WYNDHAM WORLDWIDE CORPORATION

(3) Adjusting the carrying value of debt to the estimated fair value, and
(4) Recalculating deferred income taxes under the guidance for income tax accounting, after considering
the likely tax basis a hypothetical buyer would have in the assets and liabilities.
As a result of the above analysis, during the fourth quarter of 2008 the Company recorded a goodwill
impairment charge of $1,342 million ($1,337 million, net of tax) representing a write-off of the entire amount of the
vacation ownership reporting unit’s previously recorded goodwill. Such impairment was a result of plans that the
Company announced during (i) October 2008, in which it refocused its vacation ownership sales and marketing
efforts on consumers with higher credit quality commencing in the fourth quarter of 2008, which reduced future
revenue and growth rates, and (ii) December 2008, in which it decided to eliminate the vacation ownership reporting
unit’s reliance of the asset-backed securities market by reducing its VOI sales pace from $2.0 billion during 2008 to
$1.3 billion during 2009. As of December 31, 2010, 2009 and 2008, the Company’s accumulated goodwill
impairment loss was $1,342 million ($1,337 million, net of tax).
Other Intangible Assets
During the fourth quarter of 2008, the Company recorded (i) a $16 million non-cash impairment charge
primarily due to a strategic change in direction related to the Company’s Howard Johnson brand that is expected to
adversely impact the ability of the properties associated with the franchise agreements acquired in connection with
the acquisition of the brand during 1990 to maintain compliance with brand standards and (ii) an $8 million noncash
impairment charge to reduce the value of an unamortized trademark due to a strategic change in direction and
reduced future investments in a vacation rentals business. See Note 21 — Restructuring and Impairments for more
information.
The changes in the carrying amount of goodwill are as follows:
Balance as of
January 1,
2010
Goodwill
Acquired
during 2010
Foreign
Exchange
Balance as of
December 31,
2010
Lodging $ 297 $ 3 (a) $ — $ 300
Vacation Exchange and Rentals 1,089 104 (b)
(12) 1,181
Total Company $ 1,386 $ 107 $ (12) $ 1,481
(a)
(b)
Relates to the acquisition of the Tryp hotel brand (see Note 4 — Acquisitions).
Relates to the acquisition of Hoseasons, ResortQuest and James Villa Holidays (see Note 4 — Acquisitions).
Amortization expense relating to all intangible assets was as follows:
Year Ended December 31,
2010 2009 2008
Franchise agreements $ 20 $ 20 $ 21
Trademarks — 1 2
Other 8 7 7
Total (*)
$ 28 $ 28 $ 30
(*)
Included as a component of depreciation and amortization on the Consolidated Statements of Operations.
Based on the Company’s amortizable intangible assets as of December 31, 2010, the Company expects related
amortization expense over the next five years as follows:
Amount
2011 $ 29
2012 29
2013 28
2014 28
2015 27
6. Franchising and Marketing/Reservation Activities
Franchise fee revenues of $461 million, $440 million and $514 million on the Consolidated Statements of
Operations for 2010, 2009 and 2008, respectively, include initial franchise fees of $8 million, $9 million and
$11 million, respectively.
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