PARSIPPANY, N.J., Feb. 8, 2012 -- Wyndham Worldwide Corporation
(NYSE: WYN) today announced results for the three months
and year ended December 31, 2011.
Highlights:
- Fourth quarter adjusted diluted earnings per share (EPS)
was $0.47, compared with $0.46 in the fourth quarter of 2010, an
increase of 2%. Fourth quarter 2011 reported diluted EPS was $0.37, a decrease of 14% from the same period
in 2010, reflecting non-cash impairment charges in the Company's
Lodging business.
- Free cash flow increased to $754
million for the year ended December 31,
2011, compared with $603 million
in 2010.
- The Company's Board of Directors authorized an increase in
the quarterly cash dividend to $0.23
from $0.15 per share, beginning with the
dividend that is expected to be declared in the first quarter of 2012.
- During the quarter, the Company repurchased 6.7 million
shares of its common stock for $225 million
at an average price of $33.78. For the
full-year 2011, the Company repurchased 28.7 million shares of its
common stock for $902 million at an
average price of $31.45.
"2011 was another excellent year for our company," said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. "In an environment of
ongoing economic uncertainty, our businesses continued to execute at a
high level. As expected, we generated robust free cash flow and
effectively deployed that cash flow. We remain well positioned for
growth and that confidence is reflected in the 53% dividend increase
authorized by our Board of Directors."
FOURTH QUARTER 2011 OPERATING RESULTS
Fourth quarter revenues increased 7% from the prior year period to $1.0 billion. The increase reflects organic
growth in the Company's Lodging and Vacation Ownership businesses and
incremental contributions from acquisitions at its Vacation Exchange
and Rentals business.
For the fourth quarter of 2011, adjusted net income was $73 million, or $0.47
per diluted share, compared with $84 million,
or $0.46 per diluted share for the same
period in 2010. The decrease in adjusted net income primarily reflects
a higher adjusted tax rate and higher adjusted net interest expense.
Adjusted net income for the fourth quarter of 2011 excludes $27 million, after-tax, of non-cash impairment
charges at our Lodging business, a $7 million
tax benefit related to value added tax (VAT) adjustments, and a $3 million tax benefit related to legacy
adjustments. Full reconciliations of adjusted results to GAAP results
appear in Table 8 of this press release.
Reported net income for the fourth quarter of 2011 was $56 million, or $0.37
per diluted share, compared with net income of $78
million, or $0.43 per diluted
share, for the fourth quarter of 2010.
FULL YEAR 2011 OPERATING RESULTS
Reported revenues for full year 2011 were $4.3
billion, an increase of 10% over the prior-year period. The
revenue increase resulted from higher RevPAR in the Lodging business,
higher Vacation Ownership Interest (VOI) sales and Wyndham Asset
Affiliation Model (WAAM) commissions in the Vacation Ownership
business, and contributions from acquisitions along with higher average
net price per vacation rental in the Vacation Exchange and Rentals
business. Adjusted net income for the full year 2011 was $414 million or $2.49
per diluted share, compared with $368 million
or $2.00 per diluted share for the
prior-year period. Adjusted net income for the full year 2011 excludes
an aggregate of $3 million of net
benefits, after tax. Full reconciliations of adjusted results to GAAP
results appear in Table 8 of this press release.
Reported net income for full year 2011 was $417 million, or $2.51
per diluted share, compared with net income of $379
million, or $2.05 per diluted
share, for the prior-year period.
Free cash flow increased to $754
million in the year ended December 31,
2011 compared with $603 million
in the same period in 2010. The growth of free cash flow largely
reflects stronger operating results and a $67
million benefit generated by a refund of VAT and related
interest income. The Company defines free cash flow as net cash
provided by operating activities less capital expenditures, equity
investments and development advances and excludes a 2010 cash payment
of $145 million related to contingent
IRS tax liabilities. For the year ended December
31, 2011, cash provided by operating activities was $1.0 billion compared with $635 million for the prior-year period.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues were $188 million in the fourth
quarter of 2011, an increase of 15%, compared with the fourth quarter
of 2010, reflecting a RevPAR improvement of 5% and revenues associated
with the newly opened Wyndham Grand hotel in Orlando.
The revenue increase also included a $15 million
reclassification, primarily related to certain reservation fees, which
had no impact on EBITDA.
Excluding $44 million of
non-cash impairment charges, adjusted EBITDA was $41
million, an increase of 3% compared with the fourth quarter of
2010, largely reflecting RevPAR improvement and lower bad debt expense.
These benefits were partially offset by the timing of higher marketing
costs.
As of December 31, 2011, the
Company's hotel system consisted of 7,205 properties and over 613,100
rooms. The development pipeline included nearly 850 hotels and 111,900
rooms, of which 57% were new construction and 60% were international.
Vacation Exchange and Rentals (Wyndham Exchange &
Rentals)
Revenues were $291 million in the fourth
quarter of 2011, an increase of 3% compared with the fourth quarter of
2010. In constant currency and excluding the impact of acquisitions,
revenues were flat.
Exchange revenues were $150 million,
a decrease of 2% compared with the fourth quarter of 2010. The average
number of members was flat. In constant currency, exchange revenues and
exchange revenue per member were also flat.
Vacation rental revenues were $125
million, a 10% increase compared with the fourth quarter of
2010. Excluding the impact of foreign currency and acquisitions,
vacation rental revenues were flat as a 5% increase in the average net
price per vacation rental was offset by a 5% decline in vacation rental
transactions.
Adjusted EBITDA for the fourth quarter of 2011 decreased $4 million compared with the prior-year
period, reflecting the impact of unfavorable foreign currency and the
seasonality of recently acquired businesses.
Vacation Ownership (Wyndham Vacation Ownership)
Revenues were $527 million in the fourth
quarter of 2011, a 6% increase over the fourth quarter of 2010,
reflecting increased VOI sales and WAAM commissions.
Gross VOI sales were $409 million
in the fourth quarter of 2011, up 10% from the fourth quarter of 2010,
primarily reflecting an 8% increase in tour flow and a 4% increase in
volume per guest.
EBITDA for the fourth quarter of 2011 was $139 million, compared with EBITDA of $131 million in the fourth quarter of 2010, a
6% increase. EBITDA growth includes contributions from increased VOI
sales and WAAM commissions.
Other Items
- The Company repurchased approximately 6.7 million shares of
common stock for $225 million during the
fourth quarter of 2011 at an average price of $33.78
and an additional 1.5 million shares for $60
million at an average price of $39.02
through February 7, 2012. The Company
has $311 million remaining on its
current share repurchase authorization.
- Net interest expense in the fourth quarter of 2011 was $36 million, an increase of $2 million from the fourth quarter of 2010,
primarily reflecting higher average borrowings, partially offset by the
absence of $3 million of charges for the
early extinguishment of debt in the fourth quarter of 2010.
Balance Sheet Information as of December
31, 2011:
- Cash and cash equivalents of approximately $140 million, compared with $156 million at December
31, 2010
- Vacation ownership contract receivables, net, of $2.8 billion, compared with $3.0 billion at December
31, 2010
- Vacation ownership and other inventory of approximately $1.1 billion, compared with $1.2 billion at December
31, 2010
- Securitized vacation ownership debt of $1.9 billion, compared with $1.7 billion at December
31, 2010
- Long-term debt of $2.2 billion,
compared with $2.1 billion at December 31, 2010. The remaining borrowing
capacity on the revolving credit facility was $771
million, compared with $788 million
as of December 31, 2010
A schedule of debt is included in Table 5 of this press
release.
Outlook
For the full year 2012, the Company expects:
- Revenues of approximately $4.4
– $4.6 billion
- Adjusted EBITDA of approximately $1.030
– $1.055 billion
- EPS Guidance of $2.85 - $3.00,
up from $2.72 - $2.82
- Diluted shares of 153 million
The guidance reflects assumptions used for internal planning
purposes. Guidance may exclude non-recurring or special items, which
may have a positive or negative impact on reported results. If economic
conditions change materially from current levels, these assumptions and
our guidance may change materially.
Conference Call Information
Wyndham Worldwide Corporation will hold a conference call with
investors to discuss this news on Wednesday,
February 8, 2012 at 8:30 a.m. EST.
Listeners may access the webcast live through the Company's website at www.wyndhamworldwide.com/investors/.
An archive of this webcast will be available at the website for
approximately 90 days beginning at noon EST
on February 8, 2012. The conference call
may also be accessed by dialing (800) 369-2052 and providing the
passcode "WYNDHAM." Listeners are urged to call at least 10 minutes
prior to the scheduled start time. A telephone replay will be available
for approximately 90 days beginning at noon EST
on February 8, 2012, at (800) 947-6332.
Presentation of Financial Information
Financial information discussed in this press release includes non-GAAP
measures, which include or exclude certain items. These non-GAAP
measures differ from reported GAAP results and are intended to
illustrate what management believes are relevant period-over-period
comparisons. A complete reconciliation of reported GAAP results to the
comparable non-GAAP information appears in the financial tables section
of the press release. It is not practicable to provide a reconciliation
of forecasted adjusted EBITDA to the most directly comparable GAAP
measure because certain items cannot be reasonably estimated or
predicted at this time. Any such items could be significant to our
reported results.
About Wyndham Worldwide Corporation
As one of the world's largest hospitality companies, Wyndham Worldwide
offers individual consumers and business-to-business customers a broad
suite of hospitality products and services across various accommodation
alternatives and price ranges through its premier portfolio of
world-renowned brands. Wyndham Hotel Group encompasses 7,205 hotels
with approximately 613,100 rooms worldwide. Wyndham Exchange &
Rentals offers leisure travelers, including its 3.7 million members,
access to approximately 100,000 vacation properties located in
approximately 100 countries. Wyndham Vacation Ownership develops,
markets and sells vacation ownership interests and provides consumer
financing to owners through its network of over 160 vacation ownership
resorts serving over 813,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham
Worldwide, headquartered in Parsippany, N.J.,
employs approximately 27,800 employees globally.
For more information about Wyndham Worldwide, please visit www.wyndhamworldwide.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, conveying management's expectations as to the future based on
plans, estimates and projections at the time the Company makes the
statements. Forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. The forward-looking
statements contained in this press release include statements related
to the Company's revenues, earnings, dividends and related financial
and operating measures.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Factors that could cause actual results to differ
materially from those in the forward-looking statements include general
economic conditions, the performance of the financial and credit
markets, the economic environment for the hospitality industry, the
impact of war, terrorist activity or political strife, operating risks
associated with the hotel, vacation exchange and rentals and vacation
ownership businesses, as well as those described in the Company's
Quarterly Report on Form 10-Q, filed with the SEC on October 26, 2011. Except for the Company's
ongoing obligations to disclose material information under the federal
securities laws, it undertakes no obligation to release publicly any
revisions to any forward-looking statements, to report events or to
report the occurrence of unanticipated events.
