---

---

UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

---

FORM 10-Q

|ý                                                  | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 
|-------------------------------------------------- | ----------------------------------------------------------------------------------------
|For the Quarterly Period Ended September 30, 2003.
|OR                                                
|o                                                  | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period From  To

Commission file number 1-12175.

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GRAPHICSABRE HOLDINGS CORPORATION(Exact name of registrant as specified in its charter)

Delaware(State or other jurisdiction of incorporation or organization)

75-2662240(I.R.S. Employer Identification No.)3150 Sabre Drive, Southlake, Texas(Address of principal executive offices)

76092(Zip Code)


Registrant's telephone number, including area code(682) 605-1000

Not Applicable(Former name, former address and former fiscal year, if changed since last report)

---

Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes ý    No o

Indicate
by checkmark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange
Act). Yes ý    No o

Indicate
the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class A
Common Stock, $.01 par value143,466,253 as of November 7, 2003

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---

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INDEX  SABRE HOLDINGS CORPORATION

|PART I:   | FINANCIAL INFORMATION                                                                         |    | 3 
|--------- | --------------------------------------------------------------------------------------------- | -- | --
|Item 1.   | Financial Statements (Unaudited)                                                              |    | 3 
|          | Consolidated Balance SheetsSeptember 30, 2003 and December 31, 2002                          |    | 3 
|          | Consolidated Statements of IncomeThree and nine months ended September 30, 2003 and 2002     |    | 4 
|          | Condensed Consolidated Statement of Stockholders' EquityNine months ended September 30, 2003 |    | 5 
|          | Consolidated Statements of Cash FlowsNine months ended September 30, 2003 and 2002           |    | 6 
|          | Notes to Consolidated Financial Statements                                                    |    | 7 
|Item 2.   | Management's Discussion and Analysis of Financial Condition and Results of Operations         |    | 31
|Item 3.   | Quantitative and Qualitative Disclosures About Market Risk                                    |    | 52
|Item 4.   | Controls and Procedures                                                                       |    | 52
|PART II:  | OTHER INFORMATION                                                                             |    | 53
|Item 1.   | Legal Proceedings                                                                             |    | 53
|Item 6.   | Exhibits and Reports on Form 8-K                                                              |    | 53
|SIGNATURE |                                                                                               | 55

2

---



PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

SABRE HOLDINGS CORPORATION  CONSOLIDATED BALANCE SHEETS  (Unaudited) (In thousands)

|                                           |                                                                                                                                                               | September 30,
2003                         |         | December 31,
2002 |          
|------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ------- | ----------------- | ---------
|Assets                                     |                                                                                                                                                               |                                            |         |                   |          
|Current assets                             |                                                                                                                                                               |                                            |         |                   |          
|                                           | Cash                                                                                                                                                          |                                            | $       | 26,484            |          
|                                           | Marketable securities                                                                                                                                         |                                            |         | 985,863           |          
|                                           | Accounts receivable, net                                                                                                                                      |                                            |         | 372,623           |          
|                                           | Prepaid expenses and other current assets                                                                                                                     |                                            |         | 106,117           |          
|                                           | Deferred income taxes                                                                                                                                         |                                            |         | 17,081            |          
|                                           |                                                                                                                                                               |                                            |         |                   |          
|                                           |                                                                                                                                                               | Total current assets                       |         |                   | 1,508,168
|Property and equipment                     |                                                                                                                                                               |                                            |         |                   |          
|                                           | Buildings and leasehold improvements                                                                                                                          |                                            |         | 318,930           |          
|                                           | Furniture, fixtures and equipment                                                                                                                             |                                            |         | 44,909            |          
|                                           | Computer software and equipment                                                                                                                               |                                            |         | 265,261           |          
|                                           |                                                                                                                                                               |                                            |         |                   |          
|                                           |                                                                                                                                                               |                                            | 629,100 |                   |          
|                                           | Less accumulated depreciation and amortization                                                                                                                |                                            |         | (232,007          | )        
|                                           |                                                                                                                                                               |                                            |         |                   |          
|                                           |                                                                                                                                                               | Total property and equipment               |         |                   | 397,093  
|Investments in joint ventures              |                                                                                                                                                               |                                            | 177,973 |                   |          
|Goodwill and intangible assets, net        |                                                                                                                                                               |                                            | 812,226 |                   |          
|Other assets, net                          |                                                                                                                                                               |                                            | 137,936 |                   |          
|                                           |                                                                                                                                                               |                                            |         |                   |          
|                                           |                                                                                                                                                               | Total assets                               |         | $                 | 3,033,396
|                                           |                                                                                                                                                               |                                            |         |                   |          
|Liabilities and stockholders' equity       |                                                                                                                                                               |                                            |         |                   |          
|Current liabilities                        |                                                                                                                                                               |                                            |         |                   |          
|                                           | Accounts payable                                                                                                                                              |                                            | $       | 179,248           |          
|                                           | Accrued compensation and related benefits                                                                                                                     |                                            |         | 56,681            |          
|                                           | Accrued subscriber incentives                                                                                                                                 |                                            |         | 68,838            |          
|                                           | Deferred revenues                                                                                                                                             |                                            |         | 39,186            |          
|                                           | Other accrued liabilities                                                                                                                                     |                                            |         | 179,224           |          
|                                           |                                                                                                                                                               |                                            |         |                   |          
|                                           |                                                                                                                                                               | Total current liabilities                  |         |                   | 523,177  
|Deferred income taxes                      |                                                                                                                                                               |                                            | 10,044  |                   |          
|Pensions and other postretirement benefits |                                                                                                                                                               |                                            | 117,812 |                   |          
|Other liabilities                          |                                                                                                                                                               |                                            | 34,175  |                   |          
|Minority interests                         |                                                                                                                                                               |                                            | 11,602  |                   |          
|Notes payable                              |                                                                                                                                                               |                                            | 433,930 |                   |          
|Obligation under capital lease             |                                                                                                                                                               |                                            | 162,915 |                   |          
|Commitments and contingencies              |                                                                                                                                                               |                                            |         |                   |          
|Stockholders' equity                       |                                                                                                                                                               |                                            |         |                   |          
|                                           | Preferred stock: $0.01 par value; 20,000 shares authorized; no shares issued                                                                                  |                                            |         |                  |          
|                                           | Class A common stock, $0.01 par value; 250,000 shares authorized; 145,795 and 144,775 shares issued at September 30, 2003 and December 31, 2002, respectively |                                            |         | 1,459             |          
|                                           | Additional paid-in capital                                                                                                                                    |                                            |         | 1,289,397         |          
|                                           | Retained earnings                                                                                                                                             |                                            |         | 519,196           |          
|                                           | Accumulated other comprehensive loss                                                                                                                          |                                            |         | (15,385           | )        
|                                           | Less treasury stock at cost: 2,166 and 2,172 shares, respectively                                                                                             |                                            |         | (54,926           | )        
|                                           |                                                                                                                                                               |                                            |         |                   |          
|                                           |                                                                                                                                                               | Total stockholders' equity                 |         |                   | 1,739,741
|                                           |                                                                                                                                                               |                                            |         |                   |          
|                                           |                                                                                                                                                               | Total liabilities and stockholders' equity |         | $                 | 3,033,396
|                                           |                                                                                                                                                               |                                            |         |                   |          

