HOST HOTELS RESORTS INC
For the period ended Dec 31, 2023. Filed Feb 28, 2024.
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FY2023 · Filed Feb 28, 2024
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Consolidated Statements of Cash Flows for the Years Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| OPERATING ACTIVITIES | |||
| Net income (loss) | $752 | $643 | $(11) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
| Depreciation and amortization | 697 | 664 | 762 |
| Amortization of finance costs, discounts and premiums, net | 9 | 10 | 10 |
| Loss on extinguishment of debt | 4 | — | 23 |
| Stock compensation expense | 30 | 26 | 18 |
| Deferred income taxes | 26 | 20 | (93) |
| Other gains | (71) | (17) | (306) |
| Gain on property insurance settlement | (3) | (6) | — |
| Equity in earnings of affiliates | (6) | (3) | (31) |
| Change in due from/to managers | (40) | 15 | (151) |
| Distributions from investments in affiliates | 31 | 30 | 21 |
| Property insurance proceeds - remediation costs | 101 | — | — |
| Payments for inventory costs | (15) | — | — |
| Changes in other assets | (3) | 20 | 10 |
| Changes in other liabilities | (71) | 14 | 40 |
| Net cash provided by operating activities | 1,441 | 1,416 | 292 |
| INVESTING ACTIVITIES | |||
| Proceeds from sales of assets, net | 34 | 236 | 729 |
| Proceeds from loan receivable | 413 | — | 9 |
| Return of investments in affiliates | 5 | — | — |
| Advances to and investments in affiliates | (25) | (60) | (11) |
| Acquisitions | — | (301) | (1,458) |
| Capital expenditures: | |||
| Renewals and replacements | (451) | (197) | (134) |
| Return on investment | (195) | (307) | (293) |
| Property insurance proceeds | 36 | 11 | — |
| Net cash used in investing activities | (183) | (618) | (1,158) |
| FINANCING ACTIVITIES | |||
| Financing costs | (10) | (1) | (8) |
| Issuances of debt | — | — | 443 |
| Repayment of credit facility | — | (683) | (800) |
| Repurchase/redemption of senior notes | — | — | (400) |
| Mortgage debt and other prepayments and scheduled maturities | (7) | (2) | — |
| Debt extinguishment costs | (3) | — | (22) |
| Issuance of common stock | 1 | 1 | 138 |
| Common stock repurchases | (182) | (27) | — |
| Dividends on common stock | (547) | (150) | — |
| Distributions and payments to non-controlling interests | (10) | (3) | — |
| Other financing activities | (13) | (9) | (8) |
| Net cash used in financing activities | (771) | (874) | (657) |
| Effects of exchange rate changes on cash held | 2 | (3) | — |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 489 | (79) | (1,523) |
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 874 | 953 | 2,476 |
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $1,363 | $874 | $953 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
Supplemental disclosure of cash flow information (in millions):
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the balance sheet to the amount shown on the statements of cash flows:
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Cash and cash equivalents | $1,144 | $667 | $807 |
| Restricted cash (included in other assets) | 2 | 7 | 2 |
| Cash included in furniture, fixtures and equipment replacement fund | 217 | 200 | 144 |
| Total cash and cash equivalents and restricted cash shown in the statements of cash flows | $1,363 | $874 | $953 |
Supplemental schedule of noncash investing and financing activities:
During 2023, 2022, and 2021, Host Inc. issued approximately 0.5 million,0.3 million and 0.1 million shares of common stock, respectively, upon the conversion of Host L.P. units, or OP units, held by non-controlling interests valued at $8 million, $5 million and $2 million, respectively.
During 2023, the intent for a land parcel adjacent to the Four Seasons Orland at Walt Disney World® Resort changed from "held for use" to "used for the development of inventory". As a result, we have reclassified $30 million from property and equipment to other assets.
On January 20, 2022, we entered into definitive agreements with Noble Investment Group, LLC, and certain other entities and persons related to Noble Investment Group, LLC, pursuant to which we made an investment in a joint venture with Noble Investment Group. In connection with the investment, Host L.P. issued approximately 3.2 million OP units valued at approximately $56 million.
In connection with the sales of The Camby, Autograph Collection in March 2023, the Sheraton Boston Hotel in February 2022 and the Sheraton New York Times Square Hotel in April 2022, we issued bridge loans to the buyers for $72 million, $163 million and $250 million, respectively. The proceeds received from the sales are net of the loans.
In 2022 and 2021, non-cash consideration for the acquisitions of Four Seasons Resort and Residences Jackson Hole and Four Seasons Resort Orlando at Walt Disney World® Resort included the assumption of hotel level liabilities of approximately $19 million and $24 million, respectively, consisting primarily of advance deposits received from guests for future stays that were retained by the seller.
In 2021, non-cash consideration for the acquisition of the Hotel Van Zandt included the assumption of a $102 million mortgage loan.
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