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Marriott Corporation, 1969 Annual Report
Image 27
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Marriott International, Inc.. Marriott Corporation, 1969 Annual Report - Image 27. 1969. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. March 2, 2021. https://digital.lib.uh.edu/collection/hiltonar/item/1729/show/1723.

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.. (1969). Marriott Corporation, 1969 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/1729/show/1723

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, 1969 Annual Report - Image 27, 1969, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed March 2, 2021, https://digital.lib.uh.edu/collection/hiltonar/item/1729/show/1723.

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, 1969 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1969
Description Marriott Corporation Annual Report for the 52 weeks ending on July 27, 1969.
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_040_027.jpg
Transcript few key executives under a restricted deferred compensation arrangement. The market value, as of the contract dates, in excess of cash received was $387,687 and is being expensed over the restriction periods which expire at various dates to 1980. The Company has a qualified stock purchase plan for eligible employees to purchase up to 102,500 shares of common stock at $33.71 per share under a Payroll Deduction Plan. Employees have signed Payroll Deduction Plan agreements for an aggregate of 31,000 shares which the employees may purchase in February 1970 at the employees' discretion. (7) Convertible Subordinated Debt: During 1969, the Company issued $20,000,000 of 5%% convertible subordinated notes and $8,000,000 of 6%% convertible subordinated debentures due in 1989. The debt can be converted into common stock as follows: Unissued Common Amount Conversion Price Stock Reserved $ 5,000,000 1 5,000,000 8,000,000 $36.80 39.50 41.00 135,869 379,746 195,121 710,736 The $36.80 conversion price for the $5,000,000 in notes can be reduced to as low as $32.00 per share depending on the market price of the stock during October 1971. The $8,000,000 debentures are convertible after December 15, 1969 and the $20,000,000 notes are convertible at any time. All conversion prices are subject to antidilution provisions. Annual principal payments of $2,000,000 begin May 1980, on the $20,000,000 notes. Annual principal payments of $400,000 on the $8,000,000 debentures begin June 1979. The $20,000,000 note agreements require the Company to limit cash dividends not to exceed cumulative net income after July 28, 1968, plus $3,000,000. In June 1969, the $10,000,000 of convertible subordinated notes issued in 1968 were converted into 383,876 shares of common stock. (8) Common Stock: Subject to stockholders' ratification at the annual meeting in November, the Board of Directors has voted to increase the Company's authorized common stock to 30,000,000 shares and adopted a restricted stock plan under which a specified number of shares not to exceed 25,000 shares in any fiscal year will be offered to key employees at a fixed minimum cost, usually $1.00 per share. Earnings per share are based on the weighted average shares outstanding of 11,716,667 in 1969 and 11,559,690 in 1968. (9) Changes in Accounting: In prior years the Company has followed the policy of expensing pre-opening expenses as incurred for all divisions. However, during 1969 the Company accelerated its hotel expansion, adding 1,810 new rooms, an increase of 61% in number of rooms, and entered the international hotel market. This is three times greater than any other year of expansion. Consequently, management believes that the large pre-opening expenses for hotels in 1969 would cause fluctuations and distortions in reported earnings since the hotels do not open with the degree of regularity as do the operating units of other divisions of the Company. Accordingly, the Company adopted, as of the beginning of 1969, the policy of deferring pre-opening expenses for new hotels and amortizing such expenses over three years to more properly match these expenses with the revenue from the hotels. This policy and similar policies are followed by many other hotel chains. The Company continues to expense, as incurred, the pre-opening expenses related to its other divisions. As of the beginning of 1969, the Company changed its pricing method for the deferred stock contracts as described in Note 6. The shares vested (earned) are now valued at the market price on the date the contracts were awarded, adjusted for subsequent stock dividends and splits. Previously, the shares vested (earned) were valued at the market price at the beginning of the year in which the shares were vested (earned). If the foregoing changes, which resulted partly from new operating conditions, had not been made, income before extraordinary items and net income for 1969 would have been $500,000 less. AUDITORS' REPORT To the Shareholders and Board of Directors of Marriott Corporation: We have examined the consolidated balance sheet of MARRIOTT CORPORATION (a Delaware corporation) AND SUBSIDIARIES as of July 27, 1969, and the related statements of consolidated income, shareholders' investment and source and application of funds for the fifty-two weeks then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. We have previously examined and reported on the financial statements for the preceding year. In our opinion, the accompanying consolidated balance sheet and statements of consolidated income, shareholders' investment and source and application of funds present fairly the financial position of Marriott Corporation and Subsidiaries as of July 27, 1969, and the results of their operations and the source and application of their funds for the fifty-two weeks then ended, in conformity with generally accepted accounting principles which, except for the changes in accounting for pre-opening expenses and deferred stock contract compensation as described in Note 9 to the consolidated financial statements, were applied on a basis consistent with that of the preceding year. ARTHUR ANDERSEN & CO. Washington, D.C, September 26, 7969. 25 ■H B ■ NEi