Vector (VGR) 10-K 2020 FY Annual report

EXHIBIT 99.2

Vector Group Ltd.

Condensed Consolidating Financial Statements

December 31, 2020

(in thousands of dollars)

Presented herein are Condensed Consolidating Balance Sheet as of December 31, 2020 and the related Condensed Consolidating Statements of Operations for the year ended December 31, 2020 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, 2020
					Subsidiary				Consolidated
	Parent/		Subsidiary		Non-		Consolidating		Vector Group
	Issuer		Guarantors		Guarantors		Adjustments		Ltd.
ASSETS:
Current assets:
Cash and cash equivalents	$	211,147	$	45,636	$	96,059	$	—	$	352,842
Investment securities at fair value	135,585		—		—		—		135,585
Accounts receivable - trade, net	—		16,334		24,377		—		40,711
Intercompany receivables	2,040		—		—		(2,040)		—
Inventories	—		97,545		—		—		97,545
Income taxes receivable, net	—		1,749		99		(1,848)		—
Other current assets	732		6,354		30,134		—		37,220
Total current assets	349,504		167,618		150,669		(3,888)		663,903
Property, plant and equipment, net	398		26,656		50,934		—		77,988
Investments in real estate, net	—		—		15,631		—		15,631
Long-term investment securities at fair value	52,291		—		237		—		52,528
Investments in real estate ventures	—		—		85,400		—		85,400
Operating lease right-of-use assets	5,967		6,154		133,235		—		145,356
Investments in consolidated subsidiaries	405,131		189,830		—		(594,961)		—
Goodwill and other intangible assets, net	—		107,511		100,066		—		207,577
Other assets	15,255		49,809		29,962		—		95,026
Total assets	$	828,546	$	547,578	$	566,134	$	(598,849)	$	1,343,409
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt	$	—	$	12,525	$	12,532	$	(12,500)	$	12,557
Intercompany payables	—		206		1,834		(2,040)		—
Income taxes payable, net	7,695		—		—		(1,848)		5,847
Current payments due under the Master Settlement Agreement	—		38,767		—		—		38,767
Current operating lease liability	1,593		1,790		23,824		—		27,207
Other current liabilities	45,876		84,673		68,607		(219)		198,937
Total current liabilities	55,164		137,961		106,797		(16,607)		283,315
Notes payable, long-term debt and other obligations, less current portion	1,380,713		12,564		12,952		(12,500)		1,393,729
Non-current employee benefits	57,507		9,109		—		—		66,616
Deferred income taxes, net	(11,832)		23,444		20,844		—		32,456
Non-current operating lease liability	5,936		4,909		143,354		—		154,199
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement	745		38,198		34,837		(999)		72,781
Total liabilities	1,488,233		226,185		318,784		(30,106)		2,003,096
Commitments and contingencies
Stockholders' (deficiency) equity attributed to Vector Group Ltd.	(659,687)		321,393		247,350		(568,743)		(659,687)
Total stockholders' (deficiency) equity	(659,687)		321,393		247,350		(568,743)		(659,687)
Total liabilities and stockholders' deficiency	$	828,546	$	547,578	$	566,134	$	(598,849)	$	1,343,409

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

			Year Ended December 31, 2020
					Subsidiary				Consolidated
	Parent/		Subsidiary		Non-		Consolidating		Vector Group
	Issuer		Guarantors		Guarantors		Adjustments		Ltd.
Revenues	$	—	$	1,204,946	$	798,296	$	(573)	$	2,002,669
Expenses:
Cost of sales	—		795,904		571,241		—		1,367,145
Operating, selling, administrative and general expenses	37,662		78,140		214,295		(573)		329,524
Litigation settlement and judgment expense	—		337		—		—		337
Impairments of goodwill and intangible assets	—		—		58,252		—		58,252
Net (gains) losses on sales of assets	—		(2,283)		1,169		—		(1,114)
Management fee expense	—		12,456		—		(12,456)		—
Restructuring charges	—		—		3,382		—		3,382
Operating (loss) income	(37,662)		320,392		(50,043)		12,456		245,143
Other income (expenses):
Interest expense	(118,668)		(2,867)		(268)		262		(121,541)
Change in fair value of derivatives embedded within convertible debt	4,999		—		—		—		4,999
Equity in losses from real estate ventures	—		—		(44,698)		—		(44,698)
Equity in earnings from investments	56,268		—		—		—		56,268
Equity in earnings (losses) in consolidated subsidiaries	161,305		(48,210)		—		(113,095)		—
Management fee income	12,456		—		—		(12,456)		—
Other, net	3,881		(762)		(8,575)		—		(5,456)
Income (loss) before provision for income taxes	82,579		268,553		(103,584)		(112,833)		134,715
Income tax benefit (expense)	10,359		(79,810)		27,674		—		(41,777)
Net income (loss) attributed to Vector Group Ltd.	$	92,938	$	188,743	$	(75,910)	$	(112,833)	$	92,938
Comprehensive income (loss) attributed to Vector Group Ltd.	$	93,672	$	191,461	$	(75,829)	$	(115,632)	$	93,672