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Marriott Corporation, 1976 Annual Report
Image 34
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Marriott International, Inc.. Marriott Corporation, 1976 Annual Report - Image 34. 1976. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 6, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/956/show/949.

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 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/956/show/949

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 34, 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 6, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/956/show/949.

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 34
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_047_034.jpg
Transcript 32 Construction Financing and Revolving Loan Agreements: The Company uses revolving loan commitments, short term loans and commercial paper for interim financing, primarily for construction. Such financing is classified in the consolidated balance sheet as noncurrent indebtedness to the extent that the loans and commercial paper mature beyond the permanent loan take-out or to the extent that the Company has funds available under its revolving loan agreements maturing beyond one year. The above maturity table reflects the maturities of such financing on the basis of the permanent loan payment schedule or the maturity schedule of the revolving credit agreements discussed below. As of July 30, 1976, the Company has permanent mortgage loan commitments of $21,300,000 and has $34,000,000 remaining funds available under its aggregate of $142,000,000 revolving loan commitments discussed below. In addition, the Company has unused bank credit lines aggregating $19,000,000. Interim construction financing in the consolidated balance sheet includes amounts borrowed on projects where the Company has obtained permanent mortgage loan commitments. Interim construction financing averaged $12,000,000 during 1976 and $26,000,000 during 1975 (weighted average interest rates of 8% and 11%, respectively) with a maximum loan balance of $16,000,000 in fiscal 1976 and $38,800,000 in fiscal 1975. As of July 30, 1976, the Company has unsecured revolving loan agreements of $12,000,000 which mature on December 31, 1978, and bear interest based on the prime rate. An aggregate of $6,000,000 has been borrowed against these loan agreements and is included in interim construction financing. The Company also has commitments of $130,- 000,000 under revolving credit agreements which mature through fiscal 1985. These agreements bear interest based on the prime rate or the London Euro-dollar interbank rate. At July 30, 1976, an aggregate of $102,000,000 in the form of drawdowns, certain construction accruals and other short term debt had been borrowed against these revolving credit agreements and is included in mortgage notes payable, interim construction financing and unsecured notes payable (including $28,000,000 of commercial paper). The average effective rate on these borrowings was 7% at July 30,1976. Borrowings against all revolving loan agreements averaged $91,500,000 during 1976 and $80,300,000 during 1975 (weighted average interest rates of 8% and 10%, respectively) with a maximum balance of $106,600,000 in 1976 and $118,300,000 in 1975. The revolving loan agreements require the Company to meet certain requirements including, among other things, the maintaining of minimum working capital, net worth, and a debt-to-equity ratio (as defined). A commitment fee of up to a maximum of one half of one percent per year is payable on the unused portion. Short Term Loans: The short term loans of $2,989,000 at July 30, 1976 and $2,752,000 at July 25, 1975 are foreign overdraft accounts. Short term bank loans, including U.S. borrowings for working capital purposes, averaged $4,500,000 during 1976 and $3,400,000 during 1975, at weighted average interest rates of 8.5% and 9.5%, respectively. The maximum outstanding balance was $13,000,000 during 1976 and $12,800,000 during 1975. Compensating Balances: All compensating balance agreements are informal and do not legally restrict withdrawal of funds. Under certain bank agreements in effect at July 30, 1976, the Company maintains average compensating balances of $6,400,000 after adjustment for an estimated bank float of $6,300,000. The balances maintained are equal to a percentage (10% to 20%) of the amounts available or borrowed. Convertible Subordinated Debt: 4-1/4% Convertible Subordinated Notes due 1992, convertible at $39.36 per share 5-1/2% Convertible Subordinated Note due 1988, convertible at $29.97 per share 5% Convertible Subordinated Debentures due 1988, convertible at $30.64 per share 11,345,000 $31,340,000 Conversion prices are subject to anti-dilution provisions. The agreements have cash dividend restrictions, but at July 30, 1976, all retained earnings are unrestricted. LEASES The Company has 508 non-cancelable leases (primarily real estate and shopping center space) which have not been capitalized. Minimum future rentals under non-cancelable leases are as follows: Financing Leases $ 4,995,000 15,000,000 Fiscal Year (as defined by the SEC) Other Leases 1977 $ 10,262,000 $ 9,155,000 1978 10,266,000 8,674,000 1979 10,254,000 7,723,000 1980 10,197,000 7,416,000 1981 10,138,000 6,914,000 1982-1986 50,267,000 28,759,000 1987-1991 44,544,000 12,320,000 1992-1996 28,037,000 8,644,000 Thereafter 24,597,000 9,055,000 $198,562,000 $98,660,000 Minimum annual rentals on non-capitalized financing leases were $9,691,000 in 1976 and were $8,730,000 in 1975. Certain leases require additional rentals based on sales or profits (as defined). Additional rentals based on profits (as defined) were $6,239,000 in 1976 and $5,822,000 in 1975