Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 27, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity Registrant Name | VECTOR GROUP LTD | ||
Entity Central Index Key | 0000059440 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 1-5759 | ||
Entity Tax Identification Number | 65-0949535 | ||
Entity Address, Address Line One | 4400 Biscayne Boulevard | ||
Entity Address, City or Town | Miami | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33137 | ||
City Area Code | 305 | ||
Local Phone Number | 579-8000 | ||
Title of 12(b) Security | Common stock, par value $0.10 per share | ||
Trading Symbol | VGR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,063 | ||
Entity Common Stock, Shares Outstanding | 148,084,900 | ||
Documents Incorporated by Reference | Part III (Items 10, 11, 12, 13 and 14) from the definitive Proxy Statement for the 2020 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year covered by this report. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 371,341 | $ 584,581 |
Investment securities at fair value | 129,641 | 131,569 |
Accounts receivable - trade, net | 36,959 | 34,246 |
Inventories | 98,762 | 90,997 |
Other current assets | 44,911 | 30,828 |
Total current assets | 681,614 | 872,221 |
Property, plant and equipment, net | 82,160 | 86,736 |
Investments in real estate, net | 28,317 | 26,220 |
Long-term investments (of which $45,781 and $54,628 were carried at fair value) | 61,723 | 66,259 |
Investments in real estate ventures | 131,556 | 141,105 |
Operating lease right of use assets | 149,578 | |
Goodwill and other intangible assets, net | 265,993 | 266,611 |
Other assets | 104,148 | 90,352 |
Total assets | 1,505,089 | 1,549,504 |
Current liabilities: | ||
Current portion of notes payable and long-term debt | 209,269 | 256,134 |
Current portion of fair value of derivatives embedded within convertible debt | 4,999 | 6,635 |
Current payments due under the Master Settlement Agreement | 34,116 | 36,561 |
Current operating lease liability | 18,294 | 0 |
Income taxes payable, net | 5,138 | 5,252 |
Other current liabilities | 189,317 | 180,338 |
Total current liabilities | 461,133 | 484,920 |
Notes payable, long-term debt and other obligations, less current portion | 1,397,216 | 1,386,697 |
Fair value of derivatives embedded within convertible debt | 0 | 24,789 |
Non-current employee benefits | 67,853 | 61,288 |
Deferred income taxes, net | 33,695 | 37,411 |
Non-current operating lease liability | 156,963 | |
Payments due under the Master Settlement Agreement | 17,275 | 16,383 |
Other liabilities | 55,970 | 85,382 |
Total liabilities | 2,190,105 | 2,096,870 |
Commitments and contingencies (Notes 0 and 15) | ||
Stockholders' deficiency: | ||
Preferred stock, par value $1 per share, 10,000,000 shares authorized | 0 | 0 |
Common stock, par value $0.1 per share, 250,000,000 shares authorized, 148,084,900 and 140,914,642 shares issued and outstanding | 14,808 | 14,092 |
Accumulated deficit | (678,464) | (542,169) |
Accumulated other comprehensive loss | (21,808) | (19,982) |
Total Vector Group Ltd. stockholders' deficiency | (685,464) | (548,059) |
Non-controlling interest | 448 | 693 |
Total stockholders' deficiency | (685,016) | (547,366) |
Total liabilities and stockholders' deficiency | $ 1,505,089 | $ 1,549,504 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Long-term investments, fair value | $ 45,781 | $ 54,628 |
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) | 148,084,900 | 140,914,642 |
Common stock, shares outstanding (in shares) | 148,084,900 | 140,914,642 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues: | ||||
Total revenues | $ 1,903,711 | $ 1,870,262 | $ 1,807,476 | |
Cost of sales: | ||||
Total cost of sales | 1,301,579 | 1,292,484 | 1,228,046 | |
Operating, selling, administrative and general expenses | 370,007 | 355,513 | 337,191 | |
Litigation settlement and judgment expense (income) | 990 | (1,784) | 6,591 | |
Operating income | 231,135 | 224,049 | 235,648 | |
Other income (expenses): | ||||
Interest expense | (138,448) | (203,780) | (173,685) | |
Loss on extinguishment of debt | (4,301) | (4,066) | (34,110) | |
Change in fair value of derivatives embedded within convertible debt | 26,425 | 44,989 | 35,919 | |
Equity in (losses) earnings from real estate ventures | (19,288) | 14,446 | 21,395 | |
Other, net | 38,305 | 3,921 | 4,001 | |
Income before provision for income taxes | 133,828 | 79,559 | 89,168 | |
Income tax expense (benefit) | 32,813 | 21,552 | (1,582) | |
Net income | 101,015 | 58,007 | 90,750 | |
Net (income) loss attributed to non-controlling interest | (41) | 98 | (6,178) | |
Net income attributed to Vector Group Ltd. | $ 100,974 | $ 58,105 | $ 84,572 | |
Per basic common share: | ||||
Net income applicable to common share attributed to Vector Group Ltd. (in dollars per share) | $ 0.64 | $ 0.35 | $ 0.54 | |
Per diluted common share: | ||||
Net income applicable to common share attributed to Vector Group Ltd. (in dollars per share) | $ 0.63 | $ 0.35 | $ 0.54 | |
Tobacco | ||||
Revenues: | ||||
Total revenues | [1] | $ 1,114,840 | $ 1,111,094 | $ 1,080,950 |
Cost of sales: | ||||
Total cost of sales | [1] | 771,130 | 787,251 | 750,768 |
Litigation settlement and judgment expense (income) | 990 | 685 | 6,591 | |
Real Estate | ||||
Revenues: | ||||
Total revenues | 788,871 | 759,168 | 727,364 | |
Cost of sales: | ||||
Total cost of sales | 530,449 | 505,233 | 477,278 | |
Corporate and other | ||||
Revenues: | ||||
Total revenues | $ 0 | $ 0 | $ (838) | |
[1] | Revenues and cost of sales include federal excise taxes of $451,256 , $469,836 and $460,561 for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Tax portion of revenues and cost of goods sold | $ 451,256 | $ 469,836 | $ 460,561 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 101,015 | $ 58,007 | $ 90,750 |
Net unrealized gains (losses) on investment securities available for sale: | |||
Change in net unrealized gains (losses) | 681 | (1,056) | (6,655) |
Net unrealized (gains) losses reclassified into net income | (118) | 1,121 | 296 |
Net unrealized gains (losses) on investment securities available for sale | 563 | 65 | (6,359) |
Net change in forward contracts | 0 | 0 | 2 |
Net change in pension-related amounts | |||
Amortization of prior service costs | (33) | 0 | 0 |
Net gain (loss) arising during the year | 1,454 | (3,723) | 1,768 |
Amortization of loss | 1,961 | 1,763 | 1,955 |
Net change in pension-related amounts | 3,382 | (1,960) | 3,723 |
Other comprehensive income (loss) | 3,945 | (1,895) | (2,634) |
Income tax effect on: | |||
Change in net unrealized gains (losses) on investment securities | (187) | 290 | 2,707 |
Net unrealized (gains) losses reclassified into net income on investment securities | 32 | (308) | (120) |
Pension-related amounts | (919) | 538 | (1,279) |
Income tax (provision) benefit on other comprehensive income (loss) | (1,074) | 520 | 1,308 |
Other comprehensive income (loss), net of tax | 2,871 | (1,375) | (1,326) |
Comprehensive income | 103,886 | 56,632 | 89,424 |
Comprehensive (income) loss attributed to non-controlling interest | (41) | 98 | (6,178) |
Comprehensive income attributed to Vector Group Ltd. | $ 103,845 | $ 56,730 | $ 83,246 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Deficiency - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance (in shares) | 140,914,642 | 140,914,642 | |||||
Beginning Balance | $ (547,366) | $ (331,760) | $ (547,366) | $ (331,760) | $ (253,272) | ||
Impact of adoption of new accounting standards | (1,550) | (4,576) | |||||
Net income | $ 10,667 | $ 15,033 | $ 20,319 | $ 3,664 | 101,015 | 58,007 | 90,750 |
Total other comprehensive loss | 2,871 | (1,375) | (1,326) | ||||
Distributions and dividends on common stock | (237,339) | (226,283) | (215,182) | ||||
Restricted stock grant | 0 | 0 | |||||
Surrender of shares in connection with restricted stock vesting | (2,174) | (3,656) | (4,100) | ||||
Surrender of shares in connection with stock option exercise | (19,058) | ||||||
Effect of stock dividend | $ 0 | $ 0 | 0 | ||||
Cancellation of shares under share lending agreement | $ 0 | ||||||
Exercise of stock options (in shares) | 1,824,351 | 0 | 0 | ||||
Exercise of stock options | $ 15,817 | ||||||
Issuance of common stock | $ 43,230 | ||||||
Stock-based compensation | 9,469 | $ 9,951 | 10,887 | ||||
Acquisition of Douglas Elliman Realty, LLC | (45,153) | ||||||
Basis adjustment on non-controlling interest | (6,415) | ||||||
Distributions to non-controlling interest | $ (286) | $ (2,521) | (2,747) | ||||
Ending Balance (in shares) | 148,084,900 | 140,914,642 | 148,084,900 | 140,914,642 | |||
Ending Balance | $ (685,016) | $ (547,366) | $ (685,016) | $ (547,366) | $ (331,760) | ||
Common Stock | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance (in shares) | 140,914,642 | 134,365,424 | 140,914,642 | 134,365,424 | 127,739,481 | ||
Beginning Balance | $ 14,092 | $ 13,437 | $ 14,092 | $ 13,437 | $ 12,774 | ||
Restricted stock grant (in shares) | 60,000 | 31,666 | |||||
Restricted stock grant | $ 6 | $ 3 | |||||
Surrender of shares in connection with restricted stock vesting (in shares) | (221,668) | (192,119) | (191,967) | ||||
Surrender of shares in connection with restricted stock vesting | $ (22) | $ (19) | $ (19) | ||||
Surrender of shares in connection with stock option exercise (in shares) | (1,529,512) | ||||||
Surrender of shares in connection with stock option exercise | $ (153) | ||||||
Effect of stock dividend (in shares) | 7,037,087 | 6,709,671 | 6,436,512 | ||||
Effect of stock dividend | $ 703 | $ 671 | $ 644 | ||||
Cancellation of shares under share lending agreement (in shares) | (1,618,602) | ||||||
Cancellation of shares under share lending agreement | $ (162) | ||||||
Exercise of stock options (in shares) | 1,824,351 | ||||||
Exercise of stock options | $ 182 | ||||||
Issuance of common stock (in shares) | 2,000,000 | ||||||
Issuance of common stock | $ 200 | ||||||
Ending Balance (in shares) | 148,084,900 | 140,914,642 | 148,084,900 | 140,914,642 | 134,365,424 | ||
Ending Balance | $ 14,808 | $ 14,092 | $ 14,808 | $ 14,092 | $ 13,437 | ||
Additional Paid-in Capital | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | 0 | 0 | 0 | 0 | 0 | ||
Distributions and dividends on common stock | (4,041) | (6,311) | (49,998) | ||||
Restricted stock grant | (6) | (3) | |||||
Surrender of shares in connection with restricted stock vesting | (2,152) | (3,637) | (4,081) | ||||
Surrender of shares in connection with stock option exercise | (18,905) | ||||||
Cancellation of shares under share lending agreement | 162 | ||||||
Exercise of stock options | 15,635 | ||||||
Issuance of common stock | 43,030 | ||||||
Stock-based compensation | 9,469 | 9,951 | 10,887 | ||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | ||
Accumulated Deficit | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | (542,169) | (414,785) | (542,169) | (414,785) | (333,529) | ||
Impact of adoption of new accounting standards | 3,147 | 6,354 | |||||
Net income | 100,974 | 58,105 | 84,572 | ||||
Distributions and dividends on common stock | (233,298) | (219,972) | (165,184) | ||||
Effect of stock dividend | (703) | (671) | (644) | ||||
Acquisition of Douglas Elliman Realty, LLC | 28,800 | ||||||
Basis adjustment on non-controlling interest | (6,415) | ||||||
Ending Balance | (678,464) | (542,169) | (678,464) | (542,169) | (414,785) | ||
Accumulated Other Comprehensive Income | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | (19,982) | (12,571) | (19,982) | (12,571) | (11,245) | ||
Impact of adoption of new accounting standards | (4,697) | (6,036) | |||||
Total other comprehensive loss | 2,871 | (1,375) | (1,326) | ||||
Ending Balance | (21,808) | (19,982) | (21,808) | (19,982) | (12,571) | ||
Non-controlling Interest | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | $ 693 | $ 82,159 | 693 | 82,159 | 78,728 | ||
Impact of adoption of new accounting standards | (4,894) | ||||||
Net income | 41 | (98) | 6,178 | ||||
Acquisition of Douglas Elliman Realty, LLC | (73,953) | ||||||
Distributions to non-controlling interest | (286) | (2,521) | (2,747) | ||||
Ending Balance | $ 448 | $ 693 | $ 448 | $ 693 | $ 82,159 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Deficiency (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 101,015 | $ 58,007 | $ 90,750 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 17,851 | 18,807 | 18,614 |
Non-cash stock-based expense | 9,469 | 9,951 | 10,887 |
Loss on extinguishment of debt | 2,944 | 3,758 | 1,754 |
Loss (gain) on sale of assets | (42) | 10 | (40) |
Deferred income taxes | (11,198) | (17,635) | (33,311) |
Distributions from long-term investments | 17,940 | 1,472 | 1,436 |
Equity in (earnings) losses from long-term investments | (17,000) | (3,158) | 765 |
Net (gains) losses on investment securities | (7,440) | 9,570 | 660 |
Equity in losses (earnings) from real estate ventures | 19,288 | (14,446) | (21,395) |
Distributions from real estate ventures | 7,028 | 25,935 | 37,995 |
Non-cash interest expense | 2,052 | 52,048 | 29,620 |
Non-cash lease expense | 21,088 | 0 | 0 |
Excess tax benefit of stock compensation | 1,488 | 18,412 | 1,143 |
Impairment of long-term investments | 0 | 0 | 50 |
Changes in assets and liabilities: | |||
Receivables | (7,950) | (13,372) | (17,492) |
Inventories | (7,767) | (1,207) | 43 |
Accounts payable and accrued liabilities | (3,983) | 4,443 | 14,218 |
Payments due under the Master Settlement Agreement | (1,553) | 19,081 | (4,679) |
Other assets and liabilities, net | (19,159) | 10,158 | 568 |
Net cash provided by operating activities | 124,071 | 181,834 | 131,586 |
Cash flows from investing activities: | |||
Sale of investment securities | 21,879 | 18,628 | 28,761 |
Maturities of investment securities | 68,859 | 24,719 | 101,097 |
Purchase of investment securities | (87,766) | (34,445) | (132,654) |
Proceeds from sale or liquidation of long-term investments | 8,256 | 19,487 | 966 |
Purchase of long-term investments | (9,223) | (415) | (32,510) |
Decrease in restricted assets | 994 | 526 | 2,250 |
Investments in real estate ventures | (52,529) | (9,728) | (38,807) |
Distributions from investments in real estate ventures | 41,300 | 54,233 | 61,718 |
Issuance of notes receivable | 0 | (450) | (1,633) |
Cash acquired in purchase of subsidiaries | 0 | 654 | 0 |
Proceeds from sale of fixed assets | 17 | 9 | 76 |
Capital expenditures | (12,575) | (17,682) | (19,869) |
Increase in cash surrender value of life insurance policies | (719) | (764) | (802) |
Purchase of subsidiaries | (380) | (10,404) | (6,569) |
Repayments of notes receivable | 0 | 67 | 0 |
Pay downs of investment securities | 1,083 | 1,611 | 2,633 |
Investments in real estate, net | (2,295) | (2,583) | (619) |
Net cash (used in) provided by investing activities | (23,099) | 43,463 | (35,962) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 230,000 | 325,000 | 850,021 |
Repayments of debt | (293,419) | (28,689) | (837,205) |
Deferred financing costs | (9,802) | (9,400) | (19,200) |
Borrowings under revolver | 243,688 | 307,023 | 157,630 |
Repayments on revolver | (239,526) | (310,551) | (163,474) |
Dividends and distributions on common stock | (238,249) | (225,367) | (211,488) |
Distributions to non-controlling interest | (286) | (2,521) | (2,779) |
Proceeds from the issuance of Vector stock | 0 | 0 | 43,230 |
Tax withholdings related to net share settlements of stock option exercise | (5,415) | 0 | 0 |
Other | (216) | 0 | 0 |
Net cash (used in) provided by financing activities | (313,225) | 55,495 | (183,265) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (212,253) | 280,792 | (87,641) |
Cash, cash equivalents and restricted cash, beginning of year | 591,729 | 310,937 | 398,578 |
Cash and cash equivalents and restricted cash, end of year | $ 379,476 | $ 591,729 | $ 310,937 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 are uninsured. (d) Reconciliation of Cash, Cash Equivalents and Restricted Cash : Restricted cash amounts included in other current assets and other 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 $ 371,341 $ 584,581 $ 301,353 Restricted cash and cash equivalents included in other current assets 4,423 2,697 9,081 Restricted cash and cash equivalents included in other assets 3,712 4,451 503 Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows $ 379,476 $ 591,729 $ 310,937 (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. The Company classifies investments in marketable equity securities as equity securities at fair value. The Company’s marketable equity securities are 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 17% and 12% of Liggett’s revenues in 2019 , 18% and 12% in 2018 , and 18% and 13% in 2017 . 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 2% and 4% , respectively, of Liggett’s net accounts receivable at December 31, 2019 , and 11% and 4% , respectively, at December 31, 2018 . 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 $993 and $766 at December 31, 2019 and 2018 , 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 are 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 investments that are 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 investments 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) Leases : The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and lease liabilities on the Company’s 2019 balance sheet. Finance leases are included in investments in real estate, net, property, plant and equipment and current and long-term portions of notes payable and long-term debt on the Company’s balance sheets. ROU assets represent the Company’s right to use an underlying asset for the duration of the lease term. Lease liabilities represent the Company’s obligation to make lease payments as determined by the lease agreement. Lease liabilities are recorded at commencement for the net present value of future lease payments over the lease term. The discount rate used is generally the Company’s estimated incremental borrowing rate unless the lessor’s implicit rate is readily determinable. Discount rates are calculated periodically to estimate the rate the Company would pay to borrow the funds necessary to obtain an asset of similar value, over a similar term, with a similar security. ROU assets are recorded and recognized at commencement for the lease liability amount, initial direct costs incurred and is reduced for lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease cost is recognized on a straight-line basis over the shorter of the useful life of the asset and the lease term. The Company has lease agreements with lease and non-lease components; the Company has elected the accounting policy to combine lease and non-lease components for all underlying asset classes. (n) 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 ). (o) 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 ( $8,967 , $8,696 and $7,655 , net of income taxes, for the years ended December 31, 2019 , 2018 and 2017 , respectively), which are included as “Distributions and dividends on common stock” in the Company’s consolidated statement of stockholders’ deficiency. (p) 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. (q) 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. (r) 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 $5,802 in 2019 , $5,658 in 2018 and $5,012 in 2017 . Shipping and handling costs related to sales transactions were part of cost of sales in 2019 and 2018 after the adoption of Topic 606. The 2017 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 when 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. (s) Advertising : Tobacco advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $3,751 , $3,672 and $3,712 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Real estate advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $22,917 , $23,424 and $19,412 for the years ended December 31, 2019 and 2018 and 2017 , respectively. (t) 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 $200, $60, and $3,687, respectively $ 530 $ 108 $ 6,097 Pension-related amounts, net of income taxes of $8,120, $13,750, and $13,212, respectively (22,338 ) (20,090 ) (18,668 ) Accumulated other comprehensive loss $ (21,808 ) $ (19,982 ) $ (12,571 ) (u) 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, 2019 , the range of estimated fair market values of the Company’s embedded derivatives was between $4,993 and $5,005 . The Company recorded the fair market value of its embedded derivatives at the approximate midpoint of the range at $4,999 as of December 31, 2019 . 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 midpoint of the range at $31,424 as of December 31, 2018 . The estimated fair market value of the Company’s embedded derivatives could change significantly based on future market conditions. (See Note 11 ). (v) 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. (w) Other, Net : Other, net consisted of: Year Ended December 31, 2019 2018 2017 Interest and dividend income $ 12,590 $ 11,349 $ 7,391 Equity in earnings (losses) from investments 17,000 3,158 (765 ) Net gains (losses) recognized on investment securities 7,440 (9,570 ) (296 ) Net periodic benefit cost other than the service costs (2,298 ) (1,020 ) (1,960 ) Other income (expense) 3,573 4 (369 ) Other, net $ 38,305 $ 3,921 $ 4,001 (x) Other Current Liabilities : Other current liabilities consisted of: December 31, 2019 December 31, 2018 Accounts payable $ 10,222 $ 13,144 Accrued promotional expenses 35,900 37,940 Accrued excise and payroll taxes payable, net 18,653 14,612 Accrued interest 35,756 38,673 Commissions payable 18,378 12,975 Accrued salaries and benefits 29,464 30,228 Allowance for sales returns 7,785 6,935 Other current liabilities 33,159 25,831 Total other current liabilities $ 189,317 $ 180,338 (y) New Accounting Pronouncements : Accounting Standards Updates (“ASU”) adopted in 2019 : 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 was effective for the Company’s fiscal year beginning January 1, 2019 and subsequent interim periods. 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 stakehold |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenue Recognition Policies 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. Revenue is measured based on a consideration specified in a contract with a customer less 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: Revenue from cigarette sales, which include federal excise taxes billed to customers, is 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 a liability 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 consolidated balance sheet. The liability 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 consolidated balance sheet. The Company accounts for shipping and handling costs as fulfillment costs as part of cost of sales. Real estate sales: Real estate commissions earned by the Company’s real estate brokerage businesses are recognized as revenue when 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 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. The Company applies the optional exemption in paragraph 606-10-50-14A of Topic 606, and does not disclose 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. 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 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 at the time of the completed sale of each unit. 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 in the subject property and expensing these costs as each unit sold is closed over the contract. Commission 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. 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. The Company applies the optional exemption in paragraph 606-10-50-14 of Topic 606, and does not disclose 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. 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 is completed, which is when the performance obligation is satisfied. Disaggregation of Revenue In the following table, revenue is disaggregated by major product line for the Tobacco segment: Year Ended December 31, 2019 2018 2017 Tobacco Segment Revenues: Core Discount Brands - EAGLE 20’s, PYRAMID, GRAND PRIX, LIGGETT SELECT and EVE $ 1,008,050 $ 1,005,071 $ 969,796 Other Brands 106,790 106,023 111,154 Total tobacco revenues $ 1,114,840 $ 1,111,094 $ 1,080,950 In the following table, revenue is disaggregated by major services line and primary geographical market for the Real Estate segment: Year Ended December 31, 2019 Total New York City Northeast Southeast West Real Estate Segment Revenues : Commission brokerage income $ 669,489 $ 293,009 $ 164,724 $ 106,587 $ 105,169 Development marketing 72,925 48,850 — 19,594 4,481 Property management revenue 35,461 34,741 720 — — Title fees 6,233 — 6,233 — — Total Douglas Elliman revenue 784,108 376,600 171,677 126,181 109,650 Other real estate revenues 4,763 — — — 4,763 Total real estate revenues $ 788,871 $ 376,600 $ 171,677 $ 126,181 $ 114,413 Year Ended December 31, 2018 Total New York City Northeast Southeast West Real Estate Segment Revenues : Commission brokerage income $ 651,171 $ 285,325 $ 166,100 $ 99,720 $ 100,026 Development marketing 64,287 48,072 252 15,068 895 Property management revenue 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 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 revenue 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 Contract Balances The following table provides information about contract assets and contract liabilities from development marketing and commercial leasing contracts with customers: December 31, 2019 December 31, 2018 Receivables, which are included in accounts receivable - trade, net $ 2,129 $ 2,050 Contract assets, net, which are included in other current assets 8,766 9,264 Payables, which are included in other current liabilities 1,663 1,082 Contract liabilities, which are included in other current liabilities 9,358 7,071 Contract assets, net, which are included in other assets 18,443 15,794 Contract liabilities, which are included in other liabilities 29,045 30,445 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 and are expected to be received and paid in the next twelve months. Receivables increased $79 for the twelve -month period ended December 31, 2019 primarily due to revenue accrued as performance obligations are satisfied of $3,522 , offset by cash collections. Correspondingly, payables increased $581 primarily due to additional expense accruals as performance obligations are satisfied of $2,570 , offset by cash payments. Contract assets increased by $2,151 during the year ended December 31, 2019 due to $18,213 of payments made for direct fulfillment costs incurred in advance of the satisfaction of the performance obligations for Real Estate development marketing contracts, offset by costs recognized for units closed during the quarter. 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, 2019 , the Company estimates approximately $9,358 of contract liabilities will be recognized as revenue within the next twelve months. Contract liabilities increased by $887 during the year ended December 31, 2019 due to $21,102 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 December 31, 2018 was $14,973 . 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, 2019 , there was no |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , September 27, 2018 and September 28, 2017. 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 $703 in 2019 , $671 in 2018 and $644 in 2017 , 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, 2019 , 2018 and 2017 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 ( $8,967 , net of income taxes of $0 , $8,696 , net of income taxes of $0 , and $7,655 , net of income taxes of $0 , for the years ended December 31, 2019 , 2018 and 2017 , respectively) on these options as reductions in additional paid-in-capital on the Company’s consolidated balance sheet. For the years ended December 31, 2019 and 2018 , 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, 2019 , 2018 and 2017 , respectively, the Company has adjusted its net income for the effect of these participating securities as follows: For the year ended December 31, 2019 2018 2017 Net income attributed to Vector Group Ltd. $ 100,974 $ 58,105 $ 84,572 Income attributable to participating securities (7,464 ) (7,016 ) (6,071 ) Net income available to common stockholders attributed to Vector Group Ltd. $ 93,510 $ 51,089 $ 78,501 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. Net income for purposes of determining diluted EPS was as follows: For the year ended December 31, 2019 2018 2017 Net income attributed to Vector Group Ltd. $ 100,974 $ 58,105 $ 84,572 Income attributable to 7.5% Variable Interest Senior Convertible Notes (1,255 ) — — Income attributable to participating securities (7,464 ) (7,016 ) (6,071 ) Net income available to common stockholders attributed to Vector Group Ltd. $ 92,255 $ 51,089 $ 78,501 Basic and diluted EPS were calculated using the following common shares for the years ended December 31, 2019 , 2018 and 2017 : For the year ended December 31, 2019 2018 2017 Weighted-average shares for basic EPS 146,633,036 146,362,270 145,987,002 Plus incremental shares related to convertible debt 718,918 — — Plus incremental shares related to stock options and non-vested restricted stock 16,509 122,542 284,817 Weighted-average shares for diluted EPS 147,368,463 146,484,812 146,271,819 The following non-vested restricted stock and shares issuable upon the conversion of convertible debt were outstanding during the years ended December 31, 2019 , 2018 and 2017 , but were not included in the computation of diluted EPS because the impact of common shares issuable under the convertible debt were anti-dilutive to EPS. Year Ended December 31, 2019 2018 2017 Weighted-average shares of non-vested restricted stock 1,207,366 — — Weighted-average expense per share $ 17.97 $ — $ — Weighted-average number of shares issuable upon conversion of debt 11,118,139 30,212,414 30,260,607 Weighted-average conversion price $ 20.27 $ 16.14 $ 16.15 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES Leasing Accounting Pronouncement Adoption On January 1, 2019, the Company adopted ASU No. 2016-02 - Leases (Topic 842) applying the modified retrospective method and the option presented under ASU 2018-11 to transition only active leases as of January 1, 2019 with a cumulative effect adjustment as of that date. All comparative periods prior to January 1, 2019 retain the financial reporting and disclosure requirements of ASC 840. The Company elected the package of practical expedients permitted under the transition guidance within the new standard. The package of three expedients includes: 1) the ability to carry forward the historical lease classification, 2) the elimination of the requirement to reassess whether existing or expired agreements contain leases, and 3) the elimination of the requirement to reassess initial direct costs. The Company also elected the practical expedient related to short-term leases without purchase options reasonably certain to exercise, allowing it to exclude leases with terms of less than twelve (12) months from capitalization for all asset classes. The Company did not elect the hindsight practical expedient when determining the lease terms. The adoption of the new standard resulted in the recording of ROU assets and lease liabilities of $128,890 and $153,676 , respectively, as of January 1, 2019. The difference between the ROU assets and lease liabilities reflects the reclassification of historical deferred rent balances of approximately $22,881 , and tenant improvement receivable of $355 as adjustments to the ROU asset balances, and an adjustment that increased accumulated deficit by $1,550 to recognize the impairment in ROU assets for asset groups previously identified as being impaired. The standard did not materially impact the Company’s consolidated net earnings and had no impact on cash flows. The new standard had no material impact on liquidity and had no impact on the Company’s debt-covenant compliance under its current debt agreements. Leases The Company has operating and finance leases for corporate and sales offices, and certain vehicles and equipment. The leases have remaining lease terms of one year to 14 years , some of which include options to extend for up to five years , and some of which include options to terminate the leases within one year . However, the Company in general is not reasonably certain to exercise options to renew or terminate, and therefore renewal and termination options are not considered in the lease term or the ROU asset and lease liability balances. The Company’s lease population includes purchase options on equipment leases that are included in the lease payments when reasonably certain to be exercised. The Company’s lease population does not include any residual value guarantees. The Company’s lease population does not contain any material restrictive covenants. The Company has leases with variable payments, most commonly in the form of Common Area Maintenance (“CAM”) and tax charges which are based on actual costs incurred. These variable payments were excluded from the ROU asset and lease liability balances since they are not fixed or in-substance fixed payments. Variable payments are expensed as incurred. The components of lease expense were as follows: Year Ended December 31, 2019 Operating lease cost $ 37,817 Short-term lease cost 1,379 Variable lease cost 3,149 Finance lease cost: Amortization 224 Interest on lease liabilities 15 Total lease cost $ 42,584 Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 37,684 Operating cash flows from finance leases 15 Financing cash flows from finance leases 217 Right-of-use assets obtained in exchange for lease obligations: Operating leases 41,776 Finance leases 159 Rent expense for the year ended December 31, 2019 consisted of $21,088 of amortization and impairment of ROU assets and $17,489 of lease expense for interest accretion on operating lease liabilities. Supplemental balance sheet information related to leases was as follows: December 31, 2019 Operating leases: Operating lease right-of-use assets $ 149,578 Current operating lease liability $ 18,294 Non-current operating lease liability 156,963 Total operating lease liabilities $ 175,257 Finance leases: Investments in real estate, net $ 88 (1) Property, plant and equipment, at cost $ 127 Accumulated amortization (19 ) Property and equipment, net $ 108 Current portion of notes payable and long-term debt $ 86 Notes payable, long-term debt and other obligations, less current portion 108 Total finance lease liabilities $ 194 Weighted average remaining lease term in years: Operating leases 8.46 Finance leases 3.01 Weighted average discount rate: Operating leases 10.75 % Finance leases 8.61 % (1) Included in Investments in real estate, net on the consolidated balance sheet are finance lease equipment, at a cost of $762 and accumulated amortization of $674 as of December 31, 2019 . As of December 31, 2019 , maturities of lease liabilities were as follows: Operating Leases Finance Leases Year Ending December 31: 2020 $ 36,611 $ 98 2021 35,453 44 2022 32,943 39 2023 30,866 31 2024 25,415 8 Thereafter 117,040 — Total lease payments 278,328 220 Less imputed interest (103,071 ) (26 ) Total $ 175,257 $ 194 Under ASC 840, Leases , future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows: Lease Commitments Sublease Rentals Net Year Ending December 31: 2020 $ 35,973 $ 69 $ 35,904 2021 29,917 — 29,917 2022 27,592 — 27,592 2023 25,185 — 25,185 2024 23,589 — 23,589 Thereafter 104,126 — 104,126 Total $ 246,382 $ 69 $ 246,313 The Company has one lease for office space wherein the lessor is an affiliate of a significant shareholder of the Company. This lease represents $1,288 of the ROU asset balances and $1,351 of lease liability balances as of December 31, 2019 . The rent expense for this lease was approximately $458 for the year ended December 31, 2019 . As of December 31, 2019 , the Company did not have any operating leases for office space or equipment that have not yet commenced. The Company’s rental expense for the years ended December 31, 2019 , 2018 and 2017 was $38,577 , $38,893 and $34,858 , respectively. |
Leases | LEASES Leasing Accounting Pronouncement Adoption On January 1, 2019, the Company adopted ASU No. 2016-02 - Leases (Topic 842) applying the modified retrospective method and the option presented under ASU 2018-11 to transition only active leases as of January 1, 2019 with a cumulative effect adjustment as of that date. All comparative periods prior to January 1, 2019 retain the financial reporting and disclosure requirements of ASC 840. The Company elected the package of practical expedients permitted under the transition guidance within the new standard. The package of three expedients includes: 1) the ability to carry forward the historical lease classification, 2) the elimination of the requirement to reassess whether existing or expired agreements contain leases, and 3) the elimination of the requirement to reassess initial direct costs. The Company also elected the practical expedient related to short-term leases without purchase options reasonably certain to exercise, allowing it to exclude leases with terms of less than twelve (12) months from capitalization for all asset classes. The Company did not elect the hindsight practical expedient when determining the lease terms. The adoption of the new standard resulted in the recording of ROU assets and lease liabilities of $128,890 and $153,676 , respectively, as of January 1, 2019. The difference between the ROU assets and lease liabilities reflects the reclassification of historical deferred rent balances of approximately $22,881 , and tenant improvement receivable of $355 as adjustments to the ROU asset balances, and an adjustment that increased accumulated deficit by $1,550 to recognize the impairment in ROU assets for asset groups previously identified as being impaired. The standard did not materially impact the Company’s consolidated net earnings and had no impact on cash flows. The new standard had no material impact on liquidity and had no impact on the Company’s debt-covenant compliance under its current debt agreements. Leases The Company has operating and finance leases for corporate and sales offices, and certain vehicles and equipment. The leases have remaining lease terms of one year to 14 years , some of which include options to extend for up to five years , and some of which include options to terminate the leases within one year . However, the Company in general is not reasonably certain to exercise options to renew or terminate, and therefore renewal and termination options are not considered in the lease term or the ROU asset and lease liability balances. The Company’s lease population includes purchase options on equipment leases that are included in the lease payments when reasonably certain to be exercised. The Company’s lease population does not include any residual value guarantees. The Company’s lease population does not contain any material restrictive covenants. The Company has leases with variable payments, most commonly in the form of Common Area Maintenance (“CAM”) and tax charges which are based on actual costs incurred. These variable payments were excluded from the ROU asset and lease liability balances since they are not fixed or in-substance fixed payments. Variable payments are expensed as incurred. The components of lease expense were as follows: Year Ended December 31, 2019 Operating lease cost $ 37,817 Short-term lease cost 1,379 Variable lease cost 3,149 Finance lease cost: Amortization 224 Interest on lease liabilities 15 Total lease cost $ 42,584 Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 37,684 Operating cash flows from finance leases 15 Financing cash flows from finance leases 217 Right-of-use assets obtained in exchange for lease obligations: Operating leases 41,776 Finance leases 159 Rent expense for the year ended December 31, 2019 consisted of $21,088 of amortization and impairment of ROU assets and $17,489 of lease expense for interest accretion on operating lease liabilities. Supplemental balance sheet information related to leases was as follows: December 31, 2019 Operating leases: Operating lease right-of-use assets $ 149,578 Current operating lease liability $ 18,294 Non-current operating lease liability 156,963 Total operating lease liabilities $ 175,257 Finance leases: Investments in real estate, net $ 88 (1) Property, plant and equipment, at cost $ 127 Accumulated amortization (19 ) Property and equipment, net $ 108 Current portion of notes payable and long-term debt $ 86 Notes payable, long-term debt and other obligations, less current portion 108 Total finance lease liabilities $ 194 Weighted average remaining lease term in years: Operating leases 8.46 Finance leases 3.01 Weighted average discount rate: Operating leases 10.75 % Finance leases 8.61 % (1) Included in Investments in real estate, net on the consolidated balance sheet are finance lease equipment, at a cost of $762 and accumulated amortization of $674 as of December 31, 2019 . As of December 31, 2019 , maturities of lease liabilities were as follows: Operating Leases Finance Leases Year Ending December 31: 2020 $ 36,611 $ 98 2021 35,453 44 2022 32,943 39 2023 30,866 31 2024 25,415 8 Thereafter 117,040 — Total lease payments 278,328 220 Less imputed interest (103,071 ) (26 ) Total $ 175,257 $ 194 Under ASC 840, Leases , future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows: Lease Commitments Sublease Rentals Net Year Ending December 31: 2020 $ 35,973 $ 69 $ 35,904 2021 29,917 — 29,917 2022 27,592 — 27,592 2023 25,185 — 25,185 2024 23,589 — 23,589 Thereafter 104,126 — 104,126 Total $ 246,382 $ 69 $ 246,313 The Company has one lease for office space wherein the lessor is an affiliate of a significant shareholder of the Company. This lease represents $1,288 of the ROU asset balances and $1,351 of lease liability balances as of December 31, 2019 . The rent expense for this lease was approximately $458 for the year ended December 31, 2019 . As of December 31, 2019 , the Company did not have any operating leases for office space or equipment that have not yet commenced. The Company’s rental expense for the years ended December 31, 2019 , 2018 and 2017 was $38,577 , $38,893 and $34,858 , respectively. |
