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Condensed Consolidating Financial Information
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Information CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The condensed consolidating financial information is based upon the following subsidiaries being subsidiary guarantors of unsecured debt securities that may be issued by the Company: VGR Holding LLC; Liggett Group LLC; Liggett Vector Brands LLC; Vector Research LLC; Vector Tobacco Inc.; Liggett & Myers Holdings Inc.; 100 Maple LLC; V.T. Aviation LLC; VGR Aviation LLC; Eve Holdings LLC; Zoom E-Cigs LLC; and DER Holdings LLC. Each of the subsidiary guarantors is 100% owned, directly or indirectly, by the Company, and all guarantees are full and unconditional and joint and several. The Company’s investments in its consolidated subsidiaries are presented under the equity method of accounting.
The Company and the guarantors have filed a shelf registration statement for the offering of debt securities on a delayed or continuous basis and the Company is including this condensed consolidating financial information in connection therewith. Any such debt securities may be issued by the Company and guaranteed by the guarantors, but any such debt securities would not be guaranteed by any of the Company’s other subsidiaries, including those subsidiaries other than DER Holdings LLC that are engaged in the real estate businesses conducted through its subsidiary, New Valley.
Presented herein are Condensed Consolidating Balance Sheets as of December 31, 2019 and 2018, the related Condensed Consolidating Statements of Operations for the years ended December 31, 2019, 2018 and 2017, and the related Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017 of Vector Group Ltd. (Parent/Issuer), the guarantor subsidiaries (Subsidiary Guarantors) and the subsidiaries that are not guarantors (Subsidiary Non-Guarantors).
CONDENSED CONSOLIDATING BALANCE SHEETS
 
 
 
December 31, 2019
 
 
 
 
 
 
 
Subsidiary
 
 
 
Consolidated
 
Parent/
 
Subsidiary
 
Non-
 
Consolidating
 
Vector Group
 
Issuer
 
Guarantors
 
Guarantors
 
Adjustments
 
Ltd.
ASSETS:
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
272,282

 
$
27,178

 
$
71,881

 
$
—

 
$
371,341

Investment securities at fair value
129,641

 
—

 
—

 
—

 
129,641

Accounts receivable - trade, net
—

 
15,646

 
21,313

 
—

 
36,959

Intercompany receivables
44,043

 
—

 
—

 
(44,043
)
 
—

Inventories
—

 
98,762

 
—

 
—

 
98,762

Income taxes receivable, net
—

 
—

 
95

 
(95
)
 
—

Other current assets
9,159

 
9,021

 
26,731

 
—

 
44,911

Total current assets
455,125

 
150,607

 
120,020

 
(44,138
)
 
681,614

Property, plant and equipment, net
425

 
33,816

 
47,919

 
—

 
82,160

Investments in real estate, net
—

 
—

 
28,317

 
—

 
28,317

Long-term investments (of which $45,781 were carried at fair value)
61,723

 
—

 
—

 
—

 
61,723

Investments in real estate ventures
—

 
—

 
131,556

 
—

 
131,556

Operating lease right of use assets
7,085

 
4,830

 
137,663

 
—

 
149,578

Investments in consolidated subsidiaries
420,353

 
238,040

 
—

 
(658,393
)
 
—

Goodwill and other intangible assets, net
—

 
107,511

 
158,482

 
—

 
265,993

Other assets
15,080

 
46,416

 
42,652

 
—

 
104,148

Total assets
$
959,791

 
$
581,220

 
$
666,609

 
$
(702,531
)
 
$
1,505,089

LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Current portion of notes payable and long-term debt
$
163,932

 
$
45,210

 
$
10,127

 
$
(10,000
)
 
$
209,269

Current portion of fair value of derivatives embedded within convertible debt
4,999

 
—

 
—

 
—

 
4,999

Intercompany payables
—

 
236

 
43,807

 
(44,043
)
 
—

Income taxes payable, net
2,398

 
2,835

 
—

 
(95
)
 
