Please wait

.2

Vector Group Ltd.

Condensed Consolidating Financial Statements

December 31, 2023

(in thousands of dollars)

Presented herein are Condensed Consolidating Balance Sheet as of December 31, 2023 and the related Condensed Consolidating Statements of Operations for the year ended December 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

			December 31, 2023
															Subsidiary												Consolidated
			Parent/						Subsidiary						Non-						Consolidating						Vector Group
			Issuer						Guarantors						Guarantors						Adjustments						Ltd.
ASSETS:
Current assets:
Cash and cash equivalents			$	251,720					$	16,753					$	127					$	—					$	268,600
Investment securities at fair value			110,935						—						—						—						110,935
Accounts receivable - trade, net			—						26,442						—						—						26,442
Intercompany receivables			2,854						—						—						(2,854)						—
Inventories			—						91,959						—						—						91,959
Income taxes receivable, net			15,215						—						16,901						(32,116)						—
Other current assets			996						10,289						380						—						11,665
Total current assets			381,720						145,443						17,408						(34,970)						509,601
Property, plant and equipment, net			603						34,365						8,412						—						43,380
Long-term investment securities			46,760						—						—						—						46,760
Investments in real estate ventures			—						—						131,497						—						131,497
Operating lease right-of-use assets			7,071						3,946						—						—						11,017
Investments in consolidated subsidiaries			290,780						—						—						(290,780)						—
Intangible assets			—						107,511						—						—						107,511
Other assets			14,022						62,506						7,801						—						84,329
Total assets			$	740,956					$	353,771					$	165,118					$	(325,750)					$	934,095
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt			$	—					$	8					$	—					$	—					$	8
Intercompany payables			—						606						2,248						(2,854)						—
Income taxes payable, net			—						32,833						—						(32,116)						717
Current payments due under the Master Settlement Agreement			—						8,812						—						—						8,812
Current operating lease liability			1,694						2,012						—						—						3,706
Other current liabilities			39,590						91,545						545						—						131,680
Total current liabilities			41,284						135,816						2,793						(34,970)						144,923
Notes payable, long-term debt and other obligations, less current portion			1,371,811						—						—						—						1,371,811
Non-current employee benefits			61,258						5,853						—						—						67,111
Deferred income taxes, net			(495)						28,292						30,173						—						57,970
Non-current operating lease liability			5,917						2,260						—						—						8,177
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement			2,995						22,634						288						—						25,917
Total liabilities			1,482,770						194,855						33,254						(34,970)						1,675,909
Commitments and contingencies
Total stockholders' (deficiency) equity			(741,814)						158,916						131,864						(290,780)						(741,814)
Total liabilities and stockholders' deficiency			$	740,956					$	353,771					$	165,118					$	(325,750)					$	934,095

---

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

									Year Ended December 31, 2023
															Subsidiary												Consolidated
			Parent/						Subsidiary						Non-						Consolidating						Vector Group
			Issuer						Guarantors						Guarantors						Adjustments						Ltd.
Revenues			$	—					$	1,424,268					$	1,031					$	(1,031)					$	1,424,268
Expenses:
Cost of sales			—						965,348						—						—						965,348
Operating, selling, administrative and general expenses			32,748						79,407						962						(1,031)						112,086
Litigation settlement and judgment expense			—						18,799						—						—						18,799
Management fee expense			—						14,063						—						(14,063)						—
Operating (loss) income			(32,748)						346,651						69						14,063						328,035
Other income (expenses):
Interest expense			(106,672)						(1,945)						—						—						(108,617)
Loss on extinguishment of debt			(549)						—						—						—						(549)
Equity in earnings from real estate ventures			—						—						2,202						—						2,202
Equity in earnings from investments			1,262						—						—						—						1,262
Equity in earnings in consolidated subsidiaries			264,841						—						—						(264,841)						—
Management fee income			14,063						—						—						(14,063)						—
Other, net			15,580						10,177						362						—						26,119
Income before provision for income taxes			155,777						354,883						2,633						(264,841)						248,452
Income tax benefit (expense)			27,749						(91,887)						(788)						—						(64,926)
Net income			$	183,526					$	262,996					$	1,845					$	(264,841)					$	183,526
Comprehensive income			$	186,687					$	266,497					$	1,845					$	(268,342)					$	186,687