EXHIBIT 99.1

 

LOGO

Wyndham Worldwide Reports Fourth Quarter and Full Year 2011 Earnings

Full Year Adjusted EPS Growth of 25%

Completes $902 Million of Share Repurchases and Increases Dividend 53%

PARSIPPANY, N.J. (February 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.

# # #

Investor and Media contact:

Margo C. Happer

Senior Vice President, Investor Relations

Wyndham Worldwide Corporation

(973) 753-6472

margo.happer@wyn.com


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  
     Net Revenues     Adjusted
EBITDA
    Net Revenues     Adjusted
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 acquistion 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  
     Net Revenues     Adjusted
EBITDA
    Net Revenues     Adjusted
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
December 31,
    Twelve Months Ended
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 December December December December
    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 December December December December
     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)

 

0 0 0 0 0 0 0 0
    Net
Revenues
    Reported
EBITDA
    Legacy
Adjustments(b)
    Asset
Impairments
    Restructuring
Costs
    VAT
Adjustments(e)
    CTA
Writeoff(f)
    Adjusted
EBITDA
 

Three months ended March 31, 2011

               

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)

 

0 0 0 0 0 0
     Net
Revenues
    Reported
EBITDA
    Acquisition
Costs(b)
     Legacy
Adjustments(c)
    Restructuring
Costs(d)
     Adjusted
EBITDA
 
  

 

 

   

 

 

 

Three months ended March 31, 2010

              

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  
     As Reported     Legacy
Adjustments
    Asset
Impairments
    VAT
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  
     As
Reported
    Early
Extinguishment
of Debt
    Acquisition Costs     Legacy
Adjustments
    Restructuring 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):

 

Full Year Full Year Full Year Full Year Full Year Full Year

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.