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Marriott Corporation, 1979 Annual Report
Image 30
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Marriott International, Inc.. Marriott Corporation, 1979 Annual Report - Image 30. 1979. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 7, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/637/show/628.

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 30. 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/628

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 30, 1979, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed July 7, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/637/show/628.

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 30
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_051_030.jpg
Transcript Notes to Consolidated Financial Statements SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation: The consolidated financial statements include the accounts of the Company and all subsidiaries. Investments in companies representing 20% to 50% interests are accounted for under the equity method. All material intercompany transactions and balances have been eliminated. Foreign Operations: The consolidated financial statements include net assets of foreign subsidiaries and affiliates of $60,755,000 at December 28,1979 and $56,574,000 at December 29,1978. Foreign sales and net income after interest, intercompany charges and foreign taxes, as a percent of consolidated sales and net income, were 9% and 18% in 1979 and 8% and 17% in 1978, respectively. Foreign exchange translation losses were $13,000 in 1979 and $302,000 in 1978. Theme Parks: Theme park costs incurred during the off-season are deferred (included in prepaid expenses) and charged to expense during the operating,season based on budgeted sales. Property and Equipment: Depreciation and amortization are calculated on the straight- line method for financial statement purposes as follows: Buildings and improvements—25 to 45 years Leasehold improvements —shorter of life of lease or asset Furniture and equipment —2 to 15 years Cruise Ships —20 years Maintenance and repairs are expensed. New unit costs include interest, rent charges and real estate taxes incurred during construction. Replacements and improvements, including most costs of converting units, are capitalized. Upon sale or retirement of property and equipment (excluding normal sales or retirements of theme park rides and equipment), the costs less accumulated depreciation and salvage are charged or credited to income. Theme park rides and equipment are depreciated under the composite method and no gain or loss is recognized on normal sales or retirements. Cost In Excess of Net Assets of Businesses Acquired: Of the cost in excess of net assets of businesses acquired, $12,936,000 relates to acquisitions prior to October 31,1970 (at which time amortization became mandatory) and is not being amortized because in the opinion of management it has continuing value. The remaining $6,170,000 at December 28,1979 is being amortized over periods of up to 40 years. Pre-Opening Costs: Costs incurred prior to opening are deferred and amortized over three years for hotels, five years for theme parks and one year for other major operations. Similar costs for all other operations are expensed as incurred. Income Taxes: United States and foreign income taxes are based on reported income. Deferred income taxes are provided for timing differences between book and taxable income, principally depreciation, interest and stock compensation. Investment tax credits are accounted for using the "flow-through" method. Provision for United States taxes has not been made on unremitted earnings of foreign subsidiaries because management considers these earnings to be permanently invested. Total unremitted earnings were $25,611,000 as of December 28,1979. Computations of Earnings Per Share: Primary earnings per share are based on the weighted average number of shares outstanding during each year, adjusted for the dilutive effect of employee stock options and deferred stock compensation and the conversion of convertible debentures which are common stock equivalents. Fully diluted earnings per share also assumes the conversion of all convertible debt. Primary and fully diluted shares totaled 36,435,693 and 36,757,983, respectively, in 1979. INVESTMENTS The Company's investments in and advances to less than 50% owned affiliates include the following: 1979 1978 Hotel ventures Sun Line Greece Special Shipping Company Other ventures $16,708,000 $16,863,000 7,270,000 5,869,000 3,182,000 2,774,000 $27,160,000 $25,506,000 The Company has interests in four ventures that own hotels operated by the Company under long-term agreements. Rental payments by the Company to the ventures are based solely on profits of the hotels. At December 28,1979, combined assets and liabilities of these hotel ventures were $188,080,000 and $143,655,000, including mortgages of $130,857,000. The mortgages are secured solely by venture assets without recourse to the Company. The Company also has investments in five other ventures presently constructing hotels that will be operated by the Company. At November 30,1979, Sun Line Greece Special Shipping Company had total assets of $22,520,000 and liabilities of $11,357,000, including $6,075,000 of debt. The Company has guaranteed 45% of this debt. The excess of the Company's investment over its equity in the underlying net assets of less than 50% owned affiliates is $2,523,000 and is being amortized over periods up to 40 years. INCOME TAXES 1979 1978 Current—U.S. and State $45,746,000 $29,138,000 —Foreign 4,347,000 3,359,000 Deferred 8,786,000 13,837,000 Tax credits Investment tax credit (5,300,000) (4,850,000) Salaried Employee Stock Ownership Plan (833,000) (485,000) Jobs tax credit (601,000) $52,145,000 — Provision for income taxes $40,999,000 The deferred provision is primarily attributable to the tax effect of excess tax over book depreciation which amounted to $9,529,000 and $11,304,000 in 1979 and 1978, respectively. 28