Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | VECTOR GROUP LTD | ||
Entity Central Index Key | 59,440 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 140,914,642 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,914 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 584,581 | $ 301,353 |
Investment securities at fair value | 131,569 | 150,489 |
Accounts receivable - trade, net | 34,246 | 29,481 |
Inventories | 90,997 | 89,790 |
Income taxes receivable, net | 0 | 11,217 |
Restricted assets | 4,477 | 10,258 |
Other current assets | 26,351 | 21,121 |
Total current assets | 872,221 | 613,709 |
Property, plant and equipment, net | 86,736 | 85,516 |
Investments in real estate, net | 26,220 | 23,952 |
Long-term investments (of which $54,628 and $0 were carried at fair value) | 66,259 | 81,291 |
Investments in real estate ventures | 141,105 | 188,131 |
Restricted assets | 6,306 | 3,488 |
Goodwill and other intangible assets, net | 266,611 | 267,708 |
Prepaid pension costs | 23,869 | 27,697 |
Other assets | 60,177 | 36,786 |
Total assets | 1,549,504 | 1,328,278 |
Current liabilities: | ||
Current portion of notes payable and long-term debt | 256,134 | 33,820 |
Current portion of fair value of derivatives embedded within convertible debt | 6,635 | 0 |
Current payments due under the Master Settlement Agreement | 36,561 | 12,384 |
Current portion of employee benefits | 875 | 952 |
Income taxes payable, net | 5,252 | 100 |
Litigation accruals | 310 | 260 |
Other current liabilities | 179,153 | 157,123 |
Total current liabilities | 484,920 | 204,639 |
Notes payable, long-term debt and other obligations, less current portion | 1,386,697 | 1,194,244 |
Fair value of derivatives embedded within convertible debt | 24,789 | 76,413 |
Non-current employee benefits | 61,288 | 62,242 |
Deferred income taxes, net | 37,411 | 58,801 |
Payments due under the Master Settlement Agreement | 16,383 | 21,479 |
Litigation accruals | 21,794 | 19,840 |
Other liabilities | 63,588 | 22,380 |
Total liabilities | 2,096,870 | 1,660,038 |
Commitments and contingencies (Notes 11 and 15) | ||
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 shares authorized,140,914,642 and 134,365,424 shares issued and outstanding | 14,092 | 13,437 |
Accumulated deficit | (542,169) | (414,785) |
Accumulated other comprehensive loss | (19,982) | (12,571) |
Total Vector Group Ltd. stockholders' deficiency | (548,059) | (413,919) |
Non-controlling interest | 693 | 82,159 |
Total stockholders' deficiency | (547,366) | (331,760) |
Total liabilities and stockholders' deficiency | $ 1,549,504 | $ 1,328,278 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Long-term investments, fair value | $ 54,628 | $ 0 |
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 dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 140,914,642 | 134,365,424 |
Common stock, shares outstanding (in shares) | 140,914,642 | 134,365,424 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues: | ||||
Total revenues | $ 1,870,262 | $ 1,807,476 | $ 1,690,949 | |
Cost of sales: | ||||
Total cost of sales | 1,292,484 | 1,228,046 | 1,097,344 | |
Operating, selling, administrative and general expenses | 355,513 | 337,191 | 339,059 | |
Litigation settlement and judgment expense (income) | (1,784) | 6,591 | 20,000 | |
Restructuring charges | 0 | 0 | 41 | |
Operating income | 224,049 | 235,648 | 234,505 | |
Other income (expenses): | ||||
Interest expense | (203,780) | (173,685) | (142,982) | |
Loss on extinguishment of debt | (4,066) | (34,110) | 0 | |
Change in fair value of derivatives embedded within convertible debt | 44,989 | 35,919 | 31,710 | |
Equity in earnings (losses) from investments | 3,158 | (765) | (2,754) | |
Equity in earnings from real estate ventures | 14,446 | 21,395 | 5,200 | |
Net losses recognized on investment securities | (9,570) | (660) | (3,487) | |
Other, net | 10,333 | 5,426 | 4,237 | |
Income before provision for income taxes | 79,559 | 89,168 | 126,429 | |
Income tax expense (benefit) | 21,552 | (1,582) | 49,163 | |
Net income | 58,007 | 90,750 | 77,266 | |
Net loss (income) attributed to non-controlling interest | 98 | (6,178) | (6,139) | |
Net income attributed to Vector Group Ltd. | $ 58,105 | $ 84,572 | $ 71,127 | |
Per basic common share: | ||||
Net income applicable to common share attributed to Vector Group Ltd. (in dollars per share) | $ 0.37 | $ 0.56 | $ 0.50 | |
Per diluted common share: | ||||
Net income applicable to common share attributed to Vector Group Ltd. (in dollars per share) | $ 0.37 | $ 0.56 | $ 0.50 | |
Tobacco | ||||
Revenues: | ||||
Total revenues | [1] | $ 1,111,094 | $ 1,080,950 | $ 1,011,620 |
Cost of sales: | ||||
Total cost of sales | [1] | 787,251 | 750,768 | 672,431 |
Litigation settlement and judgment expense (income) | 685 | 6,591 | 20,000 | |
Restructuring charges | 41 | |||
Real Estate | ||||
Revenues: | ||||
Total revenues | 759,168 | 727,364 | 680,105 | |
Cost of sales: | ||||
Total cost of sales | 505,233 | 477,278 | 424,829 | |
Corporate and other | ||||
Revenues: | ||||
Total revenues | 0 | (838) | (776) | |
Cost of sales: | ||||
Total cost of sales | $ 0 | $ 0 | $ 84 | |
[1] | Revenues and cost of sales include federal excise taxes of $469,836 , $460,561 and $425,980 for the years ended December 31, 2018 , 2017 and 2016 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Tax portion of revenues and cost of goods sold | $ 469,836 | $ 460,561 | $ 425,980 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 58,007 | $ 90,750 | $ 77,266 |
Net unrealized gains (losses) on investment securities available for sale: | |||
Change in net unrealized losses | (1,056) | (6,655) | (6,139) |
Net unrealized losses reclassified into net income | 1,121 | 296 | 2,474 |
Net unrealized gains (losses) on investment securities available for sale | 65 | (6,359) | (3,665) |
Net change in forward contracts | 0 | 2 | 28 |
Net change in pension-related amounts | |||
Net (loss) gain arising during the year | (3,723) | 1,768 | (3,064) |
Amortization of loss | 1,763 | 1,955 | 1,780 |
Net change in pension-related amounts | (1,960) | 3,723 | (1,284) |
Other comprehensive loss | (1,895) | (2,634) | (4,921) |
Income tax effect on: | |||
Change in net unrealized losses on investment securities | 290 | 2,707 | 2,490 |
Net unrealized losses reclassified into net income on investment securities | (308) | (120) | (1,004) |
Forward contracts | 0 | 0 | (11) |
Pension-related amounts | 538 | (1,279) | 514 |
Income tax benefit on other comprehensive loss | 520 | 1,308 | 1,989 |
Other comprehensive loss, net of tax | (1,375) | (1,326) | (2,932) |
Comprehensive income | 56,632 | 89,424 | 74,334 |
Comprehensive loss (income) attributed to non-controlling interest | 98 | (6,178) | (6,139) |
Comprehensive income attributed to Vector Group Ltd. | $ 56,730 | $ 83,246 | $ 68,195 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Deficiency - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance (in shares) | 134,365,424 | 134,365,424 | ||||||
Beginning Balance | $ (331,760) | $ (253,272) | $ (331,760) | $ (253,272) | $ (122,161) | |||
Impact of adoption of new accounting standards | $ 8,838 | 8,838 | $ (4,576) | |||||
Net income | $ 20,319 | $ 3,664 | $ 42,951 | $ (4,225) | 58,007 | 90,750 | 77,266 | |
Other comprehensive income (loss), net of tax | (1,375) | (1,326) | (2,932) | |||||
Distributions and dividends on common stock | (226,283) | (215,182) | (201,107) | |||||
Restricted stock grant | 0 | 0 | ||||||
Surrender of shares in connection with restricted stock vesting | (3,656) | (4,100) | (4,052) | |||||
Effect of stock dividend | $ 0 | 0 | 0 | |||||
Cancellation of shares under share lending agreement | $ 0 | $ 0 | ||||||
Exercise of stock options (in shares) | 0 | 0 | 36,935 | |||||
Exercise of stock options | $ 398 | |||||||
Tax benefit of options exercised | 579 | |||||||
Issuance of common stock | $ 43,230 | |||||||
Stock-based compensation | $ 9,951 | 10,887 | 10,034 | |||||
Contributions from non-controlling interest | 248 | |||||||
Acquisition of Douglas Elliman non-controlling interest | (45,153) | |||||||
Distributions to non-controlling interest | $ (2,521) | $ (2,747) | (11,545) | |||||
Beginning Balance (in shares) | 140,914,642 | 134,365,424 | 140,914,642 | 134,365,424 | ||||
Ending Balance | $ (547,366) | $ (331,760) | $ (547,366) | $ (331,760) | $ (253,272) | |||
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance (in shares) | 134,365,424 | 127,739,481 | 134,365,424 | 127,739,481 | 123,792,329 | |||
Beginning Balance | $ 13,437 | $ 12,774 | $ 13,437 | $ 12,774 | $ 12,379 | |||
Restricted stock grant (in shares) | 31,666 | 50,000 | ||||||
Restricted stock grant | $ 3 | $ 5 | ||||||
Surrender of shares in connection with restricted stock vesting (in shares) | (192,119) | (191,967) | (187,577) | |||||
Surrender of shares in connection with restricted stock vesting | $ (19) | $ (19) | $ (18) | |||||
Effect of stock dividend (in shares) | 6,709,671 | 6,436,512 | 6,087,035 | |||||
Effect of stock dividend | $ 671 | $ 644 | $ 609 | |||||
Cancellation of shares under share lending agreement (in shares) | (1,618,602) | (2,034,212) | ||||||
Cancellation of shares under share lending agreement | $ (162) | $ (204) | ||||||
Exercise of stock options (in shares) | 31,906 | |||||||
Exercise of stock options | $ 3 | |||||||
Issuance of common stock (in shares) | 2,000,000 | |||||||
Issuance of common stock | $ 200 | |||||||
Beginning Balance (in shares) | 140,914,642 | 134,365,424 | 140,914,642 | 134,365,424 | 127,739,481 | |||
Ending Balance | $ 14,092 | $ 13,437 | $ 14,092 | $ 13,437 | $ 12,774 | |||
Additional Paid-in Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | 0 | 0 | 0 | 0 | 0 | |||
Distributions and dividends on common stock | (6,311) | (49,998) | (7,173) | |||||
Restricted stock grant | (3) | (5) | ||||||
Surrender of shares in connection with restricted stock vesting | (3,637) | (4,081) | (4,034) | |||||
Cancellation of shares under share lending agreement | 162 | 204 | ||||||
Exercise of stock options | 395 | |||||||
Tax benefit of options exercised | 579 | |||||||
Issuance of common stock | 43,030 | |||||||
Stock-based compensation | 9,951 | 10,887 | 10,034 | |||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | |||
Accumulated Deficit | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | (414,785) | (333,529) | (414,785) | (333,529) | (210,113) | |||
Impact of adoption of new accounting standards | 6,354 | |||||||
Net income | 58,105 | 84,572 | 71,127 | |||||
Distributions and dividends on common stock | (219,972) | (165,184) | (193,934) | |||||
Effect of stock dividend | (671) | (644) | (609) | |||||
Acquisition of Douglas Elliman non-controlling interest | 28,800 | |||||||
Ending Balance | (542,169) | (414,785) | (542,169) | (414,785) | (333,529) | |||
Accumulated Other Comprehensive Income | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | (12,571) | (11,245) | (12,571) | (11,245) | (8,313) | |||
Impact of adoption of new accounting standards | (6,036) | |||||||
Other comprehensive income (loss), net of tax | (1,375) | (1,326) | (2,932) | |||||
Ending Balance | (19,982) | (12,571) | (19,982) | (12,571) | (11,245) | |||
Non-controlling Interest | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | $ 82,159 | $ 78,728 | 82,159 | 78,728 | 83,886 | |||
Impact of adoption of new accounting standards | $ (4,894) | |||||||
Net income | (98) | 6,178 | 6,139 | |||||
Contributions from non-controlling interest | 248 | |||||||
Acquisition of Douglas Elliman non-controlling interest | (73,953) | 78,384 | ||||||
Distributions to non-controlling interest | (2,521) | (2,747) | (11,545) | |||||
Ending Balance | $ 693 | $ 82,159 | $ 693 | $ 82,159 | $ 78,728 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Deficiency (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Distributions and dividends on common stock (in dollars per share) | $ 1.54 | $ 1.47 | $ 1.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 58,007 | $ 90,750 | $ 77,266 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 18,807 | 18,614 | 22,359 |
Non-cash stock-based expense | 9,951 | 10,887 | 10,034 |
Loss on extinguishment of debt | 3,758 | 1,754 | 0 |
Loss (gain) on sale of assets | 10 | (40) | (42) |
Deferred income taxes | (17,635) | (33,311) | 12,571 |
Distributions from long-term investments | 1,472 | 1,436 | 1,347 |
Equity in (earnings) losses from long-term investments | (3,158) | 765 | 2,754 |
Net losses on investment securities | 9,570 | 660 | 3,487 |
Equity in earnings from real estate ventures | (14,446) | (21,395) | (5,200) |
Distributions from real estate ventures | 25,935 | 37,995 | 23,446 |
Non-cash interest expense | 52,048 | 29,620 | 10,549 |
Excess tax benefit of stock compensation | 18,412 | 1,143 | 0 |
Impairment of long-term investments | 0 | 50 | 385 |
Changes in assets and liabilities: | |||
Receivables | (13,372) | (17,492) | (5,809) |
Inventories | (1,207) | 43 | (3,317) |
Accounts payable and accrued liabilities | 4,443 | 14,218 | (22,922) |
Payments due under the Master Settlement Agreement | 19,081 | (4,679) | (10,968) |
Other assets and liabilities, net | 10,158 | 568 | (18,304) |
Net cash provided by operating activities | 181,834 | 131,586 | 97,636 |
Cash flows from investing activities: | |||
Sale of investment securities | 18,628 | 28,761 | 116,070 |
Maturities of investment securities | 24,719 | 101,097 | 10,822 |
Purchase of investment securities | (34,445) | (132,654) | (117,211) |
Proceeds from sale or liquidation of long-term investments | 19,487 | 966 | 4,552 |
Purchase of long-term investments | (415) | (32,510) | (50) |
Decrease in restricted assets | 526 | 2,250 | 410 |
Investments in real estate ventures | (9,728) | (38,807) | (44,107) |
Distributions from real estate ventures | 54,233 | 61,718 | 33,204 |
Issuance of notes receivable | (450) | (1,633) | 0 |
Cash acquired in purchase of subsidiaries | 654 | 0 | 0 |
Proceeds from sale of fixed assets | 9 | 76 | 45 |
Capital expenditures | (17,682) | (19,869) | (26,691) |
Increase in cash surrender value of life insurance policies | (764) | (802) | (484) |
Purchase of subsidiaries | (10,404) | (6,569) | (250) |
Repayment of notes receivable | 67 | 0 | 4,410 |
Pay downs of investment securities | 1,611 | 2,633 | 9,212 |
Investments in real estate, net | (2,583) | (619) | (245) |
Net cash provided by (used in) investing activities | 43,463 | (35,962) | (10,313) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 325,000 | 850,021 | 243,620 |
Repayments of debt | (28,689) | (837,205) | (5,365) |
Deferred financing costs | (9,400) | (19,200) | (6,600) |
Borrowings under revolver | 307,023 | 157,630 | 144,294 |
Repayments on revolver | (310,551) | (163,474) | (110,614) |
Dividends and distributions on common stock | (225,367) | (211,488) | (198,947) |
Distributions to non-controlling interest | (2,521) | (2,779) | (11,545) |
Contributions from non-controlling interest | 0 | 0 | 248 |
Proceeds from the issuance of Vector stock | 0 | 43,230 | 0 |
Proceeds from exercise of Vector options | 0 | 0 | 398 |
Tax benefit of options exercised | 0 | 0 | 579 |
Net cash provided by (used in) financing activities | 55,495 | (183,265) | 56,068 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 280,792 | (87,641) | 143,391 |
Cash, cash equivalents and restricted cash, beginning of year | 310,937 | 398,578 | 255,187 |
Cash and cash equivalents and restricted cash, end of year | $ 591,729 | $ 310,937 | $ 398,578 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation : The consolidated financial statements of Vector Group Ltd. (the “Company” or “Vector”) include the accounts of Liggett Group LLC (“Liggett”), Vector Tobacco Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), 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. Liggett Vector Brands coordinates Liggett and Vector Tobacco’s sales and marketing efforts. Certain references to “Liggett” refer to the Company’s tobacco operations, including the business of Liggett and Vector Tobacco, unless otherwise specified. New Valley is engaged in the real estate business. (b) Estimates and Assumptions : The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Significant estimates subject to material changes in the near term include impairment charges, valuation of intangible assets, promotional accruals, actuarial assumptions of pension plans, deferred tax assets, the estimated fair value of embedded derivative liabilities, settlement accruals, valuation of investments, including other-than-temporary impairments to such investments, and litigation and defense costs. Actual results could differ from those estimates. (c) Cash and Cash Equivalents : Cash includes cash on hand, cash on deposit in banks, and money market accounts. Cash equivalents is comprised of short-term investments which have an original maturity of 90 days or less. Interest on short-term investments is recognized when earned. The Company places its cash and cash equivalents with large commercial banks. The Federal Deposit Insurance Corporation and Securities Investor Protection Corporation insure these balances, up to $250 and $500 , respectively. Substantially all of the Company’s cash balances at December 31, 2018 are uninsured. (d) Reconciliation of Cash, Cash Equivalents and Restricted Cash: Restricted cash amounts included in current restricted assets and non-current restricted assets represent cash and cash equivalents required to be deposited into escrow for bonds required to appeal adverse product liability judgments, amounts required for letters of credit related to office leases, and certain deposit requirements for banking arrangements. The restrictions related to the appellate bonds will remain in place until the appeal process has been completed. The restrictions related to the letters of credit will remain in place for the duration of the respective lease. The restrictions related to the banking arrangements will remain in place for the duration of the arrangement. The components of “Cash, cash equivalents and restricted cash” in the Consolidated Statement of Cash Flows were as follows: December 31, December 31, December 31, Cash and cash equivalents $ 584,581 $ 301,353 $ 393,530 Restricted cash and cash equivalents included in current restricted assets 2,697 9,081 914 Restricted cash and cash equivalents included in non-current restricted assets 4,451 503 4,134 Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows $ 591,729 $ 310,937 $ 398,578 (e) Investment Securities : The Company classifies investments in debt securities as available for sale. Investments classified as available for sale are carried at fair value, with net unrealized gains and losses included as a separate component of stockholders’ deficiency. The cost of securities sold is determined based on average cost. Gains are recognized when realized in the Company’s consolidated statements of operations. Losses are recognized as realized or upon the determination of the occurrence of an other-than-temporary decline in fair value. The Company’s policy is to review its securities on a periodic basis to evaluate whether any security has experienced an other-than-temporary decline in fair value. If it is determined that an other-than-temporary decline exists in one of the Company’s debt securities, it is the Company’s policy to record an impairment charge with respect to such investment in the Company’s consolidated statements of operations. On January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which changed the accounting treatment for the Company’s marketable equity securities from equity securities available for sale to equity securities at fair value. Under the new guidance, the Company’s marketable equity securities are now measured at fair value with changes in fair value recognized in net income. Gains and losses are recognized when realized in the Company’s consolidated statements of operations. Investments in marketable equity securities represent less than a 20 percent interest in the investees and the Company does not exercise significant influence over such entities. (f) Significant Concentrations of Credit Risk : Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company places its temporary cash in money market securities (investment grade or better) with, what management believes, high credit quality financial institutions. Liggett’s customers are primarily wholesalers and distributors of tobacco and convenience products as well as large grocery, drug and convenience store chains. Two customers accounted for 18% and 12% of Liggett’s revenues in 2018 , and 18% and 13% in 2017 , and 16% and 14% in 2016 . Concentrations of credit risk with respect to trade receivables are generally limited due to Liggett’s large number of customers. Liggett’s two largest customers represented approximately 11% and 4% , respectively, of Liggett’s net accounts receivable at December 31, 2018 , and 7% and 5% , respectively, at December 31, 2017 . Ongoing credit evaluations of customers’ financial condition are performed and, generally, no collateral is required. Liggett maintains reserves for potential credit losses and such losses, in the aggregate, have not exceeded management’s expectations. (g) Accounts Receivable : Accounts receivable-trade are recorded at their net realizable value. The allowance for doubtful accounts and cash discounts was $766 and $398 at December 31, 2018 and 2017 , respectively. Uncollectible accounts are written off when the likelihood of collection is remote and when collection efforts have been abandoned. (h) Inventories : Tobacco inventories are stated at the lower of cost and net realizable value with cost determined primarily by the last-in, first-out (LIFO) method at Liggett and Vector Tobacco. Although portions of leaf tobacco inventories may not be used or sold within one year because of the time required for aging, they are included in current assets, which is common practice in the industry. (i) Property, Plant and Equipment : Property, plant and equipment are stated at cost. Property, plant and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets, which are 20 to 30 years for buildings and 3 to 10 years for machinery and equipment. Repairs and maintenance costs are charged to expense as incurred. The costs of major renewals and betterments are capitalized. The cost and related accumulated depreciation of property, plant and equipment are removed from the accounts upon retirement or other disposition and any resulting gain or loss is reflected in operations. The cost of leasehold improvements is amortized over the lesser of the related leases or the estimated useful lives of the improvements. Costs of major additions and betterments are capitalized, while expenditures for routine maintenance and repairs are charged to expense as incurred. (j) Investments in Real Estate Ventures : In accounting for its investments in real estate ventures, the Company identified its participation in Variable Interest Entities (“VIE”), which are defined as entities in which the equity investors at risk have not provided enough equity at risk to finance its activities without additional subordinated support or the equity investors at risk (1) cannot directly or indirectly make decisions about the entity’s activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company’s interest in VIEs is primarily in the form of equity ownership. The Company examines specific criteria and uses judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights exclusive of protective rights or voting rights and level of economic disproportionality between the Company and its other partner(s). Accounting guidance requires the consolidation of VIEs in which the Company is the primary beneficiary. The guidance requires consolidation of VIEs that an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s maximum exposure to loss in its investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs which is the carrying value. The Company’s maximum exposure to loss in its investment in its consolidated VIEs is limited to its investment which is the carrying value of the investment net of the non-controlling interest. Creditors of the consolidated VIEs have no recourse to the general credit of the primary beneficiary. On a quarterly basis, the Company evaluates its investments in real estate ventures to determine if there indicators of impairment. If so, the Company further investigates to determine if an impairment has occurred and whether such impairment is considered temporary or other than temporary. The Company believes that the assessment of temporary or other-than-temporary impairment is facts-and-circumstances driven. (k) Goodwill and Other Intangible Assets: Goodwill from acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in the Company’s acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) the Company’s strategies for growth in sales, income and cash flows. Goodwill is tested for impairment at least annually as of October 1 and monitored for interim triggering events on an on-going basis. Other intangible assets with indefinite useful lives are not amortized, but rather, are tested for impairment at least annually. In evaluating goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, the Company considers individual factors such as macroeconomic conditions, changes in the industry and the markets in which the Company operates as well as the historical and expected future financial performance. If the Company concludes that it is more likely than not that fair value is less than its carrying value, recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of the reporting unit to the Company’s carrying amount. Fair value is determined based on an income approach and a market approach that are equally weighted. If the carrying amount of the reporting unit, including the goodwill, exceeds the fair value of the reporting unit, the second step is performed. The second step involves a comparison of the implied fair value and carrying value of the goodwill of the reporting unit. To the extent that the carrying amount exceeds the implied fair value of the goodwill, an impairment loss is recognized. To determine the implied fair value of the Company’s indefinite-lived intangible asset, trademark, it utilizes the relief-from-royalty method, pursuant to which the asset is valued by reference to the amount of royalty income it would generate if licensed in an arm’s length transaction. Under the relief-from-royalty method, similar to the discounted cash flow method, estimated net revenues expected to be generated by the asset during its life are multiplied by a benchmark royalty rate and then discounted by the estimated weighted average cost of capital associated with the asset. The resulting capitalized royalty stream is an indication of the value of owning the asset. To the extent that the carrying amount exceeds the implied fair value of the intangible asset, an impairment loss is recognized. The fair value of the intangible asset associated with the benefit under the Master Settlement Agreement (“MSA”) is calculated using discounted cash flows. This approach involves two steps: (i) estimating future cash savings due to the payment exemption under the MSA and (ii) discounting the resulting cash flow savings to determine fair value. This fair value is then compared with the carrying value of the intangible asset associated with the benefit under the MSA. To the extent that the carrying amount exceeds the implied fair value of the intangible asset, an impairment loss is recognized. Intangible assets with finite lives are amortized over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. (l) Impairment of Long-Lived Assets : The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs a test for recoverability, comparing projected undiscounted cash flows to the carrying value of the asset group to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on fair value of the asset on the basis of discounted cash flow. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Additionally, the Company performs impairment reviews on its long-term investment that is classified as equity securities without readily determinable fair values that do not qualify for the net asset value (“NAV”) practical expedient. On a quarterly basis, the Company evaluates the investment to determine if there are indicators of impairment. If so, a determination is made of whether there is an impairment and if it is considered temporary or other than temporary. The assessment of temporary or other-than-temporary impairment is facts-and-circumstances driven. The impairment indicators that are taken into consideration as part of the analysis include (a) a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, (b) a significant adverse change in the regulatory, economic, or technological environment of the investee, (c) a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates, and (d) factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. (m) Pension, Postretirement and Postemployment Benefits Plans : The cost of providing retiree pension benefits, health care and life insurance benefits is actuarially determined and accrued over the service period of the active employee group. The Company recognizes the funded status of each defined benefit pension plan, retiree health care and other postretirement benefit plans and postemployment benefit plans on the balance sheet. (See Note 12 .) (n) Stock Options and Awards : The Company accounts for employee stock compensation plans by measuring compensation cost for share-based payments at fair value at grant date. The fair value is recognized as compensation expense over the vesting period on a straight-line basis. The terms of certain stock options awarded under the 2014 Management Incentive Plan and under the 1999 Plan provide for common stock dividend equivalents (paid in cash at the same rate as paid on the common stock) with respect to the shares underlying the unvested portion of the options. The Company recognizes payments of the dividend equivalent rights on these options on the Company’s consolidated balance sheet as reductions in additional paid-in capital until fully utilized and then accumulated deficit ( $8,696 , $7,655 and $6,258 , net of income taxes, for the years ended December 31, 2018 , 2017 and 2016 , respectively), which are included as “Distributions and dividends on common stock” in the Company’s consolidated statement of stockholders’ deficiency. (o) Income Taxes : The Company accounts for income taxes under the liability method and records deferred taxes for the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes as well as tax credit carryforwards and loss carryforwards. These deferred taxes are measured by applying the enacted tax rates relative to when the deferred item is expected to reverse. A valuation allowance reduces deferred tax assets when it is deemed more likely than not that some portion or all of the deferred tax assets will not be realized. A current tax provision is recorded for income taxes currently payable. The Company accounts for uncertainty in income taxes by recognizing the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. If the tax position meets the more-likely-than-not recognition threshold, the tax effect is recognized at the largest amount of the benefit that is greater than 50% likely of being realized upon ultimate settlement. The guidance requires that a liability created for unrecognized deferred tax benefits shall be presented as a liability and not combined with deferred tax liabilities or assets. The Company classifies all tax-related interest and penalties as income tax expense. (p) Distributions and Dividends on Common Stock : The Company records distributions on its common stock as dividends in its consolidated statement of stockholders’ deficiency to the extent of retained earnings. Any amounts exceeding retained earnings are recorded as a reduction to additional paid-in-capital to the extent paid-in-capital is available and then to accumulated deficit. The Company’s stock dividends are recorded as stock splits and given retroactive effect to earnings per share for all years presented. (q) Revenue Recognition : Tobacco: Revenue from cigarette sales, which include federal excise taxes billed to customers, are recognized upon shipment of cigarettes when control has passed to the customer. Average collection terms for Tobacco sales range between three and twelve days from the time that the cigarettes are shipped to the customer. The Company records an allowance for goods estimated to be returned in other current liabilities and the associated receivable for anticipated federal excise tax refunds in other current assets on the condensed consolidated balance sheet. The allowance for returned goods is based principally on sales volumes and historical return rates. The estimated costs of sales incentives, including customer incentives and trade promotion activities, are based principally on historical experience and are accounted for as reductions in Tobacco revenue. Expected payments for sales incentives are included in other current liabilities on the Company’s condensed consolidated balance sheet. The Company accounts for shipping and handling costs as fulfillment costs as part of cost of sales. Tobacco Shipping and Handling Fees and Costs: Shipping and handling fees related to sales transactions are neither billed to customers nor recorded as revenue. Shipping and handling costs were $5,658 in 2018 , $5,012 in 2017 and $5,268 in 2016 . Shipping and handling costs related to sales transactions were part of cost of sales in 2018 after the adoption of Topic 606. The 2017 and 2016 shipping and handling costs related to sales transactions were part of operating, selling, administrative and general expenses. Real estate sales: Real estate commissions earned by the Company’s real estate brokerage businesses are recognized as revenue at the point in time that the real estate sale is completed or lease agreement is executed, which is the point in time that the performance obligation is satisfied. Any commission and other payments received in advance are deferred until the satisfaction of the performance obligation. Corresponding agent commission expenses, including any advance commission or other direct expense payments, are deferred and recognized as cost of sales concurrently with related revenues. The accounting for these commissions and other brokerage income under Topic 606 are largely consistent with the previous accounting for these transactions under Topic 605, except for customer arrangements in the development marketing business and extended payments terms that exist in some commercial leasing contracts. Property management revenue arrangements consist of providing operational and administrative services to manage a subject property. Fees for these services are typically billed and collected monthly. Property management service fees are recognized as revenue over time using the output method as the performance obligations under the customer arrangement are satisfied each month, which are largely consistent with the accounting practices under Topic 605. (r) Advertising : Tobacco advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $3,672 , $3,712 and $3,397 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Real estate advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $23,424 , $19,412 and $22,835 for the years ended December 31, 2018 and 2017 and 2016 , respectively. (s) Comprehensive Income : The Company presents net income and other comprehensive income in two separate, but consecutive, statements. The items are presented before related tax effects with detailed amounts shown for the income tax expense or benefit related to each component of other comprehensive income. The components of accumulated other comprehensive loss, net of income taxes, were as follows: December 31, December 31, December 31, Net unrealized gains on investment securities available for sale, net of income taxes of $60, $3,687, and $6,272, respectively $ 108 $ 6,097 $ 9,869 Forward contracts adjustment, net of income taxes of $0, $0, and $0, respectively — — (2 ) Pension-related amounts, net of income taxes of $13,750, $13,212, and $14,491, respectively (20,090 ) (18,668 ) (21,112 ) Accumulated other comprehensive loss $ (19,982 ) $ (12,571 ) $ (11,245 ) (t) 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. A readily determinable fair value of the embedded derivatives is not available. 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. 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 December 31, 2018 , the range of estimated fair market values of the Company’s embedded derivatives was between $31,371 and $31,519 . The Company recorded the fair market value of its embedded derivatives at the approximate midpoint of the range at $31,424 as of December 31, 2018 . At December 31, 2017 , the range of estimated fair market values of the Company’s embedded derivatives was between $76,215 and $76,874 . The Company recorded the fair market value of its embedded derivatives at the midpoint of the range at $76,413 as of December 31, 2017 . The estimated fair market value of the Company’s embedded derivatives could change significantly based on future market conditions. (See Note 10 .) (u) Contingencies : 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. As discussed in Note 15 , legal proceedings covering a wide range of matters are pending or threatened in various jurisdictions against Liggett and the Company. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, except as disclosed in Note 15 : (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. The Company records Liggett’s product liability legal expenses as operating, selling, administrative and general expenses as those costs are incurred. (v) Other, Net : Other, net consists of: Year Ended December 31, 2018 2017 2016 Interest and dividend income $ 11,349 $ 7,391 $ 6,018 Net periodic benefit cost other than the service costs (1,020 ) (1,960 ) (1,508 ) Other income (expense) 4 (5 ) (273 ) Other, net $ 10,333 $ 5,426 $ 4,237 (w) Other Current Liabilities: Other current liabilities consist of: December 31, 2018 December 31, 2017 Accounts payable $ 13,144 $ 18,552 Accrued promotional expenses 37,940 30,691 Accrued excise and payroll taxes payable, net 14,612 11,946 Accrued interest 38,673 33,138 Commissions payable 12,975 14,320 Accrued salaries and benefits 30,228 29,639 Allowance for sales returns 6,935 5,632 Other current liabilities 24,646 13,205 Total other current liabilities $ 179,153 $ 157,123 (x) New Accounting Pronouncements : Accounting Standards Updates (“ASU”) adopted in 2018 : In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740), Amendments Pursuant to SEC Staff Accounting Bulletin No. 118.” The ASU adds various Securities and Exchange Commission (“SEC”) paragraphs pursuant to the issuance of the December 2017 SEC Staff Accounting Bulletin No. 118 (“SAB 118”), Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which was effective immediately. The SEC issued SAB 118 to address concerns about reporting entities’ ability to timely comply with the accounting requirements to recognize all of the effects of the Tax Cuts and Jobs Act in the period of enactment. SAB 118 requires disclosure that timely determination of some or all of the income tax effects from the Tax Cuts and Jobs Act are incomplete at the time of filing the financial statements and disclosure upon completion of measurement of the effects. Additionally, the Company has accounted for the tax effects of the Tax Cuts and Jobs Act under the guidance of SAB 118. The Company has recorded the effects of the Tax Act in its consolidated financial statements as of December 31, 2018 and reflected the provisional amounts as of December 31, 2017 . In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). ASU 2017-07 provides guidance that requires an employer to report the service cost component separate from the other components of net benefit pension costs. The employer is required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement must be disclosed. The Company adopted ASU 2017-07 in 2018 using a retrospective adoption method. Other than the revised statement of operations presentation, the adoption of ASU 2017-07 did not have a material impact on the Company’s consolidated financial statements. For the years ended December 31, 2017 December 31, 2016 As Previously Reported Adoption of ASU 2017-07 As Revised As Previously Reported Adoption of ASU 2017-07 As Revised Operating, selling, administrative and general expenses $ 339,151 $ (1,960 ) $ 337,191 $ 340,567 $ (1,508 ) $ 339,059 Operating income 233,688 1,960 235,648 232,997 1,508 234,505 Other, net 7,386 (1) (1,960 ) 5,426 5,745 (1) (1,508 ) 4,237 Income before provision for income taxes 89,168 — 89,168 126,429 — 126,429 (1) Adjusted to conform to the current-year presentation for the consolidated statements of operations. Prior to these adjustments, Other, net was $7,022 and $4,732 for the years ended December 31, 2017 and 2016 , respectively. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) (“ASU 2016-18”). ASU 2016-18 provides guidance on the classification of restricted cash to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. The Company adopted ASU 2016-18 during the first quarter of 2018 using a retrospective adoption method. Other than the changes in presentation within the statement of cash flows, the adoption of ASU 2016-18 did not have a material impact on the Company’s consolidated financial statements. See Note 1. item (d) for a reconciliation of cash, cash equivalents, and restricted cash from the consolidated balance sheet to the consolidated statement of cash flows. December 31, 2017 December 31, 2016 As Previously Reported Adoption of ASU 2016-18 As Revised As Previously Reported Adoption of ASU 2018-18 As Revised (Increase) decrease in restricted |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenue Recognition Accounting Pronouncement Adoption On January 1, 2018, the Company adopted Topic 606 applying the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the FASB Accounting Standard Codification Topic 605 (“Topic 605”) in effect for the prior periods and are, therefore, not comparative. The following practical expedients and optional disclosure exemptions available under Topic 606 have been applied: 1. The Company applied the practical expedient in paragraph 606-10-65-1(h) of Topic 606, and did not restate contracts that were completed as of the date of initial application i.e. January 1, 2018. 2. The Company applied the practical expedient in paragraph 606-10-65-1(f)(4) of Topic 606, and did not separately evaluate the effects of contract modifications. Instead, the Company reflected the aggregate effect of all the modifications that occurred before the initial application date, i.e. January 1, 2018. 3. The Company applied the optional exemption in paragraph 606-10-50-14 of Topic 606, and has not disclosed the amount of the transaction price allocated to the remaining performance obligations for the Real Estate property management business because the contracts to provide property management services are typically annual contracts and provide cancellation rights to customers. 4. The Company applied the optional exemption in paragraph 606-10-50-14A of Topic 606, and has not disclosed the amount of the transaction price allocated to the remaining performance obligations for the Real Estate development marketing business because the transaction prices in these contracts are comprised entirely of variable consideration based on the ultimate selling price of each unit in the subject property. The total contract transaction price is allocated to each unit in the subject property and recognized when the performance obligation, i.e. the sale of each unit, is satisfied. Accordingly, the transaction price allocated to the remaining performance obligations for the development marketing business represents variable consideration allocated entirely to wholly unsatisfied performance obligations. The details of the significant changes and quantitative impact of the changes resulting in the adoption of Topic 606 are set out below. Tobacco: The adoption of the new revenue standard had no impact on the timing of Tobacco revenue recognition. However, certain amounts previously classified as revenue, cost of sales and operating, selling, administrative and general expenses in the condensed consolidated statement of operations are classified differently beginning January 1, 2018. Certain amounts previously classified as other current liabilities on the consolidated balance sheet at December 31, 2017 were also reclassified. Upon adoption of the new revenue standard, the Company elected to account for shipping and handling expenses that occur after the customer has obtained control of cigarettes as a fulfillment activity in cost of sales. Prior to the adoption of Topic 606, these costs were recorded as operating, selling, administrative and general expenses. In addition, the Company determined that payments to customers attributed to the sharing of sales data that were previously presented as operating, selling, administrative and general expenses do not constitute a distinct service under the new standard and are now presented as a reduction in Tobacco revenue. Prior to the adoption of Topic 606, the Company’s allowance for expected sales returns, net of expected federal excise tax recoveries was presented in other current liabilities. Changes in the allowance for expected sales returns were reflected as a change in Tobacco revenue. Upon adoption of Topic 606, the Company records an allowance for goods estimated to be returned in other current liabilities and an associated receivable for anticipated federal excise tax refunds in other current assets on the condensed consolidated balance sheet. Changes in the liability for sales returns continue to be reflected in Tobacco revenue, while changes in the receivable associated with expected federal excise tax refunds on returns are reflected in Tobacco cost of sales. Real Estate. Certain services and advanced payments in the Company’s Real Estate development marketing business do not meet the requirements for revenue recognition as a separate performance obligation. Accordingly, these revenues, previously recognized, have been deferred under the new standard until the performance obligation is met. In addition, certain direct fulfillment costs in its Real Estate development marketing business that were previously expensed upon payment, have now been deferred under the new standard until the performance obligation is met. Certain expense reimbursements, previously recorded as a reduction of operating expense, are now presented as revenue under Topic 606 as the Company is the principal in the related transaction. Some real estate brokerage commercial leasing contracts specify extended payment terms for commission payments. Under Topic 606, revenue is recognized at the time the performance obligation is satisfied, including any amounts of future payments for extended payment terms. Accordingly, these future payments, previously recognized as revenue upon receipt, have been accrued under the new standard when the performance obligation is satisfied. Impacts on Financial Statements on January 1, 2018 : The following tables summarize the impacts of Topic 606 adoption on the Company’s condensed consolidated balance sheet as of January 1, 2018. As Previously Reported Adjustments As Revised December 31, 2017 Tobacco Real Estate January 1, 2018 ASSETS: Accounts receivable - trade, net $ 29,481 $ — $ 4,514 (2) $ 33,995 Other current assets 21,121 2,525 (1) 5,124 (3) 28,770 Total current assets 613,709 2,525 9,638 625,872 Other assets 36,786 — 9,512 (3) 46,298 Total assets $ 1,328,278 $ 2,525 $ 19,150 $ 1,349,953 LIABILITIES AND STOCKHOLDERS’ DEFICIENCY: Other current liabilities $ 157,123 $ 2,525 (1) $ 7,806 (2)(4) $ 167,454 Total current liabilities 204,639 2,525 7,806 214,970 Deferred income taxes, net 58,801 — (3,224 ) (5) 55,577 Other liabilities 22,380 — 27,983 (4) 50,363 Total liabilities 1,660,038 2,525 32,565 1,695,128 Accumulated deficit (414,785 ) — (8,521 ) (423,306 ) Total Vector Group Ltd. stockholders' deficiency (413,919 ) — (8,521 ) (6) (422,440 ) Non-controlling interest 82,159 — (4,894 ) (6) 77,265 Total stockholders' deficiency (331,760 ) — (13,415 ) (7) (345,175 ) Total liabilities and stockholders' deficiency $ 1,328,278 $ 2,525 $ 19,150 $ 1,349,953 (1) Adjustments to other current assets and other current liabilities for $2,525 relates to the presentation as a receivable the component of the allowance for sales returns representing the federal excise tax refunds expected for future returned product as a receivable in other current assets, which was previously presented as a reduction to the allowance for sales returns liability in other current liabilities. (2) Adjustments of $4,514 to accounts receivable and $3,139 to other current liabilities relate to commission receivables and commissions payable from the Real Estate commercial leasing contracts for which the performance obligation has been satisfied, have extended payment terms and are expected to be received and paid in the next twelve-months. (3) Adjustments of $5,124 to other current assets and $9,512 to other assets, initially reported as $623 to other current assets and $3,740 to other assets was revised during the year, represents the current and noncurrent portions, respectively, of deferred contract costs relating to direct fulfillment costs incurred in advance of the satisfaction of performance obligations for Development Marketing arrangements. (4) Adjustments of $4,667 to other current liabilities and $27,983 to other liabilities relate to the current and long term portions, respectively, of contract liabilities representing payments received from customers in advance of the performance obligations being satisfied under contracts for Real Estate development marketing. (5) Adjustment reflects the tax effect of the adoption of Topic 606 which was estimated to result in a decrease in net deferred income tax liability of $3,224 , based on a recalculation of the income tax provision using the Company’s deferred rate of approximately 27.26% . The adjustment initially reported as $5,217 was revised during the year, (6) The allocation of the net impact of the adoption of Topic 606 between accumulated deficit and non-controlling interest is based on relative ownership interest of 70.59% and 29.41% , respectively. (7) Adjustment of $13,415 to increase opening stockholders’ deficiency, initially reported as $21,695 was revised during the year, represents the cumulative impact of adopting Topic 606 which resulted in an increase to opening stockholders’ deficiency, allocated to increases in accumulated deficit and decreases in non-controlling interest as of January 1, 2018. Impacts on Financial Statements at December 31, 2018 : The following table compares the reported condensed consolidated balance sheet as of December 31, 2018 , to the pro-forma amounts had the previous guidance been in effect: As Reported Pro forma as if the previous accounting guidance were in effect Increase/(Decrease) ASSETS: Accounts receivable - trade, net $ 34,246 $ 32,196 $ 2,050 (1) Other current assets 26,351 17,085 9,266 (2)(3) Total current assets 872,221 860,905 11,316 Other assets 60,177 47,068 13,109 (3) Total assets $ 1,549,504 $ 1,525,079 $ 24,425 LIABILITIES AND STOCKHOLDERS' DEFICIENCY: Income taxes payable, net $ 5,252 $ 5,375 $ (123 ) (6) Other current liabilities 179,153 168,905 10,248 (1)(2)(4) Total current liabilities 484,920 474,795 10,125 Deferred income taxes, net 37,411 40,563 (3,152 ) (5) Other liabilities 63,588 33,143 30,445 (4) Total liabilities 2,096,870 2,059,452 37,418 Stockholders' deficiency: — Accumulated deficit (542,169 ) (533,961 ) (8,208 ) (6) Total Vector Group Ltd. stockholders' deficiency (548,059 ) (539,851 ) (8,208 ) Non-controlling interest 693 5,478 (4,785 ) (6) Total stockholders' deficiency (547,366 ) (534,373 ) (12,993 ) Total liabilities and stockholders' deficiency $ 1,549,504 $ 1,525,079 $ 24,425 (1) Adjustments of $2,050 to accounts receivable and $1,082 to other current liabilities relate to commission receivables and commissions payable from the Real Estate commercial leasing contracts for which the performance obligation has been satisfied, have extended payment terms and are expected to be received and paid in the next twelve-months. (2) Adjustments to other current assets and other current liabilities for $2,095 relate to the presentation of the component of the allowance for sales returns representing the federal excise tax refunds expected for future returned product as a receivable in other current assets, which was previously presented as a reduction to the allowance for sales returns liability in other current liabilities. (3) Adjustments of $7,171 to other current assets and $13,109 to other assets represents the current and noncurrent portions, respectively, of deferred contract costs relating to direct fulfillment costs incurred in advance of the satisfaction of performance obligations for Development Marketing arrangements. (4) Adjustments of $7,071 to other current liabilities and $30,445 to other liabilities relate to the current and long term portions, respectively, of contract liabilities representing payments received from customers in advance of the performance obligations being satisfied under contracts for Real Estate development marketing. (5) Adjustments reflect the tax effect of the adoption of Topic 606 based on a recalculation of the income tax provision using the estimated annual effective tax rate of approximately 35.49% and the Company’s deferred rate approximately 27.26% . (6) The allocation of the net impact of the adoption of Topic 606 between accumulated deficit and non-controlling interest is based on relative ownership interest of 70.59% and 29.41% , respectively. The following table compares the reported condensed consolidated statement of operations for the year ended December 31, 2018 , to the pro-forma amounts had the previous guidance been in effect: As Reported Pro forma as if the previous accounting guidance were in effect Increase/(Decrease) Revenues: Tobacco $ 1,111,094 $ 1,112,733 $ (1,639 ) Real estate 759,168 765,549 (6,381 ) Total revenues 1,870,262 1,878,282 (8,020 ) (1) Expenses: Cost of sales: Tobacco 787,251 781,163 6,088 Real estate 505,233 512,744 (7,511 ) Total cost of sales 1,292,484 1,293,907 (1,423 ) (2) Operating, selling, administrative and general expenses 355,513 362,481 (6,968 ) (3) Operating income 224,049 223,678 371 Income before provision for income taxes 79,559 79,188 371 Income tax expense 21,552 21,501 51 (4) Net income 58,007 57,687 320 Net income attributed to non-controlling interest 98 207 (109 ) Net income attributed to Vector Group Ltd. $ 58,105 $ 57,894 $ 211 Per basic common share: Net income applicable to common share attributed to Vector Group Ltd. $ 0.37 $ 0.36 Per diluted common share: Net income applicable to common share attributed to Vector Group Ltd. $ 0.37 $ 0.36 (1) The impact to revenue for the year ended December 31, 2018 was a decrease of $8,020 primarily due to $4,677 of commission revenue payments received in the current period for the Real Estate Commercial Leasing business relating to performance obligations satisfied and accrued for in prior periods under Topic 606, and $20,385 in advance commission and reimbursable services payments received in the current period for the Real Estate Development Marketing business that are deferred since they do not constitute satisfied performance obligations under Topic 606. These decreases were offset by $18,683 in revenue recognized for performance obligations satisfied in the current period. Commission payments for these businesses would have been previously recognized as revenue upon receipt. Additionally, certain incentive payments to customers of the Tobacco business, approximating $2,069 for the period, that were previously classified as operating, selling, administrative and general expenses are now classified as a reduction in revenue under Topic 606. Also, the change in federal excise tax receivable component of the sales returns reserve, approximating $430 for the period, that was previously presented as a net impact to cost of sales of the Tobacco business is now presented on a gross basis as an adjustment to revenue. (2) The impact to cost of sales was a decrease of $1,423 primarily related to the reclassification of $5,658 of Tobacco shipping and handling costs from operating, selling, administrative and general expenses to costs of sales as a result of adopting Topic 606, offset by a $7,511 decrease from the Real Estate business related primarily to commission expense payments made in the current period that relate to performance obligations satisfied and accrued for in prior periods or deferred until the performance obligation is satisfied. (3) The impact to operating, selling, administrative and general expenses was a decrease of $6,968 primarily due to: • The reclassification of $5,658 Tobacco shipping and handling costs to cost of sales, • The reclassification of $2,069 incentive payments to customers to revenue for the Tobacco business, • The deferral of $18,322 of direct costs in the Real Estate Development Marketing business related to performance obligations not satisfied as discussed above, offset by the amortization of previously deferred contract costs of $12,678 . • The reclassification of $949 of reimbursable service payments to revenue related to the Real Estate Development Marketing business. (4) The net impact of the adoption of Topic 606 was estimated to result in an increase in income taxes of $51 based on a recalculation of the income tax provision using the estimated annual effective tax rate of approximately 35.49% and the Company’s deferred tax rate of approximately 27.26% . The adoption of the standard did not have a material impact to the Company’s condensed consolidated statement of cash flows for the year ended December 31, 2018 . Revenue Recognition Policies Revenue is measured based on a consideration specified in a contract with a customer and excludes any sales incentives. Revenue is recognized when (a) an enforceable contract with a customer exists, that has commercial substance, and collection of substantially all consideration for services is probable; and (b) the performance obligations to the customer are satisfied either over time or at a point in time. Tobacco sales: Prior to the adoption of Topic 606, revenues from cigarette sales, which included federal excise taxes billed to customers, were recognized upon the shipment of finished goods when title and risk of loss had passed to the customer, there was persuasive evidence of an arrangement, the sale price was fixed or determinable and collectability was reasonably assured. The Company provided an allowance for expected sales returns, net of any related cost recoveries (e.g. federal excise taxes). Certain sales incentives, including promotional price discounts, were presented as reductions of net sales. Shipping and handling fees related to sales transactions were recorded as operating, selling, administrative and general expenses. After the adoption of Topic 606, revenue from cigarette sales, which include federal excise taxes billed to customers, are recognized upon shipment of cigarettes when control has passed to the customer. Average collection terms for Tobacco sales range between three and twelve days from the time that the cigarettes are shipped to the customer. The Company records an allowance for goods estimated to be returned in other current liabilities and the associated receivable for anticipated federal excise tax refunds in other current assets on the condensed consolidated balance sheet. The allowance for returned goods is based principally on sales volumes and historical return rates. The estimated costs of sales incentives, including customer incentives and trade promotion activities, are based principally on historical experience and are accounted for as reductions in Tobacco revenue. Expected payments for sales incentives are included in other current liabilities on the Company’s condensed consolidated balance sheet. The Company accounts for shipping and handling costs as fulfillment costs as part of cost of sales. Real estate sales: Prior to the adoption of Topic 606, revenue was recognized only when persuasive evidence of an arrangement existed, the price was fixed or determinable, the transaction had been completed and collectability of the resulting receivable was reasonably assured. Real estate commissions earned by the Company’s real estate brokerage businesses were recorded as revenue upon the closing of a real estate sale or leasing transaction, as evidenced when the escrow or similar account was closed, the transaction documents have been recorded and funds were distributed to all appropriate parties. Agents’ commissions expense was recognized as cost of sales concurrently with related revenues. Property management fees were recorded as revenue when the related services were performed and the earnings process was complete. Title insurance commission fee revenue is earned when the sale of the title insurance policy is completed, which corresponds to the point in time when the underlying real estate sale transaction closes and the payment is received. After the adoption of Topic 606, real estate commissions earned by the Company’s real estate brokerage businesses are recognized as revenue at the point in time that the real estate sale is completed or lease agreement is executed, which is the point in time that the performance obligation is satisfied. Any commission and other payments received in advance are deferred until the satisfaction of the performance obligation. Corresponding agent commission expenses, including any advance commission or other direct expense payments, are deferred and recognized as cost of sales concurrently with related revenues. The accounting for these commissions and other brokerage income under Topic 606 are largely consistent with the previous accounting for these transactions under Topic 605, except for customer arrangements in the development marketing business and extended payments terms that exist in some commercial leasing contracts. The Company’s Real Estate revenue contracts with customers do not have multiple material performance obligations to customers under Topic 606, except for contracts in the Company’s development marketing business. Contracts in the development marketing business provide the Company with the exclusive right to sell units in a subject property for a commission fee per unit sold calculated as a percentage of the sales price of each unit. Accordingly, a performance obligation exists for each unit in the development marketing property under contract, and a portion of the total contract transaction price is allocated to and recognized at the time each unit is sold. Under development marketing service arrangements, dedicated staff are required for a subject property and these costs are typically reimbursed from the customer through advance payments that sometimes are recoupable from future commission earnings. Advance payments received and associated direct costs paid are deferred, allocated to each unit in the subject property, and recognized consistent with the pattern of value transferred to the customer, which is at the time of the completed sale of each unit. Under Topic 605 any advance payments received that were non-refundable were recognized as revenue when received. Similarly, under Topic 605 any non-refundable advance payments made of commission expenses and other direct costs were expensed when paid. Development marketing service arrangements also include direct fulfillment costs incurred in advance of the satisfaction of the performance obligation. The Company capitalizes costs incurred in fulfilling a contract with a customer if the fulfillment costs 1) relate directly to an existing contract or anticipated contract, 2) generate or enhance resources that will be used to satisfy performance obligations in the future, and 3) are expected to be recovered. These costs are amortized over the estimated customer relationship period which is the contract term. The Company uses an amortization method that is consistent with the pattern of transfer of goods or services to its customers by allocating these costs to each unit the subject property and expensing these costs as each unit is sold. Under Topic 605, these direct costs were expensed as incurred. Revenue is recognized at the time the performance obligation is met for commercial leasing contracts, which is when the lease agreement is executed, as there are no further performance obligations, including any amounts of future payments under extended payment terms. Under Topic 605, these future payments were recognized as revenue upon receipt because collectibility might not have been reasonably assured at the time the performance obligation was met. Property management revenue arrangements consist of providing operational and administrative services to manage a subject property. Fees for these services are typically billed and collected monthly. Property management service fees are recognized as revenue over time using the output method as the performance obligations under the customer arrangement are satisfied each month, which are largely consistent with the accounting practices under Topic 605. Disaggregation of Revenue In the following table, revenue is disaggregated by major product line for the Tobacco segment: Year Ended December 31, 2018 2017 2016 Tobacco Segment Revenues: Core Discount Brands - Pyramid, EAGLE 20’s, Grand Prix, Liggett Select, and Eve $ 1,005,071 $ 969,796 $ 892,507 Other Brands 106,023 111,154 119,113 Total tobacco revenues $ 1,111,094 $ 1,080,950 $ 1,011,620 In the following table, revenue is disaggregated by major services line and primary geographical market for the Real Estate segment: Year Ended December 31, 2018 Total New York City Northeast Southeast West Real Estate Segment Revenues : Commission and other brokerage income $ 651,171 $ 285,325 $ 166,100 $ 99,720 $ 100,026 Development marketing 64,287 48,072 252 15,068 895 Property management income 33,350 32,635 715 — — Title fees 5,281 — 5,281 — — Total Douglas Elliman revenue 754,089 366,032 172,348 114,788 100,921 Other real estate revenues 5,079 — — — 5,079 Total real estate revenues $ 759,168 $ 366,032 $ 172,348 $ 114,788 $ 106,000 Year Ended December 31, 2017 Total New York City Northeast Southeast West Real Estate Segment Revenues : Commission and other brokerage income $ 633,093 $ 332,319 $ 168,834 $ 79,547 $ 52,393 Development marketing 52,061 37,761 402 11,211 2,687 Property management income 31,924 31,224 700 — — Title fees 5,265 — 5,265 — — Total Douglas Elliman revenue 722,343 401,304 175,201 90,758 55,080 Other real estate revenues 5,021 — — — 5,021 Total real estate revenues $ 727,364 $ 401,304 $ 175,201 $ 90,758 $ 60,101 Year Ended December 31, 2016 Total New York City Northeast Southeast West Real Estate Segment Revenues : Commission and other brokerage income $ 553,158 $ 317,397 $ 158,017 $ 58,875 $ 18,869 Development marketing 87,893 76,278 521 10,535 559 Property management income 29,883 29,241 642 — — Title fees 4,324 — 4,324 — — Total Douglas Elliman revenue 675,258 422,916 163,504 69,410 19,428 Other real estate revenues 4,847 — — — 4,847 Total real estate revenues $ 680,105 $ 422,916 $ 163,504 $ 69,410 $ 24,275 The majority of the Company’s consolidated revenues are recognized at a point in time. A small portion of revenues from contracts with customers are earned by providing services, such as property management, and these performance obligations are satisfied over time. Contract Balances The following table provides information about receivables, contracts assets, and contract liabilities from contracts with customers: December 31, 2018 At Adoption Receivables, which are included in accounts receivable - trade, net $ 2,050 $ 4,514 Contract costs, net, which are included in other current assets 9,264 7,217 Payables, which are included in other current liabilities 1,082 3,139 Contract liabilities, which are included in other current liabilities 7,071 4,667 Contract costs, net, which are included in other assets 15,794 12,197 Contract liabilities, which are included in other liabilities 30,445 27,983 Receivables and payables relate to commission receivables and commissions payable from the Real Estate commercial leasing contracts for which the performance obligation has been satisfied, have extended payment terms for commission payments and are expected to be received and paid in the next twelve months. Receivables decreased $2,464 for the twelve -month period ended December 31, 2018 primarily due to cash collections of $4,677 , offset by additional revenue accrued as performance obligations are satisfied. Correspondingly, payables decreased $2,057 primarily due to cash payments of $2,837 , offset by additional expense accruals as performance obligations are satisfied. Contract costs relate to direct fulfillment costs incurred in advance of the satisfaction of the performance obligation for Development Marketing arrangements. The Company capitalizes costs incurred in fulfilling a contract with a customer if the fulfillment costs 1) relate directly to an existing contract or anticipated contract, 2) generate or enhance resources that will be used to satisfy performance obligations in the future, and 3) are expected to be recovered. These costs are amortized over the estimated customer relationship period consistent with the pattern of transfer of goods or services to its customers. Contract liabilities relate to payments received in advance of the performance obligations being satisfied under the contract for the Real Estate development marketing and are recognized as revenue at the points in time when the Company performs under the contract. Performance obligations related to the Real Estate development marketing contracts are considered satisfied when each unit is closed. Development marketing projects tend to span 4 to 6 years from the time the Company enters into the contract with the developer to the time that all of the sales of the units in a subject property are closed. The timing for sales closings are dependent upon several external factors outside the Company’s control, including but not limited to, economic factors, seller and buyer actions, construction timing and other real estate market factors. Accordingly, all contract liabilities and contract costs associated with development marketing are considered long-term until closing dates for unit sales are scheduled. As of December 31, 2018 , the Company estimates approximately $7,071 of contract liabilities will be recognized as revenue within the next twelve months. Contract liabilities increased by $4,866 during the year ended December 31, 2018 due to $20,385 of advance payments received from customer prior to the satisfaction of performance obligations for Real Estate development marketing contracts, offset by revenue recognized for units sold during the year. Revenue recognized during the current reporting period that was included in the contract liabilities balance at January 1, 2018 was $12,135 . Topic 606 requires an entity to disclose the revenue recognized in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods (for example, due to changes in transaction price). For the year ended December 31, 2018 , there was no |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Information concerning the Company’s common stock has been adjusted to give retroactive effect to the 5% stock dividends distributed to Company stockholders on September 27, 2018 , September 28, 2017 and September 29, 2016. All per share amounts and references to share amounts have been updated to reflect the retrospective effect of the stock dividends. The dividends were recorded at par value of $671 in 2018 , $644 in 2017 and $609 in 2016 , since the Company did not have retained earnings in each of the aforementioned years. In connection with the 5% stock dividends, the Company increased the number of shares subject to outstanding stock options by 5% and reduced the exercise prices accordingly. For purposes of calculating basic earnings per share (“EPS”), net income available to common stockholders attributed to Vector Group Ltd. for the period is reduced by the contingent interest and the non-cash interest expense associated with the discounts created by the beneficial conversion features and embedded derivatives related to the Company’s convertible debt issued. The convertible debt issued by the Company are participating securities due to the contingent interest feature and had no impact on EPS for the years ended December 31, 2018 , 2017 and 2016 as the dividends on the common stock reduced earnings available to common stockholders so there were no unallocated earnings. As discussed in Note 14 , the Company has stock option awards which provide for common stock dividend equivalents at the same rate as paid on the common stock with respect to the shares underlying the unexercised portion of the options. These outstanding options represent participating securities under authoritative guidance. The Company recognizes payments of the dividend equivalent rights ( $8,696 , net of income taxes of $0 , $7,655 , net of income taxes of $0 , and $6,258 , net of income taxes of $435 , for the years ended December 31, 2018 , 2017 and 2016 , respectively) on these options as reductions in additional paid-in-capital on the Company’s consolidated balance sheet. For the years ended December 31, 2018 and 2017 , the Company included the income tax benefit associated with the dividend equivalent rights as a component of income tax expense due to the adoption of ASU 2016-09. As a result, in its calculation of basic EPS for the years ended December 31, 2018 , 2017 and 2016 , respectively, the Company has adjusted its net income for the effect of these participating securities as follows: For the year ended December 31, 2018 2017 2016 Net income attributed to Vector Group Ltd. $ 58,105 $ 84,572 $ 71,127 Income attributable to participating securities (7,016 ) (6,071 ) (2,241 ) Net income available to common stockholders attributed to Vector Group Ltd. $ 51,089 $ 78,501 $ 68,886 Basic EPS is computed by dividing net income available to common stockholders attributed to Vector Group Ltd. by the weighted-average number of shares outstanding, which includes vested restricted stock. Diluted EPS includes the dilutive effect of non-vested restricted stock grants, stock options and convertible securities. Diluted EPS is computed by dividing net income available to common stockholders by the diluted weighted-average number of shares outstanding, which includes dilutive non-vested restricted stock grants, stock options and convertible securities. Basic and diluted EPS were calculated using the following shares for the years ended December 31, 2018 , 2017 and 2016 : For the year ended December 31, 2018 2017 2016 Weighted-average shares for basic EPS 139,392,638 139,035,240 136,745,044 Plus incremental shares related to stock options and non-vested restricted stock 116,707 271,254 251,139 Weighted-average shares for diluted EPS 139,509,345 139,306,494 136,996,183 The following non-vested restricted stock and shares issuable upon the conversion of convertible debt were outstanding during the years ended December 31, 2018 , 2017 and 2016 but were not included in the computation of diluted EPS because the exercise prices of the options and the per share expense associated with the restricted stock were greater than the average market price of the common shares during the respective periods, and the impact of common shares issuable under the convertible debt were anti-dilutive to EPS. Year Ended December 31, 2018 2017 2016 Weighted-average number of shares issuable upon conversion of debt 28,773,728 28,819,626 28,819,626 Weighted-average conversion price $ 16.95 $ 16.96 $ 16.96 |
