View Filing Data

Operating, selling, administrative and general expenses

$ 538,432

$ 481,488

$ 959,356

$ 910,454

Cost of sales:

Total cost of sales

368,174

332,766

654,194

627,041

93,359

86,336

185,673

175,412

Litigation settlement and judgment expense (income)

655

525

655

(1,944)

Operating income

76,244

61,861

118,834

109,945

Other income (expenses):

Interest expense

(32,753)

(48,421)

(70,273)

(94,368)

Change in fair value of derivatives embedded within convertible debt

3,788

10,717

14,137

21,284

Equity in earnings (losses) from real estate ventures

6,391

(2,112)

3,952

(8,672)

Other, net

3,096

9,711

11,898

9,179

Income before provision for income taxes

56,766

31,756

78,548

37,368

Income tax expense

17,459

12,760

24,208

14,708

Net (income) loss attributed to non-controlling interest

39,307

18,996

54,340

22,660

(1,178)

(80)

2,369

Net income attributed to Vector Group Ltd.

$ 39,307

$ 17,818

$ 54,260

$ 25,029

Per basic common share:

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

$ 0.27

$ 0.12

$ 0.36

$ 0.15

Per diluted common share:

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

$ 0.27

$ 0.12

$ 0.35

$ 0.15

Tobacco

Revenues:

Litigation settlement and judgment expense (income)

^[1]

$ 294,501

$ 274,833

$ 551,257

$ 541,949

Cost of sales:

Total cost of sales

^[1]

204,461

192,761

381,764

377,723

525

Real estate

Revenues:

Litigation settlement and judgment expense (income)

243,931

206,655

408,099

368,505

Cost of sales:

Total cost of sales

163,713

$ 140,005

272,430

$ 249,318

$ 655

[1]	Revenues and cost of sales include federal excise taxes of $119,943, $115,970, $224,576, and $228,771, respectively.

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Tax portion of revenues and cost of goods sold	$ 119,943	$ 115,970	$ 224,576	$ 228,771

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 39,307	$ 18,996	$ 54,340	$ 22,660
Net unrealized gains (losses) on investment securities available for sale:
Change in net unrealized gains (losses)	346	(230)	723	(922)
Net unrealized (gains) losses reclassified into net income	(4)	229	(37)	824
Net unrealized gains (losses) on investment securities available for sale	342	(1)	686	(98)
Net change in pension-related amounts
Amortization of loss	491	441	948	883
Net change in pension-related amounts	491	441	948	883
Other comprehensive income	833	440	1,634	785
Income tax effect on:
Change in net unrealized gains (losses) on investment securities	(94)	63	(198)	252
Net unrealized (gains) losses reclassified into net income on investment securities	1	(63)	10	(226)
Pension-related amounts	(135)	(121)	(260)	(242)
Income tax provision on other comprehensive income	(228)	(121)	(448)	(216)
Other comprehensive income, net of tax	605	319	1,186	569
Comprehensive income	39,912	19,315	55,526	23,229
Comprehensive loss (income) attributed to non-controlling interest	0	(1,178)	(80)	2,369
Comprehensive income attributed to Vector Group Ltd.	$ 39,912	$ 18,137	$ 55,446	$ 25,598

Condensed Consolidated Statements of Stockholders' Deficiency - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2019

Jun. 30, 2018

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Beginning Balance (in shares)

140,914,642

$ (590,101)

$ (394,219)

$ (547,366)

$ (331,760)

(1,550)

(12,857)

Total other comprehensive income

39,307

18,996

54,340

22,660

605

319

1,186

569

Distributions and dividends on common stock

(58,797)

(55,912)

(117,574)

(111,812)

Restricted stock grant

Effect of stock dividend

^[1]

Surrender of shares in connection with restricted stock vesting

(48)

(221)

Stock-based compensation

$ 2,338

2,456

4,774

4,840

Distributions to non-controlling interest

(359)

$ (285)

(359)

Ending Balance (in shares)

140,953,900

Increase (Decrease) in Stockholders' Equity [Roll Forward]

$ (606,696)

$ (428,719)

$ (606,696)

$ (428,719)

Common Stock

Beginning Balance (in shares)

140,899,065

134,365,424

140,914,642

134,365,424

Restricted stock grant (in shares)

$ 14,090

$ 13,437

$ 14,092

$ 13,437

60,000

31,666

60,000

31,666

Restricted stock grant

$ 6

$ 3

$ 6

$ 3

Effect of stock dividend (in shares)

6,719,855

^[1]

Effect of stock dividend

$ 672

^[1]

Surrender of shares in connection with restricted stock vesting (in shares)

(5,165)

(20,742)

Surrender of shares in connection with restricted stock vesting

$ (1)

$ (3)

Ending Balance (in shares)

140,953,900

141,116,945

140,953,900

141,116,945

Additional Paid-in Capital

$ 14,095

$ 14,112

$ 14,095

$ 14,112

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Distributions and dividends on common stock

(2,285)

(2,453)

(4,550)

(4,837)

Restricted stock grant

(6)

(3)

(6)

(3)

Surrender of shares in connection with restricted stock vesting

(47)

(218)

Stock-based compensation

2,338

2,456

4,774

4,840

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Accumulated Deficit

(580,581)

(459,996)

(542,169)

(414,785)

3,147

1,094

Distributions and dividends on common stock

39,307

17,818

54,260

25,029

(56,512)

(53,459)

(113,024)

(106,975)

Effect of stock dividend

(672)

^[1]

AOCI Attributable to Parent

(597,786)

(496,309)

(597,786)

(496,309)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

(24,098)

(18,357)

(19,982)

(12,571)

Total other comprehensive income

(4,697)

(6,036)

605

319

1,186

569

Increase (Decrease) in Stockholders' Equity [Roll Forward]

(23,493)

(18,038)

(23,493)

(18,038)

Non-controlling Interest

488

70,697

693

82,159

(7,915)

Distributions to non-controlling interest

1,178

(2,369)

(359)

(285)

(359)

Summary of Significant Accounting Policies

$ 488

$ 71,516

$ 488

$ 71,516

[1]	Represents the effect of the September 27, 2018 stock dividend on the second quarter 2018 common-stock activity.

Condensed Consolidated Statements of Stockholders' Deficiency (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity [Abstract]
Distributions and dividends on common stock (in dollars per share)	$ 0.40	$ 0.38	$ 0.80	$ 0.76

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Statement of Cash Flows [Abstract]
Net cash provided by operating activities	$ 98,102	$ 122,426
Cash flows from investing activities:
Sale of investment securities	12,942	2,647
Maturities of investment securities	28,610	10,598
Purchase of investment securities	(44,222)	(12,402)
Investments in real estate ventures	(21,908)	(4,343)
Distributions from investments in real estate ventures	23,200	27,134
Increase in cash surrender value of life insurance policies	(789)	(809)
Decrease in restricted assets	668	262
Proceeds from sale of fixed assets	8	0
Capital expenditures	(6,320)	(8,616)
Repayments of notes receivable	0	32
Purchase of subsidiaries	(668)	(403)
Pay downs of investment securities	545	928
Investments in real estate, net	(1,153)	(1,009)
Net cash (used in) provided by investing activities	(9,087)	14,019
Cash flows from financing activities:
Deferred financing costs	(33)	0
Repayments of debt	(230,771)	(987)
Borrowings under revolver	172,224	134,310
Repayments on revolver	(169,727)	(137,877)
Dividends and distributions on common stock	(118,748)	(112,462)
Distributions to non-controlling interest	(285)	(359)
Net cash used in financing activities	(347,340)	(117,375)
Net (decrease) increase in cash, cash equivalents and restricted cash	(258,325)	19,070
Cash, cash equivalents and restricted cash, beginning of period	591,729	310,937
Cash, cash equivalents and restricted cash, end of period	$ 333,404	$ 330,007

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

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 Liggett Group LLC (“Liggett”), Vector Tobacco Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), 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. Liggett Vector Brands coordinates Liggett and Vector Tobacco’s sales and marketing efforts. Certain references to “Liggett” refer to the Company’s tobacco operations, including the business of Liggett and Vector Tobacco, unless otherwise specified. New Valley is engaged in the real estate business.

The unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and, in management’s opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair statement of the results for the periods presented. Accordingly, they do not include all 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, 2018 filed with the Securities and Exchange Commission (“SEC”). The consolidated results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the entire year.


(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)	Earnings Per Share (“EPS”):

Information concerning the Company’s common stock has been adjusted to give retroactive effect to the 5% stock dividend distributed to Company stockholders on September 27, 2018. All per share amounts and references to share amounts have been updated to reflect the retrospective effect of the stock dividend.

Net income for purposes of determining basic EPS was as follows:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Net income attributed to Vector Group Ltd.	$	39,307		$	17,818		$	54,260		$	25,029
Income attributed to participating securities	(2,027		)	(1,692		)	(4,029		)	(3,464		)
Net income applicable to common shares attributed to Vector Group Ltd.	$	37,280		$	16,126		$	50,231		$	21,565

Net income for purposes of determining diluted EPS was as follows:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Net income attributed to Vector Group Ltd.	$	39,307		$	17,818		$	54,260		$	25,029
Income attributable to 7.5% Variable Interest Senior Convertible Notes	—			—			(1,246		)	—
Income attributed to participating securities	(2,027		)	(1,692		)	(4,029		)	(3,464		)
Net income applicable to common shares attributed to Vector Group Ltd.	$	37,280		$	16,126		$	48,985		$	21,565

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



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2019	2018	2019	2018
Weighted-average shares for basic EPS	139,532,405	139,301,817	139,514,592	139,295,176
Plus incremental shares related to convertible debt	—	—	1,380,717	—
Plus incremental shares related to stock options and non-vested restricted stock	11,507	335,827	13,564	336,287
Weighted-average shares for diluted EPS	139,543,912	139,637,644	140,908,873	139,631,463

The following non-vested restricted stock and shares issuable upon the conversion of convertible debt were outstanding during the three and six months ended June 30, 2019 and 2018, but were not included in the computation of diluted EPS because the impact of the per share expense associated with the restricted stock were greater than the average market price of the common shares during the respective periods and the common shares issuable under the convertible debt were anti-dilutive to EPS.



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Weighted-average shares of non-vested restricted stock	1,340,781		—		1,340,781		—
Weighted-average expense per share	$	18.82	$	—	$	18.82	$	—
Weighted-average number of shares issuable upon conversion of debt	10,901,963		28,819,626		10,901,963		28,819,626
Weighted-average conversion price	$	21.28	$	16.96	$	21.28	$	16.96


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

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 June 30, 2019, the range of estimated fair values of the Company’s embedded derivatives was between $17,221 and $17,355. The Company recorded the fair value of its embedded derivatives at the approximate midpoint of the range at $17,287 as of June 30, 2019. At December 31, 2018, the range of estimated fair values of the Company’s embedded derivatives was between $31,371 and $31,519. The Company recorded the fair value of its embedded derivatives at the midpoint of the range at $31,424 as of December 31, 2018. The estimated fair value of the Company’s embedded derivatives could change significantly based on future market conditions. (See Note 8.)


(e)	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 (a) entities in which the equity investment at risk is not sufficient to finance its activities without additional subordinated financial support; (b) as a group, the equity investors at risk lack (1) the power to direct the activities of a legal entity that most significantly impact the entity’s economic performance, (2) the obligation to absorb the expected losses of the entity, or (3) the right to receive the expected residual returns of the entity; or (c) as a group, the equity investors 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 VIE, any unfunded capital commitments to the VIE, and, in some cases, guarantees in connection with debt on the specific project. The Company’s maximum exposure to loss in its investment in 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.


(f)	Other, Net:

Other, net consisted of:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Interest and dividend income	$	3,139		$	2,145		$	6,347		$	4,067
Equity in (losses) earnings from investments	(1,685		)	4,813			(323		)	5,975
Net gains (losses) recognized on investment securities	2,315			3,006			7,088			(333		)
Net periodic benefit cost other than the service costs	(575		)	(254		)	(1,116		)	(507		)
Other (expense) income	(98		)	1			(98		)	(23		)
Other, net	$	3,096		$	9,711		$	11,898		$	9,179


(g)	Other Assets:

Other assets consisted of:



	June 30, 2019		December 31, 2018
Restricted assets	$	6,327	$	6,306
Prepaid pension costs	24,489		23,869
Other assets	64,581		60,177
Total other assets	$	95,397	$	90,352


(h)	Other Current Liabilities:

Other current liabilities consisted of:



	June 30, 2019		December 31, 2018
Accounts payable	$	9,852	$	13,144
Accrued promotional expenses	26,586		37,940
Accrued excise and payroll taxes payable, net	16,044		14,612
Accrued interest	32,375		38,673
Commissions payable	26,698		12,975
Accrued salary and benefits	21,231		30,228
Contract liabilities	8,159		—
Allowance for sales returns	7,042		6,935
Other current liabilities	27,799		25,831
Total other current liabilities	$	175,786	$	180,338


(i)	Goodwill and Other Intangible Assets, Net:

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



	June 30, 2019		December 31, 2018
Goodwill	$	78,008	$	77,568

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

Intangibles with a finite life, net	563		1,532

Total goodwill and other intangible assets, net	$	266,082	$	266,611


(i)	Reconciliation of Cash, Cash Equivalents and Restricted Cash:

The components of “Cash, cash equivalents and restricted cash” in the Statement of Cash Flows were as follows:



	June 30, 2019		December 31, 2018
Cash and cash equivalents	$	323,861	$	584,581
Restricted cash and cash equivalents included in other current assets	5,086		2,697
Restricted cash and cash equivalents included in other assets	4,457		4,451
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	333,404	$	591,729

Amounts included in current restricted assets and non-current restricted assets represent cash and cash equivalents required to be deposited into escrow for bonds required to appeal adverse product liability judgments, amounts required for letters of credit related to office leases, and certain deposit requirements for banking arrangements. The restrictions related to the appellate bonds will remain in place until the appeal process has been completed. The restrictions related to the letters of credit will remain in place for the duration of the respective lease. The restrictions related to the banking arrangements will remain in place for the duration of the arrangement.

(j) New Accounting Pronouncements:

Accounting Standards Updates (“ASU”) adopted in 2019:

In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements (“ASU 2018-09”). This standard does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates were applicable immediately while others were effective for the Company’s fiscal year beginning January 1, 2019. Adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements.

In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which allows for stranded tax effects in accumulated other comprehensive income resulting from the Tax Act to be reclassified to retained earnings. The Company adopted ASU 2018-02 effective January 1, 2019. The reclassification from the adoption of this standard resulted in a decrease of $4,697 to accumulated deficit and an increase of $4,697 to accumulated other comprehensive loss.

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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11 “Leases (Topic 842): Targeted Improvements” (ASU 2018-11). ASU 2018-10 clarifies certain areas within ASU 2016-02. Prior to ASU 2018-11, a modified retrospective transition was required for financing or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. ASU 2018-11 allows entities an additional transition method to the existing requirements whereby an entity could adopt the provisions of ASU 2016-02 by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. ASU 2018-11 also allows a practical expedient that permits lessors to not separate non-lease components from the associated lease component if certain conditions are present. In December 2018, the FASB also issued ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, which requires lessors to exclude lessor costs paid directly to a third party by lessees from lease revenues and expenses, provides an election for lessors to exclude sales taxes and other similar taxes collected from lessees from consideration in the contract, and clarifies lessors accounting for variable payments related to lease and nonlease components. ASU 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2018-20 was effective for the Company’s fiscal year beginning January 1, 2019 and subsequent interim periods.

ASUs to be adopted in future periods:

In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. The guidance requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of the new guidance on our condensed consolidated financial statements.

In October 2018, the FASB issued ASU No. 2018-16, Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (“ASU 2018-16”), which amends ASC 815, Derivatives and Hedging. This ASU adds the OIS rate based on SOFR to the list of permissible benchmark rates for hedge accounting purposes. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Adoption of ASU 2018-16 will be on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The Company is currently assessing the impact the adoption of ASU 2018-16 will have on the Company’s condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2018-15 will have on the Company’s condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). ASU 2018-14 eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The ASU also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. ASU 2018-14 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. Early adoption is permitted. The adoption of ASU 2018-14 will impact financial statement disclosure with no impact on operating results.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which is designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. The ASU eliminates disclosures such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU also adds new disclosure requirements for Level 3 measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of ASU 2018-13 will impact financial statement disclosure with no impact on operating results.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), sets forth a current expected credit loss model that changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on the Company’s condensed consolidated financial statements.

Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Revenue Recognition Accounting Pronouncement Adoption

On January 1, 2018, the Company adopted Topic 606 applying the modified retrospective method. The following practical expedients and optional disclosure exemptions available under Topic 606 have been applied:


1.	The Company applied the optional exemption in paragraph 606-10-50-14 of Topic 606, and has not disclosed the amount of the transaction price allocated to the remaining performance obligations for the Real Estate property management business because the contracts to provide property management services are typically annual contracts.

The Company applied the optional exemption in paragraph 606-10-50-14A of Topic 606, and has not disclosed the amount of the transaction price allocated to the remaining performance obligations for the Real Estate development marketing business because the transaction prices in these contracts are comprised entirely of variable consideration based on the ultimate selling price of each unit in the subject property.

Revenue Recognition Policies

Revenue is measured based on a consideration specified in a contract with a customer less any sales incentives. Revenue is recognized when (a) an enforceable contract with a customer exists, that has commercial substance, and collection of substantially all consideration for services is probable; and (b) the performance obligations to the customer are satisfied either over time or at a point in time.

Tobacco sales: Revenue from cigarette sales, which include federal excise taxes billed to customers, are recognized upon shipment of cigarettes when control has passed to the customer. Average collection terms for Tobacco sales range between three and twelve days from the time that the cigarettes are shipped to the customer. The Company records a liability for goods estimated to be returned in other current liabilities and the associated receivable for anticipated federal excise tax refunds in other current assets on the condensed consolidated balance sheet. The liability for returned goods is based principally on sales volumes and historical return rates. The estimated costs of sales incentives, including customer incentives and trade promotion activities, are based principally on historical experience and are accounted for as reductions in Tobacco revenue. Expected payments for sales incentives are included in other current liabilities on the Company’s condensed consolidated balance sheet. The Company accounts for shipping and handling costs as fulfillment costs as part of cost of sales.

Real estate sales: Real estate commissions and other payments earned by the Company’s real estate brokerage businesses are recognized as revenue when the real estate sale is completed or lease agreement is executed, which is the point in time that the performance obligation is satisfied. Any commission and other payments received in advance are deferred until the satisfaction of the performance obligation. Corresponding agent commission expenses, including any advance commission or other direct expense payments, are deferred and recognized as cost of sales concurrently with related revenues.

The Company’s Real Estate revenue contracts with customers do not have multiple material performance obligations to customers under Topic 606, except for contracts in the Company’s development marketing business. Contracts in the development

marketing business provide the Company with the exclusive right to sell units in a subject property for a commission fee per unit sold calculated as a percentage of the sales price of each unit. Accordingly, a performance obligation exists for each unit in the development marketing property under contract, and a portion of the total contract transaction price is allocated to and recognized at the time each unit is sold.

The total contract transaction price is allocated to each unit in the subject property and recognized when the performance obligation, i.e. the sale of each unit, is satisfied. Accordingly, the transaction price allocated to the remaining performance obligations for the development marketing business represents variable consideration allocated entirely to wholly unsatisfied performance obligations.

Under development marketing service arrangements, dedicated staff are required for a subject property and these costs are typically reimbursed from the customer through advance payments that are recoupable from future commission earnings. Advance payments received and associated direct costs paid are deferred, allocated to each unit in the subject property, and recognized at the time of the completed sale of each unit.

Development marketing service arrangements also include direct fulfillment costs incurred in advance of the satisfaction of the performance obligation. The Company capitalizes costs incurred in fulfilling a contract with a customer if the fulfillment costs 1) relate directly to an existing contract or anticipated contract, 2) generate or enhance resources that will be used to satisfy performance obligations in the future, and 3) are expected to be recovered. These costs are amortized over the estimated customer relationship period which is the contract term. The Company uses an amortization method that is consistent with the pattern of transfer of goods or services to its customers by allocating these costs to each unit in the subject property and expensing these costs as each unit sold is closed over the contract.

Commission revenue is recognized at the time the performance obligation is met for commercial leasing contracts, which is when the lease agreement is executed, as there are no further performance obligations, including any amounts of future payments under extended payment terms.

Property management revenue arrangements consist of providing operational and administrative services to manage a subject property. Fees for these services are typically billed and collected monthly. Property management service fees are recognized as revenue over time using the output method as the performance obligations under the customer arrangement are satisfied each month.

Title insurance commission fee revenue is earned when the sale of the title insurance policy is completed, which corresponds to the point in time when the underlying real estate sale is completed, which is when the performance obligation is satisfied.

Disaggregation of Revenue

In the following table, revenue is disaggregated by major product line for the Tobacco segment:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Tobacco Segment Revenues:
Core Discount Brands - EAGLE 20’s, PYRAMID, GRAND PRIX, LIGGETT SELECT, and EVE	$	267,277	$	248,370	$	500,383	$	489,901
Other Brands	27,224		26,463		50,874		52,048
Total tobacco revenues	$	294,501	$	274,833	$	551,257	$	541,949

In the following table, revenue is disaggregated by major services line and primary geographical market for the Real Estate segment:



	Three Months Ended June 30, 2019
	New York City		Northeast		Southeast		West		Total
Real Estate Segment Revenues:
Commission brokerage income	$	104,301	$	39,880	$	31,324	$	31,653	$	207,158
Development marketing	22,718		—		436		22		23,176
Property management revenue	10,048		170		—		—		10,218
Title fees	—		2,400		—		—		2,400
Total Douglas Elliman revenue	137,067		42,450		31,760		31,675		242,952
Other real estate revenues	—		—		—		979		979
Total real estate revenues	$	137,067	$	42,450	$	31,760	$	32,654	$	243,931



	Three Months Ended June 30, 2018
	New York City		Northeast		Southeast		West		Total
Real Estate Segment Revenues:
Commission brokerage income	$	76,175	$	43,228	$	31,909	$	28,099	$	179,411
Development marketing	10,559		129		4,788		49		15,525
Property management revenue	8,560		181		—		—		8,741
Title fees	—		1,922		—		—		1,922
Total Douglas Elliman revenue	95,294		45,460		36,697		28,148		205,599
Other real estate revenues	—		—		—		1,056		1,056
Total real estate revenues	$	95,294	$	45,460	$	36,697	$	29,204	$	206,655



	Six Months Ended June 30, 2019
	New York City		Northeast		Southeast		West		Total
Real Estate Segment Revenues:
Commission brokerage income	$	169,980	$	70,991	$	54,295	$	50,182	$	345,448
Development marketing	34,104		—		3,066		29		37,199
Property management revenue	18,215		354		—		—		18,569
Title fees	—		3,633		—		—		3,633
Total Douglas Elliman revenue	222,299		74,978		57,361		50,211		404,849
Other real estate revenues	—		—		—		3,250		3,250
Total real estate revenues	$	222,299	$	74,978	$	57,361	$	53,461	$	408,099



	Six Months Ended June 30, 2018
	New York City		Northeast		Southeast		West		Total
Real Estate Segment Revenues:
Commission brokerage income	$	136,583	$	75,906	$	56,307	$	49,511	$	318,307
Development marketing	21,169		252		5,081		243		26,745
Property management revenue	16,698		381		—		—		17,079
Title fees	—		2,911		—		—		2,911
Total Douglas Elliman revenue	174,450		79,450		61,388		49,754		365,042
Other real estate revenues	—		—		—		3,463		3,463
Total real estate revenues	$	174,450	$	79,450	$	61,388	$	53,217	$	368,505

Contract Balances

The following table provides information about contracts assets and contract liabilities from development marketing and commercial leasing contracts with customers:




	June 30, 2019		January 1, 2019
Receivables, which are included in accounts receivable - trade, net	$	2,321	$	2,050
Contract assets, net, which are included in other current assets	9,481		9,264
Payables, which are included in other current liabilities	1,373		1,082
Contract liabilities, which are included in other current liabilities	8,159		7,071
Contract assets, net, which are included in other assets	18,693		15,794
Contract liabilities, which are included in other liabilities	34,398		30,445

Receivables and payables relate to commission receivables and commissions payable from the Real Estate commercial leasing contracts for which the performance obligation has been satisfied, have extended payment terms and are expected to be received and paid in the next twelve months. Receivables increased $271 for the six-month period ended June 30, 2019 primarily due to revenue accrued as performance obligations are satisfied of $2,206, offset by cash collections. Correspondingly, payables increased $291 primarily due to additional expense accruals as performance obligations are satisfied of $1,532, offset by cash payments.

