
3.	Earnings Per Common Share (Unit)

Basic earnings per common share (unit) is computed by dividing net income attributable to common stockholders (unitholders) by the weighted average number of shares of Host Inc. common stock or Host L.P. common units outstanding. Diluted earnings per common share (unit) is computed by dividing net income attributable to common stockholders (unitholders), as adjusted for potentially dilutive securities, by the weighted average number of shares of Host Inc. common stock or Host L.P. common units outstanding plus other potentially dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans or the common OP units distributed to Host Inc. to support such shares granted, and other non-controlling interests that have the option to convert their limited partnership interests to common OP units. No effect is shown for any securities that are anti-dilutive. We have 8.3 million common OP units which are convertible into 8.5 million common shares which are not included in Host Inc.’s calculation of earnings per share as their effect is not dilutive. The calculation of Host Inc. basic and diluted earnings per common share is shown below (in millions, except per share amounts):

	Quarter ended June 30,						Year-to-date ended June 30,
	2017			2016			2017			2016
Net income	$	212		$	351		$	373		$	535
Less: Net income attributable to non-controlling interests		(2	)		(4	)		(5	)		(6	)
Net income attributable to Host Inc.	$	210		$	347		$	368		$	529

Basic weighted average shares outstanding		738.6			744.0			738.3			746.8
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market		0.2			0.3			0.2			0.3
Diluted weighted average shares outstanding		738.8			744.3			738.5			747.1

Basic earnings per common share	$	.28		$	.47		$	.50		$	.71
Diluted earnings per common share	$	.28		$	.47		$	.50		$	.71

The calculation of Host L.P. basic and diluted earnings per unit is shown below (in millions, except per unit amounts):

	Quarter ended June 30,				Year-to-date ended June 30,
	2017		2016		2017			2016
Net income	$	212	$	351	$	373		$	535
Less: Net (income) loss attributable to non- controlling interests		—		1		(1	)		1
Net income attributable to Host L.P.	$	212	$	352	$	372		$	536

Basic weighted average units outstanding		731.5		737.4		731.2			740.2
Assuming distribution of common units to support shares granted under the comprehensive stock plans, less shares assumed purchased at market		0.1		0.3		0.2			0.3
Diluted weighted average units outstanding		731.6		737.7		731.4			740.5

Basic earnings per common unit	$	.29	$	.48	$	.51		$	.72
Diluted earnings per common unit	$	.29	$	.48	$	.51		$	.72