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 Wyndham Worldwide Reports Fourth Quarter and Full Year 2015 Results
   Tuesday, February 09, 2016 6:30:00 AM ET

Wyndham Worldwide Corporation (WYN ) today announced results for the three months and year ended December 31, 2015.

HIGHLIGHTS:

-- Fourth quarter adjusted diluted earnings per share (EPS) was $0.98, an increase of 9% from adjusted diluted EPS of $0.90 in the fourth quarter of 2014. Reported diluted EPS was $1.21, compared with $0.65 in the fourth quarter of 2014.

-- Full year adjusted diluted earnings per share (EPS) was $5.11, an increase of 13% from adjusted diluted EPS of $4.53 in 2014. Reported diluted EPS was $5.14, compared with $4.18 in 2014.

-- Fourth quarter 2015 revenues increased 6% and adjusted EBITDA increased 8% compared with the fourth quarter of 2014.

-- The Company’s Board of Directors authorized an increase in the quarterly cash dividend to $0.50 from $0.42 per share, beginning with the dividend that is expected to be declared in the first quarter of 2016.



-- The Company repurchased 2.2 million shares of its common stock for $165 million during the quarter.

-- The Company’s Board of Directors approved a $1 billion increase in the share repurchase authorization.

"With our strong fourth quarter financial results and sharp operational execution across our global portfolio of hospitality brands, we have delivered our sixth consecutive year of double-digit growth in full year adjusted diluted EPS," said Stephen P. Holmes, chairman and CEO. "As we enter 2016, we are confident in the strength and resilience of our business and remain focused on innovating and executing every day to deliver superior value for our shareholders and all our stakeholders. Reflecting our strong performance in 2015 and as an indication of our confidence in our prospects, the Board of Directors approved a 19% increase in our quarterly dividend and $1 billion increase in our share repurchase authorization."

FOURTH QUARTER 2015 OPERATING RESULTS Fourth quarter revenues were $1.3 billion, an increase of 6% from the prior year period.

Fourth quarter adjusted EBITDA was $273 million, compared with $252 million in the prior year period, an increase of 8%. Year-over-year adjusted EBITDA comparisons were adversely affected by foreign currency effects of $8 million in 2015. On a currency-neutral basis and excluding acquisitions and a divestiture, adjusted EBITDA also increased 8%.

Adjusted net income was $113 million, or $0.98 per diluted share, compared with $112 million, or $0.90 per diluted share for the same period in 2014. Net income and earnings per share benefited from strong operating results, but were reduced by foreign currency effects and higher interest expense. EPS also benefited from the Company’s share repurchase program.

Reported net income for the fourth quarter of 2015 was $140 million, or $1.21 per diluted share, compared with $81 million, or $0.65 per diluted share, for the fourth quarter of 2014. Reported net income in both periods reflects several items excluded from adjusted net income. The net result of these items favorably impacted fourth quarter 2015 net income by $27 million and unfavorably impacted fourth quarter 2014 net income by $31 million. Full reconciliations of adjusted net income to GAAP results appear in Table 8 of this press release. Year-over-year fourth quarter reported net income comparisons also were negatively impacted by foreign currency effects.

FULL YEAR 2015 OPERATING RESULTS Revenues for full year 2015 were $5.5 billion, an increase of 5% over the prior year period.

Adjusted EBITDA for full year 2015 was $1,297 million, compared with $1,238 million in the prior year period. Year-over-year adjusted EBITDA comparisons were adversely affected by foreign currency effects of $46 million in 2015. On a currency-neutral basis and excluding acquisitions and a divestiture, adjusted EBITDA increased 8%.

Adjusted net income for the full year 2015 was $608 million, or $5.11 per diluted share, compared with $573 million, or $4.53 per diluted share, for the prior year. The increases reflect stronger operating results across all of the Company’s businesses, partially offset by foreign currency effects. EPS also benefited from the Company’s share repurchase program.

Reported net income for full year 2015 was $612 million, or $5.14 per diluted share, compared with reported net income of $529 million, or $4.18 per diluted share, for the prior year period. Reported net income reflects several items excluded from adjusted net income. The net result of these items favorably impacted full year 2015 net income by $4 million and unfavorably impacted full year 2014 net income by $44 million. Full reconciliations of adjusted results to GAAP results appear in Table 8 of this press release.

FULL YEAR 2015 CASH FLOW Free cash flow was $769 million for the year ended December 31, 2015, compared with $749 million for the same period in 2014. The increase reflects strong operating results and lower capital expenditures. In addition, 2015 free cash flow was unfavorably impacted by changes in foreign currency exchange rates. For the year ended December 31, 2015, net cash provided by operating activities was $991 million, compared with $984 million in the prior year period. The Company defines free cash flow as net cash provided by operating activities less capital expenditures.

FOURTH QUARTER 2015 BUSINESS UNIT RESULTS

Hotel Group Revenues were $314 million in the fourth quarter of 2015, an 18% increase compared with the fourth quarter 2014. Adjusted EBITDA was $93 million, an 18% increase compared with the same period in 2014. In constant currency, excluding acquisitions and the impact of the increase in the inter-segment licensing fee rate charged for use of the Wyndham brand trade name, revenues increased 6% and adjusted EBITDA increased 10%. Results reflect higher royalty and management fees and growth in our Wyndham Rewards credit card program.

Fourth quarter domestic RevPAR increased 2.9%. In constant currency, total system-wide RevPAR was flat compared with the fourth quarter of 2014, which reflects higher unit growth in lower RevPAR countries such as China.

As of December 31, 2015, the Company’s hotel system consisted of over 7,800 properties and 678,000 rooms, a 2.6% net room increase compared with the fourth quarter of 2014. The development pipeline included 890 hotels and over 119,000 rooms, of which 60% were international and 70% were new construction.

Destination Network (formerly Vacation Exchange and Rentals) Revenues were $310 million in the fourth quarter of 2015, flat compared with the fourth quarter of 2014. In constant currency, and excluding acquisitions and a divestiture in 2014, revenues increased 5%.

Exchange revenues were $146 million, down 3% compared with the fourth quarter of 2014. In constant currency, exchange revenues were up 1% compared with the prior year, as the average number of members increased 0.7% while exchange revenue per member was flat.

Vacation rental revenues were $144 million, flat compared with the fourth quarter of 2014. In constant currency and excluding the impact of acquisitions and the divestiture, vacation rental revenues were up 8%, reflecting an 8.1% increase in transaction volume and flat average net price per vacation rental.

Adjusted EBITDA for the fourth quarter of 2015 was $43 million, a 10% increase compared with the fourth quarter of 2014. On a currency-neutral basis and excluding the impact of acquisitions and the divestiture, adjusted EBITDA increased 9% compared with the prior year period.

Vacation Ownership Revenues were $706 million in the fourth quarter of 2015, a 6% increase over the fourth quarter of 2014. In constant currency, revenues increased 7%.

Gross VOI sales were $507 million in the fourth quarter of 2015, an increase of 8% compared with the fourth quarter of 2014. In constant currency, Gross VOI sales increased 9%. Volume per guest (VPG) for the quarter increased 3.4% in constant currency and tour flow increased 4.7%.

Adjusted EBITDA for the fourth quarter of 2015 was $174 million, an increase of 1% compared with the fourth quarter of 2014. On a currency-neutral basis and excluding the impact of the increase in the inter-segment licensing fee rate, adjusted EBITDA increased 5%, reflecting higher sales volume.

OTHER ITEMS

-- The Company repurchased 2.2 million shares of common stock for $165 million during the fourth quarter of 2015. For the full-year 2015, the Company repurchased 7.9 million shares of common stock for $650 million. From January 1 through February 8, 2016, the Company repurchased an additional 1.6 million shares for $107 million.

-- The Company’s Board of Directors approved a $1 billion increase in the share repurchase authorization. Including the increase, the Company’s remaining share repurchase authorization totals $1.3 billion as of February 8, 2016.

-- Reported net interest expense in the fourth quarter of 2015 was $35 million, compared with $25 million in the fourth quarter of 2014, reflecting the $350 million 5.10% bond issued in September and the absence of a fixed-to-floating interest rate swap.

