UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the quarterly period ended September 30, 2016
OR
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
Commission File Number: 001-14625 (Host Hotels & Resorts, Inc.)
0-25087 (Host Hotels & Resorts, L.P.)
HOST HOTELS & RESORTS, INC.
HOST HOTELS & RESORTS, L.P.
(Exact name of registrant as specified in its charter)
|
Maryland (Host Hotels & Resorts, Inc.) Delaware (Host Hotels & Resorts, L.P.) (State or Other Jurisdiction of Incorporation or Organization) |
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53-008595 52-2095412 (I.R.S. Employer Identification No.) |
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6903 Rockledge Drive, Suite 1500 Bethesda, Maryland (Address of Principal Executive Offices) |
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20817 (Zip Code) |
(240) 744-1000
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Host Hotels & Resorts, Inc. |
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Yes ☑ |
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No ☐ |
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Host Hotels & Resorts, L.P. |
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Yes ☑ |
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No ☐ |
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Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
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Host Hotels & Resorts, Inc. |
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Yes ☑ |
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No ☐ |
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Host Hotels & Resorts, L.P. |
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Yes ☑ |
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No ☐ |
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
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Host Hotels & Resorts, Inc. |
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Large accelerated filer ☑ |
Accelerated filer ☐ |
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Non-accelerated filer (Do not check if a smaller reporting company) ☐ |
Smaller reporting company ☐ |
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Host Hotels & Resorts, L.P. |
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Large accelerated filer ☐ |
Accelerated filer ☐ |
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Non-accelerated filer (Do not check if a smaller reporting company) ☑ |
Smaller reporting company ☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
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Host Hotels & Resorts, Inc. |
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Yes ☐ |
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No ☑ |
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Host Hotels & Resorts, L.P. |
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Yes ☐ |
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No ☑ |
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As of October 31, 2016 there were 739,865,175 shares of Host Hotels & Resorts, Inc.’s common stock, $.01 par value per share, outstanding.
This report combines the quarterly reports on Form 10-Q of Host Hotels & Resorts, Inc. and Host Hotels & Resorts, L.P. Unless stated otherwise or the context requires otherwise, references to “Host Inc.” mean Host Hotels & Resorts, Inc., a Maryland corporation, and references to “Host L.P.” mean Host Hotels & Resorts, L.P., a Delaware limited partnership, and its consolidated subsidiaries, in cases where it is important to distinguish between Host Inc. and Host L.P. We use the terms “we” or “our” or “the company” to refer to Host Inc. and Host L.P. together, unless the context indicates otherwise.
Host Inc. operates as a self-managed and self-administered real estate investment trust (“REIT”). Host Inc. owns properties and conducts operations through Host L.P., of which Host Inc. is the sole general partner and of which it holds approximately 99% of the partnership interests (“OP units”). The remaining OP units are owned by various unaffiliated limited partners. As the sole general partner of Host L.P., Host Inc. has the exclusive and complete responsibility for Host L.P.’s day-to-day management and control. Management operates Host Inc. and Host L.P. as one enterprise. The management of Host Inc. consists of the same persons who direct the management of Host L.P. As general partner with control of Host L.P., Host Inc. consolidates Host L.P. for financial reporting purposes, and Host Inc. does not have significant assets other than its investment in Host L.P. Therefore, the assets and liabilities of Host Inc. and Host L.P. are substantially the same on their respective condensed consolidated financial statements and the disclosures of Host Inc. and Host L.P. also are substantially similar. For these reasons, we believe that the combination into a single report of the quarterly reports on Form 10-Q of Host Inc. and Host L.P. results in benefits to management and investors.
The substantive difference between Host Inc.’s and Host L.P.’s filings is the fact that Host Inc. is a REIT with public stock, while Host L.P. is a partnership with no publicly traded equity. In the condensed consolidated financial statements, this difference primarily is reflected in the equity (or partners’ capital for Host L.P.) section of the consolidated balance sheets and in the consolidated statements of equity (or partners’ capital for Host L.P.). Apart from the different equity treatment, the condensed consolidated financial statements of Host Inc. and Host L.P. nearly are identical.
