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Marriott Corporation, 1970 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1970 Annual Report - Image 27. 1970. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. November 21, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1630/show/1624.

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.. (1970). Marriott Corporation, 1970 Annual Report - Image 27. 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/1630/show/1624

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, 1970 Annual Report - Image 27, 1970, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed November 21, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1630/show/1624.

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, 1970 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1970
Description Marriott Corporation Annual Report for the 53 weeks ending on July 31, 1970.
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 27
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_041_027.jpg
Transcript Company to repay any amounts borrowed thereunder from the proceeds of its proposed sale of common stock discussed in Note 10 or. in -the event the stock is not sold, then from other sources at a date not later than December 31. 1971. In any event, the commitment will be reduced by the amount of any such proceeds. 5. Stock Compensation and Stock Purchase Plan: Deferred stock bonus awards and contracts have been made with 308 employees. The shares contingently vest pro rata until retirement, after which they are distributed in ten annual installments (see Note 8 for present accounting policies). Adjusted for forfeitures, stock dividends and splits, shares awarded, contingently vested and fully vested are as follows: July 31. 1970 July 27, 1969 Shares awarded Shares contingently vested. Shares fully vested 305,230 59,378 62,386 287.561 94,122 9,291 The Company has a qualified stock purchase plan for employees to purchase up to 81,186 shares of common stock under a Payroll Deduction Plan. The purchase price is the quoted market value at January 2, 1970 ($36.81 per share, adjusted for the 21/2% stock dividend paid in 1970) or 100% of the quoted market value at January 31, 1971, whichever is less. The number of shares reserved for issuance and the purchase price under the plan are both subject to adjustment as a result of antidilution provisions. Approximately 1600 employees are participating in the 1970 plan. Their current rate of payroll deductions indicates that approximately 40,300 new shares (based on the July 31, 1970 quoted market price) may be purchased at the employees' discretion in 1971. Under the fiscal 1969 plan employees purchased 23,442 shares, in 1970. 36,250 shares of common stock have been issued to key executives under restricted deferred compensation agreements. The market value, as of the contract dates, in excess of cash received was $1,101,581 and is being expensed ($35,456 in 1970) over the restriction periods which expire at various dates to 1981. For contracts representing 19,700 of these shares, the number of shares, if any, to be released from the restrictions each year is dependent upon the increase in the Company's consolidated earnings each year over the prior year and because of these restrictions, the excess of market value over cash received ($525,744) will be recorded (charged to expense) as the restrictions are released. 6. Convertible Subordinated Debt: Fiscal Year Amount Outstanding Issued Due July 27, 1969 July 31, 1970 Interest Rate Current Conversion Unissued Common Price Stock Reserved 1969 1969 1969 $ 5,000,000 $ 5,000,000 5'/i% 15,000,000 15,000,000 SYi% 8,000,000 7,840,000 6'/,% $28,000,000 $27,840,000 $35.90 38.54 40.00 139,266 389,239 196,000 724,505 The $35.90 conversion price for the $5,000,000 in notes can be reduced to $31.22 per share depending on the market price of the stock during October, 1971. All conversion prices are subject to antidilution provisions. The subordinated debt is convertible into common stock at any time. Annual principal payments of $2,000,000 begin May, 1980, on the 51/a% notes. Annual principal payments of $400,000 on the 6%% debentures begin June ,1979. The 5%% note agreements require the Company to limit cash dividends to an amount not in excess of cumulative net income after July 28,1968, plus $3,000,000. 7. Earnings Per Share: Earnings per share have been calculated based on weighted average shares outstanding during the year, 12,425,941 shares in 1970 and 12,009,584 shares in 1969. Conversion of the outstanding subordinated debt and distribution of the total shares under deferred stock compensation agreements has no material effect on earnings per share for fiscal 1969 or 1970. 8. Accounting Policies: Depreciation: Depreciation and amortization are calculated on the straight- line method for financial statement purposes and, where permitted, on accelerated methods for tax purposes, based on the following lives: Land Improvements 3 to 20 Years Buildings and Improvements.... 20 to 40 Years Leasehold Improvements. .... .Shorter of Life of Lease or Assets Furniture and Equipment 4 to 20 Years Automotive Equipment 2 to 8 Years Leasehold interest under lease- purchase obligations: Equipment 4 to 20 Years Buildings and Improvements.. 20 to 45 Years Income Taxes: Deferred income taxes are recognized primarily for differences between book and tax accounting for depreciation, interest during construction, pre-opening expenses, payments to individuals for covenants not to compete obtained in connection with acquisitions, and deferred stock compensation. U.S. taxes are not accrued on undistributed profits of foreign subsidiaries, because management believes such profits to be permanently invested. Such taxes through 1970, after foreign tax credits, would not be material. Deferred Stock Compensation: Compensation for deferred stock bonus awards is recorded in the year in which the bonus is earned, based on the quoted market price on the date awarded, and for deferred stock contracts is recorded for the shares contingently vested in each fiscal year based on the quoted market price as of the date of the contracts, adjusted for subsequent stock dividends and splits. The future income tax benefit to the Company when shares are issued to retired employees is accrued as a reduction of the deferred tax liability based on the quoted market price when the awards are made. Deferred Financing and Pre-opening Expenses: Underwriting fees, debt discount, commissions and expenses of long-term financing are deferred and amortized over the life of the loan. Employee costs, supplies and services required to make ready new hotels and major hotel additions are deferred until the property is open for business, after which the pre-opening expenses are amortized over three years. Pre-opening expenses of other operations are expensed as incurred. 9. Short-term Investment: The Company has a note purchased for $4,087,500 which matures in December 1971 at a face amount of $5,000,000. On July 31, 1970 the Company sold to its Employees Profit Sharing Trust, at the Company's prorated discount cost, a participation interest of $500,000 in this note. The Company's remaining interest in the note as of July 31. 1 970 is included in short-term investments, since the note is currently marketable at a price which approximates cost. Subsequent to July 31, 1970 an additional $1,100,000 participation was sold to the Trust. The Company believes that this participation provides the Trust with a convenient means of temporarily investing reserve funds without incurring brokerage costs. The Company has agreed to repurchase the participation at the convenience of the Trust at the prorated discount cost. 10. Proposed Financing and Changes in Working Capital: The Board of Directors has authorized the sale of approximately 900,000 shares of common stock and the Company is in the process of filing a registration statement with the Securities and Exchange Commission. Proceeds from the proposed sale of the Company's common stock will be used to retire the short-term financing covered by the bank loan commitment discussed in Note 4. The Company's net working capital decreased significantly since July 31,1970 primarily as the result of additional construction expenditures, additional short- term borrowings, and additional advances made to the unconsolidated finance subsidiary discussed in Note 2. The Company is presently negotiating with banks to obtain a five year commitment to provide a loan or loans of up to $15,000,000. 25