diluted Income per Share: Net income from continuing operations $ 22,392 $ Net income attributable to non-controlling interest in subsidiaries (2,124) Net income from continuing operations attributable to the Company $ 20,268 $ Denominator – Basic Income per Share: Weighted average common shares outstanding Income per share from continuing operations – Basic $ $ Denominator – Diluted Income per Share: Number of common shares used for basic income per share from continuing operations Weighted average effect of dilutive securities RSUs / PSUs Stock options Weighted average common shares outstanding Income per share from continuing operations – Diluted $ 0.16 $ 0.25 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | The tables below set forth net revenue by segment, and net revenue disaggregated by its source: Three Months Ended March 31, (in $ thousands) 2019 2018 Travel Solutions $ 573,158 $ 604,059 Payment Solutions 83,381 73,779 Net revenue $ 656,539 $ 677,838 Three Months Ended March 31, (in $ thousands) 2019 2018 Air $ 452,687 $ 472,935 Beyond Air 180,412 179,751 Travel Commerce Platform 633,099 652,686 Technology Services 23,440 25,152 Net revenue $ 656,539 $ 677,838 The table below sets forth Segment Adjusted EBITDA: Three Months Ended March 31, (in $ thousands) 2019 2018 Travel Solutions $ 150,856 $ 146,506 Payment Solutions 9,589 7,671 Segment Adjusted EBITDA $ 160,445 $ 154,177 |
Reconciles Net Income to Total Segment Adjusted EBITDA | The table below reconciles net income to total Segment Adjusted EBITDA: Three Months Ended March 31, (in $ thousands) 2019 2018 Net income $ 22,392 $ 59,231 Adjustments: Amortization of acquired intangible assets 10,165 10,166 Loss on early extinguishment of debt 17 27,661 Equity-based compensation and related taxes 3,887 4,833 Corporate and restructuring costs 4,393 1,215 Impairment of long-lived assets 3,968 491 Income from discontinued operations — (27,747) Depreciation and amortization of property and equipment 43,761 38,398 Amortization of customer loyalty payments 16,454 22,343 Interest expense, net 27,046 25,365 Other expense 2,055 93 Provision for income taxes 28,050 3,491 Other – non-cash (1) (1,743) (11,363) Segment Adjusted EBITDA $ 160,445 $ 154,177 (1) Includes (i) unrealized gains on foreign currency derivatives contracts of $6 million and $1 million for the three months ended March 31, 2019 and 2018, respectively, (ii) unrealized losses (gains) on interest rate derivative contracts of $8 million and $(10) million for the three months ended March 31, 2019 and 2018, respectively, and (iii) other income of $3 million for the three months ended March 31, 2019. |
Basis of Presentation and the_2
Basis of Presentation and the Merger (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2019segmentcountry | Dec. 09, 2018$ / shares | |
Basis of Presentation [Abstract] | ||
Number Of Countries And Territories Company Has Presence In | country | 180 | |
Number of Operating Segments | segment | 2 | |
Per Share Price | $ / shares | $ 15.75 |
Recently Issued Accounting Pr_3
Recently Issued Accounting Pronouncements (Leases) (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 |
Operating lease right-of-use assets | $ 57,301 | |
operating lease liabilities | $ 70,092 | |
ASU 2016-02 | ||
Operating lease right-of-use assets | $ 61,000 | |
operating lease liabilities | 74,000 | |
Deferred rent for leases | $ 13,000 |
Revenue (Revenue Disaggregated
Revenue (Revenue Disaggregated by Revenue Source) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 656,539 | $ 677,838 |
Net Revenue, Other Than From Contracts With Customers | 15,000 | 18,000 |
Travel Commerce Platform Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 633,099 | 652,686 |
Net Revenue, Other Than From Contracts With Customers | 15,000 | 18,000 |
Air Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 452,687 | 472,935 |
Beyond Air Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 180,412 | 179,751 |
Technology Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 23,440 | $ 25,152 |
Revenue (Revenue Disaggregate_2
Revenue (Revenue Disaggregated by Segment) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Number of Operating Segments | segment | 2 | |
Revenues | $ 656,539 | $ 677,838 |
Travel Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 573,158 | 604,059 |
Payment Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 83,381 | $ 73,779 |