5,138

Current payments due under the Master Settlement Agreement
—

 
34,116

 
—

 
—

 
34,116

Current operating lease liability
508

 
2,015

 
15,771

 
—

 
18,294

Other current liabilities
52,065

 
78,947

 
59,202

 
(897
)
 
189,317

Total current liabilities
223,902

 
163,359

 
128,907

 
(55,035
)
 
461,133

Notes payable, long-term debt and other obligations, less current portion
1,377,108

 
20,089

 
20,019

 
(20,000
)
 
1,397,216

Non-current employee benefits
50,806

 
17,047

 
—

 
—

 
67,853

Deferred income taxes, net
(14,492
)
 
22,620

 
25,567

 
—

 
33,695

Non-current operating lease liability
7,558

 
3,402

 
146,003

 
—

 
156,963

Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement
373

 
41,020

 
34,999

 
(3,147
)
 
73,245

Total liabilities
1,645,255

 
267,537

 
355,495

 
(78,182
)
 
2,190,105

Commitments and contingencies


 


 


 


 


Stockholders' (deficiency) equity attributed to Vector Group Ltd.
(685,464
)
 
313,683

 
310,666

 
(624,349
)
 
(685,464
)
Non-controlling interest
—

 
—

 
448

 
—

 
448

Total stockholders' (deficiency) equity
(685,464
)
 
313,683

 
311,114

 
(624,349
)
 
(685,016
)
Total liabilities and stockholders' deficiency
$
959,791

 
$
581,220

 
$
666,609

 
$
(702,531
)
 
$
1,505,089


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

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

 
 
 
Year Ended December 31, 2019
 
 
 
 
 
 
 
Subsidiary
 
 
 
Consolidated
 
  Parent/  
 
Subsidiary
 
Non-
 
Consolidating
 
Vector Group
 
  Issuer  
 
Guarantors
 
Guarantors
 
Adjustments
 
        Ltd.        
Revenues
$
—

 
$
1,115,318

 
$
788,871

 
$
(478
)
 
$
1,903,711

Expenses:
 
 
 
 
 
 
 
 
 
Cost of sales
—

 
771,130

 
530,449

 
—

 
1,301,579

Operating, selling, administrative and general expenses
38,051

 
71,001

 
261,433

 
(478
)
 
370,007

Litigation settlement and judgment expense (income)
—

 
990

 
—

 
—

 
990

Management fee expense
—

 
11,971

 
—

 
(11,971
)
 
—

Operating (loss) income
(38,051
)
 
260,226

 
(3,011
)
 
11,971

 
231,135

Other income (expenses):
 
 
 
 
 
 
 
 
 
Interest expense
(134,594
)
 
(3,838
)
 
(913
)
 
897

 
(138,448
)
Change in fair value of derivatives embedded within convertible debt
26,425

 
—

 
—

 
—

 
26,425

Loss on extinguishment of debt
(4,301
)
 
—

 
—

 
—

 
(4,301
)
Equity in losses from real estate ventures
—

 
—

 
(19,288
)
 
—

 
(19,288
)
Equity in earnings in consolidated subsidiaries
182,959

 
6,185

 
—

 
(189,144
)
 
—

Management fee income
11,971

 
—

 
—

 
(11,971
)
 
—

Other, net
30,193

 
5,340

 
5,929

 
(3,157
)
 
38,305

Income (loss) before provision for income taxes
74,602

 
267,913

 
(17,283
)
 
(191,404
)
 
133,828

Income tax benefit (expense)
26,372

 
(65,069
)
 
5,884

 
—

 
(32,813
)
Net income (loss)
100,974

 
202,844

 
(11,399
)
 
(191,404
)
 
101,015

Net income attributed to non-controlling interest
—

 
—

 
(41
)
 
—

 
(41
)
Net income (loss) attributed to Vector Group Ltd.
$
100,974

 
$
202,844

 
$
(11,440
)
 
$
(191,404
)
 