Contract assets increased by $3,116 during the six months ended June 30, 2019 due to $8,217 of payments made for direct fulfillment costs incurred in advance of the satisfaction of the performance obligations for Real Estate development marketing contracts, offset by costs recognized for units closed during the quarter.

Contract liabilities relate to payments received in advance of the performance obligations being satisfied under the contract for the Real Estate development marketing and are recognized as revenue at the points in time when the Company performs under the contract. Performance obligations related to the Real Estate development marketing contracts are considered satisfied when each unit is closed. Development marketing projects tend to span four to six years from the time the Company enters into the contract with the developer to the time that all of the sales of the units in a subject property are closed. The timing for sales closings are dependent upon several external factors outside the Company’s control, including but not limited to, economic factors, seller and buyer actions, construction timing and other real estate market factors. Accordingly, all contract liabilities and contract costs associated with development marketing are considered long-term until closing dates for unit sales are scheduled. As of June 30, 2019, the Company estimates approximately $8,159 of contract liabilities will be recognized as revenue within the next twelve months.

Contract liabilities increased by $5,041 during the six months ended June 30, 2019 due to $10,747 of advance payments received from customer prior to the satisfaction of performance obligations for Real Estate development marketing contracts, offset by revenue recognized for units sold during the quarter. The Company recognized revenue of $5,031 for the six months ended June 30, 2019, that were included in the contract liabilities balances at January 1, 2019.

Topic 606 requires an entity to disclose the revenue recognized in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods (for example, due to changes in transaction price). There was no revenue recognized relating to performance obligations satisfied or partially satisfied in prior periods for the three and six months ended June 30, 2019 and 2018, respectively.

Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

LEASES

Leasing Accounting Pronouncement Adoption

On January 1, 2019, the Company adopted ASU No. 2016-02 - Leases (Topic 842) applying the modified retrospective method and the option presented under ASU 2018-11 to transition only active leases as of January 1, 2019 with a cumulative effect adjustment as of that date. All comparative periods prior to January 1, 2019 retain the financial reporting and disclosure requirements of ASC 840. The Company elected the package of practical expedients permitted under the transition guidance within the new standard. The package of three expedients includes: 1) the ability to carry forward the historical lease classification, 2) the elimination of the requirement to reassess whether existing or expired agreements contain leases, and 3) the elimination of the requirement to reassess initial direct costs. The Company also elected the practical expedient related to short-term leases without purchase options reasonably certain to exercise, allowing it to exclude leases with terms of less than twelve (12) months from capitalization for all asset classes. The Company did not elect the hindsight practical expedient when determining the lease terms. The adoption of the new standard resulted in the recording of right-of-use (“ROU”) assets and lease liabilities of $128,890 and $153,676, respectively, as of January 1, 2019. The difference between the ROU assets and lease liabilities reflects the reclassification of historical deferred rent balances of approximately $22,881, and tenant improvement receivable of $355 as adjustments to the ROU asset balances, and an adjustment that increased accumulated deficit by $1,550 to recognize the impairment in ROU assets for asset groups previously identified as being impaired. The standard did not materially impact the Company’s consolidated net earnings and had no impact on cash flows. The new standard had no material impact on liquidity and had no impact on the Company’s debt-covenant compliance under its current debt agreements.

Leasing Policies

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets and lease liabilities on the Company’s balance sheets. Finance leases are included in investments in real estate, net, property, plant and equipment and current and long-term portions of notes payable and long-term debt on the Company’s balance sheets.

ROU assets represent the Company’s right to use an underlying asset for the duration of the lease term. Lease liabilities represent the Company’s obligation to make lease payments as determined by the lease agreement. Lease liabilities are recorded at commencement for the net present value of future lease payments over the lease term. The discount rate used is generally the Company’s estimated incremental borrowing rate unless the lessor’s implicit rate is readily determinable. Discount rates are calculated periodically to estimate the rate the Company would pay to borrow the funds necessary to obtain an asset of similar value, over a similar term, with a similar security. ROU assets are recorded and recognized at commencement for the lease liability amount, initial direct costs incurred and is reduced for lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease cost is recognized on a straight-line basis over the shorter of the useful life of the asset and the lease term.

The Company has lease agreements with lease and non-lease components; the Company has elected the accounting policy to combine lease and non-lease components for all underlying asset classes.

Leases

The Company has operating and finance leases for corporate and sales offices, and certain vehicles and equipment. The leases have remaining lease terms of one year to 15 years, some of which include options to extend for up to 5 years, and some of which include options to terminate the leases within one year. However, the Company in general is not reasonably certain to exercise options to renew or terminate, and therefore renewal and termination options are not considered in the lease term or the ROU asset and lease liability balances. The Company’s lease population includes purchase options on equipment leases that are included in the lease payments when reasonably certain to be exercised. The Company’s lease population does not include any residual value guarantees. The Company’s lease population does not contain any material restrictive covenants.

The Company has leases with variable payments, most commonly in the form of Common Area Maintenance (“CAM”) and tax charges which are based on actual costs incurred. These variable payments were excluded from the ROU asset and lease liability balances since they are not fixed or in-substance fixed payments. Variable payments are expensed as incurred.

The components of lease expense were as follows:



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2019		2019
Operating lease cost	$	9,630	$	18,505
Short-term lease cost	279		513
Variable lease cost	898		1,690

Finance lease cost:
Amortization	63		119
Interest on lease liabilities	4		7
Total lease cost	$	10,874	$	20,834

Supplemental cash flow information related to leases was as follows:



	Six Months Ended
	June 30,
	2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	18,440
Operating cash flows from finance leases	7
Financing cash flows from finance leases	113

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	13,061
Finance leases	123

Supplemental balance sheet information related to leases was as follows:



	June 30,
	2019
Operating leases:
Operating lease right-of-use assets	$	135,134

Current operating lease liability	$	20,339
Non-current operating lease liability	139,729
Total operating lease liabilities	$	160,068

Finance leases:
Investments in real estate, net	$	133		⁽¹⁾

Property, plant and equipment, at cost	$	309
Accumulated amortization	(166		)
Property and equipment, net	$	143

Current portion of notes payable and long-term debt	$	168
Notes payable, long-term debt and other obligations, less current portion	108
Total finance lease liabilities	$	276

Weighted average remaining lease term:
Operating leases	8.62
Finance leases	2.60

Weighted average discount rate:
Operating leases	11.05		%
Finance leases	8.46		%


⁽¹⁾	Included in Investments in real estate, net on the condensed consolidated balance sheet are financing lease equipment, at cost of $729 and accumulated amortization of $596 as of June 30, 2019.

As of June 30, 2019, maturities of lease liabilities were as follows:



	Operating Leases			Finance Leases
Year Ending December 31:
Remainder of 2019	$	19,389		$	118
2020	33,597			86
2021	30,914			33
2022	28,012			31
2023	26,460			31
2024	21,265			8
Thereafter	100,120			—
Total lease payments	259,757			307
Less imputed interest	(99,689		)	(31		)
Total	$	160,068		$	276

Under ASC 840, Leases, future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows:



	Lease Commitments		Sublease Rentals		Net
Year Ending December 31:
2019	$	35,973	$	69	$	35,904
2020	29,917		—		29,917
2021	27,592		—		27,592
2022	25,185		—		25,185
2023	23,589		—		23,589
Thereafter	104,126		—		104,126
Total	$	246,382	$	69	$	246,313

The Company has one lease for office space wherein the lessor is an affiliate of a significant shareholder of the Company. This lease represents $1,446 of the ROU asset balances and $1,505 of lease liability balances as of June 30, 2019. The rent expense for this lease was approximated $114 and $229 for the three and six months ended June 30, 2019.

As of June 30, 2019, the Company had additional operating leases for office space and equipment, that have not yet commenced, of $1,102 in undiscounted lease payments. The operating leases will commence in the third and fourth quarter of 2019 with lease terms ranging between 2 to 10 years.

Leases

LEASES

Leasing Accounting Pronouncement Adoption

Leasing Policies

The Company has lease agreements with lease and non-lease components; the Company has elected the accounting policy to combine lease and non-lease components for all underlying asset classes.

Leases

The components of lease expense were as follows:



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2019		2019
Operating lease cost	$	9,630	$	18,505
Short-term lease cost	279		513
Variable lease cost	898		1,690

Finance lease cost:
Amortization	63		119
Interest on lease liabilities	4		7
Total lease cost	$	10,874	$	20,834

Supplemental cash flow information related to leases was as follows:



	Six Months Ended
	June 30,
	2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	18,440
Operating cash flows from finance leases	7
Financing cash flows from finance leases	113

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	13,061
Finance leases	123

Supplemental balance sheet information related to leases was as follows:



	June 30,
	2019
Operating leases:
Operating lease right-of-use assets	$	135,134

Current operating lease liability	$	20,339
Non-current operating lease liability	139,729
Total operating lease liabilities	$	160,068

Finance leases:
Investments in real estate, net	$	133		⁽¹⁾

Property, plant and equipment, at cost	$	309
Accumulated amortization	(166		)
Property and equipment, net	$	143

Current portion of notes payable and long-term debt	$	168
Notes payable, long-term debt and other obligations, less current portion	108
Total finance lease liabilities	$	276

Weighted average remaining lease term:
Operating leases	8.62
Finance leases	2.60

Weighted average discount rate:
Operating leases	11.05		%
Finance leases	8.46		%


⁽¹⁾	Included in Investments in real estate, net on the condensed consolidated balance sheet are financing lease equipment, at cost of $729 and accumulated amortization of $596 as of June 30, 2019.

As of June 30, 2019, maturities of lease liabilities were as follows:



	Operating Leases			Finance Leases
Year Ending December 31:
Remainder of 2019	$	19,389		$	118
2020	33,597			86
2021	30,914			33
2022	28,012			31
2023	26,460			31
2024	21,265			8
Thereafter	100,120			—
Total lease payments	259,757			307
Less imputed interest	(99,689		)	(31		)
Total	$	160,068		$	276

Under ASC 840, Leases, future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows:



	Lease Commitments		Sublease Rentals		Net
Year Ending December 31:
2019	$	35,973	$	69	$	35,904
2020	29,917		—		29,917
2021	27,592		—		27,592
2022	25,185		—		25,185
2023	23,589		—		23,589
Thereafter	104,126		—		104,126
Total	$	246,382	$	69	$	246,313

Inventories

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories consisted of:



	June 30, 2019			December 31, 2018
Leaf tobacco	$	47,108		$	42,917
Other raw materials	3,782			3,750
Work-in-process	331			1,931
Finished goods	67,751			63,937
Inventories at current cost	118,972			112,535
LIFO adjustments	(22,038		)	(21,538		)
	$	96,934		$	90,997

All of the Company’s inventories at June 30, 2019 and December 31, 2018 are reported under the LIFO method. The $22,038 LIFO adjustment as of June 30, 2019 decreases the current cost of inventories by $15,432 for Leaf tobacco, $219 for Other raw materials, $25 for Work-in-process and $6,362 for Finished goods. The $21,538 LIFO adjustment as of December 31, 2018 decreased the current cost of inventories by $14,932 for Leaf tobacco, $219 for Other raw materials, $25 for Work-in-process and $6,362 for Finished goods.

Liggett enters into purchase commitments with third-party providers for leaf tobacco. The future quantities of leaf tobacco and prices are established at the date of the commitments. At June 30, 2019, Liggett had tobacco purchase commitments of approximately $25,795. Liggett has a single source supply agreement for reduced ignition propensity cigarette paper through 2019.

Each period, the Company capitalizes in inventory the 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 $17,815 and $16,001 at June 30, 2019 and December 31, 2018, respectively. Federal excise tax capitalized in inventory was $26,437 and $26,419 at June 30, 2019 and December 31, 2018, respectively.

Investment Securities At Fair Value

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Investment Securities At Fair Value

INVESTMENT SECURITIES AT FAIR VALUE

Investment securities at fair value consisted of the following:



	June 30, 2019		December 31, 2018
Debt securities available for sale	$	88,831	$	84,367
Equity securities at fair value	46,269		47,202
Total investment securities at fair value	$	135,100	$	131,569

Net gains (losses) recognized on investment securities were as follows:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Net gains recognized on equity securities	$	2,311		$	3,236		$	7,051		$	491
Net gains (losses) recognized on debt securities available for sale	6			(5		)	42			(13		)
Gross realized losses on other-than-temporary impairments	(2		)	(225		)	(5		)	(811		)
Net gains (losses) recognized on investment securities	$	2,315		$	3,006		$	7,088		$	(333	)

Sales of investment securities totaled $12,942 and $2,647 and proceeds from early redemptions by issuers totaled $29,155 and $11,526 for the six months ended June 30, 2019 and 2018, respectively, mainly from the sales and redemptions of Corporate securities and U.S. Government securities.

(a) Debt Securities Available for Sale

The components of debt securities available for sale at June 30, 2019 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities	$	87,977	$	854	$	—	$	88,831
Total debt securities available for sale	$	87,977	$	854	$	—	$	88,831

The table below summarizes the maturity dates of debt securities available for sale at June 30, 2019.



Investment Type:	Fair Value		Under 1 Year		1 Year up to 5 Years		More than 5 Years
U.S. Government securities	$	19,535	$	7,797	$	11,738	$	—
Corporate securities	47,427		13,341		34,086		—
U.S. mortgage-backed securities	8,623		4,026		4,597		—
Commercial mortgage-backed securities	394		29		365		—
Commercial paper	9,026		9,026		—		—
Index-linked U.S. bonds	2,664		2,664		—		—
Foreign fixed-income securities	1,162		654		508		—
Total debt securities available for sale by maturity dates	$	88,831	$	37,537	$	51,294	$	—

The components of debt securities available for sale at December 31, 2018 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities	$	84,199	$	168	$	—	$	84,367
Total debt securities available for sale	$	84,199	$	168	$	—	$	84,367

There were no available-for-sale debt securities with continuous unrealized losses for less than 12 months and 12 months or greater at June 30, 2019 and December 31, 2018, respectively.

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



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Gross realized gains on sales	$	9		$	2		$	47		$	2
Gross realized losses on sales	(3		)	(7		)	(5		)	(15		)
Net gains (losses) recognized on debt securities available for sale	$	6		$	(5	)	$	42		$	(13	)

Gross realized losses on other-than-temporary impairments	$	(2	)	$	(225	)	$	(5	)	$	(811	)

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.

(b) Equity Securities at Fair Value

Equity securities at fair value consisted of the following:



	June 30, 2019		December 31, 2018
Marketable equity securities	$	24,257	$	26,010
Mutual funds invested in fixed income securities	22,012		21,192
Total equity securities at fair value	$	46,269	$	47,202

The following is a summary of unrealized and realized net gains and losses recognized in net income on equity securities at fair value during the three and six months ended June 30, 2019 and 2018, respectively:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Net gains recognized on equity securities ⁽¹⁾	$	2,311	$	3,236	$	7,051	$	491
Less: Net gains recognized on equity securities sold ⁽²⁾	278		53		410		183
Net unrealized gains recognized on equity securities still held at the reporting date	$	2,033	$	3,183	$	6,641	$	308

⁽¹⁾

Includes $1,911 and $1,505 of net gains recognized on equity securities at fair value that qualify for the net asset value (“NAV”) practical expedient during the three months ended June 30, 2019 and 2018, respectively, and $5,470 and $3,236 of net gains recognized on equity securities at fair value that qualify for the NAV practical expedient during the six months ended June 30, 2019 and 2018, respectively. These equity securities are included in the “Long-term investments” line item on the condensed consolidated balance sheet and are further discussed in Note 6.


⁽²⁾	Includes $215 and $649 of gains recognized on sales of equity securities at fair value that qualify for the NAV practical expedient during the three and six months ended June 30, 2019. These equity securities are included in the “Long-term investments” line item on the condensed consolidated balance sheet and are further discussed in Note 6.

The Company’s marketable equity securities and mutual funds invested in fixed-income securities are classified as Level 1 under the fair value hierarchy disclosed in Note 12. Their fair values are based on quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets.

Equity securities without readily determinable fair values that do not qualify for the NAV practical expedient consisted of an investment in the common stock of a reinsurance company at June 30, 2019 and December 31, 2018, respectively. The total carrying value of this investment was $5,000 and was included in “Other assets” on the condensed consolidated balance sheet at June 30, 2019 and December 31, 2018, respectively. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the three and six months ended June 30, 2019 and 2018, respectively.

Long-Term Investments

6 Months Ended

Jun. 30, 2019

Long-term Investments [Abstract]

Long-Term Investments

LONG-TERM INVESTMENTS

Long-term investments consisted of the following:



	June 30, 2019		December 31, 2018
Equity securities at fair value that qualify for the NAV practical expedient	$	53,175	$	54,628
Equity-method investments	10,639		11,631
	$	63,814	$	66,259

(a) Equity Securities at Fair Value That Qualify for the NAV Practical Expedient

The estimated fair value of the Company’s equity securities at fair value that qualify for the NAV practical expedient 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 accordance with Subtopic 820-10, these investments are not classified under the fair value hierarchy disclosed in Note 12 because they are investments measured at fair value using the NAV practical expedient.

The Company redeemed a portion of one of its investments that qualify for the NAV practical expedient during June 2019. The Company recorded $4,271 of in-transit redemptions from the proceeds in Other current assets at June 30, 2019.

(b) Equity-Method Investments:

Equity-method investments consisted of the following:



	June 30, 2019		December 31, 2018
Indian Creek Investors LP (“Indian Creek”)	$	719	$	1,167
Boyar Value Fund (“Boyar”)	9,444		8,384
Ladenburg Thalmann Financial Services Inc. (“LTS”)	476		2,080
Castle Brands, Inc. (“Castle”)	—		—
	$	10,639	$	11,631

At June 30, 2019, the Company’s ownership percentages in Indian Creek, Boyar, LTS and Castle were 12.52%, 34.57%, 10.29% and 7.63%, 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 fair value of the investment in Boyar, based on the quoted market price as of June 30, 2019, was $9,444, equal to its carrying value. At June 30, 2019, the aggregate fair values of the LTS and Castle investments, based on the quoted market price, were $52,106 and $5,932, respectively.

The Company received cash distributions of $855 and $779 from the Company’s equity-method investments for the six months ended June 30, 2019 and 2018, respectively. The Company recognized equity in losses from equity-method investments of $1,685 and equity in earnings from equity-method investments of $4,813 for the three months ended June 30, 2019 and 2018, respectively. The Company recognized equity in losses from equity-method investments of $323 and equity in earnings of $5,975 for the six months ended June 30, 2019 and 2018, 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 equity-method 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 equity-method investments are carried on the condensed consolidated balance sheet at cost under the equity method of accounting. The fair values disclosed above for Boyar, LTS and Castle would be classified as Level 1 under the fair value hierarchy disclosed in Note 12 if such assets were recorded on the condensed consolidated balance sheet at fair value. The fair values are based on quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets.

The estimated fair value of the Company’s investment in Indian Creek represents the NAV per share and was provided by the partnership based on the indicated market value of the underlying assets or investment portfolio. The investment is illiquid and its ultimate realization is subject to the performance of the underlying partnership and its management by the general partners. In accordance with Subtopic 820-10, this investment would not be classified under the fair value hierarchy disclosed in Note 12 if the asset was recorded on the condensed consolidated balance sheet at fair value because it is measured at fair value using the NAV practical expedient.

New Valley LLC

6 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

New Valley LLC

NEW VALLEY LLC

Investments in real estate ventures:

New Valley 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 aggregates 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 ⁽¹⁾	June 30, 2019		December 31, 2018
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	84,593	$	65,007
All other U.S. areas	15.0% - 48.5%	28,903		31,392
		113,496		96,399
Hotels:
New York City SMSA	5.2% - 18.4%	2,615		15,782
International	49.0%	1,970		2,334
		4,585		18,116
Commercial:
New York City SMSA	49.0%	2,121		1,867
All other U.S. areas	1.6%	7,354		7,053
		9,475		8,920

Other:	15.0% - 50.0%	17,210		17,670
Investments in real estate ventures		$	144,766	$	141,105

______________________

⁽¹⁾ The Range of Ownership reflects New Valley’s estimated current ownership percentage. New Valley’s actual ownership percentage as well as the percentage of earnings and cash distributions may ultimately differ as a result of a number of factors including potential dilution, financing or admission of additional partners.

Contributions:

The components of New Valley’s contributions to its investments in real estate ventures were as follows:



	Six Months Ended June 30,
	2019		2018
Condominium and Mixed Use Development:
New York City SMSA	$	21,537	$	533
	21,537		533
Hotels:
New York City SMSA	172		167
	172		167

Other:	199		3,643
Total contributions	$	21,908	$	4,343

During the six months ended June 30, 2019, New Valley did not make certain capital contributions to Monad Terrace, a Condominium and Mixed Use Development located in All other U.S. areas. The Company’s ownership percentage was reduced from 18.0% to 17.9% for the six months ended June 30, 2019. For other ventures where New Valley previously held an investment, New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners

during the six months ended June 30, 2019 and June 30, 2018. New Valley’s direct investment percentage for these ventures did not significantly change.

Distributions:

The components of distributions received by New Valley from its investments in real estate ventures were as follows:



	Six Months Ended June 30,
	2019		2018
Condominium and Mixed Use Development:
New York City SMSA	$	571	$	34,490
All other U.S. areas	1,279		—
	1,850		34,490
Apartment Buildings:
All other U.S. areas	3		201
	3		201
Hotels:
New York City SMSA	21,572		—
	21,572		—
Commercial:
New York City SMSA	9		—
All other U.S. areas	129		341
	138		341

Other	1,697		644
Total distributions	$	25,260	$	35,676

Of the distributions received by New Valley from its investment in real estate ventures, $2,060 and $8,542 were from distributions of earnings for the six months ended June 30, 2019 and 2018, respectively, and $23,200 and $27,134 were a return of capital for the six months ended June 30, 2019 and 2018, respectively. Distributions from earnings are included in cash from operations in the Condensed Consolidating Statements of Cash Flows, while distributions that are returns of capital are included in cash flows from investing activities in the Condensed Consolidating Statements of Cash Flows.

