Income Per Share

6 Months Ended

Jun. 30, 2011

Income Per Share [Abstract]

Income Per Share

16.       Income Per Share

The following table provides a reconciliation of both net income and the number of common shares used in the computation of (i) basic income per common share - which utilizes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and (ii) diluted income per common share - which includes the weighted average common shares and potentially dilutive share equivalents. Potentially dilutive share equivalents include our Series A convertible preferred shares, employee stock options, restricted stock and exchangeable senior debentures due 2025.

			For the Three Months				For the Six Months
(Amounts in thousands, except per share amounts)			Ended June 30,				Ended June 30,
			2011		2010		2011		2010
Numerator:
	Income from continuing operations, net of income
		attributable to noncontrolling interests	$	108,152	$	75,787	$	395,099	$	299,909
	Income (loss) from discontinued operations, net of income
		attributable to noncontrolling interests		429		(3,681)		126,145		(13,251)
	Net income attributable to Vornado			108,581		72,106		521,244		286,658
	Preferred share dividends			(16,668)		(14,266)		(30,116)		(28,533)
	Net income attributable to common shareholders			91,913		57,840		491,128		258,125
	Earnings allocated to unvested participating securities			(48)		(29)		(184)		(49)
	Numerator for basic income per share			91,865		57,811		490,944		258,076
	Impact of assumed conversions:
		Interest on 3.88% exchangeable senior debentures		-		-		13,090		-
		Convertible preferred share dividends		-		-		64		81
	Numerator for diluted income per share		$	91,865	$	57,811	$	504,098	$	258,157
Denominator:
	Denominator for basic income per share –
		weighted average shares		184,268		182,027		184,129		181,786
	Effect of dilutive securities (1):
		3.88% exchangeable senior debentures		-		-		5,736		-
		Employee stock options and restricted share awards		1,876		1,617		1,815		1,741
		Convertible preferred shares		-		-		56		71
	Denominator for diluted income per share –
		weighted average shares and assumed conversions		186,144		183,644		191,736		183,598
INCOME PER COMMON SHARE – BASIC:
	Income from continuing operations, net		$	0.50	$	0.34	$	1.98	$	1.49
	(Loss) income from discontinued operations, net			0.00		(0.02)		0.69		(0.07)
	Net income per common share		$	0.50	$	0.32	$	2.67	$	1.42
INCOME PER COMMON SHARE – DILUTED:
	Income from continuing operations, net		$	0.49	$	0.33	$	1.97	$	1.48
	(Loss) income from discontinued operations, net			0.00		(0.02)		0.66		(0.07)
	Net income per common share		$	0.49	$	0.31	$	2.63	$	1.41
(1)		The effect of dilutive securities above excludes anti-dilutive weighted average common share equivalents of 18,349 and 20,075 in the three months ended June 30, 2011 and 2010, respectively, and 12,922 and 19,941 in the six months ended June 30, 2011 and 2010, respectively.