Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Consolidated Portfolio of Hotels by Location

As of December 31, 2013, the hotels in our consolidated portfolio are located in the following countries:

	Hotels
United States		100
Australia		1
Brazil		1
Canada		3
Chile		2
Mexico		1
New Zealand		7
Total		115

Historical Cost and Redemption Values for the Non-Controlling Interests

The table below details the historical cost and redemption values for the non-controlling interests:

	As of December 31,
	2013		2012
OP units outstanding (millions)		9.5		9.9
Market price per Host Inc. common share	$	19.44	$	15.67
Shares issuable upon conversion of one OP unit		1.021494		1.021494
Redemption value (millions)	$	190	$	158
Historical cost (millions)		95		96
Book value (millions) ⁽¹⁾		190		158

(1)	The book value recorded is equal to the greater of the redemption value or the historical cost.

Components of Total Accumulated Other Comprehensive Income in the Balance Sheets

The components of total accumulated other comprehensive income (loss) in the balance sheets are as follows (in millions):

	As of December 31,
	2013			2012
Gain on foreign currency forward contracts	$	—		$	5
Loss on interest rate swap cash flow hedges		(2	)		(4	)
Foreign currency translation		(7	)		11
Total accumulated other comprehensive income (loss)	$	(9	)	$	12

Earnings Per Common Share (Unit)

Host L.P. Earnings (Loss) Per Common Unit

Basic earnings (loss) per common unit is computed by dividing net income (loss) attributable to common unitholders by the weighted average number of common units outstanding. Diluted earnings (loss) per common unit is computed by dividing net income (loss) attributable to common unitholders, as adjusted for potentially dilutive securities, by the weighted average number of common units outstanding plus other potentially dilutive securities. Dilutive securities may include units distributed to Host Inc. to support Host Inc. common shares granted under comprehensive stock plans, other non-controlling interests that have the option to convert their limited partnership interests to common OP units and convertible debt securities. No effect is shown for any securities that are anti-dilutive.

The calculation of basic and diluted earnings (loss) per common unit is shown below (in million, except per unit amounts):

	Year ended December 31,
	2013			2012			2011
Net income (loss)	$	325		$	63		$	(16	)
Less: Net (income) loss attributable to non-controlling interests		(4	)		(1	)		1
Net income (loss) attributable to Host L.P.	$	321		$	62		$	(15	)
Diluted income (loss) attributable to Host L.P.	$	322		$	62		$	(15	)

Basic weighted average shares outstanding		738.4			713.3			688.9
Diluted weighted average shares outstanding ⁽¹⁾		741.9			714.6			688.9

Basic earnings (loss) per common unit	$	.43		$	.09		$	(.02	)
Diluted earnings (loss) per common unit	$	.43		$	.09		$	(.02	)

(1)

There are 29 million, 40 million and 46 million potentially dilutive units for our exchangeable senior debentures and for units distributable to Host Inc. for Host Inc. shares granted under comprehensive stock plans which were not included in the computation of diluted earnings per unit as of December 31, 2013, 2012 and 2011, respectively, because to do so would have been anti-dilutive for the period.

European Joint Venture

Consolidated Portfolio of Hotels by Location

As of December 31, 2013, the Euro JV hotels are located in the following countries:

	Hotels
Belgium		3
France		4
Germany		1
Italy		3
Poland		1
Spain		2
Sweden		1
The Netherlands		2
United Kingdom		2
Total		19

HOST HOTELS & RESORTS, INC.

Earnings Per Common Share (Unit)

Host Inc. Earnings (Loss) Per Common Share

Basic earnings (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of Host Inc. common stock outstanding. Diluted earnings (loss) per common share is computed by dividing net income (loss) attributable to common stockholders, as adjusted for potentially dilutive securities, by the weighted average number of shares of Host Inc. common stock outstanding plus other potentially dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, other non-controlling interests that have the option to convert their limited partnership interests to common OP units and convertible debt securities. No effect is shown for any securities that are anti-dilutive.

The calculation of basic and diluted earnings (loss) per common share is shown below (in million, except per share amounts):

	Year ended December 31,
	2013			2012			2011
Net income (loss)	$	325		$	63		$	(16	)
Less: Net (income) loss attributable to non-controlling interests		(8	)		(2	)		1
Net income (loss) attributable to Host Inc.	$	317		$	61		$	(15	)
Diluted income (loss) attributable to Host Inc.	$	317		$	61		$	(15	)

Basic weighted average shares outstanding		744.4			718.2			693.0
Diluted weighted average shares outstanding ⁽¹⁾		747.9			719.6			693.0

Basic earnings (loss) per common share	$	.43		$	.08		$	(.02	)
Diluted earnings (loss) per common share	$	.42		$	.08		$	(.02	)