View Filing Data

$ 415,208

$ 380,800

Operating, selling, administrative and general expenses

275,923

236,422

84,769

79,828

1,585

2,350

Loss on extinguishment of debt

Operating income

52,931

62,159

Other income (expenses):

Interest expense

(46,221)

(30,720)

(34,110)

Change in fair value of derivatives embedded within convertible debt

8,571

9,694

Equity in earnings (losses) from real estate ventures

11,113

(507)

Equity in losses from investments

(1,061)

(1,671)

Gain on sale of investment securities available for sale

150

567

Impairment of investment securities available for sale

(39)

(4,813)

Other, net

1,659

1,047

(Loss) income before provision for income taxes

(7,007)

35,756

Income tax (benefit) expense

(2,782)

14,363

Net (loss) income

(4,225)

21,393

Net income attributed to non-controlling interest

(2)

(2,055)

Net (loss) income attributed to Vector Group Ltd.

$ (4,227)

$ 19,338

Per basic common share:

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

$ (0.03)

$ 0.15

Per diluted common share:

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

(0.03)

0.15

Cash distributions and dividends declared per share (in dollars per share)

$ 0.4

$ 0.38

Tobacco

Revenues

^[1]

$ 257,454

$ 221,015

^[1]

175,754

136,738

1,585

2,350

Real Estate

Revenues

157,754

159,747

100,169

99,678

E-Cigarettes

Revenues

Summary of Significant Accounting Policies

$ 0

$ 6

[1]	Revenues and cost of sales include federal excise taxes of $109,368 and $90,846, respectively.

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Tax portion of revenues and cost of goods sold	$ 109,368	$ 90,846

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (4,225)	$ 21,393
Net unrealized losses on investment securities available for sale:
Change in net unrealized losses	(176)	(4,634)
Net unrealized (gains) losses reclassified into net (loss) income	(111)	4,246
Net unrealized losses on investment securities available for sale	(287)	(388)
Net unrealized gains (losses) on long-term investments accounted for under the equity method:
Net change in forward contracts	1	9
Net change in pension-related amounts
Amortization of loss	488	445
Net change in pension-related amounts	488	445
Other comprehensive income	202	66
Income tax effect on:
Change in net unrealized losses on investment securities	76	1,908
Net unrealized (gains) losses reclassified into net (loss) income on investment securities	45	(1,745)
Forward contracts	(1)	(3)
Pension-related amounts	(198)	(183)
Income tax provision on other comprehensive income	(78)	(23)
Other comprehensive income, net of tax	124	43
Comprehensive (loss) income	(4,101)	21,436
Comprehensive income attributed to non-controlling interest	(2)	(2,055)
Comprehensive (loss) income attributed to Vector Group Ltd.	$ (4,103)	$ 19,381

Condensed Consolidated Statements of Stockholders' Deficiency $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($) shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares) \| shares	127,739,481
Beginning Balance	$ (253,272)
Net (loss) income	(4,225)
Total other comprehensive income	124
Comprehensive (loss) income	(4,101)
Distributions and dividends on common stock	(53,167)
Issuance of common stock	43,230
Cancellation of shares under share lending agreement	0
Stock-based compensation	3,008
Distributions to non-controlling interest	32
Ending Balance	$ (264,270)
Beginning Balance (in shares) \| shares	129,434,081
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares) \| shares	127,739,481
Beginning Balance	$ 12,774
Issuance of common stock (in shares) \| shares	2,000,000
Issuance of common stock	$ 200
Cancellation of shares under share lending agreement (in shares) \| shares	(305,400)
Cancellation of shares under share lending agreement	$ (31)
Ending Balance	$ 12,943
Beginning Balance (in shares) \| shares	129,434,081
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 0
Distributions and dividends on common stock	(46,069)
Issuance of common stock	43,030
Cancellation of shares under share lending agreement	31
Stock-based compensation	3,008
Ending Balance	0
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(333,529)
Net (loss) income	(4,227)
Distributions and dividends on common stock	(7,098)
Ending Balance	(344,854)
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(11,245)
Total other comprehensive income	124
Ending Balance	(11,121)
Non-controlling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	78,728
Net (loss) income	2
Distributions to non-controlling interest	32
Ending Balance	$ 78,762

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Cash Flows [Abstract]
Net cash provided by (used in) operating activities	$ 27,896	$ (4,936)
Cash flows from investing activities:
Sale of investment securities	13,456	51,218
Maturities of investment securities	7,174	343
Purchase of investment securities	(14,974)	(29,112)
Purchase of long-term investments	(22,400)	0
Investments in real estate ventures	(1,436)	(5,795)
Distributions from investments in real estate ventures	0	12
Increase in cash surrender value of life insurance policies	(49)	(62)
Decrease (increase) in restricted assets	1,156	(3,017)
Issuance of notes receivable	(1,500)	0
Proceeds from sale of fixed assets	2	0
Capital expenditures	(4,588)	(3,915)
Pay downs of investment securities	864	2,174
Investments in real estate, net	(70)	(49)
Net cash (used in) provided by investing activities	(22,365)	11,797
Cash flows from financing activities:
Proceeds from issuance of debt	850,000	57
Deferred financing costs	(19,200)	0
Repayments of debt	(835,697)	(1,576)
Borrowings under revolver	39,956	59,426
Repayments on revolver	(68,305)	(41,482)
Dividends and distributions on common stock	(52,358)	(48,876)
Contributions from non-controlling interest	0	248
Distributions to non-controlling interest	0	(5,978)
Proceeds from issuance of Vector stock	43,230	0
Net cash used in financing activities	(42,374)	(38,181)
Net decrease in cash and cash equivalents	(36,843)	(31,320)
Cash and cash equivalents, beginning of period	393,530	240,368
Cash and cash equivalents, end of period	$ 356,687	$ 209,048

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


(a)	Basis of Presentation:

The condensed 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.

The unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and, in management's opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair statement of the results for the periods presented. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission. The consolidated results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the entire year.


(b)	Distributions and Dividends on Common Stock:

The Company records distributions on its common stock as dividends in its condensed 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 periods presented.


(c)	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.

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.


(d)	Earnings Per Share (“EPS”):

Information concerning the Company's common stock has been adjusted to give retroactive effect to the 5% stock dividend paid to Company stockholders on September 29, 2016. All per share amounts and references to share amounts have been updated to reflect the retrospective effect of the stock dividends.

Net (loss) income for purposes of determining basic and diluted EPS was as follows:



	Three Months Ended
	March 31,
	2017			2016
Net (loss) income attributed to Vector Group Ltd.	$	(4,227	)	$	19,338
Income attributed to participating securities	—			(633		)
Net (loss) income available to common shares attributed to Vector Group Ltd.	$	(4,227	)	$	18,705

Basic and diluted EPS were calculated using the following common shares:



	Three Months Ended
	March 31,
	2017	2016
Weighted-average shares for basic EPS	125,568,396	123,961,803
Plus incremental shares related to stock options and non-vested restricted stock	—	204,145
Weighted-average shares for diluted EPS	125,568,396	124,165,948

The following were outstanding during the three months ended March 31, 2017 and 2016, but were not included in the computation of diluted EPS because the effect was anti-dilutive.



	Three Months Ended
	March 31,
	2017		2016
Weighted-average shares of non-vested restricted stock	1,959,376		1,260,000
Weighted-average expense per share	$	19.14	$	21.67
Weighted-average number of shares issuable upon conversion of debt	26,140,250		26,140,251
Weighted-average conversion price	$	18.70	$	18.70


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

The Company has estimated the fair 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 March 31, 2017, the range of estimated fair values of the Company's embedded derivatives was between $103,371 and $104,600. The Company recorded the fair value of its embedded derivatives at the approximate midpoint of the range at $103,761 as of March 31, 2017. At December 31, 2016, the range of estimated fair values of the Company's embedded derivatives was between $111,653 and $113,090. The Company recorded the fair value of its embedded derivatives at the midpoint of the range at $112,332 as of December 31, 2016. The estimated fair value of the Company's embedded derivatives could change significantly based on future market conditions. (See Note 6.)


(f)	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.


(g)	Other, Net:

Other, net consisted of:



	Three Months Ended
	March 31,
	2017			2016
Interest and dividend income	$	1,745		$	1,324
Loss on long-term investment	(35		)	—
Impairment of long-term investments	—			(282		)
Other (expense) income	(51		)	5
Other, net	$	1,659		$	1,047


(h)	Other Current Liabilities:

Other current liabilities consisted of:



	March 31, 2017		December 31, 2016
Accounts payable	$	11,170	$	10,573
Accrued promotional expenses	24,188		23,763
Accrued excise and payroll taxes payable, net	20,802		10,044
Accrued interest	20,114		35,449
Commissions payable	16,732		6,164
Accrued salary and benefits	13,232		26,958
Other current liabilities	18,868		22,901
Total other current liabilities	$	125,106	$	135,852


(i)	Goodwill and Other Intangible Assets, Net:

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



	March 31, 2017		December 31, 2016
Goodwill	$	70,815	$	70,815

Indefinite life intangibles:
Intangible asset associated with benefit under the MSA	107,511		107,511
Trademark - Douglas Elliman	80,000		80,000

Intangibles with a finite life, net	3,227		3,592

Total goodwill and other intangible assets, net	$	261,553	$	261,918


(j)	New Accounting Pronouncements:

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). ASU 2017-07 provides guidance that require an employer to report the service cost component separate from the other components of net benefit pension costs. The employer is required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement must be disclosed. The amendments of this ASU are effective for annual reporting periods beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. Other than the revised statement of operations presentation, the adoption of ASU 2017-07 is not expected to have a material impact on the Company's condensed consolidated financial statements.

In November 2016, the FASB issued 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 condensed 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 adoption of ASU 2016-17 had no impact on the Company’s condensed 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 condensed 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. The Company adopted ASU 2016-09 in the first quarter of 2017 and elected to apply this adoption prospectively. Prior periods have not been adjusted. See Note 9 for information regarding the impact on the Company's condensed 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, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-9”), 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. In May 2014, FASB issued ASU 2014-9 that 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. As amended by ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date the new standard is effective for annual reporting periods beginning after December 15, 2017, 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 has not yet selected a transition method. The Company is currently evaluating the method and impact the adoption of ASU 2016-08 and ASU 2014-09 will have on the Company's condensed 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 is effective for the Company’s fiscal year beginning January 1, 2017 and subsequent interim periods. The adoption of ASU 2016-07 did not have a material effect on the Company’s condensed consolidated financial statements.

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 adoption of ASU 2016-06 had no impact on the Company's condensed 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 condensed consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such these investments may be measured at cost. ASU 2016-01 will be effective for the Company’s fiscal year beginning January 1, 2018 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-01 will have on the Company’s condensed consolidated financial statements.

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 were effective for annual periods beginning after December 15, 2016 and interim periods within those reporting periods. The adoption of ASU 2014-15 did not have a material effect on the Company’s condensed consolidated financial statements.

Inventories

3 Months Ended

Mar. 31, 2017

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories consist of:



	March 31, 2017			December 31, 2016
Leaf tobacco	$	43,111		$	46,253
Other raw materials	3,245			3,733
Work-in-process	430			633
Finished goods	65,862			65,052
Inventories at current cost	112,648			115,671
LIFO adjustments	(25,687		)	(25,837		)
	$	86,961		$	89,834

All of the Company's inventories at March 31, 2017 and December 31, 2016 are reported under the LIFO method. The $25,687 LIFO adjustment as of March 31, 2017 decreases the current cost of inventories by $17,632 for Leaf tobacco, $215 for Other raw materials, $29 for Work-in-process and $7,811 for Finished goods. The $25,837 LIFO adjustment as of December 31, 2016 decreased 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.

Liggett enters into purchase commitments with third-party providers for leaf tobacco that will be used entirely for future production. The future quantities of leaf tobacco and prices are established at the date of the commitments. At March 31, 2017, Liggett had tobacco purchase commitments of approximately $6,963. Liggett has a single source supply agreement for reduced ignition propensity cigarette paper through 2019.

Each period, the Company capitalizes in inventory that portion of its MSA liability that relates to cigarettes shipped to public warehouses but not sold. The amount of capitalized MSA cost in “Finished goods” inventory was $17,554 and $17,364 at March 31, 2017 and December 31, 2016, respectively. Federal excise tax in inventory was $26,395 and $25,888 at March 31, 2017 and December 31, 2016.

Investment Securities Available for Sale

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable equity securities	$	34,944	$	15,481	$	—		$	50,425
Mutual funds invested in fixed income securities	20,620		106		(1		)	20,725
Marketable debt securities	78,811		270		—			79,081
Total investment securities available for sale	$	134,375	$	15,857	$	(1	)	$	150,231

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 table below summarizes the maturity dates of marketable debt securities at March 31, 2017.



Investment Type:	Market Value		Under 1 Year		1 Year up to 5 Years		More than 5 Years
U.S. Government securities	$	28,494	$	—	$	28,494	$	—
Corporate securities	38,877		7,035		31,842		—
U.S. mortgage-backed securities	6,043		—		31		6,012
Commercial mortgage-backed securities	843		—		—		843
Commercial paper	1,999		1,999		—		—
Index-linked U.S. bonds	2,325		—		2,325		—
Foreign fixed-income securities	500		—		500		—
Total marketable debt securities by maturity dates	$	79,081	$	9,034	$	63,192	$	6,855

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
March 31, 2017
Mutual funds invested in fixed income securities	$	5,167	$	(1	)	$	—	$	—	$	5,167	$	(1	)
	$	5,167	$	(1	)	$	—	$	—	$	5,167	$	(1	)

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	)

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

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



	Three Months Ended
	March 31,
	2017			2016
Gross realized gains on sales	$	215		$	759
Gross realized losses on sales	(65		)	(192		)
Gains on sale of investment securities available for sale	$	150		$	567

Gross realized losses on other-than-temporary impairments	$	(39	)	$	(4,813	)

The Company recorded an “Other-than-temporary impairment” charge of $39 and $4,813 during the three months ended March 31, 2017 and 2016, respectively. The largest component of the charge for the three months ended March 31, 2016 was $4,772 related to an investment in the common stock of Morgans Hotel Group Co. (“MHGC”), a company where Vector's President and Chief Executive Officer served as Chairman of the Board of Directors until December 1, 2016 when MHGC merged with another company. As a result, the common shares of MHGC ceased to be outstanding.

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.

Proceeds from investment securities sales totaled $13,456 and $51,218 and proceeds from early redemptions by issuers totaled $8,038 and $2,517 in the three months ended March 31, 2017 and 2016, respectively, mainly from sales of Corporate securities and U.S. Government securities.

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

Long-Term Investments

3 Months Ended

Mar. 31, 2017

Long-term Investments [Abstract]

Long-Term Investments

LONG-TERM INVESTMENTS

Long-term investments consisted of the following:



	March 31, 2017		December 31, 2016
Investments accounted at cost	$	57,376	$	35,476
Investments accounted for under the equity method	16,420		17,721
	$	73,796	$	53,197

(a) Cost-Method Investments:

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



	March 31, 2017				December 31, 2016
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Investment partnerships	$	57,376	$	64,053	$	34,975	$	40,569
Real estate partnership	—		—		501		494
	$	57,376	$	64,053	$	35,476	$	41,063

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 condensed 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 $21,400 in five new investment funds and made an additional contribution of $1,000 to one of its existing investments during the three months ended March 31, 2017. There were no cash contributions during the three months ended March 31, 2016. The Company received cash distributions of $466 and $1,000 from the Company's investments in long-term investments under the cost method for the three months ended March 31, 2017 and 2016, respectively.

