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Sheraton Corporation of America, 1961 Annual Report
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Starwood Hotels & Resorts. Sheraton Corporation of America, 1961 Annual Report - Image 24. 1961. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. May 21, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1325/show/1320.

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.

Starwood Hotels & Resorts. (1961). Sheraton Corporation of America, 1961 Annual Report - Image 24. 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/1325/show/1320

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.

Starwood Hotels & Resorts, Sheraton Corporation of America, 1961 Annual Report - Image 24, 1961, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed May 21, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1325/show/1320.

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 Sheraton Corporation of America, 1961 Annual Report
Creator (LCNAF)
  • Starwood Hotels & Resorts
Publisher Starwood Hotels & Resorts
Date 1961
Description Sheraton Corporation of America Annual Report for the year ending on April 30, 1961.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Starwood Hotels & Resorts
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 24
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_023_024.jpg
Transcript 22 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1 —Basis of Consolidation The consolidated financial statements include figures of the Corporation and its 50% or more owned subsidiaries* except Sheraton Mediterranean Ltd. which, since February 1961, has operated the Sheraton-Tel Aviv Hotel in Israel and except two domestic subsidiaries excluded in prior years which act as transfer agent and purchasing agent of the Corporation and most of the subsidiaries. The equity of the subsidiaries excluded from the financial statements, based on audited financial statements, was $118,000 more than the cost of these investments. The equity in the net income of these companies for the year ended April 30, 1961 was $29,345. Dividends received from these subsidiaries during the yeac totalled $295,100. The securities of certain of the consolidated subsidiaries of Sheraton Corporation of America were acquired at costs which were less than the book values of the equities thus acquired. That difference is shown in the balance sheet as Surplus from Consolidation. The securities of certain of the consolidated subsidiaries were acquired at more than the book values of the equities thus acquired. That difference has been treated in these statements as follows: As additional cost of fixed assets owned, allocated on a pro rata basis, $1,596,382 to land and leaseholds and $3,292,486 to buildings. As goodwill from consolidation, the unamortized portion of which, $314,566, is included in Other Assets. The remaining difference between the investments in subsidiaries consolidated, as shown by the parent's books, and the parent's equity in the net assets of such subsidiaries is included in Earned Surplus, representing accumulated undistributed earnings since acquisition. The properties of Canadian subsidiaries are included at Canadian dollar cost after adjustment to United States dollar equivalents reflecting exchange rates in effect at dates of acquisition and after adjustment to increase first mortgage bonds to par. The amounts of the first mortgage bonds of the Canadian subsidiaries due after April 30, 1962 are reflected at their United States dollar equivalents, using the exchange rate in effect at the date the indebtedness was incurred but not less than par. The current assets and liabilities are reflected at the April 30, 1961 exchange rate. 2 -Investments Investments are pledged to secure notes, contracts, mortgages and bonds payable as follows: Securities — Other than Marketable — Book Value $ 1,336,269 (Estimated Value $1,342,500) Securities of Subsidiaries — Eliminated in Consolidation — Book Value 10,766,056 Mortgage of Subsidiary — Eliminated in Consolidation —Book Value 308,077 Mortgages Receivable — Book Value 5,266,743 (Estimated Value $6,476,698) 3 —Property, Plant and Equipment Substantially all of the real estate and furniture and equipment are pledged to secure mortgages and other long-term debt. Officers' estimated values are based primarily upon earnings before deducting interest, depreciation and income taxes, and after adjustment for unusual repairs. These earnings are capitalized at varying rates (generally 10% to 12^4%), depending upon the type, age and location of the property, competition, debt financing and other factors. 