Press Release

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

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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

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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.