Equity in Earnings (Losses) from Real Estate Ventures:

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Condominium and Mixed Use Development:
New York City SMSA	$	(1,120	)	$	(152	)	$	(3,226	)	$	(3,613	)
All other U.S. areas	(2,258		)	(321		)	(2,366		)	(826		)
	(3,378		)	(473		)	(5,592		)	(4,439		)
Apartment Buildings:
All other U.S. areas	3			(1,717		)	3			(3,297		)
	3			(1,717		)	3			(3,297		)
Hotels:
New York City SMSA	8,942			(636		)	8,234			(1,450		)
International	122			(143		)	(364		)	(568		)
	9,064			(779		)	7,870			(2,018		)
Commercial:
New York City SMSA	384			(121		)	263			(388		)
All other U.S. areas	79			913			371			1,143
	463			792			634			755

Other:	239			65			1,037			327
Equity in earnings (losses) from real estate ventures	$	6,391		$	(2,112	)	$	3,952		$	(8,672	)

As part of the Company’s ongoing assessment of the carrying values of its investments in real estate ventures, the Company determined that the fair value of three New York City SMSA and one All other U.S. areas Condominium and Mixed Use Development ventures were less than their carrying value as of June 30, 2019. The Company determined that the impairment was other than temporary. The Company recorded an impairment charge as a component of equity in earnings from real estate ventures of $3,866 for the three and six months ended June 30, 2019.

As part of the Company’s ongoing assessment of the carrying values of its investments in real estate ventures, the Company determined that the fair value of a New York City SMSA Condominium and Mixed Use Development venture was less than its carrying value as of June 30, 2018. The Company determined that the impairment was other than temporary. The Company recorded an impairment charge as a component of equity in losses from real estate ventures of $2,700 and $10,174, of which $2,113 and $8,467 were attributed to the Company for the three and six months ended June 30, 2018, respectively.

Investment in Real Estate Ventures Entered into during 2019:

In February 2019, New Valley invested $500 for an approximate 37.0% interest in 352 6th, LLC. The joint venture plans to develop a condominium complex. 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 352 6th, LLC was $517 at June 30, 2019.

In April 2019, New Valley invested $10,018 for an approximate 17.0% interest in Meatpacking Plaza. The joint venture plans to construct a mixed use development. 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 Meatpacking Plaza was $10,251 at June 30, 2019.

Also in April 2019, New Valley invested $5,000 for an approximate 5.5% interest in 9 DeKalb. The joint venture plans to develop a mixed use development. 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 9 DeKalb was $5,116 at June 30, 2019.

VIE Consideration:

The Company has determined that New Valley is the primary beneficiary of two real estate 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 $976 and $1,387 as of June 30, 2019 and December 31, 2018, respectively. Those assets are owned by the VIEs, not the Company. Neither of the two consolidated VIEs had recourse liabilities as of June 30, 2019 and December 31, 2018. 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 VIEs 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 from its investments in real estate ventures consisted of the net carrying value of the venture adjusted for any future capital commitments and/or guarantee arrangements. The maximum exposure to loss was as follows:



	June 30, 2019
Condominium and Mixed Use Development:
New York City SMSA	$	89,515
All other U.S. areas	41,403
	130,918
Hotels:
New York City SMSA	2,615
International	1,970
	4,585
Commercial:
New York City SMSA	2,121
All other U.S. areas	7,354
	9,475

Other:	31,988
Total maximum exposure to loss	$	176,966

New Valley capitalized $1,688 and $3,003 of interest costs into the carrying value of its ventures whose projects were currently under development for the three and six months ended June 30, 2019. New Valley capitalized $2,094 and $4,303 of interest costs into the carrying value of its venture whose projects were currently under development for the three and six months ended June 30, 2018.

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 $11,223 and $8,145 from these projects for the six months ended June 30, 2019 and 2018, respectively.

Combined Financial Statements for Unconsolidated Subsidiaries:

The following summarized financial data for certain unconsolidated subsidiaries that meet certain thresholds pursuant to SEC Regulation S-X Rule 210.10-01(b) includes information for the 125 Greenwich Street investment. New Valley has elected a one-month lag reporting period for the investment.

Condominium and Mixed Use Development:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Income Statement
Revenue	$	2		$	12		$	3		$	21
Other expenses	2,013			143,723			2,755			144,478
Loss from continuing operations	$	(2,011	)	$	(143,711	)	$	(2,752	)	$	(144,457	)

Investments in Real Estate, net:

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



	June 30, 2019		December 31, 2018
Escena, net	$	10,009	$	10,170
Sagaponack	17,203		16,050
Investments in real estate, net	$	27,212	$	26,220

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



	June 30, 2019			December 31, 2018
Land and land improvements	$	8,910		$	8,910
Building and building improvements	1,900			1,900
Other	1,608			2,162
	12,418			12,972
Less accumulated depreciation	(2,409		)	(2,802		)
	$	10,009		$	10,170

New Valley recorded operating losses of $354 and $290 for the three months ended June 30, 2019 and 2018, respectively, from Escena. New Valley recorded operating income of $332 and $510 for the six months ended June 30, 2019 and 2018, 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 June 30, 2019, the assets of Sagaponack consisted of land and land improvements of $17,203.

Notes Payable, Long-Term Debt and Other Obligations

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Notes Payable, Long-Term Debt and Other Obligations

NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS

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



	June 30, 2019			December 31, 2018
Vector:
6.125% Senior Secured Notes due 2025	$	850,000		$	850,000
10.5% Senior Notes due 2026	325,000			325,000
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $0 and $3,359*	—			226,641
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $18,852 and $29,465*	213,148			202,535
Liggett:
Revolving credit facility	31,026			28,381
Term loan under credit facility	2,262			2,409
Equipment loans	545			1,039
Other	30,264			30,440
Notes payable, long-term debt and other obligations	1,452,245			1,666,445
Less:
Debt issuance costs	(21,435		)	(23,614		)
Total notes payable, long-term debt and other obligations	1,430,810			1,642,831
Less:
Current maturities	(250,659		)	(256,134		)
Amount due after one year	$	1,180,151		$	1,386,697

______________________

* The fair value of the derivatives embedded within the 7.5% Variable Interest Senior Convertible Notes ($0 at June 30, 2019 and $6,635 at December 31, 2018, respectively) and the 5.5% Variable Interest Senior Convertible Debentures ($17,287 at June 30, 2019 and $24,789 at December 31, 2018, respectively), is separately classified as a derivative liability in the condensed consolidated balance sheets.

6.125% Senior Secured Notes due 2025 — Vector:

As of June 30, 2019, the Company was in compliance with all debt covenants related to its 6.125% Senior Secured Notes due 2025.

10.5% Senior Notes due 2026 — Vector:

As of June 30, 2019, the Company was in compliance with all debt covenants related to its 10.5% Senior Notes due 2026.

7.5% Variable Interest Senior Convertible Notes due 2019 — Vector:

In January 2019, the Company paid $230,000 of principal and $8,102 of accrued interest as full payment of its 7.5% Variable Interest Senior Convertible Notes that matured on January 15, 2019.

5.5% Variable Interest Senior Convertible Debentures due 2020 — Vector:

As of June 30, 2019, the Company was in compliance with all debt covenants related to its 5.5% Variable Interest Senior Convertible Debentures due 2020.

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

As of June 30, 2019, a total of $33,288 was outstanding under the revolving and term loan portions of the credit facility. The total outstanding balance under the revolving and term loan portions of the credit facility was classified as current debt as of June 30, 2019. Availability, as determined under the facility, was approximately $21,800 based on eligible collateral at June 30, 2019. As of June 30, 2019, the Company’s applicable subsidiaries were in compliance with all debt covenants under this revolving and term loan facility.

Non-Cash Interest Expense — Vector:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Amortization of debt discount, net	$	5,447	$	20,386	$	13,972	$	38,579
Amortization of debt issuance costs	1,053		2,914		2,238		5,625
	$	6,500	$	23,300	$	16,210	$	44,204

Fair Value of Notes Payable and Long-Term Debt:



	June 30, 2019					December 31, 2018
	Carrying			Fair		Carrying			Fair
	Value			Value		Value			Value
Senior Notes	$	1,175,000		$	1,094,888	$	1,175,000		$	1,034,500
Variable Interest Senior Convertible Debt	213,148			239,090		429,176			468,704
Liggett and other	64,097			64,105		62,269			62,255
Notes payable and long-term debt	$	1,452,245	(1)	$	1,398,083	$	1,666,445	(1)	$	1,565,459

______________________

⁽¹⁾The carrying value does not include the carrying value of the embedded derivative. See Note 12.

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 12 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 June 30, 2019 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

6 Months Ended

Jun. 30, 2019

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 six months ended June 30, 2019 and 2018, Liggett incurred tobacco product liability legal expenses and costs totaling $3,737 and $3,584, 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. As of June 30, 2019, to obtain a stay of the judgment pending the appeal of the Santoro case, Liggett had secured $535 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 discussed in this Note 9: (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.

Although Liggett has generally been successful in managing the litigation filed against it, 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. 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. 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.

Individual Actions

As of June 30, 2019, there were 36 Individual Actions pending against Liggett, 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
Florida		24
Illinois		5
New York		2
Louisiana		2
West Virginia		2
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

In May 1994, the Engle case was filed as a class action 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.” A trial was held and the jury returned a verdict adverse to the defendants (approximately $145,000,000 in punitive damages, including $790,000 against Liggett). Following an appeal to the Third District Court of Appeal, the Florida Supreme Court in July 2006 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 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.

Cautionary Statement About Engle Progeny Cases. Since 2009, judgments have been entered against Liggett and other cigarette manufacturers in 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 June 30, 2019, 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 and nine in favor of Liggett. In five of the cases, punitive damages were awarded against Liggett. Several of the adverse verdicts were overturned on appeal and new trials were ordered. 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 9, 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, 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 the amount of their demand for damages. 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.

Engle Progeny Settlements.

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 $61,600 paid in an initial lump sum and the balance of $48,000 to be paid in installments over 14 years starting in February 2015. In exchange, the claims of these plaintiffs were dismissed with prejudice against the Company and Liggett. The Company’s future payments will be approximately $3,400 per annum through 2028, with a cost of living increase beginning in 2021.

In December 2016, the Company and Liggett entered into an agreement with 124 Engle progeny plaintiffs and their counsel. Pursuant to the terms of this settlement, Liggett agreed to pay $17,650, $14,000 of which was paid in December 2016 with the balance paid in December 2017. As a result of this settlement, the Company recorded a charge of $17,650 in the fourth quarter of 2016.

In June 2017, Liggett entered into an agreement to settle nine cases (eight Engle progeny cases and one Individual Action) for $1,400 and in September 2017 Liggett entered into an agreement to settle 20 Engle progeny cases for $4,100. As of June 30, 2019, Liggett (and in certain cases the Company) had, on an individual basis, settled an additional 187 Engle progeny cases for approximately $7,700 in the aggregate. Two of these settlements occurred in the second quarter of 2019.

Notwithstanding the comprehensive nature of the Engle Progeny Settlements, 62 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 effect on the Company’s consolidated financial position, results of operations and cash flows.

Judgments Paid in Engle Progeny Cases.

As of June 30, 2019, Liggett had paid in the aggregate $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. An adverse verdict against Liggett for $160 in Santoro is currently on appeal.

Maryland Cases

Liggett was a defendant in 16 multi-defendant personal injury cases in Maryland alleging claims arising from asbestos and tobacco exposure (“synergy cases”). In July 2016, the Court of Appeals (Maryland’s highest court) 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. In June 2017, the trial court issued an order dismissing all synergy cases against the tobacco defendants, including Liggett, without prejudice. Plaintiffs may seek appellate review or file new cases against the tobacco companies.

Liggett Only Cases

There is currently one case pending where Liggett is the sole defendant: Cowart, a Florida Individual Action where there has been no recent activity. It is possible that cases where Liggett is the only defendant could increase as a result of the remaining Engle progeny cases and newly filed Individual Actions.

Class Actions

As of June 30, 2019, three actions were pending for which either a class had been certified or plaintiffs were seeking class certification where Liggett is a named defendant, although the West Virginia case, described below, has been settled, pending final documentation. Other cigarette manufacturers are also named in the two remaining cases.

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 stay order entered on March 16, 2016 stays the case pending 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 claims arising from their exposure to cigarette smoke and asbestos fibers. The operative complaint seeks to recover unspecified compensatory and punitive damages on behalf of the putative class. The case is stayed as a result of 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 that trial. In May 2013, the jury rejected all but one of the plaintiffs’ claims against the non-Liggett defendants, 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 court entered judgment in October 2013, dismissing all claims against the non-Liggett defendants except the ventilated filter claim on behalf of 30 plaintiffs. Subsequently, these claims were settled by the non-Liggett defendants.

In May 2016, the trial court ruled that the case could proceed against Liggett, notwithstanding the outcome of the first phase of the trial against the non-Liggett defendants. In June 2019, Liggett reached a tentative settlement of the litigation. As a result, all further proceedings in the case have been stayed. Liggett accrued for this matter in the second quarter of 2019.

Health Care Cost Recovery Actions

As of June 30, 2019, 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 from Liggett and other cigarette manufacturers based on various theories of recovery as a result of alleged sales of tobacco products to minors. The case is dormant.

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, among other things, an unspecified amount of health care costs paid and to be paid by the federal government for smoking-related illnesses allegedly caused by the fraudulent and tortious conduct of defendants. In August 2006, the trial court entered a Final Judgment against each of the cigarette manufacturing defendants, except Liggett. The judgment was affirmed on appeal. As a result, the cigarette manufacturing defendants, other than Liggett, are now subject to the trial court’s Final Judgment which ordered, among other things, 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.

Upcoming Trials

As of June 30, 2019, there was one Individual Action and two Engle Progeny cases scheduled for trial through June 30, 2020, where Liggett (and/or the Company) is a named defendant. Trial dates are subject to change and additional cases could be set for trial during this time.

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 “PMs”) 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 PMs. 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 PM 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 PMs from licensing third parties to advertise tobacco brand names in any manner prohibited under the MSA; and prohibits PMs 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 PMs 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 PMs. 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, PMs 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 PM and are not the responsibility of any parent or affiliate of a PM.

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 4.0% of the total cigarettes sold in the United States in 2018. 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 28, 2018, Liggett and Vector Tobacco pre-paid $132,500 of their approximate $166,000 2018 MSA obligation, the balance of which was paid in April 2019, subject to 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 - 2018. The NPM Adjustment is a potential adjustment to annual MSA payments, available when PMs suffer a market share loss to NPMs for a particular year and an economic consulting firm selected pursuant to the MSA determines (or the parties agree) 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 - 2018, 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.

In June 2010, after the PMs prevailed in 48 of 49 motions to compel arbitration, the parties commenced the arbitration for the 2003 NPM Adjustment. That arbitration concluded in September 2013. It was followed by various challenges filed in state courts by states that did not prevail in the arbitration. Those challenges resulted in reductions, but not elimination of, the amounts awarded. The arbitration for the 2004 NPM Adjustment started in 2016, and hearings in that arbitration are underway. A separate proceeding in state court is underway for one state that appealed an order compelling arbitration (New Mexico).

The PMs have now settled most of the disputed NPM Adjustment years with 37 states representing approximately 75% of the MSA share. In January 2019, Montana sent a demand letter to the PMs seeking the return of amounts withheld or paid into the disputed payments escrow account (plus interest) for the NPM Adjustment years 2005 - 2016. Any amounts purportedly due from Liggett to Montana are immaterial. The 2004 arbitration and separate court proceedings continue for states with which the PMs have not settled.

As a result of the settlements and arbitration award described above, Liggett and Vector Tobacco reduced cost of sales in the aggregate by $32,840 for years 2013 - 2018. Liggett and Vector Tobacco may be entitled to further adjustments. As of June 30, 2019, Liggett and Vector Tobacco had accrued approximately $13,400 related to the disputed amounts withheld from the non-settling states for 2004 - 2010, which may be subject to payment, with interest, if Liggett and Vector Tobacco lose the disputes for those years. As of June 30, 2019, there remains approximately $36,300 in the disputed payments account relating to Liggett and Vector Tobacco’s 2011 - 2018 NPM Adjustment disputes with the non-settling states. If Liggett and Vector Tobacco lose the disputes for all or any of those years, pursuant to the MSA, no interest would be due on the amounts paid into the disputed payment account.

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.

In January 2016, the Attorney General for Mississippi filed a motion in Chancery Court in Jackson County, Mississippi to enforce the March 1996 settlement agreement alleging that Liggett owes Mississippi at least $27,000 in compensatory damages (including interest) as well as punitive damages and attorneys’ fees. In April 2017, the Chancery 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. In May 2017, Liggett filed a Petition for Interlocutory Appeal to the Mississippi Supreme Court, which was denied. Liggett filed a demand for arbitration regarding two specific issues and moved in Chancery Court to compel arbitration and stay the proceedings pending before the Special Master. In June 2018, the Chancery Court granted Liggett’s motion to compel arbitration and stayed the proceedings before the Special Master pending completion of the arbitration. On March 21, 2019, the arbitration panel issued its decision on the two specific issues before it: (i) the panel ruled in favor of Liggett, finding that the $294,000 of proceeds from Eve Holdings’ 1999 brand sale should not be included in Liggett’s pre-tax income, which would reduce the amount of compensatory damages, if any, that would be due to Mississippi; and (ii) ruled in favor of Mississippi on the remaining issue, finding that compensatory damages to Mississippi, if any, would be based on 0.5% of Liggett’s annual pre-tax income for the term of the settlement agreement. In May 2019, Mississippi withdrew its claim for punitive damages and attorneys’ fees. The matter has now returned to the Special Master and an evidentiary hearing is set for September 16, 2019. Liggett continues to believe that the April 2017 Chancery Court order is in error because the most favored nations provision in the settlement agreement eliminated all of Liggett’s payment obligations to Mississippi, and will evaluate its appellate options at the conclusion of the case.

Liggett may be required to make additional payments to Mississippi and Texas which could have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows.

Cautionary Statement

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

Management cannot predict the cash requirements related to any future defense costs, settlements or judgments, including cash required to bond any appeals, and there is a risk that those requirements will not be able to be met. An unfavorable outcome of a pending smoking-related case could encourage the commencement of additional litigation. Except as discussed in this Note 9, 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 six months ended June 30, 2019 was 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, 2019	$	36,561		$	310		$	36,871		$	16,383	$	21,794		$	38,177
Expenses	80,128			655			80,783			—		—			—
Change in MSA obligations capitalized as inventory	1,813			—			1,813			—		—			—
Payments	(31,959		)	(355		)	(32,314		)	—		—			—
Reclassification to/(from) non-current liabilities	(892		)	3,338			2,446			892		(3,338		)	(2,446		)
Interest on withholding	—			95			95			—		1,076			1,076
Balance as of June 30, 2019	$	85,651		$	4,043		$	89,694		$	17,275	$	19,532		$	36,807

The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2018 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, 2018	$	12,385		$	260		$	12,645		$	21,479		$	19,840		$	41,319
Expenses	79,739			525			80,264			—			—			—
NPM Settlement adjustment	(595		)	—			(595		)	(5,703		)	—			(5,703		)
Change in MSA obligations capitalized as inventory	(275		)	—			(275		)	—			—			—
Payments	(9,463		)	(250		)	(9,713		)	—			—			—
Reclassification to/(from) non-current liabilities	(647		)	218			(429		)	647			(218		)	429
Interest on withholding	—			19			19			—			1,048			1,048
Balance as of June 30, 2018	$	81,144		$	772		$	81,916		$	16,423		$	20,670		$	37,093

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 effect on the capital expenditures, results of operations or competitive position of Liggett or Vector Tobacco.

Liggett and the Company have received three separate demands for indemnification from Altria Client Services, on behalf of Philip Morris, relating to lawsuits alleging smokers’ use of L&M cigarettes. The indemnification demands are purportedly issued in connection with Eve Holdings’ 1999 sale of certain brands to Philip Morris.

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 June 30, 2019.

In addition to the foregoing, Douglas Elliman and certain of 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 materially affect the Company’s consolidated financial position, results of operations or cash flows.

Employee Benefit Plans

6 Months Ended

Jun. 30, 2019

Retirement Benefits [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						Pension Benefits						Other Postretirement Benefits						Other Postretirement Benefits
	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
	2019			2018			2019			2018			2019			2018			2019			2018
Service cost — benefits earned during the period	$	134		$	147		$	267		$	294		$	1		$	—		$	1		$	1
Interest cost on projected benefit obligation	1,215			1,124			2,430			2,246			87			82			173			164
Expected return on assets	(1,219		)	(1,393		)	(2,437		)	(2,786		)	—			—			—			—
Amortization of prior service cost	—			—			—			—			1			—			2			—
Amortization of net loss (gain)	501			451			1,002			903			(10		)	(10		)	(54		)	(20		)
Net expense	$	631		$	329		$	1,262		$	657		$	79		$	72		$	122		$	145

The service cost component of net periodic benefit expense (income) is recorded in Operating, selling, administrative and general expenses in the condensed consolidated statements of income while the other components are recorded in Other, net.

Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company’s effective income tax rate is based on expected income, statutory rates, valuation allowances against deferred tax assets, and any tax planning opportunities available to the Company. For interim financial reporting, the Company estimates the annual effective income tax rate based on full year projections and applies the annual effective income tax rate against year-to-date pretax income to record income tax expense, adjusted for discrete items, if any. The Company refines annual estimates as new information becomes available. The Company’s tax rate does not bear a relationship to statutory tax rates due to permanent differences, a valuation allowance being established for interest expense that is not deductible, and state taxes.

The Company’s income tax expense consisted of the following:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Income before provision for income taxes	$	56,766		$	31,756		$	78,548		$	37,368
Income tax expense using estimated annual effective income tax rate	17,566			14,209			24,319			16,720
Changes in effective tax rates	(110		)	455			—			—
Change in estimate for the impact of Tax Cuts and Jobs Act of 2017	—			(1,809		)	—			(1,809		)
Impact of discrete items, net	3			(95		)	(111		)	(203		)
Income tax expense	$	17,459		$	12,760		$	24,208		$	14,708

The discrete items for the three and six months ended June 30, 2019 and 2018 are related to income tax deductions for stock-based compensation.

Investments and Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Investments and Fair Value Measurements

INVESTMENTS AND FAIR VALUE MEASUREMENTS

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



	Fair Value Measurements as of June 30, 2019
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Assets:
Money market funds ⁽¹⁾	$	196,671	$	196,671	$	—	$	—

Commercial paper⁽¹⁾	43,602		—		43,602		—

Certificates of deposit ⁽²⁾	2,179		—		2,179		—

Money market funds securing legal bonds ⁽²⁾	535		535		—		—

Investment securities at fair value
Equity securities at fair value
Marketable equity securities	24,257		24,257		—		—
Mutual funds invested in fixed-income securities	22,012		22,012		—		—
Total equity securities at fair value	46,269		46,269		—		—
Debt securities available for sale
U.S. government securities	19,535		—		19,535		—
Corporate securities	47,427		—		47,427		—
U.S. government and federal agency	8,623		—		8,623		—
Commercial mortgage-backed securities	394		—		394		—
Commercial paper	9,026		—		9,026		—
Index-linked U.S. bonds	2,664		—		2,664		—
Foreign fixed-income securities	1,162		—		1,162		—
Total debt securities available for sale	88,831		—		88,831		—

Total investment securities at fair value	135,100		46,269		88,831		—

Long-term investments
Equity securities at fair value that qualify for the NAV practical expedient ⁽³⁾	53,175		—		—		—
Total	$	431,262	$	243,475	$	134,612	$	—

Liabilities:
Fair value of contingent liability	$	6,195	$	—	$	—	$	6,195
Fair value of derivatives embedded within convertible debt	17,287		—		—		17,287
Total	$	23,482	$	—	$	—	$	23,482


(1)	Amounts included in Cash and cash equivalents on the condensed consolidated balance sheet, except for $5,086 that is included in Other current assets and $3,910 that is included in Other assets.