Investment Securities Available
Investment Securities Available for Sale | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities Available for Sale | INVESTMENT SECURITIES AT FAIR VALUE Investment securities at fair value consisted of the following: December 31, 2018 December 31, 2017 Debt securities available for sale $ 84,367 $ 84,814 Equity securities available for sale — 65,675 Equity securities at fair value 47,202 — Total investment securities at fair value $ 131,569 $ 150,489 Net losses recognized on investment securities were as follows: Year Ended December 31, 2018 2017 2016 Net losses recognized on equity securities (1) $ (8,449 ) $ — $ — Net (losses) gains recognized on debt securities available for sale (34 ) 2 261 Net gains recognized on equity securities available for sale (2) — 167 2,646 Impairments on debt securities available for sale (1,087 ) (390 ) (490 ) Impairments on equity securities available for sale (3) — (75 ) (4,891 ) Gains on long-term investments — 162 190 Impairments of long-term investments — (526 ) (1,203 ) Net losses recognized on investment securities $ (9,570 ) $ (660 ) $ (3,487 ) (1) Includes net losses recognized on equity securities at fair value that were classified as equity securities available for sale prior to the adoption of ASU 2016-01 in 2018 , and net losses recognized on equity securities at fair value that qualify for the NAV practical expedient, that were classified as long-term investments accounted at cost prior to the aforementioned adoption. The latter securities are included in the “Long-term investments” line item on the consolidated balance sheet and are further discussed in Note 7 . (2) Includes net gains recognized on equity securities that were classified as available for sale in 2017 and 2016 . There is no activity for 2018 because the Company adopted ASU 2016-01. (3) Includes impairments on equity securities that were classified as equity securities available for sale in 2017 and 2016 . There is no activity for 2018 because the Company adopted ASU 2016-01. On January 1, 2018, the Company adopted the amendments in ASU 2016-01 which required all equity securities to be measured at fair value with changes in fair value recognized in net income. Therefore, all of the Company’s equity investments that were classified as equity securities available for sale at December 31, 2017 are now classified as equity securities at fair value. These equity securities include marketable equity securities and mutual funds invested in fixed-income securities that had fair values of $44,634 and $21,041 at December 31, 2017, respectively, as shown below. Prior to the adoption of ASU 2016-01, equity securities were measured at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. At December 31, 2017, $9,681 of net unrealized gains related to equity securities had been recognized in AOCI. After the adoption of ASU 2016-01, these unrealized gains and losses were reclassified out of AOCI and into opening stockholders’ deficiency with subsequent changes in fair value being recognized in net income. Proceeds from sales of investment securities totaled $18,628 , $28,761 and $116,070 and proceeds from early redemptions by issuers totaled $26,330 , $103,730 and $20,034 for the years ended December 31, 2018 , 2017 and 2016 , respectively, mainly from sales of Corporate securities and U.S. Government securities. (a) Debt and Equity Securities Available for Sale The components of debt securities available for sale at December 31, 2018 were as follows: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable debt securities $ 84,199 $ 168 $ — $ 84,367 The table below summarizes the maturity dates of debt securities available for sale at December 31, 2018 . Investment Type: Fair Value Under 1 Year 1 Year up to 5 Years More than 5 Years U.S. Government securities $ 28,514 $ 14,929 $ 13,585 $ — Corporate securities 41,733 10,383 31,350 — U.S. mortgage-backed securities 4,369 802 3,567 — Commercial mortgage-backed securities 401 — 401 — Commercial paper 5,870 5,870 — — Index-linked U.S. bonds 2,330 1,569 761 — Foreign fixed-income securities 1,150 650 500 — Total debt securities available for sale by maturity dates $ 84,367 $ 34,203 $ 50,164 $ — The components of debt and equity securities available for sale at December 31, 2017 were as follows: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable equity securities $ 35,020 $ 10,994 $ (1,380 ) $ 44,634 Mutual funds invested in fixed-income securities 20,977 93 (29 ) 21,041 Marketable debt securities 84,708 106 — 84,814 Total debt and equity securities available for sale $ 140,705 $ 11,193 $ (1,409 ) $ 150,489 The available-for-sale investment securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows: In loss position for Less than 12 months 12 months or more Fair Value Unrealized Losses Fair Value Unrealized Losses Total Fair Value Total Unrealized Losses December 31, 2017 Marketable equity securities $ 9,523 $ (1,380 ) $ — $ — $ 9,523 $ (1,380 ) Mutual funds invested in fixed-income securities 10,483 (29 ) — — 10,483 (29 ) $ 20,006 $ (1,409 ) $ — $ — $ 20,006 $ (1,409 ) Unrealized losses from marketable equity securities were due to market price movements. Unrealized losses from mutual funds invested in fixed-income securities were primarily attributable to changes in interest rates. Gross realized gains and losses on debt and equity securities available for sale were as follows: Year Ended December 31, 2018 2017 2016 Gross realized gains on sales $ 4 $ 479 $ 3,408 Gross realized losses on sales (38 ) (310 ) (501 ) Net (losses) gains on sale of debt and equity securities available for sale $ (34 ) $ 169 $ 2,907 Gross realized losses on other-than-temporary impairments $ (1,087 ) $ (465 ) $ (5,381 ) Although management generally does not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing the Company’s investment securities portfolio, management may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements. (b) Equity Securities at Fair Value Equity securities at fair value consisted of the following: December 31, 2018 Marketable equity securities $ 26,010 Mutual funds invested in fixed-income securities 21,192 Total equity securities at fair value $ 47,202 The following is a summary of unrealized and realized net losses recognized in net income on equity securities at fair value after the adoption of ASU 2016-01 for the year ended December 31, 2018 : Year Ended December 31, 2018 Net losses recognized on equity securities (1) $ (8,449 ) Less: Net losses recognized on equity securities sold (808 ) Net unrealized losses recognized on equity securities still held at the reporting date $ (7,641 ) (1) Includes $517 of net losses recognized on equity securities at fair value that qualify for the NAV practical expedient for the year ended December 31, 2018 . These equity securities are included in the “Long-term investments” line item on the consolidated balance sheet and are further discussed in Note 7 . The Company’s marketable equity securities and mutual funds invested in fixed-income securities are classified as Level 1 under the fair value hierarchy disclosed in Note 18 . Their fair values are based on quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets. (c) Equity Securities Without Readily Determinable Fair Values That Do Not Qualify for the NAV Practical Expedient Equity securities without readily determinable fair values that do not qualify for the NAV practical expedient consisted of an investment in the common stock of a reinsurance company at December 31, 2018 . At December 31, 2017 , prior to the adoption of ASU 2016-01 and ASU 2018-03, this investment along with another investment in a residential real estate company, which was sold during 2018 , were classified as cost-method long-term investments and together had a total carrying value of $5,428 . On January 1, 2018, upon the adoption of the new guidance, the Company classified these investments as equity securities without readily determinable fair values that do not qualify for the NAV practical expedient and valued them at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. At December 31, 2018 , the total carrying value of the remaining investment was $5,000 , which was included in “Other assets” on the consolidated balance sheet. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the year ended December 31, 2018 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consist of: December 31, December 31, Leaf tobacco $ 42,917 $ 45,801 Other raw materials 3,750 3,272 Work-in-process 1,931 358 Finished goods 63,937 63,363 Inventories at current cost 112,535 112,794 LIFO adjustments (21,538 ) (23,004 ) $ 90,997 $ 89,790 All of the Company’s inventories as of December 31, 2018 and 2017 have been reported under the LIFO method. The $21,538 LIFO adjustment as of December 31, 2018 decreases the current cost of inventories by $14,932 for Leaf tobacco, $219 for Other raw materials, $25 for Work-in-process, and $6,362 for Finished goods. The $23,004 LIFO adjustment as of December 31, 2017 decreased the current cost of inventories by $16,442 for Leaf tobacco, $123 for Other raw materials, $18 for Work-in-process, and $6,421 for Finished goods. Cost of goods sold was reduced by $567 and $1,333 for the years ended December 31, 2018 and December 31, 2017 , respectively, due to liquidations of LIFO inventories. 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. As of December 31, 2018 , Liggett had tobacco purchase commitments of approximately $19,034 . The Company has a single source supply agreement for reduced ignition propensity cigarette paper through 2019. Each year, the Company capitalizes in inventory that portion of its MSA liability that relates to cigarettes shipped to public warehouses but not sold. The amount of capitalized MSA cost in “Finished goods” inventory was $16,001 and $17,440 as of December 31, 2018 and 2017 , respectively. Federal excise tax in inventory was $26,419 as of December 31, 2018 and $25,151 at December 31, 2017 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of: December 31, December 31, Land and improvements $ 1,624 $ 1,442 Buildings 16,919 16,280 Machinery and equipment 198,649 190,983 Leasehold improvements 51,322 45,760 268,514 254,465 Less accumulated depreciation and amortization (181,778 ) (168,949 ) $ 86,736 $ 85,516 Depreciation and amortization expense related to property, plant and equipment for the years ended December 31, 2018 , 2017 and 2016 was $17,506 , $17,479 and $20,782 , respectively. The Company, through Liggett, had future machinery and equipment purchase commitments of $1,233 at December 31, 2018 |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Investments [Abstract] | |
Long-Term Investments | LONG-TERM INVESTMENTS Long-term investments consisted of the following: December 31, 2018 December 31, 2017 Equity securities at fair value that qualify for the NAV practical expedient $ 54,628 $ — Investments accounted at cost — 65,450 Equity-method investments 11,631 15,841 $ 66,259 $ 81,291 (a) Equity Securities at Fair Value That Qualify for the NAV Practical Expedient The amendments of ASU 2016-01 adopted on January 1, 2018 triggered a change in the accounting classification and accounting treatment of the Company’s long-term investments accounted at cost at December 31, 2017. Under the new guidance, certain investments are now measured at fair value and are classified as equity securities at fair value that qualify for the NAV practical expedient. The Company, using the practical expedient, estimates the fair value of these equity securities within the scope of ASC 820-10-15-4 through 15-5 using the per share NAV, which represents the amount of net assets attributable to each share of capital stock outstanding at the close of the period. These investments qualify for the NAV practical expedient because they do not have readily determinable fair values and are investment companies within the scope of Topic 946. The adoption of the guidance as it relates to these investments resulted in a cumulative-effect adjustment that increased opening stockholders’ deficiency by $8,838 . The Company’s equity securities at fair value that qualify for the NAV practical expedient are classified as Level 2 under the fair value hierarchy disclosed in Note 18 because they are measured at NAV per share. The estimated fair value of these investments was provided by the partnerships based on the indicated market values of the underlying assets or investment portfolio. The investments in these investment partnerships are illiquid and the ultimate realization of these investments is subject to the performance of the underlying partnership and its management by the general partners. The Company redeemed two of its investments that qualify for the NAV practical expedient and redeemed 50% of another investment during the year ended December 31, 2018 . The Company received cash distributions of $13,952 related to these redemptions during the fourth quarter 2018. The Company classified these distributions as investing cash inflows. The Company classified $5,000 of the 2017 long-term investment balance of $65,450 as equity securities without readily determinable fair values that do not qualify for the NAV practical expedient. Refer to Note 4 for disclosures related to this investment. (b) Cost-Method Investments: Long-term investments accounted at cost consisted of the following: December 31, 2017 Carrying Value Fair Value Investment partnerships $ 65,450 $ 74,111 $ 65,450 $ 74,111 The principal business of the investment partnerships is investing in investment securities. The estimated fair value of the investment partnerships was provided by the partnerships based on the indicated market values of the underlying assets or investment portfolio. The investments in these investment partnerships are illiquid and the ultimate realization of these investments is subject to the performance of the underlying partnership and its management by the general partners. The Company has accounted for these investments using the cost method of accounting because the investments did not meet the requirements for equity-method accounting. The Company invested $30,000 in six new investments and made an additional contribution of $1,500 to three of its existing investments in 2017 . The Company received cash distributions of $1,163 and $4,741 from limited partnerships in 2017 and 2016 , respectively. The long-term investments were carried on the consolidated balance sheet at cost at December 31, 2017 . The fair value determination disclosed above would be classified as Level 3 under fair value hierarchy disclosed in Note 18 if such assets were recorded on the consolidated balance sheet at fair value. The fair value determinations disclosed above were based on company assumptions, and information obtained from the partnerships based on the indicated market values of the underlying assets of their investment portfolio. (c) Equity-Method Investments: Equity-method investments consisted of the following: December 31, 2018 December 31, 2017 Indian Creek Investors LP (“Indian Creek”) $ 1,167 $ 4,498 Boyar Value Fund (“Boyar”) 8,384 9,026 Ladenburg Thalmann Financial Services Inc. (“LTS”) 2,080 2,317 Castle Brands, Inc. (“Castle”) — — $ 11,631 $ 15,841 At December 31, 2018 , the Company’s ownership percentages in Indian Creek, Boyar, LTS and Castle were 12.61% , 34.27% , 10.36% and 7.66% , respectively. The Company accounted for its Indian Creek and Boyar interests as equity-method investments because the Company’s ownership percentage meets the threshold for equity-method accounting. The Company accounted for its LTS and Castle interests as equity-method investments because the Company has the ability to exercise significant influence over their operating and financial policies. The fair value of the investment in Boyar, based on the quoted market price as of December 31, 2018 , was $8,384 , equal to its carrying value. At December 31, 2018 , the aggregate fair values of the LTS and Castle investments, based on the quoted market price, were $35,396 and $10,961 , respectively. The difference between the amount at which the LTS and Castle investments are carried and the fair value of such investment which correspond to its share in underlying equity in net assets was $27,167 and $695 , respectively. The Company received cash distributions of $7,007 , $1,239 and $1,158 from the Company’s equity-method investments in 2018 , 2017 and 2016 , respectively. Of the $7,007 , $5,535 were classified as investing cash inflows received on the 50% redemption of the Company’s investment in Indian Creek and the remaining $1,472 were classified as operating cash inflows received during the year ended December 31, 2018 . The 2017 and 2016 cash distributions were classified as operating cash inflows. The Company recognized equity in earnings from equity-method investments of $3,158 for the year ended December 31, 2018 , and equity in losses from equity-method investments of $765 and $2,754 for the years ended December 31, 2017 and 2016 , respectively. The Company has suspended its recognition of equity in losses in Castle to the extent such losses exceed its basis. If it is determined that an other-than-temporary decline in fair value exists in equity-method investments, the Company records an impairment charge with respect to such investment in its consolidated statements of operations. The Company will continue to perform additional assessments to determine the impact, if any, on the Company’s consolidated financial statements. Thus, future impairment charges may occur. The equity-method investments are carried on the consolidated balance sheet at cost under the equity method of accounting. The fair values disclosed for Boyar, LTS and Castle would be classified as Level 1 under the fair value hierarchy disclosed in Note 18 if such assets were recorded on the consolidated balance sheet at fair value. The fair values are based on quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets. The fair value determination disclosed above for Indian Creek would be classified as Level 2 under the fair value hierarchy disclosed in Note 18 if it were recorded on the consolidated balance sheet at fair value. The estimated fair value of the Company’s investment represents the NAV per share and was provided by the partnership based on the indicated market value of the underlying assets or investment portfolio. The investment is illiquid and its ultimate realization is subject to the performance of the underlying partnership and its management by the general partners. (d) Combined Financial Statements for Unconsolidated Subsidiaries Accounted for on Equity Method Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for Indian Creek and Boyar. December 31, December 31, Investment securities $ 33,830 $ 48,050 Cash and cash equivalents 521 1,719 Other assets 33 74 Total assets $ 34,384 $ 49,843 Other liabilities $ 738 $ 3,007 Total liabilities 738 3,007 Partners’ capital 33,646 46,836 Total liabilities and partners’ capital $ 34,384 $ 49,843 Year Ended December 31, 2018 2017 2016 Investment income $ 549 $ 792 $ 438 Expenses 861 690 684 Net investment (loss) gain (312 ) 102 (246 ) Total net realized (loss) gain and net change in unrealized depreciation from investments (5,781 ) 100 3,341 Net (decrease) increase in partners’ capital resulting from operations $ (6,093 ) $ 202 $ 3,095 Pursuant to Rule 4-08(g), the following summarized financial data is presented for LTS. The Company accounts for its investment in LTS using a three-month lag reporting period. September 30, September 30, Cash and cash equivalents $ 262,834 $ 100,739 Receivables from clearing brokers, note receivable and other receivable, net 165,149 139,497 Goodwill and intangible assets, net 200,199 233,007 Other assets 172,409 79,372 Total assets $ 800,591 $ 552,615 Accrued compensation, commissions and fees payable $ 141,260 $ 90,991 Accounts payable and accrued liabilities 50,122 42,895 Notes payable, net of $115 and $535 unamortized discount in 2018 and 2017, respectively 185,199 28,182 Other liabilities 37,658 31,718 Total liabilities 414,239 193,786 Preferred stock 2 2 Common stock 20 20 Additional paid-in capital 487,752 515,208 Accumulated deficit (101,467 ) (156,423 ) Total controlling shareholders’ equity 386,307 358,807 Non-controlling interest 45 22 Total shareholders’ equity 386,352 358,829 Total liabilities and shareholders’ equity $ 800,591 $ 552,615 (1) The table above presents the nature and amounts of the major components of assets and liabilities, along with information regarding redeemable stock and non-controlling interest. Twelve Months Ended September 30, 2018 2017 2016 Revenues $ 1,380,031 $ 1,221,195 $ 1,104,227 Expenses 1,345,768 1,217,331 1,119,366 Income (loss) before other items 34,263 3,864 (15,139 ) Change in fair value of contingent consideration (232 ) 48 (154 ) Income (loss) from continuing operations 34,031 3,912 (15,293 ) Net income (loss) $ 30,858 $ 1,669 $ (25,159 ) Pursuant to Rule 4-08(g), the following summarized financial data is presented for Castle. The Company accounts for its investment in Castle using a three-month lag reporting period. September 30, September 30, Current assets $ 57,047 $ 49,328 Non-current assets 8,359 8,783 Total assets $ 65,406 $ 58,111 Current liabilities $ 13,440 $ 17,586 Non-current liabilities 42,892 35,296 Total liabilities 56,332 52,882 Total controlling shareholders’ equity 4,907 2,386 Non-controlling interest 4,167 2,843 Total shareholders’ equity 9,074 5,229 Total liabilities and shareholders’ equity $ 65,406 $ 58,111 Twelve Months Ended September 30, 2018 2017 2016 Revenues $ 94,567 $ 82,636 $ 73,549 Expenses 57,083 48,257 44,236 Gross profit 37,484 34,379 29,313 Other expenses 32,769 31,404 28,338 Income from continuing operations 4,715 2,975 975 Net income (loss) $ 546 $ 1,008 $ (1,263 ) |
New Valley LLC
New Valley LLC | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
New Valley LLC | NEW VALLEY LLC Douglas Elliman Acquisition. On December 31, 2018 , New Valley purchased the remaining 29.41% interest in Douglas Elliman for a total purchase price of $40,000 , in the form of $10,000 in cash and $30,000 in notes payable. Non-cash consideration was also provided in the form of a contingent liability, with an assigned fair value as of the purchase date of $6,304 . The notes payable are due in twelve equal quarterly installments beginning January 1, 2020, with interest equal to the mid-term applicable federal rate (“AFR”) as of each payment date. The transaction increased New Valley’s indirect ownership interest in Douglas Elliman to 100% from 70.59% . As the transaction represented the purchase of a non-controlling interest with no change of control, no gain or loss was recognized in the Company's consolidated statement of operations, and the Company did not step up a portion of the subsidiary's net assets to fair value. The carrying amount of the non-controlling interest was adjusted by $73,953 to reflect the ownership interest change, and the difference between the fair value of the consideration transferred and the amount by which the non-controlling interest was adjusted, in the amount of $28,800 , was recorded in “ Accumulated deficit ” on December 31, 2018 . For the years ended December 31, 2018 , 2017 and 2016 , Douglas Elliman had pretax net income on a stand-alone basis of $5,197 , $21,358 and $21,068 , respectively. The Company allocated a portion of this net income, or $1,528 , $6,281 and $6,196 to non-controlling interest for the years ended December 31, 2018 , 2017 and 2016 , respectively. The cumulative balance allocated to non-controlling interests in Douglas Elliman was $73,953 and $78,384 at December 31, 2018 and 2017 , respectively. As this purchase occurred at the end of the fiscal year, there is no additional income attributable to the change in ownership in these consolidated financial statements for the year ended December 31, 2018 . (a) Investments in real estate ventures . New Valley also holds equity investments in various real estate projects domestically and internationally. The majority of New Valley’s investment in real estate ventures were located in the New York City Standard Metropolitan Statistical Area (“SMSA”). New Valley aggregated the disclosure of its investments in real estate ventures by property type and operating characteristics. The components of “Investments in real estate ventures” were as follows: Range of Ownership December 31, 2018 December 31, 2017 Condominium and Mixed Use Development: New York City SMSA 3.1% - 49.5% $ 65,007 (1) $ 96,386 All other U.S. areas 15.0% - 48.5% 31,392 28,763 96,399 125,149 Apartment Buildings: New York City SMSA 45.4% — (2) 10,910 All other U.S. areas 7.6% - 16.3% — 257 — 11,167 Hotels: New York City SMSA 5.2% - 18.4% 15,782 (1) 19,616 International 49.0% 2,334 2,800 18,116 22,416 Commercial: New York City SMSA 49.0% 1,867 2,437 All other U.S. areas 1.6% 7,053 15,642 8,920 18,079 Other 15.0% - 50.0% 17,670 (2) 11,320 Investments in real estate ventures $ 141,105 $ 188,131 _____________________________ (1) One New York City SMSA venture, with a carrying value of $267 , was reclassified from Condominium and Mixed Use Development to Hotels as of December 31, 2018 . (2) One New York City SMSA venture, with a carrying value of $1,783 , was reclassified from Apartment Buildings to Other as of December 31, 2018 . Contributions New Valley made contributions to its investments in real estate ventures as follows: December 31, 2018 December 31, 2017 Condominium and Mixed Use Development: New York City SMSA $ 4,135 $ 11,465 All other U.S. areas — 8,596 4,135 20,061 Apartment Buildings: New York City SMSA 975 — 975 — Hotels: New York City SMSA 168 3,068 168 3,068 Commercial: All other U.S. areas — 5,753 — 5,753 Other 4,450 9,925 Total contributions $ 9,728 $ 38,807 During the years ended December 31, 2018 and December 31, 2017 , New Valley did not make certain capital contributions to Monad Terrace, a Condominium and Mixed Use Development located in All other U.S. areas. The Company’s ownership percentage remained at 18% for the year ended December 31, 2018 and was reduced from 24% to 18% for the year ended December 31, 2017 . For other ventures where New Valley previously held an investment, New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners during the years ended December 31, 2018 and December 31, 2017 . New Valley’s direct investment percentage for these ventures did not change. Distributions New Valley received distributions from its investments in real estate ventures as follows: December 31, 2018 December 31, 2017 Condominium and Mixed Use Development: New York City SMSA $ 39,207 $ 68,600 All other U.S. areas — 20,859 39,207 89,459 Apartment Buildings: New York City SMSA 27,569 — All other U.S. areas 422 7,498 27,991 7,498 Hotels: New York City SMSA 1,542 — International 220 468 1,762 468 Commercial: New York City SMSA 9 111 All other U.S. areas 10,139 514 10,148 625 Other 1,060 1,663 Total distributions $ 80,168 $ 99,713 Of the distributions received by New Valley from its investment in real estate ventures, $25,935 and $37,995 were from distributions of earnings and $54,233 and $61,718 were a return of capital for the years ended December 31, 2018 and December 31, 2017 , respectively. Equity in Earnings (Losses) from Real Estate Ventures New Valley recognized equity in earnings (losses) from real estate ventures as follows: Year Ended December 31, 2018 2017 2016 Condominium and Mixed Use Development: New York City SMSA $ (923 ) $ 35,578 $ 7,432 All other U.S. areas (1,063 ) (2,063 ) (1,793 ) (1,986 ) 33,515 5,639 Apartment Buildings: New York City SMSA 17,467 (6,703 ) — All other U.S. areas 164 (532 ) 1,588 17,631 (7,235 ) 1,588 Hotels: New York City SMSA (2,727 ) (5,347 ) (1,884 ) International (246 ) 232 439 (2,973 ) (5,115 ) (1,445 ) Commercial: New York City SMSA (562 ) (742 ) (1,644 ) All other U.S. areas 1,608 403 — 1,046 (339 ) (1,644 ) Other 728 569 1,062 Total equity in earnings from real estate ventures $ 14,446 $ 21,395 5,200 During the fourth quarter of 2018 , the Company’s New York City SMSA Apartment Building venture sold a building. The Company recognized equity in earnings from the venture of $17,467 for the year ended December 31, 2018 , and equity in losses of $6,701 and $242 for the years ended December 31, 2017 and 2016 , respectively. The Company received cash distributions of $27,569 from the venture for the year ended December 31, 2018 . The Company did not receive any cash distributions from the venture in 2017 . As of December 31, 2018 , the venture owned a parcel of land adjacent to the building sold and had a carrying value of $1,783 . As part of the Company’s ongoing assessment of the carrying values of its investments in real estate ventures, the Company determined that the fair value of a New York City SMSA Condominium and Mixed Used Development was less than its carrying value as of December 31, 2018 . The Company determined that the impairment was other than temporary. The Company recorded an impairment charge as a component of equity in losses from real estate ventures of $10,174 of which $8,467 was attributed to the Company for the year ended December 31, 2018 . The Company recognized equity in losses from this venture of $10,400 , inclusive of the $10,174 impairment charge above, and $481 for the years ended December 31, 2018 and 2017 , respectively, and equity in earnings of $59 for the year ended December 31, 2016 . The Company did not receive cash distributions from the venture for the years ended December 31, 2018 and 2017 , and had a carrying value of zero at December 31, 2018 . During the Company’s 2017 assessment of carrying value of its investment in real estate ventures, the Company had determined that a New York City SMSA Hotel venture was less than its carrying value as of December 31, 2017 . The Company determined that the impairment was other than temporary and recorded an impairment charge of $2,862 for the year ended December 31, 2017 . Investment in Real Estate Ventures Entered Into During 2018 In September 2018, New Valley invested $790 for an approximate 49% interest in Witkoff EB-5 Capital Partners, categorized in Other. The purpose of the joint venture is to invest in various investments in connection with the Winthrop/Witkoff Co-Investment fund. New Valley accounts for this investment under the equity method of accounting. New Valley’s maximum exposure to loss as a result of its investment in Witkoff EB-5 Capital Partners was $9,595 as of December 31, 2018 . VIE Consideration It was determined that New Valley is the primary beneficiary of two ventures as New Valley controls the activities that most significantly impact economic performance of the entities. Therefore, New Valley consolidates these VIEs. The carrying amount of the consolidated VIEs’ assets were $1,387 and $14,548 for the years ended December 31, 2018 and 2017 , respectively. Those assets are owned by the VIEs, not the Company. Neither of the consolidated VIEs had non-recourse liabilities as of December 31, 2018 and 2017 . A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes and other debts payable. For the remaining investments in real estate ventures, New Valley determined that the entities were VIEs but New Valley was not the primary beneficiary. Maximum Exposure to Loss New Valley’s maximum exposure to loss was as follows: December 31, 2018 Condominium and Mixed Use Development: New York City SMSA $ 69,724 All other U.S. areas 43,891 113,615 Hotels: New York City SMSA 15,782 International 2,334 18,116 Commercial: New York City SMSA 1,867 All other U.S. areas 7,053 8,920 Other 32,648 Total maximum exposure to loss $ 173,299 New Valley capitalized $8,580 and $6,385 into the carrying value of its ventures whose projects were currently under development during the years ended December 31, 2018 and December 31, 2017 , respectively. Douglas Elliman has been engaged by the developers as the sole broker or the co-broker for several of the real estate development projects that New Valley owns an interest in through its real estate venture investments. Douglas Elliman had gross commissions of approximately $20,118 , $10,888 and $15,078 from these projects for the years ended December 31, 2018 , 2017 and 2016 , respectively. (b) Combined Financial Statements for Unconsolidated Subsidiaries Accounted for on Equity Method: Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for the following: 1 QPS Tower, 10 Madison Square West, Other Condominium and Mixed Use Development, Apartment Buildings, Hotels, Commercial and Other. The equity in earnings in 1 QPS Tower and Greenwich for the year ended December 31, 2018 were significant enough to warrant separate disclosure. 10 Madison Square West for the year ended December 31, 2017 was significant enough to warrant separate disclosure. 10 Madison Square West: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 28,539 $ 197,157 $ 467,755 Cost of goods sold 24,250 116,120 248,917 Other expenses (4,236 ) 11,649 28,784 Income from continuing operations $ 8,525 $ 69,388 $ 190,054 December 31, December 31, Balance Sheets Investment in real estate $ 2,369 $ 7,908 Total assets 15,071 32,929 Total debt 3,319 30,006 Total liabilities 3,616 30,006 Non-controlling interest 10,091 2,575 1 QPS Tower: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 14,625 $ 4,216 $ (15 ) Other expenses 26,357 18,508 518 Loss from continuing operations $ (11,732 ) $ (14,292 ) $ (533 ) December 31, December 31, Balance Sheets Investment in real estate $ 215,956 $ 217,926 Total assets 220,350 229,825 Total debt 209,602 206,413 Total liabilities 212,640 211,631 Greenwich: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 28 $ (768 ) $ 815 Other expenses 146,286 2,696 2,727 Loss from continuing operations $ (146,258 ) $ (3,464 ) $ (1,912 ) December 31, December 31, Balance Sheets Investment in real estate $ 403,815 $ 374,307 Total assets 419,518 376,684 Total debt 408,779 246,244 Total liabilities 445,514 270,322 Non-controlling interest (19,064 ) 77,998 Other Condominium and Mixed Use Development: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 365,890 $ 176,306 $ 44,089 Cost of goods sold 71,623 93,766 54,103 Other expenses 44,211 47,590 13,782 Income (loss) from continuing operations $ 250,056 $ 34,950 $ (23,796 ) December 31, December 31, Balance Sheets Investment in real estate $ 2,541,994 $ 3,720,332 Total assets 2,701,652 4,178,725 Total debt 1,798,296 2,806,648 Total liabilities 2,036,431 3,028,789 Non-controlling interest 150,897 472,459 Apartment Buildings: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 44,366 $ 66,588 $ 87,225 Other expenses 105,899 64,431 83,117 (Loss) income from continuing operations $ (61,533 ) $ 2,157 $ 4,108 December 31, December 31, Balance Sheets Investment in real estate $ 558,268 $ 493,178 Total assets 574,664 507,684 Total debt 412,447 422,055 Total liabilities 420,164 639,809 Non-controlling interest 115,952 58,700 Hotels: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 171,949 $ 75,862 $ 81,517 Cost of goods sold 4,522 4,035 4,262 Other expenses 268,007 112,124 114,582 Loss from continuing operations $ (100,580 ) $ (40,297 ) $ (37,327 ) December 31, December 31, Balance Sheets Investment in real estate $ 1,019,133 $ 776,577 Total assets 1,126,598 865,070 Total debt 696,200 491,200 Total liabilities 736,101 512,252 Non-controlling interest 348,451 319,322 Commercial: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 56,773 $ 6,636 $ 8,410 Other expenses 11,647 3,294 11,195 Income (loss) from continuing operations $ 45,126 $ 3,342 $ (2,785 ) December 31, December 31, Balance Sheets Investment in real estate $ 53,193 $ 53,586 Total assets 70,395 75,289 Total debt 55,625 55,625 Total liabilities 54,645 54,524 Other: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 4,823 $ 3,442 $ 3,344 Other expenses 6,382 5,069 1,227 (Loss) income from continuing operations $ (1,559 ) $ (1,627 ) $ 2,117 December 31, December 31, Balance Sheets Investment in real estate $ 710,549 $ 824,745 Total assets 1,152,124 894,982 Total debt 658,592 470,000 Total liabilities 665,463 471,964 Non-controlling interest 392,933 356,632 (c) Guarantees and Commitments: The joint venture agreements through which New Valley invests in real estate ventures set forth certain conditions where New Valley or its affiliate may be required to contribute payments towards the satisfaction of liabilities of the other partners in the joint venture, or to otherwise indemnify other partners. Mostly, these contribution/indemnity requirements are triggered in the event New Valley or its affiliate commits an act that results in liability of another partner under a guarantee that the other partner has given to a lender in connection with a loan. The guarantees given in connection with the loans may include non-recourse carve-out, environmental, carry and/or completion guarantees, depending on the specific project. In some instances, New Valley or its affiliate would be proportionately liable in the event of liability under a guarantee that is not the fault of any of the partners in the joint venture. In very limited circumstances, New Valley has agreed to be a guarantor directly in connection with a loan. As of December 31, 2018 and 2017 , these contribution/indemnity obligations and guarantees were not material to the Company. The Company believes that as of December 31, 2018 , in the event New Valley becomes legally obligated to contribute funds or otherwise indemnify another partner due to a triggering event under a guarantee, or becomes legally obligated as a guarantor (in the limited circumstances where New Valley is a direct guarantor under the loan documents), the real estate underlying the applicable project is expected to be sufficient to largely repay any guaranteed obligation (although a lender need not necessarily resort to foreclosing on the real estate before seeking recourse under a loan guarantee). In one of New Valley’s projects, New Valley and its partner have guaranteed approximately $12,500 of a construction loan. The guarantee is automatically reduced for all additional capital contributions New Valley and its partner contribute to the venture, and for any additional equity raised for the project. In another project, New Valley has executed limited recourse guarantees with a maximum exposure to New Valley of approximately $5,410 . (d) Investments in real estate, net: The components of “Investments in real estate, net” were as follows: December 31, December 31, Escena, net $ 10,170 $ 10,485 Sagaponack 16,050 13,467 Investment in real estate, net $ 26,220 $ 23,952 Escena. In March 2008, a wholly owned subsidiary of New Valley purchased a loan collateralized by a substantial portion of a 450 -acre approved master planned community in Palm Springs, California known as “Escena.” In April 2009, New Valley completed the foreclosure process and took title to the collateral. The project consists of 667 residential lots with site and public infrastructure, an 18 -hole golf course, a completed clubhouse, and a seven -acre site approved for a 450 -room hotel. The assets have been classified as an “Investments in real estate, net” on the Company’s consolidated balance sheet and the components are as follows: December 31, December 31, Land and land improvements $ 8,910 $ 8,907 Building and building improvements 1,900 1,891 Other 2,162 2,111 12,972 12,909 Less accumulated depreciation (2,802 ) (2,424 ) $ 10,170 $ 10,485 The Company recorded an operating loss of $576 , $868 and $899 for the years ended December 31, 2018 , 2017 and 2016 , respectively, from Escena. Investment in Sagaponack. In April 2015, New Valley invested $12,502 in a residential real estate project located in Sagaponack, NY. The project is wholly owned and the balances of the project are included in the consolidated financial statements of the Company. As of December 31, 2018 , the assets of Sagaponack consist of land and land improvements of $16,050 . Real Estate Market Conditions. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The components of Goodwill and other intangible assets, net were as follows: December 31, December 31, Goodwill $ 77,568 $ 77,059 Indefinite life intangibles: Intangible asset associated with benefit under the MSA 107,511 107,511 Trademark - Douglas Elliman 80,000 80,000 Intangibles with a finite life, net 1,532 3,138 Total goodwill and other intangible assets, net $ 266,611 $ 267,708 Goodwill is evaluated for impairment annually or whenever we identify certain triggering events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Events or circumstances that might indicate an interim evaluation is warranted include, among other things, unexpected adverse business conditions, macro and reporting unit specific economic factors (for example, interest rate and foreign exchange rate fluctuations, and loss of key personnel), supply costs, unanticipated competitive activities, and acts by governments and courts. The Company follows ASC 350, Intangibles -- Goodwill and Other, included in ASU 2011-08, Testing Goodwill for Impairment. The Company elected to bypass the qualitative assessment and perform the quantitative assessment for the year ended December 31, 2018 . No impairment was indicated as a result of this testing. Other intangible assets and contract liabilities assumed were as follows: Useful Lives in Years December 31, December 31, Intangible asset associated with benefit under the MSA Indefinite $ 107,511 $ 107,511 Trademark - Douglas Elliman Indefinite 80,000 80,000 Favorable leases 1 - 10 13,444 13,444 Other intangibles 1 - 5 1,724 6,999 15,168 20,443 Less: Accumulated amortization on amortizable intangibles (13,636 ) (17,305 ) Other intangibles, net $ 1,532 $ 3,138 Contract liabilities assumed: Unfavorable leases 1 - 10 $ 4,022 $ 4,022 Less: Accumulated amortization on unfavorable leases (3,076 ) (2,706 ) Unfavorable leases, net $ 946 $ 1,316 The intangible asset associated with the benefit under the MSA relates to the market share payment exemption of The Medallion Company Inc. (now known as Vector Tobacco Inc.), acquired in April 2002, under the MSA, which states payments under the MSA continue in perpetuity. As a result, the Company believes it will realize the benefit of the exemption for the foreseeable future. The fair value of the intangible asset associated with the benefit under the MSA is calculated using discounted cash flows. This approach involves two steps: (i) estimating future cash savings due to the payment exemption under the MSA and (ii) and discounting the resulting cash flow savings to determine fair value. This fair value is then compared with the carrying value of the intangible asset associated with the benefit under the MSA. To the extent that the carrying amount exceeds the implied fair value of the intangible asset, an impairment loss is recognized. The Company performed its impairment test for the year ended December 31, 2018 and no impairment was noted. The trademark intangible is attributed to the acquisition of the Douglas Elliman brand name which the Company plans to continue using for the foreseeable future. The fair value of the intangible asset associated with the Douglas Elliman trademark is calculated using a “relief from royalty payments” method. This approach involves two steps: (i) estimating reasonable royalty rates for its trademark associated with the Douglas Elliman trademark and (ii) applying these royalty rates to a net sales stream and discounting the resulting cash flows to determine fair value. This fair value is then compared with the carrying value of the trademark. The Company performed the quantitative assessment for the year ended December 31, 2018 and no impairment was noted. The fair value of the other intangibles with finite lives includes favorable leases arising from leases with terms that are less than market value assumed in the business combination. Other intangibles with finite lives also includes backlog and listing inventory for Development sales. The unfavorable leases were from lease terms that exceeded market and gave rise to a liability that were assumed in the business combination. The unfavorable leases are grouped with long-term Other liabilities. Amortization of other intangibles was $806 and $871 for the years ended December 31, 2018 and 2017 , respectively. For the years ended December 31, 2018 and December 31, 2017 , respectively $1,175 and $1,373 were taken as rent expense for amortization of favorable leases and $369 and $502 were taken as offsets to rent expense for amortization of unfavorable leases. Amortization expense is estimated to be $71 , $37 , $82 , $20 and $3 during the years ended December 31, 2019 through 2021, December 31, 2023 and thereafter, respectively, and amortization income from unfavorable lease contracts of $30 |
Notes Payable, Long-Term Debt a
Notes Payable, Long-Term Debt and Other Obligations | 12 Months Ended |
Dec. 31, 2018 | |
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: December 31, 2018 December 31, 2017 Vector: 6.125% Senior Secured Notes due 2025 $ 850,000 $ 850,000 10.5% Senior Notes due 2026 325,000 — 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $29,465 and $53,687* 202,535 205,063 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $3,359 and $69,253* 226,641 160,747 Liggett: Revolving credit facility 28,381 31,614 Term loan under credit facility 2,409 2,704 Equipment loans 1,039 2,662 Other 30,440 752 Total notes payable, long-term debt and other obligations 1,666,445 1,253,542 Less: Debt issuance costs (23,614 ) (25,478 ) Total notes payable, long-term debt and other obligations 1,642,831 1,228,064 Less: Current maturities (256,134 ) (33,820 ) Amount due after one year $ 1,386,697 $ 1,194,244 _____________________________ * The fair value of the derivatives embedded within the 5.5% Variable Interest Senior Convertible Debentures ( $24,789 at December 31, 2018 and $45,249 at December 31, 2017 , respectively) and the 7.5% Variable Interest Senior Convertible Debentures ( $6,635 at December 31, 2018 and $31,164 at December 31, 2017 , respectively) is separately classified as a derivative liability in the consolidated balance sheets. Senior Notes - Vector : 7.75% Senior Secured Notes due 2021: In February 2013, the Company issued $450,000 of its 7.75% Senior Secured Notes due 2021. The aggregate net proceeds from the issuance of the 7.75% Senior Secured Notes due 2021 were approximately $438,250 after deducting offering expenses. On April 15, 2014, the Company completed the sale of an additional $150,000 principal amount of its 7.75% Senior Secured Notes due 2021 for a price of 106.75% . The Company received net proceeds of approximately $158,670 after deducting underwriting discounts, commissions, fees and offering expenses. On May 9, 2016, the Company completed the sale of an additional $235,000 principal amount of its 7.75% Senior Secured Notes due 2021 for a price of 103.5% . The Company received net proceeds of approximately $236,900 after deducting underwriting discounts, commissions, fees and offering expenses. The 7.75% Senior Secured Notes due 2021 paid interest on a semi-annual basis at a rate of 7.75% per year and had a maturity date of February 15, 2021. The 7.75% Senior Secured Notes due 2021 were guaranteed subject to certain customary automatic release provisions on a joint and several basis by all of the 100% owned domestic subsidiaries of the Company that are engaged in the conduct of the Company’s cigarette businesses. (See Note 21 .) In addition, some of the guarantees were collateralized by second priority or first priority security interests in certain collateral of some of the subsidiary guarantors, including their common stock, pursuant to security and pledge agreements. On January 27, 2017, the Company completed the sale of $850,000 of its 6.125% Senior Secured Notes due 2025. The Company used the net cash proceeds from the offering of its 6.125% Senior Secured Notes due 2025, together with the proceeds of the concurrent sale of 2,205,000 shares of its common stock, to redeem all of the Company’s outstanding 7.75% Senior Secured Notes due 2021 and to satisfy and discharge the indenture governing the existing 7.75% Senior Secured Notes due 2021. 6.125% Senior Secured Notes due 2025: On January 27, 2017, the Company sold $850,000 of its 6.125% Senior Secured Notes due 2025 in a private offering to qualified institutional investors in accordance with Rule 144A of the Securities Act of 1933. The aggregate net proceeds from the sale of the 6.125% Senior Secured Notes due 2025 were approximately $831,100 after deducting underwriting discounts, commissions, fees and offering expenses. As discussed above, the Company used the net cash proceeds from the issuance of its 6.125% Senior Secured Notes due 2025, together with the proceeds of the concurrent sale of 2,205,000 of its common shares, to redeem all of the Company’s outstanding 7.75% Senior Secured Notes due 2021 and to satisfy and discharge the indenture governing the existing 7.75% Senior Secured Notes due 2021. The Company accounted for the redeemed $835,000 of the 7.75% Senior Secured Notes due 2021 as an extinguishment of debt. The 6.125% Senior Secured Notes due 2025 pay interest on a semi-annual basis at a rate of 6.125% per year and mature on February 1, 2025. Prior to February 1, 2020, the Company may redeem some or all of the 6.125% Senior Secured Notes due 2025 at any time at a make-whole redemption price, and thereafter, the Company may redeem some or all of the 6.125% Senior Secured Notes due 2025 at a premium that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In the event of a change of control, as defined in the indenture governing the 6.125% Senior Secured Notes due 2025, each holder of the 6.125% Senior Secured Notes due 2025 may require the Company to repurchase some or all of its 6.125% Senior Secured Notes due 2025 at a repurchase price equal to 101% of their aggregate principal amount plus accrued and unpaid interest, if any, to the date of purchase. If the Company sells certain assets and does not apply the proceeds as required pursuant to the indenture, it must offer to repurchase the 6.125% Senior Secured Notes due 2025 at the prices listed in the indenture. The 6.125% Senior Secured Notes due 2025 are guaranteed subject to certain customary automatic release provisions on a joint and several basis by all of the wholly-owned domestic subsidiaries of the Company that are engaged in the conduct of the Company’s cigarette businesses. (See Note 21 .) In addition, some of the guarantees are collateralized by first priority or second priority security interests in certain assets of some of the subsidiary guarantors, including their common stock, pursuant to security and pledge agreements. The indenture 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 . 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. The Company’s Leverage Ratio is defined in the indenture as the ratio of the Company’s and the guaranteeing subsidiaries’ total debt less the fair market value of the Company’s cash, investments in marketable securities and long-term investments to Consolidated EBITDA, as defined in the indenture. The Company’s Secured Leverage Ratio is defined in the indenture in the same manner as the Leverage Ratio, except that secured indebtedness is substituted for indebtedness. As of December 31, 2018 , the Company was in compliance with all debt covenants. 10.5% Senior Notes due 2026: On November 2, 2018, the Company completed the sale of $325,000 of its 10.5% Senior Notes due 2026 (“ 10.5% Senior Notes”) in a private offering that is exempt from registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), to qualified institutional buyers in accordance with Rule 144A of the Securities Act. There are no registration rights associated with the notes, and the Company does not intend to offer notes registered under the Securities Act in exchange for the 10.5% Senior Notes or file a registration statement with respect to the 10.5% Senior Notes. The aggregate net proceeds from the sale of the 10.5% Senior Notes were approximately $315,000 after deducting underwriting discounts, commissions, fees and offering expenses. The Company will pay cash interest at a rate of 10.5% per year, payable semi-annually on May 1 and November 1 of each year, beginning on May 1, 2019. Interest will accrue from November 2, 2018. The 10.5% Senior Notes mature on November 1, 2026. Interest on overdue principal and interest, if any, will accrue at a rate that is 1% higher than the then applicable interest rate on the 10.5% Senior Notes. The Company will make each interest payment to the holders of record on the immediately preceding April 15 and October 15. The Company may redeem some or all of the 10.5% Senior Notes at any time prior to November 1, 2021 at a make-whole redemption price. On or after November 1, 2021, the Company may redeem some or all of the 10.5% Senior Notes at redemption prices set forth in the indenture, plus accrued and unpaid interest, if any, to the redemption date. In addition, any time prior to November 1, 2021, the Company may redeem up to 40% of the aggregate outstanding amount of the 10.5% Senior Notes with the net proceeds of certain equity offerings at 110.5% of the aggregate principal amount of the 10.5% Senior Notes, plus accrued and unpaid interest, if any, to the redemption date, if at least 60% of the aggregate principal amount of the 10.5% Senior Notes originally issued remains outstanding after such redemption, and the redemption occurs within 90 of the closing of such equity offering. In the event of a change of control, as defined in the indenture, each holder of the 10.5% Senior Notes will have the right to require the Company to make an offer to repurchase some or all of its 10.5% Senior Notes at a repurchase price equal to 101% of the aggregate principal amount of the 10.5% Senior Notes plus accrued and unpaid interest to the date of purchase. If the Company sells certain assets and does not apply the proceeds as required pursuant to the indenture, it must offer to repurchase the 10.5% Senior Notes at the prices listed in the indenture. The 10.5% Senior Notes are guaranteed subject to certain customary automatic release provisions on a joint and several basis by all of the wholly-owned domestic subsidiaries of the Company that are engaged in the conduct of the Company’s cigarette businesses, and by DER Holdings LLC, through which the Company indirectly owns a 100% interest in Douglas Elliman. The 10.5% Senior Notes are the Company’s general senior unsecured obligations, and are pari passu in right of payment with all of the Company’s existing and future senior indebtedness and senior in right of payment to all of our future subordinated indebtedness. The 10.5% Senior Notes are effectively subordinated in right of payment to all of our existing and future indebtedness that is secured by assets of the Company or assets of the Guarantors, to the extent of the value of the assets securing such indebtedness. The 10.5% Senior Notes are structurally subordinated to all of the liabilities and preferred stock of any of our subsidiaries that do not guarantee the notes. Each guarantee of the 10.5% Senior Notes are the general obligation of the Guarantor and are pari passu in right of payment with all other senior indebtedness of such Guarantor, including the indebtedness of Liggett and 100 Maple LLC (“Maple”), a subsidiary of Liggett, under their Third Amended and Restated Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”). Each guarantee of the 10.5% Senior Notes are senior in right of payment to all future subordinated indebtedness of the Guarantor, if any. The indenture contains covenants that limit the Company and each Guarantor’s ability to, among other things: (i) incur additional indebtedness; (ii) pay dividends or make other distributions, including dividends, repurchases or redemptions of its equity interests; (iii) prepay, redeem or repurchase its subordinated indebtedness; (iv) make investments; (v) sell assets; (vi) incur certain liens; (vii) enter into agreements restricting its subsidiaries’ ability to pay dividends; (viii) enter into transactions with affiliates; and (ix) consolidate, merge or sell all or substantially all of its assets. These covenants are subject to a number of important exceptions and qualifications, as described in the indenture. As of December 31, 2018 , the Company was in compliance with all debt covenants. Variable Interest Senior Convertible Debt : Vector has outstanding two series of variable interest senior convertible debt. Both series of debt pay interest on a quarterly basis at a stated rate plus an additional amount of interest on each payment date. The additional amount 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 would be convertible on such record date (the “Additional Interest”). 