Wyndham Results

Wyndham Worldwide Reports First Quarter 2017 Results

First quarter revenues were $1.3 billion, up 1% compared with the prior year period.

Wyndham

Wyndham Worldwide Corporation (NYSE:  WYN) today announced results for the three months ended March 31, 2017.

FIRST QUARTER 2017 OPERATING RESULTS

First quarter revenues were $1.3 billion, up 1% compared with the prior year period.

Net income for the first quarter of 2017 was $141 million compared with $96 million for the first quarter of 2016. Diluted earnings per share (EPS) were $1.33 compared with $0.84 for the prior year period. Adjusted net income for the first quarter of 2017, which excludes charges and gains in 2017 and charges in 2016 as detailed in Table 7 of this press release, was $120 million compared with $127 millionfor the first quarter of 2016, primarily reflecting a higher provision for loan losses and benefits in the prior-year period related to business interruption claims that were absent in the first quarter of 2017. Adjusted diluted EPS was $1.14 compared with $1.12 per share in the prior year period, reflecting the benefit of the Company's share repurchase program.      

First quarter EBITDA was $266 million, compared with $267 million in the prior year period. Adjusted EBITDA, which excludes charges in both 2017 and 2016 as detailed in Table 8 of this press release, was $278 million, compared with $291 million in the prior year period, primarily reflecting a higher provision for loan losses and benefits in the prior-year period related to business interruption claims that were absent in the first quarter of 2017.  

"Our first quarter results were right in line with our expectations," said Stephen P. Holmes, chairman and CEO. "We're excited by the progress we're making in connecting our customers and brands through Wyndham Rewards to enhance customer acquisition, experience and retention. We expect this to result in stronger growth and greater long-term value for our shareholders this year and for years to come. 

"In addition, we are pleased to welcome Mike Brown as the new CEO and president of our vacation ownership business," continued Mr. Holmes. "Mike is a 25-year hospitality industry veteran and brings an ideal combination of strategic vision, operational expertise, and industry knowledge to the role. I am confident that Mike is the right leader to take Wyndham Vacation Ownership to the next level."

For the three months ended March 31, 2017, net cash provided by operating activities was $238 million, compared with $261 million in the prior year period. The decrease primarily reflects changes in the timing of inventory purchases.

Free cash flow was $203 million for the three months ended March 31, 2017, compared with $218 million for the same period in 2016, primarily reflecting the changes in net cash provided by operating activities. The Company defines free cash flow as net cash provided by operating activities less capital expenditures.

FIRST QUARTER 2017 BUSINESS UNIT RESULTS

Hotel Group

Revenues were $298 million in the first quarter of 2017, compared with $295 million in the first quarter of 2016.  EBITDA was $85 million in the first quarter compared with $84 million in the prior-year quarter, growing 2% on a currency-neutral basis.  Results reflect higher franchise fees and growth in the Wyndham Rewards credit card program, partially offset by lower occupancy at the Company's owned hotel in Puerto Rico due to consumer concerns about the Zika virus. 

First quarter domestic same-store RevPAR increased 1.7% compared with the first quarter of 2016.  In constant currency, total system-wide same-store RevPAR increased 2.2%.

As of March 31, 2017, the Company's hotel system consisted of approximately 8,100 properties and 699,800 rooms, a 3.0% net room increase compared with the first quarter of 2016.  The development pipeline increased to 1,130 hotels and approximately 143,100 rooms, of which 59% were international and 68% were new construction. 

Destination Network 

Revenues were $391 million in the first quarter of 2017, compared with $385 million in the first quarter of 2016, an increase of 2%.  In constant currency and excluding acquisitions, revenues increased 1%. 

Vacation rental revenues were $184 million compared with $183 million in the prior year quarter.  In constant currency and excluding acquisitions, vacation rental revenues increased 1%, reflecting a 2.8% increase in transaction volume partially offset by a 2.0% decline in the average net price per rental.  Transaction volume benefited from capacity increases across the Company's U.K.-based cottages and parks brands and Denmark-based Novasol brand, partially offset by the impact from the timing of the Easter holiday.  Average net price per rental declined due to the mix impact of growth in the Company's more modestly priced brands and the timing of the Easter holiday.

Exchange revenues were $183 million compared with $182 million in the prior year quarter.  In constant currency, exchange revenue per member increased 0.8% and the average number of members declined 0.6%.                                                                                                                   

EBITDA was $102 million in the first quarter of 2017, including $2 million from acquisitions.  This compares with first quarter 2016 EBITDA of $81 million or adjusted EBITDA of $105 million.  2016 adjusted EBITDA excluded a $24 million loss related to a currency devaluation.  First quarter year-over-year EBITDA and adjusted EBITDA comparisons reflect the absence of a benefit of $3 million from business disruption claims received in the first quarter of 2016, as well as the unfavorable impact of the timing of the Easter holiday. 

Vacation Ownership 

Revenues were $648 million in the first quarter of 2017, compared with $641 million in the first quarter of 2016.  

Gross VOI sales increased 3% in the first quarter of 2017.  Volume per guest (VPG) was up 4.9%, reflecting both a higher average close rate and transaction size.  Tour flow declined 1.7% due to the closure of sales offices as part of a restructuring in the second half of last year.

EBITDA was $118 million in the first quarter of 2017 compared with $136 million in the prior year quarter. Adjusted EBITDA was $124 million in the first quarter of 2017.  First quarter year-over-year EBITDA and adjusted EBITDA results reflect higher gross VOI sales offset by a higher provision for loan losses and the absence of a $6 million benefit from business interruption insurance claims received in the first quarter of 2016. 

OTHER ITEMS 

  • The Company repurchased 1.9 million shares of common stock for $150 million during the first quarter of 2017 at an average price of $80.93.  From April 1 through April 25, 2017, the Company repurchased an additional 0.4 million shares for $36 million.  
  • Net interest expense in the first quarter of 2017 was $31 million, flat compared with the first quarter of 2016. 
  • Depreciation and amortization in the first quarter of 2017 was $63 million, compared with $62 million in the first quarter of 2016.  

