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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Sabre Corporation | NASDAQ:SABR | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.05 | 1.60% | 3.18 | 3.17 | 3.18 | 3.20 | 3.13 | 3.13 | 323,244 | 15:19:11 |
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FORM 10-K
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Delaware
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001-36422
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20-8647322
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(State or other jurisdiction
of incorporation or organization)
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(Commission File Number)
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(I.R.S. Employer
Identification No.)
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3150 Sabre Drive
Southlake, TX 76092
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(Address, including zip code, of principal executive offices)
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(682) 605-1000
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(Registrant's telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act:
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Common Stock, $0.01 par value
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The NASDAQ Stock Market LLC
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(Title of class)
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(Name of exchange on which registered)
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Securities registered pursuant to Section 12(g) of the Act:
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None
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Large accelerated filer
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ý
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Page
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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Item 16.
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ITEM 1.
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BUSINESS
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•
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Commitment to develop innovative technology products through investment of significant resources in solutions that address key customer needs which include retailing solutions, mobile capabilities, data analytics and business intelligence and workflow optimization.
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•
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Geographic expansion beyond our traditional strengths by seeking to deepen our presence in high-growth geographies in Asia-Pacific ("APAC"), Europe, including high-growth Eastern European markets, and Latin America.
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Pursuit of new customers and marketplace content through seeking to actively add new travel supplier content to Travel Network and continuing to pursue new customers for our Airline Solutions and Hospitality Solutions business.
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Strengthen relationships with existing customers, including promoting the adoption of our products within and across our existing customers.
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ITEM 1A.
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RISK FACTORS
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•
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general and local economic conditions;
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•
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financial instability of travel suppliers and the impact of any fundamental corporate changes to such travel suppliers, such as airline bankruptcies or consolidations, on the cost and availability of travel content;
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factors that affect demand for travel such as outbreaks of contagious diseases, including influenza, Zika, Ebola and the MERS virus, increases in fuel prices, government shutdowns, changing attitudes towards the environmental costs of travel and safety concerns;
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political events like acts or threats of terrorism, hostilities, and war;
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inclement weather, natural or man-made disasters; and
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factors that affect supply of travel such as travel restrictions or changes to regulations governing airlines and the travel industry, like government sanctions that do or would prohibit doing business with certain state-owned travel suppliers, work stoppages or labor unrest at any of the major airlines, hotels or airports.
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•
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the features of the implemented software may not meet the expectations or fit the business model of the customer;
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our limited pool of trained experts for implementations cannot quickly and easily be augmented for complex implementation projects, such that resources issues, if not planned and managed effectively, could lead to costly project delays;
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customer-specific factors, such as the stability, functionality, interconnection and scalability of the customer’s pre-existing information technology infrastructure, as well as financial or other circumstances could destabilize, delay or prevent the completion of the implementation process, which, for airline reservations systems, typically takes 12 to 18 months; and
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•
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customers and their partners may not fully or timely perform the actions required to be performed by them to ensure successful implementation, including measures we recommend to safeguard against technical and business risks.
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Any of these providers fail to enable us to provide our customers and suppliers with reliable, real-time access to our systems. For example, in 2013, we experienced a significant outage of the Sabre platform due to a failure on the part of one of our service providers. This outage, which affected both our Travel Network business and our Airline Solutions business, lasted several hours and caused significant problems for our customers. Any such future outages could cause damage to our reputation, customer loss and require us to pay compensation to affected customers for which we may not be indemnified or compensated.
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•
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Our arrangements with such providers are terminated or impaired and we cannot find alternative sources of technology or systems support on commercially reasonable terms or on a timely basis. For example, our substantial dependence on DXC for many of our systems makes it difficult for us to switch vendors and makes us more sensitive to changes in DXC's pricing for its services.
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business, political and economic instability in foreign locations, including actual or threatened terrorist activities, and military action;
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adverse laws and regulatory requirements, including more comprehensive regulation in the E.U. and the possible effects of the Brexit vote;
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changes in foreign currency exchange rates and financial risk arising from transactions in multiple currencies;
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difficulty in developing, managing and staffing international operations because of distance, language and cultural differences;
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disruptions to or delays in the development of communication and transportation services and infrastructure;
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more restrictive data privacy requirements, including the GDPR;
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consumer attitudes, including the preference of customers for local providers;
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increasing labor costs due to high wage inflation in foreign locations, differences in general employment conditions and regulations, and the degree of employee unionization and activism;
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export or trade restrictions or currency controls;
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governmental policies or actions, such as consumer, labor and trade protection measures and travel restrictions;
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taxes, restrictions on foreign investment and limits on the repatriation of funds;
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diminished ability to legally enforce our contractual rights; and
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decreased protection for intellectual property.
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While we take reasonable steps to protect our brands and trademarks, we may not be successful in maintaining or defending our brands or preventing third parties from adopting similar brands. If our competitors infringe our principal trademarks, our brands may become diluted or if our competitors introduce brands or products that cause confusion with our brands or products in the marketplace, the value that our consumers associate with our brands may become diminished, which could negatively impact revenue.
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Our patent applications may not be granted, and the patents we own could be challenged, invalidated, narrowed or circumvented by others and may not be of sufficient scope or strength to provide us with any meaningful protection or commercial advantage. Once our patents expire, or if they are invalidated, narrowed or circumvented, our competitors may be able to utilize the technology protected by our patents which may adversely affect our business.
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Although we rely on copyright laws to protect the works of authorship created by us, we do not generally register the copyrights in our copyrightable works where such registration is permitted. Copyrights of U.S. origin must be registered before the copyright owner may bring an infringement suit in the United States. Accordingly, if one of our unregistered copyrights of U.S. origin is infringed by a third party, we will need to register the copyright before we can file an infringement suit in the United States, and our remedies in any such infringement suit may be limited.
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We use reasonable efforts to protect our trade secrets. However, protecting trade secrets can be difficult and our efforts may provide inadequate protection to prevent unauthorized use, misappropriation, or disclosure of our trade secrets, know how, or other proprietary information.
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We also rely on our domain names to conduct our online businesses. While we use reasonable efforts to protect and maintain our domain names, if we fail to do so the domain names may become available to others. Further, the regulatory bodies that oversee domain name registration may change their regulations in a way that adversely affects our ability to register and use certain domain names.
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•
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increased vulnerability to general adverse economic and industry conditions;
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higher interest expense if interest rates increase on our floating rate borrowings and our hedging strategies do not effectively mitigate the effects of these increases;
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need to divert a significant portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of cash to fund working capital, capital expenditures, acquisitions, investments and other general corporate purposes;
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limited ability to obtain additional financing, on terms we find acceptable, if needed, for working capital, capital expenditures, expansion plans and other investments, which may adversely affect our ability to implement our business strategy;
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limited flexibility in planning for, or reacting to, changes in our businesses and the markets in which we operate or to take advantage of market opportunities; and
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a competitive disadvantage compared to our competitors that have less debt.
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re-measurement gains and losses from changes in the value of foreign denominated assets and liabilities;
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translation gains and losses on foreign subsidiary financial results that are translated into U.S. dollars, our functional currency, upon consolidation;
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planning risk related to changes in exchange rates between the time we prepare our annual and quarterly forecasts and when actual results occur; and
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the impact of relative exchange rate movements on cross-border travel, principally travel between Europe and the United States.
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incur liens on our property, assets and revenue;
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borrow money, and guarantee or provide other support for the indebtedness of third parties;
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pay dividends or make other distributions on, redeem or repurchase our capital stock;
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prepay, redeem or repurchase certain of our indebtedness;
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enter into certain change of control transactions;
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make investments in entities that we do not control, including joint ventures;
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enter into certain asset sale transactions, including divestiture of certain company assets and divestiture of capital stock of wholly-owned subsidiaries;
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enter into certain transactions with affiliates;
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enter into secured financing arrangements;
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enter into sale and leaseback transactions;
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change our fiscal year; and
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enter into substantially different lines of business.
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ITEM 1B.
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UNRESOLVED STAFF COMMENTS
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ITEM 2.
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PROPERTIES
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ITEM 3.
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LEGAL PROCEEDINGS
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ITEM 4.
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MINE SAFETY DISCLOSURES
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Name
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Age
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Position
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Sean Menke
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50
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Chief Executive Officer, President and Director, Sabre
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Douglas Barnett
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59
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Executive Vice President and Chief Financial Officer, Sabre
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Clinton Anderson
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48
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Executive Vice President, Sabre and President, Hospitality Solutions
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Wade Jones
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52
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Executive Vice President, Sabre and President, Travel Network
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David Shirk
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52
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Executive Vice President, Sabre and President, Travel Solutions
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Richard Simonson
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60
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Senior Advisor
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Cem Tanyel
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50
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Executive Vice President, Sabre and President, Airline Solutions
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Kimberly Warmbier
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57
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Executive Vice President and Chief Human Resources Officer, Sabre
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ITEM 5.
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MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
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ITEM 6.
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SELECTED FINANCIAL DATA
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Year Ended December 31,
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2018
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2017
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2016
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2015
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2014
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Consolidated Statements of Operations Data:
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Revenue
(1)
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$
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3,866,956
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$
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3,598,484
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$
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3,373,387
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$
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2,960,896
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$
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2,631,417
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Operating income
(1)
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562,016
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493,440
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459,572
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459,769
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421,345
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Income from continuing operations
(1)
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340,921
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249,576
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241,390
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234,555
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110,873
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Income (loss) from discontinued operations, net of tax
(1)
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1,739
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(1,932
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)
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5,549
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314,408
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(38,918
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)
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Net income attributable to Sabre Corporation
(1)
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337,531
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242,531
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242,562
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545,482
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69,223
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Net income attributable to common stockholders
(1)
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337,531
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242,531
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242,562
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545,482
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57,842
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Net income per share attributable to common stockholders:
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Basic
(1)
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$
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1.23
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$
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0.87
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$
|
0.87
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$
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2.00
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$
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0.24
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Diluted
(1)
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$
|
1.22
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$
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0.87
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$
|
0.86
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$
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1.95
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$
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0.23
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Weighted-average common shares outstanding:
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Basic
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275,235
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276,893
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277,546
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273,139
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|
238,633
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|
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Diluted
|
277,518
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|
|
278,320
|
|
|
282,752
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|
|
280,067
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|
|
246,747
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|||||
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|
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Consolidated Statements of Cash Flows Data:
|
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Cash provided by operating activities
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$
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724,797
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|
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$
|
678,033
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|
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$
|
699,400
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|
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$
|
529,207
|
|
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$
|
387,659
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Cash used in investing activities
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(275,259
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)
|
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(317,525
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)
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(445,808
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)
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(729,041
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)
|
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(258,791
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)
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Cash (used in) provided by financing activities
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(306,506
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)
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(356,780
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)
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(190,025
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)
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93,144
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(71,945
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)
|
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Additions to property and equipment
|
283,940
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|
316,436
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|
327,647
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286,697
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227,227
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Cash payments for interest
|
156,041
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|
|
149,572
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|
|
151,495
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|
154,307
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|
197,782
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Other Financial Data:
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Adjusted Gross Profit
(1)
|
$
|
1,521,408
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$
|
1,500,186
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$
|
1,460,675
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$
|
1,316,820
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$
|
1,146,792
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Adjusted Operating Income
(1)
|
701,432
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|
706,149
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|
720,361
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653,105
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|
601,219
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Adjusted Net Income
(1)
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427,570
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|
390,118
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|
370,937
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|
308,072
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|
|
232,477
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Adjusted EBITDA
(1)
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1,124,390
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|
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1,078,571
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|
|
1,046,646
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|
|
941,587
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|
|
840,028
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Free Cash Flow
|
440,857
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|
|
361,597
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|
|
371,753
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|
|
242,510
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|
|
160,432
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Key Metrics:
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Travel Network
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|||||
Direct Billable Bookings - Air
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491,820
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|
|
462,381
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|
445,050
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|
|
384,309
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|
|
321,962
|
|
|||||
Direct Billable Bookings - Lodging, Ground and Sea
|
66,454
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|
|
62,443
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|
|
60,421
|
|
|
58,414
|
|
|
54,122
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|
|||||
Total Direct Billable Bookings
|
558,274
|
|
|
524,824
|
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|
505,471
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|
|
442,723
|
|
|
376,084
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|
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Airline Solutions Passengers Boarded
|
752,548
|
|
|
772,149
|
|
|
789,260
|
|
|
584,876
|
|
|
510,713
|
|
(1)
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In the first quarter of 2018, we adopted the comprehensive update to revenue recognition guidance, ASC 606, on a prospective basis from January 1, 2018. See Note 2. Revenue from Contracts with Customers, to our consolidated financial statements.
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As of December 31,
|
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|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Consolidated Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|||||
Cash and cash equivalents
|
$
|
509,265
|
|
|
$
|
361,381
|
|
|
$
|
364,114
|
|
|
$
|
321,132
|
|
|
$
|
155,679
|
|
Total assets
(1) (2)
|
5,806,381
|
|
|
5,649,364
|
|
|
5,724,570
|
|
|
5,393,627
|
|
|
4,643,073
|
|
|||||
Long-term debt
(2)
|
3,337,467
|
|
|
3,398,731
|
|
|
3,276,281
|
|
|
3,169,344
|
|
|
3,040,009
|
|
|||||
Working capital surplus (deficit)
(1) (2)
|
169,235
|
|
|
(11,455
|
)
|
|
(312,977
|
)
|
|
(222,400
|
)
|
|
(201,052
|
)
|
|||||
Noncontrolling interest
(1)
|
7,205
|
|
|
5,198
|
|
|
2,579
|
|
|
1,438
|
|
|
621
|
|
|||||
Total stockholders’ equity
(1)
|
974,271
|
|
|
698,500
|
|
|
625,615
|
|
|
484,140
|
|
|
84,383
|
|
(1)
|
In the first quarter of 2018, we adopted the comprehensive update to revenue recognition guidance, ASC 606, on a prospective basis from January 1, 2018. See Note 2. Revenue from Contracts with Customers, to our consolidated financial statements.
