Wyndham Worldwide (WYN)

 

During the three months ended March 31, 2009, we used $32 million less cash for investing activities as compared with the three months ended March 31, 2008, which principally reflects (i) the net change in cash flows from escrow deposits restricted cash of $32 million primarily due to the absence of the 2008 contractually obligated repairs at one of our VOI resorts and a decrease in escrow amounts resulting from timing differences between our deeding and sales processes for certain VOI sales and (ii) an $11 million decrease in cash outflows from securitized restricted cash primarily due to the timing of cash that we are required to set aside in connection with additional vacation ownership contract receivables securitizations. Such decrease in cash outflows was partially offset by a $14 million increase in property and equipment additions primarily due to higher leasehold improvements related to the consolidation of two leased facilities into one, which we occupied during the first quarter of 2009.

 

 

During 2008, we used $64 million more cash for investing activities as compared with 2007. The increase in cash outflows relates to (i) higher acquisition-related payments of $119 million primarily due to the acquisition of USFS and (ii) $21 million of lower proceeds received from asset sales primarily due to the absence of proceeds received in connection with the sale of certain vacation ownership properties and related assets during 2007. Such increase in cash outflows was partially offset by (i) a decrease of $32 million in investments primarily within our lodging and vacation exchange and rentals businesses, (ii) a decrease in escrow deposits restricted cash of $31 million primarily resulting from timing differences between our deeding and sales processes for certain VOI

 

During the nine months ended September 30, 2008, we used $112 million more cash for investing activities as compared with the nine months ended September 30, 2007. The increase in cash outflows relates to (i) higher acquisition-related payments of $122 million primarily due to the acquisition of USFS, (ii) an increase in escrow deposits restricted cash of $19 million primarily resulting from contractually obligated repairs at one of our VOI resorts and (iii) $19 million of less proceeds received in connection with asset sales primarily due to the absence of proceeds received in connection with the sale of certain vacation ownership properties and related assets during the third quarter of 2007. Such increase in cash outflows were partially offset by (i) a decrease of $33 million in investments primarily within our lodging business and (ii) a $13 million decrease in securitized restricted cash primarily due to the timing of cash that we are required to set aside in connection with additional vacation ownership contract receivables securitizations.

 

Restricted cash amounts within investing activities, as compared to previous filings, have been presented separately in our statement of cash flows to provide enhanced visibility into the portions related to securitizations and escrow deposits.

 

 

During the six months ended June 30, 2008, we used $34 million more cash for investing activities as compared with the six months ended June 30, 2007. The increase in cash outflows primarily relates to an increase in restricted cash of $68 million resulting from cash we are required to set aside in connection with (i) additional vacation ownership contract receivables securitizations and (ii) contractually obligated repairs at one of our VOI resorts. Such increase in cash outflows were partially offset by (i) a decrease of $15 million in investments primarily within our lodging business, (ii) lower acquisition-related payments of $7 million due to the conversion of one of our Landal parks from franchised to managed during 2007, (iii) $6 million of proceeds received in connection with asset sales primarily relating to the sale of certain vacation exchange and rental properties during 2008 and (iv) a decrease of $5 million in property and equipment additions due to lower capital expenditures within our vacation ownership and corporate businesses, partially offset by higher capital expenditures at our lodging and vacation exchange and rentals businesses.

 

 

During the three months ended March 31, 2008, we used $9 million more cash for investing activities as compared with the three months ended March 31, 2007. The increase in cash outflows primarily relates to an increase in restricted cash of $33 million resulting from contractually obligated repairs at one of our VOI resorts and an increase in escrow amounts resulting from timing differences between our deeding and sales processes for certain VOI sales. Such increase in cash outflows were partially offset by a decrease of $19 million in investments and development advances within our lodging business and investments made within our vacation exchange and rentals business.

