Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEETS

				September 30, 2014
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	257,309		$	19,498	$	103,609	$	—		$	380,416
Investment securities available for sale	274,249			59,634		—		—			333,883
Accounts receivable - trade, net	—			11,231		2,376		—			13,607
Intercompany receivables	472			158		—		(630		)	—
Inventories	—			100,874		—		—			100,874
Deferred income taxes	21,497			4,043		—		—			25,540
Income taxes receivable, net	23,429			—		—		(8,617		)	14,812
Restricted assets	—			1,366		1,414		—			2,780
Other current assets	478			12,676		21,072		—			34,226
Total current assets	577,434			209,480		128,471		(9,247		)	906,138
Property, plant and equipment, net	2,896			62,940		20,786		—			86,622
Real estate held for sale, net	—			—		10,643		—			10,643
Long-term investments accounted for at cost	31,541			—		698		—			32,239
Long-term investments accounted for under the equity method	13,977			—		—		—			13,977
Investments in real estate ventures	—			—		154,281		—			154,281
Investments in consolidated subsidiaries	478,744			—		—		(478,744		)	—
Restricted assets	1,707			10,356		—		—			12,063
Deferred income taxes	56,586			8,174		5,556		—			70,316
Goodwill, trademarks and other intangible assets, net	—			107,511		160,630		—			268,141
Prepaid pension costs	—			28,165		—		—			28,165
Other assets	47,873			10,595		2,330		—			60,798
Total assets	$	1,210,758		$	437,221	$	483,395	$	(487,991	)	$	1,643,383
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	88,169		$	12,781	$	208	$	—		$	101,158
Current portion of fair value of derivatives embedded within convertible debt	2,996			—		—		—			2,996
Current portion of employee benefits	—			939		—		—			939
Accounts payable	902			4,778		5,165		—			10,845
Intercompany payables	—			—		630		(630		)	—
Accrued promotional expenses	—			20,010		—		—			20,010
Income taxes payable, net	—			11,791		—		(8,617		)	3,174
Accrued excise and payroll taxes payable, net	—			861		—		—			861
Litigation accruals and current payments due under the Master Settlement Agreement	—			94,897		—		—			94,897
Deferred income taxes	44,164			13,599		—		—			57,763
Accrued interest	17,721			—		—		—			17,721
Other current liabilities	5,131			9,232		19,893		—			34,256
Total current liabilities	159,083			168,888		25,896		(9,247		)	344,620
Notes payable, long-term debt and other obligations, less current portion	847,318			9,517		272		—			857,107
Fair value of derivatives embedded within convertible debt	180,474			—		—		—			180,474
Non-current employee benefits	32,562			16,046		—		—			48,608
Deferred income taxes	80,046			39,867		45,813		—			165,726
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	1,265			51,133		2,317		—			54,715
Total liabilities	1,300,748			285,451		74,298		(9,247		)	1,651,250
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(89,990		)	151,770		326,974		(478,744		)	(89,990		)
Non-controlling interest	—			—		82,123		—			82,123
Total stockholders' (deficiency) equity	(89,990		)	151,770		409,097		(478,744		)	(7,867		)
Total liabilities and stockholders' deficiency	$	1,210,758		$	437,221	$	483,395	$	(487,991	)	$	1,643,383

