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.



(Amounts in thousands)
Balance, December 31, 2016	$	1,278,446
Net income	3,229
Other comprehensive income	3
Distributions	(9,163		)
Redemption of Class A units for Vornado common shares, at redemption value	(14,739		)
Adjustments to carry redeemable Class A units at redemption value	(6,197		)
Other, net	14,495
Balance, March 31, 2017	$	1,266,074

Balance, December 31, 2017	$	984,937
Net loss	(1,124		)
Other comprehensive income	654
Distributions	(7,906		)
Redemption of Class A units for Vornado common shares, at redemption value	(8,392		)
Adjustments to carry redeemable Class A units at redemption value	(114,856		)
Other, net	3,713
Balance, March 31, 2018	$	857,026

As of March 31, 2018 and December 31, 2017, the aggregate redemption value of redeemable Class A units of the Operating Partnership, which are those units held by third parties, was $851,598,000 and $979,509,000, respectively.

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 Topic 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 $50,561,000 as of March 31, 2018 and December 31, 2017. Changes in the value from period to period, if any, are charged to “interest and debt expense” on our consolidated statements of income.