See Notes to Consolidated Financial Statements

3

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SABRE HOLDINGS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (In thousands, except per share amounts)

|                                         |                                     | Three Months Ended
September 30, |         | Nine Months Ended
September 30, |        
|---------------------------------------- | ----------------------------------- | -------------------------------- | ------- | ------------------------------- | -------
|
|Revenues                                 |                                     | $                                | 526,793 |                                 | $      
|Operating expenses                       |                                     |                                  |         |                                 |        
|                                         | Cost of revenues                    |                                  |         | 328,578                         |        
|                                         | Selling, general and administrative |                                  |         | 133,461                         |        
|                                         | Amortization of intangible assets   |                                  |         | 20,888                          |        
|                                         |                                     |                                  |         |                                 |        
|                                         |                                     | Total operating expenses         |         |                                 | 482,927
|Operating income                         |                                     |                                  | 43,866  |                                 |        
|Other income (expense)                   |                                     |                                  |         |                                 |        
|                                         | Interest income                     |                                  |         | 4,156                           |        
|                                         | Interest expense                    |                                  |         | (6,790                          | )      
|                                         | Other, net                          |                                  |         | (839                            | )      
|                                         |                                     |                                  |         |                                 |        
|                                         |                                     | Total other income (expense)     |         |                                 | (3,473 
|Minority interests                       |                                     |                                  | (711    | )                               |        
|                                         |                                     |                                  |         |                                 |        
|Income before provision for income taxes |                                     |                                  | 39,682  |                                 |        
|Provision for income taxes               |                                     |                                  | 14,233  |                                 |        
|                                         |                                     |                                  |         |                                 |        
|Net earnings                             |                                     | $                                | 25,449  |                                 | $      
|                                         |                                     |                                  |         |                                 |        
|Earnings per common share                |                                     |                                  |         |                                 |        
|                                         | Basic                               |                                  | $       | .18                             |        
|                                         |                                     |                                  |         |                                 |        
|                                         | Diluted                             |                                  | $       | .18                             |        
|                                         |                                     |                                  |         |                                 |        
|Dividends per common share               |                                     | $                                | .07     |                                 | $      
|                                         |                                     |                                  |         |                                 |        

See
Notes to Consolidated Financial Statements

4

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SABRE HOLDINGS CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 2003
(Unaudited) (In thousands)

|                                                                                                                                           |                                                                                             | Class A
Common Stock |       | Additional
Paid-in Capital |   | Retained
Earnings |   | Accumulated Other Comprehensive Loss |         | Treasury
Stock |   | Total   |      
|------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------- | -------------------- | ----- | -------------------------- | - | ----------------- | - | ------------------------------------ | ------- | -------------- | - | ------- | -----
|Balance at December 31, 2002                                                                                                               |                                                                                             | $                    | 1,448 |                            | $ | 1,269,101         |   | $                                    | 442,130 |                | $ | (16,024 | )    
|Issuance of 1,020 shares of Class A
    common stock pursuant to stock
    option, restricted stock incentive
    and stock purchase plans |                                                                                             |                      | 10    |                            |   | 4,145             |   |                                      |        |                |   |        |      
|Tax benefit from exercise of
    employee stock options                                                                                    |                                                                                             |                      |      |                            |   | 586               |   |                                      |        |                |   |        |      
|Stock based compensation for
    employees                                                                                                 |                                                                                             |                      |      |                            |   | 13,892            |   |                                      |        |                |   |        |      
|Dividends                                                                                                                                  |                                                                                             |                      |      |                            |   |                  |   |                                      | (20,078 | )              |   |        |      
|Other                                                                                                                                      |                                                                                             |                      | 1     |                            |   | 1,673             |   |                                      |        |                |   |        |      
|Comprehensive income:                                                                                                                      |                                                                                             |                      |       |                            |   |                   |   |                                      |         |                |   |         |      
|                                                                                                                                           | Net earnings                                                                                |                      |       |                           |   |                   |  |                                      |         | 97,144         |   |         |     
|                                                                                                                                           | Unrealized loss on foreign
    currency forward contracts,
    net of deferred income taxes |                      |       |                           |   |                   |  |                                      |         |               |   |         | (830 
|                                                                                                                                           | Unrealized gain on investments,
    net of deferred income taxes                            |                      |       |                           |   |                   |  |                                      |         |               |   |         | 1,105
|                                                                                                                                           | Unrealized foreign currency
    translation gain                                            |                      |       |                           |   |                   |  |                                      |         |               |   |         | 364  
|                                                                                                                                           |                                                                                             |                      |       |                            |   |                   |   |                                      |         |                |   |         |      
|Total comprehensive income                                                                                                                 |                                                                                             |                      |       |                            |   |                   |   |                                      |         |                |   |         |      
|                                                                                                                                           |                                                                                             |                      |       |                            |   |                   |   |                                      |         |                |   |         |      
|Balance at September 30, 2003                                                                                                              |                                                                                             | $                    | 1,459 |                            | $ | 1,289,397         |   | $                                    | 519,196 |                | $ | (15,385 | )    
|                                                                                                                                           |                                                                                             |                      |       |                            |   |                   |   |                                      |         |                |   |         |      

See Notes to Consolidated Financial Statements.