Balance Sheet Information as of March 31, 2017: 

  • Cash and cash equivalents of $222 million, compared with $185 million at December 31, 2016
  • Vacation ownership contract receivables, net of $2.8 billion, unchanged from December 31, 2016
  • Vacation ownership and other inventory of $1.4 billion, unchanged from December 31, 2016
  • Securitized vacation ownership debt of $2.1 billion, unchanged from December 31, 2016
  • Long-term debt of $3.6 billion, compared with $3.4 billion at December 31, 2016. The remaining borrowing capacity on the revolving credit facility, net of commercial paper borrowings, was $1.3 billion as of March 31, 2017, compared with $1.1 billion at December 31, 2016.

OUTLOOK 

The Company provides the following guidance for the full year 2017:

  • Reiterates revenues of approximately $5.80 billion to $5.95 billion
  • Updates adjusted net income to approximately $631 million to $652 million from $637 million to $658 million, reflecting higher interest expense from a new long-term debt issuance in the first quarter 2017 that replaced lower cost borrowings 
  • Reiterates adjusted EBITDA of approximately $1.41 billion to $1.44 billion
  • Updates adjusted diluted EPS to approximately $5.98 to $6.18 based on a diluted share count of 105.5 million from $5.90 to $6.10based on a diluted share count of 108 million 

In determining adjusted net income, adjusted EBITDA and adjusted EPS, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. A description of the adjustments that have been applicable for the reported periods in determining adjusted net income, adjusted EBITDA and adjusted EPS are reflected in Tables 7 and 8 of this press release. The Company is providing an outlook for net income, EBITDA and EPS only on a non-GAAP basis because the Company is unable to predict with reasonable certainty the totality or ultimate outcome or occurrence of these adjustments or other potential adjustments that may arise in the future during the outlook period, which can be dependent on future events that may not be reliably predicted. See Table 10 for certain non-GAAP information concerning the outlook period.

ABOUT WYNDHAM WORLDWIDE 

Wyndham Worldwide (NYSE:  WYN) is one of the largest global hospitality companies, providing travelers with access to a collection of trusted hospitality brands in hotels, vacation ownership, and unique accommodations including vacation exchange, holiday parks, and managed home rentals. With a collective inventory of nearly 130,000 places to stay across more than 110 countries on six continents, Wyndham Worldwide and its 38,000 associates welcomes people to experience travel the way they want. This is enhanced by Wyndham Rewards®, the Company's re-imagined guest loyalty program across its businesses, which is making it simpler for members to earn more rewards and redeem their points faster. 

 

Wyndham Worldwide Corporation

Earnings Release Schedules

Quarter One - March 31, 2017

Table of Contents

Table No.

Consolidated Statements of Income (Unaudited)

1

Operating Results of Reportable Segments

2

Operating Statistics

3

Condensed Consolidated Statements of Cash Flows and Reconciliation of Free Cash Flows (Unaudited)

4

Revenue Detail by Reportable Segment

5

Brand System Details

6

Non-GAAP Reconciliation of Adjusted Net Income and EPS

7

Non-GAAP Reconciliation of Adjusted EBITDA by Reportable Segment

8

Non-GAAP Reconciliation of Gross VOI Sales

9

Non-GAAP Reconciliation of 2017 Outlook

10

Non-GAAP Reconciliation - Constant Currency, Currency Neutral and Acquisitions

11

Schedule of Debt

12

 

Table 1

Wyndham Worldwide Corporation

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

 Three Months Ended 

 March 31, 

2017

2016

Net revenues

Service and membership fees

$

636

$

634

Vacation ownership interest sales

351

342

Franchise fees

141

138

Consumer financing

111

107

Other

80

82

Net revenues

1,319

1,303

Expenses

Operating

601

613

Cost of vacation ownership interests 

36

37

Consumer financing interest

18

18

Marketing and reservation

195

192

General and administrative

193

186

Asset impairments

5

-

Restructuring

7

-

Depreciation and amortization

63

62

Total expenses

1,118

1,108

Operating income

201

195

Other (income)/expense, net

(2)

(10)

Interest expense

33

33

Early extinguishment of debt

-

11

Interest income

(2)

(2)

Income before income taxes

172

163

Provision for income taxes

31

67

Net income

$

141

$

96

Earnings per share

Basic

$

1.34

$

0.85

Diluted

1.33

0.84

Weighted average shares outstanding

Basic

105

113

Diluted

106

114

 

Table 2

Wyndham Worldwide Corporation

OPERATING RESULTS OF REPORTABLE SEGMENTS

(In millions)

In addition to other measures, management evaluates the operating results of each of its reportable segments based upon net revenues and "EBITDA", which is defined as net income before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) and income taxes, each of which is presented on the Company's Consolidated Statements of Income.  The Company also uses adjusted EBITDA as a financial measure of its operating performance.  The Company believes that EBITDA and adjusted EBITDA are useful measures of assessing performance of the Company and for the Company's segments which, when considered with GAAP measures, give a more complete understanding of its operating performance and assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods, by adjusting for certain items which may be recurring or nonrecurring and which in our view do not necessarily reflect ongoing operating performance. We also internally use these measures to assess our operating performance, both in absolute terms and in comparison to other companies, and in evaluating or making selected compensation decisions.  These supplemental disclosures are in addition to GAAP reported measures.  The Company's presentation of EBITDA and adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

The following tables summarize net revenues and EBITDA for the Company's reportable segments, as well as reconcile net income to EBITDA for the three months ended March 31, 2017 and 2016:

Three Months Ended March 31, 

2017

2016

 Net Revenues 

 EBITDA 

 Net Revenues 

 EBITDA 

Hotel Group

$

298

$

85

$

295

$

84

Destination Network

391

102

385

81

Vacation Ownership

648

118

641

136

     Total Reportable Segments

1,337

305

1,321

301

Corporate and Other (a)

(18)

(39)

(18)

(34)

     Total Company

$

1,319

$

266

$

1,303

$

267

Reconciliation of net income to EBITDA

 Three Months Ended March 31,  

2017

2016

Net income

$

141

$

96

Provision for income taxes

31

67

Depreciation and amortization

63

62

Interest expense

33

33

Early extinguishment of debt

-

11

Interest income

(2)

(2)

EBITDA

$

266

$

267

(a)  Includes the elimination of transactions between segments.  

