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Marriott Corporation, 1979 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1979 Annual Report - Image 31. 1979. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 10, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/637/show/629.

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 31. 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/629

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 31, 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 10, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/637/show/629.

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 31
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_051_031.jpg
Transcript Reconciliation of the United States statutory tax rate and the Company's consolidated income tax rate follows: United States income tax rate State income taxes, net of U.S. tax benefit Foreign earnings and losses subject to aggregate tax rate less than U.S. rates Other items, net Effective gross income tax rate Tax credits Effective income tax rate DEBT Maturities of debt at December 28,1979 are: 1979 46.0% 3.6 (3.3) 1.5 1978 48.0% 3.4 (2.6) (0.2) 47.8 48.6 (5.5) (5.6) 42.3% 43.0% 1981 $ 17,909,000 1982 23,645,000 1983 27,327,000 1984 34,581,000 2010 265,051,000 $368,513,000 The Company has debt of $123,900,000 as of December 28, 1979 at interest rates which vary based on the prime lending rate or London Euro-dollar interbank rate. Interest rates on other debt range from 4.25% to 10.25%. The Company's loan agreements require the Company to meet certain requirements including, among other things, maintaining minimum net worth and asset-to-debt and debt-to-equity ratios. The loan agreements also have restrictions on cash dividends, other payments and the pledging of certain assets. At December 28,1979 retained earnings of $52,477,000 are unrestricted and $292,985,000 of property and equipment, at net book value, is pledged or mortgaged. See Subsequent Event footnote for a discussion of these restrictions subsequent to fiscal year-end. Unsecured debt at year-end consists of the following: Senior Notes Payable with interest at 83/4% and maturing 1983 to 1997 $ 40,000,000 Notes Payable with interest at 8% to 10% and maturing 1981 to 2010 12,775,000 Short-term debt, primarily commercial paper, with average interest at 13.8% and borrowed against $129,000,000 of available revolving credit agreements maturing through 1989 125,300,000 $178,075,000 The Company uses revolving loan commitments, short-term loans and commercial paper for its interim financing. Such financing is classified as noncurrent indebtedness to the extent that the Company has funds available under its revolving loan agreements maturing beyond one year. The above maturity table reflects the maturities of unsecured debt on the basis of the permanent loan repayment schedule, the maturity schedule of revolving credit agreements discussed below and management's estimation of prepayments. Borrowings against all revolving loan agreements averaged $69,531,000 during 1979 and $32,800,000 during 1978 (at weighted average interest rates of 11.8% in 1979 and 8.2% in 1978) with a maximum balance of $125,300,000 in 1979 and $58,900,000 in 1978. Additionally, a commitment fee of up to one-half of one percent is payable on the unused portion. The Company has unused bank credit lines aggregating $27,500,000. Under certain bank agreements the Company maintains average compensating balances equal to a percentage (3%-10%) of the amounts available or borrowed. All compensating balance agreements are informal and do not legally restrict withdrawal of funds. The average compensating balance during 1979 was $6,303,000. LEASES Minimum future rentals under non-cancelable leases (primarily real estate and shopping center space) are as follows: Fiscal Year Capital Leases Operating Leases 1980 $ 3,025,000 $ 14,982,000 1981 3,014,000 14,742,000 1982 3,000,000 14,817,000 1983 2,976,000 15,025,000 1984 2,970,000 14,099,000 Thereafter 31,052,000 137,478,000 Total minimum lease payments 46,037,000 $211,143,000 Amounts representing interest (21,371,000) Present value of net minimum lease payments 24,666,000 Current portion of capital lease obligations (982,000) Long-term capital lease obligations $ 23,684,000 Rent expense consists of: 1979 1978 inimum rentals on operating leases $17,410,000 $17,479,000 dditional rentals based on sales —operating leases 10,928,000 10,868,000 —capital leases 836,000 557,000 $29,174,000 3,904,000 Rentals on operating leases based solely on hotel profits $47,981,000 $22,032,000 Most leases contain one or more renewal options, generally for five- or ten-year periods. CAPITAL STOCK Sixty million shares of common stock, with a par value of $1 per share, are authorized, of which 36,900,144 were issued at December 28,1979 and 36,891,073 were issued at December 29,1978, including treasury stock of 4,801,811 and 176,428, respectively. One million shares of preferred stock, without par value, are authorized. As of December 28,1979 no preferred shares have been issued. Total common stock shares reserved at December 28,1979: Employee stock option plans 1,837,048 Conversions of convertible subordinated debt, at prices ranging from $29.26 to $38.44 per share 899,643 Deferred stock compensation program (467,128 shares fully vested) 934,321 Employee qualified stock purchase plan 1,036,496 Restricted stock plan for key employees 76,000 Exercise of warrant, at $22.10 per share (expires 1981) 13,576 Total shares reserved 4,797,084 Options to purchase shares of common stock may be granted to key employees, under the 1974 and 1976 employee stock option plans, at not less than 100% of the fair market value on the date of grant. All options expire ten years after the date of grant and are exercisable in cumulative installments of one- 29