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Sheraton Corporation of America, 1967 Annual Report
Image 18
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Starwood Hotels & Resorts. Sheraton Corporation of America, 1967 Annual Report - Image 18. 1967. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. May 23, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1346/show/1343.

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 18. 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/1343

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 18, 1967, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed May 23, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1346/show/1343.

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 18
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_026_018.jpg
Transcript Wmmfflmmm HH 16 Notes to Consolidated Financial Statements/For the Year ended April 30,1967 6 — Earned Surplus The portion of consolidated earned surplus applicable to Canadian subsidiaries is $11,423,409, which is subject to a 15% withholding tax on dividends. In connection with outstanding Debentures, payment of dividends by a Canadian subsidiary is restricted to amounts based upon earnings. The foregoing amount includes approximately $4,555,000 of earnings subject to this restriction. In connection with the 6% Note Payable, due February 15, 1978, the Corporation may pay dividends or make other payments of any kind with respect to subordinated debt, capital stock or warrants, other than stock dividends, only to the extent of an amount determined in accordance with a formula related to earnings since April 30, 1965, plus $2,000,000. The unrestricted balance available for this purpose as of April 30, 1967 exceeded the amount of earned surplus at that date. 7 — Long-Term Leases As at April 30, 1967, Sheraton Corporation of America was obligated as guarantor of a subsidiary office building lease expiring in 2010. The present annual rental of $420,343 will be reduced in December 1981 to approximately $195,000. The guarantee is limited to payment of no more than $700,000 reducing $100,000 a year to a minimum of $100,000, in the event such amounts are deposited upon default. Certain hotels and motor inns are operated at April 30, 1967 under leases with annual minimum rentals totalling approximately $7,800,000. Of this amount, approximately $6,800,000 represents the annual rents under those leases which are guaranteed by the Corporation for varying terms in accordance with the lease terms. At April 30, 1967, other long-term lease rental obligations on garages, parking lots, etc. executed by subsidiaries of the Corporation were at an annual rate of approximately $900,000 . 8 — Commitments and Contingent Liabilities The Corporation is liable as guarantor of certain notes and mortgages payable of subsidiaries. All of these obligations are included as liabilities in the consolidated balance sheet. On June 14, 1955, the Corporation executed an Agreement and Declaration of Trust, creating the Sheraton Employees Savings Plan. Upon voluntary or involuntary withdrawal, an employee is entitled to receive, as a minimum, his contribution plus interest at 3% per annum. The Corporation is obligated to pay any deficiency which may exist in the Trust in computing this amount. Contracts have been entered into and commitments made with respect to major construction projects for construction in progress amounting to approximately $5,400,000 in addition to liabilities already recorded at April 30, 1967. 9 — Pensions and Savings Contributions to Pension Plans, exclusive of expenses of administering the Plans, applicable to the year ended April 30, 1967, as estimated by the actuaries, were as follows: Remaining Service Costs Unfunded Cost of Past Service Plan Current Past Total Benefits Parent Company (including cost to five subsidiaries) $305,223 $ 76,547 $ 381,770 $ 586,000 Major Plans of Other Consolidated Subsidiaries 483,674 158,294 641,968 2,454,000 Total, All Plans $788,897 $234,841 $1,023,738 $3,040,000 In addition to the above, certain subsidiaries maintain pension plans which are funded by the purchase of insurance policies with annual premiums totalling approximately $80,000. The Corporation intends to amortize the remaining unfunded past service benefits listed above over periods of thirty years or less. The Parent Company's voluntary non-contributory Pension Plan and Trust covers all Parent Company employees and employees of certain United States subsidiaries who have completed two years of continuous service, have attained age 30 and have not reached age 65. The actuarially computed liabilities for benefits accrued to participants through the end of the fiscal year exceeded the market value of the assets in the plans by approximately $2,100,000. The Corporation and substantially all of its United States subsidiaries inaugurated an Employees Savings Plan, the details of which are set forth in an Agreement and Declaration of Trust dated June 14, 1955. The Plan provides that, based on formula limitations, the employing companies will pay up to 25% of employees' contributions which may be made up to 6% of their pay. 10 — Consolidated Income Statement The debt discount and expense, incurred in connection with the &Vi% and 7Vi% Debentures and other debt, is being amortized uniformly on a straight line basis over the various periods of time from the respective inceptions of the debts to their respective maturities, giving effect to acquisitions in excess of annual requirements. Report of Independent Certified Public Accountants To the Stockholders, Sheraton Corporation of America, Boston, Massachusetts. We have examined the accompanying consolidated balance sheet of Sheraton Corporation of America and its Subsidiaries as at April 30, 1967 and the related consolidated surplus and income statements for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. We had made a similar examination for the year ended April 30, 1966. In our opinion, the accompanying consolidated balance sheet and the related consolidated statements of surplus and income, present fairly the financial condition of Sheraton Corporation of America and Subsidiaries as at April 30, 1967 and the results of their operations for the years ended April 30, 1967 and 1966, in conformity with generally accepted principles of accounting applied on a consistent basis. HARRIS, KERR, FORSTER & COMPANY Boston, Massachusetts, July 7,1967