Table
1
|
|
(1 of
2)
|
|
Wyndham
Worldwide Corporation
|
|
OPERATING
RESULTS OF REPORTABLE SEGMENTS
|
|
(In
millions)
|
|
|
|
|
In
addition to other measures, management evaluates the operating results
of each of its reportable segments based upon net revenues and
"EBITDA," which is defined as net income before depreciation and
amortization, interest expense (excluding consumer financing interest),
interest income (excluding consumer financing interest) and income
taxes, each of which is presented on the Company's Consolidated
Statements of Income. The Company believes that EBITDA is a useful
measure of performance for the Company's industry segments which, when
considered with GAAP measures, the Company believes gives a more
complete understanding of its operating performance. The Company's
presentation of EBITDA may not be comparable to similarly-titled
measures used by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
following tables summarize net revenues and EBITDA for reportable
segments, as well as reconcile EBITDA to net income for the three
months ended December 31, 2011 and 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
|
Lodging
|
$ 188
|
|
$ (3)
|
(b)
|
$ 163
|
|
$ 40
|
|
|
Vacation
Exchange and Rentals
|
291
|
|
38
|
|
282
|
|
32
|
(c)
|
|
Vacation
Ownership
|
527
|
|
139
|
|
497
|
|
131
|
|
|
Total
Reportable Segments
|
1,006
|
|
174
|
|
942
|
|
203
|
|
|
Corporate
and Other (a)
|
(6)
|
|
(26)
|
|
(5)
|
|
(20)
|
(d)
|
|
Total
Company
|
$ 1,000
|
|
$ 148
|
|
$ 937
|
|
$ 183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of EBITDA to Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
$ 148
|
|
|
|
$ 183
|
|
|
Depreciation
and amortization
|
|
|
45
|
|
|
|
44
|
|
|
Interest
expense
|
|
|
37
|
|
|
|
34
|
(e)
|
|
Interest
income
|
|
|
(1)
|
|
|
|
-
|
|
|
Income
before income taxes
|
|
|
67
|
|
|
|
105
|
|
|
Provision
for income taxes
|
|
|
11
|
|
|
|
27
|
|
|
Net
income
|
|
|
$ 56
|
|
|
|
$ 78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes
the elimination of transactions between segments.
|
|
(b)
|
Includes
non-cash impairment charges of $44 million primarily related to the
write-down of certain franchise and management agreements and
development advance notes.
|
|
(c)
|
Includes
(i) restructuring costs of $9 million and (ii) $1 million related to
costs incurred in connection with the Company's November 2010
acquisition of James Villa Holidays.
|
|
(d)
|
Includes
$3 million of a net benefit related to the resolution of and adjustment
to certain contingent liabilities and assets resulting from our
separation from Cendant.
|
|
(e)
|
Includes
$3 million of costs incurred for the early repurchase of a portion of
the Company's 3.50% convertible notes during the fourth quarter of 2010.
|
|
|
|
|
The
following tables summarize net revenues and Adjusted EBITDA for
reportable segments for the three months ended December 31, 2011 and
2010 (for a description of adjustments by segment, see Table 7):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Adjusted
|
|
|
|
Adjusted
|
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
|
Lodging
|
$ 188
|
|
$ 41
|
|
$ 163
|
|
$ 40
|
|
|
Vacation
Exchange and Rentals
|
291
|
|
38
|
|
282
|
|
42
|
|
|
Vacation
Ownership
|
527
|
|
139
|
|
497
|
|
131
|
|
|
Total
Reportable Segments
|
1,006
|
|
218
|
|
942
|
|
213
|
|
|
Corporate
and Other
|
(6)
|
|
(26)
|
|
(5)
|
|
(23)
|
|
|
Total
Company
|
$ 1,000
|
|
$ 192
|
|
$ 937
|
|
$ 190
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
1
|
|
(2 of
2)
|
|
Wyndham
Worldwide Corporation
|
|
OPERATING
RESULTS OF REPORTABLE SEGMENTS
|
|
(In
millions)
|
|
|
|
|
|
The
following tables summarize net revenues and EBITDA for reportable
segments, as well as reconcile EBITDA to net income for the twelve
months ended December 31, 2011 and 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended December 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
|
Lodging
|
$ 749
|
|
$ 157
|
(b)
|
$ 688
|
|
$ 189
|
(h)
|
|
Vacation
Exchange and Rentals
|
1,444
|
|
368
|
(c)
|
1,193
|
|
293
|
(i)
|
|
Vacation
Ownership
|
2,077
|
|
515
|
(d)
|
1,979
|
|
440
|
|
|
Total
Reportable Segments
|
4,270
|
|
1,040
|
|
3,860
|
|
922
|
|
|
Corporate
and Other (a)
|
(16)
|
|
(84)
|
(e)
|
(9)
|
|
(24)
|
(e)
|
|
Total
Company
|
$ 4,254
|
|
$ 956
|
|
$ 3,851
|
|
$ 898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of EBITDA to Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
$ 956
|
|
|
|
$ 898
|
|
|
Depreciation
and amortization
|
|
|
178
|
|
|
|
173
|
|
|
Interest
expense
|
|
|
152
|
(f)
|
|
|
167
|
(j)
|
|
Interest
income
|
|
|
(24)
|
(g)
|
|
|
(5)
|
|
|
Income
before income taxes
|
|
|
650
|
|
|
|
563
|
|
|
Provision
for income taxes
|
|
|
233
|
|
|
|
184
|
|
|
Net
income
|
|
|
$ 417
|
|
|
|
$ 379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes
the elimination of transactions between segments.
|
|
(b)
|
Includes
non-cash impairment charges of (i) $44 million primarily related to the
write-down of certain franchise and management agreements and
development advance notes and (ii) $13 million related to a write-down
of an international joint venture.
|
|
(c)
|
Includes
(i) a $31 million net benefit resulting from a refund of value added
taxes, (ii) $7 million of restructuring costs incurred in connection
with a strategic initiative commenced by the Company during 2010 and
(iii) a $4 million charge related to the write-off of foreign exchange
translation adjustments associated with the liquidation of a foreign
entity.
|
|
(d)
|
Includes
a $1 million benefit for the reversal of costs incurred as a result of
various strategic initiatives commenced by the Company during 2008.
|
|
(e)
|
Includes
$16 million and $54 million of a net benefit during 2011 and 2010,
respectively, related to the resolution of and adjustment to certain
contingent liabilities and assets resulting from our separation from
Cendant.
|
|
(f)
|
Includes
(i) $12 million of costs incurred for the early repurchase of a portion
of the Company's convertible notes during 2011 and (ii) $3 million of
interest related to value added tax accruals.
|
|
(g)
|
Includes
$16 million of interest income related to a refund of value added taxes.
|
|
(h)
|
Includes
$1 million related to costs incurred in connection with the Company's
June 2010 acquisition of the Tryp hotel brand.
|
|
(i)
|
Includes
(i) restructuring costs of $9 million and (ii) $6 million related to
costs incurred in connection with the Company's March 2010 acquisition
of Hoseasons, September 2010 acquisition of ResortQuest and November
2010 acquisition of James Villa Holidays.
|
|
(j)
|
Includes
(i) $16 million of costs incurred for the early extinguishment of the
Company's term loan facility and revolving foreign credit facility
during March 2010 and (ii) $14 million of costs incurred for the early
repurchase of a portion of the Company's 3.50% convertible notes during
2010.
|
|
|
|
|
The
following tables summarize net revenues and Adjusted EBITDA for
reportable segments for the twelve months ended December 31, 2011 and
2010 (for a description of adjustments by segment, see Table 7):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended December 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Adjusted
|
|
|
|
Adjusted
|
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
|
Lodging
|
$ 749
|
|
$ 214
|
|
$ 688
|
|
$ 190
|
|
|
Vacation
Exchange and Rentals
|
1,444
|
|
348
|
|
1,193
|
|
308
|
|
|
Vacation
Ownership
|
2,077
|
|
514
|
|
1,979
|
|
440
|
|
|
Total
Reportable Segments
|
4,270
|
|
1,076
|
|
3,860
|
|
938
|
|
|
Corporate
and Other
|
(16)
|
|
(100)
|
|
(9)
|
|
(78)
|
|
|
Total
Company
|
$ 4,254
|
|
$ 976
|
|
$ 3,851
|
|
$ 860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2
|
|
Wyndham
Worldwide Corporation
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
Service
and membership fees
|
$ 434
|
|
$ 409
|
|
$ 2,012
|
|
$ 1,706
|
|
|
|
Vacation
ownership interest sales
|
295
|
|
276
|
|
1,150
|
|
1,072
|
|
|
|
Franchise
fees
|
127
|
|
107
|
|
522
|
|
461
|
|
|
|
Consumer
financing
|
105
|
|
107
|
|
415
|
|
425
|
|
|
|
Other
|
39
|
|
38
|
|
155
|
|
187
|
|
|
Net
revenues
|
1,000
|
|
937
|
|
4,254
|
|
3,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Operating
|
422
|
|
409
|
(a)
|
1,781
|
(b)
|
1,587
|
(a) (c)
|
|
|
Cost
of vacation ownership interests
|
37
|
|
47
|
|
152
|
|
184
|
|
|
|
Consumer
financing interest
|
25
|
|
25
|
|
92
|
|
105
|
|
|
|
Marketing
and reservation
|
156
|
|
121
|
|
628
|
|
531
|
|
|
|
General
and administrative (d)
|
170
|
|
145
|
|
593
|
(e)
|
540
|
|
|
|
Asset
impairments
|
44
|
(f)
|
-
|
|
57
|
(f)
|
4
|
(g)
|
|
|
Restructuring
|
-
|
|
9
|
(h)
|
6
|
(i)
|
9
|
(h)
|
|
|
Depreciation
and amortization
|
45
|
|
44
|
|
178
|
|
173
|
|
|
Total
expenses
|
899
|
|
800
|
|
3,487
|
|
3,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
101
|
|
137
|
|
767
|
|
718
|
|
|
Other
income, net
|
(2)
|
|
(2)
|
|
(11)
|
(j)
|
(7)
|
|
|
Interest
expense
|
37
|
|
34
|
(k)
|
152
|
(l)
|
167
|
(k)
|
|
Interest
income
|
(1)
|
|
-
|
|
(24)
|
(m)
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
67
|
|
105
|
|
650
|
|
563
|
|
|
Provision
for income taxes
|
11
|
|
27
|
|
233
|
(n)
|
184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 56
|
|
$ 78
|
|
$ 417
|
|
$ 379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.37
|
|
$ 0.45
|
|
$ 2.57
|
|
$ 2.13
|
|
|
|
Diluted
|
0.37
|
|
0.43
|
|
2.51
|
|
2.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
151
|
|
174
|
|
162
|
|
178
|
|
|
|
Diluted
|
154
|
|
182
|
|
166
|
|
185
|
|
|
__________
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes
costs of $1 million incurred in connection with the Company's November
2010 acquisition of James Villa Holidays.
|
|
|
(b)
|
Includes
a $4 million charge related to the write-off of foreign exchange
translation adjustments associated with the liquidation of a foreign
entity.
