Segment Information

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Segment Information

20. Segment Information

Below isa summary of net income and a reconciliation of net income to EBITDA(1) by segment for the three and ninemonths ended September 30, 2011 and 2010.

(Amounts in thousands)			For the Three Months Ended September 30, 2011
						New York		Washington, DC				Merchandise
				Total		Office		Office		Retail		Mart		Toys		Other(3)
Property rentals				$	530,086	$	196,123	$	133,156	$	105,788	$	46,278	$	-	$	48,741
Straight-line rent adjustments					14,963		3,998		6,673		4,696		(1,006)		-		602
Amortization of acquired below-
	market leases, net				16,100		8,153		547		6,268		21		-		1,111
Total rentals					561,149		208,274		140,376		116,752		45,293		-		50,454
Tenant expense reimbursements					94,053		43,025		9,328		36,297		2,972		-		2,431
Cleveland Medical Mart development
	project				35,135		-		-		-		35,135		-		-
Fee and other income:
	Tenant cleaning fees				15,647		24,047		-		-		-		-		(8,400)
	Management and leasing fees				4,361		1,653		2,670		541		45		-		(548)
	Lease termination fees				4,803		3,540		1,002		261		-		-		-
	Other				12,195		5,212		5,232		1,155		988		-		(392)
Total revenues					727,343		285,751		158,608		155,006		84,433		-		43,545
Operating expenses					285,659		129,472		51,791		57,412		30,803		-		16,181
Depreciation and amortization					134,074		47,038		33,885		30,080		10,372		-		12,699
General and administrative					46,452		4,461		6,505		6,721		9,534		-		19,231
Cleveland Medical Mart development
	project				33,419		-		-		-		33,419		-		-
Tenant buy-outs and other acquisition
	related costs				2,288		-		-		1,593		-		-		695
Total expenses					501,892		180,971		92,181		95,806		84,128		-		48,806
Operating income (loss)					225,451		104,780		66,427		59,200		305		-		(5,261)
(Loss) applicable to Toys					(9,304)		-		-		-		-		(9,304)		-
Income (loss) from partially owned
	entities				13,552		(5,136)		(1,356)		889		38		-		19,117
Income from Real Estate Fund					5,353		-		-		-		-		-		5,353
Interest and other investment
	(loss) income, net				(29,994)		146		39		3		17		-		(30,199)
Interest and debt expense					(136,672)		(35,395)		(30,256)		(23,176)		(9,365)		-		(38,480)
Net gain on disposition of wholly
	owned and partially owned assets				1,298		-		-		-		-		-		1,298
Income (loss) before income taxes					69,684		64,395		34,854		36,916		(9,005)		(9,304)		(48,172)
Income tax expense					(7,144)		(678)		(960)		-		(890)		-		(4,616)
Income (loss) from continuing
	operations				62,540		63,717		33,894		36,916		(9,895)		(9,304)		(52,788)
Income from discontinued
	operations				3,683		165		-		818		2,700		-		-
Net income (loss)					66,223		63,882		33,894		37,734		(7,195)		(9,304)		(52,788)
Less:
	Net (income) loss attributable to
		noncontrolling interests in
		consolidated subsidiaries			(5,636)		(2,219)		-		110		-		-		(3,527)
	Net (income) attributable to
		noncontrolling interests in the
		Operating Partnership, including
		unit distributions			(6,825)		-		-		-		-		-		(6,825)
Net income (loss) attributable to
	Vornado				53,762		61,663		33,894		37,844		(7,195)		(9,304)		(63,140)
Interest and debt expense(2)					197,864		39,526		33,703		24,368		9,523		38,018		52,726
Depreciation and amortization(2)					193,394		53,936		38,085		30,946		12,230		34,293		23,904
Income tax (benefit) expense(2)					(7,350)		736		925		-		890		(15,135)		5,234
EBITDA(1)				$	437,670	$	155,861	$	106,607	$	93,158	$	15,448	$	47,872	$	18,724
See notes on page 35.