5

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SABRE HOLDINGS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (In thousands)

|                                                                                |                                                  | Nine Months Ended September 30,                |           
|------------------------------------------------------------------------------- | ------------------------------------------------ | ---------------------------------------------- | ----------
|
|Operating Activities                                                            |                                                  |                                                |           
|Net earnings                                                                    |                                                  | $                                              | 97,144    
|Adjustments to reconcile net earnings to cash provided by operating activities: |                                                  |                                                |           
|                                                                                | Depreciation and amortization                    |                                                |           
|                                                                                | Stock based compensation for employees           |                                                |           
|                                                                                | Deferred income taxes                            |                                                |           
|                                                                                | Tax benefit from exercise of stock options       |                                                |           
|                                                                                | Minority interests                               |                                                |           
|                                                                                | Gain on sale of former headquarters building     |                                                |           
|                                                                                | Loss on refinancing of building                  |                                                |           
|                                                                                | Other                                            |                                                |           
|                                                                                | Changes in operating assets and liabilities:     |                                                |           
|                                                                                |                                                  | Accounts receivable                            |           
|                                                                                |                                                  | Prepaid expenses                               |           
|                                                                                |                                                  | Other assets                                   |           
|                                                                                |                                                  | Accrued compensation and related benefits      |           
|                                                                                |                                                  | Accounts payable and other accrued liabilities |           
|                                                                                |                                                  | Pensions and other postretirement benefits     |           
|                                                                                |                                                  | Other liabilities                              |           
|                                                                                |                                                  |                                                |           
|                                                                                | Cash provided by operating activities            |                                                |           
|Investing Activities                                                            |                                                  |                                                |           
|Additions to property and equipment                                             |                                                  |                                                | (54,159   
|Business combinations, net of cash acquired                                     |                                                  |                                                | (11,934   
|Proceeds from sale of former headquarters building                              |                                                  |                                                |          
|Proceeds from sale of minority interest in Sabre Pacific                        |                                                  |                                                |          
|Proceeds from exercise of Travelocity.com stock options                         |                                                  |                                                |          
|Proceeds from sale of data center facility                                      |                                                  |                                                |          
|Purchase of data center facility from lessor                                    |                                                  |                                                |          
|Purchases of marketable securities                                              |                                                  |                                                | (6,528,942
|Sales of marketable securities                                                  |                                                  |                                                | 6,434,837 
|Proceeds from sales of warrants                                                 |                                                  |                                                | 5,054     
|Other investing activities, net                                                 |                                                  |                                                | 8,084     
|                                                                                |                                                  |                                                |           
|                                                                                | Cash used for investing activities               |                                                |           
|Financing Activities                                                            |                                                  |                                                |           
|Proceeds from issuance of common stock                                          |                                                  |                                                | 5,859     
|Dividends paid                                                                  |                                                  |                                                | (20,078   
|Purchases of treasury stock                                                     |                                                  |                                                |          
|Payment to refinance building                                                   |                                                  |                                                | (27,947   
|Other financing activities, net                                                 |                                                  |                                                | (2,661    
|                                                                                |                                                  |                                                |           
|                                                                                | Cash provided by (used for) financing activities |                                                |           
|                                                                                |                                                  |                                                |           
|Increase in cash                                                                |                                                  |                                                | 5,308     
|Cash at beginning of period                                                     |                                                  |                                                | 21,176    
|                                                                                |                                                  |                                                |           
|Cash at end of period                                                           |                                                  | $                                              | 26,484    
|                                                                                |                                                  |                                                |           

See Notes to Consolidated Financial Statements

6

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SABRE HOLDINGS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.     General Information



2.     Summary of Significant Accounting Policies



7

---



8

---



9

---



Three Months Ended
September 30,

Nine Months Ended
September 30,2003

2002

2003

2002Denominator for basic earnings per common
    shareweighted-average shares

142,672

143,096

142,451

139,762Dilutive effect of stock awards and options

2,485

1,794

1,156

2,550Denominator for diluted earnings per common
    shareadjusted weighted-average shares

145,157

144,890

143,607

142,312




10

---



Three Months Ended
September 30,

Nine Months Ended
September 30,2003

2002

2003

2002Net earnings as reported

$
25,449

$
57,921

$
97,144

$
213,273Add stock compensation expense determined
    under intrinsic value method, net of
    income taxes


2,862


2,683


8,582


17,228Less total stock-based employee compensation
    expense determined under fair value based
    method for all awards, net of income
    taxes


10,324


6,445


32,822


39,530Pro forma net earnings

$
17,987

$
54,159

$
72,904

$
190,971Net earnings per common share, as reported:Basic

$
.18

$
.40

$
.68

$
1.53Diluted

$
.18

$
.40

$
.68

$
1.50Net earnings per common share, pro forma:Basic

$
.13

$
.38

$
.51

$
1.37Diluted

$
.12

$
.37

$
.51

$
1.34




11

---



12

---



Year Ending December 31,2003

$
4,8032004


9,6072005


9,6072006


9,6072007


9,6072008 and thereafter


212,138Total before interest


255,369Amounts representing interest


(87,363
)Total obligations under capital lease

$
168,006


3.     Significant Events



Minority interest assumed

$
252,597Deferred income tax asset, net


21,665Supplier and distributor agreements (weighted average life of 3 years)


20,208Proprietary software (weighted average life of 3 years)


2,256Customer database (weighted average life of 7 years)


3,739Trademark, tradename and domain name (indefinite life)


13,698Goodwill


160,146Total purchase price

$
474,309




13

---



Working capital acquired

$
1,770Property and equipment and other non-current assets


824Software


1,352Non-current liabilities


(75
)Supplier agreements (weighted average life of 1.5 years)


900Trademark, tradename and domain name (indefinite life)


600Goodwill


38,232Total purchase price

$
43,603




14

---

Pro Forma Statement of Operations Data



Nine Months Ended
September 30, 2002Revenues

$
1,603,480Net earnings

$
219,752Earnings per common shareBasic

$
1.57Diluted

$
1.54




Estimated cost of 2002 workforce reduction

$
15,791Amounts paid in 2002


(4,377
)Remaining liability at December 31, 2002


11,414Amounts paid in nine months ended September 30, 2003


(10,226
)Revision of 2002 workforce reduction


(925
)Remaining liability at September 30, 2003

$
263




15

---



4.     Income Taxes



Three Months Ended
September 30,

Nine Months Ended
September 30,2003

2002

2003

2002Income tax provision at statutory federal income
    tax rate

$
13,889

$
31,699

$
53,016

$
118,714State income taxes, net of federal benefit


291


1,412


2,692


9,401Other, net


53


(461
)

(1,379
)

(2,204
)Total provision for income taxes

$
14,233

$
32,650

$
54,329

$
125,911


5.     Derivatives



16

---



17

---



Assets atSeptember 30, 2003

December 31, 2002Warrants

$
2,849

$
2,213Foreign currency forwards


6,067


7,019Interest rate swaps


16,824


21,397$
25,740

$
30,629




6.     Segment Reporting



18

---



19

---



Three Months Ended
September 30,

Nine Months Ended
September 30,2003

2002

2003

2002Revenues from external customers, excluding
    special items:Sabre Travel Network

