EX-99.2 6 a2022q3ex992.htm EX-99.2 Document

EXHIBIT 99.2
Vector Group Ltd.
Condensed Consolidating Financial Statements
September 30, 2022
(in thousands of dollars)

Presented herein are Condensed Consolidating Balance Sheet as of September 30, 2022 and the related Condensed Consolidating Statements of Operations for the nine months ended September 30, 2022 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
September 30, 2022
SubsidiaryConsolidated
Parent/SubsidiaryNon-ConsolidatingVector Group
IssuerGuarantorsGuarantorsAdjustmentsLtd.
ASSETS:
Current assets:
Cash and cash equivalents$209,993 $174,386 $584 $— $384,963 
Investment securities at fair value115,824 — — — 115,824 
Accounts receivable - trade, net— 27,141 — — 27,141 
Intercompany receivables2,427 — — (2,427)— 
Inventories— 86,101 — — 86,101 
Income taxes receivable, net39,080 — 3,181 (39,485)2,776 
Other current assets1,006 8,073 — — 9,079 
Total current assets368,330 295,701 3,765 (41,912)625,884 
Property, plant and equipment, net365 29,887 9,893 — 40,145 
Long-term investment securities44,394 — — — 44,394 
Investments in real estate ventures— — 116,840 — 116,840 
Operating lease right-of-use assets3,658 4,819 — — 8,477 
Investments in consolidated subsidiaries236,106 — — (236,106)— 
Intangible assets— 107,511 — — 107,511 
Other assets16,811 86,221 3,000 — 106,032 
Total assets$669,664 $524,139 $133,498 $(278,018)$1,049,283 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt$— $51 $— $— $51 
Intercompany payables— 448 1,979 (2,427)— 
Income taxes payable, net— 39,485 — (39,485)— 
Current payments due under the Master Settlement Agreement— 214,260 — — 214,260 
Current operating lease liability1,728 1,961 — — 3,689 
Other current liabilities39,546 86,394 392 — 126,332 
Total current liabilities41,274 342,599 2,371 (41,912)344,332 
Notes payable, long-term debt and other obligations, less current portion1,389,140 15 — — 1,389,155 
Non-current employee benefits61,454 8,096 — — 69,550 
Deferred income taxes, net(5,565)24,640 13,336 — 32,411 
Non-current operating lease liability2,887 3,289 — — 6,176 
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement3,784 26,814 371 — 30,969 
Total liabilities1,492,974 405,453 16,078 (41,912)1,872,593 
Commitments and contingencies
Total stockholders' (deficiency) equity(823,310)118,686 117,420 (236,106)(823,310)
Total liabilities and stockholders' deficiency$669,664 $524,139 $133,498 $(278,018)$1,049,283 


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Nine Months Ended September 30, 2022
SubsidiaryConsolidated
  Parent/  SubsidiaryNon-ConsolidatingVector Group
  Issuer  GuarantorsGuarantorsAdjustments        Ltd.        
Revenues$— $1,061,355 $16,657 $(773)$1,077,239 
Expenses:
Cost of sales— 743,749 7,327 — 751,076 
Operating, selling, administrative and general expenses21,898 53,247 1,893 (773)76,265 
Litigation settlement and judgment expense— 160 — — 160 
Management fee expense— 10,126 — (10,126)— 
Operating (loss) income(21,898)254,073 7,437 10,126 249,738 
Other income (expenses):
Interest expense(81,459)(1,961)— — (83,420)
Gain on extinguishment of debt412 — — — 412 
Equity in losses from real estate ventures— — (4,240)— (4,240)
Equity in losses from investments(5,172)— — — (5,172)
Equity in earnings (losses) in consolidated subsidiaries195,491 — — (195,491)— 
Management fee income10,126 — — (10,126)— 
Other, net(9,759)4,797 2,565 (2,646)(5,043)
Income before provision for income taxes87,741 256,909 5,762 (198,137)152,275 
Income tax benefit (expense)22,810 (63,568)(966)— (41,724)
Net income$110,551 $193,341 $4,796 $(198,137)$110,551 
Comprehensive income$111,405 $193,399 $4,796 $(198,195)$111,405