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with the IRS and the Department of Labor Over Deductions Taken for Employee Stock Ownership Plan
WASHINGTON, June 8, 2007 - Marriott International, Inc. (NYSE: MAR)
late yesterday reached a settlement of previously
Arne M. Sorenson, Executive Vice President and Chief Financial Officer, said, "We are pleased to reach this compromise, bringing this dispute to a swift and final resolution using the IRS's Fast Track Settlement process." Marriott received a Notice of Proposed Adjustment from the IRS on March 1, 2007 challenging most of the ESOP related federal income tax deductions claimed by the company. The settlement will result in an after-tax charge totaling approximately $54 million ($0.13 per diluted common share), and a reduction in shareholders' equity of approximately $114 million in Marriott's second quarter. These amounts were not included in the company's previous second quarter earnings guidance. As a result of the settlement, the company will make cash payments to the U.S. Treasury and state tax jurisdictions of approximately $220 million. The payments reflect income taxes, excise taxes and interest charges. No penalties were assessed. MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading lodging company, operating and franchising nearly 2,900 lodging properties in the United States and 67 other countries and territories. The company is headquartered in Washington, D.C., and had approximately 151,000 employees at 2006 year-end. In fiscal year 2006, Marriott International reported sales from continuing operations of $12.2 billion. |
Marriott International, Inc.
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Also See: | The IRS Auditing Marriott International Inc.'s Federal Tax Returns for fiscal 2000 through 2002 Regarding $1 billion in Deductions Related to Employee Stock Ownership Plan / March 2007 |
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