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Sheraton Corporation of America, 1967 Annual Report
Image 17
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Starwood Hotels & Resorts. Sheraton Corporation of America, 1967 Annual Report - Image 17. 1967. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. September 17, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1346/show/1342.

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. (1967). Sheraton Corporation of America, 1967 Annual Report - Image 17. 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/1346/show/1342

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, 1967 Annual Report - Image 17, 1967, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed September 17, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1346/show/1342.

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, 1967 Annual Report
Creator (LCNAF)
  • Starwood Hotels & Resorts
Publisher Starwood Hotels & Resorts
Date 1967
Description Sheraton Corporation of America Annual Report for the year ending on April 30, 1967.
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 17
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_026_017.jpg
Transcript 15 Notes to Consolidated Financial Statements/For the Year ended April 30,1967 1 — Basis of Consolidation The consolidated financial statements include the Corporation and its 50% or more owned subsidiaries, except Sheraton Mediterranean Ltd. which leases and operates the Sheraton- Tel Aviv Hotel in Israel, and Sheraton de Venezuela, C. A. which manages two hotels in Venezuela; also, 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 $130,882 more than the cost of these investments. The equity in the net income of these companies for the year ended April 30, 1967 was $97,700. Dividends received from these subsidiaries during the year totalled $150,000. 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 book values of the equities thus acquired. That difference has been treated in these statements as additional cost of fixed assets owned, allocated on a pro rata basis to land and leaseholds and to buildings, and as goodwill from consolidation, the unamortized portion of which, $587,138 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 reflected in Earned Surplus, representing accumulated undistributed earnings less losses since acquisition. Revenue of properties operated under management agreements and franchised properties are not included in the Consolidated Income Statement. Management Fees and Franchise Fees received from those operations, however, are reflected under the caption "Gross Operating Income — Other." 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, 1968 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 of the Canadian and other foreign operations are reflected at April 30, 1967 exchange rates. Income and expenses of foreign operations, except for depreciation and financing expenses, have been converted to United States dollar equivalents at the average rates of exchange for the respective periods after adjustment for the difference arising from the conversion of the assets and liabilities described above. 2 — Investments Securities — Other than Marketable have been valued as follows: At Estimated Value for Securities Closely Held $92,700 At Estimated Value for Securities of a Garage Corporation Serving a Subsidiary's Hotel 5,000 $97,700 Investments in Securities of Subsidiaries — Eliminated in Consolidation with a total book value of $2,147,500 are pledged to secure notes and mortgages payable. 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. 4— Long-Term Indebtedness Long-term indebtedness includes obligations of the Corporation as follows: 6Vi% Income Subordinated Debentures, Due January 1, 1981 $10,635,500 7Vz% Capital Income Sinking Fund Debentures, due January 1, 1989 28,194,000 (Stated separately on Balance Sheet) 6% Note Payable, due February 15, 1978 9,400,000 The Trust Indentures, supplements thereto and Loan Agreement with respect to the foregoing require annual sinking fund payments as follows: 6V2% 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, 1966 was paid in full. The amortization requirement on December 31, 1967 is $334,900. Debentures in the Treasury at April 30, 1967 aggregated $525,100 which exceeds the foregoing requirement. 7Vz% Debentures, due January 1, 1989 1967 through 1979, $990,000 on January 1 of each year. 1980 through 1988, 10% of the principal amount of Debentures outstanding at October 31, 1979. The redemption price for sinking fund reduces Vs of 1% annually from 102% at January 1, 1967 to par at January 1, 1985. Debentures aggregating $990,000 were retired on January 1, 1967. Debentures in the Treasury at April 30, 1967 aggregated $54,400. 6% Note Payable, due February 15, 1978 1967 through 1977, $600,000 on February 15 of each year. The loan agreement pursuant to which the 6% Note Payable was issued contains certain restrictions on payment of dividends by the Corporation, issuance of debt by subsidiaries, and guarantees by the Corporation of new debt and lease obligations of subsidiary companies (see Note 6). Federal, Foreign and State Taxes Payable Include known long-term tax liabilities and provision for proposed or anticipated additional Federal, Foreign and State taxes, including amounts which are under litigation. 5 — Capital Shares The Corporation's charter authorizes 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 1960. In accordance with the Sinking Fund requirements, during the current year 1,285 shares were redeemed and retired. The 13,835 shares outstanding at April 30, 1967 are presently convertible into Common at the rate of one share of Common for each $50 par value of Preferred and are redeemable 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 tne Corporation's fiscal year ended 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 originally 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. The amount required to be set aside by August 31, 196/ is $128,520. Of the total Common shares shown as authorized, shares are reserved as follows: 27,670 shares for the conversion of the issued and outstanding 4% Cumulative Convertible Preferred Stock. 122,700 shares for the exercise of the warrants sold at $.75 per warrant to officers and employees during the year ended April 30, 1962. Each warrant entitles the holder to buy, to November 1976, one share of Common Stock ($.50 Par) for $50, payable in cash. No fractional shares will be issued as a result of the exercise of warrants or conversion provisions described above, but cash adjustments will be made in lieu thereof.