Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

				June 30, 2019
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	174,786		$	69,154	$	79,921	$	—		$	323,861
Investment securities at fair value	135,100			—		—		—			135,100
Accounts receivable - trade, net	—			13,616		30,731		—			44,347
Intercompany receivables	41,312			—		—		(41,312		)	—
Inventories	—			96,934		—		—			96,934
Income taxes receivable, net	—			—		387		(387		)	—
Other current assets	4,788			6,532		26,931		—			38,251
Total current assets	355,986			186,236		137,970		(41,699		)	638,493
Property, plant and equipment, net	404			36,799		47,059		—			84,262
Investments in real estate, net	—			—		27,212		—			27,212
Long-term investments (of which $53,175 were carried at fair value)	63,814			—		—		—			63,814
Investments in real estate ventures	—			—		144,766		—			144,766
Operating lease right of use assets	7,623			5,215		122,296		—			135,134
Investments in consolidated subsidiaries	429,782			245,329		—		(675,111		)	—
Goodwill and other intangible assets, net	—			107,511		158,571		—			266,082
Other assets	15,016			38,966		41,415		—			95,397
Total assets	$	872,625		$	620,056	$	679,289	$	(716,810	)	$	1,455,160
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	211,712		$	38,690	$	5,257	$	(5,000	)	$	250,659
Current portion of fair value of derivatives embedded within convertible debt	17,287			—		—		—			17,287
Intercompany payables	—			197		41,115		(41,312		)	—
Income taxes payable, net	6,008			2,724		—		(387		)	8,345
Current payments due under the Master Settlement Agreement	—			85,651		—		—			85,651
Current operating lease liability	1,020			1,918		17,401		—			20,339
Other current liabilities	46,463			64,050		65,721		(448		)	175,786
Total current liabilities	282,490			193,230		129,494		(47,147		)	558,067
Notes payable, long-term debt and other obligations, less current portion	1,155,001			25,143		25,007		(25,000		)	1,180,151
Non-current employee benefits	46,621			15,480		—		—			62,101
Deferred income taxes, net	(12,241		)	20,507		33,199		—			41,465
Non-current operating lease liability	7,541			3,901		128,287		—			139,729
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement	397			36,806		43,140		—			80,343
Total liabilities	1,479,809			295,067		359,127		(72,147		)	2,061,856
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(607,184		)	324,989		319,674		(644,663		)	(607,184		)
Non-controlling interest	—			—		488		—			488
Total stockholders' (deficiency) equity	(607,184		)	324,989		320,162		(644,663		)	(606,696		)
Total liabilities and stockholders' deficiency	$	872,625		$	620,056	$	679,289	$	(716,810	)	$	1,455,160

CONDENSED CONSOLIDATING BALANCE SHEETS

				December 31, 2018
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	474,880		$	23,308	$	86,393	$	—		$	584,581
Investment securities at fair value	131,569			—		—		—			131,569
Accounts receivable - trade, net	—			15,440		18,806		—			34,246
Intercompany receivables	38,391			—		—		(38,391		)	—
Inventories	—			90,997		—		—			90,997
Income taxes receivable, net	—			—		1,268		(1,268		)	—
Other current assets	1,500			7,599		21,729		—			30,828
Total current assets	646,340			137,344		128,196		(39,659		)	872,221
Property, plant and equipment, net	506			38,562		47,668		—			86,736
Investments in real estate, net	—			—		26,220		—			26,220
Long-term investments (of which $54,628 were carried at fair value)	66,259			—		—		—			66,259
Investments in real estate ventures	—			—		141,105		—			141,105
Investments in consolidated subsidiaries	431,288			252,113		—		(683,401		)	—
Goodwill and other intangible assets, net	—			107,511		159,100		—			266,611
Other assets	14,616			38,154		37,582		—			90,352
Total assets	$	1,159,009		$	573,684	$	539,871	$	(723,060	)	$	1,549,504
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	226,343		$	29,480	$	311	$	—		$	256,134
Current portion of fair value of derivatives embedded within convertible debt	6,635			—		—		—			6,635
Current portion of employee benefits	—			—		—		—			—
Intercompany payables	—			479		37,912		(38,391		)	—
Income taxes payable, net	5,257			1,263		—		(1,268		)	5,252
Current payments due under the Master Settlement Agreement	—			36,561		—		—			36,561
Other current liabilities	55,915			73,279		51,144		—			180,338
Total current liabilities	294,150			141,062		89,367		(39,659		)	484,920
Notes payable, long-term debt and other obligations, less current portion	1,354,219			2,349		30,129		—			1,386,697
Fair value of derivatives embedded within convertible debt	24,789			—		—		—			24,789
Non-current employee benefits	45,615			15,673		—		—			61,288
Deferred income taxes, net	(13,084		)	17,732		32,763		—			37,411
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement	1,379			38,179		62,207		—			101,765
Total liabilities	1,707,068			214,995		214,466		(39,659		)	2,096,870
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(548,059		)	358,689		324,712		(683,401		)	(548,059		)
Non-controlling interest	—			—		693		—			693
Total stockholders' (deficiency) equity	(548,059		)	358,689		325,405		(683,401		)	(547,366		)
Total liabilities and stockholders' deficiency	$	1,159,009		$	573,684	$	539,871	$	(723,060	)	$	1,549,504

