Segment Information (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2016 and 2015.

(Amounts in thousands)		For the Three Months Ended September 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	633,197	$	432,869		$	134,446		$	65,882
Total expenses				444,044		280,689			90,756			72,599
Operating income (loss)				189,153		152,180			43,690			(6,717)
Income (loss) from partially owned entities				4,127		(579)			(452)			5,158
Income from real estate fund investments				1,077		-			-			1,077
Interest and other investment income, net				6,508		1,355			49			5,104
Interest and debt expense				(98,365)		(51,212)			(18,644)			(28,509)
Income (loss) before income taxes				102,500		101,744			24,643			(23,887)
Income tax expense				(4,865)		(2,356)			(302)			(2,207)
Income (loss) from continuing operations				97,635		99,388			24,341			(26,094)
Income from discontinued operations				2,969		-			-			2,969
Net income (loss)				100,604		99,388			24,341			(23,125)
Less net income attributable to noncontrolling interests				(8,024)		(2,985)			-			(5,039)
Net income (loss) attributable to Vornado				92,580		96,403			24,341			(28,164)
Net income attributable to noncontrolling interests in the
	Operating Partnership			4,366		-			-			4,366
Interest and debt expense⁽²⁾				122,979		66,314			20,991			35,674
Depreciation and amortization⁽²⁾				172,980		111,731			37,123			24,126
Income tax expense⁽²⁾				5,102		2,445			310			2,347
EBITDA⁽¹⁾			$	398,007	$	276,893	⁽³⁾	$	82,765	⁽⁴⁾	$	38,349	⁽⁵⁾

See notes on pages 31 and 32.

(Amounts in thousands)		For the Three Months Ended September 30, 2015
			Total		New York			Washington, DC			Other
Total revenues			$	627,596	$	429,433		$	132,704		$	65,459
Total expenses				436,156		263,805			102,114			70,237
Operating income (loss)				191,440		165,628			30,590			(4,778)
(Loss) income from partially owned entities				(325)		4,010			(1,909)			(2,426)
Income from real estate fund investments				1,665		-			-			1,665
Interest and other investment income, net				3,160		1,888			34			1,238
Interest and debt expense				(95,344)		(50,480)			(16,580)			(28,284)
Net gain on disposition of wholly owned and partially
	owned assets			103,037		-			102,404			633
Income (loss) before income taxes				203,633		121,046			114,539			(31,952)
Income tax expense				(2,856)		(1,147)			(287)			(1,422)
Income (loss) from continuing operations				200,777		119,899			114,252			(33,374)
Income from discontinued operations				34,463		-			-			34,463
Net income				235,240		119,899			114,252			1,089
Less net income attributable to noncontrolling interests				(16,006)		(2,582)			-			(13,424)
Net income (loss) attributable to Vornado				219,234		117,317			114,252			(12,335)
Net income attributable to noncontrolling interests in the
	Operating Partnership			12,704		-			-			12,704
Interest and debt expense⁽²⁾				118,977		64,653			20,010			34,314
Depreciation and amortization⁽²⁾				174,209		99,206			48,132			26,871
Income tax expense ⁽²⁾				3,043		1,214			294			1,535
EBITDA⁽¹⁾			$	528,167	$	282,390	⁽³⁾	$	182,688	⁽⁴⁾	$	63,089	⁽⁵⁾

See notes on pages 31 and 32.

