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Vector Group Ltd.

Condensed Consolidating Financial Statements

June 30, 2023

(in thousands of dollars)

Presented herein are Condensed Consolidating Balance Sheet as of June 30, 2023 and the related Condensed Consolidating Statements of Operations for the six months ended June 30, 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

			June 30, 2023
															Subsidiary												Consolidated
			Parent/						Subsidiary						Non-						Consolidating						Vector Group
			Issuer						Guarantors						Guarantors						Adjustments						Ltd.
ASSETS:
Current assets:
Cash and cash equivalents			$	226,961					$	102,904					$	458					$	—					$	330,323
Investment securities at fair value			116,131						—						—						—						116,131
Accounts receivable - trade, net			—						34,496						—						—						34,496
Intercompany receivables			2,208						—						—						(2,208)						—
Inventories			—						98,716						—						—						98,716
Income taxes receivable, net			23,360						—						13,080						(25,505)						10,935
Other current assets			3,181						34,267						10						—						37,458
Total current assets			371,841						270,383						13,548						(27,713)						628,059
Property, plant and equipment, net			574						34,471						9,004						—						44,049
Long-term investment securities			44,752						—						—						—						44,752
Investments in real estate ventures			—						—						121,417						—						121,417
Operating lease right-of-use assets			4,647						4,154						—						—						8,801
Investments in consolidated subsidiaries			258,005						—						—						(258,005)						—
Intangible assets			—						107,511						—						—						107,511
Other assets			14,187						56,445						8,002						—						78,634
Total assets			$	694,006					$	472,964					$	151,971					$	(285,718)					$	1,033,223
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt			$	—					$	27					$	—					$	—					$	27
Intercompany payables			—						62						2,146						(2,208)						—
Income taxes payable, net			—						25,505						—						(25,505)						—
Current payments due under the Master Settlement Agreement			—						135,651						—						—						135,651
Current operating lease liability			1,889						1,958						—						—						3,847
Other current liabilities			36,699						118,499						540						—						155,738
Total current liabilities			38,588						281,702						2,686						(27,713)						295,263
Notes payable, long-term debt and other obligations, less current portion			1,384,323						—						—						—						1,384,323
Non-current employee benefits			58,567						6,177						—						—						64,744
Deferred income taxes, net			2,230						25,197						25,885						—						53,312
Non-current operating lease liability			3,468						2,568						—						—						6,036
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement			3,955						22,370						345						—						26,670
Total liabilities			1,491,131						338,014						28,916						(27,713)						1,830,348
Commitments and contingencies
Total stockholders' (deficiency) equity			(797,125)						134,950						123,055						(258,005)						(797,125)
Total liabilities and stockholders' deficiency			$	694,006					$	472,964					$	151,971					$	(285,718)					$	1,033,223

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CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

									Six Months Ended June 30, 2023
															Subsidiary												Consolidated
			Parent/						Subsidiary						Non-						Consolidating						Vector Group
			Issuer						Guarantors						Guarantors						Adjustments						Ltd.
Revenues			$	—					$	699,807					$	515					$	(515)					$	699,807
Expenses:
Cost of sales			—						481,270						—						—						481,270
Operating, selling, administrative and general expenses			14,863						39,414						460						(515)						54,222
Litigation settlement and judgment expense			—						18,375						—						—						18,375
Management fee expense			—						7,031						—						(7,031)						—
Operating (loss) income			(14,863)						153,717						55						7,031						145,940
Other income (expenses):
Interest expense			(53,538)						(1,060)						—						—						(54,598)
Loss on extinguishment of debt			(181)						—						—						—						(181)
Equity in earnings from real estate ventures			—						—						1,061						—						1,061
Equity in earnings from investments			800						—						—						—						800
Equity in earnings in consolidated subsidiaries			117,276						—						—						(117,276)						—
Management fee income			7,031						—						—						(7,031)						—
Other, net			5,748						2,702						(39)						—						8,411
Income before provision for income taxes			62,273						155,359						1,077						(117,276)						101,433
Income tax benefit (expense)			10,557						(38,841)						(319)						—						(28,603)
Net income			$	72,830					$	116,518					$	758					$	(117,276)					$	72,830
Comprehensive income			$	73,200					$	116,664					$	758					$	(117,422)					$	73,200