Delaware | 1-5759 | 65-0949535 |
(State or other jurisdiction of incorporation | Commission File Number | (I.R.S. Employer Identification No.) |
incorporation or organization) |
x Large accelerated filer | o Accelerated filer | o Non-accelerated filer | o Smaller reporting company |
(Do not check if a smaller reporting company) |
Page | |
PART I. FINANCIAL INFORMATION | |
Item 1. Vector Group Ltd. Condensed Consolidated Financial Statements (Unaudited): | |
June 30, 2016 | December 31, 2015 | ||||||
ASSETS: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 474,738 | $ | 240,368 | |||
Investment securities available for sale | 160,854 | 181,976 | |||||
Accounts receivable - trade, net | 25,076 | 23,889 | |||||
Inventories | 92,735 | 86,516 | |||||
Income taxes receivable, net | 218 | 2,841 | |||||
Restricted assets | 9,437 | 9,195 | |||||
Other current assets | 40,163 | 38,954 | |||||
Total current assets | 803,221 | 583,739 | |||||
Property, plant and equipment, net | 71,904 | 75,632 | |||||
Investments in real estate, net | 23,328 | 23,318 | |||||
Long-term investments | 59,369 | 62,726 | |||||
Investments in real estate ventures | 206,139 | 217,168 | |||||
Restricted assets | 9,386 | 12,303 | |||||
Goodwill and other intangible assets, net | 262,866 | 263,959 | |||||
Prepaid pension costs | 21,302 | 20,650 | |||||
Other assets | 21,985 | 21,120 | |||||
Total assets | $ | 1,479,500 | $ | 1,280,615 | |||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY: | |||||||
Current liabilities: | |||||||
Current portion of notes payable and long-term debt | $ | 16,615 | $ | 8,919 | |||
Current payments due under the Master Settlement Agreement | 56,972 | 29,241 | |||||
Current portion of employee benefits | 914 | 915 | |||||
Income taxes payable, net | — | 96 | |||||
Litigation accruals | 3,514 | 22,904 | |||||
Other current liabilities | 140,388 | 154,217 | |||||
Total current liabilities | 218,403 | 216,292 | |||||
Notes payable, long-term debt and other obligations, less current portion | 1,110,731 | 856,108 | |||||
Fair value of derivatives embedded within convertible debt | 126,932 | 144,042 | |||||
Non-current employee benefits | 55,308 | 55,055 | |||||
Deferred income taxes, net | 87,914 | 79,429 | |||||
Payments due under the Master Settlement Agreement | 22,257 | 20,094 | |||||
Litigation accruals | 22,619 | 24,718 | |||||
Other liabilities | 10,772 | 7,038 | |||||
Total liabilities | 1,654,936 | 1,402,776 | |||||
Commitments and contingencies (Note 7) | |||||||
Stockholders' deficiency: | |||||||
Preferred stock, par value $1.00 per share, 10,000,000 shares authorized | — | — | |||||
Common stock, par value $0.10 per share, 250,000,000 shares authorized, 123,842,329 and 123,792,329 shares issued and outstanding | 12,384 | 12,379 | |||||
Accumulated deficit | (261,370 | ) | (210,113 | ) | |||
Accumulated other comprehensive income | (8,539 | ) | (8,313 | ) | |||
Total Vector Group Ltd. stockholders' deficiency | (257,525 | ) | (206,047 | ) | |||
Non-controlling interest | 82,089 | 83,886 | |||||
Total stockholders' deficiency | (175,436 | ) | (122,161 | ) | |||
Total liabilities and stockholders' deficiency | $ | 1,479,500 | $ | 1,280,615 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Tobacco* | $ | 255,498 | $ | 254,890 | $ | 476,513 | $ | 482,975 | |||||||
Real estate | 182,765 | 161,022 | 342,512 | 293,278 | |||||||||||
E-Cigarettes | 10 | 261 | 48 | 680 | |||||||||||
Total revenues | 438,273 | 416,173 | 819,073 | 776,933 | |||||||||||
Expenses: | |||||||||||||||
Cost of sales: | |||||||||||||||
Tobacco* | 168,607 | 174,867 | 305,345 | 331,897 | |||||||||||
Real estate | 115,017 | 103,870 | 214,695 | 188,228 | |||||||||||
E-Cigarettes | 7 | 467 | 13 | 1,097 | |||||||||||
Total cost of sales | 283,631 | 279,204 | 520,053 | 521,222 | |||||||||||
Operating, selling, administrative and general expenses | 83,922 | 79,916 | 163,750 | 154,097 | |||||||||||
Litigation settlement and judgment expense | — | 1,250 | 2,350 | 2,093 | |||||||||||
Restructuring charges | — | — | 41 | — | |||||||||||
Operating income | 70,720 | 55,803 | 132,879 | 99,521 | |||||||||||
Other income (expenses): | |||||||||||||||
Interest expense | (36,369 | ) | (31,761 | ) | (67,089 | ) | (63,507 | ) | |||||||
Change in fair value of derivatives embedded within convertible debt | 7,416 | 5,256 | 17,110 | 11,716 | |||||||||||
Equity in earnings from real estate ventures | 2,813 | 1,856 | 2,306 | 2,194 | |||||||||||
Equity in earnings (losses) from investments | 1,089 | (2,163 | ) | (582 | ) | (1,551 | ) | ||||||||
Gain (loss) on sale of investment securities available for sale | 139 | (190 | ) | 706 | 12,839 | ||||||||||
Impairment of investment securities available for sale | (49 | ) | — | (4,862 | ) | — | |||||||||
Other, net | 581 | 1,821 | 1,628 | 3,758 | |||||||||||
Income before provision for income taxes | 46,340 | 30,622 | 82,096 | 64,970 | |||||||||||
Income tax expense | 19,003 | 11,178 | 33,366 | 24,045 | |||||||||||
Net income | 27,337 | 19,444 | 48,730 | 40,925 | |||||||||||
Net income attributed to non-controlling interest | (3,322 | ) | (1,837 | ) | (5,377 | ) | (2,097 | ) | |||||||
Net income attributed to Vector Group Ltd. | $ | 24,015 | $ | 17,607 | $ | 43,353 | $ | 38,828 | |||||||
Per basic common share: | |||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. | $ | 0.20 | $ | 0.14 | $ | 0.36 | $ | 0.32 | |||||||
Per diluted common share: | |||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. | $ | 0.20 | $ | 0.14 | $ | 0.35 | $ | 0.32 | |||||||
Dividends declared per share | $ | 0.40 | $ | 0.38 | $ | 0.80 | $ | 0.76 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 27,337 | $ | 19,444 | $ | 48,730 | $ | 40,925 | |||||||
Net unrealized losses on investment securities available for sale: | |||||||||||||||
Change in net unrealized (losses) gains | (820 | ) | (4,493 | ) | (5,454 | ) | 16,417 | ||||||||
Net unrealized (gains) losses reclassified into net income | (90 | ) | 190 | 4,156 | (12,839 | ) | |||||||||
Net unrealized (losses) gains on investment securities available for sale | (910 | ) | (4,303 | ) | (1,298 | ) | 3,578 | ||||||||
Net unrealized gains on long-term investments accounted for under the equity method: | |||||||||||||||
Change in net unrealized gains | — | 1,176 | — | 1,190 | |||||||||||
Net unrealized losses reclassified into net income | — | 1,624 | — | 1,624 | |||||||||||
Net unrealized gains on long-term investments accounted for under the equity method | — | 2,800 | — | 2,814 | |||||||||||
Net change in forward contracts | 9 | 16 | 18 | 32 | |||||||||||
Net change in pension-related amounts | |||||||||||||||
Net loss arising during the year | — | 1,607 | — | 1,607 | |||||||||||
Amortization of loss | 445 | 254 | 890 | 521 | |||||||||||
Net change in pension-related amounts | 445 | 1,861 | 890 | 2,128 | |||||||||||
Other comprehensive (loss) income | (456 | ) | 374 | (390 | ) | 8,552 | |||||||||
Income tax effect on: | |||||||||||||||
Change in net unrealized (losses) gains on investment securities | 337 | 1,857 | 2,245 | (6,603 | ) | ||||||||||
Net unrealized losses (gains) reclassified into net income on investment securities | 37 | (78 | ) | (1,708 | ) | 5,309 | |||||||||
Change in unrealized gains on long-term investments accounted for under the equity method | — | (478 | ) | — | (484 | ) | |||||||||
Net unrealized losses reclassified into net income on long-term investments accounted for under the equity method | — | (672 | ) | — | (672 | ) | |||||||||
Forward contracts | (4 | ) | (7 | ) | (7 | ) | (13 | ) | |||||||
Pension-related amounts | (183 | ) | (769 | ) | (366 | ) | (880 | ) | |||||||
Income tax benefit (provision) on other comprehensive income | 187 | (147 | ) | 164 | (3,343 | ) | |||||||||
Other comprehensive (loss) income, net of tax | (269 | ) | 227 | (226 | ) | 5,209 | |||||||||
Comprehensive income | 27,068 | 19,671 | 48,504 | 46,134 | |||||||||||
Comprehensive income attributed to non-controlling interest | (3,322 | ) | (1,837 | ) | (5,377 | ) | (2,097 | ) | |||||||
Comprehensive income attributed to Vector Group Ltd. | $ | 23,746 | $ | 17,834 | $ | 43,127 | $ | 44,037 |
Vector Group Ltd. Stockholders' Deficiency | ||||||||||||||||||||||||||
Additional | Accumulated Other | |||||||||||||||||||||||||
Common Stock | Paid-In | Accumulated | Comprehensive | Non-controlling | ||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Income | Interest | Total | ||||||||||||||||||||
Balance, January 1, 2016 | 123,792,329 | $ | 12,379 | $ | — | $ | (210,113 | ) | $ | (8,313 | ) | $ | 83,886 | $ | (122,161 | ) | ||||||||||
Net income | — | — | — | 43,353 | — | 5,377 | 48,730 | |||||||||||||||||||
Total other comprehensive loss | — | — | — | — | (226 | ) | — | (226 | ) | |||||||||||||||||
Total comprehensive income | — | — | — | — | — | — | 48,504 | |||||||||||||||||||
Distributions and dividends on common stock | — | — | (4,833 | ) | (94,610 | ) | — | — | (99,443 | ) | ||||||||||||||||
Restricted stock grant | 50,000 | 5 | (5 | ) | — | — | — | — | ||||||||||||||||||
Stock-based compensation | — | — | 4,838 | — | — | — | 4,838 | |||||||||||||||||||
Contributions from non-controlling interest | — | — | — | — | — | 248 | 248 | |||||||||||||||||||
Distributions to non-controlling interest | — | — | — | — | — | (7,422 | ) | (7,422 | ) | |||||||||||||||||
Balance as of June 30, 2016 | 123,842,329 | $ | 12,384 | $ | — | $ | (261,370 | ) | $ | (8,539 | ) | $ | 82,089 | $ | (175,436 | ) |
Six Months Ended | Six Months Ended | ||||||
June 30, 2016 | June 30, 2015 | ||||||
Net cash provided by operating activities | $ | 78,825 | $ | 83,885 | |||
Cash flows from investing activities: | |||||||
Sale of investment securities | 67,033 | 118,261 | |||||
Maturities of investment securities | 343 | 1,737 | |||||
Purchase of investment securities | (56,691 | ) | (113,595 | ) | |||
Proceeds from sale or liquidation of long-term investments | 1,000 | 1,254 | |||||
Purchase of long-term investments | (50 | ) | (5,000 | ) | |||
Investments in real estate ventures | (11,806 | ) | (34,857 | ) | |||
Distributions from investments in real estate ventures | 17,983 | — | |||||
Increase in cash surrender value of life insurance policies | (393 | ) | (1,118 | ) | |||
Decrease (increase) in restricted assets | 2,674 | (7,934 | ) | ||||
Issuance of notes receivable | — | (4,410 | ) | ||||
Proceeds from sale of fixed assets | 5 | 3 | |||||
Capital expenditures | (7,615 | ) | (5,379 | ) | |||
Pay downs of investment securities | 4,926 | 3,530 | |||||
Proceeds from sale of preferred securities | — | 1,000 | |||||
Investments in real estate, net | (81 | ) | (12,502 | ) | |||
Net cash provided by (used in) investing activities | 17,328 | (59,010 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of debt | 243,282 | 22 | |||||
Deferred financing costs | (6,600 | ) | (625 | ) | |||
Repayments of debt | (2,917 | ) | (3,374 | ) | |||
Borrowings under revolver | 89,695 | 126,727 | |||||
Repayments on revolver | (80,223 | ) | (144,492 | ) | |||
Dividends and distributions on common stock | (97,846 | ) | (92,778 | ) | |||
Contributions from non-controlling interest | 248 | — | |||||
Distributions to non-controlling interest | (7,422 | ) | — | ||||
Proceeds from exercise of Vector options | — | 1,219 | |||||
Tax benefit of options exercised | — | 384 | |||||
Net cash provided by (used in) financing activities | 138,217 | (112,917 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 234,370 | (88,042 | ) | ||||
Cash and cash equivalents, beginning of period | 240,368 | 326,365 | |||||
Cash and cash equivalents, end of period | $ | 474,738 | $ | 238,323 |
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
(a) | Basis of Presentation: |
December 31, 2015 | ||||||||||||
As Previously Reported | ASU Adoption | As Revised | ||||||||||
Other assets | $ | 51,261 | $ | (30,141 | ) | $ | 21,120 | |||||
Total assets | $ | 1,310,756 | $ | (30,141 | ) | $ | 1,280,615 | |||||
Notes payable, long-term debt and other obligations, less current portion | $ | 886,249 | $ | (30,141 | ) | $ | 856,108 | |||||
Total liabilities | 1,432,917 | (30,141 | ) | 1,402,776 | ||||||||
Total stockholders' deficiency | (122,161 | ) | — | (122,161 | ) | |||||||
Total liabilities and stockholders' deficiency | $ | 1,310,756 | $ | (30,141 | ) | $ | 1,280,615 | |||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2015 | June 30, 2015 | ||||||||||||||||||||||
As Previously Reported | Revision | As Revised | As Previously Reported | Revision | As Revised | ||||||||||||||||||
Operating, selling, administrative and general expenses | $ | 79,679 | $ | 237 | $ | 79,916 | $ | 153,623 | $ | 474 | $ | 154,097 | |||||||||||
Operating income | 56,040 | (237 | ) | 55,803 | 99,995 | (474 | ) | 99,521 | |||||||||||||||
Equity in losses from investments | (1,657 | ) | (506 | ) | (2,163 | ) | (1,694 | ) | 143 | (1,551 | ) | ||||||||||||
Other, net | 1,525 | 296 | 1,821 | 3,421 | 337 | 3,758 | |||||||||||||||||
Income before provision for income taxes | 31,069 | (447 | ) | 30,622 | 64,964 | 6 | 64,970 | ||||||||||||||||
Income tax expense | 11,364 | (186 | ) | 11,178 | 24,043 | 2 | 24,045 | ||||||||||||||||
Net income | 19,705 | (261 | ) | 19,444 | 40,921 | 4 | 40,925 | ||||||||||||||||
Net income attributed to Vector Group Ltd. | 17,868 | (261 | ) | 17,607 | 38,824 | 4 | 38,828 | ||||||||||||||||
Other comprehensive (loss) income, net of tax | (2,781 | ) | 3,008 | 227 | (782 | ) | 5,991 | 5,209 | |||||||||||||||
Comprehensive income | 16,924 | 2,747 | 19,671 | 40,139 | 5,995 | 46,134 | |||||||||||||||||
Comprehensive income attributed to Vector Group Ltd. | $ | 15,087 | $ | 2,747 | $ | 17,834 | $ | 38,042 | $ | 5,995 | $ | 44,037 | |||||||||||
(b) | Distributions and Dividends on Common Stock: |
(c) | Revenue Recognition: |
(d) | Earnings Per Share (“EPS”): |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 24,015 | $ | 17,607 | $ | 43,353 | $ | 38,828 | |||||||
Income attributed to participating securities | (784 | ) | (521 | ) | (1,417 | ) | (1,151 | ) | |||||||
Net income available to common shares attributed to Vector Group Ltd. | $ | 23,231 | $ | 17,086 | $ | 41,936 | $ | 37,677 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Weighted-average shares for basic EPS | 118,065,857 | 117,954,708 | 118,062,358 | 117,475,380 | |||||||
Plus incremental shares related to stock options and non-vested restricted stock | 236,348 | 209,067 | 215,386 | 205,262 | |||||||
Weighted-average shares for diluted EPS | 118,302,205 | 118,163,775 | 118,277,744 | 117,680,642 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Weighted-average number of shares issuable upon conversion of debt | 24,895,477 | 24,895,477 | 24,895,477 | 25,334,835 | |||||||||||
Weighted-average conversion price | $ | 19.63 | $ | 19.63 | $ | 19.63 | $ | 19.48 |
(e) | Fair Value of Derivatives Embedded within Convertible Debt: |
(f) | Investment in Real Estate Ventures: |
(g) | Other Income, Net: |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest and dividend income | $ | 1,452 | $ | 1,795 | $ | 2,776 | $ | 3,535 | |||||||
Gain on long-term investment | — | 24 | — | 224 | |||||||||||
Impairment of long-term investments | (921 | ) | — | (1,203 | ) | — | |||||||||
Other income (expense) | 50 | 2 | 55 | (1 | ) | ||||||||||
Other income, net | $ | 581 | $ | 1,821 | $ | 1,628 | $ | 3,758 |
(h) | Other Current Liabilities: |
June 30, 2016 | December 31, 2015 | ||||||
Accounts payable | $ | 10,265 | $ | 19,639 | |||
Accrued promotional expenses | 22,269 | 24,816 | |||||
Accrued excise and payroll taxes payable, net | 16,784 | 26,556 | |||||
Accrued interest | 35,028 | 28,147 | |||||
Commissions payable | 9,885 | 11,008 | |||||
Accrued salary and benefits | 18,179 | 22,774 | |||||
Other current liabilities | 27,978 | 21,277 | |||||
Total other current liabilities | $ | 140,388 | $ | 154,217 |
(i) | Goodwill and Other Intangible Assets: |
June 30, 2016 | December 31, 2015 | |||||||
Goodwill | $ | 70,791 | $ | 70,791 | ||||
Indefinite life intangibles: | ||||||||
Intangible asset associated with benefit under the MSA | 107,511 | 107,511 | ||||||
Trademark - Douglas Elliman | 80,000 | 80,000 | ||||||
Intangibles with a finite life, net | 4,564 | 5,657 | ||||||
Total goodwill and other intangible assets, net | $ | 262,866 | $ | 263,959 |
(j) | Commitments: |
(k) | New Accounting Pronouncements: |
2. | INVENTORIES |
June 30, 2016 | December 31, 2015 | ||||||
Leaf tobacco | $ | 49,537 | $ | 49,856 | |||
Other raw materials | 3,586 | 3,578 | |||||
Work-in-process | 606 | 789 | |||||
Finished goods | 67,219 | 61,493 | |||||
E-Cigarettes | 67 | 80 | |||||
Inventories at current cost | 121,015 | 115,796 | |||||
LIFO adjustments | (28,280 | ) | (29,280 | ) | |||
$ | 92,735 | $ | 86,516 |
3. | INVESTMENT SECURITIES AVAILABLE FOR SALE |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Marketable equity securities | $ | 38,172 | $ | 17,343 | $ | (206 | ) | $ | 55,309 | ||||||
Mutual funds invested in fixed income securities | 20,307 | 211 | — | 20,518 | |||||||||||
Marketable debt securities | 83,865 | 1,162 | — | 85,027 | |||||||||||
Total investment securities available for sale | $ | 142,344 | $ | 18,716 | $ | (206 | ) | $ | 160,854 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Marketable equity securities | $ | 47,502 | $ | 19,833 | $ | (62 | ) | $ | 67,273 | ||||||
Mutual funds invested in fixed income securities | 20,126 | — | (15 | ) | 20,111 | ||||||||||
Marketable debt securities | 94,540 | 52 | — | 94,592 | |||||||||||
Total investment securities available for sale | $ | 162,168 | $ | 19,885 | $ | (77 | ) | $ | 181,976 |
Investment Type: | Market Value | Under 1 Year | 1 Year up to 5 Years | More than 5 Years | |||||||||||
U.S. Government securities | $ | 27,456 | $ | — | $ | 27,456 | $ | — | |||||||
Corporate securities | 35,660 | 2,271 | 33,389 | — | |||||||||||
U.S. mortgage-backed securities | 7,343 | — | 49 | 7,294 | |||||||||||
Commercial mortgage-backed securities | 3,675 | — | — | 3,675 | |||||||||||
U.S. asset-backed securities | 2,115 | — | 2,115 | — | |||||||||||
Commercial paper | 7,985 | 7,985 | — | — | |||||||||||
Index-linked U.S. bonds | 793 | — | 793 | — | |||||||||||
Total marketable debt securities by maturity dates | $ | 85,027 | $ | 10,256 | $ | 63,802 | $ | 10,969 |
In loss position for | |||||||||||||||||||||||
Less than 12 months | 12 months or more | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Total Fair Value | Total Unrealized Losses | ||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||
Marketable equity securities | $ | — | $ | — | $ | 5,794 | $ | (206 | ) | $ | 5,794 | $ | (206 | ) | |||||||||
$ | — | $ | — | $ | 5,794 | $ | (206 | ) | $ | 5,794 | $ | (206 | ) | ||||||||||
December 31, 2015 | |||||||||||||||||||||||
Marketable equity securities | $ | 5,938 | $ | (62 | ) | $ | — | $ | — | $ | 5,938 | $ | (62 | ) | |||||||||
Mutual funds invested in fixed income securities | 10,053 | (15 | ) | — | — | 10,053 | (15 | ) | |||||||||||||||
$ | 15,991 | $ | (77 | ) | $ | — | $ | — | $ | 15,991 | $ | (77 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Gross realized gains on sales | $ | 206 | $ | 520 | $ | 955 | $ | 14,084 | |||||||
Gross realized losses on sales | (67 | ) | (710 | ) | (249 | ) | (1,245 | ) | |||||||
Gains (losses) on sale of investment securities available for sale | $ | 139 | $ | (190 | ) | $ | 706 | $ | 12,839 | ||||||
Gross realized losses on other-than-temporary impairments | $ | (49 | ) | $ | — | $ | (4,862 | ) | $ | — | |||||
4. | LONG-TERM INVESTMENTS |
June 30, 2016 | December 31, 2015 | ||||||
Investments accounted at cost | $ | 39,028 | $ | 41,231 | |||
Investments accounted for under the equity method | 20,341 | 21,495 | |||||
$ | 59,369 | $ | 62,726 |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||
Value | Value | Value | Value | ||||||||||||
Investments partnerships | $ | 38,527 | $ | 41,522 | $ | 40,730 | $ | 44,217 | |||||||
Real estate partnership | 501 | 504 | 501 | 552 | |||||||||||
$ | 39,028 | $ | 42,026 | $ | 41,231 | $ | 44,769 |
June 30, 2016 | December 31, 2015 | ||||||
Indian Creek Investors LP | $ | 4,929 | $ | 4,989 | |||
Boyar Value Fund | 7,312 | 7,302 | |||||
Ladenburg Thalmann Financial Services Inc. | 8,100 | 9,204 | |||||
Castle Brands, Inc. | — | — | |||||
$ | 20,341 | $ | 21,495 |
5. | NEW VALLEY LLC |
June 30, 2016 | December 31, 2015 | ||||||
10 Madison Square Park (1107 Broadway) | $ | 9,188 | $ | 11,391 | |||
The Marquand (11 East 68th Street) | 9,333 | 13,900 | |||||
11 Beach Street | 13,702 | 13,209 | |||||
20 Times Square (701 Seventh Avenue) | 16,487 | 14,985 | |||||
111 Murray Street | 25,308 | 25,567 | |||||
160 Leroy Street | 4,511 | 3,952 | |||||
215 Chrystie Street | 5,729 | 5,592 | |||||
The Dutch (25-19 43rd Avenue) | 1,129 | 1,077 | |||||
Queens Plaza (23-10 Queens Plaza South) | 16,834 | 16,177 | |||||
87 Park (8701 Collins Avenue) | 8,846 | 8,658 | |||||
125 Greenwich Street | 9,780 | 9,750 | |||||
West Hollywood Edition (9040 Sunset Boulevard) | 7,050 | 10,510 | |||||
76 Eleventh Avenue | 18,867 | 17,967 | |||||
Monad Terrace | 7,774 | 6,608 | |||||
Takanasee | 4,916 | 4,680 | |||||
Condominium and Mixed Use Development | 159,454 | 164,023 | |||||
Maryland Portfolio | — | — | |||||
ST Portfolio | 9,193 | 15,754 | |||||
Apartment Buildings | 9,193 | 15,754 | |||||
Park Lane Hotel | 21,138 | 19,697 | |||||
Hotel Taiwana | 7,786 | 7,069 | |||||
Coral Beach and Tennis Club | 3,162 | 3,159 | |||||
Hotels | 32,086 | 29,925 | |||||
The Plaza at Harmon Meadow | 3,682 | 5,449 | |||||
Commercial | 3,682 | 5,449 | |||||
Other | 1,724 | 2,017 | |||||
Investments in real estate ventures | $ | 206,139 | $ | 217,168 |
June 30, 2016 | December 31, 2015 | ||||||
Escena, net | $ | 10,644 | $ | 10,716 | |||
Sagaponack | 12,684 | 12,602 | |||||
Investments in real estate, net | $ | 23,328 | $ | 23,318 |
June 30, 2016 | December 31, 2015 | ||||||
Land and land improvements | $ | 8,907 | $ | 8,907 | |||
Building and building improvements | 1,874 | 1,875 | |||||
Other | 2,001 | 1,923 | |||||
12,782 | 12,705 | ||||||
Less accumulated depreciation | (2,138 | ) | (1,989 | ) | |||
$ | 10,644 | $ | 10,716 |
6. | NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS |
June 30, 2016 | December 31, 2015 | ||||||
Vector: | |||||||
7.75% Senior Secured Notes due 2021, including premium of $15,391 and $8,014 | $ | 850,391 | $ | 608,014 | |||
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $121,788 and $132,119* | 108,212 | 97,881 | |||||
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $79,010 and $86,136* | 179,740 | 172,614 | |||||
Liggett: | |||||||
Revolving credit facility | 12,808 | 3,213 | |||||
Term loan under credit facility | 3,147 | 3,269 | |||||
Equipment loans | 6,866 | 9,716 | |||||
Other | 354 | 461 | |||||
Notes payable, long-term debt and other obligations | 1,161,518 | 895,168 | |||||
Less: | |||||||
Debt issuance costs | (34,172 | ) | (30,141 | ) | |||
Total notes payable, long-term debt and other obligations | 1,127,346 | 865,027 | |||||
Less: | |||||||
Current maturities | (16,615 | ) | (8,919 | ) | |||
Amount due after one year | $ | 1,110,731 | $ | 856,108 |
June 30, 2016 | December 31, 2015 | ||||||||||||
Conversion Price | Shares per $1,000 | Conversion Price | Shares per $1,000 | ||||||||||
7.5% Variable Interest Senior Convertible Notes due 2019 | $ | 15.98 | 62.5743 | $ | 15.98 | 62.5743 | |||||||
5.5% Variable Interest Senior Convertible Debentures due 2020 | $ | 24.64 | 40.5891 | $ | 24.64 | 40.5891 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Amortization of debt discount, net | $ | 8,653 | $ | 6,213 | $ | 16,609 | $ | 11,840 | |||||||
Amortization of debt issuance costs | 1,401 | 1,022 | 2,569 | 1,988 | |||||||||||
$ | 10,054 | $ | 7,235 | $ | 19,178 | $ | 13,828 |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||
Value | Value | Value | Value | ||||||||||||
Notes payable and long-term debt | $ | 1,161,518 | (1) | $ | 1,513,012 | $ | 895,168 | (1) | $ | 1,297,875 | |||||
7. | CONTINGENCIES |
State | Number of Cases | |
Maryland | 13 | |
Florida | 11 | |
New York | 7 | |
Louisiana | 3 | |
West Virginia | 2 | |
Missouri | 1 | |
Ohio | 1 |
Date | Case Name | County | Liggett Compensatory Damages (as adjusted) (1) | Liggett Punitive Damages | Status (2) | |||||
June 2002 | Lukacs v. R.J. Reynolds | Miami-Dade | $12,418 | $— | Liggett satisfied the judgment and the case is concluded. | |||||
August 2009 | Campbell v. R.J. Reynolds | Escambia | 156 | — | Liggett satisfied the judgment and the case is concluded. | |||||
March 2010 | Douglas v. R.J. Reynolds | Hillsborough | 1,350 | — | Liggett satisfied the judgment and the case is concluded. | |||||
April 2010 | Clay v. R.J. Reynolds | Escambia | 349 | 1,000 | Liggett satisfied the judgment and the case is concluded. | |||||
April 2010 | Putney v. R.J. Reynolds | Broward | 3,008 | — | On June 12, 2013, the Fourth District Court of Appeal reversed and remanded the case for further proceedings regarding the amount of the award. Both sides sought discretionary review from the Florida Supreme Court. In February 2016, the Florida Supreme Court reinstated the jury's verdict. The defendants moved for clarification of that order, which was granted in March 2016. The court clarified that it reversed the district court's decision regarding the statute of repose only, leaving the remaining portions of the decision intact. The case will be remanded to the trial court for proceedings consistent with those portions of the district court's decision that were not reversed. | |||||
April 2011 | Tullo v. R.J. Reynolds | Palm Beach | 225 | — | Liggett satisfied the judgment and other than an issue with respect to the calculation of interest on the judgment and the amount of costs owed by Liggett, the case is concluded. | |||||
January 2012 | Ward v. R.J. Reynolds | Escambia | 1 | — | Liggett satisfied the merits judgment. Subsequently, the trial court entered a joint and several final judgment on attorneys' fees and costs for $981 and defendants appealed that judgment. | |||||
May 2012 | Calloway v. R.J. Reynolds | Broward | 1,530 | — | A joint and several judgment for $16,100 was entered against R.J. Reynolds, Philip Morris, Lorillard and Liggett. On January 6, 2016, the Fourth District Court of Appeal reversed in part, including the $7,600 punitive damages award against Liggett, and remanded the case to the trial court for a new trial on certain issues. Both sides have moved for rehearing. | |||||
December 2012 | Buchanan v. R.J. Reynolds | Leon | 2,750 | — | Liggett satisfied the judgment and the case is concluded. | |||||
May 2013 | Cohen v. R.J. Reynolds | Palm Beach | — | — | In May 2013, the jury awarded compensatory damages in the amount of $2,055 and apportioned 10% of the fault to Liggett ($205). Defendants' motion seeking a new trial was granted by the trial court. Plaintiff appealed and defendants cross-appealed. Oral argument occurred on June 7, 2016. A decision is pending. | |||||
August 2013 | Rizzuto v. R.J. Reynolds | Hernando | 3,479 | — | Liggett settled its portion of the judgment for $1,500 and the case is concluded as to Liggett. | |||||
August 2014 | Irimi v. R.J. Reynolds | Broward | — | — | In August 2014, the jury awarded compensatory damages in the amount of $3,123 and apportioned 1% of the fault to Liggett ($31). In January 2015, the trial court granted defendants' motion for a new trial. Plaintiff appealed. | |||||
October 2014 | Lambert v. R.J. Reynolds | Pinellas | 3,600 | 9,500 | Liggett satisfied the judgment and the case is concluded. | |||||
November 2014 | Boatright v. R.J. Reynolds | Polk | — | 300 | In November 2014, the jury awarded compensatory damages in the amount of $15,000 with 15% fault apportioned to plaintiff and 85% to Philip Morris. The jury further assessed punitive damages against Philip Morris for $19,700 and Liggett for $300. Post trial motions were denied. A joint and several judgment was entered in the amount of $12,750 on the compensatory damages. Judgment was further entered against Liggett for $300 in punitive damages. Defendants appealed and plaintiff cross-appealed. | |||||
June 2015 | Caprio v. R.J. Reynolds | Broward | — | — | In February 2015, the jury answered certain questions on the verdict form, but were deadlocked as to others. The jury returned a verdict of $559 in economic damages. The court entered a partial judgment and ordered a new trial on the remaining issues, including comparative fault and punitive damages. Defendants appealed. | |||||
Total Damages Awarded: | 28,866 | 10,800 | ||||||||
Amounts accrued, paid or compromised: | (24,328) | (10,500) | ||||||||
Damages remaining on Appeal: | $4,538 | $300 | ||||||||
(1) Compensatory damages are adjusted to reflect the jury's allocation of comparative fault and only include Liggett's jury allocated share, regardless of whether a judgment was joint and several. The amounts listed above do not include attorneys' fees or statutory interest. | ||||||||||
(2) See Exhibit 99.1 for a more complete description of the cases currently on appeal. |
• | all claims of the Settling States and their respective political subdivisions and other recipients of state health care funds, relating to: (i) past conduct arising out of the use, sale, distribution, manufacture, development, advertising and marketing of tobacco products; (ii) the health effects of, the exposure to, or research, statements or warnings about, tobacco products; and |
• | all monetary claims of the Settling States and their respective subdivisions and other recipients of state health care funds relating to future conduct arising out of the use of, or exposure to, tobacco products that have been manufactured in the ordinary course of business. |
Current Liabilities | Non-Current Liabilities | ||||||||||||||||||||||
Payments due under Master Settlement Agreement | Litigation Accruals | Total | Payments due under Master Settlement Agreement | Litigation Accruals | Total | ||||||||||||||||||
Balance at January 1, 2016 | $ | 29,241 | $ | 22,904 | $ | 52,145 | $ | 20,094 | $ | 24,718 | $ | 44,812 | |||||||||||
Expenses | 42,637 | 2,583 | 45,220 | — | — | — | |||||||||||||||||
Change in MSA obligations capitalized as inventory | 69 | — | 69 | — | — | — | |||||||||||||||||
Payments | (12,847 | ) | (25,545 | ) | (38,392 | ) | — | — | — | ||||||||||||||
Reclassification to/(from) non-current liabilities | (2,163 | ) | 3,252 | 1,089 | 2,163 | (3,252 | ) | (1,089 | ) | ||||||||||||||
Interest on withholding | 35 | 320 | 355 | — | 1,153 | 1,153 | |||||||||||||||||
Balance as of June 30, 2016 | $ | 56,972 | $ | 3,514 | $ | 60,486 | $ | 22,257 | $ | 22,619 | $ | 44,876 |
Current Liabilities | Non-Current Liabilities | ||||||||||||||||||||||
Payments due under Master Settlement Agreement | Litigation Accruals | Total | Payments due under Master Settlement Agreement | Litigation Accruals | Total | ||||||||||||||||||
Balance at January 1, 2015 | $ | 26,322 | $ | 3,149 | $ | 29,471 | $ | 25,809 | $ | 25,700 | $ | 51,509 | |||||||||||
Expenses | 53,435 | 2,490 | 55,925 | — | (195 | ) | (195 | ) | |||||||||||||||
Change in MSA obligations capitalized as inventory | 1,011 | — | 1,011 | — | — | — | |||||||||||||||||
Payments | (18,142 | ) | (5,645 | ) | (23,787 | ) | — | — | — | ||||||||||||||