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Three Months Ended June 30, 2019
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	294,621		$	243,931		$	(120	)	$	538,432
Expenses:
Cost of sales	—			204,461			163,713			—			368,174
Operating, selling, administrative and general expenses	9,515			18,167			65,797			(120		)	93,359
Litigation settlement and judgment expense	—			655			—			—			655
Management fee expense	—			2,992			—			(2,992		)	—
Operating (loss) income	(9,515		)	68,346			14,421			2,992			76,244
Other income (expenses):
Interest expense	(31,706		)	(1,043		)	(228		)	224			(32,753		)
Change in fair value of derivatives embedded within convertible debt	3,788			—			—			—			3,788
Equity in earnings from real estate ventures	—			—			6,391			—			6,391
Equity in earnings in consolidated subsidiaries	66,163			15,138			—			(81,301		)	—
Management fee income	2,992			—			—			(2,992		)	—
Other, net	2,017			447			632			—			3,096
Income before provision for income taxes	33,739			82,888			21,216			(81,077		)	56,766
Income tax benefit (expense)	5,568			(17,118		)	(5,909		)	—			(17,459		)
Net income	39,307			65,770			15,307			(81,077		)	39,307
Net loss attributed to non-controlling interest	—			—			—			—			—
Net income attributed to Vector Group Ltd.	$	39,307		$	65,770		$	15,307		$	(81,077	)	$	39,307
Comprehensive loss attributed to non-controlling interest	$	—		$	—		$	—		$	—		$	—
Comprehensive income attributed to Vector Group Ltd.	$	39,912		$	66,004		$	15,307		$	(81,311	)	$	39,912

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Three Months Ended June 30, 2018
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	274,953		$	206,655		$	(120	)	$	481,488
Expenses:
Cost of sales	—			192,761			140,005			—			332,766
Operating, selling, administrative and general expenses	8,320			16,570			61,566			(120		)	86,336
Litigation settlement and judgment expense	—			525			—			—			525
Management fee expense	—			2,877			—			(2,877		)	—
Operating (loss) income	(8,320		)	62,220			5,084			2,877			61,861
Other income (expenses):
Interest expense	(47,738		)	(676		)	(7		)	—			(48,421		)
Change in fair value of derivatives embedded within convertible debt	10,717			—			—			—			10,717
Equity in losses from real estate ventures	—			—			(2,112		)	—			(2,112		)
Equity in earnings in consolidated subsidiaries	52,092			—			—			(52,092		)	—
Management fee income	2,877			—			—			(2,877		)	—
Other, net	6,065			3,310			336			—			9,711
Income before provision for income taxes	15,693			64,854			3,301			(52,092		)	31,756
Income tax benefit (expense)	2,125			(15,688		)	803			—			(12,760		)
Net income	17,818			49,166			4,104			(52,092		)	18,996
Net income attributed to non-controlling interest	—			—			(1,178		)	—			(1,178		)
Net income attributed to Vector Group Ltd.	$	17,818		$	49,166		$	2,926		$	(52,092	)	$	17,818
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(1,178	)	$	—		$	(1,178	)
Comprehensive income attributed to Vector Group Ltd.	$	18,137		$	49,312		$	2,926		$	(52,238	)	$	18,137

