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Marriott Corporation, 1975 Annual Report
Image 35
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Marriott International, Inc.. Marriott Corporation, 1975 Annual Report - Image 35. 1975. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. February 23, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1560/show/1554.

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 35. 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/1554

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 35, 1975, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed February 23, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1560/show/1554.

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 35
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_046_035.jpg
Transcript schedule of the revolving/term loan agreements discussed below. As of July 25, 1975, the Company has spent $83,000,- 000 on major construction projects which will be completed over the next two years at an estimated total cost of $147,000,000 ($120,000,000 relates to theme parks). To finance the additional expenditures on these projects, the Company has obtained permanent mortgage loan commitments of $16,000,000; has $86,- 000,000 remaining funds available under its aggregate of $181,000,000 revolving loan commitments discussed below; and has obtained additional permanent mortgage loan commitments of $13,000,000 on existing operating properties. In addition, the Company has unused bank credit lines aggregating $32,000,000. Interim construction financing in the consolidated balance sheet includes amounts borrowed on projects where the Company has obtained permanent mortgage loan commitments. Interim construction financing averaged $26,000,000 during 1975 and $19,700,000 during 1974 (weighted average interest rates of 11% and 9%, respectively) with a maximum loan balance of $38,800,000 in 1975 and $39,400,000 in 1974. As of July 25, 1975, the Company has unsecured revolving loan agreements of $31,000,000 which mature on December 31, 1977, and bear interest based on the prime rate. An aggregate of $11,900,000 in the form of draw-downs and short term debt has been borrowed against these loan agreements and is included in interim construction financing and mortgage notes payable at July 25, 1975. The Company also has commitments of $150,000,000 under revolving/term loan agreements which primarily revolve through June 30, 1978, at which time they convert to term loans. These agreements bear interest based on the prime rate or the London Euro-dollar interbank rate. At July 25, 1975, an aggregate of $83,- 000,000 in the form of draw-downs, certain construction accruals and other short term debt had been borrowed against these revolving/term loan agreements and is included in unsecured notes payable. Borrowings against all revolving loan agreements averaged $80,300,000 during 1975 and $3,500,000 during 1974 (weighted average interest rates of 10% and 12%, respectively) with a maximum balance of $118,- 300,000 in 1975 and $46,000,000 in 1974. The revolving loan agreements require the Company to meet certain requirements including, among other things, the maintaining of minimum working capital, net worth, and a debt-to-equity ratio (as defined). A commitment fee of up to a maximum of i/g of 1% per year is payable on the unused portion. Short Term Loans: The short term loans of $2,752,000 at July 25, 1975 and $3,763,000 at July 26, 1974 are foreign overdraft accounts. Short term bank loans, including U.S. borrowings for working capital purposes, averaged $3,400,000 during 1975 and $13,100,000 during 1974, at weighted average interest rates of 9.5% and 10%, respectively. The maximum outstanding balance was $12,800,000 in 1975 and $29,700,000 during 1974. Compensating Balances: All compensating balance agreements are informal and do not legally restrict withdrawal of funds. Under certain bank agreements in effect at July 25, 1975, the Company maintains average compensating balances of $13,225,000 after adjustment for estimated average bank float. The balances maintained are equal to a percentage (10% to 20%) of the amounts available or borrowed. Convertible Subordinated Debt: 414 % Convertible Subordinated Notes due 1992, convertible at $41.35 per share 514% Convertible Subordinated Note due 1988, convertible at $31.31 pershare 5% Convertible Subordinated Debentures due 1988, convertible at $31.31 per share $ 4,995,000 15,000,000 12,245,000 $32,240,000 Conversion prices are subject to anti-dilution provisions. The agreements have cash dividend restrictions, but at July 25, 1975, all retained earnings are unrestricted. LEASES: The Company has 495 non-cancelable leases (primarily real estate and shopping center space) which have not been capitalized. Minimum future rentals under non-cancelable leases are as follows: Financing Leases Fiscal Year (as defined by the SEC) Other Leases 1976 $ 9,566,000 $ 8,610,000 1977 9,605,000 9,037,000 1978 9,580,000 8,388,000 1979 9,568,000 7,462,000 1980 9,496,000 7,196,000 1981-1985 46,615,000 31,830,000 1986-1990 42,319,000 13,291,000 1991-1995 28,810,000 8,512,000 Thereafter 28,148,000 9,769,000 $193,707,000 $104,095,000 Minimum annual rentals on non-capitalized financing leases were $8,730,000 in 1975 and $6,369,000 in 1974. Certain leases require additional rentals based on sales or profits (as defined). Additional rentals based on sales were $12,587,000 in 1975 and $11,492,- 000 in 1974, and based on profits (as defined) were $5,822,000 in 1975 and $5,231,000 in 1974, including $1,268,000 in 1975 and $1,235,000 in 1974 on noncapitalized financing leases. Most leases contain one or more renewal options, generally for five or ten year periods. If non-capitalized financing leases were capitalized, the present values of the minimum lease commitments would be $91,872,000 at July 25, 1975 and $78,319,- 000 at July 26, 1974. Present values are computed by discounting net lease payments at the interest rate implicit at the time of entering into the lease. These rates ranged from 4.4% to 9.9% with a weighted average rate of 8.3%. If non-capitalized financing leases were capitalized 33