WYNDHAM WORLDWIDE CORPORATION

7. Income Taxes
The income tax provision consists of the following for the year ended December 31:
2010 2009 2008
Current
Federal $ 55 $ 46 $ 64
State 10 19 2
Foreign 43 45 11
Deferred
108 110 77
Federal 77 100 89
State 1 (6) 25
Foreign (2) (4) (4)
76 90 110
Provision for income taxes $ 184 $ 200 $ 187
Pre-tax income/(loss) for domestic and foreign operations consisted of the following for the year ended
December 31:
2010 2009 2008
Domestic $ 443 $ 390 $ (928)
Foreign 120 103 41
Pre-tax income/(loss) $ 563 $ 493 $ (887)
Current and non-current deferred income tax assets and liabilities, as of December 31, are comprised of the
following:
2010 2009
Current deferred income tax assets:
Accrued liabilities and deferred income $ 83 $ 77
Provision for doubtful accounts and vacation ownership contract receivables 150 139
Alternative minimum tax credit carryforward 32 96
Valuation allowance (*)
(20) (36)
Other 23 18
Current deferred income tax assets
Current deferred income tax liabilities:
268 294
Prepaid expenses 3 5
Unamortized servicing rights 2 4
Installment sales of vacation ownership interests 76 89
Other 8 7
Current deferred income tax liabilities 89 105
Current net deferred income tax asset $ 179 $ 189
F-20