The following tables summarize net revenues and adjusted EBITDA for the Company's reportable segments for the three months ended March 31, 2017 and 2016 (for a description of adjustments and reconciliation by segment, see Table 8):

Three Months Ended March 31, 

2017

2016

Adjusted 

Adjusted 

 Net Revenues 

 EBITDA 

 Net Revenues 

 EBITDA 

Hotel Group

$

298

$

85

$

295

$

84

Destination Network

391

102

385

105

Vacation Ownership

648

124

641

136

     Total Reportable Segments

1,337

311

1,321

325

Corporate and Other (a)

(18)

(33)

(18)

(34)

     Total Company

$

1,319

$

278

$

1,303

$

291

 

Table 3

(1 of 2)

Wyndham Worldwide Corporation

OPERATING STATISTICS

The following operating statistics are the drivers of our revenues and therefore provide an enhanced understanding of our businesses:

Year

Q1

Q2

Q3

Q4

Full Year

Hotel Group(a)

Number of Rooms 

2017

699,800

 N/A 

 N/A 

 N/A 

 N/A 

2016

679,100

683,300

689,800

697,600

 N/A 

2015

667,400

668,500

671,900

678,000

 N/A 

2014

646,900

650,200

655,300

660,800

 N/A 

RevPAR

2017

$

31.73

$

 N/A 

$

 N/A 

$

 N/A 

$

 N/A 

2016

$

31.59

$

39.10

$

43.04

$

32.92

$

36.67

2015

$

32.84

$

39.82

$

43.34

$

32.98

$

37.26

2014

$

32.30

$

40.11

$

43.71

$

34.06

$

37.57

Destination Network

Average Number of Members (in 000s)

2017

3,817

 N/A 

 N/A 

 N/A 

 N/A 

2016

3,841

3,857

3,868

3,843

3,852

2015

3,822

3,831

3,835

3,836

3,831

2014

3,727

3,748

3,777

3,808

3,765

Exchange Revenue Per Member

2017

$

192.01

$

 N/A 

$

 N/A 

$

 N/A 

$

 N/A 

2016

$

189.78

$

164.61

$

164.39

$

151.19

$

167.48

2015

$

194.06

$

167.81

$

163.38

$

152.00

$

169.29

2014

$

200.78

$

179.17

$

171.77

$

157.24

$

177.12

Vacation Rental Transactions (in 000s) (a) (b)

2017

538

 N/A 

 N/A 

 N/A 

 N/A 

2016

500

409

508

350

1,767

2015

459

390

462

319

1,630

2014

429

376

455

293

1,552

Average Net Price Per Vacation Rental(a) (b)

2017

$

343.07

$

 N/A 

$

 N/A 

$

 N/A 

$

 N/A 

2016

$

366.08

$

492.83

$

599.59

$

430.14

$

475.24

2015

$

361.20

$

513.14

$

642.00

$

452.19

$

494.92

2014

$

410.04

$

577.13

$

727.40

$

492.25

$

558.95

Vacation Ownership (a)

Gross Vacation Ownership Interest (VOI) Sales (in 000s) (c)

2017

$

439,000

$

 N/A 

$

 N/A 

$

 N/A 

$

 N/A 

2016

$

428,000

$

518,000

$

564,000

$

502,000

$

2,012,000

2015

$

390,000

$

502,000

$

565,000

$

507,000

$

1,965,000

2014

$

410,000

$

496,000

$

513,000

$

470,000

$

1,889,000

Tours (in 000s)

2017

176

 N/A 

 N/A 

 N/A 

 N/A 

2016

179

213

230

197

819

2015

168

206

227

200

801

2014

170

208

225

191

794

Volume Per Guest (VPG)

2017

$

2,354

$

 N/A 

$

 N/A 

$

 N/A 

$

 N/A 

2016

$

2,244

$

2,328

$

2,320

$

2,399

$

2,324

2015

$

2,177

$

2,353

$

2,354

$

2,390

$

2,326

2014

$

2,272

$

2,280

$

2,158

$

2,336

$

2,257

Note: Full year amounts may not add across due to rounding.

(a)

Includes the impact of acquisitions/dispositions from the acquisition/disposition dates forward. Therefore, the operating statistics are not presented on a comparable basis.

(b)

The destination network operating statistics excluding our U.K.-based camping business sold in Q4 2014 are as follows:

Year

Q1

Q2

Q3

Q4

Full Year

Vacation Rental Transactions (in 000s)

2014

429

367

431

292

1,518

Average Net Price Per Vacation Rental

2014

$

410.02

$

578.02

$

700.56

$

492.64

$

548.93

(c)

Includes Gross VOI sales under the Company's Wyndham Asset Affiliate Model (WAAM) Just-in-Time. (See Table 9 for a reconciliation of Gross VOI sales to vacation ownership interest sales).

ADDITIONAL DATA

Year

Q1

Q2

Q3

Q4

Full Year

Hotel Group

Number of Properties

2017

8,080

 N/A 

 N/A 

 N/A 

 N/A 

2016

7,830

7,880

7,930

8,040

 N/A 

2015

7,670

7,700

7,760

7,810

 N/A 

2014

7,500

7,540

7,590

7,650

 N/A 

Vacation Ownership

Provision for Loan Losses (in 000s) (*) 

2017

$

85,000

$

 N/A 

$

 N/A 

$

 N/A 

$

 N/A 

2016

$

63,000

$

90,000

$

104,000

$

86,000

$

342,000

2015

$

46,000

$

60,000

$

78,000

$

64,000

$

248,000

2014

$

60,000

$

70,000

$

70,000

$

60,000

$

260,000

Note: Full year amounts may not add across due to rounding.

(*)

Represents provision for estimated losses on vacation ownership contract receivables originated during the period, which is recorded as a contra revenue to vacation ownership interest sales on the Consolidated Statements of Income.

 

Table 3

(2 of 2)

Wyndham Worldwide Corporation

OPERATING STATISTICS

GLOSSARY OF TERMS

Hotel Group

Number of Rooms: Represents the number of rooms at hotel group properties at the end of the period which are either (i) under franchise and/or management agreements, or company owned and (ii) properties under affiliation agreements for which the Company receives a fee for reservation and/or other services provided.  

Average Occupancy Rate: Represents the percentage of available rooms occupied during the period.

Average Daily Rate (ADR): Represents the average rate charged for renting a lodging room for one day.  

RevPAR:  Represents revenue per available room and is calculated by multiplying average occupancy rate by ADR. Comparable RevPAR represents RevPAR of hotels which are included in both periods.