Reclassification from non-current liabilities | — | 3,305 | 3,305 | — | (3,305 | ) | (3,305 | ) | |||||||||||||||
Interest on withholding | — | 178 | 178 | — | 1,244 | 1,244 | |||||||||||||||||
Balance as of June 30, 2015 | $ | 62,626 | $ | 3,477 | $ | 66,103 | $ | 25,809 | $ | 23,444 | $ | 49,253 |
8. | EMPLOYEE BENEFIT PLANS |
Pension Benefits | Pension Benefits | Other Postretirement Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||
Service cost — benefits earned during the period | $ | 137 | $ | 133 | $ | 274 | $ | 265 | $ | 1 | $ | 2 | $ | 2 | $ | 4 | |||||||||||||||
Interest cost on projected benefit obligation | 1,355 | 1,280 | 2,710 | 2,598 | 97 | 93 | 194 | 185 | |||||||||||||||||||||||
Expected return on assets | (1,519 | ) | (1,888 | ) | (3,038 | ) | (3,813 | ) | — | — | — | — | |||||||||||||||||||
Settlement loss | — | 1,607 | — | 1,607 | — | — | — | — | |||||||||||||||||||||||
Amortization of net loss (gain) | 464 | 278 | 928 | 569 | (19 | ) | (24 | ) | (38 | ) | (48 | ) | |||||||||||||||||||
Net expense | $ | 437 | $ | 1,410 | $ | 874 | $ | 1,226 | $ | 79 | $ | 71 | $ | 158 | $ | 141 |
9. | RESTRUCTURING |
Employee Severance and Benefits | Contract Termination/Exit Costs | Other | Total | |||||||||||||
Accrual balance as of January 1, 2016 | $ | 422 | $ | 48 | $ | 20 | $ | 490 | ||||||||
Restructuring charges | — | 41 | — | 41 | ||||||||||||
Utilized | (315 | ) | (89 | ) | (20 | ) | (424 | ) | ||||||||
Accrual balance as of June 30, 2016 | $ | 107 | $ | — | $ | — | $ | 107 | ||||||||
10. | INCOME TAXES |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Income before provision for income taxes | $ | 46,340 | $ | 30,622 | $ | 82,096 | $ | 64,970 | |||||||
Income tax expense using estimated annual effective income tax rate | 18,793 | 11,347 | 33,317 | 24,145 | |||||||||||
Changes in effective tax rates | 210 | (78 | ) | — | — | ||||||||||
Impact of discrete items, net | — | (91 | ) | 49 | (100 | ) | |||||||||
Income tax expense | $ | 19,003 | $ | 11,178 | $ | 33,366 | $ | 24,045 |
11. | INVESTMENTS AND FAIR VALUE MEASUREMENTS |
Fair Value Measurements as of June 30, 2016 | ||||||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Gains (Losses) | |||||||||||||||
Assets: | ||||||||||||||||||||
Money market funds | $ | 336,845 | $ | 336,845 | $ | — | $ | — | ||||||||||||
Commercial paper | 42,044 | — | 42,044 | — | ||||||||||||||||
Certificates of deposit | 2,976 | — | 2,976 | — | ||||||||||||||||
Bonds | 10,767 | 10,767 | — | — | ||||||||||||||||
Investment securities available for sale | ||||||||||||||||||||
Equity securities | 55,309 | 55,309 | — | — | ||||||||||||||||
Mutual funds invested in fixed income securities | 20,518 | 20,518 | — | — | ||||||||||||||||
Fixed income securities | ||||||||||||||||||||
U.S. government securities | 27,456 | — | 27,456 | — | ||||||||||||||||
Corporate securities | 35,660 | — | 35,660 | — | ||||||||||||||||
U.S. government and federal agency | 7,343 | — | 7,343 | — | ||||||||||||||||
Commercial mortgage-backed securities | 3,675 | — | 3,675 | — | ||||||||||||||||
U.S. asset-backed securities | 2,115 | — | 2,115 | — | ||||||||||||||||
Commercial paper | 7,985 | — | 7,985 | — | ||||||||||||||||
Index-linked U.S. bonds | 793 | — | 793 | — | ||||||||||||||||
Total fixed income securities | 85,027 | — | 85,027 | — | ||||||||||||||||
Total investment securities available for sale | 160,854 | 75,827 | 85,027 | — | ||||||||||||||||
Total | $ | 553,486 | $ | 423,439 | $ | 130,047 | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Fair value of derivatives embedded within convertible debt | $ | 126,932 | $ | — | $ | — | $ | 126,932 | ||||||||||||
Nonrecurring fair value measurements | ||||||||||||||||||||
Long-term investments (1) | $ | 6,396 | $ | 6,396 | $ | (1,203 | ) | |||||||||||||
(1) | Long-term investments with a carrying amount of $7,599 were written down to their fair value of $6,396, resulting in an impairment charge of $1,203, which was included in earnings. |
Fair Value Measurements as of December 31, 2015 | ||||||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Gains (Losses) | |||||||||||||||
Assets: | ||||||||||||||||||||
Money market funds | $ | 93,915 | $ | 93,915 | $ | — | $ | — | ||||||||||||
Certificates of deposit | 3,469 | — | 3,469 | — | ||||||||||||||||
Bonds | 12,767 | 12,767 | — | — | ||||||||||||||||
Investment securities available for sale | ||||||||||||||||||||
Equity securities | 67,273 | 67,273 | — | — | ||||||||||||||||
Mutual funds invested in fixed income securities | 20,111 | 20,111 | — | — | ||||||||||||||||
Fixed income securities | ||||||||||||||||||||
U.S. government securities | 28,132 | — | 28,132 | — | ||||||||||||||||
Corporate securities | 41,561 | — | 41,561 | — | ||||||||||||||||
U.S. government and federal agency | 5,790 | — | 5,790 | — | ||||||||||||||||
Commercial mortgage-backed securities | 8,728 | — | 8,728 | — | ||||||||||||||||
U.S. asset-backed securities | 8,276 | — | 8,276 | — | ||||||||||||||||
Index-linked U.S. bonds | 2,105 | — | 2,105 | — | ||||||||||||||||
Total fixed income securities | 94,592 | — | 94,592 | — | ||||||||||||||||
Total investment securities available for sale | 181,976 | 87,384 | 94,592 | — | ||||||||||||||||
Total | $ | 292,127 | $ | 194,066 | $ | 98,061 | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Fair value of derivatives embedded within convertible debt | $ | 144,042 | $ | — | $ | — | $ | 144,042 | ||||||||||||
Nonrecurring fair value measurements | ||||||||||||||||||||
Long-term investments (1) | $ | 11,189 | $ | 11,189 | $ | (811 | ) | |||||||||||||
Investments in real estate, net (2) | 3,780 | 3,780 | (230 | ) | ||||||||||||||||
$ | 14,969 | $ | 14,969 | $ | (1,041 | ) | ||||||||||||||
(1) | Long-term investments with a carrying amount of $12,000 were written down to their fair value of $11,189, resulting in an impairment charge of $811, which was included in earnings. |
(2) | Investment in real estate, net with a carrying value of $4,010 was written down to its fair value of $3,780, resulting in an impairment charge of $230, which was included in earnings. |
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
Fair Value at | ||||||||||||
June 30, 2016 | Valuation Technique | Unobservable Input | Range (Actual) | |||||||||
Fair value of derivatives embedded within convertible debt | $ | 126,932 | Discounted cash flow | Assumed annual stock dividend | 5 | % | ||||||
Assumed annual cash dividend | $ | 1.60 | ||||||||||
Stock price | $ | 22.42 | ||||||||||
Convertible trading price (as a percentage of par value) | 110.88 | % | ||||||||||
Volatility | 19.33 | % | ||||||||||
Risk-free rate | Term structure of US Treasury Securities | |||||||||||
Implied credit spread | 6.0% - 7.0% (6.5%) |
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
Fair Value at | ||||||||||||
December 31, 2015 | Valuation Technique | Unobservable Input | Range (Actual) | |||||||||
Fair value of derivatives embedded within convertible debt | $ | 144,042 | Discounted cash flow | Assumed annual stock dividend | 5 | % | ||||||
Assumed annual cash dividend | $ | 1.60 | ||||||||||
Stock price | $ | 23.59 | ||||||||||
Convertible trading price (as a percentage of par value) | 114.31 | % | ||||||||||
Volatility | 18.30 | % | ||||||||||
Risk-free rate | Term structure of US Treasury Securities | |||||||||||
Implied credit spread | 5.0% - 5.5% (5.25%) |
12. | SEGMENT INFORMATION |
Real | Corporate | ||||||||||||||||||
Tobacco | E-Cigarettes | Estate | and Other | Total | |||||||||||||||
Three months ended June 30, 2016 | |||||||||||||||||||
Revenues | $ | 255,498 | $ | 10 | $ | 182,765 | $ | — | $ | 438,273 | |||||||||
Operating income (loss) | 66,016 | (91 | ) | 11,706 | (6,911 | ) | 70,720 | ||||||||||||
Equity in earnings from real estate ventures | — | — | 2,813 | — | 2,813 | ||||||||||||||
Depreciation and amortization | 2,499 | — | 2,943 | 428 | 5,870 | ||||||||||||||
Three months ended June 30, 2015 | |||||||||||||||||||
Revenues | $ | 254,890 | $ | 261 | $ | 161,022 | $ | — | $ | 416,173 | |||||||||
Operating income (loss) | 56,215 | (1) | (2,400 | ) | 6,892 | (4,904 | ) | 55,803 | |||||||||||
Equity in earnings from real estate ventures | — | — | 1,856 | — | 1,856 | ||||||||||||||
Depreciation and amortization | 2,931 | — | 3,076 | 435 | 6,442 | ||||||||||||||
Six months ended June 30, 2016 | |||||||||||||||||||
Revenues | $ | 476,513 | $ | 48 | $ | 342,512 | $ | — | $ | 819,073 | |||||||||
Operating income (loss) | 127,499 | (2) | (284 | ) | 19,380 | (13,716 | ) | 132,879 | |||||||||||
Equity in earnings from real estate ventures | — | — | 2,306 | — | 2,306 | ||||||||||||||
Depreciation and amortization | 4,939 | — | 5,225 | 870 | 11,034 | ||||||||||||||
Capital expenditures | 3,716 | — | 3,873 | 26 | 7,615 | ||||||||||||||
Six months ended June 30, 2015 | |||||||||||||||||||
Revenues | $ | 482,975 | $ | 680 | $ | 293,278 | $ | — | $ | 776,933 | |||||||||
Operating income (loss) | 105,885 | (3) | (5,564 | ) | 9,043 | (9,843 | ) | 99,521 | |||||||||||
Equity in earnings from real estate ventures | — | — | 2,194 | — | 2,194 | ||||||||||||||
Depreciation and amortization | 5,867 | — | 5,984 | 872 | 12,723 | ||||||||||||||
Capital expenditures | 2,350 | — | 3,029 | — | 5,379 | ||||||||||||||
(1) | Operating income includes $1,250 of litigation settlement expense and $1,607 of pension settlement expense. |
(2) | Operating income includes $2,350 of litigation settlement expense, and $41 of restructuring expense. |
(3) | Operating income includes $2,093 of litigation settlement expense and $1,607 of pension settlement expense. |
June 30, 2016 | |||||||||||||||||||
Subsidiary | Consolidated | ||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | |||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | |||||||||||||||
ASSETS: | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 335,034 | $ | 32,246 | $ | 107,458 | $ | — | $ | 474,738 | |||||||||
Investment securities available for sale | 120,283 | 40,571 | — | — | 160,854 | ||||||||||||||
Accounts receivable - trade, net | — | 15,015 | 10,061 | — | 25,076 | ||||||||||||||
Intercompany receivables | 16,435 | — | — | (16,435 | ) | — | |||||||||||||
Inventories | — | 92,735 | — | — | 92,735 | ||||||||||||||
Income taxes receivable, net | 12,342 | — | — | (12,124 | ) | 218 | |||||||||||||
Restricted assets | — | 8,523 | 914 | — | 9,437 | ||||||||||||||
Other current assets | 618 | 3,794 | 35,751 | — | 40,163 | ||||||||||||||
Total current assets | 484,712 | 192,884 | 154,184 | (28,559 | ) | 803,221 | |||||||||||||
Property, plant and equipment, net | 1,452 | 51,122 | 19,330 | — | 71,904 | ||||||||||||||
Investments in real estate, net | — | — | 23,328 | — | 23,328 | ||||||||||||||
Long-term investments | 58,414 | 454 | 501 | — | 59,369 | ||||||||||||||
Investments in real estate ventures | — | — | 206,139 | — | 206,139 | ||||||||||||||
Investments in consolidated subsidiaries | 517,365 | — | — | (517,365 | ) | — | |||||||||||||
Restricted assets | 1,720 | 7,666 | — | — | 9,386 | ||||||||||||||
Goodwill and other intangible assets, net | — | 107,511 | 155,355 | — | 262,866 | ||||||||||||||
Prepaid pension costs | — | 21,302 | — | — | 21,302 | ||||||||||||||
Other assets | 7,621 | 12,002 | 2,362 | — | 21,985 | ||||||||||||||
Total assets | $ | 1,071,284 | $ | 392,941 | $ | 561,199 | $ | (545,924 | ) | $ | 1,479,500 | ||||||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY: | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Current portion of notes payable and long-term debt | $ | — | $ | 16,523 | $ | 92 | $ | — | $ | 16,615 | |||||||||
Current portion of employee benefits | — | 914 | — | — | 914 | ||||||||||||||
Intercompany payables | — | 585 | 15,850 | (16,435 | ) | — | |||||||||||||
Income taxes payable, net | — | 11,501 | 623 | (12,124 | ) | — | |||||||||||||
Litigation accruals and current payments due under the Master Settlement Agreement | — | 60,486 | — | — | 60,486 | ||||||||||||||
Other current liabilities | 44,520 | 55,350 | 40,518 | — | 140,388 | ||||||||||||||
Total current liabilities | 44,520 | 145,359 | 57,083 | (28,559 | ) | 218,403 | |||||||||||||
Notes payable, long-term debt and other obligations, less current portion | 1,104,171 | 6,338 | 222 | — | 1,110,731 | ||||||||||||||
Fair value of derivatives embedded within convertible debt | 126,932 | — | — | — | 126,932 | ||||||||||||||
Non-current employee benefits | 40,075 | 15,233 | — | — | 55,308 | ||||||||||||||
Deferred income taxes, net | 7,826 | 35,138 | 44,950 | — | 87,914 | ||||||||||||||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 5,285 | 45,010 | 5,353 | — | 55,648 | ||||||||||||||
Total liabilities | 1,328,809 | 247,078 | 107,608 | (28,559 | ) | 1,654,936 | |||||||||||||
Commitments and contingencies | |||||||||||||||||||
Stockholders' (deficiency) equity attributed to Vector Group Ltd. | (257,525 | ) | 145,863 | 371,502 | (517,365 | ) | (257,525 | ) | |||||||||||
Non-controlling interest | — | — | 82,089 | — | 82,089 | ||||||||||||||
Total stockholders' (deficiency) equity | (257,525 | ) | 145,863 | 453,591 | (517,365 | ) | (175,436 | ) | |||||||||||
Total liabilities and stockholders' deficiency | $ | 1,071,284 | $ | 392,941 | $ | 561,199 | $ | (545,924 | ) | $ | 1,479,500 |
December 31, 2015 | |||||||||||||||||||
Subsidiary | Consolidated | ||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | |||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | |||||||||||||||
ASSETS: | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 111,470 | $ | 12,375 | $ | 116,523 | $ | — | $ | 240,368 | |||||||||
Investment securities available for sale | 131,810 | 50,166 | — | — | 181,976 | ||||||||||||||
Accounts receivable - trade, net | — | 15,913 | 7,976 | — | 23,889 | ||||||||||||||
Intercompany receivables | 11,293 | — | — | (11,293 | ) | — | |||||||||||||
Inventories | — | 86,516 | — | — | 86,516 | ||||||||||||||
Income taxes receivable, net | 8,213 | — | — | (5,372 | ) | 2,841 | |||||||||||||
Restricted assets | — | 7,781 | 1,414 | — | 9,195 | ||||||||||||||
Other current assets | 575 | 3,747 | 34,632 | — | 38,954 | ||||||||||||||
Total current assets | 263,361 | 176,498 | 160,545 | (16,665 | ) | 583,739 | |||||||||||||
Property, plant and equipment, net | 1,711 | 54,097 | 19,824 | — | 75,632 | ||||||||||||||
Investments in real estate, net | — | — | 23,318 | — | 23,318 | ||||||||||||||
Long-term investments | 61,747 | 478 | 501 | — | 62,726 | ||||||||||||||
Investments in real estate ventures | — | — | 217,168 | — | 217,168 | ||||||||||||||
Investments in consolidated subsidiaries | 532,501 | — | — | (532,501 | ) | — | |||||||||||||
Restricted assets | 1,713 | 10,590 | — | — | 12,303 | ||||||||||||||
Goodwill and other intangible assets, net | — | 107,511 | 156,448 | — | 263,959 | ||||||||||||||
Prepaid pension costs | — | 20,650 | — | — | 20,650 | ||||||||||||||
Other assets | 7,582 | 11,769 | 1,769 | — | 21,120 | ||||||||||||||
Total assets | $ | 868,615 | $ | 381,593 | $ | 579,573 | $ | (549,166 | ) | $ | 1,280,615 | ||||||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY: | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Current portion of notes payable and long-term debt | $ | — | $ | 8,733 | $ | 186 | $ | — | $ | 8,919 | |||||||||
Current portion of employee benefits | — | 915 | — | — | 915 | ||||||||||||||
Intercompany payables | — | 586 | 10,707 | (11,293 | ) | — | |||||||||||||
Income taxes payable, net | — | 5,464 | 4 | (5,372 | ) | 96 | |||||||||||||
Litigation accruals and current payments due under the Master Settlement Agreement | — | 52,145 | — | — | 52,145 | ||||||||||||||
Other current liabilities | 38,140 | 74,083 | 41,994 | — | 154,217 | ||||||||||||||
Total current liabilities | 38,140 | 141,926 | 52,891 | (16,665 | ) | 216,292 | |||||||||||||
Notes payable, long-term debt and other obligations, less current portion | 848,368 | 7,519 | 221 | — | 856,108 | ||||||||||||||
Fair value of derivatives embedded within convertible debt | 144,042 | — | — | — | 144,042 | ||||||||||||||
Non-current employee benefits | 39,244 | 15,811 | — | — | 55,055 | ||||||||||||||
Deferred income taxes, net | 2,675 | 33,791 | 42,963 | — | 79,429 | ||||||||||||||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 2,193 | 44,982 | 4,675 | — | 51,850 | ||||||||||||||
Total liabilities | 1,074,662 | 244,029 | 100,750 | (16,665 | ) | 1,402,776 | |||||||||||||
Commitments and contingencies | |||||||||||||||||||
Stockholders' (deficiency) equity attributed to Vector Group Ltd. | (206,047 | ) | 137,564 | 394,937 | (532,501 | ) | (206,047 | ) | |||||||||||
Non-controlling interest | — | — | 83,886 | — | 83,886 | ||||||||||||||
Total stockholders' (deficiency) equity | (206,047 | ) | 137,564 | 478,823 | (532,501 | ) | (122,161 | ) | |||||||||||
Total liabilities and stockholders' deficiency | $ | 868,615 | $ | 381,593 | $ | 579,573 | $ | (549,166 | ) | $ | 1,280,615 |
Three Months Ended June 30, 2016 | |||||||||||||||||||
Subsidiary | Consolidated | ||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | |||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | |||||||||||||||
Revenues | $ | — | $ | 255,648 | $ | 182,765 | $ | (140 | ) | $ | 438,273 | ||||||||
Expenses: | |||||||||||||||||||
Cost of sales | — | 168,614 | 115,017 | — | 283,631 | ||||||||||||||
Operating, selling, administrative and general expenses | 9,019 | 18,943 | 56,100 | (140 | ) | 83,922 | |||||||||||||
Management fee expense | — | 2,663 | — | (2,663 | ) | — | |||||||||||||
Operating (loss) income | (9,019 | ) | 65,428 | 11,648 | 2,663 | 70,720 | |||||||||||||
Other income (expenses): | |||||||||||||||||||
Interest expense | (35,522 | ) | (843 | ) | (4 | ) | — | (36,369 | ) | ||||||||||
Change in fair value of derivatives embedded within convertible debt | 7,416 | — | — | — | 7,416 | ||||||||||||||
Equity in earnings from real estate ventures | — | — | 2,813 | — | 2,813 | ||||||||||||||
Equity in earnings (loss) from investments | 1,097 | (8 | ) | — | — | 1,089 | |||||||||||||
Gain on sale of investment securities available for sale | 139 | — | — | — | 139 | ||||||||||||||
Impairment of investment securities available for sale | (49 | ) | — | — | — | (49 | ) | ||||||||||||
Equity in earnings in consolidated subsidiaries | 46,441 | — | — | (46,441 | ) | — | |||||||||||||
Management fee income | 2,663 | — | — | (2,663 | ) | — | |||||||||||||
Other, net | (93 | ) | 244 | 430 | — | 581 | |||||||||||||
Income before provision for income taxes | 13,073 | 64,821 | 14,887 | (46,441 | ) | 46,340 | |||||||||||||
Income tax benefit (expense) | 10,942 | (24,907 | ) | (5,038 | ) | — | (19,003 | ) | |||||||||||
Net income | 24,015 | 39,914 | 9,849 | (46,441 | ) | 27,337 | |||||||||||||
Net income attributed to non-controlling interest | — | — | (3,322 | ) | — | (3,322 | ) | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 24,015 | $ | 39,914 | $ | 6,527 | $ | (46,441 | ) | $ | 24,015 | ||||||||
Comprehensive income attributed to non-controlling interest | $ | — | $ | — | $ | (3,322 | ) | $ | — | $ | (3,322 | ) | |||||||
Comprehensive income attributed to Vector Group Ltd. | $ | 23,746 | $ | 39,793 | $ | 6,527 | $ | (46,320 | ) | $ | 23,746 |
Three Months Ended June 30, 2015 | |||||||||||||||||||
Subsidiary | Consolidated | ||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | |||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | |||||||||||||||
Revenues | $ | — | $ | 255,291 | $ | 161,022 | $ | (140 | ) | $ | 416,173 | ||||||||
Expenses: | |||||||||||||||||||
Cost of sales | — | 175,334 | 103,870 | — | 279,204 | ||||||||||||||
Operating, selling, administrative and general expenses | 7,174 | 22,555 | 50,327 | (140 | ) | 79,916 | |||||||||||||
Litigation settlement and judgment expense | — | 1,250 | — | — | 1,250 | ||||||||||||||
Management fee expense | — | 2,563 | — | (2,563 | ) | — | |||||||||||||
Operating (loss) income | (7,174 | ) | 53,589 | 6,825 | 2,563 | 55,803 | |||||||||||||
Other income (expenses): | |||||||||||||||||||
Interest expense | (30,880 | ) | (879 | ) | (2 | ) | — | (31,761 | ) | ||||||||||
Change in fair value of derivatives embedded within convertible debt | 5,256 | — | — | — | 5,256 | ||||||||||||||
Equity in earnings from real estate ventures | — | — | 1,856 | — | 1,856 | ||||||||||||||
Equity in loss from investments | (2,147 | ) | (16 | ) | — | — | (2,163 | ) | |||||||||||
Loss on sale of investment securities available for sale | (190 | ) | — | — | — | (190 | ) | ||||||||||||
Equity in earnings in consolidated subsidiaries | 35,745 | — | — | (35,745 | ) | — | |||||||||||||
Management fee income | 2,563 | — | — | (2,563 | ) | — | |||||||||||||
Other, net | 1,192 | 200 | 429 | — | 1,821 | ||||||||||||||
Income before provision for income taxes | 4,365 | 52,894 | 9,108 | (35,745 | ) | 30,622 | |||||||||||||
Income tax benefit (expense) | 13,242 | (21,219 | ) | (3,201 | ) | — | (11,178 | ) | |||||||||||
Net income | 17,607 | 31,675 | 5,907 | (35,745 | ) | 19,444 | |||||||||||||
Net income attributed to non-controlling interest | — | — | (1,837 | ) | — | (1,837 | ) | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 17,607 | $ | 31,675 | $ | 4,070 | $ | (35,745 | ) | $ | 17,607 | ||||||||
Comprehensive income attributed to non-controlling interest | $ | — | $ | — | $ | (1,837 | ) | $ | — | $ | (1,837 | ) | |||||||
Comprehensive income attributed to Vector Group Ltd. | $ | 17,834 | $ | 31,131 | $ | 4,070 | $ | (35,201 | ) | $ | 17,834 |
Six Months Ended June 30, 2016 | |||||||||||||||||||
Subsidiary | Consolidated | ||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | |||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | |||||||||||||||
Revenues | $ | — | $ | 476,790 | $ | 342,512 | $ | (229 | ) | $ | 819,073 | ||||||||
Expenses: | |||||||||||||||||||
Cost of sales | — | 305,358 | 214,695 | — | 520,053 | ||||||||||||||
Operating, selling, administrative and general expenses | 18,215 | 37,216 | 108,548 | (229 | ) | 163,750 | |||||||||||||
Litigation settlement and judgment expense | — | 2,350 | — | — | 2,350 | ||||||||||||||
Management fee expense | — | 5,325 | — | (5,325 | ) | — | |||||||||||||
Restructuring charges | — | 41 | — | — | 41 | ||||||||||||||
Operating (loss) income | (18,215 | ) | 126,500 | 19,269 | 5,325 | 132,879 | |||||||||||||
Other income (expenses): | |||||||||||||||||||
Interest expense | (65,280 | ) | (1,802 | ) | (7 | ) | — | (67,089 | ) | ||||||||||
Change in fair value of derivatives embedded within convertible debt | 17,110 | — | — | — | 17,110 | ||||||||||||||
Equity in earnings from real estate ventures | — | — | 2,306 | — | 2,306 | ||||||||||||||
Equity in losses from investments | (558 | ) | (24 | ) | — | — | (582 | ) | |||||||||||
Gain on sale of investment securities available for sale | 315 | 391 | — | — | 706 | ||||||||||||||
Impairment of investment securities available for sale | (90 | ) | (4,772 | ) | — | — | (4,862 | ) | |||||||||||
Equity in earnings in consolidated subsidiaries | 82,051 | — | — | (82,051 | ) | — | |||||||||||||
Management fee income | 5,325 | — | — | (5,325 | ) | — | |||||||||||||
Other, net | 307 | 481 | 840 | — | 1,628 | ||||||||||||||
Income before provision for income taxes | 20,965 | 120,774 | 22,408 | (82,051 | ) | 82,096 | |||||||||||||
Income tax benefit (expense) | 22,388 | (48,293 | ) | (7,461 | ) | — | (33,366 | ) | |||||||||||
Net income | 43,353 | 72,481 | 14,947 | (82,051 | ) | 48,730 | |||||||||||||
Net income attributed to non-controlling interest | — | — | (5,377 | ) | — | (5,377 | ) | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 43,353 | $ | 72,481 | $ | 9,570 | $ | (82,051 | ) | $ | 43,353 | ||||||||
Comprehensive income attributed to non-controlling interest | $ | — | $ | — | $ | (5,377 | ) | $ | — | $ | (5,377 | ) | |||||||
Comprehensive income attributed to Vector Group Ltd. | $ | 43,127 | $ | 72,503 | $ | 9,570 | $ | (82,073 | ) | $ | 43,127 |
Six Months Ended June 30, 2015 | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | |||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | |||||||||||||||
Revenues | $ | — | $ | 483,914 | $ | 293,278 | $ | (259 | ) | $ | 776,933 | ||||||||
Expenses: | |||||||||||||||||||
Cost of sales | — | 332,994 | 188,228 | — | 521,222 | ||||||||||||||
Operating, selling, administrative and general expenses | 14,368 | 43,892 | 96,096 | (259 | ) | 154,097 | |||||||||||||
Litigation settlement and judgment expense | — | 2,093 | — | — | 2,093 | ||||||||||||||
Management fee expense | — | 5,125 | — | (5,125 | ) | — | |||||||||||||
Operating (loss) income | (14,368 | ) | 99,810 | 8,954 | 5,125 | 99,521 | |||||||||||||
Other income (expenses): | |||||||||||||||||||
Interest expense | (61,634 | ) | (1,870 | ) | (3 | ) | — | (63,507 | ) | ||||||||||
Change in fair value of derivatives embedded within convertible debt | 11,716 | — | — | — | 11,716 | ||||||||||||||
Equity in earnings from real estate ventures | — | — | 2,194 | — | 2,194 | ||||||||||||||
(Loss) gain on sale of investment securities available for sale | (336 | ) | 13,175 | — | — | 12,839 | |||||||||||||
Equity in losses from investments | (1,543 | ) | (8 | ) | — | — | (1,551 | ) | |||||||||||
Equity in earnings in consolidated subsidiaries | 71,744 | — | — | (71,744 | ) | — | |||||||||||||
Management fee income | 5,125 | — | — | (5,125 | ) | — | |||||||||||||
Other, net | 2,257 | 520 | 981 | — | 3,758 | ||||||||||||||
Income before provision for income taxes | 12,961 | 111,627 | 12,126 | (71,744 | ) | 64,970 | |||||||||||||
Income tax benefit (expense) | 25,867 | (45,403 | ) | (4,509 | ) | — | (24,045 | ) | |||||||||||
Net income | 38,828 | 66,224 | 7,617 | (71,744 | ) | 40,925 | |||||||||||||
Net income attributed to non-controlling interest | — | — | (2,097 | ) | — | (2,097 | ) | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 38,828 | $ | 66,224 | $ | 5,520 | $ | (71,744 | ) | $ | 38,828 | ||||||||
Comprehensive income attributed to non-controlling interest | $ | — | $ | — | $ | (2,097 | ) | $ | — | $ | (2,097 | ) | |||||||
Comprehensive income attributed to Vector Group Ltd. | $ | 44,037 | $ | 63,398 | $ | 5,520 | $ | (68,918 | ) | $ | 44,037 |
Six Months Ended June 30, 2016 | |||||||||||||||||||
Subsidiary | Consolidated | ||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | |||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | |||||||||||||||
Net cash provided by operating activities | $ | 73,915 | $ | 75,513 | $ | 28,437 | $ | (99,040 | ) | $ | 78,825 | ||||||||
Cash flows from investing activities: | |||||||||||||||||||
Sale of investment securities | 62,312 | 4,721 | — | — | 67,033 | ||||||||||||||
Maturities of investment securities | 343 | — | — | — | 343 | ||||||||||||||
Purchase of investment securities | (56,691 | ) | — | — | — | (56,691 | ) | ||||||||||||
Proceeds from sale or liquidation of long-term investments | 1,000 | — | — | — | 1,000 | ||||||||||||||
Purchase of long-term investments | — | — | (50 | ) | — | (50 | ) | ||||||||||||
Investments in real estate ventures | — | — | (11,806 | ) | — | (11,806 | ) | ||||||||||||
Distributions from investments in real estate ventures | — | — | 17,983 | — | 17,983 | ||||||||||||||
Increase in cash surrender value of life insurance policies | — | (393 | ) | — | — | (393 | ) | ||||||||||||
(Increase) decrease in restricted assets | (7 | ) | 2,181 | 500 | — | 2,674 | |||||||||||||
Investments in subsidiaries | (987 | ) | — | — | 987 | — | |||||||||||||
Proceeds from sale of fixed assets | — | 4 | 1 | — | 5 | ||||||||||||||
Capital expenditures | (26 | ) | (3,716 | ) | (3,873 | ) | — | (7,615 | ) | ||||||||||
Pay downs of investment securities | 4,926 | — | — | — | 4,926 | ||||||||||||||
Investments in real estate, net | — | — | (81 | ) | — | (81 | ) | ||||||||||||
Net cash provided by investing activities | 10,870 | 2,797 | 2,674 | 987 | 17,328 | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from issuance of debt | 243,225 | — | 57 | — | 243,282 | ||||||||||||||
Deferred financing costs | (6,600 | ) | — | — | — | (6,600 | ) | ||||||||||||
Repayments of debt | — | (2,863 | ) | (54 | ) | — | (2,917 | ) | |||||||||||
Borrowings under revolver | — | 89,695 | — | — | 89,695 | ||||||||||||||
Repayments on revolver | — | (80,223 | ) | — | — | (80,223 | ) | ||||||||||||
Capital contributions received | — | 600 | 387 | (987 | ) | — | |||||||||||||
Intercompany dividends paid | — | (65,648 | ) | (33,392 | ) | 99,040 | — | ||||||||||||
Dividends and distributions on common stock | (97,846 | ) | — | — | — | (97,846 | ) | ||||||||||||
Contributions from non-controlling interest | — | — | 248 | — | 248 | ||||||||||||||
Distributions to non-controlling interest | — | — | (7,422 | ) | — | (7,422 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 138,779 | (58,439 | ) | (40,176 | ) | 98,053 | 138,217 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 223,564 | 19,871 | (9,065 | ) | — | 234,370 | |||||||||||||
Cash and cash equivalents, beginning of period | 111,470 | 12,375 | 116,523 | — | 240,368 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 335,034 | $ | 32,246 | $ | 107,458 | $ | — | $ | 474,738 |
Six Months Ended June 30, 2015 | |||||||||||||||||||
Subsidiary | Consolidated | ||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | |||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | |||||||||||||||
Net cash provided by operating activities | $ | 42,679 | $ | 99,159 | $ | 13,057 | $ | (71,010 | ) | $ | 83,885 | ||||||||
Cash flows from investing activities: | |||||||||||||||||||
Sale of investment securities | 103,846 | 14,415 | — | — | 118,261 | ||||||||||||||
Maturities of investment securities | 1,737 | — | — | — | 1,737 | ||||||||||||||
Purchase of investment securities | (112,119 | ) | (1,476 | ) | — | — | (113,595 | ) | |||||||||||
Proceeds from sale or liquidation of long-term investments | 1,106 | — | 148 | — | 1,254 | ||||||||||||||
Purchase of long-term investments | (5,000 | ) | — | — | — | (5,000 | ) | ||||||||||||
Investments in real estate ventures | — | — | (34,857 | ) | — | (34,857 | ) | ||||||||||||
Investments in real estate, net | — | — | (12,502 | ) | — | (12,502 | ) | ||||||||||||
Increase in cash surrender value of life insurance policies | (717 | ) | (401 | ) | — | — | (1,118 | ) | |||||||||||
Increase in restricted assets | (1,327 | ) | (6,607 | ) | — | — | (7,934 | ) | |||||||||||
Issuance of notes receivable | — | — | (4,410 | ) | — | (4,410 | ) | ||||||||||||
Pay downs of investment securities | 3,530 | — | — | — | 3,530 | ||||||||||||||
Proceeds from sale of fixed assets | — | 3 | — | — | 3 | ||||||||||||||
Investments in subsidiaries | (42,808 | ) | — | — | 42,808 | — | |||||||||||||
Proceeds from sale of preferred securities | — | — | 1,000 | 1,000 | |||||||||||||||
Capital expenditures | — | (2,350 | ) | (3,029 | ) | — | (5,379 | ) | |||||||||||
Net cash (used in) provided by investing activities | (51,752 | ) | 3,584 | (53,650 | ) | 42,808 | (59,010 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from issuance of debt | — | 22 | — | — | 22 | ||||||||||||||
Deferred financing costs | — | (625 | ) | — | — | (625 | ) | ||||||||||||
Repayments of debt | — | (3,254 | ) | (120 | ) | — | (3,374 | ) | |||||||||||
Borrowings under revolver | — | 126,727 | — | — | 126,727 | ||||||||||||||
