Income Per Class A Unit

9 Months Ended

Sep. 30, 2015

19. Income Per Class A Unit

The following table provides a reconciliation of both net income and the number of Class A units used in the computation of (i) basic income per Class A unit - which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units, and (ii) diluted income per Class A unit - which includes the weighted average Class A units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado stock options, restricted unit and Out-Performance Plan awards.

(Amounts in thousands, except per unit amounts)			For the Three Months Ended				For the Nine Months Ended
			September 30,				September 30,
			2015		2014		2015		2014
Numerator:
	Income from continuing operations, net of income attributable
		to noncontrolling interests	$	197,475	$	77,344	$	487,238	$	229,345
	Income from discontinued operations			34,463		82,168		50,278		118,456
	Net income attributable to Vornado Realty L.P.			231,938		159,512		537,516		347,801
	Preferred unit distributions			(20,412)		(20,378)		(60,322)		(61,137)
	Net income attributable to Class A unitholders			211,526		139,134		477,194		286,664
	Earnings allocated to unvested participating securities			(1,053)		(769)		(2,862)		(2,436)
	Numerator for basic income per Class A unit			210,473		138,365		474,332		284,228
	Impact of assumed conversions:
		Convertible preferred unit distributions		23		24		69		-
	Numerator for diluted income per Class A unit		$	210,496	$	138,389	$	474,401	$	284,228

Denominator:
	Denominator for basic income per Class A unit – weighted
		average units		199,609		198,322		199,111		198,158
	Effect of dilutive securities⁽¹⁾:
		Vornado stock options and restricted unit awards		1,619		1,577		1,824		1,510
		Convertible preferred units		45		41		45		-
	Denominator for diluted income per Class A unit – weighted
		average units and assumed conversions		201,273		199,940		200,980		199,668

INCOME PER CLASS A UNIT – BASIC:
	Income from continuing operations, net		$	0.88	$	0.28	$	2.13	$	0.83
	Income from discontinued operations			0.17		0.42		0.25		0.60
	Net income per Class A unit		$	1.05	$	0.70	$	2.38	$	1.43

INCOME PER CLASS A UNIT – DILUTED:
	Income from continuing operations, net		$	0.88	$	0.28	$	2.11	$	0.83
	Income from discontinued operations			0.17		0.41		0.25		0.59
	Net income per Class A unit		$	1.05	$	0.69	$	2.36	$	1.42


(1)	The effect of dilutive securities for the three months ended September 30, 2015 and 2014 excludes an aggregate of 180 and 117 weighted average Class A unit equivalents, respectively, and 150 and 182 weighted average Class A unit equivalents for the nine months ended September 30, 2015 and 2014, respectively, as their effect was anti-dilutive.