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Sheraton Corporation of America, 1963 Annual Report
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Starwood Hotels & Resorts. Sheraton Corporation of America, 1963 Annual Report - Image 17. 1963. 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/390/show/386.

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. (1963). Sheraton Corporation of America, 1963 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/390/show/386

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, 1963 Annual Report - Image 17, 1963, 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/390/show/386.

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, 1963 Annual Report
Creator (LCNAF)
  • Starwood Hotels & Resorts
Publisher Starwood Hotels & Resorts
Date 1963
Description Sheraton Corporation of America Annual Report for the year ending on April 30, 1963.
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_024_017.jpg
Transcript • NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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 February 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 $34,595 more than the cost of these investments. The equity in the net income of these companies for the year ended April 30, 1963 was $67,719. 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 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, $238,844, 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. 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 30,1964 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, 1963 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 Investments are pledged to secure notes, contracts, mortgages and bonds payable as follows: Securities — Marketable (Estimated Value $1,098,116) Securities — Other than Marketable (Estimated Value $1,155,660) Securities of Subsidiaries —- Eliminated in Consolidation Mortgage of Subsidiary — Eliminated in Consolidation Mortgages Receivable (Estimated Value $924,213) Book Value 1,330,086 1,061,150 21,064,414 239,763 561,442 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. A—Long-Term Indebtedness Bonds and Mortgages Payable include obligations of the Corporation as follows: 6% Debentures, due April 1, 1979 $ 1,755,700 A%% Convertible Debentures, due March 1, 1967 894,500 5% Debentures, due March 1, 1967 5,757,500 6JHi% Income Subordinated Debentures due January 1, 1981 12,598,400 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^ through September 30, 1959 to par at September 30, 1969. The payment required Apru 1, 1963 was paid in full. Debentures in the Treasury at April 30, 1963 aggregated $1,500. 4\K% 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 $552,500 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, 1963 aggregated $3,000. 6^£% 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 '/s of 1% annually from 101 through January 1, 1973 to par at January 1, 1981. The payment required December 31, 1962 was paid in full. Debentures in the Treasury at April 30, 1963 aggregated $8,500. 1}4% Debentures, due January 1, 1989 1962 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 less. 1965 through 1979, $990,000. 1980 through 1988, 10% of the principal amount of Debentures outstanding at October 31, 1979. The redemption price for sinking fund reduces V& of 1 % annually from 10234 at January 1, 1965 to par at January 1, 1985. Debentures aggregating $533,000 were tendered and retired, at the option of the bondholders, on January 1, 1963. Debentures in the Treasury at April 30, 1963 aggregated $124,300. 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. Also included are deferred income taxes represented by the accumulated reduction in Federal income taxes resulting from the deduction of the Investment Tax Credit. This amount is being amortized over a period of ten years. 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. These shares are presently convertible into Common at the rate of 2x/i shares of Common for each share 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 $8.50, or (2) an amount equal to the net profits of the Corporation for such fiscal year less cumulative dividends payable upon such stock for that year. Of the total Common shares shown as authorized, shares are reserved as follows: 37,800 shares for the conversion of the issued 4% Cumulative Convertible Preferred Stock. 181,849 shares for the exercise of warrants sold with the 6% Sinking Fund Debentures. Each warrant entitles the holder to buy, through October 1, 1964, 1.2 shares of Common Stock ($.50 Par) for $10, payable in cash or an equivalent face amount of Debentures of the 6% series, without adjustment for dividends or accrued interest. 41,115 shares for the conversion of 4^% Sinking Fund Debentures outstanding. 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