20. Segment Information – continued

(Amounts in thousands)			For the Three Months Ended September 30, 2010
						New York		Washington, DC				Merchandise
				Total		Office		Office		Retail		Mart		Toys		Other(3)
Property rentals				$	526,776	$	194,815	$	146,439	$	97,625	$	42,774	$	-	$	45,123
Straight-line rent adjustments					15,986		7,573		347		7,441		(457)		-		1,082
Amortization of acquired below-
	market leases, net				16,756		8,936		594		5,820		15		-		1,391
Total rentals					559,518		211,324		147,380		110,886		42,332		-		47,596
Tenant expense reimbursements					95,341		40,387		15,129		35,688		2,784		-		1,353
Fee and other income:
	Tenant cleaning fees				13,613		21,721		-		-		-		-		(8,108)
	Management and leasing fees				3,555		1,428		2,772		214		(2)		-		(857)
	Lease termination fees				2,301		1,220		728		346		7		-		-
	Other				12,797		5,505		5,554		1,016		800		-		(78)
Total revenues					687,125		281,585		171,563		148,150		45,921		-		39,906
Operating expenses					275,077		124,152		58,327		52,309		26,391		-		13,898
Depreciation and amortization					130,599		44,131		36,764		26,329		9,853		-		13,522
General and administrative					55,200		4,504		5,984		8,843		6,010		-		29,859
Tenant buy-outs and other acquisition
	related costs				921		-		-		-		-		-		921
Total expenses					461,797		172,787		101,075		87,481		42,254		-		58,200
Operating income (loss)					225,328		108,798		70,488		60,669		3,667		-		(18,294)
(Loss) applicable to Toys					(2,557)		-		-		-		-		(2,557)		-
(Loss) income from partially owned
	entities				(1,996)		1,705		(1,095)		833		8		-		(3,447)
(Loss) from Real Estate Fund					(1,410)		-		-		-		-		-		(1,410)
Interest and other investment
	income (loss), net				47,096		139		81		(46)		11		-		46,911
Interest and debt expense					(145,561)		(33,293)		(33,367)		(24,199)		(9,556)		-		(45,146)
Net (loss) on extinguishment
	of debt				(724)		-		-		-		-		-		(724)
Net gain on disposition of wholly
	owned and partially owned assets				5,072		-		-		-		-		-		5,072
Income (loss) before income taxes					125,248		77,349		36,107		37,257		(5,870)		(2,557)		(17,038)
Income tax (expense) benefit					(5,449)		(861)		(1,001)		(2)		714		-		(4,299)
Income (loss) from continuing
	operations				119,799		76,488		35,106		37,255		(5,156)		(2,557)		(21,337)
(Loss) income from discontinued
	operations				(3,667)		30		1,410		(3,642)		(1,465)		-		-
Net income (loss)					116,132		76,518		36,516		33,613		(6,621)		(2,557)		(21,337)
Less:
	Net (income) loss attributable to
		noncontrolling interests in
		consolidated subsidiaries			(296)		(2,442)		-		397		-		-		1,749
	Net (income) attributable to
		noncontrolling interests in the
		Operating Partnership, including
		unit distributions			(11,584)		-		-		-		-		-		(11,584)
Net income (loss) attributable to
	Vornado				104,252		74,076		36,516		34,010		(6,621)		(2,557)		(31,172)
Interest and debt expense(2)					208,294		31,817		34,241		26,395		15,883		40,558		59,400
Depreciation and amortization(2)					179,148		42,531		41,394		28,024		12,782		30,079		24,338
Income tax (benefit) expense(2)					(23,013)		861		1,054		2		(714)		(27,501)		3,285
EBITDA(1)				$	468,681	$	149,285	$	113,205	$	88,431	$	21,330	$	40,579	$	55,851
See notes on page 35.

