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Marriott Corporation, 1968 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1968 Annual Report - Image 28. 1968. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. December 2, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/153/show/148.

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.. (1968). Marriott Corporation, 1968 Annual Report - Image 28. 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/153/show/148

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, 1968 Annual Report - Image 28, 1968, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed December 2, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/153/show/148.

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, 1968 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1968
Description Marriott Corporation Annual Report for the 52 weeks ending on July 28, 1968.
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 28
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_039_028.jpg
Transcript Notes tO Consolidated Financial Statements Marriott Corporation And Subsidiaries (1) ACQUISITIONS AND PRINCIPLES OF CONSOLIDATION: All subsidiaries have been included in the consolidated financial statements. The accounts of foreign subsidiaries are included in the consolidated financial statements after conversion to U.S. dollars. All of the 1968 acquisitions were accounted for as purchases. The cost in excess of net assets of acquired businesses has a continuing value and is not being amortized. In connection with the acquisition of Roy Rogers Western Foods, Inc., the Company may be required to issue additional shares of common stock in 1970. Such additional shares, if any, will be based on 1970 sales and, therefore, can not be determined at this time. (2) LONG-TERM OBLIGATIONS: Various loan agreements require the Company to (a) maintain working capital of $4,000,000 (b) restrict long- term debt and (c) limit cash dividends not to exceed income after July 30, 1967 plus $3,000,000. Maturities of long-term obligations, excluding the convertible subordinated notes,are as follows: Mortgages Lease-Purchase and Notes Obligations Interest rates 4 1/2% to 8% 5% to 6% Maturities 1970 $ 1,298,798 $ 2,484,522 1971 5,677,377 2,538,815 1972 3,944,452 2,676,257 to 1988 13,887,851 33,469,023 Total $24,808,478 $41,168,617 Lease-purchase obligations are in substance installment purchases and are recorded as leasehold interests 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. Additional lease-purchase commitments of $25,725,000 for construction which will be completed during the next 12 months have been made against which the Company has obtained construction financing of $2,500,000 at July 28, 1968. In addition to the forgoing leases, the Company has other leases which are not installment purchases and which have an average remaining term of 16 years as of July 28, 1968. Minimum annual rentals amount to approximately $3,100,000 as of July 28, 1968. Most of these leases have renewal privileges and require additional rentals under percentage clauses relating to sales. (3) FEDERAL INCOME TAXES: The Company and its subsidiaries file separate income tax returns. Federal income tax returns for years prior to 1961 have been examined and settled or accepted as filed. The Internal Revenue Agent's Report covering the years 1961 through 1963 has been received and the issues have been resolved subject to receiving the final adjusted report. The Federal income tax returns for the years 1964 through 1967 are currently being reviewed by the Internal Revenue Service. In the opinion of management, the adjustments for all years will not have, in the aggregate, a material adverse effect on the Company's consolidated financial position or consolidated earnings set forth in the accompanying financial statements. The provision for income taxes has been reduced by the investment credit in the amount of $827,000 and $462,000 for fiscal periods 1968 and 1967, respectively. The provision includes deferred income taxes of $1,770,000 and $1,645,906 for fiscal periods 1968 and 1967, respectively, relating to accelerated depreciation taken on fixed assets and on leasehold interests under lease-purchase obligations. (4) DEFERRED STOCK COMPENSATION: Deferred stock bonus awards and contracts have been made with 175 employees. The shares contingently vest pro rata until retirement, after which they are distributed in 10 annual installments. Adjusted for forfeitures, stock dividends and splits, a total of 251,047 shares have been awarded, of which 71,734 shares had vested on July 28, 1968. (5) CONVERTIBLE SUBORDINATED 5% NOTES: During 1968, the Company issued $10,000,000 of 5% convertible subordinated notes due in 1988. These notes can be converted into common shares at any time at $26.70 per share, subject to anti-dilution provisions. A total of 374,532 shares of unissued common stock has been reserved for issuance upon conversion of the notes. Annual principal payments of $1,000,000 commence April 1, 1979. The Company did not assign a value to the conversion privilege granted with these notes. A future opinion of the Accounting Principles Board of the American Institute of Certified Public Accountants may propose a retroactive adjustment which, if required, would not have a significant effect on the accompanying financial statements since the notes were issued during the last quarter of the fiscal year. (6) INTEREST ON CONSTRUCTION LOANS: In accordance with the practice generally followed by real estate investment companies, interest on loans, specifically made to finance major construction projects is capitalized as part of the construction cost. Total interest capitalized was $428,000 in 1968 and $567,000 in 1967. Such interest is expensed for tax purposes and the tax benefits are deferred. (7) DEPRECIATION AND AMORTIZATION OF BUILDINGS AND EQUIPMENT: Depreciation and amortization are calculated on the straight-line method for financial statement purposes and, where permitted, on accelerated methods for tax purposes. Deferred taxes are recorded where appropriate. (8) COMMON STOCK: Shares issued and outstanding are exclusive of 44,069 shares in 1968 and 21,393 shares in 1967 held by a wholly owned subsidiary. The accounting treatment of these shares has been to offset them against capital stock and captial surplus as though they had been retired, since management warrants that these shares will be officially retired when deemed practical. Earnings per share are based on the weighted average shares outstanding of 11,277,747 in 1968 and 10,418,843 in 1967. (9) TAX EXEMPT SECURITIES: The Company's policy is to invest surplus cash in tax exempt securities until required for other purposes. On July 29 and 30, 1968, the Company purchased $4,829,000 additional tax exempt securities. (10) EMPLOYEE STOCK PURCHASE PLAN: The Board of Directors adopted an Employee Stock Purchase Plan, subject to shareholders' approval at the Annual Meeting to be held November 19, 1968. A total of 100,000 shares of common stock may be purchased under the Plan at fair market value.