The long-term investments are carried on the condensed consolidated balance sheet at cost. The fair value determination disclosed above would be classified as Level 3 under fair value hierarchy disclosed in Note 10 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 their investment portfolio.

(b) Equity-Method Investments:

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



	March 31, 2017		December 31, 2016
Indian Creek Investors LP ("Indian Creek")	$	4,212	$	5,248
Boyar Value Fund ("Boyar")	8,138		7,816
Ladenburg Thalmann Financial Services Inc. ("LTS")	4,070		4,657
Castle Brands, Inc. ("Castle")	—		—
	$	16,420	$	17,721

At March 31, 2017, the Company's ownership percentages in Indian Creek, Boyar, LTS and Castle were 20.15%, 31.99%, 8.05% and 7.87%, respectively. The Company accounted for its 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 its 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 March 31, 2017, was $8,138, equal to its carrying value. Ladenburg Thalmann Fund Management, LLC, an indirect subsidiary of LTS, is the manager of Boyar.

At March 31, 2017, the aggregate values of the LTS and Castle investments based on the quoted market price were $37,674 and $19,640, respectively.

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 $240 and $285 from the Company's investments in long-term investments under the equity method for the three months ended March 31, 2017 and 2016, respectively. The Company recognized equity in losses from investments under the equity method of $1,061 and $1,671 for the three months ended March 31, 2017 and 2016, respectively. The Company has suspended its recognition of equity in losses from Castle to the extent such losses exceed its basis.

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 condensed consolidated statements of operations. The Company will continue to perform additional assessments to determine the impact, if any, on the Company’s condensed consolidated financial statements. Thus, future impairment charges may occur.

The long-term investments are carried on the condensed 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 10 if such assets were recorded on the condensed consolidated balance sheet at fair value.

New Valley LLC

3 Months Ended

Mar. 31, 2017

Real Estate [Abstract]

New Valley LLC

NEW VALLEY LLC

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	March 31, 2017		December 31, 2016
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	137,529	$	131,770
All other U.S. areas	15.0% - 48.5%	42,761		40,950
		180,290		172,720
Apartment Buildings:
All other U.S. areas	7.6% - 16.3%	8,212		8,287
		8,212		8,287
Hotels:
New York City SMSA	5.2%	21,208		21,895
International	49.0%	2,486		3,037
		23,694		24,932
Commercial:
New York City SMSA	49.0%	2,944		3,290
All other U.S. areas	2.1%	10,000		10,000
		12,944		13,290

Other	50.0%	2,109		2,029
Investments in real estate ventures		$	227,249	$	221,258

Contributions:

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



	March 31, 2017		March 31, 2016
Condominium and Mixed Use Development:
New York City SMSA	$	91	$	1,102
All other U.S. areas	1,345		3,975
	1,436		5,077
Hotels:
New York City SMSA	—		718
	—		718

Total contributions	$	1,436	$	5,795

New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners during the three months ended March 31, 2017 and March 31, 2016. 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:



	March 31, 2017		March 31, 2016
Condominium and Mixed Use Development:
New York City SMSA	$	6,200	$	258
	6,200		258
Apartment Buildings:
All other U.S. areas	152		—
	152		—
Commercial:
New York City SMSA	101		135
	101		135

Other	550		550
Total distributions	$	7,003	$	943

Of the distributions received by New Valley from its investment in real estate ventures, $7,003 and $931 were from distributions of earnings for the three months ended March 31, 2017 and March 31, 2016, respectively, and $12 was a return of capital for the three months ended March 31, 2016.

Equity in Earnings (Losses) from Real Estate Ventures:

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



	March 31, 2017			March 31, 2016
Condominium and Mixed Use Development:
New York City SMSA	$	12,180		$	(669	)
All other U.S. areas	(292		)	(514		)
	11,888			(1,183		)
Apartment Buildings:
All other U.S. areas	77			516
	77			516
Hotels:
New York City SMSA	(687		)	(580		)
International	(550		)	(75		)
	(1,237		)	(655		)
Commercial:
New York City SMSA	(245		)	212
	(245		)	212

Other	630			603
Total equity in earnings (losses) from real estate ventures	$	11,113		$	(507	)

Investment in Real Estate Ventures Entered into during 2017:

In March 2017, New Valley invested $1,170 for an approximate 15.0% interest in Witkoff GP Partners LLC. The purpose of the joint venture is to use contributed capital to invest in other real estate ventures. The 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 Witkoff GP Partners LLC was $1,174 at March 31, 2017. New Valley has committed to contribute up to an additional $18,830 to the venture.

VIE Consideration:

The Company has determined that New Valley is the primary beneficiary of two real state ventures because it controls the activities that most significantly impact economic performance of each of the two real estate ventures. Consequently, New Valley consolidates these variable interest entities ("VIEs").

The carrying amount of the consolidated assets of the VIEs was $14,456 and $14,385 as of March 31, 2017 and December 31, 2016, respectively. Those assets are owned by the VIEs, not the Company. Neither of the two consolidated VIEs had recourse liabilities as of March 31, 2017 and December 31, 2016. 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. Therefore, New Valley's investment in such real estate ventures has been accounted for under the equity method of accounting.

Maximum Exposure to Loss:

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



	March 31, 2017
Condominium and Mixed Use Development:
New York City SMSA	$	139,093
All other U.S. areas	48,523
	187,616
Apartment Buildings:
All other U.S. areas	8,212
	8,212
Hotels:
New York City SMSA	21,208
International	2,486
	23,694
Commercial:
New York City SMSA	2,944
All other U.S. areas	10,000
	12,944
Other	2,109
Total maximum exposure to loss	$	234,575

New Valley capitalized $446 and $3,520 of interest expense into the carrying value of its ventures whose projects were currently under development during the three months ended March 31, 2017 and March 31, 2016, respectively.

Douglas Elliman has been engaged by the developers as the sole broker or the co-broker for several of the real estate ventures that New Valley owns an interest. Douglas Elliman earned gross commissions of approximately $3,310 and $2,405 from these projects for the three months ended March 31, 2017 and March 31, 2016, respectively.

Combined Financial Statements for Unconsolidated Subsidiaries:

Pursuant to Rule 10-01(b), the following summarized financial data for unconsolidated subsidiaries includes information for the following: Condominium and Mixed Use Developments (10 Madison West and 11 Beach Street). New Valley has elected a one-month lag reporting period for 10 Madison and 11 Beach Street.

Condominium and Mixed Use Development:



	Three Months Ended March 31,
	2017		2016
Income Statement
Revenue	$	128,278	$	61,926
Cost of Goods Sold	102,195		32,803
Other Expenses	2,526		389
Income from continuing operations	$	23,557	$	28,734

Investments in Real Estate, net:

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



	March 31, 2017		December 31, 2016
Escena, net	$	10,700	$	10,792
Sagaponack	12,918		12,848
Investments in real estate, net	$	23,618	$	23,640

Escena. The assets of “Escena, net” were as follows:



	March 31, 2017			December 31, 2016
Land and land improvements	$	8,907		$	8,907
Building and building improvements	1,878			1,878
Other	2,038			2,028
	12,823			12,813
Less accumulated depreciation	(2,123		)	(2,021		)
	$	10,700		$	10,792

New Valley recorded operating income of $553 and $508 for the three months ended March 31, 2017 and 2016, respectively, from Escena.

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 condensed consolidated financial statements of the Company. As of March 31, 2017, the assets of Sagaponack consisted of land and land improvements of $12,918.

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.

Notes Payable, Long-Term Debt and Other Obligations

Notes Payable, Long Term Debt and Other Obligations

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS

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



	March 31, 2017			December 31, 2016
Vector:
7.75% Senior Secured Notes due 2021, including premium of $0 and $13,954	$	—		$	848,954
6.125% Senior Secured Notes due 2025	850,000			—
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $100,513 and $108,480*	129,487			121,520
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $67,162 and $71,247*	191,588			187,503
Liggett:
Revolving credit facility	8,887			37,163
Term loan under credit facility	2,925			2,999
Equipment loans	3,874			4,519
Other	541			591
Notes payable, long-term debt and other obligations	1,187,302			1,203,249
Less:
Debt issuance costs	(32,535		)	(30,798		)
Total notes payable, long-term debt and other obligations	1,154,767			1,172,451
Less:
Current maturities	(10,996		)	(39,508		)
Amount due after one year	$	1,143,771		$	1,132,943

______________________

* The fair value of the derivatives embedded within the 7.5% Variable Interest Senior Convertible Notes ($47,650 at March 31, 2017 and $52,899 at December 31, 2016, respectively) and the 5.5% Variable Interest Senior Convertible Debentures ($56,111 at March 31, 2017 and $59,433 at December 31, 2016, respectively), is separately classified as a derivative liability in the condensed consolidated balance sheets.

Senior Secured Notes - Vector:

7.75% Senior Secured Notes due 2021 - Vector:

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.

The 7.75% Senior Secured Notes paid interest on a semi-annual basis at a rate of 7.75% per year and had a maturity date of 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 12.) 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.

On January 27, 2017, the Company completed the sale of $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 Company used the net cash proceeds from the 6.125% Senior Secured 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.

On February 26, 2017, the Company retired the outstanding $835,000 principal amount of its 7.75% Senior Secured Notes at a premium of 103.875%, plus accrued and unpaid interest. The Company accounted for the redemption of the 7.75% senior secured notes as an extinguishment of the debt. The Company incurred a loss on the extinguishment of debt of $34,110 for the three months ended March 31, 2017, which is comprised of $32,356 of redemption premium and tender offer costs as well as net non-cash interest expense of $1,754.

6.125% Senior Secured Notes due 2025 — Vector

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. 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. Prior to February 1, 2020, the Company may redeem some or all of the 6.125% Senior Secured Notes at any time at a make-whole redemption price and, thereafter, 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 12.) 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. As of March 31, 2017, the Company was in compliance with all debt covenants.

Variable Interest Senior Convertible Debt — Vector:

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. As of December 31, 2016, 1,579,879 shares were lent under the 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 amortized to interest expense over the term of the notes. In March 2017, 305,400 shares were returned but no cash was exchanged. As of March 31, 2017, 1,274,479 shares were outstanding on the Share Lending Agreement and had a fair value of $29,058. 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 $1,983 and $2,140 at March 31, 2017 and December 31, 2016, respectively.

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

The conversion rates for all convertible debt outstanding as of March 31, 2017 and December 31, 2016, are summarized below:



	March 31, 2017			December 31, 2016
	Conversion Price		Shares per $1,000	Conversion Price		Shares per $1,000

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

Revolving Credit Facility and Term Loan Under Credit Facility - Liggett:

As of March 31, 2017, a total of $11,812 was outstanding under the revolving and term loan portions of the credit facility. Availability, as determined under the facility, was approximately $42,100 based on eligible collateral at March 31, 2017.

Non-Cash Interest Expense - Vector:



	Three Months Ended
	March 31,
	2017		2016
Amortization of debt discount, net	$	11,836	$	7,956
Amortization of debt issuance costs	1,970		1,168
Loss on extinguishment of 7.75% Senior Secured Notes	1,754		—
	$	15,560	$	9,124

Fair Value of Notes Payable and Long-Term Debt:



	March 31, 2017					December 31, 2016
	Carrying			Fair		Carrying			Fair
	Value			Value		Value			Value
Notes payable and long-term debt	$	1,187,302	(1)	$	1,509,359	$	1,203,249	(1)	$	1,570,732

______________________

⁽¹⁾The carrying value does not include the carrying value of the embedded derivative. See Note 10.

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 10 if such liabilities were recorded on the condensed 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 the Company's Form 10-K. The Company used a derived price based upon quoted market prices and trade activity as of March 31, 2017 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.

Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

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 three months ended March 31, 2017 and 2016, Liggett incurred tobacco product liability legal expenses and costs totaling $3,137 and $4,171, respectively. 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 March 31, 2017, 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 7: (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 March 31, 2017, 25 Engle progeny cases where Liggett was a defendant at trial resulted in verdicts. There have been 16 verdicts 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 five 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 7 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). In December 2016, Liggett entered into an agreement to settle 124 Engle progeny cases for $17,650 (see Engle Progeny Settlement II below). As of March 31, 2017, Liggett (and in certain cases the Company) had, on an individual basis, settled 179 Engle progeny cases for approximately $6,240 in the aggregate, two of which occurred in the first quarter of 2017.

Individual Actions

As of March 31, 2017, there were 34 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		6
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. In December 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, the Company recorded a charge of $17,650 in the fourth quarter of 2016.

Notwithstanding the comprehensive nature of the Engle Progeny Settlements, approximately 115 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 March 31, 2017, 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 occurred on March 14, 2017. A decision is pending.
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 Fourth District Court of Appeal reversed the judgment in its entirety and remanded the case for a new trial. As a result, the $1,530 compensatory award against Liggett was also reversed. The plaintiff filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. The court declined to accept jurisdiction. This case was settled in December 2016 as part of Engle Progeny Settlement II.
December 2012	Buchanan v. R.J. Reynolds	Leon	2,750	—	Liggett satisfied the judgment and the case is concluded.
May 2013	D. Cohen v. R.J. Reynolds	Palm Beach	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
August 2013	Rizzuto v. R.J. Reynolds	Hernando	3,479	—	Liggett settled its portion of the judgment for $1,500 and the case is concluded as to Liggett.
August 2014	Irimi v. R.J. Reynolds	Broward	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
October 2014	Lambert v. R.J. Reynolds	Pinellas	3,600	9,500	Liggett satisfied the judgment and the case is concluded.
November 2014	Boatright v. R.J. Reynolds	Polk	—	300	In November 2014, the jury awarded compensatory damages in the amount of $15,000 with 15% fault apportioned to plaintiff and 85% to Philip Morris. A joint and several judgment was entered in the amount of $12,750 on the compensatory damages. Judgment was also entered against Liggett for $300 in punitive damages. Defendants appealed and plaintiff cross-appealed. The Second District Court of Appeal reversed the trial court's decision to reduce the judgment by plaintiff's assessed fault and affirmed as to all other issues on that appeal. In a separate appeal, the Second District Court of Appeal also reversed the trial court's ruling that plaintiff's proposals for settlement were invalid and remanded for determination of attorney's fees.
					Any potential liability as a result of the pending appeals is included in the amount Liggett will pay under Engle Progeny Settlement II.
June 2015	Caprio v. R.J. Reynolds	Broward	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
March 2017	Santoro v. R.J. Reynolds	Broward	160	15	In April 2017, a joint and several judgment was entered against R.J. Reynolds, Philip Morris and Liggett for $1,027, for compensatory damages. Judgment was also entered against Liggett for $15 in punitive damages. Post trial motions are pending but have not been set for hearing.
Total Damages Awarded:			24,505	10,815
Amounts accrued, paid or compromised:			(24,328)	(10,800)
Damages remaining on Appeal:			$177	$15
(1) Compensatory damages are adjusted to reflect the jury's allocation of comparative fault and only include Liggett's jury allocated share, regardless of whether a judgment was joint and several. The amounts listed above do not include attorneys' fees or statutory interest.
(2) See Exhibit 99.1 for a more complete description of the cases currently on appeal.