|
|
|
(c)
|
Includes
costs of $6 million incurred in connection with the Company's March
2010 acquisition of Hoseasons, June 2010 acquisition of the Tryp hotel
brand and September 2010 acquisition of ResortQuest.
|
|
|
(d)
|
Includes
$3 million of a net benefit during the three months ended December 31,
2010 and $12 million of a net expense and $54 million of a net benefit
during the twelve months ended December 31, 2011 and 2010,
respectively, related to the resolution of and adjustment to certain
contingent liabilities and assets resulting from our separation from
Cendant.
|
|
|
(e)
|
Includes
a $31 million net benefit resulting from a refund of value added taxes.
|
|
|
(f)
|
Includes
non-cash impairment charges of (i) $44 million primarily related to the
write-down of certain franchise and management agreements and
development advance notes and (ii) $13 million related to a write-down
of an international joint venture at the Company's lodging business.
|
|
|
(g)
|
Represents
a non-cash impairment charge to reduce the value of certain vacation
ownership properties and related assets held for sale that were no
longer consistent with the Company's development plans.
|
|
|
(h)
|
Represents
costs incurred as a result of a strategic initiative commenced by the
Company during 2010.
|
|
|
(i)
|
Includes
(i) $7 million of costs incurred as a result of a strategic initiative
commenced by the Company during 2010 and (ii) a $1 million benefit for
the reversal of costs incurred as a result of various strategic
initiatives commenced by the Company during 2008.
|
|
|
(j)
|
Includes
$4 million of a gain related to the redemption of a preferred stock
investment allocated to the Company in connection with our separation
from Cendant.
|
|
|
(k)
|
Includes
$3 million and $14 million, respectively for the three and twelve
months ended December 31, 2010 related to costs incurred for the early
repurchase of a portion of the Company's 3.50% convertible notes during
the third and fourth quarters of 2010. The twelve months ended December
31, 2010 also includes $16 million of costs incurred for the early
extinguishment of the Company's term loan facility and revolving
foreign credit facility during March 2010.
|
|
|
(l)
|
Includes
(i) $12 million of costs incurred for the early repurchase of a portion
of the Company's 3.50% convertible notes and (ii) $3 million of
interest related to value added tax accruals.
|
|
|
(m)
|
Includes
$16 million of interest income related to the refund of value added
taxes.
|
|
|
(n)
|
Includes
a benefit of $13 million related to the reversal of a tax valuation
allowance.
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3
|
|
(1 of
3)
|
|
Wyndham
Worldwide Corporation
|
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
Lodging
(a)
|
|
|
|
|
|
|
|
|
Number
of Rooms
|
2011
|
609,600
|
612,900
|
611,200
|
613,100
|
N/A
|
|
|
|
2010
|
593,300
|
606,800
|
605,700
|
612,700
|
N/A
|
|
|
|
2009
|
588,500
|
590,200
|
590,900
|
597,700
|
N/A
|
|
|
|
2008
|
551,100
|
551,500
|
583,400
|
592,900
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
RevPAR
|
2011
|
$ 27.71
|
$ 35.38
|
$ 39.49
|
$ 30.65
|
$ 33.34
|
|
|
|
2010
|
$ 25.81
|
$ 32.25
|
$ 37.14
|
$ 29.18
|
$ 31.14
|
|
|
|
2009
|
$ 27.69
|
$ 32.38
|
$ 34.81
|
$ 26.47
|
$ 30.34
|
|
|
|
2008
|
$ 32.21
|
$ 38.87
|
$ 41.93
|
$ 30.03
|
$ 35.74
|
|
|
|
|
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
|
|
|
Average
Number of Members (in 000s)
|
2011
|
3,766
|
3,755
|
3,744
|
3,734
|
3,750
|
|
|
|
2010
|
3,746
|
3,741
|
3,766
|
3,759
|
3,753
|
|
|
|
2009
|
3,789
|
3,795
|
3,781
|
3,765
|
3,782
|
|
|
|
2008
|
3,632
|
3,682
|
3,673
|
3,693
|
3,670
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenue Per Member
|
2011
|
$
205.64
|
$
178.46
|
$
172.38
|
$
161.68
|
$
179.59
|
|
|
|
2010
|
$
201.93
|
$
172.20
|
$
173.44
|
$
162.59
|
$
177.53
|
|
|
|
2009
|
$
194.83
|
$
174.22
|
$
173.90
|
$
163.89
|
$
176.73
|
|
|
|
2008
|
$
234.05
|
$
201.04
|
$
193.39
|
$
165.99
|
$
198.48
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Rental Transactions (in 000s) (b)
|
2011
|
398
|
328
|
370
|
250
|
1,347
|
|
|
|
2010
|
291
|
297
|
322
|
253
|
1,163
|
|
|
|
2009
|
273
|
231
|
264
|
196
|
964
|
|
|
|
2008
|
269
|
220
|
255
|
191
|
936
|
|
|
|
|
|
|
|
|
|
|
|
Average
Net Price Per Vacation Rental (b)
|
2011
|
$
377.71
|
$
549.09
|
$
701.81
|
$
497.04
|
$
530.78
|
|
|
|
2010
|
$
361.17
|
$
387.01
|
$
500.31
|
$
449.12
|
$
425.38
|
|
|
|
2009
|
$
353.15
|
$
471.74
|
$
594.34
|
$
499.66
|
$
477.38
|
|
|
|
2008
|
$
442.50
|
$
541.69
|
$
659.93
|
$
460.86
|
$
528.95
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
Gross
Vacation Ownership Interest (VOI) Sales (in 000s) (c)
|
2011
|
$
319,000
|
$
412,000
|
$
455,000
|
$
409,000
|
$
1,595,000
|
|
|
|
2010
|
$
308,000
|
$
371,000
|
$
412,000
|
$
373,000
|
$
1,464,000
|
|
|
|
2009
|
$
280,000
|
$
327,000
|
$
366,000
|
$
343,000
|
$
1,315,000
|
|
|
|
2008
|
$
458,000
|
$
532,000
|
$
566,000
|
$
432,000
|
$
1,987,000
|
|
|
|
|
|
|
|
|
|
|
|
Tours
(d)
|
2011
|
137,000
|
177,000
|
197,000
|
173,000
|
685,000
|
|
|
|
2010
|
123,000
|
163,000
|
187,000
|
160,000
|
634,000
|
|
|
|
2009
|
137,000
|
164,000
|
173,000
|
142,000
|
617,000
|
|
|
|
2008
|
255,000
|
314,000
|
334,000
|
240,000
|
1,143,000
|
|
|
|
|
|
|
|
|
|
|
|
Volume
Per Guest (VPG) (d)
|
2011
|
$ 2,192
|
$ 2,227
|
$ 2,197
|
$ 2,296
|
$ 2,229
|
|
|
|
2010
|
$ 2,334
|
$ 2,156
|
$ 2,081
|
$ 2,214
|
$ 2,183
|
|
|
|
2009
|
$ 1,866
|
$ 1,854
|
$ 1,944
|
$ 2,210
|
$ 1,964
|
|
|
|
2008
|
$ 1,668
|
$ 1,583
|
$ 1,550
|
$ 1,630
|
$ 1,602
|
|
|
|
|
|
|
|
|
|
|
Note: Full
year amounts may not add across due to rounding.
|
|
|
|
|
|
|
|
(a)
|
Includes
the impact of the acquisitions of Microtel Inns & Suites and
Hawthorn Suites (July 2008) and the Tryp hotel brand (June 2010) from
the acquisition dates forward. Therefore, the operating statistics are
not presented on a comparable basis.
|
|
(b)
|
Includes
the impact of the acquisitions of Hoseasons (March 2010), ResortQuest
(September 2010), James Villa Holidays (November 2010) and two tuck-in
acquisitions (third quarter 2011) from the acquisition dates forward.
Therefore, the operating statistics are not presented on a comparable
basis.
|
|
(c)
|
Includes
gross VOI sales under the Company's Wyndham Asset Affiliate Model
(WAAM) beginning in the first quarter of 2010 (see Table 9 for a
reconciliation of gross VOI sales to vacation ownership interest sales).
|
|
(d)
|
Includes
the impact of WAAM related tours beginning in the first quarter of 2010.
|
|
|
|
Table 3
|
|
(2 of
3)
|
|
|
|
Wyndham
Worldwide Corporation
|
|
ADDITIONAL
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
Lodging
(a)
|
|
|
|
|
|
|
|
|
Number
of Properties
|
2011
|
7,190
|
7,220
|
7,190
|
7,210
|
N/A
|
|
|
|
2010
|
7,090
|
7,160
|
7,150
|
7,210
|
N/A
|
|
|
|
2009
|
6,990
|
7,020
|
7,040
|
7,110
|
N/A
|
|
|
|
2008
|
6,550
|
6,560
|
6,970
|
7,040
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
Deferred
Revenues (in 000s) (b)
|
2011
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
|
|
|
2010
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
|
|
|
2009
|
$
67,000
|
$
37,000
|
$
36,000
|
$
47,000
|
$
187,000
|
|
|
|
2008
|
$
(82,000)
|
$
(5,000)
|
$
(2,000)
|
$
14,000
|
$
(75,000)
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for Loan Losses (in 000s) (c)
|
2011
|
$
79,000
|
$
80,000
|
$
96,000
|
$
83,000
|
$
339,000
|
|
|
|
2010
|
$
86,000
|
$
87,000
|
$
85,000
|
$
82,000
|
$
340,000
|
|
|
|
2009
|
$
107,000
|
$
122,000
|
$
117,000
|
$
103,000
|
$
449,000
|
|
|
|
2008
|
$
82,000
|
$
113,000
|
$
119,000
|
$
136,000
|
$
450,000
|
|
|
|
|
|
|
|
|
|
|
|
Sales
under WAAM (in 000s) (d)
|
2011
|
$
18,000
|
$
19,000
|
$
38,000
|
$
31,000
|
$
106,000
|
|
|
|
2010
|
$ 5,000
|
$
13,000
|
$
20,000
|
$
14,000
|
$
51,000
|
|
|
|
|
|
|
|
|
|
|
|
WAAM
Commission Revenues (in 000s)
|
2011
|
$
10,000
|
$
11,000
|
$
23,000
|
$
21,000
|
$
65,000
|
|
|
|
2010
|
$ 3,000
|
$ 8,000
|
$
12,000
|
$ 9,000
|
$
31,000
|
|
|
|
|
|
|
|
|
|
|
Note: Full
year amounts may not add across due to rounding.
|
|
|
|
|
|
|
|
(a)
|
Includes
the impact of the acquisitions of Microtel Inns & Suites and
Hawthorn Suites (July 2008) and the Tryp hotel brand (June 2010) from
the acquisition dates forward. Therefore, the operating statistics are
not presented on a comparable basis.
|
|
(b)
|
Represents
the revenue that is deferred under the percentage of completion method
of accounting.
|
|
(c)
|
Represents
provision for estimated losses on vacation ownership contract
receivables originated during the period, which is recorded as a contra
revenue to vacation ownership interest sales on the Consolidated
Statements of Income.
|
|
(d)
|
Represents
gross VOI sales under the Company's WAAM for which the Company earns
commission revenue (WAAM Commission Revenues). The commission revenue
earned on these sales is included in service fees and membership
revenues on the Consolidated Statements of Income. The Company
implemented this sales model during the first quarter of 2010 and, as
such, there is no historical data prior to 2010.
|
|
|
|
|
|
Table 3
|
|
(3 of
3)
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
|
|
|
OPERATING
STATISTICS
|
|
|
|
GLOSSARY
OF TERMS
|
|
|
|
Lodging
|
|
|
|
|
|
Number
of Rooms: Represents the number of rooms at lodging
properties at the end of the period which are either (i) under
franchise and/or management agreements, (ii) properties under
affiliation agreements for which we receive a fee for reservation
and/or other services provided or (iii) properties managed under a
joint venture.
|
|
|
|
|
|
Average
Occupancy Rate:
Represents the percentage of available rooms occupied during the period.
|
|
|
|
|
|
Average
Daily Rate (ADR):
Represents the average rate charged for renting a lodging room for one
day.
|
|
|
|
RevPAR:
Represents revenue per available room and is calculated by multiplying
average occupancy rate by ADR. Comparable RevPAR represents RevPAR of
hotels which are included in both periods.