Repayments on revolver | — | (144,492 | ) | — | — | (144,492 | ) | ||||||||||||
Capital contributions received | — | 2,250 | 40,558 | (42,808 | ) | — | |||||||||||||
Intercompany dividends paid | — | (69,075 | ) | (1,935 | ) | 71,010 | — | ||||||||||||
Dividends and distributions on common stock | (92,778 | ) | — | — | — | (92,778 | ) | ||||||||||||
Proceeds from exercise of Vector options | 1,219 | — | — | — | 1,219 | ||||||||||||||
Tax benefit of options exercised | 384 | — | — | — | 384 | ||||||||||||||
Net cash (used in) provided by financing activities | (91,175 | ) | (88,447 | ) | 38,503 | 28,202 | (112,917 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | (100,248 | ) | 14,296 | (2,090 | ) | — | (88,042 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 211,751 | 9,724 | 104,890 | — | 326,365 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 111,503 | $ | 24,020 | $ | 102,800 | $ | — | $ | 238,323 |
• | the manufacture and sale of cigarettes in the United States through our Liggett Group LLC and Vector Tobacco Inc. subsidiaries, |
• | the sale of electronic cigarettes in the United States through our Zoom E-Cigs LLC subsidiary, and |
• | the real estate business through our New Valley LLC subsidiary, which is seeking to acquire or invest in additional real estate properties or projects. New Valley owns 70.59% of Douglas Elliman, which operates the largest residential brokerage company in the New York metropolitan area |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenues: | ||||||||||||||||
Tobacco | $ | 255,498 | $ | 254,890 | $ | 476,513 | $ | 482,975 | ||||||||
E-Cigarettes | 10 | 261 | 48 | 680 | ||||||||||||
Real Estate | 182,765 | 161,022 | 342,512 | 293,278 | ||||||||||||
Total revenues | $ | 438,273 | $ | 416,173 | $ | 819,073 | $ | 776,933 | ||||||||
Operating income (loss): | ||||||||||||||||
Tobacco | $ | 66,016 | $ | 56,215 | (1) | $ | 127,499 | (2) | $ | 105,885 | (3) | |||||
E-Cigarettes | (91 | ) | (2,400 | ) | (284 | ) | (5,564 | ) | ||||||||
Real Estate | 11,706 | 6,892 | 19,380 | 9,043 | ||||||||||||
Corporate and Other | (6,911 | ) | (4,904 | ) | (13,716 | ) | (9,843 | ) | ||||||||
Total operating income | $ | 70,720 | $ | 55,803 | $ | 132,879 | $ | 99,521 |
(1) | Operating income includes $1,250 of litigation settlement expense and $1,607 of pension settlement expense. |
(2) | Operating income includes $2,350 of litigation settlement expense, and $41 of restructuring expense. |
(3) | Operating income includes $2,093 of litigation settlement expense and $1,607 of pension settlement expense. |
Three Months Ended | |||||||||||
June 30, | |||||||||||
2016 | 2015 | ||||||||||
Manufacturing overhead, raw materials and labor | $ | 29,558 | $ | 32,301 | |||||||
Federal Excise Taxes, net | 106,861 | 108,912 | |||||||||
Tobacco quota buyout expense | — | 664 | (1) | ||||||||
FDA expense | 4,386 | 4,315 | |||||||||
MSA expense, net of market share exemption | 27,802 | 28,675 | |||||||||
Total cost of sales | $ | 168,607 | $ | 174,867 | |||||||
(1) | The quarterly assessments due under the Fair and Equitable Tobacco Reform Act (shown as “Tobacco quota buyout expense” above) expired at the end of 2014. The $664 for the three months ended June 30, 2015 represents a final assessment for the fourth quarter of 2014, which was received in the second quarter of 2015. |
Three Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
Real Estate Revenues: | |||||||
Commission and other brokerage income | $ | 173,368 | $ | 151,020 | |||
Property management income | 7,346 | 7,473 | |||||
Title fees | 1,016 | 1,123 | |||||
Sales on facilities primarily from Escena | 1,035 | 1,179 | |||||
Other | — | 227 | |||||
Total real estate revenues | $ | 182,765 | $ | 161,022 | |||
Real Estate Cost of Sales: | |||||||
Commission and other brokerage income | $ | 113,953 | $ | 102,767 | |||
Cost of sales on facilities primarily from Escena | 893 | 934 | |||||
Title fees | 171 | 169 | |||||
Total real estate cost of sales | $ | 115,017 | $ | 103,870 |
Six Months Ended | |||||||||||
June 30, | |||||||||||
2016 | 2015 | ||||||||||
Manufacturing overhead, raw materials and labor | $ | 55,369 | $ | 61,963 | |||||||
Federal Excise Taxes, net | 197,707 | 206,271 | |||||||||
Tobacco quota buyout expense | — | 664 | (1) | ||||||||
FDA expense | 9,632 | 9,564 | |||||||||
MSA expense, net of market share exemption | 42,637 | 53,435 | |||||||||
Total cost of sales | $ | 305,345 | $ | 331,897 | |||||||
(1) | The quarterly assessments due under the Fair and Equitable Tobacco Reform Act (shown as “Tobacco quota buyout expense” above) expired at the end of 2014. The $664 for the six months ended June 30, 2015 represents a final assessment for the fourth quarter of 2014, which was received in 2015. |
Six Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
Real Estate Revenues: | |||||||
Commission and other brokerage income | $ | 322,722 | $ | 272,726 | |||
Property management income | 14,464 | 14,686 | |||||
Title fees | 2,128 | 1,951 | |||||
Sales on facilities primarily from Escena | 3,195 | 3,524 | |||||
Other | 3 | 391 | |||||
Total real estate revenues | $ | 342,512 | $ | 293,278 | |||
Real Estate Cost of Sales: | |||||||
Commission and other brokerage income | $ | 212,365 | $ | 185,864 | |||
Cost of sales on facilities primarily from Escena | 2,010 | 2,055 | |||||
Title fees | 320 | 309 | |||||
Total real estate cost of sales | $ | 214,695 | $ | 188,228 |
(Dollars in Thousands. Area and Unit Information in Ones) | |||||||||||||||||||||||||||
Location | Date of Initial Investment | Percentage Owned | Net Cash Invested | Cumulative Earnings (Losses) | Carrying Value as of June 30, 2016 | Future Capital Commit- ments from New Valley (1) | Projected Residential and/or Hotel Area | Projected Commercial Space | Projected Number of Residential Lots, Units and/or Hotel Rooms | Projected Construction Start Date | Projected Construction End Date | ||||||||||||||||
Sagaponack | Sagaponack, NY | April 2015 | 100 | % | $ | 12,684 | $ | — | $ | 12,684 | $ | — | TBD | N/A | TBD | N/A | N/A | ||||||||||
Escena, net | Master planned community, golf course, restaurant and shop in Palm Springs, CA | March 2008 | 100 | % | 2,644 | 8,000 | 10,644 | — | 450 | Acres | 667 450 | R Lots H | N/A | N/A | |||||||||||||
Investments in real estate, net | $ | 15,328 | $ | 8,000 | $ | 23,328 | $ | — | |||||||||||||||||||
10 Madison Square West (1107 Broadway) | Flatiron District/NoMad neighborhood, Manhattan, NY | October 2011 | 5.0 | % | $ | 1,351 | $ | 7,837 | $ | 9,188 | $ | — | 260,000 | SF | 20,000 | SF | 124 | R | August 2012 | December 2016 | |||||||
The Marquand (11 East 68th Street) | Upper East Side, Manhattan, NY | December 2011 | 18.0 | % | 3,396 | 5,937 | 9,333 | — | 90,000 | SF | — | 29 | R | June 2012 | Completed | ||||||||||||
11 Beach Street | TriBeCa, Manhattan, NY | June 2012 | 49.5 | % | 12,328 | 1,374 | 13,702 | — | 97,000 | SF | — | 27 | R | May 2014 | December 2016 | ||||||||||||
20 Times Square (701 Seventh Avenue) | Times Square, Manhattan, NY | August 2012 | 7.1 | % | 14,280 | 2,207 | 16,487 | — | 252,000 | SF | 80,000 | SF | 452 | H | September 2013 | January 2018 | |||||||||||
111 Murray Street | TriBeCa, Manhattan, NY | May 2013 | 9.5 | % | 25,719 | (411 | ) | 25,308 | — | 330,000 | SF | 1,700 | SF | 157 | R | September 2014 | September 2018 | ||||||||||
160 Leroy Street (2) | West Greenwich Village, Manhattan, NY | March 2013 | 3.1 | % | 2,664 | 1,847 | 4,511 | — | 130,000 | SF | — | 57 | R | Fall 2015 | March 2018 | ||||||||||||
215 Chrystie Street | Lower East Side, Manhattan, NY | December 2012 | 18.4 | % | 5,297 | 432 | 5,729 | — | 246,000 | SF | — | 11 367 | R H | June 2014 | March 2017 | ||||||||||||
The Dutch (25-19 43rd Avenue) | Long Island City, NY | May 2014 | 9.9 | % | 980 | 149 | 1,129 | 65,000 | SF | — | 86 | R | September 2014 | January 2017 | |||||||||||||
Queens Plaza (23-10 Queens Plaza South) | Long Island City, NY | December 2012 | 45.4 | % | 14,711 | 2,123 | 16,834 | — | 260,000 | SF | 25,000 | SF | 391 | R | March 2014 | October 2016 | |||||||||||
87 Park (8701 Collins Avenue) | Miami Beach, FL | December 2013 | 15.0 | % | 8,275 | 571 | 8,846 | — | 160,000 | SF | TBD | 70 | R | October 2015 | September 2018 | ||||||||||||
125 Greenwich Street (2) | Financial District, Manhattan, NY | August 2014 | 13.3 | % | 7,992 | 1,788 | 9,780 | — | 306,000 | SF | 16,000 | SF | 273 | R | March 2015 | March 2019 | |||||||||||
West Hollywood Edition (9040 Sunset Boulevard) | West Hollywood, CA | October 2014 | 48.5 | % | 6,028 | 1,022 | 7,050 | — | 210,000 | SF | — | 20 190 | R H | May 2015 | April 2018 | ||||||||||||
76 Eleventh Avenue | West Chelsea, Manhattan, NY | May 2015 | 5.1 | % | 17,000 | 1,867 | 18,867 | — | 620,000 | SF | 48,000 | SF | 250 | H | September 2016 | March 2019 | |||||||||||
Monad Terrace | Miami Beach, FL | May 2015 | 31.3 | % | 7,635 | 139 | 7,774 | — | 160,000 | SF | — | TBD | R | May 2016 | May 2018 | ||||||||||||
Takanasee | Long Branch, NJ | December 2015 | 22.8 | % | 4,428 | 488 | 4,916 | — | TBD | N/A | TBD | R | TBD | TBD | |||||||||||||
Condominium and Mixed Use Development | $ | 132,084 | $ | 27,370 | $ | 159,454 | $ | — | |||||||||||||||||||
Maryland Portfolio | Primarily Baltimore County, MD | July 2012 | 7.6 | % | $ | 1,395 | $ | (1,395 | ) | $ | — | $ | — | N/A | N/A | 5,517 | R | N/A | N/A | ||||||||
ST Portfolio | Houston, TX and Stamford, CT | November 2013 | 16.3 | % | 5,976 | 3,217 | 9,193 | — | 640,576 | SF | 20,065 | SF | 488 | R | N/A | N/A | |||||||||||
Apartment Buildings | $ | 7,371 | $ | 1,822 | $ | 9,193 | $ | — | |||||||||||||||||||
Park Lane Hotel | Central Park South, Manhattan, NY | November 2013 | 5.2 | % | $ | 26,211 | $ | (5,073 | ) | $ | 21,138 | $ | — | 445,600 | SF | — | 628 | H | N/A | N/A | |||||||
Hotel Taiwana | St. Barthelemy, French West Indies | October 2011 | 17.0 | % | 7,941 | (155 | ) | 7,786 | — | 61,300 | SF | 4,300 | SF | 22 | H | N/A | N/A | ||||||||||
Coral Beach and Tennis Club | Coral Beach, Bermuda | December 2013 | 49.0 | % | 6,048 | (2,886 | ) | 3,162 | — | 52 | Acres | — | 101 | H | N/A | N/A | |||||||||||
Hotels | $ | 40,200 | $ | (8,114 | ) | $ | 32,086 | $ | — | ||||||||||||||||||
The Plaza at Harmon Meadow | Secaucus, NJ | March 2015 | 49.0 | % | $ | 5,217 | $ | (1,535 | ) | $ | 3,682 | $ | — | — | — | 217,613 | SF | — | — | N/A | N /A | ||||||
Commercial | $ | 5,217 | $ | (1,535 | ) | $ | 3,682 | $ | — | ||||||||||||||||||
Total Carrying Value | $ | 200,200 | $ | 27,543 | $ | 227,743 | |||||||||||||||||||||
(1) This column only represents capital commitments required under the various joint venture agreements. However, many of the operating agreements provide for the operating partner to call capital. If a joint venture partner, such as New Valley, declines to fund the capital call, then the partner’s ownership percentage could either be diluted or, in some situations, the character of a funding member’s contribution would be converted from a capital contribution to a member loan. | |||||||||||||||||||||||||||
(2) Carrying value as of June 30, 2016, includes non-controlling interest of $2,172 and $1,853, respectively. | |||||||||||||||||||||||||||
N/A - Not applicable | SF - Square feet | H - Hotel rooms | |||||||||||||||||||||||||
TBD -To be determined | R - Residential Units | R Lots - Residential lots |
Indenture | June 30, 2016 | December 31, 2015 | ||||
Covenant | Requirement | |||||
Consolidated EBITDA, as defined | $75,000 | $314,861 | $268,870 | |||
Leverage ratio, as defined | <3.0 to 1 | 1.71 to 1 | 1.95 to 1 | |||
Secured leverage ratio, as defined | <1.5 to 1 | 0.8 to 1 | 0.9 to 1 |
• | prohibits the sale of modified risk tobacco products (including those described as “light,” “low,” or “mild”) unless authorized by FDA; |
• | requires FDA review to market new tobacco products introduced after the proposed grandfathered date of February 15, 2007. |
• | economic outlook, |
• | capital expenditures, |
• | cost reduction, |
• | legislation and regulations, |
• | cash flows, |
• | operating performance, |
• | litigation, |
• | impairment charges and cost saving associated with restructurings of our tobacco operations, and |
• | related industry developments (including trends affecting our business, financial condition and results of operations). |
• | general economic and market conditions and any changes therein, due to acts of war and terrorism or otherwise, |
• | governmental regulations and policies, |
• | effects of industry competition, |
• | impact of business combinations, including acquisitions and divestitures, both internally for us and externally in the tobacco industry, |
• | impact of legislation on our competitors’ payment obligations, results of operations and product costs, i.e. the impact of federal legislation eliminating the federal tobacco quota system and providing for regulation of tobacco products by the FDA, |
• | impact of substantial increases in federal, state and local excise taxes, |
• | uncertainty related to product liability and other tobacco-related litigations including the Engle progeny cases pending in Florida and other individual and class action cases where certain plaintiffs have alleged compensatory and punitive damage amounts ranging into the hundreds of million and even billions of dollars; and, |
• | potential additional payment obligations for us under the MSA and other settlement agreements with the states. |
• | In June 2015, Douglas Elliman employed a new Chief Financial Officer, who is a licensed Certified Public Accountant (“CPA”) with more than 30 years of experience in the financial departments of publicly-traded companies. In addition, in 2015, Douglas Elliman also added a Director of Sarbanes-Oxley Section 404 Compliance, a corporate controller, who is licensed as a CPA and previously served as a senior manager at a Big Four accounting firm, two regional controllers, who are both currently licensed as CPAs and previously served as managers at Big Four accounting firms, and two accounting managers who are both licensed as CPAs. |
• | In August 2015, Douglas Elliman employed a new Chief Technology Officer (“CTO”) who was previously a technology executive with a large U.S. financial institution. Douglas Elliman’s new CTO oversees, among other things, security of the accuracy and completeness of the Company’s financial reporting. |
• | During 2015, Douglas Elliman improved its documentation of internal controls into a more robust format that has been designed to detect errors that could lead to material misstatements in the Company’s consolidated financial statements. |
• | During 2015, the Company redesigned and implemented a series of newly-created internal controls related to previously improper internal controls related to segregation of duties by accounting and finance personnel at Douglas Elliman. |
(i) | Douglas Elliman’s previous failure to monitor controls in certain areas relating to the period-end financial reporting process, |
(ii) | Douglas Elliman’s previous failure to maintain effective controls over period-end financial reporting processes, including controls over the preparation, analysis and review of certain significant account reconciliations required to assess the appropriateness of account balances at period-end, as well as controls over the preparation and review of the interim and annual financial statements; and, |
(iii) | Douglas Elliman’s previous ineffective controls over the processing and recording of recurring and non-recurring journal entries. |
(i) | Certain controls at Douglas Elliman related to segregation of duties with accounting and finance personnel were designed, but not operating, properly at December 31, 2015; and, |
(ii) | Douglas Elliman did not maintain effective controls over access to its information technology system for finance and accounting (“IT System”). Specifically, root level access to Douglas Elliman’s IT System was shared with the third party software provider that allowed unrestricted and unmonitored access to the application and it database. Further, the Company did not have an effective change management process to reasonably assure that changes to the IT System were properly documented, tracked, reviewed, tested and approved. |
4.1 | Fourth Supplemental Indenture, dated as of May 9, 2016, among Vector Group Ltd., the guarantors named therein and U.S. Bank National Association, as trustee. (incorporated by reference to Exhibit 4.5 of Vector Group Ltd.’s Current Report on Form 8-K dated May 9, 2016). |
4.2 | Registration Rights Agreement, dated as of May 9, 2016, among Vector Group Ltd., the guarantors named therein and Jefferies LLC, as the initial purchaser. (incorporated by reference to Exhibit 4.6 of Vector Group Ltd.’s Current Report on Form 8-K dated May 9, 2016). |
12.1 | Computation of Ratio of Earnings to Fixed Charges for each of the five years within the period ended December 31, 2015 and for each of the six months within the periods ended June 30, 2016 and 2015. |
31.1 | Certification of Chief Executive Officer, Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of Chief Financial Officer, Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certification of Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification of Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
99.1 | Material Legal Proceedings |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | XBRL Taxonomy Extension Definition Linkbase |
101.LAB | XBRL Taxonomy Extension Label Linkbase |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
VECTOR GROUP LTD. | ||
(Registrant) | ||
By: /s/ J. Bryant Kirkland III | ||
J. Bryant Kirkland III | ||
Senior Vice President, Treasurer and | ||
Chief Financial Officer | ||
Date: | August 5, 2016 |
Six Months Ended June 30, | Year Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||
Earnings as defined: | ||||||||||||||||||||
Pre-tax income | 82,096 | 64,970 | 107,705 | 82,279 | 60,720 | 53,806 | 122,245 | |||||||||||||
Distributions from investees | 12,565 | 2,263 | 7,152 | 6,568 | 6,262 | 21,467 | 10,022 | |||||||||||||
Interest expense | 49,979 | 51,791 | 96,236 | 146,787 | 147,084 | 132,538 | 93,939 | |||||||||||||
Income in equity of affiliate | (1,724 | ) | (643 | ) | 680 | (7,243 | ) | (26,051 | ) | (30,028 | ) | (19,256 | ) | |||||||
Interest portion of rental expense (1) | 4,209 | 3,854 | 8,149 | 7,505 | 2,174 | 1,367 | 1,438 | |||||||||||||
Total earnings | 147,125 | 122,235 | 219,922 | 235,896 | 190,189 | 179,150 | 208,388 | |||||||||||||
Fixed charges as defined: | ||||||||||||||||||||
Interest expense | 49,979 | 51,791 | 96,236 | 146,787 | 147,084 | 132,538 | 93,939 | |||||||||||||
Interest portion of rent expense (1) | 4,209 | 3,854 | 8,149 | 7,505 | 2,174 | 1,367 | 1,438 | |||||||||||||
Total fixed charges | 54,188 | 55,645 | 104,385 | 154,292 | 149,258 | 133,905 | 95,377 | |||||||||||||
Ratio of earnings to fixed charges | 2.72 | 2.2 | 2.11 | 1.53 | 1.27 | 1.34 | 2.18 |
1. | I have reviewed this quarterly report on Form 10-Q of Vector Group Ltd.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Howard M. Lorber | |
Howard M. Lorber | |
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Vector Group Ltd.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ J. Bryant Kirkland III | |
J. Bryant Kirkland III | |
Senior Vice President, Treasurer and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Howard M. Lorber | |
Howard M. Lorber | |
President and Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ J. Bryant Kirkland III | |
J. Bryant Kirkland III | |
Senior Vice President, Treasurer and Chief Financial Officer |
(i) | Engle Progeny Cases with trial dates through June 30, 2017 (listed alphabetically). |
(ii) | Post-Trial Engle Progeny Cases. |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Aug. 05, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | VECTOR GROUP LTD | |
Entity Central Index Key | 0000059440 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 123,754,768 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Stockholders' deficiency: | ||
Preferred stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 123,842,329 | 123,792,329 |
Common stock, shares outstanding (in shares) | 123,842,329 | 123,792,329 |
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Statement [Abstract] | ||||
Tax portion of revenues and cost of goods sold | $ 106,861 | $ 108,912 | $ 197,707 | $ 206,271 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 27,337 | $ 19,444 | $ 48,730 | $ 40,925 |
Net unrealized losses on investment securities available for sale: | ||||
Change in net unrealized (losses) gains | (820) | (4,493) | (5,454) | 16,417 |
Net unrealized (gains) losses reclassified into net income | (90) | 190 | 4,156 | (12,839) |
Net unrealized (losses) gains on investment securities available for sale | (910) | (4,303) | (1,298) | 3,578 |
Net unrealized gains on long-term investments accounted for under the equity method: | ||||
Change in net unrealized gains | 0 | 1,176 | 0 | 1,190 |
Net unrealized losses reclassified into net income | 0 | 1,624 | 0 | 1,624 |
Net unrealized gains on long-term investments accounted for under the equity method | 0 | 2,800 | 0 | 2,814 |
Net change in forward contracts | 9 | 16 | 18 | 32 |
Net change in pension-related amounts | ||||
Net loss arising during the year | 0 | 1,607 | 0 | 1,607 |
Amortization of loss | 445 | 254 | 890 | 521 |
Net change in pension-related amounts | 445 | 1,861 | 890 | 2,128 |
Other comprehensive (loss) income | (456) | 374 | (390) | 8,552 |
Income tax effect on: | ||||
Change in net unrealized (losses) gains on investment securities | 337 | 1,857 | 2,245 | (6,603) |
Net unrealized losses (gains) reclassified into net income on investment securities | 37 | (78) | (1,708) | 5,309 |
Change in unrealized gains on long-term investments accounted for under the equity method | 0 | (478) | 0 | (484) |
Net unrealized losses reclassified into net income on long-term investments accounted for under the equity method | 0 | (672) | 0 | (672) |
Forward contracts | (4) | (7) | (7) | (13) |
Pension-related amounts | (183) | (769) | (366) | (880) |
Income tax benefit (provision) on other comprehensive income | 187 | (147) | 164 | (3,343) |
Other comprehensive (loss) income, net of tax | (269) | 227 | (226) | 5,209 |
Comprehensive income | 27,068 | 19,671 | 48,504 | 46,134 |
Comprehensive income attributed to non-controlling interest | (3,322) | (1,837) | (5,377) | (2,097) |
Comprehensive income attributed to Vector Group Ltd. | $ 23,746 | $ 17,834 | $ 43,127 | $ 44,037 |
Condensed Consolidated Statements of Stockholders' Deficiency - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2016 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ (122,161) | |
Beginning Balance (in shares) | 123,792,329 | |
Net income | $ 27,337 | $ 48,730 |
Total other comprehensive loss | (269) | (226) |
Comprehensive income | 27,068 | 48,504 |
Distributions and dividends on common stock | (99,443) | |
Restricted stock grant | 0 | |
Stock-based compensation | 4,838 | |
Contributions from non-controlling interest | 248 | |
Distributions to non-controlling interest | (7,422) | |
Ending Balance | $ (175,436) | $ (175,436) |
Beginning Balance (in shares) | 123,842,329 | 123,842,329 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 12,379 | |
Beginning Balance (in shares) | 123,792,329 | |
Restricted stock grant (in shares) | 50,000 | |
Restricted stock grant | $ 5 | |
Ending Balance | $ 12,384 | $ 12,384 |
Beginning Balance (in shares) | 123,842,329 | 123,842,329 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 0 | |
Distributions and dividends on common stock | (4,833) | |
Restricted stock grant | (5) | |
Stock-based compensation | 4,838 | |
Ending Balance | $ 0 | 0 |
Accumulated Deficit | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (210,113) | |
Net income | 43,353 | |
Distributions and dividends on common stock | (94,610) | |
Ending Balance | (261,370) | (261,370) |
Accumulated Other Comprehensive Income | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (8,313) | |
Total other comprehensive loss | (226) | |
Ending Balance | (8,539) | (8,539) |
Non-controlling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 83,886 | |
Net income | 5,377 | |
Contributions from non-controlling interest | 248 | |
Distributions to non-controlling interest | (7,422) | |
Ending Balance | $ 82,089 | $ 82,089 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Cash Flows [Abstract] | ||
Net cash provided by operating activities | $ 78,825 | $ 83,885 |
Cash flows from investing activities: | ||
Sale of investment securities | 67,033 | 118,261 |
Maturities of investment securities | 343 | 1,737 |
Purchase of investment securities | (56,691) | (113,595) |
Proceeds from sale or liquidation of long-term investments | 1,000 | 1,254 |
Purchase of long-term investments | (50) | (5,000) |
Investments in real estate ventures | (11,806) | (34,857) |
Distributions from investments in real estate ventures | 17,983 | 0 |
Increase in cash surrender value of life insurance policies | (393) | (1,118) |
Decrease (increase) in restricted assets | 2,674 | (7,934) |
Issuance of notes receivable | 0 | (4,410) |
Proceeds from sale of fixed assets | 5 | 3 |
Capital expenditures | (7,615) | (5,379) |
Pay downs of investment securities | 4,926 | 3,530 |
Proceeds from sale of preferred securities | 0 | 1,000 |
Investments in real estate, net | (81) | (12,502) |
Net cash provided by (used in) investing activities | 17,328 | (59,010) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 243,282 | 22 |
Deferred financing costs | (6,600) | (625) |
Repayments of debt | (2,917) | (3,374) |
Borrowings under revolver | 89,695 | 126,727 |
Repayments on revolver | (80,223) | (144,492) |
Dividends and distributions on common stock | (97,846) | (92,778) |
Contributions from non-controlling interest | 248 | 0 |
Distributions to non-controlling interest | (7,422) | 0 |
Proceeds from exercise of Vector options | 0 | 1,219 |
Tax benefit of options exercised | 0 | 384 |
Net cash provided by (used in) financing activities | 138,217 | (112,917) |
Net increase (decrease) in cash and cash equivalents | 234,370 | (88,042) |
Cash and cash equivalents, beginning of period | 240,368 | 326,365 |
Cash and cash equivalents, end of period | $ 474,738 | $ 238,323 |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The condensed consolidated financial statements of Vector Group Ltd. (the “Company” or “Vector”) include the accounts of VGR Holding LLC (“VGR Holding”), Liggett Group LLC (“Liggett”), Vector Tobacco Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), Zoom E-Cigs LLC (“Zoom”), New Valley LLC (“New Valley”) and other less significant subsidiaries. New Valley includes the accounts of Douglas Elliman Realty, LLC (“Douglas Elliman”) and other less significant subsidiaries. All intercompany balances and transactions have been eliminated. Liggett and Vector Tobacco are engaged in the manufacture and sale of cigarettes in the United States. Zoom is engaged in the sale of electronic cigarettes in the United States. New Valley is engaged in the real estate business. The unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and, in management's opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair statement of the results for the periods presented. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission. The consolidated results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the entire year. Revisions to December 31, 2015 Consolidated Balance Sheet. In April 2015, the FASB issued ASU No. 2015-03, “Interest-Imputation of Interest” (“ASU 2015-03”), which requires debt issuance costs to be reported in the balance sheet as a direct deduction from the face amount of the note. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015. This amendment must be applied retrospectively to all periods presented. The Company adopted the provisions of this ASU retrospectively in the first quarter of 2016, and adjusted all prior periods accordingly. The adoption of this ASU will simplify the presentation of debt issuance costs and reduce complexity without decreasing the usefulness of information provided to users of financial statements. The cumulative impacts of the application of the new ASU are presented in the table below:
Adoption of Equity Method. The Company adopted the equity method of accounting for its investments in Ladenburg Thalmann Financial Services Inc. (“LTS”) and Castle Brands Inc. (“Castle”) in 2015 because the Company determined that it had significant influence due to the evolution of the relationships with each company. In accordance with ASC 323-35-33, the Company has adjusted its condensed consolidated financial statements, retrospectively, on a step-by-step basis as if the equity method had been in effect since inception. The cumulative impact of the retrospective application of the equity method of accounting for the two investments are presented in the table below:
The Company records distributions on its common stock as dividends in its condensed consolidated statement of stockholders' deficiency to the extent of retained earnings and accumulated paid-in capital. Any amounts exceeding retained earnings are recorded as a reduction to additional paid-in capital to the extent paid-in-capital is available. The Company’s stock dividends are recorded as stock splits and given retroactive effect to earnings per share for all periods presented.
Tobacco and E-Cigarettes sales: Revenues from sales are recognized upon the shipment of finished goods when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sale price is fixed or determinable and collectibility is reasonably assured. The Company provides an allowance for expected sales returns, net of any related inventory cost recoveries (e.g. federal excise taxes). Certain sales incentives, including promotional price discounts, are classified as reductions of net sales. The Company includes federal excise taxes on tobacco sales in revenues and cost of goods sold. Since the Company’s primary line of business is tobacco, the Company’s financial position and its results of operations and cash flows have been and could continue to be materially adversely affected by significant unit sales volume declines at the Company and industry levels, regulation, litigation and defense costs, increased tobacco costs or reductions in the selling price of cigarettes in the near term. Real estate sales: Revenue is recognized only when persuasive evidence of an arrangement exists, the price is fixed or determinable, the transaction has been completed and collectibility of the resulting receivable is reasonably assured. Real estate commissions earned by the Company’s real estate brokerage businesses are recorded as revenue on a gross basis upon the closing of a real estate transaction as evidenced when the escrow or similar account is closed, the transaction documents have been recorded and funds are distributed to all appropriate parties. Commission expenses are recognized concurrently with related revenues. Property management fees and rental commissions earned are recorded as revenue when the related services are performed and the earnings process is complete.