CONDENSED CONSOLIDATING BALANCE SHEETS

				December 31, 2013
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	151,342		$	11,812	$	71,312	$	—		$	234,466
Investment securities available for sale	114,886			57,648		—		—			172,534
Accounts receivable - trade, net	—			10,154		2,005		—			12,159
Intercompany receivables	509			—		—		(509		)	—
Inventories	—			93,496		—		—			93,496
Deferred income taxes	45,578			4,901		—		—			50,479
Income taxes receivable, net	—			10,447		—		(10,447		)	—
Restricted assets	—			1,060		725		—			1,785
Other current assets	513			12,579		10,300		—			23,392
Total current assets	312,828			202,097		84,342		(10,956		)	588,311
Property, plant and equipment, net	3,641			55,093		20,524		—			79,258
Real estate held for sale, net	—			—		20,911		—			20,911
Long-term investments accounted for at cost	20,041			—		747		—			20,788
Long-term investments accounted for under the equity method	8,595			—		—		—			8,595
Investments in real estate ventures	—			—		128,202		—			128,202
Investments in consolidated subsidiaries	410,442			—		—		(410,442		)	—
Restricted assets	1,895			10,086		—		—			11,981
Deferred income taxes	35,000			12,766		3,708		—			51,474
Goodwill, trademarks and other intangible assets, net	—			107,511		163,600		—			271,111
Prepaid pension costs	—			26,080		—		—			26,080
Other assets	38,374			10,126		5,053		—			53,553
Total assets	$	830,816		$	423,759	$	427,087	$	(421,398	)	$	1,260,264
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	112,275		$	39,013	$	289	$	—		$	151,577
Current portion of fair value of derivatives embedded within convertible debt	19,128			—		—		—			19,128
Current portion of employee benefits	—			939		—		—			939
Accounts payable	1,509			4,136		4,615		—			10,260
Intercompany payables	—			39		470		(509		)	—
Accrued promotional expenses	—			18,655		—		—			18,655
Income taxes payable, net	16,870			—		—		(10,447		)	6,423
Accrued excise and payroll taxes payable, net	—			11,621		—		—			11,621
Litigation accruals and current payments due under the Master Settlement Agreement	—			84,658		—		—			84,658
Deferred income taxes	32,309			13,425		—		—			45,734
Accrued interest	21,968			—		—		—			21,968
Other current liabilities	6,103			10,495		17,549		—			34,147
Total current liabilities	210,162			182,981		22,923		(10,956		)	405,110
Notes payable, long-term debt and other obligations, less current portion	524,182			12,573		4,011		—			540,766
Fair value of derivatives embedded within convertible debt	92,934			—		—		—			92,934
Non-current employee benefits	31,462			16,455		—		—			47,917
Deferred income taxes	65,759			37,602		34,289		—			137,650
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	1,353			54,924		1,219		—			57,496
Total liabilities	925,852			304,535		62,442		(10,956		)	1,281,873
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(95,036		)	119,224		291,218		(410,442		)	(95,036		)
Non-controlling interest	—			—		73,427		—			73,427
Total stockholders' (deficiency) equity	(95,036		)	119,224		364,645		(410,442		)	(21,609		)
Total liabilities and stockholders' deficiency	$	830,816		$	423,759	$	427,087	$	(421,398	)	$	1,260,264

Schedule of Condensed Income Statement

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Three Months Ended September 30, 2014
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	266,328		$	153,748		$	(200	)	$	419,876
Expenses:
Cost of sales	—			190,794			96,442			—			287,236
Operating, selling, administrative and general expenses	6,099			22,395			41,137			(200		)	69,431
Litigation settlement and judgment expense	—			225			—			—			225
Management fee expense	—			2,467			—			(2,467		)	—
Operating (loss) income	(6,099		)	50,447			16,169			2,467			62,984
Other income (expenses):
Interest expense	(43,005		)	(1,026		)	(3		)	—			(44,034		)
Change in fair value of derivatives embedded within convertible debt	7,127			—			—			—			7,127
Acceleration of interest expense related to debt conversion	(994		)	—			—			—			(994		)
Equity income from real estate ventures	—			—			3,258			—			3,258
Equity income on long-term investments	829			—			—			—			829
Gain on sale of investment securities available for sale	33			—			—			—			33
Equity income in consolidated subsidiaries	36,428			—			—			(36,428		)	—
Management fee income	2,467			—			—			(2,467		)	—
Other, net	1,936			296			234			—			2,466
Income (loss) before provision for income taxes	(1,278		)	49,717			19,658			(36,428		)	31,669
Income tax benefit (expense)	16,157			(21,491		)	(6,630		)	—			(11,964		)
Net income	14,879			28,226			13,028			(36,428		)	19,705
Net income attributed to non-controlling interest	—			—			(4,826		)	—			(4,826		)
Net income attributed to Vector Group Ltd.	14,879			28,226			8,202			(36,428		)	14,879
Comprehensive income attributed to non-controlling interest	—			—			(4,826		)	—			(4,826		)
Comprehensive income attributed to Vector Group	$	23,894		$	28,367		$	8,202		$	(36,569	)	$	23,894

