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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 | |
---|---|---|---|---|---|---|---|---|
0.43 | 4.59% | 9.80 | 9.89 | 9.32 | 9.46 | 1,773,514 | 01:00:00 |
|
|
|
|
Delaware
|
1-5759
|
65-0949535
|
(State or other jurisdiction of incorporation
|
Commission File Number
|
(I.R.S. Employer Identification No.)
|
incorporation or organization)
|
|
|
|
☒
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging Growth Company
|
Title of each class:
|
Trading
|
Name of each exchange
|
|
Symbol(s)
|
on which registered:
|
Common stock, par value $0.10 per share
|
VGR
|
New York Stock Exchange
|
|
|
Page
|
PART I. FINANCIAL INFORMATION
|
|
|
|
Item 1. Vector Group Ltd. Condensed Consolidated Financial Statements (Unaudited):
|
|
|
|
Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018
|
|
|
|
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018
|
|
|
|
Condensed Consolidated Statements of Stockholders' Deficiency for the three and six months ended June 30, 2019 and 2018
|
|
|
|
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018
|
|
|
|
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,
2019 |
|
December 31,
2018 |
||||
ASSETS:
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
323,861
|
|
|
$
|
584,581
|
|
Investment securities at fair value
|
135,100
|
|
|
131,569
|
|
||
Accounts receivable - trade, net
|
44,347
|
|
|
34,246
|
|
||
Inventories
|
96,934
|
|
|
90,997
|
|
||
Other current assets
|
38,251
|
|
|
30,828
|
|
||
Total current assets
|
638,493
|
|
|
872,221
|
|
||
Property, plant and equipment, net
|
84,262
|
|
|
86,736
|
|
||
Investments in real estate, net
|
27,212
|
|
|
26,220
|
|
||
Long-term investments (of which $53,175 and $54,628 were carried at fair value)
|
63,814
|
|
|
66,259
|
|
||
Investments in real estate ventures
|
144,766
|
|
|
141,105
|
|
||
Operating lease right of use assets
|
135,134
|
|
|
—
|
|
||
Goodwill and other intangible assets, net
|
266,082
|
|
|
266,611
|
|
||
Other assets
|
95,397
|
|
|
90,352
|
|
||
Total assets
|
$
|
1,455,160
|
|
|
$
|
1,549,504
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current portion of notes payable and long-term debt
|
$
|
250,659
|
|
|
$
|
256,134
|
|
Current portion of fair value of derivatives embedded within convertible debt
|
17,287
|
|
|
6,635
|
|
||
Current payments due under the Master Settlement Agreement
|
85,651
|
|
|
36,561
|
|
||
Income taxes payable, net
|
8,345
|
|
|
5,252
|
|
||
Current operating lease liability
|
20,339
|
|
|
—
|
|
||
Other current liabilities
|
175,786
|
|
|
180,338
|
|
||
Total current liabilities
|
558,067
|
|
|
484,920
|
|
||
Notes payable, long-term debt and other obligations, less current portion
|
1,180,151
|
|
|
1,386,697
|
|
||
Fair value of derivatives embedded within convertible debt
|
—
|
|
|
24,789
|
|
||
Non-current employee benefits
|
62,101
|
|
|
61,288
|
|
||
Deferred income taxes, net
|
41,465
|
|
|
37,411
|
|
||
Non-current operating lease liability
|
139,729
|
|
|
—
|
|
||
Payments due under the Master Settlement Agreement
|
17,275
|
|
|
16,383
|
|
||
Other liabilities
|
63,068
|
|
|
85,382
|
|
||
Total liabilities
|
2,061,856
|
|
|
2,096,870
|
|
||
Commitments and contingencies (Note 9)
|
|
|
|
||||
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,140,953,900 and 140,914,642 shares issued and outstanding
|
14,095
|
|
|
14,092
|
|
||
Accumulated deficit
|
(597,786
|
)
|
|
(542,169
|
)
|
||
Accumulated other comprehensive loss
|
(23,493
|
)
|
|
(19,982
|
)
|
||
Total Vector Group Ltd. stockholders' deficiency
|
(607,184
|
)
|
|
(548,059
|
)
|
||
Non-controlling interest
|
488
|
|
|
693
|
|
||
Total stockholders' deficiency
|
(606,696
|
)
|
|
(547,366
|
)
|
||
Total liabilities and stockholders' deficiency
|
$
|
1,455,160
|
|
|
$
|
1,549,504
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Tobacco*
|
$
|
294,501
|
|
|
$
|
274,833
|
|
|
$
|
551,257
|
|
|
$
|
541,949
|
|
Real estate
|
243,931
|
|
|
206,655
|
|
|
408,099
|
|
|
368,505
|
|
||||
Total revenues
|
538,432
|
|
|
481,488
|
|
|
959,356
|
|
|
910,454
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of sales:
|
|
|
|
|
|
|
|
||||||||
Tobacco*
|
204,461
|
|
|
192,761
|
|
|
381,764
|
|
|
377,723
|
|
||||
Real estate
|
163,713
|
|
|
140,005
|
|
|
272,430
|
|
|
249,318
|
|
||||
Total cost of sales
|
368,174
|
|
|
332,766
|
|
|
654,194
|
|
|
627,041
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating, selling, administrative and general expenses
|
93,359
|
|
|
86,336
|
|
|
185,673
|
|
|
175,412
|
|
||||
Litigation settlement and judgment expense (income)
|
655
|
|
|
525
|
|
|
655
|
|
|
(1,944
|
)
|
||||
Operating income
|
76,244
|
|
|
61,861
|
|
|
118,834
|
|
|
109,945
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other income (expenses):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(32,753
|
)
|
|
(48,421
|
)
|
|
(70,273
|
)
|
|
(94,368
|
)
|
||||
Change in fair value of derivatives embedded within convertible debt
|
3,788
|
|
|
10,717
|
|
|
14,137
|
|
|
21,284
|
|
||||
Equity in earnings (losses) from real estate ventures
|
6,391
|
|
|
(2,112
|
)
|
|
3,952
|
|
|
(8,672
|
)
|
||||
Other, net
|
3,096
|
|
|
9,711
|
|
|
11,898
|
|
|
9,179
|
|
||||
Income before provision for income taxes
|
56,766
|
|
|
31,756
|
|
|
78,548
|
|
|
37,368
|
|
||||
Income tax expense
|
17,459
|
|
|
12,760
|
|
|
24,208
|
|
|
14,708
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
39,307
|
|
|
18,996
|
|
|
54,340
|
|
|
22,660
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net (income) loss attributed to non-controlling interest
|
—
|
|
|
(1,178
|
)
|
|
(80
|
)
|
|
2,369
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income attributed to Vector Group Ltd.
|
$
|
39,307
|
|
|
$
|
17,818
|
|
|
$
|
54,260
|
|
|
$
|
25,029
|
|
|
|
|
|
|
|
|
|
||||||||
Per basic common share:
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income applicable to common shares attributed to Vector Group Ltd.
|
$
|
0.27
|
|
|
$
|
0.12
|
|
|
$
|
0.36
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
||||||||
Per diluted common share:
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income applicable to common shares attributed to Vector Group Ltd.
|
$
|
0.27
|
|
|
$
|
0.12
|
|
|
$
|
0.35
|
|
|
$
|
0.15
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
||||||||||||
Net income
|
$
|
39,307
|
|
|
$
|
18,996
|
|
|
$
|
54,340
|
|
|
$
|
22,660
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains (losses) on investment securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Change in net unrealized gains (losses)
|
346
|
|
|
(230
|
)
|
|
723
|
|
|
(922
|
)
|
||||
Net unrealized (gains) losses reclassified into net income
|
(4
|
)
|
|
229
|
|
|
(37
|
)
|
|
824
|
|
||||
Net unrealized gains (losses) on investment securities available for sale
|
342
|
|
|
(1
|
)
|
|
686
|
|
|
(98
|
)
|
||||
|
|
|
|
|
|
|
|
|
|||||||
Net change in pension-related amounts
|
|
|
|
|
|
|
|
||||||||
Amortization of loss
|
491
|
|
|
441
|
|
|
948
|
|
|
883
|
|
||||
Net change in pension-related amounts
|
491
|
|
|
441
|
|
|
948
|
|
|
883
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income
|
833
|
|
|
440
|
|
|
1,634
|
|
|
785
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax effect on:
|
|
|
|
|
|
|
|
||||||||
Change in net unrealized gains (losses) on investment securities
|
(94
|
)
|
|
63
|
|
|
(198
|
)
|
|
252
|
|
||||
Net unrealized (gains) losses reclassified into net income on investment securities
|
1
|
|
|
(63
|
)
|
|
10
|
|
|
(226
|
)
|
||||
Pension-related amounts
|
(135
|
)
|
|
(121
|
)
|
|
(260
|
)
|
|
(242
|
)
|
||||
Income tax provision on other comprehensive income
|
(228
|
)
|
|
(121
|
)
|
|
(448
|
)
|
|
(216
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income, net of tax
|
605
|
|
|
319
|
|
|
1,186
|
|
|
569
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
39,912
|
|
|
19,315
|
|
|
55,526
|
|
|
23,229
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive loss (income) attributed to non-controlling interest
|
—
|
|
|
(1,178
|
)
|
|
(80
|
)
|
|
2,369
|
|
||||
Comprehensive income attributed to Vector Group Ltd.
|
$
|
39,912
|
|
|
$
|
18,137
|
|
|
$
|
55,446
|
|
|
$
|
25,598
|
|
|
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 April 1, 2019
|
140,899,065
|
|
|
$
|
14,090
|
|
|
$
|
—
|
|
|
$
|
(580,581
|
)
|
|
$
|
(24,098
|
)
|
|
$
|
488
|
|
|
$
|
(590,101
|
)
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
39,307
|
|
|
—
|
|
|
—
|
|
|
39,307
|
|
||||||
Total other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
605
|
|
|
—
|
|
|
605
|
|
||||||
Distributions and dividends on common stock ($0.40 per share)
|
—
|
|
|
—
|
|
|
(2,285
|
)
|
|
(56,512
|
)
|
|
—
|
|
|
—
|
|
|
(58,797
|
)
|
||||||
Restricted stock grant
|
60,000
|
|
|
6
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Surrender of shares in connection with restricted stock vesting
|
(5,165
|
)
|
|
(1
|
)
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
2,338
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,338
|
|
||||||
Balance as of June 30, 2019
|
140,953,900
|
|
|
$
|
14,095
|
|
|
$
|
—
|
|
|
$
|
(597,786
|
)
|
|
$
|
(23,493
|
)
|
|
$
|
488
|
|
|
$
|
(606,696
|
)
|
|
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 April 1, 2018
|
134,365,424
|
|
|
$
|
13,437
|
|
|
$
|
—
|
|
|
$
|
(459,996
|
)
|
|
$
|
(18,357
|
)
|
|
$
|
70,697
|
|
|
$
|
(394,219
|
)
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
17,818
|
|
|
—
|
|
|
1,178
|
|
|
18,996
|
|
||||||
Total other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
319
|
|
|
—
|
|
|
319
|
|
||||||
Distributions and dividends on common stock ($0.38 per share)
|
—
|
|
|
—
|
|
|
(2,453
|
)
|
|
(53,459
|
)
|
|
—
|
|
|
—
|
|
|
(55,912
|
)
|
||||||
Restricted stock grant
|
31,666
|
|
|
3
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Effect of stock dividend*
|
6,719,855
|
|
|
672
|
|
|
—
|
|
|
(672
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
2,456
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,456
|
|
||||||
Distributions to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(359
|
)
|
|
(359
|
)
|
||||||
Balance as of June 30, 2018
|
141,116,945
|
|
|
$
|
14,112
|
|
|
$
|
—
|
|
|
$
|
(496,309
|
)
|
|
$
|
(18,038
|
)
|
|
$
|
71,516
|
|
|
$
|
(428,719
|
)
|
|
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, 2019
|
140,914,642
|
|
|
$
|
14,092
|
|
|
$
|
—
|
|
|
$
|
(542,169
|
)
|
|
$
|
(19,982
|
)
|
|
$
|
693
|
|
|
$
|
(547,366
|
)
|
Impact of adoption of new accounting standards
|
—
|
|
|
—
|
|
|
—
|
|
|
3,147
|
|
|
(4,697
|
)
|
|
—
|
|
|
(1,550
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
54,260
|
|
|
—
|
|
|
80
|
|
|
54,340
|
|
||||||
Total other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,186
|
|
|
—
|
|
|
1,186
|
|
||||||
Distributions and dividends on common stock ($0.80 per share)
|
—
|
|
|
—
|
|
|
(4,550
|
)
|
|
(113,024
|
)
|
|
—
|
|
|
—
|
|
|
(117,574
|
)
|
||||||
Restricted stock grant
|
60,000
|
|
|
6
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Surrender of shares in connection with restricted stock vesting
|
(20,742
|
)
|
|
(3
|
)
|
|
(218
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(221
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
4,774
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,774
|
|
||||||
Distributions to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(285
|
)
|
|
(285
|
)
|
||||||
Balance as of June 30, 2019
|
140,953,900
|
|
|
$
|
14,095
|
|
|
$
|
—
|
|
|
$
|
(597,786
|
)
|
|
$
|
(23,493
|
)
|
|
$
|
488
|
|
|
$
|
(606,696
|
)
|
|
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, 2018
|
134,365,424
|
|
|
$
|
13,437
|
|
|
$
|
—
|
|
|
$
|
(414,785
|
)
|
|
$
|
(12,571
|
)
|
|
$
|
82,159
|
|
|
$
|
(331,760
|
)
|
Impact of adoption of new accounting standards
|
—
|
|
|
—
|
|
|
—
|
|
|
1,094
|
|
|
(6,036
|
)
|
|
(7,915
|
)
|
|
(12,857
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
25,029
|
|
|
—
|
|
|
(2,369
|
)
|
|
22,660
|
|
||||||
Total other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
569
|
|
|
—
|
|
|
569
|
|
||||||
Distributions and dividends on common stock ($0.76 per share)
|
—
|
|
|
—
|
|
|
(4,837
|
)
|
|
(106,975
|
)
|
|
—
|
|
|
—
|
|
|
(111,812
|
)
|
||||||
Restricted stock grant
|
31,666
|
|
|
3
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Effect of stock dividend*
|
6,719,855
|
|
|
672
|
|
|
—
|
|
|
(672
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
4,840
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,840
|
|
||||||
Distributions to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(359
|
)
|
|
(359
|
)
|
||||||
Balance as of June 30, 2018
|
141,116,945
|
|
|
$
|
14,112
|
|
|
$
|
—
|
|
|
$
|
(496,309
|
)
|
|
$
|
(18,038
|
)
|
|
$
|
71,516
|
|
|
$
|
(428,719
|
)
|
|
Six Months Ended
|
|
Six Months Ended
|
||||
|
June 30,
2019 |
|
June 30,
2018 |
||||
Net cash provided by operating activities
|
$
|
98,102
|
|
|
$
|
122,426
|
|
Cash flows from investing activities:
|
|
|
|
||||
Sale of investment securities
|
12,942
|
|
|
2,647
|
|
||
Maturities of investment securities
|
28,610
|
|
|
10,598
|
|
||
Purchase of investment securities
|
(44,222
|
)
|
|
(12,402
|
)
|
||
Investments in real estate ventures
|
(21,908
|
)
|
|
(4,343
|
)
|
||
Distributions from investments in real estate ventures
|
23,200
|
|
|
27,134
|
|
||
Increase in cash surrender value of life insurance policies
|
(789
|
)
|
|
(809
|
)
|
||
Decrease in restricted assets
|
668
|
|
|
262
|
|
||
Proceeds from sale of fixed assets
|
8
|
|
|
—
|
|
||
Capital expenditures
|
(6,320
|
)
|
|
(8,616
|
)
|
||
Repayments of notes receivable
|
—
|
|
|
32
|
|
||
Purchase of subsidiaries
|
(668
|
)
|
|
(403
|
)
|
||
Pay downs of investment securities
|
545
|
|
|
928
|
|
||
Investments in real estate, net
|
(1,153
|
)
|
|
(1,009
|
)
|
||
Net cash (used in) provided by investing activities
|
(9,087
|
)
|
|
14,019
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Deferred financing costs
|
(33
|
)
|
|
—
|
|
||
Repayments of debt
|
(230,771
|
)
|
|
(987
|
)
|
||
Borrowings under revolver
|
172,224
|
|
|
134,310
|
|
||
Repayments on revolver
|
(169,727
|
)
|
|
(137,877
|
)
|
||
Dividends and distributions on common stock
|
(118,748
|
)
|
|
(112,462
|
)
|
||
Distributions to non-controlling interest
|
(285
|
)
|
|
(359
|
)
|
||
Net cash used in financing activities
|
(347,340
|
)
|
|
(117,375
|
)
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(258,325
|
)
|
|
19,070
|
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
591,729
|
|
|
310,937
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
333,404
|
|
|
$
|
330,007
|
|
1
.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
(a)
|
Basis of Presentation
:
|
(b)
|
Distributions and Dividends on Common Stock
:
|
(c)
|
Earnings Per Share (“EPS”)
:
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income attributed to Vector Group Ltd.
