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This excerpt taken from the WYN 10-K filed Mar 7, 2007. Other
Guarantees/Indemnifications
In the normal course of business, the Company’s vacation
ownership business provides guarantees to certain owners’
associations for funds required to operate and maintain vacation
ownership properties in excess of assessments collected from
owners of the vacation ownership interests. The Company may be
required to fund such excess as a result of unsold Company-owned
vacation ownership interests or failure by owners to pay such
assessments. These guarantees extend for the duration of the
underlying subsidy agreements (which generally approximate one
year and are renewable on an annual basis) or until a stipulated
percentage (typically 80% or higher) of related vacation
ownership interests are sold. The maximum potential future
payments that the Company could be required to make under these
guarantees was approximately $230 million as of
December 31, 2006. The Company would only be required to
pay this maximum amount if none of the owners assessed paid
their assessments. Any assessments collected from the owners of
the vacation ownership interests would reduce the maximum
potential amount of future payments to be made by the Company.
Additionally, should the Company be required to fund the deficit
through the payment of any owners’ assessments under these
guarantees, the Company would be permitted access to the
property for its own use and may use that property to engage in
revenue-producing activities, such as marketing or rental.
Historically, the Company has not been required to make material
payments under these guarantees, as the fees collected from
owners of vacation ownership interests have been sufficient to
support the operation and maintenance of the vacation ownership
properties. As of December 31, 2006, the liability recorded
by the Company in connection with these guarantees was
$14 million.
Table of Contents
The components of accumulated other comprehensive income are as
follows:
The Company has a stock-based compensation plan available to
grant non-qualified stock options, incentive stock options,
SSARs, restricted stock, restricted stock units
(“RSUs”) and other stock or cash-based awards to key
employees, non-employee directors, advisors and consultants.
Under the Wyndham Worldwide Corporation 2006 Equity and
Incentive Plan, which was approved by Cendant, the sole
shareholder, and became effective on July 12, 2006, a
maximum of 43.5 million shares of common stock may be
awarded. As of December 31, 2006, approximately
17 million shares of availability remained.
This excerpt taken from the WYN 8-K filed Jul 19, 2006. Other Guarantees/Indemnifications In the normal course of business, the Company’s vacation ownership business provides guarantees to certain owners’ associations for funds required to operate and maintain vacation ownership properties in excess of assessments collected from owners of the vacation ownership interests. The Company may be required to fund such excess as a result of unsold Company-owned vacation ownership interests or failure by owners to pay such assessments. These guarantees extend for the duration of the underlying subsidy agreements (which generally approximate one year and are renewable on an annual basis) or until a stipulated percentage (typically 80% or higher) of related vacation ownership interests are sold. The maximum potential future payments that the Company could be required to make under these guarantees was approximately $175 million as of December 31, 2005. The Company would only be required to pay this maximum amount if none of the owners assessed paid their assessments. Any assessments collected from the owners of the vacation ownership interests would reduce the maximum potential amount of future payments to be made by the Company. Additionally, should the Company be required to fund the deficit through the payment of any owners’ assessments under these guarantees, the Company would be permitted access to the property for its own use and may use that property to engage in revenue-producing activities, such as marketing or rental. Historically, the Company has not been required to make material payments under these guarantees, as the fees collected from owners of vacation ownership interests have been sufficient to support the operation and maintenance of the vacation ownership properties. As of December 31, 2005, the liability recorded by the Company in connection with these guarantees was $11 million.
The components of accumulated other comprehensive income are as follows:
As of December 31, 2005, all equity awards (stock options and restricted stock units (“RSUs”)) held by Company employees were granted by Cendant in Cendant common stock. At the time of separation, Cendant anticipates equitably adjusting a portion of its outstanding equity awards and, as a result, the Company expects to grant one equity award in Wyndham Worldwide common stock for every five equity awards outstanding in Cendant common stock. | EXCERPTS ON THIS PAGE:
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