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Marriott Corporation, 1973 Annual Report
Image 30
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Marriott International, Inc.. Marriott Corporation, 1973 Annual Report - Image 30. 1973. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. September 24, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1696/show/1689.

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.. (1973). Marriott Corporation, 1973 Annual Report - Image 30. 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/1696/show/1689

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, 1973 Annual Report - Image 30, 1973, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed September 24, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1696/show/1689.

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, 1973 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1973
Description Marriott Corporation Annual Report for the 52 weeks ending on July 27, 1973.
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 30
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_044_030.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 representing 20% to 50% interests in companies are accounted for under the equity method. All material intercompany transactions have been eliminated. Foreign Operations: The consolidated financial statements include net assets in foreign countries of $12,806,000 at July 27, 1973, and $11,326,000 at July 28, 1972. Foreign sales and net income, as a percent of consolidated sales and net income, in 1973 were 10% and 11% and in 1972 were 9% and 11%, respectively. Financial statements of foreign subsidiaries have been translated into U. S. dollars as follows: liabilities and current assets at year end rates; property, equipment and depreciation reserves and expense at historical rates; and sales and expenses (except depreciation) at the approximate average monthly rates. Net results of translation of construction loans are credited or charged to the related property account; other gains or losses relating to translations and exchange transactions are included in net income. Construction Financing: Interest on construction financing of $2,802,000 in 1973 and $1,612,000 in 1972 was capitalized as part of the construction costs. See Note 4 for description of accounting for construction financing. Condominium Sales: During fiscal 1973, the Company began selling condominium units. Sales of condominium units are recorded when both parties are bound by terms of the contract and all conditions precedent to closing have been performed, including receipt of 25% down payment. On closing, the full purchase price is received in cash. Cost of condominium sales, including costs of units sold and related selling expenses, amounted to $3,307,000. Income Taxes: Deferred income taxes are recorded for timing differences between book and taxable income, principally depreciation, interest during construction, and deferred stock compensation. As a result of a Revenue Agent's Report received in 1973, several differences between book and tax income were eliminated. This has caused a reduction in deferred income taxes and in the deferred portion of the provision for United States taxes. In some foreign locations the tax rate is lower than the effective tax rate in the United States. Provision for United States taxes has not been made on unremitted earnings of foreign subsidiaries as these earnings are considered to be permanently invested. The Company's approximate equity in unremitted earnings of foreign subsidiaries, which are intended to be permanently invested, aggregated $3,167,000 at July 27, 1973. If this amount was distributed, United States taxes would be reduced by a substantial foreign tax credit. Investment tax credits are on the "flow-through" method, and are recognized in the year the related property and equipment are placed in service. U. S. income tax returns have been examined through 1970. 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 date awarded. Computation of Earnings Per Share: Earnings per share of common stock are based on the weighted average number of shares of common stock outstanding during each year, which was 30,163,544 for 1973 and 29,373,010 for 1972 (adjusted for 1973 21/2% stock dividend). Conversion of subordinated debt and distribution of shares reserved for warrant, stock purchase plans and deferred stock compensation agreements would not have a material effect on earnings per share. Cost in Excess of Net Assets of Businesses Acquired: Of the cost in excess of net assets of businesses acquired, $11,277,627 relates to companies acquired prior to October 31, 1970 and is not being amortized. The remaining $3,752,651 is being amortized over periods up to 40 years. Deferred Charges: Costs incurred prior to the opening of certain operations are deferred and amortized, following dates of opening, as follows: hotels—three years; theme parks—five years; and other major operations—one year. Such expenses for smaller operations are expensed as incurred. Deferred financing expenses are amortized over the term of the loan. Deferred lease expenses are amortized over the term of the lease. Miscellaneous deferred charges are amortized over periods up to 8 years. Carrying costs on land not currently used in operations are capitalized as land cost. Costs of developing data processing systems and research and development costs are expensed as incurred. Land Purchased for Resale or Future Operations: In connection with the development of properties, the Company often acquires extra land which is held for later disposition. The cost of carrying these properties is capitalized if the estimated realizable value 28