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Three Months Ended September 30, 2013
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	271,516		$	6,425		$	—		$	277,941
Expenses:
Cost of sales	—			194,991			5,844			—			200,835
Operating, selling, administrative and general expenses	4,968			19,990			1,520			—			26,478
Litigation judgment expense	—			87,913			—			—			87,913
Management fee expense	—			2,377			—			(2,377		)	—
Operating (loss) income	(4,968		)	(33,755		)	(939		)	2,377			(37,285		)
Other income (expenses):
Interest expense	(32,978		)	(602		)	(3		)	—			(33,583		)
Change in fair value of derivatives embedded within convertible debt	2,800			—			—			—			2,800
Equity income from real estate ventures	—			—			9,489			—			9,489
Equity loss on long-term investments	(53		)	—			—			—			(53		)
Loss on sale of investment securities available for sale	(99		)	—			—			—			(99		)
Equity loss in consolidated subsidiaries	(11,514		)	—			—			11,514			—
Management fee income	2,377			—			—			(2,377		)	—
Other, net	603			2,270			(2		)	—			2,871
(Loss) income before provision for income taxes	(43,832		)	(32,087		)	8,545			11,514			(55,860		)
Income tax benefit (expense)	6,941			15,521			(3,493		)	—			18,969
Net (loss) income	(36,891		)	(16,566		)	5,052			11,514			(36,891		)
Comprehensive (loss) income	$	(28,536	)	$	(11,923	)	$	5,052		$	6,871		$	(28,536	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Nine Months Ended September 30, 2014
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	758,645		$	415,280		$	(200	)	$	1,173,725
Expenses:
Cost of sales	—			544,024			261,531			—			805,555
Operating, selling, administrative and general expenses	17,315			66,270			117,046			(200		)	200,431
Litigation settlement and judgment expense	—			1,725			—			—			1,725
Management fee expense	—			7,402			—			(7,402		)	—
Operating (loss) income	(17,315		)	139,224			36,703			7,402			166,014
Other income (expenses):
Interest expense	(120,977		)	(3,265		)	(40		)	612			(123,670		)
Change in fair value of derivatives embedded within convertible debt	7,447			—			—			—			7,447
Acceleration of interest expense related to debt conversion	(5,112		)	—			—			—			(5,112		)
Equity income from real estate ventures	—			—			3,002			—			3,002
Equity income on long-term investments	1,462			—			—			—			1,462
Loss on sale of investment securities available for sale	(38		)	—			—			—			(38		)
Equity income in consolidated subsidiaries	96,554			—			—			(96,554		)	—
Management fee income	7,402			—			—			(7,402		)	—
Other, net	3,702			780			4,297			(612		)	8,167
(Loss) income before provision for income taxes	(26,875		)	136,739			43,962			(96,554		)	57,272
Income tax benefit (expense)	52,259			(57,846		)	(15,420		)	—			(21,007		)
Net income	25,384			78,893			28,542			(96,554		)	36,265
Net income attributed to non-controlling interest	—			—			(10,881		)	—			(10,881		)
Net income attributed to Vector Group Ltd.	25,384			78,893			17,661			(96,554		)	25,384
Comprehensive income attributed to non-controlling interest	—			—			(10,881		)	—			(10,881		)
Comprehensive income attributed to Vector Group Ltd.	$	41,218		$	79,026		$	17,661		$	(96,687	)	$	41,218

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Nine Months Ended September 30, 2013
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	761,038		$	19,298		$	—		$	780,336
Expenses:
Cost of sales	—			548,377			16,080			—			564,457
Operating, selling, administrative and general expenses	16,350			56,939			4,626			—			77,915
Litigation judgment expense	—			87,913									87,913
Management fee expense	—			7,131			—			(7,131		)	—
Operating (loss) income	(16,350		)	60,678			(1,408		)	7,131			50,051
Other income (expenses):
Interest expense	(97,661		)	(1,374		)	(10		)	—			(99,045		)
Change in fair value of derivatives embedded within convertible debt	8,299			—			—			—			8,299
Loss on extinguishment of debt	(21,458		)	—			—			—			(21,458		)
Equity income from real estate ventures	—			—			16,774			—			16,774
(Loss) gain on sale of investment securities available for sale	(296		)	5,406			—			—			5,110
Equity income on long-term investments	770			—			—			—			770
Equity income in consolidated subsidiaries	52,051			—			—			(52,051		)	—
Management fee income	7,131			—			—			(7,131		)	—
Other, net	2,550			2,475			126			—			5,151
(Loss) income before provision for income taxes	(64,964		)	67,185			15,482			(52,051		)	(34,348		)
Income tax benefit (expense)	39,903			(24,270		)	(6,346		)	—			9,287
Net (loss) income	(25,061		)	42,915			9,136			(52,051		)	(25,061		)
Comprehensive (loss) income	$	(9,670	)	$	49,701		$	9,136		$	(58,837	)	$	(9,670	)