|
$
|
39,307
|
|
|
$
|
17,818
|
|
|
$
|
54,260
|
|
|
$
|
25,029
|
|
Income attributed to participating securities
|
(2,027
|
)
|
|
(1,692
|
)
|
|
(4,029
|
)
|
|
(3,464
|
)
|
||||
Net income applicable to common shares attributed to Vector Group Ltd.
|
$
|
37,280
|
|
|
$
|
16,126
|
|
|
$
|
50,231
|
|
|
$
|
21,565
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income attributed to Vector Group Ltd.
|
$
|
39,307
|
|
|
$
|
17,818
|
|
|
$
|
54,260
|
|
|
$
|
25,029
|
|
Income attributable to 7.5% Variable Interest Senior Convertible Notes
|
—
|
|
|
—
|
|
|
(1,246
|
)
|
|
—
|
|
||||
Income attributed to participating securities
|
(2,027
|
)
|
|
(1,692
|
)
|
|
(4,029
|
)
|
|
(3,464
|
)
|
||||
Net income applicable to common shares attributed to Vector Group Ltd.
|
$
|
37,280
|
|
|
$
|
16,126
|
|
|
$
|
48,985
|
|
|
$
|
21,565
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
|
|
June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Weighted-average shares for basic EPS
|
139,532,405
|
|
|
139,301,817
|
|
|
139,514,592
|
|
|
139,295,176
|
|
Plus incremental shares related to convertible debt
|
—
|
|
|
—
|
|
|
1,380,717
|
|
|
—
|
|
Plus incremental shares related to stock options and non-vested restricted stock
|
11,507
|
|
|
335,827
|
|
|
13,564
|
|
|
336,287
|
|
Weighted-average shares for diluted EPS
|
139,543,912
|
|
|
139,637,644
|
|
|
140,908,873
|
|
|
139,631,463
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Weighted-average shares of non-vested restricted stock
|
1,340,781
|
|
|
—
|
|
|
1,340,781
|
|
|
—
|
|
||||
Weighted-average expense per share
|
$
|
18.82
|
|
|
$
|
—
|
|
|
$
|
18.82
|
|
|
$
|
—
|
|
Weighted-average number of shares issuable upon conversion of debt
|
10,901,963
|
|
|
28,819,626
|
|
|
10,901,963
|
|
|
28,819,626
|
|
||||
Weighted-average conversion price
|
$
|
21.28
|
|
|
$
|
16.96
|
|
|
$
|
21.28
|
|
|
$
|
16.96
|
|
(d)
|
Fair Value of Derivatives Embedded within Convertible Debt
:
|
(e)
|
Investments in Real Estate Ventures:
|
(f)
|
Other, Net
:
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest and dividend income
|
$
|
3,139
|
|
|
$
|
2,145
|
|
|
$
|
6,347
|
|
|
$
|
4,067
|
|
Equity in (losses) earnings from investments
|
(1,685
|
)
|
|
4,813
|
|
|
(323
|
)
|
|
5,975
|
|
||||
Net gains (losses) recognized on investment securities
|
2,315
|
|
|
3,006
|
|
|
7,088
|
|
|
(333
|
)
|
||||
Net periodic benefit cost other than the service costs
|
(575
|
)
|
|
(254
|
)
|
|
(1,116
|
)
|
|
(507
|
)
|
||||
Other (expense) income
|
(98
|
)
|
|
1
|
|
|
(98
|
)
|
|
(23
|
)
|
||||
Other, net
|
$
|
3,096
|
|
|
$
|
9,711
|
|
|
$
|
11,898
|
|
|
$
|
9,179
|
|
(g)
|
Other Assets
:
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Restricted assets
|
$
|
6,327
|
|
|
$
|
6,306
|
|
Prepaid pension costs
|
24,489
|
|
|
23,869
|
|
||
Other assets
|
64,581
|
|
|
60,177
|
|
||
Total other assets
|
$
|
95,397
|
|
|
$
|
90,352
|
|
(h)
|
Other Current Liabilities
:
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Accounts payable
|
$
|
9,852
|
|
|
$
|
13,144
|
|
Accrued promotional expenses
|
26,586
|
|
|
37,940
|
|
||
Accrued excise and payroll taxes payable, net
|
16,044
|
|
|
14,612
|
|
||
Accrued interest
|
32,375
|
|
|
38,673
|
|
||
Commissions payable
|
26,698
|
|
|
12,975
|
|
||
Accrued salary and benefits
|
21,231
|
|
|
30,228
|
|
||
Contract liabilities
|
8,159
|
|
|
—
|
|
||
Allowance for sales returns
|
7,042
|
|
|
6,935
|
|
||
Other current liabilities
|
27,799
|
|
|
25,831
|
|
||
Total other current liabilities
|
$
|
175,786
|
|
|
$
|
180,338
|
|
(i)
|
Goodwill and Other Intangible Assets, Net
:
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Goodwill
|
$
|
78,008
|
|
|
$
|
77,568
|
|
|
|
|
|
||||
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
|
563
|
|
|
1,532
|
|
||
|
|
|
|
||||
Total goodwill and other intangible assets, net
|
$
|
266,082
|
|
|
$
|
266,611
|
|
(i)
|
Reconciliation of Cash, Cash Equivalents and Restricted Cash
:
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Cash and cash equivalents
|
$
|
323,861
|
|
|
$
|
584,581
|
|
Restricted cash and cash equivalents included in other current assets
|
5,086
|
|
|
2,697
|
|
||
Restricted cash and cash equivalents included in other assets
|
4,457
|
|
|
4,451
|
|
||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows
|
$
|
333,404
|
|
|
$
|
591,729
|
|
2
.
|
REVENUE RECOGNITION
|
1.
|
The Company applied the optional exemption in paragraph 606-10-50-14 of Topic 606, and has not disclosed the amount of the transaction price allocated to the remaining performance obligations for the Real Estate property management business because the contracts to provide property management services are typically annual contracts.
|
2.
|
The Company applied the optional exemption in paragraph 606-10-50-14A of Topic 606, and has not disclosed the amount of the transaction price allocated to the remaining performance obligations for the Real Estate development marketing business because the transaction prices in these contracts are comprised entirely of variable consideration based on the ultimate selling price of each unit in the subject property.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Tobacco Segment Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Core Discount Brands - EAGLE 20’s, PYRAMID, GRAND PRIX, LIGGETT SELECT, and EVE
|
|
$
|
267,277
|
|
|
$
|
248,370
|
|
|
$
|
500,383
|
|
|
$
|
489,901
|
|
Other Brands
|
|
27,224
|
|
|
26,463
|
|
|
50,874
|
|
|
52,048
|
|
||||
Total tobacco revenues
|
|
$
|
294,501
|
|
|
$
|
274,833
|
|
|
$
|
551,257
|
|
|
$
|
541,949
|
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
|
|
New York City
|
|
Northeast
|
|
Southeast
|
|
West
|
|
Total
|
||||||||||
Real Estate Segment Revenues
:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commission brokerage income
|
|
$
|
104,301
|
|
|
$
|
39,880
|
|
|
$
|
31,324
|
|
|
$
|
31,653
|
|
|
$
|
207,158
|
|
Development marketing
|
|
22,718
|
|
|
—
|
|
|
436
|
|
|
22
|
|
|
23,176
|
|
|||||
Property management revenue
|
|
10,048
|
|
|
170
|
|
|
—
|
|
|
—
|
|
|
10,218
|
|
|||||
Title fees
|
|
—
|
|
|
2,400
|
|
|
—
|
|
|
—
|
|
|
2,400
|
|
|||||
Total Douglas Elliman revenue
|
|
137,067
|
|
|
42,450
|
|
|
31,760
|
|
|
31,675
|
|
|
242,952
|
|
|||||
Other real estate revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
979
|
|
|
979
|
|
|||||
Total real estate revenues
|
|
$
|
137,067
|
|
|
$
|
42,450
|
|
|
$
|
31,760
|
|
|
$
|
32,654
|
|
|
$
|
243,931
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
|
New York City
|
|
Northeast
|
|
Southeast
|
|
West
|
|
Total
|
||||||||||
Real Estate Segment Revenues
:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commission brokerage income
|
|
$
|
76,175
|
|
|
$
|
43,228
|
|
|
$
|
31,909
|
|
|
$
|
28,099
|
|
|
$
|
179,411
|
|
Development marketing
|
|
10,559
|
|
|
129
|
|
|
4,788
|
|
|
49
|
|
|
15,525
|
|
|||||
Property management revenue
|
|
8,560
|
|
|
181
|
|
|
—
|
|
|
—
|
|
|
8,741
|
|
|||||
Title fees
|
|
—
|
|
|
1,922
|
|
|
—
|
|
|
—
|
|
|
1,922
|
|
|||||
Total Douglas Elliman revenue
|
|
95,294
|
|
|
45,460
|
|
|
36,697
|
|
|
28,148
|
|
|
205,599
|
|
|||||
Other real estate revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,056
|
|
|
1,056
|
|
|||||
Total real estate revenues
|
|
$
|
95,294
|
|
|
$
|
45,460
|
|
|
$
|
36,697
|
|
|
$
|
29,204
|
|
|
$
|
206,655
|
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
|
New York City
|
|
Northeast
|
|
Southeast
|
|
West
|
|
Total
|
||||||||||
Real Estate Segment Revenues
:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commission brokerage income
|
|
$
|
169,980
|
|
|
$
|
70,991
|
|
|
$
|
54,295
|
|
|
$
|
50,182
|
|
|
$
|
345,448
|
|
Development marketing
|
|
34,104
|
|
|
—
|
|
|
3,066
|
|
|
29
|
|
|
37,199
|
|
|||||
Property management revenue
|
|
18,215
|
|
|
354
|
|
|
—
|
|
|
—
|
|
|
18,569
|
|
|||||
Title fees
|
|
—
|
|
|
3,633
|
|
|
—
|
|
|
—
|
|
|
3,633
|
|
|||||
Total Douglas Elliman revenue
|
|
222,299
|
|
|
74,978
|
|
|
57,361
|
|
|
50,211
|
|
|
404,849
|
|
|||||
Other real estate revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,250
|
|
|
3,250
|
|
|||||
Total real estate revenues
|
|
$
|
222,299
|
|
|
$
|
74,978
|
|
|
$
|
57,361
|
|
|
$
|
53,461
|
|
|
$
|
408,099
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
|
New York City
|
|
Northeast
|
|
Southeast
|
|
West
|
|
Total
|
||||||||||
Real Estate Segment Revenues
:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commission brokerage income
|
|
$
|
136,583
|
|
|
$
|
75,906
|
|
|
$
|
56,307
|
|
|
$
|
49,511
|
|
|
$
|
318,307
|
|
Development marketing
|
|
21,169
|
|
|
252
|
|
|
5,081
|
|
|
243
|
|
|
26,745
|
|
|||||
Property management revenue
|
|
16,698
|
|
|
381
|
|
|
—
|
|
|
—
|
|
|
17,079
|
|
|||||
Title fees
|
|
—
|
|
|
2,911
|
|
|
—
|
|
|
—
|
|
|
2,911
|
|
|||||
Total Douglas Elliman revenue
|
|
174,450
|
|
|
79,450
|
|
|
61,388
|
|
|
49,754
|
|
|
365,042
|
|
|||||
Other real estate revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,463
|
|
|
3,463
|
|
|||||
Total real estate revenues
|
|
$
|
174,450
|
|
|
$
|
79,450
|
|
|
$
|
61,388
|
|
|
$
|
53,217
|
|
|
$
|
368,505
|
|
|
|
|
|
||||
|
June 30, 2019
|
|
January 1, 2019
|
||||
Receivables, which are included in accounts receivable - trade, net
|
$
|
2,321
|
|
|
$
|
2,050
|
|
Contract assets, net, which are included in other current assets
|
9,481
|
|
|
9,264
|
|
||
Payables, which are included in other current liabilities
|
1,373
|
|
|
1,082
|
|
||
Contract liabilities, which are included in other current liabilities
|
8,159
|
|
|
7,071
|
|
||
Contract assets, net, which are included in other assets
|
18,693
|
|
|
15,794
|
|
||
Contract liabilities, which are included in other liabilities
|
34,398
|
|
|
30,445
|
|
3
.
