Segment Information

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Information

19. Segment Information

Effective January 1, 2012, as a result of certain organizational and operational changes, we redefined the New York business segment to encompass all of our Manhattan assets by including the 1.0 million square feet in 21 freestanding Manhattan street retail assets (formerly in our Retail segment), and the Hotel Pennsylvania and our interest in Alexander's, Inc. (formerly in our Other segment).Accordingly, we have reclassified the prior period segment financial results to conform to the current year presentation.See note (3) on page 34 for the elements of the New York segment's EBITDA.

Below isa summary of net income and a reconciliation of net income to EBITDA(1) by segment for the three months ended March 31, 2012 and 2011.

(Amounts in thousands)			For the Three Months Ended March 31, 2012
											Retail		Merchandise
				Total		New York			Washington, DC		Properties		Mart		Toys		Other
Property rentals				$	521,792	$	233,936		$	129,607	$	79,914	$	56,086	$	-	$	22,249
Straight-line rent adjustments					21,808		17,129			1,814		2,029		476		-		360
Amortization of acquired below-
	market leases, net				13,813		7,695			523		4,230		(3)		-		1,368
Total rentals					557,413		258,760			131,944		86,173		56,559		-		23,977
Tenant expense reimbursements					81,607		36,712			10,384		30,794		2,149		-		1,568
Cleveland Medical Mart development
	project				55,059		-			-		-		55,059		-		-
Fee and other income:
	BMS cleaning fees				15,510		22,647			-		-		-		-		(7,137)
	Management and leasing fees				4,381		907			2,783		664		45		-		(18)
	Lease termination fees				411		23			-		-		388		-		-
	Other				13,085		6,347			5,784		351		706		-		(103)
Total revenues					727,466		325,396			150,895		117,982		114,906		-		18,287
Operating expenses					276,826		145,672			49,003		45,933		33,553		-		2,665
Depreciation and amortization					139,437		53,759			44,153		21,614		9,365		-		10,546
General and administrative					55,890		8,587			6,953		6,333		6,219		-		27,798
Cleveland Medical Mart development
	project				52,761		-			-		-		52,761		-		-
Acquisition related costs and
	tenant buy-outs				685		-			-		-		-		-		685
Total expenses					525,599		208,018			100,109		73,880		101,898		-		41,694
Operating income (loss)					201,867		117,378			50,786		44,102		13,008		-		(23,407)
Income applicable to Toys					116,471		-			-		-		-		116,471		-
Income (loss) from partially owned
	entities				20,033		4,386			(1,870)		576		156		-		16,785
Income from Real Estate Fund					11,762		-			-		-		-		-		11,762
Interest and other investment
	income, net				15,681		1,052			57		14		3		-		14,555
Interest and debt expense					(135,169)		(36,141)			(30,411)		(19,295)		(8,634)		-		(40,688)
Income (loss) before income taxes					230,645		86,675			18,562		25,397		4,533		116,471		(20,993)
Income tax expense					(7,096)		(601)			(490)		-		(1,162)		-		(4,843)
Income (loss) from continuing
	operations				223,549		86,074			18,072		25,397		3,371		116,471		(25,836)
Income (loss) from discontinued operations					56,715		(608)			-		2,519		54,804		-		-
Net income (loss)					280,264		85,466			18,072		27,916		58,175		116,471		(25,836)
Less net (income) loss attributable to
	noncontrolling interests in:
	Consolidated subsidiaries				(9,597)		(2,176)			-		114		-		-		(7,535)
	Operating Partnership, including
		unit distributions			(19,145)		-			-		-		-		-		(19,145)
Net income (loss) attributable to
	Vornado				251,522		83,290			18,072		28,030		58,175		116,471		(52,516)
Interest and debt expense(2)					193,082		47,058			33,657		20,438		8,790		31,569		51,570
Depreciation and amortization(2)					191,173		61,911			48,260		22,275		9,478		34,706		14,543
Income tax expense(2)					51,440		693			523		-		1,162		43,203		5,859
EBITDA(1)				$	687,217	$	192,952	(3)	$	100,512	$	70,743	$	77,605	$	225,949	$	19,456	(4)
See notes on page 34.