Revenue (Revenue Disaggregate_3
Revenue (Revenue Disaggregated by Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | $ 656,539 | $ 677,838 |
Net Revenue, Other Than From Contracts With Customers | 15,000 | 18,000 |
Travel Commerce Platform Revenue [Member] | ||
Revenues | 633,099 | 652,686 |
Net Revenue, Other Than From Contracts With Customers | 15,000 | 18,000 |
Travel Commerce Platform Revenue [Member] | International | ||
Revenues | 495,483 | 494,958 |
Travel Commerce Platform Revenue [Member] | Asia Pacific | ||
Revenues | 158,664 | 141,551 |
Travel Commerce Platform Revenue [Member] | Europe | ||
Revenues | 218,947 | 244,442 |
Travel Commerce Platform Revenue [Member] | Latin America And Canada | ||
Revenues | 33,125 | 29,859 |
Travel Commerce Platform Revenue [Member] | Middle East And Africa | ||
Revenues | 84,747 | 79,106 |
Travel Commerce Platform Revenue [Member] | United States | ||
Revenues | $ 137,616 | $ 157,728 |
Revenue (Opening and closing ba
Revenue (Opening and closing balances of accounts receivables, contract assets and current and long term contract liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue [Abstract] | ||
Accounts Receivable | $ 213,474 | $ 167,447 |
Accounts Receivable, Increase (Decrease) | 46,027 | |
Deferred Revenue, Current | 14,918 | 14,449 |
Deferred Revenue Current, Increase (Decrease) | 469 | |
Deferred Revenue, Noncurrent | 7,171 | $ 7,462 |
Deferred Revenue Non-Current, Increase (Decrease) | $ (291) |
Revenue (Remaining Performance
Revenue (Remaining Performance Obligations) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Revenue [Abstract] | ||
Net Revenue Recognized Offsetting Performance Obligations | $ 5 | |
Revenue, Remaining Performance Obligation | $ 47 | |
Revenue, Remaining Performance Obligation, Expected Recognized Revenue Next 24 Months | 82.00% | |
Revenue, Remaining Performance Obligation, Expected Recognized Revenue Next 12 Months | 52.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | $ 17 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 208 | ||
Deferred Tax Asset, Intra-entity Transfer, Asset Other than Inventory | 101 | ||
Operating Loss Carryforwards, Valuation Allowance | 186 | ||
Federal | |||
NOL carry forwards | $ 399 | ||
Operating loss carry forwards expiration year, minimum | 2030 | ||
Operating loss carry forwards expiration year, maximum | 2037 | ||
State | |||
Operating loss carry forwards expiration year, minimum | 2019 | ||
Operating loss carry forwards expiration year, maximum | 2038 | ||
State NOL carry forwards, alternative minimum tax, and other tax credits carry forwards | $ 28 | ||
Other non-U.S. | |||
NOL carry forwards | $ 393 | ||
Operating loss carry forward expiration period | between three years and indefinitely | ||
United Kingdom | |||
Amount recognized for uncertain tax position, UK NOL Carry forwards | $ 10 | ||
Realized Benefit Related To Release Of Valuation Allowance On Deferred Tax Assets | $ 10 |
Other Current Assets (Summary o
Other Current Assets (Summary of Other Current Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 29,226 | $ 27,768 |
Sales and use tax receivables | 33,853 | 40,679 |
Prepaid incentives | 18,403 | 11,224 |
Client funds | 20,220 | 14,316 |
Derivative assets | 4,617 | 9,700 |
Other | 8,756 | 9,918 |
Other current assets, Total | $ 115,075 | $ 113,605 |
Property and Equipment, Net (Su
Property and Equipment, Net (Summary of Property and Equipment, Net) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 1,496,802 | $ 1,464,021 |
Accumulated Depreciation | (1,009,566) | (968,322) |
Net | 487,236 | 495,699 |
Capitalized Software | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,058,612 | 989,410 |
Accumulated Depreciation | (816,579) | (787,544) |
Net | 242,033 | 201,866 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 118,723 | 120,673 |
Accumulated Depreciation | (92,208) | (89,716) |
Net | 26,515 | 30,957 |
Finance lease right-of-use assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 215,596 | 215,065 |
Accumulated Depreciation | (84,800) | (75,780) |
Net | 130,796 | 139,285 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 32,579 | 32,235 |
Accumulated Depreciation | (15,979) | (15,282) |
Net | 16,600 | 16,953 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 71,292 | 106,638 |
Net | $ 71,292 | $ 106,638 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 44 | $ 38 |
Intangible Assets (Changes in C
