Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2013

Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEETS

				June 30, 2013
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	273,219		$	7,779	$	715	$	—		$	281,713
Investment securities available for sale	83,019			51,122		—		—			134,141
Accounts receivable - trade, net	—			12,257		238		—			12,495
Intercompany receivables	879			—		—		(879		)	—
Inventories	—			96,761		—		—			96,761
Deferred income taxes	28,804			3,213		—		—			32,017
Income taxes receivable, net	44,764			—		—		(28,133		)	16,631
Restricted assets	—			1,241		—		—			1,241
Other current assets	479			4,548		193		—			5,220
Total current assets	431,164			176,921		1,146		(29,012		)	580,219
Property, plant and equipment, net	4,115			53,408		544		—			58,067
Investment in consolidated real estate businesses, net	—			—		23,200		—			23,200
Long-term investments accounted for at cost	20,540			—		752		—			21,292
Long-term investments accounted for under the equity method	6,671			—		—		—			6,671
Investments in non-consolidated real estate businesses	—			—		142,878		—			142,878
Investments in consolidated subsidiaries	265,105			—		—		(265,105		)	—
Restricted assets	1,892			10,365		31		—			12,288
Deferred income taxes	39,627			8,643		5,870		—			54,140
Intangible asset	—			107,511		—		—			107,511
Prepaid pension costs	—			13,787		—		—			13,787
Other assets	39,568			9,920		2		—			49,490
Total assets	$	808,682		$	380,555	$	174,423	$	(294,117	)	$	1,069,543
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—		$	33,752	$	154	$	—		$	33,906
Current portion of employee benefits	—			2,824		—		—			2,824
Accounts payable	782			5,025		113		—			5,920
Intercompany payables	—			493		386		(879		)	—
Accrued promotional expenses	—			17,618		—		—			17,618
Income taxes payable	—			449		34,107		(28,133		)	6,423
Accrued excise and payroll taxes payable, net	—			1,208		—		—			1,208
Litigation accruals and current payments due under the Master Settlement Agreement	—			59,966		—		—			59,966
Deferred income taxes	21,328			10,702		—		—			32,030
Accrued interest	22,398			—		—		—			22,398
Other current liabilities	3,872			7,917		1,291		—			13,080
Total current liabilities	48,380			139,954		36,051		(29,012		)	195,373
Notes payable, long-term debt and other obligations, less current portion	623,215			11,567		3,570		—			638,352
Fair value of derivatives embedded within convertible debt	166,629			—		—		—			166,629
Non-current employee benefits	26,436			19,941		—		—			46,377
Deferred income taxes	72,616			35,306		4,522		—			112,444
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	908			37,504		1,458		—			39,870
Total liabilities	938,184			244,272		45,601		(29,012		)	1,199,045
Commitments and contingencies
Stockholders' deficiency	(129,502		)	136,283		128,822		(265,105		)	(129,502		)
Total liabilities and stockholders' deficiency	$	808,682		$	380,555	$	174,423	$	(294,117	)	$	1,069,543