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


(3)	In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy.



	Fair Value Measurements as of December 31, 2018
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Assets:
Money market funds ⁽¹⁾	$	448,560	$	448,560	$	—	$	—

Commercial paper⁽¹⁾	46,062		—		46,062		—

Certificates of deposit ⁽²⁾	2,251		—		2,251		—

Money market funds securing legal bonds ⁽²⁾	535		535		—		—

Investment securities at fair value
Equity securities at fair value
Marketable equity securities	26,010		26,010		—		—
Mutual funds invested in fixed-income securities	21,192		21,192		—		—
Total equity securities at fair value	47,202		47,202		—		—
Debt securities available for sale
U.S. government securities	28,514		—		28,514		—
Corporate securities	41,733		—		41,733		—
U.S. government and federal agency	4,369		—		4,369		—
Commercial mortgage-backed securities	401		—		401		—
Commercial paper	5,870		—		5,870		—
Index-linked U.S. bonds	2,330		—		2,330		—
Foreign fixed-income securities	1,150		—		1,150		—
Total debt securities available for sale	84,367		—		84,367		—

Total investment securities at fair value	131,569		47,202		84,367		—

Long-term investments
Equity securities at fair value that qualify for the NAV practical expedient ⁽³⁾	54,628		—		—		—
Total	$	683,605	$	496,297	$	132,680	$	—

Liabilities:
Fair value of contingent liability	$	6,304	$	—	$	—	$	6,304
Fair value of derivatives embedded within convertible debt	31,424		—		—		31,424
Total	$	37,728	$	—	$	—	$	37,728


(1)	Amounts included in Cash and cash equivalents on the condensed consolidated balance sheet, except for $2,570 that is included in current restricted assets and $3,910 that is included in non-current restricted assets.


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


(3)	In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy.

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 at fair value included in Level 1 is based on quoted market prices from various stock exchanges. The Level 2 investment securities at fair value 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 long-term investments are based on NAV per share provided by the partnerships based on the indicated market value of the underlying assets or investment portfolio. In accordance with Subtopic 820-10, these investments are not classified under the fair value hierarchy disclosed above because they are measured at fair value using the NAV practical expedient.

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 5.5% 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 condensed consolidated statements of operations.

The fair value of the Level 3 contingent liability was derived using a Monte Carlo valuation model. As part of the acquisition of the 29.41% non-controlling interest in Douglas Elliman, New Valley entered into a four-year payout agreement that requires it to pay the sellers a portion of the fair value in excess of the purchase price of Douglas Elliman should a sale of a controlling interest in Douglas Elliman occur.

The contingent liability is recorded within “Other liabilities” in the condensed consolidated balance sheet, and any change in fair value will be recorded in “Other, net” within the condensed consolidated statements of operations. The value of the contingent liability is calculated using the outstanding payable owed to the sellers and the estimated fair value of Douglas Elliman. The liability is contingent upon the sale of a controlling interest in Douglas Elliman by the Company prior to October 1, 2022.

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at June 30, 2019:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	June 30, 2019		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	17,287	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	9.75
				Convertible trading price (as a percentage of par value)	103.06		%
				Volatility	33.11		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	5.25% - 7.25% (6.25%)

Fair value of contingent liability	$	6,195	Monte Carlo simulation model	Estimated fair value of the Douglas Elliman reporting unit	$	320,000
				Risk-free rate for a 3.5 year term	1.71		%
				Leverage-adjusted equity volatility of peer firms	26.24		%

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2018:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2018		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	31,424	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	9.73
				Convertible trading price (as a percentage of par value)	100.31		%
				Volatility	20.39		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	8.0% - 9.0% (8.5%)

Fair value of contingent liability	$	6,304	Monte Carlo simulation model	Estimated fair value of the Douglas Elliman reporting unit	$	320,000
				Risk-free rate for a 4-year term	2.45		%
				Leverage-adjusted equity volatility of peer firms	30.22		%

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record assets and liabilities at fair value on a nonrecurring basis. Generally, assets and liabilities are recorded at fair value on a nonrecurring basis as a result of impairment charges. The Company had no nonrecurring nonfinancial assets subject to fair value measurements as of June 30, 2019 and 2018, respectively.

Condensed Financial Information Disclosure [Abstract]

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.

+ References + Details

Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company’s business segments for the three and six months ended June 30, 2019 and 2018 were Tobacco and Real Estate. The Tobacco segment consisted of the manufacture and sale of conventional cigarettes. The Real Estate segment included 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 and six months ended June 30, 2019 and 2018 were as follows:



				Real				Corporate
	Tobacco			Estate				and Other			Total
Three months ended June 30, 2019
Revenues	$	294,501		$	243,931			$	—		$	538,432
Operating income (loss)	68,651		(1)	14,453				(6,860		)	76,244
Equity in earnings from real estate ventures	—			6,391				—			6,391
Depreciation and amortization	1,950			2,024				250			4,224

Three months ended June 30, 2018
Revenues	$	274,833		$	206,655			$	—		$	481,488
Operating income (loss)	62,515		(2)	5,867				(6,521		)	61,861
Equity in losses from real estate ventures	—			(2,112		)		—			(2,112		)
Depreciation and amortization	2,075			2,418				256			4,749

Six months ended June 30, 2019
Revenues	$	551,257		$	408,099			$	—		$	959,356
Operating income (loss)	128,795		(3)	4,044				(14,005		)	118,834
Equity in earnings from real estate ventures	—			3,952				—			3,952
Depreciation and amortization	3,907			4,525				500			8,932
Capital expenditures	2,753			3,567				—			6,320

Six months ended June 30, 2018
Revenues	$	541,949		$	368,505			$	—		$	910,454
Operating income (loss)	125,926		(4)	(2,893		)	(5)	(13,088		)	109,945
Equity in losses from real estate ventures	—			(8,672		)		—			(8,672		)
Depreciation and amortization	4,112			4,707				517			9,336
Capital expenditures	2,072			6,529				15			8,616


⁽¹⁾	Operating income includes $655 of litigation settlement and judgment expense.


⁽²⁾	Operating income includes $2,808 of income from a settlement of a long-standing dispute related to the Master Settlement Agreement, and $525 of litigation settlement and judgment expense.

⁽³⁾Operating income includes $655 of litigation settlement and judgment expense.


⁽⁴⁾	Operating income includes $6,298 of income from a settlement of a long-standing dispute related to the Master Settlement Agreement, and $525 of litigation settlement and judgment expense.

⁽⁵⁾

Operating income includes $2,469 of litigation settlement and judgment income.

Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2019

Condensed Consolidating Financial Information

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The condensed consolidating financial information is based upon the following subsidiaries being subsidiary guarantors of unsecured debt securities that may be issued by the Company: VGR Holding LLC; Liggett Group LLC; Liggett Vector Brands LLC; Vector Research LLC; Vector Tobacco Inc.; Liggett & Myers Holdings Inc.; 100 Maple LLC; V.T. Aviation LLC; VGR Aviation LLC; Eve Holdings LLC; Zoom E-Cigs LLC; and DER Holdings LLC. 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 including 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 be guaranteed by any of the Company’s other subsidiaries, including those subsidiaries other than DER Holdings LLC that are engaged in the real estate businesses conducted through its subsidiary, New Valley.

Presented herein are Condensed Consolidating Balance Sheets as of June 30, 2019 and 2018, the related Condensed Consolidating Statements of Operations for the three and six months ended June 30, 2019 and 2018, and the related Condensed Consolidating Statements of Cash Flows for the three and six months ended June 30, 2019 and 2018 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



				June 30, 2019
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	174,786		$	69,154	$	79,921	$	—		$	323,861
Investment securities at fair value	135,100			—		—		—			135,100
Accounts receivable - trade, net	—			13,616		30,731		—			44,347
Intercompany receivables	41,312			—		—		(41,312		)	—
Inventories	—			96,934		—		—			96,934
Income taxes receivable, net	—			—		387		(387		)	—
Other current assets	4,788			6,532		26,931		—			38,251
Total current assets	355,986			186,236		137,970		(41,699		)	638,493
Property, plant and equipment, net	404			36,799		47,059		—			84,262
Investments in real estate, net	—			—		27,212		—			27,212
Long-term investments (of which $53,175 were carried at fair value)	63,814			—		—		—			63,814
Investments in real estate ventures	—			—		144,766		—			144,766
Operating lease right of use assets	7,623			5,215		122,296		—			135,134
Investments in consolidated subsidiaries	429,782			245,329		—		(675,111		)	—
Goodwill and other intangible assets, net	—			107,511		158,571		—			266,082
Other assets	15,016			38,966		41,415		—			95,397
Total assets	$	872,625		$	620,056	$	679,289	$	(716,810	)	$	1,455,160
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	211,712		$	38,690	$	5,257	$	(5,000	)	$	250,659
Current portion of fair value of derivatives embedded within convertible debt	17,287			—		—		—			17,287
Intercompany payables	—			197		41,115		(41,312		)	—
Income taxes payable, net	6,008			2,724		—		(387		)	8,345
Current payments due under the Master Settlement Agreement	—			85,651		—		—			85,651
Current operating lease liability	1,020			1,918		17,401		—			20,339
Other current liabilities	46,463			64,050		65,721		(448		)	175,786
Total current liabilities	282,490			193,230		129,494		(47,147		)	558,067
Notes payable, long-term debt and other obligations, less current portion	1,155,001			25,143		25,007		(25,000		)	1,180,151
Non-current employee benefits	46,621			15,480		—		—			62,101
Deferred income taxes, net	(12,241		)	20,507		33,199		—			41,465
Non-current operating lease liability	7,541			3,901		128,287		—			139,729
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement	397			36,806		43,140		—			80,343
Total liabilities	1,479,809			295,067		359,127		(72,147		)	2,061,856
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(607,184		)	324,989		319,674		(644,663		)	(607,184		)
Non-controlling interest	—			—		488		—			488
Total stockholders' (deficiency) equity	(607,184		)	324,989		320,162		(644,663		)	(606,696		)
Total liabilities and stockholders' deficiency	$	872,625		$	620,056	$	679,289	$	(716,810	)	$	1,455,160

CONDENSED CONSOLIDATING BALANCE SHEETS



				December 31, 2018
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	474,880		$	23,308	$	86,393	$	—		$	584,581
Investment securities at fair value	131,569			—		—		—			131,569
Accounts receivable - trade, net	—			15,440		18,806		—			34,246
Intercompany receivables	38,391			—		—		(38,391		)	—
Inventories	—			90,997		—		—			90,997
Income taxes receivable, net	—			—		1,268		(1,268		)	—
Other current assets	1,500			7,599		21,729		—			30,828
Total current assets	646,340			137,344		128,196		(39,659		)	872,221
Property, plant and equipment, net	506			38,562		47,668		—			86,736
Investments in real estate, net	—			—		26,220		—			26,220
Long-term investments (of which $54,628 were carried at fair value)	66,259			—		—		—			66,259
Investments in real estate ventures	—			—		141,105		—			141,105
Investments in consolidated subsidiaries	431,288			252,113		—		(683,401		)	—
Goodwill and other intangible assets, net	—			107,511		159,100		—			266,611
Other assets	14,616			38,154		37,582		—			90,352
Total assets	$	1,159,009		$	573,684	$	539,871	$	(723,060	)	$	1,549,504
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	226,343		$	29,480	$	311	$	—		$	256,134
Current portion of fair value of derivatives embedded within convertible debt	6,635			—		—		—			6,635
Current portion of employee benefits	—			—		—		—			—
Intercompany payables	—			479		37,912		(38,391		)	—
Income taxes payable, net	5,257			1,263		—		(1,268		)	5,252
Current payments due under the Master Settlement Agreement	—			36,561		—		—			36,561
Other current liabilities	55,915			73,279		51,144		—			180,338
Total current liabilities	294,150			141,062		89,367		(39,659		)	484,920
Notes payable, long-term debt and other obligations, less current portion	1,354,219			2,349		30,129		—			1,386,697
Fair value of derivatives embedded within convertible debt	24,789			—		—		—			24,789
Non-current employee benefits	45,615			15,673		—		—			61,288
Deferred income taxes, net	(13,084		)	17,732		32,763		—			37,411
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement	1,379			38,179		62,207		—			101,765
Total liabilities	1,707,068			214,995		214,466		(39,659		)	2,096,870
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(548,059		)	358,689		324,712		(683,401		)	(548,059		)
Non-controlling interest	—			—		693		—			693
Total stockholders' (deficiency) equity	(548,059		)	358,689		325,405		(683,401		)	(547,366		)
Total liabilities and stockholders' deficiency	$	1,159,009		$	573,684	$	539,871	$	(723,060	)	$	1,549,504

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Three Months Ended June 30, 2019
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	294,621		$	243,931		$	(120	)	$	538,432
Expenses:
Cost of sales	—			204,461			163,713			—			368,174
Operating, selling, administrative and general expenses	9,515			18,167			65,797			(120		)	93,359
Litigation settlement and judgment expense	—			655			—			—			655
Management fee expense	—			2,992			—			(2,992		)	—
Operating (loss) income	(9,515		)	68,346			14,421			2,992			76,244
Other income (expenses):
Interest expense	(31,706		)	(1,043		)	(228		)	224			(32,753		)
Change in fair value of derivatives embedded within convertible debt	3,788			—			—			—			3,788
Equity in earnings from real estate ventures	—			—			6,391			—			6,391
Equity in earnings in consolidated subsidiaries	66,163			15,138			—			(81,301		)	—
Management fee income	2,992			—			—			(2,992		)	—
Other, net	2,017			447			632			—			3,096
Income before provision for income taxes	33,739			82,888			21,216			(81,077		)	56,766
Income tax benefit (expense)	5,568			(17,118		)	(5,909		)	—			(17,459		)
Net income	39,307			65,770			15,307			(81,077		)	39,307
Net loss attributed to non-controlling interest	—			—			—			—			—
Net income attributed to Vector Group Ltd.	$	39,307		$	65,770		$	15,307		$	(81,077	)	$	39,307
Comprehensive loss attributed to non-controlling interest	$	—		$	—		$	—		$	—		$	—
Comprehensive income attributed to Vector Group Ltd.	$	39,912		$	66,004		$	15,307		$	(81,311	)	$	39,912

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Three Months Ended June 30, 2018
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	274,953		$	206,655		$	(120	)	$	481,488
Expenses:
Cost of sales	—			192,761			140,005			—			332,766
Operating, selling, administrative and general expenses	8,320			16,570			61,566			(120		)	86,336
Litigation settlement and judgment expense	—			525			—			—			525
Management fee expense	—			2,877			—			(2,877		)	—
Operating (loss) income	(8,320		)	62,220			5,084			2,877			61,861
Other income (expenses):
Interest expense	(47,738		)	(676		)	(7		)	—			(48,421		)
Change in fair value of derivatives embedded within convertible debt	10,717			—			—			—			10,717
Equity in losses from real estate ventures	—			—			(2,112		)	—			(2,112		)
Equity in earnings in consolidated subsidiaries	52,092			—			—			(52,092		)	—
Management fee income	2,877			—			—			(2,877		)	—
Other, net	6,065			3,310			336			—			9,711
Income before provision for income taxes	15,693			64,854			3,301			(52,092		)	31,756
Income tax benefit (expense)	2,125			(15,688		)	803			—			(12,760		)
Net income	17,818			49,166			4,104			(52,092		)	18,996
Net income attributed to non-controlling interest	—			—			(1,178		)	—			(1,178		)
Net income attributed to Vector Group Ltd.	$	17,818		$	49,166		$	2,926		$	(52,092	)	$	17,818
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(1,178	)	$	—		$	(1,178	)
Comprehensive income attributed to Vector Group Ltd.	$	18,137		$	49,312		$	2,926		$	(52,238	)	$	18,137

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Six Months Ended June 30, 2019
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	551,496		$	408,099		$	(239	)	$	959,356
Expenses:
Cost of sales	—			381,764			272,430			—			654,194
Operating, selling, administrative and general expenses	19,346			34,858			131,708			(239		)	185,673
Litigation settlement and judgment expense	—			655			—			—			655
Management fee expense	—			5,985			—			(5,985		)	—
Operating (loss) income	(19,346		)	128,234			3,961			5,985			118,834
Other income (expenses):
Interest expense	(68,254		)	(2,010		)	(457		)	448			(70,273		)
Change in fair value of derivatives embedded within convertible debt	14,137			—			—			—			14,137
Equity in earnings from real estate ventures	—			—			3,952			—			3,952
Equity in earnings in consolidated subsidiaries	101,428			4,724			—			(106,152		)	—
Management fee income	5,985			—			—			(5,985		)	—
Other, net	9,962			600			1,336			—			11,898
Income before provision for income taxes	43,912			131,548			8,792			(105,704		)	78,548
Income tax benefit (expense)	10,348			(32,066		)	(2,490		)	—			(24,208		)
Net income	54,260			99,482			6,302			(105,704		)	54,340
Net income attributed to non-controlling interest	—			—			(80		)	—			(80		)
Net income attributed to Vector Group Ltd.	$	54,260		$	99,482		$	6,222		$	(105,704	)	$	54,260
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(80	)	$	—		$	(80	)
Comprehensive income attributed to Vector Group Ltd.	$	55,446		$	99,951		$	6,222		$	(106,173	)	$	55,446

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Six Months Ended June 30, 2018
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	542,188		$	368,505		$	(239	)	$	910,454
Expenses:
Cost of sales	—			377,723			249,318			—			627,041
Operating, selling, administrative and general expenses	17,416			32,845			125,390			(239		)	175,412
Litigation settlement and judgment expense (income)	—			525			(2,469		)	—			(1,944		)
Management fee expense	—			5,754			—			(5,754		)	—
Operating (loss) income	(17,416		)	125,341			(3,734		)	5,754			109,945
Other income (expenses):
Interest expense	(92,969		)	(1,343		)	(56		)	—			(94,368		)
Change in fair value of derivatives embedded within convertible debt	21,284			—			—			—			21,284
Equity in losses from real estate ventures	—			—			(8,672		)	—			(8,672		)
Equity in earnings in consolidated subsidiaries	86,513						—			(86,513		)	—
Management fee income	5,754			—			—			(5,754		)	—
Other, net	8,820			(319		)	678			—			9,179
Income (loss) before provision for income taxes	11,986			123,679			(11,784		)	(86,513		)	37,368
Income tax benefit (expense)	13,043			(31,548		)	3,797			—			(14,708		)
Net income (loss)	25,029			92,131			(7,987		)	(86,513		)	22,660
Net loss attributed to non-controlling interest	—			—			2,369			—			2,369
Net income (loss) attributed to Vector Group Ltd.	$	25,029		$	92,131		$	(5,618	)	$	(86,513	)	$	25,029
Comprehensive loss attributed to non-controlling interest	$	—		$	—		$	2,369		$	—		$	2,369
Comprehensive income (loss) attributed to Vector Group Ltd.	$	25,598		$	92,415		$	(5,618	)	$	(86,797	)	$	25,598

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Six Months Ended June 30, 2019
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	78,661		$	148,639		$	10,158		$	(139,356	)	$	98,102
Cash flows from investing activities:
Sale of investment securities	12,942			—			—			—			12,942
Maturities of investment securities	28,610			—			—			—			28,610
Purchase of investment securities	(44,222		)	—			—			—			(44,222		)
Investments in real estate ventures	—			—			(21,908		)	—			(21,908		)
Purchase of subsidiaries	—			—			(668		)	—			(668		)
Distributions from investments in real estate ventures	—			—			23,200			—			23,200
Increase in cash surrender value of life insurance policies	(385		)	(404		)	—			—			(789		)
(Increase) decrease in restricted assets	(15		)	683			—			—			668
Investments in subsidiaries	(27,482		)	—			—			27,482			—
Proceeds from sale of fixed assets	—			8			—			—			8
Capital expenditures	—			(2,753		)	(3,567		)	—			(6,320		)
Pay downs of investment securities	545			—			—			—			545
Investments in real estate, net	—			—			(1,153		)	—			(1,153		)
Net cash used in investing activities	(30,007		)	(2,466		)	(4,096		)	27,482			(9,087		)
Cash flows from financing activities:
Deferred financing costs	—			(33		)	—			—			(33		)
Repayments of debt	(230,000		)	(621		)	(150		)	—			(230,771		)
Borrowings under revolver	—			172,224			—			—			172,224
Repayments on revolver	—			(169,727		)	—			—			(169,727		)
Capital contributions received	—			575			26,907			(27,482		)	—
Intercompany dividends paid	—			(102,739		)	(36,617		)	139,356			—
Dividends and distributions on common stock	(118,748		)	—			—			—			(118,748		)
Distributions to non-controlling interest	—			—			(285		)	—			(285		)
Net cash used in financing activities	(348,748		)	(100,321		)	(10,145		)	111,874			(347,340		)
Net (decrease) increase in cash, cash equivalents and restricted cash	(300,094		)	45,852			(4,083		)	—			(258,325		)
Cash, cash equivalents and restricted cash, beginning of period	474,880			23,849			93,000			—			591,729
Cash, cash equivalents and restricted cash, end of period	$	174,786		$	69,701		$	88,917		$	—		$	333,404

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Six Months Ended June 30, 2018
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	88,944		$	144,713		$	4,109		$	(115,340	)	$	122,426
Cash flows from investing activities:
Sale of investment securities	2,647			—			—			—			2,647
Maturities of investment securities	10,598			—			—			—			10,598
Purchase of investment securities	(12,402		)	—			—			—			(12,402		)
Investments in real estate ventures	—			—			(4,343		)	—			(4,343		)
Investments in real estate, net	—			—			(1,009		)	—			(1,009		)
Acquisition of a business	—			—			(403		)	—			(403		)
Distributions from investments in real estate ventures	—			—			27,134			—			27,134
Increase in cash surrender value of life insurance policies	(408		)	(401		)	—			—			(809		)
Decrease in restricted assets	22			240			—			—			262
Repayments of notes receivable	20,000			—			32			(20,000		)	32
Pay downs of investment securities	928			—			—			—			928
Investments in subsidiaries	(6,790		)	—			—			6,790			—
Capital expenditures	(15		)	(2,072		)	(6,529		)	—			(8,616		)
Net cash provided by (used in) investing activities	14,580			(2,233		)	14,882			(13,210		)	14,019
Cash flows from financing activities:
Repayments of debt	—			(20,840		)	(147		)	20,000			(987		)
Borrowings under revolver	—			134,310			—			—			134,310
Repayments on revolver	—			(137,877		)	—			—			(137,877		)
Capital contributions received	—			500			6,290			(6,790		)	—
Intercompany dividends paid	—			(83,219		)	(32,121		)	115,340			—
Dividends and distributions on common stock	(112,462		)	—			—			—			(112,462		)
Distributions to non-controlling interest	—			—			(359		)	—			(359		)
Net cash used in financing activities	(112,462		)	(107,126		)	(26,337		)	128,550			(117,375		)
Net (decrease) increase in cash, cash equivalents and restricted cash	(8,938		)	35,354			(7,346		)	—			19,070
Cash, cash equivalents and restricted cash, beginning of period	194,719			20,175			96,043			—			310,937
Cash, cash equivalents and restricted cash, end of period	$	185,781		$	55,529		$	88,697		$	—		$	330,007

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation:

Basis of Accounting

Distributions and Dividends on Common Stock

Distributions and Dividends on Common Stock:

Earnings Per Share (“EPS”)

Earnings Per Share (“EPS”):

Fair Value of Derivatives Embedded within Convertible Debt

Fair Value of Derivatives Embedded within Convertible Debt:

Investments in Real Estate Ventures

Investments in Real Estate Ventures:

Restricted Cash

New Accounting Pronouncements

New Accounting Pronouncements:

Accounting Standards Updates (“ASU”) adopted in 2019:

ASUs to be adopted in future periods:

Revenue Recognition Accounting Pronouncement Adoption


1.	The Company applied the optional exemption in paragraph 606-10-50-14 of Topic 606, and has not disclosed the amount of the transaction price allocated to the remaining performance obligations for the Real Estate property management business because the contracts to provide property management services are typically annual contracts.