Destination Network

Average Number of Members:  Represents members in our vacation exchange programs who paid annual membership dues as of the end of the period or who are within the allowed grace period. For additional fees, such participants are entitled to exchange intervals for intervals at other properties affiliated with the Company's vacation exchange business. In addition, certain participants may exchange intervals for other leisure-related services and products.

Exchange Revenue Per Member: Represents total annualized revenues generated from fees associated with memberships, exchange transactions, member-related rentals and other servicing for the period divided by the average number of vacation exchange members during the period.  

Vacation Rental Transactions:  Represents the number of transactions that are generated in connection with customers booking their vacation rental stays through one of our vacation brands. One rental transaction is recorded for each standard one-week rental.

Average Net Price Per Vacation Rental: Represents the net rental price generated from renting vacation properties to customers and other related rental servicing fees divided by the number of vacation rental transactions.

Vacation Ownership

Gross Vacation Ownership Interest Sales: Represents sales of vacation ownership interest (VOIs), including WAAM sales, before the net effect of percentage-of-completion accounting and loan loss provisions. We believe gross VOI sales provide an enhanced understanding of the performance of our vacation ownership business because it directly measures the sales volume of this business during a given reporting period. See Table 9 for a reconciliation of Gross VOI sales to vacation ownership interest sales. 

Tours: Represents the number of tours taken by guests in our efforts to sell VOIs.

Volume per Guest (VPG): Represents Gross VOI sales (excluding tele-sales upgrades, which are non-tour upgrade sales) divided by the number of tours.  The Company has excluded non-tour upgrade sales in the calculation of VPG because non-tour upgrade sales are generated by a different marketing channel.  See Table 9 for a detail of tele-sales upgrades for 2014-2017.  

General

Constant Currency: Represents a comparison eliminating the effects of foreign exchange rate fluctuations between periods (foreign currency translation).

Currency-Neutral: Represents a comparison eliminating the effects of foreign exchange rate fluctuations between periods (foreign currency translation) and the impact caused by any foreign exchange related activities (i.e., hedges, balance sheet remeasurements and/or adjustments).

 

Table 4

Wyndham Worldwide Corporation

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND RECONCILIATION OF FREE CASH FLOWS

(In millions)

(Unaudited)

Condensed Consolidated Statements of Cash Flows:

Three Months Ended March 31, 

2017

2016

Net cash provided by operating activities

$

238

$

261

Net cash used in investing activities

(79)

(90)

Net cash used in financing activities

(124)

(27)

Effect of changes in exchange rates on cash and cash equivalents

2

3

Net increase in cash and cash equivalents

$

37

$

147

Free Cash Flow:

We define free cash flow to be net cash provided by operating activities less property and equipment additions which we also refer to as capital expenditures.

We believe free cash flow to be a useful operating performance measure to evaluate the ability of our operations to generate cash for uses other than capital expenditures and, after debt service and other obligations, our ability to grow our business through acquisitions, development advances and equity investments, as well as our ability to return cash to shareholders through dividends and share repurchases. A limitation of using free cash flow versus the GAAP measures of net cash provided by operating activities, net cash used in investing activities and net cash used in financing activities as a means for evaluating Wyndham Worldwide is that free cash flow does not represent the total cash movement for the period as detailed in the consolidated statement of cash flows.

The following table provides more details on the GAAP financial measure that is most directly comparable to the non-GAAP financial measure and the related reconciliation between these financial measures:

Three Months Ended March 31, 

2017

2016

Net cash provided by operating activities

$

238

$

261

Less: Property and equipment additions

(35)

(43)

Free cash flow

$

203

$

218

 

Table 5

Wyndham Worldwide Corporation

REVENUE DETAIL BY REPORTABLE SEGMENT

(In millions)

2017

2016

 Q1 

 Q2 

 Q3 

 Q4 

 Year 

 Q1 

 Q2 

 Q3 

 Q4 

 Year 

Hotel Group

Royalties and Franchise Fees

$

79

 N/A 

 N/A 

 N/A 

 N/A 

$

74

$

94

$

105

$

94

$

367

Marketing, Reservation and Wyndham Rewards Revenues (a)

83

 N/A 

 N/A 

 N/A 

 N/A 

83

103

125

92

405

Hotel Management Reimbursable Revenues (b)

66

 N/A 

 N/A 

 N/A 

 N/A 

67

71

67

65

271

Intersegment Trademark Fees

13

 N/A 

 N/A 

 N/A 

 N/A 

13

15

16

14

56

Owned Hotel Revenues

23

 N/A 

 N/A 

 N/A 

 N/A 

27

19

17

17

81

Ancillary Revenues (c)

34

 N/A 

 N/A 

 N/A 

 N/A 

31

32

34

34

129

Total Hotel Group

298

 N/A 

 N/A 

 N/A 

 N/A 

295

334

364

316

1,309

Destination Network

Exchange Revenues

183

 N/A 

 N/A 

 N/A 

 N/A 

182

159

159

145

645

Rental Revenues

184

 N/A 

 N/A 

 N/A 

 N/A 

183

202

304

151

840

Ancillary Revenues (d)

24

 N/A 

 N/A 

 N/A 

 N/A 

20

23

23

21

86

Total Destination Network

391

 N/A 

 N/A 

 N/A 

 N/A 

385

384

486

317

1,571

Vacation Ownership

Vacation Ownership Interest Sales

351

 N/A 

 N/A 

 N/A 

 N/A 

342

409

441

415

1,606

Consumer Financing

111

 N/A 

 N/A 

 N/A 

 N/A 

107

108

112

113

440

Property Management Fees and Reimbursable Revenues

175

 N/A 

 N/A 

 N/A 

 N/A 

164

161

168

168

660

WAAM Fee-for-Service Commissions

2

 N/A 

 N/A 

 N/A 

 N/A 

17

16

13

-

46

Ancillary Revenues (e)

9

 N/A 

 N/A 

 N/A 

 N/A 

11

11

10

9

42

Total Vacation Ownership

648

 N/A 

 N/A 

 N/A 

 N/A 

641

705

744

705

2,794

Total Reportable Segments

$

1,337

 N/A 

 N/A 

 N/A 

 N/A 

$

1,321

$

1,423

$

1,594

$

1,338

$

5,674

2015

2014

 Q1 

 Q2 

 Q3 

 Q4 

 Year 

 Q1 

 Q2 

 Q3 

 Q4 

 Year 

Hotel Group

Royalties and Franchise Fees

$

74

$

96

$

103

$

87

$

361

$

68

$

88

$

100

$

83

$

339

Marketing, Reservation and Wyndham Rewards Revenues (a)