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Net income attributable to common stockholders
|
$
|
337,531
|
|
|
$
|
242,531
|
|
|
$
|
242,562
|
|
|
$
|
545,482
|
|
|
$
|
57,842
|
|
(Income) loss from discontinued operations, net of tax
|
(1,739
|
)
|
|
1,932
|
|
|
(5,549
|
)
|
|
(314,408
|
)
|
|
38,918
|
|
|||||
Net income attributable to noncontrolling interests
(1)
|
5,129
|
|
|
5,113
|
|
|
4,377
|
|
|
3,481
|
|
|
2,732
|
|
|||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,381
|
|
|||||
Income from continuing operations
|
340,921
|
|
|
249,576
|
|
|
241,390
|
|
|
234,555
|
|
|
110,873
|
|
|||||
Adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment and related charges
(2)
|
—
|
|
|
81,112
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Acquisition-related amortization
(3a)
|
68,008
|
|
|
95,860
|
|
|
143,425
|
|
|
108,121
|
|
|
99,383
|
|
|||||
Loss on extinguishment of debt
|
633
|
|
|
1,012
|
|
|
3,683
|
|
|
38,783
|
|
|
33,538
|
|
|||||
Other, net
(5)
|
8,509
|
|
|
(36,530
|
)
|
|
(27,617
|
)
|
|
(91,377
|
)
|
|
63,860
|
|
|||||
Restructuring and other costs
(6)
|
—
|
|
|
23,975
|
|
|
18,286
|
|
|
9,256
|
|
|
10,470
|
|
|||||
Acquisition-related costs
(7)
|
3,266
|
|
|
—
|
|
|
779
|
|
|
14,437
|
|
|
—
|
|
|||||
Litigation costs (reimbursements), net
(8)
|
8,323
|
|
|
(35,507
|
)
|
|
46,995
|
|
|
16,709
|
|
|
14,144
|
|
|||||
Stock-based compensation
|
57,263
|
|
|
44,689
|
|
|
48,524
|
|
|
29,971
|
|
|
20,094
|
|
|||||
Management fees
(9)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,701
|
|
|||||
Tax impact of net income adjustments
(10), (11)
|
(59,353
|
)
|
|
(34,069
|
)
|
|
(104,528
|
)
|
|
(52,383
|
)
|
|
(143,586
|
)
|
|||||
Adjusted Net Income from continuing operations
|
$
|
427,570
|
|
|
$
|
390,118
|
|
|
$
|
370,937
|
|
|
$
|
308,072
|
|
|
$
|
232,477
|
|
Adjusted Net Income from continuing operations per share
|
$
|
1.54
|
|
|
$
|
1.40
|
|
|
$
|
1.31
|
|
|
$
|
1.10
|
|
|
$
|
0.94
|
|
Diluted weighted-average common shares outstanding
|
277,518
|
|
|
278,320
|
|
|
282,752
|
|
|
280,067
|
|
|
246,747
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Net Income from continuing operations
|
427,570
|
|
|
390,118
|
|
|
370,937
|
|
|
308,072
|
|
|
232,477
|
|
|||||
Adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization of property and equipment
(3b)
|
303,612
|
|
|
264,880
|
|
|
233,303
|
|
|
213,520
|
|
|
157,592
|
|
|||||
Amortization of capitalized implementation costs
(3c)
|
41,724
|
|
|
40,131
|
|
|
37,258
|
|
|
31,441
|
|
|
35,859
|
|
|||||
Amortization of upfront incentive consideration
(4)
|
77,622
|
|
|
67,411
|
|
|
55,724
|
|
|
43,521
|
|
|
45,358
|
|
|||||
Interest expense, net
|
157,017
|
|
|
153,925
|
|
|
158,251
|
|
|
173,298
|
|
|
218,877
|
|
|||||
Remaining provision for income taxes
|
116,845
|
|
|
162,106
|
|
|
191,173
|
|
|
171,735
|
|
|
149,865
|
|
|||||
Adjusted EBITDA
|
1,124,390
|
|
|
1,078,571
|
|
|
1,046,646
|
|
|
941,587
|
|
|
840,028
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
413,344
|
|
|
400,871
|
|
|
413,986
|
|
|
351,480
|
|
|
289,630
|
|
|||||
Amortization of upfront incentive consideration
(4)
|
77,622
|
|
|
67,411
|
|
|
55,724
|
|
|
43,521
|
|
|
45,358
|
|
|||||
Acquisition related amortization
(3a)
|
(68,008
|
)
|
|
(95,860
|
)
|
|
(143,425
|
)
|
|
(106,519
|
)
|
|
(96,179
|
)
|
|||||
Adjusted Operating Income
|
$
|
701,432
|
|
|
$
|
706,149
|
|
|
$
|
720,361
|
|
|
$
|
653,105
|
|
|
$
|
601,219
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||
|
Travel
Network |
|
Airline
Solutions |
|
Hospitality
Solutions |
|
Corporate
|
|
Total
|
||||||||||
Operating income (loss)
|
$
|
753,255
|
|
|
111,146
|
|
|
$
|
12,881
|
|
|
$
|
(315,266
|
)
|
|
$
|
562,016
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative
|
160,298
|
|
|
73,675
|
|
|
33,626
|
|
|
245,927
|
|
|
513,526
|
|
|||||
Cost of revenue adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
106,877
|
|
|
170,258
|
|
|
36,826
|
|
|
27,692
|
|
|
341,653
|
|
|||||
Amortization of upfront incentive consideration
(4)
|
77,622
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77,622
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
26,591
|
|
|
26,591
|
|
|||||
Adjusted Gross Profit
|
1,098,052
|
|
|
355,079
|
|
|
83,333
|
|
|
(15,056
|
)
|
|
1,521,408
|
|
|||||
Selling, general and administrative
|
(160,298
|
)
|
|
(73,675
|
)
|
|
(33,626
|
)
|
|
(245,927
|
)
|
|
(513,526
|
)
|
|||||
Joint venture equity income
|
2,556
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,556
|
|
|||||
Selling, general and administrative adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
11,399
|
|
|
12,173
|
|
|
3,117
|
|
|
45,002
|
|
|
71,691
|
|
|||||
Acquisition-related costs
(7)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,266
|
|
|
3,266
|
|
|||||
Litigation costs
(8)
|
—
|
|
|
—
|
|
|
—
|
|
|
8,323
|
|
|
8,323
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
30,672
|
|
|
30,672
|
|
|||||
Adjusted EBITDA
|
951,709
|
|
|
293,577
|
|
|
52,824
|
|
|
(173,720
|
)
|
|
1,124,390
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
118,276
|
|
|
182,431
|
|
|
39,943
|
|
|
72,694
|
|
|
413,344
|
|
|||||
Amortization of upfront incentive consideration
(4)
|
77,622
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77,622
|
|
|||||
Acquisition-related amortization
(3a)
|
—
|
|
|
—
|
|
|
—
|
|
|
(68,008
|
)
|
|
(68,008
|
)
|
|||||
Adjusted Operating Income (Loss)
|
$
|
755,811
|
|
|
$
|
111,146
|
|
|
$
|
12,881
|
|
|
$
|
(178,406
|
)
|
|
$
|
701,432
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||||
|
Travel
Network |
|
Airline
Solutions |
|
Hospitality
Solutions |
|
Corporate
|
|
Total
|
||||||||||
Operating income (loss)
|
$
|
744,045
|
|
|
137,932
|
|
|
$
|
9,670
|
|
|
$
|
(398,207
|
)
|
|
$
|
493,440
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative
|
162,997
|
|
|
78,638
|
|
|
47,121
|
|
|
221,319
|
|
|
510,075
|
|
|||||
Impairment and related charges
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
81,112
|
|
|
81,112
|
|
|||||
Cost of revenue adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
96,796
|
|
|
149,685
|
|
|
31,686
|
|
|
39,645
|
|
|
317,812
|
|
|||||
Restructuring and other costs
(6)
|
—
|
|
|
—
|
|
|
—
|
|
|
12,604
|
|
|
12,604
|
|
|||||
Amortization of upfront incentive consideration
(4)
|
67,411
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,411
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
17,732
|
|
|
17,732
|
|
|||||
Adjusted Gross Profit
|
1,071,249
|
|
|
366,255
|
|
|
88,477
|
|
|
(25,795
|
)
|
|
1,500,186
|
|
|||||
Selling, general and administrative
|
(162,997
|
)
|
|
(78,638
|
)
|
|
(47,121
|
)
|
|
(221,319
|
)
|
|
(510,075
|
)
|
|||||
Joint venture equity income
|
2,580
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,580
|
|
|||||
Selling, general and administrative adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
12,783
|
|
|
8,820
|
|
|
1,428
|
|
|
60,028
|
|
|
83,059
|
|
|||||
Restructuring and other costs
(6)
|
—
|
|
|
—
|
|
|
—
|
|
|
11,371
|
|
|
11,371
|
|
|||||
Litigation reimbursements
(8)
|
—
|
|
|
—
|
|
|
—
|
|
|
(35,507
|
)
|
|
(35,507
|
)
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
26,957
|
|
|
26,957
|
|
|||||
Adjusted EBITDA
|
923,615
|
|
|
296,437
|
|
|
42,784
|
|
|
(184,265
|
)
|
|
1,078,571
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
109,579
|
|
|
158,505
|
|
|
33,114
|
|
|
99,673
|
|
|
400,871
|
|
|||||
Amortization of upfront incentive consideration
(4)
|
67,411
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,411
|
|
|||||
Acquisition-related amortization
(3a)
|
—
|
|
|
—
|
|
|
—
|
|
|
(95,860
|
)
|
|
(95,860
|
)
|
|||||
Adjusted Operating Income (Loss)
|
$
|
746,625
|
|
|
$
|
137,932
|
|
|
$
|
9,670
|
|
|
$
|
(188,078
|
)
|
|
$
|
706,149
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||
|
Travel
Network |
|
Airline
Solutions |
|
Hospitality
Solutions |
|
Corporate
|
|
Total
|
||||||||||
Operating income (loss)
|
$
|
735,354
|
|
|
136,177
|
|
|
$
|
16,807
|
|
|
$
|
(428,766
|
)
|
|
$
|
459,572
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative
|
165,520
|
|
|
74,048
|
|
|
33,867
|
|
|
352,718
|
|
|
626,153
|
|
|||||
Cost of revenue adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
82,963
|
|
|
144,697
|
|
|
21,823
|
|
|
37,870
|
|
|
287,353
|
|
|||||
Restructuring and other costs
(6)
|
—
|
|
|
—
|
|
|
—
|
|
|
12,660
|
|
|
12,660
|
|
|||||
Amortization of upfront incentive consideration
(4)
|
55,724
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,724
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
19,213
|
|
|
19,213
|
|
|||||
Adjusted Gross Profit
|
1,039,561
|
|
|
354,922
|
|
|
72,497
|
|
|
(6,305
|
)
|
|
1,460,675
|
|
|||||
Selling, general and administrative
|
(165,520
|
)
|
|
(74,048
|
)
|
|
(33,867
|
)
|
|
(352,718
|
)
|
|
(626,153
|
)
|
|||||
Joint venture equity income
|
2,780
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,780
|
|
|||||
Selling, general and administrative adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
9,809
|
|
|
5,488
|
|
|
1,334
|
|
|
110,002
|
|
|
126,633
|
|
|||||
Restructuring and other costs
(6)
|
—
|
|
|
—
|
|
|
—
|
|
|
5,626
|
|
|
5,626
|
|
|||||
Acquisition-related costs
(7)
|
—
|
|
|
—
|
|
|
—
|
|
|
779
|
|
|
779
|
|
|||||
Litigation costs
(8)
|
—
|
|
|
—
|
|
|
—
|
|
|
46,995
|
|
|
46,995
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
29,311
|
|
|
29,311
|
|
|||||
Adjusted EBITDA
|
886,630
|
|
|
286,362
|
|
|
39,964
|
|
|
(166,310
|
)
|
|
1,046,646
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
92,772
|
|
|
150,185
|
|
|
23,157
|
|
|
147,872
|
|
|
413,986
|
|
|||||
Amortization of upfront incentive consideration
(4)
|
55,724
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,724
|
|
|||||
Acquisition-related amortization
(3a)
|
—
|
|
|
—
|
|
|
—
|
|
|
(143,425
|
)
|
|
(143,425
|
)
|
|||||
Adjusted Operating Income (Loss)
|
$
|
738,134
|
|
|
$
|
136,177
|
|
|
$
|
16,807
|
|
|
$
|
(170,757
|
)
|
|
$
|
720,361
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||
|
Travel
Network |
|
Airline Solutions
|
|
Hospitality
Solutions |
|
Corporate
|
|
Total
|
||||||||||
Operating income (loss)
|
$
|
679,045
|
|
|
$
|
134,660
|
|
|
$
|
6,236
|
|
|
$
|
(360,172
|
)
|
|
$
|
459,769
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative
|
156,775
|
|
|
68,730
|
|
|
30,387
|
|
|
301,185
|
|
|
557,077
|
|
|||||
Cost of revenue adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
71,003
|
|
|
134,811
|
|
|
16,313
|
|
|
22,408
|
|
|
244,535
|
|
|||||
Amortization of upfront incentive consideration
(4)
|
43,521
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,521
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
11,918
|
|
|
11,918
|
|
|||||
Adjusted Gross Profit
|
950,344
|
|
|
338,201
|
|
|
52,936
|
|
|
(24,661
|
)
|
|
1,316,820
|
|
|||||
Selling, general and administrative
|
(156,775
|
)
|
|
(68,730
|
)
|
|
(30,387
|
)
|
|
(301,185
|
)
|
|
(557,077
|
)
|
|||||
Joint venture equity income
|
14,842
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,842
|
|
|||||
Joint venture intangible amortization
(3a)
|
1,602
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,602
|
|
|||||
Selling, general and administrative adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
8,900
|
|
|
5,939
|
|
|
903
|
|
|
91,203
|
|
|
106,945
|
|
|||||
Restructuring and other costs
(6)
|
—
|
|
|
—
|
|
|
—
|
|
|
9,256
|
|
|
9,256
|
|
|||||
Acquisition-related costs
(7)
|
—
|
|
|
—
|
|
|
—
|
|
|
14,437
|
|
|
14,437
|
|
|||||
Litigation costs
(8)
|
—
|
|
|
—
|
|
|
—
|
|
|
16,709
|
|
|
16,709
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
18,053
|
|
|
18,053
|
|
|||||
Adjusted EBITDA
|
818,913
|
|
|
275,410
|
|
|
23,452
|
|
|
(176,188
|
)
|
|
941,587
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
(3)
|
79,903
|
|
|
140,750
|
|
|
17,216
|
|
|
113,611
|
|
|
351,480
|
|
|||||
Amortization of upfront incentive consideration
(4)
|
43,521
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,521
|
|
|||||
Acquisition-related amortization
(3a)
|
1,602
|
|
|
—
|
|
|
—
|
|
|
(108,121
|
)
|
|
(106,519
|
)
|
|||||
Adjusted Operating Income (Loss)
|
$
|
693,887
|
|
|
$
|
134,660
|
|
|
$
|
6,236
|
|
|
$
|
(181,678
|
)
|
|
$
|
653,105
|
|
|
Year Ended December 31, 2014
(a)
|
||||||||||||||
|
Travel
Network |
|
Airline and
Hospitality Solutions |
|
Corporate
|
|
Total
|
||||||||
Operating income (loss)
|
$
|
657,326
|
|
|
$
|
176,730
|
|
|
$
|
(412,711
|
)
|
|
$
|
421,345
|
|
Add back:
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative
|
102,059
|
|
|
56,195
|
|
|
309,340
|
|
|
467,594
|
|
||||
Cost of revenue adjustments:
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization
(3)
|
58,533
|
|
|
104,926
|
|
|
34,950
|
|
|
198,409
|
|
||||
Amortization of upfront incentive consideration
(4)
|
45,358
|
|
|
—
|
|
|
—
|
|
|
45,358
|
|
||||
Restructuring and other costs
(6)
|
—
|
|
|
—
|
|
|
6,042
|
|
|
6,042
|
|
||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
8,044
|
|
|
8,044
|
|
||||
Adjusted Gross Profit
|
863,276
|
|
|
337,851
|
|
|
(54,335
|
)
|
|
1,146,792
|
|
||||
Selling, general and administrative
|
(102,059
|
)
|
|
(56,195
|
)
|
|
(309,340
|
)
|
|
(467,594
|
)
|
||||
Joint venture equity income
|
12,082
|
|
|
—
|
|
|
—
|
|
|
12,082
|
|
||||
Joint venture intangible amortization
(3a)
|
3,204
|
|
|
—
|
|
|
—
|
|
|
3,204
|
|
||||
Selling, general and administrative adjustments:
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization
(3)
|
2,174
|
|
|
992
|
|
|
88,055
|
|
|
91,221
|
|
||||
Restructuring and other costs
(6)
|
—
|
|
|
—
|
|
|
4,428
|
|
|
4,428
|
|
||||
Litigation costs
(8)
|
—
|
|
|
—
|
|
|
14,144
|
|
|
14,144
|
|
||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
12,050
|
|
|
12,050
|
|
||||
Management fees
(9)
|
—
|
|
|
—
|
|
|
23,701
|
|
|
23,701
|
|
||||
Adjusted EBITDA
|
778,677
|
|
|
282,648
|
|
|
(221,297
|
)
|
|
840,028
|
|
||||
Less:
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization
(3)
|
60,707
|
|
|
105,918
|
|
|
123,005
|
|
|
289,630
|
|
||||
Amortization of upfront incentive consideration
(4)
|
45,358
|
|
|
—
|
|
|
—
|
|
|
45,358
|
|
||||
Acquisition-related amortization
(3a)
|
3,204
|
|
|
—
|
|
|
(99,383
|
)
|
|
(96,179
|
)
|
||||
Adjusted Operating Income (Loss)
|
$
|
669,408
|
|
|
$
|
176,730
|
|
|
$
|
(244,919
|
)
|
|
$
|
601,219
|
|
(a)
|
For the year ended December 31, 2014, recasted amounts for the reportable segments and the allocation changes effective January 1, 2018 are not presented as management does not believe the presentation of these impacts is material to the understanding of current operations.