$
371,451

$
385,464

$
1,121,374

$
1,218,295Travelocity


76,058


64,963


210,835


183,103GetThere


13,616


13,704


37,463


38,251Sabre Airline Solutions


55,822


50,417


165,688


154,512Total

$
516,947

$
514,548

$
1,535,360

$
1,594,161Intersegment revenues:Sabre Travel Network

$
6,748

$
7,430

$
19,328

$
20,072Travelocity


24,047


18,883


69,202


52,922GetThere


401


264


1,177


663Sabre Airline Solutions











Total

$
31,196

$
26,577

$
89,707

$
73,657Equity in net income of equity method investees:Sabre Travel Network

$
4,446

$
3,658

$
9,324

$
12,365Travelocity


(2,436
)

(832
)

(11,163
)

(3,046
)Total

$
2,010

$
2,826

$
(1,839
)
$
9,319Segment revenues, excluding special items:Sabre Travel Network

$
382,645

$
396,552

$
1,150,026

$
1,250,732Travelocity


97,669


83,014


268,874


232,979GetThere


14,017


13,968


38,640


38,914Sabre Airline Solutions


55,822


50,417


165,688


154,512Elimination of intersegment revenues


(31,196
)

(26,577
)

(89,707
)

(73,657
)Total

$
518,957

$
517,374

$
1,533,521

$
1,603,480Revenue special items:Sabre Travel Networksettlement revenue from
    canceled subscriber contract








36,458


Travelocityrecognition of deferred warrant
    revenue upon termination of Hotels.com
    agreement


7,836





7,836


Total

$
7,836

$


$
44,294

$
Consolidated revenues:Sabre Travel Network

$
382,645

$
396,552

$
1,186,484

$
1,250,732Travelocity


105,505


83,014


276,710


232,979GetThere


14,017


13,968


38,640


38,914Sabre Airline Solutions


55,822


50,417


165,688


154,512Elimination of intersegment revenues


(31,196
)

(26,577
)

(89,707
)

(73,657
)Total

$
526,793

$
517,374

$
1,577,815

$
1,603,480


20

---



Three Months Ended
September 30,

Nine Months Ended
September 30,2003

2002

2003

2002Segment operating income (loss) excluding special
    items:Sabre Travel Network

$
66,012

$
109,454

$
217,738

$
385,514Travelocity


(5,951
)

(4,781
)

(17,361
)

(2,472
)GetThere


(3,419
)

(4,806
)

(14,256
)

(21,085
)Sabre Airline Solutions


1,324


3,493


8,638


18,375Net corporate allocations


1,249


343


1,383


(2,516
)Total

$
59,215

$
103,703

$
196,142

$
377,816Impact of special items on operating income(increase)/decrease:Sabre Travel Network:Settlement revenue from canceled subscriber contract

$


$


$
(36,458
)
$
Other intangibles amortization


3,106


3,339


9,346


12,844Stock compensation


16


110


47


398Restructuring expenses








(288
)

Total Sabre Travel Network


3,122


3,449


(27,353
)

13,242Travelocity:Other intangibles amortization/impairment


11,186


2,860


16,336


6,211Stock compensation


2,386


2,450


7,089


21,317Recognition of deferred warrant revenue upon
    termination of Hotels.com agreement


(7,836
)




(7,836
)

Restructuring expenses








(37
)

Tender offer expenses











7,111Total Travelocity


5,736


5,310


15,552


34,639GetThere:Other intangibles amortization


6,107


6,607


18,319


19,819Stock compensation


834


863


2,523


1,852Total GetThere


6,941


7,470


20,842


21,671Sabre Airline Solutions:Restructuring expenses








(231
)

Corporate:Other


(450
)




(450
)

Restructuring expenses








(370
)

(3,508
)Total Corporate


(450
)




(820
)

(3,508
)Total operating income special items

$
15,349

$
16,229

$
7,990

$
66,044Consolidated operating income (loss):Sabre Travel Network

$
62,890

$
106,005

$
245,091

$
372,272Travelocity


(11,687
)

(10,091
)

(32,913
)

(37,111
)GetThere


(10,360
)

(12,276
)

(35,098
)

(42,756
)Sabre Airline Solutions


1,324


3,493


8,869


18,375Corporate Allocations


1,699


343


2,203


992Total

$
43,866

$
87,474

$
188,152

$
311,772


21

---

7.     Supplemental Guarantor/Non-Guarantor Financial Information



22

---



UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 2003
(in thousands)

|                                               |                                                | Sabre
Holdings                                 |           | Sabre Inc. |           | Non-Guarantor
Subsidiaries |            | Eliminating
Entries |           | Sabre
Consolidated
|---------------------------------------------- | ---------------------------------------------- | ---------------------------------------------- | --------- | ---------- | --------- | -------------------------- | ---------- | ------------------- | --------- | ------------------
|Assets                                         |                                                |                                                |           |            |           |                            |            |                     |           |                   
|Current assets                                 |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               | Cash and marketable securities                 |                                                | $         |           |           | $                          | 992,012    |                     | $         | 20,335            
|                                               | Accounts receivabletrade, net                 |                                                |           |           |           |                            | 280,429    |                     |           | 92,194            
|                                               | Intercompany accounts
    receivable (payable) |                                                |           | 1,565,969  |           |                            | (1,769,158 | )                   |           | 203,189           
|                                               | Prepaid expenses and other
    current assets  |                                                |           |           |           |                            | 45,417     |                     |           | 60,700            
|                                               | Deferred income taxes                          |                                                |           |           |           |                            | 15,706     |                     |           | 1,375             
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               |                                                | Total current assets                           |           |            | 1,565,969 |                            |            | (435,594            | )         |                   
|Property and equipment, net                    |                                                |                                                |          |            |           | 349,033                    |            |                     | 48,060    |                   
|Investments in joint ventures                  |                                                |                                                |          |            |           | 3,722                      |            |                     | 174,251   |                   
|Goodwill and intangible assets, net            |                                                |                                                |          |            |           | 10,760                     |            |                     | 801,466   |                   
|Investments in subsidiaries                    |                                                |                                                | 588,508   |            |           | 1,262,699                  |            |                     |          |                   
|Other assets, net                              |                                                |                                                | 23,245    |            |           | 83,124                     |            |                     | 31,567    |                   
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               |                                                | Total assets                                   |           | $          | 2,177,722 |                            | $          | 1,273,744           |           | $                 
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   
|Liabilities and stockholders' equity           |                                                |                                                |           |            |           |                            |            |                     |           |                   
|Current liabilities                            |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               | Accounts payable                               |                                                | $         | 3          |           | $                          | 128,301    |                     | $         | 50,944            
|                                               | Accrued compensation and
    related benefits  |                                                |           |           |           |                            | 44,662     |                     |           | 12,019            
|                                               | Other accrued liabilities                      |                                                |           | 2,984      |           |                            | 175,961    |                     |           | 108,303           
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               |                                                | Total current liabilities                      |           |            | 2,987     |                            |            | 348,924             |           |                   
|Deferred income taxes                          |                                                |                                                |          |            |           | 41,399                     |            |                     | (31,355   | )                 
|Pensions and other
    postretirement benefits |                                                |                                                |          |            |           | 116,805                    |            |                     | 1,007     |                   
|Other liabilities                              |                                                |                                                | 1,064     |            |           | 15,193                     |            |                     | 17,918    |                   
|Minority interests                             |                                                |                                                |          |            |           |                           |            |                     | 11,602    |                   
|Notes payable                                  |                                                |                                                | 433,930   |            |           |                           |            |                     |          |                   
|Obligation under capital lease                 |                                                |                                                |          |            |           | 162,915                    |            |                     |          |                   
|Stockholders' equity                           |                                                |                                                | 1,739,741 |            |           | 588,508                    |            |                     | 1,262,699 |                   
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               |                                                | Total liabilities and
    stockholders' equity |           | $          | 2,177,722 |                            | $          | 1,273,744           |           | $                 
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   

