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Marriott Corporation, 1972 Annual Report
Image 31
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Marriott International, Inc.. Marriott Corporation, 1972 Annual Report - Image 31. 1972. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. August 3, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1171/show/1165.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Marriott International, Inc.. (1972). Marriott Corporation, 1972 Annual Report - Image 31. Annual Reports from the Hospitality Industry Archives. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. Retrieved from https://digital.lib.uh.edu/collection/hiltonar/item/1171/show/1165

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Marriott International, Inc., Marriott Corporation, 1972 Annual Report - Image 31, 1972, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed August 3, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1171/show/1165.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

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Compound Item Description
Title Marriott Corporation, 1972 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1972
Description Marriott Corporation Annual Report for the 52 weeks ending on July 28, 1972.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Marriott International, Inc.
Genre (AAT)
  • annual reports
  • business records
Language English
Type (DCMI)
  • Text
  • Image
Original Item Location Marriott Hotels Collection
Digital Collection Annual Reports from the Hospitality Industry Archives
Digital Collection URL http://digital.lib.uh.edu/collection/hiltonar
Repository Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston
Repository URL http://www.uh.edu/hilton-college/About/hospitality-industry-archives
Use and Reproduction No Copyright - United States
File Name index.cpd
Item Description
Title Image 31
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_043_031.jpg
Transcript Pre-opening expenses Deferred interest and financing expenses . Miscellaneous July 28, 1972 July 30, 1971 $ 4,664,332 $2,393,932 3,148,528 3,057,445 1,351,865 1,486,152 $10,870,305 $5,231,949 Costs incurred prior to the opening of a new hotel or a major hotel addition are deferred and amortized over three years. Pre-opening expenses of other major operations are deferred and amortized over one year. Other pre- opening expenses are expensed as incurred. Deferred financing expenses are amortized over the term of the loans and are considered interest expense. Miscellaneous deferred charges are amortized over the periods benefitted. The costs of developing data processing systems and research and development costs are expensed as incurred. Miscellaneous Assets: Miscellaneous assets consist of the following: July 28, 1972 July 30, 1971 Long-term receivables $4,839,417 $6,623,785 Escrow and lease deposits. . 1,922,591 1,709,000 Franchise rights, copyrights and trademarks 919,842 919,842 Miscellaneous investments . . 160,403 186,581 $7,842,253 1,439,208 2. FEDERAL INCOME TAXES: The Company and its subsidiaries file separate income tax returns. An Internal Revenue Agent's Report covering the tax returns for 1964 through 1967 has been received and certain deficiencies are being contested. Returns for 1968 through 1970 are currently being reviewed by the Internal Revenue Service. In the opinion of management, any adjustments will not have a material adverse effect on the accompanying consolidated financial statements. 3. DEBT (EXCLUDING CONVERTIBLE SUBORDINATED DEBT) AND COMMITMENTS: Maturities of mortgages, notes and lease-purchase obligations at July 28, 1972: Fiscal Year Secured Mortgage Loans Unsecured Notes Lease- Purchase Obligations Interest rates 1974 1975 1976 1977 To 1997 Total 4V2-10% $ 4,921,044 37,823,176 5,873,434 7,063,001 46,954,884 $102,635,539 6-9'A % $ 2,085,042 13,833,042 63,042 263,042 1,926,395 $18,170,563 5-7%% $ 2,703,573 2,865,122 2,929,524 2,861,769 43,187,708 $54,547,696 The above debt includes $49,246,692 at interest rates which vary based on the prime lending rate. Summary of Pledging of Assets: The Company's investment in property, improvements and equipment, at cost, excluding construction in progress, is $379,575,331. Of this amount, $130,456,468 is pledged under mortgage loans, $88,072,279 under lease- purchase obligations, and $161,046,584 is free of lien. Construction Financing: As of July 28, 1972, the Company has commenced major construction projects, aggregating $78,935,000 to be completed over the next three years, of which $32,789,000 has been expended. The Company has obtained permanent mortgage loan commitments of $47,700,000 on certain of these projects. During the construction period, the Company uses interim construction financing consisting of short-term bank loans and commercial paper (whose maturity averages 30 days) which will be refinanced by mortgage loan proceeds upon completion of the projects. Until completion of such projects, the interim construction financing must be refinanced or replaced by use of the Company's regular bank credit lines which aggregate $84 million with 25 commercial banks. Lease-purchases and Other Leases: Lease-purchase obligations are in substance installment purchases and are recorded as leasehold interest at the discounted amount of future rentals. These leases are made with corporations owned by the Marriott Foundation and provide for the recovery of principal and interest and a nominal profit. In addition to the foregoing leases, the Company has other leases which are not installment purchases and which have an average remaining term of 15 years as of July 28, 1972. Minimum annual rentals amount to approximately $7,900,000 as of July 28, 1972. Most of the leases require additional rentals under percentage clauses relating to sales and have renewal privileges. 4. CONVERTIBLE SUBORDINATED DEBT: 61A% Subordinated Guaranteed Debentures due 1989, convertible at $19.00 per share $1,066,000 41A % Convertible Subordinated Notes due 1992, convertible at $45.00 per share 5,000,000 $6,066,000 All conversion prices are subject to anti-dilution provisions. The 41A % notes have cash dividend restrictions, but at July 28, 1972, all of the retained earnings are unrestricted. Annual principal payments of $500,000 begin July, 1983 on the 41A% notes. 5. STOCK COMPENSATION, STOCK PURCHASE PLAN AND OTHER RESERVED SHARES: The Company has deferred stock compensation programs represented by deferred stock bonus awards and contract agreements. Certain of the agreements have restrictions which are released each year dependent upon increases in consolidated earnings per share. Under these plans, 684,759 shares of common stock have been awarded of which 127,675 shares are fully vested at July 28, 1972. Under some programs, shares are issued after the period earned; while under other programs, restricted shares are issued prior to the period earned. The amounts payable in the future in stock and the unamortized compensation for shares already issued are as follows: July 28, 7972 July 30, 1971 Stock payable in future $2,656,000 $2,306,000 Unamort. compensation ... . (417,978) (469,882) Net $2,238,022 $1,836,118 The Company has a qualified stock purchase plan for employees to purchase up to 78,192 shares of common stock. The purchase price for the shares to be purchased on January 31, 1973, is the market value at January 3, 1972, ($25.66 per share, adjusted for the 1972 stock split) or 100% of the market value at January 31, 1973, whichever is less. As of July 28, 1972, there was one warrant outstanding, expiring in 1981, to purchase 12,000 shares of common stock at $25 per share. 6. CAPITAL STOCK: 1,000,000 shares of preferred stock, without par value, are authorized. As of July 28, 1972, none has been issued. 45,000,000 shares of common stock with a par value of $1 per share are authorized, of which 29,336,745 were issued at July 28, 1972, and 14,069,042 at July 30, 1971, including treasury shares of 49,000 and 39,500, respectively. Total common stock shares reserved at July 28, 1972, for exercise of options, warrants and conversions of debt are 942,167. 29