EXHIBIT 12
HOST MARRIOTT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions, except ratio amounts)
2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||||
Income (loss) from operations before income taxes | $ | (237 | ) | $ | (50 | ) | $ | 55 | $ | 26 | $ | 161 | ||||||||
Add (deduct): | ||||||||||||||||||||
Fixed charges | 609 | 580 | 573 | 543 | 510 | |||||||||||||||
Capitalized interest | (2 | ) | (2 | ) | (8 | ) | (8 | ) | (7 | ) | ||||||||||
Amortization of capitalized interest | 6 | 6 | 7 | 6 | 6 | |||||||||||||||
Minority interest in consolidated affiliates | 5 | 7 | 23 | 72 | 82 | |||||||||||||||
Net (gains) losses related to certain 50% or less owned affiliates | 22 | 9 | (3 | ) | (27 | ) | (7 | ) | ||||||||||||
Distributions from equity investments | 3 | 6 | 9 | 1 | 1 | |||||||||||||||
Dividends on preferred stock | (37 | ) | (37 | ) | (32 | ) | (20 | ) | (6 | ) | ||||||||||
Adjusted earnings | $ | 369 | $ | 519 | $ | 624 | $ | 593 | $ | 740 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest on indebtedness and amortization of deferred financing costs | $ | 491 | $ | 462 | $ | 455 | $ | 436 | $ | 415 | ||||||||||
Capitalized interest | 2 | 2 | 8 | 8 | 7 | |||||||||||||||
Dividends on convertible preferred securities of subsidiary trust | 32 | 32 | 32 | 32 | 37 | |||||||||||||||
Dividends on preferred stock | 37 | 37 | 32 | 20 | 6 | |||||||||||||||
Portion of rents representative of the interest Factor | 47 | 47 | 46 | 47 | 45 | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 609 | $ | 580 | $ | 573 | $ | 543 | $ | 510 | ||||||||||
Ratio of earnings to fixed charges and preferred stock dividends | — | — | 1.1 | 1.1 | 1.5 | |||||||||||||||
Deficiency of earnings to fixed charges and preferred stock dividends | $ | (240 | ) | $ | (61 | ) | — | — | — |