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Marriott-Hot Shoppes, Inc., 1965 Annual Report
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Marriott International, Inc.; Marriott Hot Shoppes. Marriott-Hot Shoppes, Inc., 1965 Annual Report - Image 12. 1965. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. August 14, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/981/show/968.

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 Hot Shoppes. (1965). Marriott-Hot Shoppes, Inc., 1965 Annual Report - Image 12. 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/981/show/968

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 Hot Shoppes, Marriott-Hot Shoppes, Inc., 1965 Annual Report - Image 12, 1965, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed August 14, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/981/show/968.

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-Hot Shoppes, Inc., 1965 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
  • Marriott Hot Shoppes
Publisher Marriott International, Inc.; Marriott Hot Shoppes
Date 1965
Description Marriott-Hot Shoppes, Inc. Annual Report for the fiscal year ending on July 25, 1965.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Marriott International, Inc.
  • Marriott Hot Shoppes
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 12
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_036_012.jpg
Transcript CONSOLIDATED FINANCIAL CONDITION Marriott-Hot Shoppes, Inc. and Subsidiaries July 25, 1365 and July 26, 1964 CONSOLIDATED INCOME AND EARNED SURPLUS Marriott-Hot Shoppes, Inc. and Subsidiaries for the 52 weeks ended July 25, 1965 and July 26, 1964 ASSETS LIABILITIES AND STOCKHOLDERS1 INVESTMENT CURRENT ASSETS Cash Short-term investments, at cost Reimbursable construction costs under sale- leasebackand landlord agreements Accounts receivable Inventory, at lower of average cost or market Food and sundry items Operating supplies Prepaid expenses Total current assets FIXED ASSETS, at cost Land and land improvements Buildings and improvements Leasehold improvements Furniture and equipment Automotive equipment Construction in progress Depreciation and amortization Total fixed assets Leasehold interest in real estate at discounted amount of future rent (see contra) (Note 1) OTHER ASSETS Cash surrender value of life insurance ($710,000 face amount) Deferred charges, etc. Total other assets TOTAL ASSETS 1965 1964 $12,056,000 $ 2,406,588 5,584,163 9,500,836 3,319,065 2,529,767 1,107,249 315,945 $ 1,647,521 10,868,929 672,659 2,628,951 2,016,641 968,293 654,778 $24,763,613 $19,457,772 $ 2,721,070 2,599,951 8,570,593 12,234,174 1,847,479 3,092,956 $31,066,223 (11,946,108) $ 3,140,237 2,226,505 7,049,677 10,747,644 1,662,334 1,514,766 $26,341,163 (10,655,569) $19,120,115 $15,685,594 284,512 $ 474,985 262,981 121,115 $ 759,497 $ 384,096 $44,643,225 $35,527,462 CURRENT LIABILITIES Accounts payable Construction contract accruals Salaries, wages and bonuses Rent, utilities, insurance, taxes, etc. Income taxes (Notes 2 and 5) Current maturities of long-term debt Total current liabilities LONG-TERM DEBT Mortgages, 4J/2% to bVi%, maturing to 1979 Notes, AV2% to 6%, maturing to 1976 Total long-term debt Rentals payable over lease period on real estate subject to repurchase (see contra) (Note 1) $12,056,000 DEFERRED LIABILITIES Income taxes Management stock awards (Note 3) Total deferred liabilities STOCKHOLDERS' INVESTMENT (Note 6) Capital stock—$1.00 par value Common—5,000,000 shares authorized; issued Capital surplus (Note 4) Earned surplus Treasury stock, at cost (15,705 and 895 shares) (Note 3) Total stockholders' investment TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT 1965 1964 3,476,120 2,500,126 2,843,331 2,150,989 2,515,313 173,036 2,937,319 586,935 2,520,013 1,452,545 1,437,076 156,113 $13,658,915 $ 9,090,001 639,779 342,123 553,949 428,223 $ 981,902 $ 982,172 $ 4,074,850 268,780 $ 3,479,221 143,627 $ 4,343,630 $ 3,622,848 $ 4,369,696 $ 2,100,815 