$
100,974

Comprehensive income attributed to non-controlling interest
$
—

 
$
—

 
$
(41
)
 
$
—

 
$
(41
)
Comprehensive income (loss) attributed to Vector Group Ltd.
$
103,845

 
$
204,269

 
$
(11,440
)
 
$
(192,829
)
 
$
103,845



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

 
 
 
Year Ended December 31, 2018
 
 
 
 
 
 
 
Subsidiary
 
 
 
Consolidated
 
  Parent/  
 
Subsidiary
 
Non-
 
Consolidating
 
Vector Group
 
  Issuer  
 
Guarantors
 
Guarantors
 
Adjustments
 
        Ltd.        
Revenues
$
—

 
$
1,111,572

 
$
759,168

 
$
(478
)
 
$
1,870,262

Expenses:
 
 
 
 
 
 
 
 
 
Cost of sales
—

 
787,251

 
505,233

 
—

 
1,292,484

Operating, selling, administrative and general expenses
35,332

 
66,781

 
253,878

 
(478
)
 
355,513

Litigation settlement and judgment expense
—

 
685

 
(2,469
)
 
—

 
(1,784
)
Management fee expense
—

 
11,509

 
—

 
(11,509
)
 
—

Operating (loss) income
(35,332
)
 
245,346

 
2,526

 
11,509

 
224,049

Other income (expenses):
 
 
 
 
 
 
 
 
 
Interest expense
(200,916
)
 
(2,797
)
 
(67
)
 
—

 
(203,780
)
Change in fair value of derivatives embedded within convertible debt
44,989

 
—

 
—

 
—

 
44,989

Loss on extinguishment of debt
(4,066
)
 
—

 
—

 
—

 
(4,066
)
Equity in earnings from real estate ventures
—

 
—

 
14,446

 
—

 
14,446

Equity in earnings in consolidated subsidiaries
195,582

 
3,669

 
—

 
(199,251
)
 
—

Management fee income
11,509

 
—

 
—

 
(11,509
)
 
—

Other, net
3,193

 
(997
)
 
1,725

 
—

 
3,921

Income before provision for income taxes
14,959

 
245,221

 
18,630

 
(199,251
)
 
79,559

Income tax benefit (expense)
43,146

 
(60,749
)
 
(3,949
)
 
—

 
(21,552
)
Net income
58,105

 
184,472

 
14,681

 
(199,251
)
 
58,007

Net loss attributed to non-controlling interest
—

 
—

 
98

 
—

 
98

Net income attributed to Vector Group Ltd.
$
58,105

 
$
184,472

 
$
14,779

 
$
(199,251
)
 
$
58,105

Comprehensive loss attributed to non-controlling interest
$
—

 
$
—

 
$
98

 
$
—

 
$
98

Comprehensive income attributed to Vector Group Ltd.
$
56,730

 
$
181,041

 
$
14,779

 
$
(195,820
)
 
$
56,730



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

 
Year Ended December 31, 2017
 
Parent/
Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non-
Guarantors
 
Consolidating
Adjustments
 
Consolidated
Vector Group
Ltd.
Revenues
$
—

 
$
1,080,590

 
$
727,364

 
$
(478
)
 
$
1,807,476

Expenses:
 
 
 
 
 
 
 
 
 

Cost of sales
—

 
750,768

 
477,278

 
—

 
1,228,046

Operating, selling, administrative and general expenses
34,790

 
74,107

 
228,772

 
(478
)
 
337,191

Litigation settlement and judgment expense
—

 
6,591

 
—

 
—

 
6,591

Management fee expense
—

 
11,069

 
—

 
(11,069
)
 
—

Operating (loss) income
(34,790
)
 
238,055

 
21,314

 
11,069

 
235,648

Other income (expenses):
 

 
 

 
 

 
 

 
 

Interest expense
(169,910
)
 
(3,740
)
 
(35
)
 
—

 
(173,685
)
Changes in fair value of derivatives embedded within convertible debt
35,919

