Press Release

Wyndham Worldwide Reports Second Quarter 2016 Results

Increases Full Year EPS Guidance

PARSIPPANY, N.J., July 27, 2016 /PRNewswire/ -- Wyndham Worldwide Corporation (NYSE:WYN) today announced results for the three months ended June 30, 2016.

Second quarter revenues were $1.4 billion, flat compared with the prior year period. In constant currency and excluding acquisitions, revenues increased 1%.

Net income for the second quarter of 2016 was $156 million, or $1.39 per diluted share, compared with $159 million, or $1.33 per diluted share, for the second quarter of 2015. Adjusted net income for the second quarter of 2016 was $156 million, or $1.40 per diluted share, compared with $159 million, or $1.32 per diluted share, for the second quarter of 2015. Net income was impacted by higher interest expense and depreciation, as well as a higher tax rate, which offset growth in EBITDA. EPS benefited from the Company's share repurchase program. Full reconciliations of adjusted net income and adjusted EPS appear on table 7 of this press release.

Second quarter EBITDA was $340 million, compared with $332 million in the prior year period, an increase of 2%. On a currency-neutral basis and excluding acquisitions, adjusted EBITDA increased 3%. Full reconciliations of EBITDA to net income appear on Table 2 of this press release.

"In the second quarter, we continued to execute our strategy to drive growth and free cash flow while maintaining our disciplined capital allocation framework to enhance shareholder value," said Stephen P. Holmes, chairman and CEO. "We are looking ahead – making sure we continually innovate and invest for the future in order to ensure strong, continued growth in the years to come."

For the six months ended June 30, 2016, net cash provided by operating activities was $706 million, compared with $737 million in the prior year period. The decrease reflects unfavorable currency movements of $35 million, including a $24 million devaluation of the Venezuelan bolivar in the first quarter of 2016.

Free cash flow was $616 million for the six months ended June 30, 2016, compared with $625 million for the same period in 2015, reflecting the changes in net cash provided by operating activities highlighted above in addition to the favorable timing of capital expenditures. The Company defines free cash flow as net cash provided by operating activities less capital expenditures as illustrated in Table 4 of this press release.

SECOND QUARTER 2016 BUSINESS UNIT RESULTS

Hotel Group
Revenues were $334 million in the second quarter of 2016, flat compared with the second quarter 2015. Revenues reflected growth in royalties and the Company's Wyndham Rewards credit card program, offset by the absence of pass-through revenues associated with the Company's franchisee conference in the second quarter of 2015.

EBITDA grew 5% to $101 million, reflecting growth in royalties and the Company's Wyndham Rewards credit card program, and expense management.

Second quarter domestic RevPAR increased 2.0%. In constant currency, total system-wide RevPAR declined by 0.6% compared with the second quarter of 2015, which reflects continued weakness in domestic and Canadian oil markets and higher unit growth in lower RevPAR countries such as China.

As of June 30, 2016, the Company's hotel system consisted of approximately 7,880 properties and over 683,300 rooms, a 2.2% net room increase compared with the second quarter of 2015. The development pipeline included over 1,000 hotels and approximately 128,000 rooms, of which 61% were international and 66% were new construction.

Destination Network (formerly Vacation Exchange and Rentals)
Revenues were $384 million in the second quarter of 2016, flat compared with the second quarter of 2015. In constant currency and excluding acquisitions, revenues increased 1%.

Exchange revenues were $159 million. In constant currency, exchange revenues grew 1% as the average number of members increased 0.7% and exchange revenue per member increased 0.3%.

Vacation rental revenues were $202 million. In constant currency and excluding the impact of acquisitions, vacation rental revenues were up 1%, reflecting a 4.0% increase in transaction volume, partially offset by a 3.3% decrease in average net price per vacation rental reflecting faster growth in our more moderate product offerings.

EBITDA for the second quarter of 2016 was $85 million, a 1% increase compared with the second quarter of 2015. On a currency-neutral basis and excluding the impact of acquisitions, EBITDA increased 2% compared with the prior year period, largely reflecting growth in rental transactions and exchange members.

Vacation Ownership
Revenues were $705 million in the second quarter of 2016, a 1% increase over the second quarter of 2015.

Net VOI sales declined by 2%, as higher gross VOI sales volume was offset by an increase in the provision for loan losses, which was in line with the Company's expectations.

