Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2012

Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEETS

				June 30, 2012
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	188,132		$	19,967	$	649	$	—		$	208,748
Investment securities available for sale	37,245			30,896		—		—			68,141
Accounts receivable - trade	—			10,825		—		—			10,825
Intercompany receivables	565			—		—		(565		)	—
Inventories	—			105,988		—		—			105,988
Deferred income taxes	38,669			2,935		—		—			41,604
Income taxes receivable, net	31,430			13,470		—		(38,482		)	6,418
Restricted assets	—			1,475		—		—			1,475
Other current assets	806			4,134		139		—			5,079
Total current assets	296,847			189,690		788		(39,047		)	448,278
Property, plant and equipment, net	1,747			56,530		—		—			58,277
Investment in Escena, net	—			—		13,206		—			13,206
Long-term investments accounted for at cost	15,541			—		826		—			16,367
Long-term investments accounted for under the equity method	5,552			—		—		—			5,552
Investments in non- consolidated real estate businesses	—			—		130,803		—			130,803
Investments in consolidated subsidiaries	229,584			—		—		(229,584		)	—
Restricted assets	1,893			7,785		—		—			9,678
Deferred income taxes	30,852			6,454		5,709		—			43,015
Intangible asset	—			107,511		—		—			107,511
Prepaid pension costs	—			10,796		—		—			10,796
Other assets	26,394			15,861		—		—			42,255
Total assets	$	608,410		$	394,627	$	151,332	$	(268,631	)	$	885,738
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—		$	24,095	$	151	$	—		$	24,246
Current portion of employee benefits	—			2,721		—		—			2,721
Accounts payable	307			3,838		86		—			4,231
Intercompany payables	—			565		—		(565		)	—
Accrued promotional expenses	—			15,733		—		—			15,733
Income taxes payable, net	—			—		45,299		(38,482		)	6,817
Accrued excise and payroll taxes payable, net	—			12,611		—		—			12,611
Litigation accruals and current payments due under the Master Settlement Agreement	—			71,708		—		—			71,708
Deferred income taxes	25,789			2,876		—		—			28,665
Accrued interest	20,888			—		—		—			20,888
Other current liabilities	4,849			6,977		652		—			12,478
Total current liabilities	51,833			141,124		46,188		(39,047		)	200,098
Notes payable, long-term debt and other obligations, less current portion	497,643			18,274		141		—			516,058
Fair value of derivatives embedded within convertible debt	120,410			—		—		—			120,410
Non-current employee benefits	23,657			21,480		—		—			45,137
Deferred income taxes	33,397			32,043		3,244		—			68,684
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	1,007			53,176		705		—			54,888
Total liabilities	727,947			266,097		50,278		(39,047		)	1,005,275
Commitments and contingencies
Stockholders' deficiency	(119,537		)	128,530		101,054		(229,584		)	(119,537		)
Total liabilities and stockholders' deficiency	$	608,410		$	394,627	$	151,332	$	(268,631	)	$	885,738