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Cash provided by operating activities
|
$
|
724,797
|
|
|
$
|
678,033
|
|
|
$
|
699,400
|
|
|
$
|
529,207
|
|
|
$
|
387,659
|
|
Cash used in investing activities
|
(275,259
|
)
|
|
(317,525
|
)
|
|
(445,808
|
)
|
|
(729,041
|
)
|
|
(258,791
|
)
|
|||||
Cash provided by (used in) financing activities
|
(306,506
|
)
|
|
(356,780
|
)
|
|
(190,025
|
)
|
|
93,144
|
|
|
(71,945
|
)
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Cash provided by operating activities
|
$
|
724,797
|
|
|
$
|
678,033
|
|
|
$
|
699,400
|
|
|
$
|
529,207
|
|
|
$
|
387,659
|
|
Additions to property and equipment
|
(283,940
|
)
|
|
(316,436
|
)
|
|
(327,647
|
)
|
|
(286,697
|
)
|
|
(227,227
|
)
|
|||||
Free Cash Flow
|
$
|
440,857
|
|
|
$
|
361,597
|
|
|
$
|
371,753
|
|
|
$
|
242,510
|
|
|
$
|
160,432
|
|
(1)
|
Net income attributable to non-controlling interests represents an adjustment to include earnings allocated to non-controlling interest held in (i) Sabre Travel Network Middle East of 40% for all periods presented, (ii) Sabre Seyahat Dagitim Sistemleri A.S. of 40% beginning in April 2014, (iii) Abacus International Lanka Pte Ltd of 40% beginning in July 2015, and (iv) Sabre Bulgaria of 40% beginning in November 2017.
|
(2)
|
Impairment and related charges represents an $81 million charge in 2017 associated with net capitalized contract costs related to an Airline Solutions' customer based on our analysis of the recoverability of such amounts. See Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Factors Affecting our Results” for additional information.
|
(3)
|
Depreciation and amortization expenses:
|
a.
|
Acquisition-related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date. Also includes amortization of the excess basis in our underlying equity interest in the net assets of SAPPL prior to its acquisition on July 1, 2015.
|
b.
|
Depreciation and amortization of property and equipment includes software developed for internal use.
|
c.
|
Amortization of capitalized implementation costs represents amortization of upfront costs to implement new customer contracts under our SaaS and hosted revenue model.
|
(4)
|
Our Travel Network business at times provides upfront incentive consideration to travel agency subscribers at the inception or modification of a service contract, which are capitalized and amortized to cost of revenue over an average expected life of the service contract, generally over three to five years. This consideration is made with the objective of increasing the number of clients or to ensure or improve customer loyalty. These service contract terms are established such that the supplier and other fees generated over the life of the contract will exceed the cost of the incentive consideration provided up front. These service contracts with travel agency subscribers require that the customer commit to achieving certain economic objectives and generally have terms requiring repayment of the upfront incentive consideration if those objectives are not met.
|
(5)
|
In 2018, Other, net, includes an expense of $5 million related to our liability under the Tax Receivable Agreement ("TRA") and an offsetting gain of $8 million on the sale of an investment. In 2017, we recognized a benefit of $60 million due to a reduction to our liability under the TRA primarily due to a provisional adjustment resulting from the enactment of TCJA which reduced the U.S. corporate income tax rate, offset by a loss of $15 million related to debt modification costs associated with a debt refinancing. In 2016, we recognized a gain of $15 million from the sale of our available-for-sale marketable securities, and $6 million gain associated with the receipt of an earn-out payment related to the sale of a business in 2013. In 2015, we recognized a gain of $78 million associated with the remeasurement of our previously-held 35% investment in SAPPL to its fair value and a gain of $12 million related to the settlement of pre-existing agreements between us and SAPPL. In 2014, Other, net primarily includes a charge of $66 million as a result of an increase to our TRA liability. The increase in our TRA liability is due to a reduction in a valuation allowance maintained against our deferred tax assets. This charge is fully offset by an income tax benefit recognized in the fourth quarter of 2014 from the reduction in the valuation allowance which is included in tax impacts of net income adjustments. In addition, all periods presented include foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency. See Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Tax Receivable Agreement” for additional information regarding the TRA.
|
(6)
|
Restructuring and other costs represents charges associated with business restructuring and associated changes implemented which resulted in severance benefits related to employee terminations, integration and facility opening or closing costs and other business reorganization costs. We recorded $25 million and $20 million in charges associated with announced actions to reduce our workforce in 2017 and 2016, respectively. These reductions aligned our operations with business needs and implemented an ongoing cost and organizational structure consistent with our expected growth needs and opportunities. In 2015, we recognized a restructuring charge of $9 million associated with the integration of Abacus, and reduced that estimate by $4 million in 2016, as a result of the reevaluation of our plan derived from a shift in timing and strategy of originally contemplated actions. As of December 31, 2018, our actions under these activities were substantially completed and payments under the plans have been made.
|
(7)
|
Acquisition-related costs represent fees and expenses incurred associated with the 2018 agreement to acquire Farelogix, which is anticipated to close in 2019, and in 2016, the acquisition of the Trust Group and Airpas Aviation. See Note 3. Acquisitions, to our consolidated financial statements.
|
(8)
|
Litigation costs (reimbursements), net represent charges associated with antitrust and other foreign non-income tax contingency matters. In 2018, we recorded non-income tax expense of $4 million for tax, penalties and interest associated with certain non-income tax claims for historical periods regarding permanent establishment in a foreign jurisdiction. In 2017, we recorded a $43 million reimbursement, net of accrued legal and related expenses, from a settlement with our insurance carriers with respect to the American Airlines litigation. In 2016, we recorded an accrual of $32 million representing the trebling of the jury award plus our estimate of attorneys’ fees, expenses and costs in the US Airways litigation. See Note
15. Commitments and Contingencies
, to our consolidated financial statements.
|
(9)
|
We paid an annual management fee to TPG Global, LLC (“TPG”) and Silver Lake Management Company (“Silver Lake”) in an amount between (i) $5 million and (ii) $7 million, plus reimbursement of certain costs incurred by TPG and Silver Lake, pursuant to the management services agreement (the “MSA”). In addition, we paid a $21 million fee, in the aggregate, to TPG and Silver Lake in connection with our initial public offering in 2014. The MSA was terminated in conjunction with our initial public offering.
|
(10)
|
The tax impact on net income adjustments includes the tax effect of each separate adjustment based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible, and the tax effect of items that relate to tax specific financial transactions, tax law changes, uncertain tax positions and other items. In 2018, the tax impact on net income adjustments includes a benefit of $27 million recognized in the fourth quarter of 2018 related to the provisional impact for deferred taxes and foreign tax effects recorded for the enactment of the TCJA in 2017. In 2017, the tax impact on net income adjustments includes a provisional impact of $47 million recognized in the fourth quarter of 2017 as a result of the enactment of the TCJA in December 2017. In 2014, the tax impact on net income adjustments includes a $66 million benefit recognized from the reduction in a valuation allowance maintained against our deferred tax assets.
|
(11)
|
In the first quarter of 2016, we adopted Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting. For the year ended December 31, 2016, we recognized $35 million in excess tax benefits associated with employee equity-based awards, as a result of the adoption of this standard. There were no other material impacts to our consolidated financial statements as a result of adopting this updated standard.
|
•
|
these non-GAAP financial measures exclude certain recurring, non-cash charges such as stock-based compensation expense and amortization of acquired intangible assets
|
•
|
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted Gross Profit and Adjusted EBITDA do not reflect cash requirements for such replacements;
|
•
|
Adjusted Operating Income (Loss), Adjusted Net Income and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;
|
•
|
Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our indebtedness;
|
•
|
Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us;
|
•
|
Free Cash Flow removes the impact of accrual-basis accounting on asset accounts and non-debt liability accounts, and does not reflect the cash requirements necessary to service the principal payments on our indebtedness; and
|
•
|
other companies, including companies in our industry, may calculate Adjusted Gross Profit, Adjusted Operating Income (Loss), Adjusted Net Income, Adjusted EBITDA or Free Cash Flow differently, which reduces their usefulness as comparative measures.
|
ITEM 7.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Year Ended December 31,
|
|
% Change
|
|||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018 - 2017
|
|
2017 - 2016
|
|||||
Travel Network
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Billable Bookings - Air
|
491,820
|
|
|
462,381
|
|
|
445,050
|
|
|
6.4
|
%
|
|
3.9
|
%
|
Direct Billable Bookings - LGS
|
66,454
|
|
|
62,443
|
|
|
60,421
|
|
|
6.4
|
%
|
|
3.3
|
%
|
Total Direct Billable Bookings
|
558,274
|
|
|
524,824
|
|
|
505,471
|
|
|
6.4
|
%
|
|
3.8
|
%
|
Airline Solutions Passengers Boarded
|
752,548
|
|
|
772,149
|
|
|
789,260
|
|
|
(2.5
|
)%
|
|
(2.2
|
)%
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Revenue
|
$
|
3,866,956
|
|
|
$
|
3,598,484
|
|
|
$
|
3,373,387
|
|
Cost of revenue
|
2,791,414
|
|
|
2,513,857
|
|
|
2,287,662
|
|
|||
Selling, general and administrative
|
513,526
|
|
|
510,075
|
|
|
626,153
|
|
|||
Impairment and related charges
|
—
|
|
|
81,112
|
|
|
—
|
|
|||
Operating income
|
562,016
|
|
|
493,440
|
|
|
459,572
|
|
|||
Interest expense, net
|
(157,017
|
)
|
|
(153,925
|
)
|
|
(158,251
|
)
|
|||
Loss on extinguishment of debt
|
(633
|
)
|
|
(1,012
|
)
|
|
(3,683
|
)
|
|||
Joint venture equity income
|
2,556
|
|
|
2,580
|
|
|
2,780
|
|
|||
Other income, net
|
(8,509
|
)
|
|
36,530
|
|
|
27,617
|
|
|||
Income from continuing operations before income taxes
|
398,413
|
|
|
377,613
|
|
|
328,035
|
|
|||
Provision for income taxes
|
57,492
|
|
|
128,037
|
|
|
86,645
|
|
|||
Income from continuing operations
|
$
|
340,921
|
|
|
$
|
249,576
|
|
|
$
|
241,390
|
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2018
|
|
2017
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Travel Network
|
$
|
2,806,194
|
|
|
$
|
2,550,470
|
|
|
$
|
255,724
|
|
|
10
|
%
|
Airline Solutions
|
822,747
|
|
|
816,008
|
|
|
6,739
|
|
|
1
|
%
|
|||
Hospitality Solutions
|
273,079
|
|
|
258,352
|
|
|
14,727
|
|
|
6
|
%
|
|||
Total segment revenue
|
3,902,020
|
|
|
3,624,830
|
|
|
277,190
|
|
|
8
|
%
|
|||
Eliminations
|
(35,064
|
)
|
|
(26,346
|
)
|
|
(8,718
|
)
|
|
33
|
%
|
|||
Total revenue
|
$
|
3,866,956
|
|
|
$
|
3,598,484
|
|
|
$
|
268,472
|
|
|
7
|
%
|
•
|
a $3 million decrease in SabreSonic Passenger Reservation System revenue for the year ended
December 31, 2018
compared to the same period in the prior year. Passengers Boarded decreased by
3%
to
753 million
for the year ended
December 31, 2018
, driven by the termination of an agreement with Southwest Airlines related to services and processing for their legacy air reservation system at the end of the second quarter in 2017, which was at a lower than average passengers boarded rate. This decrease was offset by an increase in volumes from consistent carrier growth of 5%, as well as the full implementation of LATAM Airlines Group S.A. Brasil in the second quarter of 2018;
|
•
|
a $16 million increase in AirVision and AirCentre commercial and operations solutions revenue driven primarily by newly implemented SaaS products and organic growth, as well as upfront license fee revenue from renewals and new implementations recognized upon delivery to the customer of $27 million. This increase was partially offset by other impacts related to the adoption of ASC 606 (see "Recent Developments Affecting our Results of Operations" above); and
|
•
|
a $6 million decrease in discrete professional service fees revenue, as a result of reduced sales compared to the prior period.
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2018
|
|
2017
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Travel Network
|
$
|
1,708,142
|
|
|
$
|
1,479,221
|
|
|
$
|
228,921
|
|
|
15
|
%
|
Airline Solutions
|
467,668
|
|
|
449,753
|
|
|
17,915
|
|
|
4
|
%
|
|||
Hospitality Solutions
|
189,746
|
|
|
169,877
|
|
|
19,869
|
|
|
12
|
%
|
|||
Eliminations
|
(35,065
|
)
|
|
(26,346
|
)
|
|
(8,719
|
)
|
|
33
|
%
|
|||
Total segment cost of revenue
|
2,330,491
|
|
|
2,072,505
|
|
|
257,986
|
|
|
12
|
%
|
|||
Corporate
|
41,648
|
|
|
56,129
|
|
|
(14,481
|
)
|
|
(26
|
)%
|
|||
Depreciation and amortization
|
341,653
|
|
|
317,812
|
|
|
23,841
|
|
|
8
|
%
|
|||
Amortization of upfront incentive consideration
|
77,622
|
|
|
67,411
|
|
|
10,211
|
|
|
15
|
%
|
|||
Total cost of revenue
|
$
|
2,791,414
|
|
|
$
|
2,513,857
|
|
|
$
|
277,557
|
|
|
11
|
%
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2018
|
|
2017
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Selling, general and administrative
|
$
|
513,526
|
|
|
$
|
510,075
|
|
|
$
|
3,451
|
|
|
1
|
%
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2018
|
|
2017
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Impairment and related charges
|
$
|
—
|
|
|
$
|
81,112
|
|
|
$
|
(81,112
|
)
|
|
100
|
%
|
|
Year Ended December 31,
|
|
|
|
|
||||||||
|
2018
|
|
2017
|
|
Change
|
||||||||
|
(Amounts in thousands)
|
|
|
|
|
||||||||
Other expense, net
|
$
|
8,509
|
|
|
$
|
(36,530
|
)
|
|
$
|
45,039
|
|
|
**
|
** not meaningful
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2018
|
|
2017
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Provision for income taxes
|
$
|
57,492
|
|
|
$
|
128,037
|
|
|
$
|
(70,545
|
)
|
|
(55
|
)%
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Travel Network
|
$
|
2,550,470
|
|
|
$
|
2,374,849
|
|
|
$
|
175,621
|
|
|
7
|
%
|
Airline Solutions
|
816,008
|
|
|
794,637
|
|
|
21,371
|
|
|
3
|
%
|
|||
Hospitality Solutions
|
258,352
|
|
|
224,669
|
|
|
33,683
|
|
|
15
|
%
|
|||
Total segment revenue
|
3,624,830
|
|
|
3,394,155
|
|
|
230,675
|
|
|
7
|
%
|
|||
Eliminations
|
(26,346
|
)
|
|
(20,768
|
)
|
|
(5,578
|
)
|
|
27
|
%
|
|||
Total revenue
|
$
|
3,598,484
|
|
|
$
|
3,373,387
|
|
|
$
|
225,097
|
|
|
7
|
%
|
•
|
a $13 million increase in Airline Solutions’ SabreSonic revenue for the year ended December 31, 2017 compared to the prior year, driven by passengers boarded growth of 6% on a consistent carrier basis and the cut-over of Alitalia to SabreSonic CSS in the fourth quarter of 2016. Total passengers boarded decreased by 2% to 772 million for the year ended December 31, 2017, driven primarily by the termination of an agreement with Southwest Airlines related to services and processing for their legacy air reservation system in the second quarter of 2017, which was at a lower than average passengers boarded rate;
|
•
|
a $14 million increase in AirVision and AirCentre commercial and operations solutions revenue driven by growth in multiple products across our portfolio; and
|
•
|
a $6 million decrease in discrete professional service fees revenue, as a result of reduced sales compared to the prior year period.
