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Marriott Corporation, 1979 Annual Report
Image 23
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Marriott International, Inc.. Marriott Corporation, 1979 Annual Report - Image 23. 1979. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. January 27, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/637/show/621.

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.. (1979). Marriott Corporation, 1979 Annual Report - Image 23. 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/637/show/621

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, 1979 Annual Report - Image 23, 1979, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed January 27, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/637/show/621.

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, 1979 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1979
Description Marriott Corporation Annual Report for calendar year 1979.
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 23
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_051_023.jpg
Transcript picture of economic performance. This may lead to poor strategic and investment decisions. The Financial Accounting Standards Board (FASB) has recently addressed the problem of financial reporting during inflationary periods. Beginning in 1979 firms are required to present supplemental financial information that reflects the effects of general inflation. This Constant Dollar information required by the FASB is included in the Notes to Consolidated Financial Statements on page 30. 'Current Value' Presented Each industry and company is impacted differently by inflation. In 1980, the FASB will require additional information which adjusts a company's balance sheet accounts and certain expenses to reflect specific changes caused by inflation. Management believes Current Value is the best method for tracking Marriott's economic performance. The accompanying table shows management's analysis of 1979 performance on a Current Value basis which differs from the present FASB definition. The company's Current Value statement eliminates much inflation- and accounting-induced distortion: • It values most fixed assets on a discounted cash flow basis, net of anticipated future capital requirements, thereby eliminating the valuation distortions caused by conventional depreciation accounting. • It reports an improved measure of annual economic profit—"Discretionary Cash Flow"—which disregards accounting depreciation and substitutes the actual required capital expenditures made for Current Value Statement (Dollars in thousands) CHANGES IN SHAREHOLDERS' EQUITY Current Value, December 29,1978 Discretionary cash flow Reduction in current value of debt Increase in current value of assets Purchase of treasury stock Cash dividends Common stock issued and other $ 767,719 99,123 25,287 77,227 (74,187) (5,776) 3,810 Current Value, December 28,1979 $ 893,203 SHAREHOLDERS' EQUITY Non-monetary Assets (primarily property and equipment) Less: Net Monetary Liabilities- Senior debt and capital leases Convertible debt Other monetary liabilities, net Historical Cost $927,287 365,279 26,918 121,587 Current Value $1,356,244 320,736 20,718 121,587 Shareholders' Equity, December 28,1979 513,784 $413,503 463,041 $ 893,203 SENIOR DEBT AND CAPITAL LEASES TO TOTAL CAPITAL GAIN FROM DECLINE IN PURCHASING POWER OF NET MONETARY LIABILITIES 41% 24% Negative working capital Debt and other monetary liabilities $ 6,322 48,787 $ 55,109 maintenance of property, plant, and equipment. It recognizes annual gains in purchasing power from repaying debt in cheaper, inflated dollars. Accounting convention charges the inflation component of interest against current earnings, but does not reflect the benefits of debt. It reflects the gains from reductions in the current value of debt previously committed at comparatively low interest rates. Inflation and Marriott's Business Profile Marriott is well positioned to weather inflation: 1. The company's businesses—led by hotels—have demonstrated the ability to at least maintain operating profit margins in response to inflation. Well-located real estate assets with no long-term pricing commitments afford Marriott the market leverage and flexibility to increase selling prices in response 21