20. Segment Information – continued

(Amounts in thousands)			For the Nine Months Ended September 30, 2011
						New York		Washington, DC				Merchandise
				Total		Office		Office		Retail		Mart		Toys		Other(3)
Property rentals				$	1,604,451	$	586,797	$	413,810	$	316,729	$	154,485	$	-	$	132,630
Straight-line rent adjustments					34,713		15,777		5,962		12,556		(2,059)		-		2,477
Amortization of acquired below-
	market leases, net				49,387		24,549		1,525		19,899		55		-		3,359
Total rentals					1,688,551		627,123		421,297		349,184		152,481		-		138,466
Tenant expense reimbursements					264,857		108,267		27,561		111,519		9,121		-		8,389
Cleveland Medical Mart development
	project				108,203		-		-		-		108,203		-		-
Fee and other income:
	Tenant cleaning fees				46,479		71,156		-		-		-		-		(24,677)
	Management and leasing fees				15,456		5,260		9,629		2,439		348		-		(2,220)
	Lease termination fees				12,478		9,176		3,013		289		-		-		-
	Other				37,826		15,078		15,894		4,241		2,832		-		(219)
Total revenues					2,173,850		836,060		477,394		467,672		272,985		-		119,739
Operating expenses					841,266		367,291		150,375		173,623		99,266		-		50,711
Depreciation and amortization					393,846		138,837		101,634		85,653		29,113		-		38,609
General and administrative					155,566		14,389		19,504		22,034		23,855		-		75,784
Cleveland Medical Mart development
	project				101,637		-		-		-		101,637		-		-
Tenant buy-outs and other acquisition
	related costs				22,455		-		-		16,593		3,040		-		2,822
Total expenses					1,514,770		520,517		271,513		297,903		256,911		-		167,926
Operating income (loss)					659,080		315,543		205,881		169,769		16,074		-		(48,187)
Income applicable to Toys					80,794		-		-		-		-		80,794		-
Income (loss) from partially owned
	entities				56,239		(4,893)		(6,038)		2,131		292		-		64,747
Income from Real Estate Fund					25,491		-		-		-		-		-		25,491
Interest and other investment
	income, net				95,121		466		119		5		35		-		94,496
Interest and debt expense					(408,532)		(103,514)		(89,911)		(69,482)		(28,140)		-		(117,485)
Net gain on disposition of wholly
	owned and partially owned assets				7,975		-		-		-		-		-		7,975
Income (loss) before income taxes					516,168		207,602		110,051		102,423		(11,739)		80,794		27,037
Income tax expense					(19,448)		(1,637)		(2,267)		(5)		(2,211)		-		(13,328)
Income (loss) from continuing
	operations				496,720		205,965		107,784		102,418		(13,950)		80,794		13,709
Income from discontinued operations					146,293		398		46,466		9,217		90,212		-		-
Net income					643,013		206,363		154,250		111,635		76,262		80,794		13,709
Less:
	Net (income) loss attributable to
		noncontrolling interests in
		consolidated subsidiaries			(20,643)		(6,815)		-		196		-		-		(14,024)
	Net (income) attributable to
		noncontrolling interests in the
		Operating Partnership, including
		unit distributions			(47,364)		-		-		-		-		-		(47,364)
Net income (loss) attributable to
	Vornado				575,006		199,548		154,250		111,831		76,262		80,794		(47,679)
Interest and debt expense(2)					599,668		108,473		100,017		73,000		32,025		121,546		164,607
Depreciation and amortization(2)					561,738		146,650		118,290		88,322		34,632		101,862		71,982
Income tax expense(2)					42,135		1,695		2,380		5		2,211		29,914		5,930
EBITDA(1)				$	1,778,547	$	456,366	$	374,937	$	273,158	$	145,130	$	334,116	$	194,840
See notes on page 35.

20. Segment Information – continued

(Amounts in thousands)			For the Nine Months Ended September 30, 2010
						New York		Washington, DC				Merchandise
				Total		Office		Office		Retail		Mart		Toys		Other(3)
Property rentals				$	1,560,473	$	582,090	$	426,217	$	284,808	$	145,206	$	-	$	122,152
Straight-line rent adjustments					53,018		22,642		5,519		21,699		628		-		2,530
Amortization of acquired below-
	market leases, net				48,476		27,312		1,836		14,897		(91)		-		4,522
Total rentals					1,661,967		632,044		433,572		321,404		145,743		-		129,204
Tenant expense reimbursements					271,040		105,968		42,592		107,799		8,876		-		5,805
Fee and other income:
	Tenant cleaning fees				40,733		62,778		-		-		-		-		(22,045)
	Management and leasing fees				16,075		4,278		13,252		759		31		-		(2,245)
	Lease termination fees				10,112		4,245		1,256		4,182		429		-		-
	Other				37,918		14,428		16,452		2,284		3,471		-		1,283
Total revenues					2,037,845		823,741		507,124		436,428		158,550		-		112,002
Operating expenses					802,927		349,934		163,097		159,131		85,915		-		44,850
Depreciation and amortization					393,259		131,911		108,994		80,550		30,111		-		41,693
General and administrative					153,231		13,824		18,079		22,591		20,252		-		78,485
Tenant buy-outs and other acquisition
	related costs				2,851		-		-		-		-		-		2,851
Total expenses					1,352,268		495,669		290,170		262,272		136,278		-		167,879
Operating income (loss)					685,577		328,072		216,954		174,156		22,272		-		(55,877)
Income applicable to Toys					102,309		-		-		-		-		102,309		-
Income (loss) from partially owned
	entities				13,800		4,345		(1,099)		3,353		239		-		6,962
(Loss) from Real Estate Fund					(1,410)		-		-		-		-		-		(1,410)
Interest and other investment
	income, net				65,676		466		130		143		35		-		64,902
Interest and debt expense					(423,354)		(99,026)		(101,592)		(62,047)		(28,383)		-		(132,306)
Net (loss) on extinguishment
	of debt				(1,796)		-		-		-		-		-		(1,796)
Net gain on disposition of wholly
	owned and partially owned assets				12,759		-		-		-		765		-		11,994
Income (loss) before income taxes					453,561		233,857		114,393		115,605		(5,072)		102,309		(107,531)
Income tax (expense) benefit					(15,993)		(1,670)		(1,092)		(37)		118		-		(13,312)
Income (loss) from continuing
	operations				437,568		232,187		113,301		115,568		(4,954)		102,309		(120,843)
(Loss) income from discontinued operations					(11,681)		106		(5,776)		(1,539)		(4,472)		-		-
Net income (loss)					425,887		232,293		107,525		114,029		(9,426)		102,309		(120,843)
Less:
	Net (income) loss attributable to
		noncontrolling interests in
		consolidated subsidiaries			(1,490)		(7,290)		-		895		-		-		4,905
	Net (income) attributable to
		noncontrolling interests in the
		Operating Partnership, including
		unit distributions			(33,487)		-		-		-		-		-		(33,487)
Net income (loss) attributable to
	Vornado				390,910		225,003		107,525		114,924		(9,426)		102,309		(149,425)
Interest and debt expense(2)					611,993		94,404		104,355		68,275		45,370		123,791		175,798
Depreciation and amortization(2)					549,400		127,341		120,929		85,335		39,049		99,850		76,896
Income tax expense (benefit)(2)					13,553		1,670		1,161		37		(59)		(1,914)		12,658
EBITDA(1)				$	1,565,856	$	448,418	$	333,970	$	268,571	$	74,934	$	324,036	$	115,927
See notes on the following page.