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Travel Network
|
$
|
1,479,221
|
|
|
$
|
1,335,288
|
|
|
$
|
143,933
|
|
|
11
|
%
|
Airline Solutions
|
449,753
|
|
|
439,714
|
|
|
10,039
|
|
|
2
|
%
|
|||
Hospitality Solutions
|
169,877
|
|
|
152,171
|
|
|
17,706
|
|
|
12
|
%
|
|||
Eliminations
|
(26,346
|
)
|
|
(20,371
|
)
|
|
(5,975
|
)
|
|
29
|
%
|
|||
Total segment cost of revenue
|
2,072,505
|
|
|
1,906,802
|
|
|
165,703
|
|
|
9
|
%
|
|||
Corporate
|
56,129
|
|
|
37,783
|
|
|
18,346
|
|
|
49
|
%
|
|||
Depreciation and amortization
|
317,812
|
|
|
287,353
|
|
|
30,459
|
|
|
11
|
%
|
|||
Amortization of upfront incentive consideration
|
67,411
|
|
|
55,724
|
|
|
11,687
|
|
|
21
|
%
|
|||
Total cost of revenue
|
$
|
2,513,857
|
|
|
$
|
2,287,662
|
|
|
$
|
226,195
|
|
|
10
|
%
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Selling, general and administrative
|
$
|
510,075
|
|
|
$
|
626,153
|
|
|
$
|
(116,078
|
)
|
|
(19
|
)%
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Selling, general and administrative
|
$
|
81,112
|
|
|
$
|
—
|
|
|
$
|
81,112
|
|
|
100
|
%
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Other income, net
|
$
|
(36,530
|
)
|
|
$
|
(27,617
|
)
|
|
$
|
(8,913
|
)
|
|
32
|
%
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
Change
|
|||||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Provision for income taxes
|
$
|
128,037
|
|
|
$
|
86,645
|
|
|
$
|
41,392
|
|
|
48
|
%
|
|
As of December 31,
|
||||||
|
2018
|
|
2017
|
||||
Cash and cash equivalents
|
$
|
509,265
|
|
|
$
|
361,381
|
|
Available balance under the Revolver
|
385,335
|
|
|
378,542
|
|
||
Reductions to the Revolver:
|
|
|
|
||||
Revolver outstanding balance
|
—
|
|
|
—
|
|
||
Outstanding letters of credit
|
14,665
|
|
|
21,458
|
|
•
|
payment of
$154 million
in dividends on our common stock;
|
•
|
second annual payment in January 2018 on the TRA liability for
$59 million
, excluding interest;
|
•
|
payment of
$47 million
on our Term Loan A and Term Loan B and
$2 million
in debt issuance and modification costs;
|
•
|
repurchase of
1,075,255
shares of our common stock outstanding totaling
$26 million
; and
|
•
|
receipt of net proceeds totaling
$2 million
from the settlement of employee stock-option awards, including a payment of $10 million in income tax withholdings associated with the settlement of employee restricted-stock awards.
|
•
|
receipt of proceeds totaling $1,898 million (net of $2 million discount) in February 2017 from the 2017 Term Loan B, which were used to pay off approximately $1,753 million of all existing classes of outstanding term loans (other than the 2016 Term Loan A) and $12 million in debt issuance costs. The remaining proceeds were used for purposes of repaying approximately $80 million of Sabre's outstanding mortgage on its corporate headquarters, and for other general corporate purposes;
|
•
|
payments totaling $48 million on the principal outstanding on our term loans;
|
•
|
pursuant to the 2017 Refinancing in August 2017, payment of $7 million in debt modification costs;
|
•
|
first annual payment in January 2017 on the TRA liability for $99 million, excluding interest;
|
•
|
payment of $155 million in dividends on our common stock;
|
•
|
receipt of net proceeds totaling $13 million from the settlement of employee stock-option awards and payment of $11 million in income tax withholdings associated with the settlement of employee restricted-stock awards; and
|
•
|
repurchase of 5,779,769 shares of our common stock outstanding totaling $109 million.
|
•
|
receipt of proceeds totaling $597 million (net of $3 million discount) from the 2016 Term Loan A and used a portion of the proceeds to repay $350 million of outstanding principal on our 2013 Term Loan B and 2013 Incremental Term Loan Facility;
|
•
|
payment of the remaining principal of $165 million on our senior secured notes due 2016, which matured in March 2016, paid down $26 million of the term loan outstanding as part of quarterly principal repayments;
|
•
|
draws on our 2013 Revolver totaling $458 million and payments totaling $458 million resulting in no outstanding balance as of December 31, 2016;
|
•
|
payment of $13 million for capital leases;
|
•
|
payment of $144 million in dividends on our common stock;
|
•
|
receipt of net proceeds of $27 million from the settlement of employee stock-option awards; and
|
•
|
repurchase of 3,980,672 shares of our common stock outstanding totaling $100 million.
|
|
Payments Due by Period
|
||||||||||||||||||||||||||
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
||||||||||||||
Total debt
(1)
|
$
|
229,163
|
|
|
$
|
236,718
|
|
|
$
|
230,587
|
|
|
$
|
532,255
|
|
|
$
|
1,169,748
|
|
|
$
|
1,780,136
|
|
|
$
|
4,178,607
|
|
Operating lease obligations
(2)
|
27,171
|
|
|
18,350
|
|
|
12,438
|
|
|
9,029
|
|
|
6,149
|
|
|
13,429
|
|
|
86,566
|
|
|||||||
IT outsourcing agreement
(3)
|
144,108
|
|
|
136,117
|
|
|
122,365
|
|
|
105,034
|
|
|
105,034
|
|
|
—
|
|
|
612,658
|
|
|||||||
Purchase obligations
(4)
|
273,223
|
|
|
38,689
|
|
|
24,373
|
|
|
16,772
|
|
|
12,009
|
|
|
48,000
|
|
|
413,066
|
|
|||||||
Letters of credit
(5)
|
11,728
|
|
|
1,874
|
|
|
459
|
|
|
605
|
|
|
—
|
|
|
—
|
|
|
14,666
|
|
|||||||
Unrecognized tax benefits
(6)
|
—
|
|
|
4,239
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88,303
|
|
|
92,542
|
|
|||||||
Tax Receivable Agreement
(7)
|
104,724
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
179,565
|
|
|||||||
Total contractual cash obligations
(8)
|
$
|
790,117
|
|
|
$
|
435,987
|
|
|
$
|
390,222
|
|
|
$
|
663,695
|
|
|
$
|
1,292,940
|
|
|
$
|
1,929,868
|
|
|
$
|
5,577,670
|
|
(1)
|
Includes all interest and principal of borrowings under our senior secured credit facilities, senior secured notes due 2023 and capital lease obligations. Under certain circumstances, we are required to pay a percentage of the excess cash flow, if any, generated each year to our lenders which obligation is not reflected in the table above. Interest on the term loan is based on the LIBOR rate plus a base margin and includes the effect of interest rate swaps. For purposes of this table, we have used projected LIBOR rates for all future periods. See Note
8. Debt
, to our consolidated financial statements.
|
(2)
|
We lease approximately 1.5 million square feet of office space in 117 locations in 54 countries. Lease payment escalations are based on fixed annual increases, local consumer price index changes or market rental reviews. We have renewal options of various term lengths in approximately 50 leases. We have no purchase options and no restrictions imposed by our leases concerning dividends or additional debt. See "Note
1. Summary of Business and Significant Accounting Policies
—Adoption of New Accounting Standards," to our consolidated financial statements.
|
(3)
|
Represents minimum amounts due to DXC under the terms of an outsourcing agreement through which DXC manages a significant portion of our information technology systems. Actual payments may vary significantly from the minimum amounts presented.
|
(4)
|
Purchase obligations represent an estimate of all open purchase orders and contractual obligations in the ordinary course of business for which we have not received the goods or services as of
December 31, 2018
. Although open purchase orders are considered enforceable and legally binding, the terms generally allow us the option to cancel, reschedule and adjust our requirements based on our business needs prior to the delivery of goods or performance of services.
|
(5)
|
Our letters of credit consist of stand-by letters of credit, underwritten by a group of lenders, which we primarily issue in the normal course of business. The contractual expiration dates of these letters of credit are shown in the table above. There were no claims made against any stand‑by letters of credit during the years ended
December 31, 2018
,
2017
and
2016
.
|
(6)
|
Unrecognized tax benefits include associated interest and penalties. The timing of related cash payments for substantially all of these liabilities is inherently uncertain because the ultimate amount and timing of such liabilities is affected by factors which are variable and outside our control.
|
(7)
|
We paid
$74 million
, including interest, in January 2019 and expect to pay approximately $30 million in April 2019 under our TRA. See Note
7. Income Taxes
, to our consolidated financial statements and “—Tax Receivable Agreement.” The exact timing of future payments under the TRA is uncertain and dependent on the timing of the realization of taxable income. We expect to pay substantially all of the remaining balance in 2020.
|
(8)
|
Excludes pension obligations, see Note
14. Pension and Other Postretirement Benefit Plans
, to our consolidated financial statements.
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
(1)
|
Subject to a
1%
floor.
|
(2)
|
Subject to a
0%
floor.
|
(3)
|
As of February 22, 2017.
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Consolidated Financial Statements:
|
|
|
|
Financial Statement Schedules:
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Revenue
|
$
|
3,866,956
|
|
|
$
|
3,598,484
|
|
|
$
|
3,373,387
|
|
Cost of revenue
|
2,791,414
|
|
|
2,513,857
|
|
|
2,287,662
|
|
|||
Selling, general and administrative
|
513,526
|
|
|
510,075
|
|
|
626,153
|
|
|||
Impairment and related charges
|
—
|
|
|
81,112
|
|
|
—
|
|
|||
Operating income
|
562,016
|
|
|
493,440
|
|
|
459,572
|
|
|||
Other (expense) income:
|
|
|
|
|
|
||||||
Interest expense, net
|
(157,017
|
)
|
|
(153,925
|
)
|
|
(158,251
|
)
|
|||
Loss on extinguishment of debt
|
(633
|
)
|
|
(1,012
|
)
|
|
(3,683
|
)
|
|||
Joint venture equity income
|
2,556
|
|
|
2,580
|
|
|
2,780
|
|
|||
Other, net
|
(8,509
|
)
|
|
36,530
|
|
|
27,617
|
|
|||
Total other expense, net
|
(163,603
|
)
|
|
(115,827
|
)
|
|
(131,537
|
)
|
|||
Income from continuing operations before income taxes
|
398,413
|
|
|
377,613
|
|
|
328,035
|
|
|||
Provision for income taxes
|
57,492
|
|
|
128,037
|
|
|
86,645
|
|
|||
Income from continuing operations
|
340,921
|
|
|
249,576
|
|
|
241,390
|
|
|||
Income (loss) from discontinued operations, net of tax
|
1,739
|
|
|
(1,932
|
)
|
|
5,549
|
|
|||
Net income
|
342,660
|
|
|
247,644
|
|
|
246,939
|
|
|||
Net income attributable to noncontrolling interests
|
5,129
|
|
|
5,113
|
|
|
4,377
|
|
|||
Net income attributable to common stockholders
|
$
|
337,531
|
|
|
$
|
242,531
|
|
|
$
|
242,562
|
|
|
|
|
|
|
|
||||||
Basic net income per share attributable to common stockholders:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
1.22
|
|
|
$
|
0.88
|
|
|
$
|
0.85
|
|
Income (loss) from discontinued operations
|
0.01
|
|
|
(0.01
|
)
|
|
0.02
|
|
|||
Net income per common share
|
$
|
1.23
|
|
|
$
|
0.87
|
|
|
$
|
0.87
|
|
Diluted net income per share attributable to common stockholders:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
1.21
|
|
|
$
|
0.88
|
|
|
$
|
0.84
|
|
Income (loss) from discontinued operations
|
0.01
|
|
|
(0.01
|
)
|
|
0.02
|
|
|||
Net income per common share
|
$
|
1.22
|
|
|
$
|
0.87
|
|
|
$
|
0.86
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
275,235
|
|
|
276,893
|
|
|
277,546
|
|
|||
Diluted
|
277,518
|
|
|
278,320
|
|
|
282,752
|
|
|||
|
|
|
|
|
|
||||||
Dividend per common share
|
$
|
0.56
|
|
|
$
|
0.56
|
|
|
$
|
0.52
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
342,660
|
|
|
$
|
247,644
|
|
|
$
|
246,939
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments (“CTA”):
|
|
|
|
|
|
||||||
Foreign CTA gains (losses), net of tax
|
(3,651
|
)
|
|
13,136
|
|
|
(1,265
|
)
|
|||
Reclassification adjustment for realized losses on foreign CTA, net of tax
|
—
|
|
|
—
|
|
|
(198
|
)
|
|||
Net change in foreign CTA gains (losses), net of tax
|
(3,651
|
)
|
|
13,136
|
|
|
(1,463
|
)
|
|||
Retirement-related benefit plans:
|
|
|
|
|
|
||||||
Net actuarial loss, net of taxes of $6,223, $386 and $9,701
|
(19,143
|
)
|
|
(852
|
)
|
|
(17,223
|
)
|
|||
Amortization of prior service credits, net of taxes of $321, $517 and $518
|
(1,112
|
)
|
|
(915
|
)
|
|
(914
|
)
|
|||
Amortization of actuarial losses, net of taxes of $(1,624), $(2,336) and $(2,123)
|
5,739
|
|
|
4,181
|
|
|
3,748
|
|
|||
Net change in retirement-related benefit plans, net of tax
|
(14,516
|
)
|
|
2,414
|
|
|
(14,389
|
)
|
|||
Derivatives and available-for-sale securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses), net of taxes of $1,474, $(5,989) and $2,214
|
(6,842
|
)
|
|
16,068
|
|
|
4,307
|
|
|||
Reclassification adjustment for realized gains (losses), net of taxes of $(1,248), $(1,005) and $1,170
|
3,677
|
|
|
2,082
|
|
|
(13,422
|
)
|
|||
Net change in derivatives and available for sale securities, net of tax
|
(3,165
|
)
|
|
18,150
|
|
|
(9,115
|
)
|
|||
Share of other comprehensive income (loss) of joint venture
|
(635
|
)
|
|
615
|
|
|
(697
|
)
|
|||
Other comprehensive income (loss)
|
(21,967
|
)
|
|
34,315
|
|
|
(25,664
|
)
|
|||
Comprehensive income
|
320,693
|
|
|
281,959
|
|
|
221,275
|
|
|||
Less: Comprehensive income attributable to noncontrolling interests
|
(5,129
|
)
|
|
(5,113
|
)
|
|
(4,377
|
)
|
|||
Comprehensive income attributable to Sabre Corporation
|
$
|
315,564
|
|
|
$
|
276,846
|
|
|
$
|
216,898
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
509,265
|
|
|
$
|
361,381
|
|
Accounts receivable, net
|
508,122
|
|
|
490,558
|
|
||
Prepaid expenses and other current assets
|
170,243
|
|
|
108,753
|
|
||
Total current assets
|
1,187,630
|
|
|
960,692
|
|
||
Property and equipment, net
|
790,372
|
|
|
799,194
|
|
||
Investments in joint ventures
|
27,769
|
|
|
27,527
|
|
||
Goodwill
|
2,552,369
|
|
|
2,554,987
|
|
||
Acquired customer relationships, net
|
323,731
|
|
|
351,034
|
|
||
Other intangible assets, net
|
289,517
|
|
|
332,171
|
|
||
Deferred income taxes
|
24,322
|
|
|
31,817
|
|
||
Other assets, net
|
610,671
|
|
|
591,942
|
|
||
Total assets
|
$
|
5,806,381
|
|
|
$
|
5,649,364
|
|
|
|
|
|
||||
Liabilities and stockholders’ equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable
|
$
|
165,227
|
|
|
$
|
162,755
|
|
Accrued compensation and related benefits
|
112,866
|
|
|
112,343
|
|
||
Accrued subscriber incentives
|
301,530
|
|
|
271,200
|
|
||
Deferred revenues
|
80,902
|
|
|
110,532
|
|
||
Other accrued liabilities
|
185,178
|
|
|
198,353
|
|
||
Current portion of debt
|
68,435
|
|
|
57,138
|
|
||
Tax Receivable Agreement
|
104,257
|
|
|
59,826
|
|
||
Total current liabilities
|
1,018,395
|
|
|
972,147
|
|
||
Deferred income taxes
|
135,753
|
|
|
99,801
|
|
||
Other noncurrent liabilities
|
340,495
|
|
|
480,185
|
|
||
Long-term debt
|
3,337,467
|
|
|
3,398,731
|
|
||
Commitments and contingencies (Note 15)
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
||||
Common stock: $0.01 par value; 450,000 authorized shares; 291,664 and 289,138 shares issued, 275,352 and 274,342 shares outstanding at December 31, 2018 and 2017, respectively