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
Average
Number of Members:
Represents members in our vacation exchange programs who pay annual
membership dues. For additional fees, such participants are entitled to
exchange intervals for intervals at other properties affiliated with
our vacation exchange business. In addition, certain participants may
exchange intervals for other leisure-related services and products.
|
|
|
|
|
|
Exchange
Revenue Per Member:
Represents total annualized revenues generated from fees associated
with memberships, exchange transactions, member-related rentals and
other servicing for the period divided by the average number of
vacation exchange members during the period.
|
|
|
|
|
|
Vacation
Rental Transactions:
Represents the number of transactions that are generated in connection
with customers booking their vacation rental stays through us. One
rental transaction is recorded for each standard one-week rental.
|
|
|
|
|
|
Average
Net Price Per Vacation Rental:
Represents the net rental price generated from renting vacation
properties to customers and other related rental servicing fees divided
by the number of vacation rental transactions.
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
Gross
Vacation Ownership Interest Sales:
Represents sales of vacation ownership interest (VOIs), including
Wyndham Asset Affiliation Model sales, before the net effect of
percentage-of-completion accounting and loan loss provisions. See Table
9 for a reconciliation of Gross VOI sales to Vacation Ownership
Interest Sales. We believe that Gross VOI sales provides an enhanced
understanding of the performance of our vacation ownership business
because it directly measures the sales volume of this business during a
given reporting period.
|
|
|
|
|
|
Tours:
Represents the number of tours taken by guests in our efforts to sell
vacation ownership interests.
|
|
|
|
|
|
Volume
per Guest (VPG):
Represents gross VOI sales (excluding tele-sales upgrades, which are
non-tour upgrade sales) divided by the number of tours. We have
excluded non-tour upgrade sales in the calculation of VPG because
non-tour upgrade sales are generated by a different marketing channel.
See Table 9 for a detail of tele-sales upgrades for 2007-2010. We
believe that VPG provides an enhanced understanding of the performance
of our vacation ownership business because it directly measures the
efficiency of this business' tour selling efforts during a given
reporting period.
|
|
|
|
General
|
|
|
|
Constant
Currency: Represents a comparison eliminating the effects
of foreign exchange rate fluctuations between periods.
|
|
|
|
|
|
|
|
|
|
|
|
Table 4
|
|
|
|
Wyndham
Worldwide Corporation
|
|
REVENUE
DETAIL BY REPORTABLE SEGMENT
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
Lodging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties
and Franchise Fees
|
$ 58
|
$ 75
|
$ 85
|
$ 66
|
$ 284
|
|
$ 52
|
$ 69
|
$ 82
|
$ 62
|
$ 265
|
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
54
|
75
|
94
|
76
|
299
|
|
50
|
65
|
76
|
60
|
251
|
|
|
Hotel
Management Reimbursable Revenues (b)
|
19
|
19
|
21
|
20
|
79
|
|
21
|
20
|
18
|
18
|
77
|
|
|
Ancillary
Revenues (c)
|
18
|
21
|
22
|
26
|
87
|
|
21
|
24
|
27
|
23
|
95
|
|
|
Total
Lodging
|
149
|
190
|
222
|
188
|
749
|
|
144
|
178
|
203
|
163
|
688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
194
|
168
|
161
|
150
|
673
|
|
189
|
161
|
163
|
153
|
666
|
|
|
Rental
Revenues
|
150
|
180
|
260
|
125
|
715
|
|
105
|
115
|
161
|
114
|
495
|
|
|
Ancillary
Revenues (d)
|
12
|
13
|
15
|
16
|
56
|
|
6
|
5
|
6
|
15
|
32
|
|
|
Total
Vacation Exchange and Rentals
|
356
|
361
|
436
|
291
|
1,444
|
|
300
|
281
|
330
|
282
|
1,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership Interest Sales
|
222
|
313
|
320
|
295
|
1,150
|
|
217
|
271
|
308
|
276
|
1,072
|
|
|
Consumer
Financing
|
102
|
103
|
105
|
105
|
415
|
|
105
|
106
|
107
|
107
|
425
|
|
|
Property
Management Fees
|
110
|
108
|
105
|
101
|
424
|
|
100
|
100
|
104
|
101
|
405
|
|
|
WAAM
Commissions
|
10
|
11
|
23
|
21
|
65
|
|
3
|
8
|
12
|
8
|
31
|
|
|
Ancillary
Revenues (e)
|
6
|
6
|
6
|
5
|
23
|
|
19
|
20
|
2
|
5
|
46
|
|
|
Total
Vacation Ownership
|
450
|
541
|
559
|
527
|
2,077
|
|
444
|
505
|
533
|
497
|
1,979
|
|
Total
Reportable Segments
|
$ 955
|
$ 1,092
|
$ 1,217
|
$ 1,006
|
$ 4,270
|
|
$ 888
|
$ 964
|
$ 1,066
|
$ 942
|
$ 3,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
Lodging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties
and Franchise Fees
|
$ 57
|
$ 68
|
$ 72
|
$ 57
|
$ 254
|
|
$ 64
|
$ 78
|
$ 88
|
$ 66
|
$ 297
|
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
54
|
66
|
73
|
53
|
246
|
|
60
|
75
|
84
|
61
|
280
|
|
|
Hotel
Management Reimbursable Revenues (b)
|
22
|
23
|
21
|
19
|
85
|
|
27
|
26
|
25
|
21
|
100
|
|
|
Ancillary
Revenues (c)
|
21
|
17
|
17
|
20
|
75
|
|
19
|
21
|
16
|
22
|
76
|
|
|
Total
Lodging
|
154
|
174
|
183
|
149
|
660
|
|
170
|
200
|
213
|
170
|
753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
185
|
165
|
164
|
154
|
668
|
|
213
|
185
|
178
|
152
|
728
|
|
|
Rental
Revenues
|
96
|
109
|
157
|
98
|
460
|
|
119
|
119
|
169
|
88
|
495
|
|
|
Ancillary
Revenues (d)
|
6
|
6
|
6
|
6
|
24
|
|
9
|
10
|
7
|
10
|
36
|
|
|
Total
Vacation Exchange and Rentals
|
287
|
280
|
327
|
258
|
1,152
|
|
341
|
314
|
354
|
250
|
1,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership Interest Sales
|
239
|
242
|
285
|
287
|
1,053
|
|
294
|
414
|
446
|
309
|
1,463
|
|
|
Consumer
Financing
|
109
|
109
|
108
|
109
|
435
|
|
99
|
104
|
111
|
112
|
426
|
|
|
Property
Management Fees
|
91
|
94
|
96
|
95
|
376
|
|
85
|
84
|
89
|
89
|
346
|
|
|
Ancillary
Revenues (e)
|
23
|
22
|
19
|
17
|
81
|
|
26
|
19
|
15
|
(18)
|
43
|
|
|
Total
Vacation Ownership
|
462
|
467
|
508
|
508
|
1,945
|
|
504
|
621
|
661
|
492
|
2,278
|
|
Total
Reportable Segments
|
$ 903
|
$ 921
|
$ 1,018
|
$ 915
|
$ 3,757
|
|
$ 1,015
|
$ 1,135
|
$ 1,228
|
$ 912
|
$ 4,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Full
year amounts may not add across due to rounding.
|
|
|
(a)
|
Marketing
and reservation revenues represent fees we receive from franchised and
managed hotels that are to be expended for marketing purposes or the
operation of a centralized, brand-specific reservation system. These
fees are typically based on a percentage of the gross room revenues of
each hotel. Wyndham Rewards revenues represent fees we receive relating
to our loyalty program.
|
|
(b)
|
Primarily
represents payroll costs in our hotel management business that we pay
on behalf of property owners and for which we are reimbursed by the
property owners.
|
|
(c)
|
Primarily
includes additional services provided to franchisees.
|
|
(d)
|
Primarily
includes fees generated from programs with affiliated resorts and
homeowners.
|
|
(e)
|
Primarily
includes revenues associated with bonus points/credits that are
provided as purchase incentives on VOI sales and fees generated from
other non-core operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5
|
|
Wyndham
Worldwide Corporation
|
|
SCHEDULE
OF DEBT
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
2011
|
|
September
30,
2011
|
|
June
30,
2011
|
|
March
31,
2011
|
|
December
31,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securitized
vacation ownership debt (a)
|
|
|
|
|
|
|
|
|
|
|
Term
notes
|
$ 1,625
|
|
$ 1,512
|
|
$ 1,446
|
|
$ 1,666
|
|
$ 1,498
|
|
Bank
conduit facility (b)
|
237
|
|
218
|
|
242
|
|
148
|
|
152
|
|
Securitized
vacation ownership debt (c)
|
1,862
|
|
1,730
|
|
1,688
|
|
1,814
|
|
1,650
|
|
Less:
Current portion of securitized vacation ownership debt
|
196
|
|
179
|
|
190
|
|
216
|
|
223
|
|
Long-term
securitized vacation ownership debt
|
$ 1,666
|
|
$ 1,551
|
|
$ 1,498
|
|
$ 1,598
|
|
$ 1,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
|
Revolving
credit facility (due July 2016) (d)
|
$ 218
|
|
$ 169
|
|
$ 107
|
|
$ 5
|
|
$ 154
|
|
6.00%
senior unsecured notes (due December 2016) (e)
|
811
|
|
812
|
|
803
|
|
797
|
|
798
|
|
9.875%
senior unsecured notes (due May 2014) (f)
|
243
|
|
243
|
|
242
|
|
241
|
|
241
|
|
3.50%
convertible notes (due May 2012) (g)
|
36
|
|
27
|
|
32
|
|
41
|
|
266
|
|
7.375%
senior unsecured notes (due March 2020) (h)
|
247
|
|
247
|
|
247
|
|
247
|
|
247
|
|
5.75%
senior unsecured notes (due February 2018) (i)
|
247
|
|
247
|
|
247
|
|
247
|
|
247
|
|
5.625%
senior unsecured notes (due March 2021) (j)
|
245
|
|
245
|
|
245
|
|
245
|
|
-
|
|
Vacation
rentals capital leases
|
102
|
|
108
|
|
120
|
|
120
|
|
115
|
|
Other
|
4
|
|
1
|
|
1
|
|
28
|
|
26
|
|
Total
debt
|
2,153
|
|
2,099
|
|
2,044
|
|
1,971
|
|
2,094
|
|
Less:
Current portion of debt
|
46
|
|
37
|
|
43
|
|
12
|
|
11
|
|
Long-term
debt
|
$ 2,107
|
|
$ 2,062
|
|
$ 2,001
|
|
$ 1,959
|
|
$ 2,083
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The
Company's vacation ownership contract receivables are securitized
through bankruptcy-remote special purpose entities ("SPE") that are
consolidated within our financial statements. These bankruptcy-remote
SPEs are legally separate from the Company. The receivables held by the
bankruptcy-remote SPEs are not available to the Company's creditors and
legally are not the Company's assets. Additionally, the creditors of
these SPEs have no recourse to the Company for principal and interest.
|
|
(b)
|
Represents
a non-recourse vacation ownership bank conduit facility with a term
through June 2013 and borrowing capacity of $600 million. As of
December 31, 2011, this facility had remaining borrowing capacity of
$363 million.
|
|
(c)
|
This
debt is collateralized by $2,638 million, $2,502 million, $2,672
million, $2,778 million and $2,865 million of underlying vacation
ownership contract receivables and related assets as of December 31,
2011, September 30, 2011, June 30, 2011, March 31, 2011 and December
31, 2010, respectively.
|
|
(d)
|
Represents
a $1.0 billion revolving credit facility that expires on July 15, 2016.
As of December 31, 2011, the Company had $11 million of outstanding
letters of credit and a remaining borrowing capacity of $771 million.
|
|
(e)
|
Represents
senior unsecured notes issued by the Company during December 2006. The
balance as of December 31, 2011 represents $800 million aggregate
principal less $2 million of unamortized discount, plus $13 million of
unamortized gains from the settlement of a derivative.
|
|
(f)
|
Represents
senior unsecured notes issued by the Company during May 2009. The
balance as of December 31, 2011 represents $250 million aggregate
principal less $7 million of unamortized discount.
|
|
(g)
|
Represents
convertible notes issued by the Company during May 2009, which includes
debt principal, less unamortized discount, and a liability related to a
bifurcated conversion feature. During 2010, the Company repurchased a
portion of these notes. During 2011, the Company repurchased a portion
of these notes, primarily through the completion of a cash tender
offer. The following table details the components of the convertible
notes:
|
|
|
|
|
December
31, 2011
|
|
September
30, 2011
|
|
June
30, 2011
|
|
March
31, 2011
|
|
December
31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
principal
|
$ 12
|
|
$ 12
|
|
$ 12
|
|
$ 17
|
|
$ 116
|
|
|
|
Unamortized
discount
|
-
|
|
(1)
|
|
(1)
|
|
(1)
|
|
(12)
|
|
|
|
Debt
less discount
|
12
|
|
11
|
|
11
|
|
16
|
|
104
|
|
|
|
Fair
value of conversion feature (*)
|
24
|
|
16
|
|
21
|
|
25
|
|
162
|
|
|
|
Convertible
notes
|
$ 36
|
|
$ 27
|
|
$ 32
|
|
$ 41
|
|
$ 266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
The Company also has an asset with a fair value equal to the conversion
feature, which represents cash-settled call options that the Company
purchased concurrent with the issuance of the convertible notes.
|
|
|
|
|
|
|
|
|
|
(h)
|
Represents
senior unsecured notes issued by the Company during February 2010. The
balance as of December 31, 2011 represents $250 million aggregate
principal less $3 million of unamortized discount.
|
|
(i)
|
Represents
senior unsecured notes issued by the Company during September 2010. The
balance as of December 31, 2011 represents $250 million aggregate
principal less $3 million of unamortized discount.
|
|
(j)
|
Represents
senior unsecured notes issued by the Company during March 2011. The
balance as of December 31, 2011 represents $250 million aggregate
principal less $5 million of unamortized discount.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6
|
|
(1 of
2)
|
|
Wyndham
Worldwide Corporation
|
|
BRAND
SYSTEM DETAILS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
and For the Three Months Ended December 31, 2011
|
|
Brand
|
Number
of Properties
|
Number
of Rooms
|
Average
Occupancy Rate
|
Average
Daily Rate (ADR)
|
Average
Revenue Per Available Room (RevPAR)
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
|
Wyndham
Hotels and Resorts
|
100
|
26,180
|
55.2%
|
$109.87
|
$60.66
|
|
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
91
|
13,076
|
59.8%
|
$97.58
|
$58.33
|
|
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
162
|
14,836
|
55.3%
|
$78.47
|
$43.42
|
|
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
74
|
7,036
|
56.3%
|
$72.93
|
$41.09
|
|
|
|
|
|
|
|
|
|
Ramada
|
845
|
114,306
|
49.4%
|
$77.79
|
$38.41
|
|
|
|
|
|
|
|
|
|
Baymont
|
259
|
21,605
|
42.9%
|
$60.63
|
$25.99
|
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,864
|
150,436
|
42.8%
|
$59.07
|
$25.31
|
|
|
|
|
|
|
|
|
|
Super
8
|
2,249
|
142,254
|
49.2%
|
$51.24
|
$25.19
|
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
451
|
45,115
|
43.9%
|
$59.39
|
$26.08
|
|
|
|
|
|
|
|
|
|
Travelodge
|
440
|
33,081
|
42.2%
|
$61.45
|
$25.95
|
|
|
|
|
|
|
|
|
|
Microtel
Inns & Suites
|
315
|
22,441
|
49.0%
|
$58.62
|
$28.75
|
|
|
|
|
|
|
|
|
|
Knights
Inn
|
349
|
21,698
|
37.8%
|
$40.37
|
$15.25
|
|
|
|
|
|
|
|
|
|
Dream
|
5
|
990
|
75.8%
|
$242.68
|
$183.83
|
|
|
|
|
|
|
|
|
|
Night
|
1
|
72
|
94.5%
|
$261.24
|
$247.00
|
|
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,205
|
613,126
|
47.0%
|
$65.18
|
$30.65
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
162
|
20,803
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,367
|
633,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
and For the Three Months Ended December 31, 2010
|
|
|
Brand
|
Number
of Properties
|
Number
of Rooms
|
Average
Occupancy Rate
|
Average
Daily Rate (ADR)
|
Average
Revenue Per Available Room (RevPAR)
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
|
Wyndham
Hotels and Resorts
|
101
|
28,311
|
52.0%
|
$108.89
|
$56.62
|
|
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
94
|
13,692
|
62.0%
|
$101.09
|
$62.64
|
|
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
165
|
15,066
|
54.0%
|
$77.24
|
$41.73
|
|
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
76
|
7,100
|
53.3%
|
$71.94
|
$38.34
|
|
|
|
|
|
|
|
|
|
Ramada
|
896
|
119,042
|
48.8%
|
$75.61
|
$36.93
|
|
|
|
|
|
|
|
|
|
Baymont
|
261
|
21,933
|
41.9%
|
$59.18
|
$24.78
|
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,877
|
149,980
|
41.4%
|
$58.09
|
$24.05
|
|
|
|
|
|
|
|
|
|
Super
8
|
2,174
|
136,267
|
46.1%
|
$52.53
|
$24.21
|
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
474
|
46,362
|
42.5%
|
$57.45
|
$24.42
|
|
|
|
|
|
|
|
|
|
Travelodge
|
436
|
31,908
|
40.8%
|
$60.54
|
$24.72
|
|
|
|
|
|
|
|
|
|
Microtel
Inns & Suites
|
316
|
22,539
|
45.9%
|
$56.57
|
$25.97
|
|
|
|
|
|
|
|
|
|
Knights
Inn
|
336
|
20,335
|
35.0%
|
$40.98
|
$14.35
|
|
|
|
|
|
|
|
|
|
Other
|
1
|
200
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,207
|
612,735
|
45.3%
|
$64.44
|
$29.18
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
162
|
20,641
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,369
|
633,376
|
|
|
|
|
_______________
|
|
|
|
|
|
|
NOTE: A
glossary of terms is included in Table 3 (3 of 3); RevPAR may not
recalculate by multiplying average occupancy rate by ADR due to
rounding.
|
|
|
|
|
|
|
|
|
Table 6
|
|
(2 of
2)
|
|
Wyndham
Worldwide Corporation
|
|
BRAND
SYSTEMS DETAILS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
and For the Twelve Months Ended December 31, 2011
|
|
Brand
|
Number
of Properties
|
Number
of Rooms
|
Average
Occupancy Rate
|
Average
Daily Rate (ADR)
|
Average
Revenue Per Available Room (RevPAR)
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
|
Wyndham
Hotels and Resorts
|
100
|
26,180
|
58.4%
|
$108.27
|
$63.22
|
|
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
91
|
13,076
|
60.5%
|
$103.27
|
$62.48
|
|
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
162
|
14,836
|
59.7%
|
$80.61
|
$48.11
|
|
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
74
|
7,036
|
61.1%
|
$74.76
|
$45.69
|
|
|
|
|
|
|
|
|
|
Ramada
|
845
|
114,306
|
51.4%
|
$76.40
|
$39.29
|
|
|
|
|
|
|
|
|
|
Baymont
|
259
|
21,605
|
47.5%
|
$62.00
|
$29.43
|
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,864
|
150,436
|
47.0%
|
$61.42
|
$28.88
|
|
|
|
|
|
|
|
|
|
Super
8
|
2,249
|
142,254
|
52.1%
|
$54.32
|
$28.29
|
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
451
|
45,115
|
46.7%
|
$60.72
|
$28.33
|
|
|
|
|
|
|
|
|
|
Travelodge
|
440
|
33,081
|
46.7%
|
$65.12
|
$30.41
|
|
|
|
|
|
|
|
|
|
Microtel
Inns & Suites
|
315
|
22,441
|
52.7%
|
$59.07
|
$31.11
|
|
|
|
|
|
|
|
|
|
Knights
Inn
|
349
|
21,698
|
38.7%
|
$42.32
|
$16.39
|
|
|
|
|
|
|
|
|
|
Dream
|
5
|
990
|
75.6%
|
$198.31
|
$149.88
|
|
|
|
|
|
|
|
|
|
Night
|
1
|
72
|
94.0%
|
$241.42
|
$227.05
|
|
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,205
|
613,126
|
50.2%
|
$66.46
|
$33.34
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
162
|
20,803
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,367
|
633,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
and For the Twelve Months Ended December 31, 2010
|
|
Brand
|
Number
of Properties
|
Number
of Rooms
|
Average
Occupancy Rate
|
Average
Daily Rate (ADR)
|
Average
Revenue Per Available Room (RevPAR)
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
|
Wyndham
Hotels and Resorts
|
101
|
28,311
|
55.0%
|
$109.23
|
$60.10
|
|
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
94
|
13,692
|
62.6%
|
$92.47
|
$57.86
|
|
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
165
|
15,066
|
57.6%
|
$79.09
|
$45.56
|
|
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
76
|
7,100
|
55.4%
|
$75.78
|
$41.98
|
|
|
|
|
|
|
|
|
|
Ramada
|
896
|
119,042
|
49.6%
|
$73.45
|
$36.43
|
|
|
|
|
|
|
|
|
|
Baymont
|
261
|
21,933
|
46.5%
|
$60.60
|
$28.19
|
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,877
|
149,980
|
45.5%
|
$60.46
|
$27.52
|
|
|
|
|
|
|
|
|
|
Super
8
|
2,174
|
136,267
|
49.3%
|
$55.54
|
$27.41
|
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
474
|
46,362
|
45.2%
|
$60.05
|
$27.13
|
|
|
|
|
|
|
|
|
|
Travelodge
|
436
|
31,908
|
44.7%
|
$63.51
|
$28.39
|
|
|
|
|
|
|
|
|
|
Microtel
Inns & Suites
|
316
|
22,539
|
49.8%
|
$57.35
|
$28.54
|
|
|
|
|
|
|
|
|
|
Knights
Inn
|
336
|
20,335
|
37.3%
|
$42.28
|
$15.76
|
|
|
|
|
|
|
|
|
|
Other
|
1
|
200
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,207
|
612,735
|
48.0%
|
$64.85
|
$31.14
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
162
|
20,641
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,369
|
633,376
|
|
|
|
|
_______________
|
|
|
|
|
|
|
NOTE: A
glossary of terms is included in Table 3 (3 of 3); RevPAR may not
recalculate by multiplying average occupancy rate by ADR due to
rounding.