Balance Sheet Information as of December, 2015:

-- Cash and cash equivalents of $171 million, compared with $183 million at December 31, 2014

-- Vacation ownership contract receivables, net, of $2.7 billion, unchanged from December 31, 2014

-- Vacation ownership and other inventory of $1.3 billion, compared with $1.2 billion at December 31, 2014

-- Securitized vacation ownership debt of $2.1 billion, compared with $2.2 billion at December 31, 2014

-- Long-term debt of $3.1 billion, compared with $2.9 billion at December 31, 2014. The remaining borrowing capacity on the revolving credit facility, net of commercial paper borrowings, was $1.4 billion as of December 31, 2015, compared with $1.3 billion at December 31, 2014.

A schedule of debt is included in Table 5 of this press release.

OUTLOOK

Note to Editors: The guidance excludes possible future share repurchases, while analysts’ estimates often include share repurchases. This results in discrepancies between Company guidance and database consensus forecasts.

For the full year 2016, the Company provides the following guidance:

-- Revenues of approximately $5.800 - $5.950 billion.

-- Adjusted EBITDA of approximately $1.375 - $1.400 billion.

-- Adjusted EPS of approximately $5.46 - $5.60 based on a diluted share count of 116 million.

The Company will post guidance information on its website following the conference call.

Conference Call Information Wyndham Worldwide Corporation will hold a conference call with investors to discuss the Company’s results, outlook and guidance on Tuesday, February 9, 2016 at 8:30 a.m. ET. Listeners can access the webcast live through the company’s website at http://www.wyndhamworldwide.com/investors/ . The conference call may also be accessed by dialing 877-876-9177 and providing the pass code "WYNQ415." Listeners are urged to call at least 10 minutes prior to the scheduled start time. An archive of this webcast will be available on the website for approximately 90 days beginning at 12:00pm ET on February 9, 2016. A telephone replay will be available for approximately 10 days beginning at 12:00pm ET on February 9, 2016 at 800-723-0607.

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 and are helpful to investors as an additional tool for further understanding and assessing the Company’s ongoing core operating performance. Exclusion of items in our non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. A 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 and adjusted EPS to the most directly comparable GAAP measures because certain items cannot be reasonably estimated or predicted at this time. Any such items could be significant to the Company’s reported results.

About Wyndham Worldwide Corporation One of the world’s largest hospitality companies, Wyndham Worldwide (WYN ) provides a wide range of hospitality services and products through its global portfolio of world-renowned brands. The world’s largest hotel company based on the number of properties, Wyndham Hotel Group is home to many of the world’s best-known hotel brands, with over 7,800 franchised hotels and 678,000 hotel rooms worldwide. Wyndham Destination Network is the world’s largest provider of professionally managed, unique vacation accommodations with more than 112,000 vacation properties in over 100 countries, sending more than 13 million people annually to their desired destinations through its trusted, diverse network of brands. The industry and timeshare ownership market leader, Wyndham Vacation Ownership develops, markets, and sells vacation ownership interests and provides consumer financing to owners through its network of over 210 vacation ownership resorts serving approximately 897,000 owners throughout the United States, Canada, Mexico, the Caribbean, and the South Pacific. Based in Parsippany, NJ, Wyndham Worldwide employs approximately 38,000 associates globally. For more information, 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, cash flow, dividends, share repurchases 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 Annual Report on Form 10-K, filed with the SEC on February 13, 2015. Except for the Company’s ongoing obligations to disclose material information under the federal securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

                                                                                                                                                                                                                                                    Table 1
                                                                                                                                                                                                                                                    (1 of 2)
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
In addition to other measures, management evaluates the operating results of each of its reportable segments based upon net revenues and "EBITDA", which is defined as net income before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) 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 segments which when considered with GAAP measures, 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 the Company’s reportable segments, as well as reconcile EBITDA to Net income for the three months ended December 31, 2015 and 2014:
                                                      Three Months Ended December 31,
                                                      2015                                                                                                                 2014
                                                      Net Revenues                                               EBITDA                                                    Net Revenues                                               EBITDA
Hotel Group                                           $                                                   314    $                                                   94    $                                                   267    $        77
Destination Network                                                                                       310                                                        44                                                        311             2
Vacation Ownership                                                                                        706                                                        174                                                       668             172
Total Reportable Segments                                                                                 1,330                                                      312                                                       1,246           251
Corporate and Other (a)                                                                                   (19)                                                       (37)                                                      (15)            (36)
Total Company                                         $                                                   1,311  $                                                   275   $                                                   1,231  $        215
Reconciliation of EBITDA to Net income
                                                                                                                 Three Months Ended December 31,
                                                                                                                 2015                                                                                                                 2014
EBITDA                                                                                                           $                                                   275                                                              $        215
Depreciation and amortization                                                                                                                                        61                                                                        58
Interest expense                                                                                                                                                     37                                                                        29
Interest income                                                                                                                                                      (2)                                                                       (4)
Income before income taxes                                                                                                                                           179                                                                       132
Provision for income taxes                                                                                                                                           39                                                                        51
Net income                                                                                                       $                                                   140                                                              $        81
(a) Includes the elimination of transactions between segments.
The following tables summarize net revenues and adjusted EBITDA for the Company’s reportable segments for the three months ended December 31, 2015 and 2014 (for a description of adjustments by segment, see Table 7):
                                                      Three Months Ended December 31,
                                                      2015                                                                                                                 2014
                                                                                                                 Adjusted                                                                                                             Adjusted
                                                      Net Revenues                                               EBITDA                                                    Net Revenues                                               EBITDA
Hotel Group                                           $                                                   314    $                                                   93    $                                                   267    $        79
Destination Network                                                                                       310                                                        43                                                        311             39
Vacation Ownership                                                                                        706                                                        174                                                       668             172
Total Reportable Segments                                                                                 1,330                                                      310                                                       1,246           290
Corporate and Other                                                                                       (19)                                                       (37)                                                      (15)            (38)
Total Company                                         $                                                   1,311  $                                                   273   $                                                   1,231  $        252
                                                                                                                                                                  Table 1
                                                                                                                                                                  (2 of 2)
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
The following tables summarize net revenues and EBITDA for the Company’s reportable segments, as well as reconcile EBITDA to Net income for the twelve months ended December 31, 2015 and 2014:
                                       Twelve Months Ended December 31,
                                       2015                                                          2014
                                       Net Revenues                   EBITDA                         Net Revenues                   EBITDA
Hotel Group                            $              1,297           $              349             $              1,101           $              327
Destination Network                                   1,538                          367                            1,604                          335
Vacation Ownership                                    2,772                          687                            2,638                          660
Total Reportable Segments                             5,607                          1,403                          5,343                          1,322
Corporate and Other (a)                               (71)                           (137)                          (62)                           (141)
Total Company                          $              5,536           $              1,266           $              5,281           $              1,181
Reconciliation of EBITDA to Net income
                                                                      Twelve Months Ended December 31,
                                                                      2015                                                          2014
EBITDA                                                                $              1,266                                          $              1,181
Depreciation and amortization                                                        234                                                           233
Interest expense                                                                     125                                                           113
Interest income                                                                      (9)                                                           (10)
Income before income taxes                                                           916                                                           845
Provision for income taxes                                                           304                                                           316
Net income                                                            $              612                                            $              529
(a) Includes the elimination of transactions between segments.
The following tables summarize net revenues and adjusted EBITDA for the Company’s reportable segments for the twelve months ended December 31, 2015 and 2014 (for a description of adjustments by segment, see Table 7):
                                       Twelve Months Ended December 31,
                                       2015                                                          2014
                                                                      Adjusted                                                      Adjusted
                                       Net Revenues                   EBITDA                         Net Revenues                   EBITDA
Hotel Group                            $              1,297           $              376             $              1,101           $              340
Destination Network                                   1,538                          370                            1,604                          380
Vacation Ownership                                    2,772                          688                            2,638                          660
Total Reportable Segments                             5,607                          1,434                          5,343                          1,380
Corporate and Other                                   (71)                           (137)                          (62)                           (142)
Total Company                          $              5,536           $              1,297           $              5,281           $              1,238
                                                                                           Table 2
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
                                                  Three Months Ended      Twelve Months Ended
                                                  December 31,            December 31,
                                                  2015        2014        2015        2014
Net revenues
            Service and membership fees           $    562    $    508    $    2,519  $    2,431
            Vacation ownership interest sales          403         385         1,604       1,485
            Franchise fees                             157         151         674         632
            Consumer financing                         109         108         427         427
            Other                                      80          79          312         306
Net revenues                                           1,311       1,231       5,536       5,281
Expenses
            Operating                                  594         542         2,461       2,262
            Cost of vacation ownership interests       43          42          165         171
            Consumer financing interest                19          18          74          71
            Marketing and reservation                  189         188         813         802
            General and administrative                 199         189         761         755
            Loss on sale and asset impairments         -           27          7           35
            Restructuring                              (2)         12          6           11
            Depreciation and amortization              61          58          234         233
Total expenses                                         1,103       1,076       4,521       4,340
Operating income                                       208         155         1,015       941
Other (income)/expense, net                            (6)         (2)         (17)        (7)
Interest expense                                       37          29          125         113
Interest income                                        (2)         (4)         (9)         (10)
Income before income taxes                             179         132         916         845
Provision for income taxes                             39          51          304         316
Net income                                        $    140    $    81     $    612    $    529
Earnings per share
            Basic                                 $    1.22   $    0.66   $    5.18   $    4.22
            Diluted                                    1.21        0.65        5.14        4.18
Weighted average shares outstanding
            Basic                                      115         122         118         125
            Diluted                                    116         124         119         127
Note: For a description of adjustments to Net Income, see Table 8.
                                                                                                                                                         Table 3
                                                                                                                                                         (1 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
The following operating statistics are the drivers of our revenues and therefore provide an enhanced understanding of our businesses:
                                                                    Year             Q1               Q2               Q3               Q4               Full Year
Hotel Group (a)
        Number of Rooms                                             2015             667,400          668,500          671,900          678,000          N/A
                                                                    2014             646,900          650,200          655,300          660,800          N/A
                                                                    2013             631,800          635,100          638,300          645,400          N/A
                                                                    2012             609,300          608,300          618,100          627,400          N/A
        RevPAR                                                      2015           $ 32.84          $ 39.82          $ 43.34          $ 32.98          $ 37.26
                                                                    2014           $ 32.30          $ 40.11          $ 43.71          $ 34.06          $ 37.57
                                                                    2013           $ 31.05          $ 38.00          $ 41.78          $ 33.07          $ 36.00
                                                                    2012           $ 29.73          $ 37.23          $ 40.39          $ 31.86          $ 34.80
Destination Network
        Average Number of Members (in 000s)                         2015             3,822            3,831            3,835            3,836            3,831
                                                                    2014             3,727            3,748            3,777            3,808            3,765
                                                                    2013             3,668            3,686            3,711            3,728            3,698
                                                                    2012             3,684            3,670            3,672            3,670            3,674
        Exchange Revenue Per Member                                 2015           $ 194.06         $ 167.81         $ 163.38         $ 152.00         $ 169.29
                                                                    2014           $ 200.78         $ 179.17         $ 171.77         $ 157.24         $ 177.12
                                                                    2013           $ 210.96         $ 182.42         $ 169.95         $ 161.21         $ 181.02
                                                                    2012           $ 204.56         $ 177.07         $ 171.14         $ 165.86         $ 179.68
        Vacation Rental Transactions (in 000s) (a) (b)              2015             459              390              462              319              1,630
                                                                    2014             429              376              455              293              1,552
                                                                    2013             423              355              433              273              1,483
                                                                    2012             418              325              390              259              1,392
        Average Net Price Per Vacation Rental(a) (b)                2015           $ 361.20         $ 513.14         $ 642.00         $ 452.19         $ 494.92
                                                                    2014           $ 410.04         $ 577.13         $ 727.40         $ 492.25         $ 558.95
                                                                    2013           $ 392.64         $ 540.38         $ 677.81         $ 506.62         $ 532.11
                                                                    2012           $ 379.40         $ 524.40         $ 635.44         $ 484.69         $ 504.55
Vacation Ownership (a)
        Gross Vacation Ownership Interest (VOI) Sales (in 000s) (c) 2015           $ 390,000        $ 502,000        $ 565,000        $ 507,000        $ 1,965,000
                                                                    2014           $ 410,000        $ 496,000        $ 513,000        $ 470,000        $ 1,889,000
                                                                    2013           $ 384,000        $ 481,000        $ 536,000        $ 488,000        $ 1,889,000
                                                                    2012           $ 384,000        $ 460,000        $ 502,000        $ 435,000        $ 1,781,000
        Tours (in 000s) (d)                                         2015             168              206              227              200              801
                                                                    2014             170              208              225              191              794
                                                                    2013             163              206              225              195              789
                                                                    2012             148              186              207              183              724
        Volume Per Guest (VPG) (d)                                  2015           $ 2,177          $ 2,353          $ 2,354          $ 2,390          $ 2,326
                                                                    2014           $ 2,272          $ 2,280          $ 2,158          $ 2,336          $ 2,257
                                                                    2013           $ 2,211          $ 2,256          $ 2,278          $ 2,370          $ 2,281
                                                                    2012           $ 2,414          $ 2,361          $ 2,315          $ 2,225          $ 2,324
Note: Full year amounts may not add across due to rounding.
(a)     Includes the impact of acquisitions/dispositions from the acquisition/disposition dates forward. Therefore, the operating statistics are not presented on a comparable basis.
(b)     The destination network operating statistics excluding our U.K.-based camping business sold in Q4 2014 are as follows:
                                                                    Year             Q1               Q2               Q3               Q4               Full Year
        Vacation Rental Transactions (in 000s)                      2014             429              367              431              292              1,518
        Average Net Price Per Vacation Rental                       2014           $ 410.02         $ 578.02         $ 700.56         $ 492.64         $ 548.93
(c)     Includes Gross VOI sales under the Company’s Wyndham Asset Affiliate Model (WAAM) Just-in-Time beginning in the second quarter of 2012 (see Table 9 for a reconciliation of Gross VOI sales to vacation ownership interest sales).
(d)     Includes the impact of WAAM Just-in-Time related tours beginning in the second quarter of 2012.
                          ADDITIONAL DATA
                                                                    Year             Q1               Q2               Q3               Q4               Full Year
Hotel Group
        Number of Properties                                        2015             7,670            7,700            7,760            7,810            N/A
                                                                    2014             7,500            7,540            7,590            7,650            N/A
                                                                    2013             7,380            7,410            7,440            7,490            N/A
                                                                    2012             7,150            7,170            7,260            7,340            N/A
Vacation Ownership
        Provision for Loan Losses (in 000s) (*)                     2015           $ 46,000         $ 60,000         $ 78,000         $ 64,000         $ 248,000
                                                                    2014           $ 60,000         $ 70,000         $ 70,000         $ 60,000         $ 260,000
                                                                    2013           $ 84,000         $ 90,000         $ 102,000        $ 73,000         $ 349,000
                                                                    2012           $ 96,000         $ 100,000        $ 124,000        $ 89,000         $ 409,000
Note: Full year amounts may not add across due to rounding.
(*)     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.

Table 3 (2 of 2)

Wyndham Worldwide Corporation OPERATING STATISTICS

GLOSSARY OF TERMS

Hotel Group

Number of Rooms: Represents the number of rooms at hotel group properties at the end of the period which are either (i) under franchise and/or management agreements, or company owned and (ii) properties under affiliation agreements for which the Company receives a fee for reservation and/or other services provided.

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.

Destination Network

Average Number of Members: Represents members in our vacation exchange programs who paid annual membership dues as of the end of the period or who are within the allowed grace period. For additional fees, such participants are entitled to exchange intervals for intervals at other properties affiliated with the Company’s 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 one of our vacation brands. 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 WAAM 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.

Tours: Represents the number of tours taken by guests in our efforts to sell VOIs.

Volume per Guest (VPG): Represents Gross VOI sales (excluding tele-sales upgrades, which are non-tour upgrade sales) divided by the number of tours. The Company has 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 2012-2015.

General

Constant Currency: Represents a comparison eliminating the effects of foreign exchange rate fluctuations between periods (foreign currency translation).