Intangible Assets (Changes in Carrying Amount of Goodwill and Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill | ||
Goodwill, Beginning Balance | $ 1,083,766 | $ 1,089,590 |
Goodwill, Foreign Exchange | (685) | 925 |
Goodwill, Ending Balance | 1,083,081 | 1,090,515 |
Trademarks and tradenames | ||
Trademarks and tradenames, Beginning Balance | 313,097 | 313,097 |
Trademarks and tradenames, Ending Balance | 313,097 | 313,097 |
Other Intangible Assets: | ||
Other intangible assets, net, Beginning Balance | 423,512 | 496,180 |
Other intangible assets, net, Additions | (8,153) | 12,617 |
Other intangible assets, net, Retirements | (7,521) | (236) |
Other intangible assets, net, Foreign Exchange | 334 | 1,139 |
Other intangible assets, net, Ending Balance | 408,172 | 509,700 |
Acquired Intangible Assets [Member] | ||
Other Intangible Assets: | ||
Total other intangible assets, Beginning Balance | 743,317 | 743,549 |
Total other intangible assets, Foreign Exchange | (9) | 6 |
Total other intangible assets, Ending Balance | 743,308 | 743,555 |
Accumulated amortization, Beginning Balance | (502,019) | (461,666) |
Accumulated amortization, Additions | (10,165) | (10,166) |
Accumulated amortization, Foreign Exchange | 6 | (32) |
Accumulated amortization, Ending Balance | (512,178) | (471,864) |
Other intangible assets, net, Beginning Balance | 241,298 | 281,883 |
Other intangible assets, net, Additions | (10,165) | (10,166) |
Other intangible assets, net, Foreign Exchange | (3) | (26) |
Other intangible assets, net, Ending Balance | 231,130 | 271,691 |
Customer Loyalty Payments [Member] | ||
Other Intangible Assets: | ||
Total other intangible assets, Beginning Balance | 370,851 | 380,841 |
Total other intangible assets, Additions | 24,235 | 45,126 |
Total other intangible assets, Retirements | (39,245) | (10,551) |
Total other intangible assets, Foreign Exchange | 698 | 2,008 |
Total other intangible assets, Ending Balance | 356,539 | 417,424 |
Accumulated amortization, Beginning Balance | (188,637) | (166,544) |
Accumulated amortization, Additions | (22,223) | (22,343) |
Accumulated amortization, Retirements | 31,724 | 10,315 |
Accumulated amortization, Foreign Exchange | (361) | (843) |
Accumulated amortization, Ending Balance | (179,497) | (179,415) |
Other intangible assets, net, Beginning Balance | 182,214 | 214,297 |
Other intangible assets, net, Additions | 2,012 | 22,783 |
Other intangible assets, net, Retirements | (7,521) | (236) |
Other intangible assets, net, Foreign Exchange | 337 | 1,165 |
Other intangible assets, net, Ending Balance | $ 177,042 | $ 238,009 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ||||
Goodwill | $ 1,083,081 | $ 1,090,515 | $ 1,083,766 | $ 1,089,590 |
Customer loyalty payments in cash | 18,046 | 27,366 | ||
Amortization expense | 10,165 | 10,166 | ||
Payment Solutions [Member] | ||||
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ||||
Goodwill | 7,000 | 7,000 | ||
Customer Loyalty Payments [Member] | ||||
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ||||
Amount payable for customer loyalty payments | 48,000 | $ 52,000 | ||
Amortization expense | 16,000 | 22,000 | ||
Impairment recognized during the period | 4,000 | |||
Derecognition of customer loyalty payment liability | 6,000 | |||
Finite Lived Intangible Assets Accumulated Amortization Addition | $ 22,223 | $ 22,343 |
Other Non-Current Assets (Summa
Other Non-Current Assets (Summary of Other Non-Current Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Prepaid incentives | $ 34,546 | $ 28,148 |
Pension assets | 8,249 | 6,828 |
Restricted cash | 201 | 2,506 |
Deferred financing costs | 3,410 | 3,379 |
Derivative assets | 1,416 | 1,517 |
Other | 12,324 | 12,936 |
Other non-current assets, Total | 60,146 | 55,314 |
Cash and cash equivalents | $ 247,725 | $ 213,001 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Summary of Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued commissions and incentives | $ 323,893 | $ 282,444 |
Deferred revenue and rebate obligations | 57,838 | 78,094 |
Accrued payroll and related | 58,733 | 55,221 |
Income tax payable | 25,058 | 16,996 |
Customer prepayments | 18,403 | 11,224 |
Derivative liabilities | 11,651 | 16,690 |
Accrued interest expense | 10,526 | 20,528 |
Pension and post-retirement benefit liabilities | 1,590 | 1,561 |
Other | 21,478 | 23,508 |