CONDENSED CONSOLIDATING BALANCE SHEETS

				December 31, 2012
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	401,344		$	3,776	$	735	$	—		$	405,855
Investment securities available for sale	35,330			34,654		—		—			69,984
Accounts receivable - trade, net	—			11,183		64		—			11,247
Intercompany receivables	354			—		—		(354		)	—
Inventories	—			100,392		—		—			100,392
Deferred income taxes	33,238			3,371		—		—			36,609
Income taxes receivable, net	33,302			—		—		(26,523		)	6,779
Restricted assets	—			2,469		—		—			2,469
Other current assets	665			4,848		208		—			5,721
Total current assets	504,233			160,693		1,007		(26,877		)	639,056
Property, plant and equipment, net	2,104			54,810		239		—			57,153
Investment in consolidated real estate businesses, net	—			—		13,295		—			13,295
Long-term investments accounted for at cost	15,540			—		827		—			16,367
Long-term investments accounted for under the equity method	6,432			—		—		—			6,432
Investments in non- consolidated real estate businesses	—			—		119,219		—			119,219
Investments in consolidated subsidiaries	210,525			—		—		(210,525		)	—
Restricted assets	1,898			7,863		31		—			9,792
Deferred income taxes	38,077			5,669		5,396		—			49,142
Intangible asset	—			107,511		—		—			107,511
Prepaid pension costs	—			12,870		—		—			12,870
Other assets	39,534			16,144		216		—			55,894
Total assets	$	818,343		$	365,560	$	140,230	$	(237,402	)	$	1,086,731
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—		$	36,617	$	161	$	—		$	36,778
Current portion of employee benefits	—			2,824		—		—			2,824
Accounts payable	661			5,173		265		—			6,099
Intercompany payables	—			64		290		(354		)	—
Accrued promotional expenses	—			18,730		—		—			18,730
Income taxes payable	—			1,445		31,347		(26,523		)	6,269
Accrued excise and payroll taxes payable, net	—			20,419		—		—			20,419
Litigation accruals and current payments due under the Master Settlement Agreement	—			34,440		—		—			34,440
Deferred income taxes	23,304			3,995		—		—			27,299
Accrued interest	25,410			—		—		—			25,410
Other current liabilities	5,545			9,658		1,688		—			16,891
Total current liabilities	54,920			133,365		33,751		(26,877		)	195,159
Notes payable, long-term debt and other obligations, less current portion	572,023			14,860		63		—			586,946
Fair value of derivatives embedded within convertible debt	172,128			—		—		—			172,128
Non-current employee benefits	25,599			20,261		—		—			45,860
Deferred income taxes	71,777			33,793		3,962		—			109,532
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	1,148			54,506		704		—			56,358
Total liabilities	897,595			256,785		38,480		(26,877		)	1,165,983
Commitments and contingencies
Stockholders' deficiency	(79,252		)	108,775		101,750		(210,525		)	(79,252		)
Total liabilities and stockholders' deficiency	$	818,343		$	365,560	$	140,230	$	(237,402	)	$	1,086,731

Schedule of Condensed Income Statement

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Three Months Ended June 30, 2013
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	249,120		$	—		$	—		$	249,120
Expenses:
Cost of goods sold	—			180,430			—			—			180,430
Operating, selling, administrative and general expenses	5,506			18,455			489			—			24,450
Management fee expense	—			2,377			—			(2,377		)	—
Operating (loss) income	(5,506		)	47,858			(489		)	2,377			44,240
Other income (expenses):
Interest expense	(31,723		)	(360		)	(3		)	—			(32,086		)
Change in fair value of derivatives embedded within convertible debt	2,450			—			—			—			2,450
Equity income from non-consolidated real estate businesses	—			—			6,804			—			6,804
Equity income on long-term investments	846			—			—			—			846
Loss on investment securities available for sale	(197		)	—			—			—			(197		)
Equity income in consolidated subsidiaries	32,277			—			—			(32,277		)	—
Management fee income	2,377			—			—			(2,377		)	—
Other, net	1,245			150			76			—			1,471
Income before provision for income taxes	1,769			47,648			6,388			(32,277		)	23,528
Income tax benefit (expense)	11,742			(19,134		)	(2,625		)	—			(10,017		)
Net income	13,511			28,514			3,763			(32,277		)	13,511
Comprehensive income	$	14,633		$	27,179		$	3,763		$	(30,942	)	$	14,633

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		)
Change 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

