Travelport LTD - 10-K filing on 2014-03-10

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Gross Fair Value of Company's Derivative Contracts

Presented below is a summary of the gross fair value of the Company’s derivative contracts recorded on the consolidated balance sheets at fair value.


		Fair Value Asset					Fair Valve (Liability)
(in $ millions)	Balance Sheet Location	December 31, 2013		December 31, 2012		Balance Sheet Location	December 31, 2013			December 31, 2012
Derivatives designated as hedging instruments:
Interest rate caps	Other non-current assets		8		—	Accrued expenses and other current liabilities		—			—
Derivatives not designated as hedging instruments:
Interest rate swaps	Other current assets		—		—	Accrued expenses and other current liabilities		—			(3	)
Foreign currency contracts	Other current assets		3		10	Accrued expenses and other current liabilities		(1	)		(1	)
Foreign currency contracts	Other non-current assets		—		5	Other non-current liabilities		—			—

Total fair value of derivative assets (liabilities)			11		15			(1	)		(4	)

Summary of Notional Amounts of Derivative Contracts

As of December 31, 2013, the notional amounts of the above derivative contracts were as follows:


(in $ millions)	Amount
Interest rate caps		2,330
Foreign currency options		219
Foreign currency forwards		158

Summary of Reconciliation of Net Carrying Amount of Derivative Financial Instruments

The following table provides a reconciliation of the movement in the net carrying amount of derivative financial instruments during the year ended December 31, 2013.


(in $ millions)	Amount
Net derivative asset as of January 1, 2013		11
Loss for the period included in net loss		(7	)
Loss for the period included in other comprehensive income (loss)		(4	)
Premium paid for interest rate cap derivative contracts		12
Proceeds from settlement of foreign currency derivative contracts hedging debt instruments, net		(3	)
Settlement of foreign currency derivative contracts and interest rate swaps, net		4
Termination of foreign currency derivative contracts (settlement pending)		(3	)

Net derivative asset as of December 31, 2013		10

Impact of Changes in Fair Values of Derivatives

The table below presents the impact that changes in fair values of derivatives designated as hedges had on accumulated other comprehensive income (loss) and income (loss) during the year and the impact derivatives not designated as hedges had on income (loss) during that year.


	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)								Amount of Gain (Loss) Recorded into Income (Loss)
	Year Ended December 31,							Location of Gain (Loss) Recorded in Income (Loss)	Year Ended December 31,
(in $ millions)	2013			2012		2011		Location of Gain (Loss) Recorded in Income (Loss)	2013			2012			2011
Derivatives designated as hedging instruments:
Interest rate caps		(4	)		—		—	Interest expense, net		—			—			—
Interest rate swaps		—			—		—	Interest expense, net		—			—			(9	)
Derivatives not designated as hedging instruments:
Interest rate swaps								Interest expense, net		(3	)		(4	)		(4	)
Foreign exchange impact of cross currency swaps								Selling, general and administrative		—			—			14
Foreign currency contracts								Selling, general and administrative		(4	)		—			(16	)

										(7	)		(4	)		(15	)

Fair Values of Company's Other Financial Instruments

The fair values of the Company’s other financial instruments are as follows:


			December 31, 2013						December 31, 2012
(in $ millions)	Fair Value Hierarchy		Carrying Amount			Fair Value			Carrying Amount			Fair Value
Asset (liability)
Investment in Orbitz Worldwide		Level 1		19			349			—			133
Derivative assets		Level 2		11			11			15			15
Derivative liabilities		Level 2		(1	)		(1	)		(4	)		(4	)
Total debt		Level 2		(3,573	)		(3,693	)		(3,430	)		(2,899	)