Accrued expenses and other current liabilities | $ 529,170 | $ 506,266 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Payables and Accruals [Abstract] | ||
Accrued customer loyalty payments | $ 48 | $ 52 |
Severance Costs | 1 | |
Severance Accrual | $ 8 | $ 16 |
Long-Term Debt (Summary of Long
Long-Term Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Finance lease liabilities | $ 129,306 | $ 136,729 |
Total debt | 2,239,522 | 2,252,034 |
Less: current portion | 59,238 | 57,497 |
Long-term debt | $ 2,180,284 | 2,194,537 |
Senior Secured Credit Agreement | Term Loans | Credit Agreement 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate description on variable rate | L+2.50% | |
Maturity | Mar. 1, 2025 | |
Long-term debt | $ 1,367,688 | 1,372,666 |
Senior Secured Credit Agreement | Revolving Credit Facility | Credit Agreement 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate description on variable rate | L+2.25% | |
Maturity | Sep. 1, 2022 | |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Variable interest rate percentage | 6.00% | |
Maturity | Mar. 1, 2026 | |
Long-term debt | $ 738,504 | 738,274 |
Other Indebtedness [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,024 | $ 4,365 |
Long-Term Debt (Summary of Lo_2
Long-Term Debt (Summary of Long-Term Debt) (Table Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Senior Secured Credit Agreement | Term Loans | Credit Agreement 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amounts of term loans | $ 1,380 | $ 1,385 |
Unamortized debt finance costs | 6 | 6 |
Unamortized debt discount | 6 | 6 |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Principal amounts of term loans | 745 | 745 |
Unamortized debt finance costs | $ 6 | $ 7 |
Debt Instrument, Basis Spread on Variable Rate | 6.00% |
Long-Term Debt (Senior Secured
Long-Term Debt (Senior Secured Credit Agreement) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Gains (Losses) on Extinguishment of Debt | $ (17) | $ (27,661) | |
Repayments of Other Debt | 263 | 591 | |
Loss on early extinguishment of debt | (17) | (27,661) | |
Senior Secured Credit Agreement | Credit Agreement 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Amortization of debt finance costs | 1,000 | ||
Repayments of Senior Debt | $ 6,000 | ||
Collateral As A Percentage Of Aggregate Amount Available To Be Drawn | 103.00% | ||
Senior Secured Credit Agreement | Credit Agreement 2018 [Member] | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 2.50% | ||
Senior Secured Credit Agreement | Credit Agreement 2018 [Member] | Base Rate | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 1.50% | ||
Senior Secured Credit Agreement | Term Loans | Credit Agreement 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Principal amounts of term loans | $ 1,380,000 | $ 1,385,000 | |
Debt Instrument, Description of Variable Rate Basis | L+2.50% | ||
Senior Secured Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000 | ||
Line Of Credit Facility, Utilized | $ 4,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 146,000 | ||
Senior Secured Credit Agreement | Revolving Credit Facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 2.25% | ||
Senior Secured Credit Agreement | Revolving Credit Facility | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 0.00% | ||
Senior Secured Credit Agreement | Revolving Credit Facility | Base Rate | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 1.25% | ||
Senior Secured Credit Agreement | Revolving Credit Facility | Credit Agreement 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | L+2.25% | ||
Senior Secured Credit Agreement | Letter Of Credit Sub Limit [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 |
Long-Term Debt (Senior Secure_2
Long-Term Debt (Senior Secured Notes) (Narrative) (Details) - Senior Secured Notes - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Principal amounts of term loans | $ 745 | $ 745 |
Variable interest rate percentage | 6.00% | |
Cash Purchase As A Percentage Of Aggregate Principal Amount | 101.00% |
Long-Term Debt (Finance Lease O
Long-Term Debt (Finance Lease Obligations) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Finance Lease Obligations | |||
Repayment of finance lease | $ 9,366 | $ 7,409 | |
Capital lease | 129,306 | $ 136,729 | |
Information technology asset | |||
Finance Lease Obligations | |||
Repayment of finance lease | 9,000 | ||
Capital lease | $ 2,000 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Derivatives, Fair Value [Line Items] | |
