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Marriott Corporation, 1975 Annual Report
Image 34
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Marriott International, Inc.. Marriott Corporation, 1975 Annual Report - Image 34. 1975. 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/1560/show/1553.

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 34. 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/1553

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 34, 1975, 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/1560/show/1553.

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 34
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_046_034.jpg
Transcript Buildings and improvements Leasehold improvements 25 to 45 years Shorter of life of lease or asset 2 to 15 years 20 years 10 years Furniture and equipment Cruise ships Alarm systems Maintenance and repairs are expensed. New unit costs include interest, rent charges and real estate taxes incurred during construction. Replacements and improvements, including most costs of converting units, are capitalized. Costs of replaced property less accumulated depreciation and salvage are charged or credited to income. Royalty and Franchise Fees: Royalty fees are accrued on a monthly basis. Initial franchise fees are not significant. 2. ACQUISITIONS AND DISPOSITIONS: During fiscal 1975, the Company disposed of its controlling interests in Marriott de Montis In-Flite Services in Rome and Milan, Italy and in exchange acquired all of the outstanding minority interests in Marriott de Montis operations in Madrid and Malaga, Spain; Lisbon and Faro, Portugal; Athens, Greece (except for 10%); Frankfurt, Germany and Johannesburg, South Africa. In addition, the Company acquired six companies in the United States. In connection with these acquisitions and exchange the Company issued 179,000 shares of common stock and paid $5,733,000. Four of these acquisitions were accounted for as poolings of interests and the remaining were accounted for as purchases. The purchase price of the acquisitions accounted for as purchases was $3,065,000 in excess of net assets acquired. The net effect of these transactions on sales and earnings in the accompanying financial statements is not significant. 3. INVESTMENTS: The Company has a 49% equity interest (with 50% voting rights) in Duman Investments, Inc., the landlord of the New Orleans Marriott Hotel, which is leased to the Company for 55 years including renewal options, with rentals based on profits. At July 25, 1975, Duman had total assets of $31,468,000 and total liabilities of $27,536,000, of which $776,000 are current liabilities. The Company has guaranteed a $5,000,000 bank loan due in 1977. The Company has a 45% equity interest in Sun Line Greece Special Shipping Company, Inc., the owner of the M.S. Stella Solaris. At its fiscal year end (March 31, 1975), Sun Line Greece had total assets of $21,411,000 and total liabilities of $17,966,000, including $11,334,000 of debt, and $4,000,000 advanced by the stockholders, of which $1,800,000 was the Company's share. The Company has guaranteed 45% of the debt. The Company's total investment in and advances to Sun Line Greece is $7,705,000 at July 25, 1975. The excess of the Company's investment over the underlying net assets of minority-owned affiliates is $3,265,000 and is being amortized over periods up to 32 40 years. 4. INCOME TAXES: Reconciliation of the United States statutory tax rate of 48% and the Company's consolidated income tax rate follows: 1975 1974 United States income tax rate 48.0% 48.0% State income taxes on U.S. pre-tax income, net of U.S. tax benefit 3.4 3.3 Foreign earnings and losses subject to aggregate tax rate less than 48% 0.7 (1.7) Other items, net (1.2) (3.4) Effective gross income tax rate 50.9 46.2 Investment tax credit (7.7) (4.9) Effective net income tax rate 43.2% 41.3% Deferred income tax provisions are attributable to: Excess of tax over book 1975 1974 deduction—■ Depreciation $3,353,000 $2,838,000 Interest 4,859,000 2,458,000 Other terns, net 1,502,000 1,446,000 $9,714,000 $6,742,000 DEBT: Maturities of Debt at July 25,1975: Mortgage Unsecured Notes Notes And And Interim Convertible Construction Subordinated Fiscal Yea Financing Debt Total Interest rates 5.2%-10.25% 4.25%-10.0% 1977 $ 8,925,000 $ 5,802,000 $ 14,727,000 1978 8,906,000 5,146,000 14,052,000 1979 7,818,000 12,462,000 20,280,000 1980 7,717,000 16,205,000 23,922,000 to 1997 178,717,000 110,566,000 289,283,000 $212,083,000 $150,181,000 $362,264,000 The Company has debt of $120,075,000 as of July 25, 1975 at interest rates which vary based on the prime lending rate or London Euro-dollar interbank rate. Summary of Pledging of Assets: As of July 25, 1975, property and equipment, at cost excluding land and ship purchased for future operations or resale and construction in progress, totals $575,542,000, of which $312,434,000 is pledged. Construction Financing and Revolving Loan Agreements: The Company uses revolving loan commitments, short term loans and commercial paper for interim financing, primarily for construction. Such financing is classified in the consolidated balance sheet as non- current indebtedness to the extent that the loans and commercial paper mature beyond the permanent loan take-out or to the extent that the Company has funds available under its revolving loan agreements maturing beyond one year. The above maturity table reflects the maturities of such financing on the basis of the permanent loan payment schedule or the maturity