Wyndham Worldwide (WYN)

 

During the three months ended March 31, 2009, we generated $123 million more cash from operating activities as compared to the three months ended March 31, 2008, which principally reflects (i) lower originations of our vacation ownership contract receivables due to our previously announced initiative to reduce 2009 VOI sales pace, (ii) decreased other current assets primarily due to the recognition of VOI sales commissions that were previously deferred, (iii) higher accrued expenses primarily related to our organizational realignment initiatives (see Restructuring Plan for more details) and increased accounts payable primarily due to timing, (iv) lower trade accounts receivables primarily due to lower revenues across our lodging, vacation exchange and rentals, and vacation ownership businesses and (v) an increase in our provision for loan losses due to a higher estimate of uncollectible receivables as a percentage of VOI sales financed. Such

 

During 2008, we generated $99 million more cash from operating activities as compared to 2007, which principally reflects (i) higher cash received in connection with VOI sales for which the revenue recognition is deferred, (ii) an increase in our provision for loan losses due to a higher estimate of uncollectible receivables as a percentage of VOI sales financed during 2008 as compared to 2007 and (iii) lower investments in inventory and vacation ownership receivables. Such changes were partially offset by a decrease in accounts payable and accrued expenses primarily due to (i) litigation settlements during 2008, (ii) lower accrued marketing, commissions and employee incentive expenses during 2008 at our vacation ownership business related to our initiative to reduce our future VOI sales pace (see Restructuring Plan) and (iii) a decline in advance bookings and multi-year enrollment renewals at our vacation exchange and rentals business, partially offset by higher accrued expenses related to our restructuring plan. In addition, other current assets increased primarily related to deferred commission costs in connection with the aforementioned deferred revenue from VOI sales.

 

 

During the nine months ended September 30, 2008, we generated $72 million more cash from operating activities as compared to the nine months ended September 30, 2007, which principally reflects (i) higher cash received in connection with VOI sales for which the revenue recognition is deferred, (ii) an increase in our provision for loan losses due to a higher estimate of uncollectible receivables as a percentage of VOI sales financed during the nine months ended September 30, 2008 as compared to the same period during 2007 and (iii) lower investments in inventory and vacation ownership receivables. Such changes were partially offset by (i) timing of accounts payable and accrued expenses and (ii) an increase within other current assets primarily related to deferred commission costs in connection with the aforementioned deferred revenue from VOI sales.

 

 

During the six months ended June 30, 2008, we generated $108 million more cash from operating activities as compared to the six months ended June 30, 2007, which principally reflects (i) higher cash received in connection with VOI sales for which the revenue recognition is deferred and (ii) lower investments in inventory and vacation ownership receivables. Such changes were partially offset by (i) timing of accounts payable and accrued expenses and (ii) increased other current assets primarily related to deferred commission costs in connection with the aforementioned deferred revenue from VOI sales.

 

 

During the three months ended March 31, 2008, we generated $102 million more cash from operating activities as compared to the three months ended March 31, 2007, which principally reflects (i) higher cash received in connection with VOI sales for which the revenue recognition is deferred and (ii) lower investments in vacation ownership inventory. Such changes were partially offset by (i) the timing of payments of accounts payable and accrued expenses and (ii) increased other current assets related to deferred commission costs in connection with the aforementioned deferred revenue from VOI sales.

 

 

During 2007, we generated $155 million less cash from operating activities as compared to 2006, which principally reflects (i) higher investments in vacation ownership contract receivables and inventory, (ii) timing of payments of accounts payable and accrued expenses and (iii) increased income tax payments. Such changes were partially offset by (i) increased deferred income taxes attributable to higher VOI sales, (ii) lower prepaid activity primarily due to completed marketing programs at our vacation exchange and rentals business, as well as lower prepaid sales commissions within our vacation ownership business, (iii) higher income before cumulative effect of accounting change and (iv) a decrease within other current assets primarily due to the timing of collections on non-trade receivables. Vacation ownership contract receivables are expected to continue to increase during 2008 due to growth in VOI sales. The growth in vacation ownership receivables will be partially funded by net proceeds received from secured borrowings.

 

 

During the nine months ended September 30, 2007, we generated $110 million less cash from operating activities as compared to the same period in 2006, which principally reflects (i) higher investments in vacation ownership contract receivables, (ii) timing of payments of accounts payable and accrued expenses and (iii) increased income tax payments. Such changes were partially offset by (i) increased deferred income taxes attributable to higher VOI sales, (ii) lower prepaid activity primarily due to completed marketing programs at our vacation ownership and vacation exchange and rentals businesses, as well as the recognition of previously deferred sales commissions within our vacation ownership business, (iii) increased cash received in connection with advanced bookings in arrival based business within our vacation exchange and rentals business, (iv) an increase in our provision for loan losses primarily due to higher VOI sales and (v) higher income before cumulative effect of accounting change. Vacation ownership contract receivables are expected to increase for the remainder of 2007 due to growth in VOI sales. The growth in vacation ownership receivables will be partially funded by net proceeds received from secured borrowings.

 

 

During the six months ended June 30, 2007, we generated $111 million less cash from operating activities as compared to the same period in 2006, which principally reflects (i) higher investments in vacation ownership contract receivables and inventory and (ii) less cash received in connection with advanced bookings in arrival based business within our vacation exchange and rentals business for which the revenue recognition is deferred. Such change was partially offset by increased deferred income taxes primarily attributable to higher VOI sales. Inventory and vacation ownership contract receivables are expected to increase for the remainder of 2007 due to growth in VOI sales. The growth in vacation ownership receivables will be partially funded by net proceeds received from secured borrowings.

 

 

During the three months ended March 31, 2007, we used $81 million more cash from operating activities as compared to the same period in 2006. Such change principally reflects higher investments in inventory and vacation ownership contract receivables, partially offset by lower payments of prepaid expenses due to timing and higher cash received in connection with VOI sales for which the revenue recognition is deferred. Inventory and vacation ownership contract receivables are expected to increase for the remainder of 2007 due to growth in VOI sales. The growth in vacation ownership receivables will be partially funded by net proceeds received from secured borrowings.

 

 

During 2006, we generated $327 million less cash from operating activities as compared to 2005. Such change principally reflects a net decrease relating to higher investments in inventory and vacation ownership contract receivables as well as increased prepaid expense, partially offset by favorable timing of accounts payable and accrued expenses.