This combined Form 10-Q for Host Inc. and Host L.P. includes, for each entity, separate interim financial statements (but combined footnotes), separate reports on disclosure controls and procedures and internal control over financial reporting and separate CEO/CFO certifications. In addition, with respect to any other financial and non-financial disclosure items required by Form 10-Q, any material differences between Host Inc. and Host L.P. are discussed separately herein. For a more detailed discussion of the substantive differences between Host Inc. and Host L.P. and why we believe the combined filing results in benefits to investors, see the discussion in the combined Annual Report on Form 10-K for the year ended December 31, 2015 under the heading “Explanatory Note.”
i
HOST HOTELS & RESORTS, INC. AND HOST HOTELS & RESORTS, L.P.
INDEX
PART I. FINANCIAL INFORMATION
ii
HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2016 and December 31, 2015
(in millions, except share and per share amounts)
|
|
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September 30, 2016 |
|
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December 31, 2015 |
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||
|
|
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(unaudited) |
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|
|
|
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ASSETS |
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|||||||
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Property and equipment, net |
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$ |
10,379 |
|
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$ |
10,583 |
|
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Assets held for sale |
|
|
5 |
|
|
|
55 |
|
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Due from managers |
|
|
106 |
|
|
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56 |
|
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Advances to and investments in affiliates |
|
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307 |
|
|
|
324 |
|
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Furniture, fixtures and equipment replacement fund |
|
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182 |
|
|
|
141 |
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Other |
|
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221 |
|
|
|
261 |
|
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Restricted cash |
|
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2 |
|
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15 |
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Cash and cash equivalents |
|
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340 |
|
|
|
221 |
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Total assets |
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$ |
11,542 |
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$ |
11,656 |
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|
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LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY |
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Debt |
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|
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Senior notes |
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$ |
2,379 |
|
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$ |
2,376 |
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Credit facility, including term loans of $997 million and $996 million, respectively |
|
|
1,306 |
|
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1,291 |
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Mortgage debt |
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|
67 |
|
|
|
200 |
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Total debt |
|
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3,752 |
|
|
|
3,867 |
|
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Accounts payable and accrued expenses |
|
|
242 |
|
|
|
243 |
|
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Other |
|
|
280 |
|
|
|
299 |
|
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Total liabilities |
|
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4,274 |
|
|
|
4,409 |
|
|
|
|
|
|
|
|
|
|
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Non-controlling interests - Host Hotels & Resorts, L.P. |
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138 |
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143 |
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Host Hotels & Resorts, Inc. stockholders’ equity: |
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Common stock, par value $.01, 1,050 million shares authorized, 738.1 million shares and 750.3 million shares issued and outstanding, respectively |
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7 |
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|
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8 |
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Additional paid-in capital |
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8,111 |
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8,302 |
|
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Accumulated other comprehensive loss |
|
|
(79 |
) |
|
|
(107 |
) |
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Deficit |
|
|
(948 |
) |
|
|
(1,139 |
) |
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Total equity of Host Hotels & Resorts, Inc. stockholders |
|
|
7,091 |
|
|
|
7,064 |
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Non-controlling interests—other consolidated partnerships |
|
|
39 |
|
|
|
40 |
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Total equity |
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7,130 |
|
|
|
7,104 |
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Total liabilities, non-controlling interests and equity |
|
$ |
11,542 |
|
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$ |
11,656 |
|
See notes to condensed consolidated statements.
