Redeemable Noncontrolling Interests / Redeemable Partnership Units

12 Months Ended

Dec. 31, 2016

Redeemable Noncontrolling Interests / Redeemable Partnership Units [Abstract]

Redeemable Noncontrolling Interests / Redeemable Partnership Units

9. Redeemable Noncontrolling Interests/Redeemable Partnership Units

Redeemable noncontrolling interests on Vornado’s consolidated balance sheets and redeemable partnership units on the consolidated balance sheets of the Operating Partnership are primarily comprised of Class A Operating Partnership units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership. Class A units may be tendered for redemption to the Operating Partnership for cash; Vornado, at its option, may assume that obligation and pay the holder either cash or Vornado common shares on a one-for-one basis. Because the number of Vornado common shares outstanding at all times equals the number of Class A units owned by Vornado, the redemption value of each Class A unit is equivalent to the market value of one Vornado common share, and the quarterly distribution to a Class A unitholder is equal to the quarterly dividend paid to a Vornado common shareholder.

Below are the details of redeemable noncontrolling interests/redeemable partnership units as of December 31, 2016 and 2015.

(Amounts in thousands, except units and										Preferred or
per unit amounts)		Balance as of				Units Outstanding at		Per Unit		Annual
		December 31,				December 31,		Liquidation		Distribution
Unit Series		2016			2015	2016	2015	Preference		Rate
Common:
	Class A units held by third parties	$	1,273,018	$	1,223,793	12,197,162	12,242,820		n/a	$	2.52
Perpetual Preferred/Redeemable Preferred(1):
	5.00% D-16 Cumulative Redeemable	$	1,000	$	1,000	1	1	$	1,000,000.00	$	50,000.00
	3.25% D-17 Cumulative Redeemable	$	4,428	$	4,428	177,100	177,100	$	25.00	$	0.8125
(1)	Holders may tender units for redemption to the Operating Partnership for cash at their stated redemption amount; Vornado, at its option, may assume that obligation and pay the holders either cash or Vornado preferred shares on a one-for-one basis. These units are redeemable at Vornado's option at any time.

Below is a table summarizing the activity of redeemable noncontrolling interests/redeemable partnership units.
	(Amounts in thousands)
	Balance at December 31, 2014	$	1,337,780
	Net income		43,231
	Other comprehensive loss		(2,866)
	Distributions		(30,263)
	Redemption of Class A units for Vornado common shares, at redemption value		(48,230)
	Adjustments to carry redeemable Class A units at redemption value		(192,464)
	Issuance of Class A units		80,000
	Issuance of Series D-17 Preferred Units		4,428
	Other, net		37,605
	Balance at December 31, 2015		1,229,221
	Net income		53,654
	Other comprehensive income		4,699
	Distributions		(31,342)
	Redemption of Class A units for Vornado common shares, at redemption value		(36,510)
	Adjustments to carry redeemable Class A units at redemption value		26,251
	Other, net		32,473
	Balance at December 31, 2016	$	1,278,446

Redeemable noncontrolling interests/redeemable partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC 480, Distinguishing Liabilities and Equity, because of their possible settlement by issuing a variable number of Vornado common shares. Accordingly, the fair value of these units is included as a component of “other liabilities” on our consolidated balance sheets and aggregated $50,561,000as of December 31,2016 and 2015, respectively. Changes in the value from period to period, if any, are charged to “interest and debt expense” on our consolidated statements of income.