Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 30, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'VECTOR GROUP LTD | ' |
Entity Central Index Key | '0000059440 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 100,437,406 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $506,423 | $234,466 |
Investment securities available for sale | 237,767 | 172,534 |
Accounts receivable - trade, net | 15,753 | 12,159 |
Inventories | 108,257 | 93,496 |
Deferred income taxes | 28,264 | 50,479 |
Income tax receivable, net | 12,769 | 0 |
Restricted assets | 2,555 | 1,785 |
Other current assets | 28,532 | 23,392 |
Total current assets | 940,320 | 588,311 |
Property, plant and equipment, net | 80,332 | 79,258 |
Real estate held for sale, net | 10,669 | 20,911 |
Long-term investments accounted for at cost | 27,239 | 20,788 |
Long-term investments accounted for under the equity method | 17,842 | 8,595 |
Investments in non-consolidated real estate businesses | 133,629 | 128,202 |
Restricted assets | 11,581 | 11,981 |
Deferred income taxes | 64,712 | 51,474 |
Intangible assets, net | 8,755 | 11,919 |
Goodwill | 72,976 | 71,681 |
Trademarks | 80,005 | 80,000 |
Intangible asset associated with benefit under the Master Settlement Agreement | 107,511 | 107,511 |
Prepaid pension costs | 27,663 | 26,080 |
Other assets | 59,428 | 53,553 |
Total assets | 1,642,662 | 1,260,264 |
Current liabilities: | ' | ' |
Current portion of notes payable and long-term debt | 141,808 | 151,577 |
Current portion of fair value of derivatives embedded within convertible debt | 7,768 | 19,128 |
Current payments due under the Master Settlement Agreement | 62,009 | 25,348 |
Current portion of employee benefits | 939 | 939 |
Accounts payable | 10,180 | 10,260 |
Accrued promotional expenses | 20,040 | 18,655 |
Income taxes payable, net | 3,156 | 6,423 |
Accrued excise and payroll taxes payable, net | 16,809 | 11,621 |
Litigation accruals | 4,536 | 59,310 |
Deferred income taxes | 51,433 | 45,734 |
Accrued interest | 29,926 | 21,968 |
Other current liabilities | 31,708 | 34,147 |
Total current liabilities | 380,312 | 405,110 |
Notes payable, long-term debt and other obligations, less current portion | 853,669 | 540,766 |
Fair value of derivatives embedded within convertible debt | 183,786 | 92,934 |
Non-current employee benefits | 48,564 | 47,917 |
Deferred income taxes | 153,481 | 137,650 |
Payments due under the Master Settlement Agreement | 25,809 | 27,571 |
Litigation accruals | 24,376 | 27,058 |
Other liabilities | 3,778 | 2,867 |
Total liabilities | 1,673,775 | 1,281,873 |
Commitments and contingencies | ' | ' |
Stockholders' deficiency: | ' | ' |
Preferred stock, par value $1.00 per share, 10,000,000 shares authorized | 0 | 0 |
Common stock, par value $0.10 per share, 250,000,000 and 150,000,000 shares authorized, 104,385,261 and 101,430,853 shares issued and 100,437,406 and 97,482,998 shares outstanding | 10,043 | 9,748 |
Additional paid-in capital | 0 | 0 |
Accumulated deficit | -134,385 | -114,787 |
Accumulated other comprehensive income | 29,679 | 22,860 |
Less: 3,947,855 and 3,947,855 shares of common stock in treasury, at cost | -12,857 | -12,857 |
Total Vector Group Ltd. stockholders' deficiency | -107,520 | -95,036 |
Non-controlling interest | 76,407 | 73,427 |
Total stockholders' deficiency | -31,113 | -21,609 |
Total liabilities and stockholders' deficiency | $1,642,662 | $1,260,264 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Stockholders' deficiency: | ' | ' |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, par value (in shares) | $0.10 | $0.10 |
Common stock, shares authorized (in shares) | 250,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 104,385,261 | 101,430,853 |
Common stock, shares outstanding (in shares) | 100,437,406 | 97,482,998 |
Common stock in treasury, shares (in shares) | 3,947,855 | 3,947,855 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Revenues: | ' | ' | ' | ' | ||||
Tobacco | $250,556 | [1] | $249,120 | [1] | $483,948 | [1] | $489,522 | [1] |
Real estate | 153,488 | 7,106 | 261,532 | 12,873 | ||||
E-Cigarettes | 2,569 | 0 | 8,369 | 0 | ||||
Total revenues | 406,613 | 256,226 | 753,849 | 502,395 | ||||
Cost of sales: | ' | ' | ' | ' | ||||
Tobacco | 179,773 | [1] | 180,430 | [1] | 347,939 | [1] | 353,386 | [1] |
Real estate | 97,763 | 6,015 | 165,087 | 10,236 | ||||
E-Cigarettes | 1,746 | 0 | 5,293 | 0 | ||||
Total cost of sales | 279,282 | 186,445 | 518,319 | 363,622 | ||||
Operating, selling, administrative and general expenses | 67,023 | 25,541 | 132,500 | 51,437 | ||||
Operating income | 60,308 | 44,240 | 103,030 | 87,336 | ||||
Other income (expenses): | ' | ' | ' | ' | ||||
Interest expense | -44,183 | -32,086 | -79,636 | -65,462 | ||||
Loss on extinguishment of debt | 0 | 0 | 0 | -21,458 | ||||
Change in fair value of derivatives embedded within convertible debt | 1,970 | 2,450 | 320 | 5,499 | ||||
Acceleration of interest expense related to debt conversion | -439 | 0 | -4,118 | 0 | ||||
Equity (loss) income from non-consolidated real estate businesses | -1,808 | 6,804 | -256 | 7,285 | ||||
Equity (loss) income on long-term investments | -273 | 846 | 633 | 823 | ||||
(Loss) gain on sale of investment securities available for sale | -18 | -197 | -71 | 5,209 | ||||
Other, net | 3,575 | 1,471 | 5,701 | 2,280 | ||||
Income before provision for income taxes | 19,132 | 23,528 | 25,603 | 21,512 | ||||
Income tax expense | 6,101 | 10,017 | 9,043 | 9,682 | ||||
Net income | 13,031 | 13,511 | 16,560 | 11,830 | ||||
Net income attributed to non-controlling interest | -5,106 | 0 | -6,055 | 0 | ||||
Net income attributed to Vector Group Ltd. | $7,925 | $13,511 | $10,505 | $11,830 | ||||
Per basic common share: | ' | ' | ' | ' | ||||
Net income applicable to common shares attributed to Vector Group Ltd. | $0.08 | $0.14 | $0.11 | $0.13 | ||||
Per diluted common share: | ' | ' | ' | ' | ||||
Net income applicable to common shares attributed to Vector Group Ltd. | $0.08 | $0.14 | $0.11 | $0.13 | ||||
Cash distributions and dividends declared per share | $0.40 | $0.38 | $0.80 | $0.76 | ||||
[1] | Revenues and cost of sales include excise taxes of $109,695, $112,596, $212,108 and $221,507, respectively. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Tax portion of revenues and cost of goods sold | $109,695 | $112,596 | $212,108 | $221,507 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income | $13,031 | $13,511 | $16,560 | $11,830 |
Net unrealized (losses) gains on investment securities available for sale: | ' | ' | ' | ' |
Change in net unrealized (losses) gains | -2,886 | 2,866 | 3,108 | 16,904 |
Net unrealized losses (gains) reclassified into net income | 18 | 197 | 71 | -5,209 |
Net unrealized (losses) gains on investment securities available for sale | -2,868 | 3,063 | 3,179 | 11,695 |
Net unrealized gains (losses) on long-term investments accounted for under the equity method: | ' | ' | ' | ' |
Change in net unrealized gains (losses) | 5,282 | -1,542 | 8,614 | -584 |
Net unrealized gains (losses) reclassified into net income | 0 | 0 | 0 | 0 |
Net unrealized gains (losses) on long-term investments accounted for under the equity method | 5,282 | -1,542 | 8,614 | -584 |
Net change in forward contracts | 15 | 16 | 32 | 31 |
Net change in pension-related amounts | 147 | 351 | 295 | 702 |
Other comprehensive income | 2,576 | 1,888 | 12,120 | 11,844 |
Income tax effect on: | ' | ' | ' | ' |
Change in net unrealized (losses) gains on investment securities | 1,193 | -1,163 | -1,780 | -6,863 |
Net unrealized losses (gains) reclassified into net income on investment securities | -7 | -80 | -29 | 2,115 |
Change in unrealized gains (losses) on long-term investments | -2,184 | 626 | -3,554 | 237 |
Net unrealized gains (losses) on long-term investments accounted for under the equity method | 0 | 0 | 0 | 0 |
Forward contracts | -6 | -6 | -12 | -12 |
Pension-related amounts | -61 | -143 | 74 | -285 |
Income tax provision on other comprehensive income | -1,065 | -766 | -5,301 | -4,808 |
Other comprehensive income, net of tax | 1,511 | 1,122 | 6,819 | 7,036 |
Comprehensive income | 14,542 | 14,633 | 23,379 | 18,866 |
Comprehensive income attributed to non-controlling interest | -5,106 | 0 | -6,055 | 0 |
Comprehensive income attributed to Vector Group Ltd. | $9,436 | $14,633 | $17,324 | $18,866 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Stockholders' Deficiency (USD $) | 6 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ($21,609) | $9,748 | $0 | ($114,787) | $22,860 | ($12,857) | ($12,857) | $73,427 |
Beginning Balance (in shares) | ' | 97,482,998 | ' | ' | ' | ' | ' | ' |
Net Income | 16,560 | ' | ' | 10,505 | ' | ' | ' | 6,055 |
Change in net loss and prior service cost, net of income taxes | 369 | ' | ' | ' | 369 | ' | ' | ' |
Forward contract adjustments, net of income taxes | 20 | ' | ' | ' | 20 | ' | ' | ' |
Unrealized gain on long-term investment securities accounted for under the equity method, net of income taxes | 5,060 | ' | ' | ' | 5,060 | ' | ' | ' |
Change in net unrealized gain on investment securities, net of income taxes | 1,328 | ' | ' | ' | 1,328 | ' | ' | ' |
Net unrealized loss reclassified into net income, net of income taxes | 42 | ' | ' | ' | 42 | ' | ' | ' |
Unrealized gain on investment securities, net of income taxes | 1,370 | ' | ' | ' | ' | ' | ' | ' |
Total other comprehensive income | 6,819 | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income | 23,379 | ' | ' | ' | ' | ' | ' | ' |
Distributions and dividends on common stock | -79,859 | ' | -49,756 | -30,103 | ' | ' | ' | ' |
Note conversions, net of income taxes | 31,196 | 268 | 30,928 | ' | ' | ' | ' | ' |
Note conversion, net of income taxes (in shares) | ' | 2,682,466 | ' | ' | ' | ' | ' | ' |
Beneficial conversion feature of notes payable, net of income taxes of $10,327 | 14,648 | ' | 14,648 | ' | ' | ' | ' | ' |
Exercise of stock options | 3,405 | 27 | 3,378 | ' | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | 271,942 | ' | ' | ' | ' | ' | ' |
Tax benefit of options exercised | 680 | ' | 680 | ' | ' | ' | ' | ' |
Stock-based compensation | 987 | ' | 987 | ' | ' | ' | ' | ' |
Tax rate adjustment | -865 | ' | -865 | ' | ' | ' | ' | ' |
Distributions to non-controlling interest | -3,075 | ' | ' | ' | ' | ' | ' | -3,075 |
Ending Balance | ($31,113) | $10,043 | $0 | ($134,385) | $29,679 | ($12,857) | ($12,857) | $76,407 |
Ending Balance (in shares) | ' | 100,437,406 | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Stockholders' Deficiency (Parenthetical) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Statement of Stockholders' Equity [Abstract] | ' |
Beneficial conversion feature of notes payable, tax | $10,327 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net cash provided by operating activities | $53,995 | $5,190 |
Cash flows from investing activities: | ' | ' |
Sale of investment securities | 49,296 | 43,115 |
Purchase of investment securities | -110,419 | -90,368 |
Proceeds from sale or liquidation of long-term investments | 549 | 75 |
Purchase of long-term investments | -7,000 | -5,000 |
Investments in non-consolidated real estate businesses | -12,534 | -19,048 |
Investments in consolidated real estate businesses | 0 | -7,657 |
Distributions from non-consolidated real estate businesses | 3,539 | 0 |
Increase in cash surrender value of life insurance policies | -395 | -303 |
Increase in restricted assets | -371 | -1,268 |
Issuance of notes receivable | -250 | 0 |
Proceeds from sale of fixed assets | 4 | 13 |
Capital expenditures | -10,144 | -5,995 |
Repayments of notes receivable | 933 | 8,433 |
Purchase of subsidiaries | -250 | 0 |
Net cash used in investing activities | -87,042 | -78,003 |
Cash flows from financing activities: | ' | ' |
Proceeds from debt issuance | 413,916 | 453,080 |
Deferred financing costs | -12,360 | -11,663 |
Repayments of debt | -8,051 | -418,833 |
Borrowings under revolver | 429,188 | 474,493 |
Repayments on revolver | -437,736 | -476,888 |
Dividends and distributions on common stock | -80,963 | -71,518 |
Distributions to non-controlling interest | -3,075 | 0 |
Proceeds from exercise of Vector options | 3,405 | 0 |
Tax benefit of options exercised | 680 | 0 |
Net cash provided by (used in) financing activities | 305,004 | -51,329 |
Net increase (decrease) in cash and cash equivalents | 271,957 | -124,142 |
Cash and cash equivalents, beginning of period | 234,466 | 405,855 |
Cash and cash equivalents, end of period | $506,423 | $281,713 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||
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 VGR Holding LLC (“VGR Holding”), Liggett Group LLC (“Liggett”), Vector Tobacco Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), Zoom E-Cigs LLC ("Zoom"), 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. New Valley is engaged in the real estate business. | ||||||||||||||||||||||||
The accompanying unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles 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. generally accepted accounting principles for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission. 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. | ||||||||||||||||||||||||
Certain reclassifications have been made to the 2013 financial information to conform to the 2014 presentation. | ||||||||||||||||||||||||
In connection with the December 13, 2013 acquisition of Douglas Elliman, the Company was required to disclose Douglas Elliman’s revenues and costs separately on the face of its condensed consolidated statements of operation. Consequently, the Company also revised the prior period in order to correctly present the gross revenues and costs of the other consolidated real estate investments as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
30-Jun-13 | 30-Jun-13 | |||||||||||||||||||||||
As Previously Reported | Revision | As Revised | As Previously Reported | Revision | As Revised | |||||||||||||||||||
Revenues | $ | 249,120 | $ | (249,120 | ) | $ | — | $ | 489,522 | $ | (489,522 | ) | $ | — | ||||||||||
Tobacco revenues | — | 249,120 | 249,120 | — | 489,522 | 489,522 | ||||||||||||||||||
Real estate revenues | — | 7,106 | 7,106 | — | 12,873 | 12,873 | ||||||||||||||||||
Total revenue | 249,120 | 7,106 | 256,226 | 489,522 | 12,873 | 502,395 | ||||||||||||||||||
Cost of Sales | 180,430 | (180,430 | ) | — | 353,386 | (353,386 | ) | — | ||||||||||||||||
Tobacco cost of sales | — | 180,430 | 180,430 | — | 353,386 | 353,386 | ||||||||||||||||||
Real estate cost of sales | — | 6,015 | 6,015 | — | 10,236 | 10,236 | ||||||||||||||||||
Total cost of sales | 180,430 | 6,015 | 186,445 | 353,386 | 10,236 | 363,622 | ||||||||||||||||||
Operating, selling, administrative and general expenses | $ | 24,450 | $ | 1,091 | $ | 25,541 | $ | 48,800 | $ | 2,637 | $ | 51,437 | ||||||||||||
In addition, the preliminary fair values of the assets acquired, liabilities assumed and the non-controlling interest recorded for Douglas Elliman as of December 13, 2013 were adjusted during the first quarter of 2014. Goodwill and current liabilities were reduced by $454 and $105, respectively, while intangible assets related to favorable lease agreements were increased by $559. The amounts are preliminary as management is still evaluating the valuations of certain assets acquired in the acquisition. These adjustments have been reflected in the Company's condensed consolidated balance sheet as of December 31, 2013. | ||||||||||||||||||||||||
(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 and accumulated paid-in capital. Any amounts exceeding retained earnings are recorded as a reduction to additional paid-in capital. Any amounts then exceeding accumulated paid-in capital are recorded as an increase to accumulated deficit. | ||||||||||||||||||||||||
(c) | Revenue Recognition: | |||||||||||||||||||||||
Tobacco sales: Revenues from sales are recognized upon the shipment of finished goods when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sale price is determinable and collectibility is reasonably assured. The Company provides an allowance for expected sales returns, net of any related inventory cost recoveries. Certain sales incentives, including promotional price discounts, are classified as reductions of net sales. The Company’s accounting policy is to include federal excise taxes in revenues and cost of goods sold. Since the Company’s significant line of business is tobacco, the Company’s financial position and its results of operations and cash flows have been and could continue to be materially adversely affected by significant unit sales volume declines at the Company and industry levels, regulation, litigation and defense costs, increased tobacco costs or reductions in the selling price of cigarettes in the near term. | ||||||||||||||||||||||||
Real estate sales: Revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, the transaction has been completed and collectibility of the resulting receivable is reasonably assured. Real estate and mortgage commissions earned by the Company’s real estate and mortgage brokerage businesses are recorded as revenue on a gross basis upon the closing of a real estate transaction as evidenced when the escrow or similar account is closed, the transaction documents have been recorded and funds are distributed to all appropriate parties. Commissions and royalties expenses are recognized concurrently with related revenues. Property management fees earned are recorded as revenue when the related services are performed. | ||||||||||||||||||||||||
E-Cigarettes: Revenues from sales are recognized upon the shipment of finished goods when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sale price is determinable and collectibility is reasonably assured. The Company provides an allowance for expected sales returns, net of any related inventory cost recoveries. Certain sales incentives, including promotional price discounts, are classified as reductions of net sales. | ||||||||||||||||||||||||
(d) | Earnings Per Share (“EPS”): | |||||||||||||||||||||||
Information concerning the Company's common stock has been adjusted to give retroactive effect to the 5% stock dividend paid to Company stockholders on September 27, 2013. All per share amounts and references to share amounts have been updated to reflect the retrospective effect of the stock dividends. | ||||||||||||||||||||||||
Net income for purposes of determining basic and diluted EPS was as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net income attributed to Vector Group Ltd. | $ | 7,925 | $ | 13,511 | $ | 10,505 | $ | 11,830 | ||||||||||||||||
Income attributed to participating securities | (231 | ) | (374 | ) | (309 | ) | (328 | ) | ||||||||||||||||
Net income attributed to Vector Group Ltd. available to common stockholders | $ | 7,694 | $ | 13,137 | $ | 10,196 | $ | 11,502 | ||||||||||||||||
Basic and diluted EPS were calculated using the following shares: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Weighted-average shares for basic EPS | 96,760,894 | 91,167,749 | 95,686,399 | 91,165,686 | ||||||||||||||||||||
Plus incremental shares related to stock options and non-vested restricted stock | 101,258 | 216,890 | 112,293 | 205,721 | ||||||||||||||||||||
Weighted-average shares for basic and fully diluted EPS | 96,862,152 | 91,384,639 | 95,798,692 | 91,371,407 | ||||||||||||||||||||
The following stock options, non-vested restricted stock and shares issuable upon the conversion of convertible debt were outstanding during the three and six months ended June 30, 2014 and 2013 but were not included in the computation of diluted EPS because the effect was anti-dilutive. | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Number of stock options | — | N/A | — | N/A | ||||||||||||||||||||
Weighted-average exercise price | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Weighted-average shares of non-vested restricted stock | — | 56,175 | — | 56,175 | ||||||||||||||||||||
Weighted-average expense per share | N/A | $ | 15.58 | N/A | $ | 15.58 | ||||||||||||||||||
Weighted-average number of shares issuable upon | 32,493,002 | 28,310,522 | 29,105,625 | 28,310,522 | ||||||||||||||||||||
conversion of debt | ||||||||||||||||||||||||
Weighted-average conversion price | $ | 19.02 | $ | 15.22 | $ | 17.56 | $ | 15.22 | ||||||||||||||||
(e) | Fair Value of Derivatives Embedded within Convertible Debt: | |||||||||||||||||||||||
The Company has estimated the fair market value of the embedded derivatives based principally on the results of a valuation model. 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; thus, a readily determinable fair market value of the embedded derivatives is not available. 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 the Company's stock price. At June 30, 2014, the range of estimated fair market values of the Company's embedded derivatives was between $189,358 and $193,797. The Company recorded the fair market value of its embedded derivatives at the midpoint of the range at $191,554 as of June 30, 2014. At December 31, 2013, the range of estimated fair market values of the Company's embedded derivatives was between $110,758 and $113,392. The Company recorded the fair market value of its embedded derivatives at the midpoint of the range at $112,062 as of December 31, 2013. The estimated fair market value of the Company's embedded derivatives could change significantly based on future market conditions. (See Note 6.) | ||||||||||||||||||||||||
(f) | Other Income, Net: | |||||||||||||||||||||||
Other income, net consists of: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Gain (loss) on warrants | $ | 45 | $ | (28 | ) | $ | (123 | ) | $ | 37 | ||||||||||||||
Interest income | 1,189 | 826 | 2,189 | 1,476 | ||||||||||||||||||||
Accretion of interest income from debt discount on notes receivable | 10 | 588 | 76 | 623 | ||||||||||||||||||||
Out-of-period adjustment | — | — | 1,231 | — | ||||||||||||||||||||
Acceleration of closing fee related to termination of Douglas Elliman joint venture | 2,335 | — | 2,335 | — | ||||||||||||||||||||
Gain on long-term investment | — | 142 | — | 142 | ||||||||||||||||||||
Other (expense) income | (4 | ) | (57 | ) | (7 | ) | 2 | |||||||||||||||||
Other income, net | $ | 3,575 | $ | 1,471 | $ | 5,701 | $ | 2,280 | ||||||||||||||||
The out-of-period adjustment related to a non-accrual of a receivable from Douglas Elliman in the fourth quarter of 2013 and would have increased the Company’s gain on acquisition of Douglas Elliman in 2013. The Company assessed the materiality of this error on all previously issued financial statements and concluded that the error was immaterial to all previously issued financial statements. The impact of correcting this error in the current year is not expected to be material to the Company’s 2014 consolidated financial statements. | ||||||||||||||||||||||||
(g) | Subsequent Events: | |||||||||||||||||||||||
On July 23, 2014, the Company granted its President and Chief Executive Officer an award of 1,000,000 shares of its Common Stock subject to performance-based vesting. The Award shares will be issued pursuant to the terms of an agreement that provides that both a performance requirement and a continued employment requirement must be met over a seven-year performance period to earn vested rights with respect to the Award Shares. The maximum potential amount of the Award Shares reflects recognition of the CEO's contributions as CEO since January 1, 2006 and the value of his management and real estate expertise to the Company. The Company anticipates expensing the value of the grant of approximately $20,660 over the seven-year term of the grant. | ||||||||||||||||||||||||
(h) | New Accounting Pronouncements: | |||||||||||||||||||||||
On April 10, 2014, the Financial Accounting Standards Board issued final guidance to change the criteria for reporting discontinued operations while enhancing disclosures in this area (Accounting Standards Update (“ASU”) No. 2014-08). Under the new guidance, only disposals representing a strategic shift, such as a major line of business, a major geographical area or a major equity investment, should be presented as discontinued operations. The guidance will be applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The guidance is effective for annual financial statements with fiscal years beginning on or after December 15, 2014 with early adoption permitted for disposals or classifications as held for sale which have not been reported in financial statements previously issued or available for issuance. The Company will adopt the guidance effective January 1, 2015 and the guidance is not anticipated to have a material impact on the Company's consolidated financial statements and notes to the consolidated financial statements. | ||||||||||||||||||||||||
On March 13, 2014, the Emerging Issues Task Force (the “Task Force”) reached a final consensus to amend the accounting guidance for stock compensation tied to performance targets (Issue No. 13-D). The objective of this guidance is to clarify the accounting treatment of certain types of performance conditions in stock-based compensation awards, more specifically, when performance targets can be achieved after the requisite service period. The Task Force concluded that performance criteria subsequent to a service period vesting requirement should be treated as vesting conditions, and as a result, this type of performance condition may delay expense recognition until achievement of the performance target is probable. Issue No. 13-D will be effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard but does not anticipate it will have a material impact on the Company's consolidated financial statements or notes to the consolidated financial statements. | ||||||||||||||||||||||||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 will be effective for the Company on January 1, 2017. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements. |
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
INVENTORIES | ||||||||
Inventories consist of: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Leaf tobacco | $ | 59,506 | $ | 49,140 | ||||
Other raw materials | 3,196 | 3,161 | ||||||
Work-in-process | 388 | 353 | ||||||
Finished goods | 65,021 | 67,201 | ||||||
E-Cigarettes | 9,705 | 839 | ||||||
Inventories at current cost | 137,816 | 120,694 | ||||||
LIFO adjustments | (29,559 | ) | (27,198 | ) | ||||
$ | 108,257 | $ | 93,496 | |||||
The Company has a leaf inventory management program whereby, among other things, it is committed to purchase certain quantities of leaf tobacco. The purchase commitments are for quantities not in excess of anticipated requirements and are at prices, including carrying costs, established at the commitment date. At June 30, 2014, Liggett had tobacco purchase commitments of approximately $17,277 and E-Cigarettes purchase commitments of $538. The Company has a single source supply agreement for fire safe cigarette paper through 2015. | ||||||||
All of the Company's inventories at June 30, 2014 and December 31, 2013 have been reported under the LIFO method. |
Investment_Securities_Availabl
Investment Securities Available for Sale | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||
Investment Securities Available for Sale | ' | |||||||||||||||
INVESTMENT SECURITIES AVAILABLE FOR SALE | ||||||||||||||||
The components of investment securities available for sale at June 30, 2014 were as follows: | ||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | |||||||||||||||
Marketable equity securities | $ | 55,602 | $ | 68,738 | $ | (1,306 | ) | $ | 123,034 | |||||||
Mutual funds invested in fixed income securities | 60,217 | 305 | — | 60,522 | ||||||||||||
Marketable debt securities | 52,883 | 1,744 | (416 | ) | 54,211 | |||||||||||
Total investment securities available for sale | $ | 168,702 | $ | 70,787 | $ | (1,722 | ) | $ | 237,767 | |||||||
The components of investment securities available for sale at December 31, 2013 were as follows: | ||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | |||||||||||||||
Marketable equity securities | $ | 53,586 | $ | 65,851 | $ | (963 | ) | $ | 118,474 | |||||||
Marketable debt securities | 53,063 | 1,497 | (500 | ) | 54,060 | |||||||||||
Total investment securities available for sale | $ | 106,649 | $ | 67,348 | $ | (1,463 | ) | $ | 172,534 | |||||||
The table below summarizes the maturity dates of marketable debt securities at June 30, 2014. | ||||||||||||||||
Investment Type: | Market Value | Under 1 Year | 1 Year up to 5 Years | More than 5 Years | ||||||||||||
U.S. Government securities | $ | 11,197 | $ | 830 | $ | 10,367 | $ | — | ||||||||
Corporate securities | 30,648 | 2,906 | 20,206 | 7,536 | ||||||||||||
U.S. mortgage backed securities | 214 | — | 214 | — | ||||||||||||
Commercial mortgage-backed securities | 6,645 | 854 | 5,791 | — | ||||||||||||
U.S. asset backed securities | 5,061 | — | 5,061 | — | ||||||||||||
Government agencies | 192 | — | 192 | — | ||||||||||||
Index-linked U.S. bonds | 254 | — | 254 | — | ||||||||||||
Total marketable debt securities by maturity dates | $ | 54,211 | $ | 4,590 | $ | 42,085 | $ | 7,536 | ||||||||
Long_Term_Investments
Long Term Investments | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Long-term Investments [Abstract] | ' | |||||||||||||||
Long-Term Investments | ' | |||||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||||||
Long-term investments accounted for at cost: | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Investment partnerships | $ | 26,541 | $ | 32,619 | $ | 20,041 | $ | 24,095 | ||||||||
Real estate partnership | 698 | 1,148 | 747 | 1,067 | ||||||||||||
Investments accounted for at cost | $ | 27,239 | $ | 33,767 | $ | 20,788 | $ | 25,162 | ||||||||
The Company contributed an additional $7,000 to Investment Partnerships during the six months ended June 30, 2014. | ||||||||||||||||
Long-term investment partnership accounted for under the equity method: | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Investment partnership | $ | 17,842 | $ | 8,595 | ||||||||||||
The Company recorded equity losses of $273 and equity income of $846 for the three months ended June 30, 2014 and 2013, respectively, related to the limited partnership. The Company recorded equity income of $633 and $823 for the six months ended June 30, 2014 and 2013, respectively, related to the limited partnership. | ||||||||||||||||
The carrying value of the investment was approximately $17,842 and $8,595 as of June 30, 2014 and December 31, 2013, respectively, which approximated the investment's fair value. |
New_Valley_LLC
New Valley LLC | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
New Valley LLC [Abstract] | ' | |||||||||
New Valley LLC | ' | |||||||||
NEW VALLEY LLC | ||||||||||
Residential Brokerage Business Acquisition. New Valley is engaged in the real estate business and is seeking to acquire additional real estate properties and operating companies. As of January 1, 2013, the Company owned a 50% interest in Douglas Elliman, and the Company accounted for its 50% using the equity method of accounting. On December 13, 2013, an affiliate of New Valley acquired an additional 20.59% interest in Douglas Elliman from Prudential Real Estate Financial Services of America, Inc. for a purchase price of $60,000 in cash. The acquisition increased the Company's ownership position in Douglas Elliman from 50% to 70.59% and resulted in the Company having control. | ||||||||||
The transaction was accounted for as an acquisition of a business in the fourth quarter of 2013. The preliminary fair values of the assets acquired, liabilities assumed and the non-controlling interest recorded for Douglas Elliman as of December 13, 2013 were adjusted during the first quarter of 2014. Goodwill and current liabilities were reduced by $454 and $105, respectively, while intangible assets related to favorable lease agreements were increased by $559. The amounts are preliminary as management is still evaluating the valuations of certain assets acquired in the acquisition. These adjustments have been reflected in the Company's condensed consolidated balance sheet as of December 31, 2013 and March 31, 2014. | ||||||||||
Equity Method of Accounting. Prior to December 13, 2013, New Valley accounted for its 50% interest in Douglas Elliman under the equity method of accounting. New Valley recorded income associated with Douglas Elliman of $6,815 and $7,438 for the three and six months ended June 30, 2013, respectively, which included management fees earned by New Valley from Douglas Elliman. | ||||||||||
Summarized income statement information for Douglas Elliman for the three and six months ended June 30, 2013, is presented below. | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | |||||||||
2013 | 2013 | |||||||||
Revenues | $ | 113,647 | $ | 188,184 | ||||||
Costs and expenses | 100,093 | 173,707 | ||||||||
Depreciation expense | 985 | 1,958 | ||||||||
Amortization expense | 55 | 111 | ||||||||
Other income | 261 | 403 | ||||||||
Interest income, net | 8 | 8 | ||||||||
Income tax expense | 301 | 242 | ||||||||
Net income | $ | 12,482 | $ | 12,577 | ||||||
New Valley received cash distributions from Douglas Elliman of $2,636 for the six months ended June 30, 2013. | ||||||||||
Investments in non-consolidated real estate businesses. New Valley also holds equity investments in various real estate projects domestically and internationally. The components of “Investments in non-consolidated real estate businesses” were as follows: | ||||||||||
June 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Sesto Holdings | $ | 5,037 | $ | 5,037 | ||||||
Land Development | 5,037 | 5,037 | ||||||||
10 Madison Square Park West (f/k/a 1107 Broadway) | 6,384 | 6,579 | ||||||||
The Whitman | 526 | 1,165 | ||||||||
The Marquand | 7,000 | 7,000 | ||||||||
11 Beach Street | 12,328 | 11,160 | ||||||||
701 Seventh Avenue | 11,324 | 11,148 | ||||||||
101 Murray Street | 23,006 | 19,256 | ||||||||
Leroy Street | 652 | 1,150 | ||||||||
PUBLIC Chrystie House (f/k/a Chrystie Street) | 3,081 | 2,048 | ||||||||
25-19 43rd Avenue | 733 | — | ||||||||
23-10 Queens Plaza South | 9,528 | 8,058 | ||||||||
8701 Collins Avenue | 4,000 | 3,794 | ||||||||
Condominium and Mixed Use Development | 78,562 | 71,358 | ||||||||
