Summary
Marriott International, Inc. (MAR) filed an 8-K on October 3, 2008, to furnish investors with a detailed schedule of cost reimbursements revenue for the fiscal years 2004 through 2007. This filing primarily serves to provide historical data on a specific revenue stream that, while significant in gross amount, has no impact on the company's operating or net income. This cost reimbursements revenue primarily relates to payroll costs for employees at managed properties where Marriott is the employer. The company emphasizes that these reimbursements are recorded at cost, with no markup, ensuring they do not affect profitability metrics. Investors should note this disclosure as it clarifies the nature of a substantial revenue component and its neutral impact on Marriott's earnings performance.
Key Highlights
- 1Disclosure of cost reimbursements revenue for fiscal years 2004-2007.
- 2Cost reimbursements revenue has no impact on Marriott's operating income or net income.
- 3This revenue primarily relates to payroll costs for employees at managed properties where Marriott is the employer.
- 4Reimbursements are recorded at cost with no added markup.
- 5The detailed schedule of segment data for reimbursed costs is provided as Exhibit 99.
- 6The filing was made on October 3, 2008.