utah construction & mining co and subsidiaries notes to consolidated financial statements october 31 1962 the i composition of utah's investment in affiliated companies is shown below equity in undistributed earnings of affiliates — included in earned surplus included in liability for deferred income taxes payable upon distribution of earnings rent advances total 1962 18,677,589 4,477,057 23,154,646 1,630,058 639,200 25,423,904 1961 16,678,797 3,985,057 20,663,854 1,606,778 450,500 22,721,132 2 the company and its consolidated subsidiaries have entered into various agreements for the acquisition of land to be developed and sold among other things these agreements generally provide that the related obligations will mature only as the company chooses to develop individual units or parcels further such obligations amounting to 8,864,919 at october 31 1962 and 6,225,825 at october 31 1961 are secured only by the related land and do not represent claims against other corporate assets 3 the company has agreements with the prudential insurance company of america and with first security bank of utah which provide in part that stockholders equity will not at any time be less than 25,000,000 4 the increase in capital surplus of 1,596,056 in 1962 resulted from the capitalization of the excess of the value assigned to 41,456 shares of capital stock paid as a 2 dividend 40.50 per share over the par value thereof 2.00 per share 5 major construction contracts may extend over a period of years accordingly the company reports income from its construction contracts on a percentage-of-completion basis the company's share of income from joint-venture construction contracts is reported in the same manner based upon reports submitted by the respective joint ventures some of which are unaudited proceeds from claims against owners or price adjustments arising out of construction contracts are recorded in the year such claims or adjustments are resolved these amounted to 102,000 in 1962 and 982,000 in 1961 net of applicable income taxes 6 contingent liabilities include the usual liability of contractors for performance and completion of both company and joint venture contracts in addition the company was contingently liable at october 31 1962 for obligations of certain affiliated companies totaling approximately 2,880,000 the company has entered into a long-term lease agreement for equipment requiring payments of approximately 420,000 annually for a now-remaining period of 11 years 7 the accompanying statement of income includes provisions for depreciation and depletion of 6,597,134 in 1962 and 5,309,193 in 1961 8 the company is defendant to certain pending litigation arising out of uranium operations and out of the 1960 merger with lucky me uranium corporation management and counsel are of the opinion that the company's position in each case is correct and sound and both actions are being vigorously defended accordingly no provision for such litigation has been made in the accompanying financial statements utah construction & mining co and subsidiaries five year comparison consolidated year ended october 31 gross revenue net income before income taxes after income taxes dividends paid cash securities at market value capital stock net increase in shareholders equity common stock shares outstanding number of shareholders utah construction & mining co only working capital shareholders equity net worth book value per share earnings per share long term debt total assets note shares outstanding for the years 1958 and 1959 have been adjusted to give effect to 242,533 shares issued on febru with lucky me uranium corporation earnings and book value per share for all years have been calculated based upon giving effect to the 2 stock dividends paid in 1960 1961 and 1962 s outstanding at the end of 1962 net earnings luons 12