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Marriott Corporation, 1981 Annual Report
Image 30
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Marriott International, Inc.. Marriott Corporation, 1981 Annual Report - Image 30. 1981. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. October 29, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1430.

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.. (1981). Marriott Corporation, 1981 Annual Report - Image 30. 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/1445/show/1430

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, 1981 Annual Report - Image 30, 1981, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed October 29, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1430.

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, 1981 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1981
Description Marriott Corporation Annual Report for calendar year 1981.
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 30
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_053_030.jpg
Transcript Current Value Increases Shareholders' equity per share, expressed on a Current Value basis, increased 15% to $55 in 1981 from $48 in 1980. This compares favorably with the historical cost book value of $16 per share. Historical cost accounting understates both the value of Marriott's real estate-based assets and its investment capacity. The company's Current Value balance sheet restates historical cost assets and liabilities to reflect 1981 year-end valuations. As shown, Current Value shareholders' equity increased during 1981, primarily from strong discretionary cash flow, new hotel management agreements and increases in value of operating properties. The $1 billion increase in restated shareholders' equity from $422 million at historical cost to over $1.4 billion at Current Value results from a consistent policy of owning and managing real estate assets prudently financed with debt. Outlook Inflation continues as the most significant external economic force that will impact business in the 1980s despite efforts to moderate it. Inflation adversely affects many industries. However, Marriott's business profile and real estate-based assets should enable the company to meet its financial goals—despite inflation—and to continue to provide shareholders with real economic returns in excess of inflation. Changes in Current Value Shareholders' Equity Current Value—January 2,1981 Discretionary Cash Flow Changes in Current Value Operating Properties Hotel Management and Lease Agreements Deferred Taxes and Other Current Value Increases Common Stock Issuance and Other Current Value—January 1,1982 Millions Per Share $1,201 $47.93 157 5.84 57 2.12 95 3.53 (98) (3.42) 211 8.07 24 (1.10) $1,436 $54.90 Condensed Consolidated Current Value Balance Sheet as of January 1,1982 (in thousands) Current Assets Operating Properties Hotel Management and Lease Agreements Investments in Affiliates Other Assets Current Liabilities Senior Debt and Lease Obligations Deferred Taxes Other Liabilities Shareholders' Equity Percentage of Senior Debt and Lease Obligations to Total Capital Current Historical Value Cost $ 267,290 $ 267,290 1,798,445 1,072,770 420,761 — 67,280 41,309 53,807 73,507 $2,607,583 $1,454,876 $ 287,418 $ 287,418 560,458 607,743 297,846 112,241 25,745 25,745 1,436,116 421,729 $2,607,583 $1,454,876 24.2% 52.1% Basis of Valuation Property and equipment, hotel management agreements and investments in affiliates are valued on the basis of the present worth of estimated future cash flows after deducting anticipated asset maintenance requirements. Goodwill is assigned no value. Senior debt and lease obligations are discounted to present value. Discount rates reflect current market rates, which increased substantially in 1981, reducing the growth of asset values. Deferred taxes are provided to reflect the present value of projected income tax payments arising from the difference between assets' current value and net tax value. 28