Revenue Recognition

Revenue Recognition Policies

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Net income for purposes of determining basic and diluted EPS

Net income for purposes of determining basic EPS was as follows:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Net income attributed to Vector Group Ltd.	$	39,307		$	17,818		$	54,260		$	25,029
Income attributed to participating securities	(2,027		)	(1,692		)	(4,029		)	(3,464		)
Net income applicable to common shares attributed to Vector Group Ltd.	$	37,280		$	16,126		$	50,231		$	21,565

Net income for purposes of determining diluted EPS was as follows:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Net income attributed to Vector Group Ltd.	$	39,307		$	17,818		$	54,260		$	25,029
Income attributable to 7.5% Variable Interest Senior Convertible Notes	—			—			(1,246		)	—
Income attributed to participating securities	(2,027		)	(1,692		)	(4,029		)	(3,464		)
Net income applicable to common shares attributed to Vector Group Ltd.	$	37,280		$	16,126		$	48,985		$	21,565

Basic and diluted EPS calculation shares

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



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2019	2018	2019	2018
Weighted-average shares for basic EPS	139,532,405	139,301,817	139,514,592	139,295,176
Plus incremental shares related to convertible debt	—	—	1,380,717	—
Plus incremental shares related to stock options and non-vested restricted stock	11,507	335,827	13,564	336,287
Weighted-average shares for diluted EPS	139,543,912	139,637,644	140,908,873	139,631,463

Outstanding shares not included in the computation of diluted EPS



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Weighted-average shares of non-vested restricted stock	1,340,781		—		1,340,781		—
Weighted-average expense per share	$	18.82	$	—	$	18.82	$	—
Weighted-average number of shares issuable upon conversion of debt	10,901,963		28,819,626		10,901,963		28,819,626
Weighted-average conversion price	$	21.28	$	16.96	$	21.28	$	16.96

Schedule of other income (loss), net

Other, net consisted of:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Interest and dividend income	$	3,139		$	2,145		$	6,347		$	4,067
Equity in (losses) earnings from investments	(1,685		)	4,813			(323		)	5,975
Net gains (losses) recognized on investment securities	2,315			3,006			7,088			(333		)
Net periodic benefit cost other than the service costs	(575		)	(254		)	(1,116		)	(507		)
Other (expense) income	(98		)	1			(98		)	(23		)
Other, net	$	3,096		$	9,711		$	11,898		$	9,179

Schedule of other assets

Other Assets:

Other assets consisted of:



	June 30, 2019		December 31, 2018
Restricted assets	$	6,327	$	6,306
Prepaid pension costs	24,489		23,869
Other assets	64,581		60,177
Total other assets	$	95,397	$	90,352

Schedule of other current liabilities

Other current liabilities consisted of:



	June 30, 2019		December 31, 2018
Accounts payable	$	9,852	$	13,144
Accrued promotional expenses	26,586		37,940
Accrued excise and payroll taxes payable, net	16,044		14,612
Accrued interest	32,375		38,673
Commissions payable	26,698		12,975
Accrued salary and benefits	21,231		30,228
Contract liabilities	8,159		—
Allowance for sales returns	7,042		6,935
Other current liabilities	27,799		25,831
Total other current liabilities	$	175,786	$	180,338

Schedule of goodwill and other intangible assets, net

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



	June 30, 2019		December 31, 2018
Goodwill	$	78,008	$	77,568

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

Intangibles with a finite life, net	563		1,532

Total goodwill and other intangible assets, net	$	266,082	$	266,611

Schedule of components of cash, cash equivalents and restricted cash

The components of “Cash, cash equivalents and restricted cash” in the Statement of Cash Flows were as follows:



	June 30, 2019		December 31, 2018
Cash and cash equivalents	$	323,861	$	584,581
Restricted cash and cash equivalents included in other current assets	5,086		2,697
Restricted cash and cash equivalents included in other assets	4,457		4,451
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	333,404	$	591,729

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

In the following table, revenue is disaggregated by major product line for the Tobacco segment:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Tobacco Segment Revenues:
Core Discount Brands - EAGLE 20’s, PYRAMID, GRAND PRIX, LIGGETT SELECT, and EVE	$	267,277	$	248,370	$	500,383	$	489,901
Other Brands	27,224		26,463		50,874		52,048
Total tobacco revenues	$	294,501	$	274,833	$	551,257	$	541,949

In the following table, revenue is disaggregated by major services line and primary geographical market for the Real Estate segment:



	Three Months Ended June 30, 2019
	New York City		Northeast		Southeast		West		Total
Real Estate Segment Revenues:
Commission brokerage income	$	104,301	$	39,880	$	31,324	$	31,653	$	207,158
Development marketing	22,718		—		436		22		23,176
Property management revenue	10,048		170		—		—		10,218
Title fees	—		2,400		—		—		2,400
Total Douglas Elliman revenue	137,067		42,450		31,760		31,675		242,952
Other real estate revenues	—		—		—		979		979
Total real estate revenues	$	137,067	$	42,450	$	31,760	$	32,654	$	243,931



	Three Months Ended June 30, 2018
	New York City		Northeast		Southeast		West		Total
Real Estate Segment Revenues:
Commission brokerage income	$	76,175	$	43,228	$	31,909	$	28,099	$	179,411
Development marketing	10,559		129		4,788		49		15,525
Property management revenue	8,560		181		—		—		8,741
Title fees	—		1,922		—		—		1,922
Total Douglas Elliman revenue	95,294		45,460		36,697		28,148		205,599
Other real estate revenues	—		—		—		1,056		1,056
Total real estate revenues	$	95,294	$	45,460	$	36,697	$	29,204	$	206,655



	Six Months Ended June 30, 2019
	New York City		Northeast		Southeast		West		Total
Real Estate Segment Revenues:
Commission brokerage income	$	169,980	$	70,991	$	54,295	$	50,182	$	345,448
Development marketing	34,104		—		3,066		29		37,199
Property management revenue	18,215		354		—		—		18,569
Title fees	—		3,633		—		—		3,633
Total Douglas Elliman revenue	222,299		74,978		57,361		50,211		404,849
Other real estate revenues	—		—		—		3,250		3,250
Total real estate revenues	$	222,299	$	74,978	$	57,361	$	53,461	$	408,099



	Six Months Ended June 30, 2018
	New York City		Northeast		Southeast		West		Total
Real Estate Segment Revenues:
Commission brokerage income	$	136,583	$	75,906	$	56,307	$	49,511	$	318,307
Development marketing	21,169		252		5,081		243		26,745
Property management revenue	16,698		381		—		—		17,079
Title fees	—		2,911		—		—		2,911
Total Douglas Elliman revenue	174,450		79,450		61,388		49,754		365,042
Other real estate revenues	—		—		—		3,463		3,463
Total real estate revenues	$	174,450	$	79,450	$	61,388	$	53,217	$	368,505

Contract Balances

The following table provides information about contracts assets and contract liabilities from development marketing and commercial leasing contracts with customers:




	June 30, 2019		January 1, 2019
Receivables, which are included in accounts receivable - trade, net	$	2,321	$	2,050
Contract assets, net, which are included in other current assets	9,481		9,264
Payables, which are included in other current liabilities	1,373		1,082
Contract liabilities, which are included in other current liabilities	8,159		7,071
Contract assets, net, which are included in other assets	18,693		15,794
Contract liabilities, which are included in other liabilities	34,398		30,445

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Lease Expense and Supplemental Cash Flow Information

The components of lease expense were as follows:



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2019		2019
Operating lease cost	$	9,630	$	18,505
Short-term lease cost	279		513
Variable lease cost	898		1,690

Finance lease cost:
Amortization	63		119
Interest on lease liabilities	4		7
Total lease cost	$	10,874	$	20,834

Supplemental cash flow information related to leases was as follows:



	Six Months Ended
	June 30,
	2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	18,440
Operating cash flows from finance leases	7
Financing cash flows from finance leases	113

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	13,061
Finance leases	123

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases was as follows:



	June 30,
	2019
Operating leases:
Operating lease right-of-use assets	$	135,134

Current operating lease liability	$	20,339
Non-current operating lease liability	139,729
Total operating lease liabilities	$	160,068

Finance leases:
Investments in real estate, net	$	133		⁽¹⁾

Property, plant and equipment, at cost	$	309
Accumulated amortization	(166		)
Property and equipment, net	$	143

Current portion of notes payable and long-term debt	$	168
Notes payable, long-term debt and other obligations, less current portion	108
Total finance lease liabilities	$	276

Weighted average remaining lease term:
Operating leases	8.62
Finance leases	2.60

Weighted average discount rate:
Operating leases	11.05		%
Finance leases	8.46		%

⁽¹⁾

Included in Investments in real estate, net on the condensed consolidated balance sheet are financing lease equipment, at cost of $729 and accumulated amortization of $596 as of June 30, 2019.

Maturities of Operating Lease Liabilities

As of June 30, 2019, maturities of lease liabilities were as follows:



	Operating Leases			Finance Leases
Year Ending December 31:
Remainder of 2019	$	19,389		$	118
2020	33,597			86
2021	30,914			33
2022	28,012			31
2023	26,460			31
2024	21,265			8
Thereafter	100,120			—
Total lease payments	259,757			307
Less imputed interest	(99,689		)	(31		)
Total	$	160,068		$	276

Maturities of Financing Lease Liabilities

aturities of lease liabilities were as follows:



	Operating Leases			Finance Leases
Year Ending December 31:
Remainder of 2019	$	19,389		$	118
2020	33,597			86
2021	30,914			33
2022	28,012			31
2023	26,460			31
2024	21,265			8
Thereafter	100,120			—
Total lease payments	259,757			307
Less imputed interest	(99,689		)	(31		)
Total	$	160,068		$	276

Schedule of Future Minimum Rental Payments for Operating Leases

Under ASC 840, Leases, future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows:



	Lease Commitments		Sublease Rentals		Net
Year Ending December 31:
2019	$	35,973	$	69	$	35,904
2020	29,917		—		29,917
2021	27,592		—		27,592
2022	25,185		—		25,185
2023	23,589		—		23,589
Thereafter	104,126		—		104,126
Total	$	246,382	$	69	$	246,313

Inventories (Tables)

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of:



	June 30, 2019			December 31, 2018
Leaf tobacco	$	47,108		$	42,917
Other raw materials	3,782			3,750
Work-in-process	331			1,931
Finished goods	67,751			63,937
Inventories at current cost	118,972			112,535
LIFO adjustments	(22,038		)	(21,538		)
	$	96,934		$	90,997

Investment Securities At Fair Value (Tables)

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Investment Securities at Fair Value

Investment securities at fair value consisted of the following:



	June 30, 2019		December 31, 2018
Debt securities available for sale	$	88,831	$	84,367
Equity securities at fair value	46,269		47,202
Total investment securities at fair value	$	135,100	$	131,569

Net gains (losses) recognized on investment securities were as follows:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Net gains recognized on equity securities	$	2,311		$	3,236		$	7,051		$	491
Net gains (losses) recognized on debt securities available for sale	6			(5		)	42			(13		)
Gross realized losses on other-than-temporary impairments	(2		)	(225		)	(5		)	(811		)
Net gains (losses) recognized on investment securities	$	2,315		$	3,006		$	7,088		$	(333	)

The components of debt securities available for sale at June 30, 2019 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities	$	87,977	$	854	$	—	$	88,831
Total debt securities available for sale	$	87,977	$	854	$	—	$	88,831

The components of debt securities available for sale at December 31, 2018 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities	$	84,199	$	168	$	—	$	84,367
Total debt securities available for sale	$	84,199	$	168	$	—	$	84,367

Schedule of Maturity Dates of Fixed Income Securities

The table below summarizes the maturity dates of debt securities available for sale at June 30, 2019.



Investment Type:	Fair Value		Under 1 Year		1 Year up to 5 Years		More than 5 Years
U.S. Government securities	$	19,535	$	7,797	$	11,738	$	—
Corporate securities	47,427		13,341		34,086		—
U.S. mortgage-backed securities	8,623		4,026		4,597		—
Commercial mortgage-backed securities	394		29		365		—
Commercial paper	9,026		9,026		—		—
Index-linked U.S. bonds	2,664		2,664		—		—
Foreign fixed-income securities	1,162		654		508		—
Total debt securities available for sale by maturity dates	$	88,831	$	37,537	$	51,294	$	—

Schedule of Realized Gains (Losses)

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



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Gross realized gains on sales	$	9		$	2		$	47		$	2
Gross realized losses on sales	(3		)	(7		)	(5		)	(15		)
Net gains (losses) recognized on debt securities available for sale	$	6		$	(5	)	$	42		$	(13	)

Gross realized losses on other-than-temporary impairments	$	(2	)	$	(225	)	$	(5	)	$	(811	)

Equity Securities at Fair Value

(b) Equity Securities at Fair Value

Equity securities at fair value consisted of the following:



	June 30, 2019		December 31, 2018
Marketable equity securities	$	24,257	$	26,010
Mutual funds invested in fixed income securities	22,012		21,192
Total equity securities at fair value	$	46,269	$	47,202



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Net gains recognized on equity securities ⁽¹⁾	$	2,311	$	3,236	$	7,051	$	491
Less: Net gains recognized on equity securities sold ⁽²⁾	278		53		410		183
Net unrealized gains recognized on equity securities still held at the reporting date	$	2,033	$	3,183	$	6,641	$	308

⁽¹⁾

⁽²⁾

Includes $215 and $649 of gains recognized on sales of equity securities at fair value that qualify for the NAV practical expedient during the three and six months ended June 30, 2019. These equity securities are included in the “Long-term investments” line item on the condensed consolidated balance sheet and are further discussed in Note 6.

Long-Term Investments (Tables)

6 Months Ended

Jun. 30, 2019

Long-term Investments [Abstract]

Equity method investments

Long-term investments consisted of the following:



	June 30, 2019		December 31, 2018
Equity securities at fair value that qualify for the NAV practical expedient	$	53,175	$	54,628
Equity-method investments	10,639		11,631
	$	63,814	$	66,259

Equity-method investments consisted of the following:



	June 30, 2019		December 31, 2018
Indian Creek Investors LP (“Indian Creek”)	$	719	$	1,167
Boyar Value Fund (“Boyar”)	9,444		8,384
Ladenburg Thalmann Financial Services Inc. (“LTS”)	476		2,080
Castle Brands, Inc. (“Castle”)	—		—
	$	10,639	$	11,631

Condominium and Mixed Use Development:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Income Statement
Revenue	$	2		$	12		$	3		$	21
Other expenses	2,013			143,723			2,755			144,478
Loss from continuing operations	$	(2,011	)	$	(143,711	)	$	(2,752	)	$	(144,457	)

New Valley LLC (Tables)

6 Months Ended

Jun. 30, 2019

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:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Condominium and Mixed Use Development:
New York City SMSA	$	(1,120	)	$	(152	)	$	(3,226	)	$	(3,613	)
All other U.S. areas	(2,258		)	(321		)	(2,366		)	(826		)
	(3,378		)	(473		)	(5,592		)	(4,439		)
Apartment Buildings:
All other U.S. areas	3			(1,717		)	3			(3,297		)
	3			(1,717		)	3			(3,297		)
Hotels:
New York City SMSA	8,942			(636		)	8,234			(1,450		)
International	122			(143		)	(364		)	(568		)
	9,064			(779		)	7,870			(2,018		)
Commercial:
New York City SMSA	384			(121		)	263			(388		)
All other U.S. areas	79			913			371			1,143
	463			792			634			755

Other:	239			65			1,037			327
Equity in earnings (losses) from real estate ventures	$	6,391		$	(2,112	)	$	3,952		$	(8,672	)

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



	Range of Ownership ⁽¹⁾	June 30, 2019		December 31, 2018
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	84,593	$	65,007
All other U.S. areas	15.0% - 48.5%	28,903		31,392
		113,496		96,399
Hotels:
New York City SMSA	5.2% - 18.4%	2,615		15,782
International	49.0%	1,970		2,334
		4,585		18,116
Commercial:
New York City SMSA	49.0%	2,121		1,867
All other U.S. areas	1.6%	7,354		7,053
		9,475		8,920

Other:	15.0% - 50.0%	17,210		17,670
Investments in real estate ventures		$	144,766	$	141,105

______________________

Contributions:

The components of New Valley’s contributions to its investments in real estate ventures were as follows:



	Six Months Ended June 30,
	2019		2018
Condominium and Mixed Use Development:
New York City SMSA	$	21,537	$	533
	21,537		533
Hotels:
New York City SMSA	172		167
	172		167

Other:	199		3,643
Total contributions	$	21,908	$	4,343

Maximum Exposure to Loss:



	June 30, 2019
Condominium and Mixed Use Development:
New York City SMSA	$	89,515
All other U.S. areas	41,403
	130,918
Hotels:
New York City SMSA	2,615
International	1,970
	4,585
Commercial:
New York City SMSA	2,121
All other U.S. areas	7,354
	9,475

Other:	31,988
Total maximum exposure to loss	$	176,966

Distributions:

The components of distributions received by New Valley from its investments in real estate ventures were as follows:



	Six Months Ended June 30,
	2019		2018
Condominium and Mixed Use Development:
New York City SMSA	$	571	$	34,490
All other U.S. areas	1,279		—
	1,850		34,490
Apartment Buildings:
All other U.S. areas	3		201
	3		201
Hotels:
New York City SMSA	21,572		—
	21,572		—
Commercial:
New York City SMSA	9		—
All other U.S. areas	129		341
	138		341

Other	1,697		644
Total distributions	$	25,260	$	35,676

Combined Financial Statements for Unconsolidated Subsidiaries

Long-term investments consisted of the following:



	June 30, 2019		December 31, 2018
Equity securities at fair value that qualify for the NAV practical expedient	$	53,175	$	54,628
Equity-method investments	10,639		11,631
	$	63,814	$	66,259

Equity-method investments consisted of the following:



	June 30, 2019		December 31, 2018
Indian Creek Investors LP (“Indian Creek”)	$	719	$	1,167
Boyar Value Fund (“Boyar”)	9,444		8,384
Ladenburg Thalmann Financial Services Inc. (“LTS”)	476		2,080
Castle Brands, Inc. (“Castle”)	—		—
	$	10,639	$	11,631

Condominium and Mixed Use Development:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Income Statement
Revenue	$	2		$	12		$	3		$	21
Other expenses	2,013			143,723			2,755			144,478
Loss from continuing operations	$	(2,011	)	$	(143,711	)	$	(2,752	)	$	(144,457	)

Investments in Real Estate, net

Investments in Real Estate, net:

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



	June 30, 2019		December 31, 2018
Escena, net	$	10,009	$	10,170
Sagaponack	17,203		16,050
Investments in real estate, net	$	27,212	$	26,220

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



	June 30, 2019			December 31, 2018
Land and land improvements	$	8,910		$	8,910
Building and building improvements	1,900			1,900
Other	1,608			2,162
	12,418			12,972
Less accumulated depreciation	(2,409		)	(2,802		)
	$	10,009		$	10,170

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

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Notes payable, long-term debt and other obligations

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



	June 30, 2019			December 31, 2018
Vector:
6.125% Senior Secured Notes due 2025	$	850,000		$	850,000
10.5% Senior Notes due 2026	325,000			325,000
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $0 and $3,359*	—			226,641
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $18,852 and $29,465*	213,148			202,535
Liggett:
Revolving credit facility	31,026			28,381
Term loan under credit facility	2,262			2,409
Equipment loans	545			1,039
Other	30,264			30,440
Notes payable, long-term debt and other obligations	1,452,245			1,666,445
Less:
Debt issuance costs	(21,435		)	(23,614		)
Total notes payable, long-term debt and other obligations	1,430,810			1,642,831
Less:
Current maturities	(250,659		)	(256,134		)
Amount due after one year	$	1,180,151		$	1,386,697

______________________

Schedule of non-cash interest expense - Vector

Non-Cash Interest Expense — Vector:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Amortization of debt discount, net	$	5,447	$	20,386	$	13,972	$	38,579
Amortization of debt issuance costs	1,053		2,914		2,238		5,625
	$	6,500	$	23,300	$	16,210	$	44,204

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

Fair Value of Notes Payable and Long-Term Debt:



	June 30, 2019					December 31, 2018
	Carrying			Fair		Carrying			Fair
	Value			Value		Value			Value
Senior Notes	$	1,175,000		$	1,094,888	$	1,175,000		$	1,034,500
Variable Interest Senior Convertible Debt	213,148			239,090		429,176			468,704
Liggett and other	64,097			64,105		62,269			62,255
Notes payable and long-term debt	$	1,452,245	(1)	$	1,398,083	$	1,666,445	(1)	$	1,565,459

______________________

⁽¹⁾The carrying value does not include the carrying value of the embedded derivative. See Note 12.

Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of contingencies

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



State		Number of Cases
Florida		24
Illinois		5
New York		2
Louisiana		2
West Virginia		2
Ohio		1

The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2019 was 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, 2019	$	36,561		$	310		$	36,871		$	16,383	$	21,794		$	38,177
Expenses	80,128			655			80,783			—		—			—
Change in MSA obligations capitalized as inventory	1,813			—			1,813			—		—			—
Payments	(31,959		)	(355		)	(32,314		)	—		—			—
Reclassification to/(from) non-current liabilities	(892		)	3,338			2,446			892		(3,338		)	(2,446		)
Interest on withholding	—			95			95			—		1,076			1,076
Balance as of June 30, 2019	$	85,651		$	4,043		$	89,694		$	17,275	$	19,532		$	36,807

The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2018 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, 2018	$	12,385		$	260		$	12,645		$	21,479		$	19,840		$	41,319
Expenses	79,739			525			80,264			—			—			—
NPM Settlement adjustment	(595		)	—			(595		)	(5,703		)	—			(5,703		)
Change in MSA obligations capitalized as inventory	(275		)	—			(275		)	—			—			—
Payments	(9,463		)	(250		)	(9,713		)	—			—			—
Reclassification to/(from) non-current liabilities	(647		)	218			(429		)	647			(218		)	429
Interest on withholding	—			19			19			—			1,048			1,048
Balance as of June 30, 2018	$	81,144		$	772		$	81,916		$	16,423		$	20,670		$	37,093

Schedule of Net Benefit Costs

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14472-108349

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14326-108349

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14453-108349

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14615-108349

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118943654&loc=d3e12021-110248

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14394-108349

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14435-108349

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14557-108349

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=118943654&loc=d3e12053-110248

+ Details

Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2019

Retirement Benefits [Abstract]

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



	Pension Benefits						Pension Benefits						Other Postretirement Benefits						Other Postretirement Benefits
	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
	2019			2018			2019			2018			2019			2018			2019			2018
Service cost — benefits earned during the period	$	134		$	147		$	267		$	294		$	1		$	—		$	1		$	1
Interest cost on projected benefit obligation	1,215			1,124			2,430			2,246			87			82			173			164
Expected return on assets	(1,219		)	(1,393		)	(2,437		)	(2,786		)	—			—			—			—
Amortization of prior service cost	—			—			—			—			1			—			2			—
Amortization of net loss (gain)	501			451			1,002			903			(10		)	(10		)	(54		)	(20		)
Net expense	$	631		$	329		$	1,262		$	657		$	79		$	72		$	122		$	145

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income tax expense (benefit)

The Company’s income tax expense consisted of the following:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Income before provision for income taxes	$	56,766		$	31,756		$	78,548		$	37,368
Income tax expense using estimated annual effective income tax rate	17,566			14,209			24,319			16,720
Changes in effective tax rates	(110		)	455			—			—
Change in estimate for the impact of Tax Cuts and Jobs Act of 2017	—			(1,809		)	—			(1,809		)
Impact of discrete items, net	3			(95		)	(111		)	(203		)
Income tax expense	$	17,459		$	12,760		$	24,208		$	14,708

Investments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

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

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



	Fair Value Measurements as of June 30, 2019
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Assets:
Money market funds ⁽¹⁾	$	196,671	$	196,671	$	—	$	—

Commercial paper⁽¹⁾	43,602		—		43,602		—

Certificates of deposit ⁽²⁾	2,179		—		2,179		—

Money market funds securing legal bonds ⁽²⁾	535		535		—		—

Investment securities at fair value
Equity securities at fair value
Marketable equity securities	24,257		24,257		—		—
Mutual funds invested in fixed-income securities	22,012		22,012		—		—
Total equity securities at fair value	46,269		46,269		—		—
Debt securities available for sale
U.S. government securities	19,535		—		19,535		—
Corporate securities	47,427		—		47,427		—
U.S. government and federal agency	8,623		—		8,623		—
Commercial mortgage-backed securities	394		—		394		—
Commercial paper	9,026		—		9,026		—
Index-linked U.S. bonds	2,664		—		2,664		—
Foreign fixed-income securities	1,162		—		1,162		—
Total debt securities available for sale	88,831		—		88,831		—

Total investment securities at fair value	135,100		46,269		88,831		—

Long-term investments
Equity securities at fair value that qualify for the NAV practical expedient ⁽³⁾	53,175		—		—		—
Total	$	431,262	$	243,475	$	134,612	$	—

Liabilities:
Fair value of contingent liability	$	6,195	$	—	$	—	$	6,195
Fair value of derivatives embedded within convertible debt	17,287		—		—		17,287
Total	$	23,482	$	—	$	—	$	23,482


(1)	Amounts included in Cash and cash equivalents on the condensed consolidated balance sheet, except for $5,086 that is included in Other current assets and $3,910 that is included in Other assets.


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


(3)	In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy.



	Fair Value Measurements as of December 31, 2018
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Assets:
Money market funds ⁽¹⁾	$	448,560	$	448,560	$	—	$	—

Commercial paper⁽¹⁾	46,062		—		46,062		—

Certificates of deposit ⁽²⁾	2,251		—		2,251		—

Money market funds securing legal bonds ⁽²⁾	535		535		—		—

Investment securities at fair value
Equity securities at fair value
Marketable equity securities	26,010		26,010		—		—
Mutual funds invested in fixed-income securities	21,192		21,192		—		—
Total equity securities at fair value	47,202		47,202		—		—
Debt securities available for sale
U.S. government securities	28,514		—		28,514		—
Corporate securities	41,733		—		41,733		—
U.S. government and federal agency	4,369		—		4,369		—
Commercial mortgage-backed securities	401		—		401		—
Commercial paper	5,870		—		5,870		—
Index-linked U.S. bonds	2,330		—		2,330		—
Foreign fixed-income securities	1,150		—		1,150		—
Total debt securities available for sale	84,367		—		84,367		—

Total investment securities at fair value	131,569		47,202		84,367		—

Long-term investments
Equity securities at fair value that qualify for the NAV practical expedient ⁽³⁾	54,628		—		—		—
Total	$	683,605	$	496,297	$	132,680	$	—

Liabilities:
Fair value of contingent liability	$	6,304	$	—	$	—	$	6,304
Fair value of derivatives embedded within convertible debt	31,424		—		—		31,424
Total	$	37,728	$	—	$	—	$	37,728


(1)	Amounts included in Cash and cash equivalents on the condensed consolidated balance sheet, except for $2,570 that is included in current restricted assets and $3,910 that is included in non-current restricted assets.


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


(3)	In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy.

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 June 30, 2019:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	June 30, 2019		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	17,287	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	9.75
				Convertible trading price (as a percentage of par value)	103.06		%
				Volatility	33.11		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	5.25% - 7.25% (6.25%)

Fair value of contingent liability	$	6,195	Monte Carlo simulation model	Estimated fair value of the Douglas Elliman reporting unit	$	320,000
				Risk-free rate for a 3.5 year term	1.71		%
				Leverage-adjusted equity volatility of peer firms	26.24		%

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2018:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2018		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	31,424	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	9.73
				Convertible trading price (as a percentage of par value)	100.31		%
				Volatility	20.39		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	8.0% - 9.0% (8.5%)

Fair value of contingent liability	$	6,304	Monte Carlo simulation model	Estimated fair value of the Douglas Elliman reporting unit	$	320,000
				Risk-free rate for a 4-year term	2.45		%
				Leverage-adjusted equity volatility of peer firms	30.22		%

Financial information for the company's operations before taxes

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.

+ References + Details

Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Financial information for the Company’s operations before taxes and non-controlling interests for the three and six months ended June 30, 2019 and 2018 were as follows:



				Real				Corporate
	Tobacco			Estate				and Other			Total
Three months ended June 30, 2019
Revenues	$	294,501		$	243,931			$	—		$	538,432
Operating income (loss)	68,651		(1)	14,453				(6,860		)	76,244
Equity in earnings from real estate ventures	—			6,391				—			6,391
Depreciation and amortization	1,950			2,024				250			4,224

Three months ended June 30, 2018
Revenues	$	274,833		$	206,655			$	—		$	481,488
Operating income (loss)	62,515		(2)	5,867				(6,521		)	61,861
Equity in losses from real estate ventures	—			(2,112		)		—			(2,112		)
Depreciation and amortization	2,075			2,418				256			4,749

Six months ended June 30, 2019
Revenues	$	551,257		$	408,099			$	—		$	959,356
Operating income (loss)	128,795		(3)	4,044				(14,005		)	118,834
Equity in earnings from real estate ventures	—			3,952				—			3,952
Depreciation and amortization	3,907			4,525				500			8,932
Capital expenditures	2,753			3,567				—			6,320

Six months ended June 30, 2018
Revenues	$	541,949		$	368,505			$	—		$	910,454
Operating income (loss)	125,926		(4)	(2,893		)	(5)	(13,088		)	109,945
Equity in losses from real estate ventures	—			(8,672		)		—			(8,672		)
Depreciation and amortization	4,112			4,707				517			9,336
Capital expenditures	2,072			6,529				15			8,616


⁽¹⁾	Operating income includes $655 of litigation settlement and judgment expense.


⁽²⁾	Operating income includes $2,808 of income from a settlement of a long-standing dispute related to the Master Settlement Agreement, and $525 of litigation settlement and judgment expense.

⁽³⁾Operating income includes $655 of litigation settlement and judgment expense.


⁽⁴⁾	Operating income includes $6,298 of income from a settlement of a long-standing dispute related to the Master Settlement Agreement, and $525 of litigation settlement and judgment expense.

⁽⁵⁾

Operating income includes $2,469 of litigation settlement and judgment income.

Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS



				June 30, 2019
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	174,786		$	69,154	$	79,921	$	—		$	323,861
Investment securities at fair value	135,100			—		—		—			135,100
Accounts receivable - trade, net	—			13,616		30,731		—			44,347
Intercompany receivables	41,312			—		—		(41,312		)	—
Inventories	—			96,934		—		—			96,934
Income taxes receivable, net	—			—		387		(387		)	—
Other current assets	4,788			6,532		26,931		—			38,251
Total current assets	355,986			186,236		137,970		(41,699		)	638,493
Property, plant and equipment, net	404			36,799		47,059		—			84,262
Investments in real estate, net	—			—		27,212		—			27,212
Long-term investments (of which $53,175 were carried at fair value)	63,814			—		—		—			63,814
Investments in real estate ventures	—			—		144,766		—			144,766
Operating lease right of use assets	7,623			5,215		122,296		—			135,134
Investments in consolidated subsidiaries	429,782			245,329		—		(675,111		)	—
Goodwill and other intangible assets, net	—			107,511		158,571		—			266,082
Other assets	15,016			38,966		41,415		—			95,397
Total assets	$	872,625		$	620,056	$	679,289	$	(716,810	)	$	1,455,160
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	211,712		$	38,690	$	5,257	$	(5,000	)	$	250,659
Current portion of fair value of derivatives embedded within convertible debt	17,287			—		—		—			17,287
Intercompany payables	—			197		41,115		(41,312		)	—
Income taxes payable, net	6,008			2,724		—		(387		)	8,345
Current payments due under the Master Settlement Agreement	—			85,651		—		—			85,651
Current operating lease liability	1,020			1,918		17,401		—			20,339
Other current liabilities	46,463			64,050		65,721		(448		)	175,786
Total current liabilities	282,490			193,230		129,494		(47,147		)	558,067
Notes payable, long-term debt and other obligations, less current portion	1,155,001			25,143		25,007		(25,000		)	1,180,151
Non-current employee benefits	46,621			15,480		—		—			62,101
Deferred income taxes, net	(12,241		)	20,507		33,199		—			41,465
Non-current operating lease liability	7,541			3,901		128,287		—			139,729
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement	397			36,806		43,140		—			80,343
Total liabilities	1,479,809			295,067		359,127		(72,147		)	2,061,856
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(607,184		)	324,989		319,674		(644,663		)	(607,184		)
Non-controlling interest	—			—		488		—			488
Total stockholders' (deficiency) equity	(607,184		)	324,989		320,162		(644,663		)	(606,696		)
Total liabilities and stockholders' deficiency	$	872,625		$	620,056	$	679,289	$	(716,810	)	$	1,455,160

CONDENSED CONSOLIDATING BALANCE SHEETS



				December 31, 2018
						Subsidiary					Consolidated
	Parent/			Subsidiary		Non-		Consolidating			Vector Group
	Issuer			Guarantors		Guarantors		Adjustments			Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	474,880		$	23,308	$	86,393	$	—		$	584,581
Investment securities at fair value	131,569			—		—		—			131,569
Accounts receivable - trade, net	—			15,440		18,806		—			34,246
Intercompany receivables	38,391			—		—		(38,391		)	—
Inventories	—			90,997		—		—			90,997
Income taxes receivable, net	—			—		1,268		(1,268		)	—
Other current assets	1,500			7,599		21,729		—			30,828
Total current assets	646,340			137,344		128,196		(39,659		)	872,221
Property, plant and equipment, net	506			38,562		47,668		—			86,736
Investments in real estate, net	—			—		26,220		—			26,220
Long-term investments (of which $54,628 were carried at fair value)	66,259			—		—		—			66,259
Investments in real estate ventures	—			—		141,105		—			141,105
Investments in consolidated subsidiaries	431,288			252,113		—		(683,401		)	—
Goodwill and other intangible assets, net	—			107,511		159,100		—			266,611
Other assets	14,616			38,154		37,582		—			90,352
Total assets	$	1,159,009		$	573,684	$	539,871	$	(723,060	)	$	1,549,504
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	226,343		$	29,480	$	311	$	—		$	256,134
Current portion of fair value of derivatives embedded within convertible debt	6,635			—		—		—			6,635
Current portion of employee benefits	—			—		—		—			—
Intercompany payables	—			479		37,912		(38,391		)	—
Income taxes payable, net	5,257			1,263		—		(1,268		)	5,252
Current payments due under the Master Settlement Agreement	—			36,561		—		—			36,561
Other current liabilities	55,915			73,279		51,144		—			180,338
Total current liabilities	294,150			141,062		89,367		(39,659		)	484,920
Notes payable, long-term debt and other obligations, less current portion	1,354,219			2,349		30,129		—			1,386,697
Fair value of derivatives embedded within convertible debt	24,789			—		—		—			24,789
Non-current employee benefits	45,615			15,673		—		—			61,288
Deferred income taxes, net	(13,084		)	17,732		32,763		—			37,411
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement	1,379			38,179		62,207		—			101,765
Total liabilities	1,707,068			214,995		214,466		(39,659		)	2,096,870
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(548,059		)	358,689		324,712		(683,401		)	(548,059		)
Non-controlling interest	—			—		693		—			693
Total stockholders' (deficiency) equity	(548,059		)	358,689		325,405		(683,401		)	(547,366		)
Total liabilities and stockholders' deficiency	$	1,159,009		$	573,684	$	539,871	$	(723,060	)	$	1,549,504

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Three Months Ended June 30, 2019
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	294,621		$	243,931		$	(120	)	$	538,432
Expenses:
Cost of sales	—			204,461			163,713			—			368,174
Operating, selling, administrative and general expenses	9,515			18,167			65,797			(120		)	93,359
Litigation settlement and judgment expense	—			655			—			—			655
Management fee expense	—			2,992			—			(2,992		)	—
Operating (loss) income	(9,515		)	68,346			14,421			2,992			76,244
Other income (expenses):
Interest expense	(31,706		)	(1,043		)	(228		)	224			(32,753		)
Change in fair value of derivatives embedded within convertible debt	3,788			—			—			—			3,788
Equity in earnings from real estate ventures	—			—			6,391			—			6,391
Equity in earnings in consolidated subsidiaries	66,163			15,138			—			(81,301		)	—
Management fee income	2,992			—			—			(2,992		)	—
Other, net	2,017			447			632			—			3,096
Income before provision for income taxes	33,739			82,888			21,216			(81,077		)	56,766
Income tax benefit (expense)	5,568			(17,118		)	(5,909		)	—			(17,459		)
Net income	39,307			65,770			15,307			(81,077		)	39,307
Net loss attributed to non-controlling interest	—			—			—			—			—
Net income attributed to Vector Group Ltd.	$	39,307		$	65,770		$	15,307		$	(81,077	)	$	39,307
Comprehensive loss attributed to non-controlling interest	$	—		$	—		$	—		$	—		$	—
Comprehensive income attributed to Vector Group Ltd.	$	39,912		$	66,004		$	15,307		$	(81,311	)	$	39,912

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Three Months Ended June 30, 2018
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	274,953		$	206,655		$	(120	)	$	481,488
Expenses:
Cost of sales	—			192,761			140,005			—			332,766
Operating, selling, administrative and general expenses	8,320			16,570			61,566			(120		)	86,336
Litigation settlement and judgment expense	—			525			—			—			525
Management fee expense	—			2,877			—			(2,877		)	—
Operating (loss) income	(8,320		)	62,220			5,084			2,877			61,861
Other income (expenses):
Interest expense	(47,738		)	(676		)	(7		)	—			(48,421		)
Change in fair value of derivatives embedded within convertible debt	10,717			—			—			—			10,717
Equity in losses from real estate ventures	—			—			(2,112		)	—			(2,112		)
Equity in earnings in consolidated subsidiaries	52,092			—			—			(52,092		)	—
Management fee income	2,877			—			—			(2,877		)	—
Other, net	6,065			3,310			336			—			9,711
Income before provision for income taxes	15,693			64,854			3,301			(52,092		)	31,756
Income tax benefit (expense)	2,125			(15,688		)	803			—			(12,760		)
Net income	17,818			49,166			4,104			(52,092		)	18,996
Net income attributed to non-controlling interest	—			—			(1,178		)	—			(1,178		)
Net income attributed to Vector Group Ltd.	$	17,818		$	49,166		$	2,926		$	(52,092	)	$	17,818
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(1,178	)	$	—		$	(1,178	)
Comprehensive income attributed to Vector Group Ltd.	$	18,137		$	49,312		$	2,926		$	(52,238	)	$	18,137

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Six Months Ended June 30, 2019
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	551,496		$	408,099		$	(239	)	$	959,356
Expenses:
Cost of sales	—			381,764			272,430			—			654,194
Operating, selling, administrative and general expenses	19,346			34,858			131,708			(239		)	185,673
Litigation settlement and judgment expense	—			655			—			—			655
Management fee expense	—			5,985			—			(5,985		)	—
Operating (loss) income	(19,346		)	128,234			3,961			5,985			118,834
Other income (expenses):
Interest expense	(68,254		)	(2,010		)	(457		)	448			(70,273		)
Change in fair value of derivatives embedded within convertible debt	14,137			—			—			—			14,137
Equity in earnings from real estate ventures	—			—			3,952			—			3,952
Equity in earnings in consolidated subsidiaries	101,428			4,724			—			(106,152		)	—
Management fee income	5,985			—			—			(5,985		)	—
Other, net	9,962			600			1,336			—			11,898
Income before provision for income taxes	43,912			131,548			8,792			(105,704		)	78,548
Income tax benefit (expense)	10,348			(32,066		)	(2,490		)	—			(24,208		)
Net income	54,260			99,482			6,302			(105,704		)	54,340
Net income attributed to non-controlling interest	—			—			(80		)	—			(80		)
Net income attributed to Vector Group Ltd.	$	54,260		$	99,482		$	6,222		$	(105,704	)	$	54,260
Comprehensive income attributed to non-controlling interest	$	—		$	—		$	(80	)	$	—		$	(80	)
Comprehensive income attributed to Vector Group Ltd.	$	55,446		$	99,951		$	6,222		$	(106,173	)	$	55,446

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



				Six Months Ended June 30, 2018
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Revenues	$	—		$	542,188		$	368,505		$	(239	)	$	910,454
Expenses:
Cost of sales	—			377,723			249,318			—			627,041
Operating, selling, administrative and general expenses	17,416			32,845			125,390			(239		)	175,412
Litigation settlement and judgment expense (income)	—			525			(2,469		)	—			(1,944		)
Management fee expense	—			5,754			—			(5,754		)	—
Operating (loss) income	(17,416		)	125,341			(3,734		)	5,754			109,945
Other income (expenses):
Interest expense	(92,969		)	(1,343		)	(56		)	—			(94,368		)
Change in fair value of derivatives embedded within convertible debt	21,284			—			—			—			21,284
Equity in losses from real estate ventures	—			—			(8,672		)	—			(8,672		)
Equity in earnings in consolidated subsidiaries	86,513						—			(86,513		)	—
Management fee income	5,754			—			—			(5,754		)	—
Other, net	8,820			(319		)	678			—			9,179
Income (loss) before provision for income taxes	11,986			123,679			(11,784		)	(86,513		)	37,368
Income tax benefit (expense)	13,043			(31,548		)	3,797			—			(14,708		)
Net income (loss)	25,029			92,131			(7,987		)	(86,513		)	22,660
Net loss attributed to non-controlling interest	—			—			2,369			—			2,369
Net income (loss) attributed to Vector Group Ltd.	$	25,029		$	92,131		$	(5,618	)	$	(86,513	)	$	25,029
Comprehensive loss attributed to non-controlling interest	$	—		$	—		$	2,369		$	—		$	2,369
Comprehensive income (loss) attributed to Vector Group Ltd.	$	25,598		$	92,415		$	(5,618	)	$	(86,797	)	$	25,598

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Six Months Ended June 30, 2019
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	78,661		$	148,639		$	10,158		$	(139,356	)	$	98,102
Cash flows from investing activities:
Sale of investment securities	12,942			—			—			—			12,942
Maturities of investment securities	28,610			—			—			—			28,610
Purchase of investment securities	(44,222		)	—			—			—			(44,222		)
Investments in real estate ventures	—			—			(21,908		)	—			(21,908		)
Purchase of subsidiaries	—			—			(668		)	—			(668		)
Distributions from investments in real estate ventures	—			—			23,200			—			23,200
Increase in cash surrender value of life insurance policies	(385		)	(404		)	—			—			(789		)
(Increase) decrease in restricted assets	(15		)	683			—			—			668
Investments in subsidiaries	(27,482		)	—			—			27,482			—
Proceeds from sale of fixed assets	—			8			—			—			8
Capital expenditures	—			(2,753		)	(3,567		)	—			(6,320		)
Pay downs of investment securities	545			—			—			—			545
Investments in real estate, net	—			—			(1,153		)	—			(1,153		)
Net cash used in investing activities	(30,007		)	(2,466		)	(4,096		)	27,482			(9,087		)
Cash flows from financing activities:
Deferred financing costs	—			(33		)	—			—			(33		)
Repayments of debt	(230,000		)	(621		)	(150		)	—			(230,771		)
Borrowings under revolver	—			172,224			—			—			172,224
Repayments on revolver	—			(169,727		)	—			—			(169,727		)
Capital contributions received	—			575			26,907			(27,482		)	—
Intercompany dividends paid	—			(102,739		)	(36,617		)	139,356			—
Dividends and distributions on common stock	(118,748		)	—			—			—			(118,748		)
Distributions to non-controlling interest	—			—			(285		)	—			(285		)
Net cash used in financing activities	(348,748		)	(100,321		)	(10,145		)	111,874			(347,340		)
Net (decrease) increase in cash, cash equivalents and restricted cash	(300,094		)	45,852			(4,083		)	—			(258,325		)
Cash, cash equivalents and restricted cash, beginning of period	474,880			23,849			93,000			—			591,729
Cash, cash equivalents and restricted cash, end of period	$	174,786		$	69,701		$	88,917		$	—		$	333,404

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



				Six Months Ended June 30, 2018
							Subsidiary						Consolidated
	Parent/			Subsidiary			Non-			Consolidating			Vector Group
	Issuer			Guarantors			Guarantors			Adjustments			Ltd.
Net cash provided by operating activities	$	88,944		$	144,713		$	4,109		$	(115,340	)	$	122,426
Cash flows from investing activities:
Sale of investment securities	2,647			—			—			—			2,647
Maturities of investment securities	10,598			—			—			—			10,598
Purchase of investment securities	(12,402		)	—			—			—			(12,402		)
Investments in real estate ventures	—			—			(4,343		)	—			(4,343		)
Investments in real estate, net	—			—			(1,009		)	—			(1,009		)
Acquisition of a business	—			—			(403		)	—			(403		)
Distributions from investments in real estate ventures	—			—			27,134			—			27,134
Increase in cash surrender value of life insurance policies	(408		)	(401		)	—			—			(809		)
Decrease in restricted assets	22			240			—			—			262
Repayments of notes receivable	20,000			—			32			(20,000		)	32
Pay downs of investment securities	928			—			—			—			928
Investments in subsidiaries	(6,790		)	—			—			6,790			—
Capital expenditures	(15		)	(2,072		)	(6,529		)	—			(8,616		)
Net cash provided by (used in) investing activities	14,580			(2,233		)	14,882			(13,210		)	14,019
Cash flows from financing activities:
Repayments of debt	—			(20,840		)	(147		)	20,000			(987		)
Borrowings under revolver	—			134,310			—			—			134,310
Repayments on revolver	—			(137,877		)	—			—			(137,877		)
Capital contributions received	—			500			6,290			(6,790		)	—
Intercompany dividends paid	—			(83,219		)	(32,121		)	115,340			—
Dividends and distributions on common stock	(112,462		)	—			—			—			(112,462		)
Distributions to non-controlling interest	—			—			(359		)	—			(359		)
Net cash used in financing activities	(112,462		)	(107,126		)	(26,337		)	128,550			(117,375		)
Net (decrease) increase in cash, cash equivalents and restricted cash	(8,938		)	35,354			(7,346		)	—			19,070
Cash, cash equivalents and restricted cash, beginning of period	194,719			20,175			96,043			—			310,937
Cash, cash equivalents and restricted cash, end of period	$	185,781		$	55,529		$	88,697		$	—		$	330,007

