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 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, 2023 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				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income	$	54,178	$	38,089	$	88,978	$	72,830
Income attributable to participating securities	(1,355)		(1,043)		(2,256)		(1,973)
Net income available to common stockholders	$	52,823	$	37,046	$	86,722	$	70,857


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2024	2023	2024	2023
Weighted-average shares for basic EPS	153,740,654	153,214,347	153,595,959	153,114,197

Incremental shares related to stock options and non-vested restricted stock	229,116	109,203	211,087	129,085
Weighted-average shares for diluted EPS	153,969,770	153,323,550	153,807,046	153,243,282

The following non-vested restricted stock was outstanding during the three and six months ended June 30, 2024 and 2023, respectively, and was not included in the computation of diluted EPS because the impact of the per share expense associated


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023


Weighted-average shares of non-vested restricted stock	375,000		—		412,775		—
Weighted-average expense per share	$	12.90	$	—	$	12.90	$	—


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023

Interest and dividend income	$	6,028	$	4,916	$	11,487	$	8,851






Net (losses) gains recognized on investment securities	(178)		213		1,018		207
Net periodic benefit cost other than the service costs	(267)		(339)		(535)		(678)


Other income	2		1		—		31
Other, net	$	5,585	$	4,791	$	11,970	$	8,411


	June 30, 2024		December 31, 2023
Accounts payable	$	6,148	$	6,749
Accrued promotional expenses	58,067		51,146
Accrued excise and payroll taxes payable, net	17,386		13,144
Accrued interest	30,041		30,041
Accrued salaries and benefits	7,811		10,952
Allowance for sales returns	13,614		12,675
Other current liabilities	11,346		6,973
Total other current liabilities	$	144,413	$	131,680


	June 30, 2024		December 31, 2023
Cash and cash equivalents	$	390,758	$	268,600

Restricted cash and cash equivalents included in other assets	875		1,506
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows	$	391,633	$	270,106

Agreements with Douglas Elliman. The Company received $1,050 and $2,100 under the Transition Services Agreement for the three and six months ended June 30, 2024 and 2023, respectively, and $1,000 and $1,595 under the Aircraft Lease Agreements for the three and six months ended June 30, 2024 and $734 and $1,296 for the three and six months ended June 30, 2023, 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 $793 and $2,017 for the three and six months ended June 30, 2024 and $0 and $842 for the three and six months ended June 30, 2023.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The ASU requires that all public entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The ASU is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The ASU requires that all public entities improve the reportable segment disclosure primarily through enhanced disclosures about significant segment expenses. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

On March 6, 2024, the SEC passed rule changes that will require registrants to provide certain climate-related information in their registration statements and annual reports. The rules 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 will also include disclosure of a registrant's greenhouse gas emissions. In addition, the rules will require registrants to present certain climate-related financial metrics in their audited financial statements. On April 4, 2024, the SEC voluntarily stayed the rules pending the resolution of certain legal challenges. The Company is currently evaluating the impact of the rule changes.