Segment Information (Tables)

12 Months Ended

Dec. 31, 2012


(Amounts in thousands)		For the Year Ended December 31, 2012
										Retail			Merchandise
			Total		New York			Washington, DC		Properties			Mart		Toys		Other
Property rentals			$	1,962,545	$	1,004,078		$	467,972	$	276,190		$	125,018	$	-	$	89,287
Straight-line rent adjustments				68,844		52,117			5,727		9,379			763		-		858
Amortization of acquired below-
	market leases, net			54,193		31,552			2,043		14,902			-		-		5,696
Total rentals				2,085,582		1,087,747			475,742		300,471			125,781		-		95,841
Tenant expense reimbursements				301,092		160,133			40,742		88,545			4,343		-		7,329
Cleveland Medical Mart development
	project			235,234		-			-		-			235,234		-		-
Fee and other income:
	BMS cleaning fees			67,584		94,965			-		-			-		-		(27,381)
	Signage revenue			20,892		20,892			-		-			-		-		-
	Management and leasing fees			21,867		5,639			12,775		3,131			231		-		91
	Lease termination fees			2,361		1,136			643		74			508		-		-
	Other income			31,845		4,472			24,126		1,778			1,574		-		(105)
Total revenues				2,766,457		1,374,984			554,028		393,999			367,671		-		75,775
Operating expenses				1,021,719		602,883			194,523		141,732			65,337		-		17,244
Depreciation and amortization				517,811		226,653			138,296		76,835			33,778		-		42,249
General and administrative				201,894		30,053			27,237		23,654			18,899		-		102,051
Cleveland Medical Mart development
	project			226,619		-			-		-			226,619		-		-
Impairment losses, acquisition related
	costs and tenant buy-outs			120,786		-			-		103,400			-		-		17,386
Total expenses				2,088,829		859,589			360,056		345,621			344,633		-		178,930
Operating income (loss)				677,628		515,395			193,972		48,378			23,038		-		(103,155)
Income applicable to Toys				14,859		-			-		-			-		14,859		-
Income (loss) from partially owned
	entities			408,267		207,773			(5,612)		1,458			729		-		203,919
Income from Real Estate Fund				63,936		-			-		-			-		-		63,936
Interest and other investment
	(loss) income, net			(260,945)		4,230			126		27			-		-		(265,328)
Interest and debt expense				(500,361)		(147,132)			(115,574)		(62,923)			(31,393)		-		(143,339)
Net gain on disposition of wholly
	owned and partially owned assets			13,347		-			-		8,491			-		-		4,856
Income (loss) before income taxes				416,731		580,266			72,912		(4,569)			(7,626)		14,859		(239,111)
Income tax expense				(8,132)		(3,491)			(1,650)		-			(502)		-		(2,489)
Income (loss) from continuing
	operations			408,599		576,775			71,262		(4,569)			(8,128)		14,859		(241,600)
Income (loss) from discontinued
	operations			285,942		(641)			167,766		42,926			75,144		-		747
Net income (loss)				694,541		576,134			239,028		38,357			67,016		14,859		(240,853)
Less net (income) loss attributable to
	noncontrolling interests in
	consolidated subsidiaries			(32,018)		(2,138)			-		1,812			-		-		(31,692)
Net income (loss) attributable to
	Vornado Realty L.P.			662,523		573,996			239,028		40,169			67,016		14,859		(272,545)
Interest and debt expense⁽²⁾				760,523		187,855			133,625		73,828			35,423		147,880		181,912
Depreciation and amortization⁽²⁾				735,293		252,257			157,816		86,529			39,596		135,179		63,916
Income tax expense (benefit)⁽²⁾				7,026		3,751			1,943		-			12,503		(16,629)		5,458
EBITDA⁽¹⁾			$	2,165,365	$	1,017,859	⁽³⁾	$	532,412	$	200,526	⁽⁴⁾	$	154,538	$	281,289	$	(21,259)	⁽⁵⁾

Balance Sheet Data:
Real estate at cost			$	18,495,359	$	8,915,981		$	4,171,879	$	3,009,816		$	772,372	$	-	$	1,625,311
Investments in partially owned entities				1,704,297		576,336			95,670		7,083			3,567		478,041		543,600
Total assets				21,965,975		9,116,364			4,196,694		3,589,633			1,246,975		478,041		3,338,268

See notes on page 178.