|
|
|
|
|
|
|
|
|
Table 7
|
|
(1 of
2)
|
|
Wyndham
Worldwide
|
|
NON-GAAP
RECONCILIATION
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended March 31, 2011
|
Net
Revenues
|
|
Reported
EBITDA
|
Legacy
Adjustments (b)
|
Asset
Impairments
|
Restructuring
Costs
|
VAT
Adjustments (e)
|
CTA
Writeoff (f)
|
Adjusted
EBITDA
|
|
Lodging
|
$ 149
|
|
$ 27
|
$ -
|
$ 13
|
(c)
|
$ -
|
|
$ -
|
$ -
|
$ 40
|
|
Vacation
Exchange and Rentals
|
356
|
|
93
|
-
|
-
|
|
-
|
|
-
|
-
|
93
|
|
Vacation
Ownership
|
450
|
|
97
|
-
|
-
|
|
(1)
|
(d)
|
-
|
-
|
96
|
|
Total
Reportable Segments
|
955
|
|
217
|
-
|
13
|
|
(1)
|
|
-
|
-
|
229
|
|
Corporate
and Other (a)
|
(3)
|
|
(14)
|
(11)
|
-
|
|
-
|
|
-
|
-
|
(25)
|
|
Total
Company
|
$ 952
|
|
$ 203
|
$ (11)
|
$ 13
|
|
$ (1)
|
|
$ -
|
$ -
|
$ 204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
$ 190
|
|
$ 66
|
$ -
|
$ -
|
|
$ -
|
|
$ -
|
$ -
|
$ 66
|
|
Vacation
Exchange and Rentals
|
361
|
|
106
|
-
|
-
|
|
7
|
(g)
|
(31)
|
-
|
82
|
|
Vacation
Ownership
|
541
|
|
130
|
-
|
-
|
|
-
|
|
-
|
-
|
130
|
|
Total
Reportable Segments
|
1,092
|
|
302
|
-
|
-
|
|
7
|
|
(31)
|
-
|
278
|
|
Corporate
and Other (a)
|
(2)
|
|
(26)
|
3
|
-
|
|
-
|
|
-
|
-
|
(23)
|
|
Total
Company
|
$ 1,090
|
|
$ 276
|
$ 3
|
$ -
|
|
$ 7
|
|
$ (31)
|
$ -
|
$ 255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
$ 222
|
|
$ 67
|
$ -
|
$ -
|
|
$ -
|
|
$ -
|
$ -
|
$ 67
|
|
Vacation
Exchange and Rentals
|
436
|
|
131
|
-
|
-
|
|
-
|
|
-
|
4
|
135
|
|
Vacation
Ownership
|
559
|
|
149
|
-
|
-
|
|
-
|
|
-
|
-
|
149
|
|
Total
Reportable Segments
|
1,217
|
|
347
|
-
|
-
|
|
-
|
|
-
|
4
|
351
|
|
Corporate
and Other (a)
|
(5)
|
|
(18)
|
(8)
|
-
|
|
-
|
|
-
|
-
|
(26)
|
|
Total
Company
|
$ 1,212
|
|
$ 329
|
$ (8)
|
$ -
|
|
$ -
|
|
$ -
|
$ 4
|
$ 325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
$ 188
|
|
$ (3)
|
$ -
|
$ 44
|
(h)
|
$ -
|
|
$ -
|
$ -
|
$ 41
|
|
Vacation
Exchange and Rentals
|
291
|
|
38
|
-
|
-
|
|
-
|
|
-
|
-
|
38
|
|
Vacation
Ownership
|
527
|
|
139
|
-
|
-
|
|
-
|
|
-
|
-
|
139
|
|
Total
Reportable Segments
|
1,006
|
|
174
|
-
|
44
|
|
-
|
|
-
|
-
|
218
|
|
Corporate
and Other (a)
|
(6)
|
|
(26)
|
-
|
-
|
|
-
|
|
-
|
-
|
(26)
|
|
Total
Company
|
$ 1,000
|
|
$ 148
|
$ -
|
$ 44
|
|
$ -
|
|
$ -
|
$ -
|
$ 192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
months ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
$ 749
|
|
$ 157
|
$ -
|
$ 57
|
(c) (h)
|
$ -
|
|
$ -
|
$ -
|
$ 214
|
|
Vacation
Exchange and Rentals
|
1,444
|
|
368
|
-
|
-
|
|
7
|
(g)
|
(31)
|
4
|
348
|
|
Vacation
Ownership
|
2,077
|
|
515
|
-
|
-
|
|
(1)
|
(d)
|
-
|
-
|
514
|
|
Total
Reportable Segments
|
4,270
|
|
1,040
|
-
|
57
|
|
6
|
|
(31)
|
4
|
1,076
|
|
Corporate
and Other (a)
|
(16)
|
|
(84)
|
(16)
|
-
|
|
-
|
|
-
|
-
|
(100)
|
|
Total
Company
|
$ 4,254
|
|
$ 956
|
$ (16)
|
$ 57
|
|
$ 6
|
|
$ (31)
|
$ 4
|
$ 976
|
|
________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes
the elimination of transactions between segments.
|
|
(b)
|
Relates
to the net expense/(benefit) from the resolution of and adjustment to
certain contingent liabilities and assets resulting from our separation.
|
|
(c)
|
Relates
to a non-cash impairment charge related to a write-down of an
international joint venture at the Company's lodging business.
|
|
(d)
|
Relates
to the reversal of costs incurred as a result of various strategic
initiatives commenced by the Company during 2008.
|
|
(e)
|
Relates
to a net benefit resulting from a refund of value added taxes.
|
|
(f)
|
Relates
to the write-off of foreign exchange translation adjustments associated
with the liquidation of a foreign entity.
|
|
(g)
|
Relates
to costs incurred as a result of a strategic initiative commenced by
the Company during 2010.
|
|
(h)
|
Relates
to non-cash impairment charges primarily related to the write-down of
certain franchise and management agreements and development advance
notes at the Company's lodging business.
|
|
|
|
Table 7
|
|
(2 of
2)
|
|
Wyndham
Worldwide
|
|
NON-GAAP
RECONCILIATIONS
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended March 31, 2010
|
Net
Revenues
|
|
Reported
EBITDA
|
Acquisition
Costs (b)
|
Legacy
Adjustments (c)
|
Restructuring
Costs (d)
|
Adjusted
EBITDA
|
|
Lodging
|
$ 144
|
|
$ 33
|
$ -
|
$ -
|
$ -
|
$ 33
|
|
Vacation
Exchange and Rentals
|
300
|
|
80
|
4
|
-
|
-
|
84
|
|
Vacation
Ownership
|
444
|
|
82
|
-
|
-
|
-
|
82
|
|
Total
Reportable Segments
|
888
|
|
195
|
4
|
-
|
-
|
199
|
|
Corporate
and Other (a)
|
(2)
|
|
(20)
|
-
|
2
|
-
|
(18)
|
|
Total
Company
|
$ 886
|
|
$ 175
|
$ 4
|
$ 2
|
$ -
|
$ 181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30, 2010
|
|
|
|
|
|
|
|
|
Lodging
|
$ 178
|
|
$ 49
|
$ 1
|
$ -
|
$ -
|
$ 50
|
|
Vacation
Exchange and Rentals
|
281
|
|
78
|
-
|
-
|
-
|
78
|
|
Vacation
Ownership
|
505
|
|
104
|
-
|
-
|
-
|
104
|
|
Total
Reportable Segments
|
964
|
|
231
|
1
|
-
|
-
|
232
|
|
Corporate
and Other (a)
|
(1)
|
|
(14)
|
-
|
-
|
-
|
(14)
|
|
Total
Company
|
$ 963
|
|
$ 217
|
$ 1
|
$ -
|
$ -
|
$ 218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30, 2010
|
|
|
|
|
|
|
|
|
Lodging
|
$ 203
|
|
$ 67
|
$ -
|
$ -
|
$ -
|
$ 67
|
|
Vacation
Exchange and Rentals
|
330
|
|
103
|
1
|
-
|
-
|
104
|
|
Vacation
Ownership
|
533
|
|
123
|
-
|
-
|
-
|
123
|
|
Total
Reportable Segments
|
1,066
|
|
293
|
1
|
-
|
-
|
294
|
|
Corporate
and Other (a)
|
(1)
|
|
30
|
-
|
(52)
|
-
|
(22)
|
|
Total
Company
|
$ 1,065
|
|
$ 323
|
$ 1
|
$ (52)
|
$ -
|
$ 272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31, 2010
|
|
|
|
|
|
|
|
|
Lodging
|
$ 163
|
|
$ 40
|
$ -
|
$ -
|
$ -
|
$ 40
|
|
Vacation
Exchange and Rentals
|
282
|
|
32
|
1
|
-
|
9
|
42
|
|
Vacation
Ownership
|
497
|
|
131
|
-
|
-
|
-
|
131
|
|
Total
Reportable Segments
|
942
|
|
203
|
1
|
-
|
9
|
213
|
|
Corporate
and Other (a)
|
(5)
|
|
(20)
|
-
|
(3)
|
-
|
(23)
|
|
Total
Company
|
$ 937
|
|
$ 183
|
$ 1
|
$ (3)
|
$ 9
|
$ 190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
months ended December 31, 2010
|
|
|
|
|
|
|
|
|
Lodging
|
$ 688
|
|
$ 189
|
$ 1
|
$ -
|
$ -
|
$ 190
|
|
Vacation
Exchange and Rentals
|
1,193
|
|
293
|
6
|
-
|
9
|
308
|
|
Vacation
Ownership
|
1,979
|
|
440
|
-
|
-
|
-
|
440
|
|
Total
Reportable Segments
|
3,860
|
|
922
|
7
|
-
|
9
|
938
|
|
Corporate
and Other (a)
|
(9)
|
|
(24)
|
-
|
(54)
|
-
|
(78)
|
|
Total
Company
|
$ 3,851
|
|
$ 898
|
$ 7
|
$ (54)
|
$ 9
|
$ 860
|
|
________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
Amounts may not add across due to rounding.
