The condensed consolidated financial statements of Vector Group Ltd. (the “Company” or “Vector”) include the accounts of Liggett Group LLC (“Liggett”), Vector Tobacco LLC (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), New Valley LLC (“New Valley”) and other less significant subsidiaries. All significant intercompany balances and transactions have been eliminated.

Liggett and Vector Tobacco are engaged in the manufacture and sale of cigarettes in the United States. Liggett Vector Brands coordinates Liggett and Vector Tobacco’s sales and marketing efforts. Certain references to “Liggett” refer to the Company’s tobacco operations, including the business of Liggett and Vector Tobacco, unless otherwise specified. New Valley is engaged in the real estate business.

The unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and, in management’s opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair statement of the results for the periods presented. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (“SEC”). The consolidated results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the entire year.

The Company records distributions on its common stock as dividends in its condensed consolidated statements of stockholders’ deficiency to the extent of retained earnings and net income for the respective fiscal year. Any amounts exceeding retained earnings and net income are recorded as a reduction to additional paid-in capital to the extent paid-in-capital is available and then to accumulated deficit.


	Three Months Ended
	March 31,
		2023		2022
Net income		$	34,741	$	32,542
Income attributable to participating securities		(930)		(983)
Net income available to common stockholders		$	33,811	$	31,559


	Three Months Ended
	March 31,
		2023	2022
Weighted-average shares for basic EPS		153,012,937	152,586,900

Incremental shares related to stock options and non-vested restricted stock		147,499	158,353
Weighted-average shares for diluted EPS		153,160,436	152,745,253

The following non-vested restricted stock were outstanding during the three months ended March 31, 2023 and 2022 and were not included in the computation of diluted EPS because the impact of the per share expense associated with the stock options and the restricted stock was greater than the average market price of the common shares during the respective periods.


	Three Months Ended
	March 31,
		2023		2022

Interest and dividend income		$	3,935	$	450






Net losses recognized on investment securities		(6)		(3,039)
Net periodic benefit cost other than the service costs		(339)		(236)


Other income		30		1,680
Other, net		$	3,620	$	(1,145)


	March 31, 2023		December 31, 2022
Accounts payable	$	5,542	$	6,351
Accrued promotional expenses	54,244		56,645
Accrued excise and payroll taxes payable, net	23,574		17,160
Accrued interest	31,812		30,451
Accrued salaries and benefits	3,263		9,614
Allowance for sales returns	9,084		7,526
Other current liabilities	11,538		7,423
Total other current liabilities	$	139,057	$	135,170


	March 31, 2023		December 31, 2022
Cash and cash equivalents	$	281,868	$	224,580

Restricted cash and cash equivalents included in other assets	26,065		25,794
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows	$	307,933	$	250,374

Agreements with Douglas Elliman. The Company received $1,050 and $1,050 under the Transition Services Agreement and $562 and $491 under the Aircraft Lease Agreement during the three months ended March 31, 2023 and 2022, respectively.

Real estate venture investments. Douglas Elliman has been engaged by the developers as the sole broker or the co-broker for several of the real estate development projects that New Valley owns an interest in through its real estate venture investments. Douglas Elliman had gross commissions from these projects of approximately $842 and $900 for the three months ended March 31, 2023 and 2022, respectively.

In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires that an acquirer recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements.

On March 21, 2022, the SEC proposed rule changes that would require registrants to provide certain climate-related information in their registration statements and annual reports. The proposed rules would require information about a registrant's climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks would also include disclosure of a registrant's greenhouse gas emissions, which have become a commonly used metric to assess a registrant's exposure to such risks. In addition, under the proposed rules, certain climate-related financial metrics would be required in a registrant's audited financial statements. The Company is currently evaluating the impact of the proposed rule changes.