View Filing Data

$ 1,690,949

$ 1,657,197

$ 1,591,315

Operating, selling, administrative and general expenses

1,097,344

1,109,727

1,097,060

340,567

320,221

279,342

Litigation settlement and judgment expense

20,000

20,072

2,475

Change in fair value of derivatives embedded within convertible debt

7,257

Operating income

232,997

199,920

212,438

Other income (expenses):

Interest expense

(142,982)

(120,691)

(160,991)

31,710

24,455

19,409

Acceleration of interest expense related to debt conversion

(5,205)

Equity in (losses) earnings from investments

(2,754)

(2,681)

3,140

Gain (loss) on sale of investment securities available for sale

2,907

11,138

(11)

Impairment of investment securities available for sale

5,200

2,001

4,103

(5,381)

(12,846)

Other, net

4,732

6,409

9,396

Income before provision for income taxes

126,429

107,705

82,279

Income tax expense

49,163

41,233

33,165

Net income

77,266

66,472

49,114

Net income attributed to non-controlling interest

(6,139)

(7,274)

(12,258)

Net income attributed to Vector Group Ltd.

$ 71,127

$ 59,198

$ 36,856

Per basic common share:

Net income applicable to common share attributed to Vector Group Ltd. (in dollars per share)

$ 0.56

$ 0.46

$ 0.32

Per diluted common share:

Net income applicable to common share attributed to Vector Group Ltd. (in dollars per share)

0.55

0.46

0.32

Cash distributions declared per share (in dollars per share)

$ 1.54

$ 1.47

$ 1.40

Tobacco

Revenues

^[1]

$ 1,011,620

$ 1,017,761

$ 1,021,259

^[1]

672,431

697,900

735,725

7,257

Real Estate

Revenues

680,105

641,406

561,467

424,829

410,287

354,028

E-Cigarettes

Revenues

(776)

(1,970)

8,589

Summary of Significant Accounting Policies

$ 84

$ 1,540

$ 7,307

[1]	Revenues and cost of sales include federal excise taxes of $425,980, $439,647 and $446,086 for the years ended December 31, 2016, 2015 and 2014, respectively.

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Tax portion of revenues and cost of goods sold	$ 425,980	$ 439,647	$ 446,086

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 77,266	$ 66,472	$ 49,114
Net unrealized (losses) gains on investment securities available for sale:
Change in net unrealized (losses) gains	(6,139)	(12,710)	2,095
Net unrealized losses reclassified into net income	2,474	1,708	11
Net unrealized (losses) gains on investment securities available for sale	(3,665)	(11,002)	2,106
Net unrealized gains (losses) on long-term investments accounted for under the equity method:
Change in net unrealized gains (losses)	0	1,190	(1,784)
Net unrealized losses reclassified into net income	0	1,624	0
Net unrealized gains (losses) on long-term investments accounted for under the equity method	0	2,814	(1,784)
Net change in forward contracts	28	61	64
Net change in pension-related amounts
Net gain arising during the year	(3,064)	(8,620)	(4,698)
Amortization of loss	1,780	4,200	1,015
Net change in pension-related amounts	(1,284)	(4,420)	(3,683)
Other comprehensive loss	(4,921)	(12,547)	(3,297)
Income tax effect on:
Change in net unrealized (losses) gains on investment securities	2,490	5,650	(866)
Net unrealized losses reclassified into net income on investment securities	(1,004)	(702)	(5)
Change in unrealized gains (losses) on long-term investments accounted for under the equity method	0	(484)	738
Net unrealized losses reclassified into net income on long-term investments accounted for under the equity method	0	(672)	0
Forward contracts	(11)	(25)	(27)
Pension-related amounts	514	1,810	1,523
Income tax benefit on other comprehensive income	1,989	5,577	1,363
Other comprehensive loss, net of tax	(2,932)	(6,970)	(1,934)
Comprehensive income	74,334	59,502	47,180
Comprehensive income attributed to non-controlling interest	(6,139)	(7,274)	(12,258)
Comprehensive income attributed to Vector Group Ltd.	$ 68,195	$ 52,228	$ 34,922

Consolidated Statement of Stockholders' Deficiency - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	123,792,329	114,501,014	97,482,998
Beginning Balance	$ (122,161)	$ (20,680)	$ (50,605)
Net income	77,266	66,472	49,114
Change in net loss and prior service cost, net of income taxes	(770)	(2,610)	(2,160)
Forward contract adjustments, net of income taxes	17	36	37
Unrealized gain (loss) on long-term investment securities accounted for under the equity method, net of income taxes		1,658	(1,046)
Change in net unrealized gain (loss) on investment securities, net of income taxes	(3,629)	(7,060)	1,229
Net unrealized loss reclassified into net income, net of income taxes	1,450	1,006	6
Unrealized gain (loss) on investment securities, net of income taxes	(2,179)	(6,054)	1,235
Other comprehensive loss, net of tax	(2,932)	(6,970)	(1,934)
Comprehensive income	74,334	59,502	47,180
Distributions and dividends on common stock	(201,107)	(189,838)	(166,898)
Restricted stock grant	0	120	100
Surrender of shares in connection with restricted stock vesting	(4,052)	(2,083)
Effect of stock dividend	0	0	0
Cancellation of shares under share lending agreement	$ 0
Note conversion		$ 25,522	132,021
Beneficial conversion feature of notes payable, net of income taxes			$ 14,648
Exercise of stock options (in shares)	33,501	121,308	464,877
Exercise of stock options	$ 398	$ 1,321	$ 5,051
Cancellation of treasury shares		0
Tax benefit of options exercised	579	821	1,178
Stock-based compensation	10,034	5,621	3,251
Non-controlling interest	248	813	2,733
Distributions to non-controlling interest	$ (11,545)	$ (3,280)	$ (9,339)
Beginning Balance (in shares)	127,739,481.000	123,792,329	114,501,014
Ending Balance	$ (253,272)	$ (122,161)	$ (20,680)
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 12,379	$ 11,450	$ 9,748
Restricted stock grant (in shares)	50,000	1,200,000	1,000,000
Restricted stock grant	$ 5	$ 120	$ 100
Surrender of shares in connection with restricted stock vesting (in shares)	(187,577)	(83,411)
Surrender of shares in connection with restricted stock vesting	$ (18)	$ (8)
Effect of stock dividend (in shares)	6,087,035	5,837,144	5,195,856
Effect of stock dividend	$ 609	$ 584	$ 520
Cancellation of shares under share lending agreement (in shares)	(2,034,212)
Cancellation of shares under share lending agreement	$ (204)
Note conversion (in shares)		2,227,552	10,417,384
Note conversion		$ 223	$ 1,041
Exercise of stock options (in shares)	31,906	110,030	404,776
Exercise of stock options	$ 3	$ 10	$ 41
Ending Balance	12,774	12,379	11,450
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	0	0	0
Distributions and dividends on common stock	(7,173)	(18,120)	(155,067)
Restricted stock grant	(5)		0
Surrender of shares in connection with restricted stock vesting	(4,034)	(2,075)
Cancellation of shares under share lending agreement	204
Note conversion		25,299	130,980
Beneficial conversion feature of notes payable, net of income taxes			14,648
Exercise of stock options	395	1,311	5,010
Cancellation of treasury shares		(12,857)
Tax benefit of options exercised	579	821	1,178
Stock-based compensation	10,034	5,621	3,251
Ending Balance	0	0	0
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(210,113)	(97,009)	(121,514)
Net income	71,127	59,198	36,856
Distributions and dividends on common stock	(193,934)	(171,718)	(11,831)
Effect of stock dividend	(609)	(584)	(520)
Ending Balance	(333,529)	(210,113)	(97,009)
Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(8,313)	(1,343)	591
Change in net loss and prior service cost, net of income taxes	(770)	(2,610)	(2,160)
Forward contract adjustments, net of income taxes	17	36	37
Unrealized gain (loss) on long-term investment securities accounted for under the equity method, net of income taxes		1,658	(1,046)
Change in net unrealized gain (loss) on investment securities, net of income taxes	(3,629)	(7,060)	1,229
Net unrealized loss reclassified into net income, net of income taxes	1,450	1,006	6
Ending Balance	(11,245)	(8,313)	(1,343)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	0	(12,857)	(12,857)
Cancellation of treasury shares		12,857
Ending Balance	0	0	(12,857)
Non-controlling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	83,886	79,079	73,427
Net income	6,139	7,274	12,258
Non-controlling interest	248	813	2,733
Distributions to non-controlling interest	(11,545)	(3,280)	(9,339)
Ending Balance	$ 78,728	$ 83,886	$ 79,079

Consolidated Statement of Stockholders' Deficiency (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Income taxes on note conversion	$ 367	$ 367	$ 300
Income taxes on beneficial conversion feature of notes payable			$ 10,327

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 77,266	$ 66,472	$ 49,114
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	22,359	25,654	24,499
Non-cash stock-based expense	10,034	5,621	3,251
Acceleration of interest expense related to debt conversion	0	0	5,205
(Gain) loss on sale of assets	(42)	77	(540)
Deferred income taxes	12,571	(13,195)	22,026
Distributions from long-term investments	1,347	1,258	1,416
Gain on liquidation of long-term investments accounted for at cost	(189)	0	0
Equity in losses (earnings) from long-term investments	2,754	2,681	(3,140)
(Gain) loss on sale of investment securities available for sale	(2,907)	(11,138)	11
Equity in earnings from real estate ventures	(5,200)	(2,001)	(4,103)
Distributions from real estate ventures	23,446	5,894	5,152
Non-cash interest expense	(10,549)	(6,504)	(35,584)
Impairment of investment securities	5,381	12,846	0
Impairment of long-term investments	1,587	811	0
Impairment of real estate, net	0	230	0
Changes in assets and liabilities:
Receivables	(5,809)	(1,414)	(11,197)
Inventories	(3,317)	3,806	3,173
Accounts payable and accrued liabilities	(22,922)	37,936	5,708
Payments due under the Master Settlement Agreement	(10,968)	(2,796)	(925)
Other assets and liabilities, net	(18,304)	5,233	(27,858)
Net cash provided by operating activities	97,636	144,479	107,376
Cash flows from investing activities:
Sale of investment securities	116,070	270,576	154,615
Maturities of investment securities	10,822	5,491	930
Purchase of investment securities	(117,211)	(214,146)	(305,731)
Proceeds from sale or liquidation of long-term investments	4,552	1,303	2,416
Purchase of long-term investments	(50)	(10,000)	(12,000)
Decrease (increase) in restricted assets	10,181	(6,889)	(872)
Investments in real estate ventures	(44,107)	(70,272)	(40,916)
Distributions from real estate ventures	33,204	17,563	7,309
Issuance of notes receivable	0	(4,410)	(8,250)
Proceeds from sale of fixed assets	45	4	4
Capital expenditures	(26,691)	(10,977)	(23,404)
Increase in cash surrender value of life insurance policies	(484)	(1,742)	(484)
Purchase of subsidiaries	(250)	0	(750)
Repayment of notes receivable	4,410	4,000	4,850
Purchase of preferred securities	0	0	(1,000)
Pay down of investment securities	9,212	8,739	1,849
Proceeds from sale of preferred securities	0	1,000	0
Investments in real estate held for sale	(245)	(12,603)	0
Net cash used in investing activities	(542)	(22,363)	(221,434)
Cash flows from financing activities:
Proceeds from issuance of debt	243,620	2,105	413,914
Repayments of debt	(5,365)	(6,684)	(12,601)
Deferred financing costs	(6,600)	(624)	(12,360)
Borrowings under revolver	144,294	153,361	886,130
Repayments on revolver	(110,614)	(167,915)	(898,788)
Dividends and distributions on common stock	(198,947)	(188,151)	(167,328)
Distributions to non-controlling interest	(11,545)	(3,280)	(9,339)
Contributions from non-controlling interest	248	813	0
Proceeds from exercise of Vector options	398	1,441	5,151
Tax benefit of options exercised	579	821	1,178
Net cash provided by (used in) financing activities	56,068	(208,113)	205,957
Net increase (decrease) in cash and cash equivalents	153,162	(85,997)	91,899
Cash and cash equivalents, beginning of year	240,368	326,365	234,466
Cash and cash equivalents, end of year	$ 393,530	$ 240,368	$ 326,365

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation:

The consolidated financial statements of Vector Group Ltd. (the “Company” or “Vector”) include the accounts of VGR Holding LLC (“VGR Holding”), Liggett Group LLC (“Liggett”), Vector Tobacco Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), Zoom E-Cigs LLC (“Zoom”), New Valley LLC (“New Valley”) and other less significant subsidiaries. New Valley includes the accounts of Douglas Elliman Realty, LLC (“Douglas Elliman”) and other less significant subsidiaries. All significant intercompany balances and transactions have been eliminated.

Liggett and Vector Tobacco are engaged in the manufacture and sale of cigarettes in the United States. Zoom is engaged in the sale of electronic cigarettes in the United States. New Valley is engaged in the real estate business.

Revisions to December 31, 2015 Consolidated Balance Sheet. In April 2015, the Financial Accounting Standards Board (“FASB") issued Accounting Standard Update (“ASU”) No. 2015-03, “Interest-Imputation of Interest”, which requires debt issuance costs to be reported in the balance sheet as a direct deduction from the face amount of the note. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015. This amendment must be applied retrospectively to all periods presented. The Company adopted the provisions of this ASU retrospectively in the first quarter of 2016, and adjusted all prior periods accordingly. The adoption of this ASU will simplify the presentation of debt issuance costs and reduce complexity without decreasing the usefulness of information provided to users of financial statements.

The cumulative impacts of the application of the new ASU are presented in the table below:



	December 31, 2015
	As Previously Reported			ASU Adoption			As Revised

Other assets	$	51,261		$	(30,141	)	$	21,120
Total assets	$	1,310,756		$	(30,141	)	$	1,280,615

Notes payable, long-term debt and other obligations, less current portion	$	886,249		$	(30,141	)	$	856,108
Total liabilities	1,432,917			(30,141		)	1,402,776
Total stockholders' deficiency	(122,161		)	—			(122,161		)
Total liabilities and stockholders' deficiency	$	1,310,756		$	(30,141	)	$	1,280,615

(b) Estimates and Assumptions:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Significant estimates subject to material changes in the near term include valuation of intangible assets, inventory valuation, promotional accruals, sales returns and allowances, actuarial assumptions of pension plans, the estimated fair value of embedded derivative liabilities, settlement accruals, valuation of investments, including other-than-temporary impairments to such investments, and litigation and defense costs. Actual results could differ from those estimates.

Cash includes cash on hand, cash on deposit in banks, and money market accounts. Cash equivalents is comprised of short-term investments which have an original maturity of 90 days or less. Interest on short-term investments is recognized when earned. The Company places its cash and cash equivalents with large commercial banks. The Federal Deposit Insurance Corporation (“FDIC”) and Securities Investor Protection Corporation (“SIPC”) insure these balances, up to $250 and $500, respectively. Substantially all of the Company’s cash balances at December 31, 2016 are uninsured.

(d) Financial Instruments:

The carrying value of cash and cash equivalents, restricted assets, accounts receivable and short-term loans approximate their fair value.

The fair value of the senior secured notes and the variable interest senior convertible debentures for the years ended December 31, 2016 and 2015 was estimated based on current market quotations.

As required by authoritative guidance, derivatives embedded within the Company’s convertible debt are recognized on the Company’s balance sheet and are stated at estimated fair value at each reporting period. Changes in the fair value of the embedded derivatives are reflected quarterly as “Changes in fair value of derivatives embedded within convertible debt.”

The estimated fair values for financial instruments presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair values.

(e) Investment Securities:

The Company classifies investments in debt and marketable equity securities as available for sale. Investments classified as available for sale are carried at fair value, with net unrealized gains and losses included as a separate component of stockholders’ deficiency. The cost of securities sold is determined based on average cost. Investments in marketable equity securities represent less than a 20 percent interest in the investees and the Company does not exercise significant influence over such entities.

Gains are recognized when realized in the Company’s consolidated statements of operations. Losses are recognized as realized or upon the determination of the occurrence of an other-than-temporary decline in fair value. The Company’s policy is to review its securities on a periodic basis to evaluate whether any security has experienced an other-than-temporary decline in fair value. If it is determined that an other-than-temporary decline exists in one of the Company’s marketable securities, it is the Company’s policy to record an impairment charge with respect to such investment in the Company’s consolidated statements of operations.

(f) Significant Concentrations of Credit Risk:

Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company places its temporary cash in money market securities (investment grade or better) with what management believes are high credit quality financial institutions.

Liggett’s customers are primarily candy and tobacco distributors and large grocery, drug and convenience store chains. Two customers, accounted for 16% and 14% of Liggett's revenues in 2016 and 19% and 10% in 2015. One customer accounted for 19% of Liggett's revenues in 2014. Concentrations of credit risk with respect to trade receivables are generally limited due to the large number of customers, located primarily throughout the United States, comprising Liggett’s customer base. Liggett’s two largest customers represented approximately 9% and 3%, respectively, of net accounts receivable at December 31, 2016 and 4% and 1%, respectively, at December 31, 2015. Liggett’s largest customer represented approximately 11% of net accounts receivable at December 31, 2014. Ongoing credit evaluations of customers’ financial condition are performed and, generally, no collateral is required. Liggett maintains reserves for potential credit losses and such losses, in the aggregate, have not exceeded management’s expectations.

(g) Accounts Receivable:

Accounts receivable-trade are recorded at their net realizable value. The allowance for doubtful accounts and cash discounts was $361 and $479 at December 31, 2016 and 2015, respectively. Uncollectible accounts are written off when the likelihood of collection is remote and when collection efforts have been abandoned.

(h) Inventories:

Tobacco inventories are stated at the lower of cost and net realizable value with cost determined primarily by the last-in, first-out (LIFO) method at Liggett and Vector Tobacco. Although portions of leaf tobacco inventories may not be used or sold within one year because of the time required for aging, they are included in current assets, which is common practice in the industry. It is not practicable to determine the amount that will not be used or sold within one year.

(i) Restricted Assets:

Current restricted assets of $7,330 and $9,195 at December 31, 2016 and 2015, respectively, consist primarily of certificates of deposits and supersedeas bonds. Long-term restricted assets of $3,986 and $12,303 at December 31, 2016 and 2015, respectively, consist primarily of certificates of deposit which collateralize letters of credit, supersedeas bonds and deposits on long-term debt. The certificates of deposit mature at various dates from February 2017 to August 2020. The carrying value of restricted assets approximate their fair value.

(j) Property, Plant and Equipment:

Property, plant and equipment are stated at cost. Property, plant and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets, which are 20 to 30 years for buildings and 3 to 10 years for machinery and equipment.

Repairs and maintenance costs are charged to expense as incurred. The costs of major renewals and betterments are capitalized. The cost and related accumulated depreciation of property, plant and equipment are removed from the accounts upon retirement or other disposition and any resulting gain or loss is reflected in operations.

The cost of leasehold improvements is amortized over the lesser of the related leases or the estimated useful lives of the improvements. Costs of major additions and betterments are capitalized, while expenditures for routine maintenance and repairs are charged to expense as incurred.

(k) Investments in Real Estate Ventures:

In accounting for its Investments in real estate ventures, the Company identified its participation in Variable Interest Entities (“VIE”), which are defined as entities in which the equity investors at risk have not provided enough equity at risk to finance its activities without additional subordinated support or the equity investors (1) cannot directly or indirectly make decisions about the entity’s activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest.

The Company's interest in VIEs is primarily in the form of equity ownership. The Company examines specific criteria and uses judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE's executive committee, existence of unilateral kick-out rights exclusive of protective rights or voting rights and level of economic disproportionality between the Company and its other partner(s).

Accounting guidance requires the consolidation of VIEs in which the Company is the primary beneficiary. The guidance requires consolidation of VIEs that an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

The Company's maximum exposure to loss in its investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs which is the carrying value. The Company's maximum exposure to loss in its investment in its consolidated VIEs is limited to its investment which is the carrying value of the investment net of the non-controlling interest. Creditors of the consolidated VIEs have no recourse to the general credit of the primary beneficiary.

(l) Goodwill and Other Intangible Assets:

Goodwill from acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in the Company’s acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) the Company’s strategies for growth in sales, income and cash flows.

Goodwill is tested for impairment at least annually as of October 1 and monitored for interim triggering events on an on-going basis. Other intangible assets with indefinite useful lives are not amortized, but rather, are tested for impairment at least annually. In evaluating goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, the Company considers individual factors such as macroeconomic conditions, changes in the industry and the markets in which the Company operates as well as the historical and expected future financial performance. If the Company concludes that it is more likely than not that fair value is less than its carrying value, recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of the reporting unit to the Company’s carrying amount. Fair value is determined based on an income approach and a market approach that are equally weighted. If the carrying amount of the reporting unit, including the goodwill, exceeds the fair value of the reporting unit, the second step is performed. The second step involves a comparison of the implied fair value and carrying value of the goodwill of the reporting unit. To the extent that the carrying amount exceeds the implied fair value of the goodwill, an impairment loss is recognized.

To determine the implied fair value of the Company’s indefinite-lived intangible asset, trademark, it utilizes the relief from royalty method, pursuant to which the asset is valued by reference to the amount of royalty income it would generate if licensed in an arm’s length transaction. Under the relief from royalty method, similar to the discounted cash flow method, estimated net revenues expected to be generated by the asset during its life are multiplied by a benchmark royalty rate and then discounted by the estimated weighted average cost of capital associated with the asset. The resulting capitalized royalty stream is an indication of the value of owning the asset. To the extent that the carrying amount exceeds the implied fair value of the intangible asset, an impairment loss is recognized.

The fair value of the intangible asset associated with the benefit under the Master Settlement Agreement (“MSA”) is calculated using discounted cash flows. This approach involves two steps: (i) estimating future cash savings due to the payment exemption under the MSA and (ii) discounting the resulting cash flow savings to determine fair value. This fair value is then compared with the carrying value of the intangible asset associated with the benefit under the MSA. To the extent that the carrying amount exceeds the implied fair value of the intangible asset, an impairment loss is recognized.

Intangible assets with finite lives are amortized over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below.

(m) Impairment of Long-Lived Assets:

The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs a test for recoverability, comparing projected undiscounted cash flows to the carrying value of the asset group to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on fair value of the asset on the basis of discounted cash flow. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal.

(n) Pension, Postretirement and Postemployment Benefits Plans:

The cost of providing retiree pension benefits, health care and life insurance benefits is actuarially determined and accrued over the service period of the active employee group. The Company recognizes the funded status of each defined benefit pension plan, retiree health care and other postretirement benefit plans and postemployment benefit plans on the balance sheet.

(o) Stock Options:

The Company accounts for employee stock compensation plans by measuring compensation cost for share-based payments at fair value at grant date. The fair value is recognized as compensation expense over the vesting period on a straight-line basis. The terms of certain stock options awarded under the 2014 Management Incentive Plan in February 2014 and under the 1999 Plan in November 2013, February 2013, December 2009 and January 2001 provide for common stock dividend equivalents (paid in cash at the same rate as paid on the common stock) with respect to the shares underlying the unvested portion of the options. The Company recognizes payments of the dividend equivalent rights on these options on the Company's consolidated balance sheet as reductions in additional paid-in capital until fully utilized and then accumulated deficit ($6,258, $5,566 and $4,612, net of income taxes, for the years ended December 31, 2016, 2015 and 2014, respectively), which are included as “Distributions and dividends on common stock” in the Company’s consolidated statement of stockholders’ deficiency.

(p) Income Taxes:

The Company accounts for income taxes under the liability method and records deferred taxes for the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes as well as tax credit carryforwards and loss carryforwards. These deferred taxes are measured by applying currently enacted tax rates. A valuation allowance reduces deferred tax assets when it is deemed more likely than not that some portion or all of the deferred tax assets will not be realized. A current tax provision is recorded for income taxes currently payable.

The Company accounts for uncertainty in income taxes by recognizing the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. If the tax position meets the more-likely-than-not recognition threshold, the tax effect is recognized at the largest amount of the benefit that is greater than 50% likely of being realized upon ultimate settlement. The guidance requires that a liability created for unrecognized deferred tax benefits shall be presented as a liability and not combined with deferred tax liabilities or assets. The Company classifies all tax-related interest and penalties as income tax expense.

(q) Distributions and Dividends on Common Stock:

The Company records distributions on its common stock as dividends in its consolidated statement of stockholders’ deficiency to the extent of retained earnings. Any amounts exceeding retained earnings are recorded as a reduction to additional paid-in-capital to the extent paid-in-capital is available and then to accumulated deficit. The Company’s stock dividends are recorded as stock splits and given retroactive effect to earnings per share for all years presented.

(r) Revenue Recognition:

Tobacco and E-Cigarettes sales: Revenues from sales are recognized upon the shipment of finished goods when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sale price is fixed or determinable and collectibility is reasonably assured. The Company provides an allowance for expected sales returns, net of any related inventory cost recoveries (e.g. federal excise taxes). Certain sales incentives, including promotional price discounts, are classified as reductions of net sales. The Company includes federal excise taxes on tobacco sales in revenues and cost of goods sold. Since the Company’s primary line of business is tobacco, the Company’s financial position and its results of operations and cash flows have been and could continue to be materially adversely affected by significant unit sales volume declines at the Company and industry levels, regulation, litigation and defense costs, increased tobacco costs or reductions in the selling price of cigarettes in the near term.

Tobacco Shipping and Handling Fees and Costs: Shipping and handling fees related to sales transactions are neither billed to customers nor recorded as revenue. Shipping and handling costs, which were $5,268 in 2016, $5,488 in 2015 and $5,585 in 2014 are recorded as operating, selling, administrative and general expenses.

Real estate sales: Revenue is recognized only when persuasive evidence of an arrangement exists, the price is fixed or determinable, the transaction has been completed and collectibility of the resulting receivable is reasonably assured. Real estate commissions earned by the Company’s real estate brokerage businesses are recorded as revenue on a gross basis upon the closing of a real estate transaction as evidenced when the escrow or similar account is closed, the transaction documents have been recorded and funds are distributed to all appropriate parties. Commissions expenses are recognized concurrently with related revenues. Property management fees and rental commissions earned are recorded as revenue when the related services are performed and the earnings process is complete.

(s) Advertising:

Tobacco and E-Cigarettes advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $3,397, $5,097 and $9,493 for the years ended December 31, 2016, 2015 and 2014, respectively.

Real estate advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $22,835, $25,657 and $14,952 for the years ended December 31, 2016 and 2015 and 2014, respectively.

(t) Comprehensive Income:

The Company presents net income and other comprehensive income in two separate, but consecutive, statements. The items are presented before related tax effects with detailed amounts shown for the income tax expense or benefit related to each component of other comprehensive income.

The components of accumulated other comprehensive loss, net of income taxes, were as follows:



	December 31, 2016			December 31, 2015			December 31, 2014
Net unrealized gains on investment securities available for sale, net of income taxes of $6,272, $7,758, and $12,706, respectively	$	9,869		$	12,048		$	18,102
Net unrealized losses on long-term investment accounted for under the equity method, net of income tax benefits of $0, $0, and $1,156, respectively	—			—			(1,658		)
Forward contracts adjustment, net of income taxes of $0, $11, and $36, respectively	(2		)	(19		)	(55		)
Pension-related amounts, net of income taxes of $14,491, $13,977, and $12,167, respectively	(21,112		)	(20,342		)	(17,732		)
Accumulated other comprehensive loss	$	(11,245	)	$	(8,313	)	$	(1,343	)

(u) Fair Value of Derivatives Embedded within Convertible Debt:

The Company has estimated the fair market value of the embedded derivatives based principally on the results of a valuation model. A readily determinable fair value of the embedded derivatives is not available. The estimated fair value of the derivatives embedded within the convertible debt is based principally on the present value of future dividend payments expected to be received by the convertible debt holders over the term of the debt. The discount rate applied to the future cash flows is estimated based on a spread in the yield of the Company’s debt when compared to risk-free securities with the same duration. The valuation model assumes future dividend payments by the Company and utilizes interest rates and credit spreads for secured to unsecured debt, unsecured to subordinated debt and subordinated debt to preferred stock to determine the fair value of the derivatives embedded within the convertible debt. The valuation also considers other items, including current and future dividends and the volatility of Vector’s stock price. At December 31, 2016, the range of estimated fair market values of the Company’s embedded derivatives was between $111,653 and $113,090. The Company recorded the fair market value of its embedded derivatives at the approximate midpoint of the range at $112,332 as of December 31, 2016. At December 31, 2015, the range of estimated fair market values of the Company’s embedded derivatives was between $143,422 and $144,660. The Company recorded the fair market value of its embedded derivatives at the midpoint of the range at $144,042 as of December 31, 2015. The estimated fair market value of the Company’s embedded derivatives could change significantly based on future market conditions. (See Note 9.)

(v) Capital and Credit Markets:

The Company has performed additional assessments to determine the impact, if any, of market developments, on the Company’s consolidated financial statements. The Company’s additional assessments have included a review of access to liquidity in the capital and credit markets, counterparty creditworthiness, value of the Company’s investments (including long-term investments, mortgage receivable and employee benefit plans) and macroeconomic conditions. The volatility in capital and credit markets may create additional risks in the upcoming months and possibly years and the Company will continue to perform additional assessments to determine the impact, if any, on the Company’s consolidated financial statements. Thus, future impairment charges may occur.

On a quarterly basis, the Company evaluates its investments to determine whether an impairment has occurred. If so, the Company also makes a determination of whether such impairment is considered temporary or other than temporary. The Company believes that the assessment of temporary or other-than-temporary impairment is facts-and-circumstances driven. However, among the matters that are considered in making such a determination are the period of time the investment has remained below its cost or carrying value, the likelihood of recovery given the reason for the decrease in market value and the Company’s original expected holding period of the investment.

(w) Contingencies:

The Company records Liggett’s product liability legal expenses as operating, selling, administrative and general expenses as those costs are incurred. As discussed in Note 15, legal proceedings covering a wide range of matters are pending or threatened in various jurisdictions against Liggett and the Company.

The Company and its subsidiaries record provisions in their consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable and the amount of loss can be reasonably estimated. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, except as disclosed in Note 15: (i) management has concluded that it is not probable that a loss has been incurred in any of the pending tobacco-related cases; or (ii) management is unable to estimate the possible loss or range of loss that could result from an unfavorable outcome of any of the pending tobacco-related cases and, therefore, management has not provided any amounts in the consolidated financial statements for unfavorable outcomes, if any. Legal defense costs are expensed as incurred.

Except as discussed in Note 15, management is unable to estimate the possible loss or range of loss from remaining Engle progeny cases as there are currently multiple defendants in each case and discovery has not occurred or is limited. As a result, the Company lacks information about whether plaintiffs are, in fact, Engle class members (non-class members’ claims are generally time-barred), the relevant smoking history, the nature of the alleged injury and the availability of various defenses, among other things. Further, plaintiffs typically do not specify their demand for damages. Litigation is subject to many uncertainties, and it is possible that the Company’s consolidated financial position, results of operations or cash flows could be materially adversely affected by an unfavorable outcome in any such tobacco-related litigation.

(x) Other, Net:

Other, net consists of:



	Year Ended
	December 31,
	2016			2015			2014
Interest and dividend income	$	6,018		$	7,038		$	5,803
Out-of-period adjustment	—			—			1,231
Acceleration of closing fee related to termination of Douglas Elliman joint venture	—			—			2,335
Impairment of real estate, net	—			(230		)	—
Loss on sale of assets	—			(78		)	—
Gain on long-term investment	190			390			—
Impairment of long-term investments	(1,203		)	(811		)	—
Other (expense) income	(273		)	100			27
Other, net	$	4,732		$	6,409		$	9,396

The out-of-period adjustment related to a non-accrual of a receivable from Douglas Elliman in the fourth quarter of 2013 and would have increased the Company's gain on acquisition of Douglas Elliman in 2013. The Company assessed the materiality of this error on all previously issued consolidated financial statements and concluded that the error was immaterial to all previously issued consolidated financial statements. The impact of correcting this error in 2014 was not material to the Company's 2014 consolidated financial statements.

(y) Other Current Liabilities:

Other current liabilities consists of:



	December 31, 2016		December 31, 2015
Accounts payable	$	10,573	$	19,639
Accrued promotional expenses	23,763		24,816
Accrued excise and payroll taxes payable, net	10,044		26,556
Accrued interest	35,449		28,147
Commissions payable	6,164		11,008
Accrued salaries and benefits	26,958		22,774
Other current liabilities	22,901		21,277
Total other current liabilities	$	135,852	$	154,217

(z) New Accounting Pronouncements:

In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230) ("ASU 2016-18"). ASU 2016-18 provides guidance on the classification of restricted cash to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. This pronouncement is effective for reporting periods beginning after December 15, 2017 using a retrospective adoption method and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2016-18 will have on the Company’s consolidated financial statements.

In October 2016, the FASB issued ASU 2016-17, Interests Held through Related Parties That Are under Common Control (“ASU 2016-17”). ASU 2016-17 modifies existing guidance with respect to how a decision maker that holds an indirect interest in a VIE through a common control party determines whether it is the primary beneficiary of the VIE as part of the analysis of whether the VIE would need to be consolidated. Under ASU 2016-17, a decision maker would need to consider only its proportionate indirect interest in the VIE held through a common control party. As a result of ASU 2016-17, in certain cases, previous consolidation conclusions may change. ASU 2016-17 is effective for the Company's fiscal year beginning January 1, 2017 with retrospective application to January 1, 2016. The Company is currently assessing the impact the adoption of ASU 2016-17 will have on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 is intended to reduce diversity in practice on how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard provides guidance in a number of situations including, among others, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. ASU 2016-15 also provides guidance for classifying cash receipts and payments that have aspects of more than one class of cash flows. ASU 2016-15 is effective for the Company's fiscal year beginning January 1, 2018. Early adoption is permitted. The standard requires application using a retrospective transition method. The Company is currently assessing the impact the adoption of ASU 2016-15 will have on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 modifies U.S. GAAP by requiring the following, among others: (1) all excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit on the income statement (excess tax benefits are recognized regardless of whether the benefit reduces taxes payable in the current period); (2) excess tax benefits are to be classified along with other income tax cash flows as an operating activity in the statement of cash flows; (3) in the area of forfeitures, an entity can still follow the current U.S. GAAP practice of making an entity-wide accounting policy election to estimate the number of awards that are expected to vest or may instead account for forfeitures when they occur; and (4) classification as a financing activity in the statement of cash flows of cash paid by an employer to the taxing authorities when directly withholding shares for tax withholding purposes. ASU 2016-09 is effective for the Company's fiscal year beginning January 1, 2017, including interim periods. Early application is permitted. The Company is currently assessing the impact the adoption of ASU 2016-09 will have on the Company's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 does not change the core principle of the guidance stated in ASU 2014-09, instead, the amendments in this ASU are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations and whether an entity reports revenue on a gross or net basis. ASU 2016-08 will have the same effective date and transition requirements as the new revenue standard issued in ASU 2014-09. The Company is currently assessing the impact the adoption of ASU 2016-08 and ASU 2014-09 will have on the Company's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-07, Investments- Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 will be effective for the Company’s fiscal year beginning January 1, 2017 and subsequent interim periods. The Company will apply the guidance prospectively for all future applications of the equity method of previously held investments subsequent to the adoption date.

In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (a consensus of the Emerging Issues Task Force) (“ASU 2016-06”). ASU 2016-06 clarifies the requirement for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under ASU 2016-06 is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments in ASU 2016-06 are effective for the Company's fiscal year beginning January 1, 2017, including interim periods. The Company is currently evaluating the method and impact the adoption of ASU 2016-06 will have on the Company's consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. Accounting for lessors remains largely unchanged from current U.S. GAAP. ASU 2016-02 will be effective for the Company’s fiscal year beginning January 1, 2019 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on the Company's consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments -- Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is evaluating the effect that this guidance will have on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combination (Topic 805): Simplifying the Accounting for Measurement Period Adjustments (“ASU 2015-16”), which requires adjustments to provisional amounts initially recorded in a business combination that are identified during the measurement period to be recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-15 also requires the disclosure of the nature and amount of measurement-period adjustments recognized in the current period, including separately the amounts in current-period income statement line items that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The guidance is effective for the Company beginning January 1, 2016. The Company will apply the guidance prospectively for all business combinations that occur subsequent to the adoption date.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40)-Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance to U.S. GAAP about management’s responsibility to evaluate whether there is a substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Specifically, ASU 2014-15 (1) defines the term substantial doubt, (2) requires an evaluation of every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plan, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for annual periods beginning after December 15, 2016 and interim periods within those reporting periods. Earlier adoption is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the Company’s consolidated financial statements.

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-09”). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted for annual reporting periods beginning subsequent to December 15, 2016. The new standard is required to be applied retrospectively to each prior reporting period presented or with the cumulative effect of initially applying it recognized at the date of initial application. The Company is evaluating the effect of the adoption of ASU 2014-09 will have on its consolidated financial statements.

Earnings Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Information concerning the Company’s common stock has been adjusted to give retroactive effect to the 5% stock dividends paid to Company stockholders on September 29, 2016, September 29, 2015 and September 26, 2014. All per share amounts and references to share amounts have been updated to reflect the retrospective effect of the stock dividends. The dividends were recorded at par value of $609 in 2016, $584 in 2015 and $520 in 2014, since the Company did not have retained earnings in each of the aforementioned years. In connection with the 5% stock dividends, the Company increased the number of shares subject to outstanding stock options by 5% and reduced the exercise prices accordingly.

For purposes of calculating basic earnings per share (“EPS”), net income available to common stockholders attributed to Vector Group Ltd. for the period are reduced by the contingent interest and the non-cash interest expense associated with the discounts created by the beneficial conversion features and embedded derivatives related to the Company’s convertible debt issued. The convertible debt issued by the Company are participating securities due to the contingent interest feature and had no impact on EPS for the years ended December 31, 2016, 2015 and 2014 as the dividends on the common stock reduced earnings available to common stockholders so there were no unallocated earnings.

As discussed in Note 14, the Company has stock option awards which provide for common stock dividend equivalents at the same rate as paid on the common stock with respect to the shares underlying the unexercised portion of the options. These outstanding options represent participating securities under authoritative guidance. The Company recognizes payments of the dividend equivalent rights ($6,258, net of income taxes of $435, $5,566, net of income taxes of $211, and $4,612, net of income taxes of $306, for the years ended December 31, 2016, 2015 and 2014, respectively) on these options as reductions in additional paid-in capital on the Company’s consolidated balance sheet. As a result, in its calculation of basic EPS for the years ended December 31, 2016, 2015 and 2014, respectively, the Company has adjusted its net income for the effect of these participating securities as follows:



	2016			2015			2014
Net income attributed to Vector Group Ltd.	$	71,127		$	59,198		$	36,856
Income attributable to participating securities	(2,241		)	(1,752		)	(1,024		)
Net income available to common stockholders attributed to Vector Group Ltd.	$	68,886		$	57,446		$	35,832

Basic EPS is computed by dividing net income available to common stockholders attributed to Vector Group Ltd. by the weighted-average number of shares outstanding, which includes vested restricted stock.

Diluted EPS includes the dilutive effect of non-vested restricted stock grants, stock options and convertible securities. Diluted EPS is computed by dividing net income available to common stockholders by the diluted weighted-average number of shares outstanding, which includes dilutive non-vested restricted stock grants, stock options and convertible securities.

Basic and diluted EPS were calculated using the following shares for the years ended December 31, 2016, 2015 and 2014:



	2016	2015	2014
Weighted-average shares for basic EPS	124,031,786	123,648,565	113,479,170
Plus incremental shares related to stock options and non-vested restricted stock	227,790	33,632	70,069
Weighted-average shares for diluted EPS	124,259,576	123,682,197	113,549,239

The following non-vested restricted stock and shares issuable upon the conversion of convertible debt were outstanding during the years ended December 31, 2016, 2015 and 2014 but were not included in the computation of diluted EPS because the exercise prices of the options and the per share expense associated with the restricted stock were greater than the average market price of the common shares during the respective periods, and the impact of common shares issuable under the convertible debt were anti-dilutive to EPS.



	Year Ended December 31,
	2016		2015		2014
Weighted-average number of shares issuable upon conversion of debt	26,140,250		26,369,018		33,827,057
Weighted-average conversion price	$	18.70	$	18.62	$	16.03

The Company’s convertible debt was anti-dilutive in 2016, 2015 and 2014.

Investment Securities Available for Sale

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Investment Securities Available for Sale

INVESTMENT SECURITIES AVAILABLE FOR SALE

The components of investment securities available for sale at December 31, 2016 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable equity securities	$	34,956	$	16,141	$	(254	)	$	50,843
Mutual funds invested in fixed income securities	20,507		81		(6		)	20,582
Marketable debt securities	85,297		181		—			85,478
Total investment securities available for sale	$	140,760	$	16,403	$	(260	)	$	156,903

The components of investment securities available for sale at December 31, 2015 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable equity securities	$	47,502	$	19,833	$	(62	)	$	67,273
Mutual funds invested in fixed income securities	20,126		—		(15		)	20,111
Marketable debt securities	94,540		52		—			94,592
Total investment securities available for sale	$	162,168	$	19,885	$	(77	)	$	181,976

The table below summarizes the maturity dates of marketable debt securities at December 31, 2016.



Investment Type:	Fair Value		Under 1 Year		1 Year up to 5 Years		More than 5 Years
U.S. Government securities	$	30,642	$	—	$	30,642	$	—
Corporate securities	36,687		4,364		32,173		150
U.S. mortgage-backed securities	6,500		—		36		6,464
Commercial mortgage-backed securities	1,398		—		—		1,398
Commercial paper	8,980		8,980		—		—
Index-linked U.S. bonds	770		—		770		—
Foreign fixed-income securities	501		$	—	$	501	$	—
Total marketable debt securities by maturity dates	$	85,478	$	13,344	$	64,122	$	8,012

The available-for-sale investment securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:



	In loss position for
	Less than 12 months					12 months or more
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Total Fair Value		Total Unrealized Losses
December 31, 2016
Marketable equity securities	$	5,746	$	(254	)	$	—	$	—	$	5,746	$	(254	)
Mutual funds invested in fixed income securities	10,253		(6		)					10,253		(6		)
	$	15,999	$	(260	)	$	—	$	—	$	15,999	$	(260	)

December 31, 2015
Marketable equity securities	$	5,938	$	(62	)	$	—	$	—	$	5,938	$	(62	)
Mutual funds invested in fixed income securities	10,053		(15		)	—		—		10,053		(15		)
	$	15,991	$	(77	)	$	—	$	—	$	15,991	$	(77	)

Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Unrealized losses from equity and debt securities are due to market price movements. The Company believes the unrealized losses associated with the Company's equity securities will be recovered in the future.

Gross realized gains and losses on available-for-sale investment securities were as follows:



	Year Ended December 31,
	2016			2015			2014
Gross realized gains on sales	$	3,408		$	13,727		$	275
Gross realized losses on sales	(501		)	(2,589		)	(286		)
Gains (losses) on sale of investment securities available for sale	$	2,907		$	11,138		$	(11	)

Other-than-temporary impairments	$	(5,381	)	$	(12,846	)	$	—

The Company recorded an “Other-than-temporary-impairment” charge of $5,381 and $12,846 for the year ended December 31, 2016 and 2015, respectively. No impairment was recorded for the year ended December 31, 2014. The largest components of these total charges were $4,772 and $6,895 for the year ended December 31, 2016 and 2015, respectively, related to Morgans Hotel Group Co. (“MHGC”), a company where Vector's President and Chief Executive Officer also served as Chairman of the Board of Directors. On December 1, 2016, MHGC merged with another company and, as a result, the common shares of MHGC ceased to be outstanding and were converted into the right to receive $2.25 in cash. The Company received $5,535 for its investment in MHGC and recorded a gain of $2,140, after recognizing an impairment charge of $4,772 in the first quarter of 2016.

Although management generally does not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing the Company's investment securities portfolio, management may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements and the funding of claims and obligations to policyholders.

Proceeds from investment securities sales totaled $116,070, $270,576 and $154,615 and proceeds from early redemptions by issuers totaled $20,034, $14,230 and $2,779 for the years ended December 31, 2016, 2015 and 2014, respectively, mainly from sales of Corporate securities and U.S. Government securities.

The entire disclosure for investments in certain debt and equity securities.

Property, Plant and Equipment [Abstract]

Inventories

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories consist of:



	December 31, 2016			December 31, 2015
Leaf tobacco	$	46,253		$	49,856
Other raw materials	3,733			3,578
Work-in-process	633			789
Finished goods	65,052			61,493
E-Cigarettes	—			80
Inventories at current cost	115,671			115,796
LIFO adjustments	(25,837		)	(29,280		)
	$	89,834		$	86,516

All of the Company’s inventories, excluding amounts related to prepaid MSA cost and federal excise taxes, at December 31, 2016 and 2015 have been reported under the LIFO method. The $25,837 LIFO adjustment as of December 31, 2016 decreases the current cost of inventories by $17,632 for Leaf tobacco, $214 for Other raw materials, $29 for Work-in-process, and $7,962 for Finished goods. The $29,280 LIFO adjustment as of December 31, 2015 decreased the current cost of inventories by $19,863 for Leaf tobacco, $643 for Other raw materials, $33 for Work-in-process, $8,736 for Finished goods and $5 for E-Cigarettes. Cost of goods sold was reduced by $211 and $1,703 for the year ended December 31, 2016 and December 31, 2015, respectively, due to liquidations of LIFO inventories.

The Company has a leaf inventory management program whereby, among other things, it is committed to purchase certain quantities of leaf tobacco. The purchase commitments are for quantities not in excess of anticipated requirements and are at prices, including carrying costs, established at the commitment date. At December 31, 2016, Liggett had tobacco purchase commitments of approximately $10,874. The Company has a single source supply agreement for reduced ignition propensity cigarette paper through 2019.

The Company capitalizes the incremental prepaid cost of the MSA and federal excise taxes in ending inventory. Each year, the Company capitalizes in inventory that portion of its MSA liability that relates to cigarettes shipped to the public warehouses but not sold. The amount of capitalized MSA cost in “Finished goods” inventory was $17,364 and $15,796 at December 31, 2016 and 2015, respectively. Federal excise tax in inventory was $25,888 at December 31, 2016 and $23,455 at December 31, 2015.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of:



	December 31, 2016			December 31, 2015
Land and improvements	$	1,442		$	1,442
Buildings	16,010			15,908
Machinery and equipment	184,623			178,131
Leasehold improvements	32,419			21,142
	234,494			216,623
Less accumulated depreciation and amortization	(154,046		)	(140,991		)
	$	80,448		$	75,632

Depreciation and amortization expense related to property, plant and equipment for the years ended December 31, 2016, 2015 and 2014 was $20,782, $20,423 and $17,843, respectively.

Future machinery and equipment purchase commitments at Liggett were $805 and $832 at December 31, 2016 and 2015, respectively.

Long-Term Investments

12 Months Ended

Dec. 31, 2016

Long-term Investments [Abstract]

Long-Term Investments

LONG-TERM INVESTMENTS

Long-term investments consisted of the following:



	December 31, 2016		December 31, 2015
Investments accounted at cost	$	35,476	$	41,231
Investments accounted under the equity method	17,721		21,495
	$	53,197	$	62,726

(a) Cost-Method Investments:

Long-term investments accounted at cost consisted of the following:



	December 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Investment partnerships	$	34,975	$	40,569	$	40,730	$	44,217
Real estate partnership	501		494		501		552
	$	35,476	$	41,063	$	41,231	$	44,769

The principal business of the investment partnerships is investing in investment securities and real estate. The estimated fair value of the investment partnerships was provided by the partnerships based on the indicated market values of the underlying assets or investment portfolio. The investments in these investment partnerships are illiquid and the ultimate realization of these investments is subject to the performance of the underlying partnership and its management by the general partners. In the future, the Company may invest in other investments, including limited partnerships, real estate investments, equity securities, debt securities, derivatives and certificates of deposit, depending on risk factors and potential rates of return.

If it is determined that an other-than-temporary decline in fair value exists in long-term investments, the Company records an impairment charge with respect to such investment in its consolidated statements of operations. The Company will continue to perform additional assessments to determine the impact, if any, on the Company’s consolidated financial statements. Thus, future impairment charges may occur.

The Company has accounted for these investments using the cost method of accounting because the investments did not meet the requirements for equity method accounting.

The Company invested an aggregate $5,000 in three additional investment partnerships in 2015. The principal business of these investment partnerships is investing in investment securities. The Company also invested $5,000 in a reinsurance company in 2015. The Company received cash distributions of $4,741, $587 and $549 from limited partnerships in 2016, 2015 and 2014, respectively.

The long-term investments are carried on the consolidated balance sheet at cost. The fair value determination disclosed above

would be classified as Level 3 under fair value hierarchy disclosed in Note 18 if such assets were recorded on the consolidated balance sheet at fair value. The fair value determinations disclosed above were based on company assumptions, and information obtained from the partnerships based on the indicated market values of the underlying assets of the investment portfolio.

(b) Equity-Method Investments:

Long-term investments accounted for under the equity method consisted of the following:



	December 31, 2016		December 31, 2015
Indian Creek Investors LP ("Indian Creek")	$	5,248	$	4,989
Boyar Value Fund ("Boyar")	7,816		7,302
Ladenburg Thalmann Financial Services Inc. ("LTS")	4,657		9,204
Castle Brands, Inc. ("Castle")	—		—
	$	17,721	$	21,495

At December 31, 2016, the Company's ownership percentages in Indian Creek, Boyar, LTS and Castle were 20.22%, 31.99%, 8.28% and 7.88%, respectively. The Company accounted for Indian Creek and Boyar interests as equity-method investments because the Company's ownership percentage meets the threshold for equity-method accounting. The Company accounted for the LTS and Castle interests as equity-method investments because the Company has the ability to exercise significant influence over their operating and financial policies.

The value of Boyar, based on the quoted market price as of December 31, 2016, was $7,816, equal to its carrying value. Ladenburg Thalmann Fund Management, LLC, an indirect subsidiary of LTS, is the manager of Boyar.

At December 31, 2016, the aggregate values of the LTS and Castle investments, based on the quoted market price, were $37,067 and $9,630, respectively. The difference between the amount at which the LTS and Castle investments are carried and the amount of underlying equity in net assets was $24,431 and $1,857, respectively. This basis difference represents other direct financial activities and is being accounted for as part of the equity investment.

The principal business of Indian Creek is investing in investment securities. Fair value approximates carrying value. The estimated fair value of the investment partnership was provided by the partnership based on the indicated market values of the underlying assets or investment portfolio. The investment in the investment partnership is illiquid and the ultimate realization of the investment is subject to the performance of the underlying partnership and its management by the general partners.

The Company received cash distributions of $1,158, $2,364 and $3,283 from the Company's investments in long-term investments under the equity method in 2016, 2015 and 2014, respectively. The Company recognized equity in losses in long-term investments under the equity method of $2,754 and $2,681 in 2016 and 2015, respectively. The Company recognized equity in earnings in long-term investments under the equity method of $3,140 in 2014. The Company has suspended its recognition of equity in losses in Castle to the extent such losses exceed its basis.

The long-term investments are carried on the consolidated balance sheet at cost under the equity method of accounting. The fair value determination disclosed above would be classified as Level 3 under fair value hierarchy disclosed in Note 18 if such assets were recorded on the consolidated balance sheet at fair value.

Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for Indian Creek and Boyar.



	December 31, 2016		December 31, 2015
Investment securities	$	67,546	$	40,676
Cash and cash equivalents	33		101
Other assets	28		8,664
Total assets	$	67,607	$	49,441

Other liabilities	$	17,216	$	408
Total liabilities	17,216		408
Partners' capital	50,391		49,033
Total liabilities and partners' capital	$	67,607	$	49,441



	Year Ended December 31,
	2016			2015			2014
Investment income	$	438		$	565		$	3,314
Expenses	(684		)	(868		)	(1,298		)
Net investment (loss) income	(246		)	(303		)	2,016
Total net realized gain (loss) and net change in unrealized depreciation from investments	3,341			(14,809		)	(168		)
Net increase (decrease) in partners' capital resulting from operations	$	3,095		$	(15,112	)	$	1,848

Pursuant to Rule 4-08(g), the following summarized financial data is presented for LTS. The Company has elected a three-month lag reporting period for LTS.



	September 30, 2016			September 30, 2015
Cash and cash equivalents	$	105,989		$	114,548
Receivables from clearing brokers, note receivable and other receivable, net	115,887			115,334
Goodwill and intangible assets, net	251,411			269,774
Other assets	70,469			63,634
Total assets	$	543,756		$	563,290

Accrued compensation, commissions and fees payable	$	76,191		$	72,936
Accounts payable and accrued liabilities	37,189			24,615
Notes payable, net of $1,001 and $1,655 unamortized discount in 2016 and 2015, respectively	48,364			59,184
Other liabilities	30,716			21,487
Total liabilities	192,460			178,222
Preferred stock	1			1
Common stock	19			19
Additional paid-in capital	509,335			517,988
Accumulated deficit	(158,055		)	(132,952		)
Total controlling shareholders' equity	351,300			385,056
Non-controlling interest	(4		)	12
Total shareholders' equity	351,296			385,068
Total liabilities and shareholders' equity	$	543,756		$	563,290

(1) The table above presents the nature and amounts of the major components of assets and liabilities, along with information regarding redeemable stock and non-controlling interest.



	Twelve Months Ended September 30,
	2016			2015			2014
Revenues	$	1,104,227		$	1,122,735		$	867,756
Expenses	(1,119,366		)	(1,132,010		)	(856,072		)
Gross (loss) profit	(15,139		)	(9,275		)	11,684
Change in fair value of contingent consideration	(154		)	31			12
(Loss) income from continuing operations	(15,293		)	(9,244		)	11,696
Net (loss) income	$	(25,159	)	$	4,396		$	22,482

Pursuant to Rule 4-08(g), the following summarized financial data is presented for Castle. The Company has elected a three-month lag reporting period for Castle.



