EXHIBIT 12
HOST MARRIOTT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions, except ratio amounts)
2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (23 | ) | $ | 66 |
| $ | 63 |
| $ | 181 |
| $ | 175 |
| |||||
Add (deduct): | ||||||||||||||||||||
Fixed charges |
| 582 |
|
| 576 |
|
| 540 |
|
| 525 |
|
| 419 |
| |||||
Capitalized interest |
| (2 | ) |
| (8 | ) |
| (8 | ) |
| (7 | ) |
| (4 | ) | |||||
Amortization of capitalized interest |
| 6 |
|
| 7 |
|
| 6 |
|
| 6 |
|
| 6 |
| |||||
Minority interest in consolidated affiliates |
| 7 |
|
| 23 |
|
| 72 |
|
| 82 |
|
| 52 |
| |||||
Net (gains) losses related to certain 50% or less owned affiliates |
| 9 |
|
| (3 | ) |
| (27 | ) |
| (7 | ) |
| (4 | ) | |||||
Distributions from equity investments |
| 6 |
|
| 9 |
|
| 1 |
|
| 1 |
|
| 2 |
| |||||
Dividends on preferred stock |
| (35 | ) |
| (32 | ) |
| (20 | ) |
| (6 | ) |
| — |
| |||||
Adjusted earnings | $ | 550 |
| $ | 638 |
| $ | 627 |
| $ | 775 |
| $ | 646 |
| |||||
Fixed charges: | ||||||||||||||||||||
Interest on indebtedness and amortization of deferred financing costs | $ | 466 |
| $ | 458 |
| $ | 433 |
| $ | 430 |
| $ | 335 |
| |||||
Capitalized interest |
| 2 |
|
| 8 |
|
| 8 |
|
| 7 |
|
| 4 |
| |||||
Dividends on convertible preferred securities of subsidiary trust |
| 32 |
|
| 32 |
|
| 32 |
|
| 37 |
|
| 37 |
| |||||
Dividends on preferred stock |
| 35 |
|
| 32 |
|
| 20 |
|
| 6 |
|
| — |
| |||||
Portion of rents representative of the interest factor |
| 47 |
|
| 46 |
|
| 47 |
|
| 45 |
|
| 43 |
| |||||
Total fixed charges and preferred stock dividends | $ | 582 |
| $ | 576 |
| $ | 540 |
| $ | 525 |
| $ | 419 |
| |||||
Ratio of earnings to fixed charges and preferred stock dividends |
| — |
|
| 1.1 |
|
| 1.2 |
|
| 1.5 |
|
| 1.5 |
| |||||
Deficiency of earnings to fixed charges and preferred stock dividends | $ | (32 | ) |
| — |
|
| — |
|
| — |
|
| — |
|