 
—

 
—

 
—

 
35,919

Loss on extinguishment of debt
(34,110
)
 
—

 
—

 
—

 
(34,110
)
Equity in earnings from real estate ventures
—

 
—

 
21,395

 
—

 
21,395

Equity in earnings in consolidated subsidiaries
200,480

 
15,077

 
—

 
(215,557
)
 
—

Management fee income
11,069

 
—

 
—

 
(11,069
)
 
—

Other, net
576

 
2,101

 
1,324

 
—

 
4,001

Income before provision for income taxes
9,234

 
251,493

 
43,998

 
(215,557
)
 
89,168

Income tax benefit (expense)
75,338

 
(73,546
)
 
(210
)
 
—

 
1,582

Net income
84,572

 
177,947

 
43,788

 
(215,557
)
 
90,750

Net income attributed to non-controlling interest
—

 
—

 
(6,178
)
 
—

 
(6,178
)
Net income attributed to Vector Group Ltd.
$
84,572

 
$
177,947

 
$
37,610

 
$
(215,557
)
 
$
84,572

Comprehensive income attributed to non-controlling interest
$
—

 
$
—

 
$
(6,178
)
 
$
—

 
$
(6,178
)
Comprehensive income attributed to Vector Group Ltd.
$
83,246

 
$
161,577

 
$
37,610

 
$
(199,187
)
 
$
83,246


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 
 
 
Year Ended December 31, 2019
 
 
 
 
 
 
 
Subsidiary
 
 
 
Consolidated
 
  Parent/  
 
Subsidiary
 
Non-
 
Consolidating
 
Vector Group
 
Issuer   
 
Guarantors
 
Guarantors
 
Adjustments
 
Ltd.
Net cash provided by operating activities
$
166,855

 
$
219,173

 
$
6,654

 
$
(268,611
)
 
$
124,071

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Sale of investment securities
21,879

 
—

 
—

 
—

 
21,879

Maturities of investment securities
68,859

 
—

 
—

 
—

 
68,859

Purchase of investment securities
(87,766
)
 
—

 
—

 
—

 
(87,766
)
Proceeds from sale or liquidation of long-term investments
8,256

 
—

 
—

 
—

 
8,256

Purchase of long-term investments
(6,556
)
 
—

 
(2,667
)
 
—

 
(9,223
)
Investments in real estate ventures
—

 
—

 
(52,529
)
 
—

 
(52,529
)
Distributions from investments in real estate ventures
—

 
—

 
41,300

 
—

 
41,300

Increase in cash surrender value of life insurance policies
(235
)
 
(484
)
 
—

 
—

 
(719
)
(Increase) decrease in restricted assets
(29
)
 
1,023

 
—

 
—

 
994

Investments in subsidiaries
(59,467
)
 
—

 
—

 
59,467

 
—

Proceeds from sale of fixed assets
—

 
8

 
9

 
—

 
17

Purchase of subsidiaries
—

 
—

 
(380
)
 
—

 
(380
)
Capital expenditures
(126
)
 
(4,173
)
 
(8,276
)
 
—

 
(12,575
)
 Investments in real estate, net
—

 
—

 
(2,295
)
 
—

 
(2,295
)
 Pay downs of investment securities
1,083

 
—

 
—

 
—

 
1,083

Net cash used in investing activities
(54,102
)
 
(3,626
)
 
(24,838
)
 
59,467

 
(23,099
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from issuance of debt
230,000

 
—

 
—

 
—

 
230,000

Deferred financing costs
(9,297
)
 
(505
)
 
—

 
—

 
(9,802
)
Repayments of debt
(292,390
)
 
(820
)
 
(209
)
 
—

 
(293,419
)
Borrowings under revolver
—

 
243,688

 
—

 
—

 
243,688

Repayments on revolver
—

 
(239,526
)
 
—

 
—

 
(239,526
)
Capital contributions received
—

 
1,225

 
58,242

 
(59,467
)
 
