Keyword
in
Collection
Date
to
Marriott Corporation, 1979 Annual Report
Image 33
Citation
MLA
APA
Chicago/Turabian
Marriott International, Inc.. Marriott Corporation, 1979 Annual Report - Image 33. 1979. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 4, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/637/show/631.

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 33. 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/631

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 33, 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 4, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/637/show/631.

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 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 33
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_051_033.jpg
Transcript The total cost of shares purchased pursuant to the offer, including estimated fees and expenses, will approximate $178,750,000. The stock repurchase will be financed through the sale of six hotels and the incurrence of additional debt. The Equitable Life Assurance Society of the United States has approved, subject to the execution of definitive agreements, the purchase of six hotels (three existing and three under development) from the Company. Net proceeds to the Company from the sale will approximate $159,000,000 after payment of related mortgage indebtedness and before giving effect to the development costs of the three hotels under development. Approximately $60,000,000 will be received in 1980 and the remainder through 1982. The Company will continue to operate these hotels under long-term lease agreements with rentals based solely on future profits. In addition, on February 29,1980, the Company signed a term loan agreement with The Equitable for $146,000,000 maturing between 1986 and 1988 and bearing interest at 137's%. The Company is required to make prepayments of the loan out of the entire proceeds of the hotel sale discussed above. The Company will borrow the balance of approximately $32,750,000 required to consummate the Offer pursuant to lines of credit from a group of major commercial banks. The Company has obtained letters of commitment from these banks under which existing Revolving Credit Agreements may be amended or superseded to permit the stock repurchase and to increase the aggregate available lines of credit up to $554,000,000 from the $129,000,000 which existed at December 28,1979. These amended lines of credit substantially mature from 1984 to 1989. The Company anticipates that certain covenants of its 8%% Senior Notes due 1983-1997 of which $40,000,000 principal amount remains outstanding will be amended to permit the stock repurchase. If an amendment cannot be obtained, the Senior Notes will be refinanced through borrowings under the Revolving Credit facilities. The pro forma effects of the stock repurchase, assuming the entire transaction occurred on December 30,1978, and excluding the effects of the anticipated sale of six hotels to The Equitable, are summarized below (dollars in thousands except per share amounts). At and for the Fiscal Year- Ended December 28,1979 Balance Sheet Items Working capital Senior debt and capital lease obligations Convertible subordinated debt Deferred income taxes and other liabilities Shareholders' equity Total capital Income Statement Items Sales Cost of sales and other expenses Net interest expense Income before income taxes Provision for income taxes Net income Earnings per share —primary —fully diluted Shares outstanding —weighted average —at fiscal year-end Pro Forma Purchase of 7,500,000 As Reported Shares (unaudited) $ (10,777) $ (10,777) 365,279 26,918 86,166 413,503 $ 555,324 26,918 86,166 223,458 891,866 $ 891,866 $ 1,509,957 1,358,972 27,840 123,145 52,145 $ 71,000 $1.96 $1.95 34,628,818 32,098,333 $ 1,509,957 1,356,802 54,965 98,190 39,760 $ 58,430 $2.04 $2.02 27,128,818 24,598,333 Auditors' Report To the Shareholders of Marriott Corporation: We have examined the consolidated balance sheet of MARRIOTT CORPORATION (a Delaware corporation) and Subsidiaries as of December 28,1979 and December 29,1978, and the related statements of consolidated income, shareholders' equity and changes in financial position for the fiscal years then ended. Our examinations were 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 consolidated financial statements referred to above present fairly the financial position of Marriott Corporation and Subsidiaries as of December 28,1979 and December 29,1978, and the results of their operations and the changes in their financial position for the fiscal years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. ARTHUR ANDERSEN & CO. Washington, D.C, January 30, 1980 (the date with respect to the Subsequent Event discussed in the Notes to Consolidated Financial Statements is February 29,1980). Management Report Management is responsible for the integrity and objectivity of the consolidated financial statements and other financial information presented in this Annual Report. In meeting this responsibility, the Company maintains a highly developed system of internal controls, policies and procedures including an internal auditing function that continually evaluates the adequacy and effectiveness of our control system. We believe this system provides reasonable assurance that transactions are properly authorized and recorded to adequately safeguard the Company's assets and to permit preparation of the consolidated financial statements in accordance with generally accepted accounting principles. The consolidated financial statements have been examined by Arthur Andersen & Co., independent public accountants. The auditors' report expresses an informed judgment as to whether management's consolidated financial statements, considered in their entirety, present fairly the Company's financial position and operating results in conformity with generally accepted accounting principles. The Board of Directors pursues its responsibility for the consolidated financial statements through its Audit Committee, composed of three directors not otherwise employed by the Company, headed by the Vice Chairman. The Committee meets a minimum of three times during the year with the independent public accountants, representatives of management and the internal auditors to review the scope and results of the internal and external audits, the accounting principles applied in financial reporting and financial and operational controls. The independent public accountants and internal auditors have full and free access to the Audit Committee with or without the presence of management. MARRIOTT CORPORATION Washington, D.C, January 30,1980. 31