|
LEASES
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
June 30,
|
|
June 30,
|
||||
|
2019
|
|
2019
|
||||
Operating lease cost
|
$
|
9,630
|
|
|
$
|
18,505
|
|
Short-term lease cost
|
279
|
|
|
513
|
|
||
Variable lease cost
|
898
|
|
|
1,690
|
|
||
|
|
|
|
||||
Finance lease cost:
|
|
|
|
||||
Amortization
|
63
|
|
|
119
|
|
||
Interest on lease liabilities
|
4
|
|
|
7
|
|
||
Total lease cost
|
$
|
10,874
|
|
|
$
|
20,834
|
|
|
Six Months Ended
|
||
|
June 30,
|
||
|
2019
|
||
Cash paid for amounts included in measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
18,440
|
|
Operating cash flows from finance leases
|
7
|
|
|
Financing cash flows from finance leases
|
113
|
|
|
|
|
||
Right-of-use assets obtained in exchange for lease obligations:
|
|
||
Operating leases
|
13,061
|
|
|
Finance leases
|
123
|
|
|
June 30,
|
|
||
|
2019
|
|
||
Operating leases:
|
|
|
||
Operating lease right-of-use assets
|
$
|
135,134
|
|
|
|
|
|
||
Current operating lease liability
|
$
|
20,339
|
|
|
Non-current operating lease liability
|
139,729
|
|
|
|
Total operating lease liabilities
|
$
|
160,068
|
|
|
|
|
|
||
Finance leases:
|
|
|
||
Investments in real estate, net
|
$
|
133
|
|
(1)
|
|
|
|
||
Property, plant and equipment, at cost
|
$
|
309
|
|
|
Accumulated amortization
|
(166
|
)
|
|
|
Property and equipment, net
|
$
|
143
|
|
|
|
|
|
||
Current portion of notes payable and long-term debt
|
$
|
168
|
|
|
Notes payable, long-term debt and other obligations, less current portion
|
108
|
|
|
|
Total finance lease liabilities
|
$
|
276
|
|
|
|
|
|
||
Weighted average remaining lease term:
|
|
|
||
Operating leases
|
8.62
|
|
|
|
Finance leases
|
2.60
|
|
|
|
|
|
|
||
Weighted average discount rate:
|
|
|
||
Operating leases
|
11.05
|
%
|
|
|
Finance leases
|
8.46
|
%
|
|
(1)
|
Included in Investments in real estate, net on the condensed consolidated balance sheet are financing lease equipment, at cost of
$729
and accumulated amortization of
$596
as of
June 30, 2019
.
|
|
Operating Leases
|
|
Finance
Leases
|
||||
Year Ending December 31:
|
|
|
|
|
|
||
Remainder of 2019
|
$
|
19,389
|
|
|
$
|
118
|
|
2020
|
33,597
|
|
|
86
|
|
||
2021
|
30,914
|
|
|
33
|
|
||
2022
|
28,012
|
|
|
31
|
|
||
2023
|
26,460
|
|
|
31
|
|
||
2024
|
21,265
|
|
|
8
|
|
||
Thereafter
|
100,120
|
|
|
—
|
|
||
Total lease payments
|
259,757
|
|
|
307
|
|
||
Less imputed interest
|
(99,689
|
)
|
|
(31
|
)
|
||
Total
|
$
|
160,068
|
|
|
$
|
276
|
|
|
Lease
Commitments
|
|
Sublease
Rentals
|
|
Net
|
||||||
Year Ending December 31:
|
|
|
|
|
|
|
|
|
|||
2019
|
$
|
35,973
|
|
|
$
|
69
|
|
|
$
|
35,904
|
|
2020
|
29,917
|
|
|
—
|
|
|
29,917
|
|
|||
2021
|
27,592
|
|
|
—
|
|
|
27,592
|
|
|||
2022
|
25,185
|
|
|
—
|
|
|
25,185
|
|
|||
2023
|
23,589
|
|
|
—
|
|
|
23,589
|
|
|||
Thereafter
|
104,126
|
|
|
—
|
|
|
104,126
|
|
|||
Total
|
$
|
246,382
|
|
|
$
|
69
|
|
|
$
|
246,313
|
|
4
.
|
INVENTORIES
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Leaf tobacco
|
$
|
47,108
|
|
|
$
|
42,917
|
|
Other raw materials
|
3,782
|
|
|
3,750
|
|
||
Work-in-process
|
331
|
|
|
1,931
|
|
||
Finished goods
|
67,751
|
|
|
63,937
|
|
||
Inventories at current cost
|
118,972
|
|
|
112,535
|
|
||
LIFO adjustments
|
(22,038
|
)
|
|
(21,538
|
)
|
||
|
$
|
96,934
|
|
|
$
|
90,997
|
|
5
.
|
INVESTMENT SECURITIES AT FAIR VALUE
|
|
June 30,
2019 |
|
December 31, 2018
|
||||
Debt securities available for sale
|
$
|
88,831
|
|
|
$
|
84,367
|
|
Equity securities at fair value
|
46,269
|
|
|
47,202
|
|
||
Total investment securities at fair value
|
$
|
135,100
|
|
|
$
|
131,569
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net gains recognized on equity securities
|
$
|
2,311
|
|
|
$
|
3,236
|
|
|
$
|
7,051
|
|
|
$
|
491
|
|
Net gains (losses) recognized on debt securities available for sale
|
6
|
|
|
(5
|
)
|
|
42
|
|
|
(13
|
)
|
||||
Gross realized losses on other-than-temporary impairments
|
(2
|
)
|
|
(225
|
)
|
|
(5
|
)
|
|
(811
|
)
|
||||
Net gains (losses) recognized on investment securities
|
$
|
2,315
|
|
|
$
|
3,006
|
|
|
$
|
7,088
|
|
|
$
|
(333
|
)
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Marketable debt securities
|
$
|
87,977
|
|
|
$
|
854
|
|
|
$
|
—
|
|
|
$
|
88,831
|
|
Total debt securities available for sale
|
$
|
87,977
|
|
|
$
|
854
|
|
|
$
|
—
|
|
|
$
|
88,831
|
|
Investment Type:
|
Fair Value
|
|
Under 1 Year
|
|
1 Year up to 5 Years
|
|
More than 5 Years
|
||||||||
U.S. Government securities
|
$
|
19,535
|
|
|
$
|
7,797
|
|
|
$
|
11,738
|
|
|
$
|
—
|
|
Corporate securities
|
47,427
|
|
|
13,341
|
|
|
34,086
|
|
|
—
|
|
||||
U.S. mortgage-backed securities
|
8,623
|
|
|
4,026
|
|
|
4,597
|
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
394
|
|
|
29
|
|
|
365
|
|
|
—
|
|
||||
Commercial paper
|
9,026
|
|
|
9,026
|
|
|
—
|
|
|
—
|
|
||||
Index-linked U.S. bonds
|
2,664
|
|
|
2,664
|
|
|
—
|
|
|
—
|
|
||||
Foreign fixed-income securities
|
1,162
|
|
|
654
|
|
|
508
|
|
|
—
|
|
||||
Total debt securities available for sale by maturity dates
|
$
|
88,831
|
|
|
$
|
37,537
|
|
|
$
|
51,294
|
|
|
$
|
—
|
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Marketable debt securities
|
$
|
84,199
|
|
|
$
|
168
|
|
|
$
|
—
|
|
|
$
|
84,367
|
|
Total debt securities available for sale
|
$
|
84,199
|
|
|
$
|
168
|
|
|
$
|
—
|
|
|
$
|
84,367
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross realized gains on sales
|
$
|
9
|
|
|
$
|
2
|
|
|
$
|
47
|
|
|
$
|
2
|
|
Gross realized losses on sales
|
(3
|
)
|
|
(7
|
)
|
|
(5
|
)
|
|
(15
|
)
|
||||
Net gains (losses) recognized on debt securities available for sale
|
$
|
6
|
|
|
$
|
(5
|
)
|
|
$
|
42
|
|
|
$
|
(13
|
)
|
|
|
|
|
|
|
|
|
||||||||
Gross realized losses on other-than-temporary impairments
|
$
|
(2
|
)
|
|
$
|
(225
|
)
|
|
$
|
(5
|
)
|
|
$
|
(811
|
)
|
|
|
|
|
|
|
|
|
|
June 30,
2019 |
|
December 31, 2018
|
||||
Marketable equity securities
|
$
|
24,257
|
|
|
$
|
26,010
|
|
Mutual funds invested in fixed income securities
|
22,012
|
|
|
21,192
|
|
||
Total equity securities at fair value
|
$
|
46,269
|
|
|
$
|
47,202
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net gains recognized on equity securities
(1)
|
$
|
2,311
|
|
|
$
|
3,236
|
|
|
$
|
7,051
|
|
|
$
|
491
|
|
Less: Net gains recognized on equity securities sold
(2)
|
278
|
|
|
53
|
|
|
410
|
|
|
183
|
|
||||
Net unrealized gains recognized on equity securities still held at the reporting date
|
$
|
2,033
|
|
|
$
|
3,183
|
|
|
$
|
6,641
|
|
|
$
|
308
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes
$1,911
and
$1,505
of net gains recognized on equity securities at fair value that qualify for the net asset value (“NAV”) practical expedient during the three months ended
June 30, 2019
and
2018
, respectively, and
$5,470
and
$3,236
of net gains recognized on equity securities at fair value that qualify for the NAV practical expedient during the
six months ended June 30, 2019
and
2018
, respectively. These equity securities are included in the “Long-term investments” line item on the condensed consolidated balance sheet and are further discussed in Note
6
.
|
(2)
|
Includes
$215
and
$649
of gains recognized on sales of equity securities at fair value that qualify for the NAV practical expedient during the three and
six months ended June 30, 2019
. These equity securities are included in the “Long-term investments” line item on the condensed consolidated balance sheet and are further discussed in Note
6
.
|
6
.
|
LONG-TERM INVESTMENTS
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Equity securities at fair value that qualify for the NAV practical expedient
|
$
|
53,175
|
|
|
$
|
54,628
|
|
Equity-method investments
|
10,639
|
|
|
11,631
|
|
||
|
$
|
63,814
|
|
|
$
|
66,259
|
|
|
June 30,
2019 |
|
December 31, 2018
|
||||
Indian Creek Investors LP (“Indian Creek”)
|
$
|
719
|
|
|
$
|
1,167
|
|
Boyar Value Fund (“Boyar”)
|
9,444
|
|
|
8,384
|
|
||
Ladenburg Thalmann Financial Services Inc. (“LTS”)
|
476
|
|
|
2,080
|
|
||
Castle Brands, Inc. (“Castle”)
|
—
|
|
|
—
|
|
||
|
$
|
10,639
|
|
|
$
|
11,631
|
|
7
.
