Redeemable Partnership Units

12 Months Ended

Dec. 31, 2014

Redeemable Noncontrolling Interests [Abstract]

11. Redeemable Partnership Units

Redeemable partnership units on our consolidated balance sheets are primarily comprised of Class A units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “partners' capital” on our consolidated balance sheets. Class A units may be tendered for redemption to us for cash; Vornado, at its option, may assume that obligation and pay the holder either cash or Vornado common shares on a one-for-one basis. Because the number of Vornado common shares outstanding at all times equals the number of Class A units owned by Vornado, the redemption value of each Class A unit is equivalent to the market value of one Vornado common share, and the quarterly distribution to a Class A unitholder is equal to the quarterly dividend paid to a Vornado common shareholder.

Below are the details of our redeemable partnership units as of December 31, 2014 and 2013.


(Amounts in thousands, except units and										Preferred or
per unit amounts)		Balance as of				Units Outstanding at		Per Unit		Annual
		December 31,				December 31,		Liquidation		Distribution
Unit Series		2014			2013	2014	2013	Preference		Rate

	Class A units held by third parties	$	1,336,780	$	1,002,620	11,356,550	11,292,038		n/a	$	2.92

Redeemable Preferred: ⁽¹⁾
	5.00% D-16 Cumulative Redeemable	$	1,000	$	1,000	1	1	$	1,000,000.00	$	50,000.00

(1)	Holders may tender units for redemption to us for cash at their stated redemption amount; Vornado, at its option, may assume that obligation and pay the holders either cash or Vornado preferred shares on a one-for-one basis. These units are redeemable at any time.

Below is a table summarizing the activity of redeemable partnership units.

	(Amounts in thousands)
	Balance at December 31, 2012	$	944,152
	Net income		24,817
	Other comprehensive income		5,296
	Distributions		(34,053)
	Redemption of Class A units, at redemption value		(25,317)
	Adjustments to carry redeemable Class A units at redemption value		108,252
	Redemption of Series D-15 redeemable units		(36,900)
	Other, net		17,373
	Balance at December 31, 2013		1,003,620
	Net income		47,613
	Other comprehensive income		1,323
	Distributions		(33,469)
	Redemption of Class A units, at redemption value		(27,273)
	Adjustments to carry redeemable Class A units at redemption value		315,276
	Other, net		30,690
	Balance at December 31, 2014	$	1,337,780

Redeemable partnership units exclude our Series G Convertible Preferred units and Series D-13 Cumulative Redeemable Preferred units, as they are accounted for as liabilities in accordance with ASC 480, Distinguishing Liabilities and Equity, because of their possible settlement by issuing a variable number of Vornado common shares. Accordingly, the fair value of these units is included as a component of “other liabilities” on our consolidated balance sheets and aggregated $55,097,000 as of December 31, 2014 and 2013.