1
HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter and Year-to-date ended September 30, 2016 and 2015
(unaudited, in millions, except per share amounts)
|
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Quarter ended September 30, |
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Year-to-date ended September 30, |
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||||||||||
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2016 |
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2015 |
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2016 |
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2015 |
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||||
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REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Rooms |
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$ |
879 |
|
|
$ |
870 |
|
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$ |
2,655 |
|
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$ |
2,625 |
|
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Food and beverage |
|
|
336 |
|
|
|
337 |
|
|
|
1,183 |
|
|
|
1,160 |
|
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Other |
|
|
80 |
|
|
|
76 |
|
|
|
255 |
|
|
|
239 |
|
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Total revenues |
|
|
1,295 |
|
|
|
1,283 |
|
|
|
4,093 |
|
|
|
4,024 |
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EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Rooms |
|
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225 |
|
|
|
228 |
|
|
|
674 |
|
|
|
681 |
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Food and beverage |
|
|
257 |
|
|
|
258 |
|
|
|
830 |
|
|
|
830 |
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Other departmental and support expenses |
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321 |
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|
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322 |
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|
|
981 |
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|
|
973 |
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Management fees |
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|
54 |
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|
|
51 |
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|
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177 |
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|
|
171 |
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Other property-level expenses |
|
|
96 |
|
|
|
97 |
|
|
|
289 |
|
|
|
289 |
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Depreciation and amortization |
|
|
182 |
|
|
|
177 |
|
|
|
541 |
|
|
|
528 |
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Corporate and other expenses |
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|
28 |
|
|
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21 |
|
|
|
82 |
|
|
|
68 |
|
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Gain on insurance and business interruption settlements |
|
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(12 |
) |
|
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(4 |
) |
|
|
(15 |
) |
|
|
(4 |
) |
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Total operating costs and expenses |
|
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1,151 |
|
|
|
1,150 |
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|
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3,559 |
|
|
|
3,536 |
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OPERATING PROFIT |
|
|
144 |
|
|
|
133 |
|
|
|
534 |
|
|
|
488 |
|
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Interest income |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
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Interest expense |
|
|
(38 |
) |
|
|
(46 |
) |
|
|
(116 |
) |
|
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(167 |
) |
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Gain on sale of assets |
|
|
14 |
|
|
|
5 |
|
|
|
245 |
|
|
|
62 |
|
|
Gain (loss) on foreign currency transactions and derivatives |
|
|
(1 |
) |
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|
(1 |
) |
|
|
1 |
|
|
|
(3 |
) |
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Equity in earnings of affiliates |
|
|
8 |
|
|
|
5 |
|
|
|
19 |
|
|
|
31 |
|
|
INCOME BEFORE INCOME TAXES |
|
|
127 |
|
|
|
96 |
|
|
|
685 |
|
|
|
413 |
|
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Provision for income taxes |
|
|
(19 |
) |
|
|
(9 |
) |
|
|
(42 |
) |
|
|
(13 |
) |
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NET INCOME |
|
|
108 |
|
|
|
87 |
|
|
|
643 |
|
|
|
400 |
|
|
Less: Net income attributable to non-controlling interests |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(5 |
) |
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NET INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, INC. |
|
$ |
107 |
|
|
$ |
85 |
|
|
$ |
636 |
|
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$ |
395 |
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Basic earnings per common share |
|
$ |
.14 |
|
|
$ |
.11 |
|
|
$ |
.85 |
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|
$ |
.53 |
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Diluted earnings per common share |
|
$ |
.14 |
|
|
$ |
.11 |
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$ |
.85 |
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$ |
.53 |
|
See notes to condensed consolidated statements.
2
HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Quarter and Year-to-date ended September 30, 2016 and 2015
(unaudited, in millions)
|
|
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Quarter ended September 30, |
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Year-to-date ended September 30, |
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||||||||||
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2016 |
|
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2015 |
|
|
2016 |
|
|
2015 |
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||||
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NET INCOME |
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$ |
108 |
|
|
$ |
87 |
|
|
$ |
643 |
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$ |
400 |
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OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Foreign currency translation and other comprehensive income (loss) of unconsolidated affiliates |
|
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(1 |
) |
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(27 |
) |
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13 |
|
|
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(71 |
) |
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Change in fair value of derivative instruments |
|
|
— |
|
|
|
(8 |
) |
|
|
(2 |
) |
|
|
7 |
|
|
Amounts reclassified from other comprehensive income (loss) |
|
|
(7 |
) |
|
|
— |
|
|
|
17 |
|
|
|
(5 |
) |
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OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX |
|
|
(8 |
) |
|
|
(35 |
) |
|
|
28 |
|
|
|
(69 |
) |
|
COMPREHENSIVE INCOME |
|
|
100 |
|
|
|
52 |
|
|
|
671 |
|
|
|
331 |
|
|
Less: Comprehensive income attributable to non-controlling interests |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(5 |
) |
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COMPREHENSIVE INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, INC. |
|
$ |
99 |
|
|
$ |
50 |
|
|
$ |
664 |
|
|
$ |
326 |
|
See notes to condensed consolidated statements.