23

---

UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2002
(in thousands)

|                                               |                                                | Sabre
Holdings                                 |           | Sabre Inc. |           | Non-Guarantor
Subsidiaries |            | Eliminating
Entries |           | Sabre
Consolidated
|---------------------------------------------- | ---------------------------------------------- | ---------------------------------------------- | --------- | ---------- | --------- | -------------------------- | ---------- | ------------------- | --------- | ------------------
|Assets                                         |                                                |                                                |           |            |           |                            |            |                     |           |                   
|Current assets                                 |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               | Cash and marketable securities                 |                                                | $         |           |           | $                          | 898,958    |                     | $         | 12,802            
|                                               | Accounts receivabletrade, net                 |                                                |           |           |           |                            | 223,216    |                     |           | 75,282            
|                                               | Intercompany accounts
    receivable (payable) |                                                |           | 1,532,426  |           |                            | (2,094,913 | )                   |           | 562,487           
|                                               | Prepaid expenses and other
    current assets  |                                                |           |           |           |                            | 38,994     |                     |           | 46,663            
|                                               | Deferred income taxes                          |                                                |           |           |           |                            | 15,678     |                     |           | 50                
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               |                                                | Total current assets                           |           |            | 1,532,426 |                            |            | (918,067            | )         |                   
|Property and equipment, net                    |                                                |                                                |          |            |           | 187,783                    |            |                     | 52,289    |                   
|Investments in joint ventures                  |                                                |                                                |          |            |           | 4,169                      |            |                     | 184,833   |                   
|Goodwill and intangible assets, net            |                                                |                                                |          |            |           | 10,605                     |            |                     | 845,078   |                   
|Investments in subsidiaries                    |                                                |                                                | 529,892   |            |           | 1,675,167                  |            |                     |          |                   
|Other assets, net                              |                                                |                                                | 24,058    |            |           | 96,783                     |            |                     | 39,290    |                   
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               |                                                | Total assets                                   |           | $          | 2,086,376 |                            | $          | 1,056,440           |           | $                 
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   
|Liabilities and stockholders' equity           |                                                |                                                |           |            |           |                            |            |                     |           |                   
|Current liabilities                            |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               | Accounts payable                               |                                                | $         | 88         |           | $                          | 163,071    |                     | $         | 18,775            
|                                               | Accrued compensation and
    related benefits  |                                                |           |           |           |                            | 44,752     |                     |           | 10,018            
|                                               | Other accrued liabilities                      |                                                |           | 8,381      |           |                            | 169,783    |                     |           | 85,046            
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               |                                                | Total current liabilities                      |           |            | 8,469     |                            |            | 377,606             |           |                   
|Deferred income taxes                          |                                                |                                                |          |            |           | 24,863                     |            |                     | (11,108   | )                 
|Pensions and other
    postretirement benefits |                                                |                                                |          |            |           | 115,400                    |            |                     | 905       |                   
|Other liabilities                              |                                                |                                                | 564       |            |           | 8,679                      |            |                     | 29,671    |                   
|Minority interests                             |                                                |                                                |          |            |           |                           |            |                     | 10,300    |                   
|Notes payable                                  |                                                |                                                | 435,765   |            |           |                           |            |                     |          |                   
|Stockholders' equity                           |                                                |                                                | 1,641,578 |            |           | 529,892                    |            |                     | 1,675,167 |                   
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   
|                                               |                                                | Total liabilities and
    stockholders' equity |           | $          | 2,086,376 |                            | $          | 1,056,440           |           | $                 
|                                               |                                                |                                                |           |            |           |                            |            |                     |           |                   

24

---

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(in thousands)

|                                                    |                                 | Sabre
Holdings               |         | Sabre Inc. |         | Non-Guarantor
Subsidiaries |         | Eliminating
Entries |         | Sabre
Consolidated |      
|--------------------------------------------------- | ------------------------------- | ---------------------------- | ------- | ---------- | ------- | -------------------------- | ------- | ------------------- | ------- | ------------------ | -----
|Revenues                                            |                                 | $                            |        |            | $       | 1,147,049                  |         | $                   | 807,943 |                    | $    
|Operating expenses                                  |                                 |                              | 2,218   |            |         | 1,057,672                  |         |                     | 706,950 |                    |      
|                                                    |                                 |                              |         |            |         |                            |         |                     |         |                    |      
|Operating income (loss)                             |                                 |                              | (2,218  | )          |         | 89,377                     |         |                     | 100,993 |                    |      
|Other income (expense)                              |                                 |                              |         |            |         |                            |         |                     |         |                    |      
|                                                    | Interest income                 |                              |         | 60,302     |         |                            | 8,607   |                     |         | 12,948             |      
|                                                    | Interest expense                |                              |         | (12,855    | )       |                            | (71,772 | )                   |         | (2,257             | )    
|                                                    | Income (loss) from subsidiaries |                              |         | 67,350     |         |                            | 75,251  |                     |         |                   |      
|                                                    | Other, net                      |                              |         |           |         |                            | (27,061 | )                   |         | (3,289             | )    
|                                                    |                                 |                              |         |            |         |                            |         |                     |         |                    |      
|                                                    |                                 | Total other income (expense) |         |            | 114,797 |                            |         | (14,975             | )       |                    | 7,402
|Minority interests                                  |                                 |                              |        |            |         |                           |         |                     | (1,302  | )                  |      
|                                                    |                                 |                              |         |            |         |                            |         |                     |         |                    |      
|Income (loss) before provision for
    income taxes |                                 |                              | 112,579 |            |         | 74,402                     |         |                     | 107,093 |                    |      
|Provision for income taxes                          |                                 |                              | 15,435  |            |         | 7,052                      |         |                     | 31,842  |                    |      
|                                                    |                                 |                              |         |            |         |                            |         |                     |         |                    |      
|Net income (loss)                                   |                                 | $                            | 97,144  |            | $       | 67,350                     |         | $                   | 75,251  |                    | $    
|                                                    |                                 |                              |         |            |         |                            |         |                     |         |                    |      

