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Hilton Hotels, 1957 Annual Report
Image 26
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Hilton Hotels Corporation. Hilton Hotels, 1957 Annual Report - Image 26. 1957. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. August 12, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1056/show/1049.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Hilton Hotels Corporation. (1957). Hilton Hotels, 1957 Annual Report - Image 26. Annual Reports from the Hospitality Industry Archives. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. Retrieved from https://digital.lib.uh.edu/collection/hiltonar/item/1056/show/1049

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Hilton Hotels Corporation, Hilton Hotels, 1957 Annual Report - Image 26, 1957, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed August 12, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1056/show/1049.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

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Compound Item Description
Title Hilton Hotels, 1957 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1957
Description Hilton Hotels Annual Report for calendar year 1957.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Hilton Hotels Corporation
Genre (AAT)
  • annual reports
  • business records
Language English
Type (DCMI)
  • Text
  • Image
Original Item Location Conrad N. Hilton Papers
Digital Collection Annual Reports from the Hospitality Industry Archives
Digital Collection URL http://digital.lib.uh.edu/collection/hiltonar
Repository Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston
Repository URL http://www.uh.edu/hilton-college/About/hospitality-industry-archives
Use and Reproduction No Copyright - United States
File Name index.cpd
Item Description
Title Image 26
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_010_026.jpg
Transcript M o r=0 \n\ \m\ o in\^t 1—BASIS OF CONSOLIDATION It is the policy of the Company to include in the consolidated financial statements the accounts of its subsidiaries all of which, except for one majority-owned subsidiary, were wholly-owned at December 31, 1957, and to reflect in consolidated income subsidiary operations from dates of acquisition of control. Consolidated earned surplus at December 31, 1957 included $6,095,297 representing the combined undistributed net earnings of consolidated subsidiaries, less depreciation and amortization on a $5,368,356 excess of cost of securities acquired over net assets thus acquired of the consolidated subsidiaries, which excess has been applied as additional cost of fixed assets in consolidation. 2—INVESTMENTS Installment sales contract and other notes received by the Company in connection with sales of various properties since 1952 were, with the exception of a promissory note in the amount of $828,943 at December 31, 1957, secured by either first, second, chattel or real estate leasehold mortgages. These notes require various periodic payments and their maturities range from March 1, 1960 to July 1, 1976. As at December 31, 1957, the required payments receivable for the next five years approximated $2,587,363, 1958; $2,610,989, 1959; $2,975,627, 1960; $1,735,938, 1961; and $1,757,125, 1962. It is the Company's policy to defer the profit on those sales that qualify as installment sales under Treasury regulations, taking into income that portion of the profit as applies to payments received on the installment sales contract in the year in which such payments are received. At December 31, 1957, $17,150,348 of such profit was deferred, and, accordingly, during the next five years as the aforementioned payments are received, there will be included in income (taxable at the then effective long-term capital gains rate) the following: $1,612,481, 1958; $1,625,168, 1959; $1,954,840, 1960; $1,271,014, 1961; and $1,282,299, 1962. As of March 1, 1958 the Company entered into a 5%, $13,000,000 bank loan agreement maturing April 2, 1963 with right to extend maturity to October 1, 1963. Payments against this loan are to equal payments received from installment sales contract and other notes which were deposited with the lender for purposes of collection and application of proceeds from such notes under the terms of the loan. The Company carries in investments a minority interest of 250,000 shares of common stock of another hotel company which were received as part consideration in connection with a property sale in 1956 and the value ascribed to such shares was $1,500,000. The total market value, computed on the basis of the closing stock exchange price per share at December 31, 1957, was $750,000. 3—FIXED ASSETS Substantially, all of these assets are pledged to secure mortgages or other long-term debt of the consolidated companies. Furniture, furnishings and equipment owned by the Company in "Statler Hilton Hotels" under lease from an affiiliate, Statler Hotels Delaware Corporation, are pledged as additional security under a mortgage of that Company. Fixed assets were carried at cost, or were carried over from predecessor companies together with related depreciation reserves at predecessor's basis, plus additions at cost. 4-LAND OPTIONS Options to acquire land costing approximately $2,750,000 were held by a wholly-owned subsidiary at December 31, 1957. On February 7, 1958 the Company advanced $1,311,583 to its subsidiary for purposes of exercising certain of these options. 5—FEDERAL TAXES ON INCOME Federal income tax returns of the Company for the years 1951 and 1952 were examined by the Internal Revenue Service and proposed additional assessments totaling $567,112 have been made which the Company is protesting. Returns of the Company, its subsidiaries and predecessor companies are either under or subject to examination for 1953 and subsequent years. 6-LONG-TERM DEBT The trust indenture securing the 4J^% fifteen-year convertible debentures (conversion privilege to common stock expires January 2, 1958) requires annual sinking fund payments on January 15 of each year in an amount sufficient to redeem at the principal amount without premium, 3% for each of the years through 1962 and 4% for each of the years thereafter. The Company has complied with this provision. The aggregate annual sinking fund and maturity requirements on the total long-term debt at December 31, 1957 together with payments required in connection with indebtedness committed, during the first part of 1958, for each of the next five years ending December 31, follows: 1958, $6,863,876; 1959, $7,094,998; 1960, $7,640,781; 1961, $6,006,107; and 1962, $4,172,112. 24-