BUSINESS SEGMENT INFORMATION
Summarized on page 24 are sales and operating profit for the
five fiscal years ended July 28,1978 by business segment. Net
assets employed, identifiable assets, capital expenditures and
acquisitions, and depreciation and amortization for each business
segment for 1978 are as follows:
(Dollars in Thousands)
Assets Identifiable Expenditures Depreciation
Employed* Assets & Acquisitions & Amortization
Cruise Ships and
*Net assets employed represent identifiable assets less identifiable current
QUARTERLY FINANCIAL RESULTS (Unaudited)
The following is a summary of selected quarterly financial data
for the years ended July 28,1978 and July 29,1977, as restated to
give effect to the retroactive capitalization of leases as required by
Statement of Financial Accounting Standards No. 13.
(Dollars in Thousands, Except Per Share Amounts)
$1,176,541 $79,780 $46,123
Earnings Per Share
$ .35 $ .34
*The sum of the earnings per share for the four quarters is different from
the annual earnings per share as a result of computing the quarterly and
annual amounts on the weighted average number of shares in the respective periods.
To the Shareholders of Marriott Corporation:
We have examined the consolidated balance sheet of
MARRIOTT CORPORATION (a Delaware corporation)
and Subsidiaries as of July 28,1978, and July 29,1977, and
the related statements of consolidated income, shareholders' investment and changes in financial position for the
fiscal years then ended. Our examination was made in
accordance with generally accepted auditing standards and,
accordingly, included such tests of the accounting records
and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the accompanying consolidated financial
statements present fairly the financial position of Marriott
Corporation and Subsidiaries as of July 28,1978, and
July 29,1977, and the results of their operations and
changes in their financial position for the fiscal years then
ended, in conformity with generally accepted accounting
principles applied on a consistent basis after giving retroactive effect to the change (with which we concur) in the
method of accounting for leases as required by Statement of
Financial Accounting Standards No. 13 and explained in
the Notes to Consolidated Financial Statements.
ARTHUR ANDERSEN & CO.
The consolidated financial statements were prepared
by management, which is responsible for their integrity
and objectivity. In meeting this responsibility, the Company
maintains systems of internal controls, policies and procedures to ensure that its accounting, administrative procedures and reporting practices are of the highest standards.
The Company also maintains an internal auditing function
which constantly evaluates the adequacy and effectiveness
of such internal controls, policies and procedures.
The Board of Directors pursues its responsibility for the
consolidated financial statements through its Audit Committee, composed of three directors not otherwise
employed by the Company, headed by the Vice Chairman.
The Committee meets a minimum of three times a year
with the independent public accountants, representatives
of management and the internal auditors. It reviews the
scope and results of the internal and external audits, the
accounting principles applied in financial reporting and
financial and operational controls. The independent public
accountants have full and free access to the Audit Committee with or without the presence of management.