19. Segment Information – continued

(Amounts in thousands)			For the Three Months Ended March 31, 2011
											Retail		Merchandise
				Total		New York			Washington, DC		Properties		Mart		Toys		Other
Property rentals				$	532,865	$	233,874		$	138,884	$	79,811	$	57,292	$	-	$	23,004
Straight-line rent adjustments					12,781		10,098			(5)		1,972		(314)		-		1,030
Amortization of acquired below-
	market leases, net				16,606		11,669			466		3,315		17		-		1,139
Total rentals					562,252		255,641			139,345		85,098		56,995		-		25,173
Tenant expense reimbursements					89,669		38,905			9,297		34,003		3,200		-		4,264
Cleveland Medical Mart development
	project				40,699		-			-		-		40,699		-		-
Fee and other income:
	BMS cleaning fees				15,423		22,042			-		-		-		-		(6,619)
	Management and leasing fees				4,106		769			2,885		555		103		-		(206)
	Lease termination fees				1,176		65			1,111		-		-		-		-
	Other				13,558		5,658			5,345		500		2,019		-		36
Total revenues					726,883		323,080			157,983		120,156		103,016		-		22,648
Operating expenses					286,362		143,375			48,836		50,134		38,667		-		5,350
Depreciation and amortization					129,833		54,812			33,684		21,412		9,329		-		10,596
General and administrative					58,946		7,534			6,537		7,212		7,545		-		30,118
Cleveland Medical Mart development
	project				38,278		-			-		-		38,278		-		-
Acquisition related costs and
	tenant buy-outs				18,270		15,000			-		-		3,040		-		230
Total expenses					531,689		220,721			89,057		78,758		96,859		-		46,294
Operating income (loss)					195,194		102,359			68,926		41,398		6,157		-		(23,646)
Income applicable to Toys					112,944		-			-		-		-		112,944		-
Income (loss) from partially owned
	entities				16,284		6,904			(3,915)		221		76		-		12,998
Income from Real Estate Fund					1,080		-			-		-		-		-		1,080
Interest and other investment
	income, net				117,108		1,072			32		8		9		-		115,987
Interest and debt expense					(134,710)		(36,584)			(28,926)		(19,520)		(9,338)		-		(40,342)
Net gain on disposition of wholly
	owned and partially owned assets				6,677		-			-		-		-		-		6,677
Income (loss) before income taxes					314,577		73,751			36,117		22,107		(3,096)		112,944		72,754
Income tax expense					(6,382)		(519)			(738)		(5)		(410)		-		(4,710)
Income (loss) from continuing
	operations				308,195		73,232			35,379		22,102		(3,506)		112,944		68,044
Income from discontinued operations					137,626		123			46,466		6,339		84,698		-		-
Net income					445,821		73,355			81,845		28,441		81,192		112,944		68,044
Less net (income) loss attributable to
	noncontrolling interests in:
	Consolidated subsidiaries				(1,350)		(2,271)			-		155		-		-		766
	Operating Partnership, including
		unit distributions			(31,808)		-			-		-		-		-		(31,808)
Net income attributable to
	Vornado				412,663		71,084			81,845		28,596		81,192		112,944		37,002
Interest and debt expense(2)					198,848		40,289			32,221		20,670		12,907		40,135		52,626
Depreciation and amortization(2)					185,848		56,709			41,899		22,375		11,175		34,673		19,017
Income tax expense (benefit)(2)					66,828		467			848		5		410		69,018		(3,920)
EBITDA(1)				$	864,187	$	168,549	(3)	$	156,813	$	71,646	$	105,684	$	256,770	$	104,725	(4)
See notes on the following page.

19. 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 elements of "New York" EBITDA are summarized below.
				For the Three Months Ended March 31,
	(Amounts in thousands)			2012		2011
	Office and retail(a)			$	180,137	$	155,365
	Alexander's				13,371		13,281
	Hotel Pennsylvania				(556)		(97)
		Total New York		$	192,952	$	168,549
	(a)		The EBITDA for the three months ended March 31, 2011 is after a $15,000 expense for the buy-out of a below market lease.
(4)	The elements of "other" EBITDA are summarized below.
				For the Three Months Ended March 31,
	(Amounts in thousands)			2012		2011
	Our share of Real Estate Fund:
		Income before net realized/unrealized gains		$	2,118	$	980
		Net unrealized gains			1,711		174
	Total				3,829		1,154
	LNR				15,562		9,390
	555 California Street				10,315		10,965
	Lexington				9,218		10,541
	Other investments				9,300		8,201
					48,224		40,251
	Corporate general and administrative expenses(a)				(22,317)		(21,355)
	Investment income and other, net(a)				10,445		13,083
	Fee income from Alexander's				1,889		1,887
	Income from the mark-to-market of J.C. Penney derivative position				1,045		17,163
	Acquisition costs				(685)		(230)
	Mezzanine loans loss reversal and net gain on disposition				-		82,744
	Net gain on sale of condominiums				-		4,586
	Real Estate Fund placement fees				-		(3,048)
	Net gain resulting from Lexington's stock issuance				-		1,452
	Net income attributable to noncontrolling interests in the Operating
		Partnership, including unit distributions			(19,145)		(31,808)
				$	19,456	$	104,725
	(a)		The amounts in these captions (for this table only) exclude the mark-to-market of our deferred compensation plan assets and offsetting liability.