7.5% Variable Interest Senior Convertible Notes due 2019: In November 2012, the Company sold $230,000 of its 7.5% Variable Interest Senior Convertible Notes due 2019 (the “ 7.5% Convertible Notes”) in a public offering registered under the Securities Act. The 7.5% 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 7.5% 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 7.5% Convertible Notes were approximately $218,900 after deducting underwriting discounts, commissions, fees and offering expenses. The 7.5% Convertible Notes pay interest (“Total Interest”) on a quarterly basis beginning January 15, 2013 at a rate of 2.5% 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 shall be the higher of (i) the Total Interest and (ii) 7.5% per annum. The notes are convertible into the Company’s common stock at the holder’s option. The notes matured on January 15, 2019 and the Company paid $230,000 of principal and $8,102 of accrued interest. Share Lending Agreement: In connection with the offering of its 7.5% Convertible Notes in November 2012, the Company lent Jefferies & Company (“Jefferies”), the underwriter for the offering, a total of 8,193,346 shares of the Company’s common stock under the Share Lending Agreement. Jefferies was entitled to offer and sell such shares and use the sale to facilitate the establishment of a hedge position by investors in the notes and will receive all proceeds from the common stock offerings and lending transactions under the Share Lending Agreement. The Company received a nominal lending fee of $0.10 per share for each share of common stock that the Company lent pursuant to the Share Lending Agreement. The Share Lending Agreement required that the shares borrowed be returned upon the maturity of the related debt, January 2019, or earlier, including the redemption of the notes or the conversion of the notes to shares of common stock pursuant to the terms of the indenture governing the notes. Borrowed shares are issued and outstanding for corporate law purposes and, accordingly, the holders of the borrowed shares had all of the rights of a holder of the Company’s outstanding shares. However, because the share borrower was required to have returned all borrowed shares (or identical shares) to the Company, the borrowed shares were not considered outstanding for purposes of computing and reporting the Company’s earnings per share in accordance with U.S. GAAP. Jefferies paid the Company an amount equal to any dividends or other distributions that the Company paid on the borrowed shares. The Company received a nominal fee for the loaned shares and determined the fair value of the Share Lending Agreement was $3,204 at the date of issuance based on the present value of the future cash flows attributed to an estimated reduction in stated interest due to the presence of the Share Lending Agreement. The $3,204 fair value was recognized as a debt financing charge and is being amortized to interest expense over the term of the notes. During 2012, 2016, and 2017, 4,096,674 , 2,354,855 , and 1,741,817 shares were returned but no cash was exchanged, respectively. As of December 31, 2018 , no shares were outstanding on the Share Lending Agreement and $1,300 had been amortized to interest expense during the year. The issuance costs associated with the Share Lending Agreement were presented on the balance sheet as a direct deduction from the face amount of the related notes. The unamortized amount of the Share Lending Agreement was $66 and $1,366 at December 31, 2018 and 2017 , respectively. 5.5% Variable Interest Senior Convertible Notes due 2020 : On March 24, 2014, the Company completed the sale of $258,750 of its 5.5% Variable Interest Convertible Senior Notes due 2020 (the “ 5.5% Convertible Notes”). The 5.5% 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 5.5% 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 5.5% Convertible Notes were approximately $250,300 after deducting underwriting discounts, commissions, fees and offering expenses. The net proceeds were used for general corporate purposes, including for additional investments in real estate and in the Company’s tobacco business. During December 2018, the Company redeemed $26,750 in aggregate principal amount of its 5.5% Convertible Notes outstanding at a redemption price of 101.15% . The Company paid $27,141 to redeem the notes and recorded a loss of $4,066 for the early extinguishment of debt. The 5.5% 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 is 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 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. Shares of Common Stock per $1,000 Principal Amount due on Convertible Notes: The conversion rates for all convertible debt outstanding are summarized below: December 31, 2018 December 31, 2017 Conversion Price Shares per $1,000 Conversion Price Shares per $1,000 7.5% Convertible Notes $ 13.80 72.4376 $ 13.80 72.4376 5.5% Convertible Notes $ 21.28 46.9869 $ 21.28 46.9869 Embedded Derivatives on the Variable Interest Senior Convertible Debt: The portion of the interest on the Company’s convertible debt which is computed by reference to the cash dividends paid on the Company’s common stock is considered an embedded derivative within the convertible debt, which the Company is required to separately value. In accordance with authoritative guidance on accounting for derivatives and hedging, the Company has bifurcated these embedded derivatives and estimated the fair value of the embedded derivative liability including using a third-party valuation. The resulting discount created by allocating a portion of the issuance proceeds to the embedded derivative is then amortized to interest expense over the term of the debt using the effective interest method. Changes to the fair value of these embedded derivatives are reflected quarterly in the Company’s consolidated statements of operations as “Change in fair value of derivatives embedded within convertible debt.” The value of the embedded derivative is contingent on changes in interest rates of debt instruments maturing over the duration of the convertible debt as well as projections of future cash and stock dividends over the term of the debt. A summary of non-cash interest expense associated with the amortization of the debt discount created by the embedded derivative liability associated with the Company’s variable interest senior convertible debt is as follows: Year Ended December 31, 2018 2017 2016 7.5% Convertible Notes $ 39,845 $ 23,720 $ 14,294 5.5% Convertible Notes 15,924 13,490 11,438 Interest expense associated with embedded derivatives $ 55,769 $ 37,210 $ 25,732 A summary of non-cash changes in fair value of derivatives embedded within convertible debt is as follows: Year Ended December 31, 2018 2017 2016 7.5% Convertible Notes $ 24,530 $ 21,734 $ 19,184 5.5% Convertible Notes 20,459 14,185 12,526 Gain on changes in fair value of derivatives embedded within convertible debt $ 44,989 $ 35,919 $ 31,710 The following table reconciles the fair value of derivatives embedded within convertible debt: 7.5% Convertible Notes 5.5% Convertible Notes Total Balance at January 1, 2016 $ 72,083 $ 71,959 $ 144,042 Gain from changes in fair value of embedded derivatives (19,184 ) (12,526 ) (31,710 ) Balance at December 31, 2016 52,899 59,433 112,332 Gain from changes in fair value of embedded derivatives (21,734 ) (14,185 ) (35,919 ) Balance at December 31, 2017 31,165 45,248 76,413 Gain from changes in fair value of embedded derivatives (24,530 ) (20,459 ) (44,989 ) Balance at December 31, 2018 $ 6,635 $ 24,789 $ 31,424 Beneficial Conversion Feature on Variable Interest Senior Convertible Debt: After giving effect to the recording of the embedded derivative liability as a discount to the convertible debt, the Company’s common stock had a fair value at the issuance date of the debt in excess of the conversion price resulting in a beneficial conversion feature. The accounting guidance on debt with conversion and other options requires that the intrinsic value of the beneficial conversion feature be recorded to additional paid-in capital and as a discount on the debt. The discount is then amortized to interest expense over the term of the debt using the effective interest method. The beneficial conversion feature has been recorded, net of income taxes, as an increase to stockholders’ deficiency. A summary of non-cash interest expense associated with the amortization of the debt discount created by the beneficial conversion feature on the Company’s variable interest senior convertible debt is as follows: Year Ended December 31, 2018 2017 2016 Amortization of beneficial conversion feature: 7.5% Convertible Notes $ 26,049 $ 15,507 $ 9,345 5.5% Convertible Notes 4,805 4,070 3,451 Interest expense associated with beneficial conversion feature $ 30,854 $ 19,577 $ 12,796 Unamortized Debt Discount on Variable Interest Senior Convertible Debt: The following table reconciles unamortized debt discount within convertible debt: 7.5% Convertible Notes 5.5% Convertible Notes Total Balance at January 1, 2016 $ 132,119 $ 86,136 $ 218,255 Amortization of embedded derivatives (14,294 ) (11,438 ) (25,732 ) Amortization of beneficial conversion feature (9,345 ) (3,451 ) (12,796 ) Balance at December 31, 2016 108,480 71,247 179,727 Amortization of embedded derivatives (23,720 ) (13,490 ) (37,210 ) Amortization of beneficial conversion feature (15,507 ) (4,070 ) (19,577 ) Balance at December 31, 2017 69,253 53,687 122,940 Partial redemption of 5.5% convertible notes — (3,493 ) (3,493 ) Amortization of embedded derivatives (39,845 ) (15,924 ) (55,769 ) Amortization of beneficial conversion feature (26,049 ) (4,805 ) (30,854 ) Balance at December 31, 2018 $ 3,359 $ 29,465 $ 32,824 Revolving Credit Facility — Liggett : In January 2015, Liggett and Maple, entered into the Credit Agreement, with Wells Fargo, as agent and lender. The Credit Agreement governs a $60,000 credit facility (the “Credit Facility”) that consists of a revolving credit facility (the “Revolver”) and a $3,600 term loan (the “Term Loan”) that is within the $60,000 commitment under the Credit Facility and reduces the amount available under the Revolver. All borrowings under the Credit Facility (other than the Term Loan) are limited to a borrowing base equal to the sum of (I) 80% of the value of eligible inventory consisting of packaged cigarettes plus (II) 60% multiplied by Liggett’s eligible cost of inventory consisting of leaf tobacco less certain reserves against inventory, bank products or other items which Wells Fargo may establish from time to time in its permitted discretion. The obligations under the Credit Facility are collateralized on a first priority basis by all inventories, receivables and certain other personal property of Liggett and Maple, a mortgage on Liggett’s manufacturing facility and certain real property of Maple, subject to certain permitted liens. In connection with the issuance of the 6.125% Senior Secured Notes due 2025, in January 2017, Liggett and Maple entered into Amendment No. 1 of the Credit Facility to update certain defined terms of the Credit Facility relating to the Company’s 6.125% Senior Secured Notes due 2025. The term of the Credit Facility expires on March 31, 2020. Loans under the Credit Facility bear interest at a rate equal to LIBOR plus 2.25% . The interest rate applicable to this Credit Facility at December 31, 2018 and 2017 was 4.77% and 3.82% , respectively. The Credit Facility, as amended, permits the guaranty of the 6.125% Senior Secured Notes due 2025 and the 10.5% Senior Notes due 2026 by each of Liggett and Maple. Wells Fargo, Liggett, Maple and the collateral agent for the holders of the 6.125% Senior Secured Notes due 2025 have entered into an intercreditor agreement, pursuant to which the liens of the collateral agent on the Liggett and Maple assets will be subordinated to the liens of Wells Fargo on the Liggett and Maple assets. The Credit Facility contains customary affirmative and negative covenants, including covenants that limit Liggett’s, Maple’s and their subsidiaries’ ability to incur, create or assume certain indebtedness, to incur or assume certain liens, to purchase, hold or acquire certain investments, to declare or make certain dividends and distributions and to engage in certain mergers, consolidations and asset sales. The Credit Facility also requires the Company to comply with specified financial covenants, including that Liggett’s earnings before interest, taxes, depreciation and amortization, as defined under the Credit Facility, on a trailing twelve month basis, shall not be less than $100,000 if Liggett’s excess availability, as defined under the Credit Facility, is less than $20,000 . The covenants also require that annual capital expenditures, as defined under the Credit Facility (before a maximum carryover amount of $10,000 ), shall not exceed $20,000 during any fiscal year. The Credit Facility also contains customary events of default. The Credit Facility requires Liggett’s compliance with certain financial and other covenants including a restriction on Liggett’s ability to pay cash dividends unless Liggett’s borrowing availability, as defined, under the credit facility for the 30 -day period prior to the payment of the dividend, and after giving effect to the dividend, was at least $ 5,000 and no event of default had occurred under the agreement, including Liggett’s compliance with the covenants in the credit facility. Liggett was in compliance with these covenants as of December 31, 2018 . Term Loan under Credit Facility — Liggett : Within the commitment under the Credit Facility, Wells Fargo holds a mortgage on Liggett’s manufacturing facility through a Term Loan with Maple. The outstanding balance under the Term Loan is $2,409 as of December 31, 2018 . The Term Loan bears an interest rate equal to LIBOR + 2.25% . Monthly principal payments of $25 are due under the Term Loan on the first day of each month with the unpaid principal balance of approximately $2,000 due at maturity on March 1, 2020. As of December 31, 2018 , a total of $30,790 was outstanding under the revolving and term loan portions of the credit facility. Availability as determined under the facility was approximately $20,920 based on eligible collateral at December 31, 2018 . Other : Other Notes Payable consist primarily of $30,000 of notes payable issued by New Valley. On December 31, 2018, New Valley acquired the remaining 29.41% interest in Douglas Elliman for a total purchase price of $40,000 , which included $10,000 of cash paid and the remaining $30,000 of notes payable to the sellers. Interest on the outstanding principal balance of the notes will accrue at the AFR in effect as of December 31, 2018. This interest rate will be adjusted to the then-current AFR on January 1, 2020 and on each payment date thereafter. New Valley will pay principal and interest in equal quarterly installments beginning with January 1, 2020 through October 1, 2022. Fair Value of Notes Payable and Long-Term Debt: The estimated fair value of the Company’s notes payable and long-term debt are as follows: December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Senior Notes $ 1,175,000 $ 1,034,500 $ 850,000 $ 879,750 Variable Interest Senior Convertible Debt 429,176 468,704 365,810 662,169 Liggett and other 62,269 62,255 37,732 37,697 Notes payable and long-term debt $ 1,666,445 (1) $ 1,565,459 $ 1,253,542 (1) $ 1,579,616 __________ (1) The carrying value does not include the carrying value of the embedded derivative. See Note 18 . Notes payable and long-term debt are carried on the consolidated balance sheet at amortized cost. The fair value determinations disclosed above would be classified as Level 2 under the fair value hierarchy disclosed in Note 18 if such liabilities were recorded on the consolidated 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 Note 1 . The Company used a derived price based upon quoted market prices and trade activity as of December 31, 2018 to determine the fair value of its publicly-traded notes and debentures. The carrying value of the revolving credit facility and term loan is equal to the fair value. The fair value of the equipment loans and other obligations was determined by calculating the present value of the required future cash flows. However, considerable judgment is required to develop the estimates of fair value and, accordingly, the estimate presented herein is not necessarily indicative of the amount that could be realized in a current market exchange. Scheduled Maturities : Scheduled maturities of notes payable and long-term debt are as follows: Principal Unamortized Discount/ (Premium) Net Year Ending December 31: 2019 $ 259,791 $ 3,359 $ 256,432 2020 244,478 29,465 215,013 2021 10,000 — 10,000 2022 10,000 — 10,000 2023 — — — Thereafter 1,175,000 — 1,175,000 Total $ 1,699,269 $ 32,824 $ 1,666,445 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | COMMITMENTS Certain of the Company’s subsidiaries lease facilities and equipment used in operations under both month-to-month and fixed-term agreements. The aggregate minimum rentals under operating leases with non-cancelable terms of one year or more as of December 31, 2018 are as follows: Lease Commitments Sublease Rentals Net Year Ending December 31: 2019 $ 35,973 $ 69 $ 35,904 2020 29,917 — 29,917 2021 27,592 — 27,592 2022 25,185 — 25,185 2023 23,589 — 23,589 Thereafter 104,126 — 104,126 Total $ 246,382 $ 69 $ 246,313 The Company’s rental expense for the years ended December 31, 2018 , 2017 and 2016 was $38,893 , $34,858 and $27,237 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Benefit Plans and Postretirement Plans : Defined Benefit Plans. The Company sponsors three defined benefit pension plans ( two qualified and one non-qualified) covering virtually all individuals who were employed by Liggett on a full-time basis prior to 1994. Future accruals of benefits under these three defined benefit plans were frozen between 1993 and 1995. These benefit plans provide pension benefits for eligible employees based primarily on their compensation and length of service. Contributions are made to the two qualified pension plans in amounts necessary to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974. The plans’ assets and benefit obligations were measured at December 31, 2018 and 2017 , respectively. The Company also sponsors a Supplemental Retirement Plan (“SERP”) where the Company will pay supplemental retirement benefits to certain key employees, including certain executive officers of the Company. The plan meets the applicable requirements of Section 409A of the Internal Revenue Code and is intended to be unfunded for tax purposes. Payments under the SERP will be made out of the general assets of the Company. The SERP is a defined benefit plan. Under the SERP, the benefit payable to a participant at his normal retirement date is a lump sum amount which is the actuarial equivalent of a predetermined annual retirement benefit set by the Company’s board of directors. Normal retirement date is defined as the January 1 following the attainment by the participant of the latter of age 60 or the completion of eight years of employment following January 1, 2002 with the Company or a subsidiary. The SERP provides the Company’s President and Chief Executive Officer with an additional benefit under the SERP equal to a $736 lifetime annuity. In addition, in the event of a termination of his employment under the circumstances where he is entitled to severance payments under his employment agreement, he will be credited with an additional 36 months of service towards vesting under the SERP. At December 31, 2018 , the aggregate lump sum equivalents of the annual retirement benefits payable under the Amended SERP at normal retirement dates occurring during the following years is as follows: 2019 – $0 ; 2020 – $7,111 ; 2021 – $0 ; 2022 – $0 ; 2023 – $0 and 2024 to 2028 – $57,097 . In the case of a participant who becomes disabled prior to his normal retirement date or whose service is terminated without cause, the participant’s benefit consists of a pro-rata portion of the full projected retirement benefit to which he would have been entitled had he remained employed through his normal retirement date, as actuarially discounted back to the date of payment. A participant who dies while working for the Company or a subsidiary (and before becoming disabled or attaining his normal retirement date) will be paid an actuarially discounted equivalent of his projected retirement benefit; conversely, a participant who retires beyond his normal retirement date will receive an actuarially increased equivalent of his projected retirement benefit. Postretirement Medical and Life Plans. The Company provides certain postretirement medical and life insurance benefits to certain employees and retirees. Substantially all of the Company’s manufacturing employees as of December 31, 2018 are eligible for postretirement medical benefits if they reach retirement age while working for Liggett or certain affiliates. Retirees are required to fund 100% of participant medical premiums and, pursuant to union contracts, Liggett reimburses approximately 138 hourly retirees, who retired prior to 1991, for Medicare Part B premiums. In addition, the Company provides life insurance benefits to approximately 105 active employees and 401 retirees who reach retirement age and are eligible to receive benefits under one of the Company’s defined benefit pension plans. The Company’s postretirement liabilities are comprised of Medicare Part B and life insurance premiums. The following table provides a reconciliation of benefit obligations, plan assets and the funded status of the pension plans and other postretirement benefits: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at January 1 $ (132,722 ) $ (132,721 ) $ (8,967 ) $ (8,682 ) Service cost (587 ) (564 ) (4 ) (5 ) Interest cost (4,495 ) (5,059 ) (330 ) (368 ) Plan amendment — — (39 ) — Benefits paid 8,524 9,012 553 582 Expenses paid 260 297 — — Actuarial gain 5,855 (3,687 ) 491 (494 ) Benefit obligation at December 31 $ (123,165 ) $ (132,722 ) $ (8,296 ) $ (8,967 ) Change in plan assets: Fair value of plan assets at January 1 $ 106,192 $ 103,781 $ — $ — Actual return on plan assets (4,497 ) 11,373 — — Expenses paid (260 ) (297 ) — — Contributions 256 347 553 582 Benefits paid (8,524 ) (9,012 ) (553 ) (582 ) Fair value of plan assets at December 31 $ 93,167 $ 106,192 $ — $ — Unfunded status at December 31 $ (29,998 ) $ (26,530 ) $ (8,296 ) $ (8,967 ) Amounts recognized in the consolidated balance sheets: Prepaid pension costs $ 23,869 $ 27,697 $ — $ — Other accrued liabilities (228 ) (313 ) (647 ) (639 ) Non-current employee benefit liabilities (53,639 ) (53,914 ) (7,649 ) (8,328 ) Net amounts recognized $ (29,998 ) $ (26,530 ) $ (8,296 ) $ (8,967 ) Pension Benefits Other Postretirement Benefits 2018 2017 2016 2018 2017 2016 Service cost — benefits earned during the period $ 587 $ 564 $ 547 $ 4 $ 5 $ 5 Interest cost on projected benefit obligation 4,495 5,059 5,419 330 368 385 Expected return on assets (5,572 ) (5,424 ) (6,076 ) — — — Prior service cost — — — 4 — — Amortization of net loss (gain) 1,804 2,009 1,855 (41 ) (54 ) (75 ) Net expense $ 1,314 $ 2,208 $ 1,745 $ 297 $ 319 $ 315 The following table summarizes amounts in accumulated other comprehensive loss (gain) that are expected to be recognized as components of net periodic benefit cost for the year ending 2019 . Defined Benefit Pension Plans Post- Retirement Plans Total Prior service cost $ — $ 4 $ 4 Actuarial loss (gain) $ 2,001 $ (40 ) $ 1,961 As of December 31, 2018 , accumulated other comprehensive (loss) income, before income taxes, consists of the following: Defined Benefit Pension Plans Post- Retirement Plans Total Accumulated other comprehensive loss as of January 1, 2018 $ (31,643 ) $ (237 ) $ (31,880 ) Amortization of loss (gain) 1,804 (41 ) 1,763 Net (loss) gain arising during the year (4,214 ) 491 (3,723 ) Accumulated other comprehensive (loss) income as of December 31, 2018 $ (34,053 ) $ 177 $ (33,876 ) As of December 31, 2017 , accumulated other comprehensive (loss) income, before income taxes, consisted of the following: Defined Benefit Pension Plans Post- Retirement Plans Total Accumulated other comprehensive (loss) income as of January 1, 2017 $ (35,914 ) $ 311 $ (35,603 ) Amortization of loss (gain) 2,009 (54 ) 1,955 Net gain (loss) arising during the year 2,262 (494 ) 1,768 Accumulated other comprehensive loss as of December 31, 2017 $ (31,643 ) $ (237 ) $ (31,880 ) As of December 31, 2018 , two of the Company’s four defined benefit plans experienced accumulated benefit obligations in excess of plan assets, for which, in the aggregate, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets were $53,865 , $53,865 and $0 , respectively. As of December 31, 2017 , two of the Company’s four defined benefit plans experienced accumulated benefit obligations in excess of plan assets, for which in the aggregate the projected benefit obligation, accumulated benefit obligation and fair value of plan assets were $54,227 , $54,227 and $0 , respectively. Pension Benefits Other Postretirement Benefits 2018 2017 2016 2018 2017 2016 Weighted average assumptions: Discount rates — benefit obligation 3.9% - 4.25% 3.25% - 3.7% 3.60% - 4.20% 4.35% 3.80% 4.40% Discount rates — service cost 3.25% - 3.7% 3.6% - 4.2% 3.75% - 4.50% 3.80% 4.40% 4.75% Assumed rates of return on invested assets 5.50% 5.50% 6.00% N/A N/A N/A Salary increase assumptions N/A N/A N/A 3.00% 3.00% 3.00% Discount rates were determined by a quantitative analysis examining the prevailing prices of high quality bonds to determine an appropriate discount rate for measuring obligations. The aforementioned analysis analyzes the cash flow from each of the Company’s four benefit plans as well as a separate analysis of the cash flows from the postretirement medical and life insurance plans sponsored by Liggett. The aforementioned analyses then construct a hypothetical bond portfolio whose cash flow from coupons and maturities match the year-by-year, projected benefit cash flow from the respective pension or retiree health plans. The Company uses the lower discount rate derived from the two independent analyses in the computation of the benefit obligation and service cost for each respective retirement liability. The Company uses the discount rate derived from the analysis in the computation of the benefit obligation and service cost for all the plans respective retirement liability. The Company considers input from its external advisors and historical returns in developing its expected rate of return on plan assets. The expected long-term rate of return is the weighted average of the target asset allocation of each individual asset class. The Company’s actual 10 -year annual rate of return on its pension plan assets was 8.3% , 5.2% and 5.2% for the years ended December 31, 2018 , 2017 and 2016 , respectively, and the Company’s actual five -year annual rate of return on its pension plan assets was 3.19% , 7.28% and 7.6% for the years ended December 31, 2018 , 2017 and 2016 , respectively. Gains and losses resulted from changes in actuarial assumptions and from differences between assumed and actual experience, including, among other items, changes in discount rates and changes in actual returns on plan assets as compared to assumed returns. These gains and losses are only amortized to the extent that they exceed 10% of the greater of Projected Benefit Obligation and the fair value of assets. For the year ended December 31, 2018 , Liggett used a 13.67 -year period for its Hourly Plan and a 13.26 -year period for its Salaried Plan to amortize pension fund gains and losses on a straight line basis. Such amounts are reflected in the pension expense calculation beginning the year after the gains or losses occur. The amortization of deferred losses negatively impacts pension expense in the future. Plan assets are invested employing multiple investment management firms. Managers within each asset class cover a range of investment styles and focus primarily on issue selection as a means to add value. Risk is controlled through a diversification among asset classes, managers, styles and securities. Risk is further controlled both at the manager and asset class level by assigning excess return and tracking error targets. Investment managers are monitored to evaluate performance against these benchmark indices and targets. Allowable investment types include equity, investment grade fixed income, high yield fixed income, hedge funds and short term investments. The equity fund is comprised of common stocks and mutual funds of large, medium and small companies, which are predominantly U.S. based. The investment grade fixed income fund includes managed funds investing in fixed income securities issued or guaranteed by the U.S. government, or by its respective agencies, mortgage backed securities, including collateralized mortgage obligations, and corporate debt obligations. The high yield fixed income fund includes a fund which invests in non-investment grade corporate debt securities. The hedge funds invest in both equity, including common and preferred stock, and debt obligations, including convertible debentures, of private and public companies. The Company generally utilizes its short-term investments, including interest-bearing cash, to pay benefits and to deploy in special situations. The Liggett Employee Benefits Committee has established the following target assets allocation to equal 55.0% equity investments, 35.0% investment grade fixed income, and 10.0% high yield fixed income, with a rebalancing range of approximately plus or minus 5% around the target asset allocations. Vector’s defined benefit retirement plan allocations by asset category, were as follows: Plan Assets at December 31, 2018 2017 Asset category: Equity securities 52 % 56 % Investment grade fixed income securities 39 % 35 % High yield fixed income securities 9 % 9 % Total 100 % 100 % The defined benefit plans’ recurring financial assets subject to fair value measurements and the necessary disclosures are as follows: Fair Value Measurements as of December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Insurance contracts $ 2,161 $ — $ 2,161 $ — Amounts in individually managed investment accounts: Cash, mutual funds and common stock 175 175 — — U.S. equity securities — — — — Common collective trusts 48,126 — 48,126 — Common collective trusts at NAV (1) 33,731 — — — Mutual Funds 8,974 — 8,974 — Total $ 93,167 $ 175 $ 59,261 $ — (1) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. Fair Value Measurements as of December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Insurance contracts $ 2,245 $ — $ 2,245 $ — Amounts in individually managed investment accounts: Cash, mutual funds and common stock 173 173 — — U.S. equity securities 2,149 2,149 — — Common collective trusts 35,064 — 35,064 — Common collective trusts at NAV (1) 56,406 — — — Investment Partnership 10,155 — 10,028 127 Total $ 106,192 $ 2,322 $ 47,337 $ 127 (1) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. The fair value determination disclosed above of assets as Level 3 under the fair value hierarchy was determined based on unobservable inputs and were based on company assumptions, and information obtained from the investments based on the indicated market values of the underlying assets of the investment portfolio. The fair value of investment included in Level 1 are based on quoted market prices from various stock exchanges. The Level 2 investments are based on quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets in markets that are not active. The changes in the fair value of the Level 3 investments as of December 31, 2018 and 2017 were as follows: 2018 2017 Balance as of January 1 $ 127 $ 1,990 Distributions (127 ) (1,962 ) Unrealized gain on long-term investments — 15 Realized gain on long-term investments — 84 Balance as of December 31 $ — $ 127 For 2018 measurement purposes, annual increases in Medicare Part B trends were assumed to equal rates between 4.04% and 6.13% between 2019 and 2026 and 4.5% thereafter. For 2017 measurement purposes, annual increases in Medicare Part B trends were assumed to equal rates between 3.73% and 7.28% between 2018 and 2025 and 4.5% thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A 1% change in assumed health care cost trend rates would have the following effects: 1% Increase 1% Decrease Effect on total of service and interest cost components $ 2 $ (2 ) Effect on benefit obligation 54 (51 ) To comply with ERISA’s minimum funding requirements, the Company does not currently anticipate that it will be required to make any contributions to the pension plan year beginning on January 1, 2019 and ending on December 31, 2019 . Any additional funding obligation that the Company may have for subsequent years is contingent on several factors and is not reasonably estimable at this time. Estimated future pension and postretirement medical benefits payments are as follows: Pension Postretirement Medical 2019 $ 8,077 $ 647 2020 14,692 632 2021 7,111 631 2022 6,671 630 2023 6,265 628 2024 - 2028 82,618 2,944 Profit Sharing and 401(k) Plans : The Company maintains 401(k) plans for substantially all U.S. employees which allow eligible employees to invest a percentage of their pre-tax compensation. The Company contributed to the 401(k) plans and expensed $1,793 , $1,736 and $1,564 for the years ended December 31, 2018 , 2017 and 2016 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The amounts provided for income taxes are as follows: Year Ended December 31, 2018 2017 2016 Current: U.S. Federal $ 27,962 $ 28,271 $ 29,185 State 11,225 3,458 7,407 $ 39,187 $ 31,729 $ 36,592 Deferred: U.S. Federal $ (12,524 ) $ (31,049 ) $ 10,076 State (5,111 ) (2,262 ) 2,495 (17,635 ) (33,311 ) 12,571 Total $ 21,552 $ (1,582 ) $ 49,163 The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and liabilities is as follows: December 31, 2018 December 31, 2017 Deferred tax assets: Employee benefit accruals $ 12,801 $ 11,621 Impairment of investments 4,131 1,834 Impact of timing of settlement payments 20,551 14,367 Disallowed interest expense carryforward 1,619 — Various U.S. state tax loss carryforwards 5,137 6,556 Other 1,966 1,110 46,205 35,488 Less: Valuation allowance (3,817 ) (3,664 ) Net deferred tax assets $ 42,388 $ 31,824 Deferred tax liabilities: Basis differences on non-consolidated entities $ (7,752 ) $ (5,388 ) Basis differences on fixed and intangible assets (35,854 ) (36,712 ) Capitalized interest expense (6,532 ) (6,069 ) Basis differences on inventory (11,497 ) (11,357 ) Basis differences on long-term investments (16,496 ) (15,521 ) Impact of accounting for convertible debt (385 ) (12,776 ) Basis differences on available for sale securities (1,283 ) (2,802 ) $ (79,799 ) $ (90,625 ) Net deferred tax liabilities $ (37,411 ) $ (58,801 ) The Company files a consolidated U.S. income tax return that includes its more than 80% -owned U.S. subsidiaries. Vector Tobacco had tax-effected state and local net operating loss carryforwards of $5,137 and $6,556 , respectively, at December 31, 2018 and 2017 , expiring through tax year 2027 . In addition, the Company established a new deferred tax asset related to the amount of interest expense the Company expects to be disallowed as a result of the Tax Act. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company had a valuation allowance of $3,817 and $3,664 at December 31, 2018 and 2017 , respectively. The valuation allowance at December 31, 2018 primarily relates to a reserve against the Company’s disallowed interest expense carryforward and Vector Tobacco’s state and local net operating loss carryforwards. The valuation allowance at December 31, 2017 primarily relates to a reserve against Vector Tobacco’s state and local net operating loss carryforwards. The valuation allowance was increased in 2018 as compared to 2017 , due to the Company’s expectation that none of the interest expense disallowed as a result of the Tax Act will be available for future use. The increase was partially offset by a reduction in valuation allowance recorded against state net operating loss carryforwards. The consolidated balance sheets of the Company include deferred income tax assets and liabilities, which represent temporary differences in the application of accounting rules established by generally accepted accounting principles (“US GAAP”) and income tax laws. On December 22, 2017 , the Tax Act was enacted making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017 and limitation on interest expense deductions. Interest expense is limited to 30% of taxable income before interest, depreciation and amortization from 2019 to 2022 and then limited to 30% of taxable income before interest thereafter. On December 22, 2017 , Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company completed its analysis of the impact of the Tax Act in the fourth quarter of 2018 . Upon refinement of certain estimates from those computed as of December 31, 2017 , the Company recorded an additional tax benefit of $2,691 during the year ended December 31, 2018 . This amount relates to deductions received from pass through entities in 2017 that were greater than estimated as of December 31, 2017 . Differences between the amounts provided for income taxes and amounts computed at the federal statutory tax rate are summarized as follows: Year Ended December 31, 2018 2017 2016 Income before provision for income taxes $ 79,559 $ 89,168 $ 126,429 Federal income tax expense at statutory rate 16,707 31,209 44,250 Increases (decreases) resulting from: State income taxes, net of federal income tax benefits 6,060 3,833 6,991 Impact of non-controlling interest 21 (2,162 ) (2,148 ) Non-deductible expenses 1,993 2,146 2,569 Impact of domestic production deduction 359 (2,960 ) (2,603 ) Impact of Tax Cuts and Jobs Act of 2017 (2,691 ) (28,845 ) — Excess tax benefits on stock-based compensation (778 ) (1,143 ) — Tax credits (127 ) (2,683 ) (359 ) Other (545 ) (155 ) (1,202 ) Inclusion of tax liabilities from unincorporated entities 400 (47 ) 1,126 Changes in valuation allowance, net of equity and tax audit adjustments 153 (775 ) 539 Income tax expense (benefit) $ 21,552 $ (1,582 ) $ 49,163 The Company’s income tax expense is principally attributable to the Company’s federal and state income taxes based on the Company’s earnings. The non-deductible expenses presented in the table above largely relate to the Company’s non-deductible executive compensation. The following table summarizes the activity related to the unrecognized tax benefits: Balance at January 1, 2016 $ 1,523 Additions based on tax positions related to prior years 72 Settlements (119 ) Expirations of the statute of limitations (961 ) Balance at December 31, 2016 515 Additions based on tax positions related to prior years 208 Settlements — Expirations of the statute of limitations (95 ) Balance at December 31, 2017 628 Additions based on tax positions related to prior years 26 Settlements (100 ) Expirations of the statute of limitations (163 ) Balance at December 31, 2018 $ 391 In the event the unrecognized tax benefits of $391 at December 31, 2018 were recognized, such recognition would impact the annual effective tax rate. The Company classifies all tax-related interest and penalties as income tax expense. It is reasonably possible the Company may recognize up to approximately $119 of unrecognized tax benefits over the next 12 |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation | STOCK COMPENSATION The Company granted equity compensation under its Amended and Restated 1999 Long-Term Incentive Plan (the “1999 Plan”) until the 1999 Plan expired on December 31, 2013. On May 16, 2014, the Company’s stockholders approved the 2014 Management Incentive Plan (the “2014 Plan”). The 2014 Plan replaced the 1999 Plan. Like the 1999 Plan, the 2014 Plan provides for the Company to grant stock options, stock appreciation rights and restricted stock. The 2014 Plan also provides for awards based on a multi-year performance period and for annual short-term awards based on a twelve -month performance period. Shares available for issuance under the 2014 Plan are 7,758,012 shares. The Company may satisfy its obligations under any award granted under the 2014 Plan by issuing new shares. Awards previously granted under the 1999 Plan remain outstanding in accordance with their terms. Stock Options. The Company recognized compensation expense of $2,246 , $2,207 and $2,203 related to stock options in the years ended December 31, 2018 , 2017 and 2016 , respectively. All awards have a contractual term of ten years and awards vest over a period of two to seven years depending upon each grant. The fair value of option grants is estimated at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including expected stock price characteristics which are significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, the existing models do not necessarily provide a reliable single measure of the fair value of stock-based compensation awards. The assumptions used under the Black-Scholes option pricing model in computing fair value of options are based on the expected option life considering both the contractual term of the option and expected employee exercise behavior, the interest rate associated with U.S. Treasury issues with a remaining term equal to the expected option life and the expected volatility of the Company’s common stock over the expected term of the option. The assumptions used for grants in the years ended December 31, 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Risk-free interest rate 2.7% - 2.9% 2.1% - 2.4% 1.5% - 1.7% Expected volatility 19.02% - 21.05% 18.88% - 21.62% 16.49% - 18.13% Dividend yield 0.0 % 0.0 % 0.0 % Expected holding period 5.00 – 10.00 years 6.00 – 10.00 years 7.00 – 10.00 years Weighted-average grant date fair value (1) $4.62 - $7.58 $5.39 - $8.17 $5.09 - $6.88 _____________________________ ( 1) Per share amounts have not been adjusted to give effect to the stock dividends in 2018 , 2017 and 2016 . A summary of employee stock option transactions follows: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value(1) Outstanding on January 1, 2016 4,336,036 $ 11.93 5.9 $ 36,612 Granted 448,580 $ 20.08 Exercised (36,935 ) $ 10.76 Canceled (6 ) $ — Outstanding on December 31, 2016 4,747,675 $ 12.71 5.3 $ 37,557 Granted 427,219 $ 20.69 Exercised — $ — Canceled (12 ) $ — Outstanding on December 31, 2017 5,174,882 $ 13.38 4.7 $ 41,069 Granted 406,875 $ 19.34 Exercised — $ — Canceled (11 ) $ — Outstanding on December 31, 2018 5,581,746 $ 13.82 4.1 $ 1,095 Options exercisable at: December 31, 2016 2,328,463 December 31, 2017 3,333,525 December 31, 2018 3,828,073 _____________________________ (1) The aggregate intrinsic value represents the amount by which the fair value of the underlying common stock ( $9.73 , $21.31 and $20.63 at December 31, 2018 , 2017 and 2016 , respectively) exceeds the option exercise price. Additional information relating to options outstanding at December 31, 2018 follows: Options Outstanding Options Exercisable Range of Exercise Prices Outstanding as of Weighted-Average Contractual Life (Years) Weighted-Average Exercise Price Exercisable as of Weighted-Average Contractual Life (Years) Weighted-Average Aggregate Intrinsic Value 12/31/2018 12/31/2018 $8.28 - $10.35 1,737,478 0.9 $ 9.10 1,737,478 0.9 $ 9.10 $ — $10.35 - $12.41 1,596,042 3.4 $ 11.91 1,596,042 3.4 $ 11.91 — $12.41 - $14.48 — — $ — — — $ — — $14.48 - $16.55 494,553 5.4 $ 15.41 494,553 5.4 $ 15.41 — $16.55 - $18.62 — — $ — — — $ — — $18.62 - $20.69 1,753,673 7.6 $ 19.77 — — $ — — 5,581,746 4.1 $ 13.82 3,828,073 2.5 $ 11.09 $ 1,095 As of December 31, 2018 , there was $3,537 of total unrecognized compensation cost related to unvested stock options. The cost is expected to be recognized over a weighted-average period of approximately 1.60 years at December 31, 2018 . As a result of adopting ASU 2016-09, the Company reflects the net excess tax benefits of stock-based compensation in its consolidated financial statements as a component of “Cash Flows from Operating Activities.” Prior to the adoption of ASU 2016-09 as of January 1, 2017, the Company reflected the excess tax benefits of stock-based compensation in its consolidated financial statements as a component of “Cash Flows from Financing Activities.” Non-qualified options for 406,875 shares of common stock were issued during 2018 . The exercise price of the options granted was $19.34 in 2018 . The exercise price of the options granted in 2018 was at the fair value on the date of the grants. Non-qualified options for 427,219 shares of common stock were issued during 2017 . The exercise price of the options granted was $20.69 in 2017 . The exercise price of the options granted in 2017 was at the fair value on the date of the grants. Non-qualified options for 448,580 shares of common stock were issued during 2016 . The exercise price of the options granted was $20.08 in 2016 . The exercise price of the options granted in 2016 was at the fair value on the date of the grants. The Company has elected to use the long-form method under which each award grant is tracked on an employee-by-employee basis and grant-by-grant basis to determine if there is a tax benefit or tax deficiency for such award. The Company then compares the fair value expense to the tax deduction received for each grant in order to calculate the related tax benefits and deficiencies. With the adoption of ASU 2016-09 as of January 1, 2017, all excess tax benefits and deficiencies are recognized as a component of income tax expense or benefit on the income statement. The total intrinsic value of options exercised during the year ended December 31, 2016 was $309 . Tax benefits related to option exercises of $116 were recorded as increases to stockholders’ deficiency for the year ended December 31, 2016 . No options were exercised during the years ended December 31, 2018 and 2017 , respectively. Restricted Stock Awards. On May 29, 2018, the Company granted 26,250 restricted shares of the Company’s common stock pursuant to the 1999 Plan to one of its executive officers. The shares vest over a period of two years with one-half of the shares vesting on the first anniversary of the grant date and the remaining half vesting on the second anniversary of the date thereof. The Company will recognize $481 of expense over the vesting period of the May 2018 grant. The Company recognized expense of $142 for the year ended December 31, 2018 . Additionally on May 29, 2018, the Company granted 6,998 restricted shares of the Company’s common stock pursuant to the 1999 Plan to two of its outside directors. The shares vest on April 25, 2019 and the Company will recognize $128 of expense through the vesting date. The Company recognized expense of $82 for the year ended December 31, 2018 . On April 2016, the Company granted 57,881 restricted shares of the Company’s common stock (the “April 2016 Grant”) pursuant to the 1999 Plan to five of its outside directors. The shares vest over three years and the Company will recognize $1,054 of expense over the vesting period of the April 2016 grant. The Company recognized expense of $374 , $351 and $236 for the years ended December 31, 2018 , 2017 and 2016 , respectively. On November 10, 2015, the Company granted its President and Chief Executive Officer an award of 1,389,150 shares of its common stock subject to service and performance-based vesting. The award shares were 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 fair market value of the restricted shares on the date of grant was $28,374 and is being amortized over the performance period as a charge to compensation expense. The Company recognized expense of $4,053 , $5,275 and $4,278 for the years ended December 31, 2018 , 2017 and 2016 , respectively. On July 23, 2014, the Company granted its President and Chief Executive Officer an award of 1,276,282 shares of its common stock subject to service and performance-based vesting. The award shares were 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 fair market value of the restricted shares on the date of grant was $20,780 and is being amortized over the performance period as a charge to compensation expense. The Company recognized expense of $2,969 , $2,969 and $3,122 for the years ended December 31, 2018 , 2017 and 2016 , respectively. In May 2013, the Company granted 57,881 restricted shares of the Company’s common stock (the “May 2013 Grant”) pursuant to the 1999 Plan to its five outside directors. The shares vested over three years and the Company recognized $815 of expense over the vesting period of the May 2013 Grant. The Company recognized expense of $111 for the year ended December 31, 2016 . In October 2013, the President and Chief Executive Officer of Liggett and Liggett Vector Brands was awarded a restricted stock grant of 35,098 shares of Vector’s common stock pursuant to the 1999 Plan. The shares will vest on March 15, 2019, contingent upon the certification of performance-based targets being achieved by the Company’s Tobacco segment. He will receive dividends on the restricted shares as paid. In the event that his employment with the Company is terminated for any reason other than his death, his disability or a change of control (as defined in this Restricted Share Agreement) of the Company, any remaining balance of the shares not previously vested will be forfeited by him. The fair market value of the restricted shares on the date of grant was $458 and is being amortized over the vesting period as a charge to compensation expense. The Company recognized expense of $85 for each of the years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , there was $22,077 of total unrecognized compensation costs related to unvested restricted stock awards. The cost is expected to be recognized over a weighted-average period of approximately 1.72 years. As of December 31, 2017 , there was $29,174 of total unrecognized compensation costs related to unvested restricted stock awards. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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”). The future financial impact of the risks and expenses of litigation are not quantifiable. For the twelve months ended December 31, 2018 , 2017 and 2016 , Liggett incurred tobacco product liability legal expenses and costs totaling $7,144 , $12,809 and $26,611 , respectively. The tobacco product liability legal expenses and costs are included in the operating, selling, administrative and general expenses and litigation settlement and judgment expense line items in the Consolidated Statements of Operations. Legal defense costs are expensed as incurred. Litigation is subject to uncertainty and it is possible that there could be adverse developments in pending cases. With the commencement of new cases, the defense costs and the risks relating to the unpredictability of litigation increase. Management reviews on a quarterly basis with counsel all pending litigation and evaluates the probability of a loss being incurred and 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 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. As of December 31, 2018 , to obtain a stay of the judgment pending the appeal of the Santoro case, Liggett had secured $535 in bonds. 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. The maximum amount of any such bond for an appeal in the Florida state courts will be no greater than $5,000 . In several cases, plaintiffs challenged the constitutionality of the bond cap statute, but to date the courts 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 discussed in this Note 15 : (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 reasonably 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. Although Liggett has generally been successful in managing the litigation filed against it, 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 has entered into settlement discussions in individual cases or groups of cases where Liggett has determined it was in its best interest to do so, and it may continue to do so in the future. 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. Individual Actions As of December 31, 2018 , there were 32 Individual Actions pending against Liggett, 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 the remaining Engle progeny cases or the 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: State Number of Cases Florida 21 Illinois 4 New York 2 Louisiana 2 West Virginia 2 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 In May 1994, the Engle case was filed as a class action 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.” A trial was held and the jury returned a verdict adverse to the defendants (approximately $145,000,000 in punitive damages, including $790,000 against Liggett). Following an appeal to the Third District Court of Appeal, the Florida Supreme Court in July 2006 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 to file individual lawsuits. As a result, Liggett and the Company, and other cigarette manufacturers, were sued 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. Cautionary Statement About Engle Progeny Cases . Since 2009, judgments have been entered against Liggett and other cigarette manufacturers in Engle progeny cases. A number of the judgments have been affirmed on appeal and satisfied by the defendants. Many have been overturned on appeal. As of December 31, 2018 , 25 Engle progeny cases where Liggett was a defendant at trial resulted in verdicts. There have been 16 verdicts in favor of the plaintiffs and nine in favor of Liggett. In five of the cases, punitive damages were awarded against Liggett. In certain cases, the judgments were entered jointly and severally with other defendants and Liggett may face the risk that one or more co-defendants decline or otherwise fail to participate in the bonding required for an appeal or to pay their proportionate or jury-allocated share of a judgment. As a result, under certain circumstances, Liggett may have to pay more than its proportionate share of any bonding or judgment related amounts. Except as discussed in this Note 15 , 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, 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 the amount of their demand for damages. 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. Engle Progeny Settlement I. In October 2013, the Company and Liggett entered into a settlement with approximately 4,900 Engle progeny plaintiffs and their counsel (“ Engle Progeny Settlement I”). 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 and the balance to be paid in installments over 14 years , starting in February 2015. In exchange, the claims of more than 4,900 plaintiffs, including the claims of all plaintiffs with cases pending in federal court, were dismissed with prejudice against the Company and Liggett. Due to the settlement, in 2013, the Company recorded a charge of $86,213 of which approximately $25,000 was related to certain payments discounted to their present value 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 $3,400 per annum through 2028, with a cost of living increase beginning in 2021. In December 2017, Liggett pre-paid the 2018 and 2019 installment payments. Engle Progeny Settlement II . In December 2016, the Company and Liggett entered into an agreement with 124 Engle progeny plaintiffs and their counsel (“ Engle Progeny Settlement II”). Pursuant to the terms of the settlement, Liggett agreed to pay $17,650 , $14,000 of which was paid in December 2016 with the balance of $3,650 paid in December 2017. As a result of the settlement, the Company recorded a charge of $17,650 in the fourth quarter of 2016. In June 2017, Liggett entered into an agreement to settle nine cases (eight Engle progeny cases and one Individual Action) for $1,400 and in September 2017 Liggett entered into an agreement to settle 20 Engle progeny cases for $4,100 . As of December 31, 2018, Liggett (and in certain cases the Company) had, on an individual basis, settled an additional 184 Engle progeny cases for approximately $7,600 in the aggregate. Notwithstanding the comprehensive nature of the Engle Progeny Settlements, approximately 70 plaintiffs’ claims remain pending in state court. Therefore, the Company and Liggett may still be subject to periodic adverse judgments which could have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows. Judgments Paid . As of December 31, 2018, Liggett had paid in the aggregate $39,773 , including interest and attorneys’ fees, to satisfy the judgments in the following Engle progeny cases: Lukacs , Campbell , Douglas , Clay, Tullo, Ward, Rizzuto, Lambert and Buchanan . Maryland Cases Liggett was a defendant in 16 multi-defendant personal injury cases in Maryland alleging claims arising from asbestos and tobacco exposure (“synergy cases”). In July 2016, the Court of Appeals (Maryland’s highest court) ruled that joinder of tobacco and asbestos cases may be possible in certain circumstances, but plaintiffs must demonstrate at the trial court level how such cases may be joined while providing appropriate safeguards to prevent embarrassment, delay, expense or prejudice to defendants and “the extent to which, if at all, the special procedures applicable to asbestos cases should extend to tobacco companies.” The Court of Appeals remanded these issues to be determined at the trial court level. In June 2017, the trial court issued an order dismissing all synergy cases against the tobacco defendants, including Liggett, without prejudice. Plaintiffs may seek appellate review or file new cases against the tobacco companies. Liggett Only Cases There is currently one case pending where Liggett is the sole defendant: Cowart , a Florida Individual Action where there has been no recent activity. It is possible that cases where Liggett is the only defendant could increase as a result of the remaining Engle progeny cases and newly filed Individual Cases. Class Actions As of December 31, 2018 , three actions were pending for which either a class had been certified or plaintiffs were seeking class certification where Liggett is a named defendant. 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. The stay order entered on March 16, 2016 stays the case pending completion of the smoking cessation program ordered by the court in Scott v. The American Tobacco Co . In February 1998, in Parsons v. AC & S Inc. , a purported class action 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 due to the December 2000 bankruptcy of three of the defendants. 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. Liggett was severed from trial of the consolidated action. In May 2013, the jury rejected all but one of the plaintiffs’ claims, finding in favor of plaintiffs on the claim that ventilated filter cigarettes between 1964 and July 1, 1969 should have included instructions on how to use them. The court entered judgment in October 2013, dismissing all claims against the non-Liggett defendants except the ventilated filter claim on behalf of 30 plaintiffs. Subsequently, these claims were settled by the non-Liggett defendants. In May 2016 , the trial court ruled that the case could proceed against Liggett, notwithstanding the outcome of the first phase of the trial against the non-Liggett defendants. In December 2017, the court ordered plaintiffs’ counsel to confirm all remaining plaintiffs with claims against Liggett. The court further agreed that it would entertain a renewed motion by Liggett regarding the impact of the final judgment in favor of co-defendants on the claims against Liggett and whether those claims are barred by the doctrine of collateral estoppel. In March and April 2017, Liggett moved to dismiss a number of plaintiffs’ claims on various grounds. The court granted the motions as to approximately 25 plaintiffs and reserved ruling as to other claims until additional discovery is provided by plaintiffs. Court ordered mediation is scheduled for March 21, 2019. The case is set for trial starting August 12, 2019. It is currently estimated that Liggett could be a defendant in approximately 60 individual cases. Health Care Cost Recovery Actions As of December 31, 2018 , one Health Care Cost Recovery Action was 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 from Liggett and other cigarette manufacturers based on various theories of recovery as a result of alleged sales of tobacco products to minors. The case is dormant. The claims asserted in health care cost recovery actions vary, but can 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. Although no specific damage amounts are typically pleaded, 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. 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, among other things, 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. Liggett is not required to comply. Upcoming Trials As of December 31, 2018 , there were two Individual Actions and one Engle Progeny case scheduled for trial through December 31, 2019, where Liggett (and/or the Company) is a named defendant. Trial dates are subject to change and cases could be set for trial during this time. 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, R.J. Reynolds and two other companies (the “Original Participating Manufacturers” or “OPMs”) and Liggett and Vector Tobacco (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 “PMs”) 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 and Vector Tobacco 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 PMs. 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 PM 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 PMs from licensing third parties to advertise tobacco brand names in any manner prohibited under the MSA; and prohibits PMs 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 PMs 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 PMs. 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, PMs are required to make annual payments of $9,000,000 (subject to applicable adjustments, offsets and reductions including a “Non-Participating Manufacturers Adjustment” or “NPM Adjustment”). 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 PM and are not the responsibility of any parent or affiliate of a PM. Liggett has no payment obligations under the MSA except to the extent its market share exceeds a market share exemption of approximately 1.65% 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 4.0% of the total cigarettes sold in the United States in 2018. 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 28, 2018, Liggett and Vector Tobacco pre-paid $132,500 of their approximate $169,000 2018 MSA obligation, the balance of which will be paid in April 2019, subject to any applicable disputes or adjustments. Certain MSA Disputes NPM Adjustment. Liggett and Vector Tobacco contend that they are entitled to an NPM Adjustment for each year from 2003 - 2017. The NPM Adjustment is a potential adjustment to annual MSA payments, available when PMs suffer a market share loss to NPMs for a particular year and an economic consulting firm selected pursuant to the MSA determines (or the parties agree) that the MSA was a “significant factor contributing to” that loss. A Settling State that has “diligently enforced” its qualifying escrow statute in the year in question may be able to avoid its allocable share of the NPM Adjustment. For 2003 - 2017, 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 either paid subject to dispute, withheld payment, or paid into a disputed payment account, the amounts associated with these NPM Adjustments. In June 2010, after the PMs prevailed in 48 of 49 motions to compel arbitration, the parties commenced the arbitration for the 2003 NPM Adjustment. That arbitration concluded in September 2013. It was followed by various challenges filed in state courts by states that did not prevail in the arbitration. Those challenges resulted in reductions, but not elimination of, the amounts awarded. The arbitration for the 2004 NPM Adjustment started in 2016, and hearings in that arbitration are underway. A separate proceeding in state court is underway for one state that is appealing an order compelling arbitration (New Mexico). The PMs have now settled most of the disputed NPM Adjustment years with 37 states representing approximately 75% of the MSA share. In January 2019, Montana sent a demand letter to the PMs seeking the return of amounts withheld or paid into the disputed payments escrow account (plus interest) for the NPM Adjustment years 2005 - 2016. Any amounts purportedly due from Liggett to Montana are immaterial. The 2004 arbitration and separate court proceedings continue for states with which the PMs have not settled. As a result of the settlements and arbitration award described above, Liggett and Vector Tobacco reduced cost of sales in the aggregate by $24,460 for years 2013 - 2017 and by an additional $8,380 for the twelve months ended December 31, 2018 . Liggett and Vector Tobacco may be entitled to further adjustments. As of December 31, 2018 , Liggett and Vector Tobacco had accrued approximately $13,400 related to the disputed amounts withheld from the non-settling states for 2004 - 2010, which may be subject to payment, with interest, if Liggett and Vector Tobacco lose the disputes for those years. As of December 31, 2018 , there remains approximately $27,300 in the disputed payments account relating to Liggett and Vector Tobacco’s 2011 - 2017 NPM Adjustment disputes with the non-settling states. 