(Amounts in thousands)		For the Year Ended December 31, 2011
										Retail			Merchandise
			Total		New York			Washington, DC		Properties			Mart		Toys		Other
Property rentals			$	2,012,292	$	979,032		$	531,510	$	274,386		$	136,404	$	-	$	90,960
Straight-line rent adjustments				39,858		34,446			(2,569)		6,723			(1,284)		-		2,542
Amortization of acquired below-
	market leases, net			62,105		40,958			2,160		13,969			-		-		5,018
Total rentals				2,114,255		1,054,436			531,101		295,078			135,120		-		98,520
Tenant expense reimbursements				314,752		165,433			36,299		96,805			6,321		-		9,894
Cleveland Medical Mart development
	project			154,080		-			-		-			154,080		-		-
Fee and other income:
	BMS cleaning fees			61,754		90,033			-		-			-		-		(28,279)
	Signage revenue			19,823		19,823			-		-			-		-		-
	Management and leasing fees			21,801		5,095			12,361		3,990			342		-		13
	Lease termination fees			16,334		11,839			3,794		467			234		-		-
	Other income			30,037		6,457			19,762		1,862			2,218		-		(262)
Total revenues				2,732,836		1,353,116			603,317		398,202			298,315		-		79,886
Operating expenses				995,586		578,344			188,744		133,403			77,492		-		17,603
Depreciation and amortization				524,550		221,520			154,142		77,433			28,804		-		42,651
General and administrative				208,008		26,808			26,369		25,489			28,040		-		101,302
Cleveland Medical Mart development
	project			145,824		-			-		-			145,824		-		-
Impairment losses, acquisition related
	costs and tenant buy-outs			35,299		23,777			-		369			5,228		-		5,925
Total expenses				1,909,267		850,449			369,255		236,694			285,388		-		167,481
Operating income (loss)				823,569		502,667			234,062		161,508			12,927		-		(87,595)
Income applicable to Toys				48,540		-			-		-			-		48,540		-
Income (loss) from partially owned
	entities			70,072		12,062			(6,381)		2,700			455		-		61,236
Income from Real Estate Fund				22,886		-			-		-			-		-		22,886
Interest and other investment
	income (loss), net			148,784		4,245			199		(32)			1		-		144,371
Interest and debt expense				(526,175)		(152,386)			(115,456)		(70,952)			(31,208)		-		(156,173)
Net gain on disposition of wholly
	owned and partially owned assets			15,134		-			-		4,278			-		-		10,856
Income (loss) before income taxes				602,810		366,588			112,424		97,502			(17,825)		48,540		(4,419)
Income tax expense				(23,925)		(2,084)			(2,690)		(34)			(1,572)		-		(17,545)
Income (loss) from continuing
	operations			578,885		364,504			109,734		97,468			(19,397)		48,540		(21,964)
Income from discontinued
	operations			161,115		563			52,390		31,815			72,971		-		3,376
Net income (loss)				740,000		365,067			162,124		129,283			53,574		48,540		(18,588)
Less net (income) loss attributable to
	noncontrolling interests in
	consolidated subsidiaries			(21,786)		(10,042)			-		237			-		-		(11,981)
Net income (loss) attributable to
	Vornado Realty L.P.			718,214		355,025			162,124		129,520			53,574		48,540		(30,569)
Interest and debt expense⁽²⁾				797,920		181,740			134,270		82,608			40,916		157,135		201,251
Depreciation and amortization⁽²⁾				777,421		247,630			181,560		91,040			46,725		134,967		75,499
Income tax expense (benefit)⁽²⁾				4,812		2,170			3,123		34			2,237		(1,132)		(1,620)
EBITDA⁽¹⁾			$	2,298,367	$	786,565	⁽³⁾	$	481,077	$	303,202	⁽⁴⁾	$	143,452	$	339,510	$	244,561	⁽⁵⁾

