Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

				June 30, 2020
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	261,167		$	217,748	$	61,448	$	—		$	540,363
Investment securities at fair value	88,643			—		—		—			88,643
Accounts receivable - trade, net	—			13,222		19,538		—			32,760
Intercompany receivables	45,946			—		—		(45,946		)	—
Inventories	—			98,609		—		—			98,609
Income taxes receivable, net	—			—		7,696		(7,696		)	—
Other current assets	2,560			8,069		28,209		(475		)	38,363
Total current assets	398,316			337,648		116,891		(54,117		)	798,738
Property, plant and equipment, net	413			32,245		44,959		—			77,617
Investments in real estate, net	—			—		28,876		—			28,876
Long-term investment securities at fair value	33,232			—		—		—			33,232
Investments in real estate ventures	—			—		115,377		—			115,377
Operating lease right-of-use assets	6,521			3,918		138,223		—			148,662
Investments in consolidated subsidiaries	365,814			163,958		—		(529,772		)	—
Goodwill and other intangible assets, net	—			107,511		100,148		—			207,659
Other assets	30,250			47,092		44,244		—			121,586
Total assets	$	834,546		$	692,372	$	588,718	$	(583,889	)	$	1,531,747
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—		$	8,816	$	8,787	$	(8,750	)	$	8,853
Intercompany payables	—			167		45,779		(45,946		)	—
Income taxes payable, net	37,394			7,133		—		(7,696		)	36,831
Current payments due under the Master Settlement Agreement	—			102,125		—		—			102,125
Current operating lease liability	754			1,694		15,820		—			18,268
Other current liabilities	45,267			223,205		63,780		(218		)	332,034
Total current liabilities	83,415			343,140		134,166		(62,610		)	498,111
Notes payable, long-term debt and other obligations, less current portion	1,378,871			18,827		19,246		(18,750		)	1,398,194
Non-current employee benefits	51,599			9,426		—		—			61,025
Deferred income taxes, net	(17,310		)	21,756		7,992		—			12,438
Non-current operating lease liability	6,787			2,790		149,719		—			159,296
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement	388			37,724		35,092		(1,317		)	71,887
Total liabilities	1,503,750			433,663		346,215		(82,677		)	2,200,951
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(669,204		)	258,709		242,503		(501,212		)	(669,204		)
Non-controlling interest	—			—		—		—			—
Total stockholders' (deficiency) equity	(669,204		)	258,709		242,503		(501,212		)	(669,204		)
Total liabilities and stockholders' deficiency	$	834,546		$	692,372	$	588,718	$	(583,889	)	$	1,531,747

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 investment securities at fair value	45,781			—		—		—			45,781
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	31,022			46,416		42,652		—			120,090
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 Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Three Months Ended June 30, 2020
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	312,630		$	133,250		$	(120	)	$	445,760
Expenses:
Cost of sales	—			214,067			90,818			—			304,885
Operating, selling, administrative and general expenses	8,429			16,379			46,376			(120		)	71,064
Litigation settlement and judgment expense	—			53			—			—			53
Management fee expense	—			3,114			—			(3,114		)	—
Restructuring charges	—			—			2,961			—			2,961
Operating (loss) income	(8,429		)	79,017			(6,905		)	3,114			66,797
Other income (expenses):
Interest expense	(28,666		)	(690		)	(106		)	104			(29,358		)
Change in fair value of derivatives embedded within convertible debt	1,669			—			—			—			1,669
Equity in losses from real estate ventures	—			—			(12,260		)	—			(12,260		)
Equity in earnings from investments	2,207			—			—			—			2,207
Equity in earnings in consolidated subsidiaries	46,526			(5,042		)	—			(41,484		)	—
Management fee income	3,114			—			—			(3,114		)	—
Other, net	5,154			(78		)	2,325			234			7,635
Income (loss) before provision for income taxes	21,575			73,207			(16,946		)	(41,146		)	36,690
Income tax benefit (expense)	4,199			(19,644		)	4,529			—			(10,916		)
Net income (loss)	25,774			53,563			(12,417		)	(41,146		)	25,774
Net income (loss) attributed to Vector Group Ltd.	$	25,774		$	53,563		$	(12,417	)	$	(41,146	)	$	25,774
Comprehensive income (loss) attributed to Vector Group Ltd.	$	26,531		$	53,713		$	(12,417	)	$	(41,296	)	$	26,531

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 losses from investments	(1,685		)	—			—			—			(1,685		)
Equity in earnings in consolidated subsidiaries	66,163			15,138			—			(81,301		)	—
Management fee income	2,992			—			—			(2,992		)	—
Other, net	3,702			447			632			—			4,781
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 income attributed to Vector Group Ltd.	$	39,307		$	65,770		$	15,307		$	(81,077	)	$	39,307
Comprehensive income attributed to Vector Group Ltd.	$	39,912		$	66,004		$	15,307		$	(81,311	)	$	39,912