|
NEW VALLEY LLC
|
|
Range of Ownership
(1)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Condominium and Mixed Use Development:
|
|
|
|
|
|
||||
New York City SMSA
|
3.1% - 49.5%
|
|
$
|
84,593
|
|
|
$
|
65,007
|
|
All other U.S. areas
|
15.0% - 48.5%
|
|
28,903
|
|
|
31,392
|
|
||
|
|
|
113,496
|
|
|
96,399
|
|
||
Hotels:
|
|
|
|
|
|
||||
New York City SMSA
|
5.2% - 18.4%
|
|
2,615
|
|
|
15,782
|
|
||
International
|
49.0%
|
|
1,970
|
|
|
2,334
|
|
||
|
|
|
4,585
|
|
|
18,116
|
|
||
Commercial:
|
|
|
|
|
|
||||
New York City SMSA
|
49.0%
|
|
2,121
|
|
|
1,867
|
|
||
All other U.S. areas
|
1.6%
|
|
7,354
|
|
|
7,053
|
|
||
|
|
|
9,475
|
|
|
8,920
|
|
||
|
|
|
|
|
|
||||
Other:
|
15.0% - 50.0%
|
|
17,210
|
|
|
17,670
|
|
||
Investments in real estate ventures
|
|
|
$
|
144,766
|
|
|
$
|
141,105
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Condominium and Mixed Use Development:
|
|
|
|
||||
New York City SMSA
|
$
|
21,537
|
|
|
$
|
533
|
|
|
21,537
|
|
|
533
|
|
||
Hotels:
|
|
|
|
||||
New York City SMSA
|
172
|
|
|
167
|
|
||
|
172
|
|
|
167
|
|
||
|
|
|
|
||||
Other:
|
199
|
|
|
3,643
|
|
||
Total contributions
|
$
|
21,908
|
|
|
$
|
4,343
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Condominium and Mixed Use Development:
|
|
|
|
||||
New York City SMSA
|
$
|
571
|
|
|
$
|
34,490
|
|
All other U.S. areas
|
1,279
|
|
|
—
|
|
||
|
1,850
|
|
|
34,490
|
|
||
Apartment Buildings:
|
|
|
|
||||
All other U.S. areas
|
3
|
|
|
201
|
|
||
|
3
|
|
|
201
|
|
||
Hotels:
|
|
|
|
||||
New York City SMSA
|
21,572
|
|
|
—
|
|
||
|
21,572
|
|
|
—
|
|
||
Commercial:
|
|
|
|
||||
New York City SMSA
|
9
|
|
|
—
|
|
||
All other U.S. areas
|
129
|
|
|
341
|
|
||
|
138
|
|
|
341
|
|
||
|
|
|
|
||||
Other
|
1,697
|
|
|
644
|
|
||
Total distributions
|
$
|
25,260
|
|
|
$
|
35,676
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Condominium and Mixed Use Development:
|
|
|
|
|
|
|
|
||||||||
New York City SMSA
|
$
|
(1,120
|
)
|
|
$
|
(152
|
)
|
|
$
|
(3,226
|
)
|
|
$
|
(3,613
|
)
|
All other U.S. areas
|
(2,258
|
)
|
|
(321
|
)
|
|
(2,366
|
)
|
|
(826
|
)
|
||||
|
(3,378
|
)
|
|
(473
|
)
|
|
(5,592
|
)
|
|
(4,439
|
)
|
||||
Apartment Buildings:
|
|
|
|
|
|
|
|
||||||||
All other U.S. areas
|
3
|
|
|
(1,717
|
)
|
|
3
|
|
|
(3,297
|
)
|
||||
|
3
|
|
|
(1,717
|
)
|
|
3
|
|
|
(3,297
|
)
|
||||
Hotels:
|
|
|
|
|
|
|
|
||||||||
New York City SMSA
|
8,942
|
|
|
(636
|
)
|
|
8,234
|
|
|
(1,450
|
)
|
||||
International
|
122
|
|
|
(143
|
)
|
|
(364
|
)
|
|
(568
|
)
|
||||
|
9,064
|
|
|
(779
|
)
|
|
7,870
|
|
|
(2,018
|
)
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
New York City SMSA
|
384
|
|
|
(121
|
)
|
|
263
|
|
|
(388
|
)
|
||||
All other U.S. areas
|
79
|
|
|
913
|
|
|
371
|
|
|
1,143
|
|
||||
|
463
|
|
|
792
|
|
|
634
|
|
|
755
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other:
|
239
|
|
|
65
|
|
|
1,037
|
|
|
327
|
|
||||
Equity in earnings (losses) from real estate ventures
|
$
|
6,391
|
|
|
$
|
(2,112
|
)
|
|
$
|
3,952
|
|
|
$
|
(8,672
|
)
|
|
June 30, 2019
|
||
Condominium and Mixed Use Development:
|
|
||
New York City SMSA
|
$
|
89,515
|
|
All other U.S. areas
|
41,403
|
|
|
|
130,918
|
|
|
Hotels:
|
|
||
New York City SMSA
|
2,615
|
|
|
International
|
1,970
|
|
|
|
4,585
|
|
|
Commercial:
|
|
||
New York City SMSA
|
2,121
|
|
|
All other U.S. areas
|
7,354
|
|
|
|
9,475
|
|
|
|
|
||
Other:
|
31,988
|
|
|
Total maximum exposure to loss
|
$
|
176,966
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Income Statement
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
2
|
|
|
$
|
12
|
|
|
$
|
3
|
|
|
$
|
21
|
|
Other expenses
|
2,013
|
|
|
143,723
|
|
|
2,755
|
|
|
144,478
|
|
||||
Loss from continuing operations
|
$
|
(2,011
|
)
|
|
$
|
(143,711
|
)
|
|
$
|
(2,752
|
)
|
|
$
|
(144,457
|
)
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Escena, net
|
$
|
10,009
|
|
|
$
|
10,170
|
|
Sagaponack
|
17,203
|
|
|
16,050
|
|
||
Investments in real estate, net
|
$
|
27,212
|
|
|
$
|
26,220
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Land and land improvements
|
$
|
8,910
|
|
|
$
|
8,910
|
|
Building and building improvements
|
1,900
|
|
|
1,900
|
|
||
Other
|
1,608
|
|
|
2,162
|
|
||
|
12,418
|
|
|
12,972
|
|
||
Less accumulated depreciation
|
(2,409
|
)
|
|
(2,802
|
)
|
||
|
$
|
10,009
|
|
|
$
|
10,170
|
|
8
.
|
NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Vector:
|
|
|
|
||||
6.125% Senior Secured Notes due 2025
|
$
|
850,000
|
|
|
$
|
850,000
|
|
10.5% Senior Notes due 2026
|
325,000
|
|
|
325,000
|
|
||
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $0 and $3,359*
|
—
|
|
|
226,641
|
|
||
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $18,852 and $29,465*
|
213,148
|
|
|
202,535
|
|
||
Liggett:
|
|
|
|
||||
Revolving credit facility
|
31,026
|
|
|
28,381
|
|
||
Term loan under credit facility
|
2,262
|
|
|
2,409
|
|
||
Equipment loans
|
545
|
|
|
1,039
|
|
||
Other
|
30,264
|
|
|
30,440
|
|
||
Notes payable, long-term debt and other obligations
|
1,452,245
|
|
|
1,666,445
|
|
||
Less:
|
|
|
|
||||
Debt issuance costs
|
(21,435
|
)
|
|
(23,614
|
)
|
||
Total notes payable, long-term debt and other obligations
|
1,430,810
|
|
|
1,642,831
|
|
||
Less:
|
|
|
|
||||
Current maturities
|
(250,659
|
)
|
|
(256,134
|
)
|
||
Amount due after one year
|
$
|
1,180,151
|
|
|
$
|
1,386,697
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Amortization of debt discount, net
|
$
|
5,447
|
|
|
$
|
20,386
|
|
|
$
|
13,972
|
|
|
$
|
38,579
|
|
Amortization of debt issuance costs
|
1,053
|
|
|
2,914
|
|
|
2,238
|
|
|
5,625
|
|
||||
|
$
|
6,500
|
|
|
$
|
23,300
|
|
|
$
|
16,210
|
|
|
$
|
44,204
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
||||||||
|
Value
|
|
Value
|
|
Value
|
|
Value
|
||||||||
Senior Notes
|
$
|
1,175,000
|
|
|
$
|
1,094,888
|
|
|
$
|
1,175,000
|
|
|
$
|
1,034,500
|
|
Variable Interest Senior Convertible Debt
|
213,148
|
|
|
239,090
|
|
|
429,176
|
|
|
468,704
|
|
||||
Liggett and other
|
64,097
|
|
|
64,105
|
|
|
62,269
|
|
|
62,255
|
|
||||
Notes payable and long-term debt
|
$
|
1,452,245
|
|
(1)
|
$
|
1,398,083
|
|
|
$
|
1,666,445
|
|
(1)
|
$
|
1,565,459
|
|
9
.
|
CONTINGENCIES
|
State
|
|
Number
of Cases
|
Florida
|
|
24
|
Illinois
|
|
5
|
New York
|
|
2
|
Louisiana
|
|
2
|
West Virginia
|
|
2
|
Ohio
|
|
1
|
•
|
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, 2019
|
$
|
36,561
|
|
|
$
|
310
|
|
|
$
|
36,871
|
|
|
$
|
16,383
|
|
|
$
|
21,794
|
|
|
$
|
38,177
|
|
Expenses
|
80,128
|
|
|
655
|
|
|
80,783
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Change in MSA obligations capitalized as inventory
|
1,813
|
|
|
—
|
|
|
1,813
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Payments
|
(31,959
|
)
|
|
(355
|
)
|
|
(32,314
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Reclassification to/(from) non-current liabilities
|
(892
|
)
|
|
3,338
|
|
|
2,446
|
|
|
892
|
|
|
(3,338
|
)
|
|
(2,446
|
)
|
||||||
Interest on withholding
|
—
|
|
|
95
|
|
|
95
|
|
|
—
|
|
|
1,076
|
|
|
1,076
|
|
||||||
Balance as of June 30, 2019
|
$
|
85,651
|
|
|
$
|
4,043
|
|
|
$
|
89,694
|
|
|
$
|
17,275
|
|
|
$
|
19,532
|
|
|
$
|
36,807
|
|
|
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, 2018
|
$
|
12,385
|
|
|
$
|
260
|
|
|
$
|
12,645
|
|
|
$
|
21,479
|
|
|
$
|
19,840
|
|
|
$
|
41,319
|
|
Expenses
|
79,739
|
|
|
525
|
|
|
80,264
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
NPM Settlement adjustment
|
(595
|
)
|
|
—
|
|
|
(595
|
)
|
|
(5,703
|
)
|
|
—
|
|
|
(5,703
|
)
|
||||||
Change in MSA obligations capitalized as inventory
|
(275
|
)
|
|
—
|
|
|
(275
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Payments
|
(9,463
|
)
|
|
(250
|
)
|
|
(9,713
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Reclassification to/(from) non-current liabilities
|
(647
|
)
|
|
218
|
|
|
(429
|
)
|
|
647
|
|
|
(218
|
)
|
|
429
|
|
||||||
Interest on withholding
|
—
|
|
|
19
|
|
|
19
|
|
|
—
|
|
|
1,048
|
|
|
1,048
|
|
||||||
Balance as of June 30, 2018
|
$
|
81,144
|
|
|
$
|
772
|
|
|
$
|
81,916
|
|
|
$
|
16,423
|
|
|
$
|
20,670
|
|
|
$
|
37,093
|
|
10
.
|
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,
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Service cost — benefits earned during the period
|
$
|
134
|
|
|
$
|
147
|
|
|
$
|
267
|
|
|
$
|
294
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Interest cost on projected benefit obligation
|
1,215
|
|
|
1,124
|
|
|
2,430
|
|
|
2,246
|
|
|
87
|
|
|
82
|
|
|
173
|
|
|
164
|
|
||||||||
Expected return on assets
|
(1,219
|
)
|
|
(1,393
|
)
|
|
(2,437
|
)
|
|
(2,786
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||||
Amortization of net loss (gain)
|
501
|
|
|
451
|
|
|
1,002
|
|
|
903
|
|
|
(10
|
)
|
|
(10
|
)
|
|
(54
|
)
|
|
(20
|
)
|
||||||||
Net expense
|
$
|
631
|
|
|
$
|
329
|
|
|
$
|
1,262
|
|
|
$
|
657
|
|
|
$
|
79
|
|
|
$
|
72
|
|
|
$
|
122
|
|
|
$
|
145
|
|
11
.
|
INCOME TAXES
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Income before provision for income taxes
|
$
|
56,766
|
|
|
$
|
31,756
|
|
|
$
|
78,548
|
|
|
$
|
37,368
|
|
Income tax expense using estimated annual effective income tax rate
|
17,566
|
|
|
14,209
|
|
|
24,319
|
|
|
16,720
|
|
||||
Changes in effective tax rates
|
(110
|
)
|
|
455
|
|
|
—
|
|
|
—
|
|
||||
Change in estimate for the impact of Tax Cuts and Jobs Act of 2017
|
—
|
|
|
(1,809
|
)
|
|
—
|
|
|
(1,809
|
)
|
||||
Impact of discrete items, net
|
3
|
|
|
(95
|
)
|
|
(111
|
)
|
|
(203
|
)
|
||||
Income tax expense
|
$
|
17,459
|
|
|
$
|
12,760
|
|
|
$
|
24,208
|
|
|
$
|
14,708
|
|
12
.
|
INVESTMENTS AND FAIR VALUE MEASUREMENTS
|
|
|
Fair Value Measurements as of June 30, 2019
|
|
|
||||||||||||||
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)
|
|
$
|
196,671
|
|
|
$
|
196,671
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial paper
(1)
|
|
43,602
|
|
|
—
|
|
|
43,602
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
(2)
|
|
2,179
|
|
|
—
|
|
|
2,179
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Money market funds securing legal bonds
(2)
|
|
535
|
|
|
535
|
|
|
—
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investment securities at fair value
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity securities at fair value
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketable equity securities
|
|
24,257
|
|
|
24,257
|
|
|
—
|
|
|
—
|
|
|
|
||||
Mutual funds invested in fixed-income securities
|
|
22,012
|
|
|
22,012
|
|
|
—
|
|
|
—
|
|
|
|
||||
Total equity securities at fair value
|
|
46,269
|
|
|
46,269
|
|
|
—
|
|
|
—
|
|
|
|
||||
Debt securities available for sale
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government securities
|
|
19,535
|
|
|
—
|
|
|
19,535
|
|
|
—
|
|
|
|
||||
Corporate securities
|
|
47,427
|
|
|
—
|
|
|
47,427
|
|
|
—
|
|
|
|
||||
U.S. government and federal agency
|
|
8,623
|
|
|
—
|
|
|
8,623
|
|
|
—
|
|
|
|
||||
Commercial mortgage-backed securities
|
|
394
|
|
|
—
|
|
|
394
|
|
|
—
|
|
|
|
||||
Commercial paper
|
|
9,026
|
|
|
—
|
|
|
9,026
|
|
|
—
|
|
|
|
||||
Index-linked U.S. bonds
|
|
2,664
|
|
|
—
|
|
|
2,664
|
|
|
—
|
|
|
|
||||
Foreign fixed-income securities
|
|
1,162
|
|
|
—
|
|
|
1,162
|
|
|
—
|
|
|
|
||||
Total debt securities available for sale
|
|
88,831
|
|
|
—
|
|
|
88,831
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total investment securities at fair value
|
|
135,100
|
|
|
46,269
|
|
|
88,831
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Long-term investments
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity securities at fair value that qualify for the NAV practical expedient
(3)
|
|
53,175
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||
Total
|
|
$
|
431,262
|
|
|
$
|
243,475
|
|
|
$
|
134,612
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fair value of contingent liability
|
|
$
|
6,195
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,195
|
|
|
|
Fair value of derivatives embedded within convertible debt
|
|
17,287
|
|
|
—
|
|
|
—
|
|
|
17,287
|
|
|
|
||||
Total
|
|
$
|
23,482
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,482
|
|
|
|
(1)
|
Amounts included in Cash and cash equivalents on the condensed consolidated balance sheet, except for
$5,086
that is included in Other current assets and
$3,910
that is included in Other assets.
|
(2)
|
Amounts included in current restricted assets and non-current restricted assets on the condensed consolidated balance sheet.
|
(3)
|
In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy.
|
|
|
Fair Value Measurements as of December 31, 2018
|
|
|
||||||||||||||
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)
|
|
$
|
448,560
|
|
|
$
|
448,560
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial paper
(1)
|
|
46,062
|
|
|
—
|
|
|
46,062
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
(2)
|
|
2,251
|
|
|
—
|
|
|
2,251
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Money market funds securing legal bonds
(2)
|
|
535
|
|
|
535
|
|
|
—
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investment securities at fair value
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity securities at fair value
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketable equity securities
|
|
26,010
|
|
|
26,010
|
|
|
—
|
|
|
—
|
|
|
|
||||
Mutual funds invested in fixed-income securities
|
|
21,192
|
|
|
21,192
|
|
|
—
|
|
|
—
|
|
|
|
||||
Total equity securities at fair value
|
|
47,202
|
|
|
47,202
|
|
|
—
|
|
|
—
|
|
|
|
||||
Debt securities available for sale
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government securities
|
|
28,514
|
|
|
—
|
|
|
28,514
|
|
|
—
|
|
|
|
||||
Corporate securities
|
|
41,733
|
|
|
—
|
|
|
41,733
|
|
|
—
|
|
|
|
||||
U.S. government and federal agency
|
|
4,369
|
|
|
—
|
|
|
4,369
|
|
|
—
|
|
|
|
||||
Commercial mortgage-backed securities
|
|
401
|
|
|
—
|
|
|
401
|
|
|
—
|
|
|
|
||||
Commercial paper
|
|
5,870
|
|
|
—
|
|
|
5,870
|
|
|
—
|
|
|
|
||||
Index-linked U.S. bonds
|
|
2,330
|
|
|
—
|
|
|
2,330
|
|
|
—
|
|
|
|
||||
Foreign fixed-income securities
|
|
1,150
|
|
|
—
|
|
|
1,150
|
|
|
—
|
|
|
|
||||
Total debt securities available for sale
|
|
84,367
|
|
|
—
|
|
|
84,367
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total investment securities at fair value
|
|
131,569
|
|
|
47,202
|
|
|
84,367
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Long-term investments
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity securities at fair value that qualify for the NAV practical expedient
(3)
|
|
54,628
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||
Total
|
|
$
|
683,605
|
|
|
$
|
496,297
|
|
|
$
|
132,680
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fair value of contingent liability
|
|
$
|
6,304
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,304
|
|
|
|
Fair value of derivatives embedded within convertible debt
|
|
31,424
|
|
|
—
|
|
|
—
|
|
|
31,424
|
|
|
|
||||
Total
|
|
$
|
37,728
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37,728
|
|
|
|
(1)
|
Amounts included in Cash and cash equivalents on the condensed consolidated balance sheet, except for
$2,570
that is included in current restricted assets and
$3,910
that is included in non-current restricted assets.
|
(2)
|
Amounts included in current restricted assets and non-current restricted assets on the condensed consolidated balance sheet.
|
(3)
|
In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy.
