Segment Information

3 Months Ended

Mar. 31, 2017

Segment Information [Abstract]

Segment Information

20. Segment Information

Below is a summary of net income and a reconciliation of net income to EBITDA⁽¹⁾ by segment for the three months endedMarch 31,2017.

(Amounts in thousands)		For the Three Months Ended March 31, 2017
			Total		New York			Washington, DC			Other
Total revenues			$	620,848	$	426,239		$	116,207		$	78,402
Total expenses				464,381		280,821			83,988			99,572
Operating income (loss)				156,467		145,418			32,219			(21,170)
Income (loss) from partially owned entities				1,445		(2,093)			32			3,506
Income from real estate fund investments				268		-			-			268
Interest and other investment income, net				9,228		1,472			64			7,692
Interest and debt expense				(94,285)		(57,987)			(11,561)			(24,737)
Net gains on disposition of wholly owned and partially
	owned assets			501		-			-			501
Income (loss) before income taxes				73,624		86,810			20,754			(33,940)
Income tax expense				(2,205)		(143)			(354)			(1,708)
Income (loss) from continuing operations				71,419		86,667			20,400			(35,648)
Income from discontinued operations				2,428		-			-			2,428
Net income (loss)				73,847		86,667			20,400			(33,220)
Less net income attributable to noncontrolling interests
	in consolidated subsidiaries			(6,737)		(2,844)			-			(3,893)
Net income (loss) attributable to the Operating Partnership				67,110		83,823			20,400			(37,113)
Interest and debt expense(2)				116,327		75,923			13,499			26,905
Depreciation and amortization(2)				171,537		112,810			36,383			22,344
Income tax expense (2)				2,429		227			367			1,835
EBITDA(1)			$	357,403	$	272,783	(3)	$	70,649	(4)	$	13,971	(5)

See notes on pages ##PRS<EBITDANOTES1> and ##PRE<EBITDANOTES2>.

Below is a summary of net income and a reconciliation of net income to EBITDA⁽¹⁾ by segment for the three months endedMarch 31,2016.

(Amounts in thousands)		For the Three Months Ended March 31, 2016
		Total		New York			Washington, DC			Other
Total revenues		$	613,037	$	410,825		$	128,012		$	74,200
Total expenses			613,317		269,595			256,565			87,157
Operating (loss) income			(280)		141,230			(128,553)			(12,957)
(Loss) income from partially owned entities			(4,240)		(3,563)			(2,265)			1,588
Income from real estate fund investments			11,284		-			-			11,284
Interest and other investment income, net			3,518		1,115			58			2,345
Interest and debt expense			(100,489)		(54,586)			(15,935)			(29,968)
Net gains on disposition of wholly owned and partially
	owned assets		714		-			-			714
(Loss) income before income taxes			(89,493)		84,196			(146,695)			(26,994)
Income tax expense			(2,831)		(959)			(264)			(1,608)
(Loss) income from continuing operations			(92,324)		83,237			(146,959)			(28,602)
Income from discontinued operations			716		-			-			716
Net (loss) income			(91,608)		83,237			(146,959)			(27,886)
Less net income attributable to noncontrolling interests
	in consolidated subsidiaries		(9,678)		(3,429)			-			(6,249)
Net (loss) income attributable to the Operating Partnership			(101,286)		79,808			(146,959)			(34,135)
Interest and debt expense(2)			126,120		71,198			18,996			35,926
Depreciation and amortization(2)			174,811		108,403			42,230			24,178
Income tax expense(2)			3,261		1,090			265			1,906
EBITDA(1)		$	202,906	$	260,499	(3)	$	(85,468)	(4)	$	27,875	(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 the noncontrolling interest of 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.
	Our 7.5% interest in Fashion Centre Mall/Washington Tower will not be included in the spin-off of our Washington, DC segment and has been reclassified to Other. The prior year's presentation has been conformed to the current year. In addition, on January 1, 2017, we reclassified our investment in 85 Tenth Avenue from Other to the New York segment as a result of the December 1, 2016 repayment of our loans receivable and the receipt of a 49.9% ownership interest in the property.
(2)	Interest and debt expense, depreciation and amortization and income tax expense 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 March 31,
				2017		2016
	Office			$	170,077	$	156,643	(a)
	Retail				89,264		89,409	(a)
	Residential				6,278		6,350
	Alexander's				11,562		11,569
	Hotel Pennsylvania				(4,398)		(3,472)
		Total New York EBITDA			272,783		260,499
		EBITDA from sold properties			-		(1,442)
			Total New York EBITDA, as adjusted	$	272,783	$	259,057
	(a)	Beginning in January 2017 for office buildings with retail at the base, we have adjusted the allocation of real estate taxes between the retail and office elements above. This has no effect on our consolidated financial statements, but resulted in a reallocation of $3,914 of income from retail to office for the three months ended March 31, 2016.
(4)	The elements of "Washington, DC" EBITDA are summarized below.
	(Amounts in thousands)			For the Three Months Ended March 31,
				2017		2016
	Office, excluding the Skyline properties			$	57,032	$	59,208
	Skyline properties				-		(155,083)
		Total Office			57,032		(95,875)
	Residential				13,617		10,407
		Total Washington, DC EBITDA			70,649		(85,468)
	Certain items that impact EBITDA:
		Skyline properties impairment loss			-		160,700
		EBITDA from sold properties			-		(5,945)
		Total of certain items that impact EBITDA			-		154,755
			Total Washington, DC EBITDA, as adjusted	$	70,649	$	69,287

Notes to preceding tabular information - continued:
	(5)	The elements of "Other" EBITDA are summarized below.
		(Amounts in thousands)		For the Three Months Ended
				March 31,
				2017		2016
		Our share of real estate fund investments:
			Income before net realized/unrealized gains and losses	$	2,875	$	2,231
			Net realized/unrealized (losses) gains on investments		(1,737)		1,561
			Carried interest		(4,373)		1,519
		Total			(3,235)		5,311
		theMART (including trade shows)			24,184		23,028
		555 California Street			12,083		11,615
		Other investments			10,462		14,724
					43,494		54,678
		Corporate general and administrative expenses(a)			(32,987)		(30,606)
		Investment income and other, net(a)			8,540		6,975
		Acquisition and transaction related costs(b)			(8,005)		(4,607)
		Residual retail properties discontinued operations			2,428		721
		Net gains on sale of residential condominiums			501		714
			Total Other	$	13,971	$	27,875
		(a)	The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $2,469 of income for the three months ended March 31, 2017 and $1,938 of loss for the three months ended March 31, 2016.
		(b)	The three months ended March 31, 2017 includes $7,253 of transaction costs related to the spin-off of our Washington, DC business.