Segment Information (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Segment Information [Table Text Block]

Below is a summary of net income and a reconciliation of net income to EBITDA⁽¹⁾ by segment for the three and six months ended June 30, 2016 and 2015.

(Amounts in thousands)		For the Three Months Ended June 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	621,708	$	425,770		$	127,468		$	68,470
Total expenses				434,894		268,135			89,106			77,653
Operating income (loss)				186,814		157,635			38,362			(9,183)
Income (loss) from partially owned entities				642		(1,001)			(2,958)			4,601
Income from real estate fund investments				16,389		-			-			16,389
Interest and other investment income, net				10,236		1,214			34			8,988
Interest and debt expense				(105,576)		(56,395)			(19,817)			(29,364)
Net gain on disposition of wholly owned and partially
	owned assets			159,511		159,511			-			-
Income (loss) before income taxes				268,016		260,964			15,621			(8,569)
Income tax expense				(2,109)		(816)			(318)			(975)
Income (loss) from continuing operations				265,907		260,148			15,303			(9,544)
Income from discontinued operations				2,475		-			-			2,475
Net income (loss)				268,382		260,148			15,303			(7,069)
Less net income attributable to noncontrolling interests				(27,556)		(3,397)			-			(24,159)
Net income (loss) attributable to Vornado				240,826		256,751			15,303			(31,228)
Interest and debt expense⁽²⁾				127,799		71,171			22,641			33,987
Depreciation and amortization⁽²⁾				173,352		111,314			39,305			22,733
Income tax expense⁽²⁾				4,704		889			2,205			1,610
EBITDA⁽¹⁾			$	546,681	$	440,125	⁽³⁾	$	79,454	⁽⁴⁾	$	27,102	⁽⁵⁾

(Amounts in thousands)	For the Three Months Ended June 30, 2015
		Total		New York			Washington, DC			Other
Total revenues		$	616,288	$	414,262		$	134,856		$	67,170
Total expenses			422,897		250,298			98,661			73,938
Operating income (loss)			193,391		163,964			36,195			(6,768)
(Loss) income from partially owned entities			(5,641)		3,176			(1,805)			(7,012)
Income from real estate fund investments			26,368		-			-			26,368
Interest and other investment income, net			5,666		1,892			13			3,761
Interest and debt expense			(92,092)		(47,173)			(17,483)			(27,436)
Income (loss) before income taxes			127,692		121,859			16,920			(11,087)
Income tax benefit (expense)			88,072		(1,095)			(466)			89,633
Income from continuing operations			215,764		120,764			16,454			78,546
Loss from discontinued operations			(364)		-			-			(364)
Net income			215,400		120,764			16,454			78,182
Less net income attributable to noncontrolling interests			(29,384)		(2,552)			-			(26,832)
Net income attributable to Vornado			186,016		118,212			16,454			51,350
Interest and debt expense⁽²⁾			115,073		61,057			20,891			33,125
Depreciation and amortization⁽²⁾			163,245		95,567			47,803			19,875
Income tax (benefit) expense ⁽²⁾			(87,653)		1,152			486			(89,291)
EBITDA⁽¹⁾		$	376,681	$	275,988	⁽³⁾	$	85,634	⁽⁴⁾	$	15,059	⁽⁵⁾

(Amounts in thousands)		For the Six Months Ended June 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	1,234,745	$	836,595		$	255,480		$	142,670
Total expenses				1,048,211		537,730			345,671			164,810
Operating income (loss)				186,534		298,865			(90,191)			(22,140)
(Loss) income from partially owned entities				(3,598)		(4,564)			(5,001)			5,967
Income from real estate fund investments				27,673		-			-			27,673
Interest and other investment income, net				13,754		2,329			92			11,333
Interest and debt expense				(206,065)		(110,981)			(35,752)			(59,332)
Net gain on disposition of wholly owned and partially
	owned assets			160,225		159,511			-			714
Income (loss) before income taxes				178,523		345,160			(130,852)			(35,785)
Income tax expense				(4,940)		(1,775)			(582)			(2,583)
Income (loss) from continuing operations				173,583		343,385			(131,434)			(38,368)
Income from discontinued operations				3,191		-			-			3,191
Net income (loss)				176,774		343,385			(131,434)			(35,177)
Less net income attributable to noncontrolling interests				(29,747)		(6,826)			-			(22,921)
Net income (loss) attributable to Vornado				147,027		336,559			(131,434)			(58,098)
Interest and debt expense⁽²⁾				253,919		142,369			42,047			69,503
Depreciation and amortization⁽²⁾				348,163		219,717			81,986			46,460
Income tax expense ⁽²⁾				7,965		1,979			2,470			3,516
EBITDA⁽¹⁾			$	757,074	$	700,624	⁽³⁾	$	(4,931)	⁽⁴⁾	$	61,381	⁽⁵⁾

