Based on actual asset sales, Marriott's Current Value
estimates are conservative. Marriott has sold assets for
$1.5 billion since Current Value was instituted in 1979,
including hotels, theme parks and specialty restaurants.
The Current Value of the liquidated assets was $1.3 billion,
and each sale was in excess of Current Value.
The $1.4 billion increase in restated shareholders'
equity, from $676 million to $2.1 billion at Current
Value, results from a consistent policy of owning and
managing real estate assets prudendy financed with debt.
Changes in Current Value Shareholders' Equity
Current Value at December 30,1983
Discretionary Cash Flow from
New Hotel Management Agreements
Common Stock Repurchase
Deferred Taxes and Other
Current Value at December 28,1984
Condensed Consolidated Current Value Balance Sheet
as of December 28,1984
Property and Equipment, net
Hotel Management and Lease
Investments in and Advances to
Debt and Capital Lease Obligations
Other Long-Term Liabilities
Deferred Income Taxes
Percentage of Debt and Capital Lease
Obligations to Total Capital
i 430,099 $ 430,099
! 573,986 $ 573,986
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
Deferred income taxes are provided to reflect die present value of projected
income tax payments arisingfrom the difference between assets' current value
and net tax value.