SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Under Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 13, 1998 NEW MARRIOTT MI, INC. (To Be Renamed "Marriott International, Inc.") (Exact name of registrant as specified in its charter) Delaware 52-2055918 (State of incorporation) (IRS Employer Identification No.) 1-13188 (Commission File No.) 10400 Fernwood Road, Bethesda, Maryland 20817 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (301) 380-3000 (Former name or former address, if changed since last report) Item 5. Other Events Financial data for the Registrant for 1997 and 1996, by quarter is given below. The financial data is unaudited, and should be read in conjunction with the combined financial statements and notes thereto included in the Registrant's Annual Report on Form 10-K for the fiscal year ended January 2, 1998. QUARTERLY FINANCIAL DATA - UNAUDITED
($ in millions, except per share data) 1997 (1) -------------------------------------------------------------------------- First Second Third Fourth Fiscal Quarter Quarter Quarter Quarter Year ---------- ----------- ----------- ----------- ---------- SALES Lodging Rooms $ 898 $ 1,061 $ 991 $ 1,338 $ 4,288 Food and beverage 321 393 314 549 1,577 Other 231 260 299 353 1,143 ---------- ----------- ----------- ----------- ---------- 1,450 1,714 1,604 2,240 7,008 Contract Services 459 481 469 629 2,038 ---------- ----------- ----------- ----------- ---------- 1,909 2,195 2,073 2,869 9,046 ---------- ----------- ----------- ----------- ---------- OPERATING COSTS AND EXPENSES Lodging Departmental direct costs Rooms 197 232 227 308 964 Food and beverage 239 289 253 414 1,195 Other operating expenses 893 1,050 993 1,344 4,280 ---------- ----------- ----------- ----------- ---------- 1,329 1,571 1,473 2,066 6,439 Contract Services 445 465 464 624 1,998 ---------- ----------- ----------- ----------- ---------- 1,774 2,036 1,937 2,690 8,437 ---------- ----------- ----------- ----------- ---------- OPERATING PROFIT Lodging 121 143 131 174 569 Contract Services 14 16 5 5 40 ---------- ----------- ----------- ----------- ---------- Operating profit before corporate expenses and interest 135 159 136 179 609 Corporate expenses (20) (20) (20) (28) (88) Interest expense (7) (8) (3) (4) (22) Interest income 5 6 8 13 32 ---------- ----------- ----------- ----------- ---------- INCOME BEFORE INCOME TAXES 113 137 121 160 531 Provision for income taxes 44 53 47 63 207 ---------- ----------- ----------- ----------- ---------- NET INCOME $ 69 $ 84 $ 74 $ 97 $ 324 ========== =========== =========== =========== ========== EARNINGS PER SHARE (2,3) Pro Forma Basic Earnings per Share $0.27 $0.33 $0.29 $0.38 $1.27 ========== =========== =========== =========== ========== Pro Forma Diluted Earnings per Share $0.26 $0.31 $0.27 $0.36 $1.19 ========== =========== =========== =========== ========== (1) The quarters consist of 12 weeks, except the fourth quarter, which includes 16 weeks in 1997 and 17 weeks in 1996. (2) Pro forma earnings per share data reflect the adoption, in the fourth quarter of 1997, of Statement of Financial Accounting Standards No. 128, "Earnings Per Share." (3) The sum of the earnings per share for the four quarters differs from the annual per share data due to the required method of computing weighted average number of shares in interim periods.
1996 (1) -------------------------------------------------------------------------- First Second Third Fourth Fiscal Quarter Quarter Quarter Quarter Year ---------- ----------- ----------- ----------- ---------- SALES Lodging Rooms $ 781 $ 856 $ 836 $ 1,146 $ 3,619 Food and beverage 303 327 271 460 1,361 Other 189 205 194 286 874 ---------- ----------- ----------- ----------- ---------- 1,273 1,388 1,301 1,892 5,854 Contract Services 236 308 344 525 1,413 ---------- ----------- ----------- ----------- ---------- 1,509 1,696 1,645 2,417 7,267 ---------- ----------- ----------- ----------- ---------- OPERATING COSTS AND EXPENSES Lodging Departmental direct costs Rooms 184 191 196 272 843 Room and beverage 231 239 220 348 1,038 Other operating expenses 764 843 784 1,130 3,521 ---------- ----------- ----------- ----------- ---------- 1,179 1,273 1,200 1,750 5,402 Contract Services 229 294 330 504 1,357 ---------- ----------- ----------- ----------- ---------- 1,408 1,567 1,530 2,254 6,759 ---------- ----------- ----------- ----------- ---------- OPERATING PROFIT Lodging 94 115 101 142 452 Contract Services 7 14 14 21 56 ---------- ----------- ----------- ----------- ---------- Operating profit before corporate expense and interest 101 129 115 163 508 Corporate expenses (14) (15) (15) (29) (73) Interest expense 8 (23) (12) (10) (37) Interest income 9 9 7 12 37 ---------- ----------- ----------- ----------- ---------- INCOME BEFORE INCOME TAXES 104 100 95 136 435 Provision for income taxes 40 38 36 51 165 ---------- ----------- ----------- ----------- ---------- NET INCOME $ 64 $ 62 $ 59 $ 85 $ 270 ========== =========== =========== =========== ========== EARNINGS PER SHARE(2,3) Pro Forma Basic Earnings per Share $0.25 $0.24 $0.23 $0.33 $1.06 ========== =========== =========== =========== ========== Pro Forma Diluted Earnings per Share $0.22 $0.23 $0.22 $0.31 $0.99 ========== =========== =========== =========== ========== SIGNATURES Under the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. NEW MARRIOTT MI, INC. By: /s/ Stephen E. Riffee --------------------------- Stephen E. Riffee Vice President, Finance and Chief Accounting Officer Date: March 13, 1998