25

---

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(in thousands)

|                                                    |                                 | Sabre
Holdings               |         | Sabre Inc. |         | Non-Guarantor
Subsidiaries |         | Eliminating
Entries |         | Sabre
Consolidated |       
|--------------------------------------------------- | ------------------------------- | ---------------------------- | ------- | ---------- | ------- | -------------------------- | ------- | ------------------- | ------- | ------------------ | ------
|Revenues                                            |                                 | $                            |        |            | $       | 1,251,217                  |         | $                   | 676,354 |                    | $     
|Operating expenses                                  |                                 |                              | 1,096   |            |         | 996,112                    |         |                     | 618,591 |                    |       
|                                                    |                                 |                              |         |            |         |                            |         |                     |         |                    |       
|Operating income (loss)                             |                                 |                              | (1,096  | )          |         | 255,105                    |         |                     | 57,763  |                    |       
|Other income (expense)                              |                                 |                              |         |            |         |                            |         |                     |         |                    |       
|                                                    | Interest income                 |                              |         | 70,926     |         |                            | 17,392  |                     |         | 17,249             |       
|                                                    | Interest expense                |                              |         | (14,348    | )       |                            | (84,431 | )                   |         | (1,959             | )     
|                                                    | Income (loss) from subsidiaries |                              |         | 176,724    |         |                            | 51,632  |                     |         |                   |       
|                                                    | Other, net                      |                              |         |           |         |                            | 18,405  |                     |         | 4,568              |       
|                                                    |                                 |                              |         |            |         |                            |         |                     |         |                    |       
|                                                    |                                 | Total other income (expense) |         |            | 233,302 |                            |         | 2,998               |         |                    | 19,858
|Minority interests                                  |                                 |                              |        |            |         |                           |         |                     | (390    | )                  |       
|                                                    |                                 |                              |         |            |         |                            |         |                     |         |                    |       
|Income (loss) before provision for
    income taxes |                                 |                              | 232,206 |            |         | 258,103                    |         |                     | 77,231  |                    |       
|Provision for income taxes                          |                                 |                              | 18,933  |            |         | 81,379                     |         |                     | 25,599  |                    |       
|                                                    |                                 |                              |         |            |         |                            |         |                     |         |                    |       
|Net income (loss)                                   |                                 | $                            | 213,273 |            | $       | 176,724                    |         | $                   | 51,632  |                    | $     
|                                                    |                                 |                              |         |            |         |                            |         |                     |         |                    |       

26

---

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003
(in thousands)

|                                                    |                                 | Sabre
Holdings               |        | Sabre Inc. |        | Non-Guarantor
Subsidiaries |         | Eliminating
Entries |         | Sabre
Consolidated |      
|--------------------------------------------------- | ------------------------------- | ---------------------------- | ------ | ---------- | ------ | -------------------------- | ------- | ------------------- | ------- | ------------------ | -----
|Revenues                                            |                                 | $                            |       |            | $      | 360,934                    |         | $                   | 291,695 |                    | $    
|Operating expenses                                  |                                 |                              | 468    |            |        | 357,311                    |         |                     | 250,984 |                    |      
|                                                    |                                 |                              |        |            |        |                            |         |                     |         |                    |      
|Operating income (loss)                             |                                 |                              | (468   | )          |        | 3,623                      |         |                     | 40,711  |                    |      
|Other income (expense)                              |                                 |                              |        |            |        |                            |         |                     |         |                    |      
|                                                    | Interest income                 |                              |        | 22,998     |        |                            | 3,014   |                     |         | 3,845              |      
|                                                    | Interest expense                |                              |        | (4,201     | )      |                            | (27,627 | )                   |         | (663               | )    
|                                                    | Income (loss) from subsidiaries |                              |        | 13,375     |        |                            | 29,634  |                     |         |                   |      
|                                                    | Other, net                      |                              |        |           |        |                            | 72      |                     |         | (911               | )    
|                                                    |                                 |                              |        |            |        |                            |         |                     |         |                    |      
|                                                    |                                 | Total other income (expense) |        |            | 32,172 |                            |         | 5,093               |         |                    | 2,271
|Minority interests                                  |                                 |                              |       |            |        |                           |         |                     | (711    | )                  |      
|                                                    |                                 |                              |        |            |        |                            |         |                     |         |                    |      
|Income (loss) before provision for
    income taxes |                                 |                              | 31,704 |            |        | 8,716                      |         |                     | 42,271  |                    |      
|Provision for income taxes                          |                                 |                              | 6,255  |            |        | (4,659                     | )       |                     | 12,637  |                    |      
|                                                    |                                 |                              |        |            |        |                            |         |                     |         |                    |      
|Net income (loss)                                   |                                 | $                            | 25,449 |            | $      | 13,375                     |         | $                   | 29,634  |                    | $    
|                                                    |                                 |                              |        |            |        |                            |         |                     |         |                    |      

27

---

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002
(in thousands)

|                                                    |                          | Sabre
Holdings               |        | Sabre Inc. |        | Non-Guarantor
Subsidiaries |         | Eliminating
Entries |         | Sabre
Consolidated |      
|--------------------------------------------------- | ------------------------ | ---------------------------- | ------ | ---------- | ------ | -------------------------- | ------- | ------------------- | ------- | ------------------ | -----
|Revenues                                            |                          | $                            |       |            | $      | 393,788                    |         | $                   | 237,118 |                    | $    
|Operating expenses                                  |                          |                              | (102   | )          |        | 329,627                    |         |                     | 213,907 |                    |      
|                                                    |                          |                              |        |            |        |                            |         |                     |         |                    |      
|Operating income (loss)                             |                          |                              | 102    |            |        | 64,161                     |         |                     | 23,211  |                    |      
|Other income (expense)                              |                          |                              |        |            |        |                            |         |                     |         |                    |      
|                                                    | Interest income          |                              |        | 47,945     |        |                            | 5,769   |                     |         | 5,586              |      
|                                                    | Interest expense         |                              |        | (4,684     | )      |                            | (52,321 | )                   |         | (769               | )    
|                                                    | Income from subsidiaries |                              |        | 29,355     |        |                            | 18,318  |                     |         |                   |      
|                                                    | Other, net               |                              |        |           |        |                            | 1,023   |                     |         | 897                |      
|                                                    |                          |                              |        |            |        |                            |         |                     |         |                    |      
|                                                    |                          | Total other income (expense) |        |            | 72,616 |                            |         | (27,211             | )       |                    | 5,714
|Minority interests                                  |                          |                              |       |            |        |                           |         |                     | (349    | )                  |      
|                                                    |                          |                              |        |            |        |                            |         |                     |         |                    |      
|Income (loss) before provision for
    income taxes |                          |                              | 72,718 |            |        | 36,950                     |         |                     | 28,576  |                    |      
|Provision for income taxes                          |                          |                              | 14,797 |            |        | 7,595                      |         |                     | 10,258  |                    |      
|                                                    |                          |                              |        |            |        |                            |         |                     |         |                    |      
|Net income (loss)                                   |                          | $                            | 57,921 |            | $      | 29,355                     |         | $                   | 18,318  |                    | $    
|                                                    |                          |                              |        |            |        |                            |         |                     |         |                    |      