Maryland Portfolio | 3,518 | 3,498 | ||||||||
ST Portfolio | 15,550 | 15,984 | ||||||||
Apartment Buildings | 19,068 | 19,482 | ||||||||
Park Lane Hotel | 17,447 | 19,514 | ||||||||
Hotel Taiwana | 7,467 | 7,428 | ||||||||
Coral Beach | 3,410 | 2,964 | ||||||||
Hotels | 28,324 | 29,906 | ||||||||
Other | 2,638 | 2,419 | ||||||||
Investments in non-consolidated real estate businesses | $ | 133,629 | $ | 128,202 | ||||||
Condominium and Mixed Use Development: | ||||||||||
Condominium and mixed use developments investments range in ownership percentage from 5% to 49.5%. New Valley recorded equity income of $7 and $2,299 during the three and six months ended June 30, 2014, respectively. The $2,299 equity income was primarily related to the sale of a commercial unit at 10 Madison Square Park West (f/k/a 1107 Broadway). New Valley recorded equity income of $130 and $130 for the three and six months ended June 30, 2013. During the six months ended June 30, 2014, New Valley made capital contributions totaling $10,696 and received distributions of $5,791. During the six months ended June 30, 2013, New Valley made capital contributions totaling $15,392 and received distributions of $130. New Valley's maximum exposure to loss as a result of its investments in condominium and mixed use developments was $78,562 at June 30, 2014. | ||||||||||
Apartment Buildings: | ||||||||||
Apartment buildings investments range in ownership percentage from 7.5% to 16.4%. New Valley recorded equity net equity losses of $217 and $142 for the three months ended June 30, 2014 and 2013, respectively, related to the apartment portfolios. New Valley recorded equity losses of $164 and $283 for six months ended June 30, 2014 and 2013, respectively, primarily related to an apartment portfolio. New Valley received distributions of $250 and $125 during the six months ended June 30, 2014 and 2013, respectively, related to an apartment portfolio. New Valley's maximum exposure to loss as a result of its investment in apartment buildings was $19,068 at June 30, 2014. | ||||||||||
Hotels: | ||||||||||
Hotel investments range in ownership percentage from 5% to 49%. During the three and six months ended June 30, 2014, New Valley recorded net equity losses of $857 and $2,171. New Valley made capital contributions totaling $589 for the six months ended June 30, 2014, related to Coral Beach. New Valley made capital contributions totaling $3,655 for the six months ended June 30, 2013, primarily related to Hotel Taiwana. New Valley's maximum exposure to loss as a result of its investments in hotels was $28,324 at June 30, 2014. | ||||||||||
Other: | ||||||||||
Other non-consolidated real estate business relate to an investment in a mortgage company and an insurance company partially owned by Douglas Elliman. | ||||||||||
Real Estate Held for Sale: | ||||||||||
The components of “Real estate held for sale, net” were as follows: | ||||||||||
June 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Escena, net | $ | 10,669 | $ | 10,625 | ||||||
Indian Creek | — | 10,286 | ||||||||
Real estate held for sale, net | $ | 10,669 | $ | 20,911 | ||||||
Escena. In October 2013, the Company sold 200 of the 867 residential lots. The remaining project consists of 667 residential lots, consisting of both single family and multi-family lots, an 18-hole golf course, clubhouse restaurant and golf shop, and a seven-acre site approved for a 450-room hotel. | ||||||||||
The assets of "Escena, net" are as follows: | ||||||||||
June 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Land and land improvements | $ | 8,930 | $ | 8,930 | ||||||
Building and building improvements | 1,830 | 1,530 | ||||||||
Other | 1,526 | 1,577 | ||||||||
12,286 | 12,037 | |||||||||
Less accumulated depreciation | (1,617 | ) | (1,412 | ) | ||||||
$ | 10,669 | $ | 10,625 | |||||||
The Company recorded an operating loss of $287 and $307 for the three months ended June 30, 2014 and 2013, respectively, from Escena. The Company recorded operating income of $233 and $76 for the six months ended June 30, 2014 and 2013, respectively, from Escena. | ||||||||||
Investment in Indian Creek. In March 2013, New Valley invested $7,616 for an 80% interest in Timbo LLC ("Indian Creek") which owns a residential real estate project located on Indian Creek, Florida. As a result of the 80% ownership interest, the consolidated financial statements of the Company included the balances of Indian Creek. | ||||||||||
In May 2014, the Indian Creek property was sold for $14,400 and New Valley received a distribution of approximately $7,100. New Valley recognized income of approximately $2,400 from the sale for the three and six months ended June 30, 2014. |
Notes_Payable_Long_Term_Debt_a
Notes Payable, Long Term Debt and Other Obligations | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 consist of: | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Vector: | ||||||||||||||||
7.75% Senior Secured Notes due 2021, including premium of $9,879 and $0 | $ | 609,879 | $ | 450,000 | ||||||||||||
6.75% Variable Interest Senior Convertible Note due 2014, net of unamortized discount of $4,895 and $19,311* | 20,105 | 30,689 | ||||||||||||||
6.75% Variable Interest Senior Convertible Exchange Notes due 2014, net of unamortized discount of $11,569 and $25,944* | 88,461 | 81,586 | ||||||||||||||
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $151,675 and $155,817* | 78,325 | 74,183 | ||||||||||||||
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $104,496 and $0* | 154,254 | — | ||||||||||||||
Liggett: | ||||||||||||||||
Revolving credit facility | 21,876 | 30,424 | ||||||||||||||
Term loan under credit facility | 3,737 | 3,884 | ||||||||||||||
Equipment loans | 18,237 | 17,252 | ||||||||||||||
Other | 603 | 4,325 | ||||||||||||||
Total notes payable, long-term debt and other obligations | 995,477 | 692,343 | ||||||||||||||
Less: | ||||||||||||||||
Current maturities | (141,808 | ) | (151,577 | ) | ||||||||||||
Amount due after one year | $ | 853,669 | $ | 540,766 | ||||||||||||
______________________ | ||||||||||||||||
* The fair value of the derivatives embedded within the 6.75% Variable Interest Senior Convertible Note ($1,716 at June 30, 2014 and $6,607 at December 31, 2013, respectively), the 6.75% Variable Interest Senior Convertible Exchange Notes ($6,052 at June 30, 2014 and $12,521 at December 31, 2013, respectively), the 5.50% Variable Interest Senior Convertible Debentures ($87,217 at June 30, 2014 and $0 at December 31, 2013, respectively), and the 7.50% Variable Interest Senior Convertible Debentures ($96,569 at June 30, 2014 and $92,934 at December 31, 2013, respectively), is separately classified as a derivative liability in the condensed consolidated balance sheets. | ||||||||||||||||
7.75% Senior Secured Notes due 2021 - Vector: | ||||||||||||||||
On April 15, 2014, the Company completed the sale of $150,000 principal amount of its 7.75% Senior Secured Notes due 2021 for a price of 106.750% in a private offering to qualified institutional investors in accordance with Rule 144A of the Securities Act of 1933. The Company received net proceeds of approximately $158,700 after deducting underwriting discounts, commissions, fees and offering expenses. The net proceeds will be used for general corporate purposes, including additional investments in real estate and in its tobacco business. The Company will amortize the deferred costs and debt premium related to the additional Senior Secured Notes over the estimated life of the debt. | ||||||||||||||||
In connection with the issuance of the 7.75% Senior Secured Notes, the Company entered into a Registration Rights Agreement. The Company consummated a registered exchange offer for the 7.75% Senior Secured Notes on July 9, 2014. The new 7.75% Senior Secured Notes issued in the exchange offer have substantially the same terms as the original notes, except that the new 7.75% Senior Secured Notes have been registered under the Securities Act. | ||||||||||||||||
6.75% Variable Interest Senior Convertible Note due 2014 - Vector: | ||||||||||||||||
On March 14, 2014, the holder of the 6.75% Variable Interest Senior Convertible Note due 2014 converted $25,000 principal balance of the $50,000 Note into 2,121,479 of the Company's common shares. The Company recorded non-cash accelerated interest expense related to the converted debt of $3,679 for the six months ended June 30, 2014. The debt conversion resulted in a reduction of debt and an increase to equity in the amount of $25,000. | ||||||||||||||||
6.75% Variable Interest Senior Convertible Exchange Notes due 2014 - Vector: | ||||||||||||||||
On May 20, 2014, a holder of the 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 converted $7,500 principal balance of the $107,530 Notes into 560,987 of the Company's common shares. The Company recorded non-cash accelerated interest expense related to the converted debt of $439 for the three and six months ended June 30, 2014. The debt conversion resulted in a reduction of debt and an increase to equity in the amount of $7,500. | ||||||||||||||||
5.5% Variable Interest Senior Convertible Notes due 2020 - Vector: | ||||||||||||||||
On March 24, 2014, the Company completed the sale of $258,750 of its Variable Interest Convertible Senior Notes due 2020 (the "2020 Convertible Notes"). The 2020 Convertible Notes are the Company's senior unsecured obligations and are effectively subordinated to any of its secured indebtedness to the extent of the assets securing such indebtedness. The 2020 Convertible Notes are also structurally subordinated to all liabilities and commitments of the Company's subsidiaries. | ||||||||||||||||
The aggregate net proceeds from the sale of the 2020 Convertible Notes were approximately $250,300 after deducting underwriting discounts, commissions, fees and offering expenses. The net proceeds will be used for general corporate purposes, including for additional investments in real estate and in the Company's tobacco business. The Company may also consider using a portion of the net proceeds from the sale of the notes to address upcoming debt maturities. | ||||||||||||||||
The 2020 Convertible Notes pay interest (“Total Interest”) on a quarterly basis beginning April 15, 2014 at a rate of 1.75% per annum plus additional interest, which is based on the amount of cash dividends paid during the prior three-month period ending on the record date for such interest payment multiplied by the total number of shares of its common stock into which the debt will be convertible on such record date. Notwithstanding the foregoing, however, the interest payable on each interest payment date after April 15, 2014 shall be the higher of (i) the Total Interest and (ii) 5.5% per annum with the interest payment on April 15, 2014 being based on 5.5% per annum. The notes are convertible into the Company’s common stock at the holder’s option. The conversion price at June 30, 2014 was $27.16 per share (approximately 36.8155 shares of common stock per $1,000 principal amount of the note), and is subject to adjustment for various events, including the issuance of stock dividends. The notes will mature on April 15, 2020. If a fundamental change (as defined in the indenture) occurs, the Company will be required to offer to repurchase the notes at 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. | ||||||||||||||||
Revolving Credit Facility and Term Loan Under Credit Facility - Liggett: | ||||||||||||||||
As of June 30, 2014, a total of $25,613 was outstanding under the revolving and term loan portions of the credit facility. Availability as determined under the facility was approximately $24,387 based on eligible collateral at June 30, 2014. | ||||||||||||||||
Non-Cash Interest Expense - Vector: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Amortization of debt discount | $ | 7,563 | $ | 8,464 | $ | 20,019 | $ | 15,812 | ||||||||
Amortization of deferred finance costs | 1,055 | 447 | 1,763 | 1,044 | ||||||||||||
Loss on extinguishment of 11% Senior Secured Notes | — | — | — | 3,638 | ||||||||||||
Accelerated interest expense on 6.75% Variable Interest Senior Convertible Note converted | — | — | 3,679 | — | ||||||||||||
Accelerated interest expense on 6.75% Variable Interest Senior Convertible Exchange Notes converted | 439 | — | 439 | — | ||||||||||||
$ | 9,057 | $ | 8,911 | $ | 25,900 | $ | 20,494 | |||||||||
Fair Value of Notes Payable and Long-Term Debt: | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Notes payable and long-term debt | $ | 995,477 | $ | 1,473,738 | $ | 692,343 | $ | 1,006,562 | ||||||||
Notes payable and long-term debt are carried on the condensed balance sheet at amortized cost. The fair value determination disclosed above would be classified as Level 2 under the fair value hierarchy disclosed in Note 9 if such liabilities were recorded on the condensed 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. However, considerable judgment is required to develop the estimates of fair value and, accordingly, the estimate presented herein are not necessarily indicative of the amount that could be realized in a current market exchange. |
Contingencies
Contingencies | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
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”). As new cases are commenced, the costs associated with defending these cases and the risks relating to the inherent unpredictability of litigation increase. The future financial impact of the risks and expenses of litigation are not quantifiable. For the six months ended June 30, 2014 and 2013, Liggett incurred tobacco product liability legal expenses and other litigation costs totaling $5,174 and $3,562, respectively. | ||||||||||||||||||||||||
Litigation is subject to uncertainty and it is possible that there could be adverse developments in pending cases. Management reviews on a quarterly basis with counsel all pending litigation and evaluates 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 some 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. To obtain stays on judgments pending current appeals, Liggett has secured approximately $5,093 in bonds as of June 30, 2014. | ||||||||||||||||||||||||
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. In several cases, plaintiffs have challenged the constitutionality of the bond cap statute, but to date the courts that have addressed the issue 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 disclosed in this Note 7: (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 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. Legal defense costs are expensed as incurred. | ||||||||||||||||||||||||
Cautionary Statement About Engle Progeny Cases. Judgments have been entered against Liggett and other industry defendants in Engle progeny cases. A number of the judgments have been affirmed on appeal and satisfied by the defendants. As of June 30, 2014, 16 Engle progeny cases where Liggett was a defendant at trial resulted in verdicts. Eleven verdicts were returned in favor of the plaintiffs and five in favor of Liggett. Excluding the Lukacs case, which was tried in 2002, seven years before the trials of Engle progeny cases commenced, the compensatory verdicts against Liggett have ranged from $1 to $3,479. In certain cases, the judgments entered have been joint and several with other defendants. In two of the cases, punitive damages were awarded against Liggett. Except as discussed in this Note 7 regarding the cases where an adverse verdict was entered against Liggett and that remain on appeal, 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 (non-class members' claims are generally time-barred), 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 their demand for damages. | ||||||||||||||||||||||||
Although Liggett has generally been successful in managing litigation, 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 may, however, enter into settlement discussions in particular cases if it believes it is in its best interest to do so, including the remaining Engle progeny cases. As of June 30, 2014, Liggett (and in certain cases the Company) had, on an individual basis, settled 144 Engle progeny cases for approximately $1,170 in the aggregate. Seven of those cases were settled in the second quarter of 2014. In addition, in October 2013, Liggett announced a settlement of the claims of over 4,900 Engle progeny plaintiffs (see Engle Progeny Settlement below). | ||||||||||||||||||||||||
Individual Actions | ||||||||||||||||||||||||
As of June 30, 2014, there were 49 Individual Actions pending against Liggett and, in certain cases, the Company, 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 Engle progeny cases or the approximately 100 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, that are pending against Liggett or the Company as of June 30, 2014: | ||||||||||||||||||||||||
State | Number | |||||||||||||||||||||||
of Cases | ||||||||||||||||||||||||
Florida | 30 | |||||||||||||||||||||||
New York | 9 | |||||||||||||||||||||||
Maryland | 4 | |||||||||||||||||||||||
Louisiana | 2 | |||||||||||||||||||||||
West Virginia | 2 | |||||||||||||||||||||||
Missouri | 1 | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Engle Case. In May 1994, Engle was filed 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.” In July 1999, after the conclusion of Phase I of the trial, the jury returned a verdict against Liggett and other cigarette manufacturers on certain issues determined by the trial court to be “common” to the causes of action of the plaintiff class. The jury made several findings adverse to the defendants including that defendants' conduct “rose to a level that would permit a potential award or entitlement to punitive damages.” Phase II of the trial was a causation and damages trial for three of the class plaintiffs and a punitive damages trial on a class-wide basis before the same jury that returned the verdict in Phase I. In April 2000, the jury awarded compensatory damages of $12,704 to the three class plaintiffs, to be reduced in proportion to the respective plaintiff’s fault. In July 2000, the jury awarded approximately $145,000,000 in punitive damages, including $790,000 against Liggett. | ||||||||||||||||||||||||
In May 2003, Florida’s Third District Court of Appeal reversed the trial court and remanded the case with instructions to decertify the class. The judgment in favor of one of the three class plaintiffs, in the amount of $5,831, was overturned as time barred and the court found that Liggett was not liable to the other two class plaintiffs. | ||||||||||||||||||||||||
In July 2006, the Florida Supreme Court affirmed the decision vacating the punitive damages award and held that the class should be decertified prospectively, but determined that the following Phase I findings are entitled to res judicata effect in Engle progeny cases: (i) that smoking causes lung cancer, among other diseases; (ii) that nicotine in cigarettes is addictive; (iii) that defendants placed cigarettes on the market that were defective and unreasonably dangerous; (iv) that defendants concealed material information knowing that the information was false or misleading or failed to disclose a material fact concerning the health effects or addictive nature of smoking; (v) that defendants agreed to conceal or omit information regarding the health effects of cigarettes or their addictive nature with the intention that smokers would rely on the information to their detriment; (vi) that defendants sold or supplied cigarettes that were defective; and (vii) that defendants were negligent. The Florida Supreme Court decision also allowed former class members to proceed to trial on individual liability issues (using the above findings) and compensatory and punitive damage issues, provided they filed their individual lawsuits by January 2008. In December 2006, the Florida Supreme Court added the finding that defendants sold or supplied cigarettes that, at the time of sale or supply, did not conform to the representations made by defendants. In October 2007, the United States Supreme Court denied defendants' petition for writ of certiorari. | ||||||||||||||||||||||||
Pursuant to the Florida Supreme Court’s July 2006 ruling in Engle, which 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 in which to file individual lawsuits. As a result, Liggett and the Company, and other cigarette manufacturers, were named defendants 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. | ||||||||||||||||||||||||
Engle Progeny Settlement. On October 23, 2013, the Company 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 approximately $61,600 paid in a lump sum ($2,100 was paid in December 2013 and approximately $59,500 was paid in February 2014) and the balance to be paid in installments over 14 years, subject to a cost of living adjustment beginning in year eight. In exchange, the claims of over 4,900 plaintiffs were dismissed with prejudice against the Company and Liggett. In 2013 the Company recorded a charge of $86,213 in connection with the settlement. Of this amount, $25,213 is related to certain payments discounted to their present value because the timing and amounts of such payments are fixed and determinable. The present value of the installment payments was computed using an 11% annual discount rate. The installment payments total approximately $48,000 on an undiscounted basis. The Company’s future payments will be approximately $3,500 per annum through 2028, with a cost of living increase beginning in 2021. | ||||||||||||||||||||||||
Notwithstanding the comprehensive nature of the Engle Progeny Settlement, approximately 330 plaintiffs' claims remain outstanding. Therefore, the Company and Liggett may still be subject to periodic adverse judgments which could have a material adverse affect on the Company's consolidated financial position, results of operations and cash flows. | ||||||||||||||||||||||||
As of June 30, 2014, the following Engle progeny cases have resulted in judgments against Liggett: | ||||||||||||||||||||||||
Date | Case Name | County | Net Compensatory | Punitive Damages | Status | |||||||||||||||||||
Damages | ||||||||||||||||||||||||
Jun-02 | Lukacs v. R.J. Reynolds | Miami-Dade | $12,418 | None | Liggett satisfied the judgment and the case is concluded. | |||||||||||||||||||
Aug-09 | Campbell v. R.J. Reynolds | Escambia | $156 | None | Liggett satisfied the judgment and the case is concluded. | |||||||||||||||||||
Mar-10 | Douglas v. R.J. Reynolds | Hillsborough | $1,350 | None | Liggett satisfied the judgment and the case is concluded. | |||||||||||||||||||
Apr-10 | Clay v. R.J. Reynolds | Escambia | $349 | $1,000 | Liggett satisfied the judgment and the case is concluded. | |||||||||||||||||||
Apr-10 | Putney v. R.J. Reynolds | Broward | $3,008 | None | On June 12, 2013, the Fourth District Court of Appeal reversed and remanded the case for further proceedings. Plaintiff filed a motion for rehearing which was denied. Both sides have sought discretionary review from the Florida Supreme Court. The appeal is stayed pending the outcome of the Hess appeal. | |||||||||||||||||||
Apr-11 | Tullo v. R.J. Reynolds | Palm Beach | $225 | None | Affirmed by the Fourth District Court of Appeal. The defendants have sought discretionary review from the Florida Supreme Court. | |||||||||||||||||||
Jan-12 | Ward v. R.J. Reynolds | Escambia | $1 | None | Affirmed by the First District Court of Appeal. Liggett satisfied the merits judgment and other than an issue regarding attorneys' fees, the case is concluded. | |||||||||||||||||||
May-12 | Calloway v. R.J. Reynolds | Broward | $1,947 | $7,600 | A joint and several judgment for $16,100 was entered against R.J. Reynolds, Philip Morris, Lorillard and Liggett. On appeal to the Fourth District Court of Appeal. | |||||||||||||||||||
Dec-12 | Buchanan v. R.J. Reynolds | Leon | $2,035 | None | A joint and several judgment for $5,500 was entered against Liggett and Philip Morris. Affirmed by the First District Court of Appeal, but, the court certified an issue of conflict with another case. | |||||||||||||||||||
May-13 | Cohen v. R.J. Reynolds | Palm Beach | $205 | None | Defendants' motion seeking a new trial was granted by the trial court. Plaintiff appealed to the Fourth District Court of Appeal. | |||||||||||||||||||
Aug-13 | Rizzuto v. R.J. Reynolds | Hernando | $3,479 | None | A joint and several judgment for $11,132 was entered against Philip Morris and Liggett. The court denied defendants' request to reduce the compensatory damages by the plaintiff's comparative fault. Liggett entered into a settlement agreement to resolve its portion of the judgment for $1,500. The settlement is subject to bankruptcy court approval. | |||||||||||||||||||
Total Damages Awarded: | $25,173 | $8,600 | ||||||||||||||||||||||
Amounts paid or compromised: | ($14,274) | ($1,000) | ||||||||||||||||||||||
Damages remaining on Appeal: | $10,899 | $7,600 | ||||||||||||||||||||||
Through June 30, 2014, Liggett has paid $18,540, including interest and legal fees, to satisfy the judgments in five Engle progeny cases (Lukacs, Campbell, Douglas, Clay and Ward). | ||||||||||||||||||||||||
The Company's potential range of loss in the Putney, Tullo, Calloway, Buchanan, Cohen and Rizzuto cases is between $0 and $18,499 in the aggregate, plus accrued interest and legal fees. In determining the range of loss, the Company considers potential settlements as well as future appellate relief. Except as disclosed elsewhere in this Note 7, the Company is unable to determine a range of loss related to the remaining Engle progeny cases. Other than $1,500 accrued for Rizzuto, no amounts have been expensed or accrued in the accompanying condensed consolidated financial statements for the cases described above. However, 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. | ||||||||||||||||||||||||
Federal Engle Progeny Cases. Three federal judges (in the Merlob, B. Brown and Burr cases) ruled that the findings in Phase I of the Engle proceedings could not be used to satisfy elements of plaintiffs' claims, and two of those rulings (B. Brown and Burr) were certified by the trial court for interlocutory review. The certification was granted by the United States Court of Appeals for the Eleventh Circuit and the appeals were consolidated (in February 2009, the appeal in Burr was dismissed for lack of prosecution). In July 2010, the Eleventh Circuit ruled that plaintiffs do not have an unlimited right to use the findings from the original Engle trial to meet their burden of establishing the elements of their claims at trial. Rather, plaintiffs may only use the findings to establish specific facts that they demonstrate with a reasonable degree of certainty were actually decided by the original Engle jury. The Eleventh Circuit remanded the case to the district court to determine what specific factual findings the Engle jury actually made. That determination was never undertaken. Instead, in the Waggoner case, the United States District Court for the Middle District of Florida ruled that the application of the Phase I findings did not deprive defendants of any constitutional due process rights. The court ruled, however, that plaintiffs must establish legal causation to establish liability. With respect to punitive damages, the district court held that the plaintiffs could rely on the findings in support of their punitive damages claims but that, in addition, plaintiffs must demonstrate specific conduct by specific defendants, independent of the Engle findings, that satisfies the standards for awards of punitive damages. The Waggoner ruling applies to all of the cases pending in the Middle District of Florida. Subsequently, in September 2013 the United States Court of Appeals for the Eleventh Circuit affirmed the judgments in two lower court cases, holding that giving full faith and credit to the Florida Supreme Court's Engle decision would not deprive defendant R.J. Reynolds of due process of law. Pursuant to the Engle progeny settlement, Liggett and the Company are no longer defendants in any federal Engle progeny cases. | ||||||||||||||||||||||||
Appeals of Engle Progeny Verdicts. In December 2010, in the Martin case, a state court case against R.J. Reynolds, the First District Court of Appeal issued the first ruling by a Florida intermediate appellate court to address the B. Brown decision discussed above. The panel held that the trial court correctly construed the Florida Supreme Court's 2006 decision in Engle in instructing the jury on the preclusive effect of the Phase I Engle proceedings, expressly disagreeing with certain aspects of the B. Brown decision. In July 2011, the Florida Supreme Court declined to review the First District Court of Appeal's decision. In March 2012, the United States Supreme Court declined to review the Martin case, along with the Campbell case and two other Engle progeny cases. This decision has led to other adverse rulings by other state appellate courts. | ||||||||||||||||||||||||
In Jimmie Lee Brown, a state court case against R.J. Reynolds, the trial court tried the case in two phases. In the first phase, the jury determined that the smoker was addicted to cigarettes that contained nicotine and that his addiction was a legal cause of his death, thereby establishing he was an Engle class member. In the second phase, the jury determined whether the plaintiff established legal cause and damages with regard to each of the underlying claims. The jury found in favor of plaintiff in both phases. In September 2011, the Fourth District Court of Appeal affirmed the judgment entered in plaintiff's favor and approved the trial court's procedure of bifurcating the trial. The Fourth District Court of Appeal agreed with Martin that individual post-Engle plaintiffs need not prove conduct elements as part of their burden of proof, but disagreed with Martin to the extent that the First District Court of Appeal only required a finding that the smoker was a class member to establish legal causation as to addiction and the underlying claims. The Fourth District Court of Appeal held that in addition to establishing class membership, Engle progeny plaintiffs must also establish legal causation and damages as to each claim asserted. In so finding, the Fourth District Court of Appeal's decision in Jimmie Lee Brown is in conflict with Martin. | ||||||||||||||||||||||||
In the Rey case, a state court case, the trial court entered final summary judgment on all claims in favor of the Company, Liggett and Lorillard based on what has been referred to in the Engle progeny litigation as the "Liggett Rule." The Liggett Rule stands for the proposition that a manufacturer cannot have liability to a smoker under any asserted claim if the smoker did not use a product manufactured by that particular defendant. The Liggett Rule is based on the entry of final judgment in favor of Liggett/Brooke Group in Engle on all of the claims asserted against them by class representatives Mary Farnan and Angie Della Vecchia, even though the Florida Supreme Court upheld, as res judicata, the generic finding that Liggett/Brooke Group engaged in a conspiracy to commit fraud by concealment. In September 2011, the Third District Court of Appeal affirmed in part and reversed in part holding that the defendants were entitled to summary judgment on all claims asserted against them other than the claim for civil conspiracy. Defendants' further appellate efforts were unsuccessful. | ||||||||||||||||||||||||
In March 2012, in Douglas, the Second District Court of Appeal issued a decision affirming the judgment of the trial court in favor of the plaintiff and upholding the use of the Engle jury findings but certified to the Florida Supreme Court the question of whether granting res judicata effect to the Engle jury findings violates defendants' federal due process rights. In March 2013, the Florida Supreme Court affirmed the use of Engle jury findings and determined that there is no violation of the defendants' due process rights. This was the first time the Florida Supreme Court addressed the merits of an Engle progeny case. In October 2013, the United States Supreme Court declined to review the decision and Liggett satisfied the judgment. Recently, the United States Supreme Court declined to review the decisions in several other progeny cases. | ||||||||||||||||||||||||
Liggett Only Cases. There are currently five cases pending where Liggett is the only remaining defendant. These cases consist of three Individual Actions and two Engle progeny cases. In one of the Individual Actions, Hausrath (NY state court), plaintiff moved to restore the case to the active docket calendar after it was removed by the court. The motion was granted and Liggett appealed. There has been no recent activity in the other two Individual Actions. Lambert, an Engle progeny case, is set for trial on September 15, 2014. The other Engle progeny case is not currently set for trial. Cases where Liggett is the only defendant could increase as a result of the remaining Engle progeny cases. | ||||||||||||||||||||||||
Class Actions | ||||||||||||||||||||||||
As of June 30, 2014, there were four actions pending for which either a class had been certified or plaintiffs were seeking class certification, where Liggett is a named defendant, including one alleged price fixing case. Other cigarette manufacturers are also named in these actions. | ||||||||||||||||||||||||
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. In October 2004, the trial court stayed the Young case pending the outcome of an appeal in Scott v. The American Tobacco Co., a Louisiana case seeking medical monitoring for resident smokers. Liggett was not a party in the Scott case. The Scott case was tried to a jury which denied the medical monitoring claim but determined instead that the defendants must establish a smoking cessation program. Notwithstanding the fact that Scott is now concluded, in June 2013, plaintiffs’ counsel moved for an indefinite stay of the Young case. The defendants did not oppose the stay and it was entered upon consent. | ||||||||||||||||||||||||