96

108

112

92

407

76

101

117

91

385

Hotel Management Reimbursable Revenues (b)

61

71

73

68

273

37

39

39

39

154

Intersegment Trademark Fees

12

15

16

15

57

9

11

11

10

41

Owned Hotel Revenues

25

20

16

19

79

24

20

18

20

81

Ancillary Revenues (c)

24

24

37

33

120

23

24

30

24

101

Total Hotel Group

292

334

357

314

1,297

237

283

315

267

1,101

Destination Network

Exchange Revenues

185

161

157

146

649

187

168

162

150

667

Rental Revenues

166

200

296

144

807

176

217

331

144

868

Ancillary Revenues (d)

18

22

23

20

82

16

17

19

17

69

Total Destination Network

369

383

476

310

1,538

379

402

512

311

1,604

Vacation Ownership

Vacation Ownership Interest Sales

336

417

448

403

1,604

303

382

415

385

1,485

Consumer Financing

104

105

108

109

427

105

106

108

108

427

Property Management Fees and Reimbursable Revenues

153

149

159

155

615

143

145

150

142

581

WAAM Fee-for-Service Commissions

12

19

23

28

83

33

30

18

16

98

Ancillary Revenues (e)

12

9

12

11

43

9

10

13

17

47

Total Vacation Ownership

617

699

750

706

2,772

593

673

704

668

2,638

Total Reportable Segments

$

1,278

$

1,416

$

1,583

$

1,330

$

5,607

$

1,209

$

1,358

$

1,531

$

1,246

$

5,343

Note: Full year amounts may not add across due to rounding.

(a)

Marketing and reservation revenues represent fees the Company receives from franchised and managed hotels that are to be expended for marketing purposes or the operation of a centralized, brand-specific reservation system.  These fees are typically based on a percentage of the gross room revenues of each hotel.  Wyndham Rewards revenues represent fees the Company receives relating to its loyalty program.

(b)

Primarily represents payroll costs in the hotel management business that the Company pays on behalf of property owners and for which it is reimbursed by the property owners. During 2014, reimbursable revenues of $2 million in each of Q1, Q2 and Q3 and $1 million in Q4 were charged to the Company's vacation ownership business and were eliminated in consolidation. 

(c)

Primarily includes additional services provided to franchisees and managed properties and fees related to our co-branded credit card program.

(d)

Primarily includes fees generated from programs with affiliated resorts and homeowners.

(e)

Primarily includes revenues associated with bonus points/credits that are provided as purchase incentives on VOI sales and fees generated from other non-core operations.

 

 

Table 6

Wyndham Worldwide Corporation

BRAND SYSTEM DETAILS

As of and For the Three Months Ended March 31, 2017

Brand

Number of 

Properties

Number of Rooms

Average 

Occupancy Rate

Average Daily 

Rate (ADR)

Average Revenue 

Per Available 

Room (RevPAR)

Hotel Group

Super 8 

2,839

179,268

52.7%

$44.35

$23.39

Days Inn 

1,786

142,872

45.2%

$65.14

$29.44

Ramada 

862

120,647

50.0%

$69.58

$34.82

Wyndham Hotels and Resorts

254

55,694

53.1%

$101.23

$53.75

Howard Johnson 

367

42,318

45.8%

$57.08

$26.12

Baymont

437

34,519

46.1%

$66.85

$30.79

Travelodge 

406

29,725

43.4%

$66.41

$28.85

Microtel Inns & Suites by Wyndham

336

24,226

52.1%

$65.65

$34.21

Knights Inn 

370

22,589

41.5%

$48.78

$20.25

TRYP by Wyndham

115

16,223

58.0%

$73.59

$42.67

Wingate by Wyndham

153

14,073

57.1%

$85.49

$48.79

Hawthorn Suites by Wyndham

108

10,633

61.6%

$82.74

$50.98

Dolce

21

4,747

46.8%

$154.48

$72.36

Dazzler

12

1,525

63.4%

$91.84

$58.25

Esplendor

10

698

66.1%

$92.14

$60.90

 

         Total Hotel Group

8,076

699,757

49.5%

$64.04

$31.73

Vacation Ownership

Wyndham Vacation Ownership resorts

221

24,859

N/A

N/A

N/A

 

         Total Wyndham Worldwide

8,297

724,616

As of and For the Three Months Ended March 31, 2016

Brand

Number of 

Properties

Number of Rooms

Average 

Occupancy Rate

Average Daily 

Rate (ADR)

Average Revenue 

Per Available 

Room (RevPAR)

Hotel Group

Super 8 

2,665

170,454

51.5%

$45.73

$23.54

Days Inn 

1,791

143,212

44.3%

$63.81

$28.28

Ramada 

837

117,409

49.0%

$73.76

$36.12

Wyndham Hotels and Resorts

228

49,952

54.7%

$103.78

$56.73

Howard Johnson 

381

41,555

44.1%

$59.74

$26.33

Baymont

416

33,070

44.9%

$66.07

$29.66

Travelodge 

406

29,760

45.3%

$63.18

$28.63

Microtel Inns & Suites by Wyndham

333

24,045

51.1%

$63.64

$32.52

Knights Inn 

381

23,258

41.5%

$48.76

$20.22

TRYP by Wyndham

120

17,274

54.8%

$72.93

$39.97

Wingate by Wyndham

149

13,610

56.3%

$86.52

$48.70

Hawthorn Suites by Wyndham

105

10,466

62.3%

$82.76

$51.57

Dolce

22

5,080

45.5%

$152.13

$69.17

 

        Total Hotel Group

7,834

679,145

48.6%

$64.93

$31.59

Vacation Ownership

Wyndham Vacation Ownership resorts

216

24,442

N/A

N/A

N/A

 

        Total Wyndham Worldwide

8,050

703,587

Note: A glossary of terms is included in Table 3 (2 of 2); RevPAR may not recalculate by multiplying average occupancy rate by ADR due to rounding.

