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Hilton Hotels, 1960 Annual Report
Image 30
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Hilton Hotels Corporation. Hilton Hotels, 1960 Annual Report - Image 30. 1960. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. May 30, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/476/show/469.

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.

Hilton Hotels Corporation. (1960). Hilton Hotels, 1960 Annual Report - Image 30. 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/476/show/469

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.

Hilton Hotels Corporation, Hilton Hotels, 1960 Annual Report - Image 30, 1960, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed May 30, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/476/show/469.

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 Hilton Hotels, 1960 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1960
Description Hilton Hotels Annual Report for calendar year 1960.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Hilton Hotels Corporation
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 30
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_013_030.jpg
Transcript HILTON HOTELS CORPORATION AND CONSOLIDATED SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS 28 1-BASIS OF CONSOLIDATION The consolidated statements include all divisions and subsidiaries of the Company with the exception that the wholly-owned subsidiary, Hilton Hotels International, Inc., included in consolidation, excludes from its consolidation four foreign divisions and subsidiaries due either to unstable political situations or to currency restrictions, or both. These operations are carried as investments and income therefrom will be included in consolidation when received in the United States. Investments in and advances to non-consolidated foreign divisions and subsidiaries at December 31,1960 aggregated $458,585, whereas the Company's equity in the net assets of such divisions and subsidiaries was $1,004,497. Consolidated earned surplus at December 31, 1960 included $8,828,149, representing the combined undistributed net earnings of consolidated subsidiaries. 2-INVESTMENTS Installment sales contracts and other notes received in connection with sales of various properties since 1952 were secured by either first, second, chattel or real estate leasehold mortgages. These contracts and notes require various periodic payments and their maturities range from October 1, 1961 to July 1, 1976. The required payments receivable for the next five years approximate $2,595,733, 1961; $1,768,207, 1962; $1,804,635, 1963; $1,166,732, 1964, and $1,288,552, 1965. It is' the policy to defer the profit on those sales that qualify as installment sales under Treasury regulations, taking into income that portion of the profits as applies to payments on the installment sales contracts in the year in which such payments are received. At December 31, 1960, $12,078,790 of such profit was deferred, and accordingly, during the next five years as the aforementioned payments are received, there will be included in income (taxable at the then effective long-term capital gains rate) the following: $ 1,696,443, 1961; $1,292,066, 1962; $1,535,640, 1963; $896,851, 1964, and $985,246, 1965. During 1959 the Company entered into a credit agreement with a banking institution providing for a loan of $25,000,000 to be advanced to the Company on or before September 15, 1961 with interest at the rate of 5!4 % per annum and a commitment fee of Vl of 1 % on the undrawn balance. At December 31, 1960 the Company had not drawn any of the funds available, but subsequent thereto drew down $21,000,000, $2,000,000 of which was used to reduce other bank indebtedness and $19,000,000 of which was applied against the purchase price of the Hawaiian Village Hotel in Honolulu, Hawaii. (Reference is made to Note 7.) Under the terms of the credit agreement, fixed quarterly payments on this loan are to be reduced by payments received from installment sales contracts and other notes which have been deposited with the lender for purposes of collection and application of the proceeds under the terms of the credit agreement. 3-FIXED ASSETS A major portion of these assets are pledged to secure mortgages or other long-term debt of the consolidated companies. Furniture, furnishings and equipment owned by the Company in "Statler Hilton Hotels" under lease from an affiliate, Statler Hotels Delaware Corporation, are pledged as additional security under a mortgage of that Company. Fixed assets were carried at cost, or were carried over from predecessor companies together with related depreciation reserves at predecessor's basis, plus additions at cost. With one minor exception, depreciation of fixed assets has been computed on the basis of the straight-line method. 4-FEDERAL TAXES ON INCOME Federal income tax returns of the Company subsequent to 1953 and returns of subsidiaries and predecessor companies for 1954 and subsequent years are either under or subject to examination by the Internal Revenue Service. 5-LONG TERM DEBT The trust indenture securing the 4Vi % fifteen-year convertible debentures of the Company (conversion privileges expired January 2, 1958) requires annual sinking fund payments on January 15th of each year in an amount sufficient to redeem at the principal amount without premium, 3% for each of the years through 1962 and 4 % for each of the years thereafter. The Company has complied with this provision. The Company's 6 % subordinated debentures are entitled to the benefit of an annual sinking fund commencing October 15, 1965. The Company is obligated to pay into the sinking fund on or before October 15th in each year from 1965 to 1969 a sum equal to 2% of the largest principal amount of debentures outstanding on or prior to August 31, 1965, and thereafter annually, an amount equal to l/15th of the principal amount of debentures outstanding on October 15, 1969 after giving effect to redemptions out of the sinking fund payment made for that date. The 4% twenty-five year sinking fund debentures of a subsidiary are entitled to the benefits of an annual sinking fund, beginning July 1, 1962, in an amount sufficient to redeem, at their principal amount, without premium, in each year, 2% of the highest principal amount at any time outstanding. The aggregate annual sinking fund and maturity requirements on the total long-term debt at December 31, 1960 for each of the next five years ending December 31, follows: 1961, $4,174,105; 1962, $2,109,504; 1963, $2,356,068; 1964, $2,532,606; and 1965, $2,560,311. 6-CAPITAL STOCK The 5 % cumulative first preferred series "A" shares are subject to redemption, without premium, out of sinking fund payments, made on or before January 1st in each year in an amount sufficient to