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Equity of Host Inc. and Capital of Host L.P.
 6 Months Ended
Jun. 30, 2019
Equity [Abstract]  
Equity of Host Inc. and Capital of Host L.P.

 

8.

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

 

 

Redeemable, non-controlling interests

 

Balance, December 31, 2018

 

$

7

 

 

$

8,156

 

 

$

(59

)

 

$

(610

)

 

$

72

 

 

$

128

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

186

 

 

 

1

 

 

 

2

 

Issuance of common stock for

     comprehensive stock plans, net

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Dividends declared on common stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(149

)

 

 

—

 

 

 

—

 

Distributions to non-controlling

     interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(67

)

 

 

(2

)

Changes in ownership and other

 

 

—

 

 

 

(16

)

 

 

—

 

 

 

—

 

 

 

1

 

 

 

19

 

Balance, March 31, 2019

 

$

7

 

 

$

8,138

 

 

$

(59

)

 

$

(573

)

 

$

7

 

 

$

147

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

286

 

 

 

1

 

 

 

3

 

Issuance of common stock for

     comprehensive stock plans, net

 

 

—

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Repurchase of common stock

 

 

—

 

 

 

(200

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Dividends declared on common stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(145

)

 

 

—

 

 

 

—

 

Distributions to non-controlling

     interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

Changes in ownership and other

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(8

)

Other comprehensive income

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

Balance, June 30, 2019

 

$

7

 

 

$

7,948

 

 

$

(56

)

 

$

(432

)

 

$

7

 

 

$

141

 

 

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Retained Earnings / (Deficit)

 

 

Non-redeemable, non-controlling interests

 

 

Redeemable, non-controlling interests

 

Balance, December 31, 2017

 

$

7

 

 

$

8,097

 

 

$

(60

)

 

$

(1,071

)

 

$

29

 

 

$

167

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

253

 

 

 

—

 

 

 

3

 

Issuance of common stock for

     comprehensive stock plans, net

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Dividends declared on common stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(148

)

 

 

—

 

 

 

—

 

Distributions to non-controlling

     interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Changes in ownership and other

 

 

—

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12

)

Other comprehensive income

 

 

—

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

Cumulative effect of accounting change

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

—

 

Balance, March 31, 2018

 

$

7

 

 

$

8,109

 

 

$

(55

)

 

$

(962

)

 

$

29

 

 

$

156

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

209

 

 

 

—

 

 

 

2

 

Issuance of common stock for

     comprehensive stock plans, net

 

 

—

 

 

 

7

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Dividends declared on common stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(148

)

 

 

—

 

 

 

—

 

Distributions to non-controlling

     interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(1

)

Changes in ownership and other

 

 

—

 

 

 

(16

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16

 

Other comprehensive loss

 

 

—

 

 

 

—

 

 

 

(13

)

 

 

—

 

 

 

—

 

 

 

—

 

Balance, June 30, 2018

 

$

7

 

 

$

8,100

 

 

$

(68

)

 

$

(901

)

 

$

28

 

 

$

173

 

 

Capital of Host L.P.

As of June 30, 2019, 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.

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

 

 

Limited partnership interests of third parties

 

Balance, December 31, 2018

 

$

1

 

 

$

7,552

 

 

$

(59

)

 

$

72

 

 

$

128

 

Net income

 

 

—

 

 

 

186

 

 

 

—

 

 

 

1

 

 

 

2

 

Issuance of common OP units to Host Inc.

     for comprehensive stock plans, net

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

Distributions declared on common OP units

 

 

—

 

 

 

(149

)

 

 

—

 

 

 

—

 

 

 

(2

)

Distributions to non-controlling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(67

)

 

 

—

 

Changes in ownership and other

 

 

—

 

 

 

(16

)

 

 

—

 

 

 

1

 

 

 

19

 

Balance, March 31, 2019

 

$

1

 

 

$

7,571

 

 

$

(59

)

 

$

7

 

 

$

147

 

Net income

 

 

—

 

 

 

286

 

 

 

—

 

 

 

1

 

 

 

3

 

Issuance of common OP units to Host Inc.

     for comprehensive stock plans, net

 

 

—

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

—

 

Repurchase of common OP units

 

 

—

 

 

 

(200

)

 

 

—

 

 

 

—

 

 

 

—

 

Distributions declared on common OP units

 

 

—

 

 

 

(145

)

 

 

—

 

 

 

—

 

 

 

—

 

Distributions to non-controlling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

Changes in ownership and other

 

 

—

 

 

 

6

 

 

 

—

 

 

 

(1

)

 

 

(8

)

Other comprehensive income

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

Balance, June 30, 2019

 

$

1

 

 

$

7,522

 

 

$

(56

)

 

$

7

 

 

$

141

 

 

 

 

 

General Partner

 

 

Limited Partner

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Non-controlling interests

 

 

Limited partnership interests of third parties

 

Balance, December 31, 2017

 

$

1

 

 

$

7,032

 

 

$

(60

)

 

$

29

 

 

$

167

 

Net income

 

 

—

 

 

 

253

 

 

 

—

 

 

 

—

 

 

 

3

 

Issuance of common OP units to Host Inc. for

     comprehensive stock plans, net

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

Distributions declared on common OP units

 

 

—

 

 

 

(148

)

 

 

—

 

 

 

—

 

 

 

(2

)

Changes in ownership and other

 

 

—

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

(12

)

Other comprehensive income

 

 

—

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

—

 

Cumulative effect of accounting change

 

 

—

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

—

 

Balance, March 31, 2018

 

$

1

 

 

$

7,153

 

 

$

(55

)

 

$

29

 

 

$

156

 

Net income

 

 

—

 

 

 

209

 

 

 

—

 

 

 

—

 

 

 

2

 

Issuance of common OP units to Host Inc. for

     comprehensive stock plans, net

 

 

—

 

 

 

7

 

 

 

—

 

 

 

—

 

 

 

—

 

Distributions declared on common OP units

 

 

—

 

 

 

(148

)

 

 

—

 

 

 

—

 

 

 

(1

)

Distributions to non-controlling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

—

 

Changes in ownership and other

 

 

—

 

 

 

(16

)

 

 

—

 

 

 

—

 

 

 

16

 

Other comprehensive loss

 

 

—

 

 

 

—

 

 

 

(13

)

 

 

—

 

 

 

—

 

Balance, June 30, 2018

 

$

1

 

 

$

7,205

 

 

$

(68

)

 

$

28

 

 

$

173

 

 

Share Repurchases

During the second quarter of 2019, we repurchased 10.9 million shares at an average price of $18.32 per share, exclusive of commissions, through our common share repurchase program for a total of $200 million. On August 5, 2019, Host Inc.’s Board of Directors authorized an increase in its share repurchase program from $500 million to $1 billion. Subsequent to quarter end, the Company purchased an additional 3.7 million shares at an average price of $16.76 per share, pursuant to the Company’s trading plan designed to comply with Rule 10b5-1 under the Securities Exchange Act. In total,

we have repurchased 14.6 million shares at an average price of $17.92 for a total of $262 million. After taking into account these events, and the second quarter repurchases, it leaves $738 million available for repurchase.

Dividends/Distributions

On June 14, 2019, Host Inc.’s Board of Directors declared a regular quarterly cash dividend of $0.20 per share on its common stock. The dividend was paid on July 15, 2019 to stockholders of record as of June 28, 2019. Accordingly, Host L.P. made a distribution of $0.2042988 per unit on its common OP units based on the current conversion ratio.