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 settlements or resolutions with United States Tobacco Company, Liggett’s payment obligations to those four states were 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. Further, the Attorneys General for Florida, Mississippi and Texas advised Liggett that they believed Liggett had failed to make payments under the respective settlement agreements with those states. In 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, with the payments from year 12 forward being subject to an inflation adjustment. In January 2016, the Attorney General for Mississippi filed a motion in Chancery Court in Jackson County, Mississippi to enforce the March 1996 settlement agreement alleging that Liggett owes Mississippi at least $27,000 in damages (including interest), and $20,000 in punitive damages and attor |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Year Ended December 31, 2018 2017 2016 Cash paid during the period for: Interest $ 107,021 $ 117,453 $ 108,422 Income taxes 26,529 26,885 46,811 Non-cash investing and financing activities: Issuance of stock dividend 671 644 609 Decrease in non-controlling interest related to purchase of subsidiary (73,953 ) — — Notes payable issued for purchase of subsidiary 30,000 — — Contingent consideration related to purchase of subsidiary 6,304 6,304,348 — — Net receivable from purchase of subsidiary 497 — — |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Ladenburg Thalmann Financial Services Inc. As of December 31, 2018 , the Company owned 15,191,205 common shares of Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS), a publicly-traded diversified financial services company engaged in independent advisory and brokerage services, asset management services, investment research, investment banking, institutional sales and trading, wholesale life insurance brokerage, annuity marketing and trust services through its subsidiaries. The Company, through its various investments in LTS, beneficially owned approximately 10.36% and accounts for its investment in LTS under the equity method of accounting. In September 2006, the Company entered into an agreement with LTS pursuant to which the Company agreed to make available to LTS the services of the Company’s Executive Vice President (the “EVP”) to serve as the President and Chief Executive Officer of LTS and to provide certain other financial, accounting and tax services, including assistance with complying with Section 404 of the Sarbanes-Oxley Act of 2002 and assistance in the preparation of income tax returns. LTS paid the Company $850 for each of 2018 , 2017 and 2016 under the agreement and pays the Company at a rate of $850 per year in 2019 . These amounts are recorded as equity income. LTS paid cash compensation to the President and Chief Executive Officer of the Company, who serves as Vice Chairman of LTS, of $1,525 , $1,425 and $1,250 for 2018 , 2017 and 2016 , respectively, and director fees of $50 , $53 and $36 for 2018 , 2017 and 2016 , respectively. LTS paid cash compensation to the Company EVP, who serves as President and CEO of LTS, of $2,025 , $1,625 and $1,450 for 2018 , 2017 and 2016 , respectively. On November 4, 2011, Vector was part of a consortium, which included Dr. Phillip Frost, who is a beneficial owner of approximately 13.9% of the Company’s common stock as of February 21, 2019 and the EVP that agreed to provide a five -year loan to LTS. Vector’s portion of the loan was $15,000 . Interest on the loan, which was due on November 4, 2016, was payable quarterly at 11% per annum and commenced on December 31, 2011. The Company recorded equity in earnings of $205 in 2016 related to the interest payments. On October 26, 2016, the Company surrendered the remaining principal amount of $1,680 of its note to pay for the exercise price of 1,000,000 LTS warrants that were exercised in full on the same date. The LTS warrants had been received in connection with the funding of the five -year loan to LTS. The Company owns 240,000 shares of LTS’s 8% Series A Cumulative Redeemable Preferred Stock (Liquidation Preference $25.00 Per Share) and recorded dividend income from the investment of $480 in each of 2018 , 2017 and 2016 . Castle Brands Inc. As of December 31, 2018 , the Company owned 12,895,018 common shares of Castle (NYSE American: ROX), a publicly-traded developer and importer of premium branded spirits. The Company accounts for its investment in Castle under the equity method. In October 2008, the Company entered into an agreement with Castle where the Company agreed to make available to Castle the services of the EVP to serve as the President and Chief Executive Officer of Castle and to provide other financial, accounting and tax services. The Company recognized management fees at a rate of $100 in each of 2018 , 2017 and 2016 , under the agreement and Castle has agreed to pay it at a rate of $100 per year in 2019 . Castle paid a retention payment of $500 in 2018 and $400 in 2017 to the EVP who serves as President and Chief Executive Officer of Castle. In 2013, the Company purchased in a private placement $200 of Castle’s convertible debt, which bore interest at 5% per annum and was converted into 223,859 shares of Castle common stock in February 2018. The Castle convertible debt was included in the ending carrying value of the Company’s equity method investment in Castle. Morgans Hotel Group Co . The Company’s President and Chief Executive Officer served as the Chairman of the Board of Directors of Morgans Hotel Group Co. (NASDAQ: MHGC) in 2015 and 2016. As of November 30, 2016, the Company beneficially owned approximately 2,459,788 ( 7.03% ) and accounted for its investment in MHGC as investment securities available for sale. On December 1, 2016, MHGC merged with another company and, as a result, the common shares of MHGC ceased to be outstanding and were converted into the right to receive $2.25 in cash. The Company received $5,535 for its investment in MHGC and recorded a gain of $2,140 , after recognizing an impairment charge of $4,772 in the first quarter of 2016. Insurance. The Company’s Chief Executive Officer, a firm in which he is a shareholder, and affiliates of that firm received insurance commissions aggregating approximately $247 , $249 and $247 in 2018 , 2017 and 2016 , respectively, on various insurance policies issued for the Company and its subsidiaries. Other. In addition to its investment in LTS and Castle, the Company has made investments in other entities where Dr. Frost has a relationship. Dr. Frost is a director, executive officer and/or more than 10% shareholder in these entities other than LTS. These include the following: (i) an investment in OPKO Inc. (NASDAQ: OPK); (ii) an investment in BioCardia, Inc. (OTC: BCDA); and (iii) an investment in Cocrystal Pharma, Inc. (OTCQB: COCP). Additional investments in entities where Dr. Frost has a relationship may be made in the future. In September 2012, the Company entered into an office lease (the “Lease”) with Frost Real Estate Holdings, LLC (“FREH”), an entity affiliated with Dr. Frost. The Lease is for 12,390 square feet of space in an office building in Miami, Florida. The Lease currently provides for payments of $36 per month increasing to $41 per month. The Company recorded rental expense of $450 , $415 and $380 for the years ended December 31, 2018 , 2017 and 2016 , respectively, associated with the lease. A son of the Company’s President and Chief Executive Officer is an associate broker with Douglas Elliman and he received commissions and other payments of $318 , $787 and $640 , respectively, in accordance with brokerage activities in 2018 , 2017 and 2016 , respectively. Additionally, the Company’s President and Chief Executive Officer has reserved a unit in a real estate venture for a purchase price of $8,500 |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value Measurements | INVESTMENTS AND FAIR VALUE MEASUREMENTS T he Company’s financial assets and liabilities subject to fair value measurements were as follows: Fair Value Measurements as of December 31, 2018 Description Total Quoted Prices in Active Markets for Identical Assets Total Losses Assets: Money market funds (1) $ 448,560 $ 448,560 $ — $ — Commercial paper (1) 46,062 — 46,062 — Certificates of deposit (2) 2,251 — 2,251 — Money market funds securing legal bonds (2) 535 535 — — Investment securities at fair value Equity securities at fair value Marketable equity securities 26,010 26,010 — — Mutual funds invested in fixed-income securities 21,192 21,192 — — Total equity securities at fair value 47,202 47,202 — — Debt securities available for sale U.S. government securities 28,514 — 28,514 — Corporate securities 41,733 — 41,733 — U.S. government and federal agency 4,369 — 4,369 — Commercial mortgage-backed securities 401 — 401 — Commercial paper 5,870 — 5,870 — Index-linked U.S. bonds 2,330 — 2,330 — Foreign fixed-income securities 1,150 — 1,150 — Total debt securities available for sale 84,367 — 84,367 — Total investment securities at fair value 131,569 47,202 84,367 — Long-term investments Equity securities at fair value that qualify for the NAV practical expedient (3) 54,628 — — — Total $ 683,605 $ 496,297 $ 132,680 $ — Liabilities: Fair value of contingent liability $ 6,304 $ — $ — $ 6,304 Fair value of derivatives embedded within convertible debt 31,424 — — 31,424 Total $ 37,728 $ — $ — $ 37,728 (1) Amounts included in Cash and cash equivalents on the consolidated balance sheet, except for $2,570 that is included in current restricted assets and $3,910 that is included in non-current restricted assets. (2) Amounts included in current restricted assets and non-current restricted assets on the consolidated balance sheet. (3) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. Fair Value Measurements as of December 31, 2017 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses Assets: Money market funds (1) $ 166,915 $ 166,915 $ — $ — Commercial paper (1) 43,781 — 43,781 — Certificates of deposit (2) 2,497 — 2,497 — Bonds (2) 2,990 2,990 — — Investment securities at fair value Equity securities 44,634 44,634 — — Mutual funds invested in fixed-income securities 21,041 21,041 — — Fixed income securities U.S. government securities 28,502 — 28,502 — Corporate securities 41,329 — 41,329 — U.S. government and federal agency 4,564 — 4,564 — Commercial mortgage-backed securities 426 — 426 — Commercial paper 7,027 — 7,027 — Index-linked U.S. bonds 2,316 — 2,316 — Foreign fixed-income securities 650 — 650 — Total fixed-income securities 84,814 — 84,814 — Total investment securities at fair value 150,489 65,675 84,814 — Total $ 366,672 $ 235,580 $ 131,092 $ — Liabilities: Fair value of derivatives embedded within convertible debt $ 76,413 $ — $ — $ 76,413 Nonrecurring fair value measurements Long-term investments (3) $ 4,475 $ 4,475 $ (525 ) $ 4,475 $ 4,475 $ (525 ) (1) Amounts included in Cash and cash equivalents on the consolidated balance sheet. (2) Amounts included in current restricted assets and non-current restricted assets on the consolidated balance sheet. (3) Long-term investments with a carrying amount of $5,000 were written down to their fair value of $4,475 , resulting in an impairment charge of $525 , which was included in earnings. The fair value of the Level 2 certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is the rate offered by the financial institution. The fair value of investment securities at fair value included in Level 1 is based on quoted market prices from various stock exchanges. The Level 2 investment securities at fair value are based on quoted market prices of securities that are thinly traded, quoted prices for identical or similar assets in markets that are not active or inputs other than quoted prices such as interest rates and yield curves. The Level 2 long-term investments are based on NAV per share provided by the partnerships based on the indicated market value of the underlying assets or investment portfolio. The fair value of derivatives embedded within convertible debt was derived using a valuation model. These derivatives 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 credit spread of the 5.5% Convertible Notes due 2020 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 consolidated statements of operations. The value of the embedded derivatives is contingent 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 5.5% 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 fair value of the Level 3 contingent liability was derived using a Monte Carlo valuation model. As part of the acquisition of the 29.41% non-controlling interest in Douglas Elliman, New Valley entered into a four-year payout agreement that requires it to pay the sellers a portion of the fair value in excess of the purchase price of Douglas Elliman should a sale of a controlling interest in Douglas Elliman occur. The contingent consideration liability is recorded within “ Other liabilities ” in the consolidated balance sheet, and any change in fair value will be recorded in “ Other, net ” within the consolidated statements of operations. The value of the contingent liability is calculated using the outstanding payable owed to the sellers and the estimated fair value of Douglas Elliman. The liability is contingent upon the sale of a controlling interest in Douglas Elliman by the Company prior to October 1, 2022. The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2018 : Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, Valuation Technique Unobservable Input Range (Actual) Fair value of derivatives embedded within convertible debt $ 31,424 Discounted cash flow Assumed annual stock dividend 5 % Assumed annual cash dividend $ 1.60 Stock price $ 9.73 Convertible trading price (as a percentage of par value) 100.31 % Maturity April 15, 2020 Volatility 20.39 % Risk-free rate Term structure of US Treasury Securities Implied credit spread 8.0% - 9.0% (8.5%) Fair value of contingent liability $ 6,304 Monte Carlo simulation model Estimated fair value of the Douglas Elliman reporting unit $ 320,000 Risk-free rate for a 4-year term 2.45 % Leverage-adjusted equity volatility of peer firms 30.22 % The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2017 : Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, Valuation Technique Unobservable Input Range (Actual) Fair value of derivatives embedded within convertible debt $ 76,413 Discounted cash flow Assumed annual stock dividend 5 % Assumed annual cash dividend $ 1.60 Stock price $ 22.38 Convertible trading price (as a percentage of par value) 115.19 % Volatility 17.98 % Risk-free rate Term structure of US Treasury Securities Implied credit spread 3.0% - 4.0% (3.5%) (1) Amount has not been adjusted to give effect to the stock dividend in 2018 . 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. The Company had no nonrecurring nonfinancial assets subject to fair value measurements as of December 31, 2018 and 2017 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company’s business segments 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, which includes Douglas Elliman, Escena, Sagaponack and investments in real estate ventures. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. As a result of the reduction in e-cigarette activities, results from the Company’s e-cigarette operations are now included in the Corporate and Other Segment and 2016 and 2017 information has been recast to conform to the 2018 presentation. This change did not have an impact to the Company’s historical consolidated results. Financial information for the Company’s operations before taxes and non-controlling interests for the years ended December 31, 2018 , 2017 and 2016 follows: Real Corporate Tobacco Estate and Other Total 2018 Revenues $ 1,111,094 $ 759,168 $ — $ 1,870,262 Operating income (loss) 246,527 (1) 3,435 (4) (25,913 ) 224,049 Equity in earnings from real estate ventures — 14,446 — 14,446 Identifiable assets 315,706 539,828 (5) 693,970 (6) 1,549,504 Depreciation and amortization 8,210 9,580 1,017 18,807 Capital expenditures 4,599 13,061 22 17,682 2017 Revenues $ 1,080,950 $ 727,364 $ (838 ) $ 1,807,476 Operating income (loss) 240,400 (2) 21,439 (26,191 ) 235,648 Equity in earnings from real estate ventures — 21,395 — 21,395 Identifiable assets 309,316 558,776 (5) 460,186 (6) 1,328,278 Depreciation and amortization 8,826 8,511 1,277 18,614 Capital expenditures 3,705 16,129 35 19,869 2016 Revenues $ 1,011,620 $ 680,105 $ (776 ) $ 1,690,949 Operating income (loss) 237,524 (3) 23,001 (26,020 ) 234,505 Equity in earnings from real estate ventures — 5,200 — 5,200 Identifiable assets 328,349 573,350 (5) 502,336 (6) 1,404,035 Depreciation and amortization 10,224 10,485 1,650 22,359 Capital expenditures 6,445 20,160 86 26,691 _____________________________ (1) Operating income includes $6,298 of income from MSA Settlement, and $685 of litigation judgment expense. (2) Operating income includes $2,721 of income from MSA Settlement and $6,591 of litigation judgment expense. (3) Operating income includes $247 of expense from MSA Settlement, $20,000 of litigation settlement and judgment expense, $41 of restructuring expense. (4) Operating income includes $2,469 of litigation judgment income. (5) Includes real estate investments accounted for under the equity method of accounting of $141,105 , $188,131 and $221,258 as of December 31, 2018 , 2017 and 2016 , respectively. (6) Corporate and Other identifiable assets primarily includes cash of $474,974 , investment securities of $131,569 , equity securities at fair value that qualify for the NAV practical expedient of $54,628 , and equity-method investments of $11,631 as of December 31, 2018 . Corporate and other identifiable assets primarily includes cash of $195,053 , investment securities of $150,489 , long-term investments accounted at cost of $65,450 , and long-term investments accounted for under the equity method of accounting of $15,841 as of December 31, 2017 . Corporate and other identifiable assets primarily includes cash of $280,691 , investment securities of $156,903 , long-term investments accounted at cost of $34,975 , and long-term investments accounted for under the equity method of accounting of $17,721 as of December 31, 2016 |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (Unaudited) | QUARTERLY FINANCIAL RESULTS (UNAUDITED) Unaudited quarterly data for the years ended December 31, 2018 and 2017 are as follows: December 31, September 30, June 30, March 31, 2018 2018 2018 2018 Revenues $ 445,939 $ 513,869 $ 481,488 $ 428,966 Gross Profit 140,798 153,567 148,722 134,691 Operating income 48,086 66,018 61,861 48,084 Net income 20,319 15,028 18,996 3,664 Net income applicable to common shares attributed to Vector Group Ltd. 21,074 12,002 17,818 7,211 Per basic common share (1) : Net income applicable to common shares attributed to Vector Group Ltd. $ 0.14 $ 0.07 $ 0.12 $ 0.04 Per diluted common share (1) : Net income applicable to common shares attributed to Vector Group Ltd. $ 0.14 $ 0.07 $ 0.12 $ 0.04 _____________________________ (1) Per share computations include the impact of a 5% stock dividend paid on September 27, 2018 . Quarterly basic and diluted net income per common share were computed independently for each quarter and do not necessarily total to the year to date basic and diluted net income per common share. December 31, September 30, June 30, March 31, 2017 2017 2017 2017 Revenues $ 435,654 $ 484,625 $ 471,989 $ 415,208 Gross Profit 136,541 146,509 157,095 139,285 Operating income 48,204 59,723 74,300 53,421 Net income (loss) 42,951 20,478 31,546 (4,225 ) Net income (loss) applicable to common shares attributed to Vector Group Ltd. 42,724 19,264 26,811 (4,227 ) Per basic common share (1): Net income (loss) applicable to common shares attributed to Vector Group Ltd. $ 0.30 $ 0.13 $ 0.18 $ (0.04 ) Per diluted common share (1): Net income (loss) applicable to common shares attributed to Vector Group Ltd. $ 0.26 $ 0.13 $ 0.18 $ (0.04 ) _____________________________ (1) Per share computations include the impact of a 5% |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION The condensed consolidating financial information is based upon the following subsidiaries being subsidiary guarantors of unsecured debt securities that may be issued by the Company: VGR Holding LLC; Liggett Group LLC; Liggett Vector Brands LLC; Vector Research LLC; Vector Tobacco Inc.; Liggett & Myers Holdings Inc.; 100 Maple LLC; V.T. Aviation LLC; VGR Aviation LLC; Eve Holdings LLC; Zoom E-Cigs LLC; and DER Holdings LLC. Each of the subsidiary guarantors is 100% owned, directly or indirectly, by the Company, and all guarantees are full and unconditional and joint and several. The Company’s investments in its consolidated subsidiaries are presented under the equity method of accounting. The Company and the guarantors contemplate filing a shelf registration statement in the future for the offering of debt securities on a delayed or continuous basis and the Company is including this condensed consolidating financial information in contemplation thereof. Any such debt securities may be issued by the Company and guaranteed by the guarantors, but any such debt securities would not be guaranteed by any of the Company’s other subsidiaries, including those subsidiaries other than DER Holdings LLC that are engaged in the real estate businesses conducted through its subsidiary New Valley. Presented herein are Condensed Consolidating Balance Sheets as of December 31, 2018 and 2017 , the related Condensed Consolidating Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 , and the related Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2018 , 2017 and 2016 December 31, 2018 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. ASSETS: Current assets: Cash and cash equivalents $ 474,880 $ 23,308 $ 86,393 $ — $ 584,581 Investment securities at fair value 131,569 — — — 131,569 Accounts receivable - trade, net — 15,440 18,806 — 34,246 Intercompany receivables 38,391 — — (38,391 ) — Inventories — 90,997 — — 90,997 Income taxes receivable, net — — 1,268 (1,268 ) — Restricted assets — 1,124 3,353 — 4,477 Other current assets 1,500 6,475 18,376 — 26,351 Total current assets 646,340 137,344 128,196 (39,659 ) 872,221 Property, plant and equipment, net 506 38,562 47,668 — 86,736 Investments in real estate, net — — 26,220 — 26,220 Long-term investments (of which $54,628 were carried at fair value) 66,259 — — — 66,259 Investments in real estate ventures — — 141,105 — 141,105 Investments in consolidated subsidiaries 431,288 252,113 — (683,401 ) — Restricted assets 1,495 901 3,910 — 6,306 Goodwill and other intangible assets, net — 107,511 159,100 — 266,611 Prepaid pension costs — 23,869 — — 23,869 Other assets 13,121 13,384 33,672 — 60,177 Total assets $ 1,159,009 $ 573,684 $ 539,871 $ (723,060 ) $ 1,549,504 LIABILITIES AND STOCKHOLDERS' DEFICIENCY: Current liabilities: Current portion of notes payable and long-term debt $ 226,343 $ 29,480 $ 311 $ — $ 256,134 Current portion of fair value of derivatives embedded within convertible debt 6,635 — — — 6,635 Current portion of employee benefits — 875 — — 875 Intercompany payables — 479 37,912 (38,391 ) — Income taxes payable, net 5,257 1,263 — (1,268 ) 5,252 Litigation accruals and current payments due under the Master Settlement Agreement — 36,871 — — 36,871 Other current liabilities 55,915 72,094 51,144 — 179,153 Total current liabilities 294,150 141,062 89,367 (39,659 ) 484,920 Notes payable, long-term debt and other obligations, less current portion 1,354,219 2,349 30,129 — 1,386,697 Fair value of derivatives embedded within convertible debt 24,789 — — — 24,789 Non-current employee benefits 45,615 15,673 — — 61,288 Deferred income taxes, net (13,084 ) 17,732 32,763 — 37,411 Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement 1,379 38,179 62,207 — 101,765 Total liabilities 1,707,068 214,995 214,466 (39,659 ) 2,096,870 Commitments and contingencies Stockholders' (deficiency) equity attributed to Vector Group Ltd. (548,059 ) 358,689 324,712 (683,401 ) (548,059 ) Non-controlling interest — — 693 — 693 Total stockholders' (deficiency) equity (548,059 ) 358,689 325,405 (683,401 ) (547,366 ) Total liabilities and stockholders' deficiency $ 1,159,009 $ 573,684 $ 539,871 $ (723,060 ) $ 1,549,504 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2017 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. ASSETS: Current assets: Cash and cash equivalents $ 194,719 $ 17,141 $ 89,493 $ — $ 301,353 Investment securities at fair value 121,282 29,207 — — 150,489 Accounts receivable - trade, net — 15,736 13,745 — 29,481 Intercompany receivables 29,541 — — (29,541 ) — Inventories — 89,790 — — 89,790 Income taxes receivable, net 22,661 — — (11,444 ) 11,217 Restricted assets — 3,052 7,206 — 10,258 Other current assets 20,549 3,429 17,151 (20,008 ) 21,121 Total current assets 388,752 158,355 127,595 (60,993 ) 613,709 Property, plant and equipment, net 696 42,493 42,327 — 85,516 Investments in real estate, net — — 23,952 — 23,952 Long-term investments (of which $0 were carried at fair value) 81,291 — — — 81,291 Investments in real estate ventures — — 188,131 — 188,131 Investments in consolidated subsidiaries 469,436 — — (469,436 ) — Restricted assets 1,501 1,987 — — 3,488 Goodwill and other intangible assets,net — 107,511 160,197 — 267,708 Prepaid pension costs — 27,697 — — 27,697 Other assets 7,843 12,355 16,588 — 36,786 Total assets $ 949,519 $ 350,398 $ 558,790 $ (530,429 ) $ 1,328,278 LIABILITIES AND STOCKHOLDERS' DEFICIENCY: Current liabilities: Current portion of notes payable and long-term debt $ — $ 53,540 $ 288 $ (20,008 ) $ 33,820 Current portion of employee benefits — 952 — — 952 Intercompany payables — 449 29,092 (29,541 ) — Income taxes payable, net — 11,542 2 (11,444 ) 100 Litigation accruals and current payments due under the Master Settlement Agreement — 12,644 — — 12,644 Other current liabilities 49,088 62,353 45,682 — 157,123 Total current liabilities 49,088 141,480 75,064 (60,993 ) 204,639 Notes payable, long-term debt and other obligations, less current portion 1,190,333 3,448 463 — 1,194,244 Fair value of derivatives embedded within convertible debt 76,413 — — — 76,413 Non-current employee benefits 45,442 16,800 — — 62,242 Deferred income taxes, net 695 26,459 31,647 — 58,801 Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement 1,467 41,315 20,917 — 63,699 Total liabilities 1,363,438 229,502 128,091 (60,993 ) 1,660,038 Commitments and contingencies Stockholders' (deficiency) equity attributed to Vector Group Ltd. (413,919 ) 120,896 348,540 (469,436 ) (413,919 ) Non-controlling interest — — 82,159 — 82,159 Total stockholders' (deficiency) equity (413,919 ) 120,896 430,699 (469,436 ) (331,760 ) Total liabilities and stockholders' deficiency $ 949,519 $ 350,398 $ 558,790 $ (530,429 ) $ 1,328,278 Year Ended December 31, 2018 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Revenues $ — $ 1,111,572 $ 759,168 $ (478 ) $ 1,870,262 Expenses: Cost of sales — 787,251 505,233 — 1,292,484 Operating, selling, administrative and general expenses 35,332 66,781 253,878 (478 ) 355,513 Litigation settlement and judgment expense (income) — 685 (2,469 ) — (1,784 ) Management fee expense — 11,509 — (11,509 ) — Operating (loss) income (35,332 ) 245,346 2,526 11,509 224,049 Other income (expenses): Interest expense (200,916 ) (2,797 ) (67 ) — (203,780 ) Change in fair value of derivatives embedded within convertible debt 44,989 — — — 44,989 Loss on extinguishment of debt (4,066 ) — — — (4,066 ) Equity in earnings from real estate ventures — — 14,446 — 14,446 Equity in earnings from investments 3,158 — — — 3,158 Net losses recognized on investment securities (4,965 ) (4,605 ) — — (9,570 ) Equity in earnings in consolidated subsidiaries 195,582 3,669 — (199,251 ) — Management fee income 11,509 — — (11,509 ) — Other, net 5,000 3,608 1,725 — 10,333 Income before provision for income taxes 14,959 245,221 18,630 (199,251 ) 79,559 Income tax benefit (expense) 43,146 (60,749 ) (3,949 ) — (21,552 ) Net income 58,105 184,472 14,681 (199,251 ) 58,007 Net loss attributed to non-controlling interest — — 98 — 98 Net income attributed to Vector Group Ltd. $ 58,105 $ 184,472 $ 14,779 $ (199,251 ) $ 58,105 Comprehensive loss attributed to non-controlling interest $ — $ — $ 98 $ — $ 98 Comprehensive income attributed to Vector Group Ltd. $ 56,730 $ 181,041 $ 14,779 $ (195,820 ) $ 56,730 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2017 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Revenues $ — $ 1,080,590 $ 727,364 $ (478 ) $ 1,807,476 Expenses: Cost of sales — 750,768 477,278 — 1,228,046 Operating, selling, administrative and general expenses 34,790 74,107 228,772 (478 ) 337,191 Litigation settlement and judgment expense — 6,591 — — 6,591 Management fee expense — 11,069 — (11,069 ) — Operating (loss) income (34,790 ) 238,055 21,314 11,069 235,648 Other income (expenses): Interest expense (169,910 ) (3,740 ) (35 ) — (173,685 ) Change in fair value of derivatives embedded within convertible debt 35,919 — — — 35,919 Loss on extinguishment of debt (34,110 ) — — — (34,110 ) Equity in earnings from real estate ventures — — 21,395 — 21,395 Equity in losses from investments (729 ) (36 ) — — (765 ) Net losses recognized on investment securities (625 ) — (35 ) — (660 ) Equity in earnings in consolidated subsidiaries 200,480 15,077 — (215,557 ) — Management fee income 11,069 — — (11,069 ) — Other, net 1,930 2,137 1,359 — 5,426 Income before provision for income taxes 9,234 251,493 43,998 (215,557 ) 89,168 Income tax benefit (expense) 75,338 (73,546 ) (210 ) — 1,582 Net income 84,572 177,947 43,788 (215,557 ) 90,750 Net income attributed to non-controlling interest — — (6,178 ) — (6,178 ) Net income attributed to Vector Group Ltd. $ 84,572 $ 177,947 $ 37,610 $ (215,557 ) $ 84,572 Comprehensive income attributed to non-controlling interest $ — $ — $ (6,178 ) $ — $ (6,178 ) Comprehensive income attributed to Vector Group Ltd. $ 83,246 $ 161,577 $ 37,610 $ (199,187 ) $ 83,246 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2016 Parent/ Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Consolidating Adjustments Consolidated Vector Group Ltd. Revenues $ — $ 1,011,322 $ 680,105 $ (478 ) $ 1,690,949 Expenses: Cost of sales — 672,515 424,829 — 1,097,344 Operating, selling, administrative and general expenses 33,964 73,129 232,444 (478 ) 339,059 Litigation settlement and judgment expense — 20,000 — — 20,000 Restructuring charges — 41 — — 41 Management fee expense — 10,649 — (10,649 ) — Operating (loss) income (33,964 ) 234,988 22,832 10,649 234,505 Other income (expenses): Interest expense (139,524 ) (3,438 ) (20 ) — (142,982 ) Changes in fair value of derivatives embedded within convertible debt 31,710 — — — 31,710 Equity in earnings from real estate ventures — — 5,200 — 5,200 Net losses recognized on investment securities (855 ) (2,632 ) — — (3,487 ) Equity in losses from investments (2,664 ) (90 ) — — (2,754 ) Equity in earnings in consolidated subsidiaries 161,471 14,872 — (176,343 ) — Management fee income 10,649 — — (10,649 ) — Other, net 1,124 2,174 939 — 4,237 Income before provision for income taxes 27,947 245,874 28,951 (176,343 ) 126,429 Income tax benefit (expense) 43,180 (83,008 ) (9,335 ) — (49,163 ) Net income 71,127 162,866 19,616 (176,343 ) 77,266 Net income attributed to non-controlling interest — — (6,139 ) — (6,139 ) Net income attributed to Vector Group Ltd. $ 71,127 $ 162,866 $ 13,477 $ (176,343 ) $ 71,127 Comprehensive income attributed to non-controlling interest $ — $ — $ (6,139 ) $ — $ (6,139 ) Comprehensive income attributed to Vector Group Ltd. $ 68,195 $ 146,841 $ 13,477 $ (160,318 ) $ 68,195 Year Ended December 31, 2018 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Net cash provided by operating activities $ 188,568 $ 204,638 $ 36,719 $ (248,091 ) $ 181,834 Cash flows from investing activities: Sale of investment securities 14,673 3,955 — — 18,628 Maturities of investment securities 24,719 — — — 24,719 Purchase of investment securities (34,445 ) — — — (34,445 ) Proceeds from sale or liquidation of long-term investments 19,487 — — — 19,487 Purchase of long-term investments (415 ) — — — (415 ) Investments in real estate ventures — — (9,728 ) — (9,728 ) Distributions from real estate ventures — — 54,233 — 54,233 Increase in cash surrender value of life insurance policies (280 ) (484 ) — — (764 ) Decrease in restricted assets 6 520 — — 526 Issuance of notes receivable — — (450 ) — (450 ) Investments in subsidiaries (17,224 ) — (10,000 ) 27,224 — Proceeds from sale of fixed assets — 9 — — 9 Cash acquired in purchase of subsidiaries — — 654 — 654 Purchase of subsidiaries — (10,000 ) (404 ) — (10,404 ) Repayment of notes receivable 20,000 — 67 (20,000 ) 67 Capital expenditures (22 ) (4,599 ) (13,061 ) — (17,682 ) Investments in real estate, net — — (2,583 ) — (2,583 ) Pay downs of investment securities 1,611 — — — 1,611 Net cash provided by (used in) investing activities 28,110 (10,599 ) 18,728 7,224 43,463 Cash flows from financing activities: Proceeds from issuance of debt 325,000 — — — 325,000 Deferred financing costs (9,400 ) — — — (9,400 ) Repayments of debt (26,750 ) (21,631 ) (308 ) 20,000 (28,689 ) Borrowings under revolver — 307,023 — — 307,023 Repayments on revolver — (310,551 ) — — (310,551 ) Capital contributions received — 10,800 16,424 (27,224 ) — Intercompany dividends paid — (176,006 ) (72,085 ) 248,091 — Dividends and distributions on common stock (225,367 ) — — — (225,367 ) Distributions to non-controlling interest — — (2,521 ) — (2,521 ) Net cash provided by (used in) financing activities 63,483 (190,365 ) (58,490 ) 240,867 55,495 Net increase (decrease) in cash, cash equivalents and restricted cash 280,161 3,674 (3,043 ) — 280,792 Cash, cash equivalents and restricted cash, beginning of period 194,719 20,175 96,043 — 310,937 Cash, cash equivalents and restricted cash, end of period $ 474,880 $ 23,849 $ 93,000 $ — $ 591,729 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Net cash provided by operating activities $ 177,259 $ 171,122 $ 59,202 $ (275,997 ) $ 131,586 Cash flows from investing activities: Sale of investment securities 28,761 — — — 28,761 Maturities of investment securities 101,097 — — — 101,097 Purchase of investment securities (132,654 ) — — — (132,654 ) Proceeds from sale or liquidation of long-term investments 500 — 466 — 966 Purchase of long-term investments (31,650 ) — (860 ) — (32,510 ) Investments in real estate ventures — — (38,807 ) — (38,807 ) Distributions from real estate ventures — — 61,718 — 61,718 Increase in cash surrender value of life insurance policies (318 ) (484 ) — — (802 ) Decrease in restricted assets 227 1,783 240 — 2,250 Issuance of notes receivable (20,000 ) — (1,633 ) 20,000 (1,633 ) Investments in subsidiaries (38,458 ) — — 38,458 — Proceeds from sale of fixed assets — 76 — — 76 Purchase of subsidiaries — — (6,569 ) — (6,569 ) Capital expenditures (35 ) (3,705 ) (16,129 ) — (19,869 ) Investments in real estate, net — — (619 ) — (619 ) Pay downs of investment securities 2,633 — — — 2,633 Net cash used in investing activities (89,897 ) (2,330 ) (2,193 ) 58,458 (35,962 ) Cash flows from financing activities: Proceeds from issuance of debt 850,000 20,000 21 (20,000 ) 850,021 Deferred financing costs (19,200 ) — — — (19,200 ) Repayments of debt (835,000 ) (1,882 ) (323 ) — (837,205 ) Borrowings under revolver — 157,630 — — 157,630 Repayments on revolver — (163,474 ) — — (163,474 ) Capital contributions received — 2,400 36,058 (38,458 ) — Intercompany dividends paid — (182,975 ) (93,022 ) 275,997 — Dividends and distributions on common stock (211,488 ) — — — (211,488 ) Distributions to non-controlling interest — — (2,779 ) — (2,779 ) Proceeds from the issuance of Vector stock 43,230 — — — 43,230 Net cash used in financing activities (172,458 ) (168,301 ) (60,045 ) 217,539 (183,265 ) Net (decrease) increase in cash, cash equivalents and restricted cash (85,096 ) 491 (3,036 ) — (87,641 ) Cash, cash equivalents and restricted cash, beginning of period 279,815 19,684 99,079 — 398,578 Cash, cash equivalents and restricted cash, end of period $ 194,719 $ 20,175 $ 96,043 $ — $ 310,937 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2016 Parent/ Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Consolidating Adjustments Consolidated Vector Group Ltd. Net cash provided by operating activities $ 135,820 $ 139,824 $ 60,640 $ (238,648 ) $ 97,636 Cash flows from investing activities: Sale of investment securities 105,815 10,255 — — 116,070 Maturities of investment securities 10,822 — — — 10,822 Purchase of investment securities (117,211 ) — — (117,211 ) Proceeds from sale or liquidation of long-term investments 4,552 — — 4,552 Purchase of long-term investments — (50 ) — (50 ) Investments in real estate ventures — — (44,107 ) — (44,107 ) Distributions from real estate ventures — — 33,204 — 33,204 Increase in cash surrender value of life insurance policies — (484 ) — — (484 ) (Increase) decrease in restricted assets (15 ) 1,177 (752 ) — 410 Proceeds from sale of fixed assets — 32 13 — 45 Purchase of subsidiaries — — (250 ) — (250 ) Repayment of notes receivable — — 4,410 — 4,410 Investments in subsidiaries (19,219 ) — — 19,219 — Capital expenditures (86 ) (6,445 ) (20,160 ) — (26,691 ) Investments in real estate, net — — (245 ) — (245 ) Pay downs of investment securities 9,212 — — — 9,212 Net cash used in (provided by) investing activities (6,130 ) 4,535 (27,937 ) 19,219 (10,313 ) Cash flows from financing activities: Proceeds from issuance of debt 243,225 395 — 243,620 Repayments of debt — (5,226 ) (139 ) — (5,365 ) Deferred financing costs (6,600 ) — — (6,600 ) Borrowings under revolver — 144,294 — — 144,294 Repayments on revolver — (110,614 ) — — (110,614 ) Capital contributions received — 2,800 16,419 (19,219 ) — Intercompany dividends paid — (181,709 ) (56,939 ) 238,648 — Dividends and distributions on common stock (198,947 ) — — — (198,947 ) Distributions to non-controlling interest — — (11,545 ) — (11,545 ) Contributions from non-controlling interest — — 248 — 248 Proceeds from exercise of Vector options 398 — — 398 Tax benefit of options exercised 579 — 579 Net cash provided by (used in) financing activities 38,655 (150,455 ) (51,561 ) 219,429 56,068 Net increase (decrease) in cash and cash equivalents 168,345 (6,096 ) (18,858 ) — 143,391 Cash, cash equivalents and restricted cash, beginning of period 111,470 25,780 117,937 — 255,187 Cash, cash equivalents and restricted cash, end of period $ 279,815 $ 19,684 $ 99,079 $ — $ 398,578 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | VECTOR GROUP LTD. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (Dollars in Thousands) Description Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions Balance at End of Period Year Ended December 31, 2018 Allowances for: Doubtful accounts $ 33 $ 429 $ 13 $ 449 Cash discounts 365 28,154 28,202 317 Deferred tax valuation allowance 3,664 153 — 3,817 Sales returns 5,632 4,700 (1) 3,397 6,935 Total $ 9,694 $ 33,436 $ 31,612 $ 11,518 Year Ended December 31, 2017 Allowances for: Doubtful accounts $ 88 $ 63 $ 118 $ 33 Cash discounts 273 27,685 27,593 365 Deferred tax valuation allowance 4,439 — 775 3,664 Sales returns 6,558 3,070 3,996 5,632 Total $ 11,358 $ 30,818 $ 32,482 $ 9,694 Year Ended December 31, 2016 Allowances for: Doubtful accounts $ 112 $ — $ 24 $ 88 Cash discounts 367 25,237 25,331 273 Deferred tax valuation allowance 3,900 539 — 4,439 Sales returns 7,822 4,962 6,226 6,558 Total $ 12,201 $ 30,738 $ 31,581 $ 11,358 _____________________________ (1) Includes $2,525 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation : The consolidated financial statements of Vector Group Ltd. (the “Company” or “Vector”) include the accounts of Liggett Group LLC (“Liggett”), Vector Tobacco Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), 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. |
Estimates and Assumptions | Estimates and Assumptions : |
Cash and Cash Equivalents | Cash and Cash Equivalents : Cash includes cash on hand, cash on deposit in banks, and money market accounts. Cash equivalents is comprised of short-term investments which have an original maturity of 90 days or less. Interest on short-term investments is recognized when earned. The Company places its cash and cash equivalents with large commercial banks. The Federal Deposit Insurance Corporation and Securities Investor Protection Corporation insure these balances, up to $250 and $500 , respectively. Substantially all of the Company’s cash balances at December 31, 2018 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | Reconciliation of Cash, Cash Equivalents and Restricted Cash: Restricted cash amounts included in current restricted assets and non-current restricted assets represent cash and cash equivalents required to be deposited into escrow for bonds required to appeal adverse product liability judgments, amounts required for letters of credit related to office leases, and certain deposit requirements for banking arrangements. The restrictions related to the appellate bonds will remain in place until the appeal process has been completed. The restrictions related to the letters of credit will remain in place for the duration of the respective lease. The restrictions related to the banking arrangements will remain in place for the duration of the arrangement. |
Investment Securities | Investment Securities : The Company classifies investments in debt securities as available for sale. Investments classified as available for sale are carried at fair value, with net unrealized gains and losses included as a separate component of stockholders’ deficiency. The cost of securities sold is determined based on average cost. Gains are recognized when realized in the Company’s consolidated statements of operations. Losses are recognized as realized or upon the determination of the occurrence of an other-than-temporary decline in fair value. The Company’s policy is to review its securities on a periodic basis to evaluate whether any security has experienced an other-than-temporary decline in fair value. If it is determined that an other-than-temporary decline exists in one of the Company’s debt securities, it is the Company’s policy to record an impairment charge with respect to such investment in the Company’s consolidated statements of operations. On January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which changed the accounting treatment for the Company’s marketable equity securities from equity securities available for sale to equity securities at fair value. Under the new guidance, the Company’s marketable equity securities are now measured at fair value with changes in fair value recognized in net income. Gains and losses are recognized when realized in the Company’s consolidated statements of operations. Investments in marketable equity securities represent less than a 20 |
Significant Concentrations of Credit Risk | Significant Concentrations of Credit Risk : Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company places its temporary cash in money market securities (investment grade or better) with, what management believes, high credit quality financial institutions. Liggett’s customers are primarily wholesalers and distributors of tobacco and convenience products as well as large grocery, drug and convenience store chains. Two customers accounted for 18% and 12% of Liggett’s revenues in 2018 , and 18% and 13% in 2017 , and 16% and 14% in 2016 . Concentrations of credit risk with respect to trade receivables are generally limited due to Liggett’s large number of customers. Liggett’s two largest customers represented approximately 11% and 4% , respectively, of Liggett’s net accounts receivable at December 31, 2018 , and 7% and 5% , respectively, at December 31, 2017 |
Accounts Receivable | Accounts Receivable : Accounts receivable-trade are recorded at their net realizable value. The allowance for doubtful accounts and cash discounts was $766 and $398 at December 31, 2018 and 2017 , respectively. Uncollectible accounts are written off when the likelihood of collection is remote and when collection efforts have been abandoned. |
Inventories | Inventories : Tobacco inventories are stated at the lower of cost and net realizable value with cost determined primarily by the last-in, first-out (LIFO) method at Liggett and Vector Tobacco. Although portions of leaf tobacco inventories may not be used or sold within one year |
Property, Plant and Equipment | Property, Plant and Equipment : Property, plant and equipment are stated at cost. Property, plant and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets, which are 20 to 30 years for buildings and 3 to 10 years for machinery and equipment. Repairs and maintenance costs are charged to expense as incurred. The costs of major renewals and betterments are capitalized. The cost and related accumulated depreciation of property, plant and equipment are removed from the accounts upon retirement or other disposition and any resulting gain or loss is reflected in operations. |
Investment in Real Estate Ventures | Investments in Real Estate Ventures : In accounting for its investments in real estate ventures, the Company identified its participation in Variable Interest Entities (“VIE”), which are defined as entities in which the equity investors at risk have not provided enough equity at risk to finance its activities without additional subordinated support or the equity investors at risk (1) cannot directly or indirectly make decisions about the entity’s activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company’s interest in VIEs is primarily in the form of equity ownership. The Company examines specific criteria and uses judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights exclusive of protective rights or voting rights and level of economic disproportionality between the Company and its other partner(s). Accounting guidance requires the consolidation of VIEs in which the Company is the primary beneficiary. The guidance requires consolidation of VIEs that an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s maximum exposure to loss in its investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs which is the carrying value. The Company’s maximum exposure to loss in its investment in its consolidated VIEs is limited to its investment which is the carrying value of the investment net of the non-controlling interest. Creditors of the consolidated VIEs have no recourse to the general credit of the primary beneficiary. On a quarterly basis, the Company evaluates its investments in real estate ventures to determine if there indicators of impairment. If so, the Company further investigates to determine if an impairment has occurred and whether such impairment is considered temporary or other than temporary. The Company believes that the assessment of temporary or other-than-temporary impairment is facts-and-circumstances driven. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill from acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in the Company’s acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) the Company’s strategies for growth in sales, income and cash flows. Goodwill is tested for impairment at least annually as of October 1 and monitored for interim triggering events on an on-going basis. Other intangible assets with indefinite useful lives are not amortized, but rather, are tested for impairment at least annually. In evaluating goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, the Company considers individual factors such as macroeconomic conditions, changes in the industry and the markets in which the Company operates as well as the historical and expected future financial performance. If the Company concludes that it is more likely than not that fair value is less than its carrying value, recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of the reporting unit to the Company’s carrying amount. Fair value is determined based on an income approach and a market approach that are equally weighted. If the carrying amount of the reporting unit, including the goodwill, exceeds the fair value of the reporting unit, the second step is performed. The second step involves a comparison of the implied fair value and carrying value of the goodwill of the reporting unit. To the extent that the carrying amount exceeds the implied fair value of the goodwill, an impairment loss is recognized. To determine the implied fair value of the Company’s indefinite-lived intangible asset, trademark, it utilizes the relief-from-royalty method, pursuant to which the asset is valued by reference to the amount of royalty income it would generate if licensed in an arm’s length transaction. Under the relief-from-royalty method, similar to the discounted cash flow method, estimated net revenues expected to be generated by the asset during its life are multiplied by a benchmark royalty rate and then discounted by the estimated weighted average cost of capital associated with the asset. The resulting capitalized royalty stream is an indication of the value of owning the asset. To the extent that the carrying amount exceeds the implied fair value of the intangible asset, an impairment loss is recognized. The fair value of the intangible asset associated with the benefit under the Master Settlement Agreement (“MSA”) is calculated using discounted cash flows. This approach involves two steps: (i) estimating future cash savings due to the payment exemption under the MSA and (ii) discounting the resulting cash flow savings to determine fair value. This fair value is then compared with the carrying value of the intangible asset associated with the benefit under the MSA. To the extent that the carrying amount exceeds the implied fair value of the intangible asset, an impairment loss is recognized. |
Impairment Long-Lived Assets | Impairment of Long-Lived Assets : The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs a test for recoverability, comparing projected undiscounted cash flows to the carrying value of the asset group to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on fair value of the asset on the basis of discounted cash flow. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Additionally, the Company performs impairment reviews on its long-term investment that is classified as equity securities without readily determinable fair values that do not qualify for the net asset value (“NAV”) practical expedient. On a quarterly basis, the Company evaluates the investment to determine if there are indicators of impairment. If so, a determination is made of whether there is an impairment and if it is considered temporary or other than temporary. The assessment of temporary or other-than-temporary impairment is facts-and-circumstances driven. The impairment indicators that are taken into consideration as part of the analysis include (a) a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, (b) a significant adverse change in the regulatory, economic, or technological environment of the investee, (c) a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates, and (d) factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. |
Pension, Postretirement and Postemployment Benefit Plans | Pension, Postretirement and Postemployment Benefits Plans : The cost of providing retiree pension benefits, health care and life insurance benefits is actuarially determined and accrued over the service period of the active employee group. The Company recognizes the funded status of each defined benefit pension plan, retiree health care and other postretirement benefit plans and postemployment benefit plans on the balance sheet. (See Note 12 |
Stock Options and Awards | Stock Options and Awards : The Company accounts for employee stock compensation plans by measuring compensation cost for share-based payments at fair value at grant date. The fair value is recognized as compensation expense over the vesting period on a straight-line basis. The terms of certain stock options awarded under the 2014 Management Incentive Plan and under the 1999 Plan provide for common stock dividend equivalents (paid in cash at the same rate as paid on the common stock) with respect to the shares underlying the unvested portion of the options. The Company recognizes payments of the dividend equivalent rights on these options on the Company’s consolidated balance sheet as reductions in additional paid-in capital until fully utilized and then accumulated deficit ( $8,696 , $7,655 and $6,258 , net of income taxes, for the years ended December 31, 2018 , 2017 and 2016 |
Income Taxes | Income Taxes : The Company accounts for income taxes under the liability method and records deferred taxes for the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes as well as tax credit carryforwards and loss carryforwards. These deferred taxes are measured by applying the enacted tax rates relative to when the deferred item is expected to reverse. A valuation allowance reduces deferred tax assets when it is deemed more likely than not that some portion or all of the deferred tax assets will not be realized. A current tax provision is recorded for income taxes currently payable. The Company accounts for uncertainty in income taxes by recognizing the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. If the tax position meets the more-likely-than-not recognition threshold, the tax effect is recognized at the largest amount of the benefit that is greater than 50% likely of being realized upon ultimate settlement. The guidance requires that a liability created for unrecognized deferred tax benefits shall be presented as a liability and not combined with deferred tax liabilities or assets. The Company classifies all tax-related interest and penalties as income tax expense. |
Distributions and Dividends on Common Stock | Distributions and Dividends on Common Stock : |
Revenue Recognition | Revenue Recognition : Tobacco: Revenue from cigarette sales, which include federal excise taxes billed to customers, are recognized upon shipment of cigarettes when control has passed to the customer. Average collection terms for Tobacco sales range between three and twelve days from the time that the cigarettes are shipped to the customer. The Company records an allowance for goods estimated to be returned in other current liabilities and the associated receivable for anticipated federal excise tax refunds in other current assets on the condensed consolidated balance sheet. The allowance for returned goods is based principally on sales volumes and historical return rates. The estimated costs of sales incentives, including customer incentives and trade promotion activities, are based principally on historical experience and are accounted for as reductions in Tobacco revenue. Expected payments for sales incentives are included in other current liabilities on the Company’s condensed consolidated balance sheet. The Company accounts for shipping and handling costs as fulfillment costs as part of cost of sales. Tobacco Shipping and Handling Fees and Costs: Shipping and handling fees related to sales transactions are neither billed to customers nor recorded as revenue. Shipping and handling costs were $5,658 in 2018 , $5,012 in 2017 and $5,268 in 2016 . Shipping and handling costs related to sales transactions were part of cost of sales in 2018 after the adoption of Topic 606. The 2017 and 2016 shipping and handling costs related to sales transactions were part of operating, selling, administrative and general expenses. Real estate sales: |
Advertising | Advertising : Tobacco advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $3,672 , $3,712 and $3,397 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Real estate advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $23,424 , $19,412 and $22,835 for the years ended December 31, 2018 and 2017 and 2016 |
Comprehensive Income | Comprehensive Income : |
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. A readily determinable fair value of the embedded derivatives is not available. 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. 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 December 31, 2018 , the range of estimated fair market values of the Company’s embedded derivatives was between $31,371 and $31,519 . The Company recorded the fair market value of its embedded derivatives at the approximate midpoint of the range at $31,424 as of December 31, 2018 . At December 31, 2017 , the range of estimated fair market values of the Company’s embedded derivatives was between $76,215 and $76,874 . The Company recorded the fair market value of its embedded derivatives at the midpoint of the range at $76,413 as of December 31, 2017 . The estimated fair market value of the Company’s embedded derivatives could change significantly based on future market conditions. (See Note 10 |
Contingencies | Contingencies : 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. As discussed in Note 15 , legal proceedings covering a wide range of matters are pending or threatened in various jurisdictions against Liggett and the Company. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, except as disclosed in Note 15 : (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. |
New Accounting Pronouncements | New Accounting Pronouncements : Accounting Standards Updates (“ASU”) adopted in 2018 : In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740), Amendments Pursuant to SEC Staff Accounting Bulletin No. 118.” The ASU adds various Securities and Exchange Commission (“SEC”) paragraphs pursuant to the issuance of the December 2017 SEC Staff Accounting Bulletin No. 118 (“SAB 118”), Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which was effective immediately. The SEC issued SAB 118 to address concerns about reporting entities’ ability to timely comply with the accounting requirements to recognize all of the effects of the Tax Cuts and Jobs Act in the period of enactment. SAB 118 requires disclosure that timely determination of some or all of the income tax effects from the Tax Cuts and Jobs Act are incomplete at the time of filing the financial statements and disclosure upon completion of measurement of the effects. Additionally, the Company has accounted for the tax effects of the Tax Cuts and Jobs Act under the guidance of SAB 118. The Company has recorded the effects of the Tax Act in its consolidated financial statements as of December 31, 2018 and reflected the provisional amounts as of December 31, 2017 . In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). ASU 2017-07 provides guidance that requires an employer to report the service cost component separate from the other components of net benefit pension costs. The employer is required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement must be disclosed. The Company adopted ASU 2017-07 in 2018 using a retrospective adoption method. Other than the revised statement of operations presentation, the adoption of ASU 2017-07 did not have a material impact on the Company’s consolidated financial statements. For the years ended December 31, 2017 December 31, 2016 As Previously Reported Adoption of ASU 2017-07 As Revised As Previously Reported Adoption of ASU 2017-07 As Revised Operating, selling, administrative and general expenses $ 339,151 $ (1,960 ) $ 337,191 $ 340,567 $ (1,508 ) $ 339,059 Operating income 233,688 1,960 235,648 232,997 1,508 234,505 Other, net 7,386 (1) (1,960 ) 5,426 5,745 (1) (1,508 ) 4,237 Income before provision for income taxes 89,168 — 89,168 126,429 — 126,429 (1) Adjusted to conform to the current-year presentation for the consolidated statements of operations. Prior to these adjustments, Other, net was $7,022 and $4,732 for the years ended December 31, 2017 and 2016 , respectively. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) (“ASU 2016-18”). ASU 2016-18 provides guidance on the classification of restricted cash to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. The Company adopted ASU 2016-18 during the first quarter of 2018 using a retrospective adoption method. Other than the changes in presentation within the statement of cash flows, the adoption of ASU 2016-18 did not have a material impact on the Company’s consolidated financial statements. See Note 1. item (d) for a reconciliation of cash, cash equivalents, and restricted cash from the consolidated balance sheet to the consolidated statement of cash flows. December 31, 2017 December 31, 2016 As Previously Reported Adoption of ASU 2016-18 As Revised As Previously Reported Adoption of ASU 2018-18 As Revised (Increase) decrease in restricted assets $ (2,286 ) $ 4,536 $ 2,250 $ 10,181 $ (9,771 ) $ 410 Net cash used in investing activities (40,498 ) 4,536 (35,962 ) (542 ) (9,771 ) (10,313 ) Net (decrease) increase in cash, cash equivalents and restricted cash (92,177 ) 4,536 (87,641 ) 153,162 (9,771 ) 143,391 Cash, cash equivalents and restricted cash, beginning of period 393,530 5,048 398,578 240,368 14,819 255,187 Cash, cash equivalents and restricted cash, end of period $ 301,353 $ 9,584 $ 310,937 $ 393,530 $ 5,048 $ 398,578 In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 is intended to reduce diversity in practice on how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard provides guidance in a number of situations including, among others, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity-method investees. ASU 2016-15 also provides guidance for classifying cash receipts and payments that have aspects of more than one class of cash flows. ASU 2016-15 was effective for the Company’s fiscal year beginning January 1, 2018. Other than the changes in presentation within the statement of cash flows, the prospective adoption of ASU 2016-15 did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 does not change the core principle of the guidance stated in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-9”), instead, the amendments in this ASU are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations and whether an entity reports revenue on a gross or net basis. ASU 2016-08 had the same effective date and transition requirements as the new revenue standard issued in ASU 2014-09. In May 2014, the FASB issued ASU 2014-09. The new revenue standard outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new revenue standard contains principles to determine the measurement of revenue and timing of when it is recognized. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the provisions of this guidance on January 1, 2018 using the modified retrospective approach with a cumulative-effect adjustment to beginning stockholders’ deficiency, allocated to increases in accumulated deficit and decreases in non-controlling interest as of January 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented. See Note 2 - Revenue Recognition, for additional accounting policy and transition disclosures. In January 2016, the FASB issued ASU 2016-01, which modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10) (“ASU 2018-03”), which amends the guidance in ASU 2016-01 by replacing the cost method of accounting for non-marketable equity securities with a model for recognizing impairments and observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company adopted the new guidance during the first quarter of 2018 using a modified-retrospective method for equity securities measured at fair value and early adopted the amendments for equity securities without readily determinable fair values that do not qualify for the practical expedient. The adoption of the guidance resulted in a cumulative-effect adjustment that decreased beginning accumulated deficit by $14,874 . The adjustment consisted of $6,036 , net of tax related to the reclassification from accumulated other comprehensive income (“AOCI”) into accumulated deficit of the net unrealized gains and related tax impact pertaining to investment securities that were previously classified as equity securities available for sale and fixed-income securities available for sale. The net impact of $8,838 to stockholder’s deficiency related to the change in accounting treatment for equity securities previously classified as cost-method long-term investments. In March 2018, the FASB issued ASU 2018-04, Investments - Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 (“ASU 2018-04”), which incorporate into the Accounting Standards Codification (“ASC”) recent SEC guidance which was issued in order to make the relevant interpretive guidance consistent with current authoritative accounting guidance, such as Topic 321, and SEC rules and regulations. The guidance also amends and supersedes various paragraphs that contain SEC guidance in ASC 320, Investments - Debt Securities and ASC 980, Regulated Operations. The Company concurrently adopted this guidance upon the adoption of ASU 2016-01 during the first quarter of 2018. There was no additional impact on the Company’s consolidated financial statements other than those resulting from the adoption of ASU 2016-01. ASUs to be adopted in future periods : In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. The guidance requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements. In October 2018, the FASB issued ASU No. 2018-16, Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (“ASU 2018-16” ) , which amends ASC 815, Derivatives and Hedging. This ASU adds the OIS rate based on SOFR to the list of permissible benchmark rates for hedge accounting purposes. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Adoption of ASU 2018-16 will be on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The Company is currently assessing the impact the adoption of ASU 2018-16 will have on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2018-15 will have on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). ASU 2018-14 eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The ASU also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. ASU 2018-14 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. Early adoption is permitted. The adoption of ASU 2018-14 will impact financial statement disclosure with no impact on operating results. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which is designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. The ASU eliminates disclosures such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU also adds new disclosure requirements for Level 3 measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of ASU 2018-13 will impact financial statement disclosure with no impact on operating results. In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements (“ASU 2018-09”). This standard does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. For the updates effective immediately, their adoption did not have a material impact on the Company’s consolidated financial statements. The Company is currently assessing the impact of the portions of ASU 2018-09 that are effective after December 15, 2018 on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which allows for stranded tax effects in accumulated other comprehensive income resulting from the Tax Act to be reclassified to retained earnings. ASU 2018-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The amendments in ASU 2018-02 should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company intends to apply the impact to the period of adoption. The adoption of ASU 2018-02 will result in a reclassification from accumulated other comprehensive loss to accumulated deficit. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight-line basis over the term of the lease. Accounting for lessors remains largely unchanged from current U.S. GAAP. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11 “Leases (Topic 842): Targeted Improvements” (ASU 2018-11). ASU 2018-10 clarifies certain areas within ASU 2016-02. Prior to ASU 2018-11, a modified retrospective transition was required for financing or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. ASU 2018-11 allows entities an additional transition method to the existing requirements whereby an entity could adopt the provisions of ASU 2016-02 by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. ASU 2018-11 also allows a practical expedient that permits lessors to not separate non-lease components from the associated lease component if certain conditions are present. In December 2018, the FASB also issued ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, which requires lessors to exclude lessor costs paid directly to a third party by lessees from lease revenues and expenses, provides an election for lessors to exclude sales taxes and other similar taxes collected from lessees from consideration in the contract, and clarifies lessors accounting for variable payments related to lease and nonlease components. ASU 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2018-20 will be effective for the Company’s fiscal year beginning January 1, 2019 and subsequent interim periods. The Company will adopt the provisions of this guidance on January 1, 2019 using an optional transition method with a cumulative effect adjustment to the beginning balance of retained earnings in the period of adoption without restating the 2018 and 2017 financial statements for comparable amounts. The Company's current lease arrangements expire through 2033. The Company will elect to utilize the transition package of practical expedients permitted within the new standard, which among other things, allows the Company to carryforward the historical lease classification. The Company will make an accounting policy election that will exclude leases with an initial term of 12 months or less from its Consolidated Balance Sheets and will recognize those lease payments in its Consolidated Statements of Operations on a straight-line basis over the lease term. On adoption the Company currently expects to recognize right-of-use assets and corresponding liabilities ranging from $130,000 to $160,000 on its Consolidated Balance Sheet for its operating leases with terms greater than 12 months. The Company does not expect a material impact to its Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income, or its Consolidated Statements of Cash Flows. The new standard will not have a material impact on liquidity and will not have an impact on the Company’s debt-covenant compliance under its current debt agreements. These expectations may change as the Company’s assessment is finalized. The Company is in the process of evaluating changes to its business processes, systems and controls needed to support recognition and disclosure under the new standard. Further, the Company is continuing to assess any incremental disclosures that will be required in the Company’s consolidated financial statements. |
