3.	Earnings (Loss) Per Common Share (Unit)

Host Inc. Earnings (Loss) per Common Share

Basic earnings (loss) per common share is computed by dividing net income (loss) available 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) available 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.


	Quarter ended						Year-to-date ended
	June 17, 2011			June 18, 2010			June 17, 2011			June 18, 2010
	(in millions, except per share amounts)

Net income (loss)	$	64		$	20		$	4		$	(64	)
Net income attributable to non-controlling interests		(2	)		(1	)		(2	)		(1	)
Dividends on preferred stock		—			(2	)		—			(4	)
Issuance costs of redeemed preferred stock (a)		—			(4	)		—			(4	)

Earnings (loss) available to common stockholders		62			13			2			(73	)

Diluted earnings (loss) available to common stockholders	$	62		$	13		$	2		$	(73	)


Basic weighted average shares outstanding		685.7			652.5			681.5			650.3
Diluted weighted average shares outstanding (b)		687.1			654.1			683.0			650.3

Basic earnings (loss) per share	$	.09		$	.02		$	—		$	(.11	)
Diluted earnings (loss) per share	$	.09		$	.02		$	—		$	(.11	)

(a)	Represents the original issuance costs associated with the Class E preferred stock, which were redeemed during the second quarter 2010.

(b)	For all periods presented, there were approximately 50 million potentially dilutive shares related to our Exchangeable Senior Debentures, which were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the period.

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

Basic earnings (loss) per common unit is computed by dividing net income available 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) available 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.


	Quarter ended						Year-to-date ended
	June 17, 2011			June 18, 2010			June 17, 2011			June 18, 2010
	(in millions, except per unit amounts)

Net income (loss)	$	64		$	20		$	4		$	(64	)
Net income attributable to non-controlling interests		(1	)		(1	)		(2	)		(2	)
Distributions on preferred units		—			(2	)		—			(4	)
Issuance costs of redeemed preferred OP units (a)		—			(4	)		—			(4	)

Earnings (loss) available to common unitholders		63			13			2			(74	)

Diluted earnings (loss) available to common unitholders	$	63		$	13		$	2		$	(74	)


Basic weighted average units outstanding		682.0			649.5			677.8			647.5
Diluted weighted average units outstanding (b)		683.3			651.1			679.2			647.5

Basic earnings (loss) per unit	$	.09		$	.02		$	—		$	(.11	)
Diluted earnings (loss) per unit	$	.09		$	.02		$	—		$	(.11	)

(a)	Represents the original issuance costs associated with the Class E preferred OP units, which were redeemed during the second quarter 2010.

(b)	For all periods presented, there were approximately 49 million potentially dilutive units related to our Exchangeable Senior Debentures, which were not included in the computation of diluted earnings per unit because to do so would have been anti-dilutive for the period.