Segment Information

3 Months Ended

Mar. 31, 2018

SEGMENT INFORMATION

The Company’s business segments for the three months ended March 31, 2018 and 2017 were Tobacco and Real Estate. The Tobacco segment consists of the manufacture and sale of conventional cigarettes. 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. As a result of the reduction in e-cigarette activities, results from the Company’s E-cigarette operations are now included in the Corporate and Other Segment and 2017 information has been recast to conform to the 2018 presentation. This change did not have an impact to the Company’s historical consolidated results.

Financial information for the Company’s operations before taxes and non-controlling interests for the three months ended March 31, 2018 and 2017 were as follows:



				Real				Corporate
	Tobacco			Estate				and Other			Total
Three months ended March 31, 2018
Revenues	$	267,116		$	161,850			$	—		$	428,966
Operating income (loss)	63,411		(1)	(8,760		)	(3)	(6,567		)	48,084
Equity in losses from real estate ventures	—			(6,560		)		—			(6,560		)
Depreciation and amortization	2,037			2,289				261			4,587
Capital expenditures	911			3,071				5			3,987

Three months ended March 31, 2017
Revenues	$	257,454		$	157,754			$	—		$	415,208
Operating income (loss)	59,644		(2)	620				(6,843		)	53,421
Equity in earnings from real estate ventures	—			11,113				—			11,113
Depreciation and amortization	2,420			2,222				387			5,029
Capital expenditures	1,096			3,486				6			4,588


⁽¹⁾	Operating income includes $3,490 of income from MSA Settlement.


⁽²⁾	Operating income includes $895 of income from MSA Settlement, and $1,585 of litigation judgment expense.

⁽³⁾

Operating income includes $2,469 of litigation judgment income.