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||
|
|
Fair Value at
|
|
|
|
|
|
|
||||
|
|
June 30,
2019 |
|
Valuation Technique
|
|
Unobservable Input
|
|
Range (Actual)
|
||||
|
|
|
|
|
|
|
|
|
||||
Fair value of derivatives embedded within convertible debt
|
|
$
|
17,287
|
|
|
Discounted cash flow
|
|
Assumed annual stock dividend
|
|
5
|
%
|
|
|
|
|
|
|
|
Assumed annual cash dividend
|
|
$
|
1.60
|
|
||
|
|
|
|
|
|
Stock price
|
|
$
|
9.75
|
|
||
|
|
|
|
|
|
Convertible trading price (as a percentage of par value)
|
|
103.06
|
%
|
|||
|
|
|
|
|
|
Volatility
|
|
33.11
|
%
|
|||
|
|
|
|
|
|
Risk-free rate
|
|
Term structure of US Treasury Securities
|
||||
|
|
|
|
|
|
Implied credit spread
|
|
5.25% - 7.25% (6.25%)
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Fair value of contingent liability
|
|
$
|
6,195
|
|
|
Monte Carlo simulation model
|
|
Estimated fair value of the Douglas Elliman reporting unit
|
|
$
|
320,000
|
|
|
|
|
|
|
|
Risk-free rate for a 3.5 year term
|
|
1.71
|
%
|
|||
|
|
|
|
|
|
Leverage-adjusted equity volatility of peer firms
|
|
26.24
|
%
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||
|
|
Fair Value at
|
|
|
|
|
|
|
||||
|
|
December 31,
2018 |
|
Valuation Technique
|
|
Unobservable Input
|
|
Range (Actual)
|
||||
|
|
|
|
|
|
|
|
|
||||
Fair value of derivatives embedded within convertible debt
|
|
$
|
31,424
|
|
|
Discounted cash flow
|
|
Assumed annual stock dividend
|
|
5
|
%
|
|
|
|
|
|
|
|
Assumed annual cash dividend
|
|
$
|
1.60
|
|
||
|
|
|
|
|
|
Stock price
|
|
$
|
9.73
|
|
||
|
|
|
|
|
|
Convertible trading price (as a percentage of par value)
|
|
100.31
|
%
|
|||
|
|
|
|
|
|
Volatility
|
|
20.39
|
%
|
|||
|
|
|
|
|
|
Risk-free rate
|
|
Term structure of US Treasury Securities
|
||||
|
|
|
|
|
|
Implied credit spread
|
|
8.0% - 9.0% (8.5%)
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Fair value of contingent liability
|
|
$
|
6,304
|
|
|
Monte Carlo simulation model
|
|
Estimated fair value of the Douglas Elliman reporting unit
|
|
$
|
320,000
|
|
|
|
|
|
|
|
Risk-free rate for a 4-year term
|
|
2.45
|
%
|
|||
|
|
|
|
|
|
Leverage-adjusted equity volatility of peer firms
|
|
30.22
|
%
|
13
.
|
SEGMENT INFORMATION
|
|
|
|
Real
|
|
Corporate
|
|
|
||||||||
|
Tobacco
|
|
Estate
|
|
and Other
|
|
Total
|
||||||||
Three months ended June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
294,501
|
|
|
$
|
243,931
|
|
|
$
|
—
|
|
|
$
|
538,432
|
|
Operating income (loss)
|
68,651
|
|
(1)
|
14,453
|
|
|
(6,860
|
)
|
|
76,244
|
|
||||
Equity in earnings from real estate ventures
|
—
|
|
|
6,391
|
|
|
—
|
|
|
6,391
|
|
||||
Depreciation and amortization
|
1,950
|
|
|
2,024
|
|
|
250
|
|
|
4,224
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Three months ended June 30, 2018
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
274,833
|
|
|
$
|
206,655
|
|
|
$
|
—
|
|
|
$
|
481,488
|
|
Operating income (loss)
|
62,515
|
|
(2)
|
5,867
|
|
|
(6,521
|
)
|
|
61,861
|
|
||||
Equity in losses from real estate ventures
|
—
|
|
|
(2,112
|
)
|
|
—
|
|
|
(2,112
|
)
|
||||
Depreciation and amortization
|
2,075
|
|
|
2,418
|
|
|
256
|
|
|
4,749
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Six months ended June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
551,257
|
|
|
$
|
408,099
|
|
|
$
|
—
|
|
|
$
|
959,356
|
|
Operating income (loss)
|
128,795
|
|
(3)
|
4,044
|
|
|
(14,005
|
)
|
|
118,834
|
|
||||
Equity in earnings from real estate ventures
|
—
|
|
|
3,952
|
|
|
—
|
|
|
3,952
|
|
||||
Depreciation and amortization
|
3,907
|
|
|
4,525
|
|
|
500
|
|
|
8,932
|
|
||||
Capital expenditures
|
2,753
|
|
|
3,567
|
|
|
—
|
|
|
6,320
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||
Six months ended June 30, 2018
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
541,949
|
|
|
$
|
368,505
|
|
|
$
|
—
|
|
|
$
|
910,454
|
|
Operating income (loss)
|
125,926
|
|
(4)
|
(2,893
|
)
|
(5)
|
(13,088
|
)
|
|
109,945
|
|
||||
Equity in losses from real estate ventures
|
—
|
|
|
(8,672
|
)
|
|
—
|
|
|
(8,672
|
)
|
||||
Depreciation and amortization
|
4,112
|
|
|
4,707
|
|
|
517
|
|
|
9,336
|
|
||||
Capital expenditures
|
2,072
|
|
|
6,529
|
|
|
15
|
|
|
8,616
|
|
||||
|
|
|
|
|
|
|
|
(1)
|
Operating income includes
$655
of litigation settlement and judgment expense.
|
(2)
|
Operating income includes
$2,808
of income from a settlement of a long-standing dispute related to the Master Settlement Agreement, and
$525
of litigation settlement and judgment expense.
|
(4)
|
Operating income includes
$6,298
of income from a settlement of a long-standing dispute related to the Master Settlement Agreement, and
$525
of litigation settlement and judgment expense.
|
(5)
|
Operating income includes
$2,469
of litigation settlement and judgment income.
|
|
|
|
June 30, 2019
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
174,786
|
|
|
$
|
69,154
|
|
|
$
|
79,921
|
|
|
$
|
—
|
|
|
$
|
323,861
|
|
Investment securities at fair value
|
135,100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
135,100
|
|
|||||
Accounts receivable - trade, net
|
—
|
|
|
13,616
|
|
|
30,731
|
|
|
—
|
|
|
44,347
|
|
|||||
Intercompany receivables
|
41,312
|
|
|
—
|
|
|
—
|
|
|
(41,312
|
)
|
|
—
|
|
|||||
Inventories
|
—
|
|
|
96,934
|
|
|
—
|
|
|
—
|
|
|
96,934
|
|
|||||
Income taxes receivable, net
|
—
|
|
|
—
|
|
|
387
|
|
|
(387
|
)
|
|
—
|
|
|||||
Other current assets
|
4,788
|
|
|
6,532
|
|
|
26,931
|
|
|
—
|
|
|
38,251
|
|
|||||
Total current assets
|
355,986
|
|
|
186,236
|
|
|
137,970
|
|
|
(41,699
|
)
|
|
638,493
|
|
|||||
Property, plant and equipment, net
|
404
|
|
|
36,799
|
|
|
47,059
|
|
|
—
|
|
|
84,262
|
|
|||||
Investments in real estate, net
|
—
|
|
|
—
|
|
|
27,212
|
|
|
—
|
|
|
27,212
|
|
|||||
Long-term investments (of which $53,175 were carried at fair value)
|
63,814
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63,814
|
|
|||||
Investments in real estate ventures
|
—
|
|
|
—
|
|
|
144,766
|
|
|
—
|
|
|
144,766
|
|
|||||
Operating lease right of use assets
|
7,623
|
|
|
5,215
|
|
|
122,296
|
|
|
—
|
|
|
135,134
|
|
|||||
Investments in consolidated subsidiaries
|
429,782
|
|
|
245,329
|
|
|
—
|
|
|
(675,111
|
)
|
|
—
|
|
|||||
Goodwill and other intangible assets, net
|
—
|
|
|
107,511
|
|
|
158,571
|
|
|
—
|
|
|
266,082
|
|
|||||
Other assets
|
15,016
|
|
|
38,966
|
|
|
41,415
|
|
|
—
|
|
|
95,397
|
|
|||||
Total assets
|
$
|
872,625
|
|
|
$
|
620,056
|
|
|
$
|
679,289
|
|
|
$
|
(716,810
|
)
|
|
$
|
1,455,160
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of notes payable and long-term debt
|
$
|
211,712
|
|
|
$
|
38,690
|
|
|
$
|
5,257
|
|
|
$
|
(5,000
|
)
|
|
$
|
250,659
|
|
Current portion of fair value of derivatives embedded within convertible debt
|
17,287
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,287
|
|
|||||
Intercompany payables
|
—
|
|
|
197
|
|
|
41,115
|
|
|
(41,312
|
)
|
|
—
|
|
|||||
Income taxes payable, net
|
6,008
|
|
|
2,724
|
|
|
—
|
|
|
(387
|
)
|
|
8,345
|
|
|||||
Current payments due under the Master Settlement Agreement
|
—
|
|
|
85,651
|
|
|
—
|
|
|
—
|
|
|
85,651
|
|
|||||
Current operating lease liability
|
1,020
|
|
|
1,918
|
|
|
17,401
|
|
|
—
|
|
|
20,339
|
|
|||||
Other current liabilities
|
46,463
|
|
|
64,050
|
|
|
65,721
|
|
|
(448
|
)
|
|
175,786
|
|
|||||
Total current liabilities
|
282,490
|
|
|
193,230
|
|
|
129,494
|
|
|
(47,147
|
)
|
|
558,067
|
|
|||||
Notes payable, long-term debt and other obligations, less current portion
|
1,155,001
|
|
|
25,143
|
|
|
25,007
|
|
|
(25,000
|
)
|
|
1,180,151
|
|
|||||
Non-current employee benefits
|
46,621
|
|
|
15,480
|
|
|
—
|
|
|
—
|
|
|
62,101
|
|
|||||
Deferred income taxes, net
|
(12,241
|
)
|
|
20,507
|
|
|
33,199
|
|
|
—
|
|
|
41,465
|
|
|||||
Non-current operating lease liability
|
7,541
|
|
|
3,901
|
|
|
128,287
|
|
|
—
|
|
|
139,729
|
|
|||||
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement
|
397
|
|
|
36,806
|
|
|
43,140
|
|
|
—
|
|
|
80,343
|
|
|||||
Total liabilities
|
1,479,809
|
|
|
295,067
|
|
|
359,127
|
|
|
(72,147
|
)
|
|
2,061,856
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stockholders' (deficiency) equity attributed to Vector Group Ltd.
