We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Vector Group Ltd | NYSE:VGR | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.30 | -2.90% | 10.03 | 10.395 | 10.23 | 10.36 | 819,728 | 00:57:26 |
|
|
|
|
Delaware
|
1-5759
|
65-0949535
|
(State or other jurisdiction of incorporation
|
Commission File Number
|
(I.R.S. Employer Identification No.)
|
incorporation or organization)
|
|
|
|
x
Large accelerated filer
|
o
Accelerated filer
|
o
Non-accelerated filer
|
o
Smaller reporting company
|
o
Emerging Growth Company
|
|
|
(Do not check if a smaller reporting company)
|
|
|
|
|
Page
|
PART I. FINANCIAL INFORMATION
|
|
|
|
Item 1. Vector Group Ltd. Condensed Consolidated Financial Statements (Unaudited):
|
|
|
|
Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016
|
|
|
|
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2017 and 2016
|
|
|
|
Condensed Consolidated Statements of Stockholders' Deficiency for the six months ended June 30, 2017
|
|
|
|
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016
|
|
|
|
Notes to Condensed Consolidated Financial Statements
|
|
|
|
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
|
|
|
Item 4. Controls and Procedures
|
|
|
|
PART II. OTHER INFORMATION
|
|
|
|
Item 1. Legal Proceedings
|
|
|
|
Item 1A. Risk Factors
|
|
|
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
|
Item 6. Exhibits
|
|
|
|
SIGNATURE
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
ASSETS:
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
410,409
|
|
|
$
|
393,530
|
|
Investment securities available for sale
|
146,223
|
|
|
156,903
|
|
||
Accounts receivable - trade, net
|
25,479
|
|
|
18,801
|
|
||
Inventories
|
87,979
|
|
|
89,834
|
|
||
Income taxes receivable, net
|
8,178
|
|
|
16,110
|
|
||
Restricted assets
|
8,797
|
|
|
7,330
|
|
||
Other current assets
|
29,458
|
|
|
22,955
|
|
||
Total current assets
|
716,523
|
|
|
705,463
|
|
||
Property, plant and equipment, net
|
80,994
|
|
|
80,448
|
|
||
Investments in real estate, net
|
23,675
|
|
|
23,640
|
|
||
Long-term investments
|
75,171
|
|
|
53,197
|
|
||
Investments in real estate ventures
|
201,356
|
|
|
221,258
|
|
||
Restricted assets
|
3,754
|
|
|
3,986
|
|
||
Goodwill and other intangible assets, net
|
261,189
|
|
|
261,918
|
|
||
Prepaid pension costs
|
22,882
|
|
|
22,273
|
|
||
Other assets
|
34,742
|
|
|
31,852
|
|
||
Total assets
|
$
|
1,420,286
|
|
|
$
|
1,404,035
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current portion of notes payable and long-term debt
|
$
|
20,941
|
|
|
$
|
39,508
|
|
Current payments due under the Master Settlement Agreement
|
68,039
|
|
|
16,192
|
|
||
Current portion of employee benefits
|
937
|
|
|
937
|
|
||
Litigation accruals
|
5,371
|
|
|
3,659
|
|
||
Other current liabilities
|
145,825
|
|
|
135,852
|
|
||
Total current liabilities
|
241,113
|
|
|
196,148
|
|
||
Notes payable, long-term debt and other obligations, less current portion
|
1,158,877
|
|
|
1,132,943
|
|
||
Fair value of derivatives embedded within convertible debt
|
95,627
|
|
|
112,332
|
|
||
Non-current employee benefits
|
59,384
|
|
|
58,958
|
|
||
Deferred income taxes, net
|
85,176
|
|
|
93,085
|
|
||
Payments due under the Master Settlement Agreement
|
23,642
|
|
|
22,257
|
|
||
Litigation accruals
|
23,574
|
|
|
27,513
|
|
||
Other liabilities
|
17,414
|
|
|
14,071
|
|
||
Total liabilities
|
1,704,807
|
|
|
1,657,307
|
|
||
Commitments and contingencies (Note 7)
|
|
|
|
||||
Stockholders' deficiency:
|
|
|
|
||||
Preferred stock, par value $1.00 per share, 10,000,000 shares authorized
|
—
|
|
|
—
|
|
||
Common stock, par value $0.10 per share, 250,000,000 shares authorized,128,934,081 and 127,739,481 shares issued and outstanding
|
12,893
|
|
|
12,774
|
|
||
Accumulated deficit
|
(368,140
|
)
|
|
(333,529
|
)
|
||
Accumulated other comprehensive loss
|
(12,606
|
)
|
|
(11,245
|
)
|
||
Total Vector Group Ltd. stockholders' deficiency
|
(367,853
|
)
|
|
(332,000
|
)
|
||
Non-controlling interest
|
83,332
|
|
|
78,728
|
|
||
Total stockholders' deficiency
|
(284,521
|
)
|
|
(253,272
|
)
|
||
Total liabilities and stockholders' deficiency
|
$
|
1,420,286
|
|
|
$
|
1,404,035
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Tobacco*
|
$
|
272,177
|
|
|
$
|
255,498
|
|
|
$
|
529,631
|
|
|
$
|
476,513
|
|
Real estate
|
199,812
|
|
|
182,765
|
|
|
357,566
|
|
|
342,512
|
|
||||
E-cigarettes
|
—
|
|
|
10
|
|
|
—
|
|
|
48
|
|
||||
Total Revenues
|
471,989
|
|
|
438,273
|
|
|
887,197
|
|
|
819,073
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of sales:
|
|
|
|
|
|
|
|
||||||||
Tobacco*
|
186,907
|
|
|
168,607
|
|
|
362,661
|
|
|
305,345
|
|
||||
Real estate
|
127,987
|
|
|
115,017
|
|
|
228,156
|
|
|
214,695
|
|
||||
E-cigarettes
|
—
|
|
|
7
|
|
|
—
|
|
|
13
|
|
||||
Total cost of sales
|
314,894
|
|
|
283,631
|
|
|
590,817
|
|
|
520,053
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating, selling, administrative and general expenses
|
83,183
|
|
|
83,922
|
|
|
167,952
|
|
|
163,750
|
|
||||
Litigation settlement and judgment expense
|
102
|
|
|
—
|
|
|
1,687
|
|
|
2,350
|
|
||||
Restructuring charges
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||
Operating income
|
73,810
|
|
|
70,720
|
|
|
126,741
|
|
|
132,879
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other income (expenses):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(46,691
|
)
|
|
(36,369
|
)
|
|
(92,912
|
)
|
|
(67,089
|
)
|
||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
(34,110
|
)
|
|
—
|
|
||||
Change in fair value of derivatives embedded within convertible debt
|
8,134
|
|
|
7,416
|
|
|
16,705
|
|
|
17,110
|
|
||||
Equity in earnings from real estate ventures
|
15,291
|
|
|
2,813
|
|
|
26,404
|
|
|
2,306
|
|
||||
Equity in (losses) earnings from investments
|
(1,459
|
)
|
|
1,089
|
|
|
(2,520
|
)
|
|
(582
|
)
|
||||
Gain on sale of investment securities available for sale
|
37
|
|
|
139
|
|
|
187
|
|
|
706
|
|
||||
Impairment of investment securities available for sale
|
(87
|
)
|
|
(49
|
)
|
|
(126
|
)
|
|
(4,862
|
)
|
||||
Other, net
|
1,338
|
|
|
581
|
|
|
2,997
|
|
|
1,628
|
|
||||
Income before provision for income taxes
|
50,373
|
|
|
46,340
|
|
|
43,366
|
|
|
82,096
|
|
||||
Income tax expense
|
18,827
|
|
|
19,003
|
|
|
16,045
|
|
|
33,366
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
31,546
|
|
|
27,337
|
|
|
27,321
|
|
|
48,730
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income attributed to non-controlling interest
|
(4,735
|
)
|
|
(3,322
|
)
|
|
(4,737
|
)
|
|
(5,377
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income attributed to Vector Group Ltd.
|
$
|
26,811
|
|
|
$
|
24,015
|
|
|
$
|
22,584
|
|
|
$
|
43,353
|
|
|
|
|
|
|
|
|
|
||||||||
Per basic common share:
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income applicable to common share attributed to Vector Group Ltd.
|
$
|
0.20
|
|
|
$
|
0.19
|
|
|
$
|
0.16
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
||||||||
Per diluted common share:
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income applicable to common share attributed to Vector Group Ltd.
|
$
|
0.20
|
|
|
$
|
0.19
|
|
|
$
|
0.16
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per share
|
$
|
0.40
|
|
|
$
|
0.38
|
|
|
$
|
0.80
|
|
|
$
|
0.76
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
||||||||||||
Net income
|
$
|
31,546
|
|
|
$
|
27,337
|
|
|
$
|
27,321
|
|
|
$
|
48,730
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized losses on investment securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Change in net unrealized losses
|
(3,043
|
)
|
|
(820
|
)
|
|
(3,219
|
)
|
|
(5,454
|
)
|
||||
Net unrealized losses (gains) reclassified into net income
|
50
|
|
|
(90
|
)
|
|
(61
|
)
|
|
4,156
|
|
||||
Net unrealized losses on investment securities available for sale
|
(2,993
|
)
|
|
(910
|
)
|
|
(3,280
|
)
|
|
(1,298
|
)
|
||||
|
|
|
|
|
|
|
|
|
|||||||
Net change in forward contracts
|
1
|
|
|
9
|
|
|
2
|
|
|
18
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net change in pension-related amounts -
|
|
|
|
|
|
|
|
||||||||
Amortization of loss
|
489
|
|
|
445
|
|
|
977
|
|
|
890
|
|
||||
Net change in pension-related amounts
|
489
|
|
|
445
|
|
|
977
|
|
|
890
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss
|
(2,503
|
)
|
|
(456
|
)
|
|
(2,301
|
)
|
|
(390
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax effect on:
|
|
|
|
|
|
|
|
||||||||
Change in net unrealized losses on investment securities
|
1,235
|
|
|
337
|
|
|
1,311
|
|
|
2,245
|
|
||||
Net unrealized losses (gains) reclassified into net income on investment securities
|
(20
|
)
|
|
37
|
|
|
25
|
|
|
(1,708
|
)
|
||||
Forward contracts
|
1
|
|
|
(4
|
)
|
|
—
|
|
|
(7
|
)
|
||||
Pension-related amounts
|
(198
|
)
|
|
(183
|
)
|
|
(396
|
)
|
|
(366
|
)
|
||||
Income tax benefit on other comprehensive loss
|
1,018
|
|
|
187
|
|
|
940
|
|
|
164
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss, net of tax
|
(1,485
|
)
|
|
(269
|
)
|
|
(1,361
|
)
|
|
(226
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
30,061
|
|
|
27,068
|
|
|
25,960
|
|
|
48,504
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income attributed to non-controlling interest
|
(4,735
|
)
|
|
(3,322
|
)
|
|
(4,737
|
)
|
|
(5,377
|
)
|
||||
Comprehensive income attributed to Vector Group Ltd.