In February 1998, in Parsons v. AC & S Inc., a class was commenced on behalf of all West Virginia residents who allegedly have personal injury claims arising from exposure to cigarette smoke and asbestos fibers. The complaint seeks to recover $1,000 in compensatory and punitive damages individually and unspecified compensatory and punitive damages for the class. The case is stayed as a result of the December 2000 bankruptcy of three of the defendants. | ||||||||||||||||||||||||
In February 2000, in Smith v. Philip Morris, a case pending in Kansas, a class was commenced against cigarette manufacturers alleging they conspired to fix cigarette prices in violation of antitrust laws. Plaintiffs seek to recover an unspecified amount in actual and punitive damages. Class certification was granted in November 2001. In January 2012, the trial court heard oral argument on defendants' motions for summary judgment and in March 2012, the court granted the motions and dismissed plaintiffs' claims with prejudice. In July 2012, plaintiffs noticed an appeal. In July 2014, the court of appeals affirmed the lower court's decision. | ||||||||||||||||||||||||
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. In January 2002, the court severed Liggett from the trial of the consolidated action. After two mistrials, on May 15, 2013, the jury rejected all but one of the plaintiffs' claims, finding for the plaintiffs on the claim that ventilated filter cigarettes, sold between 1964 and July 1, 1969, should have included instructions on how to use them. On July 15, 2013, plaintiffs filed a renewed motion for judgment as a matter of law and a motion for a new trial. Defendants filed a motion for judgment notwithstanding the verdict. All post-trial motions were denied and the issue of damages was reserved for further proceedings that have not yet been scheduled. Final judgment as to liability was issued on October 28, 2013, after which the plaintiffs filed a Notice of Appeal with respect to the defense verdicts obtained on five of the six claims. The defendants did not appeal the verdict in favor of the plaintiffs on the "failure to instruct" claim which impacted less than 30 plaintiffs. If the case were to proceed against Liggett, it is estimated that Liggett could be a defendant in approximately 100 of the individual cases. | ||||||||||||||||||||||||
Class action suits have been filed in a number of states against cigarette manufacturers, alleging, among other things, that use of the terms “lights” and “ultra lights” constitutes unfair and deceptive trade practices. In December 2008, the United States Supreme Court, in Altria Group v. Good, ruled that the Federal Cigarette Labeling and Advertising Act did not preempt the state law claims asserted by the plaintiffs and that they could proceed with their claims under the Maine Unfair Trade Practices Act. The Good decision has resulted in the filing of additional “lights” class action cases in other states against other cigarette manufacturers. Although Liggett was not a defendant in the Good case, and is not currently a defendant in any other “lights” class actions, an adverse ruling or commencement of additional “lights” related class actions could have a material adverse effect on the Company. | ||||||||||||||||||||||||
In addition to the cases described above, numerous class actions remain certified against other cigarette manufacturers. Adverse decisions in these cases could have a material adverse affect on Liggett’s sales volume, operating income and cash flows. | ||||||||||||||||||||||||
Health Care Cost Recovery Actions | ||||||||||||||||||||||||
As of June 30, 2014, there was one remaining Health Care Cost Recovery Action 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 based on various theories of recovery as a result of alleged sales of tobacco products to minors. The case is inactive. Other cigarette manufacturers are also named as defendants. | ||||||||||||||||||||||||
The claims asserted in health care cost recovery actions vary. Although, typically, no specific damage amounts are pled, 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. | ||||||||||||||||||||||||
Other claims asserted 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. | ||||||||||||||||||||||||
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 an unspecified amount of health care costs paid and to be paid by the federal government for lung cancer, heart disease, emphysema and other smoking-related illnesses allegedly caused by the fraudulent and tortious conduct of defendants, to restrain defendants and co-conspirators from engaging in alleged fraud and other allegedly unlawful conduct in the future, and to compel defendants to disgorge the proceeds of their unlawful conduct. Claims were asserted under RICO. | ||||||||||||||||||||||||
In August 2006, the trial court entered a Final Judgment against each of the cigarette manufacturing defendants, except Liggett. In May 2009, the United States Court of Appeals for the District of Columbia affirmed most of the district court's decision. The United States Supreme Court denied review. As a result, the cigarette manufacturing defendants, other than Liggett, are now subject to the trial court's Final Judgment which ordered the following relief: (i) an injunction against “committing any act of racketeering” relating to the manufacturing, marketing, promotion, health consequences or sale of cigarettes in the United States; (ii) an injunction against participating directly or indirectly in the management or control of the Council for Tobacco Research, the Tobacco Institute, or the Center for Indoor Air Research, or any successor or affiliated entities of each; (iii) an injunction against “making, or causing to be made in any way, any material false, misleading, or deceptive statement or representation or engaging in any public relations or marketing endeavor that is disseminated to the United States' public and that misrepresents or suppresses information concerning cigarettes”; (iv) an injunction against conveying any express or implied health message through use of descriptors on cigarette packaging or in cigarette advertising or promotional material, including “lights,” “ultra lights,” and “low tar,” which the court found could cause consumers to believe one cigarette brand is less hazardous than another brand; (v) 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; (vi) the disclosure of defendants' public document websites and the production of all documents produced to the government or produced in any future court or administrative action concerning smoking and health; (vii) the disclosure of disaggregated marketing data to the government in the same form and on the same schedules as defendants now follow in disclosing such data to the Federal Trade Commission for a period of ten years; (viii) certain restrictions on the sale or transfer by defendants of any cigarette brands, brand names, formulas or cigarette business within the United States; and (ix) payment of the government's costs in bringing the action. In June 2014, the court approved a consent agreement between the defendants and the Department of Justice regarding the "corrective statements" to be issued by the defendants. The implementation of the "corrective statements" is uncertain as the defendants are appealing the specific language of the statements. | ||||||||||||||||||||||||
It is unclear what impact, if any, the Final Judgment will have on the cigarette industry as a whole. To the extent that the Final Judgment leads to a decline in industry-wide shipments of cigarettes in the United States or otherwise results in restrictions that adversely affect the industry, Liggett's sales volume, operating income and cash flows could be materially adversely affected. | ||||||||||||||||||||||||
Upcoming Trials | ||||||||||||||||||||||||
As of June 30, 2014, there were 16 Engle progeny cases scheduled for trial through June 30, 2015, where Liggett (and in many cases, the Company) is a named defendant. One of these cases, Lambert, is a Liggett only Engle progeny case. Trial dates are, however, subject to change. | ||||||||||||||||||||||||
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, Brown & Williamson, R.J. Reynolds and Lorillard (the “Original Participating Manufacturers” or “OPMs”) and Liggett (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 the “Participating Manufacturers”) 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 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 Participating Manufacturers. 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 Participating Manufacturer 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 Participating Manufacturers from licensing third parties to advertise tobacco brand names in any manner prohibited under the MSA; and prohibits Participating Manufacturers 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 Participating Manufacturers 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 Participating Manufacturers. 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, the Participating Manufacturers are required to make annual payments of $9,000,000 (subject to applicable adjustments, offsets and reductions). 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 Participating Manufacturer and are not the responsibility of any parent or affiliate of a Participating Manufacturer. | ||||||||||||||||||||||||
Liggett has no payment obligations under the MSA except to the extent its market share exceeds a market share exemption of 1.63% (approximately 1.65% if the "gross" vs "net" settlement, described below, is not concluded) 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 3.3% of the total cigarettes sold in the United States in 2013. 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 31, 2013, Liggett pre-paid $95,000 of its 2013 MSA obligation. On April 15, 2014, Liggett and Vector Tobacco paid approximately $16,300 for the balance of their 2013 MSA obligation. | ||||||||||||||||||||||||
Certain MSA Disputes | ||||||||||||||||||||||||
NPM Adjustment. In March 2006, an economic consulting firm selected pursuant to the MSA determined that the MSA was a “significant factor contributing to” the loss of market share of Participating Manufacturers, to non-participating manufacturers, for 2003. This is known as the “NPM Adjustment.” The economic consulting firm subsequently rendered the same decision with respect to 2004 and 2005. In March 2009, a different economic consulting firm made the same determination for 2006. As a result, the manufacturers are entitled to potential NPM Adjustments to each of their 2003 - 2006 MSA payments. The Participating Manufacturers are also entitled to potential NPM Adjustments to their 2007 - 2013 payments pursuant to agreements entered into between the OPMs and the Settling States under which the OPMs agreed to make certain payments for the benefit of the Settling States, in exchange for which the Settling States stipulated that the MSA was a “significant factor contributing to” the loss of market share of Participating Manufacturers for each of those years. A Settling State that has diligently enforced its qualifying escrow statute in the year in question may be able to avoid allocation of the NPM Adjustment to the payments made by the manufacturers for the benefit of that Settling State. | ||||||||||||||||||||||||
For 2003 through 2013, 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 paid subject to dispute, withheld payment or paid into a disputed payment account the amounts associated with these NPM Adjustments. | ||||||||||||||||||||||||
Notwithstanding provisions in the MSA requiring arbitration, litigation was filed in 49 Settling States involving the application of the NPM Adjustment for 2003 and whether it was to be determined through litigation or arbitration. These actions related to the potential NPM Adjustment for 2003, which the independent auditor under the MSA previously determined to be as much as $1,200,000 for all Participating Manufacturers. All but one of the 48 courts that decided the issue ruled that the 2003 NPM Adjustment dispute was arbitrable. | ||||||||||||||||||||||||
In response to a proposal from the OPMs and many of the SPMs, 45 of the Settling States, representing approximately 90% of the allocable share of the Settling States, entered into an agreement providing for a nationwide arbitration of the dispute with respect to the NPM Adjustment for 2003. In exchange the OPMs and SPMs agreed to a 20% reduction in amounts recovered for the NPM Adjustment for 2003. In June 2010, the three person arbitration panel was selected. In November 2011, the Participating Manufacturers advised the arbitration panel that they were not contesting diligent enforcement of 16 Settling States for 2003. Substantive hearings commenced in April 2012 and were completed in June 2013. | ||||||||||||||||||||||||
In December 2012, the Participating Manufacturers entered into a “term sheet” with 20 Settling States setting out terms for settlement of the NPM Adjustment for 2003 through 2012 and addressing the NPM Adjustment with respect to those states for future years. Certain of the non-settling states objected to the settlement. In March 2013, the arbitration panel entered a Stipulated Partial Settlement and Award which, among other things, overruled the objections of the non-settling states and directed the independent auditor to implement certain terms of the term sheet effective with the April 15, 2013 MSA payments. In May 2013, two additional states joined the settlement. In June 2014, an additional two states joined. Several non-settling states are attempting to vacate the settlement award by filing state court actions. In Idaho, a trial court denied that state's motion to vacate, and the state noticed an appeal of that denial. In Colorado, a trial court also denied that state’s motion to vacate; Colorado has not filed an appeal, and the time period for appeal has passed. Although certain terms of the settlement were implemented by the independent auditor on April 15, 2013, no assurance can be given as to the ultimate outcome of the non-settling states' challenges. | ||||||||||||||||||||||||
As a result of the settlement, in the first quarter of 2013 Liggett and Vector Tobacco recognized income of $5,602. Following the additional two states joining the settlement in May 2013, Liggett and Vector Tobacco recognized an additional $1,345 of income in the second quarter of 2013. Finally, Liggett and Vector Tobacco received credits of $1,733 in April 2014 from these settling states related to the 2013 NPM Adjustment. The remaining NPM Adjustment accrual of $25,809 at June 30, 2014 relates to the disputed amounts Liggett and Vector Tobacco have withheld from the non-settling states for 2004 through 2010, which may be subject to payment, with interest, if Liggett and Vector Tobacco lose the disputes for those years. Approximately $24,400 currently remains in the disputed payments accounts relating to the 2011, 2012 and 2013 NPM Adjustment dispute with these non-settling states. | ||||||||||||||||||||||||
In September 2013, the panel issued its decisions with respect to the 15 states that did not enter into the Stipulated Partial Settlement and Award, finding that six states did not diligently enforce their MSA escrow statutes in 2003. As a result of this ruling Liggett recognized income of $5,987 including interest, in the third quarter of 2013. All six of the states that were found to be non-diligent filed motions in state court seeking to vacate or reduce the amount of the arbitration award. A trial court in one of those states, Pennsylvania, rejected the state's motion to vacate the award but granted its motion to reduce the award. As a result, in April 2014, Liggett received a credit in the amount of $6,441 for the 2003 NPM Adjustment (as calculated by the independent auditor). It subsequently reimbursed the six states 20% of that credit, pursuant to the agreement discussed above, bringing its net recovery to $5,152, which is approximately $1,315 lower than the amount Liggett believes it’s entitled to. Subsequent to the April 15, 2014 MSA payment date, a state court in Missouri ruled similarly to the ruling in Pennsylvania. As such, Liggett's 2003 NPM credit adjustment could be reduced by an additional $521. In June 2014, Kentucky and Indiana agreed to settle the dispute. As a result, Liggett recognized income of approximately $1,400 in the second quarter of 2014. The Participating Manufacturers, including Liggett, appealed the Pennsylvania and Missouri decisions. If Liggett is unsuccessful in its appeals or if other states are successful with respect to any such motions, the amount of the 2003 NPM Adjustment and any interest or earnings to which Liggett is entitled could be lower than the amounts described above and Liggett would have to pay the difference. | ||||||||||||||||||||||||
Disputes over the NPM Adjustments for 2004-2013 remain to be arbitrated with the states that have not joined the settlement. | ||||||||||||||||||||||||
"Gross" v. "Net" Calculations. In October 2004, the independent auditor notified Liggett and all other Participating Manufacturers that their payment obligations under the MSA, dating from the agreement’s execution in late 1998, had been re-calculated using “net” units, rather than “gross” units (which had been used since 1999). Liggett objected to this retroactive change and disputed the change in methodology. | ||||||||||||||||||||||||
The Company estimated that Liggett’s future annual MSA payments would have been at least approximately $2,500 higher under the revised method of calculation because the proposed change from “gross” to “net” units would lower Liggett’s grandfathered market share exemption under the MSA. | ||||||||||||||||||||||||
In December 2012, the parties arbitrated the dispute before a panel of three arbitrators. In February 2013, the arbitrators granted the relief sought by Liggett. The arbitrators ruled that the limitations provisions of the MSA precluded the independent auditor from recalculating Liggett's grandfathered market share exemption or Liggett's payment obligations beyond the last four years. The arbitrators further ruled that, for purposes of calculating Liggett's payment obligations for the applicable years, Liggett's market share, calculated on a net basis, should be increased by a factor of 1.25%. Liggett filed a motion seeking correction of the part of the arbitrators' decision that would require the 1.25% increase in Liggett's market share. The states objected to Liggett's motion and sought additional relief from the panel declaring that any adjustment ordered by the panel is not limited by the four years limitations set forth in the MSA. If the arbitrator's ruling is not modified, Liggett would be required to pay approximately $19,300. If the relief requested by the states is granted, Liggett could be required to pay up to approximately $40,900. | ||||||||||||||||||||||||
In June 2013, Liggett and a negotiating group on behalf of the Settling States reached an agreement in principle to resolve all disputes regarding "gross" v. "net", subject to definitive documentation and approval thereof by each Settling State. The proposed settlement would require Liggett to pay $8,500 to the Settling States and reduce its market share exemption from 1.645% to 1.63% starting in 2013 and for all years thereafter. In exchange, the Settling States would release Liggett from all claims in connection with the "gross" v. "net" dispute. The Company fully accrued the proposed settlement payment of $8,500 in 2013. In May 2014, the Settling States were advised by the OPMs that they would not waive their alleged most favored nation rights in connection with the proposed settlement. As a result, Liggett and the Settling States advised the arbitration panel that it will be necessary for the panel to rule on the motions filed by the parties. A hearing has been scheduled for September 16, 2014. There can be no assurance that the settlement will be concluded and if it is not, that Liggett will be successful in seeking modification of the award by the panel or that Liggett will not be required to make additional payments, which could adversely affect the Company’s consolidated financial position, results of operations and cash flows. | ||||||||||||||||||||||||
Litigation Challenging the MSA. Litigation challenging the validity of the MSA, including claims that the MSA violates antitrust laws, has not been successful to date, although several cases are pending. Participating Manufacturers are not typically named as defendants in these cases. | ||||||||||||||||||||||||
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 each of these four states' settlements with United States Tobacco Company, Liggett's payment obligations to those states had been 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. In 2003 and 2004, the Attorneys General for Florida, Mississippi and Texas advised Liggett that they believed that Liggett had failed to make certain required payments under the respective settlement agreements with these states. In December 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. The payments in years 12 – 21 will be subject to an inflation adjustment. These payments are in lieu of any other payments allegedly due to Florida under the original settlement agreement. In February 2012, Mississippi provided Liggett with a 60-day notice that the state intended to pursue its remedies if Liggett did not cure the alleged defaults. Liggett responded to Mississippi's letter denying the existence of any defaults. There can be no assurance that Liggett will be able to resolve the matters with Texas and Mississippi or that Liggett will not be required to make additional payments which could adversely affect the Company's consolidated financial position, results of operations and cash flows. | ||||||||||||||||||||||||
Cautionary Statement. Management is not able to 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 several Engle progeny cases and in 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 7, 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, 2014 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 at January 1, 2014 | $ | 25,348 | $ | 59,310 | $ | 84,658 | $ | 27,571 | $ | 27,058 | $ | 54,629 | ||||||||||||
Expenses | 52,510 | 1,769 | 54,279 | — | — | — | ||||||||||||||||||
NPM Settlement adjustment | — | — | — | (1,419 | ) | — | (1,419 | ) | ||||||||||||||||
Change in MSA obligations capitalized as inventory | 151 | — | 151 | — | — | — | ||||||||||||||||||
Payments | (16,343 | ) | (60,201 | ) | (76,544 | ) | — | — | — | |||||||||||||||
Reclassification from non-current liabilities | 343 | 3,575 | 3,918 | (343 | ) | (3,575 | ) | (3,918 | ) | |||||||||||||||
Interest on withholding | — | 83 | 83 | — | 893 | 893 | ||||||||||||||||||
Balance as of June 30, 2014 | $ | 62,009 | $ | 4,536 | $ | 66,545 | $ | 25,809 | $ | 24,376 | $ | 50,185 | ||||||||||||
The activity in the Company's accruals for the MSA and tobacco litigation for the six months ended June 30, 2013 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 at January 1, 2013 | $ | 32,970 | $ | 1,470 | $ | 34,440 | $ | 52,639 | $ | 1,862 | $ | 54,501 | ||||||||||||
Expenses | 56,907 | 147 | 57,054 | — | — | — | ||||||||||||||||||
NPM Settlement adjustment | — | — | — | (13,489 | ) | — | (13,489 | ) | ||||||||||||||||
Change in MSA obligations capitalized as inventory | 364 | — | 364 | — | — | — | ||||||||||||||||||
Payments | (34,077 | ) | (1,577 | ) | (35,654 | ) | — | — | — | |||||||||||||||
Reclassification from non-current liabilities | 3,521 | 223 | 3,744 | (3,520 | ) | (223 | ) | (3,743 | ) | |||||||||||||||
Interest on withholding | — | 18 | 18 | — | 99 | 99 | ||||||||||||||||||
Balance as of June 30, 2013 | $ | 59,685 | $ | 281 | $ | 59,966 | $ | 35,630 | $ | 1,738 | $ | 37,368 | ||||||||||||
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 Vector Brands entered into an agreement with a subsidiary of the American Wholesale Marketers 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. The agreement expires in February 2016. 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. To secure its potential obligations under the agreement, Liggett Vector Brands posted a $100 letter of credit and agreed to fund up to an additional $400. In the third quarter of 2013, Liggett paid $83 for obligations under this program, and therefore, is only committed to fund an additional $317 over the letter of credit. The Company believes the fair value of Liggett Vector Brands’ obligation under the agreement was immaterial at June 30, 2014. | ||||||||||||||||||||||||
There may be several other proceedings, lawsuits and claims pending against the Company and certain of its consolidated subsidiaries unrelated to tobacco or tobacco product liability. Management is of the opinion that the liabilities, if any, ultimately resulting from such other proceedings, lawsuits and claims should not materially affect the Company’s financial position, results of operations or cash flows. |
Income_Taxes
Income Taxes | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
INCOME TAXES | ||||||||||||||||
The Company's provision for income taxes in interim periods is based on an estimated annual effective income tax rate derived, in part, from estimated annual pre-tax results from ordinary operations. The annual effective income tax rate is reviewed and, if necessary, adjusted on a quarterly basis. | ||||||||||||||||
The Company's income tax expense consisted of the following: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income before provision for income taxes | $ | 19,132 | $ | 23,528 | $ | 25,603 | $ | 21,512 | ||||||||
Income tax expense using estimated annual effective income tax rate | 6,279 | 9,575 | 8,404 | 8,755 | ||||||||||||
Changes in effective tax rates | (178 | ) | 321 | — | — | |||||||||||
Impact of discrete items, net | — | 121 | 639 | 927 | ||||||||||||
Income tax expense | $ | 6,101 | $ | 10,017 | $ | 9,043 | $ | 9,682 | ||||||||
The discrete item for the six months ended June 30, 2014 is primarily related to an increase in the blended state tax rate that resulted in the Company's revaluation of its deferred taxes and the results of a recent state income tax audit. The discrete item for the six months ended June 30, 2013 is related to the impact of the Company's loss on the extinguishment of the 11% Senior Secured Notes due to the differences in the Company's marginal tax rate and its anticipated effective annual income tax rate at June 30, 2013 and the accrual of an unrecognized tax benefit. |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Investments and Fair Value Measurements | ' | ||||||||||||||||
INVESTMENTS AND FAIR VALUE MEASUREMENTS | |||||||||||||||||
The Company's recurring financial assets and liabilities subject to fair value measurements are as follows: | |||||||||||||||||
Fair Value Measurements as of June 30, 2014 | |||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 335,332 | $ | 335,332 | $ | — | $ | — | |||||||||
Certificates of deposit | 3,252 | — | 3,252 | — | |||||||||||||
Bonds | 5,093 | 5,093 | — | — | |||||||||||||
Investment securities available for sale | — | ||||||||||||||||
Equity securities | 123,034 | 122,262 | 772 | — | |||||||||||||
Mutual funds invested in fixed income securities | 60,522 | 60,522 | — | — | |||||||||||||
Fixed income securities | |||||||||||||||||
U.S. Government securities | 11,197 | — | 11,197 | — | |||||||||||||
Corporate securities | 30,648 | 6,744 | 23,904 | — | |||||||||||||
U.S. mortgage backed securities | 214 | — | 214 | — | |||||||||||||
Commercial mortgage-backed securities | 6,645 | — | 6,645 | — | |||||||||||||
U.S. asset backed securities | 5,061 | — | 5,061 | — | |||||||||||||
U.S. Government agencies | 191 | — | 191 | — | |||||||||||||
Index-linked U.S. bonds | 255 | — | 255 | — | |||||||||||||
Total fixed income securities | 54,211 | 6,744 | 47,467 | — | |||||||||||||
Warrants (1) | 1,647 | — | — | 1,647 | |||||||||||||
Total | $ | 583,091 | $ | 529,953 | $ | 51,491 | $ | 1,647 | |||||||||
Liabilities: | |||||||||||||||||
Fair value of derivatives embedded within convertible debt | $ | 191,554 | $ | — | $ | — | $ | 191,554 | |||||||||
-1 | Warrants include 1,000,000 of LTS Warrants received on November 4, 2011 which were carried at $1,647 as of June 30, 2014 and are included in "Other assets". The Company recognized a loss of $111 for the six months ended June 30, 2014 related to the change in fair value of the Warrants. | ||||||||||||||||
Fair Value Measurements as of December 31, 2013 | |||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 130,733 | $ | 130,733 | $ | — | $ | — | |||||||||
Certificates of deposit | 2,961 | — | 2,961 | — | |||||||||||||
Bonds | 5,337 | 5,337 | — | — | |||||||||||||
Investment securities available for sale | — | ||||||||||||||||
Equity securities | 118,474 | 117,737 | 737 | — | |||||||||||||
Fixed income securities | — | ||||||||||||||||
U.S. Government securities | 13,990 | — | 13,990 | — | |||||||||||||
Corporate securities | 29,923 | 6,497 | 23,426 | — | |||||||||||||
U.S. mortgage backed securities | 495 | — | 495 | — | |||||||||||||
Commercial mortgage-backed securities | 6,822 | — | 6,822 | — | |||||||||||||
U.S. asset backed securities | 2,081 | — | 2,081 | — | |||||||||||||
Index-linked U.S. bonds | 749 | — | 749 | — | |||||||||||||
Total fixed income securities | 54,060 | 6,497 | 47,563 | — | |||||||||||||
Warrants (1) | 1,935 | — | — | 1,935 | |||||||||||||
Total | $ | 313,500 | $ | 260,304 | $ | 51,261 | $ | 1,935 | |||||||||
Liabilities: | |||||||||||||||||
Fair value of derivatives embedded within convertible debt | $ | 112,062 | $ | — | $ | — | $ | 112,062 | |||||||||
-1 | Warrants include 1,000,000 of LTS Warrants received on November 4, 2011 which were carried at $1,758 as of December 31, 2013 and are included in "Other assets". The Company recognized income of $65 for the six months ended June 30, 2013 related to the change in fair value of the Warrants. | ||||||||||||||||
The fair value of the Level 2 certificates of deposit are based on prices posted by the financial institutions. The fair value of investment securities available for sale included in Level 1 are based on quoted market prices from various stock exchanges. The Level 2 investment securities available for sale are equity securities based on quoted market prices of securities that are thinly traded and debt securities based on evaluated prices using observable, market-based inputs. | |||||||||||||||||
The fair value of derivatives embedded within convertible debt was derived using a valuation model and 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 debt rate of the 5.50% Convertible Notes 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 value of the embedded derivatives is based on changes in implied interest rates of the convertible debt, the Company's stock price, stock volatility as well as projections of future cash and stock dividends over the term of the debt. The interest rate component of the value of the embedded derivative is computed by calculating an equivalent non-convertible, unsecured and subordinated borrowing cost. This rate is determined by calculating the implied rate on the Company's 2019 Convertible Notes when removing the embedded option value within the convertible security. This rate is based upon market observable inputs and influenced by the Company's stock price, convertible bond trading price, risk free interest rates and stock volatility. | |||||||||||||||||
The Company recognized income of $320 and $5,499 for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
The fair value of the warrants was derived using the Black-Scholes model and has been classified as Level 3. The assumptions used under the Black-Scholes model in computing the fair value of the warrants are based on contractual term of the warrants, volatility of the underlying stock based on the historical quoted prices of the underlying stock, assumed future dividend payments and a risk-free rate of return. | |||||||||||||||||
The unobservable inputs related to the valuations of the Level 3 assets and liabilities are as follows at June 30, 2014: | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
Fair Value at | |||||||||||||||||
June 30, | Valuation Technique | Unobservable Input | Range (Actual) | ||||||||||||||
2014 | |||||||||||||||||
Warrants | $ | 1,647 | Option model | Stock price | $ | 3.15 | |||||||||||
Exercise price | $ | 1.68 | |||||||||||||||
Term (in years) | 2.4 | ||||||||||||||||
Volatility | 45.83 | % | |||||||||||||||
Dividend rate | — | ||||||||||||||||
Risk-free return | 0.7 | % | |||||||||||||||
Fair value of derivatives embedded within convertible debt | $ | 191,554 | Discounted cash flow | Assumed annual stock dividend | 5 | % | |||||||||||
Assumed annual cash dividend | $ | 1.6 | |||||||||||||||
Stock price | $ | 20.68 | |||||||||||||||
Convertible trading price | 107.19 | % | |||||||||||||||
Volatility | 16 | % | |||||||||||||||
Implied credit spread | 5.5% - 6.5% (6.0%) | ||||||||||||||||
The unobservable inputs related to the valuations of the Level 3 assets and liabilities are as follows at December 31, 2013: | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
Fair Value at | |||||||||||||||||
December 31, | Valuation Technique | Unobservable Input | Range (Actual) | ||||||||||||||
2013 | |||||||||||||||||
Warrants | $ | 1,935 | Option model | Stock price | $ | 3.13 | |||||||||||
Exercise price | $ | 1.68 | |||||||||||||||
Term (in years) | 2.8 | ||||||||||||||||
Volatility | 53.82 | % | |||||||||||||||
Dividend rate | — | ||||||||||||||||
Risk-free return | 0.72 | % | |||||||||||||||
Fair value of derivatives embedded within convertible debt | $ | 112,062 | Discounted cash flow | Assumed annual stock dividend | 5 | % | |||||||||||
Assumed annual cash dividend | $ | 1.6 | |||||||||||||||
Stock price | $ | 16.37 | |||||||||||||||
Convertible trading price | 118.7 | % | |||||||||||||||
Volatility | 18 | % | |||||||||||||||
Implied credit spread | 7.5% - 8.5% (8.0%) | ||||||||||||||||
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 or acquisitions. The Company had no nonrecurring nonfinancial assets subject to fair value measurements as of June 30, 2014 and December 31, 2013. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||