Through March 31, 2017, 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 7, 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 January 2016, in Marotta, the Fourth District Court of Appeal disagreed with the Graham panel's decision. In April 2017, the Florida Supreme Court held that federal law does not implicitly preempt state law tort claims of strict liability and negligence by Engle progeny plaintiffs.

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 occurred on March 8, 2017. 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 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 two cases pending where Liggett is the only remaining defendant. Each of these cases is an Individual Action. In Hausrath, a New York case, a status conference is scheduled for June 1, 2017. There has been no recent activity in Cowart, a Florida case. 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 March 31, 2017, 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 March 31, 2017, 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, the Company's consolidated financial position, results of operations and cash flows could be adversely affected.

Upcoming Trials

As of March 31, 2017, there was one Individual Action scheduled for trial through March 31, 2018, where Liggett (and/or the Company) is a named defendant. Trial dates are 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 $118,600 2016 MSA obligation, the balance of which was 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 - 2016. 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 - 2016, 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 - 2016. 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. In April 2017, both Rhode Island and Oregon joined the term sheet settlement.

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 from the Pennsylvania and Maryland decisions, and in February 2017, the Missouri Supreme Court affirmed the trial court’s order reducing the award. In September 2016, the New Mexico trial court refused to vacate the award and reduced Liggett's recovery by approximately $150. The Participating Manufacturers appealed that decision to the New Mexico Court of Appeals. Oral argument has not been scheduled.

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 and by an additional $896 for the three months ended March 31, 2017. Liggett and Vector Tobacco may be entitled to further adjustments for 2015 forward. The remaining NPM Adjustment accrual of approximately $19,000 at March 31, 2017 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 March 31, 2017, 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 - 2016 remain to be arbitrated with the 19 states that have not settled. The disputes over the NPM Adjustments for 2015 and 2016 remain to be arbitrated with all the states except Oregon, which settled the dispute for 2015.

The arbitration for the 2004 NPM Adjustment dispute has commenced. Courts in three states, Pennsylvania, Maryland, and Missouri 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. 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. Liggett may be required to make additional payments under the MSA as a result of this dispute, which could adversely affect the Company's consolidated financial position, results of operations and cash flows.

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.

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. On April 21, 2017, the court ruled that the settlement agreement should be enforced and referred the matter to a Special Master for further proceedings to determine the amount of damages, if any, to be awarded.

Liggett may be required to make additional payments to Texas and Mississippi which could adversely affect the Company’s condensed 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 7, 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 months ended March 31, 2017 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 as of January 1, 2017	$	16,192	$	3,659		$	19,851		$	22,257		$	27,513		$	49,770
Expenses	31,928		1,610			33,538			—			—			—
NPM Settlement adjustment	33		—			33			(928		)	—			(928		)
Change in MSA obligations capitalized as inventory	189		—			189			—			—			—
Payments	—		(3,891		)	(3,891		)	—			—			—
Reclassification to/(from) non-current liabilities	—		4,266			4,266			—			(4,266		)	(4,266		)
Interest on withholding	—		63			63			—			670			670
Balance as of March 31, 2017	$	48,342	$	5,707		$	54,049		$	21,329		$	23,917		$	45,246

The activity in the Company's accruals for the MSA and tobacco litigation for the three months ended March 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 as of January 1, 2016	$	29,241		$	22,904		$	52,145		$	20,094	$	24,718		$	44,812
Expenses	14,835			2,504			17,339			—		—			—
Change in MSA obligations capitalized as inventory	(406		)	—			(406		)	—		—			—
Payments	—			(21,171		)	(21,171		)	—		—			—
Reclassification from non-current liabilities	—			3,252			3,252			—		(3,252		)	(3,252		)
Interest on withholding	35			197			232			—		568			568
Balance as of March 31, 2016	$	43,705		$	7,686		$	51,391		$	20,094	$	22,034		$	42,128

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 March 31, 2017.

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.

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.

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 have a material adverse affect on the Company’s consolidated financial position, results of operations or cash flows.

Employee Benefit Plans

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

The following table summarizes key information related to the Company's pension plans and other postretirement benefits:



	Pension Benefits						Other Postretirement Benefits
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2017			2016			2017			2016
Service cost — benefits earned during the period	$	141		$	137		$	1		$	1
Interest cost on projected benefit obligation	1,266			1,355			92			97
Expected return on assets	(1,356		)	(1,519		)	—			—
Amortization of net loss (gain)	501			464			(13		)	(19		)
Net expense	$	552		$	437		$	80		$	79

Income Taxes

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company's provision for income taxes in interim periods is based on an estimated annual effective income tax rate derived, in part, from estimated annual pre-tax results from ordinary operations. The annual effective income tax rate is reviewed and, if necessary, adjusted on a quarterly basis. As a result of adopting ASU 2016-09, all excess tax benefits and deficiencies in the current and future periods will be recognized as income tax expense in the Company’s Condensed Consolidated Statement of Operations in the reporting period in which they occur. This may result in increased volatility in the Company’s effective tax rate.

The Company's income tax (benefit) expense consisted of the following:



	Three Months Ended
	March 31,
	2017			2016
(Loss) income before provision for income taxes	$	(7,007	)	$	35,756
Income tax (benefit) expense using estimated annual effective income tax rate	(2,639		)	14,314
Impact of discrete items, net	(143		)	49
Income tax (benefit) expense	$	(2,782	)	$	14,363

The discrete item for the three months ended March 31, 2017 is related to an income tax deduction as a result of adopting ASU 2016-09. The discrete item for the three months ended March 31, 2016 is primarily related to the results of a recent state income tax audit.

Investments and Fair Value Measurements

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Investments and Fair Value Measurements

INVESTMENTS AND FAIR VALUE MEASUREMENTS

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



	Fair Value Measurements as of March 31, 2017
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Assets:
Money market funds ⁽¹⁾	$	218,809	$	218,809	$	—	$	—

Commercial paper ⁽¹⁾	48,335		—		48,335		—

Certificates of deposit ⁽²⁾	2,985		—		2,985		—

Bonds ⁽²⁾	4,240		4,240		—		—

Investment securities available for sale
Equity securities	50,425		50,425		—		—
Mutual funds invested in fixed income securities	20,725		20,725		—		—
Fixed income securities
U.S. government securities	28,494		—		28,494		—
Corporate securities	38,877		—		38,877		—
U.S. government and federal agency	6,043		—		6,043		—
Commercial mortgage-backed securities	843		—		843		—
Commercial paper	1,999		—		1,999		—
Index-linked U.S. bonds	2,325		—		2,325		—
Foreign fixed-income securities	500		—		500		—
Total fixed income securities	79,081		—		79,081		—

Total investment securities available for sale	150,231		71,150		79,081		—

Total	$	424,600	$	294,199	$	130,401	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	103,761	$	—	$	—	$	103,761


(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.



	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.

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 are 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 in 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 March 31, 2017:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	March 31, 2017		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	103,761	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	20.80
				Convertible trading price (as a percentage of par value)	112.94		%
				Volatility	19.54		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	4.0% - 5.0% (4.5%)

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 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

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company's business segments for the three months ended March 31, 2017 and 2016 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 LLC, which includes Douglas Elliman, Escena, 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 three months ended March 31, 2017 and 2016 were as follows:



							Real			Corporate
	Tobacco			E-Cigarettes			Estate			and Other			Total
Three months ended March 31, 2017
Revenues	$	257,454		$	—		$	157,754		$	—		$	415,208
Operating income (loss)	59,770		(1)	(77		)	620			(7,382		)	52,931
Equity in earnings from real estate ventures	—			—			11,113			—			11,113
Depreciation and amortization	2,420			—			2,222			387			5,029
Capital expenditures	1,096			—			3,486			6			4,588

Three months ended March 31, 2016
Revenues	$	221,015		$	38		$	159,747		$	—		$	380,800
Operating income (loss)	61,483		(2)	(193		)	7,674			(6,805		)	62,159
Equity in losses from real estate ventures	—			—			(507		)	—			(507		)
Depreciation and amortization	2,440			—			2,282			442			5,164
Capital expenditures	2,618			—			1,279			18			3,915


⁽¹⁾	Operating income includes $895 of income from MSA Settlement, and $1,585 of litigation judgment expense.


⁽²⁾	Operating income includes $2,350 of litigation judgment expense and $41 of restructuring expense.

Condensed Financial Information of Parent Company Only 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
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-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
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-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
-Section 50
-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

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-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

Condensed Consolidating Financial Information

3 Months Ended

Mar. 31, 2017

Condensed Consolidating Financial Information

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The following 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 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. Any such debt securities may be issued by the Company and guaranteed by the guarantors, but any such debt securities would 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 March 31, 2017 and December 31, 2016, the related Condensed Consolidating Statements of Operations for the three months ended March 31, 2017 and 2016, and the related Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2017 and 2016 of Vector Group Ltd. (Parent/Issuer), the guarantor subsidiaries (Subsidiary Guarantors) and the subsidiaries that are not guarantors (Subsidiary Non-Guarantors).

CONDENSED CONSOLIDATING BALANCE SHEETS



				March 31, 2017
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	221,781		$	36,138	$	98,768	$	—		$	356,687
Investment securities available for sale	114,555			35,676		—		—			150,231
Accounts receivable - trade, net	—			10,673		3,817		—			14,490
Intercompany receivables	24,318			—		—		(24,318		)	—
Inventories	—			86,961		—		—			86,961
Income taxes receivable, net	38,282			—		—		(18,940		)	19,342
Restricted assets	240			5,257		914		—			6,411
Other current assets	423			3,846		22,061		—			26,330
Total current assets	399,599			178,551		125,560		(43,258		)	660,452
Property, plant and equipment, net	954			46,819		32,594		—			80,367
Investments in real estate, net	—			—		23,618		—			23,618
Long-term investments	73,419			377		—		—			73,796
Investments in real estate ventures	—			—		227,249		—			227,249
Investments in consolidated subsidiaries	497,764			—		—		(497,764		)	—
Restricted assets	1,491			2,259		—		—			3,750
Goodwill and other intangible assets, net	—			107,511		154,042		—			261,553
Prepaid pension costs	—			22,577		—		—			22,577
Other assets	7,499			12,165		14,046		—			33,710
Total assets	$	980,726		$	370,259	$	577,109	$	(541,022	)	$	1,387,072
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—		$	10,821	$	175	$	—		$	10,996
Current portion of employee benefits	—			937		—		—			937
Intercompany payables	—			845		23,473		(24,318		)	—
Income taxes payable, net	—			13,625		5,315		(18,940		)	—
Litigation accruals and current payments due under the Master Settlement Agreement	—			54,049		—		—			54,049
Other current liabilities	30,665			59,092		35,349		—			125,106
Total current liabilities	30,665			139,369		64,312		(43,258		)	191,088
Notes payable, long-term debt and other obligations, less current portion	1,138,541			4,882		348		—			1,143,771
Fair value of derivatives embedded within convertible debt	103,761			—		—		—			103,761
Non-current employee benefits	43,255			15,913		—		—			59,168
Deferred income taxes, net	6,405			40,438		46,016		—			92,859
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	1,131			45,316		14,248		—			60,695
Total liabilities	1,323,758			245,918		124,924		(43,258		)	1,651,342
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(343,032		)	124,341		373,423		(497,764		)	(343,032		)
Non-controlling interest	—			—		78,762		—			78,762
Total stockholders' (deficiency) equity	(343,032		)	124,341		452,185		(497,764		)	(264,270		)
Total liabilities and stockholders' deficiency	$	980,726		$	370,259	$	577,109	$	(541,022	)	$	1,387,072

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 STATEMENTS OF OPERATIONS



				Three Months Ended March 31, 2017
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	257,573		$	157,754		$	(119	)	$	415,208
Expenses:
Cost of sales	—			175,754			100,169			—			275,923
Operating, selling, administrative and general expenses	9,851			18,026			57,011			(119		)	84,769
Litigation settlement and judgment expense	—			1,585			—			—			1,585
Management fee expense	—			2,767			—			(2,767		)	—
Operating (loss) income	(9,851		)	59,441			574			2,767			52,931
Other income (expenses):
Interest expense	(45,347		)	(868		)	(6		)	—			(46,221		)
Change in fair value of derivatives embedded within convertible debt	8,571			—			—			—			8,571
Loss on extinguishment of debt	(34,110		)	—			—			—			(34,110		)
Equity in earnings from real estate ventures	—			—			11,113			—			11,113
Equity in losses from investments	(1,049		)	(12		)	—			—			(1,061		)
Gain on sale of investment securities available for sale	150			—			—			—			150
Impairment of investment securities available for sale	(39		)	—			—			—			(39		)
Equity in earnings in consolidated subsidiaries	43,451			—			—			(43,451		)	—
Management fee income	2,767			—			—			(2,767		)	—
Other, net	944			336			379			—			1,659
(Loss) income before provision for income taxes	(34,513		)	58,897			12,060			(43,451		)	(7,007		)
Income tax benefit (expense)	30,286			(22,551		)	(4,953		)	—			2,782
Net (loss) income	(4,227		)	36,346			7,107			(43,451		)	(4,225		)
Net income attributed to non-controlling interest	—			—			(2		)	—			(2		)
Net (loss) income attributed to Vector Group Ltd.	$	(4,227	)	$	36,346		$	7,105		$	(43,451	)	$	(4,227	)
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(2	)	$	—		$	(2	)
Comprehensive (loss) income attributed to Vector Group Ltd.	$	(4,103	)	$	36,381		$	7,105		$	(43,486	)	$	(4,103	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Three Months Ended March 31, 2016
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	221,142		$	159,747		$	(89	)	$	380,800
Expenses:
Cost of sales	—			136,744			99,678			—			236,422
Operating, selling, administrative and general expenses	9,196			18,273			52,448			(89		)	79,828
Litigation settlement and judgment expense	—			2,350			—			—			2,350
Management fee expense	—			2,662			—			(2,662		)	—
Restructuring charges	—			41			—			—			41
Operating (loss) income	(9,196		)	61,072			7,621			2,662			62,159
Other income (expenses):
Interest expense	(29,758		)	(959		)	(3		)	—			(30,720		)
Change in fair value of derivatives embedded within convertible debt	9,694			—			—			—			9,694
Equity in losses from real estate ventures	—			—			(507		)	—			(507		)
Gain on sale of investment securities available for sale	176			391			—			—			567
Impairment of investment securities available for sale	(41		)	(4,772		)	—			—			(4,813		)
Equity in losses from investments	(1,655		)	(16		)	—			—			(1,671		)
Equity in earnings in consolidated subsidiaries	35,610			—			—			(35,610		)	—
Management fee income	2,662			—			—			(2,662		)	—
Other, net	400			237			410			—			1,047
Income before provision for income taxes	7,892			55,953			7,521			(35,610		)	35,756
Income tax benefit (expense)	11,446			(23,386		)	(2,423		)	—			(14,363		)
Net income	19,338			32,567			5,098			(35,610		)	21,393
Net income attributed to non-controlling interest	—			—			(2,055		)	—			(2,055		)
Net income attributed to Vector Group Ltd.	$	19,338		$	32,567		$	3,043		$	(35,610	)	$	19,338
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(2,055	)	$	—		$	(2,055	)
Comprehensive income attributed to Vector Group Ltd.	$	19,381		$	32,710		$	3,043		$	(35,753	)	$	19,381