Earnings Per Share | Basic EPS is computed by dividing net income available to common stockholders attributed to Vector Group Ltd. by the weighted-average number of shares outstanding, which includes vested restricted stock.Diluted EPS includes the dilutive effect of non-vested restricted stock grants, stock options and convertible securities. Diluted EPS is computed by dividing net income available to common stockholders by the diluted weighted-average number of shares outstanding, which includes dilutive non-vested restricted stock grants, stock options and convertible securities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Components of cash, cash equivalents and restricted cash | The components of “Cash, cash equivalents and restricted cash” in the Consolidated Statement of Cash Flows were as follows: December 31, December 31, December 31, Cash and cash equivalents $ 584,581 $ 301,353 $ 393,530 Restricted cash and cash equivalents included in current restricted assets 2,697 9,081 914 Restricted cash and cash equivalents included in non-current restricted assets 4,451 503 4,134 Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows $ 591,729 $ 310,937 $ 398,578 |
Schedule of accumulated other comprehensive income (loss), net of income taxes | The components of accumulated other comprehensive loss, net of income taxes, were as follows: December 31, December 31, December 31, Net unrealized gains on investment securities available for sale, net of income taxes of $60, $3,687, and $6,272, respectively $ 108 $ 6,097 $ 9,869 Forward contracts adjustment, net of income taxes of $0, $0, and $0, respectively — — (2 ) Pension-related amounts, net of income taxes of $13,750, $13,212, and $14,491, respectively (20,090 ) (18,668 ) (21,112 ) Accumulated other comprehensive loss $ (19,982 ) $ (12,571 ) $ (11,245 ) |
Schedule of other income (loss), net | Other, net consists of: Year Ended December 31, 2018 2017 2016 Interest and dividend income $ 11,349 $ 7,391 $ 6,018 Net periodic benefit cost other than the service costs (1,020 ) (1,960 ) (1,508 ) Other income (expense) 4 (5 ) (273 ) Other, net $ 10,333 $ 5,426 $ 4,237 |
Schedule of other current liabilities | Other current liabilities consist of: December 31, 2018 December 31, 2017 Accounts payable $ 13,144 $ 18,552 Accrued promotional expenses 37,940 30,691 Accrued excise and payroll taxes payable, net 14,612 11,946 Accrued interest 38,673 33,138 Commissions payable 12,975 14,320 Accrued salaries and benefits 30,228 29,639 Allowance for sales returns 6,935 5,632 Other current liabilities 24,646 13,205 Total other current liabilities $ 179,153 $ 157,123 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of new accounting pronouncements | The following tables summarize the impacts of Topic 606 adoption on the Company’s condensed consolidated balance sheet as of January 1, 2018. As Previously Reported Adjustments As Revised December 31, 2017 Tobacco Real Estate January 1, 2018 ASSETS: Accounts receivable - trade, net $ 29,481 $ — $ 4,514 (2) $ 33,995 Other current assets 21,121 2,525 (1) 5,124 (3) 28,770 Total current assets 613,709 2,525 9,638 625,872 Other assets 36,786 — 9,512 (3) 46,298 Total assets $ 1,328,278 $ 2,525 $ 19,150 $ 1,349,953 LIABILITIES AND STOCKHOLDERS’ DEFICIENCY: Other current liabilities $ 157,123 $ 2,525 (1) $ 7,806 (2)(4) $ 167,454 Total current liabilities 204,639 2,525 7,806 214,970 Deferred income taxes, net 58,801 — (3,224 ) (5) 55,577 Other liabilities 22,380 — 27,983 (4) 50,363 Total liabilities 1,660,038 2,525 32,565 1,695,128 Accumulated deficit (414,785 ) — (8,521 ) (423,306 ) Total Vector Group Ltd. stockholders' deficiency (413,919 ) — (8,521 ) (6) (422,440 ) Non-controlling interest 82,159 — (4,894 ) (6) 77,265 Total stockholders' deficiency (331,760 ) — (13,415 ) (7) (345,175 ) Total liabilities and stockholders' deficiency $ 1,328,278 $ 2,525 $ 19,150 $ 1,349,953 (1) Adjustments to other current assets and other current liabilities for $2,525 relates to the presentation as a receivable the component of the allowance for sales returns representing the federal excise tax refunds expected for future returned product as a receivable in other current assets, which was previously presented as a reduction to the allowance for sales returns liability in other current liabilities. (2) Adjustments of $4,514 to accounts receivable and $3,139 to other current liabilities relate to commission receivables and commissions payable from the Real Estate commercial leasing contracts for which the performance obligation has been satisfied, have extended payment terms and are expected to be received and paid in the next twelve-months. (3) Adjustments of $5,124 to other current assets and $9,512 to other assets, initially reported as $623 to other current assets and $3,740 to other assets was revised during the year, represents the current and noncurrent portions, respectively, of deferred contract costs relating to direct fulfillment costs incurred in advance of the satisfaction of performance obligations for Development Marketing arrangements. (4) Adjustments of $4,667 to other current liabilities and $27,983 to other liabilities relate to the current and long term portions, respectively, of contract liabilities representing payments received from customers in advance of the performance obligations being satisfied under contracts for Real Estate development marketing. (5) Adjustment reflects the tax effect of the adoption of Topic 606 which was estimated to result in a decrease in net deferred income tax liability of $3,224 , based on a recalculation of the income tax provision using the Company’s deferred rate of approximately 27.26% . The adjustment initially reported as $5,217 was revised during the year, (6) The allocation of the net impact of the adoption of Topic 606 between accumulated deficit and non-controlling interest is based on relative ownership interest of 70.59% and 29.41% , respectively. (7) Adjustment of $13,415 to increase opening stockholders’ deficiency, initially reported as $21,695 was revised during the year, represents the cumulative impact of adopting Topic 606 which resulted in an increase to opening stockholders’ deficiency, allocated to increases in accumulated deficit and decreases in non-controlling interest as of January 1, 2018. Impacts on Financial Statements at December 31, 2018 : The following table compares the reported condensed consolidated balance sheet as of December 31, 2018 , to the pro-forma amounts had the previous guidance been in effect: As Reported Pro forma as if the previous accounting guidance were in effect Increase/(Decrease) ASSETS: Accounts receivable - trade, net $ 34,246 $ 32,196 $ 2,050 (1) Other current assets 26,351 17,085 9,266 (2)(3) Total current assets 872,221 860,905 11,316 Other assets 60,177 47,068 13,109 (3) Total assets $ 1,549,504 $ 1,525,079 $ 24,425 LIABILITIES AND STOCKHOLDERS' DEFICIENCY: Income taxes payable, net $ 5,252 $ 5,375 $ (123 ) (6) Other current liabilities 179,153 168,905 10,248 (1)(2)(4) Total current liabilities 484,920 474,795 10,125 Deferred income taxes, net 37,411 40,563 (3,152 ) (5) Other liabilities 63,588 33,143 30,445 (4) Total liabilities 2,096,870 2,059,452 37,418 Stockholders' deficiency: — Accumulated deficit (542,169 ) (533,961 ) (8,208 ) (6) Total Vector Group Ltd. stockholders' deficiency (548,059 ) (539,851 ) (8,208 ) Non-controlling interest 693 5,478 (4,785 ) (6) Total stockholders' deficiency (547,366 ) (534,373 ) (12,993 ) Total liabilities and stockholders' deficiency $ 1,549,504 $ 1,525,079 $ 24,425 (1) Adjustments of $2,050 to accounts receivable and $1,082 to other current liabilities relate to commission receivables and commissions payable from the Real Estate commercial leasing contracts for which the performance obligation has been satisfied, have extended payment terms and are expected to be received and paid in the next twelve-months. (2) Adjustments to other current assets and other current liabilities for $2,095 relate to the presentation of the component of the allowance for sales returns representing the federal excise tax refunds expected for future returned product as a receivable in other current assets, which was previously presented as a reduction to the allowance for sales returns liability in other current liabilities. (3) Adjustments of $7,171 to other current assets and $13,109 to other assets represents the current and noncurrent portions, respectively, of deferred contract costs relating to direct fulfillment costs incurred in advance of the satisfaction of performance obligations for Development Marketing arrangements. (4) Adjustments of $7,071 to other current liabilities and $30,445 to other liabilities relate to the current and long term portions, respectively, of contract liabilities representing payments received from customers in advance of the performance obligations being satisfied under contracts for Real Estate development marketing. (5) Adjustments reflect the tax effect of the adoption of Topic 606 based on a recalculation of the income tax provision using the estimated annual effective tax rate of approximately 35.49% and the Company’s deferred rate approximately 27.26% . (6) The allocation of the net impact of the adoption of Topic 606 between accumulated deficit and non-controlling interest is based on relative ownership interest of 70.59% and 29.41% , respectively. The following table compares the reported condensed consolidated statement of operations for the year ended December 31, 2018 , to the pro-forma amounts had the previous guidance been in effect: As Reported Pro forma as if the previous accounting guidance were in effect Increase/(Decrease) Revenues: Tobacco $ 1,111,094 $ 1,112,733 $ (1,639 ) Real estate 759,168 765,549 (6,381 ) Total revenues 1,870,262 1,878,282 (8,020 ) (1) Expenses: Cost of sales: Tobacco 787,251 781,163 6,088 Real estate 505,233 512,744 (7,511 ) Total cost of sales 1,292,484 1,293,907 (1,423 ) (2) Operating, selling, administrative and general expenses 355,513 362,481 (6,968 ) (3) Operating income 224,049 223,678 371 Income before provision for income taxes 79,559 79,188 371 Income tax expense 21,552 21,501 51 (4) Net income 58,007 57,687 320 Net income attributed to non-controlling interest 98 207 (109 ) Net income attributed to Vector Group Ltd. $ 58,105 $ 57,894 $ 211 Per basic common share: Net income applicable to common share attributed to Vector Group Ltd. $ 0.37 $ 0.36 Per diluted common share: Net income applicable to common share attributed to Vector Group Ltd. $ 0.37 $ 0.36 (1) The impact to revenue for the year ended December 31, 2018 was a decrease of $8,020 primarily due to $4,677 of commission revenue payments received in the current period for the Real Estate Commercial Leasing business relating to performance obligations satisfied and accrued for in prior periods under Topic 606, and $20,385 in advance commission and reimbursable services payments received in the current period for the Real Estate Development Marketing business that are deferred since they do not constitute satisfied performance obligations under Topic 606. These decreases were offset by $18,683 in revenue recognized for performance obligations satisfied in the current period. Commission payments for these businesses would have been previously recognized as revenue upon receipt. Additionally, certain incentive payments to customers of the Tobacco business, approximating $2,069 for the period, that were previously classified as operating, selling, administrative and general expenses are now classified as a reduction in revenue under Topic 606. Also, the change in federal excise tax receivable component of the sales returns reserve, approximating $430 for the period, that was previously presented as a net impact to cost of sales of the Tobacco business is now presented on a gross basis as an adjustment to revenue. (2) The impact to cost of sales was a decrease of $1,423 primarily related to the reclassification of $5,658 of Tobacco shipping and handling costs from operating, selling, administrative and general expenses to costs of sales as a result of adopting Topic 606, offset by a $7,511 decrease from the Real Estate business related primarily to commission expense payments made in the current period that relate to performance obligations satisfied and accrued for in prior periods or deferred until the performance obligation is satisfied. (3) The impact to operating, selling, administrative and general expenses was a decrease of $6,968 primarily due to: • The reclassification of $5,658 Tobacco shipping and handling costs to cost of sales, • The reclassification of $2,069 incentive payments to customers to revenue for the Tobacco business, • The deferral of $18,322 of direct costs in the Real Estate Development Marketing business related to performance obligations not satisfied as discussed above, offset by the amortization of previously deferred contract costs of $12,678 . • The reclassification of $949 of reimbursable service payments to revenue related to the Real Estate Development Marketing business. (4) The net impact of the adoption of Topic 606 was estimated to result in an increase in income taxes of $51 based on a recalculation of the income tax provision using the estimated annual effective tax rate of approximately 35.49% and the Company’s deferred tax rate of approximately 27.26% |
Disaggregation of Revenue | In the following table, revenue is disaggregated by major product line for the Tobacco segment: Year Ended December 31, 2018 2017 2016 Tobacco Segment Revenues: Core Discount Brands - Pyramid, EAGLE 20’s, Grand Prix, Liggett Select, and Eve $ 1,005,071 $ 969,796 $ 892,507 Other Brands 106,023 111,154 119,113 Total tobacco revenues $ 1,111,094 $ 1,080,950 $ 1,011,620 In the following table, revenue is disaggregated by major services line and primary geographical market for the Real Estate segment: Year Ended December 31, 2018 Total New York City Northeast Southeast West Real Estate Segment Revenues : Commission and other brokerage income $ 651,171 $ 285,325 $ 166,100 $ 99,720 $ 100,026 Development marketing 64,287 48,072 252 15,068 895 Property management income 33,350 32,635 715 — — Title fees 5,281 — 5,281 — — Total Douglas Elliman revenue 754,089 366,032 172,348 114,788 100,921 Other real estate revenues 5,079 — — — 5,079 Total real estate revenues $ 759,168 $ 366,032 $ 172,348 $ 114,788 $ 106,000 Year Ended December 31, 2017 Total New York City Northeast Southeast West Real Estate Segment Revenues : Commission and other brokerage income $ 633,093 $ 332,319 $ 168,834 $ 79,547 $ 52,393 Development marketing 52,061 37,761 402 11,211 2,687 Property management income 31,924 31,224 700 — — Title fees 5,265 — 5,265 — — Total Douglas Elliman revenue 722,343 401,304 175,201 90,758 55,080 Other real estate revenues 5,021 — — — 5,021 Total real estate revenues $ 727,364 $ 401,304 $ 175,201 $ 90,758 $ 60,101 Year Ended December 31, 2016 Total New York City Northeast Southeast West Real Estate Segment Revenues : Commission and other brokerage income $ 553,158 $ 317,397 $ 158,017 $ 58,875 $ 18,869 Development marketing 87,893 76,278 521 10,535 559 Property management income 29,883 29,241 642 — — Title fees 4,324 — 4,324 — — Total Douglas Elliman revenue 675,258 422,916 163,504 69,410 19,428 Other real estate revenues 4,847 — — — 4,847 Total real estate revenues $ 680,105 $ 422,916 $ 163,504 $ 69,410 $ 24,275 |
Contract Balances | The following table provides information about receivables, contracts assets, and contract liabilities from contracts with customers: December 31, 2018 At Adoption Receivables, which are included in accounts receivable - trade, net $ 2,050 $ 4,514 Contract costs, net, which are included in other current assets 9,264 7,217 Payables, which are included in other current liabilities 1,082 3,139 Contract liabilities, which are included in other current liabilities 7,071 4,667 Contract costs, net, which are included in other assets 15,794 12,197 Contract liabilities, which are included in other liabilities 30,445 27,983 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net income for purposes of determining basic and diluted EPS | As a result, in its calculation of basic EPS for the years ended December 31, 2018 , 2017 and 2016 , respectively, the Company has adjusted its net income for the effect of these participating securities as follows: For the year ended December 31, 2018 2017 2016 Net income attributed to Vector Group Ltd. $ 58,105 $ 84,572 $ 71,127 Income attributable to participating securities (7,016 ) (6,071 ) (2,241 ) Net income available to common stockholders attributed to Vector Group Ltd. $ 51,089 $ 78,501 $ 68,886 |
Basic and diluted EPS calculation shares | Basic and diluted EPS were calculated using the following shares for the years ended December 31, 2018 , 2017 and 2016 : For the year ended December 31, 2018 2017 2016 Weighted-average shares for basic EPS 139,392,638 139,035,240 136,745,044 Plus incremental shares related to stock options and non-vested restricted stock 116,707 271,254 251,139 Weighted-average shares for diluted EPS 139,509,345 139,306,494 136,996,183 |
Outstanding shares not included in the computation of diluted EPS | The following non-vested restricted stock and shares issuable upon the conversion of convertible debt were outstanding during the years ended December 31, 2018 , 2017 and 2016 but were not included in the computation of diluted EPS because the exercise prices of the options and the per share expense associated with the restricted stock were greater than the average market price of the common shares during the respective periods, and the impact of common shares issuable under the convertible debt were anti-dilutive to EPS. Year Ended December 31, 2018 2017 2016 Weighted-average number of shares issuable upon conversion of debt 28,773,728 28,819,626 28,819,626 Weighted-average conversion price $ 16.95 $ 16.96 $ 16.96 |
Investment Securities Availab_2
Investment Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | The components of debt securities available for sale at December 31, 2018 were as follows: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable debt securities $ 84,199 $ 168 $ — $ 84,367 December 31, 2018 Marketable equity securities $ 26,010 Mutual funds invested in fixed-income securities 21,192 Total equity securities at fair value $ 47,202 The following is a summary of unrealized and realized net losses recognized in net income on equity securities at fair value after the adoption of ASU 2016-01 for the year ended December 31, 2018 : Year Ended December 31, 2018 Net losses recognized on equity securities (1) $ (8,449 ) Less: Net losses recognized on equity securities sold (808 ) Net unrealized losses recognized on equity securities still held at the reporting date $ (7,641 ) (1) Includes $517 of net losses recognized on equity securities at fair value that qualify for the NAV practical expedient for the year ended December 31, 2018 . These equity securities are included in the “Long-term investments” line item on the consolidated balance sheet and are further discussed in Note 7 December 31, 2017 were as follows: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable equity securities $ 35,020 $ 10,994 $ (1,380 ) $ 44,634 Mutual funds invested in fixed-income securities 20,977 93 (29 ) 21,041 Marketable debt securities 84,708 106 — 84,814 Total debt and equity securities available for sale $ 140,705 $ 11,193 $ (1,409 ) $ 150,489 December 31, 2018 December 31, 2017 Debt securities available for sale $ 84,367 $ 84,814 Equity securities available for sale — 65,675 Equity securities at fair value 47,202 — Total investment securities at fair value $ 131,569 $ 150,489 Net losses recognized on investment securities were as follows: Year Ended December 31, 2018 2017 2016 Net losses recognized on equity securities (1) $ (8,449 ) $ — $ — Net (losses) gains recognized on debt securities available for sale (34 ) 2 261 Net gains recognized on equity securities available for sale (2) — 167 2,646 Impairments on debt securities available for sale (1,087 ) (390 ) (490 ) Impairments on equity securities available for sale (3) — (75 ) (4,891 ) Gains on long-term investments — 162 190 Impairments of long-term investments — (526 ) (1,203 ) Net losses recognized on investment securities $ (9,570 ) $ (660 ) $ (3,487 ) (1) Includes net losses recognized on equity securities at fair value that were classified as equity securities available for sale prior to the adoption of ASU 2016-01 in 2018 , and net losses recognized on equity securities at fair value that qualify for the NAV practical expedient, that were classified as long-term investments accounted at cost prior to the aforementioned adoption. The latter securities are included in the “Long-term investments” line item on the consolidated balance sheet and are further discussed in Note 7 . (2) Includes net gains recognized on equity securities that were classified as available for sale in 2017 and 2016 . There is no activity for 2018 because the Company adopted ASU 2016-01. (3) Includes impairments on equity securities that were classified as equity securities available for sale in 2017 and 2016 . There is no activity for 2018 |
Schedule of Maturity Dates of Fixed Income Securities | The table below summarizes the maturity dates of debt securities available for sale at December 31, 2018 . Investment Type: Fair Value Under 1 Year 1 Year up to 5 Years More than 5 Years U.S. Government securities $ 28,514 $ 14,929 $ 13,585 $ — Corporate securities 41,733 10,383 31,350 — U.S. mortgage-backed securities 4,369 802 3,567 — Commercial mortgage-backed securities 401 — 401 — Commercial paper 5,870 5,870 — — Index-linked U.S. bonds 2,330 1,569 761 — Foreign fixed-income securities 1,150 650 500 — Total debt securities available for sale by maturity dates $ 84,367 $ 34,203 $ 50,164 $ — |
Schedule of Unrealized Loss on Investments | The available-for-sale investment securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows: In loss position for Less than 12 months 12 months or more Fair Value Unrealized Losses Fair Value Unrealized Losses Total Fair Value Total Unrealized Losses December 31, 2017 Marketable equity securities $ 9,523 $ (1,380 ) $ — $ — $ 9,523 $ (1,380 ) Mutual funds invested in fixed-income securities 10,483 (29 ) — — 10,483 (29 ) $ 20,006 $ (1,409 ) $ — $ — $ 20,006 $ (1,409 ) |
Schedule of Realized Gains (Losses) | Gross realized gains and losses on debt and equity securities available for sale were as follows: Year Ended December 31, 2018 2017 2016 Gross realized gains on sales $ 4 $ 479 $ 3,408 Gross realized losses on sales (38 ) (310 ) (501 ) Net (losses) gains on sale of debt and equity securities available for sale $ (34 ) $ 169 $ 2,907 Gross realized losses on other-than-temporary impairments $ (1,087 ) $ (465 ) $ (5,381 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of: December 31, December 31, Leaf tobacco $ 42,917 $ 45,801 Other raw materials 3,750 3,272 Work-in-process 1,931 358 Finished goods 63,937 63,363 Inventories at current cost 112,535 112,794 LIFO adjustments (21,538 ) (23,004 ) $ 90,997 $ 89,790 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment consist of: December 31, December 31, Land and improvements $ 1,624 $ 1,442 Buildings 16,919 16,280 Machinery and equipment 198,649 190,983 Leasehold improvements 51,322 45,760 268,514 254,465 Less accumulated depreciation and amortization (181,778 ) (168,949 ) $ 86,736 $ 85,516 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Investments [Abstract] | |
Cost method investments | Long-term investments consisted of the following: December 31, 2018 December 31, 2017 Equity securities at fair value that qualify for the NAV practical expedient $ 54,628 $ — Investments accounted at cost — 65,450 Equity-method investments 11,631 15,841 $ 66,259 $ 81,291 December 31, 2017 Carrying Value Fair Value Investment partnerships $ 65,450 $ 74,111 $ 65,450 $ 74,111 |
Equity method investments | Equity-method investments consisted of the following: December 31, 2018 December 31, 2017 Indian Creek Investors LP (“Indian Creek”) $ 1,167 $ 4,498 Boyar Value Fund (“Boyar”) 8,384 9,026 Ladenburg Thalmann Financial Services Inc. (“LTS”) 2,080 2,317 Castle Brands, Inc. (“Castle”) — — $ 11,631 $ 15,841 December 31, 2018 December 31, 2017 Equity securities at fair value that qualify for the NAV practical expedient $ 54,628 $ — Investments accounted at cost — 65,450 Equity-method investments 11,631 15,841 $ 66,259 $ 81,291 December 31, December 31, Investment securities $ 33,830 $ 48,050 Cash and cash equivalents 521 1,719 Other assets 33 74 Total assets $ 34,384 $ 49,843 Other liabilities $ 738 $ 3,007 Total liabilities 738 3,007 Partners’ capital 33,646 46,836 Total liabilities and partners’ capital $ 34,384 $ 49,843 Year Ended December 31, 2018 2017 2016 Investment income $ 549 $ 792 $ 438 Expenses 861 690 684 Net investment (loss) gain (312 ) 102 (246 ) Total net realized (loss) gain and net change in unrealized depreciation from investments (5,781 ) 100 3,341 Net (decrease) increase in partners’ capital resulting from operations $ (6,093 ) $ 202 $ 3,095 Pursuant to Rule 4-08(g), the following summarized financial data is presented for LTS. The Company accounts for its investment in LTS using a three-month lag reporting period. September 30, September 30, Cash and cash equivalents $ 262,834 $ 100,739 Receivables from clearing brokers, note receivable and other receivable, net 165,149 139,497 Goodwill and intangible assets, net 200,199 233,007 Other assets 172,409 79,372 Total assets $ 800,591 $ 552,615 Accrued compensation, commissions and fees payable $ 141,260 $ 90,991 Accounts payable and accrued liabilities 50,122 42,895 Notes payable, net of $115 and $535 unamortized discount in 2018 and 2017, respectively 185,199 28,182 Other liabilities 37,658 31,718 Total liabilities 414,239 193,786 Preferred stock 2 2 Common stock 20 20 Additional paid-in capital 487,752 515,208 Accumulated deficit (101,467 ) (156,423 ) Total controlling shareholders’ equity 386,307 358,807 Non-controlling interest 45 22 Total shareholders’ equity 386,352 358,829 Total liabilities and shareholders’ equity $ 800,591 $ 552,615 (1) The table above presents the nature and amounts of the major components of assets and liabilities, along with information regarding redeemable stock and non-controlling interest. Twelve Months Ended September 30, 2018 2017 2016 Revenues $ 1,380,031 $ 1,221,195 $ 1,104,227 Expenses 1,345,768 1,217,331 1,119,366 Income (loss) before other items 34,263 3,864 (15,139 ) Change in fair value of contingent consideration (232 ) 48 (154 ) Income (loss) from continuing operations 34,031 3,912 (15,293 ) Net income (loss) $ 30,858 $ 1,669 $ (25,159 ) Pursuant to Rule 4-08(g), the following summarized financial data is presented for Castle. The Company accounts for its investment in Castle using a three-month lag reporting period. September 30, September 30, Current assets $ 57,047 $ 49,328 Non-current assets 8,359 8,783 Total assets $ 65,406 $ 58,111 Current liabilities $ 13,440 $ 17,586 Non-current liabilities 42,892 35,296 Total liabilities 56,332 52,882 Total controlling shareholders’ equity 4,907 2,386 Non-controlling interest 4,167 2,843 Total shareholders’ equity 9,074 5,229 Total liabilities and shareholders’ equity $ 65,406 $ 58,111 Twelve Months Ended September 30, 2018 2017 2016 Revenues $ 94,567 $ 82,636 $ 73,549 Expenses 57,083 48,257 44,236 Gross profit 37,484 34,379 29,313 Other expenses 32,769 31,404 28,338 Income from continuing operations 4,715 2,975 975 Net income (loss) $ 546 $ 1,008 $ (1,263 ) 10 Madison Square West: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 28,539 $ 197,157 $ 467,755 Cost of goods sold 24,250 116,120 248,917 Other expenses (4,236 ) 11,649 28,784 Income from continuing operations $ 8,525 $ 69,388 $ 190,054 December 31, December 31, Balance Sheets Investment in real estate $ 2,369 $ 7,908 Total assets 15,071 32,929 Total debt 3,319 30,006 Total liabilities 3,616 30,006 Non-controlling interest 10,091 2,575 1 QPS Tower: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 14,625 $ 4,216 $ (15 ) Other expenses 26,357 18,508 518 Loss from continuing operations $ (11,732 ) $ (14,292 ) $ (533 ) December 31, December 31, Balance Sheets Investment in real estate $ 215,956 $ 217,926 Total assets 220,350 229,825 Total debt 209,602 206,413 Total liabilities 212,640 211,631 Greenwich: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 28 $ (768 ) $ 815 Other expenses 146,286 2,696 2,727 Loss from continuing operations $ (146,258 ) $ (3,464 ) $ (1,912 ) December 31, December 31, Balance Sheets Investment in real estate $ 403,815 $ 374,307 Total assets 419,518 376,684 Total debt 408,779 246,244 Total liabilities 445,514 270,322 Non-controlling interest (19,064 ) 77,998 Other Condominium and Mixed Use Development: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 365,890 $ 176,306 $ 44,089 Cost of goods sold 71,623 93,766 54,103 Other expenses 44,211 47,590 13,782 Income (loss) from continuing operations $ 250,056 $ 34,950 $ (23,796 ) December 31, December 31, Balance Sheets Investment in real estate $ 2,541,994 $ 3,720,332 Total assets 2,701,652 4,178,725 Total debt 1,798,296 2,806,648 Total liabilities 2,036,431 3,028,789 Non-controlling interest 150,897 472,459 Apartment Buildings: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 44,366 $ 66,588 $ 87,225 Other expenses 105,899 64,431 83,117 (Loss) income from continuing operations $ (61,533 ) $ 2,157 $ 4,108 December 31, December 31, Balance Sheets Investment in real estate $ 558,268 $ 493,178 Total assets 574,664 507,684 Total debt 412,447 422,055 Total liabilities 420,164 639,809 Non-controlling interest 115,952 58,700 Hotels: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 171,949 $ 75,862 $ 81,517 Cost of goods sold 4,522 4,035 4,262 Other expenses 268,007 112,124 114,582 Loss from continuing operations $ (100,580 ) $ (40,297 ) $ (37,327 ) December 31, December 31, Balance Sheets Investment in real estate $ 1,019,133 $ 776,577 Total assets 1,126,598 865,070 Total debt 696,200 491,200 Total liabilities 736,101 512,252 Non-controlling interest 348,451 319,322 Commercial: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 56,773 $ 6,636 $ 8,410 Other expenses 11,647 3,294 11,195 Income (loss) from continuing operations $ 45,126 $ 3,342 $ (2,785 ) December 31, December 31, Balance Sheets Investment in real estate $ 53,193 $ 53,586 Total assets 70,395 75,289 Total debt 55,625 55,625 Total liabilities 54,645 54,524 Other: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 4,823 $ 3,442 $ 3,344 Other expenses 6,382 5,069 1,227 (Loss) income from continuing operations $ (1,559 ) $ (1,627 ) $ 2,117 December 31, December 31, Balance Sheets Investment in real estate $ 710,549 $ 824,745 Total assets 1,152,124 894,982 Total debt 658,592 470,000 Total liabilities 665,463 471,964 Non-controlling interest 392,933 356,632 |
New Valley LLC (Tables)
New Valley LLC (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Investments in real estate ventures | New Valley’s maximum exposure to loss was as follows: December 31, 2018 Condominium and Mixed Use Development: New York City SMSA $ 69,724 All other U.S. areas 43,891 113,615 Hotels: New York City SMSA 15,782 International 2,334 18,116 Commercial: New York City SMSA 1,867 All other U.S. areas 7,053 8,920 Other 32,648 Total maximum exposure to loss $ 173,299 Range of Ownership December 31, 2018 December 31, 2017 Condominium and Mixed Use Development: New York City SMSA 3.1% - 49.5% $ 65,007 (1) $ 96,386 All other U.S. areas 15.0% - 48.5% 31,392 28,763 96,399 125,149 Apartment Buildings: New York City SMSA 45.4% — (2) 10,910 All other U.S. areas 7.6% - 16.3% — 257 — 11,167 Hotels: New York City SMSA 5.2% - 18.4% 15,782 (1) 19,616 International 49.0% 2,334 2,800 18,116 22,416 Commercial: New York City SMSA 49.0% 1,867 2,437 All other U.S. areas 1.6% 7,053 15,642 8,920 18,079 Other 15.0% - 50.0% 17,670 (2) 11,320 Investments in real estate ventures $ 141,105 $ 188,131 _____________________________ (1) One New York City SMSA venture, with a carrying value of $267 , was reclassified from Condominium and Mixed Use Development to Hotels as of December 31, 2018 . (2) One New York City SMSA venture, with a carrying value of $1,783 , was reclassified from Apartment Buildings to Other as of December 31, 2018 December 31, 2018 December 31, 2017 Condominium and Mixed Use Development: New York City SMSA $ 4,135 $ 11,465 All other U.S. areas — 8,596 4,135 20,061 Apartment Buildings: New York City SMSA 975 — 975 — Hotels: New York City SMSA 168 3,068 168 3,068 Commercial: All other U.S. areas — 5,753 — 5,753 Other 4,450 9,925 Total contributions $ 9,728 $ 38,807 December 31, 2018 December 31, 2017 Condominium and Mixed Use Development: New York City SMSA $ 39,207 $ 68,600 All other U.S. areas — 20,859 39,207 89,459 Apartment Buildings: New York City SMSA 27,569 — All other U.S. areas 422 7,498 27,991 7,498 Hotels: New York City SMSA 1,542 — International 220 468 1,762 468 Commercial: New York City SMSA 9 111 All other U.S. areas 10,139 514 10,148 625 Other 1,060 1,663 Total distributions $ 80,168 $ 99,713 Year Ended December 31, 2018 2017 2016 Condominium and Mixed Use Development: New York City SMSA $ (923 ) $ 35,578 $ 7,432 All other U.S. areas (1,063 ) (2,063 ) (1,793 ) (1,986 ) 33,515 5,639 Apartment Buildings: New York City SMSA 17,467 (6,703 ) — All other U.S. areas 164 (532 ) 1,588 17,631 (7,235 ) 1,588 Hotels: New York City SMSA (2,727 ) (5,347 ) (1,884 ) International (246 ) 232 439 (2,973 ) (5,115 ) (1,445 ) Commercial: New York City SMSA (562 ) (742 ) (1,644 ) All other U.S. areas 1,608 403 — 1,046 (339 ) (1,644 ) Other 728 569 1,062 Total equity in earnings from real estate ventures $ 14,446 $ 21,395 5,200 |
Equity method investments | Equity-method investments consisted of the following: December 31, 2018 December 31, 2017 Indian Creek Investors LP (“Indian Creek”) $ 1,167 $ 4,498 Boyar Value Fund (“Boyar”) 8,384 9,026 Ladenburg Thalmann Financial Services Inc. (“LTS”) 2,080 2,317 Castle Brands, Inc. (“Castle”) — — $ 11,631 $ 15,841 December 31, 2018 December 31, 2017 Equity securities at fair value that qualify for the NAV practical expedient $ 54,628 $ — Investments accounted at cost — 65,450 Equity-method investments 11,631 15,841 $ 66,259 $ 81,291 December 31, December 31, Investment securities $ 33,830 $ 48,050 Cash and cash equivalents 521 1,719 Other assets 33 74 Total assets $ 34,384 $ 49,843 Other liabilities $ 738 $ 3,007 Total liabilities 738 3,007 Partners’ capital 33,646 46,836 Total liabilities and partners’ capital $ 34,384 $ 49,843 Year Ended December 31, 2018 2017 2016 Investment income $ 549 $ 792 $ 438 Expenses 861 690 684 Net investment (loss) gain (312 ) 102 (246 ) Total net realized (loss) gain and net change in unrealized depreciation from investments (5,781 ) 100 3,341 Net (decrease) increase in partners’ capital resulting from operations $ (6,093 ) $ 202 $ 3,095 Pursuant to Rule 4-08(g), the following summarized financial data is presented for LTS. The Company accounts for its investment in LTS using a three-month lag reporting period. September 30, September 30, Cash and cash equivalents $ 262,834 $ 100,739 Receivables from clearing brokers, note receivable and other receivable, net 165,149 139,497 Goodwill and intangible assets, net 200,199 233,007 Other assets 172,409 79,372 Total assets $ 800,591 $ 552,615 Accrued compensation, commissions and fees payable $ 141,260 $ 90,991 Accounts payable and accrued liabilities 50,122 42,895 Notes payable, net of $115 and $535 unamortized discount in 2018 and 2017, respectively 185,199 28,182 Other liabilities 37,658 31,718 Total liabilities 414,239 193,786 Preferred stock 2 2 Common stock 20 20 Additional paid-in capital 487,752 515,208 Accumulated deficit (101,467 ) (156,423 ) Total controlling shareholders’ equity 386,307 358,807 Non-controlling interest 45 22 Total shareholders’ equity 386,352 358,829 Total liabilities and shareholders’ equity $ 800,591 $ 552,615 (1) The table above presents the nature and amounts of the major components of assets and liabilities, along with information regarding redeemable stock and non-controlling interest. Twelve Months Ended September 30, 2018 2017 2016 Revenues $ 1,380,031 $ 1,221,195 $ 1,104,227 Expenses 1,345,768 1,217,331 1,119,366 Income (loss) before other items 34,263 3,864 (15,139 ) Change in fair value of contingent consideration (232 ) 48 (154 ) Income (loss) from continuing operations 34,031 3,912 (15,293 ) Net income (loss) $ 30,858 $ 1,669 $ (25,159 ) Pursuant to Rule 4-08(g), the following summarized financial data is presented for Castle. The Company accounts for its investment in Castle using a three-month lag reporting period. September 30, September 30, Current assets $ 57,047 $ 49,328 Non-current assets 8,359 8,783 Total assets $ 65,406 $ 58,111 Current liabilities $ 13,440 $ 17,586 Non-current liabilities 42,892 35,296 Total liabilities 56,332 52,882 Total controlling shareholders’ equity 4,907 2,386 Non-controlling interest 4,167 2,843 Total shareholders’ equity 9,074 5,229 Total liabilities and shareholders’ equity $ 65,406 $ 58,111 Twelve Months Ended September 30, 2018 2017 2016 Revenues $ 94,567 $ 82,636 $ 73,549 Expenses 57,083 48,257 44,236 Gross profit 37,484 34,379 29,313 Other expenses 32,769 31,404 28,338 Income from continuing operations 4,715 2,975 975 Net income (loss) $ 546 $ 1,008 $ (1,263 ) 10 Madison Square West: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 28,539 $ 197,157 $ 467,755 Cost of goods sold 24,250 116,120 248,917 Other expenses (4,236 ) 11,649 28,784 Income from continuing operations $ 8,525 $ 69,388 $ 190,054 December 31, December 31, Balance Sheets Investment in real estate $ 2,369 $ 7,908 Total assets 15,071 32,929 Total debt 3,319 30,006 Total liabilities 3,616 30,006 Non-controlling interest 10,091 2,575 1 QPS Tower: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 14,625 $ 4,216 $ (15 ) Other expenses 26,357 18,508 518 Loss from continuing operations $ (11,732 ) $ (14,292 ) $ (533 ) December 31, December 31, Balance Sheets Investment in real estate $ 215,956 $ 217,926 Total assets 220,350 229,825 Total debt 209,602 206,413 Total liabilities 212,640 211,631 Greenwich: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 28 $ (768 ) $ 815 Other expenses 146,286 2,696 2,727 Loss from continuing operations $ (146,258 ) $ (3,464 ) $ (1,912 ) December 31, December 31, Balance Sheets Investment in real estate $ 403,815 $ 374,307 Total assets 419,518 376,684 Total debt 408,779 246,244 Total liabilities 445,514 270,322 Non-controlling interest (19,064 ) 77,998 Other Condominium and Mixed Use Development: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 365,890 $ 176,306 $ 44,089 Cost of goods sold 71,623 93,766 54,103 Other expenses 44,211 47,590 13,782 Income (loss) from continuing operations $ 250,056 $ 34,950 $ (23,796 ) December 31, December 31, Balance Sheets Investment in real estate $ 2,541,994 $ 3,720,332 Total assets 2,701,652 4,178,725 Total debt 1,798,296 2,806,648 Total liabilities 2,036,431 3,028,789 Non-controlling interest 150,897 472,459 Apartment Buildings: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 44,366 $ 66,588 $ 87,225 Other expenses 105,899 64,431 83,117 (Loss) income from continuing operations $ (61,533 ) $ 2,157 $ 4,108 December 31, December 31, Balance Sheets Investment in real estate $ 558,268 $ 493,178 Total assets 574,664 507,684 Total debt 412,447 422,055 Total liabilities 420,164 639,809 Non-controlling interest 115,952 58,700 Hotels: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 171,949 $ 75,862 $ 81,517 Cost of goods sold 4,522 4,035 4,262 Other expenses 268,007 112,124 114,582 Loss from continuing operations $ (100,580 ) $ (40,297 ) $ (37,327 ) December 31, December 31, Balance Sheets Investment in real estate $ 1,019,133 $ 776,577 Total assets 1,126,598 865,070 Total debt 696,200 491,200 Total liabilities 736,101 512,252 Non-controlling interest 348,451 319,322 Commercial: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 56,773 $ 6,636 $ 8,410 Other expenses 11,647 3,294 11,195 Income (loss) from continuing operations $ 45,126 $ 3,342 $ (2,785 ) December 31, December 31, Balance Sheets Investment in real estate $ 53,193 $ 53,586 Total assets 70,395 75,289 Total debt 55,625 55,625 Total liabilities 54,645 54,524 Other: Year Ended December 31, 2018 2017 2016 Income Statement Revenue $ 4,823 $ 3,442 $ 3,344 Other expenses 6,382 5,069 1,227 (Loss) income from continuing operations $ (1,559 ) $ (1,627 ) $ 2,117 December 31, December 31, Balance Sheets Investment in real estate $ 710,549 $ 824,745 Total assets 1,152,124 894,982 Total debt 658,592 470,000 Total liabilities 665,463 471,964 Non-controlling interest 392,933 356,632 |
Investments in Real Estate, net | The components of “Investments in real estate, net” were as follows: December 31, December 31, Escena, net $ 10,170 $ 10,485 Sagaponack 16,050 13,467 Investment in real estate, net $ 26,220 $ 23,952 December 31, December 31, Land and land improvements $ 8,910 $ 8,907 Building and building improvements 1,900 1,891 Other 2,162 2,111 12,972 12,909 Less accumulated depreciation (2,802 ) (2,424 ) $ 10,170 $ 10,485 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets, net | The components of Goodwill and other intangible assets, net were as follows: December 31, December 31, Goodwill $ 77,568 $ 77,059 Indefinite life intangibles: Intangible asset associated with benefit under the MSA 107,511 107,511 Trademark - Douglas Elliman 80,000 80,000 Intangibles with a finite life, net 1,532 3,138 Total goodwill and other intangible assets, net $ 266,611 $ 267,708 |
Schedule of intangible asset and contract liabilities assumed | Other intangible assets and contract liabilities assumed were as follows: Useful Lives in Years December 31, December 31, Intangible asset associated with benefit under the MSA Indefinite $ 107,511 $ 107,511 Trademark - Douglas Elliman Indefinite 80,000 80,000 Favorable leases 1 - 10 13,444 13,444 Other intangibles 1 - 5 1,724 6,999 15,168 20,443 Less: Accumulated amortization on amortizable intangibles (13,636 ) (17,305 ) Other intangibles, net $ 1,532 $ 3,138 Contract liabilities assumed: Unfavorable leases 1 - 10 $ 4,022 $ 4,022 Less: Accumulated amortization on unfavorable leases (3,076 ) (2,706 ) Unfavorable leases, net $ 946 $ 1,316 |
Schedule of intangible asset and contract liabilities assumed | Other intangible assets and contract liabilities assumed were as follows: Useful Lives in Years December 31, December 31, Intangible asset associated with benefit under the MSA Indefinite $ 107,511 $ 107,511 Trademark - Douglas Elliman Indefinite 80,000 80,000 Favorable leases 1 - 10 13,444 13,444 Other intangibles 1 - 5 1,724 6,999 15,168 20,443 Less: Accumulated amortization on amortizable intangibles (13,636 ) (17,305 ) Other intangibles, net $ 1,532 $ 3,138 Contract liabilities assumed: Unfavorable leases 1 - 10 $ 4,022 $ 4,022 Less: Accumulated amortization on unfavorable leases (3,076 ) (2,706 ) Unfavorable leases, net $ 946 $ 1,316 |
Notes Payable, Long-Term Debt_2
Notes Payable, Long-Term Debt and Other Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Notes payable, long-term debt and other obligations | Notes payable, long-term debt and other obligations consist of: December 31, 2018 December 31, 2017 Vector: 6.125% Senior Secured Notes due 2025 $ 850,000 $ 850,000 10.5% Senior Notes due 2026 325,000 — 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $29,465 and $53,687* 202,535 205,063 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $3,359 and $69,253* 226,641 160,747 Liggett: Revolving credit facility 28,381 31,614 Term loan under credit facility 2,409 2,704 Equipment loans 1,039 2,662 Other 30,440 752 Total notes payable, long-term debt and other obligations 1,666,445 1,253,542 Less: Debt issuance costs (23,614 ) (25,478 ) Total notes payable, long-term debt and other obligations 1,642,831 1,228,064 Less: Current maturities (256,134 ) (33,820 ) Amount due after one year $ 1,386,697 $ 1,194,244 _____________________________ * The fair value of the derivatives embedded within the 5.5% Variable Interest Senior Convertible Debentures ( $24,789 at December 31, 2018 and $45,249 at December 31, 2017 , respectively) and the 7.5% Variable Interest Senior Convertible Debentures ( $6,635 at December 31, 2018 and $31,164 at December 31, 2017 , respectively) is separately classified as a derivative liability in the consolidated balance sheets. |
Schedule of non-cash interest expense | A summary of non-cash interest expense associated with the amortization of the debt discount created by the embedded derivative liability associated with the Company’s variable interest senior convertible debt is as follows: Year Ended December 31, 2018 2017 2016 7.5% Convertible Notes $ 39,845 $ 23,720 $ 14,294 5.5% Convertible Notes 15,924 13,490 11,438 Interest expense associated with embedded derivatives $ 55,769 $ 37,210 $ 25,732 A summary of non-cash changes in fair value of derivatives embedded within convertible debt is as follows: Year Ended December 31, 2018 2017 2016 7.5% Convertible Notes $ 24,530 $ 21,734 $ 19,184 5.5% Convertible Notes 20,459 14,185 12,526 Gain on changes in fair value of derivatives embedded within convertible debt $ 44,989 $ 35,919 $ 31,710 |
Schedule of convertible debt | A summary of non-cash interest expense associated with the amortization of the debt discount created by the beneficial conversion feature on the Company’s variable interest senior convertible debt is as follows: Year Ended December 31, 2018 2017 2016 Amortization of beneficial conversion feature: 7.5% Convertible Notes $ 26,049 $ 15,507 $ 9,345 5.5% Convertible Notes 4,805 4,070 3,451 Interest expense associated with beneficial conversion feature $ 30,854 $ 19,577 $ 12,796 7.5% Convertible Notes 5.5% Convertible Notes Total Balance at January 1, 2016 $ 132,119 $ 86,136 $ 218,255 Amortization of embedded derivatives (14,294 ) (11,438 ) (25,732 ) Amortization of beneficial conversion feature (9,345 ) (3,451 ) (12,796 ) Balance at December 31, 2016 108,480 71,247 179,727 Amortization of embedded derivatives (23,720 ) (13,490 ) (37,210 ) Amortization of beneficial conversion feature (15,507 ) (4,070 ) (19,577 ) Balance at December 31, 2017 69,253 53,687 122,940 Partial redemption of 5.5% convertible notes — (3,493 ) (3,493 ) Amortization of embedded derivatives (39,845 ) (15,924 ) (55,769 ) Amortization of beneficial conversion feature (26,049 ) (4,805 ) (30,854 ) Balance at December 31, 2018 $ 3,359 $ 29,465 $ 32,824 7.5% Convertible Notes 5.5% Convertible Notes Total Balance at January 1, 2016 $ 72,083 $ 71,959 $ 144,042 Gain from changes in fair value of embedded derivatives (19,184 ) (12,526 ) (31,710 ) Balance at December 31, 2016 52,899 59,433 112,332 Gain from changes in fair value of embedded derivatives (21,734 ) (14,185 ) (35,919 ) Balance at December 31, 2017 31,165 45,248 76,413 Gain from changes in fair value of embedded derivatives (24,530 ) (20,459 ) (44,989 ) Balance at December 31, 2018 $ 6,635 $ 24,789 $ 31,424 December 31, 2018 December 31, 2017 Conversion Price Shares per $1,000 Conversion Price Shares per $1,000 7.5% Convertible Notes $ 13.80 72.4376 $ 13.80 72.4376 5.5% Convertible Notes $ 21.28 46.9869 $ 21.28 46.9869 |
Schedule of fair value of notes payable and long-term debt | The estimated fair value of the Company’s notes payable and long-term debt are as follows: December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Senior Notes $ 1,175,000 $ 1,034,500 $ 850,000 $ 879,750 Variable Interest Senior Convertible Debt 429,176 468,704 365,810 662,169 Liggett and other 62,269 62,255 37,732 37,697 Notes payable and long-term debt $ 1,666,445 (1) $ 1,565,459 $ 1,253,542 (1) $ 1,579,616 __________ (1) The carrying value does not include the carrying value of the embedded derivative. See Note 18 . |
Schedule of scheduled maturities | Scheduled maturities of notes payable and long-term debt are as follows: Principal Unamortized Discount/ (Premium) Net Year Ending December 31: 2019 $ 259,791 $ 3,359 $ 256,432 2020 244,478 29,465 215,013 2021 10,000 — 10,000 2022 10,000 — 10,000 2023 — — — Thereafter 1,175,000 — 1,175,000 Total $ 1,699,269 $ 32,824 $ 1,666,445 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of aggregate minimum rentals under operating leases with non-cancelable terms | The aggregate minimum rentals under operating leases with non-cancelable terms of one year or more as of December 31, 2018 are as follows: Lease Commitments Sublease Rentals Net Year Ending December 31: 2019 $ 35,973 $ 69 $ 35,904 2020 29,917 — 29,917 2021 27,592 — 27,592 2022 25,185 — 25,185 2023 23,589 — 23,589 Thereafter 104,126 — 104,126 Total $ 246,382 $ 69 $ 246,313 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following table provides a reconciliation of benefit obligations, plan assets and the funded status of the pension plans and other postretirement benefits: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at January 1 $ (132,722 ) $ (132,721 ) $ (8,967 ) $ (8,682 ) Service cost (587 ) (564 ) (4 ) (5 ) Interest cost (4,495 ) (5,059 ) (330 ) (368 ) Plan amendment — — (39 ) — Benefits paid 8,524 9,012 553 582 Expenses paid 260 297 — — Actuarial gain 5,855 (3,687 ) 491 (494 ) Benefit obligation at December 31 $ (123,165 ) $ (132,722 ) $ (8,296 ) $ (8,967 ) Change in plan assets: Fair value of plan assets at January 1 $ 106,192 $ 103,781 $ — $ — Actual return on plan assets (4,497 ) 11,373 — — Expenses paid (260 ) (297 ) — — Contributions 256 347 553 582 Benefits paid (8,524 ) (9,012 ) (553 ) (582 ) Fair value of plan assets at December 31 $ 93,167 $ 106,192 $ — $ — Unfunded status at December 31 $ (29,998 ) $ (26,530 ) $ (8,296 ) $ (8,967 ) Amounts recognized in the consolidated balance sheets: Prepaid pension costs $ 23,869 $ 27,697 $ — $ — Other accrued liabilities (228 ) (313 ) (647 ) (639 ) Non-current employee benefit liabilities (53,639 ) (53,914 ) (7,649 ) (8,328 ) Net amounts recognized $ (29,998 ) $ (26,530 ) $ (8,296 ) $ (8,967 ) |
Schedule of Net Benefit Costs | Pension Benefits Other Postretirement Benefits 2018 2017 2016 2018 2017 2016 Service cost — benefits earned during the period $ 587 $ 564 $ 547 $ 4 $ 5 $ 5 Interest cost on projected benefit obligation 4,495 5,059 5,419 330 368 385 Expected return on assets (5,572 ) (5,424 ) (6,076 ) — — — Prior service cost — — — 4 — — Amortization of net loss (gain) 1,804 2,009 1,855 (41 ) (54 ) (75 ) Net expense $ 1,314 $ 2,208 $ 1,745 $ 297 $ 319 $ 315 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table summarizes amounts in accumulated other comprehensive loss (gain) that are expected to be recognized as components of net periodic benefit cost for the year ending 2019 . Defined Benefit Pension Plans Post- Retirement Plans Total Prior service cost $ — $ 4 $ 4 Actuarial loss (gain) $ 2,001 $ (40 ) $ 1,961 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | As of December 31, 2018 , accumulated other comprehensive (loss) income, before income taxes, consists of the following: Defined Benefit Pension Plans Post- Retirement Plans Total Accumulated other comprehensive loss as of January 1, 2018 $ (31,643 ) $ (237 ) $ (31,880 ) Amortization of loss (gain) 1,804 (41 ) 1,763 Net (loss) gain arising during the year (4,214 ) 491 (3,723 ) Accumulated other comprehensive (loss) income as of December 31, 2018 $ (34,053 ) $ 177 $ (33,876 ) As of December 31, 2017 , accumulated other comprehensive (loss) income, before income taxes, consisted of the following: Defined Benefit Pension Plans Post- Retirement Plans Total Accumulated other comprehensive (loss) income as of January 1, 2017 $ (35,914 ) $ 311 $ (35,603 ) Amortization of loss (gain) 2,009 (54 ) 1,955 Net gain (loss) arising during the year 2,262 (494 ) 1,768 Accumulated other comprehensive loss as of December 31, 2017 $ (31,643 ) $ (237 ) $ (31,880 ) |
Schedule of Assumptions Used | Pension Benefits Other Postretirement Benefits 2018 2017 2016 2018 2017 2016 Weighted average assumptions: Discount rates — benefit obligation 3.9% - 4.25% 3.25% - 3.7% 3.60% - 4.20% 4.35% 3.80% 4.40% Discount rates — service cost 3.25% - 3.7% 3.6% - 4.2% 3.75% - 4.50% 3.80% 4.40% 4.75% Assumed rates of return on invested assets 5.50% 5.50% 6.00% N/A N/A N/A Salary increase assumptions N/A N/A N/A 3.00% 3.00% 3.00% |
Schedule of Allocation of Plan Assets | Vector’s defined benefit retirement plan allocations by asset category, were as follows: Plan Assets at December 31, 2018 2017 Asset category: Equity securities 52 % 56 % Investment grade fixed income securities 39 % 35 % High yield fixed income securities 9 % 9 % Total 100 % 100 % The defined benefit plans’ recurring financial assets subject to fair value measurements and the necessary disclosures are as follows: Fair Value Measurements as of December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Insurance contracts $ 2,161 $ — $ 2,161 $ — Amounts in individually managed investment accounts: Cash, mutual funds and common stock 175 175 — — U.S. equity securities — — — — Common collective trusts 48,126 — 48,126 — Common collective trusts at NAV (1) 33,731 — — — Mutual Funds 8,974 — 8,974 — Total $ 93,167 $ 175 $ 59,261 $ — (1) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. Fair Value Measurements as of December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Insurance contracts $ 2,245 $ — $ 2,245 $ — Amounts in individually managed investment accounts: Cash, mutual funds and common stock 173 173 — — U.S. equity securities 2,149 2,149 — — Common collective trusts 35,064 — 35,064 — Common collective trusts at NAV (1) 56,406 — — — Investment Partnership 10,155 — 10,028 127 Total $ 106,192 $ 2,322 $ 47,337 $ 127 (1) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The changes in the fair value of the Level 3 investments as of December 31, 2018 and 2017 were as follows: 2018 2017 Balance as of January 1 $ 127 $ 1,990 Distributions (127 ) (1,962 ) Unrealized gain on long-term investments — 15 Realized gain on long-term investments — 84 Balance as of December 31 $ — $ 127 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A 1% change in assumed health care cost trend rates would have the following effects: 1% Increase 1% Decrease Effect on total of service and interest cost components $ 2 $ (2 ) Effect on benefit obligation 54 (51 ) |
Schedule of Expected Benefit Payments | Estimated future pension and postretirement medical benefits payments are as follows: Pension Postretirement Medical 2019 $ 8,077 $ 647 2020 14,692 632 2021 7,111 631 2022 6,671 630 2023 6,265 628 2024 - 2028 82,618 2,944 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The amounts provided for income taxes are as follows: Year Ended December 31, 2018 2017 2016 Current: U.S. Federal $ 27,962 $ 28,271 $ 29,185 State 11,225 3,458 7,407 $ 39,187 $ 31,729 $ 36,592 Deferred: U.S. Federal $ (12,524 ) $ (31,049 ) $ 10,076 State (5,111 ) (2,262 ) 2,495 (17,635 ) (33,311 ) 12,571 Total $ 21,552 $ (1,582 ) $ 49,163 |
Schedule of Deferred Tax Assets and Liabilities | The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and liabilities is as follows: December 31, 2018 December 31, 2017 Deferred tax assets: Employee benefit accruals $ 12,801 $ 11,621 Impairment of investments 4,131 1,834 Impact of timing of settlement payments 20,551 14,367 Disallowed interest expense carryforward 1,619 — Various U.S. state tax loss carryforwards 5,137 6,556 Other 1,966 1,110 46,205 35,488 Less: Valuation allowance (3,817 ) (3,664 ) Net deferred tax assets $ 42,388 $ 31,824 Deferred tax liabilities: Basis differences on non-consolidated entities $ (7,752 ) $ (5,388 ) Basis differences on fixed and intangible assets (35,854 ) (36,712 ) Capitalized interest expense (6,532 ) (6,069 ) Basis differences on inventory (11,497 ) (11,357 ) Basis differences on long-term investments (16,496 ) (15,521 ) Impact of accounting for convertible debt (385 ) (12,776 ) Basis differences on available for sale securities (1,283 ) (2,802 ) $ (79,799 ) $ (90,625 ) Net deferred tax liabilities $ (37,411 ) $ (58,801 ) |
Schedule of Effective Income Tax Rate Reconciliation | Differences between the amounts provided for income taxes and amounts computed at the federal statutory tax rate are summarized as follows: Year Ended December 31, 2018 2017 2016 Income before provision for income taxes $ 79,559 $ 89,168 $ 126,429 Federal income tax expense at statutory rate 16,707 31,209 44,250 Increases (decreases) resulting from: State income taxes, net of federal income tax benefits 6,060 3,833 6,991 Impact of non-controlling interest 21 (2,162 ) (2,148 ) Non-deductible expenses 1,993 2,146 2,569 Impact of domestic production deduction 359 (2,960 ) (2,603 ) Impact of Tax Cuts and Jobs Act of 2017 (2,691 ) (28,845 ) — Excess tax benefits on stock-based compensation (778 ) (1,143 ) — Tax credits (127 ) (2,683 ) (359 ) Other (545 ) (155 ) (1,202 ) Inclusion of tax liabilities from unincorporated entities 400 (47 ) 1,126 Changes in valuation allowance, net of equity and tax audit adjustments 153 (775 ) 539 Income tax expense (benefit) $ 21,552 $ (1,582 ) $ 49,163 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits: Balance at January 1, 2016 $ 1,523 Additions based on tax positions related to prior years 72 Settlements (119 ) Expirations of the statute of limitations (961 ) Balance at December 31, 2016 515 Additions based on tax positions related to prior years 208 Settlements — Expirations of the statute of limitations (95 ) Balance at December 31, 2017 628 Additions based on tax positions related to prior years 26 Settlements (100 ) Expirations of the statute of limitations (163 ) Balance at December 31, 2018 $ 391 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The assumptions used for grants in the years ended December 31, 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Risk-free interest rate 2.7% - 2.9% 2.1% - 2.4% 1.5% - 1.7% Expected volatility 19.02% - 21.05% 18.88% - 21.62% 16.49% - 18.13% Dividend yield 0.0 % 0.0 % 0.0 % Expected holding period 5.00 – 10.00 years 6.00 – 10.00 years 7.00 – 10.00 years Weighted-average grant date fair value (1) $4.62 - $7.58 $5.39 - $8.17 $5.09 - $6.88 _____________________________ ( 1) Per share amounts have not been adjusted to give effect to the stock dividends in 2018 , 2017 and 2016 . |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of employee stock option transactions follows: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value(1) Outstanding on January 1, 2016 4,336,036 $ 11.93 5.9 $ 36,612 Granted 448,580 $ 20.08 Exercised (36,935 ) $ 10.76 Canceled (6 ) $ — Outstanding on December 31, 2016 4,747,675 $ 12.71 5.3 $ 37,557 Granted 427,219 $ 20.69 Exercised — $ — Canceled (12 ) $ — Outstanding on December 31, 2017 5,174,882 $ 13.38 4.7 $ 41,069 Granted 406,875 $ 19.34 Exercised — $ — Canceled (11 ) $ — Outstanding on December 31, 2018 5,581,746 $ 13.82 4.1 $ 1,095 Options exercisable at: December 31, 2016 2,328,463 December 31, 2017 3,333,525 December 31, 2018 3,828,073 _____________________________ (1) The aggregate intrinsic value represents the amount by which the fair value of the underlying common stock ( $9.73 , $21.31 and $20.63 at December 31, 2018 , 2017 and 2016 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Additional information relating to options outstanding at December 31, 2018 follows: Options Outstanding Options Exercisable Range of Exercise Prices Outstanding as of Weighted-Average Contractual Life (Years) Weighted-Average Exercise Price Exercisable as of Weighted-Average Contractual Life (Years) Weighted-Average Aggregate Intrinsic Value 12/31/2018 12/31/2018 $8.28 - $10.35 1,737,478 0.9 $ 9.10 1,737,478 0.9 $ 9.10 $ — $10.35 - $12.41 1,596,042 3.4 $ 11.91 1,596,042 3.4 $ 11.91 — $12.41 - $14.48 — — $ — — — $ — — $14.48 - $16.55 494,553 5.4 $ 15.41 494,553 5.4 $ 15.41 — $16.55 - $18.62 — — $ — — — $ — — $18.62 - $20.69 1,753,673 7.6 $ 19.77 — — $ — — 5,581,746 4.1 $ 13.82 3,828,073 2.5 $ 11.09 $ 1,095 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contingencies | The activity in the Company’s accruals for the MSA and tobacco litigation for the three years ended December 31, 2018 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 as of January 1, 2016 $ 29,241 $ 22,904 $ 52,145 $ 20,094 $ 24,718 $ 44,812 Expenses 110,486 16,679 127,165 — 3,650 3,650 Change in MSA obligations capitalized as inventory 1,568 — 1,568 — — — Payments (122,977 ) (39,682 ) (162,659 ) — — — Reclassification to/(from) non-current liabilities (2,163 ) 3,252 1,089 2,163 (3,252 ) (1,089 ) Interest on withholding 37 506 543 — 2,397 2,397 Balance as of December 31, 2016 16,192 3,659 19,851 22,257 27,513 49,770 Expenses 149,355 6,566 155,921 — — — Change in MSA obligations capitalized as inventory 76 — 76 — — — Payments (151,296 ) (17,537 ) (168,833 ) — (3,426 ) (3,426 ) Reclassification to/(from) non-current liabilities (150 ) 7,143 6,993 150 (7,143 ) (6,993 ) Interest on withholding — 429 429 — 2,896 2,896 Balance as of December 31, 2017 12,384 260 12,644 21,479 19,840 41,319 Expenses 168,820 735 169,555 — — — NPM Settlement adjustment (595 ) — (595 ) (5,703 ) — (5,703 ) Change in MSA obligations capitalized as inventory (1,438 ) — (1,438 ) — — — Payments (141,963 ) (935 ) (142,898 ) (40 ) — (40 ) Reclassification to/(from) non-current liabilities (647 ) 218 (429 ) 647 (218 ) 429 Interest on withholding — 32 32 — 2,172 2,172 Balance as of December 31, 2018 $ 36,561 $ 310 $ 36,871 $ 16,383 $ 21,794 $ 38,177 State Number of Cases Florida 21 Illinois 4 New York 2 Louisiana 2 West Virginia 2 Ohio 1 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Year Ended December 31, 2018 2017 2016 Cash paid during the period for: Interest $ 107,021 $ 117,453 $ 108,422 Income taxes 26,529 26,885 46,811 Non-cash investing and financing activities: Issuance of stock dividend 671 644 609 Decrease in non-controlling interest related to purchase of subsidiary (73,953 ) — — Notes payable issued for purchase of subsidiary 30,000 — — Contingent consideration related to purchase of subsidiary 6,304 6,304,348 — — Net receivable from purchase of subsidiary 497 — — |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Company's recurring financial assets and liabilities subject to fair value measurements | T he Company’s financial assets and liabilities subject to fair value measurements were as follows: Fair Value Measurements as of December 31, 2018 Description Total Quoted Prices in Active Markets for Identical Assets Total Losses Assets: Money market funds (1) $ 448,560 $ 448,560 $ — $ — Commercial paper (1) 46,062 — 46,062 — Certificates of deposit (2) 2,251 — 2,251 — Money market funds securing legal bonds (2) 535 535 — — Investment securities at fair value Equity securities at fair value Marketable equity securities 26,010 26,010 — — Mutual funds invested in fixed-income securities 21,192 21,192 — — Total equity securities at fair value 47,202 47,202 — — Debt securities available for sale U.S. government securities 28,514 — 28,514 — Corporate securities 41,733 — 41,733 — U.S. government and federal agency 4,369 — 4,369 — Commercial mortgage-backed securities 401 — 401 — Commercial paper 5,870 — 5,870 — Index-linked U.S. bonds 2,330 — 2,330 — Foreign fixed-income securities 1,150 — 1,150 — Total debt securities available for sale 84,367 — 84,367 — Total investment securities at fair value 131,569 47,202 84,367 — Long-term investments Equity securities at fair value that qualify for the NAV practical expedient (3) 54,628 — — — Total $ 683,605 $ 496,297 $ 132,680 $ — Liabilities: Fair value of contingent liability $ 6,304 $ — $ — $ 6,304 Fair value of derivatives embedded within convertible debt 31,424 — — 31,424 Total $ 37,728 $ — $ — $ 37,728 (1) Amounts included in Cash and cash equivalents on the consolidated balance sheet, except for $2,570 that is included in current restricted assets and $3,910 that is included in non-current restricted assets. (2) Amounts included in current restricted assets and non-current restricted assets on the consolidated balance sheet. (3) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. Fair Value Measurements as of December 31, 2017 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses Assets: Money market funds (1) $ 166,915 $ 166,915 $ — $ — Commercial paper (1) 43,781 — 43,781 — Certificates of deposit (2) 2,497 — 2,497 — Bonds (2) 2,990 2,990 — — Investment securities at fair value Equity securities 44,634 44,634 — — Mutual funds invested in fixed-income securities 21,041 21,041 — — Fixed income securities U.S. government securities 28,502 — 28,502 — Corporate securities 41,329 — 41,329 — U.S. government and federal agency 4,564 — 4,564 — Commercial mortgage-backed securities 426 — 426 — Commercial paper 7,027 — 7,027 — Index-linked U.S. bonds 2,316 — 2,316 — Foreign fixed-income securities 650 — 650 — Total fixed-income securities 84,814 — 84,814 — Total investment securities at fair value 150,489 65,675 84,814 — Total $ 366,672 $ 235,580 $ 131,092 $ — Liabilities: Fair value of derivatives embedded within convertible debt $ 76,413 $ — $ — $ 76,413 Nonrecurring fair value measurements Long-term investments (3) $ 4,475 $ 4,475 $ (525 ) $ 4,475 $ 4,475 $ (525 ) (1) Amounts included in Cash and cash equivalents on the consolidated balance sheet. (2) Amounts included in current restricted assets and non-current restricted assets on the consolidated balance sheet. (3) Long-term investments with a carrying amount of $5,000 were written down to their fair value of $4,475 , resulting in an impairment charge of $525 , which was included in earnings. |