	September 30, 2016		September 30, 2015
Current assets	$	42,285	$	36,922
Non-current assets	9,085		9,845
Total assets	$	51,370	$	46,767

Current liabilities	$	12,583	$	9,947
Non-current liabilities	15,215		13,696
Total liabilities	27,798		23,643
Total controlling shareholders' equity	19,838		19,978
Non-controlling interest	3,734		3,146
Total shareholders' equity	23,572		23,124
Total liabilities and shareholders' equity	$	51,370	$	46,767



	Twelve Months Ended September 30,
	2016			2015			2014
Revenues	$	73,549		$	67,143		$	51,426
Expenses	(44,236		)	(41,317		)	(32,495		)
Gross profit	29,313			25,826			18,931
Other expenses	(28,338		)	(25,920		)	(20,399		)
Income (loss) from continuing operations	975			(94		)	(1,468		)
Net loss	$	(1,263	)	$	(2,946	)	$	(4,845	)

New Valley LLC

12 Months Ended

Dec. 31, 2016

Real Estate [Abstract]

New Valley LLC

NEW VALLEY LLC

(a) Investments in real estate ventures.

New Valley also holds equity investments in various real estate projects domestically and internationally. The majority of New Valley's investment in real estate ventures were located in the New York City Standard Metropolitan Statistical Area ("SMSA"). New Valley aggregated the disclosure of its investments in real estate ventures by property type and operating characteristics.

The components of “Investments in real estate ventures” were as follows:



	Range of Ownership	December 31, 2016		December 31, 2015
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	131,770	$	138,247
All other U.S. areas	15.0% - 48.5%	40,950		25,776
		172,720		164,023
Apartment Buildings:
All other U.S. areas	7.6% - 16.3%	8,287		15,754
		8,287		15,754
Hotels:
New York City SMSA	5.2%	21,895		19,697
International	49.0%	3,037		10,228
		24,932		29,925
Commercial:
New York City SMSA	49.0%	3,290		5,449
All other U.S. areas	2.1%	10,000		—
		13,290		5,449

Other	50.0%	2,029		2,017
Investments in real estate ventures		$	221,258	$	217,168

Contributions

New Valley made contributions to its investments in real estate ventures as follows:



	December 31, 2016		December 31, 2015
Condominium and Mixed Use Development:
New York City SMSA	$	5,661	$	48,232
All other U.S. areas	23,874		12,836
	29,535		61,068
Hotels:
New York City SMSA	4,082		1,896
International	490		1,377
	4,572		3,273
Commercial:
New York City SMSA	—		5,931
All other U.S. areas	10,000		—
	10,000		5,931

Total contributions	$	44,107	$	70,272

During the year-ended December 31, 2016, New Valley did not make certain capital contributions to Monad Terrace. This resulted in a change in ownership percentage from 31.3% to 24.3%. For other ventures where New Valley previously held an investment, New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners during the years ended December 31, 2016 and December 31, 2015. New Valley's direct investment percentage for these ventures did not change.

Distributions

New Valley received distributions from its investments in real estate ventures as follows:



	December 31, 2016			December 31, 2015
Condominium and Mixed Use Development:
New York City SMSA	$	(27,574	)	$	(18,787	)
All other U.S. areas	(10,336		)	—
	(37,910		)	(18,787		)
Apartment Buildings:
All other U.S. areas	(9,055		)	(3,290		)
	(9,055		)	(3,290		)
Hotels:
International	(8,120		)	—
	(8,120		)	—
Commercial:
New York City SMSA	(515		)	(480		)
	(515		)	(480		)

Other	(1,050		)	(900		)
Total distributions	$	(56,650	)	$	(23,457	)

Of the distributions received by New Valley from its investment in real estate ventures, $23,446 and $5,894 were from distributions of earnings and $33,204 and $17,563 were a return of capital for the years ended December 31, 2016 and December 31, 2015, respectively.

Equity in Earnings (Losses) from Real Estate Ventures

New Valley recognized equity in earnings (losses) from real estate ventures as follows:



	December 31, 2016			December 31, 2015			December 31, 2014
Condominium and Mixed Use Development:
New York City SMSA	$	7,432		$	4,533		$	7,806
All other U.S. areas	(1,793		)	(869		)	100
	5,639			3,664			7,906
Apartment Buildings:
All other U.S. areas	1,588			527			341
	1,588			527			341
Hotels:
New York City SMSA	(1,884		)	(1,540		)	(2,643		)
International	439			(1,594		)	(1,612		)
	(1,445		)	(3,134		)	(4,255		)
Commercial:
New York City SMSA	(1,644		)	(2		)	—
	(1,644		)	(2		)	—

Other	1,062			946			111
Total equity in earnings from real estate ventures	$	5,200		$	2,001		4,103

Investment in Real Estate Ventures Entered Into During 2016

In July 2016, New Valley entered into a newly created joint venture related to the 20 Times Square project. The joint venture is a variable interest entity, however, New Valley is not the primary beneficiary. New Valley accounts for its interest in the joint venture under the equity method of accounting and has combined this investment with the existing 20 Times Square venture carrying balance.

In August 2016, New Valley entered into a newly created joint venture related to the 87 Park project. The joint venture is a variable interest entity, however, New Valley is not the primary beneficiary. New Valley accounts for its interest in the joint venture under the equity method of accounting and has combined this investment with the existing 87 Park venture carrying balance.

In December 2016, New Valley invested $10,000 for an approximate 2.1% interest in Wynn/CA JV, LLC. The purpose of the joint venture is to own and operate retail space in the Wynn Resort in Las Vegas, Nevada. The joint venture is a variable interest entity; however, New Valley is not the primary beneficiary. New Valley accounts for this investment under the equity method of accounting. New Valley's maximum exposure to loss as a result of its investment in Wynn Las Vegas Retail was $10,000 at December 31, 2016.

VIE Consideration

It was determined that New Valley is the primary beneficiary of two joint ventures as New Valley controls the activities that most significantly impact economic performance of the entities. Therefore, New Valley consolidates these VIEs.

The carrying amount of the consolidated VIEs' assets were $14,385 and $13,702 for the years ended December 31, 2016 and 2015, respectively. Those assets are owned by the VIEs, not the Company. Neither of the consolidated VIEs had non-recourse liabilities as of December 31, 2016 and 2015. A VIE's assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company's senior notes and other debts payable.

For the remaining investments in real estate ventures, New Valley determined that the entities were variable interest entities but New Valley was not the primary beneficiary.

Maximum Exposure to Loss

New Valley's maximum exposure to loss was as follows:



	December 31, 2016
Condominium and Mixed Use Development:
New York City SMSA	$	133,335
All other U.S. areas	46,712
	180,047
Apartment Buildings:
All other U.S. areas	8,287
	8,287
Hotels:
New York City SMSA	21,895
International	3,037
	24,932
Commercial:
New York City SMSA	3,290
All other U.S. areas	10,000
	13,290
Other	2,029
Total maximum exposure to loss	$	228,585

New Valley capitalized $11,433 and $9,928 of interest expense into the carrying value of its ventures whose projects were currently under development during the years ended December 31, 2016 and December 31, 2015, respectively.

Douglas Elliman has been engaged by the developers as the sole broker or the co-broker for several of the real estate development projects that New Valley owns an interest in through its joint venture investments. Douglas Elliman had gross commissions of approximately $15,078 and $3,077 from these projects for the years ended December 31, 2016 and December 31, 2015, respectively.

(b) Combined Financial Statements for Unconsolidated Subsidiaries:

Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for the following entities: Condominium and Mixed Use Development (10 Madison West , The Marquand, 11 Beach Street, 160 Leroy Street, 215 Chrystie Street, Queens Plaza South, 111 Murray Street, 87 Park, 20 Times Square, 25-19 43rd Avenue - The Dutch LIC, 76 Eleventh Avenue, Monad Terrace, West Hollywood Edition and 125 Greenwich Street) Apartment Buildings (ST Portfolio and Maryland Portfolio), Hotels (Coral Beach, Park Lane Hotel, and Hotel Taiwana) and Commercial (Harmon Meadow and Wynn Las Vegas Retail). New Valley has elected a one-month lag reporting period for 10 Madison West, Hotel Taiwana, 11 Beach Street, Maryland Portfolio, 20 Times Square, 160 Leroy Street, 215 Chrystie Street, 87 Park, 125 Greenwich Street, Harmon Meadow, Monad Terrace, Park Lane Hotel, ST Portfolio, Coral Beach, West Hollywood Edition and Wynn Las Vegas Retail. New Valley has elected a three month lag reporting period for The Marquand, Queens Plaza South, 111 Murray Street, 25-19 43rd Avenue - The Dutch LIC and 76 Eleventh Avenue.

Condominium and Mixed Use Development:



	Year Ended December 31,
	2016		2015		2014
Income Statement
Revenue	$	511,844	$	141,884	$	182,635
Cost of Goods Sold	303,020		92,837		96,993
Other Expenses	42,566		10,672		6,798
Income from continuing operations	$	166,258	$	38,375	$	78,844



	December 31, 2016		December 31, 2015
Balance Sheets
Investment in real estate	$	3,413,928	$	2,921,611
Total assets	3,786,206		3,237,835
Total debt	2,478,574		2,014,682
Total liabilities	2,687,351		2,195,940
Non controlling interest	564,194		535,573

Apartment & Office Buildings:



	Year Ended December 31,
	2016		2015		2014
Income Statement
Revenue	$	87,225	$	83,871	$	85,704
Other Expenses	83,117		75,384		86,153
Income from continuing operations	$	4,108	$	8,487	$	(449	)



	December 31, 2016			December 31, 2015
Balance Sheets
Investment in real estate	$	488,732		$	590,331
Total assets	522,459			626,513
Total debt	475,668			512,479
Total liabilities	484,377			529,692
Non controlling interest	(9,931		)	(4,463		)

Hotels:



	Year Ended December 31,
	2016			2015			2014
Income Statement
Revenue	$	81,517		$	83,324		$	82,899
Cost of Goods Sold	4,262			3,837			3,064
Other Expenses	114,582			112,069			133,258
Loss from continuing operations	$	(37,327	)	$	(32,582	)	$	(53,423	)



	December 31, 2016		December 31, 2015
Balance Sheets
Investment in real estate	$	781,461	$	824,753
Total assets	854,559		894,447
Total debt	491,200		511,029
Total liabilities	509,385		538,426
Non controlling interest	312,113		294,470

Commercial:



	Year Ended December 31,
	2016			2015			2014
Income Statement
Revenue	$	8,410		$	5,638
Other Expenses	11,195			5,642
Loss from continuing operations	$	(2,785	)	$	(4	)	$	—



	December 31, 2016		December 31, 2015
Balance Sheets
Investment in real estate	$	61,091	$	65,398
Total assets	74,512		67,343
Total debt	55,625		55,624
Total liabilities	57,601		56,415

Other:



	Year Ended December 31,
	2016		2015		2014
Income Statement
Revenue	$	3,344	$	3,030	$	2,714
Other Expenses	1,227		1,049		1,019
Income from continuing operations	$	2,117	$	1,981	$	1,695



	December 31, 2016		December 31, 2015
Balance Sheets
Total assets	$	5,382	$	5,157
Total liabilities	$	1,230	$	1,022

The joint venture agreements by which New Valley invests in real estate set forth certain conditions where New Valley or its affiliate is required to contribute payments towards the satisfaction of liabilities of the other partners in the joint venture, or to otherwise indemnify other partners. Mostly these contribution/indemnity requirements are triggered in the event New Valley or its affiliate commits an act that results in liability of another partner under a guarantee that the other partner has given to a lender in connection with a mortgage or mezzanine loan. The guarantees given in connection with the loans may include non-recourse carve-out guarantees, environmental indemnities, carry guarantees and/or completion guarantees, depending on the specific project. In some instances, New Valley or its affiliate would be proportionately liable in the event of liability under a guarantee that is not the fault of any of the partners in the joint venture. In very limited circumstances, New Valley has agreed to be a guarantor directly in connection with a loan, but in almost all of New Valley’s investments, neither New Valley nor any of its affiliates is a direct guarantor under the loan documents. In some instances, New Valley and its partners have guaranteed the debt of certain unconsolidated entities. As of December 31, 2016 and 2015, no events are known to the Company that would trigger any guarantees or contribution requirements by New Valley related to its unconsolidated entities.

As of December 31, 2016 and 2015, the aforementioned contribution/indemnity obligations and guarantees were not material to the Company. The Company believes that as of December 31, 2016, in the event New Valley becomes legally obligated to contribute funds or otherwise indemnify another partner due to a triggering event under a guarantee, or becomes legally obligated as a guarantor (in the limited circumstances where New Valley is a direct guarantor under the loan documents), the real estate underlying the applicable project is expected to be sufficient to largely repay any guaranteed obligation (although a lender need not necessarily resort to foreclosing on the real estate before seeking recourse under a loan guarantee). In one of New Valley's projects, New Valley and its partner have guaranteed approximately $6,000 of a construction loan. The guarantee is automatically reduced for all additional capital contributions New Valley and it partner contribute to the investment, and for any additional equity raised for the project. In another project, New Valley has executed limited recourse guarantees with a maximum exposure to New Valley of approximately $5,400.

If New Valley is required to make a payment under any guarantee, the payment would constitute a capital contribution or loan to the New Valley unconsolidated entity and increase New Valley's investment in the unconsolidated entity and its share of any funds the entity distributes.

(d) Investments in Real Estate, net:

The components of “Investments in Real Estate, net” were as follows:



	December 31, 2016		December 31, 2015
Escena, net	$	10,792	$	10,716
Sagaponack	12,848		12,602
Investment in real estate, net	$	23,640	$	23,318

Escena. In March 2008, a subsidiary of New Valley purchased a loan collateralized by a substantial portion of a 450-acre approved master planned community in Palm Springs, California known as “Escena.” In April 2009 New Valley completed the foreclosure process and took title to the collateral which consisted of 867 residential lots with site and public infrastructure, an 18-hole golf course, a substantially completed clubhouse, and a seven-acre site approved for a 450-room hotel.

The assets have been classified as an “Investments in Real Estate, net” on the Company’s consolidated balance sheet and the components are as follows:



	December 31, 2016			December 31, 2015
Land and land improvements	$	8,907		$	8,907
Building and building improvements	1,878			1,875
Other	2,028			1,923
	12,813			12,705
Less accumulated depreciation	(2,021		)	(1,989		)
	$	10,792		$	10,716

The Company recorded an operating loss of $899, $789 and $760 for the years ended December 31, 2016, 2015 and 2014, respectively, from Escena. The operating loss recorded for the year ended December 31, 2015 includes an impairment charge of $230 related to the golf course.

Investment in Sagaponack. In April 2015, New Valley invested $12,502 in a residential real estate project located in Sagaponack, NY. The project is wholly owned and the balances of the project are included in the consolidated financial statements of the Company. As of December 31, 2016, the assets of Sagaponack consist of land and land improvements of $12,848.

Investment in Indian Creek. In March 2013, New Valley invested $7,616 for an 80% interest in Timbo LLC (“Indian Creek”) which owns a residential real estate project located on Indian Creek, Florida. As a result of the 80% ownership interest, the consolidated financial statements of the Company include the results of Indian Creek.

In May 2014, the Indian Creek property was sold for $14,400. New Valley recognized income of approximately $2,400 from the sale for the year ended December 31, 2014. The project has concluded.

Real Estate Market Conditions. Because of the risks and uncertainties of the real estate markets, the Company will continue to perform additional assessments to determine the impact of the markets, if any, on the Company’s consolidated financial statements. Thus, future impairment charges may occur.

The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures.

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The components of Goodwill and other intangible assets, net were as follows:



	December 31, 2016		December 31, 2015
Goodwill	$	70,815	$	70,791

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	3,592		5,657

Total goodwill and other intangible assets, net	$	261,918	$	263,959

Goodwill is evaluated for impairment annually or whenever we identify certain triggering events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Events or circumstances that might indicate an interim evaluation is warranted include, among other things, unexpected adverse business conditions, macro and reporting unit specific economic factors (for example, interest rate and foreign exchange rate fluctuations, and loss of key personnel), supply costs, unanticipated competitive activities, and acts by governments and courts.

The Company follows ASC 350, Intangibles -- Goodwill and Other, included in ASU 2011-08, Testing Goodwill for Impairment. The Company performed the qualitative assessment for the year ended December 31, 2016 and determined that performing the first step of the two-step impairment test was unnecessary.

Other intangible assets and contract liabilities assumed were as follows:



	Useful Lives in Years	December 31, 2016			December 31, 2015
Intangible asset associated with benefit under the MSA	Indefinite	$	107,511		$	107,511

Trademark - Douglas Elliman	Indefinite	80,000			80,000

Favorable leases	1 - 10	13,444			13,444
Other intangibles	1 - 5	5,816			5,691
		19,260			19,135
Less: Accumulated amortization on amortizable intangibles		(15,668		)	(13,478		)
Other intangibles, net		$	3,592		$	5,657

Contract liabilities assumed:

Unfavorable leases	1 - 10	$	4,022		$	4,022
Less: Accumulated amortization on amortizable intangibles		(2,204		)	(1,591		)
Unfavorable leases, net		$	1,818		$	2,431

The intangible asset associated with the benefit under the MSA relates to the market share payment exemption of The Medallion Company Inc. (now known as Vector Tobacco Inc.), acquired in April 2002, under the MSA, which states payments under the MSA continue in perpetuity. As a result, the Company believes it will realize the benefit of the exemption for the foreseeable future.

The fair value of the intangible asset associated with the benefit under the MSA is calculated using discounted cash flows. This approach involves two steps: (i) estimating future cash savings due to the payment exemption under the MSA and (ii) and discounting the resulting cash flow savings to determine fair value. This fair value is then compared with the carrying value of the intangible asset associated with the benefit under the MSA. To the extent that the carrying amount exceeds the implied fair value of the intangible asset, an impairment loss is recognized. The Company performed its impairment test for the year ended December 31, 2016 and no impairment was noted.

The trademark intangible is attributed to the acquisition of the Douglas Elliman Realty brand name which the Company plans to continue using for the foreseeable future. The fair value of the intangible asset associated with the Douglas Elliman trademark is calculated using a “relief from royalty payments” method. This approach involves two steps: (i) estimating reasonable royalty rates for its trademark associated with the Douglas Elliman trademark and (ii) applying these royalty rates to a net sales stream and discounting the resulting cash flows to determine fair value. This fair value is then compared with the carrying value of the trademark. The Company performed the qualitative assessment for the year ended December 31, 2016 and no impairment was noted.

The fair value of the other intangibles with finite lives includes favorable leases arising from leases with terms that are less than market value assumed in the business combination. Other intangibles with finite lives also includes backlog and listing inventory for Development sales.

The unfavorable leases were from lease terms that exceeded market and gave rise to a liability that were assumed in the business combination. The unfavorable leases are grouped with long-term Other liabilities.

Amortization of other intangibles was $1,462 and $5,080 for the years ended December 31, 2016 and 2015, respectively. For the year ended December 31, 2015, $1,925 was taken as an offset to revenue, which relate to amortization of backlog and listing inventory intangible assets and $208 was taken as other amortization expense. For the years ended December 31, 2016 and December 31, 2015, respectively $2,075 and $3,730 were taken as rent expense for amortization of favorable leases and $613 and $783 were taken as offsets to rent expense for amortization of unfavorable leases. Amortization expense is estimated to be $932 and $833, amortization income from unfavorable lease contracts of $166 and $22, and amortization expense of $82 during the five years ended December 31, 2017 through 2021, respectively, and amortization income of $7 thereafter.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

Notes Payable, Long-Term Debt and Other Obligations

Notes Payable, Long-Term Debt and Other Obligations

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS

Notes payable, long-term debt and other obligations consist of:



	December 31, 2016			December 31, 2015
Vector:
7.75% Senior Secured Notes due 2021, including premium of $13,954 and $8,014	$	848,954		$	608,014
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $71,247 and $86,136*	187,503			172,614
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $108,480 and $132,119*	121,520			97,881
Liggett:
Revolving credit facility	37,163			3,213
Term loan under credit facility	2,999			3,269
Equipment loans	4,519			9,716
Other	591			461
Total notes payable, long-term debt and other obligations	1,203,249			895,168
Less:
Debt issuance costs	(30,798		)	(30,141		)
Total notes payable, long-term debt and other obligations	1,172,451			865,027
Less:
Current maturities	(39,508		)	(8,919		)
Amount due after one year	$	1,132,943		$	856,108

_____________________________

The fair value of the derivatives embedded within the 5.5% Variable Interest Senior Convertible Debentures ($59,433 at December 31, 2016 and $71,959 at December 31, 2015, respectively) and the 7.5% Variable Interest Senior Convertible Debentures ($52,899 at December 31, 2016 and $72,083 at December 31, 2015, respectively) is separately classified as a derivative liability in the consolidated balance sheets.

Senior Secured Notes - Vector:

7.75% Senior Secured Notes due 2021:

In February 2013, the Company issued $450,000 of its 7.75% Senior Secured Notes due 2021. The aggregate net proceeds from the issuance of the 7.75% Senior Secured Notes were approximately $438,250 after deducting offering expenses. On April 15, 2014, the Company completed the sale of an additional $150,000 principal amount of its 7.75% Senior Secured Notes due 2021 for a price of 106.75%. The Company received net proceeds of approximately $158,670 after deducting underwriting discounts, commissions, fees and offering expenses. On May 9, 2016, the Company completed the sale of an additional $235,000 principal amount of its 7.75% Senior Secured Notes due 2021 for a price of 103.5%. The Company received net proceeds of approximately $236,900 after deducting underwriting discounts, commissions, fees and offering expenses.

On January 27, 2017, the Company completed the sale of $850,000 of its 6.125% senior secured notes due 2025 (the “6.125% Notes”). The Company used the net cash proceeds from the 6.125% Notes offering, together with the proceeds of the concurrent sale of 2,000,000 of its common shares, to redeem all of the Company’s outstanding 7.75% Senior Secured Notes due 2021 and to satisfy and discharge the indenture governing the existing 7.75% Senior Secured Notes due 2021.

The 7.75% Senior Secured Notes paid interest on a semi-annual basis at a rate of 7.75% per year and matured on February 15, 2021. The 7.75% Senior Secured Notes were guaranteed subject to certain customary automatic release provisions on a joint and several basis by all of the 100% owned domestic subsidiaries of the Company that are engaged in the conduct of the Company’s cigarette businesses. (See Note 21.) In addition, some of the guarantees were collateralized by second priority or first priority security interests in certain collateral of some of the subsidiary guarantors, including their common stock, pursuant to security and pledge agreements.

6.125% Senior Secured Notes due 2025 — Vector

In January 2017, the Company sold $850,000 of its 6.125% Senior Secured Notes due 2025 in a private offering to qualified institutional investors in accordance with Rule 144A of the Securities Act of 1933. The aggregate net proceeds from the sale of the 6.125% Senior Secured Notes were approximately $831,100 after deducting underwriting discounts, commissions, fees and offering expenses. As discussed above, the Company is using the net proceeds of the issuance to redeem all of the Company's outstanding 7.75% Senior Secured Notes due 2021. The Company will account for the redeemed $835,000 of the 7.75% senior secured notes as an extinguishment of the debt.

The 6.125% Senior Secured Notes pay interest on a semi-annual basis at a rate of 6.125% per year and mature on February 1, 2025. The Company may redeem some or all of the 6.125% Senior Secured Notes at any time at a make-whole redemption price. On or after February 1, 2020, the Company may redeem some or all of the 6.125% Senior Secured Notes at a premium that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In the event of a change of control, as defined in the indenture governing the 6.125% Senior Secured Notes, each holder of the 6.125% Senior Secured Notes may require the Company to repurchase some or all of its 6.125% Senior Secured Notes at a repurchase price equal to 101% of their aggregate principal amount plus accrued and unpaid interest, if any, to the date of purchase. If the Company sells certain assets and does not apply the proceeds as required pursuant to the indenture, it must offer to repurchase the 6.125% Senior Secured Notes at the prices listed in the indenture.

The 6.125% Senior Secured Notes are guaranteed subject to certain customary automatic release provisions on a joint and several basis by all of the wholly owned domestic subsidiaries of the Company that are engaged in the conduct of the Company’s cigarette businesses. (See Note 21.) In addition, some of the guarantees are collateralized by first priority or second priority security interests in certain assets of some of the subsidiary guarantors, including their common stock, pursuant to security and pledge agreements.

The indenture contains covenants that restrict the payment of dividends by the Company if the Company's consolidated earnings before interest, taxes, depreciation and amortization, as defined in the indenture, for the most recently ended four full quarters is less than $75,000. The indenture also restricts the incurrence of debt if the Company's Leverage Ratio and its Secured Leverage Ratio, as defined in the indenture, exceed 3.0 and 1.5, respectively. The Company's Leverage Ratio is defined in the indenture as the ratio of the Company's and the guaranteeing subsidiaries' total debt less the fair market value of the Company's cash, investments in marketable securities and long-term investments to Consolidated EBITDA, as defined in the indenture. The Company's Secured Leverage Ratio is defined in the indenture in the same manner as the Leverage Ratio, except that secured indebtedness is substituted for indebtedness.

Variable Interest Senior Convertible Debt — Vector:

Vector has outstanding two series of variable interest senior convertible debt. Both series of debt pay interest on a quarterly basis at a stated rate plus an additional amount of interest on each payment date. The additional amount is based on the amount of cash dividends paid during the prior three-month period ending on the record date for such interest payment multiplied by the total number of shares of its common stock into which the debt would be convertible on such record date (the “Additional Interest”).

6.75% Variable Interest Senior Convertible Note due 2015, as amended:

On March 14, 2014, the holder of the 6.75% Variable Interest Senior Convertible Note due 2014 converted $25,000 principal balance of the $50,000 Note into 2,455,877 of the Company's common shares. The Company recorded non-cash accelerated interest expense related to the converted debt of $3,679 for the year ended December 31, 2014. The debt conversion resulted in a reduction of debt and an increase to equity in the amount of $25,000.

On November 14, 2014, the Note was amended whereby the stated maturity date of the Note was extended from November 15, 2014 to February 15, 2015. On February 3, 2015, the holder of the 6.75% Variable Interest Senior Convertible Note due 2014 converted the remaining $25,000 principal balance of the $50,000 Note into 2,455,876 of our common stock.

The holder of the 6.75% Note was an entity affiliated with Dr. Phillip Frost, whose ownership is approximately 15.3% of the Company’s common stock as of February 21, 2017.

7.5% Variable Interest Senior Convertible Notes due 2019:

In November 2012, the Company sold $230,000 of its 7.5% variable interest senior convertible notes due 2019 (the “2019 Convertible Notes”) in a public offering registered under the Securities Act. The 2019 Convertible Notes are the Company's senior unsecured obligations and are effectively subordinated to any of its secured indebtedness to the extent of the assets securing such indebtedness. The 2019 Convertible Notes are also structurally subordinated to all liabilities and commitments of the Company's subsidiaries. The aggregate net proceeds from the sale of the 2019 Convertible Notes were approximately $218,900 after deducting underwriting discounts, commissions, fees and offering expenses.

The 2019 Convertible Notes pay interest (“Total Interest”) on a quarterly basis beginning January 15, 2013 at a rate of 2.5% per annum plus additional interest, which is based on the amount of cash dividends paid during the prior three-month period ending on the record date for such interest payment multiplied by the total number of shares of its common stock into which the debt will be convertible on such record date. Notwithstanding the foregoing, however, the interest payable on each interest payment date shall be the higher of (i) the Total Interest and (ii) 7.5% per annum. The notes are convertible into the Company’s common stock at the holder’s option. The notes will mature on January 15, 2019. If a fundamental change (as defined in the indenture) occurs, the Company will be required to offer to repurchase the notes at 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

Share Lending Agreement:

In connection with the offering of its 2019 Convertible Notes in November 2012, the Company lent Jefferies & Company (“Jefferies”), the underwriter for the offering, a total of 7,431,606 shares of the Company’s common stock under the Share Lending Agreement. Jefferies is entitled to offer and sell such shares and use the sale to facilitate the establishment of a hedge position by investors in the notes and will receive all proceeds from the common stock offerings and lending transactions under the Share Lending Agreement. The Company received a nominal lending fee of $0.10 per share for each share of common stock that the Company lent pursuant to the Share Lending Agreement.

The Share Lending Agreement requires that the shares borrowed be returned upon the maturity of the related debt, January 2019, or earlier, including the redemption of the notes or the conversion of the notes to shares of common stock pursuant to the terms of the indenture governing the notes. Borrowed shares are issued and outstanding for corporate law purposes and, accordingly, the holders of the borrowed shares will have all of the rights of a holder of the Company’s outstanding shares. However, because the share borrower must return to the Company all borrowed shares (or identical shares), the borrowed shares are not considered outstanding for purposes of computing and reporting the Company’s earnings per share in accordance with U.S. GAAP. Jefferies agreed to pay to the Company an amount equal to any dividends or other distributions that the Company pays on the borrowed shares.

The Company received a nominal fee for the loaned shares and determined the fair value of the Share Lending Agreement was $3,204 at the date of issuance based on the present value of the future cash flows attributed to an estimated reduction in stated interest due to the presence of the Share Lending Agreement. The $3,204 fair value was recognized as a debt financing charge and is being amortized to interest expense over the term of the notes. In November 2012 and September 2016, 3,715,804 and 2,135,923 shares were returned but no cash was exchanged, respectively. As of December 31, 2016, 1,579,879 shares were outstanding on the Share Lending Agreement and $466 had been amortized to interest expense. The issuance costs associated with the Share Lending Agreement were presented on the balance sheet as a direct deduction from the face amount of the related debt. The unamortized amount of these issuance costs was $2,140 and $2,607 at December 31, 2016 and December 31, 2015, respectively.

5.5% Variable Interest Senior Convertible Notes due 2020 - Vector:

On March 24, 2014, the Company completed the sale of $258,750 of its 5.5% Variable Interest Convertible Senior Notes due 2020 (the “2020 Convertible Notes”). The 2020 Convertible Notes are the Company's senior unsecured obligations and are effectively subordinated to any of its secured indebtedness to the extent of the assets securing such indebtedness. The 2020 Convertible Notes are also structurally subordinated to all liabilities and commitments of the Company's subsidiaries.

The aggregate net proceeds from the sale of the 2020 Convertible Notes were approximately $250,300 after deducting underwriting discounts, commissions, fees and offering expenses. The net proceeds were used for general corporate purposes, including for additional investments in real estate and in the Company's tobacco business.

The 2020 Convertible Notes pay interest (“Total Interest”) on a quarterly basis beginning April 15, 2014 at a rate of 1.75% per annum plus additional interest, which is based on the amount of cash dividends paid during the prior three-month period ending on the record date for such interest payment multiplied by the total number of shares of its common stock into which the debt will be convertible on such record date. Notwithstanding the foregoing, however, the interest payable on each interest payment date after April 15, 2014 is the higher of (i) the Total Interest and (ii) 5.5% per annum with the interest payment on April 15, 2014 being based on 5.5% per annum. The notes are convertible into the Company’s common stock at the holder’s option. The notes will mature on April 15, 2020. If a fundamental change (as defined in the indenture) occurs, the Company will be required to offer to repurchase the notes at 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

Shares of Common Stock per $1,000 Principal Amount due on Convertible Notes:

The conversion rates for all convertible debt outstanding as of December 31, 2016 and December 31, 2015, are summarized below:



	December 31, 2016			December 31, 2015
	Conversion Price		Shares per $1,000	Conversion Price		Shares per $1,000

7.5% Variable Interest Senior Convertible Notes due 2019	$	15.22	65.7030	$	15.22	65.7030
5.5% Variable Interest Senior Convertible Debentures due 2020	$	23.46	42.6185	$	23.46	42.6185

Embedded Derivatives on the Variable Interest Senior Convertible Debt:

The portion of the interest on the Company’s convertible debt which is computed by reference to the cash dividends paid on the Company’s common stock is considered an embedded derivative within the convertible debt, which the Company is required to separately value. In accordance with authoritative guidance on accounting for derivatives and hedging, the Company has bifurcated these embedded derivatives and estimated the fair value of the embedded derivative liability including using a third party valuation. The resulting discount created by allocating a portion of the issuance proceeds to the embedded derivative is then amortized to interest expense over the term of the debt using the effective interest method. Changes to the fair value of these embedded derivatives are reflected quarterly in the Company’s consolidated statements of operations as “Change in fair value of derivatives embedded within convertible debt.” The value of the embedded derivative is contingent on changes in interest rates of debt instruments maturing over the duration of the convertible debt as well as projections of future cash and stock dividends over the term of the debt.

A summary of non-cash interest expense associated with the amortization of the debt discount created by the embedded derivative liability associated with the Company’s variable interest senior convertible debt is as follows:



	Year Ended December 31,
	2016		2015		2014
6.75% note	$	—	$	—	$	6,097
6.75% exchange notes	—		—		13,570
7.5% convertible notes	14,294		8,777		5,553
5.5% convertible notes	11,438		9,752		6,851
Interest expense associated with embedded derivatives	$	25,732	$	18,529	$	32,071

A summary of non-cash changes in fair value of derivatives embedded within convertible debt is as follows:



	Year Ended December 31,
	2016		2015			2014
6.75% note	$	—	$	(5	)	$	3,212
6.75% exchange notes	—		—			8,990
7.5% convertible notes	19,184		15,555			5,296
5.5% convertible notes	12,526		8,905			1,911
Gain on changes in fair value of derivatives embedded within convertible debt	$	31,710	$	24,455		$	19,409

The following table reconciles the fair value of derivatives embedded within convertible debt:



	6.75% Note			6.75% Exchange Notes			7.5% Convertible Notes			5.5% Convertible Notes			Total
Balance at January 1, 2014	$	6,607		$	12,521		$	92,934		$	—		$	112,062
Issuance of 5.5% Note	—			—			—			82,775			82,775
Conversion of $25,000 of 6.75% Variable Interest Senior Convertible Note due February 15, 2015	(2,511		)	—			—			—			(2,511		)
Conversion of $107,530 of 6.75% Variable Interest Senior Convertible Exchange Notes due November 15, 2014	—			(3,531		)	—			—			(3,531		)
Gain from changes in fair value of embedded derivatives	(3,212		)	(8,990		)	(5,296		)	(1,911		)	(19,409		)
Balance at December 31, 2014	884			—			87,638			80,864			169,386
Conversion of $25,000 of 6.75% Variable Interest Senior Convertible Note due February 15, 2015	(889		)	—			—			—			(889		)
Loss (gain) from changes in fair value of embedded derivatives	5			—			(15,555		)	(8,905		)	(24,455		)
Balance at December 31, 2015	—			—			72,083			71,959			144,042
Gain from changes in fair value of embedded derivatives	—			—			(19,184		)	(12,526		)	(31,710		)
Balance at December 31, 2016	$	—		$	—		$	52,899		$	59,433		$	112,332

Beneficial Conversion Feature on Variable Interest Senior Convertible Debt:

After giving effect to the recording of the embedded derivative liability as a discount to the convertible debt, the Company’s common stock had a fair value at the issuance date of the debt in excess of the conversion price resulting in a beneficial conversion feature. The accounting guidance on debt with conversion and other options requires that the intrinsic value of the beneficial conversion feature be recorded to additional paid-in capital and as a discount on the debt. The discount is then amortized to interest expense over the term of the debt using the effective interest method. The beneficial conversion feature has been recorded, net of income taxes, as an increase to stockholders’ deficiency.

A summary of non-cash interest expense associated with the amortization of the debt discount created by the beneficial conversion feature on the Company’s variable interest senior convertible debt is as follows:



	Year Ended December 31,
	2016		2015		2014
Amortization of beneficial conversion feature:
6.75% note	$	—	$	—	$	5,317
6.75% exchange notes	—		—		8,386
7.5% convertible notes	9,345		5,738		3,631
5.5% convertible notes	3,451		2,943		2,067
Interest expense associated with beneficial conversion feature	$	12,796	$	8,681	$	19,401

Unamortized Debt Discount on Variable Interest Senior Convertible Debt:

The following table reconciles unamortized debt discount within convertible debt:



	6.75% Note			6.75% Exchange Notes			7.5% Convertible Notes			5.5% Convertible Notes			Total
Balance at January 1, 2014	$	19,312		$	25,945		$	155,818		$	—		$	201,075
Conversion of $107,530 of 6.75% Variable Interest Senior Convertible Exchange Notes due November 15, 2014	—			(3,989		)	—			—			(3,989		)
Conversion of $25,000 of 6.75% Variable Interest Senior Convertible Note due February 15, 2015	(7,898		)	—			—			—			(7,898		)
Issuance of convertible notes - embedded derivative	—			—			—			82,775			82,775
Issuance of convertible notes - beneficial conversion feature	—			—			—			24,974			24,974
Amortization of embedded derivatives	(6,097		)	(13,570		)	(5,553		)	(6,851		)	(32,071		)
Amortization of beneficial conversion feature	(5,317		)	(8,386		)	(3,631		)	(2,067		)	(19,401		)
Balance at December 31, 2014	—			—			146,634			98,831			245,465
Amortization of embedded derivatives	—			—			(8,777		)	(9,752		)	(18,529		)
Amortization of beneficial conversion feature	—			—			(5,738		)	(2,943		)	(8,681		)
Balance at December 31, 2015	—			—			132,119			86,136			218,255
Amortization of embedded derivatives	—			—			(14,294		)	(11,438		)	(25,732		)
Amortization of beneficial conversion feature	—			—			(9,345		)	(3,451		)	(12,796		)
Balance at December 31, 2016	$	—		$	—		$	108,480		$	71,247		$	179,727

Revolving Credit Facility — Liggett:

On January 14, 2015, Liggett and 100 Maple LLC (“Maple”), a subsidiary of Liggett, entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”), with Wells Fargo Bank, National Association (“Wells Fargo”), as agent and lender. The Credit Agreement governs a $60,000 credit facility (the “Credit Facility”) that consists of a revolving credit facility of up to $60,000 borrowing capacity (the “Revolver”) and a $3,600 term loan (the “Term Loan”) that is within the $60,000 commitment under the Credit Facility and reduces the amount available under the Revolver. All borrowings under the Credit Facility (other than the Term Loan) are limited to a borrowing base equal to roughly (1) the lesser of (a) 85% of the net amount of eligible accounts receivable and (b) $10,000 plus (2) the lesser of (a) the sum of (I) 80% of the value of eligible inventory consisting of packaged cigarettes plus (II) the lesser of (x) 60% multiplied by Liggett’s eligible cost of eligible inventory consisting of leaf tobacco and (y) 85% of the net orderly liquidation value of eligible inventory consisting of leaf tobacco and (b) $60,000, less (3) certain reserves against accounts receivable, inventory, bank products or other items which Wells Fargo, as agent, may establish from time to time in its permitted discretion. The obligations under the Credit Facility are collateralized on a first priority basis by all inventories, receivables and certain other personal property of Liggett and Maple, a mortgage on Liggett’s manufacturing facility and certain real property of Maple, subject to certain permitted liens. The Credit Facility amended and restated Liggett’s previous $50,000 credit facility with Wells Fargo and Maple’s existing $3,600 term loan with Wells Fargo.

The term of the Credit Facility expires on March 31, 2020. Prime rate loans under the Credit Facility bear interest at a rate equal to the greatest of (i) the Federal Funds rate plus 0.50%, (ii) LIBOR plus 1.0% and (ii) the prime rate of Wells Fargo. LIBOR rate loans under the Credit Facility bear interest at a rate equal to LIBOR plus 2.25%. The interest rate applicable to this Credit Facility at December 31, 2016 and 2015 was 3.02% and 2.70%, respectively.

The Credit Facility, as amended, permits the guaranty of the 6.125% Senior Secured Notes due 2025 by each of Liggett and Maple and the pledging of certain assets of Liggett and Maple on a subordinated basis to secure their guarantees. The credit facility also grants to Wells Fargo a blanket lien on all the assets of Liggett and Maple, excluding any equipment pledged to current or future purchase money or other financiers of such equipment and excluding any real property, other than the Mebane Property and other real property to the extent its value is in excess of $5,000. Wells Fargo, Liggett, Maple and the collateral agent for the holders of our 6.125% senior secured notes have entered into an intercreditor agreement, pursuant to which the liens of the collateral agent on the Liggett and Maple assets will be subordinated to the liens of Wells Fargo on the Liggett and Maple assets.

The Credit Facility contains customary affirmative and negative covenants, including covenants that limit Liggett’s, Maple’s and their subsidiaries’ ability to incur, create or assume certain indebtedness, to incur or assume certain liens, to purchase, hold or acquire certain investments, to declare or make certain dividends and distributions and to engage in certain mergers, consolidations and asset sales. The Credit Facility also requires the Company to comply with specified financial covenants, including that Liggett's earnings before interest, taxes, depreciation and amortization, as defined under the Credit Facility, on a trailing twelve month basis, shall not be less than $100,000 if Liggett's excess availability, as defined under the Credit Facility, is less than $20,000. The covenants also require that annual capital expenditures, as defined under the Credit Facility (before a maximum carryover amount of $10,000), shall not exceed $20,000 during any fiscal year. The Credit Facility also contains customary events of default. The Credit Facility requires Liggett’s compliance with certain financial and other covenants including a restriction on Liggett’s ability to pay cash dividends unless Liggett’s borrowing availability, as defined, under the credit facility for the 30-day period prior to the payment of the dividend, and after giving effect to the dividend, was at least $5,000 and no event of default had occurred under the agreement, including Liggett’s compliance with the covenants in the credit facility. Liggett was in compliance with these covenants as of December 31, 2016.

In connection with the issuance of the 6.125% Senior Secured Notes due 2025, in January 2017, Liggett and Maple entered into Amendment No. 1 of the Credit Facility to update certain defined terms of the Credit Facility relating to the Company's 6.125% Senior Secured Notes due 2025.

Term Loan under Credit Facility — Liggett:

Within the commitment under the Credit Facility, Wells Fargo holds a mortgage on Liggett’s manufacturing facility through a Term Loan with Maple. The outstanding balance under the Term Loan is $2,999 as of December 31, 2016. The Term Loan bears an interest rate equal to LIBOR + 2.25%. Monthly principal payments of $25 are due under the Term Loan on the first day of each month with the unpaid principal balance of approximately $2,000 due at maturity on March 1, 2020.

As of December 31, 2016, a total of $40,162 was outstanding under the revolving and term loan portions of the credit facility. Availability as determined under the facility was approximately $16,714 based on eligible collateral at December 31, 2016.

Equipment Loans — Liggett:

Liggett did not enter into any equipment financing arrangements in 2016.

In 2015, Liggett entered into two financing agreements for a total of $1,765 related to the purchase of equipment. The weighted average interest rate of the outstanding debt is 4.79% per annum and the interest rates on the two notes are from 4.49% to 4.85%. Total monthly installments are approximately $33.

In 2014, Liggett entered into three financing agreements for a total of $5,115 related to the purchase of equipment. The weighted average interest rate of the outstanding debt is 5.02% per annum and the interest rates on the three notes are from 4.98% to 5.04%. Total monthly installments are approximately $95. Liggett also refinanced $2,843 of debt related to equipment purchased in 2011. The refinanced debt had an interest rate of 5.63% and a remaining term of 21 months. The refinanced debt carries an interest rate of 4.99% and a term of 36 months.

Each of these equipment loans is collateralized by the purchased equipment.

Fair Value of Notes Payable and Long-Term Debt:

The estimated fair value of the Company’s notes payable and long-term debt are as follows:



	December 31, 2016					December 31, 2015
	Carrying Value			Fair Value		Carrying Value			Fair Value
Notes payable and long-term debt	$	1,203,249	⁽¹⁾	$	1,570,732	$	895,168	⁽¹⁾	$	1,297,875

__________

⁽¹⁾The carrying value does not include the carrying value of the embedded derivative. See Note 18.

Notes payable and long-term debt are carried on the condensed consolidated balance sheet at amortized cost. The fair value determinations disclosed above are classified as Level 2 under the fair value hierarchy disclosed in Note 18 if such liabilities were recorded on the consolidated balance sheet at fair value. The estimated fair value of the Company’s notes payable and long-term debt has been determined by the Company using available market information and appropriate valuation methodologies including the evaluation of the Company’s credit risk as described in Note 1. The Company used a derived price based upon quoted market prices and trade activity as of December 31, 2016 to determine the fair value of its publicly-traded notes and debentures. The carrying value of the revolving credit facility and term loan is equal to the fair value. The fair value of the equipment loans and other obligations was determined by calculating the present value of the required future cash flows. However, considerable judgment is required to develop the estimates of fair value and, accordingly, the estimate presented herein is not necessarily indicative of the amount that could be realized in a current market exchange.

Scheduled Maturities:

Scheduled maturities of long-term debt are as follows:



	Principal		Unamortized Discount/ (Premium)			Net
Year Ending December 31:
2017	$	39,509	$	—		$	39,509
2018	2,099		—			2,099
2019	231,261		108,479			122,782
2020	261,151		71,247			189,904
2021	835,001		(13,954		)	848,955
Thereafter	—		—			—
Total	$	1,369,021	$	165,772		$	1,203,249

The scheduled maturities do not give effect to the redemption of the 7.75% Senior Secured Notes due 2021 or the issuance of the 6.125% Senior Secured Notes due 2025 in January 2017.

Commitments

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments

COMMITMENTS

Certain of the Company’s subsidiaries lease facilities and equipment used in operations under both month-to-month and fixed-term agreements. The aggregate minimum rentals under operating leases with non-cancelable terms of one year or more as of December 31, 2016 are as follows:



	Lease Commitments
Year Ending December 31:
2017	$	24,952
2018	22,068
2019	21,786
2020	18,656
2021	15,213
Thereafter	101,138
Total	$	203,813

The Company’s rental expense for the years ended December 31, 2016, 2015 and 2014 was $27,237, $24,446 and $22,516, respectively.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

Defined Benefit Plans and Postretirement Plans:

Defined Benefit Plans. The Company sponsors three defined benefit pension plans (two qualified and one non-qualified) covering virtually all individuals who were employed by Liggett on a full-time basis prior to 1994. Future accruals of benefits under these three defined benefit plans were frozen between 1993 and 1995. These benefit plans provide pension benefits for eligible employees based primarily on their compensation and length of service. Contributions are made to the two qualified pension plans in amounts necessary to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974. The plans’ assets and benefit obligations were measured at December 31, 2016 and 2015, respectively.

The Company also sponsors a Supplemental Retirement Plan (“SERP”) where the Company will pay supplemental retirement benefits to certain key employees, including certain executive officers of the Company. The plan meets the applicable requirements of Section 409A of the Internal Revenue Code and is intended to be unfunded for tax purposes. Payments under the SERP will be made out of the general assets of the Company. The SERP is a defined benefit plan. Under the SERP, the benefit payable to a participant at his normal retirement date is a lump sum amount which is the actuarial equivalent of a predetermined annual retirement benefit set by the Company’s board of directors. Normal retirement date is defined as the January 1 following the attainment by the participant of the latter of age 60 or the completion of eight years of employment following January 1, 2002 with the Company or a subsidiary.

The SERP provides the Company’s President and Chief Executive Officer with an additional benefit under the SERP equal to a $736 lifetime annuity. In addition, in the event of a termination of his employment under the circumstances where he is entitled to severance payments under his employment agreement, he will be credited with an additional 36 months of service towards vesting under the SERP.

At December 31, 2016, the aggregate lump sum equivalents of the annual retirement benefits payable under the Amended SERP at normal retirement dates occurring during the following years is as follows: 2017 – $0; 2018 – $0; 2019 – $0; 2020 – $7,111; 2021 – $0 and 2022 to 2026 – $51,155. In the case of a participant who becomes disabled prior to his normal retirement date or whose service is terminated without cause, the participant’s benefit consists of a pro-rata portion of the full projected retirement benefit to which he would have been entitled had he remained employed through his normal retirement date, as actuarially discounted back to the date of payment. A participant who dies while working for the Company or a subsidiary (and before becoming disabled or attaining his normal retirement date) will be paid an actuarially discounted equivalent of his projected retirement benefit; conversely, a participant who retires beyond his normal retirement date will receive an actuarially increased equivalent of his projected retirement benefit.

Postretirement Medical and Life Plans. The Company provides certain postretirement medical and life insurance benefits to certain employees and retirees. Substantially all of the Company’s manufacturing employees as of December 31, 2016 are eligible for postretirement medical benefits if they reach retirement age while working for Liggett or certain affiliates. Retirees are required to fund 100% of participant medical premiums and, pursuant to union contracts, Liggett reimburses approximately 192 hourly retirees, who retired prior to 1991, for Medicare Part B premiums. In addition, the Company provides life insurance benefits to approximately 110 active employees and 437 retirees who reach retirement age and are eligible to receive benefits under one of the Company’s defined benefit pension plans. The Company’s postretirement liabilities are comprised of Medicare Part B and life insurance premiums.

The following table provides a reconciliation of benefit obligations, plan assets and the funded status of the pension plans and other postretirement benefits:



	Pension Benefits						Other Postretirement Benefits
	2016			2015			2016			2015
Change in benefit obligation:
Benefit obligation at January 1	$	(133,506	)	$	(150,199	)	$	(8,434	)	$	(9,031	)
Service cost	(547		)	(532		)	(5		)	(8		)
Interest cost	(5,419		)	(4,992		)	(385		)	(371		)
Plan settlement	—			17,047			—			—
Special termination benefits	—			(3,831		)	—			—
Benefits paid	9,596			9,879			695			522
Expenses paid	309			490			—			—
Actuarial (gain) loss	(3,154		)	(1,368		)	(553		)	454
Benefit obligation at December 31	$	(132,721	)	$	(133,506	)	$	(8,682	)	$	(8,434	)
Change in plan assets:
Fair value of plan assets at January 1	$	106,620		$	134,017		$	—		$	—
Actual return on plan assets	6,720			(327		)	—			—
Plan settlement	—			(17,047		)	—			—
Expenses paid	(309		)	(490		)	—			—
Contributions	346			346			695			522
Benefits paid	(9,596		)	(9,879		)	(695		)	(522		)
Fair value of plan assets at December 31	$	103,781		$	106,620		$	—		$	—
Unfunded status at December 31	$	(28,940	)	$	(26,886	)	$	(8,682	)	$	(8,434	)
Amounts recognized in the consolidated balance sheets:
Prepaid pension costs	$	22,273		$	20,650		$	—		$	—
Other accrued liabilities	(316		)	(320		)	(621		)	(595		)
Non-current employee benefit liabilities	(50,897		)	(47,216		)	(8,061		)	(7,839		)
Net amounts recognized	$	(28,940	)	$	(26,886	)	$	(8,682	)	$	(8,434	)



	Pension Benefits									Other Postretirement Benefits
	2016			2015			2014			2016			2015			2014
Service cost — benefits earned during the period	$	547		$	532		$	523		$	5		$	8		$	9
Interest cost on projected benefit obligation	5,419			4,992			6,196			385			371			430
Expected return on assets	(6,076		)	(7,378		)	(8,518		)	—			—			—
Settlement loss	—			3,214			—			—			—			—
Special termination benefit recognized	—			3,831			—			—			—			—
Amortization of net loss (gain)	1,855			1,083			1,075			(75		)	(97		)	(60		)
Net expense (income)	$	1,745		$	6,274		$	(724	)	$	315		$	282		$	379

The following table summarizes amounts in accumulated other comprehensive loss (gain) that are expected to be recognized as components of net periodic benefit cost for the year ending 2017.



	Defined Benefit Pension Plans		Post- Retirement Plans			Total
Actuarial loss (gain)	$	2,009	$	(54	)	$	1,955

As of December 31, 2016, accumulated other comprehensive (loss) income, before income taxes, consists of the following:



	Defined Benefit Pension Plans			Post- Retirement Plans			Total
Accumulated other comprehensive (loss) income as of January 1, 2016	$	(35,258	)	$	939		$	(34,319	)
Amortization of gain (loss)	1,855			(75		)	1,780
Net loss arising during the year	(2,511		)	(553		)	(3,064		)
Accumulated other comprehensive (loss) income as of December 31, 2016	$	(35,914	)	$	311		$	(35,603	)

As of December 31, 2015, accumulated other comprehensive (loss) income, before income taxes, consisted of the following:



	Defined Benefit Pension Plans			Post- Retirement Plans			Total
Accumulated other comprehensive (loss) income as of January 1, 2015	$	(30,481	)	$	582		$	(29,899	)
Amortization of gain (loss)	4,297			(97		)	4,200
Net (loss) gain arising during the year	(9,074		)	454			(8,620		)
Accumulated other comprehensive (loss) income as of December 31, 2015	$	(35,258	)	$	939		$	(34,319	)

As of December 31, 2016, two of the Company’s four defined benefit plans experienced accumulated benefit obligations in excess of plan assets, for which in the aggregate the projected benefit obligation, accumulated benefit obligation and fair value of plan assets were $51,213, $51,213 and $0, respectively. As of December 31, 2015, two of the Company’s four defined benefit plans experienced accumulated benefit obligations in excess of plan assets, for which in the aggregate the projected benefit obligation, accumulated benefit obligation and fair value of plan assets were $47,535, $47,535 and $0, respectively.



