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	September 30, 2018		December 31, 2017
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	60,553	$	96,386
All other U.S. areas	15.0% - 48.5%	30,582		28,763
		91,135		125,149
Apartment Buildings:
New York City SMSA	45.4%	6,882		10,910
All other U.S. areas	7.6% - 16.3%	105		257
		6,987		11,167
Hotels:
New York City SMSA	5.2%	17,584		19,616
International	49.0%	2,438		2,800
		20,022		22,416
Commercial:
New York City SMSA	49.0%	1,812		2,437
All other U.S. areas	1.6%	6,987		15,642
		8,799		18,079

Other	15.0% - 50.0%	16,045		11,320
Investments in real estate ventures		$	142,988	$	188,131



	Nine Months Ended September 30,
	2018		2017
Condominium and Mixed Use Development:
New York City SMSA	$	1,158	$	872
All other U.S. areas	—		8,596
	1,158		9,468
Apartment Buildings:
New York City SMSA	522		—
	522		—
Hotels:
New York City SMSA	167		1,537
	167		1,537

Other	4,285		9,825
Total contributions	$	6,132	$	20,830

New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners during the nine months ended September 30, 2018 and September 30, 2017. New Valley’s direct investment percentage for these ventures did not significantly change.



	Nine Months Ended September 30,
	2018		2017
Condominium and Mixed Use Development:
New York City SMSA	$	38,860	$	35,780
All other U.S. areas	—		17,949
	38,860		53,729
Apartment Buildings:
All other U.S. areas	295		239
	295		239
Hotels:
International	—		239
	—		239
Commercial:
New York City SMSA	9		101
All other U.S. areas	10,072		238
	10,081		339

Other	657		1,150
Total distributions	$	49,893	$	55,696

Of the distributions received by New Valley from its investment in real estate ventures, $12,074 and $32,358 were from distributions of earnings for the nine months ended September 30, 2018 and September 30, 2017, respectively, and $37,819 and $23,338 were a return of capital for the nine months ended September 30, 2018 and September 30, 2017, respectively. 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 September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Condominium and Mixed Use Development:
New York City SMSA	$	1,732		$	(55	)	$	(1,880	)	$	29,241
All other U.S. areas	(151		)	96			(976		)	(920		)
	1,581			41			(2,856		)	28,321
Apartment Buildings:
New York City SMSA	(1,267		)	—			(4,550		)
All other U.S. areas	156			197			142			(450		)
	(1,111		)	197			(4,408		)	(450		)
Hotels:
New York City SMSA	(749		)	(584		)	(2,200		)	(1,790		)
International	206			489			(362		)	193
	(543		)	(95		)	(2,562		)	(1,597		)
Commercial:
New York City SMSA	(228		)	(333		)	(617		)	(702		)
All other U.S. areas	273			295			1,416			231
	45			(38		)	799			(471		)

Other	322			(152		)	649			554
Equity in earnings (losses) from real estate ventures	$	294		$	(47	)	$	(8,378	)	$	26,357

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 September 30, 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 $10,174 of which $8,467 was attributed to the Company for the nine months ended September 30, 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 $1,434 and $14,548 as of September 30, 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 September 30, 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 consisted 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:



	September 30, 2018
Condominium and Mixed Use Development:
New York City SMSA	$	65,273
All other U.S. areas	43,082
	108,355
Apartment Buildings:
New York City SMSA	6,882
All other U.S. areas	105
	6,987
Hotels:
New York City SMSA	17,584
International	2,438
	20,022
Commercial:
New York City SMSA	1,812
All other U.S. areas	6,987
	8,799
Other	31,188
Total maximum exposure to loss	$	175,351

New Valley capitalized $2,246 and $6,549 of interest costs into the carrying value of its ventures whose projects were currently under development for the three and nine months ended September 30, 2018. New Valley capitalized $1,108 of interest costs into the carrying value of its venture whose projects were currently under development for the three months ended September 30, 2017 and recognized $2,659 of interest costs into the carrying value of its ventures whose projects were currently under development for the nine months ended September 30, 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 $16,603 and $6,179 from these projects for the nine months ended September 30, 2018 and September 30, 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 10 Madison Square West and 125 Greenwich Street investments. New Valley has elected a one-month lag reporting period for both investments.



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018			2017
Income Statement
Revenue	$	60		$	31,672	$	28,105		$	194,056
Cost of sales	2,571			20,582		19,242			122,461
Other expenses	(1,805		)	915		145,574			5,597
Income from continuing operations	$	(706	)	$	10,175	$	(136,711	)	$	65,998



	September 30, 2018			December 31, 2017
Land and land improvements	$	8,911		$	8,907
Building and building improvements	1,891			1,891
Other	2,166			2,111
	12,968			12,909
Less accumulated depreciation	(2,732		)	(2,424		)
	$	10,236		$	10,485

New Valley recorded operating losses of $918 and $860 for the three months ended September 30, 2018 and 2017, respectively, from Escena. New Valley recorded operating losses of $408 and $642 for the nine months ended September 30, 2018 and 2017, respectively, from Escena.