|
2,917
|
|
|
2,891
|
|
||
Additional paid-in capital
|
2,243,419
|
|
|
2,174,187
|
|
||
Treasury stock, at cost, 16,312 and 14,796 shares at December 31, 2018 and 2017, respectively
|
(377,980
|
)
|
|
(341,846
|
)
|
||
Retained deficit
|
(768,566
|
)
|
|
(1,053,446
|
)
|
||
Accumulated other comprehensive loss
|
(132,724
|
)
|
|
(88,484
|
)
|
||
Noncontrolling interest
|
7,205
|
|
|
5,198
|
|
||
Total stockholders’ equity
|
974,271
|
|
|
698,500
|
|
||
Total liabilities and stockholders’ equity
|
$
|
5,806,381
|
|
|
$
|
5,649,364
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
342,660
|
|
|
$
|
247,644
|
|
|
$
|
246,939
|
|
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
413,344
|
|
|
400,871
|
|
|
413,986
|
|
|||
Amortization of upfront incentive consideration
|
77,622
|
|
|
67,411
|
|
|
55,724
|
|
|||
Stock-based compensation expense
|
57,263
|
|
|
44,689
|
|
|
48,524
|
|
|||
Deferred income taxes
|
43,099
|
|
|
48,760
|
|
|
48,454
|
|
|||
Allowance for doubtful accounts
|
7,749
|
|
|
9,459
|
|
|
10,567
|
|
|||
Tax Receivable Agreement
|
4,852
|
|
|
(59,603
|
)
|
|
—
|
|
|||
Amortization of debt issuance costs
|
3,981
|
|
|
5,923
|
|
|
9,611
|
|
|||
Joint venture equity income
|
(2,556
|
)
|
|
(2,580
|
)
|
|
(2,780
|
)
|
|||
(Income) loss from discontinued operations
|
(1,739
|
)
|
|
1,932
|
|
|
(5,549
|
)
|
|||
Debt modification costs
|
1,558
|
|
|
14,758
|
|
|
—
|
|
|||
Dividends received from joint venture investments
|
1,411
|
|
|
1,088
|
|
|
640
|
|
|||
Loss on extinguishment of debt
|
633
|
|
|
1,012
|
|
|
3,683
|
|
|||
Impairment and related charges
|
—
|
|
|
81,112
|
|
|
—
|
|
|||
Litigation-related credits
|
—
|
|
|
—
|
|
|
(25,527
|
)
|
|||
Other
|
(2,349
|
)
|
|
13,284
|
|
|
(5,426
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts and other receivables
|
(45,586
|
)
|
|
(108,596
|
)
|
|
(12,949
|
)
|
|||
Prepaid expenses and other current assets
|
14,362
|
|
|
109
|
|
|
(11,809
|
)
|
|||
Capitalized implementation costs
|
(39,168
|
)
|
|
(60,766
|
)
|
|
(83,405
|
)
|
|||
Upfront incentive consideration
|
(88,735
|
)
|
|
(94,296
|
)
|
|
(70,702
|
)
|
|||
Other assets
|
(29,607
|
)
|
|
(21,111
|
)
|
|
(2,799
|
)
|
|||
Accounts payable and other accrued liabilities
|
(27,080
|
)
|
|
67,034
|
|
|
56,787
|
|
|||
Accrued compensation and related benefits
|
(15,044
|
)
|
|
6,038
|
|
|
2,768
|
|
|||
Deferred revenue including upfront solution fees
|
8,127
|
|
|
13,861
|
|
|
22,663
|
|
|||
Cash provided by operating activities
|
724,797
|
|
|
678,033
|
|
|
699,400
|
|
|||
Investing Activities
|
|
|
|
|
|
||||||
Additions to property and equipment
|
(283,940
|
)
|
|
(316,436
|
)
|
|
(327,647
|
)
|
|||
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(164,120
|
)
|
|||
Proceeds from sale of marketable securities
|
—
|
|
|
—
|
|
|
45,959
|
|
|||
Other investing activities
|
8,681
|
|
|
(1,089
|
)
|
|
—
|
|
|||
Cash used in investing activities
|
(275,259
|
)
|
|
(317,525
|
)
|
|
(445,808
|
)
|
|||
Financing Activities
|
|
|
|
|
|
||||||
Cash dividends paid to common stockholders
|
(154,080
|
)
|
|
(154,861
|
)
|
|
(144,355
|
)
|
|||
Repurchase of common stock
|
(26,281
|
)
|
|
(109,100
|
)
|
|
(100,000
|
)
|
|||
Payments on Tax Receivable Agreement
|
(58,908
|
)
|
|
(99,241
|
)
|
|
—
|
|
|||
Payments on borrowings from lenders
|
(47,310
|
)
|
|
(1,880,506
|
)
|
|
(999,868
|
)
|
|||
Debt issuance and modification costs
|
(1,567
|
)
|
|
(19,052
|
)
|
|
(11,377
|
)
|
|||
Net receipts on the settlement of equity-based awards
|
2,040
|
|
|
12,647
|
|
|
27,344
|
|
|||
Proceeds of borrowings from lenders
|
—
|
|
|
1,897,625
|
|
|
1,055,000
|
|
|||
Other financing activities
|
(20,400
|
)
|
|
(4,292
|
)
|
|
(16,769
|
)
|
|||
Cash used in financing activities
|
(306,506
|
)
|
|
(356,780
|
)
|
|
(190,025
|
)
|
|||
Cash Flows from Discontinued Operations
|
|
|
|
|
|
||||||
Cash provided by (used in) operating activities
|
(1,895
|
)
|
|
(4,848
|
)
|
|
(19,478
|
)
|
|||
Cash provided by (used in) discontinued operations
|
(1,895
|
)
|
|
(4,848
|
)
|
|
(19,478
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
6,747
|
|
|
(1,613
|
)
|
|
(1,107
|
)
|
|||
Increase (decrease) in cash and cash equivalents
|
147,884
|
|
|
(2,733
|
)
|
|
42,982
|
|
|||
Cash and cash equivalents at beginning of period
|
361,381
|
|
|
364,114
|
|
|
321,132
|
|
|||
Cash and cash equivalents at end of period
|
$
|
509,265
|
|
|
$
|
361,381
|
|
|
$
|
364,114
|
|
Cash payments for income taxes
|
$
|
57,629
|
|
|
$
|
40,211
|
|
|
$
|
39,032
|
|
Cash payments for interest
|
$
|
156,041
|
|
|
$
|
149,572
|
|
|
$
|
151,495
|
|
Capitalized interest
|
$
|
8,823
|
|
|
$
|
11,142
|
|
|
$
|
13,887
|
|
|
|
Stockholders’ Equity (Deficit)
|
||||||||||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid in
Capital
|
|
Treasury Stock
|
|
Retained
Earnings
(Deficit)
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Noncontrolling
Interest
|
|
Total
Stockholders'
Equity
|
||||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2015
|
|
279,082,473
|
|
|
$
|
2,790
|
|
|
$
|
2,016,325
|
|
|
4,126,643
|
|
|
$
|
(110,548
|
)
|
|
$
|
(1,328,730
|
)
|
|
$
|
(97,135
|
)
|
|
$
|
1,438
|
|
|
$
|
484,140
|
|
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
242,562
|
|
|
(25,664
|
)
|
|
4,377
|
|
|
221,275
|
|
|||||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(144,307
|
)
|
|
—
|
|
|
—
|
|
|
(144,307
|
)
|
|||||||
Repurchase of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,980,672
|
|
|
(100,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(100,000
|
)
|
|||||||
Settlement of stock-based awards
|
|
6,378,652
|
|
|
64
|
|
|
38,602
|
|
|
404,008
|
|
|
(11,198
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,468
|
|
|||||||
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
48,524
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48,524
|
|
|||||||
Dividends paid to non-controlling interest on subsidiary common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,236
|
)
|
|
(3,236
|
)
|
|||||||
Adoption of New Accounting Standard
|
|
—
|
|
|
—
|
|
|
2,392
|
|
|
—
|
|
|
—
|
|
|
89,359
|
|
|
—
|
|
|
—
|
|
|
91,751
|
|
|||||||
Balance at December 31, 2016
|
|
285,461,125
|
|
|
2,854
|
|
|
2,105,843
|
|
|
8,511,323
|
|
|
(221,746
|
)
|
|
(1,141,116
|
)
|
|
(122,799
|
)
|
|
2,579
|
|
|
625,615
|
|
|||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
242,531
|
|
|
34,315
|
|
|
5,113
|
|
|
281,959
|
|
|||||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154,861
|
)
|
|
—
|
|
|
—
|
|
|
(154,861
|
)
|
|||||||
Repurchase of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,779,769
|
|
|
(109,100
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(109,100
|
)
|
|||||||
Settlement of stock-based awards
|
|
3,676,776
|
|
|
37
|
|
|
23,655
|
|
|
504,634
|
|
|
(11,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,692
|
|
|||||||
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
44,689
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,689
|
|
|||||||
Dividends paid to non-controlling interest on subsidiary common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,494
|
)
|
|
(2,494
|
)
|
|||||||
Balance at December 31, 2017
|
|
289,137,901
|
|
|
2,891
|
|
|
2,174,187
|
|
|
14,795,726
|
|
|
(341,846
|
)
|
|
(1,053,446
|
)
|
|
(88,484
|
)
|
|
5,198
|
|
|
698,500
|
|
|||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
337,531
|
|
|
(44,240
|
)
|
|
5,129
|
|
|
298,420
|
|
|||||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154,080
|
)
|
|
—
|
|
|
—
|
|
|
(154,080
|
)
|
|||||||
Repurchase of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,075,255
|
|
|
(26,281
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26,281
|
)
|
|||||||
Settlement of stock-based awards
|
|
2,526,053
|
|
|
26
|
|
|
11,969
|
|
|
440,557
|
|
|
(9,853
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,142
|
|
|||||||
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
57,263
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,263
|
|
|||||||
Adoption of New Accounting Standards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101,429
|
|
|
—
|
|
|
—
|
|
|
101,429
|
|
|||||||
Dividends paid to non-controlling interest on subsidiary common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,122
|
)
|
|
(3,122
|
)
|
|||||||
Balance at December 31, 2018
|
|
291,663,954
|
|
|
$
|
2,917
|
|
|
$
|
2,243,419
|
|
|
16,311,538
|
|
|
$
|
(377,980
|
)
|
|
$
|
(768,566
|
)
|
|
$
|
(132,724
|
)
|
|
$
|
7,205
|
|
|
$
|
974,271
|
|
Buildings
|
Lesser of lease term or 35 years
|
Leasehold improvements
|
Lesser of lease term or useful life
|
Furniture and fixtures
|
5 to 15 years
|
Equipment, general office and computer
|
3 to 5 years
|
Software developed for internal use
|
3 to 5 years
|
–
|
Under ASC 605, we recognized revenue related to license fee and maintenance agreements ratably over the life of the contract. Under ASC 606, revenue for license fees is recognized upon delivery of the license and ongoing maintenance services are to be recognized ratably over the life of the contract. For existing open agreements, this change resulted in a beginning balance sheet adjustment and reduced revenue in subsequent years from these agreements.
|
–
|
Allocation of contract revenues among various products and solutions, and the timing of the recognition of those revenues, are impacted by agreements with tiered pricing or variable rate structures that do not correspond with the goods or services delivered to the customer. For existing open agreements, this change resulted in a beginning balance sheet adjustment and reduced revenue in subsequent years from these agreements.
|
|
Year Ended December 31, 2018
|
||||||||
|
As reported
ASC 606
|
Adjustments
|
As adjusted
ASC 605
|
||||||
Revenue
|
$
|
3,866,956
|
|
$
|
22,637
|
|
$
|
3,889,593
|
|
Cost of revenue
|
2,791,414
|
|
6,728
|
|
2,798,142
|
|
|||
Selling, general and administrative
|
513,526
|
|
(222
|
)
|
513,304
|
|
|||
Operating income
|
562,016
|
|
16,131
|
|
578,147
|
|
|||
Income from continuing operations before income taxes
|
398,413
|
|
16,131
|
|
414,544
|
|
|||
Provision for income taxes
|
57,492
|
|
3,524
|
|
61,016
|
|
|||
Income from continuing operations
|
340,921
|
|
12,607
|
|
353,528
|
|
|||
Net income
|
342,660
|
|
12,607
|
|
355,267
|
|
|||
Net income attributable to common stockholders
|
337,531
|
|
12,607
|
|
350,138
|
|
|
December 31, 2018
|
||||||||
|
As reported
ASC 606
|
Adjustments
|
As adjusted
ASC 605
|
||||||
Accounts receivable, net
|
$
|
508,122
|
|
$
|
(31,141
|
)
|
$
|
476,981
|
|
Prepaid expenses and other current assets
|
170,243
|
|
(22,379
|
)
|
147,864
|
|
|||
Total current assets
|
1,187,630
|
|
(53,520
|
)
|
1,134,110
|
|
|||
Other assets, net
|
610,671
|
|
5,478
|
|
616,149
|
|
|||
Total assets
|
5,806,381
|
|
(48,042
|
)
|
5,758,339
|
|
|||
Accrued subscriber incentives
|
301,530
|
|
4,130
|
|
305,660
|
|
|||
Deferred revenues
|
80,902
|
|
53,752
|
|
134,654
|
|
|||
Other accrued liabilities
|
185,178
|
|
(20,057
|
)
|
165,121
|
|
|||
Total current liabilities
|
1,018,395
|
|
37,825
|
|
1,056,220
|
|
|||
Deferred income taxes
|
135,753
|
|
(19,575
|
)
|
116,178
|
|
|||
Other noncurrent liabilities
|
340,495
|
|
(254
|
)
|
340,241
|
|
|||
Retained deficit
|
(768,566
|
)
|
(66,038
|
)
|
(834,604
|
)
|
|||
Total stockholders' equity
|
974,271
|
|
(66,038
|
)
|
908,233
|
|
|||
Total liabilities and stockholders' equity
|
5,806,381
|
|
(48,042
|
)
|
5,758,339
|
|
Contract assets as of January 1, 2018
|
$
|
75,624
|
|
Additions
|
41,704
|
|
|
Deductions
|
(38,029
|
)
|
|
Other
|
(31
|
)
|
|
Contract assets as of December 31, 2018
|
$
|
79,268
|
|
|
Year Ended December 31, 2018
|
||
Air
|
$
|
2,284,419
|
|
Lodging, Ground and Sea
|
350,152
|
|
|
Other
|
171,623
|
|
|
Total Travel Network
|
2,806,194
|
|
|
SabreSonic Passenger Reservation System
|
501,085
|
|
|
Commercial and Operations Solutions
(1)
|
312,751
|
|
|
Other
|
8,911
|
|
|
Total Airline Solutions
|
822,747
|
|
|
SynXis Software and Services
|
240,583
|
|
|
Other
|
32,496
|
|
|
Total Hospitality Solutions
|
273,079
|
|
|
Eliminations
|
(35,064
|
)
|
|
Total Sabre Revenue
|
$
|
3,866,956
|
|
|
|
|
December 31, 2018
|
||
Contract acquisition costs:
|
|
||
Beginning balance (1/1/2018)
|
$
|
19,353
|
|
Additions
|
7,924
|
|
|
Amortization
|
(6,404
|
)
|
|
Other
|
425
|
|
|
Ending balance
|
$
|
21,298
|
|
|
|
||
Capitalized implementation costs:
|
|
||
Beginning balance (1/1/2018)
|
$
|
194,501
|
|
Additions
|
39,168
|
|
|
Amortization
|
(37,904
|
)
|
|
Impairment
|
(4,013
|
)
|
|
Other
|
(2,304
|
)
|
|
Ending balance
|
$
|
189,448
|
|
•
|
When we have a right to receive consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, we recognize revenue in the amount to which we have a right to invoice.
|
•
|
We apply the allocation objective expedient where applicable, which precludes the requirement to allocate revenue across multiple performance obligations based on total transaction price.
|
•
|
We do not evaluate a contract for a significant financing component if payment is expected within one year or less from the transfer of the promised items to the customer.
|
•
|
We generally expense sales commissions when incurred when the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. We also used the practical expedient to calculate contract acquisition costs based on a portfolio of contracts with similar characteristics instead of a contract by contract analysis.
|
•
|
For contract modifications, we reflected the aggregate effect of all modifications that occurred prior to the adoption date when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to satisfied and unsatisfied performance obligations for the modified contract at transition.
|
Cash and cash equivalents
|
$
|
4,209
|
|
Accounts receivable
|
10,564
|
|
|
Other current assets
|
917
|
|
|
Goodwill
|
98,930
|
|
|
Intangible assets:
|
|
||
Customer relationships
|
52,292
|
|
|
Purchased technology
|
23,362
|
|
|
Trademarks and brand names
|
2,183
|
|
|
Property and equipment, net
|
1,556
|
|
|
Current liabilities
|
(11,091
|
)
|
|
Deferred income taxes
|
(22,548
|
)
|
|
Total acquisition price
|
$
|
160,374
|
|
|
Travel Network
|
|
Airline Solutions
|
|
Hospitality
Solutions
|
|
Total
Goodwill
|
||||||||
Balance as of December 31, 2016
|
$
|
2,104,542
|
|
|
$
|
290,003
|
|
|
$
|
153,902
|
|
|
$
|
2,548,447
|
|
Acquired
|
439
|
|
|
—
|
|
|
—
|
|
|
439
|
|
||||
Adjustments
(1)
|
(159
|
)
|
|
982
|
|
|
5,278
|
|
|
6,101
|
|
||||
Balance as of December 31, 2017
|
2,104,822
|
|
|
290,985
|
|
|
159,180
|
|
|
2,554,987
|
|
||||
Acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Adjustments
(1)
|
(33
|
)
|
|
378
|
|
|
(2,963
|
)
|
|
(2,618
|
)
|
||||
Balance as of December 31, 2018
|
$
|
2,104,789
|
|
|
$
|
291,363
|
|
|
$
|
156,217
|
|
|
$
|
2,552,369
|
|
(1)
|
Includes net foreign currency effects during the year.