Information concerning the Company's common stock has been adjusted to give retroactive effect to the 5% stock dividend paid to Company stockholders on September 29, 2015. All per share amounts and references to share amounts have been updated to reflect the retrospective effect of the stock dividends. Net income for purposes of determining basic and diluted EPS was as follows:
Basic and diluted EPS were calculated using the following common shares:
The following were outstanding during the three and six months ended June 30, 2016 and 2015, but were not included in the computation of diluted EPS because the effect was anti-dilutive.
The Company has estimated the fair value of the embedded derivatives based principally on the results of a valuation model. A readily determinable fair value of the embedded derivatives is not available. The estimated fair value of the derivatives embedded within the convertible debt is based principally on the present value of future dividend payments expected to be received by the convertible debt holders over the term of the debt. The discount rate applied to the future cash flows is estimated based on a spread in the yield of the Company's debt when compared to risk-free securities with the same duration. The valuation model assumes future dividend payments by the Company and utilizes interest rates and credit spreads for secured to unsecured debt, unsecured to subordinated debt and subordinated debt to preferred stock to determine the fair value of the derivatives embedded within the convertible debt. At June 30, 2016, the range of estimated fair values of the Company's embedded derivatives was between $125,983 and $127,870. The Company recorded the fair value of its embedded derivatives at the approximate midpoint of the range at $126,932 as of June 30, 2016. At December 31, 2015, the range of estimated fair values of the Company's embedded derivatives was between $143,422 and $144,660. The Company recorded the fair value of its embedded derivatives at the midpoint of the range at $144,042 as of December 31, 2015. The estimated fair value of the Company's embedded derivatives could change significantly based on future market conditions. (See Note 6.)
The Company's investment in real estate ventures are subject to evaluation under ASU No. 2015-02, “Consolidation” (“ASU 2015-02”) which requires all legal entities to be evaluated as either a voting interest entity or a Variable Interest Entities (“VIE”). The guidance is effective for financial statements of public companies issued for fiscal years beginning after December 15, 2015. The Company has followed the decision tree set forth in ASC 810-10-05-6 in analyzing each of its investments in real estate ventures. The Company examines specific criteria and uses judgment when determining if the real estate venture is a VIE and then if the Company is the primary beneficiary of a VIE. Factors considered in the qualification of a VIE include sufficient equity investment at risk, disproportionate voting rights and substantially all of the activities are conducted on behalf of an investor with disproportionately few voting rights, and characteristics of a controlling financial interest. Accounting guidance requires the Company to perform the VIE primary-beneficiary assessment for entities determined to be VIEs. The Company is required to consolidate all VIEs in which the Company is the primary beneficiary. The guidance requires consolidation of VIEs that a reporting entity has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly affect the VIE's economic performance and (b) the obligation to absorb losses or the right to receive residual returns of the VIE that could potentially be significant to the VIE. The Company's maximum exposure to loss in its investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs which is the carrying value. The Company's maximum exposure to loss in its investment in its consolidated VIEs is limited to its investment which is the carrying value of the investment net of the non-controlling interest. Creditors of the consolidated VIEs have no recourse to the general credit of the primary beneficiary.
Other income, net consisted of:
Other current liabilities consisted of:
The components of “Goodwill and other intangible assets, net” were as follows:
Douglas Elliman Lease Extension. On March 31, 2016, Douglas Elliman extended the duration of an existing lease and entered into a sublease for additional space in New York. The agreement extended the lease term from 2018 to 2032. The new agreements increase the Company’s lease commitments by $0 in 2016, $1,164 in 2017, $1,412 in 2018, $3,733 in 2019, $5,394 in 2020 and $69,460 thereafter.
In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 modifies U.S. Generally Accepted Accounting Principles (“GAAP”) by requiring the following, among others: (1) all excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit on the income statement (excess tax benefits are recognized regardless of whether the benefit reduces taxes payable in the current period); (2) excess tax benefits are to be classified along with other income tax cash flows as an operating activity in the statement of cash flows; (3) in the area of forfeitures, an entity can still follow the current U.S. GAAP practice of making an entity-wide accounting policy election to estimate the number of awards that are expected to vest or may instead account for forfeitures when they occur; and (4) classification as a financing activity in the statement of cash flows of cash paid by an employer to the taxing authorities when directly withholding shares for tax withholding purposes. ASU 2016-09 is effective for the Company's fiscal year beginning January 1, 2017, including interim periods. Early application is permitted. The Company is currently assessing the impact the adoption of ASU 2016-09 will have on the Company's condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 does not change the core principle of the guidance stated in ASU 2014-09, instead, the amendments in this ASU are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations and whether an entity reports revenue on a gross or net basis. ASU 2016-08 will have the same effective date and transition requirements as the new revenue standard issued in ASU 2014-09. The Company is currently evaluating the method and impact the adoption of this ASU and ASU 2014-09 will have on the Company's condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Investments- Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 will be effective for the Company’s fiscal year beginning January 1, 2017 and subsequent interim periods. The adoption of ASU 2016-07 is not expected to have a material effect on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (a consensus of the Emerging Issues Task Force) (“ASU 2016-06”). ASU 2016-06 clarifies the requirement for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under ASU 2016-06 is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments in ASU 2016-06 are effective for the Company's fiscal year beginning January 1, 2017, including interim periods. The Company is currently evaluating the method and impact the adoption of this ASU 2016-06 will have on the Company's condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. Accounting for lessors remains largely unchanged from current U.S. GAAP. ASU 2016-02 will be effective for the Company’s fiscal year beginning January 1, 2019 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on the Company's condensed consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such these investments may be measured at cost. ASU 2016-01 will be effective for the Company’s fiscal year beginning January 1, 2018 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-01 will have on the Company’s condensed consolidated financial statements. In May 2014, FASB issued ASU 2014-9, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-9”). ASU 2014-9 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. As amended by ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date the new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning subsequent to December 15, 2016. The new standard is required to be applied retrospectively to each prior reporting period presented or with the cumulative effect of initially applying it recognized at the date of initial application. The Company has not yet selected a transition method and it has not determined the impact of the new standard on the Company's condensed consolidated financial statements. |
Inventories |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES Inventories consist of:
All of the Company's inventories at June 30, 2016 and December 31, 2015 are reported under the LIFO method. The $28,280 LIFO adjustment as of June 30, 2016 decreases the current cost of inventories by $18,863 for Leaf tobacco, $643 for Other raw materials, $33 for Work-in-Process, $8,736 for Finished goods and $5 for E-Cigarettes. The $29,280 LIFO adjustment as of December 31, 2015 decreased the current cost of inventories by $19,863 for Leaf tobacco, $643 for Other raw materials, $33 for Work-in-Process, $8,736 for Finished goods and $5 for E-Cigarettes. Liggett enters into purchase commitments with third party providers for leaf tobacco that will be used entirely for future production. The future quantities of leaf tobacco and prices are established at the date of the commitments. At June 30, 2016, Liggett had tobacco purchase commitments of approximately $16,151. Liggett has a single source supply agreement for reduced ignition propensity cigarette paper through 2019. The Company capitalizes the incremental prepaid cost of the MSA in ending inventory. Each period, the Company capitalizes in inventory that portion of its MSA liability that relates to cigarettes shipped to public warehouses but not sold. The amount of capitalized MSA cost in “Finished goods” inventory was $15,865 and $15,796 at June 30, 2016 and December 31, 2015, respectively. Federal excise tax in inventory was $26,417 and $23,455 at June 30, 2016 and December 31, 2015. |
Investment Securities Available for Sale |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities Available for Sale | INVESTMENT SECURITIES AVAILABLE FOR SALE The components of investment securities available for sale at June 30, 2016 were as follows:
The components of investment securities available for sale at December 31, 2015 were as follows:
The table below summarizes the maturity dates of marketable debt securities at June 30, 2016.
The available-for-sale investment securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:
Unrealized losses from mutual funds invested in fixed-income securities are primarily attributable to changes in interest rates. Unrealized losses from equity securities are due to market price movements. The Company believes the unrealized losses associated with the Company's equity securities will be recovered in the future. Gross realized gains and losses on available-for-sale investment securities were as follows:
The Company recorded an “Other-than-temporary impairment” charge of $49 and $4,862 during the three and six months ended June 30, 2016. The largest component of the charge for the six months ended June 30, 2016 was $4,772 related to an investment in the common stock of Morgans Hotel Group Co., a company where Vector's President and Chief Executive Officer also serves as Chairman of the Board of Directors. Although management generally does not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing the Company's investment securities portfolio, management may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements. Proceeds from investment securities sales totaled $67,033 and $118,261 and proceeds from early redemptions by issuers totaled $5,269 and $5,267 in the six months ended June 30, 2016 and 2015, respectively, mainly from sales of Corporate securities and U.S. Government securities. |
Long-Term Investments |
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Long-term Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments | LONG-TERM INVESTMENTS Long-term investments consisted of the following:
(a) Cost-Method Investments: Long-term investments accounted for at cost consisted of the following:
The principal business of the investment partnerships is investing in investment securities and real estate. The estimated fair value of the investment partnerships was provided by the partnerships based on the indicated market values of the underlying assets or investment portfolio. The investments in these investment partnerships are illiquid and the ultimate realization of these investments is subject to the performance of the underlying partnership and its management by the general partners. In the future, the Company may invest in other investments, including limited partnerships, real estate investments, equity securities, debt securities, derivatives and certificates of deposit, depending on risk factors and potential rates of return. If it is determined that an other-than-temporary decline in fair value exists in long-term investments, the Company records an impairment charge with respect to such investment in its consolidated statements of operations. The Company will continue to perform additional assessments to determine the impact, if any, on the Company’s condensed consolidated financial statements. Thus, future impairment charges may occur. The Company has accounted for these investments using the cost method of accounting because the investments did not meet the requirements for equity method accounting. The Company received cash distributions of $1,000 and $371 from the Company's investments in long-term investments under the cost method for the six months ended June 30, 2016 and 2015, respectively. The Company invested $5,000 in a reinsurance company during the six months ended June 30, 2015. The long-term investments are carried on the consolidated balance sheet at cost. The fair value determination disclosed above would be classified as Level 3 under fair value hierarchy disclosed in Note 11 if such assets were recorded on the consolidated balance sheet at fair value. The fair value determinations disclosed above were based on company assumptions, and information obtained from the partnerships based on the indicated market values of the underlying assets of the investment portfolio. (b) Equity-Method Investments: Long-term investments accounted for under the equity method consisted of the following:
The Company's investments accounted for under the equity method include the following: Indian Creek Investors LP (“Indian Creek”), Boyar Value Fund (“Boyar”), Ladenburg Thalmann Financial Services Inc. (“LTS”) and Castle Brands Inc. (“Castle”). At June 30, 2016, the Company's ownership percentages in Indian Creek, Boyar, LTS and Castle were 20.13%, 30.65%, 7.75% and 7.91%, respectively. The Company accounted for its Indian Creek and Boyar interests as equity-method investments because the Company's ownership percentage meets the threshold for equity-method accounting. The Company accounted for its LTS and Castle interests as equity-method investments because, in accordance with generally accepted accounting principles, the Company has the ability to exercise significant influence over their operating and financial policies. The principal business of Indian Creek is investing in investment securities. Fair value approximates carrying value. The estimated fair value of the investment partnership was provided by the partnership based on the indicated market values of the underlying assets or investment portfolio. The investment in the investment partnership is illiquid and the ultimate realization of the investment is subject to the performance of the underlying partnership and its management by the general partners. The Company's investments under the equity method include an investment in Boyar. The value of the investment based on the quoted market price as of June 30, 2016 was $7,312, equal to its carrying value. Ladenburg Thalmann Fund Management, LLC, an indirect subsidiary of LTS, is the manager of Boyar. At June 30, 2016, the aggregate values of the LTS and Castle investments based on the quoted market price were $33,491 and $9,250, respectively. The Company received cash distributions of $572 and $1,754 from the Company's investments in long-term investments under the equity method for the six months ended June 30, 2016 and 2015, respectively. The Company recognized equity in earnings from long-term investments under the equity method of $1,089 for the three months ended June 30, 2016 and equity in losses from long-term investments under the equity method of $582 for the six months ended June 30, 2016. The Company recognized equity in losses from long-term investments under the equity method of $2,163 and $1,551 for the three and six months ended June 30, 2015, respectively. The Company has suspended its recognition of equity in losses from Castle to the extent such losses exceed its basis. If it is determined that an other-than-temporary decline in fair value exists in long-term investments, the Company records an impairment charge with respect to such investment in its consolidated statements of operations. The Company will continue to perform additional assessments to determine the impact, if any, on the Company’s condensed consolidated financial statements. Thus, future impairment charges may occur. |
New Valley LLC |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Valley LLC | NEW VALLEY LLC Residential Brokerage Business. New Valley is engaged in the real estate business and is seeking to acquire or invest in additional real estate properties or projects. The Company owns a 70.59% interest in Douglas Elliman and the condensed consolidated financial statements of the Company include the account balances of Douglas Elliman. Investments in real estate ventures. New Valley also holds equity investments in various real estate projects domestically and internationally. The components of “Investments in real estate ventures” were as follows:
Condominium and Mixed-Use Development: Condominium and mixed-use development investments range in ownership percentage from 3.1% to 49.5%. New Valley recorded net equity in earnings from real estate ventures of $2,962 and $1,779 for the three and six months ended June 30, 2016 from its condominium and mixed-used developments. For the three months ended June 30, 2016 equity in earnings from real estate related to $3,788 in equity earnings from New Valley's proportionate share of the sale of condominium units at 10 Madison Square Park offset by equity in losses of $826 from the other condominiums and mixed-use development projects. For the six months ended June 30, 2016 equity in earnings from real estate was related to $4,211 in equity earnings from New Valley's proportionate share of the sale of condominium units at 10 Madison Square Park and $34 equity in earnings from other condominiums and mixed-use development projects offset by equity losses of $962 at the Marquand, $160 at 11 Beach Street, $247 at 111 Murray Street, $144 at 215 Chrystie Street, $122 at Queens Plaza, $250 at 87 Park, $177 at West Hollywood Edition, and $404 at Monad Terrace. New Valley recorded equity in earnings from real estate ventures of $138 and $675 for the the three and six months ended June 30, 2015. The Company recorded $1,501 of equity in earnings related to its proportionate share of the Marquand’s equity earnings from the sale of three of its units for the six months ended June 30, 2015. The Company also recorded $236 of equity in earnings from Chelsea Eleven for a distribution of excess amounts held back in 2012 for final expenses of the investment for the six months ended June 30, 2015. During the six months ended June 30, 2016, New Valley made capital contributions totaling $8,801 related to ventures where New Valley previously held an investment, primarily at 20 Times Square, 160 Leroy Street, West Hollywood Edition, and Monad Terrace. For ventures where New Valley previously held an investment, New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners. New Valley's direct investment percentage did not change. During the six months ended June 30, 2015, New Valley made capital contributions totaling $27,091 primarily related to 215 Chrystie Street, 76 Eleventh Avenue and Monad Terrace. New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners. New Valley's investment percentages did not change. During the six months ended June 30, 2016, New Valley received distributions of $19,985 primarily related to 10 Madison Square West, the Marquand, West Hollywood Edition and income from marketing fees paid by 125 Greenwich Street. During the six months ended June 30, 2015, New Valley received distributions of $236 from its investment in Chelsea Eleven, which sold its last unit in 2012, for excess amounts held back in 2012 for final expenses of the investment. New Valley's maximum exposure to loss, net of non-controlling interest, as a result of its investments in condominium and mixed-use developments was $140,667 at June 30, 2016. New Valley capitalized $4,836 of interest expense into the carrying value of its ventures whose projects were currently under development during the six months ended June 30, 2016. Douglas Elliman has been engaged by the developers as the sole broker or the co-broker for several of the real estate development projects that New Valley owns an interest in through its joint venture investments. Douglas Elliman had gross commissions of approximately $5,674 and $8,079 for the three and six months ended June 30, 2016 from these projects. Apartment Buildings: Apartment building investments range in ownership percentage from 7.6% to 16.3%. New Valley recorded equity in earnings from real estate ventures of $1,630 and $2,146 for the three and six months ended June 30, 2016, primarily related to the ST Portfolio apartment portfolio. In 2015, ST Portfolio sold one (Highgrove) of its two remaining Class A multi-family buildings. New Valley recorded equity in earnings from real estate ventures of $1,848 and $1,801 for the three and six months ended June 30, 2015, related to the ST Portfolio. In 2015, ST Portfolio sold one (Phoenix) of its three remaining Class A multi-family buildings. New Valley received distributions of $8,707 during the six months ended June 30, 2016, primarily related to ST Portfolio and Maryland Portfolio. New Valley received distributions of $493 during the six months ended June 30, 2015, primarily related to the Maryland Portfolio. New Valley has suspended its recognition of equity losses in Maryland Portfolio to the extent such losses exceed its basis. New Valley's maximum exposure to loss as a result of its investment in apartment buildings was $9,193 at June 30, 2016. Hotels: Hotel investments range in ownership percentage from 5.2% to 49.0%. New Valley recorded equity in losses from real estate ventures of $189 and $844 for the three and six months ended June 30, 2016, related to hotel operations. New Valley recorded equity in losses from real estate ventures of $261 and $1,006 for the three and six months ended June 30, 2015. New Valley made capital contributions totaling $3,005 for the six months ended June 30, 2016, related to the Park Lane Hotel and Coral Beach and Tennis Club. New Valley made capital contributions totaling $1,980 for the six months ended June 30, 2015, related to the Park Lane Hotel and Coral Beach and Tennis Club. New Valley's maximum exposure to loss as a result of its investments in hotels was $32,086 at June 30, 2016. Commercial: New Valley recorded equity in losses from real estate ventures of $1,744 and $1,532 for the three and six months ended June 30, 2016, related to shopping center rental operations. New Valley recorded equity in earnings from real estate ventures of $27 for the three and six months ended June 30, 2015, related to shopping center rental operations. New Valley received distributions totaling $235 for the six months ended June 30, 2016, related to Harmon Meadow. New Valley's maximum exposure to loss as a result of its investments in commercial ventures was $3,682 at June 30, 2016. Other: Other investments in real estate ventures relate to a 50% investment in an insurance consulting company owned by Douglas Elliman. Investments in Real Estate, net: The components of “Investments in real estate, net” were as follows:
Escena. The assets of “Escena, net” were as follows:
New Valley recorded operating losses of $299 and $173 for the three months ended June 30, 2016 and 2015, respectively, from Escena. New Valley recorded operating income of and $209 and $552 for the six months ended June 30, 2016 and 2015, respectively, from Escena. Investment in Sagaponack. In April 2015, New Valley invested $12,502 in a residential real estate project located in Sagaponack, NY. The project is wholly owned and the balances of the project are included in the condensed consolidated financial statements of the Company. As of June 30, 2016, the assets of Sagaponack consisted of land and land improvements of $12,684. |
Notes Payable, Long Term Debt and Other Obligations |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable, Long-Term Debt and Other Obligations | NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS Notes payable, long-term debt and other obligations consist of:
______________________ * The fair value of the derivatives embedded within the 7.5% Variable Interest Senior Convertible Notes ($61,998 at June 30, 2016 and $72,083 at December 31, 2015, respectively) and the 5.5% Variable Interest Senior Convertible Debentures ($64,934 at June 30, 2016 and $71,959 at December 31, 2015, respectively), is separately classified as a derivative liability in the condensed consolidated balance sheets. 7.75% Senior Secured Notes due 2021 - Vector: On May 9, 2016, the Company completed the sale of an additional $235,000 principal amount of its 7.75% Senior Secured Notes due 2021 for a price of 103.50% in a private offering to qualified institutional investors in accordance with Rule 144A of the Securities Act of 1933 (the "Securities Act"). The Company received net proceeds of approximately $236,900 after deducting underwriting discounts, commissions, fees and offering expenses. The net proceeds will be used for general corporate purposes, including for additional investments in real estate and in the Company's tobacco business. The Company will amortize the deferred costs and debt premium related to the additional Senior Secured Notes over the estimated remaining life of the debt. In August 2016, the Company completed an offer to exchange the 7.75% Senior Secured Notes issued in May 2016 for an equal amount of newly issued 7.75% Senior Secured Notes due 2021. The new 7.75% Senior Secured Notes have substantially the same terms as the original notes, except that the new 7.75% Senior Secured Notes have been registered under the Securities Act. 6.75% Variable Interest Senior Convertible Note due 2015 - Vector: On February 3, 2015, the holder of the 6.75% Variable Interest Senior Convertible Note due 2015, converted the remaining $25,000 principal balance of the $50,000 Note into 2,338,930 of the Company's common shares. The debt conversion resulted in a reduction of debt and an increase to equity in the amount of $25,000. Revolving Credit Facility and Term Loan Under Credit Facility - Liggett: As of June 30, 2016, a total of $15,955 was outstanding under the revolving and term loan portions of the credit facility. Availability, as determined under the facility, was approximately $44,000 based on eligible collateral at June 30, 2016. Shares of Common Stock per $1,000 Principal Amount due on Convertible Notes: The conversion rates for all convertible debt outstanding as of June 30, 2016 and December 31, 2015, are summarized below:
Non-Cash Interest Expense - Vector:
Fair Value of Notes Payable and Long-Term Debt:
______________________ (1) The carrying value does not include the carrying value of the embedded derivative. See Note 11. Notes payable and long-term debt are carried on the condensed consolidated balance sheet at amortized cost. The fair value determinations disclosed above are classified as Level 2 under the fair value hierarchy disclosed in Note 11 if such liabilities were recorded on the condensed consolidated balance sheet at fair value. The estimated fair value of the Company's notes payable and long-term debt has been determined by the Company using available market information and appropriate valuation methodologies including the evaluation of the Company's credit risk as described in the Company's Form 10-K. The Company used the quoted market prices as of June 30, 2016 to determine the fair value of its publicly-traded notes and debentures. The carrying value of the credit facility and term loan is equal to the fair value. The fair value of the equipment loans and other obligations was determined by calculating the present value of the required future cash flows. However, considerable judgment is required to develop the estimates of fair value and, accordingly, the estimate presented herein is not necessarily indicative of the amount that could be realized in a current market exchange. |
Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingencies | CONTINGENCIES Tobacco-Related Litigation: Overview. Since 1954, Liggett and other United States cigarette manufacturers have been named as defendants in numerous direct, third-party and purported class actions predicated on the theory that cigarette manufacturers should be liable for damages alleged to have been caused by cigarette smoking or by exposure to secondary smoke from cigarettes. The cases have generally fallen into the following categories: (i) smoking and health cases alleging personal injury brought on behalf of individual plaintiffs (“Individual Actions”); (ii) lawsuits by individuals requesting the benefit of the Engle ruling (“Engle progeny cases”); (iii) smoking and health cases primarily alleging personal injury or seeking court-supervised programs for ongoing medical monitoring, as well as cases alleging that use of the terms “lights” and/or “ultra lights” constitutes a deceptive and unfair trade practice, common law fraud or violation of federal law, purporting to be brought on behalf of a class of individual plaintiffs (“Class Actions”); and (iv) health care cost recovery actions brought by various foreign and domestic governmental plaintiffs and non-governmental plaintiffs seeking reimbursement for health care expenditures allegedly caused by cigarette smoking and/or disgorgement of profits (“Health Care Cost Recovery Actions”). With the commencement of new cases, the defense costs and the risks relating to the unpredictability of litigation increase. The future financial impact of the risks and expenses of litigation are not quantifiable. For the three months ended June 30, 2016 and 2015, Liggett incurred tobacco product liability legal expenses and costs totaling $1,707 and $3,158, respectively. For the six months ended June 30, 2016 and 2015, Liggett incurred tobacco product liability legal expenses and costs totaling $5,878 and $5,713, respectively. The tobacco product liability legal expenses and costs are included in the operating, selling, administrative and general expenses and litigation settlement and judgment expense line items in the Condensed Consolidated Statements of Operations. Litigation is subject to uncertainty and it is possible that there could be adverse developments in pending cases. Management reviews on a quarterly basis with counsel all pending litigation and evaluates the probability of a loss being incurred and whether an estimate can be made of the possible loss or range of loss that could result from an unfavorable outcome. An unfavorable outcome or settlement of pending tobacco-related litigation could encourage the commencement of additional litigation. Damages awarded in tobacco-related litigation can be significant. Bonds. Although Liggett has been able to obtain required bonds or relief from bonding requirements in order to prevent plaintiffs from seeking to collect judgments while adverse verdicts are on appeal, there remains a risk that such relief may not be obtainable in all cases. This risk has been reduced given that a majority of states now limit the dollar amount of bonds or require no bond at all. To obtain stays on judgments pending current appeals of the Putney, Calloway, Boatright, Buchanan and Ward cases Liggett, as of June 30, 2016, had secured approximately $10,767 in bonds. In June 2009, Florida amended its existing bond cap statute by adding a $200,000 bond cap that applies to all Engle progeny cases in the aggregate and establishes individual bond caps for individual Engle progeny cases in amounts that vary depending on the number of judgments in effect at a given time but in any event, the maximum amount of any such bond for an appeal in the Florida state courts will be no greater than $5,000. In several cases, plaintiffs challenged the constitutionality of the bond cap statute, but to date the courts have upheld the constitutionality of the statute. It is possible that the Company’s consolidated financial position, results of operations, and cash flows could be materially adversely affected by an unfavorable outcome of such challenges. Accounting Policy. The Company and its subsidiaries record provisions in their consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable and the amount of loss can be reasonably estimated. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, except as disclosed in this Note 7: (i) management has concluded that it is not probable that a loss has been incurred in any of the pending tobacco-related cases; or (ii) management is unable to reasonably estimate the possible loss or range of loss that could result from an unfavorable outcome of any of the pending tobacco-related cases and, therefore, management has not provided any amounts in the consolidated financial statements for unfavorable outcomes, if any. Legal defense costs are expensed as incurred. Cautionary Statement About Engle Progeny Cases. Judgments have been entered against Liggett and other industry defendants in more than 100 Engle progeny cases. A number of the judgments have been affirmed on appeal and satisfied by the defendants. As of June 30, 2016, 24 Engle progeny cases where Liggett was a defendant at trial resulted in verdicts. Fifteen verdicts were returned in favor of the plaintiffs (although in two of these cases (Irimi and Cohen) the court granted defendants' motion for a new trial) and nine in favor of Liggett. In four of the cases, punitive damages were awarded against Liggett (although in Calloway, the punitive damages award was reversed and remanded to the trial court). In certain cases, the judgments were entered jointly and severally with other defendants and Liggett may face the risk that one or more co-defendants decline or otherwise fail to participate in the bonding required for an appeal or to pay their proportionate or jury-allocated share of a judgment. As a result, under certain circumstances, Liggett may have to pay more than its proportionate share of any bonding or judgment related amounts. Several of the judgments against Liggett remain on appeal. Except as discussed in this Note 7 regarding the cases where an adverse verdict against Liggett remains on appeal, management is unable to estimate the possible loss or range of loss from the remaining Engle progeny cases as there are currently multiple defendants in each case and, in most cases, discovery has not occurred or is limited. As a result, the Company lacks information about whether plaintiffs are in fact Engle class members (non-class members’ claims are generally time-barred), the relevant smoking history, the nature of the alleged injury and the availability of various defenses, among other things. Further, plaintiffs typically do not specify their demand for damages. Although Liggett has generally been successful in managing litigation, litigation is subject to uncertainty and significant challenges remain, including with respect to the remaining Engle progeny cases. There can be no assurances that Liggett’s past litigation experience will be representative of future results. Judgments have been entered against Liggett in the past, in Individual Actions and Engle progeny cases, and several of those judgments were affirmed on appeal and satisfied by Liggett. It is possible that the consolidated financial position, results of operations and cash flows of the Company could be materially adversely affected by an unfavorable outcome or settlement of any of the remaining smoking-related litigation. Liggett believes, and has been so advised by counsel, that it has valid defenses to the litigation pending against it, as well as valid bases for appeal of adverse verdicts. All such cases are, and will continue to be, vigorously defended, however, Liggett has entered into settlement discussions in individual cases or groups of cases, where Liggett has determined it was in its best interest to do so, and it may continue to do so in the future, including with respect to the remaining Engle progeny cases. In October 2013, Liggett announced a settlement of the claims of over 4,900 Engle progeny plaintiffs (see Engle Progeny Settlement below). As of June 30, 2016, Liggett (and in certain cases the Company) had, on an individual basis, settled 175 Engle progeny cases for approximately $5,999 in the aggregate. One of those settlements occurred in the second quarter of 2016. Individual Actions As of June 30, 2016, there were 38 Individual Actions pending against Liggett and, in certain cases, the Company, where one or more individual plaintiffs allege injury resulting from cigarette smoking, addiction to cigarette smoking or exposure to secondary smoke and seek compensatory and, in some cases, punitive damages. These cases do not include the remaining Engle progeny cases or the individual cases pending in West Virginia state court as part of a consolidated action. The following table lists the number of Individual Actions by state:
