Earnings Per Common Share (Unit) (Tables)

9 Months Ended

Sep. 30, 2014

Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted average number of shares of Host Inc. common stock outstanding. Diluted earnings per common share is computed by dividing net income 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 per common share is shown below (in millions, except per share amounts):


	Quarter ended September 30,					Year-to-date ended September 30,
	2014			2013		2014			2013
Net income	$	145		$	18	$	489		$	199
Less: Net (income) loss attributable to non-controlling interests		(1	)		1		(11	)		(5	)
Net income attributable to Host Inc.	$	144		$	19	$	478		$	194
Diluted income attributable to Host Inc.	$	144		$	19	$	478		$	194

Basic weighted average shares outstanding		755.6			749.0		755.3			740.9
Assuming weighted average shares for conversion of exchangeable senior debentures		—			—		—			3.2
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market		0.8			0.7		0.7			0.8
Diluted weighted average shares outstanding ⁽¹⁾		756.4			749.7		756.0			744.9

Basic earnings per common share	$	.19		$	.03	$	.63		$	.26
Diluted earnings per common share	$	.19		$	.03	$	.63		$	.26

(1)

There were approximately 30 million potentially dilutive shares for both the quarter and year-to-date periods ended September 30, 2014, and approximately 30 million and 29 million potentially dilutive shares for the quarter and year-to-date periods ended September 30, 2013, respectively, related to our exchangeable senior debentures, which shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the period. Net income allocated to non-controlling interests of Host L.P. has been excluded from the numerator and common OP units in Host L.P. have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts would have no impact.

HOST HOTELS & RESORTS L.P.

Earnings Per Common Share (Unit)

Basic earnings per common unit is computed by dividing net income attributable to common unitholders by the weighted average number of common units outstanding. Diluted earnings per common unit is computed by dividing net income 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 issued 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 per unit is shown below (in millions, except per unit amounts):


	Quarter ended September 30,				Year-to-date ended September 30,
	2014		2013		2014			2013
Net income	$	145	$	18	$	489		$	199
Less: Net (income) loss attributable to non-controlling interests		1		1		(4	)		(2	)
Net income attributable to Host L.P.	$	146	$	19	$	485		$	197
Diluted income attributable to Host L.P.	$	146	$	19	$	485		$	197

Basic weighted average units outstanding		749.1		743.0		748.8			735.1
Assuming weighted average units for conversion of exchangeable senior debentures		—		—		—			3.1
Assuming distribution of common units granted under the comprehensive stock plans, less units assumed purchased at market		0.8		0.6		0.7			0.8
Diluted weighted average units outstanding⁽¹⁾		749.9		743.6		749.5			739.0

Basic earnings per common unit	$	.19	$	.03	$	.65		$	.27
Diluted earnings per common unit	$	.19	$	.03	$	.65		$	.27

(1)

There were approximately 30 million potentially dilutive units for both the quarter and year-to-date periods ended September 30, 2014, respectively, and approximately 29 million potentially dilutive units for both the quarter and year-to-date periods ended September 30, 2013, related to our exchangeable senior debentures, which units were not included in the computation of diluted earnings per unit because to do so would have been anti-dilutive for the period.