	Pension Benefits			Other Postretirement Benefits
	2016	2015	2014	2016	2015	2014
Weighted average assumptions:
Discount rates — benefit obligation	3.60% - 4.20%	3.75% - 4.50%	2.75% - 4.00%	4.40%	4.75%	4.25%
Discount rates — service cost	3.75% - 4.50%	2.75% - 4.25%	3.00% - 4.75%	4.75%	4.25%	5.00%
Assumed rates of return on invested assets	6.00%	6.00%	6.50%	—%	—%	—%
Salary increase assumptions	N/A	N/A	N/A	3.00%	3.00%	3.00%

Discount rates were determined by a quantitative analysis examining the prevailing prices of high quality bonds to determine an appropriate discount rate for measuring obligations. The aforementioned analysis analyzes the cash flow from each of the Company’s four benefit plans as well as a separate analysis of the cash flows from the postretirement medical and life insurance plans sponsored by Liggett. The aforementioned analyses then construct a hypothetical bond portfolio whose cash flow from coupons and maturities match the year-by-year, projected benefit cash flow from the respective pension or retiree health plans. The Company uses the lower discount rate derived from the two independent analyses in the computation of the benefit obligation and service cost for each respective retirement liability. The Company uses the discount rate derived from the analysis in the computation of the benefit obligation and service cost for all the plans respective retirement liability.

The Company considers input from its external advisors and historical returns in developing its expected rate of return on plan assets. The expected long-term rate of return is the weighted average of the target asset allocation of each individual asset class. The Company’s actual 10-year annual rate of return on its pension plan assets was 5.2%, 6.0% and 6.6% for the years ended December 31, 2016, 2015 and 2014, respectively, and the Company’s actual five-year annual rate of return on its pension plan assets was 7.6%, 6.3% and 9.8% for the years ended December 31, 2016, 2015 and 2014, respectively.

Gains and losses resulted from changes in actuarial assumptions and from differences between assumed and actual experience, including, among other items, changes in discount rates and changes in actual returns on plan assets as compared to assumed returns. These gains and losses are only amortized to the extent that they exceed 10% of the greater of Projected Benefit Obligation and the fair value of assets. For the year ended December 31, 2016, Liggett used a 14.18-year period for its Hourly Plan and a 14.31-year period for its Salaried Plan to amortize pension fund gains and losses on a straight line basis. Such amounts are reflected in the pension expense calculation beginning the year after the gains or losses occur. The amortization of deferred losses negatively impacts pension expense in the future.

Plan assets are invested employing multiple investment management firms. Managers within each asset class cover a range of investment styles and focus primarily on issue selection as a means to add value. Risk is controlled through a diversification among asset classes, managers, styles and securities. Risk is further controlled both at the manager and asset class level by assigning excess return and tracking error targets. Investment managers are monitored to evaluate performance against these benchmark indices and targets.

Allowable investment types include equity, investment grade fixed income, high yield fixed income, hedge funds and short term investments. The equity fund is comprised of common stocks and mutual funds of large, medium and small companies, which are predominantly U.S. based. The investment grade fixed income fund includes managed funds investing in fixed income securities issued or guaranteed by the U.S. government, or by its respective agencies, mortgage backed securities, including collateralized mortgage obligations, and corporate debt obligations. The high yield fixed income fund includes a fund which invests in non-investment grade corporate debt securities. The hedge funds invest in both equity, including common and preferred stock, and debt obligations, including convertible debentures, of private and public companies. The Company generally utilizes its short term investments, including interest-bearing cash, to pay benefits and to deploy in special situations.

The Liggett Employee Benefits Committee has established the following target assets allocation to equal 55.0% equity investments, 30.0% investment grade fixed income, 10.0% high yield fixed income, and 5.0% short-term investments, with a rebalancing range of approximately plus or minus 5% around the target asset allocations.

Vector’s defined benefit retirement plan allocations at December 31, 2016 and 2015, by asset category, were as follows:



	Plan Assets at December 31,
	2016		2015
Asset category:
Equity securities	54	%	51	%
Investment grade fixed income securities	30	%	30	%
High yield fixed income securities	10	%	11	%
Alternative investments	2	%	3	%
Short-term investments	4	%	5	%
Total	100	%	100	%

The defined benefit plans’ recurring financial assets subject to fair value measurements and the necessary disclosures are as follows:



	Fair Value Measurements as of December 31, 2016
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Insurance contracts	$	1,765	$	—	$	1,765	$	—
Amounts in individually managed investment accounts:
Cash	4,302		4,302		—		—
U.S. equity securities	8,298		8,298		—		—
Common collective trusts	76,969		—		76,969		—
Investment partnership	12,447		—		10,457		1,990
Total	$	103,781	$	12,600	$	89,191	$	1,990



	Fair Value Measurements as of December 31, 2015
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Insurance contracts	$	1,760	$	—	$	1,760	$	—
Amounts in individually managed investment accounts:
Cash, mutual funds and common stock	5,429		5,429		—		—
U.S. equity securities	28,434		28,434		—		—
Common collective trusts	56,327		—		56,327		—
Investment partnership	14,670		—		11,256		3,414
Total	$	106,620	$	33,863	$	69,343	$	3,414

The fair value determination disclosed above of assets as Level 3 under the fair value hierarchy was determined based on unobservable inputs and were based on company assumptions, and information obtained from the investments based on the indicated market values of the underlying assets of the investment portfolio. The fair value of investment included in Level 1 are based on quoted market prices from various stock exchanges. The Level 2 investments are based on quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets in markets that are not active.

The changes in the fair value of the Level 3 investments as of December 31, 2016 and 2015 were as follows:



	2016			2015
Balance as of January 1	$	3,414		$	6,824
Distributions	(1,648		)	(2,904		)
Unrealized gain (loss) on long-term investments	16			(470		)
Realized gain (loss) on long-term investments	208			(36		)
Balance as of December 31	$	1,990		$	3,414

For 2016 measurement purposes, annual increases in Medicare Part B trends were assumed to equal rates between 0.3% and 18.23% between 2017 and 2024 and 4.5% thereafter. For 2015 measurement purposes, annual increases in Medicare Part B trends were assumed to equal rates between 1.29% and 17.92% between 2017 and 2024 and 4.5% after 2024.

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A 1% change in assumed health care cost trend rates would have the following effects:



	1% Increase		1% Decrease
Effect on total of service and interest cost components	$	4	$	(4	)
Effect on benefit obligation	71		(67		)

To comply with ERISA’s minimum funding requirements, the Company does not currently anticipate that it will be required to make any contributions to the pension plan year beginning on January 1, 2017 and ending on December 31, 2017. Any additional funding obligation that the Company may have for subsequent years is contingent on several factors and is not reasonably estimable at this time.

Estimated future pension and postretirement medical benefits payments are as follows:



	Pension		Postretirement Medical
2017	$	9,187	$	621
2018	8,715		641
2019	8,210		637
2020	14,838		622
2021	7,225		618
2022 - 2026	80,902		3,015

Profit Sharing and 401(k) Plans:

The Company maintains 401(k) plans for substantially all U.S. employees which allow eligible employees to invest a percentage of their pre-tax compensation. The Company contributed to the 401(k) plans and expensed $1,564, $1,467 and $1,219 for the years ended December 31, 2016, 2015 and 2014, respectively.

Restructuring

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring

RESTRUCTURING

In October 2015, the Company's Tobacco segment commenced a restructuring by realigning its sales force and adjusting its business model to more efficiently serve its chain and independent accounts. In connection with the restructuring, the segment's workforce was reduced by 95 employees (or approximately 17% of the Tobacco segment's workforce).

The following table summarizes amounts expensed for the years ended December 31, 2016 and 2015:



	Amounts expensed through Year Ended December 31,
	2016		2015
Cash Charges:
Employee severance and benefits	$	—	$	1,094
Lease termination costs	41		203
Other restructuring expenses	—		68
	41		1,365
Non-Cash:
Employee pension benefits	—		5,438
Point of sale inventory impairment	—		454
	—		5,892

Total restructuring	$	41	$	7,257

All amounts expensed through December 31, 2016 and 2015 are included as Restructuring charges in the Company’s consolidated statements of operations and are all attributable to the Company’s Tobacco segment.

Severance and benefits expensed for the year ended December 31, 2015 relate entirely to a reduction in sales and administrative positions. Non-cash employee pension benefits costs relate to a reduction in manufacturing positions at Liggett’s plant in Mebane, NC.

Employee pension benefits consist of the costs associated with enhanced pension benefits due to employees under the terms of a voluntary termination program initiated in the third quarter of 2015. Pension plan participants electing to accept voluntary termination of employment were offered enhanced pension benefits including an increased payment as well as the option to receive a lump sum benefit instead of an annuity. The costs of the special termination benefit associated with the increased payments were $3,831 and the costs of settlements related to lump sum payments were $1,607 for the year ended December 31, 2015.

The following table presents the activity under the Tobacco segment restructuring plan for the years ended December 31, 2016 and 2015:



	Employee Severance and Benefits			Contract Termination/Exit Costs			Other			Non-Cash Pension Expense			Non-Cash Asset Impairment			Total
Accrual balance as of January 1, 2015	$	—		$	—		$	—		$	—		$	—		$	—
Restructuring charges	1,094			203			68			5,438			454			7,257
Utilized	(672		)	(155		)	(48		)	(5,438		)	(454		)	(6,767		)
Accrual balance as of December 31, 2015	422			48			20			—			—			490
Restructuring charges	—			41			—			—			—			41
Utilized	(422		)	(89		)	(20		)	—			—			(531		)
Accrual balance as of December 31, 2016	$	—		$	—		$	—		$	—		$	—		$	—

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company files a consolidated U.S. income tax return that includes its more than 80%-owned U.S. subsidiaries. The amounts provided for income taxes are as follows:



	Year Ended December 31,
	2016		2015			2014
Current:
U.S. Federal	$	29,185	$	40,542		$	8,809
State	7,407		13,886			2,416
	$	36,592	$	54,428		$	11,225
Deferred:
U.S. Federal	$	10,076	$	(9,943	)	$	16,484
State	2,495		(3,252		)	5,456
	12,571		(13,195		)	21,940
Total	$	49,163	$	41,233		$	33,165

The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and liabilities are as follows:



	December 31, 2016			December 31, 2015
Deferred tax assets:
Employee benefit accruals	$	17,335		$	16,201
Impairment of investments	1,534			4,332
Impact of timing of settlement payments	28,266			39,840
Various U.S. state tax loss carryforwards	6,551			6,713
Other	2,803			—
	56,489			67,086
Less: Valuation allowance	(4,439		)	(3,900		)
Net deferred tax assets	$	52,050		$	63,186

Deferred tax liabilities:
Excess of tax basis over book-basis non-consolidated entities	$	(7,494	)	$	(7,292	)
Book/tax differences on fixed and Intangible assets	(54,776		)	(52,598		)
Capitalized interest expense	(8,673		)	(4,080		)
Book/tax differences on inventory	(16,143		)	(16,891		)
Book/tax differences on long-term investments	(23,937		)	(29,701		)
Impact of accounting for convertible debt	(27,362		)	(30,494		)
Book/tax differences on available for sale securities	(6,750		)	—
Other	—			(1,559		)
	$	(145,135	)	$	(142,615	)

Net deferred tax liabilities	$	(93,085	)	$	(79,429	)

Vector Tobacco had tax effected state and local net operating loss carryforwards of $6,551 and $6,713, respectively, at December 31, 2016 and 2015, expiring through tax year 2027. The Company provides a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The valuation allowance of $4,439 and $3,900 at December 31, 2016 and 2015, respectively, consisted primarily of a reserve against Vector Tobacco’s state and local net operating loss carryforwards. The valuation allowance was decreased in 2016 and 2015, respectively, as a result of changes in estimates in Vector Tobacco’s ability to utilize state tax net operating losses in future years because of changes in state tax apportionment and projected taxable income.

The consolidated balance sheets of the Company include deferred income tax assets and liabilities, which represent temporary differences in the application of accounting rules established by generally accepted accounting principles and income tax laws.

Deferred federal income tax expense differs in 2016, 2015 and 2014 due to the nature of the items in current and deferred tax liabilities. The deferred tax expense in 2016 results primarily from the recognition of temporary differences (related to litigation accruals) at the Tobacco segment and from the capitalization of interest expense on the Company's equity method real estate investments. The deferred tax expense in 2015 results primarily from the capitalization of interest expense on the Company's equity method real estate investments. The deferred tax expense in 2014 results primarily from the recognition of temporary differences (related to litigation accruals) at the Tobacco segment.

Differences between the amounts provided for income taxes and amounts computed at the federal statutory tax rate are summarized as follows:



	Year Ended December 31,
	2016			2015			2014
Income before income taxes	$	126,429		$	107,705		$	82,279
Federal income tax expense at statutory rate	44,250			37,697			28,798
Increases (decreases) resulting from:
State income taxes, net of federal income tax benefits	6,991			6,862			4,804
Impact of non-controlling interest	(2,148		)	(2,516		)	(4,290		)
Non-deductible expenses	2,569			2,941			2,581
Impact of domestic production deduction	(2,603		)	(3,436		)	(248		)
Tax credits	(359		)	(265		)	(275		)
Other	(1,202		)	152			—
Inclusion of tax liabilities from unincorporated entities	1,126			831			1,374
Changes in valuation allowance, net of equity and tax audit adjustments	539			(1,033		)	421
Income tax expense	$	49,163		$	41,233		$	33,165

The following table summarizes the activity related to the unrecognized tax benefits:



Balance at January 1, 2014	$	3,122
Additions based on tax positions related to prior years	318
Settlements	(442		)
Expirations of the statute of limitations	(1,254		)
Balance at December 31, 2014	1,744
Additions based on tax positions related to prior years	265
Settlements	(132		)
Expirations of the statute of limitations	(354		)
Balance at December 31, 2015	1,523
Additions based on tax positions related to prior years	72
Settlements	(119		)
Expirations of the statute of limitations	(961		)
Balance at December 31, 2016	$	515

In the event the unrecognized tax benefits of $515 and $1,523 at December 31, 2016 and 2015, respectively, were recognized, such recognition would impact the annual effective tax rates. During 2016, the accrual for potential penalties and interest related to these unrecognized tax benefits was decreased by $74, and in total, as of December 31, 2016, a liability for potential penalties and interest of $145 has been recorded. During 2015, the accrual for potential penalties and interest related to these unrecognized tax benefits was decreased by $28, and in total, as of December 31, 2015, a liability for potential penalties and interest of $219 has been recorded.

It is reasonably possible the Company may recognize up to approximately $170 of currently unrecognized tax benefits over the next 12 months, pertaining primarily to expiration of statutes of limitations of positions reported on state and local income tax returns. The Company files U.S. and state and local income tax returns in jurisdictions with varying statutes of limitations.

Stock Compensation

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation

STOCK COMPENSATION

The Company granted equity compensation under its Amended and Restated 1999 Long-Term Incentive Plan (the “1999 Plan”) until the 1999 Plan expired on December 31, 2013. On May 16, 2014, the Company's stockholders approved the 2014 Management Incentive Plan (the “2014 Plan”). The 2014 Plan replaced the 1999 Plan. Like the 1999 Plan, the 2014 Plan provides for the Company to grant stock options, stock appreciation rights and restricted stock. The 2014 Plan also provides for awards based on a multi-year performance period and for annual short-term awards based on a twelve-month performance period. Shares available for issuance under the 2014 Plan are 7,823,451 shares. The Company may satisfy its obligations under any award granted under the 2014 Plan by issuing new shares. Awards previously granted under the 1999 Plan remain outstanding in accordance with their terms.

Stock Options. The Company recognized compensation expense of $2,203, $1,675 and $1,573 related to stock options in the years ended December 31, 2016, 2015 and 2014, respectively.

All awards have a contractual term of ten years and awards vest over a period of three to seven years depending upon each grant. The fair value of option grants is estimated at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including expected stock price characteristics which are significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, the existing models do not necessarily provide a reliable single measure of the fair value of stock-based compensation awards.

The assumptions used under the Black-Scholes option pricing model in computing fair value of options are based on the expected option life considering both the contractual term of the option and expected employee exercise behavior, the interest rate associated with U.S. Treasury issues with a remaining term equal to the expected option life and the expected volatility of the Company’s common stock over the expected term of the option. The assumptions used for grants in the years ended December 31, 2016, 2015 and 2014 were as follows:



	2016		2015		2014
Risk-free interest rate	1.5% -1.7%		1.8% -2.0%		1.1% -2.6%
Expected volatility	16.49% - 18.13%		22.18% - 22.25%		18.51% - 22.37%
Dividend yield	0.0	%	0.0	%	0.0	%
Expected holding period	7.00 – 10.00 years		7.00 – 10.00 years		4.00 – 10.00 years
Weighted-average grant date fair value (1)	$5.09 - $6.88		$6.47 - $8.07		$3.28 - $7.32

(1) Per share amounts have not been adjusted to give effect to the stock dividends in 2016, 2015 and 2014.

A summary of employee stock option transactions follows:



	Number of Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value(1)
Outstanding on January 1, 2014	3,643,316		$	11.41	6.5	$	9,959
Granted	448,580		$	16.97
Exercised	(464,877	)	$	10.87
Canceled	(13	)	$	—
Outstanding on December 31, 2014	3,627,006		$	12.16	6.4	$	25,977
Granted	427,219		$	20.95
Exercised	(121,308	)	$	11.45
Canceled	(5	)	$	—
Outstanding on December 31, 2015	3,932,912		$	13.16	5.9	$	36,612
Granted	406,875		$	22.13
Exercised	(33,501	)	$	11.87
Canceled	(6	)	$	—
Outstanding on December 31, 2016	4,306,280		$	14.02	5.3	$	37,557
Options exercisable at:
December 31, 2014	1,678,829
December 31, 2015	2,137,112
December 31, 2016	2,111,985

_____________________________


(1)	The aggregate intrinsic value represents the amount by which the fair value of the underlying common stock ($22.74, $22.47 and $19.33 at December 31, 2016, 2015 and 2014, respectively) exceeds the option exercise price.

Additional information relating to options outstanding at December 31, 2016 follows:



			Options Outstanding				Options Exercisable
Range of Exercise Prices			Outstanding as of	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Exercisable as of	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Aggregate Intrinsic Value
Range of Exercise Prices			12/31/2016	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		12/31/2016	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Aggregate Intrinsic Value
$8.85	-	$11.07	1,575,948	2.9	$	10.02	1,575,948	2.9	$	10.02	$	—
$11.07	-	$13.28	1,447,663	5.4	$	13.13	536,037	4.0	$	12.88	—
$13.28	-	$15.49	—	—	$	—	—	—	$	—	—
$15.49	-	$17.70	448,577	7.4	$	16.98	—	—	$	—	—
$17.70	-	$19.92	—	—	$	—	—	—	$	—	—
$19.92	-	$22.13	834,092	8.6	$	21.53	—	—	$	—	—
			4,306,280	5.3	$	14.02	2,111,985	3.2	$	10.81	$	25,331

As of December 31, 2016, there was $3,680 of total unrecognized compensation cost related to unvested stock options. The cost is expected to be recognized over a weighted-average period of approximately 1.31 years at December 31, 2016.

The Company reflects the tax savings resulting from tax deductions in excess of expense reflected in its consolidated financial statements as a component of “Cash Flows from Financing Activities.”

Non-qualified options for 406,875 shares of common stock were issued during 2016. The exercise price of the options granted was $22.13 in 2016. The exercise price of the options granted in 2016 were at the fair value on the date of the grants.

Non-qualified options for 427,219 shares of common stock were issued during 2015. The exercise price of the options granted was $20.95 in 2015. The exercise price of the options granted in 2015 were at the fair value on the date of the grants.

Non-qualified options for 448,580 shares of common stock were issued during 2014. The exercise price of the options granted was $16.97 in 2014. The exercise price of the options granted in 2014 were at the fair value on the date of the grants.

The Company has elected to use the long-form method under which each award grant is tracked on an employee-by-employee basis and grant-by-grant basis to determine if there is a tax benefit or tax deficiency for such award. The Company then compares the fair value expense to the tax deduction received for each grant and aggregates the benefits and deficiencies to establish its hypothetical APIC Pool.

The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders’ deficiency only when realized. A windfall tax benefit occurs when the actual tax benefit realized by the Company upon an employee’s disposition of a share-based award exceeds the deferred tax asset, if any, associated with the award that the Company had recorded.

The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was $309, $1,151 and $3,539, respectively. Tax benefits related to option exercises of $116, $821 and $1,178 were recorded as increases to stockholders’ deficiency for the years ended December 31, 2016, 2015 and 2014, respectively.

Restricted Stock Awards. On April 2016, the Company granted 52,500 restricted shares of the Company’s common stock (the “April 2016 Grant”) pursuant to the 1999 Plan to each of its five outside directors. The shares vest over three years and the Company will recognize $1,054 of expense over the vesting period of the April 2016 grant. The Company recognized expense of $236 for the year ended December 31, 2016.

On November 10, 2015, the Company granted its President and Chief Executive Officer an award of 1,260,000 shares of its common stock subject to service and performance-based vesting. The award shares were issued pursuant to the terms of an agreement that provides that both a performance requirement and a continued employment requirement must be met over a seven-year performance period to earn vested rights with respect to the award shares. The maximum potential amount of the award shares reflects recognition of the CEO’s contributions as CEO since January 1, 2006 and the value of his management and real estate expertise to the Company. The fair market value of the restricted shares on the date of grant was $28,374 and is being amortized over the performance period as a charge to compensation expense. The Company recognized expense of $4,278 and $597 for the years ended December 31, 2016 and 2015, respectively.

On July 23, 2014, the Company granted its President and Chief Executive Officer an award of 1,157,625 shares of its common stock subject to service and performance-based vesting. The award shares were issued pursuant to the terms of an agreement that provides that both a performance requirement and a continued employment requirement must be met over a seven-year performance period to earn vested rights with respect to the award shares. The maximum potential amount of the award shares reflects recognition of the CEO’s contributions as CEO since January 1, 2006 and the value of his management and real estate expertise to the Company. The fair market value of the restricted shares on the date of grant was $20,780 and is being amortized over the performance period as a charge to compensation expense. The Company recognized expense of $3,122, $2,992 and $1,320 for the years ended December 31, 2016, 2015 and 2014, respectively.

In May 2013, the Company granted 12,155 restricted shares of the Company’s common stock (the “May 2013 Grant”) pursuant to the 1999 Plan to each of its five outside directors. The shares vested over three years and the Company recognized $815 of expense over the vesting period of the May 2013 Grant. The Company recognized expense of $111, $272 and $271 for the years ended December 31, 2016, 2015 and 2014, respectively.

In October 2013, the President and Chief Executive Officer of Liggett and Liggett Vector Brands was awarded a restricted stock grant of 31,835 shares of Vector’s common stock pursuant to the 1999 Plan. The shares will vest on the earlier of March 15, 2019, contingent upon performance-based targets being achieved by the Company’s Tobacco segment, or October 31, 2020, if the performance-based targets are not achieved. He will receive dividends on the restricted shares as paid. In the event that his employment with the Company is terminated for any reason other than his death, his disability or a change of control (as defined in this Restricted Share Agreement) of the Company, any remaining balance of the shares not previously vested will be forfeited by him. The fair market value of the restricted shares on the date of grant was $458 and is being amortized over the vesting period as a charge to compensation expense. The Company recognized expense of $85, $86 and $86 for the years ended December 31, 2016, 2015 and 2014, respectively.

As of December 31, 2016, there was $37,853 of total unrecognized compensation costs related to unvested restricted stock awards. The cost is expected to be recognized over a weighted-average period of approximately 2.74 years.

As of December 31, 2015, there was $44,632 of total unrecognized compensation costs related to unvested restricted stock awards.

The Company’s accounting policy is to treat dividends paid on unvested restricted stock as a reduction to additional paid-in capital on the Company’s consolidated balance sheet.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Commitments and Contingencies Disclosure [Abstract]

Contingencies

12 Months Ended

Dec. 31, 2016

Contingencies

CONTINGENCIES

Tobacco-Related Litigation:

Overview. Since 1954, Liggett and other United States cigarette manufacturers have been named as defendants in numerous direct, third-party and purported class actions predicated on the theory that cigarette manufacturers should be liable for damages alleged to have been caused by cigarette smoking or by exposure to secondary smoke from cigarettes. The cases have generally fallen into the following categories: (i) smoking and health cases alleging personal injury brought on behalf of individual plaintiffs (“Individual Actions”); (ii) lawsuits by individuals requesting the benefit of the Engle ruling (“Engle progeny cases”); (iii) smoking and health cases primarily alleging personal injury or seeking court-supervised programs for ongoing medical monitoring, as well as cases alleging that use of the terms “lights” and/or “ultra lights” constitutes a deceptive and unfair trade practice, common law fraud or violation of federal law, purporting to be brought on behalf of a class of individual plaintiffs (“Class Actions”); and (iv) health care cost recovery actions brought by various foreign and domestic governmental plaintiffs and non-governmental plaintiffs seeking reimbursement for health care expenditures allegedly caused by cigarette smoking and/or disgorgement of profits (“Health Care Cost Recovery Actions”). The future financial impact of the risks and expenses of litigation are not quantifiable. For the years ended December 31, 2016, 2015 and 2014, Liggett incurred tobacco product liability legal expenses and costs totaling $26,611, $26,987 and $9,944, respectively. The 2016 total includes $17,650 for the December 2016 settlement of 124 Engle progeny cases. The tobacco product liability legal expenses and costs are included in the operating, selling, administrative and general expenses and litigation settlement and judgment expense line items in the Condensed Consolidated Statements of Operations. Legal defense costs are expensed as incurred.

Litigation is subject to uncertainty and it is possible that there could be adverse developments in pending cases. With the commencement of new cases, the defense costs and the risks relating to the unpredictability of litigation increase. Management reviews on a quarterly basis with counsel all pending litigation and evaluates the probability of a loss being incurred and whether an estimate can be made of the possible loss or range of loss that could result from an unfavorable outcome. An unfavorable outcome or settlement of pending tobacco-related litigation could encourage the commencement of additional litigation. Damages awarded in tobacco-related litigation can be significant.

Bonds. Although Liggett has been able to obtain required bonds or relief from bonding requirements in order to prevent plaintiffs from seeking to collect judgments while adverse verdicts are on appeal, there remains a risk that such relief may not be obtainable in all cases. This risk has been reduced given that a majority of states now limit the dollar amount of bonds or require no bond at all. To obtain stays on judgments pending current appeals of the Calloway, Boatright and Ward cases Liggett, as of December 31, 2016, had secured $4,241 in bonds.

In June 2009, Florida amended its existing bond cap statute by adding a $200,000 bond cap that applies to all Engle progeny cases in the aggregate and establishes individual bond caps for individual Engle progeny cases in amounts that vary depending on the number of judgments in effect at a given time. The maximum amount of any such bond for an appeal in the Florida state courts will be no greater than $5,000. In several cases, plaintiffs challenged the constitutionality of the bond cap statute, but to date the courts have upheld the constitutionality of the statute. It is possible that the Company’s consolidated financial position, results of operations, and cash flows could be materially adversely affected by an unfavorable outcome of such challenges.

Accounting Policy. The Company and its subsidiaries record provisions in their consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable and the amount of loss can be reasonably estimated. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, except as disclosed in this Note 15: (i) management has concluded that it is not probable that a loss has been incurred in any of the pending tobacco-related cases; or (ii) management is unable to reasonably estimate the possible loss or range of loss that could result from an unfavorable outcome of any of the pending tobacco-related cases and, therefore, management has not provided any amounts in the consolidated financial statements for unfavorable outcomes, if any.

Cautionary Statement About Engle Progeny Cases. Since 2009, judgments have been entered against Liggett and other industry defendants in more than 120 Engle progeny cases. A number of the judgments have been affirmed on appeal and satisfied by the defendants. Many have been overturned on appeal. As of December 31, 2016, 24 Engle progeny cases where Liggett was a defendant at trial resulted in verdicts. Fifteen verdicts were returned in favor of the plaintiffs (although in two of these cases (Irimi and Cohen) the court granted defendants' motion for a new trial) and nine in favor of Liggett. In four of the cases, punitive damages were awarded against Liggett (although in Calloway, the intermediate appellate court reversed the punitive and compensatory damages awards and remanded the case to the trial court for a new trial). In certain cases, the judgments were entered jointly and severally with other defendants and Liggett may face the risk that one or more co-defendants decline or otherwise fail to participate in the bonding required for an appeal or to pay their proportionate or jury-allocated share of a judgment. As a result, under certain circumstances, Liggett may have to pay more than its proportionate share of any bonding or judgment related amounts. Except as discussed in this Note 15 regarding the cases where an adverse verdict against Liggett remains on appeal, management is unable to estimate the possible loss or range of loss from the remaining Engle progeny cases as there are currently multiple defendants in each case and, in most cases, discovery has not occurred or is limited. As a result, the Company lacks information about whether plaintiffs are in fact Engle class members (non-class members’ claims are generally time-barred), the relevant smoking history, the nature of the alleged injury and the availability of various defenses, among other things. Further, plaintiffs typically do not specify their demand for damages.

Although Liggett has generally been successful in managing litigation, litigation is subject to uncertainty and significant challenges remain, including with respect to the remaining Engle progeny cases. There can be no assurances that Liggett’s past litigation experience will be representative of future results. Judgments have been entered against Liggett in the past, in Individual Actions and Engle progeny cases, and several of those judgments were affirmed on appeal and satisfied by Liggett. It is possible that the consolidated financial position, results of operations and cash flows of the Company could be materially adversely affected by an unfavorable outcome or settlement of any of the remaining smoking-related litigation. Liggett believes, and has been so advised by counsel, that it has valid defenses to the litigation pending against it, as well as valid bases for appeal of adverse verdicts. All such cases are and will continue to be vigorously defended, however, Liggett has entered into settlement discussions in individual cases or groups of cases where Liggett has determined it was in its best interest to do so, and it may continue to do so in the future, including with respect to the remaining Engle progeny cases. In October 2013, Liggett announced a settlement of the claims of more than 4,900 Engle progeny plaintiffs (see Engle Progeny Settlement I below). On December 7, 2016, Liggett entered into an agreement to settle 124 Engle progeny cases for $17,650 (see Engle Progeny Settlement II below). As of December 31, 2016, Liggett (and in certain cases the Company) had, on an individual basis, settled 177 Engle progeny cases for approximately $6,025 in the aggregate, one of which occurred in the fourth quarter of 2016.

Individual Actions

As of December 31, 2016, there were 35 Individual Actions pending against Liggett and, in certain cases, the Company, where one or more individual plaintiffs allege injury resulting from cigarette smoking, addiction to cigarette smoking or exposure to secondary smoke and seek compensatory and, in some cases, punitive damages. These cases do not include the remaining Engle progeny cases or the individual cases pending in West Virginia state court as part of a consolidated action. The following table lists the number of Individual Actions by state:



State		Number of Cases
Maryland		16
Florida		7
New York		6
Louisiana		2
West Virginia		2
Missouri		1
Ohio		1

The plaintiffs’ allegations of liability in cases in which individuals seek recovery for injuries allegedly caused by cigarette smoking are based on various theories of recovery, including negligence, gross negligence, breach of special duty, strict liability, fraud, concealment, misrepresentation, design defect, failure to warn, breach of express and implied warranties, conspiracy, aiding and abetting, concert of action, unjust enrichment, common law public nuisance, property damage, invasion of privacy, mental anguish, emotional distress, disability, shock, indemnity, violations of deceptive trade practice laws, the federal Racketeer Influenced and Corrupt Organizations Act (“RICO”), state RICO statutes and antitrust statutes. In many of these cases, in addition to compensatory damages, plaintiffs also seek other forms of relief including treble/multiple damages, medical monitoring, disgorgement of profits and punitive damages. Although alleged damages often are not determinable from a complaint, and the law governing the pleading and calculation of damages varies from state to state and jurisdiction to jurisdiction, compensatory and punitive damages have been specifically pleaded in a number of cases, sometimes in amounts ranging into the hundreds of millions and even billions of dollars.

Defenses raised in Individual Actions include lack of proximate cause, assumption of the risk, comparative fault and/or contributory negligence, lack of design defect, statute of limitations, equitable defenses such as “unclean hands” and lack of benefit, failure to state a claim and federal preemption.

Engle Progeny Cases

Engle Case. In May 1994, Engle was filed against Liggett and others in Miami-Dade County, Florida. The class consisted of all Florida residents who, by November 21, 1996, “have suffered, presently suffer or have died from diseases and medical conditions caused by their addiction to cigarette smoking.” In July 1999, after the conclusion of Phase I of the trial, the jury returned a verdict against Liggett and other cigarette manufacturers on certain issues determined by the trial court to be “common” to the causes of action of the plaintiff class. The jury made several findings adverse to the defendants including that defendants’ conduct “rose to a level that would permit a potential award or entitlement to punitive damages.” Phase II of the trial was a causation and damages trial for three of the class plaintiffs and a punitive damages trial on a class-wide basis before the same jury that returned the verdict in Phase I. In April 2000, the jury awarded compensatory damages of $12,704 to the three class plaintiffs, to be reduced in proportion to the respective plaintiff’s fault. In July 2000, the jury awarded approximately $145,000,000 in punitive damages, including $790,000 against Liggett.

In May 2003, Florida’s Third District Court of Appeal reversed the trial court and remanded the case with instructions to decertify the class. The judgment in favor of one of the three class plaintiffs, in the amount of $5,831, was overturned as time barred and the court found that Liggett was not liable to the other two class plaintiffs.

In July 2006, the Florida Supreme Court affirmed the decision vacating the punitive damages award and held that the class should be decertified prospectively, but determined that the following Phase I findings are entitled to res judicata effect in Engle progeny cases: (i) that smoking causes lung cancer, among other diseases; (ii) that nicotine in cigarettes is addictive; (iii) that defendants placed cigarettes on the market that were defective and unreasonably dangerous; (iv) that defendants concealed material information knowing that the information was false or misleading or failed to disclose a material fact concerning the health effects or addictive nature of smoking; (v) that defendants agreed to conceal or omit information regarding the health effects of cigarettes or their addictive nature with the intention that smokers would rely on the information to their detriment; (vi) that defendants sold or supplied cigarettes that were defective; and (vii) that defendants were negligent. The Florida Supreme Court decision also allowed former class members to proceed to trial on individual liability issues (using the above findings) and compensatory and punitive damages issues. In December 2006, the Florida Supreme Court added the finding that defendants sold or supplied cigarettes that, at the time of sale or supply, did not conform to the representations made by defendants. In October 2007, the United States Supreme Court denied defendants’ petition for writ of certiorari.

Pursuant to the Florida Supreme Court’s July 2006 ruling in Engle, which decertified the class on a prospective basis and affirmed the appellate court’s reversal of the punitive damages award, former class members had until January 2008 in which to file individual lawsuits. As a result, Liggett and the Company, and other cigarette manufacturers, were sued in thousands of Engle progeny cases in both federal and state courts in Florida. Although the Company was not named as a defendant in the Engle case, it was named as a defendant in substantially all of the Engle progeny cases where Liggett was named as a defendant.

Engle Progeny Settlement I. In October 2013, the Company and Liggett entered into a settlement with approximately 4,900 Engle progeny plaintiffs and their counsel. Pursuant to the terms of the settlement, Liggett agreed to pay a total of approximately $110,000, with approximately $61,600 paid in a lump sum and the balance to be paid in installments over 14 years, starting in February 2015. In exchange, the claims of more than 4,900 plaintiffs, including the claims of all plaintiffs with cases pending in federal court, were dismissed with prejudice against the Company and Liggett. Due to the settlement, in 2013, the Company recorded a charge of $86,213 of which approximately $25,000 is related to certain payments discounted to their present value using an 11% annual discount rate. The installment payments total approximately $48,000 on an undiscounted basis. The Company’s future payments will be approximately $3,400 per annum through 2028, with a cost of living increase beginning in 2021.

Engle Progeny Settlement II. On December 7, 2016, the Company and Liggett entered into an agreement with 124 Engle progeny plaintiffs and their counsel. Pursuant to the terms of the settlement, Liggett agreed to pay $17,650, $14,000 of which was paid on December 7, 2016 with the balance of $3,650 to be paid in equal quarterly payments starting in January 2018, with 5% interest. Due to the settlement, in the fourth quarter of 2016, the Company recorded a charge of $17,650.

Notwithstanding the comprehensive nature of the Engle Progeny Settlements, approximately 125 plaintiffs’ claims remain pending in state court. Therefore, the Company and Liggett may still be subject to periodic adverse judgments which could have a material adverse affect on the Company’s consolidated financial position, results of operations and cash flows.

As of December 31, 2016, the following Engle progeny cases have resulted in judgments against Liggett:



Date	Case Name	County	Liggett Compensatory Damages (as adjusted)⁽¹⁾	Liggett Punitive Damages	Status ⁽²⁾
June 2002	Lukacs v. R.J. Reynolds	Miami-Dade	$12,418	$—	Liggett satisfied the judgment and the case is concluded.
August 2009	Campbell v. R.J. Reynolds	Escambia	156	—	Liggett satisfied the judgment and the case is concluded.
March 2010	Douglas v. R.J. Reynolds	Hillsborough	1,350	—	Liggett satisfied the judgment and the case is concluded.
April 2010	Clay v. R.J. Reynolds	Escambia	349	1,000	Liggett satisfied the judgment and the case is concluded.
April 2010	Putney v. R.J. Reynolds	Broward	17	—	On June 12, 2013, the Fourth District Court of Appeal reversed and remanded the case for further proceedings regarding the amount of the award. Both sides sought discretionary review from the Florida Supreme Court. In February 2016, the Florida Supreme Court reinstated the jury's verdict. The defendants moved for clarification of that order. The court clarified that it reversed the district court's decision regarding the statute of repose only, leaving the remaining portions of the decision intact, which, among other things, reversed an approximately $3,000 compensatory award against Liggett. The case was remanded to the trial court for proceedings consistent with those portions of the district court's decision that were not reversed. A hearing is scheduled on March 14, 2017.
April 2011	Tullo v. R.J. Reynolds	Palm Beach	225	—	Liggett satisfied the judgment and the case is concluded.
January 2012	Ward v. R.J. Reynolds	Escambia	1	—	Liggett satisfied the merits judgment. Subsequently, the trial court entered a joint and several final judgment on attorneys' fees and costs for $981 and defendants appealed that judgment. Briefing is underway.
May 2012	Calloway v. R.J. Reynolds	Broward	—	—	A joint and several judgment for $16,100 was entered against R.J. Reynolds, Philip Morris, Lorillard and Liggett. On January 6, 2016, the Fourth District Court of Appeal reversed in part, including the $7,600 punitive damages award against Liggett, and remanded the case to the trial court for a new trial on certain issues. Both sides moved for rehearing and in September 2016, the appellate court reversed the judgment in its entirety and remanded the case for a new trial. As a result, the $1,530 compensatory award against Liggett was reversed. The plaintiff filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court.
					Any potential liability as a result of the pending appeal is included in the amount Liggett will pay under Engle Progeny Settlement II.
December 2012	Buchanan v. R.J. Reynolds	Leon	2,750	—	Liggett satisfied the judgment and the case is concluded.
May 2013	D. Cohen v. R.J. Reynolds	Palm Beach	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
August 2013	Rizzuto v. R.J. Reynolds	Hernando	3,479	—	Liggett settled its portion of the judgment for $1,500 and the case is concluded as to Liggett.
August 2014	Irimi v. R.J. Reynolds	Broward	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
October 2014	Lambert v. R.J. Reynolds	Pinellas	3,600	9,500	Liggett satisfied the judgment and the case is concluded.
November 2014	Boatright v. R.J. Reynolds	Polk	—	300	In November 2014, the jury awarded compensatory damages in the amount of $15,000 with 15% fault apportioned to plaintiff and 85% to Philip Morris. The jury further assessed punitive damages against Philip Morris for $19,700 and Liggett for $300. Post trial motions were denied. A joint and several judgment was entered in the amount of $12,750 on the compensatory damages. Judgment was further entered against Liggett for $300 in punitive damages. Defendants appealed and plaintiff cross-appealed. Oral argument occurred on October 18, 2016. A decision is pending.
					Any potential liability as a result of the pending appeal is included in the amount Liggett will pay under Engle Progeny Settlement II.
June 2015	Caprio v. R.J. Reynolds	Broward	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
Total Damages Awarded:			24,345	10,800
Amounts accrued, paid or compromised:			(24,328)	(10,800)
Damages remaining on Appeal:			$17	$0
(1) Compensatory damages are adjusted to reflect the jury's allocation of comparative fault and only include Liggett's jury allocated share, regardless of whether a judgment was joint and several. The amounts listed above do not include attorneys' fees or statutory interest.
(2) See Exhibit 99.1 for a more complete description of the cases currently on appeal.

Through December 31, 2016, Liggett paid $39,773, including interest and attorneys' fees, to satisfy the judgments in the following Engle progeny cases: Lukacs, Campbell, Douglas, Clay, Tullo, Ward, Rizzuto, Lambert and Buchanan.

Except as disclosed elsewhere in this Note 15, the Company is unable to determine a range of loss related to the remaining Engle progeny cases. As cases proceed through the appellate process, the Company will consider accruals on a case-by-case basis if an unfavorable outcome becomes probable and the amount can be reasonably estimated.

Appeals of Engle Progeny Judgments. In December 2010, in the Martin case, a state court case against R.J. Reynolds, the First District Court of Appeal held that the trial court correctly construed the Florida Supreme Court’s 2006 decision in Engle in instructing the jury on the preclusive effect of the Phase I Engle findings. In July 2011, the Florida Supreme Court declined to review the First District Court of Appeal’s decision. In March 2012, the United States Supreme Court declined to review the Martin case, along with the Campbell case and two other Engle progeny cases. The Martin decision has led to additional adverse rulings by other state appellate courts.

In Jimmie Lee Brown, a state court case against R.J. Reynolds, the trial court tried the case in two phases. In the first phase, the jury determined that the smoker was addicted to cigarettes that contained nicotine and that his addiction was a legal cause of his death, thereby establishing he was an Engle class member. In the second phase, the jury determined whether the plaintiff established legal cause and damages with regard to each of the underlying claims. The jury found in favor of plaintiff in both phases. In September 2011, the Fourth District Court of Appeal affirmed the judgment entered in plaintiff’s favor and approved the trial court’s procedure of bifurcating the trial. The Fourth District Court of Appeal agreed with Martin that individual post-Engle plaintiffs need not prove conduct elements as part of their burden of proof, but disagreed with Martin to the extent that the First District Court of Appeal only required a finding that the smoker was a class member to establish legal causation as to addiction and the underlying claims. The Fourth District Court of Appeal held that in addition to establishing class membership, Engle progeny plaintiffs must also establish legal causation and damages as to each claim asserted. In so finding, the Fourth District Court of Appeal’s decision in Jimmie Lee Brown is in conflict with Martin.

In Rey, a state court case, the trial court entered final summary judgment on all claims in favor of the Company, Liggett and Lorillard based on what has been referred to in the Engle progeny litigation as the “Liggett Rule.” The Liggett Rule stands for the proposition that a manufacturer cannot have liability to a smoker under any asserted claim if the smoker did not use a product manufactured by that particular defendant. The Liggett Rule is based on the entry of final judgment in favor of Liggett/Brooke Group in Engle on all of the claims asserted against them by class representatives Mary Farnan and Angie Della Vecchia, even though the Florida Supreme Court upheld, as res judicata, the generic finding that Liggett/Brooke Group engaged in a conspiracy to commit fraud by concealment. In September 2011, the Third District Court of Appeal affirmed in part and reversed in part holding that the defendants were entitled to summary judgment on all claims asserted against them other than the claim for civil conspiracy. Defendants’ further appellate efforts were unsuccessful.

In Douglas, a state court case, the Second District Court of Appeal issued a decision affirming the judgment of the trial court in favor of the plaintiff and upholding the use of the Engle jury findings, but certified to the Florida Supreme Court the question of whether granting res judicata effect to the Engle jury findings violates defendants’ federal due process rights. In March 2013, the Florida Supreme Court affirmed the use of Engle jury findings and determined that there is no violation of the defendants’ due process rights. This was the first time the Florida Supreme Court addressed the merits of an Engle progeny case. In October 2013, the United States Supreme Court declined to review the decision and Liggett satisfied the judgment. To date, the United States Supreme Court has declined to review any Engle progeny decisions.

In April 2015, in Hess, a state court case, the Florida Supreme Court held that Engle defendants cannot raise a statute of repose defense to claims for concealment or conspiracy.

In April 2015, in Graham, a federal case, the Eleventh Circuit held that federal law impliedly preempts use of the res judicata Engle findings to establish claims for strict liability or negligence. In January 2016, the Eleventh Circuit Court of Appeals granted the plaintiff’s motion for rehearing en banc and vacated the panel's decision. Defendants filed a motion requesting that the court enter a briefing order directing the parties to address both implied preemption and whether the application of the Engle findings violates federal due process. Oral argument on rehearing occurred in June 2016 and a decision is pending.

In November 2015, in Schoeff, the Fourth District Court of Appeal affirmed the trial court’s decision to reduce plaintiff’s compensatory damages award by the jury’s assessment of the deceased smoker’s assigned comparative fault despite the jury’s finding in favor of plaintiff on her claims for intentional torts. The Florida Supreme Court accepted discretionary jurisdiction of the issue based on a direct conflict with other district courts of appeal which have held that reduction of a compensatory damages award is inappropriate where a defendant is found liable for an intentional tort. Oral argument is scheduled for March 8, 2017.

In January 2016, in Marotta, the Fourth District Court of Appeal disagreed with the Graham panel's decision. The Florida Supreme Court accepted jurisdiction in Marotta. Oral argument occurred in November 2016 and a decision is pending.

In March 2016, in Soffer, the Florida Supreme Court held that Engle progeny plaintiffs may seek punitive damages on their claims for non-intentional torts, rejecting the argument that plaintiffs are precluded from doing so because the Engle class did not pursue such damages on those claims.

Maryland Cases

Liggett is currently a defendant in 16 multi-defendant personal injury cases in Maryland that allege claims arising from asbestos and tobacco exposure. The tobacco defendants, including Liggett, moved (or are in the process of moving) to dismiss the cases. In the past, motions to dismiss have generally been successful, typically resulting in the dismissal without prejudice of the tobacco company defendants. Recently, however, a Maryland intermediate appellate court ruled, in Stidham, et al. v. R. J. Reynolds Tobacco Company, et al., that dismissal of tobacco company defendants may not be appropriate where the asserted injury is based on both asbestos and tobacco exposure ("synergy cases"). In May 2016, the Court of Appeals for Maryland (Maryland's highest court) heard oral argument on the appeal of the intermediate appellate court's decision. In July 2016, the Court of Appeals ruled that joinder of tobacco and asbestos cases may be possible in certain circumstances, but plaintiffs must demonstrate at the trial court level how such cases may be joined while providing appropriate safeguards to prevent embarrassment, delay, expense or prejudice to defendants and "the extent to which, if at all, the special procedures applicable to asbestos cases should extend to tobacco companies." The Court of Appeals remanded these issues to be determined at the trial court level. It is possible that Liggett and other tobacco company defendants will not be dismissed from pending synergy cases, and may be named as defendants in asbestos-related personal injury actions in Maryland going forward, including approximately 20 additional synergy cases currently pending in Maryland state court.

Liggett Only Cases

There are currently three cases pending where Liggett is the only remaining defendant. Each of these cases is an Individual Action. There has been no recent activity in two of the cases. It is possible that cases where Liggett is the only defendant could increase as a result of the remaining Engle progeny cases.

Class Actions

As of December 31, 2016, three actions were pending for which either a class had been certified or plaintiffs were seeking class certification where Liggett is a named defendant. Other cigarette manufacturers are also named in these actions.

Plaintiffs’ allegations of liability in class action cases are based on various theories of recovery, including negligence, gross negligence, strict liability, fraud, misrepresentation, design defect, failure to warn, nuisance, breach of express and implied warranties, breach of special duty, conspiracy, concert of action, violation of deceptive trade practice laws and consumer protection statutes and claims under the federal and state anti-racketeering statutes. Plaintiffs in the class actions seek various forms of relief, including compensatory and punitive damages, treble/multiple damages and other statutory damages and penalties, creation of medical monitoring and smoking cessation funds, disgorgement of profits, and injunctive and equitable relief.

Defenses raised in these cases include, among others, lack of proximate cause, individual issues predominate, assumption of the risk, comparative fault and/or contributory negligence, statute of limitations and federal preemption.

In November 1997, in Young v. American Tobacco Co., a purported personal injury class action was commenced on behalf of plaintiff and all similarly situated residents in Louisiana who, though not themselves cigarette smokers, allege they were exposed to secondhand smoke from cigarettes that were manufactured by the defendants, including Liggett, and suffered injury as a result of that exposure. The plaintiffs seek to recover an unspecified amount of compensatory and punitive damages. No class certification hearing has been held. The case has been stayed for a number of years, with the stay renewed every few years. The last stay was entered on March 16, 2016 and stays the case, including all discovery, pending the completion of the smoking cessation program ordered by the court in Scott v. The American Tobacco Co.

In February 1998, in Parsons v. AC & S Inc., a purported class action was commenced on behalf of all West Virginia residents who allegedly have personal injury claims arising from exposure to cigarette smoke and asbestos fibers. The complaint seeks to recover $1,000 in compensatory and punitive damages individually and unspecified compensatory and punitive damages for the class. The case is stayed due to the December 2000 bankruptcy of three of the defendants.

Although not technically a class action, in In Re: Tobacco Litigation (Personal Injury Cases), a West Virginia state court consolidated approximately 750 individual smoker actions that were pending prior to 2001 for trial of certain "common" issues. Liggett was severed from trial of the consolidated action. After two mistrials, in May 2013, the jury rejected all but one of the plaintiffs' claims, finding in favor of plaintiffs on the claim that ventilated filter cigarettes between 1964 and July 1, 1969 should have included instructions on how to use them. The issue of damages was reserved for further proceedings. The court entered judgment in October 2013, dismissing all claims except the ventilated filter claim. The judgment was affirmed on appeal and remanded to the trial court for further proceedings. In April 2015, the plaintiffs filed a petition for writ of certiorari to the United States Supreme Court which subsequently declined review. In July 2015, the trial court ruled on the scope of the ventilated filter claim and determined that only 30 plaintiffs have potentially viable claims against the non-Liggett defendants, which may be pursued in a second phase of the trial. The court intends to try the claims of these plaintiffs in six consolidated trials, each with five plaintiffs. With respect to Liggett, the trial court requested that Liggett and plaintiffs brief whether any claims against Liggett survive given the outcome of the first phase of the trial. On May 23, 2016, the trial court ruled that the case may proceed against Liggett. Liggett requested that the trial court certify the matter to the West Virginia Supreme Court of Appeals for review, but the trial court refused. A scheduling order was entered governing the Phase I common issues pre-trial proceedings and discovery is underway. It is estimated that Liggett could be a defendant in approximately 90 individual cases.

In addition to the cases described above, numerous class actions remain certified against other cigarette manufacturers including cases alleging, among other things, that use of the terms “lights” and “ultra lights” constitutes unfair and deceptive trade practices. Adverse decisions in these cases could have a material adverse affect on Liggett’s sales volume, operating income and cash flows.

Health Care Cost Recovery Actions

As of December 31, 2016, one Health Care Cost Recovery Action was pending against Liggett, Crow Creek Sioux Tribe v. American Tobacco Company, a South Dakota case filed in 1997, where the plaintiff seeks to recover damages based on various theories of recovery as a result of alleged sales of tobacco products to minors. The case is inactive. Other cigarette manufacturers are also named as defendants.

The claims asserted in health care cost recovery actions vary, but can include the equitable claim of indemnity, common law claims of negligence, strict liability, breach of express and implied warranty, breach of special duty, fraud, negligent misrepresentation, conspiracy, public nuisance, claims under state and federal statutes governing consumer fraud, antitrust, deceptive trade practices and false advertising, and claims under RICO. Although no specific damage amounts are typically pleaded, it is possible that requested damages might be in the billions of dollars. In these cases, plaintiffs typically assert equitable claims that the tobacco industry was “unjustly enriched” by their payment of health care costs allegedly attributable to smoking and seek reimbursement of those costs. Relief sought by some, but not all, plaintiffs include punitive damages, multiple damages and other statutory damages and penalties, injunctions prohibiting alleged marketing and sales to minors, disclosure of research, disgorgement of profits, funding of anti-smoking programs, additional disclosure of nicotine yields, and payment of attorney and expert witness fees.

Department of Justice Lawsuit

In September 1999, the United States government commenced litigation against Liggett and other cigarette manufacturers in the United States District Court for the District of Columbia. The action sought to recover an unspecified amount of health care costs paid and to be paid by the federal government for lung cancer, heart disease, emphysema and other smoking-related illnesses allegedly caused by the fraudulent and tortious conduct of defendants, to restrain defendants and co-conspirators from engaging in alleged fraud and other allegedly unlawful conduct in the future, and to compel defendants to disgorge the proceeds of their unlawful conduct. Claims were asserted under RICO.