The plaintiffs’ allegations of liability in cases in which individuals seek recovery for injuries allegedly caused by cigarette smoking are based on various theories of recovery, including negligence, gross negligence, breach of special duty, strict liability, fraud, concealment, misrepresentation, design defect, failure to warn, breach of express and implied warranties, conspiracy, aiding and abetting, concert of action, unjust enrichment, common law public nuisance, property damage, invasion of privacy, mental anguish, emotional distress, disability, shock, indemnity, violations of deceptive trade practice laws, the federal Racketeer Influenced and Corrupt Organizations Act (“RICO”), state RICO statutes and antitrust statutes. In many of these cases, in addition to compensatory damages, plaintiffs also seek other forms of relief including treble/multiple damages, medical monitoring, disgorgement of profits and punitive damages. Although alleged damages often are not determinable from a complaint, and the law governing the pleading and calculation of damages varies from state to state and jurisdiction to jurisdiction, compensatory and punitive damages have been specifically pleaded in a number of cases, sometimes in amounts ranging into the hundreds of millions and even billions of dollars. Defenses raised in Individual Actions include lack of proximate cause, assumption of the risk, comparative fault and/or contributory negligence, lack of design defect, statute of limitations, equitable defenses such as “unclean hands” and lack of benefit, failure to state a claim and federal preemption. Engle Progeny Cases Engle Case. In May 1994, Engle was filed against Liggett and others in Miami-Dade County, Florida. The class consisted of all Florida residents who, by November 21, 1996, “have suffered, presently suffer or have died from diseases and medical conditions caused by their addiction to cigarette smoking.” In July 1999, after the conclusion of Phase I of the trial, the jury returned a verdict against Liggett and other cigarette manufacturers on certain issues determined by the trial court to be “common” to the causes of action of the plaintiff class. The jury made several findings adverse to the defendants including that defendants’ conduct “rose to a level that would permit a potential award or entitlement to punitive damages.” Phase II of the trial was a causation and damages trial for three of the class plaintiffs and a punitive damages trial on a class-wide basis before the same jury that returned the verdict in Phase I. In April 2000, the jury awarded compensatory damages of $12,704 to the three class plaintiffs, to be reduced in proportion to the respective plaintiff’s fault. In July 2000, the jury awarded approximately $145,000,000 in punitive damages, including $790,000 against Liggett. In May 2003, Florida’s Third District Court of Appeal reversed the trial court and remanded the case with instructions to decertify the class. The judgment in favor of one of the three class plaintiffs, in the amount of $5,831, was overturned as time barred and the court found that Liggett was not liable to the other two class plaintiffs. In July 2006, the Florida Supreme Court affirmed the decision vacating the punitive damages award and held that the class should be decertified prospectively, but determined that the following Phase I findings are entitled to res judicata effect in Engle progeny cases: (i) that smoking causes lung cancer, among other diseases; (ii) that nicotine in cigarettes is addictive; (iii) that defendants placed cigarettes on the market that were defective and unreasonably dangerous; (iv) that defendants concealed material information knowing that the information was false or misleading or failed to disclose a material fact concerning the health effects or addictive nature of smoking; (v) that defendants agreed to conceal or omit information regarding the health effects of cigarettes or their addictive nature with the intention that smokers would rely on the information to their detriment; (vi) that defendants sold or supplied cigarettes that were defective; and (vii) that defendants were negligent. The Florida Supreme Court decision also allowed former class members to proceed to trial on individual liability issues (using the above findings) and compensatory and punitive damage issues, provided they filed their individual lawsuits by January 2008. In December 2006, the Florida Supreme Court added the finding that defendants sold or supplied cigarettes that, at the time of sale or supply, did not conform to the representations made by defendants. In October 2007, the United States Supreme Court denied defendants’ petition for writ of certiorari. Pursuant to the Florida Supreme Court’s July 2006 ruling in Engle, which decertified the class on a prospective basis, and affirmed the appellate court’s reversal of the punitive damages award, former class members had until January 2008 in which to file individual lawsuits. As a result, Liggett and the Company, and other cigarette manufacturers, were sued in thousands of Engle progeny cases in both federal and state courts in Florida. Although the Company was not named as a defendant in the Engle case, it was named as a defendant in substantially all of the Engle progeny cases where Liggett was named as a defendant. Engle Progeny Settlement. In October 2013, the Company entered into a settlement with approximately 4,900 Engle progeny plaintiffs and their counsel. Pursuant to the terms of the settlement, Liggett agreed to pay a total of approximately $110,000, with approximately $61,600 paid in a lump sum and the balance to be paid in installments over 14 years, starting in February 2015. In exchange, the claims of over 4,900 plaintiffs, including the claims of all plaintiffs with cases pending in federal court, were dismissed with prejudice against the Company and Liggett. Due to the settlement, in 2013 the Company recorded a charge of $86,213, of which $25,213 is related to certain payments discounted to their present value using an 11% annual discount rate. The installment payments total approximately $48,000 on an undiscounted basis. The Company’s future payments will be approximately $3,400 per annum through 2028, with a cost of living increase beginning in 2021. Notwithstanding the comprehensive nature of the Engle Progeny Settlement, approximately 245 plaintiffs’ claims remain pending in state court. Therefore, the Company and Liggett may still be subject to periodic adverse judgments which could have a material adverse affect on the Company’s consolidated financial position, results of operations and cash flows. As of June 30, 2016, the following Engle progeny cases have resulted in judgments against Liggett:
Through June 30, 2016, Liggett paid $39,773, including interest and attorneys' fees, to satisfy the judgments in the following Engle progeny cases: Lukacs, Campbell, Douglas, Clay, Tullo, Ward, Rizzuto, Lambert and Buchanan. The Company’s current potential range of loss in the remaining cases on appeal is between $0 and $4,838 in the aggregate, plus interest and attorneys' fees, however, this is only an estimate and final damages in any case might increase as a result of pending appeals. In determining the range of loss, the Company considers potential settlements as well as future appellate relief. Except as disclosed elsewhere in this Note 7, the Company is unable to determine a range of loss related to the remaining Engle progeny cases. As cases proceed through the appellate process, the Company will consider accruals on a case-by-case basis if an unfavorable outcome becomes probable and the amount can be reasonably estimated. Appeals of Engle Progeny Judgments. In December 2010, in the Martin case, a state court case against R.J. Reynolds, the First District Court of Appeal held that the trial court correctly construed the Florida Supreme Court’s 2006 decision in Engle in instructing the jury on the preclusive effect of the Phase I Engle findings. In July 2011, the Florida Supreme Court declined to review the First District Court of Appeal’s decision. In March 2012, the United States Supreme Court declined to review the Martin case, along with the Campbell case and two other Engle progeny cases. The Martin decision has led to additional adverse rulings by other state appellate courts. In Jimmie Lee Brown, a state court case against R.J. Reynolds, the trial court tried the case in two phases. In the first phase, the jury determined that the smoker was addicted to cigarettes that contained nicotine and that his addiction was a legal cause of his death, thereby establishing he was an Engle class member. In the second phase, the jury determined whether the plaintiff established legal cause and damages with regard to each of the underlying claims. The jury found in favor of plaintiff in both phases. In September 2011, the Fourth District Court of Appeal affirmed the judgment entered in plaintiff’s favor and approved the trial court’s procedure of bifurcating the trial. The Fourth District Court of Appeal agreed with Martin that individual post-Engle plaintiffs need not prove conduct elements as part of their burden of proof, but disagreed with Martin to the extent that the First District Court of Appeal only required a finding that the smoker was a class member to establish legal causation as to addiction and the underlying claims. The Fourth District Court of Appeal held that in addition to establishing class membership, Engle progeny plaintiffs must also establish legal causation and damages as to each claim asserted. In so finding, the Fourth District Court of Appeal’s decision in Jimmie Lee Brown is in conflict with Martin. In Rey, a state court case, the trial court entered final summary judgment on all claims in favor of the Company, Liggett and Lorillard based on what has been referred to in the Engle progeny litigation as the “Liggett Rule.” The Liggett Rule stands for the proposition that a manufacturer cannot have liability to a smoker under any asserted claim if the smoker did not use a product manufactured by that particular defendant. The Liggett Rule is based on the entry of final judgment in favor of Liggett/Brooke Group in Engle on all of the claims asserted against them by class representatives Mary Farnan and Angie Della Vecchia, even though the Florida Supreme Court upheld, as res judicata, the generic finding that Liggett/Brooke Group engaged in a conspiracy to commit fraud by concealment. In September 2011, the Third District Court of Appeal affirmed in part and reversed in part holding that the defendants were entitled to summary judgment on all claims asserted against them other than the claim for civil conspiracy. Defendants’ further appellate efforts were unsuccessful. In Douglas, a state court case, the Second District Court of Appeal issued a decision affirming the judgment of the trial court in favor of the plaintiff and upholding the use of the Engle jury findings, but certified to the Florida Supreme Court the question of whether granting res judicata effect to the Engle jury findings violates defendants’ federal due process rights. In March 2013, the Florida Supreme Court affirmed the use of Engle jury findings and determined that there is no violation of the defendants’ due process rights. This was the first time the Florida Supreme Court addressed the merits of an Engle progeny case. In October 2013, the United States Supreme Court declined to review the decision and Liggett satisfied the judgment. To date, the United States Supreme Court has declined to review any Engle progeny decisions. In Hess, a state court case, in April 2015, the Florida Supreme Court held that Engle defendants cannot raise a statute of repose defense to claims for concealment or conspiracy. Defendants' motion for rehearing was denied. In April 2015, in Graham, a federal case, the Eleventh Circuit held that federal law impliedly preempts use of the res judicata Engle findings to establish claims for strict liability or negligence. In February 2016, the Eleventh Circuit Court of Appeals vacated the panel’s opinion and granted Plaintiff’s motion for rehearing en banc. Defendants filed a motion requesting that the court enter a briefing order directing the parties to address both implied preemption and whether the application of the Engle findings violates federal due process. That motion was granted. Oral argument occurred in June 2016 and a decision is pending. Maryland Cases Liggett is currently a defendant in 13 multi-defendant personal injury cases in Maryland that allege claims arising from asbestos and tobacco exposure. Liggett along with other tobacco defendants have moved (or are in the process of moving) to dismiss the cases. In the past, motions to dismiss have generally been successful, typically resulting in the dismissal without prejudice of the tobacco company defendants, including Liggett. Recently, however, a Maryland intermediate appellate court ruled, in Stidham, et al. v. R. J. Reynolds Tobacco Company, et al., that dismissal of tobacco company defendants may not be appropriate where injury is asserted based on both asbestos and tobacco usage. On May 9, 2016, the Court of Appeals for Maryland (Maryland's highest court) heard oral argument on the appeal of the intermediate appellate court's decision. On July 5, 2016, the Court of Appeals ruled that joinder of tobacco and asbestos cases may be possible in certain circumstances, but plaintiffs must demonstrate at the trial court level how such cases may be joined while providing appropriate safeguards to prevent embarrassment, delay, expense or prejudice to defendants and "the extent to which, if at all, the special procedures applicable to asbestos cases should extend to tobacco companies." Other than providing guidance, the Court of Appeals remanded these issues to be determined at the trial court level. It is possible that Liggett and other tobacco company defendants will not be dismissed from pending synergy exposure cases, and may be named as defendants in asbestos-related personal injury actions in Maryland going forward, including approximately 20 additional synergy exposure cases currently pending in Maryland state court. Liggett Only Cases There are currently three cases pending where Liggett is the only remaining defendant. Each of these cases is an Individual Action. In November 2015, in Hausrath (NY state court), the court entered a case management order providing discovery deadlines. A status conference is scheduled for August 2, 2016. There has been no further activity in the other two Individual Actions. Cases where Liggett is the only defendant could increase as a result of the remaining Engle progeny cases. Class Actions As of June 30, 2016, three actions were pending for which either a class had been certified or plaintiffs were seeking class certification where Liggett is a named defendant. Other cigarette manufacturers are also named in these actions. Plaintiffs’ allegations of liability in class action cases are based on various theories of recovery, including negligence, gross negligence, strict liability, fraud, misrepresentation, design defect, failure to warn, nuisance, breach of express and implied warranties, breach of special duty, conspiracy, concert of action, violation of deceptive trade practice laws and consumer protection statutes and claims under the federal and state anti-racketeering statutes. Plaintiffs in the class actions seek various forms of relief, including compensatory and punitive damages, treble/multiple damages and other statutory damages and penalties, creation of medical monitoring and smoking cessation funds, disgorgement of profits, and injunctive and equitable relief. Defenses raised in these cases include, among others, lack of proximate cause, individual issues predominate, assumption of the risk, comparative fault and/or contributory negligence, statute of limitations and federal preemption. In November 1997, in Young v. American Tobacco Co., a purported personal injury class action was commenced on behalf of plaintiff and all similarly situated residents in Louisiana who, though not themselves cigarette smokers, allege they were exposed to secondhand smoke from cigarettes that were manufactured by the defendants, including Liggett, and suffered injury as a result of that exposure. The plaintiffs seek to recover an unspecified amount of compensatory and punitive damages. No class certification hearing has been held. In 2013, plaintiffs’ filed a motion to stay the case and that motion was granted. In February 1998, in Parsons v. AC & S Inc., a purported class action was commenced on behalf of all West Virginia residents who allegedly have personal injury claims arising from exposure to cigarette smoke and asbestos fibers. The complaint seeks to recover $1,000 in compensatory and punitive damages individually and unspecified compensatory and punitive damages for the class. The case is stayed due to the December 2000 bankruptcy of three of the defendants. Although not technically a class action, in In Re: Tobacco Litigation (Personal Injury Cases), a West Virginia state court consolidated approximately 750 individual smoker actions that were pending prior to 2001 for trial of certain "common" issues. Liggett was severed from trial of the consolidated action. After two mistrials, in May 2013, the jury rejected all but one of the plaintiffs' claims, finding in favor of plaintiffs on the claim that ventilated filter cigarettes between 1964 and July 1, 1969 should have included instructions on how to use them. The issue of damages was reserved for further proceedings. The court entered judgment in October 2013, dismissing all claims except the ventilated filter claim. The judgment was affirmed on appeal and remanded to the trial court for further proceedings. In April 2015, the plaintiffs filed a petition for writ of certiorari to the United States Supreme Court which subsequently declined review. In July 2015, the trial court ruled on the scope of the ventilated filter claim and determined that only 30 plaintiffs have potentially viable claims against the non-Liggett defendants, which may be pursued in a second phase of the trial. The court intends to try the claims of these plaintiffs in six consolidated trials, each with five plaintiffs. The trial court set the first date for the consolidated trials for January 9, 2017. With respect to Liggett, the trial court requested that Liggett and plaintiffs brief whether any claims against Liggett survive given the outcome of the first phase of the trial. On May 23, 2016, the trial court ruled that the case may proceed against Liggett. Liggett intends to seek appellate review of this decision. It is estimated that Liggett could be a defendant in approximately 25 of the remaining individual cases. In addition to the cases described above, numerous class actions remain certified against other cigarette manufacturers including cases alleging, among other things, that use of the terms “lights” and “ultra lights” constitutes unfair and deceptive trade practices. Adverse decisions in these cases could have a material adverse affect on Liggett’s sales volume, operating income and cash flows. Health Care Cost Recovery Actions As of June 30, 2016, one Health Care Cost Recovery Action was pending against Liggett, Crow Creek Sioux Tribe v. American Tobacco Company, a South Dakota case filed in 1997, where the plaintiff seeks to recover damages based on various theories of recovery as a result of alleged sales of tobacco products to minors. The case is inactive. Other cigarette manufacturers are also named as defendants. The claims asserted in health care cost recovery actions vary, but can include the equitable claim of indemnity, common law claims of negligence, strict liability, breach of express and implied warranty, breach of special duty, fraud, negligent misrepresentation, conspiracy, public nuisance, claims under state and federal statutes governing consumer fraud, antitrust, deceptive trade practices and false advertising, and claims under RICO. Although no specific damage amounts are typically pleaded, it is possible that requested damages might be in the billions of dollars. In these cases, plaintiffs typically assert equitable claims that the tobacco industry was “unjustly enriched” by their payment of health care costs allegedly attributable to smoking and seek reimbursement of those costs. Relief sought by some, but not all, plaintiffs include punitive damages, multiple damages and other statutory damages and penalties, injunctions prohibiting alleged marketing and sales to minors, disclosure of research, disgorgement of profits, funding of anti-smoking programs, additional disclosure of nicotine yields, and payment of attorney and expert witness fees. Department of Justice Lawsuit In September 1999, the United States government commenced litigation against Liggett and other cigarette manufacturers in the United States District Court for the District of Columbia. The action sought to recover an unspecified amount of health care costs paid and to be paid by the federal government for lung cancer, heart disease, emphysema and other smoking-related illnesses allegedly caused by the fraudulent and tortious conduct of defendants, to restrain defendants and co-conspirators from engaging in alleged fraud and other allegedly unlawful conduct in the future, and to compel defendants to disgorge the proceeds of their unlawful conduct. Claims were asserted under RICO. In August 2006, the trial court entered a Final Judgment against each of the cigarette manufacturing defendants, except Liggett. In May 2009, the United States Court of Appeals for the District of Columbia affirmed most of the district court’s decision. The United States Supreme Court denied review. As a result, the cigarette manufacturing defendants, other than Liggett, are now subject to the trial court’s Final Judgment which ordered the following relief: (i) an injunction against “committing any act of racketeering” relating to the manufacturing, marketing, promotion, health consequences or sale of cigarettes in the United States; (ii) an injunction against participating directly or indirectly in the management or control of the Council for Tobacco Research, the Tobacco Institute, or the Center for Indoor Air Research, or any successor or affiliated entities of each; (iii) an injunction against “making, or causing to be made in any way, any material false, misleading, or deceptive statement or representation or engaging in any public relations or marketing endeavor that is disseminated to the United States’ public and that misrepresents or suppresses information concerning cigarettes”; (iv) an injunction against conveying any express or implied health message through use of descriptors on cigarette packaging or in cigarette advertising or promotional material, including “lights,” “ultra lights,” and “low tar,” which the court found could cause consumers to believe one cigarette brand is less hazardous than another brand; (v) the issuance of “corrective statements” in various media regarding the adverse health effects of smoking, the addictiveness of smoking and nicotine, the lack of any significant health benefit from smoking “low tar” or “lights” cigarettes, defendants’ manipulation of cigarette design to ensure optimum nicotine delivery and the adverse health effects of exposure to environmental tobacco smoke; (vi) the disclosure of defendants’ public document websites and the production of all documents produced to the government or produced in any future court or administrative action concerning smoking and health; (vii) the disclosure of disaggregated marketing data to the government in the same form and on the same schedules as defendants now follow in disclosing such data to the Federal Trade Commission for a period of ten years; (viii) certain restrictions on the sale or transfer by defendants of any cigarette brands, brand names, formulas or cigarette business within the United States; and (ix) payment of the government’s costs in bringing the action. In June 2014, the court approved a consent agreement between the defendants and the Department of Justice regarding the “corrective statements” to be issued by the defendants. In May 2015, the court of appeals issued an opinion on the legality of the "corrective statements," affirming them in part and reversing them in part. The implementation of the “corrective statements” is uncertain as proceedings are ongoing. It is unclear what impact, if any, the Final Judgment will have on the cigarette industry as a whole. To the extent that the Final Judgment leads to a decline in industry-wide shipments of cigarettes in the United States or otherwise results in restrictions that adversely affect the industry, Liggett’s sales volume, operating income and cash flows could be materially adversely affected. Upcoming Trials As of June 30, 2016, there were 16 Engle progeny cases and two Individual Actions scheduled for trial through June 30, 2017, where Liggett (and/or the Company) is a named defendant. Trial dates are, however, subject to change. MSA and Other State Settlement Agreements In March 1996, March 1997 and March 1998, Liggett entered into settlements of smoking-related litigation with 45 states and territories. The settlements released Liggett from all smoking-related claims made by those states and territories, including claims for health care cost reimbursement and claims concerning sales of cigarettes to minors. In November 1998, Philip Morris, R.J. Reynolds and two other companies (the “Original Participating Manufacturers” or “OPMs”) and Liggett and Vector Tobacco (together with any other tobacco product manufacturer that becomes a signatory, the “Subsequent Participating Manufacturers” or “SPMs”) (the OPMs and SPMs are hereinafter referred to jointly as the “Participating Manufacturers”) entered into the Master Settlement Agreement (the “MSA”) with 46 states, the District of Columbia, Puerto Rico, Guam, the United States Virgin Islands, American Samoa and the Northern Mariana Islands (collectively, the “Settling States”) to settle the asserted and unasserted health care cost recovery and certain other claims of the Settling States. The MSA received final judicial approval in each Settling State. As a result of the MSA, the Settling States released Liggett and Vector Tobacco from:
The MSA restricts tobacco product advertising and marketing within the Settling States and otherwise restricts the activities of Participating Manufacturers. Among other things, the MSA prohibits the targeting of youth in the advertising, promotion or marketing of tobacco products; bans the use of cartoon characters in all tobacco advertising and promotion; limits each Participating Manufacturer to one tobacco brand name sponsorship during any 12-month period; bans all outdoor advertising, with certain limited exceptions; prohibits payments for tobacco product placement in various media; bans gift offers based on the purchase of tobacco products without sufficient proof that the intended recipient is an adult; prohibits Participating Manufacturers from licensing third parties to advertise tobacco brand names in any manner prohibited under the MSA; and prohibits Participating Manufacturers from using as a tobacco product brand name any nationally recognized non-tobacco brand or trade name or the names of sports teams, entertainment groups or individual celebrities. The MSA also requires Participating Manufacturers to affirm corporate principles to comply with the MSA and to reduce underage use of tobacco products and imposes restrictions on lobbying activities conducted on behalf of Participating Manufacturers. In addition, the MSA provides for the appointment of an independent auditor to calculate and determine the amounts of payments owed pursuant to the MSA. Under the payment provisions of the MSA, the Participating Manufacturers are required to make annual payments of $9,000,000 (subject to applicable adjustments, offsets and reductions including a "Non-Participating Manufacturers Adjustment" or "NPM Adjustment"). These annual payments are allocated based on unit volume of domestic cigarette shipments. The payment obligations under the MSA are the several, and not joint, obligation of each Participating Manufacturer and are not the responsibility of any parent or affiliate of a Participating Manufacturer. Liggett has no payment obligations under the MSA except to the extent its market share exceeds a market share exemption of approximately 1.65% of total cigarettes sold in the United States. Vector Tobacco has no payment obligations under the MSA except to the extent its market share exceeds a market share exemption of approximately 0.28% of total cigarettes sold in the United States. Liggett and Vector Tobacco’s domestic shipments accounted for 3.3% of the total cigarettes sold in the United States in 2015. If Liggett’s or Vector Tobacco’s market share exceeds their respective market share exemption in a given year, then on April 15 of the following year, Liggett and/or Vector Tobacco, as the case may be, must pay on each excess unit an amount equal (on a per-unit basis) to that due from the OPMs for that year. On December 30, 2015, Liggett and Vector Tobacco pre-paid $100,000 of their approximate $115,000 2015 MSA obligation, the balance of which was paid in April 2016. Certain MSA Disputes NPM Adjustment. Liggett and Vector Tobacco contend that they are entitled to an NPM Adjustment for each year from 2003 - 2015. The NPM Adjustment is a potential adjustment to annual MSA payments, available when the Participating Manufacturers suffer a market share loss to NPMs for a particular year and an economic consulting firm selected pursuant to the MSA determines that the MSA was a “significant factor contributing to” that loss. A Settling State that has “diligently enforced” its qualifying escrow statute in the year in question may be able to avoid its allocable share of the NPM Adjustment. For 2003 - 2015, Liggett and Vector Tobacco, as applicable, disputed that they owed the Settling States the NPM Adjustments as calculated by the Independent Auditor. As permitted by the MSA, Liggett and Vector Tobacco either paid subject to dispute, withheld payment or paid into a disputed payment account, the amounts associated with these NPM Adjustments. The two requirements for application of the NPM Adjustment, a market share loss and a finding or agreement that the MSA was a significant factor in that loss, have been satisfied, and the Participating Manufacturers are engaged in disputes with certain of the Settling States over whether they diligently enforced their respective escrow statutes in each of the years from 2003 - 2014. After several years of litigation over whether the MSA’s arbitration clause required a multistate arbitration of the NPM Adjustment dispute, 48 of 49 state courts ultimately compelled the states to participate in a single, multistate arbitration of the 2003 NPM Adjustment. Notwithstanding, many states continued to refuse to arbitrate and agreed to do so only after the Participating Manufacturers agreed to a 20% reduction in their 2003 NPM Adjustment claims. The arbitration for the 2003 NPM Adjustment began in June 2010. During the proceedings, the Participating Manufacturers decided not to contest the diligent enforcement of 16 states, with a combined allocable share of approximately 14%. While the 2003 arbitration was underway, the Participating Manufacturers entered into a term sheet with 22 states settling the NPM Adjustment for 2003 - 2012 and agreeing to terms to address the NPM Adjustment with respect to those states for future years. The parties have been working towards converting the term sheet into a final settlement agreement. The Participating Manufacturers continued to contest the diligence of 15 states relating to the 2003 NPM Adjustment. In September 2013, the panel found that six of those states did not diligently enforce their MSA escrow statutes in 2003. Two of the states found non-diligent, Kentucky and Indiana, agreed to settle the dispute and enter into the term sheet described above. The remaining four non-diligent states pursued motions in their respective state courts seeking to vacate or reduce the amount of the arbitration award. The Pennsylvania and Maryland courts refused to vacate the award but reduced the recovery by approximately 50%. State court appellate proceedings in Pennsylvania and Maryland are now exhausted but the Participating Manufacturers have filed petitions for certiorari seeking further review in the United States Supreme Court. The remaining two challenges to the 2003 arbitration award, in Missouri and New Mexico, remain pending in state court. In Missouri, the appellate court reversed the trial court, which had reduced the arbitration award, and reinstated the full award. The Missouri Supreme Court granted a discretionary appeal of that decision, and briefing is currently underway. There has been no decision in New Mexico. In October 2015, substantially all of the Participating Manufacturers settled the NPM Adjustment dispute with the state of New York for 2004 - 2014 and agreed to a mechanism for potential future credits against the Participating Manufacturers' MSA payments for 2015 forward. As a result of the settlements and arbitration award described above, Liggett and Vector Tobacco reduced cost of sales in the aggregate by $22,356 for years 2013 - 2015. Liggett and Vector Tobacco maybe entitled to further adjustments for 2015 forward. The remaining NPM Adjustment accrual of approximately $20,000 at June 30, 2016 relates to the disputed amounts Liggett withheld from the non-settling states for 2004 - 2010, which may be subject to payment, with interest, if Liggett loses the disputes for those years. As of June 30, 2016, there remains approximately $28,600 in the disputed payments account relating to Liggett's 2011 - 2015 NPM Adjustment disputes with the non-settling states. Disputes over the NPM Adjustments for 2004-2014 remain to be arbitrated with the states that have not joined the settlement. The dispute over the NPM Adjustment for 2015 remains to be arbitrated with all the states. The arbitration panel for the 2004 NPM Adjustment dispute has been selected and that proceeding has commenced. “Gross” v. “Net” Calculations. In October 2004, the independent auditor notified all Participating Manufacturers that their payment obligations under the MSA, dating from the agreement’s execution in late 1998, had been recalculated using “net” units, rather than “gross” units (which had been used since 1999). Liggett objected to this retroactive change and disputed the change in methodology. In December 2012, the parties arbitrated the dispute. In February 2013, the arbitrators ruled that the independent auditor was precluded from recalculating Liggett’s grandfathered market share (“GFMS”) exemption. The arbitrators further ruled that, for purposes of calculating Liggett’s payment obligations, Liggett’s market share, calculated on a net basis, should be increased by a factor of 1.25%. Liggett filed a motion seeking correction of the part of the arbitrators’ decision that would require the 1.25% increase in Liggett’s market share. The states opposed Liggett’s motion. In October 2014, the panel issued a Corrected Final Award that eliminated the 1.25% adjustment increase. The panel further determined that the independent auditor shall compute Liggett’s market share for all years after 2000 on a “net” basis, but adjust that computation to approximate “gross” market share by using actual returned product data for each year. In July 2015, the independent auditor issued calculations, purportedly based on the Corrected Final Award, which indicated that Liggett owed approximately $16,000 for years 2001 - 2013. In June 2016, the independent auditor issued revised calculations indicating that Liggett owed approximately $8,100 for years 2001 - 2013. Based on these revised calculations Liggett is fully accrued for this matter although Liggett continues to dispute the independent auditor’s calculation. Other State Settlements. The MSA replaced Liggett’s prior settlements with all states and territories except for Florida, Mississippi, Texas and Minnesota. Each of these four states, prior to the effective date of the MSA, negotiated and executed settlement agreements with each of the other major tobacco companies, separate from those settlements reached previously with Liggett. Except as described below, Liggett’s agreements with these states remain in full force and effect. These states’ settlement agreements with Liggett contained most favored nation provisions which could reduce Liggett’s payment obligations based on subsequent settlements or resolutions by those states with certain other tobacco companies. Beginning in 1999, Liggett determined that, based on settlements with United States Tobacco Company, Liggett’s payment obligations to those four states were eliminated. With respect to all non-economic obligations under the previous settlements, Liggett believes it is entitled to the most favorable provisions as between the MSA and each state’s respective settlement with the other major tobacco companies. Therefore, Liggett’s non-economic obligations to all states and territories are now defined by the MSA. In 2003, as a result of a dispute with Minnesota regarding its settlement agreement, Liggett agreed to pay $100 a year in any year cigarettes manufactured by Liggett are sold in that state. The Attorneys General for Florida, Mississippi and Texas previously advised Liggett that they believed that Liggett had failed to make payments under the respective settlement agreements with those states. In 2010, Liggett settled with Florida and agreed to pay $1,200 and to make further annual payments of $250 for a period of 21 years, starting in March 2011, with the payments from year 12 forward being subject to an inflation adjustment. These payments are in lieu of any other payments allegedly due to Florida. On January 12, 2016, the Attorney General for Mississippi commenced an action against Liggett in state court in Jackson County, Mississippi (Chancery Division) to enforce the settlement agreement among Liggett, Mississippi and several other states, alleging that Liggett is liable to Mississippi for at least $26,000 (including interest) plus attorneys' fees and punitive damages. Discovery is underway. Liggett may be required to make additional payments to Texas or Mississippi which could adversely affect the Company’s consolidated financial position, results of operations and cash flows. Cautionary Statement Management is not able to reasonably predict the outcome of the litigation pending or threatened against Liggett or the Company. Litigation is subject to many uncertainties. Liggett has been found liable in multiple Engle progeny cases and Individual Actions, several of which were affirmed on appeal and satisfied by Liggett. It is possible that other cases could be decided unfavorably against Liggett and that Liggett will be unsuccessful on appeal. Liggett may attempt to settle particular cases if it believes it is in its best interest to do so. Management cannot predict the cash requirements related to any future defense costs, settlements or judgments, including cash required to bond any appeals, and there is a risk that those requirements will not be able to be met. An unfavorable outcome of a pending smoking-related case could encourage the commencement of additional litigation. Except as discussed in this Note 7, management is unable to estimate the loss or range of loss that could result from an unfavorable outcome of the cases pending against Liggett or the costs of defending such cases and as a result has not provided any amounts in its consolidated financial statements for unfavorable outcomes. The tobacco industry is subject to a wide range of laws and regulations regarding the marketing, sale, taxation and use of tobacco products imposed by local, state and federal governments. There have been a number of restrictive regulatory actions, adverse legislative and political decisions and other unfavorable developments concerning cigarette smoking and the tobacco industry. These developments may negatively affect the perception of potential triers of fact with respect to the tobacco industry, possibly to the detriment of certain pending litigation, and may prompt the commencement of additional litigation or legislation. It is possible that the Company’s consolidated financial position, results of operations and cash flows could be materially adversely affected by an unfavorable outcome in any of the smoking-related litigation. The activity in the Company's accruals for the MSA and tobacco litigation for the six months ended June 30, 2016 were as follows:
The activity in the Company's accruals for the MSA and tobacco litigation for the six months ended June 30, 2015 were as follows:
Other Matters: Liggett’s and Vector Tobacco’s management are unaware of any material environmental conditions affecting their existing facilities. Liggett’s and Vector Tobacco’s management believe that current operations are conducted in material compliance with all environmental laws and regulations and other laws and regulations governing cigarette manufacturers. Compliance with federal, state and local provisions regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, has not had a material affect on the capital expenditures, results of operations or competitive position of Liggett or Vector Tobacco. Liggett Vector Brands entered into an agreement with a subsidiary of the Convenience Distribution Association to support a program to permit certain tobacco distributors to secure, on reasonable terms, tax stamp bonds required by state and local governments for the distribution of cigarettes. Under the agreement, Liggett Vector Brands has agreed to pay a portion of losses incurred by the surety under the bond program, with a maximum loss exposure of $500. The Company believes the fair value of Liggett Vector Brands’ obligation under the agreement was immaterial at June 30, 2016. In addition to the foregoing, Douglas Elliman Realty, LLC is subject to numerous proceedings, lawsuits and claims in connection with its ordinary business activities. Many of these matters are covered by insurance. Liggett was contacted in October 2015, by one of its software vendors, who suggested that Liggett needed to purchase additional software licenses from it. Liggett believes that its use of the vendor's software is in compliance with the licenses previously purchased by Liggett. In January 2016, the software vendor requested to audit Liggett’s use of the relevant software. In response, Liggett has provided details of its use of the software and is continuing to cooperate with requests for information. Management is of the opinion that the liabilities, if any, resulting from other proceedings, lawsuits and claims pending against the Company and its consolidated subsidiaries, unrelated to tobacco product liability, should not materially affect the Company’s condensed consolidated financial position, results of operations or cash flows. |