Currency-Neutral: Represents a comparison eliminating the effects of foreign exchange rate fluctuations between periods (foreign currency translation) and the impact caused by any foreign exchange related activities (i.e., hedges, balance sheet remeasurements and/or adjustments).

                                                                                                                                                       Table 4
Wyndham Worldwide Corporation
REVENUE DETAIL BY REPORTABLE SEGMENT
(In millions)
                                                                      2015                                        2014
                                                                           Q1      Q2      Q3      Q4      Year        Q1      Q2      Q3      Q4      Year
Hotel Group
         Royalties and Franchise Fees                                 $    74    $ 96    $ 103   $ 87    $ 361    $    68    $ 88    $ 100   $ 83    $ 339
         Marketing, Reservation and Wyndham Rewards Revenues (a)           96      108     112     92      407         76      101     117     91      385
         Hotel Management Reimbursable Revenues (b)                        61      71      73      68      273         37      39      39      39      154
         Intersegment Trademark Fees                                       12      15      16      15      57          9       11      11      10      41
         Owned Hotel Revenues                                              25      20      16      19      79          24      20      18      20      81
         Ancillary Revenues (c)                                            24      24      37      33      120         23      24      30      24      101
         Total Hotel Group                                                 292     334     357     314     1,297       237     283     315     267     1,101
Destination Network
         Exchange Revenues                                                 185     161     157     146     649         187     168     162     150     667
         Rental Revenues                                                   166     200     296     144     807         176     217     331     144     868
         Ancillary Revenues (d)                                            18      22      23      20      82          16      17      19      17      69
         Total Destination Network                                         369     383     476     310     1,538       379     402     512     311     1,604
Vacation Ownership
         Vacation Ownership Interest Sales                                 336     417     448     403     1,604       303     382     415     385     1,485
         Consumer Financing                                                104     105     108     109     427         105     106     108     108     427
         Property Management Fees and Reimbursable Revenues                153     149     159     155     615         143     145     150     142     581
         WAAM Fee-for-Service Commissions                                  12      19      23      28      83          33      30      18      16      98
         Ancillary Revenues (e)                                            12      9       12      11      43          9       10      13      17      47
         Total Vacation Ownership                                          617     699     750     706     2,772       593     673     704     668     2,638
Total Reportable Segments                                             $    1,278 $ 1,416 $ 1,583 $ 1,330 $ 5,607  $    1,209 $ 1,358 $ 1,531 $ 1,246 $ 5,343
                                                                      2013                                        2012
                                                                           Q1      Q2      Q3      Q4      Year        Q1      Q2      Q3      Q4      Year
Hotel Group
         Royalties and Franchise Fees                                 $    64    $ 79    $ 91    $ 75    $ 309    $    62    $ 80    $ 88    $ 71    $ 301
         Marketing, Reservation and Wyndham Rewards Revenues (a)           73      92      118     83      365         68      99      98      80      345
         Hotel Management Reimbursable Revenues (b)                        25      38      37      35      135         21      22      25      23      91
         Intersegment Trademark Fees                                       8       10      11      10      39          8       9       9       8       34
         Owned Hotel Revenues                                              26      20      18      19      84          8       8       7       18      41
         Ancillary Revenues (c)                                            26      23      22      23      95          18      15      22      23      78
         Total Hotel Group                                                 222     262     297     245     1,027       185     233     249     223     890
Destination Network
         Exchange Revenues                                                 193     168     158     150     669         188     162     157     153     660
         Rental Revenues                                                   166     192     293     138     789         159     170     248     125     702
         Ancillary Revenues (d)                                            15      16      19      17      68          14      16      15      15      60
         Total Destination Network                                         374     376     470     305     1,526       361     348     420     293     1,422
Vacation Ownership
         Vacation Ownership Interest Sales                                 263     347     384     384     1,379       271     342     373     337     1,323
         Consumer Financing                                                105     106     107     108     426         103     102     106     110     421
         Property Management Fees                                          146     141     143     137     567         110     108     117     125     460
         WAAM Fee-for-Service Commissions                                  24      30      33      20      107         12      11      4       6       33
         Ancillary Revenues (e)                                            11      6       10      9       36          5       7       8       12      32
         Total Vacation Ownership                                          549     630     677     658     2,515       501     570     608     590     2,269
Total Reportable Segments                                             $    1,145 $ 1,268 $ 1,444 $ 1,208 $ 5,068  $    1,047 $ 1,151 $ 1,277 $ 1,106 $ 4,581
Note: Full year amounts may not add across due to rounding.
(a)      Marketing and reservation revenues represent fees the Company receives 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 the Company receives relating to its loyalty program.
(b)      Primarily represents payroll costs in the hotel management business that the Company pays on behalf of property owners and for which it is reimbursed by the property owners. During 2014, reimbursable revenues of $2 million in each of Q1, Q2 and Q3 and $1 million in Q4 which were charged to the Company’s vacation ownership business and were eliminated in consolidation. During 2013, such amounts include reimbursable revenues of $1 million, $3 million and $2 million, in Q2, Q3 and Q4 respectively, which were charged to the Company’s vacation ownership business and were eliminated in consolidation.
(c)      Primarily includes additional services provided to franchisees and managed properties and fees related to our co-branded credit card program.
(d)      Primarily includes fees generated from programs with affiliated resorts and homeowners.
(e)      Primarily includes revenues associated with bonus points/credits that are provided as purchase incentives on VOI sales and fees generated from other non-core operations.
                                                                                                                                                                                                                                                                       Table 5
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
                                                             December 31,                                 September 30,                                June 30,                                     March 31,                                    December 31,
                                                             2015                                         2015                                         2015                                         2015                                         2014
Securitized vacation ownership debt (a)
Term notes                                                   $                     1,891                  $                     1,843                  $                     1,841                  $                     2,090                  $                     1,962
Bank conduit facility (b)                                                          239                                          267                                          253                                          98                                           203
Total securitized vacation ownership debt (c)                                      2,130                                        2,110                                        2,094                                        2,188                                        2,165
Less: Current portion of securitized vacation ownership debt                       209                                          210                                          211                                          217                                          214
Long-term securitized vacation ownership debt                $                     1,921                  $                     1,900                  $                     1,883                  $                     1,971                  $                     1,951
Debt:
Revolving credit facility (due July 2020) (d)                $                     7                      $                     20                     $                     23                     $                     14                     $                     25
Commercial paper (e)                                                               109                                          87                                           476                                          346                                          189
$315 million 6.00% senior unsecured notes (due December 2016)                      316                                          316                                          317                                          317                                          317
$300 million 2.95% senior unsecured notes (due March 2017)                         299                                          299                                          299                                          299                                          299
$14 million 5.75% senior unsecured notes (due February 2018)                       14                                           14                                           14                                           14                                           14
$450 million 2.50% senior unsecured notes (due March 2018)                         449                                          448                                          448                                          448                                          448
$40 million 7.375% senior unsecured notes (due March 2020)                         40                                           40                                           40                                           40                                           40
$250 million 5.625% senior unsecured notes (due March 2021)                        247                                          247                                          247                                          247                                          247
$650 million 4.25% senior unsecured notes (due March 2022)                         648                                          648                                          648                                          650                                          648
$400 million 3.90% senior unsecured notes (due March 2023)                         408                                          409                                          409                                          418                                          410
$350 million 5.10% senior unsecured notes (due October 2025)                       338                                          338                                          -                                            -                                            -
Capital leases                                                                     153                                          158                                          161                                          161                                          170
Other                                                                              50                                           49                                           70                                           70                                           81
Total long-term debt                                                               3,078                                        3,073                                        3,152                                        3,024                                        2,888
Less: Current portion of long-term debt                                            44                                           44                                           52                                           53                                           47
Long-term debt                                               $                     3,034                  $                     3,029                  $                     3,100                  $                     2,971                  $                     2,841
(a)  The Company’s vacation ownership contract receivables are securitized through bankruptcy-remote special purpose entities ("SPEs") 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 non-recourse debt that is securitized through the SPEs is legally not a liability of the Company and thus, 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 August 2017 and borrowing capacity of $650 million. As of December 31, 2015, this facility had a remaining borrowing capacity of $411 million.
(c)  This debt is collateralized by $2,576 million, $2,582 million, $2,558 million, $2,609 million, and $2,629 million of underlying vacation ownership contract receivables and related assets as of December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014.
(d)  Represents a $1.5 billion revolving credit facility that expires in July 2020. As of December 31, 2015, the Company had $1 million of outstanding letters of credit. After considering outstanding commercial paper borrowings of $109 million, the remaining borrowing capacity was $1.4 billion as of December 31, 2015.
(e)  Represents commercial paper programs of $1.25 billion with a remaining borrowing capacity of $1.1 billion as of December 31, 2015.
                                                                                                                       Table 6
                                                                                                                       (1 of 2)
Wyndham Worldwide Corporation
BRAND SYSTEM DETAILS
                                           As of and For the Three Months Ended December 31, 2015
                                                                                                                       Average Revenue
                                           Number of                             Average            Average Daily      Per Available
Brand                                      Properties         Number of Rooms    Occupancy Rate     Rate (ADR)         Room (RevPAR)
Hotel Group
Super 8                                    2,631              168,438            50.9%              $48.82             $24.86
Days Inn                                   1,788              142,870            46.0%              $64.04             $29.43
Ramada                                     839                118,132            50.2%              $72.84             $36.54
Wyndham Hotels and Resorts                 225                48,753             56.6%              $108.79            $61.57
Howard Johnson                             393                42,888             46.7%              $60.92             $28.44
Baymont                                    410                32,667             46.8%              $66.11             $30.92
Travelodge                                 411                30,188             44.6%              $62.65             $27.93
Microtel Inns & Suites by Wyndham          332                23,941             52.5%              $67.29             $35.30
Knights Inn                                386                23,560             41.7%              $47.21             $19.71