In August 2006, the trial court entered a Final Judgment against each of the cigarette manufacturing defendants, except Liggett. In May 2009, the United States Court of Appeals for the District of Columbia affirmed most of the district court’s decision. The United States Supreme Court denied review. As a result, the cigarette manufacturing defendants, other than Liggett, are now subject to the trial court’s Final Judgment which ordered the following relief: (i) an injunction against “committing any act of racketeering” relating to the manufacturing, marketing, promotion, health consequences or sale of cigarettes in the United States; (ii) an injunction against participating directly or indirectly in the management or control of the Council for Tobacco Research, the Tobacco Institute, or the Center for Indoor Air Research, or any successor or affiliated entities of each; (iii) an injunction against “making, or causing to be made in any way, any material false, misleading, or deceptive statement or representation or engaging in any public relations or marketing endeavor that is disseminated to the United States’ public and that misrepresents or suppresses information concerning cigarettes”; (iv) an injunction against conveying any express or implied health message through use of descriptors on cigarette packaging or in cigarette advertising or promotional material, including “lights,” “ultra lights,” and “low tar,” which the court found could cause consumers to believe one cigarette brand is less hazardous than another brand; (v) the issuance of “corrective statements” in various media regarding the adverse health effects of smoking, the addictiveness of smoking and nicotine, the lack of any significant health benefit from smoking “low tar” or “lights” cigarettes, defendants’ manipulation of cigarette design to ensure optimum nicotine delivery and the adverse health effects of exposure to environmental tobacco smoke; (vi) the disclosure of defendants’ public document websites and the production of all documents produced to the government or produced in any future court or administrative action concerning smoking and health; (vii) the disclosure of disaggregated marketing data to the government in the same form and on the same schedules as defendants now follow in disclosing such data to the Federal Trade Commission for a period of ten years; (viii) certain restrictions on the sale or transfer by defendants of any cigarette brands, brand names, formulas or cigarette business within the United States; and (ix) payment of the government’s costs in bringing the action. In June 2014, the court approved a consent agreement between the defendants and the Department of Justice regarding the “corrective statements” to be issued by the defendants. In May 2015, the court of appeals issued an opinion on the legality of the "corrective statements," affirming them in part and reversing them in part. The implementation of the “corrective statements” is uncertain as proceedings are ongoing.

It is unclear what impact, if any, the Final Judgment will have on the cigarette industry as a whole. To the extent that the Final Judgment leads to a decline in industry-wide shipments of cigarettes in the United States or otherwise results in restrictions that adversely affect the industry, Liggett’s sales volume, operating income and cash flows could be materially adversely affected.

Upcoming Trials

As of December 31, 2016, there were six Engle progeny cases and one Individual Action scheduled for trial through December 31, 2017, where Liggett (and/or the Company) is a named defendant. Trial dates are, however, subject to change.

MSA and Other State Settlement Agreements

In March 1996, March 1997 and March 1998, Liggett entered into settlements of smoking-related litigation with 45 states and territories. The settlements released Liggett from all smoking-related claims made by those states and territories, including claims for health care cost reimbursement and claims concerning sales of cigarettes to minors.

In November 1998, Philip Morris, R.J. Reynolds and two other companies (the “Original Participating Manufacturers” or “OPMs”) and Liggett and Vector Tobacco (together with any other tobacco product manufacturer that becomes a signatory, the “Subsequent Participating Manufacturers” or “SPMs”) (the OPMs and SPMs are hereinafter referred to jointly as the “Participating Manufacturers”) entered into the Master Settlement Agreement (the “MSA”) with 46 states, the District of Columbia, Puerto Rico, Guam, the United States Virgin Islands, American Samoa and the Northern Mariana Islands (collectively, the “Settling States”) to settle the asserted and unasserted health care cost recovery and certain other claims of the Settling States. The MSA received final judicial approval in each Settling State.

As a result of the MSA, the Settling States released Liggett and Vector Tobacco from:


•	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.

The MSA restricts tobacco product advertising and marketing within the Settling States and otherwise restricts the activities of Participating Manufacturers. Among other things, the MSA prohibits the targeting of youth in the advertising, promotion or marketing of tobacco products; bans the use of cartoon characters in all tobacco advertising and promotion; limits each Participating Manufacturer to one tobacco brand name sponsorship during any 12-month period; bans all outdoor advertising, with certain limited exceptions; prohibits payments for tobacco product placement in various media; bans gift offers based on the purchase of tobacco products without sufficient proof that the intended recipient is an adult; prohibits Participating Manufacturers from licensing third parties to advertise tobacco brand names in any manner prohibited under the MSA; and prohibits Participating Manufacturers from using as a tobacco product brand name any nationally recognized non-tobacco brand or trade name or the names of sports teams, entertainment groups or individual celebrities.

The MSA also requires Participating Manufacturers to affirm corporate principles to comply with the MSA and to reduce underage use of tobacco products and imposes restrictions on lobbying activities conducted on behalf of Participating Manufacturers. In addition, the MSA provides for the appointment of an independent auditor to calculate and determine the amounts of payments owed pursuant to the MSA.

Under the payment provisions of the MSA, the Participating Manufacturers are required to make annual payments of $9,000,000 (subject to applicable adjustments, offsets and reductions including a "Non-Participating Manufacturers Adjustment" or "NPM Adjustment"). These annual payments are allocated based on unit volume of domestic cigarette shipments. The payment obligations under the MSA are the several, and not joint, obligation of each Participating Manufacturer and are not the responsibility of any parent or affiliate of a Participating Manufacturer.

Liggett has no payment obligations under the MSA except to the extent its market share exceeds a market share exemption of approximately 1.65% of total cigarettes sold in the United States. Vector Tobacco has no payment obligations under the MSA except to the extent its market share exceeds a market share exemption of approximately 0.28% of total cigarettes sold in the United States. Liggett and Vector Tobacco’s domestic shipments accounted for 3.3% of the total cigarettes sold in the United States in 2016. If Liggett’s or Vector Tobacco’s market share exceeds their respective market share exemption in a given year, then on April 15 of the following year, Liggett and/or Vector Tobacco, as the case may be, must pay on each excess unit an amount equal (on a per-unit basis) to that due from the OPMs for that year. On December 29, 2016, Liggett and Vector Tobacco pre-paid $102,000 of their approximate $118,000 2016 MSA obligation, the balance of which will be paid in April 2017, subject to any applicable disputes or adjustments.

Certain MSA Disputes

NPM Adjustment. Liggett and Vector Tobacco contend that they are entitled to an NPM Adjustment for each year from 2003 - 2015. The NPM Adjustment is a potential adjustment to annual MSA payments, available when the Participating Manufacturers suffer a market share loss to NPMs for a particular year and an economic consulting firm selected pursuant to the MSA determines that the MSA was a “significant factor contributing to” that loss. A Settling State that has “diligently enforced” its qualifying escrow statute in the year in question may be able to avoid its allocable share of the NPM Adjustment. For 2003 - 2015, Liggett and Vector Tobacco, as applicable, disputed that they owed the Settling States the NPM Adjustments as calculated by the independent auditor. As permitted by the MSA, Liggett and Vector Tobacco either paid subject to dispute, withheld payment or paid into a disputed payment account, the amounts associated with these NPM Adjustments.

The two requirements for application of the NPM Adjustment, a market share loss and a finding or agreement that the MSA was a significant factor in that loss, have been satisfied, and the Participating Manufacturers have engaged in disputes with certain of the Settling States over whether they diligently enforced their respective escrow statutes in each of the years from 2003 - 2015. After several years of litigation over whether the MSA’s arbitration clause required a multistate arbitration of the NPM Adjustment dispute, 48 of 49 state courts ultimately compelled the states to participate in a single, multistate arbitration of the 2003 NPM Adjustment. Notwithstanding, many states continued to refuse to arbitrate and agreed to do so only after the Participating Manufacturers agreed to a 20% reduction in their 2003 NPM Adjustment claims.

The arbitration for the 2003 NPM Adjustment began in June 2010. During the proceedings, the Participating Manufacturers decided not to contest the diligent enforcement of 16 states, with a combined allocable share of approximately 14%.

While the 2003 arbitration was underway, the Participating Manufacturers entered into a term sheet with 22 states settling the NPM Adjustment for 2003 - 2012 and agreed to terms to address the NPM Adjustment with respect to those states for future years. The parties have been working towards converting the binding term sheet into a final settlement agreement.

The Participating Manufacturers continued to contest the diligence of 15 states relating to the 2003 NPM Adjustment. In September 2013, the panel found that six of those states did not diligently enforce their MSA escrow statutes in 2003.

Two of the states found non-diligent, Kentucky and Indiana, agreed to settle the dispute and enter into the term sheet described above. The remaining four non-diligent states pursued motions in their respective state courts seeking to vacate or reduce the amount of the arbitration award. The Pennsylvania, Maryland and Missouri courts refused to vacate the award but reduced the recovery by approximately 50%. In October 2016, the United States Supreme Court denied the Participating Manufacturers' petitions for certiorari. In September 2013, the New Mexico trial court refused to vacate the award but reduced the recovery. The Participating Manufacturers appealed that decision to the New Mexico Court of Appeals.

In October 2015, substantially all of the Participating Manufacturers settled the NPM Adjustment dispute with the state of New York for 2004 - 2014 and agreed to a mechanism for potential future credits against the Participating Manufacturers' MSA payments for 2015 forward.

As a result of the settlements and arbitration award described above, Liggett and Vector Tobacco reduced cost of sales in the aggregate by $21,739 for years 2013 - 2016. Liggett and Vector Tobacco may be entitled to further adjustments for 2015 forward. The remaining NPM Adjustment accrual of approximately $20,000 at December 31, 2016 relates to the disputed amounts Liggett withheld from the non-settling states for 2004 - 2010, which may be subject to payment, with interest, if Liggett loses the disputes for those years. As of December 31, 2016, there remains approximately $28,600 in the disputed payments account relating to Liggett's 2011 - 2015 NPM Adjustment disputes with the non-settling states.

Disputes over the NPM Adjustments for 2004 - 2014 remain to be arbitrated with the states that have not joined the settlement. The dispute over the NPM Adjustment for 2015 remains to be arbitrated with all the states.

The arbitration for the 2004 NPM Adjustment dispute has commenced. Courts in two states, Pennsylvania and Maryland, rejected arguments that those states’ claims of diligent enforcement should be addressed by a separate state-specific panel and they are participating in the multistate arbitration. New Mexico's trial court recently granted a motion to compel it to participate as well, but, New Mexico appealed that order to its court of appeals. The Missouri court of appeals ruled that Missouri was entitled to a state-specific arbitration, and that issue is pending in the Missouri Supreme Court. Oral argument occurred in November 2016 and a decision is pending. Discovery is underway in the 2004 NPM Adjustment proceeding and evidentiary hearings are possible in 2017.

“Gross” v. “Net” Calculations. In October 2004, the independent auditor notified all Participating Manufacturers that their payment obligations under the MSA, dating from the agreement’s execution in late 1998, had been recalculated using “net” units, rather than “gross” units (which had been used since 1999). Liggett objected to this retroactive change and disputed the change in methodology.

In December 2012, the parties arbitrated the dispute. In February 2013, the arbitrators ruled that the independent auditor was precluded from recalculating Liggett’s grandfathered market share exemption. The panel further determined, in a subsequent order, that the independent auditor shall compute Liggett’s market share for all years after 2000 on a “net” basis, but adjust that computation to approximate “gross” market share by using actual returned product data for each year. In July 2015, the independent auditor issued calculations, purportedly based on the arbitrators' award, which indicated that Liggett owed approximately $16,000 for years 2001 - 2013. Liggett disputed these calculations. In June 2016, the independent auditor issued revised calculations indicating that Liggett owed approximately $8,100 for years 2001 - 2013. In September 2016, Liggett paid the $8,100 and reduced cost of sales by $370, but, continued to dispute certain aspects of the independent auditor's revised calculations.

Other State Settlements. The MSA replaced Liggett’s prior settlements with all states and territories except for Florida, Mississippi, Texas and Minnesota. Each of these four states, prior to the effective date of the MSA, negotiated and executed settlement agreements with each of the other major tobacco companies, separate from those settlements reached previously with Liggett. Except as described below, Liggett’s agreements with these states remain in full force and effect. These states’ settlement agreements with Liggett contained most favored nation provisions which could reduce Liggett’s payment obligations based on subsequent settlements or resolutions by those states with certain other tobacco companies. Beginning in 1999, Liggett determined that, based on settlements or resolutions with United States Tobacco Company, Liggett’s payment obligations to those four states were eliminated. With respect to all non-economic obligations under the previous settlements, Liggett believes it is entitled to the most favorable provisions as between the MSA and each state’s respective settlement with the other major tobacco companies. Therefore, Liggett’s non-economic obligations to all states and territories are now defined by the MSA.

In 2003, as a result of a dispute with Minnesota regarding its settlement agreement, Liggett agreed to pay $100 a year in any year cigarettes manufactured by Liggett are sold in that state. Further, the Attorneys General for Florida, Mississippi and Texas advised Liggett that they believed Liggett had failed to make payments under the respective settlement agreements with those states. In 2010, Liggett settled with Florida and agreed to pay $1,200 and to make further annual payments of $250 for a period of 21 years, starting in March 2011, with the payments from year 12 forward being subject to an inflation adjustment. These payments are in lieu of any other payments allegedly due to Florida.

On January 12, 2016, the Attorney General for Mississippi filed a motion in state court in Jackson County, Mississippi (Chancery Division) to enforce the March 1996 settlement agreement alleging that Liggett owes Mississippi at least $27,000 in damages (including interest), and $20,000 in punitive damages and attorneys' fees. Discovery is concluded and briefing is underway. A hearing is scheduled on March 24, 2017.

Liggett may be required to make additional payments to Texas and Mississippi which could adversely affect the Company’s consolidated financial position, results of operations and cash flows.

Cautionary Statement

Management is not able to reasonably predict the outcome of the litigation pending or threatened against Liggett or the Company. Litigation is subject to many uncertainties. Liggett has been found liable in multiple Engle progeny cases and Individual Actions, several of which were affirmed on appeal and satisfied by Liggett. It is possible that other cases could be decided unfavorably against Liggett and that Liggett will be unsuccessful on appeal. Liggett may attempt to settle particular cases if it believes it is in its best interest to do so.

Management cannot predict the cash requirements related to any future defense costs, settlements or judgments, including cash required to bond any appeals, and there is a risk that those requirements will not be able to be met. An unfavorable outcome of a pending smoking-related case could encourage the commencement of additional litigation. Except as discussed in this Note 15, management is unable to estimate the loss or range of loss that could result from an unfavorable outcome of the cases pending against Liggett or the costs of defending such cases and as a result has not provided any amounts in its consolidated financial statements for unfavorable outcomes.

The tobacco industry is subject to a wide range of laws and regulations regarding the marketing, sale, taxation and use of tobacco products imposed by local, state and federal governments. There have been a number of restrictive regulatory actions, adverse legislative and political decisions and other unfavorable developments concerning cigarette smoking and the tobacco industry. These developments may negatively affect the perception of potential triers of fact with respect to the tobacco industry, possibly to the detriment of certain pending litigation, and may prompt the commencement of additional litigation or legislation.

It is possible that the Company’s consolidated financial position, results of operations and cash flows could be materially adversely affected by an unfavorable outcome in any of the smoking-related litigation.

The activity in the Company’s accruals for the MSA and tobacco litigation for the three years ended December 31, 2016 were as follows:



	Current Liabilities									Non-Current Liabilities
	Payments due under Master Settlement Agreement			Litigation Accruals			Total			Payments due under Master Settlement Agreement			Litigation Accruals			Total

Balance at January 1, 2014	$	25,348		$	59,310		$	84,658		$	27,571		$	27,058		$	54,629
Expenses	118,069			2,849			120,918			—			—			—
NPM Settlement adjustment	—			—			—			(1,419		)	—			(1,419		)
Change in MSA obligations capitalized as inventory	(1,095		)	—			(1,095		)	—			—			—
Payments	(116,343		)	(62,878		)	(179,221		)	—			—			—
Reclassification from non-current liabilities	343			3,575			3,918			(343		)	(3,575		)	(3,918		)
Interest on withholding	—			293			293			—			2,217			2,217
Balance as of December 31, 2014	26,322			3,149			29,471			25,809			25,700			51,509
Expenses	118,284			20,644			138,928			—			(195		)	(195		)
NPM Settlement adjustment	1,351			—			1,351			(5,715		)	—			(5,715		)
Change in MSA obligations capitalized as inventory	1,426			—			1,426						—			—
Payments	(118,142		)	(5,869		)	(124,011		)	—			—			—
Reclassification from non-current liabilities	—			3,305			3,305			—			(3,305		)	(3,305		)
Interest on withholding	—			1,675			1,675			—			2,518			2,518
Balance as of December 31, 2015	29,241			22,904			52,145			20,094			24,718			44,812
Expenses	110,486			16,679			127,165			—			3,650			3,650
Change in MSA obligations capitalized as inventory	1,568			—			1,568			—			—			—
Payments	(122,977		)	(39,682		)	(162,659		)	—			—			—
Reclassification from non-current liabilities	(2,163		)	3,252			1,089			2,163			(3,252		)	(1,089		)
Interest on withholding	37			506			543			—			2,397			2,397
Balance as of December 31, 2016	$	16,192		$	3,659		$	19,851		$	22,257		$	27,513		$	49,770

Other Matters:

Liggett’s and Vector Tobacco’s management are unaware of any material environmental conditions affecting their existing facilities. Liggett’s and Vector Tobacco’s management believe that current operations are conducted in material compliance with all environmental laws and regulations and other laws and regulations governing cigarette manufacturers. Compliance with federal, state and local provisions regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, has not had a material affect on the capital expenditures, results of operations or competitive position of Liggett or Vector Tobacco.

Liggett Vector Brands entered into an agreement with a subsidiary of the Convenience Distribution Association to support a program to permit certain tobacco distributors to secure, on reasonable terms, tax stamp bonds required by state and local governments for the distribution of cigarettes. Under the agreement, Liggett Vector Brands has agreed to pay a portion of losses incurred by the surety under the bond program, with a maximum loss exposure of $500. The Company believes the fair value of Liggett Vector Brands’ obligation under the agreement was immaterial at December 31, 2016.

In addition to the foregoing, Douglas Elliman Realty, LLC and its subsidiaries are subject to numerous proceedings, lawsuits and claims in connection with their ordinary business activities. Many of these matters are covered by insurance or, in some cases, the company is indemnified by third parties.

Liggett was contacted in October 2015, by one of its software vendors, who suggested that Liggett needed to purchase additional software licenses from it. Liggett believes that its use of the vendor's software is in compliance with the licenses previously purchased by Liggett. In January 2016, the software vendor requested to audit Liggett’s use of the relevant software. Liggett has provided details of its use of the software and is continuing to cooperate with requests for information.

Management is of the opinion that the liabilities, if any, resulting from other proceedings, lawsuits and claims pending against the Company and its consolidated subsidiaries, unrelated to tobacco product liability, should not materially affect the Company’s consolidated financial position, results of operations or cash flows.

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2016

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

SUPPLEMENTAL CASH FLOW INFORMATION



	Year Ended December 31,
	2016		2015		2014
Cash paid during the period for:
Interest	$	108,422	$	96,958	$	98,754
Income taxes	46,811		52,040		16,610
Non-cash investing and financing activities:
Issuance of stock dividend	609		584		520
Non-controlling interest	—		—		2,733
Debt retired in conversion to stock	—		25,000		132,530
Embedded derivative, net retired in conversion to stock	—		889		6,680

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Ladenburg Thalmann Financial Services Inc. As of December 31, 2016, the Company owned 15,191,200 common shares of Ladenburg Thalmann Financial Services Inc. (“LTS”), a publicly-traded, diversified financial-services company engaged in independent brokerage and advisory services, investment banking, equity research, institutional sales and trading, asset management services, wholesale life insurance brokerage and trust services. The Company, through its various investments in LTS, beneficially owned approximately 8.28% and accounts for its investment in LTS under the equity method of accounting. In September 2006, the Company entered into an agreement with LTS pursuant to which the Company agreed to make available to LTS the services of the Company’s Executive Vice President (the “EVP”) to serve as the President and Chief Executive Officer of LTS and to provide certain other financial, accounting and tax services, including assistance with complying with Section 404 of the Sarbanes-Oxley Act of 2002 and assistance in the preparation of income tax returns. LTS paid the Company $850 for each of 2016, 2015 and 2014 under the agreement and pays the Company at a rate of $850 per year in 2017. These amounts are recorded as equity income. LTS paid compensation to the President and Chief Executive Officer of the Company, who serves as Vice Chairman of LTS, of $1,250, $1,300 and $1,375 for 2016, 2015 and 2014, respectively, and director fees of $36, $38 and $39 for 2016, 2015 and 2014, respectively. LTS paid compensation to the Company EVP, who serves as President and CEO of LTS, of $1,450, $1,450 and $1,375 for 2016, 2015 and 2014, respectively. On November 4, 2011, Vector was part of a consortium, which included Dr. Phillip Frost, who is a beneficial owner of approximately 15.3% of the Company’s common stock as of February 21, 2017 and the EVP that agreed to provide a five-year loan to LTS. Vector’s portion of the loan was $15,000. Interest on the loan, which was due on November 4, 2016, was payable quarterly at 11% per annum and commenced on December 31, 2011. The Company recorded equity in earnings of $205, $280 and $574 in 2016, 2015 and 2014, respectively, related to the interest payments. On October 26, 2016, the Company surrendered the remaining principal amount of $1,680 of its note to pay for the exercise price of 1,000,000 LTS Warrants that were exercised in full on the same date. The LTS warrants had been received in connection with the funding of the five-year loan to LTS. The Company owns 240,000 shares of LTS’s 8% Series A Cumulative Redeemable Preferred Stock (Liquidation Preference $25.00 Per Share) and recorded dividend income from the investment of $480 in each of 2016, 2015 and 2014. Castle Brands Inc. As of December 31, 2016, the Company owned 12,671,159 common shares of Castle (NYSE MKT: ROX), a publicly-traded developer and importer of premium branded spirits. The Company accounts for its investment in Castle under the equity method. In October 2008, the Company entered into an agreement with Castle where the Company agreed to make available to Castle the services of the EVP to serve as the President and Chief Executive Officer of Castle and to provide other financial, accounting and tax services. The Company recognized management fees at a rate of $100 in each of 2016, 2015 and 2014, under the agreement and Castle has agreed to pay it at a rate of $100 per year in 2017. In 2013, the Company purchased in a private placement $200 of Castle’s convertible debt, which bears interest at 5% per annum, is convertible into 222,222 shares of Castle common stock and is due on December 15, 2018. The Castle convertible debt was included in the ending carrying value of the Company's equity method investment in Castle. Morgans Hotel Group Co. The Company's President and Chief Executive Officer served as the Chairman of the Board of Directors of Morgans Hotel Group Co. (NASDAQ: MHGC) in 2015 and 2016. As of November 30, 2016, the Company beneficially owned approximately 2,459,788 (7.03%) and accounted for its investment in MHGC as investment securities available for sale. On December 1, 2016, MHGC merged with another company and, as a result, the common shares of MHGC ceased to be outstanding and were converted into the right to receive $2.25 in cash. The Company received $5,535 for its investment in MHGC and recorded a gain of $2,140, after recognizing an impairment charge of $4,772 in the first quarter of 2016. Insurance. The Company’s Chief Executive Officer, a firm in which he is a shareholder, and affiliates of that firm received insurance commissions aggregating approximately $247, $217 and $261 in 2016, 2015 and 2014, respectively, on various insurance policies issued for the Company and its subsidiaries. Other. In addition to its investment in LTS and Castle, the Company has made investments in entities where Dr. Frost has a relationship. These include the following: (i) three investments in 2006, 2008, 2009, 2011, and 2015 totaling approximately $12,788 in common stock of OPKO Inc. (NYSE MKT: OPK) and its predecessor eXegenics Inc., and in January 2013, the Company purchased $5,000 of Opko’s 3.00% convertible senior notes due 2033 which were converted into 726,036 shares of common stock in May 2015 ; (ii) a $500 investment in 2008 in BioCardia, Inc (formerly known as Tiger X Medical Inc. and Cardo Medical Inc); and (iii) a $250 investment in 2008 in Cocrystal Pharma, Inc. (f/ka/ Cocrystal Discovery Inc.). Dr. Frost is a director, executive officer and/or more than 10% shareholder in these entities as well as LTS. Additional investments in entities where Dr. Frost has a relationship may be made in the future. In May 2009, the Company issued in a private placement the 6.75% Note in the principal amount of $50,000. The purchase price was paid in cash ($38,225) and by tendering $11,005 principal amount of the 5% Notes, valued at 107% of principal amount. The purchaser of the 6.75% Note was an entity affiliated with Dr. Frost. In March 2014, the holder of the 6.75% Note elected to convert $25,000 of the principal balance of the Note into 2,455,877 shares of the Company's common stock. On November 14, 2014, the Note was amended to extend the stated maturity date of the Note from November 15, 2014 to February 15, 2015. On February 3, 2015, the remaining $25,000 of principal of the Note was converted into 2,455,876 shares of the Company's common stock. Vector made cash interest payments of $1,094 associated with the Note in 2015. In September 2012, the Company entered into an office lease (the “Lease”) with Frost Real Estate Holdings, LLC (“FREH”), an entity affiliated with Dr. Frost. The Lease is for 12,390 square feet of space in an office building in Miami, Florida. The initial term of the Lease is five years, subject to two optional five-year term extensions. Payments under the lease commenced in May 2013. The Lease provides for payments of $31 per month in the first year increasing to $35 per month in the fifth year, plus applicable sales tax. The rent is inclusive of operating expenses, property taxes and parking. A $220 tenant improvement allowance will be credited to the rent pro-rata over the initial five-year term. In connection with the execution of the Lease, the Company received the advice and opinion of a commercial real estate firm that the Lease terms were fair and that the Company received terms favorable in the market. The Company recorded rental expense of $380 for each of the three years ended December 31, 2016, 2015 and 2014, respectively, associated with the lease. A son of the Company's President and Chief Executive Officer is an associate broker with Douglas Elliman Realty, LLC and he received commissions and other payments of $640 and $453 in accordance with brokerage activities in 2016 and 2015, respectively. The Company's President and Chief Executive Officer has reserved a unit in a real estate venture for a purchase price of $5,200 in 2015 and he may reserve or purchase units in other real estate ventures in the future.

Investments and Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Investments and Fair Value Measurements

INVESTMENTS AND FAIR VALUE MEASUREMENTS

The Company’s financial assets and liabilities subject to fair value measurements were as follows:



	Fair Value Measurements as of December 31, 2016
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Assets:
Money market funds ⁽¹⁾	$	248,552	$	248,552	$	—	$	—

Commercial paper⁽¹⁾	41,247		—		41,247		—

Certificates of deposit ⁽²⁾	2,982		—		2,982		—

Bonds ⁽²⁾	4,240		4,240		—		—

Investment securities available for sale
Equity securities	50,843		50,843		—		—
Mutual funds invested in fixed income securities	20,582		20,582		—		—
Fixed income securities
U.S. government securities	30,642		—		30,642		—
Corporate securities	36,687		—		36,687		—
U.S. government and federal agency	6,500		—		6,500		—
Commercial mortgage-backed securities	1,398		—		1,398		—
Commercial paper	8,980		—		8,980		—
Index-linked U.S. bonds	770		—		770		—
Foreign fixed-income securities	501		—		501		—
Total fixed income securities	85,478		—		85,478		—

Total investment securities available for sale	156,903		71,425		85,478		—

Total	$	453,924	$	324,217	$	129,707	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	112,332	$	—	$	—	$	112,332


Nonrecurring fair value measurements
Long-term investments ⁽³⁾	$	6,396					$	6,396	$	(1,203	)
	$	6,396					$	6,396	$	(1,203	)


(1)	Amounts included in cash and cash equivalents on the condensed consolidated balance sheet.


(2)	Amounts included in current restricted assets and restricted assets on the condensed consolidated balance sheet.


(3)	Long-term investments with a carrying amount of $7,599 were written down to their fair value of $6,396, resulting in an impairment charge of $1,203, which was included in earnings.



	Fair Value Measurements as of December 31, 2015
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds⁽¹⁾	$	93,915	$	93,915	$	—	$	—

Certificates of deposit ⁽²⁾	3,469		—		3,469		—

Bonds ⁽²⁾	12,767		12,767		—		—

Investment securities available for sale
Equity securities	67,273		67,273		—		—
Mutual funds invested in fixed income securities	20,111		20,111		—		—
Fixed income securities
U.S. government securities	28,132		—		28,132		—
Corporate securities	41,561		—		41,561		—
U.S. government and agency	5,790		—		5,790		—
Commercial mortgage-backed securities	8,728		—		8,728		—
U.S. asset-backed securities	8,276		—		8,276		—
Index-linked U.S. bonds	2,105		—		2,105		—
Total fixed income securities	94,592		—		94,592		—

Total investment securities available for sale	181,976		87,384		94,592		—

Total	$	292,127	$	194,066	$	98,061	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	144,042	$	—	$	—	$	144,042


Nonrecurring fair value measurements
Long-term investments ⁽³⁾	$	11,189					$	11,189	$	(811	)
Real estate held for sale ⁽⁴⁾	3,780						3,780		(230		)
	$	14,969					$	14,969	$	(1,041	)


(1)	Amounts included in cash and cash equivalents on the condensed consolidated balance sheet.


(2)	Amounts included in current restricted assets and restricted assets on the condensed consolidated balance sheet.


(3)	Long-term investments with a carrying amount of $12,000 were written down to their fair value of $11,189, resulting in an impairment charge of $811, which was included in earnings.


(4)	Real estate with a carrying value of $4,010 was written down to its fair value of $3,780, resulting in an impairment charge of $230, which was included in earnings.

The fair value of the Level 2 certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is the rate offered by the financial institution. The fair value of investment securities available for sale included in Level 1 is based on quoted market prices from various stock exchanges. The Level 2 investment securities available for sale are based on quoted market prices of securities that are thinly traded, quoted prices for identical or similar assets n markets that are not active or inputs other than quoted prices such as interest rates and yield curves.

The fair value of derivatives embedded within convertible debt was derived using a valuation model. These derivatives have been classified as Level 3. The valuation model assumes future dividend payments by the Company and utilizes interest rates and credit spreads based upon the implied credit spread of the 5.50% Convertible Notes due 2020 to determine the fair value of the derivatives embedded within the convertible debt. The changes in fair value of derivatives embedded within convertible debt are presented on the consolidated statements of operations.

The value of the embedded derivatives is contingent on changes in implied interest rates of the convertible debt, the Company's stock price, stock volatility as well as projections of future cash and stock dividends over the term of the debt. The interest rate component of the value of the embedded derivative is computed by calculating an equivalent non-convertible, unsecured and subordinated borrowing cost. This rate is determined by calculating the implied rate on the Company's 2020 Convertible Notes when removing the embedded option value within the convertible security. This rate is based upon market observable inputs and influenced by the Company's stock price, convertible bond trading price, risk-free interest rates and stock volatility.

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2016:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2016		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	112,332	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	22.74
				Convertible trading price (as a percentage of par value)	114.69		%
				Volatility	19.47		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	4.5% - 5.5% (5.0%)

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2015:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2015		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	144,042	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	23.59
				Convertible trading price (of par)	114.3		%
				Volatility	18.30		%
				Implied credit spread	5.0% - 5.5% (5.25%)

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record assets and liabilities at fair value on a nonrecurring basis. Generally, assets and liabilities are recorded at fair value on a nonrecurring basis as a result of impairment charges. The Company had no nonrecurring nonfinancial assets subject to fair value measurements as of December 31, 2016 and 2015, respectively.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company’s business segments were Tobacco, E-Cigarettes and Real Estate. The Tobacco segment consists of the manufacture and sale of conventional cigarettes. The E-Cigarettes segment includes the operations of the Company's e-cigarette business. The Real Estate segment includes the Company’s investment in New Valley, which includes Douglas Elliman, Escena, our previous investment in Indian Creek, Sagaponack and investments in real estate ventures. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

Financial information for the Company’s operations before taxes and non-controlling interests for the years ended December 31, 2016, 2015 and 2014 follows:



							Real			Corporate
	Tobacco			E-Cigarettes			Estate			and Other					Total

2016
Revenues	$	1,011,620		$	(776	)	$	680,105		$	—				$	1,690,949
Operating income (loss)	238,293		(1)	(1,403		)	23,001			(26,894		)			232,997
Equity in earnings from real estate ventures	—			—			5,200			—					5,200
Identifiable assets	328,349			68			573,350		(4)	502,268			(5)	(6)	1,404,035
Depreciation and amortization	10,224			—			10,485			1,650					22,359
Capital expenditures	6,445			—			20,160			86					26,691

2015
Revenues	$	1,017,761		$	(1,970	)	$	641,406		$	—				$	1,657,197
Operating income (loss)	209,393		(2)	(13,037		)	24,087			(20,523		)			199,920
Equity in earnings from real estate ventures	—			—			2,001			—					2,001
Identifiable assets	344,033			985			585,098		(4)	350,499			(5)	(6)	1,280,615
Depreciation and amortization	11,323			—			12,589			1,742					25,654
Capital expenditures	3,730			—			7,247			—					10,977

2014
Revenues	$	1,021,259		$	8,589		$	561,467		$	—				$	1,591,315
Operating income (loss)	199,119		(3)	(13,124		)	42,354			(15,911		)			212,438
Equity in earnings from real estate ventures	—			—			4,103			—					4,103
Identifiable assets	325,870			8,139			498,058		(4)	556,975			(5)	(6)	1,389,042
Depreciation and amortization	10,885			—			12,204			1,410					24,499
Capital expenditures	9,256			—			6,923			7,225					23,404

_____________________________


⁽¹⁾	Operating income includes $247 of expense from MSA Settlement, $20,000 of litigation judgment expense, and $41 of restructuring expense.


⁽²⁾	Operating income includes $4,364 of income from MSA Settlement, $20,072 of litigation settlement and judgment expense, $7,257 of restructuring expense, and $1,607 of pension settlement expense.


⁽³⁾	Operating income includes $1,419 of income from NPM Settlement and $2,475 of litigation settlement charges and judgment expense.


⁽⁴⁾	Includes real estate investments accounted for under the equity method of accounting of $221,258, $217,168 and $163,460 as of December 31, 2016, 2015 and 2014, respectively.

⁽⁵⁾

Corporate and Other identifiable assets primarily includes cash of $280,691, investment securities of $156,903, and long-term investments of $34,975 as of December 31, 2016. Corporate and other identifiable assets primarily includes cash of $112,130, investment securities of $181,976, and long-term investments of $62,225 as of December 31, 2015. Corporate and other identifiable assets primarily includes cash of $213,227, investment securities of $269,100, and long-term investments of $52,025 as of December 31, 2014.


⁽⁶⁾	Includes long-term investments accounted for under the equity method of accounting of $17,721, $21,495 and $20,484 as of December 31, 2016, 2015 and 2014, respectively.

Quarterly Financial Information Disclosure [Abstract]

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599

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-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Quarterly Financial Results (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Results (Unaudited)

QUARTERLY FINANCIAL RESULTS (UNAUDITED)

Unaudited quarterly data for the years ended December 31, 2016 and 2015 are as follows:



	December 31,		September 30,		June 30,		March 31,
	2016		2016		2016		2016
Revenues	$	412,772	$	459,104	$	438,273	$	380,800
Gross Profit	138,923		155,662		154,642		144,378
Operating income	30,754		69,364		70,720		62,159
Net income applicable to common shares attributed to Vector Group Ltd.	$	4,599	$	23,175	$	24,015	$	19,338
Per basic common share (1):
Net income applicable to common shares attributed to Vector Group Ltd.	$	0.04	$	0.18	$	0.19	$	0.15
Per diluted common share (1):
Net income applicable to common shares attributed to Vector Group Ltd.	$	0.04	$	0.18	$	0.19	$	0.15

_____________________________


(1)	Per share computations include the impact of a 5% stock dividend paid on September 29, 2016. Quarterly basic and diluted net income per common share were computed independently for each quarter and do not necessarily total to the year to date basic and diluted net income per common share.



	December 31,		September 30,		June 30,		March 31,
	2015		2015		2015		2015
Revenues	$	430,330	$	449,934	$	416,173	$	360,760
Gross Profit	137,742		154,017		136,969		118,742
Operating income	31,032		69,367		55,803		43,718
Net income applicable to common shares attributed to Vector Group Ltd.	$	7,904	$	12,466	$	17,607	$	21,221
Per basic common share (1):
Net income applicable to common shares attributed to Vector Group Ltd.	$	0.06	$	0.10	$	0.14	$	0.17
Per diluted common share (1):
Net income applicable to common shares attributed to Vector Group Ltd.	$	0.06	$	0.10	$	0.14	$	0.17

_____________________________


(1)	Per share computations include the impact of a 5% stock dividend paid on September 29, 2015. Quarterly basic and diluted net income per common share were computed independently for each quarter and do not necessarily total to the year to date basic and diluted net income per common share.

Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Information

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The accompanying condensed consolidating financial information has been prepared and presented pursuant to Securities and Exchange Commission (“SEC”) Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Affiliates Whose Securities Collateralize an Issue Registered or Being Registered.” Each of the subsidiary guarantors is 100% owned, directly or indirectly, by the Company, and all guarantees are full and unconditional and joint and several.

The Company’s investments in its consolidated subsidiaries are presented under the equity method of accounting.

The Company had on December 31, 2016, outstanding $835,000 principal amount of its 7.75% Senior Secured Notes due 2021 that were guaranteed subject to certain customary automatic release provisions on a joint and several basis by all of the 100% owned domestic subsidiaries of the Company that are engaged in the conduct of its cigarette businesses. (See Note 9.) The notes are not guaranteed by any of the Company’s subsidiaries engaged in the real estate businesses conducted through its subsidiary New Valley.

Presented herein are Condensed Consolidating Balance Sheets as of December 31, 2016 and 2015 and the related Condensed Consolidating Statements of Operations and Cash Flows for the years ended December 31, 2016, 2015 and 2014 of Vector Group. (Parent/Issuer), the guarantor subsidiaries (Subsidiary Guarantors) and the subsidiaries that are not guarantors (Subsidiary Non-Guarantors).

Subsequent to year end, the Company issued $850,000 of its 6.125% Senior Secured Notes due 2025 in a private offering to qualified institutional investors in accordance with Rule 144A of the Securities Act of 1933 on January 27, 2017. The Company is using the net proceeds of the issuance to redeem $835,000 of its 7.75% Senior Secured Notes.

The Company and the guarantors have filed a shelf registration statement for the offering of debt securities on a delayed or continuous basis and the Company is filing this condensed consolidating financial information in connection therewith.

CONDENSED CONSOLIDATING BALANCE SHEETS



				December 31, 2016
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	279,815		$	14,798	$	98,917	$	—		$	393,530
Investment securities available for sale	121,016			35,887		—		—			156,903
Accounts receivable - trade, net	—			11,775		7,026		—			18,801
Intercompany receivables	22,789			—		—		(22,789		)	—
Inventories	—			89,834		—		—			89,834
Income taxes receivable, net	18,387			—		—		(2,277		)	16,110
Restricted assets	—			6,416		914		—			7,330
Other current assets	517			4,428		18,010		—			22,955
Total current assets	442,524			163,138		124,867		(25,066		)	705,463
Property, plant and equipment, net	1,134			48,314		31,000		—			80,448
Investments in real estate, net	—			—		23,640		—			23,640
Long-term investments	52,308			388		501		—			53,197
Investments in real estate ventures	—			—		221,258		—			221,258
Investments in consolidated subsidiaries	501,659			—		—		(501,659		)	—
Restricted assets	1,728			2,258		—		—			3,986
Goodwill and other intangible assets, net	—			107,511		154,407		—			261,918
Prepaid pension costs	—			22,273		—		—			22,273
Other assets	7,534			12,118		12,200		—			31,852
Total assets	$	1,006,887		$	356,000	$	567,873	$	(526,725	)	$	1,404,035
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—		$	39,333	$	175	$	—		$	39,508
Current portion of employee benefits	—			937		—		—			937
Intercompany payables	—			24		22,765		(22,789		)	—
Income taxes payable, net	—			1,089		1,188		(2,277		)	—
Litigation accruals and current payments due under the Master Settlement Agreement	—			19,851		—		—			19,851
Other current liabilities	47,968			49,492		38,392		—			135,852
Total current liabilities	47,968			110,726		62,520		(25,066		)	196,148
Notes payable, long-term debt and other obligations, less current portion	1,127,180			5,372		391		—			1,132,943
Fair value of derivatives embedded within convertible debt	112,332			—		—		—			112,332
Non-current employee benefits	42,818			16,140		—		—			58,958
Deferred income taxes, net	7,420			40,136		45,529		—			93,085
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	1,169			49,861		12,811		—			63,841
Total liabilities	1,338,887			222,235		121,251		(25,066		)	1,657,307
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(332,000		)	133,765		367,894		(501,659		)	(332,000		)
Non-controlling interest	—			—		78,728		—			78,728
Total stockholders' (deficiency) equity	(332,000		)	133,765		446,622		(501,659		)	(253,272		)
Total liabilities and stockholders' deficiency	$	1,006,887		$	356,000	$	567,873	$	(526,725	)	$	1,404,035

CONDENSED CONSOLIDATING BALANCE SHEETS



				December 31, 2015
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	111,470		$	12,375	$	116,523	$	—		$	240,368
Investment securities available for sale	131,810			50,166		—		—			181,976
Accounts receivable - trade, net	—			15,913		7,976		—			23,889
Intercompany receivables	11,293			—		—		(11,293		)	—
Inventories	—			86,516		—		—			86,516
Income taxes receivable, net	8,213			—		—		(5,372		)	2,841
Restricted assets	—			7,781		1,414		—			9,195
Other current assets	575			3,747		34,632		—			38,954
Total current assets	263,361			176,498		160,545		(16,665		)	583,739
Property, plant and equipment, net	1,711			54,097		19,824		—			75,632
Investments in real estate, net	—			—		23,318		—			23,318
Long-term investments	61,747			478		501		—			62,726
Investments in real estate ventures	—			—		217,168		—			217,168
Investments in consolidated subsidiaries	532,501			—		—		(532,501		)	—
Restricted assets	1,713			10,590		—		—			12,303
Goodwill and other intangible assets,net	—			107,511		156,448		—			263,959
Prepaid pension costs	—			20,650		—		—			20,650
Other assets	7,582			11,769		1,769		—			21,120
Total assets	$	868,615		$	381,593	$	579,573	$	(549,166	)	$	1,280,615
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—		$	8,733	$	186	$	—		$	8,919
Current portion of employee benefits	—			915		—		—			915
Intercompany payables	—			586		10,707		(11,293		)	—
Income taxes payable, net	—			5,464		4		(5,372		)	96
Litigation accruals and current payments due under the Master Settlement Agreement	—			52,145		—		—			52,145
Other current liabilities	38,140			74,083		41,994		—			154,217
Total current liabilities	38,140			141,926		52,891		(16,665		)	216,292
Notes payable, long-term debt and other obligations, less current portion	848,368			7,519		221		—			856,108
Fair value of derivatives embedded within convertible debt	144,042			—		—		—			144,042
Non-current employee benefits	39,244			15,811		—		—			55,055
Deferred income taxes, net	2,675			33,791		42,963		—			79,429
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	2,193			44,982		4,675		—			51,850
Total liabilities	1,074,662			244,029		100,750		(16,665		)	1,402,776
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(206,047		)	137,564		394,937		(532,501		)	(206,047		)
Non-controlling interest	—			—		83,886		—			83,886
Total stockholders' (deficiency) equity	(206,047		)	137,564		478,823		(532,501		)	(122,161		)
Total liabilities and stockholders' deficiency	$	868,615		$	381,593	$	579,573	$	(549,166	)	$	1,280,615

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Year Ended December 31, 2016
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	1,011,322		$	680,105		$	(478	)	$	1,690,949
Expenses:
Cost of sales	—			672,515			424,829			—			1,097,344
Operating, selling, administrative and general expenses	36,242			72,359			232,444			(478		)	340,567
Litigation settlement and judgment expense	—			20,000			—			—			20,000
Management fee expense	—			10,649			—			(10,649		)	—
Restructuring charges	—			41			—			—			41
Operating (loss) income	(36,242		)	235,758			22,832			10,649			232,997
Other income (expenses):
Interest expense	(139,524		)	(3,438		)	(20		)	—			(142,982		)
Change in fair value of derivatives embedded within convertible debt	31,710			—			—			—			31,710
Equity in earnings from real estate ventures	—			—			5,200			—			5,200
Equity in losses from investments	(2,664		)	(90		)	—			—			(2,754		)
Gain on sale of investment securities available for sale	376			2,531			—			—			2,907
Impairment of investment securities available for sale	(609		)	(4,772		)	—			—			(5,381		)
Equity in earnings in consolidated subsidiaries	161,471			—			—			(161,471		)	—
Management fee income	10,649			—			—			(10,649		)	—
Other, net	2,780			1,013			939			—			4,732
Income before provision for income taxes	27,947			231,002			28,951			(161,471		)	126,429
Income tax benefit (expense)	43,180			(83,008		)	(9,335		)	—			(49,163		)
Net income	71,127			147,994			19,616			(161,471		)	77,266
Net income attributed to non-controlling interest	—			—			(6,139		)	—			(6,139		)
Net income attributed to Vector Group Ltd.	$	71,127		$	147,994		$	13,477		$	(161,471	)	$	71,127
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(6,139	)	$	—		$	(6,139	)
Comprehensive income attributed to Vector Group Ltd.	$	68,195		$	146,841		$	13,477		$	(160,318	)	$	68,195

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Year Ended December 31, 2015
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	1,016,279		$	641,406		$	(488	)	$	1,657,197
Expenses:
Cost of sales	—			699,440			410,287			—			1,109,727
Operating, selling, administrative and general expenses	29,237			84,437			207,035			(488		)	320,221
Litigation settlement and judgment expense	—			20,072			—			—			20,072
Management fee expense	—			10,250			—			(10,250		)	—
Restructuring charges	—			7,257			—			—			7,257
Operating (loss) income	(29,237		)	194,823			24,084			10,250			199,920
Other income (expenses):
Interest expense	(115,731		)	(4,953		)	(7		)	—			(120,691		)
Change in fair value of derivatives embedded within convertible debt	24,455			—			—			—			24,455
Equity in earnings from real estate ventures	—			—			2,001			—			2,001
Equity in losses from investments	(2,640		)	(41		)	—			—			(2,681		)
(Loss) gain on sale of investment securities available for sale	(2,037		)	13,175			—			—			11,138
Impairment of investment securities available for sale	(4,859		)	(7,987		)	—			—			(12,846		)
Equity in earnings in consolidated subsidiaries	125,042			—			—			(125,042		)	—
Management fee income	10,250			—			—			(10,250		)	—
Other, net	4,016			639			1,754			—			6,409
Income before provision for income taxes	9,259			195,656			27,832			(125,042		)	107,705
Income tax benefit (expense)	49,939			(82,282		)	(8,890		)	—			(41,233		)
Net income	59,198			113,374			18,942			(125,042		)	66,472
Net income attributed to non-controlling interest	—			—			(7,274		)	—			(7,274		)
Net income attributed to Vector Group Ltd.	$	59,198		$	113,374		$	11,668		$	(125,042	)	$	59,198
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(7,274	)	$	—		$	(7,274	)
Comprehensive income attributed to Vector Group Ltd.	$	52,228		$	105,456		$	11,668		$	(117,124	)	$	52,228

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Year Ended December 31, 2014
	Parent/ Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated Vector Group Ltd.
Revenues	$	—		$	1,030,157		$	561,467		$	(309	)	$	1,591,315
Expenses:
Cost of sales	—			743,032			354,028			—			1,097,060
Operating, selling, administrative and general expenses	24,262			90,208			165,181			(309		)	279,342
Litigation settlement and judgment expense	—			2,475			—			—			2,475
Management fee expense	—			9,870			—			(9,870		)	—
Operating (loss) income	(24,262		)	184,572			42,258			9,870			212,438
Other income (expenses):
Interest expense	(157,321		)	(4,241		)	(41		)	612			(160,991		)
Changes in fair value of derivatives embedded within convertible debt	19,409			—			—			—			19,409
Acceleration of interest expense related to debt conversion	(5,205		)	—			—			—			(5,205		)
Equity in earnings from real estate ventures	—			—			4,103			—			4,103
Loss on sale of investment securities available for sale	(11		)	—			—			—			(11		)
Equity in earnings from investments	3,122			18			—			—			3,140
Equity in earnings in consolidated subsidiaries	124,001			—			—			(124,001		)	—
Management fee income	9,870			—			—			(9,870		)	—
Other, net	4,178			1,044			4,786			(612		)	9,396
(Loss) income before provision for income taxes	(26,219		)	181,393			51,106			(124,001		)	82,279
Income tax benefit (expense)	63,064			(78,801		)	(17,428		)	—			(33,165		)
Net income	36,845			102,592			33,678			(124,001		)	49,114
Net loss attributed to non-controlling interest	—			—			(12,258		)	—			(12,258		)
Net income attributed to Vector Group Ltd.	$	36,845		$	102,592		$	21,420		$	(124,001	)	$	36,856
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(12,258	)	$	—		$	(12,258	)
Comprehensive income attributed to Vector Group Ltd.	$	34,922		$	102,536		$	21,420		$	(123,956	)	$	34,922

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Year Ended December 31, 2016
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	135,820		$	112,562		$	60,640		$	(211,386	)	$	97,636
Cash flows from investing activities:
Sale of investment securities	105,815			10,255			—			—			116,070
Maturities of investment securities	10,822			—			—			—			10,822
Purchase of investment securities	(117,211		)	—			—			—			(117,211		)
Proceeds from sale or liquidation of long-term investments	4,552			—			—			—			4,552
Purchase of long-term investments	—			—			(50		)	—			(50		)
Investments in real estate ventures	—			—			(44,107		)	—			(44,107		)
Distributions from real estate ventures	—			—			33,204			—			33,204
Increase in cash surrender value of life insurance policies	—			(484		)	—			—			(484		)
(Increase) decrease in restricted assets	(15		)	9,696			500			—			10,181
Investments in subsidiaries	(19,219		)	—			—			19,219			—
Proceeds from sale of fixed assets	—			32			13			—			45
Purchase of subsidiaries	—			—			(250		)	—			(250		)
Repayment of notes receivable	—			—			4,410			—			4,410
Capital expenditures	(86		)	(6,445		)	(20,160		)	—			(26,691		)
Investments in real estate held for sale	—			—			(245		)	—			(245		)
Pay down of investment securities	9,212			—			—			—			9,212
Net cash (used in) provided by investing activities	(6,130		)	13,054			(26,685		)	19,219			(542		)
Cash flows from financing activities:
Proceeds from issuance of debt	243,225			—			395			—			243,620
Deferred financing costs	(6,600		)	—			—			—			(6,600		)
Repayments of debt	—			(5,226		)	(139		)	—			(5,365		)
Borrowings under revolver	—			144,294			—			—			144,294
Repayments on revolver	—			(110,614		)	—			—			(110,614		)
Capital contributions received	—			2,800			16,419			(19,219		)	—
Intercompany dividends paid	—			(154,447		)	(56,939		)	211,386			—
Dividends and distributions on common stock	(198,947		)	—			—			—			(198,947		)
Distributions to non-controlling interest	—			—			(11,545		)	—			(11,545		)
Contributions from non-controlling interest	—			—			248			—			248
Proceeds from exercise of Vector options	398			—			—			—			398
Tax benefit of options exercised	579			—			—			—			579
Net cash provided by (used in) financing activities	38,655			(123,193		)	(51,561		)	192,167			56,068
Net increase (decrease) in cash and cash equivalents	168,345			2,423			(17,606		)	—			153,162
Cash and cash equivalents, beginning of year	111,470			12,375			116,523			—			240,368
Cash and cash equivalents, end of year	$	279,815		$	14,798		$	98,917		$	—		$	393,530

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Year Ended December 31, 2015
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	136,370		$	172,065		$	45,715		$	(209,671	)	$	144,479
Cash flows from investing activities:
Sale of investment securities	256,161			14,415			—			—			270,576
Maturities of investment securities	5,491			—			—			—			5,491
Purchase of investment securities	(207,822		)	(6,324		)	—			—			(214,146		)
Proceeds from sale of or liquidation of long-term investments	1,106			—			197			—			1,303
Purchase of long-term investments	(10,000		)	—			—			—			(10,000		)
Investments in real estate ventures	—			—			(70,272		)	—			(70,272		)
Distributions from real estate ventures	—			—			17,563			—			17,563
Increase in cash surrender value of life insurance policies	(1,257		)	(485		)	—			—			(1,742		)
Increase in restricted assets	(6		)	(6,883		)	—			—			(6,889		)
Issuance of notes receivable	—			—			(4,410		)	—			(4,410		)
Investments in subsidiaries	(103,174		)	—			—			103,174			—
Proceeds from sale of fixed assets	—			4			—			—			4
Repayments of notes receivable	—			—			4,000			—			4,000
Capital expenditures	—			(3,730		)	(7,247		)	—			(10,977		)
Proceeds from sale of preferred securities	—			—			1,000						1,000
Investments in real estate, net	—			—			(12,603		)	—			(12,603		)
Pay downs of investment securities	8,739			—			—			—			8,739
Net cash used in investing activities	(50,762		)	(3,003		)	(71,772		)	103,174			(22,363		)
Cash flows from financing activities:
Proceeds from issuance of debt	—			1,799			306			—			2,105
Deferred financing costs	—			(624		)	—			—			(624		)
Repayments of debt	—			(6,362		)	(322		)	—			(6,684		)
Borrowings under revolver	—			153,361			—			—			153,361
Repayments on revolver	—			(167,915		)	—			—			(167,915		)
Capital contributions received	—			33,658			69,516			(103,174		)	—
Intercompany dividends paid	—			(181,825		)	(29,343		)	211,168			—
Dividends and distributions on common stock	(188,151		)	—			—			—			(188,151		)
Distributions to non-controlling interest	—			—			(3,280		)	—			(3,280		)
Contributions from non-controlling interest	—			—			813			—			813
Proceeds from exercise of Vector options	1,441			—			—			—			1,441
Tax benefit of options exercised	821			1,497			—			(1,497		)	821
Net cash (used in) provided by financing activities	(185,889		)	(166,411		)	37,690			106,497			(208,113		)
Net (decrease) increase in cash and cash equivalents	(100,281		)	2,651			11,633			—			(85,997		)
Cash and cash equivalents, beginning of year	211,751			9,724			104,890			—			326,365
Cash and cash equivalents, end of year	$	111,470		$	12,375		$	116,523		$	—		$	240,368

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	Year Ended December 31, 2014
	Parent/ Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated Vector Group Ltd.
Net cash provided by operating activities	$	61,779		$	83,671		$	62,656		$	(100,730	)	$	107,376
Cash flows from investing activities:
Sale of investment securities	154,615			—			—			—			154,615
Maturities of investment securities	930			—			—			—			930
Purchase of investment securities	(299,417		)	(6,314		)	—			—			(305,731		)
Proceeds from sale or liquidation of long-term investments	2,367			—			49			—			2,416
Purchase of long-term investments	(12,000		)	—			—			—			(12,000		)
Investments in real estate ventures	—			—			(40,916		)	—			(40,916		)
Distributions from real estate ventures	—			—			7,309			—			7,309
Increase in cash surrender value of life insurance policies	—			(484		)	—			—			(484		)
Decrease (increase) in restricted assets	188			(371		)	(689		)	—			(872		)
Issuance of notes receivable	(35,000		)	—			(8,250		)	35,000			(8,250		)
Proceeds from sale of fixed assets	—			4			—			—			4
Purchase of subsidiaries	—			—			(750		)	—			(750		)
Repayments of notes receivable	35,000			—			4,850			(35,000		)	4,850
Purchase of preferred securities	—			—			(1,000		)	—			(1,000		)
Investments in subsidiaries	(85,278		)	—			—			85,278			—
Capital expenditures	(15		)	(16,466		)	(6,923		)	—			(23,404		)
Pay downs of investment securities	1,849			—			—			—			1,849
Net cash used in investing activities	(236,761		)	(23,631		)	(46,320		)	85,278			(221,434		)
Cash flows from financing activities:
Proceeds from issuance of debt	408,750			40,164			—			(35,000		)	413,914
Repayments of debt	—			(43,724		)	(3,877		)	35,000			(12,601		)
Deferred financing costs	(12,360		)	—			—			—			(12,360		)
Borrowings under revolver	—			886,130			—			—			886,130
Repayments on revolver	—			(898,788		)	—			—			(898,788		)
Capital contributions received	—			15,270			70,008			(85,278		)	—
Intercompany dividends paid	—			(61,180		)	(39,550		)	100,730			—
Dividends and distributions on common stock	(167,328		)	—			—			—			(167,328		)
Distributions to non-controlling interest	—			—			(9,339		)	—			(9,339		)
Proceeds from exercise of Vector options	5,151			—			—			—			5,151
Tax benefit of options exercised	1,178			—			—			—			1,178
Net cash provided by (used in) financing activities	235,391			(62,128		)	17,242			15,452			205,957
Net increase (decrease) in cash and cash equivalents	60,409			(2,088		)	33,578			—			91,899
Cash and cash equivalents, beginning of year	151,342			11,812			71,312			—			234,466
Cash and cash equivalents, end of year	$	211,751		$	9,724		$	104,890		$	—		$	326,365

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

VECTOR GROUP LTD.

