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Condensed Consolidating Financial Information
12 Months Ended
Dec. 31, 2016
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 had on December 31, 2016, outstanding $835,000 principal amount of its 7.75% Senior Secured Notes due 2021 that were 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 9.) 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 December 31, 2016 and 2015 and the related Condensed Consolidating Statements of Operations and Cash Flows for the years ended December 31, 2016, 2015 and 2014 of Vector Group. (Parent/Issuer), the guarantor subsidiaries (Subsidiary Guarantors) and the subsidiaries that are not guarantors (Subsidiary Non-Guarantors).

Subsequent to year end, the Company issued $850,000 of its 6.125% Senior Secured Notes due 2025 in a private offering to qualified institutional investors in accordance with Rule 144A of the Securities Act of 1933 on January 27, 2017. The Company is using the net proceeds of the issuance to redeem $835,000 of its 7.75% Senior Secured Notes.

The Company and the guarantors have filed a shelf registration statement for the offering of debt securities on a delayed or continuous basis and the Company is filing this condensed consolidating financial information in connection therewith.
CONDENSED CONSOLIDATING BALANCE SHEETS
 
 
 
December 31, 2016
 
 
 
 
 
 
 
Subsidiary
 
 
 
Consolidated
 
Parent/
 
Subsidiary
 
Non-
 
Consolidating
 
Vector Group
 
Issuer
 
Guarantors
 
Guarantors
 
Adjustments
 
Ltd.
ASSETS:
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
279,815

 
$
14,798

 
$
98,917

 
$

 
$
393,530

Investment securities available for sale
121,016

 
35,887

 

 

 
156,903

Accounts receivable - trade, net

 
11,775

 
7,026

 

 
18,801

Intercompany receivables
22,789

 

 

 
(22,789
)
 

Inventories

 
89,834

 

 

 
89,834

Income taxes receivable, net
18,387

 

 

 
(2,277
)
 
16,110

Restricted assets

 
6,416

 
914

 

 
7,330

Other current assets
517

 
4,428

 
18,010

 

 
22,955

Total current assets
442,524

 
163,138

 
124,867

 
(25,066
)
 
705,463

Property, plant and equipment, net
1,134

 
48,314

 
31,000

 

 
80,448

Investments in real estate, net

 

 
23,640

 

 
23,640

Long-term investments
52,308

 
388

 
501

 

 
53,197

Investments in real estate ventures

 

 
221,258

 

 
221,258

Investments in consolidated subsidiaries
501,659

 

 

 
(501,659
)
 

Restricted assets
1,728

 
2,258

 

 

 
3,986

Goodwill and other intangible assets, net

 
107,511

 
154,407

 

 
261,918

Prepaid pension costs

 
22,273

 

 

 
22,273

Other assets
7,534

 
12,118

 
12,200

 

 
31,852

Total assets
$
1,006,887

 
$
356,000

 
$
567,873

 
$
(526,725
)
 
$
1,404,035

LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Current portion of notes payable and long-term debt
$

 
$
39,333

 
$
175

 
$

 
$
39,508

Current portion of employee benefits

 
937

 

 

 
937

Intercompany payables

 
24

 
22,765

 
(22,789
)
 

Income taxes payable, net

 
1,089

 
1,188

 
(2,277
)
 

Litigation accruals and current payments due under the Master Settlement Agreement

 
19,851

 

 

 
19,851

Other current liabilities
47,968

 
49,492

 
38,392

 

 
135,852

Total current liabilities
47,968

 
110,726

 
62,520

 
(25,066
)
 
196,148

Notes payable, long-term debt and other obligations, less current portion
1,127,180

 
5,372

 
391

 

 
1,132,943

Fair value of derivatives embedded within convertible debt
112,332

 

 

 

 
112,332

Non-current employee benefits
42,818

 
16,140

 

 

 
58,958

Deferred income taxes, net
7,420

 
40,136

 
45,529

 

 
93,085

Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement
1,169

 
49,861

 
12,811

 

 
63,841

Total liabilities
1,338,887

 
222,235

 
121,251

 
(25,066
)
 
1,657,307

Commitments and contingencies


 


 


 


 


Stockholders' (deficiency) equity attributed to Vector Group Ltd.
(332,000
)
 
133,765

 
367,894

 
(501,659
)
 
(332,000
)
Non-controlling interest

 

 
78,728

 

 
78,728

Total stockholders' (deficiency) equity
(332,000
)
 