|
(607,184
|
)
|
|
324,989
|
|
|
319,674
|
|
|
(644,663
|
)
|
|
(607,184
|
)
|
|||||
Non-controlling interest
|
—
|
|
|
—
|
|
|
488
|
|
|
—
|
|
|
488
|
|
|||||
Total stockholders' (deficiency) equity
|
(607,184
|
)
|
|
324,989
|
|
|
320,162
|
|
|
(644,663
|
)
|
|
(606,696
|
)
|
|||||
Total liabilities and stockholders' deficiency
|
$
|
872,625
|
|
|
$
|
620,056
|
|
|
$
|
679,289
|
|
|
$
|
(716,810
|
)
|
|
$
|
1,455,160
|
|
|
|
|
December 31, 2018
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
474,880
|
|
|
$
|
23,308
|
|
|
$
|
86,393
|
|
|
$
|
—
|
|
|
$
|
584,581
|
|
Investment securities at fair value
|
131,569
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
131,569
|
|
|||||
Accounts receivable - trade, net
|
—
|
|
|
15,440
|
|
|
18,806
|
|
|
—
|
|
|
34,246
|
|
|||||
Intercompany receivables
|
38,391
|
|
|
—
|
|
|
—
|
|
|
(38,391
|
)
|
|
—
|
|
|||||
Inventories
|
—
|
|
|
90,997
|
|
|
—
|
|
|
—
|
|
|
90,997
|
|
|||||
Income taxes receivable, net
|
—
|
|
|
—
|
|
|
1,268
|
|
|
(1,268
|
)
|
|
—
|
|
|||||
Other current assets
|
1,500
|
|
|
7,599
|
|
|
21,729
|
|
|
—
|
|
|
30,828
|
|
|||||
Total current assets
|
646,340
|
|
|
137,344
|
|
|
128,196
|
|
|
(39,659
|
)
|
|
872,221
|
|
|||||
Property, plant and equipment, net
|
506
|
|
|
38,562
|
|
|
47,668
|
|
|
—
|
|
|
86,736
|
|
|||||
Investments in real estate, net
|
—
|
|
|
—
|
|
|
26,220
|
|
|
—
|
|
|
26,220
|
|
|||||
Long-term investments (of which $54,628 were carried at fair value)
|
66,259
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,259
|
|
|||||
Investments in real estate ventures
|
—
|
|
|
—
|
|
|
141,105
|
|
|
—
|
|
|
141,105
|
|
|||||
Investments in consolidated subsidiaries
|
431,288
|
|
|
252,113
|
|
|
—
|
|
|
(683,401
|
)
|
|
—
|
|
|||||
Goodwill and other intangible assets, net
|
—
|
|
|
107,511
|
|
|
159,100
|
|
|
—
|
|
|
266,611
|
|
|||||
Other assets
|
14,616
|
|
|
38,154
|
|
|
37,582
|
|
|
—
|
|
|
90,352
|
|
|||||
Total assets
|
$
|
1,159,009
|
|
|
$
|
573,684
|
|
|
$
|
539,871
|
|
|
$
|
(723,060
|
)
|
|
$
|
1,549,504
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of notes payable and long-term debt
|
$
|
226,343
|
|
|
$
|
29,480
|
|
|
$
|
311
|
|
|
$
|
—
|
|
|
$
|
256,134
|
|
Current portion of fair value of derivatives embedded within convertible debt
|
6,635
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,635
|
|
|||||
Current portion of employee benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Intercompany payables
|
—
|
|
|
479
|
|
|
37,912
|
|
|
(38,391
|
)
|
|
—
|
|
|||||
Income taxes payable, net
|
5,257
|
|
|
1,263
|
|
|
—
|
|
|
(1,268
|
)
|
|
5,252
|
|
|||||
Current payments due under the Master Settlement Agreement
|
—
|
|
|
36,561
|
|
|
—
|
|
|
—
|
|
|
36,561
|
|
|||||
Other current liabilities
|
55,915
|
|
|
73,279
|
|
|
51,144
|
|
|
—
|
|
|
180,338
|
|
|||||
Total current liabilities
|
294,150
|
|
|
141,062
|
|
|
89,367
|
|
|
(39,659
|
)
|
|
484,920
|
|
|||||
Notes payable, long-term debt and other obligations, less current portion
|
1,354,219
|
|
|
2,349
|
|
|
30,129
|
|
|
—
|
|
|
1,386,697
|
|
|||||
Fair value of derivatives embedded within convertible debt
|
24,789
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,789
|
|
|||||
Non-current employee benefits
|
45,615
|
|
|
15,673
|
|
|
—
|
|
|
—
|
|
|
61,288
|
|
|||||
Deferred income taxes, net
|
(13,084
|
)
|
|
17,732
|
|
|
32,763
|
|
|
—
|
|
|
37,411
|
|
|||||
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement
|
1,379
|
|
|
38,179
|
|
|
62,207
|
|
|
—
|
|
|
101,765
|
|
|||||
Total liabilities
|
1,707,068
|
|
|
214,995
|
|
|
214,466
|
|
|
(39,659
|
)
|
|
2,096,870
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stockholders' (deficiency) equity attributed to Vector Group Ltd.
|
(548,059
|
)
|
|
358,689
|
|
|
324,712
|
|
|
(683,401
|
)
|
|
(548,059
|
)
|
|||||
Non-controlling interest
|
—
|
|
|
—
|
|
|
693
|
|
|
—
|
|
|
693
|
|
|||||
Total stockholders' (deficiency) equity
|
(548,059
|
)
|
|
358,689
|
|
|
325,405
|
|
|
(683,401
|
)
|
|
(547,366
|
)
|
|||||
Total liabilities and stockholders' deficiency
|
$
|
1,159,009
|
|
|
$
|
573,684
|
|
|
$
|
539,871
|
|
|
$
|
(723,060
|
)
|
|
$
|
1,549,504
|
|
|
|
|
Three Months Ended June 30, 2019
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
294,621
|
|
|
$
|
243,931
|
|
|
$
|
(120
|
)
|
|
$
|
538,432
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales
|
—
|
|
|
204,461
|
|
|
163,713
|
|
|
—
|
|
|
368,174
|
|
|||||
Operating, selling, administrative and general expenses
|
9,515
|
|
|
18,167
|
|
|
65,797
|
|
|
(120
|
)
|
|
93,359
|
|
|||||
Litigation settlement and judgment expense
|
—
|
|
|
655
|
|
|
—
|
|
|
—
|
|
|
655
|
|
|||||
Management fee expense
|
—
|
|
|
2,992
|
|
|
—
|
|
|
(2,992
|
)
|
|
—
|
|
|||||
Operating (loss) income
|
(9,515
|
)
|
|
68,346
|
|
|
14,421
|
|
|
2,992
|
|
|
76,244
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(31,706
|
)
|
|
(1,043
|
)
|
|
(228
|
)
|
|
224
|
|
|
(32,753
|
)
|
|||||
Change in fair value of derivatives embedded within convertible debt
|
3,788
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,788
|
|
|||||
Equity in earnings from real estate ventures
|
—
|
|
|
—
|
|
|
6,391
|
|
|
—
|
|
|
6,391
|
|
|||||
Equity in earnings in consolidated subsidiaries
|
66,163
|
|
|
15,138
|
|
|
—
|
|
|
(81,301
|
)
|
|
—
|
|
|||||
Management fee income
|
2,992
|
|
|
—
|
|
|
—
|
|
|
(2,992
|
)
|
|
—
|
|
|||||
Other, net
|
2,017
|
|
|
447
|
|
|
632
|
|
|
—
|
|
|
3,096
|
|
|||||
Income before provision for income taxes
|
33,739
|
|
|
82,888
|
|
|
21,216
|
|
|
(81,077
|
)
|
|
56,766
|
|
|||||
Income tax benefit (expense)
|
5,568
|
|
|
(17,118
|
)
|
|
(5,909
|
)
|
|
—
|
|
|
(17,459
|
)
|
|||||
Net income
|
39,307
|
|
|
65,770
|
|
|
15,307
|
|
|
(81,077
|
)
|
|
39,307
|
|
|||||
Net loss attributed to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net income attributed to Vector Group Ltd.
|
$
|
39,307
|
|
|
$
|
65,770
|
|
|
$
|
15,307
|
|
|
$
|
(81,077
|
)
|
|
$
|
39,307
|
|
Comprehensive loss attributed to non-controlling interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Comprehensive income attributed to Vector Group Ltd.
|
$
|
39,912
|
|
|
$
|
66,004
|
|
|
$
|
15,307
|
|
|
$
|
(81,311
|
)
|
|
$
|
39,912
|
|
|
|
|
Three Months Ended June 30, 2018
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
274,953
|
|
|
$
|
206,655
|
|
|
$
|
(120
|
)
|
|
$
|
481,488
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales
|
—
|
|
|
192,761
|
|
|
140,005
|
|
|
—
|
|
|
332,766
|
|
|||||
Operating, selling, administrative and general expenses
|
8,320
|
|
|
16,570
|
|
|
61,566
|
|
|
(120
|
)
|
|
86,336
|
|
|||||
Litigation settlement and judgment expense
|
—
|
|
|
525
|
|
|
—
|
|
|
—
|
|
|
525
|
|
|||||
Management fee expense
|
—
|
|
|
2,877
|
|
|
—
|
|
|
(2,877
|
)
|
|
—
|
|
|||||
Operating (loss) income
|
(8,320
|
)
|
|
62,220
|
|
|
5,084
|
|
|
2,877
|
|
|
61,861
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(47,738
|
)
|
|
(676
|
)
|
|
(7
|
)
|
|
—
|
|
|
(48,421
|
)
|
|||||
Change in fair value of derivatives embedded within convertible debt
|
10,717
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,717
|
|
|||||
Equity in losses from real estate ventures
|
—
|
|
|
—
|
|
|
(2,112
|
)
|
|
—
|
|
|
(2,112
|
)
|
|||||
Equity in earnings in consolidated subsidiaries
|
52,092
|
|
|
—
|
|
|
—
|
|
|
(52,092
|
)
|
|
—
|
|
|||||
Management fee income
|
2,877
|
|
|
—
|
|
|
—
|
|
|
(2,877
|
)
|
|
—
|
|
|||||
Other, net
|
6,065
|
|
|
3,310
|
|
|
336
|
|
|
—
|
|
|
9,711
|
|
|||||
Income before provision for income taxes
|
15,693
|
|
|
64,854
|
|
|
3,301
|
|
|
(52,092
|
)
|
|
31,756
|
|
|||||
Income tax benefit (expense)
|
2,125
|
|
|
(15,688
|
)
|
|
803
|
|
|
—
|
|
|
(12,760
|
)
|
|||||
Net income
|
17,818
|
|
|
49,166
|
|
|
4,104
|
|
|
(52,092
|
)
|
|
18,996
|
|
|||||
Net income attributed to non-controlling interest
|
—
|
|
|
—
|
|
|
(1,178
|
)
|
|
—
|
|
|
(1,178
|
)
|
|||||
Net income attributed to Vector Group Ltd.
|
$
|
17,818
|
|
|
$
|
49,166
|
|
|
$
|
2,926
|
|
|
$
|
(52,092
|
)
|
|
$
|
17,818
|
|
Comprehensive income attributed to non-controlling interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,178
|
)
|
|
$
|
—
|
|
|
$
|
(1,178
|
)
|
Comprehensive income attributed to Vector Group Ltd.
|
$
|
18,137
|
|
|
$
|
49,312
|
|
|
$
|
2,926
|
|
|
$
|
(52,238
|
)
|
|
$
|
18,137
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
551,496
|
|
|
$
|
408,099
|
|
|
$
|
(239
|
)
|
|
$
|
959,356
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales
|
—
|
|
|
381,764
|
|
|
272,430
|
|
|
—
|
|
|
654,194
|
|
|||||
Operating, selling, administrative and general expenses
|
19,346
|
|
|
34,858
|
|
|
131,708
|
|
|
(239
|
)
|
|
185,673
|
|
|||||
Litigation settlement and judgment expense
|
—
|
|
|
655
|
|
|
—
|
|
|
—
|
|
|
655
|
|
|||||
Management fee expense
|
—
|
|
|
5,985
|
|
|
—
|
|
|
(5,985
|
)
|
|
—
|
|
|||||
Operating (loss) income
|
(19,346
|
)
|
|
128,234
|
|
|
3,961
|
|
|
5,985
|
|
|
118,834
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(68,254
|
)
|
|
(2,010
|
)
|
|
(457
|
)
|
|
448
|
|
|
(70,273
|
)
|
|||||
Change in fair value of derivatives embedded within convertible debt
|
14,137
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,137
|
|
|||||
Equity in earnings from real estate ventures
|
—
|
|
|
—
|
|
|
3,952
|
|
|
—
|
|
|
3,952
|
|
|||||
Equity in earnings in consolidated subsidiaries
|
101,428
|
|
|
4,724
|
|
|
—
|
|
|
(106,152
|
)
|
|
—
|
|
|||||
Management fee income
|
5,985
|
|
|
—
|
|
|
—
|
|
|
(5,985
|
)
|
|
—
|
|
|||||
Other, net
|
9,962
|
|
|
600
|
|
|
1,336
|
|
|
—
|
|
|
11,898
|
|
|||||
Income before provision for income taxes
|
43,912
|
|
|
131,548
|
|
|
8,792
|
|
|
(105,704
|
)
|
|
78,548
|
|
|||||
Income tax benefit (expense)
|
10,348
|
|
|
(32,066
|
)
|
|
(2,490
|
)
|
|
—
|
|
|
(24,208
|
)
|
|||||
Net income
|
54,260
|
|
|
99,482
|
|
|
6,302
|
|
|
(105,704
|
)
|
|
54,340
|
|
|||||
Net income attributed to non-controlling interest
|
—
|
|
|
—
|
|
|
(80
|
)
|
|
—
|
|
|
(80
|
)
|
|||||
Net income attributed to Vector Group Ltd.
|
$
|
54,260
|
|
|
$
|
99,482
|
|
|
$
|
6,222
|
|
|
$
|
(105,704
|
)
|
|
$
|
54,260
|
|
Comprehensive income attributed to non-controlling interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(80
|
)
|
|
$
|
—
|
|
|
$
|
(80
|
)
|
Comprehensive income attributed to Vector Group Ltd.
|
$
|
55,446
|
|
|
$
|
99,951
|
|
|
$
|
6,222
|
|
|
$
|
(106,173
|
)
|
|
$
|
55,446
|
|
|
|
|
Six Months Ended June 30, 2018
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
542,188
|
|
|
$
|
368,505
|
|
|
$
|
(239
|
)
|
|
$
|
910,454
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales
|
—
|
|
|
377,723
|
|
|
249,318
|
|
|
—
|
|
|
627,041
|
|
|||||
Operating, selling, administrative and general expenses
|
17,416
|
|
|
32,845
|
|
|
125,390
|
|
|
(239
|
)
|
|
175,412
|
|
|||||
Litigation settlement and judgment expense (income)
|
—
|
|
|
525
|
|
|
(2,469
|
)
|
|
—
|
|
|
(1,944
|
)
|
|||||
Management fee expense
|
—
|
|
|
5,754
|
|
|
—
|
|
|
(5,754
|
)
|
|
—
|
|
|||||
Operating (loss) income
|
(17,416
|
)
|
|
125,341
|
|
|
(3,734
|
)
|
|
5,754
|
|
|
109,945
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(92,969
|
)
|
|
(1,343
|
)
|
|
(56
|
)
|
|
—
|
|
|
(94,368
|
)
|
|||||
Change in fair value of derivatives embedded within convertible debt
|
21,284
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,284
|
|
|||||
Equity in losses from real estate ventures
|
—
|
|
|
—
|
|
|
(8,672
|
)
|
|
—
|
|
|
(8,672
|
)
|
|||||
Equity in earnings in consolidated subsidiaries
|
86,513
|
|
|
|
|
|
—
|
|
|
(86,513
|
)
|
|
—
|
|
|||||
Management fee income
|
5,754
|
|
|
—
|
|
|
—
|
|
|
(5,754
|
)
|
|
—
|
|
|||||
Other, net
|
8,820
|
|
|
(319
|
)
|
|
678
|
|
|
—
|
|
|
9,179
|
|
|||||
Income (loss) before provision for income taxes
|
11,986
|
|
|
123,679
|
|
|
(11,784
|
)
|
|
(86,513
|
)
|
|
37,368
|
|
|||||
Income tax benefit (expense)
|
13,043
|
|
|
(31,548
|
)
|
|
3,797
|
|
|
—
|
|
|
(14,708
|
)
|
|||||
Net income (loss)
|
25,029
|
|
|
92,131
|
|
|
(7,987
|
)
|
|
(86,513
|
)
|
|
22,660
|
|
|||||
Net loss attributed to non-controlling interest
|
—
|
|
|
—
|
|
|
2,369
|
|
|
—
|
|
|
2,369
|
|
|||||
Net income (loss) attributed to Vector Group Ltd.