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Six Months Ended June 30, 2019
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	551,496		$	408,099		$	(239	)	$	959,356
Expenses:
Cost of sales	—			381,764			272,430			—			654,194
Operating, selling, administrative and general expenses	19,346			34,858			131,708			(239		)	185,673
Litigation settlement and judgment expense	—			655			—			—			655
Management fee expense	—			5,985			—			(5,985		)	—
Operating (loss) income	(19,346		)	128,234			3,961			5,985			118,834
Other income (expenses):
Interest expense	(68,254		)	(2,010		)	(457		)	448			(70,273		)
Change in fair value of derivatives embedded within convertible debt	14,137			—			—			—			14,137
Equity in earnings from real estate ventures	—			—			3,952			—			3,952
Equity in earnings in consolidated subsidiaries	101,428			4,724			—			(106,152		)	—
Management fee income	5,985			—			—			(5,985		)	—
Other, net	9,962			600			1,336			—			11,898
Income before provision for income taxes	43,912			131,548			8,792			(105,704		)	78,548
Income tax benefit (expense)	10,348			(32,066		)	(2,490		)	—			(24,208		)
Net income	54,260			99,482			6,302			(105,704		)	54,340
Net income attributed to non-controlling interest	—			—			(80		)	—			(80		)
Net income attributed to Vector Group Ltd.	$	54,260		$	99,482		$	6,222		$	(105,704	)	$	54,260
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(80	)	$	—		$	(80	)
Comprehensive income attributed to Vector Group Ltd.	$	55,446		$	99,951		$	6,222		$	(106,173	)	$	55,446

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Six Months Ended June 30, 2018
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	542,188		$	368,505		$	(239	)	$	910,454
Expenses:
Cost of sales	—			377,723			249,318			—			627,041
Operating, selling, administrative and general expenses	17,416			32,845			125,390			(239		)	175,412
Litigation settlement and judgment expense (income)	—			525			(2,469		)	—			(1,944		)
Management fee expense	—			5,754			—			(5,754		)	—
Operating (loss) income	(17,416		)	125,341			(3,734		)	5,754			109,945
Other income (expenses):
Interest expense	(92,969		)	(1,343		)	(56		)	—			(94,368		)
Change in fair value of derivatives embedded within convertible debt	21,284			—			—			—			21,284
Equity in losses from real estate ventures	—			—			(8,672		)	—			(8,672		)
Equity in earnings in consolidated subsidiaries	86,513						—			(86,513		)	—
Management fee income	5,754			—			—			(5,754		)	—
Other, net	8,820			(319		)	678			—			9,179
Income (loss) before provision for income taxes	11,986			123,679			(11,784		)	(86,513		)	37,368
Income tax benefit (expense)	13,043			(31,548		)	3,797			—			(14,708		)
Net income (loss)	25,029			92,131			(7,987		)	(86,513		)	22,660
Net loss attributed to non-controlling interest	—			—			2,369			—			2,369
Net income (loss) attributed to Vector Group Ltd.	$	25,029		$	92,131		$	(5,618	)	$	(86,513	)	$	25,029
Comprehensive loss attributed to non-controlling interest	$	—		$	—		$	2,369		$	—		$	2,369
Comprehensive income (loss) attributed to Vector Group Ltd.	$	25,598		$	92,415		$	(5,618	)	$	(86,797	)	$	25,598

