Equity of Host Inc. and Capital of Host L.P.

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Equity of Host Inc. and Capital of Host L.P.

7.	Equity of Host Inc. and Capital of Host L.P.
	Equity of Host Inc.

The components of the Equity of Host Inc. are as follows (in millions):

	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings / (Deficit)			Non-redeemable, non-controlling interests			Total equity			Redeemable, non-controlling interests
Balance, December 31, 2019	$	7	$	7,675		$	(56	)	$	(307	)	$	6		$	7,325		$	142
Net loss		—		—			—			(668	)		—			(668	)		(7	)
Issuance of common stock for      comprehensive stock plans,      net		—		7			—			—			—			7			—
Repurchase of common stock		—		(147	)		—			—			—			(147	)		—
Dividends declared on common      stock		—		—			—			(141	)		—			(141	)		—
Distributions to non-controlling      interests		—		—			—			—			—			—			(2	)
Changes in ownership and other		—		54			—			1			(1	)		54			(53	)
Other comprehensive loss		—		—			(23	)		—			—			(23	)		—
Balance, September 30, 2020	$	7	$	7,589		$	(79	)	$	(1,115	)	$	5		$	6,407		$	80

	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings / (Deficit)			Non-redeemable, non-controlling interests		Total equity			Redeemable, non-controlling interests
Balance, June 30, 2020	$	7	$	7,586		$	(74	)	$	(802	)	$	5	$	6,722		$	81
Net loss		—		—			—			(313	)		—		(313	)		(3	)
Issuance of common stock for      comprehensive stock plans, net		—		6			—			—			—		6			—
Changes in ownership and other		—		(3	)		—						—		(3	)		2
Other comprehensive loss		—		—			(5	)		—			—		(5	)		—
Balance, September 30, 2020	$	7	$	7,589		$	(79	)	$	(1,115	)	$	5	$	6,407		$	80

	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings / (Deficit)			Non-redeemable, non-controlling interests			Total equity			Redeemable, non-controlling interests
Balance, December 31, 2018	$	7	$	8,156		$	(59	)	$	(610	)	$	72		$	7,566		$	128
Net income		—		—			—			840			2			842			9
Issuance of common stock for      comprehensive stock plans,      net		—		6			—			—			—			6			—
Repurchase of common stock		—		(400	)		—			—			—			(400	)		—
Dividends declared on common      stock		—		—			—			(438	)		—			(438	)		—
Distributions to non-controlling      interests		—		—			—			—			(68	)		(68	)		(5	)
Changes in ownership and other		—		—			—			—			—			—			1
Other comprehensive loss		—		—			(3	)		—			—			(3	)		—
Balance, September 30, 2019	$	7	$	7,762		$	(62	)	$	(208	)	$	6		$	7,505		$	133

	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings / (Deficit)			Non-redeemable, non-controlling interests			Total equity			Redeemable, non-controlling interests
Balance, June 30, 2019	$	7	$	7,948		$	(56	)	$	(432	)	$	7		$	7,474		$	141
Net income		—		—			—			368			—			368			4
Issuance of common stock for      comprehensive stock plans,      net		—		4			—			—			—			4			—
Repurchase of common stock		—		(200	)		—			—			—			(200	)		—
Dividends declared on common      stock		—		—			—			(144	)		—			(144	)		—
Distributions to non-controlling      interests		—		—			—			—			(1	)		(1	)		(2	)
Changes in ownership and other		—		10			—			—			—			10			(10	)
Other comprehensive loss		—		—			(6	)		—			—			(6	)		—
Balance, September 30, 2019	$	7	$	7,762		$	(62	)	$	(208	)	$	6		$	7,505		$	133

Capital of Host L.P.

As of September 30, 2020, Host Inc. is the owner of approximately 99% of Host L.P.’s common OP units. The remaining common OP units are owned by unaffiliated limited partners. Each common OP unit may be redeemed for cash or, at the election of Host Inc., Host Inc. common stock, based on the conversion ratio of 1.021494 shares of Host Inc. common stock for each common OP unit. During the period beginning July 1, 2020 until the required financial statement reporting date for the third quarter of 2021 (such period, the “Covenant Relief Period”), all redemptions must be made with Host Inc. common stock.