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

(Dollars in Thousands)



Description	Balance at Beginning of Period		Additions Charged to Costs and Expenses		Deductions		Balance at End of Period
Year Ended December 31, 2016
Allowances for:
Doubtful accounts	$	112	$	—	$	24	$	88
Cash discounts	367		25,237		25,331		273
Deferred tax valuation allowance	3,900		539		—		4,439
Sales returns	7,822		4,962		6,226		6,558
Total	$	12,201	$	30,738	$	31,581	$	11,358
Year Ended December 31, 2015
Allowances for:
Doubtful accounts	$	37	$	75	$	—	$	112
Cash discounts	415		25,616		25,664		367
Deferred tax valuation allowance	4,933		—		1,033		3,900
Sales returns	7,720		8,516		8,414		7,822
Total	$	13,105	$	34,207	$	35,111	$	12,201
Year Ended December 31, 2014
Allowances for:
Doubtful accounts	$	192	$	31	$	186	$	37
Cash discounts	241		25,801		25,627		415
Deferred tax valuation allowance	6,014		—		1,081		4,933
Sales returns	4,420		6,886		3,586		7,720
Total	$	10,867	$	32,718	$	30,480	$	13,105

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation: The consolidated financial statements of Vector Group Ltd. (the “Company” or “Vector”) include the accounts of VGR Holding LLC (“VGR Holding”), Liggett Group LLC (“Liggett”), Vector Tobacco Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), Zoom E-Cigs LLC (“Zoom”), New Valley LLC (“New Valley”) and other less significant subsidiaries. New Valley includes the accounts of Douglas Elliman Realty, LLC (“Douglas Elliman”) and other less significant subsidiaries. All significant intercompany balances and transactions have been eliminated. Liggett and Vector Tobacco are engaged in the manufacture and sale of cigarettes in the United States. Zoom is engaged in the sale of electronic cigarettes in the United States. New Valley is engaged in the real estate business.
New Accounting Pronouncements	Revisions to December 31, 2015 Consolidated Balance Sheet. In April 2015, the Financial Accounting Standards Board (“FASB") issued Accounting Standard Update (“ASU”) No. 2015-03, “Interest-Imputation of Interest”, which requires debt issuance costs to be reported in the balance sheet as a direct deduction from the face amount of the note. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015. This amendment must be applied retrospectively to all periods presented. The Company adopted the provisions of this ASU retrospectively in the first quarter of 2016, and adjusted all prior periods accordingly. The adoption of this ASU will simplify the presentation of debt issuance costs and reduce complexity without decreasing the usefulness of information provided to users of financial statements. New Accounting Pronouncements: In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230) ("ASU 2016-18"). ASU 2016-18 provides guidance on the classification of restricted cash to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. This pronouncement is effective for reporting periods beginning after December 15, 2017 using a retrospective adoption method and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2016-18 will have on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-17, Interests Held through Related Parties That Are under Common Control (“ASU 2016-17”). ASU 2016-17 modifies existing guidance with respect to how a decision maker that holds an indirect interest in a VIE through a common control party determines whether it is the primary beneficiary of the VIE as part of the analysis of whether the VIE would need to be consolidated. Under ASU 2016-17, a decision maker would need to consider only its proportionate indirect interest in the VIE held through a common control party. As a result of ASU 2016-17, in certain cases, previous consolidation conclusions may change. ASU 2016-17 is effective for the Company's fiscal year beginning January 1, 2017 with retrospective application to January 1, 2016. The Company is currently assessing the impact the adoption of ASU 2016-17 will have on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 is intended to reduce diversity in practice on how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard provides guidance in a number of situations including, among others, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. ASU 2016-15 also provides guidance for classifying cash receipts and payments that have aspects of more than one class of cash flows. ASU 2016-15 is effective for the Company's fiscal year beginning January 1, 2018. Early adoption is permitted. The standard requires application using a retrospective transition method. The Company is currently assessing the impact the adoption of ASU 2016-15 will have on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 modifies U.S. GAAP by requiring the following, among others: (1) all excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit on the income statement (excess tax benefits are recognized regardless of whether the benefit reduces taxes payable in the current period); (2) excess tax benefits are to be classified along with other income tax cash flows as an operating activity in the statement of cash flows; (3) in the area of forfeitures, an entity can still follow the current U.S. GAAP practice of making an entity-wide accounting policy election to estimate the number of awards that are expected to vest or may instead account for forfeitures when they occur; and (4) classification as a financing activity in the statement of cash flows of cash paid by an employer to the taxing authorities when directly withholding shares for tax withholding purposes. ASU 2016-09 is effective for the Company's fiscal year beginning January 1, 2017, including interim periods. Early application is permitted. The Company is currently assessing the impact the adoption of ASU 2016-09 will have on the Company's consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 does not change the core principle of the guidance stated in ASU 2014-09, instead, the amendments in this ASU are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations and whether an entity reports revenue on a gross or net basis. ASU 2016-08 will have the same effective date and transition requirements as the new revenue standard issued in ASU 2014-09. The Company is currently assessing the impact the adoption of ASU 2016-08 and ASU 2014-09 will have on the Company's consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Investments- Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 will be effective for the Company’s fiscal year beginning January 1, 2017 and subsequent interim periods. The Company will apply the guidance prospectively for all future applications of the equity method of previously held investments subsequent to the adoption date. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (a consensus of the Emerging Issues Task Force) (“ASU 2016-06”). ASU 2016-06 clarifies the requirement for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under ASU 2016-06 is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments in ASU 2016-06 are effective for the Company's fiscal year beginning January 1, 2017, including interim periods. The Company is currently evaluating the method and impact the adoption of ASU 2016-06 will have on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. Accounting for lessors remains largely unchanged from current U.S. GAAP. ASU 2016-02 will be effective for the Company’s fiscal year beginning January 1, 2019 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments -- Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is evaluating the effect that this guidance will have on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combination (Topic 805): Simplifying the Accounting for Measurement Period Adjustments (“ASU 2015-16”), which requires adjustments to provisional amounts initially recorded in a business combination that are identified during the measurement period to be recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-15 also requires the disclosure of the nature and amount of measurement-period adjustments recognized in the current period, including separately the amounts in current-period income statement line items that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The guidance is effective for the Company beginning January 1, 2016. The Company will apply the guidance prospectively for all business combinations that occur subsequent to the adoption date. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40)-Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance to U.S. GAAP about management’s responsibility to evaluate whether there is a substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Specifically, ASU 2014-15 (1) defines the term substantial doubt, (2) requires an evaluation of every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plan, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for annual periods beginning after December 15, 2016 and interim periods within those reporting periods. Earlier adoption is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the Company’s consolidated financial statements. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-09”). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted for annual reporting periods beginning subsequent to December 15, 2016. The new standard is required to be applied retrospectively to each prior reporting period presented or with the cumulative effect of initially applying it recognized at the date of initial application. The Company is evaluating the effect of the adoption of ASU 2014-09 will have on its consolidated financial statements.
Estimates and Assumptions	Estimates and Assumptions: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Significant estimates subject to material changes in the near term include valuation of intangible assets, inventory valuation, promotional accruals, sales returns and allowances, actuarial assumptions of pension plans, the estimated fair value of embedded derivative liabilities, settlement accruals, valuation of investments, including other-than-temporary impairments to such investments, and litigation and defense costs. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents: Cash includes cash on hand, cash on deposit in banks, and money market accounts. Cash equivalents is comprised of short-term investments which have an original maturity of 90 days or less. Interest on short-term investments is recognized when earned. The Company places its cash and cash equivalents with large commercial banks. The Federal Deposit Insurance Corporation (“FDIC”) and Securities Investor Protection Corporation (“SIPC”) insure these balances, up to $250 and $500, respectively. Substantially all of the Company’s cash balances at December 31, 2016 are uninsured.
Financial Instruments	Financial Instruments: The carrying value of cash and cash equivalents, restricted assets, accounts receivable and short-term loans approximate their fair value. The fair value of the senior secured notes and the variable interest senior convertible debentures for the years ended December 31, 2016 and 2015 was estimated based on current market quotations. As required by authoritative guidance, derivatives embedded within the Company’s convertible debt are recognized on the Company’s balance sheet and are stated at estimated fair value at each reporting period. Changes in the fair value of the embedded derivatives are reflected quarterly as “Changes in fair value of derivatives embedded within convertible debt.” The estimated fair values for financial instruments presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair values.
Investment Securities	Investment Securities: The Company classifies investments in debt and marketable equity securities as available for sale. Investments classified as available for sale are carried at fair value, with net unrealized gains and losses included as a separate component of stockholders’ deficiency. The cost of securities sold is determined based on average cost. Investments in marketable equity securities represent less than a 20 percent interest in the investees and the Company does not exercise significant influence over such entities. Gains are recognized when realized in the Company’s consolidated statements of operations. Losses are recognized as realized or upon the determination of the occurrence of an other-than-temporary decline in fair value. The Company’s policy is to review its securities on a periodic basis to evaluate whether any security has experienced an other-than-temporary decline in fair value. If it is determined that an other-than-temporary decline exists in one of the Company’s marketable securities, it is the Company’s policy to record an impairment charge with respect to such investment in the Company’s consolidated statements of operations.
Significant Concentrations of Credit Risk	Significant Concentrations of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company places its temporary cash in money market securities (investment grade or better) with what management believes are high credit quality financial institutions. Liggett’s customers are primarily candy and tobacco distributors and large grocery, drug and convenience store chains. Two customers, accounted for 16% and 14% of Liggett's revenues in 2016 and 19% and 10% in 2015. One customer accounted for 19% of Liggett's revenues in 2014. Concentrations of credit risk with respect to trade receivables are generally limited due to the large number of customers, located primarily throughout the United States, comprising Liggett’s customer base. Liggett’s two largest customers represented approximately 9% and 3%, respectively, of net accounts receivable at December 31, 2016 and 4% and 1%, respectively, at December 31, 2015. Liggett’s largest customer represented approximately 11% of net accounts receivable at December 31, 2014. Ongoing credit evaluations of customers’ financial condition are performed and, generally, no collateral is required. Liggett maintains reserves for potential credit losses and such losses, in the aggregate, have not exceeded management’s expectations.
Accounts Receivable	Accounts Receivable: Accounts receivable-trade are recorded at their net realizable value. The allowance for doubtful accounts and cash discounts was $361 and $479 at December 31, 2016 and 2015, respectively. Uncollectible accounts are written off when the likelihood of collection is remote and when collection efforts have been abandoned.
Inventories	Inventories: Tobacco inventories are stated at the lower of cost and net realizable value with cost determined primarily by the last-in, first-out (LIFO) method at Liggett and Vector Tobacco. Although portions of leaf tobacco inventories may not be used or sold within one year because of the time required for aging, they are included in current assets, which is common practice in the industry. It is not practicable to determine the amount that will not be used or sold within one year.
Restricted Assets	Restricted Assets: Current restricted assets of $7,330 and $9,195 at December 31, 2016 and 2015, respectively, consist primarily of certificates of deposits and supersedeas bonds. Long-term restricted assets of $3,986 and $12,303 at December 31, 2016 and 2015, respectively, consist primarily of certificates of deposit which collateralize letters of credit, supersedeas bonds and deposits on long-term debt. The certificates of deposit mature at various dates from February 2017 to August 2020. The carrying value of restricted assets approximate their fair value.
Property, Plant and Equipment	Property, Plant and Equipment: Property, plant and equipment are stated at cost. Property, plant and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets, which are 20 to 30 years for buildings and 3 to 10 years for machinery and equipment. Repairs and maintenance costs are charged to expense as incurred. The costs of major renewals and betterments are capitalized. The cost and related accumulated depreciation of property, plant and equipment are removed from the accounts upon retirement or other disposition and any resulting gain or loss is reflected in operations. The cost of leasehold improvements is amortized over the lesser of the related leases or the estimated useful lives of the improvements. Costs of major additions and betterments are capitalized, while expenditures for routine maintenance and repairs are charged to expense as incurred.
Investment in Real Estate Ventures	Investments in Real Estate Ventures: In accounting for its Investments in real estate ventures, the Company identified its participation in Variable Interest Entities (“VIE”), which are defined as entities in which the equity investors at risk have not provided enough equity at risk to finance its activities without additional subordinated support or the equity investors (1) cannot directly or indirectly make decisions about the entity’s activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company's interest in VIEs is primarily in the form of equity ownership. The Company examines specific criteria and uses judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE's executive committee, existence of unilateral kick-out rights exclusive of protective rights or voting rights and level of economic disproportionality between the Company and its other partner(s). Accounting guidance requires the consolidation of VIEs in which the Company is the primary beneficiary. The guidance requires consolidation of VIEs that an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company's maximum exposure to loss in its investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs which is the carrying value. The Company's maximum exposure to loss in its investment in its consolidated VIEs is limited to its investment which is the carrying value of the investment net of the non-controlling interest. Creditors of the consolidated VIEs have no recourse to the general credit of the primary beneficiary.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets: Goodwill from acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in the Company’s acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) the Company’s strategies for growth in sales, income and cash flows. Goodwill is tested for impairment at least annually as of October 1 and monitored for interim triggering events on an on-going basis. Other intangible assets with indefinite useful lives are not amortized, but rather, are tested for impairment at least annually. In evaluating goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, the Company considers individual factors such as macroeconomic conditions, changes in the industry and the markets in which the Company operates as well as the historical and expected future financial performance. If the Company concludes that it is more likely than not that fair value is less than its carrying value, recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of the reporting unit to the Company’s carrying amount. Fair value is determined based on an income approach and a market approach that are equally weighted. If the carrying amount of the reporting unit, including the goodwill, exceeds the fair value of the reporting unit, the second step is performed. The second step involves a comparison of the implied fair value and carrying value of the goodwill of the reporting unit. To the extent that the carrying amount exceeds the implied fair value of the goodwill, an impairment loss is recognized. To determine the implied fair value of the Company’s indefinite-lived intangible asset, trademark, it utilizes the relief from royalty method, pursuant to which the asset is valued by reference to the amount of royalty income it would generate if licensed in an arm’s length transaction. Under the relief from royalty method, similar to the discounted cash flow method, estimated net revenues expected to be generated by the asset during its life are multiplied by a benchmark royalty rate and then discounted by the estimated weighted average cost of capital associated with the asset. The resulting capitalized royalty stream is an indication of the value of owning the asset. To the extent that the carrying amount exceeds the implied fair value of the intangible asset, an impairment loss is recognized. The fair value of the intangible asset associated with the benefit under the Master Settlement Agreement (“MSA”) is calculated using discounted cash flows. This approach involves two steps: (i) estimating future cash savings due to the payment exemption under the MSA and (ii) discounting the resulting cash flow savings to determine fair value. This fair value is then compared with the carrying value of the intangible asset associated with the benefit under the MSA. To the extent that the carrying amount exceeds the implied fair value of the intangible asset, an impairment loss is recognized. Intangible assets with finite lives are amortized over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below.
Impairment Long-Lived Assets	Impairment of Long-Lived Assets: The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs a test for recoverability, comparing projected undiscounted cash flows to the carrying value of the asset group to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on fair value of the asset on the basis of discounted cash flow. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal.
Pension, Postretirement and Postemployment Benefit Plans	Pension, Postretirement and Postemployment Benefits Plans: The cost of providing retiree pension benefits, health care and life insurance benefits is actuarially determined and accrued over the service period of the active employee group. The Company recognizes the funded status of each defined benefit pension plan, retiree health care and other postretirement benefit plans and postemployment benefit plans on the balance sheet.
Stock Options	Stock Options: The Company accounts for employee stock compensation plans by measuring compensation cost for share-based payments at fair value at grant date. The fair value is recognized as compensation expense over the vesting period on a straight-line basis. The terms of certain stock options awarded under the 2014 Management Incentive Plan in February 2014 and under the 1999 Plan in November 2013, February 2013, December 2009 and January 2001 provide for common stock dividend equivalents (paid in cash at the same rate as paid on the common stock) with respect to the shares underlying the unvested portion of the options. The Company recognizes payments of the dividend equivalent rights on these options on the Company's consolidated balance sheet as reductions in additional paid-in capital until fully utilized and then accumulated deficit ($6,258, $5,566 and $4,612, net of income taxes, for the years ended December 31, 2016, 2015 and 2014, respectively), which are included as “Distributions and dividends on common stock” in the Company’s consolidated statement of stockholders’ deficiency.
Income Taxes	Income Taxes: The Company accounts for income taxes under the liability method and records deferred taxes for the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes as well as tax credit carryforwards and loss carryforwards. These deferred taxes are measured by applying currently enacted tax rates. A valuation allowance reduces deferred tax assets when it is deemed more likely than not that some portion or all of the deferred tax assets will not be realized. A current tax provision is recorded for income taxes currently payable. The Company accounts for uncertainty in income taxes by recognizing the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. If the tax position meets the more-likely-than-not recognition threshold, the tax effect is recognized at the largest amount of the benefit that is greater than 50% likely of being realized upon ultimate settlement. The guidance requires that a liability created for unrecognized deferred tax benefits shall be presented as a liability and not combined with deferred tax liabilities or assets. The Company classifies all tax-related interest and penalties as income tax expense.
Distributions and Dividends on Common Stock	Distributions and Dividends on Common Stock: The Company records distributions on its common stock as dividends in its consolidated statement of stockholders’ deficiency to the extent of retained earnings. Any amounts exceeding retained earnings are recorded as a reduction to additional paid-in-capital to the extent paid-in-capital is available and then to accumulated deficit. The Company’s stock dividends are recorded as stock splits and given retroactive effect to earnings per share for all years presented.
Revenue Recognition	Revenue Recognition: Tobacco and E-Cigarettes sales: Revenues from sales are recognized upon the shipment of finished goods when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sale price is fixed or determinable and collectibility is reasonably assured. The Company provides an allowance for expected sales returns, net of any related inventory cost recoveries (e.g. federal excise taxes). Certain sales incentives, including promotional price discounts, are classified as reductions of net sales. The Company includes federal excise taxes on tobacco sales in revenues and cost of goods sold. Since the Company’s primary line of business is tobacco, the Company’s financial position and its results of operations and cash flows have been and could continue to be materially adversely affected by significant unit sales volume declines at the Company and industry levels, regulation, litigation and defense costs, increased tobacco costs or reductions in the selling price of cigarettes in the near term. Tobacco Shipping and Handling Fees and Costs: Shipping and handling fees related to sales transactions are neither billed to customers nor recorded as revenue. Shipping and handling costs, which were $5,268 in 2016, $5,488 in 2015 and $5,585 in 2014 are recorded as operating, selling, administrative and general expenses. Real estate sales: Revenue is recognized only when persuasive evidence of an arrangement exists, the price is fixed or determinable, the transaction has been completed and collectibility of the resulting receivable is reasonably assured. Real estate commissions earned by the Company’s real estate brokerage businesses are recorded as revenue on a gross basis upon the closing of a real estate transaction as evidenced when the escrow or similar account is closed, the transaction documents have been recorded and funds are distributed to all appropriate parties. Commissions expenses are recognized concurrently with related revenues. Property management fees and rental commissions earned are recorded as revenue when the related services are performed and the earnings process is complete.
Tobacco and E-Cigarettes sales	Tobacco and E-Cigarettes sales: Revenues from sales are recognized upon the shipment of finished goods when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sale price is fixed or determinable and collectibility is reasonably assured. The Company provides an allowance for expected sales returns, net of any related inventory cost recoveries (e.g. federal excise taxes). Certain sales incentives, including promotional price discounts, are classified as reductions of net sales. The Company includes federal excise taxes on tobacco sales in revenues and cost of goods sold. Since the Company’s primary line of business is tobacco, the Company’s financial position and its results of operations and cash flows have been and could continue to be materially adversely affected by significant unit sales volume declines at the Company and industry levels, regulation, litigation and defense costs, increased tobacco costs or reductions in the selling price of cigarettes in the near term.
Tobacco Shipping and Handling Fees and Costs	Tobacco Shipping and Handling Fees and Costs: Shipping and handling fees related to sales transactions are neither billed to customers nor recorded as revenue. Shipping and handling costs, which were $5,268 in 2016, $5,488 in 2015 and $5,585 in 2014 are recorded as operating, selling, administrative and general expenses.
Real estate sales	Real estate sales: Revenue is recognized only when persuasive evidence of an arrangement exists, the price is fixed or determinable, the transaction has been completed and collectibility of the resulting receivable is reasonably assured. Real estate commissions earned by the Company’s real estate brokerage businesses are recorded as revenue on a gross basis upon the closing of a real estate transaction as evidenced when the escrow or similar account is closed, the transaction documents have been recorded and funds are distributed to all appropriate parties. Commissions expenses are recognized concurrently with related revenues. Property management fees and rental commissions earned are recorded as revenue when the related services are performed and the earnings process is complete.
Advertising	Advertising: Tobacco and E-Cigarettes advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $3,397, $5,097 and $9,493 for the years ended December 31, 2016, 2015 and 2014, respectively. Real estate advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $22,835, $25,657 and $14,952 for the years ended December 31, 2016 and 2015 and 2014, respectively.
Comprehensive Income	Comprehensive Income: The Company presents net income and other comprehensive income in two separate, but consecutive, statements. The items are presented before related tax effects with detailed amounts shown for the income tax expense or benefit related to each component of other comprehensive income.
Fair Value of Derivatives Embedded within Convertible Debt	Fair Value of Derivatives Embedded within Convertible Debt: The Company has estimated the fair market value of the embedded derivatives based principally on the results of a valuation model. A readily determinable fair value of the embedded derivatives is not available. The estimated fair value of the derivatives embedded within the convertible debt is based principally on the present value of future dividend payments expected to be received by the convertible debt holders over the term of the debt. The discount rate applied to the future cash flows is estimated based on a spread in the yield of the Company’s debt when compared to risk-free securities with the same duration. The valuation model assumes future dividend payments by the Company and utilizes interest rates and credit spreads for secured to unsecured debt, unsecured to subordinated debt and subordinated debt to preferred stock to determine the fair value of the derivatives embedded within the convertible debt. The valuation also considers other items, including current and future dividends and the volatility of Vector’s stock price. At December 31, 2016, the range of estimated fair market values of the Company’s embedded derivatives was between $111,653 and $113,090. The Company recorded the fair market value of its embedded derivatives at the approximate midpoint of the range at $112,332 as of December 31, 2016. At December 31, 2015, the range of estimated fair market values of the Company’s embedded derivatives was between $143,422 and $144,660. The Company recorded the fair market value of its embedded derivatives at the midpoint of the range at $144,042 as of December 31, 2015. The estimated fair market value of the Company’s embedded derivatives could change significantly based on future market conditions. (See Note 9.)
Capital and Credit Markets	Capital and Credit Markets: The Company has performed additional assessments to determine the impact, if any, of market developments, on the Company’s consolidated financial statements. The Company’s additional assessments have included a review of access to liquidity in the capital and credit markets, counterparty creditworthiness, value of the Company’s investments (including long-term investments, mortgage receivable and employee benefit plans) and macroeconomic conditions. The volatility in capital and credit markets may create additional risks in the upcoming months and possibly years and the Company will continue to perform additional assessments to determine the impact, if any, on the Company’s consolidated financial statements. Thus, future impairment charges may occur. On a quarterly basis, the Company evaluates its investments to determine whether an impairment has occurred. If so, the Company also makes a determination of whether such impairment is considered temporary or other than temporary. The Company believes that the assessment of temporary or other-than-temporary impairment is facts-and-circumstances driven. However, among the matters that are considered in making such a determination are the period of time the investment has remained below its cost or carrying value, the likelihood of recovery given the reason for the decrease in market value and the Company’s original expected holding period of the investment.
Contingencies	Contingencies: The Company records Liggett’s product liability legal expenses as operating, selling, administrative and general expenses as those costs are incurred. As discussed in Note 15, legal proceedings covering a wide range of matters are pending or threatened in various jurisdictions against Liggett and the Company. The Company and its subsidiaries record provisions in their consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable and the amount of loss can be reasonably estimated. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, except as disclosed in Note 15: (i) management has concluded that it is not probable that a loss has been incurred in any of the pending tobacco-related cases; or (ii) management is unable to estimate the possible loss or range of loss that could result from an unfavorable outcome of any of the pending tobacco-related cases and, therefore, management has not provided any amounts in the consolidated financial statements for unfavorable outcomes, if any. Legal defense costs are expensed as incurred. Except as discussed in Note 15, management is unable to estimate the possible loss or range of loss from remaining Engle progeny cases as there are currently multiple defendants in each case and discovery has not occurred or is limited. As a result, the Company lacks information about whether plaintiffs are, in fact, Engle class members (non-class members’ claims are generally time-barred), the relevant smoking history, the nature of the alleged injury and the availability of various defenses, among other things. Further, plaintiffs typically do not specify their demand for damages. Litigation is subject to many uncertainties, and it is possible that the Company’s consolidated financial position, results of operations or cash flows could be materially adversely affected by an unfavorable outcome in any such tobacco-related litigation.
Earnings Per Share	Basic EPS is computed by dividing net income available to common stockholders attributed to Vector Group Ltd. by the weighted-average number of shares outstanding, which includes vested restricted stock. Diluted EPS includes the dilutive effect of non-vested restricted stock grants, stock options and convertible securities. Diluted EPS is computed by dividing net income available to common stockholders by the diluted weighted-average number of shares outstanding, which includes dilutive non-vested restricted stock grants, stock options and convertible securities.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Schedule of cumulative impacts of the application of new ASU

The cumulative impacts of the application of the new ASU are presented in the table below:



	December 31, 2015
	As Previously Reported			ASU Adoption			As Revised

Other assets	$	51,261		$	(30,141	)	$	21,120
Total assets	$	1,310,756		$	(30,141	)	$	1,280,615

Notes payable, long-term debt and other obligations, less current portion	$	886,249		$	(30,141	)	$	856,108
Total liabilities	1,432,917			(30,141		)	1,402,776
Total stockholders' deficiency	(122,161		)	—			(122,161		)
Total liabilities and stockholders' deficiency	$	1,310,756		$	(30,141	)	$	1,280,615

Schedule of accumulated other comprehensive income (loss), net of income taxes

The components of accumulated other comprehensive loss, net of income taxes, were as follows:



	December 31, 2016			December 31, 2015			December 31, 2014
Net unrealized gains on investment securities available for sale, net of income taxes of $6,272, $7,758, and $12,706, respectively	$	9,869		$	12,048		$	18,102
Net unrealized losses on long-term investment accounted for under the equity method, net of income tax benefits of $0, $0, and $1,156, respectively	—			—			(1,658		)
Forward contracts adjustment, net of income taxes of $0, $11, and $36, respectively	(2		)	(19		)	(55		)
Pension-related amounts, net of income taxes of $14,491, $13,977, and $12,167, respectively	(21,112		)	(20,342		)	(17,732		)
Accumulated other comprehensive loss	$	(11,245	)	$	(8,313	)	$	(1,343	)

Schedule of other income (loss), net

Other, net consists of:



	Year Ended
	December 31,
	2016			2015			2014
Interest and dividend income	$	6,018		$	7,038		$	5,803
Out-of-period adjustment	—			—			1,231
Acceleration of closing fee related to termination of Douglas Elliman joint venture	—			—			2,335
Impairment of real estate, net	—			(230		)	—
Loss on sale of assets	—			(78		)	—
Gain on long-term investment	190			390			—
Impairment of long-term investments	(1,203		)	(811		)	—
Other (expense) income	(273		)	100			27
Other, net	$	4,732		$	6,409		$	9,396

Schedule of other current liabilities

Other current liabilities consists of:



	December 31, 2016		December 31, 2015
Accounts payable	$	10,573	$	19,639
Accrued promotional expenses	23,763		24,816
Accrued excise and payroll taxes payable, net	10,044		26,556
Accrued interest	35,449		28,147
Commissions payable	6,164		11,008
Accrued salaries and benefits	26,958		22,774
Other current liabilities	22,901		21,277
Total other current liabilities	$	135,852	$	154,217

Net income for purposes of determining basic and diluted EPS

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22580-107794

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=66092750

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e765-108305

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22499-107794

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22583-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e725-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

+ Details

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

As a result, in its calculation of basic EPS for the years ended December 31, 2016, 2015 and 2014, respectively, the Company has adjusted its net income for the effect of these participating securities as follows:



	2016			2015			2014
Net income attributed to Vector Group Ltd.	$	71,127		$	59,198		$	36,856
Income attributable to participating securities	(2,241		)	(1,752		)	(1,024		)
Net income available to common stockholders attributed to Vector Group Ltd.	$	68,886		$	57,446		$	35,832

Basic and diluted EPS calculation shares

Basic and diluted EPS were calculated using the following shares for the years ended December 31, 2016, 2015 and 2014:



	2016	2015	2014
Weighted-average shares for basic EPS	124,031,786	123,648,565	113,479,170
Plus incremental shares related to stock options and non-vested restricted stock	227,790	33,632	70,069
Weighted-average shares for diluted EPS	124,259,576	123,682,197	113,549,239

Outstanding shares not included in the computation of diluted EPS



	Year Ended December 31,
	2016		2015		2014
Weighted-average number of shares issuable upon conversion of debt	26,140,250		26,369,018		33,827,057
Weighted-average conversion price	$	18.70	$	18.62	$	16.03

Investment Securities Available for Sale (Tables)

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities

The components of investment securities available for sale at December 31, 2016 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable equity securities	$	34,956	$	16,141	$	(254	)	$	50,843
Mutual funds invested in fixed income securities	20,507		81		(6		)	20,582
Marketable debt securities	85,297		181		—			85,478
Total investment securities available for sale	$	140,760	$	16,403	$	(260	)	$	156,903

The components of investment securities available for sale at December 31, 2015 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable equity securities	$	47,502	$	19,833	$	(62	)	$	67,273
Mutual funds invested in fixed income securities	20,126		—		(15		)	20,111
Marketable debt securities	94,540		52		—			94,592
Total investment securities available for sale	$	162,168	$	19,885	$	(77	)	$	181,976

Schedule of Maturity Dates of Fixed Income Securities

The table below summarizes the maturity dates of marketable debt securities at December 31, 2016.



Investment Type:	Fair Value		Under 1 Year		1 Year up to 5 Years		More than 5 Years
U.S. Government securities	$	30,642	$	—	$	30,642	$	—
Corporate securities	36,687		4,364		32,173		150
U.S. mortgage-backed securities	6,500		—		36		6,464
Commercial mortgage-backed securities	1,398		—		—		1,398
Commercial paper	8,980		8,980		—		—
Index-linked U.S. bonds	770		—		770		—
Foreign fixed-income securities	501		$	—	$	501	$	—
Total marketable debt securities by maturity dates	$	85,478	$	13,344	$	64,122	$	8,012

Schedule of Unrealized Loss on Investments

The available-for-sale investment securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:



	In loss position for
	Less than 12 months					12 months or more
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Total Fair Value		Total Unrealized Losses
December 31, 2016
Marketable equity securities	$	5,746	$	(254	)	$	—	$	—	$	5,746	$	(254	)
Mutual funds invested in fixed income securities	10,253		(6		)					10,253		(6		)
	$	15,999	$	(260	)	$	—	$	—	$	15,999	$	(260	)

December 31, 2015
Marketable equity securities	$	5,938	$	(62	)	$	—	$	—	$	5,938	$	(62	)
Mutual funds invested in fixed income securities	10,053		(15		)	—		—		10,053		(15		)
	$	15,991	$	(77	)	$	—	$	—	$	15,991	$	(77	)

Schedule of Realized Gains (Losses)

Gross realized gains and losses on available-for-sale investment securities were as follows:



	Year Ended December 31,
	2016			2015			2014
Gross realized gains on sales	$	3,408		$	13,727		$	275
Gross realized losses on sales	(501		)	(2,589		)	(286		)
Gains (losses) on sale of investment securities available for sale	$	2,907		$	11,138		$	(11	)

Other-than-temporary impairments	$	(5,381	)	$	(12,846	)	$	—

Inventories (Tables)

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Inventories

Inventories consist of:



	December 31, 2016			December 31, 2015
Leaf tobacco	$	46,253		$	49,856
Other raw materials	3,733			3,578
Work-in-process	633			789
Finished goods	65,052			61,493
E-Cigarettes	—			80
Inventories at current cost	115,671			115,796
LIFO adjustments	(25,837		)	(29,280		)
	$	89,834		$	86,516

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, plant and equipment

Property, plant and equipment consist of:



	December 31, 2016			December 31, 2015
Land and improvements	$	1,442		$	1,442
Buildings	16,010			15,908
Machinery and equipment	184,623			178,131
Leasehold improvements	32,419			21,142
	234,494			216,623
Less accumulated depreciation and amortization	(154,046		)	(140,991		)
	$	80,448		$	75,632

Long-Term Investments (Tables)

12 Months Ended

Dec. 31, 2016

Long-term Investments [Abstract]

Cost method investments

Long-term investments consisted of the following:



	December 31, 2016		December 31, 2015
Investments accounted at cost	$	35,476	$	41,231
Investments accounted under the equity method	17,721		21,495
	$	53,197	$	62,726

Long-term investments accounted at cost consisted of the following:



	December 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Investment partnerships	$	34,975	$	40,569	$	40,730	$	44,217
Real estate partnership	501		494		501		552
	$	35,476	$	41,063	$	41,231	$	44,769

Equity method investments

Long-term investments consisted of the following:



	December 31, 2016		December 31, 2015
Investments accounted at cost	$	35,476	$	41,231
Investments accounted under the equity method	17,721		21,495
	$	53,197	$	62,726

Long-term investments accounted for under the equity method consisted of the following:



	December 31, 2016		December 31, 2015
Indian Creek Investors LP ("Indian Creek")	$	5,248	$	4,989
Boyar Value Fund ("Boyar")	7,816		7,302
Ladenburg Thalmann Financial Services Inc. ("LTS")	4,657		9,204
Castle Brands, Inc. ("Castle")	—		—
	$	17,721	$	21,495

Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for Indian Creek and Boyar.



	December 31, 2016		December 31, 2015
Investment securities	$	67,546	$	40,676
Cash and cash equivalents	33		101
Other assets	28		8,664
Total assets	$	67,607	$	49,441

Other liabilities	$	17,216	$	408
Total liabilities	17,216		408
Partners' capital	50,391		49,033
Total liabilities and partners' capital	$	67,607	$	49,441



	Year Ended December 31,
	2016			2015			2014
Investment income	$	438		$	565		$	3,314
Expenses	(684		)	(868		)	(1,298		)
Net investment (loss) income	(246		)	(303		)	2,016
Total net realized gain (loss) and net change in unrealized depreciation from investments	3,341			(14,809		)	(168		)
Net increase (decrease) in partners' capital resulting from operations	$	3,095		$	(15,112	)	$	1,848

Pursuant to Rule 4-08(g), the following summarized financial data is presented for LTS. The Company has elected a three-month lag reporting period for LTS.



	September 30, 2016			September 30, 2015
Cash and cash equivalents	$	105,989		$	114,548
Receivables from clearing brokers, note receivable and other receivable, net	115,887			115,334
Goodwill and intangible assets, net	251,411			269,774
Other assets	70,469			63,634
Total assets	$	543,756		$	563,290

Accrued compensation, commissions and fees payable	$	76,191		$	72,936
Accounts payable and accrued liabilities	37,189			24,615
Notes payable, net of $1,001 and $1,655 unamortized discount in 2016 and 2015, respectively	48,364			59,184
Other liabilities	30,716			21,487
Total liabilities	192,460			178,222
Preferred stock	1			1
Common stock	19			19
Additional paid-in capital	509,335			517,988
Accumulated deficit	(158,055		)	(132,952		)
Total controlling shareholders' equity	351,300			385,056
Non-controlling interest	(4		)	12
Total shareholders' equity	351,296			385,068
Total liabilities and shareholders' equity	$	543,756		$	563,290

(1) The table above presents the nature and amounts of the major components of assets and liabilities, along with information regarding redeemable stock and non-controlling interest.



	Twelve Months Ended September 30,
	2016			2015			2014
Revenues	$	1,104,227		$	1,122,735		$	867,756
Expenses	(1,119,366		)	(1,132,010		)	(856,072		)
Gross (loss) profit	(15,139		)	(9,275		)	11,684
Change in fair value of contingent consideration	(154		)	31			12
(Loss) income from continuing operations	(15,293		)	(9,244		)	11,696
Net (loss) income	$	(25,159	)	$	4,396		$	22,482

Pursuant to Rule 4-08(g), the following summarized financial data is presented for Castle. The Company has elected a three-month lag reporting period for Castle.



	September 30, 2016		September 30, 2015
Current assets	$	42,285	$	36,922
Non-current assets	9,085		9,845
Total assets	$	51,370	$	46,767

Current liabilities	$	12,583	$	9,947
Non-current liabilities	15,215		13,696
Total liabilities	27,798		23,643
Total controlling shareholders' equity	19,838		19,978
Non-controlling interest	3,734		3,146
Total shareholders' equity	23,572		23,124
Total liabilities and shareholders' equity	$	51,370	$	46,767



	Twelve Months Ended September 30,
	2016			2015			2014
Revenues	$	73,549		$	67,143		$	51,426
Expenses	(44,236		)	(41,317		)	(32,495		)
Gross profit	29,313			25,826			18,931
Other expenses	(28,338		)	(25,920		)	(20,399		)
Income (loss) from continuing operations	975			(94		)	(1,468		)
Net loss	$	(1,263	)	$	(2,946	)	$	(4,845	)

Condominium and Mixed Use Development:



	Year Ended December 31,
	2016		2015		2014
Income Statement
Revenue	$	511,844	$	141,884	$	182,635
Cost of Goods Sold	303,020		92,837		96,993
Other Expenses	42,566		10,672		6,798
Income from continuing operations	$	166,258	$	38,375	$	78,844



	December 31, 2016		December 31, 2015
Balance Sheets
Investment in real estate	$	3,413,928	$	2,921,611
Total assets	3,786,206		3,237,835
Total debt	2,478,574		2,014,682
Total liabilities	2,687,351		2,195,940
Non controlling interest	564,194		535,573

Apartment & Office Buildings:



	Year Ended December 31,
	2016		2015		2014
Income Statement
Revenue	$	87,225	$	83,871	$	85,704
Other Expenses	83,117		75,384		86,153
Income from continuing operations	$	4,108	$	8,487	$	(449	)



	December 31, 2016			December 31, 2015
Balance Sheets
Investment in real estate	$	488,732		$	590,331
Total assets	522,459			626,513
Total debt	475,668			512,479
Total liabilities	484,377			529,692
Non controlling interest	(9,931		)	(4,463		)

Hotels:



	Year Ended December 31,
	2016			2015			2014
Income Statement
Revenue	$	81,517		$	83,324		$	82,899
Cost of Goods Sold	4,262			3,837			3,064
Other Expenses	114,582			112,069			133,258
Loss from continuing operations	$	(37,327	)	$	(32,582	)	$	(53,423	)



	December 31, 2016		December 31, 2015
Balance Sheets
Investment in real estate	$	781,461	$	824,753
Total assets	854,559		894,447
Total debt	491,200		511,029
Total liabilities	509,385		538,426
Non controlling interest	312,113		294,470

Commercial:



	Year Ended December 31,
	2016			2015			2014
Income Statement
Revenue	$	8,410		$	5,638
Other Expenses	11,195			5,642
Loss from continuing operations	$	(2,785	)	$	(4	)	$	—



	December 31, 2016		December 31, 2015
Balance Sheets
Investment in real estate	$	61,091	$	65,398
Total assets	74,512		67,343
Total debt	55,625		55,624
Total liabilities	57,601		56,415

Other:



	Year Ended December 31,
	2016		2015		2014
Income Statement
Revenue	$	3,344	$	3,030	$	2,714
Other Expenses	1,227		1,049		1,019
Income from continuing operations	$	2,117	$	1,981	$	1,695



	December 31, 2016		December 31, 2015
Balance Sheets
Total assets	$	5,382	$	5,157
Total liabilities	$	1,230	$	1,022

New Valley LLC (Tables)

12 Months Ended

Dec. 31, 2016

Real Estate [Abstract]

Investments in real estate ventures

New Valley received distributions from its investments in real estate ventures as follows:



	December 31, 2016			December 31, 2015
Condominium and Mixed Use Development:
New York City SMSA	$	(27,574	)	$	(18,787	)
All other U.S. areas	(10,336		)	—
	(37,910		)	(18,787		)
Apartment Buildings:
All other U.S. areas	(9,055		)	(3,290		)
	(9,055		)	(3,290		)
Hotels:
International	(8,120		)	—
	(8,120		)	—
Commercial:
New York City SMSA	(515		)	(480		)
	(515		)	(480		)

Other	(1,050		)	(900		)
Total distributions	$	(56,650	)	$	(23,457	)

The components of “Investments in real estate ventures” were as follows:



	Range of Ownership	December 31, 2016		December 31, 2015
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	131,770	$	138,247
All other U.S. areas	15.0% - 48.5%	40,950		25,776
		172,720		164,023
Apartment Buildings:
All other U.S. areas	7.6% - 16.3%	8,287		15,754
		8,287		15,754
Hotels:
New York City SMSA	5.2%	21,895		19,697
International	49.0%	3,037		10,228
		24,932		29,925
Commercial:
New York City SMSA	49.0%	3,290		5,449
All other U.S. areas	2.1%	10,000		—
		13,290		5,449

Other	50.0%	2,029		2,017
Investments in real estate ventures		$	221,258	$	217,168

New Valley made contributions to its investments in real estate ventures as follows:



	December 31, 2016		December 31, 2015
Condominium and Mixed Use Development:
New York City SMSA	$	5,661	$	48,232
All other U.S. areas	23,874		12,836
	29,535		61,068
Hotels:
New York City SMSA	4,082		1,896
International	490		1,377
	4,572		3,273
Commercial:
New York City SMSA	—		5,931
All other U.S. areas	10,000		—
	10,000		5,931

Total contributions	$	44,107	$	70,272

New Valley's maximum exposure to loss was as follows:



	December 31, 2016
Condominium and Mixed Use Development:
New York City SMSA	$	133,335
All other U.S. areas	46,712
	180,047
Apartment Buildings:
All other U.S. areas	8,287
	8,287
Hotels:
New York City SMSA	21,895
International	3,037
	24,932
Commercial:
New York City SMSA	3,290
All other U.S. areas	10,000
	13,290
Other	2,029
Total maximum exposure to loss	$	228,585

New Valley recognized equity in earnings (losses) from real estate ventures as follows:



	December 31, 2016			December 31, 2015			December 31, 2014
Condominium and Mixed Use Development:
New York City SMSA	$	7,432		$	4,533		$	7,806
All other U.S. areas	(1,793		)	(869		)	100
	5,639			3,664			7,906
Apartment Buildings:
All other U.S. areas	1,588			527			341
	1,588			527			341
Hotels:
New York City SMSA	(1,884		)	(1,540		)	(2,643		)
International	439			(1,594		)	(1,612		)
	(1,445		)	(3,134		)	(4,255		)
Commercial:
New York City SMSA	(1,644		)	(2		)	—
	(1,644		)	(2		)	—

Other	1,062			946			111
Total equity in earnings from real estate ventures	$	5,200		$	2,001		4,103

Equity method investments

Long-term investments consisted of the following:



	December 31, 2016		December 31, 2015
Investments accounted at cost	$	35,476	$	41,231
Investments accounted under the equity method	17,721		21,495
	$	53,197	$	62,726

Long-term investments accounted for under the equity method consisted of the following:



	December 31, 2016		December 31, 2015
Indian Creek Investors LP ("Indian Creek")	$	5,248	$	4,989
Boyar Value Fund ("Boyar")	7,816		7,302
Ladenburg Thalmann Financial Services Inc. ("LTS")	4,657		9,204
Castle Brands, Inc. ("Castle")	—		—
	$	17,721	$	21,495

Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for Indian Creek and Boyar.



	December 31, 2016		December 31, 2015
Investment securities	$	67,546	$	40,676
Cash and cash equivalents	33		101
Other assets	28		8,664
Total assets	$	67,607	$	49,441

Other liabilities	$	17,216	$	408
Total liabilities	17,216		408
Partners' capital	50,391		49,033
Total liabilities and partners' capital	$	67,607	$	49,441



	Year Ended December 31,
	2016			2015			2014
Investment income	$	438		$	565		$	3,314
Expenses	(684		)	(868		)	(1,298		)
Net investment (loss) income	(246		)	(303		)	2,016
Total net realized gain (loss) and net change in unrealized depreciation from investments	3,341			(14,809		)	(168		)
Net increase (decrease) in partners' capital resulting from operations	$	3,095		$	(15,112	)	$	1,848

Pursuant to Rule 4-08(g), the following summarized financial data is presented for LTS. The Company has elected a three-month lag reporting period for LTS.



	September 30, 2016			September 30, 2015
Cash and cash equivalents	$	105,989		$	114,548
Receivables from clearing brokers, note receivable and other receivable, net	115,887			115,334
Goodwill and intangible assets, net	251,411			269,774
Other assets	70,469			63,634
Total assets	$	543,756		$	563,290

Accrued compensation, commissions and fees payable	$	76,191		$	72,936
Accounts payable and accrued liabilities	37,189			24,615
Notes payable, net of $1,001 and $1,655 unamortized discount in 2016 and 2015, respectively	48,364			59,184
Other liabilities	30,716			21,487
Total liabilities	192,460			178,222
Preferred stock	1			1
Common stock	19			19
Additional paid-in capital	509,335			517,988
Accumulated deficit	(158,055		)	(132,952		)
Total controlling shareholders' equity	351,300			385,056
Non-controlling interest	(4		)	12
Total shareholders' equity	351,296			385,068
Total liabilities and shareholders' equity	$	543,756		$	563,290

(1) The table above presents the nature and amounts of the major components of assets and liabilities, along with information regarding redeemable stock and non-controlling interest.



	Twelve Months Ended September 30,
	2016			2015			2014
Revenues	$	1,104,227		$	1,122,735		$	867,756
Expenses	(1,119,366		)	(1,132,010		)	(856,072		)
Gross (loss) profit	(15,139		)	(9,275		)	11,684
Change in fair value of contingent consideration	(154		)	31			12
(Loss) income from continuing operations	(15,293		)	(9,244		)	11,696
Net (loss) income	$	(25,159	)	$	4,396		$	22,482

Pursuant to Rule 4-08(g), the following summarized financial data is presented for Castle. The Company has elected a three-month lag reporting period for Castle.



