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Sheraton Corporation of America, 1965 Annual Report
Image 17
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Starwood Hotels & Resorts. Sheraton Corporation of America, 1965 Annual Report - Image 17. 1965. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. November 13, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1466/show/1462.

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. (1965). Sheraton Corporation of America, 1965 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/1466/show/1462

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, 1965 Annual Report - Image 17, 1965, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed November 13, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1466/show/1462.

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, 1965 Annual Report
Creator (LCNAF)
  • Starwood Hotels & Resorts
Publisher Starwood Hotels & Resorts
Date 1965
Description Sheraton Corporation of America Annual Report for the year ending on April 30, 1965.
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_025_017.jpg
Transcript NOTES TO CONSOLIDATED FINANCIAL STAtWm For the Year ended April 30v 1965 ENTS 15 1— Basis of Consolidation The consolidated financial statements include the Corporation and its 50% or more owned subsidiaries, except Sheraton Mediterranean Ltd., which since 1961 has leased and operated the Sheraton- Tel Aviv Hotel in Israel, and Sheraton de Venezuela, C.A., which since April 1963 has managed the Macuto-Sheraton Hotel 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 $129,182 more than the cost of these investments. The equity in the net income of these companies for the year ended April 30, 1965 was $111,910. Dividends received from these subsidiaries during the year totalled $27,916. 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, $741,333, 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, 1966 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, 1965 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 Bonds Held $ 37,500 At Estimated Value for Securities Closely Held 56,870 At Estimated Value for Securities of a Garage Corporation Serving a Subsidiary's Hotel 5,000 At Market Value for Securities with Sales Restrictions 1,423,982 $ 1323352 Investments are pledged to secure notes, contracts, mortgages and bonds payable as follows: Book Value Securities — Marketable $ 1,329,758 (Market Value -$1,270,531) Securities—Other than Marketable 944,872 (At Values Described Above — $1,193,695) Securities of Subsidiaries — Eliminated in Consolidation 13,614,418 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 Bonds and Mortgages Payable include obligations of the Corporation as follows: 6%Debentures, due April 1, 1979 $ 1,492,800 4%% Convertible Debentures, due March 1, 1967 738,500 5% Debentures, due March 1, 1967 4,779,000 6i/2% Income Subordinated Debentures, due January 1, 1981 11,496,000 The Trust Indentures and supplements thereto require annual sinking fund payments as follows: 6% Debentures, due April 1, 1979 $ 130,952 on April I, of each year in cash or in Debentures at their face value. The redemption price for sinking fund reduces from 101i/£ through September *30, 1959 to par at September 30, 1969. The payment required April 1, 1965 was paid in full. Debentures in the Treasury at April 30, 1965 aggregated $600. 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 $552300 and not less than $250,000 principal amount of Debentures. The redemption price for sinking fund was reduced to par at March 1, 1963. Debentures in the Treasury at April 30, 1965 aggregated $32,500. 6y2% 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 ys of 1%annually from 101 through January 1, 1973 to par at January 1, 1981. The payment required December 31, 1964 was paid in full. The amortization requirement on December 31, 1965 is $355,900. Debentures in the Treasury at April 30, 1965 aggregated $365,700, which exceeds the foregoing requirement. 7y2% Debentures, due January 1, 1989 1965 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 i/8 of 1% annually from 102i/£ at January 1, 1965 to par at January 1, 1985. Debentures aggregating $990,000 were retired on January 1, 1965. Debentures in the Treasury at April 30, 1965 aggregated $45,400. The 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 The Corporation's charter authorizes the issuauce 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. These shares are presently convertible into Common at the rate of one share of Common for each $45 par value of Preferred and are 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 $830, 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 authorized, shares are reserved as follows: