WYNDHAM WORLDWIDE CORPORATION

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We expect Corporate expenses of approximately $75 million to $85 million during 2011. The increase in expenses primarily reflects continued investment in information technology and data security enhancements in response to the increasingly aggressive global threat from cyber-criminals. Interest Expense/Interest Income/Provision for Income Taxes Interest expense increased $53 million during 2010 compared with 2009 as a result of: k an $18 million increase in interest incurred on our long-term debt facilities, primarily related to our May 2009, February 2010 and September 2010 debt issuances, partially offset by the early extinguishment of our term loan facility; k our termination of an interest rate swap agreement related to the early extinguishment of our term loan facility during the first quarter of 2010, which resulted in the reclassification of a $14 million unrealized loss from accumulated other comprehensive income to interest expense on our Consolidated Statement of Operations; k $14 million of costs incurred for the repurchase of a portion of our 3.50% convertible notes during the third and fourth quarters of 2010; k a $5 million decrease in capitalized interest primarily due to lower development of vacation ownership inventory at our vacation ownership business; and k an additional $2 million of costs, which are included within interest expense on our Consolidated Statement of Operations, recorded during the first quarter of 2010 in connection with the early extinguishment of our term loan and revolving foreign credit facilities. Interest income decreased $2 million during 2010 compared with 2009 due to decreased interest earned on invested cash balances as a result of lower rates earned on investments. Our effective tax rate declined from 40.6% during 2009 to 32.7% during 2010 primarily due to the benefit derived from the current utilization of certain cumulative foreign tax credits, which we were able to realize based on certain changes in our tax profile, as well as the settlement of the IRS examination. 48
OPERATING STATISTICS The following table presents our operating statistics for the years ended December 31, 2009 and 2008. See Results of Operations section for a discussion as to how these operating statistics affected our business for the periods presented. Lodging Number of rooms (a) RevPAR (b) Vacation Exchange and Rentals Average number of members (000s) (c) Annual dues and exchange revenues per member (d) Vacation rental transactions (in 000s) (e) Average net price per vacation rental (f) Vacation Ownership Gross VOI sales (in 000s) (g) (a) (b) (c) (d) (e) (f) (g) (h) (i) Tours (h) Volume Per Guest (“VPG”) (i) Year Ended December 31, 2009 2008 % Change 597,700 592,900 1 $ 30.34 $ 35.74 (15) 3,782 3,670 3 $ 120.22 $ 128.37 (6) 1,356 1,347 1 $ 423.04 $ 463.10 (9) $1,315,000 $1,987,000 (34) 617,000 1,143,000 (46) $ 1,964 $ 1,602 23 Represents the number of rooms at lodging properties at the end of the period which are either (i) under franchise and/or management agreements, (ii) properties affiliated with Wyndham Hotels and Resorts brand for which we receive a fee for reservation and/or other services provided and (iii) properties managed under a joint venture. The amounts in 2009 and 2008 include 3,549 and 4,175 affiliated rooms, respectively. Represents revenue per available room and is calculated by multiplying the percentage of available rooms occupied during the period by the average rate charged for renting a lodging room for one day. Represents members in our vacation exchange programs who pay annual membership dues. For additional fees, such participants are entitled to exchange intervals for intervals at other properties affiliated with our vacation exchange business. In addition, certain participants may exchange intervals for other leisure-related services and products. Represents total revenue from annual membership dues and exchange fees generated for the period divided by the average number of vacation exchange members during the period. Excluding the impact of foreign exchange movements, annual dues and exchange revenues per member decreased 3%. Represents the number of transactions that are generated in connection with customers booking their vacation rental stays through us. In our European vacation rentals businesses, one rental transaction is recorded each time a standard one-week rental is booked; however, in the United States, one rental transaction is recorded each time a vacation rental stay is booked, regardless of whether it is less than or more than one week. Represents the net rental price generated from renting vacation properties to customers divided by the number of rental transactions. Excluding the impact of foreign exchange movements the average net price per vacation rental increased 1%. Represents gross sales of VOIs (including tele-sales upgrades, which are a component of upgrade sales) before deferred sales and loan loss provisions. Represents the number of tours taken by guests in our efforts to sell VOIs. Represents gross VOI sales (excluding tele-sales upgrades, which are a component of upgrade sales) divided by the number of tours. Year Ended December 31, 2009 vs. Year Ended December 31, 2008 Our consolidated results comprised the following: 2009 Year Ended December 31, 2008 Change Net revenues $ 3,750 $ 4,281 $ (531) Expenses 3,156 5,111 (1,955) Operating income/(loss) 594 (830) 1,424 Other income, net (6) (11) 5 Interest expense 114 80 34 Interest income (7) (12) 5 Income/(loss) before income taxes 493 (887) 1,380 Provision for income taxes 200 187 13 Net income/(loss) $ 293 $ (1,074) $ 1,367 During 2009, our net revenues decreased $531 million (12%) principally due to: k a $672 million decrease in gross sales of VOIs at our vacation ownership businesses reflecting the planned reduction in tour flow, partially offset by an increase in VPG; 49
Page 1 and 2: UNITED STATES SECURITIES AND EXCHAN
Page 3 and 4: PART I FORWARD LOOKING STATEMENTS T
Page 5 and 6: Our portfolio of well-known hospita
Page 7 and 8: The following table sets forth the
Page 9 and 10: free access to a gym facility and t
Page 11 and 12: as annual budget preparation, finan
Page 13 and 14: Our field services team, strategica
Page 15 and 16: Competition Competition is robust a
Page 17 and 18: we offer property owners marketing
Page 19 and 20: Internet Given the increasing inter
Page 21 and 22: According to information compiled b
Page 23 and 24: Owners who participate in Club Wynd
Page 25 and 26: Purchaser Financing Wyndham Vacatio
Page 27 and 28: EMPLOYEES As of December 31, 2010,
Page 29 and 30: that we will be able to achieve the
Page 31 and 32: Our inability to adequately protect
Page 33 and 34: 2014; Atlanta, Georgia expiring in
Page 35 and 36: Stock Performance Graph The Stock P
Page 37 and 38: (f) (g) (h) (i) (j) (k) (l) (m) (n)
Page 39 and 40: We enter into agreements to franchi
Page 41 and 42: eal estate inventory costs incurred
Page 43 and 44: Year Ended December 31, 2010 vs. Ye
Page 45 and 46: Arrangements), (ii) $16 million of
Page 47 and 48: at our U.K. and France destinations
Page 49: In addition, EBITDA was negatively
Page 53 and 54: k $29 million of losses from foreig
Page 55 and 56: and $9 million of lower volume-rela
Page 57 and 58: k $25 million of increased costs re
Page 59 and 60: k a $49 million increase in franchi
Page 61 and 62: Operating Activities During 2010, n
Page 63 and 64: Capital Deployment We are focusing
Page 65 and 66: Capacity As of December 31, 2010, a
Page 67 and 68: We believe that our bank conduit fa
Page 69 and 70: on the matter. As a result of settl
Page 71 and 72: was approximately $373 million as o
Page 73 and 74: performance for a five-year period.
Page 75 and 76: cash flow model in determining the
Page 77 and 78: Cendant’s Vacation Network Group
Page 79 and 80: SIGNATURES Pursuant to the requirem
Page 81 and 82: REPORT OF INDEPENDENT REGISTERED PU
Page 83 and 84: WYNDHAM WORLDWIDE CORPORATION CONSO
Page 85 and 86: WYNDHAM WORLDWIDE CORPORATION CONSO
Page 87 and 88: The Company’s franchise agreement
Page 89 and 90: manages paid Wyndham Exchange & Ren
Page 91 and 92: expenses amounted to $48 million, $
Page 93 and 94: average exchange rates during the p
Page 95 and 96: integrated the operations of its ac
Page 97 and 98: (3) Adjusting the carrying value of
Page 99 and 100: 7. Income Taxes The income tax prov
Page 101 and 102:
The following table summarizes the
Page 103 and 104:
Credit Quality for Financed Receiva
Page 105 and 106:
10. Property and Equipment, net Pro
Page 107 and 108:
measurement date and a maximum cons
Page 109 and 110:
As of December 31, 2010, the Compan
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Vacation Rental Capital Leases. The
Page 113 and 114:
The following table presents additi
Page 115 and 116:
Consolidated Statement of Operation
Page 117 and 118:
capacity and the Company’s corpor
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shareholders and further amended as
Page 121 and 122:
comprehensive income on the Consoli
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Total restructuring costs by segmen
Page 125 and 126:
and Avis Budget Group to satisfy th
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(a) (b) (c) (d) (e) (f) (g) (h) (i)
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10.4 Employment Agreement with Fran
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14.1 101.INS XBRL Instance document
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Name WYNDHAM WORLDWIDE CORPORATION
Page 135 and 136:
Exhibit 23.1 CONSENT OF INDEPENDENT
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CERTIFICATION Exhibit 31.2 I, Thoma
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WYNDHAM WORLDWIDE CORPORATION

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