Marriott International, Inc. (NYSE: MAR) said it has signed a definitive agreement with lead counsel to the plaintiffs to settle litigation pending in Texas involving certain limited partnerships formed in the mid- to late-1980s. The company had announced terms of a tentative settlement on February 24 and has confirmed that, in connection with that settlement, it has taken a one-time, pre-tax, $39 million charge ($0.09 per share) in 1999. The charge is reported in the company`s 1999 Form 10-K, which is being filed with the Securities and Exchange Commission today. The agreement is still subject to certain conditions, including court approval.
The $39 million charge includes expenses for: cash settlement of the litigation; legal and related costs associated with the litigation and settlement; transaction charges associated with the acquisition of two limited partnerships by a joint venture comprised of Marriott International, Inc. and Host Marriott Corporation; and expenses relative to the expected settlement of litigation involving a limited partnership investment in the Atlanta Marriott Marquis hotel.
As previously stated, Marriott International expects the settlement to have no material impact on the company`s earnings per share going forward.