Wyndham Worldwide (WYN)

 

Interest expense remained flat during the three months ended March 31, 2009 compared with the same period during 2008 as a result of a $1 million decrease in interest paid on our long-term debt facilities offset by a $1 million decrease in capitalized interest at our vacation ownership business due to lower development of vacation ownership inventory. Interest income decreased $1 million during the three months March 31, 2009 compared with the same period during 2008 due to decreased interest earned on invested cash balances as a result of a decrease in cash available for investment.

 

 

Interest expense increased $7 million during 2008 compared with 2007 as a result of (i) a $4 million decrease in capitalized interest at our vacation ownership business due to lower development of vacation ownership inventory

 

Interest expense increased $4 million during the nine months ended September 30, 2008 compared with the same period during 2007 as a result of (i) a $3 million decrease in capitalized interest at our vacation ownership business due to lower

 

Interest expense increased $2 million during the six months ended June 30, 2008 compared with the same period during 2007 as a result of lower capitalized interest at our vacation ownership business due to lower development of vacation ownership inventory. Interest income remained flat during the six months ended June 30, 2008 compared with the same period during 2007.

 

 

Interest expense increased $1 million in the first quarter of 2008 compared with the first quarter of 2007 primarily as a result of a $2 million decrease in capitalized interest at our vacation ownership business due to lower development of vacation ownership inventory, partially offset by a $1 million decrease in interest paid on our long-term debt facilities. Interest income remained flat in the first quarter of 2008 compared with the first quarter of 2007.

 

 

Interest expense increased $38 million during 2006 compared to 2005 primarily as a result of (i) $36 million of increased interest expense on borrowings primarily due to increased average borrowings on existing debt and interest paid on new debt arrangements entered into in July 2006 and (ii) $11 million of interest on local taxes payable to certain foreign jurisdictions, partially offset by a $9 million increase in capitalized interest at our vacation ownership business due to the increased development of vacation ownership inventory. Interest income decreased $3 million during 2006 compared to 2005 primarily as a result of a $6 million decrease in net interest income earned on advances between us and our former Parent due to twelve months of activity during 2005 compared to seven months of activity during 2006, partially offset by a $2 million increase in interest income earned on invested cash balances as a result of an increase in average cash available for investment.

 

Interest expense increased $5 million during the nine months ended September 30, 2007 compared with the same period in 2006 primarily as a result of $42 million of incremental interest paid on the new borrowing arrangements that we entered

 

Interest expense increased $2 million during the six months ended June 30, 2007 compared with the same period in 2006 primarily as a result of $35 million of interest paid on the new borrowing arrangements that we entered into in July 2006 and December 2006, partially offset by (i) a decline of $16 million of interest paid on our vacation ownership asset-linked debt due to its elimination by our former Parent in July 2006, (ii) the absence of $11 million of interest on local taxes payable to certain foreign jurisdictions and (iii) a $6 million increase in capitalized interest at our vacation ownership business increased due to the development of vacation ownership inventory. Interest income decreased $19 million during the six months ended June 30, 2007 compared with the same period in 2006 primarily as a result of a $21 million decrease in net interest income earned on advances between us and our former Parent, since those advances were eliminated upon our separation from Cendant, partially offset by a $2 million increase in interest income earned on invested cash balances as a result of a increase in cash available for investment.

 

 

Interest expense increased $8 million in the first quarter of 2007 compared with the first quarter of 2006 primarily as a result of $19 million of interest paid on the new borrowing arrangements that we entered into in July 2006 and December 2006, partially offset by (i) a decline of $7 million of interest paid on our vacation ownership asset-linked debt due to its elimination by our former Parent in July 2006 and (ii) a $4 million increase in capitalized interest at our vacation ownership business increased due to the development of vacation ownership inventory. All such expense amounts are recorded within interest expense on the Condensed Consolidated and Combined Statements of Income. Interest income decreased $9 million in the first quarter of 2007 compared with the first quarter of 2006 primarily as a result of a $10 million decrease in net interest income earned on advances between us and our former Parent, since those advances were eliminated upon our separation from Cendant, partially offset by a $1 million increase in interest income earned on invested cash balances as a result of a increase in cash available for investment. All such income amounts are recorded within interest income on the Condensed Consolidated and Combined Statements of Income.