Segment Information

12 Months Ended

Dec. 31, 2015

Segment Information [Abstract]

Segment Information

24. Segment Information

As a result of the spin-off of substantially all of our Retail Properties segment (see Note 7 –Dispositions), the remaining retail properties no longer meet the criteria to be a separate reportable segment. In addition, as a result of our investment in Toys being reduced to zero, we suspended equity method accounting for our investment in Toys (see Note 6 – Investments in Partially Owned Entities) and the Toys segment no longer meets the criteria to be a separate reportable segment. Accordingly, effective January 1, 2015, the Retail Properties segment and Toys have been reclassified to the Other segment. Below is a summary of net income and a reconciliation of net income to EBITDA(1) by segment for the years ended December 31, 2015, 2014 and 2013.

(Amounts in thousands)		For the Year Ended December 31, 2015
			Total		New York			Washington, DC			Other
Total revenues			$	2,502,267	$	1,695,925		$	532,812		$	273,530
Total expenses				1,742,019		1,032,015			390,921			319,083
Operating income (loss)				760,248		663,910			141,891			(45,553)
(Loss) income from partially owned entities				(12,630)		655			(5,083)			(8,202)
Income from real estate fund investments				74,081		-			-			74,081
Interest and other investment income (loss), net				26,978		7,722			(262)			19,518
Interest and debt expense				(378,025)		(194,278)			(68,727)			(115,020)
Net gain on disposition of wholly owned and partially
	owned assets			251,821		142,693			102,404			6,724
Income (loss) before income taxes				722,473		620,702			170,223			(68,452)
Income tax benefit (expense)				84,695		(4,379)			(317)			89,391
Income from continuing operations				807,168		616,323			169,906			20,939
Income from discontinued operations				52,262		-			-			52,262
Net income				859,430		616,323			169,906			73,201
Less net income attributable to noncontrolling interests				(98,996)		(13,022)			-			(85,974)
Net income (loss) attributable to Vornado				760,434		603,301			169,906			(12,773)
Interest and debt expense(2)				469,843		248,724			82,386			138,733
Depreciation and amortization(2)				664,637		394,028			179,788			90,821
Income tax (benefit) expense(2)				(85,379)		4,766			(1,610)			(88,535)
EBITDA(1)			$	1,809,535	$	1,250,819	(3)	$	430,470	(4)	$	128,246	(5)
Balance Sheet Data:
Real estate, at cost			$	18,090,137	$	10,577,078		$	4,544,842		$	2,968,217
Investments in partially owned entities				1,550,422		1,195,122			100,511			254,789
Total assets				21,143,293		12,257,774			4,536,895			4,348,624
See notes on pages 136 and 137.

(Amounts in thousands)		For the Year Ended December 31, 2014
			Total		New York			Washington, DC			Other
Total revenues			$	2,312,512	$	1,520,845		$	537,151		$	254,516
Total expenses				1,622,619		946,466			358,019			318,134
Operating income (loss)				689,893		574,379			179,132			(63,618)
(Loss) income from partially owned entities				(59,861)		20,701			(3,677)			(76,885)
Income from real estate fund investments				163,034		-			-			163,034
Interest and other investment income, net				38,752		6,711			183			31,858
Interest and debt expense				(412,755)		(183,427)			(75,395)			(153,933)
Net gain on disposition of wholly owned and partially
	owned assets			13,568		-			-			13,568
Income (loss) before income taxes				432,631		418,364			100,243			(85,976)
Income tax expense				(9,281)		(4,305)			(242)			(4,734)
Income (loss) from continuing operations				423,350		414,059			100,001			(90,710)
Income from discontinued operations				585,676		463,163			-			122,513
Net income				1,009,026		877,222			100,001			31,803
Less net income attributable to noncontrolling interests				(144,174)		(8,626)			-			(135,548)
Net income (loss) attributable to Vornado				864,852		868,596			100,001			(103,745)
Interest and debt expense(2)				654,398		241,959			89,448			322,991
Depreciation and amortization(2)				685,973		324,239			145,853			215,881
Income tax expense(2)				24,248		4,395			288			19,565
EBITDA(1)			$	2,229,471	$	1,439,189	(3)	$	335,590	(4)	$	454,692	(5)
Balance Sheet Data:
Real estate, at cost			$	16,822,358	$	9,732,818		$	4,383,418		$	2,706,122
Investments in partially owned entities				1,240,489		1,036,130			102,635			101,724
Total assets				21,157,980		10,706,476			4,300,628			6,150,876

