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Marriott Corporation, 1981 Annual Report
Image 37
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Marriott International, Inc.. Marriott Corporation, 1981 Annual Report - Image 37. 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/1437.

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 37. 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/1437

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 37, 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/1437.

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 37
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_053_037.jpg
Transcript Notes to Consolidated Financial Statements 1 Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Marriott Corporation and all subsidiaries. Investments in less than 50% owned affiliates in which the company possesses significant influence are accounted for under the equity method. All material intercompany transactions and balances have been eliminated. Fiscal Year The company's fiscal year ends on the Friday closest to December 31 for domestic operations and on November 30 for foreign operations. Fiscal 1980 (ended January 2, 1981) includes 53 weeks. All other years presented contain 52 weeks. Managed and Leased Hotel Operations The company operates 53 hotels under management and lease agreements where payments to owners are based primarily on hotel profits. Sales, expenses and operating working capital of managed and leased hotels operated with the company's employees are included in the accompanying consolidated financial statements. Payments to owners are included in rent expense. Foreign Operations The consolidated financial statements include net assets of foreign subsidiaries and affiliates of $76,253,000 at January 1,1982 and $72,729,000 at January 2,1981. Foreign net income was $8,177,000 in 1981, $11,389,000 in 1980 and $12,994,000 in 1979. In 1981 the company adopted Statement of Financial Accounting Standards No. 52, Foreign Currency Translation (SFAS No. 52). Accordingly, cumulative translation adjustments through January 1,1982 (other than those related to operations in highly inflationary economies) have been included in shareholders' equity. The effect on net income of adopting SFAS No. 52 was not material. Theme Parks Theme park costs incurred during the off-season are deferred (included in prepaid expenses) and charged to expense during the operating season based on budgeted sales. Property and Equipment The cost of new units includes interest, rent charges and real estate taxes incurred during development. Capitalized interest totaled $24,168,000 inl981, $12,546,000 in 1980 and $4,705,000 in 1979. Replacements and improvements, including most costs of converting units, are capitalized. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of asset or lease life. Upon sale or retirement of property and equipment (excluding normal sales or retirements of theme park rides and equipment), the costs less accumulated depreciation and salvage are charged or credited to income. Theme park rides and equipment are depreciated using the composite method and no gain or loss is recognized on normal sales or retirements. Cost in Excess of Net Assets of Businesses Acquired Of the cost in excess of net assets of businesses acquired, $12,936,000 relates to acquisitions prior to October 31,1970 (at which time amortization became mandatory) and is not being amortized because in the opinion of management it has continuing value. The remaining $6,764,000 at January 1,1982 is being amortized over periods of up to 40 years. Pre-Opening Costs Operating costs incurred prior to opening are deferred and amortized over three years for hotels, five years for theme parks and one year for other major operations. Similar costs for all other operations are expensed as incurred. Profit Sharing Plan The company contributes to a profit sharing plan for the benefit of employees meeting certain eligibility requirements and electing participation in the plan. Company contributions are a specified percentage of the company's pre-tax income. Company contributions to the plan were $12,698,000 in 1981, $10,621,000 in 1980 and $10,337,000 in 1979. Income Taxes Income taxes are based on reported income. Deferred income taxes are provided for timing differences between the recognition of certain income and expenses for financial reporting and tax purposes, principally depreciation and interest. Investment tax credits are accounted for using the "flow-through" method. Provision for income taxes has not been made on unremitted earnings of foreign subsidiaries ($36,340,000 as of January 1,1982) because management considers these earnings to be permanently invested. Earnings Per Share Primary earnings per share are based on the weighted average number of shares outstanding during each year, adjusted for the dilutive effect of employee stock option and purchase plans, deferred stock compensation and the conversion of certain convertible debt. Fully diluted earnings per share further assumes the conversion of all convertible debt. Primary and fully diluted shares averaged 26,876,251 and 26,933,932, respectively, in 1981. 35