Unobservable inputs related to the valuations of the Level 3 liabilities | The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2018 : Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, Valuation Technique Unobservable Input Range (Actual) Fair value of derivatives embedded within convertible debt $ 31,424 Discounted cash flow Assumed annual stock dividend 5 % Assumed annual cash dividend $ 1.60 Stock price $ 9.73 Convertible trading price (as a percentage of par value) 100.31 % Maturity April 15, 2020 Volatility 20.39 % Risk-free rate Term structure of US Treasury Securities Implied credit spread 8.0% - 9.0% (8.5%) Fair value of contingent liability $ 6,304 Monte Carlo simulation model Estimated fair value of the Douglas Elliman reporting unit $ 320,000 Risk-free rate for a 4-year term 2.45 % Leverage-adjusted equity volatility of peer firms 30.22 % The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2017 : Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, Valuation Technique Unobservable Input Range (Actual) Fair value of derivatives embedded within convertible debt $ 76,413 Discounted cash flow Assumed annual stock dividend 5 % Assumed annual cash dividend $ 1.60 Stock price $ 22.38 Convertible trading price (as a percentage of par value) 115.19 % Volatility 17.98 % Risk-free rate Term structure of US Treasury Securities Implied credit spread 3.0% - 4.0% (3.5%) (1) Amount has not been adjusted to give effect to the stock dividend in 2018 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Financial information for the Company’s operations before taxes and non-controlling interests | Financial information for the Company’s operations before taxes and non-controlling interests for the years ended December 31, 2018 , 2017 and 2016 follows: Real Corporate Tobacco Estate and Other Total 2018 Revenues $ 1,111,094 $ 759,168 $ — $ 1,870,262 Operating income (loss) 246,527 (1) 3,435 (4) (25,913 ) 224,049 Equity in earnings from real estate ventures — 14,446 — 14,446 Identifiable assets 315,706 539,828 (5) 693,970 (6) 1,549,504 Depreciation and amortization 8,210 9,580 1,017 18,807 Capital expenditures 4,599 13,061 22 17,682 2017 Revenues $ 1,080,950 $ 727,364 $ (838 ) $ 1,807,476 Operating income (loss) 240,400 (2) 21,439 (26,191 ) 235,648 Equity in earnings from real estate ventures — 21,395 — 21,395 Identifiable assets 309,316 558,776 (5) 460,186 (6) 1,328,278 Depreciation and amortization 8,826 8,511 1,277 18,614 Capital expenditures 3,705 16,129 35 19,869 2016 Revenues $ 1,011,620 $ 680,105 $ (776 ) $ 1,690,949 Operating income (loss) 237,524 (3) 23,001 (26,020 ) 234,505 Equity in earnings from real estate ventures — 5,200 — 5,200 Identifiable assets 328,349 573,350 (5) 502,336 (6) 1,404,035 Depreciation and amortization 10,224 10,485 1,650 22,359 Capital expenditures 6,445 20,160 86 26,691 _____________________________ (1) Operating income includes $6,298 of income from MSA Settlement, and $685 of litigation judgment expense. (2) Operating income includes $2,721 of income from MSA Settlement and $6,591 of litigation judgment expense. (3) Operating income includes $247 of expense from MSA Settlement, $20,000 of litigation settlement and judgment expense, $41 of restructuring expense. (4) Operating income includes $2,469 of litigation judgment income. (5) Includes real estate investments accounted for under the equity method of accounting of $141,105 , $188,131 and $221,258 as of December 31, 2018 , 2017 and 2016 , respectively. (6) Corporate and Other identifiable assets primarily includes cash of $474,974 , investment securities of $131,569 , equity securities at fair value that qualify for the NAV practical expedient of $54,628 , and equity-method investments of $11,631 as of December 31, 2018 . Corporate and other identifiable assets primarily includes cash of $195,053 , investment securities of $150,489 , long-term investments accounted at cost of $65,450 , and long-term investments accounted for under the equity method of accounting of $15,841 as of December 31, 2017 . Corporate and other identifiable assets primarily includes cash of $280,691 , investment securities of $156,903 , long-term investments accounted at cost of $34,975 , and long-term investments accounted for under the equity method of accounting of $17,721 as of December 31, 2016 |
Quarterly Financial Results (_2
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Unaudited quarterly data for the years ended December 31, 2018 and 2017 are as follows: December 31, September 30, June 30, March 31, 2018 2018 2018 2018 Revenues $ 445,939 $ 513,869 $ 481,488 $ 428,966 Gross Profit 140,798 153,567 148,722 134,691 Operating income 48,086 66,018 61,861 48,084 Net income 20,319 15,028 18,996 3,664 Net income applicable to common shares attributed to Vector Group Ltd. 21,074 12,002 17,818 7,211 Per basic common share (1) : Net income applicable to common shares attributed to Vector Group Ltd. $ 0.14 $ 0.07 $ 0.12 $ 0.04 Per diluted common share (1) : Net income applicable to common shares attributed to Vector Group Ltd. $ 0.14 $ 0.07 $ 0.12 $ 0.04 _____________________________ (1) Per share computations include the impact of a 5% stock dividend paid on September 27, 2018 . Quarterly basic and diluted net income per common share were computed independently for each quarter and do not necessarily total to the year to date basic and diluted net income per common share. December 31, September 30, June 30, March 31, 2017 2017 2017 2017 Revenues $ 435,654 $ 484,625 $ 471,989 $ 415,208 Gross Profit 136,541 146,509 157,095 139,285 Operating income 48,204 59,723 74,300 53,421 Net income (loss) 42,951 20,478 31,546 (4,225 ) Net income (loss) applicable to common shares attributed to Vector Group Ltd. 42,724 19,264 26,811 (4,227 ) Per basic common share (1): Net income (loss) applicable to common shares attributed to Vector Group Ltd. $ 0.30 $ 0.13 $ 0.18 $ (0.04 ) Per diluted common share (1): Net income (loss) applicable to common shares attributed to Vector Group Ltd. $ 0.26 $ 0.13 $ 0.18 $ (0.04 ) _____________________________ (1) Per share computations include the impact of a 5% |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. ASSETS: Current assets: Cash and cash equivalents $ 474,880 $ 23,308 $ 86,393 $ — $ 584,581 Investment securities at fair value 131,569 — — — 131,569 Accounts receivable - trade, net — 15,440 18,806 — 34,246 Intercompany receivables 38,391 — — (38,391 ) — Inventories — 90,997 — — 90,997 Income taxes receivable, net — — 1,268 (1,268 ) — Restricted assets — 1,124 3,353 — 4,477 Other current assets 1,500 6,475 18,376 — 26,351 Total current assets 646,340 137,344 128,196 (39,659 ) 872,221 Property, plant and equipment, net 506 38,562 47,668 — 86,736 Investments in real estate, net — — 26,220 — 26,220 Long-term investments (of which $54,628 were carried at fair value) 66,259 — — — 66,259 Investments in real estate ventures — — 141,105 — 141,105 Investments in consolidated subsidiaries 431,288 252,113 — (683,401 ) — Restricted assets 1,495 901 3,910 — 6,306 Goodwill and other intangible assets, net — 107,511 159,100 — 266,611 Prepaid pension costs — 23,869 — — 23,869 Other assets 13,121 13,384 33,672 — 60,177 Total assets $ 1,159,009 $ 573,684 $ 539,871 $ (723,060 ) $ 1,549,504 LIABILITIES AND STOCKHOLDERS' DEFICIENCY: Current liabilities: Current portion of notes payable and long-term debt $ 226,343 $ 29,480 $ 311 $ — $ 256,134 Current portion of fair value of derivatives embedded within convertible debt 6,635 — — — 6,635 Current portion of employee benefits — 875 — — 875 Intercompany payables — 479 37,912 (38,391 ) — Income taxes payable, net 5,257 1,263 — (1,268 ) 5,252 Litigation accruals and current payments due under the Master Settlement Agreement — 36,871 — — 36,871 Other current liabilities 55,915 72,094 51,144 — 179,153 Total current liabilities 294,150 141,062 89,367 (39,659 ) 484,920 Notes payable, long-term debt and other obligations, less current portion 1,354,219 2,349 30,129 — 1,386,697 Fair value of derivatives embedded within convertible debt 24,789 — — — 24,789 Non-current employee benefits 45,615 15,673 — — 61,288 Deferred income taxes, net (13,084 ) 17,732 32,763 — 37,411 Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement 1,379 38,179 62,207 — 101,765 Total liabilities 1,707,068 214,995 214,466 (39,659 ) 2,096,870 Commitments and contingencies Stockholders' (deficiency) equity attributed to Vector Group Ltd. (548,059 ) 358,689 324,712 (683,401 ) (548,059 ) Non-controlling interest — — 693 — 693 Total stockholders' (deficiency) equity (548,059 ) 358,689 325,405 (683,401 ) (547,366 ) Total liabilities and stockholders' deficiency $ 1,159,009 $ 573,684 $ 539,871 $ (723,060 ) $ 1,549,504 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2017 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. ASSETS: Current assets: Cash and cash equivalents $ 194,719 $ 17,141 $ 89,493 $ — $ 301,353 Investment securities at fair value 121,282 29,207 — — 150,489 Accounts receivable - trade, net — 15,736 13,745 — 29,481 Intercompany receivables 29,541 — — (29,541 ) — Inventories — 89,790 — — 89,790 Income taxes receivable, net 22,661 — — (11,444 ) 11,217 Restricted assets — 3,052 7,206 — 10,258 Other current assets 20,549 3,429 17,151 (20,008 ) 21,121 Total current assets 388,752 158,355 127,595 (60,993 ) 613,709 Property, plant and equipment, net 696 42,493 42,327 — 85,516 Investments in real estate, net — — 23,952 — 23,952 Long-term investments (of which $0 were carried at fair value) 81,291 — — — 81,291 Investments in real estate ventures — — 188,131 — 188,131 Investments in consolidated subsidiaries 469,436 — — (469,436 ) — Restricted assets 1,501 1,987 — — 3,488 Goodwill and other intangible assets,net — 107,511 160,197 — 267,708 Prepaid pension costs — 27,697 — — 27,697 Other assets 7,843 12,355 16,588 — 36,786 Total assets $ 949,519 $ 350,398 $ 558,790 $ (530,429 ) $ 1,328,278 LIABILITIES AND STOCKHOLDERS' DEFICIENCY: Current liabilities: Current portion of notes payable and long-term debt $ — $ 53,540 $ 288 $ (20,008 ) $ 33,820 Current portion of employee benefits — 952 — — 952 Intercompany payables — 449 29,092 (29,541 ) — Income taxes payable, net — 11,542 2 (11,444 ) 100 Litigation accruals and current payments due under the Master Settlement Agreement — 12,644 — — 12,644 Other current liabilities 49,088 62,353 45,682 — 157,123 Total current liabilities 49,088 141,480 75,064 (60,993 ) 204,639 Notes payable, long-term debt and other obligations, less current portion 1,190,333 3,448 463 — 1,194,244 Fair value of derivatives embedded within convertible debt 76,413 — — — 76,413 Non-current employee benefits 45,442 16,800 — — 62,242 Deferred income taxes, net 695 26,459 31,647 — 58,801 Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement 1,467 41,315 20,917 — 63,699 Total liabilities 1,363,438 229,502 128,091 (60,993 ) 1,660,038 Commitments and contingencies Stockholders' (deficiency) equity attributed to Vector Group Ltd. (413,919 ) 120,896 348,540 (469,436 ) (413,919 ) Non-controlling interest — — 82,159 — 82,159 Total stockholders' (deficiency) equity (413,919 ) 120,896 430,699 (469,436 ) (331,760 ) Total liabilities and stockholders' deficiency $ 949,519 $ 350,398 $ 558,790 $ (530,429 ) $ 1,328,278 |
Condensed Consolidating Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2018 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Revenues $ — $ 1,111,572 $ 759,168 $ (478 ) $ 1,870,262 Expenses: Cost of sales — 787,251 505,233 — 1,292,484 Operating, selling, administrative and general expenses 35,332 66,781 253,878 (478 ) 355,513 Litigation settlement and judgment expense (income) — 685 (2,469 ) — (1,784 ) Management fee expense — 11,509 — (11,509 ) — Operating (loss) income (35,332 ) 245,346 2,526 11,509 224,049 Other income (expenses): Interest expense (200,916 ) (2,797 ) (67 ) — (203,780 ) Change in fair value of derivatives embedded within convertible debt 44,989 — — — 44,989 Loss on extinguishment of debt (4,066 ) — — — (4,066 ) Equity in earnings from real estate ventures — — 14,446 — 14,446 Equity in earnings from investments 3,158 — — — 3,158 Net losses recognized on investment securities (4,965 ) (4,605 ) — — (9,570 ) Equity in earnings in consolidated subsidiaries 195,582 3,669 — (199,251 ) — Management fee income 11,509 — — (11,509 ) — Other, net 5,000 3,608 1,725 — 10,333 Income before provision for income taxes 14,959 245,221 18,630 (199,251 ) 79,559 Income tax benefit (expense) 43,146 (60,749 ) (3,949 ) — (21,552 ) Net income 58,105 184,472 14,681 (199,251 ) 58,007 Net loss attributed to non-controlling interest — — 98 — 98 Net income attributed to Vector Group Ltd. $ 58,105 $ 184,472 $ 14,779 $ (199,251 ) $ 58,105 Comprehensive loss attributed to non-controlling interest $ — $ — $ 98 $ — $ 98 Comprehensive income attributed to Vector Group Ltd. $ 56,730 $ 181,041 $ 14,779 $ (195,820 ) $ 56,730 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2017 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Revenues $ — $ 1,080,590 $ 727,364 $ (478 ) $ 1,807,476 Expenses: Cost of sales — 750,768 477,278 — 1,228,046 Operating, selling, administrative and general expenses 34,790 74,107 228,772 (478 ) 337,191 Litigation settlement and judgment expense — 6,591 — — 6,591 Management fee expense — 11,069 — (11,069 ) — Operating (loss) income (34,790 ) 238,055 21,314 11,069 235,648 Other income (expenses): Interest expense (169,910 ) (3,740 ) (35 ) — (173,685 ) Change in fair value of derivatives embedded within convertible debt 35,919 — — — 35,919 Loss on extinguishment of debt (34,110 ) — — — (34,110 ) Equity in earnings from real estate ventures — — 21,395 — 21,395 Equity in losses from investments (729 ) (36 ) — — (765 ) Net losses recognized on investment securities (625 ) — (35 ) — (660 ) Equity in earnings in consolidated subsidiaries 200,480 15,077 — (215,557 ) — Management fee income 11,069 — — (11,069 ) — Other, net 1,930 2,137 1,359 — 5,426 Income before provision for income taxes 9,234 251,493 43,998 (215,557 ) 89,168 Income tax benefit (expense) 75,338 (73,546 ) (210 ) — 1,582 Net income 84,572 177,947 43,788 (215,557 ) 90,750 Net income attributed to non-controlling interest — — (6,178 ) — (6,178 ) Net income attributed to Vector Group Ltd. $ 84,572 $ 177,947 $ 37,610 $ (215,557 ) $ 84,572 Comprehensive income attributed to non-controlling interest $ — $ — $ (6,178 ) $ — $ (6,178 ) Comprehensive income attributed to Vector Group Ltd. $ 83,246 $ 161,577 $ 37,610 $ (199,187 ) $ 83,246 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2016 Parent/ Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Consolidating Adjustments Consolidated Vector Group Ltd. Revenues $ — $ 1,011,322 $ 680,105 $ (478 ) $ 1,690,949 Expenses: Cost of sales — 672,515 424,829 — 1,097,344 Operating, selling, administrative and general expenses 33,964 73,129 232,444 (478 ) 339,059 Litigation settlement and judgment expense — 20,000 — — 20,000 Restructuring charges — 41 — — 41 Management fee expense — 10,649 — (10,649 ) — Operating (loss) income (33,964 ) 234,988 22,832 10,649 234,505 Other income (expenses): Interest expense (139,524 ) (3,438 ) (20 ) — (142,982 ) Changes in fair value of derivatives embedded within convertible debt 31,710 — — — 31,710 Equity in earnings from real estate ventures — — 5,200 — 5,200 Net losses recognized on investment securities (855 ) (2,632 ) — — (3,487 ) Equity in losses from investments (2,664 ) (90 ) — — (2,754 ) Equity in earnings in consolidated subsidiaries 161,471 14,872 — (176,343 ) — Management fee income 10,649 — — (10,649 ) — Other, net 1,124 2,174 939 — 4,237 Income before provision for income taxes 27,947 245,874 28,951 (176,343 ) 126,429 Income tax benefit (expense) 43,180 (83,008 ) (9,335 ) — (49,163 ) Net income 71,127 162,866 19,616 (176,343 ) 77,266 Net income attributed to non-controlling interest — — (6,139 ) — (6,139 ) Net income attributed to Vector Group Ltd. $ 71,127 $ 162,866 $ 13,477 $ (176,343 ) $ 71,127 Comprehensive income attributed to non-controlling interest $ — $ — $ (6,139 ) $ — $ (6,139 ) Comprehensive income attributed to Vector Group Ltd. $ 68,195 $ 146,841 $ 13,477 $ (160,318 ) $ 68,195 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2018 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Net cash provided by operating activities $ 188,568 $ 204,638 $ 36,719 $ (248,091 ) $ 181,834 Cash flows from investing activities: Sale of investment securities 14,673 3,955 — — 18,628 Maturities of investment securities 24,719 — — — 24,719 Purchase of investment securities (34,445 ) — — — (34,445 ) Proceeds from sale or liquidation of long-term investments 19,487 — — — 19,487 Purchase of long-term investments (415 ) — — — (415 ) Investments in real estate ventures — — (9,728 ) — (9,728 ) Distributions from real estate ventures — — 54,233 — 54,233 Increase in cash surrender value of life insurance policies (280 ) (484 ) — — (764 ) Decrease in restricted assets 6 520 — — 526 Issuance of notes receivable — — (450 ) — (450 ) Investments in subsidiaries (17,224 ) — (10,000 ) 27,224 — Proceeds from sale of fixed assets — 9 — — 9 Cash acquired in purchase of subsidiaries — — 654 — 654 Purchase of subsidiaries — (10,000 ) (404 ) — (10,404 ) Repayment of notes receivable 20,000 — 67 (20,000 ) 67 Capital expenditures (22 ) (4,599 ) (13,061 ) — (17,682 ) Investments in real estate, net — — (2,583 ) — (2,583 ) Pay downs of investment securities 1,611 — — — 1,611 Net cash provided by (used in) investing activities 28,110 (10,599 ) 18,728 7,224 43,463 Cash flows from financing activities: Proceeds from issuance of debt 325,000 — — — 325,000 Deferred financing costs (9,400 ) — — — (9,400 ) Repayments of debt (26,750 ) (21,631 ) (308 ) 20,000 (28,689 ) Borrowings under revolver — 307,023 — — 307,023 Repayments on revolver — (310,551 ) — — (310,551 ) Capital contributions received — 10,800 16,424 (27,224 ) — Intercompany dividends paid — (176,006 ) (72,085 ) 248,091 — Dividends and distributions on common stock (225,367 ) — — — (225,367 ) Distributions to non-controlling interest — — (2,521 ) — (2,521 ) Net cash provided by (used in) financing activities 63,483 (190,365 ) (58,490 ) 240,867 55,495 Net increase (decrease) in cash, cash equivalents and restricted cash 280,161 3,674 (3,043 ) — 280,792 Cash, cash equivalents and restricted cash, beginning of period 194,719 20,175 96,043 — 310,937 Cash, cash equivalents and restricted cash, end of period $ 474,880 $ 23,849 $ 93,000 $ — $ 591,729 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Net cash provided by operating activities $ 177,259 $ 171,122 $ 59,202 $ (275,997 ) $ 131,586 Cash flows from investing activities: Sale of investment securities 28,761 — — — 28,761 Maturities of investment securities 101,097 — — — 101,097 Purchase of investment securities (132,654 ) — — — (132,654 ) Proceeds from sale or liquidation of long-term investments 500 — 466 — 966 Purchase of long-term investments (31,650 ) — (860 ) — (32,510 ) Investments in real estate ventures — — (38,807 ) — (38,807 ) Distributions from real estate ventures — — 61,718 — 61,718 Increase in cash surrender value of life insurance policies (318 ) (484 ) — — (802 ) Decrease in restricted assets 227 1,783 240 — 2,250 Issuance of notes receivable (20,000 ) — (1,633 ) 20,000 (1,633 ) Investments in subsidiaries (38,458 ) — — 38,458 — Proceeds from sale of fixed assets — 76 — — 76 Purchase of subsidiaries — — (6,569 ) — (6,569 ) Capital expenditures (35 ) (3,705 ) (16,129 ) — (19,869 ) Investments in real estate, net — — (619 ) — (619 ) Pay downs of investment securities 2,633 — — — 2,633 Net cash used in investing activities (89,897 ) (2,330 ) (2,193 ) 58,458 (35,962 ) Cash flows from financing activities: Proceeds from issuance of debt 850,000 20,000 21 (20,000 ) 850,021 Deferred financing costs (19,200 ) — — — (19,200 ) Repayments of debt (835,000 ) (1,882 ) (323 ) — (837,205 ) Borrowings under revolver — 157,630 — — 157,630 Repayments on revolver — (163,474 ) — — (163,474 ) Capital contributions received — 2,400 36,058 (38,458 ) — Intercompany dividends paid — (182,975 ) (93,022 ) 275,997 — Dividends and distributions on common stock (211,488 ) — — — (211,488 ) Distributions to non-controlling interest — — (2,779 ) — (2,779 ) Proceeds from the issuance of Vector stock 43,230 — — — 43,230 Net cash used in financing activities (172,458 ) (168,301 ) (60,045 ) 217,539 (183,265 ) Net (decrease) increase in cash, cash equivalents and restricted cash (85,096 ) 491 (3,036 ) — (87,641 ) Cash, cash equivalents and restricted cash, beginning of period 279,815 19,684 99,079 — 398,578 Cash, cash equivalents and restricted cash, end of period $ 194,719 $ 20,175 $ 96,043 $ — $ 310,937 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2016 Parent/ Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Consolidating Adjustments Consolidated Vector Group Ltd. Net cash provided by operating activities $ 135,820 $ 139,824 $ 60,640 $ (238,648 ) $ 97,636 Cash flows from investing activities: Sale of investment securities 105,815 10,255 — — 116,070 Maturities of investment securities 10,822 — — — 10,822 Purchase of investment securities (117,211 ) — — (117,211 ) Proceeds from sale or liquidation of long-term investments 4,552 — — 4,552 Purchase of long-term investments — (50 ) — (50 ) Investments in real estate ventures — — (44,107 ) — (44,107 ) Distributions from real estate ventures — — 33,204 — 33,204 Increase in cash surrender value of life insurance policies — (484 ) — — (484 ) (Increase) decrease in restricted assets (15 ) 1,177 (752 ) — 410 Proceeds from sale of fixed assets — 32 13 — 45 Purchase of subsidiaries — — (250 ) — (250 ) Repayment of notes receivable — — 4,410 — 4,410 Investments in subsidiaries (19,219 ) — — 19,219 — Capital expenditures (86 ) (6,445 ) (20,160 ) — (26,691 ) Investments in real estate, net — — (245 ) — (245 ) Pay downs of investment securities 9,212 — — — 9,212 Net cash used in (provided by) investing activities (6,130 ) 4,535 (27,937 ) 19,219 (10,313 ) Cash flows from financing activities: Proceeds from issuance of debt 243,225 395 — 243,620 Repayments of debt — (5,226 ) (139 ) — (5,365 ) Deferred financing costs (6,600 ) — — (6,600 ) Borrowings under revolver — 144,294 — — 144,294 Repayments on revolver — (110,614 ) — — (110,614 ) Capital contributions received — 2,800 16,419 (19,219 ) — Intercompany dividends paid — (181,709 ) (56,939 ) 238,648 — Dividends and distributions on common stock (198,947 ) — — — (198,947 ) Distributions to non-controlling interest — — (11,545 ) — (11,545 ) Contributions from non-controlling interest — — 248 — 248 Proceeds from exercise of Vector options 398 — — 398 Tax benefit of options exercised 579 — 579 Net cash provided by (used in) financing activities 38,655 (150,455 ) (51,561 ) 219,429 56,068 Net increase (decrease) in cash and cash equivalents 168,345 (6,096 ) (18,858 ) — 143,391 Cash, cash equivalents and restricted cash, beginning of period 111,470 25,780 117,937 — 255,187 Cash, cash equivalents and restricted cash, end of period $ 279,815 $ 19,684 $ 99,079 $ — $ 398,578 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Components of Cash, cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 584,581 | $ 301,353 | $ 393,530 | |
Restricted cash and cash equivalents included in current restricted assets | 2,697 | 9,081 | 914 | |
Restricted cash and cash equivalents included in non-current restricted assets | 4,451 | 503 | 4,134 | |
Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows | $ 591,729 | $ 310,937 | $ 398,578 | $ 255,187 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Concentration of Credit Risk Narrative) (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales Revenue | First Largest Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | 18.00% | 16.00% |
Sales Revenue | Second Largest Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | 13.00% | 14.00% |
Accounts Receivable | First Largest Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | 7.00% | |
Accounts Receivable | Second Largest Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 4.00% | 5.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Other Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts and cash discounts | $ 766 | $ 398 | |
Tax on payments of dividend equivalent rights | 8,696 | 7,655 | $ 6,258 |
Segment Reporting Information [Line Items] | |||
Shipping and handling fees and costs | 1,292,484 | 1,228,046 | 1,097,344 |
Tobacco and E-Cigarettes | |||
Segment Reporting Information [Line Items] | |||
Advertising costs | 3,672 | 3,712 | 3,397 |
Real Estate | |||
Segment Reporting Information [Line Items] | |||
Shipping and handling fees and costs | 505,233 | 477,278 | 424,829 |
Advertising costs | 23,424 | 19,412 | 22,835 |
Shipping and Handling | |||
Segment Reporting Information [Line Items] | |||
Shipping and handling fees and costs | $ 5,658 | $ 5,012 | $ 5,268 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Property, Plant and Equipment Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | $ (19,982) | $ (12,571) | $ (11,245) |
Accumulated Net Unrealized Investment Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | 108 | 6,097 | 9,869 |
Accumulated other comprehensive (loss) income, tax effect | 60 | 3,687 | 6,272 |
Accumulated Net Gain (Loss) from Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | 0 | 0 | (2) |
Accumulated other comprehensive (loss) income, tax effect | 0 | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | (20,090) | (18,668) | (21,112) |
Accumulated other comprehensive (loss) income, tax effect | $ 13,750 | $ 13,212 | $ 14,491 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Fair Value of Derivatives Embedded within Convertible Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Embedded Derivative [Line Items] | ||
Fair value of derivatives embedded within convertible debt | $ 31,424 | $ 76,413 |
Minimum | ||
Embedded Derivative [Line Items] | ||
Fair value of derivatives embedded within convertible debt | 31,371 | 76,215 |
Maximum | ||
Embedded Derivative [Line Items] | ||
Fair value of derivatives embedded within convertible debt | $ 31,519 | $ 76,874 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Schedule of Other, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Interest and dividend income | $ 11,349 | $ 7,391 | $ 6,018 |
Net periodic benefit cost other than the service costs | (1,020) | (1,960) | (1,508) |
Other income (expense) | 4 | (5) | (273) |
Other, net | $ 10,333 | $ 5,426 | $ 4,237 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | |||
Accounts payable | $ 13,144 | $ 18,552 | |
Accrued promotional expenses | 37,940 | 30,691 | |
Accrued excise and payroll taxes payable, net | 14,612 | 11,946 | |
Accrued interest | 38,673 | 33,138 | |
Commissions payable | 12,975 | 14,320 | |
Accrued salaries and benefits | 30,228 | 29,639 | |
Allowance for sales returns | 6,935 | 5,632 | |
Other current liabilities | 24,646 | 13,205 | |
Total other current liabilities | $ 179,153 | $ 167,454 | $ 157,123 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (New Accounting Pronouncements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating, selling, administrative and general expenses | $ 355,513 | $ 337,191 | $ 339,059 | ||||||||||
Operating income | $ 48,086 | $ 66,018 | $ 61,861 | $ 48,084 | $ 48,204 | $ 59,723 | $ 74,300 | $ 53,421 | 224,049 | 235,648 | 234,505 | ||
Other, net | 10,333 | 5,426 | 4,237 | ||||||||||
Income before provision for income taxes | 79,559 | 89,168 | 126,429 | ||||||||||
(Increase) decrease in restricted assets | 526 | 2,250 | 410 | ||||||||||
Net cash used in investing activities | 43,463 | (35,962) | (10,313) | ||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | 280,792 | (87,641) | 143,391 | ||||||||||
Cash, cash equivalents and restricted cash, beginning of year | 310,937 | 398,578 | 310,937 | 398,578 | 255,187 | ||||||||
Cash and cash equivalents and restricted cash, end of year | $ 591,729 | 310,937 | 591,729 | 310,937 | 398,578 | ||||||||
Impact of adoption of new accounting standards | 8,838 | 8,838 | $ (4,576) | ||||||||||
Accumulated Deficit | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Impact of adoption of new accounting standards | 6,354 | ||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Impact of adoption of new accounting standards | (6,036) | ||||||||||||
Accounting Standards Update 2016-01 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Impact of adoption of new accounting standards | (8,838) | ||||||||||||
Accounting Standards Update 2016-01 | Accumulated Deficit | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Impact of adoption of new accounting standards | (14,874) | ||||||||||||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Impact of adoption of new accounting standards | (6,036) | ||||||||||||
Real Estate | Accounting Standards Update 2014-09 | Accumulated Deficit | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Impact of adoption of new accounting standards | 13,415 | ||||||||||||
As Previously Reported | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating, selling, administrative and general expenses | 339,151 | 340,567 | |||||||||||
Operating income | 233,688 | 232,997 | |||||||||||
Other, net | 7,386 | 5,745 | |||||||||||
Income before provision for income taxes | 89,168 | 126,429 | |||||||||||
(Increase) decrease in restricted assets | (2,286) | 10,181 | |||||||||||
Net cash used in investing activities | (40,498) | (542) | |||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (92,177) | 153,162 | |||||||||||
Cash, cash equivalents and restricted cash, beginning of year | 301,353 | 393,530 | 301,353 | 393,530 | 240,368 | ||||||||
Cash and cash equivalents and restricted cash, end of year | 301,353 | 301,353 | 393,530 | ||||||||||
As Previously Reported | Real Estate | Accounting Standards Update 2014-09 | Accumulated Deficit | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Impact of adoption of new accounting standards | $ (21,695) | ||||||||||||
Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Other, net | 7,022 | 4,732 | |||||||||||
Adjustment | Accounting Standards Update 2016-18 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
(Increase) decrease in restricted assets | 4,536 | (9,771) | |||||||||||
Net cash used in investing activities | 4,536 | (9,771) | |||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | 4,536 | (9,771) | |||||||||||
Cash, cash equivalents and restricted cash, beginning of year | $ 9,584 | $ 5,048 | $ 9,584 | 5,048 | 14,819 | ||||||||
Cash and cash equivalents and restricted cash, end of year | $ 9,584 | 9,584 | 5,048 | ||||||||||
Adjustment | Accounting Standards Update 2017-07 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating, selling, administrative and general expenses | (1,960) | (1,508) | |||||||||||
Operating income | 1,960 | 1,508 | |||||||||||
Other, net | (1,960) | (1,508) | |||||||||||
Income before provision for income taxes | $ 0 | $ 0 | |||||||||||
Minimum | Forecast | Accounting Standards Update 2016-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Impact of adoption of new accounting standards | $ 130,000 | ||||||||||||
Maximum | Forecast | Accounting Standards Update 2016-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Impact of adoption of new accounting standards | $ 160,000 |
Revenue Recognition - New Accou
Revenue Recognition - New Accounting Pronouncement (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | ||||||||||||||
Accounts receivable - trade, net | $ 33,995 | $ 34,246 | $ 29,481 | $ 34,246 | $ 29,481 | |||||||||
Other current assets | 28,770 | 26,351 | 21,121 | 26,351 | 21,121 | |||||||||
Total current assets | 625,872 | 872,221 | 613,709 | 872,221 | 613,709 | |||||||||
Other assets | 46,298 | 60,177 | 36,786 | 60,177 | 36,786 | |||||||||
Total assets | 1,349,953 | 1,549,504 | 1,328,278 | 1,549,504 | 1,328,278 | $ 1,404,035 | ||||||||
Current liabilities: | ||||||||||||||
Income taxes payable, net | 5,252 | 100 | 5,252 | 100 | ||||||||||
Other current liabilities | 167,454 | 179,153 | 157,123 | 179,153 | 157,123 | |||||||||
Total current liabilities | 214,970 | 484,920 | 204,639 | 484,920 | 204,639 | |||||||||
Deferred income taxes, net | 55,577 | 37,411 | 58,801 | 37,411 | 58,801 | |||||||||
Other liabilities | 50,363 | 63,588 | 22,380 | 63,588 | 22,380 | |||||||||
Total liabilities | 1,695,128 | 2,096,870 | 1,660,038 | 2,096,870 | 1,660,038 | |||||||||
Accumulated deficit | (423,306) | (542,169) | (414,785) | (542,169) | (414,785) | |||||||||
Total Vector Group Ltd. stockholders' deficiency | (422,440) | (548,059) | (413,919) | (548,059) | (413,919) | |||||||||
Non-controlling interest | 77,265 | 693 | 82,159 | 693 | 82,159 | |||||||||
Total stockholders' deficiency | (345,175) | (547,366) | (331,760) | (547,366) | (331,760) | (253,272) | $ (122,161) | |||||||
Total liabilities and stockholders' deficiency | 1,349,953 | 1,549,504 | 1,328,278 | 1,549,504 | 1,328,278 | |||||||||
Revenues: | ||||||||||||||
Revenues | 445,939 | $ 513,869 | $ 481,488 | $ 428,966 | 435,654 | $ 484,625 | $ 471,989 | $ 415,208 | 1,870,262 | 1,807,476 | 1,690,949 | |||
Cost of sales: | ||||||||||||||
Total cost of sales | 1,292,484 | 1,228,046 | 1,097,344 | |||||||||||
Operating, selling, administrative and general expenses | 355,513 | 337,191 | 339,059 | |||||||||||
Operating income | 48,086 | 66,018 | 61,861 | 48,084 | 48,204 | 59,723 | 74,300 | 53,421 | 224,049 | 235,648 | 234,505 | |||
Income before provision for income taxes | 79,559 | 89,168 | 126,429 | |||||||||||
Income tax expense (benefit) | 21,552 | (1,582) | 49,163 | |||||||||||
Net income | 20,319 | 15,028 | 18,996 | 3,664 | 42,951 | 20,478 | 31,546 | (4,225) | 58,007 | 90,750 | 77,266 | |||
Net loss (income) attributed to non-controlling interest | 98 | (6,178) | (6,139) | |||||||||||
Net income attributed to Vector Group Ltd. | $ 21,074 | $ 12,002 | $ 17,818 | $ 7,211 | $ 42,724 | $ 19,264 | $ 26,811 | $ (4,227) | $ 58,105 | $ 84,572 | $ 71,127 | |||
Per basic common share: | ||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. (in dollars per share) | $ 0.14 | $ 0.07 | $ 0.12 | $ 0.04 | $ 0.30 | $ 0.13 | $ 0.18 | $ (0.04) | $ 0.37 | $ 0.56 | $ 0.50 | |||
Per diluted common share: | ||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. (in dollars per share) | $ 0.14 | $ 0.07 | $ 0.12 | $ 0.04 | $ 0.26 | $ 0.13 | $ 0.18 | $ (0.04) | $ 0.37 | $ 0.56 | $ 0.50 | |||
Impact of adoption of new accounting standard, increase to beginning retained earnings | $ 4,576 | $ (8,838) | $ (8,838) | |||||||||||
Accounting Standards Update 2014-09 | ||||||||||||||
Current assets: | ||||||||||||||
Other assets | $ 7,171 | $ 7,171 | ||||||||||||
Per diluted common share: | ||||||||||||||
Annual effective tax rate | 35.49% | |||||||||||||
Deferred tax rate | 27.26% | |||||||||||||
Tobacco | ||||||||||||||
Revenues: | ||||||||||||||
Revenues | [1] | 1,111,094 | 1,080,950 | $ 1,011,620 | ||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | [1] | 787,251 | 750,768 | 672,431 | ||||||||||
Real Estate | ||||||||||||||
Revenues: | ||||||||||||||
Revenues | 759,168 | 727,364 | 680,105 | |||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | 505,233 | 477,278 | 424,829 | |||||||||||
Real Estate | Accounting Standards Update 2014-09 | ||||||||||||||
Per diluted common share: | ||||||||||||||
Relative ownership interest | 70.59% | |||||||||||||
Relative ownership interest | 29.41% | |||||||||||||
Real Estate | Accounting Standards Update 2014-09 | Real Estate Commercial Leasing | ||||||||||||||
Current liabilities: | ||||||||||||||
Other current liabilities | $ 3,139 | |||||||||||||
Real Estate | Accounting Standards Update 2014-09 | Real Estate Development Marketing | ||||||||||||||
Current liabilities: | ||||||||||||||
Other current liabilities | 4,667 | |||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||||||||||||
Current assets: | ||||||||||||||
Accounts receivable - trade, net | 32,196 | 32,196 | ||||||||||||
Other current assets | 17,085 | 17,085 | ||||||||||||
Total current assets | 860,905 | 860,905 | ||||||||||||
Other assets | 47,068 | 47,068 | ||||||||||||
Total assets | 1,525,079 | 1,525,079 | ||||||||||||
Current liabilities: | ||||||||||||||
Income taxes payable, net | 5,375 | 5,375 | ||||||||||||
Other current liabilities | 168,905 | 168,905 | ||||||||||||
Total current liabilities | 474,795 | 474,795 | ||||||||||||
Deferred income taxes, net | 40,563 | 40,563 | ||||||||||||
Other liabilities | 33,143 | 33,143 | ||||||||||||
Total liabilities | 2,059,452 | 2,059,452 | ||||||||||||
Accumulated deficit | (533,961) | (533,961) | ||||||||||||
Total Vector Group Ltd. stockholders' deficiency | (539,851) | (539,851) | ||||||||||||
Non-controlling interest | 5,478 | 5,478 | ||||||||||||
Total stockholders' deficiency | (534,373) | (534,373) | ||||||||||||
Total liabilities and stockholders' deficiency | 1,525,079 | 1,525,079 | ||||||||||||
Revenues: | ||||||||||||||
Revenues | 1,878,282 | |||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | 1,293,907 | |||||||||||||
Operating, selling, administrative and general expenses | 362,481 | |||||||||||||
Operating income | 223,678 | |||||||||||||
Income before provision for income taxes | 79,188 | |||||||||||||
Income tax expense (benefit) | 21,501 | |||||||||||||
Net income | 57,687 | |||||||||||||
Net loss (income) attributed to non-controlling interest | 207 | |||||||||||||
Net income attributed to Vector Group Ltd. | $ 57,894 | |||||||||||||
Per basic common share: | ||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. (in dollars per share) | $ 0.36 | |||||||||||||
Per diluted common share: | ||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. (in dollars per share) | $ 0.36 | |||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | Tobacco | ||||||||||||||
Revenues: | ||||||||||||||
Revenues | $ 1,112,733 | |||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | 781,163 | |||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | Real Estate | ||||||||||||||
Revenues: | ||||||||||||||
Revenues | 765,549 | |||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | 512,744 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||||||||||
Current assets: | ||||||||||||||
Accounts receivable - trade, net | 2,050 | 2,050 | ||||||||||||
Other current assets | 9,266 | 9,266 | ||||||||||||
Total current assets | 11,316 | 11,316 | ||||||||||||
Other assets | 13,109 | 13,109 | ||||||||||||
Total assets | 24,425 | 24,425 | ||||||||||||
Current liabilities: | ||||||||||||||
Income taxes payable, net | (123) | (123) | ||||||||||||
Other current liabilities | 10,248 | 10,248 | ||||||||||||
Total current liabilities | 10,125 | 10,125 | ||||||||||||
Deferred income taxes, net | (3,152) | (3,152) | ||||||||||||
Other liabilities | 30,445 | 30,445 | ||||||||||||
Total liabilities | 37,418 | 37,418 | ||||||||||||
Accumulated deficit | (8,208) | (8,208) | ||||||||||||
Total Vector Group Ltd. stockholders' deficiency | (8,208) | (8,208) | ||||||||||||
Non-controlling interest | (4,785) | (4,785) | ||||||||||||
Total stockholders' deficiency | (12,993) | (12,993) | ||||||||||||
Total liabilities and stockholders' deficiency | 24,425 | 24,425 | ||||||||||||
Revenues: | ||||||||||||||
Revenues | (8,020) | |||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | (1,423) | |||||||||||||
Operating, selling, administrative and general expenses | (6,968) | |||||||||||||
Operating income | 371 | |||||||||||||
Income before provision for income taxes | 371 | |||||||||||||
Income tax expense (benefit) | 51 | |||||||||||||
Net income | 320 | |||||||||||||
Net loss (income) attributed to non-controlling interest | (109) | |||||||||||||
Net income attributed to Vector Group Ltd. | 211 | |||||||||||||
Per diluted common share: | ||||||||||||||
Revenue recognized for performance obligations satisfied | 18,683 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Real Estate Commercial Leasing | ||||||||||||||
Current liabilities: | ||||||||||||||
Other current liabilities | 1,082 | 1,082 | ||||||||||||
Revenues: | ||||||||||||||
Revenues | 4,677 | |||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | (2,057) | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Real Estate Development Marketing | ||||||||||||||
Revenues: | ||||||||||||||
Revenues | 20,385 | |||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | 18,322 | |||||||||||||
Operating, selling, administrative and general expenses | 949 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Incentive Payments [Member] | ||||||||||||||
Revenues: | ||||||||||||||
Revenues | 2,069 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Tobacco Shipping and Handling Costs | ||||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | 5,658 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Real Estate Business | ||||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | (7,511) | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Tobacco Sales Returns | ||||||||||||||
Current liabilities: | ||||||||||||||
Other current liabilities | 2,095 | 2,095 | ||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | 430 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Previously Deferred Contract Costs | ||||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | 12,678 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Real Estate Commercial Leasing Commissions | ||||||||||||||
Revenues: | ||||||||||||||
Revenues | (2,464) | |||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | 2,837 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Tobacco | Accounting Standards Update 2014-09 | ||||||||||||||
Current assets: | ||||||||||||||
Accounts receivable - trade, net | 0 | |||||||||||||
Other current assets | 2,525 | |||||||||||||
Total current assets | 2,525 | |||||||||||||
Other assets | 0 | |||||||||||||
Total assets | 2,525 | |||||||||||||
Current liabilities: | ||||||||||||||
Other current liabilities | 2,525 | |||||||||||||
Total current liabilities | 2,525 | |||||||||||||
Deferred income taxes, net | 0 | |||||||||||||
Other liabilities | 0 | |||||||||||||
Total liabilities | 2,525 | |||||||||||||
Accumulated deficit | 0 | |||||||||||||
Total Vector Group Ltd. stockholders' deficiency | 0 | |||||||||||||
Non-controlling interest | 0 | |||||||||||||
Total stockholders' deficiency | 0 | |||||||||||||
Total liabilities and stockholders' deficiency | 2,525 | |||||||||||||
Revenues: | ||||||||||||||
Revenues | (1,639) | |||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | 6,088 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Real Estate | Accounting Standards Update 2014-09 | ||||||||||||||
Current assets: | ||||||||||||||
Accounts receivable - trade, net | 4,514 | |||||||||||||
Other current assets | 5,124 | |||||||||||||
Total current assets | 9,638 | |||||||||||||
Other assets | 9,512 | |||||||||||||
Total assets | 19,150 | |||||||||||||
Current liabilities: | ||||||||||||||
Other current liabilities | 7,806 | |||||||||||||
Total current liabilities | 7,806 | |||||||||||||
Deferred income taxes, net | (3,224) | (5,217) | (5,217) | |||||||||||
Other liabilities | 27,983 | |||||||||||||
Total liabilities | 32,565 | |||||||||||||
Accumulated deficit | (8,521) | |||||||||||||
Total Vector Group Ltd. stockholders' deficiency | (8,521) | |||||||||||||
Non-controlling interest | (4,894) | |||||||||||||
Total stockholders' deficiency | (13,415) | |||||||||||||
Total liabilities and stockholders' deficiency | 19,150 | |||||||||||||
Revenues: | ||||||||||||||
Revenues | (6,381) | |||||||||||||
Cost of sales: | ||||||||||||||
Total cost of sales | (7,511) | |||||||||||||
As Previously Reported | ||||||||||||||
Cost of sales: | ||||||||||||||
Operating, selling, administrative and general expenses | 339,151 | 340,567 | ||||||||||||
Operating income | 233,688 | 232,997 | ||||||||||||
Income before provision for income taxes | 89,168 | 126,429 | ||||||||||||
As Previously Reported | Calculated under Revenue Guidance in Effect before Topic 606 | ||||||||||||||
Current assets: | ||||||||||||||
Accounts receivable - trade, net | 29,481 | 29,481 | ||||||||||||
Other current assets | 21,121 | 21,121 | ||||||||||||
Total current assets | 613,709 | 613,709 | ||||||||||||
Other assets | 36,786 | 36,786 | ||||||||||||
Total assets | 1,328,278 | 1,328,278 | ||||||||||||
Current liabilities: | ||||||||||||||
Other current liabilities | 157,123 | 157,123 | ||||||||||||
Total current liabilities | 204,639 | 204,639 | ||||||||||||
Deferred income taxes, net | 58,801 | 58,801 | ||||||||||||
Other liabilities | 22,380 | 22,380 | ||||||||||||
Total liabilities | 1,660,038 | 1,660,038 | ||||||||||||
Accumulated deficit | (414,785) | (414,785) | ||||||||||||
Total Vector Group Ltd. stockholders' deficiency | (413,919) | (413,919) | ||||||||||||
Non-controlling interest | 82,159 | 82,159 | ||||||||||||
Total stockholders' deficiency | (331,760) | (331,760) | ||||||||||||
Total liabilities and stockholders' deficiency | 1,328,278 | 1,328,278 | ||||||||||||
As Previously Reported | Difference between Revenue Guidance in Effect before and after Topic 606 | Real Estate | Accounting Standards Update 2014-09 | ||||||||||||||
Current assets: | ||||||||||||||
Other current assets | 623 | |||||||||||||
Other assets | 3,740 | |||||||||||||
Accumulated Deficit | ||||||||||||||
Current liabilities: | ||||||||||||||
Total stockholders' deficiency | $ (542,169) | $ (414,785) | (542,169) | (414,785) | (333,529) | $ (210,113) | ||||||||
Cost of sales: | ||||||||||||||
Net income | $ 58,105 | $ 84,572 | $ 71,127 | |||||||||||
Per diluted common share: | ||||||||||||||
Impact of adoption of new accounting standard, increase to beginning retained earnings | (6,354) | |||||||||||||
Accumulated Deficit | Real Estate | Accounting Standards Update 2014-09 | ||||||||||||||
Per diluted common share: | ||||||||||||||
Impact of adoption of new accounting standard, increase to beginning retained earnings | (13,415) | |||||||||||||
Accumulated Deficit | As Previously Reported | Real Estate | Accounting Standards Update 2014-09 | ||||||||||||||
Per diluted common share: | ||||||||||||||
Impact of adoption of new accounting standard, increase to beginning retained earnings | $ 21,695 | |||||||||||||
[1] | Revenues and cost of sales include federal excise taxes of $469,836 , $460,561 and $425,980 for the years ended December 31, 2018 , 2017 and 2016 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 445,939 | $ 513,869 | $ 481,488 | $ 428,966 | $ 435,654 | $ 484,625 | $ 471,989 | $ 415,208 | $ 1,870,262 | $ 1,807,476 | $ 1,690,949 |
Tobacco | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,111,094 | 1,080,950 | 1,011,620 | ||||||||
Tobacco | Core Discount Brands - Pyramid, Grand Prix, Liggett Select, Eve and EAGLE 20’s | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,005,071 | 969,796 | 892,507 | ||||||||
Tobacco | Other Brands | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 106,023 | 111,154 | 119,113 | ||||||||
Real Estate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 759,168 | 727,364 | 680,105 | ||||||||
Total real estate revenues | 759,168 | 727,364 | 680,105 | ||||||||
Real Estate | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 366,032 | 401,304 | 422,916 | ||||||||
Real Estate | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 172,348 | 175,201 | 163,504 | ||||||||
Real Estate | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 114,788 | 90,758 | 69,410 | ||||||||
Real Estate | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 106,000 | 60,101 | 24,275 | ||||||||
Real Estate | Commission and other brokerage income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 651,171 | 633,093 | 553,158 | ||||||||
Real Estate | Commission and other brokerage income | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 285,325 | 332,319 | 317,397 | ||||||||
Real Estate | Commission and other brokerage income | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 166,100 | 168,834 | 158,017 | ||||||||
Real Estate | Commission and other brokerage income | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 99,720 | 79,547 | 58,875 | ||||||||
Real Estate | Commission and other brokerage income | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 100,026 | 52,393 | 18,869 | ||||||||
Real Estate | Development marketing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 64,287 | 52,061 | 87,893 | ||||||||
Real Estate | Development marketing | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 48,072 | 37,761 | 76,278 | ||||||||
Real Estate | Development marketing | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 252 | 402 | 521 | ||||||||
Real Estate | Development marketing | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 15,068 | 11,211 | 10,535 | ||||||||
Real Estate | Development marketing | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 895 | 2,687 | 559 | ||||||||
Real Estate | Property management income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 33,350 | 31,924 | 29,883 | ||||||||
Real Estate | Property management income | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 32,635 | 31,224 | 29,241 | ||||||||
Real Estate | Property management income | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 715 | 700 | 642 | ||||||||
Real Estate | Property management income | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 0 | 0 | 0 | ||||||||
Real Estate | Property management income | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 0 | 0 | 0 | ||||||||
Real Estate | Title fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 5,281 | 5,265 | 4,324 | ||||||||
Real Estate | Title fees | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 0 | 0 | 0 | ||||||||
Real Estate | Title fees | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 5,281 | 5,265 | 4,324 | ||||||||
Real Estate | Title fees | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 0 | 0 | 0 | ||||||||
Real Estate | Title fees | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 0 | 0 | 0 | ||||||||
Real Estate | Total Douglas Elliman Realty revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 754,089 | 722,343 | 675,258 | ||||||||
Real Estate | Total Douglas Elliman Realty revenue | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 366,032 | 401,304 | 422,916 | ||||||||
Real Estate | Total Douglas Elliman Realty revenue | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 172,348 | 175,201 | 163,504 | ||||||||
Real Estate | Total Douglas Elliman Realty revenue | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 114,788 | 90,758 | 69,410 | ||||||||
Real Estate | Total Douglas Elliman Realty revenue | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 100,921 | 55,080 | 19,428 | ||||||||
Real Estate | Other real estate revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 5,079 | 5,021 | 4,847 | ||||||||
Real Estate | Other real estate revenues | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 0 | 0 | 0 | ||||||||
Real Estate | Other real estate revenues | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 0 | 0 | 0 | ||||||||
Real Estate | Other real estate revenues | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 0 | 0 | 0 | ||||||||
Real Estate | Other real estate revenues | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | $ 5,079 | $ 5,021 | $ 4,847 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, which are included in accounts receivable - trade, net | $ 4,514 | $ 2,050 |
Contract costs, net, which are included in other current assets | 7,217 | 9,264 |
Payables, which are included in other current liabilities | 3,139 | 1,082 |
Contract liabilities, which are included in other current liabilities | 4,667 | 7,071 |
Contract costs, net, which are included in other assets | 12,197 | 15,794 |
Contract liabilities, which are included in other liabilities | 27,983 | $ 30,445 |
Commercial leasing contracts, receivable and payable term expectation | 12 months | |
Contract liabilities estimated to be recognized over next twelve months | $ 7,071 | |
Contract liabilities increase | 4,866 | |
Advance payments received from customer | 20,385 | |
Revenue recognized on contract liabilities | $ 12,135 | |
Revenue recognized relating to performance obligations satisfied or partially satisfied in prior periods | $ 0 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation term | 2 years |
Earnings Per Share Narrative (D
Earnings Per Share Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 27, 2018 | Sep. 28, 2017 | Sep. 29, 2016 | |
Class of Stock [Line Items] | ||||||
Stock dividend paid to company stockholders | 5.00% | 5.00% | 5.00% | |||
Effect of stock dividend | $ 0 | $ 0 | $ 0 | |||
Increase in number of shares subject to outstanding stock options | 5.00% | 5.00% | ||||
Dividend equivalent rights | $ 8,696 | $ 7,655 | 6,258 | |||
Tax on payments of dividend equivalent rights | 0 | 0 | 435 | |||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Effect of stock dividend | $ 671 | $ 644 | $ 609 |
Earnings Per Share (Net Income
Earnings Per Share (Net Income (Loss) for Purposes of Determining Basic and Diluted EPS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributed to Vector Group Ltd. | $ 21,074 | $ 12,002 | $ 17,818 | $ 7,211 | $ 42,724 | $ 19,264 | $ 26,811 | $ (4,227) | $ 58,105 | $ 84,572 | $ 71,127 |
Income attributed to participating securities | (7,016) | (6,071) | (2,241) | ||||||||
Income attributed to participating securities | (7,016) | (6,071) | (2,241) | ||||||||
Net income available to common shares attributed to Vector Group Ltd. | 51,089 | 78,501 | 68,886 | ||||||||
Net income available to common shares attributed to Vector Group Ltd. | $ 51,089 | $ 78,501 | $ 68,886 |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted Earnings Per Share (in shares)) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Weighted-average shares for basic EPS | 139,392,638 | 139,035,240 | 136,745,044 |
Plus incremental shares related to stock options and non-vested restricted stock | 116,707 | 271,254 | 251,139 |
Weighted-average shares for diluted EPS | 139,509,345 | 139,306,494 | 136,996,183 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities Excluded from Earnings Per Share) (Details) - Weighted-average number of shares issuable upon conversion of debt - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiliitive securities excluded from computation (in shares) | 28,773,728 | 28,819,626 | 28,819,626 |
Weighted-average conversion price (in dollars per share) | $ 16.95 | $ 16.96 | $ 16.96 |
Investment Securities Availab_3
Investment Securities Available for Sale (Components of Investment Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities available for sale | $ 84,367 | $ 84,814 |
Equity securities available for sale | 0 | 65,675 |
Equity securities at fair value | 47,202 | 0 |
Debt Securities, Trading, and Equity Securities, FV-NI | 131,569 | 150,489 |
Cost | 140,705 | |
Gross Unrealized Gains | 11,193 | |
Gross Unrealized Losses | (1,409) | |
Fair Value | 131,569 | |
Marketable equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 26,010 | |
U.S. equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 44,634 | |
Cost | 35,020 | |
Gross Unrealized Gains | 10,994 | |
Gross Unrealized Losses | (1,380) | |
Fair Value | 47,202 | |
Mutual funds invested in fixed income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 21,041 | |
Cost | 20,977 | |
Gross Unrealized Gains | 93 | |
Gross Unrealized Losses | (29) | |
Fair Value | 21,192 | |
Marketable debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 84,367 | |
Cost | 84,199 | |
Gross Unrealized Gains | 168 | |
Gross Unrealized Losses | 0 | |
Marketable debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities available for sale | 84,367 | |
Debt Securities, Trading, and Equity Securities, FV-NI | 84,814 | |
Cost | 84,708 | |
Gross Unrealized Gains | 106 | |
Gross Unrealized Losses | $ 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 47,202 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 26,010 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 47,202 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds invested in fixed income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 21,192 |
Investment Securities Availab_4
Investment Securities Available for Sale (Maturity Dates of Marketable Debt Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | $ 84,367 | $ 84,814 |
U.S. Government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 28,514 | |
Under 1 Year | 14,929 | |
1 Year up to 5 Years | 13,585 | |
More than 5 Years | 0 | |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 41,733 | |
Under 1 Year | 10,383 | |
1 Year up to 5 Years | 31,350 | |
More than 5 Years | 0 | |
U.S. mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 4,369 | |
Under 1 Year | 802 | |
1 Year up to 5 Years | 3,567 | |
More than 5 Years | 0 | |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 401 | |
Under 1 Year | 0 | |
1 Year up to 5 Years | 401 | |
More than 5 Years | 0 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 5,870 | |
Under 1 Year | 5,870 | |
1 Year up to 5 Years | 0 | |
More than 5 Years | 0 | |
Index-linked U.S. bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 2,330 | |
Under 1 Year | 1,569 | |
1 Year up to 5 Years | 761 | |
More than 5 Years | 0 | |
Foreign fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 1,150 | |
Under 1 Year | 650 | |
1 Year up to 5 Years | 500 | |
More than 5 Years | 0 | |
Marketable debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 84,367 | |
Under 1 Year | 34,203 | |
1 Year up to 5 Years | 50,164 | |
More than 5 Years | $ 0 |
Investment Securities Availab_5
Investment Securities Available for Sale (Securities with Continuous Unrealized Losses) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
In loss position for Less than 12 months, Fair Value | $ 20,006 |
In loss position for Less than 12 months, Unrealized Losses | (1,409) |
Total Fair Value | 20,006 |
In loss position for 12 months or more, Fair Value | 0 |
In loss position for 12 months or more, Unrealized Losses | 0 |
Total Unrealized Losses | (1,409) |
U.S. equity securities | |
Debt Securities, Available-for-sale [Line Items] | |
In loss position for Less than 12 months, Fair Value | 9,523 |
In loss position for Less than 12 months, Unrealized Losses | (1,380) |
Total Fair Value | 9,523 |
In loss position for 12 months or more, Fair Value | 0 |
In loss position for 12 months or more, Unrealized Losses | 0 |
Total Unrealized Losses | (1,380) |
Mutual funds invested in fixed income securities | |
Debt Securities, Available-for-sale [Line Items] | |
In loss position for Less than 12 months, Fair Value | 10,483 |
In loss position for Less than 12 months, Unrealized Losses | (29) |
Total Fair Value | 10,483 |
In loss position for 12 months or more, Fair Value | 0 |
In loss position for 12 months or more, Unrealized Losses | 0 |
Total Unrealized Losses | $ (29) |
Investment Securities Availab_6
Investment Securities Available for Sale (Gross Realized Gains and Losses on Investment Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net losses recognized equity securities | $ (8,449) | ||
Net (losses) gains recognized on debt securities available for sale | (34) | $ 2 | $ 261 |
Net gains recognized on equity securities available for sale | 167 | 2,646 | |
Impairments on debt securities available for sale | (1,087) | (390) | (490) |
Gross realized losses on other-than-temporary impairments | (75) | (4,891) | |
Gains on long-term investments | 0 | 162 | 190 |
Impairments of long-term investments | 0 | (526) | (1,203) |
Net losses recognized on investment securities | (9,570) | (660) | (3,487) |
Gross realized gains on sales | 4 | 479 | 3,408 |
Gross realized losses on sales | (38) | (310) | (501) |
Net (losses) gains on sale of debt and equity securities available for sale | (34) | 169 | 2,907 |
Net losses recognized on investment securities | (8,449) | ||
Less: Net losses recognized on equity securities sold | 808 | ||
Net unrealized losses recognized on equity securities still held at the reporting date | 7,641 | ||
Gross realized losses on other-than-temporary impairments | (1,087) | $ (465) | $ (5,381) |
Net losses recognized on equity securities at fair value that qualify for the NAV practical expedient | $ (517) |
Investment Securities Availab_7
Investment Securities Available for Sale (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale [Line Items] | |||
Investment securities at fair value | $ 131,569 | $ 150,489 | |
Net unrealized gains related to equity securities had been recognized in AOCI | 9,681 | ||
Proceeds from investment securities sales | 18,628 | 28,761 | $ 116,070 |
Equity securities without readily determinable fair values | 5,000 | 5,428 | |
Impairment or other adjustments | 0 | ||
U.S. equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment securities at fair value | 44,634 | ||
Mutual funds invested in fixed income securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment securities at fair value | 21,041 | ||
Corporate Securities and U.S. Government Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Maturities of investment securities | $ 26,330 | $ 103,730 | $ 20,034 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Leaf tobacco | $ 42,917 | $ 45,801 |
Other raw materials | 3,750 | 3,272 |
Work-in-process | 1,931 | 358 |
Finished goods | 63,937 | 63,363 |
Inventories at current cost | 112,535 | 112,794 |
LIFO adjustments | (21,538) | (23,004) |
Inventory, net | $ 90,997 | $ 89,790 |
Inventories (Narrartive) (Detai
Inventories (Narrartive) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory [Line Items] | ||
LIFO adjustments | $ 21,538 | $ 23,004 |
Capitalized MSA cost in finished goods inventory | 16,001 | 17,440 |
Inventories | ||
Inventory [Line Items] | ||
Federal excise tax in inventory | 26,419 | 25,151 |
Cost of Goods Sold | ||
Inventory [Line Items] | ||
Effect of liquidations of LIFO inventory | 567 | 1,333 |
Liggett | Inventories | ||
Inventory [Line Items] | ||
Purchase commitments | 19,034 | |
Leaf tobacco | ||
Inventory [Line Items] | ||
LIFO adjustments | 14,932 | 16,442 |
Other raw materials | ||
Inventory [Line Items] | ||
LIFO adjustments | 219 | 123 |
Work-in-process | ||
Inventory [Line Items] | ||
LIFO adjustments | 25 | 18 |
Finished goods | ||
Inventory [Line Items] | ||
LIFO adjustments | $ 6,362 | $ 6,421 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 268,514 | $ 254,465 | |
Less accumulated depreciation and amortization | (181,778) | (168,949) | |
Property, plant and equipment, net | 86,736 | 85,516 | |
Depreciation and amortization expense | 17,506 | 17,479 | $ 20,782 |
Liggett | Capital Addition Purchase Commitments [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Future machinery and equipment purchase commitments | 1,233 | ||
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,624 | 1,442 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 16,919 | 16,280 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 198,649 | 190,983 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 51,322 | $ 45,760 |
Long-Term Investments (Investme
Long-Term Investments (Investments) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)investment | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Equity securities at fair value that qualify for the NAV practical expedient | $ 54,628 | $ 0 | |
Investments accounted at cost | 0 | 65,450 | |
Equity-method investments | 11,631 | 15,841 | |
Long-term investments | $ 66,259 | 81,291 | |
Impact of adoption of new accounting standards | $ (4,576) | 8,838 | |
Number of investments redeemed that qualify for the NAV practical expedient | investment | 2 | ||
Percent of other investments redeemed that qualify for the NAV practical expedient | 50.00% | ||
Equity securities without readily determinable fair values | $ 5,000 | $ 5,428 | |
Other Assets [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity securities without readily determinable fair values | $ 5,000 |
Long-Term Investments (Cost-Met
Long-Term Investments (Cost-Method Investments) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)investment | Dec. 31, 2016USD ($) | |
Schedule of Investments [Line Items] | |||
Cost-method investments, carrying value | $ 0 | $ 65,450 | |
Cost-method investments, fair value | 74,111 | ||
Purchase of long-term investments | $ 415 | 32,510 | $ 50 |
Cash distributions from cost method investments | (1,163) | $ (4,741) | |
Investment partnerships | |||
Schedule of Investments [Line Items] | |||
Cost-method investments, carrying value | 65,450 | ||
Cost-method investments, fair value | 74,111 | ||