TRYP by Wyndham                            121                17,355             61.0%              $78.94             $48.12
Wingate by Wyndham                         151                13,780             57.0%              $87.38             $49.77
Hawthorn Suites by Wyndham                 102                10,174             60.8%              $80.45             $48.89
Dolce                                      23                 5,296              49.5%              $150.61            $74.59
                   Total Hotel Group       7,812              678,042            49.6%              $66.46             $32.98
Vacation Ownership
Wyndham Vacation Ownership resorts         213                24,329             N/A                N/A                N/A
                   Total Wyndham Worldwide 8,025              702,371
                                           As of and For the Three Months Ended December 31, 2014
                                                                                                                       Average Revenue
                                           Number of                             Average            Average Daily      Per Available
Brand                                      Properties         Number of Rooms    Occupancy Rate     Rate (ADR)         Room (RevPAR)
Hotel Group
Super 8                                    2,510              160,847            53.8%              $48.07             $25.85
Days Inn                                   1,794              145,078            45.7%              $63.86             $29.18
Ramada                                     837                115,923            51.1%              $78.04             $39.86
Howard Johnson                             429                45,919             46.7%              $62.82             $29.34
Wyndham Hotels and Resorts                 195                43,865             58.0%              $116.50            $67.53
Travelodge                                 421                30,989             45.0%              $63.71             $28.68
Baymont                                    369                29,727             47.1%              $64.64             $30.42
Knights Inn                                398                24,832             42.1%              $45.61             $19.19
Microtel Inns & Suites by Wyndham          323                23,138             56.1%              $67.28             $37.74
TRYP by Wyndham                            119                16,965             59.5%              $84.73             $50.44
Wingate by Wyndham                         153                13,923             58.2%              $84.83             $49.35
Hawthorn Suites by Wyndham                 97                 9,620              63.1%              $75.65             $47.72
                   Total Hotel Group       7,645              660,826            50.6%              $67.27             $34.06
Vacation Ownership
Wyndham Vacation Ownership resorts         203                23,644             N/A                N/A                N/A
                   Total Wyndham Worldwide 7,848              684,470
Note: A glossary of terms is included in Table 3 (2 of 2); RevPAR may not recalculate by multiplying average occupancy rate by ADR due to rounding.
                                                                                                                       Table 6
                                                                                                                       (2 of 2)
Wyndham Worldwide Corporation
BRAND SYSTEM DETAILS
                                           As of and For the Year Ended December 31, 2015
                                                                                                                       Average Revenue
                                           Number of                             Average            Average Daily      Per Available
Brand                                      Properties         Number of Rooms    Occupancy Rate     Rate (ADR)         Room (RevPAR)
Hotel Group
Super 8                                    2,631              168,438            57.0%              $50.51             $28.81
Days Inn                                   1,788              142,870            50.9%              $67.26             $34.22
Ramada                                     839                118,132            54.2%              $75.08             $40.67
Wyndham Hotels and Resorts                 225                48,753             60.5%              $110.76            $66.96
Howard Johnson                             393                42,888             50.0%              $62.45             $31.24
Baymont                                    410                32,667             52.5%              $68.50             $35.95
Travelodge                                 411                30,188             50.8%              $67.71             $34.39
Microtel Inns & Suites by Wyndham          332                23,941             57.9%              $69.23             $40.08
Knights Inn                                386                23,560             45.7%              $48.26             $22.03
TRYP by Wyndham                            121                17,355             62.0%              $80.39             $49.84
Wingate by Wyndham                         151                13,780             63.3%              $89.17             $56.43
Hawthorn Suites by Wyndham                 102                10,174             66.5%              $81.00             $53.89
Dolce                                      23                 5,296              55.4%              $150.03            $83.08
                   Total Hotel Group       7,812              678,042            54.5%              $68.39             $37.26
Vacation Ownership
Wyndham Vacation Ownership resorts         213                24,329             N/A                N/A                N/A
                   Total Wyndham Worldwide 8,025              702,371
                                           As of and For the Year Ended December 31, 2014
                                                                                                                       Average Revenue
                                           Number of                             Average            Average Daily      Per Available
Brand                                      Properties         Number of Rooms    Occupancy Rate     Rate (ADR)         Room (RevPAR)
Hotel Group
Super 8                                    2,510              160,847            57.2%              $50.86             $29.09
Days Inn                                   1,794              145,078            51.0%              $65.68             $33.48
Ramada                                     837                115,923            54.2%              $79.70             $43.22
Howard Johnson                             429                45,919             48.8%              $63.46             $30.96
Wyndham Hotels and Resorts                 195                43,865             61.8%              $115.17            $71.14
Travelodge                                 421                30,989             51.1%              $67.75             $34.62
Baymont                                    369                29,727             52.5%              $65.75             $34.51
Knights Inn                                398                24,832             44.9%              $46.67             $20.94
Microtel Inns & Suites by Wyndham          323                23,138             59.8%              $67.26             $40.23
TRYP by Wyndham                            119                16,965             61.9%              $90.45             $55.97
Wingate by Wyndham                         153                13,923             63.6%              $86.61             $55.05
Hawthorn Suites by Wyndham                 97                 9,620              65.5%              $76.59             $50.19
                   Total Hotel Group       7,645              660,826            54.5%              $68.94             $37.57
Vacation Ownership
Wyndham Vacation Ownership resorts         203                23,644             N/A                N/A                N/A
                   Total Wyndham Worldwide 7,848              684,470
Note: A glossary of terms is included in Table 3 (2 of 2); RevPAR may not recalculate by multiplying average occupancy rate by ADR due to rounding.
                                                                                                                                                          Table 7
                                                                                                                                                          (1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION
(In millions)
                                                      Reported       Legacy           Acquisition  Restructuring  Asset           Contract         Adjusted
Three months ended March 31, 2015      Net Revenues   EBITDA         Adjustments(b)   Costs (c)    Costs (d)      Impairment (e)  Termination (f)  EBITDA
Hotel Group                            $      292     $      76      $       -        $      3     $      -       $       -       $       -        $      79
Destination Network                           369            105             -               -            (1)             -               -               104
Vacation Ownership                            617            130             -               -            -               -               -               130
Total Reportable Segments                     1,278          311             -               3            (1)             -               -               313
Corporate and Other (a)                       (16)           (34)            -               -            -               -               -               (34)
Total Company                          $      1,262   $      277     $       -        $      3     $      (1)     $       -       $       -        $      279
Three months ended June 30, 2015
Hotel Group                            $      334     $      96      $       -        $      1     $      -       $       -       $       -        $      97
Destination Network                           383            84              -               -            -               -               -               84
Vacation Ownership                            699            182             -               -            -               -               -               182
Total Reportable Segments                     1,416          362             -               1            -               -               -               363
Corporate and Other (a)                       (18)           (30)            (1)             -            -               -               -               (31)
Total Company                          $      1,398   $      332     $       (1)      $      1     $      -       $       -       $       -        $      332
Three months ended September 30, 2015
Hotel Group                            $      357     $      83      $       -        $      -     $      4       $       7       $       14       $      108
Destination Network                           476            134             -               -            3               -               -               137
Vacation Ownership                            750            200             -               -            1               -               -               201
Total Reportable Segments                     1,583          417             -               -            8               7               14              446
Corporate and Other (a)                       (19)           (35)            1               -            -               -               -               (34)
Total Company                          $      1,564   $      382     $       1        $      -     $      8       $       7       $       14       $      412
Three months ended December 31, 2015
Hotel Group                            $      314     $      94      $       -        $      -     $      (1)     $       -       $       -        $      93
Destination Network                           310            44              -               -            (1)             -               -               43
Vacation Ownership                            706            174             -               -            -               -               -               174
Total Reportable Segments                     1,330          312             -               -            (2)             -               -               310
Corporate and Other (a)                       (19)           (37)            -               -            -               -               -               (37)
Total Company                          $      1,311   $      275     $       -        $      -     $      (2)     $       -       $       -        $      273
Twelve months ended December 31, 2015
Hotel Group                            $      1,297   $      349     $       -        $      3     $      3       $       7       $       14       $      376
Destination Network                           1,538          367             -               1            2               -               -               370
Vacation Ownership                            2,772          687             -               -            1               -               -               688
Total Reportable Segments                     5,607          1,403           -               4            6               7               14              1,434
Corporate and Other (a)                       (71)           (137)           -               -            -               -               -               (137)
Total Company                          $      5,536   $      1,266   $       -        $      4     $      6       $       7       $       14       $      1,297
Note: The sum of the quarters may not agree to the twelve months ended December 31, 2015 due to rounding.
(a)  Includes the elimination of transactions between segments.
(b)  Relates to the net (benefit)/expense from the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.
(c)  Relates primarily to costs incurred in connection with the acquisition of Dolce Hotels and Resorts (January 2015).
(d)  Relates to costs incurred as a result of various organizational realignment initiatives and the reversal of a portion of restructuring reserves that were established in prior periods.
(e)  Relates to a non-cash impairment charge related to the write-down of terminated in-process technology projects resulting from the Company’s decision to outsource its reservation system to a third-party provider.
(f)  Relates to costs associated with the anticipated termination of a management contract.
                                                                                                                                                                         Table 7
                                                                                                                                                                         (2 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION
(In millions)
                                                                     Executive Venezuela                                        Loss on Sale
                                                      Reported       Departure Currency         VAT              Restructuring  and Asset        Legacy           Adjusted
Three months ended March 31, 2014      Net Revenues   EBITDA         Costs     Devaluation (b)  Adjustment (c)   Costs (d)      Impairments (e)  Adjustments (f)  EBITDA
Hotel Group                            $      237     $      64      $      4  $       -        $       -        $      -       $       -        $       -        $      68
Destination Network                           379            85             -          10               -               -               -                -               95
Vacation Ownership                            593            115            -          -                -               -               -                -               115
Total Reportable Segments                     1,209          264            4          10               -               -               -                -               278
Corporate and Other (a)                       (16)           (34)           -          -                -               -               -                -               (34)
Total Company                          $      1,193   $      230     $      4  $       10       $       -        $      -       $       -        $       -        $      244
Three months ended June 30, 2014
Hotel Group                            $      283     $      87      $      -  $       -        $       -        $      -       $       -        $       -        $      87
Destination Network                           402            89             -          -                (2)             -               -                -               87
Vacation Ownership                            673            185            -          -                -               -               -                -               185
