Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of Segment Information [Table Text Block]


(Amounts in thousands)		For the Three Months Ended June 30, 2014
											Retail
			Total		New York			Washington, DC			Properties			Toys		Other
Total revenues			$	666,606	$	385,534		$	134,826		$	82,807		$	-	$	63,439
Total expenses				439,129		230,812			87,352			48,053			-		72,912
Operating income (loss)				227,477		154,722			47,474			34,754			-		(9,473)
(Loss) income from partially owned
	entities, including Toys			(53,742)		8,996			(2,248)			341			(57,591)		(3,240)
Income from Real Estate Fund				100,110		-			-			-			-		100,110
Interest and other investment income, net				9,435		1,645			42			8			-		7,740
Interest and debt expense				(117,051)		(49,070)			(18,660)			(9,292)			-		(40,029)
Net gain on disposition of wholly owned and
	partially owned assets			905		-			-			-			-		905
Income (loss) before income taxes				167,134		116,293			26,608			25,811			(57,591)		56,013
Income tax expense				(3,599)		(1,226)			(115)			(319)			-		(1,939)
Income (loss) from continuing operations				163,535		115,067			26,493			25,492			(57,591)		54,074
Income (loss) from discontinued operations				2,152		-			-			2,154			-		(2)
Net income (loss)				165,687		115,067			26,493			27,646			(57,591)		54,072
Less net income attributable to noncontrolling
	interests in consolidated subsidiaries			(63,975)		(3,108)			-			(21)			-		(60,846)
Net income (loss) attributable to
	Vornado Realty L.P.			101,712		111,959			26,493			27,625			(57,591)		(6,774)
Interest and debt expense⁽²⁾				179,520		64,072			22,463			10,433			39,529		43,023
Depreciation and amortization⁽²⁾				173,443		74,007			35,806			15,803			27,686		20,141
Income tax (benefit) expense ⁽²⁾				(574)		1,291			132			319			(4,435)		2,119
EBITDA⁽¹⁾			$	454,101	$	251,329	⁽³⁾	$	84,894	⁽⁴⁾	$	54,180	⁽⁵⁾	$	5,189	$	58,509	⁽⁶⁾


(Amounts in thousands)		For the Three Months Ended June 30, 2013
											Retail
			Total		New York			Washington, DC			Properties			Toys		Other
Total revenues			$	671,216	$	375,700		$	134,317		$	80,446		$	-	$	80,753
Total expenses				461,154		233,733			85,782			47,038			-		94,601
Operating income (loss)				210,062		141,967			48,535			33,408			-		(13,848)
(Loss) income from partially owned
	entities, including Toys			(35,389)		4,226			(2,449)			423			(36,861)		(728)
Income from Real Estate Fund				34,470		-			-			-			-		34,470
Interest and other investment income (loss), net				26,415		1,443			6			(49)			-		25,015
Interest and debt expense				(120,657)		(42,648)			(27,854)			(11,517)			-		(38,638)
Net gain on disposition of wholly owned and
	partially owned assets			1,005		-			-			-			-		1,005
Income (loss) before income taxes				115,906		104,988			18,238			22,265			(36,861)		7,276
Income tax expense				(2,877)		(961)			(805)			(749)			-		(362)
Income (loss) from continuing operations				113,029		104,027			17,433			21,516			(36,861)		6,914
Income from discontinued operations				69,292		2,928			-			66,091			-		273
Net income (loss)				182,321		106,955			17,433			87,607			(36,861)		7,187
Less net income attributable to noncontrolling
	interests in consolidated subsidiaries			(14,930)		(1,381)			-			(13)			-		(13,536)
Net income (loss) attributable to
	Vornado Realty L.P.			167,391		105,574			17,433			87,594			(36,861)		(6,349)
Interest and debt expense⁽²⁾				179,461		54,546			31,245			13,715			37,730		42,225
Depreciation and amortization⁽²⁾				182,131		74,573			35,248			16,348			33,882		22,080
Income tax (benefit) expense ⁽²⁾				(22,366)		1,030			852			749			(25,697)		700
EBITDA⁽¹⁾			$	506,617	$	235,723	⁽³⁾	$	84,778	⁽⁴⁾	$	118,406	⁽⁵⁾	$	9,054	$	58,656	⁽⁶⁾


See notes on page 31.