The Company's significant business segments for the three and six months ended June 30, 2014 and 2013 were Tobacco and Real Estate. The Tobacco segment consists of the manufacture and sale of conventional cigarettes. The Real Estate segment includes the Company’s investment in New Valley LLC, which includes Douglas Elliman, Escena, Indian Creek and investments in non-consolidated real estate businesses. Corporate and other includes the operations of the Company's e-cigarette business ("Zoom"). 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 for the three and six months ended June 30, 2014 and 2013 follows: | |||||||||||||||||
Real | Corporate | ||||||||||||||||
Tobacco | Estate | and Other | Total | ||||||||||||||
Three months ended June 30, 2014 | |||||||||||||||||
Revenues | $ | 250,556 | $ | 153,488 | $ | 2,569 | $ | 406,613 | |||||||||
Operating income (loss) | 51,506 | (1 | ) | 15,901 | (7,099 | ) | 60,308 | ||||||||||
Equity loss from non-consolidated real estate businesses | — | (1,808 | ) | — | (1,808 | ) | |||||||||||
Depreciation and amortization | 2,588 | 2,622 | 252 | 5,462 | |||||||||||||
Three months ended June 30, 2013 | |||||||||||||||||
Revenues | $ | 249,120 | $ | 7,106 | $ | — | $ | 256,226 | |||||||||
Operating income (loss) | 48,294 | (2) | (407 | ) | (3,647 | ) | 44,240 | ||||||||||
Equity income from non-consolidated real estate businesses | — | 6,804 | — | 6,804 | |||||||||||||
Depreciation and amortization | 2,368 | 152 | 117 | 2,637 | |||||||||||||
Six months ended June 30, 2014 | |||||||||||||||||
Revenues | $ | 483,948 | $ | 261,532 | $ | 8,369 | $ | 753,849 | |||||||||
Operating income (loss) | 94,402 | (3 | ) | 20,645 | (12,017 | ) | 103,030 | ||||||||||
Equity loss from non-consolidated real estate businesses | — | (256 | ) | — | (256 | ) | |||||||||||
Depreciation and amortization | 5,081 | 6,969 | 504 | 12,554 | |||||||||||||
Capital expenditures | 6,563 | 3,570 | 11 | 10,144 | |||||||||||||
Six months ended June 30, 2013 | |||||||||||||||||
Revenues | $ | 489,522 | $ | 12,873 | $ | — | $ | 502,395 | |||||||||
Operating income (loss) | 95,454 | (4) | (321 | ) | (7,797 | ) | 87,336 | ||||||||||
Equity income from non-consolidated real estate businesses | — | 7,285 | — | 7,285 | |||||||||||||
Depreciation and amortization | 4,753 | 280 | 200 | 5,233 | |||||||||||||
Capital expenditures | 3,319 | 429 | 2,247 | 5,995 | |||||||||||||
(1) Operating income includes $1,419 of income from NPM Settlement. | |||||||||||||||||
(2) Operating income includes $1,345 of income from NPM Settlement. | |||||||||||||||||
(3) Operating income includes $1,419 of income from NPM Settlement and $1,500 of litigation settlement charges. | |||||||||||||||||
(4) Operating income includes $6,947 of income from NPM Settlement. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | ||||||||||||||||||||
The accompanying condensed consolidating financial information has been prepared and presented pursuant to Securities and Exchange Commission Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered”. Each of the subsidiary guarantors are 100% owned, directly or indirectly, by the Company, and all guarantees are joint and several and subject to certain automatic release provisions. Relief from the financial statement requirements under Rule 3-10 is being provided because the Company's guarantee release provisions are considered customary. Such release provisions are as follows: | ||||||||||||||||||||
• | the sale or other disposition of all or substantially all of the assets or all of the capital stock of any subsidiary guarantor; and | |||||||||||||||||||
• | the satisfaction of the requirements for legal defeasance or the satisfaction and discharge of the indenture. | |||||||||||||||||||
The Company's investments in its consolidated subsidiaries are presented under the equity method of accounting. | ||||||||||||||||||||
The indenture of the 7.75% Senior Secured Notes contains covenants that restrict the payment of dividends by the Company if the Company's consolidated earnings before interest, taxes, depreciation and amortization, as defined in the indenture, for the most recently ended four full quarters is less than $75,000 and the indenture also restricts the incurrence of debt if the Company's Leverage Ratio and its Secured Leverage Ratio, as defined in the indenture, exceed 3.0 and 1.5, respectively. | ||||||||||||||||||||
At June 30, 2014, management believed that the Company was in compliance with all covenants under the indentures of the 7.75% Senior Secured Notes. | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
ASSETS: | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 398,119 | $ | 15,086 | $ | 93,218 | $ | — | $ | 506,423 | ||||||||||
Investment securities available for sale | 178,626 | 59,141 | — | — | 237,767 | |||||||||||||||
Accounts receivable - trade, net | — | 12,282 | 3,471 | — | 15,753 | |||||||||||||||
Intercompany receivables | 516 | 20 | — | (536 | ) | — | ||||||||||||||
Inventories | — | 108,257 | — | — | 108,257 | |||||||||||||||
Deferred income taxes | 23,164 | 5,100 | — | — | 28,264 | |||||||||||||||
Income taxes receivable, net | 21,428 | — | — | (8,659 | ) | 12,769 | ||||||||||||||
Restricted assets | — | 1,141 | 1,414 | — | 2,555 | |||||||||||||||
Other current assets | 724 | 7,988 | 19,820 | — | 28,532 | |||||||||||||||
Total current assets | 622,577 | 209,015 | 117,923 | (9,195 | ) | 940,320 | ||||||||||||||
Property, plant and equipment, net | 3,148 | 56,644 | 20,540 | — | 80,332 | |||||||||||||||
Real estate held for sale, net | — | — | 10,669 | — | 10,669 | |||||||||||||||
Long-term investments accounted for at cost | 26,541 | — | 698 | — | 27,239 | |||||||||||||||
Long-term investments accounted for under the equity method | 17,842 | — | — | — | 17,842 | |||||||||||||||
Investments in non-consolidated real estate businesses | — | — | 133,629 | — | 133,629 | |||||||||||||||
Investments in consolidated subsidiaries | 447,514 | — | — | (447,514 | ) | — | ||||||||||||||
Restricted assets | 1,596 | 9,985 | — | — | 11,581 | |||||||||||||||
Deferred income taxes | 52,448 | 8,488 | 3,776 | — | 64,712 | |||||||||||||||
Goodwill and other intangible assets, net | — | 107,511 | 161,736 | — | 269,247 | |||||||||||||||
Prepaid pension costs | — | 27,663 | — | — | 27,663 | |||||||||||||||
Other assets | 47,780 | 10,494 | 1,154 | — | 59,428 | |||||||||||||||
Total assets | $ | 1,219,446 | $ | 429,800 | $ | 450,125 | $ | (456,709 | ) | $ | 1,642,662 | |||||||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY: | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of notes payable and long-term debt | $ | 108,566 | $ | 33,029 | $ | 213 | $ | — | $ | 141,808 | ||||||||||
Current portion of fair value of derivatives embedded within convertible debt | 7,768 | — | — | — | 7,768 | |||||||||||||||
Current portion of employee benefits | — | 939 | — | — | 939 | |||||||||||||||
Accounts payable | 932 | 4,721 | 4,527 | — | 10,180 | |||||||||||||||
Intercompany payables | — | — | 536 | (536 | ) | — | ||||||||||||||
Accrued promotional expenses | — | 20,040 | — | — | 20,040 | |||||||||||||||
Income taxes payable, net | — | 11,815 | — | (8,659 | ) | 3,156 | ||||||||||||||
Accrued excise and payroll taxes payable, net | — | 16,809 | — | — | 16,809 | |||||||||||||||
Litigation accruals and current payments due under the Master Settlement Agreement | — | 66,545 | — | — | 66,545 | |||||||||||||||
Deferred income taxes | 37,862 | 13,571 | — | — | 51,433 | |||||||||||||||
Accrued interest | 29,926 | — | — | — | 29,926 | |||||||||||||||
Other current liabilities | 3,671 | 8,699 | 19,338 | — | 31,708 | |||||||||||||||
Total current liabilities | 188,725 | 176,168 | 24,614 | (9,195 | ) | 380,312 | ||||||||||||||
Notes payable, long-term debt and other obligations, less current portion | 842,458 | 10,882 | 329 | — | 853,669 | |||||||||||||||
Fair value of derivatives embedded within convertible debt | 183,786 | — | — | — | 183,786 | |||||||||||||||
Non-current employee benefits | 32,195 | 16,369 | — | — | 48,564 | |||||||||||||||
Deferred income taxes | 78,506 | 39,112 | 35,863 | — | 153,481 | |||||||||||||||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 1,296 | 50,597 | 2,070 | — | 53,963 | |||||||||||||||
Total liabilities | 1,326,966 | 293,128 | 62,876 | (9,195 | ) | 1,673,775 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders' (deficiency) equity attributed to Vector Group Ltd. | (107,520 | ) | 136,672 | 310,842 | (447,514 | ) | (107,520 | ) | ||||||||||||
Non-controlling interest | — | — | 76,407 | — | 76,407 | |||||||||||||||
Total stockholders' (deficiency) equity | (107,520 | ) | 136,672 | 387,249 | (447,514 | ) | (31,113 | ) | ||||||||||||
Total liabilities and stockholders' deficiency | $ | 1,219,446 | $ | 429,800 | $ | 450,125 | $ | (456,709 | ) | $ | 1,642,662 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
ASSETS: | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 151,342 | $ | 11,812 | $ | 71,312 | $ | — | $ | 234,466 | ||||||||||
Investment securities available for sale | 114,886 | 57,648 | — | — | 172,534 | |||||||||||||||
Accounts receivable - trade, net | — | 10,154 | 2,005 | — | 12,159 | |||||||||||||||
Intercompany receivables | 509 | — | — | (509 | ) | — | ||||||||||||||
Inventories | — | 93,496 | — | — | 93,496 | |||||||||||||||
Deferred income taxes | 45,578 | 4,901 | — | — | 50,479 | |||||||||||||||
Income taxes receivable, net | — | 10,447 | — | (10,447 | ) | — | ||||||||||||||
Restricted assets | — | 1,060 | 725 | — | 1,785 | |||||||||||||||
Other current assets | 513 | 12,579 | 10,300 | — | 23,392 | |||||||||||||||
Total current assets | 312,828 | 202,097 | 84,342 | (10,956 | ) | 588,311 | ||||||||||||||
Property, plant and equipment, net | 3,641 | 55,093 | 20,524 | — | 79,258 | |||||||||||||||
Real estate held for sale, net | — | — | 20,911 | — | 20,911 | |||||||||||||||
Long-term investments accounted for at cost | 20,041 | — | 747 | — | 20,788 | |||||||||||||||
Long-term investments accounted for under the equity method | 8,595 | — | — | — | 8,595 | |||||||||||||||
Investments in non-consolidated real estate businesses | — | — | 128,202 | — | 128,202 | |||||||||||||||
Investments in consolidated subsidiaries | 410,442 | — | — | (410,442 | ) | — | ||||||||||||||
Restricted assets | 1,895 | 10,086 | — | — | 11,981 | |||||||||||||||
Deferred income taxes | 35,000 | 12,766 | 3,708 | — | 51,474 | |||||||||||||||
Goodwill and other intangible assets, net | — | 107,511 | 163,600 | — | 271,111 | |||||||||||||||
Prepaid pension costs | — | 26,080 | — | — | 26,080 | |||||||||||||||
Other assets | 38,374 | 10,126 | 5,053 | — | 53,553 | |||||||||||||||
Total assets | $ | 830,816 | $ | 423,759 | $ | 427,087 | $ | (421,398 | ) | $ | 1,260,264 | |||||||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY: | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of notes payable and long-term debt | $ | 112,275 | $ | 39,013 | $ | 289 | $ | — | $ | 151,577 | ||||||||||
Current portion of fair value of derivatives embedded within convertible debt | 19,128 | — | — | — | 19,128 | |||||||||||||||
Current portion of employee benefits | — | 939 | — | — | 939 | |||||||||||||||
Accounts payable | 1,509 | 4,136 | 4,615 | — | 10,260 | |||||||||||||||
Intercompany payables | — | 39 | 470 | (509 | ) | — | ||||||||||||||
Accrued promotional expenses | — | 18,655 | — | — | 18,655 | |||||||||||||||
Income taxes payable, net | 16,870 | — | — | (10,447 | ) | 6,423 | ||||||||||||||
Accrued excise and payroll taxes payable, net | — | 11,621 | — | — | 11,621 | |||||||||||||||
Litigation accruals and current payments due under the Master Settlement Agreement | — | 84,658 | — | — | 84,658 | |||||||||||||||
Deferred income taxes | 32,309 | 13,425 | — | — | 45,734 | |||||||||||||||
Accrued interest | 21,968 | — | — | — | 21,968 | |||||||||||||||
Other current liabilities | 6,103 | 10,495 | 17,549 | — | 34,147 | |||||||||||||||
Total current liabilities | 210,162 | 182,981 | 22,923 | (10,956 | ) | 405,110 | ||||||||||||||
Notes payable, long-term debt and other obligations, less current portion | 524,182 | 12,573 | 4,011 | — | 540,766 | |||||||||||||||
Fair value of derivatives embedded within convertible debt | 92,934 | — | — | — | 92,934 | |||||||||||||||
Non-current employee benefits | 31,462 | 16,455 | — | — | 47,917 | |||||||||||||||
Deferred income taxes | 65,759 | 37,602 | 34,289 | — | 137,650 | |||||||||||||||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 1,353 | 54,924 | 1,219 | — | 57,496 | |||||||||||||||
Total liabilities | 925,852 | 304,535 | 62,442 | (10,956 | ) | 1,281,873 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders' (deficiency) equity attributed to Vector Group Ltd. | (95,036 | ) | 119,224 | 291,218 | (410,442 | ) | (95,036 | ) | ||||||||||||
Non-controlling interest | — | — | 73,427 | — | 73,427 | |||||||||||||||
Total stockholders' (deficiency) equity | (95,036 | ) | 119,224 | 364,645 | (410,442 | ) | (21,609 | ) | ||||||||||||
Total liabilities and stockholders' deficiency | $ | 830,816 | $ | 423,759 | $ | 427,087 | $ | (421,398 | ) | $ | 1,260,264 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Revenues | $ | — | $ | 253,125 | $ | 153,488 | $ | — | $ | 406,613 | ||||||||||
Expenses: | ||||||||||||||||||||
Cost of sales | — | 181,517 | 97,765 | — | 279,282 | |||||||||||||||
Operating, selling, administrative and general expenses | 4,933 | 22,190 | 39,900 | — | 67,023 | |||||||||||||||
Management fee expense | — | 2,468 | — | (2,468 | ) | — | ||||||||||||||
Operating (loss) income | (4,933 | ) | 46,950 | 15,823 | 2,468 | 60,308 | ||||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest expense | (43,190 | ) | (1,284 | ) | (3 | ) | 294 | (44,183 | ) | |||||||||||
Change in fair value of derivatives embedded within convertible debt | 1,970 | — | — | — | 1,970 | |||||||||||||||
Acceleration of interest expense related to debt conversion | (439 | ) | — | — | — | (439 | ) | |||||||||||||
Equity loss from non-consolidated real estate businesses | — | — | (1,808 | ) | — | (1,808 | ) | |||||||||||||
Equity loss on long-term investments | (273 | ) | — | — | — | (273 | ) | |||||||||||||
Loss on sale of investment securities available for sale | (18 | ) | — | — | — | (18 | ) | |||||||||||||
Equity income in consolidated subsidiaries | 32,408 | — | — | (32,408 | ) | — | ||||||||||||||
Management fee income | 2,468 | — | — | (2,468 | ) | — | ||||||||||||||
Other, net | 1,068 | 224 | 2,577 | (294 | ) | 3,575 | ||||||||||||||
(Loss) income before provision for income taxes | (10,939 | ) | 45,890 | 16,589 | (32,408 | ) | 19,132 | |||||||||||||
Income tax benefit (expense) | 18,864 | (19,716 | ) | (5,249 | ) | — | (6,101 | ) | ||||||||||||
Net income | 7,925 | 26,174 | 11,340 | (32,408 | ) | 13,031 | ||||||||||||||
Net income attributed to non-controlling interest | — | — | (5,106 | ) | — | (5,106 | ) | |||||||||||||
Net income attributed to Vector Group Ltd. | 7,925 | 26,174 | 6,234 | (32,408 | ) | 7,925 | ||||||||||||||
Comprehensive income attributed to non-controlling interest | — | — | (5,106 | ) | — | (5,106 | ) | |||||||||||||
Comprehensive income attributed to Vector Group | $ | 9,436 | $ | 25,464 | $ | 6,234 | $ | (31,698 | ) | $ | 9,436 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Revenues | $ | — | $ | 249,120 | $ | 7,106 | $ | — | $ | 256,226 | ||||||||||
Expenses: | ||||||||||||||||||||
Cost of sales | — | 180,430 | 6,015 | — | 186,445 | |||||||||||||||
Operating, selling, administrative and general expenses | 5,506 | 18,455 | 1,580 | — | 25,541 | |||||||||||||||
Management fee expense | — | 2,377 | — | (2,377 | ) | — | ||||||||||||||
Operating (loss) income | (5,506 | ) | 47,858 | (489 | ) | 2,377 | 44,240 | |||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest expense | (31,723 | ) | (360 | ) | (3 | ) | — | (32,086 | ) | |||||||||||
Change in fair value of derivatives embedded within convertible debt | 2,450 | — | — | — | 2,450 | |||||||||||||||
Equity income from non-consolidated real estate businesses | — | — | 6,804 | — | 6,804 | |||||||||||||||
Equity income on long-term investments | 846 | — | — | — | 846 | |||||||||||||||
Loss on sale of investment securities available for sale | (197 | ) | — | — | — | (197 | ) | |||||||||||||
Equity income in consolidated subsidiaries | 32,277 | — | — | (32,277 | ) | — | ||||||||||||||
Management fee income | 2,377 | — | — | (2,377 | ) | — | ||||||||||||||
Other, net | 1,245 | 150 | 76 | — | 1,471 | |||||||||||||||
Income before provision for income taxes | 1,769 | 47,648 | 6,388 | (32,277 | ) | 23,528 | ||||||||||||||
Income tax benefit (expense) | 11,742 | (19,134 | ) | (2,625 | ) | — | (10,017 | ) | ||||||||||||
Net income | 13,511 | 28,514 | 3,763 | (32,277 | ) | 13,511 | ||||||||||||||
Comprehensive income | $ | 14,633 | $ | 27,179 | $ | 3,763 | $ | (30,942 | ) | $ | 14,633 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Revenues | $ | — | $ | 492,317 | $ | 261,532 | $ | — | $ | 753,849 | ||||||||||
Expenses: | ||||||||||||||||||||
Cost of sales | — | 353,230 | 165,089 | — | 518,319 | |||||||||||||||
Operating, selling, administrative and general expenses | 11,216 | 45,375 | 75,909 | — | 132,500 | |||||||||||||||
Management fee expense | — | 4,935 | — | (4,935 | ) | — | ||||||||||||||
Operating (loss) income | (11,216 | ) | 88,777 | 20,534 | 4,935 | 103,030 | ||||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest expense | (77,972 | ) | (2,239 | ) | (37 | ) | 612 | (79,636 | ) | |||||||||||
Change in fair value of derivatives embedded within convertible debt | 320 | — | — | — | 320 | |||||||||||||||
Acceleration of interest expense related to debt conversion | (4,118 | ) | — | — | — | (4,118 | ) | |||||||||||||
Equity loss from non-consolidated real estate businesses | — | — | (256 | ) | — | (256 | ) | |||||||||||||
Equity income on long-term investments | 633 | — | — | — | 633 | |||||||||||||||
Loss on sale of investment securities available for sale | (71 | ) | — | — | — | (71 | ) | |||||||||||||
Equity income in consolidated subsidiaries | 60,126 | — | — | (60,126 | ) | — | ||||||||||||||
Management fee income | 4,935 | — | — | (4,935 | ) | — | ||||||||||||||
Other, net | 1,766 | 484 | 4,063 | (612 | ) | 5,701 | ||||||||||||||
(Loss) income before provision for income taxes | (25,597 | ) | 87,022 | 24,304 | (60,126 | ) | 25,603 | |||||||||||||
Income tax benefit (expense) | 36,102 | (36,355 | ) | (8,790 | ) | — | (9,043 | ) | ||||||||||||
Net income | 10,505 | 50,667 | 15,514 | (60,126 | ) | 16,560 | ||||||||||||||
Net income attributed to non-controlling interest | — | — | (6,055 | ) | — | (6,055 | ) | |||||||||||||
Net income attributed to Vector Group Ltd. | 10,505 | 50,667 | 9,459 | (60,126 | ) | 10,505 | ||||||||||||||
Comprehensive income attributed to non-controlling interest | — | — | (6,055 | ) | — | (6,055 | ) | |||||||||||||
Comprehensive income attributed to Vector Group Ltd. | $ | 17,324 | $ | 50,659 | $ | 9,459 | $ | (60,118 | ) | $ | 17,324 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Revenues | $ | — | $ | 489,522 | $ | 12,873 | $ | — | $ | 502,395 | ||||||||||
Expenses: | ||||||||||||||||||||
Cost of sales | — | 353,386 | 10,236 | — | 363,622 | |||||||||||||||
Operating, selling, administrative and general expenses | 11,382 | 36,949 | 3,106 | — | 51,437 | |||||||||||||||
Management fee expense | — | 4,754 | — | (4,754 | ) | — | ||||||||||||||
Operating (loss) income | (11,382 | ) | 94,433 | (469 | ) | 4,754 | 87,336 | |||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest expense | (64,683 | ) | (772 | ) | (7 | ) | — | (65,462 | ) | |||||||||||
Change in fair value of derivatives embedded within convertible debt | 5,499 | — | — | — | 5,499 | |||||||||||||||
Loss on extinguishment of debt | (21,458 | ) | — | — | — | (21,458 | ) | |||||||||||||
Equity income from non-consolidated real estate businesses | — | — | 7,285 | — | 7,285 | |||||||||||||||
(Loss) gain on sale of investment securities available for sale | (197 | ) | 5,406 | — | — | 5,209 | ||||||||||||||
Equity income on long-term investments | 823 | — | — | — | 823 | |||||||||||||||
Equity income in consolidated subsidiaries | 63,565 | — | — | (63,565 | ) | — | ||||||||||||||
Management fee income | 4,754 | — | — | (4,754 | ) | — | ||||||||||||||
Other, net | 1,947 | 205 | 128 | — | 2,280 | |||||||||||||||
(Loss) income before provision for income taxes | (21,132 | ) | 99,272 | 6,937 | (63,565 | ) | 21,512 | |||||||||||||
Income tax benefit (expense) | 32,962 | (39,791 | ) | (2,853 | ) | — | (9,682 | ) | ||||||||||||
Net income | 11,830 | 59,481 | 4,084 | (63,565 | ) | 11,830 | ||||||||||||||
Comprehensive income | $ | 18,866 | $ | 61,624 | $ | 4,084 | $ | (65,708 | ) | $ | 18,866 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Net cash provided by operating activities | $ | 17,374 | $ | 46,294 | $ | 32,279 | $ | (41,952 | ) | $ | 53,995 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Sale of investment securities | 49,296 | — | — | — | 49,296 | |||||||||||||||
Purchase of investment securities | (108,859 | ) | (1,560 | ) | — | — | (110,419 | ) | ||||||||||||
Proceeds from sale or liquidation of long-term investments | 500 | — | 49 | — | 549 | |||||||||||||||
Purchase of long-term investments | (7,000 | ) | — | — | — | (7,000 | ) | |||||||||||||
Investments in non-consolidated real estate businesses | — | — | (12,534 | ) | — | (12,534 | ) | |||||||||||||
Purchase of subsidiaries | — | — | (250 | ) | — | (250 | ) | |||||||||||||
Distributions from non-consolidated real estate businesses | — | — | 3,539 | — | 3,539 | |||||||||||||||
Increase in cash surrender value of life insurance policies | — | (395 | ) | — | — | (395 | ) | |||||||||||||
Decrease (increase) in restricted assets | 299 | 19 | (689 | ) | — | (371 | ) | |||||||||||||
Issuance of notes receivable | (35,000 | ) | — | (250 | ) | 35,000 | (250 | ) | ||||||||||||
Investments in subsidiaries | (25,267 | ) | — | — | 25,267 | — | ||||||||||||||
Proceeds from sale of fixed assets | — | 4 | — | — | 4 | |||||||||||||||
Capital expenditures | (11 | ) | (6,563 | ) | (3,570 | ) | — | (10,144 | ) | |||||||||||
Repayments of notes receivable | 35,933 | — | — | (35,000 | ) | 933 | ||||||||||||||
Net cash used in investing activities | (90,109 | ) | (8,495 | ) | (13,705 | ) | 25,267 | (87,042 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from debt issuance | 408,750 | 40,166 | — | (35,000 | ) | 413,916 | ||||||||||||||
Deferred financing costs | (12,360 | ) | — | — | — | (12,360 | ) | |||||||||||||
Repayments of debt | — | (39,293 | ) | (3,758 | ) | 35,000 | (8,051 | ) | ||||||||||||
Borrowings under revolver | — | 429,188 | — | — | 429,188 | |||||||||||||||
Repayments on revolver | — | (437,736 | ) | — | — | (437,736 | ) | |||||||||||||
Capital contributions received | — | 3,150 | 22,117 | (25,267 | ) | — | ||||||||||||||
Intercompany dividends paid | — | (30,000 | ) | (11,952 | ) | 41,952 | — | |||||||||||||
Dividends and distributions on common stock | (80,963 | ) | — | — | — | (80,963 | ) | |||||||||||||
Distributions to non-controlling interest | — | — | (3,075 | ) | — | (3,075 | ) | |||||||||||||
Proceeds from exercise of Vector options | 3,405 | — | — | — | 3,405 | |||||||||||||||
Tax benefit of options exercised | 680 | — | — | — | 680 | |||||||||||||||
Net cash provided by (used in) financing activities | 319,512 | (34,525 | ) | 3,332 | 16,685 | 305,004 | ||||||||||||||
Net increase in cash and cash equivalents | 246,777 | 3,274 | 21,906 | — | 271,957 | |||||||||||||||
Cash and cash equivalents, beginning of period | 151,342 | 11,812 | 71,312 | — | 234,466 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 398,119 | $ | 15,086 | $ | 93,218 | $ | — | $ | 506,423 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Net cash provided by operating activities | $ | 5,204 | $ | 57,823 | $ | 2,187 | $ | (60,024 | ) | $ | 5,190 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Sale of investment securities | 36,533 | 6,582 | — | — | 43,115 | |||||||||||||||
Purchase of investment securities | (79,368 | ) | (11,000 | ) | — | — | (90,368 | ) | ||||||||||||
Proceeds from sale of or liquidation of long-term investments | — | — | 75 | — | 75 | |||||||||||||||
Purchase of long-term investments | (5,000 | ) | — | — | — | (5,000 | ) | |||||||||||||
Investments in non-consolidated real estate businesses | — | — | (19,048 | ) | — | (19,048 | ) | |||||||||||||
Investments in consolidated real estate businesses | — | — | (7,657 | ) | — | (7,657 | ) | |||||||||||||
Decrease (increase) in cash surrender value of life insurance policies | 79 | (382 | ) | — | — | (303 | ) | |||||||||||||
Decrease (increase) in restricted assets | 6 | (1,274 | ) | — | — | (1,268 | ) | |||||||||||||
Repayments of notes receivable | 8,433 | — | — | — | 8,433 | |||||||||||||||
Proceeds from sale of fixed assets | — | 13 | — | — | 13 | |||||||||||||||
Investments in subsidiaries | (43,584 | ) | — | — | 43,584 | — | ||||||||||||||
Capital expenditures | (2,247 | ) | (3,319 | ) | (429 | ) | — | (5,995 | ) | |||||||||||
Net cash used in investing activities | (85,148 | ) | (9,380 | ) | (27,059 | ) | 43,584 | (78,003 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from debt issuance | 450,000 | — | 3,080 | — | 453,080 | |||||||||||||||
Deferred financing costs | (11,663 | ) | — | — | — | (11,663 | ) | |||||||||||||
Repayments of debt | (415,000 | ) | (3,763 | ) | (70 | ) | — | (418,833 | ) | |||||||||||
Borrowings under revolver | — | 474,493 | — | — | 474,493 | |||||||||||||||
Repayments on revolver | — | (476,888 | ) | — | — | (476,888 | ) | |||||||||||||
Capital contributions received | — | 12,300 | 31,284 | (43,584 | ) | — | ||||||||||||||
Intercompany dividends paid | — | (50,582 | ) | (9,442 | ) | 60,024 | — | |||||||||||||
Dividends and distributions on common stock | (71,518 | ) | — | — | — | (71,518 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (48,181 | ) | (44,440 | ) | 24,852 | 16,440 | (51,329 | ) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (128,125 | ) | 4,003 | (20 | ) | — | (124,142 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 401,344 | 3,776 | 735 | — | 405,855 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 273,219 | $ | 7,779 | $ | 715 | $ | — | $ | 281,713 | ||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||
Basis of Presentation | ' | |||||||||||||||||||||||
Basis of Presentation: | ||||||||||||||||||||||||
The condensed consolidated financial statements of Vector Group Ltd. (the “Company” or “Vector”) include the accounts of VGR Holding LLC (“VGR Holding”), Liggett Group LLC (“Liggett”), Vector Tobacco Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), Zoom E-Cigs LLC ("Zoom"), 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. New Valley is engaged in the real estate business. | ||||||||||||||||||||||||
The accompanying unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles 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. generally accepted accounting principles for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission. 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. | ||||||||||||||||||||||||
Reclassifications | ' | |||||||||||||||||||||||
In connection with the December 13, 2013 acquisition of Douglas Elliman, the Company was required to disclose Douglas Elliman’s revenues and costs separately on the face of its condensed consolidated statements of operation. Consequently, the Company also revised the prior period in order to correctly present the gross revenues and costs of the other consolidated real estate investments as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
30-Jun-13 | 30-Jun-13 | |||||||||||||||||||||||
As Previously Reported | Revision | As Revised | As Previously Reported | Revision | As Revised | |||||||||||||||||||
Revenues | $ | 249,120 | $ | (249,120 | ) | $ | — | $ | 489,522 | $ | (489,522 | ) | $ | — | ||||||||||
Tobacco revenues | — | 249,120 | 249,120 | — | 489,522 | 489,522 | ||||||||||||||||||
Real estate revenues | — | 7,106 | 7,106 | — | 12,873 | 12,873 | ||||||||||||||||||
Total revenue | 249,120 | 7,106 | 256,226 | 489,522 | 12,873 | 502,395 | ||||||||||||||||||
Cost of Sales | 180,430 | (180,430 | ) | — | 353,386 | (353,386 | ) | — | ||||||||||||||||
Tobacco cost of sales | — | 180,430 | 180,430 | — | 353,386 | 353,386 | ||||||||||||||||||
Real estate cost of sales | — | 6,015 | 6,015 | — | 10,236 | 10,236 | ||||||||||||||||||
Total cost of sales | 180,430 | 6,015 | 186,445 | 353,386 | 10,236 | 363,622 | ||||||||||||||||||
Operating, selling, administrative and general expenses | $ | 24,450 | $ | 1,091 | $ | 25,541 | $ | 48,800 | $ | 2,637 | $ | 51,437 | ||||||||||||
In addition, the preliminary fair values of the assets acquired, liabilities assumed and the non-controlling interest recorded for Douglas Elliman as of December 13, 2013 were adjusted during the first quarter of 2014. Goodwill and current liabilities were reduced by $454 and $105, respectively, while intangible assets related to favorable lease agreements were increased by $559. The amounts are preliminary as management is still evaluating the valuations of certain assets acquired in the acquisition. These adjustments have been reflected in the Company's condensed consolidated balance sheet as of December 31, 2013. | ||||||||||||||||||||||||
Distributions and Dividends on Common Stock | ' | |||||||||||||||||||||||
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 and accumulated paid-in capital. Any amounts exceeding retained earnings are recorded as a reduction to additional paid-in capital. Any amounts then exceeding accumulated paid-in capital are recorded as an increase to accumulated deficit. | ||||||||||||||||||||||||
Revenue Recognition | ' | |||||||||||||||||||||||
Revenue Recognition: | ||||||||||||||||||||||||
Tobacco sales: Revenues from sales are recognized upon the shipment of finished goods when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sale price is determinable and collectibility is reasonably assured. The Company provides an allowance for expected sales returns, net of any related inventory cost recoveries. Certain sales incentives, including promotional price discounts, are classified as reductions of net sales. The Company’s accounting policy is to include federal excise taxes in revenues and cost of goods sold. Since the Company’s significant line of business is tobacco, the Company’s financial position and its results of operations and cash flows have been and could continue to be materially adversely affected by significant unit sales volume declines at the Company and industry levels, regulation, litigation and defense costs, increased tobacco costs or reductions in the selling price of cigarettes in the near term. | ||||||||||||||||||||||||
Real estate sales: Revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, the transaction has been completed and collectibility of the resulting receivable is reasonably assured. Real estate and mortgage commissions earned by the Company’s real estate and mortgage brokerage businesses are recorded as revenue on a gross basis upon the closing of a real estate transaction as evidenced when the escrow or similar account is closed, the transaction documents have been recorded and funds are distributed to all appropriate parties. Commissions and royalties expenses are recognized concurrently with related revenues. Property management fees earned are recorded as revenue when the related services are performed. | ||||||||||||||||||||||||
E-Cigarettes: Revenues from sales are recognized upon the shipment of finished goods when title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sale price is determinable and collectibility is reasonably assured. The Company provides an allowance for expected sales returns, net of any related inventory cost recoveries. Certain sales incentives, including promotional price discounts, are classified as reductions of net sales. | ||||||||||||||||||||||||
Earnings Per Share (bEPSb) | ' | |||||||||||||||||||||||
Earnings Per Share (“EPS”): | ||||||||||||||||||||||||
Information concerning the Company's common stock has been adjusted to give retroactive effect to the 5% stock dividend paid to Company stockholders on September 27, 2013. All per share amounts and references to share amounts have been updated to reflect the retrospective effect of the stock dividends. | ||||||||||||||||||||||||
Net income for purposes of determining basic and diluted EPS was as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net income attributed to Vector Group Ltd. | $ | 7,925 | $ | 13,511 | $ | 10,505 | $ | 11,830 | ||||||||||||||||
Income attributed to participating securities | (231 | ) | (374 | ) | (309 | ) | (328 | ) | ||||||||||||||||
Net income attributed to Vector Group Ltd. available to common stockholders | $ | 7,694 | $ | 13,137 | $ | 10,196 | $ | 11,502 | ||||||||||||||||
Basic and diluted EPS were calculated using the following shares: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Weighted-average shares for basic EPS | 96,760,894 | 91,167,749 | 95,686,399 | 91,165,686 | ||||||||||||||||||||
Plus incremental shares related to stock options and non-vested restricted stock | 101,258 | 216,890 | 112,293 | 205,721 | ||||||||||||||||||||
Weighted-average shares for basic and fully diluted EPS | 96,862,152 | 91,384,639 | 95,798,692 | 91,371,407 | ||||||||||||||||||||
The following stock options, non-vested restricted stock and shares issuable upon the conversion of convertible debt were outstanding during the three and six months ended June 30, 2014 and 2013 but were not included in the computation of diluted EPS because the effect was anti-dilutive. | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Number of stock options | — | N/A | — | N/A | ||||||||||||||||||||
Weighted-average exercise price | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Weighted-average shares of non-vested restricted stock | — | 56,175 | — | 56,175 | ||||||||||||||||||||
Weighted-average expense per share | N/A | $ | 15.58 | N/A | $ | 15.58 | ||||||||||||||||||
Weighted-average number of shares issuable upon | 32,493,002 | 28,310,522 | 29,105,625 | 28,310,522 | ||||||||||||||||||||
conversion of debt | ||||||||||||||||||||||||
Weighted-average conversion price | $ | 19.02 | $ | 15.22 | $ | 17.56 | $ | 15.22 | ||||||||||||||||
