Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of Segment Information [Table Text Block]


(Amounts in thousands)		For the Three Months Ended September 30, 2014
											Retail
			Total		New York			Washington, DC			Properties			Toys		Other
Total revenues			$	670,909	$	394,579		$	133,541		$	82,442		$	-	$	60,347
Total expenses				450,310		243,314			88,375			44,466			-		74,155
Operating income (loss)				220,599		151,265			45,166			37,976			-		(13,808)
(Loss) income from partially owned
	entities, including Toys			(25,663)		5,810			(1,411)			371			(18,418)		(12,015)
Income from Real Estate Fund				24,160		-			-			-			-		24,160
Interest and other investment
	income, net			7,602		1,859			15			9			-		5,719
Interest and debt expense				(115,120)		(43,061)			(18,685)			(10,056)			-		(43,318)
Net gain on disposition of wholly owned and
	partially owned assets			2,665		-			-			-			-		2,665
Income (loss) before income taxes				114,243		115,873			25,085			28,300			(18,418)		(36,597)
Income tax expense				(3,177)		(802)			(130)			(525)			-		(1,720)
Income (loss) from continuing operations				111,066		115,071			24,955			27,775			(18,418)		(38,317)
Income from discontinued operations				58,131		-			-			57,499			-		632
Net income (loss)				169,197		115,071			24,955			85,274			(18,418)		(37,685)
Less net income attributable to
	noncontrolling interests			(17,673)		(2,690)			-			(76)			-		(14,907)
Net income (loss) attributable to Vornado				151,524		112,381			24,955			85,198			(18,418)		(52,592)
Interest and debt expense⁽²⁾				160,252		58,010			22,208			11,205			22,471		46,358
Depreciation and amortization⁽²⁾				160,270		79,446			36,411			15,256			9,923		19,234
Income tax expense (benefit) ⁽²⁾				2,232		746			145			525			(1,536)		2,352
EBITDA⁽¹⁾			$	474,278	$	250,583	⁽³⁾	$	83,719	⁽⁴⁾	$	112,184	⁽⁵⁾	$	12,440	$	15,352	⁽⁶⁾


(Amounts in thousands)		For the Three Months Ended September 30, 2013
											Retail
			Total		New York			Washington, DC			Properties			Toys		Other
Total revenues			$	668,989	$	388,747		$	137,604		$	81,439		$	-	$	61,199
Total expenses				434,138		223,992			87,612			45,461			-		77,073
Operating income (loss)				234,851		164,755			49,992			35,978			-		(15,874)
(Loss) income from partially owned
	entities, including Toys			(32,756)		4,189			(2,003)			188			(34,209)		(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				(119,676)		(42,349)			(27,246)			(10,834)			-		(39,247)
Net gain on disposition of wholly owned and
	partially owned assets			15,138		-			-			1,377			-		13,761
Income (loss) before income taxes				110,195		128,063			20,760			26,710			(34,209)		(31,129)
Income tax expense				(2,222)		(65)			(766)			(731)			-		(660)
Income (loss) from continuing operations				107,973		127,998			19,994			25,979			(34,209)		(31,789)
Income from discontinued operations				24,278		2,883			-			21,149			-		246
Net income (loss)				132,251		130,881			19,994			47,128			(34,209)		(31,543)
Less net income attributable to
	noncontrolling interests			(28,877)		(6,556)			-			(2,970)			-		(19,351)
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 32.


(Amounts in thousands)		For the Nine Months Ended September 30, 2014
											Retail
			Total		New York			Washington, DC			Properties			Toys		Other
Total revenues			$	1,997,702	$	1,151,395		$	403,645		$	253,623		$	-	$	189,039
Total expenses				1,383,618		716,125			265,299			173,945			-		228,249
Operating income (loss)				614,084		435,270			138,346			79,678			-		(39,210)
(Loss) income from partially owned
	entities, including Toys			(77,426)		16,372			(4,925)			1,250			(74,162)		(15,961)
Income from Real Estate Fund				142,418		-			-			-			-		142,418
Interest and other investment
	income, net			28,930		4,979			93			26			-		23,832
Interest and debt expense				(341,613)		(134,970)			(56,692)			(28,565)			-		(121,386)
Net gain on disposition of wholly
	owned and partially owned assets			13,205		-			-			-			-		13,205
Income (loss) before income taxes				379,598		321,651			76,822			52,389			(74,162)		2,898
Income tax expense				(8,358)		(2,997)			(46)			(1,575)			-		(3,740)
Income (loss) from continuing operations				371,240		318,654			76,776			50,814			(74,162)		(842)
Income from discontinued operations				61,800		-			-			60,993			-		807
Net income (loss)				433,040		318,654			76,776			111,807			(74,162)		(35)
Less net income attributable to
	noncontrolling interests			(101,791)		(7,203)			-			(114)			-		(94,474)
Net income (loss) attributable to Vornado				331,249		311,451			76,776			111,693			(74,162)		(94,509)
Interest and debt expense⁽²⁾				510,724		180,150			67,469			31,989			100,549		130,567
Depreciation and amortization⁽²⁾				530,052		241,040			108,367			56,387			64,533		59,725
Income tax expense ⁽²⁾				21,489		3,069			88			1,575			12,106		4,651
EBITDA⁽¹⁾			$	1,393,514	$	735,710	⁽³⁾	$	252,700	⁽⁴⁾	$	201,644	⁽⁵⁾	$	103,026	$	100,434	⁽⁶⁾