 

Table 7

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION OF ADJUSTED NET INCOME AND EPS

(In millions, except per share data)

Location on Consolidated 

Statements of Income

Three Months Ended March 31, 

2017

2016

Diluted weighted average shares outstanding

106

114

Diluted EPS

$

1.33

$

0.84

Net income

$

141

$

96

Adjustments:

 

        Restructuring costs (a)

Restructuring

7

-

 

        Asset impairments (b)

Asset impairments

5

-

 

        Venezuela currency devaluation (c)

Operating

-

24

 

        Early extinguishment of debt (d)

Early extinguishment of debt

-

11

 

Total adjustments before tax

12

35

 

        Income tax (benefit)/expense (e) (f)

Provision for income taxes

(33)

(4)

Total adjustments after tax

(21)

31

Adjustments - EPS impact

$

(0.19)

$

0.27

Adjusted Net income

$

120

$

127

Adjusted diluted EPS

$

1.14

$

1.12

Note: Amounts may not add due to rounding.

 

 

(a)

Relates to expenses associated with restructuring initiatives at the Company's corporate operations which focused on rationalizing its sourcing function and outsourcing certain information technology functions as well at its Hotel Group segment which primarily focused on realigning its brand operations.

(b)

Represents a non-cash impairment charge related to the write-down of assets resulting from the decision to abandon a new product initiative at the Company's vacation ownership business.

(c)

Represents the impact from the devaluation of the exchange rate of Venezuela at the Company's destination network business.

(d)

Represents costs incurred in connection with the Company's early repurchase of its 6.0% senior unsecured notes.

(e)

The amount for 2017 relates to (i) the tax effect of the adjustments and (ii) a tax benefit on foreign currency losses recognized from an internal restructuring.

(f)

The amount for 2016 relates to the tax effect of the adjustments. There was no tax benefit associated with the $24 million Venezuela currency devaluation adjustment.

The above tables reconcile certain non-GAAP financial measures.  The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the income statement in order to assist investors' understanding of the overall impact of such adjustments.  In addition to GAAP financial measures, the Company provides adjusted net income and adjusted EPS financial measures to assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods, by adjusting for certain items which may be recurring or non-recurring and which in our view do not necessarily reflect ongoing performance.  We also internally use these measures to assess our operating performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions.  These supplemental disclosures are in addition to GAAP reported measures.  This non-GAAP reconciliation table should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.

 

 

Table 8

(1 of 3)

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE SEGMENT

(In millions)

Restructuring

Asset

Adjusted

EBITDA

Costs(b)

Impairments (c)

EBITDA

Three months ended March 31, 2017

Hotel Group

$

85

$

1

$

-

$

85

Destination Network

102

-

-

102

Vacation Ownership

118

-

5

124

Total Reportable Segments

305

1

5

311

Corporate and Other (a)

(39)

6

-

(33)

Total Company

$

266

$

7

$

5

$

278

Note: Amounts may not add across due to rounding. 

 

 

(a)

Includes the elimination of transactions between segments.

(b)

Relates to expenses associated with restructuring initiatives at the Company's corporate operations which focused on rationalizing its sourcing function and outsourcing certain information technology functions as well at its Hotel Group segment which primarily focused on realigning its brand operations.

(c)

Represents a non-cash impairment charge related to the write-down of assets resulting from the decision to abandon a new product initiative.

 

 

Table 8

(2 of 3)

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE SEGMENT

(In millions)

Venezuela 

Executive

Bargain

Currency 

Acquisition

Legacy

Restructuring

Contract

Departure

Purchase

Adjusted

EBITDA

Devaluation(b)

Costs(c)

Costs(d)

Costs(e)

Termination(f)

Costs (g)

Gain (h)

EBITDA

Three months ended March 31, 2016

Hotel Group

$

84

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

84

Destination Network

81

24

-

-

-

-

-

-

105

Vacation Ownership

136

-

-

-

-

-

-

-

136

Total Reportable Segments

301

24

-

-

-

-

-

-

325

Corporate and Other (a)

(34)

-

-

-

-

-

-

-

(34)

Total Company

$

267

$

24

$

-

$

-

$

-

$

-

$

-

$

-

$

291

Three months ended June 30, 2016

Hotel Group

$

101

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

101

Destination Network

85

-

1

-

-

-

-

85

Vacation Ownership

187

-

-

-

-

-

-

-

187

Total Reportable Segments

373

-

1

-

-

-

-

-

373

Corporate and Other (a)

(33)

-

-

-

-

-

-

-

(33)

Total Company

$

340

$

-

$

1

$

-

$

-

$

-

$

-

$

-

$

340

Three months ended September 30, 2016

Hotel Group

$

107

$

-

$

-

$

-

$

3

$

7

$

-

$

-

$

117

Destination Network

138

-

-

-

4

-

-

-

142

Vacation Ownership

189

-

-

-

6

-

-

-

195

Total Reportable Segments

434

-

-

-

13

7

-

-

454

Corporate and Other (a)

(32)

-

(1)

1

-

-

-

(31)

Total Company

$

402

$

-

$

-

$

(1)

$

14

$

7

$

-

$

-

$

423

Three months ended December 31, 2016

Hotel Group

$

99

$

-

$

1

$

-

$

(1)

$

-

$

-

$

-

$

99

Destination Network

53

-

1

-

-

-

-

(2)

52

Vacation Ownership

182

-

-

2

-

6

-

191

Total Reportable Segments

334

-

2

-

1

-

6

(2)

342

Corporate and Other (a)

(12)

-

-

(11)

-

-

-

-

(24)

Total Company

$

322

$

-

$

2

$

(11)

$

1

$

-

$

6

$

(2)

$

318

Twelve months ended December 31, 2016

Hotel Group

$

391

$

-

$

1

$

-

$

2

$

7

$

-

$

-

$

401

Destination Network

356

24

1

-

5

-

-

(2)

385

Vacation Ownership

694

-

-

-

8

-

6

-

708

Total Reportable Segments

1,441

24

2

-

15

7

6

(2)

1,494

Corporate and Other (a)

(110)

-

-

(11)

-

-

-

-

(121)

Total Company

$

1,331

$

24

$

2

$

(11)

$

15

$

7

$

6

$

(2)

$

1,373

Note: Amounts may not add across due to rounding. The sum of the quarters may not add down due to rounding.