Fair Value of Derivatives Embedded within Convertible Debt | ' | |||||||||||||||||||||||
Fair Value of Derivatives Embedded within Convertible Debt: | ||||||||||||||||||||||||
The Company has estimated the fair market value of the embedded derivatives based principally on the results of a valuation model. 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; thus, a readily determinable fair market value of the embedded derivatives is not available. 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 the Company's stock price. At June 30, 2014, the range of estimated fair market values of the Company's embedded derivatives was between $189,358 and $193,797. The Company recorded the fair market value of its embedded derivatives at the midpoint of the range at $191,554 as of June 30, 2014. At December 31, 2013, the range of estimated fair market values of the Company's embedded derivatives was between $110,758 and $113,392. The Company recorded the fair market value of its embedded derivatives at the midpoint of the range at $112,062 as of December 31, 2013. The estimated fair market value of the Company's embedded derivatives could change significantly based on future market conditions. (See Note 6.) | ||||||||||||||||||||||||
New Accounting Pronouncements | ' | |||||||||||||||||||||||
New Accounting Pronouncements: | ||||||||||||||||||||||||
On April 10, 2014, the Financial Accounting Standards Board issued final guidance to change the criteria for reporting discontinued operations while enhancing disclosures in this area (Accounting Standards Update (“ASU”) No. 2014-08). Under the new guidance, only disposals representing a strategic shift, such as a major line of business, a major geographical area or a major equity investment, should be presented as discontinued operations. The guidance will be applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The guidance is effective for annual financial statements with fiscal years beginning on or after December 15, 2014 with early adoption permitted for disposals or classifications as held for sale which have not been reported in financial statements previously issued or available for issuance. The Company will adopt the guidance effective January 1, 2015 and the guidance is not anticipated to have a material impact on the Company's consolidated financial statements and notes to the consolidated financial statements. | ||||||||||||||||||||||||
On March 13, 2014, the Emerging Issues Task Force (the “Task Force”) reached a final consensus to amend the accounting guidance for stock compensation tied to performance targets (Issue No. 13-D). The objective of this guidance is to clarify the accounting treatment of certain types of performance conditions in stock-based compensation awards, more specifically, when performance targets can be achieved after the requisite service period. The Task Force concluded that performance criteria subsequent to a service period vesting requirement should be treated as vesting conditions, and as a result, this type of performance condition may delay expense recognition until achievement of the performance target is probable. Issue No. 13-D will be effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard but does not anticipate it will have a material impact on the Company's consolidated financial statements or notes to the consolidated financial statements. | ||||||||||||||||||||||||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 will be effective for the Company on January 1, 2017. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||
Net income for purposes of determining basic and diluted EPS | ' | |||||||||||||||||||||||
Net income for purposes of determining basic and diluted EPS was as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net income attributed to Vector Group Ltd. | $ | 7,925 | $ | 13,511 | $ | 10,505 | $ | 11,830 | ||||||||||||||||
Income attributed to participating securities | (231 | ) | (374 | ) | (309 | ) | (328 | ) | ||||||||||||||||
Net income attributed to Vector Group Ltd. available to common stockholders | $ | 7,694 | $ | 13,137 | $ | 10,196 | $ | 11,502 | ||||||||||||||||
Basic and diluted EPS calculation shares | ' | |||||||||||||||||||||||
Basic and diluted EPS were calculated using the following shares: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Weighted-average shares for basic EPS | 96,760,894 | 91,167,749 | 95,686,399 | 91,165,686 | ||||||||||||||||||||
Plus incremental shares related to stock options and non-vested restricted stock | 101,258 | 216,890 | 112,293 | 205,721 | ||||||||||||||||||||
Weighted-average shares for basic and fully diluted EPS | 96,862,152 | 91,384,639 | 95,798,692 | 91,371,407 | ||||||||||||||||||||
Outstanding shares not included in the computation of diluted EPS | ' | |||||||||||||||||||||||
The following stock options, non-vested restricted stock and shares issuable upon the conversion of convertible debt were outstanding during the three and six months ended June 30, 2014 and 2013 but were not included in the computation of diluted EPS because the effect was anti-dilutive. | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Number of stock options | — | N/A | — | N/A | ||||||||||||||||||||
Weighted-average exercise price | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Weighted-average shares of non-vested restricted stock | — | 56,175 | — | 56,175 | ||||||||||||||||||||
Weighted-average expense per share | N/A | $ | 15.58 | N/A | $ | 15.58 | ||||||||||||||||||
Weighted-average number of shares issuable upon | 32,493,002 | 28,310,522 | 29,105,625 | 28,310,522 | ||||||||||||||||||||
conversion of debt | ||||||||||||||||||||||||
Weighted-average conversion price | $ | 19.02 | $ | 15.22 | $ | 17.56 | $ | 15.22 | ||||||||||||||||
Schedule of other income (loss), net | ' | |||||||||||||||||||||||
Other income, net consists of: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Gain (loss) on warrants | $ | 45 | $ | (28 | ) | $ | (123 | ) | $ | 37 | ||||||||||||||
Interest income | 1,189 | 826 | 2,189 | 1,476 | ||||||||||||||||||||
Accretion of interest income from debt discount on notes receivable | 10 | 588 | 76 | 623 | ||||||||||||||||||||
Out-of-period adjustment | — | — | 1,231 | — | ||||||||||||||||||||
Acceleration of closing fee related to termination of Douglas Elliman joint venture | 2,335 | — | 2,335 | — | ||||||||||||||||||||
Gain on long-term investment | — | 142 | — | 142 | ||||||||||||||||||||
Other (expense) income | (4 | ) | (57 | ) | (7 | ) | 2 | |||||||||||||||||
Other income, net | $ | 3,575 | $ | 1,471 | $ | 5,701 | $ | 2,280 | ||||||||||||||||
Schedule of revision of prior period gross revenues and costs | ' | |||||||||||||||||||||||
In connection with the December 13, 2013 acquisition of Douglas Elliman, the Company was required to disclose Douglas Elliman’s revenues and costs separately on the face of its condensed consolidated statements of operation. Consequently, the Company also revised the prior period in order to correctly present the gross revenues and costs of the other consolidated real estate investments as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
30-Jun-13 | 30-Jun-13 | |||||||||||||||||||||||
As Previously Reported | Revision | As Revised | As Previously Reported | Revision | As Revised | |||||||||||||||||||
Revenues | $ | 249,120 | $ | (249,120 | ) | $ | — | $ | 489,522 | $ | (489,522 | ) | $ | — | ||||||||||
Tobacco revenues | — | 249,120 | 249,120 | — | 489,522 | 489,522 | ||||||||||||||||||
Real estate revenues | — | 7,106 | 7,106 | — | 12,873 | 12,873 | ||||||||||||||||||
Total revenue | 249,120 | 7,106 | 256,226 | 489,522 | 12,873 | 502,395 | ||||||||||||||||||
Cost of Sales | 180,430 | (180,430 | ) | — | 353,386 | (353,386 | ) | — | ||||||||||||||||
Tobacco cost of sales | — | 180,430 | 180,430 | — | 353,386 | 353,386 | ||||||||||||||||||
Real estate cost of sales | — | 6,015 | 6,015 | — | 10,236 | 10,236 | ||||||||||||||||||
Total cost of sales | 180,430 | 6,015 | 186,445 | 353,386 | 10,236 | 363,622 | ||||||||||||||||||
Operating, selling, administrative and general expenses | $ | 24,450 | $ | 1,091 | $ | 25,541 | $ | 48,800 | $ | 2,637 | $ | 51,437 | ||||||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consist of: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Leaf tobacco | $ | 59,506 | $ | 49,140 | ||||
Other raw materials | 3,196 | 3,161 | ||||||
Work-in-process | 388 | 353 | ||||||
Finished goods | 65,021 | 67,201 | ||||||
E-Cigarettes | 9,705 | 839 | ||||||
Inventories at current cost | 137,816 | 120,694 | ||||||
LIFO adjustments | (29,559 | ) | (27,198 | ) | ||||
$ | 108,257 | $ | 93,496 | |||||
Investment_Securities_Availabl1
Investment Securities Available for Sale (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||
Available-for-sale Securities | ' | |||||||||||||||
The components of investment securities available for sale at June 30, 2014 were as follows: | ||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | |||||||||||||||
Marketable equity securities | $ | 55,602 | $ | 68,738 | $ | (1,306 | ) | $ | 123,034 | |||||||
Mutual funds invested in fixed income securities | 60,217 | 305 | — | 60,522 | ||||||||||||
Marketable debt securities | 52,883 | 1,744 | (416 | ) | 54,211 | |||||||||||
Total investment securities available for sale | $ | 168,702 | $ | 70,787 | $ | (1,722 | ) | $ | 237,767 | |||||||
The components of investment securities available for sale at December 31, 2013 were as follows: | ||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | |||||||||||||||
Marketable equity securities | $ | 53,586 | $ | 65,851 | $ | (963 | ) | $ | 118,474 | |||||||
Marketable debt securities | 53,063 | 1,497 | (500 | ) | 54,060 | |||||||||||
Total investment securities available for sale | $ | 106,649 | $ | 67,348 | $ | (1,463 | ) | $ | 172,534 | |||||||
Schedule of Maturity Dates of Fixed Income Securities | ' | |||||||||||||||
The table below summarizes the maturity dates of marketable debt securities at June 30, 2014. | ||||||||||||||||
Investment Type: | Market Value | Under 1 Year | 1 Year up to 5 Years | More than 5 Years | ||||||||||||
U.S. Government securities | $ | 11,197 | $ | 830 | $ | 10,367 | $ | — | ||||||||
Corporate securities | 30,648 | 2,906 | 20,206 | 7,536 | ||||||||||||
U.S. mortgage backed securities | 214 | — | 214 | — | ||||||||||||
Commercial mortgage-backed securities | 6,645 | 854 | 5,791 | — | ||||||||||||
U.S. asset backed securities | 5,061 | — | 5,061 | — | ||||||||||||
Government agencies | 192 | — | 192 | — | ||||||||||||
Index-linked U.S. bonds | 254 | — | 254 | — | ||||||||||||
Total marketable debt securities by maturity dates | $ | 54,211 | $ | 4,590 | $ | 42,085 | $ | 7,536 | ||||||||
LongTerm_Investments_Tables
Long-Term Investments (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Long-term Investments [Abstract] | ' | |||||||||||||||
Long-term investments | ' | |||||||||||||||
Long-term investments accounted for at cost: | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Investment partnerships | $ | 26,541 | $ | 32,619 | $ | 20,041 | $ | 24,095 | ||||||||
Real estate partnership | 698 | 1,148 | 747 | 1,067 | ||||||||||||
Investments accounted for at cost | $ | 27,239 | $ | 33,767 | $ | 20,788 | $ | 25,162 | ||||||||
Schedule of Equity Method Investments | ' | |||||||||||||||
Long-term investment partnership accounted for under the equity method: | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Investment partnership | $ | 17,842 | $ | 8,595 | ||||||||||||
New_Valley_LLC_Tables
New Valley LLC (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
New Valley LLC [Abstract] | ' | |||||||||
Schedule of summarized financial information | ' | |||||||||
Summarized income statement information for Douglas Elliman for the three and six months ended June 30, 2013, is presented below. | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | |||||||||
2013 | 2013 | |||||||||
Revenues | $ | 113,647 | $ | 188,184 | ||||||
Costs and expenses | 100,093 | 173,707 | ||||||||
Depreciation expense | 985 | 1,958 | ||||||||
Amortization expense | 55 | 111 | ||||||||
Other income | 261 | 403 | ||||||||
Interest income, net | 8 | 8 | ||||||||
Income tax expense | 301 | 242 | ||||||||
Net income | $ | 12,482 | $ | 12,577 | ||||||
Investments In non-consolidated real estate businesses | ' | |||||||||
Investments in non-consolidated real estate businesses. New Valley also holds equity investments in various real estate projects domestically and internationally. The components of “Investments in non-consolidated real estate businesses” were as follows: | ||||||||||
June 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Sesto Holdings | $ | 5,037 | $ | 5,037 | ||||||
Land Development | 5,037 | 5,037 | ||||||||
10 Madison Square Park West (f/k/a 1107 Broadway) | 6,384 | 6,579 | ||||||||
The Whitman | 526 | 1,165 | ||||||||
The Marquand | 7,000 | 7,000 | ||||||||
11 Beach Street | 12,328 | 11,160 | ||||||||
701 Seventh Avenue | 11,324 | 11,148 | ||||||||
101 Murray Street | 23,006 | 19,256 | ||||||||
Leroy Street | 652 | 1,150 | ||||||||
PUBLIC Chrystie House (f/k/a Chrystie Street) | 3,081 | 2,048 | ||||||||
25-19 43rd Avenue | 733 | — | ||||||||
23-10 Queens Plaza South | 9,528 | 8,058 | ||||||||
8701 Collins Avenue | 4,000 | 3,794 | ||||||||
Condominium and Mixed Use Development | 78,562 | 71,358 | ||||||||
Maryland Portfolio | 3,518 | 3,498 | ||||||||
ST Portfolio | 15,550 | 15,984 | ||||||||
Apartment Buildings | 19,068 | 19,482 | ||||||||
Park Lane Hotel | 17,447 | 19,514 | ||||||||
Hotel Taiwana | 7,467 | 7,428 | ||||||||
Coral Beach | 3,410 | 2,964 | ||||||||
Hotels | 28,324 | 29,906 | ||||||||
Other | 2,638 | 2,419 | ||||||||
Investments in non-consolidated real estate businesses | $ | 133,629 | $ | 128,202 | ||||||
Schedule of consolidated real estate investments | ' | |||||||||
The components of “Real estate held for sale, net” were as follows: | ||||||||||
June 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Escena, net | $ | 10,669 | $ | 10,625 | ||||||
Indian Creek | — | 10,286 | ||||||||
Real estate held for sale, net | $ | 10,669 | $ | 20,911 | ||||||
Investment in Escena | ' | |||||||||
The assets of "Escena, net" are as follows: | ||||||||||
June 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Land and land improvements | $ | 8,930 | $ | 8,930 | ||||||
Building and building improvements | 1,830 | 1,530 | ||||||||
Other | 1,526 | 1,577 | ||||||||
12,286 | 12,037 | |||||||||
Less accumulated depreciation | (1,617 | ) | (1,412 | ) | ||||||
$ | 10,669 | $ | 10,625 | |||||||
Notes_Payable_LongTerm_Debt_an
Notes Payable, Long-Term Debt and Other Obligations (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Notes payable, long-term debt and other obligations | ' | |||||||||||||||
Notes payable, long-term debt and other obligations consist of: | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Vector: | ||||||||||||||||
7.75% Senior Secured Notes due 2021, including premium of $9,879 and $0 | $ | 609,879 | $ | 450,000 | ||||||||||||
6.75% Variable Interest Senior Convertible Note due 2014, net of unamortized discount of $4,895 and $19,311* | 20,105 | 30,689 | ||||||||||||||
6.75% Variable Interest Senior Convertible Exchange Notes due 2014, net of unamortized discount of $11,569 and $25,944* | 88,461 | 81,586 | ||||||||||||||
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $151,675 and $155,817* | 78,325 | 74,183 | ||||||||||||||
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $104,496 and $0* | 154,254 | — | ||||||||||||||
Liggett: | ||||||||||||||||
Revolving credit facility | 21,876 | 30,424 | ||||||||||||||
Term loan under credit facility | 3,737 | 3,884 | ||||||||||||||
Equipment loans | 18,237 | 17,252 | ||||||||||||||
Other | 603 | 4,325 | ||||||||||||||
Total notes payable, long-term debt and other obligations | 995,477 | 692,343 | ||||||||||||||
Less: | ||||||||||||||||
Current maturities | (141,808 | ) | (151,577 | ) | ||||||||||||
Amount due after one year | $ | 853,669 | $ | 540,766 | ||||||||||||
______________________ | ||||||||||||||||
* The fair value of the derivatives embedded within the 6.75% Variable Interest Senior Convertible Note ($1,716 at June 30, 2014 and $6,607 at December 31, 2013, respectively), the 6.75% Variable Interest Senior Convertible Exchange Notes ($6,052 at June 30, 2014 and $12,521 at December 31, 2013, respectively), the 5.50% Variable Interest Senior Convertible Debentures ($87,217 at June 30, 2014 and $0 at December 31, 2013, respectively), and the 7.50% Variable Interest Senior Convertible Debentures ($96,569 at June 30, 2014 and $92,934 at December 31, 2013, respectively), is separately classified as a derivative liability in the condensed consolidated balance sheets. | ||||||||||||||||
Non-Cash Interest Expense - Vector | ' | |||||||||||||||
Non-Cash Interest Expense - Vector: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Amortization of debt discount | $ | 7,563 | $ | 8,464 | $ | 20,019 | $ | 15,812 | ||||||||
Amortization of deferred finance costs | 1,055 | 447 | 1,763 | 1,044 | ||||||||||||
Loss on extinguishment of 11% Senior Secured Notes | — | — | — | 3,638 | ||||||||||||
Accelerated interest expense on 6.75% Variable Interest Senior Convertible Note converted | — | — | 3,679 | — | ||||||||||||
Accelerated interest expense on 6.75% Variable Interest Senior Convertible Exchange Notes converted | 439 | — | 439 | — | ||||||||||||
$ | 9,057 | $ | 8,911 | $ | 25,900 | $ | 20,494 | |||||||||
Fair Value of Notes Payable and Long-Term Debt | ' | |||||||||||||||
Fair Value of Notes Payable and Long-Term Debt: | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Notes payable and long-term debt | $ | 995,477 | $ | 1,473,738 | $ | 692,343 | $ | 1,006,562 | ||||||||
Contingencies_Tables
Contingencies (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||
Cases Pending by State | ' | |||||||||||||||||||||||
The following table lists the number of Individual Actions, by state, that are pending against Liggett or the Company as of June 30, 2014: | ||||||||||||||||||||||||
State | Number | |||||||||||||||||||||||
of Cases | ||||||||||||||||||||||||
Florida | 30 | |||||||||||||||||||||||
New York | 9 | |||||||||||||||||||||||
Maryland | 4 | |||||||||||||||||||||||
Louisiana | 2 | |||||||||||||||||||||||
West Virginia | 2 | |||||||||||||||||||||||
Missouri | 1 | |||||||||||||||||||||||
Ohio | 1 | |||||||||||||||||||||||
Schedule of Judgments Entered | ' | |||||||||||||||||||||||
As of June 30, 2014, the following Engle progeny cases have resulted in judgments against Liggett: | ||||||||||||||||||||||||
Date | Case Name | County | Net Compensatory | Punitive Damages | Status | |||||||||||||||||||
Damages | ||||||||||||||||||||||||
Jun-02 | Lukacs v. R.J. Reynolds | Miami-Dade | $12,418 | None | Liggett satisfied the judgment and the case is concluded. | |||||||||||||||||||
Aug-09 | Campbell v. R.J. Reynolds | Escambia | $156 | None | Liggett satisfied the judgment and the case is concluded. | |||||||||||||||||||
Mar-10 | Douglas v. R.J. Reynolds | Hillsborough | $1,350 | None | Liggett satisfied the judgment and the case is concluded. | |||||||||||||||||||
Apr-10 | Clay v. R.J. Reynolds | Escambia | $349 | $1,000 | Liggett satisfied the judgment and the case is concluded. | |||||||||||||||||||
Apr-10 | Putney v. R.J. Reynolds | Broward | $3,008 | None | On June 12, 2013, the Fourth District Court of Appeal reversed and remanded the case for further proceedings. Plaintiff filed a motion for rehearing which was denied. Both sides have sought discretionary review from the Florida Supreme Court. The appeal is stayed pending the outcome of the Hess appeal. | |||||||||||||||||||
Apr-11 | Tullo v. R.J. Reynolds | Palm Beach | $225 | None | Affirmed by the Fourth District Court of Appeal. The defendants have sought discretionary review from the Florida Supreme Court. | |||||||||||||||||||
Jan-12 | Ward v. R.J. Reynolds | Escambia | $1 | None | Affirmed by the First District Court of Appeal. Liggett satisfied the merits judgment and other than an issue regarding attorneys' fees, the case is concluded. | |||||||||||||||||||
May-12 | Calloway v. R.J. Reynolds | Broward | $1,947 | $7,600 | A joint and several judgment for $16,100 was entered against R.J. Reynolds, Philip Morris, Lorillard and Liggett. On appeal to the Fourth District Court of Appeal. | |||||||||||||||||||
Dec-12 | Buchanan v. R.J. Reynolds | Leon | $2,035 | None | A joint and several judgment for $5,500 was entered against Liggett and Philip Morris. Affirmed by the First District Court of Appeal, but, the court certified an issue of conflict with another case. | |||||||||||||||||||
May-13 | Cohen v. R.J. Reynolds | Palm Beach | $205 | None | Defendants' motion seeking a new trial was granted by the trial court. Plaintiff appealed to the Fourth District Court of Appeal. | |||||||||||||||||||
Aug-13 | Rizzuto v. R.J. Reynolds | Hernando | $3,479 | None | A joint and several judgment for $11,132 was entered against Philip Morris and Liggett. The court denied defendants' request to reduce the compensatory damages by the plaintiff's comparative fault. Liggett entered into a settlement agreement to resolve its portion of the judgment for $1,500. The settlement is subject to bankruptcy court approval. | |||||||||||||||||||
Total Damages Awarded: | $25,173 | $8,600 | ||||||||||||||||||||||
Amounts paid or compromised: | ($14,274) | ($1,000) | ||||||||||||||||||||||
Damages remaining on Appeal: | $10,899 | $7,600 | ||||||||||||||||||||||
Schedule of Loss Contingencies | ' | |||||||||||||||||||||||
The activity in the Company's accruals for the MSA and tobacco litigation for the six months ended June 30, 2014 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 at January 1, 2014 | $ | 25,348 | $ | 59,310 | $ | 84,658 | $ | 27,571 | $ | 27,058 | $ | 54,629 | ||||||||||||
Expenses | 52,510 | 1,769 | 54,279 | — | — | — | ||||||||||||||||||
NPM Settlement adjustment | — | — | — | (1,419 | ) | — | (1,419 | ) | ||||||||||||||||
Change in MSA obligations capitalized as inventory | 151 | — | 151 | — | — | — | ||||||||||||||||||
Payments | (16,343 | ) | (60,201 | ) | (76,544 | ) | — | — | — | |||||||||||||||
Reclassification from non-current liabilities | 343 | 3,575 | 3,918 | (343 | ) | (3,575 | ) | (3,918 | ) | |||||||||||||||
Interest on withholding | — | 83 | 83 | — | 893 | 893 | ||||||||||||||||||
Balance as of June 30, 2014 | $ | 62,009 | $ | 4,536 | $ | 66,545 | $ | 25,809 | $ | 24,376 | $ | 50,185 | ||||||||||||
The activity in the Company's accruals for the MSA and tobacco litigation for the six months ended June 30, 2013 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 at January 1, 2013 | $ | 32,970 | $ | 1,470 | $ | 34,440 | $ | 52,639 | $ | 1,862 | $ | 54,501 | ||||||||||||
Expenses | 56,907 | 147 | 57,054 | — | — | — | ||||||||||||||||||
NPM Settlement adjustment | — | — | — | (13,489 | ) | — | (13,489 | ) | ||||||||||||||||
Change in MSA obligations capitalized as inventory | 364 | — | 364 | — | — | — | ||||||||||||||||||
Payments | (34,077 | ) | (1,577 | ) | (35,654 | ) | — | — | — | |||||||||||||||
Reclassification from non-current liabilities | 3,521 | 223 | 3,744 | (3,520 | ) | (223 | ) | (3,743 | ) | |||||||||||||||
Interest on withholding | — | 18 | 18 | — | 99 | 99 | ||||||||||||||||||
Balance as of June 30, 2013 | $ | 59,685 | $ | 281 | $ | 59,966 | $ | 35,630 | $ | 1,738 | $ | 37,368 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income before provision for income taxes | $ | 19,132 | $ | 23,528 | $ | 25,603 | $ | 21,512 | ||||||||
Income tax expense using estimated annual effective income tax rate | 6,279 | 9,575 | 8,404 | 8,755 | ||||||||||||
Changes in effective tax rates | (178 | ) | 321 | — | — | |||||||||||
Impact of discrete items, net | — | 121 | 639 | 927 | ||||||||||||
Income tax expense | $ | 6,101 | $ | 10,017 | $ | 9,043 | $ | 9,682 | ||||||||
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Company's recurring financial assets and liabilities subject to fair value measurements | ' | ||||||||||||||||
The Company's recurring financial assets and liabilities subject to fair value measurements are as follows: | |||||||||||||||||
Fair Value Measurements as of June 30, 2014 | |||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 335,332 | $ | 335,332 | $ | — | $ | — | |||||||||
Certificates of deposit | 3,252 | — | 3,252 | — | |||||||||||||
Bonds | 5,093 | 5,093 | — | — | |||||||||||||
Investment securities available for sale | — | ||||||||||||||||
Equity securities | 123,034 | 122,262 | 772 | — | |||||||||||||
Mutual funds invested in fixed income securities | 60,522 | 60,522 | — | — | |||||||||||||
Fixed income securities | |||||||||||||||||
U.S. Government securities | 11,197 | — | 11,197 | — | |||||||||||||
Corporate securities | 30,648 | 6,744 | 23,904 | — | |||||||||||||
U.S. mortgage backed securities | 214 | — | 214 | — | |||||||||||||
Commercial mortgage-backed securities | 6,645 | — | 6,645 | — | |||||||||||||
U.S. asset backed securities | 5,061 | — | 5,061 | — | |||||||||||||
U.S. Government agencies | 191 | — | 191 | — | |||||||||||||
Index-linked U.S. bonds | 255 | — | 255 | — | |||||||||||||
Total fixed income securities | 54,211 | 6,744 | 47,467 | — | |||||||||||||
Warrants (1) | 1,647 | — | — | 1,647 | |||||||||||||
Total | $ | 583,091 | $ | 529,953 | $ | 51,491 | $ | 1,647 | |||||||||
Liabilities: | |||||||||||||||||
Fair value of derivatives embedded within convertible debt | $ | 191,554 | $ | — | $ | — | $ | 191,554 | |||||||||
-1 | Warrants include 1,000,000 of LTS Warrants received on November 4, 2011 which were carried at $1,647 as of June 30, 2014 and are included in "Other assets". The Company recognized a loss of $111 for the six months ended June 30, 2014 related to the change in fair value of the Warrants. | ||||||||||||||||
Fair Value Measurements as of December 31, 2013 | |||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 130,733 | $ | 130,733 | $ | — | $ | — | |||||||||
Certificates of deposit | 2,961 | — | 2,961 | — | |||||||||||||
Bonds | 5,337 | 5,337 | — | — | |||||||||||||
Investment securities available for sale | — | ||||||||||||||||
Equity securities | 118,474 | 117,737 | 737 | — | |||||||||||||
Fixed income securities | — | ||||||||||||||||
U.S. Government securities | 13,990 | — | 13,990 | — | |||||||||||||
Corporate securities | 29,923 | 6,497 | 23,426 | — | |||||||||||||
U.S. mortgage backed securities | 495 | — | 495 | — | |||||||||||||
Commercial mortgage-backed securities | 6,822 | — | 6,822 | — | |||||||||||||
U.S. asset backed securities | 2,081 | — | 2,081 | — | |||||||||||||
Index-linked U.S. bonds | 749 | — | 749 | — | |||||||||||||
Total fixed income securities | 54,060 | 6,497 | 47,563 | — | |||||||||||||
Warrants (1) | 1,935 | — | — | 1,935 | |||||||||||||
Total | $ | 313,500 | $ | 260,304 | $ | 51,261 | $ | 1,935 | |||||||||
Liabilities: | |||||||||||||||||
Fair value of derivatives embedded within convertible debt | $ | 112,062 | $ | — | $ | — | $ | 112,062 | |||||||||
-1 | Warrants include 1,000,000 of LTS Warrants received on November 4, 2011 which were carried at $1,758 as of December 31, 2013 and are included in "Other assets". The Company recognized income of $65 for the six months ended June 30, 2013 related to the change in fair value of the Warrants. | ||||||||||||||||
Unobservable inputs related to the valuations of the Level 3 assets and liabilities | ' | ||||||||||||||||
The unobservable inputs related to the valuations of the Level 3 assets and liabilities are as follows at June 30, 2014: | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
Fair Value at | |||||||||||||||||
June 30, | Valuation Technique | Unobservable Input | Range (Actual) | ||||||||||||||
2014 | |||||||||||||||||
Warrants | $ | 1,647 | Option model | Stock price | $ | 3.15 | |||||||||||
Exercise price | $ | 1.68 | |||||||||||||||
Term (in years) | 2.4 | ||||||||||||||||
Volatility | 45.83 | % | |||||||||||||||
Dividend rate | — | ||||||||||||||||
Risk-free return | 0.7 | % | |||||||||||||||
Fair value of derivatives embedded within convertible debt | $ | 191,554 | Discounted cash flow | Assumed annual stock dividend | 5 | % | |||||||||||
Assumed annual cash dividend | $ | 1.6 | |||||||||||||||
Stock price | $ | 20.68 | |||||||||||||||
Convertible trading price | 107.19 | % | |||||||||||||||
Volatility | 16 | % | |||||||||||||||
Implied credit spread | 5.5% - 6.5% (6.0%) | ||||||||||||||||
The unobservable inputs related to the valuations of the Level 3 assets and liabilities are as follows at December 31, 2013: | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
Fair Value at | |||||||||||||||||
December 31, | Valuation Technique | Unobservable Input | Range (Actual) | ||||||||||||||
2013 | |||||||||||||||||
Warrants | $ | 1,935 | Option model | Stock price | $ | 3.13 | |||||||||||
Exercise price | $ | 1.68 | |||||||||||||||
Term (in years) | 2.8 | ||||||||||||||||
Volatility | 53.82 | % | |||||||||||||||
Dividend rate | — | ||||||||||||||||
Risk-free return | 0.72 | % | |||||||||||||||
Fair value of derivatives embedded within convertible debt | $ | 112,062 | Discounted cash flow | Assumed annual stock dividend | 5 | % | |||||||||||
Assumed annual cash dividend | $ | 1.6 | |||||||||||||||
Stock price | $ | 16.37 | |||||||||||||||
Convertible trading price | 118.7 | % | |||||||||||||||
Volatility | 18 | % | |||||||||||||||
Implied credit spread | 7.5% - 8.5% (8.0%) | ||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Financial information for the company's operations before taxes | ' | ||||||||||||||||
Financial information for the Company's operations before taxes for the three and six months ended June 30, 2014 and 2013 follows: | |||||||||||||||||
Real | Corporate | ||||||||||||||||
Tobacco | Estate | and Other | Total | ||||||||||||||
Three months ended June 30, 2014 | |||||||||||||||||
Revenues | $ | 250,556 | $ | 153,488 | $ | 2,569 | $ | 406,613 | |||||||||
Operating income (loss) | 51,506 | (1 | ) | 15,901 | (7,099 | ) | 60,308 | ||||||||||
Equity loss from non-consolidated real estate businesses | — | (1,808 | ) | — | (1,808 | ) | |||||||||||
Depreciation and amortization | 2,588 | 2,622 | 252 | 5,462 | |||||||||||||
Three months ended June 30, 2013 | |||||||||||||||||
Revenues | $ | 249,120 | $ | 7,106 | $ | — | $ | 256,226 | |||||||||
Operating income (loss) | 48,294 | (2) | (407 | ) | (3,647 | ) | 44,240 | ||||||||||
Equity income from non-consolidated real estate businesses | — | 6,804 | — | 6,804 | |||||||||||||
Depreciation and amortization | 2,368 | 152 | 117 | 2,637 | |||||||||||||
Six months ended June 30, 2014 | |||||||||||||||||
Revenues | $ | 483,948 | $ | 261,532 | $ | 8,369 | $ | 753,849 | |||||||||
Operating income (loss) | 94,402 | (3 | ) | 20,645 | (12,017 | ) | 103,030 | ||||||||||
Equity loss from non-consolidated real estate businesses | — | (256 | ) | — | (256 | ) | |||||||||||
Depreciation and amortization | 5,081 | 6,969 | 504 | 12,554 | |||||||||||||
Capital expenditures | 6,563 | 3,570 | 11 | 10,144 | |||||||||||||
Six months ended June 30, 2013 | |||||||||||||||||
Revenues | $ | 489,522 | $ | 12,873 | $ | — | $ | 502,395 | |||||||||
Operating income (loss) | 95,454 | (4) | (321 | ) | (7,797 | ) | 87,336 | ||||||||||
Equity income from non-consolidated real estate businesses | — | 7,285 | — | 7,285 | |||||||||||||
Depreciation and amortization | 4,753 | 280 | 200 | 5,233 | |||||||||||||
Capital expenditures | 3,319 | 429 | 2,247 | 5,995 | |||||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Condensed Balance Sheet | ' | |||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
ASSETS: | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 398,119 | $ | 15,086 | $ | 93,218 | $ | — | $ | 506,423 | ||||||||||
Investment securities available for sale | 178,626 | 59,141 | — | — | 237,767 | |||||||||||||||
Accounts receivable - trade, net | — | 12,282 | 3,471 | — | 15,753 | |||||||||||||||
Intercompany receivables | 516 | 20 | — | (536 | ) | — | ||||||||||||||
Inventories | — | 108,257 | — | — | 108,257 | |||||||||||||||
Deferred income taxes | 23,164 | 5,100 | — | — | 28,264 | |||||||||||||||
Income taxes receivable, net | 21,428 | — | — | (8,659 | ) | 12,769 | ||||||||||||||
Restricted assets | — | 1,141 | 1,414 | — | 2,555 | |||||||||||||||
Other current assets | 724 | 7,988 | 19,820 | — | 28,532 | |||||||||||||||
Total current assets | 622,577 | 209,015 | 117,923 | (9,195 | ) | 940,320 | ||||||||||||||
Property, plant and equipment, net | 3,148 | 56,644 | 20,540 | — | 80,332 | |||||||||||||||
Real estate held for sale, net | — | — | 10,669 | — | 10,669 | |||||||||||||||
Long-term investments accounted for at cost | 26,541 | — | 698 | — | 27,239 | |||||||||||||||
Long-term investments accounted for under the equity method | 17,842 | — | — | — | 17,842 | |||||||||||||||
Investments in non-consolidated real estate businesses | — | — | 133,629 | — | 133,629 | |||||||||||||||
Investments in consolidated subsidiaries | 447,514 | — | — | (447,514 | ) | — | ||||||||||||||
Restricted assets | 1,596 | 9,985 | — | — | 11,581 | |||||||||||||||
Deferred income taxes | 52,448 | 8,488 | 3,776 | — | 64,712 | |||||||||||||||
Goodwill and other intangible assets, net | — | 107,511 | 161,736 | — | 269,247 | |||||||||||||||
Prepaid pension costs | — | 27,663 | — | — | 27,663 | |||||||||||||||
Other assets | 47,780 | 10,494 | 1,154 | — | 59,428 | |||||||||||||||
Total assets | $ | 1,219,446 | $ | 429,800 | $ | 450,125 | $ | (456,709 | ) | $ | 1,642,662 | |||||||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY: | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of notes payable and long-term debt | $ | 108,566 | $ | 33,029 | $ | 213 | $ | — | $ | 141,808 | ||||||||||
Current portion of fair value of derivatives embedded within convertible debt | 7,768 | — | — | — | 7,768 | |||||||||||||||
Current portion of employee benefits | — | 939 | — | — | 939 | |||||||||||||||
Accounts payable | 932 | 4,721 | 4,527 | — | 10,180 | |||||||||||||||
Intercompany payables | — | — | 536 | (536 | ) | — | ||||||||||||||
Accrued promotional expenses | — | 20,040 | — | — | 20,040 | |||||||||||||||
Income taxes payable, net | — | 11,815 | — | (8,659 | ) | 3,156 | ||||||||||||||
Accrued excise and payroll taxes payable, net | — | 16,809 | — | — | 16,809 | |||||||||||||||
Litigation accruals and current payments due under the Master Settlement Agreement | — | 66,545 | — | — | 66,545 | |||||||||||||||
