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Hilton Hotels, 1962 Annual Report
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Hilton Hotels Corporation. Hilton Hotels, 1962 Annual Report - Image 34. 1962. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. February 26, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/120/show/113.

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. (1962). Hilton Hotels, 1962 Annual Report - Image 34. 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/120/show/113

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, 1962 Annual Report - Image 34, 1962, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed February 26, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/120/show/113.

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, 1962 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1962
Description Hilton Hotels Annual Report for calendar year 1962.
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 34
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_015_034.jpg
Transcript HILTON HOTELS CORPORATION AND CONSOLIDATED SUBSIDIARIES Notes to Financial Statements. (1) BASIS OF CONSOLIDATION The consolidated statements include all divisions and subsidiaries (all wholly-owned) of Hilton Hotels Corporation (the Company) and a majority interest of the Company in an affiliated partnership with the exception that the subsidiary, Hilton Hotels International, Inc. (International) excludes from its consolidation certain foreign divisions and subsidiaries due either to unstable political situations or to currency restrictions or both. These latter operations are carried as investments and income therefrom is included in consolidation when received in the United States. Investments in and advances to non-consolidated foreign divisions and subsidiaries of International at December 31, 1962 aggregated $1,087,141., whereas that Company's equity in the net assets of such divisions and subsidiaries was $1,517,758. Consolidated earned surplus at December 31, 1962 included $10,363,279., representing the combined undistributed net earnings of consolidated subsidiaries. (2) INVESTMENTS Notes received in connection with sales of various properties since 1952 were secured by either first, second, real estate leasehold or chattel mortgages. These notes require various periodic payments and their maturities range from September 30, 1963 to July 1, 1976. Required payments receivable for the next five years approximate $916,402., 1963; $279,221., 1964; $400,099., 1965; $1,640,374., 1966; and $142,563., 1967. The profit on those sales that qualify as installment sales under Treasury regulations has been deferred and there will be taken into income that portion of the profits as applies to payments on the installment sales contracts in the year in which such payments are received. At December 31, 1962, $3,068,209., 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: $777,672., 1963; $138,872., 1964; $226,561., 1965; $994,254., 1966; and $47,201., 1967. Investments and advances of the Company and its wholly-owned subsidiary Hilton Hotels International, Inc., in 50% owned companies aggregated $8,803,014., while the equity in the net assets of such companies amounted to $8,421,579. (3) FIXED ASSETS A major portion of these assets are pledged to secure mortgages or other long-term debt of the consolidated companies. Fixed assets were carried at cost or were carried over from predecessor companies together with related depreciation reserves at predecessors' basis. Additions to such assets were carried at cost. The investment in Statler Hotels Delaware Corporation, which was merged with the Company as at August 1, 1962, was acquired at $10,851,157.19 more than the book value of the equity thus acquired. This excess was treated as additional cost of fixed assets, and, the total cost of fixed assets thus acquired was allocated to the various Statler Hilton properties. Depreciation of fixed assets has been computed on the basis of the straight-line method for accounting purposes. For income tax purposes, the Company has elected to compute depreciation on the sum-of-the-digits method with respect to certain additions to fixed assets. Accordingly, the Company has included in the provision for income taxes and in the balance sheet an amount equal to the Federal income tax benefit from the use of this method of accelerated depreciation. <4) FEDERAL TAXES ON INCOME Federal income tax returns of the Company subsequent to 1957 and returns of subsidiaries and predecessor companies for 1954 and subsequent years are either under or subject to examination by the Internal Revenue Service. (5) LONG-TERM DEBT A trust indenture securing the AlA% fifteen-year convertible debentures of the Company (conversion privileges expired January 2, 1958), maturing January 1, 1970 requires annual sinking fund payments on January 15th 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 Company's 6% subordinated debentures maturing October 15, 1984 are entitled to the benefit of an annual sinking fund commencing October 15, 1965. The Company is obligated to pay into the sinking fund on or before October 15th in each year from 1965 to 1969 a sum equal to 2% of the largest principal amount of debentures outstanding on or prior to August 31, 1965, and thereafter annually, an amount equal to 1/15th of the principal amount of debentures outstanding on October 15, 1969 after giving effect to redemptions out of the sinking fund payment made for that date. The 4% twenty-five year sinking fund debentures maturing July 1, 1983 are entitled to the benefits of an annual sinking fund, beginning July 1, 1962, in an amount sufficient to redeem, at their principal amount, without premium, 2% of the highest principal amount at any time outstanding. The company has complied with this provision. The annual sinking fund and maturity requirements on total long-term debt for each of the next five years ending December 31, follows: 1963, $5,011,511.; 1964, $14,155,601.; 1965, $3,475,580.; 1966, $3,598,511.; and 1967, $3,721,940. (6) CAPITAL STOCK All of the outstanding 5% cumulative first preferred Series "A" shares were redeemed at par during 1962, and all of the outstanding 5J^% Series "A" preferred shares were either converted into common stock of the Company or redeemed at a redemption price of $26,395 per share. 450,000 shares of common stock of the Company have been reserved for the exercise of warrants which were originally attached to the $30,000,000. issue in 1959 of 6% subordinated sinking fund debentures of the Company. Each $1,000 debenture unit carried a warrant to purchase 15 shares of common stock. The warrants provide that this stock may be purchased at $42 per share until October 15, 1963; $46. per share thereafter to October 15, 1967; and, $50. per share thereafter to October 15, 1971, the expiration date of the warrants. (7) COMMITMENTS AND CONTINGENT LIABILITIES The Company has commitments with a balance of approximately $15,810,000. in connection with contracts for the construction of hotels. 32