12,482,591 11,075,029 9,033,270 8,677,425 $25,885,557 $21,853,269 (226,779) (20,828) $25,658,778 $21,832,441 INCOME SALES DEDUCTIONS Cost of sales and operating expenses Rent Administrative and general expenses Taxes—payroll and other Depreciation and amortization Advertising and sales promotional expenses Interest and finance expenses Interest income NET INCOME BEFORE TAXES ON INCOME FEDERAL AND STATE INCOME TAXES (Notes 2 and 5) (Including $595,629 and $862,785 deferred taxes) NET INCOME EARNED SURPLUS BEGINNING BALANCE NET INCOME 4% STOCK DIVIDENDS (Amount transferred to capital stock and capital surplus) (Note 4) ENDING BALANCE 1965 1964 $98,842,940 $84,725,786 $72,892,588 7,590,172 5,207,293 2,809,999 2,188,057 1,281,472 70,136 (360,179) $91,679,538 $79,304,979 $62,496,610 6,363,496 4,856,151 2,541,112 2,087,656 1,184,541 78,271 (302,858) $ 7,163,402 $ 5,420,807 3,131,114 2,310,000 $ 4,032,288 $ 3,110,807 $ 8,677,425 $ 7,586,643 4,032,288 3,110,807 (3,676,443) (2,020,025) $ 9,033,270 $ 8,677,425 $44,643,225 $35,527,462 NOTES: The companies operate property and equipment at a substantial number of locations under leases. Those leases which have favorable repurchase options extend for eleven to eighteen years with average annual rentals of approximately $1,200,000, and have been set forth in the balance sheet in offsetting accounts in the amounts of the future rentals payable discounted at 53/i%to6%. Other leases cover terms up to a maximum of thirty-three years with an average of thirteen years. Minimum average annual rental payments for leases expiring after three years amount to approximately $3,500,000. Most of these leases have renewal privileges and additional rentals are payable under percentage clauses relating to sales. The Federal income tax returns of the companies for fiscal years 1961, 1962 and 1963 are currently being examined by the Internal Revenue Service. Based on advice from tax counsel, no substantial adjustments are anticipated which would affect adversely the companies financial position and earnings. Deferred stock bonus awards and contracts have been made with ninety-six management employees which vest pro rata until retirement, after which the vested shares are distributed in ten annual installments. Adjusted for stock dividends and splits, a total of 97,603 shares have been awarded, of which 17,073 shares had vested on July 25,1965. Treasury stock is being purchased periodically to fund the awards. The increase of $1,407,562 in capital surplus duringthe 52 weeks ended July 25,1965, represents: Excess of fair market value over par value of 84,033 shares of capital stock issued as a dividend $3,592,410 Amount transferred to capital stock account representing par value of 2,184,848 shares issued to effect a 2 for 1 stock split (2,184,848) Net increase $1,407,562 Under the Revenue Act of 1962 the companies receive investment credits against their income tax liabilities, with certain limitations, based on their annual investment in qualified property. These credits have been reflected as a reduction of Federal income taxes and result in an increase of $168,900 and $155,300 in net income for 1965 and 1964, respectively. B The Board of Directors have voted to submit for shareholders' approval at the annual meeting on November 9, 1965, proposals to exchange 375,000 shares of the company's common stock for six real estate corporations owned or controlled by officers and directors of Marriott-Hot Shoppes, Inc. and to increase the company's authorized capital stock to 10,000,000 shares. These corporations own eight properties now under long-term leases to Marriott- Hot Shoppes, Inc. The exchange, if consummated, will be accounted for as a "pooling of interests" and will add approximately $520,000 of stockholders' equity to the company's consolidated balance sheet, consisting of $6,380,000 of assets and $5,860,000 of liabilities. Detailed information will be furnished in a Proxy Statement to be mailed to shareholders in October 1965.