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Marriott Corporation, 1974 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1974 Annual Report - Image 34. 1974. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. May 25, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/678/show/671.

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 34. 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/671

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 34, 1974, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed May 25, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/678/show/671.

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 34
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_045_034.jpg
Transcript Boy units), A-M Food Services, Inc. (operator of 11 Farrell's units) and three other companies for 50,000 shares of common stock and $5,159,000. One acquisition was accounted for as a pooling of interests and four acquisitions were accounted for as purchases. The purchase price of the four acquisitions accounted for as purchases was $849,000 in excess of net assets of businesses acquired. The companies had combined sales of $10,236,000 and net income of $318,000 reflected in the statement of income. Results of their operations for years prior to 1974 are not significant. 3. INVESTMENTS: The Company has a 49% equity interest (with 50% voting rights) in Duman Invesfments, Inc., the landlord of the New Orleans Marriott Hotel, which is leased to the Company for 55 years including renewal options, with rentals based on profits. At July 26, 1974, Duman had total assets of $31,745,000 and total liabilities of $28,243,000, of which $1,108,000 are current liabilities, including $400,000 advanced by the Company. The Company has guaranteed a $5,000,000 bank loan due in 1977 for Duman. The Company has a 45% equity interest in Sun Line Greece Special Shipping Company, Inc., the owner of a cruise ship (M.S. Stella Solaris) which was chartered to the Company until March 31, 1974. At its fiscal year end (March 31, 1974), Sun Line had total assets of $22,340,000 and total liabilities of $17,532,000, including $10,663,000 of debt and $4,000,000 advanced by the stockholders, of which $1,800,000 was the Company's share. The Company has guaranteed 45% of the debt. The excess of the Company's investment over the underlying net assets of minority owned affiliates is $3,387,000 and is being amortized over periods up to 40 years. 4. INCOME TAXES: The provision for United States and foreign income taxes for 1974 was less than the statutory rate of 48.0% due to the following: Amount Rate 5. DEBT: Maturities of Debt at July 26, 1974: Computed tax expense $20,218,000 48.0% Increases (decreases) in taxes resulting from: Investment tax credit .... (2,050,000) (4.9) Foreign income subject to foreign taxes and not ex pected to be subject to U.S. tax in foreseeable future (722,000) (1.7) State and local income taxes, net of U.S. tax benefit 1,254,000 3.0 Other items . ."^t (1,325,000) (3.1) Total tax expense 517,375,000 41.3% Deferred income tax provision for 1974 consists of: Excess of tax over book deduction— Depreciation $2,838,000 Interest 2,458,000 Other items, net 1,446,000 $6,742,000 Fiscal Year Mortgage Notes Unsecured Notes And Interim And Convertible Construction Subordinated Financing Debt Total iterest Rates 1976 1977 1978 1979 to 1997 4.5%-10.0% $ 8,903,000 8,695,000 8,708,000 7,546,000 127,831,000 $161,683,000 4.25%-12.0% $ 9,809,000 6,052,000 18,989,000 19,644,000 69,906,000 $124,400,000 $ 18,712,000 14,747,000 27,697,000 27,190,000 197,737,000 $286,083,000 32 The Company has debt of $97,428,000 and $105,623,000 as of July 26, 1974 and July 27, 1973, respectively, at interest rates which vary based on the prime lending rate. Summary of Pledging of Assets: As of July 26, 1974, property and equipment, at cost excluding land purchased for future operations or. resale, totals $544,090,000, of which $237,171,000 is pledged. Construction Financing: As of July 26, 1974, the Company has expended $60,164,000 on major construction projects which will be completed over the next two years at a total estimated cost of $157,612,000. The Company has obtained permanent mortgage loan commitments of $45,300,000 on projects aggregating $66,356,000. In addition, the Company has $54,000,000 available under revolving loan commitments. During construction, the Company uses interim financing consisting of revolving loan commitments and short term loans, including commercial paper. Such financing is classified in the consolidated balance sheet as non-current indebtedness to the extent that the loans and/or commitments mature beyond the permanent mortgage take-out. In 1974, this interim financing averaged $19,716,000 (weighted average interest rate of 9%) with a maximum loan balance of $39,417,000. The above maturity table reflects the maturities of construction financing on the basis of the permanent loan payment schedule. At July 26, 1974, the Company's bank credit lines aggregated $80,000,000 under which $17,- 000,000 has been borrowed. Revolving Loan Agreements: As of July 26, 1974, the Company has commitments of $100,000,000 under five revolving loan agreements against which $46,000,000 has been borrowed and is included in unsecured notes payable. These agreements revolve through June 30, 1977, at which time they convert to term loans. They bear interest based on the prime rate or the London Euro-dollar Interbank rate. The rate on these borrowings at July 26, 1974 was 12%, the existing prime rate. These agreements require the Company to maintain minimum working capital, net worth, a debt to equity ratio (as defined) and the payment of a commitment fee of up to a maximum of '/2 of 1 % per year on the unused portion of these commitments.