(Amounts in thousands)		For the Year Ended December 31, 2013
			Total		New York			Washington, DC			Other
Total revenues			$	2,299,176	$	1,470,907		$	541,161		$	287,108
Total expenses				1,624,625		910,498			347,686			366,441
Operating income (loss)				674,551		560,409			193,475			(79,333)
(Loss) income from partially owned entities				(340,882)		15,527			(6,968)			(349,441)
Income from real estate fund investments				102,898		-			-			102,898
Interest and other investment (loss) income, net				(24,887)		5,357			129			(30,373)
Interest and debt expense				(425,782)		(181,966)			(102,277)			(141,539)
Net gain on disposition of wholly owned and partially
	owned assets			2,030		-			-			2,030
(Loss) income before income taxes				(12,072)		399,327			84,359			(495,758)
Income tax benefit (expense)				8,717		(2,794)			14,031			(2,520)
(Loss) income from continuing operations				(3,355)		396,533			98,390			(498,278)
Income from discontinued operations				568,095		160,314			-			407,781
Net income (loss)				564,740		556,847			98,390			(90,497)
Less net income attributable to noncontrolling interests				(88,769)		(10,786)			-			(77,983)
Net income (loss) attributable to Vornado				475,971		546,061			98,390			(168,480)
Interest and debt expense(2)				758,781		236,645			116,131			406,005
Depreciation and amortization(2)				732,757		293,974			142,409			296,374
Income tax expense (benefit)(2)				26,371		3,002			(15,707)			39,076
EBITDA(1)			$	1,993,880	$	1,079,682	(3)	$	341,223	(4)	$	572,975	(5)
Balance Sheet Data:
Real estate, at cost			$	15,392,968	$	8,422,297		$	4,243,048		$	2,727,623
Investments in partially owned entities				1,159,803		904,278			100,543			154,982
Total assets				20,018,210		9,214,055			4,098,338			6,705,817
See notes on page 136and 137.

Notes to preceding tabular information:
(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." We consider EBITDA a 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 in the reconciliation of net income to EBITDA includes our share of these items from partially owned entities.
(3)	The elements of "New York" EBITDA are summarized below.
	(Amounts in thousands)		For the Year Ended December 31,
			2015		2014		2013
	Office		$	661,579	$	622,818	$	612,009
	Retail			358,379		281,428		246,808
	Residential			22,266		21,907		20,420
	Alexander's			42,858		41,746		42,210
	Hotel Pennsylvania			23,044		30,753		30,723
	Net gains on sale of real estate(a)			142,693		440,537		127,512
		Total New York	$	1,250,819	$	1,439,189	$	1,079,682
	(a)	Net gains on sale of real estate are related to 20 Broad Street in 2015, 1740 Broadway in 2014, and 866 UN Plaza in 2013.
(4)	The elements of "Washington, DC" EBITDA are summarized below.
	(Amounts in thousands)		For the Year Ended December 31,
			2015		2014		2013
	Office, excluding the Skyline properties		$	264,864	$	266,859	$	268,373
	Skyline properties			24,224		27,150		29,499
	Net gain on sale of 1750 Pennsylvania Avenue			102,404		-		-
		Total Office		391,492		294,009		297,872
	Residential			38,978		41,581		43,351
		Total Washington, DC	$	430,470	$	335,590	$	341,223

Notes to preceding tabular information:
(5)	The elements of "Other" EBITDA are summarized below.
	(Amounts in thousands)		For the Year Ended December 31,
			2015		2014			2013
	Our share of real estate fund investments:
		Income before net realized/unrealized gains	$	8,611	$	8,056	$	7,752
		Net realized/unrealized gains on investments		14,657		37,535		23,489
		Carried interest		10,696		24,715		18,230
	Total			33,964		70,306		49,471
	theMart and trade shows			79,159		79,636		74,270
	555 California Street			49,975		48,844		42,667
	India real estate ventures			3,933		6,434		5,841
	Our share of Toys(a)			2,500		103,632		(12,081)
	Other investments			38,141		16,896		45,856
				207,672		325,748		206,024
	Corporate general and administrative expenses(b)(c)			(106,416)		(94,929)		(94,904)
	Investment income and other, net(b)			26,385		31,665		46,525
	Gains on sale of partially owned entities and other			37,666		13,000		-
	UE and residual retail properties discontinued operations			28,314		245,679		541,516
	Our share of impairment loss on India real estate ventures			(14,806)		(5,771)		-
	Acquisition and transaction related costs			(12,511)		(16,392)		(24,857)
	Net gain on sale of marketable securities, land parcels and residential condominiums			6,724		13,568		56,868
	Impairment loss and loan loss reserve on investment in Suffolk Downs			(1,551)		(10,263)		-
	Losses from the disposition of investment in J.C. Penney			-		-		(127,888)
	Severance costs (primarily reduction in force at theMart)			-		-		(5,492)
	Net income attributable to noncontrolling interests in the Operating Partnership			(43,231)		(47,613)		(24,817)
			$	128,246	$	454,692	$	572,975
	(a)	As a result of our investment being reduced to zero, we suspended equity method accounting in the third quarter of 2014 (see Note 6 - Investments in Partially Owned Entities). The years ended December 31, 2014 and 2013 include an impairment loss of $75,196 and $240,757, respectively.
	(b)	The amounts in these captions (for this table only) exclude income/expense from the mark-to-market of our deferred compensation plan of $111, $11,557 and $10,636 for the years ended December 31, 2015, 2014 and 2013, respectively.
	(c)	The year ended December 31, 2015 includes $6,217 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 2016 of $2,940 and $3,277 thereafter.