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Vector Group Ltd.

Condensed Consolidating Financial Statements

June 30, 2024

(in thousands of dollars)

Presented herein are Condensed Consolidating Balance Sheet as of June 30, 2024 and the related Condensed Consolidating Statements of Operations for the six months ended June 30, 2024 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, 2024
															Subsidiary												Consolidated
			Parent/						Subsidiary						Non-						Consolidating						Vector Group
			Issuer						Guarantors						Guarantors						Adjustments						Ltd.
ASSETS:
Current assets:
Cash and cash equivalents			$	240,893					$	149,162					$	703					$	—					$	390,758
Investment securities at fair value			140,983						—						—						—						140,983
Accounts receivable - trade, net			—						29,637						—						—						29,637
Intercompany receivables			2,980						—						—						(2,980)						—
Inventories			—						105,132						—						—						105,132
Income taxes receivable, net			14,484						—						20,686						(34,587)						583
Other current assets			1,635						12,197						262						—						14,094
Total current assets			400,975						296,128						21,651						(37,567)						681,187
Property, plant and equipment, net			632						35,158						7,819						—						43,609
Long-term investment securities			46,789						—						—						—						46,789
Investments in real estate ventures			—						—						116,849						—						116,849
Operating lease right-of-use assets			6,484						4,893						—						—						11,377
Investments in consolidated subsidiaries			297,720						—						—						(297,720)						—
Intangible assets			—						107,511						—						—						107,511
Other assets			14,286						64,611						7,802						—						86,699
Total assets			$	766,886					$	508,301					$	154,121					$	(335,287)					$	1,094,021
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Intercompany payables			$	—					$	581					$	2,399					$	(2,980)					$	—
Income taxes payable, net			—						34,587						—						(34,587)						—
Current payments due under the Master Settlement Agreement			—						131,200						—						—						131,200
Current operating lease liability			1,742						2,444						—						—						4,186
Other current liabilities			37,658						106,219						536						—						144,413
Total current liabilities			39,400						275,031						2,935						(37,567)						279,799
Notes payable, long-term debt and other obligations, less current portion			1,374,266						—						—						—						1,374,266
Non-current employee benefits			62,824						5,939						—						—						68,763
Deferred income taxes, net			(4,947)						27,921						30,923						—						53,897
Non-current operating lease liability			5,046						2,716						—						—						7,762
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement			3,643						18,916						321						—						22,880
Total liabilities			1,480,232						330,523						34,179						(37,567)						1,807,367
Commitments and contingencies
Total stockholders' (deficiency) equity			(713,346)						177,778						119,942						(297,720)						(713,346)
Total liabilities and stockholders' deficiency			$	766,886					$	508,301					$	154,121					$	(335,287)					$	1,094,021

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CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

									Six Months Ended June 30, 2024
															Subsidiary												Consolidated
			Parent/						Subsidiary						Non-						Consolidating						Vector Group
			Issuer						Guarantors						Guarantors						Adjustments						Ltd.
Revenues			$	—					$	696,481					$	515					$	(515)					$	696,481
Expenses:
Cost of sales			—						462,495						—						—						462,495
Operating, selling, administrative and general expenses			17,482						40,475						713						(515)						58,155
Litigation settlement and judgment expense			—						264						—						—						264
Management fee expense			—						7,326						—						(7,326)						—
Operating (loss) income			(17,482)						185,921						(198)						7,326						175,567
Other income (expenses):
Interest expense			(52,419)						(1,613)						—						—						(54,032)
Equity in losses from real estate ventures			—						—						(11,934)						—						(11,934)
Equity in earnings from investments			1,497						—						—						—						1,497
Equity in earnings in consolidated subsidiaries			126,609						—						—						(126,609)						—
Management fee income			7,326						—						—						(7,326)						—
Other, net			8,558						3,484						(72)						—						11,970
Income (loss) before provision for income taxes			74,089						187,792						(12,204)						(126,609)						123,068
Income tax benefit (expense)			14,889						(52,019)						3,040						—						(34,090)
Net income			$	88,978					$	135,773					$	(9,164)					$	(126,609)					$	88,978
Comprehensive income (loss)			$	89,092					$	135,839					$	(9,164)					$	(126,675)					$	89,092