Segment Information (Tables)

3 Months Ended

Mar. 31, 2015


(Amounts in thousands)		For the Three Months Ended March 31, 2015
			Total		New York			Washington, DC			Other
Total revenues			$	606,802	$	399,513		$	133,968		$	73,321
Total expenses				439,088		252,760			92,997			93,331
Operating income (loss)				167,714		146,753			40,971			(20,010)
(Loss) income from partially owned entities				(2,405)		(5,663)			131			3,127
Income from real estate fund investments				24,089		-			-			24,089
Interest and other investment income, net				10,792		1,862			13			8,917
Interest and debt expense				(91,674)		(45,351)			(18,160)			(28,163)
Net gain on disposition of wholly owned and partially
	owned assets			1,860		-			-			1,860
Income (loss) before income taxes				110,376		97,601			22,955			(10,180)
Income tax (expense) benefit				(971)		(943)			674			(702)
Income (loss) from continuing operations				109,405		96,658			23,629			(10,882)
Income from discontinued operations				15,841		-			-			15,841
Net income				125,246		96,658			23,629			4,959
Less net income attributable to noncontrolling interests				(21,169)		(1,506)			-			(19,663)
Net income (loss) attributable to Vornado				104,077		95,152			23,629			(14,704)
Interest and debt expense⁽²⁾				114,675		58,667			21,512			34,496
Depreciation and amortization⁽²⁾				156,450		94,124			40,752			21,574
Income tax (benefit) expense ⁽²⁾				(739)		1,002			(2,636)			895
EBITDA⁽¹⁾			$	374,463	$	248,945	⁽³⁾	$	83,257	⁽⁴⁾	$	42,261	⁽⁵⁾

(Amounts in thousands)		For the Three Months Ended March 31, 2014
		Total		New York			Washington, DC			Other
Total revenues		$	562,381	$	361,184		$	135,278		$	65,919
Total expenses			417,140		237,734			89,572			89,834
Operating income (loss)			145,241		123,450			45,706			(23,915)
Income (loss) from partially owned entities			1,979		1,566			(1,266)			1,679
Income from real estate fund investments			18,148		-			-			18,148
Interest and other investment income, net			11,850		1,441			36			10,373
Interest and debt expense			(96,312)		(42,839)			(19,347)			(34,126)
Net gain on disposition of wholly owned and partially
	owned assets		9,635		-			-			9,635
Income (loss) before income taxes			90,541		83,618			25,129			(18,206)
Income tax (expense) benefit			(851)		(969)			199			(81)
Income (loss) from continuing operations			89,690		82,649			25,328			(18,287)
Income from discontinued operations			8,466		5,867			-			2,599
Net income (loss)			98,156		88,516			25,328			(15,688)
Less net income attributable to noncontrolling interests			(15,439)		(1,405)			-			(14,034)
Net income (loss) attributable to Vornado			82,717		87,111			25,328			(29,722)
Interest and debt expense⁽²⁾			170,952		58,068			22,798			90,086
Depreciation and amortization⁽²⁾			196,339		87,587			36,150			72,602
Income tax expense (benefit)⁽²⁾			19,831		1,032			(189)			18,988
EBITDA⁽¹⁾		$	469,839	$	233,798	⁽³⁾	$	84,087	⁽⁴⁾	$	151,954	⁽⁵⁾


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
			Ended March 31,
	(Amounts in thousands)		2015		2014
	Office		$	159,359	$	157,879
	Retail			81,305		66,195
	Alexander's			10,407		10,430
	Hotel Pennsylvania			(2,126)		(706)
		Total New York	$	248,945	$	233,798



(4)	The elements of "Washington, DC" EBITDA are summarized below.

			For the Three Months
			Ended March 31,
	(Amounts in thousands)		2015		2014
	Office, excluding the Skyline Properties		$	67,385	$	67,257
	Skyline properties			6,055		6,499
		Total Office		73,440		73,756
	Residential			9,817		10,331
		Total Washington, DC	$	83,257	$	84,087

Details of Other EBITDA


	Notes to preceding tabular information - continued:


(5)	The elements of "other" EBITDA are summarized below.

				For the Three Months
				Ended March 31,
	(Amounts in thousands)			2015		2014
	Our share of Real Estate Fund:
		Income before net realized/unrealized gains		$	1,614	$	1,982
		Net realized/unrealized gains on investments			5,548		3,542
		Carried interest			3,388		1,775
	Total				10,550		7,299
	The Mart and trade shows				21,041		19,087
	555 California Street				12,401		12,066
	India real estate ventures				1,841		1,824
	Our share of Toys "R" Us^(a)				-		83,550
	Other investments				9,109		9,447
					54,942		133,273
	Corporate general and administrative expenses^(b)				(35,942)		(25,982)
	Investment income and other, net^(b)				8,762		8,073
	Urban Edge Properties and residual retail properties discontinued operations^(c)				19,907		32,100
	Acquisition and transaction related costs				(1,981)		(1,285)
	Net gain on sale of residential condominiums and a land parcel				1,860		9,635
	Net income attributable to noncontrolling interests in the Operating Partnership				(5,287)		(3,860)
				$	42,261	$	151,954


	(a)		As a result of our investment being reduced to zero, we suspended equity method accounting in the third quarter of 2014 (see Note 7 - Investments in Partially Owned Entities). The three months ended March 31, 2014 includes an impairment loss of $75,196.

	(b)		The amounts in these captions (for this table only) exclude income/expense from the mark-to-market of our deferred compensation plan of $2,859 and $4,400 for the three months ended March 31, 2015 and 2014, respectively. The three months ended March 31, 2015 include $8,817 from the acceleration of the recognition of compensation expense related to 2013-2015 Out-Performance Plans due to the modification of the vesting criteria of awards such that they will fully vest at age 65. The accelerated expense will result in lower general and administrative expense for the remainder of 2015 of $2,600 and $6,217 thereafter.

	(c)		The three months ended March 31, 2015 and 2014, include $22,645 and $499, 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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