(Amounts in thousands)		For the Nine Months Ended September 30, 2013
										Retail
		Total		New York			Washington, DC			Properties			Toys		Other
Total revenues		$	2,058,525	$	1,129,248		$	406,652		$	303,704		$	-	$	218,921
Total expenses			1,362,975		700,652			258,591			140,343			-		263,389
Operating income (loss)			695,550		428,596			148,061			163,361			-		(44,468)
(Loss) income from partially owned
	entities, including Toys		(45,620)		14,020			(6,545)			1,512			(69,311)		14,704
Income from Real Estate Fund			73,947		-			-			-			-		73,947
Interest and other investment (loss)
	income, net		(32,935)		4,076			99			3			-		(37,113)
Interest and debt expense			(360,679)		(125,428)			(83,350)			(32,637)			-		(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			309,682		321,264			58,265			133,616			(69,311)		(134,152)
Income tax expense			(6,172)		(1,298)			(1,949)			(1,480)			-		(1,445)
Income (loss) from continuing operations			303,510		319,966			56,316			132,136			(69,311)		(135,597)
Income (loss) from discontinued operations			299,989		8,539			-			292,279			-		(829)
Net income (loss)			603,499		328,505			56,316			424,415			(69,311)		(136,426)
Less net income attributable to
	noncontrolling interests		(79,009)		(9,518)			-			(3,079)			-		(66,412)
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 the following page.


	Notes to preceding tabular information:

(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." We consider EBITDA a supplemental non-GAAP financial 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 expense (benefit) 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)				2014		2013			2014		2013
	Office^(a)				$	159,568	$	172,367		$	480,280	$	476,849
	Retail					71,327		59,782			205,469		177,394
	Alexander's					10,387		10,387			31,088		31,141
	Hotel Pennsylvania					9,301		8,494			18,873		18,906
		Total New York			$	250,583	$	251,030		$	735,710	$	704,290


	(a)		The three months ended September 30, 2014 and 2013, includes $2,140 and $12,029, respectively, of lease termination income, net. The nine months ended September 30, 2014 and 2013, includes $4,543 and $17,373, respectively, of lease termination income, net.


(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)				2014		2013			2014		2013
	Office, excluding the Skyline Properties				$	65,904	$	69,220		$	200,218	$	202,463
	Skyline properties					7,698		6,841			21,270		22,546
		Total Office				73,602		76,061			221,488		225,009
	Residential					10,117		10,881			31,212		32,955
		Total Washington, DC			$	83,719	$	86,942		$	252,700	$	257,964


(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)				2014		2013			2014		2013
	Strip shopping centers^(a)				$	97,122	$	59,175		$	178,499	$	264,065
	Regional malls^(b)					15,062		15,406			23,145		251,248
		Total Retail properties			$	112,184	$	74,581		$	201,644	$	515,313


	(a)		The three months ended September 30, 2014 and 2013, includes $57,796 and $16,087, respectively, of net gains on sale of real estate. The nine months ended September 30, 2014 and 2013, includes $57,796 and $81,806, respectively, of net gains on sale of real estate and the nine months ended September 30, 2013 also includes $59,599 of income pursuant to a settlement agreement with Stop & Shop.

	(b)		The nine months ended September 30, 2014, includes a $20,000 non-cash impairment loss on Springfield Town Center. The nine months ended September 30, 2013, includes a $202,275 net gain on sale of the Green Acres Mall.

Details of Other EBITDA [Table Text Block]


	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)				2014			2013			2014			2013
	Our share of Real Estate Fund:
		Income before net realized/unrealized gains			$	2,059		$	2,086		$	6,676		$	5,737
		Net realized gains on exited investments				12,896			2,046			31,663			2,046
		Previously recorded unrealized gains on exited investments				(12,397)			-			(12,579)			-
		Net unrealized gains on held investments				4,583			3,092			13,805			14,869
		Carried interest				8,431			267			21,636			11,974
	Total					15,572			7,491			61,201			34,626
	The Mart and trade shows					19,497			14,925			61,038			54,232
	555 California Street					11,994			10,720			35,566			32,371
	India real estate ventures					2,651			695			4,574			4,708
	LNR^(a)					-			-			-			20,443
	Other investments					4,618			5,330			13,825			21,138
						54,332			39,161			176,204			167,518
	Corporate general and administrative expenses^(b)					(22,948)			(23,467)			(71,952)			(71,054)
	Investment income and other, net^(b)					6,659			11,108			22,764			39,153
	Suffolk Downs impairment loss and loan loss reserve					(10,263)			-			(10,263)			-
	Acquisition and transaction related costs^(c)					(7,105)			(2,818)			(12,972)			(6,769)
	Net gain on sale of residential condominiums and a land parcel					2,665			134			13,205			1,139
	Net gain on sale of marketable securities					-			31,741			-			31,741
	Loss from the mark-to-market of J.C. Penney
		derivative position				-			(20,012)			-			(33,487)
	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)
	Severance costs (primarily reduction-in-force at the Mart)					-			-			-			(4,154)
	Net income attributable to noncontrolling interests in
		the Operating Partnership				(7,975)			(5,032)			(16,514)			(27,814)
	Preferred unit distributions of the Operating Partnership					(13)			(12)			(38)			(1,146)
				$	15,352		$	12,689		$	100,434		$	726


	(a)		On April 19, 2013, LNR was sold for $1.053 billion.

	(b)		The amounts in these captions (for this table only) exclude income/expense from the mark-to-market of our deferred compensation plan of $1,352 and $269 for the three months ended September 30, 2014 and 2013, respectively, and $8,132 and $6,207 for the nine months ended September 30, 2014 and 2013, respectively.

	(c)		The three and nine months ended September 30, 2014, includes $5,828 and $9,343, respectively, of transaction costs related to the spin-off of our strip shopping centers and malls (see Note 1 - Organization).

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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