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Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The following table summarizes key information related to the Company's pension plans and other postretirement benefits:
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Restructuring | RESTRUCTURING The following table presents the activity under the Tobacco segment restructuring plan for the six months ended June 30, 2016:
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Income Taxes |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES The Company's provision for income taxes in interim periods is based on an estimated annual effective income tax rate derived, in part, from estimated annual pre-tax results from ordinary operations. The annual effective income tax rate is reviewed and, if necessary, adjusted on a quarterly basis. The Company's income tax expense consisted of the following:
The discrete item for the six months ended June 30, 2016 is primarily related to the results of recent state income tax audits. The discrete item for the six months ended June 30, 2015 is primarily related to the rate differential in other comprehensive income and the results of a recent state income tax audit. |
Investments and Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments and Fair Value Measurements | INVESTMENTS AND FAIR VALUE MEASUREMENTS The Company's recurring financial assets and liabilities subject to fair value measurements were as follows:
The fair value of the Level 2 certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is the rate offered by the financial institution. The fair value of investment securities available for sale included in Level 1 are based on quoted market prices from various stock exchanges. The Level 2 investment securities available for sale are based on quoted market prices of securities that are thinly traded. The fair value of derivatives embedded within convertible debt was derived using a valuation model. These derivatives have been classified as Level 3. The valuation model assumes future dividend payments by the Company and utilizes interest rates and credit spreads based upon the implied credit spread of the 5.50% Convertible Notes due 2020 to determine the fair value of the derivatives embedded within the convertible debt. The changes in fair value of derivatives embedded within convertible debt are presented on the consolidated statements of operations. The value of the embedded derivatives is contingent on changes in implied interest rates of the convertible debt, the Company's stock price, stock volatility as well as projections of future cash and stock dividends over the term of the debt. The interest rate component of the value of the embedded derivative is computed by calculating an equivalent non-convertible, unsecured and subordinated borrowing cost. This rate is determined by calculating the implied rate on the Company's 2020 Convertible Notes when removing the embedded option value within the convertible security. This rate is based upon market observable inputs and influenced by the Company's stock price, convertible bond trading price, risk free interest rates and stock volatility. The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at June 30, 2016:
The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2015:
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Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION The Company's significant business segments for the three and six months ended June 30, 2016 and 2015 were Tobacco, E-Cigarettes and Real Estate. The Tobacco segment consists of the manufacture and sale of conventional cigarettes. The E-Cigarettes segment includes the operations of the Company's e-cigarette business. The Real Estate segment includes the Company’s investment in New Valley LLC, which includes Douglas Elliman, Escena, Sagaponack and investments in real estate ventures. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Financial information for the Company’s operations before taxes and non-controlling interests for the three and six months ended June 30, 2016 and 2015 were as follows:
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Condensed Consolidating Financial Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION The accompanying condensed consolidating financial information has been prepared and presented pursuant to Securities and Exchange Commission (“SEC”) Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Affiliates Whose Securities Collateralize an Issue Registered or Being Registered.” Each of the subsidiary guarantors is 100% owned, directly or indirectly, by the Company, and all guarantees are full and unconditional and joint and several. The Company’s investments in its consolidated subsidiaries are presented under the equity method of accounting. The Company has outstanding $835,000 principal amount of its 7.75% Senior Secured Notes due 2021 that are guaranteed subject to certain customary automatic release provisions on a joint and several basis by all of the 100% owned domestic subsidiaries of the Company that are engaged in the conduct of its cigarette businesses. (See Note 6). The notes are not guaranteed by any of the Company’s subsidiaries engaged in the real estate businesses conducted through its subsidiary New Valley. Presented herein are Condensed Consolidating Balance Sheets as of June 30, 2016 and December 31, 2015, the related Condensed Consolidating Statements of Operations for the three and six months ended June 30, 2016 and the related Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2016 and 2015 of Vector Group. (Parent/Issuer), the guarantor subsidiaries (Subsidiary Guarantors) and the subsidiaries that are not guarantors (Subsidiary Non-Guarantors). The indenture contains covenants that restrict the payment of dividends by the Company if the Company’s consolidated earnings before interest, taxes, depreciation and amortization (“Consolidated EBITDA”), as defined in the indenture, for the most recently ended four full quarters is less than $75,000. The indenture also restricts the incurrence of debt if the Company’s Leverage Ratio and its Secured Leverage Ratio, as defined in the indenture, exceed 3.0 and 1.5, respectively. The Company’s Leverage Ratio is defined in the indenture as the ratio of the Company’s and the guaranteeing subsidiaries’ total debt less the fair market value of the Company’s cash, investments in marketable securities and long-term investments to Consolidated EBITDA, as defined in the indenture. The Company’s Secured Leverage Ratio is defined in the indenture in the same manner as the Leverage Ratio, except that secured indebtedness is substituted for indebtedness. CONDENSED CONSOLIDATING BALANCE SHEETS
CONDENSED CONSOLIDATING BALANCE SHEETS
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended | |
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Jun. 30, 2016 |
Jun. 30, 2015 |
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Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation: The condensed consolidated financial statements of Vector Group Ltd. (the “Company” or “Vector”) include the accounts of VGR Holding LLC (“VGR Holding”), Liggett Group LLC (“Liggett”), Vector Tobacco Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), Zoom E-Cigs LLC (“Zoom”), New Valley LLC (“New Valley”) and other less significant subsidiaries. New Valley includes the accounts of Douglas Elliman Realty, LLC (“Douglas Elliman”) and other less significant subsidiaries. All intercompany balances and transactions have been eliminated. Liggett and Vector Tobacco are engaged in the manufacture and sale of cigarettes in the United States. Zoom is engaged in the sale of electronic cigarettes in the United States. New Valley is engaged in the real estate business. |
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Basis of Accounting | The unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and, in management's opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair statement of the results for the periods presented. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission. The consolidated results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the entire year. |
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Adoption of Equity Method | Adoption of Equity Method. The Company adopted the equity method of accounting for its investments in Ladenburg Thalmann Financial Services Inc. (“LTS”) and Castle Brands Inc. (“Castle”) in 2015 because the Company determined that it had significant influence due to the evolution of the relationships with each company. In accordance with ASC 323-35-33, the Company has adjusted its condensed consolidated financial statements, retrospectively, on a step-by-step basis as if the equity method had been in effect since inception. |
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Distributions and Dividends on Common Stock | Distributions and Dividends on Common Stock: The Company records distributions on its common stock as dividends in its condensed consolidated statement of stockholders' deficiency to the extent of retained earnings and accumulated paid-in capital. Any amounts exceeding retained earnings are recorded as a reduction to additional paid-in capital to the extent paid-in-capital is available. The Company’s stock dividends are recorded as stock splits and given retroactive effect to earnings per share for all periods presented. |
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Revenue Recognition | Revenue Recognition: Tobacco and E-Cigarettes sales: Revenues from sales are recognized upon the shipment of finished goods when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sale price is fixed or determinable and collectibility is reasonably assured. The Company provides an allowance for expected sales returns, net of any related inventory cost recoveries (e.g. federal excise taxes). Certain sales incentives, including promotional price discounts, are classified as reductions of net sales. The Company includes federal excise taxes on tobacco sales in revenues and cost of goods sold. Since the Company’s primary line of business is tobacco, the Company’s financial position and its results of operations and cash flows have been and could continue to be materially adversely affected by significant unit sales volume declines at the Company and industry levels, regulation, litigation and defense costs, increased tobacco costs or reductions in the selling price of cigarettes in the near term. Real estate sales: Revenue is recognized only when persuasive evidence of an arrangement exists, the price is fixed or determinable, the transaction has been completed and collectibility of the resulting receivable is reasonably assured. Real estate commissions earned by the Company’s real estate brokerage businesses are recorded as revenue on a gross basis upon the closing of a real estate transaction as evidenced when the escrow or similar account is closed, the transaction documents have been recorded and funds are distributed to all appropriate parties. Commission expenses are recognized concurrently with related revenues. Property management fees and rental commissions earned are recorded as revenue when the related services are performed and the earnings process is complete. |
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Revenue Recognition, Tobacco and E-Cigarettes sales | Tobacco and E-Cigarettes sales: Revenues from sales are recognized upon the shipment of finished goods when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sale price is fixed or determinable and collectibility is reasonably assured. The Company provides an allowance for expected sales returns, net of any related inventory cost recoveries (e.g. federal excise taxes). Certain sales incentives, including promotional price discounts, are classified as reductions of net sales. The Company includes federal excise taxes on tobacco sales in revenues and cost of goods sold. Since the Company’s primary line of business is tobacco, the Company’s financial position and its results of operations and cash flows have been and could continue to be materially adversely affected by significant unit sales volume declines at the Company and industry levels, regulation, litigation and defense costs, increased tobacco costs or reductions in the selling price of cigarettes in the near term. |
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Revenue Recognition, Real estate sales | Real estate sales: Revenue is recognized only when persuasive evidence of an arrangement exists, the price is fixed or determinable, the transaction has been completed and collectibility of the resulting receivable is reasonably assured. Real estate commissions earned by the Company’s real estate brokerage businesses are recorded as revenue on a gross basis upon the closing of a real estate transaction as evidenced when the escrow or similar account is closed, the transaction documents have been recorded and funds are distributed to all appropriate parties. Commission expenses are recognized concurrently with related revenues. Property management fees and rental commissions earned are recorded as revenue when the related services are performed and the earnings process is complete. |
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Earnings Per Share (“EPS”) | Earnings Per Share (“EPS”): Information concerning the Company's common stock has been adjusted to give retroactive effect to the 5% stock dividend paid to Company stockholders on September 29, 2015. All per share amounts and references to share amounts have been updated to reflect the retrospective effect of the stock dividends. |
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Fair Value of Derivatives Embedded within Convertible Debt | Fair Value of Derivatives Embedded within Convertible Debt: The Company has estimated the fair value of the embedded derivatives based principally on the results of a valuation model. A readily determinable fair value of the embedded derivatives is not available. The estimated fair value of the derivatives embedded within the convertible debt is based principally on the present value of future dividend payments expected to be received by the convertible debt holders over the term of the debt. The discount rate applied to the future cash flows is estimated based on a spread in the yield of the Company's debt when compared to risk-free securities with the same duration. The valuation model assumes future dividend payments by the Company and utilizes interest rates and credit spreads for secured to unsecured debt, unsecured to subordinated debt and subordinated debt to preferred stock to determine the fair value of the derivatives embedded within the convertible debt. At June 30, 2016, the range of estimated fair values of the Company's embedded derivatives was between $125,983 and $127,870. The Company recorded the fair value of its embedded derivatives at the approximate midpoint of the range at $126,932 as of June 30, 2016. At December 31, 2015, the range of estimated fair values of the Company's embedded derivatives was between $143,422 and $144,660. The Company recorded the fair value of its embedded derivatives at the midpoint of the range at $144,042 as of December 31, 2015. The estimated fair value of the Company's embedded derivatives could change significantly based on future market conditions. (See Note 6.) |
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Investment in Real Estate Ventures | Investment in Real Estate Ventures: The Company's investment in real estate ventures are subject to evaluation under ASU No. 2015-02, “Consolidation” (“ASU 2015-02”) which requires all legal entities to be evaluated as either a voting interest entity or a Variable Interest Entities (“VIE”). The guidance is effective for financial statements of public companies issued for fiscal years beginning after December 15, 2015. The Company has followed the decision tree set forth in ASC 810-10-05-6 in analyzing each of its investments in real estate ventures. The Company examines specific criteria and uses judgment when determining if the real estate venture is a VIE and then if the Company is the primary beneficiary of a VIE. Factors considered in the qualification of a VIE include sufficient equity investment at risk, disproportionate voting rights and substantially all of the activities are conducted on behalf of an investor with disproportionately few voting rights, and characteristics of a controlling financial interest. Accounting guidance requires the Company to perform the VIE primary-beneficiary assessment for entities determined to be VIEs. The Company is required to consolidate all VIEs in which the Company is the primary beneficiary. The guidance requires consolidation of VIEs that a reporting entity has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly affect the VIE's economic performance and (b) the obligation to absorb losses or the right to receive residual returns of the VIE that could potentially be significant to the VIE. The Company's maximum exposure to loss in its investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs which is the carrying value. The Company's maximum exposure to loss in its investment in its consolidated VIEs is limited to its investment which is the carrying value of the investment net of the non-controlling interest. Creditors of the consolidated VIEs have no recourse to the general credit of the primary beneficiary. |
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New Accounting Pronouncements | Revisions to December 31, 2015 Consolidated Balance Sheet. In April 2015, the FASB issued ASU No. 2015-03, “Interest-Imputation of Interest” (“ASU 2015-03”), which requires debt issuance costs to be reported in the balance sheet as a direct deduction from the face amount of the note. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015. This amendment must be applied retrospectively to all periods presented. The Company adopted the provisions of this ASU retrospectively in the first quarter of 2016, and adjusted all prior periods accordingly. The adoption of this ASU will simplify the presentation of debt issuance costs and reduce complexity without decreasing the usefulness of information provided to users of financial statements. New Accounting Pronouncements: In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 modifies U.S. Generally Accepted Accounting Principles (“GAAP”) by requiring the following, among others: (1) all excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit on the income statement (excess tax benefits are recognized regardless of whether the benefit reduces taxes payable in the current period); (2) excess tax benefits are to be classified along with other income tax cash flows as an operating activity in the statement of cash flows; (3) in the area of forfeitures, an entity can still follow the current U.S. GAAP practice of making an entity-wide accounting policy election to estimate the number of awards that are expected to vest or may instead account for forfeitures when they occur; and (4) classification as a financing activity in the statement of cash flows of cash paid by an employer to the taxing authorities when directly withholding shares for tax withholding purposes. ASU 2016-09 is effective for the Company's fiscal year beginning January 1, 2017, including interim periods. Early application is permitted. The Company is currently assessing the impact the adoption of ASU 2016-09 will have on the Company's condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 does not change the core principle of the guidance stated in ASU 2014-09, instead, the amendments in this ASU are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations and whether an entity reports revenue on a gross or net basis. ASU 2016-08 will have the same effective date and transition requirements as the new revenue standard issued in ASU 2014-09. The Company is currently evaluating the method and impact the adoption of this ASU and ASU 2014-09 will have on the Company's condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Investments- Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 will be effective for the Company’s fiscal year beginning January 1, 2017 and subsequent interim periods. The adoption of ASU 2016-07 is not expected to have a material effect on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (a consensus of the Emerging Issues Task Force) (“ASU 2016-06”). ASU 2016-06 clarifies the requirement for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under ASU 2016-06 is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments in ASU 2016-06 are effective for the Company's fiscal year beginning January 1, 2017, including interim periods. The Company is currently evaluating the method and impact the adoption of this ASU 2016-06 will have on the Company's condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. Accounting for lessors remains largely unchanged from current U.S. GAAP. ASU 2016-02 will be effective for the Company’s fiscal year beginning January 1, 2019 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on the Company's condensed consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such these investments may be measured at cost. ASU 2016-01 will be effective for the Company’s fiscal year beginning January 1, 2018 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-01 will have on the Company’s condensed consolidated financial statements. In May 2014, FASB issued ASU 2014-9, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-9”). ASU 2014-9 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. As amended by ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date the new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning subsequent to December 15, 2016. The new standard is required to be applied retrospectively to each prior reporting period presented or with the cumulative effect of initially applying it recognized at the date of initial application. The Company has not yet selected a transition method and it has not determined the impact of the new standard on the Company's condensed consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of impacts of application of new ASU | The cumulative impacts of the application of the new ASU are presented in the table below:
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The cumulative impact of the retrospective application of the equity method of accounting for the two investments are presented in the table below:
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Net income for purposes of determining basic and diluted EPS | Net income for purposes of determining basic and diluted EPS was as follows:
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Basic and diluted EPS calculation shares | Basic and diluted EPS were calculated using the following common shares:
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Outstanding shares not included in the computation of diluted EPS | The following were outstanding during the three and six months ended June 30, 2016 and 2015, but were not included in the computation of diluted EPS because the effect was anti-dilutive.
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Schedule of other income (loss), net | Other income, net consisted of:
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Schedule of other current liabilities | Other current liabilities consisted of:
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Schedule of goodwill and other intangible assets, net | The components of “Goodwill and other intangible assets, net” were as follows:
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consist of:
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Investment Securities Available for Sale (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | The components of investment securities available for sale at June 30, 2016 were as follows:
The components of investment securities available for sale at December 31, 2015 were as follows:
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Schedule of Maturity Dates of Fixed Income Securities | The table below summarizes the maturity dates of marketable debt securities at June 30, 2016.
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Schedule of Unrealized Loss on Investments | The available-for-sale investment securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:
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Schedule of Realized Gains (Losses) | Gross realized gains and losses on available-for-sale investment securities were as follows:
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Long-Term Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost method investments | Long-term investments consisted of the following:
Long-term investments accounted for at cost consisted of the following:
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Equity method investments | Long-term investments accounted for under the equity method consisted of the following:
Long-term investments consisted of the following:
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New Valley LLC (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate ventures | Investments in real estate ventures. New Valley also holds equity investments in various real estate projects domestically and internationally. The components of “Investments in real estate ventures” were as follows:
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Schedule of real estate held for sale, net | The components of “Investments in real estate, net” were as follows:
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Investment in Escena | Escena. The assets of “Escena, net” were as follows:
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Notes Payable, Long-Term Debt and Other Obligations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable, long-term debt and other obligations | Notes payable, long-term debt and other obligations consist of:
______________________ * The fair value of the derivatives embedded within the 7.5% Variable Interest Senior Convertible Notes ($61,998 at June 30, 2016 and $72,083 at December 31, 2015, respectively) and the 5.5% Variable Interest Senior Convertible Debentures ($64,934 at June 30, 2016 and $71,959 at December 31, 2015, respectively), is separately classified as a derivative liability in the condensed consolidated balance sheets. |
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Schedule of conversion rates for all convertible debt outstanding | The conversion rates for all convertible debt outstanding as of June 30, 2016 and December 31, 2015, are summarized below:
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Schedule of non-cash interest expense - Vector | Non-Cash Interest Expense - Vector:
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Schedule of fair value of notes payable and long-term debt | Fair Value of Notes Payable and Long-Term Debt:
______________________ (1) The carrying value does not include the carrying value of the embedded derivative. See Note 11. |
Contingencies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of contingencies | The activity in the Company's accruals for the MSA and tobacco litigation for the six months ended June 30, 2016 were as follows:
The activity in the Company's accruals for the MSA and tobacco litigation for the six months ended June 30, 2015 were as follows:
The following table lists the number of Individual Actions by state:
As of June 30, 2016, the following Engle progeny cases have resulted in judgments against Liggett:
|
Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following table summarizes key information related to the Company's pension plans and other postretirement benefits:
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Restructuring (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | The following table presents the activity under the Tobacco segment restructuring plan for the six months ended June 30, 2016:
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | The Company's income tax expense consisted of the following:
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Investments and Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's recurring financial assets and liabilities subject to fair value measurements | The Company's recurring financial assets and liabilities subject to fair value measurements were as follows:
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Unobservable inputs related to the valuations of the Level 3 assets | The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at June 30, 2016:
The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2015:
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Unobservable inputs related to the valuations of the Level 3 liabilities | The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at June 30, 2016:
The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2015:
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial information for the company's operations before taxes | Financial information for the Company’s operations before taxes and non-controlling interests for the three and six months ended June 30, 2016 and 2015 were as follows:
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Condensed Consolidating Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS
CONDENSED CONSOLIDATING BALANCE SHEETS
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Condensed Consolidating Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
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Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
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Summary of Significant Accounting Policies (Schedule of prior period revisions) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | $ 21,985 | $ 21,985 | $ 21,120 | ||
Total assets | 1,479,500 | 1,479,500 | 1,280,615 | ||
Notes payable, long-term debt and other obligations, less current portion | 1,110,731 | 1,110,731 | 856,108 | ||
Total liabilities | 1,654,936 | 1,654,936 | 1,402,776 | ||
Total stockholders' equity | (175,436) | (175,436) | (122,161) | ||
Total liabilities and stockholders' deficiency | 1,479,500 | 1,479,500 | 1,280,615 | ||
Operating, selling, administrative and general expenses | 83,922 | $ 79,916 | 163,750 | $ 154,097 | |
Operating income (loss) | 70,720 | 55,803 | 132,879 | 99,521 | |
Equity in earnings (losses) from investments | 1,089 | (2,163) | (582) | (1,551) | |
Other, net | 581 | 1,821 | 1,628 | 3,758 | |
Income before provision for income taxes | 46,340 | 30,622 | 82,096 | 64,970 | |
Income tax expense | 19,003 | 11,178 | 33,366 | 24,045 | |
Net income | 27,337 | 19,444 | 48,730 | 40,925 | |
Net income attributed to Vector Group Ltd. | 24,015 | 17,607 | 43,353 | 38,828 | |
Other comprehensive (loss) income, net of tax | (269) | 227 | (226) | 5,209 | |
Comprehensive income | 27,068 | 19,671 | 48,504 | 46,134 | |
Comprehensive income attributed to Vector Group Ltd. | $ 23,746 | 17,834 | $ 43,127 | 44,037 | |
As Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | 51,261 | ||||
Total assets | 1,310,756 | ||||
Notes payable, long-term debt and other obligations, less current portion | 886,249 | ||||
Total liabilities | 1,432,917 | ||||
Total stockholders' equity | (122,161) | ||||
Total liabilities and stockholders' deficiency | 1,310,756 | ||||
Operating, selling, administrative and general expenses | 79,679 | 153,623 | |||
Operating income (loss) | 56,040 | 99,995 | |||
Equity in earnings (losses) from investments | (1,657) | (1,694) | |||
Other, net | 1,525 | 3,421 | |||
Income before provision for income taxes | 31,069 | 64,964 | |||
Income tax expense | 11,364 | 24,043 | |||
Net income | 19,705 | 40,921 | |||
Net income attributed to Vector Group Ltd. | 17,868 | 38,824 | |||
Other comprehensive (loss) income, net of tax | (2,781) | (782) | |||
Comprehensive income | 16,924 | 40,139 | |||
Comprehensive income attributed to Vector Group Ltd. | 15,087 | 38,042 | |||
Revision | Adoption of Equity Method | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating, selling, administrative and general expenses | 237 | 474 | |||
Operating income (loss) | (237) | (474) | |||
Equity in earnings (losses) from investments | (506) | 143 | |||
Other, net | 296 | 337 | |||
Income before provision for income taxes | (447) | 6 | |||
Income tax expense | (186) | 2 | |||
Net income | (261) | 4 | |||
Net income attributed to Vector Group Ltd. | (261) | 4 | |||
Other comprehensive (loss) income, net of tax | 3,008 | 5,991 | |||
Comprehensive income | 2,747 | 5,995 | |||
Comprehensive income attributed to Vector Group Ltd. | $ 2,747 | $ 5,995 | |||
Revision | ASU 2015-03 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | (30,141) | ||||
Total assets | (30,141) | ||||
Notes payable, long-term debt and other obligations, less current portion | (30,141) | ||||
Total liabilities | (30,141) | ||||
Total stockholders' equity | 0 | ||||
Total liabilities and stockholders' deficiency | $ (30,141) |
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
Sep. 29, 2015 |
---|---|---|---|
Accounting Policies [Abstract] | |||
Stock dividend paid to company stockholders | 5.00% | ||
Embedded Derivative [Line Items] | |||
Fair market value of embedded derivatives at the midpoint of the inputs | $ 126,932 | $ 144,042 | |
Minimum | |||
Embedded Derivative [Line Items] | |||
Fair market value of embedded derivatives at the midpoint of the inputs | 125,983 | 143,422 | |
Maximum | |||
Embedded Derivative [Line Items] | |||
Fair market value of embedded derivatives at the midpoint of the inputs | $ 127,870 | $ 144,660 |
Summary of Significant Accounting Policies (Net Income (Loss) for Purposes of Determining Basic and Diluted EPS) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Accounting Policies [Abstract] | ||||
Net income attributed to Vector Group Ltd. | $ 24,015 | $ 17,607 | $ 43,353 | $ 38,828 |
Income attributed to participating securities | (784) | (521) | (1,417) | (1,151) |
Income attributed to participating securities | (784) | (521) | (1,417) | (1,151) |
Net income available to common shares attributed to Vector Group Ltd. | 23,231 | 17,086 | 41,936 | 37,677 |
Net income available to common shares attributed to Vector Group Ltd. | $ 23,231 | $ 17,086 | $ 41,936 | $ 37,677 |
Summary of Significant Accounting Policies (Basic and Diluted Earnings Per Share (in shares)) (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Accounting Policies [Abstract] | ||||
Weighted-average shares for basic EPS | 118,065,857 | 117,954,708 | 118,062,358 | 117,475,380 |
Plus incremental shares related to stock options and non-vested restricted stock | 236,348 | 209,067 | 215,386 | 205,262 |
Weighted-average shares for diluted EPS | 118,302,205 | 118,163,775 | 118,277,744 | 117,680,642 |
Summary of Significant Accounting Policies (Antidilutive Securities Excluded from Earnings Per Share) (Details) - Weighted-average number of shares issuable upon conversion of debt - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidiliitive securities excluded from computation (in shares) | 24,895,477 | 24,895,477 | 24,895,477 | 25,334,835 |
Weighted-average conversion price (in dollars per share) | $ 19.63 | $ 19.63 | $ 19.63 | $ 19.48 |
Summary of Significant Accounting Policies (Schedule of Other Income, Net) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Accounting Policies [Abstract] | ||||
Interest and dividend income | $ 1,452 | $ 1,795 | $ 2,776 | $ 3,535 |
Gain on long-term investment | 0 | 24 | 0 | 224 |
Impairment of long-term investments | (921) | 0 | (1,203) | 0 |
Other income (expense) | 50 | 2 | 55 | (1) |
Other income, net | $ 581 | $ 1,821 | $ 1,628 | $ 3,758 |
Summary of Significant Accounting Policies (Other Current Liabilities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounting Policies [Abstract] | ||
Accounts payable | $ 10,265 | $ 19,639 |
Accrued promotional expenses | 22,269 | 24,816 |
Accrued excise and payroll taxes payable, net | 16,784 | 26,556 |
Accrued interest | 35,028 | 28,147 |
Commissions payable | 9,885 | 11,008 |
Accrued salary and benefits | 18,179 | 22,774 |
Other current liabilities | 27,978 | 21,277 |
Total other current liabilities | $ 140,388 | $ 154,217 |
Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets, net) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 70,791 | $ 70,791 |
Intangibles with a finite life, net | 4,564 | 5,657 |
Total goodwill and other intangible assets, net | 262,866 | 263,959 |
Intangible asset associated with benefit under the MSA | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite life intangibles: | 107,511 | 107,511 |
Trademark - Douglas Elliman | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite life intangibles: | $ 80,000 | $ 80,000 |
Summary of Significant Accounting Policies (Commitments) (Details) - Douglas Elliman - Lease Extension and Sublease Agreement $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Operating Leased Assets [Line Items] | |
Possible increase in lease commitments 2016 | $ 0 |
Possible increase in lease commitments 2017 | 1,164 |
Possible increase in lease commitments 2018 | 1,412 |
Possible increase in lease commitments 2019 | 3,733 |
Possible increase in lease commitments 2020 | 5,394 |
Possible increase in lease commitments, thereafter | $ 69,460 |
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory [Line Items] | ||
Leaf tobacco | $ 49,537 | $ 49,856 |
Other raw materials | 3,586 | 3,578 |
Work-in-process | 606 | 789 |
Inventories at current cost | 121,015 | 115,796 |
LIFO adjustments | (28,280) | (29,280) |
Inventory, net | 92,735 | 86,516 |
Cigarettes | ||
Inventory [Line Items] | ||
Finished goods | 67,219 | 61,493 |
E-Cigarettes | ||
Inventory [Line Items] | ||
Finished goods | 67 | 80 |
LIFO adjustments | $ (5) | $ (5) |
Inventories (Narrartive) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Inventory [Line Items] | ||
LIFO adjustments | $ 28,280 | $ 29,280 |
Capitalized MSA cost in finished goods inventory | 15,865 | 15,796 |
Inventories | ||
Inventory [Line Items] | ||
Federal excise tax in inventory | 26,417 | 23,455 |
Liggett | Inventories | ||
Inventory [Line Items] | ||
Purchase commitments | 16,151 | |
Leaf tobacco | ||
Inventory [Line Items] | ||
LIFO adjustments | 18,863 | 19,863 |
Other raw materials | ||
Inventory [Line Items] | ||
LIFO adjustments | 643 | 643 |
Work-in-process | ||
Inventory [Line Items] | ||
LIFO adjustments | 33 | 33 |
Finished goods | ||
Inventory [Line Items] | ||
LIFO adjustments | 8,736 | 8,736 |
E-Cigarettes | ||
Inventory [Line Items] | ||
LIFO adjustments | $ 5 | $ 5 |
Investment Securities Available for Sale (Components of Investment Securities Available for Sale) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 142,344 | $ 162,168 |
Gross Unrealized Gains | 18,716 | 19,885 |
Gross Unrealized Losses | (206) | (77) |
Fair Value | 160,854 | 181,976 |
Marketable equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 38,172 | 47,502 |
Gross Unrealized Gains | 17,343 | 19,833 |
Gross Unrealized Losses | (206) | (62) |
Fair Value | 55,309 | 67,273 |
Mutual funds invested in fixed income securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 20,307 | 20,126 |
Gross Unrealized Gains | 211 | 0 |
Gross Unrealized Losses | 0 | (15) |
