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This excerpt taken from the WYN 10-K filed Feb 27, 2009. Derivative
Instruments
The Company uses derivative instruments as part of its overall
strategy to manage its exposure to market risks primarily
associated with fluctuations in foreign currency exchange rates
and interest rates. As a matter of policy, the Company does not
use derivatives for trading or speculative purposes. All
derivatives are recorded at fair value either as assets or
liabilities. Changes in fair value of derivatives not designated
as hedging instruments and of derivatives designated as fair
value hedging instruments are recognized currently in earnings
and included either as a component of other revenues or interest
expense, based upon the nature of the hedged item, in the
Consolidated and Combined Statements of Operations. The
effective portion of changes in fair value of derivatives
designated as cash flow hedging instruments is recorded as a
component of other comprehensive income. The ineffective portion
is reported currently in earnings as a component of revenues or
net interest expense, based upon the nature of the
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hedged item. Amounts included in other comprehensive income are
reclassified into earnings in the same period during which the
hedged item affects earnings.
This excerpt taken from the WYN 10-K filed Feb 29, 2008. Derivative
Instruments
The Company uses derivative instruments as part of its overall
strategy to manage its exposure to market risks primarily
associated with fluctuations in foreign currency exchange rates
and interest rates. As a matter of policy, the Company does not
use derivatives for trading or speculative purposes. All
derivatives are recorded at fair value either as assets or
liabilities. Changes in fair value of derivatives not designated
as hedging instruments and of derivatives designated as fair
value hedging instruments are recognized currently in earnings
and included either as a
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component of other revenues or interest expense, based upon the
nature of the hedged item, in the Consolidated and Combined
Statements of Income. The effective portion of changes in fair
value of derivatives designated as cash flow hedging instruments
is recorded as a component of other comprehensive income. The
ineffective portion is reported currently in earnings as a
component of revenues or net interest expense, based upon the
nature of the hedged item. Amounts included in other
comprehensive income are reclassified into earnings in the same
period during which the hedged item affects earnings.
Certain derivative instruments used to manage interest rate
risks of the Company prior to the Separation were entered into
on behalf of the Company by Cendant. The fair value of the
instruments was recorded on Cendant’s Consolidated Balance
Sheets and passed to the Company through the related party
accounts, which are presented on the Consolidated Balance Sheets
within the due from former Parent and subsidiaries line item.
The derivatives that were designated as cash flow hedging
instruments by Cendant did not qualify for hedge accounting
treatment on the Consolidated and Combined Financial Statements
as the derivative remained on Cendant’s balance sheet and
the underlying debt instrument resides on the Consolidated and
Combined Financial Statements. Therefore, any changes in fair
value of these instruments were recognized in the Consolidated
and Combined Statements of Income.
This excerpt taken from the WYN 10-K filed Mar 7, 2007. Derivative
Instruments
The Company uses derivative instruments as part of its overall
strategy to manage its exposure to market risks primarily
associated with fluctuations in foreign currency exchange rates
and interest rates. As a matter of policy, the Company does not
use derivatives for trading or speculative purposes. All
derivatives are recorded at fair value either as assets or
liabilities. Changes in fair value of derivatives not designated
as hedging instruments and of derivatives designated as fair
value hedging instruments are recognized currently in earnings
and included either as a component of other revenues or interest
expense, based upon the nature of the hedged item, in the
Consolidated and Combined Statements of Income. The effective
portion of changes in fair value of derivatives designated as
cash flow hedging instruments is recorded as a component of
other comprehensive income. The ineffective portion is reported
currently in earnings as a component of revenues or net interest
expense, based upon the nature of the hedged item. Amounts
included in other comprehensive income are reclassified into
earnings in the same period during which the hedged item affects
earnings.
Certain derivative instruments used to manage interest rate
risks of the Company prior to the Separation were entered into
on behalf of the Company by Cendant. The fair value of the
instruments was recorded on Cendant’s Consolidated Balance
Sheets and passed to the Company through the related party
accounts, which are presented on the Consolidated and Combined
Balance Sheets within the due from former Parent and
subsidiaries line item. The
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derivatives that were designated as cash flow hedging
instruments by Cendant did not qualify for hedge accounting
treatment on the Consolidated and Combined Financial Statements
as the derivative remained on Cendant’s balance sheet and
the underlying debt instrument resides on the Consolidated and
Combined Financial Statements. Therefore, any changes in fair
value of these instruments were recognized in the Consolidated
and Combined Statements of Income.
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