133,765

 
446,622

 
(501,659
)
 
(253,272
)
Total liabilities and stockholders' deficiency
$
1,006,887

 
$
356,000

 
$
567,873

 
$
(526,725
)
 
$
1,404,035


CONDENSED CONSOLIDATING BALANCE SHEETS

 
 
 
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

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
Subsidiary
 
 
 
Consolidated
 
  Parent/  
 
Subsidiary
 
Non-
 
Consolidating
 
Vector Group
 
  Issuer  
 
Guarantors
 
Guarantors
 
Adjustments
 
        Ltd.        
Revenues
$

 
$
1,011,322

 
$
680,105

 
$
(478
)
 
$
1,690,949

Expenses:
 
 
 
 
 
 
 
 
 
Cost of sales

 
672,515

 
424,829

 

 
1,097,344

Operating, selling, administrative and general expenses
36,242

 
72,359

 
232,444

 
(478
)
 
340,567

Litigation settlement and judgment expense

 
20,000

 

 

 
20,000

Management fee expense

 
10,649

 

 
(10,649
)
 

Restructuring charges

 
41

 

 

 
41

Operating (loss) income
(36,242
)
 
235,758

 
22,832

 
10,649

 
232,997

Other income (expenses):
 
 
 
 
 
 
 
 
 
Interest expense
(139,524
)
 
(3,438
)
 
(20
)
 

 
(142,982
)
Change in fair value of derivatives embedded within convertible debt
31,710

 

 

 

 
31,710

Equity in earnings from real estate ventures

 

 
5,200

 

 
5,200

Equity in losses from investments
(2,664
)
 
(90
)
 

 

 
(2,754
)
Gain on sale of investment securities available for sale
376

 
2,531

 

 

 
2,907

Impairment of investment securities available for sale
(609
)
 
(4,772
)
 

 

 
(5,381
)
Equity in earnings in consolidated subsidiaries
161,471

 

 

 
(161,471
)
 

Management fee income
10,649

 

 

 
(10,649
)
 

Other, net
2,780

 
1,013

 
939

 

 
4,732

Income before provision for income taxes
27,947

 
231,002

 
28,951

 
(161,471
)
 
126,429

Income tax benefit (expense)
43,180

 
(83,008
)
 
(9,335
)
 

 
(49,163
)
Net income
71,127

 
147,994

 
19,616

 
(161,471
)
 
77,266

Net income attributed to non-controlling interest

 

 
(6,139
)
 

 
(6,139
)
Net income attributed to Vector Group Ltd.
$
71,127

 
$
147,994

 
$
13,477

 
$
(161,471
)
 
$
71,127

Comprehensive income attributed to non-controlling interest
$

 
$

 
$
(6,139
)
 
$

 
$
(6,139
)
Comprehensive income attributed to Vector Group Ltd.
$
68,195

 
$
146,841

 
$
13,477

 
$
(160,318
)
 
$
68,195



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
Subsidiary
 
 
 
Consolidated
 
  Parent/  
 
Subsidiary
 
Non-
 
Consolidating
 
Vector Group
 
  Issuer  
 
Guarantors
 
Guarantors
 
Adjustments
 
        Ltd.        
Revenues
$

 
$
1,016,279

 
$
641,406

 
$
(488
)
 
$
1,657,197

Expenses:
 
 
 
 
 
 
 
 
 
Cost of sales

 
699,440

 
410,287

 

 
1,109,727

Operating, selling, administrative and general expenses
29,237

 
84,437

 
207,035

 
(488
)
 
320,221

Litigation settlement and judgment expense

 
20,072

 

 

 
20,072

Management fee expense

 
10,250

 

 
(10,250
)
 

Restructuring charges

 
7,257

 

 

 
7,257

Operating (loss) income
(29,237
)
 
194,823

 
24,084

 
10,250

 
199,920

Other income (expenses):
 
 
 
 
 
 
 
 
 
Interest expense
(115,731
)
 
(4,953
)
 
(7
)
 

 
(120,691
)
Change in fair value of derivatives embedded within convertible debt
24,455

 

 

 

 
24,455

Equity in earnings from real estate ventures

 

 
2,001

 

 
2,001

Equity in losses from investments
(2,640
)
 
(41
)
 

 

 
(2,681
)
(Loss) gain on sale of investment securities available for sale
(2,037
)
 
13,175

 

 

 
11,138

Impairment of investment securities available for sale
(4,859
)
 
(7,987
)
 