3
HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Year-to-date ended September 30, 2016 and 2015
(unaudited, in millions)
|
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|
Year-to-date ended September 30, |
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2016 |
|
|
2015 |
|
||
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OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
643 |
|
|
$ |
400 |
|
|
Adjustments to reconcile to cash provided by operations: |
|
|
|
|
|
|
|
|
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Depreciation and amortization |
|
|
541 |
|
|
|
528 |
|
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Amortization of finance costs, discounts and premiums, net |
|
|
4 |
|
|
|
19 |
|
|
Non-cash loss on extinguishment of debt |
|
|
— |
|
|
|
6 |
|
|
Stock compensation expense |
|
|
8 |
|
|
|
9 |
|
|
Deferred income taxes |
|
|
29 |
|
|
|
4 |
|
|
Gain on sale of assets |
|
|
(245 |
) |
|
|
(62 |
) |
|
(Gain) loss on foreign currency transactions and derivatives |
|
|
(1 |
) |
|
|
3 |
|
|
Gain on property insurance settlement |
|
|
(1 |
) |
|
|
(4 |
) |
|
Equity in earnings of affiliates |
|
|
(19 |
) |
|
|
(31 |
) |
|
Change in due from managers |
|
|
(63 |
) |
|
|
(57 |
) |
|
Distributions from equity investments |
|
|
20 |
|
|
|
14 |
|
|
Changes in other assets |
|
|
1 |
|
|
|
22 |
|
|
Changes in other liabilities |
|
|
— |
|
|
|
(49 |
) |
|
Cash provided by operating activities |
|
|
917 |
|
|
|
802 |
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Proceeds from sales of assets, net |
|
|
467 |
|
|
|
183 |
|
|
Return of investment |
|
|
23 |
|
|
|
21 |
|
|
Advances to and investments in affiliates |
|
|
(4 |
) |
|
|
(4 |
) |
|
Acquisitions |
|
|
(54 |
) |
|
|
(402 |
) |
|
Capital expenditures: |
|
|
|
|
|
|
|
|
|
Renewals and replacements |
|
|
(218 |
) |
|
|
(293 |
) |
|
Redevelopment and acquisition-related investments |
|
|
(187 |
) |
|
|
(175 |
) |
|
Change in furniture, fixtures and equipment ("FF&E") replacement fund |
|
|
(53 |
) |
|
|
(23 |
) |
|
Change in restricted cash for investing activities |
|
|
13 |
|
|
|
(15 |
) |
|
Property insurance proceeds |
|
|
— |
|
|
|
11 |
|
|
Cash used in investing activities |
|
|
(13 |
) |
|
|
(697 |
) |
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Financing costs |
|
|
— |
|
|
|
(7 |
) |
|
Issuances of debt |
|
|
— |
|
|
|
499 |
|
|
Draws on credit facility |
|
|
598 |
|
|
|
485 |
|
|
Term loan issuance |
|
|
— |
|
|
|
300 |
|
|
Repayment of credit facility |
|
|
(590 |
) |
|
|
(460 |
) |
|
Repurchase/redemption of senior notes |
|
|
— |
|
|
|
(500 |
) |
|
Mortgage debt and other prepayments and scheduled maturities |
|
|
(137 |
) |
|
|
— |
|
|
Common stock repurchase |
|
|
(206 |
) |
|
|
(330 |
) |
|
Dividends on common stock |
|
|
(448 |
) |
|
|
(498 |
) |
|
Other financing activities |
|
|
(6 |
) |
|
|
(6 |
) |
|
Cash used in financing activities |
|
|
(789 |
) |
|
|
(517 |
) |
|
Effects of exchange rate changes on cash held |
|
|
4 |
|
|
|
(14 |
) |
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
119 |
|
|
|
(426 |
) |
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
221 |
|
|
|
666 |
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
340 |
|
|
$ |
240 |
|
See notes to condensed consolidated statements.
4
HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Year-to-date ended September 30, 2016 and 2015
(unaudited)
Supplemental disclosure of cash flow information (in millions):
|
|
|
Year-to-date ended September 30, |
|
|||||
|
|
|
2016 |
|
|
2015 |
|
||
|
Interest paid - periodic interest expense |
|
$ |
105 |
|
|
$ |
128 |
|
|
Interest paid - debt extinguishments |
|
|
— |
|
|
|
15 |
|
|
Total interest paid |
|
$ |
105 |
|
|
$ |
143 |
|
|
Income taxes paid |
|
$ |
14 |
|
|
$ |
6 |
|
Supplemental disclosure of noncash financing activities:
During the third quarter in 2015, holders of $8.7 million of our 2.5% Exchangeable Senior Debentures due 2029 elected to exchange their debentures into 0.7 million shares of Host Inc. common stock.
