Wyndham Worldwide (WYN)

 

Interest expense (income), net decreased $19 million during 2005 compared to 2004 principally as a result of (i) a $13 million decrease in interest expense at our vacation ownership business primarily due to refinanced borrowings with more favorable financing terms and (ii) a $9 million decrease in interest expense at our lodging business due to the repayment of a note payable in September 2004. Such decreases were partially offset by a $3 million increase at our vacation exchange and rentals business primarily due to increased average borrowings. All such amounts are recorded within interest expense (income), net on the Consolidated and Combined Statements of Income.

 

Interest expense (income), net increased $13 million in the third quarter of 2006 compared with the third quarter of 2005 primarily as a result of (i) $12 million of interest paid on the new borrowing arrangements that we entered into in July 2006, which had an average outstanding balance of $717 million and an average interest rate of 5.9%, (ii) a $5 million decrease in net interest income earned on advances between us and our former Parent due to advances eliminated upon our separation from Cendant and (iii) a $2 million decline in interest income earned on invested cash balances as a result of a decrease in cash available for investment. Such amounts were partially offset by (i) a decline of $4 million of interest paid on our vacation ownership asset-linked debt primarily due to its elimination by our former Parent in July 2006 and (ii) a $3 million increase in capitalized interest at our vacation ownership business increased due to the development of vacation ownership inventory. All such amounts are recorded within interest expense (income), net on the Condensed Consolidated and Combined Statements of Income.