Balance Sheet Data:
Real estate at cost			$	16,703,757	$	7,070,026		$	4,176,894	$	3,102,983		$	746,498	$	-	$	1,607,356
Investments in partially owned entities				1,740,459		536,393			113,536		7,747			3,589		506,809		572,385
Total assets				20,446,487		7,130,240			4,150,140		3,748,303			1,226,084		506,809		3,684,911


See notes on page 178.


(Amounts in thousands)		For the Year Ended December 31, 2010
										Retail			Merchandise
			Total		New York			Washington, DC		Properties			Mart		Toys		Other
Property rentals			$	1,957,130	$	944,322		$	536,947	$	256,654		$	132,120	$	-	$	87,087
Straight-line rent adjustments				70,972		51,385			6,089		9,401			301		-		3,796
Amortization of acquired below-
	market leases, net			65,373		44,879			2,453		12,384			-		-		5,657
Total rentals				2,093,475		1,040,586			545,489		278,439			132,421		-		96,540
Tenant expense reimbursements				317,777		159,369			49,792		93,032			5,274		-		10,310
Fee and other income:
	BMS cleaning fees			58,053		84,945			-		-			-		-		(26,892)
	Signage revenue			18,618		18,618			-		-			-		-		-
	Management and leasing fees			21,686		4,427			15,934		1,820			156		-		(651)
	Lease termination fees			14,818		7,470			1,148		4,441			459		-		1,300
	Other income			33,780		6,051			20,594		927			3,068		-		3,140
Total revenues				2,558,207		1,321,466			632,957		378,659			141,378		-		83,747
Operating expenses				983,424		556,270			202,569		141,116			65,842		-		17,627
Depreciation and amortization				494,898		212,903			136,391		71,556			28,416		-		45,632
General and administrative				211,399		25,560			25,454		27,676			24,199		-		108,510
Impairment losses, acquisition related
	costs and tenant buy-outs			109,458		1,605			-		70,895			-		-		36,958
Total expenses				1,799,179		796,338			364,414		311,243			118,457		-		208,727
Operating income (loss)				759,028		525,128			268,543		67,416			22,921		-		(124,980)
Income applicable to Toys				71,624		-			-		-			-		71,624		-
Income (loss) from partially owned
	entities			20,869		13,317			(564)		8,220			(179)		-		75
(Loss) from Real Estate Fund				(303)		-			-		-			-		-		(303)
Interest and other investment
	income, net			235,267		4,237			154		164			3		-		230,709
Interest and debt expense				(539,370)		(145,406)			(125,272)		(63,265)			(31,208)		-		(174,219)
Net gain (loss) on extinguishment
	of debt			94,789		-			-		105,571			-		-		(10,782)
Net gain on disposition of wholly
	owned and partially owned assets			81,432		-			54,742		-			765		-		25,925
Income (loss) before income taxes				723,336		397,276			197,603		118,106			(7,698)		71,624		(53,575)
Income tax (expense) benefit				(22,137)		(2,167)			(1,679)		(37)			29		-		(18,283)
Income (loss) from continuing
	operations			701,199		395,109			195,924		118,069			(7,669)		71,624		(71,858)
Income (loss) from discontinued operations				6,832		168			4,143		19,061			(20,948)		-		4,408
Net income (loss)				708,031		395,277			200,067		137,130			(28,617)		71,624		(67,450)
Less net (income) loss attributable to
	noncontrolling interests in
	consolidated subsidiaries			(4,920)		(9,559)			-		(778)			-		-		5,417
Net income (loss) attributable to
	Vornado Realty L.P.			703,111		385,718			200,067		136,352			(28,617)		71,624		(62,033)
Interest and debt expense⁽²⁾				828,082		158,249			136,174		79,545			61,379		177,272		215,463
Depreciation and amortization⁽²⁾				729,426		218,766			159,283		86,629			51,064		131,284		82,400
Income tax (benefit) expense⁽²⁾				(23,036)		1,311			2,027		37			232		(45,418)		18,775
EBITDA⁽¹⁾			$	2,237,583	$	764,044	⁽³⁾	$	497,551	$	302,563	⁽⁴⁾	$	84,058	$	334,762	$	254,605	⁽⁵⁾