 

 

(a)

Includes the elimination of transactions between segments.

(b)

Represents the impact from the devaluation of the exchange rate of Venezuela.

(c)

Represents costs related to acquisitions.

(d)

Relates to a benefit from adjustments to certain contingent liabilities from the Company's separation from Cendant.

(e)

Relates to costs incurred due to enhancing organizational efficiency and rationalizing existing facilities across the Company.

(f)

Relates to additional costs associated with the termination of a management contract.

(g)

Represents costs associated with the departure of the chief executive officer at the Company's vacation ownership business. 

(h)

Represents a gain from a bargain purchase on an acquisition of a vacation rentals business.

 

Table 8

(3 of 3)

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE SEGMENT

SHARED-BASED COMPENSATION EXPENSE

(In millions)

The following tables provide detail regarding share-based compensation expense which is included within adjusted EBITDA:

2017

Q1

Q2

Q3

Q4

Full Year

Adjusted EBITDA

$

278

 N/A 

 N/A 

 N/A 

 N/A 

Share-based compensation expense (*)

14

 N/A 

 N/A 

 N/A 

 N/A 

Adjusted EBITDA excluding share-based compensation expense

$

292

 N/A 

 N/A 

 N/A 

 N/A 

2016

Q1

Q2

Q3

Q4

Full Year

Adjusted EBITDA

$

291

$

340

$

423

$

318

$

1,373

Share-based compensation expense (*)

13

20

14

13

61

Adjusted EBITDA excluding share-based compensation expense

$

304

$

360

$

437

$

331

$

1,434

Note: Full year amounts may not add across due to rounding.

(*)

Excludes share-based compensation expenses for which there was no impact on adjusted EBITDA. Such costs amounted to $1 million during Q1 2017. During 2016, such costs amounted to $1 million during Q1, Q2 and Q3, and $4 million during Q4 and $7 million for the full year. The Company believes providing adjusted EBITDA with the additional exclusion of share-based compensation expense assists our investors and management by providing an additional financial measure to evaluate ongoing operations by excluding the variations among companies in timing, amount and reporting of share-based compensation expense, which may differ significantly among companies.

 

 

Table 9

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION OF GROSS VOI SALES

(In millions)

GROSS VOI SALES

We believe gross vacation ownership sales provide an enhanced understanding of the performance of our vacation ownership 

business because it directly measures the sales volume of this business during a given reporting period.

 

 

The following table provides a reconciliation of Gross VOI sales (see Table 3) to vacation ownership interest sales (see Table 5):

Year

2017

Q1

Q2

Q3

Q4

Full Year

Gross VOI sales

$

439

$

 N/A 

$

 N/A 

$

 N/A 

$

 N/A 

Less: Sales under WAAM Fee-for-Service

(3)

 N/A 

 N/A 

 N/A 

 N/A 

Gross VOI sales, net of WAAM Fee-for-Service sales

436

 N/A 

 N/A 

 N/A 

 N/A 

Less: Loan loss provision

(85)

 N/A 

 N/A 

 N/A 

 N/A 

Vacation ownership interest sales

$

351

$

 N/A 

$

 N/A 

$

 N/A 

$

 N/A 

2016

Gross VOI sales

$

428

$

518

$

564

$

502

$

2,012

Less: Sales under WAAM Fee-for-Service

(23)

(20)

(20)

(1)

(64)

Gross VOI sales, net of WAAM Fee-for-Service sales

405

498

544

501

1,948

Less: Loan loss provision

(63)

(90)

(104)

(86)

(342)

Vacation ownership interest sales

$

342

$

409

$

441

$

415

$

1,606

2015

Gross VOI sales

$

390

$

502

$

565

$

507

$

1,965

Less: Sales under WAAM Fee-for-Service

(21)

(26)

(37)

(42)

(126)

Gross VOI sales, net of WAAM Fee-for-Service sales

369

477

528

464

1,838

Less: Loan loss provision

(46)

(60)

(78)

(64)

(248)

Less: Impact of percentage-of-completion accounting

13

-

(2)

2

13

Vacation ownership interest sales

$

336

$

417

$

448

$

403

$

1,604

2014

Gross VOI sales

$

410

$

496

$

513

$

470

$

1,889

Less: Sales under WAAM Fee-for-Service

(44)

(40)

(27)

(21)

(132)

Gross VOI sales, net of WAAM Fee-for-Service sales

366

456

486

449

1,757

Less: Loan loss provision

(60)

(70)

(70)

(60)

(260)

Less: Impact of percentage-of-completion accounting

(3)

(4)

(1)

(4)

(12)

Vacation ownership interest sales

$

303

$

382

$

415

$

385

$

1,485

_____________

Note: Amounts may not add due to rounding.

The following includes primarily tele-sales upgrades and other non-tour revenues, which are excluded from Gross VOI sales in the 

Company's VPG calculation (see Table 3):

Q1

Q2

Q3

Q4

Full Year

2017

$

25

$

 N/A 

$

 N/A 

$

 N/A 

$

 N/A 

2016

$

25

$

22

$

31

$

30

$

108

2015

$

24

$

17

$

32

$

27

$

100

2014

$

25

$

21

$

27

$

24

$

97

 

Table 10

Wyndham Worldwide Corporation

2017 OUTLOOK -  NON-GAAP

(In millions, except per share data)

Outlook (a) 

Outlook (a) 

As Adjusted

As Adjusted

(Non-GAAP)

(Non-GAAP)

Low

High

Net revenues

$

5,800

$

5,950

Adjusted EBITDA

$

1,410

$

1,440

Depreciation and amortization

(268)

(263)

Interest expense, net

(146)

(142)

Adjusted income before taxes 

995

1,028

Income taxes

(364)

(376)

Adjusted net income

$

631

$

652

Adjusted diluted earnings per share

$

5.98

$

6.18

Diluted shares

105.5

105.5

In determining adjusted EBIDTA, adjusted Net Income and adjusted EPS, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. A description of the adjustments which have been applicable in determining adjusted EBITDA, adjusted Net Income and adjusted EPS is included in Tables 7 and 8.  The Company is providing outlook on a non-GAAP basis because the Company is unable to predict with reasonable certainty the totality or ultimate outcome or occurrence of potential adjustments for the forward-looking period, which can be dependent on future events that may not be reliably predicted, such as acquisitions, legacy expenses, restructuring events, asset impairments, contract terminations, currency devaluations, or early extinguishment of debt instruments. Based on past reported results, where one or more of these items have been applicable, such excluded special items could be material, individually or in the aggregate, to the reported results. See Tables 7 and 8 for historical adjustments.

