Summary
Marriott International, Inc. (MAR) filed an 8-K on July 25, 2018, to disclose the impact of adopting new accounting standards, specifically Accounting Standards Update (ASU) 2014-09, known as "Revenue from Contracts with Customers" (Topic 606). This adoption, which occurred in the first quarter of 2018 and was applied retrospectively, affects how the company recognizes revenue. The filing includes an exhibit (Exhibit 99) presenting "As Recast" unaudited financial information for the company's 2017 quarters and fiscal year, reflecting these accounting changes. This recast financial data is provided to help investors compare Marriott's 2018 performance against prior periods under the new accounting rules. Investors should note that this information is furnished and not incorporated into other SEC filings, meaning it's intended as supplementary disclosure for comparability. The primary impact is on revenue recognition, and while the specific financial line items affected are detailed in Exhibit 99, the overarching goal is to provide a clearer, more consistent view of the company's financial results over time.
Key Highlights
- 1Marriott International adopted new revenue recognition standards (ASC 606) effective Q1 2018.
- 2The adoption was applied using the full retrospective transition method.
- 3An exhibit (Exhibit 99) is provided, showing restated (recast) unaudited financial results for 2017 to reflect the new accounting standard.
- 4The purpose of the recast information is to aid investor comparability of 2018 results against prior periods.
- 5This 8-K filing is primarily for disclosure and informational purposes regarding the accounting standard adoption.
- 6The recast financial information will be reflected in future quarterly and year-end filings.