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Three Months Ended March 31, 2017
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash (used in) provided by operating activities	$	(28,282	)	$	95,873		$	7,962		$	(47,657	)	$	27,896
Cash flows from investing activities:
Sale of investment securities	13,456			—			—			—			13,456
Maturities of investment securities	7,174			—			—			—			7,174
Purchase of investment securities	(14,974		)	—			—			—			(14,974		)
Purchase of long-term investments	(22,400		)	—			—			—			(22,400		)
Investments in real estate ventures	—			—			(1,436		)	—			(1,436		)
Increase in cash surrender value of life insurance policies	—			(49		)	—			—			(49		)
(Increase) decrease in restricted assets	(3		)	1,159			—			—			1,156
Issuance of notes receivable	—			—			(1,500		)	—			(1,500		)
Investments in subsidiaries	(535		)	—			—			535			—
Proceeds from sale of fixed assets	—			2			—			—			2
Capital expenditures	(6		)	(1,096		)	(3,486		)	—			(4,588		)
Pay downs of investment securities	864			—			—			—			864
Investments in real estate, net	—			—			(70		)	—			(70		)
Net cash (used in) provided by investing activities	(16,424		)	16			(6,492		)	535			(22,365		)
Cash flows from financing activities:
Proceeds from issuance of debt	850,000			—			—			—			850,000
Deferred financing costs	(19,200		)	—			—			—			(19,200		)
Repayments of debt	(835,000		)	(654		)	(43		)	—			(835,697		)
Borrowings under revolver	—			39,956			—			—			39,956
Repayments on revolver	—			(68,305		)	—			—			(68,305		)
Capital contributions received	—			100			435			(535		)	—
Intercompany dividends paid	—			(45,646		)	(2,011		)	47,657			—
Dividends and distributions on common stock	(52,358		)	—			—			—			(52,358		)
Proceeds from issuance of Vector stock	43,230			—			—			—			43,230
Net cash used in financing activities	(13,328		)	(74,549		)	(1,619		)	47,122			(42,374		)
Net (decrease) increase in cash and cash equivalents	(58,034		)	21,340			(149		)	—			(36,843		)
Cash and cash equivalents, beginning of period	279,815			14,798			98,917			—			393,530
Cash and cash equivalents, end of period	$	221,781		$	36,138		$	98,768		$	—		$	356,687

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Three Months Ended March 31, 2016
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by (used in) operating activities	$	12,633		$	30,671		$	1,917		$	(50,157	)	$	(4,936	)
Cash flows from investing activities:
Sale of investment securities	46,497			4,721			—			—			51,218
Maturities of investment securities	343			—			—			—			343
Purchase of investment securities	(29,112		)	—			—			—			(29,112		)
Investments in real estate ventures	—			—			(5,795		)	—			(5,795		)
Investments in real estate, net	—			—			(49		)	—			(49		)
Distributions from investments in real estate ventures	—			—			12			—			12
Increase in cash surrender value of life insurance policies	—			(62		)	—			—			(62		)
Increase in restricted assets	(3		)	(3,014		)	—			—			(3,017		)
Pay downs of investment securities	2,174			—			—			—			2,174
Investments in subsidiaries	(471		)	—			—			471			—
Capital expenditures	(18		)	(2,618		)	(1,279		)	—			(3,915		)
Net cash provided by (used in) investing activities	19,410			(973		)	(7,111		)	471			11,797
Cash flows from financing activities:
Proceeds from issuance of debt	—			—			57			—			57
Repayments of debt	—			(1,545		)	(31		)	—			(1,576		)
Borrowings under revolver	—			59,426			—			—			59,426
Repayments on revolver	—			(41,482		)	—			—			(41,482		)
Capital contributions received	—			100			371			(471		)	—
Intercompany dividends paid	—			(34,908		)	(15,249		)	50,157			—
Dividends and distributions on common stock	(48,876		)	—			—			—			(48,876		)
Contributions from non-controlling interest	—			—			248			—			248
Distributions to non-controlling interest	—			—			(5,978		)	—			(5,978		)
Net cash used in financing activities	(48,876		)	(18,409		)	(20,582		)	49,686			(38,181		)
Net (decrease) increase in cash and cash equivalents	(16,833		)	11,289			(25,776		)	—			(31,320		)
Cash and cash equivalents, beginning of period	111,470			12,375			116,523			—			240,368
Cash and cash equivalents, end of period	$	94,637		$	23,664		$	90,747		$	—		$	209,048

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation: The condensed 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.
Basis of Accounting	The unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and, in management's opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair statement of the results for the periods presented. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission. The consolidated results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the entire year.
Distributions and Dividends on Common Stock	Distributions and Dividends on Common Stock: The Company records distributions on its common stock as dividends in its condensed 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 periods 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. 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.
Revenue Recognition, 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.
Revenue Recognition, 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.
Earnings Per Share (“EPS”)	Earnings Per Share (“EPS”): Information concerning the Company's common stock has been adjusted to give retroactive effect to the 5% stock dividend paid to Company stockholders on September 29, 2016. All per share amounts and references to share amounts have been updated to reflect the retrospective effect of the stock dividends.
Fair Value of Derivatives Embedded within Convertible Debt	Fair Value of Derivatives Embedded within Convertible Debt: The Company has estimated the fair 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.
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.
New Accounting Pronouncements	New Accounting Pronouncements: In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). ASU 2017-07 provides guidance that require an employer to report the service cost component separate from the other components of net benefit pension costs. The employer is required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement must be disclosed. The amendments of this ASU are effective for annual reporting periods beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. Other than the revised statement of operations presentation, the adoption of ASU 2017-07 is not expected to have a material impact on the Company's condensed consolidated financial statements. In November 2016, the FASB issued 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 condensed 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 adoption of ASU 2016-17 had no impact on the Company’s condensed 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 condensed 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. The Company adopted ASU 2016-09 in the first quarter of 2017 and elected to apply this adoption prospectively. Prior periods have not been adjusted. See Note 9 for information regarding the impact on the Company's condensed 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, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-9”), 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. In May 2014, FASB issued ASU 2014-9 that 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. As amended by ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date the new standard is effective for annual reporting periods beginning after December 15, 2017, 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 has not yet selected a transition method. The Company is currently evaluating the method and impact the adoption of ASU 2016-08 and ASU 2014-09 will have on the Company's condensed 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 is effective for the Company’s fiscal year beginning January 1, 2017 and subsequent interim periods. The adoption of ASU 2016-07 did not have a material effect on the Company’s condensed consolidated financial statements. 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 adoption of ASU 2016-06 had no impact on the Company's condensed 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 condensed consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such these investments may be measured at cost. ASU 2016-01 will be effective for the Company’s fiscal year beginning January 1, 2018 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-01 will have on the Company’s condensed consolidated financial statements. 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 were effective for annual periods beginning after December 15, 2016 and interim periods within those reporting periods. The adoption of ASU 2014-15 did not have a material effect on the Company’s condensed consolidated financial statements.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Net income for purposes of determining basic and diluted EPS

Net (loss) income for purposes of determining basic and diluted EPS was as follows:



	Three Months Ended
	March 31,
	2017			2016
Net (loss) income attributed to Vector Group Ltd.	$	(4,227	)	$	19,338
Income attributed to participating securities	—			(633		)
Net (loss) income available to common shares attributed to Vector Group Ltd.	$	(4,227	)	$	18,705

Basic and diluted EPS calculation shares

Basic and diluted EPS were calculated using the following common shares:



	Three Months Ended
	March 31,
	2017	2016
Weighted-average shares for basic EPS	125,568,396	123,961,803
Plus incremental shares related to stock options and non-vested restricted stock	—	204,145
Weighted-average shares for diluted EPS	125,568,396	124,165,948

Outstanding shares not included in the computation of diluted EPS

The following were outstanding during the three months ended March 31, 2017 and 2016, but were not included in the computation of diluted EPS because the effect was anti-dilutive.



	Three Months Ended
	March 31,
	2017		2016
Weighted-average shares of non-vested restricted stock	1,959,376		1,260,000
Weighted-average expense per share	$	19.14	$	21.67
Weighted-average number of shares issuable upon conversion of debt	26,140,250		26,140,251
Weighted-average conversion price	$	18.70	$	18.70

Schedule of other income (loss), net

Other, net consisted of:



	Three Months Ended
	March 31,
	2017			2016
Interest and dividend income	$	1,745		$	1,324
Loss on long-term investment	(35		)	—
Impairment of long-term investments	—			(282		)
Other (expense) income	(51		)	5
Other, net	$	1,659		$	1,047

Schedule of other current liabilities

Other current liabilities consisted of:



	March 31, 2017		December 31, 2016
Accounts payable	$	11,170	$	10,573
Accrued promotional expenses	24,188		23,763
Accrued excise and payroll taxes payable, net	20,802		10,044
Accrued interest	20,114		35,449
Commissions payable	16,732		6,164
Accrued salary and benefits	13,232		26,958
Other current liabilities	18,868		22,901
Total other current liabilities	$	125,106	$	135,852

Schedule of goodwill and other intangible assets, net

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



	March 31, 2017		December 31, 2016
Goodwill	$	70,815	$	70,815

Indefinite life intangibles:
Intangible asset associated with benefit under the MSA	107,511		107,511
Trademark - Douglas Elliman	80,000		80,000

Intangibles with a finite life, net	3,227		3,592

Total goodwill and other intangible assets, net	$	261,553	$	261,918

Inventories (Tables)

3 Months Ended

Mar. 31, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories consist of:



	March 31, 2017			December 31, 2016
Leaf tobacco	$	43,111		$	46,253
Other raw materials	3,245			3,733
Work-in-process	430			633
Finished goods	65,862			65,052
Inventories at current cost	112,648			115,671
LIFO adjustments	(25,687		)	(25,837		)
	$	86,961		$	89,834

Investment Securities Available for Sale (Tables)

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities

The components of investment securities available for sale at March 31, 2017 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable equity securities	$	34,944	$	15,481	$	—		$	50,425
Mutual funds invested in fixed income securities	20,620		106		(1		)	20,725
Marketable debt securities	78,811		270		—			79,081
Total investment securities available for sale	$	134,375	$	15,857	$	(1	)	$	150,231

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

Schedule of Maturity Dates of Fixed Income Securities

The table below summarizes the maturity dates of marketable debt securities at March 31, 2017.



Investment Type:	Market Value		Under 1 Year		1 Year up to 5 Years		More than 5 Years
U.S. Government securities	$	28,494	$	—	$	28,494	$	—
Corporate securities	38,877		7,035		31,842		—
U.S. mortgage-backed securities	6,043		—		31		6,012
Commercial mortgage-backed securities	843		—		—		843
Commercial paper	1,999		1,999		—		—
Index-linked U.S. bonds	2,325		—		2,325		—
Foreign fixed-income securities	500		—		500		—
Total marketable debt securities by maturity dates	$	79,081	$	9,034	$	63,192	$	6,855

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
March 31, 2017
Mutual funds invested in fixed income securities	$	5,167	$	(1	)	$	—	$	—	$	5,167	$	(1	)
	$	5,167	$	(1	)	$	—	$	—	$	5,167	$	(1	)

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	)

Schedule of Realized Gains (Losses)

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



	Three Months Ended
	March 31,
	2017			2016
Gross realized gains on sales	$	215		$	759
Gross realized losses on sales	(65		)	(192		)
Gains on sale of investment securities available for sale	$	150		$	567

Gross realized losses on other-than-temporary impairments	$	(39	)	$	(4,813	)

Long-Term Investments (Tables)

3 Months Ended

Mar. 31, 2017

Long-term Investments [Abstract]

Cost method investments

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



	March 31, 2017				December 31, 2016
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Investment partnerships	$	57,376	$	64,053	$	34,975	$	40,569
Real estate partnership	—		—		501		494
	$	57,376	$	64,053	$	35,476	$	41,063

Long-term investments consisted of the following:



	March 31, 2017		December 31, 2016
Investments accounted at cost	$	57,376	$	35,476
Investments accounted for under the equity method	16,420		17,721
	$	73,796	$	53,197

Equity method investments

Long-term investments consisted of the following:



	March 31, 2017		December 31, 2016
Investments accounted at cost	$	57,376	$	35,476
Investments accounted for under the equity method	16,420		17,721
	$	73,796	$	53,197

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



	March 31, 2017		December 31, 2016
Indian Creek Investors LP ("Indian Creek")	$	4,212	$	5,248
Boyar Value Fund ("Boyar")	8,138		7,816
Ladenburg Thalmann Financial Services Inc. ("LTS")	4,070		4,657
Castle Brands, Inc. ("Castle")	—		—
	$	16,420	$	17,721

Condominium and Mixed Use Development:



	Three Months Ended March 31,
	2017		2016
Income Statement
Revenue	$	128,278	$	61,926
Cost of Goods Sold	102,195		32,803
Other Expenses	2,526		389
Income from continuing operations	$	23,557	$	28,734

New Valley LLC (Tables)

3 Months Ended

Mar. 31, 2017

Real Estate [Abstract]

Investments in real estate ventures

Equity in Earnings (Losses) from Real Estate Ventures:

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



	March 31, 2017			March 31, 2016
Condominium and Mixed Use Development:
New York City SMSA	$	12,180		$	(669	)
All other U.S. areas	(292		)	(514		)
	11,888			(1,183		)
Apartment Buildings:
All other U.S. areas	77			516
	77			516
Hotels:
New York City SMSA	(687		)	(580		)
International	(550		)	(75		)
	(1,237		)	(655		)
Commercial:
New York City SMSA	(245		)	212
	(245		)	212

Other	630			603
Total equity in earnings (losses) from real estate ventures	$	11,113		$	(507	)

Maximum Exposure to Loss:

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



	March 31, 2017
Condominium and Mixed Use Development:
New York City SMSA	$	139,093
All other U.S. areas	48,523
	187,616
Apartment Buildings:
All other U.S. areas	8,212
	8,212
Hotels:
New York City SMSA	21,208
International	2,486
	23,694
Commercial:
New York City SMSA	2,944
All other U.S. areas	10,000
	12,944
Other	2,109
Total maximum exposure to loss	$	234,575

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



	Range of Ownership	March 31, 2017		December 31, 2016
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	137,529	$	131,770
All other U.S. areas	15.0% - 48.5%	42,761		40,950
		180,290		172,720
Apartment Buildings:
All other U.S. areas	7.6% - 16.3%	8,212		8,287
		8,212		8,287
Hotels:
New York City SMSA	5.2%	21,208		21,895
International	49.0%	2,486		3,037
		23,694		24,932
Commercial:
New York City SMSA	49.0%	2,944		3,290
All other U.S. areas	2.1%	10,000		10,000
		12,944		13,290