 

 

(a) 

Outlook represents Company's approximate projection of performance for the outlook period.  Projections may not total because the Company does not expect the actual results of all items to be at the precise amount simultaneously.

 

 

Table 11

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION - CONSTANT CURRENCY, CURRENCY NEUTRAL AND ACQUISITIONS

(In millions, except per share data)

The Company reports certain current year period financial measures on a constant currency and currency-neutral basis and excluding the impact of acquisitions.  The Company believes providing certain financial measures on a constant currency and currency-neutral basis as well as excluding the impact of acquisitions assists management and investors in better understanding underlying results and trends by excluding the impact of period over period changes in foreign exchange rates and changes resulting from acquisitions.

Constant currency results assume foreign results are translated from foreign currencies to the U.S. dollar at exchange rates consistent with those in the comparable period.

Currency Neutral results (i) assume foreign results are translated from foreign currencies to the U.S. dollar at exchange rates consistent with those in the comparable period and (ii) eliminating foreign exchange related activities such as foreign exchange hedges, balance sheet remeasurements, currency devaluations and/or other adjustments.  

Acquisition results are defined as the incremental period over period changes in the Company's results directly attributable to acquisitions.

Revenues in Constant Currency and Excluding Acquisitions:

Three Months Ended March 31, 

2017

2016

% Change

Destination Network revenue as reported

$

391

$

385

2%

Adjustments:

 

        Foreign currency - constant currency

9

-

*

 

        Incremental revenues from acquisitions

(13)

-

*

Total Destination Network revenues in constant currency and excluding acquisitions

$

387

$

385

1%

Rental revenue as reported

$

184

$

183

1%

Adjustments:

 

         Foreign currency - constant currency

9

-

*

 

         Incremental revenues from acquisitions

(9)

-

*

Total Rental revenues in constant currency and excluding acquisitions

$

184

$

183

1%

Currency-neutral Adjusted EBITDA:

Three months ended March 31,

2017

2016

% Change

Hotel Group EBITDA (a)

$

85

$

84

1%

Adjustments:

 

        Foreign currency - currency-neutral

1

-

*

Hotel Group Currency-neutral EBITDA

$

86

$

84

2%

Destination Network Adjusted EBITDA (a)

$

102

$

105

-3%

Adjustments:

          Incremental EBITDA from acquisitions

(2)

 

-

*

Destination Network Adjusted EBITDA

$

100

 

$

105

-5%

          excluding acquisitions

*

Not meaningful.

(a)

See Table 8 for a reconciliation of EBITDA to Adjusted EBITDA and Table 2 for a reconciliation of Net Income to EBITDA.

 

Table 12

Wyndham Worldwide Corporation

SCHEDULE OF DEBT

(In millions)

March 31,

December 31,

March 31,

2017

2016

2016

Securitized vacation ownership debt: (a)

   Term notes

$

1,902

$

1,857

$

2,005

   Bank conduit facility (b)

236

284

121

Total securitized vacation ownership debt (c)

2,138

2,141

2,126

Less: Current portion of securitized vacation ownership debt

191

195

207

Long-term securitized vacation ownership debt

$

1,947

$

1,946

$

1,919

Debt:

   Revolving credit facility (due July 2020) (d)

$

8

$

14

$

10

   Commercial paper (e)

221

427

343

   Term loan (due March 2021)

324

323

323

   $300 million 2.95% senior unsecured notes (due March 2017) (f)

-

300

299

   $14 million 5.75% senior unsecured notes (due February 2018) (g)

14

14

14

   $450 million 2.50% senior unsecured notes (due March 2018) (g)

449

449

448

   $40 million 7.375% senior unsecured notes (due March 2020)

40

40

40

   $250 million 5.625% senior unsecured notes (due March 2021)

248

248

247

   $650 million 4.25% senior unsecured notes (due March 2022)

648

648

648

   $400 million 3.90% senior unsecured notes (due March 2023)

406

407

408

   $300 million 4.15% senior unsecured notes (due April 2024)

297

-

-

   $350 million 5.10% senior unsecured notes (due October 2025)

339

338

337

   $400 million 4.50% senior unsecured notes (due April 2027)

396

-

-

   Capital leases

141

143

158

   Other

44

20

31

Total long-term debt

3,575

3,371

3,306

Less: Current portion of long-term debt

40

34

45

Long-term debt

$

3,535

$

3,337

$

3,261

 

 

(a)

The Company's vacation ownership contract receivables are securitized through bankruptcy-remote special purpose entities ("SPEs") that are consolidated within our financial statements. These bankruptcy-remote SPEs are legally separate from the Company. The receivables held by the bankruptcy-remote SPEs are not available to the Company's creditors and legally are not the Company's assets. Additionally, the non-recourse debt that is securitized through the SPEs is legally not a liability of the Company and thus, the creditors of these SPEs have no recourse to the Company for principal and interest.

(b)

Represents a non-recourse vacation ownership bank conduit facility with a term through August 2018 and borrowing capacity of $650 million. As of March 31, 2017, this facility had a remaining borrowing capacity of $414 million.

(c)

This debt is collateralized by $2,582 million, $2,601 million and $2,548 million, of underlying vacation ownership contract receivables and related assets as of March 31, 2017, December 31, 2016, and March 31, 2016, respectively.

(d)

Represents a $1.5 billion revolving credit facility that expires in July 2020. As of March 31, 2017, the Company had $1 million of outstanding letters of credit. After considering outstanding commercial paper borrowings of $221 million, the remaining borrowing capacity was $1.3 billion as of March 31, 2017.

(e)

Represents commercial paper programs of $1.25 billion with a remaining borrowing capacity of $1.0 billion as of March 31, 2017.

(f)

Classified as long-term as of December 31, 2016 and March 31, 2016 as the Company had the intent to refinance such debt on a long-term basis and the ability to do so with its revolving credit facility.

(g)

Classified as long-term as of March 31, 2017 as the Company has the intent to refinance such debt on a long-term basis and the ability to do so with its revolving credit facility.

 



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