University of Houston, 4333 University Drive, Houston TX 77204-2000, (713) 743-1050.
© 2013 University of Houston. All rights reserved.
| Title | Marriott Corporation, 1983 Annual Report |
| Creator (LCNAF) |
|
| Publisher | Marriott International, Inc. |
| Date | 1983 |
| Description | Marriott Corporation Annual Report for calendar year 1983. |
| Subject.Topical (LCSH) |
|
| Subject.Name (LCNAF) |
|
| Genre (AAT) |
|
| Language | English |
| Type (DCMI) |
|
| 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 |
| Title | Image 26 |
| Format (IMT) |
|
| File Name | hiltonar_201609_055_026.jpg |
| Transcript | •■'■■■" ' Current Value Increases Shareholders' equity per share, expressed on a Current Value basis, increased to $70.66 in 1983 from $62.15 in 1982. This compares favorably with the historical cost book value of $23.37 per share. Historical cost accounting understates both the value of Marriott's real estate-based assets and its investment capacity. The company's Current Value balance sheet restates historical cost assets and liabilities to reflect 1983 year-end valuations as well as the value of hotel management agreements. Current Value is based on the company's productive capacity and does not include anticipated growth. Therefore, it does not reflect the intrinsic value of Marriott. As shown, Current Value shareholders' equity increased 15% during 1983, primarily from strong discretionary cash flow and new hotel management agreements. The $1.3 billion increase in restated shareholders' equity, from $628 million at historical cost to $1.9 billion at Current Value, results from a consistent policy of owning and managing real estate assets prudently financed with debt. Changes in Current Value Shareholders' Equity Millions Current Value at December 31,1982 Discretionary Cash Flow New Hotel Management Agreements Deferred Taxes and Other Current Value at December 30,1983 Per Share $1,650 $62.15 246 8.85 38 1.37 (35) (1.71) $1,899 $70.66 Condensed Consolidated Current Value Balance Sheet as of December 30,1983 (in thousands) Current Historical Value Cost Current Assets Property and Equipment, net Hotel Management and Lease Agreements Investments in and Advances to $ 401,370 $ 401,370 2,642,302 1,791,782 462,432 Affiliates 127,581 68,412 Other Assets 222,951 239,864 $3,856,636 $2,501,428 Current Liabilities $ 493,921 $ 493,921 Debt and Capital Lease Obligations 1,023,954 1,071,611 Other Long-Term Liabilities 60,009 60,009 Deferred Income Taxes 379,646 247,683 Shareholders' Equity 1,899,106 628,204 Percentage of Debt and Capital Lease Obligations to Total Capital 30.5% 53.4% Basis of Valuations Property and equipment, hotel management agreements and investments in affiliates are valued on the basis of the present worth of estimated future cash flows after certain deductions, primarily anticipated asset maintenance requirements. Goodwill and deferred costs are assigned no value. Debt and capital lease obligations are discounted to present value. Discount rates reflect current market rates. Deferred income taxes are provided to reflect the present value of projected income tax payments arising from the difference between assets' current value and net tax value. 24 |