Other	50.0%	2,109		2,029
Investments in real estate ventures		$	227,249	$	221,258

Contributions:

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



	March 31, 2017		March 31, 2016
Condominium and Mixed Use Development:
New York City SMSA	$	91	$	1,102
All other U.S. areas	1,345		3,975
	1,436		5,077
Hotels:
New York City SMSA	—		718
	—		718

Total contributions	$	1,436	$	5,795

Distributions:

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



	March 31, 2017		March 31, 2016
Condominium and Mixed Use Development:
New York City SMSA	$	6,200	$	258
	6,200		258
Apartment Buildings:
All other U.S. areas	152		—
	152		—
Commercial:
New York City SMSA	101		135
	101		135

Other	550		550
Total distributions	$	7,003	$	943

Combined Financial Statements for Unconsolidated Subsidiaries

Long-term investments consisted of the following:



	March 31, 2017		December 31, 2016
Investments accounted at cost	$	57,376	$	35,476
Investments accounted for under the equity method	16,420		17,721
	$	73,796	$	53,197

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



	March 31, 2017		December 31, 2016
Indian Creek Investors LP ("Indian Creek")	$	4,212	$	5,248
Boyar Value Fund ("Boyar")	8,138		7,816
Ladenburg Thalmann Financial Services Inc. ("LTS")	4,070		4,657
Castle Brands, Inc. ("Castle")	—		—
	$	16,420	$	17,721

Condominium and Mixed Use Development:



	Three Months Ended March 31,
	2017		2016
Income Statement
Revenue	$	128,278	$	61,926
Cost of Goods Sold	102,195		32,803
Other Expenses	2,526		389
Income from continuing operations	$	23,557	$	28,734

Investments in Real Estate, net

Investments in Real Estate, net:

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



	March 31, 2017		December 31, 2016
Escena, net	$	10,700	$	10,792
Sagaponack	12,918		12,848
Investments in real estate, net	$	23,618	$	23,640

Escena. The assets of “Escena, net” were as follows:



	March 31, 2017			December 31, 2016
Land and land improvements	$	8,907		$	8,907
Building and building improvements	1,878			1,878
Other	2,038			2,028
	12,823			12,813
Less accumulated depreciation	(2,123		)	(2,021		)
	$	10,700		$	10,792

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

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Notes payable, long-term debt and other obligations

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



	March 31, 2017			December 31, 2016
Vector:
7.75% Senior Secured Notes due 2021, including premium of $0 and $13,954	$	—		$	848,954
6.125% Senior Secured Notes due 2025	850,000			—
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $100,513 and $108,480*	129,487			121,520
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $67,162 and $71,247*	191,588			187,503
Liggett:
Revolving credit facility	8,887			37,163
Term loan under credit facility	2,925			2,999
Equipment loans	3,874			4,519
Other	541			591
Notes payable, long-term debt and other obligations	1,187,302			1,203,249
Less:
Debt issuance costs	(32,535		)	(30,798		)
Total notes payable, long-term debt and other obligations	1,154,767			1,172,451
Less:
Current maturities	(10,996		)	(39,508		)
Amount due after one year	$	1,143,771		$	1,132,943

______________________

Schedule of conversion rates for all convertible debt outstanding

The conversion rates for all convertible debt outstanding as of March 31, 2017 and December 31, 2016, are summarized below:



	March 31, 2017			December 31, 2016
	Conversion Price		Shares per $1,000	Conversion Price		Shares per $1,000

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

Schedule of non-cash interest expense - Vector

Non-Cash Interest Expense - Vector:



	Three Months Ended
	March 31,
	2017		2016
Amortization of debt discount, net	$	11,836	$	7,956
Amortization of debt issuance costs	1,970		1,168
Loss on extinguishment of 7.75% Senior Secured Notes	1,754		—
	$	15,560	$	9,124

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

Fair Value of Notes Payable and Long-Term Debt:



	March 31, 2017					December 31, 2016
	Carrying			Fair		Carrying			Fair
	Value			Value		Value			Value
Notes payable and long-term debt	$	1,187,302	(1)	$	1,509,359	$	1,203,249	(1)	$	1,570,732

______________________

⁽¹⁾The carrying value does not include the carrying value of the embedded derivative. See Note 10.

Contingencies (Tables)

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of contingencies

The activity in the Company’s accruals for the MSA and tobacco litigation for the three months ended March 31, 2017 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 as of January 1, 2017	$	16,192	$	3,659		$	19,851		$	22,257		$	27,513		$	49,770
Expenses	31,928		1,610			33,538			—			—			—
NPM Settlement adjustment	33		—			33			(928		)	—			(928		)
Change in MSA obligations capitalized as inventory	189		—			189			—			—			—
Payments	—		(3,891		)	(3,891		)	—			—			—
Reclassification to/(from) non-current liabilities	—		4,266			4,266			—			(4,266		)	(4,266		)
Interest on withholding	—		63			63			—			670			670
Balance as of March 31, 2017	$	48,342	$	5,707		$	54,049		$	21,329		$	23,917		$	45,246

The activity in the Company's accruals for the MSA and tobacco litigation for the three months ended March 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 as of January 1, 2016	$	29,241		$	22,904		$	52,145		$	20,094	$	24,718		$	44,812
Expenses	14,835			2,504			17,339			—		—			—
Change in MSA obligations capitalized as inventory	(406		)	—			(406		)	—		—			—
Payments	—			(21,171		)	(21,171		)	—		—			—
Reclassification from non-current liabilities	—			3,252			3,252			—		(3,252		)	(3,252		)
Interest on withholding	35			197			232			—		568			568
Balance as of March 31, 2016	$	43,705		$	7,686		$	51,391		$	20,094	$	22,034		$	42,128

As of March 31, 2017, 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 occurred on March 14, 2017. A decision is pending.
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 Fourth District Court of Appeal reversed the judgment in its entirety and remanded the case for a new trial. As a result, the $1,530 compensatory award against Liggett was also reversed. The plaintiff filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. The court declined to accept jurisdiction. This case was settled in December 2016 as part of Engle Progeny Settlement II.
December 2012	Buchanan v. R.J. Reynolds	Leon	2,750	—	Liggett satisfied the judgment and the case is concluded.
May 2013	D. Cohen v. R.J. Reynolds	Palm Beach	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
August 2013	Rizzuto v. R.J. Reynolds	Hernando	3,479	—	Liggett settled its portion of the judgment for $1,500 and the case is concluded as to Liggett.
August 2014	Irimi v. R.J. Reynolds	Broward	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
October 2014	Lambert v. R.J. Reynolds	Pinellas	3,600	9,500	Liggett satisfied the judgment and the case is concluded.
November 2014	Boatright v. R.J. Reynolds	Polk	—	300	In November 2014, the jury awarded compensatory damages in the amount of $15,000 with 15% fault apportioned to plaintiff and 85% to Philip Morris. A joint and several judgment was entered in the amount of $12,750 on the compensatory damages. Judgment was also entered against Liggett for $300 in punitive damages. Defendants appealed and plaintiff cross-appealed. The Second District Court of Appeal reversed the trial court's decision to reduce the judgment by plaintiff's assessed fault and affirmed as to all other issues on that appeal. In a separate appeal, the Second District Court of Appeal also reversed the trial court's ruling that plaintiff's proposals for settlement were invalid and remanded for determination of attorney's fees.
					Any potential liability as a result of the pending appeals is included in the amount Liggett will pay under Engle Progeny Settlement II.
June 2015	Caprio v. R.J. Reynolds	Broward	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II.
March 2017	Santoro v. R.J. Reynolds	Broward	160	15	In April 2017, a joint and several judgment was entered against R.J. Reynolds, Philip Morris and Liggett for $1,027, for compensatory damages. Judgment was also entered against Liggett for $15 in punitive damages. Post trial motions are pending but have not been set for hearing.
Total Damages Awarded:			24,505	10,815
Amounts accrued, paid or compromised:			(24,328)	(10,800)
Damages remaining on Appeal:			$177	$15
(1) Compensatory damages are adjusted to reflect the jury's allocation of comparative fault and only include Liggett's jury allocated share, regardless of whether a judgment was joint and several. The amounts listed above do not include attorneys' fees or statutory interest.
(2) See Exhibit 99.1 for a more complete description of the cases currently on appeal.

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



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

Compensation and Retirement Disclosure [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

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2017

Schedule of Net Benefit Costs

The following table summarizes key information related to the Company's pension plans and other postretirement benefits:



	Pension Benefits						Other Postretirement Benefits
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2017			2016			2017			2016
Service cost — benefits earned during the period	$	141		$	137		$	1		$	1
Interest cost on projected benefit obligation	1,266			1,355			92			97
Expected return on assets	(1,356		)	(1,519		)	—			—
Amortization of net loss (gain)	501			464			(13		)	(19		)
Net expense	$	552		$	437		$	80		$	79

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income tax expense (benefit)

The Company's income tax (benefit) expense consisted of the following:



	Three Months Ended
	March 31,
	2017			2016
(Loss) income before provision for income taxes	$	(7,007	)	$	35,756
Income tax (benefit) expense using estimated annual effective income tax rate	(2,639		)	14,314
Impact of discrete items, net	(143		)	49
Income tax (benefit) expense	$	(2,782	)	$	14,363

Investments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

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

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



	Fair Value Measurements as of March 31, 2017
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Assets:
Money market funds ⁽¹⁾	$	218,809	$	218,809	$	—	$	—

Commercial paper ⁽¹⁾	48,335		—		48,335		—

Certificates of deposit ⁽²⁾	2,985		—		2,985		—

Bonds ⁽²⁾	4,240		4,240		—		—

Investment securities available for sale
Equity securities	50,425		50,425		—		—
Mutual funds invested in fixed income securities	20,725		20,725		—		—
Fixed income securities
U.S. government securities	28,494		—		28,494		—
Corporate securities	38,877		—		38,877		—
U.S. government and federal agency	6,043		—		6,043		—
Commercial mortgage-backed securities	843		—		843		—
Commercial paper	1,999		—		1,999		—
Index-linked U.S. bonds	2,325		—		2,325		—
Foreign fixed-income securities	500		—		500		—
Total fixed income securities	79,081		—		79,081		—

Total investment securities available for sale	150,231		71,150		79,081		—

Total	$	424,600	$	294,199	$	130,401	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	103,761	$	—	$	—	$	103,761


(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.



	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.

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 March 31, 2017:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	March 31, 2017		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	103,761	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	20.80
				Convertible trading price (as a percentage of par value)	112.94		%
				Volatility	19.54		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	4.0% - 5.0% (4.5%)

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%)

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 March 31, 2017:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	March 31, 2017		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	103,761	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	20.80
				Convertible trading price (as a percentage of par value)	112.94		%
				Volatility	19.54		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	4.0% - 5.0% (4.5%)

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%)

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

Segment Information (Tables)

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Financial information for the Company’s operations before taxes and non-controlling interests for the three months ended March 31, 2017 and 2016 were as follows:



							Real			Corporate
	Tobacco			E-Cigarettes			Estate			and Other			Total
Three months ended March 31, 2017
Revenues	$	257,454		$	—		$	157,754		$	—		$	415,208
Operating income (loss)	59,770		(1)	(77		)	620			(7,382		)	52,931
Equity in earnings from real estate ventures	—			—			11,113			—			11,113
Depreciation and amortization	2,420			—			2,222			387			5,029
Capital expenditures	1,096			—			3,486			6			4,588

Three months ended March 31, 2016
Revenues	$	221,015		$	38		$	159,747		$	—		$	380,800
Operating income (loss)	61,483		(2)	(193		)	7,674			(6,805		)	62,159
Equity in losses from real estate ventures	—			—			(507		)	—			(507		)
Depreciation and amortization	2,440			—			2,282			442			5,164
Capital expenditures	2,618			—			1,279			18			3,915


⁽¹⁾	Operating income includes $895 of income from MSA Settlement, and $1,585 of litigation judgment expense.


⁽²⁾	Operating income includes $2,350 of litigation judgment expense and $41 of restructuring expense.

Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS



				March 31, 2017
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	221,781		$	36,138	$	98,768	$	—		$	356,687
Investment securities available for sale	114,555			35,676		—		—			150,231
Accounts receivable - trade, net	—			10,673		3,817		—			14,490
Intercompany receivables	24,318			—		—		(24,318		)	—
Inventories	—			86,961		—		—			86,961
Income taxes receivable, net	38,282			—		—		(18,940		)	19,342
Restricted assets	240			5,257		914		—			6,411
Other current assets	423			3,846		22,061		—			26,330
Total current assets	399,599			178,551		125,560		(43,258		)	660,452
Property, plant and equipment, net	954			46,819		32,594		—			80,367
Investments in real estate, net	—			—		23,618		—			23,618
Long-term investments	73,419			377		—		—			73,796
Investments in real estate ventures	—			—		227,249		—			227,249
Investments in consolidated subsidiaries	497,764			—		—		(497,764		)	—
Restricted assets	1,491			2,259		—		—			3,750
Goodwill and other intangible assets, net	—			107,511		154,042		—			261,553
Prepaid pension costs	—			22,577		—		—			22,577
Other assets	7,499			12,165		14,046		—			33,710
Total assets	$	980,726		$	370,259	$	577,109	$	(541,022	)	$	1,387,072
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—		$	10,821	$	175	$	—		$	10,996
Current portion of employee benefits	—			937		—		—			937
Intercompany payables	—			845		23,473		(24,318		)	—
Income taxes payable, net	—			13,625		5,315		(18,940		)	—
Litigation accruals and current payments due under the Master Settlement Agreement	—			54,049		—		—			54,049
Other current liabilities	30,665			59,092		35,349		—			125,106
Total current liabilities	30,665			139,369		64,312		(43,258		)	191,088
Notes payable, long-term debt and other obligations, less current portion	1,138,541			4,882		348		—			1,143,771
Fair value of derivatives embedded within convertible debt	103,761			—		—		—			103,761
Non-current employee benefits	43,255			15,913		—		—			59,168
Deferred income taxes, net	6,405			40,438		46,016		—			92,859
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement	1,131			45,316		14,248		—			60,695
Total liabilities	1,323,758			245,918		124,924		(43,258		)	1,651,342
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(343,032		)	124,341		373,423		(497,764		)	(343,032		)
Non-controlling interest	—			—		78,762		—			78,762
Total stockholders' (deficiency) equity	(343,032		)	124,341		452,185		(497,764		)	(264,270		)
Total liabilities and stockholders' deficiency	$	980,726		$	370,259	$	577,109	$	(541,022	)	$	1,387,072