—

Intercompany dividends paid
—

 
(215,728
)
 
(52,883
)
 
268,611

 
—

Dividends and distributions on common stock
(238,249
)
 
—

 
—

 
—

 
(238,249
)
Distributions to non-controlling interest
—

 
—

 
(286
)
 
—

 
(286
)
Tax withholdings related to net share settlements of stock option exercise
(5,415
)
 
—

 
—

 
—

 
(5,415
)
   Other
—

 
—

 
(216
)
 
—

 
(216
)
Net cash (used in) provided by financing activities
(315,351
)
 
(211,666
)
 
4,648

 
209,144

 
(313,225
)
Net (decrease) increase in cash, cash equivalents and restricted cash
(202,598
)
 
3,881

 
(13,536
)
 
—

 
(212,253
)
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
$
272,282

 
$
27,730

 
$
79,464

 
$
—

 
$
379,476



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 
 
 
Year Ended December 31, 2018
 
 
 
 
 
 
 
Subsidiary
 
 
 
Consolidated
 
  Parent/  
 
Subsidiary
 
Non-
 
Consolidating
 
Vector Group
 
Issuer   
 
Guarantors
 
Guarantors
 
Adjustments
 
Ltd.        
Net cash provided by operating activities
$
188,568

 
$
204,638

 
$
36,719

 
$
(248,091
)
 
$
181,834

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Sale of investment securities
14,673

 
3,955

 
—

 
—

 
18,628

Maturities of investment securities
24,719

 
—

 
—

 
—

 
24,719

Purchase of investment securities
(34,445
)
 
—

 
—

 
—

 
(34,445
)
Proceeds from sale or liquidation of long-term investments
19,487

 
—

 
—

 
—

 
19,487

Purchase of long-term investments
(415
)
 
—

 
—

 
—

 
(415
)
Investments in real estate ventures
—

 
—

 
(9,728
)
 
—

 
(9,728
)
Distributions from investments in real estate ventures
—

 
—

 
54,233

 
—

 
54,233

Increase in cash surrender value of life insurance policies
(280
)
 
(484
)
 
—

 
—

 
(764
)
Decrease in restricted assets
6

 
520

 
—

 
—

 
526

Issuance of notes receivable
—

 
—

 
(450
)
 
—

 
(450
)
Investments in subsidiaries
(17,224
)
 
—

 
(10,000
)
 
27,224

 
—

Proceeds from sale of fixed assets
—

 
9

 
—

 
—

 
9

Cash acquired in purchase of subsidiaries
—

 
—

 
654

 
—

 
654

Purchase of subsidiaries
—

 
(10,000
)
 
(404
)
 
—

 
(10,404
)
Repayments of notes receivable
20,000

 
—

 
67

 
(20,000
)
 
67

Capital expenditures
(22
)
 
(4,599
)
 
(13,061
)
 
—

 
(17,682
)
Investments in real estate, net
—

 
—

 
(2,583
)
 
—

 
(2,583
)
Pay downs of investment securities
1,611

 
—

 
—

 
—

 
1,611

Net cash provided by (used in) investing activities
28,110

 
(10,599
)
 
18,728

 
7,224

 
43,463

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from issuance of debt
325,000

 
—

 
—

 
—

 
325,000

Deferred financing costs
(9,400
)
 
—

 
—

 
—

 
(9,400
)
Repayments of debt
(26,750
)
 
(21,631
)
 
(308
)
 
20,000

 
(28,689
)
Borrowings under revolver


 
307,023

 
—

 
—

 
307,023

Repayments on revolver
—

 
(310,551
)
 
—

 
—

 
(310,551
)
Capital contributions received
—

 
10,800

 
16,424

 
(27,224
)
 
—

Intercompany dividends paid
—

 
(176,006
)
 
(72,085
)
 
248,091

 
—

Dividends and distributions on common stock
(225,367
)
 