Investment partnerships | Five New Investment Funds | |||
Schedule of Investments [Line Items] | |||
Purchase of long-term investments | $ 30,000 | ||
Number of investments in funds | investment | 6 | ||
Investment partnerships | One Existing Investment | |||
Schedule of Investments [Line Items] | |||
Purchase of long-term investments | $ 1,500 | ||
Number of investments in funds | investment | 3 |
Long-Term Investments (Equity-M
Long-Term Investments (Equity-Method Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity-method investments | $ 11,631 | $ 11,631 | $ 15,841 | |
Proceeds from long-term equity method investment | (13,952) | $ (7,007) | (1,239) | $ (1,158) |
Percent of other investments redeemed that qualify for the NAV practical expedient | 50.00% | |||
Equity in (earnings) losses from long-term investments | $ (3,158) | 765 | $ 2,754 | |
Indian Creek Investors LP (“Indian Creek”) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-method investments | $ 1,167 | $ 1,167 | 4,498 | |
Equity method ownership percentage | 12.61% | 12.61% | ||
Percent of other investments redeemed that qualify for the NAV practical expedient | 50.00% | |||
Boyar Value Fund (“Boyar”) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-method investments | $ 8,384 | $ 8,384 | 9,026 | |
Equity method ownership percentage | 34.27% | 34.27% | ||
Quoted market value | $ 8,384 | $ 8,384 | ||
Ladenburg Thalmann Financial Services Inc. (“LTS”) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-method investments | $ 2,080 | $ 2,080 | 2,317 | |
Equity method ownership percentage | 10.36% | 10.36% | ||
Quoted market value | $ 35,396 | $ 35,396 | ||
Castle Brands | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-method investments | $ 0 | $ 0 | $ 0 | |
Equity method ownership percentage | 7.66% | 7.66% | ||
Quoted market value | $ 10,961 | $ 10,961 | ||
Difference between carrying value and underlying equity | 695 | 695 | ||
Ladenburg Thalmann Financial Services | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Difference between carrying value and underlying equity | $ 27,167 | 27,167 | ||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from long-term equity method investment | (5,535) | |||
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from long-term equity method investment | $ (1,472) |
Long-Term Investments (Combined
Long-Term Investments (Combined Financial Statements for Unconsolidated Subsidiaries Accounted for on Equity Method) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Castle Brands | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Current assets | $ 57,047 | $ 49,328 | ||||
Non-current assets | 8,359 | 8,783 | ||||
Total assets | 65,406 | 58,111 | ||||
Current liabilities | 13,440 | 17,586 | ||||
Non-current liabilities | 42,892 | 35,296 | ||||
Total liabilities | 56,332 | 52,882 | ||||
Non-controlling interest | 4,167 | 2,843 | ||||
Non-controlling interest | 4,907 | 2,386 | ||||
Partners’ capital | 9,074 | 5,229 | ||||
Total liabilities and partners’ capital | 65,406 | 58,111 | ||||
Revenues | 94,567 | 82,636 | $ 73,549 | |||
Expenses | 57,083 | 48,257 | 44,236 | |||
Gross profit | 37,484 | 34,379 | 29,313 | |||
Other expenses | 32,769 | 31,404 | 28,338 | |||
Income from continuing operations | 4,715 | 2,975 | 975 | |||
Net income (loss) | 546 | 1,008 | (1,263) | |||
Ladenburg Thalmann Financial Services | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cash and cash equivalents | 262,834 | 100,739 | ||||
Receivables from clearing brokers, note receivable and other receivable, net | 165,149 | 139,497 | ||||
Goodwill and intangible assets, net | 200,199 | 233,007 | ||||
Other assets | 172,409 | 79,372 | ||||
Total assets | 800,591 | 552,615 | ||||
Other liabilities | 37,658 | 31,718 | ||||
Accrued compensation, commissions and fees payable | 141,260 | 90,991 | ||||
Accounts payable and accrued liabilities | 50,122 | 42,895 | ||||
Notes payable, net of $115 and $535 unamortized discount in 2018 and 2017, respectively | 185,199 | 28,182 | ||||
Unamortized discount | 115 | 535 | ||||
Total liabilities | 414,239 | 193,786 | ||||
Preferred stock | 2 | 2 | ||||
Common stock | 20 | 20 | ||||
Additional paid-in capital | 487,752 | 515,208 | ||||
Accumulated deficit | (101,467) | (156,423) | ||||
Non-controlling interest | 386,307 | 358,807 | ||||
Non-controlling interest | 45 | 22 | ||||
Partners’ capital | 386,352 | 358,829 | ||||
Total liabilities and partners’ capital | 800,591 | 552,615 | ||||
Revenues | 1,380,031 | 1,221,195 | 1,104,227 | |||
Expenses | 1,345,768 | 1,217,331 | 1,119,366 | |||
Gross profit | 34,263 | 3,864 | (15,139) | |||
Change in fair value of contingent consideration | (232) | 48 | (154) | |||
Income from continuing operations | 34,031 | 3,912 | (15,293) | |||
Net income (loss) | $ 30,858 | $ 1,669 | $ (25,159) | |||
Indian Creek and Boyar Value Fund | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment securities | $ 33,830 | $ 48,050 | ||||
Cash and cash equivalents | 521 | 1,719 | ||||
Other assets | 33 | 74 | ||||
Total assets | 34,384 | 49,843 | ||||
Other liabilities | 738 | 3,007 | ||||
Total liabilities | 738 | 3,007 | ||||
Partners’ capital | 33,646 | 46,836 | ||||
Total liabilities and partners’ capital | 34,384 | 49,843 | ||||
Revenues | 549 | 792 | $ 438 | |||
Expenses | 861 | 690 | 684 | |||
Gross profit | (312) | 102 | (246) | |||
Total net realized (loss) gain and net change in unrealized depreciation from investments | (5,781) | 100 | 3,341 | |||
Income from continuing operations | $ (6,093) | $ 202 | $ 3,095 |
New Valley LLC (Douglas Elliman
New Valley LLC (Douglas Elliman Acquisition) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||||||||
Purchase of subsidiaries | $ 10,404 | $ 6,569 | $ 250 | |||||||||
Contingent consideration liability | $ 6,304 | $ 6,304 | 6,304 | |||||||||
Acquisition of Douglas Elliman non-controlling interest | (45,153) | |||||||||||
Operating income (loss) | 48,086 | $ 66,018 | $ 61,861 | $ 48,084 | $ 48,204 | $ 59,723 | $ 74,300 | $ 53,421 | 224,049 | 235,648 | 234,505 | |
Net income attributed to non-controlling interest | (98) | 6,178 | 6,139 | |||||||||
Significant Unobservable Inputs (Level 3) | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration liability | $ 6,304 | $ 6,304 | 6,304 | |||||||||
Non-controlling Interest | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition of Douglas Elliman non-controlling interest | (73,953) | 78,384 | ||||||||||
Accumulated Deficit | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition of Douglas Elliman non-controlling interest | 28,800 | |||||||||||
Douglas Elliman | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Operating income (loss) | $ 5,197 | 21,358 | 21,068 | |||||||||
Douglas Elliman | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Voting interest acquired | 29.41% | 29.41% | 29.41% | |||||||||
Consideration | $ 40,000 | |||||||||||
Purchase of subsidiaries | 10,000 | |||||||||||
Liabilities incurred | $ 30,000 | |||||||||||
Ownership interest | 100.00% | 100.00% | 100.00% | |||||||||
Previous ownership interest | 70.59% | 70.59% | 70.59% | |||||||||
Net income attributed to non-controlling interest | $ 1,528 | $ 6,281 | $ 6,196 |
New Valley LLC (Investment in R
New Valley LLC (Investment in Real Estate Ventures) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)venture | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2018USD ($) | |
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | $ 141,105 | $ 188,131 | ||
Total contributions | 9,728 | 38,807 | $ 44,107 | |
Distributions from real estate ventures, return on capital | 25,935 | 37,995 | 23,446 | |
Distributions from real estate ventures | 54,233 | 61,718 | 33,204 | |
Equity in earnings (loss) from real estate ventures | 14,446 | 21,395 | 5,200 | |
Impairment of real estate, net | 0 | 526 | 1,203 | |
Condominium and Mixed Use Development | New York City SMSA | New York City SMSA Condominium and Mixed Used Development | ||||
Schedule of Investments [Line Items] | ||||
Impairment of real estate, net | 8,467 | |||
New Valley LLC | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | 141,105 | 188,131 | ||
Total contributions | 9,728 | 38,807 | ||
Total distributions from real estate ventures | 80,168 | 99,713 | ||
Equity in earnings (loss) from real estate ventures | 14,446 | 21,395 | $ 5,200 | |
Total maximum exposure to loss | 173,299 | |||
Interest costs capitalized | $ 8,580 | 6,385 | ||
New Valley LLC | Variable Interest Entity, Primary Beneficiary | ||||
Schedule of Investments [Line Items] | ||||
Number of variable interest entities | venture | 2 | |||
VIE's assets | $ 1,387 | $ 14,548 | ||
New Valley LLC | Monad Terrace | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 18.00% | 18.00% | 24.00% | |
New Valley LLC | New York City SMSA | ||||
Schedule of Investments [Line Items] | ||||
Impairment of investments in real estate ventures | $ 2,862 | |||
New Valley LLC | New York City SMSA | Minimum | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 3.10% | |||
New Valley LLC | New York City SMSA | Maximum | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 49.50% | |||
New Valley LLC | Condominium and Mixed Use Development | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | $ 96,399 | 125,149 | ||
Total contributions | 4,135 | 20,061 | ||
Total distributions from real estate ventures | 39,207 | 89,459 | ||
Equity in earnings (loss) from real estate ventures | (1,986) | 33,515 | $ 5,639 | |
Total maximum exposure to loss | 113,615 | |||
New Valley LLC | Condominium and Mixed Use Development | New York City SMSA | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | 65,007 | 96,386 | ||
Total contributions | 4,135 | 11,465 | ||
Total distributions from real estate ventures | 39,207 | 68,600 | ||
Equity in earnings (loss) from real estate ventures | (923) | 35,578 | 7,432 | |
Total maximum exposure to loss | 69,724 | |||
New Valley LLC | Condominium and Mixed Use Development | New York City SMSA | New York City SMSA Condominium and Mixed Used Development | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | 0 | |||
Equity in earnings (loss) from real estate ventures | (10,400) | (481) | 59 | |
Impairment of investments in real estate ventures | 10,174 | |||
New Valley LLC | Condominium and Mixed Use Development | All other U.S. areas | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | 31,392 | 28,763 | ||
Total contributions | 0 | 8,596 | ||
Total distributions from real estate ventures | 0 | 20,859 | ||
Equity in earnings (loss) from real estate ventures | (1,063) | (2,063) | (1,793) | |
Total maximum exposure to loss | $ 43,891 | |||
New Valley LLC | Condominium and Mixed Use Development | All other U.S. areas | Minimum | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 15.00% | |||
New Valley LLC | Condominium and Mixed Use Development | All other U.S. areas | Maximum | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 48.50% | |||
New Valley LLC | Apartment Buildings | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | $ 0 | 11,167 | ||
Total contributions | 975 | 0 | ||
Total distributions from real estate ventures | 27,991 | 7,498 | ||
Equity in earnings (loss) from real estate ventures | 17,631 | (7,235) | 1,588 | |
New Valley LLC | Apartment Buildings | New York City SMSA | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | $ 0 | 10,910 | ||
Equity method ownership percentage | 45.40% | |||
Total distributions from real estate ventures | $ 27,569 | 0 | ||
Equity in earnings (loss) from real estate ventures | 17,467 | (6,703) | 0 | |
New Valley LLC | Apartment Buildings | All other U.S. areas | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | 0 | 257 | ||
Total distributions from real estate ventures | 422 | 7,498 | ||
Equity in earnings (loss) from real estate ventures | $ 164 | (532) | 1,588 | |
New Valley LLC | Apartment Buildings | All other U.S. areas | Minimum | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 7.60% | |||
New Valley LLC | Apartment Buildings | All other U.S. areas | Maximum | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 16.30% | |||
New Valley LLC | Hotels | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | $ 18,116 | 22,416 | ||
Total contributions | 168 | 3,068 | ||
Total distributions from real estate ventures | 1,762 | 468 | ||
Equity in earnings (loss) from real estate ventures | (2,973) | (5,115) | (1,445) | |
Total maximum exposure to loss | 18,116 | |||
New Valley LLC | Hotels | New York City SMSA | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | 15,782 | 19,616 | ||
Total contributions | 168 | 3,068 | ||
Total distributions from real estate ventures | 1,542 | 0 | ||
Equity in earnings (loss) from real estate ventures | (2,727) | (5,347) | (1,884) | |
Total maximum exposure to loss | 15,782 | |||
New Valley LLC | Hotels | New York City SMSA | One New York SMSA Venture | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | $ 267 | |||
New Valley LLC | Hotels | New York City SMSA | Minimum | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 5.20% | |||
New Valley LLC | Hotels | New York City SMSA | Maximum | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 18.40% | |||
New Valley LLC | Hotels | International | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | $ 2,334 | 2,800 | ||
Equity method ownership percentage | 49.00% | |||
Total distributions from real estate ventures | $ 220 | 468 | ||
Equity in earnings (loss) from real estate ventures | (246) | 232 | 439 | |
Total maximum exposure to loss | 2,334 | |||
New Valley LLC | Commercial | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | 8,920 | 18,079 | ||
Total contributions | 0 | 5,753 | ||
Total distributions from real estate ventures | 10,148 | 625 | ||
Equity in earnings (loss) from real estate ventures | 1,046 | (339) | (1,644) | |
Total maximum exposure to loss | 8,920 | |||
New Valley LLC | Commercial | New York City SMSA | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | $ 1,867 | 2,437 | ||
Equity method ownership percentage | 49.00% | |||
Total distributions from real estate ventures | $ 9 | 111 | ||
Equity in earnings (loss) from real estate ventures | (562) | (742) | (1,644) | |
Total maximum exposure to loss | 1,867 | |||
New Valley LLC | Commercial | All other U.S. areas | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | $ 7,053 | 15,642 | ||
Equity method ownership percentage | 1.60% | |||
Total contributions | $ 0 | 5,753 | ||
Total distributions from real estate ventures | 10,139 | 514 | ||
Equity in earnings (loss) from real estate ventures | 1,608 | 403 | 0 | |
Total maximum exposure to loss | 7,053 | |||
New Valley LLC | Other | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | 17,670 | 11,320 | ||
Total contributions | 4,450 | 9,925 | ||
Total distributions from real estate ventures | 1,060 | 1,663 | ||
Equity in earnings (loss) from real estate ventures | 728 | 569 | 1,062 | |
Total maximum exposure to loss | 32,648 | |||
New Valley LLC | Other | One New York SMSA Venture | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | 1,783 | |||
Total distributions from real estate ventures | 27,569 | |||
Equity in earnings (loss) from real estate ventures | 17,467 | (6,701) | (242) | |
New Valley LLC | Other | Witkoff EB-5 Capital Partners | ||||
Schedule of Investments [Line Items] | ||||
Investments in real estate ventures | $ 790 | |||
Equity method ownership percentage | 49.00% | |||
Total maximum exposure to loss | $ 9,595 | |||
New Valley LLC | Other | Minimum | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 15.00% | |||
New Valley LLC | Other | Maximum | ||||
Schedule of Investments [Line Items] | ||||
Equity method ownership percentage | 50.00% | |||
Douglas Elliman Realty, LLC | ||||
Schedule of Investments [Line Items] | ||||
Proceeds from commissions received | $ 20,118 | $ 10,888 | $ 15,078 |
New Valley LLC (Combined Financ
New Valley LLC (Combined Financial Statements for Unconsolidated Subsidiaries) (Details) - New Valley LLC - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condominium and Mixed Use Development | |||
Income Statement | |||
Revenues | $ 365,890 | $ 176,306 | $ 44,089 |
Costs of goods sold | 71,623 | 93,766 | 54,103 |
Other expenses | 44,211 | 47,590 | 13,782 |
Income from continuing operations | 250,056 | 34,950 | (23,796) |
Balance Sheets | |||
Investment in real estate | 2,541,994 | 3,720,332 | |
Total assets | 2,701,652 | 4,178,725 | |
Total debt | 1,798,296 | 2,806,648 | |
Total liabilities | 2,036,431 | 3,028,789 | |
Non-controlling interest | 150,897 | 472,459 | |
Apartment & Office Buildings | |||
Income Statement | |||
Revenues | 44,366 | 66,588 | 87,225 |
Other expenses | 105,899 | 64,431 | 83,117 |
Income from continuing operations | (61,533) | 2,157 | 4,108 |
Balance Sheets | |||
Investment in real estate | 558,268 | 493,178 | |
Total assets | 574,664 | 507,684 | |
Total debt | 412,447 | 422,055 | |
Total liabilities | 420,164 | 639,809 | |
Non-controlling interest | 115,952 | 58,700 | |
Hotels | |||
Income Statement | |||
Revenues | 171,949 | 75,862 | 81,517 |
Costs of goods sold | 4,522 | 4,035 | 4,262 |
Other expenses | 268,007 | 112,124 | 114,582 |
Income from continuing operations | (100,580) | (40,297) | (37,327) |
Balance Sheets | |||
Investment in real estate | 1,019,133 | 776,577 | |
Total assets | 1,126,598 | 865,070 | |
Total debt | 696,200 | 491,200 | |
Total liabilities | 736,101 | 512,252 | |
Non-controlling interest | 348,451 | 319,322 | |
Commercial | |||
Income Statement | |||
Revenues | 56,773 | 6,636 | 8,410 |
Other expenses | 11,647 | 3,294 | 11,195 |
Income from continuing operations | 45,126 | 3,342 | (2,785) |
Balance Sheets | |||
Investment in real estate | 53,193 | 53,586 | |
Total assets | 70,395 | 75,289 | |
Total debt | 55,625 | 55,625 | |
Total liabilities | 54,645 | 54,524 | |
Other | |||
Income Statement | |||
Revenues | 4,823 | 3,442 | 3,344 |
Other expenses | 6,382 | 5,069 | 1,227 |
Income from continuing operations | (1,559) | (1,627) | 2,117 |
Balance Sheets | |||
Investment in real estate | 710,549 | 824,745 | |
Total assets | 1,152,124 | 894,982 | |
Total debt | 658,592 | 470,000 | |
Total liabilities | 665,463 | 471,964 | |
Non-controlling interest | 392,933 | 356,632 | |
10 Madison Square West | |||
Income Statement | |||
Revenues | 28,539 | 197,157 | 467,755 |
Costs of goods sold | 24,250 | 116,120 | 248,917 |
Other expenses | (4,236) | 11,649 | 28,784 |
Income from continuing operations | 8,525 | 69,388 | 190,054 |
Balance Sheets | |||
Investment in real estate | 2,369 | 7,908 | |
Total assets | 15,071 | 32,929 | |
Total debt | 3,319 | 30,006 | |
Total liabilities | 3,616 | 30,006 | |
Non-controlling interest | 10,091 | 2,575 | |
1 QPS Tower | |||
Income Statement | |||
Revenues | 14,625 | 4,216 | (15) |
Other expenses | 26,357 | 18,508 | 518 |
Income from continuing operations | (11,732) | (14,292) | (533) |
Balance Sheets | |||
Investment in real estate | 215,956 | 217,926 | |
Total assets | 220,350 | 229,825 | |
Total debt | 209,602 | 206,413 | |
Total liabilities | 212,640 | 211,631 | |
Greenwich | |||
Income Statement | |||
Revenues | 28 | (768) | 815 |
Other expenses | 146,286 | 2,696 | 2,727 |
Income from continuing operations | (146,258) | (3,464) | $ (1,912) |
Balance Sheets | |||
Investment in real estate | 403,815 | 374,307 | |
Total assets | 419,518 | 376,684 | |
Total debt | 408,779 | 246,244 | |
Total liabilities | 445,514 | 270,322 | |
Non-controlling interest | $ (19,064) | $ 77,998 |
New Valley LLC (Guarantees and
New Valley LLC (Guarantees and Commitments) (Details) - New Valley LLC - Payment Guarantee $ in Thousands | Dec. 31, 2018USD ($) |
One Project | |
Schedule of Investments [Line Items] | |
Maximum exposure on guarantees | $ 12,500 |
Another Project | |
Schedule of Investments [Line Items] | |
Maximum exposure on guarantees | $ 5,410 |
New Valley LLC (Investments in
New Valley LLC (Investments in Real Estate, net) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Apr. 30, 2009aroomlothole | Mar. 31, 2008a | |
Schedule of Investments [Line Items] | ||||||
Real estate investment, net | $ 26,220 | $ 23,952 | ||||
Impairment of real estate, net | 0 | 526 | $ 1,203 | |||
New Valley LLC | ||||||
Schedule of Investments [Line Items] | ||||||
Real estate investment, net | 26,220 | 23,952 | ||||
New Valley LLC | Escena | ||||||
Schedule of Investments [Line Items] | ||||||
Land and Land Improvements | 8,910 | 8,907 | ||||
Building and building improvements | 1,900 | 1,891 | ||||
Other | 2,162 | 2,111 | ||||
Investments in real estate, gross | 12,972 | 12,909 | ||||
Less accumulated depreciation | (2,802) | (2,424) | ||||
Real estate investment, net | 10,170 | 10,485 | ||||
Area of real estate property | a | 450 | |||||
Number of real estate properties | lot | 667 | |||||
Number of holes in golf course | hole | 18 | |||||
Area of land | a | 7 | |||||
Number of units in real estate property | room | 450 | |||||
Operating losses | 576 | (868) | $ (899) | |||
New Valley LLC | Sagaponack | ||||||
Schedule of Investments [Line Items] | ||||||
Real estate investment, net | $ 16,050 | $ 13,467 | ||||
Payments to acquire real estate | $ 12,502 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 77,568,000 | $ 77,059,000 |
Goodwill impairment | 0 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total goodwill and other intangible assets, net | 266,611,000 | 267,708,000 |
Finite-lived intangible assets, gross | 15,168,000 | 20,443,000 |
Less: accumulated amortization on amortizable intangibles | (13,636,000) | (17,305,000) |
Finite-lived intangible assets, net | 1,532,000 | 3,138,000 |
Unfavorable leases | 4,022,000 | 4,022,000 |
Less: Accumulated amortization on amortizable intangibles | (3,076,000) | (2,706,000) |
Unfavorable leases, net | 946,000 | 1,316,000 |
Amortization expense | 806,000 | 871,000 |
Amortization of unfavorable lease | (369,000) | (502,000) |
Amortization expense, 2019 | 71,000 | |
Amortization expense, 2020 | 37,000 | |
Amortization expense, 2021 | 82,000 | |
Amortization income, 2022 | (30,000) | |
Amortization expense, 2023 | 20,000 | |
Amortization expense, thereafter | 3,000 | |
Intangible asset associated with benefit under the MSA | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite life intangibles | 107,511,000 | 107,511,000 |
Impairment of intangibles | 0 | |
Trademark - Douglas Elliman | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite life intangibles | 80,000,000 | 80,000,000 |
Impairment of intangibles | 0 | |
Favorable leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 13,444,000 | 13,444,000 |
Amortization expense | $ 1,175,000 | 1,373,000 |
Favorable leases | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives | 1 year | |
Favorable leases | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives | 10 years | |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 1,724,000 | $ 6,999,000 |
Other intangibles | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives | 1 year | |
Other intangibles | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives | 5 years | |
Unfavorable leases | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives | 1 year | |
Unfavorable leases | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives | 10 years |
Notes Payable, Long-Term Debt_3
Notes Payable, Long-Term Debt and Other Obligations (Schedule of Components of Debt and Other Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Nov. 02, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2012 |
Debt Instrument [Line Items] | ||||||
Notes payable, long-term debt and other obligations | $ 1,666,445 | $ 1,253,542 | ||||
Less: Debt issuance costs | (23,614) | (25,478) | ||||
Total notes payable, long-term debt and other obligations | 1,642,831 | 1,228,064 | ||||
Less: Current maturities | (256,134) | (33,820) | ||||
Amount due after one year | 1,386,697 | 1,194,244 | ||||
Fair value of derivatives embedded within convertible debt | 24,789 | 76,413 | ||||
Senior Notes | 10.5% Senior Notes due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable, long-term debt and other obligations | $ 850,000 | 850,000 | ||||
Interest rate | 6.125% | |||||
Senior Notes | 10.5% Senior Notes due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 10.50% | |||||
Variable Interest Senior Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized discount | $ 32,824 | 122,940 | $ 179,727 | $ 218,255 | ||
Variable Interest Senior Convertible Debt | 10.5% Senior Notes due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable, long-term debt and other obligations | 325,000 | 0 | ||||
Variable Interest Senior Convertible Debt | 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $29,465 and $53,687 | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable, long-term debt and other obligations | 202,535 | 205,063 | ||||
Premium | 29,465 | 53,687 | ||||
Unamortized discount | 29,465 | 53,687 | 71,247 | 86,136 | ||
Fair value of derivatives embedded within convertible debt | $ 24,789 | 45,249 | ||||
Interest rate | 5.50% | |||||
Variable Interest Senior Convertible Debt | 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $3,359 and $69,253 | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable, long-term debt and other obligations | $ 226,641 | 160,747 | ||||
Premium | 3,359 | 69,253 | ||||
Unamortized discount | 3,359 | 69,253 | $ 108,480 | $ 132,119 | ||
Fair value of derivatives embedded within convertible debt | $ 6,635 | 31,164 | ||||
Interest rate | 7.50% | 7.50% | ||||
Line of Credit | Revolving credit facility | Liggett | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable, long-term debt and other obligations | $ 28,381 | 31,614 | ||||
Line of Credit | Term loan under credit facility | Liggett | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable, long-term debt and other obligations | 2,409 | 2,704 | ||||
Equipment loans | Liggett | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable, long-term debt and other obligations | 1,039 | 2,662 | ||||
Other | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable, long-term debt and other obligations | $ 30,440 | $ 752 |
Notes Payable, Long-Term Debt_4
Notes Payable, Long-Term Debt and Other Obligations (Notes Payable Narrative) (Details) | Jan. 15, 2019USD ($) | Nov. 02, 2018USD ($) | Jan. 27, 2017USD ($)shares | May 09, 2016USD ($) | Apr. 15, 2014USD ($) | Mar. 24, 2014USD ($) | Dec. 31, 2018USD ($)series | Feb. 28, 2013USD ($) | Nov. 30, 2012USD ($) | Dec. 31, 2018USD ($)series | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ 4,066,000 | $ 34,110,000 | $ 0 | |||||||||
Shares issued (in shares) | shares | 2,205,000 | |||||||||||
Senior Notes | 7.75% Senior Secured Notes Due 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 7.75% | 7.75% | ||||||||||
Principal amount | $ 235,000,000 | $ 150,000,000 | $ 450,000,000 | |||||||||
Net proceeds from issuance of debt | $ 236,900,000 | $ 158,670,000 | $ 438,250,000 | |||||||||
Redemption price | 103.50% | 106.75% | ||||||||||
Repurchased face amount | $ 835,000,000 | |||||||||||
Senior Notes | 10.5% Senior Notes due 2026 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 6.125% | 6.125% | ||||||||||
Principal amount | 850,000,000 | |||||||||||
Net proceeds from issuance of debt | $ 831,100,000 | |||||||||||
Redemption price | 101.00% | |||||||||||
Indenture threshold for earnings for payment of dividends (less than) | $ 75,000,000 | $ 75,000,000 | ||||||||||
Leverage ratio requirement | 3 | |||||||||||
Secured leverage ratio requirement | 1.5 | |||||||||||
Senior Notes | 10.5% Senior Notes due 2026 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 10.50% | |||||||||||
Minimum percentage of principal amount to remain outstanding | 60.00% | |||||||||||
Percent of net proceeds of certain equity offerings | 110.50% | |||||||||||
Redemption price max of principal amount | 40.00% | |||||||||||
Redemption interest rate | 1.00% | |||||||||||
Principal amount | $ 325,000,000 | |||||||||||
Net proceeds from issuance of debt | $ 315,000,000 | |||||||||||
Redemption price | 101.00% | |||||||||||
Variable Interest Senior Convertible Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of series outstanding | series | 2 | 2 | ||||||||||
Variable Interest Senior Convertible Debt | 7.5% Variable Interest Senior Convertible Notes due 2019 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 7.50% | 7.50% | 7.50% | |||||||||
Net proceeds from issuance of debt | $ 218,900,000 | |||||||||||
Partial interest rate of convertible debt | 2.50% | |||||||||||
Variable Interest Senior Convertible Debt | 5.5% Variable Interest Senior Convertible Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.50% | 5.50% | ||||||||||
Principal amount | $ 258,750,000 | |||||||||||
Net proceeds from issuance of debt | $ 250,300,000 | |||||||||||
Payments for convertible debt | $ 27,141,000 | |||||||||||
Loss on extinguishment of debt | $ (4,066,000) | |||||||||||
Redemption price | 101.15% | |||||||||||
Repurchased face amount | $ 26,750,000 | $ 26,750,000 | ||||||||||
Redemption prince in event of change as defined in indenture | 100.00% | |||||||||||
Partial interest rate of convertible debt | 1.75% | |||||||||||
Subsequent Event [Member] | Variable Interest Senior Convertible Debt | 7.5% Variable Interest Senior Convertible Notes due 2019 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount | $ 230,000,000 | |||||||||||
Interest expense | $ 8,102,000 | |||||||||||
Douglas Elliman Realty, LLC | Senior Notes | 10.5% Senior Notes due 2026 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Equity method ownership percentage | 100.00% |
Notes Payable, Long-Term Debt_5
Notes Payable, Long-Term Debt and Other Obligations (Share Lending Agreement) (Details) - Jefferies & Company [Member] - Share Lending Agreement [Member] - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Shares outstanding (in shares) | 8,193,346 | 0 | |
Lending fee (in dollars per share) | $ 0.10 | ||
Fair value | $ 3,204 | ||
Shares returned (in shares) | 4,096,674 | 1,741,817 | 2,354,855 |
Amortized amount into interest expense | $ 1,300 | ||
Unamortized amount of issuance costs | $ 66 | $ 1,366 |
Notes Payable, Long-Term Debt_6
Notes Payable, Long-Term Debt and Other Obligations (Conversion Rates on Convertible Debt) (Details) - Variable Interest Senior Convertible Debt | 12 Months Ended | |
Dec. 31, 2018$ / shares | Dec. 31, 2017$ / shares | |
7.5% Variable Interest Senior Convertible Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Conversion price (in dollars per share) | $ 13.80 | $ 13.80 |
Conversion ratio | 0.0724376 | 0.0724376 |
5.5% Variable Interest Senior Convertible Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Conversion price (in dollars per share) | $ 21.28 | $ 21.28 |
Conversion ratio | 0.0469869 | 0.0469869 |
Notes Payable, Long-Term Debt_7
Notes Payable, Long-Term Debt and Other Obligations (Other Schedules) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Interest expense associated with embedded derivatives | $ 55,769 | $ 37,210 | $ 25,732 |
Fair Value Of Derivatives [Roll Forward] | |||
Loss (gain) from changes in fair value of embedded derivatives | (44,989) | (35,919) | (31,710) |
Unamortized Debt Discount Reconciliation [Roll Forward] | |||
Amortization of beneficial conversion feature | (30,854) | (19,577) | (12,796) |
Variable Interest Senior Convertible Debt | |||
Unamortized Debt Discount Reconciliation [Roll Forward] | |||
Beginning balance of unamortized discount | 122,940 | 179,727 | 218,255 |
Amortization of embedded derivatives | (55,769) | (37,210) | (25,732) |
Amortization of beneficial conversion feature | (30,854) | (19,577) | (12,796) |
Ending balance of unamortized discount | 32,824 | 122,940 | 179,727 |
Variable Interest Senior Convertible Debt | Embedded Derivatives | |||
Fair Value Of Derivatives [Roll Forward] | |||
Beginning balance of derivative liability fair value | 76,413 | 112,332 | 144,042 |
Loss (gain) from changes in fair value of embedded derivatives | (44,989) | (35,919) | (31,710) |
Beginning balance of derivative liability fair value | 31,424 | 76,413 | 112,332 |
Variable Interest Senior Convertible Debt | 7.5% Variable Interest Senior Convertible Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Interest expense associated with embedded derivatives | 39,845 | 23,720 | 14,294 |
Fair Value Of Derivatives [Roll Forward] | |||
Loss (gain) from changes in fair value of embedded derivatives | (24,530) | (21,734) | (19,184) |
Unamortized Debt Discount Reconciliation [Roll Forward] | |||
Beginning balance of unamortized discount | 69,253 | 108,480 | 132,119 |
Amortization of embedded derivatives | (39,845) | (23,720) | (14,294) |
Amortization of beneficial conversion feature | (26,049) | (15,507) | (9,345) |
Ending balance of unamortized discount | 3,359 | 69,253 | 108,480 |
Variable Interest Senior Convertible Debt | 7.5% Variable Interest Senior Convertible Notes due 2019 | Embedded Derivatives | |||
Fair Value Of Derivatives [Roll Forward] | |||
Beginning balance of derivative liability fair value | 31,165 | 52,899 | 72,083 |
Loss (gain) from changes in fair value of embedded derivatives | (24,530) | (21,734) | (19,184) |
Beginning balance of derivative liability fair value | 6,635 | 31,165 | 52,899 |
Variable Interest Senior Convertible Debt | 5.5% Variable Interest Senior Convertible Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Interest expense associated with embedded derivatives | 15,924 | 13,490 | 11,438 |
Fair Value Of Derivatives [Roll Forward] | |||
Loss (gain) from changes in fair value of embedded derivatives | (20,459) | (14,185) | (12,526) |
Unamortized Debt Discount Reconciliation [Roll Forward] | |||
Beginning balance of unamortized discount | 53,687 | 71,247 | 86,136 |
Amortization of embedded derivatives | (15,924) | (13,490) | (11,438) |
Amortization of beneficial conversion feature | (4,805) | (4,070) | (3,451) |
Ending balance of unamortized discount | 29,465 | 53,687 | 71,247 |
Variable Interest Senior Convertible Debt | 5.5% Variable Interest Senior Convertible Notes due 2020 | Interest Rate Risk | |||
Unamortized Debt Discount Reconciliation [Roll Forward] | |||
Partial redemption of 5.5% convertible notes | (3,493) | ||
Variable Interest Senior Convertible Debt | 5.5% Variable Interest Senior Convertible Notes due 2020 | Embedded Derivatives | |||
Fair Value Of Derivatives [Roll Forward] | |||
Beginning balance of derivative liability fair value | 45,248 | 59,433 | 71,959 |
Loss (gain) from changes in fair value of embedded derivatives | (20,459) | (14,185) | (12,526) |
Beginning balance of derivative liability fair value | $ 24,789 | $ 45,248 | $ 59,433 |
Notes Payable, Long-Term Debt_8
Notes Payable, Long-Term Debt and Other Obligations (Other Narrative) (Details) - USD ($) | Dec. 31, 2018 | Jan. 14, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||
Purchase of subsidiaries | $ 10,404,000 | $ 6,569,000 | $ 250,000 | ||
Liggett | |||||
Debt Instrument [Line Items] | |||||
Line of Credit, covenant term restriction prior to payment of dividend | 30 days | ||||
Required minimum borrowing availability 30 days prior to payment of dividend | $ 5,000,000 | $ 5,000,000 | |||
Line of Credit | Liggett | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 60,000,000 | ||||
Borrowing base, inventory | 80.00% | ||||
Borrowing base, inventory cost multiplier | 60.00% | ||||
Minimum ebitda ratio on trailing 12-moth basis if excess availability is less than $20,000 | $ 100,000,000 | ||||
Covenant, excess availability in credit facility threshold | 20,000,000 | ||||
Covenant, capital expenditure requirement, maximum carryover amount | 10,000,000 | ||||
Maximum capital expenditures allowed before maximum carryover amount of $10,000 | $ 20,000,000 | ||||
Amount outstanding | 30,790,000 | 30,790,000 | |||
Remaining borrowing capacity | $ 20,920,000 | $ 20,920,000 | |||
Interest rate at end of period | 4.77% | 4.77% | 3.82% | ||
Line of Credit | Liggett | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
Medium-term Notes | Liggett | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 3,600,000 | ||||
Periodic monthly payments | $ 25,000 | ||||
Periodic balloon payment to be paid | $ 2,000,000 | $ 2,000,000 | |||
Douglas Elliman | |||||
Debt Instrument [Line Items] | |||||
Liabilities incurred | $ 30,000,000 | ||||
Voting interest acquired | 29.41% | 29.41% | |||
Consideration | $ 40,000,000 | ||||
Purchase of subsidiaries | $ 10,000,000 |
Notes Payable, Long-Term Debt_9
Notes Payable, Long-Term Debt and Other Obligations (Fair Value of Notes Payable and Long Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 1,565,459 | $ 1,579,616 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 1,666,445 | 1,253,542 |
Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 1,034,500 | 879,750 |
Senior Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 1,175,000 | 850,000 |
Variable Interest Senior Convertible Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 468,704 | 662,169 |
Variable Interest Senior Convertible Debt | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 429,176 | 365,810 |
Liggett and other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 62,255 | 37,697 |
Liggett and other | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 62,269 | $ 37,732 |
Notes Payable, Long-Term Deb_10
Notes Payable, Long-Term Debt and Other Obligations (Schedule of Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2019 Principal | $ 259,791 | |
2019 Unamortized Discount | 3,359 | |
2019 Net | 256,432 | |
2020 Principal | 244,478 | |
2020 Unamortized Discount | 29,465 | |
2020 Net | 215,013 | |
2021 Principal | 10,000 | |
2021 Unamortized Discount | 0 | |
2021 Net | 10,000 | |
2022 Principal | 10,000 | |
2022 Unamortized Discount | 0 | |
2022 Net | 10,000 | |
2023 Principal | 0 | |
2023 Unamortized Discount | 0 | |
2023 Net | 0 | |
Thereafter Principal | 1,175,000 | |
Thereafter Unamortized Discount | 0 | |
Thereafter Net | 1,175,000 | |
Notes payable, long-term debt and other obligations | 1,699,269 | |
Unamortized Discount/ (Premium) | 32,824 | |
Total notes payable, long-term debt and other obligations | $ 1,666,445 | $ 1,253,542 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease term (more than one year) | 1 year | ||
Lease commitments, 2019 | $ 35,973 | ||
Lease commitments, 2020 | 29,917 | ||
Lease commitments, 2021 | 27,592 | ||
Lease commitments, 2022 | 25,185 | ||
Lease commitments, 2023 | 23,589 | ||
Lease commitments, Thereafter | 104,126 | ||
Lease commitments, Total | 246,382 | ||
Sublease Rentals, 2019 | 69 | ||
Sublease Rentals, 2020 | 0 | ||
Sublease Rentals, 2021 | 0 | ||
Sublease Rentals, 2022 | 0 | ||
Sublease Rentals, 2023 | 0 | ||
Sublease Rentals, Thereafter | 0 | ||
Sublease Rentals, Total | 69 | ||
Net, 2019 | 35,904 | ||
Net, 2020 | 29,917 | ||
Net, 2021 | 27,592 | ||
Net, 2022 | 25,185 | ||
Net, 2023 | 23,589 | ||
Net, Thereafter | 104,126 | ||
Net, Total | 246,313 | ||
Rental expense | $ 38,893 | $ 34,858 | $ 27,237 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)employeeplan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit plans | plan | 4 | ||
Accumulated benefit obligations in excess of aggregate projected benefit obligation | $ 53,865,000 | $ 54,227,000 | |
Accumulated benefit obligations in excess of aggregate accumulated benefit obligation | 53,865,000 | 54,227,000 | |
Accumulated benefit obligations in excess of aggregate fair value of plan assets | 0 | 0 | |
401 (k) plan cost recognized | $ 1,793,000 | $ 1,736,000 | $ 1,564,000 |
Hourly Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Period for amortization of benefit plan gains and losses | 13 years 8 months 1 day | ||
Salaried Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Period for amortization of benefit plan gains and losses | 13 years 3 months 3 days | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit plans | plan | 3 | ||
Ten-year rate of return | 8.30% | 5.20% | 5.20% |
Five-year rate of return | 3.19% | 7.28% | 7.60% |
Pension Benefits | Qualified Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit plans | plan | 2 | ||
Pension Benefits | Nonqualified Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit plans | plan | 1 | ||
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Age requirement for participant | 60 years | ||
Required employment period | 8 years | ||
Supplemental Employee Retirement Plan [Member] | President and Chief Executive Officer | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Additional benefit | $ 736,000 | ||
Service period credit upon termination | 36 months | ||
Postretirement Life Insurance [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of retired employees | employee | 401 | ||
Number of active employees | employee | 105 | ||
Postretirement Medical [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of retired employees | employee | 138 | ||
Employee contribution percentage | 100.00% |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Defined Benefit Plan Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts recognized in the consolidated balance sheets: | |||
Non-current employee benefit liabilities | $ (61,288) | $ (62,242) | |
Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at January 1 | (132,722) | (132,721) | |
Service cost | (587) | (564) | $ (547) |
Interest cost | (4,495) | (5,059) | (5,419) |
Plan amendment | 0 | 0 | |
Benefits paid | 8,524 | 9,012 | |
Expenses paid | 260 | 297 | |
Actuarial gain | 5,855 | (3,687) | |
Benefit obligation at December 31 | (123,165) | (132,722) | (132,721) |
Change in plan assets: | |||
Balance as of January 1 | 106,192 | 103,781 | |
Actual return on plan assets | (4,497) | 11,373 | |
Expenses paid | (260) | (297) | |
Contributions | 256 | 347 | |
Benefits paid | (8,524) | (9,012) | |
Balance as of December 31 | 93,167 | 106,192 | 103,781 |
Unfunded status at December 31 | (29,998) | (26,530) | |
Amounts recognized in the consolidated balance sheets: | |||
Prepaid pension costs | 23,869 | 27,697 | |
Other accrued liabilities | (228) | (313) | |
Non-current employee benefit liabilities | (53,639) | (53,914) | |
Net amounts recognized | (29,998) | (26,530) | |
Other Postretirement Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at January 1 | (8,967) | (8,682) | |
Service cost | (4) | (5) | (5) |
Interest cost | (330) | (368) | (385) |
Plan amendment | (39) | 0 | |
Benefits paid | 553 | 582 | |
Expenses paid | 0 | 0 | |
Actuarial gain | 491 | (494) | |
Benefit obligation at December 31 | (8,296) | (8,967) | (8,682) |
Change in plan assets: | |||
Balance as of January 1 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Expenses paid | 0 | 0 | |
Contributions | 553 | 582 | |
Benefits paid | (553) | (582) | |
Balance as of December 31 | 0 | 0 | $ 0 |
Unfunded status at December 31 | (8,296) | (8,967) | |
Amounts recognized in the consolidated balance sheets: | |||
Prepaid pension costs | 0 | 0 | |
Other accrued liabilities | (647) | (639) | |
Non-current employee benefit liabilities | (7,649) | (8,328) | |
Net amounts recognized | $ (8,296) | $ (8,967) |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost — benefits earned during the period | $ 587 | $ 564 | $ 547 |
Interest cost on projected benefit obligation | 4,495 | 5,059 | 5,419 |
Expected return on assets | (5,572) | (5,424) | (6,076) |
Prior service cost | 0 | 0 | 0 |
Amortization of net loss (gain) | 1,804 | 2,009 | 1,855 |
Net expense | 1,314 | 2,208 | 1,745 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost — benefits earned during the period | 4 | 5 | 5 |
Interest cost on projected benefit obligation | 330 | 368 | 385 |
Expected return on assets | 0 | 0 | 0 |
Prior service cost | 4 | 0 | 0 |
Amortization of net loss (gain) | (41) | (54) | (75) |
Net expense | $ 297 | $ 319 | $ 315 |
Employee Benefit Plans (Accumul
Employee Benefit Plans (Accumulated Other Comprehensive Income Next Fixal Year) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year [Abstract] | |
Prior service cost | $ 4 |
Actuarial loss (gain) | 1,961 |
Pension Benefits | |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year [Abstract] | |
Prior service cost | 0 |
Actuarial loss (gain) | 2,001 |
Other Postretirement Benefits | |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year [Abstract] | |
Prior service cost | 4 |
Actuarial loss (gain) | $ (40) |
Employee Benefit Plans (Amounts
Employee Benefit Plans (Amounts Recognized Accumlated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), before Income Taxes [Roll Forward] | |||
Accumulated other comprehensive income (loss) | $ (31,880) | $ (35,603) | |
Amortization of loss (gain) | 1,763 | 1,955 | |
Net (loss) gain arising during the year | (3,723) | 1,768 | $ (3,064) |
Accumulated other comprehensive income (loss) | (33,876) | (31,880) | (35,603) |
Pension Benefits | |||
Accumulated Other Comprehensive Income (Loss), before Income Taxes [Roll Forward] | |||
Accumulated other comprehensive income (loss) | (31,643) | (35,914) | |
Amortization of loss (gain) | 1,804 | 2,009 | |
Net (loss) gain arising during the year | (4,214) | 2,262 | |
Accumulated other comprehensive income (loss) | (34,053) | (31,643) | (35,914) |
Other Postretirement Benefits | |||
Accumulated Other Comprehensive Income (Loss), before Income Taxes [Roll Forward] | |||
Accumulated other comprehensive income (loss) | (237) | 311 | |
Amortization of loss (gain) | (41) | (54) | |
Net (loss) gain arising during the year | 491 | (494) | |
Accumulated other comprehensive income (loss) | $ 177 | $ (237) | $ 311 |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Benefit Plan Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed rates of return on invested assets | 5.50% | 5.50% | 6.00% |
Pension Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates — benefit obligation | 3.90% | 3.25% | 3.60% |
Discount rates — service cost | 3.25% | 3.60% | 3.75% |
Pension Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates — benefit obligation | 4.25% | 3.70% | 4.20% |
Discount rates — service cost | 3.70% | 4.20% | 4.50% |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates — benefit obligation | 4.35% | 3.80% | 4.40% |
Discount rates — service cost | 3.80% | 4.40% | 4.75% |
Salary increase assumptions | 3.00% | 3.00% | 3.00% |
Employee Benefit Plans (Plan As
Employee Benefit Plans (Plan Asset Allocation) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||
Target allocation, rebalancing range | 5.00% | |
Actual allocation | 100.00% | 100.00% |
U.S. equity securities | ||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||
Target allocation | 55.00% | |
Actual allocation | 52.00% | 56.00% |
Investment grade fixed income securities | ||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||
Target allocation | 35.00% | |
Actual allocation | 39.00% | 35.00% |
High yield fixed income securities | ||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||
Target allocation | 10.00% | |
Actual allocation | 9.00% | 9.00% |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Plan Assets Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 127 | $ 1,990 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 93,167 | 106,192 | $ 103,781 |
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 175 | 2,322 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 59,261 | 47,337 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 127 | |
Pension Benefits | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,161 | 2,245 | |
Pension Benefits | Insurance contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Insurance contracts | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,161 | 2,245 | |
Pension Benefits | Insurance contracts | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Cash, mutual funds and common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 175 | 173 | |
Pension Benefits | Cash, mutual funds and common stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 175 | 173 | |
Pension Benefits | Cash, mutual funds and common stock | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Cash, mutual funds and common stock | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2,149 | |
Pension Benefits | U.S. equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2,149 | |
Pension Benefits | U.S. equity securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | U.S. equity securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 48,126 | 35,064 | |
Pension Benefits | Common collective trusts | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pension Benefits | Common collective trusts | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 48,126 | 35,064 | |
Pension Benefits | Common collective trusts | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Common collective trusts at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33,731 | 56,406 | |
Pension Benefits | Common collective trusts at NAV | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pension Benefits | Common collective trusts at NAV | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Common collective trusts at NAV | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,974 | ||
Pension Benefits | Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pension Benefits | Mutual Funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,974 | ||
Pension Benefits | Mutual Funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | ||
Pension Benefits | Investment Partnership | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10,155 | ||
Pension Benefits | Investment Partnership | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pension Benefits | Investment Partnership | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10,028 | ||
Pension Benefits | Investment Partnership | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 127 |
Employee Benefit Plans (Pensi_2
Employee Benefit Plans (Pension Plan Assets Fair Value Measurement Reconciliation of Unobservable Inputs) (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Balance as of January 1 | $ 127 | $ 1,990 |
Distributions | (127) | (1,962) |
Unrealized gain on long-term investments | 0 | 15 |
Realized gain on long-term investments | 0 | 84 |
Balance as of December 31 | $ 0 | $ 127 |
Employee Benefit Plans (Assumed
Employee Benefit Plans (Assumed Health Care Cost Trend Rates) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed annual increases in Medicare Part B trends after eight years | 4.50% | 4.50% |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | ||
Effect on total of service and interest cost components, 1% Increase | $ 2 | |
Effect on total of service and interest cost components, 1% Decrease | (2) | |
Effect on benefit obligation, 1% Increase | 54 | |
Effect on benefit obligation, 1% Decrease | $ (51) | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed annual increases in Medicare Part B trends for next eight years | 4.04% | 3.73% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed annual increases in Medicare Part B trends for next eight years | 6.13% | 7.28% |
Employee Benefit Plans (Future
Employee Benefit Plans (Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Supplemental Employee Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 0 |
2,020 | 7,111 |
2,021 | 0 |
2,022 | 0 |
2,023 | 0 |
2024 - 2028 | 57,097 |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 8,077 |
2,020 | 14,692 |
2,021 | 7,111 |
2,022 | 6,671 |
2,023 | 6,265 |
2024 - 2028 | 82,618 |
Postretirement Medical [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 647 |
2,020 | 632 |
2,021 | 631 |
2,022 | 630 |
2,023 | 628 |
2024 - 2028 | $ 2,944 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||||
Various U.S. state tax loss carryforwards | $ 6,556 | $ 5,137 | ||
Ownership percentage of subsidiaries included in tax return (more than 80%) | 80.00% | |||
Valuation allowance | 3,664 | $ 3,817 | ||
Provisional amount for tax act | 2,691 | |||
Unrecognized tax benefits | $ 628 | 391 | $ 515 | $ 1,523 |
Reasonably possible amount recognized over next 12 months | $ 119 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
U.S. Federal | $ 27,962 | $ 28,271 | $ 29,185 |
State | 11,225 | 3,458 | 7,407 |
Current Total | 39,187 | 31,729 | 36,592 |
Deferred: | |||
U.S. Federal | (12,524) | (31,049) | 10,076 |
State | (5,111) | (2,262) | 2,495 |
Deferred Total | (17,635) | (33,311) | 12,571 |
Income tax expense (benefit) | $ 21,552 | $ (1,582) | $ 49,163 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Employee benefit accruals | $ 12,801 | $ 11,621 |
Impairment of investments | 4,131 | 1,834 |
Impact of timing of settlement payments | 20,551 | 14,367 |
Disallowed interest expense carryforward | 1,619 | 0 |
Various U.S. state tax loss carryforwards | 5,137 | 6,556 |
Other | 1,966 | 1,110 |
Deferred tax assets | 46,205 | 35,488 |
Less: Valuation allowance | (3,817) | (3,664) |
Net deferred tax assets | 42,388 | 31,824 |
Deferred tax liabilities: | ||
Basis differences on non-consolidated entities | (7,752) | (5,388) |
Basis differences on fixed and intangible assets | (35,854) | (36,712) |
Capitalized interest expense | (6,532) | (6,069) |
Basis differences on inventory | (11,497) | (11,357) |
Basis differences on long-term investments | (16,496) | (15,521) |
Impact of accounting for convertible debt | (385) | (12,776) |
Basis differences on available for sale securities | (1,283) | (2,802) |
Deferred tax liabilities | (79,799) | (90,625) |
Net deferred tax liabilities | $ (37,411) | $ (58,801) |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income before provision for income taxes | $ 79,559 | $ 89,168 | $ 126,429 |
Federal income tax expense at statutory rate | 16,707 | 31,209 | 44,250 |
Increases (decreases) resulting from: | |||
State income taxes, net of federal income tax benefits | 6,060 | 3,833 | 6,991 |
Impact of non-controlling interest | 21 | (2,162) | (2,148) |
Non-deductible expenses | 1,993 | 2,146 | 2,569 |
Impact of domestic production deduction | 359 | (2,960) | (2,603) |
Impact of Tax Cuts and Jobs Act of 2017 | (2,691) | (28,845) | 0 |
Excess tax benefits on stock-based compensation | (778) | (1,143) | 0 |
Tax credits | (127) | (2,683) | (359) |
Other | (545) | (155) | (1,202) |
Inclusion of tax liabilities from unincorporated entities | 400 | (47) | 1,126 |
Changes in valuation allowance, net of equity and tax audit adjustments | 153 | (775) | 539 |
Income tax expense (benefit) | $ 21,552 | $ (1,582) | $ 49,163 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance | $ 628 | $ 515 | $ 1,523 |
Additions based on tax positions related to prior years | 26 | 208 | 72 |
Settlements | (100) | 0 | (119) |
Expirations of the statute of limitations | (163) | (95) | (961) |
Balance | $ 391 | $ 628 | $ 515 |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) | May 16, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost not yet recognized | $ 3,537,000 | |||
Granted (in shares) | 406,875 | 427,219 | 448,580 | |
Exercise price of options (in dollars per share) | $ 19.34 | $ 20.69 | $ 20.08 | |
Option exercises in period, intrinsic value | $ 0 | $ 309,000 | ||
Tax benefit of options exercised | 579,000 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 2,246,000 | $ 2,207,000 | 2,203,000 | |
Contractual term | 10 years | |||
Total compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | |||
Tax benefit of options exercised | $ 116,000 | |||
Stock Options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
Stock Options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 7 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost not yet recognized, period for recognition | 1 year 8 months 19 days | |||
2014 Management Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual short-term cash incentives performance period | 12 months | |||
Shares available for issuance | 7,758,012 |
Stock Compensation (Fair Value
Stock Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 2.70% | 2.10% | 1.50% |
Risk-free interest rate, Maximum | 2.90% | 2.40% | 1.70% |
Expected volatility, Minimum | 19.02% | 18.88% | 16.49% |
Expected volatility, Maximum | 21.05% | 21.62% | 18.13% |
Dividend yield | 0.00% | 0.00% | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected holding period | 5 years | 6 years | 7 years |
Weighted-average grant date fair value | $ 4.62 | $ 5.39 | $ 5.09 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected holding period | 10 years | 10 years | 10 years |
Weighted-average grant date fair value | $ 7.58 | $ 8.17 | $ 6.88 |
Stock Compensation (Stock Optio
Stock Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding (in shares) | 5,174,882 | 4,747,675 | 4,336,036 | |
Granted (in shares) | 406,875 | 427,219 | 448,580 | |
Exercised (in shares) | 0 | 0 | (36,935) | |
Canceled (in shares) | (11) | (12) | (6) | |
Outstanding (in shares) | 5,581,746 | 5,174,882 | 4,747,675 | 4,336,036 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 13.38 | $ 12.71 | $ 11.93 | |
Granted, Weighted Average Exercise Price (in dollars per share) | 19.34 | 20.69 | 20.08 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 0 | 0 | 10.76 | |
Cancelled, Weighted Average Exercise Price (in dollars per share) | $ 0 | 0 | 0 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 13.38 | $ 12.71 | $ 11.93 | |
Outstanding, Weighted Average Remaining Contractual Term | 4 years 8 months 12 days | 5 years 3 months 18 days | 5 years 10 months 24 days | |
Outstanding, Aggregate Intrinsic Value | $ 1,095 | $ 41,069 | $ 37,557 | $ 36,612 |
Options exercisable (in shares) | 3,828,073 | 3,333,525 | 2,328,463 | |
Common stock fair value | $ 9.73 | $ 21.31 | $ 20.63 |
Stock Compensation (Shares Auth
Stock Compensation (Shares Authorized under Stock Option Plans by Exercise Price Range) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | shares | 5,581,746 |
Outstanding, Weighted Average Remaining Contractual Life | 4 years 1 month 6 days |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 13.82 |
Options Exercisable (in shares) | shares | 3,828,073 |
Options Exercisable, Weighted Average Remaining Contractual Life | 2 years 6 months |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.09 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 1,095 |
Exercise Price Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 8.28 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 10.35 |
Options Outstanding (in shares) | shares | 1,737,478 |
Outstanding, Weighted Average Remaining Contractual Life | 10 months 24 days |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9.10 |
Options Exercisable (in shares) | shares | 1,737,478 |
Options Exercisable, Weighted Average Remaining Contractual Life | 10 months 24 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9.10 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Exercise Price Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 10.35 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 12.41 |
Options Outstanding (in shares) | shares | 1,596,042 |
Outstanding, Weighted Average Remaining Contractual Life | 3 years 4 months 24 days |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.91 |
Options Exercisable (in shares) | shares | 1,596,042 |
Options Exercisable, Weighted Average Remaining Contractual Life | 3 years 4 months 24 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.91 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Exercise Price Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 12.41 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 14.48 |
Options Outstanding (in shares) | shares | 0 |
Outstanding, Weighted Average Remaining Contractual Life | 0 years |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Options Exercisable (in shares) | shares | 0 |
Options Exercisable, Weighted Average Remaining Contractual Life | 0 years |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Exercise Price Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 14.48 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 16.55 |
Options Outstanding (in shares) | shares | 494,553 |
Outstanding, Weighted Average Remaining Contractual Life | 5 years 4 months 24 days |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.41 |
Options Exercisable (in shares) | shares | 494,553 |
Options Exercisable, Weighted Average Remaining Contractual Life | 5 years 4 months 24 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15.41 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Exercise Price Range Five [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 16.55 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 18.62 |
Options Outstanding (in shares) | shares | 0 |
Outstanding, Weighted Average Remaining Contractual Life | 0 years |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Options Exercisable (in shares) | shares | 0 |
Options Exercisable, Weighted Average Remaining Contractual Life | 0 years |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Exercise Price Range Six [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 18.62 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 20.69 |
Options Outstanding (in shares) | shares | 1,753,673 |
Outstanding, Weighted Average Remaining Contractual Life | 7 years 7 months 6 days |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 19.77 |
Options Exercisable (in shares) | shares | 0 |
Options Exercisable, Weighted Average Remaining Contractual Life | 0 years |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Stock Compensation (Restricted
Stock Compensation (Restricted Stock Activity) (Details) - Restricted Stock $ in Thousands | May 29, 2018USD ($)directorshares | Apr. 01, 2016directorshares | Nov. 10, 2015USD ($)shares | Oct. 10, 2015 | Jul. 23, 2014USD ($)shares | Oct. 31, 2013USD ($)shares | May 31, 2013USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Apr. 30, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total compensation cost not yet recognized | $ 22,077 | $ 29,174 | |||||||||
Total compensation cost not yet recognized, period for recognition | 1 year 8 months 19 days | ||||||||||
April 2,016 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 57,881 | ||||||||||
Share-based compensation expense | $ 374 | 351 | $ 236 | ||||||||
Number of directors | director | 5 | ||||||||||
Award vesting period | 3 years | ||||||||||
Total compensation cost not yet recognized | $ 1,054 | ||||||||||
May 29, 2018 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 26,250 | ||||||||||
Share-based compensation expense | 142 | ||||||||||
Award vesting period | 2 years | ||||||||||
Total compensation cost not yet recognized | $ 481 | ||||||||||
November 10, 2015 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 1,389,150 | ||||||||||
Performance period | 7 years | ||||||||||
Share-based compensation expense | 4,053 | 5,275 | 4,278 | ||||||||
Total compensation cost not yet recognized | $ 28,374 | ||||||||||
July 23, 2014 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 1,276,282 | ||||||||||
Performance period | 7 years | ||||||||||
Share-based compensation expense | 2,969 | 2,969 | 3,122 | ||||||||
Total compensation cost not yet recognized | $ 20,780 | ||||||||||
May 2,013 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 57,881 | ||||||||||
Share-based compensation expense | 111 | ||||||||||
Total compensation cost not yet recognized | $ 815 | ||||||||||
October 2,013 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 35,098 | ||||||||||
Share-based compensation expense | 85 | $ 85 | $ 85 | ||||||||
Total compensation cost not yet recognized | $ 458 | ||||||||||
Directors | May 29, 2018 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 6,998 | ||||||||||
Share-based compensation expense | $ 82 | ||||||||||
Number of directors | director | 2 | ||||||||||
Total compensation cost not yet recognized | $ 128 |
Contingencies (Overview and Bon
Contingencies (Overview and Bonds) (Details) $ in Thousands | Nov. 21, 1996USD ($) | Sep. 30, 2017USD ($)case | Jun. 30, 2017USD ($)case | Dec. 31, 2016USD ($)case | Oct. 31, 2013USD ($)case | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2009USD ($) |
Loss Contingencies [Line Items] | |||||||||
Amount of litigation settlement awarded to other party | $ 145,000,000 | ||||||||
Liggett | |||||||||
Loss Contingencies [Line Items] | |||||||||
Tobacco product liability legal expenses and costs | $ 7,144 | $ 12,809 | $ 26,611 | ||||||
Amount of litigation settlement awarded to other party | $ 790,000 | ||||||||
Liggett | Engle Progeny Cases | |||||||||
Loss Contingencies [Line Items] | |||||||||
Amount of litigation settlement awarded to other party | $ 4,100 | $ 1,400 | $ 17,650 | $ 110,000 | |||||
Cases settled | case | 20 | 9 | 124 | 4,900 | |||||
Liggett | Engle Progeny Cases | Florida | |||||||||
Loss Contingencies [Line Items] | |||||||||
Maximum bond required | $ 200,000 | ||||||||
Liggett | Bonds | Santoro v. R.J. Reynolds | |||||||||
Loss Contingencies [Line Items] | |||||||||
Security posted for appeal of judgment | $ 535 |
Contingencies (Engle Progeny Ca
Contingencies (Engle Progeny Cases and Cautionary Statement About Engle Progeny Cases) (Details) $ in Thousands | Nov. 21, 1996USD ($) | Sep. 30, 2017USD ($)case | Jun. 30, 2017USD ($)case | Dec. 31, 2016USD ($)case | Oct. 31, 2013USD ($)case | Dec. 31, 2018USD ($)case |
Loss Contingencies [Line Items] | ||||||
Amount of litigation settlement awarded to other party | $ | $ 145,000,000 | |||||
Liggett | ||||||
Loss Contingencies [Line Items] | ||||||
Amount of litigation settlement awarded to other party | $ | $ 790,000 | |||||
Liggett | Engle Progeny Cases | ||||||
Loss Contingencies [Line Items] | ||||||
Cases with verdicts | 25 | |||||
Plaintiffs' verdicts (in cases) | 16 | |||||
Cases with verdicts in favor of defendants | 9 | |||||
Cases including punitive damages (in cases) | 5 | |||||
Cases settled | 20 | 9 | 124 | 4,900 | ||
Amount of litigation settlement awarded to other party | $ | $ 4,100 | $ 1,400 | $ 17,650 | $ 110,000 | ||
Liggett and Vector Tobacco | Engle Progeny Cases | ||||||
Loss Contingencies [Line Items] | ||||||
Cases settled | 184 | |||||
Amount of litigation settlement awarded to other party | $ | $ 7,600 |
Contingencies (Individual Actio
Contingencies (Individual Actions) (Details) | Dec. 31, 2018case |
Individual Actions Cases | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 32 |
Liggett | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 1 |
Liggett | Individual Actions Cases | Florida | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 21 |
Liggett | Individual Actions Cases | Illinois | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 4 |
Liggett | Individual Actions Cases | New York | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 2 |
Liggett | Individual Actions Cases | Louisiana | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 2 |
