Redeemable Noncontrolling Interests

12 Months Ended

Dec. 31, 2011

Redeemable Noncontrolling Interests [Abstract]

10. Redeemable Noncontrolling Interests

Redeemable noncontrolling interests on our consolidated balance sheets represent Operating Partnership units held by third parties and are comprised of Class A units and Series D-10, D-14, D-15 and D-16 (collectively, “Series D”) cumulative redeemable preferred units. Class A units may be tendered for redemption to the Operating Partnership for cash; we, at our 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 Operating Partnership units held by third-parties that are included in “redeemable noncontrolling interests” as of December 31, 2011 and 2010.


(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		2011			2010	2011	2010	Preference		Rate
Common:
	Class A	$	934,677	$	1,066,974	12,160,771	12,804,202		N/A	$	2.76

Perpetual Preferred: ⁽¹⁾
	7.00% D-10 Cumulative Redeemable	$	80,000	$	80,000	3,200,000	3,200,000	$	25.00	$	1.75
	6.75% D-14 Cumulative Redeemable		100,000		100,000	4,000,000	4,000,000	$	25.00	$	1.6875
	6.875% D-15 Cumulative Redeemable		45,000		45,000	1,800,000	1,800,000	$	25.00	$	1.71875
	5.00% D-16 Cumulative Redeemable		1,000		1,000	1	1	$	1,000,000.00	$	50,000.00
	7.20% D-11 Cumulative Redeemable⁽²⁾		-		35,000	-	1,400,000	$	25.00	$	1.80
		$	226,000	$	261,000	9,000,001	10,400,001
__________________________________
(1)	Holders may tender units for redemption to the Operating Partnership for cash at their stated redemption amount; we, at our 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 our option at any time.
(2)	In 2011, we redeemed all of the outstanding Series D-11 cumulative redeemable preferred units for $20.00 per unit in cash, or $28,000 in the aggregate.

10. Redeemable Noncontrolling Interests - continued

Redeemable noncontrolling interests on our consolidated balance sheets 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 “additional capital” in our consolidated statements of changes in equity. Below is a table summarizing the activity of redeemable noncontrolling interests.

(Amounts in thousands)
Balance at December 31, 2009	$	1,251,628
Net income		55,228
Distributions		(53,515)
Conversion of Class A units into common shares, at redemption value		(126,764)
Adjustment to carry redeemable Class A units at redemption value		191,826
Redemption of Series D-12 redeemable units		(13,000)
Other, net		22,571
Balance at December 31, 2010		1,327,974
Net income		55,912
Distributions		(50,865)
Conversion of Class A units into common shares, at redemption value		(64,830)
Adjustment to carry redeemable Class A units at redemption value		(98,092)
Redemption of Series D-11 redeemable units		(28,000)
Other, net		18,578
Balance at December 31, 2011	$	1,160,677

Redeemable noncontrolling interests 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 $54,865,000 and $55,097,000 as of December 31, 2011 and 2010, respectively.