Net asset position related to derivative financial instruments | $ 9 |
Probability of default percentage | 11.00% |
Credit default recovery rate percentage, derivative assets | 75.00% |
Credit default recovery rate percentage, derivative liabilities | 65.00% |
Credit valuation adjustment for fair value derivatives | 15.00% |
Change in unobservable inputs percentage | 10.00% |
Term Loans | LIBOR | |
Derivatives, Fair Value [Line Items] | |
Interest rate | 2.65% |
Financial Instruments (Interest
Financial Instruments (Interest Rate Risk) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Instrument, Redemption, Period One [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 1,200,000 |
Derivative, Inception Date | Feb. 1, 2019 |
Derivative, Maturity Date | Feb. 1, 2020 |
Debt Instrument, Redemption, Period Two [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 400,000 |
Derivative, Inception Date | Feb. 1, 2020 |
Derivative, Maturity Date | Feb. 1, 2021 |
Debt Instrument, Redemption, Period Three [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 320,000 |
Derivative, Inception Date | Feb. 1, 2021 |
Derivative, Maturity Date | Feb. 1, 2022 |
LIBOR | Debt Instrument, Redemption, Period One [Member] | |
Derivative [Line Items] | |
Derivative, Average Variable Interest Rate | 2.1906% |
LIBOR | Debt Instrument, Redemption, Period Two [Member] | |
Derivative [Line Items] | |
Derivative, Average Variable Interest Rate | 2.1925% |
LIBOR | Debt Instrument, Redemption, Period Three [Member] | |
Derivative [Line Items] | |
Derivative, Average Variable Interest Rate | 3.0178% |
Financial Instruments (Summary
Financial Instruments (Summary of Fair Value of Company's Derivative Contracts) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Fair Value (Liability) | $ (11,651) | $ (16,690) |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Asset | 4,818 | 12,206 |
Fair Value (Liability) | (14,115) | (18,225) |
Interest rate swaps | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Asset | 4,130 | 8,622 |
Interest rate swaps | Derivatives not designated as hedging instruments | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Asset | 201 | 2,506 |
Interest rate swaps | Derivatives not designated as hedging instruments | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value (Liability) | (2,464) | (1,535) |
Foreign currency contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Asset | 487 | 1,078 |
Foreign currency contracts | Derivatives not designated as hedging instruments | Accrued Expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value (Liability) | $ (11,651) | $ (16,690) |
Financial Instruments (Notional
Financial Instruments (Notional Amounts of Derivative Contracts) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 1,920,000 | $ 3,320,000 |
Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 404,548 | $ 411,957 |
Financial Instruments (Summar_2
Financial Instruments (Summary of Reconciliation of Net Carrying Amount of Derivative Financial Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Fair Value Of Derivative Net [Roll Forward] | ||
Net derivative (liability) asset opening balance | $ (6,019) | $ 18,393 |
Total (loss) gain for the period included in net income | (7,630) | 16,281 |
proceeds from settlement of derivative contracts | 4,352 | |
Payment on settlement of derivative contracts | (6,093) | |
Net derivative asset (liability) closing balance | $ (9,297) | $ 28,581 |
Financial Instruments (Impact o
Financial Instruments (Impact of Changes in Fair Values of Derivatives) (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Amount of Gain (Loss) Recorded in Net Income | $ (7,630) | $ 16,281 |
Interest rate swaps | Interest expense, net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amount of Gain (Loss) Recorded in Net Income | (4,861) | 11,222 |
Foreign currency contracts | Selling, general and administrative [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amount of Gain (Loss) Recorded in Net Income | $ (2,769) | $ 5,059 |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Company's Other Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Of Financial Instruments [Line Items] | ||
Derivative liabilities | $ (11,651) | $ (16,690) |
Total debt | (2,239,522) | (2,252,034) |
Carrying Amount [Member] | Level 2 | ||
Fair Value Of Financial Instruments [Line Items] | ||
Derivative assets | 4,818 | 12,206 |