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 Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Three Months Ended March 31, 2017
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	257,573		$	157,754		$	(119	)	$	415,208
Expenses:
Cost of sales	—			175,754			100,169			—			275,923
Operating, selling, administrative and general expenses	9,851			18,026			57,011			(119		)	84,769
Litigation settlement and judgment expense	—			1,585			—			—			1,585
Management fee expense	—			2,767			—			(2,767		)	—
Operating (loss) income	(9,851		)	59,441			574			2,767			52,931
Other income (expenses):
Interest expense	(45,347		)	(868		)	(6		)	—			(46,221		)
Change in fair value of derivatives embedded within convertible debt	8,571			—			—			—			8,571
Loss on extinguishment of debt	(34,110		)	—			—			—			(34,110		)
Equity in earnings from real estate ventures	—			—			11,113			—			11,113
Equity in losses from investments	(1,049		)	(12		)	—			—			(1,061		)
Gain on sale of investment securities available for sale	150			—			—			—			150
Impairment of investment securities available for sale	(39		)	—			—			—			(39		)
Equity in earnings in consolidated subsidiaries	43,451			—			—			(43,451		)	—
Management fee income	2,767			—			—			(2,767		)	—
Other, net	944			336			379			—			1,659
(Loss) income before provision for income taxes	(34,513		)	58,897			12,060			(43,451		)	(7,007		)
Income tax benefit (expense)	30,286			(22,551		)	(4,953		)	—			2,782
Net (loss) income	(4,227		)	36,346			7,107			(43,451		)	(4,225		)
Net income attributed to non-controlling interest	—			—			(2		)	—			(2		)
Net (loss) income attributed to Vector Group Ltd.	$	(4,227	)	$	36,346		$	7,105		$	(43,451	)	$	(4,227	)
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(2	)	$	—		$	(2	)
Comprehensive (loss) income attributed to Vector Group Ltd.	$	(4,103	)	$	36,381		$	7,105		$	(43,486	)	$	(4,103	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Three Months Ended March 31, 2016
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	221,142		$	159,747		$	(89	)	$	380,800
Expenses:
Cost of sales	—			136,744			99,678			—			236,422
Operating, selling, administrative and general expenses	9,196			18,273			52,448			(89		)	79,828
Litigation settlement and judgment expense	—			2,350			—			—			2,350
Management fee expense	—			2,662			—			(2,662		)	—
Restructuring charges	—			41			—			—			41
Operating (loss) income	(9,196		)	61,072			7,621			2,662			62,159
Other income (expenses):
Interest expense	(29,758		)	(959		)	(3		)	—			(30,720		)
Change in fair value of derivatives embedded within convertible debt	9,694			—			—			—			9,694
Equity in losses from real estate ventures	—			—			(507		)	—			(507		)
Gain on sale of investment securities available for sale	176			391			—			—			567
Impairment of investment securities available for sale	(41		)	(4,772		)	—			—			(4,813		)
Equity in losses from investments	(1,655		)	(16		)	—			—			(1,671		)
Equity in earnings in consolidated subsidiaries	35,610			—			—			(35,610		)	—
Management fee income	2,662			—			—			(2,662		)	—
Other, net	400			237			410			—			1,047
Income before provision for income taxes	7,892			55,953			7,521			(35,610		)	35,756
Income tax benefit (expense)	11,446			(23,386		)	(2,423		)	—			(14,363		)
Net income	19,338			32,567			5,098			(35,610		)	21,393
Net income attributed to non-controlling interest	—			—			(2,055		)	—			(2,055		)
Net income attributed to Vector Group Ltd.	$	19,338		$	32,567		$	3,043		$	(35,610	)	$	19,338
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(2,055	)	$	—		$	(2,055	)
Comprehensive income attributed to Vector Group Ltd.	$	19,381		$	32,710		$	3,043		$	(35,753	)	$	19,381

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Three Months Ended March 31, 2017
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash (used in) provided by operating activities	$	(28,282	)	$	95,873		$	7,962		$	(47,657	)	$	27,896
Cash flows from investing activities:
Sale of investment securities	13,456			—			—			—			13,456
Maturities of investment securities	7,174			—			—			—			7,174
Purchase of investment securities	(14,974		)	—			—			—			(14,974		)
Purchase of long-term investments	(22,400		)	—			—			—			(22,400		)
Investments in real estate ventures	—			—			(1,436		)	—			(1,436		)
Increase in cash surrender value of life insurance policies	—			(49		)	—			—			(49		)
(Increase) decrease in restricted assets	(3		)	1,159			—			—			1,156
Issuance of notes receivable	—			—			(1,500		)	—			(1,500		)
Investments in subsidiaries	(535		)	—			—			535			—
Proceeds from sale of fixed assets	—			2			—			—			2
Capital expenditures	(6		)	(1,096		)	(3,486		)	—			(4,588		)
Pay downs of investment securities	864			—			—			—			864
Investments in real estate, net	—			—			(70		)	—			(70		)
Net cash (used in) provided by investing activities	(16,424		)	16			(6,492		)	535			(22,365		)
Cash flows from financing activities:
Proceeds from issuance of debt	850,000			—			—			—			850,000
Deferred financing costs	(19,200		)	—			—			—			(19,200		)
Repayments of debt	(835,000		)	(654		)	(43		)	—			(835,697		)
Borrowings under revolver	—			39,956			—			—			39,956
Repayments on revolver	—			(68,305		)	—			—			(68,305		)
Capital contributions received	—			100			435			(535		)	—
Intercompany dividends paid	—			(45,646		)	(2,011		)	47,657			—
Dividends and distributions on common stock	(52,358		)	—			—			—			(52,358		)
Proceeds from issuance of Vector stock	43,230			—			—			—			43,230
Net cash used in financing activities	(13,328		)	(74,549		)	(1,619		)	47,122			(42,374		)
Net (decrease) increase in cash and cash equivalents	(58,034		)	21,340			(149		)	—			(36,843		)
Cash and cash equivalents, beginning of period	279,815			14,798			98,917			—			393,530
Cash and cash equivalents, end of period	$	221,781		$	36,138		$	98,768		$	—		$	356,687

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Three Months Ended March 31, 2016
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by (used in) operating activities	$	12,633		$	30,671		$	1,917		$	(50,157	)	$	(4,936	)
Cash flows from investing activities:
Sale of investment securities	46,497			4,721			—			—			51,218
Maturities of investment securities	343			—			—			—			343
Purchase of investment securities	(29,112		)	—			—			—			(29,112		)
Investments in real estate ventures	—			—			(5,795		)	—			(5,795		)
Investments in real estate, net	—			—			(49		)	—			(49		)
Distributions from investments in real estate ventures	—			—			12			—			12
Increase in cash surrender value of life insurance policies	—			(62		)	—			—			(62		)
Increase in restricted assets	(3		)	(3,014		)	—			—			(3,017		)
Pay downs of investment securities	2,174			—			—			—			2,174
Investments in subsidiaries	(471		)	—			—			471			—
Capital expenditures	(18		)	(2,618		)	(1,279		)	—			(3,915		)
Net cash provided by (used in) investing activities	19,410			(973		)	(7,111		)	471			11,797
Cash flows from financing activities:
Proceeds from issuance of debt	—			—			57			—			57
Repayments of debt	—			(1,545		)	(31		)	—			(1,576		)
Borrowings under revolver	—			59,426			—			—			59,426
Repayments on revolver	—			(41,482		)	—			—			(41,482		)
Capital contributions received	—			100			371			(471		)	—
Intercompany dividends paid	—			(34,908		)	(15,249		)	50,157			—
Dividends and distributions on common stock	(48,876		)	—			—			—			(48,876		)
Contributions from non-controlling interest	—			—			248			—			248
Distributions to non-controlling interest	—			—			(5,978		)	—			(5,978		)
Net cash used in financing activities	(48,876		)	(18,409		)	(20,582		)	49,686			(38,181		)
Net (decrease) increase in cash and cash equivalents	(16,833		)	11,289			(25,776		)	—			(31,320		)
Cash and cash equivalents, beginning of period	111,470			12,375			116,523			—			240,368
Cash and cash equivalents, end of period	$	94,637		$	23,664		$	90,747		$	—		$	209,048

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Sep. 29, 2016
Accounting Policies [Abstract]
Stock dividend paid to company stockholders			5.00%
Embedded Derivative [Line Items]
Fair market value of embedded derivatives at the midpoint of the inputs	$ 103,761	$ 112,332
Minimum
Embedded Derivative [Line Items]
Fair market value of embedded derivatives at the midpoint of the inputs	103,371	111,653
Maximum
Embedded Derivative [Line Items]
Fair market value of embedded derivatives at the midpoint of the inputs	$ 104,600	$ 113,090

Summary of Significant Accounting Policies (Net Income (Loss) for Purposes of Determining Basic and Diluted EPS) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounting Policies [Abstract]
Net (loss) income attributed to Vector Group Ltd.	$ (4,227)	$ 19,338
Income attributed to participating securities	0	(633)
Income attributed to participating securities	0	(633)
Net (loss) income available to common shares attributed to Vector Group Ltd.	(4,227)	18,705
Net (loss) income available to common shares attributed to Vector Group Ltd.	$ (4,227)	$ 18,705

Summary of Significant Accounting Policies (Basic and Diluted Earnings Per Share (in shares)) (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounting Policies [Abstract]
Weighted-average shares for basic EPS	125,568,396	123,961,803
Plus incremental shares related to stock options and non-vested restricted stock	0	204,145
Weighted-average shares for diluted EPS	125,568,396	124,165,948

Summary of Significant Accounting Policies (Antidilutive Securities Excluded from Earnings Per Share) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Weighted-average shares of non-vested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average expense per share (in dollars per share)	$ 19.14	$ 21.67
Antidiliitive securities excluded from computation (in shares)	1,959,376	1,260,000
Weighted-average number of shares issuable upon conversion of debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidiliitive securities excluded from computation (in shares)	26,140,250	26,140,251
Weighted-average conversion price (in dollars per share)	$ 18.70	$ 18.70

Summary of Significant Accounting Policies (Schedule of Other, Net) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounting Policies [Abstract]
Interest and dividend income	$ 1,745	$ 1,324
Loss on long-term investment	(35)	0
Impairment of long-term investments	0	(282)
Other (expense) income	(51)	5
Other, net	$ 1,659	$ 1,047

This item represents the net total realized and unrealized gain (loss) included in earnings for the period as a result of selling or holding marketable securities categorized as trading, available-for-sale, or held-to-maturity, including the unrealized holding gain (loss) of held-to-maturity securities transferred to the trading security category and the cumulative unrealized gain (loss) which was included in other comprehensive income (a separate component of shareholders' equity) for available-for-sale securities transferred to trading securities during the period. Additionally, this item would include any gains (losses) realized during the period from the sale of investments accounted for under the cost method of accounting and losses recognized for other than temporary impairments (OTTI) of the subject investments.

Summary of Significant Accounting Policies (Other Current Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Accounts payable	$ 11,170	$ 10,573
Accrued promotional expenses	24,188	23,763
Accrued excise and payroll taxes payable, net	20,802	10,044
Accrued interest	20,114	35,449
Commissions payable	16,732	6,164
Accrued salary and benefits	13,232	26,958
Other current liabilities	18,868	22,901
Total other current liabilities	$ 125,106	$ 135,852

Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets, Net) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 70,815	$ 70,815
Intangibles with a finite life, net	3,227	3,592
Total goodwill and other intangible assets, net	261,553	261,918
Intangible asset associated with benefit under the MSA
Indefinite-lived Intangible Assets [Line Items]
Indefinite life intangibles:	107,511	107,511
Trademark - Douglas Elliman
Indefinite-lived Intangible Assets [Line Items]
Indefinite life intangibles:	$ 80,000	$ 80,000

Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Leaf tobacco	$ 43,111	$ 46,253
Other raw materials	3,245	3,733
Work-in-process	430	633
Finished goods	65,862	65,052
Inventories at current cost	112,648	115,671
LIFO adjustments	(25,687)	(25,837)
Inventory, net	$ 86,961	$ 89,834

Inventories (Narrartive) (Details) - USD ($) $ in Thousands	3 Months Ended
Inventories (Narrartive) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory [Line Items]
LIFO adjustments	$ 25,687	$ 25,837
Capitalized MSA cost in finished goods inventory	17,554	17,364
Inventories
Inventory [Line Items]
Federal excise tax in inventory	26,395	25,888
Liggett \| Inventories
Inventory [Line Items]
Purchase commitments	6,963
Leaf tobacco
Inventory [Line Items]
LIFO adjustments	17,632	17,632
Other raw materials
Inventory [Line Items]
LIFO adjustments	215	214
Work-in-process
Inventory [Line Items]
LIFO adjustments	29	29
Finished goods
Inventory [Line Items]
LIFO adjustments	$ 7,811	$ 7,962

Investment Securities Available for Sale (Components of Investment Securities Available for Sale) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 134,375	$ 140,760
Gross Unrealized Gains	15,857	16,403
Gross Unrealized Losses	(1)	(260)
Fair Value	150,231	156,903
Marketable equity securities
Schedule of Available-for-sale Securities [Line Items]
Cost	34,944	34,956
Gross Unrealized Gains	15,481	16,141
Gross Unrealized Losses	0	(254)
Fair Value	50,425	50,843
Mutual funds invested in fixed income securities
Schedule of Available-for-sale Securities [Line Items]
Cost	20,620	20,507
Gross Unrealized Gains	106	81
Gross Unrealized Losses	(1)	(6)
Fair Value	20,725	20,582
Total marketable debt securities by maturity dates
Schedule of Available-for-sale Securities [Line Items]
Cost	78,811	85,297
Gross Unrealized Gains	270	181
Gross Unrealized Losses	0	0
Fair Value	$ 79,081	$ 85,478

Investment Securities Available for Sale (Maturity Dates of Marketable Debt Securities) (Details) $ in Thousands	Mar. 31, 2017 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Market Value	$ 79,081
Under 1 Year	9,034
1 Year up to 5 Years	63,192
More than 5 Years	6,855
U.S. Government securities
Schedule of Available-for-sale Securities [Line Items]
Market Value	28,494
Under 1 Year	0
1 Year up to 5 Years	28,494
More than 5 Years	0
Corporate securities
Schedule of Available-for-sale Securities [Line Items]
Market Value	38,877
Under 1 Year	7,035
1 Year up to 5 Years	31,842
More than 5 Years	0
U.S. mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Market Value	6,043
Under 1 Year	0
1 Year up to 5 Years	31
More than 5 Years	6,012
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Market Value	843
Under 1 Year	0
1 Year up to 5 Years	0
More than 5 Years	843
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Market Value	1,999
Under 1 Year	1,999
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	2,325
Under 1 Year	0
1 Year up to 5 Years	2,325
More than 5 Years	0
Foreign fixed-income securities
Schedule of Available-for-sale Securities [Line Items]
Market Value	500
Under 1 Year	0
1 Year up to 5 Years	500
More than 5 Years	$ 0

Investment Securities Available for Sale (Securities with Continuous Unrealized Losses) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
In loss position for Less than 12 months, Fair Value	$ 5,167	$ 15,999
In loss position for Less than 12 months, Unrealized Losses	(1)	(260)
Total Fair Value	5,167	15,999
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	(1)	(260)
Marketable equity securities
Schedule of Available-for-sale Securities [Line Items]
In loss position for Less than 12 months, Fair Value		5,746
In loss position for Less than 12 months, Unrealized Losses		(254)
Total Fair Value		5,746
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		(254)
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	5,167	10,253
In loss position for Less than 12 months, Unrealized Losses	(1)	(6)
Total Fair Value	5,167	10,253
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	$ (1)	$ (6)