|
$
|
25,326
|
|
|
$
|
23,746
|
|
|
$
|
21,223
|
|
|
$
|
43,127
|
|
|
Vector Group Ltd. Stockholders' Deficiency
|
|
|
|
||||||||||||||||||||||
|
|
|
Additional Paid-In
|
|
|
|
Accumulated
Other Comprehensive
|
|
Non-controlling
|
|
|
|||||||||||||||
|
Common Stock
|
|
|
Accumulated
|
|
|
|
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit
|
|
Loss
|
|
Interest
|
|
Total
|
|||||||||||||
Balance as of January 1, 2017
|
127,739,481
|
|
|
$
|
12,774
|
|
|
$
|
—
|
|
|
$
|
(333,529
|
)
|
|
$
|
(11,245
|
)
|
|
$
|
78,728
|
|
|
$
|
(253,272
|
)
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
22,584
|
|
|
—
|
|
|
4,737
|
|
|
27,321
|
|
||||||
Total other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,361
|
)
|
|
—
|
|
|
(1,361
|
)
|
||||||
Total comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,960
|
|
||||||
Distributions and dividends on common stock
|
—
|
|
|
—
|
|
|
(49,139
|
)
|
|
(57,195
|
)
|
|
—
|
|
|
—
|
|
|
(106,334
|
)
|
||||||
Issuance of common stock
|
2,000,000
|
|
|
200
|
|
|
43,030
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,230
|
|
||||||
Cancellation of shares under share lending agreement
|
(805,400
|
)
|
|
(81
|
)
|
|
81
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
6,028
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,028
|
|
||||||
Distributions to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(133
|
)
|
|
(133
|
)
|
||||||
Balance as of June 30, 2017
|
128,934,081
|
|
|
$
|
12,893
|
|
|
$
|
—
|
|
|
$
|
(368,140
|
)
|
|
$
|
(12,606
|
)
|
|
$
|
83,332
|
|
|
$
|
(284,521
|
)
|
|
Six Months Ended
|
|
Six Months Ended
|
||||
|
June 30,
2017 |
|
June 30,
2016 |
||||
Net cash provided by operating activities
|
$
|
117,611
|
|
|
$
|
78,825
|
|
Cash flows from investing activities:
|
|
|
|
||||
Sale of investment securities
|
22,396
|
|
|
67,033
|
|
||
Maturities of investment securities
|
93,368
|
|
|
343
|
|
||
Purchase of investment securities
|
(109,891
|
)
|
|
(56,691
|
)
|
||
Proceeds from sale or liquidation of long-term investments
|
466
|
|
|
1,000
|
|
||
Purchase of long-term investments
|
(26,000
|
)
|
|
(50
|
)
|
||
Investments in real estate ventures
|
(8,454
|
)
|
|
(11,806
|
)
|
||
Distributions from investments in real estate ventures
|
23,338
|
|
|
17,983
|
|
||
Increase in cash surrender value of life insurance policies
|
(854
|
)
|
|
(393
|
)
|
||
(Increase) decrease in restricted assets
|
(1,235
|
)
|
|
2,674
|
|
||
Issuance of notes receivable
|
(1,500
|
)
|
|
—
|
|
||
Proceeds from sale of fixed assets
|
75
|
|
|
5
|
|
||
Capital expenditures
|
(8,346
|
)
|
|
(7,615
|
)
|
||
Pay downs of investment securities
|
1,620
|
|
|
4,926
|
|
||
Investments in real estate, net
|
(205
|
)
|
|
(81
|
)
|
||
Net cash (used in) provided by investing activities
|
(15,222
|
)
|
|
17,328
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from issuance of debt
|
850,020
|
|
|
243,282
|
|
||
Deferred financing costs
|
(19,200
|
)
|
|
(6,600
|
)
|
||
Repayments of debt
|
(836,145
|
)
|
|
(2,917
|
)
|
||
Borrowings under revolver
|
110,979
|
|
|
89,695
|
|
||
Repayments on revolver
|
(129,479
|
)
|
|
(80,223
|
)
|
||
Dividends and distributions on common stock
|
(104,750
|
)
|
|
(97,846
|
)
|
||
Contributions from non-controlling interest
|
—
|
|
|
248
|
|
||
Distributions to non-controlling interest
|
(165
|
)
|
|
(7,422
|
)
|
||
Proceeds from issuance of Vector common stock
|
43,230
|
|
|
—
|
|
||
Net cash (used in) provided by financing activities
|
(85,510
|
)
|
|
138,217
|
|
||
Net increase in cash and cash equivalents
|
16,879
|
|
|
234,370
|
|
||
Cash and cash equivalents, beginning of period
|
393,530
|
|
|
240,368
|
|
||
Cash and cash equivalents, end of period
|
$
|
410,409
|
|
|
$
|
474,738
|
|
1
.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
(a)
|
Basis of Presentation
:
|
(b)
|
Distributions and Dividends on Common Stock
:
|
(c)
|
Revenue Recognition
:
|
(d)
|
Earnings Per Share (“EPS”)
:
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income attributed to Vector Group Ltd.
|
$
|
26,811
|
|
|
$
|
24,015
|
|
|
$
|
22,584
|
|
|
$
|
43,353
|
|
Income attributed to participating securities
|
(1,501
|
)
|
|
(784
|
)
|
|
(2,984
|
)
|
|
(1,417
|
)
|
||||
Net income available to common shares attributed to Vector Group Ltd.
|
$
|
25,310
|
|
|
$
|
23,231
|
|
|
$
|
19,600
|
|
|
$
|
41,936
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Weighted-average number of shares issuable upon
conversion of debt
|
26,140,250
|
|
|
26,140,251
|
|
|
26,140,250
|
|
|
26,140,251
|
|
||||
Weighted-average conversion price
|
$
|
18.70
|
|
|
$
|
18.70
|
|
|
$
|
18.70
|
|
|
$
|
18.70
|
|
(e)
|
Fair Value of Derivatives Embedded within Convertible Debt
:
|
(f)
|
Investments in Real Estate Ventures:
|
(g)
|
Other, Net
:
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Interest and dividend income
|
$
|
1,625
|
|
|
$
|
1,452
|
|
|
$
|
3,370
|
|
|
$
|
2,776
|
|
Gain on long-term investment
|
197
|
|
|
—
|
|
|
162
|
|
|
—
|
|
||||
Impairment of long-term investments
|
(525
|
)
|
|
(921
|
)
|
|
(525
|
)
|
|
(1,203
|
)
|
||||
Other income (expense)
|
41
|
|
|
50
|
|
|
(10
|
)
|
|
55
|
|
||||
Other, net
|
$
|
1,338
|
|
|
$
|
581
|
|
|
$
|
2,997
|
|
|
$
|
1,628
|
|
(h)
|
Other Current Liabilities
:
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Accounts payable
|
$
|
9,453
|
|
|
$
|
10,573
|
|
Accrued promotional expenses
|
19,857
|
|
|
23,763
|
|
||
Accrued excise and payroll taxes payable, net
|
22,809
|
|
|
10,044
|
|
||
Accrued interest
|
33,130
|
|
|
35,449
|
|
||
Commissions payable
|
14,269
|
|
|
6,164
|
|
||
Accrued salary and benefits
|
20,857
|
|
|
26,958
|
|
||
Other current liabilities
|
25,450
|
|
|
22,901
|
|
||
Total other current liabilities
|
$
|
145,825
|
|
|
$
|
135,852
|
|
(i)
|
Goodwill and Other Intangible Assets, Net
:
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Goodwill
|
|
$
|
70,815
|
|
|
$
|
70,815
|
|
|
|
|
|
|
||||
Indefinite life intangibles:
|
|
|
|
|
||||
Intangible asset associated with benefit under the MSA
|
|
107,511
|
|
|
107,511
|
|
||
Trademark - Douglas Elliman
|
|
80,000
|
|
|
80,000
|
|
||
|
|
|
|
|
||||
Intangibles with a finite life, net
|
|
2,863
|
|
|
3,592
|
|
||
|
|
|
|
|
||||
Total goodwill and other intangible assets, net
|
|
$
|
261,189
|
|
|
$
|
261,918
|
|
(j)
|
Subsequent Event
:
|
(k)
|
New Accounting Pronouncements
:
|
2
.
|
INVENTORIES
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Leaf tobacco
|
$
|
40,378
|
|
|
$
|
46,253
|
|
Other raw materials
|
3,438
|
|
|
3,733
|
|
||
Work-in-process
|
390
|
|
|
633
|
|
||
Finished goods
|
69,010
|
|
|
65,052
|
|
||
Inventories at current cost
|
113,216
|
|
|
115,671
|
|
||
LIFO adjustments
|
(25,237
|
)
|
|
(25,837
|
)
|
||
|
$
|
87,979
|
|
|
$
|
89,834
|
|
3
.
|
INVESTMENT SECURITIES AVAILABLE FOR SALE
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Marketable equity securities
|
$
|
35,425
|
|
|
$
|
12,427
|
|
|
$
|
(55
|
)
|
|
$
|
47,797
|
|
Mutual funds invested in fixed income securities
|
20,734
|
|
|
141
|
|
|
—
|
|
|
20,875
|
|
||||
Marketable debt securities
|
77,201
|
|
|
350
|
|
|
—
|
|
|
77,551
|
|
||||
Total investment securities available for sale
|
$
|
133,360
|
|
|
$
|
12,918
|
|
|
$
|
(55
|
)
|
|
$
|
146,223
|
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Marketable equity securities
|
$
|
34,956
|
|
|
$
|
16,141
|
|
|
$
|
(254
|
)
|
|
$
|
50,843
|
|
Mutual funds invested in fixed income securities
|
20,507
|
|
|
81
|
|
|
(6
|
)
|
|
20,582
|
|
||||
Marketable debt securities
|
85,297
|
|
|
181
|
|
|
—
|
|
|
85,478
|
|
||||
Total investment securities available for sale
|
$
|
140,760
|
|
|
$
|
16,403
|
|
|
$
|
(260
|
)
|
|
$
|
156,903
|
|
Investment Type:
|
Market Value
|
|
Under 1 Year
|
|
1 Year up to 5 Years
|
|
More than 5 Years
|
||||||||
U.S. Government securities
|
$
|
28,527
|
|
|
$
|
—
|
|
|
$
|
28,527
|
|
|
$
|
—
|
|
Corporate securities
|
40,128
|
|
|
7,766
|
|
|
32,362
|
|
|
—
|
|
||||
U.S. mortgage-backed securities
|
5,648
|
|
|
—
|
|
|
26
|
|
|
5,622
|
|
||||
Commercial mortgage-backed securities
|
440
|
|
|
—
|
|
|
—
|
|
|
440
|
|
||||
Index-linked U.S. bonds
|
2,307
|
|
|
—
|
|
|
2,307
|
|
|
—
|
|
||||
Foreign fixed-income securities
|
501
|
|
|
—
|
|
|
501
|
|
|
—
|
|
||||
Total marketable debt securities by maturity dates
|
$
|
77,551
|
|
|
$
|
7,766
|
|
|
$
|
63,723
|
|
|
$
|
6,062
|
|
|
In loss position for
|
|
|
|
|
||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
|
|
|
||||||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
|
Total Fair Value
|
|
Total Unrealized Losses
|
||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Marketable equity securities
|
$
|
5,945
|
|
|
$
|
(55
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,945
|
|
|
$
|
(55
|
)
|
|
$
|
5,945
|
|
|
$
|
(55
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,945
|
|
|
$
|
(55
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Marketable equity securities
|
$
|
5,746
|
|
|
$
|
(254
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,746
|
|
|
$
|
(254
|
)
|
Mutual funds invested in fixed income securities
|
10,253
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
10,253
|
|
|
(6
|
)
|
||||||
|
$
|
15,999
|
|
|
$
|
(260
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,999
|
|
|
$
|
(260
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Gross realized gains on sales
|
$
|
90
|
|
|
$
|
206
|
|
|
$
|
295
|
|
|
$
|
955
|
|
Gross realized losses on sales
|
(53
|
)
|
|
(67
|
)
|
|
(108
|
)
|
|
(249
|
)
|
||||
Gains on sale of investment securities available for sale
|
$
|
37
|
|
|
$
|
139
|
|
|
$
|
187
|
|
|
$
|
706
|
|
|
|
|
|
|
|
|
|
||||||||
Gross realized losses on other-than-temporary impairments
|
$
|
(87
|
)
|
|
$
|
(49
|
)
|
|
$
|
(126
|
)
|
|
$
|
(4,862
|
)
|
|
|
|
|
|
|
|
|
4
.
|
LONG-TERM INVESTMENTS
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Investments accounted at cost
|
$
|
60,450
|
|
|
$
|
35,476
|
|
Investments accounted for under the equity method
|
14,721
|
|
|
17,721
|
|
||
|
$
|
75,171
|
|
|
$
|
53,197
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
||||||||
|
Value
|
|
Value
|
|
Value
|
|
Value
|
||||||||
Investment partnerships
|
$
|
60,450
|
|
|
$
|
68,857
|
|
|
$
|
34,975
|
|
|
$
|
40,569
|
|
Real estate partnership
|
—
|
|
|
—
|
|
|
501
|
|
|
494
|
|
||||
|
$
|
60,450
|
|
|
$
|
68,857
|
|
|
$
|
35,476
|
|
|
$
|
41,063
|
|
|
June 30,
2017 |
|
December 31, 2016
|
||||
Indian Creek Investors LP ("Indian Creek")
|
$
|
3,209
|
|
|
$
|
5,248
|
|
Boyar Value Fund ("Boyar")
|
8,328
|
|
|
7,816
|
|
||
Ladenburg Thalmann Financial Services Inc. ("LTS")
|
3,184
|
|
|
4,657
|
|
||
Castle Brands, Inc. ("Castle")
|
—
|
|
|
—
|
|
||
|
$
|
14,721
|
|
|
$
|
17,721
|
|
5
.