Investment Securities At Fair V
Investment Securities At Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities At Fair Value | INVESTMENT SECURITIES AT FAIR VALUE Investment securities at fair value consisted of the following: December 31, 2019 December 31, 2018 Debt securities available for sale $ 83,445 $ 84,367 Equity securities at fair value 46,196 47,202 Total investment securities at fair value $ 129,641 $ 131,569 Net gains (losses) recognized on investment securities were as follows: Year Ended December 31, 2019 2018 2017 Net gains (losses) recognized on equity securities at fair value (1) $ 7,320 $ (8,449 ) $ — Net gains (losses) recognized on debt and equity securities available for sale (2) 135 (34 ) 169 Gross realized losses on other-than-temporary impairments (3) (15 ) (1,087 ) (465 ) Net gains (losses) recognized on investment securities $ 7,440 $ (9,570 ) $ (296 ) (1) Includes net gains (losses) recognized on equity securities at fair value and net gains (losses) recognized on equity securities at fair value that qualify for the NAV practical expedient. The latter securities are included in the “Long-term investments” line item on the consolidated balance sheet and are further discussed in Note 8 . (2) Includes net gains recognized on equity securities that were classified as available for sale in 2017 . (3) Includes impairments on equity securities that were classified as equity securities available for sale in 2017 . Proceeds from sales of investment securities totaled $21,879 , $18,628 and $28,761 and proceeds from early redemptions by issuers totaled $69,943 , $26,330 and $103,730 for the years ended December 31, 2019 , 2018 and 2017 , 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, 2019 were as follows: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable debt securities $ 82,714 $ 731 $ — $ 83,445 The table below summarizes the maturity dates of debt securities available for sale at December 31, 2019 . Investment Type: Fair Value Under 1 Year 1 Year up to 5 Years More than 5 Years U.S. Government securities $ 14,660 $ 4,914 $ 9,746 $ — Corporate securities 54,413 25,824 28,589 — U.S. mortgage-backed securities 6,816 3,337 3,479 — Commercial mortgage-backed securities 382 382 — — Commercial paper 5,887 5,887 — — Index-linked U.S. bonds 779 779 — — Foreign fixed-income securities 508 — 508 — Total debt securities available for sale by maturity dates $ 83,445 $ 41,123 $ 42,322 $ — 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 There were no available-for-sale debt securities with continuous unrealized losses for less than 12 months and 12 months or greater at December 31, 2019 and 2018 , respectively. Gross realized gains and losses recognized on debt and equity securities available for sale were as follows: Year Ended December 31, 2019 2018 2017 Gross realized gains on sales $ 144 $ 4 $ 479 Gross realized losses on sales (9 ) (38 ) (310 ) Net gains (losses) recognized on debt and equity securities available for sale $ 135 $ (34 ) $ 169 Gross realized losses on other-than-temporary impairments $ (15 ) $ (1,087 ) $ (465 ) 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, 2019 December 31, 2018 Marketable equity securities $ 23,819 $ 26,010 Mutual funds invested in fixed-income securities 22,377 21,192 Total equity securities at fair value $ 46,196 $ 47,202 The following is a summary of unrealized and realized net gains (losses) recognized in net income on equity securities at fair value after the adoption of ASU 2016-01, for the years ended December 31, 2019 and 2018 , respectively: Year Ended December 31, 2019 2018 Net gains (losses) recognized on equity securities (1) $ 7,320 $ (8,449 ) Less: Net gains (losses) recognized on equity securities sold (2) 1,526 (808 ) Net unrealized gains (losses) recognized on equity securities still held at the reporting date $ 5,794 $ (7,641 ) (1) Includes $6,619 of net gains and $517 of net losses recognized on equity securities at fair value that qualify for the NAV practical expedient for the years ended December 31, 2019 and 2018 , respectively. These equity securities are included in the “Long-term investments” line item on the consolidated balance sheet and are further discussed in Note 8 . (2) Includes $1,797 and $84 of net gains recognized on sales of equity securities at fair value that qualify for the NAV practical expedient for the years ended December 31, 2019 and 2018 , respectively. These equity securities are included in the “Long-term investments” line item on the consolidated balance sheet and are further discussed in Note 8 . 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 investments in the common stock of a reinsurance company, membership units of a real estate limited liability company and membership units of a commercial real estate limited liability company at December 31, 2019 . At December 31, 2018 , the Company owned an investment in the common stock of a reinsurance company. The total carrying value of these investments was $6,200 and $5,000 and was included in “Other assets” on the consolidated balance sheet at December 31, 2019 and 2018 , respectively. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the years ended December 31, 2019 and 2018 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consist of: December 31, December 31, Leaf tobacco $ 44,516 $ 42,917 Other raw materials 4,669 3,750 Work-in-process 333 1,931 Finished goods 71,183 63,937 Inventories at current cost 120,701 112,535 LIFO adjustments (21,939 ) (21,538 ) $ 98,762 $ 90,997 All of the Company’s inventories as of December 31, 2019 and 2018 have been reported under the LIFO method. The $21,939 LIFO adjustment as of December 31, 2019 decreases the current cost of inventories by $15,210 for Leaf tobacco, $182 for Other raw materials, $24 for Work-in-process, and $6,523 for Finished goods. The $21,538 LIFO adjustment as of December 31, 2018 decreased 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. Cost of goods sold was reduced by $46 and $567 for the years ended December 31, 2019 and December 31, 2018 , 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, 2019 , Liggett had tobacco purchase commitments of approximately $20,693 . The Company has a single source supply agreement for reduced ignition propensity cigarette paper through 2022. 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 $20,472 and $16,001 as of December 31, 2019 and 2018 , respectively. Federal excise tax in inventory was $27,676 as of December 31, 2019 and $26,419 at December 31, 2018 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of: December 31, December 31, Land and improvements $ 1,624 $ 1,624 Buildings 17,733 16,919 Machinery and equipment 202,667 198,649 Leasehold improvements 52,652 51,322 274,676 268,514 Less accumulated depreciation and amortization (192,516 ) (181,778 ) $ 82,160 $ 86,736 Depreciation and amortization expense related to property, plant and equipment for the years ended December 31, 2019 , 2018 and 2017 was $24,196 , $17,506 and $17,479 , respectively. The Company, through Liggett, had future machinery and equipment purchase commitments of $276 at December 31, 2019 . |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Investments [Abstract] | |
Long-Term Investments | LONG-TERM INVESTMENTS Long-term investments consisted of the following: December 31, 2019 December 31, 2018 Equity securities at fair value that qualify for the NAV practical expedient $ 45,781 $ 54,628 Equity-method investments 15,942 11,631 $ 61,723 $ 66,259 (a) Equity Securities at Fair Value That Qualify for the NAV Practical Expedient The estimated fair value of the Company’s equity securities at fair value that qualify for the NAV practical expedient 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. In accordance with Subtopic 820-10, these investments are not classified under the fair value hierarchy disclosed in Note 18 because they are investments measured at fair value using the NAV practical expedient. The Company redeemed a portion of two of its investments that qualify for the NAV practical expedient and redeemed 100% of another investment during the year ended December 31, 2019 . The Company received cash distributions of $8,320 and recorded $8,502 of in-transit redemptions as of December 31, 2019 . The Company classified $8,256 of these distributions as investing cash inflows. The Company recognized a gain of $1,796 on its redemptions for the year ended December 31, 2019 . (b) Equity-Method Investments: Equity-method investments consisted of the following: December 31, 2019 December 31, 2018 Indian Creek Investors LP (“Indian Creek”) $ 735 $ 1,167 Boyar Value Fund (“Boyar”) 9,989 8,384 Optika Fund LLC (“Optika”) 4,785 — Ladenburg Thalmann Financial Services Inc. (“LTS”) 433 2,080 Castle Brands, Inc. (“Castle”) — — $ 15,942 $ 11,631 At December 31, 2019 , the Company’s ownership percentages in Indian Creek, Boyar, and LTS were 12.44% , 35.62% , and 10.22% , respectively. During the third quarter of 2019, the Company contributed $5,000 to Optika and its ownership percentage in the fund was 9.14% at December 31, 2019 . The Company accounted for its Indian Creek, Boyar and Optika interests as equity-method investments because the Company’s ownership percentage meets the threshold for equity-method accounting. The Company accounted for its LTS interest 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, 2019 , was $9,989 , equal to its carrying value. At December 31, 2019 , the fair value of LTS based on the quoted market price was $52,865 . The difference between the amount at which the LTS was carried and the fair value of such investment which corresponds to its share in underlying equity in net assets was $24,992 . The Company received cash distributions of $17,875 , $7,007 and $1,239 from the Company’s equity-method investments in 2019 , 2018 and 2017 , respectively. The cash distributions of $17,875 in 2019 were classified as operating cash inflows. Included as part of these distributions, the Company received $16,377 from the sale of the Company’s common shares of Castle during the year ended December 31, 2019 . Of the $7,007 , $5,535 was 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 cash distributions were classified as operating cash inflows. The Company recognized equity in earnings from equity-method investments of $17,000 and $3,158 for the years ended December 31, 2019 and 2018 , respectively, and equity in losses from equity-method investments of $765 for the year ended December 31, 2017 . On October 9, 2019, Castle was acquired pursuant to a cash tender offer of $1.27 per outstanding Common Share and, in connection therewith, the Company tendered the entire amount of its 12,895,017 common shares of Castle. The Company received and recognized a gain of $16,377 from the transaction. At the closing of the transaction, the Company’s Executive Vice President resigned as President and Chief Executive Officer of Castle, and the Company’s management agreement with Castle was terminated. On November 11, 2019, LTS entered into an Agreement and Plan of Merger with Advisor Group whereby each LTS common share was converted into the right to receive $3.50 per common share. On February 14, 2020, the merger was completed and the Company received proceeds of $53,169 from the Company’s 15,191,205 common shares of LTS. The Company has also tendered 240,000 shares of LTS 8% Series A Cumulative Redeemable Preferred Stock (Liquidation Preference $25.00 Per Share) for redemption and anticipates receiving an additional $6,009 in March 2020. At the closing of the transaction, the Company’s Executive Vice President resigned as Chairman, President and Chief Executive Officer of LTS, and the Company’s management agreement with LTS was terminated. 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 and LTS 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 estimated fair value of the Company’s investments in Indian Creek and Optika 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 investments are illiquid and their ultimate realization is subject to the performance of the underlying partnership and their management by the general partners. In accordance with Subtopic 820-10, these investments are not classified under the fair value hierarchy disclosed in Note 18 because they are investments measured at fair value using the NAV practical expedient. (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, Boyar and Optika. December 31, December 31, Investment securities $ 210,685 $ 33,830 Cash and cash equivalents 26,088 521 Other assets 1,861 33 Total assets $ 238,634 $ 34,384 Other liabilities $ 85,623 $ 738 Total liabilities 85,623 738 Partners’ capital 153,011 33,646 Total liabilities and partners’ capital $ 238,634 $ 34,384 Year Ended December 31, 2019 2018 2017 Investment income $ 2,834 $ 549 $ 792 Expenses 6,756 861 690 Net investment (loss) gain (3,922 ) (312 ) 102 Total net realized gain (loss) and net change in unrealized depreciation from investments 18,822 (5,781 ) 100 Net increase (decrease) in partners’ capital resulting from operations $ 14,900 $ (6,093 ) $ 202 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 $ 251,033 $ 262,834 Receivables from clearing brokers, note receivable and other receivable, net 175,600 165,149 Goodwill and intangible assets, net 188,975 200,199 Other assets 202,516 172,409 Total assets $ 818,124 $ 800,591 Accrued compensation, commissions and fees payable $ 142,875 $ 141,260 Accounts payable and accrued liabilities 37,197 50,122 Notes payable, net of $5,881 and $115 unamortized discount in 2019 and 2018, respectively 315,898 185,199 Other liabilities 73,380 37,658 Total liabilities 569,350 414,239 Preferred stock 2 2 Common stock 15 20 Additional paid-in capital 317,735 487,752 Accumulated deficit (68,971 ) (101,467 ) Total controlling shareholders’ equity 248,781 386,307 Non-controlling interest (7 ) 45 Total shareholders’ equity 248,774 386,352 Total liabilities and shareholders’ equity $ 818,124 $ 800,591 (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, 2019 2018 2017 Revenues $ 1,428,688 $ 1,380,031 $ 1,221,195 Expenses 1,385,699 1,345,768 1,217,331 Income before other items 42,989 34,263 3,864 Change in fair value of contingent consideration (363 ) (232 ) 48 Income from continuing operations 42,626 34,031 3,912 Net income $ 31,779 $ 30,858 $ 1,669 |
New Valley LLC
New Valley LLC | 12 Months Ended |
Dec. 31, 2019 | |
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 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. As the purchase occurred at the end of the 2018 fiscal year, there were no additional income attributable to the change in ownership in the 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 (1) December 31, 2019 December 31, 2018 Condominium and Mixed Use Development: New York City SMSA 3.1% - 49.5% $ 51,078 $ 65,007 (2) All other U.S. areas 15.0% - 77.8% 55,842 31,392 106,920 96,399 Apartment Buildings: New York City SMSA 45.4% — — (3) All other U.S. areas 7.6% - 16.3% — — — — Hotels: New York City SMSA 1.0% - 18.4% 2,462 15,782 (2) International 49.0% 2,161 2,334 4,623 18,116 Commercial: New York City SMSA 49.0% 1,852 1,867 All other U.S. areas 1.6% 7,634 7,053 9,486 8,920 Other 15.0% - 50.0% 10,527 17,670 (3) Investments in real estate ventures $ 131,556 $ 141,105 _____________________________ (1) The Range of Ownership reflects New Valley’s estimated current ownership percentage. New Valley’s actual ownership percentage as well as the percentage of earnings and cash distributions may ultimately differ as a result of a number of factors including potential dilution, financing or admission of additional partners. (2) 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 . (3) 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, 2019 December 31, 2018 Condominium and Mixed Use Development: New York City SMSA $ 21,760 $ 4,135 All other U.S. areas 29,993 — 51,753 4,135 Apartment Buildings: New York City SMSA — 975 — 975 Hotels: New York City SMSA 172 168 172 168 Other 604 4,450 Total contributions $ 52,529 $ 9,728 During the years ended December 31, 2019 and 2018 , 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, 2019 and was reduced from 24% to 18% for the year ended December 31, 2018 . 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, 2019 and 2018 . New Valley’s direct investment percentage for these ventures did not materially change. Distributions New Valley received distributions from its investments in real estate ventures as follows: December 31, 2019 December 31, 2018 Condominium and Mixed Use Development: New York City SMSA $ 7,955 $ 39,207 All other U.S. areas 1,279 — 9,234 39,207 Apartment Buildings: New York City SMSA — 27,569 All other U.S. areas 79 422 79 27,991 Hotels: New York City SMSA 21,572 1,542 International 215 220 21,787 1,762 Commercial: New York City SMSA 16 9 All other U.S. areas 250 10,139 266 10,148 Other 16,962 1,060 Total distributions $ 48,328 $ 80,168 Of the distributions received by New Valley from its investment in real estate ventures, $7,028 and $25,935 were from distributions of earnings and $41,300 and $54,233 were a return of capital for the years ended December 31, 2019 and 2018 , respectively. Equity in (Losses) Earnings from Real Estate Ventures New Valley recognized equity in (losses) earnings from real estate ventures as follows: Year Ended December 31, 2019 2018 2017 Condominium and Mixed Use Development: New York City SMSA $ (31,011 ) $ (923 ) $ 35,578 All other U.S. areas (6,467 ) (1,063 ) (2,063 ) (37,478 ) (1,986 ) 33,515 Apartment Buildings: New York City SMSA — 17,467 (6,703 ) All other U.S. areas 79 164 (532 ) 79 17,631 (7,235 ) Hotels: New York City SMSA 8,081 (2,727 ) (5,347 ) International 41 (246 ) 232 8,122 (2,973 ) (5,115 ) Commercial: New York City SMSA 1 (562 ) (742 ) All other U.S. areas 773 1,608 403 774 1,046 (339 ) Other 9,215 728 569 Total equity in (losses) earnings from real estate ventures $ (19,288 ) $ 14,446 $ 21,395 During the year ended 2019 , New Valley’s Park Lane joint venture sold 80% of its interest in the Park Lane Hotel, a Hotel located in the New York City SMS A. New Valley recognized equity in earnings of $10,328 from the sale and received distributions of $20,788 for the year ended 2019 . The sale reduced New Valley’s direct ownership percentage of the Park Lane Hotel from 5.20% to 1.04% . New Valley continues to account for its investment in the joint venture under the equity method of accounting because its ownership percentage in its direct investment continues to meet the threshold for equity method accounting. On November 1, 2019, Douglas Elliman sold its 50.0% interest in Innova Risk Management, an insurance brokerage company. Douglas Elliman received $8,732 in cash in November 2019 and may receive an additional $1,000 in a potential earn out over a period of two years. During the fourth quarter of 2018 , the Company’s New York City SMSA Apartment Building venture sold a building. The venture, with a carrying value of $1,783 , was reclassified from Apartment Buildings to Other as of December 31, 2018 . In the second quarter of 2019 , the venture sold its remaining parcel of land. The Company recognized equity in earnings from the venture of $740 and $17,467 for the years ended December 31, 2019 and 2018 , respectively, and equity in losses of $6,701 for the year ended 2017 . The Company received cash distributions of $2,524 and $27,569 from the venture for the years ended December 31, 2019 and 2018 . The Company did not receive any cash distributions from the venture in 2017 . As of December 31, 2019 , the venture had a carrying value of $0 . 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 six New York City SMSA and one All other U.S. areas Condominium and Mixed Use Development ventures were less than their carrying value for the year ended December 31, 2019 . The Company determined that the impairments were other than temporary. The Company recorded impairment charges as a component of equity in losses from real estate ventures of $39,757 of which $39,717 was attributed to the Company for the year ended December 31, 2019 . During the Company’s 2018 assessment of carrying value of its investment in real estate ventures, the Company had determined that the fair value of a New York City SMSA Condominium and Mixed Used Development venture was less than its carrying value as of December 31, 2018 . The Company determined that the impairment was other than temporary and recorded an impairment charge of $10,174 of which $8,467 was attributed to the Company for the year ended December 31, 2018 . During the Company’s 2017 assessment of carrying value of its investment in real estate ventures, the Company had determined that the fair value of 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 . As a result of the Company recording impairment charges on certain of its investments in real estate ventures, the impaired real estate ventures were carried at fair value as of the period when the impairment charge was recorded. The impaired real estate ventures were measured at fair value on a nonrecurring basis as a result of recording an other-than-temporary impairment charge. Investment in Real Estate Ventures Entered Into During 2019 In February 2019, New Valley invested $500 for an approximate 37.0% interest in 352 6th, LLC. The joint venture plans to develop a condominium complex. The venture is a VIE ; however, New Valley is not the primary beneficiary. 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 352 6th, LLC was $540 at December 31, 2019 . In April 2019, New Valley invested $10,018 for an approximate 16.9% interest in Meatpacking Plaza. The joint venture plans to construct a mixed use development. The venture is a VIE ; however, New Valley is not the primary beneficiary. 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 Meatpacking Plaza was $9,524 at December 31, 2019 . Also in April 2019, New Valley invested $5,000 for an approximate 4.9% interest in 9 DeKalb. The joint venture plans to develop a mixed use development. The venture is a VIE ; however, New Valley is not the primary beneficiary. 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 9 DeKalb was $5,334 at December 31, 2019 . In September 2019, New Valley invested $14,000 for an approximate 38.9% interest in The Park on Fifth. The joint venture plans to construct a mixed use development. The venture is a VIE; however, New Valley is not the primary beneficiary. 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 The Park on Fifth was $14,430 at December 31, 2019 . In December 2019, New Valley invested $12,522 for an approximate 77.8% interest in West Hialeah. The joint venture plans to construct a mixed use development. The venture is a VIE; however, New Valley is not the primary beneficiary. 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 West Hialeah was $12,522 at December 31, 2019 . 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 $897 and $1,387 as of December 31, 2019 and 2018 , respectively. Those assets are owned by the VIEs, not the Company. Neither of the consolidated VIEs had non-recourse liabilities as of December 31, 2019 and 2018 . 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, 2019 Condominium and Mixed Use Development: New York City SMSA $ 54,208 All other U.S. areas 55,842 110,050 Hotels: New York City SMSA 2,462 International 2,161 4,623 Commercial: New York City SMSA 1,852 All other U.S. areas 7,634 9,486 Other 24,626 Total maximum exposure to loss $ 148,785 New Valley capitalized $5,480 and $8,580 of interests costs into the carrying value of its ventures whose projects were currently under development during the years ended December 31, 2019 and December 31, 2018 , 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 $18,952 , $20,118 and $10,888 from these projects for the years ended December 31, 2019 , 2018 and 2017 , respectively. (b) 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. The Company believes that as of December 31, 2019 , 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 has executed limited recourse guarantees with a maximum exposure to New Valley of approximately $3,578 . In two projects, New Valley has additional capital commitments of $14,099 as of December 31, 2019 . The recourse guarantees and additional capital commitments are included in the calculation of New Valley’s maximum exposure to loss in the table above. (c) 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, Greenwich, 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. For the year ended December 31, 2017, 10 Madison Square West was significant enough to warrant separate disclosure. 10 Madison Square West: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 281 $ 28,539 $ 197,157 Cost of goods sold — 24,250 116,120 Other expenses (income) 8,877 (4,236 ) 11,649 (Loss) income from continuing operations $ (8,596 ) $ 8,525 $ 69,388 December 31, December 31, Balance Sheets Investment in real estate $ 4,989 $ 2,369 Total assets 15,186 15,071 Total debt 3,275 3,319 Total liabilities 3,575 3,616 Non-controlling interest 10,228 10,091 1 QPS Tower: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 386,470 $ 14,625 $ 4,216 Cost of goods sold 220,316 — — Other expenses 141,742 26,357 18,508 Income (loss) from continuing operations $ 24,412 $ (11,732 ) $ (14,292 ) December 31, December 31, Balance Sheets Investment in real estate $ — $ 215,956 Total assets — 220,350 Total debt — 209,602 Total liabilities — 212,640 Greenwich: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 5 $ 28 $ (768 ) Other expenses 6,658 146,286 2,696 Loss from continuing operations $ (6,653 ) $ (146,258 ) $ (3,464 ) December 31, December 31, Balance Sheets Investment in real estate $ 504,221 $ 403,815 Total assets 512,038 419,518 Total debt 460,124 408,779 Total liabilities 544,687 445,514 Non-controlling interest (23,942 ) (19,064 ) Other Condominium and Mixed Use Development: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 208,481 $ 365,890 $ 176,306 Cost of goods sold 76,162 71,623 93,766 Other expenses 132,931 44,211 47,590 (Loss) income from continuing operations $ (612 ) $ 250,056 $ 34,950 December 31, December 31, Balance Sheets Investment in real estate $ 3,569,915 $ 2,541,994 Total assets 3,628,402 2,701,652 Total debt 2,593,606 1,798,296 Total liabilities 2,896,607 2,036,431 Non-controlling interest 69,787 150,897 Apartment Buildings: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 70,862 $ 44,366 $ 66,588 Other expenses 67,094 105,899 64,431 Income (loss) from continuing operations $ 3,768 $ (61,533 ) $ 2,157 December 31, December 31, Balance Sheets Investment in real estate $ 545,400 $ 558,268 Total assets 562,879 574,664 Total debt 402,526 412,447 Total liabilities 410,723 420,164 Non-controlling interest 114,193 115,952 Hotels: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 147,446 $ 171,949 $ 75,862 Cost of goods sold 5,399 4,522 4,035 Other expenses 220,045 268,007 112,124 Loss from continuing operations $ (77,998 ) $ (100,580 ) $ (40,297 ) December 31, December 31, Balance Sheets Investment in real estate $ 1,017,810 $ 1,019,133 Total assets 1,133,697 1,126,598 Total debt 778,194 696,200 Total liabilities 816,118 736,101 Non-controlling interest 284,298 348,451 Commercial: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 31,980 $ 56,773 $ 6,636 Other expenses 7,724 11,647 3,294 Income from continuing operations $ 24,256 $ 45,126 $ 3,342 December 31, December 31, Balance Sheets Investment in real estate $ 52,384 $ 53,193 Total assets 70,169 70,395 Total debt 55,625 55,625 Total liabilities 54,342 54,645 Other: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 4,008 $ 4,823 $ 3,442 Other expenses 13,515 6,382 5,069 Loss income from continuing operations $ (9,507 ) $ (1,559 ) $ (1,627 ) December 31, December 31, Balance Sheets Investment in real estate $ 1,054,134 $ 710,549 Total assets 1,192,149 1,152,124 Total debt 671,845 658,592 Total liabilities 850,587 665,463 Non-controlling interest 263,438 392,933 (d) Investments in real estate, net: The components of “Investments in real estate, net” were as follows: December 31, December 31, Escena, net $ 9,972 $ 10,170 Sagaponack 18,345 16,050 Investment in real estate, net $ 28,317 $ 26,220 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 were as follows: December 31, December 31, Land and land improvements $ 8,910 $ 8,910 Building and building improvements 1,926 1,900 Other 1,659 2,162 12,495 12,972 Less accumulated depreciation (2,523 ) (2,802 ) $ 9,972 $ 10,170 The Company recorded an operating loss of $862 , $576 and $868 for the years ended December 31, 2019 , 2018 and 2017 , 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, 2019 , the assets of Sagaponack consist of land and land improvements of $18,345 . Real Estate Market Conditions. Because of the risks and uncertainties of the real estate markets, the Company will continue to perform additional assessments to determine the impact of the markets, if any, on the Company’s consolidated financial statements. Thus, future impairment charges may occur. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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 $ 78,008 $ 77,568 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 474 1,532 Total goodwill and other intangible assets, net $ 265,993 $ 266,611 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 performed the quantitative assessment for the year ended December 31, 2019 . No impairment was indicated as a result of this testing. If the Company fails to meet the financial projections used in the quantitative assessment of goodwill in future periods, this could result in an impairment charge related to the Company’s goodwill. 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 Other intangibles 1 - 5 4,689 1,724 4,689 15,168 Less: Accumulated amortization on amortizable intangibles (4,215 ) (13,636 ) Other intangibles, net $ 474 $ 1,532 Contract liabilities assumed: Unfavorable leases 1 - 10 $ — $ 4,022 Less: Accumulated amortization on unfavorable leases — (3,076 ) Unfavorable leases, net $ — $ 946 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 determined 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, 2019 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 determined using a “relief from royalty payments” method. This approach involves two steps: (i) estimating reasonable royalty rates for its 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, 2019 and no impairment was noted. In future periods if there is a decrease in the royalty rate that was used in the quantitative assessment or if the financial projections used in the quantitative assessment are not met, this could result in an impairment charge related to the Douglas Elliman trademark. As of December 31, 2019 , other intangibles with finite lives included non-compete agreements recognized in prior business combinations. Other intangibles in prior periods included backlog and listing inventory for Development sales, and favorable and unfavorable leases arising from leases with terms that are less than or greater than market value assumed in the business combination. For the years ended December 31, 2019 , 2018 , and 2017 , respectively, amortization of other intangibles were $182 , $806 and $871 . For the years ended December 31, 2018 and 2017 , respectively, $1,175 and $1,373 was taken as rent expense for amortization of favorable leases, and $369 and $502 was taken as offsets to rent expense for amortization of unfavorable leases. The Company did not recognize rent expense for amortization of favorable or unfavorable leases due to the adoption of ASU 2016-02 - Leases (Topic 842) in 2019 . |
Notes Payable, Long-Term Debt a
Notes Payable, Long-Term Debt and Other Obligations | 12 Months Ended |
Dec. 31, 2019 | |
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 consisted of: December 31, 2019 December 31, 2018 Vector: 6.125% Senior Secured Notes due 2025 $ 850,000 $ 850,000 10.5% Senior Notes due 2026, net of unamortized discount of $3,392 and $0 551,608 325,000 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $5,276 and $29,465* 164,334 202,535 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $0 and $3,359* — 226,641 Liggett: Revolving credit facility 34,952 28,381 Term loan under credit facility — 2,409 Equipment loans 347 1,039 Other 30,146 30,440 Total notes payable, long-term debt and other obligations 1,631,387 1,666,445 Less: Debt issuance costs (24,902 ) (23,614 ) Total notes payable, long-term debt and other obligations 1,606,485 1,642,831 Less: Current maturities (209,269 ) (256,134 ) Amount due after one year $ 1,397,216 $ 1,386,697 _____________________________ * The fair value of the derivatives embedded within the 5.5% Variable Interest Senior Convertible Debentures ( $4,999 at December 31, 2019 and $24,789 at December 31, 2018 , respectively) and the 7.5% Variable Interest Senior Convertible Debentures ( $6,635 at December 31, 2018 ) is separately classified as a derivative liability in the consolidated balance sheets. Senior Notes - Vector : 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 2,315,250 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 pay interest on a semi-annual basis at a rate of 6.125% per year and mature on February 1, 2025. 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, each holder of the 6.125% Senior Secured Notes may require the Company to repurchase some or all of its 6.125% Senior Secured Notes 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 at the prices listed in the indenture. The 6.125% Senior Secured 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. (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, 2019 , 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. On November 18, 2019, the Company completed the sale of an additional $230,000 principal amount of its 10.5% Senior Notes. The Company received net proceeds of approximately $220,400 after deducting underwriting discounts, commissions, fees and offering expenses. The Company intends to use the net cash proceeds from the offering to redeem, repurchase, repay or otherwise retire the Company’s outstanding 5.5% Variable Interest Senior Convertible Notes due 2020, including accrued interest thereon, at, or prior to, their maturity, to pay costs and expenses in connection with the offering of the Notes and the transactions contemplated thereby, and for general corporate purposes. After giving effect to the 2019 issuance, the Company has outstanding $555,000 aggregate principal amount of its 10.5% Senior Notes. 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. Interest on the additional notes issued will accrue from November 1, 2019. 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 days 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, 2019 , the Company was in compliance with all debt covenants. Variable Interest Senior Convertible Debt : Vector has one outstanding series of variable interest senior convertible debt. The debt pays 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 were the Company’s senior unsecured obligations and were effectively subordinated to any of its secured indebtedness to the extent of the assets securing such indebtedness. The notes matured on January 15, 2019 and the Company paid $230,000 of principal and $8,102 of accrued interest. 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 repurchased $26,750 in aggregate principal amount of its 5.5% Convertible Notes outstanding at a repurchase price of 101.15% . The Company paid $27,141 to repurchase the notes and recorded a loss of $4,066 for the early extinguishment of debt. During November 2019, the Company repurchased $62,390 in aggregate principal amount of its 5.5% Convertible Notes outstanding at a repurchase price of 102.18% . The Company paid $63,859 to repurchase the notes and recorded a loss of $4,301 for the early extinguishment of debt. During December 2019, the Company cancelled the $89,140 aggregate principal amount of its repurchased 5.5% Convertible Notes. After giving effect to the cancellation, the Company had outstanding $169,610 aggregate principal amount of its 5.5% Convertible Notes as of December 31, 2019 . The 5.5% Convertible Notes pay interest (“Total Interest”) on a quarterly basis 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 is the higher of (i) the Total Interest and (ii) 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, 2019 December 31, 2018 Conversion Price Shares per $1,000 Conversion Price Shares per $1,000 7.5% Convertible Notes $ — — $ 13.14 76.0595 5.5% Convertible Notes $ 20.27 49.3363 $ 20.27 49.3363 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 was as follows: Year Ended December 31, 2019 2018 2017 7.5% Convertible Notes $ 2,031 $ 39,845 $ 23,720 5.5% Convertible Notes 16,481 15,924 13,490 Interest expense associated with embedded derivatives $ 18,512 $ 55,769 $ 37,210 A summary of non-cash changes in fair value of derivatives embedded within convertible debt was as follows: Year Ended December 31, 2019 2018 2017 7.5% Convertible Notes $ 6,635 $ 24,530 $ 21,734 5.5% Convertible Notes 19,790 20,459 14,185 Gain on changes in fair value of derivatives embedded within convertible debt $ 26,425 $ 44,989 $ 35,919 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, 2017 $ 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 Gain from changes in fair value of embedded derivatives (6,635 ) (19,790 ) (26,425 ) Balance at December 31, 2019 $ — $ 4,999 $ 4,999 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, 2019 2018 2017 Amortization of beneficial conversion feature: 7.5% Convertible Notes $ 1,328 $ 26,049 $ 15,507 5.5% Convertible Notes 4,973 4,805 4,070 Interest expense associated with beneficial conversion feature $ 6,301 $ 30,854 $ 19,577 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, 2017 $ 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 Partial redemption of 5.5% convertible notes — (2,735 ) (2,735 ) Amortization of embedded derivatives (2,031 ) (16,481 ) (18,512 ) Amortization of beneficial conversion feature (1,328 ) (4,973 ) (6,301 ) Balance at December 31, 2019 $ — $ 5,276 $ 5,276 Revolving Credit Agreement — Liggett : In January, 2015, Liggett and 100 Maple LLC (“Maple”), a subsidiary of Liggett, entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”), with Wells Fargo Bank, National Association (“Wells Fargo”), as agent and lender. The Credit Agreement governed a $60,000 credit facility (the “Credit Facility”) that consisted of a revolving credit facility (the “Revolver”) and a $3,600 term loan (the “Term Loan”) that was within the $60,000 commitment under the Credit Facility and reduced the amount available under the Revolver. In connection with the November 2017 issuance of 6.125% Senior Secured Notes and the November 2018 issuance of 10.5% Senior Notes, Liggett and Maple entered into amendments to the Credit Agreement to update certain defined terms of the Credit Agreement relating to such issuances. On October 31, 2019, Liggett and Maple amended the Credit Agreement to, among other things, (i) extend its maturity to January 31, 2025, (ii) update the borrowing base to adjust the advance rates in respect of eligible inventory and add certain eligible real property, and (iii) reflect the repayment in full of the Term Loan. Accordingly, the Term Loan portion of the credit facility no longer exists. The $60,000 commitment available in the Credit Agreement is unchanged. As of October 31, 2019, all borrowings under the Credit Agreement are limited to a borrowing base equal to the sum of (I) the lesser of 85% of eligible trade receivables less certain reserves and $10,000 ; plus (II) 80% of the value of eligible inventory consisting of packaged cigarettes plus (III) the lesser of 65% 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 or 85% of the appraised liquidation value of eligible inventory plus (IV) 60% of the fair market value of eligible real property. The obligations under the Credit Agreement 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. The term of the Credit Agreement expires on January 31, 2025. Loans under the Credit Agreement bear interest at a rate equal to LIBOR plus 2.25% . The interest rate applicable to this Credit Agreement at December 31, 2019 was 4.01% . The Credit Agreement, as amended, permits the guaranty of the 6.125% Senior Secured Notes and the 10.5% Senior Notes by each of Liggett and Maple. Wells Fargo, Liggett, Maple and the collateral agent for the holders of the 6.125% Senior Secured Notes 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 Agreement 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, including a restriction on Liggett’s ability to pay cash dividends unless Liggett’s average borrowing availability, as defined under the Credit Agreement, 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 has occurred under the Credit Agreement, including Liggett’s compliance with the covenants in the Credit Agreement . The Credit Agreement 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 Agreement, on a trailing twelve month basis, shall not be less than $100,000 if Liggett’s excess availability, as defined under the Credit Agreement, is less than $20,000 . The covenants also require that annual capital expenditures, as defined under the Credit Agreement (before a maximum carryover amount of $10,000 ), shall not exceed $20,000 during any fiscal year. The Credit Agreement also contains customary events of default. Liggett was in compliance with these covenants as of December 31, 2019 . As of December 31, 2019 , a total of $34,952 was outstanding under the revolving portion of the Credit Agreement. Availability as determined under the Credit Agreement was approximately $25,048 based on eligible collateral at December 31, 2019 . 