—

 
—

 
—

 
(225,367
)
Distributions to non-controlling interest
—

 
—

 
(2,521
)
 
—

 
(2,521
)
Net cash provided by (used in) financing activities
63,483

 
(190,365
)
 
(58,490
)
 
240,867

 
55,495

Net increase (decrease) in cash, cash equivalents and restricted cash
280,161

 
3,674

 
(3,043
)
 
—

 
280,792

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
$
474,880

 
$
23,849

 
$
93,000

 
$
—

 
$
591,729



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 
Year Ended December 31, 2017
 
Parent/
Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non-
Guarantors
 
Consolidating
Adjustments
 
Consolidated
Vector Group
Ltd.
Net cash provided by operating activities
$
177,259

 
$
171,122

 
$
59,202

 
$
(275,997
)
 
$
131,586

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Sale of investment securities
28,761

 
—

 
—

 
—

 
28,761

Maturities of investment securities
101,097

 
—

 
—

 
—

 
101,097

Purchase of investment securities
(132,654
)
 
—

 
—

 
—

 
(132,654
)
Proceeds from sale or liquidation of long-term investments
500

 
—

 
466

 
—

 
966

Purchase of long-term investments
(31,650
)
 
—

 
(860
)
 
—

 
(32,510
)
Investments in real estate ventures
—

 
—

 
(38,807
)
 
—

 
(38,807
)
Distributions from investments in real estate ventures
—

 
—

 
61,718

 
—

 
61,718

Increase in cash surrender value of life insurance policies
(318
)
 
(484
)
 
—

 
—

 
(802
)
Decrease in restricted assets
227

 
1,783

 
240

 
—

 
2,250

Issuance of notes receivable
(20,000
)
 
—

 
(1,633
)
 
20,000

 
(1,633
)
Proceeds from sale of fixed assets
—

 
76

 
—

 
—

 
76

Purchase of subsidiaries
—

 
—

 
(6,569
)
 
—

 
(6,569
)
Investments in subsidiaries
(38,458
)
 
—

 
—

 
38,458

 
—

Capital expenditures
(35
)
 
(3,705
)
 
(16,129
)
 
—

 
(19,869
)
Investments in real estate, net
—

 
—

 
(619
)
 
—

 
(619
)
Pay downs of investment securities
2,633

 
—

 
—

 
—

 
2,633

Net cash used in investing activities
(89,897
)
 
(2,330
)
 
(2,193
)
 
58,458

 
(35,962
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 
 

Proceeds from issuance of debt
850,000

 
20,000

 
21

 
(20,000
)
 
850,021

Repayments of debt
(835,000
)
 
(1,882
)
 
(323
)
 
—

 
(837,205
)
Deferred financing costs
(19,200
)
 
—

 
—

 
—

 
(19,200
)
Borrowings under revolver
—

 
157,630

 
—

 
—

 
157,630

Repayments on revolver
—

 
(163,474
)
 
—

 
—

 
(163,474
)
Capital contributions received
—

 
2,400

 
36,058

 
(38,458
)
 
—

Intercompany dividends paid
—

 
(182,975
)
 
(93,022
)
 
275,997

 
—

Dividends and distributions on common stock
(211,488
)
 
—

 
—

 
—

 
(211,488
)
Distributions to non-controlling interest
—

 
—

 
(2,779
)
 
—

 
(2,779
)
Proceeds from exercise of Vector options
43,230

 
—

 
—

 
—

 
43,230

Net cash used in financing activities
(172,458
)
 
(168,301
)
 
(60,045
)
 
217,539

 
(183,265
)
Net (decrease) increase in cash, cash equivalents and restricted cash
(85,096
)
 
491

 
(3,036
)
 
—

 
(87,641
)
Cash, cash equivalents and restricted cash, beginning of period
279,815

 
19,684

 
99,079

 
—

 
398,578

Cash, cash equivalents and restricted cash, end of period
$
194,719

 
$
20,175

 
$
96,043

 
$
—

 
$
310,937