WYNDHAM WORLDWIDE CORPORATION

Market Risk
The Company is subject to risks relating to the geographic concentrations of (i) areas in which the Company is
currently developing and selling vacation ownership properties, (ii) sales offices in certain vacation areas and
(iii) customers of the Company’s vacation ownership business; which in each case, may result in the Company’s
results of operations being more sensitive to local and regional economic conditions and other factors, including
competition, natural disasters and economic downturns, than the Company’s results of operations would be absent
such geographic concentrations. Local and regional economic conditions and other factors may differ materially
from prevailing conditions in other parts of the world. Florida and Nevada are examples of areas with concentrations
of sales offices. For the twelve months ended December 31, 2010, approximately 15%, 13% and 10% of the
Company’s VOI sales revenues were generated in sales offices located in Florida, Nevada and California,
respectively.
Included within the Consolidated Statements of Operations is approximately 10%, 11% and 11% of net
revenues generated from transactions in the state of Florida in each of 2010, 2009 and 2008, respectively, and
approximately 8%, 8% and 10% of net revenues generated from transactions in the state of California in each of
2010, 2009 and 2008, respectively.
16. Commitments and Contingencies
COMMITMENTS
Leases
The Company is committed to making rental payments under noncancelable operating leases covering various
facilities and equipment. Future minimum lease payments required under noncancelable operating leases as of
December 31, 2010 are as follows:
Year
Noncancelable
Operating
Leases
2011 $ 69
2012 56
2013 40
2014 31
2015 29
Thereafter 133
$ 358
During 2010, 2009 and 2008, the Company incurred total rental expense of $79 million, $77 million and
$93 million, respectively.
Purchase Commitments
In the normal course of business, the Company makes various commitments to purchase goods or services from
specific suppliers, including those related to vacation ownership resort development and other capital expenditures.
Purchase commitments made by the Company as of December 31, 2010 aggregated $477 million. Individually, such
commitments range as high as $97 million related to the development of a vacation ownership resort. The majority
of the commitments relate to the development of vacation ownership properties (aggregating $241 million;
$101 million of which relates to 2011 and $45 million of which relates to 2012).
Letters of Credit
As of December 31, 2010 and 2009, the Company had $28 million and $31 million, respectively, of irrevocable
letters of credit outstanding, which mainly support development activity at the Company’s vacation ownership
business.
Surety Bonds
Some of the Company’s vacation ownership developments are supported by surety bonds provided by affiliates
of certain insurance companies in order to meet regulatory requirements of certain states. In the ordinary course of
the Company’s business, it has assembled commitments from thirteen surety providers in the amount of $1.2 billion,
of which the Company had $343 million outstanding as of December 31, 2010. The availability, terms and
conditions, and pricing of such bonding capacity is dependent on, among other things, continued financial strength
and stability of the insurance company affiliates providing such bonding capacity, the general availability of such
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