EXHIBIT 12.1
HOST MARRIOTT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions, except ratio amounts)
Year-to-date ended | ||||||||
June 18, 2004 | June 20, 2003 | |||||||
Income (loss) from continuing operations before income taxes | $ | (28 | ) | $ | (55 | ) | ||
Add (deduct): | ||||||||
Fixed charges | 290 | 271 | ||||||
Capitalized interest | (2 | ) | (1 | ) | ||||
Amortization of capitalized interest | 3 | 3 | ||||||
Minority interest in consolidated affiliates | 2 | (2 | ) | |||||
Net (gains) losses related to certain 50% or less owned affiliates | 8 | 9 | ||||||
Distributions from equity investments | 1 | 3 | ||||||
Dividends on preferred stock | (19 | ) | (18 | ) | ||||
Adjusted earnings | $ | 255 | $ | 210 | ||||
Fixed charges: | ||||||||
Interest on indebtedness and amortization of deferred financing costs | $ | 248 | $ | 216 | ||||
Capitalized interest | 2 | 1 | ||||||
Dividends on convertible preferred securities of subsidiary trust | — | 15 | ||||||
Dividends on preferred stock | 19 | 18 | ||||||
Portion of rents representative of the interest factor | 21 | 21 | ||||||
Total fixed charges and preferred stock dividends | $ | 290 | $ | 271 | ||||
Deficiency of earnings to fixed charges and preferred stock dividends(1) | $ | (35 | ) | $ | (61 | ) | ||
(1) | For year-to-date June 18, 2004 and June 20, 2003, deficiency of earnings to fixed charges and preferred stock dividends includes depreciation expense of $165 million for both periods, respectively. |
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