Keyword
in
Collection
Date
to
Marriott-Hot Shoppes, Inc., 1966 Annual Report
Image 28
Citation
MLA
APA
Chicago/Turabian
Marriott International, Inc.; Marriott Hot Shoppes. Marriott-Hot Shoppes, Inc., 1966 Annual Report - Image 28. 1966. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 19, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/62/show/57.

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 Hot Shoppes. (1966). Marriott-Hot Shoppes, Inc., 1966 Annual Report - Image 28. 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/62/show/57

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 Hot Shoppes, Marriott-Hot Shoppes, Inc., 1966 Annual Report - Image 28, 1966, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed July 19, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/62/show/57.

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.

URL
Embed Image
Compound Item Description
Title Marriott-Hot Shoppes, Inc., 1966 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
  • Marriott Hot Shoppes
Publisher Marriott International, Inc.; Marriott Hot Shoppes
Date 1966
Description Marriott-Hot Shoppes, Inc. Annual Report for the fiscal year ending on July 31, 1966.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Marriott International, Inc.
  • Marriott Hot Shoppes
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 28
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_037_028.jpg
Transcript Notes to Consolidated Financial Statements Marriott-Hot Shoppes, Inc. and Subsidiaries (1) Acquisition: The acquisition on January 4,1966, of 8 properties formerly leased by the company in exchange for 313,000 shares of common stock (approved by shareholders at the 1965 annual meeting) has been accounted for as a pooling of interests, and the financial statements have been restated on this basis. (2) Leases: Beginning with fiscal 1966, the company adopted the policy, recommended by the American Institute of Certified Public Accountants, of capitalizing, at the discounted amount of future rentals, leases which are in substance installment purchases of equipment and property. The cost of leasehold improvements made by the company on such properties has been reclassified from fixed assets to leasehold interests. The consolidated balance sheet as of July 25, 1965, has been restated to reflect this change. As of July 31, 1966, capitalized leases extend to 19'/< years with average annual rentals of approximately $3,000,000, which cover interest at 53/e to 6 per cent and principal amortization of mortgages and provide a nominal profit to the lessor. The statement of consolidated income for the 53 weeks ended July 31, 1966, includes interest of $1,274,000 and amortization of $1,627,000, which amounts approximate the rentals that would have been included under the previous practice. In addition to the foregoing leases, the company has other leases which are not required to be capitalized and which have terms up to a maximum of 33 years with an average of 12 years as of July 31, 1966. Minimum average rentals for leases expiring after three years amount to approximately $1,700,000 as of July 31, 1966. Most of these leases have renewal privileges and require additional rentals under percentage clauses relating to sales. Additional lease-purchase commitments aggregating $20,300,000 at July 31, 1966, have been made with corporations owned by the Marriott Foundation for projects which will be completed during the next 12 months. Under one of these commitments, the Foundation has paid $4,000,000 to the company as an advance of a portion of the purchase price. The Foundation in turn had borrowed such funds from an institutional lender and until completion of the sale-Ieaseback the company is contingently liable as guarantor of the loan. This amount has been netted against reimbursable construction costs under sale-leaseback and landlord agreements. [3] Federal Income Taxes: The company and its subsidiaries file separate income tax returns. Federal income tax returns for years prior to 1961 have been examined and settled or accepted as filed. The Federal income tax returns for years 1961, 1962, and 1963 are currently being examined by the Internal Revenue Service. Although the company has not received the Revenue Agent's report, it understands that, among other things, the agent is questioning intercompany rent payments. Any adjustments of such rent payments would tend to increase income taxes; however, the results of the examination can not be determined at this time. In the opinion of management, based on advice from tax counsel, any adjustments resulting from the examination will not have, in the aggregate, a material adverse effect on the company's consolidated financial position or consolidated earnings set forth in the accompanying financial statements. The provision for income taxes has been reduced by the investment credit m the amount of $380,000 and $168,900 for fiscal periods 1966 and 1965. The provision includes deferred income taxes of $1,130,072 and $602,843 for fiscal periods 1966 and 1965, respectively, relating to accelerated depreciation taken on fixed assets and on leasehold 'interests under lease-purchase obligations, (4) Mortgages and Notes: Mortgages and notes payable includes mortgages of $4,979,715, maturing to 1982 with interest rates of 4l/t to 57/s per cent and notes of $232,133, maturing to 1976 with interest rates of 4s112 to 6 per cent. (51 Deferred Stock Compensation: Deferred stock bonus awards and contracts have been made with one hundred ten management employees which contingently vest pro rata until retirement, after which the vested shares are distributed in ten annual installments. Adjusted for forfeitures, stock dividends and splits, a total of 103,696 shares have been awarded, of which 19,826 shares had vested on July 31, 1966. AUDITORS' REPORT TO THE SHAREHOLDERS AND BOARD OF DIRECTORS, MARRIOTT-HOT SHOPPES, INC.: We have examined the consolidated balance sheet of MARRIOTT-HOT SHOPPES, INC. (a Delaware corporation) AND SUBSIDIARIES as of July 31, 1966, and the related statements of consolidated income and surplus and source and application of funds for the fifty-three 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. In our opinion, the accompanying consolidated balance sheet and statements of consolidated income and surplus and source and application of funds present fairly the financial position of Marriott-Hot Shoppes, Inc. and Subsidiaries as of July 31, 1966, and the results of their operations and the source and application of their funds for the fifty-three weeks then ended, in conformity with generally accepted accounting principles which, except for the change (which -we approve) in accounting for lease-purchase obligations as explained in Note 2 to the consolidated financial statements, were applied on a basis consistent with that of the preceding period. ARTHUR ANDERSEN & CO. Washington, D.C., September 9, 1966 26