	September 30, 2016		September 30, 2015
Current assets	$	42,285	$	36,922
Non-current assets	9,085		9,845
Total assets	$	51,370	$	46,767

Current liabilities	$	12,583	$	9,947
Non-current liabilities	15,215		13,696
Total liabilities	27,798		23,643
Total controlling shareholders' equity	19,838		19,978
Non-controlling interest	3,734		3,146
Total shareholders' equity	23,572		23,124
Total liabilities and shareholders' equity	$	51,370	$	46,767



	Twelve Months Ended September 30,
	2016			2015			2014
Revenues	$	73,549		$	67,143		$	51,426
Expenses	(44,236		)	(41,317		)	(32,495		)
Gross profit	29,313			25,826			18,931
Other expenses	(28,338		)	(25,920		)	(20,399		)
Income (loss) from continuing operations	975			(94		)	(1,468		)
Net loss	$	(1,263	)	$	(2,946	)	$	(4,845	)

Condominium and Mixed Use Development:



	Year Ended December 31,
	2016		2015		2014
Income Statement
Revenue	$	511,844	$	141,884	$	182,635
Cost of Goods Sold	303,020		92,837		96,993
Other Expenses	42,566		10,672		6,798
Income from continuing operations	$	166,258	$	38,375	$	78,844



	December 31, 2016		December 31, 2015
Balance Sheets
Investment in real estate	$	3,413,928	$	2,921,611
Total assets	3,786,206		3,237,835
Total debt	2,478,574		2,014,682
Total liabilities	2,687,351		2,195,940
Non controlling interest	564,194		535,573

Apartment & Office Buildings:



	Year Ended December 31,
	2016		2015		2014
Income Statement
Revenue	$	87,225	$	83,871	$	85,704
Other Expenses	83,117		75,384		86,153
Income from continuing operations	$	4,108	$	8,487	$	(449	)



	December 31, 2016			December 31, 2015
Balance Sheets
Investment in real estate	$	488,732		$	590,331
Total assets	522,459			626,513
Total debt	475,668			512,479
Total liabilities	484,377			529,692
Non controlling interest	(9,931		)	(4,463		)

Hotels:



	Year Ended December 31,
	2016			2015			2014
Income Statement
Revenue	$	81,517		$	83,324		$	82,899
Cost of Goods Sold	4,262			3,837			3,064
Other Expenses	114,582			112,069			133,258
Loss from continuing operations	$	(37,327	)	$	(32,582	)	$	(53,423	)



	December 31, 2016		December 31, 2015
Balance Sheets
Investment in real estate	$	781,461	$	824,753
Total assets	854,559		894,447
Total debt	491,200		511,029
Total liabilities	509,385		538,426
Non controlling interest	312,113		294,470

Commercial:



	Year Ended December 31,
	2016			2015			2014
Income Statement
Revenue	$	8,410		$	5,638
Other Expenses	11,195			5,642
Loss from continuing operations	$	(2,785	)	$	(4	)	$	—



	December 31, 2016		December 31, 2015
Balance Sheets
Investment in real estate	$	61,091	$	65,398
Total assets	74,512		67,343
Total debt	55,625		55,624
Total liabilities	57,601		56,415

Other:



	Year Ended December 31,
	2016		2015		2014
Income Statement
Revenue	$	3,344	$	3,030	$	2,714
Other Expenses	1,227		1,049		1,019
Income from continuing operations	$	2,117	$	1,981	$	1,695



	December 31, 2016		December 31, 2015
Balance Sheets
Total assets	$	5,382	$	5,157
Total liabilities	$	1,230	$	1,022

Investments in Real Estate, net

The components of “Investments in Real Estate, net” were as follows:



	December 31, 2016		December 31, 2015
Escena, net	$	10,792	$	10,716
Sagaponack	12,848		12,602
Investment in real estate, net	$	23,640	$	23,318

The assets have been classified as an “Investments in Real Estate, net” on the Company’s consolidated balance sheet and the components are as follows:



	December 31, 2016			December 31, 2015
Land and land improvements	$	8,907		$	8,907
Building and building improvements	1,878			1,875
Other	2,028			1,923
	12,813			12,705
Less accumulated depreciation	(2,021		)	(1,989		)
	$	10,792		$	10,716

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill and other intangible assets, net

The components of Goodwill and other intangible assets, net were as follows:



	December 31, 2016		December 31, 2015
Goodwill	$	70,815	$	70,791

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	3,592		5,657

Total goodwill and other intangible assets, net	$	261,918	$	263,959

Schedule of intangible asset and contract liabilities assumed

Other intangible assets and contract liabilities assumed were as follows:



	Useful Lives in Years	December 31, 2016			December 31, 2015
Intangible asset associated with benefit under the MSA	Indefinite	$	107,511		$	107,511

Trademark - Douglas Elliman	Indefinite	80,000			80,000

Favorable leases	1 - 10	13,444			13,444
Other intangibles	1 - 5	5,816			5,691
		19,260			19,135
Less: Accumulated amortization on amortizable intangibles		(15,668		)	(13,478		)
Other intangibles, net		$	3,592		$	5,657

Contract liabilities assumed:

Unfavorable leases	1 - 10	$	4,022		$	4,022
Less: Accumulated amortization on amortizable intangibles		(2,204		)	(1,591		)
Unfavorable leases, net		$	1,818		$	2,431

Schedule of intangible asset and contract liabilities assumed

Other intangible assets and contract liabilities assumed were as follows:



	Useful Lives in Years	December 31, 2016			December 31, 2015
Intangible asset associated with benefit under the MSA	Indefinite	$	107,511		$	107,511

Trademark - Douglas Elliman	Indefinite	80,000			80,000

Favorable leases	1 - 10	13,444			13,444
Other intangibles	1 - 5	5,816			5,691
		19,260			19,135
Less: Accumulated amortization on amortizable intangibles		(15,668		)	(13,478		)
Other intangibles, net		$	3,592		$	5,657

Contract liabilities assumed:

Unfavorable leases	1 - 10	$	4,022		$	4,022
Less: Accumulated amortization on amortizable intangibles		(2,204		)	(1,591		)
Unfavorable leases, net		$	1,818		$	2,431

Notes Payable, Long-Term Debt and Other Obligations (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Notes payable, long-term debt and other obligations

Notes payable, long-term debt and other obligations consist of:



	December 31, 2016			December 31, 2015
Vector:
7.75% Senior Secured Notes due 2021, including premium of $13,954 and $8,014	$	848,954		$	608,014
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $71,247 and $86,136*	187,503			172,614
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $108,480 and $132,119*	121,520			97,881
Liggett:
Revolving credit facility	37,163			3,213
Term loan under credit facility	2,999			3,269
Equipment loans	4,519			9,716
Other	591			461
Total notes payable, long-term debt and other obligations	1,203,249			895,168
Less:
Debt issuance costs	(30,798		)	(30,141		)
Total notes payable, long-term debt and other obligations	1,172,451			865,027
Less:
Current maturities	(39,508		)	(8,919		)
Amount due after one year	$	1,132,943		$	856,108

_____________________________

Schedule of non-cash interest expense



	Year Ended December 31,
	2016		2015		2014
6.75% note	$	—	$	—	$	6,097
6.75% exchange notes	—		—		13,570
7.5% convertible notes	14,294		8,777		5,553
5.5% convertible notes	11,438		9,752		6,851
Interest expense associated with embedded derivatives	$	25,732	$	18,529	$	32,071

A summary of non-cash changes in fair value of derivatives embedded within convertible debt is as follows:



	Year Ended December 31,
	2016		2015			2014
6.75% note	$	—	$	(5	)	$	3,212
6.75% exchange notes	—		—			8,990
7.5% convertible notes	19,184		15,555			5,296
5.5% convertible notes	12,526		8,905			1,911
Gain on changes in fair value of derivatives embedded within convertible debt	$	31,710	$	24,455		$	19,409

Schedule of convertible debt

The following table reconciles unamortized debt discount within convertible debt:



	6.75% Note			6.75% Exchange Notes			7.5% Convertible Notes			5.5% Convertible Notes			Total
Balance at January 1, 2014	$	19,312		$	25,945		$	155,818		$	—		$	201,075
Conversion of $107,530 of 6.75% Variable Interest Senior Convertible Exchange Notes due November 15, 2014	—			(3,989		)	—			—			(3,989		)
Conversion of $25,000 of 6.75% Variable Interest Senior Convertible Note due February 15, 2015	(7,898		)	—			—			—			(7,898		)
Issuance of convertible notes - embedded derivative	—			—			—			82,775			82,775
Issuance of convertible notes - beneficial conversion feature	—			—			—			24,974			24,974
Amortization of embedded derivatives	(6,097		)	(13,570		)	(5,553		)	(6,851		)	(32,071		)
Amortization of beneficial conversion feature	(5,317		)	(8,386		)	(3,631		)	(2,067		)	(19,401		)
Balance at December 31, 2014	—			—			146,634			98,831			245,465
Amortization of embedded derivatives	—			—			(8,777		)	(9,752		)	(18,529		)
Amortization of beneficial conversion feature	—			—			(5,738		)	(2,943		)	(8,681		)
Balance at December 31, 2015	—			—			132,119			86,136			218,255
Amortization of embedded derivatives	—			—			(14,294		)	(11,438		)	(25,732		)
Amortization of beneficial conversion feature	—			—			(9,345		)	(3,451		)	(12,796		)
Balance at December 31, 2016	$	—		$	—		$	108,480		$	71,247		$	179,727

The following table reconciles the fair value of derivatives embedded within convertible debt:



	6.75% Note			6.75% Exchange Notes			7.5% Convertible Notes			5.5% Convertible Notes			Total
Balance at January 1, 2014	$	6,607		$	12,521		$	92,934		$	—		$	112,062
Issuance of 5.5% Note	—			—			—			82,775			82,775
Conversion of $25,000 of 6.75% Variable Interest Senior Convertible Note due February 15, 2015	(2,511		)	—			—			—			(2,511		)
Conversion of $107,530 of 6.75% Variable Interest Senior Convertible Exchange Notes due November 15, 2014	—			(3,531		)	—			—			(3,531		)
Gain from changes in fair value of embedded derivatives	(3,212		)	(8,990		)	(5,296		)	(1,911		)	(19,409		)
Balance at December 31, 2014	884			—			87,638			80,864			169,386
Conversion of $25,000 of 6.75% Variable Interest Senior Convertible Note due February 15, 2015	(889		)	—			—			—			(889		)
Loss (gain) from changes in fair value of embedded derivatives	5			—			(15,555		)	(8,905		)	(24,455		)
Balance at December 31, 2015	—			—			72,083			71,959			144,042
Gain from changes in fair value of embedded derivatives	—			—			(19,184		)	(12,526		)	(31,710		)
Balance at December 31, 2016	$	—		$	—		$	52,899		$	59,433		$	112,332



	Year Ended December 31,
	2016		2015		2014
Amortization of beneficial conversion feature:
6.75% note	$	—	$	—	$	5,317
6.75% exchange notes	—		—		8,386
7.5% convertible notes	9,345		5,738		3,631
5.5% convertible notes	3,451		2,943		2,067
Interest expense associated with beneficial conversion feature	$	12,796	$	8,681	$	19,401

Schedule of fair value of notes payable and long-term debt

The estimated fair value of the Company’s notes payable and long-term debt are as follows:



	December 31, 2016					December 31, 2015
	Carrying Value			Fair Value		Carrying Value			Fair Value
Notes payable and long-term debt	$	1,203,249	⁽¹⁾	$	1,570,732	$	895,168	⁽¹⁾	$	1,297,875

__________

⁽¹⁾The carrying value does not include the carrying value of the embedded derivative. See Note 18.

Schedule of scheduled maturities

Scheduled maturities of long-term debt are as follows:



	Principal		Unamortized Discount/ (Premium)			Net
Year Ending December 31:
2017	$	39,509	$	—		$	39,509
2018	2,099		—			2,099
2019	231,261		108,479			122,782
2020	261,151		71,247			189,904
2021	835,001		(13,954		)	848,955
Thereafter	—		—			—
Total	$	1,369,021	$	165,772		$	1,203,249

Commitments (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of aggregate minimum rentals under operating leases with non-cancelable terms

The aggregate minimum rentals under operating leases with non-cancelable terms of one year or more as of December 31, 2016 are as follows:



	Lease Commitments
Year Ending December 31:
2017	$	24,952
2018	22,068
2019	21,786
2020	18,656
2021	15,213
Thereafter	101,138
Total	$	203,813

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Schedule of Defined Benefit Plans Disclosures

The following table provides a reconciliation of benefit obligations, plan assets and the funded status of the pension plans and other postretirement benefits:



	Pension Benefits						Other Postretirement Benefits
	2016			2015			2016			2015
Change in benefit obligation:
Benefit obligation at January 1	$	(133,506	)	$	(150,199	)	$	(8,434	)	$	(9,031	)
Service cost	(547		)	(532		)	(5		)	(8		)
Interest cost	(5,419		)	(4,992		)	(385		)	(371		)
Plan settlement	—			17,047			—			—
Special termination benefits	—			(3,831		)	—			—
Benefits paid	9,596			9,879			695			522
Expenses paid	309			490			—			—
Actuarial (gain) loss	(3,154		)	(1,368		)	(553		)	454
Benefit obligation at December 31	$	(132,721	)	$	(133,506	)	$	(8,682	)	$	(8,434	)
Change in plan assets:
Fair value of plan assets at January 1	$	106,620		$	134,017		$	—		$	—
Actual return on plan assets	6,720			(327		)	—			—
Plan settlement	—			(17,047		)	—			—
Expenses paid	(309		)	(490		)	—			—
Contributions	346			346			695			522
Benefits paid	(9,596		)	(9,879		)	(695		)	(522		)
Fair value of plan assets at December 31	$	103,781		$	106,620		$	—		$	—
Unfunded status at December 31	$	(28,940	)	$	(26,886	)	$	(8,682	)	$	(8,434	)
Amounts recognized in the consolidated balance sheets:
Prepaid pension costs	$	22,273		$	20,650		$	—		$	—
Other accrued liabilities	(316		)	(320		)	(621		)	(595		)
Non-current employee benefit liabilities	(50,897		)	(47,216		)	(8,061		)	(7,839		)
Net amounts recognized	$	(28,940	)	$	(26,886	)	$	(8,682	)	$	(8,434	)

Schedule of Net Benefit Costs



	Pension Benefits									Other Postretirement Benefits
	2016			2015			2014			2016			2015			2014
Service cost — benefits earned during the period	$	547		$	532		$	523		$	5		$	8		$	9
Interest cost on projected benefit obligation	5,419			4,992			6,196			385			371			430
Expected return on assets	(6,076		)	(7,378		)	(8,518		)	—			—			—
Settlement loss	—			3,214			—			—			—			—
Special termination benefit recognized	—			3,831			—			—			—			—
Amortization of net loss (gain)	1,855			1,083			1,075			(75		)	(97		)	(60		)
Net expense (income)	$	1,745		$	6,274		$	(724	)	$	315		$	282		$	379

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

The following table summarizes amounts in accumulated other comprehensive loss (gain) that are expected to be recognized as components of net periodic benefit cost for the year ending 2017.



	Defined Benefit Pension Plans		Post- Retirement Plans			Total
Actuarial loss (gain)	$	2,009	$	(54	)	$	1,955

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

As of December 31, 2016, accumulated other comprehensive (loss) income, before income taxes, consists of the following:



	Defined Benefit Pension Plans			Post- Retirement Plans			Total
Accumulated other comprehensive (loss) income as of January 1, 2016	$	(35,258	)	$	939		$	(34,319	)
Amortization of gain (loss)	1,855			(75		)	1,780
Net loss arising during the year	(2,511		)	(553		)	(3,064		)
Accumulated other comprehensive (loss) income as of December 31, 2016	$	(35,914	)	$	311		$	(35,603	)

As of December 31, 2015, accumulated other comprehensive (loss) income, before income taxes, consisted of the following:



	Defined Benefit Pension Plans			Post- Retirement Plans			Total
Accumulated other comprehensive (loss) income as of January 1, 2015	$	(30,481	)	$	582		$	(29,899	)
Amortization of gain (loss)	4,297			(97		)	4,200
Net (loss) gain arising during the year	(9,074		)	454			(8,620		)
Accumulated other comprehensive (loss) income as of December 31, 2015	$	(35,258	)	$	939		$	(34,319	)

Schedule of Assumptions Used



	Pension Benefits			Other Postretirement Benefits
	2016	2015	2014	2016	2015	2014
Weighted average assumptions:
Discount rates — benefit obligation	3.60% - 4.20%	3.75% - 4.50%	2.75% - 4.00%	4.40%	4.75%	4.25%
Discount rates — service cost	3.75% - 4.50%	2.75% - 4.25%	3.00% - 4.75%	4.75%	4.25%	5.00%
Assumed rates of return on invested assets	6.00%	6.00%	6.50%	—%	—%	—%
Salary increase assumptions	N/A	N/A	N/A	3.00%	3.00%	3.00%

Schedule of Allocation of Plan Assets

Vector’s defined benefit retirement plan allocations at December 31, 2016 and 2015, by asset category, were as follows:



	Plan Assets at December 31,
	2016		2015
Asset category:
Equity securities	54	%	51	%
Investment grade fixed income securities	30	%	30	%
High yield fixed income securities	10	%	11	%
Alternative investments	2	%	3	%
Short-term investments	4	%	5	%
Total	100	%	100	%

The defined benefit plans’ recurring financial assets subject to fair value measurements and the necessary disclosures are as follows:



	Fair Value Measurements as of December 31, 2016
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Insurance contracts	$	1,765	$	—	$	1,765	$	—
Amounts in individually managed investment accounts:
Cash	4,302		4,302		—		—
U.S. equity securities	8,298		8,298		—		—
Common collective trusts	76,969		—		76,969		—
Investment partnership	12,447		—		10,457		1,990
Total	$	103,781	$	12,600	$	89,191	$	1,990



	Fair Value Measurements as of December 31, 2015
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Insurance contracts	$	1,760	$	—	$	1,760	$	—
Amounts in individually managed investment accounts:
Cash, mutual funds and common stock	5,429		5,429		—		—
U.S. equity securities	28,434		28,434		—		—
Common collective trusts	56,327		—		56,327		—
Investment partnership	14,670		—		11,256		3,414
Total	$	106,620	$	33,863	$	69,343	$	3,414

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

The changes in the fair value of the Level 3 investments as of December 31, 2016 and 2015 were as follows:



	2016			2015
Balance as of January 1	$	3,414		$	6,824
Distributions	(1,648		)	(2,904		)
Unrealized gain (loss) on long-term investments	16			(470		)
Realized gain (loss) on long-term investments	208			(36		)
Balance as of December 31	$	1,990		$	3,414

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A 1% change in assumed health care cost trend rates would have the following effects:



	1% Increase		1% Decrease
Effect on total of service and interest cost components	$	4	$	(4	)
Effect on benefit obligation	71		(67		)

Schedule of Expected Benefit Payments

Estimated future pension and postretirement medical benefits payments are as follows:



	Pension		Postretirement Medical
2017	$	9,187	$	621
2018	8,715		641
2019	8,210		637
2020	14,838		622
2021	7,225		618
2022 - 2026	80,902		3,015

Restructuring (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Schedule of amounts expensed for restructuring

The following table summarizes amounts expensed for the years ended December 31, 2016 and 2015:



	Amounts expensed through Year Ended December 31,
	2016		2015
Cash Charges:
Employee severance and benefits	$	—	$	1,094
Lease termination costs	41		203
Other restructuring expenses	—		68
	41		1,365
Non-Cash:
Employee pension benefits	—		5,438
Point of sale inventory impairment	—		454
	—		5,892

Total restructuring	$	41	$	7,257

Schedule of activity for restructuring

The following table presents the activity under the Tobacco segment restructuring plan for the years ended December 31, 2016 and 2015:



	Employee Severance and Benefits			Contract Termination/Exit Costs			Other			Non-Cash Pension Expense			Non-Cash Asset Impairment			Total
Accrual balance as of January 1, 2015	$	—		$	—		$	—		$	—		$	—		$	—
Restructuring charges	1,094			203			68			5,438			454			7,257
Utilized	(672		)	(155		)	(48		)	(5,438		)	(454		)	(6,767		)
Accrual balance as of December 31, 2015	422			48			20			—			—			490
Restructuring charges	—			41			—			—			—			41
Utilized	(422		)	(89		)	(20		)	—			—			(531		)
Accrual balance as of December 31, 2016	$	—		$	—		$	—		$	—		$	—		$	—

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The amounts provided for income taxes are as follows:



	Year Ended December 31,
	2016		2015			2014
Current:
U.S. Federal	$	29,185	$	40,542		$	8,809
State	7,407		13,886			2,416
	$	36,592	$	54,428		$	11,225
Deferred:
U.S. Federal	$	10,076	$	(9,943	)	$	16,484
State	2,495		(3,252		)	5,456
	12,571		(13,195		)	21,940
Total	$	49,163	$	41,233		$	33,165

Schedule of Deferred Tax Assets and Liabilities

The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and liabilities are as follows:



	December 31, 2016			December 31, 2015
Deferred tax assets:
Employee benefit accruals	$	17,335		$	16,201
Impairment of investments	1,534			4,332
Impact of timing of settlement payments	28,266			39,840
Various U.S. state tax loss carryforwards	6,551			6,713
Other	2,803			—
	56,489			67,086
Less: Valuation allowance	(4,439		)	(3,900		)
Net deferred tax assets	$	52,050		$	63,186

Deferred tax liabilities:
Excess of tax basis over book-basis non-consolidated entities	$	(7,494	)	$	(7,292	)
Book/tax differences on fixed and Intangible assets	(54,776		)	(52,598		)
Capitalized interest expense	(8,673		)	(4,080		)
Book/tax differences on inventory	(16,143		)	(16,891		)
Book/tax differences on long-term investments	(23,937		)	(29,701		)
Impact of accounting for convertible debt	(27,362		)	(30,494		)
Book/tax differences on available for sale securities	(6,750		)	—
Other	—			(1,559		)
	$	(145,135	)	$	(142,615	)

Net deferred tax liabilities	$	(93,085	)	$	(79,429	)

Schedule of Effective Income Tax Rate Reconciliation

Differences between the amounts provided for income taxes and amounts computed at the federal statutory tax rate are summarized as follows:



	Year Ended December 31,
	2016			2015			2014
Income before income taxes	$	126,429		$	107,705		$	82,279
Federal income tax expense at statutory rate	44,250			37,697			28,798
Increases (decreases) resulting from:
State income taxes, net of federal income tax benefits	6,991			6,862			4,804
Impact of non-controlling interest	(2,148		)	(2,516		)	(4,290		)
Non-deductible expenses	2,569			2,941			2,581
Impact of domestic production deduction	(2,603		)	(3,436		)	(248		)
Tax credits	(359		)	(265		)	(275		)
Other	(1,202		)	152			—
Inclusion of tax liabilities from unincorporated entities	1,126			831			1,374
Changes in valuation allowance, net of equity and tax audit adjustments	539			(1,033		)	421
Income tax expense	$	49,163		$	41,233		$	33,165

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits:



Balance at January 1, 2014	$	3,122
Additions based on tax positions related to prior years	318
Settlements	(442		)
Expirations of the statute of limitations	(1,254		)
Balance at December 31, 2014	1,744
Additions based on tax positions related to prior years	265
Settlements	(132		)
Expirations of the statute of limitations	(354		)
Balance at December 31, 2015	1,523
Additions based on tax positions related to prior years	72
Settlements	(119		)
Expirations of the statute of limitations	(961		)
Balance at December 31, 2016	$	515

Stock Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The assumptions used for grants in the years ended December 31, 2016, 2015 and 2014 were as follows:



	2016		2015		2014
Risk-free interest rate	1.5% -1.7%		1.8% -2.0%		1.1% -2.6%
Expected volatility	16.49% - 18.13%		22.18% - 22.25%		18.51% - 22.37%
Dividend yield	0.0	%	0.0	%	0.0	%
Expected holding period	7.00 – 10.00 years		7.00 – 10.00 years		4.00 – 10.00 years
Weighted-average grant date fair value (1)	$5.09 - $6.88		$6.47 - $8.07		$3.28 - $7.32

(1) Per share amounts have not been adjusted to give effect to the stock dividends in 2016, 2015 and 2014.

Schedule of Share-based Compensation, Stock Options, Activity

A summary of employee stock option transactions follows:



	Number of Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value(1)
Outstanding on January 1, 2014	3,643,316		$	11.41	6.5	$	9,959
Granted	448,580		$	16.97
Exercised	(464,877	)	$	10.87
Canceled	(13	)	$	—
Outstanding on December 31, 2014	3,627,006		$	12.16	6.4	$	25,977
Granted	427,219		$	20.95
Exercised	(121,308	)	$	11.45
Canceled	(5	)	$	—
Outstanding on December 31, 2015	3,932,912		$	13.16	5.9	$	36,612
Granted	406,875		$	22.13
Exercised	(33,501	)	$	11.87
Canceled	(6	)	$	—
Outstanding on December 31, 2016	4,306,280		$	14.02	5.3	$	37,557
Options exercisable at:
December 31, 2014	1,678,829
December 31, 2015	2,137,112
December 31, 2016	2,111,985

_____________________________


(1)	The aggregate intrinsic value represents the amount by which the fair value of the underlying common stock ($22.74, $22.47 and $19.33 at December 31, 2016, 2015 and 2014, respectively) exceeds the option exercise price.

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range

Additional information relating to options outstanding at December 31, 2016 follows:



			Options Outstanding				Options Exercisable
Range of Exercise Prices			Outstanding as of	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Exercisable as of	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Aggregate Intrinsic Value
Range of Exercise Prices			12/31/2016	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		12/31/2016	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Aggregate Intrinsic Value
$8.85	-	$11.07	1,575,948	2.9	$	10.02	1,575,948	2.9	$	10.02	$	—
$11.07	-	$13.28	1,447,663	5.4	$	13.13	536,037	4.0	$	12.88	—
$13.28	-	$15.49	—	—	$	—	—	—	$	—	—
$15.49	-	$17.70	448,577	7.4	$	16.98	—	—	$	—	—
$17.70	-	$19.92	—	—	$	—	—	—	$	—	—
$19.92	-	$22.13	834,092	8.6	$	21.53	—	—	$	—	—
			4,306,280	5.3	$	14.02	2,111,985	3.2	$	10.81	$	25,331

Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of contingencies

The activity in the Company’s accruals for the MSA and tobacco litigation for the three years ended December 31, 2016 were as follows:



	Current Liabilities									Non-Current Liabilities
	Payments due under Master Settlement Agreement			Litigation Accruals			Total			Payments due under Master Settlement Agreement			Litigation Accruals			Total

Balance at January 1, 2014	$	25,348		$	59,310		$	84,658		$	27,571		$	27,058		$	54,629
Expenses	118,069			2,849			120,918			—			—			—
NPM Settlement adjustment	—			—			—			(1,419		)	—			(1,419		)
Change in MSA obligations capitalized as inventory	(1,095		)	—			(1,095		)	—			—			—
Payments	(116,343		)	(62,878		)	(179,221		)	—			—			—
Reclassification from non-current liabilities	343			3,575			3,918			(343		)	(3,575		)	(3,918		)
Interest on withholding	—			293			293			—			2,217			2,217
Balance as of December 31, 2014	26,322			3,149			29,471			25,809			25,700			51,509
Expenses	118,284			20,644			138,928			—			(195		)	(195		)
NPM Settlement adjustment	1,351			—			1,351			(5,715		)	—			(5,715		)
Change in MSA obligations capitalized as inventory	1,426			—			1,426						—			—
Payments	(118,142		)	(5,869		)	(124,011		)	—			—			—
Reclassification from non-current liabilities	—			3,305			3,305			—			(3,305		)	(3,305		)
Interest on withholding	—			1,675			1,675			—			2,518			2,518
Balance as of December 31, 2015	29,241			22,904			52,145			20,094			24,718			44,812
Expenses	110,486			16,679			127,165			—			3,650			3,650
Change in MSA obligations capitalized as inventory	1,568			—			1,568			—			—			—
Payments	(122,977		)	(39,682		)	(162,659		)	—			—			—
Reclassification from non-current liabilities	(2,163		)	3,252			1,089			2,163			(3,252		)	(1,089		)
Interest on withholding	37			506			543			—			2,397			2,397
Balance as of December 31, 2016	$	16,192		$	3,659		$	19,851		$	22,257		$	27,513		$	49,770

As of December 31, 2016, the following Engle progeny cases have resulted in judgments against Liggett:



Date	Case Name	County	Liggett Compensatory Damages (as adjusted)⁽¹⁾	Liggett Punitive Damages	Status ⁽²⁾
June 2002	Lukacs v. R.J. Reynolds	Miami-Dade	$12,418	$—	Liggett satisfied the judgment and the case is concluded.
August 2009	Campbell v. R.J. Reynolds	Escambia	156	—	Liggett satisfied the judgment and the case is concluded.
March 2010	Douglas v. R.J. Reynolds	Hillsborough	1,350	—	Liggett satisfied the judgment and the case is concluded.
April 2010	Clay v. R.J. Reynolds	Escambia	349	1,000	Liggett satisfied the judgment and the case is concluded.
April 2010	Putney v. R.J. Reynolds	Broward	17	—	On June 12, 2013, the Fourth District Court of Appeal reversed and remanded the case for further proceedings regarding the amount of the award. Both sides sought discretionary review from the Florida Supreme Court. In February 2016, the Florida Supreme Court reinstated the jury's verdict. The defendants moved for clarification of that order. The court clarified that it reversed the district court's decision regarding the statute of repose only, leaving the remaining portions of the decision intact, which, among other things, reversed an approximately $3,000 compensatory award against Liggett. The case was remanded to the trial court for proceedings consistent with those portions of the district court's decision that were not reversed. A hearing is scheduled on March 14, 2017.
April 2011	Tullo v. R.J. Reynolds	Palm Beach	225	—	Liggett satisfied the judgment and the case is concluded.
January 2012	Ward v. R.J. Reynolds	Escambia	1	—	Liggett satisfied the merits judgment. Subsequently, the trial court entered a joint and several final judgment on attorneys' fees and costs for $981 and defendants appealed that judgment. Briefing is underway.
May 2012	Calloway v. R.J. Reynolds	Broward	—	—	A joint and several judgment for $16,100 was entered against R.J. Reynolds, Philip Morris, Lorillard and Liggett. On January 6, 2016, the Fourth District Court of Appeal reversed in part, including the $7,600 punitive damages award against Liggett, and remanded the case to the trial court for a new trial on certain issues. Both sides moved for rehearing and in September 2016, the appellate court reversed the judgment in its entirety and remanded the case for a new trial. As a result, the $1,530 compensatory award against Liggett was reversed. The plaintiff filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court.
					Any potential liability as a result of the pending appeal is included in the amount Liggett will pay under Engle Progeny Settlement II.
December 2012	Buchanan v. R.J. Reynolds	Leon	2,750	—	Liggett satisfied the judgment and the case is concluded.
May 2013	D. Cohen v. R.J. Reynolds	Palm Beach	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
August 2013	Rizzuto v. R.J. Reynolds	Hernando	3,479	—	Liggett settled its portion of the judgment for $1,500 and the case is concluded as to Liggett.
August 2014	Irimi v. R.J. Reynolds	Broward	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
October 2014	Lambert v. R.J. Reynolds	Pinellas	3,600	9,500	Liggett satisfied the judgment and the case is concluded.
November 2014	Boatright v. R.J. Reynolds	Polk	—	300	In November 2014, the jury awarded compensatory damages in the amount of $15,000 with 15% fault apportioned to plaintiff and 85% to Philip Morris. The jury further assessed punitive damages against Philip Morris for $19,700 and Liggett for $300. Post trial motions were denied. A joint and several judgment was entered in the amount of $12,750 on the compensatory damages. Judgment was further entered against Liggett for $300 in punitive damages. Defendants appealed and plaintiff cross-appealed. Oral argument occurred on October 18, 2016. A decision is pending.
					Any potential liability as a result of the pending appeal is included in the amount Liggett will pay under Engle Progeny Settlement II.
June 2015	Caprio v. R.J. Reynolds	Broward	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
Total Damages Awarded:			24,345	10,800
Amounts accrued, paid or compromised:			(24,328)	(10,800)
Damages remaining on Appeal:			$17	$0
(1) Compensatory damages are adjusted to reflect the jury's allocation of comparative fault and only include Liggett's jury allocated share, regardless of whether a judgment was joint and several. The amounts listed above do not include attorneys' fees or statutory interest.
(2) See Exhibit 99.1 for a more complete description of the cases currently on appeal.

The following table lists the number of Individual Actions by state:



State		Number of Cases
Maryland		16
Florida		7
New York		6
Louisiana		2
West Virginia		2
Missouri		1
Ohio		1

Supplemental Cash Flow Elements [Abstract]

Tabular disclosure of the loss contingencies that were reported in the period or disclosed as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14472-108349

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12021-110248

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14453-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12053-110248

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14394-108349

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14435-108349

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14326-108349

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14557-108349

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14615-108349

+ Details

Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Supplemental Cash Flow Information



	Year Ended December 31,
	2016		2015		2014
Cash paid during the period for:
Interest	$	108,422	$	96,958	$	98,754
Income taxes	46,811		52,040		16,610
Non-cash investing and financing activities:
Issuance of stock dividend	609		584		520
Non-controlling interest	—		—		2,733
Debt retired in conversion to stock	—		25,000		132,530
Embedded derivative, net retired in conversion to stock	—		889		6,680

Investments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Company's recurring financial assets and liabilities subject to fair value measurements

The Company’s financial assets and liabilities subject to fair value measurements were as follows:



	Fair Value Measurements as of December 31, 2016
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Assets:
Money market funds ⁽¹⁾	$	248,552	$	248,552	$	—	$	—

Commercial paper⁽¹⁾	41,247		—		41,247		—

Certificates of deposit ⁽²⁾	2,982		—		2,982		—

Bonds ⁽²⁾	4,240		4,240		—		—

Investment securities available for sale
Equity securities	50,843		50,843		—		—
Mutual funds invested in fixed income securities	20,582		20,582		—		—
Fixed income securities
U.S. government securities	30,642		—		30,642		—
Corporate securities	36,687		—		36,687		—
U.S. government and federal agency	6,500		—		6,500		—
Commercial mortgage-backed securities	1,398		—		1,398		—
Commercial paper	8,980		—		8,980		—
Index-linked U.S. bonds	770		—		770		—
Foreign fixed-income securities	501		—		501		—
Total fixed income securities	85,478		—		85,478		—

Total investment securities available for sale	156,903		71,425		85,478		—

Total	$	453,924	$	324,217	$	129,707	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	112,332	$	—	$	—	$	112,332


Nonrecurring fair value measurements
Long-term investments ⁽³⁾	$	6,396					$	6,396	$	(1,203	)
	$	6,396					$	6,396	$	(1,203	)


(1)	Amounts included in cash and cash equivalents on the condensed consolidated balance sheet.


(2)	Amounts included in current restricted assets and restricted assets on the condensed consolidated balance sheet.


(3)	Long-term investments with a carrying amount of $7,599 were written down to their fair value of $6,396, resulting in an impairment charge of $1,203, which was included in earnings.



	Fair Value Measurements as of December 31, 2015
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds⁽¹⁾	$	93,915	$	93,915	$	—	$	—

Certificates of deposit ⁽²⁾	3,469		—		3,469		—

Bonds ⁽²⁾	12,767		12,767		—		—

Investment securities available for sale
Equity securities	67,273		67,273		—		—
Mutual funds invested in fixed income securities	20,111		20,111		—		—
Fixed income securities
U.S. government securities	28,132		—		28,132		—
Corporate securities	41,561		—		41,561		—
U.S. government and agency	5,790		—		5,790		—
Commercial mortgage-backed securities	8,728		—		8,728		—
U.S. asset-backed securities	8,276		—		8,276		—
Index-linked U.S. bonds	2,105		—		2,105		—
Total fixed income securities	94,592		—		94,592		—

Total investment securities available for sale	181,976		87,384		94,592		—

Total	$	292,127	$	194,066	$	98,061	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	144,042	$	—	$	—	$	144,042


Nonrecurring fair value measurements
Long-term investments ⁽³⁾	$	11,189					$	11,189	$	(811	)
Real estate held for sale ⁽⁴⁾	3,780						3,780		(230		)
	$	14,969					$	14,969	$	(1,041	)


(1)	Amounts included in cash and cash equivalents on the condensed consolidated balance sheet.


(2)	Amounts included in current restricted assets and restricted assets on the condensed consolidated balance sheet.


(3)	Long-term investments with a carrying amount of $12,000 were written down to their fair value of $11,189, resulting in an impairment charge of $811, which was included in earnings.


(4)	Real estate with a carrying value of $4,010 was written down to its fair value of $3,780, resulting in an impairment charge of $230, which was included in earnings.

Unobservable inputs related to the valuations of the Level 3 assets

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2016:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2016		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	112,332	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	22.74
				Convertible trading price (as a percentage of par value)	114.69		%
				Volatility	19.47		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	4.5% - 5.5% (5.0%)

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2015:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2015		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	144,042	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	23.59
				Convertible trading price (of par)	114.3		%
				Volatility	18.30		%
				Implied credit spread	5.0% - 5.5% (5.25%)

Unobservable inputs related to the valuations of the Level 3 liabilities

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2016:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2016		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	112,332	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	22.74
				Convertible trading price (as a percentage of par value)	114.69		%
				Volatility	19.47		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	4.5% - 5.5% (5.0%)

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2015:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2015		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	144,042	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	23.59
				Convertible trading price (of par)	114.3		%
				Volatility	18.30		%
				Implied credit spread	5.0% - 5.5% (5.25%)

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

Financial information for the Company’s operations before taxes and non-controlling interests

Segment Information (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Financial information for the Company’s operations before taxes and non-controlling interests for the years ended December 31, 2016, 2015 and 2014 follows:



							Real			Corporate
	Tobacco			E-Cigarettes			Estate			and Other					Total

2016
Revenues	$	1,011,620		$	(776	)	$	680,105		$	—				$	1,690,949
Operating income (loss)	238,293		(1)	(1,403		)	23,001			(26,894		)			232,997
Equity in earnings from real estate ventures	—			—			5,200			—					5,200
Identifiable assets	328,349			68			573,350		(4)	502,268			(5)	(6)	1,404,035
Depreciation and amortization	10,224			—			10,485			1,650					22,359
Capital expenditures	6,445			—			20,160			86					26,691

2015
Revenues	$	1,017,761		$	(1,970	)	$	641,406		$	—				$	1,657,197
Operating income (loss)	209,393		(2)	(13,037		)	24,087			(20,523		)			199,920
Equity in earnings from real estate ventures	—			—			2,001			—					2,001
Identifiable assets	344,033			985			585,098		(4)	350,499			(5)	(6)	1,280,615
Depreciation and amortization	11,323			—			12,589			1,742					25,654
Capital expenditures	3,730			—			7,247			—					10,977

2014
Revenues	$	1,021,259		$	8,589		$	561,467		$	—				$	1,591,315
Operating income (loss)	199,119		(3)	(13,124		)	42,354			(15,911		)			212,438
Equity in earnings from real estate ventures	—			—			4,103			—					4,103
Identifiable assets	325,870			8,139			498,058		(4)	556,975			(5)	(6)	1,389,042
Depreciation and amortization	10,885			—			12,204			1,410					24,499
Capital expenditures	9,256			—			6,923			7,225					23,404

_____________________________


⁽¹⁾	Operating income includes $247 of expense from MSA Settlement, $20,000 of litigation judgment expense, and $41 of restructuring expense.


⁽²⁾	Operating income includes $4,364 of income from MSA Settlement, $20,072 of litigation settlement and judgment expense, $7,257 of restructuring expense, and $1,607 of pension settlement expense.


⁽³⁾	Operating income includes $1,419 of income from NPM Settlement and $2,475 of litigation settlement charges and judgment expense.


⁽⁴⁾	Includes real estate investments accounted for under the equity method of accounting of $221,258, $217,168 and $163,460 as of December 31, 2016, 2015 and 2014, respectively.

⁽⁵⁾


⁽⁶⁾	Includes long-term investments accounted for under the equity method of accounting of $17,721, $21,495 and $20,484 as of December 31, 2016, 2015 and 2014, respectively.

Quarterly Financial Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

Unaudited quarterly data for the years ended December 31, 2016 and 2015 are as follows:



	December 31,		September 30,		June 30,		March 31,
	2016		2016		2016		2016
Revenues	$	412,772	$	459,104	$	438,273	$	380,800
Gross Profit	138,923		155,662		154,642		144,378
Operating income	30,754		69,364		70,720		62,159
Net income applicable to common shares attributed to Vector Group Ltd.	$	4,599	$	23,175	$	24,015	$	19,338
Per basic common share (1):
Net income applicable to common shares attributed to Vector Group Ltd.	$	0.04	$	0.18	$	0.19	$	0.15
Per diluted common share (1):
Net income applicable to common shares attributed to Vector Group Ltd.	$	0.04	$	0.18	$	0.19	$	0.15

_____________________________


(1)	Per share computations include the impact of a 5% stock dividend paid on September 29, 2016. Quarterly basic and diluted net income per common share were computed independently for each quarter and do not necessarily total to the year to date basic and diluted net income per common share.



	December 31,		September 30,		June 30,		March 31,
	2015		2015		2015		2015
Revenues	$	430,330	$	449,934	$	416,173	$	360,760
Gross Profit	137,742		154,017		136,969		118,742
Operating income	31,032		69,367		55,803		43,718
Net income applicable to common shares attributed to Vector Group Ltd.	$	7,904	$	12,466	$	17,607	$	21,221
Per basic common share (1):
Net income applicable to common shares attributed to Vector Group Ltd.	$	0.06	$	0.10	$	0.14	$	0.17
Per diluted common share (1):
Net income applicable to common shares attributed to Vector Group Ltd.	$	0.06	$	0.10	$	0.14	$	0.17

_____________________________


(1)	Per share computations include the impact of a 5% stock dividend paid on September 29, 2015. Quarterly basic and diluted net income per common share were computed independently for each quarter and do not necessarily total to the year to date basic and diluted net income per common share.

Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS



				December 31, 2016
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	279,815		$	14,798	$	98,917	$	—		$	393,530
Investment securities available for sale	121,016			35,887		—		—			156,903
Accounts receivable - trade, net	—			11,775		7,026		—			18,801
Intercompany receivables	22,789			—		—		(22,789		)	—
Inventories	—			89,834		—		—			89,834
Income taxes receivable, net	18,387			—		—		(2,277		)	16,110
Restricted assets	—			6,416		914		—			7,330
Other current assets	517			4,428		18,010		—			22,955
Total current assets	442,524			163,138		124,867		(25,066		)	705,463
Property, plant and equipment, net	1,134			48,314		31,000		—			80,448
Investments in real estate, net	—			—		23,640		—			23,640
Long-term investments	52,308			388		501		—			53,197
Investments in real estate ventures	—			—		221,258		—			221,258
Investments in consolidated subsidiaries	501,659			—		—		(501,659		)	—
Restricted assets	1,728			2,258		—		—			3,986
Goodwill and other intangible assets, net	—			107,511		154,407		—			261,918
Prepaid pension costs	—			22,273		—		—			22,273
Other assets	7,534			12,118		12,200		—			31,852
Total assets	$	1,006,887		$	356,000	$	567,873	$	(526,725	)	$	1,404,035
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—		$	39,333	$	175	$	—		$	39,508
Current portion of employee benefits	—			937		—		—			937
Intercompany payables	—			24		22,765		(22,789		)	—
Income taxes payable, net	—			1,089		1,188		(2,277		)	—
Litigation accruals and current payments due under the Master Settlement Agreement	—			19,851		—		—			19,851
Other current liabilities	47,968			49,492		38,392		—			135,852
Total current liabilities	47,968			110,726		62,520		(25,066		)	196,148
Notes payable, long-term debt and other obligations, less current portion	1,127,180			5,372		391		—			1,132,943
Fair value of derivatives embedded within convertible debt	112,332			—		—		—			112,332
Non-current employee benefits	42,818			16,140		—		—			58,958
Deferred income taxes, net	7,420			40,136		45,529		—			93,085
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	1,169			49,861		12,811		—			63,841
Total liabilities	1,338,887			222,235		121,251		(25,066		)	1,657,307
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(332,000		)	133,765		367,894		(501,659		)	(332,000		)
Non-controlling interest	—			—		78,728		—			78,728
Total stockholders' (deficiency) equity	(332,000		)	133,765		446,622		(501,659		)	(253,272		)
Total liabilities and stockholders' deficiency	$	1,006,887		$	356,000	$	567,873	$	(526,725	)	$	1,404,035

CONDENSED CONSOLIDATING BALANCE SHEETS



				December 31, 2015
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	111,470		$	12,375	$	116,523	$	—		$	240,368
Investment securities available for sale	131,810			50,166		—		—			181,976
Accounts receivable - trade, net	—			15,913		7,976		—			23,889
Intercompany receivables	11,293			—		—		(11,293		)	—
Inventories	—			86,516		—		—			86,516
Income taxes receivable, net	8,213			—		—		(5,372		)	2,841
Restricted assets	—			7,781		1,414		—			9,195
Other current assets	575			3,747		34,632		—			38,954
Total current assets	263,361			176,498		160,545		(16,665		)	583,739
Property, plant and equipment, net	1,711			54,097		19,824		—			75,632
Investments in real estate, net	—			—		23,318		—			23,318
Long-term investments	61,747			478		501		—			62,726
Investments in real estate ventures	—			—		217,168		—			217,168
Investments in consolidated subsidiaries	532,501			—		—		(532,501		)	—
Restricted assets	1,713			10,590		—		—			12,303
Goodwill and other intangible assets,net	—			107,511		156,448		—			263,959
Prepaid pension costs	—			20,650		—		—			20,650
Other assets	7,582			11,769		1,769		—			21,120
Total assets	$	868,615		$	381,593	$	579,573	$	(549,166	)	$	1,280,615
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—		$	8,733	$	186	$	—		$	8,919
Current portion of employee benefits	—			915		—		—			915
Intercompany payables	—			586		10,707		(11,293		)	—
Income taxes payable, net	—			5,464		4		(5,372		)	96
Litigation accruals and current payments due under the Master Settlement Agreement	—			52,145		—		—			52,145
Other current liabilities	38,140			74,083		41,994		—			154,217
Total current liabilities	38,140			141,926		52,891		(16,665		)	216,292
Notes payable, long-term debt and other obligations, less current portion	848,368			7,519		221		—			856,108
Fair value of derivatives embedded within convertible debt	144,042			—		—		—			144,042
Non-current employee benefits	39,244			15,811		—		—			55,055
Deferred income taxes, net	2,675			33,791		42,963		—			79,429
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	2,193			44,982		4,675		—			51,850
Total liabilities	1,074,662			244,029		100,750		(16,665		)	1,402,776
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(206,047		)	137,564		394,937		(532,501		)	(206,047		)
Non-controlling interest	—			—		83,886		—			83,886
Total stockholders' (deficiency) equity	(206,047		)	137,564		478,823		(532,501		)	(122,161		)
Total liabilities and stockholders' deficiency	$	868,615		$	381,593	$	579,573	$	(549,166	)	$	1,280,615

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Year Ended December 31, 2016
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	1,011,322		$	680,105		$	(478	)	$	1,690,949
Expenses:
Cost of sales	—			672,515			424,829			—			1,097,344
Operating, selling, administrative and general expenses	36,242			72,359			232,444			(478		)	340,567
Litigation settlement and judgment expense	—			20,000			—			—			20,000
Management fee expense	—			10,649			—			(10,649		)	—
Restructuring charges	—			41			—			—			41
Operating (loss) income	(36,242		)	235,758			22,832			10,649			232,997
Other income (expenses):
Interest expense	(139,524		)	(3,438		)	(20		)	—			(142,982		)
Change in fair value of derivatives embedded within convertible debt	31,710			—			—			—			31,710
Equity in earnings from real estate ventures	—			—			5,200			—			5,200
Equity in losses from investments	(2,664		)	(90		)	—			—			(2,754		)
Gain on sale of investment securities available for sale	376			2,531			—			—			2,907
Impairment of investment securities available for sale	(609		)	(4,772		)	—			—			(5,381		)
Equity in earnings in consolidated subsidiaries	161,471			—			—			(161,471		)	—
Management fee income	10,649			—			—			(10,649		)	—
Other, net	2,780			1,013			939			—			4,732
Income before provision for income taxes	27,947			231,002			28,951			(161,471		)	126,429
Income tax benefit (expense)	43,180			(83,008		)	(9,335		)	—			(49,163		)
Net income	71,127			147,994			19,616			(161,471		)	77,266
Net income attributed to non-controlling interest	—			—			(6,139		)	—			(6,139		)
Net income attributed to Vector Group Ltd.	$	71,127		$	147,994		$	13,477		$	(161,471	)	$	71,127
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(6,139	)	$	—		$	(6,139	)
Comprehensive income attributed to Vector Group Ltd.	$	68,195		$	146,841		$	13,477		$	(160,318	)	$	68,195

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Year Ended December 31, 2015
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	1,016,279		$	641,406		$	(488	)	$	1,657,197
Expenses:
Cost of sales	—			699,440			410,287			—			1,109,727
Operating, selling, administrative and general expenses	29,237			84,437			207,035			(488		)	320,221
Litigation settlement and judgment expense	—			20,072			—			—			20,072
Management fee expense	—			10,250			—			(10,250		)	—
Restructuring charges	—			7,257			—			—			7,257
Operating (loss) income	(29,237		)	194,823			24,084			10,250			199,920
Other income (expenses):
Interest expense	(115,731		)	(4,953		)	(7		)	—			(120,691		)
Change in fair value of derivatives embedded within convertible debt	24,455			—			—			—			24,455
Equity in earnings from real estate ventures	—			—			2,001			—			2,001
Equity in losses from investments	(2,640		)	(41		)	—			—			(2,681		)
(Loss) gain on sale of investment securities available for sale	(2,037		)	13,175			—			—			11,138
Impairment of investment securities available for sale	(4,859		)	(7,987		)	—			—			(12,846		)
Equity in earnings in consolidated subsidiaries	125,042			—			—			(125,042		)	—
Management fee income	10,250			—			—			(10,250		)	—
Other, net	4,016			639			1,754			—			6,409
Income before provision for income taxes	9,259			195,656			27,832			(125,042		)	107,705
Income tax benefit (expense)	49,939			(82,282		)	(8,890		)	—			(41,233		)
Net income	59,198			113,374			18,942			(125,042		)	66,472
Net income attributed to non-controlling interest	—			—			(7,274		)	—			(7,274		)
Net income attributed to Vector Group Ltd.	$	59,198		$	113,374		$	11,668		$	(125,042	)	$	59,198
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(7,274	)	$	—		$	(7,274	)
Comprehensive income attributed to Vector Group Ltd.	$	52,228		$	105,456		$	11,668		$	(117,124	)	$	52,228

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Year Ended December 31, 2014
	Parent/ Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated Vector Group Ltd.
Revenues	$	—		$	1,030,157		$	561,467		$	(309	)	$	1,591,315
Expenses:
Cost of sales	—			743,032			354,028			—			1,097,060
Operating, selling, administrative and general expenses	24,262			90,208			165,181			(309		)	279,342
Litigation settlement and judgment expense	—			2,475			—			—			2,475
Management fee expense	—			9,870			—			(9,870		)	—
Operating (loss) income	(24,262		)	184,572			42,258			9,870			212,438
Other income (expenses):
Interest expense	(157,321		)	(4,241		)	(41		)	612			(160,991		)
Changes in fair value of derivatives embedded within convertible debt	19,409			—			—			—			19,409
Acceleration of interest expense related to debt conversion	(5,205		)	—			—			—			(5,205		)
Equity in earnings from real estate ventures	—			—			4,103			—			4,103
Loss on sale of investment securities available for sale	(11		)	—			—			—			(11		)
Equity in earnings from investments	3,122			18			—			—			3,140
Equity in earnings in consolidated subsidiaries	124,001			—			—			(124,001		)	—
Management fee income	9,870			—			—			(9,870		)	—
Other, net	4,178			1,044			4,786			(612		)	9,396
(Loss) income before provision for income taxes	(26,219		)	181,393			51,106			(124,001		)	82,279
Income tax benefit (expense)	63,064			(78,801		)	(17,428		)	—			(33,165		)
Net income	36,845			102,592			33,678			(124,001		)	49,114
Net loss attributed to non-controlling interest	—			—			(12,258		)	—			(12,258		)
Net income attributed to Vector Group Ltd.	$	36,845		$	102,592		$	21,420		$	(124,001	)	$	36,856
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(12,258	)	$	—		$	(12,258	)
Comprehensive income attributed to Vector Group Ltd.	$	34,922		$	102,536		$	21,420		$	(123,956	)	$	34,922

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Year Ended December 31, 2016
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	135,820		$	112,562		$	60,640		$	(211,386	)	$	97,636
Cash flows from investing activities:
Sale of investment securities	105,815			10,255			—			—			116,070
Maturities of investment securities	10,822			—			—			—			10,822
Purchase of investment securities	(117,211		)	—			—			—			(117,211		)
Proceeds from sale or liquidation of long-term investments	4,552			—			—			—			4,552
Purchase of long-term investments	—			—			(50		)	—			(50		)
Investments in real estate ventures	—			—			(44,107		)	—			(44,107		)
Distributions from real estate ventures	—			—			33,204			—			33,204
Increase in cash surrender value of life insurance policies	—			(484		)	—			—			(484		)
(Increase) decrease in restricted assets	(15		)	9,696			500			—			10,181
Investments in subsidiaries	(19,219		)	—			—			19,219			—
Proceeds from sale of fixed assets	—			32			13			—			45
Purchase of subsidiaries	—			—			(250		)	—			(250		)
Repayment of notes receivable	—			—			4,410			—			4,410
Capital expenditures	(86		)	(6,445		)	(20,160		)	—			(26,691		)
Investments in real estate held for sale	—			—			(245		)	—			(245		)
Pay down of investment securities	9,212			—			—			—			9,212
Net cash (used in) provided by investing activities	(6,130		)	13,054			(26,685		)	19,219			(542		)
Cash flows from financing activities:
Proceeds from issuance of debt	243,225			—			395			—			243,620
Deferred financing costs	(6,600		)	—			—			—			(6,600		)
Repayments of debt	—			(5,226		)	(139		)	—			(5,365		)
Borrowings under revolver	—			144,294			—			—			144,294
Repayments on revolver	—			(110,614		)	—			—			(110,614		)
Capital contributions received	—			2,800			16,419			(19,219		)	—
Intercompany dividends paid	—			(154,447		)	(56,939		)	211,386			—
Dividends and distributions on common stock	(198,947		)	—			—			—			(198,947		)
Distributions to non-controlling interest	—			—			(11,545		)	—			(11,545		)
Contributions from non-controlling interest	—			—			248			—			248
Proceeds from exercise of Vector options	398			—			—			—			398
Tax benefit of options exercised	579			—			—			—			579
Net cash provided by (used in) financing activities	38,655			(123,193		)	(51,561		)	192,167			56,068
Net increase (decrease) in cash and cash equivalents	168,345			2,423			(17,606		)	—			153,162
Cash and cash equivalents, beginning of year	111,470			12,375			116,523			—			240,368
Cash and cash equivalents, end of year	$	279,815		$	14,798		$	98,917		$	—		$	393,530

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Year Ended December 31, 2015
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	136,370		$	172,065		$	45,715		$	(209,671	)	$	144,479
Cash flows from investing activities:
Sale of investment securities	256,161			14,415			—			—			270,576
Maturities of investment securities	5,491			—			—			—			5,491
Purchase of investment securities	(207,822		)	(6,324		)	—			—			(214,146		)
Proceeds from sale of or liquidation of long-term investments	1,106			—			197			—			1,303
Purchase of long-term investments	(10,000		)	—			—			—			(10,000		)
Investments in real estate ventures	—			—			(70,272		)	—			(70,272		)
Distributions from real estate ventures	—			—			17,563			—			17,563
Increase in cash surrender value of life insurance policies	(1,257		)	(485		)	—			—			(1,742		)
Increase in restricted assets	(6		)	(6,883		)	—			—			(6,889		)
Issuance of notes receivable	—			—			(4,410		)	—			(4,410		)
Investments in subsidiaries	(103,174		)	—			—			103,174			—
Proceeds from sale of fixed assets	—			4			—			—			4
Repayments of notes receivable	—			—			4,000			—			4,000
Capital expenditures	—			(3,730		)	(7,247		)	—			(10,977		)
Proceeds from sale of preferred securities	—			—			1,000						1,000
Investments in real estate, net	—			—			(12,603		)	—			(12,603		)
Pay downs of investment securities	8,739			—			—			—			8,739
Net cash used in investing activities	(50,762		)	(3,003		)	(71,772		)	103,174			(22,363		)
Cash flows from financing activities:
Proceeds from issuance of debt	—			1,799			306			—			2,105
Deferred financing costs	—			(624		)	—			—			(624		)
Repayments of debt	—			(6,362		)	(322		)	—			(6,684		)
Borrowings under revolver	—			153,361			—			—			153,361
Repayments on revolver	—			(167,915		)	—			—			(167,915		)
Capital contributions received	—			33,658			69,516			(103,174		)	—
Intercompany dividends paid	—			(181,825		)	(29,343		)	211,168			—
Dividends and distributions on common stock	(188,151		)	—			—			—			(188,151		)
Distributions to non-controlling interest	—			—			(3,280		)	—			(3,280		)
Contributions from non-controlling interest	—			—			813			—			813
Proceeds from exercise of Vector options	1,441			—			—			—			1,441
Tax benefit of options exercised	821			1,497			—			(1,497		)	821
Net cash (used in) provided by financing activities	(185,889		)	(166,411		)	37,690			106,497			(208,113		)
Net (decrease) increase in cash and cash equivalents	(100,281		)	2,651			11,633			—			(85,997		)
Cash and cash equivalents, beginning of year	211,751			9,724			104,890			—			326,365
Cash and cash equivalents, end of year	$	111,470		$	12,375		$	116,523		$	—		$	240,368

