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Marriott Corporation, 1978 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1978 Annual Report - Image 32. 1978. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. September 22, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/828/show/819.

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.. (1978). Marriott Corporation, 1978 Annual Report - Image 32. 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/828/show/819

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, 1978 Annual Report - Image 32, 1978, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed September 22, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/828/show/819.

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, 1978 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1978
Description Marriott Corporation Annual Report for the year ending on July 31, 1978.
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 32
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_049_032.jpg
Transcript . Notes to Consolidated Financial Statements 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. Foreign Operations: The consolidated financial statements include net assets of foreign subsidiaries of $42,979,000 at July 28, 1978 and $39,305,000 at July 29,1977. Foreign sales and net income after interest, intercompany charges and foreign tax, as a percent of consolidated sales and net income were 8% and 15% in 1978 and 8% and 13% in 1977, respectively. Financial statements of foreign subsidiaries are translated into U.S. dollars in accordance with the provisions of Statement of Financial Accounting Standards No. 8. Translation losses were $538,000 in 1978 and $594,000 in 1977. Theme Parks: The two theme parks operate primarily during the summer season. Operating costs incurred during the off-season are deferred (included in prepaid expenses). These deferred costs and annual depreciation are charged to expense during the operating season based on budgeted sales. Interest and general and administrative costs are expensed as incurred. Property and Equipment: Depreciation and amortization are calculated on the straight- line method for financial statement purposes based on the following lives: Buildings and improvements- Leasehold improvements Furniture and equipment Cruise Ships 25 to 45 years shorter of life of lease or asset 2 to 15 years 20 years Maintenance and repairs are expensed. New unit costs include interest, rent charges and real estate taxes incurred during construction. Replacements and improvements, including most costs of converting units, are capitalized. Upon sale or retirement of property and equipment (excluding normal sales or retirements of theme park rides and equipment), the costs less accumulated depreciation and salvage are charged or credited to income. Theme park rides and equipment are depreciated under the composite method and no gain or loss is recognized on normal sales or retirements. Cost in Excess of Net Assets of Businesses Acquired: Of the cost in excess of net assets of businesses acquired, $12,936,000 relates to acquisitions prior to October 31,1970 (at which time amortization became mandatory) and is not being amortized because in the opinion of management, it has continuing value. The remaining $6,415,000 at July 28,1978 is being amortized over periods of up to 40 years. Pre-Opening Costs: Costs incurred prior to opening are deferred and amortized over three years for hotels, five years for theme parks and one year for other major operations. Similar costs for all other operations are expensed as incurred. Capitalized Interest: Interest cost is capitalized as part of construction costs or carrying costs of land to properly reflect the total costs of property. Interest is capitalized by applying the effective interest rate on the related borrowings to costs incurred. If all interest had been expensed when incurred, net income as reported would have been increased by $858,000 ($.02 per share) in 1978 and $213,000 ($.01 per share) in 1977. Income Taxes: United States and foreign income taxes are based on reported income. Deferred income taxes are provided for timing differences between book and taxable income, principally depreciation, interest and stock compensation. Investment tax credits are accounted for using the "flow-through" method. Provision for United States taxes has not been made on unremitted earnings of foreign subsidiaries because management considers these earnings to be permanently invested. Total unremitted earnings were $13,445,000 as of July 28, 1978. Computations of Earnings Per Share: Earnings per share assuming no dilution are based on the weighted average number of shares outstanding during each year, which was 36,667,663 for 1978 and 36,568,300 for 1977. Earnings per share assuming full dilution assumes the conversion of convertible debentures and includes the dilutive effect of employee stock options and deferred stock compensation. INVESTMENTS The Company has a 49% interest, with an option to purchase the remaining 51% after 1985, in a limited partnership which owns the New Orleans Marriott Hotel. The hotel is leased to the Company for 55 years including renewal options, with rentals based solely on profits. The partnership is constructing a 430-room addition and, at various times during the year, the Company advanced the partnership funds for this addition. The maximum advanced at any time during the year was $14,316,000. The Company also has guaranteed to complete the project at the estimated cost of $20,500,000 and to obtain or provide the permanent mortgage financing. The partnership has a permanent mortgage commitment of $46,000,000, secured only by the property to finance this addition and refinance the existing mortgage. At July 28,1978, $15,766,000 has been spent on this project. At July 28,1978, the partnership has total assets of $48,412,000 and total liabilities of $39,752,000. The Company has a 49% interest in a limited partnership which owns the 1,214-room Downtown Chicago Marriott Hotel. The hotel is leased to the Company for 80 years including renewal options, with rentals based solely on profits. At July 28,1978, the partnership has total assets of $78,059,000 and total liabilities of 30