In exchange for any shares issued by Host Inc., Host L.P. will issue common OP units to Host Inc. based on the applicable conversion ratio. Additionally, funds used by Host Inc. to pay dividends on its common stock are provided by distributions from Host L.P.

The components of the Capital of Host L.P. are as follows (in millions):

	General Partner		Limited Partner			Accumulated Other Comprehensive Income (Loss)			Non-controlling interests			Total capital			Limited partnership interests of third parties
Balance, December 31, 2019	$	1	$	7,374		$	(56	)	$	6		$	7,325		$	142
Net loss		—		(668	)		—			—			(668	)		(7	)
Issuance of common OP units to Host      Inc. for comprehensive stock      plans, net		—		7			—			—			7			—
Repurchase of common OP units		—		(147	)		—			—			(147	)		—
Distributions declared on common      OP units		—		(141	)		—			—			(141	)		(2	)
Changes in ownership and other		—		55			—			(1	)		54			(53	)
Other comprehensive loss		—		—			(23	)		—			(23	)		—
Balance, September 30, 2020	$	1	$	6,480		$	(79	)	$	5		$	6,407		$	80

	General Partner		Limited Partner			Accumulated Other Comprehensive Income (Loss)			Non-controlling interests		Total capital			Limited partnership interests of third parties
Balance, June 30, 2020	$	1	$	6,790		$	(74	)	$	5	$	6,722		$	81
Net loss		—		(313	)		—			—		(313	)		(3	)
Issuance of common OP units to Host      Inc. for comprehensive stock      plans, net		—		6			—			—		6			—
Changes in ownership and other		—		(3	)		—			—		(3	)		2
Other comprehensive loss		—		—			(5	)		—		(5	)		—
Balance, September 30, 2020	$	1	$	6,480		$	(79	)	$	5	$	6,407		$	80

	General Partner		Limited Partner			Accumulated Other Comprehensive Income (Loss)			Non-controlling interests			Total capital			Limited partnership interests of third parties
Balance, December 31, 2018	$	1	$	7,552		$	(59	)	$	72		$	7,566		$	128
Net income		—		840			—			2			842			9
Issuance of common OP units to Host      Inc. for comprehensive stock      plans, net		—		6			—			—			6			—
Repurchase of common OP units		—		(400	)		—			—			(400	)		—
Distributions declared on common OP units		—		(438	)		—			—			(438	)		(5	)
Distributions to non-controlling      interests		—		—			—			(68	)		(68	)		—
Changes in ownership and other		—		—			—			—			—			1
Other comprehensive loss		—		—			(3	)		—			(3	)		—
Balance, September 30, 2019	$	1	$	7,560		$	(62	)	$	6		$	7,505		$	133

	General Partner		Limited Partner			Accumulated Other Comprehensive Income (Loss)			Non-controlling interests			Total capital			Limited partnership interests of third parties
Balance, June 30, 2019	$	1	$	7,522		$	(56	)	$	7		$	7,474		$	141
Net income		—		368			—			—			368			4
Issuance of common OP units to Host      Inc. for comprehensive stock      plans, net		—		4			—			—			4			—
Repurchase of common OP units		—		(200	)		—			—			(200	)		—
Distributions declared on common      OP units		—		(144	)		—			—			(144	)		—
Distributions to non-controlling      interests		—		—			—			(1	)		(1	)		(2	)
Changes in ownership and other		—		10			—			—			10			(10	)
Other comprehensive loss		—		—			(6	)		—			(6	)		—
Balance, September 30, 2019	$	1	$	7,560		$	(62	)	$	6		$	7,505		$	133

Share Repurchases

As of September 30, 2020, we have $371 million available for repurchase under our common share repurchase program. In accordance with the terms of our credit facility waiver, there were no share repurchases during the third quarter of 2020.

Dividends/Distributions

We suspended our regular quarterly common cash dividend, commencing with the second quarter dividend that would have been paid in July 2020.