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Marriott Corporation, 1974 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1974 Annual Report - Image 33. 1974. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 16, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/678/show/670.

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.. (1974). Marriott Corporation, 1974 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/678/show/670

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, 1974 Annual Report - Image 33, 1974, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed July 16, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/678/show/670.

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, 1974 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1974
Description Marriott Corporation Annual Report for the 52 weeks ending on July 26, 1974.
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_045_033.jpg
Transcript Notes to Consolidated Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation: The consolidated financial statements include 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. The financial statements have been reclassified to be consistent with the captions used in 1974. The 1973 balance sheet amounts for leasehold interest under lease purchase obligations have been reclassified to the respective property categories and the related obligations have been reclassified to mortgage notes payable. Foreign Operations: The consolidated financial statements include net assets of foreign subsidiaries of $16,680,000 at July 26, 1974 and $12,806,000 at July 27, 1973. Foreign sales and net income, as a percent of consolidated sales and net income after tax, were 11% and 3% in 1974 and were 10% and 11% in 1973, respectively. Financial statements of foreign subsidiaries have been translated into U.S. dollars as follows: current assets, long-term receivables and all liabilities at year end rates of exchange; property, equipment and depreciation reserves and expense at the rates of exchange in effect when the respective assets were acquired; and sales and expenses (except depreciation) at the average rates in effect during the year. Exchange adjustments resulting from the translation of construction loans are credited or charged to the related property account; other adjustments are charged or credited to income and are not significant. Condominium Sales: Sales of condominium units are recorded when both parties are bound by terms of sales contracts and all conditions precedent to closing have been performed, including receipt of appropriate down payments. The Company had condominium sales of $5,469,000 and $5,036,000 in 1974 and 1973, respectively. Land Purchased for Future Operations or Resale: In connection with the development of properties, the Company often acquires land to be used for future operations and/or for eventual resale. Carrying costs are capitalized to the extent estimated realizable value exceeds land costs and accumulated carrying costs. Construction Financing and Capitalized Interest: Interest of $5,144,000 in 1974 and $2,802,000 in 1973 was capitalized as part of construction cost or carrying cost of land purchased for future operations or resale. See Note 5 for description of accounting for construction financing. Income Taxes: United States and foreign income taxes are based on reported income. Deferred income taxes are recorded for timing differences between book and taxable income, principally depreciation, interest during construction, deferred stock compensation and lease costs. Investment tax credits are on the "flow-through" method and are recognized in the year the related property and equipment are placed in service. Provision for United States taxes has not been made on unremitted earnings of foreign subsidiaries as these earnings are considered to be permanently invested. The Company's equity in unremitted earnings of foreign subsidiaries, which are considered to be permanently invested, aggregated $6,628,000 at July 26, 1974. If this amount were distributed, United States taxes would be reduced by foreign tax credits. Deferred Management Stock Compensation: Compensation for deferred stock bonus awards is recorded in the year in which the bonus is earned, adjusted for anticipated forfeitures, and is based on quoted market price at the date awarded. outation of Earnings Per Share: Earnings per share of common stock are based on the weighted average number of shares outstanding during each year, which was 31,090,751 for 1974 and 30,917,633 for 1973 (adjusted for 1974 2'/2% stock dividend). Conversion of subordinated debt and distribution of shares reserved would not have a material effect on earnings per share. Cost in Excess of Net Assets of Businesses Acquired: Of the cost in excess of net assets of businesses acquired, $13,595,000 relates to companies acquired prior to October 31, 1970 and is not being amortized. The remaining $3,072,000 is being amortized over periods up to 40 years. Deferred Pre-Opening Costs and Other Deferred Costs: Costs incurred prior to the opening of certain operations are deferred and amortized, following dates of opening, as follows: hotels—three years; theme parks —five years; and other major operations—one year. Such costs for smaller operations are expensed as incurred. Deferred financing costs are amortized over the term of the related loan. Other deferred charges are amortized over periods of up to five years. Costs of developing data processing systems and research and development costs are expensed as incurred. Depreciation and Amortization: Depreciation and amortization are calculated on the straight-line method for financial statement purposes based on the following lives: Buildings and improvements 25 to 45 Years Leasehold improvements Shorter of life of lease or asset Furniture and equipment 2 to 20 Years Cruise ships 20 Years Maintenance and repairs are expensed. Replacements and improvements, including costs of converting units, are capitalized. Costs of replaced property less accumulated depreciation and salvage are charged or credited to income. Royalty and Franchise Fees: Royalty fees are accrued on a monthly basis. Initial franchise fees are not significant. 2. ACQUISITIONS: During 1974, the Company acquired either the principal assets or stock of the Manners Restaurants Division of Consolidated Foods Corporation (operator of 38 Big