|
|
(a)
|
Includes
the elimination of transactions between segments.
|
|
(b)
|
Relates
to costs incurred in connection with the Company's acquisitions of
Hoseasons during March 2010, the TRYP hotel brand during June 2010,
ResortQuest during September 2010 and James Villa Holidays during
November 2010.
|
|
(c)
|
Relates
to the net expense/(benefit) from the resolution of and adjustment to
certain contingent liabilities and assets resulting from our separation.
|
|
(d)
|
Relates
to costs incurred as a result of a strategic initiative commenced by
the Company during 2010.
|
|
|
|
Table 8
|
|
(1 of
4)
|
|
|
|
Wyndham
Worldwide Corporation
|
|
NON-GAAP
FINANCIAL INFORMATION
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy
|
|
Asset
|
|
VAT
|
|
|
|
|
|
As
Reported
|
|
Adjustments
|
|
Impairments
|
|
Adjustments
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
$ 434
|
|
|
|
|
|
|
|
$ 434
|
|
|
Vacation
ownership interest sales
|
295
|
|
|
|
|
|
|
|
295
|
|
|
Franchise
fees
|
127
|
|
|
|
|
|
|
|
127
|
|
|
Consumer
financing
|
105
|
|
|
|
|
|
|
|
105
|
|
|
Other
|
39
|
|
|
|
|
|
|
|
39
|
|
Net
revenues
|
1,000
|
|
-
|
|
-
|
|
-
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
422
|
|
|
|
|
|
|
|
422
|
|
|
Cost
of vacation ownership interests
|
37
|
|
|
|
|
|
|
|
37
|
|
|
Consumer
financing interest
|
25
|
|
|
|
|
|
|
|
25
|
|
|
Marketing
and reservation
|
156
|
|
|
|
|
|
|
|
156
|
|
|
General
and administrative
|
170
|
|
|
|
|
|
|
|
170
|
|
|
Asset
impairments
|
44
|
|
|
|
(44)
|
(a)
|
|
|
-
|
|
|
Depreciation
and amortization
|
45
|
|
|
|
|
|
|
|
45
|
|
Total
expenses
|
899
|
|
-
|
|
(44)
|
|
-
|
|
855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
101
|
|
-
|
|
44
|
|
-
|
|
145
|
|
Other
income, net
|
(2)
|
|
|
|
|
|
|
|
(2)
|
|
Interest
expense
|
37
|
|
|
|
|
|
|
|
37
|
|
Interest
income
|
(1)
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
67
|
|
-
|
|
44
|
|
-
|
|
111
|
|
Provision
for income taxes
|
11
|
|
3
|
(b)
|
17
|
(c)
|
7
|
(d)
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 56
|
|
$ (3)
|
|
$ 27
|
|
$ (7)
|
|
$ 73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.37
|
|
$
(0.02)
|
|
$ 0.18
|
|
$
(0.05)
|
|
$ 0.49
|
|
|
Diluted
|
0.37
|
|
(0.02)
|
|
0.18
|
|
(0.05)
|
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
151
|
|
151
|
|
151
|
|
151
|
|
151
|
|
|
Diluted
|
154
|
|
154
|
|
154
|
|
154
|
|
154
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
Note: EPS
amounts may not add due to rounding.
|
|
(a)
|
Relates
to non-cash impairment charges primarily due to the write-down of
certain franchise and management agreements and development advance
notes at the Company's lodging business.
|
|
(b)
|
Relates
to the reversal of certain legacy tax liabilities resulting from our
separation from Cendant.
|
|
(c)
|
Relates
to the tax effect of the adjustment.
|
|
(d)
|
Relates
to additional tax benefits from the utilization of foreign tax credits
generated from the value added tax refund and related interest income
recorded during the second and third quarters of 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8
|
|
(2 of
4)
|
|
|
|
Wyndham
Worldwide Corporation
|
|
NON-GAAP
FINANCIAL INFORMATION
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Early
Extinguishment of
Debt
|
|
Tax
Valuation
Allowance
|
|
Legacy
Adjustments
|
|
Asset
Impairments
|
|
Restructuring
Costs
|
|
VAT
Adjustments
|
|
CTA
Writeoff
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
$ 2,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 2,012
|
|
|
Vacation
ownership interest sales
|
1,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,150
|
|
|
Franchise
fees
|
522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
522
|
|
|
Consumer
financing
|
415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
415
|
|
|
Other
|
155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
155
|
|
Net
revenues
|
4,254
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
1,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
(i)
|
1,777
|
|
|
Cost
of vacation ownership interests
|
152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
152
|
|
|
Consumer
financing interest
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92
|
|
|
Marketing
and reservation
|
628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
628
|
|
|
General
and administrative
|
593
|
|
|
|
|
|
12
|
(b)
|
|
|
|
|
31
|
(f)
|
|
|
636
|
|
|
Asset
impairment
|
57
|
|
|
|
|
|
|
|
(57)
|
(d)
|
|
|
|
|
|
|
-
|
|
|
Restructuring
|
6
|
|
|
|
|
|
|
|
|
|
(6)
|
(e)
|
|
|
|
|
-
|
|
|
Depreciation
and amortization
|
178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
178
|
|
Total
expenses
|
3,487
|
|
-
|
|
-
|
|
12
|
|
(57)
|
|
(6)
|
|
31
|
|
(4)
|
|
3,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
767
|
|
-
|
|
-
|
|
(12)
|
|
57
|
|
6
|
|
(31)
|
|
4
|
|
791
|
|
Other
income, net
|
(11)
|
|
|
|
|
|
4
|
(c)
|
|
|
|
|
|
|
|
|
(7)
|
|
Interest
expense
|
152
|
|
(12)
|
(a)
|
|
|
|
|
|
|
|
|
(3)
|
(g)
|
|
|
137
|
|
Interest
income
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
16
|
(h)
|
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
650
|
|
12
|
|
-
|
|
(16)
|
|
57
|
|
6
|
|
(44)
|
|
4
|
|
669
|
|
Provision
for income taxes
|
233
|
|
5
|
(j)
|
13
|
(k)
|
(2)
|
(l)
|
22
|
(j)
|
1
|
(j)
|
(17)
|
(j)
|
-
|
(j)
|
255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 417
|
|
$ 7
|
|
$ (13)
|
|
$ (14)
|
|
$ 35
|
|
$ 5
|
|
$ (27)
|
|
$ 4
|
|
$ 414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 2.57
|
|
$ 0.04
|
|
$
(0.08)
|
|
$
(0.08)
|
|
$ 0.21
|
|
$ 0.03
|
|
$
(0.17)
|
|
$ 0.02
|
|
$ 2.55
|
|
|
Diluted
|
2.51
|
|
0.04
|
|
(0.08)
|
|
(0.08)
|
|
0.21
|
|
0.03
|
|
(0.17)
|
|
0.02
|
|
2.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
162
|
|
162
|
|
162
|
|
162
|
|
162
|
|
162
|
|
162
|
|
162
|
|
162
|
|
|
Diluted
|
166
|
|
166
|
|
166
|
|
166
|
|
166
|
|
166
|
|
166
|
|
166
|
|
166
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: EPS
amounts may not add due to rounding.
|
|
(a)
|
Relates
to costs incurred for the early repurchase of a portion of the
Company's 3.50% convertible notes during 2011.
|
|
(b)
|
Relates
to the net benefit from the resolution of and adjustment to certain
contingent liabilities and assets resulting from our separation from
Cendant.
|
|
(c)
|
Relates
to a gain on the redemption of a preferred stock investment allocated
to the Company in connection with our separation from Cendant.
|
|
(d)
|
Relates
to non-cash impairment charges due to a write-down of certain franchise
and management agreements and development advance notes and the
write-down of an international joint venture in the Company's lodging
business.
|
|
(e)
|
Primarily
relates to costs incurred as a result of a strategic initiative
commenced by the Company during 2010.
|
|
(f)
|
Relates
to a net benefit resulting from a refund of value added taxes.
|
|
(g)
|
Relates
to interest on value added tax accruals.
|
|
(h)
|
Relates
to interest income associated with a refund of value added taxes.
|
|
(i)
|
Relates
to the write-off of foreign exchange translation adjustments associated
with the liquidation of a foreign entity.
|
|
(j)
|
Relates
to the tax effect of the adjustments.
|
|
(k)
|
Relates
to the reversal of a tax valuation allowance.
|
|
(l)
|
Relates
to the tax effect of the adjustments and the reversal of certain legacy
tax liabilities resulting from our separation from Cendant.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8
|
|
(3 of
4)
|
|
|
|
Wyndham
Worldwide Corporation
|
|
NON-GAAP
FINANCIAL INFORMATION
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Early
Extinguishment
|
|
Acquisition
|
|
Legacy
|
|
Restructuring
|
|
|
|
|
|
As
Reported
|
|
of Debt
|
|
Costs
|
|
Adjustments
|
|
Costs
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
$ 409
|
|
|
|
|
|
|
|
|
|
$ 409
|
|
|
Vacation
ownership interest sales
|
276
|
|
|
|
|
|
|
|
|
|
276
|
|
|
Franchise
fees
|
107
|
|
|
|
|
|
|
|
|
|
107
|
|
|
Consumer
financing
|
107
|
|
|
|
|
|
|
|
|
|
107
|
|
|
Other
|
38
|
|
|
|
|
|
|
|
|
|
38
|
|
Net
revenues
|
937
|
|
-
|
|
-
|
|
-
|
|
-
|
|
937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
409
|
|
|
|
(1)
|
(b)
|
|
|
|
|
408
|
|
|
Cost
of vacation ownership interests
|
47
|
|
|
|
|
|
|
|
|
|
47
|
|
|
Consumer
financing interest
|
25
|
|
|
|
|
|
|
|
|
|
25
|
|
|
Marketing
and reservation
|
121
|
|
|
|
|
|
|
|
|
|
121
|
|
|
General
and administrative
|
145
|
|
|
|
|
|
3
|
(c)
|
|
|
148
|
|
|
Restructuring
|
9
|
|
|
|
|
|
|
|
(9)
|
(d)
|
-
|
|
|
Depreciation
and amortization
|
44
|
|
|
|
|
|
|
|
|
|
44
|
|
Total
expenses
|
800
|
|
-
|
|
(1)
|
|
3
|
|
(9)
|
|
793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
137
|
|
|
|
1
|
|
(3)
|
|
9
|
|
144
|
|
Other
income, net
|
(2)
|
|
|
|
|
|
|
|
|
|
(2)
|
|
Interest
expense
|
34
|
|
(3)
|
(a)
|
|
|
|
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
105
|
|
3
|
|
1
|
|
(3)
|
|
9
|
|
115
|
|
Provision
for income taxes
|
27
|
|
1
|
(e)
|
-
|
(e)
|
-
|
(e)
|
3
|
(e)
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 78
|
|
$ 2
|
|
$ 1
|
|
$ (3)
|
|
$ 6
|
|
$ 84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.45
|
|
$ 0.01
|
|
$ 0.01
|
|
$
(0.02)
|
|
$ 0.04
|
|
$ 0.48
|
|
|
Diluted
|
0.43
|
|
0.01
|
|
-
|
|
(0.02)
|
|
0.03
|
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
174
|
|
174
|
|
174
|
|
174
|
|
174
|
|
174
|
|
|
Diluted
|
182
|
|
182
|
|
182
|
|
182
|
|
182
|
|
182
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: EPS
amounts may not add across due to rounding.