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jan. 01, 2019	Dec. 31, 2018	Sep. 27, 2018
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	$ 17,287			$ 31,424
Impact of adoption of new accounting standards	(1,550)	$ (12,857)
AOCI Attributable to Parent
Embedded Derivative [Line Items]
Impact of adoption of new accounting standards	(4,697)	$ (6,036)
ASU 2018-02
Embedded Derivative [Line Items]
Decrease in accumulated deficit			$ 4,697
Minimum
Embedded Derivative [Line Items]
Fair market value of embedded derivatives at the midpoint of the inputs	17,221			31,371
Maximum
Embedded Derivative [Line Items]
Fair market value of embedded derivatives at the midpoint of the inputs	$ 17,355			$ 31,519

Summary of Significant Accounting Policies (Net Income (Loss) for Purposes of Determining Basic and Diluted EPS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounting Policies [Abstract]
Net income attributed to Vector Group Ltd.	$ 39,307	$ 17,818	$ 54,260	$ 25,029
Income attributable to 7.5% Variable Interest Senior Convertible Notes	0	0	(1,246)	0
Income attributed to participating securities	(2,027)	(1,692)	(4,029)	(3,464)
Income attributed to participating securities	(2,027)	(1,692)	(4,029)	(3,464)
Net income applicable to common shares attributed to Vector Group Ltd.	37,280	16,126	50,231	21,565
Net income applicable to common shares attributed to Vector Group Ltd.	$ 37,280	$ 16,126	$ 48,985	$ 21,565

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Summary of Significant Accounting Policies (Basic and Diluted Earnings Per Share (in shares)) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounting Policies [Abstract]
Weighted-average shares for basic EPS (in shares)	139,532,405	139,301,817	139,514,592	139,295,176
Plus incremental shares related to convertible debt (in shares)	0	0	1,380,717	0
Plus incremental shares related to stock options and non-vested restricted stock (in shares)	11,507	335,827	13,564	336,287
Weighted-average shares for diluted EPS (in shares)	139,543,912	139,637,644	140,908,873	139,631,463

Summary of Significant Accounting Policies (Antidilutive Securities Excluded from Earnings Per Share) (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Weighted-average shares of non-vested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	1,340,781	0	1,340,781	0
Weighted-average expense per share (in dollars per share)	$ 18.82	$ 0	$ 18.82	$ 0
Weighted-average number of shares issuable upon conversion of debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	10,901,963	28,819,626	10,901,963	28,819,626
Weighted-average conversion price (in dollars per share)	$ 21.28	$ 16.96	$ 21.28	$ 16.96

Summary of Significant Accounting Policies (Schedule of Other, Net) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounting Policies [Abstract]
Interest and dividend income	$ 3,139	$ 2,145	$ 6,347	$ 4,067
Equity in (losses) earnings from investments	(1,685)	4,813	(323)	5,975
Net gains (losses) recognized on investment securities	2,315	3,006	7,088	(333)
Net periodic benefit cost other than the service costs	(575)	(254)	(1,116)	(507)
Other (expense) income	(98)	1	(98)	(23)
Other, net	$ 3,096	$ 9,711	$ 11,898	$ 9,179

Summary of Significant Accounting Policies (Other Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Restricted assets	$ 6,327	$ 6,306
Prepaid pension costs	24,489	23,869
Other assets	64,581	60,177
Other assets	$ 95,397	$ 90,352

Summary of Significant Accounting Policies (Other Current Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Accounts payable	$ 9,852		$ 13,144
Accrued promotional expenses	26,586		37,940
Accrued excise and payroll taxes payable, net	16,044		14,612
Accrued interest	32,375		38,673
Commissions payable	26,698		12,975
Accrued salary and benefits	21,231		30,228
Contract liabilities	8,159	$ 7,071	0
Allowance for sales returns	7,042		6,935
Other current liabilities	27,799		25,831
Total other current liabilities	$ 175,786		$ 180,338

Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets, Net) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 78,008	$ 77,568
Intangibles with a finite life, net	563	1,532
Total goodwill and other intangible assets, net	266,082	266,611
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

Summary of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 323,861	$ 584,581
Restricted cash and cash equivalents included in other current assets	5,086	2,697
Restricted cash and cash equivalents included in other assets	4,457	4,451
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 333,404	$ 591,729	$ 330,007	$ 310,937

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 538,432	$ 481,488	$ 959,356	$ 910,454
Tobacco
Disaggregation of Revenue [Line Items]
Revenues	294,501	274,833	551,257	541,949
Tobacco \| Core Discount Brands - EAGLE 20’s, PYRAMID, GRAND PRIX, LIGGETT SELECT, and EVE
Disaggregation of Revenue [Line Items]
Revenues	267,277	248,370	500,383	489,901
Tobacco \| Other Brands
Disaggregation of Revenue [Line Items]
Revenues	27,224	26,463	50,874	52,048
Real estate
Disaggregation of Revenue [Line Items]
Revenues	243,931	206,655	408,099	368,505
Total real estate revenues	243,931	206,655	408,099	368,505
Real estate \| New York City
Disaggregation of Revenue [Line Items]
Total real estate revenues	137,067	95,294	222,299	174,450
Real estate \| Northeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	42,450	45,460	74,978	79,450
Real estate \| Southeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	31,760	36,697	57,361	61,388
Real estate \| West
Disaggregation of Revenue [Line Items]
Total real estate revenues	32,654	29,204	53,461	53,217
Real estate \| Commission brokerage income
Disaggregation of Revenue [Line Items]
Total real estate revenues	207,158	179,411	345,448	318,307
Real estate \| Commission brokerage income \| New York City
Disaggregation of Revenue [Line Items]
Total real estate revenues	104,301	76,175	169,980	136,583
Real estate \| Commission brokerage income \| Northeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	39,880	43,228	70,991	75,906
Real estate \| Commission brokerage income \| Southeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	31,324	31,909	54,295	56,307
Real estate \| Commission brokerage income \| West
Disaggregation of Revenue [Line Items]
Total real estate revenues	31,653	28,099	50,182	49,511
Real estate \| Development marketing
Disaggregation of Revenue [Line Items]
Total real estate revenues	23,176	15,525	37,199	26,745
Real estate \| Development marketing \| New York City
Disaggregation of Revenue [Line Items]
Total real estate revenues	22,718	10,559	34,104	21,169
Real estate \| Development marketing \| Northeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	0	129	0	252
Real estate \| Development marketing \| Southeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	436	4,788	3,066	5,081
Real estate \| Development marketing \| West
Disaggregation of Revenue [Line Items]
Total real estate revenues	22	49	29	243
Real estate \| Property management revenue
Disaggregation of Revenue [Line Items]
Total real estate revenues	10,218	8,741	18,569	17,079
Real estate \| Property management revenue \| New York City
Disaggregation of Revenue [Line Items]
Total real estate revenues	10,048	8,560	18,215	16,698
Real estate \| Property management revenue \| Northeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	170	181	354	381
Real estate \| Property management revenue \| Southeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	0	0	0	0
Real estate \| Property management revenue \| West
Disaggregation of Revenue [Line Items]
Total real estate revenues	0	0	0	0
Real estate \| Title fees
Disaggregation of Revenue [Line Items]
Total real estate revenues	2,400	1,922	3,633	2,911
Real estate \| Title fees \| New York City
Disaggregation of Revenue [Line Items]
Total real estate revenues	0	0	0	0
Real estate \| Title fees \| Northeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	2,400	1,922	3,633	2,911
Real estate \| Title fees \| Southeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	0	0	0	0
Real estate \| Title fees \| West
Disaggregation of Revenue [Line Items]
Total real estate revenues	0	0	0	0
Real estate \| Total Douglas Elliman revenue
Disaggregation of Revenue [Line Items]
Total real estate revenues	242,952	205,599	404,849	365,042
Real estate \| Total Douglas Elliman revenue \| New York City
Disaggregation of Revenue [Line Items]
Total real estate revenues	137,067	95,294	222,299	174,450
Real estate \| Total Douglas Elliman revenue \| Northeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	42,450	45,460	74,978	79,450
Real estate \| Total Douglas Elliman revenue \| Southeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	31,760	36,697	57,361	61,388
Real estate \| Total Douglas Elliman revenue \| West
Disaggregation of Revenue [Line Items]
Total real estate revenues	31,675	28,148	50,211	49,754
Real estate \| Other real estate revenues
Disaggregation of Revenue [Line Items]
Total real estate revenues	979	1,056	3,250	3,463
Real estate \| Other real estate revenues \| New York City
Disaggregation of Revenue [Line Items]
Total real estate revenues	0	0	0	0
Real estate \| Other real estate revenues \| Northeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	0	0	0	0
Real estate \| Other real estate revenues \| Southeast
Disaggregation of Revenue [Line Items]
Total real estate revenues	0	0	0	0
Real estate \| Other real estate revenues \| West
Disaggregation of Revenue [Line Items]
Total real estate revenues	$ 979	$ 1,056	$ 3,250	$ 3,463

Revenue Recognition - Contract Balances (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jan. 01, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Receivables, which are included in accounts receivable - trade, net	$ 2,321,000		$ 2,321,000		$ 2,050,000
Contract assets, net, which are included in other current assets	9,481,000		9,481,000		9,264,000
Payables, which are included in other current liabilities	1,373,000		1,373,000		1,082,000
Contract liabilities, which are included in other current liabilities	8,159,000		8,159,000		7,071,000	$ 0
Contract assets, net, which are included in other assets	18,693,000		18,693,000		15,794,000
Contract liabilities, which are included in other liabilities	34,398,000		$ 34,398,000		$ 30,445,000
Commercial leasing contracts, receivable and payable term expectation			12 months
Contract liabilities estimated to be recognized over next twelve months	8,159,000		$ 8,159,000
Revenue recognized on contract liabilities			5,031,000
Revenue recognized relating to performance obligations satisfied or partially satisfied in prior periods	$ 0	$ 0	$ 0	$ 0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation term	2 years		2 years

Revenue Recognition - Other Disclosures (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Receivable decreased	$ (271)
Payable increased	291
Contract liabilities increase	5,041
Advance payments received from customer	10,747
Performance obligations satisfied, offset by cash collections
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Receivable decreased	2,206
Payable increased	1,532
Contract liabilities increase	3,116
Advance payments received from customer	$ 8,217

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Operating lease right of use assets	$ 135,134	$ 135,134
Operating lease liabilities	160,068	160,068
Increase to accumulated deficit	597,786	$ 597,786		$ 542,169
Lease renewal term		5 years
Lease termination term		1 year
Lease not yet commenced	1,102	$ 1,102
One Lease, Lessor Affiliate of Significant Investor
Lessee, Lease, Description [Line Items]
Operating lease right of use assets	1,446	1,446
Operating lease liabilities	1,505	1,505
Rental expense	$ 114	$ 229
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms		1 year
Lease not yet commenced, term	2 years	2 years
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms		15 years
Lease not yet commenced, term	10 years	10 years
ASU 2016-02
Lessee, Lease, Description [Line Items]
Operating lease right of use assets			$ 128,890
Operating lease liabilities			153,676
Deferred rent			22,881
Tenant improvements receivable			355
Increase to accumulated deficit			$ 1,550

Leases - Lease Expense and Cash Outflows from Operating and Finance Leases (Details) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 9,630	$ 18,505
Short-term lease cost	279	513
Variable lease cost	898	1,690
Amortization	63	119
Interest on lease liabilities	4	7
Total lease cost	$ 10,874	20,834
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases		18,440
Operating cash flows from finance leases		7
Financing cash flows from finance leases		113
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		13,061
Finance leases		$ 123

Leases - Supplemental Balance Sheet Information (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Operating leases:
Operating lease right-of-use assets	$ 135,134
Current operating lease liability	20,339
Non-current operating lease liability	139,729
Total operating lease liabilities	160,068
Finance leases:
Finance lease at cost	309
Accumulated amortization	166
Finance lease net	143
Current portion of notes payable and long-term debt	168
Notes payable, long-term debt and other obligations, less current portion	108
Total finance lease liabilities	$ 276
Weighted average remaining lease term:
Operating leases	8 years 7 months 13 days
Finance leases	2 years 7 months 6 days
Weighted average discount rate:
Operating leases	11.05%
Finance leases	8.46%
Financing lease equipment
Finance leases:
Finance lease at cost	$ 729
Accumulated amortization	596
Finance lease net	$ 133

Leases - Maturities of Operating and Financing Lease Liabilities (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Operating Leases
Remainder of 2019	$ 19,389
2020	33,597
2021	30,914
2022	28,012
2023	26,460
2024	21,265
Thereafter	100,120
Total lease payments	259,757
Less imputed interest	(99,689)
Total	160,068
Finance Leases
Remainder of 2019	118
2020	86
2021	33
2022	31
2023	31
2024	8
Thereafter	0
Total lease payments	307
Less imputed interest	(31)
Total	$ 276

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Lease commitments, 2019	$ 35,973
Lease commitments, 2020	29,917
Lease commitments, 2021	27,592
Lease commitments, 2022	25,185
Lease commitments, 2023	23,589
Lease commitments, Thereafter	104,126
Lease commitments, Total	246,382
Sublease Rentals, 2019	69
Sublease Rentals, 2020	0
Sublease Rentals, 2021	0
Sublease Rentals, 2022	0
Sublease Rentals, 2023	0
Sublease Rentals, Thereafter	0
Sublease Rentals, Total	69
Net, 2019	35,904
Net, 2020	29,917
Net, 2021	27,592
Net, 2022	25,185
Net, 2023	23,589
Net, Thereafter	104,126
Net, Total	$ 246,313

Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Leaf tobacco	$ 47,108	$ 42,917
Other raw materials	3,782	3,750
Work-in-process	331	1,931
Finished goods	67,751	63,937
Inventories at current cost	118,972	112,535
LIFO adjustments	(22,038)	(21,538)
Inventory, net	$ 96,934	$ 90,997

Inventories (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
Inventories (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventory [Line Items]
LIFO adjustments	$ 22,038	$ 21,538
Capitalized MSA cost in finished goods inventory	17,815	16,001
Inventories
Inventory [Line Items]
Federal excise tax in inventory	26,437	26,419
Liggett \| Inventories
Inventory [Line Items]
Purchase commitments	25,795
Leaf tobacco
Inventory [Line Items]
LIFO adjustments	15,432	14,932
Other raw materials
Inventory [Line Items]
LIFO adjustments	219	219
Work-in-process
Inventory [Line Items]
LIFO adjustments	25	25
Finished goods
Inventory [Line Items]
LIFO adjustments	$ 6,362	$ 6,362

Investment Securities At Fair Value (Investment Securities At Fair Value Schedule) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Debt securities available for sale	$ 88,831	$ 84,367
Equity securities at fair value	46,269	47,202
Total investment securities at fair value	$ 135,100	$ 131,569

Investment Securities At Fair Value (Components of Investment Securities At Fair Value) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Debt securities available for sale	$ 88,831		$ 88,831		$ 84,367
Equity securities at fair value	46,269		46,269		47,202
Investment securities at fair value	135,100		135,100		131,569
Net gains recognized on equity securities	2,311	$ 3,236	7,051	$ 491
Net gains (losses) recognized on debt securities available for sale	6	(5)	42	(13)
Gross realized losses on other-than-temporary impairments	(2)	(225)	(5)	(811)
Net gains (losses) recognized on investment securities	2,315	3,006	7,088	(333)
Investment securities available for sale	135,100		135,100
Less: Net gains recognized on equity securities sold	278	53	410	183
Net unrealized gains recognized on equity securities still held at the reporting date	2,033	$ 3,183	6,641	$ 308
Marketable equity securities
Debt Securities, Available-for-sale [Line Items]
Investment securities available for sale	24,257		24,257		26,010
Mutual funds invested in fixed-income securities
Debt Securities, Available-for-sale [Line Items]
Investment securities available for sale	22,012		22,012		21,192
Marketable debt securities
Debt Securities, Available-for-sale [Line Items]
Debt securities available for sale	88,831		88,831		84,367
Cost	87,977		87,977		84,199
Gross Unrealized Gains	854		854		168
Gross Unrealized Losses	0		0		0
Total debt securities available for sale
Debt Securities, Available-for-sale [Line Items]
Debt securities available for sale	88,831		88,831		84,367
Cost	87,977		87,977		84,199
Gross Unrealized Gains	854		854		168
Gross Unrealized Losses	0		0		0
Quoted Prices in Active Markets for Identical Assets (Level 1)
Debt Securities, Available-for-sale [Line Items]
Investment securities available for sale	46,269		46,269
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Marketable equity securities
Debt Securities, Available-for-sale [Line Items]
Investment securities available for sale	24,257		24,257		26,010
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Mutual funds invested in fixed-income securities
Debt Securities, Available-for-sale [Line Items]
Investment securities available for sale	$ 22,012		$ 22,012		$ 21,192

Investment Securities At Fair Value (Maturity Dates of Marketable Debt Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Market Value	$ 88,831	$ 84,367
Under 1 Year	37,537
1 Year up to 5 Years	51,294
More than 5 Years	0
U.S. Government securities
Debt Securities, Available-for-sale [Line Items]
Market Value	19,535
Under 1 Year	7,797
1 Year up to 5 Years	11,738
More than 5 Years	0
Corporate securities
Debt Securities, Available-for-sale [Line Items]
Market Value	47,427
Under 1 Year	13,341
1 Year up to 5 Years	34,086
More than 5 Years	0
U.S. mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Market Value	8,623
Under 1 Year	4,026
1 Year up to 5 Years	4,597
More than 5 Years	0
Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Market Value	394
Under 1 Year	29
1 Year up to 5 Years	365
More than 5 Years	0
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Market Value	9,026
Under 1 Year	9,026
1 Year up to 5 Years	0
More than 5 Years	0
Index-linked U.S. bonds
Debt Securities, Available-for-sale [Line Items]
Market Value	2,664
Under 1 Year	2,664
1 Year up to 5 Years	0
More than 5 Years	0
Foreign fixed-income securities
Debt Securities, Available-for-sale [Line Items]
Market Value	1,162
Under 1 Year	654
1 Year up to 5 Years	508
More than 5 Years	$ 0

Investment Securities At Fair Value (Gross Realized Gains and Losses on Available-for-Sale Securities) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Gross realized gains on sales	$ 9	$ 2	$ 47	$ 2
Gross realized losses on sales	(3)	(7)	(5)	(15)
Net gains (losses) recognized on debt securities available for sale	6	(5)	42	(13)
Gross realized losses on other-than-temporary impairments	$ (2)	$ (225)	$ (5)	$ (811)

Investment Securities At Fair Value (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Sale of investment securities			$ 12,942,000	$ 2,647,000
Securities that qualify for NAV	$ 1,911,000	$ 1,505,000	5,470,000	3,236,000
Equity securities without readily determinable fair value	5,000,000		5,000,000		$ 5,000,000
Impairment and other adjustments	0	$ 0	0	0
Long-term investments
Debt Securities, Available-for-sale [Line Items]
Securities that qualify for NAV	$ 215,000		649,000
Corporate Securities and U.S. Government Securities
Debt Securities, Available-for-sale [Line Items]
Maturities of debt securities			$ 29,155,000	$ 11,526,000

Long-Term Investments (Investments) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($) investment	Dec. 31, 2018 USD ($)
Long-term Investments [Abstract]
Equity securities at fair value that qualify for the NAV practical expedient	$ 53,175	$ 54,628
Equity-method investments	10,639	11,631
Long-term investments	$ 63,814	$ 66,259
Number of investments redeemed that qualify for the NAV practical expedient \| investment	1
In-transit redemptions recorded from proceeds from investments redeemed that qualify for NAV practical expedient	$ 4,271

Long-Term Investments (Equity-Method Investments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Equity-method investments	$ 10,639		$ 10,639		$ 11,631
Proceeds from long-term equity method investment			855	$ 779
In-transit redemptions recorded from proceeds from investments redeemed that qualify for NAV practical expedient			4,271
Equity in (losses) earnings from investments	(1,685)	$ 4,813	(323)	$ 5,975
Indian Creek Investors LP (“Indian Creek”)
Schedule of Equity Method Investments [Line Items]
Equity-method investments	$ 719		$ 719		1,167
Equity-method ownership percentage	12.52%		12.52%
Boyar Value Fund (“Boyar”)
Schedule of Equity Method Investments [Line Items]
Equity-method investments	$ 9,444		$ 9,444		8,384
Equity-method ownership percentage	34.57%		34.57%
Quoted market value	$ 9,444		$ 9,444
Ladenburg Thalmann Financial Services Inc. (“LTS”)
Schedule of Equity Method Investments [Line Items]
Equity-method investments	$ 476		$ 476		2,080
Equity-method ownership percentage	10.29%		10.29%
Quoted market value	$ 52,106		$ 52,106
Castle Brands, Inc. (“Castle”)
Schedule of Equity Method Investments [Line Items]
Equity-method investments	$ 0		$ 0		$ 0
Equity-method ownership percentage	7.63%		7.63%
Quoted market value	$ 5,932		$ 5,932

New Valley LLC (Investment in Real Estate Ventures) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($) venture	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) venture	Jun. 30, 2018 USD ($)	Apr. 30, 2019 USD ($)	Feb. 28, 2019 USD ($)	Dec. 31, 2018 USD ($)
Schedule of Investments [Line Items]
Investments in real estate ventures	$ 144,766		$ 144,766				$ 141,105
Total contributions			21,908	$ 4,343
Distributions from real estate ventures			2,060	8,542
Distributions from investments in real estate ventures			23,200	27,134
Equity in earnings (losses) from real estate ventures	6,391	$ (2,112)	3,952	(8,672)
Condominium and Mixed Use Development \| All other U.S. areas
Schedule of Investments [Line Items]
Impairment of long-term investments		2,113		8,467
New Valley LLC
Schedule of Investments [Line Items]
Investments in real estate ventures	144,766		144,766				141,105
Total contributions			21,908	4,343
Distributions			25,260	35,676
Equity in earnings (losses) from real estate ventures	6,391	(2,112)	3,952	(8,672)
Total maximum exposure to loss	176,966		176,966
Interest costs capitalized	1,688	2,094	3,003	4,303
New Valley LLC \| Variable Interest Entity, Not Primary Beneficiary \| 352 6th Avenue LLC
Schedule of Investments [Line Items]
Range of ownership						37.00%
Investments in real estate ventures						$ 500
Total maximum exposure to loss	517		517
New Valley LLC \| Variable Interest Entity, Not Primary Beneficiary \| Meatpacking Plaza
Schedule of Investments [Line Items]
Range of ownership					17.00%
Investments in real estate ventures					$ 10,018
Total maximum exposure to loss	10,251		10,251
New Valley LLC \| Variable Interest Entity, Not Primary Beneficiary \| 9 DeKalb
Schedule of Investments [Line Items]
Range of ownership					5.50%
Investments in real estate ventures					$ 5,000
Total maximum exposure to loss	$ 5,116		$ 5,116
New Valley LLC \| Variable Interest Entity, Primary Beneficiary
Schedule of Investments [Line Items]
Number of real estate ventures \| venture	2		2
VIE's assets	$ 976		$ 976				1,387
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	$ 113,496		$ 113,496				96,399
Total contributions			21,537	533
Distributions			1,850	34,490
Equity in earnings (losses) from real estate ventures	(3,378)	(473)	(5,592)	(4,439)
Total maximum exposure to loss	130,918		130,918
New Valley LLC \| Condominium and Mixed Use Development \| New York City SMSA
Schedule of Investments [Line Items]
Investments in real estate ventures	84,593		84,593				65,007
Total contributions			21,537	533
Distributions			571	34,490
Equity in earnings (losses) from real estate ventures	(1,120)	(152)	(3,226)	(3,613)
Impairment of long-term investments	3,866		1,378
Total maximum exposure to loss	89,515		89,515
New Valley LLC \| Condominium and Mixed Use Development \| All other U.S. areas
Schedule of Investments [Line Items]
Investments in real estate ventures	28,903		28,903				$ 31,392
Distributions			1,279	0
Equity in earnings (losses) from real estate ventures	(2,258)	(321)	(2,366)	(826)
Impairment of long-term investments		2,700		10,174
Total maximum exposure to loss	$ 41,403		$ 41,403
New Valley LLC \| Condominium and Mixed Use Development \| All other U.S. areas \| Monad Terrace [Member]
Schedule of Investments [Line Items]
Range of ownership	17.90%		17.90%				18.00%
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]
Distributions			$ 3	201
Equity in earnings (losses) from real estate ventures	$ 3	(1,717)	3	(3,297)
New Valley LLC \| Apartment Buildings \| All other U.S. areas
Schedule of Investments [Line Items]
Distributions			3	201
Equity in earnings (losses) from real estate ventures	3	(1,717)	3	(3,297)
New Valley LLC \| Hotels
Schedule of Investments [Line Items]
Investments in real estate ventures	4,585		4,585				$ 18,116
Total contributions			172	167
Distributions			21,572	0
Equity in earnings (losses) from real estate ventures	9,064	(779)	7,870	(2,018)
Total maximum exposure to loss	4,585		4,585
New Valley LLC \| Hotels \| New York City SMSA
Schedule of Investments [Line Items]
Investments in real estate ventures	2,615		2,615				15,782
Total contributions			172	167
Distributions			21,572	0
Equity in earnings (losses) from real estate ventures	8,942	(636)	8,234	(1,450)
Total maximum exposure to loss	$ 2,615		$ 2,615
New Valley LLC \| Hotels \| New York City SMSA \| Minimum
Schedule of Investments [Line Items]
Range of ownership	5.20%		5.20%
New Valley LLC \| Hotels \| New York City SMSA \| Maximum
Schedule of Investments [Line Items]
Range of ownership	18.40%		18.40%
New Valley LLC \| Hotels \| International
Schedule of Investments [Line Items]
Range of ownership	49.00%		49.00%
Investments in real estate ventures	$ 1,970		$ 1,970				2,334
Equity in earnings (losses) from real estate ventures	122	(143)	(364)	(568)
Total maximum exposure to loss	1,970		1,970
New Valley LLC \| Commercial
Schedule of Investments [Line Items]
Investments in real estate ventures	9,475		9,475				8,920
Distributions			138	341
Equity in earnings (losses) from real estate ventures	463	792	634	755
Total maximum exposure to loss	$ 9,475		$ 9,475
New Valley LLC \| Commercial \| New York City SMSA
Schedule of Investments [Line Items]
Range of ownership	49.00%		49.00%
Investments in real estate ventures	$ 2,121		$ 2,121				1,867
Distributions			9	0
Equity in earnings (losses) from real estate ventures	384	(121)	263	(388)
Total maximum exposure to loss	$ 2,121		$ 2,121
New Valley LLC \| Commercial \| All other U.S. areas
Schedule of Investments [Line Items]
Range of ownership	1.60%		1.60%
Investments in real estate ventures	$ 7,354		$ 7,354				7,053
Distributions			129	341
Equity in earnings (losses) from real estate ventures	79	913	371	1,143
Total maximum exposure to loss	7,354		7,354
New Valley LLC \| Other
Schedule of Investments [Line Items]
Investments in real estate ventures	17,210		17,210				$ 17,670
Total contributions			199	3,643
Distributions			1,697	644
Equity in earnings (losses) from real estate ventures	239	$ 65	1,037	327
Total maximum exposure to loss	$ 31,988		$ 31,988
New Valley LLC \| Other \| Minimum
Schedule of Investments [Line Items]
Range of ownership	15.00%		15.00%
New Valley LLC \| Other \| Maximum
Schedule of Investments [Line Items]
Range of ownership	50.00%		50.00%
Douglas Elliman Realty, LLC
Schedule of Investments [Line Items]
Proceeds from commissions received			$ 11,223	$ 8,145

New Valley LLC (Combined Financial Statements for Unconsolidated Subsidiaries) (Details) - New Valley LLC - Condominium and Mixed Use Development - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement
Revenue	$ 2	$ 12	$ 3	$ 21
Other expenses	2,013	143,723	2,755	144,478
Loss from continuing operations	$ (2,011)	$ (143,711)	$ (2,752)	$ (144,457)

New Valley LLC (Investments in Real Estate, net) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2015	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Schedule of Investments [Line Items]
Real estate investment, net		$ 27,212		$ 27,212		$ 26,220
New Valley LLC
Schedule of Investments [Line Items]
Real estate investment, net		27,212		27,212		26,220
New Valley LLC \| Escena
Schedule of Investments [Line Items]
Land and Land Improvements		8,910		8,910		8,910
Building and building improvements		1,900		1,900		1,900
Other		1,608		1,608		2,162
Investments in real estate, gross		12,418		12,418		12,972
Less accumulated depreciation		(2,409)		(2,409)		(2,802)
Real estate investment, net		10,009		10,009		10,170
Operating loss		(354)	$ 290	332	$ (510)
New Valley LLC \| Sagaponack
Schedule of Investments [Line Items]
Real estate investment, net		$ 17,203		$ 17,203		$ 16,050
Payments to acquire real estate	$ 12,502

Notes Payable, Long-Term Debt and Other Obligations (Components of Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	$ 1,452,245	$ 1,666,445
Less: Debt issuance costs	(21,435)	(23,614)
Total notes payable, long-term debt and other obligations	1,430,810	1,642,831
Less: Current maturities	(250,659)	(256,134)
Amount due after one year	1,180,151	1,386,697
Fair value of derivatives embedded within convertible debt	0	24,789
Senior Notes \| 6.125% Senior Secured Notes due 2025
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	$ 850,000	850,000
Interest rate	6.125%
Senior Notes \| 10.5% Senior Notes due 2026
Debt Instrument [Line Items]
Interest rate	10.50%
Variable Interest Senior Convertible Debt \| 10.5% Senior Notes due 2026
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	$ 325,000	325,000
Variable Interest Senior Convertible Debt \| 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $0 and $3,359
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	0	226,641
Unamortized discount	$ 0	3,359
Interest rate	7.50%
Fair value of derivatives embedded within convertible debt	$ 0	6,635
Variable Interest Senior Convertible Debt \| 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $18,852 and $29,465
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	213,148	202,535
Unamortized discount	$ 18,852	29,465
Interest rate	5.50%
Fair value of derivatives embedded within convertible debt	$ 17,287	24,789
Line of Credit \| Liggett
Debt Instrument [Line Items]
Amount outstanding	33,288
Remaining borrowing capacity	21,800
Line of Credit \| Revolving credit facility \| Liggett
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	31,026	28,381
Line of Credit \| Term loan under credit facility \| Liggett
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	2,262	2,409
Equipment loans \| Liggett
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	545	1,039
Other
Debt Instrument [Line Items]
Notes payable, long-term debt and other obligations	$ 30,264	$ 30,440

Notes Payable, Long-Term Debt and Other Obligations (Senior Notes) (Details) - USD ($) $ in Thousands		1 Months Ended
	Nov. 02, 2018	Jan. 31, 2019	Jun. 30, 2019
Senior Notes \| 10.5% Senior Notes due 2026
Debt Instrument [Line Items]
Interest rate			10.50%
Period of redemption after closing	90 days
Variable Interest Senior Convertible Debt \| 7.5% Variable Interest Senior Convertible Notes due 2019
Debt Instrument [Line Items]
Face amount of debt		$ 230,000
Interest Expense, Debt		$ 8,102
Interest rate			7.50%

Notes Payable, Long-Term Debt and Other Obligations (Revolving Credit Facility and Term Loan Under Credit Facility - Liggett) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Debt Disclosure [Abstract]
Amortization of debt discount, net	$ 5,447	$ 20,386	$ 13,972	$ 38,579
Amortization of debt issuance costs	1,053	2,914	2,238	5,625
Non-cash Interest Expense	$ 6,500	$ 23,300	$ 16,210	$ 44,204

Notes Payable, Long-Term Debt and Other Obligations (Fair Value of Notes Payable and Long Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	$ 1,398,083	$ 1,565,459
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	1,452,245	1,666,445
Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	1,094,888	1,034,500
Senior Notes \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	1,175,000	1,175,000
Variable Interest Senior Convertible Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	239,090	468,704
Variable Interest Senior Convertible Debt \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	213,148	429,176
Liggett and other
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	64,105	62,255
Liggett and other \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable and long-term debt	$ 64,097	$ 62,269

Contingencies (Overview and Bonds) (Details) - Liggett - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Jun. 30, 2009
Loss Contingencies [Line Items]
Tobacco product liability legal expenses and costs	$ 3,737	$ 3,584
Engle Progeny Cases \| Florida
Loss Contingencies [Line Items]
Maximum bond required for judgments on appeal				$ 200,000
Bonds \| Santoro v. R.J. Reynolds
Loss Contingencies [Line Items]
Security posted for appeal of judgment			$ 535

Contingencies (Cautionary Statement About Engle Progeny Cases) (Details) $ in Thousands		1 Months Ended				3 Months Ended	6 Months Ended
	Nov. 21, 1996 USD ($)	Sep. 30, 2017 USD ($) case	Jun. 30, 2017 USD ($) case	Dec. 31, 2016 USD ($) case	Oct. 31, 2013 USD ($) case	Jun. 30, 2019 case	Jun. 30, 2019 USD ($) case
Loss Contingencies [Line Items]
Amount of litigation settlement awarded to other party \| $	$ 145,000,000
Liggett
Loss Contingencies [Line Items]
Amount of litigation settlement awarded to other party \| $	$ 790,000
Liggett \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases with verdicts						25	25
Cases with verdicts in favor of plaintiffs						16	16
Cases with verdicts in favor of defendants						9	9
Cases with verdicts in favor of plaintiffs and punitive damages awarded						5	5
Cases settled		20	9	124	4,900
Amount of litigation settlement awarded to other party \| $		$ 4,100	$ 1,400	$ 17,650	$ 110,000
Liggett and Vector Tobacco \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases settled						2	187
Amount of litigation settlement awarded to other party \| $							$ 7,700

Contingencies (Individual Actions) (Details)	Jun. 30, 2019 case
Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending	36
Liggett
Loss Contingencies [Line Items]
Cases pending	1
Liggett \| Individual Actions Cases \| Florida
Loss Contingencies [Line Items]
Cases pending	24
Liggett \| Individual Actions Cases \| Illinois
Loss Contingencies [Line Items]
Cases pending	5
Liggett \| Individual Actions Cases \| New York
Loss Contingencies [Line Items]
Cases pending	2
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 \| Ohio
Loss Contingencies [Line Items]
Cases pending	1

Contingencies (Engle Progeny Cases and Settlement) (Details) $ in Thousands		1 Months Ended					3 Months Ended			6 Months Ended
	Nov. 21, 1996 USD ($)	Sep. 30, 2017 USD ($) case	Jun. 30, 2017 USD ($) case	Dec. 31, 2016 USD ($) case	Feb. 28, 2015	Oct. 31, 2013 USD ($) case	Jun. 30, 2019 USD ($) case	Jun. 30, 2018 USD ($)	Dec. 31, 2016 USD ($)	Jun. 30, 2019 USD ($) case	Jun. 30, 2018 USD ($)
Loss Contingencies [Line Items]
Amount of litigation settlement awarded to other party	$ 145,000,000
Litigation settlement and judgment expense							$ 655	$ 525		$ 655	$ (1,944)
Liggett
Loss Contingencies [Line Items]
Amount of litigation settlement awarded to other party	$ 790,000
Cases pending \| case							1			1
Liggett \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases settled \| case		20	9	124		4,900
Amount of litigation settlement awarded to other party		$ 4,100	$ 1,400	$ 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									$ 17,650
Litigation settlement amount paid in installment payments						48,000
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 \| Santoro v. R.J. Reynolds
Loss Contingencies [Line Items]
Payments for legal settlements										$ 160
Liggett and Vector Tobacco \| Engle Progeny Cases
Loss Contingencies [Line Items]
Cases settled \| case							2			187
Amount of litigation settlement awarded to other party										$ 7,700
Cases pending \| case							62			62

Contingencies (Appeals of Engle Progeny Judgments, Maryland and Only Liggett Cases) (Details)	Jun. 30, 2019 case
Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending	36
Liggett
Loss Contingencies [Line Items]
Cases pending	1
Maryland \| Liggett \| Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending	16

Contingencies (Class Actions, Health Care Cost Recovery Actions, and Upcoming Trials) (Details)	1 Months Ended
	Oct. 31, 2013 case	May 31, 2013 case	Jun. 30, 2019 defendant case	Dec. 31, 2001 case
Parsons v. AC & S Inc.
Loss Contingencies [Line Items]
Number of defendants in bankruptcy \| defendant			3
Tobacco Litigation Personal Injury Cases \| West Virginia
Loss Contingencies [Line Items]
Cases pending				750
Claims dismissed		1
Number of plaintiffs	30
Individual Actions Cases
Loss Contingencies [Line Items]
Cases pending			36
Pending claims scheduled for trial			1
Engle Progeny Cases
Loss Contingencies [Line Items]
Pending claims scheduled for trial			2
Liggett
Loss Contingencies [Line Items]
Cases pending			1
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 \| Individual Actions Cases \| West Virginia
Loss Contingencies [Line Items]
Cases pending			2

Contingencies (MSA and Other State Settlement Agreements) (Details)		6 Months Ended	25 Months Ended
	Dec. 28, 2017 USD ($)	Jun. 30, 2019 USD ($) 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]
Estimated litigation liability		$ 166,000,000
Payments for legal settlements	$ 132,500,000
Product Concentration Risk \| Sales Revenue \| Liggett and Vector Tobacco
Loss Contingencies [Line Items]
Concentration risk percentage		4.00%

Contingencies (Certain MSA Disputes) (Details) $ in Thousands	6 Months Ended	25 Months Ended	60 Months Ended
	Jun. 30, 2019 USD ($) state	Mar. 31, 1998 state	Dec. 31, 2017 USD ($)
2003 NPM Adjustment
Loss Contingencies [Line Items]
Number of states agreed to single arbitration	48
Aggregate number of settling states	49
Number of settling states with diligence not contested	37
Combined allocable share, percentage	75.00%
Liggett and Vector Tobacco \| 2004-2010 NPM Adjustment
Loss Contingencies [Line Items]
Amounts accrued \| $	$ 13,400
Liggett and Vector Tobacco \| Cost of Sales \| Health Care Cost Recovery Actions, NPM Adjustment
Loss Contingencies [Line Items]
Settlement adjustment credit \| $			$ 32,840
Liggett
Loss Contingencies [Line Items]
Number of states with settled litigation		45
Liggett \| 2011-2015 NPM Adjustment
Loss Contingencies [Line Items]
Amounts accrued \| $	$ 36,300

Contingencies (Other State Settlements) (Details)			12 Months Ended		25 Months Ended
Contingencies (Other State Settlements) (Details)	Jan. 12, 2016 USD ($)	Nov. 21, 1996 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2003 USD ($)	Mar. 31, 1998 USD ($) state	Mar. 21, 2019 USD ($)
Loss Contingencies [Line Items]
Amount of litigation settlement awarded to other party		$ 145,000,000,000
Health Care Cost Recovery Actions
Loss Contingencies [Line Items]
Annual payment requirement					$ 9,000,000,000
Liggett
Loss Contingencies [Line Items]
Amount of litigation settlement awarded to other party		$ 790,000,000
Liggett \| Health Care Cost Recovery Actions
Loss Contingencies [Line Items]
Number of states not included in settlement agreement \| state					4
Minnesota \| Liggett \| Health Care Cost Recovery Actions
Loss Contingencies [Line Items]
Annual payment requirement				$ 100,000
Florida \| Liggett \| Health Care Cost Recovery Actions
Loss Contingencies [Line Items]
Annual payment requirement			$ 250,000
Amount of litigation settlement awarded to other party			$ 1,200,000
Years annual payments required			21 years
Years annual payments required that are subject to inflation adjustment			12 years
Mississippi \| Liggett \| Health Care Cost Recovery Actions
Loss Contingencies [Line Items]
Damages sought	$ 27,000,000
Proceeds that should not be included in income						$ 294,000,000
Percent of income entitled						0.50%

Contingencies (Activity in Accruals for MSA and Tobacco Litigation Schedule) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Loss Contingency Accrual [Roll Forward]
Current liabilities, beginning balance	$ 36,871	$ 12,645
Expenses	80,783	80,264
NPM Settlement adjustment		(595)
Change in MSA obligations capitalized as inventory	1,813	(275)
Payments	(32,314)	(9,713)
Interest on withholding	95	19
Current liabilities, ending balance	89,694	81,916
Noncurrent liabilities, beginning balance	38,177	41,319
Expenses	0	0
NPM Settlement adjustment		(5,703)
Payments	0	0
Reclassification to/(from) non-current liabilities	2,446	(429)
Interest on withholding	1,076	1,048
Noncurrent liabilities, ending balance	36,807	37,093
Payments due under Master Settlement Agreement
Loss Contingency Accrual [Roll Forward]
Current liabilities, beginning balance	36,561	12,385
Expenses	80,128	79,739
NPM Settlement adjustment		(595)
Change in MSA obligations capitalized as inventory	1,813	(275)
Payments	(31,959)	(9,463)
Interest on withholding	0	0
Current liabilities, ending balance	85,651	81,144
Noncurrent liabilities, beginning balance	16,383	21,479
Expenses	0	0
NPM Settlement adjustment		(5,703)
Payments	0	0
Reclassification to/(from) non-current liabilities	(892)	(647)
Interest on withholding	0	0
Noncurrent liabilities, ending balance	17,275	16,423
Litigation Accruals
Loss Contingency Accrual [Roll Forward]
Current liabilities, beginning balance	310	260
Expenses	655	525
NPM Settlement adjustment		0
Change in MSA obligations capitalized as inventory	0	0
Payments	(355)	(250)
Interest on withholding	95	19
Current liabilities, ending balance	4,043	772
Noncurrent liabilities, beginning balance	21,794	19,840
Expenses	0	0
NPM Settlement adjustment		0
Payments	0	0
Reclassification to/(from) non-current liabilities	3,338	218
Interest on withholding	1,076	1,048
Noncurrent liabilities, ending balance	$ 19,532	$ 20,670

Contingencies (Other Matters) (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Liggett and Vector Tobacco \| Bonds \| Maximum
Loss Contingencies [Line Items]
Estimate of possible loss	$ 500

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost — benefits earned during the period	$ 134	$ 147	$ 267	$ 294
Interest cost on projected benefit obligation	1,215	1,124	2,430	2,246
Expected return on assets	(1,219)	(1,393)	(2,437)	(2,786)
Amortization of prior service cost	0	0	0	0
Amortization of net loss (gain)	501	451	1,002	903
Net expense	631	329	1,262	657
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost — benefits earned during the period	1	0	1	1
Interest cost on projected benefit obligation	87	82	173	164
Expected return on assets	0	0	0	0
Amortization of prior service cost	1	0	2	0
Amortization of net loss (gain)	(10)	(10)	(54)	(20)
Net expense	$ 79	$ 72	$ 122	$ 145

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income before provision for income taxes	$ 56,766	$ 31,756	$ 78,548	$ 37,368
Income tax expense using estimated annual effective income tax rate	17,566	14,209	24,319	16,720
Changes in effective tax rates	(110)	455	0	0
Change in estimate for the impact of Tax Cuts and Jobs Act of 2017	0	(1,809)	0	(1,809)
Impact of discrete items, net	3	(95)	(111)	(203)
Income tax expense	$ 17,459	$ 12,760	$ 24,208	$ 14,708

Investments and Fair Value Measurements (Quantitative Information about Level 3 Fair Value Measurements) (Details) $ in Thousands	Jun. 30, 2019 USD ($) $ / shares	Dec. 31, 2018 USD ($) $ / shares
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt	$ 0	$ 24,789
Fair value of contingent liability	6,195	6,304
Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of contingent liability	6,195	6,304
Estimated fair value of the Douglas Elliman reporting unit	320,000	320,000
Discounted cash flow \| Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt	$ 17,287	$ 31,424
Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Assumed annual stock dividend
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt, measurement input	0.05	0.05
Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Assumed annual cash dividend
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt, measurement input \| $ / shares	1.60	1.60
Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Stock price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt, measurement input \| $ / shares	9.75	9.73
Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Convertible trading price (as a percentage of par value)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt, measurement input	1.0306	1.0031
Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt, measurement input	0.3311	0.2039
Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Implied credit spread
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt, measurement input	0.0625	0.085
Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Implied credit spread \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt, measurement input	0.0525	0.080
Discounted cash flow \| Significant Unobservable Inputs (Level 3) \| Implied credit spread \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of derivatives embedded within convertible debt, measurement input	0.0725	0.090
Monte Carlo Simulation Model [Member] \| Significant Unobservable Inputs (Level 3) \| Risk-free rate for a 4-year term
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of contingent liability, measurement input	0.0171	0.0245
Monte Carlo Simulation Model [Member] \| Significant Unobservable Inputs (Level 3) \| Leverage-adjusted equity volatility of peer firms
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of contingent liability, measurement input	0.2624	0.3022

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

3 Months Ended

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2019

Jun. 30, 2018

$ 538,432

$ 481,488

$ 959,356

$ 910,454

Equity in earnings (losses) from real estate ventures

76,244

61,861

118,834

109,945

6,391

(2,112)

3,952

(8,672)

4,224

4,749

8,932

9,336

Litigation judgment expense

6,320

8,616

655

525

655

(1,944)

Corporate and Other

Equity in earnings (losses) from real estate ventures

(6,860)

(6,521)

(14,005)

(13,088)

250

256

500

517

Tobacco

Litigation settlement income

^[1]

294,501

274,833

551,257

541,949

(2,808)

(6,298)

Litigation judgment expense

525

Tobacco | Operating Segments

274,833

541,949

Equity in earnings (losses) from real estate ventures

68,651

62,515

128,795

125,926

1,950

2,075

3,907

4,112

2,753

2,072

Real estate

Litigation settlement income

243,931

206,655

408,099

368,505

(2,469)

Litigation judgment expense

655

Real estate | Operating Segments

243,931

206,655

408,099

368,505

Equity in earnings (losses) from real estate ventures

14,453

5,867

4,044

(2,893)

6,391

(2,112)

3,952

(8,672)

$ 2,024

$ 2,418

4,525

4,707