				Six Months Ended June 30, 2013
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	489,522		$	—		$	—		$	489,522
Expenses:
Cost of goods sold	—			353,386			—			—			353,386
Operating, selling, administrative and general expenses	11,382			36,949			469			—			48,800
Management fee expense	—			4,754			—			(4,754		)	—
Operating (loss) income	(11,382		)	94,433			(469		)	4,754			87,336
Other income (expenses):
Interest expense	(64,683		)	(772		)	(7		)	—			(65,462		)
Change in fair value of derivatives embedded within convertible debt	5,499			—			—			—			5,499
Loss on extinguishment of debt	(21,458		)	—			—			—			(21,458		)
Equity income from non-consolidated real estate businesses	—			—			7,285			—			7,285
Equity income on long-term investments	823			—			—			—			823
(Loss) gain on investment securities available for sale	(197		)	5,406			—			—			5,209
Equity income in consolidated subsidiaries	63,565			—			—			(63,565		)	—
Management fee income	4,754			—			—			(4,754		)	—
Other, net	1,947			205			128			—			2,280
(Loss) income before provision for income taxes	(21,132		)	99,272			6,937			(63,565		)	21,512
Income tax benefit (expense)	32,962			(39,791		)	(2,853		)	—			(9,682		)
Net income	11,830			59,481			4,084			(63,565		)	11,830
Comprehensive income	$	18,866		$	61,624		$	4,084		$	(65,708	)	$	18,866

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	)

Schedule of Condensed Cash Flow Statement

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

				Six Months Ended June 30, 2013
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	5,204		$	57,823		$	2,187		$	(60,024	)	$	5,190
Cash flows from investing activities:
Sale of investment securities	36,533			6,582			—			—			43,115
Purchase of investment securities	(79,368		)	(11,000		)	—			—			(90,368		)
Proceeds from sale or liquidation of long-term investments	—			—			75			—			75
Purchase of long-term investments	(5,000		)	—			—			—			(5,000		)
Investments in non-consolidated real estate businesses	—			—			(19,048		)	—			(19,048		)
Investments in consolidated real estate businesses	—			—			(7,657		)				(7,657		)
Decrease (increase) in cash surrender value of life insurance policies	79			(382		)	—						(303		)
Decrease (increase) in restricted assets	6			(1,274		)	—						(1,268		)
Investments in subsidiaries	(43,584		)	—			—			43,584			—
Proceeds from sale of fixed assets	—			13			—						13
Capital expenditures	(2,247		)	(3,319		)	(429		)				(5,995		)
Repayments of notes receivable	8,433			—			—			—			8,433
Net cash used in investing activities	(85,148		)	(9,380		)	(27,059		)	43,584			(78,003		)
Cash flows from financing activities:
Proceeds from debt issuance	450,000			—			3,080						453,080
Deferred financing costs	(11,663		)	—			—						(11,663		)
Repayments of debt	(415,000		)	(3,763		)	(70		)				(418,833		)
Borrowings under revolver	—			474,493			—						474,493
Repayments on revolver	—			(476,888		)	—						(476,888		)
Capital contributions received	—			12,300			31,284			(43,584		)	—
Intercompany dividends paid	—			(50,582		)	(9,442		)	60,024			—
Dividends and distributions on common stock	(71,518		)	—			—						(71,518		)
Net cash (used in) provided by financing activities	(48,181		)	(44,440		)	24,852			16,440			(51,329		)
Net (decrease) increase in cash and cash equivalents	(128,125		)	4,003			(20		)	—			(124,142		)
Cash and cash equivalents, beginning of period	401,344			3,776			735			—			405,855
Cash and cash equivalents, end of period	$	273,219		$	7,779		$	715		$	—		$	281,713

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 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 of 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 restricted assets	268			(321		)	—			—			(53		)
Issuance of notes receivable	(234		)	—			—			—			(234		)
Proceeds from sale of fixed assets	393			11			—			—			404
Investments in subsidiaries	(1,008		)	—			—			1,008			—
Capital expenditures	(961		)	(6,334		)	(99		)	—			(7,394		)
Net cash used in 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 benefits from exercise of Vector options	4			—			—			—			4
Net cash used in 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