 

 
(12,846
)
Equity in earnings in consolidated subsidiaries
125,042

 

 

 
(125,042
)
 

Management fee income
10,250

 

 

 
(10,250
)
 

Other, net
4,016

 
639

 
1,754

 

 
6,409

Income before provision for income taxes
9,259

 
195,656

 
27,832

 
(125,042
)
 
107,705

Income tax benefit (expense)
49,939

 
(82,282
)
 
(8,890
)
 

 
(41,233
)
Net income
59,198

 
113,374

 
18,942

 
(125,042
)
 
66,472

Net income attributed to non-controlling interest

 

 
(7,274
)
 

 
(7,274
)
Net income attributed to Vector Group Ltd.
$
59,198

 
$
113,374

 
$
11,668

 
$
(125,042
)
 
$
59,198

Comprehensive income attributed to non-controlling interest
$

 
$

 
$
(7,274
)
 
$

 
$
(7,274
)
Comprehensive income attributed to Vector Group Ltd.
$
52,228

 
$
105,456

 
$
11,668

 
$
(117,124
)
 
$
52,228



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

 
Year Ended December 31, 2014
 
Parent/
Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non-
Guarantors
 
Consolidating
Adjustments
 
Consolidated
Vector Group
Ltd.
Revenues
$

 
$
1,030,157

 
$
561,467

 
$
(309
)
 
$
1,591,315

Expenses:
 
 
 
 
 
 
 
 
 

Cost of sales

 
743,032

 
354,028

 

 
1,097,060

Operating, selling, administrative and general expenses
24,262

 
90,208

 
165,181

 
(309
)
 
279,342

Litigation settlement and judgment expense

 
2,475

 

 

 
2,475

Management fee expense

 
9,870

 

 
(9,870
)
 

Operating (loss) income
(24,262
)
 
184,572

 
42,258

 
9,870

 
212,438

Other income (expenses):
 

 
 

 
 

 
 

 
 

Interest expense
(157,321
)
 
(4,241
)
 
(41
)
 
612

 
(160,991
)
Changes in fair value of derivatives embedded within convertible debt
19,409

 

 

 

 
19,409

Acceleration of interest expense related to debt conversion
(5,205
)
 

 

 

 
(5,205
)
Equity in earnings from real estate ventures

 

 
4,103

 

 
4,103

Loss on sale of investment securities available for sale
(11
)
 

 

 

 
(11
)
Equity in earnings from investments
3,122

 
18

 

 

 
3,140

Equity in earnings in consolidated subsidiaries
124,001

 

 

 
(124,001
)
 

Management fee income
9,870

 

 

 
(9,870
)
 

Other, net
4,178

 
1,044

 
4,786

 
(612
)
 
9,396

(Loss) income before provision for income taxes
(26,219
)
 
181,393

 
51,106

 
(124,001
)
 
82,279

Income tax benefit (expense)
63,064

 
(78,801
)
 
(17,428
)
 

 
(33,165
)
Net income
36,845

 
102,592

 
33,678

 
(124,001
)
 
49,114

Net loss attributed to non-controlling interest

 

 
(12,258
)
 

 
(12,258
)
Net income attributed to Vector Group Ltd.
$
36,845

 
$
102,592

 
$
21,420

 
$
(124,001
)
 
$
36,856

Comprehensive income attributed to non-controlling interest
$

 
$

 
$
(12,258
)
 
$

 
$
(12,258
)
Comprehensive income attributed to Vector Group Ltd.
$
34,922

 
$
102,536

 
$
21,420

 
$
(123,956
)
 
$
34,922

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
Subsidiary
 
 
 
Consolidated
 
  Parent/  
 
Subsidiary
 
Non-
 
Consolidating
 
Vector Group
 
Issuer   
 
Guarantors
 
Guarantors
 
Adjustments
 
Ltd.
Net cash provided by operating activities
$
135,820

 
$
112,562

 
$
60,640

 
$
(211,386
)
 
$
97,636

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Sale of investment securities
105,815

 
10,255

 

 

 
116,070

Maturities of investment securities
10,822

 

 

 

 
10,822

Purchase of investment securities
(117,211
)
 

 

 

 
(117,211
)
Proceeds from sale or liquidation of long-term investments
4,552

 

 

 

 
4,552

Purchase of long-term investments

 

 
(50
)
 

 
(50
)
Investments in real estate ventures

 

 
(44,107
)
 

 
(44,107
)
Distributions from real estate ventures

 