CONDENSED CONSOLIDATING BALANCE SHEETS

				December 31, 2011
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	238,262		$	2,488	$	173	$	—		$	240,923
Investment securities available for sale	50,401			26,085		—		—			76,486
Accounts receivable - trade	—			24,869		—		—			24,869
Intercompany receivables	64			—		—		(64		)	—
Inventories	—			109,228		—		—			109,228
Deferred income taxes	39,883			3,068		—		—			42,951
Income taxes receivable, net	47,484			4,984		—		(42,915		)	9,553
Restricted assets	—			1,474		—		—			1,474
Other current assets	565			3,498		194		—			4,257
Total current assets	376,659			175,694		367		(42,979		)	509,741
Property, plant and equipment, net	1,345			55,211		—		—			56,556
Investment in Escena, net	—			—		13,280		—			13,280
Long-term investments accounted for at cost	4,777			—		898		—			5,675
Long-term investments accounted for under the equity method	16,499			—		—		—			16,499
Investments in non- consolidated real estate businesses	—			—		124,469		—			124,469
Investments in consolidated subsidiaries	211,219			—		—		(211,219		)	—
Restricted assets	2,161			7,465		—		—			9,626
Deferred income taxes	18,564			6,412		6,041		—			31,017
Intangible asset	—			107,511		—		—			107,511
Prepaid pension costs	—			10,047		—		—			10,047
Other assets	28,108			15,239		—		—			43,347
Total assets	$	659,332		$	377,579	$	145,055	$	(254,198	)	$	927,768
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	16,052		$	34,651	$	141	$	—		$	50,844
Current portion of fair value of derivatives embedded within convertible debt	84,485			—		—		—			84,485
Current portion of employee benefits	—			2,690		—		—			2,690
Accounts payable	1,040			8,321		171		—			9,532
Intercompany payables	—			64		—		(64		)	—
Accrued promotional expenses	—			17,056		—		—			17,056
Income taxes payable, net	6,597			—		42,915		(42,915		)	6,597
Accrued excise and payroll taxes payable, net	—			17,992		—		—			17,992
Litigation accruals and current payments due under the Master Settlement Agreement	—			52,725		—		—			52,725
Deferred income taxes	32,558			3,327		—		—			35,885
Accrued interest	20,888			—		—		—			20,888
Other current liabilities	6,683			9,079		742		—			16,504
Total current liabilities	168,303			145,905		43,969		(42,979		)	315,198
Notes payable, long-term debt and other obligations, less current portion	479,199			13,941		216		—			493,356
Fair value of derivatives embedded within convertible debt	49,015			—		—		—			49,015
Non-current employee benefits	23,023			22,959		—		—			45,982
Deferred income taxes	27,970			30,135		2,537		—			60,642
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	852			51,010		743		—			52,605
Total liabilities	748,362			263,950		47,465		(42,979		)	1,016,798
Commitments and contingencies
Stockholders' deficiency	(89,030		)	113,629		97,590		(211,219		)	(89,030		)
Total liabilities and stockholders' deficiency	$	659,332		$	377,579	$	145,055	$	(254,198	)	$	927,768

Schedule of Condensed Income Statement

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Three Months Ended June 30, 2012
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	276,594		$	—		$	—		$	276,594
Expenses:
Cost of goods sold	—			211,752			—			—			211,752
Operating, selling, administrative and general expenses	5,223			18,419			272			—			23,914
Management fee expense	—			2,290			—			(2,290		)	—
Operating (loss) income	(5,223		)	44,133			(272		)	2,290			40,928
Other income (expenses):
Interest expense	(25,497		)	(1,006		)	(6		)	—			(26,509		)
Changes in fair value of derivatives embedded within convertible debt	(6,003		)	—			—			—			(6,003		)
Acceleration of interest expense related to debt conversion	(7,888		)	—			—			—			(7,888		)
Equity income from non-consolidated real estate businesses	—			—			5,232			—			5,232
Equity loss on long-term investments	(1,215		)	—			—			—			(1,215		)
Equity income in consolidated subsidiaries	28,924			—			—			(28,924		)	—
Management fee income	2,290			—			—			(2,290		)	—
Other, net	456			(8		)	135			—			583
(Loss) income before provision for income taxes	(14,156		)	43,119			5,089			(28,924		)	5,128
Income tax benefit (expense)	18,051			(16,973		)	(2,311		)	—			(1,233		)
Net income	3,895			26,146			2,778			(28,924		)	3,895
Comprehensive income	$	1,137		$	26,585		$	2,778		$	(29,363	)	$	1,137

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Three Months Ended June 30, 2011
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	291,180		$	—		$	—		$	291,180
Expenses:
Cost of goods sold	—			231,073			—			—			231,073
Operating, selling, administrative and general expenses	5,428			16,225			487			—			22,140
Management fee expense	—			2,209			—			(2,209		)	—
Operating (loss) income	(5,428		)	41,673			(487		)	2,209			37,967
Other income (expenses):
Interest expense	(24,764		)	(310		)	(8		)	—			(25,082		)
Change in fair value of derivatives embedded within convertible debt	9,437			—			—			—			9,437
Acceleration of interest expense related to debt conversion	(1,217		)	—			—			—			(1,217		)
Equity income from non-consolidated real estate businesses	—			—			6,197			—			6,197
Equity loss on long-term investments	(154		)	—			—			—			(154		)
Gain on investment securities available for sale	—			1,506			—			—			1,506
Gain on liquidation of long-term investments	19,475			—			—			—			19,475
Gain on sale of townhome	—			—			577			—			577
Equity income in consolidated subsidiaries	30,599			—			—			(30,599		)	—
Management fee income	2,209			—			—			(2,209		)	—
Other, net	128			12			—			—			140
Income before provision for income taxes	30,285			42,881			6,279			(30,599		)	48,846
Income tax benefit (expense)	16			(16,051		)	(2,510		)	—			(18,545		)
Net income	30,301			26,830			3,769			(30,599		)	30,301
Comprehensive income	$	28,114		$	23,024		$	3,769		$	(26,793	)	$	28,114

