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Marriott Corporation, 1976 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1976 Annual Report - Image 35. 1976. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. August 11, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/956/show/950.

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 35. 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/950

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 35, 1976, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed August 11, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/956/show/950.

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 35
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_047_035.jpg
Transcript and based on sales were $7,637,000 in 1976 and $6,278,000 in 1975, including $1,547,000 in 1976 and $1,268,000 in 1975 on non-capitalized financing leases. Most leases contain one or more renewal options, generally for five or ten year periods. If non-capitalized financing leases were capitalized, the present values of the minimum lease commitments would be $93,011,000 at July 30, 1976 and $91,872,000 at July 25, 1975. Present values are computed by discounting net lease payments at the interest rate implicit at the time of entering into the lease. These rates ranged from 4.4% to 9.9%, with a weighted average rate of 8.3%. If non-capitalized financing leases were capitalized and related property was amortized on a straight-line basis and interest was accrued on the basis of the outstanding lease liability, net income would have been reduced $978,000 in 1976 and $1,016,000 in 1975. On September 5, 1975, the Company sold and leased back the Lincolnshire Hotel with no gain or loss recognized. Net proceeds were $7,282,000 and the purchaser assumed the Company's mortgage of $17,000,000. The initial lease is for ten years with renewal options for an additional sixty years. Under certain conditions the lease may be canceled and converted to a management agreement. LITIGATIONS AND INVESTIGATIONS Legal proceedings are pending in the Georgia courts regarding the Company's right to serve Eastern Air Lines from Marriott's new flight kitchen in Atlanta. The Company and a competitor which claims it has the exclusive right to serve Eastern, each have filed claims against the other alleging antitrust violations. The Company also is involved in various other cases and investigations by government agencies. It is not possible at this time to determine the ultimate outcome of these matters, but based on facts now available, it is management's opinion that the ultimate resolution of these matters will not have a material adverse effect upon the financial position of the Company. CAPITAL STOCK 1,000,000 shares of preferred stock, without par value, are authorized. As of July 30, 1976, no preferred shares have been issued. 45,000,000 shares of common stock, with a par value of $1 per share, are authorized, of which 35,567,027 and 32,506,837 were issued and outstanding at July 30, 1976 and July 25, 1975, respectively. Total common stock shares reserved at July 30,1976: Conversions of convertible subordinated debt 997,672 Employee stock option plan 922,090 Deferred stock compensation programs 782,202 Employee qualified stock purchase plan 494,697 Restricted stock plan for key employees 100,000 Exercise of warrant, at $22.65 per share 13,245 Total shares reserved 3,309,906 In September 1974, the Company adopted an employee stock option plan under which options to purchase a maximum of 945,562 shares of common stock may be granted to key employees 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 for the fiscal years ended July 30, 1976 and July 25, 1975 is summarized below. Shares and option prices have been adjusted for stock dividends. Shares Under Option Number of Shares Option Price Per Share Balance, July 26, Granted Canceled Balance, July 25, Granted Exercised Canceled Balance, July 30, 1974 1975 1976 681,871 (54,317) 627,554 178,380 (23,472) (60,823) 721,639 $11.00-12.62 11.00 11.00-12.62 10.37-17.75 11.00 10.37-14.39 10.37-17.75 At July 30,1976, options for 125,068 shares were exercisable and 200,451 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 at January 2, 1976 ($15.98 per share, adjusted for the 1976 stock dividend) or 100% of the market value at the purchase date (January 31,1977), whichever is less. The Company has a number of deferred stock compensation programs. Contracts for 782,202 shares of common stock have been awarded of which 354,771 shares are fully vested at July 30, 1976. Under some programs, shares are issued after the period earned; under other programs, restricted shares are issued prior to the period earned. As of July 30, 1976, the amounts payable in the future in stock and the unamortized compensation for restricted shares already issued are: Stock payable in future $4,320,000 Unamortized compensation (368,000) Net $3,952,000 In September 1975 the Company adopted the Restricted Stock Plan for Key Employees under which the Company may issue restricted shares of its common stock to key executives aggregating not in excess of 25,000 shares each fiscal year beginning in 1976. No contracts have been awarded at July 30,1976. 33