Investment Securities Available for Sale (Gross Realized Gains and Losses on Available-for-Sale Securities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Gross realized gains on sales	$ 215	$ 759
Gross realized losses on sales	(65)	(192)
Gains on sale of investment securities available for sale	150	567
Gross realized losses on other-than-temporary impairments	$ (39)	$ (4,813)

Investment Securities Available for Sale (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Gross realized losses on other-than-temporary impairments	$ (39)	$ (4,813)
Proceeds from investment securities sales	13,456	51,218
Maturities of investment securities	7,174	343
Morgans Hotel Group Co. [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross realized losses on other-than-temporary impairments		(4,772)
Corporate Securities and U.S. Government Securities
Schedule of Available-for-sale Securities [Line Items]
Maturities of investment securities	$ 8,038	$ 2,517

Long-Term Investments (Long-term Investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Long-term Investments [Abstract]
Investments accounted at cost	$ 57,376	$ 35,476
Investments accounted for under the equity method	16,420	17,721
Long-term investments	$ 73,796	$ 53,197

Long-Term Investments (Cost-Method Investments) (Details)	3 Months Ended
	Mar. 31, 2017 USD ($) investment	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)
Schedule of Cost-method Investments [Line Items]
Cost-method investments, carrying value	$ 57,376,000		$ 35,476,000
Cost-method investments, fair value	64,053,000		41,063,000
Cash distributions from cost method investments	(466,000)	$ (1,000,000)
Purchase of long-term investments	$ 22,400,000	0
Five New Investment Funds [Member]
Schedule of Cost-method Investments [Line Items]
Number of investments in funds \| investment	5
One Existing Investment [Member]
Schedule of Cost-method Investments [Line Items]
Number of investments in funds \| investment	1
Investment partnerships
Schedule of Cost-method Investments [Line Items]
Cost-method investments, carrying value	$ 57,376,000		34,975,000
Cost-method investments, fair value	64,053,000		40,569,000
Purchase of long-term investments		$ 0
Investment partnerships \| Five New Investment Funds [Member]
Schedule of Cost-method Investments [Line Items]
Purchase of long-term investments	21,400,000
Investment partnerships \| One Existing Investment [Member]
Schedule of Cost-method Investments [Line Items]
Purchase of long-term investments	1,000,000
Real estate partnership
Schedule of Cost-method Investments [Line Items]
Cost-method investments, carrying value	0		501,000
Cost-method investments, fair value	$ 0		$ 494,000

Long-Term Investments (Equity-Method Investments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Investments accounted for under the equity method	$ 16,420		$ 17,721
Proceeds from long-term equity method investment	240	$ 285
Equity in losses from investments	(1,061)	$ (1,671)
Indian Creek Investors LP (Indian Creek)
Schedule of Equity Method Investments [Line Items]
Investments accounted for under the equity method	$ 4,212		5,248
Equity-method ownership percentage	20.15%
Boyar Value Fund (Boyar)
Schedule of Equity Method Investments [Line Items]
Investments accounted for under the equity method	$ 8,138		7,816
Equity-method ownership percentage	31.99%
Quoted market value	$ 8,138
Ladenburg Thalmann Financial Services Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Equity-method ownership percentage	8.05%
Ladenburg Thalmann Financial Services Inc. (LTS)
Schedule of Equity Method Investments [Line Items]
Investments accounted for under the equity method	$ 4,070		4,657
Quoted market value	37,674
Castle Brands, Inc. (Castle)
Schedule of Equity Method Investments [Line Items]
Investments accounted for under the equity method	$ 0		$ 0
Equity-method ownership percentage	7.87%
Quoted market value	$ 19,640

New Valley LLC (Investment in Real Estate Ventures) (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2017 USD ($) venture	Mar. 31, 2017 USD ($) venture	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 227,249	$ 227,249		$ 221,258
Total contributions		1,436	$ 5,795
Distributions from real estate ventures, return on capital		7,003	931
Distributions from real estate ventures		0	12
Equity in earnings (losses) from real estate ventures		11,113	(507)
New Valley LLC
Schedule of Investments [Line Items]
Investments in real estate ventures	227,249	227,249		221,258
Total contributions		1,436	5,795
Total distributions from real estate ventures		7,003	943
Equity in earnings (losses) from real estate ventures		11,113	(507)
Total maximum exposure to loss	$ 234,575	234,575
Interest costs capitalized		$ 446	3,520
New Valley LLC \| Variable Interest Entity, Primary Beneficiary
Schedule of Investments [Line Items]
Number of real estate ventures \| venture	2	2
VIE's assets	$ 14,456	$ 14,456		14,385
New Valley LLC \| Variable Interest Entity, Not Primary Beneficiary \| Witkoff GP Partners LLC [Member]
Schedule of Investments [Line Items]
Range of ownership	15.00%	15.00%
Payments to acquire equity method investments	$ 1,170
Total maximum exposure to loss	1,174	$ 1,174
Committed future contributions	$ 18,830	$ 18,830
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	$ 180,290	$ 180,290		172,720
Total contributions		1,436	5,077
Total distributions from real estate ventures		6,200	258
Equity in earnings (losses) from real estate ventures		11,888	(1,183)
Total maximum exposure to loss	187,616	187,616
New Valley LLC \| Condominium and Mixed Use Development \| New York City SMSA
Schedule of Investments [Line Items]
Investments in real estate ventures	137,529	137,529		131,770
Total contributions		91	1,102
Total distributions from real estate ventures		6,200	258
Equity in earnings (losses) from real estate ventures		12,180	(669)
Total maximum exposure to loss	139,093	139,093
New Valley LLC \| Condominium and Mixed Use Development \| All other U.S. areas
Schedule of Investments [Line Items]
Investments in real estate ventures	42,761	42,761		40,950
Total contributions		1,345	3,975
Equity in earnings (losses) from real estate ventures		(292)	(514)
Total maximum exposure to loss	$ 48,523	$ 48,523
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	$ 8,212	$ 8,212		8,287
Total distributions from real estate ventures		152	0
Equity in earnings (losses) from real estate ventures		77	516
Total maximum exposure to loss	8,212	8,212
New Valley LLC \| Apartment Buildings \| All other U.S. areas
Schedule of Investments [Line Items]
Investments in real estate ventures	8,212	8,212		8,287
Total distributions from real estate ventures		152	0
Equity in earnings (losses) from real estate ventures		77	516
Total maximum exposure to loss	$ 8,212	$ 8,212
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	$ 23,694	$ 23,694		24,932
Total contributions		0	718
Equity in earnings (losses) from real estate ventures		(1,237)	(655)
Total maximum exposure to loss	23,694	23,694
New Valley LLC \| Hotels \| New York City SMSA
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 21,208	$ 21,208		21,895
Range of ownership	5.20%	5.20%
Total contributions		$ 0	718
Equity in earnings (losses) from real estate ventures		(687)	(580)
Total maximum exposure to loss	$ 21,208	21,208
New Valley LLC \| Hotels \| International
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 2,486	$ 2,486		3,037
Range of ownership	49.00%	49.00%
Equity in earnings (losses) from real estate ventures		$ (550)	(75)
Total maximum exposure to loss	$ 2,486	2,486
New Valley LLC \| Commercial
Schedule of Investments [Line Items]
Investments in real estate ventures	12,944	12,944		13,290
Total distributions from real estate ventures		101	135
Equity in earnings (losses) from real estate ventures		(245)	212
Total maximum exposure to loss	12,944	12,944
New Valley LLC \| Commercial \| New York City SMSA
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 2,944	$ 2,944		3,290
Range of ownership	49.00%	49.00%
Total distributions from real estate ventures		$ 101	135
Equity in earnings (losses) from real estate ventures		(245)	212
Total maximum exposure to loss	$ 2,944	2,944
New Valley LLC \| Commercial \| All other U.S. areas
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 10,000	$ 10,000		10,000
Range of ownership	2.10%	2.10%
Total maximum exposure to loss	$ 10,000	$ 10,000
New Valley LLC \| Other
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 2,109	$ 2,109		$ 2,029
Range of ownership	50.00%	50.00%
Total distributions from real estate ventures		$ 550	550
Equity in earnings (losses) from real estate ventures		630	603
Total maximum exposure to loss	$ 2,109	2,109
Douglas Elliman Realty, LLC
Schedule of Investments [Line Items]
Proceeds from commissions received		$ 3,310	$ 2,405

New Valley LLC (Combined Financial Statements for Unconsolidated Subsidiaries) (Details) - New Valley LLC - Condominium and Mixed Use Development - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement
Revenue	$ 128,278	$ 61,926
Cost of Goods Sold	102,195	32,803
Other Expenses	2,526	389
Income from continuing operations	$ 23,557	$ 28,734

New Valley LLC (Investments in Real Estate, net) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2015	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Schedule of Investments [Line Items]
Real estate investment, net		$ 23,618		$ 23,640
Escena
Schedule of Investments [Line Items]
Operating income		553	$ 508
New Valley LLC
Schedule of Investments [Line Items]
Real estate investment, net		23,618		23,640
New Valley LLC \| Escena
Schedule of Investments [Line Items]
Land and Land Improvements		8,907		8,907
Building and building improvements		1,878		1,878
Other		2,038		2,028
Investments in real estate, gross		12,823		12,813
Less accumulated depreciation		(2,123)		(2,021)
Real estate investment, net		10,700		10,792
New Valley LLC \| Sagaponack
Schedule of Investments [Line Items]
Real estate investment, net		$ 12,918		$ 12,848
Payments to acquire real estate	$ 12,502

Notes Payable, Long-Term Debt and Other Obligations (Details) - USD ($)					1 Months Ended		3 Months Ended
	Feb. 26, 2017	Jan. 27, 2017	May 09, 2016	Apr. 15, 2014	Jan. 31, 2017	Feb. 28, 2013	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations							$ 1,187,302,000		$ 1,203,249,000
Less: Debt issuance costs							(32,535,000)		(30,798,000)
Total notes payable, long-term debt and other obligations							1,154,767,000		1,172,451,000
Less: Current maturities							(10,996,000)		(39,508,000)
Amount due after one year							1,143,771,000		1,132,943,000
Fair value of derivatives embedded within convertible debt							103,761,000		112,332,000
Issuance of common stock (in shares)		2,000,000
Loss on extinguishment of debt							34,110,000	$ 0
Non-cash interest expense							11,836,000	7,956,000
Senior Notes \| 7.75% Senior Secured Notes due 2021, including premium of $0 and $13,954
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations							0		848,954,000
Premium							0		13,954,000
Interest rate	7.75%
Redemption price	103.875%		103.50%	106.75%
Loss on extinguishment of debt							34,110,000
Redemption premium and tender offer costs							32,356,000
Non-cash interest expense							1,754,000	$ 0
Net proceeds from issuance of debt			$ 236,900,000	$ 158,670,000		$ 438,250,000
Principal amount	$ 835,000,000		$ 235,000,000	$ 150,000,000		$ 450,000,000
Senior Notes \| 6.125% Senior Secured Notes due 2025
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations							850,000,000		0
Interest rate		6.125%
Indenture threshold for earnings for payment of dividends (less than)					$ 75,000,000
Leverage ratio requirement					3.0
Secured leverage ratio requirement					1.5
Redemption price					101.00%
Net proceeds from issuance of debt		$ 831,100,000
Principal amount		$ 850,000,000
Convertible Debt \| 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $100,513 and $108,480
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations							129,487,000		121,520,000
Unamortized discount							100,513,000		108,480,000
Fair value of derivatives embedded within convertible debt							$ 47,650,000		52,899,000
Interest rate							7.50%
Convertible Debt \| 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $67,162 and $71,247
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations							$ 191,588,000		187,503,000
Unamortized discount							67,162,000		71,247,000
Fair value of derivatives embedded within convertible debt							$ 56,111,000		59,433,000
Interest rate							5.50%
Line of Credit \| Liggett
Debt Instrument [Line Items]
Amount outstanding							$ 11,812,000
Remaining borrowing capacity							42,100,000
Line of Credit \| Revolving credit facility \| Liggett
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations							8,887,000		37,163,000
Line of Credit \| Term loan under credit facility \| Liggett
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations							2,925,000		2,999,000
Equipment loans \| Liggett
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations							3,874,000		4,519,000
Other
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations							$ 541,000		$ 591,000

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
	Mar. 31, 2017	Dec. 31, 2016	Nov. 30, 2012
Debt Instrument [Line Items]
Lending fee (in dollars per share)			$ 0.1
Fair value	$ 29,058		$ 3,204
Shares outstanding (in shares)	1,274,479	1,579,879	7,431,606
Shares returned (in shares)	305,400
Unamortized amount of issuance costs	$ 1,983	$ 2,140

Notes Payable, Long-Term Debt and Other Obligations (Convertible Notes Table) (Details) - Convertible Debt	3 Months Ended
	Mar. 31, 2017 $ / shares	Mar. 31, 2016	Dec. 31, 2016 $ / 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	0.0426185	0.0426185

Notes Payable, Long-Term Debt and Other Obligations (Non Cash Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Debt Instrument [Line Items]
Amortization of debt discount, net	$ 11,836	$ 7,956
Amortization of debt issuance costs	1,970	1,168
Non-cash Interest Expense	15,560	9,124
Senior Notes \| 7.75% Senior Secured Notes due 2021 [Member]
Debt Instrument [Line Items]
Amortization of debt discount, net	$ 1,754	$ 0

Notes Payable, Long-Term Debt and Other Obligations (Fair Value of Notes Payable and Long Term Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	$ 1,509,359	$ 1,570,732
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	$ 1,187,302	$ 1,203,249

Contingencies (Overview and Bonds) (Details) - Liggett - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2009
Loss Contingencies [Line Items]
Tobacco product liability legal expenses and costs	$ 3,137	$ 4,171
Engle Progeny Cases \| Florida
Loss Contingencies [Line Items]
Maximum bond required for judgments on appeal			$ 200,000
Bonds \| Putney, Calloway, Boatright and Ward Cases
Loss Contingencies [Line Items]
Security posted for appeal of judgment	$ 4,241

Contingencies (Cautionary Statement About Engle Progeny Cases) (Details) $ in Thousands	1 Months Ended		3 Months Ended
	Dec. 31, 2016 USD ($) case	Oct. 31, 2013 USD ($) case	Mar. 31, 2017 USD ($) case	Dec. 31, 2016 case
Engle Progeny Cases
Loss Contingencies [Line Items]
Cases with judgments (more than)			120
Liggett \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases with verdicts			25
Cases with verdicts in favor of plaintiffs			16
Cases with verdicts in favor of defendants			9
Cases with verdicts in favor of plaintiffs and punitive damages awarded			5
Cases settled	124	4,900
Amount of litigation settlement to (against) entity \| $	$ (17,650)	$ (110,000)
Liggett \| Irimi and Cohen [Member]
Loss Contingencies [Line Items]
Cases with verdicts where defendants motion for new trial granted			2
Liggett and Vector Tobacco \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases settled			179	2
Amount of litigation settlement to (against) entity \| $			$ (6,240)