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Six Months Ended June 30, 2012
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	534,200		$	—		$	—		$	534,200
Expenses:
Cost of goods sold	—			411,933			—			—			411,933
Operating, selling, administrative and general expenses	11,484			36,623			(214		)	—			47,893
Management fee expense	—			4,581			—			(4,581		)	—
Operating (loss) income	(11,484		)	81,063			214			4,581			74,374
Other income (expenses):
Interest expense	(50,406		)	(2,342		)	(13		)	—			(52,761		)
Change in fair value of derivatives embedded within convertible debt	(27,060		)	—			—			—			(27,060		)
Acceleration of interest expense related to debt conversion	(7,888		)	—			—			—			(7,888		)
Equity income from non-consolidated real estate businesses	—			—			8,095			—			8,095
Equity loss on long-term investments	(1,329		)	—			—			—			(1,329		)
Equity income in consolidated subsidiaries	53,542			—			—			(53,542		)	—
Management fee income	4,581			—			—			(4,581		)	—
Other, net	361			19			135			—			515
(Loss) income before provision for income taxes	(39,683		)	78,740			8,431			(53,542		)	(6,054		)
Income tax benefit (expense)	35,888			(30,206		)	(3,423		)	—			2,259
Net (loss) income	(3,795		)	48,534			5,008			(53,542		)	(3,795		)
Comprehensive (loss) income	$	(10,896	)	$	48,349		$	5,008		$	(53,357	)	$	(10,896	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Six Months Ended June 30, 2011
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	551,558		$	—		$	—		$	551,558
Expenses:
Cost of goods sold	—			436,250			—			—			436,250
Operating, selling, administrative and general expenses	11,758			33,777			330			—			45,865
Litigation judgment expense	—			—									—
Management fee expense	—			4,417			—			(4,417		)	—
Operating (loss) income	(11,758		)	77,114			(330		)	4,417			69,443
Other income (expenses):
Interest expense	(49,250		)	(743		)	(17		)	—			(50,010		)
Change in fair value of derivatives embedded within convertible debt	8,862			—			—			—			8,862
Acceleration of interest expense related to debt conversion	(1,217		)	—			—			—			(1,217		)
Equity income from non-consolidated real estate businesses	—			—			11,101			—			11,101
Gain on investment securities available for sale	—			14,541			—			—			14,541
Gain on liquidation of long-term investments	23,611			—			—			—			23,611
Gain on sales of townhomes	—			—			3,712			—			3,712
Equity income on long-term investments	609			—			—			—			609
Equity income in consolidated subsidiaries	64,579			—			—			(64,579		)	—
Management fee income	4,417			—			—			(4,417		)	—
Other, net	194			22			—			—			216
Income before provision for income taxes	40,047			90,934			14,466			(64,579		)	80,868
Income tax benefit (expense)	9,627			(35,036		)	(5,785		)	—			(31,194		)
Net income	49,674			55,898			8,681			(64,579		)	49,674
Comprehensive income	$	42,964		$	47,655		$	8,681		$	(56,336	)	$	42,964