28

---

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(in thousands)

|                     |                                                                                         | Sabre
Holdings                                       |   | Sabre Inc. |         | Non-Guarantor
Subsidiaries |            | Eliminating
Entries |   | Sabre
Consolidated |        
|-------------------- | --------------------------------------------------------------------------------------- | ---------------------------------------------------- | - | ---------- | ------- | -------------------------- | ---------- | ------------------- | - | ------------------ | -------
|Operating Activities |                                                                                         |                                                      |   |            |         |                            |            |                     |   |                    |        
|                     | Net earnings                                                                            |                                                      | $ | 97,144     |         | $                          | 67,350     |                     | $ | 75,251             |        
|                     | Adjustments to reconcile net
    earnings to cash provided by
    operating activities: |                                                      |   |            |         |                            |            |                     |   |                    |        
|                     |                                                                                         | Depreciation and amortization                        |   |            |        |                            |            | 41,189              |   |                    | 63,995 
|                     |                                                                                         | Stock compensation                                   |   |            |        |                            |            | 2,608               |   |                    | 11,284 
|                     |                                                                                         | Deferred income taxes                                |   |            |        |                            |            | (4,688              | ) |                    |       
|                     |                                                                                         | Tax benefit from exercise of
    stock options       |   |            | 586     |                            |            |                    |   |                    |       
|                     |                                                                                         | Loss on refinancing building                         |   |            |        |                            |            | 27,947              |   |                    |       
|                     |                                                                                         | Minority interests                                   |   |            |        |                            |            |                    |   |                    | 1,302  
|                     |                                                                                         | (Income) loss from subsidiaries                      |   |            | (67,350 | )                          |            | (75,251             | ) |                    |       
|                     |                                                                                         | Other                                                |   |            | (1,256  | )                          |            | 1,700               |   |                    | 2,901  
|                     |                                                                                         | Changes in operating assets and
    liabilities      |   |            | (25,009 | )                          |            | (368,881            | ) |                    | 346,373
|                     |                                                                                         |                                                      |   |            |         |                            |            |                     |   |                    |        
|                     | Cash provided by (used for)
    operating activities                                    |                                                      |   | 4,115      |         |                            | (308,026   | )                   |   | 501,106            |        
|Investing Activities |                                                                                         |                                                      |   |            |         |                            |            |                     |   |                    |        
|                     | Additions to property and
    equipment                                                 |                                                      |   |           |         |                            | (39,056    | )                   |   | (15,103            | )      
|                     | Purchases of marketable securities                                                      |                                                      |   |           |         |                            | (6,529,049 | )                   |   | 107                |        
|                     | Sales of marketable securities                                                          |                                                      |   |           |         |                            | 6,436,855  |                     |   | (2,018             | )      
|                     | Investments in subsidiaries, net                                                        |                                                      |   | 9,986      |         |                            | 488,829    |                     |   |                   |        
|                     | Business combinations, net of cash
    acquired                                         |                                                      |   |           |         |                            | (11,934    | )                   |   |                   |        
|                     | Other investing activities, net                                                         |                                                      |   |           |         |                            |           |                     |   | 13,138             |        
|                     |                                                                                         |                                                      |   |            |         |                            |            |                     |   |                    |        
|                     |                                                                                         | Cash provided by (used for)
    investing activities |   |            | 9,986   |                            |            | 345,645             |   |                    | (3,876 
|Financing Activities |                                                                                         |                                                      |   |            |         |                            |            |                     |   |                    |        
|                     | Distributions to affiliates                                                             |                                                      |   |           |         |                            | (9,986     | )                   |   | (488,829           | )      
|                     | Proceeds from issuance of common
    stock                                              |                                                      |   | 5,859      |         |                            |           |                     |   |                   |        
|                     | Dividends paid                                                                          |                                                      |   | (20,078    | )       |                            |           |                     |   |                   |        
|                     | Payment to refinance building                                                           |                                                      |   |           |         |                            | (27,947    | )                   |   |                   |        
|                     | Other financing activities, net                                                         |                                                      |   | 118        |         |                            |           |                     |   | (2,779             | )      
|                     |                                                                                         |                                                      |   |            |         |                            |            |                     |   |                    |        
|                     | Cash provided by (used for)
    financing activities                                    |                                                      |   | (14,101    | )       |                            | (37,933    | )                   |   | (491,608           | )      
|                     |                                                                                         |                                                      |   |            |         |                            |            |                     |   |                    |        
|                     | Increase in cash                                                                        |                                                      |   |           |         |                            | (314       | )                   |   | 5,622              |        
|                     | Cash at beginning of period                                                             |                                                      |   |           |         |                            | 9,219      |                     |   | 11,957             |        
|                     |                                                                                         |                                                      |   |            |         |                            |            |                     |   |                    |        
|                     | Cash at end of period                                                                   |                                                      | $ |           |         | $                          | 8,905      |                     | $ | 17,579             |        
|                     |                                                                                         |                                                      |   |            |         |                            |            |                     |   |                    |        