|
NEW VALLEY LLC
|
|
Range of Ownership
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Condominium and Mixed Use Development:
|
|
|
|
|
|
||||
New York City SMSA
|
3.1% - 49.5%
|
|
$
|
128,168
|
|
|
$
|
131,770
|
|
All other U.S. areas
|
3.0% - 48.5%
|
|
26,615
|
|
|
40,950
|
|
||
|
|
|
154,783
|
|
|
172,720
|
|
||
Apartment Buildings:
|
|
|
|
|
|
||||
All other U.S. areas
|
7.6% - 16.3%
|
|
7,458
|
|
|
8,287
|
|
||
|
|
|
7,458
|
|
|
8,287
|
|
||
Hotels:
|
|
|
|
|
|
||||
New York City SMSA
|
5.2%
|
|
22,226
|
|
|
21,895
|
|
||
International
|
49.0%
|
|
2,501
|
|
|
3,037
|
|
||
|
|
|
24,727
|
|
|
24,932
|
|
||
Commercial:
|
|
|
|
|
|
||||
New York City SMSA
|
49.0%
|
|
2,820
|
|
|
3,290
|
|
||
All other U.S. areas
|
2.1%
|
|
9,844
|
|
|
10,000
|
|
||
|
|
|
12,664
|
|
|
13,290
|
|
||
|
|
|
|
|
|
||||
Other
|
50.0%
|
|
1,724
|
|
|
2,029
|
|
||
Investments in real estate ventures
|
|
|
$
|
201,356
|
|
|
$
|
221,258
|
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Condominium and Mixed Use Development:
|
|
|
|
||||
New York City SMSA
|
$
|
675
|
|
|
$
|
1,259
|
|
All other U.S. areas
|
6,242
|
|
|
7,542
|
|
||
|
6,917
|
|
|
8,801
|
|
||
Hotels:
|
|
|
|
||||
New York City SMSA
|
1,537
|
|
|
2,515
|
|
||
International
|
—
|
|
|
490
|
|
||
|
1,537
|
|
|
3,005
|
|
||
|
|
|
|
||||
Total contributions
|
$
|
8,454
|
|
|
$
|
11,806
|
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Condominium and Mixed Use Development:
|
|
|
|
||||
New York City SMSA
|
$
|
31,280
|
|
|
$
|
9,940
|
|
All other U.S. areas
|
17,949
|
|
|
10,045
|
|
||
|
49,229
|
|
|
19,985
|
|
||
Apartment Buildings:
|
|
|
|
||||
All other U.S. areas
|
182
|
|
|
8,707
|
|
||
|
182
|
|
|
8,707
|
|
||
Hotels:
|
|
|
|
||||
International
|
239
|
|
|
—
|
|
||
|
239
|
|
|
—
|
|
||
Commercial:
|
|
|
|
||||
New York City SMSA
|
101
|
|
|
235
|
|
||
All other U.S. areas
|
92
|
|
|
—
|
|
||
|
193
|
|
|
235
|
|
||
|
|
|
|
||||
Other
|
1,150
|
|
|
1,049
|
|
||
Total distributions
|
$
|
50,993
|
|
|
$
|
29,976
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Condominium and Mixed Use Development:
|
|
|
|
|
|
|
|
||||||||
New York City SMSA
|
$
|
17,116
|
|
|
$
|
3,279
|
|
|
$
|
29,296
|
|
|
$
|
2,610
|
|
All other U.S. areas
|
(863
|
)
|
|
(317
|
)
|
|
(1,155
|
)
|
|
(831
|
)
|
||||
|
16,253
|
|
|
2,962
|
|
|
28,141
|
|
|
1,779
|
|
||||
Apartment Buildings:
|
|
|
|
|
|
|
|
||||||||
All other U.S. areas
|
(724
|
)
|
|
1,630
|
|
|
(647
|
)
|
|
2,146
|
|
||||
|
(724
|
)
|
|
1,630
|
|
|
(647
|
)
|
|
2,146
|
|
||||
Hotels:
|
|
|
|
|
|
|
|
||||||||
New York City SMSA
|
(519
|
)
|
|
(494
|
)
|
|
(1,206
|
)
|
|
(1,074
|
)
|
||||
International
|
254
|
|
|
305
|
|
|
(296
|
)
|
|
230
|
|
||||
|
(265
|
)
|
|
(189
|
)
|
|
(1,502
|
)
|
|
(844
|
)
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
New York City SMSA
|
(124
|
)
|
|
(1,744
|
)
|
|
(369
|
)
|
|
(1,532
|
)
|
||||
All other U.S. areas
|
(64
|
)
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
||||
|
(188
|
)
|
|
(1,744
|
)
|
|
(433
|
)
|
|
(1,532
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Other
|
215
|
|
|
154
|
|
|
845
|
|
|
757
|
|
||||
Equity in earnings from real estate ventures
|
$
|
15,291
|
|
|
$
|
2,813
|
|
|
$
|
26,404
|
|
|
$
|
2,306
|
|
|
June 30, 2017
|
||
Condominium and Mixed Use Development:
|
|
||
New York City SMSA
|
$
|
129,745
|
|
All other U.S. areas
|
32,377
|
|
|
|
162,122
|
|
|
Apartment Buildings:
|
|
||
All other U.S. areas
|
7,458
|
|
|
|
7,458
|
|
|
Hotels:
|
|
||
New York City SMSA
|
22,226
|
|
|
International
|
2,501
|
|
|
|
24,727
|
|
|
Commercial:
|
|
||
New York City SMSA
|
2,820
|
|
|
All other U.S. areas
|
9,844
|
|
|
|
12,664
|
|
|
Other
|
1,724
|
|
|
Total maximum exposure to loss
|
$
|
208,695
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Income Statement
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
102,039
|
|
|
$
|
196,658
|
|
|
$
|
162,364
|
|
|
$
|
258,584
|
|
Cost of sales
|
49,037
|
|
|
122,911
|
|
|
101,879
|
|
|
155,714
|
|
||||
Other expenses
|
1,512
|
|
|
1,151
|
|
|
3,093
|
|
|
1,436
|
|
||||
Income from continuing operations
|
$
|
51,490
|
|
|
$
|
72,596
|
|
|
$
|
57,392
|
|
|
$
|
101,434
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Escena, net
|
$
|
10,622
|
|
|
$
|
10,792
|
|
Sagaponack
|
13,053
|
|
|
12,848
|
|
||
Investments in real estate, net
|
$
|
23,675
|
|
|
$
|
23,640
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Land and land improvements
|
$
|
8,907
|
|
|
$
|
8,907
|
|
Building and building improvements
|
1,879
|
|
|
1,878
|
|
||
Other
|
2,058
|
|
|
2,028
|
|
||
|
12,844
|
|
|
12,813
|
|
||
Less accumulated depreciation
|
(2,222
|
)
|
|
(2,021
|
)
|
||
|
$
|
10,622
|
|
|
$
|
10,792
|
|
6
.
|
NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Vector:
|
|
|
|
||||
7.75% Senior Secured Notes due 2021, including premium of $13,954
|
$
|
—
|
|
|
$
|
848,954
|
|
6.125% Senior Secured Notes due 2025
|
850,000
|
|
|
—
|
|
||
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $91,396 and $108,480*
|
138,604
|
|
|
121,520
|
|
||
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $62,852 and $71,247*
|
195,898
|
|
|
187,503
|
|
||
Liggett:
|
|
|
|
||||
Revolving credit facility
|
18,810
|
|
|
37,163
|
|
||
Term loan under credit facility
|
2,852
|
|
|
2,999
|
|
||
Equipment loans
|
3,474
|
|
|
4,519
|
|
||
Other
|
512
|
|
|
591
|
|
||
Notes payable, long-term debt and other obligations
|
1,210,150
|
|
|
1,203,249
|
|
||
Less:
|
|
|
|
||||
Debt issuance costs
|
(30,332
|
)
|
|
(30,798
|
)
|
||
Total notes payable, long-term debt and other obligations
|
1,179,818
|
|
|
1,172,451
|
|
||
Less:
|
|
|
|
||||
Current maturities
|
(20,941
|
)
|
|
(39,508
|
)
|
||
Amount due after one year
|
$
|
1,158,877
|
|
|
$
|
1,132,943
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
|
Conversion Price
|
|
Shares per $1,000
|
|
Conversion Price
|
|
Shares per $1,000
|
||||||
|
|
|
|
|
|
|
|
||||||
7.5% Variable Interest Senior Convertible Notes due 2019
|
$
|
15.22
|
|
|
65.7030
|
|
|
$
|
15.22
|
|
|
65.7030
|
|
5.5% Variable Interest Senior Convertible Debentures due 2020
|
$
|
23.46
|
|
|
42.6185
|
|
|
$
|
23.46
|
|
|
42.6185
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Amortization of debt discount, net
|
$
|
13,426
|
|
|
$
|
8,653
|
|
|
$
|
25,262
|
|
|
$
|
16,609
|
|
Amortization of debt issuance costs
|
2,233
|
|
|
1,401
|
|
|
4,233
|
|
|
2,569
|
|
||||
Loss on extinguishment of 7.75% Senior Secured Notes
|
—
|
|
|
—
|
|
|
1,754
|
|
(1)
|
—
|
|
||||
|
$
|
15,659
|
|
|
$
|
10,054
|
|
|
$
|
31,249
|
|
|
$
|
19,178
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
||||||||
|
Value
|
|
Value
|
|
Value
|
|
Value
|
||||||||
Notes payable and long-term debt
|
$
|
1,210,150
|
|
(1)
|
$
|
1,543,292
|
|
|
$
|
1,203,249
|
|
(1)
|
$
|
1,570,732
|
|
|
|
|
|
|
|
|
|
7
.
|
CONTINGENCIES
|
State
|
|
Number
of Cases
|
Florida
|
|
8
|
New York
|
|
5
|
Louisiana
|
|
2
|
West Virginia
|
|
2
|
Missouri
|
|
1
|
Ohio
|
|
1
|
Date
|
|
Case Name
|
|
County
|
|
Liggett Compensatory
Damages (as adjusted) (1) |
|
Liggett Punitive Damages
|
|
Status
(2)
|
June 2002
|
|
Lukacs v. R.J. Reynolds
|
|
Miami-Dade
|
|
$12,418
|
|
$—
|
|
Liggett satisfied the judgment and the case is concluded.
|
August 2009
|
|
Campbell v. R.J. Reynolds
|
|
Escambia
|
|
156
|
|
—
|
|
Liggett satisfied the judgment and the case is concluded.
|
March 2010
|
|
Douglas v. R.J. Reynolds
|
|
Hillsborough
|
|
1,350
|
|
—
|
|
Liggett satisfied the judgment and the case is concluded.
|
April 2010
|
|
Clay v. R.J. Reynolds
|
|
Escambia
|
|
349
|
|
1,000
|
|
Liggett satisfied the judgment and the case is concluded.
|
April 2010
|
|
Putney v. R.J. Reynolds
|
|
Broward
|
|
17
|
|
—
|
|
On June 12, 2013, the Fourth District Court of Appeal reversed and remanded the case for further proceedings regarding the amount of the award. Both sides sought discretionary review from the Florida Supreme Court. In February 2016, the Florida Supreme Court reinstated the jury's verdict. The defendants moved for clarification of that order. The court clarified that it reversed the district court's decision regarding the statute of repose only, leaving the remaining portions of the decision intact, which, among other things, reversed an approximately $3,000 compensatory award against Liggett. The case was remanded to the trial court for proceedings consistent with those portions of the district court's decision that were not reversed. On May 23, 2017, the court granted Defendant's Motion for Remittitur and reduced the non-economic damages to $225. Plaintiff rejected the remittitur and a new trial will be conducted on non-economic damages.
|
April 2011
|
|
Tullo v. R.J. Reynolds
|
|
Palm Beach
|
|
225
|
|
—
|
|
Liggett satisfied the judgment and the case is concluded.
|
January 2012
|
|
Ward v. R.J. Reynolds
|
|
Escambia
|
|
1
|
|
—
|
|
Liggett satisfied the merits judgment. Subsequently, the trial court entered a joint and several final judgment on attorneys' fees and costs for $981 and defendants appealed that judgment. A decision is pending.
|
May 2012
|
|
Calloway v. R.J. Reynolds
|
|
Broward
|
|
—
|
|
—
|
|
A joint and several judgment for $16,100 was entered against R.J. Reynolds, Philip Morris, Lorillard and Liggett. On January 6, 2016, the Fourth District Court of Appeal reversed in part, including the $7,600 punitive damages award against Liggett, and remanded the case to the trial court for a new trial on certain issues. Both sides moved for rehearing and in September 2016, the Fourth District Court of Appeal reversed the judgment in its entirety and remanded the case for a new trial. As a result, the $1,530 compensatory award against Liggett was also reversed. The plaintiff filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. The court declined to accept jurisdiction. Plaintiff filed a petition for
writ of certiorari
to the United States Supreme Court. This case was settled in December 2016 as part of
Engle
Progeny Settlement II.
|
December 2012
|
|
Buchanan v. R.J. Reynolds
|
|
Leon
|
|
2,750
|
|
—
|
|
Liggett satisfied the judgment and the case is concluded.
|
May 2013
|
|
D. Cohen v. R.J. Reynolds
|
|
Palm Beach
|
|
—
|
|
—
|
|
This case was settled in December 2016 as part of
Engle
Progeny Settlement II.
|
August 2013
|
|
Rizzuto v. R.J. Reynolds
|
|
Hernando
|
|
3,479
|
|
—
|
|
Liggett settled its portion of the judgment for $1,500 and the case is concluded as to Liggett.
|
August 2014
|
|
Irimi v. R.J. Reynolds
|
|
Broward
|
|
—
|
|
—
|
|
This case was settled in December 2016 as part of
Engle
Progeny Settlement II.
|
October 2014
|
|
Lambert v. R.J. Reynolds
|
|
Pinellas
|
|
3,600
|
|
9,500
|
|
Liggett satisfied the judgment and the case is concluded.
|
November 2014
|
|
Boatright v. R.J. Reynolds
|
|
Polk
|
|
—
|
|
300
|
|
In November 2014, the jury awarded compensatory damages in the amount of $15,000 with 15% fault apportioned to plaintiff and 85% to Philip Morris. A joint and several judgment was entered in the amount of $12,750 on the compensatory damages. Judgment was also entered against Liggett for $300 in punitive damages. Defendants appealed and plaintiff cross-appealed. The Second District Court of Appeal reversed the trial court's decision to reduce the judgment by plaintiff's assessed fault and affirmed as to all other issues on that appeal. In a separate appeal, the Second District Court of Appeal also reversed the trial court's ruling that plaintiff's proposals for settlement were invalid and remanded for determination of attorney's fees. Defendants filed notices to invoke the discretionary jurisdiction of the Florida Supreme Court on both appeals.
|
|
|
|
|
|
|
|
|
|
|
Any potential liability as a result of the pending appeals is included in the amount Liggett will pay under
Engle
Progeny Settlement II.
|
June 2015
|
|
Caprio v. R.J. Reynolds
|
|
Broward
|
|
—
|
|
—
|
|
This case was settled in December 2016 as part of
Engle
Progeny Settlement II.
|
March 2017
|
|
Santoro v. R.J. Reynolds
|
|
Broward
|
|
160
|
|
15
|
|
In April 2017, a joint and several judgment was entered against R.J. Reynolds, Philip Morris and Liggett for $1,027, for compensatory damages. Judgment was also entered against Liggett for $15 in punitive damages. Post trial motions are scheduled for hearing on August 2, 2017.
