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Marriott Corporation, 1976 Annual Report
Image 33
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Marriott International, Inc.. Marriott Corporation, 1976 Annual Report - Image 33. 1976. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 10, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/956/show/948.

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.. (1976). Marriott Corporation, 1976 Annual Report - Image 33. 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/956/show/948

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, 1976 Annual Report - Image 33, 1976, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed July 10, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/956/show/948.

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, 1976 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1976
Description Marriott Corporation Annual Report for the 52 weeks ending on July 30, 1976.
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 33
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_047_033.jpg
Transcript and development costs, including those related to the theme parks, are expensed as incurred. Construction Financing and Interest Capitalized: Interest cost is capitalized as part of construction costs or carrying costs of land purchased for future operations or resale to properly reflect the total costs of property. Interest is capitalized by applying the effective interest rate on the related borrowings to the balance of costs incurred. If all interest had been expensed when incurred, net income as reported would have been reduced by $4,375,000 in 1976 and $4,402,000 in 1975. See "DEBT" for description of accounting for construction financing. 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. Deferred Management Stock Compensation: Compensation for deferred stock bonus awards is recorded in the year in which the bonus is earned, adjusted for anticipated forfeitures, and is based on quoted market price at the date awarded. Computations of Earnings Per Share: Earnings per share of common stock are based on the weighted average number of shares outstanding during each year (adjusted for stock dividends and stock splits), which was 34,363,515 for 1976 and 33,084,134 for 1975. Distribution of shares reserved would not have a material effect on earnings per share. 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. At July 30, 1976, the partnership had total assets of $31,653,000 and total liabilities of $27,348,000. The Company has guaranteed a $5,000,000 bank loan due in 1978. The Company has a 49% interest in a limited partnership which is constructing a 1,214-room hotel in downtown Chicago. The hotel will be leased to the Company for 80 years including renewal options, with rentals based solely on profits. The Company has agreed to contribute approximately $4,000,000, net of construction period tax benefits, to the partnership as of the earlier of completion of the hotel or August, 1978. A commitment for permanent financing of $54,000,000 has been obtained, to be secured only by the property. The Company has a 45% equity interest in Sun Line Greece Special Shipping Company, Inc., the owner of the cruise ship M.S. Stella Solaris. At its fiscal year-end (December 31, 1975), Sun Line Greece had total assets of $22,698,000 and total liabilities of $19,015,000, including $11,921,000 of debt, and $4,000,000 advanced by 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 $3,108,000 and is being amortized over periods of up to 40 years. INCOME TAXES Reconciliation of the United States statutory tax rate of 48% and the Company's consolidated income tax rate follows: 1976 &?■ 1975 United States income tax rate 48.0% 48.0% State income taxes on U.S. pre-tax income, net of U.S. tax benefit 3.5 3.4 Other items, net 0.3 (0.5) Effective gross income tax rate 51.8 50.9 Investment tax credit — Theme Parks (6.3) Other (5.1) (7.7) Effective net income tax rate 40.4% 43.2% Deferred income tax provisions are attributable to: Excess of tax over book 1976 1975 deduction — Depreciation $ 7,522,000 $3,353,000 Interest 3,953,000 4,859,000 Other items, net 2,644,000 1,502,000 $14,119,000 $9,714,000 DEBT Maturities of Debt at July 30,1976: Fiscal Year Total Debt Interest rates 4.25% —10.25% 1978 $ 17,657,000 1979 18,209,000 1980 19,082,000 1981 17,983,000 to 1997 309,337,000 $382,268,000 The Company has debt of $127,400,000 as of July 30,1976 at interest rates which vary based on the prime lending rate or London Euro-dollar interbank rate. Summary of Pledged Assets: As of July 30,1976, property and equipment, at cost, excluding land and ship purchased for future operations or resale and construction in progress, totals $782,518,000, of which $360,936,000 (46%) is pledged or mortgaged. 31