20. Segment Information - continued
	Notes to preceding tabular information:
(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." We consider EBITDA a supplemental measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on a multiple of EBITDA, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.
(2)	Interest and debt expense, depreciation and amortization and income tax (benefit) expense in the reconciliation of net income (loss) to EBITDA includes our share of these items from partially owned entities.
(3)	The components of other EBITDA are summarized below. The totals for each of the columns below agree to the total EBITDA for the "other" column in the preceding EBITDA by segment reconciliations.

			For the Three Months				For the Nine Months
(Amounts in thousands)			Ended September 30,				Ended September 30,
			2011		2010		2011		2010
Our share of Real Estate Fund:
	Operations		$	743	$	(319)	$	2,550	$	(319)
	Net unrealized gains			1,410		-		4,802		-
	Net realized gains			-		-		771		-
	Carried interest (reversal) accrual			(475)		-		1,665		-
Total				1,678		(319)		9,788		(319)
Alexander's				14,588		13,288		45,577		41,947
LNR (acquired in July 2010) (1)				15,769		-		38,569		-
Lexington (2)				8,424		8,092		37,730		37,375
555 California Street				11,220		11,797		32,608		34,421
Hotel Pennsylvania				9,773		8,080		18,382		14,249
Other investments				10,075		4,004		30,011		22,619
				71,527		44,942		212,665		150,292
Corporate general and administrative expenses (3)				(21,585)		(20,712)		(62,964)		(60,668)
Investment income and other, net (3)				12,530		15,808		38,860		41,876
Mezzanine loans loss reversal (accrual) and net gain on disposition				-		-		82,744		(6,900)
(Loss) income from the mark-to-market of J.C. Penney derivative
	position			(37,537)		32,249		(27,136)		32,249
Net gain on sale of condominiums				1,298		-		5,884		3,149
Acquisition related costs				(684)		(921)		(4,398)		(2,851)
Real Estate Fund placement fees				-		(3,207)		(3,451)		(5,937)
Net loss on extinguishment of debt				-		(724)		-		(1,796)
Net income attributable to noncontrolling interests in the Operating
	Partnership, including unit distributions			(6,825)		(11,584)		(47,364)		(33,487)
			$	18,724	$	55,851	$	194,840	$	115,927
(1)		The nine months ended September 30, 2011 includes $6,020 for our share of net gains from asset sales and $8,977 for our share of a tax settlement gain.
(2)		Includes net gains of $9,760 and $5,998 in the nine months ended September 30, 2011 and 2010, respectively, resulting from Lexington's stock issuances.
(3)		The amounts in these captions (for this table only) exclude the mark-to-market of our deferred compensation plan assets and offsetting liability.