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 accrued at the mid-term applicable federal rate (“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 were as follows: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Senior Notes $ 1,401,608 $ 1,409,920 $ 1,175,000 $ 1,034,500 Variable Interest Senior Convertible Debt 164,334 176,289 429,176 468,704 Liggett and other 65,445 65,456 62,269 62,255 Notes payable and long-term debt $ 1,631,387 (1) $ 1,651,665 $ 1,666,445 (1) $ 1,565,459 __________ (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, 2019 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 were as follows: Principal Unamortized Discount/ (Premium) Net Year Ending December 31: 2020 $ 214,947 $ 5,276 $ 209,671 2021 10,026 — 10,026 2022 10,045 — 10,045 2023 29 — 29 2024 8 — 8 Thereafter 1,405,000 3,392 1,401,608 Total $ 1,640,055 $ 8,668 $ 1,631,387 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 , 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, 2019 , 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: 2020 – $0 ; 2021 – $7,644 ; 2022 – $0 ; 2023 – $0 ; 2024 – $51,155 and 2025 to 2029 – $0 . 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, 2019 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 126 hourly retirees, who retired prior to 1991, for Medicare Part B premiums. In addition, the Company provides life insurance benefits to approximately 101 active employees and 389 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 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation at January 1 $ (123,165 ) $ (132,722 ) $ (8,296 ) $ (8,967 ) Service cost (533 ) (587 ) (3 ) (4 ) Interest cost (4,860 ) (4,495 ) (347 ) (330 ) Plan amendment — — — (39 ) Benefits paid 7,696 8,524 594 553 Expenses paid 391 260 — — Actuarial gain (8,526 ) 5,855 (934 ) 491 Benefit obligation at December 31 $ (128,997 ) $ (123,165 ) $ (8,986 ) $ (8,296 ) Change in plan assets: Fair value of plan assets at January 1 $ 93,167 $ 106,192 $ — $ — Actual return on plan assets 15,788 (4,497 ) — — Expenses paid (391 ) (260 ) — — Contributions 183 256 594 553 Benefits paid (7,696 ) (8,524 ) (594 ) (553 ) Fair value of plan assets at December 31 $ 101,051 $ 93,167 $ — $ — Unfunded status at December 31 $ (27,946 ) $ (29,998 ) $ (8,986 ) $ (8,296 ) Amounts recognized in the consolidated balance sheets: Prepaid pension costs $ 31,686 $ 23,869 $ — $ — Other accrued liabilities (111 ) (228 ) (654 ) (647 ) Non-current employee benefit liabilities (59,521 ) (53,639 ) (8,332 ) (7,649 ) Net amounts recognized $ (27,946 ) $ (29,998 ) $ (8,986 ) $ (8,296 ) Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Service cost — benefits earned during the period $ 533 $ 587 $ 564 $ 3 $ 4 $ 5 Interest cost on projected benefit obligation 4,860 4,495 5,059 347 330 368 Expected return on assets (4,874 ) (5,572 ) (5,424 ) — — — Prior service cost — — — 4 4 — Amortization of net loss (gain) 2,001 1,804 2,009 (40 ) (41 ) (54 ) Net expense $ 2,520 $ 1,314 $ 2,208 $ 314 $ 297 $ 319 The following table summarizes amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost for the year ending 2020 . Defined Benefit Pension Plans Post- Retirement Plans Total Prior service cost $ — $ 4 $ 4 Actuarial loss $ 1,836 $ 11 $ 1,847 As of December 31, 2019 , 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, 2019 $ (34,053 ) $ 213 $ (33,840 ) Amortization of prior service costs — 4 4 Prior service costs — (37 ) (37 ) Amortization of loss (gain) 2,001 (40 ) 1,961 Net gain (loss) arising during the year 2,388 (934 ) 1,454 Accumulated other comprehensive loss as of December 31, 2019 $ (29,664 ) $ (794 ) $ (30,458 ) As of December 31, 2018 , accumulated other comprehensive (loss) income, before income taxes, consisted 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 ) $ 213 $ (33,840 ) As of December 31, 2019 , 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 $59,631 , $59,631 and $0 , respectively. 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. Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Weighted average assumptions: Discount rates — benefit obligation 2.55% - 3.1% 3.9% - 4.25% 3.25% - 3.7% 3.30% 4.35% 3.80% Discount rates — service cost 3.9% - 4.25% 3.25% - 3.7% 3.6% - 4.2% 4.35% 3.80% 4.40% Assumed rates of return on invested assets 5.50% 5.50% 5.50% 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 7.6% , 8.3% and 5.2% for the years ended December 31, 2019 , 2018 and 2017 , respectively, and the Company’s actual five -year annual rate of return on its pension plan assets was 5.41% , 3.19% and 7.28% for the years ended December 31, 2019 , 2018 and 2017 , 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, 2019 , Liggett used a 13.20 -year period for its Hourly Plan and a 12.46 -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 35.0% equity investments, 55.0% 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, 2019 2018 Asset category: Equity securities 38 % 52 % Investment grade fixed income securities 53 % 39 % 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 were as follows: Fair Value Measurements as of December 31, 2019 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 $ 2,398 $ — $ 2,398 $ — Amounts in individually managed investment accounts: Cash, mutual funds and common stock 76 76 — — Common collective trusts 38,537 — 38,537 — Common collective trusts at NAV (1) 51,068 — — — Mutual Funds 8,972 — 8,972 — Total $ 101,051 $ 76 $ 49,907 $ — (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, 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 — — Common collective trusts 48,126 — 48,126 — Common collective trusts at NAV (1) 33,731 — — — Investment Partnership 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. 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, 2019 and 2018 were as follows: 2019 2018 Balance as of January 1 $ — $ 127 Distributions — (127 ) Balance as of December 31 $ — $ — For 2019 measurement purposes, annual increases in Medicare Part B trends were assumed to equal rates between 3.95% and 8.02% between 2020 and 2027 and 4.5% thereafter. 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. 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 47 (44 ) 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, 2020 and ending on December 31, 2020 . 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 were as follows: Pension Postretirement Medical 2020 $ 7,548 $ 655 2021 14,708 651 2022 6,614 650 2023 6,200 644 2024 56,959 640 2025 - 2029 23,303 2,897 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 $1,933 , $1,793 and $1,736 for the years ended December 31, 2019 , 2018 and 2017 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The amounts provided for income taxes were as follows: Year Ended December 31, 2019 2018 2017 Current: U.S. Federal $ 33,379 $ 27,962 $ 28,271 State 10,632 11,225 3,458 $ 44,011 $ 39,187 $ 31,729 Deferred: U.S. Federal $ (7,209 ) $ (12,524 ) $ (31,049 ) State (3,989 ) (5,111 ) (2,262 ) (11,198 ) (17,635 ) (33,311 ) Total $ 32,813 $ 21,552 $ (1,582 ) The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and liabilities is as follows: December 31, 2019 December 31, 2018 Deferred tax assets: Employee benefit accruals $ 11,709 $ 12,801 Impairment of investments 9,772 4,131 Impact of timing of settlement payments 19,313 20,551 Disallowed interest expense carryforward — 1,619 Various U.S. state tax loss carryforwards 4,296 5,137 Operating lease liabilities 3,679 — Other 2,274 1,966 51,043 46,205 Less: Valuation allowance (1,292 ) (3,817 ) Net deferred tax assets $ 49,751 $ 42,388 Deferred tax liabilities: Basis differences on non-consolidated entities (1) $ (7,990 ) $ (7,752 ) Basis differences on fixed and intangible assets (35,082 ) (35,854 ) Capitalized interest expense (1) — (6,532 ) Basis differences on inventory (10,645 ) (11,497 ) Basis differences on long-term investments (22,424 ) (16,496 ) Impact of accounting for convertible debt (813 ) (385 ) Basis differences on available for sale securities (3,219 ) (1,283 ) Operating lease right of use assets (3,273 ) — $ (83,446 ) $ (79,799 ) Net deferred tax liabilities $ (33,695 ) $ (37,411 ) _____________________________ (1) The Company reclassified its capitalized interest expense to its basis differences on non-consolidated entities during the year ended December 31, 2019 . 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 $4,296 and $5,137 at December 31, 2019 and 2018 , respectively, expiring through tax year 2027 . 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 $1,292 and $3,817 at December 31, 2019 and 2018 , respectively. The valuation allowance at December 31, 2019 primarily relates to Vector Tobacco’s state and local net operating loss carryforwards. 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 was decreased in 2019 as compared to 2018 , due to the removal of the valuation allowance related to the Company’s disallowed interest expense. 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 U.S. GAAP and income tax laws. 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, 2019 2018 2017 Income before provision for income taxes $ 133,828 $ 79,559 $ 89,168 Federal income tax expense at statutory rate 28,104 16,707 31,209 Increases (decreases) resulting from: State income taxes, net of federal income tax benefits 6,430 6,060 3,833 Impact of non-controlling interest (9 ) 21 (2,162 ) Non-deductible expenses 1,385 1,993 2,146 Impact of domestic production deduction — 359 (2,960 ) Impact of Tax Cuts and Jobs Act of 2017 — (2,691 ) (28,845 ) Excess tax benefits on stock-based compensation (1,488 ) (778 ) (1,143 ) Tax credits (166 ) (127 ) (2,683 ) Other 791 (545 ) (155 ) Inclusion of tax liabilities from unincorporated entities 291 400 (47 ) Changes in valuation allowance, net of equity and tax audit adjustments (2,525 ) 153 (775 ) Income tax expense (benefit) $ 32,813 $ 21,552 $ (1,582 ) 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, 2017 $ 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 Additions based on tax positions related to prior years 1,586 Settlements — Expirations of the statute of limitations (330 ) Balance at December 31, 2019 $ 1,647 In the event the unrecognized tax benefits of $1,647 at December 31, 2019 were recognized, such recognition would impact the 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 $51 of unrecognized tax benefits over the next 12 months, primarily pertaining to expiring statutes of limitations on prior state and local income tax return positions. The Company files U.S. and state and local income tax returns in jurisdictions with varying statutes of limitations. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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 7,676,038 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 $1,923 , $2,246 and $2,207 related to stock options in the years ended December 31, 2019 , 2018 and 2017 , 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, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 Risk-free interest rate 2.5% - 2.7% 2.7% - 2.9% 2.1% - 2.4% Expected volatility 20.24% - 20.45% 19.02% - 21.05% 18.88% - 21.62% Dividend yield 0.0 % 0.0 % 0.0 % Expected holding period 4.00 – 10.00 years 5.00 – 10.00 years 6.00 – 10.00 years Weighted-average grant date fair value (1) $2.36 - $4.08 $4.62 - $7.58 $5.39 - $8.17 _____________________________ ( 1) Per share amounts have not been adjusted to give effect to the stock dividends in 2019 , 2018 and 2017 . 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, 2017 4,985,059 $ 12.10 5.3 $ 37,557 Granted 448,580 $ 19.70 Exercised — $ — Canceled (13 ) $ — Outstanding on December 31, 2017 5,433,626 $ 12.74 4.7 $ 41,069 Granted 427,219 $ 18.42 Exercised — $ — Canceled (12 ) $ — Outstanding on December 31, 2018 5,860,833 $ 13.16 4.1 $ 1,095 Granted 406,875 $ 10.92 Exercised (1,824,351 ) $ 8.67 Canceled (11 ) $ — Outstanding on December 31, 2019 4,443,346 $ 14.80 5.0 $ 4,427 Options exercisable at: December 31, 2017 3,500,201 December 31, 2018 4,019,477 December 31, 2019 2,689,673 _____________________________ (1) The aggregate intrinsic value represents the amount by which the fair value of the underlying common stock ( $13.39 , $9.27 and $20.30 at December 31, 2019 , 2018 and 2017 , respectively) exceeds the option exercise price. Additional information relating to options outstanding at December 31, 2019 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 12/31/2019 12/31/2019 $9.86 - $11.83 2,082,717 3.7 $ 11.26 1,675,842 2.4 $ 11.35 $ — $11.83 - $13.80 — 0 $ — — 0 $ — — $13.80 - $15.77 519,278 4.4 $ 14.68 519,278 4.4 $ 14.68 — $15.77 - $17.74 — 0 $ — — 0 $ — — $17.74 - $19.71 1,841,351 6.6 $ 18.84 494,553 5.2 $ 18.12 — 4,443,346 5.0 $ 14.80 2,689,673 3.3 $ 13.24 $ 4,427 As of December 31, 2019 , there was $2,657 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, 2019 . 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 2019 . The exercise price of the options granted was $10.92 in 2019 . The exercise price of the options granted in 2019 was at the fair value on the date of the grants. Non-qualified options for 427,219 shares of common stock were issued during 2018 . The exercise price of the options granted was $18.42 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 448,580 shares of common stock were issued during 2017 . The exercise price of the options granted was $19.70 in 2017 . The exercise price of the options granted in 2017 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, 2019 was $6,577 . Tax benefits related to option exercises of $363 were recorded as increases to stockholders’ deficiency for the year ended December 31, 2019 . A total of 1,824,351 options were exercised during the year ended December 31, 2019 . Restricted Stock Awards. On May 2, 2019, the Company granted 63,000 restricted shares of the Company’s common stock (the “May 2019 Grant”) pursuant to the 1999 Plan to six of its outside directors. The shares vest over a period of three years and the Company will recognize $564 of expense over the vesting period of the May 2019 grant. The Company recognized expense of $124 for the year ended December 31, 2019 . On May 29, 2018, the Company granted 27,563 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 $241 and $142 for the years ended December 31, 2019 and 2018 , respectively. Additionally, on May 29, 2018, the Company granted 7,348 restricted shares of the Company’s common stock pursuant to the 1999 Plan to two of its outside directors. The shares vested on April 25, 2019 and the Company recognized $128 of expense through the vesting date. The Company recognized expense of $46 and $82 for the years ended December 31, 2019 and 2018 , respectively. In April 2016, the Company granted 60,775 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 vested in April 2019 and the Company recognized $1,054 of expense over the vesting period of three years . The Company recognized expense of $92 , $374 and $351 for the years ended December 31, 2019 , 2018 and 2017 , respectively. On November 10, 2015, the Company granted its President and Chief Executive Officer an award of 1,458,608 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 , $4,053 and $5,275 for the years ended December 31, 2019 , 2018 and 2017 , respectively. On July 23, 2014, the Company granted its President and Chief Executive Officer an award of 1,340,096 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 for each of the years ended December 31, 2019 , 2018 and 2017 , respectively. In October 2013, the President and Chief Executive Officer of Liggett and Liggett Vector Brands was awarded a restricted stock grant of 36,853 shares of Vector’s common stock pursuant to the 1999 Plan. The shares vested on March 15, 2019, contingent upon the certification of performance-based targets being achieved by the Company’s Tobacco segment. He received dividends on the restricted shares as paid. The fair market value of the restricted shares on the date of grant was $458 and was amortized over the vesting period as a charge to compensation expense. The Company recognized expense of $21 , $85 and $85 for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , there was $15,095 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 1.30 years. As of December 31, 2018 , there was $22,077 of total unrecognized compensation costs related to unvested restricted stock awards. The Company’s accounting policy is to treat dividends paid on unvested restricted stock as a reduction to additional paid-in capital on the Company’s consolidated balance sheet. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
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 years ended December 31, 2019 , 2018 , and 2017 , Liggett incurred tobacco product liability legal expenses and costs totaling $7,363 , $7,144 , and $12,809 , 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 Condensed 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, 2019 , 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, 2019 , there were 51 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. The following table lists the number of Individual Actions by state: State Number of Cases Florida 32 Illinois 8 Nevada 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, 2019 , 25 Engle progeny cases where Liggett was a defendant at trial resulted in verdicts. There have been 16 verdicts returned in favor of the plaintiffs and nine in favor of Liggett. In five of the cases, punitive damages were awarded against Liggett. Several of the adverse verdicts were overturned on appeal and new trials were ordered. 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 Settlements. In October 2013, the Company and Liggett entered into a settlement with approximately 4,900 Engle progeny plaintiffs and their counsel. Pursuant to the terms of the settlement, Liggett agreed to pay a total of approximately $110,000 , with $61,600 paid in an initial lump sum and the balance of $48,000 to be paid in installments over 14 years starting in February 2015. In exchange, the claims of these plaintiffs were dismissed with prejudice against the Company and Liggett. 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 2016, the Company and Liggett entered into an agreement with 124 Engle progeny plaintiffs and their counsel. Pursuant to the terms of this settlement, Liggett agreed to pay $17,650 . Liggett subsequently settled an additional 28 Engle progeny cases and one Individual Action for $5,500 . As of December 31, 2019 , Liggett (and in certain cases the Company) had, on an individual basis, settled an additional 196 Engle progeny cases for approximately $8,000 in the aggregate. Nine of these settlements were paid in the fourth quarter of 2019. Notwithstanding the comprehensive nature of the Engle Progeny Settlements, 47 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 in Engle Progeny Cases . As of December 31, 2019 , 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 . An adverse verdict against Liggett for $160 in Santoro is currently on appeal. 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. 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 Actions. Class Actions As of December 31, 2019 , two 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 two cases. 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 claims arising from their exposure to cigarette smoke and asbestos fibers. The operative complaint seeks to recover unspecified compensatory and punitive damages on behalf of the putative class. The case is stayed as a result of the December 2000 bankruptcy of three of the defendants. 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 that trial. In or about 2013, after a favorable court ruling, the other cigarette manufacturers settled with plaintiffs. In May 2016 , the trial court ruled that the case could proceed against Liggett. In June 2019, Liggett settled the litigation. The settlement was approved by the court and this matter is now concluded. Health Care Cost Recovery Actions As of December 31, 2019 , 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, among other things, an unspecified amount of health care costs paid and to be paid by the federal government for smoking-related illnesses allegedly caused by the fraudulent and tortious conduct of defendants. In August 2006, the trial court entered a Final Judgment against each of the cigarette manufacturing defendants, except Liggett. The judgment was affirmed on appeal. 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. Upcoming Trials As of December 31, 2019 , there were three Individual Actions and one Engle Progeny case scheduled for trial through December 31, 2020, where Liggett (and/or the Company) is a named defendant. Trial dates are subject to change and additional 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 approximately 4.0% of the total cigarettes sold in the United States in 2019. 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 30, 2019, Liggett and Vector Tobacco pre-paid $140,000 of their approximate $171,000 2019 MSA obligation, the balance of which will be paid in April 2020, subject to 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 - 2019. 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 - 2019, 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 PMs have now settled most of the disputed NPM Adjustment years with 37 states representing approximately 75% of the MSA share. The 2004 NPM Adjustment arbitration started in 2016 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 for the year ended December 31, 2019 by $5,925 , for an aggregate reduction in costs of sales for years 2013 - 2019 of $48,032 . Liggett and Vector Tobacco may be entitled to further adjustments. As of December 31, 2019 , 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, 2019 , there remains approximately $36,300 in the disputed payments account relating to Liggett and Vector Tobacco’s 2011 - 2018 NPM Adjustment disputes with the non-settling states. If Liggett and Vector Tobacco lose the disputes for all or any of those years, pursuant to the MSA, no interest would be due on the amounts paid into the disputed payment account. 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 (the “1996 Agreement”) alleging that Liggett owes Mississippi at least $27,000 in compensatory damages and additional amounts for interest, punitive damages and attorneys’ fees. In April 2017, the Chancery Court ruled that the 1996 Agreement should be enforced and referred the matter to a Special Master for further proceedings to determine the amount of damages, if any, to be awarded. In June 2018, the Chancery Court granted Liggett’s motion to compel arbitration as to two issues concerning damages and stayed the proceedings before the Special Master pending completion of the arbitration. In March 2019, the arbitration panel issued its final arbitration award on the two issues before it: (i) the panel ruled in favor of Liggett, finding that the $294,000 of proceeds from Eve Holdings’ 1999 brand sale should not be included in Liggett’s pre-tax income; and (ii) ruled in favor of Mississippi on the remaining issue, finding that compensatory damages to Mississippi, if any, would be based on 0.5% of Liggett’s annual pre-tax income for the term of the settlement agreement. Following confirmation of the arbitration award, Mississippi voluntarily dismissed with prejudice its claims for punitive damages and attorneys’ fees. In July 2019, the parties stipulated that the unpaid principal (exclusive of interest) purportedly due from Liggett to Mississippi pursuant to the 1996 Agreement (from inception through 2019) is approximately $14,400 , subject to Liggett’s right to litigate and/or appeal the enforceability of the 1996 Agreement (and all issues other than the calculation of such principal amount). In September 2019, the Special Master held a hearing regarding the state’s claim for approximately $17,500 in prejudgment interest as well as post-judgment interest in amounts to be determined. A decision is pending. Liggett continues to believe that the April 2017 Chancery Court order is in error because the most favored nations provision in the 1996 Agreement eliminated all of Liggett’s payment obligations to Mississippi, and reserved all rights to appeal this and other issues at the conclusion of the case. In the event Liggett appeals an adverse judgment, the posting of a bond may be required. Liggett may be required to make additional payments to Mississippi and Texas which could have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows. Cautionary Statement Management is not able to reasonably predict the outcome of the litigation pending or threatened against Liggett or the Company. Litigation is subject to many uncertainties. Liggett has been found liable in multiple Engle progeny cases and Individual Actions, several of which were affirmed on appeal and satisfied by Liggett. It is possible that other cases could be decided unf |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Year Ended December 31, 2019 2018 2017 Cash paid during the period for: Interest, including interest related to finance leases $ 118,974 $ 107,021 $ 117,453 Income taxes 44,184 26,529 26,885 Non-cash investing and financing activities: Issuance of stock dividend 703 671 644 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 — Net receivable from purchase of subsidiary — 497 — |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Ladenburg Thalmann Financial Services Inc. As of December 31, 2019 , 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 10.22% 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 2019 , 2018 and 2017 under the agreement. These amounts are recorded as equity income. LTS paid cash compensation to the President and Chief Executive Officer of the Company, who served as Vice Chairman of LTS, of $1,525 , $1,525 and $1,425 for 2019 , 2018 and 2017 , respectively, and director fees of $75 , $50 and $53 for 2019 , 2018 and 2017 , respectively. LTS paid cash compensation to the Company EVP, who served as President and CEO of LTS, of $2,142 , $2,025 and $1,625 for 2019 , 2018 and 2017 , respectively. The Company owned 240,000 shares of LTS’s 8% Series A Cumulative Redeemable Preferred Stock (Liquidation Preference $25.00 Per Share) as of December 31, 2019 and recorded dividend income from the investment of $480 in each of 2019 , 2018 and 2017 . On November 11, 2019, LTS entered into an Agreement and Plan of Merger with Advisor Group whereby each LTS common share was converted into the right to receive $3.50 per common share. On February 14, 2020, the merger was completed and the Company received proceeds of $53,169 from the Company’s 15,191,205 common shares of LTS. The Company has also tendered 240,000 shares of LTS 8% Series A Cumulative Redeemable Preferred Stock (Liquidation Preference $25.00 Per Share) for redemption and anticipates receiving an additional $6,009 in March 2020. At the closing of the transaction, the Company’s Executive Vice President resigned as Chairman, President and Chief Executive Officer of LTS, and the Company’s management agreement with LTS was terminated. Castle Brands Inc. In October 2008, the Company entered into an agreement with Castle Brands Inc. (NYSE American: ROX), a publicly-traded developer and importer of premium branded spirits 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 of $75 in 2019 and $100 in both 2018 and 2017 under the agreement, respectively. Castle paid retention payments of $ 515 in 2019, $500 in 2018 and $400 in 2017 to the EVP who served as President and Chief Executive Officer as well as a director of Castle until October 2019. On October 9, 2019, Castle was acquired pursuant to a cash tender offer of $1.27 per outstanding Common Share and, in connection therewith, the Company tendered the entire amount of its 12,895,017 common shares of Castle. The Company received $16,377 in proceeds from this sale. Additionally, at the closing of the transaction, the Company’s Executive Vice President resigned as President and Chief Executive Officer of Castle and the Company’s management agreement with Castle was terminated. 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 $215 , $247 and $249 in 2019 , 2018 and 2017 , 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. As of December 31, 2019, these included the following: (i) an investment in BioCardia, Inc. (OTC: BCDA) and (ii) 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 and will expire on April 20, 2023. The Lease provides for payments of $36 per month increasing to $41 per month. The Company recorded rental expense of $458 , $450 and $415 for the years ended December 31, 2019 , 2018 and 2017 , 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 $712 , $318 and $787 , respectively, in accordance with brokerage activities in 2019 , 2018 and 2017 |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Description Total Quoted Prices in Active Markets for Identical Assets Assets: Money market funds (1) $ 307,655 $ 307,655 $ — $ — Commercial paper (1) 47,328 — 47,328 — Certificates of deposit (2) 2,193 — 2,193 — Money market funds securing legal bonds (2) 535 535 — — Investment securities at fair value Equity securities at fair value Marketable equity securities 23,819 23,819 — — Mutual funds invested in fixed-income securities 22,377 22,377 — — Total equity securities at fair value 46,196 46,196 — — Debt securities available for sale U.S. government securities 14,660 — 14,660 — Corporate securities 54,413 — 54,413 — U.S. government and federal agency 6,816 — 6,816 — Commercial mortgage-backed securities 382 — 382 — Commercial paper 5,887 — 5,887 — Index-linked U.S. bonds 779 — 779 — Foreign fixed-income securities 508 — 508 — Total debt securities available for sale 83,445 — 83,445 — Total investment securities at fair value 129,641 46,196 83,445 — Long-term investments Equity securities at fair value that qualify for the NAV practical expedient (3) 45,781 — — — Total $ 533,133 $ 354,386 $ 132,966 $ — Liabilities: Fair value of contingent liability $ 3,147 $ — $ — $ 3,147 Fair value of derivatives embedded within convertible debt 4,999 — — 4,999 Total $ 8,146 $ — $ — $ 8,146 (1) Amounts included in Cash and cash equivalents on the consolidated balance sheet, except for $4,423 that is included in current restricted assets and $3,160 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, 2018 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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. 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 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. In accordance with Subtopic 820-10, these investments are not classified under the fair value hierarchy disclosed above because they are measured at fair value using the NAV practical expedient. 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 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, 2019 : 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 $ 4,999 Discounted cash flow Assumed annual 2019 stock dividend 5 % Assumed remaining cash dividends - Q4 2019 and Q1 2020 $0.40/$0.20 Stock price $ 13.39 Convertible trading price (as a percentage of par value) 103.94 % Maturity April 15, 2020 Volatility 36.94 % Risk-free rate Term structure of US Treasury Securities Implied credit spread 1.0% - 3.0% (2.0%) Fair value of contingent liability $ 3,147 Monte Carlo simulation model Estimated fair value of the Douglas Elliman reporting unit $ 271,500 Risk-free rate for a 3-year term 1.61 % Leverage-adjusted equity volatility of peer firms 35.56 % 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) $ 1.60 Stock price (1) $ 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 % (1) Amount has not been adjusted to give effect to the stock dividend in 2019 . 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 except for investments in real estate ventures that were impaired as of December 31, 2019 and 2018 , respectively. The Company’s investment in real estate ventures subject to nonrecurring fair value measurements are as follows: Fair Value Measurement Using: Year Ended December 31, Quoted Prices in Active Markets for Identical Assets Description Impairment Charge Total Assets: Investments in real estate ventures $ 39,757 $ 18,335 $ — $ — $ 18,335 The Company estimated the fair value of its investments in real estate ventures using observable inputs such as market pricing based on recent events, however, significant judgment was required to select certain inputs from observed market data. The decrease in the investments in real estate ventures was attributed to the decline in the projected sales prices and the duration of the estimated sell out of the respective real estate ventures. The $39,757 of impairment charges were included in the results from operations for the year ended December 31, 2019 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
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 LLC, 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. Financial information for the Company’s operations before taxes and non-controlling interests for the years ended December 31, 2019 , 2018 and 2017 was as follows: Real Corporate Tobacco Estate and Other Total 2019 Revenues $ 1,114,840 $ 788,871 $ — $ 1,903,711 Operating income (loss) 261,630 (1) (2,930 ) (27,565 ) 231,135 Equity in losses from real estate ventures — (19,288 ) — (19,288 ) Identifiable assets 336,566 666,550 (4) 501,973 (6) 1,505,089 Depreciation and amortization 7,824 9,033 994 17,851 Capital expenditures 4,173 8,276 126 12,575 2018 Revenues $ 1,111,094 $ 759,168 $ — $ 1,870,262 Operating income (loss) 246,527 (2) 3,435 (5) (25,913 ) 224,049 Equity in earnings from real estate ventures — 14,446 — 14,446 Identifiable assets 315,706 539,828 (4) 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 (3) 21,439 (26,191 ) 235,648 Equity in earnings from real estate ventures — 21,395 — 21,395 Identifiable assets 309,316 558,776 (4) 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 _____________________________ (1) Operating income includes $990 of litigation settlement and judgment expense. (2) Operating income includes $6,298 of income from MSA Settlement, and $685 of litigation settlement and judgment expense. (3) Operating income includes $2,721 of income from MSA Settlement, and $6,591 of litigation settlement and judgment expense. (4) Includes real estate investments accounted for under the equity method of accounting of $131,556 , $141,105 and $188,131 as of December 31, 2019 , 2018 and 2017 , respectively. (5) Operating income includes $2,469 of litigation settlement and judgment income. (6) Corporate and Other identifiable assets primarily includes cash of $272,459 , investment securities of $129,641 , equity securities at fair value that qualify for the NAV practical expedient of $45,781 , and equity-method investments of $15,942 as of December 31, 2019 . 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 . |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (Unaudited) | QUARTERLY FINANCIAL RESULTS (UNAUDITED) Unaudited quarterly data for the years ended December 31, 2019 and 2018 are as follows: December 31, September 30, June 30, March 31, 2019 2019 2019 2019 Revenues $ 439,565 $ 504,790 $ 538,432 $ 420,924 Gross Profit 137,636 159,334 170,258 134,904 Operating income 45,581 66,720 76,244 42,590 Net income 10,667 36,008 39,307 15,033 Net income applicable to common shares attributed to Vector Group Ltd. 10,706 36,008 39,307 14,953 Per basic common share (1) : Net income applicable to common shares attributed to Vector Group Ltd. $ 0.06 $ 0.23 $ 0.25 $ 0.09 Per diluted common share (1) : Net income applicable to common shares attributed to Vector Group Ltd. $ 0.06 $ 0.23 $ 0.25 $ 0.08 _____________________________ (1) Per share computations include the impact of a 5% stock dividend paid on September 27, 2019 . 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, 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. $ 0.13 $ 0.07 $ 0.11 $ 0.04 Per diluted common share (1) : Net income applicable to common shares attributed to Vector Group Ltd. $ 0.13 $ 0.07 $ 0.11 $ 0.04 _____________________________ (1) Per share computations include the impact of a 5% |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
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 have filed a shelf registration statement for the offering of debt securities on a delayed or continuous basis and the Company is including this condensed consolidating financial information in connection therewith. 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, 2019 and 2018 , the related Condensed Consolidating Statements of Operations for the years ended December 31, 2019 , 2018 and 2017 , and the related Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2019 , 2018 and 2017 of Vector Group Ltd. (Parent/Issuer), the guarantor subsidiaries (Subsidiary Guarantors) and the subsidiaries that are not guarantors (Subsidiary Non-Guarantors). CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. ASSETS: Current assets: Cash and cash equivalents $ 272,282 $ 27,178 $ 71,881 $ — $ 371,341 Investment securities at fair value 129,641 — — — 129,641 Accounts receivable - trade, net — 15,646 21,313 — 36,959 Intercompany receivables 44,043 — — (44,043 ) — Inventories — 98,762 — — 98,762 Income taxes receivable, net — — 95 (95 ) — Other current assets 9,159 9,021 26,731 — 44,911 Total current assets 455,125 150,607 120,020 (44,138 ) 681,614 Property, plant and equipment, net 425 33,816 47,919 — 82,160 Investments in real estate, net — — 28,317 — 28,317 Long-term investments (of which $45,781 were carried at fair value) 61,723 — — — 61,723 Investments in real estate ventures — — 131,556 — 131,556 Operating lease right of use assets 7,085 4,830 137,663 — 149,578 Investments in consolidated subsidiaries 420,353 238,040 — (658,393 ) — Goodwill and other intangible assets, net — 107,511 158,482 — 265,993 Other assets 15,080 46,416 42,652 — 104,148 Total assets $ 959,791 $ 581,220 $ 666,609 $ (702,531 ) $ 1,505,089 LIABILITIES AND STOCKHOLDERS' DEFICIENCY: Current liabilities: Current portion of notes payable and long-term debt $ 163,932 $ 45,210 $ 10,127 $ (10,000 ) $ 209,269 Current portion of fair value of derivatives embedded within convertible debt 4,999 — — — 4,999 Intercompany payables — 236 43,807 (44,043 ) — Income taxes payable, net 2,398 2,835 — (95 ) 5,138 Current payments due under the Master Settlement Agreement — 34,116 — — 34,116 Current operating lease liability 508 2,015 15,771 — 18,294 Other current liabilities 52,065 78,947 59,202 (897 ) 189,317 Total current liabilities 223,902 163,359 128,907 (55,035 ) 461,133 Notes payable, long-term debt and other obligations, less current portion 1,377,108 20,089 20,019 (20,000 ) 1,397,216 Non-current employee benefits 50,806 17,047 — — 67,853 Deferred income taxes, net (14,492 ) 22,620 25,567 — 33,695 Non-current operating lease liability 7,558 3,402 146,003 — 156,963 Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement 373 41,020 34,999 (3,147 ) 73,245 Total liabilities 1,645,255 267,537 355,495 (78,182 ) 2,190,105 Commitments and contingencies Stockholders' (deficiency) equity attributed to Vector Group Ltd. (685,464 ) 313,683 310,666 (624,349 ) (685,464 ) Non-controlling interest — — 448 — 448 Total stockholders' (deficiency) equity (685,464 ) 313,683 311,114 (624,349 ) (685,016 ) Total liabilities and stockholders' deficiency $ 959,791 $ 581,220 $ 666,609 $ (702,531 ) $ 1,505,089 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 ) — Other current assets 1,500 7,599 21,729 — 30,828 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 ) — Goodwill and other intangible assets, net — 107,511 159,100 — 266,611 Other assets 14,616 38,154 37,582 — 90,352 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 Intercompany payables — 479 37,912 (38,391 ) — Income taxes payable, net 5,257 1,263 — (1,268 ) 5,252 Current payments due under the Master Settlement Agreement — 36,561 — — 36,561 Other current liabilities 55,915 73,279 51,144 — 180,338 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, including 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 STATEMENTS OF OPERATIONS Year Ended December 31, 2019 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Revenues $ — $ 1,115,318 $ 788,871 $ (478 ) $ 1,903,711 Expenses: Cost of sales — 771,130 530,449 — 1,301,579 Operating, selling, administrative and general expenses 38,051 71,001 261,433 (478 ) 370,007 Litigation settlement and judgment expense (income) — 990 — — 990 Management fee expense — 11,971 — (11,971 ) — Operating (loss) income (38,051 ) 260,226 (3,011 ) 11,971 231,135 Other income (expenses): Interest expense (134,594 ) (3,838 ) (913 ) 897 (138,448 ) Change in fair value of derivatives embedded within convertible debt 26,425 — — — 26,425 Loss on extinguishment of debt (4,301 ) — — — (4,301 ) Equity in losses from real estate ventures — — (19,288 ) — (19,288 ) Equity in earnings in consolidated subsidiaries 182,959 6,185 — (189,144 ) — Management fee income 11,971 — — (11,971 ) — Other, net 30,193 5,340 5,929 (3,157 ) 38,305 Income (loss) before provision for income taxes 74,602 267,913 (17,283 ) (191,404 ) 133,828 Income tax benefit (expense) 26,372 (65,069 ) 5,884 — (32,813 ) Net income (loss) 100,974 202,844 (11,399 ) (191,404 ) 101,015 Net income attributed to non-controlling interest — — (41 ) — (41 ) Net income (loss) attributed to Vector Group Ltd. $ 100,974 $ 202,844 $ (11,440 ) $ (191,404 ) $ 100,974 Comprehensive income attributed to non-controlling interest $ — $ — $ (41 ) $ — $ (41 ) Comprehensive income (loss) attributed to Vector Group Ltd. $ 103,845 $ 204,269 $ (11,440 ) $ (192,829 ) $ 103,845 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 — 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 in consolidated subsidiaries 195,582 3,669 — (199,251 ) — Management fee income 11,509 — — (11,509 ) — Other, net 3,193 (997 ) 1,725 — 3,921 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 Parent/ Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Consolidating Adjustments Consolidated Vector Group 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 ) Changes 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 earnings in consolidated subsidiaries 200,480 15,077 — (215,557 ) — Management fee income 11,069 — — (11,069 ) — Other, net 576 2,101 1,324 — 4,001 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 CASH FLOWS Year Ended December 31, 2019 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Net cash provided by operating activities $ 166,855 $ 219,173 $ 6,654 $ (268,611 ) $ 124,071 Cash flows from investing activities: Sale of investment securities 21,879 — — — 21,879 Maturities of investment securities 68,859 — — — 68,859 Purchase of investment securities (87,766 ) — — — (87,766 ) Proceeds from sale or liquidation of long-term investments 8,256 — — — 8,256 Purchase of long-term investments (6,556 ) — (2,667 ) — (9,223 ) Investments in real estate ventures — — (52,529 ) — (52,529 ) Distributions from investments in real estate ventures — — 41,300 — 41,300 Increase in cash surrender value of life insurance policies (235 ) (484 ) — — (719 ) (Increase) decrease in restricted assets (29 ) 1,023 — — 994 Investments in subsidiaries (59,467 ) — — 59,467 — Proceeds from sale of fixed assets — 8 9 — 17 Purchase of subsidiaries — — (380 ) — (380 ) Capital expenditures (126 ) (4,173 ) (8,276 ) — (12,575 ) Investments in real estate, net — — (2,295 ) — (2,295 ) Pay downs of investment securities 1,083 — — — 1,083 Net cash used in investing activities (54,102 ) (3,626 ) (24,838 ) 59,467 (23,099 ) Cash flows from financing activities: Proceeds from issuance of debt 230,000 — — — 230,000 Deferred financing costs (9,297 ) (505 ) — — (9,802 ) Repayments of debt (292,390 ) (820 ) (209 ) — (293,419 ) Borrowings under revolver — 243,688 — — 243,688 Repayments on revolver — (239,526 ) — — (239,526 ) Capital contributions received — 1,225 58,242 (59,467 ) — Intercompany dividends paid — (215,728 ) (52,883 ) 268,611 — Dividends and distributions on common stock (238,249 ) — — — (238,249 ) Distributions to non-controlling interest — — (286 ) — (286 ) Tax withholdings related to net share settlements of stock option exercise (5,415 ) — — — (5,415 ) Other — — (216 ) — (216 ) Net cash (used in) provided by financing activities (315,351 ) (211,666 ) 4,648 209,144 (313,225 ) Net (decrease) increase in cash, cash equivalents and restricted cash (202,598 ) 3,881 (13,536 ) — (212,253 ) Cash, cash equivalents and restricted cash, beginning of period 474,880 23,849 93,000 — 591,729 Cash, cash equivalents and restricted cash, end of period $ 272,282 $ 27,730 $ 79,464 $ — $ 379,476 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 investments in 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 ) Repayments 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 Parent/ Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Consolidating Adjustments Consolidated Vector Group 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 investments in 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 ) Proceeds from sale of fixed assets — 76 — — 76 Purchase of subsidiaries — — (6,569 ) — (6,569 ) Investments in subsidiaries (38,458 ) — — 38,458 — 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 Repayments of debt (835,000 ) (1,882 ) (323 ) — (837,205 ) Deferred financing costs (19,200 ) — — — (19,200 ) 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 exercise of Vector options 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 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Allowances for: Doubtful accounts $ 449 $ 246 $ 21 $ 674 Cash discounts 317 25,970 25,968 319 Deferred tax valuation allowance 3,817 — 2,525 1,292 Sales returns 6,935 4,068 3,218 7,785 Total $ 11,518 $ 30,284 $ 31,732 $ 10,070 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 _____________________________ (1) Includes $2,525 of adjustments related to Topic 606 adoption. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. 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. |
