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Vector Group Ltd.

Condensed Consolidating Financial Statements

March 31, 2023

(in thousands of dollars)

Presented herein are Condensed Consolidating Balance Sheet as of March 31, 2023 and the related Condensed Consolidating Statements of Operations for the three months ended March 31, 2023 of Vector Group Ltd. (Parent/Issuer), the guarantor subsidiaries (Subsidiary Guarantors) and the subsidiaries that are not guarantors (Subsidiary Non-Guarantors).

CONDENSED CONSOLIDATING BALANCE SHEETS

			March 31, 2023
															Subsidiary												Consolidated
			Parent/						Subsidiary						Non-						Consolidating						Vector Group
			Issuer						Guarantors						Guarantors						Adjustments						Ltd.
ASSETS:
Current assets:
Cash and cash equivalents			$	229,415					$	52,105					$	348					$	—					$	281,868
Investment securities at fair value			107,035						—						—						—						107,035
Accounts receivable - trade, net			—						30,500						—						—						30,500
Intercompany receivables			2,392						—						—						(2,392)						—
Inventories			—						100,675						—						—						100,675
Income taxes receivable, net			17,309						—						13,605						(30,914)						—
Other current assets			975						9,421						—						—						10,396
Total current assets			357,126						192,701						13,953						(33,306)						530,474
Property, plant and equipment, net			377						34,247						9,300						—						43,924
Long-term investment securities			45,059						—						—						—						45,059
Investments in real estate ventures			—						—						123,355						—						123,355
Operating lease right-of-use assets			5,009						4,055						—						—						9,064
Investments in consolidated subsidiaries			262,495						—						—						(262,495)						—
Deferred income taxes, net			12						—						—						(12)						—
Intangible assets			—						107,511						—						—						107,511
Other assets			13,502						80,047						3,002						—						96,551
Total assets			$	683,580					$	418,561					$	149,610					$	(295,813)					$	955,938
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt			$	—					$	30					$	—					$	—					$	30
Intercompany payables			—						269						2,123						(2,392)						—
Income taxes payable, net			—						33,719						—						(30,914)						2,805
Current payments due under the Master Settlement Agreement			—						83,695						—						—						83,695
Current operating lease liability			1,836						1,830						—						—						3,666
Other current liabilities			37,191						100,989						877						—						139,057
Total current liabilities			39,027						220,532						3,000						(33,306)						229,253
Notes payable, long-term debt and other obligations, less current portion			1,384,834						—						—						—						1,384,834
Non-current employee benefits			57,843						6,137						—						—						63,980
Deferred income taxes, net			—						25,397						25,613						(12)						50,998
Non-current operating lease liability			3,961						2,619						—						—						6,580
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement			3,687						22,023						355						—						26,065
Total liabilities			1,489,352						276,708						28,968						(33,318)						1,761,710
Commitments and contingencies
Total stockholders' (deficiency) equity			(805,772)						141,853						120,642						(262,495)						(805,772)
Total liabilities and stockholders' deficiency			$	683,580					$	418,561					$	149,610					$	(295,813)					$	955,938

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CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

									Three Months Ended March 31, 2023
															Subsidiary												Consolidated
			Parent/						Subsidiary						Non-						Consolidating						Vector Group
			Issuer						Guarantors						Guarantors						Adjustments						Ltd.
Revenues			$	—					$	334,145					$	258					$	(258)					$	334,145
Expenses:
Cost of sales			—						232,286						—						—						232,286
Operating, selling, administrative and general expenses			7,790						19,475						285						(258)						27,292
Litigation settlement and judgment expense			—						270						—						—						270
Management fee expense			—						3,516						—						(3,516)						—
Operating (loss) income			(7,790)						78,598						(27)						3,516						74,297
Other income (expenses):
Interest expense			(26,864)						(610)						—						—						(27,474)
Gain on extinguishment of debt			(141)						—						—						—						(141)
Equity in losses from real estate ventures			—						—						(1,893)						—						(1,893)
Equity in losses from investments			(159)						—						—						—						(159)
Equity in earnings in consolidated subsidiaries			57,889						—						—						(57,889)						—
Management fee income			3,516						—						—						(3,516)						—
Other, net			2,499						1,125						(4)						—						3,620
Income (loss) before provision for income taxes			28,950						79,113						(1,924)						(57,889)						48,250
Income tax benefit (expense)			5,791						(19,778)						478						—						(13,509)
Net income			$	34,741					$	59,335					$	(1,446)					$	(57,889)					$	34,741
Comprehensive income (loss)			$	34,950					$	59,408					$	(1,446)					$	(57,962)					$	34,950