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
||||||||||||
Acquired customer relationships
|
$
|
1,033,555
|
|
|
$
|
(709,824
|
)
|
|
$
|
323,731
|
|
|
$
|
1,038,106
|
|
|
$
|
(687,072
|
)
|
|
$
|
351,034
|
|
Trademarks and brand names
|
332,239
|
|
|
(137,009
|
)
|
|
195,230
|
|
|
332,238
|
|
|
(126,312
|
)
|
|
205,926
|
|
||||||
Reacquired rights
|
113,500
|
|
|
(56,910
|
)
|
|
56,590
|
|
|
113,500
|
|
|
(40,695
|
)
|
|
72,805
|
|
||||||
Purchased technology
|
426,488
|
|
|
(400,750
|
)
|
|
25,738
|
|
|
427,823
|
|
|
(390,139
|
)
|
|
37,684
|
|
||||||
Acquired contracts, supplier and distributor agreements
|
37,600
|
|
|
(25,867
|
)
|
|
11,733
|
|
|
37,600
|
|
|
(22,410
|
)
|
|
15,190
|
|
||||||
Non-compete agreements
|
14,686
|
|
|
(14,460
|
)
|
|
226
|
|
|
15,025
|
|
|
(14,459
|
)
|
|
566
|
|
||||||
Total intangible assets
|
$
|
1,958,068
|
|
|
$
|
(1,344,820
|
)
|
|
$
|
613,248
|
|
|
$
|
1,964,292
|
|
|
$
|
(1,281,087
|
)
|
|
$
|
683,205
|
|
2019
|
$
|
63,866
|
|
2020
|
62,256
|
|
|
2021
|
60,725
|
|
|
2022
|
47,144
|
|
|
2023
|
33,438
|
|
|
2024 and thereafter
|
345,819
|
|
|
Total
|
$
|
613,248
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Prepaid Expenses
|
$
|
80,049
|
|
|
$
|
69,650
|
|
Value added tax receivable, net
|
57,486
|
|
|
35,556
|
|
||
Other
|
32,708
|
|
|
3,547
|
|
||
Prepaid expenses and other current assets
|
$
|
170,243
|
|
|
$
|
108,753
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Buildings and leasehold improvements
|
$
|
156,357
|
|
|
$
|
151,843
|
|
Furniture, fixtures and equipment
|
38,049
|
|
|
38,155
|
|
||
Computer equipment
|
349,454
|
|
|
323,818
|
|
||
Software developed for internal use
|
1,771,306
|
|
|
1,521,901
|
|
||
Property and equipment
|
2,315,166
|
|
|
2,035,717
|
|
||
Accumulated depreciation and amortization
|
(1,524,794
|
)
|
|
(1,236,523
|
)
|
||
Property and equipment, net
|
$
|
790,372
|
|
|
$
|
799,194
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Capitalized implementation costs, net
|
$
|
189,447
|
|
|
$
|
208,415
|
|
Deferred upfront incentive consideration
|
162,893
|
|
|
151,693
|
|
||
Long-term contract assets
(1)
|
60,075
|
|
|
92,373
|
|
||
Long-term trade unbilled receivables
(1)
|
50,467
|
|
|
—
|
|
||
Other
|
147,789
|
|
|
139,461
|
|
||
Other assets, net
|
$
|
610,671
|
|
|
$
|
591,942
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
Pension and other postretirement benefits
|
$
|
118,919
|
|
|
$
|
115,114
|
|
Deferred revenue
|
75,685
|
|
|
99,044
|
|
||
Tax receivable agreement
|
72,939
|
|
|
170,067
|
|
||
Other
|
72,952
|
|
|
95,960
|
|
||
Other noncurrent liabilities
|
$
|
340,495
|
|
|
$
|
480,185
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Defined benefit pension and other postretirement benefit plans
|
$
|
(139,430
|
)
|
|
$
|
(102,623
|
)
|
Unrealized foreign currency translation gain
|
7,201
|
|
|
11,488
|
|
||
Unrealized (loss) gain on foreign currency forward contracts, interest rate swaps and available-for-sale securities
|
(495
|
)
|
|
2,651
|
|
||
Total accumulated other comprehensive loss, net of tax
|
$
|
(132,724
|
)
|
|
$
|
(88,484
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Components of pre-tax income:
|
|
|
|
|
|
|
|
|
|||
Domestic
|
$
|
190,291
|
|
|
$
|
199,685
|
|
|
$
|
206,182
|
|
Foreign
|
208,122
|
|
|
177,928
|
|
|
121,853
|
|
|||
|
$
|
398,413
|
|
|
$
|
377,613
|
|
|
$
|
328,035
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Current portion:
|
|
|
|
|
|
|
|
|
|||
Federal
|
$
|
(49,518
|
)
|
|
$
|
50,829
|
|
|
$
|
8,357
|
|
State and Local
|
4,168
|
|
|
2,388
|
|
|
1,346
|
|
|||
Non U.S.
|
59,743
|
|
|
26,060
|
|
|
28,488
|
|
|||
Total current
|
14,393
|
|
|
79,277
|
|
|
38,191
|
|
|||
Deferred portion:
|
|
|
|
|
|
|
|
|
|||
Federal
|
55,502
|
|
|
47,372
|
|
|
60,372
|
|
|||
State and Local
|
(4,812
|
)
|
|
(6,178
|
)
|
|
(4,352
|
)
|
|||
Non U.S.
|
(7,591
|
)
|
|
7,566
|
|
|
(7,566
|
)
|
|||
Total deferred
|
43,099
|
|
|
48,760
|
|
|
48,454
|
|
|||
Total provision for income taxes
|
$
|
57,492
|
|
|
$
|
128,037
|
|
|
$
|
86,645
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Income tax provision at statutory federal income tax rate
|
$
|
83,667
|
|
|
$
|
132,165
|
|
|
$
|
114,812
|
|
State income taxes, net of federal benefit
|
(42
|
)
|
|
(1,727
|
)
|
|
(1,964
|
)
|
|||
Impact of non U.S. taxing jurisdictions, net
|
5,591
|
|
|
(13,492
|
)
|
|
11,482
|
|
|||
Impact of U.S. TCJA
(1)
|
(26,730
|
)
|
|
46,563
|
|
|
—
|
|
|||
Employee stock based compensation
|
2,260
|
|
|
(4,977
|
)
|
|
(34,789
|
)
|
|||
Research tax credit
|
(9,818
|
)
|
|
(8,777
|
)
|
|
(9,817
|
)
|
|||
Tax receivable agreement (TRA)
(2)
|
1,019
|
|
|
(20,861
|
)
|
|
—
|
|
|||
Valuation allowance
|
—
|
|
|
—
|
|
|
8
|
|
|||
Other, net
|
1,545
|
|
|
(857
|
)
|
|
6,913
|
|
|||
Total provision for income taxes
|
$
|
57,492
|
|
|
$
|
128,037
|
|
|
$
|
86,645
|
|
(1)
|
In 2018, amount includes SAB 118 adjustments for deferred taxes and foreign tax effects. In 2017, amount includes
$48 million
of transition tax expense, and the remainder is the net benefit on cumulative deferred taxes.
|
(2)
|
Amount includes adjustments to the TRA, which are not taxable.
|
|
As of December 31,
|
||||||
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
|
|
||
Accrued expenses
|
$
|
8,638
|
|
|
$
|
13,716
|
|
Employee benefits other than pension
|
34,147
|
|
|
22,829
|
|
||
Deferred revenue
|
22,351
|
|
|
51,151
|
|
||
Pension obligations
|
26,821
|
|
|
24,989
|
|
||
Tax loss carryforwards
|
70,340
|
|
|
156,327
|
|
||
Non-U.S. operations
|
—
|
|
|
14,565
|
|
||
Incentive consideration
|
9,456
|
|
|
5,381
|
|
||
Tax credit carryforwards
|
31,467
|
|
|
58,848
|
|
||
Suspended loss
|
14,474
|
|
|
14,478
|
|
||
Other
|
8,008
|
|
|
243
|
|
||
Total deferred tax assets
|
225,702
|
|
|
362,527
|
|
||
Deferred tax liabilities:
|
|
|
|
|
|
||
Depreciation and amortization
|
(13,298
|
)
|
|
(21,317
|
)
|
||
Software developed for internal use
|
(103,631
|
)
|
|
(180,108
|
)
|
||
Intangible assets
|
(122,921
|
)
|
|
(134,484
|
)
|
||
Unrealized gains and losses
|
(21,840
|
)
|
|
(29,669
|
)
|
||
Non U.S. operations
|
(9,355
|
)
|
|
—
|
|
||
Investment in partnership
|
(6,794
|
)
|
|
(5,932
|
)
|
||
Total deferred tax liabilities
|
(277,839
|
)
|
|
(371,510
|
)
|
||
Valuation allowance
|
(59,294
|
)
|
|
(59,001
|
)
|
||
Net deferred tax (liability)
|
$
|
(111,431
|
)
|
|
$
|
(67,984
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Balance at beginning of year
|
$
|
74,388
|
|
|
$
|
49,331
|
|
|
$
|
68,746
|
|
Additions for tax positions taken in the current year
|
4,450
|
|
|
5,279
|
|
|
538
|
|
|||
Additions for tax positions of prior years
|
1,649
|
|
|
21,669
|
|
|
2,096
|
|
|||
Additions for tax positions from acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reductions for tax positions of prior years
|
(5,831
|
)
|
|
—
|
|
|
(17,706
|
)
|
|||
Reductions for tax positions of expired statute of limitations
|
(3,143
|
)
|
|
(1,891
|
)
|
|
(3,743
|
)
|
|||
Settlements
|
(2,149
|
)
|
|
—
|
|
|
(600
|
)
|
|||
Balance at end of year
|
$
|
69,364
|
|
|
$
|
74,388
|
|
|
$
|
49,331
|
|
|
|
|
|
|
December 31,
|
||||||
|
Rate
|
|
Maturity
|
|
2018
|
|
2017
|
||||
Senior secured credit facilities:
|
|
|
|
|
|
|
|
||||
Term Loan A
|
L + 2.00%
|
|
July 2022
|
|
$
|
527,250
|
|
|
$
|
555,750
|
|
Term Loan B
(1)
|
L + 2.00%
|
|
February 2024
|
|
1,862,237
|
|
|
1,881,048
|
|
||
Revolver, $400 million
|
L + 2.00%
|
|
July 2022
|
|
—
|
|
|
—
|
|
||
5.375% senior secured notes due 2023
|
5.375%
|
|
April 2023
|
|
530,000
|
|
|
530,000
|
|
||
5.25% senior secured notes due 2023
|
5.25%
|
|
November 2023
|
|
500,000
|
|
|
500,000
|
|
||
Capital lease obligations
|
|
|
|
|
12,368
|
|
|
21,235
|
|
||
Face value of total debt outstanding
|
|
|
|
|
3,431,855
|
|
|
3,488,033
|
|
||
Less current portion of debt outstanding
|
|
|
|
|
(68,435
|
)
|
|
(57,138
|
)
|
||
Face value of long-term debt outstanding
|
|
|
|
|
$
|
3,363,420
|
|
|
$
|
3,430,895
|
|
(1)
|
Pursuant to the March 2, 2018 refinancing, the interest rate on Term Loan B was reduced from L+
2.25%
to L+
2.00%
.
|
|
Eurocurrency borrowings
|
|
Base rate borrowings
|
|
Applicable Margin
(1)(2)
|
|
Applicable Margin
|
Term Loan A
|
2.00%
|
|
1.00%
|
Term Loan B
|
2.00%
|
|
1.00%
|
Revolver, $400 million
|
2.00%
|
|
1.00%
|
(1)
|
Applicable margins do not reflect potential step ups and downs of Term Loan A and Revolver,
$400 million
, which are determined by the Senior Secured Leverage Ratio. See below for additional information.
|
(2)
|
Term Loan A, Term Loan B, and Revolver,
$400 million
, are subject to a
0%
floor.
|
|
Year Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Including the impact of interest rate swaps
|
4.57
|
%
|
|
4.35
|
%
|
|
4.72
|
%
|
Excluding the impact of interest rate swaps
|
4.36
|
%
|
|
4.03
|
%
|
|
4.55
|
%
|
|
Amount
|
||
Years Ending December 31,
|
|
|
|
2019
|
$
|
68,435
|
|
2020
|
81,304
|
|
|
2021
|
75,810
|
|
|
2022
|
389,310
|
|
|
2023
|
1,048,810
|
|
|
Thereafter
|
1,768,186
|
|
|
Total
|
$
|
3,431,855
|
|
(1)
|
Subject to a
1%
floor.
|
(2)
|
Subject to a
0%
floor.
|
(3)
|
As of February 22, 2017.
|
|
|
Derivative Assets (Liabilities)
|
||||||||
|
|
|
|
Fair Value as of December 31,
|
||||||
Derivatives Designated as Hedging Instruments
|
|
Consolidated Balance Sheet Location
|
|
2018
|
|
2017
|
||||
Foreign exchange contracts
|
|
Prepaid expenses and other current assets
|
|
—
|
|
|
$
|
6,213
|
|
|
Foreign exchange contracts
|
|
Other accrued liabilities
|
|
(4,285
|
)
|
|
—
|
|
||
Interest rate swaps
|
|
Prepaid expenses and other current assets
|
|
3,674
|
|
|
856
|
|
||
Interest rate swaps
|
|
Other assets, net
|
|
295
|
|
|
3,093
|
|
||
Total
|
|
|
|
$
|
(316
|
)
|
|
$
|
10,162
|
|
|
|
Derivative Assets (Liabilities)
|
||||||||
|
|
|
|
Fair Value as of December 31,
|
||||||
Derivatives Not Designated as Hedging Instruments
|
|
Consolidated Balance Sheet Location
|
|
2018
|
|
2017
|
||||
Interest rate swaps
|
|
Other accrued liabilities
|
|
$
|
—
|
|
|
$
|
(7,119
|
)
|
Total
|
|
|
|
$
|
—
|
|
|
$
|
(7,119
|
)
|
|
|
Amount of (Loss) Gain
Recognized in OCI on Derivative, Effective Portion
|
||||||||||
|
|
Year Ended December 31,
|
||||||||||
Derivatives in Cash Flow Hedging Relationships
|
|
2018
|
|
2017
|
|
2016
|
||||||
Foreign exchange contracts
|
|
$
|
(8,250
|
)
|
|
$
|
13,205
|
|
|
$
|
(6,413
|
)
|
Interest rate swaps
|
|
1,907
|
|
|
2,583
|
|
|
(3,446
|
)
|
|||
Total
|
|
$
|
(6,343
|
)
|
|
$
|
15,788
|
|
|
$
|
(9,859
|
)
|
|
|
|
|
Amount of Loss (Gain) Reclassified from Accumulated
OCI into Income, Effective Portion
|
||||||||||
|
|
|
|
Year Ended December 31,
|
||||||||||
Derivatives in Cash Flow Hedging Relationships
|
|
Income Statement Location
|
|
2018
|
|
2017
|
|
2016
|
||||||
Foreign exchange contracts
|
|
Cost of revenue
|
|
$
|
(322
|
)
|
|
$
|
(3,001
|
)
|
|
$
|
1,991
|
|
Interest rate swaps
|
|
Interest Expense, net
|
|
3,999
|
|
|
5,083
|
|
|
2,336
|
|
|||
Total
|
|
|
|
$
|
3,677
|
|
|
$
|
2,082
|
|
|
$
|
4,327
|
|
|
|
|
Fair Value at Reporting Date Using
|
||||||||||||
|
December 31, 2018
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward contracts
|
$
|
(4,285
|
)
|
|
$
|
—
|
|
|
$
|
(4,285
|
)
|
|
$
|
—
|
|
Interest rate swap contracts
|
3,969
|
|
|
—
|
|
|
3,969
|
|
|
—
|
|
||||
Total
|
$
|
(316
|
)
|
|
$
|
—
|
|
|
$
|
(316
|
)
|
|
$
|
—
|
|
|
|
|
Fair Value at Reporting Date Using
|
||||||||||||
|
December 31, 2017
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward contracts
|
6,213
|
|
|
—
|
|
|
6,213
|
|
|
—
|
|
||||
Interest rate swap contracts
|
(3,170
|
)
|
|
—
|
|
|
(3,170
|
)
|
|
—
|
|
||||
Total
|
$
|
3,043
|
|
|
$
|
—
|
|
|
$
|
3,043
|
|
|
$
|
—
|
|
|
|
Fair Value at December 31,
|
|
Carrying Value
(4)
at December 31,
|
||||||||||||
Financial Instrument
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Term Loan A
|
|
$
|
520,000
|
|
|
$
|
559,223
|
|
|
$
|
525,514
|
|
|
$
|
553,444
|
|
Term Loan B
|
|
$
|
1,798,233
|
|
|
1,890,453
|
|
|
1,856,496
|
|
|
1,873,993
|
|
|||
Revolver, $400 million
(3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
5.375 % Senior Secured Notes Due 2023
|
|
529,799
|
|
|
546,563
|
|
|
530,000
|
|
|
530,000
|
|
||||
5.25% Senior Secured Notes Due 2023
|
|
495,248
|
|
|
512,500
|
|
|
500,000
|
|
|
500,000
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Exercise price
|
$
|
22.89
|
|
|
$
|
21.33
|
|
|
$
|
27.12
|
|
Average risk-free interest rate
|
2.72
|
%
|
|
2.10
|
%
|
|
1.81
|
%
|
|||
Expected life (in years)
|
6.11
|
|
|
6.11
|
|
|
6.11
|
|
|||
Implied volatility
|
23.17
|
%
|
|
22.02
|
%
|
|
23.44
|
%
|
|||
Dividend yield
|
2.46
|
%
|
|
2.64
|
%
|
|
1.92
|
%
|
(1)
|
Aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options awards and the closing price of our common stock of
$21.64
on
December 31, 2018
.