Estimates and Assumptions | 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. |
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, 2019 are uninsured. |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | Reconciliation of Cash, Cash Equivalents and Restricted Cash : Restricted cash amounts included in other current assets and other 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. The Company classifies investments in marketable equity securities as equity securities at fair value. The Company’s marketable equity securities are 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. |
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 17% and 12% of Liggett’s revenues in 2019 , 18% and 12% in 2018 , and 18% and 13% in 2017 . 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 2% and 4% , respectively, of Liggett’s net accounts receivable at December 31, 2019 , and 11% and 4% , respectively, at December 31, 2018 . 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. |
Accounts Receivable | Accounts Receivable : Accounts receivable-trade are recorded at their net realizable value. The allowance for doubtful accounts and cash discounts was $993 and $766 at December 31, 2019 and 2018 , 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 because of the time required for aging, they are included in current assets, which is common practice in the industry. |
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. 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. |
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 are 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. 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. |
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. |
Leases | Leases : The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and lease liabilities on the Company’s 2019 balance sheet. Finance leases are included in investments in real estate, net, property, plant and equipment and current and long-term portions of notes payable and long-term debt on the Company’s balance sheets. ROU assets represent the Company’s right to use an underlying asset for the duration of the lease term. Lease liabilities represent the Company’s obligation to make lease payments as determined by the lease agreement. Lease liabilities are recorded at commencement for the net present value of future lease payments over the lease term. The discount rate used is generally the Company’s estimated incremental borrowing rate unless the lessor’s implicit rate is readily determinable. Discount rates are calculated periodically to estimate the rate the Company would pay to borrow the funds necessary to obtain an asset of similar value, over a similar term, with a similar security. ROU assets are recorded and recognized at commencement for the lease liability amount, initial direct costs incurred and is reduced for lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease cost is recognized on a straight-line basis over the shorter of the useful life of the asset and the lease term. The Company has lease agreements with lease and non-lease components; the Company has elected the accounting policy to combine lease and non-lease components for all underlying asset classes. |
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 ( $8,967 , $8,696 and $7,655 , net of income taxes, for the years ended December 31, 2019 , 2018 and 2017 , respectively), which are included as “Distributions and dividends on common stock” in the Company’s consolidated statement of stockholders’ deficiency. |
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 : 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. |
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 $5,802 in 2019 , $5,658 in 2018 and $5,012 in 2017 . Shipping and handling costs related to sales transactions were part of cost of sales in 2019 and 2018 after the adoption of Topic 606. The 2017 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 when 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. |
Advertising | Advertising : Tobacco advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $3,751 , $3,672 and $3,712 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Real estate advertising costs, which are expensed as incurred and included within operating, selling, administration and general expenses, were $22,917 , $23,424 and $19,412 for the years ended December 31, 2019 and 2018 and 2017 , respectively. |
Comprehensive Income | 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. |
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, 2019 , the range of estimated fair market values of the Company’s embedded derivatives was between $4,993 and $5,005 . The Company recorded the fair market value of its embedded derivatives at the approximate midpoint of the range at $4,999 as of December 31, 2019 . 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 midpoint of the range at $31,424 as of December 31, 2018 . The estimated fair market value of the Company’s embedded derivatives could change significantly based on future market conditions. (See Note 11 |
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. The Company records Liggett’s product liability legal expenses as operating, selling, administrative and general expenses as those costs are incurred. |
New Accounting Pronouncements | New Accounting Pronouncements : Accounting Standards Updates (“ASU”) adopted in 2019 : 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 was effective for the Company’s fiscal year beginning January 1, 2019 and subsequent interim periods. 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 were applicable immediately while others were effective for the Company’s fiscal year beginning January 1, 2019. Adoption of this update did not have a material impact on the Company’s condensed 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. The Company adopted ASU 2018-02 effective January 1, 2019. The reclassification from the adoption of this standard resulted in a decrease of $4,697 to accumulated deficit and an increase of $4,697 to accumulated other comprehensive loss. On January 1, 2019, the Company adopted ASU No. 2016-02- Leases (Topic 842) applying the modified retrospective method and the option presented under ASU 2018-11 to transition only active leases as of January 1, 2019 with a cumulative effect adjustment as of that date. See Note 4 - Leases, for additional accounting policy and transition disclosures. 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 condensed 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 condensed 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 condensed 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which sets forth a current expected credit loss model that changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on the Company’s condensed 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 $ 371,341 $ 584,581 $ 301,353 Restricted cash and cash equivalents included in other current assets 4,423 2,697 9,081 Restricted cash and cash equivalents included in other assets 3,712 4,451 503 Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows $ 379,476 $ 591,729 $ 310,937 |
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 $200, $60, and $3,687, respectively $ 530 $ 108 $ 6,097 Pension-related amounts, net of income taxes of $8,120, $13,750, and $13,212, respectively (22,338 ) (20,090 ) (18,668 ) Accumulated other comprehensive loss $ (21,808 ) $ (19,982 ) $ (12,571 ) |
Schedule of other income (loss), net | Other, net consisted of: Year Ended December 31, 2019 2018 2017 Interest and dividend income $ 12,590 $ 11,349 $ 7,391 Equity in earnings (losses) from investments 17,000 3,158 (765 ) Net gains (losses) recognized on investment securities 7,440 (9,570 ) (296 ) Net periodic benefit cost other than the service costs (2,298 ) (1,020 ) (1,960 ) Other income (expense) 3,573 4 (369 ) Other, net $ 38,305 $ 3,921 $ 4,001 |
Schedule of other current liabilities | Other current liabilities consisted of: December 31, 2019 December 31, 2018 Accounts payable $ 10,222 $ 13,144 Accrued promotional expenses 35,900 37,940 Accrued excise and payroll taxes payable, net 18,653 14,612 Accrued interest 35,756 38,673 Commissions payable 18,378 12,975 Accrued salaries and benefits 29,464 30,228 Allowance for sales returns 7,785 6,935 Other current liabilities 33,159 25,831 Total other current liabilities $ 189,317 $ 180,338 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | In the following table, revenue is disaggregated by major product line for the Tobacco segment: Year Ended December 31, 2019 2018 2017 Tobacco Segment Revenues: Core Discount Brands - EAGLE 20’s, PYRAMID, GRAND PRIX, LIGGETT SELECT and EVE $ 1,008,050 $ 1,005,071 $ 969,796 Other Brands 106,790 106,023 111,154 Total tobacco revenues $ 1,114,840 $ 1,111,094 $ 1,080,950 In the following table, revenue is disaggregated by major services line and primary geographical market for the Real Estate segment: Year Ended December 31, 2019 Total New York City Northeast Southeast West Real Estate Segment Revenues : Commission brokerage income $ 669,489 $ 293,009 $ 164,724 $ 106,587 $ 105,169 Development marketing 72,925 48,850 — 19,594 4,481 Property management revenue 35,461 34,741 720 — — Title fees 6,233 — 6,233 — — Total Douglas Elliman revenue 784,108 376,600 171,677 126,181 109,650 Other real estate revenues 4,763 — — — 4,763 Total real estate revenues $ 788,871 $ 376,600 $ 171,677 $ 126,181 $ 114,413 Year Ended December 31, 2018 Total New York City Northeast Southeast West Real Estate Segment Revenues : Commission brokerage income $ 651,171 $ 285,325 $ 166,100 $ 99,720 $ 100,026 Development marketing 64,287 48,072 252 15,068 895 Property management revenue 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 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 revenue 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 |
Contract Balances | The following table provides information about contract assets and contract liabilities from development marketing and commercial leasing contracts with customers: December 31, 2019 December 31, 2018 Receivables, which are included in accounts receivable - trade, net $ 2,129 $ 2,050 Contract assets, net, which are included in other current assets 8,766 9,264 Payables, which are included in other current liabilities 1,663 1,082 Contract liabilities, which are included in other current liabilities 9,358 7,071 Contract assets, net, which are included in other assets 18,443 15,794 Contract liabilities, which are included in other liabilities 29,045 30,445 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017 , respectively, the Company has adjusted its net income for the effect of these participating securities as follows: For the year ended December 31, 2019 2018 2017 Net income attributed to Vector Group Ltd. $ 100,974 $ 58,105 $ 84,572 Income attributable to participating securities (7,464 ) (7,016 ) (6,071 ) Net income available to common stockholders attributed to Vector Group Ltd. $ 93,510 $ 51,089 $ 78,501 Net income for purposes of determining diluted EPS was as follows: For the year ended December 31, 2019 2018 2017 Net income attributed to Vector Group Ltd. $ 100,974 $ 58,105 $ 84,572 Income attributable to 7.5% Variable Interest Senior Convertible Notes (1,255 ) — — Income attributable to participating securities (7,464 ) (7,016 ) (6,071 ) Net income available to common stockholders attributed to Vector Group Ltd. $ 92,255 $ 51,089 $ 78,501 |
Basic and diluted EPS calculation shares | Basic and diluted EPS were calculated using the following common shares for the years ended December 31, 2019 , 2018 and 2017 : For the year ended December 31, 2019 2018 2017 Weighted-average shares for basic EPS 146,633,036 146,362,270 145,987,002 Plus incremental shares related to convertible debt 718,918 — — Plus incremental shares related to stock options and non-vested restricted stock 16,509 122,542 284,817 Weighted-average shares for diluted EPS 147,368,463 146,484,812 146,271,819 |
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, 2019 , 2018 and 2017 , but were not included in the computation of diluted EPS because the impact of common shares issuable under the convertible debt were anti-dilutive to EPS. Year Ended December 31, 2019 2018 2017 Weighted-average shares of non-vested restricted stock 1,207,366 — — Weighted-average expense per share $ 17.97 $ — $ — Weighted-average number of shares issuable upon conversion of debt 11,118,139 30,212,414 30,260,607 Weighted-average conversion price $ 20.27 $ 16.14 $ 16.15 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows: Year Ended December 31, 2019 Operating lease cost $ 37,817 Short-term lease cost 1,379 Variable lease cost 3,149 Finance lease cost: Amortization 224 Interest on lease liabilities 15 Total lease cost $ 42,584 Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 37,684 Operating cash flows from finance leases 15 Financing cash flows from finance leases 217 Right-of-use assets obtained in exchange for lease obligations: Operating leases 41,776 Finance leases 159 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: December 31, 2019 Operating leases: Operating lease right-of-use assets $ 149,578 Current operating lease liability $ 18,294 Non-current operating lease liability 156,963 Total operating lease liabilities $ 175,257 Finance leases: Investments in real estate, net $ 88 (1) Property, plant and equipment, at cost $ 127 Accumulated amortization (19 ) Property and equipment, net $ 108 Current portion of notes payable and long-term debt $ 86 Notes payable, long-term debt and other obligations, less current portion 108 Total finance lease liabilities $ 194 Weighted average remaining lease term in years: Operating leases 8.46 Finance leases 3.01 Weighted average discount rate: Operating leases 10.75 % Finance leases 8.61 % (1) Included in Investments in real estate, net on the consolidated balance sheet are finance lease equipment, at a cost of $762 and accumulated amortization of $674 as of December 31, 2019 . |
Maturities of Operating Lease Liabilities | As of December 31, 2019 , maturities of lease liabilities were as follows: Operating Leases Finance Leases Year Ending December 31: 2020 $ 36,611 $ 98 2021 35,453 44 2022 32,943 39 2023 30,866 31 2024 25,415 8 Thereafter 117,040 — Total lease payments 278,328 220 Less imputed interest (103,071 ) (26 ) Total $ 175,257 $ 194 |
Maturities of Financing Lease Liabilities | As of December 31, 2019 , maturities of lease liabilities were as follows: Operating Leases Finance Leases Year Ending December 31: 2020 $ 36,611 $ 98 2021 35,453 44 2022 32,943 39 2023 30,866 31 2024 25,415 8 Thereafter 117,040 — Total lease payments 278,328 220 Less imputed interest (103,071 ) (26 ) Total $ 175,257 $ 194 |
Schedule of aggregate minimum rentals under operating leases with non-cancelable terms | Under ASC 840, Leases , future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows: Lease Commitments Sublease Rentals Net Year Ending December 31: 2020 $ 35,973 $ 69 $ 35,904 2021 29,917 — 29,917 2022 27,592 — 27,592 2023 25,185 — 25,185 2024 23,589 — 23,589 Thereafter 104,126 — 104,126 Total $ 246,382 $ 69 $ 246,313 |
Investment Securities At Fair_2
Investment Securities At Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Equity securities at fair value consisted of the following: December 31, 2019 December 31, 2018 Marketable equity securities $ 23,819 $ 26,010 Mutual funds invested in fixed-income securities 22,377 21,192 Total equity securities at fair value $ 46,196 $ 47,202 The following is a summary of unrealized and realized net gains (losses) recognized in net income on equity securities at fair value after the adoption of ASU 2016-01, for the years ended December 31, 2019 and 2018 , respectively: Year Ended December 31, 2019 2018 Net gains (losses) recognized on equity securities (1) $ 7,320 $ (8,449 ) Less: Net gains (losses) recognized on equity securities sold (2) 1,526 (808 ) Net unrealized gains (losses) recognized on equity securities still held at the reporting date $ 5,794 $ (7,641 ) (1) Includes $6,619 of net gains and $517 of net losses recognized on equity securities at fair value that qualify for the NAV practical expedient for the years ended December 31, 2019 and 2018 , respectively. These equity securities are included in the “Long-term investments” line item on the consolidated balance sheet and are further discussed in Note 8 . (2) Includes $1,797 and $84 of net gains recognized on sales of equity securities at fair value that qualify for the NAV practical expedient for the years ended December 31, 2019 and 2018 , respectively. These equity securities are included in the “Long-term investments” line item on the consolidated balance sheet and are further discussed in Note 8 . Investment securities at fair value consisted of the following: December 31, 2019 December 31, 2018 Debt securities available for sale $ 83,445 $ 84,367 Equity securities at fair value 46,196 47,202 Total investment securities at fair value $ 129,641 $ 131,569 Net gains (losses) recognized on investment securities were as follows: Year Ended December 31, 2019 2018 2017 Net gains (losses) recognized on equity securities at fair value (1) $ 7,320 $ (8,449 ) $ — Net gains (losses) recognized on debt and equity securities available for sale (2) 135 (34 ) 169 Gross realized losses on other-than-temporary impairments (3) (15 ) (1,087 ) (465 ) Net gains (losses) recognized on investment securities $ 7,440 $ (9,570 ) $ (296 ) (1) Includes net gains (losses) recognized on equity securities at fair value and net gains (losses) recognized on equity securities at fair value that qualify for the NAV practical expedient. The latter securities are included in the “Long-term investments” line item on the consolidated balance sheet and are further discussed in Note 8 . (2) Includes net gains recognized on equity securities that were classified as available for sale in 2017 . (3) Includes impairments on equity securities that were classified as equity securities available for sale in 2017 . The components of debt securities available for sale at December 31, 2019 were as follows: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable debt securities $ 82,714 $ 731 $ — $ 83,445 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 |
Schedule of Maturity Dates of Fixed Income Securities | The table below summarizes the maturity dates of debt securities available for sale at December 31, 2019 . Investment Type: Fair Value Under 1 Year 1 Year up to 5 Years More than 5 Years U.S. Government securities $ 14,660 $ 4,914 $ 9,746 $ — Corporate securities 54,413 25,824 28,589 — U.S. mortgage-backed securities 6,816 3,337 3,479 — Commercial mortgage-backed securities 382 382 — — Commercial paper 5,887 5,887 — — Index-linked U.S. bonds 779 779 — — Foreign fixed-income securities 508 — 508 — Total debt securities available for sale by maturity dates $ 83,445 $ 41,123 $ 42,322 $ — |
Schedule of Realized Gains (Losses) | Gross realized gains and losses recognized on debt and equity securities available for sale were as follows: Year Ended December 31, 2019 2018 2017 Gross realized gains on sales $ 144 $ 4 $ 479 Gross realized losses on sales (9 ) (38 ) (310 ) Net gains (losses) recognized on debt and equity securities available for sale $ 135 $ (34 ) $ 169 Gross realized losses on other-than-temporary impairments $ (15 ) $ (1,087 ) $ (465 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of: December 31, December 31, Leaf tobacco $ 44,516 $ 42,917 Other raw materials 4,669 3,750 Work-in-process 333 1,931 Finished goods 71,183 63,937 Inventories at current cost 120,701 112,535 LIFO adjustments (21,939 ) (21,538 ) $ 98,762 $ 90,997 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment consisted of: December 31, December 31, Land and improvements $ 1,624 $ 1,624 Buildings 17,733 16,919 Machinery and equipment 202,667 198,649 Leasehold improvements 52,652 51,322 274,676 268,514 Less accumulated depreciation and amortization (192,516 ) (181,778 ) $ 82,160 $ 86,736 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Investments [Abstract] | |
Cost method investments | Long-term investments consisted of the following: December 31, 2019 December 31, 2018 Equity securities at fair value that qualify for the NAV practical expedient $ 45,781 $ 54,628 Equity-method investments 15,942 11,631 $ 61,723 $ 66,259 |
Equity method investments | Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for Indian Creek, Boyar and Optika. December 31, December 31, Investment securities $ 210,685 $ 33,830 Cash and cash equivalents 26,088 521 Other assets 1,861 33 Total assets $ 238,634 $ 34,384 Other liabilities $ 85,623 $ 738 Total liabilities 85,623 738 Partners’ capital 153,011 33,646 Total liabilities and partners’ capital $ 238,634 $ 34,384 Year Ended December 31, 2019 2018 2017 Investment income $ 2,834 $ 549 $ 792 Expenses 6,756 861 690 Net investment (loss) gain (3,922 ) (312 ) 102 Total net realized gain (loss) and net change in unrealized depreciation from investments 18,822 (5,781 ) 100 Net increase (decrease) in partners’ capital resulting from operations $ 14,900 $ (6,093 ) $ 202 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 $ 251,033 $ 262,834 Receivables from clearing brokers, note receivable and other receivable, net 175,600 165,149 Goodwill and intangible assets, net 188,975 200,199 Other assets 202,516 172,409 Total assets $ 818,124 $ 800,591 Accrued compensation, commissions and fees payable $ 142,875 $ 141,260 Accounts payable and accrued liabilities 37,197 50,122 Notes payable, net of $5,881 and $115 unamortized discount in 2019 and 2018, respectively 315,898 185,199 Other liabilities 73,380 37,658 Total liabilities 569,350 414,239 Preferred stock 2 2 Common stock 15 20 Additional paid-in capital 317,735 487,752 Accumulated deficit (68,971 ) (101,467 ) Total controlling shareholders’ equity 248,781 386,307 Non-controlling interest (7 ) 45 Total shareholders’ equity 248,774 386,352 Total liabilities and shareholders’ equity $ 818,124 $ 800,591 (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, 2019 2018 2017 Revenues $ 1,428,688 $ 1,380,031 $ 1,221,195 Expenses 1,385,699 1,345,768 1,217,331 Income before other items 42,989 34,263 3,864 Change in fair value of contingent consideration (363 ) (232 ) 48 Income from continuing operations 42,626 34,031 3,912 Net income $ 31,779 $ 30,858 $ 1,669 Long-term investments consisted of the following: December 31, 2019 December 31, 2018 Equity securities at fair value that qualify for the NAV practical expedient $ 45,781 $ 54,628 Equity-method investments 15,942 11,631 $ 61,723 $ 66,259 Equity-method investments consisted of the following: December 31, 2019 December 31, 2018 Indian Creek Investors LP (“Indian Creek”) $ 735 $ 1,167 Boyar Value Fund (“Boyar”) 9,989 8,384 Optika Fund LLC (“Optika”) 4,785 — Ladenburg Thalmann Financial Services Inc. (“LTS”) 433 2,080 Castle Brands, Inc. (“Castle”) — — $ 15,942 $ 11,631 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, Greenwich, 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. For the year ended December 31, 2017, 10 Madison Square West was significant enough to warrant separate disclosure. 10 Madison Square West: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 281 $ 28,539 $ 197,157 Cost of goods sold — 24,250 116,120 Other expenses (income) 8,877 (4,236 ) 11,649 (Loss) income from continuing operations $ (8,596 ) $ 8,525 $ 69,388 December 31, December 31, Balance Sheets Investment in real estate $ 4,989 $ 2,369 Total assets 15,186 15,071 Total debt 3,275 3,319 Total liabilities 3,575 3,616 Non-controlling interest 10,228 10,091 1 QPS Tower: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 386,470 $ 14,625 $ 4,216 Cost of goods sold 220,316 — — Other expenses 141,742 26,357 18,508 Income (loss) from continuing operations $ 24,412 $ (11,732 ) $ (14,292 ) December 31, December 31, Balance Sheets Investment in real estate $ — $ 215,956 Total assets — 220,350 Total debt — 209,602 Total liabilities — 212,640 Greenwich: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 5 $ 28 $ (768 ) Other expenses 6,658 146,286 2,696 Loss from continuing operations $ (6,653 ) $ (146,258 ) $ (3,464 ) December 31, December 31, Balance Sheets Investment in real estate $ 504,221 $ 403,815 Total assets 512,038 419,518 Total debt 460,124 408,779 Total liabilities 544,687 445,514 Non-controlling interest (23,942 ) (19,064 ) Other Condominium and Mixed Use Development: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 208,481 $ 365,890 $ 176,306 Cost of goods sold 76,162 71,623 93,766 Other expenses 132,931 44,211 47,590 (Loss) income from continuing operations $ (612 ) $ 250,056 $ 34,950 December 31, December 31, Balance Sheets Investment in real estate $ 3,569,915 $ 2,541,994 Total assets 3,628,402 2,701,652 Total debt 2,593,606 1,798,296 Total liabilities 2,896,607 2,036,431 Non-controlling interest 69,787 150,897 Apartment Buildings: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 70,862 $ 44,366 $ 66,588 Other expenses 67,094 105,899 64,431 Income (loss) from continuing operations $ 3,768 $ (61,533 ) $ 2,157 December 31, December 31, Balance Sheets Investment in real estate $ 545,400 $ 558,268 Total assets 562,879 574,664 Total debt 402,526 412,447 Total liabilities 410,723 420,164 Non-controlling interest 114,193 115,952 Hotels: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 147,446 $ 171,949 $ 75,862 Cost of goods sold 5,399 4,522 4,035 Other expenses 220,045 268,007 112,124 Loss from continuing operations $ (77,998 ) $ (100,580 ) $ (40,297 ) December 31, December 31, Balance Sheets Investment in real estate $ 1,017,810 $ 1,019,133 Total assets 1,133,697 1,126,598 Total debt 778,194 696,200 Total liabilities 816,118 736,101 Non-controlling interest 284,298 348,451 Commercial: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 31,980 $ 56,773 $ 6,636 Other expenses 7,724 11,647 3,294 Income from continuing operations $ 24,256 $ 45,126 $ 3,342 December 31, December 31, Balance Sheets Investment in real estate $ 52,384 $ 53,193 Total assets 70,169 70,395 Total debt 55,625 55,625 Total liabilities 54,342 54,645 Other: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 4,008 $ 4,823 $ 3,442 Other expenses 13,515 6,382 5,069 Loss income from continuing operations $ (9,507 ) $ (1,559 ) $ (1,627 ) December 31, December 31, Balance Sheets Investment in real estate $ 1,054,134 $ 710,549 Total assets 1,192,149 1,152,124 Total debt 671,845 658,592 Total liabilities 850,587 665,463 Non-controlling interest 263,438 392,933 |
New Valley LLC (Tables)
New Valley LLC (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Investments in real estate ventures | New Valley recognized equity in (losses) earnings from real estate ventures as follows: Year Ended December 31, 2019 2018 2017 Condominium and Mixed Use Development: New York City SMSA $ (31,011 ) $ (923 ) $ 35,578 All other U.S. areas (6,467 ) (1,063 ) (2,063 ) (37,478 ) (1,986 ) 33,515 Apartment Buildings: New York City SMSA — 17,467 (6,703 ) All other U.S. areas 79 164 (532 ) 79 17,631 (7,235 ) Hotels: New York City SMSA 8,081 (2,727 ) (5,347 ) International 41 (246 ) 232 8,122 (2,973 ) (5,115 ) Commercial: New York City SMSA 1 (562 ) (742 ) All other U.S. areas 773 1,608 403 774 1,046 (339 ) Other 9,215 728 569 Total equity in (losses) earnings from real estate ventures $ (19,288 ) $ 14,446 $ 21,395 New Valley made contributions to its investments in real estate ventures as follows: December 31, 2019 December 31, 2018 Condominium and Mixed Use Development: New York City SMSA $ 21,760 $ 4,135 All other U.S. areas 29,993 — 51,753 4,135 Apartment Buildings: New York City SMSA — 975 — 975 Hotels: New York City SMSA 172 168 172 168 Other 604 4,450 Total contributions $ 52,529 $ 9,728 The components of “Investments in real estate ventures” were as follows: Range of Ownership (1) December 31, 2019 December 31, 2018 Condominium and Mixed Use Development: New York City SMSA 3.1% - 49.5% $ 51,078 $ 65,007 (2) All other U.S. areas 15.0% - 77.8% 55,842 31,392 106,920 96,399 Apartment Buildings: New York City SMSA 45.4% — — (3) All other U.S. areas 7.6% - 16.3% — — — — Hotels: New York City SMSA 1.0% - 18.4% 2,462 15,782 (2) International 49.0% 2,161 2,334 4,623 18,116 Commercial: New York City SMSA 49.0% 1,852 1,867 All other U.S. areas 1.6% 7,634 7,053 9,486 8,920 Other 15.0% - 50.0% 10,527 17,670 (3) Investments in real estate ventures $ 131,556 $ 141,105 _____________________________ (1) The Range of Ownership reflects New Valley’s estimated current ownership percentage. New Valley’s actual ownership percentage as well as the percentage of earnings and cash distributions may ultimately differ as a result of a number of factors including potential dilution, financing or admission of additional partners. (2) 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 . (3) 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 . New Valley received distributions from its investments in real estate ventures as follows: December 31, 2019 December 31, 2018 Condominium and Mixed Use Development: New York City SMSA $ 7,955 $ 39,207 All other U.S. areas 1,279 — 9,234 39,207 Apartment Buildings: New York City SMSA — 27,569 All other U.S. areas 79 422 79 27,991 Hotels: New York City SMSA 21,572 1,542 International 215 220 21,787 1,762 Commercial: New York City SMSA 16 9 All other U.S. areas 250 10,139 266 10,148 Other 16,962 1,060 Total distributions $ 48,328 $ 80,168 New Valley’s maximum exposure to loss was as follows: December 31, 2019 Condominium and Mixed Use Development: New York City SMSA $ 54,208 All other U.S. areas 55,842 110,050 Hotels: New York City SMSA 2,462 International 2,161 4,623 Commercial: New York City SMSA 1,852 All other U.S. areas 7,634 9,486 Other 24,626 Total maximum exposure to loss $ 148,785 |
Equity method investments | Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for Indian Creek, Boyar and Optika. December 31, December 31, Investment securities $ 210,685 $ 33,830 Cash and cash equivalents 26,088 521 Other assets 1,861 33 Total assets $ 238,634 $ 34,384 Other liabilities $ 85,623 $ 738 Total liabilities 85,623 738 Partners’ capital 153,011 33,646 Total liabilities and partners’ capital $ 238,634 $ 34,384 Year Ended December 31, 2019 2018 2017 Investment income $ 2,834 $ 549 $ 792 Expenses 6,756 861 690 Net investment (loss) gain (3,922 ) (312 ) 102 Total net realized gain (loss) and net change in unrealized depreciation from investments 18,822 (5,781 ) 100 Net increase (decrease) in partners’ capital resulting from operations $ 14,900 $ (6,093 ) $ 202 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 $ 251,033 $ 262,834 Receivables from clearing brokers, note receivable and other receivable, net 175,600 165,149 Goodwill and intangible assets, net 188,975 200,199 Other assets 202,516 172,409 Total assets $ 818,124 $ 800,591 Accrued compensation, commissions and fees payable $ 142,875 $ 141,260 Accounts payable and accrued liabilities 37,197 50,122 Notes payable, net of $5,881 and $115 unamortized discount in 2019 and 2018, respectively 315,898 185,199 Other liabilities 73,380 37,658 Total liabilities 569,350 414,239 Preferred stock 2 2 Common stock 15 20 Additional paid-in capital 317,735 487,752 Accumulated deficit (68,971 ) (101,467 ) Total controlling shareholders’ equity 248,781 386,307 Non-controlling interest (7 ) 45 Total shareholders’ equity 248,774 386,352 Total liabilities and shareholders’ equity $ 818,124 $ 800,591 (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, 2019 2018 2017 Revenues $ 1,428,688 $ 1,380,031 $ 1,221,195 Expenses 1,385,699 1,345,768 1,217,331 Income before other items 42,989 34,263 3,864 Change in fair value of contingent consideration (363 ) (232 ) 48 Income from continuing operations 42,626 34,031 3,912 Net income $ 31,779 $ 30,858 $ 1,669 Long-term investments consisted of the following: December 31, 2019 December 31, 2018 Equity securities at fair value that qualify for the NAV practical expedient $ 45,781 $ 54,628 Equity-method investments 15,942 11,631 $ 61,723 $ 66,259 Equity-method investments consisted of the following: December 31, 2019 December 31, 2018 Indian Creek Investors LP (“Indian Creek”) $ 735 $ 1,167 Boyar Value Fund (“Boyar”) 9,989 8,384 Optika Fund LLC (“Optika”) 4,785 — Ladenburg Thalmann Financial Services Inc. (“LTS”) 433 2,080 Castle Brands, Inc. (“Castle”) — — $ 15,942 $ 11,631 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, Greenwich, 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. For the year ended December 31, 2017, 10 Madison Square West was significant enough to warrant separate disclosure. 10 Madison Square West: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 281 $ 28,539 $ 197,157 Cost of goods sold — 24,250 116,120 Other expenses (income) 8,877 (4,236 ) 11,649 (Loss) income from continuing operations $ (8,596 ) $ 8,525 $ 69,388 December 31, December 31, Balance Sheets Investment in real estate $ 4,989 $ 2,369 Total assets 15,186 15,071 Total debt 3,275 3,319 Total liabilities 3,575 3,616 Non-controlling interest 10,228 10,091 1 QPS Tower: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 386,470 $ 14,625 $ 4,216 Cost of goods sold 220,316 — — Other expenses 141,742 26,357 18,508 Income (loss) from continuing operations $ 24,412 $ (11,732 ) $ (14,292 ) December 31, December 31, Balance Sheets Investment in real estate $ — $ 215,956 Total assets — 220,350 Total debt — 209,602 Total liabilities — 212,640 Greenwich: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 5 $ 28 $ (768 ) Other expenses 6,658 146,286 2,696 Loss from continuing operations $ (6,653 ) $ (146,258 ) $ (3,464 ) December 31, December 31, Balance Sheets Investment in real estate $ 504,221 $ 403,815 Total assets 512,038 419,518 Total debt 460,124 408,779 Total liabilities 544,687 445,514 Non-controlling interest (23,942 ) (19,064 ) Other Condominium and Mixed Use Development: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 208,481 $ 365,890 $ 176,306 Cost of goods sold 76,162 71,623 93,766 Other expenses 132,931 44,211 47,590 (Loss) income from continuing operations $ (612 ) $ 250,056 $ 34,950 December 31, December 31, Balance Sheets Investment in real estate $ 3,569,915 $ 2,541,994 Total assets 3,628,402 2,701,652 Total debt 2,593,606 1,798,296 Total liabilities 2,896,607 2,036,431 Non-controlling interest 69,787 150,897 Apartment Buildings: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 70,862 $ 44,366 $ 66,588 Other expenses 67,094 105,899 64,431 Income (loss) from continuing operations $ 3,768 $ (61,533 ) $ 2,157 December 31, December 31, Balance Sheets Investment in real estate $ 545,400 $ 558,268 Total assets 562,879 574,664 Total debt 402,526 412,447 Total liabilities 410,723 420,164 Non-controlling interest 114,193 115,952 Hotels: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 147,446 $ 171,949 $ 75,862 Cost of goods sold 5,399 4,522 4,035 Other expenses 220,045 268,007 112,124 Loss from continuing operations $ (77,998 ) $ (100,580 ) $ (40,297 ) December 31, December 31, Balance Sheets Investment in real estate $ 1,017,810 $ 1,019,133 Total assets 1,133,697 1,126,598 Total debt 778,194 696,200 Total liabilities 816,118 736,101 Non-controlling interest 284,298 348,451 Commercial: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 31,980 $ 56,773 $ 6,636 Other expenses 7,724 11,647 3,294 Income from continuing operations $ 24,256 $ 45,126 $ 3,342 December 31, December 31, Balance Sheets Investment in real estate $ 52,384 $ 53,193 Total assets 70,169 70,395 Total debt 55,625 55,625 Total liabilities 54,342 54,645 Other: Year Ended December 31, 2019 2018 2017 Income Statement Revenue $ 4,008 $ 4,823 $ 3,442 Other expenses 13,515 6,382 5,069 Loss income from continuing operations $ (9,507 ) $ (1,559 ) $ (1,627 ) December 31, December 31, Balance Sheets Investment in real estate $ 1,054,134 $ 710,549 Total assets 1,192,149 1,152,124 Total debt 671,845 658,592 Total liabilities 850,587 665,463 Non-controlling interest 263,438 392,933 |
Investments in Real Estate, net | The components of “Investments in real estate, net” were as follows: December 31, December 31, Escena, net $ 9,972 $ 10,170 Sagaponack 18,345 16,050 Investment in real estate, net $ 28,317 $ 26,220 The assets have been classified as an “Investments in real estate, net” on the Company’s consolidated balance sheet and the components were as follows: December 31, December 31, Land and land improvements $ 8,910 $ 8,910 Building and building improvements 1,926 1,900 Other 1,659 2,162 12,495 12,972 Less accumulated depreciation (2,523 ) (2,802 ) $ 9,972 $ 10,170 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 $ 78,008 $ 77,568 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 474 1,532 Total goodwill and other intangible assets, net $ 265,993 $ 266,611 |
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 Other intangibles 1 - 5 4,689 1,724 4,689 15,168 Less: Accumulated amortization on amortizable intangibles (4,215 ) (13,636 ) Other intangibles, net $ 474 $ 1,532 Contract liabilities assumed: Unfavorable leases 1 - 10 $ — $ 4,022 Less: Accumulated amortization on unfavorable leases — (3,076 ) Unfavorable leases, net $ — $ 946 |
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 Other intangibles 1 - 5 4,689 1,724 4,689 15,168 Less: Accumulated amortization on amortizable intangibles (4,215 ) (13,636 ) Other intangibles, net $ 474 $ 1,532 Contract liabilities assumed: Unfavorable leases 1 - 10 $ — $ 4,022 Less: Accumulated amortization on unfavorable leases — (3,076 ) Unfavorable leases, net $ — $ 946 |