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

				Six Months Ended June 30, 2020
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	599,818		$	300,669		$	(239	)	$	900,248
Expenses:
Cost of sales	—			411,357			204,151			—			615,508
Operating, selling, administrative and general expenses	17,593			34,440			109,787			(239		)	161,581
Litigation settlement and judgment expense	—			53			—			—			53
Impairments of goodwill and intangible assets	—			—			58,252			—			58,252
Management fee expense	—			6,228			—			(6,228		)	—
Restructuring charges	—			—			2,961			—			2,961
Operating (loss) income	(17,593		)	147,740			(74,482		)	6,228			61,893
Other income (expenses):
Interest expense	(63,405		)	(1,576		)	(222		)	218			(64,985		)
Change in fair value of derivatives embedded within convertible debt	4,999			—			—			—			4,999
Equity in losses from real estate ventures	—			—			(18,765		)	—			(18,765		)
Equity in earnings from investments	52,359			—			—			—			52,359
Equity in earnings in consolidated subsidiaries	43,185			(74,082		)	—			30,897			—
Management fee income	6,228			—			—			(6,228		)	—
Other, net	(5,700		)	2,229			2,282			(1,831		)	(3,020		)
Income (loss) before provision for income taxes	20,073			74,311			(91,187		)	29,284			32,481
Income tax benefit (expense)	2,470			(36,746		)	24,338			—			(9,938		)
Net income (loss)	22,543			37,565			(66,849		)	29,284			22,543
Net income (loss) attributed to Vector Group Ltd.	$	22,543		$	37,565		$	(66,849	)	$	29,284		$	22,543
Comprehensive income (loss) attributed to Vector Group Ltd.	$	23,522		$	37,864		$	(66,849	)	$	28,985		$	23,522

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 losses from investments	(323		)	—			—			—			(323		)
Equity in earnings in consolidated subsidiaries	101,428			4,724			—			(106,152		)	—
Management fee income	5,985			—			—			(5,985		)	—
Other, net	10,285			600			1,336			—			12,221
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 Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

				Six Months Ended June 30, 2020
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by (used in) operating activities	$	126,021		$	325,721		$	(5,489	)	$	(104,924	)	$	341,329
Cash flows from investing activities:
Sale of investment securities	19,555			—			—			—			19,555
Maturities of investment securities	31,574			—			—			—			31,574
Purchase of investment securities	(16,867		)	—			—			—			(16,867		)
Proceeds from sale or liquidation of long-term investments	23,407			—			—			—			23,407
Purchase of long-term investments	(5,238		)	—			—			—			(5,238		)
Investments in real estate ventures	—			—			(3,858		)	—			(3,858		)
Distributions from investments in real estate ventures	—			—			5,172			—			5,172
Increase in cash surrender value of life insurance policies	(340		)	(411		)	—			—			(751		)
(Increase) decrease in restricted assets	(13		)	100			—			—			87
Investments in subsidiaries	(9,164		)	—			—			9,164			—
Capital expenditures	(20		)	(2,973		)	(3,249		)	—			(6,242		)
Pay downs of investment securities	415			—			—			—			415
Investments in real estate, net	—			—			(679		)	—			(679		)
Net cash provided by (used in) investing activities	43,309			(3,284		)	(2,614		)	9,164			46,575
Cash flows from financing activities:
Proceeds from issuance of debt	—			—			531			—			531
Repayments of debt	(169,610		)	(204		)	(2,653		)	—			(172,467		)
Borrowings under revolver	—			130,641			—			—			130,641
Repayments on revolver	—			(165,593		)	—			—			(165,593		)
Capital contributions received	—			550			8,614			(9,164		)	—
Intercompany dividends paid	—			(97,259		)	(7,665		)	104,924			—
Dividends and distributions on common stock	(63,478		)	—			—			—			(63,478		)
Distributions to non-controlling interest	—			—			(448		)	—			(448		)
Proceeds from issuance of Vector stock	52,563			—			—			—			52,563
Other	80			—			(75		)	—			5
Net cash used in financing activities	(180,445		)	(131,865		)	(1,696		)	95,760			(218,246		)
Net (decrease) increase in cash, cash equivalents and restricted cash	(11,115		)	190,572			(9,799		)	—			169,658
Cash, cash equivalents and restricted cash, beginning of period	272,282			27,730			79,464			—			379,476
Cash, cash equivalents and restricted cash, end of period	$	261,167		$	218,302		$	69,665		$	—		$	549,134

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		)
Investments in real estate, net	—			—			(1,153		)	—			(1,153		)
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
Pay downs of investment securities	545			—			—			—			545
Proceeds from sale of fixed assets	—			8			—			—			8
Investments in subsidiaries	(27,482		)	—			—			27,482			—
Capital expenditures	—			(2,753		)	(3,567		)	—			(6,320		)
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