 
33,204

 

 
33,204

Increase in cash surrender value of life insurance policies

 
(484
)
 

 

 
(484
)
(Increase) decrease in restricted assets
(15
)
 
9,696

 
500

 

 
10,181

Investments in subsidiaries
(19,219
)
 

 

 
19,219

 

Proceeds from sale of fixed assets

 
32

 
13

 

 
45

Purchase of subsidiaries

 

 
(250
)
 

 
(250
)
Repayment of notes receivable

 

 
4,410

 

 
4,410

Capital expenditures
(86
)
 
(6,445
)
 
(20,160
)
 

 
(26,691
)
 Investments in real estate held for sale

 

 
(245
)
 

 
(245
)
 Pay down of investment securities
9,212

 

 

 

 
9,212

Net cash (used in) provided by investing activities
(6,130
)
 
13,054

 
(26,685
)
 
19,219

 
(542
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from issuance of debt
243,225

 

 
395

 

 
243,620

Deferred financing costs
(6,600
)
 

 

 

 
(6,600
)
Repayments of debt

 
(5,226
)
 
(139
)
 

 
(5,365
)
Borrowings under revolver

 
144,294

 

 

 
144,294

Repayments on revolver

 
(110,614
)
 

 

 
(110,614
)
Capital contributions received

 
2,800

 
16,419

 
(19,219
)
 

Intercompany dividends paid

 
(154,447
)
 
(56,939
)
 
211,386

 

Dividends and distributions on common stock
(198,947
)
 

 

 

 
(198,947
)
Distributions to non-controlling interest

 

 
(11,545
)
 

 
(11,545
)
Contributions from non-controlling interest

 

 
248

 

 
248

Proceeds from exercise of Vector options
398

 

 

 

 
398

Tax benefit of options exercised
579

 

 

 

 
579

Net cash provided by (used in) financing activities
38,655

 
(123,193
)
 
(51,561
)
 
192,167

 
56,068

Net increase (decrease) in cash and cash equivalents
168,345

 
2,423

 
(17,606
)
 

 
153,162

Cash and cash equivalents, beginning of year
111,470

 
12,375

 
116,523

 

 
240,368

Cash and cash equivalents, end of year
$
279,815

 
$
14,798

 
$
98,917

 
$

 
$
393,530



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
Subsidiary
 
 
 
Consolidated
 
  Parent/  
 
Subsidiary
 
Non-
 
Consolidating
 
Vector Group
 
Issuer   
 
Guarantors
 
Guarantors
 
Adjustments
 
Ltd.        
Net cash provided by operating activities
$
136,370

 
$
172,065

 
$
45,715

 
$
(209,671
)
 
$
144,479

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Sale of investment securities
256,161

 
14,415

 

 

 
270,576

Maturities of investment securities
5,491

 

 

 

 
5,491

Purchase of investment securities
(207,822
)
 
(6,324
)
 

 

 
(214,146
)
Proceeds from sale of or liquidation of long-term investments
1,106

 

 
197

 

 
1,303

Purchase of long-term investments
(10,000
)
 

 

 

 
(10,000
)
Investments in real estate ventures

 

 
(70,272
)
 

 
(70,272
)
Distributions from real estate ventures

 

 
17,563

 

 
17,563

Increase in cash surrender value of life insurance policies
(1,257
)
 
(485
)
 

 

 
(1,742
)
Increase in restricted assets
(6
)
 
(6,883
)
 

 

 
(6,889
)
Issuance of notes receivable

 

 
(4,410
)
 

 
(4,410
)
Investments in subsidiaries
(103,174
)
 

 

 
103,174

 

Proceeds from sale of fixed assets

 
4

 

 

 
4

Repayments of notes receivable

 

 
4,000

 

 
4,000

Capital expenditures

 
(3,730
)
 
(7,247
)
 

 
(10,977
)
Proceeds from sale of preferred securities

 

 
1,000

 
 
 
1,000

Investments in real estate, net

 

 
(12,603
)
 

 
(12,603
)
Pay downs of investment securities
8,739

 

 

 

 
8,739

Net cash used in investing activities
(50,762
)
 
(3,003
)
 
(71,772
)
 
103,174

 
(22,363
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from issuance of debt

 
1,799

 
306

 

 
2,105

Deferred financing costs

 
(624
)
 

 

 
(624
)
Repayments of debt

 
(6,362
)
 
(322
)
 

