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Marriott Corporation, 1974 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1974 Annual Report - Image 35. 1974. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. May 27, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/678/show/672.

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 35. 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/672

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 35, 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 27, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/678/show/672.

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 35
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_045_035.jpg
Transcript Convertible Subordinated Debt: 4lU% Convertible Subordinated Notes due 1992, convertible at $42.53 per share 5V2 % Convertible Subordinated Note due 1988, convertible at $32.20 per share 5% Convertible Subordinated Debentures due 1988, convertible at $32.20 per share $ 5,000,000 15,000,000 14,300,000 $34,300,000 Conversion prices are subject to anti-dilution provisions. The agreements have cash dividend restrictions, but at July 26, 1974, all retained earnings are unrestricted. Short Term Loans: The short term loans of $3,763,000 at July 26, 1974 are foreign overdraft accounts. During the year, short term bank loans, including U. S. borrowings for working capital purposes, averaged $13,120,000 (weighted average interest rate of 10%) with a maximum outstanding balance of $29,656,000. Compensating Balances: All compensating balance agreements are informal and do not legally restrict withdrawal of funds. Under certain bank agreements in effect at July 26, 1974, the Company maintains average compensating balances of $8,948,000 after adjustment for estimated average bank float. These informal agreements are equal to a percentage (5% to 20 %) of the amount of the bank line of credit or the amount borrowed under such bank lines. 6. LEASES: The Company has 480 noncancelable leases (primarily real estate and shopping center space) which have not been capitalized. Minimum annual rentals under such leases are: Financing Leases Other Fiscal Year (as defined by the SEC) Leases 1975 $ 9,583,000 $ 5,360,000 1976 9,695,000 3,993,000 1977 9,761,000 3,646,000 1978 9,733,000 3,362,000 1979 9,721,000 3,095,000 1980-1984 47,280,000 11,536,000 1985-1989 43,231,000 7,004,000 1990-1994 29,202,000 5,001,000 Thereafter 36,164,000 3,096,000 Total $204,370,000 $46,093,000 Minimum annual rentals on non-capitalized financing leases (as defined by the SEC) were $7,888,000 in 1974 and $4,745,000 in 1973. Certain leases require additional rentals based on sales. These additional rentals were $16,723,000 in 1974 and $14,234,000 in 1973, including $2,076,000 in 1974 and $1,760,000 in 1973 on non-capitalized financing leases. Most leases contain one or more renewal options, generally for five or ten year periods. If non-capitalized financing leases were capitalized, the present values of the minimum lease commitments would be $93,755,000 at July 26, 1974 and $53,557,000 at July 27, 1973. Present values are computed by dis counting net lease payments at the interest rate implicit at the time of entering into the lease. These rates ranged from 4.4% to 9.9% with a weighted average rate of 8.0%. If non-capitalized financing leases were capitalized and the related property was amortized on a straight- line basis and interest was accrued on the basis of the outstanding lease liability, net income would have been reduced $1,071,000 ($.03 per share) in 1974 and $557,000 ($.02 per share) in 1973. Included above is the lease of the Los Angeles Marriott Hotel which the Company sold for $32,000,000 and leased back in October 1973. The Company has an option to repurchase the hotel at any time prior to July 1993, at a purchase price of the higher of lessor's mortgage balance or net book value (as defined). 7. CAPITAL STOCK: 1,000,000 shares of preferred stock, without par value, are authorized. As of July 26, 1974, no preferred shares have been issued. 45,000,000 shares of common stock, with a par value of $1 per share, are authorized, of which 31,183,063 and 30,272,896 were issued and outstanding at July 26, 1974 and July 27, 1973, respectively. Total common stock shares reserved at July 26,1974: Conversions of convertible subordinated debt 1,027,502 1974 employee stock option plan . . 900,000 Deferred stock compensation programs 676,958 Employee qualified stock purchase plan 177,984 Exercise of warrant at $23.80 per share 12,607 Total shares reserved 2,795,051 In 1974, the Board .of Directors approved, subject to shareholders' approval, the 1974 Employee Stock Option Plan, under which 900,000 shares have been reserved. Under the plan, key employees will receive options to purchase stock at 100% of the fair market value on the date of grant and options are exercisable over ten years after a one year waiting period. Options totaling 634,000 shares were granted at $11.56 per share, subject to approval of the plan by shareholders. The Company has a number of deferred stock compensation programs. Contracts for 676,958 shares of common stock have been awarded of which 326,197 shares are fully vested at July 26, 1974. Under some programs, shares are issued after the period earned; under other programs, restricted shares are issued prior to the period earned. As of July 26, 1974, the amounts payable in the future in stock and the unamortized compensation for shares already issued are: Stock payable in future . . . Unamortized compensation Net $ 3,465,000 (574,000) .$ 2,891,000 The purchase price for the shares reserved under the qualified stock purchase plan is the market value at January 2, 1974 ($18.41 per share, adjusted for the 1974 stock dividend) or 100 % of the market value at the purchase date (January 31, 1975), whichever is less 33