Notes Payable, Long-Term Debt_2
Notes Payable, Long-Term Debt and Other Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes payable, long-term debt and other obligations | Notes payable, long-term debt and other obligations consisted of: December 31, 2019 December 31, 2018 Vector: 6.125% Senior Secured Notes due 2025 $ 850,000 $ 850,000 10.5% Senior Notes due 2026, net of unamortized discount of $3,392 and $0 551,608 325,000 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $5,276 and $29,465* 164,334 202,535 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $0 and $3,359* — 226,641 Liggett: Revolving credit facility 34,952 28,381 Term loan under credit facility — 2,409 Equipment loans 347 1,039 Other 30,146 30,440 Total notes payable, long-term debt and other obligations 1,631,387 1,666,445 Less: Debt issuance costs (24,902 ) (23,614 ) Total notes payable, long-term debt and other obligations 1,606,485 1,642,831 Less: Current maturities (209,269 ) (256,134 ) Amount due after one year $ 1,397,216 $ 1,386,697 _____________________________ * The fair value of the derivatives embedded within the 5.5% Variable Interest Senior Convertible Debentures ( $4,999 at December 31, 2019 and $24,789 at December 31, 2018 , respectively) and the 7.5% Variable Interest Senior Convertible Debentures ( $6,635 at December 31, 2018 ) 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 was as follows: Year Ended December 31, 2019 2018 2017 7.5% Convertible Notes $ 2,031 $ 39,845 $ 23,720 5.5% Convertible Notes 16,481 15,924 13,490 Interest expense associated with embedded derivatives $ 18,512 $ 55,769 $ 37,210 A summary of non-cash changes in fair value of derivatives embedded within convertible debt was as follows: Year Ended December 31, 2019 2018 2017 7.5% Convertible Notes $ 6,635 $ 24,530 $ 21,734 5.5% Convertible Notes 19,790 20,459 14,185 Gain on changes in fair value of derivatives embedded within convertible debt $ 26,425 $ 44,989 $ 35,919 |
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, 2019 2018 2017 Amortization of beneficial conversion feature: 7.5% Convertible Notes $ 1,328 $ 26,049 $ 15,507 5.5% Convertible Notes 4,973 4,805 4,070 Interest expense associated with beneficial conversion feature $ 6,301 $ 30,854 $ 19,577 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, 2017 $ 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 Gain from changes in fair value of embedded derivatives (6,635 ) (19,790 ) (26,425 ) Balance at December 31, 2019 $ — $ 4,999 $ 4,999 The conversion rates for all convertible debt outstanding are summarized below: December 31, 2019 December 31, 2018 Conversion Price Shares per $1,000 Conversion Price Shares per $1,000 7.5% Convertible Notes $ — — $ 13.14 76.0595 5.5% Convertible Notes $ 20.27 49.3363 $ 20.27 49.3363 The following table reconciles unamortized debt discount within convertible debt: 7.5% Convertible Notes 5.5% Convertible Notes Total Balance at January 1, 2017 $ 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 Partial redemption of 5.5% convertible notes — (2,735 ) (2,735 ) Amortization of embedded derivatives (2,031 ) (16,481 ) (18,512 ) Amortization of beneficial conversion feature (1,328 ) (4,973 ) (6,301 ) Balance at December 31, 2019 $ — $ 5,276 $ 5,276 |
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 were as follows: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Senior Notes $ 1,401,608 $ 1,409,920 $ 1,175,000 $ 1,034,500 Variable Interest Senior Convertible Debt 164,334 176,289 429,176 468,704 Liggett and other 65,445 65,456 62,269 62,255 Notes payable and long-term debt $ 1,631,387 (1) $ 1,651,665 $ 1,666,445 (1) $ 1,565,459 __________ (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 were as follows: Principal Unamortized Discount/ (Premium) Net Year Ending December 31: 2020 $ 214,947 $ 5,276 $ 209,671 2021 10,026 — 10,026 2022 10,045 — 10,045 2023 29 — 29 2024 8 — 8 Thereafter 1,405,000 3,392 1,401,608 Total $ 1,640,055 $ 8,668 $ 1,631,387 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation at January 1 $ (123,165 ) $ (132,722 ) $ (8,296 ) $ (8,967 ) Service cost (533 ) (587 ) (3 ) (4 ) Interest cost (4,860 ) (4,495 ) (347 ) (330 ) Plan amendment — — — (39 ) Benefits paid 7,696 8,524 594 553 Expenses paid 391 260 — — Actuarial gain (8,526 ) 5,855 (934 ) 491 Benefit obligation at December 31 $ (128,997 ) $ (123,165 ) $ (8,986 ) $ (8,296 ) Change in plan assets: Fair value of plan assets at January 1 $ 93,167 $ 106,192 $ — $ — Actual return on plan assets 15,788 (4,497 ) — — Expenses paid (391 ) (260 ) — — Contributions 183 256 594 553 Benefits paid (7,696 ) (8,524 ) (594 ) (553 ) Fair value of plan assets at December 31 $ 101,051 $ 93,167 $ — $ — Unfunded status at December 31 $ (27,946 ) $ (29,998 ) $ (8,986 ) $ (8,296 ) Amounts recognized in the consolidated balance sheets: Prepaid pension costs $ 31,686 $ 23,869 $ — $ — Other accrued liabilities (111 ) (228 ) (654 ) (647 ) Non-current employee benefit liabilities (59,521 ) (53,639 ) (8,332 ) (7,649 ) Net amounts recognized $ (27,946 ) $ (29,998 ) $ (8,986 ) $ (8,296 ) |
Schedule of Net Benefit Costs | Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Service cost — benefits earned during the period $ 533 $ 587 $ 564 $ 3 $ 4 $ 5 Interest cost on projected benefit obligation 4,860 4,495 5,059 347 330 368 Expected return on assets (4,874 ) (5,572 ) (5,424 ) — — — Prior service cost — — — 4 4 — Amortization of net loss (gain) 2,001 1,804 2,009 (40 ) (41 ) (54 ) Net expense $ 2,520 $ 1,314 $ 2,208 $ 314 $ 297 $ 319 |
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 that are expected to be recognized as components of net periodic benefit cost for the year ending 2020 . Defined Benefit Pension Plans Post- Retirement Plans Total Prior service cost $ — $ 4 $ 4 Actuarial loss $ 1,836 $ 11 $ 1,847 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | As of December 31, 2019 , 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, 2019 $ (34,053 ) $ 213 $ (33,840 ) Amortization of prior service costs — 4 4 Prior service costs — (37 ) (37 ) Amortization of loss (gain) 2,001 (40 ) 1,961 Net gain (loss) arising during the year 2,388 (934 ) 1,454 Accumulated other comprehensive loss as of December 31, 2019 $ (29,664 ) $ (794 ) $ (30,458 ) As of December 31, 2018 , accumulated other comprehensive (loss) income, before income taxes, consisted 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 ) $ 213 $ (33,840 ) |
Schedule of Assumptions Used | Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Weighted average assumptions: Discount rates — benefit obligation 2.55% - 3.1% 3.9% - 4.25% 3.25% - 3.7% 3.30% 4.35% 3.80% Discount rates — service cost 3.9% - 4.25% 3.25% - 3.7% 3.6% - 4.2% 4.35% 3.80% 4.40% Assumed rates of return on invested assets 5.50% 5.50% 5.50% 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, 2019 2018 Asset category: Equity securities 38 % 52 % Investment grade fixed income securities 53 % 39 % 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 were as follows: Fair Value Measurements as of December 31, 2019 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 $ 2,398 $ — $ 2,398 $ — Amounts in individually managed investment accounts: Cash, mutual funds and common stock 76 76 — — Common collective trusts 38,537 — 38,537 — Common collective trusts at NAV (1) 51,068 — — — Mutual Funds 8,972 — 8,972 — Total $ 101,051 $ 76 $ 49,907 $ — (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, 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 — — Common collective trusts 48,126 — 48,126 — Common collective trusts at NAV (1) 33,731 — — — Investment Partnership 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. |
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, 2019 and 2018 were as follows: 2019 2018 Balance as of January 1 $ — $ 127 Distributions — (127 ) Balance as of December 31 $ — $ — |
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 47 (44 ) |
Schedule of Expected Benefit Payments | Estimated future pension and postretirement medical benefits payments were as follows: Pension Postretirement Medical 2020 $ 7,548 $ 655 2021 14,708 651 2022 6,614 650 2023 6,200 644 2024 56,959 640 2025 - 2029 23,303 2,897 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The amounts provided for income taxes were as follows: Year Ended December 31, 2019 2018 2017 Current: U.S. Federal $ 33,379 $ 27,962 $ 28,271 State 10,632 11,225 3,458 $ 44,011 $ 39,187 $ 31,729 Deferred: U.S. Federal $ (7,209 ) $ (12,524 ) $ (31,049 ) State (3,989 ) (5,111 ) (2,262 ) (11,198 ) (17,635 ) (33,311 ) Total $ 32,813 $ 21,552 $ (1,582 ) |
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, 2019 December 31, 2018 Deferred tax assets: Employee benefit accruals $ 11,709 $ 12,801 Impairment of investments 9,772 4,131 Impact of timing of settlement payments 19,313 20,551 Disallowed interest expense carryforward — 1,619 Various U.S. state tax loss carryforwards 4,296 5,137 Operating lease liabilities 3,679 — Other 2,274 1,966 51,043 46,205 Less: Valuation allowance (1,292 ) (3,817 ) Net deferred tax assets $ 49,751 $ 42,388 Deferred tax liabilities: Basis differences on non-consolidated entities (1) $ (7,990 ) $ (7,752 ) Basis differences on fixed and intangible assets (35,082 ) (35,854 ) Capitalized interest expense (1) — (6,532 ) Basis differences on inventory (10,645 ) (11,497 ) Basis differences on long-term investments (22,424 ) (16,496 ) Impact of accounting for convertible debt (813 ) (385 ) Basis differences on available for sale securities (3,219 ) (1,283 ) Operating lease right of use assets (3,273 ) — $ (83,446 ) $ (79,799 ) Net deferred tax liabilities $ (33,695 ) $ (37,411 ) _____________________________ (1) The Company reclassified its capitalized interest expense to its basis differences on non-consolidated entities during the year ended December 31, 2019 . |
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, 2019 2018 2017 Income before provision for income taxes $ 133,828 $ 79,559 $ 89,168 Federal income tax expense at statutory rate 28,104 16,707 31,209 Increases (decreases) resulting from: State income taxes, net of federal income tax benefits 6,430 6,060 3,833 Impact of non-controlling interest (9 ) 21 (2,162 ) Non-deductible expenses 1,385 1,993 2,146 Impact of domestic production deduction — 359 (2,960 ) Impact of Tax Cuts and Jobs Act of 2017 — (2,691 ) (28,845 ) Excess tax benefits on stock-based compensation (1,488 ) (778 ) (1,143 ) Tax credits (166 ) (127 ) (2,683 ) Other 791 (545 ) (155 ) Inclusion of tax liabilities from unincorporated entities 291 400 (47 ) Changes in valuation allowance, net of equity and tax audit adjustments (2,525 ) 153 (775 ) Income tax expense (benefit) $ 32,813 $ 21,552 $ (1,582 ) |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits: Balance at January 1, 2017 $ 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 Additions based on tax positions related to prior years 1,586 Settlements — Expirations of the statute of limitations (330 ) Balance at December 31, 2019 $ 1,647 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The assumptions used for grants in the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 Risk-free interest rate 2.5% - 2.7% 2.7% - 2.9% 2.1% - 2.4% Expected volatility 20.24% - 20.45% 19.02% - 21.05% 18.88% - 21.62% Dividend yield 0.0 % 0.0 % 0.0 % Expected holding period 4.00 – 10.00 years 5.00 – 10.00 years 6.00 – 10.00 years Weighted-average grant date fair value (1) $2.36 - $4.08 $4.62 - $7.58 $5.39 - $8.17 _____________________________ ( 1) Per share amounts have not been adjusted to give effect to the stock dividends in 2019 , 2018 and 2017 . |
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, 2017 4,985,059 $ 12.10 5.3 $ 37,557 Granted 448,580 $ 19.70 Exercised — $ — Canceled (13 ) $ — Outstanding on December 31, 2017 5,433,626 $ 12.74 4.7 $ 41,069 Granted 427,219 $ 18.42 Exercised — $ — Canceled (12 ) $ — Outstanding on December 31, 2018 5,860,833 $ 13.16 4.1 $ 1,095 Granted 406,875 $ 10.92 Exercised (1,824,351 ) $ 8.67 Canceled (11 ) $ — Outstanding on December 31, 2019 4,443,346 $ 14.80 5.0 $ 4,427 Options exercisable at: December 31, 2017 3,500,201 December 31, 2018 4,019,477 December 31, 2019 2,689,673 _____________________________ (1) The aggregate intrinsic value represents the amount by which the fair value of the underlying common stock ( $13.39 , $9.27 and $20.30 at December 31, 2019 , 2018 and 2017 , respectively) exceeds the option exercise price. |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Additional information relating to options outstanding at December 31, 2019 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 12/31/2019 12/31/2019 $9.86 - $11.83 2,082,717 3.7 $ 11.26 1,675,842 2.4 $ 11.35 $ — $11.83 - $13.80 — 0 $ — — 0 $ — — $13.80 - $15.77 519,278 4.4 $ 14.68 519,278 4.4 $ 14.68 — $15.77 - $17.74 — 0 $ — — 0 $ — — $17.74 - $19.71 1,841,351 6.6 $ 18.84 494,553 5.2 $ 18.12 — 4,443,346 5.0 $ 14.80 2,689,673 3.3 $ 13.24 $ 4,427 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contingencies | The following table lists the number of Individual Actions by state: State Number of Cases Florida 32 Illinois 8 Nevada 4 New York 2 Louisiana 2 West Virginia 2 Ohio 1 The activity in the Company’s accruals for the MSA and tobacco litigation for the three years ended December 31, 2019 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, 2017 $ 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 Expenses 165,471 990 166,461 — — — Change in MSA obligations capitalized as inventory 4,936 — 4,936 — — — Payments (171,960 ) (670 ) (172,630 ) — — — Reclassification to/(from) non-current liabilities (892 ) 3,338 2,446 892 (3,338 ) (2,446 ) Interest on withholding — 281 281 — 2,138 2,138 Balance as of December 31, 2019 $ 34,116 $ 4,249 $ 38,365 $ 17,275 $ 20,594 $ 37,869 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Year Ended December 31, 2019 2018 2017 Cash paid during the period for: Interest, including interest related to finance leases $ 118,974 $ 107,021 $ 117,453 Income taxes 44,184 26,529 26,885 Non-cash investing and financing activities: Issuance of stock dividend 703 671 644 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 — Net receivable from purchase of subsidiary — 497 — |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Description Total Quoted Prices in Active Markets for Identical Assets Assets: Money market funds (1) $ 307,655 $ 307,655 $ — $ — Commercial paper (1) 47,328 — 47,328 — Certificates of deposit (2) 2,193 — 2,193 — Money market funds securing legal bonds (2) 535 535 — — Investment securities at fair value Equity securities at fair value Marketable equity securities 23,819 23,819 — — Mutual funds invested in fixed-income securities 22,377 22,377 — — Total equity securities at fair value 46,196 46,196 — — Debt securities available for sale U.S. government securities 14,660 — 14,660 — Corporate securities 54,413 — 54,413 — U.S. government and federal agency 6,816 — 6,816 — Commercial mortgage-backed securities 382 — 382 — Commercial paper 5,887 — 5,887 — Index-linked U.S. bonds 779 — 779 — Foreign fixed-income securities 508 — 508 — Total debt securities available for sale 83,445 — 83,445 — Total investment securities at fair value 129,641 46,196 83,445 — Long-term investments Equity securities at fair value that qualify for the NAV practical expedient (3) 45,781 — — — Total $ 533,133 $ 354,386 $ 132,966 $ — Liabilities: Fair value of contingent liability $ 3,147 $ — $ — $ 3,147 Fair value of derivatives embedded within convertible debt 4,999 — — 4,999 Total $ 8,146 $ — $ — $ 8,146 (1) Amounts included in Cash and cash equivalents on the consolidated balance sheet, except for $4,423 that is included in current restricted assets and $3,160 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, 2018 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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. |
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, 2019 : 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 $ 4,999 Discounted cash flow Assumed annual 2019 stock dividend 5 % Assumed remaining cash dividends - Q4 2019 and Q1 2020 $0.40/$0.20 Stock price $ 13.39 Convertible trading price (as a percentage of par value) 103.94 % Maturity April 15, 2020 Volatility 36.94 % Risk-free rate Term structure of US Treasury Securities Implied credit spread 1.0% - 3.0% (2.0%) Fair value of contingent liability $ 3,147 Monte Carlo simulation model Estimated fair value of the Douglas Elliman reporting unit $ 271,500 Risk-free rate for a 3-year term 1.61 % Leverage-adjusted equity volatility of peer firms 35.56 % 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) $ 1.60 Stock price (1) $ 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 % (1) Amount has not been adjusted to give effect to the stock dividend in 2019 . |
Investment in real estate ventures subject to nonrecurring fair value measurements | The Company’s investment in real estate ventures subject to nonrecurring fair value measurements are as follows: Fair Value Measurement Using: Year Ended December 31, Quoted Prices in Active Markets for Identical Assets Description Impairment Charge Total Assets: Investments in real estate ventures $ 39,757 $ 18,335 $ — $ — $ 18,335 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017 was as follows: Real Corporate Tobacco Estate and Other Total 2019 Revenues $ 1,114,840 $ 788,871 $ — $ 1,903,711 Operating income (loss) 261,630 (1) (2,930 ) (27,565 ) 231,135 Equity in losses from real estate ventures — (19,288 ) — (19,288 ) Identifiable assets 336,566 666,550 (4) 501,973 (6) 1,505,089 Depreciation and amortization 7,824 9,033 994 17,851 Capital expenditures 4,173 8,276 126 12,575 2018 Revenues $ 1,111,094 $ 759,168 $ — $ 1,870,262 Operating income (loss) 246,527 (2) 3,435 (5) (25,913 ) 224,049 Equity in earnings from real estate ventures — 14,446 — 14,446 Identifiable assets 315,706 539,828 (4) 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 (3) 21,439 (26,191 ) 235,648 Equity in earnings from real estate ventures — 21,395 — 21,395 Identifiable assets 309,316 558,776 (4) 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 _____________________________ (1) Operating income includes $990 of litigation settlement and judgment expense. (2) Operating income includes $6,298 of income from MSA Settlement, and $685 of litigation settlement and judgment expense. (3) Operating income includes $2,721 of income from MSA Settlement, and $6,591 of litigation settlement and judgment expense. (4) Includes real estate investments accounted for under the equity method of accounting of $131,556 , $141,105 and $188,131 as of December 31, 2019 , 2018 and 2017 , respectively. (5) Operating income includes $2,469 of litigation settlement and judgment income. (6) Corporate and Other identifiable assets primarily includes cash of $272,459 , investment securities of $129,641 , equity securities at fair value that qualify for the NAV practical expedient of $45,781 , and equity-method investments of $15,942 as of December 31, 2019 . 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 . |
Quarterly Financial Results (_2
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Unaudited quarterly data for the years ended December 31, 2019 and 2018 are as follows: December 31, September 30, June 30, March 31, 2019 2019 2019 2019 Revenues $ 439,565 $ 504,790 $ 538,432 $ 420,924 Gross Profit 137,636 159,334 170,258 134,904 Operating income 45,581 66,720 76,244 42,590 Net income 10,667 36,008 39,307 15,033 Net income applicable to common shares attributed to Vector Group Ltd. 10,706 36,008 39,307 14,953 Per basic common share (1) : Net income applicable to common shares attributed to Vector Group Ltd. $ 0.06 $ 0.23 $ 0.25 $ 0.09 Per diluted common share (1) : Net income applicable to common shares attributed to Vector Group Ltd. $ 0.06 $ 0.23 $ 0.25 $ 0.08 _____________________________ (1) Per share computations include the impact of a 5% stock dividend paid on September 27, 2019 . 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, 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. $ 0.13 $ 0.07 $ 0.11 $ 0.04 Per diluted common share (1) : Net income applicable to common shares attributed to Vector Group Ltd. $ 0.13 $ 0.07 $ 0.11 $ 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, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. ASSETS: Current assets: Cash and cash equivalents $ 272,282 $ 27,178 $ 71,881 $ — $ 371,341 Investment securities at fair value 129,641 — — — 129,641 Accounts receivable - trade, net — 15,646 21,313 — 36,959 Intercompany receivables 44,043 — — (44,043 ) — Inventories — 98,762 — — 98,762 Income taxes receivable, net — — 95 (95 ) — Other current assets 9,159 9,021 26,731 — 44,911 Total current assets 455,125 150,607 120,020 (44,138 ) 681,614 Property, plant and equipment, net 425 33,816 47,919 — 82,160 Investments in real estate, net — — 28,317 — 28,317 Long-term investments (of which $45,781 were carried at fair value) 61,723 — — — 61,723 Investments in real estate ventures — — 131,556 — 131,556 Operating lease right of use assets 7,085 4,830 137,663 — 149,578 Investments in consolidated subsidiaries 420,353 238,040 — (658,393 ) — Goodwill and other intangible assets, net — 107,511 158,482 — 265,993 Other assets 15,080 46,416 42,652 — 104,148 Total assets $ 959,791 $ 581,220 $ 666,609 $ (702,531 ) $ 1,505,089 LIABILITIES AND STOCKHOLDERS' DEFICIENCY: Current liabilities: Current portion of notes payable and long-term debt $ 163,932 $ 45,210 $ 10,127 $ (10,000 ) $ 209,269 Current portion of fair value of derivatives embedded within convertible debt 4,999 — — — 4,999 Intercompany payables — 236 43,807 (44,043 ) — Income taxes payable, net 2,398 2,835 — (95 ) 5,138 Current payments due under the Master Settlement Agreement — 34,116 — — 34,116 Current operating lease liability 508 2,015 15,771 — 18,294 Other current liabilities 52,065 78,947 59,202 (897 ) 189,317 Total current liabilities 223,902 163,359 128,907 (55,035 ) 461,133 Notes payable, long-term debt and other obligations, less current portion 1,377,108 20,089 20,019 (20,000 ) 1,397,216 Non-current employee benefits 50,806 17,047 — — 67,853 Deferred income taxes, net (14,492 ) 22,620 25,567 — 33,695 Non-current operating lease liability 7,558 3,402 146,003 — 156,963 Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement 373 41,020 34,999 (3,147 ) 73,245 Total liabilities 1,645,255 267,537 355,495 (78,182 ) 2,190,105 Commitments and contingencies Stockholders' (deficiency) equity attributed to Vector Group Ltd. (685,464 ) 313,683 310,666 (624,349 ) (685,464 ) Non-controlling interest — — 448 — 448 Total stockholders' (deficiency) equity (685,464 ) 313,683 311,114 (624,349 ) (685,016 ) Total liabilities and stockholders' deficiency $ 959,791 $ 581,220 $ 666,609 $ (702,531 ) $ 1,505,089 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 ) — Other current assets 1,500 7,599 21,729 — 30,828 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 ) — Goodwill and other intangible assets, net — 107,511 159,100 — 266,611 Other assets 14,616 38,154 37,582 — 90,352 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 Intercompany payables — 479 37,912 (38,391 ) — Income taxes payable, net 5,257 1,263 — (1,268 ) 5,252 Current payments due under the Master Settlement Agreement — 36,561 — — 36,561 Other current liabilities 55,915 73,279 51,144 — 180,338 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, including 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 Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2019 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Revenues $ — $ 1,115,318 $ 788,871 $ (478 ) $ 1,903,711 Expenses: Cost of sales — 771,130 530,449 — 1,301,579 Operating, selling, administrative and general expenses 38,051 71,001 261,433 (478 ) 370,007 Litigation settlement and judgment expense (income) — 990 — — 990 Management fee expense — 11,971 — (11,971 ) — Operating (loss) income (38,051 ) 260,226 (3,011 ) 11,971 231,135 Other income (expenses): Interest expense (134,594 ) (3,838 ) (913 ) 897 (138,448 ) Change in fair value of derivatives embedded within convertible debt 26,425 — — — 26,425 Loss on extinguishment of debt (4,301 ) — — — (4,301 ) Equity in losses from real estate ventures — — (19,288 ) — (19,288 ) Equity in earnings in consolidated subsidiaries 182,959 6,185 — (189,144 ) — Management fee income 11,971 — — (11,971 ) — Other, net 30,193 5,340 5,929 (3,157 ) 38,305 Income (loss) before provision for income taxes 74,602 267,913 (17,283 ) (191,404 ) 133,828 Income tax benefit (expense) 26,372 (65,069 ) 5,884 — (32,813 ) Net income (loss) 100,974 202,844 (11,399 ) (191,404 ) 101,015 Net income attributed to non-controlling interest — — (41 ) — (41 ) Net income (loss) attributed to Vector Group Ltd. $ 100,974 $ 202,844 $ (11,440 ) $ (191,404 ) $ 100,974 Comprehensive income attributed to non-controlling interest $ — $ — $ (41 ) $ — $ (41 ) Comprehensive income (loss) attributed to Vector Group Ltd. $ 103,845 $ 204,269 $ (11,440 ) $ (192,829 ) $ 103,845 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 — 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 in consolidated subsidiaries 195,582 3,669 — (199,251 ) — Management fee income 11,509 — — (11,509 ) — Other, net 3,193 (997 ) 1,725 — 3,921 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 Parent/ Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Consolidating Adjustments Consolidated Vector Group 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 ) Changes 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 earnings in consolidated subsidiaries 200,480 15,077 — (215,557 ) — Management fee income 11,069 — — (11,069 ) — Other, net 576 2,101 1,324 — 4,001 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 Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2019 Subsidiary Consolidated Parent/ Subsidiary Non- Consolidating Vector Group Issuer Guarantors Guarantors Adjustments Ltd. Net cash provided by operating activities $ 166,855 $ 219,173 $ 6,654 $ (268,611 ) $ 124,071 Cash flows from investing activities: Sale of investment securities 21,879 — — — 21,879 Maturities of investment securities 68,859 — — — 68,859 Purchase of investment securities (87,766 ) — — — (87,766 ) Proceeds from sale or liquidation of long-term investments 8,256 — — — 8,256 Purchase of long-term investments (6,556 ) — (2,667 ) — (9,223 ) Investments in real estate ventures — — (52,529 ) — (52,529 ) Distributions from investments in real estate ventures — — 41,300 — 41,300 Increase in cash surrender value of life insurance policies (235 ) (484 ) — — (719 ) (Increase) decrease in restricted assets (29 ) 1,023 — — 994 Investments in subsidiaries (59,467 ) — — 59,467 — Proceeds from sale of fixed assets — 8 9 — 17 Purchase of subsidiaries — — (380 ) — (380 ) Capital expenditures (126 ) (4,173 ) (8,276 ) — (12,575 ) Investments in real estate, net — — (2,295 ) — (2,295 ) Pay downs of investment securities 1,083 — — — 1,083 Net cash used in investing activities (54,102 ) (3,626 ) (24,838 ) 59,467 (23,099 ) Cash flows from financing activities: Proceeds from issuance of debt 230,000 — — — 230,000 Deferred financing costs (9,297 ) (505 ) — — (9,802 ) Repayments of debt (292,390 ) (820 ) (209 ) — (293,419 ) Borrowings under revolver — 243,688 — — 243,688 Repayments on revolver — (239,526 ) — — (239,526 ) Capital contributions received — 1,225 58,242 (59,467 ) — Intercompany dividends paid — (215,728 ) (52,883 ) 268,611 — Dividends and distributions on common stock (238,249 ) — — — (238,249 ) Distributions to non-controlling interest — — (286 ) — (286 ) Tax withholdings related to net share settlements of stock option exercise (5,415 ) — — — (5,415 ) Other — — (216 ) — (216 ) Net cash (used in) provided by financing activities (315,351 ) (211,666 ) 4,648 209,144 (313,225 ) Net (decrease) increase in cash, cash equivalents and restricted cash (202,598 ) 3,881 (13,536 ) — (212,253 ) Cash, cash equivalents and restricted cash, beginning of period 474,880 23,849 93,000 — 591,729 Cash, cash equivalents and restricted cash, end of period $ 272,282 $ 27,730 $ 79,464 $ — $ 379,476 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 investments in 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 ) Repayments 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 Parent/ Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Consolidating Adjustments Consolidated Vector Group 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 investments in 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 ) Proceeds from sale of fixed assets — 76 — — 76 Purchase of subsidiaries — — (6,569 ) — (6,569 ) Investments in subsidiaries (38,458 ) — — 38,458 — 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 Repayments of debt (835,000 ) (1,882 ) (323 ) — (837,205 ) Deferred financing costs (19,200 ) — — — (19,200 ) 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 exercise of Vector options 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 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Components of Cash, cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 371,341 | $ 584,581 | $ 301,353 | |
Restricted cash and cash equivalents included in other current assets | 4,423 | 2,697 | 9,081 | |
Restricted cash and cash equivalents included in other assets | 3,712 | 4,451 | 503 | |
Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows | $ 379,476 | $ 591,729 | $ 310,937 | $ 398,578 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Concentration of Credit Risk Narrative) (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales Revenue | First Largest Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 17.00% | 18.00% | 18.00% |
Sales Revenue | Second Largest Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | 12.00% | 13.00% |
Accounts Receivable | First Largest Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 2.00% | 11.00% | |
Accounts Receivable | Second Largest Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 4.00% | 4.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Other Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts and cash discounts | $ 993 | $ 766 | |
Tax on payments of dividend equivalent rights | 8,967 | 8,696 | $ 7,655 |
Segment Reporting Information [Line Items] | |||
Shipping and handling fees and costs | 1,301,579 | 1,292,484 | 1,228,046 |
Tobacco and E-Cigarettes | |||
Segment Reporting Information [Line Items] | |||
Advertising costs | 3,751 | 3,672 | 3,712 |
Real Estate | |||
Segment Reporting Information [Line Items] | |||
Shipping and handling fees and costs | 530,449 | 505,233 | 477,278 |
Advertising costs | 22,917 | 23,424 | 19,412 |
Shipping and Handling | |||
Segment Reporting Information [Line Items] | |||
Shipping and handling fees and costs | $ 5,802 | $ 5,658 | $ 5,012 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Property, Plant and Equipment Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | $ (21,808) | $ (19,982) | $ (12,571) |
Accumulated Net Unrealized Investment Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | 530 | 108 | 6,097 |
Accumulated other comprehensive loss, tax effect | 200 | 60 | 3,687 |
Accumulated Defined Benefit Plans Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | (22,338) | (20,090) | (18,668) |
Accumulated other comprehensive loss, tax effect | $ 8,120 | $ 13,750 | $ 13,212 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Fair Value of Derivatives Embedded within Convertible Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Embedded Derivative [Line Items] | ||
Fair value of derivatives embedded within convertible debt | $ 4,999 | $ 31,424 |
Minimum | ||
Embedded Derivative [Line Items] | ||
Fair value of derivatives embedded within convertible debt | 4,993 | 31,371 |
Maximum | ||
Embedded Derivative [Line Items] | ||
Fair value of derivatives embedded within convertible debt | $ 5,005 | $ 31,519 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Schedule of Other, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Interest and dividend income | $ 12,590 | $ 11,349 | $ 7,391 |
Equity in earnings (losses) from investments | 17,000 | 3,158 | (765) |
Net gains (losses) recognized on investment securities | 7,440 | (9,570) | (296) |
Net periodic benefit cost other than the service costs | (2,298) | (1,020) | (1,960) |
Other income (expense) | 3,573 | 4 | (369) |
Other, net | $ 38,305 | $ 3,921 | $ 4,001 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Accounts payable | $ 10,222 | $ 13,144 |
Accrued promotional expenses | 35,900 | 37,940 |
Accrued excise and payroll taxes payable, net | 18,653 | 14,612 |
Accrued interest | 35,756 | 38,673 |
Commissions payable | 18,378 | 12,975 |
Accrued salaries and benefits | 29,464 | 30,228 |
Allowance for sales returns | 7,785 | 6,935 |
Other current liabilities | 33,159 | 25,831 |
Total other current liabilities | $ 189,317 | $ 180,338 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (New Accounting Pronouncements) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impact of adoption of new accounting standards | $ (1,550) | $ (4,576) |
Accumulated Deficit | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impact of adoption of new accounting standards | 3,147 | 6,354 |
Accumulated Deficit | Accounting Standards Update 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impact of adoption of new accounting standards | 4,697 | |
Accumulated Other Comprehensive Income | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impact of adoption of new accounting standards | $ (4,697) | $ (6,036) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 439,565 | $ 504,790 | $ 538,432 | $ 420,924 | $ 445,939 | $ 513,869 | $ 481,488 | $ 428,966 | $ 1,903,711 | $ 1,870,262 | $ 1,807,476 |
Tobacco | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,114,840 | 1,111,094 | 1,080,950 | ||||||||
Tobacco | Core Discount Brands - Pyramid, Grand Prix, Liggett Select, Eve and EAGLE 20’s | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,008,050 | 1,005,071 | 969,796 | ||||||||
Tobacco | Other Brands | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 106,790 | 106,023 | 111,154 | ||||||||
Real Estate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 788,871 | 759,168 | 727,364 | ||||||||
Total real estate revenues | 788,871 | 759,168 | 727,364 | ||||||||
Real Estate | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 376,600 | 366,032 | 401,304 | ||||||||
Real Estate | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 171,677 | 172,348 | 175,201 | ||||||||
Real Estate | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 126,181 | 114,788 | 90,758 | ||||||||
Real Estate | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 114,413 | 106,000 | 60,101 | ||||||||
Real Estate | Commission and other brokerage income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 669,489 | 651,171 | 633,093 | ||||||||
Real Estate | Commission and other brokerage income | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 293,009 | 285,325 | 332,319 | ||||||||
Real Estate | Commission and other brokerage income | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 164,724 | 166,100 | 168,834 | ||||||||
Real Estate | Commission and other brokerage income | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 106,587 | 99,720 | 79,547 | ||||||||
Real Estate | Commission and other brokerage income | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 105,169 | 100,026 | 52,393 | ||||||||
Real Estate | Development marketing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 72,925 | 64,287 | 52,061 | ||||||||
Real Estate | Development marketing | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 48,850 | 48,072 | 37,761 | ||||||||
Real Estate | Development marketing | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 0 | 252 | 402 | ||||||||
Real Estate | Development marketing | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 19,594 | 15,068 | 11,211 | ||||||||
Real Estate | Development marketing | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 4,481 | 895 | 2,687 | ||||||||
Real Estate | Property management income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 35,461 | 33,350 | 31,924 | ||||||||
Real Estate | Property management income | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 34,741 | 32,635 | 31,224 | ||||||||
Real Estate | Property management income | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 720 | 715 | 700 | ||||||||
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 | 6,233 | 5,281 | 5,265 | ||||||||
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 | 6,233 | 5,281 | 5,265 | ||||||||
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 | 784,108 | 754,089 | 722,343 | ||||||||
Real Estate | Total Douglas Elliman Realty revenue | New York City | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 376,600 | 366,032 | 401,304 | ||||||||
Real Estate | Total Douglas Elliman Realty revenue | Northeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 171,677 | 172,348 | 175,201 | ||||||||
Real Estate | Total Douglas Elliman Realty revenue | Southeast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 126,181 | 114,788 | 90,758 | ||||||||
Real Estate | Total Douglas Elliman Realty revenue | West | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 109,650 | 100,921 | 55,080 | ||||||||
Real Estate | Other real estate revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total real estate revenues | 4,763 | 5,079 | 5,021 | ||||||||
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 | $ 4,763 | $ 5,079 | $ 5,021 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||||||||||
Receivables, which are included in accounts receivable - trade, net | $ 2,129,000 | $ 2,129,000 | $ 2,050,000 | |||||||||
Contract costs, net, which are included in other current assets | 8,766,000 | 8,766,000 | 9,264,000 | |||||||||
Payables, which are included in other current liabilities | 1,663,000 | 1,663,000 | 1,082,000 | |||||||||
Contract liabilities, which are included in other current liabilities | 9,358,000 | 9,358,000 | 7,071,000 | |||||||||
Contract costs, net, which are included in other assets | 18,443,000 | 18,443,000 | 15,794,000 | |||||||||
Contract liabilities, which are included in other liabilities | 29,045,000 | $ 29,045,000 | $ 30,445,000 | |||||||||
Commercial leasing contracts, receivable and payable term expectation | 12 months | |||||||||||
Development marketing project period, minimum | 4 years | |||||||||||
Development marketing project period, maximum | 6 years | |||||||||||
Contract liabilities estimated to be recognized over next twelve months | 9,358,000 | $ 9,358,000 | ||||||||||
Revenue recognized on contract liabilities | $ 14,973,000 | |||||||||||
Revenue recognized relating to performance obligations satisfied or partially satisfied in prior periods | 0 | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||
Revenues | $ 439,565,000 | $ 504,790,000 | $ 538,432,000 | $ 420,924,000 | $ 445,939,000 | $ 513,869,000 | $ 481,488,000 | $ 428,966,000 | 1,903,711,000 | 1,870,262,000 | $ 1,807,476,000 | |
Contract asset reclassified to receivable | 79,000 | |||||||||||
Total cost of sales | 1,301,579,000 | $ 1,292,484,000 | $ 1,228,046,000 | |||||||||
Advance payments received from customer | 21,102,000 | |||||||||||
Contract liabilities increase | 887,000 | |||||||||||
Real Estate Commercial Leasing | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||
Total cost of sales | 581,000 | |||||||||||
Transferred over Time | ||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||
Contract asset reclassified to receivable | 3,522,000 | |||||||||||
Additional expense accruals | 2,570,000 | |||||||||||
Advance payments received from customer | 18,213,000 | |||||||||||
Contract liabilities increase | $ 2,151,000 |
Earnings Per Share Narrative (D
Earnings Per Share Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 27, 2019 | 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% | 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 | $ 8,967 | $ 8,696 | 7,655 | ||||
Tax on payments of dividend equivalent rights | 0 | 0 | 0 | ||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Effect of stock dividend | $ 703 | $ 671 | $ 644 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease right of use assets | $ 149,578 | |||
Operating lease liabilities | 175,257 | |||
Increase to accumulated deficit | $ 678,464 | $ 542,169 | ||
Lease renewal term | 5 years | |||
Lease termination term | 1 year | |||
Amortization and impairment | $ 21,088 | |||
Interest accretion | 17,489 | |||
Rental expense | 38,577 | $ 38,893 | $ 34,858 | |
One Lease, Lessor Affiliate of Significant Investor | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right of use assets | 1,288 | |||
Operating lease liabilities | 1,351 | |||
Rental expense | $ 458 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 14 years | |||
ASU 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right of use assets | $ 128,890 | |||
Operating lease liabilities | 153,676 | |||
Deferred rent | 22,881 | |||
Tenant improvements receivable | 355 | |||
Increase to accumulated deficit | $ 1,550 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 15, 2019 | |
Earnings Per Share [Abstract] | ||||||||||||
Net income attributed to Vector Group Ltd. | $ 10,706 | $ 36,008 | $ 39,307 | $ 14,953 | $ 21,074 | $ 12,002 | $ 17,818 | $ 7,211 | $ 100,974 | $ 58,105 | $ 84,572 | |
Income attributed to participating securities, basic | (7,464) | (7,016) | (6,071) | |||||||||
Net income available to common shares attributed to Vector Group Ltd., basic | 93,510 | 51,089 | 78,501 | |||||||||
Income attributable to 7.5% Variable Interest Senior Convertible Notes | (1,255) | 0 | 0 | |||||||||
Income attributed to participating securities, diluted | (7,464) | (7,016) | (6,071) | |||||||||
Net income available to common shares attributed to Vector Group Ltd., diluted | $ 92,255 | $ 51,089 | $ 78,501 | |||||||||
7.5% Variable Interest Senior Convertible Notes due 2019 | Variable Interest Senior Convertible Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 7.50% | 7.50% | 7.50% |
Leases - Lease Expense and Cash
Leases - Lease Expense and Cash Outflows from Operating and Finance Leases (Details) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 37,817 |
Short-term lease cost | 1,379 |
Variable lease cost | 3,149 |
Amortization | 224 |
Interest on lease liabilities | 15 |
Total lease cost | 42,584 |
Cash paid for amounts included in measurement of lease liabilities: | |
Operating cash flows from operating leases | 37,684 |
Operating cash flows from finance leases | 15 |
Financing cash flows from finance leases | 217 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 41,776 |
Finance leases | $ 159 |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted Earnings Per Share (in shares)) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Weighted-average shares for basic EPS | 146,633,036 | 146,362,270 | 145,987,002 |
Plus incremental shares related to convertible debt | 718,918 | 0 | 0 |
Plus incremental shares related to stock options and non-vested restricted stock | 16,509 | 122,542 | 284,817 |
Weighted-average shares for diluted EPS | 147,368,463 | 146,484,812 | 146,271,819 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating leases: | ||
Operating lease right-of-use assets | $ 149,578 | |
Current operating lease liability | 18,294 | $ 0 |
Non-current operating lease liability | 156,963 | |
Total operating lease liabilities | 175,257 | |
Finance leases: | ||
Finance lease at cost | 127 | |
Accumulated amortization | (19) | |
Finance lease net | 108 | |
Current portion of notes payable and long-term debt | 86 | |
Notes payable, long-term debt and other obligations, less current portion | 108 | |
Total finance lease liabilities | $ 194 | |
Weighted average remaining lease term: | ||
Operating leases | 8 years 5 months 15 days | |
Finance leases | 3 years 3 days | |
Weighted average discount rate: | ||
Operating leases | 10.75% | |
Finance leases | 8.61% | |
Financing lease equipment | ||
Finance leases: | ||
Finance lease at cost | $ 762 | |
Accumulated amortization | (674) | |
Finance lease net | $ 88 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities Excluded from Earnings Per Share) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiliitive securities excluded from computation (in shares) | 1,207,366 | 0 | 0 |
Weighted-average expense per share (in dollars per share) | $ 17.97 | $ 0 | $ 0 |
Weighted-average number of shares issuable upon conversion of debt | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiliitive securities excluded from computation (in shares) | 11,118,139 | 30,212,414 | 30,260,607 |
Weighted-average conversion price (in dollars per share) | $ 20.27 | $ 16.14 | $ 16.15 |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Financing Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 36,611 |
2021 | 35,453 |
2022 | 32,943 |
2023 | 30,866 |
2024 | 25,415 |
Thereafter | 117,040 |
Total lease payments | 278,328 |
Less imputed interest | (103,071) |
Total | 175,257 |
Finance Leases | |
2020 | 98 |
2021 | 44 |
2022 | 39 |
2023 | 31 |
2024 | 8 |
Thereafter | 0 |
Total lease payments | 220 |
Less imputed interest | (26) |
Total | $ 194 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Lease commitments, 2020 | $ 35,973 |
Lease commitments, 2021 | 29,917 |
Lease commitments, 2022 | 27,592 |
Lease commitments, 2023 | 25,185 |
Lease commitments, 2024 | 23,589 |
Lease commitments, Thereafter | 104,126 |
Lease commitments, Total | 246,382 |
Sublease Rentals, 2020 | 69 |
Sublease Rentals, 2021 | 0 |
Sublease Rentals, 2022 | 0 |
Sublease Rentals, 2023 | 0 |
Sublease Rentals, 2024 | 0 |
Sublease Rentals, Thereafter | 0 |
Sublease Rentals, Total | 69 |
Net, 2020 | 35,904 |
Net, 2021 | 29,917 |
Net, 2022 | 27,592 |
Net, 2023 | 25,185 |
Net, 2024 | 23,589 |
Net, Thereafter | 104,126 |
Net, Total | $ 246,313 |
Investment Securities At Fair_3
Investment Securities At Fair Value (Components of Investment Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities available for sale | $ 83,445 | $ 84,367 |
Equity securities at fair value | 46,196 | 47,202 |
Fair Value | 129,641 | 131,569 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities at fair value | 23,819 | 26,010 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds invested in fixed income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities at fair value | $ 22,377 | $ 21,192 |
Investment Securities At Fair_4
Investment Securities At Fair Value (Net Gains (Losses) Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net gains (losses) recognized on equity securities at fair value | $ 7,320 | $ (8,449) | |
Net gains (losses) recognized on debt and equity securities available for sale | 135 | (34) | |
Net gains (losses) recognized on debt and equity securities available for sale | $ 169 | ||
Gross realized losses on other-than-temporary impairments | 15 | 1,087 | 465 |
Net gains (losses) recognized on investment securities | $ 7,440 | $ (9,570) | $ (296) |
Investment Securities At Fair_5
Investment Securities At Fair Value (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Sale of investment securities | $ 21,879,000 | $ 18,628,000 | $ 28,761,000 |
Proceeds from investment securities sales | 28,761,000 | ||
Equity securities without readily determinable fair values | 6,200,000 | 5,000,000 | |
Impairment or other adjustments related to observable price changes | 0 | 0 | |
Corporate Securities and U.S. Government Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Maturities of investment securities | $ 69,943,000 | $ 26,330,000 | $ 103,730,000 |
Investment Securities At Fair_6
Investment Securities At Fair Value (Components of Debt Securities Available for Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 129,641 | $ 131,569 |
Marketable debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 82,714 | 84,199 |
Gross Unrealized Gains | 731 | 168 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 83,445 | $ 84,367 |
Investment Securities At Fair_7
Investment Securities At Fair Value (Maturity Dates of Marketable Debt Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | $ 83,445 | $ 84,367 |
U.S. Government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 14,660 | |
Under 1 Year | 4,914 | |
1 Year up to 5 Years | 9,746 | |
More than 5 Years | 0 | |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 54,413 | |
Under 1 Year | 25,824 | |
1 Year up to 5 Years | 28,589 | |
More than 5 Years | 0 | |
U.S. mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 6,816 | |
Under 1 Year | 3,337 | |
1 Year up to 5 Years | 3,479 | |
More than 5 Years | 0 | |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 382 | |
Under 1 Year | 382 | |
1 Year up to 5 Years | 0 | |
More than 5 Years | 0 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 5,887 | |
Under 1 Year | 5,887 | |
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 | 779 | |
Under 1 Year | 779 | |
1 Year up to 5 Years | 0 | |
More than 5 Years | 0 | |
Foreign fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 508 | |
Under 1 Year | 0 | |
1 Year up to 5 Years | 508 | |
More than 5 Years | 0 | |
Marketable debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Market Value | 83,445 | |
Under 1 Year | 41,123 | |
1 Year up to 5 Years | 42,322 | |
More than 5 Years | $ 0 |
Investment Securities At Fair_8
Investment Securities At Fair Value (Gross Realized Gains and Losses on Investment Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Gross realized gains on sales | $ 144 | $ 4 | |
Gross realized gains on sales | $ 479 | ||
Gross realized losses on sales | (9) | (38) | |
Gross realized losses on sales | (310) | ||
Net gains (losses) recognized on debt and equity securities available for sale | 135 | (34) | |
Net gains (losses) recognized on debt and equity securities available for sale | 169 | ||
Gross realized losses on other-than-temporary impairments | (15) | (1,087) | $ (465) |
Equity securities at fair value | 46,196 | 47,202 | |
Net losses recognized on investment securities | 7,320 | (8,449) | |
Net losses recognized equity securities | 1,526 | (808) | |
Net unrealized gains (losses) recognized on equity securities still held at the reporting date | 5,794 | (7,641) | |
Net losses recognized on equity securities at fair value that qualify for the NAV practical expedient | 6,619 | (517) | |
Long-term investments | |||
Debt Securities, Available-for-sale [Line Items] | |||
Net losses recognized on equity securities at fair value that qualify for the NAV practical expedient | 1,797 | 84 | |
Marketable equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity securities at fair value | 23,819 | 26,010 | |
Mutual funds invested in fixed income securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity securities at fair value | $ 22,377 | $ 21,192 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Leaf tobacco | $ 44,516 | $ 42,917 |
Other raw materials | 4,669 | 3,750 |
Work-in-process | 333 | 1,931 |
Finished goods | 71,183 | 63,937 |
Inventories at current cost | 120,701 | 112,535 |
LIFO adjustments | (21,939) | (21,538) |
Inventory, net | $ 98,762 | $ 90,997 |
Inventories (Narrartive) (Detai
Inventories (Narrartive) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory [Line Items] | ||
LIFO adjustments | $ 21,939 | $ 21,538 |
Capitalized MSA cost in finished goods inventory | 20,472 | 16,001 |
Inventories | ||
Inventory [Line Items] | ||
Federal excise tax in inventory | 27,676 | 26,419 |
Cost of Goods Sold | ||
Inventory [Line Items] | ||
Effect of liquidations of LIFO inventory | 46 | 567 |
Liggett | Inventories | ||
Inventory [Line Items] | ||
Purchase commitments | 20,693 | |
Leaf tobacco | ||
Inventory [Line Items] | ||
LIFO adjustments | 15,210 | 14,932 |
Other raw materials | ||
Inventory [Line Items] | ||
LIFO adjustments | 182 | 219 |
Work-in-process | ||
Inventory [Line Items] | ||
LIFO adjustments | 24 | 25 |
Finished goods | ||
Inventory [Line Items] | ||
LIFO adjustments | $ 6,523 | $ 6,362 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 274,676 | $ 268,514 | |
Less accumulated depreciation and amortization | (192,516) | (181,778) | |
Property, plant and equipment, net | 82,160 | 86,736 | |
Depreciation and amortization expense | 24,196 | 17,506 | $ 17,479 |
Liggett | Purchase commitments | |||
Property, Plant and Equipment [Line Items] | |||
Future machinery and equipment purchase commitments | 276 | ||
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,624 | 1,624 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 17,733 | 16,919 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 202,667 | 198,649 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 52,652 | $ 51,322 |
Long-Term Investments (Investme
Long-Term Investments (Investments) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)investment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities at fair value that qualify for the NAV practical expedient | $ 45,781 | $ 54,628 | |
Equity-method investments | 15,942 | 11,631 | |
Long-term investments | 61,723 | 66,259 | |
Proceeds from long-term equity method investment | 17,875 | 7,007 | $ 1,239 |
Proceeds from sale or liquidation of long-term investments | $ 8,256 | $ 19,487 | $ 966 |
NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
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 | 100.00% | ||
Proceeds from long-term equity method investment | $ 8,320 | ||
In-transit redemptions | 8,502 | ||
Gain on redemptions | $ 1,796 |
Long-Term Investments (Equity-M
Long-Term Investments (Equity-Method Investments) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 14, 2020 | Oct. 09, 2019 | Mar. 31, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 11, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity-method investments | $ 15,942 | $ 11,631 | ||||||
Proceeds from long-term equity method investment | 17,875 | 7,007 | $ 1,239 | |||||
Equity in earnings (losses) from investments | 17,000 | 3,158 | $ (765) | |||||
Indian Creek Investors LP (“Indian Creek”) | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity-method investments | $ 735 | $ 1,167 | ||||||
Equity method ownership percentage | 12.44% | |||||||
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 | $ 9,989 | $ 8,384 | ||||||
Equity method ownership percentage | 35.62% | |||||||
Quoted market value | $ 9,989 | |||||||
Optika Fund LLC (“Optika”) | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity-method investments | $ 4,785 | 0 | ||||||
Equity method ownership percentage | 9.14% | |||||||
Contributions to equity method investments | $ 5,000 | |||||||
Ladenburg Thalmann Financial Services Inc. (“LTS”) | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity-method investments | $ 433 | 2,080 | ||||||
Equity method ownership percentage | 10.22% | |||||||
Quoted market value | $ 52,865 | |||||||
Difference between carrying value and underlying equity | $ 24,992 | |||||||
Investment owned (in shares) | 15,191,205 | |||||||
Castle Brands | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity-method investments | $ 0 | 0 | ||||||
Cash tender offer (in dollars per share) | $ 1.27 | |||||||
Tendered common shares (in shares) | 12,895,017 | |||||||
Gain on sale of investment | $ 16,377 | |||||||
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 | |||||||
Equity Method Investee | LTS Common Stock | Common Stock | Ladenburg Thalmann Financial Services Inc. (“LTS”) | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Cash tender offer (in dollars per share) | $ 3.50 | |||||||
Equity Method Investee | LTS Common Stock | Common Stock | Subsequent Event | Ladenburg Thalmann Financial Services Inc. (“LTS”) | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Proceeds from common shares of LTS | $ 53,169 | |||||||
Equity Method Investee | LTS Preferred | Series A Cumulative Redeemable Preferred Stock | Ladenburg Thalmann Financial Services Inc. (“LTS”) | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Investment owned (in shares) | 240,000 | |||||||
Preferred stock dividend rate | 8.00% | |||||||
Liquidation preference (in dollars per share) | $ 25 | |||||||
Forecast | Equity Method Investee | LTS Preferred | Series A Cumulative Redeemable Preferred Stock | Ladenburg Thalmann Financial Services Inc. (“LTS”) | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Proceeds from common shares of LTS | $ 6,009 |
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, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Indian Creek and Boyar Value Fund | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment securities | $ 210,685 | $ 33,830 | ||||
Cash and cash equivalents | 26,088 | 521 | ||||
Other assets | 1,861 | 33 | ||||
Total assets | 238,634 | 34,384 | ||||
Other liabilities | 85,623 | 738 | ||||
Total liabilities | 85,623 | 738 | ||||
Partners’ capital | 153,011 | 33,646 | ||||
Total liabilities and partners’ capital | 238,634 | 34,384 | ||||
Revenues | 2,834 | 549 | $ 792 | |||
Expenses | 6,756 | 861 | 690 | |||
Gross profit | (3,922) | (312) | 102 | |||
Total net realized gain (loss) and net change in unrealized depreciation from investments | 18,822 | (5,781) | 100 | |||
Income from continuing operations | $ 14,900 | $ (6,093) | $ 202 | |||
Ladenburg Thalmann Financial Services | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cash and cash equivalents | $ 251,033 | $ 262,834 | ||||
Receivables from clearing brokers, note receivable and other receivable, net | 175,600 | 165,149 | ||||
Goodwill and intangible assets, net | 188,975 | 200,199 | ||||
Other assets | 202,516 | 172,409 | ||||
Total assets | 818,124 | 800,591 | ||||
Other liabilities | 73,380 | 37,658 | ||||
Accrued compensation, commissions and fees payable | 142,875 | 141,260 | ||||
Accounts payable and accrued liabilities | 37,197 | 50,122 | ||||
Notes payable, net of $5,881 and $115 unamortized discount in 2019 and 2018, respectively | 315,898 | 185,199 | ||||
Unamortized discount | 5,881 | 115 | ||||
Total liabilities | 569,350 | 414,239 | ||||
Preferred stock | 2 | 2 | ||||
Common stock | 15 | 20 | ||||
Additional paid-in capital | 317,735 | 487,752 | ||||
Accumulated deficit | (68,971) | (101,467) | ||||
Total controlling shareholders’ equity | 248,781 | 386,307 | ||||
Non-controlling interest | (7) | 45 | ||||
Partners’ capital | 248,774 | 386,352 | ||||
Total liabilities and partners’ capital | 818,124 | 800,591 | ||||
Revenues | 1,428,688 | 1,380,031 | $ 1,221,195 | |||
Expenses | 1,385,699 | 1,345,768 | 1,217,331 | |||
Gross profit | 42,989 | 34,263 | 3,864 | |||
Change in fair value of contingent consideration | (363) | (232) | 48 | |||
Income from continuing operations | 42,626 | 34,031 | 3,912 | |||
Net income | $ 31,779 | $ 30,858 | $ 1,669 |
New Valley LLC (Douglas Elliman
New Valley LLC (Douglas Elliman Acquisition) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Purchase of subsidiaries | $ 380 | $ 10,404 | $ 6,569 | |
Contingent consideration liability | $ 3,147 | |||
Douglas Elliman | ||||
Business Acquisition [Line Items] | ||||
Voting interest acquired | 29.41% | 29.41% | ||
Consideration | $ 40,000 | |||
Purchase of subsidiaries | 10,000 | |||
Liabilities incurred | 30,000 | |||
Contingent consideration liability | $ 6,304 | $ 6,304 | ||
Ownership interest | 100.00% | 100.00% | ||
Previous ownership interest | 70.59% | 70.59% |
New Valley LLC (Investment in R
New Valley LLC (Investment in Real Estate Ventures) (Details) $ in Thousands | Nov. 01, 2019USD ($) | Dec. 31, 2019USD ($)venture | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2019USD ($) | Apr. 30, 2019USD ($) | Feb. 28, 2019USD ($) |
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 131,556 | $ 141,105 | |||||
Total contributions | 52,529 | 9,728 | $ 38,807 | ||||
Distributions from real estate ventures, return on capital | 7,028 | 25,935 | 37,995 | ||||
Distributions from real estate ventures | 41,300 | 54,233 | 61,718 | ||||
Equity in earnings (loss) from real estate ventures | (19,288) | 14,446 | 21,395 | ||||
Condominium and Mixed Use Development | New York City SMSA | |||||||
Schedule of Investments [Line Items] | |||||||
Impairment of real estate, net | 39,717 | ||||||
Condominium and Mixed Use Development | All other U.S. areas | |||||||
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 | 131,556 | 141,105 | |||||
Total contributions | 52,529 | 9,728 | |||||
Total distributions from real estate ventures | 48,328 | 80,168 | |||||
Equity in earnings (loss) from real estate ventures | (19,288) | 14,446 | $ 21,395 | ||||
Total maximum exposure to loss | 148,785 | ||||||
Interest costs capitalized | $ 5,480 | 8,580 | |||||
New Valley LLC | Variable Interest Entity, Primary Beneficiary | |||||||
Schedule of Investments [Line Items] | |||||||
Number of variable interest entities | venture | 2 | ||||||
VIE's assets | $ 897 | $ 1,387 | |||||
New Valley LLC | Monad Terrace | |||||||
Schedule of Investments [Line Items] | |||||||
Equity method ownership percentage | 18.00% | 18.00% | 24.00% | ||||
New Valley LLC | 352 6th Avenue LLC | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 500 | ||||||
Equity method ownership percentage | 37.00% | ||||||
Total maximum exposure to loss | $ 540 | ||||||
New Valley LLC | Meatpacking Plaza | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 10,018 | ||||||
Equity method ownership percentage | 16.90% | ||||||
Total maximum exposure to loss | 9,524 | ||||||
New Valley LLC | 9 DeKalb | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 5,000 | ||||||
Equity method ownership percentage | 4.90% | ||||||
Total maximum exposure to loss | 5,334 | ||||||
New Valley LLC | Park on Fifth (500 Alton Rd) | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 14,000 | ||||||
Equity method ownership percentage | 38.90% | ||||||
Total maximum exposure to loss | 14,430 | ||||||
New Valley LLC | West Hialeah | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 12,522 | ||||||
Equity method ownership percentage | 77.80% | ||||||
Total maximum exposure to loss | $ 12,522 | ||||||
New Valley LLC | Condominium and Mixed Use Development | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | 106,920 | $ 96,399 | |||||
Total contributions | 51,753 | 4,135 | |||||
Total distributions from real estate ventures | 9,234 | 39,207 | |||||
Equity in earnings (loss) from real estate ventures | (37,478) | (1,986) | $ 33,515 | ||||
Total maximum exposure to loss | 110,050 | ||||||
New Valley LLC | Condominium and Mixed Use Development | New York City SMSA | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | 51,078 | 65,007 | |||||
Total contributions | 21,760 | 4,135 | |||||
Total distributions from real estate ventures | 7,955 | 39,207 | |||||
Equity in earnings (loss) from real estate ventures | (31,011) | (923) | 35,578 | ||||
Impairment of real estate, net | 39,757 | ||||||
Total maximum exposure to loss | $ 54,208 | ||||||
New Valley LLC | Condominium and Mixed Use Development | New York City SMSA | Minimum | |||||||
Schedule of Investments [Line Items] | |||||||
Equity method ownership percentage | 3.10% | ||||||
New Valley LLC | Condominium and Mixed Use Development | New York City SMSA | Maximum | |||||||
Schedule of Investments [Line Items] | |||||||
Equity method ownership percentage | 49.50% | ||||||
New Valley LLC | Condominium and Mixed Use Development | All other U.S. areas | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 55,842 | 31,392 | |||||
Total contributions | 29,993 | 0 | |||||
Total distributions from real estate ventures | 1,279 | 0 | |||||
Equity in earnings (loss) from real estate ventures | (6,467) | (1,063) | (2,063) | ||||
Impairment of real estate, net | 10,174 | 2,862 | |||||
Total maximum exposure to loss | $ 55,842 | ||||||
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 | 77.80% | ||||||
New Valley LLC | Apartment Buildings | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 0 | 0 | |||||
Total contributions | 0 | 975 | |||||
Total distributions from real estate ventures | 79 | 27,991 | |||||
Equity in earnings (loss) from real estate ventures | 79 | 17,631 | (7,235) | ||||
New Valley LLC | Apartment Buildings | New York City SMSA | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 0 | 0 | |||||
Equity method ownership percentage | 45.40% | ||||||
Total contributions | $ 0 | 975 | |||||
Total distributions from real estate ventures | 0 | 27,569 | |||||
Equity in earnings (loss) from real estate ventures | 0 | 17,467 | (6,703) | ||||
New Valley LLC | Apartment Buildings | All other U.S. areas | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | 0 | 0 | |||||
Total distributions from real estate ventures | 79 | 422 | |||||
Equity in earnings (loss) from real estate ventures | $ 79 | 164 | (532) | ||||
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 | $ 4,623 | 18,116 | |||||
Total contributions | 172 | 168 | |||||
Total distributions from real estate ventures | 21,787 | 1,762 | |||||
Equity in earnings (loss) from real estate ventures | 8,122 | (2,973) | (5,115) | ||||
Total maximum exposure to loss | 4,623 | ||||||
New Valley LLC | Hotels | One New York SMSA Venture | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | 267 | ||||||
New Valley LLC | Hotels | New York City SMSA | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | 2,462 | 15,782 | |||||
Total contributions | 172 | 168 | |||||
Total distributions from real estate ventures | 21,572 | 1,542 | |||||
Equity in earnings (loss) from real estate ventures | 8,081 | $ (2,727) | (5,347) | ||||
Total maximum exposure to loss | $ 2,462 | ||||||
New Valley LLC | Hotels | New York City SMSA | Park Lane Hotel | |||||||
Schedule of Investments [Line Items] | |||||||
Percent of interest in real estate venture sold | 80.00% | ||||||
Equity method ownership percentage | 1.04% | 5.20% | |||||
Distributions from real estate ventures, return on capital | $ 20,788 | ||||||
Equity in earnings (loss) from real estate ventures | $ 10,328 | ||||||
New Valley LLC | Hotels | New York City SMSA | Minimum | |||||||
Schedule of Investments [Line Items] | |||||||
Equity method ownership percentage | 1.00% | ||||||
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 | $ 2,161 | $ 2,334 | |||||
Equity method ownership percentage | 49.00% | ||||||
Total distributions from real estate ventures | $ 215 | 220 | |||||
Equity in earnings (loss) from real estate ventures | 41 | (246) | 232 | ||||
Total maximum exposure to loss | 2,161 | ||||||
New Valley LLC | Commercial | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | 9,486 | 8,920 | |||||
Total distributions from real estate ventures | 266 | 10,148 | |||||
Equity in earnings (loss) from real estate ventures | 774 | 1,046 | (339) | ||||
Total maximum exposure to loss | 9,486 | ||||||
New Valley LLC | Commercial | New York City SMSA | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 1,852 | 1,867 | |||||
Equity method ownership percentage | 49.00% | ||||||
Total distributions from real estate ventures | $ 16 | 9 | |||||
Equity in earnings (loss) from real estate ventures | 1 | (562) | (742) | ||||
Total maximum exposure to loss | 1,852 | ||||||
New Valley LLC | Commercial | All other U.S. areas | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | $ 7,634 | 7,053 | |||||
Equity method ownership percentage | 1.60% | ||||||
Total distributions from real estate ventures | $ 250 | 10,139 | |||||
Equity in earnings (loss) from real estate ventures | 773 | 1,608 | 403 | ||||
Total maximum exposure to loss | 7,634 | ||||||
New Valley LLC | Other | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | 10,527 | 17,670 | |||||
Total contributions | 604 | 4,450 | |||||
Total distributions from real estate ventures | 16,962 | 1,060 | |||||
Equity in earnings (loss) from real estate ventures | 9,215 | 728 | 569 | ||||
Total maximum exposure to loss | 24,626 | ||||||
New Valley LLC | Other | One New York SMSA Venture | |||||||
Schedule of Investments [Line Items] | |||||||
Investments in real estate ventures | 0 | 1,783 | |||||
Total distributions from real estate ventures | 2,524 | ||||||
Distributions from real estate ventures | 27,569 | ||||||
Equity in earnings (loss) from real estate ventures | $ 740 | 17,467 | (6,701) | ||||
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 | $ 18,952 | $ 20,118 | $ 10,888 | ||||
Douglas Elliman Realty, LLC | Innova Risk Management | |||||||
Schedule of Investments [Line Items] | |||||||
Percent of interest in real estate venture sold | 50.00% | ||||||
Distributions from real estate ventures, return on capital | $ 8,732 | ||||||
Potential earn out | $ 1,000 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condominium and Mixed Use Development | |||
Income Statement | |||
Revenues | $ 208,481 | $ 365,890 | $ 176,306 |
Costs of goods sold | 76,162 | 71,623 | 93,766 |
Other expenses | 132,931 | 44,211 | 47,590 |
Income from continuing operations | (612) | 250,056 | 34,950 |
Balance Sheets | |||
Investment in real estate | 3,569,915 | 2,541,994 | |
Total assets | 3,628,402 | 2,701,652 | |
Total debt | 2,593,606 | 1,798,296 | |
Total liabilities | 2,896,607 | 2,036,431 | |
Non-controlling interest | 69,787 | 150,897 | |
Apartment & Office Buildings | |||
Income Statement | |||
Revenues | 70,862 | 44,366 | 66,588 |
Other expenses | 67,094 | 105,899 | 64,431 |
Income from continuing operations | 3,768 | (61,533) | 2,157 |
Balance Sheets | |||
Investment in real estate | 545,400 | 558,268 | |
Total assets | 562,879 | 574,664 | |
Total debt | 402,526 | 412,447 | |
Total liabilities | 410,723 | 420,164 | |
Non-controlling interest | 114,193 | 115,952 | |
Hotels | |||
Income Statement | |||
Revenues | 147,446 | 171,949 | 75,862 |
Costs of goods sold | 5,399 | 4,522 | 4,035 |
Other expenses | 220,045 | 268,007 | 112,124 |
Income from continuing operations | (77,998) | (100,580) | (40,297) |
Balance Sheets | |||
Investment in real estate | 1,017,810 | 1,019,133 | |
Total assets | 1,133,697 | 1,126,598 | |
Total debt | 778,194 | 696,200 | |
Total liabilities | 816,118 | 736,101 | |
Non-controlling interest | 284,298 | 348,451 | |
Commercial | |||
Income Statement | |||
Revenues | 31,980 | 56,773 | 6,636 |
Other expenses | 7,724 | 11,647 | 3,294 |
Income from continuing operations | 24,256 | 45,126 | 3,342 |
Balance Sheets | |||
Investment in real estate | 52,384 | 53,193 | |
Total assets | 70,169 | 70,395 | |
Total debt | 55,625 | 55,625 | |
Total liabilities | 54,342 | 54,645 | |
Other | |||
Income Statement | |||
Revenues | 4,008 | 4,823 | 3,442 |
Other expenses | 13,515 | 6,382 | 5,069 |
Income from continuing operations | (9,507) | (1,559) | (1,627) |
Balance Sheets | |||
Investment in real estate | 1,054,134 | 710,549 | |
Total assets | 1,192,149 | 1,152,124 | |
Total debt | 671,845 | 658,592 | |
Total liabilities | 850,587 | 665,463 | |
Non-controlling interest | 263,438 | 392,933 | |
10 Madison Square West | |||
Income Statement | |||
Revenues | 281 | 28,539 | 197,157 |
Costs of goods sold | 0 | 24,250 | 116,120 |
Other expenses | 8,877 | (4,236) | 11,649 |
Income from continuing operations | (8,596) | 8,525 | 69,388 |
Balance Sheets | |||
Investment in real estate | 4,989 | 2,369 | |
Total assets | 15,186 | 15,071 | |
Total debt | 3,275 | 3,319 | |
Total liabilities | 3,575 | 3,616 | |
Non-controlling interest | 10,228 | 10,091 | |
1 QPS Tower | |||
Income Statement | |||
Revenues | 386,470 | 14,625 | 4,216 |
Costs of goods sold | 220,316 | 0 | 0 |
Other expenses | 141,742 | 26,357 | 18,508 |
Income from continuing operations | 24,412 | (11,732) | (14,292) |
Balance Sheets | |||
Investment in real estate | 0 | 215,956 | |
Total assets | 0 | 220,350 | |
Total debt | 0 | 209,602 | |
Total liabilities | 0 | 212,640 | |
Greenwich | |||
Income Statement | |||
Revenues | 5 | 28 | (768) |
Other expenses | 6,658 | 146,286 | 2,696 |
Income from continuing operations | (6,653) | (146,258) | $ (3,464) |
Balance Sheets | |||
Investment in real estate | 504,221 | 403,815 | |
Total assets | 512,038 | 419,518 | |
Total debt | 460,124 | 408,779 | |
Total liabilities | 544,687 | 445,514 | |
Non-controlling interest | $ (23,942) | $ (19,064) |
New Valley LLC (Guarantees and
New Valley LLC (Guarantees and Commitments) (Details) - New Valley LLC $ in Thousands | Dec. 31, 2019USD ($) |
Schedule of Investments [Line Items] | |
Additional capital commitments | $ 14,099 |
Another Project | Payment Guarantee | |
Schedule of Investments [Line Items] | |
Maximum exposure on guarantees | $ 3,578 |
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 ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Apr. 30, 2009aroomlothole | Mar. 31, 2008a | |
Schedule of Investments [Line Items] | ||||||
Real estate investment, net | $ 28,317 | $ 26,220 | ||||
New Valley LLC | ||||||
Schedule of Investments [Line Items] | ||||||
Real estate investment, net | 28,317 | 26,220 | ||||
New Valley LLC | Escena | ||||||
Schedule of Investments [Line Items] | ||||||
Land and Land Improvements | 8,910 | 8,910 | ||||
Building and building improvements | 1,926 | 1,900 | ||||
Other | 1,659 | 2,162 | ||||
Investments in real estate, gross | 12,495 | 12,972 | ||||
Less accumulated depreciation | (2,523) | (2,802) | ||||
Real estate investment, net | 9,972 | 10,170 | ||||
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 | 862 | 576 | $ 868 | |||
New Valley LLC | Sagaponack | ||||||
Schedule of Investments [Line Items] | ||||||
Real estate investment, net | $ 18,345 | $ 16,050 | ||||
Payments to acquire real estate | $ 12,502 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 78,008,000 | $ 77,568,000 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill impairment | 0 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Total goodwill and other intangible assets, net | 265,993,000 | 266,611,000 | |
Finite-lived intangible assets, gross | 4,689,000 | 15,168,000 | |
Less: accumulated amortization on amortizable intangibles | (4,215,000) | (13,636,000) | |
Finite-lived intangible assets, net | 474,000 | 1,532,000 | |
Unfavorable leases | 0 | 4,022,000 | |
Less: Accumulated amortization on amortizable intangibles | 0 | (3,076,000) | |
Unfavorable leases, net | 0 | 946,000 | |
Amortization expense | 182,000 | 806,000 | $ 871,000 |
Amortization of unfavorable lease | 369,000 | 502,000 | |
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 | $ 0 | 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 | $ 4,689,000 | $ 1,724,000 | |
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, 2019 | Jan. 15, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||
Notes payable, long-term debt and other obligations | $ 1,631,387 | $ 1,666,445 | |||||
Less: Debt issuance costs | (24,902) | (23,614) | |||||
Total notes payable, long-term debt and other obligations | 1,606,485 | 1,642,831 | |||||
Less: Current maturities | (209,269) | (256,134) | |||||
Amount due after one year | 1,397,216 | 1,386,697 | |||||
Fair value of derivatives embedded within convertible debt | 0 | 24,789 | |||||
Senior Notes | 6.125% Senior Secured Notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable, long-term debt and other obligations | $ 850,000 | 850,000 | |||||
Interest rate | 6.125% | 6.125% | |||||
Senior Notes | 10.5% Senior Notes due 2026, net of unamortized discount of $3,392 and $0 | |||||||
Debt Instrument [Line Items] | |||||||
Amount due after one year | $ 555,000 | ||||||
Interest rate | 10.50% | 10.50% | |||||
Variable Interest Senior Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount | $ 5,276 | 32,824 | $ 122,940 | $ 179,727 | |||
Variable Interest Senior Convertible Debt | 10.5% Senior Notes due 2026, net of unamortized discount of $3,392 and $0 | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable, long-term debt and other obligations | 551,608 | 325,000 | |||||
Variable Interest Senior Convertible Debt | 5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $5,276 and $29,465 | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable, long-term debt and other obligations | 164,334 | 202,535 | |||||
Amount due after one year | 169,610 | ||||||
Premium | 5,276 | 29,465 | |||||
Unamortized discount | 5,276 | 29,465 | 53,687 | 71,247 | |||
Fair value of derivatives embedded within convertible debt | $ 4,999 | 24,789 | |||||
Interest rate | 5.50% | ||||||
Variable Interest Senior Convertible Debt | 7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $0 and $3,359 | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable, long-term debt and other obligations | $ 0 | 226,641 | |||||
Premium | 0 | 3,359 | |||||
Unamortized discount | $ 0 | 3,359 | $ 69,253 | $ 108,480 | |||
Fair value of derivatives embedded within convertible debt | 6,635 | ||||||
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 | $ 34,952 | 28,381 | |||||
Line of Credit | Term loan under credit facility | Liggett | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable, long-term debt and other obligations | 0 | 2,409 | |||||
Equipment loans | Liggett | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable, long-term debt and other obligations | 347 | 1,039 | |||||
Other | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable, long-term debt and other obligations | $ 30,146 | $ 30,440 |
Notes Payable, Long-Term Debt_4
Notes Payable, Long-Term Debt and Other Obligations (Notes Payable Narrative) (Details) | Nov. 18, 2019USD ($) | Nov. 02, 2018USD ($) | Jan. 27, 2017USD ($)shares | Mar. 24, 2014USD ($) | Nov. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)series | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 15, 2019 | Nov. 30, 2018 | Nov. 30, 2017 |
Debt Instrument [Line Items] | |||||||||||||
Notes payable, long-term debt and other obligations, less current portion | $ 1,386,697,000 | $ 1,397,216,000 | $ 1,386,697,000 | ||||||||||
Loss on extinguishment of debt | $ 4,301,000 | 4,066,000 | $ 34,110,000 | ||||||||||
Shares issued (in shares) | shares | 2,315,250 | ||||||||||||
Senior Notes | 7.75% Senior Secured Notes Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 7.75% | ||||||||||||
Repurchased face amount | $ 835,000,000 | ||||||||||||
Senior Notes | 6.125% Senior Secured Notes due 2025 | |||||||||||||
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 | ||||||||||||
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% | 10.50% | |||||||||||
Notes payable, long-term debt and other obligations, less current portion | $ 555,000,000 | ||||||||||||
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 | $ 230,000,000 | $ 325,000,000 | |||||||||||
Net proceeds from issuance of debt | $ 220,400,000 | $ 315,000,000 | |||||||||||
Redemption price | 101.00% | ||||||||||||
Variable Interest Senior Convertible Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of series outstanding | series | 1 | ||||||||||||
Variable Interest Senior Convertible Debt | 7.5% Variable Interest Senior Convertible Notes due 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 7.50% | 7.50% | |||||||||||
Principal amount | $ 230,000,000 | ||||||||||||
Interest expense | $ 8,102,000 | ||||||||||||
Variable Interest Senior Convertible Debt | 5.5% Variable Interest Senior Convertible Notes due 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 5.50% | ||||||||||||
Notes payable, long-term debt and other obligations, less current portion | $ 169,610,000 | ||||||||||||
Principal amount | $ 258,750,000 | ||||||||||||
Net proceeds from issuance of debt | $ 250,300,000 | ||||||||||||
Payments for convertible debt | $ 63,859,000 | 27,141,000 | |||||||||||
Loss on extinguishment of debt | $ 4,301,000 | $ 4,066,000 | |||||||||||
Cancelled repurchased notes principal | $ 89,140,000 | ||||||||||||
Redemption price | 102.18% | 101.15% | |||||||||||
Repurchased face amount | $ 62,390,000 | $ 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% | ||||||||||||
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 (Conversion Rates on Convertible Debt) (Details) - Variable Interest Senior Convertible Debt | 12 Months Ended | |
Dec. 31, 2019$ / shares | Dec. 31, 2018$ / shares | |
7.5% Variable Interest Senior Convertible Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Conversion price (in dollars per share) | $ 0 | $ 13.14 |
Conversion ratio | 0 | 76.0595 |
5.5% Variable Interest Senior Convertible Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Conversion price (in dollars per share) | $ 20.27 | $ 20.27 |
Conversion ratio | 49.3363 | 49.3363 |
Notes Payable, Long-Term Debt_6
Notes Payable, Long-Term Debt and Other Obligations (Other Schedules) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Interest expense associated with embedded derivatives | $ 18,512 | $ 55,769 | $ 37,210 |
Fair Value Of Derivatives [Roll Forward] | |||
Loss (gain) from changes in fair value of embedded derivatives | (26,425) | (44,989) | (35,919) |
Unamortized Debt Discount Reconciliation [Roll Forward] | |||
Amortization of beneficial conversion feature | (6,301) | (30,854) | (19,577) |
Variable Interest Senior Convertible Debt | |||
Unamortized Debt Discount Reconciliation [Roll Forward] | |||
Beginning balance of unamortized discount | 32,824 | 122,940 | 179,727 |
Amortization of embedded derivatives | (18,512) | (55,769) | (37,210) |
Amortization of beneficial conversion feature | (6,301) | (30,854) | (19,577) |
Ending balance of unamortized discount | 5,276 | 32,824 | 122,940 |
Variable Interest Senior Convertible Debt | Embedded Derivatives | |||
Fair Value Of Derivatives [Roll Forward] | |||
Beginning balance of derivative liability fair value | 31,424 | 76,413 | 112,332 |
Loss (gain) from changes in fair value of embedded derivatives | (26,425) | (44,989) | (35,919) |
Beginning balance of derivative liability fair value | 4,999 | 31,424 | 76,413 |
Variable Interest Senior Convertible Debt | 7.5% Variable Interest Senior Convertible Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Interest expense associated with embedded derivatives | 2,031 | 39,845 | 23,720 |
Fair Value Of Derivatives [Roll Forward] | |||
Loss (gain) from changes in fair value of embedded derivatives | (6,635) | (24,530) | (21,734) |
Unamortized Debt Discount Reconciliation [Roll Forward] | |||
Beginning balance of unamortized discount | 3,359 | 69,253 | 108,480 |
Amortization of embedded derivatives | (2,031) | (39,845) | (23,720) |
Amortization of beneficial conversion feature | (1,328) | (26,049) | (15,507) |
Ending balance of unamortized discount | 0 | 3,359 | 69,253 |
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 | 6,635 | 31,165 | 52,899 |
Loss (gain) from changes in fair value of embedded derivatives | (6,635) | (24,530) | (21,734) |
Beginning balance of derivative liability fair value | 0 | 6,635 | 31,165 |
Variable Interest Senior Convertible Debt | 5.5% Variable Interest Senior Convertible Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Interest expense associated with embedded derivatives | 16,481 | 15,924 | 13,490 |
Fair Value Of Derivatives [Roll Forward] | |||
Loss (gain) from changes in fair value of embedded derivatives | (19,790) | (20,459) | (14,185) |
Unamortized Debt Discount Reconciliation [Roll Forward] | |||
Beginning balance of unamortized discount | 29,465 | 53,687 | 71,247 |
Amortization of embedded derivatives | (16,481) | (15,924) | (13,490) |
Amortization of beneficial conversion feature | (4,973) | (4,805) | (4,070) |
Ending balance of unamortized discount | 5,276 | 29,465 | 53,687 |
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 | (2,735) | (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 | 24,789 | 45,248 | 59,433 |
Loss (gain) from changes in fair value of embedded derivatives | (19,790) | (20,459) | (14,185) |
Beginning balance of derivative liability fair value | $ 4,999 | $ 24,789 | $ 45,248 |
Notes Payable, Long-Term Debt_7
Notes Payable, Long-Term Debt and Other Obligations (Revolving Credit and Other Narrative) (Details) - USD ($) | Dec. 31, 2018 | Jan. 14, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 18, 2019 | Oct. 31, 2019 | Nov. 30, 2018 | Nov. 02, 2018 | Nov. 30, 2017 | Jan. 27, 2017 | Jan. 31, 2015 |
Debt Instrument [Line Items] | ||||||||||||
Purchase of subsidiaries | $ 380,000 | $ 10,404,000 | $ 6,569,000 | |||||||||
Liggett | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Required minimum borrowing availability 30 days prior to payment of dividend | $ 5,000,000 | |||||||||||
Line of Credit | Liggett | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility, maximum borrowing capacity | $ 60,000,000 | |||||||||||
Eligible trade receivables percent | 85.00% | |||||||||||
Eligible trade receivables less certain reserves additional amount | $ 10,000,000 | |||||||||||
Eligible inventory percent | 80.00% | |||||||||||
Inventory multiplier percent | 65.00% | |||||||||||
Appraised liquidation of inventory percent | 85.00% | |||||||||||
Fair market value of eligible real property percent | 60.00% | |||||||||||
Interest rate at end of period | 4.01% | |||||||||||
Minimum EBITDA ratio on trailing 12-month 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 | $ 34,952,000 | |||||||||||
Current borrowing capacity | $ 25,048,000 | |||||||||||
Line of Credit | Liggett | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.25% | |||||||||||
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 | |||||||||||
Term loan under credit facility | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount | $ 3,600,000 | |||||||||||
6.125% Senior Secured Notes due 2025 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount | $ 850,000,000 | |||||||||||
Interest rate | 6.125% | 6.125% | ||||||||||
10.5% Senior Notes due 2026 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount | $ 230,000,000 | $ 325,000,000 | ||||||||||
Interest rate | 10.50% | 10.50% |
Notes Payable, Long-Term Debt_8
Notes Payable, Long-Term Debt and Other Obligations (Fair Value of Notes Payable and Long Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 1,651,665 | $ 1,565,459 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 1,631,387 | 1,666,445 |
Senior Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 1,401,608 | 1,175,000 |
Senior Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 1,409,920 | 1,034,500 |
Variable Interest Senior Convertible Debt | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 164,334 | 429,176 |
Variable Interest Senior Convertible Debt | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 176,289 | 468,704 |
Liggett and other | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 65,445 | 62,269 |
Liggett and other | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 65,456 | $ 62,255 |
Notes Payable, Long-Term Debt_9
Notes Payable, Long-Term Debt and Other Obligations (Schedule of Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 Principal | $ 214,947 | |
2020 Unamortized Discount | 5,276 | |
2020 Net | 209,671 | |
2021 Principal | 10,026 | |
2021 Unamortized Discount | 0 | |
2021 Net | 10,026 | |
2022 Principal | 10,045 | |
2022 Unamortized Discount | 0 | |
2022 Net | 10,045 | |
2023 Principal | 29 | |
2023 Unamortized Discount | 0 | |
2023 Net | 29 | |
2024 Principal | 8 | |
2024 Unamortized Discount | 0 | |
2024 Net | 8 | |
Thereafter Principal | 1,405,000 | |
Thereafter Unamortized Discount | 3,392 | |
Thereafter Net | 1,401,608 | |
Notes payable, long-term debt and other obligations | 1,640,055 | |
Unamortized Discount/ (Premium) | 8,668 | |
Total notes payable, long-term debt and other obligations | $ 1,631,387 | $ 1,666,445 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)employeeplan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit plans | plan | 4 | ||
Accumulated benefit obligations in excess of aggregate projected benefit obligation | $ 59,631,000 | $ 53,865,000 | |
Accumulated benefit obligations in excess of aggregate accumulated benefit obligation | 59,631,000 | 53,865,000 | |
Accumulated benefit obligations in excess of aggregate fair value of plan assets | 0 | 0 | |
401 (k) plan cost recognized | $ 1,933,000 | $ 1,793,000 | $ 1,736,000 |
Hourly Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Period for amortization of benefit plan gains and losses | 13 years 2 months 12 days | ||
Salaried Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Period for amortization of benefit plan gains and losses | 12 years 5 months 15 days | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit plans | plan | 3 | ||
Ten-year rate of return | 7.60% | 8.30% | 5.20% |
Five-year rate of return | 5.41% | 3.19% | 7.28% |
Pension Benefits | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit plans | plan | 2 | ||
Pension Benefits | Nonqualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit plans | plan | 1 | ||
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Age requirement for participant | 60 years | ||
Required employment period | 8 years | ||
Supplemental Employee Retirement Plan | 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 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of retired employees | employee | 389 | ||
Number of active employees | employee | 101 | ||
Postretirement Medical | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of retired employees | employee | 126 | ||
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts recognized in the consolidated balance sheets: | |||
Non-current employee benefit liabilities | $ (67,853) | $ (61,288) | |
Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at January 1 | (123,165) | (132,722) | |
Service cost | (533) | (587) | $ (564) |
Interest cost | (4,860) | (4,495) | (5,059) |
Plan amendment | 0 | 0 | |
Benefits paid | 7,696 | 8,524 | |
Expenses paid | 391 | 260 | |
Actuarial gain | (8,526) | 5,855 | |
Benefit obligation at December 31 | (128,997) | (123,165) | (132,722) |
Change in plan assets: | |||
Balance as of January 1 | 93,167 | 106,192 | |
Actual return on plan assets | 15,788 | (4,497) | |
Expenses paid | (391) | (260) | |
Contributions | 183 | 256 | |
Benefits paid | (7,696) | (8,524) | |
Balance as of December 31 | 101,051 | 93,167 | 106,192 |
Unfunded status at December 31 | (27,946) | (29,998) | |
Amounts recognized in the consolidated balance sheets: | |||
Prepaid pension costs | 31,686 | 23,869 | |
Other accrued liabilities | (111) | (228) | |
Non-current employee benefit liabilities | (59,521) | (53,639) | |
Net amounts recognized | (27,946) | (29,998) | |
Other Postretirement Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at January 1 | (8,296) | (8,967) | |
Service cost | (3) | (4) | (5) |
Interest cost | (347) | (330) | (368) |
Plan amendment | 0 | (39) | |
Benefits paid | 594 | 553 | |
Expenses paid | 0 | 0 | |
Actuarial gain | (934) | 491 | |
Benefit obligation at December 31 | (8,986) | (8,296) | (8,967) |
Change in plan assets: | |||
Balance as of January 1 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Expenses paid | 0 | 0 | |
Contributions | 594 | 553 | |
Benefits paid | (594) | (553) | |
Balance as of December 31 | 0 | 0 | $ 0 |
Unfunded status at December 31 | (8,986) | (8,296) | |
Amounts recognized in the consolidated balance sheets: | |||
Prepaid pension costs | 0 | 0 | |
Other accrued liabilities | (654) | (647) | |
Non-current employee benefit liabilities | (8,332) | (7,649) | |
Net amounts recognized | $ (8,986) | $ (8,296) |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost — benefits earned during the period | $ 533 | $ 587 | $ 564 |
Interest cost on projected benefit obligation | 4,860 | 4,495 | 5,059 |
Expected return on assets | (4,874) | (5,572) | (5,424) |
Prior service cost | 0 | 0 | 0 |
Amortization of net loss (gain) | 2,001 | 1,804 | 2,009 |
Net expense | 2,520 | 1,314 | 2,208 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost — benefits earned during the period | 3 | 4 | 5 |
Interest cost on projected benefit obligation | 347 | 330 | 368 |
Expected return on assets | 0 | 0 | 0 |
Prior service cost | 4 | 4 | 0 |
Amortization of net loss (gain) | (40) | (41) | (54) |
Net expense | $ 314 | $ 297 | $ 319 |
Employee Benefit Plans (Accumul
Employee Benefit Plans (Accumulated Other Comprehensive Income Next Fixal Year) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year [Abstract] | |
Prior service cost | $ 4 |
Actuarial loss | 1,847 |
Pension Benefits | |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year [Abstract] | |
Prior service cost | 0 |
Actuarial loss | 1,836 |
Other Postretirement Benefits | |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year [Abstract] | |
Prior service cost | 4 |
Actuarial loss | $ 11 |
Employee Benefit Plans (Amounts
Employee Benefit Plans (Amounts Recognized Accumlated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), before Income Taxes [Roll Forward] | |||
Accumulated other comprehensive income (loss) | $ (33,840) | $ (31,880) | |
Amortization of prior service costs | 4 | ||
Prior service costs | (37) | ||
Amortization of loss (gain) | 1,961 | 1,763 | |
Net gain (loss) arising during the year | 1,454 | (3,723) | $ 1,768 |
Accumulated other comprehensive income (loss) | (30,458) | (33,840) | (31,880) |
Pension Benefits | |||
Accumulated Other Comprehensive Income (Loss), before Income Taxes [Roll Forward] | |||
Accumulated other comprehensive income (loss) | (34,053) | (31,643) | |
Amortization of prior service costs | 0 | ||
Prior service costs | 0 | ||
Amortization of loss (gain) | 2,001 | 1,804 | |
Net gain (loss) arising during the year | 2,388 | (4,214) | |
Accumulated other comprehensive income (loss) | (29,664) | (34,053) | (31,643) |
Other Postretirement Benefits | |||
Accumulated Other Comprehensive Income (Loss), before Income Taxes [Roll Forward] | |||
Accumulated other comprehensive income (loss) | 213 | (237) | |
Amortization of prior service costs | 4 | ||
Prior service costs | (37) | ||
Amortization of loss (gain) | (40) | (41) | |
Net gain (loss) arising during the year | (934) | 491 | |
Accumulated other comprehensive income (loss) | $ (794) | $ 213 | $ (237) |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Benefit Plan Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed rates of return on invested assets | 5.50% | 5.50% | 5.50% |
Pension Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates — benefit obligation | 2.55% | 3.90% | 3.25% |
Discount rates — service cost | 3.90% | 3.25% | 3.60% |
Pension Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates — benefit obligation | 3.10% | 4.25% | 3.70% |
Discount rates — service cost | 4.25% | 3.70% | 4.20% |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates — benefit obligation | 3.30% | 4.35% | 3.80% |
Discount rates — service cost | 4.35% | 3.80% | 4.40% |
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, 2019 | Dec. 31, 2018 | |
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 | 35.00% | |
Actual allocation | 38.00% | 52.00% |
Investment grade fixed income securities | ||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||
Target allocation | 55.00% | |
Actual allocation | 53.00% | 39.00% |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | $ 127 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 101,051 | 93,167 | $ 106,192 |
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76 | 175 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49,907 | 59,261 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,398 | 2,161 | |
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 | 2,398 | 2,161 | |
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 | 76 | 175 | |
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 | 76 | 175 | |
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 | Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 38,537 | 33,731 | |
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 | 38,537 | 48,126 | |
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 | 51,068 | 48,126 | |
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 | 8,972 | ||
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 | 8,972 | ||
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 | 8,974 | ||
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 | 8,974 | ||
Pension Benefits | Investment Partnership | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 |
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, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Balance as of January 1 | $ 0 | $ 127 |
Distributions | 0 | (127) |
Balance as of December 31 | $ 0 | $ 0 |
Employee Benefit Plans (Assumed
Employee Benefit Plans (Assumed Health Care Cost Trend Rates) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 47 | |
Effect on benefit obligation, 1% Decrease | $ (44) | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed annual increases in Medicare Part B trends for next eight years | 3.95% | 4.04% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed annual increases in Medicare Part B trends for next eight years | 8.02% | 6.13% |
Employee Benefit Plans (Future
Employee Benefit Plans (Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Supplemental Employee Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 0 |
2021 | 7,644 |
2022 | 0 |
2023 | 0 |
2024 | 51,155 |
2025 - 2029 | 0 |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 7,548 |
2021 | 14,708 |
2022 | 6,614 |
2023 | 6,200 |
2024 | 56,959 |
2025 - 2029 | 23,303 |
Postretirement Medical | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 655 |
2021 | 651 |
2022 | 650 |
2023 | 644 |
2024 | 640 |
2025 - 2029 | $ 2,897 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Various U.S. state tax loss carryforwards | $ 4,296 | $ 5,137 | ||
Ownership percentage of subsidiaries included in tax return (more than 80%) | 80.00% | |||
Valuation allowance | $ 1,292 | 3,817 | ||
Unrecognized tax benefits | 1,647 | $ 391 | $ 628 | $ 515 |
Reasonably possible amount recognized over next 12 months | $ 51 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
U.S. Federal | $ 33,379 | $ 27,962 | $ 28,271 |
State | 10,632 | 11,225 | 3,458 |
Current Total | 44,011 | 39,187 | 31,729 |
Deferred: | |||
U.S. Federal | (7,209) | (12,524) | (31,049) |
State | (3,989) | (5,111) | (2,262) |
Deferred Total | (11,198) | (17,635) | (33,311) |
Income tax expense (benefit) | $ 32,813 | $ 21,552 | $ (1,582) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Employee benefit accruals | $ 11,709 | $ 12,801 |
Impairment of investments | 9,772 | 4,131 |
Impact of timing of settlement payments | 19,313 | 20,551 |
Disallowed interest expense carryforward | 0 | 1,619 |
Various U.S. state tax loss carryforwards | 4,296 | 5,137 |
Operating lease liabilities | 3,679 | |
Other | 2,274 | 1,966 |
Deferred tax assets | 51,043 | 46,205 |
Less: Valuation allowance | (1,292) | (3,817) |
Net deferred tax assets | 49,751 | 42,388 |
Deferred tax liabilities: | ||
Basis differences on non-consolidated entities | (7,990) | (7,752) |
Basis differences on fixed and intangible assets | (35,082) | (35,854) |
Capitalized interest expense | 0 | (6,532) |
Basis differences on inventory | (10,645) | (11,497) |
Basis differences on long-term investments | (22,424) | (16,496) |
Impact of accounting for convertible debt | (813) | (385) |
Basis differences on available for sale securities | (3,219) | (1,283) |
Operating lease right of use assets | (3,273) | |
Deferred tax liabilities | (83,446) | (79,799) |
Net deferred tax liabilities | $ (33,695) | $ (37,411) |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income before provision for income taxes | $ 133,828 | $ 79,559 | $ 89,168 |
Federal income tax expense at statutory rate | 28,104 | 16,707 | 31,209 |
Increases (decreases) resulting from: | |||
State income taxes, net of federal income tax benefits | 6,430 | 6,060 | 3,833 |
Impact of non-controlling interest | (9) | 21 | (2,162) |
Non-deductible expenses | 1,385 | 1,993 | 2,146 |
Impact of domestic production deduction | 0 | 359 | (2,960) |
Impact of Tax Cuts and Jobs Act of 2017 | 0 | (2,691) | (28,845) |
Excess tax benefits on stock-based compensation | (1,488) | (778) | (1,143) |
Tax credits | (166) | (127) | (2,683) |
Other | 791 | (545) | (155) |
Inclusion of tax liabilities from unincorporated entities | 291 | 400 | (47) |
Changes in valuation allowance, net of equity and tax audit adjustments | (2,525) | 153 | (775) |
Income tax expense (benefit) | $ 32,813 | $ 21,552 | $ (1,582) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance | $ 391 | $ 628 | $ 515 |
Additions based on tax positions related to prior years | 1,586 | 26 | 208 |
Settlements | 0 | (100) | 0 |
Expirations of the statute of limitations | (330) | (163) | (95) |
Balance | $ 1,647 | $ 391 | $ 628 |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) | May 16, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost not yet recognized | $ 2,657,000 | |||
Granted (in shares) | 406,875 | 427,219 | 448,580 | |
Exercise price of options (in dollars per share) | $ 10.92 | $ 18.42 | $ 19.70 | |
Option exercises in period, intrinsic value | $ 6,577,000 | |||
Tax benefit of options exercised | 363,000 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,923,000 | $ 2,246,000 | $ 2,207,000 | |
Contractual term | 10 years | |||
Total compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | |||
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] | ||||
Share-based compensation expense | $ 21,000 | $ 85,000 | $ 85,000 | |
Total compensation cost not yet recognized, period for recognition | 1 year 3 months 18 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 | 7,676,038 |
Stock Compensation (Fair Value
Stock Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 2.50% | 2.70% | 2.10% |
Risk-free interest rate, Maximum | 2.70% | 2.90% | 2.40% |
Expected volatility, Minimum | 20.24% | 19.02% | 18.88% |
Expected volatility, Maximum | 20.45% | 21.05% | 21.62% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected holding period | 4 years | 5 years | 6 years |
Weighted-average grant date fair value | $ 2.36 | $ 4.62 | $ 5.39 |
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 | $ 4.08 | $ 7.58 | $ 8.17 |
Stock Compensation (Stock Optio
Stock Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding (in shares) | 5,860,833 | 5,433,626 | 4,985,059 | |
Granted (in shares) | 406,875 | 427,219 | 448,580 | |
Exercised (in shares) | (1,824,351) | 0 | 0 | |
Canceled (in shares) | (11) | (12) | (13) | |
Outstanding (in shares) | 4,443,346 | 5,860,833 | 5,433,626 | 4,985,059 |
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) | $ 13.16 | $ 12.74 | $ 12.10 | |
Granted, Weighted Average Exercise Price (in dollars per share) | 10.92 | 18.42 | 19.70 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 8.67 | 0 | 0 | |
Cancelled, Weighted Average Exercise Price (in dollars per share) | $ 0 | 0 | 0 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 13.16 | $ 12.74 | $ 12.10 | |
Outstanding, Weighted Average Remaining Contractual Term | 4 years 1 month 6 days | 4 years 8 months 12 days | 5 years 3 months 18 days | |
Outstanding, Aggregate Intrinsic Value | $ 4,427 | $ 1,095 | $ 41,069 | $ 37,557 |
Options exercisable (in shares) | 2,689,673 | 4,019,477 | 3,500,201 | |
Common stock fair value | $ 13.39 | $ 9.27 | $ 20.30 |
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, 2019USD ($)$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | shares | 4,443,346 |
Outstanding, Weighted Average Remaining Contractual Life | 5 years |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 14.80 |
Options Exercisable (in shares) | shares | 2,689,673 |
Options Exercisable, Weighted Average Remaining Contractual Life | 3 years 3 months 18 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 13.24 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 4,427 |
Exercise Price Range One | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 9.86 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 11.83 |
Options Outstanding (in shares) | shares | 2,082,717 |
Outstanding, Weighted Average Remaining Contractual Life | 3 years 8 months 12 days |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.26 |
Options Exercisable (in shares) | shares | 1,675,842 |
Options Exercisable, Weighted Average Remaining Contractual Life | 2 years 4 months 24 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.35 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Exercise Price Range Two | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 11.83 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 13.80 |
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 Three | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 13.80 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 15.77 |
Options Outstanding (in shares) | shares | 519,278 |
Outstanding, Weighted Average Remaining Contractual Life | 4 years 4 months 24 days |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 14.68 |
Options Exercisable (in shares) | shares | 519,278 |
Options Exercisable, Weighted Average Remaining Contractual Life | 4 years 4 months 24 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 14.68 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Exercise Price Range Four | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 15.77 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 17.74 |
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 Five | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 17.74 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 19.71 |
Options Outstanding (in shares) | shares | 1,841,351 |
Outstanding, Weighted Average Remaining Contractual Life | 6 years 7 months 6 days |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 18.84 |
Options Exercisable (in shares) | shares | 494,553 |
Options Exercisable, Weighted Average Remaining Contractual Life | 5 years 2 months 12 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 18.12 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Stock Compensation (Restricted
Stock Compensation (Restricted Stock Activity) (Details) - Restricted Stock $ in Thousands | May 02, 2019USD ($)directorshares | May 29, 2018USD ($)directorshares | Apr. 01, 2016directorshares | Nov. 10, 2015USD ($)shares | Oct. 10, 2015 | Jul. 23, 2014USD ($)shares | Oct. 31, 2013USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Apr. 30, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 21 | $ 85 | $ 85 | ||||||||
Total compensation cost not yet recognized | $ 15,095 | 22,077 | |||||||||
Total compensation cost not yet recognized, period for recognition | 1 year 3 months 18 days | ||||||||||
May 2, 2019 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 63,000 | ||||||||||
Share-based compensation expense | $ 124 | ||||||||||
Award vesting period | 3 years | ||||||||||
Total compensation cost not yet recognized | $ 564 | ||||||||||
April 2016 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 60,775 | ||||||||||
Share-based compensation expense | 92 | 374 | 351 | ||||||||
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 | 27,563 | ||||||||||
Share-based compensation expense | 241 | 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 | 1,458,608 | ||||||||||
Performance period | 7 years | ||||||||||
Share-based compensation expense | 4,053 | 4,053 | $ 5,275 | ||||||||
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 | 1,340,096 | ||||||||||
Performance period | 7 years | ||||||||||
Share-based compensation expense | 2,969 | ||||||||||
Total compensation cost not yet recognized | $ 20,780 | ||||||||||
October 2013 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 36,853 | ||||||||||
Total compensation cost not yet recognized | $ 458 | ||||||||||
Directors | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of directors | director | 6 | ||||||||||
Directors | May 29, 2018 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options, grants in period (shares) | shares | 7,348 | ||||||||||
Share-based compensation expense | $ 46 | $ 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 ($) | Dec. 31, 2016USD ($)case | Oct. 31, 2013USD ($)case | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | 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 | $ 7,363 | $ 7,144 | $ 12,809 | ||||
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 | $ 17,650 | $ 110,000 | |||||
Cases settled | case | 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 ($) | Dec. 31, 2016USD ($)case | Oct. 31, 2013USD ($)case | Dec. 31, 2019case | Dec. 31, 2017case |
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 | 124 | 4,900 | |||
Amount of litigation settlement awarded to other party | $ | $ 17,650 | $ 110,000 | |||
Liggett and Vector Tobacco | Engle Progeny Cases | |||||
Loss Contingencies [Line Items] | |||||
Cases settled | 196 | 28 |
Contingencies (Individual Actio
Contingencies (Individual Actions) (Details) | Dec. 31, 2019case |
Individual Actions Cases | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 51 |
Liggett | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 1 |
Liggett | Individual Actions Cases | Florida | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 32 |
Liggett | Individual Actions Cases | Illinois | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 8 |
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 | Nevada | |
Loss Contingencies [Line Items] | |
Cases pending (in cases) | 4 |
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) | Nov. 21, 1996USD ($) | Dec. 31, 2016USD ($)case | Feb. 28, 2015 | Oct. 31, 2013USD ($)case | Dec. 31, 2019settlementcase | Dec. 31, 2019USD ($)case | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)case |
Loss Contingencies [Line Items] | ||||||||
Amount of litigation settlement awarded to other party | $ | $ 145,000,000,000 | |||||||
Litigation settlement and judgment expense (income) | $ | $ 990,000 | $ (1,784,000) | $ 6,591,000 | |||||
Individual Actions Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases pending (in cases) | case | 51 | 51 | ||||||
Liggett and Vector Tobacco | Engle Progeny Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases settled | case | 196 | 28 | ||||||
Cases pending (in cases) | case | 47 | 47 | ||||||
Liggett and Vector Tobacco | Individual Actions Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases settled | case | 1 | |||||||
Liggett and Vector Tobacco | Engle Progeny and Individual Action Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payments for legal settlements | $ | $ 5,500 | |||||||
Liggett | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount of litigation settlement awarded to other party | $ | $ 790,000,000 | |||||||
Cases pending (in cases) | case | 1 | 1 | ||||||
Liggett | Engle Progeny Cases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cases settled | case | 124 | 4,900 | ||||||
Amount of litigation settlement awarded to other party | $ | $ 17,650,000 | $ 110,000,000 | ||||||
Litigation settlement amount paid in lump sum | $ | 61,600,000 | |||||||
Litigation settlement, installment term | 14 years | |||||||
Litigation settlement amount paid in installment payments | $ | 48,000,000 | |||||||
Litigation settlement amount of estimated future payments per annum | $ | $ 3,400,000 | |||||||
Payments for legal settlements | $ | $ 8,000,000 | |||||||
Number of settlements paid | settlement | 9 | |||||||
Cases with verdicts | case | 25 | 25 | ||||||
Plaintiffs' verdicts (in cases) | case | 16 | 16 | ||||||
Cases with verdicts in favor of defendants | case | 9 | 9 | ||||||
Cases including punitive damages (in cases) | case | 5 | 5 | ||||||
Liggett | Lukacs, Campbell, Douglas, Clay, Tullo, Ward Rizzuto, Lambert and Buchanan | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payments for legal settlements | $ | $ 39,773,000 |
Contingencies (Judgments Paid M
Contingencies (Judgments Paid Maryland and Liggett Only Cases) (Details) $ in Thousands | Nov. 21, 1996USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2013USD ($) | Dec. 31, 2019USD ($)case |
Loss Contingencies [Line Items] | ||||
Amount of litigation settlement awarded to other party | $ 145,000,000 | |||
Individual Actions Cases | ||||
Loss Contingencies [Line Items] | ||||
Cases pending (in cases) | case | 51 | |||
Liggett | ||||
Loss Contingencies [Line Items] | ||||
Cases pending (in cases) | case | 1 | |||
Amount of litigation settlement awarded to other party | $ 790,000 | |||
Liggett | Engle Progeny Cases | ||||
Loss Contingencies [Line Items] | ||||
Payments for legal settlements | $ 8,000 | |||
Amount of litigation settlement awarded to other party | $ 17,650 | $ 110,000 | ||
Liggett | Lukacs, Campbell, Douglas, Clay, Tullo, Ward Rizzuto, Lambert and Buchanan | ||||
Loss Contingencies [Line Items] | ||||
Payments for legal settlements | $ 39,773 | |||
Maryland | Liggett | Individual Actions Cases | ||||
Loss Contingencies [Line Items] | ||||
Cases pending (in cases) | case | 16 | |||
Pending Litigation | Liggett | Lukacs, Campbell, Douglas, Clay, Tullo, Ward Rizzuto, Lambert and Buchanan | ||||
Loss Contingencies [Line Items] | ||||
Amount of litigation settlement awarded to other party | $ 160 |
Contingencies (Class Actions, H
Contingencies (Class Actions, Health Care Cost Recovery Actions, and Upcoming Trials) (Details) | Dec. 31, 2019defendantcase | Dec. 31, 2001case |
Parsons v. AC & S Inc. | ||
Loss Contingencies [Line Items] | ||
Number of defendants in bankruptcy | defendant | 3 | |
Individual Actions Cases | ||
Loss Contingencies [Line Items] | ||
Cases pending (in cases) | 51 | |
Pending claims scheduled for trial | 3 | |
Liggett | ||
Loss Contingencies [Line Items] | ||
Cases pending (in cases) | 1 | |
Liggett | Class Actions | ||
Loss Contingencies [Line Items] | ||
Cases pending (in cases) | 2 | |
Liggett | Crow Creek Sioux Tribe v. American Tobacco Company | ||
Loss Contingencies [Line Items] | ||
Cases pending (in cases) | 1 | |
Liggett and Vector Tobacco | Engle Progeny Cases | ||
Loss Contingencies [Line Items] | ||
Cases pending (in cases) | 47 | |
West Virginia | Tobacco Litigation Personal Injury Cases | ||
Loss Contingencies [Line Items] | ||
Cases pending (in cases) | 750 | |
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 ($) | Sep. 30, 2019USD ($) | Jul. 31, 2019USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2019USD ($)sponsorship | Mar. 31, 1998USD ($)state | Mar. 31, 2019USD ($) | Mar. 21, 2019 |
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 | $ 171,000,000 | |||||||
Payments for legal settlements | $ 140,000,000 | |||||||
Product Concentration Risk | Sales Revenue | Liggett and Vector Tobacco | ||||||||
Loss Contingencies [Line Items] | ||||||||
Concentration risk percentage | 4.00% | |||||||
Mississippi | Liggett | Health Care Cost Recovery Actions | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percent of Income Entitled | 0.50% | |||||||
Proceeds that should not be included in income | $ 294,000,000 | |||||||
Damages sought | $ 17,500,000 | $ 14,400,000 | $ 27,000,000 |
Contingencies (Certain MSA Disp
Contingencies (Certain MSA Disputes) (Details) $ in Thousands | 12 Months Ended | 84 Months Ended |
Dec. 31, 2019USD ($)state | Dec. 31, 2019USD ($)state | |
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 | 37 |
Combined allocable share, percentage | 75.00% | |
Liggett and Vector Tobacco | 2004-2010 NPM Adjustment | ||
Loss Contingencies [Line Items] | ||
Amounts accrued | $ 13,400 | $ 13,400 |
Liggett and Vector Tobacco | Cost of Sales | Health Care Cost Recovery Actions | ||
Loss Contingencies [Line Items] | ||
Settlement adjustment credit | 5,925 | |
Liggett and Vector Tobacco | Cost of Sales | Health Care Cost Recovery Actions, NPM Adjustment | ||
Loss Contingencies [Line Items] | ||
Settlement adjustment credit | 48,032 | |
Liggett | 2011-2015 NPM Adjustment | ||
Loss Contingencies [Line Items] | ||
Amounts accrued | $ 36,300 | $ 36,300 |
Contingencies (_Gross_ v. _Net_
Contingencies (“Gross” v. “Net” Calculations and Other State Settlements) (Details) | Nov. 21, 1996USD ($) | Sep. 30, 2019USD ($) | Jul. 31, 2019USD ($) | Jan. 31, 2016USD ($) | 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 | $ 17,500,000 | $ 14,400,000 | $ 27,000,000 |
Contingencies (Activity in Accr
Contingencies (Activity in Accruals for MSA and Tobacco Litigation Schedule) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingency Accrual [Roll Forward] | |||
Current liabilities, beginning balance | $ 36,871 | $ 12,644 | $ 19,851 |
Expenses | 166,461 | 169,555 | 155,921 |
NPM Settlement adjustment | (595) | ||
Change in MSA obligations capitalized as inventory | 4,936 | (1,438) | 76 |
Payments | (172,630) | (142,898) | (168,833) |
Payments | 0 | (40) | (3,426) |
Interest on withholding | 281 | 32 | 429 |
Current liabilities, ending balance | 38,365 | 36,871 | 12,644 |
Noncurrent liabilities, beginning balance | 38,177 | 41,319 | 49,770 |
Expenses | 0 | 0 | 0 |
NPM Settlement adjustment | (5,703) | ||
Reclassification to/(from) non-current liabilities | 2,446 | (429) | 6,993 |
Interest on withholding | 2,138 | 2,172 | 2,896 |
Noncurrent liabilities, ending balance | 37,869 | 38,177 | 41,319 |
Settled Litigation | |||
Loss Contingency Accrual [Roll Forward] | |||
Current liabilities, beginning balance | 36,561 | 12,384 | 16,192 |
Expenses | 165,471 | 168,820 | 149,355 |
NPM Settlement adjustment | (595) | ||
Change in MSA obligations capitalized as inventory | 4,936 | (1,438) | 76 |
Payments | (171,960) | (141,963) | (151,296) |
Payments | 0 | (40) | 0 |
Interest on withholding | 0 | 0 | 0 |
Current liabilities, ending balance | 34,116 | 36,561 | 12,384 |
Noncurrent liabilities, beginning balance | 16,383 | 21,479 | 22,257 |
Expenses | 0 | 0 | 0 |
NPM Settlement adjustment | (5,703) | ||
Reclassification to/(from) non-current liabilities | (892) | (647) | (150) |
Interest on withholding | 0 | 0 | 0 |
Noncurrent liabilities, ending balance | 17,275 | 16,383 | 21,479 |
Pending Litigation | |||
Loss Contingency Accrual [Roll Forward] | |||
Current liabilities, beginning balance | 310 | 260 | 3,659 |
Expenses | 990 | 735 | 6,566 |
NPM Settlement adjustment | 0 | ||
Change in MSA obligations capitalized as inventory | 0 | 0 | 0 |
Payments | (670) | (935) | (17,537) |
Payments | 0 | 0 | (3,426) |
Interest on withholding | 281 | 32 | 429 |
Current liabilities, ending balance | 4,249 | 310 | 260 |
Noncurrent liabilities, beginning balance | 21,794 | 19,840 | 27,513 |
Expenses | 0 | 0 | 0 |
NPM Settlement adjustment | 0 | ||
Reclassification to/(from) non-current liabilities | 3,338 | 218 | 7,143 |
Interest on withholding | 2,138 | 2,172 | 2,896 |
Noncurrent liabilities, ending balance | $ 20,594 | $ 21,794 | $ 19,840 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid during the period for: | |||
Interest, including interest related to finance leases | $ 118,974 | $ 107,021 | $ 117,453 |
Income taxes | 44,184 | 26,529 | 26,885 |
Non-cash investing and financing activities: | |||
Issuance of stock dividend | 703 | 671 | 644 |
Decrease in non-controlling interest related to purchase of subsidiary | 0 | (73,953) | 0 |
Notes payable issued for purchase of subsidiary | 0 | 30,000 | 0 |
Contingent consideration related to purchase of subsidiary | 0 | 6,304 | 0 |
Net receivable from purchase of subsidiary | $ 0 | $ 497 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) $ / shares in Units, $ in Thousands | Feb. 14, 2020USD ($) | Oct. 09, 2019USD ($)$ / sharesshares | Nov. 04, 2011 | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2015 | Nov. 11, 2019$ / shares | Sep. 30, 2012ft² |
Ladenburg Thalmann Financial Services Inc. (“LTS”) | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment owned (in shares) | shares | 15,191,205 | |||||||||
Equity method ownership percentage | 10.22% | |||||||||
Equity Method Investee | Castle Brands Management Agreement | Common Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment owned (in shares) | shares | 12,895,017 | |||||||||
Common shares converted into right to receive (in dollars per share) | $ / shares | $ 1.27 | |||||||||
Proceeds from common shares of LTS | $ 16,377 | |||||||||
Equity Method Investee | Ladenburg Thalmann Financial Services Inc. (“LTS”) | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue from related parties | $ 850 | $ 850 | $ 850 | |||||||
Equity Method Investee | Ladenburg Thalmann Financial Services Inc. (“LTS”) | LTS Loan Due Nov 2016 | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt instrument term | 5 years | |||||||||
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 | 480 | 480 | |||||||
Preferred stock dividend rate | 8.00% | |||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 25 | |||||||||
Equity Method Investee | Ladenburg Thalmann Financial Services Inc. (“LTS”) | LTS Common Stock | Common Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Common shares converted into right to receive (in dollars per share) | $ / shares | $ 3.50 | |||||||||
Equity Method Investee | Castle Brands Inc. | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue from related parties | $ 75 | 100 | 100 | |||||||
President and Chief Executive Officer | Insurance Commissions | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Amount of transaction | 215 | 247 | 249 | |||||||
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 | 1,525 | 1,425 | |||||||
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 | 75 | 50 | 53 | |||||||
President and Chief Executive Officer | Castle Brands Inc. | Compensation Paid to President and CEO of Castle | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Amount of transaction | 515 | 500 | 400 | |||||||
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 | 2,142 | 2,025 | 1,625 | |||||||
Beneficial Owner | Dr. Phillip Frost | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percent of ownership by management (more than 10%) | 10.00% | |||||||||
Affiliated Entity | 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 | |||||||||
Monthly lease payments, year 5 and thereafter | 41 | |||||||||
Expenses from transactions with related party | 458 | 450 | 415 | |||||||
Son of Company's President and Chief Executive Officer | Douglas Elliman Realty, LLC | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Expenses from transactions with related party | $ 712 | $ 318 | $ 787 | |||||||
Forecast | Equity Method Investee | Ladenburg Thalmann Financial Services Inc. (“LTS”) | LTS Preferred | Series A Cumulative Redeemable Preferred Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Proceeds from common shares of LTS | $ 6,009 | |||||||||
Subsequent Event | Equity Method Investee | Ladenburg Thalmann Financial Services Inc. (“LTS”) | LTS Common Stock | Common Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Proceeds from common shares of LTS | $ 53,169 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements (Fair Value Measurements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets: | |||
Investment securities available for sale | $ 129,641 | $ 131,569 | |
Long-term investments, fair value | 45,781 | 54,628 | |
Total | 533,133 | ||
Equity securities at fair value that qualify for the NAV practical expedient | 45,781 | 54,628 | |
Liabilities: | |||
Contingent consideration liability | 3,147 | ||
Fair value of derivatives embedded within convertible debt | 4,999 | ||
Fair value of derivatives embedded within convertible debt | 0 | 24,789 | |
Total | 8,146 | ||
Long-term investments | 61,723 | 66,259 | |
Impairment of long-term investments | 0 | 0 | $ (50) |
Douglas Elliman | |||
Liabilities: | |||
Contingent consideration liability | $ 6,304 | ||
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 | $ 4,999 | $ 24,789 | |
Interest rate | 5.50% | ||
Marketable equity securities | |||
Assets: | |||
Investment securities available for sale | $ 23,819 | ||
Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 22,377 | ||
Equity securities | |||
Assets: | |||
Investment securities available for sale | 46,196 | 47,202 | |
U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 14,660 | ||
Corporate securities | |||
Assets: | |||
Investment securities available for sale | 54,413 | ||
U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 6,816 | ||
Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 382 | ||
Commercial paper | |||
Assets: | |||
Investment securities available for sale | 5,887 | ||
Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 779 | ||
Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 508 | ||
Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 83,445 | ||
Money market funds | |||
Assets: | |||
Cash and cash equivalents | 307,655 | ||
Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 47,328 | ||
Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 2,193 | ||
Bonds | |||
Assets: | |||
Cash and cash equivalents | 535 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Investment securities available for sale | 46,196 | 47,202 | |
Total | 354,386 | ||
Equity securities at fair value that qualify for the NAV practical expedient | 0 | ||
Liabilities: | |||
Contingent consideration liability | 0 | 0 | |
Fair value of derivatives embedded within convertible debt | 0 | 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 | 46,196 | 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 | 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 | 307,655 | ||
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 | 83,445 | 84,367 | |
Total | 132,966 | ||
Equity securities at fair value that qualify for the NAV practical expedient | 0 | ||
Liabilities: | |||
Contingent consideration liability | 0 | 0 | |
Fair value of derivatives embedded within convertible debt | 0 | 0 | |
Total | 0 | ||
Significant Other Observable Inputs (Level 2) | Marketable equity securities | |||
Assets: | |||
Investment securities available for sale | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Equity securities | |||
Assets: | |||
Investment securities available for sale | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 14,660 | ||
Significant Other Observable Inputs (Level 2) | Corporate securities | |||
Assets: | |||
Investment securities available for sale | 54,413 | ||
Significant Other Observable Inputs (Level 2) | U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 6,816 | ||
Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 382 | ||
Significant Other Observable Inputs (Level 2) | Commercial paper | |||
Assets: | |||
Investment securities available for sale | 5,887 | 5,870 | |
Significant Other Observable Inputs (Level 2) | Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 779 | ||
Significant Other Observable Inputs (Level 2) | Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 508 | ||
Significant Other Observable Inputs (Level 2) | Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 83,445 | ||
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 | 47,328 | ||
Significant Other Observable Inputs (Level 2) | Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 2,193 | ||
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 | 0 | |
Total | 0 | ||
Equity securities at fair value that qualify for the NAV practical expedient | 0 | ||
Liabilities: | |||
Contingent consideration liability | 3,147 | 6,304 | |
Fair value of derivatives embedded within convertible debt | 4,999 | 31,424 | |
Total | 8,146 | ||
Significant Unobservable Inputs (Level 3) | Marketable equity securities | |||
Assets: | |||
Investment securities available for sale | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity securities | |||
Assets: | |||
Investment securities available for sale | 0 | 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 | 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: | |||
Long-term investments, fair value | 54,628 | ||
Total | 683,605 | ||
Liabilities: | |||
Fair value of derivatives embedded within convertible debt | 31,424 | ||
Fair value of derivatives embedded within convertible debt | 6,304 | ||
Total | 37,728 | ||
Fair Value, Measurements, Recurring | Marketable equity securities | |||
Assets: | |||
Investment securities available for sale | 26,010 | ||
Fair Value, Measurements, Recurring | Mutual funds invested in fixed income securities | |||
Assets: | |||
Investment securities available for sale | 21,192 | ||
Fair Value, Measurements, Recurring | U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 28,514 | ||
Fair Value, Measurements, Recurring | Corporate securities | |||
Assets: | |||
Investment securities available for sale | 41,733 | ||
Fair Value, Measurements, Recurring | U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 4,369 | ||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 401 | ||
Fair Value, Measurements, Recurring | Commercial paper | |||
Assets: | |||
Investment securities available for sale | 5,870 | ||
Fair Value, Measurements, Recurring | Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 2,330 | ||
Fair Value, Measurements, Recurring | Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 1,150 | ||
Fair Value, Measurements, Recurring | Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 84,367 | ||
Fair Value, Measurements, Recurring | Money market funds | |||
Assets: | |||
Cash and cash equivalents | 448,560 | ||
Fair Value, Measurements, Recurring | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 46,062 | ||
Fair Value, Measurements, Recurring | Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 2,251 | ||
Fair Value, Measurements, Recurring | Bonds | |||
Assets: | |||
Cash and cash equivalents | 535 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Long-term investments, fair value | 0 | ||
Total | 496,297 | ||
Liabilities: | |||
Total | 0 | ||
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) | 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 | 448,560 | ||
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 | 535 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Long-term investments, fair value | 0 | ||
Total | 132,680 | ||
Liabilities: | |||
Total | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government securities | |||
Assets: | |||
Investment securities available for sale | 28,514 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate securities | |||
Assets: | |||
Investment securities available for sale | 41,733 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 4,369 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities | |||
Assets: | |||
Investment securities available for sale | 401 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Index-linked U.S. bonds | |||
Assets: | |||
Investment securities available for sale | 2,330 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign fixed-income securities | |||
Assets: | |||
Investment securities available for sale | 1,150 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fixed income securities | |||
Assets: | |||
Investment securities available for sale | 84,367 | ||
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 | 46,062 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Certificates of deposit | |||
Assets: | |||
Cash and cash equivalents | 2,251 | ||
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: | |||
Long-term investments, fair value | 0 | ||
Total | 0 | ||
Liabilities: | |||
Total | 37,728 | ||
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) | 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 | ||
Current Restricted Assets | Fair Value, Measurements, Recurring | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | 4,423 | 2,570 | |
Restricted Assets | Fair Value, Measurements, Recurring | Commercial paper | |||
Assets: | |||
Cash and cash equivalents | $ 3,160 | $ 3,910 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements (Quantitative Information about Level 3 Fair Value Measurements) (Details) | Mar. 31, 2020$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of derivatives embedded within convertible debt | $ 0 | $ 24,789,000 | |
Contingent consideration liability | 3,147,000 | ||
Nonrecurring nonfinancial assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration liability | 3,147,000 | 6,304,000 | |
Estimated fair value of the Douglas Elliman reporting unit | 271,500,000 | ||
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 | $ 4,999,000 | $ 31,424,000 | |
Assumed annual 2019 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 remaining cash dividends - Q4 2019 and Q1 2020 | Significant Unobservable Inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | $ / shares | 0.40 | 1.60 | |
Stock price | Significant Unobservable Inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | $ / shares | 13.39 | 9.73 | |
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 | 1.0394 | 1.0031 | |
Volatility | Significant Unobservable Inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.3694 | 0.2039 | |
Estimated fair value of the Douglas Elliman reporting unit | $ 320,000,000 | ||
Risk-free rate | Significant Unobservable Inputs (Level 3) | Monte Carlo simulation model | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.0161 | 0.0245 | |
Implied credit spread | Significant Unobservable Inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.020 | 0.085 | |
Implied credit spread | Significant Unobservable Inputs (Level 3) | Discounted cash flow | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.010 | 0.080 | |
Implied credit spread | Significant Unobservable Inputs (Level 3) | Discounted cash flow | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.030 | 0.090 | |
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 | 0.3556 | 0.3022 | |
Forecast | Assumed remaining cash dividends - Q4 2019 and Q1 2020 | Significant Unobservable Inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | $ / shares | 0.20 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements (Investments in Real Estate Ventures) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate ventures | $ 131,556 | $ 141,105 |
Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of real estate, net | 39,757 | |
Investments in real estate ventures | 18,335 | |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate ventures | 0 | |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate ventures | 0 | |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate ventures | $ 18,335 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 439,565 | $ 504,790 | $ 538,432 | $ 420,924 | $ 445,939 | $ 513,869 | $ 481,488 | $ 428,966 | $ 1,903,711 | $ 1,870,262 | $ 1,807,476 | |
Operating income (loss) | 45,581 | $ 66,720 | $ 76,244 | $ 42,590 | 48,086 | $ 66,018 | $ 61,861 | $ 48,084 | 231,135 | 224,049 | 235,648 | |
Equity in (losses) earnings from real estate ventures | (19,288) | 14,446 | 21,395 | |||||||||
Identifiable assets | 1,505,089 | 1,549,504 | 1,505,089 | 1,549,504 | 1,328,278 | |||||||
Depreciation and amortization | 17,851 | 18,807 | 18,614 | |||||||||
Capital expenditures | 12,575 | 17,682 | 19,869 | |||||||||
Litigation settlement and judgment expense (income) | 990 | (1,784) | 6,591 | |||||||||
Investments in real estate ventures | 131,556 | 141,105 | 131,556 | 141,105 | 188,131 | |||||||
Investment securities at fair value | 129,641 | 131,569 | 129,641 | 131,569 | ||||||||
Long-term investments (of which $45,781 and $54,628 were carried at fair value) | 61,723 | 66,259 | 61,723 | 66,259 | ||||||||
Equity-method investments | 15,942 | 11,631 | 15,942 | 11,631 | ||||||||
Corporate and Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 0 | 0 | (838) | |||||||||
Operating income (loss) | (27,565) | (25,913) | (26,191) | |||||||||
Equity in (losses) earnings from real estate ventures | 0 | 0 | 0 | |||||||||
Identifiable assets | 501,973 | 693,970 | 501,973 | 693,970 | 460,186 | |||||||
Depreciation and amortization | 994 | 1,017 | 1,277 | |||||||||
Capital expenditures | 126 | 22 | 35 | |||||||||
Cash | 272,459 | 474,974 | 272,459 | 474,974 | 195,053 | |||||||
Investment securities at fair value | 131,569 | 131,569 | 150,489 | |||||||||
Long-term investments (of which $45,781 and $54,628 were carried at fair value) | 45,781 | 54,628 | 45,781 | 54,628 | 15,841 | |||||||
Equity-method investments | 15,942 | 11,631 | 15,942 | 11,631 | 65,450 | |||||||
Tobacco | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [1] | 1,114,840 | 1,111,094 | 1,080,950 | ||||||||
Income (expense) from MSA/NPM settlement | 6,298 | 2,721 | ||||||||||
Litigation settlement and judgment expense (income) | 990 | 685 | 6,591 | |||||||||
Tobacco | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 1,114,840 | 1,111,094 | 1,080,950 | |||||||||
Operating income (loss) | 261,630 | 246,527 | 240,400 | |||||||||
Equity in (losses) earnings from real estate ventures | 0 | 0 | 0 | |||||||||
Identifiable assets | 336,566 | 315,706 | 336,566 | 315,706 | 309,316 | |||||||
Depreciation and amortization | 7,824 | 8,210 | 8,826 | |||||||||
Capital expenditures | 4,173 | 4,599 | 3,705 | |||||||||
Real Estate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 788,871 | 759,168 | 727,364 | |||||||||
Real Estate | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 788,871 | 759,168 | 727,364 | |||||||||
Operating income (loss) | (2,930) | 3,435 | 21,439 | |||||||||
Equity in (losses) earnings from real estate ventures | (19,288) | 14,446 | 21,395 | |||||||||
Identifiable assets | $ 666,550 | $ 539,828 | 666,550 | 539,828 | 558,776 | |||||||
Depreciation and amortization | 9,033 | 9,580 | 8,511 | |||||||||
Capital expenditures | 8,276 | $ 13,061 | $ 16,129 | |||||||||
Income (expense) from MSA/NPM settlement | $ (2,469) | |||||||||||
[1] | Revenues and cost of sales include federal excise taxes of $451,256 , $469,836 and $460,561 for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Quarterly Financial Results (_3
Quarterly Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 27, 2019 | Sep. 27, 2018 | Sep. 28, 2017 | Sep. 29, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenues | $ 439,565 | $ 504,790 | $ 538,432 | $ 420,924 | $ 445,939 | $ 513,869 | $ 481,488 | $ 428,966 | $ 1,903,711 | $ 1,870,262 | $ 1,807,476 | ||||
Gross Profit | 137,636 | 159,334 | 170,258 | 134,904 | 140,798 | 153,567 | 148,722 | 134,691 | |||||||
Operating income | 45,581 | 66,720 | 76,244 | 42,590 | 48,086 | 66,018 | 61,861 | 48,084 | 231,135 | 224,049 | 235,648 | ||||
Net income | 10,667 | 36,008 | 39,307 | 15,033 | 20,319 | 15,028 | 18,996 | 3,664 | 101,015 | 58,007 | 90,750 | ||||
Net income applicable to common shares attributed to Vector Group Ltd. | $ 10,706 | $ 36,008 | $ 39,307 | $ 14,953 | $ 21,074 | $ 12,002 | $ 17,818 | $ 7,211 | $ 100,974 | $ 58,105 | $ 84,572 | ||||
Per basic common share: | |||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. (in dollars per share) | $ 0.06 | $ 0.23 | $ 0.25 | $ 0.09 | $ 0.13 | $ 0.07 | $ 0.11 | $ 0.04 | $ 0.64 | $ 0.35 | $ 0.54 | ||||
Per diluted common share: | |||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. (in dollars per share) | $ 0.06 | $ 0.23 | $ 0.25 | $ 0.08 | $ 0.13 | $ 0.07 | $ 0.11 | $ 0.04 | $ 0.63 | $ 0.35 | $ 0.54 | ||||
Stock dividend paid to company stockholders | 5.00% | 5.00% | 5.00% | 5.00% |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information (Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 371,341 | $ 584,581 | $ 301,353 | |
Investment securities at fair value | 129,641 | 131,569 | ||
Accounts receivable - trade, net | 36,959 | 34,246 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 98,762 | 90,997 | ||
Income taxes receivable, net | 0 | 0 | ||
Other current assets | 44,911 | 30,828 | ||
Total current assets | 681,614 | 872,221 | ||
Property, plant and equipment, net | 82,160 | 86,736 | ||
Investments in real estate, net | 28,317 | 26,220 | ||
Long-term investments (of which $45,781 and $54,628 were carried at fair value) | 61,723 | 66,259 | ||
Investments in real estate ventures | 131,556 | 141,105 | ||
Operating lease right of use assets | 149,578 | |||
Investments in consolidated subsidiaries | 0 | 0 | ||
Goodwill and other intangible assets, net | 265,993 | 266,611 | ||
Other assets | 104,148 | 90,352 | ||
Total assets | 1,505,089 | 1,549,504 | 1,328,278 | |
Current liabilities: | ||||
Current portion of notes payable and long-term debt | 209,269 | 256,134 | ||
Current portion of fair value of derivatives embedded within convertible debt | 4,999 | 6,635 | ||
Intercompany payables | 0 | 0 | ||
Income taxes payable, net | 5,138 | 5,252 | ||
Current payments due under the Master Settlement Agreement | 34,116 | 36,561 | ||
Current operating lease liability | 18,294 | 0 | ||
Other current liabilities | 189,317 | 180,338 | ||
Total current liabilities | 461,133 | 484,920 | ||
Notes payable, long-term debt and other obligations, less current portion | 1,397,216 | 1,386,697 | ||
Fair value of derivatives embedded within convertible debt | 0 | 24,789 | ||
Non-current employee benefits | 67,853 | 61,288 | ||
Deferred income taxes, net | 33,695 | 37,411 | ||
Non-current operating lease liability | 156,963 | |||
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement | 73,245 | 101,765 | ||
Total liabilities | 2,190,105 | 2,096,870 | ||
Commitments and contingencies (Notes 0 and 15) | ||||
Total Vector Group Ltd. stockholders' deficiency | (685,464) | (548,059) | ||
Non-controlling interest | 448 | 693 | ||
Total stockholders' deficiency | (685,016) | (547,366) | $ (331,760) | $ (253,272) |
Total liabilities and stockholders' deficiency | 1,505,089 | 1,549,504 | ||
Long-term investments, fair value | 45,781 | 54,628 | ||
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 | (44,043) | (38,391) | ||
Inventories | 0 | 0 | ||
Income taxes receivable, net | (95) | (1,268) | ||
Other current assets | 0 | 0 | ||
Total current assets | (44,138) | (39,659) | ||
Property, plant and equipment, net | 0 | 0 | ||
Investments in real estate, net | 0 | 0 | ||
Long-term investments (of which $45,781 and $54,628 were carried at fair value) | 0 | 0 | ||
Investments in real estate ventures | 0 | 0 | ||
Operating lease right of use assets | 0 | |||
Investments in consolidated subsidiaries | (658,393) | (683,401) | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | (702,531) | (723,060) | ||
Current liabilities: | ||||
Current portion of notes payable and long-term debt | (10,000) | 0 | ||
Current portion of fair value of derivatives embedded within convertible debt | 0 | 0 | ||
Intercompany payables | (44,043) | (38,391) | ||
Income taxes payable, net | (95) | (1,268) | ||
Current payments due under the Master Settlement Agreement | 0 | 0 | ||
Current operating lease liability | 0 | |||
Other current liabilities | (897) | 0 | ||
Total current liabilities | (55,035) | (39,659) | ||
Notes payable, long-term debt and other obligations, less current portion | (20,000) | 0 | ||
Fair value of derivatives embedded within convertible debt | 0 | |||
Non-current employee benefits | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Non-current operating lease liability | 0 | |||
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement | (3,147) | 0 | ||
Total liabilities | (78,182) | (39,659) | ||
Commitments and contingencies (Notes 0 and 15) | ||||
Total Vector Group Ltd. stockholders' deficiency | (624,349) | (683,401) | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' deficiency | (624,349) | (683,401) | ||
Total liabilities and stockholders' deficiency | (702,531) | (723,060) | ||
Parent/Issuer | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 272,282 | 474,880 | ||
Investment securities at fair value | 129,641 | 131,569 | ||
Accounts receivable - trade, net | 0 | 0 | ||
Intercompany receivables | 44,043 | 38,391 | ||
Inventories | 0 | 0 | ||
Income taxes receivable, net | 0 | 0 | ||
Other current assets | 9,159 | 1,500 | ||
Total current assets | 455,125 | 646,340 | ||
Property, plant and equipment, net | 425 | 506 | ||
Investments in real estate, net | 0 | 0 | ||
Long-term investments (of which $45,781 and $54,628 were carried at fair value) | 61,723 | 66,259 | ||
Investments in real estate ventures | 0 | 0 | ||
Operating lease right of use assets | 7,085 | |||
Investments in consolidated subsidiaries | 420,353 | 431,288 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Other assets | 15,080 | 14,616 | ||
Total assets | 959,791 | 1,159,009 | ||
Current liabilities: | ||||
Current portion of notes payable and long-term debt | 163,932 | 226,343 | ||
Current portion of fair value of derivatives embedded within convertible debt | 4,999 | 6,635 | ||
Intercompany payables | 0 | 0 | ||
Income taxes payable, net | 2,398 | 5,257 | ||
Current payments due under the Master Settlement Agreement | 0 | 0 | ||
Current operating lease liability | 508 | |||
Other current liabilities | 52,065 | 55,915 | ||
Total current liabilities | 223,902 | 294,150 | ||
Notes payable, long-term debt and other obligations, less current portion | 1,377,108 | 1,354,219 | ||
Fair value of derivatives embedded within convertible debt | 24,789 | |||
Non-current employee benefits | 50,806 | 45,615 | ||
Deferred income taxes, net | (14,492) | (13,084) | ||
Non-current operating lease liability | 7,558 | |||
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement | 373 | 1,379 | ||
Total liabilities | 1,645,255 | 1,707,068 | ||
Commitments and contingencies (Notes 0 and 15) | ||||
Total Vector Group Ltd. stockholders' deficiency | (685,464) | (548,059) | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' deficiency | (685,464) | (548,059) | ||
Total liabilities and stockholders' deficiency | 959,791 | 1,159,009 | ||
Subsidiary Guarantors | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 27,178 | 23,308 | ||
Investment securities at fair value | 0 | 0 | ||
Accounts receivable - trade, net | 15,646 | 15,440 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 98,762 | 90,997 | ||
Income taxes receivable, net | 0 | 0 | ||
Other current assets | 9,021 | 7,599 | ||
Total current assets | 150,607 | 137,344 | ||
Property, plant and equipment, net | 33,816 | 38,562 | ||
Investments in real estate, net | 0 | 0 | ||
Long-term investments (of which $45,781 and $54,628 were carried at fair value) | 0 | 0 | ||
Investments in real estate ventures | 0 | 0 | ||
Operating lease right of use assets | 4,830 | |||
Investments in consolidated subsidiaries | 238,040 | 252,113 | ||
Goodwill and other intangible assets, net | 107,511 | 107,511 | ||
Other assets | 46,416 | 38,154 | ||
Total assets | 581,220 | 573,684 | ||
Current liabilities: | ||||
Current portion of notes payable and long-term debt | 45,210 | 29,480 | ||
Current portion of fair value of derivatives embedded within convertible debt | 0 | 0 | ||
Intercompany payables | 236 | 479 | ||
Income taxes payable, net | 2,835 | 1,263 | ||
Current payments due under the Master Settlement Agreement | 34,116 | 36,561 | ||
Current operating lease liability | 2,015 | |||
Other current liabilities | 78,947 | 73,279 | ||
Total current liabilities | 163,359 | 141,062 | ||
Notes payable, long-term debt and other obligations, less current portion | 20,089 | 2,349 | ||
Fair value of derivatives embedded within convertible debt | 0 | |||
Non-current employee benefits | 17,047 | 15,673 | ||
Deferred income taxes, net | 22,620 | 17,732 | ||
Non-current operating lease liability | 3,402 | |||
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement | 41,020 | 38,179 | ||
Total liabilities | 267,537 | 214,995 | ||
Commitments and contingencies (Notes 0 and 15) | ||||
Total Vector Group Ltd. stockholders' deficiency | 313,683 | 358,689 | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' deficiency | 313,683 | 358,689 | ||
Total liabilities and stockholders' deficiency | 581,220 | 573,684 | ||
Subsidiary Non-Guarantors | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 71,881 | 86,393 | ||
Investment securities at fair value | 0 | 0 | ||
Accounts receivable - trade, net | 21,313 | 18,806 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 0 | 0 | ||
Income taxes receivable, net | 95 | 1,268 | ||
Other current assets | 26,731 | 21,729 | ||
Total current assets | 120,020 | 128,196 | ||
Property, plant and equipment, net | 47,919 | 47,668 | ||
Investments in real estate, net | 28,317 | 26,220 | ||
Long-term investments (of which $45,781 and $54,628 were carried at fair value) | 0 | 0 | ||
Investments in real estate ventures | 131,556 | 141,105 | ||
Operating lease right of use assets | 137,663 | |||
Investments in consolidated subsidiaries | 0 | 0 | ||
Goodwill and other intangible assets, net | 158,482 | 159,100 | ||
Other assets | 42,652 | 37,582 | ||
Total assets | 666,609 | 539,871 | ||
Current liabilities: | ||||
Current portion of notes payable and long-term debt | 10,127 | 311 | ||
Current portion of fair value of derivatives embedded within convertible debt | 0 | 0 | ||
Intercompany payables | 43,807 | 37,912 | ||
Income taxes payable, net | 0 | 0 | ||
Current payments due under the Master Settlement Agreement | 0 | 0 | ||
Current operating lease liability | 15,771 | |||
Other current liabilities | 59,202 | 51,144 | ||
Total current liabilities | 128,907 | 89,367 | ||
Notes payable, long-term debt and other obligations, less current portion | 20,019 | 30,129 | ||
Fair value of derivatives embedded within convertible debt | 0 | |||
Non-current employee benefits | 0 | 0 | ||
Deferred income taxes, net | 25,567 | 32,763 | ||
Non-current operating lease liability | 146,003 | |||
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement | 34,999 | 62,207 | ||
Total liabilities | 355,495 | 214,466 | ||
Commitments and contingencies (Notes 0 and 15) | ||||
Total Vector Group Ltd. stockholders' deficiency | 310,666 | 324,712 | ||
Non-controlling interest | 448 | 693 | ||
Total stockholders' deficiency | 311,114 | 325,405 | ||
Total liabilities and stockholders' deficiency | $ 666,609 | $ 539,871 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information (Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | $ 439,565 | $ 504,790 | $ 538,432 | $ 420,924 | $ 445,939 | $ 513,869 | $ 481,488 | $ 428,966 | $ 1,903,711 | $ 1,870,262 | $ 1,807,476 |
Expenses: | |||||||||||
Cost of sales | 1,301,579 | 1,292,484 | 1,228,046 | ||||||||
Operating, selling, administrative and general expenses | 370,007 | 355,513 | 337,191 | ||||||||
Litigation settlement and judgment expense (income) | 990 | (1,784) | 6,591 | ||||||||
Management fee expense | 0 | 0 | 0 | ||||||||
Operating income | 45,581 | 66,720 | 76,244 | 42,590 | 48,086 | 66,018 | 61,861 | 48,084 | 231,135 | 224,049 | 235,648 |
Other income (expenses): | |||||||||||
Interest expense | (138,448) | (203,780) | (173,685) | ||||||||
Change in fair value of derivatives embedded within convertible debt | 26,425 | 44,989 | 35,919 | ||||||||
Loss on extinguishment of debt | (4,301) | (4,066) | (34,110) | ||||||||
Equity in (losses) earnings from real estate ventures | (19,288) | 14,446 | 21,395 | ||||||||
Equity in earnings in consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Management fee income | 0 | 0 | 0 | ||||||||
Other, net | 38,305 | 3,921 | 4,001 | ||||||||
Income before provision for income taxes | 133,828 | 79,559 | 89,168 | ||||||||
Income tax benefit (expense) | (32,813) | (21,552) | 1,582 | ||||||||
Net income | 10,667 | 36,008 | 39,307 | 15,033 | 20,319 | 15,028 | 18,996 | 3,664 | 101,015 | 58,007 | 90,750 |
Net (income) loss attributed to non-controlling interest | (41) | 98 | (6,178) | ||||||||
Net income attributed to Vector Group Ltd. | $ 10,706 | $ 36,008 | $ 39,307 | $ 14,953 | $ 21,074 | $ 12,002 | $ 17,818 | $ 7,211 | 100,974 | 58,105 | 84,572 |
Comprehensive (income) loss attributed to non-controlling interest | (41) | 98 | (6,178) | ||||||||
Comprehensive income attributed to Vector Group Ltd. | 103,845 | 56,730 | 83,246 | ||||||||
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 | (11,971) | (11,509) | (11,069) | ||||||||
Operating income | 11,971 | 11,509 | 11,069 | ||||||||
Other income (expenses): | |||||||||||
Interest expense | 897 | 0 | 0 | ||||||||
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | ||||||||
Equity in (losses) earnings from real estate ventures | 0 | 0 | 0 | ||||||||
Equity in earnings in consolidated subsidiaries | (189,144) | (199,251) | (215,557) | ||||||||
Management fee income | (11,971) | (11,509) | (11,069) | ||||||||
Other, net | (3,157) | 0 | 0 | ||||||||
Income before provision for income taxes | (191,404) | (199,251) | (215,557) | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Net income | (191,404) | (199,251) | (215,557) | ||||||||
Net (income) loss attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Net income attributed to Vector Group Ltd. | (191,404) | (199,251) | (215,557) | ||||||||
Comprehensive (income) loss attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Comprehensive income attributed to Vector Group Ltd. | (192,829) | (195,820) | (199,187) | ||||||||
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 | 38,051 | 35,332 | 34,790 | ||||||||
Litigation settlement and judgment expense (income) | 0 | 0 | 0 | ||||||||
Management fee expense | 0 | 0 | 0 | ||||||||
Operating income | (38,051) | (35,332) | (34,790) | ||||||||
Other income (expenses): | |||||||||||
Interest expense | (134,594) | (200,916) | (169,910) | ||||||||
Change in fair value of derivatives embedded within convertible debt | 26,425 | 44,989 | 35,919 | ||||||||
Loss on extinguishment of debt | (4,301) | (4,066) | (34,110) | ||||||||
Equity in (losses) earnings from real estate ventures | 0 | 0 | 0 | ||||||||
Equity in earnings in consolidated subsidiaries | 182,959 | 195,582 | 200,480 | ||||||||
Management fee income | 11,971 | 11,509 | 11,069 | ||||||||
Other, net | 30,193 | 3,193 | 576 | ||||||||
Income before provision for income taxes | 74,602 | 14,959 | 9,234 | ||||||||
Income tax benefit (expense) | 26,372 | 43,146 | 75,338 | ||||||||
Net income | 100,974 | 58,105 | 84,572 | ||||||||
Net (income) loss attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Net income attributed to Vector Group Ltd. | 100,974 | 58,105 | 84,572 | ||||||||
Comprehensive (income) loss attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Comprehensive income attributed to Vector Group Ltd. | 103,845 | 56,730 | 83,246 | ||||||||
Subsidiary Guarantors | |||||||||||
Other income (expenses): | |||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Subsidiary Guarantors | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 1,115,318 | 1,111,572 | 1,080,590 | ||||||||
Expenses: | |||||||||||
Cost of sales | 771,130 | 787,251 | 750,768 | ||||||||
Operating, selling, administrative and general expenses | 71,001 | 66,781 | 74,107 | ||||||||
Litigation settlement and judgment expense (income) | 990 | 685 | 6,591 | ||||||||
Management fee expense | 11,971 | 11,509 | 11,069 | ||||||||
Operating income | 260,226 | 245,346 | 238,055 | ||||||||
Other income (expenses): | |||||||||||
Interest expense | (3,838) | (2,797) | (3,740) | ||||||||
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Equity in (losses) earnings from real estate ventures | 0 | 0 | 0 | ||||||||
Equity in earnings in consolidated subsidiaries | 6,185 | 3,669 | 15,077 | ||||||||
Management fee income | 0 | 0 | 0 | ||||||||
Other, net | 5,340 | (997) | 2,101 | ||||||||
Income before provision for income taxes | 267,913 | 245,221 | 251,493 | ||||||||
Income tax benefit (expense) | (65,069) | (60,749) | (73,546) | ||||||||
Net income | 202,844 | 184,472 | 177,947 | ||||||||
Net (income) loss attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Net income attributed to Vector Group Ltd. | 202,844 | 184,472 | 177,947 | ||||||||
Comprehensive (income) loss attributed to non-controlling interest | 0 | 0 | 0 | ||||||||
Comprehensive income attributed to Vector Group Ltd. | 204,269 | 181,041 | 161,577 | ||||||||
Subsidiary Non-Guarantors | |||||||||||
Other income (expenses): | |||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Subsidiary Non-Guarantors | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 788,871 | 759,168 | 727,364 | ||||||||
Expenses: | |||||||||||
Cost of sales | 530,449 | 505,233 | 477,278 | ||||||||
Operating, selling, administrative and general expenses | 261,433 | 253,878 | 228,772 | ||||||||
Litigation settlement and judgment expense (income) | 0 | (2,469) | 0 | ||||||||
Management fee expense | 0 | 0 | 0 | ||||||||
Operating income | (3,011) | 2,526 | 21,314 | ||||||||
Other income (expenses): | |||||||||||
Interest expense | (913) | (67) | (35) | ||||||||
Change in fair value of derivatives embedded within convertible debt | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Equity in (losses) earnings from real estate ventures | (19,288) | 14,446 | 21,395 | ||||||||
Equity in earnings in consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Management fee income | 0 | 0 | 0 | ||||||||
Other, net | 5,929 | 1,725 | 1,324 | ||||||||
Income before provision for income taxes | (17,283) | 18,630 | 43,998 | ||||||||
Income tax benefit (expense) | 5,884 | (3,949) | (210) | ||||||||
Net income | (11,399) | 14,681 | 43,788 | ||||||||
Net (income) loss attributed to non-controlling interest | (41) | 98 | (6,178) | ||||||||
Net income attributed to Vector Group Ltd. | (11,440) | 14,779 | 37,610 | ||||||||
Comprehensive (income) loss attributed to non-controlling interest | (41) | 98 | (6,178) | ||||||||
Comprehensive income attributed to Vector Group Ltd. | $ (11,440) | $ 14,779 | $ 37,610 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 124,071 | $ 181,834 | $ 131,586 |
Cash flows from investing activities: | |||
Sale of investment securities | 21,879 | 18,628 | 28,761 |
Maturities of investment securities | 68,859 | 24,719 | 101,097 |
Purchase of investment securities | (87,766) | (34,445) | (132,654) |
Proceeds from sale or liquidation of long-term investments | 8,256 | 19,487 | 966 |
Purchase of long-term investments | (9,223) | (415) | (32,510) |
Investments in real estate ventures | (52,529) | (9,728) | (38,807) |
Distributions from investments in real estate ventures | 41,300 | 54,233 | 61,718 |
Increase in cash surrender value of life insurance policies | (719) | (764) | (802) |
Decrease in restricted assets | 994 | 526 | 2,250 |
Issuance of notes receivable | 0 | (450) | (1,633) |
Investments in subsidiaries | 0 | 0 | 0 |
Proceeds from sale of fixed assets | 17 | 9 | 76 |
Cash acquired in purchase of subsidiaries | 0 | 654 | 0 |
Purchase of subsidiaries | (380) | (10,404) | (6,569) |
Repayments of notes receivable | 0 | 67 | 0 |
Capital expenditures | (12,575) | (17,682) | (19,869) |
Investments in real estate, net | (2,295) | (2,583) | (619) |
Pay downs of investment securities | 1,083 | 1,611 | 2,633 |
Net cash (used in) provided by investing activities | (23,099) | 43,463 | (35,962) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 230,000 | 325,000 | 850,021 |
Deferred financing costs | (9,802) | (9,400) | (19,200) |
Repayments of debt | (293,419) | (28,689) | (837,205) |
Borrowings under revolver | 243,688 | 307,023 | 157,630 |
Repayments on revolver | (239,526) | (310,551) | (163,474) |
Capital contributions received | 0 | 0 | 0 |
Intercompany dividends paid | 0 | 0 | 0 |
Dividends and distributions on common stock | (238,249) | (225,367) | (211,488) |
Distributions to non-controlling interest | (286) | (2,521) | (2,779) |
Proceeds from exercise of Vector options | 43,230 | ||
Tax withholdings related to net share settlements of stock option exercise | (5,415) | 0 | 0 |
Other | (216) | 0 | 0 |
Net cash (used in) provided by financing activities | (313,225) | 55,495 | (183,265) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (212,253) | 280,792 | (87,641) |
Cash, cash equivalents and restricted cash, beginning of year | 591,729 | 310,937 | 398,578 |
Cash and cash equivalents and restricted cash, end of year | 379,476 | 591,729 | 310,937 |
Consolidating Adjustments | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (268,611) | (248,091) | (275,997) |
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 investments in 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 | 59,467 | 27,224 | 38,458 |
Proceeds from sale of fixed assets | 0 | 0 | 0 |
Cash acquired in purchase of subsidiaries | 0 | ||
Purchase of subsidiaries | 0 | 0 | 0 |
Repayments of notes receivable | (20,000) | ||
Capital expenditures | 0 | 0 | 0 |
Investments in real estate, net | 0 | 0 | 0 |
Pay downs of investment securities | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 59,467 | 7,224 | 58,458 |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 0 | 0 | (20,000) |
Deferred financing costs | 0 | 0 | 0 |
Repayments of debt | 0 | 20,000 | 0 |
Borrowings under revolver | 0 | 0 | 0 |
Repayments on revolver | 0 | 0 | 0 |
Capital contributions received | (59,467) | (27,224) | (38,458) |
Intercompany dividends paid | 268,611 | 248,091 | 275,997 |
Dividends and distributions on common stock | 0 | 0 | 0 |
Distributions to non-controlling interest | 0 | 0 | 0 |
Proceeds from exercise of Vector options | 0 | ||
Tax withholdings related to net share settlements of stock option exercise | 0 | ||
Other | 0 | ||
Net cash (used in) provided by financing activities | 209,144 | 240,867 | 217,539 |
Net (decrease) increase 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 | 166,855 | 188,568 | 177,259 |
Cash flows from investing activities: | |||
Sale of investment securities | 21,879 | 14,673 | 28,761 |
Maturities of investment securities | 68,859 | 24,719 | 101,097 |
Purchase of investment securities | (87,766) | (34,445) | (132,654) |
Proceeds from sale or liquidation of long-term investments | 8,256 | 19,487 | 500 |
Purchase of long-term investments | (6,556) | (415) | (31,650) |
Investments in real estate ventures | 0 | 0 | 0 |
Distributions from investments in real estate ventures | 0 | 0 | 0 |
Increase in cash surrender value of life insurance policies | (235) | (280) | (318) |
Decrease in restricted assets | (29) | 6 | 227 |
Issuance of notes receivable | 0 | (20,000) | |
Investments in subsidiaries | (59,467) | (17,224) | (38,458) |
Proceeds from sale of fixed assets | 0 | 0 | 0 |
Cash acquired in purchase of subsidiaries | 0 | ||
Purchase of subsidiaries | 0 | 0 | 0 |
Repayments of notes receivable | 20,000 | ||
Capital expenditures | (126) | (22) | (35) |
Investments in real estate, net | 0 | 0 | 0 |
Pay downs of investment securities | 1,083 | 1,611 | 2,633 |
Net cash (used in) provided by investing activities | (54,102) | 28,110 | (89,897) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 230,000 | 325,000 | 850,000 |
Deferred financing costs | (9,297) | (9,400) | (19,200) |
Repayments of debt | (292,390) | (26,750) | (835,000) |
Borrowings under revolver | 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 | (238,249) | (225,367) | (211,488) |
Distributions to non-controlling interest | 0 | 0 | 0 |
Proceeds from exercise of Vector options | 43,230 | ||
Tax withholdings related to net share settlements of stock option exercise | (5,415) | ||
Other | 0 | ||
Net cash (used in) provided by financing activities | (315,351) | 63,483 | (172,458) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (202,598) | 280,161 | (85,096) |
Cash, cash equivalents and restricted cash, beginning of year | 474,880 | 194,719 | 279,815 |
Cash and cash equivalents and restricted cash, end of year | 272,282 | 474,880 | 194,719 |
Subsidiary Guarantors | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 219,173 | 204,638 | 171,122 |
Cash flows from investing activities: | |||
Sale of investment securities | 0 | 3,955 | 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 investments in real estate ventures | 0 | 0 | 0 |
Increase in cash surrender value of life insurance policies | (484) | (484) | (484) |
Decrease in restricted assets | 1,023 | 520 | 1,783 |
Issuance of notes receivable | 0 | 0 | |
Investments in subsidiaries | 0 | 0 | 0 |
Proceeds from sale of fixed assets | 8 | 9 | 76 |
Cash acquired in purchase of subsidiaries | 0 | ||
Purchase of subsidiaries | 0 | (10,000) | 0 |
Repayments of notes receivable | 0 | ||
Capital expenditures | (4,173) | (4,599) | (3,705) |
Investments in real estate, net | 0 | 0 | 0 |
Pay downs of investment securities | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | (3,626) | (10,599) | (2,330) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 0 | 0 | 20,000 |
Deferred financing costs | (505) | 0 | 0 |
Repayments of debt | (820) | (21,631) | (1,882) |
Borrowings under revolver | 243,688 | 307,023 | 157,630 |
Repayments on revolver | (239,526) | (310,551) | (163,474) |
Capital contributions received | 1,225 | 10,800 | 2,400 |
Intercompany dividends paid | (215,728) | (176,006) | (182,975) |
Dividends and distributions on common stock | 0 | 0 | 0 |
Distributions to non-controlling interest | 0 | 0 | 0 |
Proceeds from exercise of Vector options | 0 | ||
Tax withholdings related to net share settlements of stock option exercise | 0 | ||
Other | 0 | ||
Net cash (used in) provided by financing activities | (211,666) | (190,365) | (168,301) |
Net (decrease) increase in cash, cash equivalents and restricted cash | 3,881 | 3,674 | 491 |
Cash, cash equivalents and restricted cash, beginning of year | 23,849 | 20,175 | 19,684 |
Cash and cash equivalents and restricted cash, end of year | 27,730 | 23,849 | 20,175 |
Subsidiary Non-Guarantors | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 6,654 | 36,719 | 59,202 |
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 | 466 |
Purchase of long-term investments | (2,667) | 0 | (860) |
Investments in real estate ventures | (52,529) | (9,728) | (38,807) |
Distributions from investments in real estate ventures | 41,300 | 54,233 | 61,718 |
Increase in cash surrender value of life insurance policies | 0 | 0 | 0 |
Decrease in restricted assets | 0 | 0 | 240 |
Issuance of notes receivable | (450) | (1,633) | |
Investments in subsidiaries | 0 | (10,000) | 0 |
Proceeds from sale of fixed assets | 9 | 0 | 0 |
Cash acquired in purchase of subsidiaries | 654 | ||
Purchase of subsidiaries | (380) | (404) | (6,569) |
Repayments of notes receivable | 67 | ||
Capital expenditures | (8,276) | (13,061) | (16,129) |
Investments in real estate, net | (2,295) | (2,583) | (619) |
Pay downs of investment securities | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | (24,838) | 18,728 | (2,193) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 0 | 0 | 21 |
Deferred financing costs | 0 | 0 | 0 |
Repayments of debt | (209) | (308) | (323) |
Borrowings under revolver | 0 | 0 | 0 |
Repayments on revolver | 0 | 0 | 0 |
Capital contributions received | 58,242 | 16,424 | 36,058 |
Intercompany dividends paid | (52,883) | (72,085) | (93,022) |
Dividends and distributions on common stock | 0 | 0 | 0 |
Distributions to non-controlling interest | (286) | (2,521) | (2,779) |
Proceeds from exercise of Vector options | 0 | ||
Tax withholdings related to net share settlements of stock option exercise | 0 | ||
Other | (216) | ||
Net cash (used in) provided by financing activities | 4,648 | (58,490) | (60,045) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (13,536) | (3,043) | (3,036) |
Cash, cash equivalents and restricted cash, beginning of year | 93,000 | 96,043 | 99,079 |
Cash and cash equivalents and restricted cash, end of year | $ 79,464 | $ 93,000 | $ 96,043 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 11,518 | $ 9,694 | $ 11,358 |
Additions Charged to Costs and Expenses | 30,284 | 33,436 | 30,818 |
Deductions | 31,732 | 31,612 | 32,482 |
Balance at End of Period | 10,070 | 11,518 | 9,694 |
Doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 449 | 33 | 88 |
Additions Charged to Costs and Expenses | 246 | 429 | 63 |
Deductions | 21 | 13 | 118 |
Balance at End of Period | 674 | 449 | 33 |
Cash discounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 317 | 365 | 273 |
Additions Charged to Costs and Expenses | 25,970 | 28,154 | 27,685 |
Deductions | 25,968 | 28,202 | 27,593 |
Balance at End of Period | 319 | 317 | 365 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 3,817 | 3,664 | 4,439 |
Additions Charged to Costs and Expenses | 0 | 153 | 0 |
Deductions | 2,525 | 0 | 775 |
Balance at End of Period | 1,292 | 3,817 | 3,664 |
Sales returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 6,935 | 5,632 | 6,558 |
Additions Charged to Costs and Expenses | 4,068 | 4,700 | 3,070 |
Deductions | 3,218 | 3,397 | 3,996 |
Balance at End of Period | 7,785 | $ 6,935 | $ 5,632 |
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 |