Contingencies (Individual Actions) (Details)	Mar. 31, 2017 case
Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending	34
Liggett
Loss Contingencies [Line Items]
Cases pending	2
Liggett \| Individual Actions Cases \| Maryland
Loss Contingencies [Line Items]
Cases pending	16
Liggett \| Individual Actions Cases \| Florida
Loss Contingencies [Line Items]
Cases pending	6
Liggett \| Individual Actions Cases \| New York
Loss Contingencies [Line Items]
Cases pending	6
Liggett \| Individual Actions Cases \| Louisiana
Loss Contingencies [Line Items]
Cases pending	2
Liggett \| Individual Actions Cases \| West Virginia
Loss Contingencies [Line Items]
Cases pending	2
Liggett \| Individual Actions Cases \| Missouri
Loss Contingencies [Line Items]
Cases pending	1
Liggett \| Individual Actions Cases \| Ohio
Loss Contingencies [Line Items]
Cases pending	1

Contingencies (Engle Progeny Cases and Settlement) (Details) $ in Thousands	1 Months Ended							3 Months Ended
	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 ($)	Jul. 31, 1999 plaintiff	Mar. 31, 2017 USD ($) case	Dec. 31, 2016 USD ($) case	Mar. 31, 2016 USD ($)	Dec. 07, 2016 USD ($)
Loss Contingencies [Line Items]
Litigation settlement and judgment expense								$ 1,585		$ 2,350
Engle Progeny Cases
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff							3
Compensatory damages awarded						$ 12,704
Punitive damages awarded					$ 145,000,000
Number of favorable plaintiff verdicts \| plaintiff				1
Damages awarded and subsequently overturned				$ 5,831
Number of unfavorable plaintiff verdicts \| plaintiff				2
Liggett
Loss Contingencies [Line Items]
Cases pending \| case								2
Liggett \| Engle Progeny Cases
Loss Contingencies [Line Items]
Punitive damages awarded					$ 790,000
Cases settled \| case	124		4,900
Amount of litigation settlement to (against) entity	$ (17,650)		$ (110,000)
Litigation settlement amount paid in lump sum	$ 14,000		61,600
Litigation settlement, installment term		14 years
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			$ 48,000								$ 3,650
Litigation Settlement, Installment Payments Due, Interest Rate											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
Liggett and Vector Tobacco \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases settled \| case								179	2
Amount of litigation settlement to (against) entity								$ (6,240)
Cases pending \| case								115

Contingencies (Engle Progeny Judgments Schedule) (Details) - USD ($) $ in Thousands			1 Months Ended			3 Months Ended
	Jan. 06, 2016	Jun. 12, 2013	Apr. 30, 2017	Sep. 30, 2016	Nov. 30, 2014	Mar. 31, 2017
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						24,505
Punitive damages awarded						10,815
Liggett \| Pending Litigation
Loss Contingencies [Line Items]
Compensatory damages awarded						177
Punitive damages awarded						15
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
Liggett \| Santoro v. R.J. Reynolds [Member] \| Judicial Ruling
Loss Contingencies [Line Items]
Compensatory damages awarded						160
Punitive damages awarded						15
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
Apportioned fault percentage to defendant					85.00%
Subsequent Event [Member] \| Liggett \| Santoro v. R.J. Reynolds [Member]
Loss Contingencies [Line Items]
Compensatory damages awarded			$ 1,027
Punitive damages awarded			$ 15

Contingencies (Appeals of Engle Progeny Judgments, Maryland and Only Liggett Cases) (Details) - case	1 Months Ended
	Mar. 31, 2012	Mar. 31, 2017
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		34
Liggett
Loss Contingencies [Line Items]
Cases pending		2
Maryland \| Synergy Exposure Cases
Loss Contingencies [Line Items]
Cases pending		20
Maryland \| Liggett \| Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending		16

Contingencies (Class Actions, Health Care Cost Recovery Actions, and Upcoming Trials) (Details) $ in Thousands	1 Months Ended						3 Months Ended
	Dec. 31, 2016 case	Jul. 31, 2015 plaintiff case trial	Oct. 31, 2013 case	May 31, 2013 case	May 31, 2009	Jul. 31, 1999 plaintiff	Mar. 31, 2017 USD ($) defendant case	Dec. 31, 2016 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
Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending							34
Pending claims scheduled for trial							1
Liggett
Loss Contingencies [Line Items]
Cases pending							2
Liggett \| Class Actions
Loss Contingencies [Line Items]
Cases pending							3
Liggett \| Crow Creek Sioux Tribe v. American Tobacco Company
Loss Contingencies [Line Items]
Cases pending							1
Liggett \| Engle Progeny Cases
Loss Contingencies [Line Items]
Claims dismissed			4,900
Cases settled	124		4,900
Liggett and Vector Tobacco \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases pending							115
Cases settled							179	2
West Virginia \| Tobacco Litigation Personal Injury Cases
Loss Contingencies [Line Items]
Cases pending									750
Number of mistrials				2
Claims dismissed				1
Number of plaintiffs		30
Number of consolidated trials \| trial		6
Number of plaintiffs in each trial \| plaintiff		5
West Virginia \| Liggett \| Tobacco Litigation Personal Injury Cases
Loss Contingencies [Line Items]
Cases pending							90
West Virginia \| Liggett \| Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending							2

Contingencies (MSA and Other State Settlement Agreements) (Details)		3 Months Ended	25 Months Ended
	Dec. 29, 2016 USD ($)	Mar. 31, 2017 USD ($) sponsorship	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	$ 118,600,000
Payments for legal settlements	$ 102,000,000
Product Concentration Risk [Member] \| 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		3 Months Ended	48 Months Ended
	Sep. 30, 2016 USD ($)	Jun. 30, 2010 state	Mar. 31, 2017 USD ($) state	Dec. 31, 2016 USD ($)	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%
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		6
2003-2012 NPM Adjustment
Loss Contingencies [Line Items]
Settling states with term sheet			22
2004-2016 NPM Adjustment
Loss Contingencies [Line Items]
Non-settling states					19
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%
New Mexico \| 2003 NPM Adjustment
Loss Contingencies [Line Items]
Reduction in recovery \| $	$ 150
Pennsylvania, Maryland, and Missouri [Member] \| 2004-2010 NPM Adjustment
Loss Contingencies [Line Items]
Number of states agreed to single arbitration			3
Liggett and Vector Tobacco \| 2004-2010 NPM Adjustment
Loss Contingencies [Line Items]
Amounts accrued \| $			$ 19,000
Liggett and Vector Tobacco \| Cost of Sales \| Health Care Cost Recovery Actions, NPM Adjustment
Loss Contingencies [Line Items]
Settlement adjustment credit \| $			896	$ 21,739
Liggett \| 2011-2015 NPM Adjustment
Loss Contingencies [Line Items]
Amounts accrued \| $			$ 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
Loss Contingency, Punitive Damages and Attorney's Fees Sought, Value	$ 20,000,000

Contingencies (Activity in Accruals for MSA and Tobacco Litigation Schedule) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loss Contingency Accrual [Roll Forward]
Current liabilities, beginning balance	$ 19,851	$ 52,145
Expenses	33,538	17,339
NPM Settlement adjustment	33
Change in MSA obligations capitalized as inventory	189	(406)
Payments	(3,891)	(21,171)
Interest on withholding	63	232
Current liabilities, ending balance	54,049	51,391
Noncurrent liabilities, beginning balance	49,770	44,812
Expenses	0	0
NPM Settlement adjustment	(928)
Reclassification to/(from) non-current liabilities	4,266	3,252
Interest on withholding	670	568
Noncurrent liabilities, ending balance	45,246	42,128
Settled Litigation
Loss Contingency Accrual [Roll Forward]
Current liabilities, beginning balance	16,192	29,241
Expenses	31,928	14,835
NPM Settlement adjustment	33
Change in MSA obligations capitalized as inventory	189	(406)
Payments	0	0
Interest on withholding	0	35
Current liabilities, ending balance	48,342	43,705
Noncurrent liabilities, beginning balance	22,257	20,094
Expenses	0	0
NPM Settlement adjustment	(928)
Reclassification to/(from) non-current liabilities	0	0
Interest on withholding	0	0
Noncurrent liabilities, ending balance	21,329	20,094
Pending Litigation
Loss Contingency Accrual [Roll Forward]
Current liabilities, beginning balance	3,659	22,904
Expenses	1,610	2,504
NPM Settlement adjustment	0
Change in MSA obligations capitalized as inventory	0	0
Payments	(3,891)	(21,171)
Interest on withholding	63	197
Current liabilities, ending balance	5,707	7,686
Noncurrent liabilities, beginning balance	27,513	24,718
Expenses	0	0
NPM Settlement adjustment	0
Reclassification to/(from) non-current liabilities	4,266	3,252
Interest on withholding	670	568
Noncurrent liabilities, ending balance	$ 23,917	$ 22,034

Contingencies (Other Matters) (Details) $ in Thousands	Mar. 31, 2017 USD ($)
Liggett Vector Brands \| Bonds \| Maximum
Loss Contingencies [Line Items]
Estimate of possible loss	$ 500

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost — benefits earned during the period	$ 141	$ 137
Interest cost on projected benefit obligation	1,266	1,355
Expected return on assets	(1,356)	(1,519)
Amortization of net loss (gain)	501	464
Net expense	552	437
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost — benefits earned during the period	1	1
Interest cost on projected benefit obligation	92	97
Expected return on assets	0	0
Amortization of net loss (gain)	(13)	(19)
Net expense	$ 80	$ 79

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
(Loss) income before provision for income taxes	$ (7,007)	$ 35,756
Income tax (benefit) expense using estimated annual effective income tax rate	(2,639)	14,314
Impact of discrete items, net	(143)	49
Income tax (benefit) expense	$ (2,782)	$ 14,363

Investments and Fair Value Measurements (Fair Value Measurements) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Mar. 31, 2017
Assets:
Investment securities available for sale		$ 156,903	$ 150,231
Liabilities:
Fair value of derivatives embedded within convertible debt		112,332	103,761
Long-term investments		53,197	73,796
5.5% Variable Interest Senior Convertible Debentures due 2020 \| Convertible Debt
Liabilities:
Fair value of derivatives embedded within convertible debt		59,433	$ 56,111
Interest rate			5.50%
Equity securities
Assets:
Investment securities available for sale		50,843	$ 50,425
Mutual funds invested in fixed income securities
Assets:
Investment securities available for sale		20,582	20,725
Fair Value, Measurements, Recurring
Assets:
Investment securities available for sale		156,903	150,231
Total		453,924	424,600
Liabilities:
Fair value of derivatives embedded within convertible debt		112,332	103,761
Fair Value, Measurements, Recurring \| Equity securities
Assets:
Investment securities available for sale		50,843	50,425
Fair Value, Measurements, Recurring \| Mutual funds invested in fixed income securities
Assets:
Investment securities available for sale		20,582	20,725
Fair Value, Measurements, Recurring \| U.S. Government securities
Assets:
Investment securities available for sale		30,642	28,494
Fair Value, Measurements, Recurring \| Corporate securities
Assets:
Investment securities available for sale		36,687	38,877
Fair Value, Measurements, Recurring \| U.S. mortgage-backed securities
Assets:
Investment securities available for sale		6,500	6,043
Fair Value, Measurements, Recurring \| Commercial mortgage-backed securities
Assets:
Investment securities available for sale		1,398	843
Fair Value, Measurements, Recurring \| Commercial paper
Assets:
Investment securities available for sale		8,980	1,999
Fair Value, Measurements, Recurring \| Index-linked U.S. bonds
Assets:
Investment securities available for sale		770	2,325
Fair Value, Measurements, Recurring \| Foreign fixed-income securities
Assets:
Investment securities available for sale		501	500
Fair Value, Measurements, Recurring \| Fixed income securities
Assets:
Investment securities available for sale		85,478	79,081
Fair Value, Measurements, Recurring \| Money market funds
Assets:
Cash and cash equivalents		248,552	218,809
Fair Value, Measurements, Recurring \| Commercial paper
Assets:
Cash and cash equivalents		41,247	48,335
Fair Value, Measurements, Recurring \| Certificates of deposit
Assets:
Cash and cash equivalents		2,982	2,985
Fair Value, Measurements, Recurring \| Bonds
Assets:
Cash and cash equivalents		4,240	4,240
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Investment securities available for sale		71,425	71,150
Total		324,217	294,199
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	50,425
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	20,725
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) \| Commercial paper
Assets:
Investment securities available for sale		0	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	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	218,809
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Commercial paper
Assets:
Cash and cash equivalents		0	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	4,240
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets:
Investment securities available for sale		85,478	79,081
Total		129,707	130,401
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	28,494
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate securities
Assets:
Investment securities available for sale		36,687	38,877
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. mortgage-backed securities
Assets:
Investment securities available for sale		6,500	6,043
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Commercial mortgage-backed securities
Assets:
Investment securities available for sale		1,398	843
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Commercial paper
Assets:
Investment securities available for sale		8,980	1,999
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Index-linked U.S. bonds
Assets:
Investment securities available for sale		770	2,325
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Foreign fixed-income securities
Assets:
Investment securities available for sale		501	500
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Fixed income securities
Assets:
Investment securities available for sale		85,478	79,081
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	48,335
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Certificates of deposit
Assets:
Cash and cash equivalents		2,982	2,985
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	103,761
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) \| Commercial paper
Assets:
Investment securities available for sale		0	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	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	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
Nonrecurring nonfinancial assets subject to fair value measurements		6,396
Gain (loss) on long-term investments	$ (1,203)
Gain (loss) on long-term investments and real estate held for sale	$ (1,203)
Impairment charge included in earnings		1,203
Long-term investments		7,599
Fair Value, Measurements, Nonrecurring \| Significant Unobservable Inputs (Level 3)
Liabilities:
Long-term investments, fair value		6,396
Nonrecurring nonfinancial assets subject to fair value measurements		$ 6,396

Investments and Fair Value Measurements (Quantitative Information about Level 3 Fair Value Measurements) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt	$ 103,761		$ 112,332
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	$ 103,761		$ 112,332
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)	$ 20.80		$ 22.74
Convertible trading price (as a percentage of par value)	112.94%	114.69%
Volatility	19.54%	19.47%
Implied credit spread	4.50%	5.00%
Significant Unobservable Inputs (Level 3) \| Discounted cash flow \| Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Implied credit spread	4.00%	4.50%
Significant Unobservable Inputs (Level 3) \| Discounted cash flow \| Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Implied credit spread	5.00%	5.50%

Segment Information (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2017

Mar. 31, 2016

$ 415,208

$ 380,800

Equity in earnings (losses) from real estate ventures

52,931

62,159

11,113

(507)

5,029

5,164

4,588

3,915

1,585

2,350

Corporate and Other

Equity in earnings (losses) from real estate ventures

(7,382)

(6,805)

387

442

Tobacco

Income from MSA settlement

^[1]

257,454

221,015

(895)

1,585

2,350

Tobacco | Operating Segments

221,015

Equity in earnings (losses) from real estate ventures

59,770

61,483

2,420

2,440

1,096

2,618

E-Cigarettes

E-Cigarettes | Operating Segments

Equity in earnings (losses) from real estate ventures

(77)

(193)

Real Estate

Real Estate | Operating Segments

157,754

159,747

157,754

159,747

Equity in earnings (losses) from real estate ventures

620

7,674

11,113

(507)

2,222

2,282