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Marriott Corporation, 1975 Annual Report
Image 33
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Marriott International, Inc.. Marriott Corporation, 1975 Annual Report - Image 33. 1975. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 8, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1560/show/1552.

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.. (1975). Marriott Corporation, 1975 Annual Report - Image 33. 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/1560/show/1552

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, 1975 Annual Report - Image 33, 1975, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed July 8, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1560/show/1552.

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, 1975 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1975
Description Marriott Corporation Annual Report for the 52 weeks ending on July 25, 1975.
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 33
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_046_033.jpg
Transcript Notes to Consolidated Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation: The consolidated financial statements include accounts of the Company and all subsidiaries. Investments in companies representing 20% to 50% interests are accounted for under the equity method. All material intercompany transactions and balances have been eliminated. The 1974 financial statements have been reclassified to be consistent with the captions used in 1975, including amounts previously shown for condominium units held for sale and theme park pre-opening. Operating Groups' sales have been regrouped to report on a comparable basis the transfer in fiscal 1975 of Food Service Management and Highway divisions from Restaurant Operations to Business and Professional Services (formerly In-Flite Services), and the transfer of two specialty restaurants from Hotels to Restaurant Operations. Foreign Operations: The consolidated financial statements include net assets of foreign subsidiaries of $14,954,000 at July 25, 1975 and $16,680,000 at July 26, 1974. Foreign sales and net income (loss) after interest, intercompany charges and foreign tax, as a percent of consolidated sales and net income were 10% and (1)% in 1975 and were 11% and 3% in 1974, respectively. Financial statements of foreign subsidiaries have been translated into U.S. dollars as follows: current assets, long-term receivables and all liabilities at year end rates of exchange; property, equipment and depreciation reserves and expense at the rates in effect when the respective assets were acquired; and sales and expenses (except depreciation) at the average rates during the year. Exchange adjustments are charged or credited to income and are not significant. Condominium Sales: Sales of condominium units are recorded when both parties are bound by sales contracts and all conditions precedent to closing have been performed, including receipt of appropriate down payments. The Company had condominium sales of $7,379,000 in 1975 and $5,469,000 in 1974. Land and Ship Purchased for Future Operations or Resale: In connection with the development of properties, the Company has acquired land to be used for future operations and/or for eventual resale. Carrying costs are capitalized to the extent that estimated realizable value exceeds land and accumulated carrying costs. In fiscal 1975, the Company decided not to refurbish a ship which was included in construction in progress at July 26, 1974 and is currently considering alternatives for use of the ship. Construction Financing and Interest Capitalized: Interest cost is capitalized as part of construction costs or carrying costs of land purchased for future operations or resale to properly reflect the total costs of property. Interest is capitalized by applying the effective interest rate on the related borrowings to the balance of costs incurred. If all interest had been expensed when incurred, net income as reported would have been reduced by $4,785,000 in 1975 and $2,458,- 000 in 1974. See Note 5 for description of accounting for construction financing. Income Taxes: United States and foreign income taxes are based on reported income. Deferred income taxes are provided for timing differences between book and taxable income, principally depreciation, interest, stock compensation and lease costs. See Note 4 for analysis of income taxes. Investment tax credits are accounted for using the "flow-through" method. Provision for United States taxes has not been made on unremitted earnings of foreign subsidiaries because management considers these earnings to be permanently invested. Deferred Management Stock Compensation: Compensation for deferred stock bonus awards is recorded in the year in which the bonus is earned, adjusted for anticipated forfeitures, and is based on quoted market price at the date awarded. Computations of Earnings Per Share: Earnings per share of common stock are based on the weighted average number of shares outstanding during each year, which was 32,277,204 for 1975 and 31,868,019 for 1974 (adjusted for 1975 2i/2% stock dividend). Conversion of subordinated debt and distribution of shares reserved would not have a material effect on earnings per share. Cosf 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 $6,024,000 is being amortized over periods up to 40 years. Deferred Costs: Costs incurred prior to opening are deferred and amortized over three years for hotels and one year for other major operations. Management is currently planning to amortize such costs for theme parks over five years. Similar costs for all other operations are expensed as incurred. Issuance costs on long-term debt are deferred and amortized over the repayment term. Costs of developing data processing systems and research and development costs are expensed as incurred. Property and Equipment: Depreciation and amortization are calculated on the straight-line method for financial statement purposes based on the following lives: 31