Redeemable Noncontrolling Interests

12 Months Ended

Dec. 31, 2013

Redeemable Noncontrolling Interests [Abstract]

11. Redeemable Noncontrolling Interests

Redeemable noncontrolling interests on our consolidated balance sheets are primarily comprised of Class A Operating Partnership units held by third parties and 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. 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 redeemable noncontrolling interests as of December 31, 2013 and 2012.


(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		2013			2012	2013	2012	Preference		Rate
Common:
	Class A	$	1,002,620	$	898,152	11,292,038	11,215,682		n/a	$	2.92

Perpetual Preferred: ⁽¹⁾
	5.00% D-16 Cumulative Redeemable	$	1,000	$	1,000	1	1	$	1,000,000.00	$	50,000.00
	6.875% D-15 Cumulative Redeemable ⁽²⁾		-		45,000	-	1,800,000	$	n/a	$	n/a
		$	1,000	$	46,000	1	1,800,001

(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)	On May 9, 2013, we redeemed all of the outstanding 6.875% Series D-15 Cumulative Redeemable Preferred units with an aggregate face amount of $45,000 for $36,900 in cash, plus accrued and unpaid distributions through the date of redemption.

Below is a table summarizing the activity of redeemable noncontrolling interests.

	(Amounts in thousands)
	Balance at December 31, 2011	$	1,160,677
	Net income		45,263
	Other comprehensive loss		(6,707)
	Distributions		(54,315)
	Redemption of Class A units for common shares, at redemption value		(89,762)
	Adjustment to carry redeemable Class A units at redemption value		52,117
	Redemption of Series D-10 and Series D-14 redeemable units		(168,300)
	Other, net		5,179
	Balance at December 31, 2012		944,152
	Net income		24,817
	Other comprehensive income		5,296
	Distributions		(34,053)
	Redemption of Class A units for common shares, at redemption value		(25,317)
	Adjustment to carry redeemable Class A units at redemption value		108,252
	Redemption of Series D-15 redeemable units		(36,900)
	Other, net		17,373
	Balance at December 31, 2013	$	1,003,620

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 $55,097,000 and $55,011,000 as of December 31, 2013 and 2012, respectively.