Gross VOI sales were $518 million in the second quarter of 2016, an increase of 3% compared with the second quarter of 2015. Results reflect tour flow growth of 3.4%, partially offset by a volume per guest (VPG) decline of 0.8% in constant currency, reflecting higher sales to new owners. The number of new owners added increased 13% from the second quarter of 2015.

EBITDA for the second quarter of 2016 was $187 million, an increase of 3% compared with the second quarter of 2015, reflecting higher gross VOI sales, a lower cost of sales and higher management fees, partially offset by an increase in the provision for loan losses.

OTHER ITEMS

The Company repurchased 2.1 million shares of common stock for $150 million during the second quarter of 2016. From July 1 through July 26, 2016, the Company repurchased an additional 0.6 million shares for $42 million.
Reported net interest expense in the second quarter of 2016 was $32 million, compared with $28 million in the second quarter of 2015, reflecting increased debt levels including the $350 million 5.10% bond issued in September 2015 and the absence of a fixed-to-floating interest rate swap terminated in 2015.
Depreciation and amortization in the second quarter of 2016 was $63 million, compared with $58 million in the second quarter of 2015, reflecting new projects that were placed into service.

Balance Sheet Information as June 30, 2016:

Cash and cash equivalents of $478 million, compared with $171 million at December 31, 2015, reflecting higher seasonal cash collections at the Company's vacation rental businesses
Vacation ownership contract receivables, net, of $2.7 billion, unchanged from December 31, 2015
Vacation ownership and other inventory of $1.3 billion, unchanged from December 31, 2015
Securitized vacation ownership debt of $2.0 billion, compared with $2.1 billion at December 31, 2015
Long-term debt of $3.4 billion, compared with $3.1 billion at December 31, 2015. The remaining borrowing capacity on the revolving credit facility, net of commercial paper borrowings, was $1.1 billion as of June 30, 2016, compared with $1.4 billion at December 31, 2015.

A schedule of debt is included in Table 12 of this press release.

OUTLOOK

Note to Editors: The guidance excludes possible future share repurchases, while analysts' estimates often include share repurchases. This results in discrepancies between Company guidance and database consensus forecasts.

Full reconciliations of the outlook for adjusted EBITDA, adjusted net income and adjusted EPS to GAAP results appear in Table 10 of this press release.

The Company provides the following guidance for the full year 2016:

Revenues of approximately $5.650 - $5.800 billion.
Adjusted net income of approximately $635 - $651 million.
Adjusted EBITDA of approximately $1.375 - $1.400 billion.
Adjusted diluted EPS of approximately $5.68 - $5.82 based on a diluted share count of 112 million.

The Company will post guidance information on its website following the conference call.

CONFERENCE CALL INFORMATION
Wyndham Worldwide Corporation will hold a conference call with investors to discuss the Company's results, outlook and guidance on Wednesday, July 27, 2016 at 8:30 a.m. ET. Listeners can access the webcast live through the Company's website at http://www.wyndhamworldwide.com/investors/. The conference call may also be accessed by dialing 888-632-3384 and providing the pass code "WYNDHAM." Listeners are urged to call at least 10 minutes prior to the scheduled start time. An archive of this webcast will be available on the website for approximately 90 days beginning at 12:00pm ET on July 27, 2016. A telephone replay will be available for approximately 10 days beginning at 12:00pm ET on July 27, 2016 at 800-723-0394.

PRESENTATION OF FINANCIAL INFORMATION
Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing the Company's ongoing core operating performance. Exclusion of items in the Company's non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. A reconciliation of reported GAAP results to the comparable non-GAAP information appears in the financial tables section of the press release. A reconciliation of forecasted adjusted EBITDA and adjusted EPS to the most directly comparable GAAP measures is provided in Table 10 of this press release.

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 more than 120,000 places to stay across 100 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. For more information, please visit www.wyndhamworldwide.com.

FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, conveying management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release include statements related to the Company's revenues, earnings, cash flow and related financial and operating measures.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Factors that could cause actual results to differ materially from those in the forward-looking statements include general economic conditions, the performance of the financial and credit markets, the economic environment for the hospitality industry, the impact of war, terrorist activity or political strife, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well as those described in the Company's Annual Report on Form 10-K, filed with the SEC on February 12, 2016. Except for the Company's ongoing obligations to disclose material information under the federal securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

Wyndham Worldwide Corporation
Earnings Release Schedules
Quarter Two - June 30, 2016
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 2016 Outlook	10

Non-GAAP Reconciliation - Constant Currency and Currency Neutral	11

Schedule of Debt	12

									Table 1
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)


		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2016		2015		2016		2015
Net revenues
	Service and membership fees	$	632	$	623	$	1,266	$	1,223
	Vacation ownership interest sales		409		417		750		753
	Franchise fees		172		178		310		325
	Consumer financing		108		105		215		210
	Other		82		75		165		150
Net revenues			1,403		1,398		2,706		2,661

Expenses
	Operating		622		610		1,236		1,176
	Cost of vacation ownership interests		32		47		68		80
	Consumer financing interest		19		19		36		36
	Marketing and reservation		211		211		403		406
	General and administrative		185		182		372		362
	Depreciation and amortization		63		58		125		114
Total expenses			1,132		1,127		2,240		2,174

Operating income			271		271		466		487
Other (income)/expense, net			(6)		(3)		(16)		(8)
Interest expense			34		30		68		56
Early extinguishment of debt			-		-		11		-
Interest income			(2)		(2)		(4)		(5)

Income before income taxes			245		246		407		444
Provision for income taxes			89		87		156		162
Net income		$	156	$	159	$	251	$	282

Earnings per share
	Basic	$	1.40	$	1.34	$	2.25	$	2.35
	Diluted		1.39		1.33		2.23		2.33

Weighted average shares outstanding
	Basic		111		119		112		120
	Diluted		112		120		113		121


Note: For a description of adjustments to Net Income, see Table 7.

								Table 2
								(1 of 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. 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 EBITDA to Net income for the three months ended June 30, 2016 and 2015:

	Three Months Ended June 30,
	2016				2015
	Net Revenues		EBITDA		Net Revenues		EBITDA
Hotel Group	$	334	$	101	$	334	$	96
Destination Network		384		85		383		84
Vacation Ownership		705		187		699		182
Total Reportable Segments		1,423		373		1,416		362
Corporate and Other ^(a)		(20)		(33)		(18)		(30)
Total Company	$	1,403	$	340	$	1,398	$	332

Reconciliation of EBITDA to Net income

			Three Months Ended June 30,
			2016				2015
EBITDA			$	340			$	332
Depreciation and amortization				63				58
Interest expense				34				30
Interest income				(2)				(2)
Income before income taxes				245				246
Provision for income taxes				89				87
Net income			$	156			$	159


^(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 June 30, 2016 and 2015 (for a description of adjustments and reconciliation by segment, see Table 8):


	Three Months Ended June 30,
	2016				2015
			Adjusted				Adjusted
	Net Revenues		EBITDA		Net Revenues		EBITDA
Hotel Group	$	334	$	101	$	334	$	97
Destination Network		384		85		383		84
Vacation Ownership		705		187		699		182
Total Reportable Segments		1,423		373		1,416		363
Corporate and Other		(20)		(33)		(18)		(31)
Total Company	$	1,403	$	340	$	1,398	$	332

								Table 2
								(2 of 2)
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)


The following tables summarize net revenues and EBITDA for the Company's reportable segments, as well as reconcile EBITDA to Net income for the six months ended June 30, 2016 and 2015:

	Six Months Ended June 30,
	2016				2015
	Net Revenues		EBITDA		Net Revenues		EBITDA
Hotel Group	$	629	$	185	$	626	$	172
Destination Network		768		166		752		189
Vacation Ownership		1,345		323		1,316		313
Total Reportable Segments		2,742		674		2,694		674
Corporate and Other ^(a)		(36)		(67)		(33)		(65)
Total Company	$	2,706	$	607	$	2,661	$	609

Reconciliation of EBITDA to Net income

			Six Months Ended June 30,
			2016				2015
EBITDA			$	607			$	609
Depreciation and amortization				125				114
Interest expense				68				56
Early extinguishment of debt				11				-
Interest income				(4)				(5)
Income before income taxes				407				444
Provision for income taxes				156				162
Net income			$	251			$	282


^(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 six months ended June 30, 2016 and 2015 (for a description of adjustments and reconciliation by segment, see Table 8):