Fair Value | 20,518 | 20,111 |
Total marketable debt securities by maturity dates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 83,865 | 94,540 |
Gross Unrealized Gains | 1,162 | 52 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 85,027 | $ 94,592 |
Investment Securities Available for Sale (Maturity Dates of Marketable Debt Securities) (Details) $ in Thousands |
Jun. 30, 2016
USD ($)
|
---|---|
U.S. Government securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Market Value | $ 27,456 |
Under 1 Year | 0 |
1 Year up to 5 Years | 27,456 |
More than 5 Years | 0 |
Corporate securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Market Value | 35,660 |
Under 1 Year | 2,271 |
1 Year up to 5 Years | 33,389 |
More than 5 Years | 0 |
U.S. mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Market Value | 7,343 |
Under 1 Year | 0 |
1 Year up to 5 Years | 49 |
More than 5 Years | 7,294 |
Commercial mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Market Value | 3,675 |
Under 1 Year | 0 |
1 Year up to 5 Years | 0 |
More than 5 Years | 3,675 |
U.S. asset-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Market Value | 2,115 |
Under 1 Year | 0 |
1 Year up to 5 Years | 2,115 |
More than 5 Years | 0 |
Commercial paper | |
Schedule of Available-for-sale Securities [Line Items] | |
Market Value | 7,985 |
Under 1 Year | 7,985 |
1 Year up to 5 Years | 0 |
More than 5 Years | 0 |
Index-linked U.S. bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Market Value | 793 |
Under 1 Year | 0 |
1 Year up to 5 Years | 793 |
More than 5 Years | 0 |
Total marketable debt securities by maturity dates | |
Schedule of Available-for-sale Securities [Line Items] | |
Market Value | 85,027 |
Under 1 Year | 10,256 |
1 Year up to 5 Years | 63,802 |
More than 5 Years | $ 10,969 |
Investment Securities Available for Sale (Securities with Continuous Unrealized Losses) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
In loss position for Less than 12 months, Fair Value | $ 0 | $ 15,991 |
In loss position for Less than 12 months, Unrealized Losses | 0 | (77) |
Total Fair Value | 5,794 | 15,991 |
In loss position for 12 months or more, Fair Value | 5,794 | 0 |
In loss position for 12 months or more, Unrealized Losses | (206) | 0 |
Total Unrealized Losses | (206) | (77) |
Marketable equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
In loss position for Less than 12 months, Fair Value | 0 | 5,938 |
In loss position for Less than 12 months, Unrealized Losses | 0 | (62) |
Total Fair Value | 5,794 | 5,938 |
In loss position for 12 months or more, Fair Value | 5,794 | 0 |
In loss position for 12 months or more, Unrealized Losses | (206) | 0 |
Total Unrealized Losses | $ (206) | (62) |
Mutual funds invested in fixed income securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
In loss position for Less than 12 months, Fair Value | 10,053 | |
In loss position for Less than 12 months, Unrealized Losses | (15) | |
Total Fair Value | 10,053 | |
In loss position for 12 months or more, Fair Value | 0 | |
In loss position for 12 months or more, Unrealized Losses | 0 | |
Total Unrealized Losses | $ (15) |
Investment Securities Available for Sale (Gross Realized Gains and Losses on Available-for-Sale Securities) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains on sales | $ 206 | $ 520 | $ 955 | $ 14,084 |
Gross realized losses on sales | (67) | (710) | (249) | (1,245) |
Gains (losses) on sale of investment securities available for sale | 139 | (190) | 706 | 12,839 |
Gross realized losses on other-than-temporary impairments | $ (49) | $ 0 | $ (4,862) | $ 0 |
Investment Securities Available for Sale (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross realized losses on other-than-temporary impairments | $ (49) | $ 0 | $ (4,862) | $ 0 |
Proceeds from investment securities sales | 67,033 | 118,261 | ||
Maturities of investment securities | 343 | 1,737 | ||
Morgans Hotel Group Co. [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross realized losses on other-than-temporary impairments | (4,772) | |||
Corporate Securities and U.S. Government Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Maturities of investment securities | $ 5,269 | $ 5,267 |
Long-Term Investments (Long-term Investments) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Long-term Investments [Abstract] | ||
Investments accounted at cost | $ 39,028 | $ 41,231 |
Investments accounted for under the equity method | 20,341 | 21,495 |
Long-term investments | $ 59,369 | $ 62,726 |
Long-Term Investments (Cost-Method Investments) (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Schedule of Cost-method Investments [Line Items] | |||
Cost-method investments, carrying value | $ 39,028 | $ 41,231 | |
Cost-method investments, fair value | 42,026 | 44,769 | |
Cash distributions from cost method investments | (1,000) | $ (371) | |
Purchase of long-term investments | 50 | $ 5,000 | |
Reinsurance Company | |||
Schedule of Cost-method Investments [Line Items] | |||
Purchase of long-term investments | 5,000 | ||
Investments partnerships | |||
Schedule of Cost-method Investments [Line Items] | |||
Cost-method investments, carrying value | 38,527 | 40,730 | |
Cost-method investments, fair value | 41,522 | 44,217 | |
Real estate partnership | |||
Schedule of Cost-method Investments [Line Items] | |||
Cost-method investments, carrying value | 501 | 501 | |
Cost-method investments, fair value | $ 504 | $ 552 |
Long-Term Investments (Equity-Method Investments) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Investments accounted for under the equity method | $ 20,341 | $ 20,341 | $ 21,495 | ||
Distributions of equity method investment | 572 | $ 1,754 | |||
Equity in earnings (losses) from investments | 1,089 | $ (2,163) | (582) | $ (1,551) | |
Indian Creek Investors LP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments accounted for under the equity method | $ 4,929 | $ 4,929 | 4,989 | ||
Equity-method ownership percentage | 20.13% | 20.13% | |||
Boyar Value Fund | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments accounted for under the equity method | $ 7,312 | $ 7,312 | 7,302 | ||
Equity-method ownership percentage | 30.65% | 30.65% | |||
Quoted market value | $ 7,312 | $ 7,312 | |||
Ladenburg Thalmann Financial Services Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments accounted for under the equity method | $ 8,100 | $ 8,100 | 9,204 | ||
Equity-method ownership percentage | 7.75% | 7.75% | |||
Quoted market value | $ 33,491 | $ 33,491 | |||
Castle Brands, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments accounted for under the equity method | $ 0 | $ 0 | $ 0 | ||
Equity-method ownership percentage | 7.91% | 7.91% | |||
Quoted market value | $ 9,250 | $ 9,250 |
New Valley LLC (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
unit
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
unit
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
building
|
Apr. 30, 2015
USD ($)
|
|
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | $ 206,139 | $ 206,139 | $ 217,168 | |||
Equity in earnings (losses) from investments | 1,089 | $ (2,163) | (582) | $ (1,551) | ||
Investments in real estate ventures | 11,806 | 34,857 | ||||
Distributions from non-consolidated real estate businesses | (17,983) | 0 | ||||
Investments in real estate, net | 23,328 | 23,328 | $ 23,318 | |||
Escena | ||||||
Schedule of Investments [Line Items] | ||||||
Operating income (loss) | (299) | (173) | 209 | 552 | ||
Apartment Buildings | ST Portfolio, Highgrove [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Number of real estate properties sold | building | 1 | |||||
Number of real estate properties | building | 2 | |||||
Apartment Buildings | ST Portfolio, Phoenix [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Number of real estate properties sold | building | 1 | |||||
Number of real estate properties | building | 3 | |||||
New Valley LLC [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 206,139 | 206,139 | $ 217,168 | |||
Interest costs capitalized | 4,836 | |||||
Investments in real estate, net | $ 23,328 | $ 23,328 | 23,318 | |||
New Valley LLC [Member] | Douglas Elliman Realty LLC [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Ownership percentage by parent | 70.59% | 70.59% | ||||
New Valley LLC [Member] | 10 Madison Square Park West (1107 Broadway) | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | $ 9,188 | $ 9,188 | 11,391 | |||
New Valley LLC [Member] | The Marquand (11 East 68th Street) [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | $ 9,333 | $ 9,333 | 13,900 | |||
Equity in earnings (losses) from investments | 1,501 | |||||
Number of units in real estate property sold | unit | 3 | 3 | ||||
New Valley LLC [Member] | 11 Beach Street | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | $ 13,702 | $ 13,702 | 13,209 | |||
New Valley LLC [Member] | 20 Times Square (701 Seventh Avenue) | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 16,487 | 16,487 | 14,985 | |||
New Valley LLC [Member] | 111 Murray Street | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 25,308 | 25,308 | 25,567 | |||
New Valley LLC [Member] | 160 Leroy Street | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 4,511 | 4,511 | 3,952 | |||
New Valley LLC [Member] | 215 Chrystie Street | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 5,729 | 5,729 | 5,592 | |||
New Valley LLC [Member] | The Dutch (25-19 43rd Avenue) | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 1,129 | 1,129 | 1,077 | |||
New Valley LLC [Member] | Queens Plaza (23-10 Queens Plaza South) | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 16,834 | 16,834 | 16,177 | |||
New Valley LLC [Member] | 87 Park (8701 Collins Avenue) | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 8,846 | 8,846 | 8,658 | |||
New Valley LLC [Member] | 125 Greenwich Street | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 9,780 | 9,780 | 9,750 | |||
New Valley LLC [Member] | West Hollywood Edition (9040 Sunset Boulevard) | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 7,050 | 7,050 | 10,510 | |||
New Valley LLC [Member] | 76 Eleventh Avenue | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 18,867 | 18,867 | 17,967 | |||
New Valley LLC [Member] | Monad Terrace | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 7,774 | 7,774 | 6,608 | |||
New Valley LLC [Member] | Takanasee | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 4,916 | 4,916 | 4,680 | |||
New Valley LLC [Member] | ST Portfolio and Maryland Portfolio [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Distributions from non-consolidated real estate businesses | (8,707) | |||||
New Valley LLC [Member] | Maryland Portfolio | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 0 | 0 | 0 | |||
Distributions from non-consolidated real estate businesses | (493) | |||||
New Valley LLC [Member] | ST Portfolio | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 9,193 | 9,193 | 15,754 | |||
New Valley LLC [Member] | Park Lane Hotel and Coral Beach and Tennis Club [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 3,005 | 1,980 | ||||
New Valley LLC [Member] | Park Lane Hotel | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 21,138 | 21,138 | 19,697 | |||
New Valley LLC [Member] | Coral Beach and Tennis Club | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 3,162 | 3,162 | 3,159 | |||
New Valley LLC [Member] | Hotel Taiwana | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 7,786 | 7,786 | 7,069 | |||
New Valley LLC [Member] | The Plaza at Harmon Meadow | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | $ 3,682 | 3,682 | 5,449 | |||
New Valley LLC [Member] | Chelsea Eleven LLC | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | 236 | |||||
Distributions from non-consolidated real estate businesses | (236) | |||||
New Valley LLC [Member] | 20 Times Square, 160 Leroy Street, West Hollywood Edition, and Monad Terrace | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 8,801 | |||||
New Valley LLC [Member] | 215 Chrystie Street, 76 Eleventh Avenue and Monad Terrace | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 27,091 | |||||
New Valley LLC [Member] | 10 Madison Square West, the Marquand, West Hollywood Edition [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Distributions from non-consolidated real estate businesses | $ (19,985) | |||||
New Valley LLC [Member] | Insurance consulting company | ||||||
Schedule of Investments [Line Items] | ||||||
Equity-method ownership percentage | 50.00% | 50.00% | ||||
New Valley LLC [Member] | Harmon Meadow | ||||||
Schedule of Investments [Line Items] | ||||||
Distributions from non-consolidated real estate businesses | $ (235) | |||||
New Valley LLC [Member] | Escena | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate, net | $ 10,644 | 10,644 | 10,716 | |||
New Valley LLC [Member] | Escena | Escena | ||||||
Schedule of Investments [Line Items] | ||||||
Land and land improvements | 8,907 | 8,907 | 8,907 | |||
Building and building improvements | 1,874 | 1,874 | 1,875 | |||
Investments in real estate, net | 2,001 | 2,001 | 1,923 | |||
Total investment in Escena before depreciation | 12,782 | 12,782 | 12,705 | |||
Less accumulated depreciation | (2,138) | (2,138) | (1,989) | |||
Assets of Escena, net | 10,644 | 10,644 | 10,716 | |||
New Valley LLC [Member] | Sagaponack | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate, net | 12,684 | 12,684 | 12,602 | |||
Total investment in Escena before depreciation | $ 12,502 | |||||
New Valley LLC [Member] | Condominium and Mixed Use Development | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 159,454 | 159,454 | 164,023 | |||
Equity in earnings (losses) from investments | 2,962 | 138 | 1,779 | 675 | ||
Maximum exposure to loss as a result of this investment | $ 140,667 | $ 140,667 | ||||
New Valley LLC [Member] | Condominium and Mixed Use Development | Minimum | ||||||
Schedule of Investments [Line Items] | ||||||
Equity-method ownership percentage | 3.10% | 3.10% | ||||
New Valley LLC [Member] | Condominium and Mixed Use Development | Maximum | ||||||
Schedule of Investments [Line Items] | ||||||
Equity-method ownership percentage | 49.50% | 49.50% | ||||
New Valley LLC [Member] | Condominium and Mixed Use Development | 10 Madison Square Park West (1107 Broadway) | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | $ 3,788 | $ 4,211 | ||||
New Valley LLC [Member] | Condominium and Mixed Use Development | Other Condominiums and Mixed-Use Development Projects [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | (826) | 34 | ||||
New Valley LLC [Member] | Condominium and Mixed Use Development | The Marquand (11 East 68th Street) [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | (962) | |||||
New Valley LLC [Member] | Condominium and Mixed Use Development | 11 Beach Street | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | (160) | |||||
New Valley LLC [Member] | Condominium and Mixed Use Development | 111 Murray Street | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | (247) | |||||
New Valley LLC [Member] | Condominium and Mixed Use Development | 215 Chrystie Street | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | (144) | |||||
New Valley LLC [Member] | Condominium and Mixed Use Development | Queens Plaza (23-10 Queens Plaza South) | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | (122) | |||||
New Valley LLC [Member] | Condominium and Mixed Use Development | 87 Park (8701 Collins Avenue) | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | (250) | |||||
New Valley LLC [Member] | Condominium and Mixed Use Development | West Hollywood Edition (9040 Sunset Boulevard) | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | (177) | |||||
New Valley LLC [Member] | Condominium and Mixed Use Development | Monad Terrace | ||||||
Schedule of Investments [Line Items] | ||||||
Equity in earnings (losses) from investments | (404) | |||||
New Valley LLC [Member] | Apartment Buildings | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 9,193 | 9,193 | 15,754 | |||
Equity in earnings (losses) from investments | 1,630 | 1,848 | 2,146 | 1,801 | ||
Maximum exposure to loss as a result of this investment | $ 9,193 | $ 9,193 | ||||
New Valley LLC [Member] | Apartment Buildings | Minimum | ||||||
Schedule of Investments [Line Items] | ||||||
Equity-method ownership percentage | 7.60% | 7.60% | ||||
New Valley LLC [Member] | Apartment Buildings | Maximum | ||||||
Schedule of Investments [Line Items] | ||||||
Equity-method ownership percentage | 16.30% | 16.30% | ||||
New Valley LLC [Member] | Hotels | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | $ 32,086 | $ 32,086 | 29,925 | |||
Equity in earnings (losses) from investments | (189) | (261) | (844) | (1,006) | ||
Maximum exposure to loss as a result of this investment | $ 32,086 | $ 32,086 | ||||
New Valley LLC [Member] | Hotels | Minimum | ||||||
Schedule of Investments [Line Items] | ||||||
Equity-method ownership percentage | 5.20% | 5.20% | ||||
New Valley LLC [Member] | Hotels | Maximum | ||||||
Schedule of Investments [Line Items] | ||||||
Equity-method ownership percentage | 49.00% | 49.00% | ||||
New Valley LLC [Member] | Commercial | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | $ 3,682 | $ 3,682 | 5,449 | |||
Equity in earnings (losses) from investments | (1,744) | $ 27 | (1,532) | $ 27 | ||
Maximum exposure to loss as a result of this investment | 3,682 | 3,682 | ||||
New Valley LLC [Member] | Other | ||||||
Schedule of Investments [Line Items] | ||||||
Investments in real estate ventures | 1,724 | 1,724 | $ 2,017 | |||
Douglas Elliman Realty LLC [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Proceeds from commissions received | $ 5,674 | $ 8,079 |
Notes Payable, Long-Term Debt and Other Obligations (Details) - USD ($) |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
May 09, 2016 |
Feb. 03, 2015 |
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | $ 1,161,518,000 | $ 895,168,000 | ||
Less: Debt issuance costs | (34,172,000) | (30,141,000) | ||
Total notes payable, long-term debt and other obligations | 1,127,346,000 | 865,027,000 | ||
Less: Current maturities | (16,615,000) | (8,919,000) | ||
Amount due after one year | 1,110,731,000 | 856,108,000 | ||
Fair value of derivatives embedded within convertible debt | 126,932,000 | 144,042,000 | ||
Common Stock | ||||
Debt Instrument [Line Items] | ||||
Note conversion (in shares) | 2,338,930 | |||
Senior Notes | 7.75% Senior Secured Notes due 2021, including premium of $15,391 and $8,014 | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | 850,391,000 | 608,014,000 | ||
Premium | 15,391,000 | 8,014,000 | ||
Interest rate | 7.75% | |||
Redemption price | 103.50% | |||
Net proceeds from issuance of debt | $ 236,900,000 | |||
Principal amount | $ 235,000,000 | 835,000,000 | ||
Convertible Debt | 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $121,788 and $132,119 | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | 108,212,000 | 97,881,000 | ||
Unamortized discount | $ 121,788,000 | 132,119,000 | ||
Interest rate | 7.50% | |||
Fair value of derivatives embedded within convertible debt | $ 61,998,000 | $ 72,083,000 | ||
Note conversion (in shares) | 62.5743 | 62.5743 | ||
Convertible Debt | 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $79,010 and $86,136 | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | $ 179,740,000 | $ 172,614,000 | ||
Unamortized discount | $ 79,010,000 | 86,136,000 | ||
Interest rate | 5.50% | |||
Fair value of derivatives embedded within convertible debt | $ 64,934,000 | $ 71,959,000 | ||
Note conversion (in shares) | 40.5891 | 40.5891 | ||
Convertible Debt | 6.75% Variable Interest Senior Convertible Note due 2015 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.75% | |||
Convertible principal balance | $ 25,000,000 | |||
Principal amount | 50,000,000 | |||
Increase in equity from conversion | $ 25,000,000 | |||
Line of Credit | Liggett | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding | $ 15,955,000 | |||
Remaining borrowing capacity | 44,000,000 | |||
Line of Credit | Term loan under credit facility | Liggett | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | 3,147,000 | $ 3,269,000 | ||
Line of Credit | Revolving credit facility | Liggett | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | 12,808,000 | 3,213,000 | ||
Equipment loans | Liggett | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | 6,866,000 | 9,716,000 | ||
Other | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | $ 354,000 | $ 461,000 |
Notes Payable, Long-Term Debt and Other Obligations (Convertible Notes Table) (Details) - Convertible Debt |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2016
shares
|
Dec. 31, 2015
shares
|
|
7.5% Variable Interest Senior Convertible Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Conversion Price (in dollars per share) | 15.98 | 15.98 |
Note conversion (in shares) | 62.5743 | 62.5743 |
5.5% Variable Interest Senior Convertible Debentures due 2020 | ||
Debt Instrument [Line Items] | ||
Conversion Price (in dollars per share) | 24.64 | 24.64 |
Note conversion (in shares) | 40.5891 | 40.5891 |
Notes Payable, Long-Term Debt and Other Obligations (Non Cash Interest Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Debt Disclosure [Abstract] | ||||
Amortization of debt discount, net | $ 8,653 | $ 6,213 | $ 16,609 | $ 11,840 |
Amortization of debt issuance costs | 1,401 | 1,022 | 2,569 | 1,988 |
Non-cash Interest Expense | $ 10,054 | $ 7,235 | $ 19,178 | $ 13,828 |
Notes Payable, Long-Term Debt and Other Obligations (Fair Value of Notes Payable and Long Term Debt) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 1,513,012 | $ 1,297,875 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 1,161,518 | $ 895,168 |
Contingencies (Overview and Bonds) (Details) - Liggett - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2009 |
|
Loss Contingencies [Line Items] | |||||
Tobacco product liability legal expenses and costs | $ 1,707 | $ 3,158 | $ 5,878 | $ 5,713 | |
Engle Progeny Cases | Florida | |||||
Loss Contingencies [Line Items] | |||||
Maximum bond required for judgments on appeal | $ 200,000 | ||||
Maximum bond required for judgments on appeal per case | $ 5,000 | ||||
Bonds | Putney, Calloway, Boatright, Buchanan and Ward Cases | |||||
Loss Contingencies [Line Items] | |||||
Security posted for appeal of judgment | $ 10,767 | $ 10,767 |
Contingencies (Cautionary Statement About Engle Progeny Cases) (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended |
---|---|---|---|
Oct. 31, 2013
USD ($)
case
|
Jun. 30, 2016
case
|
Jun. 30, 2016
USD ($)
case
|
|
Engle Progeny Cases | |||
Loss Contingencies [Line Items] | |||
Cases with judgments (more than) | 100 | 100 | |
Liggett | Engle Progeny Cases | |||
Loss Contingencies [Line Items] | |||
Cases with verdicts | 24 | 24 | |
Cases with verdicts in favor of plaintiffs | 15 | 15 | |
Cases with verdicts in favor of defendants | 9 | 9 | |
Cases with verdicts in favor of plaintiffs and punitive damages awarded | 4 | 4 | |
Cases settled | 4,900 | ||
Amount of litigation settlement to (against) entity | $ | $ (110,000) | ||
Liggett | Irimi and Cohen | |||
Loss Contingencies [Line Items] | |||
Cases with verdicts where defendants motion for new trial granted | 2 | 2 | |
Liggett and Vector Tobacco | Engle Progeny Cases | |||
Loss Contingencies [Line Items] | |||
Cases settled | 1 | 175 | |
Amount of litigation settlement to (against) entity | $ | $ (5,999) |
Contingencies (Individual Actions) (Details) - Individual Actions Cases |
Jun. 30, 2016
case
|
---|---|
Loss Contingencies [Line Items] | |
Cases pending | 38 |
Liggett | |
Loss Contingencies [Line Items] | |
Cases pending | 3 |
Liggett | Maryland | |
Loss Contingencies [Line Items] | |
Cases pending | 13 |
Liggett | Florida | |
Loss Contingencies [Line Items] | |
Cases pending | 11 |
Liggett | New York | |
Loss Contingencies [Line Items] | |
Cases pending | 7 |
Liggett | Louisiana | |
Loss Contingencies [Line Items] | |
Cases pending | 3 |
Liggett | West Virginia | |
Loss Contingencies [Line Items] | |
Cases pending | 2 |
Liggett | Missouri | |
Loss Contingencies [Line Items] | |
Cases pending | 1 |
Liggett | Ohio | |
Loss Contingencies [Line Items] | |
Cases pending | 1 |
Contingencies (Engle Progeny Cases and Settlement) (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 28, 2015 |
Oct. 31, 2013
USD ($)
case
|
May 31, 2003
USD ($)
plaintiff
|
Jul. 31, 2000
USD ($)
|
Apr. 30, 2000
USD ($)
|
Jul. 31, 1999
plaintiff
|
Jun. 30, 2016
USD ($)
case
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
case
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Loss Contingencies [Line Items] | |||||||||||
Litigation settlement and judgment expense | $ 0 | $ 1,250 | $ 2,350 | $ 2,093 | |||||||
Engle Progeny Cases | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of plaintiffs | plaintiff | 3 | ||||||||||
Compensatory damages awarded | $ 12,704 | ||||||||||
Punitive damages awarded | $ 145,000,000 | ||||||||||
Number of favorable plaintiff verdicts | plaintiff | 1 | ||||||||||
Damages awarded and subsequently overturned | $ 5,831 | ||||||||||
Number of unfavorable plaintiff verdicts | plaintiff | 2 | ||||||||||
Liggett | Engle Progeny Cases | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Punitive damages awarded | $ 790,000 | ||||||||||
Cases settled | case | 4,900 | ||||||||||
Litigation settlement amount paid in lump sum | $ 61,600 | ||||||||||
Litigation settlement, installment term | 14 years | ||||||||||
Cases settled and dismissed | case | 4,900 | ||||||||||
Litigation settlement and judgment expense | $ 86,213 | ||||||||||
Litigation settlement and judgment expense, amount discounted | $ 25,213 | ||||||||||
Discount rate | 11.00% | ||||||||||
Litigation settlement amount paid in installment payments | $ 48,000 | ||||||||||
Litigation settlement amount of estimated future payments per annum | $ 3,400 | ||||||||||
Cases pending | case | 245 | 245 | |||||||||
Liggett | Lukacs, Campbell, Douglas, Clay, Tullo, Ward Rizzuto, Lambert and Buchanan | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Payments for legal settlements | $ 39,773 |
Contingencies (Engle Progeny Judgments Schedule) (Details) - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jan. 06, 2016 |
Feb. 28, 2015 |
Nov. 30, 2014 |
Aug. 31, 2014 |
May 31, 2013 |
Jun. 30, 2016 |
|
Liggett | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages accrued, paid or compromised | $ (24,328) | |||||
Punitive damages accrued, paid or compromised | (10,500) | |||||
Liggett | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 28,866 | |||||
Punitive damages awarded | 10,800 | |||||
Liggett | Pending Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 4,538 | |||||
Punitive damages awarded | 300 | |||||
Liggett | Lukacs v. R.J. Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 12,418 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Campbell v R J Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 156 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Douglas v R J Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 1,350 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Clay v R J Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 349 | |||||
Punitive damages awarded | 1,000 | |||||
Liggett | Putney v R J Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 3,008 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Tullo v R J Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 225 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Ward v R J Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Attorneys' fees and costs awarded | 981 | |||||
Liggett | Ward v R J Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 1 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Calloway v RJ Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 1,530 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Buchanan v. R.J. Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 2,750 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Cohen v. R.J. Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | $ 205 | |||||
Apportioned fault percentage to defendant | 10.00% | |||||
Liggett | Cohen v. R.J. Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 0 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Rizzuto v. R.J. Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Amount of litigation settlement to (against) entity | (1,500) | |||||
Liggett | Rizzuto v. R.J. Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 3,479 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Irimi v. R.J. Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | $ 31 | |||||
Apportioned fault percentage to defendant | 1.00% | |||||
Liggett | Irimi v. R.J. Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 0 | |||||
Punitive damages awarded | 0 | |||||
Liggett | Lambert v. R.J. Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 3,600 | |||||
Punitive damages awarded | 9,500 | |||||
Liggett | Boatright v. R.J. Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | $ 12,750 | |||||
Punitive damages awarded | $ 300 | |||||
Liggett | Boatright v. R.J. Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 0 | |||||
Punitive damages awarded | 300 | |||||
Liggett | Caprio v. R.J. Reynolds | Judicial Ruling | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | 0 | |||||
Punitive damages awarded | 0 | |||||
RJ Reynolds | Cohen v. R.J. Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | $ 2,055 | |||||
RJ Reynolds | Irimi v. R.J. Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | $ 3,123 | |||||
RJ Reynolds | Boatright v. R.J. Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Apportioned fault percentage to plaintiff | 15.00% | |||||
RJ Reynolds | Caprio v. R.J. Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Economic damages awarded | $ 559 | |||||
R.J. Reynolds, Phillip Morris, Lorillard, and Liggett | Calloway v RJ Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Damages awarded | $ 16,100 | |||||
Punitive damages reversed | $ 7,600 | |||||
Phillip Morris | Boatright v. R.J. Reynolds | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | $ 15,000 | |||||
Punitive damages awarded | $ 19,700 | |||||
Apportioned fault percentage to defendant | 85.00% |
Contingencies (Appeals of Engle Progeny Judgments, Maryland and Only Liggett Cases) (Details) $ in Thousands |
1 Months Ended | |
---|---|---|
Mar. 31, 2012
case
|
Jun. 30, 2016
USD ($)
case
|
|
Engle Progeny Cases | ||
Loss Contingencies [Line Items] | ||
Number of cases declined for review by supreme court | 2 | |
Individual Actions Cases | ||
Loss Contingencies [Line Items] | ||
Cases pending | 38 | |
Liggett | Engle Progeny Cases | ||
Loss Contingencies [Line Items] | ||
Cases pending | 245 | |
Liggett | Putney, Calloway, Cohen, Irimi, Lambert, Boatright and Caprio [Member] | Minimum | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ | $ 0 | |
Liggett | Putney, Calloway, Cohen, Irimi, Lambert, Boatright and Caprio [Member] | Maximum | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ | $ 4,838 | |
Liggett | Individual Actions Cases | ||
Loss Contingencies [Line Items] | ||
Cases pending | 3 | |
Pending claims with no activity | 2 | |
Maryland | Synergy Exposure Cases | ||
Loss Contingencies [Line Items] | ||
Cases pending | 20 | |
Maryland | Liggett | Individual Actions Cases | ||
Loss Contingencies [Line Items] | ||
Cases pending | 13 |
Contingencies (Class Actions, Health Care Cost Recovery Actions, and Upcoming Trials) (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jul. 31, 2015
plaintiff
claims
case
|
Oct. 31, 2013
case
|
May 31, 2013
case
|
May 31, 2009 |
Jul. 31, 1999
plaintiff
|
Jun. 30, 2016
defendant
case
|
Jun. 30, 2016
USD ($)
defendant
case
|
Dec. 31, 2001
case
|
|
Parsons v. AC & S Inc. | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages sought | $ | $ 1,000 | |||||||
Number of defendants in bankruptcy | defendant | 3 | 3 | ||||||
Department of Justice Lawsuit | ||||||||
Loss Contingencies [Line Items] | ||||||||
Required reporting period | 10 years | |||||||
Engle Progeny Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of plaintiffs | plaintiff | 3 | |||||||
Pending claims scheduled for trial | 16 | 16 | ||||||
Individual Actions Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases pending | 38 | 38 | ||||||
Pending claims scheduled for trial | 2 | 2 | ||||||
Liggett | Class Actions | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases pending | 3 | 3 | ||||||
Liggett | Crow Creek Sioux Tribe v. American Tobacco Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases pending | 1 | 1 | ||||||
Liggett | Engle Progeny Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases pending | 245 | 245 | ||||||
Cases settled | 4,900 | |||||||
Liggett | Individual Actions Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases pending | 3 | 3 | ||||||
Liggett and Vector Tobacco | Engle Progeny Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases settled | 1 | 175 | ||||||
West Virginia | Tobacco Litigation Personal Injury Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases pending | 750 | |||||||
Number of mistrials | 2 | |||||||
Claims dismissed | 1 | |||||||
Number of plaintiffs | 30 | |||||||
Number of consolidated trials | claims | 6 | |||||||
Number of plaintiffs in each trial | plaintiff | 5 | |||||||
West Virginia | Liggett | Tobacco Litigation Personal Injury Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases pending | 25 | 25 | ||||||
West Virginia | Liggett | Individual Actions Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases pending | 2 | 2 |
Contingencies (MSA and Other State Settlement Agreements) (Details) |
6 Months Ended | 12 Months Ended | 25 Months Ended | |
---|---|---|---|---|
Dec. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
sponsorship
|
Dec. 31, 2015
USD ($)
|
Mar. 31, 1998
USD ($)
state
|
|
Health Care Cost Recovery Actions | ||||
Loss Contingencies [Line Items] | ||||
Number of states with settled litigation | state | 46 | |||
Number of brand name sponsorships allowed | sponsorship | 1 | |||
Brand name sponsorship period | 12 months | |||
Annual payment requirement | $ 9,000,000,000 | |||
Liggett | ||||
Loss Contingencies [Line Items] | ||||
Number of states with settled litigation | state | 45 | |||
Liggett | Health Care Cost Recovery Actions | ||||
Loss Contingencies [Line Items] | ||||
Estimated litigation liability | $ 0 | |||
Percentage of cigarettes sales exceeds market share exemption | 1.65% | |||
Vector Tobacco | Health Care Cost Recovery Actions | ||||
Loss Contingencies [Line Items] | ||||
Estimated litigation liability | $ 0 | |||
Percentage of cigarettes sales exceeds market share exemption | 0.28% | |||
Liggett and Vector Tobacco | Health Care Cost Recovery Actions | ||||
Loss Contingencies [Line Items] | ||||
Annual payment requirement | $ 115,000,000 | |||
Payments for legal settlements | $ 100,000,000 | |||
Cigarettes | Sales Revenue | Liggett and Vector Tobacco | ||||
Loss Contingencies [Line Items] | ||||
Concentration risk percentage | 3.30% |
Contingencies (Certain MSA Disputes) (Details) $ in Thousands |
1 Months Ended | 6 Months Ended | 36 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2010
state
|
Jun. 30, 2016
USD ($)
state
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2013
state
|
Jun. 30, 2013
state
|
|
2003 NPM Adjustment | |||||
Loss Contingencies [Line Items] | |||||
Number of states agreed to single arbitration | 48 | ||||
Aggregate number of settling states | 49 | ||||
Reduction in NPM adjustment, percent | 20.00% | ||||
Number of settling states with diligent enforcement not contested | 16 | ||||
Combined allocable share, percentage | 14.00% | ||||
Non-settling states | 15 | ||||
Non-settling states that did not diligently enforce escrow statutes | 4 | 6 | |||
2003-2012 NPM Adjustment | |||||
Loss Contingencies [Line Items] | |||||
Settling states wit term sheet | 22 | ||||
Kentucky and Indiana | 2003 NPM Adjustment | |||||
Loss Contingencies [Line Items] | |||||
Non-settling states that did not diligently enforce escrow statutes | 2 | ||||
Pennsylvania and Maryland | 2003 NPM Adjustment | |||||
Loss Contingencies [Line Items] | |||||
Reduction in NPM adjustment, percent | 50.00% | ||||
Missouri and New Mexico | 2003 NPM Adjustment | |||||
Loss Contingencies [Line Items] | |||||
Non-settling states that did not diligently enforce escrow statutes | 2 | ||||
Liggett and Vector Tobacco | 2004-2010 NPM Adjustment | |||||
Loss Contingencies [Line Items] | |||||
Amounts accrued | $ | $ 20,000 | ||||
Liggett and Vector Tobacco | Cost of Sales | Health Care Cost Recovery Actions, NPM Adjustment | |||||
Loss Contingencies [Line Items] | |||||
Settlement adjustment credit | $ | $ 22,356 | ||||
Liggett | 2011-2015 NPM Adjustment | |||||
Loss Contingencies [Line Items] | |||||
Amounts accrued | $ | $ 28,600 |
Contingencies (“Gross” v. “Net” Calculations and Other State Settlements) (Details) - Health Care Cost Recovery Actions |
1 Months Ended | 12 Months Ended | 25 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jan. 12, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Jul. 31, 2015
USD ($)
|
Oct. 31, 2014 |
Feb. 28, 2013 |
Dec. 31, 2010
USD ($)
|
Dec. 31, 2003
USD ($)
|
Mar. 31, 1998
USD ($)
state
|
|
Loss Contingencies [Line Items] | ||||||||
Annual payment requirement | $ 9,000,000,000 | |||||||
Liggett | ||||||||
Loss Contingencies [Line Items] | ||||||||
Increase in market share value used in calculation of payment obligation | 1.25% | |||||||
Claims dismissed, Increase in market share value used in calculation of payment obligation | 1.25% | |||||||
Damages awarded | $ 8,100,000 | $ 16,000,000 | ||||||
Number of states not included in settlement agreement | state | 4 | |||||||
MINNESOTA | Liggett | ||||||||
Loss Contingencies [Line Items] | ||||||||
Annual payment requirement | $ 100,000 | |||||||
Florida | Liggett | ||||||||
Loss Contingencies [Line Items] | ||||||||
Annual payment requirement | $ 250,000 | |||||||
Amount of litigation settlement to (against) entity | $ (1,200,000) | |||||||
Years annual payments required | 21 years | |||||||
Years annual payments required that are subject to inflation adjustment | 12 years | |||||||
MISSISSIPPI | Liggett | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages sought | $ 26,000,000 |
Contingencies (Activity in Accruals for MSA and Tobacco Litigation Schedule) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Loss Contingency Accrual [Roll Forward] | ||
Current liabilities, beginning balance | $ 52,145 | $ 29,471 |
Expenses | 45,220 | 55,925 |
Change in MSA obligations capitalized as inventory | 69 | 1,011 |
Payments | (38,392) | (23,787) |
Interest on withholding | 355 | 178 |
Current liabilities, ending balance | 60,486 | 66,103 |
Noncurrent liabilities, beginning balance | 44,812 | 51,509 |
Expenses | (195) | |
Reclassification from non-current liabilities | (1,089) | (3,305) |
Interest on withholding | 1,153 | 1,244 |
Noncurrent liabilities, ending balance | 44,876 | 49,253 |
Settled Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Current liabilities, beginning balance | 29,241 | 26,322 |
Expenses | 42,637 | 53,435 |
Change in MSA obligations capitalized as inventory | 69 | 1,011 |
Payments | (12,847) | (18,142) |
Interest on withholding | 35 | 0 |
Current liabilities, ending balance | 56,972 | 62,626 |
Noncurrent liabilities, beginning balance | 20,094 | 25,809 |
Expenses | 0 | |
Reclassification from non-current liabilities | 2,163 | 0 |
Interest on withholding | 0 | 0 |
Noncurrent liabilities, ending balance | 22,257 | 25,809 |
Pending Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Current liabilities, beginning balance | 22,904 | 3,149 |
Expenses | 2,583 | 2,490 |
Change in MSA obligations capitalized as inventory | 0 | 0 |
Payments | (25,545) | (5,645) |
Interest on withholding | 320 | 178 |
Current liabilities, ending balance | 3,514 | 3,477 |
Noncurrent liabilities, beginning balance | 24,718 | 25,700 |
Expenses | (195) | |
Reclassification from non-current liabilities | (3,252) | (3,305) |
Interest on withholding | 1,153 | 1,244 |
Noncurrent liabilities, ending balance | $ 22,619 | $ 23,444 |
Contingencies (Other Matters) (Details) $ in Thousands |
Jun. 30, 2016
USD ($)
|
---|---|
