New Valley LLC

3 Months Ended

Mar. 31, 2013

New Valley LLC [Abstract]

NEW VALLEY LLC

NEW VALLEY LLC

The components of “Investments in non-consolidated real estate businesses” were as follows:

	March 31, 2013		December 31, 2012
Douglas Elliman Realty LLC	$	64,468	$	65,171
Sesto Holdings	5,037		5,037
1107 Broadway	5,839		5,566
Lofts 21	900		900
Hotel Taiwana	3,225		2,658
East 68th Street	7,000		7,000
11 Beach Street	10,137		9,642
Maryland Portfolio	4,348		4,615
701 Seventh Avenue	9,307		9,307
Queens Plaza	7,350		7,350
Chrystie Street	1,992		1,973
Investments in non-consolidated real estate businesses	$	119,603	$	119,219

Residential Brokerage Business. New Valley recorded income of $623 and $1,444 for the three months ended March 31, 2013 and 2012, respectively, associated with Douglas Elliman Realty, LLC. New Valley received cash distributions from Douglas Elliman Realty, LLC of $1,325 and $2,325 for the three months ended March 31, 2013 and 2012, respectively. The summarized financial information of Douglas Elliman Realty, LLC is as follows:

	March 31, 2013		December 31, 2012
Cash	$	75,033	$	78,015
Other current assets	7,246		8,543
Property, plant and equipment, net	15,554		15,796
Trademarks	21,663		21,663
Goodwill	38,528		38,523
Other intangible assets, net	841		897
Other non-current assets	2,735		3,182
Notes payable - current	422		466
Other current liabilities	56,068		22,065
Notes payable - long term	309		334
Other long-term liabilities	9,566		9,614
Members' equity	95,235		134,140

	Three Months Ended
	March 31,
	2013			2012
Revenues	$	74,537		$	71,175
Costs and expenses	73,614			69,226
Depreciation expense	973			815
Amortization expense	56			60
Other income	142			742
Interest expense, net	—			23
Income tax expense	(59		)	54
Net income	$	95		$	1,739

Douglas Elliman Realty is in discussions with Prudential to redeem the approximate 20% equity interest owned by a former affiliate of Prudential.  The redemption price for such equity interest is to be determined through an appraisal process in accordance with the terms of Douglas Elliman Realty's Limited Liability Company Operating Agreement. Upon completion of the redemption, Vector will own more than 50% of Douglas Elliman Realty and will consolidate Douglas Elliman Realty accordingly.

Chelsea Eleven.  In February and April 2012, Chelsea closed on the remaining utility and two residential units of the 54 unit building and the project is concluded. The Company has received net distributions of $715 from New Valley Oaktree Chelsea Eleven LLC for the three months ended March 31, 2012. Chelsea was a variable interest entity; however, the Company was not the primary beneficiary. New Valley accounted for its 40% interest in New Valley Oaktree Chelsea Eleven, LLC under the equity method of accounting. New Valley recorded equity income $1,667 for the three months ended March 31, 2012, related to New Valley Chelsea. New Valley had no exposure to loss as a result of its investment in Chelsea as of March 31, 2013.

Hotel Taiwana. New Valley and its partners contributed additional capital in March 2013 and April 2013. New Valley contributed an additional $567 in February 2013 and $3,088 in April 2013, along with other investment partners of Hill. New Valley's investment percentage did not change from year end. Hill will use the contributions to purchase the remaining interest in Hotel Taiwana.

Consolidated real estate investments:

The components of “Investments in consolidated real estate businesses, net” were as follows:

	March 31, 2013		December 31, 2012
Escena, net	$	13,213	$	13,295
Indian Creek	9,520		—
Investment in consolidated real estate businesses, net	$	22,733	$	13,295

Investment in Escena. The components of the Company's investment in Escena are as follows:

	March 31, 2013			December 31, 2012
Land and land improvements	$	11,430		$	11,430
Building and building improvements	1,530			1,530
Other	1,385			1,374
	14,345			14,334
Less accumulated depreciation	(1,132		)	(1,039		)
	$	13,213		$	13,295

The Company recorded operating income of $383 and $610 for the three months ended March 31, 2013 and 2012, respectively, from Escena.

Investment in Indian Creek. In March 2013, New Valley invested $7,616 for an approximate 80% interest in Timbo LLC ("Indian Creek") which owns a residential real estate conversion project located on Indian Creek, Florida. As a result of the 80% ownership interest, the consolidated financial statements of the Company include the balances of Indian Creek which included land and building of approximately $9,520, equity interest of $7,616 and a minority interest of $1,904.