4 -Long-Term Indebtedness Bonds and Mortgages Payable include obligations of the Corporation as follows: 6% Debentures, due April 1, 1979 $ 2,028,600 4?4% Convertible Debentures, due March 1, 1967 1,037,000 5% Debentures, due March 1, 1967 6,704,500 6Vi% Income Subordinated Debentures, due January 1, 1981 13,348,100 The Trust Indentures and supplements thereto require annual sinking fund payments as follows: 6% Debentures, due April 1, 1979 $130,952 on April 1 of each year in cash or in Debentures at their face value. The redemption price for sinking fund reduces from 101 */i through September 30, 1959 to par at September 30, 1969. The payment required April 1, 1961 was paid in full. Debentures in the Treasury at April 30, 1961 aggregated $1,400. 4%% and 5% Debentures, due March 1, 1967 The requirement for these two issues of Debentures is the same in total as originally in effect for the 4%% Debentures. The amount to be redeemed annually is allocated to the two issues on the basis of the respective principal amounts outstanding at the close of business on January 15 of each year. On March 1 of each year, not more than $557,000 and not less than $250,000 principal amount of Debentures. The redemption price for sinking fund reduces from 101 through March 1, 1960 to par at March 1, 1963. Debentures in the Treasury at April 30, 1961 aggregated $18,500. 6Vi% Debentures, due January 1, 1981 3% of the principal amount of the Debentures outstanding on the previous January 1. The redemption price for sinking fund reduces Vs of 1% annually from 101 through January 1, 1973 to par at January 1, 1981. The payment required December 31, 1960 was paid in full. Debentures in the Treasury at April 30, 1961 aggregated $50,800. 7Vl% Debentures, due January 1, 1989 1961 through 1964, 3% of the principal amount of Debentures issued prior to the preceding November 1 plus the excess of the calculated purchase fund payment over the amount paid to purchase tendered Debentures or $100,000, whichever is Iras. 1965 through 1979, $750,000. 1980 through 1988, 10% of the principal amount of Debentures outstanding at October 31, 1979. The redemption price for sinking fund reduces '/g of 1% annually from 1021/4 at January 1, 1965 to par at January 1, 1985 Debentures aggregating $92,000 were tendered and retired, at the option of the bondholders, on January 1, 1961. Debentures in the Treasury at April30,1961 aggregated $81,300. The 4^4% Debentures are convertible until redemption or maturity dates as follows: First Conversion Option — each $1,000 principal amount is convertible as to $500 into 32.4 shares of Common Stock and as to the other $500 into a Debenture for that amount. Second Conversion Option — each $500 principal amount of Debentures received under the first conversion option is convertible into 16.2 shares of Common Stock. The number of shares into which the Debentures are convertible is to be adjusted in certain events, including split-ups, reclassifications and certain stock dividends. Federal and State Taxes include taxes applicable to gains on sales of real estate. These gains will be reported for taxation on the installment basis as principal payments are received on second mortgages held on the properties sold. 5 —Capital Shares Hie Corporation's charter was amended during the fiscal year ended April 30, 1961 to authorize the issuance of 100,000 shares of Preferred Stock, $100 par value. This stock is issuable in series and at terms, at time of issue, within the discretion of the Board of Directors. An initial series of 15,120 shares of 4% Cumulative Convertible Preferred Stock was issued in September 1960. These shares are presently convertible into Common at the rate of 2l/2 shares of Common for each share of Preferred. The charter was further amended to increase the number of authorized Common shares, par $ .50, from 6,000,000 to 10,000,000 shares. The 4% Cumulative Convertible Preferred Stock is redeemable on or after January 1, 1966 in whole or in part at par plus accumulated dividends to date of redemption. So long as any shares of the 4% Cumulative Convertible Preferred Stock are outstanding, the Corporation, on and after September 1,1966, shall not declare and pay any dividends on its Common Stock, except dividends payable in Common Stock, or purchase or redeem any shares of Common Stock, unless it shall have paid or set aside for payment with respect to each prior fiscal year, beginning with the Corporation's fiscal year ending April 30,1966, as a Sinking Fund for the purchase or redemption of the Preferred shares, the lesser of (1) the total number of shares outstanding multiplied by $8.50, or (2) an amount equal to the net profits of the Corporation for such fiscal year less cumulative dividends payable upon such stock for that year. Of the total Common shares shown as issued and issuable, 8,789 shares are issuable upon surrender of old shares of United States Realty and Improvement Company and shares of Sheraton Corporation and its predecessor corporations. Of the total Common shares shown as authorized, shares are reserved as follows: