WYNDHAM WORLDWIDE CORPORATION

on January 1, 2011, as required, and it believes the guidance will not have a material impact on the Company’s
Consolidated Financial Statements.
3. Earnings per Share
The computation of basic and diluted earnings per share (“EPS”) is based on the Company’s net income/(loss)
available to common stockholders divided by the basic weighted average number of common shares and diluted
weighted average number of common shares, respectively.
The following table sets forth the computation of basic and diluted EPS (in millions, except per share data):
Year Ended December 31,
2010 2009 2008
Net income/(loss) $ 379 $ 293 $ (1,074)
Basic weighted average shares outstanding 178 179 178
Stock options and RSUs (a)
4 3 —
Warrants (b)
3 — —
Diluted weighted average shares outstanding
Earnings/(losses) per share:
185 182 178
Basic $ 2.13 $ 1.64 $ (6.05)
Diluted 2.05 1.61 (6.05)
(a)
(b)
Includes unvested dilutive RSUs which are subject to future forfeitures.
Represents the dilutive effect of warrants to purchase shares of the Company’s common stock related to the May 2009 issuance of the Company’s
convertible notes (See Note 13 — Long — Term Debt and Borrowing Arrangements).
The computations of diluted EPS for the years ended December 31, 2010, 2009 and 2008 do not include
approximately 4 million, 9 million and 13 million stock options and stock-settled stock appreciation rights
(“SSARs”), respectively, as the effect of their inclusion would have been anti-dilutive. Additionally, for the year
ended December 31, 2009, the computation of diluted EPS does not include warrants to purchase approximately
18 million shares of the Company’s common stock related to the May 2009 issuance of the Company’s Convertible
Notes (see Note 13 — Long — Term Debt and Borrowing Arrangements) as the effect of their inclusion would have
been anti-dilutive.
Dividend Payments
During each of the quarterly periods ended March 31, June 30, September 30 and December 31, 2010, the
Company paid cash dividends of $0.12 per share ($86 million in the aggregate). During each of the quarterly periods
ended March 31, June 30, September 30 and December 31, 2009 and 2008 the Company paid cash dividends of
$0.04 per share ($29 million and $28 million in the aggregate during 2009 and 2008, respectively).
Stock Repurchase Program
On August 20, 2007, the Company’s Board of Directors authorized a stock repurchase program that enables it
to purchase up to $200 million of its common stock. Under such program, the Company repurchased
2,155,783 shares at an average price of $26.89 for a cost of $58 million and repurchase capacity increased
$13 million from proceeds received from stock option exercises as of December 31, 2009. On July 22, 2010, the
Company’s Board of Directors increased the authorization by $300 million. During 2010, the Company repurchased
9,270,419 shares at an average price of $25.52 for a cost of $237 million and repurchase capacity increased
$40 million from proceeds received from stock option exercises. As of December 31, 2010, the Company
repurchased a total of 11,426,202 shares at an average price of $25.78 for a cost of $295 million under its current
authorization and had $258 million remaining availability in its program.
4. Acquisitions
Assets acquired and liabilities assumed in business combinations were recorded on the Consolidated Balance
Sheets as of the respective acquisition dates based upon their estimated fair values at such dates. The results of
operations of businesses acquired by the Company have been included in the Consolidated Statements of Operations
since their respective dates of acquisition. The excess of the purchase price over the estimated fair values of the
underlying assets acquired and liabilities assumed was allocated to goodwill. In certain circumstances, the allocations
of the excess purchase price are based upon preliminary estimates and assumptions. Accordingly, the allocations
may be subject to revision when the Company receives final information, including appraisals and other analyses.
Any revisions to the fair values during the allocation period, which may be significant, will be recorded by the
Company as further adjustments to the purchase price allocations. Although the Company has substantially
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