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New Valley LLC (Tables)

12 Months Ended

Dec. 31, 2018

New Valley’s maximum exposure to loss was as follows:



	December 31, 2018
Condominium and Mixed Use Development:
New York City SMSA	$	69,724
All other U.S. areas	43,891
	113,615
Hotels:
New York City SMSA	15,782
International	2,334
	18,116
Commercial:
New York City SMSA	1,867
All other U.S. areas	7,053
	8,920
Other	32,648
Total maximum exposure to loss	$	173,299

The components of “Investments in real estate ventures” were as follows:



	Range of Ownership	December 31, 2018			December 31, 2017
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	65,007	⁽¹⁾	$	96,386
All other U.S. areas	15.0% - 48.5%	31,392			28,763
		96,399			125,149
Apartment Buildings:
New York City SMSA	45.4%	—		⁽²⁾	10,910
All other U.S. areas	7.6% - 16.3%	—			257
		—			11,167
Hotels:
New York City SMSA	5.2% - 18.4%	15,782		⁽¹⁾	19,616
International	49.0%	2,334			2,800
		18,116			22,416
Commercial:
New York City SMSA	49.0%	1,867			2,437
All other U.S. areas	1.6%	7,053			15,642
		8,920			18,079

Other	15.0% - 50.0%	17,670		⁽²⁾	11,320
Investments in real estate ventures		$	141,105		$	188,131

_____________________________


⁽¹⁾	One New York City SMSA venture, with a carrying value of $267, was reclassified from Condominium and Mixed Use Development to Hotels as of December 31, 2018.

⁽²⁾

One New York City SMSA venture, with a carrying value of $1,783, was reclassified from Apartment Buildings to Other as of December 31, 2018.New Valley made contributions to its investments in real estate ventures as follows:



	December 31, 2018		December 31, 2017
Condominium and Mixed Use Development:
New York City SMSA	$	4,135	$	11,465
All other U.S. areas	—		8,596
	4,135		20,061
Apartment Buildings:
New York City SMSA	975		—
	975		—
Hotels:
New York City SMSA	168		3,068
	168		3,068
Commercial:
All other U.S. areas	—		5,753
	—		5,753

Other	4,450		9,925
Total contributions	$	9,728	$	38,807

New Valley received distributions from its investments in real estate ventures as follows:



	December 31, 2018		December 31, 2017
Condominium and Mixed Use Development:
New York City SMSA	$	39,207	$	68,600
All other U.S. areas	—		20,859
	39,207		89,459
Apartment Buildings:
New York City SMSA	27,569		—
All other U.S. areas	422		7,498
	27,991		7,498
Hotels:
New York City SMSA	1,542		—
International	220		468
	1,762		468
Commercial:
New York City SMSA	9		111
All other U.S. areas	10,139		514
	10,148		625

Other	1,060		1,663
Total distributions	$	80,168	$	99,713

New Valley recognized equity in earnings (losses) from real estate ventures as follows:



	Year Ended December 31,
	2018			2017			2016
Condominium and Mixed Use Development:
New York City SMSA	$	(923	)	$	35,578		$	7,432
All other U.S. areas	(1,063		)	(2,063		)	(1,793		)
	(1,986		)	33,515			5,639
Apartment Buildings:
New York City SMSA	17,467			(6,703		)	—
All other U.S. areas	164			(532		)	1,588
	17,631			(7,235		)	1,588
Hotels:
New York City SMSA	(2,727		)	(5,347		)	(1,884		)
International	(246		)	232			439
	(2,973		)	(5,115		)	(1,445		)
Commercial:
New York City SMSA	(562		)	(742		)	(1,644		)
All other U.S. areas	1,608			403			—
	1,046			(339		)	(1,644		)

Other	728			569			1,062
Total equity in earnings from real estate ventures	$	14,446		$	21,395		5,200

Equity method investments

Equity-method investments consisted of the following:



	December 31, 2018		December 31, 2017
Indian Creek Investors LP (“Indian Creek”)	$	1,167	$	4,498
Boyar Value Fund (“Boyar”)	8,384		9,026
Ladenburg Thalmann Financial Services Inc. (“LTS”)	2,080		2,317
Castle Brands, Inc. (“Castle”)	—		—
	$	11,631	$	15,841

Long-term investments consisted of the following:



	December 31, 2018		December 31, 2017
Equity securities at fair value that qualify for the NAV practical expedient	$	54,628	$	—
Investments accounted at cost	—		65,450
Equity-method investments	11,631		15,841
	$	66,259	$	81,291

Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for Indian Creek and Boyar.



