Year book of motion pictures (1937)

Investments in subsidiaries operating in foreign territories subject to contingent liabilities reported, investments in capital stocks, at cost plus undistributed surpluses amounting to $961,333.70 less reserves for operating deficits amounting to $836,479.83, $1,516,521.22; advances to subsidiaries, $1,031,781.45; Deduct: Advances from subsidiaries, $1,481,929.26; reserves carried on New York books in respect of certain assets of subsidiaries operating in foreign territories, $344,410.33 721,963.08 Fixed Assets (excluding fully depreciated fixed assets): Studio land, as appraised August 31. 1934, by The American Appraisal Company, $419,125; other land and buildings at cost, $1,495,246.91; machinery, equipment, furniture and fixtures, at cost, $2,053,153.40; theater leaseholds and equipment, at cost, $49,914.35; less: Reserves for depreciation and amortization, $2,026,193.70 1,991,245. 96 Cash in closed banks, less reserve of $10,000 (a liquidating dividend of $10,685.18 was received subsequent to November 2, 1935) 40,576.08 Notes receivable maturing after one year 65,439.99 Investments in affiliated companies, at cost (including investments of $4,817.50 pledged to secure liabilities of a foreign subsidiary) 36,490.20 Merchandise in transit to foreign offices 21,319.62 Deposits on leases, etc 5,515.01 Deferred charges — prepaid rent, taxes, insurance, etc 143,231.74 Trade-marks, trade names and goodwill 137,501.00 Note 1 — The assets which are subject to the lien granted as security for $11,591,569.45 the payment of notes payable in the amount of $750,000.00 are as follows: Unliquidated advances to producers $92,757.32 Productions in progress (including $1,034,376.11 in respect of productions which are subject to a prior lien securing bank loans amounting to $270,000) 2,169,769.71 Productions completed but not released 471,884.27 Released productions, less amortization 443,765.24 Scenarios, continuities and rights unproduced 38,899.42 Liabilities $3,217,075.96 Current Liabilities: Secured notes payable: Banks (see Note 1), $270,000; trade (including secured accounts and accruals) payable in weekly instalments of $11,500, secured by a third mortgage on studio real estate, $448,360.03; others (see Note 1). $750,000; unsecured notes payable (including $29,414.75 other than trade notes), $186,172.10; accounts payable and sundry accruals, $1,153,859.13; reserve for Federal income taxes, $10,291.50, total $2,818,682.76 Long Term Debt — Maturing February 18, 1939 — Secured By: First mortgage on studio real estate and a chattel mortgage on studio equipment, $600,000; second mortgage on studio real estate and a chattel mortgage on studio equipment, $400,000 1,000,000.00 Advance payments to be liquidated by film service 176,386.38 Reserve for contingencies (Federal tax returns for years subsequent to year ending October 29, 1932, are subject to final settlement with the U. S. Treasury Department) 68,445.20 Discount on first preferred stock acquired and held in treasury 8,268.80 Proportion of capital stock and surplus of a subsidiary company applicable to a minority stockholder 1,030.43 Capital (represented by): Capital stock (see note): First preferred 8% cumulative stock — authorized and issued — 30,000 shares of $100 each, $3,000,000; less — 12,000 shares retired, $1,200,000; 18.000 shares, $1,800,000; less — 136 shares in treasury, $13,600; (unpaid dividends from October 1, 1932, to and including October 1, 1935, amount to $428,736), second preferred 7% cumulative stock — authorized — 40,000 shares of $100 each; issued and outstanding — 20,000 shares, $2,000,000; (unpaid dividends from January 1, 1927, to and including October 1, 1935, amount to $1,225,000); common stock — authorized, issued and outstanding — 250,000 shares of $1 each, $250,000; capital surplus arising through the change of the common stock from a no par value stock to the par value of $1 per share, $3,923,950.85; surplus arising through the revaluation of land, $258,125; Less: Operating deficit, $699,719.97 7,518,755.88 Note — The first and second preferred stocks are entitled, in order of preference, to $110 per share plus unpaid and accrued dividends upon redemption or upon dissolution of the company. Contingent Liabilities: In respect of litigation pending — amount indeterminable, as guarantor of theater lease — maximum liability, $12,500; as guarantor of notes payable to bank by a British subsidiary, $245,875; as guarantor of notes payable by the Swiss subsidiary, $10,747.86 ; customers' notes discounted, $51,961.78; under unsettled tax claims pending in foreign countries— amount indeterminable $11,591,569.45 CONSOLIDATED OPERATING DEFICIT FOR 53 WEEKS ENDING NOVEMBER 2, 1935 Operating deficit, October 27, 1934, including $1,070,288.37 of undistributed surpluses of certain subsidiary companies operating in foreign territories but after deducting provisions aggregating $760,142.78 in respect of operating deficits of other subsidiary companies operating in foreign territories $26,772.93 Add — Loss for the fifty-three weeks ending November 2, 1935, (after deducting $203,418.94 of excessive provisions for royalties and income taxes made to October 27, 1935) including $72,926.99 of provisions for operating loss (net) of subsidiary companies operating in foreign territories, per exhibit III 677,185.54 $703,958.47 Deduct — Acquired surplus, less goodwill of a subsidiary company dissolved during current year 4,238.50 Operating deficit, November 2. 1935, including $961,333.70 of undistributed surpluses of certain subsidiary companies operating in foreign territories but after deducting provisions aggregating $836,479.83 in respect of operating deficits of other subsidiary companies operating in foreign territories, carried to balance sheet, Exhibit I . ... $699,719.97 1071