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Marriott Corporation, 1981 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1981 Annual Report - Image 38. 1981. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. August 9, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1438.

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 38. 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/1438

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 38, 1981, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed August 9, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1438.

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 38
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_053_038.jpg
Transcript Investments in Affiliates The company's investments in and advances to less than 50% owned affiliates include: 1981 1980 (in thousands) $28,705 $25,720 9,377 8,501 3,227 3,366 $41,309 $37,587 Hotel joint ventures Sun Line Greece Special Shipping Company Other joint ventures The company has interests in seven joint ventures that own hotels operated by the company under long- term agreements. Payments by the company to the ventures are based primarily on profits of the hotels. At January 1,1982, combined assets and liabilities of these hotel joint ventures were $316,774,000 and $253,228,000, including mortgages of $220,074,000. The mortgages are secured solely by venture assets without recourse to the company. The company also has investments in seven other joint ventures presently constructing hotels that will be operated by the company. At November 30,1981, Sun Line Greece Special Shipping Company had total assets of $24,098,000 and liabilities of $9,792,000, including $1,464,000 of debt. The company has guaranteed 45% of this debt. The excess of the company's investment over its equity in the underlying net assets of less than 50% owned affiliates is $2,205,000 and is being amortized over periods up to 40 years. The company has formed a limited partnership which will own 11 hotel properties to be managed by a wholly owned subsidiary of the company. Management fees will be based primarily on available profits of the hotels. The company will serve as sole general partner. During 1982, the company expects to sell limited partnership interests in a public offering. The company will contribute its interest in certain existing hotels and work to date with respect to other hotels under construction or development. A group of commercial banks has committed to lend the partnership $365 million to provide financing for the estimated cost of the 11 hotels. Upon closing of the sale of the limited partnership interests and contribution of the hotels to the partnership, the company will be reimbursed for its capital investment in the properties ($142 million as of January 1,1982). The partnership also has a loan commitment for up to $91.25 million to pay certain required interest payments on indebtedness related to the completed hotels. Additionally, the company has agreed to advance up to $45.6 million to cover shortfalls in certain partnership debt service. Any such advances by the company are recoverable from subsequent partnership cash flows after partnership debt service. The company has also agreed to advance up to $36.5 million to cover construction cost overruns, if any, in excess of the estimated property costs. To date, no advances have been required under these guarantees. Income Taxes Income tax expense consists of: 1981 1980 1979 (in thousands) Current—Federal $ 31,844 $34,810 $39,016 -State 5,043 5,577 5,878 —Foreign 4,673 6,620 5,199 Deferred 26,626 11,510 8,786 Tax credits Investment tax credit (10,400) (7,200) (5,300) Salaried employee stock ownership plan (1,560) (1,065) (833) Jobs tax credit (2,300) (2,194) (601) Income from investment tax credit purchased under "safe harbor" tax leases (1,033) $ 52,893 — — Provision for income taxes $48,058 $52,145 The deferred provision is primarily attributable to the tax effect of excess tax over book depreciation equal to $12,629,000 in 1981, $7,100,000 in 1980 and $9,529,000 in 1979 and the tax effect of capitalized interest equal to $11,518,000 in 1981 and $5,526,000 in 1980. Tax credits arising from the company's contributions to a salaried employee stock ownership plan offset a corresponding charge to corporate expenses. Reconciliation of the United States statutory tax rate and the company's consolidated income tax rate follows: 1981 1980 1979 United States statutory tax rate 46.0% 46.0% 46.0% State income taxes, net of U.S. tax benefit 3.6 3.7 3.6 Foreign earnings and losses subject to aggregate tax rate less than U.S. rate (1.6) (1.8) (3.3) Other items, net 1.0 .8 1.5 Effective gross income tax rate 49.0 48.7 47.8 Tax credits and other (11.0) (8.7) (5.5) Effective income tax rate 38.6% 40.0% 42.3% Debt Maturities of debt at January 1,1982 are: (in thousands) 1983 $ 17,214 1984 21,540 1985 40,308 1986 43,272 to 2010 458,009 $580,343 The company has debt of $390,908,000 as of January 1,1982 at interest rates which vary based on the prime lending rate, London Euro-dollar interbank rate or negotiated rates based on the banks' cost of funds. Interest rates on other debt range from 4.25% to 12.0%. The company's loan agreements require it to meet certain requirements including among other things, maintaining minimum net worth and asset-to-debt and debt-to-equity ratios. The loan agreements also have I i 36