EXHIBIT 12
HOST MARRIOTT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions, except ratio amounts)
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||
Income (loss) from operations before income taxes | $ | (74 | ) | $ | (251 | ) | $ | (67 | ) | $ | 15 | $ | (4 | ) | ||||||
Add (deduct): | ||||||||||||||||||||
Fixed charges | 574 | 606 | 576 | 569 | 539 | |||||||||||||||
Capitalized interest | (3 | ) | (2 | ) | (2 | ) | (8 | ) | (8 | ) | ||||||||||
Amortization of capitalized interest | 6 | 6 | 6 | 7 | 6 | |||||||||||||||
Minority interest in consolidated affiliates | 4 | 5 | 7 | 23 | 72 | |||||||||||||||
Net (gains) losses related to certain 50% or less owned affiliates | 16 | 22 | 9 | (3 | ) | (27 | ) | |||||||||||||
Distributions from equity investments | 6 | 3 | 6 | 9 | 1 | |||||||||||||||
Dividends on preferred stock | (37 | ) | (37 | ) | (37 | ) | (32 | ) | (20 | ) | ||||||||||
Issuance costs of redeemed Class A | (4 | ) | — | — | — | — | ||||||||||||||
Adjusted earnings | $ | 488 | $ | 352 | $ | 498 | $ | 580 | $ | 559 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest on indebtedness and amortization of deferred financing costs | $ | 483 | $ | 488 | $ | 458 | $ | 451 | $ | 432 | ||||||||||
Capitalized interest | 3 | 2 | 2 | 8 | 8 | |||||||||||||||
Dividends on convertible preferred securities of subsidiary trust | — | 32 | 32 | 32 | 32 | |||||||||||||||
Dividends on preferred stock | 37 | 37 | 37 | 32 | 20 | |||||||||||||||
Issuance costs of redeemed Class A | 4 | — | — | — | — | |||||||||||||||
Portion of rents representative of the interest factor | 47 | 47 | 47 | 46 | 47 | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 574 | $ | 606 | $ | 576 | $ | 569 | $ | 539 | ||||||||||
Ratio of earnings to fixed charges and preferred stock dividends | — | — | — | 1.0 | 1.0 | |||||||||||||||
Deficiency of earnings to fixed charges and preferred stock dividends | $ | (86 | ) | $ | (254 | ) | $ | (78 | ) | — | — |