|
|
Quantity
|
|
Weighted-Average
Grant Date
Fair Value
|
|||
Unvested at December 31, 2017
|
4,709,785
|
|
|
$
|
23.77
|
|
Granted
|
2,948,187
|
|
|
22.56
|
|
|
Vested
|
(1,338,598
|
)
|
|
22.98
|
|
|
Cancelled
|
(706,487
|
)
|
|
23.04
|
|
|
Unvested at December 31, 2018
|
5,612,887
|
|
|
$
|
23.11
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Numerator:
|
|
|
|
|
|
|
|
|
|||
Income from continuing operations
|
$
|
340,921
|
|
|
$
|
249,576
|
|
|
$
|
241,390
|
|
Net income attributable to noncontrolling interests
|
5,129
|
|
|
5,113
|
|
|
4,377
|
|
|||
Net income from continuing operations available to common stockholders, basic and diluted
|
$
|
335,792
|
|
|
$
|
244,463
|
|
|
$
|
237,013
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|||
Basic weighted-average common shares outstanding
|
275,235
|
|
|
276,893
|
|
|
277,546
|
|
|||
Dilutive effect of stock options and restricted stock awards
|
2,283
|
|
|
1,427
|
|
|
5,206
|
|
|||
Diluted weighted-average common shares outstanding
|
277,518
|
|
|
278,320
|
|
|
282,752
|
|
|||
Basic earnings per share
|
$
|
1.22
|
|
|
$
|
0.88
|
|
|
$
|
0.85
|
|
Diluted earnings per share
|
$
|
1.21
|
|
|
$
|
0.88
|
|
|
$
|
0.84
|
|
|
Year Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
Change in benefit obligation:
|
|
|
|
|
|
||
Benefit obligation at January 1
|
$
|
(459,439
|
)
|
|
$
|
(444,662
|
)
|
Service cost
|
—
|
|
|
—
|
|
||
Interest cost
|
(17,090
|
)
|
|
(18,731
|
)
|
||
Actuarial gain (loss), net
|
18,529
|
|
|
(26,169
|
)
|
||
Benefits paid
|
29,784
|
|
|
30,123
|
|
||
Benefit obligation at December 31
|
$
|
(428,216
|
)
|
|
$
|
(459,439
|
)
|
Change in plan assets:
|
|
|
|
|
|
||
Fair value of assets at January 1
|
$
|
347,773
|
|
|
$
|
324,471
|
|
Actual return on plan assets
|
(25,333
|
)
|
|
46,425
|
|
||
Employer contributions
|
19,800
|
|
|
7,000
|
|
||
Benefits paid
|
(29,785
|
)
|
|
(30,123
|
)
|
||
Fair value of assets at December 31
|
$
|
312,455
|
|
|
$
|
347,773
|
|
Unfunded status at December 31
|
$
|
(115,761
|
)
|
|
$
|
(111,666
|
)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Net actuarial loss
|
$
|
(151,444
|
)
|
|
$
|
(115,701
|
)
|
Prior service credit
|
11,322
|
|
|
12,433
|
|
||
Accumulated other comprehensive loss
|
$
|
(140,122
|
)
|
|
$
|
(103,268
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Interest cost
|
$
|
17,090
|
|
|
$
|
18,731
|
|
|
$
|
20,041
|
|
Expected return on plan assets
|
(18,790
|
)
|
|
(20,934
|
)
|
|
(20,803
|
)
|
|||
Amortization of prior service credit
|
(1,432
|
)
|
|
(1,432
|
)
|
|
(1,432
|
)
|
|||
Amortization of actuarial loss
|
7,362
|
|
|
6,517
|
|
|
5,871
|
|
|||
Net cost
|
$
|
4,230
|
|
|
$
|
2,882
|
|
|
$
|
3,677
|
|
Weighted-average discount rate used to measure benefit obligations
|
4.41
|
%
|
|
3.81
|
%
|
|
4.36
|
%
|
|||
Weighted average assumptions used to determine net benefit cost:
|
|
|
|
|
|
||||||
Discount rate
|
3.81
|
%
|
|
4.36
|
%
|
|
4.86
|
%
|
|||
Expected return on plan assets
|
5.75
|
%
|
|
6.50
|
%
|
|
6.50
|
%
|
Obligations Recognized in
|
Year Ended December 31,
|
||||||||||
Other Comprehensive Income
|
2018
|
|
2017
|
|
2016
|
||||||
Net actuarial loss
|
$
|
25,595
|
|
|
$
|
679
|
|
|
$
|
27,023
|
|
Amortization of actuarial loss
|
(7,362
|
)
|
|
(6,517
|
)
|
|
(5,871
|
)
|
|||
Amortization of prior service credit
|
1,432
|
|
|
1,432
|
|
|
1,432
|
|
|||
Total (income) loss recognized in other comprehensive income
|
$
|
19,665
|
|
|
$
|
(4,406
|
)
|
|
$
|
22,584
|
|
Total recognized in net periodic benefit cost and other comprehensive income
|
$
|
23,895
|
|
|
$
|
(1,524
|
)
|
|
$
|
26,261
|
|
|
Fair Value Measurements at December 31, 2018
|
||||||||||||||
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
Common collective trusts:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed income securities
|
$
|
—
|
|
|
$
|
181,156
|
|
|
$
|
—
|
|
|
$
|
181,156
|
|
Global equity securities
|
—
|
|
|
108,152
|
|
|
—
|
|
|
108,152
|
|
||||
Money market mutual fund
|
2,311
|
|
|
—
|
|
|
—
|
|
|
2,311
|
|
||||
Real estate
|
—
|
|
|
—
|
|
|
20,836
|
|
|
20,836
|
|
||||
Total assets at fair value
|
$
|
2,311
|
|
|
$
|
289,308
|
|
|
$
|
20,836
|
|
|
$
|
312,455
|
|
|
Fair Value Measurements at December 31, 2017
|
||||||||||||||
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
Common collective trusts:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed income securities
|
$
|
—
|
|
|
$
|
191,125
|
|
|
$
|
—
|
|
|
$
|
191,125
|
|
Global equity securities
|
—
|
|
|
134,378
|
|
|
—
|
|
|
134,378
|
|
||||
Money market mutual fund
|
2,815
|
|
|
—
|
|
|
—
|
|
|
2,815
|
|
||||
Real estate
|
—
|
|
|
—
|
|
|
19,455
|
|
|
19,455
|
|
||||
Total assets at fair value
|
$
|
2,815
|
|
|
$
|
325,503
|
|
|
$
|
19,455
|
|
|
$
|
347,773
|
|
|
Real Estate
|
||
Ending balance at December 31, 2016
|
$
|
18,519
|
|
Contributions
|
279
|
|
|
Net distributions
|
(279
|
)
|
|
Advisory fee
|
(200
|
)
|
|
Net investment income
|
820
|
|
|
Unrealized gain
|
253
|
|
|
Net realized loss
|
63
|
|
|
Ending balance at December 31, 2017
|
19,455
|
|
|
Contributions
|
307
|
|
|
Net distributions
|
(307
|
)
|
|
Advisory fee
|
(198
|
)
|
|
Net investment income
|
845
|
|
|
Unrealized gain
|
717
|
|
|
Net realized gain
|
17
|
|
|
Ending balance at December 31, 2018
|
$
|
20,836
|
|
|
Amount
|
||
2019
|
$
|
26,940
|
|
2020
|
30,090
|
|
|
2021
|
31,927
|
|
|
2022
|
31,694
|
|
|
2023
|
30,627
|
|
|
2024-2028
|
167,640
|
|
|
Amount
|
||
2019
|
$
|
27,171
|
|
2020
|
18,350
|
|
|
2021
|
12,438
|
|
|
2022
|
9,029
|
|
|
2023
|
6,149
|
|
|
Thereafter
|
13,429
|
|
|
Total
|
$
|
86,566
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Revenue
|
|
|
|
|
|
||||||
Travel Network
|
$
|
2,806,194
|
|
|
$
|
2,550,470
|
|
|
$
|
2,374,849
|
|
Airline Solutions
|
822,747
|
|
|
816,008
|
|
|
794,637
|
|
|||
Hospitality Solutions
|
273,079
|
|
|
258,352
|
|
|
224,669
|
|
|||
Eliminations
|
(35,064
|
)
|
|
(26,346
|
)
|
|
(20,768
|
)
|
|||
Total revenue
|
$
|
3,866,956
|
|
|
$
|
3,598,484
|
|
|
$
|
3,373,387
|
|
Adjusted Gross Profit
(a)
|
|
|
|
|
|
|
|
|
|||
Travel Network
|
$
|
1,098,052
|
|
|
$
|
1,071,249
|
|
|
$
|
1,039,561
|
|
Airline Solutions
|
355,079
|
|
|
366,255
|
|
|
354,922
|
|
|||
Hospitality Solutions
|
83,333
|
|
|
88,477
|
|
|
72,497
|
|
|||
Corporate
|
(15,056
|
)
|
|
(25,795
|
)
|
|
(6,305
|
)
|
|||
Total
|
$
|
1,521,408
|
|
|
$
|
1,500,186
|
|
|
$
|
1,460,675
|
|
Adjusted Operating Income
(b)
|
|
|
|
|
|
||||||
Travel Network
|
$
|
755,811
|
|
|
$
|
746,625
|
|
|
$
|
738,134
|
|
Airline Solutions
|
111,146
|
|
|
137,932
|
|
|
136,177
|
|
|||
Hospitality Solutions
|
12,881
|
|
|
9,670
|
|
|
16,807
|
|
|||
Corporate
|
(178,406
|
)
|
|
(188,078
|
)
|
|
(170,757
|
)
|
|||
Total
|
$
|
701,432
|
|
|
$
|
706,149
|
|
|
$
|
720,361
|
|
Adjusted EBITDA
(c)
|
|
|
|
|
|
|
|
|
|||
Travel Network
|
$
|
951,709
|
|
|
$
|
923,615
|
|
|
$
|
886,630
|
|
Airline Solutions
|
293,577
|
|
|
296,437
|
|
|
286,362
|
|
|||
Hospitality Solutions
|
52,824
|
|
|
42,784
|
|
|
39,964
|
|
|||
Total segments
|
1,298,110
|
|
|
1,262,836
|
|
|
1,212,956
|
|
|||
Corporate
|
(173,720
|
)
|
|
(184,265
|
)
|
|
(166,310
|
)
|
|||
Total
|
$
|
1,124,390
|
|
|
$
|
1,078,571
|
|
|
$
|
1,046,646
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|||
Travel Network
|
$
|
118,276
|
|
|
$
|
109,579
|
|
|
$
|
92,772
|
|
Airline Solutions
|
182,431
|
|
|
158,505
|
|
|
150,185
|
|
|||
Hospitality Solutions
|
39,943
|
|
|
33,114
|
|
|
23,157
|
|
|||
Total segments
|
340,650
|
|
|
301,198
|
|
|
266,114
|
|
|||
Corporate
|
72,694
|
|
|
99,673
|
|
|
147,872
|
|
|||
Total
|
$
|
413,344
|
|
|
$
|
400,871
|
|
|
$
|
413,986
|
|
Capital Expenditures
|
|
|
|
|
|
|
|
|
|||
Travel Network
|
$
|
64,943
|
|
|
$
|
90,881
|
|
|
$
|
97,798
|
|
Airline Solutions
|
98,374
|
|
|
116,948
|
|
|
126,558
|
|
|||
Hospitality Solutions
|
39,160
|
|
|
43,443
|
|
|
42,404
|
|
|||
Total segments
|
202,477
|
|
|
251,272
|
|
|
266,760
|
|
|||
Corporate
|
81,463
|
|
|
65,165
|
|
|
60,887
|
|
|||
Total
|
$
|
283,940
|
|
|
$
|
316,437
|
|
|
$
|
327,647
|
|
(a)
|
The following table sets forth the reconciliation of Adjusted Gross Profit to operating income in our statement of operations (in thousands):
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Adjusted Gross Profit
|
$
|
1,521,408
|
|
|
$
|
1,500,186
|
|
|
$
|
1,460,675
|
|
Less adjustments:
|
|
|
|
|
|
|
|
|
|||
Selling, general and administrative
|
513,526
|
|
|
510,075
|
|
|
626,153
|
|
|||
Impairment and related charges
(7)
|
—
|
|
|
81,112
|
|
|
—
|
|
|||
Cost of revenue adjustments:
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
(1)
|
341,653
|
|
|
317,812
|
|
|
287,353
|
|
|||
Amortization of upfront incentive consideration
(2)
|
77,622
|
|
|
67,411
|
|
|
55,724
|
|
|||
Restructuring and other costs
(4)
|
—
|
|
|
12,604
|
|
|
12,660
|
|
|||
Stock-based compensation
|
26,591
|
|
|
17,732
|
|
|
19,213
|
|
|||
Operating income
|
$
|
562,016
|
|
|
$
|
493,440
|
|
|
$
|
459,572
|
|
(b)
|
The following table sets forth the reconciliation of Adjusted Operating Income to operating income in our statement of operations (in thousands):
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Adjusted Operating income
|
$
|
701,432
|
|
|
$
|
706,149
|
|
|
$
|
720,361
|
|
Less adjustments:
|
|
|
|
|
|
||||||
Joint venture equity income
|
2,556
|
|
|
2,580
|
|
|
2,780
|
|
|||
Impairment and related charges
(7)
|
—
|
|
|
81,112
|
|
|
—
|
|
|||
Acquisition-related amortization
(1c)
|
68,008
|
|
|
95,860
|
|
|
143,425
|
|
|||
Restructuring and other costs
(4)
|
—
|
|
|
23,975
|
|
|
18,286
|
|
|||
Acquisition-related costs
(5)
|
3,266
|
|
|
—
|
|
|
779
|
|
|||
Litigation (reimbursements) costs
(6)
|
8,323
|
|
|
(35,507
|
)
|
|
46,995
|
|
|||
Stock-based compensation
|
57,263
|
|
|
44,689
|
|
|
48,524
|
|
|||
Operating income
|
$
|
562,016
|
|
|
$
|
493,440
|
|
|
$
|
459,572
|
|
(c)
|
The following table sets forth the reconciliation of Adjusted EBITDA to income from continuing operations in our statement of operations (in thousands):
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Adjusted EBITDA
|
$
|
1,124,390
|
|
|
$
|
1,078,571
|
|
|
$
|
1,046,646
|
|
Less adjustments:
|
|
|
|
|
|
|
|
|
|||
Impairment and related charges
(7)
|
—
|
|
|
81,112
|
|
|
—
|
|
|||
Depreciation and amortization of property and equipment
(1a)
|
303,612
|
|
|
264,880
|
|
|
233,303
|
|
|||
Amortization of capitalized implementation costs
(1b)
|
41,724
|
|
|
40,131
|
|
|
37,258
|
|
|||
Acquisition-related amortization
(1c)
|
68,008
|
|
|
95,860
|
|
|
143,425
|
|
|||
Amortization of upfront incentive consideration
(2)
|
77,622
|
|
|
67,411
|
|
|
55,724
|
|
|||
Interest expense, net
|
157,017
|
|
|
153,925
|
|
|
158,251
|
|
|||
Loss on extinguishment of debt
|
633
|
|
|
1,012
|
|
|
3,683
|
|
|||
Other, net
(3)
|
8,509
|
|
|
(36,530
|
)
|
|
(27,617
|
)
|
|||
Restructuring and other costs
(4)
|
—
|
|
|
23,975
|
|
|
18,286
|
|
|||
Acquisition-related costs
(5)
|
3,266
|
|
|
—
|
|
|
779
|
|
|||
Litigation (reimbursements) costs
(6)
|
8,323
|
|
|
(35,507
|
)
|
|
46,995
|
|
|||
Stock-based compensation
|
57,263
|
|
|
44,689
|
|
|
48,524
|
|
|||
Provision for income taxes
(8)
|
57,492
|
|
|
128,037
|
|
|
86,645
|
|
|||
Income from continuing operations
|
$
|
340,921
|
|
|
$
|
249,576
|
|
|
$
|
241,390
|
|
(1)
|
Depreciation and amortization expenses (see Note
1. Summary of Business and Significant Accounting Policies
for associated asset lives):
|
a.