 

 

During 2007, we used $216 million less cash for investing activities as compared with 2006. The decrease in cash outflows primarily relates to (i) the absence of $143 million of intercompany funding to former Parent due to our separation from Cendant, (ii) lower acquisition-related payments of $89 million primarily due to the acquisition of the Baymont brand for approximately $60 million in cash and the acquisition of a vacation ownership and resort management business for $43 million in cash during 2006, partially offset by the acquisition of four individually non-significant businesses within our vacation ownership and vacation exchange and rentals businesses for aggregate net consideration of $15 million in cash during 2007 and (iii) $26 million of proceeds received in connection with the sale of certain vacation ownership properties and related assets during the third quarter of 2007. Such decreases in cash outflows were partially offset by (i) an increase of $26 million in investments and development advances within our lodging business and investments made within our vacation exchange and rentals business and (ii) decreased restricted cash of $21 million primarily related to cash we are required to set aside in connection with additional vacation ownership contract receivables securitizations, partially offset by the release of escrow amounts as a result of the completion of the deeding process for certain VOI sales.

 

 

During the nine months ended September 30, 2007, we used $208 million less cash for investing activities as compared with the same period in 2006. The decrease in cash outflows primarily relates to (i) the absence of $117 million of intercompany funding to former Parent due to our separation from Cendant, (ii) lower acquisition-related payments of $93 million primarily due to the acquisition of the Baymont brand for approximately $60 million in cash and the acquisition of a vacation ownership and resort management business for $43 million in cash during 2006, partially offset by the acquisition of a vacation ownership sales and marketing business for $6 million in cash during 2007, (iii) increased restricted cash of $29 million, primarily related to cash we are required to set aside in connection with additional vacation ownership contract receivables securitizations and (iv) $26 million of proceeds received in connection with the sale of certain vacation ownership properties and related assets during the third quarter of 2007. Such decreases in cash outflows were partially offset by (i) an increase of $42 million in investments and development advances primarily due to investments made within our lodging and vacation exchange and rentals businesses to acquire minority equity interests and (ii) an increase of $17 million in capital expenditures primarily due to additions at our vacation ownership business and corporate infrastructure costs associated with our separation from Cendant.

 

During the six months ended June 30, 2007, we used $129 million less cash for investing activities as compared with the same period in 2006. The decrease in cash outflows primarily relates to (i) the absence of $110 million of intercompany funding to former Parent due to our separation from Cendant and (ii) lower acquisition-related payments of $55 million due to the acquisition of the Baymont brand for approximately $60 million in cash during 2006. Such decreases in cash outflows were partially offset by (i) an increase of $21 million in investments and development advances primarily due an investment made within our lodging business to acquire a minority equity interest and (ii) an increase of $21 million in capital expenditures primarily due to additions at our vacation ownership business and corporate infrastructure costs associated with our separation from Cendant.

 

 

During the three months ended March 31, 2007, we used $10 million less cash for investing activities as compared with the same period in 2006. The decrease in cash outflows primarily relates to the absence of $44 million of intercompany funding to former Parent due to our separation from Cendant partially offset by (i) an increase of $20 million in investments and development advances primarily due to an investment made within our lodging business to acquire a minority equity interest and (ii) an increase of $16 million in capital expenditures primarily due to additions across all of our businesses and corporate infrastructure costs associated with our separation from Cendant.

 

 

During 2006, we used $225 million less cash for investing activities as compared to 2005. The decrease in cash outflows primarily relates to (i) a $255 million decrease in intercompany funding provided to former Parent, which was eliminated due to our separation from Cendant and (ii) lower acquisition related payments of $49 million primarily due to fewer acquisitions made in 2006 (in 2005, we used $149 million to acquire the Wyndham Hotels and Resorts brand and a few non-significant businesses primarily within our Vacation Ownership segment, whereas in 2006, we used $103 million to acquire the Baymont brand and a vacation ownership and resort management business). Such decreases in cash outflows were partially offset by (i) an increase of $57 million in capital expenditures primarily due to additions within vacation ownership and corporate infrastructure costs associated with the separation and (ii) a reduction of $12 million in restricted cash, which we are required to set aside in connection with certain borrowing arrangements and business activities of our vacation ownership business.