|
Total Damages Awarded:
|
24,505
|
|
10,815
|
|
|
|||||
Amounts accrued, paid or compromised:
|
(24,328)
|
|
(10,800)
|
|
|
|||||
Damages remaining on Appeal:
|
$177
|
|
$15
|
|
|
|||||
(1) Compensatory damages are adjusted to reflect the jury's allocation of comparative fault and only include Liggett's jury allocated share, regardless of whether a judgment was joint and several. The amounts listed above do not include attorneys' fees or statutory interest.
|
||||||||||
(2) See Exhibit 99.1 for a more complete description of the cases currently on appeal.
|
•
|
all claims of the Settling States and their respective political subdivisions and other recipients of state health care funds, relating to: (i) past conduct arising out of the use, sale, distribution, manufacture, development, advertising and marketing of tobacco products; (ii) the health effects of, the exposure to, or research, statements or warnings about, tobacco products; and
|
•
|
all monetary claims of the Settling States and their respective subdivisions and other recipients of state health care funds relating to future conduct arising out of the use of, or exposure to, tobacco products that have been manufactured in the ordinary course of business.
|
|
Current Liabilities
|
|
Non-Current Liabilities
|
||||||||||||||||||||
|
Payments due under Master Settlement Agreement
|
|
Litigation Accruals
|
|
Total
|
|
Payments due under Master Settlement Agreement
|
|
Litigation Accruals
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance as of January 1, 2017
|
$
|
16,192
|
|
|
$
|
3,659
|
|
|
$
|
19,851
|
|
|
$
|
22,257
|
|
|
$
|
27,513
|
|
|
$
|
49,770
|
|
Expenses
|
68,099
|
|
|
1,712
|
|
|
69,811
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
NPM Settlement adjustment
|
33
|
|
|
—
|
|
|
33
|
|
|
(928
|
)
|
|
—
|
|
|
(928
|
)
|
||||||
Change in MSA obligations capitalized as inventory
|
324
|
|
|
—
|
|
|
324
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Payments
|
(14,296
|
)
|
|
(5,368
|
)
|
|
(19,664
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Reclassification to/(from) non-current liabilities
|
(2,313
|
)
|
|
5,217
|
|
|
2,904
|
|
|
2,313
|
|
|
(5,217
|
)
|
|
(2,904
|
)
|
||||||
Interest on withholding
|
—
|
|
|
151
|
|
|
151
|
|
|
—
|
|
|
1,278
|
|
|
1,278
|
|
||||||
Balance as of June 30, 2017
|
$
|
68,039
|
|
|
$
|
5,371
|
|
|
$
|
73,410
|
|
|
$
|
23,642
|
|
|
$
|
23,574
|
|
|
$
|
47,216
|
|
|
Current Liabilities
|
|
Non-Current Liabilities
|
||||||||||||||||||||
|
Payments due under Master Settlement Agreement
|
|
Litigation Accruals
|
|
Total
|
|
Payments due under Master Settlement Agreement
|
|
Litigation Accruals
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance as of January 1, 2016
|
$
|
29,241
|
|
|
$
|
22,904
|
|
|
$
|
52,145
|
|
|
$
|
20,094
|
|
|
$
|
24,718
|
|
|
$
|
44,812
|
|
Expenses
|
42,637
|
|
|
2,583
|
|
|
45,220
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Change in MSA obligations capitalized as inventory
|
69
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Payments
|
(12,847
|
)
|
|
(25,545
|
)
|
|
(38,392
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Reclassification to/(from) non-current liabilities
|
(2,163
|
)
|
|
3,252
|
|
|
1,089
|
|
|
2,163
|
|
|
(3,252
|
)
|
|
(1,089
|
)
|
||||||
Interest on withholding
|
35
|
|
|
320
|
|
|
355
|
|
|
—
|
|
|
1,153
|
|
|
1,153
|
|
||||||
Balance as of June 30, 2016
|
$
|
56,972
|
|
|
$
|
3,514
|
|
|
$
|
60,486
|
|
|
$
|
22,257
|
|
|
$
|
22,619
|
|
|
$
|
44,876
|
|
8
.
|
EMPLOYEE BENEFIT PLANS
|
|
Pension Benefits
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
Service cost — benefits earned during the period
|
$
|
141
|
|
|
$
|
137
|
|
|
$
|
282
|
|
|
$
|
274
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
2
|
|
Interest cost on projected benefit obligation
|
1,266
|
|
|
1,355
|
|
|
2,530
|
|
|
2,710
|
|
|
92
|
|
|
97
|
|
|
184
|
|
|
194
|
|
||||||||
Expected return on assets
|
(1,356
|
)
|
|
(1,519
|
)
|
|
(2,712
|
)
|
|
(3,038
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Amortization of net loss (gain)
|
502
|
|
|
464
|
|
|
1,004
|
|
|
928
|
|
|
(13
|
)
|
|
(19
|
)
|
|
(27
|
)
|
|
(38
|
)
|
||||||||
Net expense
|
$
|
553
|
|
|
$
|
437
|
|
|
$
|
1,104
|
|
|
$
|
874
|
|
|
$
|
80
|
|
|
$
|
79
|
|
|
$
|
160
|
|
|
$
|
158
|
|
9
.
|
INCOME TAXES
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Income before provision for income taxes
|
$
|
50,373
|
|
|
$
|
46,340
|
|
|
$
|
43,366
|
|
|
$
|
82,096
|
|
Income tax expense using estimated annual effective income tax rate
|
19,152
|
|
|
18,793
|
|
|
16,457
|
|
|
33,317
|
|
||||
Changes in effective tax rates
|
(56
|
)
|
|
210
|
|
|
—
|
|
|
—
|
|
||||
Impact of discrete items, net
|
(269
|
)
|
|
—
|
|
|
(412
|
)
|
|
49
|
|
||||
Income tax expense
|
$
|
18,827
|
|
|
$
|
19,003
|
|
|
$
|
16,045
|
|
|
$
|
33,366
|
|
10
.
|
INVESTMENTS AND FAIR VALUE MEASUREMENTS
|
|
|
Fair Value Measurements as of June 30, 2017
|
|
|
||||||||||||||||
Description
|
|
Total
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs (Level 2) |
|
Significant Unobservable Inputs (Level 3) |
|
Total Gains (Losses)
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market funds
(1)
|
|
$
|
247,739
|
|
|
$
|
247,739
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial paper
(1)
|
|
50,470
|
|
|
—
|
|
|
50,470
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Certificates of deposit
(2)
|
|
2,749
|
|
|
—
|
|
|
2,749
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bonds
(2)
|
|
4,240
|
|
|
4,240
|
|
|
—
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
47,797
|
|
|
47,797
|
|
|
—
|
|
|
—
|
|
|
|
||||||
Mutual funds invested in fixed income securities
|
|
20,875
|
|
|
20,875
|
|
|
—
|
|
|
—
|
|
|
|
||||||
Fixed income securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government securities
|
|
28,527
|
|
|
—
|
|
|
28,527
|
|
|
—
|
|
|
|
||||||
Corporate securities
|
|
40,128
|
|
|
—
|
|
|
40,128
|
|
|
—
|
|
|
|
||||||
U.S. government and federal agency
|
|
5,648
|
|
|
—
|
|
|
5,648
|
|
|
—
|
|
|
|
||||||
Commercial mortgage-backed securities
|
|
440
|
|
|
—
|
|
|
440
|
|
|
—
|
|
|
|
||||||
Index-linked U.S. bonds
|
|
2,307
|
|
|
—
|
|
|
2,307
|
|
|
—
|
|
|
|
||||||
Foreign fixed-income securities
|
|
501
|
|
|
—
|
|
|
501
|
|
|
—
|
|
|
|
||||||
Total fixed income securities
|
|
77,551
|
|
|
—
|
|
|
77,551
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total investment securities available for sale
|
|
146,223
|
|
|
68,672
|
|
|
77,551
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
$
|
451,421
|
|
|
$
|
320,651
|
|
|
$
|
130,770
|
|
|
$
|
—
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value of derivatives embedded within convertible debt
|
|
$
|
95,627
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
95,627
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonrecurring fair value measurements
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term investments
(3)
|
|
$
|
4,475
|
|
|
|
|
|
|
$
|
4,475
|
|
|
$
|
(525
|
)
|
||||
|
|
$
|
4,475
|
|
|
|
|
|
|
$
|
4,475
|
|
|
$
|
(525
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amounts included in cash and cash equivalents on the condensed consolidated balance sheet.
|
(2)
|
Amounts included in current restricted assets and restricted assets on the condensed consolidated balance sheet.
|
(3)
|
Long-term investments with a carrying amount of
$5,000
were written down to their fair value of
$4,475
, resulting in an impairment charge of
$525
, which was included in earnings.
|
|
|
Fair Value Measurements as of December 31, 2016
|
|
|
||||||||||||||||
Description
|
|
Total
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs (Level 2) |
|
Significant Unobservable Inputs (Level 3) |
|
Total Gains (Losses)
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market funds
(1)
|
|
$
|
248,552
|
|
|
$
|
248,552
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial paper
(1)
|
|
41,247
|
|
|
—
|
|
|
41,247
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Certificates of deposit
(2)
|
|
2,982
|
|
|
—
|
|
|
2,982
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bonds
(2)
|
|
4,240
|
|
|
4,240
|
|
|
—
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
50,843
|
|
|
50,843
|
|
|
—
|
|
|
—
|
|
|
|
||||||
Mutual funds invested in fixed income securities
|
|
20,582
|
|
|
20,582
|
|
|
—
|
|
|
—
|
|
|
|
||||||
Fixed income securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government securities
|
|
30,642
|
|
|
—
|
|
|
30,642
|
|
|
—
|
|
|
|
||||||
Corporate securities
|
|
36,687
|
|
|
—
|
|
|
36,687
|
|
|
—
|
|
|
|
||||||
U.S. government and federal agency
|
|
6,500
|
|
|
—
|
|
|
6,500
|
|
|
—
|
|
|
|
||||||
Commercial mortgage-backed securities
|
|
1,398
|
|
|
—
|
|
|
1,398
|
|
|
—
|
|
|
|
||||||
Commercial paper
|
|
8,980
|
|
|
—
|
|
|
8,980
|
|
|
—
|
|
|
|
||||||
Index-linked U.S. bonds
|
|
770
|
|
|
—
|
|
|
770
|
|
|
—
|
|
|
|
||||||
Foreign fixed income securities
|
|
501
|
|
|
—
|
|
|
501
|
|
|
—
|
|
|
|
||||||
Total fixed income securities
|
|
85,478
|
|
|
—
|
|
|
85,478
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total investment securities available for sale
|
|
156,903
|
|
|
71,425
|
|
|
85,478
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
$
|
453,924
|
|
|
$
|
324,217
|
|
|
$
|
129,707
|
|
|
$
|
—
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value of derivatives embedded within convertible debt
|
|
$
|
112,332
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
112,332
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonrecurring fair value measurements
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term investments
(3)
|
|
$
|
6,396
|
|
|
|
|
|
|
$
|
6,396
|
|
|
$
|
(1,203
|
)
|
||||
|
|
$
|
6,396
|
|
|
|
|
|
|
$
|
6,396
|
|
|
$
|
(1,203
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amounts included in cash and cash equivalents on the condensed consolidated balance sheet
|
(2)
|
Amounts included in current restricted assets and restricted assets on the condensed consolidated balance sheet.
|
(3)
|
Long-term investments with a carrying amount of
$7,599
were written down to their fair value of
$6,396
, resulting in an impairment charge of
$1,203
, which was included in earnings.