 
(6,684
)
Borrowings under revolver

 
153,361

 

 

 
153,361

Repayments on revolver

 
(167,915
)
 

 

 
(167,915
)
Capital contributions received

 
33,658

 
69,516

 
(103,174
)
 

Intercompany dividends paid

 
(181,825
)
 
(29,343
)
 
211,168

 

Dividends and distributions on common stock
(188,151
)
 

 

 

 
(188,151
)
Distributions to non-controlling interest

 

 
(3,280
)
 

 
(3,280
)
Contributions from non-controlling interest

 

 
813

 

 
813

Proceeds from exercise of Vector options
1,441

 

 

 

 
1,441

Tax benefit of options exercised
821

 
1,497

 

 
(1,497
)
 
821

Net cash (used in) provided by financing activities
(185,889
)
 
(166,411
)
 
37,690

 
106,497

 
(208,113
)
Net (decrease) increase in cash and cash equivalents
(100,281
)
 
2,651

 
11,633

 

 
(85,997
)
Cash and cash equivalents, beginning of year
211,751

 
9,724

 
104,890

 

 
326,365

Cash and cash equivalents, end of year
$
111,470

 
$
12,375

 
$
116,523

 
$

 
$
240,368



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 
Year Ended December 31, 2014
 
Parent/
Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non-
Guarantors
 
Consolidating
Adjustments
 
Consolidated
Vector Group
Ltd.
Net cash provided by operating activities
$
61,779

 
$
83,671

 
$
62,656

 
$
(100,730
)
 
$
107,376

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Sale of investment securities
154,615

 

 

 

 
154,615

Maturities of investment securities
930

 

 

 

 
930

Purchase of investment securities
(299,417
)
 
(6,314
)
 

 

 
(305,731
)
Proceeds from sale or liquidation of long-term investments
2,367

 

 
49

 

 
2,416

Purchase of long-term investments
(12,000
)
 

 

 

 
(12,000
)
Investments in real estate ventures

 

 
(40,916
)
 

 
(40,916
)
Distributions from real estate ventures

 

 
7,309

 

 
7,309

Increase in cash surrender value of life insurance policies

 
(484
)
 

 

 
(484
)
Decrease (increase) in restricted assets
188

 
(371
)
 
(689
)
 

 
(872
)
Issuance of notes receivable
(35,000
)
 

 
(8,250
)
 
35,000

 
(8,250
)
Proceeds from sale of fixed assets

 
4

 

 

 
4

Purchase of subsidiaries

 

 
(750
)
 

 
(750
)
Repayments of notes receivable
35,000

 

 
4,850

 
(35,000
)
 
4,850

Purchase of preferred securities

 

 
(1,000
)
 

 
(1,000
)
Investments in subsidiaries
(85,278
)
 

 

 
85,278

 

Capital expenditures
(15
)
 
(16,466
)
 
(6,923
)
 

 
(23,404
)
Pay downs of investment securities
1,849

 

 

 

 
1,849

Net cash used in investing activities
(236,761
)
 
(23,631
)
 
(46,320
)
 
85,278

 
(221,434
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 
 

Proceeds from issuance of debt
408,750

 
40,164

 

 
(35,000
)
 
413,914

Repayments of debt

 
(43,724
)
 
(3,877
)
 
35,000

 
(12,601
)
Deferred financing costs
(12,360
)
 

 

 

 
(12,360
)
Borrowings under revolver

 
886,130

 

 

 
886,130

Repayments on revolver

 
(898,788
)
 

 

 
(898,788
)
Capital contributions received

 
15,270

 
70,008

 
(85,278
)
 

Intercompany dividends paid

 
(61,180
)
 
(39,550
)
 
100,730

 

Dividends and distributions on common stock
(167,328
)
 

 

 

 
(167,328
)
Distributions to non-controlling interest

 

 
(9,339
)
 

 
(9,339
)
Proceeds from exercise of Vector options
5,151

 

 

 

 
5,151

Tax benefit of options exercised
1,178

 

 

 

 
1,178

Net cash provided by (used in) financing activities
235,391

 
(62,128
)
 
17,242

 
15,452

 
205,957

Net increase (decrease) in cash and cash equivalents
60,409

 
(2,088
)
 
33,578

 

 
91,899

Cash and cash equivalents, beginning of year
151,342

 
11,812

 
71,312

 

 
234,466

Cash and cash equivalents, end of year
$
211,751

 
$
9,724

 
$
104,890

 
$

 
$
326,365