Balance Sheet Data:
Real estate at cost			$	16,454,967	$	6,999,784		$	4,040,491	$	3,076,114		$	741,188	$	-	$	1,597,390
Investments in partially owned entities				1,375,006		273,536			149,295		6,251			4,183		447,334		494,407
Total assets				20,517,471		6,611,632			3,872,209		3,591,244			1,435,714		447,334		4,559,338


See notes on the following page.

26. Segment Information - continued

	Notes to preceding tabular information:



(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." We consider EBITDA a supplemental 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.

			For the Year Ended December 31,
	(Amounts in thousands)		2012		2011		2010
	Office		$	568,518	$	539,734	$	510,187
	Retail			189,484		163,033		180,225
	Alexander's			231,402		53,663		49,869
	Hotel Pennsylvania			28,455		30,135		23,763
		Total New York	$	1,017,859	$	786,565	$	764,044



(4)	The elements of "Retail Properties" EBITDA are summarized below.

			For the Year Ended December 31,
	(Amounts in thousands)		2012		2011		2010
	Strip shopping centers		$	172,708	$	210,022	$	180,323
	Regional malls			27,818		93,180		122,240
		Total Retail properties	$	200,526	$	303,202	$	302,563

Details of Other EBITDA (Table)

26. Segment Information - continued

	Notes to preceding tabular information:

(5)	The elements of "other" EBITDA from continuing operations are summarized below.

	(Amounts in thousands)			For the Year Ended December 31,
				2012		2011			2010
	Our share of Real Estate Fund:
		Income before net realized/unrealized gains		$	4,926	$	4,205	$	503
		Net unrealized gains			13,840		2,999		-
		Net realized gains			-		1,348		-
		Carried interest			5,838		736		-
	Total				24,604		9,288		503
	LNR (acquired in July 2010)				79,520		47,614		6,116
	555 California Street				46,167		44,724		46,782
	Lexington				32,595		34,779		41,594
	Other investments				29,266		33,529		30,463
					212,152		169,934		125,458
	Corporate general and administrative expenses^(a)				(90,567)		(85,922)		(90,343)
	Investment income and other, net^(a)				35,397		52,405		65,499
	Fee income from Alexander's (including a $6,423 sales commission in 2012)				13,748		7,417		7,556
	Non-cash impairment loss on J.C. Penney owned shares				(224,937)		-		-
	(Loss) income from the mark-to-market of J.C. Penney derivative position				(75,815)		12,984		130,153
	Purchase price fair value adjustment and accelerated amortization of
		discount on investment in subordinated debt of Independence Plaza			105,366		-		-
	Net gain resulting from Lexington's stock issuance and asset acquisition				28,763		9,760		13,710
	Acquisition related costs and impairment losses				(17,386)		(5,925)		(36,958)
	Verde Realty impairment loss				(4,936)		-		-
	Our share of impairment losses of partially owned entities				(4,318)		(13,794)		-
	Net gain on sale of residential condominiums				1,274		5,884		3,149
	Mezzanine loans loss reversal and net gain on disposition				-		82,744		53,100
	Net gain from Suffolk Downs' sale of a partial interest				-		12,525		-
	Real Estate Fund placement fees				-		(3,451)		(5,937)
	Net loss on extinguishment of debt				-		-		(10,782)
				$	(21,259)	$	244,561	$	254,605


	(a)		The amounts in these captions (for this table only) exclude the mark-to-market of our deferred compensation plan assets and offsetting liability.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details