(Amounts in thousands)		For the Six Months Ended June 30, 2015
		Total		New York			Washington, DC			Other
Total revenues		$	1,223,090	$	813,775		$	268,824		$	140,491
Total expenses			861,985		503,058			191,658			167,269
Operating income (loss)			361,105		310,717			77,166			(26,778)
Loss from partially owned entities			(8,384)		(2,487)			(1,674)			(4,223)
Income from real estate fund investments			50,457		-			-			50,457
Interest and other investment income, net			16,458		3,754			26			12,678
Interest and debt expense			(183,766)		(92,524)			(35,643)			(55,599)
Net gain on disposition of wholly owned and partially
	owned assets		1,860		-			-			1,860
Income (loss) before income taxes			237,730		219,460			39,875			(21,605)
Income tax benefit (expense)			87,101		(2,038)			208			88,931
Income from continuing operations			324,831		217,422			40,083			67,326
Income from discontinued operations			15,815		-			-			15,815
Net income			340,646		217,422			40,083			83,141
Less net income attributable to noncontrolling interests			(50,553)		(4,058)			-			(46,495)
Net income attributable to Vornado			290,093		213,364			40,083			36,646
Interest and debt expense⁽²⁾			229,748		119,724			42,403			67,621
Depreciation and amortization⁽²⁾			319,695		189,691			88,555			41,449
Income tax (benefit) expense⁽²⁾			(88,392)		2,154			(2,150)			(88,396)
EBITDA⁽¹⁾		$	751,144	$	524,933	⁽³⁾	$	168,891	⁽⁴⁾	$	57,320	⁽⁵⁾


See notes on the following pages.

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 (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.

	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Office^(a)		$	163,060	$	165,031	$	315,789	$	319,340
	Retail			95,615		86,151		188,938		167,456
	Residential			6,337		5,709		12,687		10,759
	Alexander's			11,805		10,241		23,374		20,648
	Hotel Pennsylvania			3,797		8,856		325		6,730
				280,614		275,988		541,113		524,933
	Gain on sale of 47% ownership interest
		in 7 West 34th Street		159,511		-		159,511		-
		Total New York	$	440,125	$	275,988	$	700,624	$	524,933


	(a)	The three and six months ended June 30, 2015 include $3,304 and $6,844, respectively, of EBITDA from 20 Broad Street which was sold in December 2015. Excluding these items, EBITDA was $161,727 and $312,496, respectively.


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

	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Office, excluding the Skyline properties ^(a)		$	63,757	$	68,509	$	124,573	$	135,878
	Skyline properties			4,863		6,984		9,955		13,039
	Skyline properties impairment loss			-		-		(160,700)		-
		Total Office		68,620		75,493		(26,172)		148,917
	Residential			10,834		10,141		21,241		19,974
		Total Washington, DC	$	79,454	$	85,634	$	(4,931)	$	168,891


	(a)	The three and six months ended June 30, 2015 include $2,067 and $3,990, respectively, of EBITDA from 1750 Pennsylvania Avenue which was sold in September 2015. Excluding these items, EBITDA was $66,442 and $131,888, respectively.

Details of Other EBITDA [Table Text Block]

Notes to preceding tabular information - continued:

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

	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Our share of real estate fund investments:
		Income before net realized/unrealized gains	$	1,526	$	2,671	$	3,757	$	4,285
		Net realized/unrealized gains on investments		3,890		4,916		5,451		10,464
		Carried interest		2,128		2,909		3,647		6,297
	Total			7,544		10,496		12,855		21,046
	theMART (including trade shows)			25,965		22,144		48,993		43,185
	555 California Street			12,117		12,831		23,732		25,232
	India real estate ventures			430		375		1,749		2,216
	Other investments			14,741		9,424		27,063		16,183
				60,797		55,270		114,392		107,862
	Corporate general and administrative expenses^{(a) (b)}			(24,239)		(23,760)		(54,845)		(59,702)
	Investment income and other, net^(a)			5,471		6,561		12,446		15,323
	Acquisition and transaction related costs			(2,879)		(4,061)		(7,486)		(6,042)
	UE and residual retail properties discontinued operations^(c)			2,483		1,540		3,204		23,797
	Our share of impairment loss on India real estate ventures			-		(14,806)		-		(14,806)
	Our share of gains on sale of real estate of partially owned entities			-		4,513		-		4,513
	Net gain on sale of residential condominiums			-		-		714		1,860
	Net income attributable to noncontrolling interests in
		the Operating Partnership		(14,531)		(10,198)		(7,044)		(15,485)
			$	27,102	$	15,059	$	61,381	$	57,320


	(a)	The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $4,359 of income and $609 of loss for the three months ended June 30, 2016 and 2015, respectively, and $2,421 and $2,250 of income for the six months ended June 30, 2016 and 2015, respectively.
	(b)	The six months ended June 30, 2015 includes a cumulative catch up of $4,542 from the acceleration of recognition of compensation expense related to the modification of the 2012-2014 Out-Performance Plans.
	(c)	The three and six months ended June 30, 2015 include $327 and $22,972, respectively, of transaction costs related to the spin-off of our strip shopping centers and malls.