	December 31, 2018		December 31, 2017
Investment securities	$	33,830	$	48,050
Cash and cash equivalents	521		1,719
Other assets	33		74
Total assets	$	34,384	$	49,843

Other liabilities	$	738	$	3,007
Total liabilities	738		3,007
Partners’ capital	33,646		46,836
Total liabilities and partners’ capital	$	34,384	$	49,843



	Year Ended December 31,
	2018			2017		2016
Investment income	$	549		$	792	$	438
Expenses	861			690		684
Net investment (loss) gain	(312		)	102		(246		)
Total net realized (loss) gain and net change in unrealized depreciation from investments	(5,781		)	100		3,341
Net (decrease) increase in partners’ capital resulting from operations	$	(6,093	)	$	202	$	3,095

Pursuant to Rule 4-08(g), the following summarized financial data is presented for LTS. The Company accounts for its investment in LTS using a three-month lag reporting period.



	September 30, 2018			September 30, 2017
Cash and cash equivalents	$	262,834		$	100,739
Receivables from clearing brokers, note receivable and other receivable, net	165,149			139,497
Goodwill and intangible assets, net	200,199			233,007
Other assets	172,409			79,372
Total assets	$	800,591		$	552,615

Accrued compensation, commissions and fees payable	$	141,260		$	90,991
Accounts payable and accrued liabilities	50,122			42,895
Notes payable, net of $115 and $535 unamortized discount in 2018 and 2017, respectively	185,199			28,182
Other liabilities	37,658			31,718
Total liabilities	414,239			193,786
Preferred stock	2			2
Common stock	20			20
Additional paid-in capital	487,752			515,208
Accumulated deficit	(101,467		)	(156,423		)
Total controlling shareholders’ equity	386,307			358,807
Non-controlling interest	45			22
Total shareholders’ equity	386,352			358,829
Total liabilities and shareholders’ equity	$	800,591		$	552,615

(1) The table above presents the nature and amounts of the major components of assets and liabilities, along with information regarding redeemable stock and non-controlling interest.



	Twelve Months Ended September 30,
	2018			2017		2016
Revenues	$	1,380,031		$	1,221,195	$	1,104,227
Expenses	1,345,768			1,217,331		1,119,366
Income (loss) before other items	34,263			3,864		(15,139		)
Change in fair value of contingent consideration	(232		)	48		(154		)
Income (loss) from continuing operations	34,031			3,912		(15,293		)
Net income (loss)	$	30,858		$	1,669	$	(25,159	)

Pursuant to Rule 4-08(g), the following summarized financial data is presented for Castle. The Company accounts for its investment in Castle using a three-month lag reporting period.



	September 30, 2018		September 30, 2017
Current assets	$	57,047	$	49,328
Non-current assets	8,359		8,783
Total assets	$	65,406	$	58,111

Current liabilities	$	13,440	$	17,586
Non-current liabilities	42,892		35,296
Total liabilities	56,332		52,882
Total controlling shareholders’ equity	4,907		2,386
Non-controlling interest	4,167		2,843
Total shareholders’ equity	9,074		5,229
Total liabilities and shareholders’ equity	$	65,406	$	58,111



	Twelve Months Ended September 30,
	2018		2017		2016
Revenues	$	94,567	$	82,636	$	73,549
Expenses	57,083		48,257		44,236
Gross profit	37,484		34,379		29,313
Other expenses	32,769		31,404		28,338
Income from continuing operations	4,715		2,975		975
Net income (loss)	$	546	$	1,008	$	(1,263	)

Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for the following: 1 QPS Tower, 10 Madison Square West, Other Condominium and Mixed Use Development, Apartment Buildings, Hotels, Commercial and Other. The equity in earnings in 1 QPS Tower and Greenwich for the year ended December 31, 2018 were significant enough to warrant separate disclosure. 10 Madison Square West for the year ended December 31, 2017 was significant enough to warrant separate disclosure.