Schedule of Condensed Cash Flow Statement

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

				Nine Months Ended September 30, 2014
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	23,189		$	98,319		$	53,475		$	(74,939	)	$	100,044
Cash flows from investing activities:
Sale of investment securities	174,253			—			—			—			174,253
Purchase of investment securities	(310,934		)	(1,985		)	—			—			(312,919		)
Proceeds from sale or liquidation of long-term investments	500			—			49			—			549
Purchase of long-term investments	(12,000		)	—			—			—			(12,000		)
Investments in real estate ventures	—			—			(29,378		)	—			(29,378		)
Purchase of subsidiaries	—			—			(250		)	—			(250		)
Distributions from real estate ventures	—			—			5,540			—			5,540
Increase in cash surrender value of life insurance policies	—			(435		)	—			—			(435		)
Decrease (increase) in restricted assets	188			(607		)	(689		)	—			(1,108		)
Issuance of notes receivable	(35,000		)	—			(250		)	35,000			(250		)
Investments in subsidiaries	(49,834		)	—			—			49,834			—
Proceeds from sale of fixed assets	—			4			—			—			4
Capital expenditures	(11		)	(15,121		)	(5,614		)	—			(20,746		)
Repayments of notes receivable	35,933			—			—			(35,000		)	933
Net cash used in investing activities	(196,905		)	(18,144		)	(30,592		)	49,834			(195,807		)
Cash flows from financing activities:
Proceeds from debt issuance	408,750			40,168			—			(35,000		)	413,918
Financing costs	(12,360		)	—			—			—			(12,360		)
Repayments of debt	—			(41,485		)	(3,820		)	35,000			(10,305		)
Borrowings under revolver	—			645,894			—			—			645,894
Repayments on revolver	—			(673,866		)	—			—			(673,866		)
Capital contributions received	—			10,800			39,034			(49,834		)	—
Intercompany dividends paid	—			(54,000		)	(20,939		)	74,939			—
Dividends and distributions on common stock	(122,051		)	—			—			—			(122,051		)
Distributions to non-controlling interest	—			—			(4,861		)	—			(4,861		)
Proceeds from exercise of Vector options	4,407			—			—			—			4,407
Tax benefit of options exercised	937			—			—			—			937
Net cash provided by (used in) financing activities	279,683			(72,489		)	9,414			25,105			241,713
Net increase in cash and cash equivalents	105,967			7,686			32,297			—			145,950
Cash and cash equivalents, beginning of period	151,342			11,812			71,312			—			234,466
Cash and cash equivalents, end of period	$	257,309		$	19,498		$	103,609		$	—		$	380,416

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

				Nine Months Ended September 30, 2013
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	44,750		$	127,382		$	1,524		$	(118,412	)	$	55,244
Cash flows from investing activities:
Sale of investment securities	76,067			6,582			—			—			82,649
Purchase of investment securities	(117,982		)	(11,501		)	—			—			(129,483		)
Proceeds from sale of or liquidation of long-term investments	—			—			75			—			75
Purchase of long-term investments	(5,000		)	—			—			—			(5,000		)
Investments in real estate ventures	—			—			(45,977		)	—			(45,977		)
Investments in real estate held for sale	—			—			(7,697		)	—			(7,697		)
Distributions from real estate ventures	—			—			2,463			—			2,463
Increase in cash surrender value of life insurance policies	(20		)	(450		)	—			—			(470		)
Decrease (increase) in restricted assets	5			(558		)	—			—			(553		)
Repayments of notes receivable	9,460			—			—			—			9,460
Proceeds from sale of fixed assets	—			11			—			—			11
Investments in subsidiaries	(72,962		)	—			—			72,962			—
Capital expenditures	(2,320		)	(5,813		)	(553		)	—			(8,686		)
Net cash used in investing activities	(112,752		)	(11,729		)	(51,689		)	72,962			(103,208		)
Cash flows from financing activities:
Proceeds from debt issuance	450,000			1,120			3,080			—			454,200
Financing costs	(11,750		)	—			—			—			(11,750		)
Repayments of debt	(415,000		)	(5,604		)	(106		)	—			(420,710		)
Borrowings under revolver	—			723,578			—			—			723,578
Repayments on revolver	—			(736,007		)	—			—			(736,007		)
Capital contributions received	—			13,250			59,712			(72,962		)	—
Intercompany dividends paid	—			(105,882		)	(12,530		)	118,412			—
Dividends and distributions on common stock	(107,302		)	—			—			—			(107,302		)
Proceeds from exercise of Vector options	528			—			—			—			528
Tax benefits from exercise of Vector options	33			—			—			—			33
Net cash (used in) provided by financing activities	(83,491		)	(109,545		)	50,156			45,450			(97,430		)
Net (decrease) increase in cash and cash equivalents	(151,493		)	6,108			(9		)	—			(145,394		)
Cash and cash equivalents, beginning of period	401,344			3,776			735			—			405,855
Cash and cash equivalents, end of period	$	249,851		$	9,884		$	726		$	—		$	260,461