Total Reportable Segments                     1,358          361            -          -                (2)             -               -                -               359
Corporate and Other (a)                       (15)           (35)           -          -                -               -               -                -               (35)
Total Company                          $      1,343   $      326     $      -  $       -        $       (2)      $      -       $       -        $       -        $      324
Three months ended September 30, 2014
Hotel Group                            $      315     $      100     $      -  $       -        $       -        $      (1)     $       8        $       -        $      107
Destination Network                           512            159            -          -                -               -               -                -               159
Vacation Ownership                            704            188            -          -                -               -               -                -               188
Total Reportable Segments                     1,531          447            -          -                -               (1)             8                -               454
Corporate and Other (a)                       (17)           (36)           -          -                -               -               -                -               (36)
Total Company                          $      1,514   $      411     $      -  $       -        $       -        $      (1)     $       8        $       -        $      418
Three months ended December 31, 2014
Hotel Group                            $      267     $      77      $      -  $       -        $       -        $      2       $       -        $       -        $      79
Destination Network                           311            2              -          -                -               10              27               -               39
Vacation Ownership                            668            172            -          -                -               -               -                -               172
Total Reportable Segments                     1,246          251            -          -                -               12              27               -               290
Corporate and Other (a)                       (15)           (36)           -          -                -               -               -                (2)             (38)
Total Company                          $      1,231   $      215     $      -  $       -        $       -        $      12      $       27       $       (2)      $      252
Twelve months ended December 31, 2014
Hotel Group                            $      1,101   $      327     $      4  $       -        $       -        $      1       $       8        $       -        $      340
Destination Network                           1,604          335            -          10               (2)             10              27               -               380
Vacation Ownership                            2,638          660            -          -                -               -               -                -               660
Total Reportable Segments                     5,343          1,322          4          10               (2)             11              35               -               1,380
Corporate and Other (a)                       (62)           (141)          -          -                -               -               -                (1)             (142)
Total Company                          $      5,281   $      1,181   $      4  $       10       $       (2)      $      11      $       35       $       (1)      $      1,238
Note: The sum of the quarters may not agree to the twelve months ended December 31, 2014 due to rounding.
(a)  Includes the elimination of transactions between segments.
(b)  Represents the devaluation of the official exchange rate of Venezuela.
(c)  Reversal of a reserve for value-added taxes.
(d)  Relates to (i) the reversal of a portion of a restructuring reserve established during the fourth quarter of 2013 and (ii) costs incurred as a result of various organizational realignment initiatives by the Company.
(e)  Relates to (i) a loss on the sale of a business and a write-down of an equity investment at the Company’s destination network business and (ii) a write-down of an investment in a joint venture at the Company’s hotel group business.
(f)  Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.
                                                                                                                                                                                                                           Table 8
                                                                                                                                                                                                                           (1 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
                                                                     Three Months Ended December 31, 2015
                                                                                                           Restructuring                             Foreign Tax                            As Adjusted
                                                                     As Reported                           Costs(a)                                  Credit  (c)                            non-GAAP
Net revenues
                               Service and membership fees           $                              562    $                                         $                                      $                              562
                               Vacation ownership interest sales                                    403                                                                                                                    403
                               Franchise fees                                                       157                                                                                                                    157
                               Consumer financing                                                   109                                                                                                                    109
                               Other                                                                80                                                                                                                     80
Net revenues                                                                                        1,311                                 -                                         -                                      1,311
Expenses
                               Operating                                                            594                                                                                                                    594
                               Cost of vacation ownership interests                                 43                                                                                                                     43
                               Consumer financing interest                                          19                                                                                                                     19
                               Marketing and reservation                                            189                                                                                                                    189
                               General and administrative                                           199                                                                                                                    199
                               Restructuring                                                        (2)                                   2                                                                                -
                               Depreciation and amortization                                        61                                                                                                                     61
Total expenses                                                                                      1,103                                 2                                         -                                      1,105
Operating income                                                                                    208                                   (2)                                       -                                      206
Other (income)/expense, net                                                                         (6)                                                                                                                    (6)
Interest expense                                                                                    37                                                                                                                     37
Interest income                                                                                     (2)                                                                                                                    (2)
Income before income taxes                                                                          179                                   (2)                                       -                                      177
Provision for income taxes                                                                          39                                    (1)    (b)                                26                                     64
Net income                                                           $                              140    $                              (1)        $                              (26)    $                              113
Earnings per share
                               Basic                                 $                              1.22   $                              (0.01)     $                              (0.22)  $                              0.99
                               Diluted                                                              1.21                                  (0.01)                                    (0.22)                                 0.98
Weighted average shares outstanding
                               Basic                                                                115                                   115                                       115                                    115
                               Diluted                                                              116                                   116                                       116                                    116
The above table reconciles certain non-GAAP financial measures.  The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the line items of the income statement in order to assist investors’ understanding of the overall impact of such adjustments.  This non-GAAP reconciliation table should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.
Note: EPS amounts may not add due to rounding.
(a)                            Relates to a reversal of a portion of restructuring reserves that were established in prior periods.
(b)                            Relates to the tax effect of the adjustment.
(c)                            Relates to the release of a valuation allowance on foreign tax credits.
                                                                                                                                                                                                                                                                                                                                                Table 8
                                                                                                                                                                                                                                                                                                                                                (2 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
                                                          Twelve Months Ended December 31, 2015
                                                                                                   Acquisition                                 Restructuring                               Asset                                       Contract                                    Foreign Tax                              As Adjusted
                                                          As Reported                              Costs(a)                                    Costs (c)                                   Impairment (e)                              Termination (f)                             Credit (g)                               non-GAAP
Net revenues
                    Service and membership fees           $                   2,519                $                                           $                                           $                                           $                                           $                                        $                   2,519
                    Vacation ownership interest sales                         1,604                                                                                                                                                                                                                                                             1,604
                    Franchise fees                                            674                                                                                                                                                                                                                                                               674
                    Consumer financing                                        427                                                                                                                                                                                                                                                               427
                    Other                                                     312                                                                                                                                                                                                                                                               312
Net revenues                                                                  5,536                                    -                                           -                                           -                                           -                                           -                                        5,536
Expenses
                    Operating                                                 2,461                                    (4)                                                                                                                                 (14)                                                                                 2,443
                    Cost of vacation ownership interests                      165                                                                                                                                                                                                                                                               165
                    Consumer financing interest                               74                                                                                                                                                                                                                                                                74
                    Marketing and reservation                                 813                                                                                                                                                                                                                                                               813
                    General and administrative                                761                                                                                                                                                                                                                                                               761
                    Asset impairment                                          7                                                                                                                                (7)                                                                                                                              -