	Six Months Ended June 30,
	2016				2015
			Adjusted				Adjusted
	Net Revenues		EBITDA		Net Revenues		EBITDA
Hotel Group	$	629	$	185	$	626	$	175
Destination Network		768		190		752		189
Vacation Ownership		1,345		323		1,316		313
Total Reportable Segments		2,742		698		2,694		677
Corporate and Other		(36)		(66)		(33)		(66)
Total Company	$	2,706	$	632	$	2,661	$	611

													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		2016		679,100		683,300		N/A		N/A		N/A
			2015		667,400		668,500		671,900		678,000		N/A
			2014		646,900		650,200		655,300		660,800		N/A
			2013		631,800		635,100		638,300		645,400		N/A

	RevPAR		2016	$	31.59	$	39.10		N/A		N/A		N/A
			2015	$	32.84	$	39.82	$	43.34	$	32.98	$	37.26
			2014	$	32.30	$	40.11	$	43.71	$	34.06	$	37.57
			2013	$	31.05	$	38.00	$	41.78	$	33.07	$	36.00

Destination Network
	Average Number of Members (in 000s)		2016		3,841		3,857		N/A		N/A		N/A
			2015		3,822		3,831		3,835		3,836		3,831
			2014		3,727		3,748		3,777		3,808		3,765
			2013		3,668		3,686		3,711		3,728		3,698

	Exchange Revenue Per Member		2016	$	189.78	$	164.61		N/A		N/A		N/A
			2015	$	194.06	$	167.81	$	163.38	$	152.00	$	169.29
			2014	$	200.78	$	179.17	$	171.77	$	157.24	$	177.12
			2013	$	210.96	$	182.42	$	169.95	$	161.21	$	181.02

	Vacation Rental Transactions (in 000s) ^{(a) (b)}		2016		500		409		N/A		N/A		N/A
			2015		459		390		462		319		1,630
			2014		429		376		455		293		1,552
			2013		423		355		433		273		1,483

	Average Net Price Per Vacation Rental^{(a) (b)}		2016	$	366.08	$	492.83		N/A		N/A		N/A
			2015	$	361.20	$	513.14	$	642.00	$	452.19	$	494.92
			2014	$	410.04	$	577.13	$	727.40	$	492.25	$	558.95
			2013	$	392.64	$	540.38	$	677.81	$	506.62	$	532.11

Vacation Ownership ^(a)
	Gross Vacation Ownership Interest (VOI) Sales (in 000s) ^(c)		2016	$	428,000	$	518,000		N/A		N/A		N/A
			2015	$	390,000	$	502,000	$	565,000	$	507,000	$	1,965,000
			2014	$	410,000	$	496,000	$	513,000	$	470,000	$	1,889,000
			2013	$	384,000	$	481,000	$	536,000	$	488,000	$	1,889,000

	Tours (in 000s)		2016		179		213		N/A		N/A		N/A
			2015		168		206		227		200		801
			2014		170		208		225		191		794
			2013		163		206		225		195		789

	Volume Per Guest (VPG)		2016	$	2,244	$	2,328		N/A		N/A		N/A
			2015	$	2,177	$	2,353	$	2,354	$	2,390	$	2,326
			2014	$	2,272	$	2,280	$	2,158	$	2,336	$	2,257
			2013	$	2,211	$	2,256	$	2,278	$	2,370	$	2,281

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		2016		7,830		7,880		N/A		N/A		N/A
			2015		7,670		7,700		7,760		7,810		N/A
			2014		7,500		7,540		7,590		7,650		N/A
			2013		7,380		7,410		7,440		7,490		N/A

Vacation Ownership
	Provision for Loan Losses (in 000s) ⁽^*⁾		2016	$	63,000	$	90,000		N/A		N/A		N/A
			2015	$	46,000	$	60,000	$	78,000	$	64,000	$	248,000
			2014	$	60,000	$	70,000	$	70,000	$	60,000	$	260,000
			2013	$	84,000	$	90,000	$	102,000	$	73,000	$	349,000

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 2013-2016.

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:
	Six Months Ended June 30,
	2016		2015
Net cash provided by operating activities	$	706	$	737

Net cash used in investing activities		(140)		(233)

Net cash used in financing activities		(251)		(269)

Effect of changes in exchange rates on cash and cash equivalents		(8)		(8)

Net increase in cash and cash equivalents	$	307	$	227


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:

	Six Months Ended June 30,
	2016		2015
Net cash provided by operating activities	$	706	$	737
Less: Property and equipment additions		(90)		(112)
Free cash flow	$	616	$	625

																					Table 5

Wyndham Worldwide Corporation
REVENUE DETAIL BY REPORTABLE SEGMENT
(In millions)


		2016										2015
			Q1		Q2		Q3		Q4		Year		Q1		Q2		Q3		Q4		Year
Hotel Group
	Royalties and Franchise Fees	$	74	$	94		N/A		N/A		N/A	$	74	$	96	$	103	$	87	$	361
	Marketing, Reservation and Wyndham Rewards Revenues ^(a)		83		103		N/A		N/A		N/A		96		108		112		92		407
	Hotel Management Reimbursable Revenues ^(b)		67		71		N/A		N/A		N/A		61		71		73		68		273
	Intersegment Trademark Fees		13		15		N/A		N/A		N/A		12		15		16		15		57
	Owned Hotel Revenues		27		19		N/A		N/A		N/A		25		20		16		19		79
	Ancillary Revenues ^(c)		31		32		N/A		N/A		N/A		24		24		37		33		120
	Total Hotel Group		295		334		N/A		N/A		N/A		292		334		357		314		1,297

Destination Network
	Exchange Revenues		182		159		N/A		N/A		N/A		185		161		157		146		649
	Rental Revenues		183		202		N/A		N/A		N/A		166		200		296		144		807
	Ancillary Revenues ^(d)		20		23		N/A		N/A		N/A		18		22		23		20		82
	Total Destination Network		385		384		N/A		N/A		N/A		369		383		476		310		1,538

Vacation Ownership
	Vacation Ownership Interest Sales		342		409		N/A		N/A		N/A		336		417		448		403		1,604
	Consumer Financing		107		108		N/A		N/A		N/A		104		105		108		109		427
	Property Management Fees and Reimbursable Revenues		164		161		N/A		N/A		N/A		153		149		159		155		615
	WAAM Fee-for-Service Commissions		17		16		N/A		N/A		N/A		12		19		23		28		83
	Ancillary Revenues ^(e)		11		11		N/A		N/A		N/A		12		9		12		11		43
	Total Vacation Ownership		641		705		N/A		N/A		N/A		617		699		750		706		2,772
Total Reportable Segments		$	1,321	$	1,423		N/A		N/A		N/A	$	1,278	$	1,416	$	1,583	$	1,330	$	5,607


		2014										2013
			Q1		Q2		Q3		Q4		Year		Q1		Q2		Q3		Q4		Year
Hotel Group
	Royalties and Franchise Fees	$	68	$	88	$	100	$	83	$	339	$	64	$	79	$	91	$	75	$	309
	Marketing, Reservation and Wyndham Rewards Revenues ^(a)		76		101		117		91		385		73		92		118		83		365
	Hotel Management Reimbursable Revenues ^(b)		37		39		39		39		154		25		38		37		35		135
	Intersegment Trademark Fees		9		11		11		10		41		8		10		11		10		39
	Owned Hotel Revenues		24		20		18		20		81		26		20		18		19		84
	Ancillary Revenues ^(c)		23		24		30		24		101		26		23		22		23		95
	Total Hotel Group		237		283		315		267		1,101		222		262		297		245		1,027

Destination Network
	Exchange Revenues		187		168		162		150		667		193		168		158		150		669
	Rental Revenues		176		217		331		144		868		166		192		293		138		789
	Ancillary Revenues ^(d)		16		17		19		17		69		15		16		19		17		68
	Total Destination Network		379		402		512		311		1,604		374		376		470		305		1,526

Vacation Ownership
	Vacation Ownership Interest Sales		303		382		415		385		1,485		263		347		384		384		1,379
	Consumer Financing		105		106		108		108		427		105		106		107		108		426
	Property Management Fees		143		145		150		142		581		146		141		143		137		567
	WAAM Fee-for-Service Commissions		33		30		18		16		98		24		30		33		20		107
	Ancillary Revenues ^(e)		9		10		13		17		47		11		6		10		9		36
	Total Vacation Ownership		593		673		704		668		2,638		549		630		677		658		2,515
Total Reportable Segments		$	1,209	$	1,358	$	1,531	$	1,246	$	5,343	$	1,145	$	1,268	$	1,444	$