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UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(in thousands)

|                     |                                                                                         | Sabre
Holdings                                       |   | Sabre Inc. |          | Non-Guarantor
Subsidiaries |            | Eliminating
Entries |   | Sabre
Consolidated |         
|-------------------- | --------------------------------------------------------------------------------------- | ---------------------------------------------------- | - | ---------- | -------- | -------------------------- | ---------- | ------------------- | - | ------------------ | --------
|Operating Activities |                                                                                         |                                                      |   |            |          |                            |            |                     |   |                    |         
|                     | Net earnings                                                                            |                                                      | $ | 213,273    |          | $                          | 176,724    |                     | $ | 51,632             |         
|                     | Adjustments to reconcile net
    earnings to cash provided by
    operating activities: |                                                      |   |            |          |                            |            |                     |   |                    |         
|                     |                                                                                         | Depreciation and amortization                        |   |            |         |                            |            | 29,718              |   |                    | 56,456  
|                     |                                                                                         | Stock compensation                                   |   |            |         |                            |            |                    |   |                    | 27,079  
|                     |                                                                                         | Deferred income taxes                                |   |            |         |                            |            | 64,801              |   |                    | 14,156  
|                     |                                                                                         | Tax benefit from exercise of
    stock options       |   |            | 9,686    |                            |            |                    |   |                    |        
|                     |                                                                                         | Minority interests                                   |   |            |         |                            |            |                    |   |                    | 390     
|                     |                                                                                         | (Income) loss from subsidiaries                      |   |            | (176,724 | )                          |            | (51,632             | ) |                    |        
|                     |                                                                                         | Gain on sale of former
    headquarters building     |   |            |         |                            |            | (18,308             | ) |                    |        
|                     |                                                                                         | Other                                                |   |            | 10,955   |                            |            | (15,199             | ) |                    | (12,252 
|                     |                                                                                         | Changes in operating assets and
    liabilities      |   |            | (447,351 | )                          |            | 480,185             |   |                    | (214,945
|                     |                                                                                         |                                                      |   |            |          |                            |            |                     |   |                    |         
|                     | Cash provided by (used for)
    operating activities                                    |                                                      |   | (390,161   | )        |                            | 666,289    |                     |   | (77,484            | )       
|Investing Activities |                                                                                         |                                                      |   |            |          |                            |            |                     |   |                    |         
|                     | Additions to property and
    equipment                                                 |                                                      |   |           |          |                            | (29,413    | )                   |   | (13,706            | )       
|                     | Purchases of marketable securities                                                      |                                                      |   |           |          |                            | (2,958,197 | )                   |   | (321,312           | )       
|                     | Sales of marketable securities                                                          |                                                      |   |           |          |                            | 2,668,483  |                     |   | 434,453            |         
|                     | Investments in subsidiaries, net                                                        |                                                      |   | (9,409     | )        |                            | (465,548   | )                   |   |                   |         
|                     | Business combinations, net of cash
    acquired                                         |                                                      |   |           |          |                            | 29,541     |                     |   | (512,967           | )       
|                     | Proceeds from exercise of
    Travelocity.com stock options                             |                                                      |   |           |          |                            |           |                     |   |                   |         
|                     | Proceeds from sale of former
    headquarters building                                  |                                                      |   |           |          |                            | 80,000     |                     |   |                   |         
|                     | Purchase of data center facility from
    lessor                                        |                                                      |   |           |          |                            | (92,092    | )                   |   |                   |         
|                     | Proceeds from sale of data center
    facility                                          |                                                      |   |           |          |                            | 68,464     |                     |   |                   |         
|                     | Proceeds from sale of minority
    interest in Sabre Pacific                            |                                                      |   |           |          |                            |           |                     |   | 23,466             |         
|                     | Other investing activities, net                                                         |                                                      |   |           |          |                            | 29,968     |                     |   | (8,126             | )       
|                     |                                                                                         |                                                      |   |            |          |                            |            |                     |   |                    |         
|                     |                                                                                         | Cash provided by (used for)
    investing activities |   |            | (9,409   | )                          |            | (668,794            | ) |                    | (398,192
|Financing Activities |                                                                                         |                                                      |   |            |          |                            |            |                     |   |                    |         
|                     | Contributions from affiliates                                                           |                                                      |   |           |          |                            | 9,409      |                     |   | 465,548            |         
|                     | Proceeds from issuance of common
    stock                                              |                                                      |   | 438,767    |          |                            |           |                     |   | 33,658             |         
|                     | Purchases of treasury stock                                                             |                                                      |   | (56,610    | )        |                            |           |                     |   |                   |         
|                     | Other financing activities, net                                                         |                                                      |   | 17,413     |          |                            |           |                     |   | (17,503            | )       
|                     |                                                                                         |                                                      |   |            |          |                            |            |                     |   |                    |         
|                     |                                                                                         | Cash provided by (used for)
    financing activities |   |            | 399,570  |                            |            | 9,409               |   |                    | 481,703 
|                     | Increase in cash                                                                        |                                                      |   |           |          |                            | 6,904      |                     |   | 6,027              |         
|                     | Cash at beginning of period                                                             |                                                      |   |           |          |                            | 8,642      |                     |   | 10,213             |         
|                     |                                                                                         |                                                      |   |            |          |                            |            |                     |   |                    |         
|                     | Cash at end of period                                                                   |                                                      | $ |           |          | $                          | 15,546     |                     | $ | 16,240             |         
|                     |                                                                                         |                                                      |   |            |          |                            |            |                     |   |                    |         

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8.     Subsequent Events



Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

SABRE HOLDINGS CORPORATION

RESULTS OF OPERATIONS

Summary



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32

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33

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Three Months Ended September 30, 2003 and 2002





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35

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36

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Nine Months Ended September 30, 2003 and 2002



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SABRE HOLDINGS CORPORATION
LIQUIDITY AND CAPITAL RESOURCES



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Year Ending December 31,2003

$
4,8032004


9,6072005


9,6072006


9,6072007


9,6072008 and thereafter


212,138Total before interest


255,369Amounts representing interest


(87,363
)Total obligations under capital lease

$
168,006


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SABRE HOLDINGS CORPORATION
CAUTIONARY STATEMENT



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47

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48

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49

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50

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Item 3. Quantitative and Qualitative Disclosures about Market Risk



Item 4. Controls and Procedures



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PART II: OTHER INFORMATION

Item 1. Legal Proceedings



Item 6. Exhibits and Reports on Form 8-K



|Exhibit Number |  | Description of Exhibit                                                                                                                                                                                           
|-------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1            |  | Restated Certificate of Incorporation of Sabre Holdings Corporation. (1)                                                                                                                                         
|3.2            |  | Restated Bylaws of Sabre Holdings Corporation. (2)                                                                                                                                                               
|12.1           |  | Sabre Holdings Corporation Computation of Ratio of Earnings to Fixed Charges (3)                                                                                                                                 
|31.1           |  | Written statement pursuant to 17 CFR 240.13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated November 13, 2003, signed by William J. Hannigan as Chief Executive Officer (3)  
|31.2           |  | Written statement pursuant to 17 CFR 240.13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated November 13, 2003, signed by Jeffery M. Jackson as Chief Financial Officer (3)   
|32.1           |  | Written statement pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated November 13, 2003, signed by William J. Hannigan as Chief Executive Officer (4)
|32.2           |  | Written statement pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated November 13, 2003, signed by Jeffery M. Jackson as Chief Financial Officer (4) 

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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

|                        |  | SABRE HOLDINGS CORPORATION
|----------------------- |  | --------------------------
|                        |  | By:                       
|Date: November 13, 2003 |  |                           

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