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||
|
|
Fair Value at
|
|
|
|
|
|
|
||||
|
|
June 30,
2017 |
|
Valuation Technique
|
|
Unobservable Input
|
|
Range (Actual)
|
||||
|
|
|
|
|
|
|
|
|
||||
Fair value of derivatives embedded within convertible debt
|
|
$
|
95,627
|
|
|
Discounted cash flow
|
|
Assumed annual stock dividend
|
|
5
|
%
|
|
|
|
|
|
|
|
Assumed annual cash dividend
|
|
$
|
1.60
|
|
||
|
|
|
|
|
|
Stock price
|
|
$
|
21.32
|
|
||
|
|
|
|
|
|
Convertible trading price (as a percentage of par value)
|
|
115.25
|
%
|
|||
|
|
|
|
|
|
Volatility
|
|
18.72
|
%
|
|||
|
|
|
|
|
|
Risk-free rate
|
|
Term structure of US Treasury Securities
|
||||
|
|
|
|
|
|
Implied credit spread
|
|
3.0% - 4.0% (3.5%)
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||
|
|
Fair Value at
|
|
|
|
|
|
|
||||
|
|
December 31,
2016 |
|
Valuation Technique
|
|
Unobservable Input
|
|
Range (Actual)
|
||||
|
|
|
|
|
|
|
|
|
||||
Fair value of derivatives embedded within convertible debt
|
|
$
|
112,332
|
|
|
Discounted cash flow
|
|
Assumed annual stock dividend
|
|
5
|
%
|
|
|
|
|
|
|
|
Assumed annual cash dividend
|
|
$
|
1.60
|
|
||
|
|
|
|
|
|
Stock price
|
|
$
|
22.74
|
|
||
|
|
|
|
|
|
Convertible trading price (as a percentage of par value)
|
|
114.69
|
%
|
|||
|
|
|
|
|
|
Volatility
|
|
19.47
|
%
|
|||
|
|
|
|
|
|
Risk-free rate
|
|
Term structure of US Treasury Securities
|
||||
|
|
|
|
|
|
Implied credit spread
|
|
4.5% - 5.5% (5.0%)
|
|
11
.
|
SEGMENT INFORMATION
|
|
|
|
|
|
Real
|
|
Corporate
|
|
|
||||||||||
|
Tobacco
|
|
E-Cigarettes
|
|
Estate
|
|
and Other
|
|
Total
|
||||||||||
Three months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
272,177
|
|
|
$
|
—
|
|
|
$
|
199,812
|
|
|
$
|
—
|
|
|
$
|
471,989
|
|
Operating income (loss)
|
64,407
|
|
(1)
|
(1
|
)
|
|
16,586
|
|
|
(7,182
|
)
|
|
73,810
|
|
|||||
Equity in earnings from real estate ventures
|
—
|
|
|
—
|
|
|
15,291
|
|
|
—
|
|
|
15,291
|
|
|||||
Depreciation and amortization
|
2,333
|
|
|
—
|
|
|
1,913
|
|
|
367
|
|
|
4,613
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
255,498
|
|
|
$
|
10
|
|
|
$
|
182,765
|
|
|
$
|
—
|
|
|
$
|
438,273
|
|
Operating income (loss)
|
66,016
|
|
|
(91
|
)
|
|
11,706
|
|
|
(6,911
|
)
|
|
70,720
|
|
|||||
Equity in earnings from real estate ventures
|
—
|
|
|
—
|
|
|
2,813
|
|
|
—
|
|
|
2,813
|
|
|||||
Depreciation and amortization
|
2,499
|
|
|
—
|
|
|
2,943
|
|
|
428
|
|
|
5,870
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Six months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
529,631
|
|
|
$
|
—
|
|
|
$
|
357,566
|
|
|
$
|
—
|
|
|
$
|
887,197
|
|
Operating income (loss)
|
124,177
|
|
(2)
|
(78
|
)
|
|
17,206
|
|
|
(14,564
|
)
|
|
126,741
|
|
|||||
Equity in earnings from real estate ventures
|
—
|
|
|
—
|
|
|
26,404
|
|
|
—
|
|
|
26,404
|
|
|||||
Depreciation and amortization
|
4,753
|
|
|
—
|
|
|
4,135
|
|
|
754
|
|
|
9,642
|
|
|||||
Capital expenditures
|
2,049
|
|
|
—
|
|
|
6,291
|
|
|
6
|
|
|
8,346
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Six months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
476,513
|
|
|
$
|
48
|
|
|
$
|
342,512
|
|
|
$
|
—
|
|
|
$
|
819,073
|
|
Operating income (loss)
|
127,499
|
|
(3)
|
(284
|
)
|
|
19,380
|
|
|
(13,716
|
)
|
|
132,879
|
|
|||||
Equity in earnings from real estate ventures
|
—
|
|
|
—
|
|
|
2,306
|
|
|
—
|
|
|
2,306
|
|
|||||
Depreciation and amortization
|
4,939
|
|
|
—
|
|
|
5,225
|
|
|
870
|
|
|
11,034
|
|
|||||
Capital expenditures
|
3,716
|
|
|
—
|
|
|
3,873
|
|
|
26
|
|
|
7,615
|
|
|||||
|
|
|
|
|
|
|
|
|
|
(1)
|
Operating income includes
$102
of litigation judgment expense.
|
(2)
|
Operating income includes
$895
of income from MSA Settlement, and
$1,687
of litigation judgment expense.
|
(3)
|
Operating income includes
$2,350
of litigation judgment expense and
$41
of restructuring expense.
|
|
|
|
June 30, 2017
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
248,165
|
|
|
$
|
49,500
|
|
|
$
|
112,744
|
|
|
$
|
—
|
|
|
$
|
410,409
|
|
Investment securities available for sale
|
113,653
|
|
|
32,570
|
|
|
—
|
|
|
—
|
|
|
146,223
|
|
|||||
Accounts receivable - trade, net
|
—
|
|
|
17,502
|
|
|
7,977
|
|
|
—
|
|
|
25,479
|
|
|||||
Intercompany receivables
|
19,897
|
|
|
—
|
|
|
—
|
|
|
(19,897
|
)
|
|
—
|
|
|||||
Inventories
|
—
|
|
|
87,979
|
|
|
—
|
|
|
—
|
|
|
87,979
|
|
|||||
Income taxes receivable, net
|
14,534
|
|
|
—
|
|
|
—
|
|
|
(6,356
|
)
|
|
8,178
|
|
|||||
Restricted assets
|
—
|
|
|
4,645
|
|
|
4,152
|
|
|
—
|
|
|
8,797
|
|
|||||
Other current assets
|
471
|
|
|
3,779
|
|
|
25,208
|
|
|
—
|
|
|
29,458
|
|
|||||
Total current assets
|
396,720
|
|
|
195,975
|
|
|
150,081
|
|
|
(26,253
|
)
|
|
716,523
|
|
|||||
Property, plant and equipment, net
|
787
|
|
|
45,251
|
|
|
34,956
|
|
|
—
|
|
|
80,994
|
|
|||||
Investments in real estate, net
|
—
|
|
|
—
|
|
|
23,675
|
|
|
—
|
|
|
23,675
|
|
|||||
Long-term investments
|
74,812
|
|
|
359
|
|
|
—
|
|
|
—
|
|
|
75,171
|
|
|||||
Investments in real estate ventures
|
—
|
|
|
—
|
|
|
201,356
|
|
|
—
|
|
|
201,356
|
|
|||||
Investments in consolidated subsidiaries
|
493,411
|
|
|
—
|
|
|
—
|
|
|
(493,411
|
)
|
|
—
|
|
|||||
Restricted assets
|
1,495
|
|
|
2,259
|
|
|
—
|
|
|
—
|
|
|
3,754
|
|
|||||
Goodwill and other intangible assets, net
|
—
|
|
|
107,511
|
|
|
153,678
|
|
|
—
|
|
|
261,189
|
|
|||||
Prepaid pension costs
|
—
|
|
|
22,882
|
|
|
—
|
|
|
—
|
|
|
22,882
|
|
|||||
Other assets
|
7,946
|
|
|
12,313
|
|
|
14,483
|
|
|
—
|
|
|
34,742
|
|
|||||
Total assets
|
$
|
975,171
|
|
|
$
|
386,550
|
|
|
$
|
578,229
|
|
|
$
|
(519,664
|
)
|
|
$
|
1,420,286
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of notes payable and long-term debt
|
$
|
—
|
|
|
$
|
20,760
|
|
|
$
|
181
|
|
|
$
|
—
|
|
|
$
|
20,941
|
|
Current portion of employee benefits
|
—
|
|
|
937
|
|
|
—
|
|
|
—
|
|
|
937
|
|
|||||
Intercompany payables
|
—
|
|
|
567
|
|
|
19,330
|
|
|
(19,897
|
)
|
|
—
|
|
|||||
Income taxes payable, net
|
—
|
|
|
5,250
|
|
|
1,106
|
|
|
(6,356
|
)
|
|
—
|
|
|||||
Litigation accruals and current payments due under the Master Settlement Agreement
|
—
|
|
|
73,410
|
|
|
—
|
|
|
—
|
|
|
73,410
|
|
|||||
Other current liabilities
|
44,896
|
|
|
57,230
|
|
|
43,699
|
|
|
—
|
|
|
145,825
|
|
|||||
Total current liabilities
|
44,896
|
|
|
158,154
|
|
|
64,316
|
|
|
(26,253
|
)
|
|
241,113
|
|
|||||
Notes payable, long-term debt and other obligations, less current portion
|
1,154,170
|
|
|
4,389
|
|
|
318
|
|
|
—
|
|
|
1,158,877
|
|
|||||
Fair value of derivatives embedded within convertible debt
|
95,627
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95,627
|
|
|||||
Non-current employee benefits
|
43,693
|
|
|
15,691
|
|
|
—
|
|
|
—
|
|
|
59,384
|
|
|||||
Deferred income taxes, net
|
3,526
|
|
|
37,501
|
|
|
44,149
|
|
|
—
|
|
|
85,176
|
|
|||||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement
|
1,112
|
|
|
47,260
|
|
|
16,258
|
|
|
—
|
|
|
64,630
|
|
|||||
Total liabilities
|
1,343,024
|
|
|
262,995
|
|
|
125,041
|
|
|
(26,253
|
)
|
|
1,704,807
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stockholders' (deficiency) equity attributed to Vector Group Ltd.
|
(367,853
|
)
|
|
123,555
|
|
|
369,856
|
|
|
(493,411
|
)
|
|
(367,853
|
)
|
|||||
Non-controlling interest
|
—
|
|
|
—
|
|
|
83,332
|
|
|
—
|
|
|
83,332
|
|
|||||
Total stockholders' (deficiency) equity
|
(367,853
|
)
|
|
123,555
|
|
|
453,188
|
|
|
(493,411
|
)
|
|
(284,521
|
)
|
|||||
Total liabilities and stockholders' deficiency
|
$
|
975,171
|
|
|
$
|
386,550
|
|
|
$
|
578,229
|
|
|
$
|
(519,664
|
)
|
|
$
|
1,420,286
|
|
|
|
|
December 31, 2016
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
279,815
|
|
|
$
|
14,798
|
|
|
$
|
98,917
|
|
|
$
|
—
|
|
|
$
|
393,530
|
|
Investment securities available for sale
|
121,016
|
|
|
35,887
|
|
|
—
|
|
|
—
|
|
|
156,903
|
|
|||||
Accounts receivable - trade, net
|
—
|
|
|
11,775
|
|
|
7,026
|
|
|
—
|
|
|
18,801
|
|
|||||
Intercompany receivables
|
22,789
|
|
|
—
|
|
|
—
|
|
|
(22,789
|
)
|
|
—
|
|
|||||
Inventories
|
—
|
|
|
89,834
|
|
|
—
|
|
|
—
|
|
|
89,834
|
|
|||||
Income taxes receivable, net
|
18,387
|
|
|
—
|
|
|
—
|
|
|
(2,277
|
)
|
|
16,110
|
|
|||||
Restricted assets
|
—
|
|
|
6,416
|
|
|
914
|
|
|
—
|
|
|
7,330
|
|
|||||
Other current assets
|
517
|
|
|
4,428
|
|
|
18,010
|
|
|
—
|
|
|
22,955
|
|
|||||
Total current assets
|
442,524
|
|
|
163,138
|
|
|
124,867
|
|
|
(25,066
|
)
|
|
705,463
|
|
|||||
Property, plant and equipment, net
|
1,134
|
|
|
48,314
|
|
|
31,000
|
|
|
—
|
|
|
80,448
|
|
|||||
Investments in real estate, net
|
—
|
|
|
—
|
|
|
23,640
|
|
|
—
|
|
|
23,640
|
|
|||||
Long-term investments
|
52,308
|
|
|
388
|
|
|
501
|
|
|
—
|
|
|
53,197
|
|
|||||
Investments in real estate ventures
|
—
|
|
|
—
|
|
|
221,258
|
|
|
—
|
|
|
221,258
|
|
|||||
Investments in consolidated subsidiaries
|
501,659
|
|
|
—
|
|
|
—
|
|
|
(501,659
|
)
|
|
—
|
|
|||||
Restricted assets
|
1,728
|
|
|
2,258
|
|
|
—
|
|
|
—
|
|
|
3,986
|
|
|||||
Goodwill and other intangible assets, net
|
—
|
|
|
107,511
|
|
|
154,407
|
|
|
—
|
|
|
261,918
|
|
|||||
Prepaid pension costs
|
—
|
|
|
22,273
|
|
|
—
|
|
|
—
|
|
|
22,273
|
|
|||||
Other assets
|
7,534
|
|
|
12,118
|
|
|
12,200
|
|
|
—
|
|
|
31,852
|
|
|||||
Total assets
|
$
|
1,006,887
|
|
|
$
|
356,000
|
|
|
$
|
567,873
|
|
|
$
|
(526,725
|
)
|
|
$
|
1,404,035
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of notes payable and long-term debt
|
$
|
—
|
|
|
$
|
39,333
|
|
|
$
|
175
|
|
|
$
|
—
|
|
|
$
|
39,508
|
|
Current portion of employee benefits
|
—
|
|
|
937
|
|
|
—
|
|
|
—
|
|
|
937
|
|
|||||
Intercompany payables
|
—
|
|
|
24
|
|
|
22,765
|
|
|
(22,789
|
)
|
|
—
|
|
|||||
Income taxes payable, net
|
—
|
|
|
1,089
|
|
|
1,188
|
|
|
(2,277
|
)
|
|
—
|
|
|||||
Litigation accruals and current payments due under the Master Settlement Agreement
|
—
|
|
|
19,851
|
|
|
—
|
|
|
—
|
|
|
19,851
|
|
|||||
Other current liabilities
|
47,968
|
|
|
49,492
|
|
|
38,392
|
|
|
—
|
|
|
135,852
|
|
|||||
Total current liabilities
|
47,968
|
|
|
110,726
|
|
|
62,520
|
|
|
(25,066
|
)
|
|
196,148
|
|
|||||
Notes payable, long-term debt and other obligations, less current portion
|
1,127,180
|
|
|
5,372
|
|
|
391
|
|
|
—
|
|
|
1,132,943
|
|
|||||
Fair value of derivatives embedded within convertible debt
|
112,332
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112,332
|
|
|||||
Non-current employee benefits
|
42,818
|
|
|
16,140
|
|
|
—
|
|
|
—
|
|
|
58,958
|
|
|||||
Deferred income taxes, net
|
7,420
|
|
|
40,136
|
|
|
45,529
|
|
|
—
|
|
|
93,085
|
|
|||||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement
|
1,169
|
|
|
49,861
|
|
|
12,811
|
|
|
—
|
|
|
63,841
|
|
|||||
Total liabilities
|
1,338,887
|
|
|
222,235
|
|
|
121,251
|
|
|
(25,066
|
)
|
|
1,657,307
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stockholders' (deficiency) equity attributed to Vector Group Ltd.
