Note 1 - Interim Financial Statements

9 Months Ended

Sep. 30, 2011

Significant Accounting Policies [Text Block]

1. Interim Financial Statements

Principles of Consolidation -

The accompanying Condensed Consolidated Financial Statements include the accounts of Kimco Realty Corporation and Subsidiaries, (the “Company”). The Company’s Subsidiaries includes subsidiaries which are wholly-owned, and all entities in which the Company has a controlling financial interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity (“VIE”) or meets certain criteria of a sole general partner or managing member in accordance with the Consolidation guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). All inter-company balances and transactions have been eliminated in consolidation.  The information furnished in the accompanying Condensed Consolidated Financial Statements is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature.  These Condensed Consolidated Financial Statements should be read in conjunction with the Company's 2010 Annual Report on Form 10-K for the year ended December 31, 2010 ("10-K"), as certain disclosures in the Quarterly Report on Form 10-Q that would duplicate those included in the 10-K are not included in these Condensed Consolidated Financial Statements.

Subsequent Events -

The Company has evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements (see Note 19).

Income Taxes -

The Company has made an election to qualify, and believes it is operating so as to qualify, as a Real Estate Investment Trust (a “REIT”) for federal income tax purposes.  Accordingly, the Company generally will not be subject to federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under Sections 856 through 860 of the Internal Revenue Code, as amended (the “Code”).  However, in connection with the Tax Relief Extension Act of 1999, which became effective January 1, 2001, the Company is permitted to participate in certain activities from which it was previously precluded and maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries under the Code.  As such, the Company will be subject to federal and state income taxes on the income from these activities.  The Company is also subject to income taxes on certain non-U.S. investments in jurisdictions outside the U.S.

Earnings Per Share -

The following table sets forth the reconciliation of earnings and the weighted average number of shares used in the calculation of basic and diluted earnings per share (amounts presented in thousands except per share data):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2011		2010		2011		2010
Computation of Basic Earnings Per Share:
Income from continuing operations	$	52,657	$	31,816	$	130,017	$	110,172
Total net gain on transfer or sale of operating properties		-		-		-		2,377
Net income attributable to noncontrolling interests		(3,612)		(2,656)		(9,277)		(9,196)
Discontinued operations attributable to noncontrolling interests		(85)		(11)		(27)		97
Preferred stock dividends		(14,841)		(12,862)		(44,522)		(36,505)
Income from continuing operations available to the common shareholders		34,119		16,287		76,191		66,945
Earnings attributable to unvested restricted shares		(150)		(103)		(450)		(310)

Income from continuing operations attributable to common shareholders		33,969		16,184		75,741		66,635
Income from discontinued operations attributable to the Company		6,021		1,184		1,941		2,329
Net income attributable to the Company’s common shareholders	$	39,990	$	17,368	$	77,682	$	68,964
Weighted average common shares outstanding		406,564		405,854		406,521		405,709
Basic Earning Per Share Attributable to the Company’s Common Shareholders:
Income from continuing operations	$	0.08	$	0.04	$	0.19	$	0.16
Income from discontinued operations		0.02		-		-		0.01
Net income	$	0.10	$	0.04	$	0.19	$	0.17
Computation of Diluted Earnings Per Share:
Income from continuing operations attributable to common shareholders for diluted earnings per share	$	33,969	$	16,184	$	75,741	$	66,635
Income from discontinued operations attributable to the Company		6,021		1,184		1,941		2,329
Net income attributable to the Company’s common shareholders for diluted earnings per share	$	39,990	$	17,368	$	77,682	$	68,964
Weighted average common shares  outstanding – basic		406,564		405,854		406,521		405,709
Effect of dilutive securities (a): Equity awards		728		399		865		367
Shares for diluted earnings per common share		407,292		406,253		407,386		406,076
Diluted Earnings Per Share Attributable to the Company’s Common Shareholders:
Income from continuing operations	$	0.08	$	0.04	$	0.19	$	0.16
Loss from discontinued operations		0.02		-		-		0.01
Net income	$	0.10	$	0.04	$	0.19	$	0.17

(a)

For the three and nine months ended September 30, 2011 and 2010, the effect of certain convertible units would have an anti-dilutive effect upon the calculation of Income from continuing operations per share.  Accordingly, the impact of such conversion has not been included in the determination of diluted earnings per share calculations.

The Company's unvested restricted share awards contain non-forfeitable rights to distributions or distribution equivalents. The impact of the unvested restricted share awards on earnings per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends declared and the unvested restricted shares' participation rights in undistributed earnings.

There were approximately 13,552,139 and 15,825,838 stock options that were not dilutive at September 30, 2011 and 2010, respectively.

New Accounting Pronouncements -

In May 2011, the FASB issued ASU 2011-04 Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. ASU 2011-04 is intended to improve comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and International Financial Reporting Standards (“IFRS”). The amendments are of two types: (i) those that clarify the Board’s intent about the application of existing fair value measurement and disclosure requirements and (ii) those that change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The update is effective for annual periods beginning after December 15, 201l. The Company does not expect the adoption of this update to have a material impact on the Company’s financial statements.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, or ASU 2011-05. The amendments in this ASU require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity. ASU 2011-05 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2011, with early adoption permitted, but full retrospective application  is required. The Company does not expect the adoption of ASU 2011-05 to have a material effect on the Company’s financial position or results of operations.

Reclassifications –

The Company made the following reclassifications to the Company’s 2010 Consolidated Statements of Income to conform to the 2011 presentation: (i) a reclassification of the income from the Company’s investment in the Albertson’s joint venture from equity in income of joint ventures, net to equity in income of other real estate investments, net, (ii) a reclassification of equity amounts from income from other real estate investments to equity in income from other real estate investments, net, and (iii) a reclassification of foreign taxes from other expense, net to the provision for income taxes, net.