Additionally, $22 million of the shares repurchased during the third quarter in 2015 were not settled until subsequent to September 30, 2015. Therefore, the corresponding cash payment did not occur until the fourth quarter.
See notes to condensed consolidated statements.
5
HOST HOTELS & RESORTS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2016 and December 31, 2015
(in millions)
|
|
|
September 30, 2016 |
|
|
December 31, 2015 |
|
||
|
|
|
(unaudited) |
|
|
|
|
|
|
|
ASSETS |
|
|||||||
|
Property and equipment, net |
|
$ |
10,379 |
|
|
$ |
10,583 |
|
|
Assets held for sale |
|
|
5 |
|
|
|
55 |
|
|
Due from managers |
|
|
106 |
|
|
|
56 |
|
|
Advances to and investments in affiliates |
|
|
307 |
|
|
|
324 |
|
|
Furniture, fixtures and equipment replacement fund |
|
|
182 |
|
|
|
141 |
|
|
Other |
|
|
221 |
|
|
|
261 |
|
|
Restricted cash |
|
|
2 |
|
|
|
15 |
|
|
Cash and cash equivalents |
|
|
340 |
|
|
|
221 |
|
|
Total assets |
|
$ |
11,542 |
|
|
$ |
11,656 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES, LIMITED PARTNERSHIP INTERESTS OF THIRD PARTIES AND CAPITAL |
|
|||||||
|
Debt |
|
|
|
|
|
|
|
|
|
Senior notes |
|
$ |
2,379 |
|
|
$ |
2,376 |
|
|
Credit facility, including term loans of $997 million and $996 million, respectively |
|
|
1,306 |
|
|
|
1,291 |
|
|
Mortgage debt |
|
|
67 |
|
|
|
200 |
|
|
Total debt |
|
|
3,752 |
|
|
|
3,867 |
|
|
Accounts payable and accrued expenses |
|
|
242 |
|
|
|
243 |
|
|
Other |
|
|
280 |
|
|
|
299 |
|
|
Total liabilities |
|
|
4,274 |
|
|
|
4,409 |
|
|
|
|
|
|
|
|
|
|
|
|
Limited partnership interests of third parties |
|
|
138 |
|
|
|
143 |
|
|
|
|
|
|
|
|
|
|
|
|
Host Hotels & Resorts, L.P. capital: |
|
|
|
|
|
|
|
|
|
General partner |
|
|
1 |
|
|
|
1 |
|
|
Limited partner |
|
|
7,169 |
|
|
|
7,170 |
|
|
Accumulated other comprehensive loss |
|
|
(79 |
) |
|
|
(107 |
) |
|
Total Host Hotels & Resorts, L.P. capital |
|
|
7,091 |
|
|
|
7,064 |
|
|
Non-controlling interests—consolidated partnerships |
|
|
39 |
|
|
|
40 |
|
|
Total capital |
|
|
7,130 |
|
|
|
7,104 |
|
|
Total liabilities, limited partnership interest of third parties and capital |
|
$ |
11,542 |
|
|
$ |
11,656 |
|
See notes to condensed consolidated statements.