Derivative liabilities | (14,115) | (18,225) |
Total debt | (2,239,522) | (2,252,034) |
Fair Value [Member] | Level 2 | ||
Fair Value Of Financial Instruments [Line Items] | ||
Derivative assets | 4,818 | 12,206 |
Derivative liabilities | (14,115) | (18,225) |
Total debt | $ (2,316,134) | $ (2,249,481) |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Expected remaining term | 9 years |
Leases - Cost (Details)
Leases - Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease cost: | |
Amortization of right-of-use asset (included within Depreciation and amortization) | $ 10,432 |
Interest on finance lease liabilities (included within Interest expense, net) | 1,773 |
Operating lease cost | 3,909 |
Short-term lease cost | 209 |
Total lease cost | $ 16,323 |
Leases - Cashflows (Details)
Leases - Cashflows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash used in operating activities related to operating leases | $ 4,410 | |
Cash used in operating activities related to finance leases | 1,773 | |
Cash used in financing activities related to finance leases | 9,366 | $ 7,409 |
Right-to-use assets obtained in exchange for finance lease liabilities | $ 1,943 | $ 2,164 |
Weighted average remaining lease term – operating leases | 6 years 3 months 26 days | |
Weighted average remaining lease term – finance leases | 2 years 11 months 27 days | |
Weighted average discount rate – operating leases | 5.94% | |
Weighted average discount rate – finance leases | 5.21% |
Leases - Undiscounted Future Pa
Leases - Undiscounted Future Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating lease liabilities | ||
Remaining of 2019 | $ 12,973 | |
2020 | 14,969 | |
2021 | 13,419 | |
2022 | 10,964 | |
2023 | 9,620 | |
Thereafter | 24,350 | |
Total undiscounted future payments | 86,295 | |
Less: Interest costs included | (16,203) | |
Total lease liabilities | 70,092 | |
Less: current portion of lease liabilities | 12,664 | |
Long-term portion of lease liabilities | 57,428 | |
Finance lease liabilities | ||
Remaining of 2019 | 37,468 | |
2020 | 46,397 | |
2021 | 38,552 | |
2022 | 17,421 | |
2023 | 99 | |
Total undiscounted future payments | 139,937 | |
Less: Interest costs included | (10,631) | |
Total lease liabilities | 129,306 | $ 136,729 |
Less: current portion of lease liabilities | 44,146 | |
Long-term portion of lease liabilities | $ 85,160 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Outstanding purchase commitments | $ 68 |
Purchase obligation for next 12 months | 41 |
Morgan Stanley Merger [Member] | |
Merger Fees, Payable | 19 |
Merger Termination Fee, Payable | $ 62.3 |
Equity-Based Compensation (Summ
Equity-Based Compensation (Summary of Company's Equity Award Programs RSUs) (Details) - Restricted Share Units (RSU) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of RSUs | |
Beginning Balance | shares | 1,437,465 |
Vested | shares | (23,902) |
Forfeited | shares | (31,552) |
Ending Balance | shares | 1,382,011 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 13.71 |
Vested | $ / shares | 12.92 |
Forfeited | $ / shares | 13.56 |
Ending Balance | $ / shares | $ 13.73 |
Equity-Based Compensation (Su_2
Equity-Based Compensation (Summary of Company's Equity Award Programs) (Table Narrative) (Details) - Restricted Share Units (RSU) | 3 Months Ended |
Mar. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted share units and stock options, net share settlements | 11,026 |
Director [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Vested In Period, Delayed Distribution | 101,937 |
Equity-Based Compensation (Su_3
Equity-Based Compensation (Summary of activity of PSUs) (Details) - Performance Based Restricted Share Units [Member] | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of PSUs | |
Beginning Balance | 3,375,854 |
Forfeited | (63,448) |
Ending Balance | 3,312,406 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 14.23 |
Forfeited | $ / shares | 13.80 |
Ending Balance | $ / shares | $ 14.22 |
Estimated awards that will vest | 2,000,168 |
Equity-Based Compensation (Equi
Equity-Based Compensation (Equity-Based Compensation Expense Recognized in Consolidated Financial Statements) (Details) - Stock options $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Number of Options | |
Beginning Balance | shares | 1,423,104 |
Forfeited | shares | (14,453) |
Exercised | shares | (34,971) |
Expired | shares | (16,602) |
Ending Balance | shares | 1,357,078 |