Deferred income taxes | 37,862 | 13,571 | — | — | 51,433 | |||||||||||||||
Accrued interest | 29,926 | — | — | — | 29,926 | |||||||||||||||
Other current liabilities | 3,671 | 8,699 | 19,338 | — | 31,708 | |||||||||||||||
Total current liabilities | 188,725 | 176,168 | 24,614 | (9,195 | ) | 380,312 | ||||||||||||||
Notes payable, long-term debt and other obligations, less current portion | 842,458 | 10,882 | 329 | — | 853,669 | |||||||||||||||
Fair value of derivatives embedded within convertible debt | 183,786 | — | — | — | 183,786 | |||||||||||||||
Non-current employee benefits | 32,195 | 16,369 | — | — | 48,564 | |||||||||||||||
Deferred income taxes | 78,506 | 39,112 | 35,863 | — | 153,481 | |||||||||||||||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 1,296 | 50,597 | 2,070 | — | 53,963 | |||||||||||||||
Total liabilities | 1,326,966 | 293,128 | 62,876 | (9,195 | ) | 1,673,775 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders' (deficiency) equity attributed to Vector Group Ltd. | (107,520 | ) | 136,672 | 310,842 | (447,514 | ) | (107,520 | ) | ||||||||||||
Non-controlling interest | — | — | 76,407 | — | 76,407 | |||||||||||||||
Total stockholders' (deficiency) equity | (107,520 | ) | 136,672 | 387,249 | (447,514 | ) | (31,113 | ) | ||||||||||||
Total liabilities and stockholders' deficiency | $ | 1,219,446 | $ | 429,800 | $ | 450,125 | $ | (456,709 | ) | $ | 1,642,662 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
ASSETS: | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 151,342 | $ | 11,812 | $ | 71,312 | $ | — | $ | 234,466 | ||||||||||
Investment securities available for sale | 114,886 | 57,648 | — | — | 172,534 | |||||||||||||||
Accounts receivable - trade, net | — | 10,154 | 2,005 | — | 12,159 | |||||||||||||||
Intercompany receivables | 509 | — | — | (509 | ) | — | ||||||||||||||
Inventories | — | 93,496 | — | — | 93,496 | |||||||||||||||
Deferred income taxes | 45,578 | 4,901 | — | — | 50,479 | |||||||||||||||
Income taxes receivable, net | — | 10,447 | — | (10,447 | ) | — | ||||||||||||||
Restricted assets | — | 1,060 | 725 | — | 1,785 | |||||||||||||||
Other current assets | 513 | 12,579 | 10,300 | — | 23,392 | |||||||||||||||
Total current assets | 312,828 | 202,097 | 84,342 | (10,956 | ) | 588,311 | ||||||||||||||
Property, plant and equipment, net | 3,641 | 55,093 | 20,524 | — | 79,258 | |||||||||||||||
Real estate held for sale, net | — | — | 20,911 | — | 20,911 | |||||||||||||||
Long-term investments accounted for at cost | 20,041 | — | 747 | — | 20,788 | |||||||||||||||
Long-term investments accounted for under the equity method | 8,595 | — | — | — | 8,595 | |||||||||||||||
Investments in non-consolidated real estate businesses | — | — | 128,202 | — | 128,202 | |||||||||||||||
Investments in consolidated subsidiaries | 410,442 | — | — | (410,442 | ) | — | ||||||||||||||
Restricted assets | 1,895 | 10,086 | — | — | 11,981 | |||||||||||||||
Deferred income taxes | 35,000 | 12,766 | 3,708 | — | 51,474 | |||||||||||||||
Goodwill and other intangible assets, net | — | 107,511 | 163,600 | — | 271,111 | |||||||||||||||
Prepaid pension costs | — | 26,080 | — | — | 26,080 | |||||||||||||||
Other assets | 38,374 | 10,126 | 5,053 | — | 53,553 | |||||||||||||||
Total assets | $ | 830,816 | $ | 423,759 | $ | 427,087 | $ | (421,398 | ) | $ | 1,260,264 | |||||||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY: | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of notes payable and long-term debt | $ | 112,275 | $ | 39,013 | $ | 289 | $ | — | $ | 151,577 | ||||||||||
Current portion of fair value of derivatives embedded within convertible debt | 19,128 | — | — | — | 19,128 | |||||||||||||||
Current portion of employee benefits | — | 939 | — | — | 939 | |||||||||||||||
Accounts payable | 1,509 | 4,136 | 4,615 | — | 10,260 | |||||||||||||||
Intercompany payables | — | 39 | 470 | (509 | ) | — | ||||||||||||||
Accrued promotional expenses | — | 18,655 | — | — | 18,655 | |||||||||||||||
Income taxes payable, net | 16,870 | — | — | (10,447 | ) | 6,423 | ||||||||||||||
Accrued excise and payroll taxes payable, net | — | 11,621 | — | — | 11,621 | |||||||||||||||
Litigation accruals and current payments due under the Master Settlement Agreement | — | 84,658 | — | — | 84,658 | |||||||||||||||
Deferred income taxes | 32,309 | 13,425 | — | — | 45,734 | |||||||||||||||
Accrued interest | 21,968 | — | — | — | 21,968 | |||||||||||||||
Other current liabilities | 6,103 | 10,495 | 17,549 | — | 34,147 | |||||||||||||||
Total current liabilities | 210,162 | 182,981 | 22,923 | (10,956 | ) | 405,110 | ||||||||||||||
Notes payable, long-term debt and other obligations, less current portion | 524,182 | 12,573 | 4,011 | — | 540,766 | |||||||||||||||
Fair value of derivatives embedded within convertible debt | 92,934 | — | — | — | 92,934 | |||||||||||||||
Non-current employee benefits | 31,462 | 16,455 | — | — | 47,917 | |||||||||||||||
Deferred income taxes | 65,759 | 37,602 | 34,289 | — | 137,650 | |||||||||||||||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 1,353 | 54,924 | 1,219 | — | 57,496 | |||||||||||||||
Total liabilities | 925,852 | 304,535 | 62,442 | (10,956 | ) | 1,281,873 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders' (deficiency) equity attributed to Vector Group Ltd. | (95,036 | ) | 119,224 | 291,218 | (410,442 | ) | (95,036 | ) | ||||||||||||
Non-controlling interest | — | — | 73,427 | — | 73,427 | |||||||||||||||
Total stockholders' (deficiency) equity | (95,036 | ) | 119,224 | 364,645 | (410,442 | ) | (21,609 | ) | ||||||||||||
Total liabilities and stockholders' deficiency | $ | 830,816 | $ | 423,759 | $ | 427,087 | $ | (421,398 | ) | $ | 1,260,264 | |||||||||
Schedule of Condensed Income Statement | ' | |||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Revenues | $ | — | $ | 253,125 | $ | 153,488 | $ | — | $ | 406,613 | ||||||||||
Expenses: | ||||||||||||||||||||
Cost of sales | — | 181,517 | 97,765 | — | 279,282 | |||||||||||||||
Operating, selling, administrative and general expenses | 4,933 | 22,190 | 39,900 | — | 67,023 | |||||||||||||||
Management fee expense | — | 2,468 | — | (2,468 | ) | — | ||||||||||||||
Operating (loss) income | (4,933 | ) | 46,950 | 15,823 | 2,468 | 60,308 | ||||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest expense | (43,190 | ) | (1,284 | ) | (3 | ) | 294 | (44,183 | ) | |||||||||||
Change in fair value of derivatives embedded within convertible debt | 1,970 | — | — | — | 1,970 | |||||||||||||||
Acceleration of interest expense related to debt conversion | (439 | ) | — | — | — | (439 | ) | |||||||||||||
Equity loss from non-consolidated real estate businesses | — | — | (1,808 | ) | — | (1,808 | ) | |||||||||||||
Equity loss on long-term investments | (273 | ) | — | — | — | (273 | ) | |||||||||||||
Loss on sale of investment securities available for sale | (18 | ) | — | — | — | (18 | ) | |||||||||||||
Equity income in consolidated subsidiaries | 32,408 | — | — | (32,408 | ) | — | ||||||||||||||
Management fee income | 2,468 | — | — | (2,468 | ) | — | ||||||||||||||
Other, net | 1,068 | 224 | 2,577 | (294 | ) | 3,575 | ||||||||||||||
(Loss) income before provision for income taxes | (10,939 | ) | 45,890 | 16,589 | (32,408 | ) | 19,132 | |||||||||||||
Income tax benefit (expense) | 18,864 | (19,716 | ) | (5,249 | ) | — | (6,101 | ) | ||||||||||||
Net income | 7,925 | 26,174 | 11,340 | (32,408 | ) | 13,031 | ||||||||||||||
Net income attributed to non-controlling interest | — | — | (5,106 | ) | — | (5,106 | ) | |||||||||||||
Net income attributed to Vector Group Ltd. | 7,925 | 26,174 | 6,234 | (32,408 | ) | 7,925 | ||||||||||||||
Comprehensive income attributed to non-controlling interest | — | — | (5,106 | ) | — | (5,106 | ) | |||||||||||||
Comprehensive income attributed to Vector Group | $ | 9,436 | $ | 25,464 | $ | 6,234 | $ | (31,698 | ) | $ | 9,436 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Revenues | $ | — | $ | 249,120 | $ | 7,106 | $ | — | $ | 256,226 | ||||||||||
Expenses: | ||||||||||||||||||||
Cost of sales | — | 180,430 | 6,015 | — | 186,445 | |||||||||||||||
Operating, selling, administrative and general expenses | 5,506 | 18,455 | 1,580 | — | 25,541 | |||||||||||||||
Management fee expense | — | 2,377 | — | (2,377 | ) | — | ||||||||||||||
Operating (loss) income | (5,506 | ) | 47,858 | (489 | ) | 2,377 | 44,240 | |||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest expense | (31,723 | ) | (360 | ) | (3 | ) | — | (32,086 | ) | |||||||||||
Change in fair value of derivatives embedded within convertible debt | 2,450 | — | — | — | 2,450 | |||||||||||||||
Equity income from non-consolidated real estate businesses | — | — | 6,804 | — | 6,804 | |||||||||||||||
Equity income on long-term investments | 846 | — | — | — | 846 | |||||||||||||||
Loss on sale of investment securities available for sale | (197 | ) | — | — | — | (197 | ) | |||||||||||||
Equity income in consolidated subsidiaries | 32,277 | — | — | (32,277 | ) | — | ||||||||||||||
Management fee income | 2,377 | — | — | (2,377 | ) | — | ||||||||||||||
Other, net | 1,245 | 150 | 76 | — | 1,471 | |||||||||||||||
Income before provision for income taxes | 1,769 | 47,648 | 6,388 | (32,277 | ) | 23,528 | ||||||||||||||
Income tax benefit (expense) | 11,742 | (19,134 | ) | (2,625 | ) | — | (10,017 | ) | ||||||||||||
Net income | 13,511 | 28,514 | 3,763 | (32,277 | ) | 13,511 | ||||||||||||||
Comprehensive income | $ | 14,633 | $ | 27,179 | $ | 3,763 | $ | (30,942 | ) | $ | 14,633 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Revenues | $ | — | $ | 492,317 | $ | 261,532 | $ | — | $ | 753,849 | ||||||||||
Expenses: | ||||||||||||||||||||
Cost of sales | — | 353,230 | 165,089 | — | 518,319 | |||||||||||||||
Operating, selling, administrative and general expenses | 11,216 | 45,375 | 75,909 | — | 132,500 | |||||||||||||||
Management fee expense | — | 4,935 | — | (4,935 | ) | — | ||||||||||||||
Operating (loss) income | (11,216 | ) | 88,777 | 20,534 | 4,935 | 103,030 | ||||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest expense | (77,972 | ) | (2,239 | ) | (37 | ) | 612 | (79,636 | ) | |||||||||||
Change in fair value of derivatives embedded within convertible debt | 320 | — | — | — | 320 | |||||||||||||||
Acceleration of interest expense related to debt conversion | (4,118 | ) | — | — | — | (4,118 | ) | |||||||||||||
Equity loss from non-consolidated real estate businesses | — | — | (256 | ) | — | (256 | ) | |||||||||||||
Equity income on long-term investments | 633 | — | — | — | 633 | |||||||||||||||
Loss on sale of investment securities available for sale | (71 | ) | — | — | — | (71 | ) | |||||||||||||
Equity income in consolidated subsidiaries | 60,126 | — | — | (60,126 | ) | — | ||||||||||||||
Management fee income | 4,935 | — | — | (4,935 | ) | — | ||||||||||||||
Other, net | 1,766 | 484 | 4,063 | (612 | ) | 5,701 | ||||||||||||||
(Loss) income before provision for income taxes | (25,597 | ) | 87,022 | 24,304 | (60,126 | ) | 25,603 | |||||||||||||
Income tax benefit (expense) | 36,102 | (36,355 | ) | (8,790 | ) | — | (9,043 | ) | ||||||||||||
Net income | 10,505 | 50,667 | 15,514 | (60,126 | ) | 16,560 | ||||||||||||||
Net income attributed to non-controlling interest | — | — | (6,055 | ) | — | (6,055 | ) | |||||||||||||
Net income attributed to Vector Group Ltd. | 10,505 | 50,667 | 9,459 | (60,126 | ) | 10,505 | ||||||||||||||
Comprehensive income attributed to non-controlling interest | — | — | (6,055 | ) | — | (6,055 | ) | |||||||||||||
Comprehensive income attributed to Vector Group Ltd. | $ | 17,324 | $ | 50,659 | $ | 9,459 | $ | (60,118 | ) | $ | 17,324 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Revenues | $ | — | $ | 489,522 | $ | 12,873 | $ | — | $ | 502,395 | ||||||||||
Expenses: | ||||||||||||||||||||
Cost of sales | — | 353,386 | 10,236 | — | 363,622 | |||||||||||||||
Operating, selling, administrative and general expenses | 11,382 | 36,949 | 3,106 | — | 51,437 | |||||||||||||||
Management fee expense | — | 4,754 | — | (4,754 | ) | — | ||||||||||||||
Operating (loss) income | (11,382 | ) | 94,433 | (469 | ) | 4,754 | 87,336 | |||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest expense | (64,683 | ) | (772 | ) | (7 | ) | — | (65,462 | ) | |||||||||||
Change in fair value of derivatives embedded within convertible debt | 5,499 | — | — | — | 5,499 | |||||||||||||||
Loss on extinguishment of debt | (21,458 | ) | — | — | — | (21,458 | ) | |||||||||||||
Equity income from non-consolidated real estate businesses | — | — | 7,285 | — | 7,285 | |||||||||||||||
(Loss) gain on sale of investment securities available for sale | (197 | ) | 5,406 | — | — | 5,209 | ||||||||||||||
Equity income on long-term investments | 823 | — | — | — | 823 | |||||||||||||||
Equity income in consolidated subsidiaries | 63,565 | — | — | (63,565 | ) | — | ||||||||||||||
Management fee income | 4,754 | — | — | (4,754 | ) | — | ||||||||||||||
Other, net | 1,947 | 205 | 128 | — | 2,280 | |||||||||||||||
(Loss) income before provision for income taxes | (21,132 | ) | 99,272 | 6,937 | (63,565 | ) | 21,512 | |||||||||||||
Income tax benefit (expense) | 32,962 | (39,791 | ) | (2,853 | ) | — | (9,682 | ) | ||||||||||||
Net income | 11,830 | 59,481 | 4,084 | (63,565 | ) | 11,830 | ||||||||||||||
Comprehensive income | $ | 18,866 | $ | 61,624 | $ | 4,084 | $ | (65,708 | ) | $ | 18,866 | |||||||||
Schedule of Condensed Cash Flow Statement | ' | |||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Net cash provided by operating activities | $ | 17,374 | $ | 46,294 | $ | 32,279 | $ | (41,952 | ) | $ | 53,995 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Sale of investment securities | 49,296 | — | — | — | 49,296 | |||||||||||||||
Purchase of investment securities | (108,859 | ) | (1,560 | ) | — | — | (110,419 | ) | ||||||||||||
Proceeds from sale or liquidation of long-term investments | 500 | — | 49 | — | 549 | |||||||||||||||
Purchase of long-term investments | (7,000 | ) | — | — | — | (7,000 | ) | |||||||||||||
Investments in non-consolidated real estate businesses | — | — | (12,534 | ) | — | (12,534 | ) | |||||||||||||
Purchase of subsidiaries | — | — | (250 | ) | — | (250 | ) | |||||||||||||
Distributions from non-consolidated real estate businesses | — | — | 3,539 | — | 3,539 | |||||||||||||||
Increase in cash surrender value of life insurance policies | — | (395 | ) | — | — | (395 | ) | |||||||||||||
Decrease (increase) in restricted assets | 299 | 19 | (689 | ) | — | (371 | ) | |||||||||||||
Issuance of notes receivable | (35,000 | ) | — | (250 | ) | 35,000 | (250 | ) | ||||||||||||
Investments in subsidiaries | (25,267 | ) | — | — | 25,267 | — | ||||||||||||||
Proceeds from sale of fixed assets | — | 4 | — | — | 4 | |||||||||||||||
Capital expenditures | (11 | ) | (6,563 | ) | (3,570 | ) | — | (10,144 | ) | |||||||||||
Repayments of notes receivable | 35,933 | — | — | (35,000 | ) | 933 | ||||||||||||||
Net cash used in investing activities | (90,109 | ) | (8,495 | ) | (13,705 | ) | 25,267 | (87,042 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from debt issuance | 408,750 | 40,166 | — | (35,000 | ) | 413,916 | ||||||||||||||
Deferred financing costs | (12,360 | ) | — | — | — | (12,360 | ) | |||||||||||||
Repayments of debt | — | (39,293 | ) | (3,758 | ) | 35,000 | (8,051 | ) | ||||||||||||
Borrowings under revolver | — | 429,188 | — | — | 429,188 | |||||||||||||||
Repayments on revolver | — | (437,736 | ) | — | — | (437,736 | ) | |||||||||||||
Capital contributions received | — | 3,150 | 22,117 | (25,267 | ) | — | ||||||||||||||
Intercompany dividends paid | — | (30,000 | ) | (11,952 | ) | 41,952 | — | |||||||||||||
Dividends and distributions on common stock | (80,963 | ) | — | — | — | (80,963 | ) | |||||||||||||
Distributions to non-controlling interest | — | — | (3,075 | ) | — | (3,075 | ) | |||||||||||||
Proceeds from exercise of Vector options | 3,405 | — | — | — | 3,405 | |||||||||||||||
Tax benefit of options exercised | 680 | — | — | — | 680 | |||||||||||||||
Net cash provided by (used in) financing activities | 319,512 | (34,525 | ) | 3,332 | 16,685 | 305,004 | ||||||||||||||
Net increase in cash and cash equivalents | 246,777 | 3,274 | 21,906 | — | 271,957 | |||||||||||||||
Cash and cash equivalents, beginning of period | 151,342 | 11,812 | 71,312 | — | 234,466 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 398,119 | $ | 15,086 | $ | 93,218 | $ | — | $ | 506,423 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
Subsidiary | Consolidated | |||||||||||||||||||
Parent/ | Subsidiary | Non- | Consolidating | Vector Group | ||||||||||||||||
Issuer | Guarantors | Guarantors | Adjustments | Ltd. | ||||||||||||||||
Net cash provided by operating activities | $ | 5,204 | $ | 57,823 | $ | 2,187 | $ | (60,024 | ) | $ | 5,190 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Sale of investment securities | 36,533 | 6,582 | — | — | 43,115 | |||||||||||||||
Purchase of investment securities | (79,368 | ) | (11,000 | ) | — | — | (90,368 | ) | ||||||||||||
Proceeds from sale of or liquidation of long-term investments | — | — | 75 | — | 75 | |||||||||||||||
Purchase of long-term investments | (5,000 | ) | — | — | — | (5,000 | ) | |||||||||||||
Investments in non-consolidated real estate businesses | — | — | (19,048 | ) | — | (19,048 | ) | |||||||||||||
Investments in consolidated real estate businesses | — | — | (7,657 | ) | — | (7,657 | ) | |||||||||||||
Decrease (increase) in cash surrender value of life insurance policies | 79 | (382 | ) | — | — | (303 | ) | |||||||||||||
Decrease (increase) in restricted assets | 6 | (1,274 | ) | — | — | (1,268 | ) | |||||||||||||
Repayments of notes receivable | 8,433 | — | — | — | 8,433 | |||||||||||||||
Proceeds from sale of fixed assets | — | 13 | — | — | 13 | |||||||||||||||
Investments in subsidiaries | (43,584 | ) | — | — | 43,584 | — | ||||||||||||||
Capital expenditures | (2,247 | ) | (3,319 | ) | (429 | ) | — | (5,995 | ) | |||||||||||
Net cash used in investing activities | (85,148 | ) | (9,380 | ) | (27,059 | ) | 43,584 | (78,003 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from debt issuance | 450,000 | — | 3,080 | — | 453,080 | |||||||||||||||
Deferred financing costs | (11,663 | ) | — | — | — | (11,663 | ) | |||||||||||||
Repayments of debt | (415,000 | ) | (3,763 | ) | (70 | ) | — | (418,833 | ) | |||||||||||
Borrowings under revolver | — | 474,493 | — | — | 474,493 | |||||||||||||||
Repayments on revolver | — | (476,888 | ) | — | — | (476,888 | ) | |||||||||||||
Capital contributions received | — | 12,300 | 31,284 | (43,584 | ) | — | ||||||||||||||
Intercompany dividends paid | — | (50,582 | ) | (9,442 | ) | 60,024 | — | |||||||||||||
Dividends and distributions on common stock | (71,518 | ) | — | — | — | (71,518 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (48,181 | ) | (44,440 | ) | 24,852 | 16,440 | (51,329 | ) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (128,125 | ) | 4,003 | (20 | ) | — | (124,142 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 401,344 | 3,776 | 735 | — | 405,855 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 273,219 | $ | 7,779 | $ | 715 | $ | — | $ | 281,713 | ||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies Schedule of revision of prior period gross revenues and costs (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Tobacco | $250,556 | [1] | $249,120 | [1] | $483,948 | [1] | $489,522 | [1] |
Real estate | 153,488 | 7,106 | 261,532 | 12,873 | ||||
Total revenues | 406,613 | 256,226 | 753,849 | 502,395 | ||||
Tobacco | 179,773 | [1] | 180,430 | [1] | 347,939 | [1] | 353,386 | [1] |
Real estate | 97,763 | 6,015 | 165,087 | 10,236 | ||||
Total cost of sales | 279,282 | 186,445 | 518,319 | 363,622 | ||||
Operating, selling, administrative and general expenses | 67,023 | 25,541 | 132,500 | 51,437 | ||||
As Previously Reported [Member] | ' | ' | ' | ' | ||||
Tobacco | ' | 0 | ' | 0 | ||||
Real estate | ' | 0 | ' | 0 | ||||
Total revenues | ' | 249,120 | ' | 489,522 | ||||
Tobacco | ' | 0 | ' | 0 | ||||
Real estate | ' | 0 | ' | 0 | ||||
Total cost of sales | ' | 180,430 | ' | 353,386 | ||||
Operating, selling, administrative and general expenses | ' | 24,450 | ' | 48,800 | ||||
Revision [Member] | ' | ' | ' | ' | ||||
Tobacco | ' | 249,120 | ' | 489,522 | ||||
Real estate | ' | 7,106 | ' | 12,873 | ||||
Total revenues | ' | 7,106 | ' | 12,873 | ||||
Tobacco | ' | 180,430 | ' | 353,386 | ||||
Real estate | ' | 6,015 | ' | 10,236 | ||||
Total cost of sales | ' | 6,015 | ' | 10,236 | ||||
Operating, selling, administrative and general expenses | ' | 1,091 | ' | 2,637 | ||||
Revenue [Member] | Revision [Member] | ' | ' | ' | ' | ||||
Revision | ' | -249,120 | ' | -489,522 | ||||
Cost of Sales [Member] | Revision [Member] | ' | ' | ' | ' | ||||
Revision | ' | ($180,430) | ' | ($353,386) | ||||
[1] | Revenues and cost of sales include excise taxes of $109,695, $112,596, $212,108 and $221,507, respectively. |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Basic Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Net income attributed to Vector Group Ltd. | $7,925 | $13,511 | $10,505 | $11,830 |
Income attributed to participating securities | -231 | -374 | -309 | -328 |
Net income attributed to Vector Group Ltd. available to common stockholders | $7,694 | $13,137 | $10,196 | $11,502 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies Basic and Diluted Earnings Per Share, Shares (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Weighted-average shares for basic EPS | 96,760,894 | 91,167,749 | 95,686,399 | 91,165,686 |
Plus incremental shares related to stock options and non-vested restricted stock | 101,258 | 216,890 | 112,293 | 205,721 |
Weighted-average shares for basic and fully diluted EPS | 96,862,152 | 91,384,639 | 95,798,692 | 91,371,407 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies Antidilutive Securities Excluded from Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Number of stock options | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | ' | 0 | ' |
Weighted-average shares of non-vested restricted stock | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 56,175 | 0 | 56,175 |
Weighted-average expense per share (dollars per share) | ' | $15.58 | ' | $15.58 |
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 of earnings per share (in shares) | 32,493,002 | 28,310,522 | 29,105,625 | 28,310,522 |
Weighted-average conversion price (dollars per share) | 19.02 | $15.22 | 17.56 | $15.22 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies Textuals (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Sep. 28, 2012 | Jul. 23, 2014 | Jul. 23, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | New Valley LLC [Member] | |||||||
Performance Shares [Member] | Performance Shares [Member] | Douglas Elliman Realty LLC [Member] | |||||||||||
Chief Executive Officer [Member] | Chief Executive Officer [Member] | ||||||||||||
Summary of Investment Holdings [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock dividend paid to company stockholders | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' |
Real estate revenue | $153,488 | $7,106 | $261,532 | $12,873 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of real estate | 97,763 | 6,015 | 165,087 | 10,236 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating, selling, administrative and general expenses | 67,023 | 25,541 | 132,500 | 51,437 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -454 |
Total current liabilities | 380,312 | ' | 380,312 | ' | 405,110 | ' | ' | ' | ' | ' | ' | ' | -105 |
Intangible assets. net | 8,755 | ' | 8,755 | ' | 11,919 | ' | ' | ' | ' | ' | ' | ' | 559 |
Fair market value of embedded derivatives at the midpoint of the inputs | 191,554 | ' | 191,554 | ' | 112,062 | ' | ' | ' | 189,358 | 110,758 | 193,797 | 113,392 | ' |
Common stock granted | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Period of recognition | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' |
Allocated share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | $20,660 | ' | ' | ' | ' | ' |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies Schedule of Other Income (Loss), Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Gain (loss) on warrants | $45 | ($28) | ($123) | $37 |
Interest income | 1,189 | 826 | 2,189 | 1,476 |
Accretion of interest income from debt discount on notes receivable | 10 | 588 | 76 | 623 |
Out-of-period adjustment | 0 | 0 | 1,231 | 0 |
Acceleration of closing fee related to termination of Douglas Elliman joint venture | 2,335 | 0 | 2,335 | 0 |
Gain on long-term investment | 0 | 142 | 0 | 142 |
Other (expense) income | -4 | -57 | -7 | 2 |
Other income, net | $3,575 | $1,471 | $5,701 | $2,280 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Line Items] | ' | ' |
Leaf tobacco | $59,506 | $49,140 |
Other raw materials | 3,196 | 3,161 |
Work-in-process | 388 | 353 |
Finished goods | 65,021 | 67,201 |
E-Cigarettes | 9,705 | 839 |
Inventories at current cost | 137,816 | 120,694 |
LIFO adjustments | -29,559 | -27,198 |
Inventory, net | 108,257 | 93,496 |
Liggett [Member] | Leaf tobacco [Member] | ' | ' |
Inventories [Line Items] | ' | ' |
Purchase commitments | 17,277 | ' |
Liggett [Member] | E-Cigarettes [Member] | ' | ' |
Inventories [Line Items] | ' | ' |
Purchase commitments | $538 | ' |
Investment_Securities_Availabl2
Investment Securities Available for Sale (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | $168,702 | $106,649 |
Gross Unrealized Gains | 70,787 | 67,348 |
Gross Unrealized Losses | -1,722 | -1,463 |
Fair Value | 237,767 | 172,534 |
Marketable equity securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 55,602 | 53,586 |
Gross Unrealized Gains | 68,738 | 65,851 |
Gross Unrealized Losses | -1,306 | -963 |
Fair Value | 123,034 | 118,474 |
Mutual funds invested in fixed income securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 60,217 | ' |
Gross Unrealized Gains | 305 | ' |
Gross Unrealized Losses | 0 | ' |
Fair Value | 60,522 | ' |
Marketable debt securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 52,883 | 53,063 |
Gross Unrealized Gains | 1,744 | 1,497 |
Gross Unrealized Losses | -416 | -500 |
Fair Value | $54,211 | $54,060 |
Investment_Securities_Availabl3
Investment Securities Available for Sale (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | $237,767 | $172,534 |
U.S. Government securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Under 1 Year | 830 | ' |
1 Year up to 5 Years | 10,367 | ' |
5 Year up to 10 Years | 0 | ' |
Fair Value | 11,197 | ' |
Corporate securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Under 1 Year | 2,906 | ' |
1 Year up to 5 Years | 20,206 | ' |
5 Year up to 10 Years | 7,536 | ' |
Fair Value | 30,648 | ' |
U.S. mortgage backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Under 1 Year | 0 | ' |
1 Year up to 5 Years | 214 | ' |
5 Year up to 10 Years | 0 | ' |
Fair Value | 214 | ' |
Commercial mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Under 1 Year | 854 | ' |
1 Year up to 5 Years | 5,791 | ' |
5 Year up to 10 Years | 0 | ' |
Fair Value | 6,645 | ' |
U.S. asset backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Under 1 Year | 0 | ' |
1 Year up to 5 Years | 5,061 | ' |
5 Year up to 10 Years | 0 | ' |
Fair Value | 5,061 | ' |
Government agencies | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Under 1 Year | 0 | ' |
1 Year up to 5 Years | 192 | ' |
5 Year up to 10 Years | 0 | ' |
Fair Value | 192 | ' |
Index-linked U.S. bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Under 1 Year | 0 | ' |
1 Year up to 5 Years | 254 | ' |
5 Year up to 10 Years | 0 | ' |
Fair Value | 254 | ' |
Marketable debt securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Under 1 Year | 4,590 | ' |
1 Year up to 5 Years | 42,085 | ' |
5 Year up to 10 Years | 7,536 | ' |
Fair Value | $54,211 | $54,060 |
LongTerm_Investments_Details
Long-Term Investments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term investments accounted for at cost | $27,239 | $20,788 |
Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term investments accounted for at cost | 27,239 | 20,788 |
Total | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cost method investments, fair value disclosure | 33,767 | 25,162 |
Real estate partnership [Member] | Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term investments accounted for at cost | 698 | 747 |
Real estate partnership [Member] | Total | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cost method investments, fair value disclosure | 1,148 | 1,067 |
Investment partnerships [Member] | Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term investments accounted for at cost | 26,541 | 20,041 |
Investment partnerships [Member] | Total | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cost method investments, fair value disclosure | $32,619 | $24,095 |
LongTerm_Investments_Narrative
Long-Term Investments (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Contributions to acquire interest | ' | ' | $7,000 | ' | ' |
Equity (loss) income from non-consolidated real estate businesses | -1,808 | 6,804 | -256 | 7,285 | ' |
Long-term investments accounted for under the equity method | 17,842 | ' | 17,842 | ' | 8,595 |
Limited Partnership [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Equity (loss) income from non-consolidated real estate businesses | -273 | 846 | ' | ' | ' |
Hedge Funds [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Equity (loss) income from non-consolidated real estate businesses | ' | ' | 633 | 823 | ' |
Long-term investments accounted for under the equity method | $17,842 | ' | $17,842 | ' | $8,595 |
New_Valley_LLC_Details
New Valley LLC (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 13, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | 12-May-14 | Jun. 30, 2014 | Jun. 30, 2013 |
New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | ||||||
Douglas Elliman Realty LLC [Member] | Douglas Elliman Realty LLC [Member] | Douglas Elliman Realty LLC [Member] | Douglas Elliman Realty LLC [Member] | Douglas Elliman Realty LLC [Member] | Land Development [Member] | Land Development [Member] | Sesto Holdings [Member] | Sesto Holdings [Member] | Condominium and Mixed Use Development [Member] | Condominium and Mixed Use Development [Member] | Condominium and Mixed Use Development [Member] | Condominium and Mixed Use Development [Member] | Condominium and Mixed Use Development [Member] | Condominium and Mixed Use Development [Member] | Condominium and Mixed Use Development [Member] | 10 Madison Square Park West (f/k/a 1107 Broadway) [Member] | 10 Madison Square Park West (f/k/a 1107 Broadway) [Member] | The Whitman [Member] | The Whitman [Member] | The Marquand [Member] | The Marquand [Member] | Eleven Beach Street [Member] | Eleven Beach Street [Member] | 701 Seventh Avenue [Member] | 701 Seventh Avenue [Member] | 101 Murray Street [Member] | 101 Murray Street [Member] | Leroy Street [Member] | Leroy Street [Member] | PUBLIC Chrystie House (f/k/a Chrystie Street) [Member] | PUBLIC Chrystie House (f/k/a Chrystie Street) [Member] | 25-19 43rd Avenue [Member] | 25-19 43rd Avenue [Member] | 23-10 Queens Plaza South [Member] | 23-10 Queens Plaza South [Member] | 8701 Collins Avenue [Member] | 8701 Collins Avenue [Member] | Apartment Buildings [Member] | Apartment Buildings [Member] | Apartment Buildings [Member] | Apartment Buildings [Member] | Apartment Buildings [Member] | Apartment Buildings [Member] | Apartment Buildings [Member] | Maryland Portfolio [Member] | Maryland Portfolio [Member] | ST Portfolio [Member] | ST Portfolio [Member] | Hotels [Member] | Hotels [Member] | Hotels [Member] | Hotels [Member] | Hotels [Member] | Hotels [Member] | Park Lane Hotel [Member] | Park Lane Hotel [Member] | Hotel Taiwana [Member] | Hotel Taiwana [Member] | Coral Beach [Member] | Coral Beach [Member] | Other Investments [Member] | Other Investments [Member] | Indian Creek [Member] | Indian Creek [Member] | Indian Creek [Member] | ||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 49.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | 16.40% | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 49.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% |
Percent of acquired interest in affiliate | ' | ' | ' | ' | ' | ' | ' | 20.59% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership Percentage in Affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.59% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in subsidiaries | ' | ' | $0 | $0 | ' | ' | ' | $60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -454 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total current liabilities | 380,312 | ' | 380,312 | ' | 405,110 | ' | ' | ' | ' | ' | -105 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets. net | 8,755 | ' | 8,755 | ' | 11,919 | ' | ' | ' | ' | ' | 559 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity (loss) income from non-consolidated real estate businesses | -1,808 | 6,804 | -256 | 7,285 | ' | ' | ' | ' | 6,815 | 7,438 | ' | ' | ' | ' | ' | ' | 7 | 130 | 2,299 | 130 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -217 | -142 | -164 | -283 | ' | ' | ' | ' | ' | ' | ' | -857 | -2,171 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions from non-consolidated real estate businesses | ' | ' | -3,539 | 0 | ' | ' | ' | ' | ' | -2,636 | ' | ' | ' | ' | ' | ' | ' | ' | -5,791 | -130 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -250 | -125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7,100 | ' | ' |
Investments in non-consolidated real estate businesses | 133,629 | ' | 133,629 | ' | 128,202 | 133,629 | 128,202 | ' | ' | ' | ' | ' | 5,037 | 5,037 | 5,037 | 5,037 | 78,562 | ' | 78,562 | ' | 71,358 | ' | ' | 6,384 | 6,579 | 526 | 1,165 | 7,000 | 7,000 | 12,328 | 11,160 | 11,324 | 11,148 | 23,006 | 19,256 | 652 | 1,150 | 3,081 | 2,048 | 733 | 0 | 9,528 | 8,058 | 4,000 | 3,794 | 19,068 | ' | 19,068 | ' | 19,482 | ' | ' | 3,518 | 3,498 | 15,550 | 15,984 | 28,324 | 28,324 | 29,906 | ' | ' | ' | 17,447 | 19,514 | 7,467 | 7,428 | 3,410 | 2,964 | 2,638 | 2,419 | ' | ' | 7,616 |