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

				Six Months Ended June 30, 2019
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	78,661		$	148,639		$	10,158		$	(139,356	)	$	98,102
Cash flows from investing activities:
Sale of investment securities	12,942			—			—			—			12,942
Maturities of investment securities	28,610			—			—			—			28,610
Purchase of investment securities	(44,222		)	—			—			—			(44,222		)
Investments in real estate ventures	—			—			(21,908		)	—			(21,908		)
Purchase of subsidiaries	—			—			(668		)	—			(668		)
Distributions from investments in real estate ventures	—			—			23,200			—			23,200
Increase in cash surrender value of life insurance policies	(385		)	(404		)	—			—			(789		)
(Increase) decrease in restricted assets	(15		)	683			—			—			668
Investments in subsidiaries	(27,482		)	—			—			27,482			—
Proceeds from sale of fixed assets	—			8			—			—			8
Capital expenditures	—			(2,753		)	(3,567		)	—			(6,320		)
Pay downs of investment securities	545			—			—			—			545
Investments in real estate, net	—			—			(1,153		)	—			(1,153		)
Net cash used in investing activities	(30,007		)	(2,466		)	(4,096		)	27,482			(9,087		)
Cash flows from financing activities:
Deferred financing costs	—			(33		)	—			—			(33		)
Repayments of debt	(230,000		)	(621		)	(150		)	—			(230,771		)
Borrowings under revolver	—			172,224			—			—			172,224
Repayments on revolver	—			(169,727		)	—			—			(169,727		)
Capital contributions received	—			575			26,907			(27,482		)	—
Intercompany dividends paid	—			(102,739		)	(36,617		)	139,356			—
Dividends and distributions on common stock	(118,748		)	—			—			—			(118,748		)
Distributions to non-controlling interest	—			—			(285		)	—			(285		)
Net cash used in financing activities	(348,748		)	(100,321		)	(10,145		)	111,874			(347,340		)
Net (decrease) increase in cash, cash equivalents and restricted cash	(300,094		)	45,852			(4,083		)	—			(258,325		)
Cash, cash equivalents and restricted cash, beginning of period	474,880			23,849			93,000			—			591,729
Cash, cash equivalents and restricted cash, end of period	$	174,786		$	69,701		$	88,917		$	—		$	333,404

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

				Six Months Ended June 30, 2018
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	88,944		$	144,713		$	4,109		$	(115,340	)	$	122,426
Cash flows from investing activities:
Sale of investment securities	2,647			—			—			—			2,647
Maturities of investment securities	10,598			—			—			—			10,598
Purchase of investment securities	(12,402		)	—			—			—			(12,402		)
Investments in real estate ventures	—			—			(4,343		)	—			(4,343		)
Investments in real estate, net	—			—			(1,009		)	—			(1,009		)
Acquisition of a business	—			—			(403		)	—			(403		)
Distributions from investments in real estate ventures	—			—			27,134			—			27,134
Increase in cash surrender value of life insurance policies	(408		)	(401		)	—			—			(809		)
Decrease in restricted assets	22			240			—			—			262
Repayments of notes receivable	20,000			—			32			(20,000		)	32
Pay downs of investment securities	928			—			—			—			928
Investments in subsidiaries	(6,790		)	—			—			6,790			—
Capital expenditures	(15		)	(2,072		)	(6,529		)	—			(8,616		)
Net cash provided by (used in) investing activities	14,580			(2,233		)	14,882			(13,210		)	14,019
Cash flows from financing activities:
Repayments of debt	—			(20,840		)	(147		)	20,000			(987		)
Borrowings under revolver	—			134,310			—			—			134,310
Repayments on revolver	—			(137,877		)	—			—			(137,877		)
Capital contributions received	—			500			6,290			(6,790		)	—
Intercompany dividends paid	—			(83,219		)	(32,121		)	115,340			—
Dividends and distributions on common stock	(112,462		)	—			—			—			(112,462		)
Distributions to non-controlling interest	—			—			(359		)	—			(359		)
Net cash used in financing activities	(112,462		)	(107,126		)	(26,337		)	128,550			(117,375		)
Net (decrease) increase in cash, cash equivalents and restricted cash	(8,938		)	35,354			(7,346		)	—			19,070
Cash, cash equivalents and restricted cash, beginning of period	194,719			20,175			96,043			—			310,937
Cash, cash equivalents and restricted cash, end of period	$	185,781		$	55,529		$	88,697		$	—		$	330,007