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Hilton Hotels, 1961 Annual Report
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Hilton Hotels Corporation. Hilton Hotels, 1961 Annual Report - Image 32. 1961. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. December 2, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/561/show/554.

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. (1961). Hilton Hotels, 1961 Annual Report - Image 32. 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/561/show/554

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, 1961 Annual Report - Image 32, 1961, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed December 2, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/561/show/554.

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, 1961 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1961
Description Hilton Hotels Annual Report for calendar year 1961.
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 32
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_014_032.jpg
Transcript HILTON HOTELS CORPORATION AND CONSOLIDATED SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (1) BASIS OF CONSOLIDATION The consolidated statements include all divisions and subsidiaries (all wholly-owned) of Hilton Hotels Corporation (the Company) and a majority interest of the Company in an affiliated partnership with the exception that the subsidiary, Hilton Hotels International, Inc. 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 is included in consolidation when received in the United States. Investments in and advances to non-consolidated foreign divisions and subsidiaries at December 31,1961 aggregated $187,393., whereas the Company's equity in the net assets of such divisions and subsidiaries was $880,218. Consolidated earned surplus at December 31, 1961 included $9,282,240., representing the combined undistributed net earnings of consolidated subsidiaries. (2) INVESTMENTS Notes received in connection with sales of various properties since 1952 were secured by either first, second or real estate leasehold mortgages. These notes require various periodic payments and their maturities range from September 30, 1963 to July 1, 1976. Required payments receivable for the next five years approximate $440,760., 1962; $904,270., 1963; $266,341., 1964; $386,428., 1965; and $1,625,864., 1966. The profit on those sales that qualify as installment sales under Treasury regulations has been deferred and there will be taken 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, 1961, $3,361,438. 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: $293,229., 1962; $777,672., 1963; $138,872., 1964; $226,561., 1965 and $994,254., 1966. The Company's equity in the 50% owned Hilton-Burns Hotels Company, Inc. (hotel in operation) and its equity in the 50% owned Hilton-Uris, Inc. (hotel under construction) in respect of investments and advances aggregating $6,723,784. and $1,000,000. respectively, amounted to $6,681,114. and $1,000,000. (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 predecessors' basis, plus additions at cost. Depreciation of fixed assets has been computed on the basis of the straight-line method for accounting purposes. For income tax purposes, the Company has elected to compute depreciation on the sum-of-the-digits method with respect to certain additions to fixed assets. Accordingly, the Company has included in the provision for income taxes and in the balance sheet an amount equal to the Federal income tax benefit from the use of this method of accelerated depreciation. (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 A trust indenture securing the 4}/2% fifteen-year convertible debentures of the Company (conversion privileges expired January 2, 1958), maturing January 1, 1970 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 maturing October 15, 1984 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 o debentures outstanding on or prior to August 31, 1965, and thereafter annually, an amount equal to 1/15th 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 maturing July 1, 1983 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, 2% of the highest principal amount at any time outstanding. The annual sinking fund and maturity requirements on total long-term debt for each of the next five years ending December 31, follows: 1962, $2,372,593.; 1963, $2,535,919.; 1964, $4,622,561.; 1965, $2,519,379.; and 1966, $2,564,272. (6) CAPITAL STOCK 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 redeem 2% of the maximum number of shares theretofore issued and outstanding. The Company has complied with this provision. 5M% Series "A" preferred shares are convertible at the option 28