|| Effective July 1, 2001, we completed the sale of our Outsourcing
Business and also entered into agreements with EDS (i) for EDS to manage
our IT systems for 10 years (the IT Outsourcing Agreement) and
(ii) for us and EDS to jointly market certain IT services and software solutions
to the travel and transportation industries (the Marketing Agreements).
The results of operations of the Outsourcing Business have been reclassified
and presented as income from discontinued operations, net, for 2001, 2000,
1999 and 1998. Results of operations for 1997 have not been reclassified
for discontinued operations due to changes in our organizational structure
beginning in 1998 that limit our ability to accurately reclassify the results
of operations for 1997 and to present the Outsourcing Business as a discontinued
operation. Balance sheet and cash flow data have not been revised for the
effects of our sale of the Outsourcing Business.
||We have significant transactions with AMR and American
Airlines. The terms of many of the agreements with AMR and its affiliates
were revised in connection with AMR's divestiture of its entire ownership
interest in us in the first quarter of 2000.
||2001 and 2000 results of operations were impacted by our
merger and acquisition activities and the related goodwill amortization
expense associated with those transactions.
||Our results of operations for the year ended December 31,
2001, were negatively affected by a significant reduction in travel following
the September 11, 2001, terrorist attacks on the United States. While it
is difficult to quantify the amount of revenue lost as a direct result of
the attacks, we believe a reasonable estimate is $200 million. Certain initiatives
we undertook to aid our customers following the attacks negatively impacted
our results by approximately $16 million during 2001.
||Income from discontinued operations for the year ended
December 31, 2001, includes a gain of approximately $39 million, net of
related income taxes of approximately $25 million, recognized upon completion
of the sale of our Outsourcing Business to EDS effective July 1, 2001.
||On January 1, 2001, we adopted Statement of Financial Accounting
Standards No. 133, Accounting for Derivative Instruments and Hedging
|| CRS reservations for which we collect a booking fee.
||Includes direct reservations plus reservations processed
by joint-venture partners using the Sabre system.
||Earnings before interest, taxes, depreciation and amortization,
or EBITDA, from continuing operations consist of the sum of income from
continuing operations before provision for income taxes, net interest expense,
depreciation and amortization, and other income (expense), net. EBITDA is
not a measure of income or cash flows in accordance with generally accepted
accounting principles. EBITDA may not be comparable to other similarly titled
measures of other companies. EBITDA should not be considered in isolation
or as a substitute for net income, operating cash flow or any other measure
of financial performance prepared in accordance with generally accepted
accounting principles or as a measure of our profitability or liquidity.
EBITDA margin is calculated by dividing EBITDA by revenues from continuing
operations for the applicable period.
||For purposes of computing the ratio of earnings to fixed
charges, earnings consist of the sum of income from continuing operations
before income taxes and the cumulative effect of change in accounting method,
interest expense and the portion of rent expense deemed to represent interest.
Fixed charges consist of interest incurred, whether expensed or capitalized,
including amortization of debt issuance costs, if applicable, and the portion
of rent expense deemed to represent interest. Earnings for the year ended
December 31, 2001, were inadequate to cover fixed charges by $1.3 million.