10 Madison Square West:



	Year Ended December 31,
	2018			2017		2016
Income Statement
Revenue	$	28,539		$	197,157	$	467,755
Cost of goods sold	24,250			116,120		248,917
Other expenses	(4,236		)	11,649		28,784
Income from continuing operations	$	8,525		$	69,388	$	190,054



	December 31, 2018		December 31, 2017
Balance Sheets
Investment in real estate	$	2,369	$	7,908
Total assets	15,071		32,929
Total debt	3,319		30,006
Total liabilities	3,616		30,006
Non-controlling interest	10,091		2,575

1 QPS Tower:



	Year Ended December 31,
	2018			2017			2016
Income Statement
Revenue	$	14,625		$	4,216		$	(15	)
Other expenses	26,357			18,508			518
Loss from continuing operations	$	(11,732	)	$	(14,292	)	$	(533	)



	December 31, 2018		December 31, 2017
Balance Sheets
Investment in real estate	$	215,956	$	217,926
Total assets	220,350		229,825
Total debt	209,602		206,413
Total liabilities	212,640		211,631

Greenwich:



	Year Ended December 31,
	2018			2017			2016
Income Statement
Revenue	$	28		$	(768	)	$	815
Other expenses	146,286			2,696			2,727
Loss from continuing operations	$	(146,258	)	$	(3,464	)	$	(1,912	)



	December 31, 2018			December 31, 2017
Balance Sheets
Investment in real estate	$	403,815		$	374,307
Total assets	419,518			376,684
Total debt	408,779			246,244
Total liabilities	445,514			270,322
Non-controlling interest	(19,064		)	77,998

Other Condominium and Mixed Use Development:



	Year Ended December 31,
	2018		2017		2016
Income Statement
Revenue	$	365,890	$	176,306	$	44,089
Cost of goods sold	71,623		93,766		54,103
Other expenses	44,211		47,590		13,782
Income (loss) from continuing operations	$	250,056	$	34,950	$	(23,796	)



	December 31, 2018		December 31, 2017
Balance Sheets
Investment in real estate	$	2,541,994	$	3,720,332
Total assets	2,701,652		4,178,725
Total debt	1,798,296		2,806,648
Total liabilities	2,036,431		3,028,789
Non-controlling interest	150,897		472,459

Apartment Buildings:



	Year Ended December 31,
	2018			2017		2016
Income Statement
Revenue	$	44,366		$	66,588	$	87,225
Other expenses	105,899			64,431		83,117
(Loss) income from continuing operations	$	(61,533	)	$	2,157	$	4,108



	December 31, 2018		December 31, 2017
Balance Sheets
Investment in real estate	$	558,268	$	493,178
Total assets	574,664		507,684
Total debt	412,447		422,055
Total liabilities	420,164		639,809
Non-controlling interest	115,952		58,700

Hotels:



	Year Ended December 31,
	2018			2017			2016
Income Statement
Revenue	$	171,949		$	75,862		$	81,517
Cost of goods sold	4,522			4,035			4,262
Other expenses	268,007			112,124			114,582
Loss from continuing operations	$	(100,580	)	$	(40,297	)	$	(37,327	)



	December 31, 2018		December 31, 2017
Balance Sheets
Investment in real estate	$	1,019,133	$	776,577
Total assets	1,126,598		865,070
Total debt	696,200		491,200
Total liabilities	736,101		512,252
Non-controlling interest	348,451		319,322

Commercial:



	Year Ended December 31,
	2018		2017		2016
Income Statement
Revenue	$	56,773	$	6,636	$	8,410
Other expenses	11,647		3,294		11,195
Income (loss) from continuing operations	$	45,126	$	3,342	$	(2,785	)



	December 31, 2018		December 31, 2017
Balance Sheets
Investment in real estate	$	53,193	$	53,586
Total assets	70,395		75,289
Total debt	55,625		55,625
Total liabilities	54,645		54,524

Other:



	Year Ended December 31,
	2018			2017			2016
Income Statement
Revenue	$	4,823		$	3,442		$	3,344
Other expenses	6,382			5,069			1,227
(Loss) income from continuing operations	$	(1,559	)	$	(1,627	)	$	2,117



	December 31, 2018		December 31, 2017
Balance Sheets
Investment in real estate	$	710,549	$	824,745
Total assets	1,152,124		894,982
Total debt	658,592		470,000
Total liabilities	665,463		471,964
Non-controlling interest	392,933		356,632

Investments in Real Estate, net

The components of “Investments in real estate, net” were as follows:



	December 31, 2018		December 31, 2017
Escena, net	$	10,170	$	10,485
Sagaponack	16,050		13,467
Investment in real estate, net	$	26,220	$	23,952

The assets have been classified as an “Investments in real estate, net” on the Company’s consolidated balance sheet and the components are as follows:



	December 31, 2018			December 31, 2017
Land and land improvements	$	8,910		$	8,907
Building and building improvements	1,900			1,891
Other	2,162			2,111
	12,972			12,909
Less accumulated depreciation	(2,802		)	(2,424		)
	$	10,170		$	10,485