(Amounts in thousands)		For the Nine Months Ended September 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	1,867,942	$	1,269,464		$	389,926		$	208,552
Total expenses				1,492,255		818,419			436,427			237,409
Operating income (loss)				375,687		451,045			(46,501)			(28,857)
Income (loss) from partially owned entities				529		(5,143)			(5,453)			11,125
Income from real estate fund investments				28,750		-			-			28,750
Interest and other investment income, net				20,262		3,684			141			16,437
Interest and debt expense				(304,430)		(162,193)			(54,396)			(87,841)
Net gain on disposition of wholly owned and partially
	owned assets			160,225		159,511			-			714
Income (loss) before income taxes				281,023		446,904			(106,209)			(59,672)
Income tax expense				(9,805)		(4,131)			(884)			(4,790)
Income (loss) from continuing operations				271,218		442,773			(107,093)			(64,462)
Income from discontinued operations				6,160		-			-			6,160
Net income (loss)				277,378		442,773			(107,093)			(58,302)
Less net income attributable to noncontrolling interests				(37,771)		(9,811)			-			(27,960)
Net income (loss) attributable to Vornado				239,607		432,962			(107,093)			(86,262)
Net income attributable to noncontrolling interests in the
	Operating Partnership			11,410		-			-			11,410
Interest and debt expense⁽²⁾				376,898		208,683			63,038			105,177
Depreciation and amortization⁽²⁾				521,143		331,448			119,109			70,586
Income tax expense ⁽²⁾				13,067		4,424			2,780			5,863
EBITDA⁽¹⁾			$	1,162,125	$	977,517	⁽³⁾	$	77,834	⁽⁴⁾	$	106,774	⁽⁵⁾

(Amounts in thousands)		For the Nine Months Ended September 30, 2015
		Total		New York			Washington, DC			Other
Total revenues		$	1,850,686	$	1,243,208		$	401,528		$	205,950
Total expenses			1,298,141		766,863			293,772			237,506
Operating income (loss)			552,545		476,345			107,756			(31,556)
(Loss) income from partially owned entities			(8,709)		1,523			(3,583)			(6,649)
Income from real estate fund investments			52,122		-			-			52,122
Interest and other investment income, net			19,618		5,642			60			13,916
Interest and debt expense			(279,110)		(143,004)			(52,223)			(83,883)
Net gain on disposition of wholly owned and partially
	owned assets		104,897		-			102,404			2,493
Income (loss) before income taxes			441,363		340,506			154,414			(53,557)
Income tax benefit (expense)			84,245		(3,185)			(79)			87,509
Income from continuing operations			525,608		337,321			154,335			33,952
Income from discontinued operations			50,278		-			-			50,278
Net income			575,886		337,321			154,335			84,230
Less net income attributable to noncontrolling interests			(66,559)		(6,640)			-			(59,919)
Net income attributable to Vornado			509,327		330,681			154,335			24,311
Net income attributable to noncontrolling interests in the
	Operating Partnership		28,189		-			-			28,189
Interest and debt expense⁽²⁾			348,725		184,377			62,413			101,935
Depreciation and amortization⁽²⁾			493,904		288,897			136,687			68,320
Income tax (benefit) expense⁽²⁾			(85,349)		3,368			(1,856)			(86,861)
EBITDA⁽¹⁾		$	1,294,796	$	807,323	⁽³⁾	$	351,579	⁽⁴⁾	$	135,894	⁽⁵⁾


See notes on the following pages.

Notes to preceding tabular information:

(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." We calculate EBITDA on an Operating Partnership basis which is before allocation to noncontrolling interests in the Operating Partnership. 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 Nine Months Ended
				September 30,				September 30,
				2016		2015		2016		2015
	Office^(a)			$	159,937	$	161,168	$	475,726	$	480,508
	Retail^(b)				95,274		97,604		284,212		265,060
	Residential				6,214		5,495		18,901		16,254
	Alexander's				11,506		10,502		34,880		31,150
	Hotel Pennsylvania				3,962		7,621		4,287		14,351
					276,893		282,390		818,006		807,323
	Net gain on sale of 47% ownership interest
		in 7 West 34th Street			-		-		159,511		-
			Total New York	$	276,893	$	282,390	$	977,517	$	807,323


	(a)	The three and nine months ended September 30, 2015 include $5,151 and $16,954, respectively, of EBITDA from sold properties and other. Excluding these items, EBITDA was $156,017 and $463,554, respectively. The nine months ended September 30, 2016 includes $2,935 of EBITDA from a sold property. Excluding this item, EBITDA was $472,791.
	(b)	The three and nine months ended September 30, 2015 include $524 and $1,597, respectively, of EBITDA from a sold property. Excluding this item, EBITDA was $97,080 and $263,463, respectively. The nine months ended September 30, 2016 includes $185 of EBITDA from a sold property. Excluding this item, EBITDA was $284,027.

