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Marriott Corporation, 1978 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1978 Annual Report - Image 34. 1978. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. December 11, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/828/show/821.

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 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/828/show/821

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 34, 1978, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed December 11, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/828/show/821.

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 34
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_049_034.jpg
Transcript Accounting Standards No. 13. The accompanying financial statements have been restated to reflect the change. Minimum future rentals under non-cancelable leases (primarily real estate and shopping center space) are as follows: 12 Months Ended July, 1979 1980 1981 1982 1983 Thereafter Total minimum lease payments Amounts representing interest Present value of net minimum lease payments Current portion of capital lease obligations Long term capital lease obligations Rent expense consists of: Minimum rentals on operating leases Additional rentals based on sales —operating leases —capital leases Rentals on operating leases based solely on hotel profits Capital Leases $ 2,803,000 2,803,000 2,798,000 2,793,000 2,737,000 29,569,000 43,503,000 (20,431,000) 23,072,000 (885,000) $22,187,000 1978 Operating Leases $ 15,542,000 15,438,000 15,042,000 14,700,000 14,812,000 141,165,000 $216,699,000 1977 $16,031,000 $15,411,000 9,766,000 454,000 7,723,000 457,000 $26,251,000 $23,591,000 $13,894,000 $ 8,452,000 Most leases contain one or more renewal options, generally for five- or ten-year periods. On June 30,1978, the Company sold five hotels to The Equitable Life Assurance Society of the United States. The Equitable assum ed a mortgage of $31,811,000 and existing mortgages of $32,018,000 were retired, resulting in net proceeds of $27,591,000 after selling costs. The Company will continue to operate the five hotels under a long term agreement. In accordance with Statement of Financial Accounting Standards No. 13, the excess of the purchase price over the carrying costs of these properties (approximately $6 million before income taxes) is being amortized over the initial terms of the agreement (approximately 25 years). The long term agreement with The Equitable may be renewed for an additional 50 years. Payments to The Equitable are based solely on hotel profits. CAPITAL STOCK 1,000,000 shares of preferred stock, without par value, are authorized. As of July 28,1978, no preferred shares have been issued. 60,000,000 shares of common stock, with a par value of $1 per share, are authorized, of which 36,855,351 and 36,668,489 were issued and outstanding at July 28,1978 and July 29,1977, respectively. Total common stock shares reserved at July 28,1978: Employee stock option plan Conversions of convertible subordinated debt, at prices ranging from $29.26 to $38.44 per share Deferred stock compensation program (401,742 shares fully vested) Employee qualified stock purchase plan Restricted stock plan for key employees Exercise of warrant, at $22.10 per share Total shares reserved 1,947,139 941,780 915,567 161,587 89,500 13,576 4,069,149 Options to purchase shares of common stock may be granted to key employees, under the 1974 and 1976 employee stock option plans, at not less than 100% of the fair market value on the date of grant. All options expire ten years after the date of grant and are exercisable in cumulative installments of one-fourth each year after a one-year waiting period. Activity under the plan is summarized below. Shares Under Option Balance, July 30,1976 Granted Exercised Canceled Balance, July 29,1977 Granted Exercised Canceled Balance, July 28,1978 Number of Shares 739,680 296,911 (10,622) (104,626) 921,343 363,650 (12,380) (100,806) 1,171,807 Option Price Per Share $10.11-17.32 9.69-12.44 10.11-10.74 10.11-14.04 9.69-17.32 9.31-11.44 10.11-10.74 9.69-14.04 9.31-17.32 At July 28,1978, options for 458,465 shares were exercisable and 775,332 shares were available for granting of additional options. No accounting is made for options until they are exercised, at which time the proceeds from the options are credited to common stock and capital surplus. The purchase price for the shares reserved under the employee qualified stock purchase plan is the market value on January 3, 1978 ($11.44 per share) or the purchase date (January 31,1979), whichever is less. REPLACEMENT COST (Unaudited) In recent years inflation has had a material impact on the Company's operating expenses and cost of replacing productive capacity. However, the Company has generally been able to offset the impact of inflation by improved design of facilities and equipment, price increases and emphasis on improved cost and expense controls. The Company's annual report on Form 10-K contains unaudited information with respect to estimated replacement cost of productive capacity as of July 28,1978 and July 29,1977 and the approximate effect which replacement cost would have had on the computation of depreciation expense for the years then ended. Replacement cost of inventories would be essentially the same as historical cost. 32