|
|
(a)
|
Relates
to costs incurred for the early repurchase of a portion of the
Company's 3.50% convertible notes during the fourth quarter of 2010.
|
|
(b)
|
Relates
to costs incurred in connection with the Company's acquisition of James
Villa Holidays during November 2010.
|
|
(c)
|
Relates
to the net benefit from the resolution of and adjustment to certain
contingent liabilities and assets resulting from our separation from
Cendant.
|
|
(d)
|
Relates
to costs incurred as a result of various strategic initiatives
commenced by the Company during 2010.
|
|
(e)
|
Relates
to the tax effect of the adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8
|
|
(4 of
4)
|
|
|
|
Wyndham
Worldwide Corporation
|
|
NON-GAAP
FINANCIAL INFORMATION
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Early
Extinguishment of
Debt
|
|
Acquisition
Costs
|
|
Legacy
Adjustments
|
|
Restructuring
Costs
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
$ 1,706
|
|
|
|
|
|
|
|
|
|
$ 1,706
|
|
|
Vacation
ownership interest sales
|
1,072
|
|
|
|
|
|
|
|
|
|
1,072
|
|
|
Franchise
fees
|
461
|
|
|
|
|
|
|
|
|
|
461
|
|
|
Consumer
financing
|
425
|
|
|
|
|
|
|
|
|
|
425
|
|
|
Other
|
187
|
|
|
|
|
|
|
|
|
|
187
|
|
Net
revenues
|
3,851
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
1,587
|
|
|
|
(7)
|
(b)
|
|
|
|
|
1,580
|
|
|
Cost
of vacation ownership interests
|
184
|
|
|
|
|
|
|
|
|
|
184
|
|
|
Consumer
financing interest
|
105
|
|
|
|
|
|
|
|
|
|
105
|
|
|
Marketing
and reservation
|
531
|
|
|
|
|
|
|
|
|
|
531
|
|
|
General
and administrative
|
540
|
|
|
|
|
|
54
|
(c)
|
|
|
594
|
|
|
Asset
impairment
|
4
|
|
|
|
|
|
|
|
|
|
4
|
|
|
Restructuring
|
9
|
|
|
|
|
|
|
|
(9)
|
(d)
|
-
|
|
|
Depreciation
and amortization
|
173
|
|
|
|
|
|
|
|
|
|
173
|
|
Total
expenses
|
3,133
|
|
-
|
|
(7)
|
|
54
|
|
(9)
|
|
3,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
718
|
|
-
|
|
7
|
|
(54)
|
|
9
|
|
680
|
|
Other
income, net
|
(7)
|
|
|
|
-
|
|
|
|
|
|
(7)
|
|
Interest
expense
|
167
|
|
(30)
|
(a)
|
|
|
|
|
|
|
137
|
|
Interest
income
|
(5)
|
|
|
|
|
|
|
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
563
|
|
30
|
|
7
|
|
(54)
|
|
9
|
|
555
|
|
Provision
for income taxes
|
184
|
|
12
|
(e)
|
1
|
(e)
|
(13)
|
(e)
|
3
|
(e)
|
187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 379
|
|
$ 18
|
|
$ 6
|
|
$ (41)
|
|
$ 6
|
|
$ 368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 2.13
|
|
$ 0.10
|
|
$ 0.04
|
|
$
(0.23)
|
|
$ 0.03
|
|
$ 2.08
|
|
|
Diluted
|
2.05
|
|
0.10
|
|
0.03
|
|
(0.22)
|
|
0.03
|
|
2.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
178
|
|
178
|
|
178
|
|
178
|
|
178
|
|
178
|
|
|
Diluted
|
185
|
|
185
|
|
185
|
|
185
|
|
185
|
|
185
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: EPS
amounts may not add across due to rounding.
|
|
(a)
|
Relates
to costs incurred for the early extinguishment of the Company's term
loan facility and revolving foreign credit facility during March 2010
and the early repurchase of a portion of the Company's 3.50%
convertible notes during the third and fourth quarters of 2010.
|
|
(b)
|
Relates
to costs incurred in connection with the Company's acquisitions of
Hoseasons during March 2010, the Tryp hotel brand during June 2010,
ResortQuest during September 2010 and James Villa Holidays during
November 2010.
|
|
(c)
|
Relates
to the net benefit from the resolution of and adjustment to certain
contingent liabilities and assets primarily related to an accrual that
was no longer needed for outstanding Cendant contingent tax liabilities
since Cendant and the IRS agreed to settle the IRS examination of
Cendant's taxable years 2003 through 2006 on July 15, 2010.
|
|
(d)
|
Relates
to costs incurred as a result of various strategic initiatives
commenced by the Company during 2010.
|
|
(e)
|
Relates
to the tax effect of the adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9
|
|
Wyndham
Worldwide Corporation
|
|
NON-GAAP
RECONCILIATIONS AND FINANCIAL INFORMATION
|
|
(In
millions)
|
|
|
|
FREE
CASH FLOW
|
|
The
Company defines free cash flow as net cash provided by operating
activities less capital expenditures, equity investments and
development advances and excluding cash payments related to the
Company's contingent tax liabilities that it assumed and is responsible
for pursuant to its separation from Cendant. The Company considers free
cash flow to be a liquidity measure that provides useful information to
management and investors about the amount of cash generated by the
business that, after the acquisition of property and equipment, equity
investments and development advances, can be used for strategic
opportunities, including making acquisitions, paying dividends,
repurchasing the Company's common stock and strengthening the balance
sheet. Analysis of free cash flow also facilitates management's
comparisons of the Company's operating results to its competitors'
operating results. A limitation of using free cash flow versus the GAAP
measure of net cash provided by operating activities as a means for
evaluating Wyndham Worldwide is that free cash flow does not represent
the total increase or decrease in the cash balance from operations for
the period.
|
|
|
|
|
|
|
|
|
|
The
following table provides more details on the GAAP financial measure
that is most directly comparable to the non-GAAP financial measure and
the related reconciliation between these financial measures:
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended December 31,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities
|
|
$ 1,003
|
|
$ 635
|
|
|
|
Less:
Property and equipment additions
|
|
(239)
|
|
(167)
|
|
|
|
Less:
Equity investments and development advances
|
|
(10)
|
|
(10)
|
|
|
|
Plus:
Cash payments related to contingent IRS tax liabilities
|
|
-
|
|
145
|
|
|
|
Free
cash flow
|
|
$ 754
|
|
$ 603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
VOI SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
following table provides a reconciliation of Gross VOI sales (see Table
3) to Vacation ownership interest sales (see Table 4):
|
|
|
|
|
|
|
|
|
|
Year
|
|
|
|
|
|
|
|
2011
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 319
|
$ 412
|
$ 455
|
$ 409
|
$ 1,595
|
|
Less:
Sales under the WAAM
|
|
(18)
|
(19)
|
(38)
|
(31)
|
(106)
|
|
Gross
VOI sales, net of WAAM sales
|
|
302
|
393
|
417
|
378
|
1,489
|
|
Less:
Loan loss provision
|
|
(79)
|
(80)
|
(96)
|
(83)
|
(339)
|
|
Vacation
ownership interest sales
|
|
$ 222
|
$ 313
|
$ 320
|
$ 295
|
$ 1,150
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 308
|
$ 371
|
$ 412
|
$ 373
|
$ 1,464
|
|
Less:
Sales under the WAAM
|
|
(5)
|
(13)
|
(20)
|
(14)
|
(51)
|
|
Gross
VOI sales, net of WAAM sales
|
|
303
|
358
|
392
|
359
|
1,413
|
|
Less:
Loan loss provision
|
|
(86)
|
(87)
|
(85)
|
(82)
|
(340)
|
|
Vacation
ownership interest sales
|
|
$ 217
|
$ 271
|
$ 308
|
$ 276
|
$ 1,072
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 280
|
$ 327
|
$ 366
|
$ 343
|
$ 1,315
|
|
Plus:
Net effect of percentage-of-completion accounting
|
|
67
|
37
|
36
|
47
|
187
|
|
Less:
Loan loss provision
|
|
(107)
|
(122)
|
(117)
|
(103)
|
(449)
|
|
Vacation
ownership interest sales
|
|
$ 239
|
$ 242
|
$ 285
|
$ 287
|
$ 1,053
|
|
|
|
|
|
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 458
|
$ 532
|
$ 566
|
$ 432
|
$ 1,987
|
|
Plus/(less):
Net effect of percentage-of-completion accounting
|
|
(82)
|
(5)
|
(2)
|
14
|
(75)
|
|
Less:
Loan loss provision
|
|
(82)
|
(113)
|
(119)
|
(136)
|
(450)
|
|
Vacation
ownership interest sales
|
|
$ 294
|
$ 414
|
$ 446
|
$ 309
|
$ 1,463
|
|
_____________
|
|
|
|
|
|
|
|
Note:
Amounts may not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
following represents tele-sales upgrades, which are excluded from Gross
VOI sales in the Company's VPG calculation (see Table 3):
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
|
|
2011
|
|
$ 18
|
$ 18
|
$ 21
|
$ 11
|
$ 68
|
|
2010
|
|
$ 20
|
$ 20
|
$ 23
|
$ 17
|
$ 80
|
|
2009
|
|
$ 24
|
$ 23
|
$ 29
|
$ 28
|
$ 104
|
|
2008
|
|
$ 33
|
$ 35
|
$ 49
|
$ 40
|
$ 156
|
|
_____________
|
|
|
|
|
|
|
|
Note:
Amounts may not add across due to rounding.
|
|