(Amounts in thousands)		For the Six Months Ended June 30, 2014
											Retail
			Total		New York			Washington, DC			Properties			Toys		Other
Total revenues			$	1,327,224	$	756,816		$	270,104		$	171,612		$	-	$	128,692
Total expenses				934,113		472,811			176,924			130,284			-		154,094
Operating income (loss)				393,111		284,005			93,180			41,328			-		(25,402)
(Loss) income from partially owned
	entities, including Toys			(51,763)		10,562			(3,514)			879			(55,744)		(3,946)
Income from Real Estate Fund				118,258		-			-			-			-		118,258
Interest and other investment income, net				21,328		3,120			78			17			-		18,113
Interest and debt expense				(226,493)		(91,909)			(38,007)			(18,509)			-		(78,068)
Net gain on disposition of wholly
	owned and partially owned assets			10,540		-			-			-			-		10,540
Income (loss) before income taxes				264,981		205,778			51,737			23,715			(55,744)		39,495
Income tax (expense) benefit				(5,181)		(2,195)			84			(1,050)			-		(2,020)
Income (loss) from continuing operations				259,800		203,583			51,821			22,665			(55,744)		37,475
Income from discontinued operations				4,043		-			-			3,868			-		175
Net income (loss)				263,843		203,583			51,821			26,533			(55,744)		37,650
Less net income attributable to noncontrolling
	interests in consolidated subsidiaries			(75,554)		(4,513)			-			(38)			-		(71,003)
Net income (loss) attributable to
	Vornado Realty L.P.			188,289		199,070			51,821			26,495			(55,744)		(33,353)
Interest and debt expense⁽²⁾				350,472		122,140			45,261			20,784			78,078		84,209
Depreciation and amortization⁽²⁾				369,782		161,594			71,956			41,131			54,610		40,491
Income tax expense (benefit)⁽²⁾				19,257		2,323			(57)			1,050			13,642		2,299
EBITDA⁽¹⁾			$	927,800	$	485,127	⁽³⁾	$	168,981	⁽⁴⁾	$	89,460	⁽⁵⁾	$	90,586	$	93,646	⁽⁶⁾

(Amounts in thousands)		For the Six Months Ended June 30, 2013
										Retail
		Total		New York			Washington, DC			Properties			Toys		Other
Total revenues		$	1,389,929	$	740,501		$	269,048		$	222,658		$	-	$	157,722
Total expenses			929,573		476,660			170,979			95,618			-		186,316
Operating income (loss)			460,356		263,841			98,069			127,040			-		(28,594)
(Loss) income from partially owned
	entities, including Toys		(12,864)		9,831			(4,542)			1,324			(35,102)		15,625
Income from Real Estate Fund			51,034		-			-			-			-		51,034
Interest and other investment (loss) income, net			(22,660)		2,608			82			2			-		(25,352)
Interest and debt expense			(241,003)		(83,079)			(56,104)			(21,803)			-		(80,017)
Net loss on disposition of wholly owned and
	partially owned assets		(35,719)		-			-			-			-		(35,719)
Income (loss) before income taxes			199,144		193,201			37,505			106,563			(35,102)		(103,023)
Income tax expense			(3,950)		(1,233)			(1,183)			(749)			-		(785)
Income (loss) from continuing operations			195,194		191,968			36,322			105,814			(35,102)		(103,808)
Income (loss) from discontinued operations			276,054		5,656			-			271,473			-		(1,075)
Net income (loss)			471,248		197,624			36,322			377,287			(35,102)		(104,883)
Less net income attributable to noncontrolling
	interests in consolidated subsidiaries		(26,216)		(2,962)			-			(109)			-		(23,145)
Net income (loss) attributable to
	Vornado Realty L.P.		445,032		194,662			36,322			377,178			(35,102)		(128,028)
Interest and debt expense⁽²⁾			368,241		104,235			62,998			27,938			80,912		92,158
Depreciation and amortization⁽²⁾			376,316		152,986			70,396			34,867			71,556		46,511
Income tax expense⁽²⁾			38,393		1,377			1,306			749			33,649		1,312
EBITDA⁽¹⁾		$	1,227,982	$	453,260	⁽³⁾	$	171,022	⁽⁴⁾	$	440,732	⁽⁵⁾	$	151,015	$	11,953	⁽⁶⁾


See notes on the following page.