                    Restructuring                                             6                                                                                    (6)                                                                                                                                                                          -
                    Depreciation and amortization                             234                                                                                                                                                                                                                                                               234
Total expenses                                                                4,521                                    (4)                                         (6)                                         (7)                                         (14)                                        -                                        4,490
Operating income                                                              1,015                                    4                                           6                                           7                                           14                                          -                                        1,046
Other (income)/expense, net                                                   (17)                                                                                                                                                                                                                                                              (17)
Interest expense                                                              125                                                                                                                                                                                                                                                               125
Interest income                                                               (9)                                                                                                                                                                                                                                                               (9)
Income before income taxes                                                    916                                      4                                           6                                           7                                           14                                          -                                        947
Provision for income taxes                                                    304                                      (1)                 (b)                     2                   (d)                     2                   (d)                     6                   (d)                     26                                       339
Net income                                                $                   612                  $                   5                       $                   4                       $                   5                       $                   8                       $                   (26)                 $                   608
Earnings per share
                    Basic                                 $                   5.18                 $                   0.04                    $                   0.04                    $                   0.04                    $                   0.07                    $                   (0.22)               $                   5.15
                    Diluted                                                   5.14                                     0.04                                        0.04                                        0.04                                        0.07                                        (0.22)                                   5.11
Weighted average shares outstanding
                    Basic                                                     118                                      118                                         118                                         118                                         118                                         118                                      118
                    Diluted                                                   119                                      119                                         119                                         119                                         119                                         119                                      119
The above table reconciles certain non-GAAP financial measures.  The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the line items of the income statement in order to assist investors’ understanding of the overall impact of such adjustments.  This non-GAAP reconciliation table should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.
Note: EPS amounts may not add due to rounding.
(a)                 Relates primarily to costs incurred in connection with the acquisition of Dolce Hotels and Resorts (January 2015) at the Company’s hotel group business.
(b)                 Relates to (i) the tax effect of the adjustment and (ii) a valuation allowance established in connection with the acquisition of Dolce Hotels and Resorts.
(c)                 Relates to costs incurred as a result of various organizational realignment initiatives across the Company and the reversal of a portion of restructuring reserves that were established in prior periods.
(d)                 Relates to the tax effect of the adjustment.
(e)                 Relates to a non-cash impairment charge at the Company’s hotel group business related to the write-down of terminated in-process technology projects resulting from the decision to outsource the reservation system to a third-party provider.
(f)                 Relates to costs associated with the anticipated termination of a management contract within the Company’s hotel group business.
(g)                 Relates to the release of a valuation allowance on foreign tax credits.
                                                                                                                                                                                                                                                         Table 8
                                                                                                                                                                                                                                                         (3 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
                                                                Three Months Ended December 31, 2014
                                                                                                                                                                                            Loss on Sale
                                                                                                 Legacy                                                  Restructuring                      and Asset                          As Adjusted
                                                                As Reported                      Adjustments(a)                                          Costs(c)                           Impairment (d)                     non-GAAP
Net revenues
                          Service fees and membership           $                         508    $                                                       $                                  $                                  $                         508
                          Vacation ownership interest sales                               385                                                                                                                                                            385
                          Franchise fees                                                  151                                                                                                                                                            151
                          Consumer financing                                              108                                                                                                                                                            108
                          Other                                                           79                                                                                                                                                             79
Net revenues                                                                              1,231                            -                                                       -                                  -                                  1,231
Expenses
                          Operating                                                       542                                                                                                                                                            542
                          Cost of vacation ownership interests                            42                                                                                                                                                             42
                          Consumer financing interest                                     18                                                                                                                                                             18
                          Marketing and reservation                                       188                                                                                                                                                            188
                          General and administrative                                      189                              2                                                                                                                             191
                          Loss on sale and asset impairment                               27                                                                                                                          (27)                               -
                          Restructuring                                                   12                                                                                       (12)                                                                  -
                          Depreciation and amortization                                   58                                                                                                                                                             58
Total expenses                                                                            1,076                            2                                                       (12)                               (27)                               1,039
Operating income                                                                          155                              (2)                                                     12                                 27                                 192
Other (income)/expense, net                                                               (2)                                                                                                                                                            (2)
Interest expense                                                                          29                                                                                                                                                             29
Interest income                                                                           (4)                                                                                                                                                            (4)
Income before income taxes                                                                132                              (2)                                                     12                                 27                                 169
Provision for income taxes                                                                51                               (1)                       (b)                           4    (b)                           3    (b)                           57
Net income                                                      $                         81     $                         (1)                           $                         8        $                         24       $                         112
Earnings per share
                          Basic                                 $                         0.66   $                         (0.01)                        $                         0.07     $                         0.20     $                         0.91
                          Diluted                                                         0.65                             (0.01)                                                  0.06                               0.20                               0.90
Weighted average shares outstanding
                          Basic                                                           122                              122                                                     122                                122                                122
                          Diluted                                                         124                              124                                                     124                                124                                124
The above table reconciles certain non-GAAP financial measures.  The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the line items of the income statement in order to assist investors’ understanding of the overall impact of such adjustments.  This non-GAAP reconciliation table should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.
Note: EPS amounts may not add due to rounding.
(a)                       Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.
(b)                       Relates to the tax effect of the adjustment.
(c)                       Relates to costs incurred as a result of organizational realignment initiatives at the Company’s hotel group and destination network businesses.
(d)                       Relates to a loss on the sale of a business and a write-down of an equity investment at the Company’s destination network business.
                                                                                                                                                                                                                                                                                                                                                               Table 8
                                                                                                                                                                                                                                                                                                                                                               (4 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
                                                        Twelve Months Ended December 31, 2014
                                                                                             Executive                               Venezuela                                                                                                                                                       Loss on sale
                                                                                             Departure                               Currency                                Legacy                                  VAT                                     Restructuring                           and Asset                               As Adjusted
                                                        As Reported                          Costs(a)                                Devaluation(c)                          Adjustments (d)                         Adjustment (f)                          Costs (g)                               Impairments (h)                         non-GAAP
Net revenues
                  Service fees and membership           $                 2,431              $                                       $                                       $                                       $                                       $                                       $                                       $                 2,431
                  Vacation ownership interest sales                       1,485                                                                                                                                                                                                                                                                                1,485
