EXHIBIT 12
HOST MARRIOTT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions, except ratio amounts)
2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
Income (loss) from operations before income taxes | $ | 162 | $ | (84 | ) | $ | (260 | ) | $ | (78 | ) | $ | 4 | |||||||
Add (deduct): | ||||||||||||||||||||
Fixed charges | 525 | 574 | 606 | 576 | 569 | |||||||||||||||
Capitalized interest | (5 | ) | (3 | ) | (2 | ) | (2 | ) | (8 | ) | ||||||||||
Amortization of capitalized interest | 6 | 6 | 6 | 6 | 7 | |||||||||||||||
Minority interest in consolidated affiliates | 16 | 4 | 5 | 7 | 23 | |||||||||||||||
Net (gains) losses related to certain 50% or less owned affiliates | 1 | 16 | 22 | 9 | (3 | ) | ||||||||||||||
Distributions from equity investments | 2 | 6 | 3 | 6 | 9 | |||||||||||||||
Dividends on preferred stock | (27 | ) | (37 | ) | (37 | ) | (37 | ) | (32 | ) | ||||||||||
Issuance costs of redeemed preferred stock | (4 | ) | (4 | ) | — | — | — | |||||||||||||
Adjusted earnings | $ | 676 | $ | 478 | $ | 343 | $ | 487 | $ | 569 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest on indebtedness and amortization of deferred financing costs | $ | 443 | $ | 483 | $ | 488 | $ | 458 | $ | 451 | ||||||||||
Capitalized interest | 5 | 3 | 2 | 2 | 8 | |||||||||||||||
Dividends on convertible preferred securities of subsidiary trust | — | — | 32 | 32 | 32 | |||||||||||||||
Dividends on preferred stock | 27 | 37 | 37 | 37 | 32 | |||||||||||||||
Issuance costs of redeemed preferred stock | 4 | 4 | — | — | — | |||||||||||||||
Portion of rents representative of the interest factor | 46 | 47 | 47 | 47 | 46 | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 525 | $ | 574 | $ | 606 | $ | 576 | $ | 569 | ||||||||||
Ratio of earnings to fixed charges and preferred stock dividends | 1.3 | — | — | — | 1.0 | |||||||||||||||
Deficiency of earnings to fixed charges and preferred stock dividends | — | $ | (96 | ) | $ | (263 | ) | $ | (89 | ) | — |