Liggett Vector Brands | Bonds | Maximum | |
Loss Contingencies [Line Items] | |
Estimate of possible loss | $ 500 |
Employee Benefit Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost — benefits earned during the period | $ 137 | $ 133 | $ 274 | $ 265 |
Interest cost on projected benefit obligation | 1,355 | 1,280 | 2,710 | 2,598 |
Expected return on assets | (1,519) | (1,888) | (3,038) | (3,813) |
Settlement loss | 0 | 1,607 | 0 | 1,607 |
Amortization of net loss (gain) | 464 | 278 | 928 | 569 |
Net expense | 437 | 1,410 | 874 | 1,226 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost — benefits earned during the period | 1 | 2 | 2 | 4 |
Interest cost on projected benefit obligation | 97 | 93 | 194 | 185 |
Expected return on assets | 0 | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | (19) | (24) | (38) | (48) |
Net expense | $ 79 | $ 71 | $ 158 | $ 141 |
Restructuring (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 0 | $ 0 | $ 41 | $ 0 |
Tobacco | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual balance as of January 1, 2016 | 490 | |||
Restructuring charges | 41 | |||
Utilized | (424) | |||
June 30, 2016 | 107 | 107 | ||
Tobacco | Employee Severance and Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual balance as of January 1, 2016 | 422 | |||
Restructuring charges | 0 | |||
Utilized | (315) | |||
June 30, 2016 | 107 | 107 | ||
Tobacco | Contract Termination/Exit Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual balance as of January 1, 2016 | 48 | |||
Restructuring charges | 41 | |||
Utilized | (89) | |||
June 30, 2016 | 0 | 0 | ||
Tobacco | Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual balance as of January 1, 2016 | 20 | |||
Restructuring charges | 0 | |||
Utilized | (20) | |||
June 30, 2016 | $ 0 | $ 0 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Income before provision for income taxes | $ 46,340 | $ 30,622 | $ 82,096 | $ 64,970 |
Income tax expense using estimated annual effective income tax rate | 18,793 | 11,347 | 33,317 | 24,145 |
Changes in effective tax rates | 210 | (78) | 0 | 0 |
Impact of discrete items, net | 0 | (91) | 49 | (100) |
Income tax expense | $ 19,003 | $ 11,178 | $ 33,366 | $ 24,045 |
Investments and Fair Value Measurements (Fair Value Measurements) (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Assets: | ||
Investment securities available for sale | $ 160,854 | $ 181,976 |
Liabilities: | ||
Fair value of derivatives embedded within convertible debt | 126,932 | 144,042 |
Long-term investments | 59,369 | 62,726 |
Investments in real estate, net | 23,328 | 23,318 |
5.5% Variable Interest Senior Convertible Debentures due 2020 | Convertible Debt | ||
Liabilities: | ||
Fair value of derivatives embedded within convertible debt | $ 64,934 | 71,959 |
Interest rate | 5.50% | |
Equity securities | ||
Assets: | ||
Investment securities available for sale | $ 55,309 | 67,273 |
Mutual funds invested in fixed income securities | ||
Assets: | ||
Investment securities available for sale | 20,518 | 20,111 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Investment securities available for sale | 160,854 | 181,976 |
Total | 553,486 | 292,127 |
Liabilities: | ||
Fair value of derivatives embedded within convertible debt | 126,932 | 144,042 |
Fair Value, Measurements, Recurring | Equity securities | ||
Assets: | ||
Investment securities available for sale | 55,309 | 67,273 |
Fair Value, Measurements, Recurring | Mutual funds invested in fixed income securities | ||
Assets: | ||
Investment securities available for sale | 20,518 | 20,111 |
Fair Value, Measurements, Recurring | U.S. Government securities | ||
Assets: | ||
Investment securities available for sale | 27,456 | 28,132 |
Fair Value, Measurements, Recurring | Corporate securities | ||
Assets: | ||
Investment securities available for sale | 35,660 | 41,561 |
Fair Value, Measurements, Recurring | U.S. mortgage-backed securities | ||
Assets: | ||
Investment securities available for sale | 7,343 | 5,790 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities available for sale | 3,675 | 8,728 |
Fair Value, Measurements, Recurring | U.S. asset-backed securities | ||
Assets: | ||
Investment securities available for sale | 2,115 | 8,276 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Assets: | ||
Investment securities available for sale | 7,985 | |
Fair Value, Measurements, Recurring | Index-linked U.S. bonds | ||
Assets: | ||
Investment securities available for sale | 793 | 2,105 |
Fair Value, Measurements, Recurring | Fixed income securities | ||
Assets: | ||
Investment securities available for sale | 85,027 | 94,592 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 336,845 | 93,915 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Assets: | ||
Cash and cash equivalents | 42,044 | |
Fair Value, Measurements, Recurring | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 2,976 | 3,469 |
Fair Value, Measurements, Recurring | Bonds | ||
Assets: | ||
Cash and cash equivalents | 10,767 | 12,767 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investment securities available for sale | 75,827 | 87,384 |
Total | 423,439 | 194,066 |
Liabilities: | ||
Fair value of derivatives embedded within convertible debt | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets: | ||
Investment securities available for sale | 55,309 | 67,273 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds invested in fixed income securities | ||
Assets: | ||
Investment securities available for sale | 20,518 | 20,111 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. mortgage-backed securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. asset-backed securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Assets: | ||
Investment securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Index-linked U.S. bonds | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 336,845 | 93,915 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Assets: | ||
Cash and cash equivalents | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Bonds | ||
Assets: | ||
Cash and cash equivalents | 10,767 | 12,767 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investment securities available for sale | 85,027 | 94,592 |
Total | 130,047 | 98,061 |
Liabilities: | ||
Fair value of derivatives embedded within convertible debt | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mutual funds invested in fixed income securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government securities | ||
Assets: | ||
Investment securities available for sale | 27,456 | 28,132 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Assets: | ||
Investment securities available for sale | 35,660 | 41,561 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. mortgage-backed securities | ||
Assets: | ||
Investment securities available for sale | 7,343 | 5,790 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities available for sale | 3,675 | 8,728 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. asset-backed securities | ||
Assets: | ||
Investment securities available for sale | 2,115 | 8,276 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Assets: | ||
Investment securities available for sale | 7,985 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Index-linked U.S. bonds | ||
Assets: | ||
Investment securities available for sale | 793 | 2,105 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fixed income securities | ||
Assets: | ||
Investment securities available for sale | 85,027 | 94,592 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Assets: | ||
Cash and cash equivalents | 42,044 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 2,976 | 3,469 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Bonds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Fair value of derivatives embedded within convertible debt | 126,932 | 144,042 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mutual funds invested in fixed income securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. mortgage-backed securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. asset-backed securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Assets: | ||
Investment securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Index-linked U.S. bonds | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fixed income securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Assets: | ||
Cash and cash equivalents | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Bonds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Liabilities: | ||
Long-term investments, fair value | 6,396 | 11,189 |
Real estate held for sale, fair value | 3,780 | |
Nonrecurring nonfinancial assets subject to fair value measurements | 14,969 | |
Gain (loss) on long-term investments | (1,203) | (811) |
Gain (loss) on real estate held for sale | (230) | |
Gain (loss) on long-term investments and real estate held for sale | (1,041) | |
Impairment charge included in earnings | 1,203 | 811 |
Long-term investments | 7,599 | 12,000 |
Investments in real estate, net | 4,010 | |
Impairment of real estate | 230 | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Long-term investments, fair value | $ 6,396 | 11,189 |
Real estate held for sale, fair value | 3,780 | |
Nonrecurring nonfinancial assets subject to fair value measurements | $ 14,969 |
Investments and Fair Value Measurements (Quantitative Information about Level 3 Fair Value Measurements) (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value of derivatives embedded within convertible debt | $ 126,932 | $ 144,042 |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value of derivatives embedded within convertible debt | $ 126,932 | $ 144,042 |
Assumed annual stock dividend | 5.00% | 5.00% |
Assumed annual cash dividend (in dollars per share) | $ 1.60 | $ 1.60 |
Stock price (in dollars per share) | $ 22.42 | $ 23.59 |
Convertible trading price (as a percentage of par value) | 110.88% | 114.31% |
Volatility | 19.33% | 18.30% |
Implied credit spread | 6.50% | 5.25% |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Implied credit spread | 6.00% | 5.00% |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Implied credit spread | 7.00% | 5.50% |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 438,273 | $ 416,173 | $ 819,073 | $ 776,933 | ||
Operating income (loss) | 70,720 | 55,803 | 132,879 | 99,521 | ||
Equity in earnings from real estate ventures | 2,813 | 1,856 | 2,306 | 2,194 | ||
Depreciation and amortization | 5,870 | 6,442 | 11,034 | 12,723 | ||
Capital expenditures | 7,615 | 5,379 | ||||
Litigation settlement and judgment expense | 0 | 1,250 | 2,350 | 2,093 | ||
Pension settlement expense | 1,607 | 1,607 | ||||
Restructuring charges | 0 | 0 | 41 | 0 | ||
Corporate, Non-Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Operating income (loss) | (6,911) | (4,904) | (13,716) | (9,843) | ||
Equity in earnings from real estate ventures | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 428 | 435 | 870 | 872 | ||
Capital expenditures | 26 | 0 | ||||
Tobacco | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 255,498 | 254,890 | 476,513 | 482,975 | |
Restructuring charges | 41 | |||||
Tobacco | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 255,498 | 254,890 | 476,513 | 482,975 | ||
Operating income (loss) | 66,016 | 56,215 | 127,499 | 105,885 | ||
Equity in earnings from real estate ventures | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 2,499 | 2,931 | 4,939 | 5,867 | ||
Capital expenditures | 3,716 | 2,350 | ||||
E-Cigarettes | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 10 | 261 | 48 | 680 | ||
E-Cigarettes | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 10 | 261 | 48 | 680 | ||
Operating income (loss) | (91) | (2,400) | (284) | (5,564) | ||
Equity in earnings from real estate ventures | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Capital expenditures | 0 | 0 | ||||
Real Estate | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 182,765 | 161,022 | 342,512 | 293,278 | ||
Real Estate | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 182,765 | 161,022 | 342,512 | 293,278 | ||
Operating income (loss) | 11,706 | 6,892 | 19,380 | 9,043 | ||
Equity in earnings from real estate ventures | 2,813 | 1,856 | 2,306 | 2,194 | ||
Depreciation and amortization | $ 2,943 | $ 3,076 | 5,225 | 5,984 | ||
Capital expenditures | $ 3,873 | $ 3,029 | ||||
|
Condensed Consolidating Financial Information (Narrative) (Details) - 7.75% Senior Secured Notes Due 2021 [Member] - Senior Notes |
6 Months Ended | |
---|---|---|
Jun. 30, 2016
USD ($)
|
May 09, 2016
USD ($)
|
|
Condensed Financial Statements, Captions [Line Items] | ||
Principal amount | $ 835,000,000 | $ 235,000,000 |
Interest rate | 7.75% | |
Indenture threshold for earnings for payment of dividends (less than) | $ 75,000,000 | |
Leverage ratio requirement | 3.0 | |
Secured leverage ratio requirement | 1.5 |
Condensed Consolidating Financial Information (Balance Sheets) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Current assets: | ||||
Cash and cash equivalents | $ 474,738 | $ 240,368 | $ 238,323 | $ 326,365 |
Investment securities available for sale | 160,854 | 181,976 | ||
Accounts receivable - trade, net | 25,076 | 23,889 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 92,735 | 86,516 | ||
Income taxes receivable, net | 218 | 2,841 | ||
Restricted assets | 9,437 | 9,195 | ||
Other current assets | 40,163 | 38,954 | ||
Total current assets | 803,221 | 583,739 | ||
Property, plant and equipment, net | 71,904 | 75,632 | ||
Investments in real estate, net | 23,328 | 23,318 | ||
Long-term investments | 59,369 | 62,726 | ||
Investments in real estate ventures | 206,139 | 217,168 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Restricted assets | 9,386 | 12,303 | ||
Goodwill and other intangible assets, net | 262,866 | 263,959 | ||
Prepaid pension costs | 21,302 | 20,650 | ||
Other assets | 21,985 | 21,120 | ||
Total assets | 1,479,500 | 1,280,615 | ||
Current liabilities: | ||||
Current portion of notes payable and long-term debt | 16,615 | 8,919 | ||
Current portion of employee benefits | 914 | 915 | ||
Intercompany payables | 0 | 0 | ||
Income taxes payable, net | 0 | 96 | ||
Litigation accruals and current payments due under the Master Settlement Agreement | 60,486 | 52,145 | ||
Other current liabilities | 140,388 | 154,217 | ||
Total current liabilities | 218,403 | 216,292 | ||
Notes payable, long-term debt and other obligations, less current portion | 1,110,731 | 856,108 | ||
Fair value of derivatives embedded within convertible debt | 126,932 | 144,042 | ||
Non-current employee benefits | 55,308 | 55,055 | ||
Deferred income taxes, net | 87,914 | 79,429 | ||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 55,648 | 51,850 | ||
Total liabilities | 1,654,936 | 1,402,776 | ||
Commitments and contingencies (Note 7) | ||||
Total Vector Group Ltd. stockholders' deficiency | (257,525) | (206,047) | ||
Non-controlling interest | 82,089 | 83,886 | ||
Total stockholders' deficiency | (175,436) | (122,161) | ||
Total liabilities and stockholders' deficiency | 1,479,500 | 1,280,615 | ||
Consolidating Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Investment securities available for sale | 0 | 0 | ||
Accounts receivable - trade, net | 0 | 0 | ||
Intercompany receivables | (16,435) | (11,293) | ||
Inventories | 0 | 0 | ||
Income taxes receivable, net | (12,124) | (5,372) | ||
Restricted assets | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (28,559) | (16,665) | ||
Property, plant and equipment, net | 0 | 0 | ||
Investments in real estate, net | 0 | 0 | ||
Long-term investments | 0 | 0 | ||
Investments in real estate ventures | 0 | 0 | ||
Investments in consolidated subsidiaries | (517,365) | (532,501) | ||
Restricted assets | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Prepaid pension costs | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | (545,924) | (549,166) | ||
Current liabilities: | ||||
Current portion of notes payable and long-term debt | 0 | 0 | ||
Current portion of employee benefits | 0 | 0 | ||
Intercompany payables | (16,435) | (11,293) | ||
Income taxes payable, net | (12,124) | (5,372) | ||
Litigation accruals and current payments due under the Master Settlement Agreement | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (28,559) | (16,665) | ||
Notes payable, long-term debt and other obligations, less current portion | 0 | 0 | ||
Fair value of derivatives embedded within convertible debt | 0 | 0 | ||
Non-current employee benefits | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 0 | 0 | ||
Total liabilities | (28,559) | (16,665) | ||
Commitments and contingencies (Note 7) | ||||
Total Vector Group Ltd. stockholders' deficiency | (517,365) | (532,501) | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' deficiency | (517,365) | (532,501) | ||
Total liabilities and stockholders' deficiency | (545,924) | (549,166) | ||
Parent/Issuer [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 335,034 | 111,470 | 111,503 | 211,751 |
Investment securities available for sale | 120,283 | 131,810 | ||
Accounts receivable - trade, net | 0 | 0 | ||
Intercompany receivables | 16,435 | 11,293 | ||
Inventories | 0 | 0 | ||
Income taxes receivable, net | 12,342 | 8,213 | ||
Restricted assets | 0 | 0 | ||
Other current assets | 618 | 575 | ||
Total current assets | 484,712 | 263,361 | ||
Property, plant and equipment, net | 1,452 | 1,711 | ||
Investments in real estate, net | 0 | 0 | ||
Long-term investments | 58,414 | 61,747 | ||
Investments in real estate ventures | 0 | 0 | ||
Investments in consolidated subsidiaries | 517,365 | 532,501 | ||
Restricted assets | 1,720 | 1,713 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Prepaid pension costs | 0 | 0 | ||
Other assets | 7,621 | 7,582 | ||
Total assets | 1,071,284 | 868,615 | ||
Current liabilities: | ||||
Current portion of notes payable and long-term debt | 0 | 0 | ||
Current portion of employee benefits | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Income taxes payable, net | 0 | 0 | ||
Litigation accruals and current payments due under the Master Settlement Agreement | 0 | 0 | ||
Other current liabilities | 44,520 | 38,140 | ||
Total current liabilities | 44,520 | 38,140 | ||
Notes payable, long-term debt and other obligations, less current portion | 1,104,171 | 848,368 | ||
Fair value of derivatives embedded within convertible debt | 126,932 | 144,042 | ||
Non-current employee benefits | 40,075 | 39,244 | ||
Deferred income taxes, net | 7,826 | 2,675 | ||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 5,285 | 2,193 | ||
Total liabilities | 1,328,809 | 1,074,662 | ||
Commitments and contingencies (Note 7) | ||||
Total Vector Group Ltd. stockholders' deficiency | (257,525) | (206,047) | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' deficiency | (257,525) | (206,047) | ||
Total liabilities and stockholders' deficiency | 1,071,284 | 868,615 | ||
Subsidiary Guarantors [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 32,246 | 12,375 | 24,020 | 9,724 |
Investment securities available for sale | 40,571 | 50,166 | ||
Accounts receivable - trade, net | 15,015 | 15,913 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 92,735 | 86,516 | ||
Income taxes receivable, net | 0 | 0 | ||
Restricted assets | 8,523 | 7,781 | ||
Other current assets | 3,794 | 3,747 | ||
Total current assets | 192,884 | 176,498 | ||
Property, plant and equipment, net | 51,122 | 54,097 | ||
Investments in real estate, net | 0 | 0 | ||
Long-term investments | 454 | 478 | ||
Investments in real estate ventures | 0 | 0 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Restricted assets | 7,666 | 10,590 | ||
Goodwill and other intangible assets, net | 107,511 | 107,511 | ||
Prepaid pension costs | 21,302 | 20,650 | ||
Other assets | 12,002 | 11,769 | ||
Total assets | 392,941 | 381,593 | ||
Current liabilities: | ||||
Current portion of notes payable and long-term debt | 16,523 | 8,733 | ||
Current portion of employee benefits | 914 | 915 | ||
Intercompany payables | 585 | 586 | ||
Income taxes payable, net | 11,501 | 5,464 | ||
Litigation accruals and current payments due under the Master Settlement Agreement | 60,486 | 52,145 | ||
Other current liabilities | 55,350 | 74,083 | ||
Total current liabilities | 145,359 | 141,926 | ||
Notes payable, long-term debt and other obligations, less current portion | 6,338 | 7,519 | ||
Fair value of derivatives embedded within convertible debt | 0 | 0 | ||
Non-current employee benefits | 15,233 | 15,811 | ||
Deferred income taxes, net | 35,138 | 33,791 | ||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 45,010 | 44,982 | ||
Total liabilities | 247,078 | 244,029 | ||
Commitments and contingencies (Note 7) | ||||
Total Vector Group Ltd. stockholders' deficiency | 145,863 | 137,564 | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' deficiency | 145,863 | 137,564 | ||
Total liabilities and stockholders' deficiency | 392,941 | 381,593 | ||
Subsidiary Non-Guarantors [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 107,458 | 116,523 | $ 102,800 | $ 104,890 |
Investment securities available for sale | 0 | 0 | ||
Accounts receivable - trade, net | 10,061 | 7,976 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 0 | 0 | ||
Income taxes receivable, net | 0 | 0 | ||
Restricted assets | 914 | 1,414 | ||
Other current assets | 35,751 | 34,632 | ||
Total current assets | 154,184 | 160,545 | ||
Property, plant and equipment, net | 19,330 | 19,824 | ||
Investments in real estate, net | 23,328 | 23,318 | ||
Long-term investments | 501 | 501 | ||
Investments in real estate ventures | 206,139 | 217,168 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Restricted assets | 0 | 0 | ||
Goodwill and other intangible assets, net | 155,355 | 156,448 | ||
Prepaid pension costs | 0 | 0 | ||
Other assets | 2,362 | 1,769 | ||
Total assets | 561,199 | 579,573 | ||
Current liabilities: | ||||
Current portion of notes payable and long-term debt | 92 | 186 | ||
Current portion of employee benefits | 0 | 0 | ||
Intercompany payables | 15,850 | 10,707 | ||
Income taxes payable, net | 623 | 4 | ||
Litigation accruals and current payments due under the Master Settlement Agreement | 0 | 0 | ||
Other current liabilities | 40,518 | 41,994 | ||
Total current liabilities | 57,083 | 52,891 | ||
Notes payable, long-term debt and other obligations, less current portion | 222 | 221 | ||
Fair value of derivatives embedded within convertible debt | 0 | 0 | ||
Non-current employee benefits | 0 | 0 | ||
Deferred income taxes, net | 44,950 | 42,963 | ||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 5,353 | 4,675 | ||
Total liabilities | 107,608 | 100,750 | ||
Commitments and contingencies (Note 7) | ||||
Total Vector Group Ltd. stockholders' deficiency | 371,502 | 394,937 | ||
Non-controlling interest | 82,089 | 83,886 | ||
Total stockholders' deficiency | 453,591 | 478,823 | ||
Total liabilities and stockholders' deficiency | $ 561,199 | $ 579,573 |
Condensed Consolidating Financial Information (Statements of Operations) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | $ 438,273 | $ 416,173 | $ 819,073 | $ 776,933 |
Expenses: | ||||
Cost of sales | 283,631 | 279,204 | 520,053 | 521,222 |
Operating, selling, administrative and general expenses | 83,922 | 79,916 | 163,750 | 154,097 |
Litigation settlement and judgment expense | 0 | 1,250 | 2,350 | 2,093 |
Management fee expense | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 41 | 0 |
Operating income | 70,720 | 55,803 | 132,879 | 99,521 |
Other income (expenses): | ||||
Interest expense | (36,369) | (31,761) | (67,089) | (63,507) |
Change in fair value of derivatives embedded within convertible debt | 7,416 | 5,256 | 17,110 | 11,716 |
Equity in earnings from real estate ventures | 2,813 | 1,856 | 2,306 | 2,194 |
Equity in earnings (losses) from investments | 1,089 | (2,163) | (582) | (1,551) |
Gain (loss) on sale of investment securities available for sale | 139 | (190) | 706 | 12,839 |
Impairment of investment securities available for sale | (49) | 0 | (4,862) | 0 |
Equity income in consolidated subsidiaries | 0 | 0 | 0 | 0 |
Management fee income | 0 | 0 | 0 | 0 |
Other, net | 581 | 1,821 | 1,628 | 3,758 |
Income before provision for income taxes | 46,340 | 30,622 | 82,096 | 64,970 |
Income tax benefit (expense) | (19,003) | (11,178) | (33,366) | (24,045) |
Net income | 27,337 | 19,444 | 48,730 | 40,925 |
Net income attributed to non-controlling interest | (3,322) | (1,837) | (5,377) | (2,097) |
Net income attributed to Vector Group Ltd. | 24,015 | 17,607 | 43,353 | 38,828 |
Comprehensive income attributed to non-controlling interest | (3,322) | (1,837) | (5,377) | (2,097) |
Comprehensive income attributed to Vector Group Ltd. | 23,746 | 17,834 | 43,127 | 44,037 |
Consolidating Adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | (140) | (140) | (229) | (259) |
Expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Operating, selling, administrative and general expenses | (140) | (140) | (229) | (259) |
Litigation settlement and judgment expense | 0 | 0 | 0 | |
Management fee expense | (2,663) | (2,563) | (5,325) | (5,125) |
Restructuring charges | 0 | |||
Operating income | 2,663 | 2,563 | 5,325 | 5,125 |
Other income (expenses): | ||||
Interest expense | 0 | 0 | 0 | 0 |
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | 0 |
Equity in earnings from real estate ventures | 0 | 0 | 0 | 0 |
Equity in earnings (losses) from investments | 0 | 0 | 0 | 0 |
Gain (loss) on sale of investment securities available for sale | 0 | 0 | 0 | 0 |
Impairment of investment securities available for sale | 0 | 0 | ||
Equity income in consolidated subsidiaries | (46,441) | (35,745) | (82,051) | (71,744) |
Management fee income | (2,663) | (2,563) | (5,325) | (5,125) |
Other, net | 0 | 0 | 0 | 0 |
Income before provision for income taxes | (46,441) | (35,745) | (82,051) | (71,744) |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Net income | (46,441) | (35,745) | (82,051) | (71,744) |
Net income attributed to non-controlling interest | 0 | 0 | 0 | 0 |
Net income attributed to Vector Group Ltd. | (46,441) | (35,745) | (82,051) | (71,744) |
Comprehensive income attributed to non-controlling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributed to Vector Group Ltd. | (46,320) | (35,201) | (82,073) | (68,918) |
Parent/Issuer [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Operating, selling, administrative and general expenses | 9,019 | 7,174 | 18,215 | 14,368 |
Litigation settlement and judgment expense | 0 | 0 | 0 | |
Management fee expense | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | |||
Operating income | (9,019) | (7,174) | (18,215) | (14,368) |
Other income (expenses): | ||||
Interest expense | (35,522) | (30,880) | (65,280) | (61,634) |
Change in fair value of derivatives embedded within convertible debt | 7,416 | 5,256 | 17,110 | 11,716 |
Equity in earnings from real estate ventures | 0 | 0 | 0 | 0 |
Equity in earnings (losses) from investments | 1,097 | (2,147) | (558) | (1,543) |
Gain (loss) on sale of investment securities available for sale | 139 | (190) | 315 | (336) |
Impairment of investment securities available for sale | (49) | (90) | ||
Equity income in consolidated subsidiaries | 46,441 | 35,745 | 82,051 | 71,744 |
Management fee income | 2,663 | 2,563 | 5,325 | 5,125 |
Other, net | (93) | 1,192 | 307 | 2,257 |
Income before provision for income taxes | 13,073 | 4,365 | 20,965 | 12,961 |
Income tax benefit (expense) | 10,942 | 13,242 | 22,388 | 25,867 |
Net income | 24,015 | 17,607 | 43,353 | 38,828 |
Net income attributed to non-controlling interest | 0 | 0 | 0 | 0 |
Net income attributed to Vector Group Ltd. | 24,015 | 17,607 | 43,353 | 38,828 |
Comprehensive income attributed to non-controlling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributed to Vector Group Ltd. | 23,746 | 17,834 | 43,127 | 44,037 |
Subsidiary Guarantors [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 255,648 | 255,291 | 476,790 | 483,914 |
Expenses: | ||||
Cost of sales | 168,614 | 175,334 | 305,358 | 332,994 |
Operating, selling, administrative and general expenses | 18,943 | 22,555 | 37,216 | 43,892 |
Litigation settlement and judgment expense | 1,250 | 2,350 | 2,093 | |
Management fee expense | 2,663 | 2,563 | 5,325 | 5,125 |
Restructuring charges | 41 | |||
Operating income | 65,428 | 53,589 | 126,500 | 99,810 |
Other income (expenses): | ||||
Interest expense | (843) | (879) | (1,802) | (1,870) |
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | 0 |
Equity in earnings from real estate ventures | 0 | 0 | 0 | 0 |
Equity in earnings (losses) from investments | (8) | (16) | (24) | (8) |
Gain (loss) on sale of investment securities available for sale | 0 | 0 | 391 | 13,175 |
Impairment of investment securities available for sale | 0 | (4,772) | ||
Equity income in consolidated subsidiaries | 0 | 0 | 0 | 0 |
Management fee income | 0 | 0 | 0 | 0 |
Other, net | 244 | 200 | 481 | 520 |
Income before provision for income taxes | 64,821 | 52,894 | 120,774 | 111,627 |
Income tax benefit (expense) | (24,907) | (21,219) | (48,293) | (45,403) |
Net income | 39,914 | 31,675 | 72,481 | 66,224 |
Net income attributed to non-controlling interest | 0 | 0 | 0 | 0 |
Net income attributed to Vector Group Ltd. | 39,914 | 31,675 | 72,481 | 66,224 |
Comprehensive income attributed to non-controlling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributed to Vector Group Ltd. | 39,793 | 31,131 | 72,503 | 63,398 |
Subsidiary Non-Guarantors [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 182,765 | 161,022 | 342,512 | 293,278 |
Expenses: | ||||
Cost of sales | 115,017 | 103,870 | 214,695 | 188,228 |
Operating, selling, administrative and general expenses | 56,100 | 50,327 | 108,548 | 96,096 |
Litigation settlement and judgment expense | 0 | 0 | 0 | |
Management fee expense | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | |||
Operating income | 11,648 | 6,825 | 19,269 | 8,954 |
Other income (expenses): | ||||
Interest expense | (4) | (2) | (7) | (3) |
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | 0 |
Equity in earnings from real estate ventures | 2,813 | 1,856 | 2,306 | 2,194 |
Equity in earnings (losses) from investments | 0 | 0 | 0 | 0 |
Gain (loss) on sale of investment securities available for sale | 0 | 0 | 0 | 0 |
Impairment of investment securities available for sale | 0 | 0 | ||
Equity income in consolidated subsidiaries | 0 | 0 | 0 | 0 |
Management fee income | 0 | 0 | 0 | 0 |
Other, net | 430 | 429 | 840 | 981 |
Income before provision for income taxes | 14,887 | 9,108 | 22,408 | 12,126 |
Income tax benefit (expense) | (5,038) | (3,201) | (7,461) | (4,509) |
Net income | 9,849 | 5,907 | 14,947 | 7,617 |
Net income attributed to non-controlling interest | (3,322) | (1,837) | (5,377) | (2,097) |
Net income attributed to Vector Group Ltd. | 6,527 | 4,070 | 9,570 | 5,520 |
Comprehensive income attributed to non-controlling interest | (3,322) | (1,837) | (5,377) | (2,097) |
Comprehensive income attributed to Vector Group Ltd. | $ 6,527 | $ 4,070 | $ 9,570 | $ 5,520 |
Condensed Consolidating Financial Information (Statements of Cash Flows) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $ 78,825 | $ 83,885 |
Cash flows from investing activities: | ||
Sale of investment securities | 67,033 | 118,261 |
Maturities of investment securities | 343 | 1,737 |
Purchase of investment securities | (56,691) | (113,595) |
Purchase of long-term investments | (50) | (5,000) |
Proceeds from sale or liquidation of long-term investments | 1,000 | 1,254 |
Investments in real estate ventures | (11,806) | (34,857) |
Distributions from investments in real estate ventures | 17,983 | 0 |
Increase in cash surrender value of life insurance policies | (393) | (1,118) |
Decrease (increase) in restricted assets | 2,674 | (7,934) |
Issuance of notes receivable | 0 | (4,410) |
Investments in subsidiaries | 0 | 0 |
Proceeds from sale of preferred securities | 0 | 1,000 |
Proceeds from sale of fixed assets | 5 | 3 |
Capital expenditures | (7,615) | (5,379) |
Pay downs of investment securities | 4,926 | 3,530 |
Investments in real estate, net | (81) | (12,502) |
Net cash provided by (used in) investing activities | 17,328 | (59,010) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 243,282 | 22 |
Deferred financing costs | (6,600) | (625) |
Repayments of debt | (2,917) | (3,374) |
Borrowings under revolver | 89,695 | 126,727 |
Repayments on revolver | (80,223) | (144,492) |
Capital contributions received | 0 | 0 |
Intercompany dividends paid | 0 | 0 |
Dividends and distributions on common stock | (97,846) | (92,778) |
Contributions from non-controlling interest | 248 | 0 |
Distributions to non-controlling interest | (7,422) | 0 |
Proceeds from exercise of Vector options | 0 | 1,219 |
Tax benefit of options exercised | 0 | 384 |
Net cash provided by (used in) financing activities | 138,217 | (112,917) |
Net increase (decrease) in cash and cash equivalents | 234,370 | (88,042) |
Cash and cash equivalents, beginning of period | 240,368 | 326,365 |
Cash and cash equivalents, end of period | 474,738 | 238,323 |
Consolidating Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | (99,040) | (71,010) |
Cash flows from investing activities: | ||
Sale of investment securities | 0 | 0 |
Maturities of investment securities | 0 | 0 |
Purchase of investment securities | 0 | 0 |
Purchase of long-term investments | 0 | 0 |
Proceeds from sale or liquidation of long-term investments | 0 | 0 |
Investments in real estate ventures | 0 | 0 |
Distributions from investments in real estate ventures | 0 | |
Increase in cash surrender value of life insurance policies | 0 | 0 |
Decrease (increase) in restricted assets | 0 | 0 |
Issuance of notes receivable | 0 | |
Investments in subsidiaries | 987 | 42,808 |
Proceeds from sale of fixed assets | 0 | 0 |
Capital expenditures | 0 | 0 |
Pay downs of investment securities | 0 | 0 |
Investments in real estate, net | 0 | 0 |
Net cash provided by (used in) investing activities | 987 | 42,808 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 0 |
Deferred financing costs | 0 | 0 |
Repayments of debt | 0 | 0 |
Borrowings under revolver | 0 | 0 |
Repayments on revolver | 0 | 0 |
Capital contributions received | (987) | (42,808) |
Intercompany dividends paid | 99,040 | 71,010 |
Dividends and distributions on common stock | 0 | 0 |
Contributions from non-controlling interest | 0 | |
Distributions to non-controlling interest | 0 | |
Proceeds from exercise of Vector options | 0 | |
Tax benefit of options exercised | 0 | |
Net cash provided by (used in) financing activities | 98,053 | 28,202 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Parent/Issuer [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 73,915 | 42,679 |
Cash flows from investing activities: | ||
Sale of investment securities | 62,312 | 103,846 |
Maturities of investment securities | 343 | 1,737 |
Purchase of investment securities | (56,691) | (112,119) |
Purchase of long-term investments | 0 | (5,000) |
Proceeds from sale or liquidation of long-term investments | 1,000 | 1,106 |
Investments in real estate ventures | 0 | 0 |
Distributions from investments in real estate ventures | 0 | |
Increase in cash surrender value of life insurance policies | 0 | (717) |
Decrease (increase) in restricted assets | (7) | (1,327) |
Issuance of notes receivable | 0 | |
Investments in subsidiaries | (987) | (42,808) |
Proceeds from sale of preferred securities | 0 | |
Proceeds from sale of fixed assets | 0 | 0 |
Capital expenditures | (26) | 0 |
Pay downs of investment securities | 4,926 | 3,530 |
Investments in real estate, net | 0 | 0 |
Net cash provided by (used in) investing activities | 10,870 | (51,752) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 243,225 | 0 |
Deferred financing costs | (6,600) | 0 |
Repayments of debt | 0 | 0 |
Borrowings under revolver | 0 | 0 |
Repayments on revolver | 0 | 0 |
Capital contributions received | 0 | 0 |
Intercompany dividends paid | 0 | 0 |
Dividends and distributions on common stock | (97,846) | (92,778) |
Contributions from non-controlling interest | 0 | |
Distributions to non-controlling interest | 0 | |
Proceeds from exercise of Vector options | 1,219 | |
Tax benefit of options exercised | 384 | |
Net cash provided by (used in) financing activities | 138,779 | (91,175) |
Net increase (decrease) in cash and cash equivalents | 223,564 | (100,248) |
Cash and cash equivalents, beginning of period | 111,470 | 211,751 |
Cash and cash equivalents, end of period | 335,034 | 111,503 |
Subsidiary Guarantors [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 75,513 | 99,159 |
Cash flows from investing activities: | ||
Sale of investment securities | 4,721 | 14,415 |
Maturities of investment securities | 0 | 0 |
Purchase of investment securities | 0 | (1,476) |
Purchase of long-term investments | 0 | 0 |
Proceeds from sale or liquidation of long-term investments | 0 | 0 |
Investments in real estate ventures | 0 | 0 |
Distributions from investments in real estate ventures | 0 | |
Increase in cash surrender value of life insurance policies | (393) | (401) |
Decrease (increase) in restricted assets | 2,181 | (6,607) |
Issuance of notes receivable | 0 | |
Investments in subsidiaries | 0 | 0 |
Proceeds from sale of preferred securities | 0 | |
Proceeds from sale of fixed assets | 4 | 3 |
Capital expenditures | (3,716) | (2,350) |
Pay downs of investment securities | 0 | 0 |
Investments in real estate, net | 0 | 0 |
Net cash provided by (used in) investing activities | 2,797 | 3,584 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 0 | 22 |
Deferred financing costs | 0 | (625) |
Repayments of debt | (2,863) | (3,254) |
Borrowings under revolver | 89,695 | 126,727 |
Repayments on revolver | (80,223) | (144,492) |
Capital contributions received | 600 | 2,250 |
Intercompany dividends paid | (65,648) | (69,075) |
Dividends and distributions on common stock | 0 | 0 |
Contributions from non-controlling interest | 0 | |
Distributions to non-controlling interest | 0 | |
Proceeds from exercise of Vector options | 0 | |
Tax benefit of options exercised | 0 | |
Net cash provided by (used in) financing activities | (58,439) | (88,447) |
Net increase (decrease) in cash and cash equivalents | 19,871 | 14,296 |
Cash and cash equivalents, beginning of period | 12,375 | 9,724 |
Cash and cash equivalents, end of period | 32,246 | 24,020 |
Subsidiary Non-Guarantors [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 28,437 | 13,057 |
Cash flows from investing activities: | ||
Sale of investment securities | 0 | 0 |
Maturities of investment securities | 0 | 0 |
Purchase of investment securities | 0 | 0 |
Purchase of long-term investments | (50) | 0 |
Proceeds from sale or liquidation of long-term investments | 0 | 148 |
Investments in real estate ventures | (11,806) | (34,857) |
Distributions from investments in real estate ventures | 17,983 | |
Increase in cash surrender value of life insurance policies | 0 | 0 |
Decrease (increase) in restricted assets | 500 | 0 |
Issuance of notes receivable | (4,410) | |
Investments in subsidiaries | 0 | 0 |
Proceeds from sale of preferred securities | 1,000 | |
Proceeds from sale of fixed assets | 1 | 0 |
Capital expenditures | (3,873) | (3,029) |
Pay downs of investment securities | 0 | 0 |
Investments in real estate, net | (81) | (12,502) |
Net cash provided by (used in) investing activities | 2,674 | (53,650) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 57 | 0 |
Deferred financing costs | 0 | 0 |
Repayments of debt | (54) | (120) |
Borrowings under revolver | 0 | 0 |
Repayments on revolver | 0 | 0 |
Capital contributions received | 387 | 40,558 |
Intercompany dividends paid | (33,392) | (1,935) |
Dividends and distributions on common stock | 0 | 0 |
Contributions from non-controlling interest | 248 | |
Distributions to non-controlling interest | (7,422) | |
Proceeds from exercise of Vector options | 0 | |
Tax benefit of options exercised | 0 | |
Net cash provided by (used in) financing activities | (40,176) | 38,503 |
Net increase (decrease) in cash and cash equivalents | (9,065) | (2,090) |
Cash and cash equivalents, beginning of period | 116,523 | 104,890 |
Cash and cash equivalents, end of period | $ 107,458 | $ 102,800 |
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