At January 1,1982 options for 637,606 shares were
exercisable and 956,293 shares were available for granting of additional options. No accounting is made for options until they are exercised.
Shares of deferred stock may be granted to key employees and reserved for their benefit. Granted shares
generally vest in annual pro rata installments commencing one year after grant and continuing until retirement.
However, upon termination all non-vested shares are forfeited. The company accrues compensation expense for
the fair market value of the shares on the date of grant,
less estimated forfeitures.
The purchase price for the shares reserved under the
employee qualified stock purchase plan is the market
value at the beginning or end of the plan year, whichever
Business Segment Information
Results of operations by principal business segment
are included in the Statement of Consolidated Income.
Net assets employed, identifiable assets, capital expenditures and acquisitions, and depreciation and amortization by principal business segment are (in millions):
Net Assets Employed*
Capital Expenditures and
1979 1981 1980 1979
Hotel Group $ 525.4 $414.0 $376.0 $ 647.2
Contract Food Services 182.3 142.2 126.8 239.8
Restaurant Group 238.3 204.5 182.9 274.4
Theme Parks 166.4 164.2 158.0 172.0
Cruise Ships and Other 17.8 21.3 17.6 28.0
Corporate 37.3 31.5 30.6 93.5
"Net assets employed represent identifiable assets less identifiable current liabilities.
$1,167.5 $977.7 $891.9 $1,454.9 $1,214.3 $1,080.4 $357.9 $239.1 $158.5 $66.4 $55.9 $50.6
Acquisitions and Disposition
On January 6,1982, the company entered into a merger
agreement under which the company offered to purchase
for $18 per share all of the outstanding common shares
of Gino's Inc. Gino's is a fast food and restaurant company operating primarily in the mid-Atlantic region. As of
March 9,1982, the company had acquired 95% of Gino's
outstanding common shares. Remaining shares of Gino's
will be converted into the right to receive cash of $18
per share under the terms of the merger agreement.
The acquisition cost of the Gino's shares approximates
$48,000,000 and was financed through the company's
available revolving bank loan commitments. Following
the merger, the company expects to convert approximately
200 Gino's restaurants into Roy Rogers restaurants which
will be operated either by Marriott or its Roy Rogers
franchisees, and to sell the remaining Gino's restaurants
and operations. On February 2,1982, the company signed
an agreement in principle to sell some of the Gino's units
to KFC Corporation.
On December 15,1981, the company entered into an
agreement and plan of merger with Host International, Inc.
under which the company would acquire all of the
Host common stock through a cash merger between
Host and a subsidiary of the company. The transaction
was completed on March 3,1982. Host is a diversified
food service, hospitality and retail merchandising company, operating in-flight kitchens, airport terminal food
and beverage and merchandising facilities, and specialty-
type restaurants. Host also manages four hotels adjoining
airport terminal buildings. The acquisition cost of the
Host shares approximates $148,000,000 and was financed through the company's available revolving bank
In connection with the acquisition, the company has
agreed to honor option agreements granted by Host to
DFS Group Limited (expiring in July 1982) to purchase
certain of Host's duty-free operations for $20,000,000
plus approximately $10,000,000 for inventories.
Sales and earnings before interest and taxes (unaudited)
of Host (excluding discontinued operations and the
duty-free operations under option agreements with DFS)
for the year ended December 31,1981 were $294,134,000
and $18,770,000, respectively.
On March 9,1982 the company sold its Farrell's Ice
Cream Parlour Restaurants Division for $15,000,000.
Farrell's 1981 sales and operating income were
$50,531,000 and $3,646,000, respectively.