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	Year Ended December 31, 2014
	Parent/ Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated Vector Group Ltd.
Net cash provided by operating activities	$	61,779		$	83,671		$	62,656		$	(100,730	)	$	107,376
Cash flows from investing activities:
Sale of investment securities	154,615			—			—			—			154,615
Maturities of investment securities	930			—			—			—			930
Purchase of investment securities	(299,417		)	(6,314		)	—			—			(305,731		)
Proceeds from sale or liquidation of long-term investments	2,367			—			49			—			2,416
Purchase of long-term investments	(12,000		)	—			—			—			(12,000		)
Investments in real estate ventures	—			—			(40,916		)	—			(40,916		)
Distributions from real estate ventures	—			—			7,309			—			7,309
Increase in cash surrender value of life insurance policies	—			(484		)	—			—			(484		)
Decrease (increase) in restricted assets	188			(371		)	(689		)	—			(872		)
Issuance of notes receivable	(35,000		)	—			(8,250		)	35,000			(8,250		)
Proceeds from sale of fixed assets	—			4			—			—			4
Purchase of subsidiaries	—			—			(750		)	—			(750		)
Repayments of notes receivable	35,000			—			4,850			(35,000		)	4,850
Purchase of preferred securities	—			—			(1,000		)	—			(1,000		)
Investments in subsidiaries	(85,278		)	—			—			85,278			—
Capital expenditures	(15		)	(16,466		)	(6,923		)	—			(23,404		)
Pay downs of investment securities	1,849			—			—			—			1,849
Net cash used in investing activities	(236,761		)	(23,631		)	(46,320		)	85,278			(221,434		)
Cash flows from financing activities:
Proceeds from issuance of debt	408,750			40,164			—			(35,000		)	413,914
Repayments of debt	—			(43,724		)	(3,877		)	35,000			(12,601		)
Deferred financing costs	(12,360		)	—			—			—			(12,360		)
Borrowings under revolver	—			886,130			—			—			886,130
Repayments on revolver	—			(898,788		)	—			—			(898,788		)
Capital contributions received	—			15,270			70,008			(85,278		)	—
Intercompany dividends paid	—			(61,180		)	(39,550		)	100,730			—
Dividends and distributions on common stock	(167,328		)	—			—			—			(167,328		)
Distributions to non-controlling interest	—			—			(9,339		)	—			(9,339		)
Proceeds from exercise of Vector options	5,151			—			—			—			5,151
Tax benefit of options exercised	1,178			—			—			—			1,178
Net cash provided by (used in) financing activities	235,391			(62,128		)	17,242			15,452			205,957
Net increase (decrease) in cash and cash equivalents	60,409			(2,088		)	33,578			—			91,899
Cash and cash equivalents, beginning of year	151,342			11,812			71,312			—			234,466
Cash and cash equivalents, end of year	$	211,751		$	9,724		$	104,890		$	—		$	326,365

Summary of Significant Accounting Policies (Schedule of Prior Period Revisions) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets	$ 31,852	$ 21,120
Total assets	1,404,035	1,280,615	$ 1,389,042
Notes payable, long-term debt and other obligations, less current portion	1,132,943	856,108
Total liabilities	1,657,307	1,402,776
Total stockholders' equity	(253,272)	(122,161)	$ (20,680)	$ (50,605)
Total liabilities and stockholders' deficiency	$ 1,404,035	1,280,615
As Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets		51,261
Total assets		1,310,756
Notes payable, long-term debt and other obligations, less current portion		886,249
Total liabilities		1,432,917
Total stockholders' equity		(122,161)
Total liabilities and stockholders' deficiency		1,310,756
Revision \| ASU 2015-03
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets		(30,141)
Total assets		(30,141)
Notes payable, long-term debt and other obligations, less current portion		(30,141)
Total liabilities		(30,141)
Total stockholders' equity		0
Total liabilities and stockholders' deficiency		$ (30,141)

Summary of Significant Accounting Policies (Concentration of Credit Risk Narrative) (Details) - Customer Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Sales Revenue \| First Largest Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	16.00%	19.00%	19.00%
Sales Revenue \| Second Largest Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	10.00%
Accounts Receivable [Member] \| First Largest Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	9.00%	4.00%	11.00%
Accounts Receivable [Member] \| Second Largest Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	1.00%

Summary of Significant Accounting Policies (Other Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Allowance for doubtful accounts and cash discounts	$ 361	$ 479
Current restricted assets	7,330	9,195
Long-term restricted assets	3,986	12,303
Tax on payments of dividend equivalent rights	6,258	5,566	$ 4,612
Shipping and handling fees and costs	5,268	5,488	5,585
Tobacco and E-Cigarettes [Member]
Segment Reporting Information [Line Items]
Advertising costs	3,397	5,097	9,493
Real Estate
Segment Reporting Information [Line Items]
Advertising costs	$ 22,835	$ 25,657	$ 14,952

Summary of Significant Accounting Policies (Property, Plant and Equipment Narrative) (Details)	12 Months Ended
	Dec. 31, 2016
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Machinery and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Machinery and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years

Summary of Significant Accounting Policies (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	$ (11,245)	$ (8,313)	$ (1,343)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	9,869	12,048	18,102
Accumulated other comprehensive (loss) income, tax effect	6,272	7,758	12,706
Accumulated Net Unrealized Long-Term Equity Method Investment Gain (Loss) Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	0	0	(1,658)
Accumulated other comprehensive (loss) income, tax effect	0	0	1,156
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(2)	(19)	(55)
Accumulated other comprehensive (loss) income, tax effect	0	11	36
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(21,112)	(20,342)	(17,732)
Accumulated other comprehensive (loss) income, tax effect	$ 14,491	$ 13,977	$ 12,167

Summary of Significant Accounting Policies (Fair Value of Derivatives Embedded within Convertible Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Embedded Derivative [Line Items]
Fair market value of embedded derivatives at the midpoint of the inputs	$ 112,332	$ 144,042
Minimum
Embedded Derivative [Line Items]
Fair market value of embedded derivatives at the midpoint of the inputs	111,653	143,422
Maximum
Embedded Derivative [Line Items]
Fair market value of embedded derivatives at the midpoint of the inputs	$ 113,090	$ 144,660

Summary of Significant Accounting Policies (Schedule of Other, Net) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Interest and dividend income	$ 6,018	$ 7,038	$ 5,803
Out-of-period adjustment	0	0	1,231
Acceleration of closing fee related to termination of Douglas Elliman joint venture	0	0	2,335
Impairment of real estate, net	0	(230)	0
Loss on sale of assets	0	(78)	0
Gain on long-term investment	190	390	0
Impairment of long-term investments	(1,203)	(811)	0
Other (expense) income	(273)	100	27
Other, net	$ 4,732	$ 6,409	$ 9,396

Summary of Significant Accounting Policies (Other Current Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Accounts payable	$ 10,573	$ 19,639
Accrued promotional expenses	23,763	24,816
Accrued excise and payroll taxes payable, net	10,044	26,556
Accrued interest	35,449	28,147
Commissions payable	6,164	11,008
Accrued salaries and benefits	26,958	22,774
Other current liabilities	22,901	21,277
Total other current liabilities	$ 135,852	$ 154,217

Earnings Per Share Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 29, 2016	Sep. 29, 2015	Sep. 26, 2014
Class of Stock [Line Items]
Stock dividend paid to company stockholders				5.00%	5.00%	5.00%
Effect of stock dividend	$ 0	$ 0	$ 0
Increase in number of shares subject to outstanding stock options	5.00%	5.00%	5.00%
Dividend equivalent rights	$ 6,258	$ 5,566	$ 4,612
Tax on payments of dividend equivalent rights	435	211	306
Common Stock
Class of Stock [Line Items]
Effect of stock dividend	$ 609	$ 584	$ 520

Earnings Per Share (Net Income (Loss) for Purposes of Determining Basic and Diluted EPS) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Net income attributed to Vector Group Ltd.	$ 4,599	$ 23,175	$ 24,015	$ 19,338	$ 7,904	$ 12,466	$ 17,607	$ 21,221	$ 71,127	$ 59,198	$ 36,856
Income attributed to participating securities									(2,241)	(1,752)	(1,024)
Income attributed to participating securities									(2,241)	(1,752)	(1,024)
Net income available to common shares attributed to Vector Group Ltd.									68,886	57,446	35,832
Net income available to common shares attributed to Vector Group Ltd.									$ 68,886	$ 57,446	$ 35,832

Earnings Per Share (Basic and Diluted Earnings Per Share (in shares)) (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Weighted-average shares for basic EPS	124,031,786	123,648,565	113,479,170
Plus incremental shares related to stock options and non-vested restricted stock	227,790	33,632	70,069
Weighted-average shares for diluted EPS	124,259,576	123,682,197	113,549,239

Earnings Per Share (Antidilutive Securities Excluded from Earnings Per Share) (Details) - Weighted-average number of shares issuable upon conversion of debt - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidiliitive securities excluded from computation (in shares)	26,140,250	26,369,018	33,827,057
Weighted-average conversion price (in dollars per share)	$ 18.70	$ 18.62	$ 16.03

Investment Securities Available for Sale (Components of Investment Securities Available for Sale) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 140,760	$ 162,168
Gross Unrealized Gains	16,403	19,885
Gross Unrealized Losses	(260)	(77)
Fair Value	156,903	181,976
Marketable equity securities
Schedule of Available-for-sale Securities [Line Items]
Cost	34,956	47,502
Gross Unrealized Gains	16,141	19,833
Gross Unrealized Losses	(254)	(62)
Fair Value	50,843	67,273
Mutual funds invested in fixed income securities
Schedule of Available-for-sale Securities [Line Items]
Cost	20,507	20,126
Gross Unrealized Gains	81	0
Gross Unrealized Losses	(6)	(15)
Fair Value	20,582	20,111
Total marketable debt securities by maturity dates
Schedule of Available-for-sale Securities [Line Items]
Cost	85,297	94,540
Gross Unrealized Gains	181	52
Gross Unrealized Losses	0	0
Fair Value	$ 85,478	$ 94,592

Investment Securities Available for Sale (Maturity Dates of Marketable Debt Securities) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
U.S. Government securities
Schedule of Available-for-sale Securities [Line Items]
Market Value	$ 30,642
Under 1 Year	0
1 Year up to 5 Years	30,642
More than 5 Years	0
Corporate securities
Schedule of Available-for-sale Securities [Line Items]
Market Value	36,687
Under 1 Year	4,364
1 Year up to 5 Years	32,173
More than 5 Years	150
U.S. mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Market Value	6,500
Under 1 Year	0
1 Year up to 5 Years	36
More than 5 Years	6,464
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Market Value	1,398
Under 1 Year	0
1 Year up to 5 Years	0
More than 5 Years	1,398
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Market Value	8,980
Under 1 Year	8,980
1 Year up to 5 Years	0
More than 5 Years	0
Index-linked U.S. bonds
Schedule of Available-for-sale Securities [Line Items]
Market Value	770
Under 1 Year	0
1 Year up to 5 Years	770
More than 5 Years	0
Foreign fixed-income securities
Schedule of Available-for-sale Securities [Line Items]
Market Value	501
Under 1 Year	0
1 Year up to 5 Years	501
More than 5 Years	0
Total marketable debt securities by maturity dates
Schedule of Available-for-sale Securities [Line Items]
Market Value	85,478
Under 1 Year	13,344
1 Year up to 5 Years	64,122
More than 5 Years	$ 8,012

Investment Securities Available for Sale (Securities with Continuous Unrealized Losses) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
In loss position for Less than 12 months, Fair Value	$ 15,999	$ 15,991
In loss position for Less than 12 months, Unrealized Losses	(260)	(77)
Total Fair Value	15,999	15,991
In loss position for 12 months or more, Fair Value	0	0
In loss position for 12 months or more, Unrealized Losses	0	0
Total Unrealized Losses	(260)	(77)
Marketable equity securities
Schedule of Available-for-sale Securities [Line Items]
In loss position for Less than 12 months, Fair Value	5,746	5,938
In loss position for Less than 12 months, Unrealized Losses	(254)	(62)
Total Fair Value	5,746	5,938
In loss position for 12 months or more, Fair Value	0	0
In loss position for 12 months or more, Unrealized Losses	0	0
Total Unrealized Losses	(254)	(62)
Mutual funds invested in fixed income securities
Schedule of Available-for-sale Securities [Line Items]
In loss position for Less than 12 months, Fair Value	10,253	10,053
In loss position for Less than 12 months, Unrealized Losses	(6)	(15)
Total Fair Value	10,253	10,053
In loss position for 12 months or more, Fair Value		0
In loss position for 12 months or more, Unrealized Losses		0
Total Unrealized Losses	$ (6)	$ (15)

Investment Securities Available for Sale (Gross Realized Gains and Losses on Available-for-Sale Securities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Gross realized gains on sales	$ 3,408	$ 13,727	$ 275
Gross realized losses on sales	(501)	(2,589)	(286)
Gains (losses) on sale of investment securities available for sale	2,907	11,138	(11)
Other-than-temporary impairments	$ (5,381)	$ (12,846)	$ 0

Investment Securities Available for Sale (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Other-than-temporary impairments	$ (5,381)	$ (12,846)	$ 0
Proceeds from investment securities sales	116,070	270,576	154,615
Maturities of investment securities	10,822	5,491	930
Gross realized gains on sales	3,408	13,727	275
Morgans Hotel Group Co.
Schedule of Available-for-sale Securities [Line Items]
Other-than-temporary impairments	(4,772)	(6,895)
Corporate Securities and U.S. Government Securities
Schedule of Available-for-sale Securities [Line Items]
Maturities of investment securities	$ 20,034	$ 14,230	$ 2,779

Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
Leaf tobacco	$ 46,253	$ 49,856
Other raw materials	3,733	3,578
Work-in-process	633	789
Inventories at current cost	115,671	115,796
LIFO adjustments	(25,837)	(29,280)
Inventory, net	89,834	86,516
Cigarettes
Inventory [Line Items]
Finished goods	65,052	61,493
E-Cigarettes
Inventory [Line Items]
Finished goods	$ 0	80
LIFO adjustments		$ (5)

Inventories (Narrartive) (Details) - USD ($) $ in Thousands	12 Months Ended
Inventories (Narrartive) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
LIFO adjustments	$ 25,837	$ 29,280
Capitalized MSA cost in finished goods inventory	17,364	15,796
Inventories
Inventory [Line Items]
Federal excise tax in inventory	25,888	23,455
Cost of Goods Sold
Inventory [Line Items]
Effect of liquidations of LIFO inventory	211	1,703
Liggett \| Inventories
Inventory [Line Items]
Purchase commitments	10,874
Leaf tobacco
Inventory [Line Items]
LIFO adjustments	17,632	19,863
Other raw materials
Inventory [Line Items]
LIFO adjustments	214	643
Work-in-process
Inventory [Line Items]
LIFO adjustments	29	33
Finished goods
Inventory [Line Items]
LIFO adjustments	$ 7,962	8,736
E-Cigarettes
Inventory [Line Items]
LIFO adjustments		$ 5

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 234,494	$ 216,623
Less accumulated depreciation and amortization	(154,046)	(140,991)
Property, plant and equipment, net	80,448	75,632
Depreciation and amortization expense	20,782	20,423	$ 17,843
Liggett \| Capital Addition Purchase Commitments [Member]
Property, Plant and Equipment [Line Items]
Future machinery and equipment purchase commitments	805	832
Land and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,442	1,442
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	16,010	15,908
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	184,623	178,131
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 32,419	$ 21,142

Long-Term Investments (Long-term Investments) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Long-term Investments [Abstract]
Investments accounted at cost	$ 35,476	$ 41,231
Investments accounted for under the equity method	17,721	21,495
Long-term investments	$ 53,197	$ 62,726

Long-Term Investments (Cost-Method Investments) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($) investment	Dec. 31, 2014 USD ($)
Schedule of Cost-method Investments [Line Items]
Cost-method investments, carrying value	$ 35,476	$ 41,231
Cost-method investments, fair value	41,063	44,769
Cash distributions from cost method investments	4,741	587	$ 549
Purchase of long-term investments	50	$ 10,000	$ 12,000
Number of investments in funds \| investment		3
Reinsurance Company
Schedule of Cost-method Investments [Line Items]
Purchase of long-term investments		$ 5,000
Investment partnerships
Schedule of Cost-method Investments [Line Items]
Cost-method investments, carrying value	34,975	40,730
Cost-method investments, fair value	40,569	44,217
Investment partnerships \| Reinsurance Company
Schedule of Cost-method Investments [Line Items]
Purchase of long-term investments		5,000
Real estate partnership
Schedule of Cost-method Investments [Line Items]
Cost-method investments, carrying value	501	501
Cost-method investments, fair value	$ 494	$ 552

Long-Term Investments (Equity-Method Investments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Investments accounted for under the equity method	$ 17,721	$ 21,495
Distributions of equity method investment	1,158	2,364	$ 3,283
Equity in (losses) earnings from investments	(2,754)	(2,681)	$ 3,140
Indian Creek Investors LP
Schedule of Equity Method Investments [Line Items]
Investments accounted for under the equity method	$ 5,248	4,989
Equity method ownership percentage	20.22%
Boyar Value Fund
Schedule of Equity Method Investments [Line Items]
Investments accounted for under the equity method	$ 7,816	7,302
Equity method ownership percentage	31.99%
Quoted market value	$ 7,816
Ladenburg Thalmann Financial Services Inc.
Schedule of Equity Method Investments [Line Items]
Equity method ownership percentage	8.28%
Ladenburg Thalmann Financial Services Inc.
Schedule of Equity Method Investments [Line Items]
Investments accounted for under the equity method	$ 4,657	9,204
Quoted market value	37,067
Difference between carrying amount and underlying equity	24,431
Castle Brands, Inc.
Schedule of Equity Method Investments [Line Items]
Investments accounted for under the equity method	$ 0	$ 0
Equity method ownership percentage	7.88%
Quoted market value	$ 9,630
Difference between carrying amount and underlying equity	$ 1,857
Equity Method Investee \| Ladenburg Thalmann Financial Services Inc.
Schedule of Equity Method Investments [Line Items]
Equity method ownership percentage	8.28%

Long-Term Investments (Combined Financial Statements for Unconsolidated Subsidiaries) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Indian Creek and Boyar Value Fund [Member]
Balance Sheets
Investment securities	$ 67,546		$ 40,676
Cash and cash equivalents	33		101
Other assets	28		8,664
Total assets	67,607		49,441
Other liabilities	17,216		408
Total liabilities	17,216		408
Total shareholders' equity	50,391		49,033
Total liabilities and shareholders' equity	67,607		49,441
Income Statement
Revenues	438		565		$ 3,314
Expenses	(684)		(868)		(1,298)
Gross profit (loss)	(246)		(303)		2,016
Total net realized (loss) gain and net change in unrealized depreciation from investments	3,341		(14,809)		(168)
Income (loss) from continuing operations	$ 3,095		$ (15,112)		$ 1,848
Ladenburg Thalmann Financial Services Inc.
Balance Sheets
Cash and cash equivalents		$ 105,989		$ 114,548
Receivables from clearing brokers, note receivable and other receivable, net		115,887		115,334
Goodwill and intangible assets, net		251,411		269,774
Other assets		70,469		63,634
Total assets		543,756		563,290
Accrued compensation and commissions and fees payable		76,191		72,936
Accounts payable and accrued liabilities		37,189		24,615
Unamortized discount		1,001		1,665
Notes payable, net of unamortized discount		48,364		59,184
Other liabilities		30,716		21,487
Total liabilities		192,460		178,222
Preferred stock		1		1
Common stock		19		19
Additional paid-in capital		509,335		517,988
Accumulated deficit		(158,055)		(132,952)
Total controlling shareholders' equity		351,300		385,056
Non-controlling interest		(4)		12
Total shareholders' equity		351,296		385,068
Total liabilities and shareholders' equity		543,756		563,290
Income Statement
Revenues		1,104,227		1,122,735		$ 867,756
Expenses		(1,119,366)		(1,132,010)		(856,072)
Gross profit (loss)		(15,139)		(9,275)		11,684
Change in fair value of contingent consideration		(154)		31		12
Income (loss) from continuing operations		(15,293)		(9,244)		11,696
Net income (loss)		(25,159)		4,396		22,482
Castle Brands, Inc.
Balance Sheets
Current assets		42,285		36,922
Non-current assets		9,085		9,845
Total assets		51,370		46,767
Current liabilities		12,583		9,947
Non-current liabilities		15,215		13,696
Total liabilities		27,798		23,643
Total controlling shareholders' equity		19,838		19,978
Non-controlling interest		3,734		3,146
Total shareholders' equity		23,572		23,124
Total liabilities and shareholders' equity		51,370		46,767
Income Statement
Revenues		73,549		67,143		51,426
Expenses		(44,236)		(41,317)		(32,495)
Gross profit (loss)		29,313		25,826		18,931
Other expenses		(28,338)		(25,920)		(20,399)
Income (loss) from continuing operations		975		(94)		(1,468)
Net income (loss)		$ (1,263)		$ (2,946)		$ (4,845)

New Valley LLC (Investment in Real Estate Ventures) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 221,258	$ 221,258	$ 217,168
Total contributions		44,107	70,272	$ 40,916
Distributions from real estate ventures		33,204	17,563	7,309
Distributions from real estate ventures, return on capital		23,446	5,894	5,152
Equity in earnings from real estate ventures		5,200	2,001	4,103
New Valley LLC
Schedule of Investments [Line Items]
Investments in real estate ventures	221,258	221,258	217,168
Total contributions		44,107	70,272
Total distributions from real estate ventures		(56,650)	(23,457)
Equity in earnings from real estate ventures		5,200	2,001	4,103
Total maximum exposure to loss	228,585	228,585
Interest costs capitalized		11,433	9,928
New Valley LLC \| Variable Interest Entity, Primary Beneficiary
Schedule of Investments [Line Items]
VIE's assets	$ 14,385	$ 14,385	$ 13,702
New Valley LLC \| Monad Terrace
Schedule of Investments [Line Items]
Range of ownership	24.30%	24.30%	31.30%
New Valley LLC \| Wynn/CA JV, LLC
Schedule of Investments [Line Items]
Range of ownership	2.10%	2.10%
Payments to acquire equity method investments	$ 10,000
New Valley LLC \| New York City SMSA \| Minimum
Schedule of Investments [Line Items]
Range of ownership	3.10%	3.10%
New Valley LLC \| New York City SMSA \| Maximum
Schedule of Investments [Line Items]
Range of ownership	49.50%	49.50%
New Valley LLC \| Condominium and Mixed Use Development
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 172,720	$ 172,720	$ 164,023
Total contributions		29,535	61,068
Total distributions from real estate ventures		(37,910)	(18,787)
Equity in earnings from real estate ventures		5,639	3,664	7,906
Total maximum exposure to loss	180,047	180,047
New Valley LLC \| Condominium and Mixed Use Development \| New York City SMSA
Schedule of Investments [Line Items]
Investments in real estate ventures	131,770	131,770	138,247
Total contributions		5,661	48,232
Total distributions from real estate ventures		(27,574)	(18,787)
Equity in earnings from real estate ventures		7,432	4,533	7,806
Total maximum exposure to loss	133,335	133,335
New Valley LLC \| Condominium and Mixed Use Development \| All other U.S. areas
Schedule of Investments [Line Items]
Investments in real estate ventures	40,950	40,950	25,776
Total contributions		23,874	12,836
Total distributions from real estate ventures		(10,336)	0
Equity in earnings from real estate ventures		(1,793)	(869)	100
Total maximum exposure to loss	$ 46,712	$ 46,712
New Valley LLC \| Condominium and Mixed Use Development \| All other U.S. areas \| Minimum
Schedule of Investments [Line Items]
Range of ownership	15.00%	15.00%
New Valley LLC \| Condominium and Mixed Use Development \| All other U.S. areas \| Maximum
Schedule of Investments [Line Items]
Range of ownership	48.50%	48.50%
New Valley LLC \| Apartment Buildings
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 8,287	$ 8,287	15,754
Total distributions from real estate ventures		(9,055)	(3,290)
Equity in earnings from real estate ventures		1,588	527	341
Total maximum exposure to loss	8,287	8,287
New Valley LLC \| Apartment Buildings \| All other U.S. areas
Schedule of Investments [Line Items]
Investments in real estate ventures	8,287	8,287	15,754
Total distributions from real estate ventures		(9,055)	(3,290)
Equity in earnings from real estate ventures		1,588	527	341
Total maximum exposure to loss	$ 8,287	$ 8,287
New Valley LLC \| Apartment Buildings \| All other U.S. areas \| Minimum
Schedule of Investments [Line Items]
Range of ownership	7.60%	7.60%
New Valley LLC \| Apartment Buildings \| All other U.S. areas \| Maximum
Schedule of Investments [Line Items]
Range of ownership	16.30%	16.30%
New Valley LLC \| Hotels
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 24,932	$ 24,932	29,925
Total contributions		4,572	3,273
Total distributions from real estate ventures		(8,120)	0
Equity in earnings from real estate ventures		(1,445)	(3,134)	(4,255)
Total maximum exposure to loss	24,932	24,932
New Valley LLC \| Hotels \| New York City SMSA
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 21,895	$ 21,895	19,697
Range of ownership	5.20%	5.20%
Total contributions		$ 4,082	1,896
Equity in earnings from real estate ventures		(1,884)	(1,540)	(2,643)
Total maximum exposure to loss	$ 21,895	21,895
New Valley LLC \| Hotels \| International
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 3,037	$ 3,037	10,228
Range of ownership	49.00%	49.00%
Total contributions		$ 490	1,377
Total distributions from real estate ventures		(8,120)	0
Equity in earnings from real estate ventures		439	(1,594)	(1,612)
Total maximum exposure to loss	$ 3,037	3,037
New Valley LLC \| Commercial
Schedule of Investments [Line Items]
Investments in real estate ventures	13,290	13,290	5,449
Total contributions		10,000	5,931
Total distributions from real estate ventures		(515)	(480)
Equity in earnings from real estate ventures		(1,644)	(2)	0
Total maximum exposure to loss	13,290	13,290
New Valley LLC \| Commercial \| New York City SMSA
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 3,290	$ 3,290	5,449
Range of ownership	49.00%	49.00%
Total contributions		$ 0	5,931
Total distributions from real estate ventures		(515)	(480)
Equity in earnings from real estate ventures		(1,644)	(2)	0
Total maximum exposure to loss	$ 3,290	3,290
New Valley LLC \| Commercial \| All other U.S. areas
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 10,000	$ 10,000	0
Range of ownership	2.10%	2.10%
Total contributions		$ 10,000	0
Total maximum exposure to loss	$ 10,000	10,000
New Valley LLC \| Other
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 2,029	$ 2,029	2,017
Range of ownership	50.00%	50.00%
Total distributions from real estate ventures		$ (1,050)	(900)
Equity in earnings from real estate ventures		1,062	946	$ 111
Total maximum exposure to loss	$ 2,029	2,029
Douglas Elliman Realty, LLC
Schedule of Investments [Line Items]
Proceeds from commissions received		$ 15,078	$ 3,077

New Valley LLC (Combined Financial Statements for Unconsolidated Subsidiaries) (Details) - New Valley LLC - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Condominium and Mixed Use Development
Income Statement
Revenues	$ 511,844	$ 141,884	$ 182,635
Costs and expenses	303,020	92,837	96,993
Other expenses	42,566	10,672	6,798
Income (loss) from continuing operations	166,258	38,375	78,844
Balance Sheets
Investment in real estate	3,413,928	2,921,611
Total assets	3,786,206	3,237,835
Total debt	2,478,574	2,014,682
Total liabilities	2,687,351	2,195,940
Non-controlling interest	564,194	535,573
Apartment & Office Buildings
Income Statement
Revenues	87,225	83,871	85,704
Other expenses	83,117	75,384	86,153
Income (loss) from continuing operations	4,108	8,487	(449)
Balance Sheets
Investment in real estate	488,732	590,331
Total assets	522,459	626,513
Total debt	475,668	512,479
Total liabilities	484,377	529,692
Non-controlling interest	(9,931)	(4,463)
Hotels
Income Statement
Revenues	81,517	83,324	82,899
Costs and expenses	4,262	3,837	3,064
Other expenses	114,582	112,069	133,258
Income (loss) from continuing operations	(37,327)	(32,582)	(53,423)
Balance Sheets
Investment in real estate	781,461	824,753
Total assets	854,559	894,447
Total debt	491,200	511,029
Total liabilities	509,385	538,426
Non-controlling interest	312,113	294,470
Commercial
Income Statement
Revenues	8,410	5,638
Other expenses	11,195	5,642
Income (loss) from continuing operations	(2,785)	(4)	0
Balance Sheets
Investment in real estate	61,091	65,398
Total assets	74,512	67,343
Total debt	55,625	55,624
Total liabilities	57,601	56,415
Other
Income Statement
Revenues	3,344	3,030	2,714
Other expenses	1,227	1,049	1,019
Income (loss) from continuing operations	2,117	1,981	$ 1,695
Balance Sheets
Total assets	5,382	5,157
Total liabilities	$ 1,230	$ 1,022

New Valley LLC (Guarantees and Commitments) (Details) - New Valley LLC $ in Thousands	Dec. 31, 2016 USD ($)
One Project \| Payment Guarantee
Schedule of Investments [Line Items]
Maximum exposure on guarantees	$ 6,000
Three Projects
Schedule of Investments [Line Items]
Maximum exposure on guarantees	$ 5,400

New Valley LLC (Investments in Real Estate, net) (Details) $ in Thousands	1 Months Ended			12 Months Ended
	Apr. 30, 2015 USD ($)	May 31, 2014 USD ($)	Mar. 31, 2013 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Apr. 30, 2009 a room lot hole	Mar. 31, 2008 a
Schedule of Investments [Line Items]
Real estate investment, net				$ 23,640	$ 23,318
Impairment of real estate, net				1,203	811	$ 0
Escena
Schedule of Investments [Line Items]
Operating losses				(899)	(789)	$ (760)
Impairment of real estate, net					230
New Valley LLC
Schedule of Investments [Line Items]
Real estate investment, net				23,640	23,318
New Valley LLC \| Indian Creek
Schedule of Investments [Line Items]
Proceeds from sale of equity method investments		$ 14,400
Gain on sales of investment real estate		$ 2,400
New Valley LLC \| Escena
Schedule of Investments [Line Items]
Land and Land Improvements				8,907	8,907
Building and building improvements				1,878	1,875
Other				2,028	1,923
Investments in real estate, gross				12,813	12,705
Less accumulated depreciation				(2,021)	(1,989)
Real estate investment, net				10,792	10,716
Area of real estate property \| a								450
Number of real estate properties \| lot							867
Number of holes in golf course \| hole							18
Area of land \| a							7
Number of units in real estate property \| room							450
New Valley LLC \| Sagaponack
Schedule of Investments [Line Items]
Land and Land Improvements				$ 12,848
Real estate investment, net					$ 12,602
Payments to acquire real estate	$ 12,502
New Valley LLC \| Indian Creek
Schedule of Investments [Line Items]
Ownership percentage			80.00%
Payments to acquire real estate			$ 7,616

Goodwill and Other Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 70,815,000	$ 70,791,000
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	19,260,000	19,135,000
Less: accumulated amortization on amortizable intangibles	(15,668,000)	(13,478,000)
Finite-lived intangible assets, net	3,592,000	5,657,000
Unfavorable leases	4,022,000	4,022,000
Less: Accumulated amortization on amortizable intangibles	2,204,000	1,591,000
Unfavorable leases, net	1,818,000	2,431,000
Amortization expense	1,462,000	5,080,000
Amortization of unfavorable lease	(613,000)	(783,000)
Amortization expense, 2017	932,000
Amortization expense, 2018	833,000
Amortization income, 2019	(166,000)
Amortization income, 2020	(22,000)
Amortization expense, 2021	82,000
Amortization income, thereafter	(7,000)
Total goodwill and other intangible assets, net	261,918,000	263,959,000
Intangible asset associated with benefit under the MSA
Indefinite-lived Intangible Assets [Line Items]
Indefinite life intangibles	107,511,000	107,511,000
Trademark - Douglas Elliman
Indefinite-lived Intangible Assets [Line Items]
Indefinite life intangibles	80,000,000	80,000,000
Impairment of intangibles	0
Favorable leases
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	13,444,000	13,444,000
Amortization expense	$ 2,075,000	3,730,000
Favorable leases \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives	1 year
Favorable leases \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Other intangibles
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 5,816,000	5,691,000
Amortization expense		208,000
Other intangibles \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives	1 year
Other intangibles \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives	5 years
Unfavorable leases \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives	1 year
Unfavorable leases \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Backlog and listing inventory intangible assets
Finite-Lived Intangible Assets [Line Items]
Amortization expense		$ 1,925,000

Notes Payable, Long-Term Debt and Other Obligations (Schedule of Components of Debt and Other Obligations) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Aug. 30, 2016	May 09, 2016	Dec. 31, 2015	Dec. 31, 2014	Aug. 30, 2014	Apr. 15, 2014	Mar. 24, 2014	Dec. 31, 2013	Feb. 28, 2013	Jan. 31, 2013	Nov. 30, 2012
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	$ 1,203,249			$ 895,168
Less: Debt issuance costs	(30,798)			(30,141)
Total notes payable, long-term debt and other obligations	1,172,451			865,027
Less: Current maturities	(39,508)			(8,919)
Amount due after one year	1,132,943			856,108
Fair value of derivatives embedded within convertible debt	112,332			144,042
Senior Notes \| 7.75% Senior Secured Notes due 2021, including premium of $14,675 and $8,014
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	848,954			608,014
Premium	13,954			8,014
Interest rate		7.75%	7.75%			7.75%	7.75%			7.75%	7.75%
Convertible Debt
Debt Instrument [Line Items]
Unamortized discount	179,727			218,255	$ 245,465				$ 201,075
Convertible Debt \| 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $115,479 and $132,119
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	187,503			172,614
Unamortized discount	108,480			132,119	146,634				155,818
Fair value of derivatives embedded within convertible debt	$ 52,899			72,083
Interest rate	7.50%											7.50%
Convertible Debt \| 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $75,153 and $86,136
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	$ 121,520			97,881
Unamortized discount	71,247			86,136	$ 98,831				$ 0
Fair value of derivatives embedded within convertible debt	$ 59,433			71,959
Interest rate	5.50%							5.50%
Line of Credit \| Revolving credit facility \| Liggett
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	$ 37,163			3,213
Line of Credit \| Term loan under credit facility \| Liggett
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	2,999			3,269
Equipment loans \| Liggett
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	4,519			9,716
Other
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	$ 591			$ 461

Notes Payable, Long-Term Debt and Other Obligations (Notes Payable Narrative) (Details)								1 Months Ended				12 Months Ended
	Jan. 27, 2017 USD ($) shares	May 09, 2016 USD ($)	Feb. 15, 2015 USD ($)	Feb. 03, 2015 USD ($) shares	Nov. 14, 2014 USD ($)	Apr. 15, 2014 USD ($)	Mar. 24, 2014 USD ($)	Jan. 31, 2017 USD ($)	Mar. 31, 2014 USD ($) shares	Feb. 28, 2013 USD ($)	Nov. 30, 2012 USD ($)	Dec. 31, 2016 USD ($) series	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Feb. 21, 2017	Aug. 30, 2016	Aug. 30, 2014	Mar. 14, 2014	Jan. 31, 2013 USD ($)	Nov. 04, 2011	May 31, 2009 USD ($)	May 11, 2009 USD ($)
Debt Instrument [Line Items]
Increase in equity from conversion													$ 25,522,000	$ 132,021,000
Acceleration of interest expense related to debt conversion												$ 0	$ 0	$ 5,205,000
Senior Notes \| Subsequent Event
Debt Instrument [Line Items]
Shares issued (in shares) \| shares	2,000,000
Senior Notes \| 7.75% Senior Secured Notes Due 2021
Debt Instrument [Line Items]
Interest rate		7.75%				7.75%				7.75%						7.75%	7.75%		7.75%
Principal amount		$ 235,000,000				$ 150,000,000				$ 450,000,000		$ 835,000,000							$ 835,000,000
Net proceeds from issuance of debt		$ 236,900,000				$ 158,670,000				$ 438,250,000
Redemption price		103.50%				106.75%
Senior Notes \| 7.75% Senior Secured Notes Due 2021 \| Subsequent Event
Debt Instrument [Line Items]
Extinguishment of debt								$ 835,000,000
Senior Notes \| 6.125% Senior Secured Notes due 2025 \| Subsequent Event
Debt Instrument [Line Items]
Interest rate	6.125%
Principal amount	$ 850,000,000
Net proceeds from issuance of debt								$ 831,100,000
Redemption price								101.00%
Indenture threshold for earnings for payment of dividends (less than)								$ 75,000,000
Secured leverage ratio requirement								3.0
Convertible Debt
Debt Instrument [Line Items]
Number of series outstanding \| series												2
Term before record date to determine additional interest												3 years
Convertible Debt \| 7.5% Variable Interest Senior Convertible Notes due 2019
Debt Instrument [Line Items]
Interest rate											7.50%	7.50%
Principal amount											$ 230,000,000
Net proceeds from issuance of debt											$ 218,900,000
Redemption prince in event of change as defined in indenture											100.00%
Partial interest rate of convertible debt											2.50%
Convertible Debt \| 6.75% Variable Interest Senior Convertible Note due 2015
Debt Instrument [Line Items]
Interest rate			6.75%
Principal amount																						$ 50,000,000
Convertible principal balance				$ 25,000,000
Increase in equity from conversion												$ 25,000,000
Acceleration of interest expense related to debt conversion												$ 3,679,000
Convertible Debt \| 6.75% Variable Interest Senior Convertible Exchange Notes due 2014
Debt Instrument [Line Items]
Interest rate					6.75%									6.75%				6.75%				6.75%
Convertible Debt \| 5.5% Variable Interest Senior Convertible Debentures due 2020
Debt Instrument [Line Items]
Interest rate							5.50%					5.50%
Principal amount							$ 258,750,000
Net proceeds from issuance of debt							$ 250,300,000
Redemption prince in event of change as defined in indenture							100.00%
Partial interest rate of convertible debt							1.75%
Entity Affiliated with Dr. Frost \| Convertible Debt \| 6.75% Variable Interest Senior Convertible Note due 2015 \| Common Stock \| Affiliated Entity [Member]
Debt Instrument [Line Items]
Shares converted (in shares) \| shares				2,455,876
Entity Affiliated with Dr. Frost \| Convertible Debt \| 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 \| Affiliated Entity [Member]
Debt Instrument [Line Items]
Interest rate																					6.75%
Principal amount																					$ 50,000,000
Convertible principal balance			$ 25,000,000		$ 25,000,000				$ 25,000,000
Entity Affiliated with Dr. Frost \| Convertible Debt \| 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 \| Common Stock \| Affiliated Entity [Member]
Debt Instrument [Line Items]
Shares converted (in shares) \| shares									2,455,877
Dr. Phillip Frost [Member] \| Beneficial Owner
Debt Instrument [Line Items]
Ownership percentage by shareholders																				15.30%
Dr. Phillip Frost [Member] \| Beneficial Owner \| Subsequent Event
Debt Instrument [Line Items]
Ownership percentage by shareholders															15.30%

Notes Payable, Long-Term Debt and Other Obligations (Share Lending Agreement) (Details) - Jefferies & Company [Member] - Share Lending Agreement [Member] - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Sep. 30, 2016	Nov. 30, 2012	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Lending fee (in dollars per share)		$ 0.1
Fair value		$ 3,204
Shares outstanding (in shares)		7,431,606	1,579,879
Shares returned (in shares)	2,135,923	3,715,804
Amortized amount into interest expense			$ 466
Unamortized amount of issuance costs			$ 2,140	$ 2,607

Notes Payable, Long-Term Debt and Other Obligations (Conversion Rates on Convertible Debt) (Details) - Convertible Debt	12 Months Ended
	Dec. 31, 2016 $ / shares	Dec. 31, 2015 $ / shares
7.5% Variable Interest Senior Convertible Notes due 2019
Debt Instrument [Line Items]
Conversion price (in dollars per share)	$ 15.22	$ 15.22
Conversion ratio	0.065703	0.065703
5.5% Variable Interest Senior Convertible Debentures due 2020
Debt Instrument [Line Items]
Conversion price (in dollars per share)	$ 23.46	$ 23.46
Conversion ratio	0.04261825	0.04261825

Notes Payable, Long-Term Debt and Other Obligations (Other Schedules) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Interest expense associated with embedded derivatives	$ 25,732	$ 18,529	$ 32,071
Fair Value Of Derivatives [Roll Forward]
Loss (gain) from changes in fair value of embedded derivatives	(31,710)	(24,455)	(19,409)
Unamortized Debt Discount Reconciliation [Roll Forward]
Amortization of beneficial conversion feature	(12,796)	(8,681)	(19,401)
Convertible Debt
Fair Value Of Derivatives [Roll Forward]
Conversion of Variable Interest Senior Convertible Notes		(889)
Unamortized Debt Discount Reconciliation [Roll Forward]
Beginning balance of unamortized discount	218,255	245,465	201,075
Issuance of convertible notes - embedded derivative			82,775
Increase of convertible notes - beneficial conversion feature			24,974
Amortization of embedded derivatives	(25,732)	(18,529)	(32,071)
Amortization of beneficial conversion feature	(12,796)	(8,681)	(19,401)
Ending balance of unamortized discount	179,727	218,255	245,465
Convertible Debt \| Embedded Derivatives
Fair Value Of Derivatives [Roll Forward]
Beginning balance of derivative liability fair value	144,042	169,386	112,062
Increase from issuance			82,775
Loss (gain) from changes in fair value of embedded derivatives	(31,710)	(24,455)	(19,409)
Beginning balance of derivative liability fair value	112,332	144,042	169,386
Convertible Debt \| 6.75% Variable Interest Senior Convertible Note due 2015
Debt Instrument [Line Items]
Interest expense associated with embedded derivatives	0	0	6,097
Fair Value Of Derivatives [Roll Forward]
Conversion of Variable Interest Senior Convertible Notes		(889)	(2,511)
Loss (gain) from changes in fair value of embedded derivatives	0	5	(3,212)
Unamortized Debt Discount Reconciliation [Roll Forward]
Beginning balance of unamortized discount	0	0	19,312
Conversion of Variable Interest Senior Convertible Notes			(7,898)
Issuance of convertible notes - embedded derivative			0
Increase of convertible notes - beneficial conversion feature			0
Amortization of embedded derivatives	0	0	(6,097)
Amortization of beneficial conversion feature	0	0	(5,317)
Ending balance of unamortized discount	0	0	0
Convertible Debt \| 6.75% Variable Interest Senior Convertible Note due 2015 \| Embedded Derivatives
Fair Value Of Derivatives [Roll Forward]
Beginning balance of derivative liability fair value	0	884	6,607
Loss (gain) from changes in fair value of embedded derivatives	0	5	(3,212)
Beginning balance of derivative liability fair value	0	0	884
Convertible Debt \| 6.75% Variable Interest Senior Convertible Exchange Notes due 2014
Debt Instrument [Line Items]
Interest expense associated with embedded derivatives	0	0	13,570
Fair Value Of Derivatives [Roll Forward]
Conversion of Variable Interest Senior Convertible Notes			(3,531)
Loss (gain) from changes in fair value of embedded derivatives	0	0	(8,990)
Unamortized Debt Discount Reconciliation [Roll Forward]
Beginning balance of unamortized discount	0	0	25,945
Conversion of Variable Interest Senior Convertible Notes			(3,989)
Issuance of convertible notes - embedded derivative			0
Increase of convertible notes - beneficial conversion feature			0
Amortization of embedded derivatives	0	0	(13,570)
Amortization of beneficial conversion feature	0	0	(8,386)
Ending balance of unamortized discount	0	0	0
Convertible Debt \| 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 \| Embedded Derivatives
Fair Value Of Derivatives [Roll Forward]
Beginning balance of derivative liability fair value	0	0	12,521
Loss (gain) from changes in fair value of embedded derivatives	0	0	(8,990)
Beginning balance of derivative liability fair value	0	0	0
Convertible Debt \| 7.5% Variable Interest Senior Convertible Notes due 2019
Debt Instrument [Line Items]
Interest expense associated with embedded derivatives	14,294	8,777	5,553
Fair Value Of Derivatives [Roll Forward]
Loss (gain) from changes in fair value of embedded derivatives	(19,184)	(15,555)	(5,296)
Unamortized Debt Discount Reconciliation [Roll Forward]
Beginning balance of unamortized discount	132,119	146,634	155,818
Issuance of convertible notes - embedded derivative			0
Increase of convertible notes - beneficial conversion feature			0
Amortization of embedded derivatives	(14,294)	(8,777)	(5,553)
Amortization of beneficial conversion feature	(9,345)	(5,738)	(3,631)
Ending balance of unamortized discount	108,480	132,119	146,634
Convertible Debt \| 7.5% Variable Interest Senior Convertible Notes due 2019 \| Embedded Derivatives
Fair Value Of Derivatives [Roll Forward]
Beginning balance of derivative liability fair value	72,083	87,638	92,934
Loss (gain) from changes in fair value of embedded derivatives	(19,184)	(15,555)	(5,296)
Beginning balance of derivative liability fair value	52,899	72,083	87,638
Convertible Debt \| 5.5% Variable Interest Senior Convertible Debentures due 2020
Debt Instrument [Line Items]
Interest expense associated with embedded derivatives	11,438	9,752	6,851
Fair Value Of Derivatives [Roll Forward]
Loss (gain) from changes in fair value of embedded derivatives	(12,526)	(8,905)	(1,911)
Unamortized Debt Discount Reconciliation [Roll Forward]
Beginning balance of unamortized discount	86,136	98,831	0
Issuance of convertible notes - embedded derivative			82,775
Increase of convertible notes - beneficial conversion feature			24,974
Amortization of embedded derivatives	(11,438)	(9,752)	(6,851)
Amortization of beneficial conversion feature	(3,451)	(2,943)	(2,067)
Ending balance of unamortized discount	71,247	86,136	98,831
Convertible Debt \| 5.5% Variable Interest Senior Convertible Debentures due 2020 \| Embedded Derivatives
Fair Value Of Derivatives [Roll Forward]
Beginning balance of derivative liability fair value	71,959	80,864	0
Increase from issuance			82,775
Loss (gain) from changes in fair value of embedded derivatives	(12,526)	(8,905)	(1,911)
Beginning balance of derivative liability fair value	$ 59,433	$ 71,959	$ 80,864

Notes Payable, Long-Term Debt and Other Obligations (Liggett Debt and Commitments Narrative) (Details) - Liggett		12 Months Ended
	Jan. 14, 2015 USD ($)	Dec. 31, 2016 USD ($) financingagreements	Dec. 31, 2015 USD ($) financingagreements	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		$ 50,000,000
Line of Credit, covenant term restriction prior to payment of dividend		30 days
Required minimum borrowing availability 30 days prior to payment of dividend		$ 5,000,000
Line of Credit
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 60,000,000
Debt Covenant, Borrowing Base, Account Receivable	85.00%
Debt Covenant, Borrowing Base, Account Receivable Plus Amount	$ 10,000,000
Debt Covenant, Borrowing Base, Inventory	80.00%
Debt Covenant, Borrowing Base, Inventory, Cost Multiplier	60.00%
Debt Covenant, Borrowing Base, Inventory, Liquidation Value	85.00%
Credit Facility, Covenant measurement trailing period	12 months
Minimum Ebitda Ratio On Trailing Twelve Month Basis If Excess Availability Is Less Than 20000 Thousand	$ 100,000,000
Covenant, excess availability in credit facility threshold	20,000,000
Covenant, capital expenditure requirement, maximum carryover amount	10,000,000
Maximum Capital Expenditures Allowed Before Maximum Carryover Amount of 2500 Thousand	$ 20,000,000
Amount outstanding		40,162,000
Remaining borrowing capacity		$ 16,714,000
Interest rate at end of period		3.02%	2.70%
Covenant, Excess Property Value		$ 5,000,000
Line of Credit \| Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Line of Credit \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Line of Credit \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Medium-term Notes
Debt Instrument [Line Items]
Principal amount	$ 3,600,000
Periodic monthly payments	$ 25,000
Outstanding Principal After Total Future Periodic Payments		2,000,000
Equipment loans \| Three Equipment Loans
Debt Instrument [Line Items]
Principal amount			$ 5,115,000
Financing Agreements Entered Into \| financingagreements			3
Long-term Debt, Weighted Average Interest Rate			5.02%
Interest rate			4.99%
Term of Loan			36 months
Monthly Installment Amount				$ 95,000
Equipment loans \| Three Equipment Loans \| Minimum
Debt Instrument [Line Items]
Interest rate			4.98%
Equipment loans \| Three Equipment Loans \| Maximum
Debt Instrument [Line Items]
Interest rate			5.04%
Equipment loans \| Refinanced Equipment Loan
Debt Instrument [Line Items]
Principal amount			$ 2,843,000
Interest rate			5.63%
Term of Loan			21 months
Equipment loans \| Two Equipment Loans
Debt Instrument [Line Items]
Principal amount		$ 1,765,000
Financing Agreements Entered Into \| financingagreements		2
Long-term Debt, Weighted Average Interest Rate		4.79%
Monthly Installment Amount			$ 33,000
Equipment loans \| Two Equipment Loans \| Minimum
Debt Instrument [Line Items]
Interest rate		4.49%
Equipment loans \| Two Equipment Loans \| Maximum
Debt Instrument [Line Items]
Interest rate		4.85%

Notes Payable, Long-Term Debt and Other Obligations (Fair Value of Notes Payable and Long Term Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	$ 1,570,732	$ 1,297,875
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	$ 1,203,249	$ 895,168

Notes Payable, Long-Term Debt and Other Obligations (Schedule of Maturities) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
2017 Principal	$ 39,509
2017 Unamortized Discount	0
2017 Net	39,509
2018 Principal	2,099
2018 Unamortized Discount	0
2018 Net	2,099
2019 Principal	231,261
2019 Unamortized Discount	108,479
2019 Net	122,782
2020 Principal	261,151
2020 Unamortized Discount	71,247
2020 Net	189,904
2021 Principal	835,001
2021 Unamortized Discount	(13,954)
2021 Net	848,955
Thereafter Principal	0
Thereafter Unamortized Discount	0
Thereafter Net	0
Notes payable, long-term debt and other obligations	1,369,021
Unamortized Discount/ (Premium)	165,772
Total notes payable, long-term debt and other obligations	$ 1,203,249	$ 895,168

Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Operating lease term (more than one year)	1 year
Lease commitments, 2017	$ 24,952
Lease commitments, 2018	22,068
Lease commitments, 2019	21,786
Lease commitments, 2020	18,656
Lease commitments, 2021	15,213
Lease commitments, Thereafter	101,138
Lease commitments, Total	203,813
Rental expense	$ 27,237	$ 24,446	$ 22,516

Employee Benefit Plans (Narrative) (Details)	12 Months Ended
Employee Benefit Plans (Narrative) (Details)	Dec. 31, 2016 USD ($) employee plan	Dec. 31, 2015 USD ($) plan	Dec. 31, 2014 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Number of defined benefit plans \| plan	4	4
Accumulated benefit obligations in excess of aggregate projected benefit obligation	$ 51,213,000	$ 47,535,000
Accumulated benefit obligations in excess of aggregate accumulated benefit obligation	51,213,000	47,535,000
Accumulated benefit obligations in excess of aggregate fair value of plan assets	0	0
401 (k) plan cost recognized	$ 1,564,000	$ 1,467,000	$ 1,219,000
Hourly Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Period for amortization of benefit plan gains and losses	14 years 2 months 4 days
Salaried Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Period for amortization of benefit plan gains and losses	14 years 3 months 21 days
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Number of defined benefit plans \| plan	3
Ten-year rate of return	5.20%	6.00%	6.60%
Five-year rate of return	7.60%	6.30%	9.80%
Pension Benefits \| Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of defined benefit plans \| plan	2
Pension Benefits \| Nonqualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of defined benefit plans \| plan	1
Supplemental Employee Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Age requirement for participant	60 years
Required employment period	8 years
Supplemental Employee Retirement Plan [Member] \| President and Chief Executive Officer
Defined Benefit Plan Disclosure [Line Items]
Additional benefit			$ 736,000
Service period credit upon termination			36 months
Postretirement Life Insurance [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of retired employees \| employee	437
Number of active employees \| employee	110
Postretirement Medical [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of retired employees \| employee	192
Employee contribution percentage	100.00%

Employee Benefit Plans (Schedule of Defined Benefit Plan Activity) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amounts recognized in the consolidated balance sheets:
Non-current employee benefit liabilities	$ (58,958)	$ (55,055)
Pension Benefits
Change in benefit obligation:
Benefit obligation at January 1	(133,506)	(150,199)
Service cost	(547)	(532)	$ (523)
Interest cost	(5,419)	(4,992)	(6,196)
Plan settlement	0	17,047
Special termination benefits	0	(3,831)	0
Benefits paid	9,596	9,879
Expenses paid	309	490
Actuarial (gain) loss	(3,154)	(1,368)
Benefit obligation at December 31	(132,721)	(133,506)	(150,199)
Change in plan assets:
Balance as of January 1	106,620	134,017
Actual return on plan assets	6,720	(327)
Plan settlement	0	(17,047)
Expenses paid	(309)	(490)
Contributions	346	346
Benefits paid	(9,596)	(9,879)
Balance as of December 31	103,781	106,620	134,017
Unfunded status at December 31	(28,940)	(26,886)
Amounts recognized in the consolidated balance sheets:
Prepaid pension costs	22,273	20,650
Other accrued liabilities	(316)	(320)
Non-current employee benefit liabilities	(50,897)	(47,216)
Net amounts recognized	(28,940)	(26,886)
Other Postretirement Benefits
Change in benefit obligation:
Benefit obligation at January 1	(8,434)	(9,031)
Service cost	(5)	(8)	(9)
Interest cost	(385)	(371)	(430)
Plan settlement	0	0
Special termination benefits	0	0	0
Benefits paid	695	522
Expenses paid	0	0
Actuarial (gain) loss	(553)	454
Benefit obligation at December 31	(8,682)	(8,434)	(9,031)
Change in plan assets:
Balance as of January 1	0	0
Actual return on plan assets	0	0
Plan settlement	0	0
Expenses paid	0	0
Contributions	695	522
Benefits paid	(695)	(522)
Balance as of December 31	0	0	$ 0
Unfunded status at December 31	(8,682)	(8,434)
Amounts recognized in the consolidated balance sheets:
Prepaid pension costs	0	0
Other accrued liabilities	(621)	(595)
Non-current employee benefit liabilities	(8,061)	(7,839)
Net amounts recognized	$ (8,682)	$ (8,434)