	Notes to preceding tabular information:


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

				For the Three Months					For the Six Months
				Ended June 30,					Ended June 30,
	(Amounts in thousands)				2014		2013			2014		2013
	Office				$	162,833	$	158,186		$	320,712	$	304,482
	Retail					67,947		57,230			134,142		117,612
	Alexander's					10,271		10,213			20,701		20,754
	Hotel Pennsylvania					10,278		10,094			9,572		10,412
		Total New York			$	251,329	$	235,723		$	485,127	$	453,260


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

				For the Three Months					For the Six Months
				Ended June 30,					Ended June 30,
	(Amounts in thousands)				2014		2013			2014		2013
	Office, excluding the Skyline Properties				$	67,057	$	66,136		$	134,314	$	133,243
	Skyline properties					7,073		7,543			13,572		15,705
		Total Office				74,130		73,679			147,886		148,948
	Residential					10,764		11,099			21,095		22,074
		Total Washington, DC			$	84,894	$	84,778		$	168,981	$	171,022


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

				For the Three Months					For the Six Months
				Ended June 30,					Ended June 30,
	(Amounts in thousands)				2014		2013			2014		2013
	Strip shopping centers^(a)				$	40,056	$	101,529		$	81,377	$	204,890
	Regional malls^(b)					14,124		16,877			8,083		235,842
		Total Retail properties			$	54,180	$	118,406		$	89,460	$	440,732


	(a)		The three and six months ended June 30, 2013, includes a $33,058 net gain on sale of Philadelphia (Market Street) and a $32,169 net gain on sale of San Jose (The Plant). The six months ended June 30, 2013, includes $59,599 of income pursuant to a settlement agreement with Stop & Shop.

	(b)		The six months ended June 30, 2014, includes a $20,000 non-cash impairment loss on the Springfield Town Center. The six months ended June 30, 2013, includes a $202,275 net gain on sale of Green Acres Mall.

Details of Other EBITDA [Table Text Block]


	Notes to preceding tabular information - continued:


(6)	The elements of "other" EBITDA are summarized below.

				For the Three Months						For the Six Months
				Ended June 30,						Ended June 30,
	(Amounts in thousands)				2014			2013			2014			2013
	Our share of Real Estate Fund:
		Income before net realized/unrealized gains			$	2,191		$	1,643		$	4,617		$	3,651
		Net realized gains on exited investments				18,767			-			18,767			-
		Previously recorded unrealized gains on exited investments				(8,841)			-			(5,597)			-
		Net unrealized gains on held investments				14,339			8,398			14,637			11,777
		Carried interest				11,874			10,070			13,205			11,707
	Total					38,330			20,111			45,629			27,135
	The Mart and trade shows					22,454			22,453			41,541			39,307
	555 California Street					11,506			11,022			23,572			21,651
	India real estate ventures					99			2,254			1,923			4,013
	LNR^(a)					-			-			-			20,443
	Lexington^(b)					-			-			-			6,931
	Other investments					4,288			5,760			9,207			8,877
						76,677			61,600			121,872			128,357
	Corporate general and administrative expenses^(c)					(23,022)			(24,831)			(49,004)			(47,587)
	Investment income and other, net^(c)					8,032			16,709			16,105			28,045
	Acquisition and transaction related costs					(4,083)			(3,350)			(5,867)			(3,951)
	Net gain on sale of residential condominiums and a land parcel					905			1,005			10,540			1,005
	Income (loss) from the mark-to-market of J.C. Penney
		derivative position				-			9,065			-			(13,475)
	Severance costs (primarily reduction-in-force at The Mart)					-			(1,542)			-			(4,154)
	Non-cash impairment loss on J.C. Penney common shares					-			-			-			(39,487)
	Loss on sale of J.C. Penney common shares					-			-			-			(36,800)
				$	58,509		$	58,656		$	93,646		$	11,953


	(a)		On April 19, 2013, LNR was sold for $1.053 billion.

	(b)		In the first quarter of 2013, we began accounting for our investment in Lexington as a marketable equity security - available for sale. The 2013 amount represents our share of Lexington's 2012 fourth quarter earnings which was recorded on a one-quarter lag basis.

	(c)		The amounts in these captions (for this table only) exclude income/expense from the mark-to-market of our deferred compensation plan of $2,380 and $2,492 for the three months ended June 30, 2014 and 2013, respectively, and $6,780 and $5,938 for the six months ended June 30, 2014 and 2013, respectively.

- 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