6
HOST HOTELS & RESORTS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter and Year-to-date ended September 30, 2016 and 2015
(unaudited, in millions, except per unit amounts)
|
|
|
Quarter ended September 30, |
|
|
Year-to-date ended September 30, |
|
||||||||||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
|
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
|
$ |
879 |
|
|
$ |
870 |
|
|
$ |
2,655 |
|
|
$ |
2,625 |
|
|
Food and beverage |
|
|
336 |
|
|
|
337 |
|
|
|
1,183 |
|
|
|
1,160 |
|
|
Other |
|
|
80 |
|
|
|
76 |
|
|
|
255 |
|
|
|
239 |
|
|
Total revenues |
|
|
1,295 |
|
|
|
1,283 |
|
|
|
4,093 |
|
|
|
4,024 |
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
|
|
225 |
|
|
|
228 |
|
|
|
674 |
|
|
|
681 |
|
|
Food and beverage |
|
|
257 |
|
|
|
258 |
|
|
|
830 |
|
|
|
830 |
|
|
Other departmental and support expenses |
|
|
321 |
|
|
|
322 |
|
|
|
981 |
|
|
|
973 |
|
|
Management fees |
|
|
54 |
|
|
|
51 |
|
|
|
177 |
|
|
|
171 |
|
|
Other property-level expenses |
|
|
96 |
|
|
|
97 |
|
|
|
289 |
|
|
|
289 |
|
|
Depreciation and amortization |
|
|
182 |
|
|
|
177 |
|
|
|
541 |
|
|
|
528 |
|
|
Corporate and other expenses |
|
|
28 |
|
|
|
21 |
|
|
|
82 |
|
|
|
68 |
|
|
Gain on insurance and business interruption settlements |
|
|
(12 |
) |
|
|
(4 |
) |
|
|
(15 |
) |
|
|
(4 |
) |
|
Total operating costs and expenses |
|
|
1,151 |
|
|
|
1,150 |
|
|
|
3,559 |
|
|
|
3,536 |
|
|
OPERATING PROFIT |
|
|
144 |
|
|
|
133 |
|
|
|
534 |
|
|
|
488 |
|
|
Interest income |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
Interest expense |
|
|
(38 |
) |
|
|
(46 |
) |
|
|
(116 |
) |
|
|
(167 |
) |
|
Gain on sale of assets |
|
|
14 |
|
|
|
5 |
|
|
|
245 |
|
|
|
62 |
|
|
Gain (loss) on foreign currency transactions and derivatives |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
1 |
|
|
|
(3 |
) |
|
Equity in earnings of affiliates |
|
|
8 |
|
|
|
5 |
|
|
|
19 |
|
|
|
31 |
|
|
INCOME BEFORE INCOME TAXES |
|
|
127 |
|
|
|
96 |
|
|
|
685 |
|
|
|
413 |
|
|
Provision for income taxes |
|
|
(19 |
) |
|
|
(9 |
) |
|
|
(42 |
) |
|
|
(13 |
) |
|
NET INCOME |
|
|
108 |
|
|
|
87 |
|
|
|
643 |
|
|
|
400 |
|
|
Less: Net (income) loss attributable to non-controlling interests |
|
|
— |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
— |
|
|
NET INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, L.P. |
|
$ |
108 |
|
|
$ |
86 |
|
|
$ |
644 |
|
|
$ |
400 |
|
|
Basic earnings per common unit |
|
$ |
.15 |
|
|
$ |
.12 |
|
|
$ |
.87 |
|
|
$ |
.54 |
|
|
Diluted earnings per common unit |
|
$ |
.15 |
|
|
$ |
.12 |
|
|
$ |
.87 |
|
|
$ |
.54 |
|
See notes to condensed consolidated statements.
7
HOST HOTELS & RESORTS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Quarter and Year-to-date ended September 30, 2016 and 2015
(unaudited, in millions)
|
|
|
Quarter ended September 30, |
|
|
Year-to-date ended September 30, |
|
||||||||||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
|
NET INCOME |
|
$ |
108 |
|
|
$ |
87 |
|
|
$ |
643 |
|
|
$ |
400 |
|
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation and other comprehensive income (loss) of unconsolidated affiliates |
|
|
(1 |
) |
|
|
(27 |
) |
|
|
13 |
|
|
|
(71 |
) |
|
Change in fair value of derivative instruments |
|
|
— |
|
|
|
(8 |
) |
|
|
(2 |
) |
|
|
7 |
|
|
Amounts reclassified from other comprehensive income (loss) |
|
|
(7 |
) |
|
|
— |
|
|
|
17 |
|
|
|
(5 |
) |
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX |
|
|
(8 |
) |
|
|
(35 |
) |
|
|
28 |
|
|
|
(69 |
) |
|
COMPREHENSIVE INCOME |
|
|
100 |
|
|
|
52 |
|
|
|
671 |
|
|
|
331 |
|
|
Less: Comprehensive (income) loss attributable to non- controlling interests |
|
|
— |
|
|
|
(1 |
) |
|
|||||||