Long-term investments accounted for under the equity method | 17,842 | ' | 17,842 | ' | 8,595 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,696 | 15,392 | 10,696 | 15,392 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 589 | 589 | ' | 3,655 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum exposure to loss as a result of this investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 78,562 | ' | 78,562 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,068 | ' | 19,068 | ' | ' | ' | ' | ' | ' | ' | ' | 28,324 | 28,324 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,400 | ' | ' |
Operating income (loss) | $60,308 | $44,240 | $103,030 | $87,336 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,400 | ' |
New_Valley_LLC_Summarized_Fina
New Valley LLC Summarized Financial Information (Details) (Douglas Elliman Realty LLC [Member], New Valley LLC [Member], USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Douglas Elliman Realty LLC [Member] | New Valley LLC [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Revenues | $113,647 | $188,184 |
Costs and expenses | 100,093 | 173,707 |
Depreciation expense | 985 | 1,958 |
Amortization expense | 55 | 111 |
Other income | 261 | 403 |
Interest income, net | 8 | 8 |
Income tax expense | 301 | 242 |
Net income | $12,482 | $12,577 |
New_Valley_LLC_Schedule_of_Con
New Valley LLC Schedule of Consolidated Real Estate Investments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment Holdings [Line Items] | ' | ' |
Real estate held for sale, net | $10,669 | $20,911 |
New Valley LLC [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Real estate held for sale, net | 10,669 | 20,911 |
New Valley LLC [Member] | Escena [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Real estate held for sale, net | 10,669 | 10,625 |
New Valley LLC [Member] | Indian Creek [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Real estate held for sale, net | $0 | $10,286 |
New_Valley_LLC_Investment_in_E
New Valley LLC Investment in Escena (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Oct. 30, 2013 |
Escena [Member] | Escena [Member] | Escena [Member] | Escena [Member] | Escena [Member] | Escena [Member] | Escena [Member] | |||||
New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | |||||||||
hole | |||||||||||
residential_unit | |||||||||||
acre | |||||||||||
room | |||||||||||
Investment Holdings [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of residential lots sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 |
Number of residential lots | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 867 |
Number of residential lots remaining | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 667 |
Number of holes in golf course | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18 |
Area of land | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
Number of units in real estate property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450 |
Land and land improvements | ' | ' | ' | ' | ' | ' | ' | ' | $8,930 | $8,930 | ' |
Building and building improvements | ' | ' | ' | ' | ' | ' | ' | ' | 1,830 | 1,530 | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 1,526 | 1,577 | ' |
Total Investment in Escena before depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 12,286 | 12,037 | ' |
Less accumulated depreciation | ' | ' | ' | ' | ' | ' | ' | ' | -1,617 | -1,412 | ' |
Investment in Escena, net | ' | ' | ' | ' | ' | ' | ' | ' | 10,669 | 10,625 | ' |
Operating income (loss) | $60,308 | $44,240 | $103,030 | $87,336 | ($287) | ($307) | $233 | $76 | ' | ' | ' |
Notes_Payable_LongTerm_Debt_an1
Notes Payable, Long-Term Debt and Other Obligations (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 14, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | 20-May-14 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 24, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | 6.75% Variable Interest Senior Convertible Note due 2014, net of unamortized discount of $4,895 and $19,311 | 6.75% Variable Interest Senior Convertible Note due 2014, net of unamortized discount of $4,895 and $19,311 | 6.75% Variable Interest Senior Convertible Exchange Notes due 2014, net of unamortized discount of $11,569 and $25,944 | 6.75% Variable Interest Senior Convertible Exchange Notes due 2014, net of unamortized discount of $11,569 and $25,944 | 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $151,675 and $155,817 | 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $151,675 and $155,817 | 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $104,496 and $0 | 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $104,496 and $0 | Secured Debt | Secured Debt | Secured Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Equipment loans | Equipment loans | Other | Other | ||
7.75% Senior Secured Notes due 2021, including premium of $9,879 and $0 | 7.75% Senior Secured Notes due 2021, including premium of $9,879 and $0 | 7.75% Senior Secured Notes due 2021, including premium of $9,879 and $0 | 7.75% Senior Secured Notes due 2021, including premium of $9,879 and $0 | 7.75% Senior Secured Notes due 2021, including premium of $9,879 and $0 | 6.75% Variable Interest Senior Convertible Note due 2014, net of unamortized discount of $4,895 and $19,311 | 6.75% Variable Interest Senior Convertible Note due 2014, net of unamortized discount of $4,895 and $19,311 | 6.75% Variable Interest Senior Convertible Note due 2014, net of unamortized discount of $4,895 and $19,311 | 6.75% Variable Interest Senior Convertible Exchange Notes due 2014, net of unamortized discount of $11,569 and $25,944 | 6.75% Variable Interest Senior Convertible Exchange Notes due 2014, net of unamortized discount of $11,569 and $25,944 | 6.75% Variable Interest Senior Convertible Exchange Notes due 2014, net of unamortized discount of $11,569 and $25,944 | 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $151,675 and $155,817 | 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $151,675 and $155,817 | 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $104,496 and $0 | 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $104,496 and $0 | 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $104,496 and $0 | Revolving credit facility | Revolving credit facility | Term loan under credit facility | Term loan under credit facility | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | |||||||||||
Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.75% | ' | ' | 6.75% | 6.75% | ' | 6.75% | 6.75% | ' | 7.50% | ' | 5.50% | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total notes payable, long-term debt and other obligations | $995,477 | $692,343 | ' | ' | ' | ' | ' | ' | ' | ' | $609,879 | $450,000 | ' | ' | ' | $20,105 | ' | $30,689 | $88,461 | ' | $81,586 | $78,325 | $74,183 | $154,254 | ' | $0 | $21,876 | $30,424 | $3,737 | $3,884 | $18,237 | $17,252 | $603 | $4,325 |
Amount due after one year | 853,669 | 540,766 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,879 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,895 | ' | 19,311 | 11,569 | ' | 25,944 | 104,496 | 0 | 151,675 | ' | 155,817 | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Current maturities | -141,808 | -151,577 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the derivatives embedded | $183,786 | $92,934 | $1,716 | $6,607 | $6,052 | $12,521 | $96,569 | $92,934 | $87,217 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes_Payable_LongTerm_Debt_an2
Notes Payable, Long-Term Debt and Other Obligations Non Cash Interest Expense (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Amortization of debt discount | $7,563 | $8,464 | $20,019 | $15,812 |
Amortization of deferred finance costs | 1,055 | 447 | 1,763 | 1,044 |
Loss on extinguishment of 11% Senior Secured Notes | 0 | 0 | 0 | 3,638 |
Non-cash Interest Expense | 9,057 | 8,911 | 25,900 | 20,494 |
6.75% Variable Interest Senior Convertible Note due 2014 - Vector | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Acceleration of interest expense | 0 | 0 | 3,679 | ' |
6.75% Variable Interest Senior Convertible Exchange Notes due 2014 | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Acceleration of interest expense | 439 | 0 | 439 | ' |
Convertible Debt [Member] | 6.75% Variable Interest Senior Convertible Note due 2014 - Vector | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Acceleration of interest expense | ' | ' | ' | 0 |
Convertible Debt [Member] | 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Acceleration of interest expense | ' | ' | ' | $0 |
Notes_Payable_LongTerm_Debt_an3
Notes Payable, Long-Term Debt and Other Obligations Fair Value of Notes Payable and Long Term Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Notes payable and long-term debt | $1,473,738 | ' |
Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Notes payable and long-term debt | 995,477 | 692,343 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Notes payable and long-term debt | ' | $1,006,562 |
Notes_Payable_LongTerm_Debt_an4
Notes Payable, Long-Term Debt and Other Obligations (Textuals) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 15, 2014 | Jun. 30, 2014 | Feb. 28, 2013 | Mar. 14, 2014 | Jun. 30, 2014 | 20-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | 20-May-14 | Mar. 24, 2014 | Jun. 30, 2014 | Mar. 24, 2014 | Jun. 30, 2014 | |
Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Line of Credit [Member] | |||||
7.75% Senior Secured Notes Due 2021 [Member] | 7.75% Senior Secured Notes Due 2021 [Member] | 7.75% Senior Secured Notes Due 2021 [Member] | 6.75% Variable Interest Senior Convertible Note due 2014 - Vector | 6.75% Variable Interest Senior Convertible Note due 2014 - Vector | 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 | 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 | 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 | 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 | 5.5% Variable Interest Senior Convertible Notes due 2020 | 5.5% Variable Interest Senior Convertible Notes due 2020 | Variable Interest 7.50% Senior Convertible Debentures [Member] | Revolving Credit and Term Loan Facility [Member] | |||||
Liggett [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt amount | ' | ' | ' | ' | $150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $258,750,000 | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | 7.75% | 6.75% | 6.75% | ' | 6.75% | 6.75% | 6.75% | 5.50% | 5.50% | ' | ' |
Proceeds from debt issuance | ' | ' | 413,916,000 | 453,080,000 | 158,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | 250,300,000 | ' | ' | ' |
Redemption price | ' | ' | ' | ' | 106.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27.16 | ' | ' | ' |
Converted amount | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | 7,500,000 | ' | ' | ' | ' | ' | ' | ' |
Convertible principal balance | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | 107,530,000 | ' | ' | ' | ' | ' | ' | ' |
Note conversion (in shares) | ' | ' | ' | ' | ' | ' | ' | 2,121,479 | ' | 560,987 | ' | ' | ' | ' | ' | ' | ' |
Acceleration of interest expense related to debt conversion | 439,000 | 0 | 4,118,000 | 0 | ' | ' | ' | ' | 3,679,000 | ' | 439,000 | 439,000 | ' | ' | ' | ' | ' |
Increase in equity from conversion | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | 7,500,000 | ' | ' | ' | ' | ' |
Interest Rate | ' | ' | ' | ' | ' | 7.75% | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' |
Conversion basis amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Conversion basis shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36.8155 | ' | ' | ' |
Percent of principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,613,000 |
Remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24,387,000 |
Contingencies_Details
Contingencies (Details) (USD $) | 6 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 31, 2000 | Oct. 23, 2013 | Feb. 28, 2014 | Dec. 31, 2013 | Oct. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2009 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 31-May-13 | 31-May-03 | Jul. 31, 2000 | Apr. 30, 2000 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Liggett [Member] | Liggett [Member] | Engle Progeny Cases [Member] | Engle Progeny Cases [Member] | Engle Progeny Cases [Member] | Engle Progeny Cases [Member] | Engle Progeny Cases [Member] | Engle Progeny Cases [Member] | Engle Progeny Cases [Member] | Engle Progeny Cases [Member] | Engle Progency Cases Excluding Lukacs [Member] | Clay v R J Reynolds [Member] | Calloway v RJ Reynolds [Member] | Non-Engle Progency Cases [Member] | West Virginia State Court Cases [Member] | Florida [Member] | New York [Member] | Maryland [Member] | Louisiana [Member] | West Virginia [Member] | Missouri [Member] | Ohio [Member] | Engle Case Class Action [Member] | Engle Case Class Action [Member] | Engle Case Class Action [Member] | Engle Case Class Action [Member] | Engle Case Class Action [Member] | Campbell v R J Reynolds [Member] | Putney v R J Reynolds [Member] | Tullo v R J Reynolds [Member] | Ward v R J Reynolds [Member] | Buchanan v. R.J. Reynolds [Member] | Cohen v. R.J. Reynolds [Member] | Rizzuto v. R.J. Reynolds [Member] | Rizzuto v. R.J. Reynolds [Member] | Douglas v R J Reynolds [Member] | Lukacs case [Member] | Liggett Only Cases [Member] | Individual Actions [Member] | Class Actions [Member] | Price Fixing [Member] | Parsons v. AC & S Inc. [Member] | Tobacco Litigation Personal Injury Cases [Member] | Tobacco Litigation Personal Injury Cases [Member] | Health Care Cost Recovery Actions [Member] | Lukacs, Campbell, Douglas, Clay and Ward [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | Minimum [Member] | Maximum [Member] | Pending Litigation [Member] | ||
Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett Only Cases [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | case | Liggett Only Cases [Member] | case | Liggett [Member] | defendant | case | Liggett [Member] | Liggett [Member] | Liggett and Vector Tobacco [Member] | Liggett and Vector Tobacco [Member] | Engle Progency Cases Excluding Lukacs [Member] | Engle Progency Cases Excluding Lukacs [Member] | Liggett [Member] | |||||||||||
plaintiff | case | case | case | case | case | case | case | case | case | case | case | case | plaintiff | plaintiff | case | case | case | case | case | Liggett [Member] | Liggett [Member] | |||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for legal settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,540,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cases pending | ' | ' | ' | ' | 330 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49 | 100 | 30 | 9 | 4 | 2 | 2 | 1 | 1 | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 3 | 4 | 1 | ' | 750 | 100 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlements of litigation | ' | ' | ' | ' | ' | ' | ' | 4,900 | 144 | ' | ' | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defense Verdicts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages awarded | ' | 25,173,000 | ' | 145,000,000,000 | 110,000,000 | ' | ' | ' | 1,170,000 | ' | ' | ' | 349,000 | 1,947,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 790,000,000 | 12,704,000 | ' | 156,000 | 3,008,000 | 225,000 | 1,000 | 2,035,000 | 205,000 | ' | 3,479,000 | 1,350,000 | 12,418,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | 3,479,000 | 10,899,000 |
Damages paid | ' | -14,274,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Punitive damages | ' | 8,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 7,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,600,000 |
Punitive damages paid | ' | -1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated litigation liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of plaintiffs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement consideration paid in lump sum | ' | ' | ' | ' | 61,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement Fund Amount | ' | ' | ' | ' | ' | 59,500,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement consideration paid in equal monthly installments over next 15 years | ' | ' | ' | ' | 48,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement consideration installment payments term | ' | ' | ' | ' | '14 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement and judgment expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,213,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement and judgement expense, amount discounted | ' | ' | ' | ' | 25,213,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate | ' | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected payments yearly for 2014 through 2017 | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Plaintiffs verdicts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Over turned judgment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,831,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term case tried prior to final decision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) related to litigation settlement | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,419,000 | -1,345,000 | -1,419,000 | -6,947,000 | 1,345,000 | 5,602,000 | ' | ' | ' |
Accrued expense for this matter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,809,000 | ' | ' | ' | ' |
Claims scheduled for trial | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages sought | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal expenses and other litigation costs | ' | 5,174,000 | 3,562,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bonds | ' | 5,093,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of defendants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bond cap | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingencies_MSA_and_Other_St
Contingencies MSA and Other State Settlement Agreements (Details) (USD $) | 6 Months Ended | 6 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | 25 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 78 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Nov. 30, 1998 | Mar. 31, 1998 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Nov. 30, 1998 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2003 | Sep. 30, 2012 | Dec. 17, 2012 | Nov. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 15, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | Apr. 15, 2014 | Apr. 02, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2003 | Dec. 31, 2011 | Jun. 30, 2014 | Feb. 29, 2012 | Jul. 31, 2000 | Oct. 23, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Liggett and Vector Tobacco [Member] | Liggett [Member] | Liggett Vector Brands [Member] | Putney, Tullo, Calloway, Buchanan, Cohen and Rizzuto [Member] | Damages From Cigarette Smoking MSA and Other State Settlement Agreements [Member] | Damages From Cigarette Smoking MSA and Other State Settlement Agreements [Member] | Damages From Cigarette Smoking MSA and Other State Settlement Agreements [Member] | Damages From Cigarette Smoking MSA and Other State Settlement Agreements [Member] | Damages From Cigarette Smoking MSA and Other State Settlement Agreements [Member] | Damages From Cigarette Smoking MSA and Other State Settlement Agreements [Member] | Damages From Cigarette Smoking MSA and Other State Settlement Agreements [Member] | Master Settlement Agreement [Member] | Master Settlement Agreement [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | NPM Adjustment [Member] | Gross Versus Net Dispute [Member] | Gross Versus Net Dispute Relief Granted [Member] | Minnesota Settlement [Member] | Florida Settlement [Member] | Florida Settlement [Member] | Mississippi Settlement [Member] | Engle Progeny Cases [Member] | Engle Progeny Cases [Member] | Engle Progeny Cases [Member] | Engle Progeny Cases [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||
Liggett [Member] | Liggett and Vector Tobacco [Member] | Liggett and Vector Tobacco [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Vector Tobacco [Member] | Liggett [Member] | state | state | state | state | state | state | Liggett and Vector Tobacco [Member] | Liggett and Vector Tobacco [Member] | Liggett and Vector Tobacco [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | Liggett [Member] | NPM Adjustment [Member] | Florida Settlement [Member] | Master Settlement Agreement [Member] | NPM Adjustment [Member] | Florida Settlement [Member] | ||||||||||
state | state | state | year | Liggett [Member] | Liggett [Member] | sponsorship | Liggett [Member] | Liggett [Member] | |||||||||||||||||||||||||||||||||||||
year | year | ||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum loss exposure | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of States | ' | ' | ' | ' | ' | ' | ' | ' | 46 | 45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of brand name sponsorships allowed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Brand name sponsorship period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual payment requirement | ' | ' | ' | ' | ' | 9,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
MSA payment obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment obligations | ' | ' | 1.65% | ' | ' | ' | ' | ' | ' | ' | 1.63% | 0.28% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.63% | ' | ' | 1.65% | ' |
Total cigarettes sold | ' | 3.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement payment | ' | ' | -25,173,000 | ' | ' | ' | -95,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,200,000 | ' | ' | -145,000,000,000 | -110,000,000 | -1,170,000 | ' | ' | ' | ' | ' | ' |
Settlement Accruals | ' | ' | ' | ' | ' | ' | ' | 16,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate number of settling states | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts not expensed by the Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Courts that did not rule | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Courts that decided the issue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settling states | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocable share of settling states | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction of any Potential 2003 NPM Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of settling states with diligent enforcement not contested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-settling states | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-settling states that did not diligently enforce escrow statutes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement adjustment credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,733,000 | 1,400,000 | 521,000 | 5,152,000 | 6,441,000 | 5,987,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Settlement Adjustment Credit, Disputed Entitled Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,315,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) related to litigation settlement | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,419,000 | -1,345,000 | -1,419,000 | -6,947,000 | ' | ' | ' | ' | 1,345,000 | 5,602,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expense for this matter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,809,000 | ' | ' | ' | ' | ' | ' | ' | 8,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount remaining in disputed payment accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum loss exposure | ' | ' | ' | 500,000 | 18,499,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,300,000 | 40,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future MSA payments if method of calculation is changed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of states not included in settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proposed settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Years annual payments required | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Years annual payments required that are subject to inflation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | 21 |
Term of notice from state | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreed additional amount funded | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement and judgment expense | ' | ' | ' | 83,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,213,000 | ' | ' | ' | ' | ' |
Agreed additional amount funded adjusted | ' | ' | ' | $317,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingencies_Litigation_Accru
Contingencies Litigation Accrual Rollforward (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | Current Liabilities [Member] | Current Liabilities [Member] | Current Liabilities [Member] | Current Liabilities [Member] | Current Liabilities [Member] | Current Liabilities [Member] | Non-Current Liabilities [Member] | Non-Current Liabilities [Member] | Non-Current Liabilities [Member] | Non-Current Liabilities [Member] | Non-Current Liabilities [Member] | Non-Current Liabilities [Member] | ||
Master Settlement Agreement [Member] | Master Settlement Agreement [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Master Settlement Agreement [Member] | Master Settlement Agreement [Member] | Pending Litigation [Member] | Pending Litigation [Member] | |||||||
Loss Contingency Accrual [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments due under Master Settlement Agreement, Current | $62,009 | $25,348 | ' | ' | $25,348 | $32,970 | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation Accruals, Current | ' | ' | ' | ' | ' | ' | 59,310 | 1,470 | ' | ' | ' | ' | ' | ' |
Total, Current | ' | ' | 84,658 | 34,440 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments due under Master Settlement Agreement, Non-Current | 25,809 | 27,571 | ' | ' | ' | ' | ' | ' | ' | ' | 27,571 | 52,639 | ' | ' |
Litigation Accruals, Non-Current | 24,376 | 27,058 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,058 | 1,862 |
Total, Non-Current | ' | ' | ' | ' | ' | ' | ' | ' | 54,629 | 54,501 | ' | ' | ' | ' |
Expenses | ' | ' | 54,279 | 57,054 | 52,510 | 56,907 | 1,769 | 147 | 0 | 0 | 0 | 0 | 0 | 0 |
NPM Settlement Adjustment | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | -1,419 | -13,489 | -1,419 | -13,489 | 0 | 0 |
Change in MSA obligations capitalized as inventory | ' | ' | 151 | 364 | 151 | 364 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Payments | ' | ' | -76,544 | -35,654 | -16,343 | -34,077 | -60,201 | -1,577 | 0 | 0 | 0 | 0 | 0 | 0 |
Reclassification to non-current liabilities | ' | ' | 3,918 | 3,744 | 343 | 3,521 | 3,575 | 223 | -3,918 | -3,743 | -343 | -3,520 | -3,575 | -223 |
Interest on withholding | ' | ' | 83 | 18 | 0 | 0 | 83 | 18 | 893 | 99 | 0 | 0 | 893 | 99 |
Payments due under Master Settlement Agreement, Current | 62,009 | 25,348 | ' | ' | 62,009 | 59,685 | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation Accruals, Current | ' | ' | ' | ' | ' | ' | 4,536 | 281 | ' | ' | ' | ' | ' | ' |
Total, Current | ' | ' | 66,545 | 59,966 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments due under Master Settlement Agreement, Non-Current | 25,809 | 27,571 | ' | ' | ' | ' | ' | ' | ' | ' | 25,809 | 35,630 | ' | ' |
Litigation Accruals, Non-Current | 24,376 | 27,058 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,376 | 1,738 |
Total, Non-Current | ' | ' | ' | ' | ' | ' | ' | ' | $50,185 | $37,368 | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income before provision for income taxes | $19,132 | $23,528 | $25,603 | $21,512 |
Income tax expense using estimated annual effective income tax rate | 6,279 | 9,575 | 8,404 | 8,755 |
Changes in effective tax rates | -178 | 321 | 0 | 0 |
Impact of discrete items, net | 0 | 121 | 639 | 927 |
Income tax expense | $6,101 | $10,017 | $9,043 | $9,682 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (Senior Secured 11 Percent Notes Due 2015 [Member], Secured Debt [Member]) | Jun. 30, 2014 |
Senior Secured 11 Percent Notes Due 2015 [Member] | Secured Debt [Member] | ' |
Debt Instrument [Line Items] | ' |
Interest Rate | 11.00% |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 24, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Nov. 04, 2011 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $104,496 and $0 | 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $104,496 and $0 | Equity securities | Equity securities | Mutual funds invested in fixed income securities | U.S. Government securities | Corporate securities | U.S. mortgage backed securities | Commercial mortgage-backed securities | U.S. asset backed securities | Government agencies | Fixed income securities | Fixed income securities | Warrants (1) | Warrants (1) | Warrants (1) | Warrants (1) | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | ||||||
Convertible Debt [Member] | Convertible Debt [Member] | Ladenburg Thalmann Financial Services [Member] | Ladenburg Thalmann Financial Services [Member] | Ladenburg Thalmann Financial Services [Member] | Ladenburg Thalmann Financial Services [Member] | Total | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Equity securities | Equity securities | Equity securities | Equity securities | Equity securities | Equity securities | Equity securities | Equity securities | Mutual funds invested in fixed income securities | Mutual funds invested in fixed income securities | Mutual funds invested in fixed income securities | Mutual funds invested in fixed income securities | U.S. Government securities | U.S. Government securities | U.S. Government securities | U.S. Government securities | U.S. Government securities | U.S. Government securities | U.S. Government securities | U.S. Government securities | Corporate securities | Corporate securities | Corporate securities | Corporate securities | Corporate securities | Corporate securities | Corporate securities | Corporate securities | U.S. mortgage backed securities | U.S. mortgage backed securities | U.S. mortgage backed securities | U.S. mortgage backed securities | U.S. mortgage backed securities | U.S. mortgage backed securities | U.S. mortgage backed securities | U.S. mortgage backed securities | Commercial mortgage-backed securities | Commercial mortgage-backed securities | Commercial mortgage-backed securities | Commercial mortgage-backed securities | Commercial mortgage-backed securities | Commercial mortgage-backed securities | Commercial mortgage-backed securities | Commercial mortgage-backed securities | U.S. asset backed securities | U.S. asset backed securities | U.S. asset backed securities | U.S. asset backed securities | U.S. asset backed securities | U.S. asset backed securities | U.S. asset backed securities | U.S. asset backed securities | Government agencies | Government agencies | Government agencies | Government agencies | Index-linked U.S. bonds | Index-linked U.S. bonds | Index-linked U.S. bonds | Index-linked U.S. bonds | Index-linked U.S. bonds | Index-linked U.S. bonds | Index-linked U.S. bonds | Index-linked U.S. bonds | Fixed income securities | Fixed income securities | Fixed income securities | Fixed income securities | Fixed income securities | Fixed income securities | Fixed income securities | Fixed income securities | |||||||||||||||||
New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | New Valley LLC [Member] | Total | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Total | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Total | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Total | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Total | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Total | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Money market funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $335,332,000 | $130,733,000 | $335,332,000 | $130,733,000 | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Certificates of deposit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,252,000 | 2,961,000 | 0 | 0 | 3,252,000 | 2,961,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,093,000 | 5,337,000 | 5,093,000 | 5,337,000 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment securities available for sale | 237,767,000 | ' | 237,767,000 | ' | 172,534,000 | ' | ' | 123,034,000 | 118,474,000 | 60,522,000 | 11,197,000 | 30,648,000 | 214,000 | 6,645,000 | 5,061,000 | 192,000 | 54,211,000 | 54,060,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 123,034,000 | 118,474,000 | 122,262,000 | 117,737,000 | 772,000 | 737,000 | 0 | 0 | 60,522,000 | 60,522,000 | 0 | 0 | 11,197,000 | 13,990,000 | 0 | 0 | 11,197,000 | 13,990,000 | 0 | 0 | 30,648,000 | 29,923,000 | 6,744,000 | 6,497,000 | 23,904,000 | 23,426,000 | 0 | 0 | 214,000 | 495,000 | 0 | 0 | 214,000 | 495,000 | 0 | 0 | 6,645,000 | 6,822,000 | 0 | 0 | 6,645,000 | 6,822,000 | 0 | 0 | 5,061,000 | 2,081,000 | 0 | 0 | 5,061,000 | 2,081,000 | 0 | 0 | 191,000 | 0 | 191,000 | 0 | 255,000 | 749,000 | 0 | 0 | 255,000 | 749,000 | 0 | 0 | 54,211,000 | 54,060,000 | 6,744,000 | 6,497,000 | 47,467,000 | 47,563,000 | 0 | 0 |
Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,647,000 | 1,935,000 | 0 | 0 | 0 | 0 | 1,647,000 | 1,935,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 583,091,000 | 313,500,000 | 529,953,000 | 260,304,000 | 51,491,000 | 51,261,000 | 1,647,000 | 1,935,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivatives embedded within convertible debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 191,554,000 | 112,062,000 | 0 | 0 | 0 | 0 | 191,554,000 | 112,062,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,647,000 | ' | 1,758,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -111,000 | 65,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | 5.50% | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from embedded derivatives | 1,970,000 | 2,450,000 | 320,000 | 5,499,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonrecurring nonfinancial assets subject to fair value measurements | $0 | ' | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements Fair Value Inputs, Quantitative Information (Details) (Significant Unobservable Inputs (Level 3), Fair Value, Measurements, Recurring [Member], USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' |
Warrants | $1,647 | $1,935 |
Fair value of derivatives embedded within convertible debt | 191,554 | 112,062 |
Option Model [Member] | ' | ' |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' |
Warrants | 1,647 | 1,935 |
Discounted Cash Flow [Member] | ' | ' |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' |
Fair value of derivatives embedded within convertible debt | $191,554 | $112,062 |