Schedule of Condensed Cash Flow Statement

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

				Six Months Ended June 30, 2012
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by (used in) operating activities	$	22,900		$	74,473		$	5,557		$	(45,101	)	$	57,829
Cash flows from investing activities:
Purchase of investment securities	—			(1,148		)	—			—			(1,148		)
Proceeds from sale or liquidation of long-term investments	—			—			72			—			72
Purchase of long-term investments	(5,000		)	—			—			—			(5,000		)
Investments in non-consolidated real estate businesses	—			—			(9,667		)	—			(9,667		)
Distributions from non-consolidated real estate businesses	—			—			6,221			—			6,221
Increase in cash surrender value of life insurance policies	(425		)	(195		)	—			—			(620		)
Decrease (increase) in non-current restricted assets	268			(321		)	—			—			(53		)
Issuance of notes receivable	(234		)	—			—			—			(234		)
Investments in subsidiaries	(1,008		)	—			—			1,008			—
Proceeds from sale of fixed assets	393			11			—			—			404
Capital expenditures	(961		)	(6,334		)	(99		)	—			(7,394		)
Net cash (used in) provided by investing activities	(6,967		)	(7,987		)	(3,473		)	1,008			(17,419		)
Cash flows from financing activities:
Proceeds from debt issuance	—			14,018			—			—			14,018
Deferred financing costs	—			(315		)	—			—			(315		)
Repayments of debt	—			(13,428		)	(65		)	—			(13,493		)
Borrowings under revolver	—			525,350			—			—			525,350
Repayments on revolver	—			(532,082		)	—			—			(532,082		)
Capital contributions received	—			950			58			(1,008		)	—
Intercompany dividends paid	—			(43,500		)	(1,601		)	45,101			—
Dividends and distributions on common stock	(66,112		)	—			—			—			(66,112		)
Proceeds from exercise of Vector options	45			—			—			—			45
Tax benefit of options exercised	4			—			—			—			4
Net cash (used in) provided by financing activities	(66,063		)	(49,007		)	(1,608		)	44,093			(72,585		)
Net (decrease) increase in cash and cash equivalents	(50,130		)	17,479			476			—			(32,175		)
Cash and cash equivalents, beginning of period	238,262			2,488			173			—			240,923
Cash and cash equivalents, end of period	$	188,132		$	19,967		$	649		$	—		$	208,748

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

				Six Months Ended June 30, 2011
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by (used in) operating activities	$	28,423		$	76,133		$	3,472		$	(71,441	)	$	36,587
Cash flows from investing activities:
Sale of investment securities	—			19,703			—			—			19,703
Purchase of investment securities	—			(1,788		)	—			—			(1,788		)
Proceeds from sale of or liquidation of long-term investments	62,219			—			—			—			62,219
Purchase of long-term investments	(10,000		)	—			—			—			(10,000		)
Investments in non-consolidated real estate businesses	—			—			(6,712		)	—			(6,712		)
Distributions from non-consolidated real estate businesses	—			—			2,425			—			2,425
Increase in cash surrender value of life insurance policies	(315		)	(362		)	—			—			(677		)
Decrease in non-current restricted assets	781			994			—			—			1,775
Issuance of notes receivable	(161		)	—			—			—			(161		)
Proceeds from sale of townhomes	—			—			19,629			—			19,629
Proceeds from sale of fixed assets	—			—			9			—			9
Investments in subsidiaries	(2,628		)	—			—			2,628			—
Capital expenditures	(11		)	(4,813		)	(48		)	—			(4,872		)
Net cash provided by investing activities	49,885			13,734			15,303			2,628			81,550
Cash flows from financing activities:
Proceeds from debt issuance	—			77			—			—			77
Repayments of debt	—			(2,221		)	(60		)	—			(2,281		)
Borrowings under revolver	—			486,298			—			—			486,298
Repayments on revolver	—			(521,995		)	—			—			(521,995		)
Capital contributions received	—			2,588			40			(2,628		)	—
Intercompany dividends paid	—			(53,303		)	(18,138		)	71,441			—
Dividends and distributions on common stock	(61,846		)	—			—			—			(61,846		)
Proceeds from exercise of Vector options and warrants.	966			—			—			—			966
Tax benefits from exercise of Vector options and warrants	808			—			—			—			808
Net cash (used in) provided by financing activities	(60,072		)	(88,556		)	(18,158		)	68,813			(97,973		)
Net increase in cash and cash equivalents	18,236			1,311			617			—			20,164
Cash and cash equivalents, beginning of period	283,409			16,214			202			—			299,825
Cash and cash equivalents, end of period	$	301,645		$	17,525		$	819		$	—		$	319,989