New Valley holds equity investments in various real estate projects domestically and internationally. The majority of New Valley’s investment in real estate ventures were located in the New York City Standard Metropolitan Statistical Area (“SMSA”). New Valley aggregates the disclosure of its investments in real estate ventures by property type and operating characteristics.



	Range of Ownership	March 31, 2018		December 31, 2017
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	91,912	$	96,386
All other U.S. areas	15.0% - 48.5%	29,144		28,763
		121,056		125,149
Apartment Buildings:
New York City SMSA	45.4%	9,344		10,910
All other U.S. areas	7.6% - 16.3%	42		257
		9,386		11,167
Hotels:
New York City SMSA	5.2%	18,802		19,616
International	49.0%	2,375		2,800
		21,177		22,416
Commercial:
New York City SMSA	49.0%	2,170		2,437
All other U.S. areas	1.9%	15,657		15,642
		17,827		18,079

Other	15.0% - 50.0%	11,565		11,320
Investments in real estate ventures		$	181,011	$	188,131



	Three Months Ended March 31,
	2018		2017
Condominium and Mixed Use Development:
New York City SMSA	$	533	$	91
All other U.S. areas	—		1,345
Total contributions	$	533	$	1,436

New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners during the three months ended March 31, 2018 and March 31, 2017. New Valley’s direct investment percentage for these ventures did not change.



	Three Months Ended March 31,
	2018		2017
Condominium and Mixed Use Development:
New York City SMSA	$	2,868	$	6,200
	2,868		6,200
Apartment Buildings:
All other U.S. areas	201		152
	201		152
Commercial:
New York City SMSA	—		101
All other U.S. areas	215		—
	215		101

Other	18		550
Total distributions	$	3,302	$	7,003

Of the distributions received by New Valley from its investment in real estate ventures, $3,083 and $7,003 were from distributions of earnings for the three months ended March 31, 2018 and March 31, 2017, respectively, and $219 were a return of capital for the three months ended March 31, 2018. Distributions from earnings are included in cash from operations in the Condensed Consolidating Statements of Cash Flows, while distributions that are returns of capital are included in cash flows from investing activities in the Condensed Consolidating Statements of Cash Flows.



	Three Months Ended March 31,
	2018			2017
Condominium and Mixed Use Development:
New York City SMSA	$	(3,462	)	$	12,180
All other U.S. areas	(505		)	(292		)
	(3,967		)	11,888
Apartment Buildings:
All other U.S. areas	(1,580		)	77
	(1,580		)	77
Hotels:
New York City SMSA	(814		)	(687		)
International	(425		)	(550		)
	(1,239		)	(1,237		)
Commercial:
New York City SMSA	(267		)	(245		)
All other U.S. areas	230			—
	(37		)	(245		)

Other	263			630
Equity in (losses) earnings from real estate ventures	$	(6,560	)	$	11,113

As part of the Company’s ongoing assessment of the carrying values of its investments in real estate ventures, the Company determined that the fair value of a New York City SMSA Condominium and Mixed Use Development venture was less than its carrying value as of March 31, 2018. The Company determined that the impairment was other than temporary. The Company recorded an impairment charge as a component of equity in losses from real estate ventures of $7,474 of which $6,354 was attributed to the Company for the three months ended March 31, 2018.

The Company has determined that New Valley is the primary beneficiary of two real estate ventures because it controls the activities that most significantly impact economic performance of each of the two real estate ventures. Consequently, New Valley consolidates these variable interest entities (“VIEs”).

The carrying amount of the consolidated assets of the VIEs was $7,033 and $14,548 as of March 31, 2018 and December 31, 2017, respectively. Those assets are owned by the VIEs, not the Company. Neither of the two consolidated VIEs had recourse liabilities as of March 31, 2018 and December 31, 2017. A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes and other debts payable.

For the remaining investments in real estate ventures, New Valley determined that the entities were variable interest entities but New Valley was not the primary beneficiary. Therefore, New Valley’s investment in such real estate ventures has been accounted for under the equity method of accounting.

New Valley’s maximum exposure to loss from its investments in real estate ventures consists of the net carrying value of the venture adjusted for any future capital commitments and/or guarantee arrangements. The maximum exposure to loss was as follows:



	March 31, 2018
Condominium and Mixed Use Development:
New York City SMSA	$	94,714
All other U.S. areas	41,644
	136,358
Apartment Buildings:
All other U.S. areas	9,386
	9,386
Hotels:
New York City SMSA	18,802
International	2,375
	21,177
Commercial:
New York City SMSA	2,170
All other U.S. areas	15,657
	17,827
Other	16,365
Total maximum exposure to loss	$	201,113

New Valley capitalized $2,209 of interest expense into the carrying value of its ventures whose projects were currently under development for the three months ended March 31, 2018. New Valley capitalized $446 of interest expense into the carrying value of its ventures whose projects were currently under development for the three months ended March 31, 2017.

Douglas Elliman has been engaged by the developers as the sole broker or the co-broker for several of the real estate ventures that New Valley owns an interest. Douglas Elliman earned gross commissions of approximately $3,759 and $3,310 from these projects for the three months ended March 31, 2018 and March 31, 2017, respectively.

The following summarized financial data for certain unconsolidated subsidiaries that meet certain thresholds pursuant to SEC Regulation S-X Rule 210.10-01(b) includes information for the following: Condominium and Mixed Use Developments (10 Madison Square West, 215 Chrystie Street and 11 Beach Street). New Valley has elected a one-month lag reporting period for 10 Madison Square West, 215 Chrystie Street and 11 Beach Street.



	Three Months Ended March 31,
	2018		2017
Income Statement
Revenue	$	159,492	$	128,278
Cost of sales	115,182		102,195
Other expenses	23,775		2,769
Income from continuing operations	$	20,535	$	23,314



	March 31, 2018			December 31, 2017
Land and land improvements	$	8,911		$	8,907
Building and building improvements	1,891			1,891
Other	2,131			2,111
	12,933			12,909
Less accumulated depreciation	(2,527		)	(2,424		)
	$	10,406		$	10,485