Liggett | Individual Actions Cases | West Virginia | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 2 |
Liggett | Individual Actions Cases | Ohio | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 1 |
Contingencies (Engle Progeny _2
Contingencies (Engle Progeny Cases and Settlements) (Details) $ in Thousands | Nov. 21, 1996USD ($) | Sep. 30, 2017USD ($)case | Jun. 30, 2017USD ($)case | Dec. 31, 2016USD ($)case | Feb. 28, 2015 | Oct. 31, 2013USD ($)case | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($)case | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 07, 2016USD ($) |
Loss Contingencies [Line Items] | |||||||||||
Amount of litigation settlement awarded to other party | $ 145,000,000 | ||||||||||
Litigation settlement and judgment expense (income) | $ (1,784) | $ 6,591 | $ 20,000 | ||||||||
Liggett and Vector Tobacco | Engle Progeny Cases | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Cases settled | case | 184 | ||||||||||
Amount of litigation settlement awarded to other party | $ 7,600 | ||||||||||
Cases pending (in cases) | case | 70 | ||||||||||
Liggett | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Amount of litigation settlement awarded to other party | $ 790,000 | ||||||||||
Cases pending (in cases) | case | 1 | ||||||||||
Liggett | Engle Progeny Cases | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Cases settled | case | 20 | 9 | 124 | 4,900 | |||||||
Amount of litigation settlement awarded to other party | $ 4,100 | $ 1,400 | $ 17,650 | $ 110,000 | |||||||
Litigation settlement amount paid in lump sum | $ 14,000 | $ 61,600 | |||||||||
Litigation settlement, installment term | 14 years | ||||||||||
Claims dismissed (more than) | case | 4,900 | ||||||||||
Litigation settlement and judgment expense (income) | $ 86,213 | $ 17,650 | |||||||||
Litigation settlement and judgment expense, amount discounted | 25,000 | ||||||||||
Litigation settlement amount paid in installment payments | 48,000 | $ 3,650 | |||||||||
Litigation settlement amount of estimated future payments per annum | $ 3,400 | ||||||||||
Liggett | Lukacs, Campbell, Douglas, Clay, Tullo, Ward Rizzuto, Lambert and Buchanan | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Payments for legal settlements | $ 39,773 | ||||||||||
Measurement Input, Discount Rate [Member] | Liggett | Engle Progeny Cases | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Discount rate | 0.11 |
Contingencies (Judgments Paid M
Contingencies (Judgments Paid Maryland and Only Liggett Cases) (Details) | Dec. 31, 2018case |
Individual Actions Cases | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 32 |
Liggett | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 1 |
Maryland | Liggett | Individual Actions Cases | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 16 |
Contingencies (Class Actions, H
Contingencies (Class Actions, Health Care Cost Recovery Actions, and Upcoming Trials) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2015case | Oct. 31, 2013case | May 31, 2013case | Dec. 31, 2018USD ($)defendantcase | Dec. 31, 2001case | |
Parsons v. AC & S Inc. | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | $ | $ 1,000 | ||||
Number of defendants in bankruptcy | defendant | 3 | ||||
Engle Progeny Cases | |||||
Loss Contingencies [Line Items] | |||||
Pending claims scheduled for trial | 2 | ||||
Individual Actions Cases | |||||
Loss Contingencies [Line Items] | |||||
Cases pending (in cases) | 32 | ||||
Liggett | |||||
Loss Contingencies [Line Items] | |||||
Cases pending (in cases) | 1 | ||||
Liggett | Class Actions | |||||
Loss Contingencies [Line Items] | |||||
Cases pending (in cases) | 3 | ||||
Liggett | Crow Creek Sioux Tribe v. American Tobacco Company | |||||
Loss Contingencies [Line Items] | |||||
Cases pending (in cases) | 1 | ||||
Liggett | Engle Progeny Cases | |||||
Loss Contingencies [Line Items] | |||||
Claims dismissed | 4,900 | ||||
Liggett and Vector Tobacco | Engle Progeny Cases | |||||
Loss Contingencies [Line Items] | |||||
Cases pending (in cases) | 70 | ||||
West Virginia | Tobacco Litigation Personal Injury Cases | |||||
Loss Contingencies [Line Items] | |||||
Cases pending (in cases) | 750 | ||||
Claims dismissed | 1 | ||||
Number of plaintiffs | 30 | ||||
West Virginia | Liggett | Tobacco Litigation Personal Injury Cases | |||||
Loss Contingencies [Line Items] | |||||
Cases pending (in cases) | 60 | ||||
West Virginia | Liggett | Individual Actions Cases | |||||
Loss Contingencies [Line Items] | |||||
Cases pending (in cases) | 2 |
Contingencies (MSA and Other St
Contingencies (MSA and Other State Settlement Agreements) (Details) | Dec. 28, 2017USD ($) | Dec. 31, 2018USD ($)sponsorship | Mar. 31, 1998USD ($)state |
Health Care Cost Recovery Actions | |||
Loss Contingencies [Line Items] | |||
Number of states with settled litigation | state | 46 | ||
Number of brand name sponsorships allowed | sponsorship | 1 | ||
Brand name sponsorship period | 12 months | ||
Annual payment requirement | $ 9,000,000,000 | ||
Liggett | |||
Loss Contingencies [Line Items] | |||
Number of states with settled litigation | state | 45 | ||
Liggett | Health Care Cost Recovery Actions | |||
Loss Contingencies [Line Items] | |||
Estimated litigation liability | $ 0 | ||
Percentage of cigarettes sales exceeds market share exemption | 1.65% | ||
Vector Tobacco | Health Care Cost Recovery Actions | |||
Loss Contingencies [Line Items] | |||
Estimated litigation liability | $ 0 | ||
Percentage of cigarettes sales exceeds market share exemption | 0.28% | ||
Liggett and Vector Tobacco | Health Care Cost Recovery Actions | |||
Loss Contingencies [Line Items] | |||
Estimated litigation liability | $ 169,000,000 | ||
Payments for legal settlements | $ 132,500,000 | ||
Product Concentration Risk | Sales Revenue | Liggett and Vector Tobacco | |||
Loss Contingencies [Line Items] | |||
Concentration risk percentage | 4.00% |
Contingencies (Certain MSA Disp
Contingencies (Certain MSA Disputes) (Details) $ in Thousands | 12 Months Ended | 60 Months Ended |
Dec. 31, 2018USD ($)state | Dec. 31, 2017USD ($) | |
2003 NPM Adjustment | ||
Loss Contingencies [Line Items] | ||
Number of states agreed to single arbitration | state | 48 | |
Aggregate number of settling states | state | 49 | |
Number of settling states with diligent enforcement not contested | state | 37 | |
Combined allocable share, percentage | 75.00% | |
Liggett and Vector Tobacco | 2004-2010 NPM Adjustment | ||
Loss Contingencies [Line Items] | ||
Amounts accrued | $ | $ 13,400 | |
Liggett and Vector Tobacco | Cost of Sales | Health Care Cost Recovery Actions, NPM Adjustment | ||
Loss Contingencies [Line Items] | ||
Settlement adjustment credit | $ | 8,380 | $ 24,460 |
Liggett | 2011-2015 NPM Adjustment | ||
Loss Contingencies [Line Items] | ||
Amounts accrued | $ | $ 27,300 |
Contingencies (_Gross_ v. _Net_
Contingencies (“Gross” v. “Net” Calculations and Other State Settlements) (Details) | Jan. 12, 2016USD ($) | Nov. 21, 1996USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2003USD ($) | Mar. 31, 1998USD ($)state |
Loss Contingencies [Line Items] | |||||
Amount of litigation settlement awarded to other party | $ 145,000,000,000 | ||||
Health Care Cost Recovery Actions | |||||
Loss Contingencies [Line Items] | |||||
Annual payment requirement | $ 9,000,000,000 | ||||
Liggett | |||||
Loss Contingencies [Line Items] | |||||
Amount of litigation settlement awarded to other party | $ 790,000,000 | ||||
Liggett | Health Care Cost Recovery Actions | |||||
Loss Contingencies [Line Items] | |||||
Number of states not included in settlement agreement | state | 4 | ||||
Minnesota | Liggett | Health Care Cost Recovery Actions | |||||
Loss Contingencies [Line Items] | |||||
Annual payment requirement | $ 100,000 | ||||
Florida | Liggett | Health Care Cost Recovery Actions | |||||
Loss Contingencies [Line Items] | |||||
Annual payment requirement | $ 250,000 | ||||
Amount of litigation settlement awarded to other party | $ 1,200,000 | ||||
Years annual payments required | 21 years | ||||
Years annual payments required that are subject to inflation adjustment | 12 years | ||||
Mississippi | Liggett | Health Care Cost Recovery Actions | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | $ 27,000,000 | ||||
Punitive damages and attorney's fees sought | $ 20,000,000 |
Contingencies (Activity in Accr
Contingencies (Activity in Accruals for MSA and Tobacco Litigation Schedule) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingency Accrual [Roll Forward] | |||
Current liabilities, beginning balance | $ 12,644 | $ 19,851 | $ 52,145 |
Expenses | 169,555 | 155,921 | 127,165 |
NPM Settlement adjustment | (595) | ||
Change in MSA obligations capitalized as inventory | (1,438) | 76 | 1,568 |
Payments | (142,898) | (168,833) | (162,659) |
Payments | (40) | (3,426) | 0 |
Interest on withholding | 32 | 429 | 543 |
Current liabilities, ending balance | 36,871 | 12,644 | 19,851 |
Noncurrent liabilities, beginning balance | 41,319 | 49,770 | 44,812 |
Expenses | 0 | 0 | 3,650 |
NPM Settlement adjustment | (5,703) | ||
Reclassification to/(from) non-current liabilities | (429) | 6,993 | 1,089 |
Interest on withholding | 2,172 | 2,896 | 2,397 |
Noncurrent liabilities, ending balance | 38,177 | 41,319 | 49,770 |
Settled Litigation | |||
Loss Contingency Accrual [Roll Forward] | |||
Current liabilities, beginning balance | 12,384 | 16,192 | 29,241 |
Expenses | 168,820 | 149,355 | 110,486 |
NPM Settlement adjustment | (595) | ||
Change in MSA obligations capitalized as inventory | (1,438) | 76 | 1,568 |
Payments | (141,963) | (151,296) | (122,977) |
Payments | (40) | 0 | 0 |
Interest on withholding | 0 | 0 | 37 |
Current liabilities, ending balance | 36,561 | 12,384 | 16,192 |
Noncurrent liabilities, beginning balance | 21,479 | 22,257 | 20,094 |
Expenses | 0 | 0 | 0 |
NPM Settlement adjustment | (5,703) | ||
Reclassification to/(from) non-current liabilities | (647) | (150) | (2,163) |
Interest on withholding | 0 | 0 | 0 |
Noncurrent liabilities, ending balance | 16,383 | 21,479 | 22,257 |
Pending Litigation | |||
Loss Contingency Accrual [Roll Forward] | |||
Current liabilities, beginning balance | 260 | 3,659 | 22,904 |
Expenses | 735 | 6,566 | 16,679 |
NPM Settlement adjustment | 0 | ||
Change in MSA obligations capitalized as inventory | 0 | 0 | 0 |
Payments | (935) | (17,537) | (39,682) |
Payments | 0 | (3,426) | 0 |
Interest on withholding | 32 | 429 | 506 |
Current liabilities, ending balance | 310 | 260 | 3,659 |
Noncurrent liabilities, beginning balance | 19,840 | 27,513 | 24,718 |
Expenses | 0 | 0 | 3,650 |
NPM Settlement adjustment | 0 | ||
Reclassification to/(from) non-current liabilities | 218 | 7,143 | 3,252 |
Interest on withholding | 2,172 | 2,896 | 2,397 |
Noncurrent liabilities, ending balance | $ 21,794 | $ 19,840 | $ 27,513 |
Contingencies (Other Matters) (
Contingencies (Other Matters) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Liggett and Vector Tobacco | Bonds | Maximum | |
Loss Contingencies [Line Items] | |
Estimate of possible loss | $ 500 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash paid during the period for: | |||
Interest | $ 107,021 | $ 117,453 | $ 108,422 |
Income taxes | 26,529 | 26,885 | 46,811 |
Non-cash investing and financing activities: | |||
Issuance of stock dividend | 671 | 644 | 609 |
Decrease in non-controlling interest related to purchase of subsidiary | (73,953) | 0 | 0 |
Notes payable issued for purchase of subsidiary | 30,000 | 0 | 0 |
Contingent consideration related to purchase of subsidiary | 6,304 | 0 | 0 |
Net receivable from purchase of subsidiary | $ 497 | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) | Oct. 26, 2016USD ($)shares | Nov. 04, 2011USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015 | Feb. 21, 2018 | Dec. 01, 2016$ / shares | Nov. 30, 2016shares | Dec. 31, 2013USD ($)shares | Sep. 30, 2012ft² |
Related Party Transaction [Line Items] | |||||||||||||
Impairment of investment securities | $ 75,000 | $ 4,891,000 | |||||||||||
Operating lease term | 1 year | ||||||||||||
Ladenburg Thalmann Financial Services Inc. (“LTS”) | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Investment owned (in shares) | shares | 15,191,205 | ||||||||||||
Equity method ownership percentage | 10.36% | ||||||||||||
Castle Brands Inc. | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Investment owned (in shares) | shares | 12,895,018 | ||||||||||||
Morgans Hotel Group Co. | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Investment owned (in shares) | shares | 2,459,788 | ||||||||||||
Investment owned percent | 7.03% | ||||||||||||
Equity Method Investee | Ladenburg Thalmann Financial Services Inc. (“LTS”) | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue from related parties | $ 850,000 | 850,000 | 850,000 | ||||||||||
Equity Method Investee | Ladenburg Thalmann Financial Services Inc. (“LTS”) | Forecast | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue from related parties | $ 850,000 | ||||||||||||
Equity Method Investee | Ladenburg Thalmann Financial Services Inc. (“LTS”) | LTS Loan Due Nov 2016 | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Debt instrument term | 5 years | ||||||||||||
Loan receivable | $ 15,000,000 | ||||||||||||
Interest rate on receivable | 11.00% | ||||||||||||
Interest income | 205,000 | ||||||||||||
Amount of debt surrendered or exchanged for equity in investee | $ 1,680,000 | ||||||||||||
Equity Method Investee | Ladenburg Thalmann Financial Services Inc. (“LTS”) | LTS Warrants | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Investment warrants outstanding (in shares) | shares | 1,000,000 | ||||||||||||
Equity Method Investee | Ladenburg Thalmann Financial Services Inc. (“LTS”) | LTS Preferred | Series A Cumulative Redeemable Preferred Stock | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Investment owned (in shares) | shares | 240,000 | ||||||||||||
Interest income | $ 480,000 | 480,000 | 480,000 | ||||||||||
Preferred stock dividend rate | 8.00% | ||||||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 25 | ||||||||||||
Equity Method Investee | Castle Brands Inc. | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue from related parties | $ 100,000 | 100,000 | 100,000 | ||||||||||
Equity Method Investee | Castle Brands Inc. | Forecast | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue from related parties | $ 100,000 | ||||||||||||
Equity Method Investee | Castle Brands Inc. | Variable Interest Senior Convertible Debt | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Principal amount | $ 200,000 | ||||||||||||
Interest rate | 5.00% | ||||||||||||
Convertible share (in shares) | shares | 223,859 | ||||||||||||
President and Chief Executive Officer | Insurance Commissions | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Amount of transaction | 247,000 | 249,000 | 247,000 | ||||||||||
President and Chief Executive Officer | Reserved Unit in Real Estate Venture | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Amount of transaction | 8,500,000 | ||||||||||||
President and Chief Executive Officer | Ladenburg Thalmann Financial Services Inc. (“LTS”) | Compensation Paid to Vice Chairman of LTS | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Amount of transaction | 1,525,000 | 1,425,000 | 1,250,000 | ||||||||||
President and Chief Executive Officer | Ladenburg Thalmann Financial Services Inc. (“LTS”) | Director Fees Paid to Vice Chairman of LTS | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Amount of transaction | 50,000 | 53,000 | 36,000 | ||||||||||
President and Chief Executive Officer | Castle Brands Inc. | Compensation Paid to President and CEO of Castle | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Amount of transaction | 500,000 | 400,000 | |||||||||||
Executive Vice President | Ladenburg Thalmann Financial Services Inc. (“LTS”) | Compensation Paid to President and CEO of LTS | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Amount of transaction | 2,025,000 | 1,625,000 | 1,450,000 | ||||||||||
Beneficial Owner | Dr. Phillip Frost | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Ownership percentage by shareholders | 13.90% | ||||||||||||
Percent of ownership by management (more than 10%) | 10.00% | ||||||||||||
Investee | Morgans Hotel Group Co. | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Warrants exercise price (in dollars per share) | $ / shares | $ 2.25 | ||||||||||||
Maturities of investment securities | $ 5,535,000 | ||||||||||||
Gross realized gains on sales | 2,140,000 | ||||||||||||
Impairment of investment securities | $ 4,772,000 | ||||||||||||
Affiliated Entity [Member] | Frost Real Estate Holdings, LLC | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Area of real estate property | ft² | 12,390 | ||||||||||||
Monthly lease payments, year 1-4 | 36,000 | ||||||||||||
Monthly lease payments, year 5 and thereafter | 41,000 | ||||||||||||
Expenses from transactions with related party | 450,000 | 415,000 | 380,000 | ||||||||||
Son of Company's President and Chief Executive Officer | Douglas Elliman Realty, LLC | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Expenses from transactions with related party | $ 318,000 | $ 787,000 | $ 640,000 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements (Fair Value Measurements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets: | |||
Investment securities available for sale | $ 131,569 | ||
Total | 683,605 | ||
Long-term investments, fair value | 54,628 | $ 0 | |
Equity securities at fair value that qualify for the NAV practical expedient | 54,628 | 0 | |
Liabilities: | |||
Contingent consideration liability | 6,304 | ||
Fair value of derivatives embedded within convertible debt | 31,424 | ||
Fair value of derivatives embedded within convertible debt | 24,789 | 76,413 | |
Total | 37,728 | ||
Long-term investments | 66,259 | 81,291 | |
Impairment of long-term investments | $ 0 | (50) | $ (385) |
Douglas Elliman | |||
Liabilities: | |||
Voting interest acquired | 29.41% | ||
5.5% Variable Interest Senior Convertible Notes due 2020 | Variable Interest Senior Convertible Debt | |||
Liabilities: | |||
Fair value of derivatives embedded within convertible debt | $ 24,789 | 45,249 | |
Interest rate | 5.50% | ||
Marketable equity securities | |||
Assets: | |||
Investment securities available for sale | $ 26,010 | ||
Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 21,192 | ||
Equity securities | |||
Assets: | |||
Investment securities available for sale | 47,202 | ||
U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 28,514 | ||
Corporate securities | |||
Assets: | |||
Investment securities available for sale | 41,733 | ||
U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 4,369 | ||
Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 401 | ||
Commercial paper | |||
Assets: | |||
Investment securities available for sale | 5,870 | ||
Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 2,330 | ||
Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 1,150 | ||
Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 84,367 | ||
Money market funds | |||
Assets: | |||
Cash and cash equivalents | 448,560 | ||
Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 46,062 | ||
Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 2,251 | ||
Bonds | |||
Assets: | |||
Cash and cash equivalents | 535 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Investment securities available for sale | 47,202 | ||
Total | 496,297 | ||
Equity securities at fair value that qualify for the NAV practical expedient | 0 | ||
Liabilities: | |||
Contingent consideration liability | 0 | ||
Fair value of derivatives embedded within convertible debt | 0 | ||
Total | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities | |||
Assets: | |||
Investment securities available for sale | 26,010 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 21,192 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | |||
Assets: | |||
Investment securities available for sale | 47,202 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | |||
Assets: | |||
Cash and cash equivalents | 448,560 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Bonds | |||
Assets: | |||
Cash and cash equivalents | 535 | ||
Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Investment securities available for sale | 84,367 | ||
Total | 132,680 | ||
Equity securities at fair value that qualify for the NAV practical expedient | 0 | ||
Liabilities: | |||
Contingent consideration liability | 0 | ||
Fair value of derivatives embedded within convertible debt | 0 | ||
Total | 0 | ||
Significant Other Observable Inputs (Level 2) | Marketable equity securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Other Observable Inputs (Level 2) | Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Other Observable Inputs (Level 2) | Equity securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Other Observable Inputs (Level 2) | U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 28,514 | ||
Significant Other Observable Inputs (Level 2) | Corporate securities | |||
Assets: | |||
Investment securities available for sale | 41,733 | ||
Significant Other Observable Inputs (Level 2) | U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 4,369 | ||
Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 401 | ||
Significant Other Observable Inputs (Level 2) | Commercial paper | |||
Assets: | |||
Investment securities available for sale | 5,870 | ||
Significant Other Observable Inputs (Level 2) | Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 2,330 | ||
Significant Other Observable Inputs (Level 2) | Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 1,150 | ||
Significant Other Observable Inputs (Level 2) | Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 84,367 | ||
Significant Other Observable Inputs (Level 2) | Money market funds | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Significant Other Observable Inputs (Level 2) | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 46,062 | ||
Significant Other Observable Inputs (Level 2) | Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 2,251 | ||
Significant Other Observable Inputs (Level 2) | Bonds | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Total | 0 | ||
Equity securities at fair value that qualify for the NAV practical expedient | 0 | ||
Liabilities: | |||
Contingent consideration liability | 6,304 | ||
Fair value of derivatives embedded within convertible debt | 31,424 | ||
Total | 37,728 | ||
Significant Unobservable Inputs (Level 3) | Marketable equity securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | Equity securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | Corporate securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | Commercial paper | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | Money market funds | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Significant Unobservable Inputs (Level 3) | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Significant Unobservable Inputs (Level 3) | Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Significant Unobservable Inputs (Level 3) | Bonds | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | |||
Assets: | |||
Investment securities available for sale | 150,489 | ||
Total | 366,672 | ||
Liabilities: | |||
Fair value of derivatives embedded within convertible debt | 76,413 | ||
Fair Value, Measurements, Recurring | Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 21,041 | ||
Fair Value, Measurements, Recurring | Equity securities | |||
Assets: | |||
Investment securities available for sale | 44,634 | ||
Fair Value, Measurements, Recurring | U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 28,502 | ||
Fair Value, Measurements, Recurring | Corporate securities | |||
Assets: | |||
Investment securities available for sale | 41,329 | ||
Fair Value, Measurements, Recurring | U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 4,564 | ||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 426 | ||
Fair Value, Measurements, Recurring | Commercial paper | |||
Assets: | |||
Investment securities available for sale | 7,027 | ||
Fair Value, Measurements, Recurring | Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 2,316 | ||
Fair Value, Measurements, Recurring | Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 650 | ||
Fair Value, Measurements, Recurring | Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 84,814 | ||
Fair Value, Measurements, Recurring | Money market funds | |||
Assets: | |||
Cash and cash equivalents | 166,915 | ||
Fair Value, Measurements, Recurring | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 43,781 | ||
Fair Value, Measurements, Recurring | Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 2,497 | ||
Fair Value, Measurements, Recurring | Bonds | |||
Assets: | |||
Cash and cash equivalents | 2,990 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Investment securities available for sale | 65,675 | ||
Total | 235,580 | ||
Liabilities: | |||
Fair value of derivatives embedded within convertible debt | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 21,041 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | |||
Assets: | |||
Investment securities available for sale | 44,634 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | |||
Assets: | |||
Cash and cash equivalents | 166,915 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Bonds | |||
Assets: | |||
Cash and cash equivalents | 2,990 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Investment securities available for sale | 84,814 | ||
Total | 131,092 | ||
Liabilities: | |||
Fair value of derivatives embedded within convertible debt | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 28,502 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate securities | |||
Assets: | |||
Investment securities available for sale | 41,329 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 4,564 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 426 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial paper | |||
Assets: | |||
Investment securities available for sale | 7,027 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 2,316 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 650 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 84,814 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 43,781 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 2,497 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Bonds | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Total | 0 | ||
Liabilities: | |||
Fair value of derivatives embedded within convertible debt | 76,413 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commercial paper | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Money market funds | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Bonds | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Nonrecurring | |||
Assets: | |||
Total | 4,475 | ||
Long-term investments, fair value | 4,475 | ||
Liabilities: | |||
Gain (loss) on long-term investments | (525) | ||
Gain (loss) on long-term investments and real estate held for sale | (525) | ||
Long-term investments | 5,000 | ||
Impairment of long-term investments | (525) | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Total | 4,475 | ||
Long-term investments, fair value | $ 4,475 | ||
Current Restricted Assets | Fair Value, Measurements, Recurring | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 2,570 | ||
Restricted Assets | Fair Value, Measurements, Recurring | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | $ 3,910 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements (Quantitative Information about Level 3 Fair Value Measurements) (Details) | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value of derivatives embedded within convertible debt | $ 24,789,000 | $ 76,413,000 |
Contingent consideration liability | 6,304,000 | |
Nonrecurring nonfinancial assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability | 6,304,000 | |
Estimated fair value of the Douglas Elliman reporting unit | 320,000,000 | |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value of derivatives embedded within convertible debt | $ 31,424,000 | $ 76,413,000 |
Assumed annual stock dividend | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.05 | 0.05 |
Assumed annual cash dividend | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | $ / shares | 1.60 | 1.60 |
Stock price | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | $ / shares | 9.73 | 22.38 |
Convertible trading price (as a percentage of par value) | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 1.0031 | 1.1519 |
Volatility | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.2039 | 0.1798 |
Risk-free rate | Significant Unobservable Inputs (Level 3) | Monte Carlo simulation model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0245 | |
Implied credit spread | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.085 | 0.035 |
Implied credit spread | Significant Unobservable Inputs (Level 3) | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.080 | 0.030 |
Implied credit spread | Significant Unobservable Inputs (Level 3) | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.090 | 0.040 |
Leverage-adjusted equity volatility of peer firms | Significant Unobservable Inputs (Level 3) | Monte Carlo simulation model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.3022 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | ||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | $ 445,939 | $ 513,869 | $ 481,488 | $ 428,966 | $ 435,654 | $ 484,625 | $ 471,989 | $ 415,208 | $ 1,870,262 | $ 1,807,476 | $ 1,690,949 | ||
Operating income (loss) | 48,086 | $ 66,018 | $ 61,861 | $ 48,084 | 48,204 | $ 59,723 | $ 74,300 | $ 53,421 | 224,049 | 235,648 | 234,505 | ||
Equity in earnings from real estate ventures | 14,446 | 21,395 | 5,200 | ||||||||||
Identifiable assets | 1,549,504 | 1,328,278 | 1,549,504 | 1,328,278 | 1,404,035 | $ 1,349,953 | |||||||
Depreciation and amortization | 18,807 | 18,614 | 22,359 | ||||||||||
Capital expenditures | 17,682 | 19,869 | 26,691 | ||||||||||
Litigation settlement and judgment expense (income) | (1,784) | 6,591 | 20,000 | ||||||||||
Restructuring charges | 0 | 0 | 41 | ||||||||||
Investments in real estate ventures | 141,105 | 188,131 | 141,105 | 188,131 | 221,258 | ||||||||
Investment securities at fair value | 131,569 | 150,489 | 131,569 | 150,489 | |||||||||
Long-term investments (of which $54,628 and $0 were carried at fair value) | 66,259 | 81,291 | 66,259 | 81,291 | |||||||||
Equity-method investments | 11,631 | 15,841 | 11,631 | 15,841 | |||||||||
Corporate and Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 0 | (838) | (776) | ||||||||||
Operating income (loss) | (25,913) | (26,191) | (26,020) | ||||||||||
Equity in earnings from real estate ventures | 0 | 0 | 0 | ||||||||||
Identifiable assets | 693,970 | 460,186 | 693,970 | 460,186 | 502,336 | ||||||||
Depreciation and amortization | 1,017 | 1,277 | 1,650 | ||||||||||
Capital expenditures | 22 | 35 | 86 | ||||||||||
Cash | 474,974 | 195,053 | 474,974 | 195,053 | 280,691 | ||||||||
Investment securities at fair value | 150,489 | 150,489 | 156,903 | ||||||||||
Long-term investments (of which $54,628 and $0 were carried at fair value) | 54,628 | 65,450 | 54,628 | 65,450 | 34,975 | ||||||||
Equity-method investments | 11,631 | 15,841 | 11,631 | 15,841 | 17,721 | ||||||||
Tobacco | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | [1] | 1,111,094 | 1,080,950 | 1,011,620 | |||||||||
Income (expense) from MSA/NPM settlement | 6,298 | 2,721 | (247) | ||||||||||
Litigation settlement and judgment expense (income) | 685 | 6,591 | 20,000 | ||||||||||
Restructuring charges | 41 | ||||||||||||
Tobacco | Operating Segments | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 1,111,094 | 1,080,950 | 1,011,620 | ||||||||||
Operating income (loss) | 246,527 | 240,400 | 237,524 | ||||||||||
Equity in earnings from real estate ventures | 0 | 0 | 0 | ||||||||||
Identifiable assets | 315,706 | 309,316 | 315,706 | 309,316 | 328,349 | ||||||||
Depreciation and amortization | 8,210 | 8,826 | 10,224 | ||||||||||
Capital expenditures | 4,599 | 3,705 | 6,445 | ||||||||||
Real Estate | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 759,168 | 727,364 | 680,105 | ||||||||||
Income (expense) from MSA/NPM settlement | 2,469 | ||||||||||||
Real Estate | Operating Segments | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 759,168 | 727,364 | 680,105 | ||||||||||
Operating income (loss) | 3,435 | 21,439 | 23,001 | ||||||||||
Equity in earnings from real estate ventures | 14,446 | 21,395 | 5,200 | ||||||||||
Identifiable assets | $ 539,828 | $ 558,776 | 539,828 | 558,776 | 573,350 | ||||||||
Depreciation and amortization | 9,580 | 8,511 | 10,485 | ||||||||||
Capital expenditures | $ 13,061 | $ 16,129 | $ 20,160 | ||||||||||
[1] | Revenues and cost of sales include federal excise taxes of $469,836 , $460,561 and $425,980 for the years ended December 31, 2018 , 2017 and 2016 |
Quarterly Financial Results (_3
Quarterly Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 27, 2018 | Sep. 28, 2017 | Sep. 29, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues | $ 445,939 | $ 513,869 | $ 481,488 | $ 428,966 | $ 435,654 | $ 484,625 | $ 471,989 | $ 415,208 | $ 1,870,262 | $ 1,807,476 | $ 1,690,949 | |||
Gross Profit | 140,798 | 153,567 | 148,722 | 134,691 | 136,541 | 146,509 | 157,095 | 139,285 | ||||||
Operating income | 48,086 | 66,018 | 61,861 | 48,084 | 48,204 | 59,723 | 74,300 | 53,421 | 224,049 | 235,648 | 234,505 | |||
Net income | 20,319 | 15,028 | 18,996 | 3,664 | 42,951 | 20,478 | 31,546 | (4,225) | 58,007 | 90,750 | 77,266 | |||
Net income applicable to common shares attributed to Vector Group Ltd. | $ 21,074 | $ 12,002 | $ 17,818 | $ 7,211 | $ 42,724 | $ 19,264 | $ 26,811 | $ (4,227) | $ 58,105 | $ 84,572 | $ 71,127 | |||
Per basic common share: | ||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. (in dollars per share) | $ 0.14 | $ 0.07 | $ 0.12 | $ 0.04 | $ 0.30 | $ 0.13 | $ 0.18 | $ (0.04) | $ 0.37 | $ 0.56 | $ 0.50 | |||
Per diluted common share: | ||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. (in dollars per share) | $ 0.14 | $ 0.07 | $ 0.12 | $ 0.04 | $ 0.26 | $ 0.13 | $ 0.18 | $ (0.04) | $ 0.37 | $ 0.56 | $ 0.50 | |||
Stock dividend paid to company stockholders | 5.00% | 5.00% | 5.00% |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information (Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | |||||
Cash and cash equivalents | $ 584,581 | $ 301,353 | $ 393,530 | ||
Investment securities at fair value | 131,569 | 150,489 | |||
Accounts receivable - trade, net | 34,246 | $ 33,995 | 29,481 | ||
Intercompany receivables | 0 | 0 | |||
Inventories | 90,997 | 89,790 | |||
Income taxes receivable, net | 0 | 11,217 | |||
Restricted assets | 4,477 | 10,258 | |||
Other current assets | 26,351 | 28,770 | 21,121 | ||
Total current assets | 872,221 | 625,872 | 613,709 | ||
Property, plant and equipment, net | 86,736 | 85,516 | |||
Investments in real estate, net | 26,220 | 23,952 | |||
Long-term investments (of which $54,628 and $0 were carried at fair value) | 66,259 | 81,291 | |||
Investments in real estate ventures | 141,105 | 188,131 | |||
Investments in consolidated subsidiaries | 0 | 0 | |||
Restricted assets | 6,306 | 3,488 | |||
Goodwill and other intangible assets, net | 266,611 | 267,708 | |||
Prepaid pension costs | 23,869 | 27,697 | |||
Other assets | 60,177 | 46,298 | 36,786 | ||
Total assets | 1,549,504 | 1,349,953 | 1,328,278 | 1,404,035 | |
Current liabilities: | |||||
Current portion of notes payable and long-term debt | 256,134 | 33,820 | |||
Current portion of fair value of derivatives embedded within convertible debt | 6,635 | 0 | |||
Current portion of employee benefits | 875 | 952 | |||
Intercompany payables | 0 | 0 | |||
Income taxes payable, net | 5,252 | 100 | |||
Litigation accruals and current payments due under the Master Settlement Agreement | 36,871 | 12,644 | |||
Other current liabilities | 179,153 | 167,454 | 157,123 | ||
Total current liabilities | 484,920 | 214,970 | 204,639 | ||
Notes payable, long-term debt and other obligations, less current portion | 1,386,697 | 1,194,244 | |||
Fair value of derivatives embedded within convertible debt | 24,789 | 76,413 | |||
Non-current employee benefits | 61,288 | 62,242 | |||
Deferred income taxes, net | 37,411 | 55,577 | 58,801 | ||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 101,765 | 63,699 | |||
Total liabilities | 2,096,870 | 1,695,128 | 1,660,038 | ||
Commitments and contingencies (Notes 11 and 15) | |||||
Total Vector Group Ltd. stockholders' deficiency | (548,059) | (422,440) | (413,919) | ||
Non-controlling interest | 693 | 77,265 | 82,159 | ||
Total stockholders' deficiency | (547,366) | (345,175) | (331,760) | $ (253,272) | $ (122,161) |
Total liabilities and stockholders' deficiency | 1,549,504 | $ 1,349,953 | 1,328,278 | ||
Consolidating Adjustments | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | |||
Investment securities at fair value | 0 | 0 | |||
Accounts receivable - trade, net | 0 | 0 | |||
Intercompany receivables | (38,391) | (29,541) | |||
Inventories | 0 | 0 | |||
Income taxes receivable, net | (1,268) | (11,444) | |||
Restricted assets | 0 | 0 | |||
Other current assets | 0 | (20,008) | |||
Total current assets | (39,659) | (60,993) | |||
Property, plant and equipment, net | 0 | 0 | |||
Investments in real estate, net | 0 | 0 | |||
Long-term investments (of which $54,628 and $0 were carried at fair value) | 0 | 0 | |||
Investments in real estate ventures | 0 | 0 | |||
Investments in consolidated subsidiaries | (683,401) | (469,436) | |||
Restricted assets | 0 | 0 | |||
Goodwill and other intangible assets, net | 0 | 0 | |||
Prepaid pension costs | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | (723,060) | (530,429) | |||
Current liabilities: | |||||
Current portion of notes payable and long-term debt | 0 | (20,008) | |||
Current portion of fair value of derivatives embedded within convertible debt | 0 | ||||
Current portion of employee benefits | 0 | 0 | |||
Intercompany payables | (38,391) | (29,541) | |||
Income taxes payable, net | (1,268) | (11,444) | |||
Litigation accruals and current payments due under the Master Settlement Agreement | 0 | 0 | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | (39,659) | (60,993) | |||
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, net | 0 | 0 | |||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 0 | 0 | |||
Total liabilities | (39,659) | (60,993) | |||
Commitments and contingencies (Notes 11 and 15) | |||||
Total Vector Group Ltd. stockholders' deficiency | (683,401) | (469,436) | |||
Non-controlling interest | 0 | 0 | |||
Total stockholders' deficiency | (683,401) | (469,436) | |||
Total liabilities and stockholders' deficiency | (723,060) | (530,429) | |||
Parent/Issuer | Reportable Legal Entities | |||||
Current assets: | |||||
Cash and cash equivalents | 474,880 | 194,719 | |||
Investment securities at fair value | 131,569 | 121,282 | |||
Accounts receivable - trade, net | 0 | 0 | |||
Intercompany receivables | 38,391 | 29,541 | |||
Inventories | 0 | 0 | |||
Income taxes receivable, net | 0 | 22,661 | |||
Restricted assets | 0 | 0 | |||
Other current assets | 1,500 | 20,549 | |||
Total current assets | 646,340 | 388,752 | |||
Property, plant and equipment, net | 506 | 696 | |||
Investments in real estate, net | 0 | 0 | |||
Long-term investments (of which $54,628 and $0 were carried at fair value) | 66,259 | 81,291 | |||
Investments in real estate ventures | 0 | 0 | |||
Investments in consolidated subsidiaries | 431,288 | 469,436 | |||
Restricted assets | 1,495 | 1,501 | |||
Goodwill and other intangible assets, net | 0 | 0 | |||
Prepaid pension costs | 0 | 0 | |||
Other assets | 13,121 | 7,843 | |||
Total assets | 1,159,009 | 949,519 | |||
Current liabilities: | |||||
Current portion of notes payable and long-term debt | 226,343 | 0 | |||
Current portion of fair value of derivatives embedded within convertible debt | 6,635 | ||||
Current portion of employee benefits | 0 | 0 | |||
Intercompany payables | 0 | 0 | |||
Income taxes payable, net | 5,257 | 0 | |||
Litigation accruals and current payments due under the Master Settlement Agreement | 0 | 0 | |||
Other current liabilities | 55,915 | 49,088 | |||
Total current liabilities | 294,150 | 49,088 | |||
Notes payable, long-term debt and other obligations, less current portion | 1,354,219 | 1,190,333 | |||
Fair value of derivatives embedded within convertible debt | 24,789 | 76,413 | |||
Non-current employee benefits | 45,615 | 45,442 | |||
Deferred income taxes, net | (13,084) | 695 | |||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 1,379 | 1,467 | |||
Total liabilities | 1,707,068 | 1,363,438 | |||
Commitments and contingencies (Notes 11 and 15) | |||||
Total Vector Group Ltd. stockholders' deficiency | (548,059) | (413,919) | |||
Non-controlling interest | 0 | 0 | |||
Total stockholders' deficiency | (548,059) | (413,919) | |||
Total liabilities and stockholders' deficiency | 1,159,009 | 949,519 | |||
Subsidiary Guarantors | Reportable Legal Entities | |||||
Current assets: | |||||
Cash and cash equivalents | 23,308 | 17,141 | |||
Investment securities at fair value | 0 | 29,207 | |||
Accounts receivable - trade, net | 15,440 | 15,736 | |||
Intercompany receivables | 0 | 0 | |||
Inventories | 90,997 | 89,790 | |||
Income taxes receivable, net | 0 | 0 | |||
Restricted assets | 1,124 | 3,052 | |||
Other current assets | 6,475 | 3,429 | |||
Total current assets | 137,344 | 158,355 | |||
Property, plant and equipment, net | 38,562 | 42,493 | |||
Investments in real estate, net | 0 | 0 | |||
Long-term investments (of which $54,628 and $0 were carried at fair value) | 0 | 0 | |||
Investments in real estate ventures | 0 | 0 | |||
Investments in consolidated subsidiaries | 252,113 | 0 | |||
Restricted assets | 901 | 1,987 | |||
Goodwill and other intangible assets, net | 107,511 | 107,511 | |||
Prepaid pension costs | 23,869 | 27,697 | |||
Other assets | 13,384 | 12,355 | |||
Total assets | 573,684 | 350,398 | |||
Current liabilities: | |||||
Current portion of notes payable and long-term debt | 29,480 | 53,540 | |||
Current portion of fair value of derivatives embedded within convertible debt | 0 | ||||
Current portion of employee benefits | 875 | 952 | |||
Intercompany payables | 479 | 449 | |||
Income taxes payable, net | 1,263 | 11,542 | |||
Litigation accruals and current payments due under the Master Settlement Agreement | 36,871 | 12,644 | |||
Other current liabilities | 72,094 | 62,353 | |||
Total current liabilities | 141,062 | 141,480 | |||
Notes payable, long-term debt and other obligations, less current portion | 2,349 | 3,448 | |||
Fair value of derivatives embedded within convertible debt | 0 | 0 | |||
Non-current employee benefits | 15,673 | 16,800 | |||
Deferred income taxes, net | 17,732 | 26,459 | |||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 38,179 | 41,315 | |||
Total liabilities | 214,995 | 229,502 | |||
Commitments and contingencies (Notes 11 and 15) | |||||
Total Vector Group Ltd. stockholders' deficiency | 358,689 | 120,896 | |||
Non-controlling interest | 0 | 0 | |||
Total stockholders' deficiency | 358,689 | 120,896 | |||
Total liabilities and stockholders' deficiency | 573,684 | 350,398 | |||
Subsidiary Non-Guarantors | Reportable Legal Entities | |||||
Current assets: | |||||
Cash and cash equivalents | 86,393 | 89,493 | |||
Investment securities at fair value | 0 | 0 | |||
Accounts receivable - trade, net | 18,806 | 13,745 | |||
Intercompany receivables | 0 | 0 | |||
Inventories | 0 | 0 | |||
Income taxes receivable, net | 1,268 | 0 | |||
Restricted assets | 3,353 | 7,206 | |||
Other current assets | 18,376 | 17,151 | |||
Total current assets | 128,196 | 127,595 | |||
Property, plant and equipment, net | 47,668 | 42,327 | |||
Investments in real estate, net | 26,220 | 23,952 | |||
Long-term investments (of which $54,628 and $0 were carried at fair value) | 0 | 0 | |||
Investments in real estate ventures | 141,105 | 188,131 | |||
Investments in consolidated subsidiaries | 0 | 0 | |||
Restricted assets | 3,910 | 0 | |||
Goodwill and other intangible assets, net | 159,100 | 160,197 | |||
Prepaid pension costs | 0 | 0 | |||
Other assets | 33,672 | 16,588 | |||
Total assets | 539,871 | 558,790 | |||
Current liabilities: | |||||
Current portion of notes payable and long-term debt | 311 | 288 | |||
Current portion of fair value of derivatives embedded within convertible debt | 0 | ||||
Current portion of employee benefits | 0 | 0 | |||
Intercompany payables | 37,912 | 29,092 | |||
Income taxes payable, net | 0 | 2 | |||
Litigation accruals and current payments due under the Master Settlement Agreement | 0 | 0 | |||
Other current liabilities | 51,144 | 45,682 | |||
Total current liabilities | 89,367 | 75,064 | |||
Notes payable, long-term debt and other obligations, less current portion | 30,129 | 463 | |||
Fair value of derivatives embedded within convertible debt | 0 | 0 | |||
Non-current employee benefits | 0 | 0 | |||
Deferred income taxes, net | 32,763 | 31,647 | |||
Other liabilities, primarily litigation accruals and payments due under the Master Settlement Agreement | 62,207 | 20,917 | |||
Total liabilities | 214,466 | 128,091 | |||
Commitments and contingencies (Notes 11 and 15) | |||||
Total Vector Group Ltd. stockholders' deficiency | 324,712 | 348,540 | |||
Non-controlling interest | 693 | 82,159 | |||
Total stockholders' deficiency | 325,405 | 430,699 | |||
Total liabilities and stockholders' deficiency | $ 539,871 | $ 558,790 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information (Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | $ 445,939 | $ 513,869 | $ 481,488 | $ 428,966 | $ 435,654 | $ 484,625 | $ 471,989 | $ 415,208 | $ 1,870,262 | $ 1,807,476 | $ 1,690,949 |
Expenses: | |||||||||||
Cost of sales | 1,292,484 | 1,228,046 | 1,097,344 | ||||||||
Operating, selling, administrative and general expenses | 355,513 | 337,191 | 339,059 | ||||||||
Litigation settlement and judgment expense (income) | (1,784) | 6,591 | 20,000 | ||||||||
Management fee expense | 0 | 0 | 0 | ||||||||
Restructuring charges | 0 | 0 | 41 | ||||||||
Operating income | 48,086 | 66,018 | 61,861 | 48,084 | 48,204 | 59,723 | 74,300 | 53,421 | 224,049 | 235,648 | 234,505 |
Other income (expenses): | |||||||||||
Interest expense | (203,780) | (173,685) | (142,982) | ||||||||
Change in fair value of derivatives embedded within convertible debt | 44,989 | 35,919 | 31,710 | ||||||||
Loss on extinguishment of debt | (4,066) | (34,110) | 0 | ||||||||
Equity in earnings from real estate ventures | 14,446 | 21,395 | 5,200 | ||||||||
Equity in earnings (losses) from investments | 3,158 | (765) | (2,754) | ||||||||
Net losses recognized on investment securities | (9,570) | (660) | (3,487) | ||||||||
Equity in earnings in consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Management fee income | 0 | 0 | 0 | ||||||||
Other, net | 10,333 | 5,426 | 4,237 | ||||||||
Income before provision for income taxes | 79,559 | 89,168 | 126,429 | ||||||||
Income tax benefit (expense) | (21,552) | 1,582 | (49,163) | ||||||||
Net income | 20,319 | 15,028 | 18,996 | 3,664 | 42,951 | 20,478 | 31,546 | (4,225) | 58,007 | 90,750 | 77,266 |
Net loss (income) attributed to non-controlling interest | 98 | (6,178) | (6,139) | ||||||||
Net income attributed to Vector Group Ltd. | $ 21,074 | $ 12,002 | $ 17,818 | $ 7,211 | $ 42,724 | $ 19,264 | $ 26,811 | $ (4,227) | 58,105 | 84,572 | 71,127 |
Comprehensive loss (income) attributed to non-controlling interest | 98 | (6,178) | (6,139) | ||||||||
Comprehensive income attributed to Vector Group Ltd. | 56,730 | 83,246 | 68,195 | ||||||||
Consolidating Adjustments | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | (478) | (478) | (478) | ||||||||
Expenses: | |||||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Operating, selling, administrative and general expenses | (478) | (478) | (478) | ||||||||
Litigation settlement and judgment expense (income) | 0 | 0 | 0 | ||||||||
Management fee expense | (11,509) | (11,069) | (10,649) | ||||||||
Restructuring charges | 0 | ||||||||||
Operating income | 11,509 | 11,069 | 10,649 | ||||||||
Other income (expenses): | |||||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Equity in earnings from real estate ventures | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) from investments | 0 | 0 | 0 | ||||||||
Net losses recognized on investment securities | 0 | 0 | 0 | ||||||||
Equity in earnings in consolidated subsidiaries | (199,251) | (215,557) | (176,343) | ||||||||
Management fee income | (11,509) | (11,069) | (10,649) | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Income before provision for income taxes | (199,251) | (215,557) | (176,343) | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Net income | (199,251) | (215,557) | (176,343) | ||||||||
Net loss (income) attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Net income attributed to Vector Group Ltd. | (199,251) | (215,557) | (176,343) | ||||||||
Comprehensive loss (income) attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Comprehensive income attributed to Vector Group Ltd. | (195,820) | (199,187) | (160,318) | ||||||||
Parent/Issuer | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Expenses: | |||||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Operating, selling, administrative and general expenses | 35,332 | 34,790 | 33,964 | ||||||||
Litigation settlement and judgment expense (income) | 0 | 0 | 0 | ||||||||
Management fee expense | 0 | 0 | 0 | ||||||||
Restructuring charges | 0 | ||||||||||
Operating income | (35,332) | (34,790) | (33,964) | ||||||||
Other income (expenses): | |||||||||||
Interest expense | (200,916) | (169,910) | (139,524) | ||||||||
Change in fair value of derivatives embedded within convertible debt | 44,989 | 35,919 | 31,710 | ||||||||
Loss on extinguishment of debt | (4,066) | (34,110) | |||||||||
Equity in earnings from real estate ventures | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) from investments | 3,158 | (729) | (2,664) | ||||||||
Net losses recognized on investment securities | (4,965) | (625) | (855) | ||||||||
Equity in earnings in consolidated subsidiaries | 195,582 | 200,480 | 161,471 | ||||||||
Management fee income | 11,509 | 11,069 | 10,649 | ||||||||
Other, net | 5,000 | 1,930 | 1,124 | ||||||||
Income before provision for income taxes | 14,959 | 9,234 | 27,947 | ||||||||
Income tax benefit (expense) | 43,146 | 75,338 | 43,180 | ||||||||
Net income | 58,105 | 84,572 | 71,127 | ||||||||
Net loss (income) attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Net income attributed to Vector Group Ltd. | 58,105 | 84,572 | 71,127 | ||||||||
Comprehensive loss (income) attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Comprehensive income attributed to Vector Group Ltd. | 56,730 | 83,246 | 68,195 | ||||||||
Subsidiary Guarantors | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 1,111,572 | 1,080,590 | 1,011,322 | ||||||||
Expenses: | |||||||||||
Cost of sales | 787,251 | 750,768 | 672,515 | ||||||||
Operating, selling, administrative and general expenses | 66,781 | 74,107 | 73,129 | ||||||||
Litigation settlement and judgment expense (income) | 685 | 6,591 | 20,000 | ||||||||
Management fee expense | 11,509 | 11,069 | 10,649 | ||||||||
Restructuring charges | 41 | ||||||||||
Operating income | 245,346 | 238,055 | 234,988 | ||||||||
Other income (expenses): | |||||||||||
Interest expense | (2,797) | (3,740) | (3,438) | ||||||||
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Equity in earnings from real estate ventures | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) from investments | 0 | (36) | (90) | ||||||||
Net losses recognized on investment securities | (4,605) | 0 | (2,632) | ||||||||
Equity in earnings in consolidated subsidiaries | 3,669 | 15,077 | 14,872 | ||||||||
Management fee income | 0 | 0 | 0 | ||||||||
Other, net | 3,608 | 2,137 | 2,174 | ||||||||
Income before provision for income taxes | 245,221 | 251,493 | 245,874 | ||||||||
Income tax benefit (expense) | (60,749) | (73,546) | (83,008) | ||||||||
Net income | 184,472 | 177,947 | 162,866 | ||||||||
Net loss (income) attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Net income attributed to Vector Group Ltd. | 184,472 | 177,947 | 162,866 | ||||||||
Comprehensive loss (income) attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Comprehensive income attributed to Vector Group Ltd. | 181,041 | 161,577 | 146,841 | ||||||||
Subsidiary Non-Guarantors | |||||||||||
Expenses: | |||||||||||
Litigation settlement and judgment expense (income) | 0 | ||||||||||
Subsidiary Non-Guarantors | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 759,168 | 727,364 | 680,105 | ||||||||
Expenses: | |||||||||||
Cost of sales | 505,233 | 477,278 | 424,829 | ||||||||
Operating, selling, administrative and general expenses | 253,878 | 228,772 | 232,444 | ||||||||
Litigation settlement and judgment expense (income) | (2,469) | 0 | |||||||||
Management fee expense | 0 | 0 | 0 | ||||||||
Restructuring charges | 0 | ||||||||||
Operating income | 2,526 | 21,314 | 22,832 | ||||||||
Other income (expenses): | |||||||||||
Interest expense | (67) | (35) | (20) | ||||||||
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Equity in earnings from real estate ventures | 14,446 | 21,395 | 5,200 | ||||||||
Equity in earnings (losses) from investments | 0 | 0 | 0 | ||||||||
Net losses recognized on investment securities | 0 | (35) | 0 | ||||||||
Equity in earnings in consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Management fee income | 0 | 0 | 0 | ||||||||
Other, net | 1,725 | 1,359 | 939 | ||||||||
Income before provision for income taxes | 18,630 | 43,998 | 28,951 | ||||||||
Income tax benefit (expense) | (3,949) | (210) | (9,335) | ||||||||
Net income | 14,681 | 43,788 | 19,616 | ||||||||
Net loss (income) attributed to non-controlling interest | 98 | (6,178) | (6,139) | ||||||||
Net income attributed to Vector Group Ltd. | 14,779 | 37,610 | 13,477 | ||||||||
Comprehensive loss (income) attributed to non-controlling interest | 98 | (6,178) | (6,139) | ||||||||
Comprehensive income attributed to Vector Group Ltd. | $ 14,779 | $ 37,610 | $ 13,477 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 181,834 | $ 131,586 | $ 97,636 |
Cash flows from investing activities: | |||
Sale of investment securities | 18,628 | 28,761 | 116,070 |
Maturities of investment securities | 24,719 | 101,097 | 10,822 |
Purchase of investment securities | (34,445) | (132,654) | (117,211) |
Proceeds from sale or liquidation of long-term investments | 19,487 | 966 | 4,552 |
Purchase of long-term investments | (415) | (32,510) | (50) |
Investments in real estate ventures | (9,728) | (38,807) | (44,107) |
Distributions from real estate ventures | 54,233 | 61,718 | 33,204 |
Increase in cash surrender value of life insurance policies | (764) | (802) | (484) |
Decrease in restricted assets | 526 | 2,250 | 410 |
Issuance of notes receivable | (450) | (1,633) | 0 |
Investments in subsidiaries | 0 | 0 | 0 |
Proceeds from sale of fixed assets | 9 | 76 | 45 |
Cash acquired in purchase of subsidiaries | 654 | ||
Purchase of subsidiaries | (10,404) | (6,569) | (250) |
Repayment of notes receivable | 67 | 0 | 4,410 |
Capital expenditures | (17,682) | (19,869) | (26,691) |
Investments in real estate, net | (2,583) | (619) | (245) |
Pay downs of investment securities | 1,611 | 2,633 | 9,212 |
Net cash provided by (used in) investing activities | 43,463 | (35,962) | (10,313) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 325,000 | 850,021 | 243,620 |
Deferred financing costs | (9,400) | (19,200) | (6,600) |
Repayments of debt | (28,689) | (837,205) | (5,365) |
Borrowings under revolver | 307,023 | 157,630 | 144,294 |
Repayments on revolver | (310,551) | (163,474) | (110,614) |
Capital contributions received | 0 | 0 | 0 |
Intercompany dividends paid | 0 | 0 | 0 |
Dividends and distributions on common stock | (225,367) | (211,488) | (198,947) |
Distributions to non-controlling interest | (2,521) | (2,779) | (11,545) |
Contributions from non-controlling interest | 0 | 0 | 248 |
Proceeds from the issuance of Vector stock | 0 | 43,230 | 0 |
Proceeds from exercise of Vector options | 0 | 0 | 398 |
Tax benefit of options exercised | 0 | 0 | 579 |
Net cash provided by (used in) financing activities | 55,495 | (183,265) | 56,068 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 280,792 | (87,641) | 143,391 |
Cash, cash equivalents and restricted cash, beginning of year | 310,937 | 398,578 | 255,187 |
Cash and cash equivalents and restricted cash, end of year | 591,729 | 310,937 | 398,578 |
Consolidating Adjustments | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (248,091) | (275,997) | (238,648) |
Cash flows from investing activities: | |||
Sale of investment securities | 0 | 0 | 0 |
Maturities of investment securities | 0 | 0 | 0 |
Purchase of investment securities | 0 | 0 | 0 |
Proceeds from sale or liquidation of long-term investments | 0 | 0 | 0 |
Purchase of long-term investments | 0 | 0 | 0 |
Investments in real estate ventures | 0 | 0 | 0 |
Distributions from real estate ventures | 0 | 0 | 0 |
Increase in cash surrender value of life insurance policies | 0 | 0 | 0 |
Decrease in restricted assets | 0 | 0 | 0 |
Issuance of notes receivable | 0 | 20,000 | |
Investments in subsidiaries | 27,224 | 38,458 | 19,219 |
Proceeds from sale of fixed assets | 0 | 0 | 0 |
Cash acquired in purchase of subsidiaries | 0 | ||
Purchase of subsidiaries | 0 | 0 | 0 |
Repayment of notes receivable | (20,000) | 0 | |
Capital expenditures | 0 | 0 | 0 |
Investments in real estate, net | 0 | 0 | 0 |
Pay downs of investment securities | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 7,224 | 58,458 | 19,219 |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 0 | (20,000) | 0 |
Deferred financing costs | 0 | 0 | 0 |
Repayments of debt | 20,000 | 0 | 0 |
Borrowings under revolver | 0 | 0 | 0 |
Repayments on revolver | 0 | 0 | 0 |
Capital contributions received | (27,224) | (38,458) | (19,219) |
Intercompany dividends paid | 248,091 | 275,997 | 238,648 |
Dividends and distributions on common stock | 0 | 0 | 0 |
Distributions to non-controlling interest | 0 | 0 | 0 |
Contributions from non-controlling interest | 0 | ||
Proceeds from the issuance of Vector stock | 0 | ||
Proceeds from exercise of Vector options | 0 | ||
Tax benefit of options exercised | |||
Net cash provided by (used in) financing activities | 240,867 | 217,539 | 219,429 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of year | 0 | 0 | 0 |
Cash and cash equivalents and restricted cash, end of year | 0 | 0 | 0 |
Parent/Issuer | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 188,568 | 177,259 | 135,820 |
Cash flows from investing activities: | |||
Sale of investment securities | 14,673 | 28,761 | 105,815 |
Maturities of investment securities | 24,719 | 101,097 | 10,822 |
Purchase of investment securities | (34,445) | (132,654) | (117,211) |
Proceeds from sale or liquidation of long-term investments | 19,487 | 500 | 4,552 |
Purchase of long-term investments | (415) | (31,650) | |
Investments in real estate ventures | 0 | 0 | 0 |
Distributions from real estate ventures | 0 | 0 | 0 |
Increase in cash surrender value of life insurance policies | (280) | (318) | 0 |
Decrease in restricted assets | 6 | 227 | (15) |
Issuance of notes receivable | 0 | (20,000) | |
Investments in subsidiaries | (17,224) | (38,458) | (19,219) |
Proceeds from sale of fixed assets | 0 | 0 | 0 |
Cash acquired in purchase of subsidiaries | 0 | ||
Purchase of subsidiaries | 0 | 0 | 0 |
Repayment of notes receivable | 20,000 | 0 | |
Capital expenditures | (22) | (35) | (86) |
Investments in real estate, net | 0 | 0 | 0 |
Pay downs of investment securities | 1,611 | 2,633 | 9,212 |
Net cash provided by (used in) investing activities | 28,110 | (89,897) | (6,130) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 325,000 | 850,000 | 243,225 |
Deferred financing costs | (9,400) | (19,200) | (6,600) |
Repayments of debt | (26,750) | (835,000) | 0 |
Borrowings under revolver | 0 | 0 | 0 |
Repayments on revolver | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Intercompany dividends paid | 0 | 0 | 0 |
Dividends and distributions on common stock | (225,367) | (211,488) | (198,947) |
Distributions to non-controlling interest | 0 | 0 | 0 |
Contributions from non-controlling interest | 0 | ||
Proceeds from the issuance of Vector stock | 43,230 | ||
Proceeds from exercise of Vector options | 398 | ||
Tax benefit of options exercised | 579 | ||
Net cash provided by (used in) financing activities | 63,483 | (172,458) | 38,655 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 280,161 | (85,096) | 168,345 |
Cash, cash equivalents and restricted cash, beginning of year | 194,719 | 279,815 | 111,470 |
Cash and cash equivalents and restricted cash, end of year | 474,880 | 194,719 | 279,815 |
Subsidiary Guarantors | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 204,638 | 171,122 | 139,824 |
Cash flows from investing activities: | |||
Sale of investment securities | 3,955 | 0 | 10,255 |
Maturities of investment securities | 0 | 0 | 0 |
Purchase of investment securities | 0 | 0 | |
Proceeds from sale or liquidation of long-term investments | 0 | 0 | 0 |
Purchase of long-term investments | 0 | 0 | 0 |
Investments in real estate ventures | 0 | 0 | 0 |
Distributions from real estate ventures | 0 | 0 | 0 |
Increase in cash surrender value of life insurance policies | (484) | (484) | (484) |
Decrease in restricted assets | 520 | 1,783 | 1,177 |
Issuance of notes receivable | 0 | 0 | |
Investments in subsidiaries | 0 | 0 | 0 |
Proceeds from sale of fixed assets | 9 | 76 | 32 |
Cash acquired in purchase of subsidiaries | 0 | ||
Purchase of subsidiaries | (10,000) | 0 | 0 |
Repayment of notes receivable | 0 | 0 | |
Capital expenditures | (4,599) | (3,705) | (6,445) |
Investments in real estate, net | 0 | 0 | 0 |
Pay downs of investment securities | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (10,599) | (2,330) | 4,535 |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 0 | 20,000 | |
Deferred financing costs | 0 | 0 | |
Repayments of debt | (21,631) | (1,882) | (5,226) |
Borrowings under revolver | 307,023 | 157,630 | 144,294 |
Repayments on revolver | (310,551) | (163,474) | (110,614) |
Capital contributions received | 10,800 | 2,400 | 2,800 |
Intercompany dividends paid | (176,006) | (182,975) | (181,709) |
Dividends and distributions on common stock | 0 | 0 | 0 |
Distributions to non-controlling interest | 0 | 0 | 0 |
Contributions from non-controlling interest | 0 | ||
Proceeds from the issuance of Vector stock | 0 | ||
Proceeds from exercise of Vector options | 0 | ||
Tax benefit of options exercised | |||
Net cash provided by (used in) financing activities | (190,365) | (168,301) | (150,455) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,674 | 491 | (6,096) |
Cash, cash equivalents and restricted cash, beginning of year | 20,175 | 19,684 | 25,780 |
Cash and cash equivalents and restricted cash, end of year | 23,849 | 20,175 | 19,684 |
Subsidiary Non-Guarantors | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 36,719 | 59,202 | 60,640 |
Cash flows from investing activities: | |||
Sale of investment securities | 0 | 0 | 0 |
Maturities of investment securities | 0 | 0 | 0 |
Purchase of investment securities | 0 | 0 | 0 |
Proceeds from sale or liquidation of long-term investments | 0 | 466 | |
Purchase of long-term investments | 0 | (860) | (50) |
Investments in real estate ventures | (9,728) | (38,807) | (44,107) |
Distributions from real estate ventures | 54,233 | 61,718 | 33,204 |
Increase in cash surrender value of life insurance policies | 0 | 0 | 0 |
Decrease in restricted assets | 0 | 240 | (752) |
Issuance of notes receivable | (450) | (1,633) | |
Investments in subsidiaries | (10,000) | 0 | 0 |
Proceeds from sale of fixed assets | 0 | 0 | 13 |
Cash acquired in purchase of subsidiaries | 654 | ||
Purchase of subsidiaries | (404) | (6,569) | (250) |
Repayment of notes receivable | 67 | 4,410 | |
Capital expenditures | (13,061) | (16,129) | (20,160) |
Investments in real estate, net | (2,583) | (619) | (245) |
Pay downs of investment securities | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 18,728 | (2,193) | (27,937) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 0 | 21 | 395 |
Deferred financing costs | 0 | 0 | 0 |
Repayments of debt | (308) | (323) | (139) |
Borrowings under revolver | 0 | 0 | 0 |
Repayments on revolver | 0 | 0 | 0 |
Capital contributions received | 16,424 | 36,058 | 16,419 |
Intercompany dividends paid | (72,085) | (93,022) | (56,939) |
Dividends and distributions on common stock | 0 | 0 | 0 |
Distributions to non-controlling interest | (2,521) | (2,779) | (11,545) |
Contributions from non-controlling interest | 248 | ||
Proceeds from the issuance of Vector stock | 0 | ||
Proceeds from exercise of Vector options | |||
Tax benefit of options exercised | 0 | ||
Net cash provided by (used in) financing activities | (58,490) | (60,045) | (51,561) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (3,043) | (3,036) | (18,858) |
Cash, cash equivalents and restricted cash, beginning of year | 96,043 | 99,079 | 117,937 |
Cash and cash equivalents and restricted cash, end of year | $ 93,000 | $ 96,043 | $ 99,079 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 9,694 | $ 11,358 | $ 12,201 |
Additions Charged to Costs and Expenses | 33,436 | 30,818 | 30,738 |
Deductions | 31,612 | 32,482 | 31,581 |
Balance at End of Period | 11,518 | 9,694 | 11,358 |
Doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 33 | 88 | 112 |
Additions Charged to Costs and Expenses | 429 | 63 | 0 |
Deductions | 13 | 118 | 24 |
Balance at End of Period | 449 | 33 | 88 |
Cash discounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 365 | 273 | 367 |
Additions Charged to Costs and Expenses | 28,154 | 27,685 | 25,237 |
Deductions | 28,202 | 27,593 | 25,331 |
Balance at End of Period | 317 | 365 | 273 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 3,664 | 4,439 | 3,900 |
Additions Charged to Costs and Expenses | 153 | 0 | 539 |
Deductions | 0 | 775 | 0 |
Balance at End of Period | 3,817 | 3,664 | 4,439 |
Sales returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 5,632 | 6,558 | 7,822 |
Additions Charged to Costs and Expenses | 4,700 | 3,070 | 4,962 |
Deductions | 3,397 | 3,996 | 6,226 |
Balance at End of Period | 6,935 | $ 5,632 | $ 6,558 |
Accounting Standards Update 2014-09 | Sales returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Additions Charged to Costs and Expenses | $ 2,525 |