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

	(Amounts in thousands)			For the Three Months Ended				For the Nine Months Ended
				September 30,				September 30,
				2016		2015		2016		2015
	Office, excluding the Skyline properties ^(a)			$	67,073	$	63,879	$	191,646	$	199,757
	Skyline properties				4,222		5,998		14,177		19,037
	Skyline properties impairment loss				-		-		(160,700)		-
	Net gain on sale of 1750 Pennsylvania Avenue				-		102,404		-		102,404
			Total Office		71,295		172,281		45,123		321,198
	Residential				11,470		10,407		32,711		30,381
			Total Washington, DC	$	82,765	$	182,688	$	77,834	$	351,579


	(a)	The three and nine months ended September 30, 2015 include $1,601 and $5,591, respectively, of EBITDA from a sold property. Excluding this item, EBITDA was $62,278 and $194,166, 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 Nine Months Ended
				September 30,				September 30,
				2016		2015		2016		2015
	Our share of real estate fund investments:
		Income before net realized/unrealized gains and losses		$	2,552	$	2,594	$	6,309	$	6,879
		Net realized/unrealized (losses) gains on investments			(2,118)		(922)		3,333		9,542
		Carried interest			373		(49)		4,020		6,248
	Total				807		1,623		13,662		22,669
	theMART (including trade shows)				21,696		19,044		70,689		62,229
	555 California Street				11,405		13,005		35,137		38,237
	India real estate ventures				836		13		2,585		2,229
	Other investments				19,092		11,009		46,180		31,705
					53,836		44,694		168,253		157,069
	Corporate general and administrative expenses^(a)(b)				(21,519)		(22,341)		(76,364)		(82,043)
	Investment income and other, net^(a)				6,871		5,952		19,317		21,275
	Acquisition and transaction related costs				(3,808)		(1,518)		(11,319)		(7,560)
	UE and residual retail properties discontinued operations^(c)				2,969		2,516		6,173		26,313
	Net gain on sale of Monmouth Mall				-		33,153		-		33,153
	Net gain on sale of residential condominiums				-		633		714		2,493
	Our share of impairment loss on India real estate ventures				-		-		-		(14,806)
			Total Other	$	38,349	$	63,089	$	106,774	$	135,894


	(a)	The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $204 of income and $2,577 of loss for the three months ended September 30, 2016 and 2015, respectively, and $2,625 of income and $327 of loss for the nine months ended September 30, 2016 and 2015, respectively.
	(b)	The nine months ended September 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 nine months ended September 30, 2015 includes $22,972 of transaction costs related to the spin-off of our strip shopping centers and malls.

Revision of our calculation of Other segment EBITDA

(Amounts in thousands)		Total EBITDA						Other EBITDA
				Net income (loss)						Net income (loss)
				attributable to						attributable to
				noncontrolling						noncontrolling
				interests in the						interests in the
				Operating						Operating
		As reported		Partnership		As restated		As reported		Partnership		As restated
For the year ended:
	December 31, 2015	$	1,809,535	$	43,231	$	1,852,766	$	128,246	$	43,231	$	171,477
	December 31, 2014		2,229,471		47,613		2,277,084		454,692		47,613		502,305
	December 31, 2013		1,993,880		24,817		2,018,697		572,975		24,817		597,792

For the three months ended:
	June 30, 2016		546,681		14,531		561,212		27,102		14,531		41,633
	March 31, 2016		210,393		(7,487)		202,906		34,279		(7,487)		26,792
	December 31, 2015		542,928		15,042		557,970		20,541		15,042		35,583
	September 30, 2015		515,463		12,704		528,167		50,385		12,704		63,089
	June 30, 2015		376,681		10,198		386,879		15,059		10,198		25,257
	March 31, 2015		374,463		5,287		379,750		42,261		5,287		47,548

For the six months ended:
	June 30, 2016		757,074		7,044		764,118		61,381		7,044		68,425
	June 30, 2015		751,144		15,485		766,629		57,320		15,485		72,805

For the nine months ended:
	September 30, 2015		1,266,607		28,189		1,294,796		107,705		28,189		135,894