|
$
|
25,029
|
|
|
$
|
92,131
|
|
|
$
|
(5,618
|
)
|
|
$
|
(86,513
|
)
|
|
$
|
25,029
|
|
Comprehensive loss attributed to non-controlling interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,369
|
|
|
$
|
—
|
|
|
$
|
2,369
|
|
Comprehensive income (loss) attributed to Vector Group Ltd.
|
$
|
25,598
|
|
|
$
|
92,415
|
|
|
$
|
(5,618
|
)
|
|
$
|
(86,797
|
)
|
|
$
|
25,598
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Net cash provided by operating activities
|
$
|
78,661
|
|
|
$
|
148,639
|
|
|
$
|
10,158
|
|
|
$
|
(139,356
|
)
|
|
$
|
98,102
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Sale of investment securities
|
12,942
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,942
|
|
|||||
Maturities of investment securities
|
28,610
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,610
|
|
|||||
Purchase of investment securities
|
(44,222
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44,222
|
)
|
|||||
Investments in real estate ventures
|
—
|
|
|
—
|
|
|
(21,908
|
)
|
|
—
|
|
|
(21,908
|
)
|
|||||
Purchase of subsidiaries
|
—
|
|
|
—
|
|
|
(668
|
)
|
|
—
|
|
|
(668
|
)
|
|||||
Distributions from investments in real estate ventures
|
—
|
|
|
—
|
|
|
23,200
|
|
|
—
|
|
|
23,200
|
|
|||||
Increase in cash surrender value of life insurance policies
|
(385
|
)
|
|
(404
|
)
|
|
—
|
|
|
—
|
|
|
(789
|
)
|
|||||
(Increase) decrease in restricted assets
|
(15
|
)
|
|
683
|
|
|
—
|
|
|
—
|
|
|
668
|
|
|||||
Investments in subsidiaries
|
(27,482
|
)
|
|
—
|
|
|
—
|
|
|
27,482
|
|
|
—
|
|
|||||
Proceeds from sale of fixed assets
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Capital expenditures
|
—
|
|
|
(2,753
|
)
|
|
(3,567
|
)
|
|
—
|
|
|
(6,320
|
)
|
|||||
Pay downs of investment securities
|
545
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
545
|
|
|||||
Investments in real estate, net
|
—
|
|
|
—
|
|
|
(1,153
|
)
|
|
—
|
|
|
(1,153
|
)
|
|||||
Net cash used in investing activities
|
(30,007
|
)
|
|
(2,466
|
)
|
|
(4,096
|
)
|
|
27,482
|
|
|
(9,087
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deferred financing costs
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|||||
Repayments of debt
|
(230,000
|
)
|
|
(621
|
)
|
|
(150
|
)
|
|
—
|
|
|
(230,771
|
)
|
|||||
Borrowings under revolver
|
—
|
|
|
172,224
|
|
|
—
|
|
|
—
|
|
|
172,224
|
|
|||||
Repayments on revolver
|
—
|
|
|
(169,727
|
)
|
|
—
|
|
|
—
|
|
|
(169,727
|
)
|
|||||
Capital contributions received
|
—
|
|
|
575
|
|
|
26,907
|
|
|
(27,482
|
)
|
|
—
|
|
|||||
Intercompany dividends paid
|
—
|
|
|
(102,739
|
)
|
|
(36,617
|
)
|
|
139,356
|
|
|
—
|
|
|||||
Dividends and distributions on common stock
|
(118,748
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(118,748
|
)
|
|||||
Distributions to non-controlling interest
|
—
|
|
|
—
|
|
|
(285
|
)
|
|
—
|
|
|
(285
|
)
|
|||||
Net cash used in financing activities
|
(348,748
|
)
|
|
(100,321
|
)
|
|
(10,145
|
)
|
|
111,874
|
|
|
(347,340
|
)
|
|||||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(300,094
|
)
|
|
45,852
|
|
|
(4,083
|
)
|
|
—
|
|
|
(258,325
|
)
|
|||||
Cash, cash equivalents and restricted cash, beginning of period
|
474,880
|
|
|
23,849
|
|
|
93,000
|
|
|
—
|
|
|
591,729
|
|
|||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
174,786
|
|
|
$
|
69,701
|
|
|
$
|
88,917
|
|
|
$
|
—
|
|
|
$
|
333,404
|
|
|
|
|
Six Months Ended June 30, 2018
|
|
|
||||||||||||||
|
|
|
|
|
Subsidiary
|
|
|
|
Consolidated
|
||||||||||
|
Parent/
|
|
Subsidiary
|
|
Non-
|
|
Consolidating
|
|
Vector Group
|
||||||||||
|
Issuer
|
|
Guarantors
|
|
Guarantors
|
|
Adjustments
|
|
Ltd.
|
||||||||||
Net cash provided by operating activities
|
$
|
88,944
|
|
|
$
|
144,713
|
|
|
$
|
4,109
|
|
|
$
|
(115,340
|
)
|
|
$
|
122,426
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Sale of investment securities
|
2,647
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,647
|
|
|||||
Maturities of investment securities
|
10,598
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,598
|
|
|||||
Purchase of investment securities
|
(12,402
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,402
|
)
|
|||||
Investments in real estate ventures
|
—
|
|
|
—
|
|
|
(4,343
|
)
|
|
—
|
|
|
(4,343
|
)
|
|||||
Investments in real estate, net
|
—
|
|
|
—
|
|
|
(1,009
|
)
|
|
—
|
|
|
(1,009
|
)
|
|||||
Acquisition of a business
|
—
|
|
|
—
|
|
|
(403
|
)
|
|
—
|
|
|
(403
|
)
|
|||||
Distributions from investments in real estate ventures
|
—
|
|
|
—
|
|
|
27,134
|
|
|
—
|
|
|
27,134
|
|
|||||
Increase in cash surrender value of life insurance policies
|
(408
|
)
|
|
(401
|
)
|
|
—
|
|
|
—
|
|
|
(809
|
)
|
|||||
Decrease in restricted assets
|
22
|
|
|
240
|
|
|
—
|
|
|
—
|
|
|
262
|
|
|||||
Repayments of notes receivable
|
20,000
|
|
|
—
|
|
|
32
|
|
|
(20,000
|
)
|
|
32
|
|
|||||
Pay downs of investment securities
|
928
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
928
|
|
|||||
Investments in subsidiaries
|
(6,790
|
)
|
|
—
|
|
|
—
|
|
|
6,790
|
|
|
—
|
|
|||||
Capital expenditures
|
(15
|
)
|
|
(2,072
|
)
|
|
(6,529
|
)
|
|
—
|
|
|
(8,616
|
)
|
|||||
Net cash provided by (used in) investing activities
|
14,580
|
|
|
(2,233
|
)
|
|
14,882
|
|
|
(13,210
|
)
|
|
14,019
|
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments of debt
|
—
|
|
|
(20,840
|
)
|
|
(147
|
)
|
|
20,000
|
|
|
(987
|
)
|
|||||
Borrowings under revolver
|
—
|
|
|
134,310
|
|
|
—
|
|
|
—
|
|
|
134,310
|
|
|||||
Repayments on revolver
|
—
|
|
|
(137,877
|
)
|
|
—
|
|
|
—
|
|
|
(137,877
|
)
|
|||||
Capital contributions received
|
—
|
|
|
500
|
|
|
6,290
|
|
|
(6,790
|
)
|
|
—
|
|
|||||
Intercompany dividends paid
|
—
|
|
|
(83,219
|
)
|
|
(32,121
|
)
|
|
115,340
|
|
|
—
|
|
|||||
Dividends and distributions on common stock
|
(112,462
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(112,462
|
)
|
|||||
Distributions to non-controlling interest
|
—
|
|
|
—
|
|
|
(359
|
)
|
|
—
|
|
|
(359
|
)
|
|||||
Net cash used in financing activities
|
(112,462
|
)
|
|
(107,126
|
)
|
|
(26,337
|
)
|
|
128,550
|
|
|
(117,375
|
)
|
|||||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(8,938
|
)
|
|
35,354
|
|
|
(7,346
|
)
|
|
—
|
|
|
19,070
|
|
|||||
Cash, cash equivalents and restricted cash, beginning of period
|
194,719
|
|
|
20,175
|
|
|
96,043
|
|
|
—
|
|
|
310,937
|
|
|||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
185,781
|
|
|
$
|
55,529
|
|
|
$
|
88,697
|
|
|
$
|
—
|
|
|
$
|
330,007
|
|
•
|
Tobacco: the manufacture and sale of cigarettes in the United States through our Liggett Group LLC (“Liggett”) and Vector Tobacco Inc. (“Vector Tobacco”) subsidiaries, and
|
•
|
Real Estate: the real estate business through our New Valley LLC (“New Valley”) subsidiary, which owns Douglas Elliman Realty, LLC (“Douglas Elliman”) and is seeking to acquire or invest in additional real estate properties or projects. Douglas Elliman operates the largest residential brokerage company in the New York metropolitan area and also conducts residential real estate brokerage operations in Florida, Southern California, Connecticut, Massachusetts and Aspen, Colorado. On December 31, 2018, New Valley increased its ownership of Douglas Elliman from 70.59% to
100%
.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
Revenues
:
|
|
|
|
|
|
|
|
|
||||||||
Tobacco
|
$
|
294,501
|
|
|
$
|
274,833
|
|
|
$
|
551,257
|
|
|
$
|
541,949
|
|
|
Real estate
|
243,931
|
|
|
206,655
|
|
|
408,099
|
|
|
368,505
|
|
|
||||
Total revenues
|
$
|
538,432
|
|
|
$
|
481,488
|
|
|
$
|
959,356
|
|
|
$
|
910,454
|
|
|
Operating income (loss)
:
|
|
|
|
|
|
|
|
|
||||||||
Tobacco
|
$
|
68,651
|
|
(1)
|
$
|
62,515
|
|
(2)
|
$
|
128,795
|
|
(3)
|
$
|
125,926
|
|
(4)
|
Real estate
|
14,453
|
|
|
5,867
|
|
|
4,044
|
|
|
(2,893
|
)
|
(5)
|
||||
Corporate and Other
|
(6,860
|
)
|
|
(6,521
|
)
|
|
(14,005
|
)
|
|
(13,088
|
)
|
|
||||
Total operating income
|
$
|
76,244
|
|
|
$
|
61,861
|
|
|
$
|
118,834
|
|
|
$
|
109,945
|
|
|
(1)
|
Operating income includes
$655
of litigation settlement and judgment expense.
|
(2)
|
Operating income includes
$2,808
of income from MSA Settlements and
$525
of litigation settlement and judgment expense.
|
(4)
|
Operating income includes
$6,298
of income from MSA Settlements and
$525
of litigation settlement and judgment expense.
|
(5)
|
Operating income includes
$2,469
of litigation settlement and judgment income.
|
|
|
|
|
Three Months Ended
|
|
||||||
|
|
|
|
June 30,
|
|
||||||
|
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
||||||
Manufacturing overhead, raw materials and labor
|
|
$
|
33,197
|
|
|
$
|
30,973
|
|
|
||
Customer shipping and handling
|
|
|
1,503
|
|
|
1,318
|
|
|
|||
Federal Excise Taxes, net
|
|
|
119,943
|
|
|
115,970
|
|
|
|||
FDA expense
|
|
|
6,048
|
|
|
5,711
|
|
|
|||
MSA expense, net of market share exemption
|
|
|
43,770
|
|
|
38,789
|
|
(1)
|
|||
Total cost of sales
|
|
|
$
|
204,461
|
|
|
$
|
192,761
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||
|
June 30,
|
||||||
|
2019
|
|
2018
|
||||
Real Estate Revenues
:
|
|
|
|
||||
Commission and other brokerage income
|
$
|
230,334
|
|
|
$
|
194,936
|
|
Property management revenue
|
10,218
|
|
|
8,741
|
|
||
Title fees
|
2,400
|
|
|
1,922
|
|
||
Sales on facilities primarily from Escena
|
979
|
|
|
1,056
|
|
||
Total real estate revenues
|
$
|
243,931
|
|
|
$
|
206,655
|
|
|
|
|
|
||||
Real Estate Cost of Sales:
|
|
|
|
||||
Real estate agent commissions
|
$
|
162,192
|
|
|
$
|
138,648
|
|
Cost of sales on facilities primarily from Escena
|
871
|
|
|
884
|
|
||
Title fees
|
650
|
|
|
473
|
|
||
Total real estate cost of sales
|
$
|
163,713
|
|
|
$
|
140,005
|
|
|
|
|
|
Six Months Ended
|
|
||||||
|
|
|
|
June 30,
|
|
||||||
|
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
||||||
Manufacturing overhead, raw materials and labor
|
|
$
|
61,672
|
|
|
$
|
61,525
|
|
|
||
Customer shipping and handling
|
|
|
2,995
|
|
|
2,670
|
|
|
|||
Federal Excise Taxes, net
|
|
|
224,576
|
|
|
228,771
|
|
|
|||
FDA expense
|
|
|
12,393
|
|
|
11,316
|
|
|
|||
MSA expense, net of market share exemption
|
|
|
80,128
|
|
|
73,441
|
|
(1)
|
|||
|
Total cost of sales
|
|
|
$
|
381,764
|
|
|
$
|
377,723
|
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2019
|
|
2018
|
||||
Real Estate Revenues
:
|
|
|
|
||||
Commission and other brokerage income
|
$
|
382,647
|
|
|
$
|
345,052
|
|
Property management revenue
|
18,569
|
|
|
17,079
|
|
||
Title fees
|
3,633
|
|
|
2,911
|
|
||
Sales on facilities primarily from Escena
|
3,250
|
|
|
3,463
|
|
||
Total real estate revenues
|
$
|
408,099
|
|
|
$
|
368,505
|
|
|
|
|
|
||||
Real Estate Cost of Sales
:
|
|
|
|
||||
Real estate agent commissions
|
$
|
269,542
|
|
|
$
|
246,674
|
|
Cost of sales on facilities primarily from Escena
|
1,958
|
|
|
1,976
|
|
||
Title fees
|
930
|
|
|
668
|
|
||
Total real estate cost of sales
|
$
|
272,430
|
|
|
$
|
249,318
|
|
|
(Dollars in Thousands. Area and Unit Information in Ones)
|
||||||||||||||||||||||||||
|
Location
|
Date of Initial Investment
|
Percentage Owned (1)
|
Net Cash Invested (Returned)
|
Cumulative Earnings (Losses)
|
Carrying Value as of June 30, 2019
|
Future Capital Commit-
ments from New Valley (2) |
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
|
%
|
$
|
17,203
|
|
$
|
—
|
|
$
|
17,203
|
|
$
|
—
|
|
TBD
|
|
|
N/A
|
|
|
1
|
|
R
|
N/A
|
N/A
|
Escena, net
|
Master planned community, golf course, restaurant and shop in Palm Springs, CA
|
March 2008
|
100
|
%
|
2,425
|
|
7,584
|
|
10,009
|
|
—
|
|
450
|
|
Acres
|
—
|
|
|
667
450 |
|
R Lots
H |
N/A
|
N/A
|
||||
Investments in real estate, net
|
|
|
|
$
|
19,628
|
|
$
|
7,584
|
|
$
|
27,212
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investments in real estate ventures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
10 Madison Square West (1107 Broadway)
|
Flatiron District/NoMad neighborhood, Manhattan, NY
|
October 2011
|
5.0
|
%
|
$
|
(43,671
|
)
|
$
|
43,671
|
|
$
|
—
|
|
$
|
—
|
|
260,000
|
|
SF
|
20,000
|
|
SF
|
124
|
|
R
|
August 2012
|
Completed
|
The Marquand (11 East 68th Street)
|
Upper East Side, Manhattan, NY
|
December 2011
|
18.0
|
%
|
(2,355
|
)
|
3,255
|
|
900
|
|
—
|
|
90,000
|
|
SF
|
—
|
|
|
29
|
|
R
|
June 2012
|
Completed
|
||||
11 Beach Street
|
TriBeCa, Manhattan, NY
|
June 2012
|
49.5
|
%
|
4,790
|
|
8,045
|
|
12,835
|
|
—
|
|
97,000
|
|
SF
|
—
|
|
|
27
|
|
R
|
May 2014
|
Completed
|
||||
20 Times Square (701 Seventh Avenue)
|
Times Square, Manhattan, NY
|
August 2012
|
7.9
|
%
|
(7,827
|
)
|
7,827
|
|
—
|
|
—
|
|
252,000
|
|
SF
|
80,000
|
|
SF
|
452
|
|
H
|
September 2013
|
Completed
|
||||
111 Murray Street
|
TriBeCa, Manhattan, NY
|
May 2013
|
9.5
|
%
|
10,468
|
|
748
|
|
11,216
|
|
—
|
|
330,000
|
|
SF
|
1,700
|
|
SF
|
157
|
|
R
|
September 2014
|
September 2019
|
||||
160 Leroy Street
(3)
|
West Greenwich Village, Manhattan, NY
|
March 2013
|
3.1
|
%
|
(626
|
)
|
1,602
|
|
976
|
|
—
|
|
130,000
|
|
SF
|
—
|
|
|
57
|
|
R
|
Fall 2015
|
Completed
|
||||
The Dutch (25-19 43rd Avenue)
|
Long Island City, NY
|
May 2014
|
9.9
|
%
|
(799
|
)
|
1,385
|
|
586
|
|
|
65,000
|
|
SF
|
—
|
|
|
86
|
|
R
|
September 2014
|
Completed
|
|||||
87 Park (8701 Collins Avenue)
|
Miami Beach, FL
|
December 2013
|
15.0
|
%
|
18,352
|
|
4,699
|
|
23,051
|
|
—
|
|
160,000
|
|
SF
|
TBD
|
|
|
70
|
|
R
|
October 2015
|
December 2019
|
||||
125 Greenwich Street
(3)
|
Financial District, Manhattan, NY
|
August 2014
|
13.4
|
%
|
7,992
|
|
(7,992
|
)
|
—
|
|
—
|
|
306,000
|
|
SF
|
16,000
|
|
SF
|
273
|
|
R
|
March 2015
|
TBD
|
||||
West Hollywood Edition (9040 Sunset Boulevard)
|
West Hollywood, CA
|
October 2014
|
48.5
|
%
|
(1,552
|
)
|
(199
|
)
|
(1,751
|
)
|
—
|
|
210,000
|
|
SF
|
—
|
|
|
20
190 |
|
R
H |
May 2015
|
September 2019
|
||||
The XI (76 Eleventh Avenue)
|
West Chelsea, Manhattan, NY
|
May 2015
|
5.1
|
%
|
17,000
|
|
7,256
|
|
24,256
|
|
—
|
|
630,000
|
|
SF
|
85,000
|
|
SF
|
236
137 |
|
R
H |
September 2016
|
June 2020
|
||||
Monad Terrace
|
Miami Beach, FL
|
May 2015
|
17.9
|
%
|
7,635
|
|
(32
|
)
|
7,603
|
|
—
|
|
160,000
|
|
SF
|
—
|
|
|
59
|
|
R
|
May 2016
|
March 2020
|
||||
Takanasee (805 Ocean Ave)
|
Long Branch, NJ
|
December 2015
|
22.8
|
%
|
5,921
|
|
1,186
|
|
7,107
|
|
—
|
|
63,000
|
|
SF
|
—
|
|
|
13
|
|
R
|
June 2017
|
TBD
|
||||
Brookland (15 East 19th St)
|
Brooklyn, NY
|
April 2017
|
9.8
|
%
|
402
|
|
102
|
|
504
|
|
—
|
|
24,000
|
|
SF
|
—
|
|
|
33
|
|
R
|
August 2017
|
July 2019
|
||||
Dime (209 Havemeyer St)
|
Brooklyn, NY
|
November 2017
|
19.8
|
%
|
8,650
|
|
1,679
|
|
10,329
|
|
—
|
|
100,000
|
|
SF
|
150,000
|
|
SF
|
177
|
|
R
|
May 2017
|
December 2019
|
||||
352 6th Avenue
|
Brooklyn, NY
|
February 2019
|
37.0
|
%
|
500
|
|
17
|
|
517
|
|
—
|
|
5,200
|
|
SF
|
—
|
|
|
4
|
|
R
|
September 2019
|
September 2020
|
||||
Meatpacking Plaza
|
Meatpacking District, NY
|
April 2019
|
17.0
|
%
|
10,018
|
|
233
|
|
10,251
|
|
—
|
|
TBD
|
|
—
|
TBD
|
|
—
|
—
|
|
—
|
TBD
|
TBD
|
||||
9 DeKalb
|
Brooklyn, NY
|
April 2019
|
5.5
|
%
|
5,000
|
|
116
|
|
5,116
|
|
—
|
|
450,000
|
|
SF
|
120,000
|
|
SF
|
540
|
|
R
|
March 2019
|
March 2022
|
||||
Condominium and Mixed Use Development
|
|
|
|
$
|
39,898
|
|
$
|
73,598
|
|
$
|
113,496
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Maryland Portfolio
|
Primarily Baltimore County, MD
|
July 2012
|
7.6
|
%
|
$
|
774
|
|
$
|
(774
|
)
|
$
|
—
|
|
$
|
—
|
|
N/A
|
|
|
N/A
|
|
|
5,517
|
|
R
|
N/A
|
N/A
|
ST Portfolio
|
|
November 2013
|
16.3
|
%
|
(1,673
|
)
|
1,673
|
|
—
|
|
—
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
N/A
|
||||
Apartment Buildings
|
|
|
|
$
|
(899
|
)
|
$
|
899
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Park Lane Hotel (36 Central Park South)
|
Central Park South, Manhattan, NY
|
November 2013
|
5.2
|
%
|
$
|
8,682
|
|
$
|
(6,067
|
)
|
$
|
2,615
|
|
$
|
—
|
|
446,000
|
|
SF
|
—
|
|
|
628
|
|
H
|
N/A
|
N/A
|
215 Chrystie Street
|
Lower East Side, Manhattan, NY
|
December 2012
|
18.4
|
%
|
(4,551
|
)
|
4,551
|
|
—
|
|
—
|
|
246,000
|
|
SF
|
—
|
|
|
367
|
|
H
|
June 2014
|
Completed
|
||||
Coral Beach and Tennis Club
|
Coral Beach, Bermuda
|
December 2013
|
49.0
|
%
|
6,048
|
|
(4,078
|
)
|
1,970
|
|
—
|
|
52
|
|
Acres
|
—
|
|
|
101
|
|
H
|
N/A
|
N/A
|
||||
Hotels
|
|
|
|
$
|
10,179
|
|
$
|
(5,594
|
)
|
$
|
4,585
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The Plaza at Harmon Meadow (700 Plaza Drive)
|
Secaucus, NJ
|
March 2015
|
49.0
|
%
|
$
|
4,807
|
|
$
|
(2,686
|
)
|
$
|
2,121
|
|
$
|
—
|
|
—
|
|
—
|
219,000
|
|
SF
|
—
|
|
—
|
N/A
|
N /A
|
Wynn Las Vegas Retail (3131 Las Vegas Blvd South)
|
Las Vegas, NV
|
December 2016
|
1.6
|
%
|
4,972
|
|
2,382
|
|
7,354
|
|
—
|
|
—
|
|
—
|
160,000
|
|
SF
|
—
|
|
—
|
N/A
|
N/A
|
||||
Commercial
|
|
|
|
$
|
9,779
|
|
$
|
(304
|
)
|
$
|
9,475
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Witkoff GP Partners
(4)
|
Multiple
|
March 2017
|
15.0
|
%
|
$
|
14,142
|
|
$
|
(844
|
)
|
$
|
13,298
|
|
$
|
5,768
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
N/A
|
1 QPS Tower (23-10 Queens Plaza South)
|
Long Island City, NY
|
December 2012
|
45.4
|
%
|
(11,882
|
)
|
13,666
|
|
1,784
|
|
—
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
March 2014
|
Completed
|
||||
Witkoff EB-5 Capital Partners
|
Multiple
|
September 2018
|
49.0
|
%
|
(387
|
)
|
772
|
|
385
|
|
9,010
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
N/A
|
||||
Diverse Real Estate Portfolio
|
|
|
|
$
|
1,873
|
|
$
|
13,594
|
|
$
|
15,467
|
|
$
|
14,778
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investments in real estate ventures
|
|
|
|
$
|
60,830
|
|
$
|
82,193
|
|
$
|
143,023
|
|
$
|
14,778
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Carrying Value
|
|
|
|
$
|
80,458
|
|
$
|
89,777
|
|
$
|
170,235
|
|
|
|
|
|
|
|
|
|
|
||||||
(1) The Percentage Owned reflects our estimated current ownership percentage. Our actual ownership percentage as well as the percentage of earnings and cash distributions may ultimately differ as a result of a number of factors including potential dilution, financing or admission of additional partners.
|
|||||||||||||||||||||||||||
(2) 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.
|
|||||||||||||||||||||||||||
(3) Carrying value as of June 30, 2019, includes non-controlling interest of $488 and $0 respectively.
|
|||||||||||||||||||||||||||
(4) The Witkoff GP Partners venture includes a $1,848 investment in 500 Broadway, a $7,258 investment in Fontainebleau Las Vegas, and a $3,725 investment in 701 7th debt.
|
|||||||||||||||||||||||||||
N/A - Not applicable
|
SF - Square feet
|
H - Hotel rooms
|
TBD -To be determined
|
R - Residential Units
|
R Lots - Residential lots
|
|
|
|
|
|
Indenture
|
|
June 30,
2019 |
Covenant
|
|
Requirement
|
|
|
Consolidated EBITDA, as defined
|
|
$75,000
|
|
$319,475
|
Leverage ratio, as defined
|
|
<3.0 to 1
|
|
2.79 to 1
|
Secured leverage ratio, as defined
|
|
<1.5 to 1
|
|
1.14 to 1
|
Covenant
|
|
Indenture Requirement
|
|
June 30,
2019 |
Consolidated EBITDA, as defined
|
|
N/A
|
|
$264,612
|
Fixed charge coverage ratio, as defined
|
|
>2.0 to 1
|
|
2.72 to 1
|
Net leverage ratio, as defined
|
|
<4.0 to 1
|
|
2.53 to 1
|
Secured leverage ratio, as defined
|
|
<3.75 to 1
|
|
0.54 to 1
|
•
|
economic outlook,
|
•
|
capital expenditures,
|
•
|
cost reduction,
|
•
|
legislation and regulations,
|
•
|
cash flows,
|
•
|
operating performance,
|
•
|
litigation, 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.
|
Period
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
|||||
April 1 to April 30, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
May 1 to May 31, 2019
|
5,165
|
|
|
9.04
|
|
(1)
|
—
|
|
|
—
|
|
|
June 1 to June 30, 2019
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
5,165
|
|
|
$
|
9.04
|
|
|
—
|
|
|
—
|
|
|
|
VECTOR GROUP LTD.
|
|
|
(Registrant)
|
|
|
|
|
|
By: /s/ J. Bryant Kirkland III
|
|
|
J. Bryant Kirkland III
|
|
|
Senior Vice President, Treasurer and
|
|
|
Chief Financial Officer
|
Date:
|
August 9, 2019
|
|
1 Year Vector Chart |
1 Month Vector Chart |
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