|
(332,000
|
)
|
|
133,765
|
|
|
367,894
|
|
|
(501,659
|
)
|
|
(332,000
|
)
|
|||||
Non-controlling interest
|
—
|
|
|
—
|
|
|
78,728
|
|
|
—
|
|
|
78,728
|
|
|||||
Total stockholders' (deficiency) equity
|
(332,000
|
)
|
|
133,765
|
|
|
446,622
|
|
|
(501,659
|
)
|
|
(253,272
|
)
|
|||||
Total liabilities and stockholders' deficiency
|
$
|
1,006,887
|
|
|
$
|
356,000
|
|
|
$
|
567,873
|
|
|
$
|
(526,725
|
)
|
|
$
|
1,404,035
|
|
|
|
|
Three Months Ended June 30, 2017
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
272,297
|
|
|
$
|
199,812
|
|
|
$
|
(120
|
)
|
|
$
|
471,989
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales
|
—
|
|
|
186,907
|
|
|
127,987
|
|
|
—
|
|
|
314,894
|
|
|||||
Operating, selling, administrative and general expenses
|
9,612
|
|
|
18,411
|
|
|
55,280
|
|
|
(120
|
)
|
|
83,183
|
|
|||||
Litigation settlement and judgment expense
|
—
|
|
|
102
|
|
|
—
|
|
|
—
|
|
|
102
|
|
|||||
Management fee expense
|
—
|
|
|
2,767
|
|
|
—
|
|
|
(2,767
|
)
|
|
—
|
|
|||||
Operating (loss) income
|
(9,612
|
)
|
|
64,110
|
|
|
16,545
|
|
|
2,767
|
|
|
73,810
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(45,883
|
)
|
|
(802
|
)
|
|
(6
|
)
|
|
—
|
|
|
(46,691
|
)
|
|||||
Change in fair value of derivatives embedded within convertible debt
|
8,134
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,134
|
|
|||||
Equity in earnings from real estate ventures
|
—
|
|
|
—
|
|
|
15,291
|
|
|
—
|
|
|
15,291
|
|
|||||
Equity in losses from investments
|
(1,442
|
)
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(1,459
|
)
|
|||||
Gain on sale of investment securities available for sale
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Impairment of investment securities available for sale
|
(87
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(87
|
)
|
|||||
Equity in earnings in consolidated subsidiaries
|
54,828
|
|
|
—
|
|
|
—
|
|
|
(54,828
|
)
|
|
—
|
|
|||||
Management fee income
|
2,767
|
|
|
—
|
|
|
—
|
|
|
(2,767
|
)
|
|
—
|
|
|||||
Other, net
|
675
|
|
|
361
|
|
|
302
|
|
|
—
|
|
|
1,338
|
|
|||||
Income before provision for income taxes
|
9,417
|
|
|
63,652
|
|
|
32,132
|
|
|
(54,828
|
)
|
|
50,373
|
|
|||||
Income tax benefit (expense)
|
17,394
|
|
|
(24,854
|
)
|
|
(11,367
|
)
|
|
—
|
|
|
(18,827
|
)
|
|||||
Net income
|
26,811
|
|
|
38,798
|
|
|
20,765
|
|
|
(54,828
|
)
|
|
31,546
|
|
|||||
Net income attributed to non-controlling interest
|
—
|
|
|
—
|
|
|
(4,735
|
)
|
|
—
|
|
|
(4,735
|
)
|
|||||
Net income attributed to Vector Group Ltd.
|
$
|
26,811
|
|
|
$
|
38,798
|
|
|
$
|
16,030
|
|
|
$
|
(54,828
|
)
|
|
$
|
26,811
|
|
Comprehensive income attributed to non-controlling interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4,735
|
)
|
|
$
|
—
|
|
|
$
|
(4,735
|
)
|
Comprehensive income attributed to Vector Group Ltd.
|
$
|
25,326
|
|
|
$
|
37,112
|
|
|
$
|
16,030
|
|
|
$
|
(53,142
|
)
|
|
$
|
25,326
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
255,648
|
|
|
$
|
182,765
|
|
|
$
|
(140
|
)
|
|
$
|
438,273
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales
|
—
|
|
|
168,614
|
|
|
115,017
|
|
|
—
|
|
|
283,631
|
|
|||||
Operating, selling, administrative and general expenses
|
9,019
|
|
|
18,943
|
|
|
56,100
|
|
|
(140
|
)
|
|
83,922
|
|
|||||
Management fee expense
|
—
|
|
|
2,663
|
|
|
—
|
|
|
(2,663
|
)
|
|
—
|
|
|||||
Operating (loss) income
|
(9,019
|
)
|
|
65,428
|
|
|
11,648
|
|
|
2,663
|
|
|
70,720
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(35,522
|
)
|
|
(843
|
)
|
|
(4
|
)
|
|
—
|
|
|
(36,369
|
)
|
|||||
Change in fair value of derivatives embedded within convertible debt
|
7,416
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,416
|
|
|||||
Equity in earnings from real estate ventures
|
—
|
|
|
—
|
|
|
2,813
|
|
|
—
|
|
|
2,813
|
|
|||||
Equity in earnings (losses) from investments
|
1,097
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
1,089
|
|
|||||
Gain on sale of investment securities available for sale
|
139
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
139
|
|
|||||
Impairment of investment securities available for sale
|
(49
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49
|
)
|
|||||
Equity in earnings in consolidated subsidiaries
|
46,441
|
|
|
—
|
|
|
—
|
|
|
(46,441
|
)
|
|
—
|
|
|||||
Management fee income
|
2,663
|
|
|
—
|
|
|
—
|
|
|
(2,663
|
)
|
|
—
|
|
|||||
Other, net
|
(93
|
)
|
|
244
|
|
|
430
|
|
|
—
|
|
|
581
|
|
|||||
Income before provision for income taxes
|
13,073
|
|
|
64,821
|
|
|
14,887
|
|
|
(46,441
|
)
|
|
46,340
|
|
|||||
Income tax benefit (expense)
|
10,942
|
|
|
(24,907
|
)
|
|
(5,038
|
)
|
|
—
|
|
|
(19,003
|
)
|
|||||
Net income
|
24,015
|
|
|
39,914
|
|
|
9,849
|
|
|
(46,441
|
)
|
|
27,337
|
|
|||||
Net income attributed to non-controlling interest
|
—
|
|
|
—
|
|
|
(3,322
|
)
|
|
—
|
|
|
(3,322
|
)
|
|||||
Net income attributed to Vector Group Ltd.
|
$
|
24,015
|
|
|
$
|
39,914
|
|
|
$
|
6,527
|
|
|
$
|
(46,441
|
)
|
|
$
|
24,015
|
|
Comprehensive income attributed to non-controlling interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,322
|
)
|
|
$
|
—
|
|
|
$
|
(3,322
|
)
|
Comprehensive income attributed to Vector Group Ltd.
|
$
|
23,746
|
|
|
$
|
39,793
|
|
|
$
|
6,527
|
|
|
$
|
(46,320
|
)
|
|
$
|
23,746
|
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
529,870
|
|
|
$
|
357,566
|
|
|
$
|
(239
|
)
|
|
$
|
887,197
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales
|
—
|
|
|
362,661
|
|
|
228,156
|
|
|
—
|
|
|
590,817
|
|
|||||
Operating, selling, administrative and general expenses
|
19,463
|
|
|
36,437
|
|
|
112,291
|
|
|
(239
|
)
|
|
167,952
|
|
|||||
Litigation settlement and judgment expense
|
—
|
|
|
1,687
|
|
|
—
|
|
|
—
|
|
|
1,687
|
|
|||||
Management fee expense
|
—
|
|
|
5,534
|
|
|
—
|
|
|
(5,534
|
)
|
|
—
|
|
|||||
Operating (loss) income
|
(19,463
|
)
|
|
123,551
|
|
|
17,119
|
|
|
5,534
|
|
|
126,741
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(91,230
|
)
|
|
(1,670
|
)
|
|
(12
|
)
|
|
—
|
|
|
(92,912
|
)
|
|||||
Change in fair value of derivatives embedded within convertible debt
|
16,705
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,705
|
|
|||||
Loss on extinguishment of debt
|
(34,110
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,110
|
)
|
|||||
Equity in earnings from real estate ventures
|
—
|
|
|
—
|
|
|
26,404
|
|
|
—
|
|
|
26,404
|
|
|||||
Equity in losses from investments
|
(2,491
|
)
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
(2,520
|
)
|
|||||
Gain on sale of investment securities available for sale
|
187
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
187
|
|
|||||
Impairment of investment securities available for sale
|
(126
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(126
|
)
|
|||||
Equity in earnings in consolidated subsidiaries
|
98,279
|
|
|
—
|
|
|
—
|
|
|
(98,279
|
)
|
|
—
|
|
|||||
Management fee income
|
5,534
|
|
|
—
|
|
|
—
|
|
|
(5,534
|
)
|
|
—
|
|
|||||
Other, net
|
1,619
|
|
|
697
|
|
|
681
|
|
|
—
|
|
|
2,997
|
|
|||||
(Loss) income before provision for income taxes
|
(25,096
|
)
|
|
122,549
|
|
|
44,192
|
|
|
(98,279
|
)
|
|
43,366
|
|
|||||
Income tax benefit (expense)
|
47,680
|
|
|
(47,405
|
)
|
|
(16,320
|
)
|
|
—
|
|
|
(16,045
|
)
|
|||||
Net income
|
22,584
|
|
|
75,144
|
|
|
27,872
|
|
|
(98,279
|
)
|
|
27,321
|
|
|||||
Net income attributed to non-controlling interest
|
—
|
|
|
—
|
|
|
(4,737
|
)
|
|
—
|
|
|
(4,737
|
)
|
|||||
Net income attributed to Vector Group Ltd.
|
$
|
22,584
|
|
|
$
|
75,144
|
|
|
$
|
23,135
|
|
|
$
|
(98,279
|
)
|
|
$
|
22,584
|
|
Comprehensive income attributed to non-controlling interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4,737
|
)
|
|
$
|
—
|
|
|
$
|
(4,737
|
)
|
Comprehensive income attributed to Vector Group Ltd.
|
$
|
21,223
|
|
|
$
|
73,493
|
|
|
$
|
23,135
|
|
|
$
|
(96,628
|
)
|
|
$
|
21,223
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
||||||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
476,790
|
|
|
$
|
342,512
|
|
|
$
|
(229
|
)
|
|
$
|
819,073
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales
|
—
|
|
|
305,358
|
|
|
214,695
|
|
|
—
|
|
|
520,053
|
|
|||||
Operating, selling, administrative and general expenses
|
18,215
|
|
|
37,216
|
|
|
108,548
|
|
|
(229
|
)
|
|
163,750
|
|
|||||
Litigation settlement and judgment expense
|
—
|
|
|
2,350
|
|
|
—
|
|
|
—
|
|
|
2,350
|
|
|||||
Management fee expense
|
—
|
|
|
5,325
|
|
|
—
|
|
|
(5,325
|
)
|
|
—
|
|
|||||
Restructuring charges
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|||||
Operating (loss) income
|
(18,215
|
)
|
|
126,500
|
|
|
19,269
|
|
|
5,325
|
|
|
132,879
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(65,280
|
)
|
|
(1,802
|
)
|
|
(7
|
)
|
|
—
|
|
|
(67,089
|
)
|
|||||
Change in fair value of derivatives embedded within convertible debt
|
17,110
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,110
|
|
|||||
Equity in earnings from real estate ventures
|
—
|
|
|
—
|
|
|
2,306
|
|
|
—
|
|
|
2,306
|
|
|||||
Gain on sale of investment securities available for sale
|
315
|
|
|
391
|
|
|
—
|
|
|
—
|
|
|
706
|
|
|||||
Impairment of investment securities available for sale
|
(90
|
)
|
|
(4,772
|
)
|
|
—
|
|
|
—
|
|
|
(4,862
|
)
|
|||||
Equity in losses from investments
|
(558
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
(582
|
)
|
|||||
Equity in earnings in consolidated subsidiaries
|
82,051
|
|
|
—
|
|
|
—
|
|
|
(82,051
|
)
|
|
—
|
|
|||||
Management fee income
|
5,325
|
|
|
—
|
|
|
—
|
|
|
(5,325
|
)
|
|
—
|
|
|||||
Other, net
|
307
|
|
|
481
|
|
|
840
|
|
|
—
|
|
|
1,628
|
|
|||||
Income before provision for income taxes
|
20,965
|
|
|
120,774
|
|
|
22,408
|
|
|
(82,051
|
)
|
|
82,096
|
|
|||||
Income tax benefit (expense)
|
22,388
|
|
|
(48,293
|
)
|
|
(7,461
|
)
|
|
—
|
|
|
(33,366
|
)
|
|||||
Net income
|
43,353
|
|
|
72,481
|
|
|
14,947
|
|
|
(82,051
|
)
|
|
48,730
|
|
|||||
Net income attributed to non-controlling interest
|
—
|
|
|
—
|
|
|
(5,377
|
)
|
|
—
|
|
|
(5,377
|
)
|
|||||
Net income attributed to Vector Group Ltd.
