Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

23. Segment Information

As a result of certain organizational changes and asset sales in 2012, the Merchandise Mart segment no longer meets the criteria to be a separate reportable segment; accordingly, effective January 1, 2013, the remaining assets have been reclassified to “Other.”We have also reclassified the prior period segment financial results to conform to the current year presentation. Below is a summary of net income and a reconciliation of net income to EBITDA(1) by segment for the three and ninemonths ended September 30, 2013 and 2012.

(Amounts in thousands)			For the Three Months Ended September 30, 2013
												Retail
				Total		New York			Washington, DC			Properties			Toys		Other
Property rentals				$	505,062	$	277,855		$	113,737		$	63,361		$	-	$	50,109
Straight-line rent adjustments					15,809		9,430			234			1,491			-		4,654
Amortization of acquired below-market
	leases, net				11,820		7,151			521			2,894			-		1,254
Total rentals					532,691		294,436			114,492			67,746			-		56,017
Tenant expense reimbursements					84,638		47,142			10,462			21,670			-		5,364
Cleveland Medical Mart development project					4,893		-			-			-			-		4,893
Fee and other income:
	BMS cleaning fees				15,898		21,191			-			-			-		(5,293)
	Signage revenue				8,738		8,738			-			-			-		-
	Management and leasing fees				7,982		2,615			5,263			371			-		(267)
	Lease termination fees				20,432		19,496			867			-			-		69
	Other income				8,108		581			6,520			656			-		351
Total revenues					683,380		394,199			137,604			90,443			-		61,134
Operating expenses					264,422		160,465			49,646			31,628			-		22,683
Depreciation and amortization					124,079		58,058			31,109			16,455			-		18,457
General and administrative					48,250		7,849			6,857			4,240			-		29,304
Cleveland Medical Mart development project					3,239		-			-			-			-		3,239
Acquisition related costs					2,818		-			-			-			-		2,818
Total expenses					442,808		226,372			87,612			52,323			-		76,501
Operating income (loss)					240,572		167,827			49,992			38,120			-		(15,367)
(Loss) applicable to Toys					(34,209)		-			-			-			(34,209)		-
Income (loss) from partially owned entities					1,453		4,189			(2,003)			188			-		(921)
Income from Real Estate Fund					22,913		-			-			-			-		22,913
Interest and other investment
	(loss) income, net				(10,275)		1,468			17			1			-		(11,761)
Interest and debt expense					(119,870)		(42,538)			(27,246)			(10,839)			-		(39,247)
Net gain on disposition of wholly owned and
	partially owned assets				15,138		-			-			1,377			-		13,761
Income (loss) before income taxes					115,722		130,946			20,760			28,847			(34,209)		(30,622)
Income tax expense					(2,222)		(65)			(766)			(731)			-		(660)
Income (loss) from continuing operations					113,500		130,881			19,994			28,116			(34,209)		(31,282)
Income (loss) from discontinued operations					18,751		-			-			19,012			-		(261)
Net income (loss)					132,251		130,881			19,994			47,128			(34,209)		(31,543)
Less net income attributable to
	noncontrolling interests in:
	Consolidated subsidiaries				(23,833)		(6,556)			-			(2,970)			-		(14,307)
	Operating Partnership				(5,032)		-			-			-			-		(5,032)
	Preferred unit distributions of the
		Operating Partnership			(12)		-			-			-			-		(12)
Net income (loss) attributable to
	Vornado				103,374		124,325			19,994			44,158			(34,209)		(50,894)
Interest and debt expense(2)					183,116		59,344			30,717			12,119			38,435		42,501
Depreciation and amortization(2)					172,756		67,294			35,403			17,573			32,176		20,310
Income tax (benefit) expense (2)					(20,292)		67			828			731			(22,690)		772
EBITDA(1)				$	438,954	$	251,030	(3)	$	86,942	(4)	$	74,581	(5)	$	13,712	$	12,689	(6)
See notes on page 38.

23. Segment Information – continued

(Amounts in thousands)			For the Three Months Ended September 30, 2012
												Retail
				Total		New York			Washington, DC			Properties			Toys		Other
Property rentals				$	486,914	$	255,703		$	115,641		$	63,408		$	-	$	52,162
Straight-line rent adjustments					11,391		8,140			1,267			1,873			-		111
Amortization of acquired below-market
	leases, net				13,256		8,458			506			2,882			-		1,410
Total rentals					511,561		272,301			117,414			68,163			-		53,683
Tenant expense reimbursements					79,215		45,164			9,601			19,787			-		4,663
Cleveland Medical Mart development project					72,651		-			-			-			-		72,651
Fee and other income:
	BMS cleaning fees				16,945		23,918			-			-			-		(6,973)
	Signage revenue				4,783		4,783			-			-			-		-
	Management and leasing fees				7,234		1,816			4,615			736			-		67
	Lease termination fees				282		78			128			73			-		3
	Other income				10,381		1,116			8,288			569			-		408
Total revenues					703,052		349,176			140,046			89,328			-		124,502
Operating expenses					261,512		159,048			50,305			30,726			-		21,433
Depreciation and amortization					122,241		57,967			29,825			16,359			-		18,090
General and administrative					48,456		6,739			6,668			6,103			-		28,946
Cleveland Medical Mart development project					70,431		-			-			-			-		70,431
Acquisition related costs					1,070		-			-			-			-		1,070
Total expenses					503,710		223,754			86,798			53,188			-		139,970
Operating income (loss)					199,342		125,422			53,248			36,140			-		(15,468)
(Loss) applicable to Toys					(8,585)		-			-			-			(8,585)		-
Income (loss) from partially owned entities					21,268		9,309			(2,182)			342			-		13,799
Income from Real Estate Fund					5,509		-			-			-			-		5,509
Interest and other investment
	income, net				10,523		1,057			24			4			-		9,438
Interest and debt expense					(119,330)		(36,817)			(28,311)			(13,292)			-		(40,910)
Income (loss) before income taxes					108,727		98,971			22,779			23,194			(8,585)		(27,632)
Income tax (expense) benefit					(3,015)		(815)			25			-			-		(2,225)
Income (loss) from continuing operations					105,712		98,156			22,804			23,194			(8,585)		(29,857)
Income from discontinued operations					158,444		-			126,437			11,370			-		20,637
Net income (loss)					264,156		98,156			149,241			34,564			(8,585)		(9,220)
Less net (income) loss attributable to
	noncontrolling interests in:
	Consolidated subsidiaries				(6,610)		(2,092)			-			97			-		(4,615)
	Operating Partnership				(14,837)		-			-			-			-		(14,837)
	Preferred unit distributions of the
		Operating Partnership			(1,403)		-			-			-			-		(1,403)
Net income (loss) attributable to
	Vornado				241,306		96,064			149,241			34,661			(8,585)		(30,075)
Interest and debt expense(2)					183,241		46,823			33,280			17,499			34,526		51,113
Depreciation and amortization(2)					177,593		62,905			35,071			21,345			33,160		25,112
Income tax expense (benefit)(2)					3,850		871			(25)			-			(11,118)		14,122
EBITDA(1)				$	605,990	$	206,663	(3)	$	217,567	(4)	$	73,505	(5)	$	47,983	$	60,272	(6)
See notes on page 38.

23. Segment Information – continued

(Amounts in thousands)			For the Nine Months Ended September 30, 2013
												Retail
				Total		New York			Washington, DC			Properties			Toys		Other
Property rentals				$	1,521,127	$	839,349		$	338,742		$	189,964		$	-	$	153,072
Straight-line rent adjustments					47,989		27,289			4,242			3,741			-		12,717
Amortization of acquired below-market
	leases, net				40,326		26,184			1,543			8,669			-		3,930
Total rentals					1,609,442		892,822			344,527			202,374			-		169,719
Tenant expense reimbursements					236,580		128,598			31,264			63,601			-		13,117
Cleveland Medical Mart development project					34,026		-			-			-			-		34,026
Fee and other income:
	BMS cleaning fees				49,071		63,192			-			-			-		(14,121)
	Signage revenue				23,566		23,566			-			-			-		-
	Management and leasing fees				19,675		7,533			11,529			1,170			-		(557)
	Lease termination fees				87,587		24,986			1,417			59,797			-		1,387
	Other income				26,431		4,550			17,915			1,448			-		2,518
Total revenues					2,086,378		1,145,247			406,652			328,390			-		206,089
Operating expenses					784,031		478,318			145,258			98,374			-		62,081
Depreciation and amortization					400,952		203,679			92,678			47,935			-		56,660
General and administrative					157,155		25,552			20,655			14,824			-		96,124
Cleveland Medical Mart development project					29,764		-			-			-			-		29,764
Acquisition related costs					6,769		-			-			-			-		6,769
Total expenses					1,378,671		707,549			258,591			161,133			-		251,398
Operating income (loss)					707,707		437,698			148,061			167,257			-		(45,309)
(Loss) applicable to Toys					(69,311)		-			-			-			(69,311)		-
Income (loss) from partially owned entities					23,691		14,020			(6,545)			1,512			-		14,704
Income from Real Estate Fund					73,947		-			-			-			-		73,947
Interest and other investment (loss)
	income, net				(32,933)		4,076			99			5			-		(37,113)
Interest and debt expense					(363,128)		(125,991)			(83,350)			(34,523)			-		(119,264)
Net (loss) gain on disposition of wholly
	owned and partially owned assets				(20,581)		-			-			1,377			-		(21,958)
Income (loss) before income taxes					319,392		329,803			58,265			135,628			(69,311)		(134,993)
Income tax expense					(6,172)		(1,298)			(1,949)			(1,480)			-		(1,445)
Income (loss) from continuing operations					313,220		328,505			56,316			134,148			(69,311)		(136,438)
Income from discontinued operations					290,279		-			-			290,267			-		12
Net income (loss)					603,499		328,505			56,316			424,415			(69,311)		(136,426)
Less net income attributable to
	noncontrolling interests in:
	Consolidated subsidiaries				(50,049)		(9,518)			-			(3,079)			-		(37,452)
	Operating Partnership				(27,814)		-			-			-			-		(27,814)
	Preferred unit distributions of the
		Operating Partnership			(1,146)		-			-			-			-		(1,146)
Net income (loss) attributable to
	Vornado				524,490		318,987			56,316			421,336			(69,311)		(202,838)
Interest and debt expense(2)					551,357		163,579			93,715			40,057			119,347		134,659
Depreciation and amortization(2)					549,072		220,280			105,799			52,440			103,732		66,821
Income tax expense(2)					18,101		1,444			2,134			1,480			10,959		2,084
EBITDA(1)				$	1,643,020	$	704,290	(3)	$	257,964	(4)	$	515,313	(5)	$	164,727	$	726	(6)
See notes on page 38.

23. Segment Information – continued

(Amounts in thousands)			For the Nine Months Ended September 30, 2012
											Retail
			Total		New York			Washington, DC			Properties			Toys		Other
Property rentals			$	1,443,478	$	735,587		$	356,459		$	190,671		$	-	$	160,761
Straight-line rent adjustments				53,169		42,334			4,382			5,265			-		1,188
Amortization of acquired below-market
	leases, net			39,569		23,776			1,537			9,989			-		4,267
Total rentals				1,536,216		801,697			362,378			205,925			-		166,216
Tenant expense reimbursements				220,679		118,861			30,471			61,307			-		10,040
Cleveland Medical Mart development project				184,014		-			-			-			-		184,014
Fee and other income:
	BMS cleaning fees			49,437		70,476			-			-			-		(21,039)
	Signage revenue			14,252		14,252			-			-			-		-
	Management and leasing fees			16,534		4,037			9,782			2,640			-		75
	Lease termination fees			1,172		334			256			74			-		508
	Other income			24,494		3,449			18,846			1,232			-		967
Total revenues				2,046,798		1,013,106			421,733			271,178			-		340,781
Operating expenses				749,213		447,910			143,923			97,154			-		60,226
Depreciation and amortization				381,270		168,391			107,395			51,877			-		53,607
General and administrative				150,578		21,980			19,849			18,803			-		89,946
Cleveland Medical Mart development project				177,127		-			-			-			-		177,127
Acquisition related costs				4,314		-			-			-			-		4,314
Total expenses				1,462,502		638,281			271,167			167,834			-		385,220
Operating income (loss)				584,296		374,825			150,566			103,344			-		(44,439)
Income applicable to Toys				88,696		-			-			-			88,696		-
Income (loss) from partially owned entities				53,491		20,345			(4,571)			1,040			-		36,677
Income from Real Estate Fund				37,572		-			-			-			-		37,572
Interest and other investment (loss)
	income, net			(22,984)		3,166			97			24			-		(26,271)
Interest and debt expense				(373,257)		(109,365)			(85,408)			(45,362)			-		(133,122)
Net gain on disposition of wholly owned and
	partially owned assets			4,856		-			-			-			-		4,856
Income (loss) before income taxes				372,670		288,971			60,684			59,046			88,696		(124,727)
Income tax expense				(17,319)		(2,480)			(1,277)			-			-		(13,562)
Income (loss) from continuing operations				355,351		286,491			59,407			59,046			88,696		(138,289)
Income (loss) from discontinued operations				247,297		(640)			130,979			37,456			-		79,502
Net income (loss)				602,648		285,851			190,386			96,502			88,696		(58,787)
Less net (income) loss attributable to
	noncontrolling interests in:
	Consolidated subsidiaries			(30,928)		(7,266)			-			308			-		(23,970)
	Operating Partnership			(31,445)		-			-			-			-		(31,445)
	Preferred unit distributions of the
		Operating Partnership		(9,150)		-			-			-			-		(9,150)
Net income (loss) attributable to
	Vornado			531,125		278,585			190,386			96,810			88,696		(123,352)
Interest and debt expense(2)				567,265		140,294			99,486			58,039			103,388		166,058
Depreciation and amortization(2)				552,794		188,480			122,987			65,751			100,371		75,205
Income tax expense(2)				50,076		2,677			1,532			-			17,982		27,885
EBITDA(1)			$	1,701,260	$	610,036	(3)	$	414,391	(4)	$	220,600	(5)	$	310,437	$	145,796	(6)
See notes on the following page.

23. 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				For the Nine Months
				Ended September 30,				Ended September 30,
	(Amounts in thousands)			2013		2012		2013		2012
	Office			$	172,367	$	139,894	$	476,849	$	418,414
	Retail				59,782		46,165		177,394		135,399
	Alexander's (decrease due to sale of Kings Plaza
		in November 2012)			10,387		13,080		31,141		39,477
	Hotel Pennsylvania				8,494		7,524		18,906		16,746
		Total New York		$	251,030	$	206,663	$	704,290	$	610,036
(4)	The elements of "Washington, DC" EBITDA are summarized below.
				For the Three Months				For the Nine Months
				Ended September 30,				Ended September 30,
	(Amounts in thousands)			2013		2012		2013		2012
	Office, excluding the Skyline Properties (a)			$	69,220	$	197,009	$	202,463	$	350,296
	Skyline properties				6,841		9,936		22,546		32,127
		Total Office			76,061		206,945		225,009		382,423
	Residential				10,881		10,622		32,955		31,968
		Total Washington, DC		$	86,942	$	217,567	$	257,964	$	414,391
	(a)		The three and nine months ended September 30, 2012, includes a $126,621 net gain on sale of real estate.
(5)	The elements of "Retail Properties" EBITDA are summarized below.
				For the Three Months				For the Nine Months
				Ended September 30,				Ended September 30,
	(Amounts in thousands)			2013		2012		2013		2012
	Strip shopping centers(a)			$	59,175	$	49,378	$	264,065	$	148,554
	Regional malls(b)				15,406		24,127		251,248		72,046
		Total Retail properties		$	74,581	$	73,505	$	515,313	$	220,600
	(a)		The three and nine months ended September 30, 2013, includes $16,087 and $81,806, respectively, of net gains on sale of real estate and the nine months ended also includes $59,599 of income pursuant to a settlement agreement with Stop & Shop.
	(b)		The nine months ended September 30, 2013, includes a $202,275 net gain on sale of the Green Acres Mall.

23. Segment Information – continued

	Notes to preceding tabular information - continued:
(6)	The elements of "other" EBITDA are summarized below.
				For the Three Months				For the Nine Months
				Ended September 30,				Ended September 30,
	(Amounts in thousands)			2013		2012		2013		2012
	Our share of Real Estate Fund:
		Income before net realized/unrealized gains		$	1,997	$	1,874	$	1,746	$	4,162
		Net unrealized gains			3,092		1,389		14,869		8,384
		Net realized gain			2,046		-		2,046		-
		Carried interest			356		(2,541)		15,965		-
	Total				7,491		722		34,626		12,546
	Merchandise Mart Building, 7 West 34th Street and trade shows				15,006		13,869		52,167		46,518
	555 California Street				10,720		10,714		32,371		31,406
	India real estate ventures				695		1,841		4,708		1,718
	LNR(a)				-		18,773		20,443		46,006
	Lexington(b)				-		7,859		6,931		24,780
	Other investments				5,330		9,280		14,207		30,226
					39,242		63,058		165,453		193,200
	Corporate general and administrative expenses(c)				(23,467)		(22,811)		(71,054)		(66,940)
	Investment income and other, net(c)				11,108		6,854		39,153		30,900
	Net gain on sale of marketable securities				31,741		-		31,741		3,582
	(Loss) income from the mark-to-market of J.C. Penney
		derivative position			(20,012)		4,344		(33,487)		(53,343)
	Loss on sale of J.C. Penney common shares				(18,114)		-		(54,914)		-
	Non-cash impairment loss on J.C. Penney common shares				-		-		(39,487)		-
	Acquisition related costs				(2,818)		(1,070)		(6,769)		(4,314)
	Net gain on sale of residential condominiums				134		-		1,139		1,274
	Merchandise Mart discontinued operations (including
		net gains on sale of assets)			(81)		32,087		2,065		88,488
	Verde Realty impairment loss				-		(4,936)		-		(4,936)
	Severance costs (primarily reduction in force at
		the Merchandise Mart)			-		(1,014)		(4,154)		(1,520)
	Net income attributable to noncontrolling interests in
		the Operating Partnership			(5,032)		(14,837)		(27,814)		(31,445)
	Preferred unit distributions of the Operating Partnership				(12)		(1,403)		(1,146)		(9,150)
				$	12,689	$	60,272	$	726	$	145,796
	(a)		On April 22, 2013, LNR was sold (see page 14 for details).
	(b)		In the first quarter of 2013, we began accounting for our investment in Lexington as a marketable equity security - available for sale (see page 12 for details).
	(c)		The amounts in these captions (for this table only) exclude income(expense) from the mark-to-market of our deferred compensation plan.