WYNDHAM WORLDWIDE CORPORATION

k a $49 million increase in franchise agreements and other intangibles, net, primarily related to the
acquisitions of Hoseasons, the Tryp hotel brand, ResortQuest and James Villa Holidays, partially offset by
the amortization of franchise agreements at our lodging business;
k a $21 million increase in trade receivables, net, primarily due to the acquisitions of Hoseasons,
ResortQuest and James Villa Holidays and increased ancillary revenue at our lodging business primarily
related to additional services provided to franchisees, partially offset by the impact of foreign currency
translation at our vacation exchange and rentals business and a decline in ancillary revenues at our
vacation ownership business; and
k a $12 million increase in other current assets due to increased current escrow deposit restricted cash at our
vacation ownership business primarily related to higher VOI sales and increased current securitized
restricted cash resulting from the timing of cash that we are required to set aside in connection with
additional vacation ownership contract receivables securitizations, partially offset by a decline in assets
available for sale resulting from the sale of a vacation ownership property and related assets that were no
longer consistent with our development plans.
Such increases were partially offset by:
k a $126 million decrease in inventory primarily due to increased VOI sales and a reduction in the
development of vacation ownership resorts;
k a $99 million decrease in vacation ownership contract receivables, net as a result of a decline in VOI sales
financed;
k a $26 million decrease in other non-current assets primarily due to the settlement of a portion of our call
options in connection with the repurchase of our 3.50% convertible notes and decreased deferred expenses
related to sales incentives awarded to owners at our vacation ownership business, partially offset by an
increase in the fair value of our call option transaction entered into concurrent with the issuance of the
convertible notes, which is discussed in greater detail in Note 13 — Long-Term Debt and Borrowing
Arrangements and increased deferred financing costs as a result of the debt issuances during 2010;
k $12 million of decreased prepaid expenses due to declines in prepaid commissions and prepaid marketing
expenses at our vacation ownership business; and
k a $10 million decrease in deferred income taxes primarily attributable to the utilization of alternative
minimum tax credits.
Total liabilities decreased $165 million primarily due to:
k a $231 million decrease in due to former Parent and subsidiaries primarily due to the settlement of the IRS
examination of Cendant’s taxable years 2003 through 2006;
k a $116 million decrease in deferred income taxes primarily attributable to an installment sale recognition
adjustment resulting from the IRS Settlement, partially offset by a change in the expected timing of the
utilization of alternative minimum credits;
k an $77 million decrease in deferred income primarily resulting from the impact of the recognition of
revenues related to our vacation ownership trial membership marketing program and lower deferred
revenues at our vacation exchange and rentals business, partially offset by increased deferred revenues at
our lodging business; and
k a $17 million decrease in other non-current liabilities primarily due to lower liability balances on certain
financial instruments and a decline in unrecognized tax liabilities.
Such decreases were partially offset by:
k a $143 million net increase in our securitized vacation ownership debt (see Note 13 — Long-Term Debt
and Borrowing Arrangements);
k a net increase of $79 million in our other long-term debt primarily reflecting the issuances of our
$250 million 5.75% senior unsecured notes and $250 million 7.375% senior unsecured notes, a $154 million
net increase in outstanding borrowings on our corporate revolver, partially offset by the early
extinguishment of our $300 million term loan facility during March 2010, net principal payments on our
other long-term debt with operating cash of $169 million, a $101 million decrease related to the repurchase
of a portion of our 3.50% convertible notes, a $14 million net decrease in our derivative liability related to
the bifurcated conversion feature entered into concurrent with the sale of our convertible notes, which is
discussed in greater detail in Note 13 — Long-Term Debt and Borrowing Arrangements, and a $6 million
impact due to foreign currency translation;
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