|
$
|
43,353
|
|
|
$
|
72,481
|
|
|
$
|
9,570
|
|
|
$
|
(82,051
|
)
|
|
$
|
43,353
|
|
Comprehensive income attributed to non-controlling interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5,377
|
)
|
|
$
|
—
|
|
|
$
|
(5,377
|
)
|
Comprehensive income attributed to Vector Group Ltd.
|
$
|
43,127
|
|
|
$
|
72,503
|
|
|
$
|
9,570
|
|
|
$
|
(82,073
|
)
|
|
$
|
43,127
|
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Net cash provided by operating activities
|
$
|
58,546
|
|
|
$
|
138,336
|
|
|
$
|
31,116
|
|
|
$
|
(110,387
|
)
|
|
$
|
117,611
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Sale of investment securities
|
22,396
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,396
|
|
|||||
Maturities of investment securities
|
93,368
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93,368
|
|
|||||
Purchase of investment securities
|
(109,891
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(109,891
|
)
|
|||||
Proceeds from sale or liquidation of long-term investments
|
—
|
|
|
—
|
|
|
466
|
|
|
—
|
|
|
466
|
|
|||||
Purchase of long-term investments
|
(26,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26,000
|
)
|
|||||
Investments in real estate ventures
|
—
|
|
|
—
|
|
|
(8,454
|
)
|
|
—
|
|
|
(8,454
|
)
|
|||||
Distributions from investments in real estate ventures
|
—
|
|
|
—
|
|
|
23,338
|
|
|
—
|
|
|
23,338
|
|
|||||
Increase in cash surrender value of life insurance policies
|
(447
|
)
|
|
(407
|
)
|
|
—
|
|
|
—
|
|
|
(854
|
)
|
|||||
Decrease (increase) in restricted assets
|
233
|
|
|
1,770
|
|
|
(3,238
|
)
|
|
—
|
|
|
(1,235
|
)
|
|||||
Issuance of notes receivable
|
—
|
|
|
—
|
|
|
(1,500
|
)
|
|
—
|
|
|
(1,500
|
)
|
|||||
Investments in subsidiaries
|
(5,749
|
)
|
|
—
|
|
|
—
|
|
|
5,749
|
|
|
—
|
|
|||||
Proceeds from sale of fixed assets
|
—
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|||||
Capital expenditures
|
(6
|
)
|
|
(2,049
|
)
|
|
(6,291
|
)
|
|
—
|
|
|
(8,346
|
)
|
|||||
Pay downs of investment securities
|
1,620
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,620
|
|
|||||
Investments in real estate, net
|
—
|
|
|
—
|
|
|
(205
|
)
|
|
—
|
|
|
(205
|
)
|
|||||
Net cash (used in) provided by investing activities
|
(24,476
|
)
|
|
(611
|
)
|
|
4,116
|
|
|
5,749
|
|
|
(15,222
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from issuance of debt
|
850,000
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
850,020
|
|
|||||
Deferred financing costs
|
(19,200
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,200
|
)
|
|||||
Repayments of debt
|
(835,000
|
)
|
|
(1,058
|
)
|
|
(87
|
)
|
|
—
|
|
|
(836,145
|
)
|
|||||
Borrowings under revolver
|
—
|
|
|
110,979
|
|
|
—
|
|
|
—
|
|
|
110,979
|
|
|||||
Repayments on revolver
|
—
|
|
|
(129,479
|
)
|
|
—
|
|
|
—
|
|
|
(129,479
|
)
|
|||||
Capital contributions received
|
—
|
|
|
300
|
|
|
5,449
|
|
|
(5,749
|
)
|
|
—
|
|
|||||
Intercompany dividends paid
|
—
|
|
|
(83,765
|
)
|
|
(26,622
|
)
|
|
110,387
|
|
|
—
|
|
|||||
Dividends and distributions on common stock
|
(104,750
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(104,750
|
)
|
|||||
Distributions to non-controlling interest
|
—
|
|
|
—
|
|
|
(165
|
)
|
|
—
|
|
|
(165
|
)
|
|||||
Proceeds from issuance of Vector common stock
|
43,230
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,230
|
|
|||||
Net cash used in financing activities
|
(65,720
|
)
|
|
(103,023
|
)
|
|
(21,405
|
)
|
|
104,638
|
|
|
(85,510
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(31,650
|
)
|
|
34,702
|
|
|
13,827
|
|
|
—
|
|
|
16,879
|
|
|||||
Cash and cash equivalents, beginning of period
|
279,815
|
|
|
14,798
|
|
|
98,917
|
|
|
—
|
|
|
393,530
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
248,165
|
|
|
$
|
49,500
|
|
|
$
|
112,744
|
|
|
$
|
—
|
|
|
$
|
410,409
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Net cash provided by operating activities
|
$
|
73,915
|
|
|
$
|
75,513
|
|
|
$
|
28,437
|
|
|
$
|
(99,040
|
)
|
|
$
|
78,825
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Sale of investment securities
|
62,312
|
|
|
4,721
|
|
|
—
|
|
|
—
|
|
|
67,033
|
|
|||||
Maturities of investment securities
|
343
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
343
|
|
|||||
Purchase of investment securities
|
(56,691
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(56,691
|
)
|
|||||
Proceeds from sale or liquidation of long-term investments
|
1,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|||||
Purchase of long-term investments
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
|||||
Investments in real estate ventures
|
—
|
|
|
—
|
|
|
(11,806
|
)
|
|
—
|
|
|
(11,806
|
)
|
|||||
Investments in real estate, net
|
—
|
|
|
—
|
|
|
(81
|
)
|
|
—
|
|
|
(81
|
)
|
|||||
Distributions from investments in real estate ventures
|
—
|
|
|
—
|
|
|
17,983
|
|
|
—
|
|
|
17,983
|
|
|||||
Increase in cash surrender value of life insurance policies
|
—
|
|
|
(393
|
)
|
|
—
|
|
|
—
|
|
|
(393
|
)
|
|||||
(Increase) decrease in restricted assets
|
(7
|
)
|
|
2,181
|
|
|
500
|
|
|
—
|
|
|
2,674
|
|
|||||
Pay downs of investment securities
|
4,926
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,926
|
|
|||||
Proceeds from sale of fixed assets
|
—
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
5
|
|
|||||
Investments in subsidiaries
|
(987
|
)
|
|
—
|
|
|
—
|
|
|
987
|
|
|
—
|
|
|||||
Capital expenditures
|
(26
|
)
|
|
(3,716
|
)
|
|
(3,873
|
)
|
|
—
|
|
|
(7,615
|
)
|
|||||
Net cash provided by investing activities
|
10,870
|
|
|
2,797
|
|
|
2,674
|
|
|
987
|
|
|
17,328
|
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from issuance of debt
|
243,225
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
243,282
|
|
|||||
Deferred financing costs
|
(6,600
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,600
|
)
|
|||||
Repayments of debt
|
—
|
|
|
(2,863
|
)
|
|
(54
|
)
|
|
—
|
|
|
(2,917
|
)
|
|||||
Borrowings under revolver
|
—
|
|
|
89,695
|
|
|
—
|
|
|
—
|
|
|
89,695
|
|
|||||
Repayments on revolver
|
—
|
|
|
(80,223
|
)
|
|
—
|
|
|
—
|
|
|
(80,223
|
)
|
|||||
Capital contributions received
|
—
|
|
|
600
|
|
|
387
|
|
|
(987
|
)
|
|
—
|
|
|||||
Intercompany dividends paid
|
—
|
|
|
(65,648
|
)
|
|
(33,392
|
)
|
|
99,040
|
|
|
—
|
|
|||||
Dividends and distributions on common stock
|
(97,846
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(97,846
|
)
|
|||||
Contributions from non-controlling interest
|
—
|
|
|
—
|
|
|
248
|
|
|
—
|
|
|
248
|
|
|||||
Distributions to non-controlling interest
|
—
|
|
|
—
|
|
|
(7,422
|
)
|
|
—
|
|
|
(7,422
|
)
|
|||||
Net cash provided by (used in) financing activities
|
138,779
|
|
|
(58,439
|
)
|
|
(40,176
|
)
|
|
98,053
|
|
|
138,217
|
|
|||||
Net increase (decrease) in cash and cash equivalents
|
223,564
|
|
|
19,871
|
|
|
(9,065
|
)
|
|
—
|
|
|
234,370
|
|
|||||
Cash and cash equivalents, beginning of period
|
111,470
|
|
|
12,375
|
|
|
116,523
|
|
|
—
|
|
|
240,368
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
335,034
|
|
|
$
|
32,246
|
|
|
$
|
107,458
|
|
|
$
|
—
|
|
|
$
|
474,738
|
|
•
|
the manufacture and sale of cigarettes in the United States through our Liggett Group LLC ("Liggett") and Vector Tobacco Inc. ("Vector Tobacco") subsidiaries, and
|
•
|
the real estate business through our New Valley LLC ("New Valley") subsidiary, which is seeking to acquire or invest in additional real estate properties or projects. New Valley owns 70.59% of Douglas Elliman Realty, LLC ("Douglas Elliman"), which operates the largest residential brokerage company in the New York metropolitan area.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
Revenues
:
|
|
|
|
|
|
|
|
|
||||||||
Tobacco
|
$
|
272,177
|
|
|
$
|
255,498
|
|
|
$
|
529,631
|
|
|
$
|
476,513
|
|
|
E-Cigarettes
|
—
|
|
|
10
|
|
|
—
|
|
|
48
|
|
|
||||
Real Estate
|
199,812
|
|
|
182,765
|
|
|
357,566
|
|
|
342,512
|
|
|
||||
Total revenues
|
$
|
471,989
|
|
|
$
|
438,273
|
|
|
$
|
887,197
|
|
|
$
|
819,073
|
|
|
Operating income (loss)
:
|
|
|
|
|
|
|
|
|
||||||||
Tobacco
|
$
|
64,407
|
|
(1)
|
$
|
66,016
|
|
|
$
|
124,177
|
|
(2)
|
$
|
127,499
|
|
(3)
|
E-Cigarettes
|
(1
|
)
|
|
(91
|
)
|
|
(78
|
)
|
|
(284
|
)
|
|
||||
Real Estate
|
16,586
|
|
|
11,706
|
|
|
17,206
|
|
|
19,380
|
|
|
||||
Corporate and Other
|
(7,182
|
)
|
|
(6,911
|
)
|
|
(14,564
|
)
|
|
(13,716
|
)
|
|
||||
Total operating income
|
$
|
73,810
|
|
|
$
|
70,720
|
|
|
$
|
126,741
|
|
|
$
|
132,879
|
|
|
(1)
|
Operating income includes
$102
of litigation judgment expense.
|
(2)
|
Operating income includes
$895
of income from MSA Settlements and
$1,687
of litigation judgment expense.
|
(3)
|
Operating income includes
$2,350
of litigation judgment expense and
$41
of restructuring expense.
|
|
|
|
|
Three Months Ended
|
|
||||||
|
|
|
|
June 30,
|
|
||||||
|
|
|
|
2017
|
|
2016
|
|
||||
|
|
|
|
|
|
||||||
Manufacturing overhead, raw materials and labor
|
|
$
|
30,504
|
|
|
$
|
29,558
|
|
|
||
Federal Excise Taxes, net
|
|
|
115,194
|
|
|
106,861
|
|
|
|||
FDA expense
|
|
|
5,039
|
|
|
4,386
|
|
|
|||
MSA expense, net of market share exemption
|
|
|
36,170
|
|
|
27,802
|
|
|
|||
Total cost of sales
|
|
|
$
|
186,907
|
|
|
$
|
168,607
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||
|
June 30,
|
||||||
|
2017
|
|
2016
|
||||
Real Estate Revenues
:
|
|
|
|
||||
Commission and other brokerage income
|
$
|
188,476
|
|
|
$
|
173,368
|
|
Property management income
|
8,573
|
|
|
7,346
|
|
||
Title fees
|
1,661
|
|
|
1,016
|
|
||
Sales on facilities primarily from Escena
|
1,102
|
|
|
1,035
|
|
||
Total real estate revenues
|
$
|
199,812
|
|
|
$
|
182,765
|
|
|
|
|
|
||||
Real Estate Cost of Sales:
|
|
|
|
||||
Commission and other brokerage income
|
$
|
126,755
|
|
|
$
|
113,953
|
|
Cost of sales on facilities primarily from Escena
|
938
|
|
|
893
|
|
||
Title fees
|
294
|
|
|
171
|
|
||
Total real estate cost of sales
|
$
|
127,987
|
|
|
$
|
115,017
|
|
|
|
|
|
Six Months Ended
|
|
||||||
|
|
|
|
June 30,
|
|
||||||
|
|
|
|
2017
|
|
2016
|
|
||||
|
|
|
|
|
|
||||||
Manufacturing overhead, raw materials and labor
|
|
$
|
60,734
|
|
|
$
|
55,369
|
|
|
||
Federal Excise Taxes, net
|
|
|
224,562
|
|
|
197,707
|
|
|
|||
FDA expense
|
|
|
10,162
|
|
|
9,632
|
|
|
|||
MSA expense, net of market share exemption
|
|
|
67,203
|
|
(1)
|
42,637
|
|
|
|||
|
Total cost of sales
|
|
|
$
|
362,661
|
|
|
$
|
305,345
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes
$895
reduction in expense from MSA Settlements.
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2017
|
|
2016
|
||||
Real Estate Revenues
:
|
|
|
|
||||
Commission and other brokerage income
|
$
|
335,369
|
|
|
$
|
322,722
|
|
Property management income
|
16,356
|
|
|
14,464
|
|
||
Title fees
|
2,522
|
|
|
2,128
|
|
||
Sales on facilities primarily from Escena
|
3,319
|
|
|
3,195
|
|
||
Other
|
—
|
|
|
3
|
|
||
Total real estate revenues
|
$
|
357,566
|
|
|
$
|
342,512
|
|
|
|
|
|
||||
Real Estate Cost of Sales
:
|
|
|
|
||||
Commission and other brokerage income
|
$
|
225,658
|
|
|
$
|
212,365
|
|
Cost of sales on facilities primarily from Escena
|
2,058
|
|
|
2,010
|
|
||
Title fees
|
440
|
|
|
320
|
|
||
Total real estate cost of sales
|
$
|
228,156
|
|
|
$
|
214,695
|
|
|
(Dollars in Thousands. Area and Unit Information in Ones)
|
||||||||||||||||||||||||||
|
Location
|
Date of Initial Investment
|
Percentage Owned
|
Net Cash Invested (Returned)
|
Cumulative Earnings (Losses)
|
Carrying Value as of June 30, 2017
|
Future Capital Commit-
ments from New Valley (1) |
Projected Residential and/or Hotel Area
|
Projected Commercial Space
|
Projected Number of Residential Lots, Units and/or Hotel Rooms
|
Actual/Projected Construction Start Date
|
Projected Construction End Date
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sagaponack
|
Sagaponack, NY
|
April 2015
|
100
|
%
|
$
|
13,053
|
|
$
|
—
|
|
$
|
13,053
|
|
$
|
—
|
|
TBD
|
|
|
N/A
|
|
|
TBD
|
|
|
N/A
|
N/A
|
Escena, net
|
Master planned community, golf course, restaurant and shop in Palm Springs, CA
|
March 2008
|
100
|
%
|
2,644
|
|
7,978
|
|
10,622
|
|
—
|
|
450
|
|
Acres
|
|
|
667
450 |
|
R Lots
H |
N/A
|
N/A
|
|||||
Investments in real estate, net
|
|
|
|
$
|
15,697
|
|
$
|
7,978
|
|
$
|
23,675
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investments in real estate ventures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
10 Madison Square West (1107 Broadway)
|
Flatiron District/NoMad neighborhood, Manhattan, NY
|
October 2011
|
5.0
|
%
|
$
|
(39,172
|
)
|
$
|
39,172
|
|
$
|
—
|
|
$
|
—
|
|
260,000
|
|
SF
|
20,000
|
|
SF
|
124
|
|
R
|
August 2012
|
August 2017
|
The Marquand (11 East 68th Street)
|
Upper East Side, Manhattan, NY
|
December 2011
|
18.0
|
%
|
3,396
|
|
2,681
|
|
6,077
|
|
—
|
|
90,000
|
|
SF
|
—
|
|
|
29
|
|
R
|
June 2012
|
Completed
|
||||
11 Beach Street
|
TriBeCa, Manhattan, NY
|
June 2012
|
49.5
|
%
|
10,790
|
|
9,194
|
|
19,984
|
|
—
|
|
97,000
|
|
SF
|
—
|
|
|
27
|
|
R
|
May 2014
|
October 2017
|
||||
20 Times Square (701 Seventh Avenue)
|
Times Square, Manhattan, NY
|
August 2012
|
7.9
|
%
|
17,381
|
|
3,920
|
|
21,301
|
|
—
|
|
252,000
|
|
SF
|
80,000
|
|
SF
|
452
|
|
H
|
September 2013
|
March 2018
|
||||
111 Murray Street
|
TriBeCa, Manhattan, NY
|
May 2013
|
9.5
|
%
|
25,719
|
|
(822
|
)
|
24,897
|
|
—
|
|
330,000
|
|
SF
|
1,700
|
|
SF
|
157
|
|
R
|
September 2014
|
September 2018
|
||||
160 Leroy Street (2)
|
West Greenwich Village, Manhattan, NY
|
March 2013
|
3.1
|
%
|
2,293
|
|
2,020
|
|
4,313
|
|
—
|
|
130,000
|
|
SF
|
—
|
|
|
57
|
|
R
|
Fall 2015
|
March 2018
|
||||
215 Chrystie Street
|
Lower East Side, Manhattan, NY
|
December 2012
|
18.4
|
%
|
—
|
|
—
|
|
—
|
|
—
|
|
246,000
|
|
SF
|
—
|
|
|
11
367 |
|
R
H |
June 2014
|
November 2017
|
||||
The Dutch (25-19 43rd Avenue)
|
Long Island City, NY
|
May 2014
|
9.9
|
%
|
980
|
|
246
|
|
1,226
|
|
|
65,000
|
|
SF
|
—
|
|
|
86
|
|
R
|
September 2014
|
December 2017
|
|||||
1 QPS Tower (23-10 Queens Plaza South)
|
Long Island City, NY
|
December 2012
|
45.4
|
%
|
14,711
|
|
(1,318
|
)
|
13,393
|
|
—
|
|
260,000
|
|
SF
|
25,000
|
|
SF
|
391
|
|
R
|
March 2014
|
October 2017
|
||||
87 Park (8701 Collins Avenue)
|
Miami Beach, FL
|
December 2013
|
15.0
|
%
|
11,821
|
|
1,114
|
|
12,935
|
|
—
|
|
160,000
|
|
SF
|
TBD
|
|
|
70
|
|
R
|
October 2015
|
September 2019
|
||||
125 Greenwich Street (2)
|
Financial District, Manhattan, NY
|
August 2014
|
13.3
|
%
|
7,992
|
|
2,228
|
|
10,220
|
|
—
|
|
306,000
|
|
SF
|
16,000
|
|
SF
|
273
|
|
R
|
March 2015
|
February 2020
|
||||
West Hollywood Edition (9040 Sunset Boulevard)
|
West Hollywood, CA
|
October 2014
|
48.5
|
%
|
1,359
|
|
(1,295
|
)
|
64
|
|
—
|
|
210,000
|
|
SF
|
—
|
|
|
20
190 |
|
R
H |
May 2015
|
July 2018
|
||||
The Eleventh (76 Eleventh Avenue)
|
West Chelsea, Manhattan, NY
|
May 2015
|
5.1
|
%
|
17,000
|
|
3,577
|
|
20,577
|
|
—
|
|
630,000
|
|
SF
|
85,000
|
|
SF
|
241
137 |
|
R
H |
September 2016
|
March 2019
|
||||
Monad Terrace
|
Miami Beach, FL
|
May 2015
|
22.2
|
%
|
7,635
|
|
519
|
|
8,154
|
|
—
|
|
160,000
|
|
SF
|
—
|
|
|
59
|
|
R
|
May 2016
|
February 2019
|
||||
Takanasee
|
Long Branch, NJ
|
December 2015
|
22.8
|
%
|
4,817
|
|
952
|
|
5,769
|
|
—
|
|
63,000
|
|
SF
|
—
|
|
|
13
|
|
R
|
June 2017
|
TBD
|
||||
New Brookland
|
Brooklyn, NY
|
April 2017
|
9.8
|
%
|
402
|
|
8
|
|
410
|
|
—
|
|
24,000
|
|
SF
|
—
|
|
|
33
|
|
R
|
August 2017
|
March 2019
|
||||
Witkoff GP Partners
|
Santa Monica, CA
|
March 2017
|
3.0
|
%
|
5,456
|
|
7
|
|
5,463
|
|
14,544
|
|
247,000
|
|
SF
|
58,000
|
|
SF
|
249
|
|
R
|
July 2018
|
August 2020
|
||||
Condominium and Mixed Use Development
|
|
|
|
$
|
92,580
|
|
$
|
62,203
|
|
$
|
154,783
|
|
$
|
14,544
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Maryland Portfolio
|
Primarily Baltimore County, MD
|
July 2012
|
7.6
|
%
|
$
|
986
|
|
$
|
(986
|
)
|
$
|
—
|
|
$
|
—
|
|
N/A
|
|
|
N/A
|
|
|
5,517
|
|
R
|
N/A
|
N/A
|
ST Portfolio
|
Houston, TX
|
November 2013
|
16.3
|
%
|
5,857
|
|
1,601
|
|
7,458
|
|
—
|
|
400,000
|
|
SF
|
20,065
|
|
SF
|
396
|
|
R
|
N/A
|
N/A
|
||||
Apartment Buildings
|
|
|
|
$
|
6,843
|
|
$
|
615
|
|
$
|
7,458
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Park Lane Hotel
|
Central Park South, Manhattan, NY
|
November 2013
|
5.2
|
%
|
$
|
29,315
|
|
$
|
(7,089
|
)
|
$
|
22,226
|
|
$
|
—
|
|
445,600
|
|
SF
|
—
|
|
|
628
|
|
H
|
N/A
|
N/A
|
Coral Beach and Tennis Club
|
Coral Beach, Bermuda
|
December 2013
|
49.0
|
%
|
6,048
|
|
(3,547
|
)
|
2,501
|
|
—
|
|
52
|
|
Acres
|
—
|
|
|
101
|
|
H
|
N/A
|
N/A
|
||||
Hotels
|
|
|
|
$
|
35,363
|
|
$
|
(10,636
|
)
|
$
|
24,727
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The Plaza at Harmon Meadow
|
Secaucus, NJ
|
March 2015
|
49.0
|
%
|
$
|
4,835
|
|
$
|
(2,015
|
)
|
$
|
2,820
|
|
$
|
—
|
|
—
|
|
—
|
219,382
|
|
SF
|
—
|
|
—
|
N/A
|
N /A
|
Wynn Las Vegas Retail
|
Las Vegas, NV
|
December 2016
|
2.1
|
%
|
9,908
|
|
(64
|
)
|
9,844
|
|
—
|
|
—
|
|
—
|
90,000
|
|
SF
|
—
|
|
—
|
N/A
|
N/A
|
||||
Commercial
|
|
|
|
$
|
14,743
|
|
$
|
(2,079
|
)
|
$
|
12,664
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investments in real estate ventures
|
|
|
|
$
|
149,529
|
|
$
|
50,103
|
|
$
|
199,632
|
|
$
|
14,544
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Carrying Value
|
|
|
|
$
|
165,226
|
|
$
|
58,081
|
|
$
|
223,307
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) This column only represents capital commitments required under the various joint venture agreements. However, many of the operating agreements provide for the operating partner to call capital. If a joint venture partner, such as New Valley, declines to fund the capital call, then the partner’s ownership percentage could either be diluted or, in some situations, the character of a funding member’s contribution would be converted from a capital contribution to a member loan.
|
|||||||||||||||||||||||||||
(2) Carrying value as of June 30, 2017, includes non-controlling interest of $2,018 and $1,815, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
N/A - Not applicable
|
SF - Square feet
|
H - Hotel rooms
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
TBD -To be determined
|
R - Residential Units
|
R Lots - Residential lots
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indenture
|
|
June 30,
2017 |
Covenant
|
|
Requirement
|
|
|
Consolidated EBITDA, as defined
|
|
$75,000
|
|
$320,114
|
Leverage ratio, as defined
|
|
<3.0 to 1
|
|
1.86 to 1
|
Secured leverage ratio, as defined
|
|
<1.5 to 1
|
|
0.9 to 1
|
•
|
economic outlook,
|
•
|
capital expenditures,
|
•
|
cost reduction,
|
•
|
legislation and regulations,
|
•
|
cash flows,
|
•
|
operating performance,
|
•
|
litigation,
|
•
|
impairment charges and cost saving associated with restructurings of our tobacco operations, and
|
•
|
related industry developments (including trends affecting our business, financial condition and results of operations).
|
•
|
general economic and market conditions and any changes therein, due to acts of war and terrorism or otherwise,
|
•
|
governmental regulations and policies,
|
•
|
effects of industry competition,
|
•
|
impact of business combinations, including acquisitions and divestitures, both internally for us and externally in the tobacco industry,
|
•
|
impact of legislation on our results of operations and product costs, i.e. the impact of federal legislation providing for regulation of tobacco products by FDA,
|
•
|
impact of substantial increases in federal, state and local excise taxes,
|
•
|
uncertainty related to product liability and other tobacco-related litigations including the
Engle
progeny cases pending in Florida and other individual and class action cases where certain plaintiffs have alleged compensatory and punitive damage amounts ranging into the hundreds of million and even billions of dollars; and,
|
•
|
potential additional payment obligations for us under the MSA and other settlement agreements with the states.
|
|
|
VECTOR GROUP LTD.
|
|
|
(Registrant)
|
|
|
|
|
|
By: /s/ J. Bryant Kirkland III
|
|
|
J. Bryant Kirkland III
|
|
|
Senior Vice President, Treasurer and
|
|
|
Chief Financial Officer
|
Date:
|
August 4, 2017
|
|
1 Year Vector Chart |
1 Month Vector Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions