Keyword
in
Collection
Date
to
Sheraton Corporation of America, 1965 Annual Report
Image 18
Citation
MLA
APA
Chicago/Turabian
Starwood Hotels & Resorts. Sheraton Corporation of America, 1965 Annual Report - Image 18. 1965. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. November 12, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1466/show/1463.

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 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/1466/show/1463

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 18, 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 12, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1466/show/1463.

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.

URL
Embed Image
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 18
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_025_018.jpg
Transcript ■ 16 • NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the Year ended April 30,1965 30,240 shares for the conversion of the issued 4% Cumulative Convertible Preferred Stock. 34,522 shares for the conversion of 4^% Sinking Fund Debentures, of which 34,117 shares are applicable to Debentures outstanding and 405 shares are applicable to Debentures held in the Treasury. 357,109 shares for the exercise of the warrants issued with the 5% Sinking Fund Debentures. Each warrant entitles the holder to buy, through September 1, 1966, 1.2 shares of Common Stock ($.50 Par) for $25; payable in cash or an equivalent face amount of 5% Debentures, without adjustment for dividends or accrued interest. 131,700 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 ex- excise of warrants or conversion provisions described above, but cash adjustments will be made in lieu thereof. 6—Earned Surplus The portion of consolidated earned surplus applicable to Canadian subsidiaries is $8,303,454, which is subject to a 15% withholding tax on dividends. In connection with an issue of Debentures in October 1956, payment of dividends by a Canadian subsidiary is restricted to earnings accumulated subsequent to August 31, 1955. The foregoing amount includes approximately $2,495,000 of earnings accumulated to August 31, 1955 which are subject to this restriction. Dividends or other payments of any kind with respect to subordinated debt, capital stock or warrants, other than stock dividends, may be made only out of consolidated net income of Sheraton Corporation of America and Subsidiaries since April 30, 1953, and only if full sinking fund payments have been made to the date of such payments. Accumulated net income available for this purpose as at April 30, 1965 exceeded the amount of earned surplus at that date. 7—Long-Term Leases As at April 30, 1965, 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 $900,000, 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, 1965 under leases with annual minimum rentals totalling approximately $5,500,000. Of this amount, approximately $4,400,000 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, 1965, other long-term lease rental obligations on garages, parking lots, etc. executed by subsidiaries of the Corporation were at an annual rate of approximately $400,000. 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 $2,000,000 in addition to liabilities already recorded at April 30, 1965. 9—Pensions and Savings The parent company has established a voluntary non- contributory Pension Plan and Trust covering all parent company employees and employees of certain subsidiaries in the United states who have completed two years of continuous service, have attained age 30 and have not reached age 65. The required contributions to the Pension Trust applicable to the year ended April 30, 1965 were $187,054, representing the annual cost of the Pension Plan for that period (inclusive of cost to three subsidiaries) as estimated by the actuaries. The foregoing amount represents current service benefits of $176,040 and a contribution to past service benefits of $10,956. The remaining unfunded cost of past service benefits is approximately $49,000, which the Corporation intends to fund over the succeeding five years. These amounts are exclusive of expenses of administering the Plan. Effective May 1, 1958, a subsidiary established a trusteed non- contributory Pension Plan covering all its eligible employees. The estimated annual cost of the Plan is $279,477, of which $92,389 was applicable to past service benefits based on amortizing the cost over a thirty-year period. The unfunded cost of past service benefits was approximately $1,495,500 at April 30, 1965. 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. IO—Consolidated Income Statement Adjustments of income resulting from the examination of Federal Income Tax returns for prior years are reflected in the consolidated statement of Earned Surplus tor the year ended April 30, 1965. The consolidated income statement for the year ended April 30, 1964 has been restated to reflect such adjustments applicable to that year which results in an increase in net income of $65,286. This resulted from a reduction in depreciation of $274,260, an increase in Interest Expense and Federal and Foreign Income Taxes of $58,028 and $150,946, respectively. The debt discount and expense, incurred in connection with the 6%, 4%% and 5% Debentures, is being amortized over the lives of the respective issues, giving effect to reductions in outstanding Debentures. Similar expense, applicable to the 6)4% and 7i/£% Debentures and other debts 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, 1965 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, 1964. 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, 1965 and the results of their operations for the years ended April 30, 1965 and 1964, in conformity with generally accepted principles of accounting applied on a consistent basis. HARRIS, KERR, FORSTER & COMPANY Boston, Massachusetts, July 9, 1965