Employee Benefit Plans (Net Periodic Cost) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost — benefits earned during the period	$ 547	$ 532	$ 523
Interest cost on projected benefit obligation	5,419	4,992	6,196
Expected return on assets	(6,076)	(7,378)	(8,518)
Settlement loss	0	3,214	0
Special termination benefit recognized	0	3,831	0
Amortization of net loss (gain)	1,855	1,083	1,075
Net expense (income)	1,745	6,274	(724)
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost — benefits earned during the period	5	8	9
Interest cost on projected benefit obligation	385	371	430
Expected return on assets	0	0	0
Settlement loss	0	0	0
Special termination benefit recognized	0	0	0
Amortization of net loss (gain)	(75)	(97)	(60)
Net expense (income)	$ 315	$ 282	$ 379

Employee Benefit Plans (Accumulated Other Comprehensive Income Next Fixal Year) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract]
Actuarial loss (gain)	$ 1,955
Pension Benefits
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract]
Actuarial loss (gain)	2,009
Other Postretirement Benefits
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract]
Actuarial loss (gain)	$ (54)

Employee Benefit Plans (Amounts Recognized Accumlated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss), before Income Taxes [Roll Forward]
Accumulated other comprehensive income (loss)	$ (34,319)	$ (29,899)
Amortization of gain (loss)	1,780	4,200
Net gain arising during the year	(3,064)	(8,620)	$ (4,698)
Accumulated other comprehensive income (loss)	(35,603)	(34,319)	(29,899)
Pension Benefits
Accumulated Other Comprehensive Income (Loss), before Income Taxes [Roll Forward]
Accumulated other comprehensive income (loss)	(35,258)	(30,481)
Amortization of gain (loss)	1,855	4,297
Net gain arising during the year	(2,511)	(9,074)
Accumulated other comprehensive income (loss)	(35,914)	(35,258)	(30,481)
Other Postretirement Benefits
Accumulated Other Comprehensive Income (Loss), before Income Taxes [Roll Forward]
Accumulated other comprehensive income (loss)	939	582
Amortization of gain (loss)	(75)	(97)
Net gain arising during the year	(553)	454
Accumulated other comprehensive income (loss)	$ 311	$ 939	$ 582

Employee Benefit Plans (Defined Benefit Plan Assumptions Used) (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Assumed rates of return on invested assets	6.00%	6.00%	6.50%
Pension Benefits \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rates — benefit obligation	3.60%	3.75%	2.75%
Discount rates — service cost	3.75%	2.75%	3.00%
Pension Benefits \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rates — benefit obligation	4.20%	4.50%	4.00%
Discount rates — service cost	4.50%	4.25%	4.75%
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Discount rates — benefit obligation	4.40%	4.75%	4.25%
Discount rates — service cost	4.75%	4.25%	5.00%
Assumed rates of return on invested assets	0.00%	0.00%	0.00%
Salary increase assumptions	3.00%	3.00%	3.00%

Employee Benefit Plans (Plan Asset Allocation) (Details)	Nov. 29, 2012	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Target allocation, rebalancing range	5.00%
Actual allocation		100.00%	100.00%
Marketable equity securities
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Target allocation	55.00%
Actual allocation		54.00%	51.00%
Investment grade fixed income securities
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Target allocation	30.00%
Actual allocation		30.00%	30.00%
High yield fixed income securities
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Target allocation	10.00%
Actual allocation		10.00%	11.00%
Alternative investments
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Actual allocation		2.00%	3.00%
Short-term investments
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Target allocation	5.00%
Actual allocation		4.00%	5.00%

Employee Benefit Plans (Pension Plan Assets Fair Value Measurement Reconciliation of Unobservable Inputs) (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Balance as of January 1	$ 3,414	$ 6,824
Distributions	(1,648)	(2,904)
Unrealized gain (loss) on long-term investments	16	(470)
Realized gain (loss) on long-term investments	208	(36)
Balance as of December 31	$ 1,990	$ 3,414

Employee Benefit Plans (Assumed Health Care Cost Trend Rates) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Assumed annual increases in Medicare Part B trends after eight years	4.50%	4.50%
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract]
Effect on total of service and interest cost components, 1% Increase	$ 4
Effect on total of service and interest cost components, 1% Decrease	(4)
Effect on benefit obligation, 1% Increase	71
Effect on benefit obligation, 1% Decrease	$ (67)
Minimum
Defined Benefit Plan Disclosure [Line Items]
Assumed annual increases in Medicare Part B trends for next eight years	0.30%	1.29%
Maximum
Defined Benefit Plan Disclosure [Line Items]
Assumed annual increases in Medicare Part B trends for next eight years	18.23%	17.92%

Employee Benefit Plans (Future Benefit Payments) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Supplemental Employee Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
2017	$ 0
2018	0
2019	0
2020	7,111
2021	0
2022 - 2026	51,155
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
2017	9,187
2018	8,715
2019	8,210
2020	14,838
2021	7,225
2022 - 2026	80,902
Postretirement Medical [Member]
Defined Benefit Plan Disclosure [Line Items]
2017	621
2018	641
2019	637
2020	622
2021	618
2022 - 2026	$ 3,015

Restructuring (Narrative) (Details) $ in Thousands	1 Months Ended	12 Months Ended
Restructuring (Narrative) (Details) $ in Thousands	Oct. 30, 2015 employee	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 41	$ 7,257	$ 0
Tobacco
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| employee	95
Percent of positions eliminated	17.00%
Restructuring charges		$ 41	7,257
Special termination benefits \| Tobacco
Restructuring Cost and Reserve [Line Items]
Restructuring charges			3,831
Lump sum payments \| Tobacco
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 1,607

Restructuring (Schedule of Amounts Expensed) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 41	$ 7,257	$ 0
Tobacco
Restructuring Cost and Reserve [Line Items]
Restructuring charges	41	7,257
Tobacco \| Cash Charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	41	1,365
Tobacco \| Employee severance and benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	1,094
Tobacco \| Lease termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	41	203
Tobacco \| Other restructuring expenses
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	68
Tobacco \| Non-Cash
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	5,892
Tobacco \| Employee pension benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	5,438
Tobacco \| Point of sale inventory impairment
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 454

Restructuring (Schedule of Activity) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restructuring Reserve [Roll Forward]
Restructuring charges	$ 41	$ 7,257	$ 0
Tobacco
Restructuring Reserve [Roll Forward]
Accrual balance	490	0
Restructuring charges	41	7,257
Utilized	(531)	(6,767)
Accrual balance	0	490	0
Tobacco \| Cash Charges
Restructuring Reserve [Roll Forward]
Restructuring charges	41	1,365
Tobacco \| Employee severance and benefits
Restructuring Reserve [Roll Forward]
Accrual balance	422	0
Restructuring charges	0	1,094
Utilized	(422)	(672)
Accrual balance	0	422	0
Tobacco \| Lease termination costs
Restructuring Reserve [Roll Forward]
Accrual balance	48	0
Restructuring charges	41	203
Utilized	(89)	(155)
Accrual balance	0	48	0
Tobacco \| Other restructuring expenses
Restructuring Reserve [Roll Forward]
Accrual balance	20	0
Restructuring charges	0	68
Utilized	(20)	(48)
Accrual balance	0	20	0
Tobacco \| Non-Cash
Restructuring Reserve [Roll Forward]
Restructuring charges	0	5,892
Tobacco \| Employee pension benefits
Restructuring Reserve [Roll Forward]
Accrual balance	0	0
Restructuring charges	0	5,438
Utilized	0	(5,438)
Accrual balance	0	0	0
Tobacco \| Point of sale inventory impairment
Restructuring Reserve [Roll Forward]
Accrual balance	0	0
Restructuring charges	0	454
Utilized	0	(454)
Accrual balance	$ 0	$ 0	$ 0

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Various U.S. state tax loss carryforwards	$ 6,551	$ 6,713
Ownership percentage of subsidiaries included in tax return (more than 80%)	80.00%
Valuation allowance	$ 4,439	3,900
Unrecognized tax benefits	515	1,523	$ 1,744	$ 3,122
Unrecognized tax benefits, penalties and interest expense	(74)	(28)
Unrecognized tax benefits, penalties and interest accrued	145	$ 219
Reasonably possible amount recognized over next 12 months	$ 170

Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
U.S. Federal	$ 29,185	$ 40,542	$ 8,809
State	7,407	13,886	2,416
Current Total	36,592	54,428	11,225
Deferred:
U.S. Federal	10,076	(9,943)	16,484
State	2,495	(3,252)	5,456
Deferred Total	12,571	(13,195)	21,940
Income tax expense	$ 49,163	$ 41,233	$ 33,165

Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Employee benefit accruals	$ 17,335	$ 16,201
Impairment of investments	1,534	4,332
Impact of timing of settlement payments	28,266	39,840
Various U.S. state tax loss carryforwards	6,551	6,713
Other	2,803	0
Deferred tax assets	56,489	67,086
Less: Valuation allowance	(4,439)	(3,900)
Net deferred tax assets	52,050	63,186
Deferred tax liabilities:
Excess of tax basis over book-basis non-consolidated entities	(7,494)	(7,292)
Book/tax differences on fixed and Intangible assets	(54,776)	(52,598)
Capitalized interest expense	(8,673)	(4,080)
Book/tax differences on inventory	(16,143)	(16,891)
Book/tax differences on long-term investments	(23,937)	(29,701)
Impact of accounting for convertible debt	(27,362)	(30,494)
Book/tax differences on available for sale securities	(6,750)	0
Other	0	(1,559)
Deferred tax liabilities	(145,135)	(142,615)
Net deferred tax liabilities	$ (93,085)	$ (79,429)

Income Taxes (Income Tax Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income before income taxes	$ 126,429	$ 107,705	$ 82,279
Federal income tax expense at statutory rate	44,250	37,697	28,798
Increases (decreases) resulting from:
State income taxes, net of federal income tax benefits	6,991	6,862	4,804
Impact of non-controlling interest	(2,148)	(2,516)	(4,290)
Non-deductible expenses	2,569	2,941	2,581
Impact of domestic production deduction	(2,603)	(3,436)	(248)
Tax credits	(359)	(265)	(275)
Other	(1,202)	152	0
Inclusion of tax liabilities from unincorporated entities	1,126	831	1,374
Changes in valuation allowance, net of equity and tax audit adjustments	539	(1,033)	421
Income tax expense	$ 49,163	$ 41,233	$ 33,165

Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance	$ 1,523	$ 1,744	$ 3,122
Additions based on tax positions related to prior years	72	265	318
Settlements	(119)	(132)	(442)
Expirations of the statute of limitations	(961)	(354)	(1,254)
Balance	$ 515	$ 1,523	$ 1,744

Stock Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	May 16, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized		$ 3,680
Granted (in shares)		406,875	427,219	448,580
Exercise price of options (in dollars per share)		$ 22.13	$ 20.95	$ 16.97
Option exercises in period, intrinsic value		$ 309	$ 1,151	$ 3,539
Tax benefit of options exercised		579	821	1,178
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 2,203	1,675	1,573
Contractual term		10 years
Total compensation cost not yet recognized, period for recognition		1 year 3 months 21 days
Tax benefit of options exercised		$ 116	$ 821	$ 1,178
Stock Options [Member] \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Stock Options [Member] \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		7 years
2014 Management Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual short-term cash incentives performance period	12 months
Shares available for issuance		7,823,451

Stock Compensation (Fair Value Assumptions) (Details) - Stock Options [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, Minimum	1.50%	1.80%	1.10%
Risk-free interest rate, Maximum	1.70%	2.00%	2.60%
Expected volatility, Minimum	16.49%	22.18%	18.51%
Expected volatility, Maximum	18.13%	22.25%	22.37%
Dividend yield	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected holding period	7 years	7 years	4 years
Weighted-average grant date fair value	$ 5.09	$ 6.47	$ 3.28
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected holding period	10 years	10 years	10 years
Weighted-average grant date fair value	$ 6.88	$ 8.07	$ 7.32

Stock Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2011	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding (in shares)	3,932,912.000	3,627,006.000	3,643,316
Granted (in shares)	406,875	427,219	448,580
Exercised (in shares)	(33,501)	(121,308)	(464,877)
Canceled (in shares)	(6)	(5)	(13)
Outstanding (in shares)	4,306,280	3,932,912.000	3,627,006.000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 13.16	$ 12.16	$ 11.41
Granted, Weighted Average Exercise Price (in dollars per share)	22.13	20.95	16.97
Exercised, Weighted Average Exercise Price (in dollars per share)	11.87	11.45	10.87
Cancelled, Weighted Average Exercise Price (in dollars per share)	$ 0.00	0.00	0.00
Outstanding, Weighted Average Exercise Price (in dollars per share)		$ 13.16	$ 12.16
Outstanding, Weighted Average Remaining Contractual Term		5 years 10 months 24 days	6 years 4 months 24 days	6 years 6 months 18 days
Outstanding, Aggregate Intrinsic Value	$ 37,557	$ 36,612	$ 25,977		$ 9,959
Options exercisable (in shares)	2,111,985	2,137,112	1,678,829
Common stock fair value	$ 22.74	$ 22.47	$ 19.33

Stock Compensation (Shares Authorized under Stock Option Plans by Exercise Price Range) (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding (in shares) \| shares	4,306,280
Outstanding, Weighted Average Remaining Contractual Life	5 years 3 months 24 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 14.02
Options Exercisable (in shares) \| shares	2,111,985
Options Exercisable, Weighted Average Remaining Contractual Life	3 years 2 months 12 days
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 10.81
Options Exercisable, Aggregate Intrinsic Value \| $	$ 25,331
Exercise Price Range One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Minimum (in dollars per share)	$ 8.85
Range of Exercise Prices, Maximum (in dollars per share)	$ 11.07
Options Outstanding (in shares) \| shares	1,575,948
Outstanding, Weighted Average Remaining Contractual Life	2 years 10 months 24 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 10.02
Options Exercisable (in shares) \| shares	1,575,948
Options Exercisable, Weighted Average Remaining Contractual Life	2 years 10 months 24 days
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 10.02
Options Exercisable, Aggregate Intrinsic Value \| $	$ 0
Exercise Price Range Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Minimum (in dollars per share)	$ 11.07
Range of Exercise Prices, Maximum (in dollars per share)	$ 13.28
Options Outstanding (in shares) \| shares	1,447,663
Outstanding, Weighted Average Remaining Contractual Life	5 years 5 months 6 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 13.13
Options Exercisable (in shares) \| shares	536,037
Options Exercisable, Weighted Average Remaining Contractual Life	4 years
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 12.88
Options Exercisable, Aggregate Intrinsic Value \| $	$ 0
Exercise Price Range Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Minimum (in dollars per share)	$ 13.28
Range of Exercise Prices, Maximum (in dollars per share)	$ 15.49
Options Outstanding (in shares) \| shares	0
Outstanding, Weighted Average Remaining Contractual Life	0 years
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 0.00
Options Exercisable (in shares) \| shares	0
Options Exercisable, Weighted Average Remaining Contractual Life	0 years
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 0.00
Options Exercisable, Aggregate Intrinsic Value \| $	$ 0
Exercise Price Range Four [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Minimum (in dollars per share)	$ 15.49
Range of Exercise Prices, Maximum (in dollars per share)	$ 17.70
Options Outstanding (in shares) \| shares	448,577
Outstanding, Weighted Average Remaining Contractual Life	7 years 4 months 24 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 16.98
Options Exercisable (in shares) \| shares	0
Options Exercisable, Weighted Average Remaining Contractual Life	0 years
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 0.00
Options Exercisable, Aggregate Intrinsic Value \| $	$ 0
Exercise Price Range Five [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Minimum (in dollars per share)	$ 17.70
Range of Exercise Prices, Maximum (in dollars per share)	$ 19.92
Options Outstanding (in shares) \| shares	0
Outstanding, Weighted Average Remaining Contractual Life	0 years
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 0.00
Options Exercisable (in shares) \| shares	0
Options Exercisable, Weighted Average Remaining Contractual Life	0 years
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 0.00
Options Exercisable, Aggregate Intrinsic Value \| $	$ 0
Exercise Price Range Six [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Minimum (in dollars per share)	$ 19.92
Range of Exercise Prices, Maximum (in dollars per share)	$ 22.13
Options Outstanding (in shares) \| shares	834,092
Outstanding, Weighted Average Remaining Contractual Life	8 years 7 months 12 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 21.53
Options Exercisable (in shares) \| shares	0
Options Exercisable, Weighted Average Remaining Contractual Life	0 years
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 0.00
Options Exercisable, Aggregate Intrinsic Value \| $	$ 0

Stock Compensation (Restricted Stock Activity) (Details) - Restricted Stock [Member] $ in Thousands				1 Months Ended		12 Months Ended
	Apr. 01, 2016 USD ($) directors shares	Oct. 10, 2015 shares	Jul. 23, 2014 USD ($) shares	Oct. 31, 2013 USD ($) shares	May 31, 2013 USD ($) shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Apr. 30, 2016 USD ($)	Nov. 10, 2015 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized						$ 37,853	$ 44,632
Total compensation cost not yet recognized, period for recognition						2 years 8 months 28 days
April 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options, grants in period (shares) \| shares	52,500
Share-based compensation expense	$ 236
Number of directors \| directors	5
Award vesting period	3 years
Total compensation cost not yet recognized									$ 1,054
November 10, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options, grants in period (shares) \| shares		1,260,000
Performance period		7 years
Share-based compensation expense						$ 597	4,278
Total compensation cost not yet recognized										$ 28,374
July 23, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options, grants in period (shares) \| shares			1,157,625
Performance period		7 years
Share-based compensation expense						3,122	2,992	$ 1,320
Total compensation cost not yet recognized			$ 20,780
May 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options, grants in period (shares) \| shares					12,155
Share-based compensation expense						111	272	271
Total compensation cost not yet recognized					$ 815
October 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options, grants in period (shares) \| shares				31,835
Share-based compensation expense						$ 85	$ 86	$ 86
Total compensation cost not yet recognized				$ 458

Contingencies (Overview and Bonds) (Details) - Liggett $ in Thousands		1 Months Ended		12 Months Ended
	Dec. 07, 2016 USD ($) case	Dec. 31, 2016 USD ($) case	Oct. 31, 2013 USD ($) case	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Loss Contingencies [Line Items]
Tobacco product liability legal expenses and costs				$ 26,611	$ 26,987	$ 9,944
Engle Progeny Cases
Loss Contingencies [Line Items]
Amount of litigation settlement to (against) entity	$ (17,650)	$ (17,650)	$ (110,000)
Cases settled \| case	124	124	4,900
Bonds \| Putney, Calloway, Boatright and Ward Cases
Loss Contingencies [Line Items]
Security posted for appeal of judgment		$ 4,241		$ 4,241

Contingencies (Cautionary Statement About Engle Progeny Cases) (Details) $ in Thousands		1 Months Ended		3 Months Ended	12 Months Ended
	Dec. 07, 2016 USD ($) case	Dec. 31, 2016 USD ($) case	Oct. 31, 2013 USD ($) case	Dec. 31, 2016 case	Dec. 31, 2016 USD ($) case
Engle Progeny Cases
Loss Contingencies [Line Items]
Cases with judgments (more than)		120		120	120
Liggett \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases with verdicts		24		24	24
Plaintiffs' verdicts (in cases)		15		15	15
Cases with verdicts in favor of defendants		9		9	9
Cases including punitive damages (in cases)		4		4	4
Cases settled	124	124	4,900
Amount of litigation settlement to (against) entity \| $	$ (17,650)	$ (17,650)	$ (110,000)
Liggett \| Irimi and Cohen [Member]
Loss Contingencies [Line Items]
Cases with verdicts where defendants motion for new trial granted		2		2	2
Liggett and Vector Tobacco \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases settled				1	177
Amount of litigation settlement to (against) entity \| $					$ (6,025)

Contingencies (Individual Actions) (Details)	Dec. 31, 2016 case
Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending (in cases)	35
Liggett
Loss Contingencies [Line Items]
Cases pending (in cases)	3
Liggett \| Individual Actions Cases \| Maryland
Loss Contingencies [Line Items]
Cases pending (in cases)	16
Liggett \| Individual Actions Cases \| Florida
Loss Contingencies [Line Items]
Cases pending (in cases)	7
Liggett \| Individual Actions Cases \| New York
Loss Contingencies [Line Items]
Cases pending (in cases)	6
Liggett \| Individual Actions Cases \| Louisiana
Loss Contingencies [Line Items]
Cases pending (in cases)	2
Liggett \| Individual Actions Cases \| West Virginia
Loss Contingencies [Line Items]
Cases pending (in cases)	2
Liggett \| Individual Actions Cases \| Missouri
Loss Contingencies [Line Items]
Cases pending (in cases)	1
Liggett \| Individual Actions Cases \| Ohio
Loss Contingencies [Line Items]
Cases pending (in cases)	1

Contingencies (Engle Progeny Cases and Settlements) (Details) $ in Thousands		1 Months Ended							3 Months Ended	12 Months Ended
	Dec. 07, 2016 USD ($) case	Dec. 31, 2016 USD ($) case	Feb. 28, 2015	Oct. 31, 2013 USD ($) case	May 31, 2003 USD ($) plaintiff	Jul. 31, 2000 USD ($)	Apr. 30, 2000 USD ($)	Jul. 31, 1999 plaintiff	Dec. 31, 2016 USD ($) case	Dec. 31, 2016 USD ($) case	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Loss Contingencies [Line Items]
Litigation settlement and judgment expense										$ 20,000	$ 20,072	$ 2,475
Engle Progeny Cases
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff								3
Compensatory damages awarded							$ 12,704
Punitive damages awarded						$ 145,000,000
Plaintiffs' verdicts (in cases) \| plaintiff					1
Damages awarded and subsequently overturned					$ 5,831
Number of unfavorable plaintiff verdicts \| plaintiff					2
Liggett and Vector Tobacco \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases settled \| case									1	177
Amount of litigation settlement to (against) entity										$ (6,025)
Cases pending (in cases) \| case		125							125	125
Liggett
Loss Contingencies [Line Items]
Cases pending (in cases) \| case		3							3	3
Liggett \| Engle Progeny Cases
Loss Contingencies [Line Items]
Punitive damages awarded						$ 790,000
Cases settled \| case	124	124		4,900
Amount of litigation settlement to (against) entity	$ (17,650)	$ (17,650)		$ (110,000)
Litigation settlement amount paid in lump sum	14,000			$ 61,600
Litigation settlement, installment term			14 years
Claims dismissed (more than) \| case				4,900
Litigation settlement and judgment expense				$ 86,213					$ 17,650
Litigation settlement and judgment expense, amount discounted				$ 25,000
Discount rate				11.00%
Litigation settlement amount paid in installment payments	$ 3,650			$ 48,000
Interest rate on installment payments due	5.00%
Litigation settlement amount of estimated future payments per annum				$ 3,400
Liggett \| Lukacs, Campbell, Douglas, Clay, Tullo, Ward Rizzuto, Lambert and Buchanan
Loss Contingencies [Line Items]
Payments for legal settlements										$ 39,773

Contingencies (Engle Progeny Judgments Schedule) (Details) - USD ($) $ in Thousands		1 Months Ended			12 Months Ended
	Jan. 06, 2016	Sep. 30, 2016	Feb. 29, 2016	Nov. 30, 2014	Dec. 31, 2016
Liggett
Loss Contingencies [Line Items]
Compensatory damages accrued, paid or compromised					$ (24,328)
Punitive damages accrued, paid or compromised					(10,800)
Liggett \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					24,345
Punitive damages awarded					10,800
Liggett \| Pending Litigation
Loss Contingencies [Line Items]
Compensatory damages awarded					17
Punitive damages awarded					0
Liggett \| Lukacs v. R.J. Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					12,418
Punitive damages awarded					0
Liggett \| Campbell v R J Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					156
Punitive damages awarded					0
Liggett \| Douglas v R J Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					1,350
Punitive damages awarded					0
Liggett \| Clay v R J Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					349
Punitive damages awarded					1,000
Liggett \| Putney v R J Reynolds
Loss Contingencies [Line Items]
Compensatory damages reversed			$ 3,000
Liggett \| Putney v R J Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					17
Punitive damages awarded					0
Liggett \| Tullo v R J Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					225
Punitive damages awarded					0
Liggett \| Ward v R J Reynolds
Loss Contingencies [Line Items]
Attorneys' fees and costs awarded					981
Liggett \| Ward v R J Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					1
Punitive damages awarded					0
Liggett \| Calloway v RJ Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					0
Punitive damages awarded					0
Liggett \| Buchanan v. R.J. Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					2,750
Punitive damages awarded					0
Liggett \| Cohen v. R.J. Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					0
Punitive damages awarded					0
Liggett \| Rizzuto v. R.J. Reynolds
Loss Contingencies [Line Items]
Amount of litigation settlement to (against) entity					1,500
Liggett \| Rizzuto v. R.J. Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					3,479
Punitive damages awarded					0
Liggett \| Irimi v. R.J. Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					0
Punitive damages awarded					0
Liggett \| Lambert v. R.J. Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					3,600
Punitive damages awarded					9,500
Liggett \| Boatright v. R.J. Reynolds
Loss Contingencies [Line Items]
Compensatory damages awarded				$ 12,750
Punitive damages awarded				$ 300
Liggett \| Boatright v. R.J. Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					0
Punitive damages awarded					300
Liggett \| Caprio v. R.J. Reynolds \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded					0
Punitive damages awarded					0
RJ Reynolds \| Boatright v. R.J. Reynolds
Loss Contingencies [Line Items]
Apportioned fault percentage to plaintiff				15.00%
R.J. Reynolds, Phillip Morris, Lorillard, and Liggett \| Calloway v RJ Reynolds
Loss Contingencies [Line Items]
Compensatory damages reversed		$ 1,530
Punitive damages reversed	$ 7,600
Damages awarded					$ 16,100
Phillip Morris \| Boatright v. R.J. Reynolds
Loss Contingencies [Line Items]
Compensatory damages awarded				$ 15,000
Punitive damages awarded				$ 19,700
Apportioned fault percentage to defendant				85.00%

Contingencies (Appeals of Engle Progeny Judgments, Maryland and Only Liggett Cases) (Details) - case	1 Months Ended
	Mar. 31, 2012	Dec. 31, 2016
Engle Progeny Cases
Loss Contingencies [Line Items]
Number of cases declined for review by supreme court	2
Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending (in cases)		35
Liggett
Loss Contingencies [Line Items]
Cases pending (in cases)		3
Liggett \| Individual Actions Cases
Loss Contingencies [Line Items]
Pending claims with no activity		2
Maryland \| Synergy Exposure Cases
Loss Contingencies [Line Items]
Cases pending (in cases)		20
Maryland \| Liggett \| Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending (in cases)		16

Contingencies (Class Actions, Health Care Cost Recovery Actions, and Upcoming Trials) (Details) $ in Thousands	1 Months Ended					12 Months Ended
	Jul. 31, 2015 plaintiff case claims	Oct. 31, 2013 case	May 31, 2013 case	May 31, 2009	Jul. 31, 1999 plaintiff	Dec. 31, 2016 USD ($) defendant case	Dec. 31, 2001 case
Parsons v. AC & S Inc.
Loss Contingencies [Line Items]
Damages sought \| $						$ 1,000
Number of defendants in bankruptcy \| defendant						3
Department of Justice Lawsuit
Loss Contingencies [Line Items]
Required reporting period				10 years
Engle Progeny Cases
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff					3
Pending claims scheduled for trial						6
Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending (in cases)						35
Pending claims scheduled for trial						1
Liggett
Loss Contingencies [Line Items]
Cases pending (in cases)						3
Liggett \| Class Actions
Loss Contingencies [Line Items]
Cases pending (in cases)						3
Liggett \| Crow Creek Sioux Tribe v. American Tobacco Company
Loss Contingencies [Line Items]
Cases pending (in cases)						1
Liggett \| Engle Progeny Cases
Loss Contingencies [Line Items]
Claims dismissed		4,900
Liggett and Vector Tobacco \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases pending (in cases)						125
West Virginia \| Tobacco Litigation Personal Injury Cases
Loss Contingencies [Line Items]
Cases pending (in cases)							750
Number of mistrials			2
Claims dismissed			1
Number of plaintiffs	30
Number of consolidated trials \| claims	6
Number of plaintiffs in each trial \| plaintiff	5
West Virginia \| Liggett \| Tobacco Litigation Personal Injury Cases
Loss Contingencies [Line Items]
Cases pending (in cases)						90
West Virginia \| Liggett \| Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending (in cases)						2

Contingencies (MSA and Other State Settlement Agreements) (Details)		12 Months Ended		25 Months Ended
	Dec. 30, 2015 USD ($)	Dec. 31, 2016 USD ($) sponsorship	Dec. 31, 2015 USD ($)	Mar. 31, 1998 USD ($) state
Health Care Cost Recovery Actions
Loss Contingencies [Line Items]
Number of states with settled litigation \| state				46
Number of brand name sponsorships allowed \| sponsorship		1
Brand name sponsorship period		12 months
Annual payment requirement				$ 9,000,000,000
Liggett
Loss Contingencies [Line Items]
Number of states with settled litigation \| state				45
Liggett \| Health Care Cost Recovery Actions
Loss Contingencies [Line Items]
Estimated litigation liability		$ 0
Percentage of cigarettes sales exceeds market share exemption		1.65%
Vector Tobacco \| Health Care Cost Recovery Actions
Loss Contingencies [Line Items]
Estimated litigation liability		$ 0
Percentage of cigarettes sales exceeds market share exemption		0.28%
Liggett and Vector Tobacco \| Health Care Cost Recovery Actions
Loss Contingencies [Line Items]
Annual payment requirement			$ 118,000,000
Payments for legal settlements	$ 102,000,000
Product Concentration Risk \| Sales Revenue \| Liggett and Vector Tobacco
Loss Contingencies [Line Items]
Concentration risk percentage		3.30%

Contingencies (Certain MSA Disputes) (Details) $ in Thousands	1 Months Ended	12 Months Ended	48 Months Ended
	Jun. 30, 2010 state	Dec. 31, 2016 USD ($) state	Dec. 31, 2016 USD ($) state	Sep. 30, 2013 state
2003 NPM Adjustment
Loss Contingencies [Line Items]
Number of states agreed to single arbitration		48
Aggregate number of settling states		49
Reduction in NPM adjustment, percent		20.00%	20.00%
Number of settling states with diligent enforcement not contested	16
Combined allocable share, percentage	14.00%
Non-settling states				15
Non-settling states that did not diligently enforce escrow statutes		4	4	6
2003-2012 NPM Adjustment
Loss Contingencies [Line Items]
Settling states with term sheet		22
Kentucky and Indiana \| 2003 NPM Adjustment
Loss Contingencies [Line Items]
Non-settling states that did not diligently enforce escrow statutes				2
Pennsylvania and Maryland \| 2003 NPM Adjustment
Loss Contingencies [Line Items]
Reduction in NPM adjustment, percent		50.00%	50.00%
Pennsylvania and Maryland \| 2004-2010 NPM Adjustment
Loss Contingencies [Line Items]
Number of states agreed to single arbitration		2
Liggett and Vector Tobacco \| 2004-2010 NPM Adjustment
Loss Contingencies [Line Items]
Amounts accrued \| $		$ 20,000	$ 20,000
Liggett and Vector Tobacco \| Cost of Sales \| Health Care Cost Recovery Actions, NPM Adjustment
Loss Contingencies [Line Items]
Settlement adjustment credit \| $			21,739
Liggett \| 2011-2015 NPM Adjustment
Loss Contingencies [Line Items]
Amounts accrued \| $		$ 28,600	$ 28,600

Contingencies (“Gross” v. “Net” Calculations and Other State Settlements) (Details) - Health Care Cost Recovery Actions		1 Months Ended			12 Months Ended		25 Months Ended
	Jan. 12, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Jul. 31, 2015 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2003 USD ($)	Mar. 31, 1998 USD ($) state
Loss Contingencies [Line Items]
Annual payment requirement							$ 9,000,000,000
Liggett
Loss Contingencies [Line Items]
Damages awarded			$ 8,100,000	$ 16,000,000
Damages paid		$ 8,100,000
Number of states not included in settlement agreement \| state							4
Liggett \| Cost of Sales
Loss Contingencies [Line Items]
Settlement adjustment credit		$ 370,000
MINNESOTA \| Liggett
Loss Contingencies [Line Items]
Annual payment requirement						$ 100,000
Florida \| Liggett
Loss Contingencies [Line Items]
Annual payment requirement					$ 250,000
Amount of litigation settlement to (against) entity					$ (1,200,000)
Years annual payments required					21 years
Years annual payments required that are subject to inflation adjustment					12 years
MISSISSIPPI \| Liggett
Loss Contingencies [Line Items]
Damages sought	$ 27,000,000
Punitive damages and attorney's fees sought	$ 20,000,000

Contingencies (Activity in Accruals for MSA and Tobacco Litigation Schedule) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Loss Contingency Accrual [Roll Forward]
Current liabilities, beginning balance	$ 52,145	$ 29,471	$ 84,658
Expenses	127,165	138,928	120,918
NPM Settlement adjustment		1,351	0
Change in MSA obligations capitalized as inventory	1,568	1,426	(1,095)
Payments	(162,659)	(124,011)	(179,221)
Interest on withholding	543	1,675	293
Current liabilities, ending balance	19,851	52,145	29,471
Noncurrent liabilities, beginning balance	44,812	51,509	54,629
Expenses	3,650	(195)	0
NPM Settlement adjustment		(5,715)	(1,419)
Reclassification from non-current liabilities	1,089	3,305	3,918
Interest on withholding	2,397	2,518	2,217
Noncurrent liabilities, ending balance	49,770	44,812	51,509
Settled Litigation
Loss Contingency Accrual [Roll Forward]
Current liabilities, beginning balance	29,241	26,322	25,348
Expenses	110,486	118,284	118,069
NPM Settlement adjustment		1,351	0
Change in MSA obligations capitalized as inventory	1,568	1,426	(1,095)
Payments	(122,977)	(118,142)	(116,343)
Interest on withholding	37	0	0
Current liabilities, ending balance	16,192	29,241	26,322
Noncurrent liabilities, beginning balance	20,094	25,809	27,571
Expenses	0	0	0
NPM Settlement adjustment		(5,715)	(1,419)
Reclassification from non-current liabilities	(2,163)	0	343
Interest on withholding	0	0	0
Noncurrent liabilities, ending balance	22,257	20,094	25,809
Pending Litigation
Loss Contingency Accrual [Roll Forward]
Current liabilities, beginning balance	22,904	3,149	59,310
Expenses	16,679	20,644	2,849
NPM Settlement adjustment		0	0
Change in MSA obligations capitalized as inventory	0	0	0
Payments	(39,682)	(5,869)	(62,878)
Interest on withholding	506	1,675	293
Current liabilities, ending balance	3,659	22,904	3,149
Noncurrent liabilities, beginning balance	24,718	25,700	27,058
Expenses	3,650	(195)	0
NPM Settlement adjustment		0	0
Reclassification from non-current liabilities	3,252	3,305	3,575
Interest on withholding	2,397	2,518	2,217
Noncurrent liabilities, ending balance	$ 27,513	$ 24,718	$ 25,700

Contingencies (Other Matters) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Liggett and Vector Tobacco \| Bonds \| Maximum
Loss Contingencies [Line Items]
Estimate of possible loss	$ 500

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash paid during the period for:
Interest	$ 108,422	$ 96,958	$ 98,754
Income taxes	46,811	52,040	16,610
Non-cash investing and financing activities:
Issuance of stock dividend	609	584	520
Non-controlling interest	0	0	2,733
Debt retired in conversion to stock	0	25,000	132,530
Embedded derivative, net retired in conversion to stock	$ 0	$ 889	$ 6,680

Related Party Transactions (Details)						1 Months Ended				3 Months Ended	12 Months Ended					120 Months Ended
Related Party Transactions (Details)	Oct. 26, 2016 USD ($) shares	Feb. 15, 2015 USD ($) shares	Feb. 03, 2015 USD ($)	Nov. 14, 2014 USD ($) shares	Nov. 04, 2011 USD ($)	Mar. 31, 2014 USD ($)	Jan. 31, 2013 USD ($) shares	Sep. 30, 2012 ft² extension	May 31, 2009 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2008 USD ($)	Dec. 31, 2015 USD ($) investment	Feb. 21, 2017	Dec. 01, 2016 $ / shares	Nov. 30, 2016 shares	Mar. 14, 2014	Dec. 31, 2013 USD ($) shares	May 31, 2013 USD ($)	Sep. 10, 2012 USD ($)	May 11, 2009 USD ($)
Related Party Transaction [Line Items]
Maturities of investment securities												$ 10,822,000	$ 5,491,000	$ 930,000
Gross realized gains on sales												3,408,000	13,727,000	275,000
Impairment of investment securities												$ 5,381,000	12,846,000	$ 0
Operating lease term												1 year
Convertible Debt \| 6.75% Variable Interest Senior Convertible Exchange Notes due 2014
Related Party Transaction [Line Items]
Interest rate				6.75%										6.75%						6.75%				6.75%
Convertible Debt \| 6.75% Variable Interest Senior Convertible Note due 2015
Related Party Transaction [Line Items]
Principal amount																								$ 50,000,000
Interest rate		6.75%
Convertible principal balance			$ 25,000,000
Ladenburg Thalmann Financial Services Inc.
Related Party Transaction [Line Items]
Investment owned (in shares) \| shares												15,191,205
Equity method ownership percentage												8.28%
Castle Brands Inc.
Related Party Transaction [Line Items]
Investment owned (in shares) \| shares												12,671,159
Morgans Hotel Group Co.
Related Party Transaction [Line Items]
Investment owned (in shares) \| shares																			2,459,788
Investment owned percent																			7.03%
Equity Method Investee \| Ladenburg Thalmann Financial Services Inc.
Related Party Transaction [Line Items]
Equity method ownership percentage												8.28%
Revenue from related parties												$ 850,000	850,000	$ 850,000
Equity Method Investee \| Ladenburg Thalmann Financial Services Inc. \| Forecast
Related Party Transaction [Line Items]
Revenue from related parties											$ 850,000
Equity Method Investee \| Ladenburg Thalmann Financial Services Inc. \| LTS Loan Due Nov 2016
Related Party Transaction [Line Items]
Debt instrument term					5 years
Loan receivable					$ 15,000,000
Interest rate on receivable					11.00%
Interest income												$ 205,000	280,000	574,000
Amount of debt surrendered or exchanged for equity in investee	$ 1,680,000
Equity Method Investee \| Ladenburg Thalmann Financial Services Inc. \| LTS Warrants
Related Party Transaction [Line Items]
Investment warrants outstanding (in shares) \| shares	1,000,000
Equity Method Investee \| Ladenburg Thalmann Financial Services Inc. \| LTS Preferred \| Series A Cumulative Redeemable Preferred Stock
Related Party Transaction [Line Items]
Investment owned (in shares) \| shares												240,000
Interest income												$ 480,000	480,000
Preferred stock dividend rate												8.00%
Liquidation preference (in dollars per share) \| $ / shares												$ 25
Equity Method Investee \| Castle Brands Inc.
Related Party Transaction [Line Items]
Revenue from related parties												$ 100,000	100,000	100,000
Equity Method Investee \| Castle Brands Inc. \| Forecast
Related Party Transaction [Line Items]
Revenue from related parties											$ 100,000
Equity Method Investee \| Castle Brands Inc. \| Convertible Debt
Related Party Transaction [Line Items]
Principal amount																					$ 200,000
Interest rate																					5.00%
Convertible share (in shares) \| shares																					222,222
President and Chief Executive Officer \| Insurance Commissions
Related Party Transaction [Line Items]
Amount of transaction												247,000	217,000	261,000
President and Chief Executive Officer \| Reserved Unit in Real Estate Venture
Related Party Transaction [Line Items]
Amount of transaction													5,200,000
President and Chief Executive Officer \| Ladenburg Thalmann Financial Services Inc. \| Compensation Paid to Vice Chairman of LTS
Related Party Transaction [Line Items]
Amount of transaction												1,250,000	1,300,000	1,375,000
President and Chief Executive Officer \| Ladenburg Thalmann Financial Services Inc. \| Director Fees Paid to Vice Chairman of LTS
Related Party Transaction [Line Items]
Amount of transaction												36,000	38,000	39,000
Executive Vice President \| Ladenburg Thalmann Financial Services Inc. \| Compensation Paid to President and CEO of LTS
Related Party Transaction [Line Items]
Amount of transaction												1,450,000	1,450,000	1,375,000
Beneficial Owner \| Dr. Phillip Frost [Member]
Related Party Transaction [Line Items]
Ownership percentage by shareholders					15.30%
Percent of ownership by management (more than 10%)																10.00%
Beneficial Owner \| Dr. Phillip Frost [Member] \| Subsequent Event
Related Party Transaction [Line Items]
Ownership percentage by shareholders																	15.30%
Investee \| Morgans Hotel Group Co.
Related Party Transaction [Line Items]
Warrants exercise price (in dollars per share) \| $ / shares																		$ 2.25
Maturities of investment securities										$ 5,535,000
Gross realized gains on sales										2,140,000
Impairment of investment securities										$ 4,772,000
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Number of investments \| investment																3
Affiliated Entity [Member] \| Entity Affiliated with Dr. Frost \| Convertible Debt \| 6.75% Variable Interest Senior Convertible Exchange Notes due 2014
Related Party Transaction [Line Items]
Principal amount									$ 50,000,000
Interest rate									6.75%
Payments for purchase of private placement									$ 38,225,000
Convertible principal balance		$ 25,000,000		$ 25,000,000		$ 25,000,000
Shares issued upon conversion (in shares) \| shares		2,455,876		2,455,877
Affiliated Entity [Member] \| Entity Affiliated with Dr. Frost \| Convertible Debt \| 5% Variable Interest Senior Convertible Notes
Related Party Transaction [Line Items]
Principal amount									$ 11,005,000
Interest rate									5.00%
Premium percentage									107.00%
Affiliated Entity [Member] \| Entity Affiliated with Dr. Frost \| Convertible Debt \| 6.75% Variable Interest Senior Convertible Note due 2015
Related Party Transaction [Line Items]
Interest expense													1,094,000
Affiliated Entity [Member] \| Frost Real Estate Holdings, LLC
Related Party Transaction [Line Items]
Area of real estate property \| ft²								12,390
Operating lease term								5 years
Number of lease extensions \| extension								2
Term of lease extensions								5 years
Monthly lease payments, year 1-4																						$ 31,000
Monthly lease payments, year 5 and thereafter																						$ 35,000
Tenant improvement allowance																							$ 220,000
Expenses from transactions with related party												380,000	380,000	$ 380,000
Affiliated Entity [Member] \| OPKO Inc.
Related Party Transaction [Line Items]
Investment owned (in shares) \| shares							726,036
Amount of transaction																$ 12,788,000
Affiliated Entity [Member] \| OPKO Inc. \| Opco Convertible Note Receivable, 3 Percent
Related Party Transaction [Line Items]
Loan receivable							$ 5,000,000
Interest rate on receivable							3.00%
Affiliated Entity [Member] \| BioCardia, Inc.
Related Party Transaction [Line Items]
Amount of transaction															$ 500,000
Affiliated Entity [Member] \| Cocrystal Pharma, Inc.
Related Party Transaction [Line Items]
Amount of transaction															$ 250,000
Son of Company's President and Chief Executive Officer \| Douglas Elliman Realty, LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party												$ 640,000	$ 453,000

Investments and Fair Value Measurements (Fair Value Measurements) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Mar. 24, 2014
Assets:
Investment securities available for sale	$ 156,903	$ 181,976
Liabilities:
Fair value of derivatives embedded within convertible debt	112,332	144,042
Long-term investments	53,197	62,726
Impairment of long-term investments	1,587	811	$ 0
Investments in real estate, net	23,640	23,318
Impairment of real estate, net	0	230	$ 0
5.5% Variable Interest Senior Convertible Debentures due 2020 \| Convertible Debt
Liabilities:
Fair value of derivatives embedded within convertible debt	$ 59,433	71,959
Interest rate	5.50%			5.50%
Equity securities
Assets:
Investment securities available for sale	$ 50,843	67,273
Mutual funds invested in fixed income securities
Assets:
Investment securities available for sale	20,582	20,111
Fair Value, Measurements, Recurring
Assets:
Investment securities available for sale	156,903	181,976
Total	453,924	292,127
Liabilities:
Fair value of derivatives embedded within convertible debt	112,332	144,042
Fair Value, Measurements, Recurring \| Equity securities
Assets:
Investment securities available for sale	50,843	67,273
Fair Value, Measurements, Recurring \| Mutual funds invested in fixed income securities
Assets:
Investment securities available for sale	20,582	20,111
Fair Value, Measurements, Recurring \| U.S. Government securities
Assets:
Investment securities available for sale	30,642	28,132
Fair Value, Measurements, Recurring \| Corporate securities
Assets:
Investment securities available for sale	36,687	41,561
Fair Value, Measurements, Recurring \| U.S. mortgage-backed securities
Assets:
Investment securities available for sale	6,500	5,790
Fair Value, Measurements, Recurring \| Commercial mortgage-backed securities
Assets:
Investment securities available for sale	1,398	8,728
Fair Value, Measurements, Recurring \| U.S. asset-backed securities
Assets:
Investment securities available for sale		8,276
Fair Value, Measurements, Recurring \| Commercial paper
Assets:
Investment securities available for sale	8,980
Fair Value, Measurements, Recurring \| Index-linked U.S. bonds
Assets:
Investment securities available for sale	770	2,105
Fair Value, Measurements, Recurring \| Foreign fixed-income securities
Assets:
Investment securities available for sale	501
Fair Value, Measurements, Recurring \| Fixed income securities
Assets:
Investment securities available for sale	85,478	94,592
Fair Value, Measurements, Recurring \| Money market funds
Assets:
Cash and cash equivalents	248,552	93,915
Fair Value, Measurements, Recurring \| Commercial paper
Assets:
Cash and cash equivalents	41,247
Fair Value, Measurements, Recurring \| Certificates of deposit
Assets:
Cash and cash equivalents	2,982	3,469
Fair Value, Measurements, Recurring \| Bonds
Assets:
Cash and cash equivalents	4,240	12,767
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Investment securities available for sale	71,425	87,384
Total	324,217	194,066
Liabilities:
Fair value of derivatives embedded within convertible debt	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity securities
Assets:
Investment securities available for sale	50,843	67,273
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Mutual funds invested in fixed income securities
Assets:
Investment securities available for sale	20,582	20,111
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Government securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Corporate securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. mortgage-backed securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Commercial mortgage-backed securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. asset-backed securities
Assets:
Investment securities available for sale		0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Commercial paper
Assets:
Investment securities available for sale	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Index-linked U.S. bonds
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Foreign fixed-income securities
Assets:
Investment securities available for sale	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fixed income securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Money market funds
Assets:
Cash and cash equivalents	248,552	93,915
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Commercial paper
Assets:
Cash and cash equivalents	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Certificates of deposit
Assets:
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Bonds
Assets:
Cash and cash equivalents	4,240	12,767
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets:
Investment securities available for sale	85,478	94,592
Total	129,707	98,061
Liabilities:
Fair value of derivatives embedded within convertible debt	0	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Equity securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Mutual funds invested in fixed income securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. Government securities
Assets:
Investment securities available for sale	30,642	28,132
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate securities
Assets:
Investment securities available for sale	36,687	41,561
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. mortgage-backed securities
Assets:
Investment securities available for sale	6,500	5,790
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Commercial mortgage-backed securities
Assets:
Investment securities available for sale	1,398	8,728
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. asset-backed securities
Assets:
Investment securities available for sale		8,276
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Commercial paper
Assets:
Investment securities available for sale	8,980
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Index-linked U.S. bonds
Assets:
Investment securities available for sale	770	2,105
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Foreign fixed-income securities
Assets:
Investment securities available for sale	501
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Fixed income securities
Assets:
Investment securities available for sale	85,478	94,592
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Money market funds
Assets:
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Commercial paper
Assets:
Cash and cash equivalents	41,247
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Certificates of deposit
Assets:
Cash and cash equivalents	2,982	3,469
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Bonds
Assets:
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3)
Assets:
Investment securities available for sale	0	0
Total	0	0
Liabilities:
Fair value of derivatives embedded within convertible debt	112,332	144,042
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Equity securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Mutual funds invested in fixed income securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. Government securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Corporate securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. mortgage-backed securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Commercial mortgage-backed securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. asset-backed securities
Assets:
Investment securities available for sale		0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Commercial paper
Assets:
Investment securities available for sale	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Index-linked U.S. bonds
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Foreign fixed-income securities
Assets:
Investment securities available for sale	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Fixed income securities
Assets:
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Money market funds
Assets:
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Commercial paper
Assets:
Cash and cash equivalents	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Certificates of deposit
Assets:
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Bonds
Assets:
Cash and cash equivalents	0	0
Fair Value, Measurements, Nonrecurring
Liabilities:
Long-term investments, fair value	6,396	11,189
Real estate held for sale, fair value		3,780
Nonrecurring nonfinancial assets subject to fair value measurements	6,396	14,969
Gain (loss) on long-term investments	(1,203)	(811)
Gain (loss) on real estate held for sale		(230)
Gain (loss) on long-term investments and real estate held for sale	(1,203)	(1,041)
Long-term investments	7,599	12,000
Impairment of long-term investments	1,203	811
Investments in real estate, net		4,010
Impairment of real estate, net		230
Fair Value, Measurements, Nonrecurring \| Significant Unobservable Inputs (Level 3)
Liabilities:
Long-term investments, fair value	6,396	11,189
Real estate held for sale, fair value		3,780
Nonrecurring nonfinancial assets subject to fair value measurements	$ 6,396	$ 14,969

Investments and Fair Value Measurements (Quantitative Information about Level 3 Fair Value Measurements) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt	$ 112,332,000	$ 144,042,000
Stock price (in dollars per share)	$ 22.74	$ 22.47	$ 19.33
Nonrecurring nonfinancial assets	$ 0	$ 0
Significant Unobservable Inputs (Level 3) \| Discounted cash flow
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt	$ 112,332,000	$ 144,042,000
Assumed annual stock dividend	5.00%	5.00%
Assumed annual cash dividend (in dollars per share)	$ 1.60	$ 1.60
Stock price (in dollars per share)	$ 22.74	$ 23.59
Convertible trading price (as a percentage of par value)	114.69%	114.30%
Volatility	19.47%	18.30%
Implied credit spread	5.00%	5.25%
Significant Unobservable Inputs (Level 3) \| Discounted cash flow \| Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Implied credit spread	4.50%	5.00%
Significant Unobservable Inputs (Level 3) \| Discounted cash flow \| Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Implied credit spread	5.50%	5.50%

Segment Information (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

$ 412,772

$ 459,104

$ 438,273

$ 380,800

$ 430,330

$ 449,934

$ 416,173

$ 360,760

$ 1,690,949

$ 1,657,197

$ 1,591,315

30,754

$ 69,364

$ 70,720

$ 62,159

31,032

$ 69,367

$ 55,803

$ 43,718

232,997

199,920

212,438

5,200

2,001

4,103

1,404,035

1,280,615

1,404,035

1,280,615

1,389,042

22,359

25,654

24,499

Income (expense) from MSA/NPM settlement

26,691

10,977

23,404

(247)

4,364

1,419

Litigation settlement and judgment expense

20,000

20,072

2,475

Pension settlement expense

7,257

1,607

Investments in real estate ventures

221,258

217,168

221,258

217,168

163,460

Investment securities available for sale

156,903

181,976

156,903

181,976

Long-term investments

53,197

62,726

53,197

62,726

Investments accounted for under the equity method

17,721

21,495

17,721

21,495

Corporate and Other

(26,894)

(20,523)

(15,911)

502,268

350,499

502,268

350,499

556,975

1,650

1,742

1,410

Investment securities available for sale

7,225

Cash

280,691

112,130

280,691

112,130

213,227

156,903

181,976

156,903

181,976

269,100

Long-term investments

34,975

62,225

34,975

62,225

52,025

Investments accounted for under the equity method

17,721

21,495

17,721

21,495

20,484

Tobacco

^[1]

1,011,620

1,017,761

1,021,259

Tobacco | Operating Segments

7,257

1,011,620

1,017,761

1,021,259

238,293

209,393

199,119

328,349

344,033

328,349

344,033

325,870

10,224

11,323

10,885

6,445

3,730

9,256

E-Cigarettes

E-Cigarettes | Operating Segments

(776)

(1,970)

8,589

(776)

(1,970)

8,589

(1,403)

(13,037)

(13,124)

985

8,139

Real Estate

Real Estate | Operating Segments

680,105

641,406

561,467

680,105

641,406

561,467

23,001

24,087

42,354

5,200

2,001

4,103

$ 573,350

$ 585,098

573,350

585,098

498,058

10,485

12,589

12,204