Warrants (1) | Option Model [Member] | ' | ' |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' |
Stock price (dollars per share) | $3.15 | $3.13 |
Exercise price (dollars per share) | $1.68 | $1.68 |
Term (in years) | '2 years 4 months 24 days | '2 years 9 months 18 days |
Volatility | 45.83% | 53.82% |
Dividend rate | 0.00% | 0.00% |
Risk-free return | 0.70% | 0.72% |
Derivative Financial Instruments, Liabilities [Member] | Discounted Cash Flow [Member] | ' | ' |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' |
Stock price (dollars per share) | $20.68 | $16.37 |
Volatility | 16.00% | 18.00% |
Assumed annual stock dividend | 5.00% | 5.00% |
Assumed annual cash dividend (dollars per share) | $1.60 | $1.60 |
Convertible trading price | 107.19% | 118.70% |
Implied credit spread | 6.00% | 8.00% |
Minimum [Member] | Derivative Financial Instruments, Liabilities [Member] | Discounted Cash Flow [Member] | ' | ' |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' |
Implied credit spread | 5.50% | 7.50% |
Maximum [Member] | Derivative Financial Instruments, Liabilities [Member] | Discounted Cash Flow [Member] | ' | ' |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' |
Implied credit spread | 6.50% | 8.50% |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $406,613 | $256,226 | $753,849 | $502,395 |
Operating income (loss) | 60,308 | 44,240 | 103,030 | 87,336 |
Equity (loss) income from non-consolidated real estate businesses | -1,808 | 6,804 | -256 | 7,285 |
Depreciation and amortization | 5,462 | 2,637 | 12,554 | 5,233 |
Capital expenditures | ' | ' | 10,144 | 5,995 |
Gain (loss) related to litigation settlement | ' | ' | 1,500 | ' |
Tobacco [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 250,556 | 249,120 | 483,948 | 489,522 |
Operating income (loss) | 51,506 | 48,294 | 94,402 | 95,454 |
Equity (loss) income from non-consolidated real estate businesses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 2,588 | 2,368 | 5,081 | 4,753 |
Capital expenditures | ' | ' | 6,563 | 3,319 |
Real Estate [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 153,488 | 7,106 | 261,532 | 12,873 |
Operating income (loss) | 15,901 | -407 | 20,645 | -321 |
Equity (loss) income from non-consolidated real estate businesses | -1,808 | 6,804 | -256 | 7,285 |
Depreciation and amortization | 2,622 | 152 | 6,969 | 280 |
Capital expenditures | ' | ' | 3,570 | 429 |
Corporate and Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 2,569 | 0 | 8,369 | 0 |
Operating income (loss) | -7,099 | -3,647 | -12,017 | -7,797 |
Equity (loss) income from non-consolidated real estate businesses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 252 | 117 | 504 | 200 |
Capital expenditures | ' | ' | 11 | 2,247 |
NPM Adjustment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Gain (loss) related to litigation settlement | ($1,419) | ($1,345) | ($1,419) | ($6,947) |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information (Narrative) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | 7.75% Senior Secured Notes Due 2021 [Member] | Parent Company [Member] | |
Secured Debt [Member] | 7.75% Senior Secured Notes Due 2021 [Member] | ||
Secured Debt [Member] | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Subsidiary guarantors, percentage ownership | 100.00% | ' | ' |
Interest Rate | ' | 7.75% | ' |
Covenant, Indenture Threshold for Earnings for Payment of Dividends | ' | ' | $75,000 |
Covenant, Leverage Ratio Requirement | ' | ' | 3 |
Covenant, Secured Leverage Ratio Requirement | ' | ' | 1.5 |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information Balance Sheets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $506,423 | $234,466 | $281,713 | $405,855 |
Investment securities available for sale | 237,767 | 172,534 | ' | ' |
Accounts receivable - trade, net | 15,753 | 12,159 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Inventories | 108,257 | 93,496 | ' | ' |
Deferred income taxes | 28,264 | 50,479 | ' | ' |
Income tax receivable, net | 12,769 | 0 | ' | ' |
Restricted assets | 2,555 | 1,785 | ' | ' |
Other current assets | 28,532 | 23,392 | ' | ' |
Total current assets | 940,320 | 588,311 | ' | ' |
Property, plant and equipment, net | 80,332 | 79,258 | ' | ' |
Real estate held for sale, net | 10,669 | 20,911 | ' | ' |
Long-term investments accounted for at cost | 27,239 | 20,788 | ' | ' |
Long-term investments accounted for under the equity method | 17,842 | 8,595 | ' | ' |
Investments in non-consolidated real estate businesses | 133,629 | 128,202 | ' | ' |
Investments in consolidated subsidiaries | 0 | 0 | ' | ' |
Restricted assets | 11,581 | 11,981 | ' | ' |
Deferred income taxes | 64,712 | 51,474 | ' | ' |
Goodwill and other intangible assets, net | 269,247 | 271,111 | ' | ' |
Prepaid pension costs | 27,663 | 26,080 | ' | ' |
Other assets | 59,428 | 53,553 | ' | ' |
Total assets | 1,642,662 | 1,260,264 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of notes payable and long-term debt | 141,808 | 151,577 | ' | ' |
Current portion of fair value of derivatives embedded within convertible debt | 7,768 | 19,128 | ' | ' |
Current portion of employee benefits | 939 | 939 | ' | ' |
Accounts payable | 10,180 | 10,260 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Accrued promotional expenses | 20,040 | 18,655 | ' | ' |
Income taxes payable, net | 3,156 | 6,423 | ' | ' |
Accrued excise and payroll taxes payable, net | 16,809 | 11,621 | ' | ' |
Litigation accruals and current payments due under the Master Settlement Agreement | 66,545 | 84,658 | ' | ' |
Deferred income taxes | 51,433 | 45,734 | ' | ' |
Accrued interest | 29,926 | 21,968 | ' | ' |
Other current liabilities | 31,708 | 34,147 | ' | ' |
Total current liabilities | 380,312 | 405,110 | ' | ' |
Notes payable, long-term debt and other obligations, less current portion | 853,669 | 540,766 | ' | ' |
Fair value of derivatives embedded within convertible debt | 183,786 | 92,934 | ' | ' |
Non-current employee benefits | 48,564 | 47,917 | ' | ' |
Deferred income taxes | 153,481 | 137,650 | ' | ' |
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 53,963 | 57,496 | ' | ' |
Total liabilities | 1,673,775 | 1,281,873 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Total Vector Group Ltd. stockholders' deficiency | -107,520 | -95,036 | ' | ' |
Non-controlling interest | 76,407 | 73,427 | ' | ' |
Total stockholders' deficiency | -31,113 | -21,609 | ' | ' |
Total liabilities and stockholders' deficiency | 1,642,662 | 1,260,264 | ' | ' |
Parent/Issuer [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 398,119 | 151,342 | 273,219 | 401,344 |
Investment securities available for sale | 178,626 | 114,886 | ' | ' |
Accounts receivable - trade, net | 0 | 0 | ' | ' |
Intercompany receivables | 516 | 509 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Deferred income taxes | 23,164 | 45,578 | ' | ' |
Income tax receivable, net | 21,428 | 0 | ' | ' |
Restricted assets | 0 | 0 | ' | ' |
Other current assets | 724 | 513 | ' | ' |
Total current assets | 622,577 | 312,828 | ' | ' |
Property, plant and equipment, net | 3,148 | 3,641 | ' | ' |
Real estate held for sale, net | 0 | 0 | ' | ' |
Long-term investments accounted for at cost | 26,541 | 20,041 | ' | ' |
Long-term investments accounted for under the equity method | 17,842 | 8,595 | ' | ' |
Investments in non-consolidated real estate businesses | 0 | 0 | ' | ' |
Investments in consolidated subsidiaries | 447,514 | 410,442 | ' | ' |
Restricted assets | 1,596 | 1,895 | ' | ' |
Deferred income taxes | 52,448 | 35,000 | ' | ' |
Goodwill and other intangible assets, net | 0 | 0 | ' | ' |
Prepaid pension costs | 0 | 0 | ' | ' |
Other assets | 47,780 | 38,374 | ' | ' |
Total assets | 1,219,446 | 830,816 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of notes payable and long-term debt | 108,566 | 112,275 | ' | ' |
Current portion of fair value of derivatives embedded within convertible debt | 7,768 | 19,128 | ' | ' |
Current portion of employee benefits | 0 | 0 | ' | ' |
Accounts payable | 932 | 1,509 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Accrued promotional expenses | 0 | 0 | ' | ' |
Income taxes payable, net | 0 | 16,870 | ' | ' |
Accrued excise and payroll taxes payable, net | 0 | 0 | ' | ' |
Litigation accruals and current payments due under the Master Settlement Agreement | 0 | 0 | ' | ' |
Deferred income taxes | 37,862 | 32,309 | ' | ' |
Accrued interest | 29,926 | 21,968 | ' | ' |
Other current liabilities | 3,671 | 6,103 | ' | ' |
Total current liabilities | 188,725 | 210,162 | ' | ' |
Notes payable, long-term debt and other obligations, less current portion | 842,458 | 524,182 | ' | ' |
Fair value of derivatives embedded within convertible debt | 183,786 | 92,934 | ' | ' |
Non-current employee benefits | 32,195 | 31,462 | ' | ' |
Deferred income taxes | 78,506 | 65,759 | ' | ' |
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 1,296 | 1,353 | ' | ' |
Total liabilities | 1,326,966 | 925,852 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Total Vector Group Ltd. stockholders' deficiency | -107,520 | -95,036 | ' | ' |
Non-controlling interest | 0 | 0 | ' | ' |
Total stockholders' deficiency | -107,520 | -95,036 | ' | ' |
Total liabilities and stockholders' deficiency | 1,219,446 | 830,816 | ' | ' |
Subsidiary Guarantors [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 15,086 | 11,812 | 7,779 | 3,776 |
Investment securities available for sale | 59,141 | 57,648 | ' | ' |
Accounts receivable - trade, net | 12,282 | 10,154 | ' | ' |
Intercompany receivables | 20 | 0 | ' | ' |
Inventories | 108,257 | 93,496 | ' | ' |
Deferred income taxes | 5,100 | 4,901 | ' | ' |
Income tax receivable, net | 0 | 10,447 | ' | ' |
Restricted assets | 1,141 | 1,060 | ' | ' |
Other current assets | 7,988 | 12,579 | ' | ' |
Total current assets | 209,015 | 202,097 | ' | ' |
Property, plant and equipment, net | 56,644 | 55,093 | ' | ' |
Real estate held for sale, net | 0 | 0 | ' | ' |
Long-term investments accounted for at cost | 0 | 0 | ' | ' |
Long-term investments accounted for under the equity method | 0 | 0 | ' | ' |
Investments in non-consolidated real estate businesses | 0 | 0 | ' | ' |
Investments in consolidated subsidiaries | 0 | 0 | ' | ' |
Restricted assets | 9,985 | 10,086 | ' | ' |
Deferred income taxes | 8,488 | 12,766 | ' | ' |
Goodwill and other intangible assets, net | 107,511 | 107,511 | ' | ' |
Prepaid pension costs | 27,663 | 26,080 | ' | ' |
Other assets | 10,494 | 10,126 | ' | ' |
Total assets | 429,800 | 423,759 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of notes payable and long-term debt | 33,029 | 39,013 | ' | ' |
Current portion of fair value of derivatives embedded within convertible debt | 0 | 0 | ' | ' |
Current portion of employee benefits | 939 | 939 | ' | ' |
Accounts payable | 4,721 | 4,136 | ' | ' |
Intercompany payables | 0 | 39 | ' | ' |
Accrued promotional expenses | 20,040 | 18,655 | ' | ' |
Income taxes payable, net | 11,815 | 0 | ' | ' |
Accrued excise and payroll taxes payable, net | 16,809 | 11,621 | ' | ' |
Litigation accruals and current payments due under the Master Settlement Agreement | 66,545 | 84,658 | ' | ' |
Deferred income taxes | 13,571 | 13,425 | ' | ' |
Accrued interest | 0 | 0 | ' | ' |
Other current liabilities | 8,699 | 10,495 | ' | ' |
Total current liabilities | 176,168 | 182,981 | ' | ' |
Notes payable, long-term debt and other obligations, less current portion | 10,882 | 12,573 | ' | ' |
Fair value of derivatives embedded within convertible debt | 0 | 0 | ' | ' |
Non-current employee benefits | 16,369 | 16,455 | ' | ' |
Deferred income taxes | 39,112 | 37,602 | ' | ' |
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 50,597 | 54,924 | ' | ' |
Total liabilities | 293,128 | 304,535 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Total Vector Group Ltd. stockholders' deficiency | 136,672 | 119,224 | ' | ' |
Non-controlling interest | 0 | 0 | ' | ' |
Total stockholders' deficiency | 136,672 | 119,224 | ' | ' |
Total liabilities and stockholders' deficiency | 429,800 | 423,759 | ' | ' |
Subsidiary Non-Guarantors [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 93,218 | 71,312 | 715 | 735 |
Investment securities available for sale | 0 | 0 | ' | ' |
Accounts receivable - trade, net | 3,471 | 2,005 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Income tax receivable, net | 0 | 0 | ' | ' |
Restricted assets | 1,414 | 725 | ' | ' |
Other current assets | 19,820 | 10,300 | ' | ' |
Total current assets | 117,923 | 84,342 | ' | ' |
Property, plant and equipment, net | 20,540 | 20,524 | ' | ' |
Real estate held for sale, net | 10,669 | 20,911 | ' | ' |
Long-term investments accounted for at cost | 698 | 747 | ' | ' |
Long-term investments accounted for under the equity method | 0 | 0 | ' | ' |
Investments in non-consolidated real estate businesses | 133,629 | 128,202 | ' | ' |
Investments in consolidated subsidiaries | 0 | 0 | ' | ' |
Restricted assets | 0 | 0 | ' | ' |
Deferred income taxes | 3,776 | 3,708 | ' | ' |
Goodwill and other intangible assets, net | 161,736 | 163,600 | ' | ' |
Prepaid pension costs | 0 | 0 | ' | ' |
Other assets | 1,154 | 5,053 | ' | ' |
Total assets | 450,125 | 427,087 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of notes payable and long-term debt | 213 | 289 | ' | ' |
Current portion of fair value of derivatives embedded within convertible debt | 0 | 0 | ' | ' |
Current portion of employee benefits | 0 | 0 | ' | ' |
Accounts payable | 4,527 | 4,615 | ' | ' |
Intercompany payables | 536 | 470 | ' | ' |
Accrued promotional expenses | 0 | 0 | ' | ' |
Income taxes payable, net | 0 | 0 | ' | ' |
Accrued excise and payroll taxes payable, net | 0 | 0 | ' | ' |
Litigation accruals and current payments due under the Master Settlement Agreement | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Accrued interest | 0 | 0 | ' | ' |
Other current liabilities | 19,338 | 17,549 | ' | ' |
Total current liabilities | 24,614 | 22,923 | ' | ' |
Notes payable, long-term debt and other obligations, less current portion | 329 | 4,011 | ' | ' |
Fair value of derivatives embedded within convertible debt | 0 | 0 | ' | ' |
Non-current employee benefits | 0 | 0 | ' | ' |
Deferred income taxes | 35,863 | 34,289 | ' | ' |
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 2,070 | 1,219 | ' | ' |
Total liabilities | 62,876 | 62,442 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Total Vector Group Ltd. stockholders' deficiency | 310,842 | 291,218 | ' | ' |
Non-controlling interest | 76,407 | 73,427 | ' | ' |
Total stockholders' deficiency | 387,249 | 364,645 | ' | ' |
Total liabilities and stockholders' deficiency | 450,125 | 427,087 | ' | ' |
Consolidating Adjustments [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Investment securities available for sale | 0 | 0 | ' | ' |
Accounts receivable - trade, net | 0 | 0 | ' | ' |
Intercompany receivables | -536 | -509 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Income tax receivable, net | -8,659 | -10,447 | ' | ' |
Restricted assets | 0 | 0 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Total current assets | -9,195 | -10,956 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Real estate held for sale, net | 0 | 0 | ' | ' |
Long-term investments accounted for at cost | 0 | 0 | ' | ' |
Long-term investments accounted for under the equity method | 0 | 0 | ' | ' |
Investments in non-consolidated real estate businesses | 0 | 0 | ' | ' |
Investments in consolidated subsidiaries | -447,514 | -410,442 | ' | ' |
Restricted assets | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Goodwill and other intangible assets, net | 0 | 0 | ' | ' |
Prepaid pension costs | 0 | 0 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | -456,709 | -421,398 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of notes payable and long-term debt | 0 | 0 | ' | ' |
Current portion of fair value of derivatives embedded within convertible debt | 0 | 0 | ' | ' |
Current portion of employee benefits | 0 | 0 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Intercompany payables | -536 | -509 | ' | ' |
Accrued promotional expenses | 0 | 0 | ' | ' |
Income taxes payable, net | -8,659 | -10,447 | ' | ' |
Accrued excise and payroll taxes payable, net | 0 | 0 | ' | ' |
Litigation accruals and current payments due under the Master Settlement Agreement | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Accrued interest | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Total current liabilities | -9,195 | -10,956 | ' | ' |
Notes payable, long-term debt and other obligations, less current portion | 0 | 0 | ' | ' |
Fair value of derivatives embedded within convertible debt | 0 | 0 | ' | ' |
Non-current employee benefits | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 0 | 0 | ' | ' |
Total liabilities | -9,195 | -10,956 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Total Vector Group Ltd. stockholders' deficiency | -447,514 | -410,442 | ' | ' |
Non-controlling interest | 0 | 0 | ' | ' |
Total stockholders' deficiency | -447,514 | -410,442 | ' | ' |
Total liabilities and stockholders' deficiency | ($456,709) | ($421,398) | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information Statements of Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenues | $406,613 | $256,226 | $753,849 | $502,395 |
Expenses: | ' | ' | ' | ' |
Cost of sales | 279,282 | 186,445 | 518,319 | 363,622 |
Operating, selling, administrative and general expenses | 67,023 | 25,541 | 132,500 | 51,437 |
Management fee expense | 0 | 0 | 0 | 0 |
Operating income | 60,308 | 44,240 | 103,030 | 87,336 |
Other income (expenses): | ' | ' | ' | ' |
Interest expense | -44,183 | -32,086 | -79,636 | -65,462 |
Change in fair value of derivatives embedded within convertible debt | 1,970 | 2,450 | 320 | 5,499 |
Acceleration of interest expense related to debt conversion | -439 | 0 | -4,118 | 0 |
Loss on extinguishment of debt | 0 | 0 | 0 | -21,458 |
Equity (loss) income from non-consolidated real estate businesses | -1,808 | 6,804 | -256 | 7,285 |
Equity (loss) income on long-term investments | -273 | 846 | 633 | 823 |
(Loss) gain on sale of investment securities available for sale | -18 | -197 | -71 | 5,209 |
Equity income in consolidated subsidiaries | 0 | 0 | 0 | 0 |
Management fee income | 0 | 0 | 0 | 0 |
Other, net | 3,575 | 1,471 | 5,701 | 2,280 |
Income before provision for income taxes | 19,132 | 23,528 | 25,603 | 21,512 |
Income tax benefit (expense) | -6,101 | -10,017 | -9,043 | -9,682 |
Net income | 13,031 | 13,511 | 16,560 | 11,830 |
Net income attributed to non-controlling interest | -5,106 | 0 | -6,055 | 0 |
Net income attributed to Vector Group Ltd. | 7,925 | 13,511 | 10,505 | 11,830 |
Comprehensive income attributed to non-controlling interest | -5,106 | 0 | -6,055 | 0 |
Comprehensive income | 14,542 | 14,633 | 23,379 | 18,866 |
Comprehensive income attributed to Vector Group Ltd. | 9,436 | 14,633 | 17,324 | 18,866 |
Parent/Issuer [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 |
Expenses: | ' | ' | ' | ' |
Cost of sales | 0 | 0 | 0 | 0 |
Operating, selling, administrative and general expenses | 4,933 | 5,506 | 11,216 | 11,382 |
Management fee expense | 0 | 0 | 0 | 0 |
Operating income | -4,933 | -5,506 | -11,216 | -11,382 |
Other income (expenses): | ' | ' | ' | ' |
Interest expense | -43,190 | -31,723 | -77,972 | -64,683 |
Change in fair value of derivatives embedded within convertible debt | 1,970 | 2,450 | 320 | 5,499 |
Acceleration of interest expense related to debt conversion | -439 | ' | -4,118 | ' |
Loss on extinguishment of debt | ' | ' | ' | -21,458 |
Equity (loss) income from non-consolidated real estate businesses | 0 | 0 | 0 | 0 |
Equity (loss) income on long-term investments | -273 | 846 | 633 | 823 |
(Loss) gain on sale of investment securities available for sale | -18 | -197 | -71 | -197 |
Equity income in consolidated subsidiaries | 32,408 | 32,277 | 60,126 | 63,565 |
Management fee income | 2,468 | 2,377 | 4,935 | 4,754 |
Other, net | 1,068 | 1,245 | 1,766 | 1,947 |
Income before provision for income taxes | -10,939 | 1,769 | -25,597 | -21,132 |
Income tax benefit (expense) | 18,864 | 11,742 | 36,102 | 32,962 |
Net income | 7,925 | 13,511 | 10,505 | 11,830 |
Net income attributed to non-controlling interest | 0 | ' | 0 | ' |
Net income attributed to Vector Group Ltd. | 7,925 | ' | 10,505 | ' |
Comprehensive income attributed to non-controlling interest | 0 | ' | 0 | ' |
Comprehensive income | ' | 14,633 | ' | 18,866 |
Comprehensive income attributed to Vector Group Ltd. | 9,436 | ' | 17,324 | ' |
Subsidiary Guarantors [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenues | 253,125 | 249,120 | 492,317 | 489,522 |
Expenses: | ' | ' | ' | ' |
Cost of sales | 181,517 | 180,430 | 353,230 | 353,386 |
Operating, selling, administrative and general expenses | 22,190 | 18,455 | 45,375 | 36,949 |
Management fee expense | 2,468 | 2,377 | 4,935 | 4,754 |
Operating income | 46,950 | 47,858 | 88,777 | 94,433 |
Other income (expenses): | ' | ' | ' | ' |
Interest expense | -1,284 | -360 | -2,239 | -772 |
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | 0 |
Acceleration of interest expense related to debt conversion | 0 | ' | 0 | ' |
Loss on extinguishment of debt | ' | ' | ' | 0 |
Equity (loss) income from non-consolidated real estate businesses | 0 | 0 | 0 | 0 |
Equity (loss) income on long-term investments | 0 | 0 | 0 | 0 |
(Loss) gain on sale of investment securities available for sale | 0 | 0 | 0 | 5,406 |
Equity income in consolidated subsidiaries | 0 | 0 | 0 | 0 |
Management fee income | 0 | 0 | 0 | 0 |
Other, net | 224 | 150 | 484 | 205 |
Income before provision for income taxes | 45,890 | 47,648 | 87,022 | 99,272 |
Income tax benefit (expense) | -19,716 | -19,134 | -36,355 | -39,791 |
Net income | 26,174 | 28,514 | 50,667 | 59,481 |
Net income attributed to non-controlling interest | 0 | ' | 0 | ' |
Net income attributed to Vector Group Ltd. | 26,174 | ' | 50,667 | ' |
Comprehensive income attributed to non-controlling interest | 0 | ' | 0 | ' |
Comprehensive income | ' | 27,179 | ' | 61,624 |
Comprehensive income attributed to Vector Group Ltd. | 25,464 | ' | 50,659 | ' |
Subsidiary Non-Guarantors [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenues | 153,488 | 7,106 | 261,532 | 12,873 |
Expenses: | ' | ' | ' | ' |
Cost of sales | 97,765 | 6,015 | 165,089 | 10,236 |
Operating, selling, administrative and general expenses | 39,900 | 1,580 | 75,909 | 3,106 |
Management fee expense | 0 | 0 | 0 | 0 |
Operating income | 15,823 | -489 | 20,534 | -469 |
Other income (expenses): | ' | ' | ' | ' |
Interest expense | -3 | -3 | -37 | -7 |
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | 0 |
Acceleration of interest expense related to debt conversion | 0 | ' | 0 | ' |
Loss on extinguishment of debt | ' | ' | ' | 0 |
Equity (loss) income from non-consolidated real estate businesses | -1,808 | 6,804 | -256 | 7,285 |
Equity (loss) income on long-term investments | 0 | 0 | 0 | 0 |
(Loss) gain on sale of investment securities available for sale | 0 | 0 | 0 | 0 |
Equity income in consolidated subsidiaries | 0 | 0 | 0 | 0 |
Management fee income | 0 | 0 | 0 | 0 |
Other, net | 2,577 | 76 | 4,063 | 128 |
Income before provision for income taxes | 16,589 | 6,388 | 24,304 | 6,937 |
Income tax benefit (expense) | -5,249 | -2,625 | -8,790 | -2,853 |
Net income | 11,340 | 3,763 | 15,514 | 4,084 |
Net income attributed to non-controlling interest | -5,106 | ' | -6,055 | ' |
Net income attributed to Vector Group Ltd. | 6,234 | ' | 9,459 | ' |
Comprehensive income attributed to non-controlling interest | -5,106 | ' | -6,055 | ' |
Comprehensive income | ' | 3,763 | ' | 4,084 |
Comprehensive income attributed to Vector Group Ltd. | 6,234 | ' | 9,459 | ' |
Consolidating Adjustments [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 |
Expenses: | ' | ' | ' | ' |
Cost of sales | 0 | 0 | 0 | 0 |
Operating, selling, administrative and general expenses | 0 | 0 | 0 | 0 |
Management fee expense | -2,468 | -2,377 | -4,935 | -4,754 |
Operating income | 2,468 | 2,377 | 4,935 | 4,754 |
Other income (expenses): | ' | ' | ' | ' |
Interest expense | 294 | 0 | 612 | 0 |
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | 0 |
Acceleration of interest expense related to debt conversion | 0 | ' | 0 | ' |
Loss on extinguishment of debt | ' | ' | ' | 0 |
Equity (loss) income from non-consolidated real estate businesses | 0 | 0 | 0 | 0 |
Equity (loss) income on long-term investments | 0 | 0 | 0 | 0 |
(Loss) gain on sale of investment securities available for sale | 0 | 0 | 0 | 0 |
Equity income in consolidated subsidiaries | -32,408 | -32,277 | -60,126 | -63,565 |
Management fee income | -2,468 | -2,377 | -4,935 | -4,754 |
Other, net | -294 | 0 | -612 | 0 |
Income before provision for income taxes | -32,408 | -32,277 | -60,126 | -63,565 |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Net income | -32,408 | -32,277 | -60,126 | -63,565 |
Net income attributed to non-controlling interest | 0 | ' | 0 | ' |
Net income attributed to Vector Group Ltd. | -32,408 | ' | -60,126 | ' |
Comprehensive income attributed to non-controlling interest | 0 | ' | 0 | ' |
Comprehensive income | ' | -30,942 | ' | -65,708 |
Comprehensive income attributed to Vector Group Ltd. | ($31,698) | ' | ($60,118) | ' |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information Statements of Cash Flows (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by operating activities | $53,995 | $5,190 |
Cash flows from investing activities: | ' | ' |
Sale of investment securities | 49,296 | 43,115 |
Purchase of investment securities | -110,419 | -90,368 |
Proceeds from sale or liquidation of long-term investments | 549 | 75 |
Purchase of long-term investments | -7,000 | -5,000 |
Investments in non-consolidated real estate businesses | -12,534 | -19,048 |
Purchase of subsidiaries | 250 | ' |
Investments in consolidated real estate businesses | 0 | -7,657 |
Distributions from non-consolidated real estate businesses | 3,539 | 0 |
Increase in cash surrender value of life insurance policies | -395 | -303 |
Decrease (increase) in restricted assets | -371 | -1,268 |
Repayments of notes receivable | 933 | 8,433 |
Issuance of notes receivable | -250 | 0 |
Investments in subsidiaries | 0 | 0 |
Proceeds from sale of fixed assets | 4 | 13 |
Capital expenditures | -10,144 | -5,995 |
Net cash used in investing activities | -87,042 | -78,003 |
Cash flows from financing activities: | ' | ' |
Proceeds from debt issuance | 413,916 | 453,080 |
Deferred financing costs | -12,360 | -11,663 |
Repayments of debt | -8,051 | -418,833 |
Borrowings under revolver | 429,188 | 474,493 |
Repayments on revolver | -437,736 | -476,888 |
Capital contributions received | 0 | 0 |
Intercompany dividends paid | 0 | 0 |
Dividends and distributions on common stock | -80,963 | -71,518 |
Distributions to non-controlling interest | -3,075 | ' |
Proceeds from exercise of Vector options | 3,405 | 0 |
Tax benefit of options exercised | 680 | 0 |
Net cash provided by (used in) financing activities | 305,004 | -51,329 |
Net increase (decrease) in cash and cash equivalents | 271,957 | -124,142 |
Cash and cash equivalents, beginning of period | 234,466 | 405,855 |
Cash and cash equivalents, end of period | 506,423 | 281,713 |
Parent/Issuer [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by operating activities | 17,374 | 5,204 |
Cash flows from investing activities: | ' | ' |
Sale of investment securities | 49,296 | 36,533 |
Purchase of investment securities | -108,859 | -79,368 |
Proceeds from sale or liquidation of long-term investments | 500 | 0 |
Purchase of long-term investments | -7,000 | -5,000 |
Investments in non-consolidated real estate businesses | 0 | 0 |
Purchase of subsidiaries | 0 | ' |
Investments in consolidated real estate businesses | ' | 0 |
Distributions from non-consolidated real estate businesses | 0 | ' |
Increase in cash surrender value of life insurance policies | 0 | 79 |
Decrease (increase) in restricted assets | 299 | 6 |
Repayments of notes receivable | 35,933 | 8,433 |
Issuance of notes receivable | -35,000 | ' |
Investments in subsidiaries | -25,267 | -43,584 |
Proceeds from sale of fixed assets | 0 | 0 |
Capital expenditures | -11 | -2,247 |
Net cash used in investing activities | -90,109 | -85,148 |
Cash flows from financing activities: | ' | ' |
Proceeds from debt issuance | 408,750 | 450,000 |
Deferred financing costs | -12,360 | -11,663 |
Repayments of debt | 0 | -415,000 |
Borrowings under revolver | 0 | 0 |
Repayments on revolver | 0 | 0 |
Capital contributions received | 0 | 0 |
Intercompany dividends paid | 0 | 0 |
Dividends and distributions on common stock | -80,963 | -71,518 |
Distributions to non-controlling interest | 0 | ' |
Proceeds from exercise of Vector options | 3,405 | ' |
Tax benefit of options exercised | 680 | ' |
Net cash provided by (used in) financing activities | 319,512 | -48,181 |
Net increase (decrease) in cash and cash equivalents | 246,777 | -128,125 |
Cash and cash equivalents, beginning of period | 151,342 | 401,344 |
Cash and cash equivalents, end of period | 398,119 | 273,219 |
Subsidiary Guarantors [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by operating activities | 46,294 | 57,823 |
Cash flows from investing activities: | ' | ' |
Sale of investment securities | 0 | 6,582 |
Purchase of investment securities | -1,560 | -11,000 |
Proceeds from sale or liquidation of long-term investments | 0 | 0 |
Purchase of long-term investments | 0 | 0 |
Investments in non-consolidated real estate businesses | 0 | 0 |
Purchase of subsidiaries | 0 | ' |
Investments in consolidated real estate businesses | ' | 0 |
Distributions from non-consolidated real estate businesses | 0 | ' |
Increase in cash surrender value of life insurance policies | -395 | -382 |
Decrease (increase) in restricted assets | 19 | -1,274 |
Repayments of notes receivable | 0 | 0 |
Issuance of notes receivable | 0 | ' |
Investments in subsidiaries | 0 | 0 |
Proceeds from sale of fixed assets | 4 | 13 |
Capital expenditures | -6,563 | -3,319 |
Net cash used in investing activities | -8,495 | -9,380 |
Cash flows from financing activities: | ' | ' |
Proceeds from debt issuance | 40,166 | 0 |
Deferred financing costs | 0 | 0 |
Repayments of debt | -39,293 | -3,763 |
Borrowings under revolver | 429,188 | 474,493 |
Repayments on revolver | -437,736 | -476,888 |
Capital contributions received | 3,150 | 12,300 |
Intercompany dividends paid | -30,000 | -50,582 |
Dividends and distributions on common stock | 0 | 0 |
Distributions to non-controlling interest | 0 | ' |
Proceeds from exercise of Vector options | 0 | ' |
Tax benefit of options exercised | 0 | ' |
Net cash provided by (used in) financing activities | -34,525 | -44,440 |
Net increase (decrease) in cash and cash equivalents | 3,274 | 4,003 |
Cash and cash equivalents, beginning of period | 11,812 | 3,776 |
Cash and cash equivalents, end of period | 15,086 | 7,779 |
Subsidiary Non-Guarantors [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by operating activities | 32,279 | 2,187 |
Cash flows from investing activities: | ' | ' |
Sale of investment securities | 0 | 0 |
Purchase of investment securities | 0 | 0 |
Proceeds from sale or liquidation of long-term investments | 49 | 75 |
Purchase of long-term investments | 0 | 0 |
Investments in non-consolidated real estate businesses | -12,534 | -19,048 |
Purchase of subsidiaries | 250 | ' |
Investments in consolidated real estate businesses | ' | -7,657 |
Distributions from non-consolidated real estate businesses | 3,539 | ' |
Increase in cash surrender value of life insurance policies | 0 | 0 |
Decrease (increase) in restricted assets | -689 | 0 |
Repayments of notes receivable | 0 | 0 |
Issuance of notes receivable | -250 | ' |
Investments in subsidiaries | 0 | 0 |
Proceeds from sale of fixed assets | 0 | 0 |
Capital expenditures | -3,570 | -429 |
Net cash used in investing activities | -13,705 | -27,059 |
Cash flows from financing activities: | ' | ' |
Proceeds from debt issuance | 0 | 3,080 |
Deferred financing costs | 0 | 0 |
Repayments of debt | -3,758 | -70 |
Borrowings under revolver | 0 | 0 |
Repayments on revolver | 0 | 0 |
Capital contributions received | 22,117 | 31,284 |
Intercompany dividends paid | -11,952 | -9,442 |
Dividends and distributions on common stock | 0 | 0 |
Distributions to non-controlling interest | -3,075 | ' |
Proceeds from exercise of Vector options | 0 | ' |
Tax benefit of options exercised | 0 | ' |
Net cash provided by (used in) financing activities | 3,332 | 24,852 |
Net increase (decrease) in cash and cash equivalents | 21,906 | -20 |
Cash and cash equivalents, beginning of period | 71,312 | 735 |
Cash and cash equivalents, end of period | 93,218 | 715 |
Consolidating Adjustments [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by operating activities | -41,952 | -60,024 |
Cash flows from investing activities: | ' | ' |
Sale of investment securities | 0 | 0 |
Purchase of investment securities | 0 | 0 |
Proceeds from sale or liquidation of long-term investments | 0 | 0 |
Purchase of long-term investments | 0 | 0 |
Investments in non-consolidated real estate businesses | 0 | 0 |
Purchase of subsidiaries | 0 | ' |
Investments in consolidated real estate businesses | ' | 0 |
Distributions from non-consolidated real estate businesses | 0 | ' |
Increase in cash surrender value of life insurance policies | 0 | 0 |
Decrease (increase) in restricted assets | 0 | 0 |
Repayments of notes receivable | -35,000 | 0 |
Issuance of notes receivable | 35,000 | ' |
Investments in subsidiaries | 25,267 | 43,584 |
Proceeds from sale of fixed assets | 0 | 0 |
Capital expenditures | 0 | 0 |
Net cash used in investing activities | 25,267 | 43,584 |
Cash flows from financing activities: | ' | ' |
Proceeds from debt issuance | -35,000 | 0 |
Deferred financing costs | 0 | 0 |
Repayments of debt | 35,000 | 0 |
Borrowings under revolver | 0 | 0 |
Repayments on revolver | 0 | 0 |
Capital contributions received | -25,267 | -43,584 |
Intercompany dividends paid | 41,952 | 60,024 |
Dividends and distributions on common stock | 0 | 0 |
Distributions to non-controlling interest | 0 | ' |
Proceeds from exercise of Vector options | 0 | ' |
Tax benefit of options exercised | 0 | ' |
Net cash provided by (used in) financing activities | 16,685 | 16,440 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 |