                  Franchise fees                                          632                                                                                                                                                                                                                                                                                  632
                  Consumer financing                                      427                                                                                                                                                                                                                                                                                  427
                  Other                                                   306                                                                                                                                                                                                                                                                                  306
Net revenues                                                              5,281                                -                                       -                                       -                                       -                                       -                                       -                                       5,281
Expenses
                  Operating                                               2,262                                                                        (10)                                                                                                                                                                                                    2,252
                  Cost of vacation ownership interests                    171                                                                                                                                                                                                                                                                                  171
                  Consumer financing interest                             71                                                                                                                                                                                                                                                                                   71
                  Marketing and reservation                               802                                                                                                                                                                                                                                                                                  802
                  General and administrative                              755                                  (4)                                                                             1                                       2                                                                                                                       754
                  Loss on sale and asset impairments                      35                                                                                                                                                                                                                                           (35)                                    -
                  Restructuring                                           11                                                                                                                                                                                                   (11)                                                                            -
                  Depreciation and amortization                           233                                                                                                                                                                                                                                                                                  233
Total expenses                                                            4,340                                (4)                                     (10)                                    1                                       2                                       (11)                                    (35)                                    4,283
Operating income                                                          941                                  4                                       10                                      (1)                                     (2)                                     11                                      35                                      998
Other (income)/expense, net                                               (7)                                                                                                                                                                                                                                                                                  (7)
Interest expense                                                          113                                                                                                                                                          2                                                                                                                       115
Interest income                                                           (10)                                                                                                                                                                                                                                                                                 (10)
Income before income taxes                                                845                                  4                                       10                                      (1)                                     (4)                                     11                                      35                                      900
Provision for income taxes                                                316                                  1                 (b)                   1                 (b)                   1                 (e)                   (2)               (b)                   4                 (b)                   6                 (b)                   327
Net income                                              $                 529                $                 3                     $                 9                     $                 (2)                   $                 (2)                   $                 7                     $                 29                    $                 573
Earnings per share
                  Basic                                 $                 4.22               $                 0.02                  $                 0.07                  $                 (0.01)                $                 (0.02)                $                 0.06                  $                 0.23                  $                 4.57
                  Diluted                                                 4.18                                 0.02                                    0.07                                    (0.01)                                  (0.02)                                  0.06                                    0.23                                    4.53
Weighted average shares outstanding
                  Basic                                                   125                                  125                                     125                                     125                                     125                                     125                                     125                                     125
                  Diluted                                                 127                                  127                                     127                                     127                                     127                                     127                                     127                                     127
The above table reconciles certain non-GAAP financial measures.  The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the line items of the income statement in order to assist investors’ understanding of the overall impact of such adjustments.  This non-GAAP reconciliation table should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.
Note: EPS amounts may not add due to rounding.
(a)               Related to costs associated with an executive’s departure at the Company’s hotel group business.
(b)               Relates to the tax effect of the adjustment.
(c)               Represents the devaluation of the official exchange rate of Venezuela at the Company’s destination network business.
(d)               Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.
(e)               Relates to the reversal of a state tax accrual.
(f)               Relates to the reversal of a reserve for value-added taxes at the Company’s destination network business.
(g)               Relates to (i) costs incurred as a result of organizational realignment initiatives at the Company’s hotel group and destination network businesses, partially offset by (ii) the reversal of a portion of a restructuring reserve of $1 million established during the fourth quarter of 2013.
(h)               Relates to (i) a loss on the sale of a business and a write-down of an equity investment at the Company’s destination network business and (ii) a write-down of an investment in a joint venture at the Company’s hotel group business.
                                                                                                                                                                        Table 9
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS AND FINANCIAL INFORMATION
(In millions)
FREE CASH FLOW
We define free cash flow to be net cash provided by operating activities less property and equipment additions which we also refer to as capital expenditures.
We believe free cash flow to be a useful operating performance measure to evaluate the ability of our operations to generate cash for uses other than capital expenditures and, after debt service and other obligations, our ability to grow our business through acquisitions, development advances and equity investments, as well as our ability to return cash to shareholders through dividends and share repurchases. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities, net cash used in investing activities and net cash used in financing activities as a means for evaluating Wyndham Worldwide is that free cash flow does not represent the total cash movement for the period as detailed in the consolidated statement of cash flows.
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,
                                                               2015                                                                        2014
Net cash provided by operating activities                      $                                                            991            $    984
Less: Property and equipment additions                                                                                      (222)               (235)
Free cash flow                                                 $                                                            769            $    749
GROSS VOI SALES
The following table provides a reconciliation of Gross VOI sales (see Table 3) to vacation ownership interest sales (see Table 4):
Year
2015                                                           Q1                                                                 Q2       Q3         Q4      Full Year
Gross VOI sales (*)                                            $                                                            390   $  502   $    565   $  507  $         1,965
Less: Sales under WAAM Fee-for-Service                                                                                      (21)     (26)       (37)     (42)           (126)
Gross VOI sales, net of WAAM Fee-for-Service sales                                                                          369      477        528      464            1,838
Less: Loan loss provision                                                                                                   (46)     (60)       (78)     (64)           (248)
Plus: Impact of percentage-of-completion accounting                                                                         13       -          (2)      2              13
Vacation ownership interest sales (*)                          $                                                            336   $  417   $    448   $  403  $         1,604
2014
Gross VOI sales (*)                                            $                                                            410   $  496   $    513   $  470  $         1,889
Less: Sales under WAAM Fee-for-Service                                                                                      (44)     (40)       (27)     (21)           (132)
Gross VOI sales, net of WAAM Fee-for-Service sales                                                                          366      456        486      449            1,757
Less: Loan loss provision                                                                                                   (60)     (70)       (70)     (60)           (260)
Less: Impact of percentage-of-completion accounting                                                                         (3)      (4)        (1)      (4)            (12)
Vacation ownership interest sales (*)                          $                                                            303   $  382   $    415   $  385  $         1,485
2013
Gross VOI sales (*)                                            $                                                            384   $  481   $    536   $  488  $         1,889
Less: Sales under WAAM Fee-for-Service                                                                                      (36)     (44)       (51)     (29)           (160)
Gross VOI sales, net of WAAM Fee-for-Service sales                                                                          347      437        486      459            1,729
Less: Loan loss provision                                                                                                   (84)     (90)       (102)    (73)           (349)
Less: Impact of percentage-of-completion accounting                                                                         -        -          -        (1)            (1)
Vacation ownership interest sales (*)                          $                                                            263   $  347   $    384   $  384  $         1,379
2012
Gross VOI sales (*)                                            $                                                            384   $  460   $    502   $  435  $         1,781
Less: Sales under WAAM Fee-for-Service                                                                                      (17)     (18)       (5)      (10)           (49)
Gross VOI sales, net of WAAM Fee-for-Service sales                                                                          367      442        497      426            1,732
Less: Loan loss provision                                                                                                   (96)     (100)      (124)    (89)           (409)
Vacation ownership interest sales (*)                          $                                                            271   $  342   $    373   $  337  $         1,323
_____________
Note: Amounts may not add due to rounding.
(*) Includes VOI sales under WAAM Just-in-Time beginning in the second quarter of 2012.
The following includes primarily tele-sales upgrades and other non-tour revenues, which are excluded from Gross VOI sales in the Company’s VPG calculation (see Table 3):
                                                               Q1                                                                 Q2       Q3         Q4      Full Year
2015                                                           $                                                            24    $  17    $    32    $  27   $         100
2014                                                           $                                                            25    $  21    $    27    $  24   $         97
2013                                                           $                                                            24    $  18    $    22    $  25   $         89
2012                                                           $                                                            27    $  20    $    22    $  28   $         97

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wyndham-worldwide-reports-fourth-quarter-and-full-year-2015-results-300217003.html

SOURCE Wyndham Worldwide Corporation

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