|
Depreciation and amortization of property and equipment includes software developed for internal use.
|
b.
|
Amortization of capitalized implementation costs represents amortization of upfront costs to implement new customer contracts under our SaaS and hosted revenue model.
|
c.
|
Acquisition-related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date.
|
(2)
|
Our Travel Network business at times provides upfront incentive consideration to travel agency subscribers at the inception or modification of a service contract, which are capitalized and amortized to cost of revenue over an average expected life of the service contract, generally over
three
to
five
years. This consideration is made with the objective of increasing the number of clients or to ensure or improve customer loyalty. These service contract terms are established such that the supplier and other fees generated over the life of the contract will exceed the cost of the incentive consideration provided up front. These service contracts with travel agency subscribers require that the customer commit to achieving certain economic objectives and generally have terms requiring repayment of the upfront incentive consideration if those objectives are not met.
|
(3)
|
I
n
2018, Other, net, includes an expense of
$5 million
related to our liability under the Tax Receivable Agreement ("TRA") offset by a gain of
$8 million
on the sale of an investment. In 2017, we recognized a benefit of
$60 million
due to a reduction to our liability under the TRA primarily due to a provisional adjustment resulting from the enactment of TCJA which reduced the U.S. corporate income tax rate (see Note
7. Income Taxes
), offset by a loss of
$15 million
related to debt modification costs associated with a debt refinancing. In 2016, we recognized a gain of
$15 million
from the sale of our available-for-sale marketable securities, and a
$6 million
gain associated with the receipt of an earn-out payment from the sale of a business in 2013. In addition, all periods presented include foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency.
|
(4)
|
Restructuring and other costs represents charges associated with business restructuring and associated changes implemented which resulted in severance benefits related to employee terminations, integration and facility opening or closing costs and other business reorganization costs. We recorded
$25 million
and
$20 million
in charges associated with an announced action to reduce our workforce in 2017 and 2016, respectively. These reductions aligned our operations with business needs and implemented an ongoing cost and organizational structure consistent with our expected growth needs and opportunities. In 2015, we recognized a restructuring charge of
$9 million
associated with the integration of Abacus, and reduced that estimate by
$4 million
in 2016, as a result of the reevaluation of our plan derived from a shift in timing and strategy of originally contemplated actions. As of December 31, 2018, our actions under these activities have been substantially completed and payments under the plan have been made.
|
(5)
|
Acquisition-related costs represent fees and expenses incurred associated with the 2018 agreement to acquire Farelogix, which is anticipated to close in 2019, and in 2016, the acquisition of the Trust Group and Airpas Aviation. See Note
3. Acquisitions
.
|
(6)
|
Litigation costs (reimbursements), net represent charges associated with antitrust and other foreign non-income tax contingency matters. In 2018, we recorded non-income tax expense of
$5 million
for tax, penalties and interest associated with certain non-income tax claims for historical periods regarding permanent establishment in a foreign jurisdiction. In 2017, we recorded a
$43 million
reimbursement, net of accrued legal and related expenses, from a settlement with our insurance carriers with respect to the American Airlines litigation. In 2016, we recorded an accrual of
$32 million
representing the trebling of the jury award plus our estimate of attorneys’ fees, expenses and costs in the US Airways litigation. See Note
15. Commitments and Contingencies
.
|
(7)
|
Impairment and related charges represents an
$81 million
impairment charge recorded in 2017 associated with net capitalized contract costs related to an Airline Solutions' customer based on our analysis of the recoverability of such amounts. See Note
4. Impairment and Related Charges
for additional information.
|
(8)
|
The tax impact on net income adjustments includes the tax effect of each separate adjustment based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible, and the tax effect of items that relate to tax specific financial transactions, tax law changes, uncertain tax positions and other items
.
In 2018, the provision for income taxes includes a benefit of
$27 million
related to the enactment of the TCJA for deferred taxes and foreign tax effects. In 2017, provision for income taxes includes a provisional impact of
$47 million
recognized as a result of the enactment of the TCJA in December 2017. See Note
7. Income Taxes
.
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
Revenue
|
$
|
988,369
|
|
|
$
|
984,376
|
|
|
$
|
970,283
|
|
|
$
|
923,928
|
|
Operating income
|
165,401
|
|
|
138,833
|
|
|
136,763
|
|
|
121,019
|
|
||||
Income (loss) from continuing operations
|
90,449
|
|
|
92,565
|
|
|
70,879
|
|
|
87,028
|
|
||||
(Loss) income from discontinued operations, net of tax
|
(1,207
|
)
|
|
760
|
|
|
3,664
|
|
|
(1,478
|
)
|
||||
Net income (loss)
|
89,242
|
|
|
93,325
|
|
|
74,543
|
|
|
85,550
|
|
||||
Net income (loss) attributable to common stockholders
|
87,880
|
|
|
92,246
|
|
|
73,005
|
|
|
84,400
|
|
||||
Net income (loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
0.32
|
|
|
0.33
|
|
|
0.26
|
|
|
0.31
|
|
||||
Diluted
|
0.32
|
|
|
0.33
|
|
|
0.26
|
|
|
0.30
|
|
|
Year Ended December 31, 2017
|
||||||||||||||
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
Revenue
|
$
|
915,353
|
|
|
$
|
900,663
|
|
|
$
|
900,606
|
|
|
$
|
881,862
|
|
Operating income
|
163,326
|
|
|
18,718
|
|
|
176,796
|
|
|
134,600
|
|
||||
Income from continuing operations
|
77,722
|
|
|
(4,152
|
)
|
|
92,825
|
|
|
83,181
|
|
||||
Income (loss) from discontinued operations, net of tax
|
(477
|
)
|
|
(1,222
|
)
|
|
(529
|
)
|
|
296
|
|
||||
Net income
|
77,245
|
|
|
(5,374
|
)
|
|
92,296
|
|
|
83,477
|
|
||||
Net income attributable to common stockholders
|
75,939
|
|
|
(6,487
|
)
|
|
90,989
|
|
|
82,090
|
|
||||
Net income per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
0.28
|
|
|
(0.02
|
)
|
|
0.33
|
|
|
0.30
|
|
||||
Diluted
|
0.27
|
|
|
(0.02
|
)
|
|
0.33
|
|
|
0.30
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
•
|
“Certain Information Regarding Nominees for Director” under “Proposal 1. Election of Directors,” which identifies our directors and nominees for our Board of Directors, and "Other Corporate Governance Practices and Matters—Stockholders’ Agreement” under “Corporate Governance.”
|
•
|
"Other Information—“Section 16(a) Beneficial Ownership Reporting Compliance.”
|
•
|
“Corporate Governance—Other Corporate Governance Practices and Policies—Code of Business Ethics,” which describes our Code of Business Ethics.
|
•
|
“Corporate Governance—Stockholder Nominations for Directors,” which describes the procedures by which stockholders may nominate candidates for election to our Board of Directors.
|
•
|
“Corporate Governance—Board Committees—Audit Committee," which identifies members of the Audit Committee of our Board of Directors and audit committee financial experts.
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
|
Number of securities to be issued upon exercise of outstanding options (a)
|
|
Weighted average exercise price of outstanding options (b)
|
|
Number of securities remaining available for future issuance under equity compensation plans
|
||
Equity compensation plans approved by stockholders
|
11,528,900
|
|
$
|
20.80
|
|
|
10,357,631
|
(a)
|
Includes shares of common stock to be issued upon the exercise of outstanding options under our 2016 Omnibus Plan, 2014 Omnibus Plan, the Sovereign 2012 MEIP and the Sovereign MEIP. Also includes
7,331,657
restricted share units under our 2016 Omnibus Plan and 2014 Omnibus Plan (including shares that may be issued pursuant to outstanding performance-based restricted share units, assuming the target award is met; actual shares may vary, depending on actual performance).
|
(b)
|
Excludes restricted share units which do not have an exercise price.
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
1.
|
Financial statements.
The financial statements are set forth under Item 8 of this Annual Report on Form 10-K.
|
2.
|
Financial statement schedules.
Schedule II Valuation and Qualifying Accounts is filed as part of this Annual Report on Form 10-K and should be read in conjunction with the financial statements and notes thereto contained in Item 8.
|
3.
|
Exhibits.
|
Exhibit
Number
|
|
Description of Exhibits
|
2.1
|
|
|
2.2
|
|
|
3.1
|
|
|
3.2
|
|
|
3.43
|
|
|
3.54
|
|
|
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
|
10.1
|
|
|
10.2
|
|
Exhibit
Number
|
|
Description of Exhibits
|
10.3
|
|
|
10.4
|
|
|
10.5
|
|
|
10.6
|
|
|
10.7+
|
|
|
10.8+
|
|
|
10.9+
|
|
|
10.10+
|
|
|
10.11+
|
|
|
10.12+
|
|
|
10.13+
|
|
|
10.14+
|
|
|
10.15
|
|
|
10.16
|
|
|
10.17
|
|
|
10.18
|
|
Exhibit
Number
|
|
Description of Exhibits
|
10.19
|
|
|
10.20+
|
|
|
10.21+
|
|
|
10.22+
|
|
|
10.23+
|
|
|
10.24+
|
|
|
10.25+
|
|
|
10.26+
|
|
|
10.27
|
|
|
10.28+
|
|
|
10.29+
|
|
|
10.30
|
|
|
10.31+
|
|
|
10.32
|
|
|
10.33
|
|
|
10.34+
|
|
|
10.35†
|
|
|
10.36+
|
|
|
10.37+
|
|
Exhibit
Number
|
|
Description of Exhibits
|
10.38+
|
|
|
10.39
|
|
|
10.40
|
|
|
10.41
|
|
|
10.42
|
|
|
10.43
|
|
|
10.44+
|
|
|
10.45+
|
|
|
10.46
|
|
|
10.47
|
|
|
10.48+
|
|
|
10.49+
|
|
|
10.50
|
|
|
10.51
|
|
|
10.52
|
|
|
10.53
|
|
|
Exhibit
Number
|
|
Description of Exhibits
|
10.54+
|
|
|
10.55+
|
|
|
10.56+
|
|
|
10.57
|
|
|
10.58+
|
|
|
10.59+
|
|
|
10.60+
|
|
|
10.61+
|
|
|
10.62+
|
|
|
10.63+
|
|
|
10.64+
|
|
|
10.65+
|
|
|
10.66+
|
|
|
10.67+
|
|
|
21.1*
|
|
|
23.1*
|
|
|
24.1*
|
|
|
31.1*
|
|
|
31.2*
|
|
|
32.1*
|
|
|
32.2*
|
|
|
101.INS*
|
|
XBRL Instance Document
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase
|
+
|
Indicates management contract or compensatory plan or arrangement.
|
†
|
Confidential treatment has been granted to portions of this exhibit by the Securities and Exchange Commission.
|
*
|
Filed herewith.
|
ITEM 16.
|
FORM 10-K SUMMARY
|
|
|
|
SABRE CORPORATION
|
|
|
|
|
Date:
|
February 15, 2019
|
By:
|
/s/ Douglas E. Barnett
|
|
|
|
Douglas E. Barnett
|
|
|
|
Executive Vice President and
|
|
|
|
Chief Financial Officer
|
/s/ Sean Menke
|
|
President and Chief Executive Officer and Director
|
February 15, 2019
|
Sean Menke
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/s/ Douglas E. Barnett
|
|
Executive Vice President and Chief Financial Officer
|
February 15, 2019
|
Douglas E. Barnett
|
|
(Principal Financial Officer)
|
|
|
|
|
|
/s/ Jami B. Kindle
|
|
Vice President and Corporate Controller
|
February 15, 2019
|
Jami B. Kindle
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
/s/ Lawrence W. Kellner
|
|
Chairman of the Board and Director
|
February 15, 2019
|
Lawrence W. Kellner
|
|
|
|
|
|
|
|
/s/ George Bravante, Jr.
|
|
Director
|
February 15, 2019
|
George Bravante, Jr.
|
|
|
|
|
|
|
|
/s/ Hervé Couturier
|
|
Director
|
February 15, 2019
|
Hervé Couturier
|
|
|
|
|
|
|
|
/s/ Renée James
|
|
Director
|
February 15, 2019
|
Renée James
|
|
|
|
|
|
|
|
/s/ Gary Kusin
|
|
Director
|
February 15, 2019
|
Gary Kusin
|
|
|
|
|
|
|
|
/s/ Judy Odom
|
|
Director
|
February 15, 2019
|
Judy Odom
|
|
|
|
|
|
|
|
/s/ Joseph Osnoss
|
|
Director
|
February 15, 2019
|
Joseph Osnoss
|
|
|
|
|
|
|
|
/s/ Karl Peterson
|
|
Director
|
February 15, 2019
|
Karl Peterson
|
|
|
|
|
|
|
|
/s/ Zane Rowe
|
|
Director
|
February 15, 2019
|
Zane Rowe
|
|
|
|
|
Balance at
Beginning
|
|
Charged to
Expense or
Other Accounts
|
|
Write-offs and
Other Adjustments
|
|
Balance at
End of Period
|
||||||||
Allowance for Doubtful Accounts
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2018
|
$
|
43.0
|
|
|
$
|
7.7
|
|
|
$
|
(5.4
|
)
|
|
$
|
45.3
|
|
Year ended December 31, 2017
|
$
|
37.1
|
|
|
$
|
9.5
|
|
|
$
|
(3.6
|
)
|
|
$
|
43.0
|
|
Year ended December 31, 2016
|
$
|
32.3
|
|
|
$
|
10.6
|
|
|
$
|
(5.8
|
)
|
|
$
|
37.1
|
|
Valuation Allowance for Deferred Tax Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2018
|
$
|
59.0
|
|
|
$
|
4.7
|
|
|
$
|
(4.4
|
)
|
|
$
|
59.3
|
|
Year ended December 31, 2017
|
$
|
74.5
|
|
|
$
|
(8.8
|
)
|
|
$
|
(6.7
|
)
|
|
$
|
59.0
|
|
Year ended December 31, 2016
|
$
|
80.7
|
|
|
$
|
1.1
|
|
|
$
|
(7.3
|
)
|
|
$
|
74.5
|
|
Reserve for Value-Added Tax Receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2018
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Year ended December 31, 2017
|
$
|
0.3
|
|
|
$
|
—
|
|
|
$
|
(0.3
|
)
|
|
$
|
—
|
|
Year ended December 31, 2016
|
$
|
1.8
|
|
|
$
|
(1.6
|
)
|
|
$
|
0.1
|
|
|
$
|
0.3
|
|
1 Year Sabre Chart |
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