Exercisable | shares | 906,603 |
Expected to vest | shares | 450,475 |
Weighted Average Exercise Price (in dollars) | |
Beginning Balance | $ / shares | $ 14.17 |
Forfeited | $ / shares | 13.23 |
Exercised | $ / shares | 13.25 |
Expired | $ / shares | 16 |
Ending Balance | $ / shares | 14.18 |
Exercisable | $ / shares | 14.63 |
Expected to vest | $ / shares | $ 13.28 |
Weighted Average Remaining Contractual Terms (in years) | |
Balance | 6 years 5 months 9 days |
Exercisable | 6 years 2 months 5 days |
Expected to vest | 6 years 11 months 19 days |
Aggregate Intrinsic Value (in $ thousands) | |
Balance | $ | $ 2,267 |
Exercisable | $ | 1,162 |
Expected to vest | $ | $ 1,105 |
Equity-Based Compensation (Narr
Equity-Based Compensation (Narrative 2 PSEs) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 09, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Future equity-based compensation expense | $ 18 | ||
Total equity-based compensation expense | 4 | $ 5 | |
Equity-based compensation expense net of tax | 3 | 4 | |
Income tax benefit related to equity-based compensation expense | $ 1 | $ 1 | |
Per Share Price | $ 15.75 |
Income Per Share (Summary of nu
Income Per Share (Summary of numerators and denominators used in the computation of basic and diluted income (loss) per share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator - Basic and Diluted income per Share: | ||
Net income from continuing operations | $ 22,392 | $ 31,484 |
Net income attributable to non-controlling interest in subsidiaries | (2,124) | (402) |
Net income from continuing operations attributable to the Company | $ 20,268 | $ 31,082 |
Denominator - Basic Income per Share: | ||
Weighted average common shares outstanding (in shares) | 126,508,036 | 125,428,257 |
Income per share from continuing operations - Basic (in dollars per share) | $ 0.16 | $ 0.25 |
Denominator - Diluted Income per Share: | ||
Number of common shares used for basic income per share from continuing operations | 126,508,036 | 125,428,257 |
Weighted average effect of dilutive securities | ||
RSUs / PSUs | 1,640,285 | 604,051 |
Stock options | 72,061 | 98,893 |
Weighted average common shares outstanding (in shares) | 128,220,382 | 126,131,201 |
Income per share from continuing operations – Diluted | $ 0.16 | $ 0.25 |
Income Per Share (Narrative) (D
Income Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common share equivalents excluded from the calculation of diluted income per share | 1 | 2 |
Segment and Geographical Info_3
Segment and Geographical Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 2 |
Segment and Geographical Info_4
Segment and Geographical Information - Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 656,539 | $ 677,838 |
Adjusted EBITDA | 160,445 | 154,177 |
Travel Commerce Platform Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 633,099 | 652,686 |
Air Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 452,687 | 472,935 |
Beyond Air Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 180,412 | 179,751 |
Technology Services, Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 23,440 | 25,152 |
Travel Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 573,158 | 604,059 |
Adjusted EBITDA | 150,856 | 146,506 |
Payment Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 83,381 | 73,779 |
Adjusted EBITDA | $ 9,589 | $ 7,671 |
Segment and Geographical Info_5
Segment and Geographical Information - Total Segment Adjusted EBITDA Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting [Abstract] | ||
Net income | $ 22,392 | $ 59,231 |
Amortization of acquired intangible assets | 10,165 | 10,166 |
Loss on early extinguishment of debt | 17 | 27,661 |
Equity-based compensation and related taxes | 3,887 | 4,833 |
Corporate and restructuring costs | 4,393 | 1,215 |
Impairment of long-lived assets | 3,968 | 491 |
Income from discontinued operations | (27,747) | |
Depreciation and amortization of property and equipment | 43,761 | 38,398 |
Amortization of customer loyalty payments | 16,454 | 22,343 |
Interest expense, net | 27,046 | 25,365 |
Other expense | 2,055 | 93 |
Provision for income taxes | 28,050 | 3,491 |
Other - non-cash | (1,743) | (11,363) |
Adjusted EBITDA | 160,445 | 154,177 |
Unrealized gains on foreign currency derivatives contracts | 4,448 | (242) |
Unrealized losses (gains) on interest rate derivative contracts | (7,727) | $ 10,430 |
Other income | $ 3,000 |